Ensure that the college savings program meets the requirements of a qualified state tuition plan under 26 USC 529
Establish investment guidelines for contributions to college savings accounts and pay distributions to beneficiaries and eligible educational institutions.
Provide to each account owner, and to persons who are interested in establishing a college savings account, information about current and estimated future higher education costs, levels of participation in the college savings program that will help achieve educational funding objectives and availability of and access to financial aid.
Promulgate rules to implement and administer this section, including rules that determine whether a withdrawal from a college savings account is a qualified or nonqualified withdrawal, as defined under 26 USC 529
, and that impose more than a de minimis penalty, as defined under 26 USC 529
, for nonqualified withdrawals.
Seek rulings and guidance from the U.S. department of the treasury, the internal revenue service and the securities and exchange commission to ensure the proper implementation and administration of the college savings program.
Ensure that if the department changes vendors, the balances of college savings accounts are promptly transferred into investment instruments as similar to the original investment instruments as possible.
Keep personal and financial information pertaining to an account owner or a beneficiary closed to the public, except that the board may release to the appropriate state agency information necessary in determining a beneficiary's eligibility for state financial aid for higher education.
Before December 31 of each year, beginning in 2015, ensure that the account balance limitation under sub. (3) (bm)
is increased for the subsequent year. The annual increase shall be equal to a percentage that is not less than the most recently published national average tuition and fees percentage increase at private, nonprofit 4-year institutions, as determined by the College Board, or such other nationally reputable entity, and shall be subject to the requirements under 26 USC 529
that pertain to the prohibition on excess contributions.
(3) Account owners; beneficiaries; contributions; termination of savings accounts. 224.50(3)(a)
An account owner may do all of the following:
Contribute to a college savings account or authorize any other person to contribute to the account.
Change the beneficiary of a college savings account to a family member, as defined under 26 USC 529
, of the previous beneficiary.
Transfer all or a portion of a college savings account to another college savings account whose beneficiary is a member of the family.
Designate a person other than the beneficiary as a person to whom funds may be paid from a college savings account.
Receive distributions from a college savings account if no other person is designated.
An individual may be the beneficiary of more than one college savings account, and an account owner may be the beneficiary of a college savings account that the account owner has established.
Beginning on August 1, 2015, no contribution may be made to an account if the contribution would cause the account balance of a beneficiary's account, or the combined balance of all accounts of a beneficiary, to exceed $425,000. This contribution limitation applies to all accounts that are established on and after that date, and to all accounts that are in existence on that date that have not yet reached the balance limit specified in this paragraph, subject to the annual increase described in sub. (2) (i)
The board shall establish a minimum initial contribution to a college savings account that may be waived if the account owner agrees to contribute to a college savings account through a payroll deduction or automatic deposit plan. The board shall ensure that any such plan permits the adjustment of scheduled deposits because of a change in the account owner's economic circumstances or a beneficiary's educational plans.
An account owner under this section may terminate his or her college savings account if any of the following occurs:
The beneficiary graduates from high school but is unable to gain admission to an institution of higher education after a good faith effort.
The beneficiary attended an institution of higher education but involuntarily failed to complete the program in which he or she was enrolled.
The beneficiary is at least 18 years old and one of the following applies:
The beneficiary has decided not to attend an institution of higher education.
The beneficiary attended an institution of higher education but voluntarily withdrew without completing the program in which he or she was enrolled.
Other circumstances determined by the board to be grounds for termination.
The board may terminate a college savings account if any portion of the college savings account balance remains unused 10 years after the anticipated academic year of the beneficiary's initial enrollment in an eligible educational institution.
(4) Contracts with professionals.
The board may enter into a contract for the services of accountants, attorneys, consultants and other professionals to assist in the administration and evaluation of the college savings program.
Annually, the board shall submit a report to the governor, and to the appropriate standing committees of the legislature under s. 13.172 (3)
, on the performance of the college savings program, including any recommended changes to the program.
Nothing in this section guarantees an individual's admission to, retention by or graduation from any institution of higher education; a rate of interest or return on a college savings account; or the payment of principal, interest or return on a college savings account.
(7) Exemption from garnishment, lien, levy, attachment and execution; security for loan. 224.50(7)(a)
An account established under this section is not subject to garnishment, lien, levy, attachment, execution or other process of law.
No interest in a college savings account may be pledged as security for a loan.
(8) Financial aid calculations.
The balance of a college savings account shall not be included in the calculation of a beneficiary's eligibility for state financial aid for higher education if the beneficiary notifies the higher educational aids board and the eligible educational institution that the beneficiary is planning to attend that he or she is a beneficiary of a college savings account and if the account owner agrees to release to the higher educational aids board and the eligible educational institution information necessary for the calculation under this subsection.
History: 1999 a. 44
; 2001 a. 7
; 2011 a. 32
; Stats. 2011 s. 16.641; 2013 a. 227
; 2015 a. 55
; 2017 a. 59
; Stats. 2017 s. 224.50; 2017 a. 231
See also ch. DFI-CSP 1
, Wis. adm. code.
College savings program vendor. 224.51(1g)(1g)
In this section, “department” means the department of financial institutions.
The department shall determine the factors to be considered in selecting a vendor of the program under s. 224.50
, which shall include:
The person's ability to satisfy record-keeping and reporting requirements.
The fees, if any, that the person proposes to charge account owners.
The person's plan for promoting the college savings program and the investment that the person is willing to make to promote the program.
The minimum initial contribution or minimum contributions that the person will require.
The ability and willingness of the person to accept electronic contributions.
The ability of the person to augment the college savings program with additional, beneficial services related to the program.
The department shall solicit competitive sealed proposals under s. 16.75 (2m)
from nongovernmental persons to serve as vendor of the college savings program. The department shall select the vendor based upon factors determined by the department under sub. (1m)
The contract between the department and the vendor shall ensure all of the following:
That the vendor reimburses the state for all administrative costs that the state incurs for the college savings program.
That a firm of certified public accountants selected by the vendor annually audits the college savings program and provides a copy of the audit to the college savings program board.
That each account owner receives a quarterly statement that identifies the contributions to the college savings account during the preceding quarter, the total contributions to and the value of the college savings account through the end of the preceding quarter and any distributions made during the preceding quarter.
That the vendor communicate to the beneficiary and account owner the requirements of s. 224.50 (8)
History: 1999 a. 44
; 2001 a. 38
; 2011 a. 32
; 2017 a. 59
; Stats. 2017 s. 224.51.
Repayment to the general fund. 224.52(1)(1)
The secretary of administration shall transfer from the tuition trust fund, the college savings program trust fund, the college savings program bank deposit trust fund, or the college savings program credit union deposit trust fund to the general fund an amount equal to the amount expended from the appropriations under s. 20.505 (9) (a)
, 1995 stats., s. 20.585 (2) (a)
, 2001 stats., and s. 20.585 (2) (am)
, 2001 stats., when the secretary of administration determines, after consultation with the secretary of financial institutions, that funds in those trust funds are sufficient to make the transfer. The secretary of administration may make the transfer in installments.
Annually, by June 1, the secretary of financial institutions, after consultation with the secretary of administration, shall submit a report to the joint committee on finance on the amount available for repayment under sub. (1)
, the amount repaid under sub. (1)
, and the outstanding balance under sub. (1)
History: 2001 a. 16
; 2003 a. 33
; 2005 a. 478
; 2011 a. 32
; Stats. 2011 s. 16.642; 2017 a. 59
; Stats. 2017 s. 224.52.
MORTGAGE BANKERS, LOAN ORIGINATORS
AND MORTGAGE BROKERS
In this subchapter:
“Another state" means any state of the United States other than Wisconsin; the District of Columbia; any territory of the United States; Puerto Rico; Guam; American Samoa; the Trust Territory of the Pacific Islands; the Virgin Islands; or the Northern Mariana Islands.
“Bona fide nonprofit organization" means an organization that is described in section 501
(c) (3) of the Internal Revenue Code and exempt from federal income tax under section 501
(a) of the Internal Revenue Code, that is certified by the federal department of housing and urban development or the Wisconsin Housing and Economic Development Authority, and that does all of the following:
Promotes affordable housing or provides home ownership education or similar services.
Conducts its activities in a manner that serves public or charitable purposes.
Receives funding and revenue and charges fees in a manner that does not create an incentive for itself or its employees to act other than in the best interests of its clients.
Compensates its employees in a manner that does not create an incentive for its employees to act other than in the best interests of its clients.
Provides to, or identifies for, the borrower residential mortgage loans with terms favorable to the borrower and comparable to residential mortgage loans and housing assistance provided under government housing assistance programs.
“Branch office" means an office or place of business, other than the principal office, located in this state or another state, where a mortgage loan originator, mortgage banker, or mortgage broker engages in the mortgage loan business subject to this subchapter.
“Depository institution" has the meaning given in 12 USC 1813
(c) (1), but also includes any state or federal credit union.
“Division" means the division of banking.
“Employee" means an individual whose manner and means of performance of work are subject to the right of control of, or are controlled by, a person, and whose compensation for federal income tax purposes is reported, or required to be reported, on a W-2 form issued by the controlling person.
Except as provided in par. (b)
, “expungement" means to have stricken or obliterated from a record of criminal conviction all references to the defendant's name and identity.
For a criminal conviction entered in another state, “expungement" has the meaning given under the laws of the state where the criminal conviction is entered.
“Federal banking agency" means the board of governors of the federal reserve system, the U.S. office of the comptroller of the currency, the national credit union administration, or the federal deposit insurance corporation.
“Finds," with respect to a residential mortgage loan, means to assist a residential mortgage loan applicant in locating a lender for the purpose of obtaining a residential mortgage loan and to make arrangements for a residential mortgage loan applicant to obtain a residential mortgage loan, including collecting information on behalf of an applicant and preparing a loan package.
“Housing finance agency" means any authority that is all of the following:
Chartered by a state to help meet the affordable housing needs of the residents of the state.
Supervised directly or indirectly by the state government.
Subject to audit and review by the state in which it operates.
“Loan processor or underwriter" means an individual who, as an employee, performs clerical or support duties at the direction of and subject to the supervision and instruction of a mortgage loan originator licensed under s. 224.725
or exempt from licensing under s. 224.725 (1m)
, which clerical or support duties may include any of the following occurring subsequent to the receipt of a residential mortgage loan application:
The receipt, collection, distribution, and analysis of information common for the processing or underwriting of a residential mortgage loan.
Communicating with a residential mortgage loan applicant to obtain the information necessary for the processing or underwriting of a residential mortgage loan, to the extent that the communication does not include offering or negotiating loan rates or terms or providing counseling related to loan rates or terms.
“Mortgage banker" means a person who does any of the following:
Originates residential mortgage loans for itself, as payee on the note evidencing the residential mortgage loan, or for another person.
Sells residential mortgage loans or interests in residential mortgage loans to another person.
Services residential mortgage loans or provides escrow services.