Bill Text: PA HB540 | 2009-2010 | Regular Session | Introduced

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Bill Title: Further providing for general provisions governing both tuition account programs.

Spectrum: Moderate Partisan Bill (Republican 67-16)

Status: (Introduced - Dead) 2009-03-04 - Referred to FINANCE [HB540 Detail]

Download: Pennsylvania-2009-HB540-Introduced.html

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PRINTER'S NO. 785
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 540 Session of2009
INTRODUCED BY TURZAI, ADOLPH, BARRAR, BEAR, BEYER, BOBACK, BOYD, BROOKS, CALTAGIRONE, CAUSER, CLYMER, CREIGHTON, CUTLER, DALLY, DENLINGER, ELLIS, EVERETT, FAIRCHILD, FLECK, GABLER, GEIST, GEORGE, GILLESPIE, GINGRICH, GODSHALL, GRELL, GROVE, HARHART, HARPER, HARRIS, HELM, HENNESSEY, HESS, HICKERNELL, HORNAMAN, HUTCHINSON, KAUFFMAN, M. KELLER, KILLION, KORTZ, KOTIK, LONGIETTI, MAJOR, MANN, MELIO, MENSCH, METCALFE, MICOZZIE, MILLARD, MILLER, MOUL, MURT, MUSTIO, OBERLANDER, O'NEILL, PALLONE, PASHINSKI, PAYNE, PETRI, PHILLIPS, PICKETT, PYLE, QUIGLEY, QUINN, RAPP, REED, REICHLEY, ROAE, SABATINA, SAINATO, SAYLOR, SCAVELLO, SIPTROTH, SONNEY, STABACK, STERN, STEVENSON, SWANGER, THOMAS, VULAKOVICH, WATSON, YOUNGBLOOD AND YUDICHAK, MARCH 4, 2009
REFERRED TO COMMITTEE ON FINANCE, MARCH 4, 2009
AN ACT
Amending the act of April 3, 1992 (P.L.28, No.11), entitled, as
amended, "An act providing for the establishment of two
programs for postsecondary educational savings, a guaranteed
savings program and an investment program; establishing the
Tuition Account Programs Bureau within the Treasury
Department and providing duties for the Treasury Department;
establishing tuition account funds; providing for Tuition
Account Program Contracts; providing for the establishment of
scholarship programs; and further providing for duties of the
Pennsylvania Higher Education Assistance Agency," further
providing for general provisions governing both tuition
account programs.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 309.2 of the act of April 3, 1992 (P.L.
28, No.11), known as the Tuition Account Programs and College
Savings Bond Act, added June 22, 2000 (P.L.418, No.58), is
amended to read:
Section 309.2. General provisions governing both tuition
account programs.
(a) Levy, execution and security for loans.--A tuition
account, any state-qualified tuition program or any legal
interest therein shall not be subject to attachment, levy or
execution by any creditor of [an] any account owner or
beneficiary and shall not be used as security for a loan.
(b) Period of participation.--Notwithstanding any of the
provisions of this chapter, the following shall apply:
(1) Except as provided in paragraph (2), a minimum
period of one year must elapse between the time a
contribution is made pursuant to a Tuition Account Program
Contract and the time that contribution and any increase in
its value may be used for payment of qualified higher
education expenses pursuant to section 309 or 309.1.
(2) The board may prescribe an alternative minimum
period of time which must elapse between a contribution and
its use for payment of qualified higher education expenses.
(c) Student aid.--Any amounts contributed pursuant to a
Tuition Account Program Contract, any state-qualified tuition
program and any increase in the value thereof shall not be used
in calculating personal asset contributions for determining
eligibility and need for student loan programs, student grant
programs or other student aid programs administered by any
agency of the Commonwealth, except as otherwise may be provided
by Federal law.
(d) Excess contributions.--The department shall institute
adequate safeguards to prevent contributions to an account or
multiple accounts that are in excess of those necessary to
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provide for the qualified higher education expenses of the
beneficiary of that account or accounts, as specified in section
529 of the Internal Revenue Code of 1986 (Public Law 99-514, 26
U.S.C. § 529).
(e) Cash contributions.--A contribution made pursuant to a
Tuition Account Program Contract may only be made in cash, which
may at the department's discretion include checks, money orders,
credit cards or other similar methods.
(f) Transfers between programs.--The department, pursuant to
a Tuition Account Program Contract, may specify the terms and
conditions under which transfers of contributions and any
increased value thereof may be made from one account to another
by an account owner who has entered into a Tuition Account
Guaranteed Savings Program Contract and a Tuition Account
Investment Program Contract. Nothing in this subsection shall be
construed to require the department to allow such transfers.
Section 2. This act shall take effect in 60 days.
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