Senate Bill sb1966

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    Florida Senate - 2005                                  SB 1966

    By Senator King





    8-1312A-05

  1                      A bill to be entitled

  2         An act relating to college savings programs;

  3         amending s. 1009.972, F.S., relating to the

  4         Florida Prepaid College Trust Fund; providing

  5         for the transfer of funds from a terminated

  6         advance payment contract to a direct-support

  7         organization; providing that the direct-support

  8         organization may award scholarships from the

  9         funds of terminated contracts to certain

10         children whose parents were members of the

11         Armed Forces or Coast Guard of the United

12         States who died in certain combat theaters of

13         operation and who were state residents or

14         listed the state as their domicile at the time

15         of their death; amending s. 1009.98, F.S.,

16         relating to the Florida Prepaid College

17         Program, to conform; amending s. 1009.981,

18         F.S., relating to the Florida College Savings

19         Program; providing that the direct-support

20         organization may award scholarships from the

21         funds of terminated participation agreements to

22         certain children whose parents were members of

23         the Armed Forces or Coast Guard of the United

24         States who died in certain combat theaters of

25         operation and who were state residents or

26         listed the state as their domicile at the time

27         of their death; providing an effective date.

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29  Be It Enacted by the Legislature of the State of Florida:

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    Florida Senate - 2005                                  SB 1966
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 1         Section 1.  Subsection (5) of section 1009.972, Florida

 2  Statutes, is amended to read:

 3         1009.972  Florida Prepaid College Trust Fund.--

 4         (5)  Notwithstanding the provisions of chapter 717,

 5  funds associated with terminated advance payment contracts

 6  pursuant to s. 1009.98(4)(k) and canceled contracts for which

 7  no refunds have been claimed shall be retained by the board.

 8  The board shall establish procedures for notifying purchasers

 9  who subsequently cancel their advance payment contracts of any

10  unclaimed refund and shall establish a time period after which

11  no refund may be claimed by a purchaser who canceled a

12  contract. The board may transfer funds retained from such

13  terminated advance payment contracts and canceled contracts to

14  the direct-support organization established under s. 1009.984

15  for the Florida Prepaid Tuition Scholarship Program to provide

16  matching funds for prepaid tuition scholarships for

17  economically disadvantaged youth who remain drug free and

18  crime free and for children of members of the Armed Forces or

19  Coast Guard of the United States who died while participating

20  in the combat theater of operations for Iraqi Freedom or

21  Enduring Freedom after June 30, 2005, and were state residents

22  at the time of their death or listed the state as their

23  domicile at the time of their death.

24         Section 2.  Paragraph (k) of subsection (4) of section

25  1009.98, Florida Statutes, is amended to read:

26         1009.98  Florida Prepaid College Program.--

27         (4)  ADVANCE PAYMENT CONTRACTS.--The board shall

28  develop advance payment contracts for registration and may

29  develop advance payment contracts for dormitory residence as

30  provided in this section. Advance payment contracts shall be

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    Florida Senate - 2005                                  SB 1966
    8-1312A-05




 1  exempt from chapter 517 and the Florida Insurance Code. Such

 2  contracts shall include, but not be limited to, the following:

 3         (k)  The period of time after which advance payment

 4  contracts that have not been terminated or the benefits used

 5  shall be considered terminated. Time expended by a qualified

 6  beneficiary as an active duty member of any of the armed

 7  services of the United States shall be added to the period of

 8  time specified by the board. No purchaser or qualified

 9  beneficiary whose advance payment contract is terminated

10  pursuant to this paragraph shall be entitled to a refund.

11  Notwithstanding chapter 717, the board shall retain any moneys

12  paid by the purchaser for an advance payment contract that has

13  been terminated in accordance with this paragraph. Such moneys

14  may be transferred to the direct-support organization

15  established under s. 1009.984 for the Florida Prepaid Tuition

16  Scholarship Program to provide matching funds for prepaid

17  tuition scholarships for economically disadvantaged youths who

18  remain drug free and crime free and for children of members of

19  the Armed Forces or Coast Guard of the United States who died

20  while participating in the combat theater of operations for

21  Iraqi Freedom or Enduring Freedom after June 30,2005, and were

22  state residents at the time of their death or listed the state

23  as their domicile at the time of their death.

24         Section 3.  Paragraph (b) of subsection (2) of section

25  1009.981, Florida Statutes, is amended to read:

26         1009.981  Florida College Savings Program.--

27         (2)  PARTICIPATION AGREEMENTS.--

28         (b)  The board shall develop a participation agreement

29  that which shall be the agreement between the board and each

30  benefactor and that, which may include, but is not limited to:

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    Florida Senate - 2005                                  SB 1966
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 1         1.  The name, date of birth, and social security number

 2  of the designated beneficiary.

 3         2.  The amount of the contribution or contributions and

 4  number of contributions required from a benefactor on behalf

 5  of a designated beneficiary.

 6         3.  The terms and conditions under which benefactors

 7  shall remit contributions, including, but not limited to, the

 8  date or dates upon which each contribution is due. Deposits to

 9  the savings program by benefactors may only be in cash.

10  Benefactors may contribute in a lump sum, periodically, in

11  installments, or through electronic funds transfer or employer

12  payroll deductions.

13         4.  Provisions for late contribution charges and for

14  default.

15         5.  Provisions for penalty fees for withdrawals from

16  the program.

17         6.  The name of the person who may terminate

18  participation in the program. The participation agreement must

19  specify whether the account may be terminated by the

20  benefactor, the designated beneficiary, a specific designated

21  person, or any combination of these persons.

22         7.  The terms and conditions under which an account may

23  be terminated, modified, or converted, the name of the person

24  entitled to any refund due as a result of termination of the

25  account pursuant to such terms and conditions, and the amount

26  of refund, if any, due to the person so named.

27         8.  Penalties for distributions not used or made in

28  accordance with s. 529 of the Internal Revenue Code.

29         9.  Any charges or fees in connection with the

30  administration of the savings fund.

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    Florida Senate - 2005                                  SB 1966
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 1         10.  The period of time after which each participation

 2  agreement shall be considered to be terminated. Time expended

 3  by a designated beneficiary as an active duty member of any of

 4  the armed services of the United States shall be added to the

 5  period specified pursuant to this subparagraph. Should a

 6  participation agreement be terminated, the balance of the

 7  account, after notice to the benefactor, shall be declared

 8  unclaimed and abandoned property. The board shall retain any

 9  moneys paid by the benefactor for a participation agreement

10  that has been terminated in accordance with this subparagraph.

11  Such moneys may be transferred to the direct-support

12  organization established under s. 1009.984 for the Florida

13  Prepaid Tuition Scholarship Program to provide matching funds

14  for prepaid tuition scholarships for economically

15  disadvantaged youths who remain drug free and crime free and

16  for children of members of the Armed Forces or Coast Guard of

17  the United States who died while participating in the combat

18  theater of operations for Iraqi Freedom or Enduring Freedom

19  after June 30, 2005, and were state residents at the time of

20  their death or listed the state as their domicile at the time

21  of their death.

22         11.  Other terms and conditions deemed by the board to

23  be necessary or proper.

24         Section 4.  This act shall take effect July 1, 2005.

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    Florida Senate - 2005                                  SB 1966
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 1            *****************************************

 2                          SENATE SUMMARY

 3    Amends provisions relating to the Florida Prepaid College
      Trust Fund to provide for the transfer of funds from a
 4    terminated advance payment contract to a direct-support
      organization. Authorizes the direct-support organization
 5    to award scholarships from the funds of terminated
      contracts to certain children whose parents were members
 6    of the Armed Forces or Coast Guard of the United States
      who died in certain combat theaters of operation and who
 7    were state residents or listed the state as their
      domicile at the time of their death. Amends provisions
 8    relating to the Florida Prepaid College Program, to
      conform. Amends provisions relating to the Florida
 9    College Savings Program to provide that the
      direct-support organization may award scholarships from
10    the funds of terminated participation agreements to
      certain children whose parents were members of the Armed
11    Forces or Coast Guard of the United States who died in
      certain combat theaters of operation and who were state
12    residents or listed the state as their domicile at the
      time of their death.
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