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A bill to be entitled

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An act relating to the Florida Prepaid Tuition Scholarship

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Endowment; creating s. 215.5605, F.S.; creating the

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endowment within the State Board of Administration for the

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purpose of funding scholarships for economically

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disadvantaged youth; providing for moneys from the tax on

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slot machines to be transferred from the Educational

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Enhancement Trust Fund to the endowment as provided in the

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General Appropriations Act; providing definitions;

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requiring the board to invest funds of the endowment and

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provide reports to the Legislature; providing for the

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transfer of earnings from the endowment to the Educational

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Enhancement Trust Fund; requiring the Department of

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Education to be accountable for funds appropriated to the

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department; providing requirements for costs and fees;

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providing requirements for the expenditure and use of

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distributions from the endowment; providing for revenues

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of the endowment to be appropriated to the direct-support

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organization of the Florida Prepaid College Board;

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providing for the reversion of unencumbered balances of

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appropriations and undisbursed balances of the endowment's

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principal; providing an effective date.

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

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     Section 1.  Section 215.5605, Florida Statutes, is created

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to read:

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     215.5605 Florida Prepaid Tuition Scholarship Endowment.--

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     (1) FLORIDA PREPAID TUITION SCHOLARSHIP ENDOWMENT;

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CREATION; PRINCIPAL.--

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     (a) There is created the Florida Prepaid Tuition

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Scholarship Endowment, to be administered by the State Board of

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Administration. The purpose of the endowment is to provide a

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perpetual source of enhanced funding for the Florida Prepaid

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Tuition Scholarship Program to provide prepaid postsecondary

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tuition scholarships for economically disadvantaged youth. The

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endowment is exempt from the service charges imposed by s.

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215.20.

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     (b) The endowment shall receive moneys from the tax on slot

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machine revenues as defined in s. 551.106. Moneys to be

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transferred from the Educational Enhancement Trust Fund to the

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Florida Prepaid Tuition Scholarship Endowment shall be in the

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amount provided by the Legislature in the General Appropriations

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Act to the Department of Education. The department shall transfer

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the appropriated funds to the endowment at the State Board of

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Administration.

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     (c) The principal in the endowment shall be reserved and

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accounted for within the endowment and the earnings shall be

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used, as appropriated by the Legislature, for the funding of

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Florida Prepaid Tuition Scholarships for economically

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disadvantaged youth as provided in s. 1009.984.

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     (2) DEFINITIONS.--As used in this section, the term:

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     (a) "Board" means the State Board of Administration

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established by s. 16, Art. IX of the State Constitution of 1885

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and incorporated into s. 9(c), Art. XII of the State Constitution

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of 1968.

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     (b) "Endowment" means the Florida Prepaid Tuition

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Scholarship Endowment.

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     (c) "Earnings" means all income generated by investments.

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     (d) "Department" means the Department of Education.

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     (3) ADMINISTRATION.--

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     (a) The board may invest and reinvest funds of the

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endowment in accordance with s. 215.47 and consistent with a

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trust agreement as provided in s. 215.44.

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     (b) In accordance with s. 215.44, the board shall include

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separate sections concerning the financial status of the

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endowment in its annual investment report to the Legislature.

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     (c) The board shall report to the Legislature by February 1

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each year the estimated amount of earnings in the endowment as of

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June 30 of that year. The Legislature may or may not appropriate

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the available earnings in any fiscal year for Florida Prepaid

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Tuition Scholarships as provided in s. 1009.984. The board shall

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transfer earnings to the Educational Enhancement Trust Fund in

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the amount appropriated by the Legislature.

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     (d) Accountability for funds from the endowment which have

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been appropriated to the Department of Education and distributed

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by the board shall reside with the department. The board is not

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responsible or accountable for the proper expenditure of funds

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from the endowment after distribution to the department.

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     (e) Costs and fees of the board for investment services

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shall be deducted from the earnings accruing to the endowment.

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Fees for investment services may not be greater than the fees

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charged to the Florida Retirement System.

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     (4) AVAILABILITY OF FUNDS; USES.--

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     (a) Earnings in the Florida Prepaid Tuition Endowment Fund

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shall be transferred by the board to the Educational Enhancement

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Trust Fund in the amount appropriated from the Educational

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Enhancement Trust Fund for Florida Prepaid Tuition Scholarships,

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as provided in s. 1009.984, by the Legislature.

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     (b) In order to ensure that the expenditure of funds earned

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from the Florida Prepaid Tuition Endowment Fund will be used only

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for the purposes intended by the Legislature, the Legislature

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shall establish line-item categories that designate the use of

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the appropriated funds in the General Appropriations Act.

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     (c) Subject to legislative appropriations, the Florida

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Prepaid College Board shall use distributions from the endowment

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to provide prepaid postsecondary tuition scholarships to

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economically disadvantaged youth pursuant to s. 1009.984.

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     (d) Appropriations of endowment investment revenues by the

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Legislature to the department shall be deposited into the account

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of the direct-support organization of the Florida Prepaid College

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Board established pursuant s. 1009.983.

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     (e) Notwithstanding s. 216.301 and pursuant to s. 216.351,

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all unencumbered balances of appropriations to the department as

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of June 30 or undisbursed balances as of September 30 shall

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revert to the endowment's principal at the board.

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     Section 2.  This act shall take effect July 1, 2008.