SLS 20RS-130 ORIGINAL
2020 Regular Session
SENATE BILL NO. 78
BY SENATOR FOIL
STUDENTS. Provides relative to disbursement of funds from START savings accounts.
(8/1/20)
1 AN ACT
2 To enact R.S. 17:3095(I), relative to the Louisiana Student Tuition Assistance and Revenue
3 Trust Program; to authorize disbursement of funds from program accounts to pay
4 certain elementary and secondary education costs; to provide for annual
5 disbursement limitations; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 17:3095(I) is hereby enacted to read as follows:
8 ยง3095. Education savings accounts; types, use, limitations, and disclosures
9 * * *
10 I. Funds deposited in an education savings account established in
11 accordance with this Chapter may be disbursed to pay tuition, as defined in R.S.
12 17:3100.2, at an elementary or secondary school, as defined in R.S. 17:3100.2.
13 These disbursements shall not include any earnings enhancements or interest
14 thereon that may have accrued to the account. The total amount of
15 disbursements from all such accounts established for a beneficiary shall not
16 exceed ten thousand dollars annually.
17 Section 2. This Act shall become effective on August 1, 2020; if vetoed by the
Page 1 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 78
SLS 20RS-130 ORIGINAL
1 governor and subsequently approved by the legislature, this Act shall become effective on
2 August 1, 2020, or on the day following such approval by the legislature, whichever is later.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Cheryl Serrett.
DIGEST
SB 78 Original 2020 Regular Session Foil
Present law provides for two education savings programs that are qualified tuition programs
as defined in Section 529 of the federal Internal Revenue Code:
(1)The La. Student Tuition Assistance and Revenue Trust (START) Program (created
in 1995) is for certain expenses associated with enrolling in an institution of
postsecondary education. Present law provides for earnings enhancements (a "state
match") annually, the rate of which depends on the account category and the account
owner's income. Also exempts a portion of annual deposits from the account owner's
state tax table income (up to $2,400 for single filers and $4,800 for joint filers, per
account).
(2)The La. Student Tuition Assistance and Revenue Trust Kindergarten Through Grade
Twelve (START K12) Program (created in 2018) 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.
Limits disbursements of such expenses to a maximum of $10,000 per tax year, per
beneficiary. Does not provide a state match or for exemption of a portion of annual
deposits from an account owner's state tax table income.
Present law prohibits a transfer or rollover from a START account to a START K12 account.
However, as a transitional provision with respect to the then-newly created START K12
program, in 2018, funds deposited prior to Jan. 1, 2018 to a START account were allowed
to be disbursed in 2018 to pay tuition at an elementary or secondary school. Any such
disbursement did not include earnings enhancements or interest thereon and the total amount
of such disbursements with respect to a beneficiary was limited to $10,000.
Proposed law would allow disbursement of funds from a START account to pay tuition at
an elementary or secondary school as defined by START K12. Disbursements shall not
include earnings enhancements or interest thereon and shall be limited with respect to a
beneficiary to $10,000 a year.
Effective August 1, 2020.
(Adds R.S. 17:3095(I))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.