KS
Kansas Senate Bill SB281

Kansas 2025-2026 Regular Session

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11 Session of 2025
22 SENATE BILL No. 281
33 By Committee on Ways and Means
44 2-27
55 AN ACT concerning the state treasurer; relating to tax-advantaged savings
66 programs; establishing the Kansas postsecondary education savings
77 account and Kansas ABLE savings account grant incentive program;
88 authorizing transfers from the state general fund for such program;
99 eliminating the low-income family postsecondary savings accounts
1010 incentive program; establishing the Kansas postsecondary education
1111 savings account and ABLE savings account grant incentive trust fund;
1212 amending K.S.A. 75-648 and 75-650 and repealing the existing
1313 sections.
1414 Be it enacted by the Legislature of the State of Kansas:
1515 Section 1. K.S.A. 75-648 is hereby amended to read as follows: 75-
1616 648. (a) (1) The Kansas postsecondary education savings program trust
1717 fund is hereby established in the state treasury. Such savings trust fund
1818 shall consist of moneys deposited by depositors in accordance with this
1919 act, moneys acquired from governmental and private sources and state
2020 general fund appropriations, if any, except as provided in subsections (b)
2121 and (c). All interest derived from the deposit and investment of moneys in
2222 such savings trust fund shall be credited to the fund. At the end of any
2323 fiscal year, all unexpended and unencumbered moneys in such savings
2424 trust fund shall remain therein and not be credited or transferred to the
2525 state general fund or to any other fund.
2626 (2) Except as provided in subsection subsections (b) and (c), the state
2727 treasurer shall credit all moneys received in connection with the Kansas
2828 postsecondary education savings program to the Kansas postsecondary
2929 education savings program trust fund.
3030 (b) (1) The Kansas postsecondary education savings expense fund is
3131 hereby established in the state treasury. The fund shall consist of moneys
3232 received from the Kansas postsecondary education savings program
3333 manager.
3434 (2) All expenses incurred by the treasurer in developing and
3535 administering the postsecondary education savings program shall be
3636 payable from the Kansas postsecondary education savings expense fund.
3737 (c) (1) The Kansas postsecondary education savings account and
3838 ABLE savings account grant incentive trust fund is hereby established. All
3939 interest derived from the deposit and investment of moneys in such trust
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7676 fund shall be credited to the fund. At the end of any fiscal year, all
7777 unexpended and unencumbered moneys in such trust fund shall remain
7878 therein and not be credited or transferred to the state general fund or to
7979 any other fund.
8080 (2) The state treasurer shall credit all moneys received in connection
8181 with the Kansas postsecondary education savings account and Kansas
8282 ABLE savings account grant incentive program to the Kansas
8383 postsecondary education savings account and ABLE savings account
8484 grant incentive trust fund.
8585 Sec. 2. K.S.A. 75-650 is hereby amended to read as follows: 75-650.
8686 (a) As used in this section:
8787 (1) "Federal poverty level" means the most recent poverty income
8888 guidelines published in the calendar year by the United States department
8989 of health and human services.
9090 (2) "Program" means the low-income family postsecondary savings
9191 accounts Kansas postsecondary education savings account and Kansas
9292 ABLE savings account grant incentive program established by this section.
9393 (3)(2) "Qualified individual or family" means an individual or family
9494 who resides within the state of Kansas and whose household income is
9595 positive and not more than 200% of the federal poverty level for the tax
9696 year prior to the year in which the application is submitted opens a
9797 qualifying account for a beneficiary.
9898 (4)(3) "Participant" means a qualified individual or family who has
9999 been approved for a matching grant under the program, has completed the
100100 financial education training required by subsection (e) and satisfies any
101101 other qualifications as determined by the treasurer.
102102 (5) "District" means a congressional district of the state of Kansas.
103103 (6) "Application" means an application for a matching grant under the
104104 program.
105105 (7) "Third-party contributor" means any individual or organization
106106 who contributes money to a family postsecondary savings account
107107 established pursuant to K.S.A. 75-640 et seq., and amendments thereto,
108108 other than the account owner who established such family postsecondary
109109 savings account for the benefit of the participant.
110110 (8)(4) "Qualifying account" means a Kansas-sponsored
111111 postsecondary education savings program account pursuant to K.S.A. 75-
112112 640 et seq., and amendments thereto, or a Kansas ABLE savings program
113113 account pursuant to K.S.A. 75-651 et seq., and amendments thereto.
114114 (5) Words and phrases have the meanings provided by K.S.A. 75-643,
115115 and amendments thereto, for the Kansas postsecondary education savings
116116 program and K.S.A. 75-652, and amendments thereto, for the Kansas
117117 ABLE savings program unless otherwise provided by this section.
118118 (b) There is hereby established the low-income family postsecondary
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162162 savings accounts Kansas postsecondary education savings account and
163163 Kansas ABLE savings account grant incentive program. The purpose of
164164 the program is to encourage the establishment of family postsecondary
165165 savings accounts pursuant to K.S.A. 75-640 a Kansas postsecondary
166166 education savings account pursuant to K.S.A. 75-640 et seq., and
167167 amendments thereto, or a Kansas ABLE savings account pursuant to
168168 K.S.A. 75-651 et seq., and amendments thereto, by qualified individuals
169169 and families.
170170 (c) The treasurer shall:
171171 (1) Implement and administer the program;
172172 (2) develop marketing plans and promotional material for the
173173 program;
174174 (3) develop any required financial training for participation in the
175175 program;
176176 (4) prescribe the procedure for, and requirements relating to, the
177177 submission and approval of grant applications;
178178 (4)(5) do all things necessary and proper to carry out the purposes of
179179 this act; and
180180 (5)(6) adopt any rules and regulations and policies deemed necessary
181181 for the implementation and administration of the program.
182182 (d) Grant applications shall be submitted to the treasurer in the
183183 manner and form required by the treasurer. Applications shall be
184184 accompanied by any information deemed necessary by the treasurer.
185185 Applications must be submitted each year using the applicant's household
186186 income from the previous tax year.
187187 (e) Beginning in calendar year 2009, the treasurer may approve no
188188 more than 300 applications from a single district. If 300 applications from
189189 residents of a district are not approved in calendar year 2009 or any year
190190 thereafter, the treasurer may approve additional applications submitted by
191191 residents of the remaining districts up to the program total of 1,200
192192 applications per year. Applications shall be approved on a first come, first
193193 served basis. The treasurer shall provide written notice, to an applicant, of
194194 the approval or nonapproval of such person's application.
195195 (f) The amount of contributions made to an account by an account
196196 owner who establishes a family postsecondary savings account for the
197197 benefit of a participant pursuant to K.S.A. 75-640 et seq., and amendments
198198 thereto, shall be matched by the state on a dollar-for-dollar basis if the
199199 account owner contributes at least $100 to a family postsecondary
200200 education savings account for the benefit of the participant during the
201201 calendar year for which the application has been approved. The aggregate
202202 of all matching amounts for any family postsecondary savings account
203203 shall not exceed $600 in any calendar year. All contributions by a third-
204204 party contributor shall be deposited in the matching grant account for the
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248248 participant established by the treasurer or another similar account for
249249 which the withdrawals are restricted as required by subsection (h).
250250 (g)(e) Grants awarded pursuant to this section shall not exceed $100
251251 per participant and shall be awarded only to qualified individuals who
252252 have:
253253 (1) A Kansas-sponsored postsecondary education savings account
254254 pursuant to K.S.A. 75-640 et seq., and amendments thereto, or a Kansas
255255 ABLE savings account pursuant to K.S.A. 75-651 et seq., and amendments
256256 thereto; and
257257 (2) completed a financial education training program developed by
258258 the treasurer.
259259 (f) Between January 1 and January 31 ofDuring each state fiscal year,
260260 the director of accounts and reports shall transfer from the state general
261261 fund to the Kansas postsecondary education savings program account and
262262 ABLE savings account grant incentive trust fund the amount, as certified
263263 by the treasurer, necessary to meet the matching grant obligations under
264264 subsection (f) (e) for the preceding calendar current fiscal year, except that
265265 the amount transferred from the state general fund to the Kansas
266266 postsecondary education savings program such trust fund shall not exceed
267267 the maximum amount specified by appropriation act for such purpose
268268 $200,000 for that state fiscal year. On or before January 31 of each year,
269269 The treasurer shall transfer from the Kansas postsecondary education
270270 savings program account and ABLE savings account grant incentive trust
271271 fund to the each qualifying account of each participant the amount
272272 determined by the treasurer to meet the matching grant obligation due to
273273 such participant account under subsection (f) (e) for the preceding
274274 calendar current fiscal year.
275275 (h) The treasurer shall ensure that all withdrawals of matching funds
276276 are used for qualified withdrawals under K.S.A. 75-640 et seq., and
277277 amendments thereto.
278278 (i)(g) The treasurer shall not be required to approve any withdrawals
279279 under the low-income family postsecondary savings accounts incentive
280280 program as in existence prior to July 1, 2025. The treasurer may adopt
281281 rules and regulations or policies deemed necessary by the treasurer to
282282 administer any accounts opened pursuant to such low-income family
283283 postsecondary savings accounts incentive program.
284284 (h) The treasurer shall prepare and submit to the governor and the
285285 legislature a report on the program on or before January 31 of each year.
286286 Such report shall include the number of accounts opened grants awarded
287287 under the program, the amount of moneys contributed to such accounts by
288288 the participants, the amount of matching moneys transferred by the
289289 treasurer pursuant to subsection (g), the average income of the
290290 participants, the nature of any financial education training program
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334334 provided to participants, an analysis of the success of the program in
335335 meeting the purpose of the program and any other information deemed
336336 appropriate by the treasurer.
337337 (j)(i) The provisions of this section shall be a part of and
338338 supplemental to the Kansas postsecondary education savings program and
339339 the Kansas ABLE savings program.
340340 Sec. 3. K.S.A. 75-648 and 75-650 are hereby repealed.
341341 Sec. 4. This act shall take effect and be in force from and after its
342342 publication in the Kansas register.
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