AB1039: Bill Text

LRB-5584/1

MPG:kjf

2017 - 2018 LEGISLATURE

2017 Assembly BILL 1039

March 21, 2018 - Introduced by Representatives Spreitzer, Pope, Subeck, Sinicki and Zamarripa, cosponsored by Senator Vinehout. Referred to Committee on Constitution and Ethics.

AB1039,4,2 An Act to repeal 14.58 (4), 16.401 (title), 16.401 (intro.), 16.401 (1), 20.566 (4), 20.907 (5) (e) 12e. and 20.907 (5) (e) 12r.; to renumber 16.401 (3), 16.401 (7) (intro.) and (a) to (c), 16.401 (14), 16.401 (15) and 20.505 (1) (gc); to renumber and amend 15.105 (25m), 16.40 (21), 16.401 (2), 16.401 (4), 16.401 (5), 16.401 (6), 16.401 (8), 16.401 (9), 16.401 (10), 16.401 (11), 16.401 (12), 16.401 (13), 16.64, 16.641, 16.642, 20.505 (1) (tb), 20.505 (1) (td), 20.505 (1) (tf), 20.505 (1) (th), 20.505 (1) (tj), 20.505 (1) (tL), 20.505 (1) (tn) and 20.505 (1) (tp); to amend 14.58 (1) (intro.), 16.255 (1) (intro.), 16.255 (3) (d), 16.412, 16.415 (1), 16.53 (5), 16.53 (10) (a), 16.53 (10) (b), 18.60 (3), 19.43 (7), 20.437 (2) (qm), 20.505 (1) (kj), 20.585 (1) (k), 20.906 (1), 20.906 (4), 20.906 (5), 20.906 (6), 20.907 (2), 20.907 (5) (a), 20.907 (5) (b), 20.907 (5) (c), 20.907 (5) (d), 20.909 (2), 20.912 (1), 20.912 (3), 20.912 (4), 20.912 (5), 20.920 (2) (a), 20.929, 23.49, 23.85, 24.17 (1) (intro.), 24.17 (2), 24.20, 24.25 (1), 24.29, 24.32 (2) (a) 2., 24.33 (1) (c), 24.64, 24.69 (1), 24.71 (2), 25.14 (3), 25.17 (2) (f), 25.17 (61), 25.19 (3), 25.19 (4), 25.31 (1), 25.50 (3) (a), 25.50 (4), 25.50 (5m) (a), 25.50 (7), 25.50 (8) (b), 25.50 (9), 25.50 (10), 25.80, 25.85, 25.853, 25.855, 26.14 (4), 26.30 (9) (b) (intro.), 29.983 (1) (e), 29.983 (1) (f), 29.983 (2), 29.985 (1) (c), 29.985 (1) (d), 29.987 (1) (c), 29.987 (1) (d), 29.989 (1) (c), 29.989 (1) (d), 29.99 (3), 29.99 (4), 34.08 (2), 36.51 (6), 38.36 (6), 40.04 (3) (c), 43.70 (3), 45.45 (5) (b), 45.51 (11), 46.973 (3), 48.275 (2) (d), 48.715 (3) (a) 3., 49.19 (3) (b), 49.19 (14) (b), 49.498 (16) (g), 49.687 (3) (a), 49.688 (6) (a), 50.03 (5g) (c) 1. c., 50.034 (8) (d), 50.035 (11) (d), 50.04 (5) (f), 50.377 (4), 50.55 (1) (e), 50.98 (5), 51.605 (2), 55.107 (2), 59.25 (3) (f), 59.25 (3) (k), 59.25 (3) (L), 59.25 (3) (m), 59.25 (3) (p), 66.0114 (1) (bm), 66.0114 (3) (c), 66.0517 (3) (b) 1., 69.22 (1m), 69.22 (1q) (intro.), 70.385, 70.39 (4) (b), 71.05 (6) (a) 26. (intro.), 71.05 (6) (a) 26. c., 71.05 (6) (b) 23., 71.05 (6) (b) 28. h., 71.05 (6) (b) 31., 71.05 (6) (b) 32. (intro.), 71.05 (6) (b) 32m., 71.05 (6) (b) 33. (intro.), 71.10 (5) (h) (intro.), 71.10 (5e) (h) (intro.), 71.30 (10) (h) (intro.), 71.30 (11) (h) (intro.), 71.74 (13) (a), 71.74 (13) (b), 71.80 (1) (e), 71.80 (16) (b), 71.80 (17), 71.91 (5) (h), 71.91 (7) (e), 72.24, 73.03 (6), 73.10 (6), 74.25 (1) (a) 5., 74.27, 74.30 (1) (e), 74.30 (1m), 76.13 (2), 76.13 (3), 76.15 (2), 76.22 (3), 76.24 (1), 76.28 (4) (b), 76.39 (4) (d), 76.48 (3), 76.48 (5), 84.11 (4), 84.12 (4), 85.14 (1) (b), 85.14 (2), 87.07 (4), 87.11 (2), 87.13, 93.31, 100.261 (2), 100.261 (3) (a), 100.261 (3) (b), 100.60 (8) (d) 3., 101.573 (1), 101.573 (3), 101.573 (4), 102.28 (7) (a), 102.63, 102.85 (4) (c), 102.85 (4) (d), 108.15 (6) (c), 108.15 (6) (d) (intro.), 108.15 (6) (e), 108.20 (2), 115.345 (5), 125.14 (2) (e), 125.14 (2) (f), 139.10 (1), 139.39 (4), 145.12 (5) (c), 146.903 (5) (d), 150.963 (3) (e), 165.30 (3), 165.755 (3), 165.755 (4), 165.755 (5), 165.755 (6), 165.755 (7), 167.31 (5) (c), 167.31 (5) (d), 169.46 (1) (c), 169.46 (1) (d), 169.46 (2) (c), 169.46 (2) (d), 177.01 (1), 177.23 (2) (e), 180.1440, 181.1440, 185.75 (2), 186.235 (11) (p) 3., 193.735 (1) (intro.), 193.905 (4) (b), 194.51, 195.60 (3), 195.60 (4) (d), 195.60 (5), 196.199 (3) (d), 196.85 (3), 196.85 (4) (d), 196.85 (5), 215.33 (3) (b) 2., 217.11 (5), 220.08 (14), 220.08 (20), 223.02 (1) (intro.), 223.02 (1) (b), 223.02 (1) (c), 223.02 (1) (d), 223.02 (1) (e), 223.20 (3), 224.77 (1m) (c) 1., 253.06 (4) (c) 2., 253.06 (5) (e), 254.45 (4) (b), 254.59 (2), 254.59 (5), 281.99 (4), 299.93 (3), 299.93 (4), 301.105 (intro.), 344.185 (2) (e) 2., 345.08, 346.177 (3), 346.177 (4), 346.495 (3), 346.495 (4), 346.65 (4r) (c), 346.65 (4r) (d), 346.655 (2), 346.655 (3), 346.657 (2), 349.04 (3), 349.04 (4), 350.115 (1) (c), 350.115 (1) (d), 351.07 (1g), 562.02 (1) (g), 565.37 (3), 601.13 (1) (intro.), 601.13 (3) (intro.), 601.13 (5), 601.13 (6), 601.13 (8) (intro.), 601.13 (11), 601.45 (3), 601.62 (4), 604.04 (4), 604.05, 604.06 (1), 604.07, 605.30, 611.76 (4) (e), 645.73 (1), 645.73 (2), 704.90 (5) (b) 2. d., 704.90 (6) (b), 707.28 (3) (f) 2. b., 753.07 (2) (a), 753.07 (3) (a), 753.07 (4), 757.05 (1) (b), 757.05 (1) (c), 757.05 (1) (d), 778.135, 778.17, 812.42 (2) (c), 813.31, 814.60 (1), 814.61 (1) (a), 814.61 (3), 814.61 (7) (a), 814.61 (7) (b), 814.61 (8) (c), 814.61 (8) (d), 814.62 (1), 814.62 (3) (d) 2., 814.62 (3) (d) 3., 814.63 (5), 814.65 (1), 814.66 (3), 815.18 (3) (o), 815.18 (3) (p), 863.37 (2) (a), 863.39 (1), 863.39 (3) (a), 938.275 (2) (d), 938.34 (8d) (b), 938.34 (8d) (c), 961.41 (5) (b), 973.042 (4), 973.042 (5), 973.042 (6), 973.043 (2), 973.043 (4), 973.045 (2), 973.045 (4), 973.046 (2), 973.046 (3), 973.046 (4), 973.055 (2), 973.055 (3), 973.057 (2) (a), 973.057 (2) (b), 973.057 (3), 978.12 (5) (c) 1., 978.13 (1) (b), 978.13 (1) (c) and 978.13 (1) (d); and to create 14.58 (2m), 14.58 (8) (d), 14.58 (21), 20.585 (1) (a), 20.585 (1) (e), 20.585 (1) (j), 20.585 (1) (jt), 20.585 (1) (kf), 20.585 (1) (km) and 20.585 (2) (title) of the statutes; relating to: the duties and functions of the Department of Administration, the Department of Revenue, and the Office of the State Treasurer and making appropriations.

Analysis by the Legislative Reference Bureau

This bill transfers the following duties and functions back to the Office of the State Treasurer (state treasurer) after having been transferred from that office at various times, as indicated below:

1. Cash management functions. In 2003 Wisconsin Act 33, the state's cash management functions and related duties were transferred from the state treasurer to the Department of Administration. This bill transfers those functions and related duties back to the state treasurer.

2. Local government investment pool. The local government pooled-investment fund (fund) consists of moneys placed in the state investment fund by local governmental units. 2011 Wisconsin Act 32 transferred the state treasurer's duties relating to the fund, including prescribing the mechanisms and procedures for deposits and withdrawals into and from the fund, to DOA. This bill transfers those duties back to the state treasurer.

3. Unclaimed property program. 2013 Wisconsin Act 20 transferred the state's unclaimed property program from the state treasurer to the Department of Revenue. This bill transfers the program back to the state treasurer.

4. College savings programs. 2011 Wisconsin Act 32 attached the College Savings Program Board, which had previously been attached to the state treasurer, to DOA. That board administers the EdVest program, which is a college savings plan established to enable families to contribute moneys to accounts for the college expenses of dependents. This bill reattaches the College Savings Program Board to the state treasurer and requires the state treasurer to administer the state's other college savings program, which was also transferred from the state treasurer to DOA under 2011 Wisconsin Act 32.

5. Administrative services. The bill transfers to the state treasurer the duty to provide administrative services to the Board of Commissioners of Public Lands. Currently, DOA provides those services, but the state treasurer had previously done so.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB1039,1 Section 1. 14.58 (1) (intro.) of the statutes is amended to read:

AB1039,5,6 14.58 (1) Sign checks, share drafts, and other drafts have custody of moneys. (intro.) Sign Receive and have charge of all moneys paid into the treasury and any other moneys received by officers and employees of state agencies; pay out the moneys as directed by law, except as provided in ss. 16.52 (7), 20.907 (5) (b), 20.920, and 20.929; and sign checks, share drafts, and other drafts on depositories in which moneys may be deposited in one of the following methods:

AB1039,2 Section 2. 14.58 (2m) of the statutes is created to read:

AB1039,5,9 14.58 (2m) Administrative services. Provide all administrative services to the board of commissioners of public lands.

AB1039,3 Section 3. 14.58 (4) of the statutes is repealed.

AB1039,4 Section 4 . 14.58 (8) (d) of the statutes is created to read:

AB1039,5,13 14.58 (8) (d) Any other information pertaining to the duties of the state treasurer, as determined by the state treasurer or required by the governor.

AB1039,5 Section 5 . 14.58 (21) of the statutes is created to read:

AB1039,5,17 14.58 (21) Pay credit card use charges. From moneys received under ss. 59.25 (3) (j) and (k) and 85.14, pay the charges under ss. 23.49 and 85.14 (1) (b) and (2) from the appropriation under s. 20.585 (1) (km).

AB1039,6 Section 6. 15.105 (25m) of the statutes is renumbered 14.57, and 14.57 (intro.) and (1), as renumbered, are amended to read:

AB1039,5,23 14.57 College savings program board Same, attached boards. (intro.) There is created a college savings program board that is attached to the department of administration state treasurer under s. 15.03 and that consists of all of the following members:

AB1039,5,24 (1) The secretary of administration state treasurer or his or her designee.

AB1039,7 Section 7 . 16.255 (1) (intro.) of the statutes is amended to read:

AB1039,6,2 16.255 (1) (intro.) The department shall determine the factors to be considered in selecting a vendor of the program under s. 16.641 14.64, which shall include:

AB1039,8 Section 8 . 16.255 (3) (d) of the statutes is amended to read:

AB1039,6,5 16.255 (3) (d) That the vendor communicate to the beneficiary and account owner the requirements of s. 16.641 14.64 (8).

AB1039,9 Section 9. 16.40 (21) of the statutes is renumbered 14.58 (3) and amended to read:

AB1039,6,14 14.58 (3) Administrative services provided to the board of commissioners of public lands; accounting. Render an accounting to the board of commissioners of public lands for the costs of all administrative services provided by the department and other state agencies, as defined in s. 20.001 (1), state treasurer to the board. All moneys received from the board under s. 24.64 for the costs of administrative services provided by the department and other state agencies shall be deposited in the general fund.

AB1039,10 Section 10 . 16.401 (title) of the statutes is repealed.

AB1039,11 Section 11 . 16.401 (intro.) of the statutes is repealed.

AB1039,12 Section 12 . 16.401 (1) of the statutes is repealed.

AB1039,13 Section 13. 16.401 (2) of the statutes is renumbered 14.58 (2) and amended to read:

AB1039,6,21 14.58 (2) Issue receipts. Issue receipts for all money paid to the department state treasurer.

AB1039,14 Section 14. 16.401 (3) of the statutes is renumbered 14.58 (3).

AB1039,15 Section 15. 16.401 (4) of the statutes is renumbered 14.58 (4m) and amended to read:

AB1039,7,12 14.58 (4m) Pay on warrants sums authorized by law. (a) Pay out of the treasury, on demand, upon the warrants of the department of administration, except as provided in s. 20.929, such sums only as are authorized by law to be so paid, if there are appropriate funds therein to pay the same, and, when any sum is required to be paid out of a particular fund, pay it out of such fund only; and upon each such warrant, when payment is made in currency, take the receipt endorsed on or annexed thereto, of the payee therein named or an authorized agent or assignee. The secretary state treasurer shall accept telephone advice believed by him or her to be genuine from any public depository, as defined in s. 34.01 (5), stating that a specified amount of money has been deposited with such public depository for the credit of the state treasurer, and shall act upon such telephone advice as though it had been in writing.

AB1039,7,19 (b) When in the judgment of the secretary state treasurer balances in state public depository accounts are temporarily in excess of that required under par. (a), the treasurer, with the concurrence of the secretary of administration, may transfer the excess balance to authorize the preparation of a warrant in excess of the funds contained in the investment fund for the purpose of investment only. The earnings attributable to the investment of temporary excess balances shall be distributed as provided in sub. (14) (19).

AB1039,16 Section 16. 16.401 (5) of the statutes is renumbered 14.58 (5) and amended to read:

AB1039,8,2 14.58 (5) Account for interest. Pay into the treasury and account for all sums directly or indirectly received by the secretary treasurer by virtue of the secretary's treasurer's office, or as interest or compensation for the use, deposit, or forbearance of any state moneys in the secretary's treasurer's hands or under the secretary's treasurer's control.

AB1039,17 Section 17. 16.401 (6) of the statutes is renumbered 14.58 (6) and amended to read:

AB1039,8,16 14.58 (6) Keep cash and fund accounts. Keep records showing the number, date, and amount of each cash receipt issued by the department treasurer's office and classify said receipts by state funds; submit a summary statement of collections by fund together with a copy of each remittance advice in support thereof; keep also records showing the check, share draft, or other draft number, date, payee, and amount of each cash disbursement and classify said disbursements by state funds; keep a record of the date, payee, and amount of each disbursement made by a money transfer technique other than a check or draft and classify the disbursement by state fund; and verify at the end of each week the amounts shown by the secretary's treasurer's records to represent total cash balance and cash balances of individual state funds by comparing said amounts with corresponding balances appearing on records maintained by the department of administration.

AB1039,18 Section 18 . 16.401 (7) (intro.) and (a) to (c) of the statutes are renumbered 14.58 (8) (intro.) and (a) to (c).

AB1039,19 Section 19. 16.401 (8) of the statutes is renumbered 14.58 (9) and amended to read:

AB1039,9,12 14.58 (9) Submit biennial report. As part of the report submitted under s. 15.04 (1) (d), On or before October 15 of each odd-numbered year, submit to the governor and the chief clerk of each house of the legislature, for distribution to the legislature under s. 13.172 (2), a report containing the same information required of departments and independent agencies under s. 15.04 (1) (d). The report shall also include a statement showing for each of the 2 preceding fiscal years the cash balance in each state fund at the beginning of the fiscal year, the aggregate amount of receipts credited, and the aggregate amount of disbursements charged to each said fund during the fiscal year and the resultant cash balance in each state fund at the end of the fiscal year. This statement shall further show as of the end of each said 2 fiscal years, at par, the aggregate value of securities held for each state fund and the aggregate value of securities held in trust or deposited for safekeeping, and shall show the manner in which the total cash balance was accounted for by listing the balances on deposit in each state account in a public depository, deducting from the total of such balances the aggregate amount of checks, share drafts, or other drafts outstanding and adding thereto the aggregate amount of cash and cash items in office.

AB1039,20 Section 20. 16.401 (9) of the statutes is renumbered 14.58 (10) and amended to read:

AB1039,9,21 14.58 (10) Report certain payments. Whenever the secretary state treasurer or any state department shall remit to any county, city, town, or village any sum in payment of a state aid or other item, the remitter shall transmit a statement of the amount and purpose thereof to the clerk of such municipality. After the receipt thereof, the clerk of such municipality shall present such statement at the next regular meeting of the governing body and shall thereafter file and keep such statement for 6 years.

AB1039,21 Section 21. 16.401 (10) of the statutes is renumbered 14.58 (12) and amended to read:

AB1039,9,25 14.58 (12) Stamp checks and drafts. Cause to be plainly printed or stamped upon each check, share draft, and other draft issued by the secretary state treasurer the period of time, as determined by the secretary state treasurer but not to exceed one year, during which the check or other draft may be presented for payment. The secretary state treasurer shall cancel on his or her records any check or other draft that is not presented for payment within the prescribed time period and shall credit the amount thereof to the fund upon which it is drawn. Notice of such cancellation and credit shall immediately be submitted by the state treasurer to the department of administration.

AB1039,22 Section 22. 16.401 (11) of the statutes is renumbered 14.58 (13) and amended to read:

AB1039,10,23 14.58 (13) Provide services in connection with securities held in trust. Upon request therefor from any company, corporation, society, order, or association that has securities on deposit with the secretary state treasurer, in trust, mail to its address not to exceed 60 days before the same become due, any or all interest coupons; return to it any or all bonds, notes, or other deposits as they become due and are replaced by other securities; cut all interest coupons, make any endorsement of interest or otherwise on any such securities; and collect therefor from the company, corporation, society, order, or association making the request, a 25-cent fee for a single coupon cut, or for each entry of interest endorsed on a note or return of a bond, note, or other security, and a 10-cent fee for each additional coupon cut, or entry of interest endorsed on a note, bond, or other security, and may withhold any and all coupons cut or refuse endorsement of interest on securities until such fee is paid. Such fees shall be paid into the state treasury as a part of the general fund, and an extra charge may be required for postage or registered mail.

AB1039,23 Section 23. 16.401 (12) of the statutes is renumbered 14.58 (17) and amended to read:

AB1039,11,6 14.58 (17) Hold safekeeping receipts for federal securities. Whenever any federal securities are purchased under authority of any law and the secretary state treasurer is custodian thereof the secretary state treasurer may accept and hold safekeeping receipts of a federal reserve bank for such securities. Each such receipt shall be identified on its face with the name of the fund to which the securities described in the receipt belong.

AB1039,24 Section 24. 16.401 (13) of the statutes is renumbered 14.58 (18) and amended to read:

AB1039,11,16 14.58 (18) Sale of Sell investments. Whenever the department of administration draws a check, share draft, or other draft dated the next following business day upon a fund whose investment and collection is under the exclusive control of the investment board pursuant to s. 25.17 (1), and the receipts of the state treasurer are insufficient to permit a disbursement from said fund in the amount of such check, share draft, or other draft, the investment board shall sell investments owned by such fund for delivery in time to provide sufficient money to cover such check, share draft, or other draft on the date that it bears.

AB1039,25 Section 25 . 16.401 (14) of the statutes is renumbered 14.58 (19).

AB1039,26 Section 26 . 16.401 (15) of the statutes is renumbered 14.58 (22).

AB1039,27 Section 27. 16.412 of the statutes is amended to read:

AB1039,11,24 16.412 Agency payments. At the request of any agency, the secretary, with the approval of the state treasurer, may authorize the processing of specified regular periodic payments through the use of money transfer techniques including, without limitation because of enumeration, direct deposit, electronic funds transfer, and automated clearinghouse procedures.

AB1039,28 Section 28. 16.415 (1) of the statutes is amended to read:

AB1039,12,12 16.415 (1) Neither the secretary nor any other fiscal officer of this state may draw, sign, or issue, or authorize the drawing, signing, or issuing of any warrant on any the state treasurer or other disbursing officer of the state to pay any compensation to any person in the classified service of the state unless an estimate, payroll, or account for such compensation, containing the names of every person to be paid, bears the certificate of the appointing authority that each person named in the estimate, payroll, or account has been appointed, employed, or subject to any other personnel transaction in accordance with, and that the pay for the person has been established in accordance with, the law, compensation plan, or applicable collective bargaining agreement, and applicable rules of the administrator of the division of personnel management in the department and the director of the bureau of merit recruitment and selection in the department then in effect.

AB1039,29 Section 29. 16.53 (5) of the statutes is amended to read:

AB1039,12,22 16.53 (5) Warrants; what to specify. The secretary shall draw a warrant on the state treasury treasurer payable to the claimant for the amount allowed by the secretary upon every claim audited under sub. (1), except as authorized in s. 16.52 (7), 20.920, or 20.929, specifying from what fund to be paid, the particular law that authorizes the claim to be paid out of the state treasury, and at the secretary's discretion the post-office address of the payee. No moneys may be paid out of the state treasury under this section The secretary may not credit the state treasurer for any sum of money paid out by the state treasurer otherwise than upon such warrants.

AB1039,30 Section 30. 16.53 (10) (a) of the statutes is amended to read:

AB1039,13,16 16.53 (10) (a) If an emergency arises which requires the department to draw vouchers for payments which will be in excess of available moneys in any state fund, the secretary, in consultation with the state treasurer, and after notifying the joint committee on finance under par. (b), may prorate and establish priority schedules for all payments within each fund, including those payments for which a specific payment date is provided by statute, except as otherwise provided in this paragraph. The secretary shall draw all vouchers according to the preference provided in this paragraph. All direct or indirect payments of principal or interest on state bonds and notes issued under subch. I of ch. 18 and payments due, if any, under an agreement or ancillary arrangement entered into under s. 18.06 (8) (a) relating to any public debt contracted under subchs. I and IV of ch. 18 have first priority. All direct or indirect payments of principal or interest on state notes issued under subch. III of ch. 18 have 2nd priority. No payment having a 1st or 2nd priority may be prorated or reduced under this subsection. All state employee payrolls have 3rd priority. The secretary shall draw all remaining vouchers according to a priority determined by the secretary. The secretary shall maintain records of all claims prorated under this subsection and shall provide written notice to the state treasurer when a potential cash flow emergency is anticipated.

AB1039,31 Section 31. 16.53 (10) (b) of the statutes is amended to read:

AB1039,13,25 16.53 (10) (b) Before exercising authority under par. (a) the secretary shall, after consultation with the state treasurer, notify the joint committee on finance as to the need for and the procedures under which proration or priority schedules under par. (a) shall occur. If the joint committee on finance has not, within 2 working days after the notification, scheduled a meeting to review the secretary's proposal, the secretary may proceed with the proposed action. If, within 2 working days after the notification, the committee schedules a meeting, the secretary may not proceed with the proposed action until after the meeting is held.

AB1039,32 Section 32. 16.64 of the statutes is renumbered 14.63, and 14.63 (2) (intro.) and (b), (3) (a), (c) and (d), (5) (b) (intro.), (6) (a) 5. and (b), (7) (a) (intro.), 4. and 5. and (b), (7m) (a) (intro.), (b) and (c), (9), (10) (a) and (b), (12) (title), (a) (intro.) and (b) (intro.) and (13), as renumbered, are amended to read:

AB1039,14,6 14.63 (2) Weighted average tuition; tuition unit cost. (intro.) Annually, the department state treasurer and the board jointly shall determine all of the following:

AB1039,14,13 (b) The price of a tuition unit, which shall be valid for a period determined jointly by the department state treasurer and the board. The price shall be sufficient to ensure the ability of the department state treasurer to meet its his or her obligations under this section. To the extent possible, the price shall be set so that the value of the tuition unit in the anticipated academic year of its use will be equal to 1 percent of the weighted average tuition for that academic year plus the costs of administering the program under this section attributable to the unit.

AB1039,14,16 (3) (a) An individual, trust, legal guardian, or entity described under 26 USC 529 (e) (1) (C) may enter into a contract with the department state treasurer for the sale of tuition units on behalf of a beneficiary.

AB1039,14,17 (c) The department state treasurer may charge a purchaser an enrollment fee.

AB1039,14,20 (d) The department state treasurer shall promulgate rules authorizing a person who has entered into a contract under this subsection to change the beneficiary named in the contract.

AB1039,14,23 (5) (b) (intro.) Upon request by the beneficiary, the department state treasurer shall pay to the institution or beneficiary, whichever is appropriate, in each semester of attendance the lesser of the following: