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Senate File 457

Partial Bill History

Bill Text

PAG LIN
  1  1                                           SENATE FILE 457
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO THE IOWA EDUCATIONAL SAVINGS PLAN TRUST, AND
  1  5    INCLUDING AN EFFECTIVE DATE AND RETROACTIVE APPLICABILITY
  1  6    PROVISION.  
  1  7 
  1  8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  9 
  1 10    Section 1.  Section 12D.2, unnumbered paragraph 2, Code
  1 11 1999, is amended by striking the unnumbered paragraph.
  1 12    Sec. 2.  Section 12D.3, subsection 1, paragraph a, Code
  1 13 1999, is amended to read as follows:
  1 14    a.  Each participation agreement shall may require a
  1 15 participant to agree to invest a specific amount of money in
  1 16 the trust for a specific period of time for the benefit of a
  1 17 specific beneficiary.  A participant shall not be required to
  1 18 make an annual contribution on behalf of a beneficiary.  The
  1 19 minimum contribution per beneficiary per year, in a year in
  1 20 which a participant is making a contribution, shall be three
  1 21 hundred fifty dollars, and the maximum contribution shall not
  1 22 exceed two thousand dollars per beneficiary per year adjusted
  1 23 annually to reflect increases in the consumer price index.
  1 24 However, the treasurer of state may set a maximum, as
  1 25 necessary, to maintain compliance with section 529 of the
  1 26 Internal Revenue Code.
  1 27    Sec. 3.  Section 12D.3, subsection 2, Code 1999, is amended
  1 28 to read as follows:
  1 29    2.  Beneficiaries designated in participation agreements
  1 30 may be designated from date of birth up to, but not including,
  1 31 their seventeenth eighteenth birthday.  A substitute
  1 32 beneficiary may be older than age eighteen provided that the
  1 33 substitute beneficiary is not older than the original
  1 34 beneficiary when the substitution is made.
  1 35    Sec. 4.  Section 12D.3, subsection 3, Code 1999, is amended
  2  1 by striking the subsection and inserting in lieu thereof the
  2  2 following:
  2  3    3.  A participant's account balance shall be refunded to
  2  4 the participant, less endowment fund earnings, and less a
  2  5 refund penalty levied by the trust against account balance
  2  6 earnings, if any, in the event an account balance remains in
  2  7 the account for a thirty-day period following the
  2  8 beneficiary's thirtieth birthday.
  2  9    Sec. 5.  NEW SECTION.  12D.4A  ADMINISTRATIVE FUND –
  2 10 APPROPRIATION.
  2 11    For the fiscal year beginning July 1, 1998, and ending June
  2 12 30, 1999, and for the fiscal year beginning July 1, 1999, and
  2 13 ending June 30, 2000, an amount, not to exceed four hundred
  2 14 thousand dollars annually, shall be transferred from the
  2 15 unclaimed property trust fund established in section 556.18 to
  2 16 the administrative fund for the payment of costs of
  2 17 administration and operation of the trust.  For the fiscal
  2 18 year beginning July 1, 2000, and succeeding fiscal years,
  2 19 there shall be appropriated to the administrative fund by the
  2 20 general assembly from the general fund of the state an amount
  2 21 sufficient for the payment of costs of administration and
  2 22 operation of the trust.
  2 23    Sec. 6.  Section 12D.5, subsection 1, Code 1999, is amended
  2 24 by striking the subsection and inserting in lieu thereof the
  2 25 following:
  2 26    1.  A participant may cancel a participation agreement at
  2 27 will.  Upon cancellation of a participation agreement, a
  2 28 participant shall be entitled to the return of the
  2 29 participant's account balance, less endowment fund investment
  2 30 earnings, and less a refund penalty levied by the trust
  2 31 against the participant's account balance earnings, if any.
  2 32 The penalty shall be deposited into the administrative fund.
  2 33    Sec. 7.  Section 12D.5, subsection 2, paragraph b, Code
  2 34 1999, is amended to read as follows:
  2 35    b.  In the event of cancellation of a participation
  3  1 agreement for any of the causes listed in paragraph "a", the
  3  2 participant shall be entitled to receive the principal amount
  3  3 of all payments made by the participant under the
  3  4 participation agreement plus the actual program fund
  3  5 investment income earned on the payments, but not the
  3  6 participant's account balance, less endowment fund investment
  3  7 income.
  3  8    Sec. 8.  Section 12D.6, subsection 2, unnumbered paragraph
  3  9 1, Code 1999, is amended to read as follows:
  3 10    In the event the program is terminated prior to payment of
  3 11 higher education costs for the beneficiary, the participant is
  3 12 entitled to a full refund of all payments made under the
  3 13 participation agreement and all investment income credited on
  3 14 all the payments the participant's account balance.
  3 15    Sec. 9.  Section 12D.9, subsection 1, paragraph f, Code
  3 16 1999, is amended to read as follows:
  3 17    f.  Pursuant to section 12D.5, subsection 1, paragraphs "a"
  3 18 and "b", penalties are provided on refunds of earnings which
  3 19 are not used for qualified higher education expenses of the
  3 20 beneficiary, made on account of the death or disability of the
  3 21 designated beneficiary, or made due to scholarship, allowance,
  3 22 or payment receipt as provided in section 529(b)(3) of the
  3 23 Internal Revenue Code.
  3 24    Sec. 10.  EFFECTIVE DATE AND RETROACTIVE APPLICABILITY.
  3 25 This Act, being deemed of immediate importance, takes effect
  3 26 upon enactment and is retroactively applicable to July 1,
  3 27 1998.  
  3 28 
  3 29 
  3 30                                                             
  3 31                               MARY E. KRAMER
  3 32                               President of the Senate
  3 33 
  3 34 
  3 35                                                             
  4  1                               BRENT SIEGRIST
  4  2                               Speaker of the House
  4  3 
  4  4    I hereby certify that this bill originated in the Senate and
  4  5 is known as Senate File 457, Seventy-eighth General Assembly.
  4  6 
  4  7 
  4  8                                                             
  4  9                               MICHAEL E. MARSHALL
  4 10                               Secretary of the Senate
  4 11 Approved                , 1999
  4 12 
  4 13 
  4 14                               
  4 15 THOMAS J. VILSACK
  4 16 Governor
     
Text: SF00456                           Text: SF00458
Text: SF00400 - SF00499                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

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