| 1 | 1 | | 25 LC 59 0055 |
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| 2 | 2 | | House Bill 284 |
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| 3 | 3 | | By: Representatives Schofield of the 63 |
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| 4 | 4 | | rd |
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| 5 | 5 | | , Hugley of the 141 |
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| 6 | 6 | | st |
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| 7 | 7 | | , Park of the 107 |
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| 8 | 8 | | th |
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| 9 | 9 | | , Davis of the |
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| 10 | 10 | | 87 |
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| 11 | 11 | | th |
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| 12 | 12 | | , Scott of the 76 |
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| 13 | 13 | | th |
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| 14 | 14 | | , and others |
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| 15 | 15 | | A BILL TO BE ENTITLED |
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| 16 | 16 | | AN ACT |
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| 17 | 17 | | To amend Title 39 of the Official Code of Georgia Annotated, relating to minors, so as to |
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| 18 | 18 | | 1 |
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| 19 | 19 | | provide for the creation of the Georgia Baby Bond Savings Plan; to provide for the2 |
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| 20 | 20 | | administration of such plan; to provide for a board of directors; to authorize the board of3 |
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| 21 | 21 | | directors to invest plan funds; to provide for the creation of a fund in the state treasury; to4 |
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| 22 | 22 | | provide the authority for establishing a comprehensive investment plan; to provide for5 |
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| 23 | 23 | | furnishing annual financial statements to savings trust account owners; to provide for6 |
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| 24 | 24 | | eligibility requirements for the plan; to authorize the General Assembly to contribute to the7 |
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| 25 | 25 | | plan; to provide for minimum contributions by the General Assembly to the plan; to provide8 |
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| 26 | 26 | | for definitions; to provide for related matters; to repeal conflicting laws; and for other9 |
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| 27 | 27 | | purposes.10 |
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| 28 | 28 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11 |
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| 29 | 29 | | SECTION 1.12 |
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| 30 | 30 | | Title 39 of the Official Code of Georgia Annotated, relating to minors, is amended by adding13 |
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| 31 | 31 | | a new chapter to read as follows:14 |
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| 32 | 32 | | H. B. 284 |
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| 33 | 33 | | - 1 - 25 LC 59 0055 |
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| 34 | 34 | | "CHAPTER 715 |
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| 35 | 35 | | 39-7-1.16 |
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| 36 | 36 | | The purpose of this chapter is to:17 |
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| 37 | 37 | | (1) Provide a program or programs of savings for the benefit of children under 18 to18 |
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| 38 | 38 | | assist with building assets to help pay for financial needs;19 |
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| 39 | 39 | | (2) Provide for the creation of the Georgia Baby Bond Savings Plan as an instrumentality20 |
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| 40 | 40 | | of the State of Georgia to assist children under 18 years of age with financial needs and21 |
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| 41 | 41 | | establishing a foundation for their financial futures;22 |
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| 42 | 42 | | (3) Encourage timely financial planning by the creation of savings trust accounts; and23 |
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| 43 | 43 | | (4) Provide a savings program for those persons who wish to save to meet a variety of24 |
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| 44 | 44 | | financial needs.25 |
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| 45 | 45 | | 39-7-2.26 |
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| 46 | 46 | | As used in this chapter, the term:27 |
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| 47 | 47 | | (1) 'Account contributor' means a resident or nonresident person, corporation, trust,28 |
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| 48 | 48 | | charitable organization, or other entity which contributes to or invests money in a savings29 |
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| 49 | 49 | | trust account under the program on behalf of a beneficiary. For resident persons, the30 |
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| 50 | 50 | | account contributor may also be the designated beneficiary of the account.31 |
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| 51 | 51 | | (2) 'Account owner' means a resident or nonresident person, corporation, trust, charitable32 |
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| 52 | 52 | | organization, or other entity that establishes a savings trust account under the program on33 |
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| 53 | 53 | | behalf of a beneficiary. For resident persons, the account owner may also be the34 |
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| 54 | 54 | | designated beneficiary of the account.35 |
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| 55 | 55 | | (3) 'Beneficiary' means a resident beneficiary of a savings trust agreement.36 |
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| 56 | 56 | | (4) 'Board' means the board of directors of the Georgia Baby Bond Savings Plan.37 |
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| 57 | 57 | | (5) 'Financial organization' means an organization which is:38 |
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| 58 | 58 | | H. B. 284 |
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| 59 | 59 | | - 2 - 25 LC 59 0055 |
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| 60 | 60 | | (A) A fiduciary authorized to act as a trustee pursuant to the provisions of the federal39 |
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| 61 | 61 | | Employee Retirement Income Security Act of 1974, as amended, or an insurance40 |
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| 62 | 62 | | company or affiliate; and41 |
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| 63 | 63 | | (B)(i) Licensed or chartered by the Department of Insurance;42 |
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| 64 | 64 | | (ii) Licensed or chartered by the Department of Banking and Finance;43 |
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| 65 | 65 | | (iii) Chartered by an agency of the federal government;44 |
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| 66 | 66 | | (iv) Subject to the jurisdiction and regulation of the federal Securities and Exchange45 |
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| 67 | 67 | | Commission;46 |
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| 68 | 68 | | (v) Any other entity otherwise authorized to act in this state as a trustee pursuant to47 |
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| 69 | 69 | | the provisions of the federal Employee Retirement Income Security Act of 1974, as48 |
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| 70 | 70 | | amended; or49 |
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| 71 | 71 | | (vi) Any investment adviser registered with the federal Securities and Exchange50 |
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| 72 | 72 | | Commission pursuant to the Investment Advisers Act of 1940.51 |
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| 73 | 73 | | (6) 'Internal Revenue Code' or 'Internal Revenue Code of 1986' shall have the same52 |
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| 74 | 74 | | meaning as set forth in Code Section 48-1-2.53 |
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| 75 | 75 | | (7) 'Plan' means the Georgia Baby Bonds Savings Plan established under this chapter.54 |
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| 76 | 76 | | (8) 'Program' means a program of savings trust agreements and savings trust accounts55 |
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| 77 | 77 | | provided by the plan, allowing for investment in stocks, bonds, and treasuries, among56 |
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| 78 | 78 | | other financial instruments.57 |
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| 79 | 79 | | (9) 'Qualified expense' means expenses for the following:58 |
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| 80 | 80 | | (A) Education of the beneficiary at:59 |
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| 81 | 81 | | (i) An institution of higher education; or60 |
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| 82 | 82 | | (ii) An area career and technical education school;61 |
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| 83 | 83 | | (B) Ownership of a home by the beneficiary;62 |
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| 84 | 84 | | (C) Any expenses paid or incurred on or after the date on which the account holder63 |
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| 85 | 85 | | attains age 59 and one-half years;64 |
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| 86 | 86 | | H. B. 284 |
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| 87 | 87 | | - 3 - 25 LC 59 0055 |
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| 88 | 88 | | (D) Any other investment in financial assets or personal capital that provides long-term65 |
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| 89 | 89 | | gains to wages and wealth, as established under regulations promulgated by the state66 |
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| 90 | 90 | | treasurer, in consultation with the board; and67 |
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| 91 | 91 | | (E) Any other expense approved by the board.68 |
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| 92 | 92 | | (10) 'Qualified withdrawal' means a withdrawal by an account owner for qualified69 |
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| 93 | 93 | | expenses of the beneficiary.70 |
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| 94 | 94 | | (11) 'Savings trust account' means an account established by an account owner pursuant71 |
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| 95 | 95 | | to this chapter on behalf of a beneficiary in order to apply distributions from the account72 |
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| 96 | 96 | | toward qualified expenses.73 |
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| 97 | 97 | | (12) 'Savings trust agreement' means the agreement entered into between the board and74 |
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| 98 | 98 | | the account owner establishing a savings trust account.75 |
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| 99 | 99 | | (13) 'Trust fund' means the Georgia Baby Bond Savings Plan Trust Fund.76 |
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| 100 | 100 | | (14) 'Unqualified withdrawal' means a withdrawal by an account owner that is not:77 |
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| 101 | 101 | | (A) A qualified withdrawal; or78 |
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| 102 | 102 | | (B) A withdrawal by reason of the death or disability of the beneficiary.79 |
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| 103 | 103 | | 39-7-3.80 |
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| 104 | 104 | | (a)(1) There is created the Georgia Baby Bond Savings Plan, as a body corporate and81 |
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| 105 | 105 | | politic and an instrumentality of the state, for purposes of establishing and maintaining82 |
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| 106 | 106 | | the Georgia Baby Bond Savings Plan as provided by this chapter. The plan shall be83 |
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| 107 | 107 | | governed by a board of directors consisting of the Governor as chairperson, the state84 |
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| 108 | 108 | | auditor, the director of the Office of Planning and Budget, the state revenue85 |
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| 109 | 109 | | commissioner, three directors who shall be appointed by and serve at the pleasure of the86 |
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| 110 | 110 | | Governor, and the state treasurer who shall act as administrative officer of the board. A87 |
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| 111 | 111 | | majority of the board shall constitute a quorum and the acts of the majority shall be the88 |
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| 112 | 112 | | acts of the board.89 |
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| 113 | 113 | | H. B. 284 |
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| 114 | 114 | | - 4 - 25 LC 59 0055 |
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| 115 | 115 | | (2) Members of the board who are state officials or employees shall receive no90 |
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| 116 | 116 | | compensation for their service on the board but may be reimbursed for expenses incurred91 |
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| 117 | 117 | | by them in the performance of their duties as members of the board. Any members of the92 |
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| 118 | 118 | | board who are not state officials or employees shall receive a daily expense allowance in93 |
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| 119 | 119 | | the amount specified in subsection (b) of Code Section 45-7-21 for each day such94 |
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| 120 | 120 | | member is in attendance at a meeting of the board. Expense allowances and other costs95 |
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| 121 | 121 | | authorized in this paragraph shall be paid from moneys in the trust fund.96 |
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| 122 | 122 | | (b) The board shall have the authority necessary or convenient to carry out the purposes97 |
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| 123 | 123 | | and provisions of this chapter and the purposes and objectives of the trust fund, including,98 |
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| 124 | 124 | | but not limited to, the authority to:99 |
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| 125 | 125 | | (1) Have a seal and alter the same at its pleasure; bring and defend actions; make,100 |
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| 126 | 126 | | execute, and deliver contracts, conveyances, and other instruments necessary or101 |
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| 127 | 127 | | convenient to the exercise of its powers; and make and amend bylaws;102 |
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| 128 | 128 | | (2) Adopt such rules and regulations as are necessary to implement this chapter, subject103 |
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| 129 | 129 | | to applicable federal laws and regulations, including rules regarding transfers of funds104 |
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| 130 | 130 | | between savings trust agreements;105 |
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| 131 | 131 | | (3) Contract for necessary goods and services, employ necessary personnel, and engage106 |
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| 132 | 132 | | the services of consultants and other qualified persons and entities for administrative and107 |
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| 133 | 133 | | technical assistance in carrying out the responsibilities of the trust fund under terms and108 |
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| 134 | 134 | | conditions that the board deems reasonable; and any and all state departments or agencies109 |
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| 135 | 135 | | are authorized to contract with the board and the board is authorized to contract with such110 |
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| 136 | 136 | | departments or agencies, upon such terms, for such consideration, and for such purposes111 |
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| 137 | 137 | | as it deems advisable;112 |
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| 138 | 138 | | (4) Solicit and accept gifts, including bequests or other testamentary gifts made by will,113 |
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| 139 | 139 | | trust, or other disposition grants, loans, and other aids from any personal source or114 |
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| 140 | 140 | | participate in any other way in any federal, state, or local government program in carrying115 |
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| 141 | 141 | | out the purposes of this chapter;116 |
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| 142 | 142 | | H. B. 284 |
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| 143 | 143 | | - 5 - 25 LC 59 0055 |
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| 144 | 144 | | (5) Define the terms and conditions under which payments may be withdrawn or117 |
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| 145 | 145 | | refunded from the trust fund established under this chapter and impose reasonable118 |
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| 146 | 146 | | charges for a withdrawal or refund;119 |
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| 147 | 147 | | (6) Impose reasonable time limits on the use of savings trust account distributions120 |
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| 148 | 148 | | provided by the program;121 |
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| 149 | 149 | | (7) Regulate the receipt of contributions or payments to the trust fund;122 |
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| 150 | 150 | | (8) Require and collect fees and charges to cover the reasonable costs of administering123 |
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| 151 | 151 | | savings trust accounts and impose penalties on an unqualified withdrawal of funds or for124 |
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| 152 | 152 | | entering into a savings trust agreement on a fraudulent basis;125 |
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| 153 | 153 | | (9) Procure insurance against any loss in connection with the property, assets, and126 |
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| 154 | 154 | | activities of the trust fund or plan;127 |
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| 155 | 155 | | (10) Require that account owners of savings trust agreements verify in writing, before128 |
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| 156 | 156 | | a person authorized to administer oaths, any requests for contract conversions,129 |
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| 157 | 157 | | substitutions, transfers, cancellations, refund requests, or contract changes of any nature;130 |
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| 158 | 158 | | (11) Solicit proposals and contract for the marketing of the program, provided that any131 |
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| 159 | 159 | | materials produced by a marketing contractor for the purpose of marketing the program132 |
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| 160 | 160 | | must be approved by the board before being made available to the public, unless133 |
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| 161 | 161 | | otherwise directed by the board; establish a name for the program; and adopt and use134 |
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| 162 | 162 | | marketing names, brands, logos, or other descriptions or representations of the program135 |
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| 163 | 163 | | as may be deemed desirable or convenient for promoting, publicizing, or otherwise136 |
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| 164 | 164 | | marketing the program within this state;137 |
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| 165 | 165 | | (12) Delegate responsibility for administration of any program to a financial organization138 |
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| 166 | 166 | | that the board determines is qualified;139 |
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| 167 | 167 | | (13) Make all necessary and appropriate arrangements with colleges and universities or140 |
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| 168 | 168 | | other entities in order to fulfill its obligations under savings trust agreements;141 |
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| 169 | 169 | | (14) Establish other policies, procedures, and criteria and perform such other acts as142 |
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| 170 | 170 | | necessary or appropriate to implement and administer this chapter; and143 |
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| 171 | 171 | | H. B. 284 |
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| 172 | 172 | | - 6 - 25 LC 59 0055 |
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| 173 | 173 | | (15) Authorize the state treasurer to carry out any or all of the powers and duties144 |
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| 174 | 174 | | enumerated in this subsection for efficient and effective administration of the plan,145 |
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| 175 | 175 | | program, and trust fund.146 |
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| 176 | 176 | | (c) The plan is assigned to the Department of Administrative Services for administrative147 |
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| 177 | 177 | | purposes only.148 |
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| 178 | 178 | | 39-7-4.149 |
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| 179 | 179 | | (a) The plan, through one or more programs, shall make savings trust agreements and150 |
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| 180 | 180 | | savings trust accounts available to the public, under which account owners or account151 |
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| 181 | 181 | | contributors may make contributions on behalf of qualified beneficiaries. Contributions152 |
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| 182 | 182 | | to a savings trust account shall be exempt from state taxation. Contributions and153 |
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| 183 | 183 | | investment earnings on the contributions may be used for any qualified expenses of a154 |
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| 184 | 184 | | designated beneficiary. The state shall not guarantee that such contributions together with155 |
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| 185 | 185 | | the investment return on such contributions, if any, will be adequate to pay for qualified156 |
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| 186 | 186 | | expenses in full. Savings trust agreements shall be available to residents of the State of157 |
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| 187 | 187 | | Georgia. One or more savings trust accounts may be established for any qualified158 |
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| 188 | 188 | | beneficiary, subject to the limitations of this chapter.159 |
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| 189 | 189 | | (b) Each savings trust agreement made pursuant to this chapter shall include the following160 |
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| 190 | 190 | | terms and provisions:161 |
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| 191 | 191 | | (1) The maximum and minimum contribution allowed on behalf of each beneficiary for162 |
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| 192 | 192 | | the payment of qualified expenses, provided that the contribution limit shall correspond163 |
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| 193 | 193 | | with the maximum contribution allowed for the payment of qualified higher education164 |
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| 194 | 194 | | expenses under Section 529 of the Internal Revenue Code of 1986 or other applicable165 |
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| 195 | 195 | | law; 166 |
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| 196 | 196 | | (2) Provisions for assessment and collection of reasonable fees which shall be charged167 |
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| 197 | 197 | | to cover the administration of the account;168 |
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| 198 | 198 | | H. B. 284 |
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| 199 | 199 | | - 7 - 25 LC 59 0055 |
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| 200 | 200 | | (3) Provisions for a benchmark rate of annual return corresponding with the legal rate169 |
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| 201 | 201 | | of interest, as defined under Code Section 7-4-2;170 |
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| 202 | 202 | | (4) Provisions for withdrawals, refunds, rollovers, transfers, and any penalties. An171 |
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| 203 | 203 | | account owner may roll over all or part of any balance in an account to an account172 |
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| 204 | 204 | | established on behalf of a different beneficiary to the extent allowed by law. Unqualified173 |
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| 205 | 205 | | withdrawals of contributions and earnings shall be subject to such penalties or taxation174 |
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| 206 | 206 | | as may be imposed by the Internal Revenue Code. At its discretion, the board may175 |
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| 207 | 207 | | impose additional penalties on unqualified withdrawals to be used by the plan to defray176 |
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| 208 | 208 | | expenses; provided, however, that no such penalty shall apply to any withdrawal that177 |
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| 209 | 209 | | does not require a penalty or tax surcharge under the Internal Revenue Code of 1986;178 |
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| 210 | 210 | | (5) The name, address, and date of birth of the beneficiary on whose behalf the savings179 |
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| 211 | 211 | | trust account is opened;180 |
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| 212 | 212 | | (6) Terms and conditions for a substitution of the beneficiary originally named;181 |
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| 213 | 213 | | (7) Terms and conditions for termination of the account, including any refunds,182 |
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| 214 | 214 | | withdrawals, or transfers, applicable penalties, and the name of the person or persons183 |
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| 215 | 215 | | entitled to terminate the account;184 |
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| 216 | 216 | | (8) All other rights and obligations of the account owner or account contributor and the185 |
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| 217 | 217 | | trust fund; and186 |
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| 218 | 218 | | (9) Any other terms and conditions that the board deems necessary or appropriate,187 |
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| 219 | 219 | | including without limitation those necessary to conform the savings trust account with188 |
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| 220 | 220 | | applicable federal law.189 |
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| 221 | 221 | | 39-7-5.190 |
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| 222 | 222 | | (a)(1) There is created the Georgia Baby Bond Savings Plan Trust Fund as a separate191 |
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| 223 | 223 | | fund in the state treasury. The trust fund shall be administered by the state treasurer. The192 |
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| 224 | 224 | | state treasurer shall credit to the trust fund all amounts transferred to such fund. The trust193 |
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| 225 | 225 | | fund shall consist of money remitted in accordance with savings trust agreements and any194 |
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| 226 | 226 | | H. B. 284 |
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| 227 | 227 | | - 8 - 25 LC 59 0055 |
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| 228 | 228 | | moneys acquired from other governmental or private sources and shall receive and hold195 |
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| 229 | 229 | | all payments, contributions, and deposits intended for it as well as gifts, bequests, or196 |
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| 230 | 230 | | endowments; grants; any other public or private source of funds; and all earnings on the197 |
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| 231 | 231 | | fund until disbursed as provided under this Code section. The amounts on deposit in the198 |
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| 232 | 232 | | trust fund shall not constitute property of the state. Amounts on deposit in the trust fund199 |
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| 233 | 233 | | shall not be commingled with state funds, and the state shall have no claim to or interest200 |
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| 234 | 234 | | in such funds other than the amount of reasonable fees and charges assessed to cover201 |
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| 235 | 235 | | administration costs. Savings trust agreements or any other contract entered into by or202 |
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| 236 | 236 | | on behalf of the trust fund shall not constitute a debt or obligation of the state, and no203 |
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| 237 | 237 | | account owner or account contributor shall be entitled to any amounts except for those204 |
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| 238 | 238 | | amounts on deposit in or accrued to the account of such contributor.205 |
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| 239 | 239 | | (2) The trust fund shall continue in existence so long as it holds any funds belonging to206 |
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| 240 | 240 | | an account owner or otherwise has any obligations to any person or entity and until its207 |
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| 241 | 241 | | existence is terminated by law and remaining assets on deposit in the trust fund are208 |
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| 242 | 242 | | returned to account owners or transferred to the state in accordance with unclaimed209 |
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| 243 | 243 | | property laws.210 |
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| 244 | 244 | | (b)(1) The following three separate accounts are created within the trust fund:211 |
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| 245 | 245 | | (A) The administrative account;212 |
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| 246 | 246 | | (B) The endowment account; and213 |
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| 247 | 247 | | (C) The program account.214 |
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| 248 | 248 | | (2) The administrative account shall accept, deposit, and disburse funds for the purpose215 |
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| 249 | 249 | | of administering and marketing the program. The endowment account shall accept,216 |
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| 250 | 250 | | deposit, and disburse amounts received in connection with the sales of interests in the217 |
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| 251 | 251 | | trust fund or other contributions, other than amounts for the administrative account and218 |
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| 252 | 252 | | other than amounts received pursuant to a savings trust agreement. Amounts on deposit219 |
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| 253 | 253 | | in the endowment account may be applied as specified by the board for any purpose220 |
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| 254 | 254 | | H. B. 284 |
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| 255 | 255 | | - 9 - 25 LC 59 0055 |
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| 256 | 256 | | related to the program. The program account shall receive, invest, and disburse amounts221 |
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| 257 | 257 | | pursuant to savings trust agreements.222 |
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| 258 | 258 | | (c) The official location of the trust fund shall be the Office of the State Treasurer, and the223 |
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| 259 | 259 | | facilities of the Office of the State Treasurer shall be used and employed in the224 |
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| 260 | 260 | | administration of the fund, including without limitation the keeping of records, the225 |
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| 261 | 261 | | management of bank accounts and other investments, the transfer of funds, and the226 |
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| 262 | 262 | | safekeeping of securities evidencing investments. These functions may be administered227 |
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| 263 | 263 | | pursuant to a management agreement with a qualified entity or entities.228 |
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| 264 | 264 | | (d) Payments received by the board on behalf of beneficiaries from account contributors,229 |
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| 265 | 265 | | other payors, or from any other source, public or private, shall be placed in the trust fund,230 |
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| 266 | 266 | | and the board shall cause there to be maintained separate records and accounts for231 |
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| 267 | 267 | | individual beneficiaries as may be required by federal law.232 |
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| 268 | 268 | | (e) Account contributors shall be permitted only to contribute cash or any other form of233 |
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| 269 | 269 | | payment or contribution as is permitted by the board. The board shall cause the program234 |
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| 270 | 270 | | to maintain adequate safeguards against contributions in excess of what may be required235 |
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| 271 | 271 | | for qualified expenses. The trust fund, through the state treasurer, may receive and deposit236 |
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| 272 | 272 | | into the trust fund any gift of any nature, real or personal property, made by an individual237 |
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| 273 | 273 | | testamentary disposition, including without limitation any specific gift or bequest made by238 |
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| 274 | 274 | | will, trust, or other disposition to the extent permitted under the Internal Revenue Code239 |
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| 275 | 275 | | of 1986. The trust fund may receive amounts transferred under Article 5 of Chapter 5 of240 |
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| 276 | 276 | | Title 44, 'The Georgia Transfers to Minors Act'; under the Uniform Transfers to Minors241 |
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| 277 | 277 | | Act, Uniform Gift to Minors Act, or other substantially similar act of another state, subject242 |
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| 278 | 278 | | to the provisions of subsection (c) of Code Section 44-5-112; or from some other account243 |
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| 279 | 279 | | established for the benefit of a minor if the trust beneficiary of such account is identified244 |
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| 280 | 280 | | as the legal owner of the trust fund account upon attaining majority age.245 |
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| 281 | 281 | | (f) Earnings derived from investment of the contributions shall be considered to be held246 |
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| 282 | 282 | | in trust in the same manner as contributions, except as applied for purposes of the247 |
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| 283 | 283 | | H. B. 284 |
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| 284 | 284 | | - 10 - 25 LC 59 0055 |
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| 285 | 285 | | designated beneficiary and for purposes of maintaining and administering the program as248 |
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| 286 | 286 | | provided in this chapter. Amounts on deposit in an account owner's account shall be249 |
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| 287 | 287 | | available for administrative fees and expenses and penalties imposed by the board for the250 |
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| 288 | 288 | | plan as disclosed in the savings trust agreement.251 |
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| 289 | 289 | | (g) The assets of the trust fund shall be preserved, invested, and expended solely pursuant252 |
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| 290 | 290 | | to and for the purposes of this chapter and shall not be loaned or otherwise transferred or253 |
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| 291 | 291 | | used by the state for any other purpose.254 |
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| 292 | 292 | | 39-7-6.255 |
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| 293 | 293 | | The trust fund property and income shall be subject to taxation by the state only as256 |
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| 294 | 294 | | provided by Code Section 48-7-27 and shall not be subject to taxation by any of the state's257 |
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| 295 | 295 | | political subdivisions.258 |
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| 296 | 296 | | 39-7-7.259 |
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| 297 | 297 | | (a) The board shall have authority to establish a comprehensive investment plan for the260 |
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| 298 | 298 | | purposes of this chapter and to invest any funds of the trust fund through the state treasurer. 261 |
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| 299 | 299 | | The state treasurer shall invest the trust fund moneys pursuant to an investment policy262 |
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| 300 | 300 | | adopted by the board. Notwithstanding any state law to the contrary, the board, through263 |
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| 301 | 301 | | the state treasurer shall invest or cause to be invested amounts on deposit in the trust fund,264 |
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| 302 | 302 | | including the program account, in a manner reasonable and appropriate to achieve the265 |
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| 303 | 303 | | objectives of the plan, exercising the discretion and care of a prudent person in similar266 |
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| 304 | 304 | | circumstances with similar objectives. The board shall give due consideration to the risk267 |
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| 305 | 305 | | of, expected rate of return of, term or maturity of, diversification of total investments of,268 |
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| 306 | 306 | | liquidity of, and anticipated investments in and withdrawals from the trust fund.269 |
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| 307 | 307 | | (b) All contractors, vendors, or other service providers, including, but not limited to,270 |
|---|
| 308 | 308 | | financial organizations, investments, and investment options, shall be selected by271 |
|---|
| 309 | 309 | | competitive solicitation, unless otherwise directed by the board.272 |
|---|
| 310 | 310 | | H. B. 284 |
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| 311 | 311 | | - 11 - 25 LC 59 0055 |
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| 312 | 312 | | (c) All investments shall be marked clearly to indicate ownership by the plan and, to the273 |
|---|
| 313 | 313 | | extent possible, shall be registered in the name of the plan.274 |
|---|
| 314 | 314 | | (d) Subject to the terms, conditions, limitations, and restrictions set forth in this Code275 |
|---|
| 315 | 315 | | section, the board may sell, assign, transfer, and dispose of any of the securities and276 |
|---|
| 316 | 316 | | investments of the plan if the sale, assignment, or transfer has the majority approval of the277 |
|---|
| 317 | 317 | | entire board. The board may employ or contract with financial organizations, investment278 |
|---|
| 318 | 318 | | managers, evaluation services, or other such services as determined by the board to be279 |
|---|
| 319 | 319 | | necessary for the effective and efficient operation of the program.280 |
|---|
| 320 | 320 | | (e) Members and employees of the board shall be subject to the provisions of Chapter 10281 |
|---|
| 321 | 321 | | of Title 45, relating to codes of ethics and conflicts of interest.282 |
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| 322 | 322 | | (f) The board shall establish criteria for financial organizations, investment managers,283 |
|---|
| 323 | 323 | | mutual funds, or other such entities to act as contractors or consultants to the board. The284 |
|---|
| 324 | 324 | | board may contract, either directly or through such contractors or consultants, to provide285 |
|---|
| 325 | 325 | | such services as may be a part of the comprehensive investment plan or as may be deemed286 |
|---|
| 326 | 326 | | necessary or proper by the board, including without limitation providing consolidated287 |
|---|
| 327 | 327 | | billing, individual and collective record keeping and accounting, and asset purchase,288 |
|---|
| 328 | 328 | | control, and safekeeping.289 |
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| 329 | 329 | | (g) No account owner, account contributor, or beneficiary shall directly or indirectly direct290 |
|---|
| 330 | 330 | | the investment of any account except as may be permitted under applicable federal law.291 |
|---|
| 331 | 331 | | (h) The board may approve different investment plans and options to be offered to292 |
|---|
| 332 | 332 | | participants to the extent permitted under applicable federal law and consistent with the293 |
|---|
| 333 | 333 | | objectives of this chapter, and the board may require the assistance of investment294 |
|---|
| 334 | 334 | | counseling before participation in different options.295 |
|---|
| 335 | 335 | | (i) No account owner or designated beneficiary shall pledge any interest in the program296 |
|---|
| 336 | 336 | | or any portion thereof as security for a loan.297 |
|---|
| 337 | 337 | | H. B. 284 |
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| 338 | 338 | | - 12 - 25 LC 59 0055 |
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| 339 | 339 | | 39-7-8.298 |
|---|
| 340 | 340 | | (a) The board shall furnish, subject to reasonable administrative fees and charges, to each299 |
|---|
| 341 | 341 | | account owner an annual statement of the following:300 |
|---|
| 342 | 342 | | (1) The amount contributed under the savings trust agreement;301 |
|---|
| 343 | 343 | | (2) The annual earnings and accumulated earnings on the savings trust account; and302 |
|---|
| 344 | 344 | | (3) Any other terms and conditions that the board deems by rule are necessary or303 |
|---|
| 345 | 345 | | appropriate, including without limitation those necessary to conform the savings trust304 |
|---|
| 346 | 346 | | account with the requirements of applicable federal law.305 |
|---|
| 347 | 347 | | (b) The board shall furnish an additional statement complying with subsection (a) of this306 |
|---|
| 348 | 348 | | Code section to an account owner or beneficiary on written request. The board may charge307 |
|---|
| 349 | 349 | | a reasonable fee for each statement furnished under this subsection.308 |
|---|
| 350 | 350 | | (c) The board shall prepare or cause to be prepared an annual report setting forth in309 |
|---|
| 351 | 351 | | appropriate detail an accounting of the funds and a description of the financial condition310 |
|---|
| 352 | 352 | | of the plan at the close of each fiscal year. Such report shall be submitted to the Governor,311 |
|---|
| 353 | 353 | | the President of the Senate, and the Speaker of the House of Representatives. In addition,312 |
|---|
| 354 | 354 | | the board shall make the report available to account owners or account contributors of313 |
|---|
| 355 | 355 | | savings trust agreements. The accounts of the trust fund shall be subject to annual audits314 |
|---|
| 356 | 356 | | by the state auditor or his or her designee.315 |
|---|
| 357 | 357 | | 39-7-9.316 |
|---|
| 358 | 358 | | Notwithstanding any state law to the contrary, no moneys on deposit in any savings trust317 |
|---|
| 359 | 359 | | account shall be considered an asset of the parent, guardian, or child for purposes of318 |
|---|
| 360 | 360 | | determining an individual's eligibility for need based aid programs.319 |
|---|
| 361 | 361 | | H. B. 284 |
|---|
| 362 | 362 | | - 13 - 25 LC 59 0055 |
|---|
| 363 | 363 | | 39-7-10.320 |
|---|
| 364 | 364 | | (a) The provisions of Article 4 of Chapter 18 of Title 50 notwithstanding, the following321 |
|---|
| 365 | 365 | | records, or portions thereof, shall not constitute public records and shall not be open to322 |
|---|
| 366 | 366 | | inspection by the general public:323 |
|---|
| 367 | 367 | | (1) Completed savings trust account applications, executed savings trust account324 |
|---|
| 368 | 368 | | agreements, and savings trust account numbers;325 |
|---|
| 369 | 369 | | (2) All wiring or automated clearing house transfer of funds instructions;326 |
|---|
| 370 | 370 | | (3) Records of savings trust account transactions and savings trust account analysis327 |
|---|
| 371 | 371 | | statements received or prepared by or for the plan;328 |
|---|
| 372 | 372 | | (4) All bank account numbers in the possession of the plan and any record or document329 |
|---|
| 373 | 373 | | containing such numbers;330 |
|---|
| 374 | 374 | | (5) All proprietary computer software in the possession or under the control of the plan;331 |
|---|
| 375 | 375 | | and332 |
|---|
| 376 | 376 | | (6) All security codes and procedures related to physical, electronic, or other access to333 |
|---|
| 377 | 377 | | any savings trust account or the trust fund, its systems, and its software.334 |
|---|
| 378 | 378 | | (b) For a period from the date of creation of the record until the end of the calendar quarter335 |
|---|
| 379 | 379 | | in which the record is created, the following records, or portions thereof, of the trust fund336 |
|---|
| 380 | 380 | | shall not constitute public records and shall not be open to inspection by the general public:337 |
|---|
| 381 | 381 | | (1) Investment trade tickets; and338 |
|---|
| 382 | 382 | | (2) Bank statements.339 |
|---|
| 383 | 383 | | (c) The restrictions of subsections (a) and (b) of this Code section shall not apply to access:340 |
|---|
| 384 | 384 | | (1) Required by subpoena or other legal process of a court or administrative agency341 |
|---|
| 385 | 385 | | having competent jurisdiction in legal proceedings where the State of Georgia or the plan342 |
|---|
| 386 | 386 | | is a party;343 |
|---|
| 387 | 387 | | (2) In prosecutions or other court actions to which the State of Georgia or the plan is a344 |
|---|
| 388 | 388 | | party;345 |
|---|
| 389 | 389 | | (3) Given to federal or state regulatory or law enforcement agencies;346 |
|---|
| 390 | 390 | | H. B. 284 |
|---|
| 391 | 391 | | - 14 - 25 LC 59 0055 |
|---|
| 392 | 392 | | (4) Given to any person or entity in connection with a savings trust account to which347 |
|---|
| 393 | 393 | | such person or entity is the account owner or given to any person in connection with a348 |
|---|
| 394 | 394 | | savings trust account of which such person is the beneficiary; or349 |
|---|
| 395 | 395 | | (5) Given to the board or any member, employee, or contractor thereof for use and public350 |
|---|
| 396 | 396 | | disclosure in the ordinary performance of its duties pursuant to this chapter.351 |
|---|
| 397 | 397 | | 39-7-11.352 |
|---|
| 398 | 398 | | (a) All Georgia residents under the age of 18 years are eligible to be beneficiaries. Any353 |
|---|
| 399 | 399 | | individual enrolled in the plan shall be the beneficiary of a maximum of one savings trust354 |
|---|
| 400 | 400 | | account.355 |
|---|
| 401 | 401 | | (b) Georgia residents born on or after July 1, 2025, shall automatically be enrolled in the356 |
|---|
| 402 | 402 | | plan.357 |
|---|
| 403 | 403 | | (c) Georgia residents born before July 1, 2025, but who are otherwise under the age of 18358 |
|---|
| 404 | 404 | | years as of such date may request the Office of the State Treasurer to be enrolled in the359 |
|---|
| 405 | 405 | | plan. The board shall promulgate guidelines for the Office of the State Treasurer to certify360 |
|---|
| 406 | 406 | | such residents as eligible for the plan.361 |
|---|
| 407 | 407 | | (d) Upon reaching 18 years of age, savings trust account beneficiaries shall retain their362 |
|---|
| 408 | 408 | | interests in such accounts, including investment returns and interest earned after said363 |
|---|
| 409 | 409 | | beneficiaries have reached 18 years of age, so long as they remain residents of the State of364 |
|---|
| 410 | 410 | | Georgia.365 |
|---|
| 411 | 411 | | 39-7-12.366 |
|---|
| 412 | 412 | | (a) The General Assembly is authorized to contribute funds to each savings trust account367 |
|---|
| 413 | 413 | | from the undesignated surplus in the state treasury.368 |
|---|
| 414 | 414 | | (b) The General Assembly shall provide an initial contribution to each savings trust369 |
|---|
| 415 | 415 | | account in the amount of:370 |
|---|
| 416 | 416 | | (1) A minimum of $250.00; or371 |
|---|
| 417 | 417 | | H. B. 284 |
|---|
| 418 | 418 | | - 15 - 25 LC 59 0055 |
|---|
| 419 | 419 | | (2) A minimum of $1000.00 for a beneficiary whose family is receiving benefits from372 |
|---|
| 420 | 420 | | a federal assistance program, including but not limited to Medicaid, Temporary373 |
|---|
| 421 | 421 | | Assistance for Needy Families, or the Supplemental Nutrition Assistance Program.374 |
|---|
| 422 | 422 | | (c) The General Assembly shall provide recurring annual contributions to each savings375 |
|---|
| 423 | 423 | | trust account, until the account beneficiary reaches 18 years of age, in the amount of:376 |
|---|
| 424 | 424 | | (1) A minimum of $250.00; or377 |
|---|
| 425 | 425 | | (2) A minimum of $500.00 for a beneficiary whose family is receiving benefits from a378 |
|---|
| 426 | 426 | | federal assistance program, including but not limited to Medicaid, Temporary Assistance379 |
|---|
| 427 | 427 | | for Needy Families, or the Supplemental Nutrition Assistance Program."380 |
|---|
| 428 | 428 | | SECTION 2.381 |
|---|
| 429 | 429 | | All laws and parts of laws in conflict with this Act are repealed.382 |
|---|
| 430 | 430 | | H. B. 284 |
|---|
| 431 | 431 | | - 16 - |
|---|