| 1 | A bill to be entitled |
| 2 | An act relating to the Florida Prepaid College Board |
| 3 | programs; amending s. 1009.97, F.S.; renaming the Florida |
| 4 | Prepaid College Program; amending s. 1009.972, F.S.; |
| 5 | authorizing funds in the Florida Prepaid Tuition |
| 6 | Scholarship Program to be used for certain approved |
| 7 | scholarship programs; amending s. 1009.98, F.S.; deleting |
| 8 | a restriction on the types of postsecondary educational |
| 9 | institutions to which a qualified beneficiary may apply |
| 10 | his or her benefits under the Florida Prepaid College |
| 11 | Program; requiring certain advertisements to contain a |
| 12 | disclaimer regarding the program; conforming provisions; |
| 13 | amending s. 1009.983, F.S.; requiring the direct-support |
| 14 | organization of the Florida Prepaid College Board to |
| 15 | administer the Florida Prepaid Tuitions Scholarship |
| 16 | Program; authorizing the board to establish and administer |
| 17 | additional scholarship programs supported from escheated |
| 18 | funds retained by the board if the matching funds used for |
| 19 | the scholarships are obtained from the private sector; |
| 20 | amending s. 732.402, F.S.; conforming provisions; |
| 21 | providing an effective date. |
| 22 |
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| 23 | Be It Enacted by the Legislature of the State of Florida: |
| 24 |
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| 25 | Section 1. Paragraph (d) of subsection (3) of section |
| 26 | 1009.97, Florida Statutes, is amended to read: |
| 27 | 1009.97 General provisions.-- |
| 28 | (3) DEFINITIONS.--As used in ss. 1009.97-1009.984, the |
| 29 | term: |
| 30 | (d) "Prepaid program" means the Stanley G. Tate Florida |
| 31 | Prepaid College Program established pursuant to s. 1009.98. |
| 32 | Section 2. Subsection (5) of section 1009.972, Florida |
| 33 | Statutes, is amended to read: |
| 34 | 1009.972 Florida Prepaid College Trust Fund.-- |
| 35 | (5) Notwithstanding the provisions of chapter 717, funds |
| 36 | associated with terminated advance payment contracts pursuant to |
| 37 | s. 1009.98(4)(k) and canceled contracts for which no refunds |
| 38 | have been claimed shall be retained by the board. The board |
| 39 | shall establish procedures for notifying purchasers who |
| 40 | subsequently cancel their advance payment contracts of any |
| 41 | unclaimed refund and shall establish a time period after which |
| 42 | no refund may be claimed by a purchaser who canceled a contract. |
| 43 | The board may transfer funds retained from such terminated |
| 44 | advance payment contracts and canceled contracts to the Florida |
| 45 | Prepaid Tuition Scholarship Program to provide matching funds |
| 46 | for prepaid tuition scholarships for economically disadvantaged |
| 47 | youth who remain drug free and crime free. In addition, such |
| 48 | funds may be used for any other scholarship programs approved by |
| 49 | the board under s. 1009.983(8)(b) provided that any matching |
| 50 | funds are obtained solely from the private sector. |
| 51 | Section 3. Subsection (1), paragraph (a) of subsection |
| 52 | (3), and paragraph (k) of subsection (4) of section 1009.98, |
| 53 | Florida Statutes, are amended to read: |
| 54 | 1009.98 Stanley G. Tate Florida Prepaid College Program.-- |
| 55 | (1) STANLEY G. TATE FLORIDA PREPAID COLLEGE PROGRAM; |
| 56 | CREATION.--There is created the Stanley G. Tate a Florida |
| 57 | Prepaid College Program to provide a medium through which the |
| 58 | cost of registration and dormitory residence may be paid in |
| 59 | advance of enrollment in a state postsecondary institution at a |
| 60 | rate lower than the projected corresponding cost at the time of |
| 61 | actual enrollment. Such payments shall be combined and invested |
| 62 | in a manner that yields, at a minimum, sufficient interest to |
| 63 | generate the difference between the prepaid amount and the cost |
| 64 | of registration and dormitory residence at the time of actual |
| 65 | enrollment. Students who enroll in a state postsecondary |
| 66 | institution pursuant to this section shall be charged no fees in |
| 67 | excess of the terms delineated in the advance payment contract. |
| 68 | (3) TRANSFER OF BENEFITS TO PRIVATE AND OUT-OF-STATE |
| 69 | COLLEGES AND UNIVERSITIES AND TO CAREER CENTERS.--A qualified |
| 70 | beneficiary may apply the benefits of an advance payment |
| 71 | contract toward: |
| 72 | (a) An independent college or university that is located |
| 73 | and chartered in Florida, that is not for profit, that is |
| 74 | accredited by the Commission on Colleges of the Southern |
| 75 | Association of Colleges and Schools or the Accrediting Council |
| 76 | for Independent Colleges and Schools, and that confers degrees |
| 77 | as defined in s. 1005.02. Any advertisement disseminated by an |
| 78 | eligible for-profit independent college or university that |
| 79 | references the Stanley G. Tate Florida Prepaid College Program |
| 80 | shall clearly state the following: "While the benefits of a |
| 81 | Florida Prepaid College contract may be utilized at this |
| 82 | institution, the Florida Prepaid College Board does not endorse |
| 83 | any particular college or university." |
| 84 |
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| 85 | The board shall transfer or cause to be transferred to the |
| 86 | institution designated by the qualified beneficiary an amount |
| 87 | not to exceed the redemption value of the advance payment |
| 88 | contract at a state postsecondary institution. If the cost of |
| 89 | registration or housing fees at such institution is less than |
| 90 | the corresponding fees at a state postsecondary institution, the |
| 91 | amount transferred may not exceed the actual cost of |
| 92 | registration and housing fees. A transfer authorized under this |
| 93 | subsection may not exceed the number of semester credit hours or |
| 94 | semesters of dormitory residence contracted on behalf of a |
| 95 | qualified beneficiary. Notwithstanding any other provision in |
| 96 | this section, an institution must be an "eligible educational |
| 97 | institution" under s. 529 of the Internal Revenue Code to be |
| 98 | eligible for the transfer of advance payment contract benefits. |
| 99 | (4) ADVANCE PAYMENT CONTRACTS.--The board shall develop |
| 100 | advance payment contracts for registration and may develop |
| 101 | advance payment contracts for dormitory residence as provided in |
| 102 | this section. Advance payment contracts shall be exempt from |
| 103 | chapter 517 and the Florida Insurance Code. Such contracts shall |
| 104 | include, but not be limited to, the following: |
| 105 | (k) The period of time after which advance payment |
| 106 | contracts that have not been terminated or the benefits used |
| 107 | shall be considered terminated. Time expended by a qualified |
| 108 | beneficiary as an active duty member of any of the armed |
| 109 | services of the United States shall be added to the period of |
| 110 | time specified by the board. A No purchaser or qualified |
| 111 | beneficiary whose advance payment contract is terminated |
| 112 | pursuant to this paragraph is not shall be entitled to a refund. |
| 113 | Notwithstanding chapter 717, the board shall retain any moneys |
| 114 | paid by the purchaser for an advance payment contract that has |
| 115 | been terminated in accordance with this paragraph. Such moneys |
| 116 | may be transferred to the Florida Prepaid Tuition Scholarship |
| 117 | Program to provide matching funds for prepaid tuition |
| 118 | scholarships for economically disadvantaged youths who remain |
| 119 | drug free and crime free. In addition, such funds may be used |
| 120 | for any other scholarship programs approved by the board under |
| 121 | s. 1009.983(8)(b) provided that any matching funds are obtained |
| 122 | solely from the private sector. |
| 123 | Section 4. Subsection (8) is added to section 1009.983, |
| 124 | Florida Statutes, to read: |
| 125 | 1009.983 Direct-support organization; authority.-- |
| 126 | (8)(a) The direct-support organization shall administer |
| 127 | the Florida Prepaid Tuition Scholarship Program pursuant to the |
| 128 | provisions of s. 1009.984. |
| 129 | (b) The board may establish and administer additional |
| 130 | scholarship programs supported from escheated funds retained by |
| 131 | the board pursuant to s. 1009.972(5) provided that any matching |
| 132 | funds for such scholarships are obtained solely from the private |
| 133 | sector. The board shall develop criteria for approval of |
| 134 | additional scholarship programs supported from escheated funds. |
| 135 | The direct-support organization's annual report shall include a |
| 136 | list of any additional scholarship programs approved by the |
| 137 | board pursuant to this subsection, including a description of |
| 138 | the programs and the amount of escheated funds utilized to fund |
| 139 | the programs. |
| 140 | Section 5. Paragraph (c) of subsection (2) of section |
| 141 | 732.402, Florida Statutes, is amended to read: |
| 142 | 732.402 Exempt property.-- |
| 143 | (2) Exempt property shall consist of: |
| 144 | (c) Stanley G. Tate Florida Prepaid College Program |
| 145 | contracts purchased and Florida College Savings agreements |
| 146 | established under part IV of chapter 1009. |
| 147 | Section 6. This act shall take effect July 1, 2006. |