Senate Bill sb0550c2

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    Florida Senate - 2006                     CS for CS for SB 550

    By the Committees on Education Appropriations; Education; and
    Senators Baker, Diaz de la Portilla and Campbell




    602-2299-06

  1                      A bill to be entitled

  2         An act relating to scholarship programs;

  3         renaming the Florida Prepaid College Program as

  4         the "Stanley G. Tate Florida Prepaid College

  5         Program"; amending s. 1009.972, F.S.; providing

  6         for the Florida Prepaid Tuition Scholarship

  7         Program to be funded with moneys retained from

  8         certain terminated or cancelled contracts under

  9         the Florida Prepaid College Program;

10         authorizing the Florida Prepaid College Board

11         to approve scholarship programs for such

12         funding; requiring that any matching funds be

13         donated by the private sector; amending s.

14         1009.98, F.S.; deleting a restriction on the

15         types of postsecondary educational institutions

16         in which a qualified beneficiary may use his or

17         her benefits under the Florida Prepaid College

18         Program; requiring certain advertisements to

19         contain a disclaimer regarding the program;

20         conforming provisions to changes made by the

21         act; requiring that any matching funds be

22         donated by the private sector; amending s.

23         1009.983, F.S.; requiring the direct-support

24         organization of the Florida Prepaid College

25         Board to administer the scholarship program;

26         authorizing the board to establish and

27         administer additional scholarship programs

28         supported from escheated funds retained by the

29         board if the matching funds used for the

30         scholarships are obtained solely from the

31         private sector; providing an effective date.

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    Florida Senate - 2006                     CS for CS for SB 550
    602-2299-06




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

 2  

 3         Section 1.  The Florida Prepaid College Program is

 4  renamed and may be cited as the "Stanley G. Tate Florida

 5  Prepaid College Program."

 6         Section 2.  Subsection (5) of section 1009.972, Florida

 7  Statutes, is amended to read:

 8         1009.972  Florida Prepaid College Trust Fund.--

 9         (5)  Notwithstanding the provisions of chapter 717,

10  funds associated with terminated advance payment contracts

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

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

13  The board shall establish procedures for notifying purchasers

14  who subsequently cancel their advance payment contracts of any

15  unclaimed refund and shall establish a time period after which

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

17  contract. The board may transfer funds retained from such

18  terminated advance payment contracts and canceled contracts to

19  the Florida Prepaid Tuition Scholarship Program to provide

20  matching funds for prepaid tuition scholarships for

21  economically disadvantaged youth who remain drug free and

22  crime free. In addition, such funds may be used for any other

23  scholarship programs approved by the board under s.

24  1009.983(8)(b) if the matching funds are obtained solely from

25  the private sector.

26         Section 3.  Paragraph (a) of subsection (3) and

27  paragraph (k) of subsection (4) of section 1009.98, Florida

28  Statutes, are amended to read:

29         1009.98  Florida Prepaid College Program.--

30         (3)  TRANSFER OF BENEFITS TO PRIVATE AND OUT-OF-STATE

31  COLLEGES AND UNIVERSITIES AND TO CAREER CENTERS.--A qualified

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    Florida Senate - 2006                     CS for CS for SB 550
    602-2299-06




 1  beneficiary may apply the benefits of an advance payment

 2  contract toward:

 3         (a)  An independent college or university that is

 4  located and chartered in Florida, that is not for profit, that

 5  is accredited by the Commission on Colleges of the Southern

 6  Association of Colleges and Schools or the Accrediting Council

 7  for Independent Colleges and Schools, and that confers degrees

 8  as defined in s. 1005.02. Any advertisement disseminated by an

 9  eligible for-profit independent college or university which

10  refers to the Florida Prepaid College Program must clearly

11  state: "While the benefits of a Florida Prepaid College

12  contract may be used at this institution, the Florida Prepaid

13  College Board does not endorse any particular college or

14  university."

15  

16  The board shall transfer or cause to be transferred to the

17  institution designated by the qualified beneficiary an amount

18  not to exceed the redemption value of the advance payment

19  contract at a state postsecondary institution. If the cost of

20  registration or housing fees at such institution is less than

21  the corresponding fees at a state postsecondary institution,

22  the amount transferred may not exceed the actual cost of

23  registration and housing fees. A transfer authorized under

24  this subsection may not exceed the number of semester credit

25  hours or semesters of dormitory residence contracted on behalf

26  of a qualified beneficiary.  Notwithstanding any other

27  provision in this section, an institution must be an "eligible

28  educational institution" under s. 529 of the Internal Revenue

29  Code to be eligible for the transfer of advance payment

30  contract benefits.

31  

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    Florida Senate - 2006                     CS for CS for SB 550
    602-2299-06




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

 2  develop advance payment contracts for registration and may

 3  develop advance payment contracts for dormitory residence as

 4  provided in this section. Advance payment contracts shall be

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

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

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

 8  contracts that have not been terminated or the benefits used

 9  shall be considered terminated. Time expended by a qualified

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

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

12  time specified by the board. A No purchaser or qualified

13  beneficiary whose advance payment contract is terminated

14  pursuant to this paragraph is not shall be entitled to a

15  refund. Notwithstanding chapter 717, the board shall retain

16  any moneys paid by the purchaser for an advance payment

17  contract that has been terminated in accordance with this

18  paragraph. Such moneys may be transferred to the Florida

19  Prepaid Tuition Scholarship Program to provide matching funds

20  for prepaid tuition scholarships for economically

21  disadvantaged youths who remain drug free and crime free. In

22  addition, such funds may be used for any other scholarship

23  programs approved by the board under s. 1009.983(8)(b) if the

24  matching funds are obtained solely from the private sector.

25         Section 4.  Subsection (8) is added to section

26  1009.983, Florida Statutes, to read:

27         1009.983  Direct-support organization; authority.--

28         (8)(a)  The direct-support organization shall

29  administer the Florida Prepaid Tuition Scholarship Program

30  pursuant to the provisions of s. 1009.984.

31  

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    Florida Senate - 2006                     CS for CS for SB 550
    602-2299-06




 1         (b)  The board may establish and administer additional

 2  scholarship programs supported from escheated funds retained

 3  by the board pursuant to s. 1009.972(5) if the matching funds

 4  used for such scholarships are obtained solely from the

 5  private sector.

 6         Section 5.  This act shall take effect July 1, 2006.

 7  

 8          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 9                      CS for Senate Bill 550

10                                 

11  CS/CS/SB 550 gives authority to approve additional scholarship
    programs to the Prepaid College Board rather than both the
12  board and the direct support organization.  It claries that
    only private, rather than state funds, shall be used to match
13  the additional scholarships authorized.  The committee
    substitute also removes students with disabilities as a
14  specified target population for prepaid tuition scholarships.

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