Loading chat...
ID H0177
Bill
Status
3/21/2013
Primary Sponsor
State Affairs Committee
Click for details
AI Summary
-
Revises the College Savings Program to operate through individual accounts that any person may open to save for qualified higher education expenses of a designated beneficiary.
-
Expands the State College Savings Program Board's powers to develop and implement the program, retain professional services, seek federal tax guidance, and charge administrative fees and service charges.
-
Allows the board to implement the program through staff, agreements with one or more financial institutions as depositories and managers, or agreements with other 529 plans or entities, with contract terms not to exceed 10 years.
-
Establishes procedures for account management including contribution limits based on anticipated education expenses, beneficiary changes restricted to family members, account transfers between family members, and annual account statements to owners.
-
Provides continuous appropriation of College Savings Fund moneys to the board, with a board member authorized to receive up to 0.5% of annual fund revenues for program implementation and administration costs.
Legislative Description
Amends existing law relating to the College Savings Program to revise a definition; to revise the powers and duties of the College Savings Program Board and to provide for certain powers and duties; to remove certain provisions relating to the use of a contractor as account depository and manager and to provide for the administration of the program; to provide that the program shall be operated through the use of individual accounts, to provide that each account may be opened by any person who desires to save for the qualified higher education expenses of a person, to remove provisions relating to the procedure to be followed in the event the board terminates certain authority of a financial institution relating to the program, to provide for the transfer of accounts, to clarify the effect of such transfer and to provide that the program shall provide certain statements to each account owner; to revise terminology, to provide for continuous appropriation of certain moneys to the board and to revise provisions relating to the use of moneys in the College Savings Fund.
COLLEGE SAVINGS PROGRAM
Last Action
Reported Signed by Governor on March 21, 2013 Session Law Chapter 110 Effective: 07/01/13
3/21/2013