The purpose and effect is to update rules to reflect modifications to the Florida Prepaid College Program.

 

STATE BOARD OF ADMINISTRATION

Florida Prepaid College Board

RULE NOS.:RULE TITLES:

19B-16.003Participation Agreement

19B-16.005Maximum Account Balance Limit

PURPOSE AND EFFECT: The purpose and effect is to update rules to reflect modifications to the Florida Prepaid College Program.

SUMMARY: These rules are amended to specify the former federal standard under which an Account Owner may change the Investment Options with a reference to the relevant Internal Revenue Code provision anticipating further revisions to that Code provision; update Form numbers for the Participation Agreement and Terms and Conditions applicable to this change; rename the Maximum Account Balance to Maximum Account Contribution Limit to reflect the industry standard; and reduce the Maximum Account Contribution Limit from seven (7) times to five (5) times the most expensive annual qualified higher education expense to correspond to the safe harbor provision in the proposed Treasury Regulations.

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 review of the economic impact of these rules 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), (6) FS.

LAW IMPLEMENTED: 1009.971, 1009.981(1)(c), and 1009.981(2) 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 days before the workshop/meeting by contacting: Michael Frick, Director of Operations, 1801 Hermitage Blvd., Suite 210, Tallahassee, FL, [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, [phone], [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

19B-16.003 Participation Agreement.

The Participation Agreement, Form No. FPCB 2015-05 FPCB 2014-05, [reference link to provided by Florida Administrative Register] http://www.flrules.org/Gateway/reference.asp?No=Ref-02640, is hereby incorporated by reference. The Terms and Conditions, applicable to the Participation Agreement, Form No. FPCB 2015-06, FPCB 2014a-06 [reference link to provided by Florida Administrative Register] http://www.flrules.org/Gateway/reference.asp?No=Ref-03229, is hereby incorporated by reference.

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.971, 1009.981 FS. History–New 11-27-02, Amended 12-28-04, 6-2-05, 7-13-06, 12-4-07, 5-29-08, 6-3-09, 6-22-10, 10-24-12, 5-8-13, 10-7-13, ___________.

 

19B-16.005 Maximum Account Contribution Balance Limit.

The Maximum Account Balance Contribution Limit shall be calculated by multiplying the Qualified Higher Education Expenses, including tuition fees, room and board, and supplies, at the most expensive Eligible Educational Institution, by five, (5) seven (7) and rounding the resulting product downward to the nearest $1,000.00 increment. In determining the Qualified Higher Education Expenses at the most expensive Eligible Educational Institution, the Board will consult the figures compiled by the College Board and published in the annual College Handbook which is found at the College Board’s website (www.collegeboard.com). The Maximum Account Contribution Limit Balance shall not exceed the amount permitted pursuant to Section 529 of the Code.

Rulemaking Authority 1009.971(1), (4), (6) FS. Law Implemented 1009.971, 1009.98, 1009.981 FS. History–New 5-30-02, Amended 11-27-02, 12-28-03, 7-13-06, 7-9-08, 5-8-13, ________.

 

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: March 12, 2015

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: March 12, 2015