ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

Senate: ED DP 7-0-0-0 | 3rd Read 28-0-2-0

House: ED DP 7-0-0-3 | 3rd Read 57-0-3-0

SB 1454: AZ529 savings plan; committee; membership

Sponsor: Senator Bennett, LD 1

Transmitted to the Governor

Overview

Modifies 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. These qualified tuition plans are sponsored by states, state agencies or educational institutions (26 U.S.C. § 529). The AZ529 Plan is administered by the Treasurer and operates through 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 pay for qualified education expenses (A.R.S. Title 15, Chapter 14, Article 7).

The AZ529 Plan Advisory Committee is tasked with assisting the Treasurer in raising awareness of the AZ529 Plan, with emphasis on increasing access to the AZ529 Plan among economically disadvantaged, minority and underrepresented student populations. Members are appointed by the Treasurer and include: the Treasurer (or their designee); two members who represent community college districts in counties meeting prescribed population requirements; one member who represents an Arizona public university; two members who represent accredited private educational institutions; one member who represents an accredited private school or organization offering K-12 instruction; one member who is a teacher that provides classroom instruction; one member who represents a federally-recognized Indian tribe in Arizona; one member who represents a U.S. Department of Labor-approved apprenticeship program; and three public members who are Arizona residents (one of whom must represent an Arizona-based 501(c)(3) nonprofit organization) (A.R.S. § 41-179).

Provisions

1. Authorizes AZ529 Plan Advisory Committee members to be represented by a designee. (Sec. 1)

2. Requires at least one of the public members of the AZ529 Plan Advisory Committee to have financial planning experience. (Sec. 1)

3. Asserts that all AZ529 Plan Advisory Committee members serving on the general effective date may continue to serve until the expiration of their normal terms. (Sec. 2)

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7. SB 1454

8. Initials CH/RP Page 0 Transmitted

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