This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1151.PEW
DATE: 1/23/2024
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1151 Stanley G. Tate Florida Prepaid College Program
SPONSOR(S): Anderson
TIED BILLS: None. IDEN./SIM. BILLS: None.
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Postsecondary Education & Workforce
Subcommittee
Dixon Kiner
2) Education & Employment Committee
SUMMARY ANALYSIS
The bill transitions the effective period for the amount paid by the Florida Prepaid College Board to state
universities on behalf of qualified beneficiaries of advance payment contracts within the Prepaid Florida
Program from 2009 -2010 to 2022-2023. Additionally, it extends the applicability of the contracts to those
purchased before July 1, 2034.
The bill also removes obsolete language in regards to the differential fee amount paid for the 2012-2013 fiscal
year.
The bill does not have a fiscal impact.
The bill has an effective date of July 1, 2024.
STORAGE NAME: h1151.PEW PAGE: 2
DATE: 1/23/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Stanley G. Tate Florida Prepaid College Program
Background
The Stanley G. Tate Florida Prepaid College Program (Prepaid Program) was created to assist families
to prepay the future cost of college tuition through advance payment contracts (Prepaid Plans).
1
At the
time of purchase, Prepaid Plans guarantee the future payment of certain costs associated with
attendance at a postsecondary institution.
2
Additionally, the benefits, in some cases, can be utilized at
in-state private institutions and at out-of-state public and private colleges and universities that are able
to accept Title IV funding (i.e., federal student aid).
3
The administration of the prepaid program is overseen by the Florida Prepaid College Board (board).
4
In its role as the administrator of the trust fund, the board is responsible for managing it in a financially
sound manner, ensuring stability based on actuarial principles.
5
Over the past 30 years, the board has
managed the largest and most successful prepaid program among similar initiatives enabling more
than 561,000 students to attend college using the prepaid plans.
6
The Florida Prepaid Program
Families can choose from several plans allowing them to prepay the cost of college tuition, the tuition
differential fee, registration fees, and local fees at a price that is less than the expected future cost.
These plans include:
7
4-Year Florida University Plan
2 + 2 Florida Plan
4-Year Florida College Plan
2-Year Florida College Plan
1-Year Florida University Plan
Fees Associated with Postsecondary Institutions
The costs associated with attending a postsecondary institution encompass tuition and various fees
designed to contribute to the overall operational expenses of the institution.
8
One such fee, known as
the tuition differential fee, is charged by 11 of the 12 state universities. The tuition differential fee is
intended to promote improvements in the quality of undergraduate education and provide financial aid
to undergraduate students who exhibit financial need.
9
1
Section 1009.98(1)-(2), F.S.
2
Id.
3
Section 1009.98(3), F.S.
4
Section 1009.971(1), F.S.
5
Section 1009.971(4)(f), F.S.
6
Florida Prepaid, Our History, https://www.myfloridaprepaid.com/about-us/our-history/ (last visited Jan. 15, 2023).
7
Florida Prepaid, Plans and Pricing, https://www.myfloridaprepaid.com/prepaid-plans/plans-and-pricing/ (last visited Jan. 16, 2024);
see also Rule 19B-4.001, F.A.C.; Florida Prepaid College Board, Final Master Contract, at s. 4.02-4.07 (2021) available at
https://www.flrules.org/gateway/reference.asp?No=Ref-13896.
8
Florida Prepaid, All About Florida College and State University Fees, https://www.myfloridaprepaid.com/existing-customers/tuition-
and-fees/ (last visited Jan. 16, 2024).
9
Section 1009.24(16), F.S.; see also Final Master Contract, at s. 1.39 and State University System of Florida, Tuition and Required
Fees (2023-2024), available at https://www.flbog.edu/wp-content/uploads/2023/07/2023-2024-SUS-Tuition-and-Fees-Report-PDF-
1.pdf. STORAGE NAME: h1151.PEW PAGE: 3
DATE: 1/23/2024
By statute, for the 2012-2013 fiscal year, the base rate for the tuition differential fee was established at
$37.03 per credit hour.
10
In subsequent years, the statute requires this base rate to be adjusted based
on the amount assessed for the tuition differential in the preceding year. The adjustments are as
follows:
11
If the actuarial reserve
12
is less than 5 percent of the expected liabilities of the trust fund, the
board pays 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 pays 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 pays 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 pays the state universities 7 percent above the base rate for the tuition
differential fee in the preceding fiscal year.
Qualified beneficiaries of Prepaid Plans purchased before July 1, 2007, are exempt from paying any
tuition differential fee.
13
Effective with the 2009-2010 academic year and thereafter, in addition to the differential fees, other
fees are paid by the board to any state university on behalf of a qualified beneficiary of the Prepaid
Plan, whose contract was purchased before July 1, 2024. Among these fees are:
Registration Fee:
14
o If the actuarial reserve is less than 5 percent of the expected liabilities of the trust fund,
the board will pay the state universities 5.5 percent above the amount assessed for
registration fees in the preceding fiscal year.
o 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.
o 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.
o 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.
Local Fees: The board is required to pay the state universities 5 percent above the amount
assessed for local fees in the preceding fiscal year.
15
Effect of Proposed Changes
The bill transitions the effective period for the amount paid by the Florida Prepaid College Board to
state universities on behalf of qualified beneficiaries of advance payment contracts within the Prepaid
Florida Program from 2009-2010 to 2022-2023. Additionally, it extends the applicability of the contracts
to those purchased before July 1, 2034.
The bill also removes obsolete language in regards to the differential fee amount paid for the 2012-
2013 fiscal year.
10
Section 1009.98(10)(b), F.S.
11
Section 1009.98(10)(b)2., F.S.
12
Section 1009.98(10)(a)1. “Actuarial reserve” means the amount by which the expected value of the assets exceeds the expected
value of the liabilities of the trust fund.
13
Section 1009.98(10)(b)5., F.S.
14
Section 1009.98(10)(b)1., F.S.
15
Section 1009.98(10)(b)3., F.S. STORAGE NAME: h1151.PEW PAGE: 4
DATE: 1/23/2024
B. SECTION DIRECTORY:
Section 1: Amends s. 1009.98, F.S.; revising the definition of the term "tuition differential";
beginning in a specified academic year, revising which advanced contracts certain
provisions apply to.
Section 2: Establishes an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
None.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.