ENROLLED
       2015 Legislature                    CS for SB 642, 1st Engrossed
       
       
       
       
       
       
                                                              2015642er
    1  
    2         An act relating to individuals with disabilities;
    3         creating s. 1009.985, F.S.; providing a short title;
    4         creating s. 1009.986, F.S.; providing legislative
    5         intent; defining terms; requiring the Florida Prepaid
    6         College Board to establish a direct-support
    7         organization known as “Florida ABLE, Inc.”; specifying
    8         requirements for the registration, organization,
    9         incorporation, and operation of the organization;
   10         requiring the organization to operate under a written
   11         contract with the Florida Prepaid College Board;
   12         specifying provisions that must be included in the
   13         contract; requiring the organization to provide for an
   14         annual financial audit and supplemental data under
   15         certain circumstances; establishing and providing for
   16         the membership of a board of directors for the
   17         organization; providing limits on a director’s
   18         authority; specifying meeting and quorum requirements;
   19         prohibiting compensation for the service of directors
   20         and other specified members; authorizing specified
   21         reimbursement for the travel expenses of directors and
   22         specified members of the organization; authorizing the
   23         organization to use certain services, property, and
   24         facilities of the Florida Prepaid College Board;
   25         requiring the organization to establish and administer
   26         the Florida ABLE program by a specified date;
   27         specifying requirements that must be met before
   28         implementation of the program; requiring a
   29         participation agreement for the program which contains
   30         specified provisions; authorizing other provisions
   31         that may be included in the agreement; providing for
   32         the amendment of the agreement under certain
   33         circumstances; providing for the use of the balance of
   34         an abandoned ABLE account by the organization;
   35         providing that a contract or participation agreement
   36         entered into by the organization or an obligation of
   37         the organization does not constitute a debt or
   38         obligation of the Florida Prepaid College Board or the
   39         state; authorizing the organization to contract with
   40         other states for specified purposes under certain
   41         circumstances; providing for termination of the
   42         program under certain circumstances and for the
   43         disposition of certain assets upon termination;
   44         prohibiting the state from limiting or altering the
   45         specified vested rights of designated beneficiaries
   46         except under specified circumstances; requiring the
   47         organization to establish a comprehensive investment
   48         plan for the program; exempting funds paid into the
   49         program’s trust fund from the claims of specified
   50         creditors; providing for recovery by Medicaid of
   51         certain medical assistance provided to a deceased
   52         designated beneficiary; providing for the distribution
   53         of the balance of a deceased designated beneficiary’s
   54         ABLE account; requiring the organization to assist and
   55         cooperate with the Agency for Health Care
   56         Administration and Medicaid program in other states by
   57         providing specified information; providing that
   58         specified payroll deduction authority applies to the
   59         Florida Prepaid College Board and the organization for
   60         the purpose of administering the program; requiring
   61         the organization to submit certain reports to
   62         specified entities; requiring the Florida Prepaid
   63         College Board to adopt rules; requiring the Agency for
   64         Health Care Administration, the Agency for Persons
   65         with Disabilities, the Department of Children and
   66         Families, and the Department of Education to assist,
   67         cooperate, and coordinate with the organization in the
   68         provision of public information and outreach for the
   69         program; providing that the section is repealed on a
   70         specified date; amending s. 222.22, F.S.; providing
   71         that specified moneys, assets, and income of a
   72         qualified ABLE program, including the Florida ABLE
   73         program, are not subject to attachment, levy,
   74         garnishment, or certain legal process in favor of
   75         certain creditors or claimants; amending s. 1009.971,
   76         F.S.; conforming provisions to changes made by the
   77         act; authorizing the Florida Prepaid College Board to
   78         amend its contracts to provide the organization or
   79         program with contractual services; providing an
   80         appropriation; providing an effective date.
   81          
   82  Be It Enacted by the Legislature of the State of Florida:
   83  
   84         Section 1. Section 1009.985, Florida Statutes, is created
   85  to read:
   86         1009.985 Short title.—Sections 1009.985-1009.988 may be
   87  cited as the “Florida Achieving a Better Life Experience (ABLE)
   88  Act.”
   89         Section 2. Section 1009.986, Florida Statutes, is created
   90  to read:
   91         1009.986 Florida ABLE program.—
   92         (1) LEGISLATIVE INTENT.—It is the intent of the Legislature
   93  to establish a qualified ABLE program in this state which will
   94  encourage and assist the saving of private funds in tax-exempt
   95  accounts in order to pay for the qualified disability expenses
   96  of eligible individuals with disabilities. The Legislature
   97  intends that the qualified ABLE program be implemented in a
   98  manner that is consistent with federal law authorizing the
   99  program and that maximizes program efficiency and effectiveness.
  100         (2) DEFINITIONS.—As used in ss. 1009.986-1009.988, the
  101  term:
  102         (a)“ABLE account” means an account established and
  103  maintained under the Florida ABLE program.
  104         (b)“Contracting state” means a state that has entered into
  105  a contract with Florida ABLE, Inc., to provide residents of
  106  Florida or that state with access to a qualified ABLE program.
  107         (c)“Designated beneficiary” means the eligible individual
  108  who established an ABLE account or the eligible individual to
  109  whom an ABLE account was transferred.
  110         (d)“Eligible individual” has the same meaning as provided
  111  in s. 529A of the Internal Revenue Code.
  112         (e)“Florida ABLE program” means the qualified ABLE program
  113  established and maintained under this section by Florida ABLE,
  114  Inc.
  115         (f)“Internal Revenue Code” means the United States
  116  Internal Revenue Code of 1986, as defined in s. 220.03(1), and
  117  regulations adopted pursuant thereto.
  118         (g)“Participation agreement” means the agreement between
  119  Florida ABLE, Inc., and a participant in the Florida ABLE
  120  program.
  121         (h) “Qualified ABLE program” means the program authorized
  122  under s. 529A of the Internal Revenue Code which may be
  123  established by a state or agency, or instrumentality thereof, to
  124  allow a person to make contributions for a taxable year to an
  125  ABLE account established for the purpose of meeting the
  126  qualified disability expenses of the designated beneficiary of
  127  the ABLE account.
  128         (i) “Qualified disability expense” has the same meaning as
  129  provided in s. 529A of the Internal Revenue Code.
  130         (3) DIRECT-SUPPORT ORGANIZATION; FLORIDA ABLE, INC.
  131         (a)The Florida Prepaid College Board shall establish a
  132  direct-support organization to be known as “Florida ABLE, Inc.,”
  133  which is:
  134         1. A Florida not-for-profit corporation registered,
  135  incorporated, organized, and operated in compliance with chapter
  136  617.
  137         2. Organized and operated to receive, hold, invest, and
  138  administer property and to make expenditures for the benefit of
  139  the Florida ABLE program.
  140         (b) Florida ABLE, Inc., shall operate under a written
  141  contract with the Florida Prepaid College Board. The contract
  142  must include, but is not limited to, provisions that require:
  143         1. The articles of incorporation and bylaws of Florida
  144  ABLE, Inc., to be approved by the Florida Prepaid College Board.
  145         2.Florida ABLE, Inc., to submit an annual budget for
  146  approval by the Florida Prepaid College Board. The budget must
  147  comply with rules adopted by the Florida Prepaid College Board.
  148         3.Florida ABLE, Inc., to pay reasonable consideration to
  149  the Florida Prepaid College Board for products or services
  150  provided directly or indirectly by the Florida Prepaid College
  151  Board.
  152         4. The Florida Prepaid College Board to solicit proposals,
  153  to contract or subcontract, or to amend contractual service
  154  agreements of the Florida Prepaid College Board for the benefit
  155  of Florida ABLE, Inc.
  156         5. The Florida Prepaid College Board to maintain the
  157  website of Florida ABLE, Inc.
  158         6. The Florida Prepaid College Board to annually certify
  159  that Florida ABLE, Inc., is complying with the terms of the
  160  contract and acting in a manner consistent with this section and
  161  in the best interest of the state. The certification must be
  162  reported in the official minutes of a meeting of the Florida
  163  Prepaid College Board.
  164         7. The disclosure of material provisions in the contract
  165  and of the distinction between the Florida Prepaid College Board
  166  and Florida ABLE, Inc., to donors of gifts, contributions, or
  167  bequests, and the inclusion of such disclosure on all
  168  promotional and fundraising publications.
  169         8. The fiscal year for Florida ABLE, Inc., to begin on July
  170  1 and end on June 30 of the following year.
  171         (c) Florida ABLE, Inc., shall provide for an annual
  172  financial audit in accordance with s. 215.981. The Florida
  173  Prepaid College Board and the Auditor General may require
  174  Florida ABLE, Inc., or its independent auditor, to provide any
  175  supplemental data relating to the operation of Florida ABLE,
  176  Inc.
  177         (d)1. The board of directors of Florida ABLE, Inc., shall
  178  consist of:
  179         a. The chair of the Florida Prepaid College Board, who
  180  shall serve as the chair of the board of directors of Florida
  181  ABLE, Inc.
  182         b. One individual who possesses knowledge, skill, and
  183  experience in the areas of accounting, risk management, or
  184  investment management, who shall be appointed by the Florida
  185  Prepaid College Board. A current member of the Florida Prepaid
  186  College Board, other than the chair, may be appointed.
  187         c. One individual who possesses knowledge, skill, and
  188  experience in the areas of accounting, risk management, or
  189  investment management, who shall be appointed by the Governor.
  190         d. Two individuals who are advocates of persons with
  191  disabilities, one of whom shall be appointed by the President of
  192  the Senate and one of whom shall be appointed by the Speaker of
  193  the House of Representatives. At least one of the individuals
  194  appointed under this sub-subparagraph must be an advocate of
  195  persons with developmental disabilities, as that term is defined
  196  in s. 393.063.
  197         2.a. The term of the appointee under sub-subparagraph 1.b.
  198  shall be up to 3 years as determined by the Florida Prepaid
  199  College Board. Such appointee may be reappointed.
  200         b. The term of the appointees under sub-subparagraphs 1.c.
  201  and d. shall be 3 years. Such appointees may be reappointed for
  202  up to one consecutive term.
  203         3.Unless authorized by the board of directors of Florida
  204  ABLE, Inc., an individual director has no authority to control
  205  or direct the operations of Florida ABLE, Inc., or the actions
  206  of its officers and employees.
  207         4. The board of directors of Florida ABLE, Inc.:
  208         a. Shall meet at least quarterly and at other times upon
  209  the call of the chair.
  210         b. May use any method of telecommunications to conduct, or
  211  establish a quorum at, its meetings or the meetings of a
  212  subcommittee or other subdivision if the public is given proper
  213  notice of the telecommunications meeting and provided reasonable
  214  access to observe and, if appropriate, to participate.
  215         5.A majority of the total current membership of the board
  216  of directors of Florida ABLE, Inc., constitutes a quorum of the
  217  board.
  218         6.Members of the board of directors of Florida ABLE, Inc.,
  219  and the board’s subcommittees or other subdivisions shall serve
  220  without compensation; however, the members may be reimbursed for
  221  reasonable, necessary, and actual travel expenses pursuant to s.
  222  112.061.
  223         (e) Subject to rule adopted by the Florida Prepaid College
  224  Board, Florida ABLE, Inc., may use property, other than money,
  225  facilities, and personal services of the Florida Prepaid College
  226  Board, provided that Florida ABLE, Inc., offers equal employment
  227  opportunities to all persons regardless of race, color,
  228  religion, sex, age, or national origin. As used in this
  229  paragraph, the term “personal services” means use of the Florida
  230  Prepaid College Board’s full-time and part-time personnel,
  231  payroll processing services, and other services prescribed by
  232  rule of the Florida Prepaid College Board.
  233         (4) FLORIDA ABLE PROGRAM.—
  234         (a) On or before July 1, 2016, Florida ABLE, Inc., shall
  235  establish and administer the Florida ABLE program. Before
  236  implementing the program, Florida ABLE, Inc., must obtain a
  237  written opinion from counsel specializing in:
  238         1. Federal tax matters which indicates that the Florida
  239  ABLE program is designed to comply with s. 529A of the Internal
  240  Revenue Code.
  241         2. Federal securities law which indicates that the Florida
  242  ABLE program and the offering of participation in the program
  243  are designed to comply with applicable federal securities law
  244  and qualify for the available tax exemptions under such law.
  245         (b)The participation agreement must include provisions
  246  specifying that:
  247         1. The participation agreement is only a debt or obligation
  248  of the Florida ABLE program and the Florida ABLE Program Trust
  249  Fund and, as provided under paragraph (f), is not a debt or
  250  obligation of the Florida Prepaid College Board or the state.
  251         2. Participation in the Florida ABLE program does not
  252  guarantee that sufficient funds will be available to cover all
  253  qualified disability expenses for any designated beneficiary and
  254  does not guarantee the receipt or continuation of any product or
  255  service for the designated beneficiary.
  256         3.The designated beneficiary must be a resident of this
  257  state or a resident of a contracting state at the time the ABLE
  258  account is established.
  259         4. The establishment of an ABLE account in violation of
  260  federal law is prohibited.
  261         5.Contributions in excess of the limitations set forth in
  262  s. 529A of the Internal Revenue Code are prohibited.
  263         6. The state is a creditor of ABLE accounts as, and to the
  264  extent, set forth in s. 529A of the Internal Revenue Code.
  265         7. Material misrepresentations by a party to the
  266  participation agreement, other than Florida ABLE, Inc., in the
  267  application for the participation agreement or in any
  268  communication with Florida ABLE, Inc., regarding the Florida
  269  ABLE program may result in the involuntary liquidation of the
  270  ABLE account. If an account is involuntarily liquidated, the
  271  designated beneficiary is entitled to a refund, subject to any
  272  fees or penalties provided by the participation agreement and
  273  the Internal Revenue Code.
  274         (c) The participation agreement may include provisions
  275  specifying:
  276         1. The requirements and applicable restrictions for opening
  277  an ABLE account.
  278         2. The eligibility requirements for a party to a
  279  participation agreement and the rights of the party.
  280         3. The requirements and applicable restrictions for making
  281  contributions to an ABLE account.
  282         4. The requirements and applicable restrictions for
  283  directing the investment of the contributions or balance of the
  284  ABLE account.
  285         5. The administrative fee and other fees and penalties
  286  applicable to an ABLE account.
  287         6. The terms and conditions under which an ABLE account or
  288  participation agreement may be modified, transferred, or
  289  terminated.
  290         7. The disposition of abandoned ABLE accounts.
  291         8. Other terms and conditions determined to be necessary or
  292  proper.
  293         (d) The participation agreement may be amended throughout
  294  its term for purposes that include, but are not limited to,
  295  allowing a participant to increase or decrease the level of
  296  participation and to change designated beneficiaries and other
  297  matters authorized by this section and s. 529A of the Internal
  298  Revenue Code.
  299         (e) If an ABLE account is determined to be abandoned
  300  pursuant to rules adopted by the Florida Prepaid College Board,
  301  Florida ABLE, Inc., may use the balance of the account to
  302  operate the Florida ABLE program.
  303         (f) A contract or participation agreement entered into by
  304  or an obligation of Florida ABLE, Inc., on behalf of and for the
  305  benefit of the Florida ABLE program does not constitute a debt
  306  or obligation of the Florida Prepaid College Board or the state,
  307  but is only a debt or obligation of the Florida ABLE program and
  308  the Florida ABLE Program Trust Fund. The state does not have an
  309  obligation to a designated beneficiary or any other person as a
  310  result of the Florida ABLE program. The obligation of the
  311  Florida ABLE program is limited solely to amounts in the Florida
  312  ABLE Program Trust Fund. All amounts obligated to be paid from
  313  the Florida ABLE Program Trust Fund are limited to the amounts
  314  available for such obligation. The amounts held in the Florida
  315  ABLE program may be disbursed only in accordance with this
  316  section.
  317         (g) Notwithstanding any other provision of law, Florida
  318  ABLE, Inc., may enter into an agreement with a contracting state
  319  which allows Florida ABLE, Inc., to participate under the
  320  design, operation, and rules of the contracting state’s
  321  qualified ABLE program or which allows the contracting state to
  322  participate under the Florida ABLE program.
  323         (h) The Florida ABLE program shall continue in existence
  324  until terminated by law. If the state determines that the
  325  program is financially infeasible, the state may terminate the
  326  program. Upon termination, amounts in the Florida ABLE Program
  327  Trust Fund held for designated beneficiaries shall be returned
  328  in accordance with the participation agreement.
  329         (i) The state pledges to the designated beneficiaries that
  330  the state will not limit or alter their rights under this
  331  section which are vested in the Florida ABLE program until the
  332  program’s obligations are met and discharged. However, this
  333  paragraph does not preclude such limitation or alteration if
  334  adequate provision is made by law for the protection of the
  335  designated beneficiaries pursuant to the obligations of Florida
  336  ABLE, Inc., and does not preclude termination of the Florida
  337  ABLE program if the state determines that the program is not
  338  financially feasible. This pledge and undertaking by the state
  339  may be included in participation agreements.
  340         (5) COMPREHENSIVE INVESTMENT PLAN.—Florida ABLE, Inc.,
  341  shall establish a comprehensive investment plan for the Florida
  342  ABLE program, subject to the approval of the Florida Prepaid
  343  College Board. The comprehensive investment plan must specify
  344  the investment policies to be used by Florida ABLE, Inc., in its
  345  administration of the program. Florida ABLE, Inc., may place
  346  assets of the program in investment products and in such
  347  proportions as may be designated or approved in the
  348  comprehensive investment plan. Such products shall be
  349  underwritten and offered in compliance with the applicable
  350  federal and state laws or regulations or exemptions therefrom. A
  351  designated beneficiary may not direct the investment of any
  352  contributions to the Florida ABLE program, unless specific fund
  353  options are offered by Florida ABLE, Inc. Directors, officers,
  354  and employees of Florida ABLE, Inc., may enter into
  355  participation agreements, notwithstanding their fiduciary
  356  responsibilities or official duties related to the Florida ABLE
  357  program.
  358         (6) EXEMPTION FROM CLAIMS OF CREDITORS.—Moneys paid into or
  359  out of the Florida ABLE Program Trust Fund by or on behalf of a
  360  designated beneficiary are exempt, as provided by s. 222.22,
  361  from all claims of creditors of the designated beneficiary if
  362  the participation agreement has not been terminated. Moneys paid
  363  into the Florida ABLE program and benefits accrued through the
  364  program may not be pledged for the purpose of securing a loan.
  365         (7)MEDICAID RECOVERY; PRIORITY OF DISTRIBUTIONS.—
  366         (a) Upon the death of the designated beneficiary, the
  367  Agency for Health Care Administration and the Medicaid program
  368  for another state may file a claim with the Florida ABLE program
  369  for the total amount of medical assistance provided for the
  370  designated beneficiary under the Medicaid program, less any
  371  premiums paid by or on behalf of the designated beneficiary to a
  372  Medicaid buy-in program. Funds in the ABLE account of the
  373  deceased designated beneficiary must first be distributed for
  374  qualified disability expenses followed by distributions for the
  375  Medicaid claim authorized under this paragraph. Any remaining
  376  amount shall be distributed as provided in the participation
  377  agreement.
  378         (b)Florida ABLE, Inc., shall assist and cooperate with the
  379  Agency for Health Care Administration and Medicaid programs in
  380  other states by providing the agency and programs with the
  381  information needed to accomplish the purpose and objective of
  382  this subsection.
  383         (8) PAYROLL DEDUCTION AUTHORITY.—The payroll deduction
  384  authority provided under s. 1009.975 applies to the Florida
  385  Prepaid College Board and Florida ABLE, Inc., for purposes of
  386  administering this section.
  387         (9) REPORTS.—
  388         (a) On or before November 1, 2015, Florida ABLE, Inc.,
  389  shall prepare a report on the status of the establishment of the
  390  Florida ABLE program by Florida ABLE, Inc. The report must also
  391  include, if warranted, recommendations for statutory changes to
  392  enhance the effectiveness and efficiency of the program. Florida
  393  ABLE, Inc., shall submit copies of the report to the Governor,
  394  the President of the Senate, and the Speaker of the House of
  395  Representatives.
  396         (b) On or before March 31 of each year, Florida ABLE, Inc.,
  397  shall prepare or cause to be prepared a report setting forth in
  398  appropriate detail an accounting of the Florida ABLE program
  399  which includes a description of the financial condition of the
  400  program at the close of the fiscal year. Florida ABLE, Inc.,
  401  shall submit copies of the report to the Governor, the President
  402  of the Senate, the Speaker of the House of Representatives, and
  403  the minority leaders of the Senate and the House of
  404  Representatives and shall make the report available to each
  405  designated beneficiary. The accounts of the Florida ABLE program
  406  are subject to annual audit by the Auditor General.
  407         (10) RULES.The Florida Prepaid College Board shall adopt
  408  rules to administer this section. Such rules must include, but
  409  are not limited to:
  410         (a) Specifying the procedures by which Florida ABLE, Inc.,
  411  shall be governed and operate, including requirements for the
  412  budget of Florida ABLE, Inc., and conditions with which Florida
  413  ABLE, Inc., must comply to use property, facilities, or personal
  414  services of the Florida Prepaid College Board.
  415         (b) The procedures for determining that an ABLE account has
  416  been abandoned.
  417         (c) Adoption of provisions determined necessary by the
  418  Florida Prepaid College Board for the Florida ABLE program to
  419  retain its status as a qualified ABLE program or the tax-exempt
  420  status or other similar status of the program or its
  421  participants under the Internal Revenue Code. Florida ABLE,
  422  Inc., shall inform participants in the Florida ABLE program of
  423  changes to the tax or securities status of their interests in
  424  the ABLE program and participation agreements.
  425         (11) STATE OUTREACH PARTNERS.—The Agency for Health Care
  426  Administration, the Agency for Persons with Disabilities, the
  427  Department of Children and Families, and the Department of
  428  Education shall assist, cooperate, and coordinate with Florida
  429  ABLE, Inc., in the provision of public information and outreach
  430  for the Florida ABLE program.
  431         (12) REPEAL.—In accordance with s. 20.058, this section is
  432  repealed October 1, 2020, unless reviewed and saved from repeal
  433  by the Legislature.
  434         Section 3. Subsection (5) is added to section 222.22,
  435  Florida Statutes, to read:
  436         222.22 Exemption of assets in qualified tuition programs,
  437  medical savings accounts, Coverdell education savings accounts,
  438  and hurricane savings accounts from legal process.—
  439         (5) Except as provided in s. 1009.986(7), as it relates to
  440  any validly existing qualified ABLE program authorized by s.
  441  529A of the Internal Revenue Code, including, but not limited
  442  to, the Florida ABLE program participation agreements under s.
  443  1009.986, moneys paid into or out of such a program, and the
  444  income and assets of such a program, are not liable to
  445  attachment, levy, garnishment, or legal process in this state in
  446  favor of any creditor of or claimant against any designated
  447  beneficiary or other program participant.
  448         Section 4. Subsections (1) and (4) of section 1009.971,
  449  Florida Statutes, are amended to read:
  450         1009.971 Florida Prepaid College Board.—
  451         (1) FLORIDA PREPAID COLLEGE BOARD; CREATION.—The Florida
  452  Prepaid College Board is hereby created as a body corporate with
  453  all the powers of a body corporate for the purposes delineated
  454  in this section. The board shall administer the prepaid program
  455  and the savings program, and shall perform essential
  456  governmental functions as provided in ss. 1009.97-1009.988 ss.
  457  1009.97-1009.984. For the purposes of s. 6, Art. IV of the State
  458  Constitution, the board shall be assigned to and
  459  administratively housed within the State Board of
  460  Administration, but it shall independently exercise the powers
  461  and duties specified in ss. 1009.97-1009.988 ss. 1009.97
  462  1009.984.
  463         (4) FLORIDA PREPAID COLLEGE BOARD; POWERS AND DUTIES.—The
  464  board shall have the powers and duties necessary or proper to
  465  carry out the provisions of ss. 1009.97-1009.988 ss. 1009.97
  466  1009.984, including, but not limited to, the power and duty to:
  467         (a) Appoint an executive director to serve as the chief
  468  administrative and operational officer of the board and to
  469  perform other duties assigned to him or her by the board.
  470         (b) Adopt an official seal and rules.
  471         (c) Sue and be sued.
  472         (d) Make and execute contracts and other necessary
  473  instruments.
  474         (e) Establish agreements or other transactions with
  475  federal, state, and local agencies, including state universities
  476  and Florida College System institutions.
  477         (f) Administer the trust fund in a manner that is
  478  sufficiently actuarially sound to defray the obligations of the
  479  prepaid program and the savings program, considering the
  480  separate purposes and objectives of each program. The board
  481  shall annually evaluate or cause to be evaluated the actuarial
  482  soundness of the prepaid fund. If the board perceives a need for
  483  additional assets in order to preserve actuarial soundness of
  484  the prepaid program, the board may adjust the terms of
  485  subsequent advance payment contracts to ensure such soundness.
  486         (g) Invest funds not required for immediate disbursement.
  487         (h) Appear in its own behalf before boards, commissions, or
  488  other governmental agencies.
  489         (i) Hold, buy, and sell any instruments, obligations,
  490  securities, and property determined appropriate by the board.
  491         (j) Require a reasonable length of state residence for
  492  qualified beneficiaries.
  493         (k) Segregate contributions and payments to the trust fund
  494  into the appropriate fund.
  495         (l) Procure and contract for goods and services, employ
  496  personnel, and engage the services of private consultants,
  497  actuaries, managers, legal counsel, and auditors in a manner
  498  determined to be necessary and appropriate by the board.
  499         (m) Solicit and accept gifts, grants, loans, and other aids
  500  from any source or participate in any other way in any
  501  government program to carry out the purposes of ss. 1009.97
  502  1009.988 ss. 1009.97-1009.984.
  503         (n) Require and collect administrative fees and charges in
  504  connection with any transaction and impose reasonable penalties,
  505  including default, for delinquent payments or for entering into
  506  an advance payment contract or a participation agreement on a
  507  fraudulent basis.
  508         (o) Procure insurance against any loss in connection with
  509  the property, assets, and activities of the trust fund or the
  510  board.
  511         (p) Impose reasonable time limits on use of the benefits
  512  provided by the prepaid program or savings program. However, any
  513  such limitations shall be specified within the advance payment
  514  contract or the participation agreement, respectively.
  515         (q) Delineate the terms and conditions under which payments
  516  may be withdrawn from the trust fund and impose reasonable fees
  517  and charges for such withdrawal. Such terms and conditions shall
  518  be specified within the advance payment contract or the
  519  participation agreement.
  520         (r) Provide for the receipt of contributions in lump sums
  521  or installment payments.
  522         (s) Require that purchasers of advance payment contracts or
  523  benefactors of participation agreements verify, under oath, any
  524  requests for contract conversions, substitutions, transfers,
  525  cancellations, refund requests, or contract changes of any
  526  nature. Verification shall be accomplished as authorized and
  527  provided for in s. 92.525(1)(a).
  528         (t) Delegate responsibility for administration of one or
  529  both of the comprehensive investment plans required in s.
  530  1009.973 to persons the board determines to be qualified. Such
  531  persons shall be compensated by the board.
  532         (u) Endorse insurance coverage written exclusively for the
  533  purpose of protecting advance payment contracts, and
  534  participation agreements, and the purchasers, benefactors, and
  535  beneficiaries thereof, including group life policies and group
  536  disability policies, which are exempt from the provisions of
  537  part V of chapter 627.
  538         (v) Form strategic alliances with public and private
  539  entities to provide benefits to the prepaid program, savings
  540  program, and participants of either or both programs.
  541         (w) Solicit proposals and contract, pursuant to s. 287.057,
  542  for the marketing of the prepaid program or the savings program,
  543  or both together. Any materials produced for the purpose of
  544  marketing the prepaid program or the savings program shall be
  545  submitted to the board for review. No such materials shall be
  546  made available to the public before the materials are approved
  547  by the board. Any educational institution may distribute
  548  marketing materials produced for the prepaid program or the
  549  savings program; however, all such materials shall be approved
  550  by the board prior to distribution. Neither the state nor the
  551  board shall be liable for misrepresentation of the prepaid
  552  program or the savings program by a marketing agent.
  553         (x) Establish other policies, procedures, and criteria to
  554  implement and administer the provisions of ss. 1009.97-1009.988
  555  ss. 1009.97-1009.984.
  556         (y) Adopt procedures to govern contract dispute proceedings
  557  between the board and its vendors.
  558         (z) Amend board contracts to provide Florida ABLE, Inc., or
  559  the Florida ABLE program with contractual services.
  560         Section 5. For the 2015-2016 fiscal year, the sums of
  561  $2,166,000 in recurring and $1,220,000 in nonrecurring funds
  562  from the General Revenue Fund are appropriated to the Department
  563  of Education for transfer to the Florida ABLE Program Trust
  564  Fund, for the purpose of funding the costs for startup,
  565  staffing, market research, marketing, banking services,
  566  investment custodian and consultant services, records
  567  administration services, and general operations of Florida ABLE,
  568  Inc. The funds appropriated in this section shall be placed in
  569  reserve. Florida ABLE, Inc., through the Department of
  570  Education, may submit a budget amendment for release of such
  571  funds pursuant to chapter 216, Florida Statutes, which must
  572  include an itemized budget for the use of such funds by Florida
  573  ABLE, Inc.
  574         Section 6. This act shall take effect upon becoming a law.