AB1011,3,1413
3. The individual or the beneficiary is a resident of this state when the contract
14is executed.
AB1011,3,1515
4. The beneficiary is the child or grandchild of the individual.
AB1011,3,1716
(b) The contract shall specify the anticipated academic year of the beneficiary's
17initial enrollment in an institution of higher education.
AB1011,3,1918
(c) The department may not enter into more than one contract on behalf of the
19same beneficiary.
AB1011,4,2
20(4) Number of tuition units purchased. An individual who enters into a
21contract under sub. (3) may purchase tuition units at any time and in any number,
22except that the total number of tuition units purchased on behalf of a single
23beneficiary may not exceed the number necessary to pay for 4 years of full-time
24attendance as a resident undergraduate at the institution within the University of
1Wisconsin System that has the highest resident undergraduate tuition, as
2determined by the department in the anticipated academic years of their use.
AB1011,4,8
3(5) Payment of tuition. (a) If an individual named as beneficiary in a contract
4under sub. (3) attends an institution of higher education in the United States, each
5tuition unit purchased on his or her behalf entitles that beneficiary to apply toward
6the payment of tuition at the institution an amount equal to 1% of the weighted
7average tuition of bachelor's degree-granting institutions within the University of
8Wisconsin System for the year of attendance, as determined under sub. (2) (a).
AB1011,4,109
(b) Upon request by the beneficiary, the department shall pay to the institution
10in each semester of attendance the lesser of the following:
AB1011,4,1311
1. An amount equal to the value of each tuition unit, as determined under par.
12(a), multiplied by the number of tuition units purchased on behalf of the beneficiary
13and not used.
AB1011,4,1414
2. An amount equal to the institution's tuition for that semester.
AB1011,4,16
15(6) Termination of contract. (a) A contract under sub. (3) may be terminated
16by the individual entering into the contract if any of the following occurs:
AB1011,4,1717
1. The beneficiary dies or is permanently disabled.
AB1011,4,1918
2. The beneficiary graduates from high school but is unable to gain admission
19to an institution of higher education after a good faith effort.
AB1011,4,2120
3. The beneficiary attended an institution of higher education but involuntarily
21failed to complete the program in which he or she was enrolled.
AB1011,4,2222
4. The beneficiary is at least 18 years old and one of the following applies:
AB1011,4,2323
a. The beneficiary has not graduated from high school.
AB1011,4,2424
b. The beneficiary has decided not to attend an institution of higher education.
AB1011,5,2
1c. The beneficiary attended an institution of higher education but voluntarily
2withdrew without completing the program in which he or she was enrolled.
AB1011,5,43
5. Other circumstances determined by the department to be grounds for
4termination.
AB1011,5,85
(b) The department shall terminate a contract under sub. (3) if any of the
6tuition units purchased under the contract remain unused 10 years after the
7anticipated academic year of the beneficiary's initial enrollment in an institution of
8higher education, as specified in the contract.
AB1011,5,15
9(7) Refunds. (a) When a beneficiary completes the program in which he or she
10is enrolled, if the beneficiary has not used all of the tuition units purchased on his
11or her behalf, the department shall refund to the individual who entered into the
12contract an amount equal to 1% of the weighted average tuition in the academic year
13in which the beneficiary completed the program, as determined under sub. (2) (a),
14multiplied by the number of tuition units purchased by the individual and not used
15by the beneficiary.
AB1011,5,2016
(b) If a contract is terminated under sub. (6) (a) 1., 2. or 3., the department shall
17refund to the individual who entered into the contract an amount equal to 1% of the
18weighted average tuition in the academic year in which the contract is terminated,
19as determined under sub. (2) (a), multiplied by the number of tuition units purchased
20by the individual and not used by the beneficiary.
AB1011,5,2521
(c) If a contract is terminated under sub. (6) (a) 4. or (b), the department shall
22refund to the individual who entered into the contract an amount equal to 99% of the
23amount determined under par. (b). If a contract is terminated under sub. (6) (a) 4.,
24the department may not issue a refund for one year following receipt of the notice of
25termination and may not issue a refund of more than 100 tuition units in any year.
AB1011,6,3
1(d) If a contract is terminated under sub. (6) (a) 5., the department shall refund
2to the individual who entered into the contract the amount under par. (b) or under
3par. (c), as determined by the department.
AB1011,6,104
(e) If the beneficiary is awarded a scholarship, tuition waiver or similar subsidy
5that cannot be converted into cash by the beneficiary, the department shall refund
6to the individual who entered into the contract, upon his or her request, an amount
7equal to the value of the tuition units that are not needed because of the scholarship,
8waiver or similar subsidy and that would otherwise have been paid by the
9department on behalf of the beneficiary during the semester in which the beneficiary
10is enrolled.
AB1011,6,1211
(f) Except as provided under par. (c), the department shall determine the
12method and schedule for the payment of refunds under this subsection.
AB1011,6,16
13(8) Exemption from garnishment, attachment and execution. Moneys
14deposited in the tuition trust fund and a beneficiary's right to the payment of tuition
15under this section are not subject to garnishment, attachment, execution or any
16other process of law.
AB1011,6,20
17(9) Contract with actuary. The department shall contract with an actuary or
18actuarial firm to evaluate annually whether the assets in the tuition trust fund are
19sufficient to meet the obligations of the department under this section and to advise
20the department on setting the price of a tuition unit under sub. (2) (b).
AB1011,7,2
21(10) Reports. (a) Annually, the department shall submit a report to the
22governor, and to the appropriate standing committees of the legislature under s.
2313.172 (3), on the program under this section. The report shall include any
24recommendations for changes to the program that the department determines are
1necessary to ensure the sufficiency of the tuition trust fund to meet the department's
2obligations under this section.
AB1011,7,83
(b) The department shall submit a quarterly report to the state investment
4board projecting the future cash flow needs of the tuition trust fund. The state
5investment board shall invest moneys held in the tuition trust fund in investments
6with maturities and liquidity that are appropriate for the needs of the fund as
7reported by the department in its quarterly reports. All income derived from such
8investments shall be credited to the fund.
AB1011,7,10
9(11) Construction. Nothing in this section guarantees an individual's
10admission to, retention by or graduation from any institution of higher education.
AB1011,7,12
11(12) Additional department duties and powers. (a) The department shall do
12all of the following:
AB1011,7,1513
1. Annually publish a list of the institutions of higher education located in this
14state and the number of tuition units necessary to pay for one year of full-time
15attendance as a resident undergraduate at each institution.
AB1011,7,1616
2. Actively promote the program under this section.
AB1011,7,1717
3. Promulgate rules to implement and administer this section.
AB1011,7,1918
(b) The department may contract with any person for the management and
19operation of the program or any part of the program under this section.
AB1011, s. 2
20Section
2. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
21the following amounts for the purposes indicated:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
AB1011, s. 3
1Section
3. 20.505 (9) of the statutes is created to read:
AB1011,8,62
20.505
(9) College tuition prepayment program. (a)
Administrative expenses;
3initial funds. The amounts in the schedule for the administrative expenses of the
4college tuition prepayment program under s. 16.24, including the expense of
5promoting the program. No funds may be expended from this appropriation after
6June 30, 1997.
AB1011,8,87
(q)
Payment of tuition. From the tuition trust fund, a sum sufficient for the
8payment of tuition under s. 16.24 (5).
AB1011,8,109
(r)
Payment of refunds. From the tuition trust fund, a sum sufficient for the
10payment of refunds under s. 16.24 (7).
AB1011,8,1311
(s)
Administrative expenses. From the tuition trust fund, the amounts in the
12schedule for the administrative expenses of the college tuition prepayment program
13under s. 16.24, including the expense of promoting the program.
AB1011, s. 4
14Section
4. 25.14 (1) of the statutes is amended to read:
AB1011,9,915
25.14
(1) There is created a state investment fund under the jurisdiction and
16management of the investment board (hereinafter referred to as "board") to be
17operated as an investment trust for the purpose of managing the securities of all the
18state's funds consisting of the funds specified in s. 25.17 (1) except the state life fund,
19fixed retirement investment trust, variable retirement investment trust, capital
20improvement fund, bond security and redemption fund, state building trust fund, the
1state housing authority reserve fund, the children's trust fund, the patients
2compensation fund,
the tuition trust fund, funds which under article X of the
3constitution are controlled and invested by the board of commissioners of public
4lands, funds which are required by specific provision of law to be controlled and
5invested by any other authority, the university trust funds and the trust funds of the
6state universities except that the respective authorities controlling the investment
7of any such excluded fund may authorize the transfer of any temporary cash assets
8of any such excluded fund to the state investment fund in accordance with subs. (2)
9and (3).
AB1011, s. 5
10Section
5. 25.17 (1) (vm) of the statutes is created to read:
AB1011,9,1111
25.17
(1) (vm) Tuition trust fund (s. 25.80).
AB1011, s. 6
12Section
6. 25.80 of the statutes is created to read:
AB1011,9,15
1325.80 Tuition trust fund. There is established a separate nonlapsible trust
14fund designated as the tuition trust fund, consisting of all revenue from enrollment
15fees and the sale of tuition units under s. 16.24.
AB1011, s. 7
16Section
7. 815.18 (3) (o) of the statutes is created to read:
AB1011,9,1717
815.18
(3) (o)
Tuition units. Tuition units purchased under s. 16.24.
AB1011,9,19
19(1)
This act takes effect on July 1, 1996.