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ARIZONA HOUSE OF REPRESENTATIVESFifty-fifth Legislature First Regular Session |
Senate: ED DP 7-0-1-0 | 3rd Read 30-0-0-0 |
SB 1236: college savings program; name change
Sponsor: Senator Leach, LD 11
Committee on Education
Overview
Changes the name of the Family College Savings Program to AZ529, Arizona's Education Savings Plan.
History
Section 529 of the U.S. Internal Revenue Code allows states to establish tax-advantaged qualified tuition programs — also known as 529 plans — for individuals (26 U.S.C. § 529). These qualified tuition plans are sponsored by states, state agencies or educational institutions. Currently, the State of Arizona's 529 plan is named the Family College Savings Program (Program).
The Program is operated through the use of trust fund accounts established by private individuals at approved financial institutions; an account may be opened by any person who desires to invest in the Program to save and to pay for qualified education expenses. Any person may make contributions to an account after the account is opened. The State Treasurer prescribes the application and form for individuals who wish to open an account and statute outlines contribution requirements, beneficiary designations and loan and account procedures (A.R.S. § 15-1875).
The State Treasurer is responsible for administering the Program and must, amongst other prescribed duties: 1) implement rules and procedures for the Program; 2) negotiate with and select financial institution(s) to act as the manager of deposited monies; and 3) enter into tuition savings agreements with account owners (A.R.S. § 15-1873).
Provisions
1.
Changes the name of the Family College
Savings Program to AZ529, Arizona's Education Savings Plan. (Sec. 1)
2. Makes technical changes. (Sec. 4, 6, 7)
3. Makes conforming changes. (Sec. 2-11)
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SB 1236
Initials CH/NM Page 0 Education
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