Maryland 2023 Regular Session

Maryland House Bill HB1290 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb1290
6	6
7	7	HOUSE BILL 1290
8	8	F2, P1 EMERGENCY BILL 3lr3034
9	9	CF SB 959
10	10	By: Delegate Forbes
11	11	Introduced and read first time: February 26, 2023
12	12	Assigned to: Rules and Executive Nominations
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Higher Education – Maryland 529 Program – Reform 2
19	19
20	20	FOR the purpose of abolishing and repealing the Maryland 529 Board; specifying that the 3
21	21	State Treasurer is the successor to the Maryland 529 Board; transferring to the 4
22	22	Office of the State Treasurer the responsibility for administering the Maryland 529 5
23	23	Program, including the Maryland Prepaid College Trust, the Maryland College 6
24	24	Investment Plan, the Maryland Broker–Dealer College Investment Plan, and the 7
25	25	Maryland ABLE Program; authorizing the State Treasurer to take certain actions in 8
26	26	administering the Maryland 529 Program; requiring the State Treasurer to take 9
27	27	certain actions in administering the Maryland 529 Program; prohibiting the State 10
28	28	Treasurer from taking certain actions in administering the Maryland Prepaid 11
29	29	College Trust; establishing the Workgroup on the Maryland 529 Prepaid College 12
30	30	Trust Program; requiring the Workgroup to identify certain policies, procedures, and 13
31	31	practices and to develop recommendations relating to administering the Maryland 14
32	32	529 Program; providing for the transfer of certain services, appropriations, funding, 15
33	33	grants, property, records, fixtures, credits, assets, liabilities, obligations, rights, and 16
34	34	privileges to the Office of the State Treasurer; providing that employees transferred 17
35	35	to the Office of the State Treasurer as a result of this Act shall be transferred without 18
36	36	diminution of certain rights, benefits, or employment or retirement status; providing 19
37	37	for the continuity of certain transactions affected by or flowing from this Act; 20
38	38	providing for the continuity of certain laws, rules and regulations, standards and 21
39	39	guidelines, policies, orders, and other directives, permits and license applications, 22
40	40	forms, plans, memberships, contracts, agreements, property, investigations, and 23
41	41	administrative and judicial responsibilities; providing for the appropriate 24
42	42	transitional provisions relating to the continuity of certain boards and other units; 25
43	43	and generally relating to Maryland 529 Program reform. 26
44	44
45	45	BY repealing and reenacting, with amendments, 27
46	46	Article – Education 28
47	47	Section 18–1901, 18–1902.1, 18–1903 through 18–1905, 18–1905.1, 18–1906, 29
48	48	18–1906.1, 18–1907 through 18–1911, 18–1914, 18–1916, 18–19A–01 through 30 2 HOUSE BILL 1290
49	49
50	50
51	51	18–19A–03, 18–19A–04.1, 18–19A–05, 18–19A–05.1, 18–19A–07, 18–19B–01 1
52	52	through 18–19B–06, 18–19B–08, 18–19C–01 through 18–19C–03, 18–19C–05, 2
53	53	18–19C–06, 18–19C–08, and 18–19C–09 3
54	54	Annotated Code of Maryland 4
55	55	(2022 Replacement Volume) 5
56	56
57	57	BY repealing and reenacting, without amendments, 6
58	58	Article – Education 7
59	59	Section 18–1902, 18–1912, 18–1913, 18–1915, 18–19A–04, 18–19A–06, 8
60	60	18–19A–06.1, 18–19B–07, 18–19C–04, 18–19C–07, and 18–19C–10 9
61	61	Annotated Code of Maryland 10
62	62	(2022 Replacement Volume) 11
63	63
64	64	BY repealing and reenacting, with amendments, 12
65	65	Article – State Finance and Procurement 13
66	66	Section 11–203(f) 14
67	67	Annotated Code of Maryland 15
68	68	(2021 Replacement Volume and 2022 Supplement) 16
69	69
70	70	BY repealing and reenacting, with amendments, 17
71	71	Article – State Government 18
72	72	Section 9–803(a)(10) and (11) 19
73	73	Annotated Code of Maryland 20
74	74	(2021 Replacement Volume and 2022 Supplement) 21
75	75
76	76	BY adding to 22
77	77	Article – State Government 23
78	78	Section 9–803(a)(11) 24
79	79	Annotated Code of Maryland 25
80	80	(2021 Replacement Volume and 2022 Supplement) 26
81	81
82	82	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 27
83	83	That the Laws of Maryland read as follows: 28
84	84
85	85	Article – Education 29
86	86
87	87	18–1901. 30
88	88
89	89	(a) In this subtitle the following words have the meanings indicated. 31
90	90
91	91	(b) “ABLE account holder” means an individual who has established an account 32
92	92	described under § 529A(e) of the Internal Revenue Code and is the designated beneficiary 33
93	93	of the account. 34
94	94
95	95	(c) “Account holder” means an individual who: 35
96	96	HOUSE BILL 1290 3
97	97
98	98
99	99	(1) Makes or undertakes the obligation to make advance payments of 1
100	100	qualified higher education expenses as provided under a prepaid contract; and 2
101	101
102	102	(2) Except as provided in § 18–1909(b) of this subtitle, is a resident of 3
103	103	Maryland or of the District of Columbia at the time that the account holder enters into a 4
104	104	prepaid contract. 5
105	105
106	106	(d) [“Board” means the Maryland 529 Board. 6
107	107
108	108	(e)] “Broker–Dealer Plan” means the Maryland Broker –Dealer College 7
109	109	Investment Plan established under Subtitle 19B of this title. 8
110	110
111	111	[(f)] (E) “Current prepaid contract obligations” means the scheduled payments 9
112	112	due for the next fiscal year under existing prepaid contracts. 10
113	113
114	114	[(g)] (F) “Eligible institution of higher education” means an institution of higher 11
115	115	education that: 12
116	116
117	117	(1) Offers an associate, bachelor, or graduate degree program; and 13
118	118
119	119	(2) Is eligible to participate in federal financial aid programs. 14
120	120
121	121	[(h)] (G) “Market value of program assets” means the amount of cash and cash 15
122	122	equivalents held by the Trust plus the fair market value of other assets of the Trust. 16
123	123
124	124	[(i)] (H) “Maryland ABLE Program” means the Maryland Achieving a Better 17
125	125	Life Experience Program established under Subtitle 19C of this title. 18
126	126
127	127	[(j)] (I) “Plan” means the Maryland Senator Edward J. Kasemeyer College 19
128	128	Investment Plan established under Subtitle 19A of this title. 20
129	129
130	130	[(k)] (J) “Prepaid contract” means a contract between the [Board] STATE 21
131	131	TREASURER and an account holder under the provisions of this subtitle for the advance 22
132	132	payment of qualified higher education expenses by the account holder for a qualified 23
133	133	beneficiary to attend an eligible institution of higher education, if the qualified beneficiary 24
134	134	is admitted to the institution. 25
135	135
136	136	[(l)] (K) “Program” means Maryland 529. 26
137	137
138	138	[(m)] (L) “Qualified beneficiary” means an individual who: 27
139	139
140	140	(1) Is eligible to apply advance payments of qualified higher education 28
141	141	expenses to undergraduate or graduate qualified higher education expenses at an eligible 29
142	142	institution of higher education under the provisions of this subtitle; and 30
143	143	4 HOUSE BILL 1290
144	144
145	145
146	146	(2) Except as provided in § 18–1909(b) of this subtitle, is a resident of the 1
147	147	State or of the District of Columbia at the time that the account holder enters into a prepaid 2
148	148	contract. 3
149	149
150	150	[(n)] (M) “Qualified higher education expenses” has the meaning stated in § 529 4
151	151	of the Internal Revenue Code. 5
152	152
153	153	[(o)] (N) “Qualified state tuition program” has the meaning stated in § 529 of the 6
154	154	Internal Revenue Code. 7
155	155
156	156	[(p)] (O) “Trust” means the Maryland Senator Edward J. Kasemeyer Prepaid 8
157	157	College Trust established under this subtitle. 9
158	158
159	159	[(q)] (P) (1) “Tuition” means the actual tuition and mandatory fees assessed 10
160	160	to all students by an eligible institution of higher education as a condition of enrollment at 11
161	161	the institution. 12
162	162
163	163	(2) “Tuition” does not include any fee that is assessed by the institution for 13
164	164	a particular course taken, year of enrollment, academic status, course of study, residency 14
165	165	status, or any other distinguishing factor used by the institution to determine a specific fee. 15
166	166
167	167	18–1902. 16
168	168
169	169	It is the intent of the General Assembly to enhance the accessibility and affordability 17
170	170	of higher education for all citizens of the State and for all citizens of the District of Columbia 18
171	171	by establishing a method to provide for the prepayment of tuition at eligible institutions of 19
172	172	higher education. 20
173	173
174	174	18–1902.1. 21
175	175
176	176	(a) There is a Program entitled Maryland 529. 22
177	177
178	178	(b) The purpose of the Program is to provide for the administration by the [Board] 23
179	179	STATE TREASURER of the Maryland Senator Edward J. Kasemeyer Prepaid College 24
180	180	Trust, the Maryland Senator Edward J. Kasemeyer College Investment Plan, the Maryland 25
181	181	Broker–Dealer College Investment Plan, and the Maryland ABLE Program. 26
182	182
183	183	18–1903. 27
184	184
185	185	(a) There is a Maryland Senator Edward J. Kasemeyer Prepaid College Trust. 28
186	186
187	187	(b) The purpose of the Trust is to provide: 29
188	188
189	189	(1) A means for payment of the cost of tuition in advance of enrollment at 30
190	190	an eligible institution of higher education; and 31
191	191	HOUSE BILL 1290 5
192	192
193	193
194	194	(2) An assurance to a beneficiary who enrolls at an eligible institution of 1
195	195	higher education that the [Board] STATE TREASURER shall make every effort to invest 2
196	196	the advance payments so that the prepaid contract will cover the average in–State tuition 3
197	197	costs at public institutions of higher education in the State at the time that the benefits are 4
198	198	exercised. 5
199	199
200	200	(c) The [Board] STATE TREASURER shall administer the Trust in compliance 6
201	201	with Internal Revenue Service standards for qualified State tuition programs. 7
202	202
203	203	(d) The funds of the Trust consist of: 8
204	204
205	205	(1) Payments received from prepaid contracts made under the provisions 9
206	206	of this subtitle; 10
207	207
208	208	(2) Bequests, endowments, or funds from any other available private 11
209	209	source; 12
210	210
211	211	(3) Interest and income earned from the investments of the Trust; and 13
212	212
213	213	(4) Federal, State, or local funds, or funds from any other available public 14
214	214	source. 15
215	215
216	216	(e) Money remaining in the Trust at the end of the fiscal year shall remain in the 16
217	217	Trust and may not revert to the General Fund of the State. 17
218	218
219	219	(f) Money of the Trust may not be considered money of the State and may not be 18
220	220	deposited into the Treasury. 19
221	221
222	222	(g) Money of the Trust may not be considered money of the Maryland Senator 20
223	223	Edward J. Kasemeyer College Investment Plan and may not be commingled with the Plan. 21
224	224
225	225	(h) Money of the Trust may not be considered money of or be commingled with 22
226	226	the Maryland Broker–Dealer College Investment Plan. 23
227	227
228	228	(i) Money of the Trust may not be considered money of or be commingled with 24
229	229	the Maryland ABLE Program. 25
230	230
231	231	(j) (1) The debts, contracts, and obligations of the Trust are not the contracts, 26
232	232	debts, or obligations of the State and neither the faith and credit nor taxing power of the 27
233	233	State is pledged directly or indirectly or contingently, morally or otherwise, to the payment 28
234	234	of the debts, contracts, and obligations. 29
235	235
236	236	(2) The [Board] STATE TREASURER cannot directly or indirectly or 30
237	237	contingently obligate, morally or otherwise, the State to levy or pledge any form of taxation 31
238	238	whatsoever for the debts and obligations of the Trust or to make any appropriation for the 32
239	239	payment of the debts and obligations of the Trust. 33
240	240	6 HOUSE BILL 1290
241	241
242	242
243	243	(k) Neither the State nor any eligible institution of higher education shall be 1
244	244	liable for any losses or shortage of funds in the event that the Maryland Senator Edward 2
245	245	J. Kasemeyer Prepaid College Trust is insufficient to meet the tuition requirements of an 3
246	246	institution attended by the qualified beneficiary. 4
247	247
248	248	18–1904. 5
249	249
250	250	[(a) There is a Maryland 529 Board. 6
251	251
252	252	(b)] The [Board] STATE TREASURER shall administer: 7
253	253
254	254	(1) The Maryland Senator Edward J. Kasemeyer Prepaid College Trust 8
255	255	established under this subtitle; 9
256	256
257	257	(2) The Maryland Senator Edward J. Kasemeyer College Investment Plan 10
258	258	established under Subtitle 19A of this title; 11
259	259
260	260	(3) The Maryland Broker–Dealer College Investment Plan established 12
261	261	under Subtitle 19B of this title; and 13
262	262
263	263	(4) The Maryland ABLE Program established under Subtitle 19C of this 14
264	264	title. 15
265	265
266	266	[(c) The Board consists of the following members: 16
267	267
268	268	(1) The Secretary of the Maryland Higher Education Commission; 17
269	269
270	270	(2) The State Superintendent of Schools; 18
271	271
272	272	(3) The State Treasurer; 19
273	273
274	274	(4) The State Comptroller; 20
275	275
276	276	(5) The Chancellor of the University System of Maryland; 21
277	277
278	278	(6) The Secretary of Disabilities; and 22
279	279
280	280	(7) Five members of the public who shall be appointed by the Governor and 23
281	281	shall have significant experience in finance, accounting, investment management, or other 24
282	282	areas that can be of assistance to the Board. 25
283	283
284	284	(d) A member of the Board designated under subsection (c)(1) through (6) of this 26
285	285	section may designate an employee from the member’s staff to represent the member of the 27
286	286	Board, with the full voting rights, powers, and duties of the member. 28
287	287
288	288	(e) Before taking office, each appointee to the Board shall take the oath required 29
289	289	by Article I, § 9 of the Maryland Constitution. 30 HOUSE BILL 1290 7
290	290
291	291
292	292
293	293	(f) (1) Except for the terms of the initial members of the Board, the term of a 1
294	294	public member of the Board is 4 years. 2
295	295
296	296	(2) The terms of the public members of the Board are staggered as required 3
297	297	by the terms of the members of the Board on October 1, 1998. 4
298	298
299	299	(3) At the end of a term, a public member continues to serve until a 5
300	300	successor is appointed and qualifies. 6
301	301
302	302	(4) A public member who is appointed after a term has begun serves only 7
303	303	for the remainder of the term and until a successor is appointed and qualifies. 8
304	304
305	305	(5) A public member is eligible for reappointment. 9
306	306
307	307	(g) The Governor may remove a public member for incompetence or misconduct.] 10
308	308
309	309	18–1905. 11
310	310
311	311	(a) [The Board, from among the members of the Board, shall elect a chairman 12
312	312	and may elect additional officers that the Board considers necessary. 13
313	313
314	314	(b) The Board shall determine the times and places of meetings. 14
315	315
316	316	(c) A member of the Board: 15
317	317
318	318	(1) May not receive compensation; 16
319	319
320	320	(2) Is entitled to reimbursement for expenses under the Standard State 17
321	321	Travel Regulations; and 18
322	322
323	323	(3) Shall file a public disclosure of financial interests as required under the 19
324	324	Maryland Public Ethics Law. 20
325	325
326	326	(d)] (1) The [Board] STATE TREASURER: 21
327	327
328	328	(i) Shall appoint a Program executive director who is in the 22
329	329	executive service of the State Personnel Management System; and 23
330	330
331	331	(ii) May employ additional PROGRAM staff in accordance with the 24
332	332	budget. 25
333	333
334	334	(2) (i) Except for employees described in subparagraph (ii) or (iii) of this 26
335	335	paragraph, the employees shall be skilled service employees subject to the provisions of the 27
336	336	State Personnel and Pensions Article that govern skilled service employees. 28
337	337	8 HOUSE BILL 1290
338	338
339	339
340	340	(ii) An employee is in the professional service and subject to the 1
341	341	provisions of the State Personnel and Pensions Article that govern professional service 2
342	342	employees if the position: 3
343	343
344	344	1. Requires knowledge of an advanced type in a field of 4
345	345	science or learning customarily acquired by a course of specialized intellectual instruction 5
346	346	and study; and 6
347	347
348	348	2. Normally requires a professional license, an advanced 7
349	349	degree, or both. 8
350	350
351	351	(iii) An employee is in the management service and subject to the 9
352	352	provisions of the State Personnel and Pensions Article that govern management service 10
353	353	employees if the position: 11
354	354
355	355	1. Primarily involves direct responsibility for the oversight 12
356	356	and management of personnel and financial resources; 13
357	357
358	358	2. Requires the exercise of discretion and independent 14
359	359	judgment; and 15
360	360
361	361	3. Is not in the executive service. 16
362	362
363	363	(3) The [Board] STATE TREASURER may retain the services of 17
364	364	consultants, administrators, and other personnel, as necessary, to administer the Trust, 18
365	365	the Plan, the Broker–Dealer Plan, or the Maryland ABLE Program. 19
366	366
367	367	(4) The budget for the Program[, the Board,] and [its] staff [is] RETAINED 20
368	368	BY THE STATE TREASURER TO ADMINIST ER THE PROGRAM ARE subject to review by 21
369	369	the General Assembly for information purposes only. 22
370	370
371	371	[(e)] (B) The [Board] STATE TREASURER may adopt any regulations that the 23
372	372	[Board] STATE TREASURER considers necessary to carry out the provisions of this subtitle 24
373	373	or Subtitle 19A, Subtitle 19B, or Subtitle 19C of this title. 25
374	374
375	375	[(f)] (C) In [addition] ADMINISTERING THE PROGRAM, the [Board] STATE 26
376	376	TREASURER may: 27
377	377
378	378	(1) [Adopt an official seal] ADMINISTER OATHS , TAKE TESTIMONY , AND 28
379	379	SUBPOENA WITNESSES A ND BOOKS, RECORDS, AND OTHER DOCUMEN TS; 29
380	380
381	381	(2) Sue and be sued FOR CAUSES OF ACTION RELATED TO THE 30
382	382	ADMINISTRATION OF TH E PROGRAM; 31
383	383
384	384	(3) Execute contracts and other necessary instruments; 32
385	385	HOUSE BILL 1290 9
386	386
387	387
388	388	(4) Hold, buy, and sell instruments, obligations, securities, and other 1
389	389	investments consistent with its comprehensive investment plan; 2
390	390
391	391	(5) Enter into agreements with eligible institutions of higher education and 3
392	392	other public or private entities for the promotion, administration, or marketing of the 4
393	393	Program, the Trust, the Plan, the Broker–Dealer Plan, or the Maryland ABLE Program; 5
394	394
395	395	(6) Invest funds not required for immediate disbursement; 6
396	396
397	397	(7) Solicit and accept gifts, grants, loans, or other aid from any source or 7
398	398	participate in any government program for purposes consistent with this subtitle and 8
399	399	Subtitles 19A, 19B, and 19C of this title; 9
400	400
401	401	(8) Subject to the review of the General Assembly, impose, collect, and 10
402	402	distribute across Maryland 529 programs reasonable administrative fees for any 11
403	403	transactions under the Trust, the Plan, the Broker–Dealer Plan, or the Maryland ABLE 12
404	404	Program or involving prepaid contracts or transactions affecting the Program, the Trust, 13
405	405	the Plan, the Broker–Dealer Plan, or the Maryland ABLE Program; 14
406	406
407	407	(9) Procure insurance against any loss of assets of the Program, the Trust, 15
408	408	the Plan, the Broker–Dealer Plan, or the Maryland ABLE Program; 16
409	409
410	410	(10) Endorse insurance coverage written exclusively for the purpose of 17
411	411	protecting: 18
412	412
413	413	(i) A prepaid contract under the Trust and the account holder and 19
414	414	the qualified beneficiary of the contract; 20
415	415
416	416	(ii) An investment account under the Plan, or the Broker–Dealer 21
417	417	Plan, and the account holder and qualified designated beneficiary of the investment 22
418	418	account; or 23
419	419
420	420	(iii) An ABLE account under the Maryland ABLE Program and the 24
421	421	ABLE account holder; 25
422	422
423	423	(11) Designate terms under which money may be withdrawn from the 26
424	424	Program, the Trust, the Plan, the Broker–Dealer Plan, or the Maryland ABLE Program; 27
425	425
426	426	(12) Establish additional procedural and substantive requirements for 28
427	427	participation in and the administration or marketing of the Program, the Trust, the Plan, 29
428	428	the Broker–Dealer Plan, or the Maryland ABLE Program; 30
429	429
430	430	(13) Appear on the [Board’s] STATE TREASURER’S own behalf before 31
431	431	[other] boards, commissions, or other governmental agencies; and 32
432	432	10 HOUSE BILL 1290
433	433
434	434
435	435	(14) Take any other action that the [Board] STATE TREASURER considers 1
436	436	appropriate to implement and administer the Program, the Trust, the Plan, the 2
437	437	Broker–Dealer Plan, or the Maryland ABLE Program. 3
438	438
439	439	18–1905.1. 4
440	440
441	441	(a) (1) The [Board] STATE TREASURER shall develop and implement a 5
442	442	marketing plan to increase participation in Maryland 529. 6
443	443
444	444	(2) (i) The marketing plan shall identify methods to increase general 7
445	445	participation in Maryland 529. 8
446	446
447	447	(ii) The [Board] STATE TREASURER shall coordinate with the 9
448	448	Board of Trustees of the Maryland Teachers and State Employees Supplemental 10
449	449	Retirement Plans and local school systems, respectively, to identify methods to increase 11
450	450	participation in Maryland 529 among: 12
451	451
452	452	1. State employees that participate in other State tax 13
453	453	savings programs; and 14
454	454
455	455	2. Families of students in local school systems with lower 15
456	456	rates of participation in Maryland 529 than the State population. 16
457	457
458	458	(b) On or before December 1, 2016, and every 3 years thereafter, the [Board] 17
459	459	STATE TREASURER shall submit the marketing plan required under subsection (a) of this 18
460	460	section to the Governor and, in accordance with § 2–1257 of the State Government Article, 19
461	461	the Senate Budget and Taxation Committee, the Senate [Education, Health, and 20
462	462	Environmental Affairs] Committee ON EDUCATION, ENERGY, AND THE 21
463	463	ENVIRONMENT , the House Committee on Ways and Means, and the House Appropriations 22
464	464	Committee. 23
465	465
466	466	18–1906. 24
467	467
468	468	(a) The [Board] STATE TREASURER shall adopt a comprehensive investment 25
469	469	plan for the administration of the Trust. 26
470	470
471	471	(b) The plan shall specify the investment policies used by the [Board] STATE 27
472	472	TREASURER in the administration of the Trust. 28
473	473
474	474	(c) Assets of the Trust shall be invested in accordance with the comprehensive 29
475	475	investment plan. 30
476	476
477	477	(d) The comprehensive investment plan must indicate the percentage of assets 31
478	478	that shall be held in each class of investment, the amount of funds held in any cash pool, 32
479	479	the amount of funds held in fixed assets investments, the amount of funds held in equity 33
480	480	investments, and the percentage and dollar value of assets placed with outside managers. 34 HOUSE BILL 1290 11
481	481
482	482
483	483
484	484	(e) (1) Notwithstanding any law restricting the deposit or investment of State 1
485	485	money, the [Board] STATE TREASURER may place assets of the Trust in savings accounts 2
486	486	or may use the assets to purchase fixed or variable life insurance or annuity contracts, 3
487	487	securities, evidence of indebtedness, or other investment products pursuant to the 4
488	488	comprehensive investment plan. 5
489	489
490	490	(2) Any insurance, annuity contracts, savings, or other investment 6
491	491	products procured by the [Board] STATE TREASURER shall be underwritten and offered 7
492	492	in compliance with applicable federal and State laws. 8
493	493
494	494	(f) The [Board] STATE TREASURER shall make every effort to invest the assets 9
495	495	of the Trust in a manner that earns, at a minimum, sufficient earnings to generate the 10
496	496	difference between the prepaid amount under prepaid contracts and the average in–State 11
497	497	tuition costs at public institutions of higher education in the State at the time that the 12
498	498	benefits are exercised. 13
499	499
500	500	(g) The comprehensive investment plan shall provide for the Trust to be 14
501	501	administered in an actuarially sound manner to assure that the [Board] STATE 15
502	502	TREASURER may defray obligations of the Trust. 16
503	503
504	504	(h) The [Board] STATE TREASURER shall review the comprehensive investment 17
505	505	plan at least annually to assure that the Trust remains actuarially sound. 18
506	506
507	507	(i) The [Board] STATE TREASURER may contract with an investment advisory 19
508	508	or management company for the investment and management of the Trust as long as the 20
509	509	Trust is administered in accordance with the comprehensive investment plan. 21
510	510
511	511	(j) The [Board] STATE TREASURER: 22
512	512
513	513	(1) Shall preserve, invest, and expend the assets of the Trust solely for the 23
514	514	purposes of this subtitle; and 24
515	515
516	516	(2) May not loan, transfer, or use the assets for any other purpose of the 25
517	517	State. 26
518	518
519	519	(k) The Trust is not subject to § 7–302 of the State Finance and Procurement 27
520	520	Article. 28
521	521
522	522	(l) Unless the [Board] STATE TREASURER provides otherwise by regulation, 29
523	523	the [Board] STATE TREASURER shall use the proceeds in the Trust in the following order: 30
524	524
525	525	(1) To pay eligible institutions of higher education in accordance with the 31
526	526	[Board’s] STATE TREASURER’S obligations under prepaid contracts; 32
527	527
528	528	(2) To refund money on the termination of prepaid contracts; and 33 12 HOUSE BILL 1290
529	529
530	530
531	531
532	532	(3) To pay the operating expenses of the [Board] STATE TREASURER IN 1
533	533	ADMINISTERING THE PROGRAM. 2
534	534
535	535	(m) (1) Except as provided in paragraph (2) of this subsection, if the [Board] 3
536	536	STATE TREASURER determines after an annual review that the market value of Trust 4
537	537	assets exceeds the amount necessary to satisfy all scheduled payments currently due or 5
538	538	scheduled to become due under all prepaid contracts by 30% or more, the [Board] STATE 6
539	539	TREASURER may provide for a rebate from the excess to account holders of existing 7
540	540	prepaid contracts in an amount to be determined by the [Board] STATE TREASURER. 8
541	541
542	542	(2) The [Board] STATE TREASURER may not rebate any amount to 9
543	543	account holders if, within the 5 years immediately preceding the proposed rebate: 10
544	544
545	545	(i) The [Board] STATE TREASURER has requested an 11
546	546	appropriation under § 18–1906.1 of this subtitle; or 12
547	547
548	548	(ii) The Trust has failed to repay to the State any appropriation 13
549	549	under § 18–1906.1 of this subtitle. 14
550	550
551	551	18–1906.1. 15
552	552
553	553	(a) If the current prepaid contract obligations of the Trust exceed the market 16
554	554	value of Trust assets, at the request of the [Board] STATE TREASURER, the Governor 17
555	555	shall include in the annual budget bill submitted to the General Assembly an appropriation 18
556	556	in the amount determined under subsection (b) of this section. 19
557	557
558	558	(b) The appropriation to be included in the budget bill under subsection (a) of this 20
559	559	section shall equal the difference between the current prepaid contract obligations and the 21
560	560	market value of Trust assets. 22
561	561
562	562	(c) For purposes of this section, the current prepaid contract obligations and the 23
563	563	market value of Trust assets: 24
564	564
565	565	(1) Shall be determined as of June 30 of the calendar year that ended before 25
566	566	the beginning of the fiscal year for which the appropriation is requested; and 26
567	567
568	568	(2) Shall be verified by the report of the independent outside auditor 27
569	569	required under § 18–1916 of this subtitle. 28
570	570
571	571	(d) (1) The amount appropriated under this section shall be deposited into the 29
572	572	Trust. 30
573	573
574	574	(2) All amounts paid into the Trust under this section shall constitute and 31
575	575	be accounted for as advances to the Trust. 32
576	576	HOUSE BILL 1290 13
577	577
578	578
579	579	(3) Subject to the rights of the Trust’s contract holders, amounts 1
580	580	appropriated under this section shall be repaid to the State without interest in equal 2
581	581	amounts in each of the next 2 fiscal years succeeding the one for which the appropriation 3
582	582	was made. 4
583	583
584	584	(4) If the appropriation in the State budget as enacted by the General 5
585	585	Assembly is less than the amount specified under subsection (b) of this section, the [Board] 6
586	586	STATE TREASURER may adjust the terms of subsequent or current prepaid contracts to 7
587	587	ensure continued actuarial soundness of the Trust. 8
588	588
589	589	18–1907. 9
590	590
591	591	(a) In this section, “fiduciary” means: 10
592	592
593	593	(1) [A member of the Board] THE STATE TREASURER; or 11
594	594
595	595	(2) An employee of the Program or the Trust who exercises any 12
596	596	discretionary authority or control over: 13
597	597
598	598	(i) The management or administration of the Trust; or 14
599	599
600	600	(ii) The management or disposition of the assets of the Trust. 15
601	601
602	602	(b) A fiduciary shall discharge the fiduciary’s duties with respect to the Trust: 16
603	603
604	604	(1) Solely in the interest of the participants; 17
605	605
606	606	(2) For the exclusive purposes of providing benefits to the participants and 18
607	607	providing reasonable expenses of administering the Trust; 19
608	608
609	609	(3) With the care, skill, prudence, and diligence under the circumstances 20
610	610	then prevailing, that a prudent person acting in a like capacity and familiar with such 21
611	611	matters would use in the conduct of an enterprise of a like character with like aims; 22
612	612
613	613	(4) By diversifying the investments of the Trust so as to minimize the risk 23
614	614	of large losses, unless under the circumstances it is clearly prudent not to do so; 24
615	615
616	616	(5) In accordance with the laws governing the Trust; and 25
617	617
618	618	(6) In accordance with the documents and instruments governing the Trust 26
619	619	to the extent that the documents and instruments are consistent with this subtitle. 27
620	620
621	621	(c) In exercising authority, control, or discretion with respect to the Trust, a 28
622	622	fiduciary may not: 29
623	623
624	624	(1) Use the assets of the Trust for the fiduciary’s own interest or account; 30
625	625	14 HOUSE BILL 1290
626	626
627	627
628	628	(2) Act in a transaction involving the Trust on behalf of a person, or 1
629	629	represent a person, if the interests of the person are adverse to the interests of the Trust or 2
630	630	the interests of participants; 3
631	631
632	632	(3) Receive any consideration for the fiduciary’s own account from a person 4
633	633	dealing with the Trust in connection with a transaction involving the assets of the Trust; 5
634	634	or 6
635	635
636	636	(4) Become an endorser or surety or, in any manner, an obligor, for money 7
637	637	lent to or borrowed from the [Board] STATE TREASURER. 8
638	638
639	639	18–1908. 9
640	640
641	641	(a) The [Board] STATE TREASURER shall purchase a bond for each fiduciary in 10
642	642	accordance with Title 9, Subtitle 17 of the State Government Article. 11
643	643
644	644	(b) Unless a fiduciary is bonded, the fiduciary may not exercise custody or control 12
645	645	of any assets of the Trust. 13
646	646
647	647	(c) A fiduciary may not allow another fiduciary to act in violation of this section. 14
648	648
649	649	18–1909. 15
650	650
651	651	(a) (1) [The Board shall] ON OR AFTER JUNE 1, 2023, THE STATE 16
652	652	TREASURER MAY NOT establish prepaid contracts under the Trust to provide for the 17
653	653	advance payment of tuition at: 18
654	654
655	655	[(1)] (I) A community college; 19
656	656
657	657	[(2)] (II) A 4–year college; 20
658	658
659	659	[(3)] (III) A university; or 21
660	660
661	661	[(4)] (IV) Any combination of a community college, college, or university. 22
662	662
663	663	(2) ON OR AFTER JUNE 1, 2023, AN ACCOUNT HOLDER MA Y NOT 23
664	664	ENTER INTO PREPAID CONTRACTS UN DER THE TRUST TO PROVIDE FOR THE 24
665	665	ADVANCE PAYMENT OF T UITION AT: 25
666	666
667	667	(I) A COMMUNITY COLLEGE ; 26
668	668
669	669	(II) A 4–YEAR COLLEGE ; 27
670	670
671	671	(III) A UNIVERSITY; OR 28
672	672	HOUSE BILL 1290 15
673	673
674	674
675	675	(IV) ANY COMBINATION OF A COMMUNITY COLLEGE , COLLEGE, 1
676	676	OR UNIVERSITY. 2
677	677
678	678	(b) (1) For the purpose of entering into a prepaid contract, either the account 3
679	679	holder or the qualified beneficiary must be a resident of Maryland or of the District of 4
680	680	Columbia at the time that the account holder enters into the prepaid contract. 5
681	681
682	682	(2) For the purposes of determining residency for the purchase of a prepaid 6
683	683	contract: 7
684	684
685	685	(i) For residency in Maryland, “resident” has the meaning stated in 8
686	686	§ 10–101 of the Tax – General Article; and 9
687	687
688	688	(ii) For residency in the District of Columbia, “resident” has the 10
689	689	meaning stated in § 47–1801.04 of the District of Columbia Code Annotated. 11
690	690
691	691	(c) The cost of a prepaid contract shall be based on: 12
692	692
693	693	(1) The average current in–State tuition costs at the time the prepaid 13
694	694	contract is purchased at public institutions of higher education in the State; 14
695	695
696	696	(2) The number of years expected to elapse between the purchase of a 15
697	697	prepaid contract and the use of the benefits of the prepaid contract; and 16
698	698
699	699	(3) The projected tuition costs at the time that the benefits will be 17
700	700	exercised. 18
701	701
702	702	(d) Each prepaid contract made under the provisions of this subtitle shall include 19
703	703	the following provisions: 20
704	704
705	705	(1) The amount of each payment and the number of payments required 21
706	706	from an account holder; 22
707	707
708	708	(2) The terms and conditions under which account holders shall remit 23
709	709	payments, including the dates of the payments; 24
710	710
711	711	(3) Provisions for late payment charges and defaults; 25
712	712
713	713	(4) Penalties for early withdrawal from the Trust; 26
714	714
715	715	(5) The amount and terms of any administrative fees that must be paid by 27
716	716	the account holder or the beneficiary; 28
717	717
718	718	(6) The name and date of birth of the qualified beneficiary on whose behalf 29
719	719	the contract is made; 30
720	720	16 HOUSE BILL 1290
721	721
722	722
723	723	(7) Terms and conditions for a substitution for the qualified beneficiary 1
724	724	originally named; 2
725	725
726	726	(8) Terms and conditions for the termination of the prepaid contract; 3
727	727
728	728	(9) The time period during which the qualified beneficiary may claim 4
729	729	benefits from the Trust; 5
730	730
731	731	(10) The maximum number of undergraduate semester hours that are 6
732	732	prepaid under the prepaid contract, based on in–State tuition at a public institution of 7
733	733	higher education in the State; 8
734	734
735	735	(11) All other rights and obligations of the account holder and the Trust; and 9
736	736
737	737	(12) Any other terms and conditions that the [Board] STATE TREASURER 10
738	738	considers necessary or appropriate. 11
739	739
740	740	(e) The [Board] STATE TREASURER shall allow the conversion of a prepaid 12
741	741	contract from one tuition plan or payment option to a different tuition plan or payment 13
742	742	option. 14
743	743
744	744	(f) The [Board] STATE TREASURER shall allow excess prepaid contract benefits 15
745	745	due to receipt of a scholarship, tuition remission, or early graduation from college to be used 16
746	746	toward the payment of other qualified higher education expenses, as specified by the 17
747	747	[Board] STATE TREASURER, at an eligible institution of higher education. 18
748	748
749	749	(g) (1) ON OR AFTER JUNE 1, 2023, THE STATE TREASURER MAY NOT 19
750	750	ALLOW THE TRANSFER O F FUNDS FROM ANY OTH ER QUALIFIED STATE TUITION 20
751	751	PROGRAM TO THE TRUST, IN ACCORDANCE WITH F EDERAL LAW. 21
752	752
753	753	(2) (I) [The Board] ON OR BEFORE DECEMBER 31, 2024, THE 22
754	754	STATE TREASURER shall allow the transfer of funds from the Trust to any other qualified 23
755	755	State tuition program [or from any other qualified State tuition program to the Trust], in 24
756	756	accordance with federal law. 25
757	757
758	758	(II) SUBJECT TO SUBPARAGRA PH (III) OF THIS PARAGRAPH , 26
759	759	THE STATE TREASURER SHALL GRANT AN INTEREST PAYMENT TO AN ACCOUNT 27
760	760	HOLDER WHO , IN ACCORDANCE WITH S UBPARAGRAPH (I) OF THIS PARAGRAPH , 28
761	761	TRANSFERS FUNDS FROM THE TRUST TO THE PLAN. 29
762	762
763	763	(III) THE STATE TREASURER SHALL ADOPT REGULATIONS TO 30
764	764	DETERMINE THE INTERE ST RATE FOR PAYMENTS REQUIRE D UNDER 31
765	765	SUBPARAGRAPH (II) OF THIS PARAGRAPH . 32
766	766	HOUSE BILL 1290 17
767	767
768	768
769	769	(3) ON OR AFTER JANUARY 1, 2025, THE STATE TREASURER MAY NOT 1
770	770	ALLOW THE TRANSFER O F FUNDS FROM THE TRUST TO ANY OTHER QU ALIFIED 2
771	771	STATE TUITION PROGRAM, IN ACCORDANCE WITH F EDERAL LAW. 3
772	772
773	773	(h) The [Board] STATE TREASURER shall allow the transfer of funds from the 4
774	774	Trust to any qualified ABLE program established in accordance with § 529A of the Internal 5
775	775	Revenue Code. 6
776	776
777	777	(i) The [Board] STATE TREASURER shall set procedures to ensure that 7
778	778	contributions to the Trust plus contributions or payments to other qualified State tuition 8
779	779	programs do not exceed a total maximum amount determined by § 529 of the Internal 9
780	780	Revenue Code for contributions to multiple qualified State tuition programs. 10
781	781
782	782	(j) The Maryland prepaid contract plan shall be referred to as the Senator 11
783	783	Edward J. Kasemeyer prepaid contract plan. 12
784	784
785	785	18–1910. 13
786	786
787	787	(a) (1) The [Board] STATE TREASURER shall issue refunds as specified in 14
788	788	this section. 15
789	789
790	790	(2) Unless authorized by the [Board] STATE TREASURER or under 16
791	791	subsection (b) of this section, a refund may not exceed the amount paid into the Trust by 17
792	792	the account holder. 18
793	793
794	794	(b) A refund equal to the same benefits as provided by the prepaid contract, minus 19
795	795	any amount paid out of the funds of the Trust on behalf of the qualified beneficiary and for 20
796	796	reasonable administrative charges, shall be made if the beneficiary: 21
797	797
798	798	(1) Is awarded a scholarship or tuition remission that covers benefits 22
799	799	provided under the prepaid contract; or 23
800	800
801	801	(2) Dies or suffers from a disability which prevents the beneficiary from 24
802	802	attending an institution of higher education within the time allowed by this subtitle. 25
803	803
804	804	(c) (1) A reduced refund of the contributions made to the Trust, as determined 26
805	805	by the [Board] STATE TREASURER, shall be made if: 27
806	806
807	807	(i) The beneficiary does not attend an institution of higher 28
808	808	education; 29
809	809
810	810	(ii) Benefits are not exercised under the contract within a time 30
811	811	specified in the contract; or 31
812	812
813	813	(iii) The prepaid contract is canceled by the account holder. 32
814	814	18 HOUSE BILL 1290
815	815
816	816
817	817	(2) The time that a qualified beneficiary spends in active duty as a member 1
818	818	of the United States armed forces shall be added to the time period allowed to exercise the 2
819	819	benefits under a prepaid contract before a termination under paragraph (1) of this 3
820	820	subsection. 4
821	821
822	822	18–1911. 5
823	823
824	824	The [Board] PROGRAM, Trust, and prepaid contracts issued under this subtitle are 6
825	825	not subject to the provisions of the Insurance Article. 7
826	826
827	827	18–1912. 8
828	828
829	829	The assets and income of the Trust are exempt from State and local taxation. 9
830	830
831	831	18–1913. 10
832	832
833	833	(a) In this section, “person” does not include the State. 11
834	834
835	835	(b) A person may not attach, execute, garnish, or otherwise seize any current or 12
836	836	future benefit under a prepaid contract or any asset of the Trust. 13
837	837
838	838	18–1914. 14
839	839
840	840	(a) Nothing in this subtitle or in any prepaid contract may be construed as a 15
841	841	promise or guarantee by the [Board] STATE TREASURER of admission to, continued 16
842	842	enrollment at, or graduation from an institution of higher education. 17
843	843
844	844	(b) The actual tuition rate charged to a qualified beneficiary shall be determined 18
845	845	at the time of enrollment in accordance with the residency policy adopted by the governing 19
846	846	board of the institution of higher education at which the qualified beneficiary enrolls. 20
847	847
848	848	18–1915. 21
849	849
850	850	The State and its agencies or any local government in the State may agree, by 22
851	851	contract or otherwise, to remit payments on behalf of an employee toward a prepaid 23
852	852	contract through payroll deductions. 24
853	853
854	854	18–1916. 25
855	855
856	856	(a) (1) The Legislative Auditor shall audit the Trust as provided under Title 2, 26
857	857	Subtitle 12 of the State Government Article. 27
858	858
859	859	(2) The [Board] STATE TREASURER shall cause an audit of the Trust to 28
860	860	be made by an outside independent auditor annually. 29
861	861
862	862	(3) The [Board] STATE TREASURER shall pay for the audit required 30
863	863	under paragraph (2) of this subsection. 31 HOUSE BILL 1290 19
864	864
865	865
866	866
867	867	(b) (1) Within 120 days after the close of each fiscal year, the [Board] STATE 1
868	868	TREASURER shall submit to the Governor and, subject to § 2–1257 of the State 2
869	869	Government Article, to the General Assembly a report including: 3
870	870
871	871	(i) The audit of the outside independent auditor; 4
872	872
873	873	(ii) A financial accounting of the Trust, including: 5
874	874
875	875	1. The annual review of the comprehensive investment plan 6
876	876	which shall include: 7
877	877
878	878	A. The status of the investment program, including 8
879	879	investment income matched to projected enrollment costs under the existing prepaid 9
880	880	contracts; 10
881	881
882	882	B. The assets held in each class of investment, the amount of 11
883	883	funds held in any cash pool, the amount of funds held in fixed assets investments, and the 12
884	884	amount of funds held in equity investments; 13
885	885
886	886	C. The percentage and dollar value of assets placed with 14
887	887	outside managers; 15
888	888
889	889	D. The income produced by each class of investment; and 16
890	890
891	891	E. The income produced by each investment manager; and 17
892	892
893	893	2. A detailed account of the operating and administrative 18
894	894	budget for the Trust, which shall include a complete list of revenue sources and 19
895	895	expenditures detailing the line item expenditures for: 20
896	896
897	897	A. Salaries, wages, and fringe benefits; 21
898	898
899	899	B. Technical and special fees; 22
900	900
901	901	C. Communication; 23
902	902
903	903	D. Travel; 24
904	904
905	905	E. Contractual services; 25
906	906
907	907	F. Supplies and materials; 26
908	908
909	909	G. Equipment; 27
910	910
911	911	H. Fixed charges; and 28
912	912	20 HOUSE BILL 1290
913	913
914	914
915	915	I. Other expenses; 1
916	916
917	917	(iii) The number of prepaid contracts entered into during the 2
918	918	previous fiscal year; 3
919	919
920	920	(iv) Efforts by the [Board] STATE TREASURER in marketing the 4
921	921	prepaid contracts under the Trust; and 5
922	922
923	923	(v) Any recommendations of the [Board] STATE TREASURER 6
924	924	concerning the operation of the Trust. 7
925	925
926	926	(2) The [Board] STATE TREASURER shall make available to each account 8
927	927	holder a copy of a summary of the report and the option to purchase the full report at a 9
928	928	nominal charge. 10
929	929
930	930	(c) The audit required by subsection (a)(2) of this section and the report required 11
931	931	by subsection (b) of this section may be combined with any other audit or report for the 12
932	932	same fiscal year required to be submitted by the [Board] STATE TREASURER to the 13
933	933	Governor and the General Assembly. 14
934	934
935	935	18–19A–01. 15
936	936
937	937	(a) In this subtitle the following words have the meanings indicated. 16
938	938
939	939	(b) “Account holder” means the person who established an investment account on 17
940	940	behalf of a qualified designated beneficiary. 18
941	941
942	942	(c) [“Board” means the Maryland 529 Board established under § 18–1904 of this 19
943	943	title. 20
944	944
945	945	(d)] “Eligible educational institution” has the meaning stated in § 529(e) of the 21
946	946	Internal Revenue Code. 22
947	947
948	948	[(e)] (D) “Investment account” means an account established by an account 23
949	949	holder under this subtitle on behalf of a qualified designated beneficiary for the purpose of 24
950	950	applying distributions toward qualified higher education expenses at eligible educational 25
951	951	institutions. 26
952	952
953	953	[(f)] (E) “Plan” means the Maryland Senator Edward J. Kasemeyer College 27
954	954	Investment Plan established under this subtitle. 28
955	955
956	956	[(g)] (F) “Qualified designated beneficiary” has the meaning stated in § 529 of 29
957	957	the Internal Revenue Code. 30
958	958
959	959	[(h)] (G) “Qualified higher education expenses” has the meaning stated in § 529 31
960	960	of the Internal Revenue Code. 32 HOUSE BILL 1290 21
961	961
962	962
963	963
964	964	[(i)] (H) “Qualified state tuition program” has the meaning stated in § 529 of the 1
965	965	Internal Revenue Code. 2
966	966
967	967	18–19A–02. 3
968	968
969	969	(a) There is a Maryland Senator Edward J. Kasemeyer College Investment Plan. 4
970	970
971	971	(b) The purpose of the Plan is to allow contributions to an investment account 5
972	972	established for the purposes of meeting the qualified higher education expenses of the 6
973	973	qualified designated beneficiary of the account. 7
974	974
975	975	(c) (1) The [Board] STATE TREASURER shall administer, manage, promote, 8
976	976	and market the Plan. 9
977	977
978	978	(2) The [Board] STATE TREASURER shall administer the Plan in 10
979	979	compliance with Internal Revenue Service standards for qualified State tuition programs. 11
980	980
981	981	(d) The [Board] STATE TREASURER shall adopt procedures that the [Board] 12
982	982	STATE TREASURER considers necessary to carry out the provisions of this subtitle. 13
983	983
984	984	(e) The [Board] STATE TREASURER shall adopt procedures relating to: 14
985	985
986	986	(1) Application procedures for participation in the Plan; 15
987	987
988	988	(2) Start–up costs incurred by the State for the development of the Plan 16
989	989	with these costs to be reimbursed to the State by the Plan; 17
990	990
991	991	(3) Early withdrawals, so that there will be no major detriment to the 18
992	992	remaining account holders in the Plan; 19
993	993
994	994	(4) The State contribution program; 20
995	995
996	996	(5) Transfer of funds from the Plan to other qualified State tuition 21
997	997	programs and from other qualified State tuition programs to the Plan in accordance with 22
998	998	federal law; and 23
999	999
1000	1000	(6) Transfer of funds from the Plan to a qualified ABLE program 24
1001	1001	established in accordance with § 529A of the Internal Revenue Code. 25
1002	1002
1003	1003	(f) At least annually, the [Board] STATE TREASURER shall issue to each 26
1004	1004	account holder a statement that provides a separate accounting for each qualified 27
1005	1005	designated beneficiary providing the following information with respect to each account: 28
1006	1006
1007	1007	(1) The beginning balance; 29
1008	1008	22 HOUSE BILL 1290
1009	1009
1010	1010
1011	1011	(2) Contributions to the account, including any State contribution; 1
1012	1012
1013	1013	(3) Withdrawals from the account during the previous year; and 2
1014	1014
1015	1015	(4) Ending investment account value. 3
1016	1016
1017	1017	18–19A–03. 4
1018	1018
1019	1019	(a) (1) The [Board] STATE TREASURER may issue requests for proposals to 5
1020	1020	evaluate and determine the means for the administration, management, promotion, or 6
1021	1021	marketing of the Plan. 7
1022	1022
1023	1023	(2) The [Board] STATE TREASURER shall consider proposals that meet 8
1024	1024	the following criteria: 9
1025	1025
1026	1026	(i) Ability to develop and administer an investment program of a 10
1027	1027	nature similar to the objectives of the Plan; 11
1028	1028
1029	1029	(ii) Ability to administer financial programs with individual account 12
1030	1030	records and reporting; 13
1031	1031
1032	1032	(iii) Ability to market the Plan to Maryland residents; 14
1033	1033
1034	1034	(iv) Ability to market the Plan to nonresidents of Maryland; and 15
1035	1035
1036	1036	(v) Ability to coordinate the Plan with other programs or 16
1037	1037	informational services considered beneficial by the [Board] STATE TREASURER, including 17
1038	1038	the Maryland Senator Edward J. Kasemeyer Prepaid College Trust established under 18
1039	1039	Subtitle 19 of this title. 19
1040	1040
1041	1041	(b) (1) Except for applications made under § 18–19A–04.1 of this subtitle, the 20
1042	1042	[Board] STATE TREASURER may require an initial application fee to be used for 21
1043	1043	administrative costs of the Plan. 22
1044	1044
1045	1045	(2) The [Board] STATE TREASURER may require additional fees 23
1046	1046	associated with the expenses of the Plan. 24
1047	1047
1048	1048	(c) (1) Contributions to the Plan on behalf of a qualified designated beneficiary 25
1049	1049	may not exceed the maximum amount determined by the [Board] STATE TREASURER to 26
1050	1050	be in accordance with § 529 of the Internal Revenue Code. 27
1051	1051
1052	1052	(2) Contributions to the Plan may be made only in cash or cash equivalent. 28
1053	1053
1054	1054	(3) The Plan shall include provisions for automatic contributions. 29
1055	1055	HOUSE BILL 1290 23
1056	1056
1057	1057
1058	1058	(d) The [Board] STATE TREASURER shall adopt procedures to ensure that 1
1059	1059	contributions to the Plan plus contributions or payments to other qualified State tuition 2
1060	1060	programs do not exceed a total maximum amount determined under § 529 of the Internal 3
1061	1061	Revenue Code for contributions to multiple qualified State tuition programs. 4
1062	1062
1063	1063	(e) (1) The Plan: 5
1064	1064
1065	1065	(i) Shall be established in the form determined by the [Board] 6
1066	1066	STATE TREASURER; and 7
1067	1067
1068	1068	(ii) May be established as a trust to be declared by the [Board] 8
1069	1069	STATE TREASURER. 9
1070	1070
1071	1071	(2) The Plan may be divided into multiple investment portfolios. 10
1072	1072
1073	1073	(3) If the Plan is divided into multiple portfolios as provided in paragraph 11
1074	1074	(2) of this subsection, the debts, liabilities, obligations, and expenses incurred, contracted 12
1075	1075	for, or otherwise existing with respect to a particular portfolio shall be enforceable against 13
1076	1076	the assets of that portfolio only and not against the assets of the Plan generally, if: 14
1077	1077
1078	1078	(i) Distinct records are maintained for each portfolio; and 15
1079	1079
1080	1080	(ii) The assets associated with each portfolio are accounted for 16
1081	1081	separately from the other assets of the Plan. 17
1082	1082
1083	1083	(f) The Maryland College Investment Plan shall be referred to as the Senator 18
1084	1084	Edward J. Kasemeyer College Investment Plan. 19
1085	1085
1086	1086	18–19A–04. 20
1087	1087
1088	1088	(a) A Maryland resident or a nonresident of Maryland may participate in and 21
1089	1089	benefit from the Plan. 22
1090	1090
1091	1091	(b) Distributions shall be requested by the account holder. 23
1092	1092
1093	1093	18–19A–04.1. 24
1094	1094
1095	1095	(a) (1) Subject to paragraph (2) of this subsection, for investment accounts 25
1096	1096	established after December 31, 2016, a State contribution may be made to not more than 26
1097	1097	two investment accounts for each qualified beneficiary as provided in this section if: 27
1098	1098
1099	1099	(i) The qualified beneficiary of the investment account and the 28
1100	1100	account holder are Maryland residents; 29
1101	1101
1102	1102	(ii) The account holder is at least 18 years old for applications filed 30
1103	1103	on or after January 1, 2022; 31
1104	1104	24 HOUSE BILL 1290
1105	1105
1106	1106
1107	1107	(iii) The account holder submits an application to the [Board] STATE 1
1108	1108	TREASURER or [its] THE STATE TREASURER’S designee between January 1 and June 1 2
1109	1109	of each year; 3
1110	1110
1111	1111	(iv) The account holder has Maryland adjusted gross income in the 4
1112	1112	previous taxable year no greater than $112,500 for an individual or $175,000 for a married 5
1113	1113	couple filing a joint return; 6
1114	1114
1115	1115	(v) The account holder files income taxes on or before July 15 of each 7
1116	1116	year; and 8
1117	1117
1118	1118	(vi) The qualified beneficiary is under the age of 26 years in the 9
1119	1119	calendar year before the account holder submits an application. 10
1120	1120
1121	1121	(2) For State contribution application periods after December 31, 2020, a 11
1122	1122	qualified beneficiary may not receive more than two State contributions for each year the 12
1123	1123	qualified beneficiary is eligible for the State contribution under this section. 13
1124	1124
1125	1125	(b) (1) An application may be made in person, online, or by mail. 14
1126	1126
1127	1127	(2) The [Board] STATE TREASURER shall develop: 15
1128	1128
1129	1129	(i) An application form that: 16
1130	1130
1131	1131	1. Includes permission for confirming Maryland taxable 17
1132	1132	income with the Comptroller; and 18
1133	1133
1134	1134	2. Allows for certification of Maryland residency; 19
1135	1135
1136	1136	(ii) A procedure to certify the date and time of receipt of an 20
1137	1137	application; and 21
1138	1138
1139	1139	(iii) Any other necessary procedures for the submittal of applications. 22
1140	1140
1141	1141	(c) (1) For an account holder with Maryland adjusted gross income of less than 23
1142	1142	$50,000 for an individual or $75,000 for a married couple filing a joint return who 24
1143	1143	contributes at least $25 per beneficiary during the contribution period in subsection (e) of 25
1144	1144	this section, the State shall provide an additional $500 per beneficiary. 26
1145	1145
1146	1146	(2) For an account holder with Maryland adjusted gross income of at least 27
1147	1147	$50,000 but less than $87,500 for an individual or at least $75,000 but less than $125,000 28
1148	1148	for a married couple filing a joint return who contributes at least $100 per beneficiary 29
1149	1149	during the contribution period in subsection (e) of this section, the State shall provide an 30
1150	1150	additional $500 per beneficiary. 31
1151	1151
1152	1152	(3) For an account holder with Maryland adjusted gross income of at least 32
1153	1153	$87,500 but no greater than $112,500 for an individual or at least $125,000 but no greater 33 HOUSE BILL 1290 25
1154	1154
1155	1155
1156	1156	than $175,000 for a married couple filing a joint return who contributes at least $250 per 1
1157	1157	beneficiary during the contribution period in subsection (e) of this section, the State shall 2
1158	1158	provide an additional $250 per beneficiary. 3
1159	1159
1160	1160	(d) (1) The Governor shall include in the annual budget bill an appropriation 4
1161	1161	of at least the following amounts for State contributions: 5
1162	1162
1163	1163	(i) $5,000,000 in fiscal year 2018; and 6
1164	1164
1165	1165	(ii) $3,000,000 in fiscal year 2019 and each fiscal year thereafter. 7
1166	1166
1167	1167	(2) If the funding provided in a fiscal year is not sufficient to fully fund all 8
1168	1168	State contributions authorized under this section, the [Board] STATE TREASURER shall: 9
1169	1169
1170	1170	(i) Provide contributions in the order in which applications are 10
1171	1171	received; and 11
1172	1172
1173	1173	(ii) Give priority to applications of account holders who have not 12
1174	1174	received a contribution. 13
1175	1175
1176	1176	(e) (1) An account holder shall contribute at least the amount specified under 14
1177	1177	subsection (c) of this section on or before November 1 of each year in order to qualify for the 15
1178	1178	State contribution. 16
1179	1179
1180	1180	(2) A State contribution shall be made by December 31 of the calendar year 17
1181	1181	in which the account holder made the contribution. 18
1182	1182
1183	1183	(f) (1) An account holder is not eligible for the subtraction modification under 19
1184	1184	§ 10–208 of the Tax – General Article for any taxable year in which the account holder 20
1185	1185	receives a State contribution. 21
1186	1186
1187	1187	(2) An account holder may qualify for not more than $9,000 in State 22
1188	1188	contributions through the lifetime of the account holder. 23
1189	1189
1190	1190	(g) (1) The [Board] STATE TREASURER shall develop and implement by 24
1191	1191	September 1, 2018, an outreach and marketing plan to provide notification to individuals 25
1192	1192	about the availability of a State contribution. 26
1193	1193
1194	1194	(2) The outreach and marketing plan shall: 27
1195	1195
1196	1196	(i) Make use of a variety of marketing media, including billboards, 28
1197	1197	brochures, and electronic resources; and 29
1198	1198
1199	1199	(ii) Provide a centralized contact point for individuals to obtain 30
1200	1200	information about opening an account and the availability of a State contribution. 31
1201	1201	26 HOUSE BILL 1290
1202	1202
1203	1203
1204	1204	[(3) By December 1, 2018, the Board shall submit a report in accordance 1
1205	1205	with § 2–1257 of the State Government Article to the General Assembly on the details of 2
1206	1206	the outreach and marketing plan.] 3
1207	1207
1208	1208	(h) The [Board] STATE TREASURER may adopt any regulations that the [Board] 4
1209	1209	STATE TREASURER considers necessary to carry out the provisions of this section. 5
1210	1210
1211	1211	18–19A–05. 6
1212	1212
1213	1213	(a) (1) The debts, contracts, and obligations of the Plan are not the contracts, 7
1214	1214	debts, or obligations of the State and neither the faith and credit nor taxing power of the 8
1215	1215	State is pledged directly or indirectly or contingently, morally or otherwise, to the payment 9
1216	1216	of the debts, contracts, and obligations. 10
1217	1217
1218	1218	(2) The [Board] STATE TREASURER cannot directly or indirectly or 11
1219	1219	contingently obligate, morally or otherwise, the State to levy or pledge any form of taxation 12
1220	1220	whatsoever for the debts and obligations of the Plan or to make any appropriation for the 13
1221	1221	payment of the debts and obligations of the Plan. 14
1222	1222
1223	1223	(b) Neither the State nor any eligible educational institution shall be liable for 15
1224	1224	any losses or shortage of funds in the event that the account holder’s investment account 16
1225	1225	balance is insufficient to meet the tuition requirements of an institution attended by the 17
1226	1226	qualified designated beneficiary. 18
1227	1227
1228	1228	(c) Money of the Plan may not be considered money of the State or deposited in 19
1229	1229	the State Treasury. 20
1230	1230
1231	1231	(d) Money of the Plan may not be considered money of or commingled with the 21
1232	1232	Maryland Senator Edward J. Kasemeyer Prepaid College Trust. 22
1233	1233
1234	1234	(e) Money of the Plan may not be considered money of or commingled with the 23
1235	1235	Maryland Broker–Dealer College Investment Plan. 24
1236	1236
1237	1237	(f) Money of the Plan may not be considered money of or commingled with the 25
1238	1238	Maryland ABLE Program. 26
1239	1239
1240	1240	18–19A–05.1. 27
1241	1241
1242	1242	The [Board] MARYLAND 529 PROGRAM, Plan, and investment accounts issued 28
1243	1243	under this subtitle are not subject to the provisions of the Insurance Article. 29
1244	1244
1245	1245	18–19A–06. 30
1246	1246
1247	1247	The assets and income of the Maryland Senator Edward J. Kasemeyer College 31
1248	1248	Investment Plan are exempt from State and local taxation. 32
1249	1249	HOUSE BILL 1290 27
1250	1250
1251	1251
1252	1252	18–19A–06.1. 1
1253	1253
1254	1254	(a) In this section, “person” does not include the State. 2
1255	1255
1256	1256	(b) A person may not attach, execute, garnish, or otherwise seize any current or 3
1257	1257	future benefit under an investment account or any asset of the Plan. 4
1258	1258
1259	1259	18–19A–07. 5
1260	1260
1261	1261	(a) (1) The Legislative Auditor shall audit the Plan as provided under Title 2, 6
1262	1262	Subtitle 12 of the State Government Article. 7
1263	1263
1264	1264	(2) The [Board] STATE TREASURER shall obtain an annual audit report 8
1265	1265	from service providers. 9
1266	1266
1267	1267	(b) (1) Within 120 days after the close of each fiscal year, the [Board] STATE 10
1268	1268	TREASURER shall submit to the Governor and, subject to § 2–1257 of the State 11
1269	1269	Government Article, to the General Assembly a report including: 12
1270	1270
1271	1271	(i) A financial accounting of the Plan, including: 13
1272	1272
1273	1273	1. An annual review of the Plan which shall include: 14
1274	1274
1275	1275	A. The status of the investment program; 15
1276	1276
1277	1277	B. The assets held in each class of investment; 16
1278	1278
1279	1279	C. The percentage and dollar value of assets placed with 17
1280	1280	outside managers; 18
1281	1281
1282	1282	D. The income produced by each class of investment; 19
1283	1283
1284	1284	E. The income produced by each investment manager; 20
1285	1285
1286	1286	F. The total deposits into the Plan for the past year; and 21
1287	1287
1288	1288	G. The total withdrawals from the Plan for the past year; and 22
1289	1289
1290	1290	2. A detailed account of the operating and administrative 23
1291	1291	budget for the Plan, which shall include a complete list of revenue sources and expenditures 24
1292	1292	detailing the line item expenditures for: 25
1293	1293
1294	1294	A. Salaries, wages, and fringe benefits; 26
1295	1295
1296	1296	B. Technical and special fees; 27
1297	1297
1298	1298	C. Communication; 28 28 HOUSE BILL 1290
1299	1299
1300	1300
1301	1301
1302	1302	D. Travel; 1
1303	1303
1304	1304	E. Contractual services; 2
1305	1305
1306	1306	F. Supplies and materials; 3
1307	1307
1308	1308	G. Equipment; 4
1309	1309
1310	1310	H. Fixed charges; and 5
1311	1311
1312	1312	I. Other expenses; 6
1313	1313
1314	1314	(ii) The number of new account holders during the previous fiscal 7
1315	1315	year; 8
1316	1316
1317	1317	(iii) Efforts in marketing the Plan; and 9
1318	1318
1319	1319	(iv) Any recommendations of the [Board] STATE TREASURER 10
1320	1320	concerning the operation of the Plan. 11
1321	1321
1322	1322	(2) The [Board] STATE TREASURER shall make available to each account 12
1323	1323	holder a copy of a summary of the report and the option to purchase the full report at a 13
1324	1324	nominal charge. 14
1325	1325
1326	1326	[(c) The audit required by subsection (a)(2) of this section and the report required 15
1327	1327	by subsection (b) of this section, at the Board’s discretion, may be combined with any other 16
1328	1328	audit or report for the same fiscal year required to be submitted by the Board to the 17
1329	1329	Governor and the General Assembly.] 18
1330	1330
1331	1331	18–19B–01. 19
1332	1332
1333	1333	(a) In this subtitle the following words have the meanings indicated. 20
1334	1334
1335	1335	(b) “Account holder” means the person who established an investment account on 21
1336	1336	behalf of a qualified designated beneficiary. 22
1337	1337
1338	1338	(c) [“Board” means the Maryland 529 Board established under § 18–1904 of this 23
1339	1339	title. 24
1340	1340
1341	1341	(d)] “Broker–Dealer Plan” means the Maryland Broker –Dealer College 25
1342	1342	Investment Plan established under this subtitle. 26
1343	1343
1344	1344	[(e)] (D) “Eligible educational institution” has the meaning stated in § 529(e) of 27
1345	1345	the Internal Revenue Code. 28
1346	1346	HOUSE BILL 1290 29
1347	1347
1348	1348
1349	1349	[(f)] (E) “Investment account” means an account established by an account 1
1350	1350	holder under this subtitle on behalf of a qualified designated beneficiary for the purpose of 2
1351	1351	applying distributions toward qualified higher education expenses at eligible educational 3
1352	1352	institutions. 4
1353	1353
1354	1354	[(g)] (F) “Qualified designated beneficiary” has the meaning stated in § 529(e) 5
1355	1355	of the Internal Revenue Code. 6
1356	1356
1357	1357	[(h)] (G) “Qualified higher education expenses” has the meaning stated in § 7
1358	1358	529(e) of the Internal Revenue Code. 8
1359	1359
1360	1360	[(i)] (H) “Qualified State tuition program” has the meaning stated in § 529 of 9
1361	1361	the Internal Revenue Code. 10
1362	1362
1363	1363	18–19B–02. 11
1364	1364
1365	1365	(a) The [Board] STATE TREASURER may establish a Maryland Broker–Dealer 12
1366	1366	College Investment Plan. 13
1367	1367
1368	1368	(b) The purpose of the Broker–Dealer Plan is to provide for a broker–dealer 14
1369	1369	distributed vehicle that would allow contributions to an investment account established for 15
1370	1370	the purposes of meeting the qualified higher education expenses of the qualified designated 16
1371	1371	beneficiary of the account. 17
1372	1372
1373	1373	(c) (1) The [Board] STATE TREASURER shall administer, manage, and 18
1374	1374	promote the Broker–Dealer Plan. 19
1375	1375
1376	1376	(2) The [Board] STATE TREASURER shall administer the Broker–Dealer 20
1377	1377	Plan in compliance with Internal Revenue Service standards for qualified State tuition 21
1378	1378	programs. 22
1379	1379
1380	1380	(d) (1) The [Board] STATE TREASURER shall adopt procedures relating to: 23
1381	1381
1382	1382	(i) Enrollment procedures for participation in the Broker–Dealer 24
1383	1383	Plan; 25
1384	1384
1385	1385	(ii) Start–up costs incurred by the State for the development of the 26
1386	1386	Broker–Dealer Plan with these costs to be reimbursed to the State by the Broker–Dealer 27
1387	1387	Plan; 28
1388	1388
1389	1389	(iii) Early withdrawals so that there will be no major detriment to 29
1390	1390	the remaining account holders in the Broker–Dealer Plan; 30
1391	1391
1392	1392	(iv) Transfer of funds from the Broker–Dealer Plan to other qualified 31
1393	1393	State tuition programs and from other qualified State tuition programs to the 32
1394	1394	Broker–Dealer Plan in accordance with federal law; and 33 30 HOUSE BILL 1290
1395	1395
1396	1396
1397	1397
1398	1398	(v) Transfer of funds from the Broker–Dealer Plan to a qualified 1
1399	1399	ABLE program established in accordance with § 529A of the Internal Revenue Code. 2
1400	1400
1401	1401	(2) The [Board] STATE TREASURER shall adopt any other procedures 3
1402	1402	that the [Board] STATE TREASURER considers necessary to carry out the provisions of 4
1403	1403	this subtitle. 5
1404	1404
1405	1405	(e) At least annually, the [Board] STATE TREASURER shall issue to each 6
1406	1406	account holder a statement that provides a separate accounting for each qualified 7
1407	1407	designated beneficiary providing the following information with respect to each account: 8
1408	1408
1409	1409	(1) The beginning balance; 9
1410	1410
1411	1411	(2) Contributions to the account; 10
1412	1412
1413	1413	(3) Withdrawals from the account during the previous year; and 11
1414	1414
1415	1415	(4) Ending investment account value. 12
1416	1416
1417	1417	18–19B–03. 13
1418	1418
1419	1419	(a) (1) The [Board] STATE TREASURER may issue requests for proposals to 14
1420	1420	evaluate and determine the means for the administration, management, promotion, or 15
1421	1421	marketing of the Broker–Dealer Plan. 16
1422	1422
1423	1423	(2) The [Board] STATE TREASURER shall consider proposals that meet 17
1424	1424	the following criteria: 18
1425	1425
1426	1426	(i) Ability to develop and administer an investment program of a 19
1427	1427	nature similar to the objectives of the Broker–Dealer Plan; 20
1428	1428
1429	1429	(ii) Ability to administer financial programs with individual account 21
1430	1430	records and reporting; and 22
1431	1431
1432	1432	(iii) Ability to market the Broker–Dealer Plan to Maryland residents 23
1433	1433	and, at the [Board’s] STATE TREASURER’S discretion, nonresidents of Maryland. 24
1434	1434
1435	1435	(b) (1) The [Board] STATE TREASURER may require an initial enrollment fee 25
1436	1436	to be used for administrative costs of the Broker–Dealer Plan. 26
1437	1437
1438	1438	(2) The [Board] STATE TREASURER may require additional fees 27
1439	1439	associated with the expenses of the Broker–Dealer Plan. 28
1440	1440	HOUSE BILL 1290 31
1441	1441
1442	1442
1443	1443	(c) (1) Contributions to the Broker–Dealer Plan on behalf of a qualified 1
1444	1444	designated beneficiary may not exceed the maximum amount determined by the [Board] 2
1445	1445	STATE TREASURER to be in accordance with § 529 of the Internal Revenue Code. 3
1446	1446
1447	1447	(2) Contributions to the Broker–Dealer Plan may be made only in cash or 4
1448	1448	cash equivalents. 5
1449	1449
1450	1450	(3) The Broker–Dealer Plan shall include provisions for automatic 6
1451	1451	contributions. 7
1452	1452
1453	1453	(d) (1) The Broker–Dealer Plan: 8
1454	1454
1455	1455	(i) May be established as one or more separate plans as determined 9
1456	1456	by the [Board] STATE TREASURER; 10
1457	1457
1458	1458	(ii) If established by the [Board] STATE TREASURER, shall be 11
1459	1459	established in the form determined by the [Board] STATE TREASURER; 12
1460	1460
1461	1461	(iii) Shall be marketed and promoted under the name or names 13
1462	1462	determined by the [Board] STATE TREASURER; and 14
1463	1463
1464	1464	(iv) May be established as one or more trusts to be declared by the 15
1465	1465	[Board] STATE TREASURER. 16
1466	1466
1467	1467	(2) The Broker–Dealer Plan may be divided into multiple investment 17
1468	1468	options. 18
1469	1469
1470	1470	18–19B–04. 19
1471	1471
1472	1472	(a) A Maryland resident or, at the [Board’s] STATE TREASURER’S discretion, a 20
1473	1473	nonresident of Maryland may participate in and benefit from the Broker–Dealer Plan. 21
1474	1474
1475	1475	(b) Distributions shall be requested by the account holder. 22
1476	1476
1477	1477	18–19B–05. 23
1478	1478
1479	1479	(a) (1) The debts, contracts, and obligations of the Broker–Dealer Plan are not 24
1480	1480	the contracts, debts, or obligations of the State, and neither the faith and credit nor taxing 25
1481	1481	power of the State is pledged directly or indirectly or contingently, morally or otherwise, to 26
1482	1482	the payment of the debts, contracts, and obligations. 27
1483	1483
1484	1484	(2) The [Board] STATE TREASURER cannot directly or indirectly or 28
1485	1485	contingently obligate, morally or otherwise, the State to levy or pledge any form of taxation 29
1486	1486	whatsoever for the debts and obligations of the Broker–Dealer Plan or to make any 30
1487	1487	appropriation for the payment of the debts and obligations of the Broker–Dealer Plan. 31
1488	1488	32 HOUSE BILL 1290
1489	1489
1490	1490
1491	1491	(b) Neither the State nor any eligible educational institution shall be liable for 1
1492	1492	any losses or shortage of funds in the event that the account holder’s investment account 2
1493	1493	balance is insufficient to meet the tuition requirements of an institution attended by the 3
1494	1494	qualified designated beneficiary. 4
1495	1495
1496	1496	(c) Money of the Broker–Dealer Plan may not be considered money of the State 5
1497	1497	or deposited in the State Treasury. 6
1498	1498
1499	1499	(d) Money of the Broker–Dealer Plan may not be considered money of or 7
1500	1500	commingled with the Maryland Senator Edward J. Kasemeyer Prepaid College Trust. 8
1501	1501
1502	1502	(e) Money of the Broker–Dealer Plan may not be considered money of or 9
1503	1503	commingled with the Maryland Senator Edward J. Kasemeyer College Investment Plan. 10
1504	1504
1505	1505	(f) Money of the Broker–Dealer Plan may not be considered money of or 11
1506	1506	commingled with the Maryland ABLE Program. 12
1507	1507
1508	1508	18–19B–06. 13
1509	1509
1510	1510	(a) The [Board] MARYLAND 529 PROGRAM, the Broker–Dealer Plan, and the 14
1511	1511	investment accounts issued under this subtitle are not subject to the provisions of the 15
1512	1512	Insurance Article. 16
1513	1513
1514	1514	(b) The assets and income of the Maryland Broker–Dealer College Investment 17
1515	1515	Plan are exempt from State and local taxation. 18
1516	1516
1517	1517	18–19B–07. 19
1518	1518
1519	1519	(a) In this section, “person” does not include the State. 20
1520	1520
1521	1521	(b) A person may not attach, execute, garnish, or otherwise seize any current or 21
1522	1522	future benefit under an investment account or any asset of the Broker–Dealer Plan. 22
1523	1523
1524	1524	18–19B–08. 23
1525	1525
1526	1526	(a) The Legislative Auditor shall audit the Broker–Dealer Plan as provided under 24
1527	1527	Title 2, Subtitle 12 of the State Government Article. 25
1528	1528
1529	1529	(b) The [Board] STATE TREASURER shall obtain an annual audit report from 26
1530	1530	service provider(s) within six months of the end of such service provider’s reporting period. 27
1531	1531
1532	1532	18–19C–01. 28
1533	1533
1534	1534	(a) In this subtitle the following words have the meanings indicated. 29
1535	1535
1536	1536	(b) “ABLE account” means an account described under § 529A(e) of the Internal 30
1537	1537	Revenue Code. 31 HOUSE BILL 1290 33
1538	1538
1539	1539
1540	1540
1541	1541	(c) “ABLE account contributor” means an individual who contributes money to 1
1542	1542	an ABLE account described under § 529A(e) of the Internal Revenue Code. 2
1543	1543
1544	1544	(d) “ABLE account holder” means an individual who has established an account 3
1545	1545	described under § 529A(e) of the Internal Revenue Code and is the designated beneficiary 4
1546	1546	of the account. 5
1547	1547
1548	1548	(e) [“Board” means the Maryland 529 Board established under § 18–1904 of this 6
1549	1549	title. 7
1550	1550
1551	1551	(f)] “Designated beneficiary” means an individual described in § 529A(e) of the 8
1552	1552	Internal Revenue Code. 9
1553	1553
1554	1554	[(g)] (F) “Maryland ABLE Program” means a qualified ABLE program described 10
1555	1555	in § 529A(b) of the Internal Revenue Code. 11
1556	1556
1557	1557	[(h)] (G) “Qualified disability expenses” means expenses described in § 529A(e) 12
1558	1558	of the Internal Revenue Code. 13
1559	1559
1560	1560	18–19C–02. 14
1561	1561
1562	1562	(a) (1) The [Board] STATE TREASURER shall establish a Maryland ABLE 15
1563	1563	Program that shall be subject to the provisions of § 529A of the Internal Revenue Code. 16
1564	1564
1565	1565	(2) It is the goal of the State that the Maryland ABLE Program be fully 17
1566	1566	operational by October 1, 2017. 18
1567	1567
1568	1568	(b) The purpose of the Maryland ABLE Program is to: 19
1569	1569
1570	1570	(1) Encourage and assist individuals and families in saving private funds 20
1571	1571	to support individuals with disabilities to maintain health, independence, and quality of 21
1572	1572	life; and 22
1573	1573
1574	1574	(2) Provide secure funding for disability–related expenses on behalf of 23
1575	1575	designated beneficiaries with disabilities that will supplement, not supplant, benefits 24
1576	1576	provided through private insurance, the Medicaid program under Title XIX of the Social 25
1577	1577	Security Act, the Supplemental Security Income program under Title XVI of the Social 26
1578	1578	Security Act, the beneficiary’s employment, and any other source. 27
1579	1579
1580	1580	(c) (1) The [Board] STATE TREASURER shall develop, establish, administer, 28
1581	1581	manage, and promote the Maryland ABLE Program. 29
1582	1582
1583	1583	(2) The [Board] STATE TREASURER shall administer the Maryland 30
1584	1584	ABLE Program in compliance with Internal Revenue Service standards for qualified ABLE 31
1585	1585	programs. 32 34 HOUSE BILL 1290
1586	1586
1587	1587
1588	1588
1589	1589	(3) The [Board] STATE TREASURER shall work in consultation with the 1
1590	1590	Department of Disabilities to develop, administer, manage, and promote the Maryland 2
1591	1591	ABLE Program. 3
1592	1592
1593	1593	(4) The [Board] STATE TREASURER may collaborate and participate with 4
1594	1594	other states or entities to develop, administer, manage, and promote the Maryland ABLE 5
1595	1595	Program, including participating with a consortium of states that are implementing ABLE 6
1596	1596	programs in those states or as a consortium of states. 7
1597	1597
1598	1598	(d) (1) The [Board] STATE TREASURER shall adopt procedures relating to: 8
1599	1599
1600	1600	(i) Enrollment for participation in the Maryland ABLE Program; 9
1601	1601	and 10
1602	1602
1603	1603	(ii) Start–up costs incurred by the State for the development of the 11
1604	1604	Maryland ABLE Program with these costs to be reimbursed to the State by the Maryland 12
1605	1605	ABLE Program. 13
1606	1606
1607	1607	(2) The [Board] STATE TREASURER shall adopt any other procedures 14
1608	1608	that the [Board] STATE TREASURER considers necessary to carry out the provisions of 15
1609	1609	this subtitle. 16
1610	1610
1611	1611	(e) At least annually, the [Board] STATE TREASURER shall issue to each ABLE 17
1612	1612	account holder a statement that provides a separate accounting for each designated 18
1613	1613	beneficiary providing the following information with respect to each account: 19
1614	1614
1615	1615	(1) The beginning balance; 20
1616	1616
1617	1617	(2) Contributions to the account; 21
1618	1618
1619	1619	(3) Distributions from the account during the previous year; and 22
1620	1620
1621	1621	(4) Ending ABLE account value. 23
1622	1622
1623	1623	18–19C–03. 24
1624	1624
1625	1625	(a) (1) The [Board] STATE TREASURER may issue requests for proposals to 25
1626	1626	evaluate and determine the means for the administration, management, promotion, or 26
1627	1627	marketing of the Maryland ABLE Program. 27
1628	1628
1629	1629	(2) The [Board] STATE TREASURER shall consider proposals that meet 28
1630	1630	the following criteria: 29
1631	1631
1632	1632	(i) Ability to develop and administer an investment program of a 30
1633	1633	nature similar to the objectives of the Maryland ABLE Program; 31 HOUSE BILL 1290 35
1634	1634
1635	1635
1636	1636
1637	1637	(ii) Ability to administer financial programs with individual account 1
1638	1638	records and reporting; and 2
1639	1639
1640	1640	(iii) Ability to market the Maryland ABLE Program to eligible 3
1641	1641	individuals. 4
1642	1642
1643	1643	(b) (1) The [Board] STATE TREASURER may require an initial enrollment fee 5
1644	1644	to be used for administrative costs of the Maryland ABLE Program. 6
1645	1645
1646	1646	(2) The [Board] STATE TREASURER may require additional reasonable 7
1647	1647	fees associated with the expenses of the Maryland ABLE Program. 8
1648	1648
1649	1649	(c) (1) The Maryland ABLE Program is subject to the provisions of § 529A of 9
1650	1650	the Internal Revenue Code. 10
1651	1651
1652	1652	(2) The Maryland ABLE Program shall include provisions for automatic 11
1653	1653	contributions. 12
1654	1654
1655	1655	(3) Money and assets in the accounts established under the Maryland 13
1656	1656	ABLE Program or an ABLE program in any other state may not be considered for the 14
1657	1657	purpose of determining eligibility to receive, or the amount of, any assistance or benefits 15
1658	1658	from local or State means–tested programs. 16
1659	1659
1660	1660	(4) Money and assets contributed in each calendar year to the account of 17
1661	1661	each ABLE account holder may not exceed the amount specified in § 529A(b)(2) of the 18
1662	1662	Internal Revenue Code for each calendar year in which the taxable year begins. 19
1663	1663
1664	1664	(5) Contributions to the account of each ABLE account holder may not 20
1665	1665	exceed the maximum amount determined by the [Board] STATE TREASURER to be in 21
1666	1666	accordance with § 529A(b)(6) of the Internal Revenue Code. 22
1667	1667
1668	1668	(d) The Maryland ABLE Program may receive money from: 23
1669	1669
1670	1670	(1) Appropriations in the State budget; 24
1671	1671
1672	1672	(2) Reasonable fees assessed to beneficiaries; 25
1673	1673
1674	1674	(3) Grants or other assistance from federal, State, or local government; and 26
1675	1675
1676	1676	(4) Any other money from any public or private source. 27
1677	1677
1678	1678	(e) (1) The Maryland ABLE Program: 28
1679	1679
1680	1680	(i) May be established as one or more separate plans as determined 29
1681	1681	by the [Board] STATE TREASURER; 30
1682	1682	36 HOUSE BILL 1290
1683	1683
1684	1684
1685	1685	(ii) Shall be established in the form determined by the [Board] 1
1686	1686	STATE TREASURER; 2
1687	1687
1688	1688	(iii) Shall be marketed and promoted under the name or names 3
1689	1689	determined by the [Board] STATE TREASURER; and 4
1690	1690
1691	1691	(iv) May be established as one or more trusts to be declared by the 5
1692	1692	[Board] STATE TREASURER. 6
1693	1693
1694	1694	(2) The Maryland ABLE Program may be divided into multiple investment 7
1695	1695	options. 8
1696	1696
1697	1697	18–19C–04. 9
1698	1698
1699	1699	(a) An eligible individual, as defined in § 529A(e) of the Internal Revenue Code, 10
1700	1700	may participate in and benefit from the Maryland ABLE Program. 11
1701	1701
1702	1702	(b) Distributions shall be requested by the designated beneficiary subject to the 12
1703	1703	provisions of § 529A of the Internal Revenue Code. 13
1704	1704
1705	1705	18–19C–05. 14
1706	1706
1707	1707	(a) (1) The debts, contracts, and obligations of the Maryland ABLE Program 15
1708	1708	are not the contracts, debts, or obligations of the State, and neither the faith and credit nor 16
1709	1709	taxing power of the State is pledged directly or indirectly or contingently, morally or 17
1710	1710	otherwise, to the payment of the debts, contracts, and obligations. 18
1711	1711
1712	1712	(2) The [Board] STATE TREASURER may not directly or indirectly or 19
1713	1713	contingently obligate, morally or otherwise, the State to levy or pledge any form of taxation 20
1714	1714	whatsoever for the debts and obligations of the Maryland ABLE Program or to make any 21
1715	1715	appropriation for the payment of the debts and obligations of the Maryland ABLE Program. 22
1716	1716
1717	1717	(b) The State may not be liable for any losses or shortage of funds in the event 23
1718	1718	that the designated beneficiary’s ABLE account balance is insufficient to meet the 24
1719	1719	designated beneficiary’s qualified disability expenses. 25
1720	1720
1721	1721	(c) Money of the Maryland ABLE Program may not be considered money of the 26
1722	1722	State or deposited in the State Treasury. 27
1723	1723
1724	1724	(d) Money of the Maryland ABLE Program may not be considered money of or 28
1725	1725	commingled with the Maryland Senator Edward J. Kasemeyer Prepaid College Trust. 29
1726	1726
1727	1727	(e) Money of the Maryland ABLE Program may not be considered money of or 30
1728	1728	commingled with the Maryland Senator Edward J. Kasemeyer College Investment Plan. 31
1729	1729
1730	1730	(f) Money of the Maryland ABLE Program may not be considered money of or 32
1731	1731	commingled with the Maryland Broker–Dealer College Investment Plan. 33 HOUSE BILL 1290 37
1732	1732
1733	1733
1734	1734
1735	1735	18–19C–06. 1
1736	1736
1737	1737	(a) The [Board] MARYLAND 529 PROGRAM, the Maryland ABLE Program, and 2
1738	1738	the ABLE accounts issued under this subtitle are not subject to the provisions of the 3
1739	1739	Insurance Article. 4
1740	1740
1741	1741	(b) The assets and income of the Maryland ABLE Program are exempt from State 5
1742	1742	and local taxation. 6
1743	1743
1744	1744	18–19C–07. 7
1745	1745
1746	1746	(a) In this section, “person” does not include the State. 8
1747	1747
1748	1748	(b) A person may not attach, execute, garnish, or otherwise seize any current or 9
1749	1749	future benefit under an ABLE account or any asset of the Maryland ABLE Program. 10
1750	1750
1751	1751	18–19C–08. 11
1752	1752
1753	1753	(a) The Legislative Auditor shall audit the Maryland ABLE Program as provided 12
1754	1754	under Title 2, Subtitle 12 of the State Government Article. 13
1755	1755
1756	1756	(b) The [Board] STATE TREASURER shall obtain an annual audit report from a 14
1757	1757	service provider within 6 months of the end of the reporting period of the service provider. 15
1758	1758
1759	1759	18–19C–09. 16
1760	1760
1761	1761	(a) The [Board] STATE TREASURER shall issue refunds as specified in this 17
1762	1762	section. 18
1763	1763
1764	1764	(b) If the contribution of an ABLE account contributor under the Maryland ABLE 19
1765	1765	Program would result in aggregate contributions from all contributors to the ABLE account 20
1766	1766	for the taxable year exceeding the amount specified in § 529A(b)(2) of the Internal Revenue 21
1767	1767	Code for each calendar year in which the taxable year begins, the [Board] STATE 22
1768	1768	TREASURER shall issue a refund to the ABLE account contributor. 23
1769	1769
1770	1770	(c) The [Board] STATE TREASURER shall adopt procedures to ensure that 24
1771	1771	contributions to the account of each ABLE account holder do not exceed the total maximum 25
1772	1772	amount determined under § 529A(b)(6) of the Internal Revenue Code. 26
1773	1773
1774	1774	18–19C–10. 27
1775	1775
1776	1776	(a) Unless prohibited by federal law, on the death of a designated beneficiary, 28
1777	1777	money and assets in an ABLE account may be transferred to: 29
1778	1778
1779	1779	(1) The estate of the designated beneficiary; or 30 38 HOUSE BILL 1290
1780	1780
1781	1781
1782	1782
1783	1783	(2) An ABLE account for another eligible individual specified by the 1
1784	1784	designated beneficiary or the estate of the designated beneficiary. 2
1785	1785
1786	1786	(b) Unless required by federal law, an agency or instrumentality of the State may 3
1787	1787	not seek payment under § 529A(f) of the Internal Revenue Code from an ABLE account or 4
1788	1788	its proceeds for any amount of medical assistance paid for the designated beneficiary. 5
1789	1789
1790	1790	Article – State Finance and Procurement 6
1791	1791
1792	1792	11–203. 7
1793	1793
1794	1794	(f) Except as provided in Title 12, Subtitle 4 and Title 14, Subtitle 3 of this article, 8
1795	1795	this Division II does not apply to Maryland 529 for: 9
1796	1796
1797	1797	(1) services of managers to invest the assets of the Maryland Senator 10
1798	1798	Edward J. Kasemeyer Prepaid College Trust in accordance with the comprehensive 11
1799	1799	investment plan adopted by the [Maryland 529 Board] STATE TREASURER under § 12
1800	1800	18–1906 of the Education Article; and 13
1801	1801
1802	1802	(2) expenditures to manage, maintain, and enhance the value of the assets 14
1803	1803	of the Maryland Senator Edward J. Kasemeyer Prepaid College Trust in accordance with 15
1804	1804	the comprehensive investment plan adopted by the [Maryland 529 Board] STATE 16
1805	1805	TREASURER under § 18–1906 of the Education Article. 17
1806	1806
1807	1807	Article – State Government 18
1808	1808
1809	1809	9–803. 19
1810	1810
1811	1811	(a) The Commission consists of the following members: 20
1812	1812
1813	1813	(10) the Secretary of Higher Education, or the Secretary’s designee; [and] 21
1814	1814
1815	1815	(11) THE EXECUTIVE DIRECTOR OF THE MARYLAND 529 PROGRAM, 22
1816	1816	OR THE EXECUTIVE DIRECTOR’S DESIGNEE; AND 23
1817	1817
1818	1818	[(11)] (12) the following members, appointed by the Governor: 24
1819	1819
1820	1820	(i) one member of the Board of Trustees of the Maryland Teachers 25
1821	1821	and State Employees Supplemental Retirement Plans; 26
1822	1822
1823	1823	(ii) [one member of the Maryland 529 Board; 27
1824	1824
1825	1825	(iii)] one member of the Maryland State Education Association who 28
1826	1826	teaches a course involving principles of financial education; 29
1827	1827	HOUSE BILL 1290 39
1828	1828
1829	1829
1830	1830	[(iv)] (III) one representative of the Maryland CASH Campaign; 1
1831	1831
1832	1832	[(v)] (IV) one representative of a community–focused nonprofit 2
1833	1833	organization that provides free financial education in the State; 3
1834	1834
1835	1835	[(vi)] (V) one representative of a philanthropic organization that 4
1836	1836	provides funding for financial education in the State; 5
1837	1837
1838	1838	[(vii)] (VI) one representative of the Maryland Council on Economic 6
1839	1839	Education or the Maryland Coalition for Financial Literacy; 7
1840	1840
1841	1841	[(viii)] (VII) one representative of a bank, whether or not 8
1842	1842	State–chartered, that has a branch in the State; 9
1843	1843
1844	1844	[(ix)] (VIII) one representative of a credit union, whether or not 10
1845	1845	State–chartered, that has a branch in the State; 11
1846	1846
1847	1847	[(x)] (IX) one licensed mortgage broker holding the Maryland 12
1848	1848	Association of Mortgage Brokers’ “Lending Seal of Integrity”; 13
1849	1849
1850	1850	[(xi)] (X) one member of the Maryland Association of CPAs; and 14
1851	1851
1852	1852	[(xii)] (XI) one representative of a nonprofit organization in the State 15
1853	1853	that provides financial assistance and free financial education to State residents for 16
1854	1854	postsecondary education. 17
1855	1855
1856	1856	SECTION 2. AND BE IT FURTHER ENACTED, Th at: 18
1857	1857
1858	1858	(a) There is a Workgroup on the Maryland 529 Prepaid College Trust Program. 19
1859	1859
1860	1860	(b) The Workgroup consists of the following members: 20
1861	1861
1862	1862	(1) the State Treasurer; 21
1863	1863
1864	1864	(2) two Maryland 529 account holders who have experienced issues 22
1865	1865	accessing their funds, appointed by the Governor; 23
1866	1866
1867	1867	(3) two members of the Senate of Maryland, appointed by the President of 24
1868	1868	the Senate; and 25
1869	1869
1870	1870	(4) two members of the House of Delegates, appointed by the Speaker of 26
1871	1871	the House. 27
1872	1872
1873	1873	(c) The State Treasurer shall provide staff for the Workgroup. 28
1874	1874	40 HOUSE BILL 1290
1875	1875
1876	1876
1877	1877	(d) The Workgroup shall elect a chair of the Workgroup by a majority vote at the 1
1878	1878	first meeting. 2
1879	1879
1880	1880	(e) A member of the Workgroup: 3
1881	1881
1882	1882	(1) may not receive compensation as a member of the Workgroup; but 4
1883	1883
1884	1884	(2) is entitled to reimbursement for expenses under the Standard State 5
1885	1885	Travel Regulations, as provided in the State budget. 6
1886	1886
1887	1887	(f) The Workgroup shall: 7
1888	1888
1889	1889	(1) identify policies, procedures, and practices that led to issues relating to 8
1890	1890	the earnings calculation formula and Maryland 529 account holders’ inability to access 9
1891	1891	their prepaid college trust benefits to pay for college expenses; and 10
1892	1892
1893	1893	(2) develop and make recommendations for improvement in: 11
1894	1894
1895	1895	(i) the Maryland 529 policies, procedures, and practices to ensure 12
1896	1896	the prevention of similar issues in the future; 13
1897	1897
1898	1898	(ii) communication and transparency for Maryland 529 account 14
1899	1899	holders; and 15
1900	1900
1901	1901	(iii) accountability for the individuals responsible for properly 16
1902	1902	exercising Maryland 529’s fiduciary responsibility and managing the prepaid college trust 17
1903	1903	to meet its contractual obligations. 18
1904	1904
1905	1905	(g) On or before June 1, 2024, the Workgroup shall report its findings and 19
1906	1906	recommendations to the Governor and, in accordance with § 2 –1257 of the State 20
1907	1907	Government Article, the General Assembly. 21
1908	1908
1909	1909	SECTION 3. AND BE IT FURTHER ENACTED, That, on June 1, 2023, the 22
1910	1910	Maryland 529 Board is hereby abolished and the State Treasurer shall be the successor of 23
1911	1911	the Maryland 529 Board. 24
1912	1912
1913	1913	SECTION 4. AND BE IT FURTHER ENACTED, That: 25
1914	1914
1915	1915	(a) The responsibility for administering the Maryland 529 Program shall be 26
1916	1916	transferred to the Office of the State Treasurer on June 1, 2023. 27
1917	1917
1918	1918	(b) (1) All appropriations, including State and federal funds, held by the 28
1919	1919	agencies and units of the State to carry out the functions, programs, and services 29
1920	1920	transferred under this Act shall be transferred to the Office of the State Treasurer on June 30
1921	1921	1, 2023. 31
1922	1922	HOUSE BILL 1290 41
1923	1923
1924	1924
1925	1925	(2) Funding for the services and programs under the Maryland 529 1
1926	1926	Program shall be provided for the Office of the State Treasurer beginning in the fiscal year 2
1927	1927	2025 State budget. 3
1928	1928
1929	1929	(3) Federal fund grants directed to the State through other State agencies 4
1930	1930	shall be transferred to the Office of the State Treasurer on June 1, 2023. 5
1931	1931
1932	1932	(c) On June 1, 2023, all of the functions, powers, duties, books and records 6
1933	1933	(including electronic records), real and personal property, equipment, fixtures, assets, 7
1934	1934	liabilities, obligations, credits, rights, and privileges of the agencies, units, and entities that 8
1935	1935	are transferred under this Act shall be transferred to the Office of the State Treasurer. 9
1936	1936
1937	1937	SECTION 5. AND BE IT FURTHER ENACTED, That all employees who are 10
1938	1938	transferred to the Office of the State Treasurer as a result of this Act shall be transferred 11
1939	1939	without diminution of their rights, benefits, employment, or retirement status. 12
1940	1940
1941	1941	SECTION 6. AND BE IT FURTHER ENACTED, That, except as expressly provided 13
1942	1942	to the contrary in this Act, any transaction affected by or flowing from any statute added, 14
1943	1943	amended, repealed, or transferred under this Act and validly entered into before the 15
1944	1944	effective date of this Act, and every right, duty, or interest flowing from it remains valid 16
1945	1945	after the effective date of this Act and may be terminated, completed, consummated, or 17
1946	1946	enforced under the law. 18
1947	1947
1948	1948	SECTION 7. AND BE IT FURTHER ENACTED, That, except as otherwise provided 19
1949	1949	by law, all existing laws, regulations, proposed regulations, standards and guidelines, 20
1950	1950	policies, orders and other directives, forms, plans, memberships, contracts, property, 21
1951	1951	investigations, administrative and judicial responsibilities, rights to sue and be sued, and 22
1952	1952	all other duties and responsibilities associated with the functions of the agencies and units 23
1953	1953	that are subjects of this Act prior to the effective date of this Act shall continue in effect 24
1954	1954	under and, as appropriate, are legal and binding on the State Treasurer until completed, 25
1955	1955	withdrawn, canceled, modified, or otherwise changed. 26
1956	1956
1957	1957	SECTION 8. AND BE IT FURTHER ENACTE D, That the regulations regarding the 27
1958	1958	Maryland 529 Program that were adopted before June 1, 2023, by the Maryland 529 Board 28
1959	1959	that do not conflict with the provisions of this Act continue to be in force and effect unless 29
1960	1960	otherwise altered by the State Treasurer. 30
1961	1961
1962	1962	SECTION 9. AND BE IT FURTHER ENACTED, That , as provided in this Act: 31
1963	1963
1964	1964	(a) The State Treasurer is the successor of the Maryland 529 Board. 32
1965	1965
1966	1966	(b) In every law, executive order, rule, regulation, policy, or document created by 33
1967	1967	an official, an employee, or a unit of this State, the names and titles of those agencies and 34
1968	1968	officials mean the names and titles of the successor agency or official. 35
1969	1969
1970	1970	SECTION 10. AND BE IT FURTHER ENACTED, That any transaction or 36
1971	1971	employment status affected by or flowing from any change of nomenclature or any statute 37 42 HOUSE BILL 1290
1972	1972
1973	1973
1974	1974	amended by this Act and validly entered into or existing before the effective date of this Act 1
1975	1975	and every right, duty, or interest flowing from a statute amended by this Act remains valid 2
1976	1976	after the effective date of this Act and may be terminated, completed, consummated, or 3
1977	1977	enforced as required or allowed by any statute amended by this Act as though the 4
1978	1978	amendment had not occurred. If a change in nomenclature involves a change in name or 5
1979	1979	designation of any State unit, the successor unit shall be considered in all respects as 6
1980	1980	having the powers and obligations granted to the former unit. 7
1981	1981
1982	1982	SECTION 11. AND BE IT FURTHER ENACTED, That: 8
1983	1983
1984	1984	(a) The continuity of every commission, office, department, agency, or other unit 9
1985	1985	is retained. 10
1986	1986
1987	1987	(b) The personnel, records, files, furniture, fixtures, and other properties and all 11
1988	1988	appropriations, credits, assets, liabilities, and obligations of each retained unit are 12
1989	1989	continued as the personnel, records, files, furniture, fixtures, properties, appropriations, 13
1990	1990	credits, assets, liabilities, and obligations of the unit under the laws enacted by this Act. 14
1991	1991
1992	1992	SECTION 12. AND BE IT FURTHER ENACTED, That: 15
1993	1993
1994	1994	(a) The balance of a Maryland Senator Edward J. Kasemeyer Prepaid College 16
1995	1995	Trust account, following the distribution in accordance with Section 1 of this Act, is an 17
1996	1996	accurate allocation of principal and earnings of that account. 18
1997	1997
1998	1998	(b) The distribution to the account in accordance with Section 1 of this Act may 19
1999	1999	not be considered a contribution to the account for purposes of provisions of law governing 20
2000	2000	the Maryland income tax. 21
2001	2001
2002	2002	SECTION 13. AND BE IT FURTHER ENACTED, That the publisher of the 22
2003	2003	Annotated Code of Maryland, in consultation with and subject to the approval of the 23
2004	2004	Department of Legislative Services, shall correct, with no further action required by the 24
2005	2005	General Assembly, cross–references and terminology rendered incorrect by this Act. The 25
2006	2006	publisher shall adequately describe any correction that is made in an editor’s note following 26
2007	2007	the section affected. 27
2008	2008
2009	2009	SECTION 14. AND BE IT FURTHER ENACTED, That this Act is an emergency 28
2010	2010	measure, is necessary for the immediate preservation of the public health or safety, has 29
2011	2011	been passed by a yea and nay vote supported by three–fifths of all the members elected to 30
2012	2012	each of the two Houses of the General Assembly, and shall take effect from the date it is 31
2013	2013	enacted. 32
2014	2014