MI SB0547

Designates sections 1-16 of the Michigan Education Savings Program Act (2000 PA 161) as Part 1 and amends multiple sections to update terminology and provisions.

Establishes the Michigan Education Savings Program in the Department of Treasury to allow individuals and eligible entities to open education savings accounts for qualified higher education expenses at eligible educational institutions.

Authorizes the State Treasurer to solicit proposals from program managers and enter into management contracts addressing account administration, investment management, fee structures (not exceeding 2.0% of average daily net assets), and compliance with federal section 529 qualified tuition program requirements.

Permits account owners to make contributions in cash, check, or credit card (minimum initial deposit of $25 or $15 per payroll period), withdraw funds with 60 days' notice, change designated beneficiaries to family members, and transfer accounts to other qualified tuition programs once every 12 months.

Requires program managers to disclose account terms, tax consequences, withdrawal restrictions, investment history, and projections to account owners and imposes a 10% penalty on non-qualified distributions made after December 31, 2001; takes effect only if SB 544 of the 99th Legislature is enacted.