Promulgate rules to implement and administer this section, including rules that determine whether a withdrawal from a college savings account is a qualified or nonqualified withdrawal, as defined under 26 USC 529
, and that impose more than a de minimis penalty, as defined under 26 USC 529
, for nonqualified withdrawals.
Seek rulings and guidance from the U.S. department of the treasury, the internal revenue service and the securities and exchange commission to ensure the proper implementation and administration of the college savings program.
Ensure that if the department changes vendors, the balances of college savings accounts are promptly transferred into investment instruments as similar to the original investment instruments as possible.
Keep personal and financial information pertaining to an account owner or a beneficiary closed to the public, except that the board may release to the appropriate state agency information necessary in determining a beneficiary's eligibility for state financial aid for higher education.
Before December 31 of each year, beginning in 2015, ensure that the account balance limitation under sub. (3) (bm)
is increased for the subsequent year. The annual increase shall be equal to a percentage that is not less than the most recently published national average tuition and fees percentage increase at private, nonprofit 4-year institutions, as determined by the College Board, or such other nationally reputable entity, and shall be subject to the requirements under 26 USC 529
that pertain to the prohibition on excess contributions.
(3) Account owners; beneficiaries; contributions; termination of savings accounts. 16.641(3)(a)(a)
An account owner may do all of the following:
Contribute to a college savings account or authorize any other person to contribute to the account.
Change the beneficiary of a college savings account to a family member, as defined under 26 USC 529
, of the previous beneficiary.
Transfer all or a portion of a college savings account to another college savings account whose beneficiary is a member of the family.
Designate a person other than the beneficiary as a person to whom funds may be paid from a college savings account.
Receive distributions from a college savings account if no other person is designated.
An individual may be the beneficiary of more than one college savings account, and an account owner may be the beneficiary of a college savings account that the account owner has established.
Beginning on August 1, 2015, no contribution may be made to an account if the contribution would cause the account balance of a beneficiary's account, or the combined balance of all accounts of a beneficiary, to exceed $425,000. This contribution limitation applies to all accounts that are established on and after that date, and to all accounts that are in existence on that date that have not yet reached the balance limit specified in this paragraph, subject to the annual increase described in sub. (2) (i)
The board shall establish a minimum initial contribution to a college savings account that may be waived if the account owner agrees to contribute to a college savings account through a payroll deduction or automatic deposit plan. The board shall ensure that any such plan permits the adjustment of scheduled deposits because of a change in the account owner's economic circumstances or a beneficiary's educational plans.
An account owner under this section may terminate his or her college savings account if any of the following occurs:
The beneficiary graduates from high school but is unable to gain admission to an institution of higher education after a good faith effort.
The beneficiary attended an institution of higher education but involuntarily failed to complete the program in which he or she was enrolled.
The beneficiary is at least 18 years old and one of the following applies:
The beneficiary has decided not to attend an institution of higher education.
The beneficiary attended an institution of higher education but voluntarily withdrew without completing the program in which he or she was enrolled.
Other circumstances determined by the board to be grounds for termination.
The board may terminate a college savings account if any portion of the college savings account balance remains unused 10 years after the anticipated academic year of the beneficiary's initial enrollment in an eligible educational institution.
(4) Contracts with professionals.
The board may enter into a contract for the services of accountants, attorneys, consultants and other professionals to assist in the administration and evaluation of the college savings program.
Annually, the board shall submit a report to the governor, and to the appropriate standing committees of the legislature under s. 13.172 (3)
, on the performance of the college savings program, including any recommended changes to the program.
Nothing in this section guarantees an individual's admission to, retention by or graduation from any institution of higher education; a rate of interest or return on a college savings account; or the payment of principal, interest or return on a college savings account.
(7) Exemption from garnishment, lien, levy, attachment and execution; security for loan. 16.641(7)(a)(a)
An account established under this section is not subject to garnishment, lien, levy, attachment, execution or other process of law.
No interest in a college savings account may be pledged as security for a loan.
(8) Financial aid calculations.
The balance of a college savings account shall not be included in the calculation of a beneficiary's eligibility for state financial aid for higher education if the beneficiary notifies the higher educational aids board and the eligible educational institution that the beneficiary is planning to attend that he or she is a beneficiary of a college savings account and if the account owner agrees to release to the higher educational aids board and the eligible educational institution information necessary for the calculation under this subsection.
History: 1999 a. 44
; 2001 a. 7
; 2011 a. 32
; Stats. 2011 s. 16.641; 2013 a. 227
; 2015 a. 55
See also ch. Adm 81
, Wis. adm. code.
Repayment to the general fund. 16.642(1)
The secretary shall transfer from the tuition trust fund, the college savings program trust fund, the college savings program bank deposit trust fund, or the college savings program credit union deposit trust fund to the general fund an amount equal to the amount expended from the appropriations under s. 20.505 (9) (a)
, 1995 stats., s. 20.585 (2) (a)
, 2001 stats., and s. 20.585 (2) (am)
, 2001 stats., when the secretary determines that funds in those trust funds are sufficient to make the transfer. The secretary may make the transfer in installments.
Annually, by June 1, the secretary shall submit a report to the joint committee on finance on the amount available for repayment under sub. (1)
, the amount repaid under sub. (1)
, and the outstanding balance under sub. (1)
History: 2001 a. 16
; 2003 a. 33
; 2005 a. 478
; 2011 a. 32
; Stats. 2011 s. 16.642.
Support accounts for persons with disabilities. 16.643(1)(1)
Termination of account.
Upon the death of an account owner whose account is part of a qualified ABLE program under section 529A
of the Internal Revenue Code, the account shall terminate, and upon such termination any amount remaining in the account shall be recoverable by the state under s. 49.849
as property of a decedent that is recoverable under that statute. Any amount that remains in the account following such recovery under s. 49.849
shall be paid to the account owner's estate. Recovery authorized under this subsection may relate only to public assistance received by a beneficiary on and after the date on which an account is established.
(2) Eligibility for long-term care programs.
A person who is determining eligibility for an individual for a long-term care program under s. 46.27
, or 46.277
, the family care benefit under s. 46.286
, the family care partnership program, the long-term care program defined in s. 46.2899 (1)
, or any other demonstration program or program operated under a waiver of federal medicaid law that provides long-term care benefits shall exclude from the determination any income from assets accumulated in an account that is part of a qualified ABLE program under section 529A
of the Internal Revenue Code.
History: 2015 a. 55
"Affiliate" means a person, as defined in s. 77.51 (10)
, that controls, is controlled by, or is under common control with another person, as defined in s. 77.51 (10)
"Agency" means an office, department, agency, institution of higher education, association, society or other body in state government created or authorized to be created by the constitution or any law, which is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority.
"Computer services" means any services in which a computer is utilized other than for personal computing purposes.
"Contractual services" includes all services, materials to be furnished by a service provider in connection with services, and any limited trades work involving less than $30,000 to be done for or furnished to the state or any agency.
"Control" means to own, directly or indirectly, more than 10% of the interest in or voting securities of a business.
"Cost-benefit analysis" means a comprehensive study to identify and compare the total cost, quality, technical expertise, and timeliness of a service performed by state employees and resources with the total cost, quality, technical expertise, and timeliness of the same service obtained by means of a contract for contractual services.
"Executive branch agency" means an agency in the executive branch but does not include the building commission.
"Judicial branch agency" means an agency created under ch. 757
or an agency created by order of the supreme court.
"Legislative service agency" means an agency created under ch. 13
which is authorized, or the head of which is authorized, to appoint subordinate staff, except the building commission.
"Limited trades work" means the repair or replacement of existing equipment or building components with equipment or components of the same kind, if the work is not dependent upon the design services of an architect or engineer, and does not alter or affect the performance of any building system, structure, exterior walls, roof or exits, or the fire protection or sanitation of the building. "Limited trades work" includes decorative and surface material changes within a building and minor preventive maintenance to ancillary facilities such as drives, sidewalks and fences.
"Municipality" means a county, city, village, town, school district, board of school directors, sewer district, drainage district, technical college district or any other public or quasi-public corporation, officer, board or other body having the authority to award public contracts.
"Officer" includes the person or persons at the head of each agency, by whatever title the person or persons may be elsewhere designated.
"Permanent personal property" means any and all property which in the opinion of the secretary will have a life of more than 2 years.
"Personal computing" means utilizing a computer that is located at the work station where the input or output of data is conducted.
"Recovered material" means a product which is recovered from solid waste in a form identical to the original form for a use that is the same as or similar to the original use.
"Recycled material" means a product which is manufactured from solid waste or paper mill sludge.
"Recycled or recovered content" means the proportion of an item, by weight or other measure, which is recycled material or recovered material.
"Voting securities" means securities that confer upon the holder the right to vote for the election of members of the board of directors or similar governing body of a business, or are convertible into, or entitle the holder to receive upon their exercise, securities that confer such a right to vote.
History: 1971 c. 164
; 1975 c. 41
; 1977 c. 29
; 1979 c. 34
; 1983 a. 27
; 1985 a. 29
, 3200 (1)
; 1987 a. 292
; 1989 a. 335
; 1991 a. 39
; 1993 a. 263
; 1995 a. 27
; 1997 a. 27
; 1999 a. 65
; 2001 a. 16
; 2003 a. 33
; 2005 a. 74
; 2007 a. 20
; 2009 a. 28
; 2011 a. 10
; 2013 a. 20
"Contractual services" include technical and professional services. 65 Atty. Gen. 251.
Subscription service and procurement system. 16.701(1)(1)
The department may provide a subscription service containing current information of interest to prospective vendors concerning state procurement opportunities. If the department provides the service, the department shall assist small businesses, as defined in s. 16.75 (4) (c)
, who are prospective vendors in accessing and using the service by providing facilities or services to the businesses. The department may charge a fee for any such service. The department shall prescribe the amount of any fee by rule.
The department may provide an electronic procurement system to manage all aspects of procurement under this subchapter. The electronic procurement system may supplement or supplant the subscription service under sub. (1)
, and the department may permit prospective vendors to provide product or service information, as provided in sub. (2)
, through the electronic procurement system. If the department provides an electronic procurement system under this subsection, the department may require that an agency use the system. The department may assess agencies and vendors for the costs of the system under this subsection in accordance with a method the department develops.
The department may permit prospective vendors to provide product or service information through the service established under sub. (1)
. The department may prescribe fees or establish fees through a competitive process for the use of the service under this subsection.
See also s. Adm 9.01
, Wis. adm. code.
The department may maintain a bidders list. The bidders list shall include the names and addresses of all persons who request to be notified of bids or competitive sealed proposals, excluding those to be awarded under s. 16.75 (1) (c)
or (2m) (c)
, that are solicited by the department or other agency for the procurement of materials, supplies, equipment, or contractual services under this subchapter. Any bidders list may include the names and addresses of any person who requests to be notified of bids or competitive sealed proposals that are solicited by any agency. The department or other agency shall notify each person on the bidders list of all bids or competitive sealed proposals that are solicited by the department or other agency. The department may remove any person from the bidders list for cause.
Contractual services. 16.705(1)
The department or its agents may contract for services which can be performed more economically or efficiently by such contract. The department shall, by rule, prescribe uniform procedures for determining whether services are appropriate for contracting under this subsection.
The determinations under sub. (1)
do not apply to a contract entered into by any of the following:
Notwithstanding s. 16.75 (2m)
, and except as provided in s. 16.75 (2) (b)
, the department and its agents may purchase contractual services only if those services are performed within the United States. This requirement does not apply to any of the following:
Contractual services that are not available to be performed within the United States.
Contractual services if the payment for any part of the contractual services is made from federal moneys.
The renewal, modification, or extension of any contract in effect on March 18, 2010.