Florida Senate - 2015                                     SB 642
       By Senator Benacquisto
       30-01015B-15                                           2015642__
    1                        A bill to be entitled                      
    2         An act relating to individuals with disabilities;
    3         creating s. 1009.985, F.S.; providing a short title;
    4         creating s. 1009.986, F.S.; providing legislative
    5         intent; defining terms; requiring the Florida Prepaid
    6         College Board to establish a direct-support
    7         organization known as “Florida ABLE, Inc.”; specifying
    8         requirements for the registration, organization,
    9         incorporation, and operation of the organization;
   10         requiring the organization to operate under a written
   11         contract with the Florida Prepaid College Board;
   12         specifying provisions that must be included in the
   13         contract; requiring the organization to provide for an
   14         annual financial audit and supplemental data under
   15         certain circumstances; establishing and providing for
   16         the membership of a board of directors for the
   17         organization; providing limits on a director’s
   18         authority; specifying meeting and quorum requirements;
   19         prohibiting compensation for the service of directors
   20         and other specified members; authorizing specified
   21         reimbursement for the travel expenses of directors and
   22         specified members of the organization; authorizing the
   23         organization to use certain services, property, and
   24         facilities of the Florida Prepaid College Board;
   25         authorizing the organization to establish the Florida
   26         ABLE program; specifying requirements that must be met
   27         before implementation of the program; requiring that
   28         the organization develop a participation agreement
   29         that contains specified provisions; authorizing other
   30         provisions that may be included in the agreement;
   31         providing for the amendment of the agreement under
   32         certain circumstances; providing for the use of the
   33         balance of an abandoned ABLE account by the
   34         organization; providing that contracts and
   35         participation agreements entered into by the
   36         organization do not constitute a debt or obligation of
   37         the state; authorizing the organization to contract
   38         with other states for specified purposes; providing
   39         for termination of the program under certain
   40         circumstances and for the disposition of certain
   41         assets upon termination; prohibiting the state from
   42         limiting or altering the specified vested rights of
   43         designated beneficiaries except under specified
   44         circumstances; requiring the organization to establish
   45         a comprehensive investment plan for the program;
   46         exempting funds paid into the program’s trust fund
   47         from the claims of specified creditors; providing for
   48         recovery by Medicaid of certain medical assistance
   49         provided to a deceased designated beneficiary;
   50         providing for the distribution of the balance of a
   51         deceased designated beneficiary’s ABLE account;
   52         requiring the organization to provide specified data
   53         and files to the Agency for Health Care
   54         Administration; providing that specified payroll
   55         deduction authority applies to the Florida Prepaid
   56         College Board and the organization for the purpose of
   57         administering the program; requiring the organization
   58         to submit an annual report to specified entities;
   59         requiring the Florida Prepaid College Board to adopt
   60         rules; providing that the section is repealed on a
   61         specified date; amending s. 222.22, F.S.; providing
   62         that specified moneys, assets, and income of a
   63         qualified ABLE program, including the Florida ABLE
   64         program, are not subject to attachment, levy,
   65         garnishment, or certain legal process in favor of
   66         certain creditors or claimants; amending s. 1009.971,
   67         F.S.; conforming provisions to changes made by the
   68         act; providing an effective date.
   70  Be It Enacted by the Legislature of the State of Florida:
   72         Section 1. Section 1009.985, Florida Statutes, is created
   73  to read:
   74         1009.985 Short title.—Sections 1009.985-1009.988 may be
   75  cited as the “Florida Achieving a Better Life Experience (ABLE)
   76  Act.”
   77         Section 2. Section 1009.986, Florida Statutes, is created
   78  to read:
   79         1009.986 Florida ABLE program.—
   80         (1) LEGISLATIVE INTENT.—It is the intent of the Legislature
   81  to establish a qualified ABLE program in this state which will
   82  encourage and assist the saving of private funds in tax-exempt
   83  accounts in order to pay for the qualified disability expenses
   84  of eligible individuals with disabilities. The Legislature
   85  intends that the qualified ABLE program be implemented in a
   86  manner that is consistent with federal law authorizing the
   87  program and that maximizes program efficiency and effectiveness.
   88         (2) DEFINITIONS.—As used in ss. 1009.986-1009.988, the
   89  term:
   90         (a)“ABLE account” means an account established by an
   91  eligible individual which is owned by the eligible individual
   92  and maintained under the Florida ABLE program.
   93         (b)“Contracting state” means a state that does not have a
   94  qualified ABLE program and that has entered into a contract with
   95  Florida ABLE, Inc., to provide residents of the contracting
   96  state with access to the Florida ABLE program.
   97         (c)“Designated beneficiary” means an eligible individual
   98  who established an ABLE account and is the owner of the account.
   99         (d) Disability certification” has the same meaning as
  100  provided in s. 529A of the Internal Revenue Code.
  101         (e)“Eligible individual” means a resident of this state or
  102  a contracting state:
  103         1. Who is entitled to benefits or disability under Title II
  104  or Title XVI of the Social Security Act for a taxable year and
  105  whose blindness or disability occurred before the date on which
  106  the individual attained the age of 26 years; or
  107         2. For whom a disability certification is filed with the
  108  United States Department of Treasury for the taxable year.
  109         (f)“Florida ABLE program” means the qualified ABLE program
  110  established and maintained under this section by Florida ABLE,
  111  Inc.
  112         (g)“Internal Revenue Code” means the United States
  113  Internal Revenue Code of 1986, as defined in s. 220.03(1), and
  114  regulations adopted pursuant thereto.
  115         (h)“Participation agreement” means the agreement between
  116  Florida ABLE, Inc., and a participant in the Florida ABLE
  117  program.
  118         (i) “Qualified ABLE program” means the program authorized
  119  under s. 529A of the Internal Revenue Code which may be
  120  established by a state, agency, or instrumentality thereof to
  121  allow a person to make contributions for a taxable year to an
  122  ABLE account established for the purpose of meeting the
  123  qualified disability expenses of the designated beneficiary of
  124  the ABLE account.
  125         (j) “Qualified disability expense” has the meaning provided
  126  in s. 529A of the Internal Revenue Code.
  128         (a)The Florida Prepaid College Board shall establish a
  129  direct-support organization to be known as “Florida ABLE, Inc.,”
  130  which is:
  131         1. A Florida not-for-profit corporation registered,
  132  incorporated, organized, and operated in compliance with chapter
  133  617.
  134         2. Organized and operated to receive, hold, invest, and
  135  administer property and to make expenditures for the benefit of
  136  the Florida ABLE program.
  137         (b) Florida ABLE, Inc., shall operate under a written
  138  contract with the Florida Prepaid College Board. The contract
  139  must include, but is not limited to, provisions that:
  140         1. Require the articles of incorporation and bylaws of
  141  Florida ABLE, Inc., to be approved by the Florida Prepaid
  142  College Board.
  143         2.Require Florida ABLE, Inc., to submit an annual budget
  144  for approval by the Florida Prepaid College Board. The budget
  145  must comply with rules adopted by the Florida Prepaid College
  146  Board.
  147         3.Require Florida ABLE, Inc., to pay reasonable
  148  consideration to the Florida Prepaid College Board for products
  149  or services provided directly or indirectly by the Florida
  150  Prepaid College Board.
  151         4. Authorize the Florida Prepaid College Board to solicit
  152  proposals, contract or subcontract, or amend contractual service
  153  agreements of the Florida Prepaid College Board for the benefit
  154  of Florida ABLE, Inc.
  155         5. Authorize the Florida Prepaid College Board to maintain
  156  the website of Florida ABLE, Inc.
  157         6. Require the Florida Prepaid College Board to annually
  158  certify that Florida ABLE, Inc., is complying with the terms of
  159  the contract and acting in a manner consistent with this section
  160  and in the best interest of the state. The certification must be
  161  reported in the official minutes of a meeting of the Florida
  162  Prepaid College Board.
  163         7. Require the reversion of moneys and property to the
  164  Florida Prepaid College Board, or to the state if the Florida
  165  Prepaid College Board ceases to exist, which are held in trust
  166  by Florida ABLE, Inc., for the benefit of the Florida ABLE
  167  program if Florida ABLE, Inc., is no longer approved to operate.
  168         8. Require the disclosure of material provisions in the
  169  contract and of the distinction between the Florida Prepaid
  170  College Board and Florida ABLE, Inc., to donors of gifts,
  171  contributions, or bequests, and the inclusion of such disclosure
  172  on all promotional and fundraising publications.
  173         9. Require the fiscal year for Florida ABLE, Inc., to begin
  174  on July 1 and end on June 30 of the following year.
  175         (c) Florida ABLE, Inc., shall provide for an annual
  176  financial audit in accordance with s. 215.981. The Florida
  177  Prepaid College Board and Auditor General may require Florida
  178  ABLE, Inc., or its independent auditor, to provide any
  179  supplemental data relating to the operation of Florida ABLE,
  180  Inc.
  181         (d)1. The board of directors of Florida ABLE, Inc., shall
  182  consist of:
  183         a. The chair and the executive director of the Florida
  184  Prepaid College Board and the director of the Agency for Persons
  185  with Disabilities. The chair of the Florida Prepaid College
  186  Board shall serve as the chair of the board of directors of
  187  Florida ABLE, Inc.
  188         b. Two individuals who possess knowledge, skill, and
  189  experience in the areas of accounting, risk management, or
  190  investment management, one of whom shall be appointed by the
  191  President of the Senate and one of whom shall be appointed by
  192  the Speaker of the House of Representatives.
  193         c. Two individuals who are advocates of persons with
  194  disabilities, one of whom shall be appointed by the President of
  195  the Senate and one of whom shall be appointed by the Speaker of
  196  the House of Representatives. At least one of the individuals
  197  appointed under this sub-subparagraph must be an advocate of
  198  persons with developmental disabilities, as that term is defined
  199  in s. 393.063.
  200         2. The term of the appointees under sub-subparagraphs 1.b.
  201  and c. shall be 3 years. An appointee may be reappointed for up
  202  to one consecutive term.
  203         3.Unless authorized by the board of directors of Florida
  204  ABLE, Inc., an individual director has no authority to control
  205  or direct the operations of Florida ABLE, Inc., or the actions
  206  of its officers and employees.
  207         4. The board of directors of Florida ABLE, Inc.:
  208         a. Shall meet at least quarterly and at other times upon
  209  the call of the chair.
  210         b. May use any method of telecommunications to conduct, or
  211  establish a quorum at, its meetings or the meetings of a
  212  subcommittee or other subdivision if the public is given proper
  213  notice of the telecommunications meeting and provided reasonable
  214  access to observe and, if appropriate, to participate.
  215         5.A majority of the total current membership of the board
  216  of directors of Florida ABLE, Inc., constitutes a quorum of the
  217  board.
  218         6.Members of the board of directors of Florida ABLE, Inc.,
  219  and the board’s subcommittees or other subdivisions shall serve
  220  without compensation; however, the members may be reimbursed for
  221  reasonable, necessary, and actual travel expenses pursuant to s.
  222  112.061.
  223         (e) Subject to rule adopted by the Florida Prepaid College
  224  Board, Florida ABLE, Inc., may use property, other than money,
  225  facilities, and personal services of the Florida Prepaid College
  226  Board, provided that Florida ABLE, Inc., offers equal employment
  227  opportunities to all persons regardless of race, color,
  228  religion, sex, age, or national origin. As used in this
  229  paragraph, the term “personal services” means use of the Florida
  230  Prepaid College Board’s full-time and part-time personnel,
  231  payroll processing services, and other services prescribed by
  232  rule of the Florida Prepaid College Board.
  233         (4) FLORIDA ABLE PROGRAM.—
  234         (a) Florida ABLE, Inc., is authorized to establish and
  235  administer the Florida ABLE program. Before implementing the
  236  program, Florida ABLE, Inc., must obtain a written opinion from
  237  counsel specializing in:
  238         1. Federal tax matters which indicates that the Florida
  239  ABLE program is designed to comply with s. 529A of the Internal
  240  Revenue Code.
  241         2. Federal securities law which indicates that the Florida
  242  ABLE program and the offering of participation in the program
  243  are designed to comply with applicable federal securities law
  244  and qualify for the available tax exemptions under such law.
  245         (b)Florida ABLE, Inc., must develop a participation
  246  agreement which must state that:
  247         1. The participating agreement is only a debt or obligation
  248  of the Florida ABLE program and the Florida ABLE Trust Fund and,
  249  as provided under paragraph (f), is not a debt or obligation of
  250  the state.
  251         2. Participation in the Florida ABLE program does not
  252  guarantee that sufficient funds will be available to cover all
  253  qualified disability expenses for any designated beneficiary and
  254  does not guarantee the receipt or continuation of any product or
  255  service for the designated beneficiary.
  256         3.The establishment of an ABLE account in violation of
  257  federal law is prohibited.
  258         4.Contributions in excess of the limitations set forth in
  259  s. 529A of the Internal Revenue Code are prohibited.
  260         5.The withdrawal of funds from an ABLE account must comply
  261  with the requirements and procedures established by Florida
  262  ABLE, Inc., for a withdrawal. In establishing the requirements
  263  and procedures, Florida ABLE, Inc., shall provide for
  264  distributions to be made in as efficient and expeditious manner
  265  as is prudent and possible, consistent with the requirements of
  266  s. 529A of the Internal Revenue Code.
  267         6. The state is a creditor of ABLE accounts as, and to the
  268  extent, set forth in s. 529A of the Internal Revenue Code.
  269         7. Material misrepresentations by a party to the
  270  participation agreement, other than Florida ABLE, Inc., in the
  271  application for the participation agreement or in any
  272  communication with Florida ABLE, Inc., regarding the Florida
  273  ABLE program may result in the involuntary liquidation of the
  274  ABLE account. If an account is involuntarily liquidated, the
  275  designated beneficiary is entitled to a refund, subject to any
  276  fees or penalties provided by the participation agreement and
  277  the Internal Revenue Code.
  278         (c) The participation agreement may include provisions
  279  specifying:
  280         1. The requirements and applicable restrictions for opening
  281  an ABLE account.
  282         2. The eligibility requirements for a party to a
  283  participation agreement and the rights of the party.
  284         3. The requirements and applicable restrictions for making
  285  contributions to an ABLE account.
  286         4. The requirements and applicable restrictions for
  287  directing the investment of the contributions or balance of the
  288  ABLE account.
  289         5. The administrative fee and other fees and penalties
  290  applicable to an ABLE account.
  291         6. The terms and conditions under which an ABLE account or
  292  participation agreement may be modified, transferred, or
  293  terminated.
  294         7. The disposition of abandoned ABLE accounts.
  295         8. Other terms and conditions determined by Florida ABLE,
  296  Inc., to be necessary or proper.
  297         (d) The participation agreement may be freely amended
  298  throughout its term for purposes that include, but are not
  299  limited to, allowing a participant to increase or decrease the
  300  level of participation and to change designated beneficiaries
  301  and other matters authorized by this section and s. 529A of the
  302  Internal Revenue Code.
  303         (e) If an ABLE account is determined to be abandoned
  304  pursuant to rules adopted by the Florida Prepaid College Board,
  305  Florida ABLE, Inc., may use the balance of the account to
  306  operate the Florida ABLE program or may transfer the balance to
  307  the Florida Prepaid Tuition Scholarship Program to provide
  308  matching funds for prepaid tuition scholarships for economically
  309  disadvantaged youth under s. 1009.984.
  310         (f) A contract or participation agreement entered into by
  311  or an obligation of Florida ABLE, Inc., on behalf of and for the
  312  benefit of the Florida ABLE program does not constitute a debt
  313  or obligation of the state but is the obligation of the Florida
  314  ABLE program. The state does not have an obligation to a
  315  designated beneficiary or any other person as a result of the
  316  Florida ABLE program. The obligation of the Florida ABLE program
  317  is limited solely to amounts in the Florida ABLE Trust Fund. All
  318  amounts obligated to be paid from the Florida ABLE Trust Fund
  319  are limited to the amounts available for such obligation. The
  320  amounts held in the Florida ABLE program may be disbursed only
  321  in accordance with this section.
  322         (g) Florida ABLE, Inc., may contract with other states to
  323  participate under the rules of another state’s qualified ABLE
  324  program or to authorize the participation of a contracting state
  325  in the Florida ABLE program.
  326         (h) The Florida ABLE program shall continue in existence
  327  until terminated by law. If the state determines that the
  328  program is financially infeasible, the state may terminate the
  329  program. Upon termination, amounts in the Florida ABLE Trust
  330  Fund held for designated beneficiaries shall be returned in
  331  accordance with the participation agreement. Any unclaimed
  332  amounts remaining in the trust fund may be transferred to the
  333  Florida Prepaid Tuition Scholarship Program to provide matching
  334  funds for prepaid tuition scholarships for economically
  335  disadvantaged youth under s. 1009.984.
  336         (i) The state pledges to the designated beneficiaries that
  337  the state will not limit or alter their rights under this
  338  section which are vested in the Florida ABLE program until the
  339  program’s obligations are met and discharged. However, this
  340  paragraph does not preclude such limitation or alteration if
  341  adequate provision is made by law for the protection of the
  342  designated beneficiaries pursuant to the obligations of Florida
  343  ABLE, Inc., and does not preclude termination of the Florida
  344  ABLE program if the state or the Florida Prepaid College Board
  345  determines that the program is not financially feasible. Florida
  346  ABLE, Inc., on behalf of the state, may include this pledge and
  347  undertaking by the state in participation agreements.
  348         (5) COMPREHENSIVE INVESTMENT PLAN.—Florida ABLE, Inc.,
  349  shall establish a comprehensive investment plan for the Florida
  350  ABLE program, subject to the approval of the Florida Prepaid
  351  College Board. The comprehensive investment plan must specify
  352  the investment policies to be used by Florida ABLE, Inc., in its
  353  administration of the program. Florida ABLE, Inc., may place
  354  assets of the program in investment products and in such
  355  proportions as may be designated or approved in the
  356  comprehensive investment plan. Such products shall be
  357  underwritten and offered in compliance with the applicable
  358  federal and state laws or regulations or exemptions therefrom. A
  359  designated beneficiary may not direct the investment of any
  360  contributions to the Florida ABLE program, unless specific fund
  361  options are offered by Florida ABLE, Inc. Directors, officers,
  362  and employees of Florida ABLE, Inc., may enter into
  363  participation agreements, notwithstanding their fiduciary
  364  responsibilities or official duties related to the Florida ABLE
  365  program.
  366         (6) EXEMPTION FROM CLAIMS OF CREDITORS.—Moneys paid into or
  367  out of the Florida ABLE Trust Fund by or on behalf of a
  368  designated beneficiary are exempt, as provided by s. 222.22,
  369  from all claims of creditors of the designated beneficiary if
  370  the participation agreement has not been terminated. Moneys paid
  371  into the Florida ABLE program and benefits accrued through the
  372  program may not be pledged for the purpose of securing a loan.
  374         (a) Upon the death of the designated beneficiary, the
  375  Agency for Health Care Administration or the state Medicaid
  376  program for a contracting state may file a claim with the
  377  Florida ABLE program for the total amount of medical assistance
  378  provided for the designated beneficiary under the Medicaid
  379  program, less any premiums paid by or on behalf of the
  380  designated beneficiary to a Medicaid buy-in program. Funds in
  381  the ABLE account of the deceased designated beneficiary must
  382  first be distributed for qualified disability expenses followed
  383  by distributions for the Medicaid claim authorized under this
  384  paragraph. Any remaining amount shall be distributed as provided
  385  in the participation agreement.
  386         (b)Florida ABLE, Inc., shall provide to the Agency for
  387  Health Care Administration or the agency’s contractor data
  388  files, layouts, data dictionaries, and any other necessary
  389  materials used by Florida ABLE, Inc., to carry out this section.
  390  The exchange of data must occur on a schedule mutually agreed
  391  upon by both parties.
  392         (8) PAYROLL DEDUCTION AUTHORITY.—The payroll deduction
  393  authority provided under s. 1009.975 applies to the Florida
  394  Prepaid College Board and Florida ABLE, Inc., for purposes of
  395  administering this section.
  396         (9) ANNUAL REPORT.—On or before March 31 of each year,
  397  Florida ABLE, Inc., shall prepare or cause to be prepared a
  398  report setting forth in appropriate detail an accounting of the
  399  Florida ABLE program which includes a description of the
  400  financial condition of the program at the close of the fiscal
  401  year. Florida ABLE, Inc., shall submit copies of the report to
  402  the Governor, the President of the Senate, the Speaker of the
  403  House of Representatives, and the minority leaders of the Senate
  404  and the House of Representatives and shall make the report
  405  available to each designated beneficiary. The accounts of the
  406  Florida ABLE program are subject to annual audit by the Auditor
  407  General.
  408         (10) RULES.The Florida Prepaid College Board shall adopt
  409  rules to administer this section. Such rules must include, but
  410  are not limited to:
  411         (a) Specifying the procedures by which Florida ABLE, Inc.,
  412  shall be governed and operate, including requirements for the
  413  budget of Florida ABLE, Inc., and conditions with which Florida
  414  ABLE, Inc., must comply to use property, facilities, or personal
  415  services of the Florida Prepaid College Board.
  416         (b) The procedures for determining that an ABLE account has
  417  been abandoned.
  418         (c) Adoption of provisions determined necessary by the
  419  Florida Prepaid College Board for the Florida ABLE program to
  420  retain its status as a qualified ABLE program or the tax-exempt
  421  status or other similar status of the program or its
  422  participants under the Internal Revenue Code. Florida ABLE,
  423  Inc., shall inform participants in the Florida ABLE program of
  424  changes to the tax or securities status of their interests in
  425  the ABLE program and participation agreements.
  426         (11) REPEAL.—In accordance with s. 20.058, this section is
  427  repealed October 1, 2020, unless reviewed and saved from repeal
  428  by the Legislature.
  429         Section 3. Subsection (5) is added to section 222.22,
  430  Florida Statutes, to read:
  431         222.22 Exemption of assets in qualified tuition programs,
  432  medical savings accounts, Coverdell education savings accounts,
  433  and hurricane savings accounts from legal process.—
  434         (5) Except as provided in s. 1009.986(7), as it relates to
  435  any validly existing qualified ABLE program authorized by s.
  436  529A of the Internal Revenue Code of 1986, as amended,
  437  including, but not limited to, the Florida ABLE program
  438  participation agreements under s. 1009.986, moneys paid into or
  439  out of such a program, and the income and assets of such a
  440  program, are not liable to attachment, levy, garnishment, or
  441  legal process in this state in favor of any creditor of or
  442  claimant against any designated beneficiary or other program
  443  participant.
  444         Section 4. Subsections (1) and (4) of section 1009.971,
  445  Florida Statutes, are amended to read:
  446         1009.971 Florida Prepaid College Board.—
  448  Prepaid College Board is hereby created as a body corporate with
  449  all the powers of a body corporate for the purposes delineated
  450  in this section. The board shall administer the prepaid program
  451  and the savings program, and shall perform essential
  452  governmental functions as provided in ss. 1009.97-1009.988 ss.
  453  1009.97-1009.984. For the purposes of s. 6, Art. IV of the State
  454  Constitution, the board shall be assigned to and
  455  administratively housed within the State Board of
  456  Administration, but it shall independently exercise the powers
  457  and duties specified in ss. 1009.97-1009.988 ss. 1009.97
  458  1009.984.
  460  board shall have the powers and duties necessary or proper to
  461  carry out the provisions of ss. 1009.97-1009.988 ss. 1009.97
  462  1009.984, including, but not limited to, the power and duty to:
  463         (a) Appoint an executive director to serve as the chief
  464  administrative and operational officer of the board and to
  465  perform other duties assigned to him or her by the board.
  466         (b) Adopt an official seal and rules.
  467         (c) Sue and be sued.
  468         (d) Make and execute contracts and other necessary
  469  instruments.
  470         (e) Establish agreements or other transactions with
  471  federal, state, and local agencies, including state universities
  472  and Florida College System institutions.
  473         (f) Administer the trust fund in a manner that is
  474  sufficiently actuarially sound to defray the obligations of the
  475  prepaid program and the savings program, considering the
  476  separate purposes and objectives of each program. The board
  477  shall annually evaluate or cause to be evaluated the actuarial
  478  soundness of the prepaid fund. If the board perceives a need for
  479  additional assets in order to preserve actuarial soundness of
  480  the prepaid program, the board may adjust the terms of
  481  subsequent advance payment contracts to ensure such soundness.
  482         (g) Invest funds not required for immediate disbursement.
  483         (h) Appear in its own behalf before boards, commissions, or
  484  other governmental agencies.
  485         (i) Hold, buy, and sell any instruments, obligations,
  486  securities, and property determined appropriate by the board.
  487         (j) Require a reasonable length of state residence for
  488  qualified beneficiaries.
  489         (k) Segregate contributions and payments to the trust fund
  490  into the appropriate fund.
  491         (l) Procure and contract for goods and services, employ
  492  personnel, and engage the services of private consultants,
  493  actuaries, managers, legal counsel, and auditors in a manner
  494  determined to be necessary and appropriate by the board.
  495         (m) Solicit and accept gifts, grants, loans, and other aids
  496  from any source or participate in any other way in any
  497  government program to carry out the purposes of ss. 1009.97
  498  1009.988 ss. 1009.97-1009.984.
  499         (n) Require and collect administrative fees and charges in
  500  connection with any transaction and impose reasonable penalties,
  501  including default, for delinquent payments or for entering into
  502  an advance payment contract or a participation agreement on a
  503  fraudulent basis.
  504         (o) Procure insurance against any loss in connection with
  505  the property, assets, and activities of the trust fund or the
  506  board.
  507         (p) Impose reasonable time limits on use of the benefits
  508  provided by the prepaid program or savings program. However, any
  509  such limitations shall be specified within the advance payment
  510  contract or the participation agreement, respectively.
  511         (q) Delineate the terms and conditions under which payments
  512  may be withdrawn from the trust fund and impose reasonable fees
  513  and charges for such withdrawal. Such terms and conditions shall
  514  be specified within the advance payment contract or the
  515  participation agreement.
  516         (r) Provide for the receipt of contributions in lump sums
  517  or installment payments.
  518         (s) Require that purchasers of advance payment contracts or
  519  benefactors of participation agreements verify, under oath, any
  520  requests for contract conversions, substitutions, transfers,
  521  cancellations, refund requests, or contract changes of any
  522  nature. Verification shall be accomplished as authorized and
  523  provided for in s. 92.525(1)(a).
  524         (t) Delegate responsibility for administration of one or
  525  both of the comprehensive investment plans required in s.
  526  1009.973 to persons the board determines to be qualified. Such
  527  persons shall be compensated by the board.
  528         (u) Endorse insurance coverage written exclusively for the
  529  purpose of protecting advance payment contracts, and
  530  participation agreements, and the purchasers, benefactors, and
  531  beneficiaries thereof, including group life policies and group
  532  disability policies, which are exempt from the provisions of
  533  part V of chapter 627.
  534         (v) Form strategic alliances with public and private
  535  entities to provide benefits to the prepaid program, savings
  536  program, and participants of either or both programs.
  537         (w) Solicit proposals and contract, pursuant to s. 287.057,
  538  for the marketing of the prepaid program or the savings program,
  539  or both together. Any materials produced for the purpose of
  540  marketing the prepaid program or the savings program shall be
  541  submitted to the board for review. No such materials shall be
  542  made available to the public before the materials are approved
  543  by the board. Any educational institution may distribute
  544  marketing materials produced for the prepaid program or the
  545  savings program; however, all such materials shall be approved
  546  by the board prior to distribution. Neither the state nor the
  547  board shall be liable for misrepresentation of the prepaid
  548  program or the savings program by a marketing agent.
  549         (x) Establish other policies, procedures, and criteria to
  550  implement and administer the provisions of ss. 1009.97-1009.988
  551  ss. 1009.97-1009.984.
  552         (y) Adopt procedures to govern contract dispute proceedings
  553  between the board and its vendors.
  554         Section 5. This act shall take effect October 1, 2015.