Section 13. TCS 16.02 (9m) is created to read:
TCS 16.02 (9m) “GED" means a general educational development certificate issued by the state superintendent of public instruction under s.
115.29 (4).
Section 14. TCS 16.02 (11) is amended to read:
TCS 16.02 (11) (11) “Graduated from high school" means having received a
high school diploma
in satisfaction of school board requirements under s.
118.33
PI 5.02 (8), or a high school equivalency diploma under s.
115.29 (4), Stats.
Section 15. TCS 16.02 (19) is repealed.
Section 16. TCS 16.03 is amended to read:
TCS 16.03 Period of initial eligibility. The eligibility period for an initial TOP grant begins on the date a person graduates from high school or receives a GED and ends on his or her initial eligibility end date.
Section 17. TCS 16.04 (1) is amended to read:
TCS 16.04 (1) The student has graduated from high school or received a GED as verified by the district.
Section 18. TCS 16.05 (3) is amended to read:
TCS 16.05 (3) A grant recipient is eligible to receive up to 2 TOP grants totaling no more than $500 per school year within a 12-month period from the date of receipt of the first TOP grant. In no case shall a grant recipient be awarded more than 4 TOP grants in total.
Section 19. TCS 16.05 (4) is repealed.
Section 20. TCS 16.06 (intro) is amended to read:
TCS 16.06 Continuation of TOP grant eligibility. To receive a TOP grant for a 2nd, 3
rd, or 4th semester after receiving an initial grant award, a student shall meet all of the following eligibility requirements on the date of record:
Section 21. TCS 16.07 is repealed and recreated to read:
TCS 16.07 Refunding policy. (1) A student who either fails to attain a 2.0 GPA or who is not enrolled full-time during the semester in which he or she was awarded a TOP grant shall forfeit any remaining eligibility for subsequent TOP grant awards.
(2) A student who has received a TOP grant under s.
TCS 16.05 or
16.06 may request an exemption for reasons owing to personal hardship during the semester in which he or she received the grant. The district director or designee shall approve or deny an exemption request before the end of the semester in which the request was made. A student who has received approval for an exemption is not subject to the provisions of sub. (1) for the subsequent semester in which he or she is eligible for a TOP grant, following the approval of the exemption.
(3) A student may apply for one exemption under sub. (2).
(4) The district director or designee shall seek a full refund of all TOP grant monies from any student awarded such funds if the district director or designee finds, after giving written notice and an opportunity to be heard, that the student received a grant as a result of deception, fraud, misinformation, or error in providing his or her registration information for an initial or continued TOP grant award. A student who is found to have received a grant award based upon any of the aforementioned reasons forfeits any remaining eligibility for subsequent TOP grant awards. No student may be required to refund any grant award if the findings result in a determination that the award was due to error not attributable to the student. In such a case, the student is no longer eligible for any remaining TOP grant awards.
Written Comments
The public record on this proposed rule will be held open until the close of business on Thursday, March 7, 2001. Written comments from people unable to attend the public hearing or who want to supplement testimony offered at the hearing may be submitted for inclusion in the summary of public comments submitted to the Legislature. Any such comments should be submitted to the Contact Person listed below. Written comments will be given the same consideration as testimony presented at the hearing. People submitting comments will not receive individual responses.
Initial Regulatory Flexibility Analysis
These proposed rules will have no adverse impact on small businesses.
Fiscal Estimate
A copy of the proposed rules and the full fiscal estimate may be obtained from the Wisconsin Technical College System Board upon request.
Contact Person
Questions concerning these rules may be directed to Morna K. Foy, Policy Analyst, Wisconsin Technical College System Board, 310 Price Place, P.O. Box 7874, Madison, Wisconsin 53707-7874.
It is the policy of the WTCSB to provide accommodations to person with disabilities that may affect their ability to access or participate in WTCSB activities. Persons may request assistance or accommodation for the scheduled public hearing by contacting Ms. Foy at (608) 266-2449, or accessing the TTY line at (608) 267-2483 on or before February 20.
Notice of Hearing
NOTICE IS HEREBY GIVEN that pursuant to section
14.64 (2) (e), Stats., and s.
15,
2001 Wis. Act 7, and interpreting s.
14.64 et seq., Stats., the Office of the State Treasurer, on behalf of the College Savings Program Board, will hold a public hearing on both the Board's emergency rulemaking order and proposed permanent order creating Chapter
Treas 1 of the Wis. Adm. Code, relating to the College Savings Program.
Hearing Date, Time and Location
Date: Tuesday, March 5, 2002
Time: 10:00 a.m.
Location: Conference Room Firstar Building
1 South Pinckney Street, 5th Floor Madison, WI 53703
The hearing is being held in an accessible facility. Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are also urged to submit facts, opinions and arguments in writing as well. Written comments from persons unable to attend the public hearing, or who wish to supplement testimony offered at the hearing, should be directed to: Marty Olle, Office of the State Treasurer, P.O. Box 7871, Madison, WI 53707-7871. Written comments must be received by March 15, 2002, to be included in the rule-making proceedings.
Proposed order
The Wisconsin College Savings Program Board creates Treas 1 of the Wisconsin Administrative Code.
Analysis prepared by the Office of the State Treasurer
Statutes interpreted: s.
14.64 et seq., Stats.
The Wisconsin College Savings Program Board establishes a rule for the operation of the College Savings Program. The rule is designed to grant flexibility to program participants wherever possible, while enabling the State and its private-sector partners to administer the program in a manner that protects the program's financial integrity and viability. Maintaining eligibility as a “qualified tuition program" pursuant to section
529 of the Internal Revenue Code [
26 USC 529] is another primary objective. “529" programs are eligible for a number of federal tax benefits that are attractive to families saving for future college costs. Significant features of the rule are addressed below:
Sections
Treas 1.03,
1.04 and
1.05 describe who may open an account and how to open an account. Section
Treas 1.06 discusses designating a successor owner and describes how to change ownership of an account. Sections
Treas 1.07 and
1.08 define the account beneficiary and how to change the beneficiary on an account.
Section
Treas 1.09 details how to make contributions to an account, including minimum and maximum contribution limits, and how to “rollover" an account balance to another section 529 program. IRS requirements relating to investment direction are also detailed.
Sections
Treas 1.11,
1.12 and
1.13 describe account withdrawals, distributions and refunds. Special circumstances are also provided for in these sections, such as the death or disability of the beneficiary or receipt of a scholarship by a beneficiary.
Section
Treas 1.14 sets forth conditions under which the Board may terminate an owner's account. Sections
Treas 1.15 and
1.16 address related fees and penalties.
Text of rule
Treas 1.01 Purpose and Analysis. This rule establishes the procedures, standards and eligibility requirements for investment in accounts under the Wisconsin college savings program, into which a participant may invest funds to be used by individual beneficiaries to pay the cost of attendance at an institution of higher education. The Wisconsin college savings program is established as a qualified tuition program pursuant to section
529 of the internal revenue code [
26 USC 529], and is administered by the Office of State Treasurer.
Treas 1.02 Definitions. In this chapter:
1. “
Account" means a formal record of transactions maintained for a particular designated beneficiary to meet qualified higher education expenses under the program.
2. “Account owner" means the person who is entitled to select or change the designated beneficiary of an account, or designate any person other than the designated beneficiary to whom funds may be paid from the account.
3. “Board" means the Wisconsin college savings program board.
4. “Cash" includes checks, money orders, wire transfers, or electronic funds transfers through payroll deduction, automatic contribution plans or similar methods, but does not include currency.
5.
“Contribution" means any payment directly allocated to an account for the benefit of a designated beneficiary or that is used to pay late fees or administrative fees associated with the account.
6.
“Department" means the Wisconsin department of administration.
7.
“Designated beneficiary" has the meaning found in section
529(e)(1) of the internal revenue code.
8.
“Eligible Educational Institution" has the meaning found in section
529(e)(5) of the internal revenue code.
9.
“Maximum contribution limit" is the sum total market value amount established by the board that may be accumulated in the accounts of a designated beneficiary to meet qualified higher education expenses.
10.
“Member of the family" has the meaning found in section
529(e)(2) of the internal revenue code.
11.
“Non-qualified distribution" means any distribution that is not a qualified distribution.
12.
“Participation agreement" means the contract between an account owner and the board setting forth the terms and conditions under which the account owner participates in the program.
13.
“Person" includes an individual, a trust, or a body corporate or politic.
14.
“Program" means the qualified tuition program established under s.
14.64, Stats.
15.
“Program manager" means the entity under contract with the department to serve as the program administrator, marketing agent and investment manager of the program.
16.
“Qualified distribution" means any distribution of funds, as defined in section
529 of the internal revenue code, for qualified higher education expenses from an account pursuant to a distribution notice from the account owner.
17.
“Qualified higher education expenses" has the meaning found in section
529(e)(3) of the internal revenue code.
18.
“Qualified tuition program" means a savings program to help defray the cost of college expenses under section
529 of the internal revenue code
.
19. “Rollover contribution" means the transfer of all or part of an account from one qualified tuition program account to another qualified tuition program account.
Treas 1.03 Account owner eligibility. Any person legally able to contract under applicable state law is eligible to establish an account for the benefit of a designated individual. There shall be only one account owner per account.
Treas 1.04 Opening an account. (1) To open an account, an applicant shall submit a properly completed and signed application, which incorporates the program description and participation agreement, to the program manager. A contribution may be made as provided in Treas 1.09 or by any alternate method established by the board or the program manager.
(2) An applicant must select an available investment option in which all contributions to the account shall be invested. After an account has been opened, the investment option selected may only be changed as permitted under section
529 of the internal revenue code and any regulations issued thereunder.
(3) The participation agreement shall be accompanied by a program description disclosing the program characteristics, including the investment options, investment risks, program fees, and other information as determined by the board and the program manager.
(4) Acceptance by the program manager of application materials, the initial contribution, or selection of contribution method for processing shall not be deemed an agreement to open an account.
(5) The program manager shall accept applications to open accounts and accept subsequent contributions for a designated beneficiary in the order they are received, up to the maximum contribution limit.
Treas 1.05 Refusal to open an account. The program manager or the board may refuse to open an account for the following reasons:
(1)
The applicant is not an eligible account owner.
(2)
The applicant has not provided all of the information required in the application.
(3)
The maximum contribution level for the designated beneficiary will be exceeded.
(4)
The execution of a participation agreement violates any federal or state law.
(5)
The board determines that the number of accounts in the program should be limited.
Treas 1.06 Change of account ownership. An account owner may designate a successor who shall become the new account owner automatically upon his or her death. This designation may be made at any time by submitting a written designation of the successor to the program manager containing the information required by the program manager and the board. Designation of a successor shall be effective upon registration in the records of the program manager.
(1) If a change in the ownership of an account is required by a court order directing such change, or by an affidavit or declaration that is recognized under applicable law as requiring transfer of ownership upon death without a court order, such change shall be effective upon receipt by the program manager unless otherwise required by law.
(2) Any other request to transfer ownership to a new account owner must be made by submitting to the program manager a written designation of a new account owner containing the information required by the program manager and the board. Transfer of ownership shall not be effective until registered in the records of the program manager.
Treas 1.07 Designated beneficiary. Any individual regardless of age or relationship to the account owner, including the account owner, may be a designated beneficiary under the program. There shall be only one designated beneficiary per account. Subject to the maximum contribution level, any number of accounts may be opened for a single designated beneficiary.
Treas 1.08 Change of designated beneficiary. (1) Only an account owner may change the designated beneficiary of an account. The designated beneficiary may only be changed to a member of the family of that designated beneficiary.
(2) To change a designated beneficiary, the account owner must submit a written request to the program manager containing all the information required by the program manager and the board.
(3) Upon receipt of the written request, the program manager shall register the information regarding the newly designated beneficiary in the records of the program. The change of the designated beneficiary shall be effective upon registration.
Treas 1.09 Contributions. Any person may make a contribution to an account of a designated beneficiary. Contributions shall be made only in cash.
(1) MAXIMUM CONTRIBUTION LIMIT. Contributions to the accounts established for a designated beneficiary shall not, in the aggregate, exceed that amount necessary to provide for the qualified higher education expenses of the designated beneficiary. The board shall establish from time to time the maximum amount that may be contributed in the aggregate to the accounts of an individual designated beneficiary. Contributions in excess of that limit shall not be accepted and shall be returned to the contributor.
(2) MINIMUM CONTRIBUTION LIMIT. The minimum amount contributed at the time an account is opened under Treas 1.04, and the minimum amount of any additional contribution to be made to an account shall be established from time to time by the board.
