Text: S03378 Text: S03380 Text: S03300 - S03399 Text: S Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend Senate File 458 as follows: 1 2 #1. Page 21, by inserting after line 26 the 1 3 following: 1 4 "Sec. . 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 to1 29establish an endowment fund which may be funded with1 30public funds, among other sources, the income from1 31which will be made available to participants in the1 32trust to enhance their savings invested for the1 33payment 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, 10, 11, 1 37 and 12, 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. 1 458. Solicit and accept for the benefit of the1 46endowment fund gifts, grants, and other moneys,1 47including legislative appropriations and grants from1 48any federal, state, or local governmental agency.1 49 10. Make payments to institutions of higher 1 50 education, participants, or beneficiaries pursuant to 2 1 participation agreements on behalf of beneficiaries. 2 2 11. Make refunds to participants upon the 2 3 termination of participation agreements and partial 2 4 nonqualified distributions to participants pursuant to 2 5 the provisions, limitations, and restrictions set 2 6 forth in this chapter. 2 7 12. Invest moneys fromthe endowment fund andthe 2 8 program fund in any investments which are determined 2 9 by the treasurer of state to be appropriate. 2 10 Sec. . Section 12D.3, subsections 2 and 3, Code 2 11 2003, are amended to read as follows: 2 12 2. Beneficiaries designated in participation 2 13 agreements may be designatedfrom date of birth up to,2 14but not including, their eighteenth birthdayat any 2 15 age.A substitute beneficiary may be older than age2 16eighteen provided that the substitute beneficiary is2 17not older than the original beneficiary.2 183. A participant's account balance shall be2 19refunded to the participant, less endowment fund2 20earnings, and less a refund penalty levied by the2 21trust against account balance earnings, if any, in the2 22event an account balance remains in the account for a2 23thirty-day period following the beneficiary's2 24thirtieth birthday.2 25 Sec. . Section 12D.4, Code 2003, is amended by 2 26 striking the section and inserting in lieu thereof the 2 27 following: 2 28 12D.4 PROGRAM AND ADMINISTRATIVE FUNDS 2 29 INVESTMENT AND PAYMENTS. 2 30 1. The treasurer of state shall segregate moneys 2 31 received by the trust into two funds: the program 2 32 fund and the administrative fund. 2 33 2. All moneys paid by participants in connection 2 34 with participation agreements shall be deposited as 2 35 received into separate accounts within the program 2 36 fund. 2 37 3. Contributions to the trust made by participants 2 38 may only be made in the form of cash. 2 39 4. A participant or beneficiary shall not provide 2 40 investment direction regarding program contributions 2 41 or earnings held by the trust. 2 42 5. Moneys accrued by participants in the program 2 43 fund of the trust may be used for payments to any 2 44 institution of higher education. Payments may be made 2 45 to the institution, the participant, or the 2 46 beneficiary. 2 47 Sec. . Section 12D.5, Code 2003, is amended by 2 48 striking the section and inserting in lieu thereof the 2 49 following: 2 50 12D.5 CANCELLATION OF AGREEMENTS. 3 1 A participant may cancel a participation agreement 3 2 at will. Upon cancellation of a participation 3 3 agreement, a participant shall be entitled to the 3 4 return of the participant's account balance. 3 5 Sec. . Section 12D.6, subsection 3, Code 2003, 3 6 are amended by striking the subsection. 3 7 Sec. . Section 12D.9, subsection 1, paragraphs 3 8 c, d, and e, Code 2003, are amended to read as 3 9 follows: 3 10 c. Pursuant to section 12D.4, subsection1,3 11paragraph "b"2, a separate account is established for 3 12 each beneficiary. 3 13 d. Pursuant to section 12D.4, subsection1,3 14paragraph "f"3, contributions may only be made in the 3 15 form of cash. 3 16 e. Pursuant to section 12D.4, subsection1,3 17paragraph "g"4, a participant or beneficiary shall 3 18 not provide investment direction regarding program 3 19 contributions or earnings held by the trust. 3 20 Sec. . Section 12D.9, subsection 1, paragraph 3 21 f, Code 2003, is amended by striking the paragraph. 3 22 Sec. . Section 12D.9, subsection 2, Code 2003, 3 23 is amended to read as follows: 3 24 2. State income tax treatment of the Iowa 3 25 educational savings plan trust shall be as provided in 3 26 section 422.7, subsections 32,and 33, and 34, and3 27section 422.35, subsection 14. 3 28 Sec. . Section 12D.10, subsection 1, Code 2003, 3 29 is amended to read as follows: 3 30 1. The assets of the trust, including the program 3 31 fundand the endowment fund, shall at all times be 3 32 preserved, invested, and expended solely and only for 3 33 the purposes of the trust and shall be held in trust 3 34 for the participants and beneficiaries. 3 35 Sec. . Section 422.7, subsection 34, Code 2003, 3 36 is amended by striking the subsection. 3 37 Sec. . Section 422.35, subsection 14, Code 3 38 2003, is amended by striking the subsection." 3 39 #2. Page 43, by inserting after line 30 the 3 40 following: 3 41 " . The amendments to sections 12D.1, 12D.2, 3 42 12D.3, 12D.4, 12D.5, 12D.6, 12D.9, 12D.10, 422.7, and 3 43 422.35, which shall apply retroactively to January 1, 3 44 2003, for tax years beginning on or after that date." 3 45 3 46 3 47 3 48 MIKE CONNOLLY 3 49 SF 458.215 80 3 50 mg/sh
Text: S03378 Text: S03380 Text: S03300 - S03399 Text: S Index Bills and Amendments: General Index Bill History: General Index
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