MI SB0546

Parents may open one account per dependent student beginning one year after the bill's effective date to pay for eligible services from public schools or other organizations and postsecondary education expenses.

Account program agreements must include parent and student names, addresses, and social security numbers, plus any additional information required by the state treasurer or program manager.

Contributions to accounts may be made in cash, check, credit card, or similar approved methods by any individual or entity, but not property.

Account distributions for eligible services are paid directly to the school or organization providing services, while postsecondary education distributions may be paid to the account owner or institution.

Upon student graduation, remaining account funds may be transferred back to the enhanced Michigan education savings program fund or used for postsecondary education expenses; upon student death, deposited funds are returned to the program fund.

Account owners cannot direct investment of contributions or earnings except by selecting among investment strategies designed by the program manager, and account interests cannot be used as loan security.