Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 209 Second Substitute (2018GS)

Sponsor

Sen. Harper, W.

Final action

Governor Signed 3/19/2018

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• permits the Utah Educational Savings Plan to use another related name for business; and
• modifies the eligibility criteria for a beneficiary of the Student Prosperity Savings Program.

Every vote on this bill

Bill text

SAVINGS PLAN AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: 
Adam Robertson
LONG TITLE
General Description:
This bill amends provisions relating to 529 savings plans.
Highlighted Provisions:
This bill:
▸ permits the Utah Educational Savings Plan to use another related name for business;
and
▸ modifies the eligibility criteria for a beneficiary of the Student Prosperity Savings
Program.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
53B-8a-103
, as last amended by Laws of Utah 2011, Chapters 46 and 342
53B-8a-201
, as enacted by Laws of Utah 2017, Chapter 389 and last amended by
Coordination Clause, Laws of Utah 2017, Chapter 382
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
53B-8a-103
 is amended to read:
53B-8a-103.
Creation of Utah Educational Savings Plan -- Powers and duties of
plan -- Certain exemptions.
(1) There is created the Utah Educational Savings Plan, which may also be known and
[
function as
] 
do business as:
(a)
 the Utah Educational Savings Plan Trust[
.
]
; or
(b) another related name.
(2) The plan:
(a) is a non-profit, self-supporting agency that administers a public trust;
(b) shall administer the various programs, funds, trusts, plans, functions, duties, and
obligations assigned to the plan:
(i) consistent with sound fiduciary principles; and
(ii) subject to review of the board; and
(c) shall be known as and managed as a qualified tuition program in compliance with
Section 529, Internal Revenue Code, that is sponsored by the state.
(3) The plan may:
(a) make and enter into contracts necessary for the administration of the plan payable
from plan money, including:
(i) contracts for goods and services; and
(ii) contracts to engage personnel, with demonstrated ability or expertise, including
consultants, actuaries, managers, counsel, and auditors for the purpose of rendering
professional, managerial, and technical assistance and advice;
(b) adopt a corporate seal and change and amend [
it from time to time
] 
the corporate
seal
;
(c) invest money within the program, administrative, and endowment funds in
accordance with the provisions under Section 
53B-8a-107
;
(d) enter into agreements with account owners, any institution of higher education, any
federal or state agency, or other entity as required to implement this chapter;
(e) solicit and accept any grants, gifts, legislative appropriations, and other money from
the state, any unit of federal, state, or local government, or any other person, firm, partnership,
or corporation for deposit to the administrative fund, endowment fund, or the program fund;
(f) make provision for the payment of costs of administration and operation of the plan;
(g) carry out studies and projections [
in order
] to advise account owners regarding
:
(i)
 present and estimated future higher education costs
;
 and
(ii)
 levels of financial participation in the plan required [
in order
] to enable account
owners to achieve their educational funding objective;
(h) participate in federal, state, local governmental, or private programs;
(i) create public and private partnerships, including investment or management
relationships with other 529 plans or entities;
(j) promulgate, impose, and collect administrative fees and charges in connection with
transactions of the plan, and provide for reasonable service charges;
(k) procure insurance:
(i) against any loss in connection with the property, assets, or activities of the plan; and
(ii) indemnifying any member of the board from personal loss or accountability arising
from liability resulting from a member's action or inaction as a member of the plan's board;
(l) administer outreach efforts to:
(i) market and publicize the plan and [
its
] 
the plan's
 products to existing and
prospective account owners; and
(ii) encourage economically challenged populations to save for post-secondary
education;
(m) adopt, trademark, and copyright names and materials for use in marketing and
publicizing the plan and [
its
] 
the plan's
 products;
(n) administer the funds of the plan;
(o) sue and be sued in [
its
] 
the plan's
 own name;
(p) own institutional accounts in the plan to establish and administer:
(i) scholarship programs; or
(ii) other college savings incentive programs, including programs designed to enhance
the savings of low income account owners investing in the plan; and
(q) have and exercise any other powers or duties that are necessary or appropriate to
carry out and effectuate the purposes of this chapter.
(4) (a) Except as provided in Subsection (4)(b), the plan is exempt from the provisions
of Title 63G, Chapter 2, Government Records Access and Management Act.
(b) (i) The annual audited financial statements of the plan described in Section
53B-8a-111
 are public records.
(ii) Financial information that is provided by the plan to the Division of Finance and
posted on the Utah Public Finance Website in accordance with Section 
63A-3-402
 is a public
record.
Section 2. Section 
53B-8a-201
 is amended to read:
53B-8a-201.
Definitions.
As used in this part:
(1) "529 savings account" means a tax-advantaged method of saving for higher
education costs on behalf of a particular individual that:
(a) meets the requirements of Section 529, Internal Revenue Code; and
(b) is managed by the plan.
(2) "Child" means an individual less than 20 years of age.
(3) "Community partner" means a nonprofit organization that provide services to a
child who is economically disadvantaged or a family member, legal guardian, or legal
custodian of a child who is economically disadvantaged.
(4) "Donation" means a gift, grant, donation, or any other conveyance of money by a
person other than the Legislature that is not made directly for the benefit or on behalf of a
particular individual.
(5) "Economically disadvantaged" means that a child is:
(a) experiencing intergenerational poverty;
(b) a member or foster child of a family with an annual income at or below 185% of
the federal poverty level; [
or
]
(c) living with a legal custodian or legal guardian with an annual family income at or
below 185% of the federal poverty level[
.
]
; or
(d) living with a legal custodian or legal guardian who can attest that the child or the
child's household is receiving services benefitting low-income households or individuals.
(6) "Eligible individual" means an individual who:
(a) is at least 15 years of age and under 20 years of age;
(b) is a student in grade 10, grade 11, or grade 12 in Utah;
(c) is economically disadvantaged; and
(d) receives, or has a family member, a foster family member, or a legal custodian or
legal guardian who receives, services from a community partner.
(7) "Federal poverty level" means the poverty level as defined by the most recently
revised poverty income guidelines published by the United States Department of Health and
Human Services in the Federal Register.
(8) "Higher education costs" means the same as that term is defined in Section
53B-8a-102.5
, except that the expenses must be incurred at:
(a) a credit-granting institution of higher education within the state system of higher
education;
(b) a private, nonprofit college or university in the state that is accredited by the
Northwestern Association of Schools and Colleges; or
(c) a technical college.
(9) "Intergenerational poverty" means the same as that term is defined in Section
35A-9-102
.
(10) "Program" means the Student Prosperity Savings Program created in Section
53B-8a-202
.
Section 3. 
Retrospective operation and effective date.
(1) Except as provided in Subsection (2), this bill has retrospective operation to
January 1, 2018.
(2) The amendments to Section 
53B-8a-201
 take effect on May 8, 2018.