ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

Senate: ED DP 8-0-0-0 | 3rd Read 28-0-2-0

House: ED DP 10-0-0-0

SB1160: AZ529 plan; advisory committee; membership

Sponsor: Senator Leach, LD 11

Caucus & COW

Overview

Alters the membership of the AZ529, Arizona's Education Savings Plan (AZ529 Plan) Advisory Committee.

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. Laws 2021, Chapter 188 changed the name of Arizona's plan from the Family College Savings Program to the AZ529 Plan.

The AZ529 Plan 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 AZ529 Plan to save and to pay for qualified education expenses. Any person may make contributions to an account after the account is opened (A.R.S. Title 15, Chapter 14, Article 7).

The Treasurer is responsible for administering the AZ529 Plan and must, amongst other prescribed duties: 1) implement rules and procedures for the AZ529 Plan; 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).

The AZ529 Advisory Committee is appointed by the Treasurer and is currently composed of: 1) the Treasurer (or designee); 2) two members who represent community college districts; 3) one member who represents an Arizona public university; 4) two members who represent an accredited private educational institution; 5) one member who is a teacher; 6) one member who represents a federally-recognized Indian tribe in Arizona; 7) one member who represents a U.S. Department of Labor-approved apprenticeship program; and 8) two public members who are Arizona residents. The AZ529 Advisory Committee is tasked with assisting the Treasurer in raising awareness of the AZ529 Plan, with emphasis on increasing access among economically disadvantaged, minority and underrepresented student populations (A.R.S. § 41-179).

Provisions

1. Increases the number of public members on the AZ529 Plan Advisory Committee from two to four and requires at least one of these members to represent a 501(c)(3) nonprofit organization based in Arizona. (Sec. 1)

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5. SB 1160

6. Initials CH/MR Page 0 Caucus & COW

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