SB332-SSA1,3,33
14.63
(3) (title)
Tuition prepayment College tuition and expenses contracts.
SB332-SSA1,3,77
14.63
(3) (c) The state treasurer may charge a purchaser an enrollment fee.
SB332-SSA1,3,1910
14.63
(4) Number of tuition units purchased. A person who enters into a
11contract under sub. (3) may purchase tuition units at any time and in any number,
12except that the total number of tuition units purchased on behalf of a single
13beneficiary may not exceed the number necessary to
pay for 4 years of full-time
14attendance, including mandatory student fees, as a resident undergraduate at the
15institution within the University of Wisconsin System that has the highest resident
16undergraduate tuition, as determined by the state treasurer, in the anticipated
17academic years of their use cover tuition, fees and the costs of room and board, books,
18supplies and equipment required for enrollment or attendance of the beneficiary at
19an institution of higher education.
SB332-SSA1,4,522
14.63
(5) (a) Except as provided in sub. (7m), if an individual named as
23beneficiary in a contract under sub. (3) attends an institution of higher education in
24the United States, each tuition unit purchased on his or her behalf entitles that
25beneficiary to apply toward the payment of tuition
and mandatory student, fees
and
1the costs of room and board, books, supplies and equipment required for enrollment
2or attendance at the institution an amount equal to 1% of the anticipated weighted
3average tuition of bachelor's degree-granting institutions within the University of
4Wisconsin System for the year of attendance, as estimated under sub. (2) in the year
5in which the tuition unit was purchased.
SB332-SSA1,4,108
14.63
(5) (b) (intro.) Upon request by the beneficiary, the state treasurer shall
9pay to the institution
or beneficiary, whichever is appropriate, in each semester of
10attendance the lesser of the following:
SB332-SSA1,4,1211
2. An amount equal to the sum of the institution's tuition
and mandatory
12student, fees
and the costs described in par. (a) for that semester.
SB332-SSA1,4,1815
14.63
(8) Exemption from garnishment, attachment and execution. Moneys
16deposited in the tuition trust fund and a beneficiary's right to the payment of tuition
17and mandatory student, fees
and the costs described in sub. (5) (a) under this section
18are not subject to garnishment, attachment, execution or any other process of law.
SB332-SSA1,4,2421
14.63
(11) (b) The requirements to pay tuition
and mandatory student, fees
and
22the costs of room and board, books, supplies and equipment under sub. (5) and to
23make refunds under sub. (7) are subject to the availability of sufficient assets in the
24tuition trust fund.
SB332-SSA1,5,7
114.63
(11m) Financial aid calculations. The value of tuition units shall not
2be included in the calculation of a beneficiary's eligibility for state financial aid for
3higher education if the beneficiary notifies the higher educational aids board and the
4institution of higher education that the beneficiary is planning to attend that he or
5she is a beneficiary of a contract under this section and the contract owner agrees to
6release to the higher educational aids board and the institution of higher education
7information necessary for the calculation under this subsection.
SB332-SSA1,5,1310
14.63
(13) Program termination. If the state treasurer determines that the
11program under this section is financially infeasible, the state treasurer shall
12discontinue entering into
tuition prepayment contracts under sub. (3) and
13discontinue selling tuition units under sub. (4).
SB332-SSA1,5,15
1514.64 College savings program. (1) D
efinitions. In this section:
SB332-SSA1,5,1716
(a) "Account owner" means an individual who establishes a college savings
17account under this section.
SB332-SSA1,5,1818
(b) "Board" means the college savings program board.
SB332-SSA1,5,19
19(2) Duties of the board. The board shall do all of the following:
SB332-SSA1,5,2520
(a) Except as provided in s. 16.25, establish and administer a college savings
21program that allows an individual, trust, legal guardian or entity described under
2226 USC 529 (e) (1) (C) to establish a college savings account to cover tuition, fees and
23the costs of room and board, books, supplies and equipment required for the
24enrollment or attendance of a beneficiary at an eligible educational institution, as
25defined under
26 USC 529.
SB332-SSA1,6,2
1(b) Ensure that the college savings program meets the requirements of a
2qualified state tuition plan under
26 USC 529.
SB332-SSA1,6,43
(c) Invest the contributions to college savings accounts and pay distributions
4to beneficiaries and eligible educational institutions.
SB332-SSA1,6,95
(d) Provide to each account owner, and to persons who are interested in
6establishing a college savings account, information about current and estimated
7future higher education costs, levels of participation in the college savings program
8that will help achieve educational funding objectives and availability of and access
9to financial aid.
SB332-SSA1,6,1410
(e) Promulgate rules to implement and administer this section, including rules
11that determine whether a withdrawal from a college savings account is a qualified
12or nonqualified withdrawal, as defined under
26 USC 529, and that impose more
13than a de minimis penalty, as defined under
26 USC 529, for nonqualified
14withdrawals.
SB332-SSA1,6,1715
(f) Seek rulings and guidance from the U.S. department of the treasury, the
16internal revenue service and the securities and exchange commission to ensure the
17proper implementation and administration of the college savings program.
SB332-SSA1,6,2018
(g) Ensure that if the department of administration changes vendors, the
19balances of college savings accounts are promptly transferred into investment
20instruments as similar to the original investment instruments as possible.
SB332-SSA1,6,2421
(h) Keep personal and financial information pertaining to an account owner or
22a beneficiary closed to the public, except that the board may release to the
23appropriate state agency information necessary in determining a beneficiary's
24eligibility for state financial aid for higher education.
SB332-SSA1,7,2
1(3) Account owners; beneficiaries; contributions; termination of savings
2accounts. (a) An account owner may do all of the following:
SB332-SSA1,7,33
1. Contribute to a college savings account
SB332-SSA1,7,44
2. Select a beneficiary of a college savings account.
SB332-SSA1,7,65
3. Change the beneficiary of a college savings account to a family member, as
6defined under
26 USC 529, of the previous beneficiary.
SB332-SSA1,7,87
4. Transfer all or a portion of a college savings account to another college
8savings account whose beneficiary is a member of the family.
SB332-SSA1,7,109
5. Designate an individual other than the beneficiary as an individual to whom
10funds may be paid from a college savings account.
SB332-SSA1,7,1211
6. Receive distributions from a college savings account if no other individual
12is designated.
SB332-SSA1,7,1513
(b) An individual may be the beneficiary of more than one college savings
14account, and an account owner may be the beneficiary of a college savings account
15that the account owner has established.
SB332-SSA1,7,2116
(c) The board shall establish a minimum initial contribution to a college savings
17account that may be waived if the account owner agrees to contribute to a college
18savings account through a payroll deduction or automatic deposit plan. The board
19shall ensure that any such plan permits the adjustment of scheduled deposits
20because of a change in the account owner's economic circumstances or a beneficiary's
21educational plans.
SB332-SSA1,7,2322
(d) An account owner under this section may terminate his or her college
23savings account if any of the following occurs:
SB332-SSA1,7,2424
1. The beneficiary dies or is permanently disabled.
SB332-SSA1,8,2
12. The beneficiary graduates from high school but is unable to gain admission
2to an institution of higher education after a good faith effort.
SB332-SSA1,8,43
3. The beneficiary attended an institution of higher education but involuntarily
4failed to complete the program in which he or she was enrolled.
SB332-SSA1,8,55
4. The beneficiary is at least 18 years old and one of the following applies:
SB332-SSA1,8,66
a. The beneficiary has not graduated from high school.
SB332-SSA1,8,77
b. The beneficiary has decided not to attend an institution of higher education.
SB332-SSA1,8,98
c. The beneficiary attended an institution of higher education but voluntarily
9withdrew without completing the program in which he or she was enrolled.
SB332-SSA1,8,1010
5. Other circumstances determined by the board to be grounds for termination.
SB332-SSA1,8,1411
(e) The board shall terminate a college savings account if any portion of the
12college savings account balance remains unused 10 years after the anticipated
13academic year of the beneficiary's initial enrollment in an eligible educational
14institution.
SB332-SSA1,8,17
15(4) Contracts with professionals. The board may enter into a contract for the
16services of accountants, attorneys, consultants and other professionals to assist in
17the administration and evaluation of the college savings program.
SB332-SSA1,8,21
18(5) Report. Annually, the board shall submit a report to the governor, and to
19the appropriate standing committees of the legislature under s. 13.172 (3), on the
20performance of the college savings program, including any recommended changes to
21the program.
SB332-SSA1,8,25
22(6) Construction. Nothing in this section guarantees an individual's
23admission to, retention by or graduation from any institution of higher education; a
24rate of interest or return on a college savings account; or the payment of principal,
25interest or return on a college savings account.
SB332-SSA1,9,3
1(7) Exemption from garnishment, attachment and execution; security for
2loan. (a) A beneficiary's right to qualified withdrawals under this section is not
3subject to garnishment, attachment, execution or other process of law.
SB332-SSA1,9,54
(b) No interest in a college savings account may be pledged as security for a
5loan.
SB332-SSA1,9,12
6(8) Financial aid calculations. The balance of a college savings account shall
7not be included in the calculation of a beneficiary's eligibility for state financial aid
8for higher education if the beneficiary notifies the higher educational aids board and
9the eligible educational institution that the beneficiary is planning to attend that he
10or she is a beneficiary of a college savings account and if the account owner agrees
11to release to the higher educational aids board and the eligible educational
12institution information necessary for the calculation under this subsection.
SB332-SSA1,9,1414
15.07
(1) (b) 2. College savings program board.
SB332-SSA1,9,18
1616.25 College savings program vendor.
(1) The department shall
17determine the factors to be considered in selecting a vendor of the program under s.
1814.64, which shall include:
SB332-SSA1,9,1919
(a) The person's ability to satisfy record-keeping and reporting requirements.
SB332-SSA1,9,2020
(b) The fees, if any, that the person proposes to charge account owners.
SB332-SSA1,9,2221
(c) The person's plan for promoting the college savings program and the
22investment that the person is willing to make to promote the program.
SB332-SSA1,9,2423
(d) The minimum initial contribution or minimum contributions that the
24person will require.
SB332-SSA1,9,2525
(e) The ability and willingness of the person to accept electronic contributions.
SB332-SSA1,10,2
1(f) The ability of the person to augment the college savings program with
2additional, beneficial services related to the program.
SB332-SSA1,10,6
3(2) The department shall solicit competitive sealed proposals under s. 16.75
4(2m) from nongovernmental persons to serve as vendor of the college savings
5program. The department shall select the vendor based upon factors determined by
6the department under sub. (1).
SB332-SSA1,10,8
7(3) The contract between the department and the vendor shall ensure all of the
8following:
SB332-SSA1,10,109
(a) That the vendor reimburses the state for all administrative costs that the
10state incurs for the college savings program.
SB332-SSA1,10,1311
(b) That a firm of certified public accountants selected by the vendor annually
12audits the college savings program and provides a copy of the audit to the college
13savings program board.
SB332-SSA1,10,1714
(c) That each account owner receives a quarterly statement that identifies the
15contributions to the college savings account during the preceding quarter, the total
16contributions to and the value of the college savings account through the end of the
17preceding quarter and any distributions made during the preceding quarter.
SB332-SSA1,10,1918
(d) That the manager communicate to the beneficiary and account owner the
19requirements of s. 14.64 (8).
SB332-SSA1,10,2521
16.75
(2m) (a)
If Except as otherwise required by law, if the secretary or his or
22her designee determines that the use of competitive sealed bidding is not practicable
23or not advantageous to this state, the department may solicit competitive sealed
24proposals. Each request for competitive sealed proposals shall state the relative
25importance of price and other evaluation factors.
SB332-SSA1,11,42
20.585
(1) (gm)
General program operations; reimbursement. All moneys
3received from the vendor of the college savings program under s. 16.25 (3) (a) for
4general programs operations.
SB332-SSA1,11,86
20.585
(2) (a)
Administrative expenses; general fund. The amounts in the
7schedule for the administrative expenses of the college tuition
prepayment and
8expenses program under s. 14.63, including the expense of promoting the program.
SB332-SSA1,11,1310
20.585
(2) (s)
Administrative expenses; tuition trust fund. From the tuition
11trust fund, the amounts in the schedule for the administrative expenses of the college
12tuition
prepayment and expenses program under s. 14.63, including the expense of
13promoting the program.
SB332-SSA1,11,1916
71.05
(6) (b) 23. Any increase in value of a tuition unit that is purchased under
17a tuition contract under s. 14.63
, except that the subtraction under this subdivision
18may not be claimed by any individual who received a refund under s. 14.63 (7) (a) 2.,
193. or 4.
SB332-SSA1, s. 13h
20Section 13h. 71.05 (6) (b) 28. h. of the statutes is created to read:
SB332-SSA1,11,2521
71.05
(6) (b) 28. h. No modification may be claimed under this subdivision for
22an amount paid for tuition expenses, as described under this subdivision, if the
23source of the payment is an amount withdrawn from a college savings account, as
24described in s. 14.64 or from a college tuition prepayment program, as described in
25s. 14.63.
SB332-SSA1,12,52
71.05
(6) (b) 31. Any increase in value of a college savings account, as described
3in s. 14.64, except that the subtraction under this subdivision may not be claimed by
4any individual who has made an unqualified withdrawal, as described in s. 14.64 (2)
5(e).