South Dakota 2025 Regular Session

South Dakota House Bill HB1001 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	25.277.10 100th Legislative Session 1001
	1	+	25.277.9 100th Legislative Session 1001
2	2
3	3
4	4		2025 South Dakota Legislature
5	5		House Bill 1001
6		-	ENROLLED
7		-
8		-	AN ACT
9		-
10		-
11		-	ENTITLED An Act to update a reference to the Internal Revenue Code for purposes
12		-	of higher education savings plans.
13		-	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
14		-	Section 1. That § 13-63-1 be AMENDED:
15		-	13-63-1. Terms used in this chapter mean:
16		-	(1) "Account," an account established as prescribed in this chapter;
17		-	(2) "Account owner," the person who, under this chapter or rules promulgated by the
18		-	council pursuant to chapter 1-26, is entitled to select or change the designated
19		-	beneficiary of an account, to designate any person other than the designated
20		-	beneficiary to whom funds may be paid from the account, or to receive distributions
21		-	from the account if no such other person is designated;
22		-	(3) "Cash," currency, bills, and coins in circulation. A negotiable instrument may be
23		-	converted to cash if properly endorsed and presented to a financial institution for
24		-	deposit. An automatic transfer, cashier's check, certified check, money order,
25		-	payroll deposit, traveler's check, personal check, and wire transfer may also be
26		-	converted to cash if presented to a financial institution for deposit;
27		-	(4) "Contribution," any payment directly allocated to an account for the benefit of a
28		-	designated beneficiary or used to pay late fees or administrative fees associated
29		-	with an account, and that portion of any rollover amount treated as a contribution
30		-	under section 529 of the Internal Revenue Code;
31		-	(5) "Contributor," any person making a contribution to an account;
32		-	(6) "Council," the South Dakota Investment Council;
33		-	(7) "Designated beneficiary," except as provided in § 13-63-25, the individual
34		-	designated at the time the account is opened as the individual whose higher
35		-	education expenses are expected to be paid from the account or, if this designated 25.277.10 2 1001
36		-	HB1001 ENROLLED
37		-	beneficiary is replaced in accordance with § 13-63-12, 13-63-13, or 13-63-14, the
38		-	replacement beneficiary;
39		-	(8) "Eligible education institution," as defined in section 529(e)(5) of the Internal
40		-	Revenue Code;
41		-	(9) "Financial institution," any bank, commercial bank, national bank, savings bank,
42		-	savings and loan association, credit union, an insurance company, brokerage firm,
43		-	or other similar entity that is authorized to do business in this state;
44		-	(10) "Investment direction," specifying or attempting to specify the particular financial
45		-	instruments or ownership interests either individually, or within a fund family or
46		-	other group of financial instruments or ownership interests held as an investment
47		-	group, into which the contributions or earnings are invested. Selecting an initial
48		-	type of investment program if more than one program is offered does not constitute
49		-	an investment direction;
50		-	(11) "Internal Revenue Code," the United States Internal Revenue Code (January 1,
51		-	2025);
52		-	(12) "Member of the family," as defined in section 529(e)(2) of the Internal Revenue
53		-	Code;
54		-	(13) "Person," an individual, a corporation, a partnership, a trust or estate, a joint-stock
55		-	company, an association, or a syndicate, group, pool, joint venture, or other
56		-	unincorporated organization or group;
57		-	(14) "Program," the higher education savings program established under this chapter;
58		-	(15) "Program manager," any financial institution selected by the council to act as the
59		-	depository and manager for an account;
60		-	(16) "Qualified higher education expenses," as defined in section 529(e)(3) of the
61		-	Internal Revenue Code;
62		-	(17) "Qualified tuition program," as defined in section 529(b) of the Internal Revenue
63		-	Code; and
64		-	(18) "Rollover," a disbursement or transfer from an account of a designated beneficiary
65		-	that is transferred to or deposited within sixty days into an account of the same
66		-	designated beneficiary or another individual who is a member of the family of the
67		-	designated beneficiary, if the transferee account was created under this chapter or
68		-	under a qualified tuition program maintained by another state in accordance with
69		-	section 529 of the Internal Revenue Code, or any other rollover allowed by section
70		-	529 of the Internal Revenue Code. 25.277.10 3 1001
71		-	HB1001 ENROLLED
72		-	An Act to update a reference to the Internal Revenue Code for purposes of higher education
73		-	savings plans.
74		-
75		-
76		-
77		-
78		-	I certify that the attached Act originated in
79		-	the:
80		-
81		-	House as Bill No. 1001
82		-
83		-
84		-
85		-	Chief Clerk
86		-
87		-
88		-
89		-
90		-	Speaker of the House
91		-
92		-	Attest:
93		-
94		-
95		-
96		-
97		-	Chief Clerk
98		-
99		-
100		-
101		-
102		-	President of the Senate
103		-
104		-	Attest:
105	6
106	7
107	8
108	9
109	10
110		-	Secretary of the Senate
111	11
	12	+	Introduced by: The Chair of the Committee on State Affairs at the request of the State Investment Council
112	13
113		-
114		-	House Bill No. 1001
115		-	File No. ____
116		-	Chapter No. ______
117		-
118		-
119		-
120		-	Received at this Executive Office
121		-	this _____ day of _____________,
122		-
123		-	2025 at ____________M.
124		-
125		-
126		-
127		-	By
128		-	for the Governor
129		-
130		-
131		-	The attached Act is hereby
132		-	approved this ________ day of
133		-	______________, A.D., 2025
134		-
135		-
136		-
137		-
138		-
139		-	Governor
140		-
141		-	STATE OF SOUTH DAKOTA ,
142		-	ss.
143		-	Office of the Secretary of State
144		-
145		-
146		-	Filed ____________, 2025
147		-	at _________ o'clock __M.
148		-
149		-
150		-
151		-
152		-
153		-	Secretary of State
154		-
155		-
156		-
157		-	By
158		-	Asst. Secretary of State
159		-
160		-
	14	+	Underscores indicate new language.
	15	+	Overstrikes indicate deleted language.
	16	+	An Act to update a reference to the Internal Revenue Code for purposes of higher 1
	17	+	education savings plans. 2
	18	+	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3
	19	+	Section 1. That § 13-63-1 be AMENDED: 4
	20	+	13-63-1. Terms used in this chapter mean: 5
	21	+	(1) "Account," an account established as prescribed in this chapter; 6
	22	+	(2) "Account owner," the person who, under this chapter or rules promulgated by the 7
	23	+	council pursuant to chapter 1-26, is entitled to select or change the designated 8
	24	+	beneficiary of an account, to designate any person other than the designated 9
	25	+	beneficiary to whom funds may be paid from the account, or to receive distributions 10
	26	+	from the account if no such other person is designated; 11
	27	+	(3) "Cash," currency, bills, and coins in circulation. A negotiable instrument may be 12
	28	+	converted to cash if properly endorsed and presented to a financial institution for 13
	29	+	deposit. An automatic transfer, cashier's check, certified check, money order, 14
	30	+	payroll deposit, traveler's check, personal check, and wire transfer may also be 15
	31	+	converted to cash if presented to a financial institution for deposit; 16
	32	+	(4) "Contribution," any payment directly allocated to an account for the benefit of a 17
	33	+	designated beneficiary or used to pay late fees or administrative fees associated 18
	34	+	with an account, and that portion of any rollover amount treated as a contribution 19
	35	+	under section 529 of the Internal Revenue Code; 20
	36	+	(5) "Contributor," any person making a contribution to an account; 21
	37	+	(6) "Council," the South Dakota Investment Council; 22
	38	+	(7) "Designated beneficiary," except as provided in § 13-63-25, the individual 23
	39	+	designated at the time the account is opened as the individual whose higher 24
	40	+	education expenses are expected to be paid from the account or, if this designated 25 25.277.9 2 1001
	41	+	Underscores indicate new language.
	42	+	Overstrikes indicate deleted language.
	43	+	beneficiary is replaced in accordance with § 13-63-12, 13-63-13, or 13-63-14, the 1
	44	+	replacement beneficiary; 2
	45	+	(8) "Eligible education institution," as defined in section 529(e)(5) of the Internal 3
	46	+	Revenue Code; 4
	47	+	(9) "Financial institution," any bank, commercial bank, national bank, savings bank, 5
	48	+	savings and loan association, credit union, an insurance company, brokerage firm, 6
	49	+	or other similar entity that is authorized to do business in this state; 7
	50	+	(10) "Investment direction," specifying or attempting to specify the particular financial 8
	51	+	instruments or ownership interests either individually, or within a fund family or 9
	52	+	other group of financial instruments or ownership interests held as an investment 10
	53	+	group, into which the contributions or earnings are invested. Selecting an initial 11
	54	+	type of investment program if more than one program is offered does not constitute 12
	55	+	an investment direction; 13
	56	+	(11) "Internal Revenue Code," the United States Internal Revenue Code, as amended 14
	57	+	and in effect on (January 1, 2024 2025); 15
	58	+	(12) "Member of the family," as defined in section 529(e)(2) of the Internal Revenue 16
	59	+	Code; 17
	60	+	(13) "Person," an individual, a corporation, a partnership, a trust or estate, a joint-stock 18
	61	+	company, an association, or a syndicate, group, pool, joint venture, or other 19
	62	+	unincorporated organization or group; 20
	63	+	(14) "Program," the higher education savings program established under this chapter; 21
	64	+	(15) "Program manager," any financial institution selected by the council to act as the 22
	65	+	depository and manager for an account; 23
	66	+	(16) "Qualified higher education expenses," as defined in section 529(e)(3) of the 24
	67	+	Internal Revenue Code; 25
	68	+	(17) "Qualified tuition program," as defined in section 529(b) of the Internal Revenue 26
	69	+	Code; and 27
	70	+	(18) "Rollover," a disbursement or transfer from an account of a designated beneficiary 28
	71	+	that is transferred to or deposited within sixty days into an account of the same 29
	72	+	designated beneficiary or another individual who is a member of the family of the 30
	73	+	designated beneficiary, if the transferee account was created under this chapter or 31
	74	+	under a qualified tuition program maintained by another state in accordance with 32
	75	+	section 529 of the Internal Revenue Code, or any other rollover allowed by section 33
	76	+	529 of the Internal Revenue Code. 34