Session of 2025
SENATE BILL No. 281
By Committee on Ways and Means
2-27
AN ACT concerning the state treasurer; relating to tax-advantaged savings
programs; establishing the Kansas postsecondary education savings
account and Kansas ABLE savings account grant incentive program;
authorizing transfers from the state general fund for such program;
eliminating the low-income family postsecondary savings accounts
incentive program; establishing the Kansas postsecondary education
savings account and ABLE savings account grant incentive trust fund;
amending K.S.A. 75-648 and 75-650 and repealing the existing
sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 75-648 is hereby amended to read as follows: 75-
648. (a) (1) The Kansas postsecondary education savings program trust
fund is hereby established in the state treasury. Such savings trust fund
shall consist of moneys deposited by depositors in accordance with this
act, moneys acquired from governmental and private sources and state
general fund appropriations, if any, except as provided in subsections (b)
and (c). All interest derived from the deposit and investment of moneys in
such savings trust fund shall be credited to the fund. At the end of any
fiscal year, all unexpended and unencumbered moneys in such savings
trust fund shall remain therein and not be credited or transferred to the
state general fund or to any other fund.
(2) Except as provided in subsection subsections (b) and (c), the state
treasurer shall credit all moneys received in connection with the Kansas
postsecondary education savings program to the Kansas postsecondary
education savings program trust fund.
(b) (1) The Kansas postsecondary education savings expense fund is
hereby established in the state treasury. The fund shall consist of moneys
received from the Kansas postsecondary education savings program
manager.
(2) All expenses incurred by the treasurer in developing and
administering the postsecondary education savings program shall be
payable from the Kansas postsecondary education savings expense fund.
(c) (1) The Kansas postsecondary education savings account and
ABLE savings account grant incentive trust fund is hereby established. All
interest derived from the deposit and investment of moneys in such trust
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36 SB 281 2
fund shall be credited to the fund. At the end of any fiscal year, all
unexpended and unencumbered moneys in such trust fund shall remain
therein and not be credited or transferred to the state general fund or to
any other fund.
(2) The state treasurer shall credit all moneys received in connection
with the Kansas postsecondary education savings account and Kansas
ABLE savings account grant incentive program to the Kansas
postsecondary education savings account and ABLE savings account
grant incentive trust fund.
Sec. 2. K.S.A. 75-650 is hereby amended to read as follows: 75-650.
(a) As used in this section:
(1) "Federal poverty level" means the most recent poverty income
guidelines published in the calendar year by the United States department
of health and human services.
(2) "Program" means the low-income family postsecondary savings
accounts Kansas postsecondary education savings account and Kansas
ABLE savings account grant incentive program established by this section.
(3)(2) "Qualified individual or family" means an individual or family
who resides within the state of Kansas and whose household income is
positive and not more than 200% of the federal poverty level for the tax
year prior to the year in which the application is submitted opens a
qualifying account for a beneficiary.
(4)(3) "Participant" means a qualified individual or family who has
been approved for a matching grant under the program, has completed the
financial education training required by subsection (e) and satisfies any
other qualifications as determined by the treasurer.
(5) "District" means a congressional district of the state of Kansas.
(6) "Application" means an application for a matching grant under the
program.
(7) "Third-party contributor" means any individual or organization
who contributes money to a family postsecondary savings account
established pursuant to K.S.A. 75-640 et seq., and amendments thereto,
other than the account owner who established such family postsecondary
savings account for the benefit of the participant.
(8)(4) "Qualifying account" means a Kansas-sponsored
postsecondary education savings program account pursuant to K.S.A. 75-
640 et seq., and amendments thereto, or a Kansas ABLE savings program
account pursuant to K.S.A. 75-651 et seq., and amendments thereto.
(5) Words and phrases have the meanings provided by K.S.A. 75-643,
and amendments thereto, for the Kansas postsecondary education savings
program and K.S.A. 75-652, and amendments thereto, for the Kansas
ABLE savings program unless otherwise provided by this section.
(b) There is hereby established the low-income family postsecondary
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 SB 281 3
savings accounts Kansas postsecondary education savings account and
Kansas ABLE savings account grant incentive program. The purpose of
the program is to encourage the establishment of family postsecondary
savings accounts pursuant to K.S.A. 75-640 a Kansas postsecondary
education savings account pursuant to K.S.A. 75-640 et seq., and
amendments thereto, or a Kansas ABLE savings account pursuant to
K.S.A. 75-651 et seq., and amendments thereto, by qualified individuals
and families.
(c) The treasurer shall:
(1) Implement and administer the program;
(2) develop marketing plans and promotional material for the
program;
(3) develop any required financial training for participation in the
program;
(4) prescribe the procedure for, and requirements relating to, the
submission and approval of grant applications;
(4)(5) do all things necessary and proper to carry out the purposes of
this act; and
(5)(6) adopt any rules and regulations and policies deemed necessary
for the implementation and administration of the program.
(d) Grant applications shall be submitted to the treasurer in the
manner and form required by the treasurer. Applications shall be
accompanied by any information deemed necessary by the treasurer.
Applications must be submitted each year using the applicant's household
income from the previous tax year.
(e) Beginning in calendar year 2009, the treasurer may approve no
more than 300 applications from a single district. If 300 applications from
residents of a district are not approved in calendar year 2009 or any year
thereafter, the treasurer may approve additional applications submitted by
residents of the remaining districts up to the program total of 1,200
applications per year. Applications shall be approved on a first come, first
served basis. The treasurer shall provide written notice, to an applicant, of
the approval or nonapproval of such person's application.
(f) The amount of contributions made to an account by an account
owner who establishes a family postsecondary savings account for the
benefit of a participant pursuant to K.S.A. 75-640 et seq., and amendments
thereto, shall be matched by the state on a dollar-for-dollar basis if the
account owner contributes at least $100 to a family postsecondary
education savings account for the benefit of the participant during the
calendar year for which the application has been approved. The aggregate
of all matching amounts for any family postsecondary savings account
shall not exceed $600 in any calendar year. All contributions by a third-
party contributor shall be deposited in the matching grant account for the
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 SB 281 4
participant established by the treasurer or another similar account for
which the withdrawals are restricted as required by subsection (h).
(g)(e) Grants awarded pursuant to this section shall not exceed $100
per participant and shall be awarded only to qualified individuals who
have:
(1) A Kansas-sponsored postsecondary education savings account
pursuant to K.S.A. 75-640 et seq., and amendments thereto, or a Kansas
ABLE savings account pursuant to K.S.A. 75-651 et seq., and amendments
thereto; and
(2) completed a financial education training program developed by
the treasurer.
(f) Between January 1 and January 31 ofDuring each state fiscal year,
the director of accounts and reports shall transfer from the state general
fund to the Kansas postsecondary education savings program account and
ABLE savings account grant incentive trust fund the amount, as certified
by the treasurer, necessary to meet the matching grant obligations under
subsection (f) (e) for the preceding calendar current fiscal year, except that
the amount transferred from the state general fund to the Kansas
postsecondary education savings program such trust fund shall not exceed
the maximum amount specified by appropriation act for such purpose
$200,000 for that state fiscal year. On or before January 31 of each year,
The treasurer shall transfer from the Kansas postsecondary education
savings program account and ABLE savings account grant incentive trust
fund to the each qualifying account of each participant the amount
determined by the treasurer to meet the matching grant obligation due to
such participant account under subsection (f) (e) for the preceding
calendar current fiscal year.
(h) The treasurer shall ensure that all withdrawals of matching funds
are used for qualified withdrawals under K.S.A. 75-640 et seq., and
amendments thereto.
(i)(g) The treasurer shall not be required to approve any withdrawals
under the low-income family postsecondary savings accounts incentive
program as in existence prior to July 1, 2025. The treasurer may adopt
rules and regulations or policies deemed necessary by the treasurer to
administer any accounts opened pursuant to such low-income family
postsecondary savings accounts incentive program.
(h) The treasurer shall prepare and submit to the governor and the
legislature a report on the program on or before January 31 of each year.
Such report shall include the number of accounts opened grants awarded
under the program, the amount of moneys contributed to such accounts by
the participants, the amount of matching moneys transferred by the
treasurer pursuant to subsection (g), the average income of the
participants, the nature of any financial education training program
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 SB 281 5
provided to participants, an analysis of the success of the program in
meeting the purpose of the program and any other information deemed
appropriate by the treasurer.
(j)(i) The provisions of this section shall be a part of and
supplemental to the Kansas postsecondary education savings program and
the Kansas ABLE savings program.
Sec. 3. K.S.A. 75-648 and 75-650 are hereby repealed.
Sec. 4. This act shall take effect and be in force from and after its
publication in the Kansas register.
1
2
3
4
5
6
7
8
9