Florida Senate - 2014                                    SB 1400
       
       
        
       By Senator Latvala
       
       
       
       
       
       20-01177C-14                                          20141400__
    1                        A bill to be entitled                      
    2         An act relating to postsecondary student tuition;
    3         amending s. 1009.21, F.S.; redefining the terms
    4         “dependent child” and “parent”; revising certain
    5         residency requirements for a dependent child;
    6         prohibiting denial of classification as a resident for
    7         tuition purposes based on certain immigration status;
    8         revising requirements for documentation of residency;
    9         revising requirements relating to classification or
   10         reclassification as a resident for tuition purposes
   11         based on marriage; revising requirements relating to
   12         reevaluation of classification as a resident for
   13         tuition purposes; providing that certain veterans of
   14         the Armed Services of the United States, persons who
   15         receive certain tuition exemptions or waivers, and
   16         students who meet certain graduation, enrollment, and
   17         residency documentation requirements shall be
   18         classified as residents for tuition purposes;
   19         providing for the adoption of rules and regulations;
   20         amending ss. 1009.22 and 1009.23, F.S.; revising the
   21         standard tuition and out-of-state fees for workforce
   22         education postsecondary programs leading to certain
   23         certificates and diplomas and certain other programs
   24         at Florida College System institutions; deleting a
   25         provision related to an increase of tuition and out
   26         of-state fees at a rate equal to inflation; deleting
   27         the requirement of the Office of the Economic and
   28         Demographic Research to annually report the rate of
   29         inflation to the Governor, the Legislature, and the
   30         State Board of Education; deleting the definition of
   31         the term “rate of inflation”; amending s. 1009.24,
   32         F.S.; deleting a provision related to an increase of
   33         the resident undergraduate tuition at state
   34         universities at a rate equal to inflation; deleting
   35         the requirement of the Office of the Economic and
   36         Demographic Research to annually report the rate of
   37         inflation to the Governor, the Legislature, and the
   38         Board of Governors; deleting the definition of the
   39         term “rate of inflation”; conforming provisions to
   40         changes made by the act; prohibiting a state
   41         university board of trustees from establishing or
   42         increasing the tuition differential for undergraduate
   43         courses; amending s. 1009.98, F.S.; redefining the
   44         term “tuition differential”; revising the purchase
   45         date of an advance payment contract as it relates to
   46         the amount paid by the Florida Prepaid College Board
   47         to a state university on behalf of a qualified
   48         beneficiary; prohibiting the amount of the aggregate
   49         sum of registration fees, the tuition differential,
   50         and local fees paid by the board to a state university
   51         on behalf of a qualified beneficiary of an advance
   52         payment contract from exceeding a certain percentage
   53         of the amount charged by the state university for the
   54         aggregate sum of those fees; prohibiting the amount of
   55         the dormitory fees paid for by the board to a state
   56         university on behalf of a qualified beneficiary of an
   57         advance payment contract from exceeding a certain
   58         percentage of the amount charged by the state
   59         university for those fees; conforming provisions to
   60         changes made by the act; providing an effective date.
   61          
   62  Be It Enacted by the Legislature of the State of Florida:
   63  
   64         Section 1. Paragraphs (a) and (f) of subsection (1),
   65  paragraph (b) of subsection (2), paragraph (c) of subsection
   66  (3), subsections (4) and (5), paragraph (d) of subsection (6),
   67  and subsections (8), (10), and (13) of section 1009.21, Florida
   68  Statutes, are amended, and paragraph (d) is added to subsection
   69  (2) of that section, to read:
   70         1009.21 Determination of resident status for tuition
   71  purposes.—Students shall be classified as residents or
   72  nonresidents for the purpose of assessing tuition in
   73  postsecondary educational programs offered by charter technical
   74  career centers or career centers operated by school districts,
   75  in Florida College System institutions, and in state
   76  universities.
   77         (1) As used in this section, the term:
   78         (a) “Dependent child” means any person, whether or not
   79  living with his or her parent, who is eligible to be claimed by
   80  his or her parent as a dependent under the federal income tax
   81  code or who is not deemed independent for federal financial aid
   82  purposes.
   83         (f) “Parent” means the natural or adoptive parent,
   84  stepparent, or legal guardian of a dependent child.
   85         (2)
   86         (b) However, with respect to a dependent child living with
   87  an adult relative other than the child’s parent, such child may
   88  qualify as a resident for tuition purposes if the adult relative
   89  is a legal resident who has maintained legal residence in this
   90  state for at least 12 consecutive months immediately before
   91  prior to the child’s initial enrollment in an institution of
   92  higher education, provided the child has resided continuously
   93  with such relative for the 3 5 years immediately before prior to
   94  the child’s initial enrollment in an institution of higher
   95  education, during which time the adult relative has exercised
   96  day-to-day care, supervision, and control of the child.
   97         (d) A dependent child who is a United States citizen may
   98  not be denied classification as a resident for tuition purposes
   99  based solely upon the immigration status of his or her parent.
  100         (3)
  101         (c) Each institution of higher education shall
  102  affirmatively determine that an applicant who has been granted
  103  admission to that institution as a Florida resident meets the
  104  residency requirements of this section at the time of initial
  105  enrollment. The residency determination must be documented by
  106  the submission of written or electronic verification that
  107  includes two or more of the documents identified in this
  108  paragraph. Verification of the documents listed in sub
  109  subparagraphs 1.a.-d. may be satisfied by submission of an
  110  affidavit by the person claiming residency. No single piece of
  111  evidence shall be conclusive.
  112         1. The documents must include at least one of the
  113  following:
  114         a. A Florida voter information voter’s registration card.
  115         b. A Florida driver driver’s license.
  116         c. A State of Florida identification card.
  117         d. A Florida vehicle registration.
  118         e. Proof of a permanent home in Florida which is occupied
  119  as a primary residence by the individual or by the individual’s
  120  parent if the individual is a dependent child.
  121         f. Proof of a homestead exemption in Florida.
  122         g. Transcripts from a Florida high school for multiple
  123  years if the Florida high school diploma or GED was earned
  124  within the last 12 months.
  125         h. Proof of permanent full-time employment in Florida for
  126  at least 30 hours per week for a 12-month period.
  127         2. The documents may include one or more of the following:
  128         a. A declaration of domicile in Florida.
  129         b. A Florida professional or occupational license.
  130         c. Florida incorporation.
  131         d. A document evidencing family ties in Florida.
  132         e. Proof of membership in a Florida-based charitable or
  133  professional organization.
  134         f. Any other documentation that supports the student’s
  135  request for resident status, including, but not limited to,
  136  utility bills and proof of 12 consecutive months of payments; a
  137  lease agreement and proof of 12 consecutive months of payments;
  138  or an official state, federal, or court document evidencing
  139  legal ties to Florida.
  140         (4) With respect to a dependent child, the legal residence
  141  of the dependent child’s parent or parents is prima facie
  142  evidence of the dependent child’s legal residence, which
  143  evidence may be reinforced or rebutted, relative to the age and
  144  general circumstances of the dependent child, by the other
  145  evidence of legal residence required of or presented by the
  146  dependent child. However, the legal residence of a dependent
  147  child’s parent or parents who are domiciled outside this state
  148  is not prima facie evidence of the dependent child’s legal
  149  residence if that dependent child has lived in this state for 3
  150  5 consecutive years before prior to enrolling or reregistering
  151  at the institution of higher education at which resident status
  152  for tuition purposes is sought.
  153         (5) A person who physically resides in this state may be
  154  classified as a resident for tuition purposes if he or she
  155  marries a person who meets the 12-month residency requirement
  156  under subsection (2) and otherwise qualifies as a resident for
  157  tuition purposes under this section In making a domiciliary
  158  determination related to the classification of a person as a
  159  resident or nonresident for tuition purposes, the domicile of a
  160  married person, irrespective of sex, shall be determined, as in
  161  the case of an unmarried person, by reference to all relevant
  162  evidence of domiciliary intent. For the purposes of this
  163  section:
  164         (a) A person shall not be precluded from establishing or
  165  maintaining legal residence in this state and subsequently
  166  qualifying or continuing to qualify as a resident for tuition
  167  purposes solely by reason of marriage to a person domiciled
  168  outside this state, even when that person’s spouse continues to
  169  be domiciled outside of this state, provided such person
  170  maintains his or her legal residence in this state.
  171         (b) A person shall not be deemed to have established or
  172  maintained a legal residence in this state and subsequently to
  173  have qualified or continued to qualify as a resident for tuition
  174  purposes solely by reason of marriage to a person domiciled in
  175  this state.
  176         (c) In determining the domicile of a married person,
  177  irrespective of sex, the fact of the marriage and the place of
  178  domicile of such person’s spouse shall be deemed relevant
  179  evidence to be considered in ascertaining domiciliary intent.
  180         (6)
  181         (d) A person classified as a nonresident for tuition
  182  purposes may be reclassified as a resident by subsequently
  183  marrying a person who meets the criteria to establish residency
  184  for tuition purposes. In order to be reclassified, a person must
  185  submit all of the following:
  186         1. Evidence of his or her own physical residence in this
  187  state.
  188         2. Evidence of marriage to a person who qualifies as a
  189  resident for tuition purposes under this section.
  190         3. Documentation to support his or her spouse’s residency
  191  classification. A person who is classified as a nonresident for
  192  tuition purposes and who marries a legal resident of the state
  193  or marries a person who becomes a legal resident of the state
  194  may, upon becoming a legal resident of the state, become
  195  eligible for reclassification as a resident for tuition purposes
  196  upon submitting evidence of his or her own legal residency in
  197  the state, evidence of his or her marriage to a person who is a
  198  legal resident of the state, and evidence of the spouse’s legal
  199  residence in the state for at least 12 consecutive months
  200  immediately preceding the application for reclassification.
  201         (8) After a student has been classified as a resident for
  202  tuition purposes, an institution of higher education is not
  203  required to reevaluate the classification unless inconsistent
  204  information suggests that an erroneous classification was made
  205  or the student breaks enrollment from the institution for a
  206  period of 12 months or longer. A person who has been properly
  207  classified as a resident for tuition purposes but who, while
  208  enrolled in an institution of higher education in this state,
  209  loses his or her resident tuition status because the person or,
  210  if he or she is a dependent child, the person’s parent or
  211  parents establish domicile or legal residence elsewhere shall
  212  continue to enjoy the in-state tuition rate for a statutory
  213  grace period, which period shall be measured from the date on
  214  which the circumstances arose that culminated in the loss of
  215  resident tuition status and shall continue for 12 months.
  216  However, if the 12-month grace period ends during a semester or
  217  academic term for which such former resident is enrolled, such
  218  grace period shall be extended to the end of that semester or
  219  academic term.
  220         (10) The following persons shall be classified as residents
  221  for tuition purposes:
  222         (a) Active duty members of the Armed Services of the United
  223  States residing or stationed in this state, their spouses, and
  224  dependent children, and active drilling members of the Florida
  225  National Guard.
  226         (b) Active duty members of the Armed Services of the United
  227  States and their spouses and dependents attending a Florida
  228  College System institution or state university within 50 miles
  229  of the military establishment where they are stationed, if such
  230  military establishment is within a county contiguous to Florida.
  231         (c) Veterans of the Armed Services of the United States,
  232  including reserve components thereof, who were honorably
  233  discharged and who physically reside in this state while
  234  enrolled in an institution of higher education.
  235         (d)(c) United States citizens living on the Isthmus of
  236  Panama, who have completed 12 consecutive months of college work
  237  at the Florida State University Panama Canal Branch, and their
  238  spouses and dependent children.
  239         (e)(d) Full-time instructional and administrative personnel
  240  employed by state public schools and institutions of higher
  241  education and their spouses and dependent children.
  242         (f)(e) Students from Latin America and the Caribbean who
  243  receive scholarships from the federal or state government. Any
  244  student classified pursuant to this paragraph shall attend, on a
  245  full-time basis, a Florida institution of higher education.
  246         (g)(f) Southern Regional Education Board’s Academic Common
  247  Market graduate students attending Florida’s state universities.
  248         (h)(g) Full-time employees of state agencies or political
  249  subdivisions of the state when the student fees are paid by the
  250  state agency or political subdivision for the purpose of job
  251  related law enforcement or corrections training.
  252         (i)(h) McKnight Doctoral Fellows and Finalists who are
  253  United States citizens.
  254         (j)(i) United States citizens living outside the United
  255  States who are teaching at a Department of Defense Dependent
  256  School or in an American International School and who enroll in
  257  a graduate level education program which leads to a Florida
  258  teaching certificate.
  259         (k)(j) Active duty members of the Canadian military
  260  residing or stationed in this state under the North American Air
  261  Defense (NORAD) agreement, and their spouses and dependent
  262  children, attending a Florida College System institution or
  263  state university within 50 miles of the military establishment
  264  where they are stationed.
  265         (l)(k) Active duty members of a foreign nation’s military
  266  who are serving as liaison officers and are residing or
  267  stationed in this state, and their spouses and dependent
  268  children, attending a Florida College System institution or
  269  state university within 50 miles of the military establishment
  270  where the foreign liaison officer is stationed.
  271         (m) Persons who receive a tuition exemption or waiver under
  272  s. 112.19(3), s. 112.191(3), s. 961.06(1)(b), s. 1009.25(1)(c),
  273  (d), or (f), or s. 1009.26(8) or (10).
  274         (n) Students who attend a secondary school in this state
  275  for 3 consecutive years immediately before high school
  276  graduation, apply for enrollment in an institution of higher
  277  education within 24 months after graduation, and submit an
  278  official Florida high school transcript as documentary evidence
  279  of residence in this state. Students who are classified as
  280  residents for tuition purposes under this paragraph must also
  281  provide proof of United States citizenship to be eligible for
  282  state financial aid pursuant to s. 1009.40.
  283         (13) The State Board of Education shall adopt rules, and
  284  the Board of Governors shall adopt regulations, rules to
  285  implement this section.
  286         Section 2. Paragraphs (c) through (g) of subsection (3) of
  287  section 1009.22, Florida Statutes, are amended to read:
  288         1009.22 Workforce education postsecondary student fees.—
  289         (3)
  290         (c) Effective July 1, 2014 2011, for programs leading to a
  291  career certificate or an applied technology diploma, the
  292  standard tuition shall be $2.33 $2.22 per contact hour for
  293  residents and nonresidents and the out-of-state fee shall be
  294  $6.99 $6.66 per contact hour. For adult general education
  295  programs, a block tuition of $45 per half year or $30 per term
  296  shall be assessed for residents and nonresidents, and the out
  297  of-state fee shall be $135 per half year or $90 per term. Each
  298  district school board and Florida College System institution
  299  board of trustees shall adopt policies and procedures for the
  300  collection of and accounting for the expenditure of the block
  301  tuition. All funds received from the block tuition shall be used
  302  only for adult general education programs. Students enrolled in
  303  adult general education programs may not be assessed the fees
  304  authorized in subsection (5), subsection (6), or subsection (7).
  305         (d) Beginning with the 2008-2009 fiscal year and each year
  306  thereafter, the tuition and the out-of-state fee per contact
  307  hour shall increase at the beginning of each fall semester at a
  308  rate equal to inflation, unless otherwise provided in the
  309  General Appropriations Act. The Office of Economic and
  310  Demographic Research shall report the rate of inflation to the
  311  President of the Senate, the Speaker of the House of
  312  Representatives, the Governor, and the State Board of Education
  313  each year prior to March 1. For purposes of this paragraph, the
  314  rate of inflation shall be defined as the rate of the 12-month
  315  percentage change in the Consumer Price Index for All Urban
  316  Consumers, U.S. City Average, All Items, or successor reports as
  317  reported by the United States Department of Labor, Bureau of
  318  Labor Statistics, or its successor for December of the previous
  319  year. In the event the percentage change is negative, the
  320  tuition and out-of-state fee shall remain at the same level as
  321  the prior fiscal year.
  322         (d)(e) Each district school board and each Florida College
  323  System institution board of trustees may adopt tuition and out
  324  of-state fees that may vary no more than 5 percent below and 5
  325  percent above the combined total of the standard tuition and
  326  out-of-state fees established in paragraph (c).
  327         (e)(f) The maximum increase in resident tuition for any
  328  school district or Florida College System institution during the
  329  2007-2008 fiscal year shall be 5 percent over the tuition
  330  charged during the 2006-2007 fiscal year.
  331         (f)(g) The State Board of Education may adopt, by rule, the
  332  definitions and procedures that district school boards and
  333  Florida College System institution boards of trustees shall use
  334  in the calculation of cost borne by students.
  335         Section 3. Subsection (3) of section 1009.23, Florida
  336  Statutes, is amended to read:
  337         1009.23 Florida College System institution student fees.—
  338         (3)(a) Effective July 1, 2014 2011, for advanced and
  339  professional, postsecondary vocational, developmental education,
  340  and educator preparation institute programs, the standard
  341  tuition shall be $71.98 $68.56 per credit hour for residents and
  342  nonresidents, and the out-of-state fee shall be $215.94 $205.82
  343  per credit hour.
  344         (b) Effective July 1, 2014 2011, for baccalaureate degree
  345  programs, the following tuition and fee rates shall apply:
  346         1. The tuition shall be $91.79 $87.42 per credit hour for
  347  students who are residents for tuition purposes.
  348         2. The sum of the tuition and the out-of-state fee per
  349  credit hour for students who are nonresidents for tuition
  350  purposes shall be no more than 85 percent of the sum of the
  351  tuition and the out-of-state fee at the state university nearest
  352  the Florida College System institution.
  353         (c) Beginning with the 2008-2009 fiscal year and each year
  354  thereafter, the tuition and the out-of-state fee shall increase
  355  at the beginning of each fall semester at a rate equal to
  356  inflation, unless otherwise provided in the General
  357  Appropriations Act. The Office of Economic and Demographic
  358  Research shall report the rate of inflation to the President of
  359  the Senate, the Speaker of the House of Representatives, the
  360  Governor, and the State Board of Education each year prior to
  361  March 1. For purposes of this paragraph, the rate of inflation
  362  shall be defined as the rate of the 12-month percentage change
  363  in the Consumer Price Index for All Urban Consumers, U.S. City
  364  Average, All Items, or successor reports as reported by the
  365  United States Department of Labor, Bureau of Labor Statistics,
  366  or its successor for December of the previous year. In the event
  367  the percentage change is negative, the tuition and the out-of
  368  state fee per credit hour shall remain at the same levels as the
  369  prior fiscal year.
  370         Section 4. Paragraphs (a), (b), and (e) of subsection (4)
  371  of section 1009.24, Florida Statutes, are amended, and paragraph
  372  (g) is added to subsection (16) of that section, to read:
  373         1009.24 State university student fees.—
  374         (4)(a) Effective July 1, 2014 2011, the resident
  375  undergraduate tuition for lower-level and upper-level coursework
  376  shall be $103.32 per credit hour.
  377         (b) Beginning with the 2008-2009 fiscal year and each year
  378  thereafter, the resident undergraduate tuition per credit hour
  379  shall increase at the beginning of each fall semester at a rate
  380  equal to inflation, unless otherwise provided in the General
  381  Appropriations Act. The Office of Economic and Demographic
  382  Research shall report the rate of inflation to the President of
  383  the Senate, the Speaker of the House of Representatives, the
  384  Governor, and the Board of Governors each year prior to March 1.
  385  For purposes of this paragraph, the rate of inflation shall be
  386  defined as the rate of the 12-month percentage change in the
  387  Consumer Price Index for All Urban Consumers, U.S. City Average,
  388  All Items, or successor reports as reported by the United States
  389  Department of Labor, Bureau of Labor Statistics, or its
  390  successor for December of the previous year. In the event the
  391  percentage change is negative, the resident undergraduate
  392  tuition shall remain at the same level as the prior fiscal year.
  393         (d)(e) The sum of the activity and service, health, and
  394  athletic fees a student is required to pay to register for a
  395  course may shall not exceed 40 percent of the tuition
  396  established in law or in the General Appropriations Act. No
  397  university shall be required to lower any fee in effect on the
  398  effective date of this act in order to comply with this
  399  subsection. Within the 40 percent cap, universities may not
  400  increase the aggregate sum of activity and service, health, and
  401  athletic fees more than 5 percent per year, or the same
  402  percentage increase in tuition authorized under paragraph (b),
  403  whichever is greater, unless specifically authorized in law or
  404  in the General Appropriations Act. A university may increase its
  405  athletic fee to defray the costs associated with changing
  406  National Collegiate Athletic Association divisions. Any such
  407  increase in the athletic fee may exceed both the 40 percent cap
  408  and the 5 percent cap imposed by this subsection. Any such
  409  increase must be approved by the athletic fee committee in the
  410  process outlined in subsection (12) and may not cannot exceed $2
  411  per credit hour. Notwithstanding the provisions of ss. 1009.534,
  412  1009.535, and 1009.536, that portion of any increase in an
  413  athletic fee pursuant to this subsection which that causes the
  414  sum of the activity and service, health, and athletic fees to
  415  exceed the 40 percent cap or the annual increase in such fees to
  416  exceed the 5 percent cap may shall not be included in
  417  calculating the amount a student receives for a Florida Academic
  418  Scholars award, a Florida Medallion Scholars award, or a Florida
  419  Gold Seal Vocational Scholars award. Notwithstanding this
  420  paragraph and subject to approval by the board of trustees, each
  421  state university may is authorized to exceed the 5 percent 5
  422  percent cap on the annual increase to the aggregate sum of
  423  activity and service, health, and athletic fees for the 2010
  424  2011 fiscal year. Any such increase may shall not exceed 15
  425  percent or the amount required to reach the 2009-2010 fiscal
  426  year statewide average for the aggregate sum of activity and
  427  service, health, and athletic fees at the main campuses,
  428  whichever is greater. The aggregate sum of the activity and
  429  service, health, and athletic fees may shall not exceed 40
  430  percent of tuition. Any increase in the activity and service
  431  fee, health fee, or athletic fee must be approved by the
  432  appropriate fee committee pursuant to subsection (10),
  433  subsection (11), or subsection (12).
  434         (16) Each university board of trustees may establish a
  435  tuition differential for undergraduate courses upon receipt of
  436  approval from the Board of Governors. The tuition differential
  437  shall promote improvements in the quality of undergraduate
  438  education and shall provide financial aid to undergraduate
  439  students who exhibit financial need.
  440         (g) Notwithstanding this subsection, effective July 1,
  441  2014, a state university board of trustees may not establish or
  442  increase a tuition differential for undergraduate courses as
  443  provided for in this subsection.
  444         Section 5. Subsection (10) of section 1009.98, Florida
  445  Statutes, is amended to read:
  446         1009.98 Stanley G. Tate Florida Prepaid College Program.—
  447         (10) PAYMENTS ON BEHALF OF QUALIFIED BENEFICIARIES.—
  448         (a) As used in this subsection, the term:
  449         1. “Actuarial reserve” means the amount by which the
  450  expected value of the assets exceeds exceed the expected value
  451  of the liabilities of the trust fund.
  452         2. “Dormitory fees” means the fees included under advance
  453  payment contracts pursuant to paragraph (2)(d).
  454         3. “Fiscal year” means the fiscal year of the state
  455  pursuant to s. 215.01.
  456         4. “Local fees” means the fees covered by an advance
  457  payment contract provided pursuant to subparagraph (2)(b)2.
  458         5. “Tuition differential” means the fee covered by advance
  459  payment contracts sold pursuant to subparagraph (2)(b)3. The
  460  base rate for the tuition differential fee for the 2012-2013
  461  fiscal year is established at $37.03 per credit hour. The base
  462  rate for the tuition differential in subsequent years is the
  463  amount assessed paid by the board for the tuition differential
  464  for the preceding year adjusted pursuant to subparagraph (b)2.
  465         (b) Effective with the 2009-2010 academic year and
  466  thereafter, and notwithstanding the provisions of s. 1009.24,
  467  the amount paid by the board to any state university on behalf
  468  of a qualified beneficiary of an advance payment contract whose
  469  contract was purchased before July 1, 2024 2009, shall be:
  470         1. As to registration fees, if the actuarial reserve is
  471  less than 5 percent of the expected liabilities of the trust
  472  fund, the board shall pay the state universities 5.5 percent
  473  above the amount assessed for registration fees in the preceding
  474  fiscal year. If the actuarial reserve is between 5 percent and 6
  475  percent of the expected liabilities of the trust fund, the board
  476  shall pay the state universities 6 percent above the amount
  477  assessed for registration fees in the preceding fiscal year. If
  478  the actuarial reserve is between 6 percent and 7.5 percent of
  479  the expected liabilities of the trust fund, the board shall pay
  480  the state universities 6.5 percent above the amount assessed for
  481  registration fees in the preceding fiscal year. If the actuarial
  482  reserve is equal to or greater than 7.5 percent of the expected
  483  liabilities of the trust fund, the board shall pay the state
  484  universities 7 percent above the amount assessed for
  485  registration fees in the preceding fiscal year, whichever is
  486  greater.
  487         2. As to the tuition differential, if the actuarial reserve
  488  is less than 5 percent of the expected liabilities of the trust
  489  fund, the board shall pay the state universities 5.5 percent
  490  above the base rate for the tuition differential fee in the
  491  preceding fiscal year. If the actuarial reserve is between 5
  492  percent and 6 percent of the expected liabilities of the trust
  493  fund, the board shall pay the state universities 6 percent above
  494  the base rate for the tuition differential fee in the preceding
  495  fiscal year. If the actuarial reserve is between 6 percent and
  496  7.5 percent of the expected liabilities of the trust fund, the
  497  board shall pay the state universities 6.5 percent above the
  498  base rate for the tuition differential fee in the preceding
  499  fiscal year. If the actuarial reserve is equal to or greater
  500  than 7.5 percent of the expected liabilities of the trust fund,
  501  the board shall pay the state universities 7 percent above the
  502  base rate for the tuition differential fee in the preceding
  503  fiscal year.
  504         3. As to local fees, the board shall pay the state
  505  universities 5 percent above the amount assessed for local fees
  506  in the preceding fiscal year.
  507         4. As to dormitory fees, the board shall pay the state
  508  universities 6 percent above the amount assessed for dormitory
  509  fees in the preceding fiscal year.
  510         5. Qualified beneficiaries of advance payment contracts
  511  purchased before July 1, 2007, are exempt from paying any
  512  tuition differential fee.
  513         (c) Notwithstanding the amount assessed for registration
  514  fees, the tuition differential, or local fees, the amount paid
  515  by the board to any state university on behalf of a qualified
  516  beneficiary of an advanced payment contract with respect to the
  517  aggregate sum of those fees may not exceed 100 percent of the
  518  amount charged by the state university for the aggregate sum of
  519  those fees.
  520         (d) Notwithstanding the amount assessed for dormitory fees,
  521  the amount paid by the board to any state university on behalf
  522  of a qualified beneficiary of an advanced payment contract with
  523  respect to that fee may not exceed 100 percent of the amount
  524  charged by the state university for that fee.
  525         (e)(c) The board shall pay state universities the actual
  526  amount charged assessed in accordance with law for registration
  527  fees, the tuition differential, local fees, and dormitory fees
  528  for advance payment contracts purchased on or after July 1, 2024
  529  2009.
  530         (f)(d) The board shall annually evaluate or cause to be
  531  evaluated the actuarial soundness of the trust fund.
  532         Section 6. This act shall take effect July 1, 2014.