19B-5.003: Contract Requirements
PURPOSE AND EFFECT: To amend the contract requirements of advance payment contracts to include the tuition differential fee, to clarify how disbursements are made to colleges and universities and to update terminology.
SUMMARY: This rule change amends the Florida Prepaid College Plan contract requirements of advance payment contracts to include the tuition differential fee, to clarify how disbursements are made to colleges and universities and to update terminology.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 1009.971(1), (4), (6) FS.
LAW IMPLEMENTED: 1009.98 FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE,TIME AND PLACE SHOWN BELOW(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):
DATE AND TIME: November 19, 2007, 2:00 p.m.
PLACE: Suite 210, Hermitage Building, 1801 Hermitage Boulevard, Tallahassee, Florida
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Thomas J. Wallace, Executive Director, 1801 Hermitage Boulevard, Suite 210, Tallahassee, Florida 32308, telephone (850)488-8514
THE FULL TEXT OF THE PROPOSED RULE IS:
19B-5.003 Contract Requirements.
(1) No change.
(2) Only one (1) qualified beneficiary is allowed per advance payment contract, and a specific beneficiary can be named in only one (1) advance payment contract, provided however, a second advance payment
prepaid contract may be purchased for a beneficiary by the direct support organization or an organization operating a scholarship program pursuant to Rule 19B-5.007, F.A.C. If a second advance payment prepaid contract is purchased for a beneficiary by the direct support organization or an organization operating a scholarship program pursuant to Rule 19B-5.007, F.A.C., the purchaser of the original prepaid contract may receive a refund pursuant to subsection 19B-11.001(2) 1.(a), F.A.C. In the event duplicate advance payment contracts for the same beneficiary are processed and the second advance payment prepaid contract was not purchased by the direct support organization or an organization operating a scholarship program pursuant to Rule 19B-5.007, F.A.C., the advance payment contract processed first shall be deemed valid and the remaining advance payment contract shall be deemed terminated.
(3) No change.
(4) The benefits of an advance payment contract may be used within three (3) years in advance of the selected matriculation date indicated in the application with no penalty or additional cost. However, to utilize the benefits
a contract prior to the selected matriculation date, the purchaser must pay the advance payment contract in full before changing such matriculation date.
(5)(a) The benefits of an advance payment contract may be received for up to a ten
- (10) year period after the matriculation date. This ten - (10) year limitation will be extended upon application to the Board. Any time spent by the qualified beneficiary in the military service tolls the time for receiving contract benefits under all contracts plans. The matriculation date is the projected college enrollment year of the qualified beneficiary, based on the information about the qualified beneficiary’s age or grade contained in the purchaser’s application form, or similar information received subsequently by the Board from the purchaser. The right to use the benefits of an advance payment from a contract shall expire on December 31, ten (10) years after the matriculation date, or any extension thereof.
(b) When the benefits of an advance payment
from a contract have not been used on December 31, nine (9) years after the matriculation date or one (1) year prior to the expiration of any extension of the expiration date for the use of the advance payment contract benefits, the Board shall mail a written notice to the purchaser which indicates:
1. The purchaser must request in writing that the Board extend the time period for the use of advance payment contract benefits or to obtain a refund for the contract;
2. That the right to use the advance payment contract benefits will expire on December 31, ten (10) years after the matriculation date or any extension thereof; and
3. That such benefits and refund will escheat to the Florida Prepaid College Trust Fund on that date.
Such notice shall be mailed not later than 180 days prior to the expiration of the advance payment contract benefits. An alphabetical list of the names of purchasers of such advance payment contracts
accounts shall be posted on the Board’s website on the Internet.
(c) The benefits from and any refund associated with an advance payment contract for which the benefits have not been used by December 31, ten (10) years after the matriculation date, or any extension thereof, shall escheat to the Florida Prepaid College Trust Fund.
(6) Advance payment contracts
Accounts that are composed of tuition, and local fee and tuition differential fee plans contracts will only be paid if both the tuition plan, account and local fee plan account and tuition differential fee plan account are in good standing. Local fee payments and tuition differential fee payments shall not be remitted to pay tuition for any beneficiary attending a
Specific Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.98(4) FS. History–New 3-29-89, Amended 2-6-90, 3-19-92, Formerly 4G-5.003, Amended 5-31-95, 6-20-96, 2-18-99, 6-6-99, 11-6-01, 8-27-02,_________.