The purpose and effect of these rule developments is to create the initial administrative rules for the Florida ABLE Program.

 

STATE BOARD OF ADMINISTRATION

Florida Prepaid College Board

RULE NOS.:RULE TITLES:

19B-18.001Application of Rule Chapter; Definitions

19B-18.002Application for Participation in the Program

19B-18.003Participation Agreement

19B-18.005Account and Administration Fee

PURPOSE AND EFFECT: The purpose and effect of these rule developments is to create the initial administrative rules for the Florida ABLE Program.

SUMMARY: The initial rules for the Florida ABLE Program include definitions as authorized by statute and incorporated into the Participation Agreement and Terms and Conditions; what information can be collected from an applicant for an ABLE Account; the Participation Agreement and Terms and Conditions that are incorporated by reference into the rule; and the factors that may be considered when evaluating the amount to be charged for the Account Fee and Administration Fee.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION: The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: During a discussion of the proposed rule at the Board Meeting, the Board, based upon the expertise and experience of its members and recommendation by Counsel, determined that a SERC was not necessary and that the rules will not require ratification by the Legislature. No person or interested party submitted additional information regarding the economic impact.

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.

RULEMAKING AUTHORITY: 1009.971(1), (4) and 1009.986(10) FS.

LAW IMPLEMENTED: 1009.986 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 hours before the workshop/meeting by contacting: Michael Frick, Director of Operations, 1801 Hermitage Blvd., Suite 210, Tallahassee, FL 32308, [phone], [e-mail]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Michael Frick, Director of Operations, 1801 Hermitage Blvd., Suite 210, Tallahassee, FL 32308, [phone], [e-mail].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

19B-18.001 Application of Rule Chapter; Definitions.

(1) These rules apply to participants of the Florida ABLE Program, a Qualified ABLE Program that allows persons to make contributions to an Account established for the purpose of paying the Qualified Disability Expenses of a Beneficiary.

(2) For the purposes of the Florida ABLE Program and Rule Chapter 19B-18, F.A.C., defined terms and other definitions are set forth in the Participation Agreement and Terms and Conditions, which are incorporated by reference in Rule 19B-18.003, F.A.C.

Rulemaking Authority 1009.971(1) and (4) FS; 1009.986(10) FS. Law Implemented 1009.986 FS. History–New_______.

 

19B-18.002 Application for Participation in the Program.

(1) The Program may only require that applicants provide the following information:

(a) For the Beneficiary, Administrator, and Authorized Signatory:

1. Full legal name, including salutation and suffix;

2. Social Security Number;

3. Date of birth;

4. Two mailing addresses;

5. Two telephone numbers;

6. Two e-mail addresses;

7. Relationship to Beneficiary; and

8. Contact preferences.

(b) The Future Contribution Allocation.

(c) The source and amount of any initial contribution and Rollover Contribution.

(d) Marketing Information for the Beneficiary, Administrator, and Authorized Signatory:

1. How did you hear about the Program?

2. Annual Family or Household Income;

3. Gender;

4. Race;

5. Primary language;

6. Level of education; and

7. Types of federal and state benefits currently received or applied for.

(e) Information required for the processing of a one-time and recurring automatic contribution authorization.

(f) Information required to determine basis of Beneficiary’s eligibility for an ABLE Account.

(g) Information required by the Participation Agreement and Terms and Conditions.

(h) Information required by the Secretary of the Treasury or Commissioner of Social Security.

(2) A copy of the Participation Agreement, Terms and Conditions, and Application may be obtained from the Board by submitting a request for these documents to: P. O. Box 6448, Tallahassee, Florida 32314-6448.

Rulemaking Authority 1009.971(1) and (4) FS; 1009.986(10) FS. Law Implemented 1009.986 FS. History–New_.

 

19B-18.003 Participation Agreement.

The Participation Agreement, Form No. FPCB 2015-07, [Insert DoS Reference Website Link], is hereby incorporated by reference. The Terms and Conditions, applicable to the Participation Agreement, Form No. FPCB 2015-08, [Insert DoS Reference Website Link], is hereby incorporated by reference.

Rulemaking Authority 1009.971(1) and (4) FS; 1009.986(10) FS. Law Implemented 1009.986 FS. History–New_______.

 

19B-18.005 Account and Investment Administration Fees.

Florida ABLE, Inc., will determine the amounts of the Account Fee and the Investment Administration Fee periodically and may consider factors including, but not limited to, the total amount invested in the Program by all Beneficiaries, the amounts of the fees that the Program must pay for investment management services, trustee services, records administration services, marketing services, and customer services and the annual budget of the Program.

Rulemaking Authority 1009.971(1) and (4) FS; 1009.986(10) FS. Law Implemented 1009.986 FS. History–New_____.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Florida Prepaid College Board

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Florida Prepaid College Board

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: December 9, 2015

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: December 9, 2015