14.63(3)(a)4.c.
c. If the purchaser is a legal guardian that is not an individual, the beneficiary is a child who is under the legal guardianship of the legal guardian.
14.63(3)(a)4.d.
d. If the purchaser is a trust, the beneficiary is the beneficiary of the trust.
14.63(3)(b)
(b) The contract shall specify the anticipated academic year of the beneficiary's initial enrollment in an institution of higher education.
14.63(3)(c)
(c) The state treasurer may charge a purchaser an enrollment fee.
14.63(3)(d)
(d) The 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.
14.63(4)
(4) Number of tuition units purchased. A person who enters into a contract under
sub. (3) may purchase tuition units at any time and in any number, except that the total number of tuition units purchased on behalf of a single beneficiary may not exceed the number necessary to cover tuition, fees and the costs of room and board, books, supplies and equipment required for enrollment or attendance of the beneficiary at an institution of higher education.
14.63(5)(a)(a) Except as provided in
sub. (7m), if an individual named as beneficiary in a contract under
sub. (3) attends an institution of higher education in the United States, each tuition unit purchased on his or her behalf entitles that beneficiary to apply toward the payment of tuition, fees and the costs of room and board, books, supplies and equipment required for enrollment or attendance at the institution an amount equal to 1% of the anticipated weighted average tuition of bachelor's degree-granting institutions within the University of Wisconsin System for the year of attendance, as estimated under
sub. (2) in the year in which the tuition unit was purchased.
14.63(5)(b)
(b) Upon request by the beneficiary, the state treasurer shall pay to the institution or beneficiary, whichever is appropriate, in each semester of attendance the lesser of the following:
14.63(5)(b)1.
1. An amount equal to the value of each tuition unit, as determined under
par. (a), multiplied by the number of tuition units purchased on behalf of the beneficiary and not used.
14.63(5)(b)2.
2. An amount equal to the sum of the institution's tuition, fees and the costs described in
par. (a) for that semester.
14.63(6)(a)(a) A contract under
sub. (3) may be terminated by the person entering into the contract if any of the following occurs:
14.63(6)(a)1.
1. The beneficiary dies or is permanently disabled.
14.63(6)(a)2.
2. The beneficiary graduates from high school but is unable to gain admission to an institution of higher education after a good faith effort.
14.63(6)(a)3.
3. The beneficiary attended an institution of higher education but involuntarily failed to complete the program in which he or she was enrolled.
14.63(6)(a)4.
4. The beneficiary is at least 18 years old and one of the following applies:
14.63(6)(a)4.b.
b. The beneficiary has decided not to attend an institution of higher education.
14.63(6)(a)4.c.
c. The beneficiary attended an institution of higher education but voluntarily withdrew without completing the program in which he or she was enrolled.
14.63(6)(a)5.
5. Other circumstances determined by the state treasurer to be grounds for termination.
14.63(6)(b)
(b) The state treasurer shall terminate a contract under
sub. (3) if any of the tuition units purchased under the contract remain unused 10 years after the anticipated academic year of the beneficiary's initial enrollment in an institution of higher education, as specified in the contract.
14.63(7)(a)(a) Except as provided in
sub. (7m), the state treasurer shall do all of the following:
14.63(7)(a)1.
1. When a beneficiary completes the program in which he or she is enrolled, if the beneficiary has not used all of the tuition units purchased on his or her behalf, refund to the person who entered into the contract an amount equal to 1% of the anticipated weighted average tuition in the academic year in which the beneficiary completed the program, as estimated under
sub. (2) in the year in which the tuition units were purchased, multiplied by the number of tuition units purchased by the person and not used by the beneficiary.
14.63(7)(a)2.
2. If a contract is terminated under
sub. (6) (a) 1.,
2. or
3., refund to the person who entered into the contract an amount equal to 1% of the anticipated weighted average tuition in the academic year in which the contract is terminated, as estimated under
sub. (2) in the year in which the tuition units were purchased, multiplied by the number of tuition units purchased by the person and not used by the beneficiary.
14.63(7)(a)3.
3. If a contract is terminated under
sub. (6) (a) 4. or
(b), refund to the person who entered into the contract an amount equal to 99% of the amount determined under
subd. 2.
14.63(7)(a)4.
4. If a contract is terminated under
sub. (6) (a) 5., refund to the person who entered into the contract the amount under
subd. 2. or under
subd. 3., as determined by the state treasurer.
14.63(7)(a)5.
5. If the beneficiary is awarded a scholarship, tuition waiver or similar subsidy that cannot be converted into cash by the beneficiary, refund to the person who entered into the contract, upon the person's request, an amount equal to the value of the tuition units that are not needed because of the scholarship, waiver or similar subsidy and that would otherwise have been paid by the state treasurer on behalf of the beneficiary during the semester in which the beneficiary is enrolled.
14.63(7)(b)
(b) The state treasurer shall determine the method and schedule for the payment of refunds under this subsection.
14.63(7m)
(7m) Tuition unit value adjustment; refund adjustment. 14.63(7m)(a)(a) The state treasurer may adjust the value of a tuition unit based on the actual earnings attributable to the tuition unit less the costs of administering the program under this section that are attributable to the tuition unit if any of the following applies:
14.63(7m)(a)1.
1. The individual named as the beneficiary in a contract under
sub. (3) wishes to use the tuition unit for the payment of tuition in a year other than the anticipated academic year of attendance, as specified in the contract.
14.63(7m)(a)2.
2. The individual named as the beneficiary in a contract under
sub. (3), or the person who entered into the contract, wishes to receive a refund under
sub. (7) in a year other than the anticipated academic year of the beneficiary's attendance, as specified in the contract.
14.63(7m)(b)
(b) The state treasurer may not increase the value of a tuition unit under
par. (a) to an amount that exceeds the value of a tuition unit that was purchased at a similar time, held for a similar period and used or refunded in the anticipated academic year of the beneficiary's attendance, as specified in the contract.
14.63(7m)(c)
(c) The state treasurer may promulgate rules imposing or increasing penalties for refunds under
sub. (7) (a) if the state treasurer determines that such rules are necessary to maintain the status of the program under this section as a qualified state tuition program under section
529 of the Internal Revenue Code, as defined in
s. 71.01 (6).
14.63(8)
(8) Exemption from garnishment, attachment and execution. Moneys deposited in the tuition trust fund and a beneficiary's right to the payment of tuition, fees and the costs described in
sub. (5) (a) under this section are not subject to garnishment, attachment, execution or any other process of law.
Effective date note
NOTE: Sub. (8) is shown as amended eff. 2-1-01 by
1999 Wis. Act 44. Prior to 2-1-01 it reads:
Effective date text
(8) Exemption from garnishment, attachment and execution. Moneys deposited in the tuition trust fund and a beneficiary's right to the payment of tuition and mandatory student fees under this section are not subject to garnishment, attachment, execution or any other process of law.
14.63(9)
(9) Contract with actuary. The state treasurer shall contract with an actuary or actuarial firm to evaluate annually whether the assets in the tuition trust fund are sufficient to meet the obligations of the state treasurer under this section and to advise the state treasurer on setting the price of a tuition unit under
sub. (2) (b).
14.63(10)(a)(a) Annually, the state treasurer shall submit a report to the governor, and to the appropriate standing committees of the legislature under
s. 13.172 (3), on the program under this section. The report shall include any recommendations for changes to the program that the state treasurer determines are necessary to ensure the sufficiency of the tuition trust fund to meet the state treasurer's obligations under this section.
14.63(10)(b)
(b) The state treasurer shall submit a quarterly report to the state investment board projecting the future cash flow needs of the tuition trust fund. The state investment board shall invest moneys held in the tuition trust fund in investments with maturities and liquidity that are appropriate for the needs of the fund as reported by the state treasurer in his or her quarterly reports. All income derived from such investments shall be credited to the fund.
14.63(10m)
(10m) Repayment to general fund. The secretary of administration shall transfer from the tuition trust fund to the general fund an amount equal to the amount encumbered from the appropriations under s.
20.505 (9) (a), 1995 stats., and
s. 20.585 (2) (a) when the secretary of administration determines that funds in the tuition trust fund are sufficient to make the transfer. The secretary of administration may make the transfer in instalments.
14.63(11)(a)(a) Nothing in this section guarantees an individual's admission to, retention by or graduation from any institution of higher education.
14.63(11)(b)
(b) The requirements to pay tuition, fees and the costs of room and board, books, supplies and equipment under
sub. (5) and to make refunds under
sub. (7) are subject to the availability of sufficient assets in the tuition trust fund.
14.63(11m)
(11m) Financial aid calculations. The value of tuition units shall not be included in the calculation of a beneficiary's eligibility for state financial aid for higher education if the beneficiary notifies the higher educational aids board and the institution of higher education that the beneficiary is planning to attend that he or she is a beneficiary of a contract under this section and the contract owner agrees to release to the higher educational aids board and the institution of higher education information necessary for the calculation under this subsection.
14.63(12)
(12) Additional duties and powers of the state treasurer. 14.63(12)(a)(a) The state treasurer shall do all of the following:
14.63(12)(a)1.
1. Annually publish a list of the institutions of higher education located in this state and the number of tuition units necessary to pay for one year of full-time attendance as a resident undergraduate at each institution.
14.63(12)(a)3.
3. Promulgate rules to implement and administer this section.
14.63(12)(b)
(b) The state treasurer may do any of the following:
14.63(12)(b)1.
1. Contract with any person for the management and operation of the program or any part of the program under this section.
14.63(12)(b)2.
2. Keep personal and financial information pertaining to a purchaser of tuition units or a beneficiary of tuition units closed to the public.
14.63(13)
(13) Program termination. If the state treasurer determines that the program under this section is financially infeasible, the state treasurer shall discontinue entering into contracts under
sub. (3) and discontinue selling tuition units under
sub. (4).
14.63 History
History: 1995 a. 403;
1997 a. 27,
158;
1999 a. 9 ss.
52 to
62; Stats. 1999 s. 14.63;
1999 a. 44.
14.64
14.64
College savings program. 14.64(1)
(1) D
efinitions. In this section:
14.64(1)(a)
(a) "Account owner" means an individual who establishes a college savings account under this section.
14.64(1)(b)
(b) "Board" means the college savings program board.
Effective date note
NOTE: Section 14.64 (title) and (1) are created eff. 2-1-01 by
1999 Wis. Act 44.
14.64(2)
(2) Duties of the board. The board shall do all of the following:
14.64(2)(a)
(a) Except as provided in
s. 16.25 [
s. 16.255], 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.
14.64 Note
NOTE: The bracketed language indicates the correct cross-reference. Corrective legislation is pending.
14.64(2)(b)
(b) Ensure that the college savings program meets the requirements of a qualified state tuition plan under
26 USC 529.
14.64(2)(c)
(c) Invest the contributions to college savings accounts and pay distributions to beneficiaries and eligible educational institutions.
14.64(2)(d)
(d) Provide to each account owner, and to persons who are interested in establishing a college savings account, information about current and estimated future higher education costs, levels of participation in the college savings program that will help achieve educational funding objectives and availability of and access to financial aid.
14.64(2)(e)
(e) Promulgate rules to implement and administer this section, including rules that determine whether a withdrawal from a college savings account is a qualified or nonqualified withdrawal, as defined under
26 USC 529, and that impose more than a de minimis penalty, as defined under
26 USC 529, for nonqualified withdrawals.
14.64(2)(f)
(f) Seek rulings and guidance from the U.S. department of the treasury, the internal revenue service and the securities and exchange commission to ensure the proper implementation and administration of the college savings program.
14.64(2)(g)
(g) Ensure that if the department of administration changes vendors, the balances of college savings accounts are promptly transferred into investment instruments as similar to the original investment instruments as possible.
14.64(2)(h)
(h) Keep personal and financial information pertaining to an account owner or a beneficiary closed to the public, except that the board may release to the appropriate state agency information necessary in determining a beneficiary's eligibility for state financial aid for higher education.
14.64(3)
(3) Account owners; beneficiaries; contributions; termination of savings accounts. 14.64(3)(a)(a) An account owner may do all of the following:
14.64(3)(a)2.
2. Select a beneficiary of a college savings account.
14.64(3)(a)3.
3. Change the beneficiary of a college savings account to a family member, as defined under
26 USC 529, of the previous beneficiary.
14.64(3)(a)4.
4. Transfer all or a portion of a college savings account to another college savings account whose beneficiary is a member of the family.
14.64(3)(a)5.
5. Designate a person other than the beneficiary as a person to whom funds may be paid from a college savings account.
14.64(3)(a)6.
6. Receive distributions from a college savings account if no other person is designated.
14.64(3)(b)
(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.
14.64(3)(c)
(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.
14.64(3)(d)
(d) An account owner under this section may terminate his or her college savings account if any of the following occurs:
14.64(3)(d)1.
1. The beneficiary dies or is permanently disabled.
14.64(3)(d)2.
2. The beneficiary graduates from high school but is unable to gain admission to an institution of higher education after a good faith effort.
14.64(3)(d)3.
3. The beneficiary attended an institution of higher education but involuntarily failed to complete the program in which he or she was enrolled.
14.64(3)(d)4.
4. The beneficiary is at least 18 years old and one of the following applies:
