AB654: Bill Text

AB654,6,20 6. Receive distributions from a college savings account if no other individual is designated.

AB654,6,23 (b) 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.

AB654,7,4 (c) 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.

AB654,7,6 (d) An account owner under this section may terminate his or her college savings account if any of the following occurs:

AB654,7,7 1. The beneficiary dies or is permanently disabled.

AB654,7,9 2. The beneficiary graduates from high school but is unable to gain admission to an institution of higher education after a good faith effort.

AB654,7,11 3. The beneficiary attended an institution of higher education but involuntarily failed to complete the program in which he or she was enrolled.

AB654,7,12 4. The beneficiary is at least 18 years old and one of the following applies:

AB654,7,13 a. The beneficiary has not graduated from high school.

AB654,7,14 b. The beneficiary has decided not to attend an institution of higher education.

AB654,7,16 c. The beneficiary attended an institution of higher education but voluntarily withdrew without completing the program in which he or she was enrolled.

AB654,7,17 5. Other circumstances determined by the board to be grounds for termination.

AB654,7,21 (e) The board shall 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.

AB654,7,24 (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.

AB654,8,4 (5) Report. 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.

AB654,8,8 (6) Construction. 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.

AB654,8,11 (7) Exemption from garnishment, attachment and execution; security for loan. (a) A beneficiary's right to qualified withdrawals under this section is not subject to garnishment, attachment, execution or other process of law.

AB654,8,13 (b) No interest in a college savings account may be pledged as security for a loan.

AB654,8,17 (8) Financial aid calculations. No state agency, University of Wisconsin System institution or college campus or technical college may include the balance of a college savings account in the calculation of a beneficiary's eligibility for state financial aid for higher education.

AB654, s. 10 Section 10. 15.07 (1) (b) 2. of the statutes is created to read:

AB654,8,19 15.07 (1) (b) 2. College savings program board.

AB654, s. 11 Section 11. 16.25 of the statutes is created to read:

AB654,8,23 16.25 College savings program manager. (1) The department shall determine the factors to be considered in selecting a person to serve as manager of the program under s. 14.64, which shall include:

AB654,8,24 (a) The person's ability to satisfy record-keeping and reporting requirements.

AB654,8,25 (b) The fees, if any, that the person proposes to charge account owners.

AB654,9,2 (c) The person's plan for promoting the college savings program and the investment that the person is willing to make to promote the program.

AB654,9,4 (d) The minimum initial contribution or minimum contributions that the person will require.

AB654,9,5 (e) The ability and willingness of the person to accept electronic contributions.

AB654,9,7 (f) The ability of the person to augment the college savings program with additional, beneficial services related to the program.

AB654,9,11 (2) The department shall solicit competitive sealed proposals under s. 16.75 (2m) from nongovernmental persons to serve as manager of the college savings program. The department shall select the manager based upon factors determined by the department under sub. (1).

AB654,9,13 (3) The contract between the department and the manager shall ensure all of the following:

AB654,9,15 (a) That the manager reimburses the state for all administrative costs that the state incurs for the college savings program.

AB654,9,18 (b) That a firm of certified public accountants selected by the manager annually audits the college savings program and provides a copy of the audit to the college savings program board.

AB654,9,22 (c) That each account owner receives a quarterly statement that identifies the contributions to the college savings account during the preceding quarter, the total contributions to and the value of the college savings account through the end of the preceding quarter and any distributions made during the preceding quarter.

AB654, s. 12 Section 12. 16.75 (2m) (a) of the statutes is amended to read:

AB654,9,25 16.75 (2m) (a) If Except as otherwise required by law, if the secretary or his or her designee determines that the use of competitive sealed bidding is not practicable or not advantageous to this state, the department may solicit competitive sealed proposals. Each request for competitive sealed proposals shall state the relative importance of price and other evaluation factors.

AB654, s. 13 Section 13. 20.585 (1) (gm) of the statutes is created to read:

AB654,10,9 20.585 (1) (gm) General program operations; reimbursement. All moneys received from the manager of the college savings program under s. 16.25 (3) (a) for general programs operations. No moneys may be encumbered under this paragraph on or after the first day of the 25th month beginning after the effective date of this paragraph .... [revisor inserts date].

AB654, s. 14 Section 14. 815.18 (3) (p) of the statutes is created to read:

AB654,10,12 815.18 (3) (p) College savings accounts. An interest in a college savings account under s. 14.64.

AB654, s. 15 Section 15 . Nonstatutory provisions.

AB654,10,22 (1) (a ) Notwithstanding section 15.07 (1) (b) 2. of the statutes, as created by this act, the governor may provisionally appoint initial members of the college savings program board under section 14.57 of the statutes, as created by this act. Those provisional appointments are in force until the governor withdraws them or the senate acts upon them, and if the senate confirms them, they continue for the remainder of the unexpired terms, if any, of the members and until successors are chosen and qualify. A provisional appointee may exercise all the powers and duties of board membership to which the person is appointed during the time in which the appointee qualifies.

AB654,11,4 (b) A provisional appointment under paragraph (a) that the governor withdraws lapses upon withdrawal and creates a vacancy for the provisional appointment of another initial member of the college savings program board. A provisional appointment that the governor makes under paragraph (a) and that the senate rejects lapses upon rejection and creates a vacancy for nomination and appointment under section 15.07 (1) (b) 2. of the statutes, as created by this act, of another initial board member.

AB654,11,10 (2) Notwithstanding the length of the terms specified in section 14.57 (3) and (6) of the statutes, as created by this act, the initial terms of the member appointed under section 14.57 (3) of the statutes, as created by this act, and of 2 of the members appointed under section 14.57 (6) of the statutes, as created by this act, expire on May 1, 2003, and the initial terms of 4 of the members appointed under section 14.57 (6) of the statutes, as created by this act, expire on May 1, 2005.

AB654, s. 16 Section 16. Effective dates. This act takes effect on the first day of the 10th month following publication, except as follows:

AB654,11,14 (1) The treatment of sections 14.57 and 15.07 (1) (b) 2. of the statutes and Section 15 of this act take effect the day after publication.

AB654,11,15 (End)