SB245 (2007) Detail

Relative to the New Hampshire college tuition savings plan.


CHAPTER 196

SB 245 – FINAL VERSION

2007 SESSION

07-1303

04/10

SENATE BILL 245

AN ACT relative to the New Hampshire college tuition savings plan.

SPONSORS: Sen. Estabrook, Dist 21; Sen. Janeway, Dist 7; Sen. Hassan, Dist 23; Sen. Bragdon, Dist 11; Sen. Odell, Dist 8; Rep. Ingram, Rock 4

COMMITTEE: Education

ANALYSIS

This bill makes various changes to RSA 195-H, the college tuition savings plan.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

07-1303

04/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT relative to the New Hampshire college tuition savings plan.

Be it Enacted by the Senate and House of Representatives in General Court convened:

196:1 College Tuition Savings Plan; Definitions. Amend RSA 195-H:1, IV to read as follows:

IV. “Savings plan” means any plan administered as the New Hampshire college tuition savings plan.

196:2 College Tuition Savings Plan; Advisory Commission. Amend the introductory paragraph of RSA 195-H:2, I(a) to read as follows:

(a) There is established the New Hampshire college tuition savings plan advisory commission which shall ensure the proper administration and management of the savings plan. The advisory commission shall ensure that the savings plan complies with the requirements of section 529 of the Internal Revenue Code of 1986, as amended, and any related federal law applicable to the savings plan. The commission shall also be responsible for ensuring the proper administration, implementation, and management of the New Hampshire excellence in higher education endowment trust fund established in RSA 6:38. The commission shall consist of the following members:

196:3 College Tuition Savings Plan. Amend RSA 195-H:4, I(a) to read as follows:

(a) The treasurer shall, as needed, issue requests for proposals to evaluate and determine the vehicle for investments of the savings plan and its administration.

196:4 College Tuition Savings Plan. Amend RSA 195-H:4, II to read as follows:

II. [The savings plan shall require an initial application fee which shall be used for administrative costs of the savings plan.] The commission shall determine and make recommendations regarding the use of personnel in the treasurer's office with costs for such administrative support to be funded from the savings plan.

196:5 College Tuition Savings Plan; Residency. Amend RSA 195-H:5 to read as follows:

195-H:5 Residency. [Both in-state and out-of-state students] Persons shall be eligible to participate in and benefit from the savings plan, [as provided in RSA 195-H:6] regardless of state of residency.

196:6 College Tuition Savings Plan; Liability and Interest and Dividends Exemptions. Amend RSA 195-H:9 and 10 to read as follows:

195-H:9 Liability Exemption. Neither the state nor [the] any eligible educational institution shall be liable for any shortage of funds in the event that the accruals from the savings plan are insufficient to meet the tuition requirements of such institution chosen by the student for which the plan was intended.

195-H:10 Funds Exempt From Interest and Dividends Tax. Income and distributions from any qualified tuition program as defined in the Internal Revenue Code of 1986, as amended, shall be exempt from the New Hampshire interest and dividends tax pursuant to RSA 77:4-e, provided that distributions from the plan which are subject to federal income tax shall be subject to the interest and dividends tax pursuant to RSA 77 on the accrued income portion of the savings plan distribution.

196:7 Repeal. The following are repealed:

I. RSA 195-H:1, III, relative to qualified educational expenses.

II. RSA 195-H:3, III-VII, relative to certain rulemaking authority of the advisory commission.

III. RSA 195-H:6 through RSA 195-H:8, relative to use of tuition savings, deferred use, and withdrawal, refund, or transfer of funds.

196:8 Effective Date. This act shall take effect 60 days after its passage.

Approved: June 18, 2007

Effective: August 17, 2007