Florida Senate - 2015                                    SB 1484
       
       
        
       By Senator Sobel
       
       
       
       
       
       33-00364A-15                                          20151484__
    1                        A bill to be entitled                      
    2         An act relating to postsecondary education student
    3         debt; amending ss. 1008.45 and 1008.46, F.S.; revising
    4         the accountability standards of Florida College System
    5         institutions and State University System institutions
    6         to include standards for student retention and
    7         placement rates; amending s. 1009.01, F.S.; defining
    8         the term “student default risk index”; amending ss.
    9         1009.89 and 1009.891, F.S.; prohibiting an institution
   10         whose student default risk index exceeds a specified
   11         percentage from receiving William L. Boyd, IV, Florida
   12         resident access grant payments and Access to Better
   13         Learning and Education Grant Program payments until
   14         the student default risk index declines below a
   15         specified percentage; creating s. 1009.965, F.S.;
   16         establishing the Student Loan Debt Advisory Council;
   17         providing for the membership, organization, and duties
   18         of the advisory council; requiring the council to
   19         furnish a report to the Governor, the President of the
   20         Senate, and the Speaker of the House of
   21         Representatives; requiring the Board of Governors to
   22         consider an institution’s student default risk index
   23         in their Performance Based Funding Model; requiring
   24         that the Office of Program Policy Analysis and
   25         Government Accountability conduct a study on the
   26         effectiveness of the Florida Bright Futures
   27         Scholarship Program, the William L. Boyd, IV, Florida
   28         Resident Access Grant Program, and the Access to
   29         Better Learning and Education Grant Program by a
   30         specified date; providing an effective date.
   31  
   32         WHEREAS, the Legislature finds that postsecondary education
   33  has expanded opportunities for Floridians to qualify for high
   34  quality jobs and entry into the middle class, providing an
   35  enhanced workforce that strengthens this state’s economy, and
   36         WHEREAS, the Legislature finds that rising higher education
   37  costs force an increasing number of students to borrow greater
   38  amounts of money to pay for higher education, with the resulting
   39  burden of substantial student debt damaging not only the
   40  individual student’s ability to succeed financially but also
   41  posing grave consequences for the future economy of this state,
   42  NOW, THEREFORE,
   43  
   44  Be It Enacted by the Legislature of the State of Florida:
   45  
   46         Section 1. Present subsections (2) and (3) of section
   47  1008.45, Florida Statutes, are redesignated as subsections (3)
   48  and (4), respectively, and a new subsection (2) is added to that
   49  section, to read:
   50         1008.45 Florida College System institution accountability
   51  process.—
   52         (2) The State Board of Education shall implement standards
   53  to require Florida College System institutions to track, report,
   54  and maintain acceptable student retention and placement rates.
   55         Section 2. Section 1008.46, Florida Statutes, is amended to
   56  read:
   57         1008.46 State university accountability process.—It is the
   58  intent of the Legislature that an accountability process be
   59  implemented that provides for the systematic, ongoing evaluation
   60  of quality and effectiveness of state universities. It is
   61  further the intent of the Legislature that this accountability
   62  process monitor performance at the system level in each of the
   63  major areas of instruction, research, and public service, while
   64  recognizing the differing missions of each of the state
   65  universities. The accountability process shall provide for the
   66  adoption of systemwide performance standards and performance
   67  goals for each standard identified through a collaborative
   68  effort involving state universities, the Board of Governors, the
   69  Legislature, and the Governor’s Office, consistent with
   70  requirements specified in s. 1001.706. These standards must
   71  include requirements for institutions to track, report, and
   72  maintain acceptable student retention and placement rates. These
   73  standards and goals shall be consistent with s. 216.011(1) to
   74  maintain congruity with the performance-based budgeting process.
   75  This process requires that university accountability reports
   76  reflect measures defined through performance-based budgeting.
   77  The performance-based budgeting measures must also reflect the
   78  elements of teaching, research, and service inherent in the
   79  missions of the state universities.
   80         (1) By December 31 of each year, the Board of Governors
   81  shall submit an annual accountability report providing
   82  information on the implementation of performance standards,
   83  actions taken to improve university achievement of performance
   84  goals, the achievement of performance goals during the prior
   85  year, and initiatives to be undertaken during the next year. The
   86  accountability reports shall be designed in consultation with
   87  the Governor’s Office, the Office of Program Policy Analysis and
   88  Government Accountability, and the Legislature.
   89         (2) The Board of Governors shall recommend in the annual
   90  accountability report any appropriate modifications to this
   91  section.
   92         Section 3. Section 1009.01, Florida Statutes, is reordered
   93  and amended to read:
   94         1009.01 Definitions.—The term:
   95         (3)(1) “Tuition” means the basic fee charged to a student
   96  for instruction provided by a public postsecondary educational
   97  institution in this state. A charge for any other purpose may
   98  shall not be included within this fee.
   99         (1)(2) “Out-of-state fee” means the additional fee for
  100  instruction provided by a public postsecondary educational
  101  institution in this state, which fee is charged to a student who
  102  does not qualify for the in-state tuition rate pursuant to s.
  103  1009.21. A charge for any other purpose may shall not be
  104  included within this fee.
  105         (2) “Student default risk index” means an institution’s
  106  cohort default rate multiplied by the percentage of students who
  107  have student loans at that institution.
  108         (4)(3) “Tuition differential” means the supplemental fee
  109  charged to a student by a public university in this state
  110  pursuant to s. 1009.24(16).
  111         Section 4. Subsection (3) of section 1009.89, Florida
  112  Statutes, is amended to read:
  113         1009.89 The William L. Boyd, IV, Florida resident access
  114  grants.—
  115         (3) The department shall issue through the program a
  116  William L. Boyd, IV, Florida resident access grant to any full
  117  time degree-seeking undergraduate student registered at an
  118  independent nonprofit college or university which is located in
  119  and chartered by the state; which is accredited by the
  120  Commission on Colleges of the Southern Association of Colleges
  121  and Schools; which grants baccalaureate degrees; which is not a
  122  state university or Florida College System institution; and
  123  which has a secular purpose, so long as the receipt of state aid
  124  by students at the institution would not have the primary effect
  125  of advancing or impeding religion or result in an excessive
  126  entanglement between the state and any religious sect. Any
  127  independent college or university that was eligible to receive
  128  tuition vouchers on January 1, 1989, and which continues to meet
  129  the criteria under which its eligibility was established, shall
  130  remain eligible to receive William L. Boyd, IV, Florida resident
  131  access grant payments. An eligible institution whose student
  132  default risk index exceeds 20 percent is ineligible to receive a
  133  William L. Boyd, IV, Florida resident access grant payment for
  134  an incoming student until the institution’s student default risk
  135  index declines to 20 percent or less.
  136         Section 5. Subsection (3) of section 1009.891, Florida
  137  Statutes, is amended to read:
  138         1009.891 The Access to Better Learning and Education Grant
  139  Program.—
  140         (3) The department shall issue an access grant to any full
  141  time student seeking a baccalaureate degree who is registered at
  142  a for-profit college or university that is located in and
  143  chartered by the state and that is accredited by the Commission
  144  on Colleges of the Southern Association of Colleges and Schools
  145  or who is registered at a nonprofit college or university that
  146  is chartered out of the state, that has been located in the
  147  state for 10 years or more, and that is accredited by the
  148  Commission on Colleges of the Southern Association of Colleges
  149  and Schools, the Middle States Association of Colleges and
  150  Schools, the North Central Association of Colleges and Schools,
  151  or the New England Association of Colleges and Schools; that
  152  grants baccalaureate degrees; that is not a state university or
  153  Florida College System institution; and that has a secular
  154  purpose, if the receipt of state aid by students at the
  155  institution would not have the primary effect of advancing or
  156  impeding religion or result in an excessive entanglement between
  157  the state and any religious sect. Institutions eligible for the
  158  Access to Better Learning and Education Grant Program in the
  159  initial year of funding shall include only those for-profit
  160  colleges or universities identified in this subsection.
  161  Nonprofit colleges or universities identified in this subsection
  162  shall be eligible for financial support in the second year of
  163  funding. An eligible institution whose student default risk
  164  index exceeds 20 percent shall be ineligible to receive an
  165  Access to Better Learning and Education Grant Program payment
  166  for an incoming student until the institution’s student default
  167  risk index declines to 20 percent or less.
  168         Section 6. Section 1009.965, Florida Statutes, is created
  169  to read:
  170         1009.965 Student Loan Debt Advisory Council.—There is
  171  established within the department a Student Loan Debt Advisory
  172  Council, which is an advisory council as defined in s. 20.03.
  173         (1) MEETINGS; ORGANIZATION.—
  174         (a) The council shall consist of nine members, five of whom
  175  are appointed by the Governor, two of whom are appointed by the
  176  President of the Senate, and two of whom are appointed by the
  177  Speaker of the House of Representatives. The council members
  178  shall serve 4-year terms, except that for the purpose of
  179  providing staggered terms, the Governor, the President of the
  180  Senate, and the Speaker of the House of Representatives
  181  initially shall each appoint one member to serve a 2-year term,
  182  and the Governor shall appoint at least one member to serve a 3
  183  year term. All other initial appointments and any subsequent
  184  appointments are for 4-year terms.
  185         (b) The council shall adopt internal organizational
  186  procedures as necessary for its efficient organization which
  187  must, at a minimum, require the council to elect a chair and
  188  vice chair whose duties shall be established by the council.
  189         (c) The department shall provide the staff, information,
  190  and other assistance reasonably necessary to assist the council
  191  in carrying out its responsibilities.
  192         (d) Members of the council serve without compensation, but
  193  may receive reimbursement as provided in s. 112.061, for travel
  194  and other necessary expenses incurred in the performance of
  195  their official duties.
  196         (e) The department shall establish a time and place for
  197  regular meetings of the council. The council must meet at least
  198  twice a year.
  199         (2) DUTIES.—The council shall compile and review
  200  information regarding an institution’s student default risk
  201  index and student loan rates, repayment plans, default rates,
  202  and monthly loan payment amounts at public and nonpublic
  203  postsecondary institutions in this state.
  204         (3) REPORT.—By December 1 of each year, the council shall
  205  prepare a written report for the Governor, the President of the
  206  Senate, and the Speaker of the House of Representatives
  207  containing an accounting of its activities and recommending
  208  policies, priorities, and objectives to help reduce the burden
  209  of student loan debt in this state.
  210         Section 7. The Board of Governors shall consider an
  211  institution’s student default risk index in the board’s
  212  Performance Based Funding Model.
  213         Section 8. The Office of Program Policy Analysis and
  214  Government Accountability (OPPAGA) shall conduct a study of the
  215  effectiveness of the Florida Bright Futures Scholarship Program
  216  established pursuant to ss. 1009.53-1009.538, the William L.
  217  Boyd, IV, Florida Resident Access Grant Program, and the Access
  218  to Better Learning and Education Grant Program. OPPAGA shall
  219  submit the results of the study to the Governor, the President
  220  of the Senate, and the Speaker of the House of Representatives
  221  no later than July 2, 2016.
  222         Section 9. This act shall take effect July 1, 2015.