DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 487 Re-Reengrossed 2018 Regular Session Zeringue
Abstract: Creates the START K12 Program for education savings accounts for tuition expenses at
elementary and secondary schools.
START and START K12 Programs, generally
Present law creates the La. Student Tuition Assistance and Revenue Trust (START) Program, an
education savings program for certain expenses associated with enrolling in an institution of
postsecondary education. Provides for earnings enhancements (a "state match") on deposits between
2% and 14% annually; such rate depends on the account category and the account owner's income.
Also exempts a portion of annual deposits from an account owner's state tax table income (up to
$2,400 for single filers and $4,800 for joint filers, per account). Provides for administration by the
La. Tuition Trust Authority (LATTA). Proposed law retains present law.
Proposed law creates the La. Student Tuition Assistance and Revenue Trust Kindergarten Through
Grade Twelve (START K12) Program, an education savings program that is similar to the START
program except that it is for certain expenses associated with enrolling in grades kindergarten
through 12. Defines such expenses as tuition in connection with enrollment or attendance at a public
or approved nonpublic elementary or secondary school in La., limited to grades K-12. Limits
disbursements of such expenses to a maximum of $10,000 per tax year, per beneficiary. Provides
for a state match at the same rates applicable to the START Program and for administration by
LATTA. Does not provide for exemption of a portion of annual deposits from an account owner's
state tax table income. (Legislation regarding tax exemptions during a Regular Session during an
even-numbered year is prohibited by present constitution.) Prohibits a transfer or rollover from a
START account to a START K12 account.
Louisiana Education Tuition and Savings Plan and Fund
Present law establishes in the state treasury as a special permanent fund the La. Education Tuition
and Savings Fund, known as the "Tuition and Savings Fund". Provides for separate accounts for the
START Program and for another education savings program authorized by present law. Establishes
the "Savings Enhancement Fund" as a special permanent sub-account within the START Program
account and provides, as budgeted by LATTA, that the legislature shall annually appropriate state
general funds to be deposited by the treasurer in this fund. Provides that this fund shall be used for
earnings enhancements for START accounts. Provides that the legislature shall make yearly
appropriations from the respective account and sub-account, if applicable, to the LATTA for present
law purposes. Proposed law provides that the START Program account shall also be for the START K12 program,
that the Savings Enhancement Fund shall also be used to fund earnings enhancements for the
START K12 program, and that appropriations to LATTA shall also be made for purposes of the
START K12 program.
Abandoned property
Present law provides that property is presumed abandoned if it is unclaimed by the apparent owner
during the time set forth in present law for the particular property. Proposed law adds that unclaimed
funds in a START K12 account during any five-year period subsequent to the beneficiary's 20th
birthday shall be presumed abandoned.
Payroll withholdings
Present law authorizes any employee of the state or a political subdivision in the state to authorize
his employer to withhold from his salary amounts for deposit into a START account. Proposed law
also grants such employees this authority relative to salary withholdings for deposits to START K12
accounts.
Public records
Present law provides a public records exception for all LATTA records indicating the identity of
owners and beneficiaries of START education savings accounts and the amounts used or refunded
under an account owner's agreement. Proposed law provides an additional public records exception
for all such records relative to START K12 accounts.
Dept. of Revenue records
Present law provides that except as otherwise provided by present law, the records and files of the
secretary of the Dept. of Revenue are confidential and privileged. Present law allows the department
to furnish a taxpayer's reported federal adjusted gross income to the La. Office of Student Financial
Assistance (LOSFA) for purposes of administering the START program and the Taylor Opportunity
Program for Students (TOPS). Proposed law also allows this for the START K12 program.
Transitional provision
Proposed law allows funds deposited prior to Jan. 1, 2018, to a START account to be disbursed in
2018 to pay tuition at an elementary or secondary school. Provides that any such disbursement shall
not include earnings enhancements or interest thereon. Limits the total amount of disbursements
with respect to a beneficiary to $10,000.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 9:154(A)(15), R.S. 17:3129.4(C), R.S. 44:4.1(B)(9), and R.S. 47:1508(B)(17); Adds
R.S. 17:3100.1-3100.10 and R.S. 42:456.2) Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the
reengrossed bill:
1. Add transitional provision allowing funds deposited prior to Jan. 1, 2018, to a START
account to be disbursed in 2018 for K-12 tuition; limited to $10,000 per beneficiary.
2. Add exception to the confidentiality of Dept. of Revenue records for purposes of the
START K12 program.
3. Make proposed law effective upon governor's signature.