House Bill hb0463e1
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CS/HB 463, First Engrossed
1 A bill to be entitled
2 An act relating to the Florida Prepaid College
3 Program; amending s. 240.551, F.S.; revising
4 the accreditation requirements for independent
5 college or university eligibility purposes;
6 clarifying that the amount of benefits
7 transferred to an eligible independent college
8 or university, an eligible out-of-state college
9 or university, an applied technology diploma
10 program, or a vocational certificate program or
11 refunded to a purchaser shall not exceed the
12 redemption value of the advance payment
13 contract at a state postsecondary institution;
14 providing for a rollover of benefits to a
15 college savings program at the redemption value
16 of the advance payment contract at a state
17 postsecondary institution; revising provisions
18 relating to appointment of directors of the
19 direct-support organization; providing an
20 effective date.
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22 Be It Enacted by the Legislature of the State of Florida:
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24 Section 1. Subsection (10) and paragraphs (a), (b),
25 and (c) of subsection (13) of section 240.551, Florida
26 Statutes, are amended, and paragraph (f) is added to
27 subsection (13) of said section, to read:
28 Section 2. Subsection (10), paragraphs (b) and (c) of
29 subsection (13), and paragraph (e) of subsection (22) of
30 section 240.551, Florida Statutes, are
31 240.551 Florida Prepaid College Program.--
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CS/HB 463, First Engrossed
1 (10) TRANSFER OF BENEFITS TO PRIVATE AND OUT-OF-STATE
2 COLLEGES AND UNIVERSITIES AND TO AREA TECHNICAL CENTERS.--A
3 qualified beneficiary may apply the benefits of an advance
4 payment contract toward:
5 (a) Any eligible independent college or university. An
6 independent college or university that is located and
7 chartered in Florida, that is not for profit, that is
8 accredited by the Commission on Colleges of the Southern
9 Association of Colleges and Schools or the Accrediting Council
10 for Commission of the Association of Independent Colleges and
11 Schools, and that confers degrees as defined in s. 246.021, is
12 eligible for such application. The board shall transfer, or
13 cause to have transferred, to the eligible independent college
14 or university designated by the qualified beneficiary an
15 amount not to exceed the redemption value of the advance
16 payment contract at within a state postsecondary institution.
17 If the cost of registration or housing fees at the independent
18 college or university is less than the corresponding fees at a
19 state postsecondary institution, the amount transferred shall
20 not exceed the actual cost of registration or housing fees. A
21 transfer authorized under this paragraph may not exceed the
22 number of semester credit hours or semesters of dormitory
23 residence contracted on behalf of a qualified beneficiary.
24 (b) An eligible out-of-state college or university. An
25 out-of-state college or university that is not for profit and
26 is accredited by a regional accrediting association, and that
27 confers degrees, is eligible for such application. The board
28 shall transfer, or cause to have transferred, an amount not to
29 exceed the redemption value of the advance payment contract at
30 a state postsecondary institution or the original purchase
31 price plus 5 percent compounded interest, whichever is less,
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CS/HB 463, First Engrossed
1 after assessment of a reasonable transfer fee. If the cost of
2 registration or housing fees charged the qualified beneficiary
3 at the eligible out-of-state college or university is less
4 than this calculated amount, the amount transferred shall not
5 exceed the actual cost of registration or housing fees. Any
6 remaining amount shall be transferred in subsequent semesters
7 until the transfer value is depleted. A transfer authorized
8 under this paragraph may not exceed the number of semester
9 credit hours or semesters of dormitory residence contracted on
10 behalf of a qualified beneficiary.
11 (c) An applied technology diploma program or
12 vocational certificate program conducted by a community
13 college listed in s. 240.3031 or an area technical center
14 operated by a district school board. The board shall transfer
15 or cause to be transferred to the community college or area
16 technical center designated by the qualified beneficiary an
17 amount not to exceed the redemption value of the advance
18 payment contract at within a state postsecondary institution.
19 If the cost of the fees charged by the college or center, as
20 authorized in s. 239.117, is less than the corresponding fees
21 at a state postsecondary institution, the amount transferred
22 may not exceed the actual cost of the fees. A transfer
23 authorized under this paragraph may not exceed the number of
24 semester credit hours contracted on behalf of a qualified
25 beneficiary.
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27 Notwithstanding any other provision in this section, an
28 institution must be an "eligible educational institution"
29 under s. 529 of the Internal Revenue Code to be eligible for
30 the transfer of advance payment contract benefits.
31 (13) REFUNDS.--
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CS/HB 463, First Engrossed
1 (a) Except as provided in paragraphs (b), and (c), and
2 (f), no refund shall exceed the amount paid into the fund by
3 the purchaser.
4 (b) If the beneficiary is awarded a scholarship, the
5 terms of which cover the benefits included in the advance
6 payment contracts, moneys paid for the purchase of the advance
7 payment contracts shall be refunded returned to the purchaser
8 in semester installments coinciding with the matriculation by
9 the beneficiary in an amount which, in total, does not exceed
10 the redemption value of the advance payment contract at a
11 state postsecondary institution amounts of either the original
12 purchase price plus 5 percent compounded interest, or the
13 current rates at state postsecondary institutions, whichever
14 is less.
15 (c) In the event of the death or total disability of
16 the beneficiary, moneys paid for the purchase of advance
17 payment contracts shall be refunded returned to the purchaser
18 in an amount not to exceed the redemption value of the advance
19 payment contract at a state postsecondary institution together
20 with 5 percent compounded interest, or the current rates at
21 state postsecondary institutions, whichever is less.
22 (f) Benefits purchased under the Florida Prepaid
23 College Program shall be permitted to roll over to a college
24 savings program, as defined under s. 529 of the United States
25 Internal Revenue Code, relating to qualified state tuition
26 programs. The board shall transfer, or cause to have
27 transferred, an amount not to exceed the redemption value of
28 the advance payment contract at a state postsecondary
29 institution in Florida at the time of the rollover, after
30 assessment of a reasonable transfer fee.
31 (22) DIRECT-SUPPORT ORGANIZATION; AUTHORITY.--
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CS/HB 463, First Engrossed
1 (e) The chair and the executive director of the board
2 shall be directors of the direct-support organization and
3 shall jointly name, at a minimum, three other individuals to
4 serve as directors of the organization.
5 Section 3. This act shall take effect July 1, 2001.
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