Florida Senate - 2009                                    SB 1426
       
       
       
       By Senator Wise
       
       
       
       
       5-00897B-09                                           20091426__
    1                        A bill to be entitled                      
    2         An act relating to prepaid college programs; amending
    3         s. 1009.98, F.S.; providing that a purchaser of an
    4         advance payment contract may receive a refund of the
    5         unused portion of the contract under certain
    6         circumstances; providing an effective date.
    7         
    8  Be It Enacted by the Legislature of the State of Florida:
    9         
   10         Section 1. Subsection (5) of section 1009.98, Florida
   11  Statutes, is amended to read:
   12         1009.98 Stanley G. Tate Florida Prepaid College Program.—
   13         (5) REFUNDS.—
   14         (a) A No refund may not shall exceed the amount paid into
   15  the fund by the purchaser except as provided in paragraphs (b),
   16  and (c), and (f).
   17         (b) If the beneficiary is awarded a scholarship, the terms
   18  of which cover the benefits included in the advance payment
   19  contracts, moneys paid for the purchase of the advance payment
   20  contracts shall be refunded to the purchaser in semester
   21  installments coinciding with the tuition by the beneficiary in
   22  an amount which, in total, does not exceed the redemption value
   23  of the advance payment contract at a state postsecondary
   24  institution.
   25         (c) In the event of the death or total disability of the
   26  beneficiary, moneys paid for the purchase of advance payment
   27  contracts shall be refunded to the purchaser in an amount not to
   28  exceed the redemption value of the advance payment contract at a
   29  state postsecondary institution.
   30         (d) If an advance payment contract is converted from one
   31  registration plan to a plan of lesser value, the amount refunded
   32  may shall not exceed the difference between the amount paid for
   33  the original contract and the amount that would have been paid
   34  for the contract to which the plan is converted had the
   35  converted plan been purchased under the same payment plan at the
   36  time the original advance payment contract was executed.
   37         (e) A No refund may not shall be authorized through an
   38  advance payment contract for any school year partially attended
   39  but not completed. For purposes of this section, a school year
   40  partially attended but not completed shall mean any one semester
   41  whereby the student is still enrolled at the conclusion of the
   42  official drop-add period but withdraws before the end of such
   43  semester. If a beneficiary does not complete a community college
   44  plan or university plan for reasons other than specified in
   45  paragraph (c), the purchaser shall receive a refund of the
   46  amount paid into the fund for the remaining unattended years of
   47  the advance payment contract pursuant to rules promulgated by
   48  the board.
   49         (f) A purchaser of an advance payment contract entered into
   50  pursuant to subsection (9) or s. 1009.983 may receive a refund
   51  equal to the redemption value of the unused portion of the
   52  advance payment contract at a state postsecondary institution if
   53  the refund is used exclusively to fund additional scholarships
   54  purchased pursuant to subsection (9) or s. 1009.983.
   55         Section 2. This act shall take effect upon becoming a law.