Bill
Number: S.B. 1528
Leach
Floor Amendment
Reference
to: printed bill
Amendment
drafted by: Leg Council
FLOOR
AMENDMENT EXPLANATION
1. Modifies the definition
of qualified higher education expenses for the Family College Savings
Program (Program) to include:
a) expenses for fees,
books, supplies and equipment required for participation in an apprenticeship
program that meets the definition of a qualified higher education expense in
the Internal Revenue Code; and
b)
amounts
paid as principal or interest on any qualified education loan for certain
individuals pursuant to the Internal Revenue Code.
2. Modifies the definition
of a qualified withdrawal to include amounts paid as principal or
interest on a qualified education loan, if made in accordance with statutory
requirements.
3. Caps the total amount
of qualified withdrawals for loans from any individual Program trust account at
$10,000, reduced by the amount of withdrawals for all prior taxable years.
4. Adds a member who
represents a U.S. Department of Labor-approved apprenticeship program to the
Program Advisory Committee.
5. Removes one public
member from the Program Advisory Committee.
6. Exempts the State Board
of Investment from rulemaking requirements for one year to adopt rules relating
to the Program.
7. Transfers all full-time
equivalent positions, rather than all personnel, of the Commission on
Postsecondary Education to the State Treasurer.
8. Transfers all unspent
and unencumbered monies of the Commission on Postsecondary Education relating
to the Program to the State Treasurer.
9. Adds
a legislative intent clause stating that it is the Legislature's intent that
any renewal of a financial institution to act as depository and manager of the
Program before the effective date of this legislation be for no more than one
year and that no new contracts with financial institutions be entered into
before the effective date.
10. Makes technical and conforming changes.
Page
3, between lines 3 and 4, insert:
"(iv) Expenses for fees, books,
supplies and equipment required for a designated beneficiary to participate in
an apprenticeship program that is registered and certified with the United
States secretary of labor under section 1 of the national apprenticeship act
(50 Stat. 664; 29 United States Code section 50) if these expenses meet the
definition of qualified higher education expenses in section 529 of the
internal revenue code."
Between
lines 6 and 7, insert:
"(c) Includes amounts paid as
principal or interest on any qualified education loan as defined in section
221(d) of the internal revenue code of the designated
beneficiary or a brother, sister, stepbrother or stepsister of the designated
beneficiary pursuant to section 529 of the internal revenue code."
Line
8, strike "either" insert "any of the following"
Between lines 16 and 17, insert:
"(c) Amounts paid as principal or
interest on any qualified education loan as defined in section 221(d) of the internal revenue code of the designated beneficiary or a
brother, sister, stepbrother or stepsister of the designated beneficiary, but
only if the withdrawal is made in accordance with this article. The amount of
qualified withdrawals under this article with respect to the loans of any
designated beneficiary or a brother, sister, stepbrother or stepsister of the designated
beneficiary may not exceed $10,000, reduced by the amount of withdrawals so
treated for all prior taxable years."
Page 14, between lines 41 and 42,
insert:
"8. One member who represents a United States department of
labor‑approved apprenticeship program."
Renumber to conform
Line
42, strike "three" insert "two"
Page
15, line 23, strike "personnel" insert "FTE positions"
Line
24, after "appropriated" insert "and nonappropriated"
Between
lines 32 and 33, insert:
"Sec. 12. Exemption from rulemaking
For
the purposes of this act, the state board of investment is exempt from the
rulemaking requirements of title 41, chapter 6, Arizona Revised Statutes, for
one year after the effective date of this act for the purpose of adopting rules
relating to the family college savings program pursuant to title 15, chapter
14, article 7, Arizona Revised Statutes, as amended by this act.
Sec. 13. Legislative intent
The
legislature intends that the term of renewal of an existing appointment of a
financial institution as a depository or manager of the family college savings
program pursuant to title 15, chapter 14, article 7, Arizona Revised Statutes,
as amended by this act, that occurs before the effective date of this act not
be for more than one year after the date of renewal and that no new contracts
with one or more financial institutions to act as depositories or managers be
entered into before the effective date of this act."
Renumber
to conform
Amend title to conform