| 1 | A bill to be entitled |
| 2 | An act relating to prepaid college programs; amending s. |
| 3 | 1009.98, F.S.; providing that a purchaser of an advance |
| 4 | payment contract may receive a refund of the unused |
| 5 | portion of the contract under certain circumstances; |
| 6 | providing an effective date. |
| 7 |
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| 8 | Be It Enacted by the Legislature of the State of Florida: |
| 9 |
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| 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 |
| 50 | into pursuant to subsection (9) or s. 1009.983 may receive a |
| 51 | refund equal to the redemption value of the unused portion of |
| 52 | the advance payment contract at a state postsecondary |
| 53 | institution if the refund is used exclusively to fund additional |
| 54 | scholarships purchased pursuant to subsection (9) or s. |
| 55 | 1009.983. |
| 56 | Section 2. This act shall take effect upon becoming a law. |