Bill Text: MI SB0546 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Individual income tax; other; enhanced Michigan education savings accounts; allow parents to open. Amends 2000 PA 161 (MCL 390.1471 - 390.1486) by adding secs. 23, 24 & 25. TIE BAR WITH: SB 0544'17
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2018-02-08 - Referred To Second Reading [SB0546 Detail]
Download: Michigan-2017-SB0546-Engrossed.html
SB-0546, As Passed Senate, December 5, 2017
SUBSTITUTE FOR
SENATE BILL NO. 546
A bill to amend 2000 PA 161, entitled
"Michigan education savings program act,"
(MCL 390.1471 to 390.1486) by adding sections 23, 24, and 25.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 23. (1) Beginning with the school year that starts 1 year
after the effective date of this part, parents may open an account
for each dependent who is a student to allow for the enrollment in
and payment for eligible services offered by a public school or any
other organization for that student and to pay for postsecondary
education expenses. A parent shall open only 1 account for each
dependent.
(2) To open an account, the parent shall enter into a program
agreement with the program. The program agreement shall be in the
form prescribed by a program manager and approved by the treasurer
and contain all of the following:
(a) The name, address, and social security number of the
parent.
(b) The name, address, and social security number of the
student.
(c) Any other information that the treasurer or program
manager considers necessary for the enrollment of the student and
related to the eligible services.
(3) Any individual or entity may make contributions to an
account. Any contributions to an account must be made in cash, by
check, by credit card, or by any similar method as approved by the
state treasurer but shall not be property.
(4) An account owner is responsible for the payment of
eligible services and any postsecondary education expenses.
Distributions from an account to pay for eligible services shall be
paid directly to the public school or the organization in which the
eligible services are to be provided. Distributions from an account
to pay for postsecondary education expenses may be paid to the
account owner or to the institution providing the postsecondary
education. Payments may be made electronically.
(5) Each savings plan under the program shall provide separate
accounting for each student.
(6) The department or the department of education shall not
impose any additional requirements on an account owner other than
those established under the program agreement and this part.
Sec. 24. (1) Upon graduation from a public school, an account
owner may transfer funds back to the enhanced Michigan education
savings program fund or utilize the remaining funds to pay for
postsecondary education expenses.
(2) Upon the death of the student, the account shall be closed
and that portion of the money in the account that was deposited
pursuant to section 23 shall be transferred back into the enhanced
Michigan education savings program fund.
Sec. 25. (1) Except as otherwise provided in this section, an
account owner shall not direct the investment of any contributions
to an account or the earnings on an account.
(2) An account owner may select among different investment
strategies designed by a program manager to the extent allowed
under this part.
(3) The program may allow board members or employees of the
program, or the board members or employees of a contractor hired by
the program to perform administrative services, to make
contributions to an account.
(4) An interest in an account shall not be used by an account
owner as security for a loan. Any pledge of an interest in an
account has no force or effect.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 544 of the 99th Legislature is enacted into
law.
