GREEN SHEET REDIGEST
HB 650 2018 Regular Session Foil
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
STUDENT/TUITION: Creates a program for education savings accounts for tuition
expenses for elementary and secondary schools.
DIGEST
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 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 kindergarten through 12. Limits disbursements of such expenses to a maximum
of $10,000 per tax year, per beneficiary. Provides for administration by LATTA. Does not
provide a state match or 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.
Proposed law clarifies that the START K-12 program is necessitated due to changes in
federal tax law authorizing qualified tuition programs as defined in Section 529 of the federal
Internal Revenue Code for kindergarten through grade 12 education. Declares that the
enhanced earnings and income tax deduction that apply to the START program created under
Chapter 22-B of Title 17 of the Louisiana Revised Statutes of 1950 do not apply to the
START K-12 Program.
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. Provides that the legislature shall make yearly appropriations from the
respective account to the LATTA for present law purposes.
Proposed law provides that the START Program account shall also be 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.
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Prepared by Martha Hess. 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 purposes of determining a beneficiary's eligibility for participation in the
START K12 program.
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 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 Education to the
original bill:
1. Remove proposed law providing for a "state match" (earnings enhancements) for
START K12 program accounts.
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
determining eligibility for participation in START K12 program.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the re-
reengrossed bill
1. Adds language declaring proposed law is necessitated due to changes in federal
tax law authorizing qualified tuition programs as defined in Section 529 of the
federal Internal Revenue Code for kindergarten through grade 12 education.
2. Declares that the enhanced earnings and income tax deduction that apply to the
START program created under Chapter 22-B of Title 17 of the Louisiana
Revised Statutes of 1950 do not apply to the START K-12 Program.
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Prepared by Martha Hess. 3. Deletes 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.
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Prepared by Martha Hess.