January 25, 2024 - Introduced by Representatives Macco, Goyke, C. Anderson, J. Anderson, Andraca, Baldeh, Bare, Behnke, Clancy, Conley, Considine, Drake, Emerson, Hong, Joers, S. Johnson, Krug, Madison, Moore Omokunde, Mursau, Myers, Neubauer, O’Connor, Ohnstad, Palmeri, Ratcliff, Shankland, Sinicki, Snodgrass, Spiros, Subeck and Tranel, cosponsored by Senators Wimberger, Hesselbein, Roys, Spreitzer and Larson. Referred to Committee on Financial Institutions.
AB1012,,22An Act to amend 224.50 (2) (a) and 224.50 (3) (bm); and to create 20.144 (3) (ti), 69.20 (3) (b) 6. and 7., 224.50 (1) (d) and 224.50 (3m) of the statutes; relating to: creating a WisKids savings account program within the college savings program and making an appropriation. AB1012,,33Analysis by the Legislative Reference Bureau This bill creates a WisKids savings accounts program under which the Department of Financial Institutions establishes a master college savings account from which money may be distributed to pay for qualified higher education expenses of children born or adopted in this state. The bill also requires the Department of Health Services to provide information to DFI related to the WisKids savings account program and better aligns with federal law the purposes for which college savings account expenditures may be made.
Under current law, the College Savings Program Board, which is attached to DFI, administers the state’s college savings program, commonly referred to by its two program options “Edvest” and “Tomorrow’s Scholar.” The state’s college savings program is a qualified tuition program authorized under federal law, more generally known as a 529 plan. Under the program, a person may establish a college savings account to cover, consistent with federal law, a beneficiary’s 1) tuition, fees, room and board, and other costs required to attend an eligible educational institution; and 2) tuition expenses at an elementary or secondary school.
Current law requires DFI to select a vendor for the college savings program through a competitive bidding process, based on factors determined by DFI. The contract between DFI and the vendor must contain certain requirements, including that the vendor reimburse the state for administrative program costs.