MI HB5782

Adds definition of "Internal Revenue Code" to mean the U.S. Internal Revenue Code of 1986 as in effect on January 1, 2024, or at taxpayer's option, as in effect for the current year.

Expands contract termination options to allow qualified beneficiaries to direct refunds to Michigan independent degree-granting institutions, community or junior colleges, or eligible educational institutions as defined under Internal Revenue Code Section 529.

Modifies refund payment procedures to allow the trust to make full refund payments by August 15, or if actuarial soundness is threatened, to distribute refunds in equal installments over 4 years instead of immediately.

Changes contract language from "shall" to "must" and clarifies terminology throughout (e.g., "pursuant to" to "under") for consistency and clarity.

Allows non-refundable advance tuition payment contracts for purchasers who are individuals, government agencies, or tax-exempt 501(c)(3) organizations purchasing contracts as part of a scholarship program, with pricing adjusted to reflect the non-refundable terms.