Florida Statutes
Chapter 1009, Part IV - EDUCATIONAL SCHOLARSHIPS, FEES, AND FINANCIAL ASSISTANCE
1009.97 General Provisions
(1) Legislative Finding; Educational Opportunity
(2) Legislative Intent
(3) Definitions
1009.971 Florida Prepaid
College Board
(1) Florida Prepaid College
Board; Creation
(2) Florida Prepaid
College Board; Membership
(3) Florida
Prepaid College Board; Elections; Meetings
(4) Florida Prepaid
College Board; Powers and Duties
(5) Florida
Prepaid College Board; Contractual Services
(6)
Qualified Tuition Program Status
1009.972 Florida
Prepaid College Trust Fund
1009.973 Comprehensive
Investment Plans
1009.974 Exemption
from Claims of Creditors
1009.975 Payroll Deduction
Authority
1009.976 Annual Report
1009.98 Stanley G.
Tate Florida Prepaid College Program
(1) Stanley G. Tate
Florida Prepaid College Program; Creation
(2) Prepaid College Plans
(3) Transfer of Benefits
to Private and Out-of-State Colleges and Universities and to Career Centers
(4) Advance Payment Contracts
(5) Refunds
(6) Confidentiality
of Account Information
(7) Obligations of
Board
(8) Program Termination
(9) Scholarships
(10) Payments On Behalf
of Qualified Beneficiaries
1009.981 Florida College
Savings Program
(1) Florida College Savings
Program
(2) Participation
Agreements
(3) Distributions
for Qualified Higher Education Expenses
(4) Refunds
(5) Material Misrepresentation;
Penalty
(6) Confidentiality
of Account Information
(7) Obligations of
Board
(8) Program Termination
(9) State Pledge
1009.982 Disclaimer
1009.983 Direct-Support Organization;
Authority
1009.984 Florida Prepaid Tuition Scholarship
Program
(1) LEGISLATIVE FINDING; EDUCATIONAL OPPORTUNITY.—The
Legislature recognizes that educational opportunity at the postsecondary level is
a critical state interest and is best ensured through the provision of postsecondary
institutions that are geographically and financially accessible, that affordability
and accessibility of higher education are essential to the welfare and well-being
of the residents of the state and are a critical state interest, and that promoting
and enhancing financial access to postsecondary institutions serve a legitimate
public purpose.
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(2) LEGISLATIVE INTENT.—It is the intent of the
Legislature that a prepaid program be established through which many of the costs
associated with postsecondary attendance may be paid in advance and fixed at a guaranteed
level for the duration of undergraduate enrollment and that this program fosters
timely financial planning for postsecondary attendance and to encourage employer
participation in such planning through program contributions on behalf of employees
and the dependents of employees. It is further the intent of the Legislature that
a savings program be established as a supplement and alternative to the prepaid
program to allow persons to make contributions to a trust account to meet some or
all of the qualified higher education expenses of a designated beneficiary, consistent
with federal law authorizing such programs, but without a guarantee by the state
that such contributions, together with the investment return on such contributions,
if any, will be adequate to pay for qualified higher education expenses, to enable
participants to save for qualified higher education expenses, and to provide a choice
to persons who determine that the overall educational needs of their families are
best suited to a savings program or who wish to save to meet postsecondary educational
needs beyond the traditional 4-year curriculum. Finally, the Legislature intends
that the prepaid program and the savings program be conducted in a manner to maximize
program efficiency and effectiveness.
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(3) DEFINITIONS.— As used in ss. 1009.97-1009.984, the
term:
(a) "Advance payment contract" means a contract entered into by the board and a
purchaser pursuant to s. 1009.98.
(b) “Board” means the Florida Prepaid College Board.
(c) “Trust fund” means the Florida Prepaid College Trust Fund.
(d) “Prepaid program” means the Stanley G. Tate Florida Prepaid College Program
established pursuant to s. 1009.98.
(e) “Purchaser” means a person who makes or is obligated to make advance registration
or dormitory residence payments in accordance with an advance payment contract.
(f) “Qualified beneficiary” means:
1. A resident of this state at the time a purchaser enters into an advance payment
contract on behalf of the resident;
2. A nonresident who is the child of a noncustodial parent who is a resident of
this state at the time that such parent enters into an advance payment contract
on behalf of the child; or
3. For purposes of advance payment contracts entered into pursuant to s. 1009.983,
a graduate of an accredited high school in this state who is a resident of this
state at the time he or she is designated to receive the benefits of the advance
payment contract.
(g) “Registration fee” means tuition fee, financial aid fee, building fee, and Capital
Improvement Trust Fund fee.
(h) “State postsecondary institution” means any Florida College System institution
or state university.
(i) “Benefactor” means any person making a deposit, payment, contribution, gift,
or other expenditure into the savings program.
(j) “Designated beneficiary” means:
1. Any individual designated in the participation agreement;
2. Any individual defined in s. 152(a)(1)-(8) of the Internal Revenue Code; or
3. Any individual receiving a scholarship from interests in the program purchased
by a state or local government or an organization described in s. 501(c)(3) of the
Internal Revenue Code.
(k) “Eligible educational institution” means an institution of higher education
that qualifies under s. 529 of the Internal Revenue Code as an eligible educational
institution.
(l) “Internal Revenue Code” means the Internal Revenue Code of 1986, as defined
in s. 220.03(1), and regulations adopted pursuant thereto.
(m) “Participation agreement” means an agreement between the board and a benefactor
for participation in the savings program for a designated beneficiary.
(n) “Savings program” means the Florida College Savings Program established pursuant
to s. 1009.981.
(o) “Qualified higher education expenses” means higher education expenses permitted
under s. 529 of the Internal Revenue Code and required for the enrollment or attendance
of a designated beneficiary at an eligible educational institution, including undergraduate
and graduate schools, and any other higher education expenses that are permitted
under s. 529 of the Internal Revenue Code.
(p) “Prepaid fund” means the fund within the trust fund into which moneys belonging
to the prepaid program are deposited and held.
(q) “Savings fund” means the fund within the trust fund into which moneys belonging
to the savings program are deposited and held.
History.—s. 481, ch. 2002-387; s. 1, ch. 2006-303; s. 145, ch. 2011-5.
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(1) FLORIDA PREPAID COLLEGE
BOARD; CREATION.—The Florida Prepaid College Board is hereby created as a body corporate
with all the powers of a body corporate for the purposes delineated in this section.
The board shall administer the prepaid program and the savings program, and shall
perform essential governmental functions as provided in ss. 1009.97-1009.984. For
the purposes of s. 6, Art. IV of the State Constitution, the board shall be assigned
to and administratively housed within the State Board of Administration, but it
shall independently exercise the powers and duties specified in ss. 1009.97-1009.984.
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(2) FLORIDA PREPAID COLLEGE
BOARD; MEMBERSHIP.—The board shall consist of seven members to be composed of the
Attorney General, the Chief Financial Officer, the Chancellor of the State University
System, the 1Deputy Commissioner of Community Colleges, and three members appointed
by the Governor and subject to confirmation by the Senate. Each member appointed
by the Governor shall possess knowledge, skill, and experience in the areas of accounting,
actuary, risk management, or investment management. Each member of the board not
appointed by the Governor may name a designee to serve on the board on behalf of
the member; however, any designee so named shall meet the qualifications required
of gubernatorial appointees to the board. Members appointed by the Governor shall
serve terms of 3 years. Any person appointed to fill a vacancy on the board shall
be appointed in a like manner and shall serve for only the unexpired term. Any member
shall be eligible for reappointment and shall serve until a successor qualifies.
Members of the board shall serve without compensation but shall be reimbursed for
per diem and travel in accordance with s. 112.061. Each member of the board shall
file a full and public disclosure of his or her financial interests pursuant to
s. 8, Art. II of the State Constitution and corresponding statute.
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(3) FLORIDA PREPAID
COLLEGE BOARD; ELECTIONS; MEETINGS.—The board shall annually elect a board member
to serve as chair and a board member to serve as vice chair and shall designate
a secretary-treasurer who need not be a member of the board. The secretary-treasurer
shall keep a record of the proceedings of the board and shall be the custodian of
all printed material filed with or by the board and of its official seal. Notwithstanding
the existence of vacancies on the board, a majority of the members shall constitute
a quorum. The board shall take no official action in the absence of a quorum. The
board shall meet, at a minimum, on a quarterly basis at the call of the chair.
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(4) FLORIDA PREPAID COLLEGE
BOARD; POWERS AND DUTIES.—The board shall have the powers and duties necessary or
proper to carry out the provisions of ss. 1009.97-1009.984, including, but not limited
to, the power and duty to:
(a) Appoint an executive director to serve as the chief administrative and operational
officer of the board and to perform other duties assigned to him or her by the board.
(b) Adopt an official seal and rules.
(c) Sue and be sued.
(d) Make and execute contracts and other necessary instruments.
(e) Establish agreements or other transactions with federal, state, and local agencies,
including state universities and Florida College System institutions.
(f) Administer the trust fund in a manner that is sufficiently actuarially sound
to defray the obligations of the prepaid program and the savings program, considering
the separate purposes and objectives of each program. The board shall annually evaluate
or cause to be evaluated the actuarial soundness of the prepaid fund. If the board
perceives a need for additional assets in order to preserve actuarial soundness
of the prepaid program, the board may adjust the terms of subsequent advance payment
contracts to ensure such soundness.
(g) Invest funds not required for immediate disbursement.
(h) Appear in its own behalf before boards, commissions, or other governmental agencies.
(i) Hold, buy, and sell any instruments, obligations, securities, and property determined
appropriate by the board.
(j) Require a reasonable length of state residence for qualified beneficiaries.
(k) Segregate contributions and payments to the trust fund into the appropriate
fund.
(l) Procure and contract for goods and services, employ personnel, and engage the
services of private consultants, actuaries, managers, legal counsel, and auditors
in a manner determined to be necessary and appropriate by the board.
(m) Solicit and accept gifts, grants, loans, and other aids from any source or participate
in any other way in any government program to carry out the purposes of ss. 1009.97-1009.984.
(n) Require and collect administrative fees and charges in connection with any transaction
and impose reasonable penalties, including default, for delinquent payments or for
entering into an advance payment contract or a participation agreement on a fraudulent
basis.
(o) Procure insurance against any loss in connection with the property, assets,
and activities of the trust fund or the board.
(p) Impose reasonable time limits on use of the benefits provided by the prepaid
program or savings program. However, any such limitations shall be specified within
the advance payment contract or the participation agreement, respectively.
(q) Delineate the terms and conditions under which payments may be withdrawn from
the trust fund and impose reasonable fees and charges for such withdrawal. Such
terms and conditions shall be specified within the advance payment contract or the
participation agreement.
(r) Provide for the receipt of contributions in lump sums or installment payments.
(s) Require that purchasers of advance payment contracts or benefactors of participation
agreements verify, under oath, any requests for contract conversions, substitutions,
transfers, cancellations, refund requests, or contract changes of any nature. Verification
shall be accomplished as authorized and provided for in s. 92.525(1)(a).
(t) Delegate responsibility for administration of one or both of the comprehensive
investment plans required in s. 1009.973 to persons the board determines to be qualified.
Such persons shall be compensated by the board.
(u) Endorse insurance coverage written exclusively for the purpose of protecting
advance payment contracts, and participation agreements, and the purchasers, benefactors,
and beneficiaries thereof, including group life policies and group disability policies,
which are exempt from the provisions of part V of chapter 627.
(v) Form strategic alliances with public and private entities to provide benefits
to the prepaid program, savings program, and participants of either or both programs.
(w) Solicit proposals and contract, pursuant to s. 287.057, for the marketing of
the prepaid program or the savings program, or both together. Any materials produced
for the purpose of marketing the prepaid program or the savings program shall be
submitted to the board for review. No such materials shall be made available to
the public before the materials are approved by the board. Any educational institution
may distribute marketing materials produced for the prepaid program or the savings
program; however, all such materials shall be approved by the board prior to distribution.
Neither the state nor the board shall be liable for misrepresentation of the prepaid
program or the savings program by a marketing agent.
(x) Establish other policies, procedures, and criteria to implement and administer
the provisions of ss. 1009.97-1009.984.
(y) Adopt procedures to govern contract dispute proceedings between the board and
its vendors.
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(5) FLORIDA PREPAID
COLLEGE BOARD; CONTRACTUAL SERVICES.— The board shall solicit proposals and contract,
pursuant to s. 287.057, for:
(a) The services of records administrators.
(b) Investment consultants to review the performance of the board’s investment managers
and advise the board on investment management and performance and investment policy,
including the contents of the comprehensive investment plans.
(c) Trustee services firms to provide trustee and related services to the board.
The trustee services firm shall agree to meet the obligations of the board to qualified
beneficiaries if moneys in the fund fail to offset the obligations of the board
as a result of imprudent selection or supervision of investment programs by such
firm.
(d) Investment managers to provide investment portfolios for the prepaid program
or the savings program. Investment managers shall be limited to authorized insurers
as defined in s. 624.09, banks as defined in s. 658.12, associations as defined
in s. 665.012, authorized Securities and Exchange Commission investment advisers,
and investment companies as defined in the Investment Company Act of 1940. All investment
managers shall have their principal place of business and corporate charter located
and registered in the United States. In addition, each investment manager shall
agree to meet the obligations of the board to qualified beneficiaries if moneys
in the fund fail to offset the obligations of the board as a result of imprudent
investing by such provider. Each authorized insurer shall evidence superior performance
overall on an acceptable level of surety in meeting its obligations to its policyholders
and other contractual obligations. Only qualified public depositories approved by
the Chief Financial Officer shall be eligible for board consideration. Each investment
company shall provide investment plans as specified within the request for proposals.
The goals of the board in procuring such services shall be to provide all purchasers
and benefactors with the most secure, well-diversified, and beneficially administered
prepaid program or savings program possible, to allow all qualified firms interested
in providing such services equal consideration, and to provide such services to
the state at no cost and to the purchasers and benefactors at the lowest cost possible.
Evaluations of proposals submitted pursuant to this subsection shall include, but
not be limited to, fees and other costs that are charged to purchasers or benefactors
that affect account values, or that impact the operational costs of the prepaid
program or the savings program; past experience and past performance in providing
the required services; financial history and current financial strength and capital
adequacy to provide the required services; and capabilities and experience of the
proposed personnel that will provide the required services.
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(6)
QUALIFIED TUITION PROGRAM STATUS.— Notwithstanding any other provision of ss. 1009.97-1009.984,
the board may adopt rules necessary for the prepaid program and the savings program
each to retain its status as a “qualified tuition program” in order to maintain
its tax-exempt status or other similar status of the program, purchasers, and qualified
beneficiaries under the Internal Revenue Code. The board shall inform participants
in the prepaid program and the savings program of changes to the tax or securities
status of advance purchase contracts and participation agreements.
History.—s. 482, ch. 2002-387; s. 1964, ch. 2003-261; s. 141, ch. 2007-217; s. 146,
ch. 2011-5.
Note.—This position is apparently now the “Deputy Commissioner” or “Chancellor”
of the Division of Florida Colleges per s. 20.15(3)(a) and (4).
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(1) There is created within the State Board of Administration the Florida Prepaid
College Trust Fund. The trust fund shall be segregated into two separate funds,
the prepaid fund and the savings fund.
(2) The prepaid fund shall consist of state appropriations, moneys acquired from
other governmental or private sources for the prepaid program, and moneys remitted
in accordance with advance payment contracts. Dividends, interest, and gains accruing
to the prepaid fund shall increase the total funds available for the prepaid program.
If dividends, interest, and gains for the prepaid fund exceed the amount necessary
for program administration and disbursements, the board may designate an additional
percentage of the prepaid fund to serve as a contingency fund.
(3) The savings fund shall consist of appropriations, moneys acquired from other
governmental or private sources for the savings program, and moneys remitted in
accordance with participation agreements. The amounts on deposit in the savings
fund shall remain therein and shall be available solely for carrying out the purposes
of the savings program.
(4) Any balance contained within the trust fund, and within each fund in the trust
fund, at the end of a fiscal year shall remain therein and shall be available for
carrying out the purposes of each respective program and the direct-support organization
established pursuant to s. 1009.983. Moneys contained within the trust fund shall
be exempt from the investment requirements of s. 17.57. All funds deposited in the
prepaid fund may be invested pursuant to s. 215.47. Any funds of a direct-support
organization created pursuant to s. 1009.983 shall be exempt from the provisions
of this section.
(5) Notwithstanding chapter 717, funds associated with terminated advance payment
contracts pursuant to s. 1009.98(4)(k) and canceled contracts for which no refunds
have been claimed shall be retained by the board. The board shall establish procedures
for notifying purchasers who subsequently cancel their advance payment contracts
of any unclaimed refund and shall establish a time period after which no refund
may be claimed by a purchaser who canceled a contract. The board may transfer funds
retained from such terminated advance payment contracts and canceled contracts to
the Florida Prepaid Tuition Scholarship Program to provide matching funds for prepaid
tuition scholarships for economically disadvantaged youth who remain drug free and
crime free. In addition, such funds may be used for any other scholarship programs
approved by the board under s. 1009.983(8)(b), provided that any matching funds
are obtained solely from the private sector.
(6) The assets of the prepaid fund and the savings fund shall be maintained, invested,
and expended solely for the purposes of the prepaid program and the savings program,
respectively, and shall not be loaned, transferred, or otherwise used by the state
for any purpose other than the purposes of ss. 1009.97-1009.984. This subsection
shall not be construed to prohibit the board from investing in, by purchase or otherwise,
bonds, notes, or other obligations of the state or an agency or instrumentality
of the state. Unless otherwise specified by the board, assets of the prepaid fund
and the savings fund shall be expended in the following order of priority:
(a) To make payments to state postsecondary institutions on behalf of qualified
beneficiaries or designated beneficiaries.
(b) To make refunds upon termination of advance payment contracts or participation
agreements.
(c) To pay the costs of administration and operations for the prepaid program and
the savings program.
History.—s. 483, ch. 2002-387; s. 1965, ch. 2003-261; s. 2, ch. 2006-303.
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The Florida Prepaid College Board shall establish separate comprehensive investment
plans for the prepaid program and for the savings program, each subject to the approval
of the State Board of Administration. Each comprehensive investment plan shall specify
the investment policies to be utilized by the board in its administration of each
respective program. The board may place assets of each program in investment products
pursuant to the comprehensive investment plan for each respective program and in
such proportions as may be designated or approved under the plan for each respective
program. Such products shall be underwritten and offered in compliance with the
applicable federal and state laws, regulations, and rules by persons authorized
by applicable federal and state authorities. A purchaser may not direct the investment
of his or her contribution to the prepaid program. A benefactor or designated beneficiary
may not direct the investment of any contributions to the savings program other
than the specific fund options provided by the board, if any. Board members and
employees of the board are not prohibited from purchasing advance payment contracts
or entering into participation agreements by virtue of their fiduciary responsibilities
as members of the board or official duties as employees of the board.
History.—s. 484, ch. 2002-387.
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Moneys paid into or out of the trust fund by or on behalf of a purchaser or qualified
beneficiary of an advance payment contract or benefactor or designated beneficiary
of a participation agreement are exempt, as provided by s. 222.22, from all claims
of creditors of the purchaser or the qualified beneficiary of an advance payment
contract or the benefactor or designated beneficiary of a participation agreement,
respectively, provided that the advance payment contract or participation agreement
has not been terminated. Neither moneys paid into the prepaid program or savings
program nor benefits accrued through the prepaid program or savings program may
be pledged for the purpose of securing a loan.
History.—s. 485, ch. 2002-387.
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The state or any state agency, county, municipality, or other political subdivision
may, by contract or collective bargaining agreement, agree with any employee to
remit payments toward advance payment contracts or participation agreements through
payroll deductions made by the appropriate officer or officers of the state, state
agency, county, municipality, or political subdivision. Such payments shall be held
and administered in accordance with ss. 1009.97-1009.984.
History.—s. 486, ch. 2002-387.
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On or before March 31 of each year, the Florida Prepaid College Board shall prepare
or cause to be prepared separate reports setting forth in appropriate detail an
accounting of the prepaid program and the savings program which include a description
of the financial condition of each respective program at the close of the fiscal
year. The board shall submit copies of the reports to the Governor, the President
of the Senate, the Speaker of the House of Representatives, and the minority leaders
of the House and Senate and shall make the report for the prepaid program available
to each purchaser and the report for the savings program available to each benefactor
and designated beneficiary. The accounts of the fund for the prepaid program and
the savings program shall be subject to annual audits by the Auditor General.
History.— s. 487, ch. 2002-387.
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(1) STANLEY G. TATE FLORIDA
PREPAID COLLEGE PROGRAM; CREATION.— There is created the Stanley G. Tate Florida
Prepaid College Program to provide a medium through which the cost of registration
and dormitory residence may be paid in advance of enrollment in a state postsecondary
institution at a rate lower than the projected corresponding cost at the time of
actual enrollment. Such payments shall be combined and invested in a manner that
yields, at a minimum, sufficient interest to generate the difference between the
prepaid amount and the cost of registration and dormitory residence at the time
of actual enrollment. Students who enroll in a state postsecondary institution pursuant
to this section shall be charged no fees in excess of the terms delineated in the
advance payment contract.
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(2) PREPAID COLLEGE PLANS.—
At a minimum, the board shall make advance payment contracts available for two independent
plans to be known as the Florida College System institution plan and the university
plan. The board may also make advance payment contracts available for a dormitory
residence plan. The board may restrict the number of participants in the Florida
College System institution plan, university plan, and dormitory residence plan,
respectively. However, any person denied participation solely on the basis of such
restriction shall be granted priority for participation during the succeeding year.
(a)1. Through the Florida College System institution plan, the advance payment contract
may provide prepaid registration fees for a specified number of undergraduate semester
credit hours not to exceed the average number of hours required for the conference
of an associate degree. Qualified beneficiaries shall bear the cost of any laboratory
fees associated with enrollment in specific courses. Each qualified beneficiary
shall be classified as a resident for tuition purposes, pursuant to s. 1009.21,
regardless of his or her actual legal residence.
2. Effective July 1, 1998, the board may provide advance payment contracts for additional
fees delineated in s. 1009.23, not to exceed the average number of hours required
for the conference of an associate degree, in conjunction with advance payment contracts
for registration fees. Florida College System institution plan contracts purchased
prior to July 1, 1998, shall be limited to the payment of registration fees as defined
in s. 1009.97.
3. Effective July 1, 2009, the board may offer an advance payment contract for the
Florida College System institution plan covering prepaid registration fees and the
fees authorized in s. 1009.23. Such a contract may be offered in specific increments
for use toward an associate degree. The total number of hours purchased for a qualified
beneficiary may not exceed the average number of hours required for the conference
of an associate degree.
(b)1. Through the university plan, the advance payment contract may provide prepaid
registration fees for a specified number of undergraduate semester credit hours
not to exceed the average number of hours required for the conference of a baccalaureate
degree. Qualified beneficiaries shall bear the cost of any laboratory fees associated
with enrollment in specific courses. Each qualified beneficiary shall be classified
as a resident for tuition purposes pursuant to s. 1009.21, regardless of his or
her actual legal residence.
2. Effective July 1, 1998, the board may provide advance payment contracts for additional
fees delineated in s. 1009.24(9)-(12), for a specified number of undergraduate semester
credit hours not to exceed the average number of hours required for the conference
of a baccalaureate degree, in conjunction with advance payment contracts for registration
fees. Such contracts shall provide prepaid coverage for the sum of such fees, to
a maximum of 45 percent of the cost of registration fees. University plan contracts
purchased prior to July 1, 1998, shall be limited to the payment of registration
fees as defined in s. 1009.97.
3. Effective July 1, 2007, the board may provide advance payment contracts for the
tuition differential authorized in s. 1009.24(16) for a specified number of undergraduate
semester credit hours, which may not exceed the average number of hours required
for the conference of a baccalaureate degree, in conjunction with advance payment
contracts for registration fees.
4. Effective July 1, 2009, the board may offer an advance payment contract for the
university plan covering prepaid registration fees, the fees authorized in s. 1009.24(9)-(12),
and the tuition differential authorized in s. 1009.24(16). Such a contract may be
offered in specific increments for use toward a baccalaureate degree. The total
number of hours purchased for a qualified beneficiary may not exceed the average
number of hours required for the conference of a baccalaureate degree.
(c) The cost of participation in contracts authorized under paragraph (a) or paragraph
(b) shall be based primarily on the current and projected fees included in the plan
within the Florida College System or the State University System, respectively,
the number of credit hours or semesters included in the plan, and the number of
years expected to elapse between the purchase of the plan on behalf of a qualified
beneficiary and the exercise of the benefits provided in the plan by such beneficiary.
(d) Through the dormitory residence plan, the advance payment contract may provide
prepaid housing fees for a maximum of 10 semesters of full-time undergraduate enrollment
in a state university. Dormitory residence plans shall be purchased in increments
of 2 semesters. The cost of participation in the dormitory residence plan shall
be based primarily on the average current and projected housing fees within the
State University System and the number of years expected to elapse between the purchase
of the plan on behalf of a qualified beneficiary and the exercise of the benefits
provided in the plan by such beneficiary. Qualified beneficiaries shall have the
highest priority in the assignment of housing within university residence halls.
Qualified beneficiaries shall bear the cost of any additional elective charges such
as laundry service or long-distance telephone service. Each state university may
specify the residence halls or other university-held residences eligible for inclusion
in the plan. In addition, any state university may request immediate termination
of a dormitory residence contract based on a violation or multiple violations of
rules of the residence hall or other university-held residences. In the event that
sufficient housing is not available for all qualified beneficiaries, the board shall
refund the purchaser or qualified beneficiary an amount equal to the fees charged
for dormitory residence during that semester. If a qualified beneficiary fails to
be admitted to a state university or chooses to attend a Florida College System
institution that operates one or more dormitories or residency opportunities, or
has one or more dormitories or residency opportunities operated by the Florida College
System institution direct-support organization, the qualified beneficiary may transfer
or cause to have transferred to the Florida College System institution, or Florida
College System institution direct-support organization, the fees associated with
dormitory residence. Dormitory fees transferred to the Florida College System institution
or Florida College System institution direct-support organization may not exceed
the maximum fees charged for state university dormitory residence for the purposes
of this section, or the fees charged for Florida College System institution or Florida
College System institution direct-support organization dormitories or residency
opportunities, whichever is less.
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(3) TRANSFER OF BENEFITS
TO PRIVATE AND OUT-OF-STATE COLLEGES AND UNIVERSITIES AND TO CAREER CENTERS.—
A qualified beneficiary may apply the benefits of an advance payment contract toward
any eligible educational institution as defined in s. 529 of the Internal Revenue
Code. The board shall transfer or cause to be transferred to the institution designated
by the qualified beneficiary an amount not to exceed the redemption value of the
advance payment contract at a state postsecondary institution. If the cost of registration
or housing fees at such institution is less than the corresponding fees at a state
postsecondary institution, the amount transferred may not exceed the actual cost
of registration and housing fees. A transfer authorized under this subsection may
not exceed the number of semester credit hours or semesters of dormitory residence
contracted on behalf of a qualified beneficiary. Any advertisement disseminated
by a for-profit educational institution which references the Stanley G. Tate Florida
Prepaid College Program shall clearly state the following: “While the benefits of
the Florida Prepaid College contract may be used at this institution, the Florida
Prepaid College Board does not endorse any particular educational institution.”
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(4) ADVANCE PAYMENT CONTRACTS.—
The board shall develop advance payment contracts for registration and may develop
advance payment contracts for dormitory residence as provided in this section. Advance
payment contracts shall be exempt from chapter 517 and the Florida Insurance Code.
Such contracts shall include, but not be limited to, the following:
(a) The amount of the payment or payments and the number of payments required from
a purchaser on behalf of a qualified beneficiary.
(b) The terms and conditions under which purchasers shall remit payments, including,
but not limited to, the date or dates upon which each payment shall be due.
(c) Provisions for late payment charges and for default.
(d) Provisions for penalty fees for withdrawals from the fund.
(e) Except for an advance payment contract entered into pursuant to subsection (9)
or s. 1009.983, the name and date of birth of the qualified beneficiary on whose
behalf the contract is drawn and the terms and conditions under which another person
may be substituted as the qualified beneficiary.
(f) The name of any person who may terminate the contract. The terms of the contract
shall specify whether the contract may be terminated by the purchaser, the qualified
beneficiary, a specific designated person, or any combination of these persons.
(g) The terms and conditions under which a contract may be terminated, modified,
or converted, the name of the person entitled to any refund due as a result of termination
of the contract pursuant to such terms and conditions, and the amount of refund,
if any, due to the person so named.
(h) The number of semester credit hours or semesters of dormitory residence contracted
by the purchaser.
(i) The state postsecondary system toward which the contracted credit hours or semesters
of dormitory residence will be applied.
(j) The assumption of a contractual obligation by the board to the qualified beneficiary
to provide for a specified number of semester credit hours of undergraduate instruction
at a state postsecondary institution, not to exceed the average number of credit
hours required for the conference of the degree that corresponds to the plan purchased
on behalf of the qualified beneficiary or to provide for a specified number of semesters
of dormitory residence, not to exceed the number of semesters of full-time enrollment
required for the conference of a baccalaureate degree.
(k) The period of time after which advance payment contracts that have not been
terminated or the benefits used shall be considered terminated. Time expended by
a qualified beneficiary as an active duty member of any of the armed services of
the United States shall be added to the period of time specified by the board. A
purchaser or qualified beneficiary whose advance payment contract is terminated
pursuant to this paragraph is not entitled to a refund. Notwithstanding chapter
717, the board shall retain any moneys paid by the purchaser for an advance payment
contract that has been terminated in accordance with this paragraph. Such moneys
may be transferred to the Florida Prepaid Tuition Scholarship Program to provide
matching funds for prepaid tuition scholarships for economically disadvantaged youths
who remain drug free and crime free. In addition, such funds may be used for any
other scholarship programs approved by the board under s. 1009.983(8)(b), provided
that any matching funds are obtained solely from the private sector.
(l) Other terms and conditions deemed by the board to be necessary or proper.
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(5) REFUNDS.—
(a) A refund may not exceed the amount paid into the fund by the purchaser except
as provided in paragraphs (b), (c), and (f).
(b) If the beneficiary is awarded a scholarship, the terms of which cover the benefits
included in the advance payment contracts, moneys paid for the purchase of the advance
payment contracts shall be refunded to the purchaser in semester installments coinciding
with the tuition by the beneficiary in an amount which, in total, does not exceed
the redemption value of the advance payment contract at a state postsecondary institution.
(c) In the event of the death or total disability of the beneficiary, moneys paid
for the purchase of advance payment contracts shall be refunded to the purchaser
in an amount not to exceed the redemption value of the advance payment contract
at a state postsecondary institution.
(d) If an advance payment contract is converted from one registration plan to a
plan of lesser value, the amount refunded may not exceed the difference between
the amount paid for the original contract and the amount that would have been paid
for the contract to which the plan is converted had the converted plan been purchased
under the same payment plan at the time the original advance payment contract was
executed.
(e) A refund may not be authorized through an advance payment contract for any school
year partially attended but not completed. For purposes of this section, a school
year partially attended but not completed shall mean any one semester whereby the
student is still enrolled at the conclusion of the official drop-add period but
withdraws before the end of such semester. If a beneficiary does not complete a
Florida College System institution plan or university plan for reasons other than
specified in paragraph (c), the purchaser shall receive a refund of the amount paid
into the fund for the remaining unattended years of the advance payment contract
pursuant to rules promulgated by the board.
(f) A purchaser of an advance payment contract entered into pursuant to subsection
(9) or s. 1009.983 may receive a refund equal to the redemption value of the unused
portion of the advance payment contract at a state postsecondary institution if
the refund is used exclusively to fund additional scholarships purchased pursuant
to subsection (9) or s. 1009.983.
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(6) CONFIDENTIALITY
OF ACCOUNT INFORMATION.— Information that identifies the purchasers or beneficiaries
of any plan promulgated under this section and their advance payment account activities
is exempt from the provisions of s. 119.07(1). However, the board may authorize
the program’s records administrator to release such information to a Florida College
System institution, college, or university in which a beneficiary may enroll or
is enrolled. Florida College System institutions, colleges, and universities shall
maintain such information as exempt from the provisions of s. 119.07(1).
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(7) OBLIGATIONS OF BOARD.—
The state shall agree to meet the obligations of the board to qualified beneficiaries
if moneys in the fund fail to offset the obligations of the board. The Legislature
shall appropriate to the Florida Prepaid College Trust Fund the amount necessary
to meet the obligations of the board to qualified beneficiaries.
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(8) PROGRAM TERMINATION.—
In the event that the state determines the prepaid program to be financially infeasible,
the state may discontinue the provision of the program. Any qualified beneficiary
who has been accepted by and is enrolled or is within 5 years of enrollment in an
eligible independent college or university or state postsecondary institution shall
be entitled to exercise the complete benefits for which he or she has contracted.
All other contract holders shall receive a refund of the amount paid in and an additional
amount in the nature of interest at a rate that corresponds, at a minimum, to the
prevailing interest rates for savings accounts provided by banks and savings and
loan associations.
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(9) SCHOLARSHIPS.— A
nonprofit organization described in s. 501(c)(3) of the United States Internal Revenue
Code and exempt from taxation under s. 501(a) of the United States Internal Revenue
Code may purchase advance payment contracts for a scholarship program that has been
approved by the board and is operated by the purchasing organization.
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(10) PAYMENTS ON BEHALF OF
QUALIFIED BENEFICIARIES.—
(a) As used in this subsection, the term:
1. “Actuarial reserve” means the amount by which the expected value of the assets
exceed the expected value of the liabilities of the trust fund.
2. “Dormitory fees” means the fees included under advance payment contracts pursuant
to paragraph (2)(d).
3. “Fiscal year” means the fiscal year of the state pursuant to s. 215.01.
4. “Local fees” means the fees covered by an advance payment contract provided pursuant
to subparagraph (2)(b)2.
5. “Tuition differential” means the fee covered by advance payment contracts sold
pursuant to subparagraph (2)(b)3. The base rate for the tuition differential fee
for the 2012-2013 fiscal year is established at $37.03 per credit hour. The base
rate for the tuition differential in subsequent years is the amount paid by the
board for the tuition differential for the preceding year adjusted pursuant to subparagraph
(b)2.
(b) Effective with the 2009-2010 academic year and thereafter, and notwithstanding
the provisions of s. 1009.24, the amount paid by the board to any state university
on behalf of a qualified beneficiary of an advance payment contract whose contract
was purchased before July 1, 2009, shall be:
1. As to registration fees, if the actuarial reserve is less than 5 percent of the
expected liabilities of the trust fund, the board shall pay the state universities
5.5 percent above the amount assessed for registration fees in the preceding fiscal
year. If the actuarial reserve is between 5 percent and 6 percent of the expected
liabilities of the trust fund, the board shall pay the state universities 6 percent
above the amount assessed for registration fees in the preceding fiscal year. If
the actuarial reserve is between 6 percent and 7.5 percent of the expected liabilities
of the trust fund, the board shall pay the state universities 6.5 percent above
the amount assessed for registration fees in the preceding fiscal year. If the actuarial
reserve is equal to or greater than 7.5 percent of the expected liabilities of the
trust fund, the board shall pay the state universities 7 percent above the amount
assessed for registration fees in the preceding fiscal year, whichever is greater.
2. As to the tuition differential, if the actuarial reserve is less than 5 percent
of the expected liabilities of the trust fund, the board shall pay the state universities
5.5 percent above the base rate for the tuition differential fee in the preceding
fiscal year. If the actuarial reserve is between 5 percent and 6 percent of the
expected liabilities of the trust fund, the board shall pay the state universities
6 percent above the base rate for the tuition differential fee in the preceding
fiscal year. If the actuarial reserve is between 6 percent and 7.5 percent of the
expected liabilities of the trust fund, the board shall pay the state universities
6.5 percent above the base rate for the tuition differential fee in the preceding
fiscal year. If the actuarial reserve is equal to or greater than 7.5 percent of
the expected liabilities of the trust fund, the board shall pay the state universities
7 percent above the base rate for the tuition differential fee in the preceding
fiscal year.
3. As to local fees, the board shall pay the state universities 5 percent above
the amount assessed for local fees in the preceding fiscal year.
4. As to dormitory fees, the board shall pay the state universities 6 percent above
the amount assessed for dormitory fees in the preceding fiscal year.
5. Qualified beneficiaries of advance payment contracts purchased before July 1,
2007, are exempt from paying any tuition differential fee.
(c) The board shall pay state universities the actual amount assessed in accordance
with law for registration fees, the tuition differential, local fees, and dormitory
fees for advance payment contracts purchased on or after July 1, 2009.
(d) The board shall annually evaluate or cause to be evaluated the actuarial soundness
of the trust fund.
History.—s. 488, ch. 2002-387; s. 126, ch. 2004-357; s. 3, ch. 2006-303; s. 3, ch.
2007-225; s. 190, ch. 2008-4; s. 28, ch. 2009-60; s. 1, ch. 2009-136; s. 1, ch.
2009-175; s. 147, ch. 2011-5.
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(1)(a) The Florida Prepaid
College Board is authorized to create, establish, and administer the Florida College
Savings Program to promote and enhance the affordability of higher education in
the state and to enable persons to contribute funds that are combined and invested
to pay the subsequent higher education expenses of a designated beneficiary. The
board may not implement the savings program until it has obtained:
1. A written opinion from counsel specializing in federal tax matters indicating
that the savings program constitutes a qualified tuition program under s. 529 of
the Internal Revenue Code;
2. A written opinion from a qualified member of the United States Patent Bar indicating
that the implementation of the savings program or the operation of the savings program
will not knowingly infringe upon any patent or copyright specifically related to
the financing of higher education expenses;
3. A written opinion of qualified counsel specializing in federal securities law
that the savings program and the offering of participation in the savings program
does not violate federal securities law; and
4. A written opinion from the board’s litigation counsel indicating that the implementation
or operation of the savings program will not adversely impact any pending litigation
against the board.
(b) The benefactor retains ownership of all amounts on deposit in his or her account
with the savings program up to the date of distribution on behalf of a designated
beneficiary. Earnings derived from investment of the contributions shall be considered
to be held in trust in the same manner as contributions, except as applied for purposes
of the designated beneficiary and for purposes of maintaining and administering
the program as provided in this section.
(c) All amounts attributable to penalties shall be used for purposes of the savings
program or as required by the Internal Revenue Code, and other amounts received
other than contributions shall be properties of the savings program. Proceeds from
penalties shall remain with the program and may be used for any costs or purposes
of the savings program or used as required by the Internal Revenue Code.
(d) Deposits and contributions to the program, the property of the board, and the
earnings on the college savings accounts are exempt from taxation.
(e) The assets of the savings program shall be continuously invested and reinvested
in a manner consistent with the purposes of the program, expended on expenses incurred
by the operation and management of the savings program, or refunded to the benefactor
or designated beneficiary under the conditions provided in the participation agreement.
The board is not required to invest directly in obligations of the state or any
political subdivision of the state or in any investment or other fund administered
by the state.
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(2) PARTICIPATION AGREEMENTS.—
(a) The board may establish plans to permit benefactors to prepay the qualified
higher education expenses associated with enrollment in an eligible educational
institution and may permit benefactors to select from among alternative investment
plans designed to provide funds to pay qualified education expenses of a designated
beneficiary. The board shall not accept contributions in excess of the amount allowed
pursuant to s. 529 of the Internal Revenue Code and shall prescribe by rule the
methodology and information sources that shall be used to determine the projected
costs of qualified higher education expenses for designated beneficiaries of prescribed
ages.
(b) The board shall develop a participation agreement which shall be the agreement
between the board and each benefactor, which may include, but is not limited to:
1. The name, date of birth, and social security number of the designated beneficiary.
2. The amount of the contribution or contributions and number of contributions required
from a benefactor on behalf of a designated beneficiary.
3. The terms and conditions under which benefactors shall remit contributions, including,
but not limited to, the date or dates upon which each contribution is due. Deposits
to the savings program by benefactors may only be in cash. Benefactors may contribute
in a lump sum, periodically, in installments, or through electronic funds transfer
or employer payroll deductions.
4. Provisions for late contribution charges and for default.
5. Provisions for penalty fees for withdrawals from the program.
6. The name of the person who may terminate participation in the program. The participation
agreement must specify whether the account may be terminated by the benefactor,
the designated beneficiary, a specific designated person, or any combination of
these persons.
7. The terms and conditions under which an account may be terminated, modified,
or converted, the name of the person entitled to any refund due as a result of termination
of the account pursuant to such terms and conditions, and the amount of refund,
if any, due to the person so named.
8. Penalties for distributions not used or made in accordance with s. 529 of the
Internal Revenue Code.
9. Any charges or fees in connection with the administration of the savings fund.
10. The period of time after which each participation agreement shall be considered
to be terminated. Time expended by a designated beneficiary as an active duty member
of any of the armed services of the United States shall be added to the period specified
pursuant to this subparagraph. Should a participation agreement be terminated, the
balance of the account, after notice to the benefactor, shall be declared unclaimed
and abandoned property. The board shall retain any moneys paid by the benefactor
for a participation agreement that has been terminated in accordance with this subparagraph.
Such moneys may be transferred to the Florida Prepaid Tuition Scholarship Program
to provide matching funds for prepaid tuition scholarships for economically disadvantaged
youths who remain drug free and crime free.
11. Other terms and conditions deemed by the board to be necessary or proper.
(c) The participation agreement shall clearly state that:
1. The contract is only a debt or obligation of the savings program and the savings
fund, and is not otherwise a debt or obligation of the state.
2. Participation in the program does not guarantee that sufficient funds will be
available to cover all qualified higher education expenses for any designated beneficiary
and does not guarantee admission to or continued enrollment at an eligible educational
institution of any designated beneficiary.
(d) The participation agreement may be freely amended throughout its term for purposes
including, but not limited to, allowing to enable the benefactor to increase or
decrease the level of participation, change designated beneficiaries, and carry
out similar matters permitted by this section and the Internal Revenue Code.
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(3) DISTRIBUTIONS FOR
QUALIFIED HIGHER EDUCATION EXPENSES.— The board shall establish requirements and
procedures for beneficiaries to realize the benefits of participation agreements.
In establishing such requirements and procedures, the board shall make distributions
in as efficient and expeditious manner as is prudent and possible, consistent with
the Internal Revenue Code.
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(4) REFUNDS.— (a) A benefactor
may request a refund of the principal amount of his or her contributions, plus actual
investment earnings or minus actual investment losses on the contributions, less
any applicable penalty, and less any amounts used to provide benefits to the designated
beneficiary.
(b) Notwithstanding paragraph (a), a penalty may not be levied if a benefactor requests
a refund from the program due to:
1. Death of the beneficiary.
2. Total disability of the beneficiary.
3. Scholarship, allowance, or payment received by the beneficiary to the extent
that the amount of the refund does not exceed the amount of the scholarship, allowance,
or payment in accordance with federal law.
(c) If a benefactor requests a refund of funds contributed to the program for any
cause other than those listed in paragraph (b), there shall be imposed a penalty
of 10 percent of the earnings of the account and any applicable taxes, or the amount
required by the Internal Revenue Code. Earnings shall be calculated as the total
value of the participation agreement, less the aggregate contributions, or in the
manner prescribed in the Internal Revenue Code.
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(5) MATERIAL MISREPRESENTATION;
PENALTY.— If the benefactor or the designated beneficiary makes any material misrepresentation
in the application for a participation agreement or in any communication with the
board regarding the program, especially regarding the withdrawal or distribution
of funds therefrom, the account may be involuntarily liquidated by the board. If
the account is so liquidated, the benefactor is entitled to a refund, subject to
a 10-percent penalty or the amount required by the Internal Revenue Code.
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(6) CONFIDENTIALITY
OF ACCOUNT INFORMATION.— Information that identifies the benefactors or the designated
beneficiary of any account initiated under this section is confidential and exempt
from s. 119.07(1) and s. 24(a), Art. I of the State Constitution. However, the board
may authorize the release of such information to a Florida College System institution,
college, or university in which a designated beneficiary may enroll or is enrolled.
Florida College System institutions, colleges, and universities shall maintain the
confidentiality of such information.
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(7) OBLIGATIONS OF BOARD.—
Any contract or participation agreement entered into by or any obligation of the
board on behalf of and for the benefit of the savings program does not constitute
a debt or obligation of the state but is an obligation of the savings program. The
state has no obligation to any designated beneficiary or any other person as a result
of the savings program. The obligation of the savings program is limited solely
to those amounts deposited in the savings fund. All amounts obligated to be paid
from the savings fund are limited to amounts available for such obligation. The
amounts on deposit in the savings program may only be disbursed in accordance with
the provisions of this section.
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(8) PROGRAM TERMINATION.—
The savings program shall continue in existence until its existence is terminated
by law. If the state determines that the savings program is financially infeasible,
the state may discontinue the savings program. Upon termination of the savings program,
all deposits shall be returned to benefactors, to the extent possible, and any unclaimed
assets in the savings program may be transferred to the Florida Prepaid Tuition
Scholarship Program to provide matching funds for prepaid tuition scholarships for
economically disadvantaged youths who remain drug free and crime free.
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(9) STATE PLEDGE.— The state
pledges to benefactors and designated beneficiaries of the savings program that
the state will not limit or alter the rights under this section which are vested
in the program until such obligations are met and discharged. However, this subsection
does not preclude such limitation if adequate provision is made by law for the protection
of the benefactors and designated beneficiaries pursuant to the obligations of the
board, and, if the state or the board determines that the savings program is not
financially feasible, the state or the board may discontinue the program. If the
program is discontinued, the board shall refund to benefactors their contributions
to the program, plus any investment earnings or minus any investment losses. The
board, on behalf of the state, may include this pledge and undertaking by the state
in participation agreements.
History.—s. 489, ch. 2002-387; s. 1, ch. 2005-130; s. 148, ch. 2011-5.
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Nothing in ss. 1009.97-1009.984 shall be construed as a promise or guarantee that
a qualified beneficiary or a designated beneficiary will be admitted to a state
postsecondary institution or to a particular state postsecondary institution, will
be allowed to continue enrollment at a state postsecondary institution after admission,
or will be graduated from a state postsecondary institution.
History.—s. 490, ch. 2002-387.
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(1) The Florida Prepaid College Board may establish a direct-support organization
which is:
(a) A Florida corporation, not for profit, incorporated under the provisions of
chapter 617 and approved by the Secretary of State.
(b) Organized and operated exclusively to receive, hold, invest, and administer
property and to make expenditures to or for the benefit of the board.
(c) An organization which the board, after review, has certified to be operating
in a manner consistent with the goals of the board and in the best interests of
the state. Unless so certified, the organization may not use the name of the prepaid
program or savings program.
(2) The direct-support organization shall operate under written contract with the
board. The contract must provide for:
(a) Approval of the articles of incorporation and bylaws of the direct-support organization
by the board.
(b) Submission of an annual budget for the approval of the board. The budget must
comply with rules adopted by the board.
(c) Certification by the board that the direct-support organization is complying
with the terms of the contract and in a manner consistent with the goals and purposes
of the board and in the best interest of the state. Such certification must be made
annually and reported in the official minutes of a meeting of the board.
(d) The reversion to the board, or to the state if the board ceases to exist, of
moneys and property held in trust by the direct-support organization for the benefit
of the board or prepaid program if the direct-support organization is no longer
approved to operate for the board or if the board ceases to exist.
(e) The fiscal year of the direct-support organization, which must begin July 1
of each year and end June 30 of the following year.
(f) The disclosure of material provisions of the contract and of the distinction
between the board and the direct-support organization to donors of gifts, contributions,
or bequests, and such disclosure on all promotional and fundraising publications.
(3) The direct-support organization shall provide for an annual financial audit
in accordance with s. 215.981. The board and Auditor General may require and receive
from the organization or its independent auditor any detail or supplemental data
relative to the operation of the organization.
(4) The identity of donors who desire to remain anonymous shall be confidential
and exempt from the provisions of s. 119.07(1) and s. 24(a), Art. I of the State
Constitution, and such anonymity shall be maintained in the auditor’s report. Information
received by the organization that is otherwise confidential or exempt by law shall
retain such status. Any sensitive, personal information regarding contract beneficiaries,
including their identities, is exempt from the provisions of s. 119.07(1) and s.
24(a), Art. I of the State Constitution.
(5) The chair and the executive director of the board shall be directors of the
direct-support organization and shall jointly name, at a minimum, three other individuals
to serve as directors of the organization.
(6) The board may authorize the direct-support organization established in this
section to use board property, except money, and use facilities and personal services
subject to the provisions of this section. If the direct-support organization does
not provide equal employment opportunities to all persons regardless of race, color,
religion, sex, age, or national origin, it may not use the property, facilities,
or personal services of the board. For the purposes of this section, the term “personal
services” includes full-time personnel and part-time personnel as well as payroll
processing as prescribed by rule of the board. The board shall adopt rules prescribing
the procedures by which the direct-support organization is governed and any conditions
with which such a direct-support organization must comply to use property, facilities,
or personal services of the board.
(7) The board may invest funds of the direct-support organization which have been
allocated for the purchase of advance payment contracts for scholarships with receipts
for advance payment contracts.
(8)(a) The direct-support organization shall administer the Florida Prepaid Tuition
Scholarship Program pursuant to the provisions of s. 1009.984.
(b) The board may establish and administer additional scholarship programs supported
from escheated funds retained by the board pursuant to s. 1009.972(5) provided that
any matching funds for such scholarships are obtained solely from the private sector.
The board shall develop criteria for approval of additional scholarship programs
supported from escheated funds. The direct-support organization’s annual report
shall include a list of any additional scholarship programs approved by the board
pursuant to this subsection, including a description of the programs and the amount
of escheated funds utilized to fund the programs.
History.—s. 491, ch. 2002-387; s. 4, ch. 2006-303.
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The Florida Prepaid Tuition Scholarship Program is established to provide economically
disadvantaged youth with prepaid postsecondary tuition scholarships. The direct-support
organization established pursuant to s. 1009.983 shall administer the program with
the assistance and cooperation of the Department of Education to:
(1) Provide an incentive for economically disadvantaged youth to improve school
attendance and academic performance in order to graduate and pursue a postsecondary
education.
(2) Obtain the commitment and involvement of private sector entities by virtue of
funding matches with a ratio of 50 percent provided by the private sector and 50
percent provided by the state.
(3) Purchase prepaid tuition scholarships for students certified by the Department
of Education to the direct-support organization who meet minimum economic and school
requirements and remain drug free and crime free.
(a) For the purpose of this subsection, “drug free” means not being convicted of,
or adjudicated delinquent for, any violation of chapter 893 after being designated
a recipient of a Florida prepaid tuition scholarship.
(b) For the purpose of this subsection, “crime free” means not being convicted of,
or adjudicated delinquent for, any felony or first degree misdemeanor as defined
in ss. 775.08 and 775.081 after being designated a recipient of a Florida prepaid
tuition scholarship.
History.—s. 492, ch. 2002-387.
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