SB332,5,33 (b) "Board" means the college savings program board.
SB332,5,4 4(2) Duties of the board. The board shall do all of the following:
SB332,5,105 (a) Except as provided in s. 16.25, establish and administer a college savings
6program that allows an individual, trust, legal guardian or entity described under
726 USC 529 (e) (1) (C) to establish a college savings account to cover tuition, fees and
8the costs of room and board, books, supplies and equipment required for the
9enrollment or attendance of a beneficiary at an eligible educational institution, as
10defined under 26 USC 529.
SB332,5,1211 (b) Ensure that the college savings program meets the requirements of a
12qualified state tuition plan under 26 USC 529.
SB332,5,1413 (c) Invest the contributions to college savings accounts and pay distributions
14to beneficiaries and eligible educational institutions.
SB332,5,1915 (d) Provide to each account owner, and to persons who are interested in
16establishing a college savings account, information about current and estimated
17future higher education costs, levels of participation in the college savings program
18that will help achieve educational funding objectives and availability of and access
19to financial aid.
SB332,5,2420 (e) Promulgate rules to implement and administer this section, including rules
21that determine whether a withdrawal from a college savings account is a qualified
22or nonqualified withdrawal, as defined under 26 USC 529, and that impose more
23than a de minimis penalty, as defined under 26 USC 529, for nonqualified
24withdrawals.
SB332,6,3
1(f) Seek rulings and guidance from the U.S. department of the treasury, the
2internal revenue service and the securities and exchange commission to ensure the
3proper implementation and administration of the college savings program.
SB332,6,64 (g) Ensure that if the department of administration changes managers, the
5balances of college savings accounts are promptly transferred into investment
6instruments as similar to the original investment instruments as possible.
SB332,6,87 (h) Keep personal and financial information pertaining to an account owner or
8a beneficiary closed to the public.
SB332,6,10 9(3) Account owners; beneficiaries; contributions; termination of savings
10accounts.
(a) An account owner may do all of the following:
SB332,6,1111 1. Contribute to a college savings account
SB332,6,1212 2. Select a beneficiary of a college savings account.
SB332,6,1413 3. Change the beneficiary of a college savings account to a family member, as
14defined under 26 USC 529, of the previous beneficiary.
SB332,6,1615 4. Transfer all or a portion of a college savings account to another college
16savings account whose beneficiary is a member of the family.
SB332,6,1817 5. Designate an individual other than the beneficiary as an individual to whom
18funds may be paid from a college savings account.
SB332,6,2019 6. Receive distributions from a college savings account if no other individual
20is designated.
SB332,6,2321 (b) An individual may be the beneficiary of more than one college savings
22account, and an account owner may be the beneficiary of a college savings account
23that the account owner has established.
SB332,7,424 (c) The board shall establish a minimum initial contribution to a college savings
25account that may be waived if the account owner agrees to contribute to a college

1savings account through a payroll deduction or automatic deposit plan. The board
2shall ensure that any such plan permits the adjustment of scheduled deposits
3because of a change in the account owner's economic circumstances or a beneficiary's
4educational plans.
SB332,7,65 (d) An account owner under this section may terminate his or her college
6savings account if any of the following occurs:
SB332,7,77 1. The beneficiary dies or is permanently disabled.
SB332,7,98 2. The beneficiary graduates from high school but is unable to gain admission
9to an institution of higher education after a good faith effort.
SB332,7,1110 3. The beneficiary attended an institution of higher education but involuntarily
11failed to complete the program in which he or she was enrolled.
SB332,7,1212 4. The beneficiary is at least 18 years old and one of the following applies:
SB332,7,1313 a. The beneficiary has not graduated from high school.
SB332,7,1414 b. The beneficiary has decided not to attend an institution of higher education.
SB332,7,1615 c. The beneficiary attended an institution of higher education but voluntarily
16withdrew without completing the program in which he or she was enrolled.
SB332,7,1717 5. Other circumstances determined by the board to be grounds for termination.
SB332,7,2118 (e) The board shall terminate a college savings account if any portion of the
19college savings account balance remains unused 10 years after the anticipated
20academic year of the beneficiary's initial enrollment in an eligible educational
21institution.
SB332,7,24 22(4) Contracts with professionals. The board may enter into a contract for the
23services of accountants, attorneys, consultants and other professionals to assist in
24the administration and evaluation of the college savings program.
SB332,8,4
1(5) Report. Annually, the board shall submit a report to the governor, and to
2the appropriate standing committees of the legislature under s. 13.172 (3), on the
3performance of the college savings program, including any recommended changes to
4the program.
SB332,8,8 5(6) Construction. Nothing in this section guarantees an individual's
6admission to, retention by or graduation from any institution of higher education; a
7rate of interest or return on a college savings account; or the payment of principal,
8interest or return on a college savings account.
SB332,8,11 9(7) Exemption from garnishment, attachment and execution; security for
10loan.
(a) A beneficiary's right to qualified withdrawals under this section is not
11subject to garnishment, attachment, execution or other process of law.
SB332,8,1312 (b) No interest in a college savings account may be pledged as security for a
13loan.
SB332,8,17 14(8) Financial aid calculations. No state agency, University of Wisconsin
15System institution or college campus or technical college may include the balance of
16a college savings account in the calculation of a beneficiary's eligibility for state
17financial aid for higher education.
SB332, s. 10 18Section 10. 15.07 (1) (b) 2. of the statutes is created to read:
SB332,8,1919 15.07 (1) (b) 2. College savings program board.
SB332, s. 11 20Section 11. 16.25 of the statutes is created to read:
SB332,8,23 2116.25 College savings program manager. (1) The department shall
22determine the factors to be considered in selecting a person to serve as manager of
23the program under s. 14.64, which shall include:
SB332,8,2424 (a) The person's ability to satisfy record-keeping and reporting requirements.
SB332,8,2525 (b) The fees, if any, that the person proposes to charge account owners.
SB332,9,2
1(c) The person's plan for promoting the college savings program and the
2investment that the person is willing to make to promote the program.
SB332,9,43 (d) The minimum initial contribution or minimum contributions that the
4person will require.
SB332,9,55 (e) The ability and willingness of the person to accept electronic contributions.
SB332,9,76 (f) The ability of the person to augment the college savings program with
7additional, beneficial services related to the program.
SB332,9,11 8(2) The department shall solicit competitive sealed proposals under s. 16.75
9(2m) from nongovernmental persons to serve as manager of the college savings
10program. The department shall select the manager based upon factors determined
11by the department under sub. (1).
SB332,9,13 12(3) The contract between the department and the manager shall ensure all of
13the following:
SB332,9,1514 (a) That the manager reimburses the state for all administrative costs that the
15state incurs for the college savings program.
SB332,9,1816 (b) That a firm of certified public accountants selected by the manager annually
17audits the college savings program and provides a copy of the audit to the college
18savings program board.
SB332,9,2219 (c) That each account owner receives a quarterly statement that identifies the
20contributions to the college savings account during the preceding quarter, the total
21contributions to and the value of the college savings account through the end of the
22preceding quarter and any distributions made during the preceding quarter.
SB332, s. 12 23Section 12. 16.75 (2m) (a) of the statutes is amended to read:
SB332,9,2524 16.75 (2m) (a) If Except as otherwise required by law, if the secretary or his or
25her designee determines that the use of competitive sealed bidding is not practicable

1or not advantageous to this state, the department may solicit competitive sealed
2proposals. Each request for competitive sealed proposals shall state the relative
3importance of price and other evaluation factors.
SB332, s. 13 4Section 13. 20.585 (1) (gm) of the statutes is created to read:
SB332,10,95 20.585 (1) (gm) General program operations; reimbursement. All moneys
6received from the manager of the college savings program under s. 16.25 (3) (a) for
7general programs operations. No moneys may be encumbered under this paragraph
8on or after the first day of the 25th month beginning after the effective date of this
9paragraph .... [revisor inserts date].
SB332, s. 14 10Section 14. 815.18 (3) (p) of the statutes is created to read:
SB332,10,1211 815.18 (3) (p) College savings accounts. An interest in a college savings account
12under s. 14.64.
SB332, s. 15 13Section 15 . Nonstatutory provisions.
SB332,10,2214 (1) (a ) Notwithstanding section 15.07 (1) (b) 2. of the statutes, as created by this
15act, the governor may provisionally appoint initial members of the college savings
16program board under section 14.57 of the statutes, as created by this act. Those
17provisional appointments are in force until the governor withdraws them or the
18senate acts upon them, and if the senate confirms them, they continue for the
19remainder of the unexpired terms, if any, of the members and until successors are
20chosen and qualify. A provisional appointee may exercise all the powers and duties
21of board membership to which the person is appointed during the time in which the
22appointee qualifies.
SB332,11,423 (b) A provisional appointment under paragraph (a) that the governor
24withdraws lapses upon withdrawal and creates a vacancy for the provisional
25appointment of another initial member of the college savings program board. A

1provisional appointment that the governor makes under paragraph (a) and that the
2senate rejects lapses upon rejection and creates a vacancy for nomination and
3appointment under section 15.07 (1) (b) 2. of the statutes, as created by this act, of
4another initial board member.
SB332,11,105 (2) Notwithstanding the length of the terms specified in section 14.57 (3) and
6(6) of the statutes, as created by this act, the initial terms of the member appointed
7under section 14.57 (3) of the statutes, as created by this act, and of 2 of the members
8appointed under section 14.57 (6) of the statutes, as created by this act, expire on May
91, 2003, and the initial terms of 4 of the members appointed under section 14.57 (6)
10of the statutes, as created by this act, expire on May 1, 2005.
SB332, s. 16 11Section 16. Effective dates. This act takes effect on the first day of the 10th
12month following publication, except as follows:
SB332,11,1413 (1) The treatment of sections 14.57 and 15.07 (1) (b) 2. of the statutes and
14Section 15 of this act take effect the day after publication.
SB332,11,1515 (End)
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