| 1 | The Education Council recommends the following: |
| 2 |
|
| 3 | Council/Committee Substitute |
| 4 | Remove the entire bill and insert: |
| 5 | A bill to be entitled |
| 6 | An act relating to the Florida Prepaid College Program; |
| 7 | amending s. 1009.97, F.S.; renaming the Florida Prepaid |
| 8 | College Program; amending s. 1009.98, F.S.; deleting a |
| 9 | restriction on the types of postsecondary educational |
| 10 | institutions to which a qualified beneficiary may apply |
| 11 | his or her benefits under the Florida Prepaid College |
| 12 | Program; requiring certain advertisements to contain a |
| 13 | disclaimer regarding the program; amending s. 732.402, |
| 14 | F.S.; conforming provisions; providing an effective date. |
| 15 |
|
| 16 | Be It Enacted by the Legislature of the State of Florida: |
| 17 |
|
| 18 | Section 1. Paragraph (d) of subsection (3) of section |
| 19 | 1009.97, Florida Statutes, is amended to read: |
| 20 | 1009.97 General provisions.-- |
| 21 | (3) DEFINITIONS.--As used in ss. 1009.97-1009.984, the |
| 22 | term: |
| 23 | (d) "Prepaid program" means the Stanley G. Tate Florida |
| 24 | Prepaid College Program established pursuant to s. 1009.98. |
| 25 | Section 2. Subsection (1) and paragraph (a) of subsection |
| 26 | (3) of section 1009.98, Florida Statutes, are amended to read: |
| 27 | 1009.98 Stanley G. Tate Florida Prepaid College Program.-- |
| 28 | (1) STANLEY G. TATE FLORIDA PREPAID COLLEGE PROGRAM; |
| 29 | CREATION.--There is created the Stanley G. Tate a Florida |
| 30 | Prepaid College Program to provide a medium through which the |
| 31 | cost of registration and dormitory residence may be paid in |
| 32 | advance of enrollment in a state postsecondary institution at a |
| 33 | rate lower than the projected corresponding cost at the time of |
| 34 | actual enrollment. Such payments shall be combined and invested |
| 35 | in a manner that yields, at a minimum, sufficient interest to |
| 36 | generate the difference between the prepaid amount and the cost |
| 37 | of registration and dormitory residence at the time of actual |
| 38 | enrollment. Students who enroll in a state postsecondary |
| 39 | institution pursuant to this section shall be charged no fees in |
| 40 | excess of the terms delineated in the advance payment contract. |
| 41 | (3) TRANSFER OF BENEFITS TO PRIVATE AND OUT-OF-STATE |
| 42 | COLLEGES AND UNIVERSITIES AND TO CAREER CENTERS.--A qualified |
| 43 | beneficiary may apply the benefits of an advance payment |
| 44 | contract toward: |
| 45 | (a) An independent college or university that is located |
| 46 | and chartered in Florida, that is not for profit, that is |
| 47 | accredited by the Commission on Colleges of the Southern |
| 48 | Association of Colleges and Schools or the Accrediting Council |
| 49 | for Independent Colleges and Schools, and that confers degrees |
| 50 | as defined in s. 1005.02. Any advertisement disseminated by an |
| 51 | eligible for-profit independent college or university that |
| 52 | references the Stanley G. Tate Florida Prepaid College Program |
| 53 | shall clearly state the following: "While the benefits of a |
| 54 | Florida Prepaid College contract may be utilized at this |
| 55 | institution, the Florida Prepaid College Board does not endorse |
| 56 | any particular college or university." |
| 57 |
|
| 58 | The board shall transfer or cause to be transferred to the |
| 59 | institution designated by the qualified beneficiary an amount |
| 60 | not to exceed the redemption value of the advance payment |
| 61 | contract at a state postsecondary institution. If the cost of |
| 62 | registration or housing fees at such institution is less than |
| 63 | the corresponding fees at a state postsecondary institution, the |
| 64 | amount transferred may not exceed the actual cost of |
| 65 | registration and housing fees. A transfer authorized under this |
| 66 | subsection may not exceed the number of semester credit hours or |
| 67 | semesters of dormitory residence contracted on behalf of a |
| 68 | qualified beneficiary. Notwithstanding any other provision in |
| 69 | this section, an institution must be an "eligible educational |
| 70 | institution" under s. 529 of the Internal Revenue Code to be |
| 71 | eligible for the transfer of advance payment contract benefits. |
| 72 | Section 3. Paragraph (c) of subsection (2) of section |
| 73 | 732.402, Florida Statutes, is amended to read: |
| 74 | 732.402 Exempt property.-- |
| 75 | (2) Exempt property shall consist of: |
| 76 | (c) Stanley G. Tate Florida Prepaid College Program |
| 77 | contracts purchased and Florida College Savings agreements |
| 78 | established under part IV of chapter 1009. |
| 79 | Section 4. This act shall take effect July 1, 2006. |