AB1012: Bill Text

AB1012,4 Section 4. 224.50 (2) (a) of the statutes is amended to read:

AB1012,4,15 224.50 (2) (a) Except as provided in s. 224.51, and subject to sub. (3m), establish and administer a college savings program that allows an individual, trust, legal guardian, or entity described under 26 USC 529 (e) (1) (C) to establish a college savings account to cover tuition, fees, and the costs of room and board, books, supplies, and equipment required for the enrollment or attendance of a beneficiary at an eligible educational institution, as defined under 26 USC 529, and to cover tuition expenses in connection with enrollment or attendance at an elementary or secondary public, private, or religious school, as described in section 11032 of P.L. 115-97, related to qualified tuition programs under for the purposes set forth in 26 USC 529.

AB1012,5 Section 5. 224.50 (3) (bm) of the statutes is amended to read:

AB1012,4,24 224.50 (3) (bm) Beginning on August 1, 2015, no contribution may be made to an account if the contribution would cause the account balance of a beneficiary's account, or the combined balance of all accounts of a beneficiary, to exceed $425,000. This contribution limitation applies to all accounts that are established on and after that date, and to all accounts that are in existence on that date that have not yet reached the balance limit specified in this paragraph, subject to the annual increase described in sub. (2) (i), except that this paragraph does not apply to an account established under sub. (3m) (b).

AB1012,6 Section 6. 224.50 (3m) of the statutes is created to read:

AB1012,5,1 224.50 (3m) WisKids Savings Account Program. (a) In this subsection:

AB1012,5,5 1. “Parent” means a child's parent as identified or updated in the child's record of birth or a court's adoption order relating to the child or as subsequently updated in the records of the department or in the system of vital records, as defined in s. 69.01 (25) (a).

AB1012,5,7 2. “Program participant” means a child for whom the department has made a deposit under par. (c) and maintains an accounting under par. (d).

AB1012,5,10 3. “Qualified higher education expenses” has the meaning given in 26 USC 529 (e) (3) and includes the meaning under 26 USC 529 (c) (8) and (9) but excludes the meaning under 26 USC 529 (c) (7).

AB1012,5,12 (b) The department shall establish a master holding account, and may establish additional accounts, under this section.

AB1012,5,15 (c) 1. Subject to pars. (e) and (L) 2., whenever the department receives information from a birth record as provided in s. 69.20 (3) (b) 6., the department shall deposit at least $25 into an account established under par. (b) for the identified child.

AB1012,5,19 2. Subject to pars. (e) and (L) 2., whenever the department receives adoption information as provided in s. 69.20 (3) (b) 7., the department shall deposit at least $25 into an account established under par. (b) for the identified child if the department has not already made a deposit for the child under subd. 1.

AB1012,5,22 3. Deposits under this paragraph shall be made from the appropriations under s. 20.144 (3) (th) and (ti) and, as applicable, from the appropriation under s. 20.144 (1) (h).

AB1012,5,24 (d) For each account established under par. (b), the department shall maintain an accounting that includes the following information:

AB1012,6,2 1. The name of each child for whom the department made a deposit under par. (c).

AB1012,6,3 2. The name of each parent of the child under subd. 1.

AB1012,6,5 3. The principal and earnings in the account attributable to the child under subd. 1.

AB1012,6,8 (e) 1. Before depositing money into an account established under par. (b) on behalf of a child described in par. (c), the department shall provide notice in a record to each parent of the child. The notice shall contain all of the following information:

AB1012,6,10 a. A description of the program under this subsection, including the amount the department will deposit into the account for the child.

AB1012,6,12 b. That the parent may elect not to participate in the program under this subsection and forgo the department's deposit of money into the account.

AB1012,6,16 c. That the department will consider the child to participate in the program under this subsection and will deposit money into the account on behalf of the child unless a parent of the child notifies the department within 30 days of the date of the notice that the child opts out of the program.

AB1012,6,19 2. If a parent informs the department within 30 days of the date of the notice under subd. 1. that the child opts out of the program, the department may not include the child in the program under this subsection.

AB1012,6,23 3. If the department determines, based on available information, that neither the child, nor any parent of the child, was a resident of this state at the time of the birth or adoption, the department shall not include the child in the program under this subsection.

AB1012,7,2 (f) If the department receives adoption information regarding a child for whom the department has already deposited money under par. (c) 1., the department shall update its records to designate each adoptive parent, and to remove each parent identified in the birth records, as the child's parent for purposes of this subsection.

AB1012,7,5 (g) Upon request of a program participant, the department shall direct that a distribution from an account established under par. (b) be made on behalf of the program participant to a 3rd party if all of the following apply:

AB1012,7,7 1. The distribution is made to pay, in whole or in part, the program participant's qualified higher education expenses.

AB1012,7,9 2. The 3rd party has charged the program participant for these qualified higher education expenses.

AB1012,7,11 3. There are funds in the account attributable to the program participant available to pay the distribution under subd. 1.

AB1012,7,14 (h) 1. The department may remove a program participant from the program and make the funds that had been attributable to the program participant available for use by other program participants if any of the following applies:

AB1012,7,18 a. The department has not made any distribution under par. (g) for the program participant before the program participant reaches 28 years of age or has not distributed all funds attributable to the program participant within 5 years of the department's first distribution to the program participant.

AB1012,7,19 b. The program participant dies.

AB1012,7,22 c. The program participant, or a parent of the program participant, notifies the department in a record that the program participant is discontinuing participation in the program.

AB1012,8,2 (i) The department may accept contributions to the program from any person on behalf of program participants. These contributions to the program are subject to par. (k) and are not amounts paid into a college savings account for purposes of s. 71.05 (6) (b) 32. These contributions are irrevocable after the department deposits the contributed funds into an account established under par. (b).

AB1012,8,7 (j) As part of the department's administration of the program under this subsection, the department may collect data and conduct research related to the program's operation and results. Any person may share data with the department to assist the department in its efforts to conduct program research or secure program contributions under par. (i).

AB1012,8,11 (k) A program participant has no property interest in an account established under par. (b), and all money in an account under par. (b) remains solely the property of the state, until the money is distributed for the program participant as provided in par. (g).

AB1012,8,18 (L) 1. No later than December 31, 2024, the department shall determine the minimum balance of the college savings program trust fund that must be maintained to meet current and reasonably anticipated future obligations under this section. The board shall review the determination at least once every 2 years and make any necessary modifications. The board shall engage, and may rely on the opinions of, one or more actuaries or other professionals retained under sub. (4) to assist in meeting the requirements of this subdivision.

AB1012,9,2 2. If the balance of the college savings program trust fund falls below the amount established under subd. 1., the department shall suspend making deposits under par. (d) until the balance is at least the amount established under subd. 1. When the department resumes making deposits under par. (d), it shall first make deposits on behalf of children for whom deposits would have been made, in the order in which the deposits would have been made, had deposits not been suspended, and shall thereafter make deposits based on birth or adoption information received after deposits resumed.

AB1012,9,3 (End)