The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Appropriations
BILL: CS/SB 1672
INTRODUCER: Education Committee and Senator Diaz
SUBJECT: State University Free Seat Program
DATE: April 16, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Westmark Bouck ED Fav/CS
2. Underhill Elwell AED Recommend: Favorable
3. Underhill Sadberry AP Favorable
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 1672 creates the State University Free Seat Program to require each state university to
waive the tuition and fees for one online course for a Florida resident who is either a veteran, an
active duty member of the United States Armed Forces, an active drilling members of the Florida
National Guard, or who has not been enrolled in a postsecondary institution for more than five
years, and is enrolled in an online baccalaureate degree program. The bill specifies that:
 A state university may not charge a student who meets such criteria more than 75 percent of
the tuition rate or tuition differential for all other courses.
 A student who qualifies for the tuition discount is eligible to receive the discount for up to
110 percent of the number of required credit hours of the enrolled degree program.
The bill does not require a state appropriation. However, state universities will have reduced
revenues from tuition and fees for each eligible student who enrolls in their online degree
programs. See Section V.
The bill takes effect July 1, 2021.
BILL: CS/SB 1672 Page 2
II. Present Situation:
Tuition and Fees
Tuition is the basic fee a student is charged for instruction provided by a public postsecondary
educational institution in Florida.1 All students are charged fees except students who are exempt
or whose fees are waived. State university boards of trustees are authorized to establish fees,
which include activity and service, health, and athletic fees; a technology fee; a financial aid fee;
and a tuition differential fee. State universities may also charge a per-credit hour distance
learning course fee.2
Tuition and Fee Rate
The resident undergraduate tuition is set by law at $105.07 per credit hour.3 The 2020-2021 State
University System (SUS) resident undergraduate tuition and fees average is $199.72 per credit
hour. The tuition and fees at Florida International University is $218.71 per credit hour, whereas
the tuition and fees at Florida Polytechnic University is $164.65 per credit hour.4
Tuition Differential
Each university board of trustees may establish, upon approval by the Board of Governors, a
tuition differential to promote improvements in the quality of undergraduate education and is
required to provide financial aid to undergraduate students who exhibit financial need for
undergraduate courses.5
Seventy percent of the revenues from the tuition differential must be expended for purposes of
undergraduate education, such as increasing course offerings, improving graduation rates,
increasing the percentage of undergraduate students who are taught by faculty, decreasing
student-faculty ratios, providing salary increases for faculty who have a history of excellent
teaching in undergraduate courses, improving the efficiency of the delivery of undergraduate
education through academic advisement and counseling, and reducing the percentage of students
who graduate with excess hours. Except as otherwise provided, the remaining 30 percent of the
revenues from the tuition differential, or the equivalent amount of revenue from private sources,
must be expended to provide financial aid to undergraduate students who exhibit financial need,
to meet the cost of university attendance.6
The aggregate sum of undergraduate tuition and fees per credit hour, including the tuition
differential, may not exceed the national average of undergraduate tuition and fees at four-year
degree-granting public postsecondary educational institutions. Each tuition differential may be
assessed on one or more undergraduate courses or on all undergraduate courses at a state
university, may vary by course or courses, by campus or center location, and by institution.7
1
Section 1009.01(1), F.S.
2
Sections 1009.24(2), (4), (5), (7) through (13), (16), and (17), F.S.
3
Section 1009.24(4)(a), F.S.
4
State University System of Florida, Tuition and Required Fees, 2020-2021, available at https://www.flbog.edu/wp-
content/uploads/2020-2021-SUS-Tuition-and-Fees-Report-1.pdf, at 1.
5
Section 1009.24(16), F.S.
6
Section 1009.24(16)(a), F.S.
7
Section 1009.24(16)(b), F.S.
BILL: CS/SB 1672 Page 3
In 2020-2021, the SUS average resident undergraduate student tuition differential fee is $42.88
per credit hour. Polytechnic University is the only state university that does not charge a tuition
differential fee. 8
Residency for Tuition Purposes
A legal resident of Florida for tuition purposes means one who has maintained his or her
residence in this state for the preceding year, has purchased and occupies a home as primary
residence, or has established a domicile in this state.9 Unless costs are exempted or waived, all
students are charged fees.10 An out-of-state fee is charged as an additional fee for a student who
does not qualify for the in-state tuition rate.11
Benefits for Military
Veterans of the United States Armed Forces
The term “veteran” is defined in law to mean a person who served in the active military, naval,
or air service and who was discharged or released under honorable conditions only or who later
received an upgraded discharge under honorable conditions, notwithstanding any action by the
United States Department of Veterans Affairs on individuals discharged or released with other
than honorable discharges. To receive benefits as a wartime veteran, a veteran must have served
in a campaign or expedition for which a campaign badge has been authorized or during a period
of wartime service as specified in law.12
Veterans currently receive priority course registration13 and may be eligible to receive credit for
relevant military training and education.14
Florida National Guard
The Florida National Guard consists of enlisted personnel, commissioned officers, and warrant
officers who are citizens of the United States, or who have declared their intention to become
citizens of the United States, organized, armed, equipped, and federally recognized, in
accordance with the laws of the state and the laws and regulations of the Department of the
Army and the Department of the Air Force.15
Active duty members of the Army, Navy, Air Force, Navy, Marines, Coast Guard, any current
reservists, and active Florida National Guard are afforded some residency protections under
Florida law. The following military personnel are classified as residents for tuition purposes:
8
State University System of Florida, Tuition and Required Fees, 2020-2021, available at https://www.flbog.edu/wp-
content/uploads/2020-2021-SUS-Tuition-and-Fees-Report-1.pdf, at 4.
9
Section. 1009.21(1)(d), F.S. A person or, if that person is a dependent child, his or her parent or parents, must have
established legal residence in this state and must have maintained legal residence in this state for at least 12 consecutive
months immediately prior to his or her initial enrollment in an institution of higher education. Section 1009.21(2)(a)1., F.S.
10
Section 1009.24(2), F.S.
11
Section 1009.01(2), F.S. The in-state tuition rate is described in s. 1009.21(1)(g), F.S.
12
Section 1.01(14), F.S.
13
Sections 1004.075 and 1005.09, F.S.
14
Sections 489.1131, 489.5161, and 493.61035, F.S.
15
Section 250.07(1), F.S.
BILL: CS/SB 1672 Page 4
 Active duty members of the Armed Services of the United States residing or stationed in
Florida and active drilling members of the Florida National Guard.
 Military personnel not stationed in Florida whose home of record or state of legal residence
certificate is Florida.16
Congressman C.W. Bill Young Tuition Waiver Program
The Congressman C.W. Bill Young Veteran Tuition Waiver Program requires a state university,
Florida College System institution, or career center to waive out-of-state fees for an honorably
discharged veteran of the U.S. Armed Forces, the U.S. Reserve Forces or the National Guard
who physically resides in Florida while enrolled at the institution. The waiver covers the
applicable portion of the fees up to 110 percent of the required credit hours for the degree or
certificate program of enrollment.17
Online Courses at State University System Institutions
Nationally, Florida ranks second in the number and percentage of students enrolled in distance
learning courses. In the 2018-2019 academic year, 75 percent of undergraduate students at
Florida’s state universities took at least one distance learning course. At four institutions, the
University of Central Florida, University of Florida, University of South Florida, and University
of West Florida, at least 80 percent of undergraduate students took one or more distance learning
courses. Across the SUS, 11 percent (36,648) of undergraduate students took distance learning
courses exclusively, and a majority (63 percent) of undergraduate students (202,895) in the SUS
took a combination of distance learning, classroom, or hybrid courses. Systemwide, 30 percent
of total undergraduate credit hours were taken in distance learning courses. During the Fall 2019
term, SUS institutions offered 164 online bachelor’s degree programs.18
University of Florida Online
University of Florida Online (UF Online) was created by the 2013 Legislature as an institute for
online learning at a preeminent state research university to provide for high quality, fully online
baccalaureate degree programs at an affordable cost.19 By 2018-2019, strategic development and
expansion efforts allowed the program to offer 21 fully online majors and seven minors. More
than 2,000 students have graduated from UF Online.20 For the UF Online program, both the
tuition rate ($78.80) and tuition differential fee ($33.12) are set at 75 percent of the per credit
hour rates for traditional undergraduate programs at the University of Florida.21
16
Florida Department of Education, Military Service & Residence in the Florida College System,
http://www.fldoe.org/core/fileparse.php/7480/urlt/0082723-faqsresidencymilitary.pdf (last visited March 22, 2021), at 1.
17
Florida Department of Education, Veterans, http://www.fldoe.org/schools/higher-ed/fl-college-system/veterans.stml (last
visited March 22, 2021). See s. 1009.26 (12)(a), F.S.
18
State University System of Florida, 2019 Annual Report for Online Education (July 21, 2020), available at
https://www.flbog.edu/wp-content/uploads/2019-Annual-Report_FINAL.pdf, at 4, 9, 10, 13 and 24.
19
Section 1001.7065(4), F.S., permits the university to establish a tuition structure for its online institute, not to exceed 75
percent of the tuition rate established by the Legislature.
20
State University System of Florida, 2019 Annual Report for Online Education (July 21, 2020), available at
https://www.flbog.edu/wp-content/uploads/2019-Annual-Report_FINAL.pdf, at 24.
21
State University System of Florida, Tuition and Required Fees, 2020-2021, available at https://www.flbog.edu/wp-
content/uploads/2020-2021-SUS-Tuition-and-Fees-Report-1.pdf, at 1 and 4.
BILL: CS/SB 1672 Page 5
National Recognition
In 2020, U.S. News & World Report ranked UF Online as one of the top five best online
bachelor’s degree programs in the nation. The University of Central Florida ranked in the top 15,
while Florida Atlantic University, Florida International University, and University of West
Florida all ranked in the top 100.22
III. Effect of Proposed Changes:
The bill creates s. 1009.266, F.S., to establish the State University Free Seat Program to
encourage veterans, active duty members of the United States Armed Forces, active drilling
members of the Florida National Guard, and nontraditional students to enroll in an online
baccalaureate degree program at a state university.
The bill specifies that a state university:
 Shall waive the tuition and fees, including lab fees, for one online course during each
academic year, provided the student is a resident, enrolled in an online baccalaureate degree
program and meets one of the following eligibility requirements:
o Is a veteran defined by law;
o Is an active duty member of the United States Armed Forces;
o Is an active drilling member of the Florida National Guard; or
o Has not been enrolled in a postsecondary institution for more than five years.
 May not charge an eligible student more than 75 percent of the tuition rate and 75 percent of
the tuition differential for all other courses in the program if the student remains enrolled in
at least one online course during each academic year.
The bill also specifies that a student is eligible to receive the discount for up to 110 percent of the
number of required credit hours of the degree program for which the student is enrolled. Most
SUS baccalaureate degree programs are set at 120 credit hours, which would authorize the
tuition discount for up to 132 credit hours.
The bill requires each state university to report to the Board of Governors (BOG) the number and
value of all such fee waivers granted annually, and requires the BOG to adopt regulations to
administer the program.
The bill takes effect July 1, 2021.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
22
Id. (showing UF Online ranked at number 4 in 2020 and number 5 in 2019). See also U.S. News and World Report, Best
Online Bachelor’s Programs, accessible at https://www.usnews.com/education/online-education/bachelors/rankings.
BILL: CS/SB 1672 Page 6
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
Providing one free online course to students enrolled in an online baccalaureate degree
program at a state university and a 25 percent discount on tuition for all other courses in
the program may increase access to online classes and enrollment at state universities.
C. Government Sector Impact:
The bill does not require a state appropriation. However, state universities will have
reduced revenues from tuition and fees for each eligible student who enrolls in their
online degree programs. The number of eligible students who will participate in the State
University Free Seat Program is unknown. For each eligible student, a state university
will not receive tuition and fees for one online course in an academic year. For example,
for each course waived, for UF Online this represents a loss of $129.1823 per credit hour,
and at Florida State University, a loss of 180.4924 per credit hour.
In addition, for all other courses in the online degree program, each state university will
not collect 25 percent of the resident undergraduate tuition rate of $105.07 and 25 percent
of the resident undergraduate tuition differential, which averages $42.88, for a total loss
of approximately $36.99 per credit hour.
VI. Technical Deficiencies:
None.
23
State University System of Florida, Tuition and Required Fees, 2020-2021, available at https://www.flbog.edu/wp-
content/uploads/2020-2021-SUS-Tuition-and-Fees-Report-1.pdf, at 4.
24
Florida State University, 2020-2021 Tuition, Distance Learning, available at
htt