Text: S03108                            Text: S03110
Text: S03100 - S03199                   Text: S Index
Bills and Amendments: General Index     Bill History: General Index

Senate Amendment 3109

Amendment Text

PAG LIN
  1  1    Amend Senate File 384 as follows:
  1  2    #1.  Page 1, by inserting before line 1 the
  1  3 following:
  1  4    "Section 1.  Section 12D.1, unnumbered paragraph 1,
  1  5 Code 2003, is amended to read as follows:
  1  6    The general assembly finds that the general welfare
  1  7 and well-being of the state are directly related to
  1  8 educational levels and skills of the citizens of the
  1  9 state, and that a vital and valid public purpose is
  1 10 served by the creation and implementation of programs
  1 11 which encourage and make possible the attainment of
  1 12 higher education by the greatest number of citizens of
  1 13 the state.  The state has limited resources to provide
  1 14 additional programs for higher education funding and
  1 15 the continued operation and maintenance of the state's
  1 16 public institutions of higher education and the
  1 17 general welfare of the citizens of the state will be
  1 18 enhanced by establishing a program which allows
  1 19 citizens of the state to invest money in a public
  1 20 trust for future application to the payment of higher
  1 21 education costs.  The creation of the means of
  1 22 encouragement for citizens to invest in such a program
  1 23 represents the carrying out of a vital and valid
  1 24 public purpose.  In order to make available to the
  1 25 citizens of the state an opportunity to fund future
  1 26 higher education needs, it is necessary that a public
  1 27 trust be established in which moneys may be invested
  1 28 for future educational use.  It is also necessary to
  1 29 establish an endowment fund which may be funded with
  1 30 public funds, among other sources, the income from
  1 31 which will be made available to participants in the
  1 32 trust to enhance their savings invested for the
  1 33 payment of future higher education costs.
  1 34    Sec.    .  Section 12D.1, subsections 5 and 13,
  1 35 Code 2003, are amended by striking the subsections.
  1 36    Sec.    .  Section 12D.2, subsections 4, 8, and 12,
  1 37 Code 2003, are amended to read as follows:
  1 38    4.  Accept any grants, gifts, legislative
  1 39 appropriations, and other moneys from the state, any
  1 40 unit of federal, state, or local government, or any
  1 41 other person, firm, partnership, or corporation which
  1 42 the treasurer of state shall deposit into the
  1 43 administrative fund, the endowment fund, or the
  1 44 program fund.
  1 45    8.  Solicit and accept for the benefit of the
  1 46 endowment fund gifts, grants, and other moneys,
  1 47 including legislative appropriations and grants from
  1 48 any federal, state, or local governmental agency.
  1 49    12.  Invest moneys from the endowment fund and the
  1 50 program fund in any investments which are determined
  2  1 by the treasurer of state to be appropriate.
  2  2    Sec.    .  Section 12D.3, subsections 2 and 3, Code
  2  3 2003, are amended to read as follows:
  2  4    2.  Beneficiaries designated in participation
  2  5 agreements may be designated from date of birth up to,
  2  6 but not including, their eighteenth birthday.  A
  2  7 substitute beneficiary may be older than age eighteen
  2  8 provided that the substitute beneficiary is not shall
  2  9 not be older than the original beneficiary.
  2 10    3.  A participant's account balance shall be
  2 11 refunded to the participant, less endowment fund
  2 12 earnings, and less a refund penalty levied by the
  2 13 trust against account balance earnings, if any, in the
  2 14 event an account balance remains in the account for a
  2 15 thirty-day period following the beneficiary's
  2 16 thirtieth birthday.
  2 17    Sec.    .  Section 12D.4, Code 2003, is amended by
  2 18 striking the section and inserting in lieu thereof the
  2 19 following:
  2 20    12D.4  PROGRAM AND ADMINISTRATIVE FUNDS –
  2 21 INVESTMENT AND PAYMENTS.
  2 22    1.  The treasurer of state shall segregate moneys
  2 23 received by the trust into two funds:  the program
  2 24 fund and the administrative fund.
  2 25    2.  All moneys paid by participants in connection
  2 26 with participation agreements shall be deposited as
  2 27 received into separate accounts within the program
  2 28 fund.
  2 29    3.  Contributions to the trust made by participants
  2 30 or received in the form of gifts, grants, or donations
  2 31 may only be made in the form of cash.
  2 32    4.  A participant or beneficiary shall not provide
  2 33 investment direction regarding program contributions
  2 34 or earnings held by the trust.
  2 35    5.  Moneys accrued by participants in the program
  2 36 fund of the trust may be used for payments to any
  2 37 institution of higher education.
  2 38    Sec.    .  Section 12D.5, Code 2003, is amended by
  2 39 striking the section and inserting in lieu thereof the
  2 40 following:
  2 41    12D.5  CANCELLATION OF AGREEMENTS.
  2 42    A participant may cancel a participation agreement
  2 43 at will.  Upon cancellation of a participation
  2 44 agreement, a participant shall be entitled to the
  2 45 return of the participant's account balance.
  2 46    Sec.    .  Section 12D.6, subsections 1 and 2, Code
  2 47 2003, are amended to read as follows:
  2 48    1.  a.  A participant retains ownership of all
  2 49 payments made under a participation agreement up to
  2 50 the date of utilization for payment of higher
  3  1 education costs for distribution to the beneficiary.
  3  2    b.  All income derived from the investment of the
  3  3 payments made by the participant shall be considered
  3  4 to be held in trust for the benefit of the
  3  5 beneficiary.
  3  6    2.  In the event the program is terminated prior to
  3  7 payment of higher education costs for distribution to
  3  8 the beneficiary, the participant is entitled to a
  3  9 refund of the participant's account balance.
  3 10    No right to receive investment income shall exist
  3 11 in cases of voluntary participant cancellation except
  3 12 as provided in section 12D.5.
  3 13    Sec.    .  Section 12D.9, subsection 1, paragraphs
  3 14 c, d, and e, Code 2003, are amended to read as
  3 15 follows:
  3 16    c.  Pursuant to section 12D.4, subsection 1,
  3 17 paragraph "b" 2, a separate account is established for
  3 18 each beneficiary.
  3 19    d.  Pursuant to section 12D.4, subsection 1,
  3 20 paragraph "f" 3, contributions may only be made in the
  3 21 form of cash.
  3 22    e.  Pursuant to section 12D.4, subsection 1,
  3 23 paragraph "g" 4, a participant or beneficiary shall
  3 24 not provide investment direction regarding program
  3 25 contributions or earnings held by the trust.
  3 26    Sec.    .  Section 12D.9, subsection 1, paragraph
  3 27 f, Code 2003, is amended by striking the paragraph.
  3 28    Sec.    .  Section 12D.9, subsection 2, Code 2003,
  3 29 is amended to read as follows:
  3 30    2.  State income tax treatment of the Iowa
  3 31 educational savings plan trust shall be as provided in
  3 32 section 422.7, subsections 32, and 33, and 34, and
  3 33 section 422.35, subsection 14.
  3 34    Sec.    .  Section 12D.10, subsection 1, Code 2003,
  3 35 is amended to read as follows:
  3 36    1.  The assets of the trust, including the program
  3 37 fund and the endowment fund, shall at all times be
  3 38 preserved, invested, and expended solely and only for
  3 39 the purposes of the trust and shall be held in trust
  3 40 for the participants and beneficiaries.
  3 41    Sec.    .  Section 422.7, subsection 34, Code 2003,
  3 42 is amended by striking the subsection."
  3 43    #2.  Page 1, by inserting after line 24 the
  3 44 following:
  3 45    "Sec.    .  Section 422.35, subsection 14, Code
  3 46 2003, is amended by striking the subsection."
  3 47    #3.  Title page, line 1, by inserting after the
  3 48 word "relating" the following:  "to the Iowa education
  3 49 savings plan trust and".  
  3 50 
  4  1 
  4  2                               
  4  3 CHARLES W. LARSON, JR.
  4  4 SF 384.201 80
  4  5 mg/sh
     

Text: S03108                            Text: S03110
Text: S03100 - S03199                   Text: S Index
Bills and Amendments: General Index     Bill History: General Index

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