Senate Bill sb1162c1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2005 CS for SB 1162
By the Committee on Governmental Oversight and Productivity;
and Senator Atwater
585-2013-05
1 A bill to be entitled
2 An act relating to the Florida Prepaid College
3 Program; amending s. 1009.98, F.S.; deleting
4 the requirement that an independent college or
5 university be a not-for-profit institution to
6 be eligible for a transfer of benefits;
7 providing a restriction on the transfer of
8 benefits; revising provisions relating to
9 eligibility for benefits if the program is
10 terminated; providing an effective date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Subsections (3) and (8) of section 1009.98,
15 Florida Statutes, are amended to read:
16 1009.98 Florida Prepaid College Program.--
17 (3) TRANSFER OF BENEFITS TO PRIVATE AND OUT-OF-STATE
18 COLLEGES AND UNIVERSITIES AND TO CAREER CENTERS.--A qualified
19 beneficiary may apply the benefits of an advance payment
20 contract toward:
21 (a) An independent college or university that is
22 located and chartered in Florida, that is not for profit, that
23 is accredited by the Commission on Colleges of the Southern
24 Association of Colleges and Schools or the Accrediting Council
25 for Independent Colleges and Schools, and that confers degrees
26 as defined in s. 1005.02.
27 (b) An out-of-state college or university that is not
28 for profit and is accredited by a regional accrediting
29 association, and that confers degrees.
30 (c) An applied technology diploma program or career
31 certificate program conducted by a community college listed in
1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2005 CS for SB 1162
585-2013-05
1 s. 1004.02(2) or career center operated by a district school
2 board.
3
4 The board shall transfer or cause to be transferred to the
5 institution designated by the qualified beneficiary an amount
6 not to exceed the redemption value of the advance payment
7 contract at a state postsecondary institution. If the cost of
8 registration or housing fees at such institution is less than
9 the corresponding fees at a state postsecondary institution,
10 the amount transferred may not exceed the actual cost of
11 registration and housing fees. A transfer authorized under
12 this subsection may not exceed the number of semester credit
13 hours or semesters of dormitory residence contracted on behalf
14 of a qualified beneficiary. The board may refuse to transfer
15 the benefits of an advance payment contract to an otherwise
16 eligible institution if the institution or its representatives
17 distribute materials, regardless of form, which describe the
18 use or transfer of the benefits of an advance payment contract
19 and which have not been approved by the board. Notwithstanding
20 any other provision in this section, an institution must be an
21 "eligible educational institution" under s. 529 of the
22 Internal Revenue Code to be eligible for the transfer of
23 advance payment contract benefits.
24 (8) PROGRAM TERMINATION.--In the event that the state
25 determines the prepaid program to be financially infeasible,
26 the state may discontinue the provision of the program. Any
27 qualified beneficiary who has been accepted by and is enrolled
28 or is within 18 5 years of enrollment in an eligible
29 independent college or university or state postsecondary
30 institution shall be entitled to exercise the complete
31 benefits for which he or she has contracted. All other
2
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2005 CS for SB 1162
585-2013-05
1 contract holders shall receive a refund of the amount paid in
2 and an additional amount in the nature of interest at a rate
3 that corresponds, at a minimum, to the prevailing interest
4 rates for savings accounts provided by banks and savings and
5 loan associations.
6 Section 2. This act shall take effect July 1, 2005.
7
8 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
9 Senate Bill 1162
10
11 The CS permits for-profit schools to take advantage of the
benefit transfer provisions now provided only to
12 not-for-profit schools and expands the enforcement power of
the board to deny benefit transfers to entities that issue
13 materials that have not received board approval.
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
3
CODING: Words stricken are deletions; words underlined are additions.