SB 6087 — Modifying the Washington advanced college tuition payment and college savings programs.

S-3492.1SENATEENGROSSED SENATE BILL 6087State of Washington65th Legislature2018 Regular SessionBy Senators Mullet, Palumbo, Carlyle, Braun, Kuderer, Dhingra, Pedersen, Takko, McCoy, Liias, and ConwayPrefiled 01/05/18.

and amending RCW 28B.95.020, 28B.95.030, and 28B.95.045.BE28B.95.045; IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:Sec. 1.  RCW 28B.95.020 and 2016 c 69 s 2 are each amended to read as follows:The definitions in this section apply throughout this chapter, unless the context clearly requires otherwise.(1) "Academic year" means the regular nine-month, three-quarter, or two-semester period annually occurring between August 1st and July 31st.(2) "Account" means the Washington advanced college tuition payment program account established for the deposit of all money received by the office from eligible purchasers and interest earnings on investments of funds in the account, as well as for all expenditures on behalf of eligible beneficiaries for the redemption of tuition units and for the development of any authorized college savings program pursuant to RCW 28B.95.150.(3) "Advisor sold" means a channel through which a broker dealer, investment advisor, or other financial intermediary recommends the Washington college savings program established pursuant to RCW 28B.95.010 to eligible investors and assists with the opening and servicing of individual college savings program accounts.(4) "College savings program account" means the Washington college savings program account established pursuant to RCW ((28B.95.010)) 28B.95.085.(5) "Committee on advanced tuition payment and college savings" or "committee" means a committee of the following members:

providing an effective date;

and declaring an emergency.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:Sec. 1.  RCW 28B.95.020 and 2016 c 69 s 2 are each amended to read as follows:The definitions in this section apply throughout this chapter, unless the context clearly requires otherwise.(1) "Academic year" means the regular nine-month, three-quarter, or two-semester period annually occurring between August 1st and July 31st.(2) "Account" means the Washington advanced college tuition payment program account established for the deposit of all money received by the office from eligible purchasers and interest earnings on investments of funds in the account, as well as for all expenditures on behalf of eligible beneficiaries for the redemption of tuition units and for the development of any authorized college savings program pursuant to RCW 28B.95.150.(3) "Advisor sold" means a channel through which a broker dealer, investment advisor, or other financial intermediary recommends the Washington college savings program established pursuant to RCW 28B.95.010 to eligible investors and assists with the opening and servicing of individual college savings program accounts.(4) "College savings program account" means the Washington college savings program account established pursuant to RCW ((28B.95.010)) 28B.95.085.(5) "Committee on advanced tuition payment and college savings" or "committee" means a committee of the following members:

For purposes of this chapter, services and activities fees do not include fees charged for the payment of bonds heretofore or hereafter issued for, or other indebtedness incurred to pay, all or part of the cost of acquiring, constructing, or installing any lands, buildings, or facilities.(22) "Tuition unit contract" means a contract between an eligible purchaser and the governing body, or a successor agency appointed for administration of this chapter, for the purchase of tuition units in the advanced college tuition payment program for a specified beneficiary that may be redeemed at a later date for an equal number of tuition units, except as provided in RCW 28B.95.030 (7) and (8).(23) "Unit cash value price" means the total value of assets under management in the advanced college tuition payment program inon whicha eligibledate purchasersto openedbe accountsdetermined beforeby Julythe 1,committee, 2015, divided by the total number of outstanding credits purchased by eligible purchasers thatbefore openedJuly accounts1, before2015, and any outstanding credits accrued by eligible purchasers as a result of the July 1,2017 2015.(24)unit rebase.(24) "Unit purchase price" means the minimum cost to purchase one tuition unit in the advanced college tuition payment program for an eligible beneficiary.

The governing body must notify holders of tuition units after the adjustment in this subsection is made and must include a statement concerning the adjustment.(8) The governing body shall allow eligibleaccount purchasersowners who purchased units before July 1, 2015, to redeem such units at the unit cash value price purchased before June 30, 2015, provided that all of the redeemed funds are deposited immediately into an eligible Washington college savings program account established by the governing body.

EligibleWithin ninety days of the effective date of this section, the committee, in consultation with the state actuary and state investment board, shall:(a) Establish a period that is not less than ninety days during which eligible purchasers may redeem units at the unit cash value price for the firstpurposes sixof monthsthis aftersubsection theand effectiveprovide dateat ofleast thisthirty section.(9)days' Thenotice governingprior bodyto shallthe promote,ninety-day advertise,window andto publicizeall theeligible Washingtonaccount advancedholders collegeabout tuitionthe paymentredemption program.option;

and(b) Establish the unit cash value price.

The committee, in consultation with the state actuary and the state investment board, may revalue the unit cash value price established in this subsection (8)(b) up to three times during the ninety-day period in which eligible purchasers may redeem units for the unit cash value price.(9) The governing body shall promote, advertise, and publicize the Washington advanced college tuition payment program.

and(m) Perform all acts necessary and proper to carry out the duties and responsibilities of this program under this chapter.Sec. 3.  RCW 28B.95.045 and 2016 c 69 s 6 are each amended to read as follows:(1) The committee shall create an expedited process by which owners can complete a direct rollover or investment change of a 529 account from (a)a:(a) a((a)) state-sponsoredState-sponsored prepaid tuition plan to a state-sponsored college savings plan,plan((,));(b) (b)((a)) aState-sponsored state-sponsored college savings plan to a state-sponsored prepaid tuition plan,plan((,)); or (c) a state-sponsored prepaid tuition plan or a state-sponsored college savings plan to an out-of-state eligible 529 plan.

Ownersor(c) may((a)) onlyState-sponsored rollprepaid overtuition unitsplan purchasedor ina thestate-sponsored Washingtoncollege advancedsavings collegeplan tuitionto paymentan programout-of-state ateligible 529 plan.(2) The committee shall report annually to the unitgovernor cashand valuethe priceappropriate whencommittees of the fundslegislature areon deposited(a) immediatelythe number of accounts that have been rolled into anthe eligibleWashington college savings program from out of state and (b) the number of accounts rolled out of the Washington college savings program accountto 529 plans into other states.NEW SECTION.  Sec. 4.  This act is necessary for sixthe monthsimmediate afterpreservation of the effectivepublic datepeace, health, or safety, or support of thisthe section.state government and its existing public institutions, and takes effect April 15, 2018.--- END ---

Credits may not be distributed at the unit cash value price when deposited into an out-of-state eligible 529 plan.(2) The committee shall report annually to the governor and the appropriate committees of the legislature on (a) the number of accounts that have been rolled into the Washington college savings program from out of state and (b) the number of accounts rolled out of the Washington college savings program to 529 plans into other states.--- END ---