History: L. 1879, ch. 166, § 48; L. 1923, ch. 223, § 1; R.S. 1923, 75-601; L. 1967, ch. 434, § 46; July 1.
History: L. 1879, ch. 166, § 49; R.S. 1923, 75-602; Repealed, L. 1974, ch. 294, § 13; July 1.
History: L. 1879, ch. 166, § 50; March 20; R.S. 1923, 75-603.
History: R.S. 1923, 75-604; Dec. 27.
History: L. 1879, ch. 166, § 52; R.S. 1923, 75-605; Repealed, L. 1953, ch. 375, § 95; July 1.
History: L. 1879, ch. 166, § 53; L. 1903, ch. 53, § 1 (Special Session); R.S. 1923, 75-606; L. 1970, ch. 64, § 88; L. 1981, ch. 324, § 24; Jan. 1, 1982.
History: L. 1879, ch. 166, § 54; March 20; R.S. 1923, 75-607.
History: L. 1879, ch. 166, § 55; R.S. 1923, 75-608; L. 1943, ch. 269, § 18; L. 1968, ch. 143, § 1; L. 1969, ch. 310, § 56; July 1.
History: L. 1879, ch. 166, § 56; March 20; R.S. 1923, 75-609.
History: L. 1879, ch. 166, § 57; March 20; R.S. 1923, 75-610.
History: L. 1879, ch. 166, § 58; R.S. 1923, 75-611; L. 1974, ch. 364, § 13; Jan. 13, 1975.
History: L. 1879, ch. 166, § 59; R.S. 1923, 75-612; L. 1933, ch. 112, § 1 (Special Session); L. 1953, ch. 375, § 66; L. 1972, ch. 332, § 46; Repealed, L. 1974, ch. 364, § 40; Jan. 13, 1975.
History: L. 1972, ch. 332, § 26; Repealed, L. 1974, ch. 364, § 40; Jan. 13, 1975.
History: L. 1879, ch. 166, § 60; R.S. 1923, 75-613; Repealed, L. 1976, ch. 371, § 1; July 1.
History: L. 1879, ch. 166, § 61; R.S. 1923, 75-614; L. 1953, ch. 375, § 67; Repealed, L. 1976, ch. 371, § 1; July 1.
History: L. 1879, ch. 166, § 62; R.S. 1923, 75-615; L. 1943, ch. 277, § 9; Repealed, L. 1976, ch. 371, § 1; July 1.
History: R.S. 1923, 75-616; Repealed, L. 1969, ch. 180, § 21-4701; July 1, 1970.
History: L. 1879, ch. 166, § 64; R.S. 1923, 75-617; Repealed, L. 1969, ch. 180, § 21-4701; July 1, 1970.
History: L. 1879, ch. 166, § 65; R.S. 1923, 75-618; Repealed, L. 1953, ch. 375, § 95; July 1.
History: L. 1879, ch. 166, § 66; March 20; R.S. 1923, 75-619.
History: L. 1879, ch. 166, § 67; R.S. 1923, 75-620; Repealed, L. 1953, ch. 375, § 95; July 1.
History: L. 1879, ch. 166, § 68; March 20; R.S. 1923, 75-621.
History: R.S. 1923, 75-622; L. 1967, ch. 434, § 47; L. 1996, ch. 254, § 11; May 23.
History: R.S. 1923, 75-623; L. 1967, ch. 434, § 48; July 1.
(b) Nothing in this section shall affect the status of being in the classified service of any person employed in the office of state treasurer on the date immediately preceding the effective date of this act.
History: L. 2000, ch. 18, § 1; Mar. 30.
History: R.S. 1923, 75-624; Repealed, L. 1953, ch. 375, § 95; July 1.
History: R.S. 1923, 75-625; Repealed, L. 1953, ch. 375, § 95; July 1.
History: L. 1981, ch. 299, § 29; Repealed, L. 1992, ch. 116, § 54; July 1.
History: L. 1992, ch. 146, § 9; L. 1993, ch. 10, § 3; Repealed, L. 1998, ch. 161, § 6; May 21.
(b) As used in this section, "state agency" shall have the meaning ascribed to such term under K.S.A. 75-3701 and amendments thereto.
(c) Nothing in this section shall be construed as affecting the current powers and duties of the director of accounts and reports or director of the budget.
History: L. 1992, ch. 146, § 26; July 1.
History: L. 1999, ch. 154, § 11; May 27.
History: L. 1999, ch. 154, § 12; May 27.
(a) Enable residents of this state and other states to benefit from the tax incentive provided for qualified state tuition programs as defined in section 529 of the federal internal revenue code of 1986, as amended; and
(b) attract residents of this state to institutions of postsecondary education.
History: L. 1999, ch. 154, § 13; May 27.
(a) "Account" or "family postsecondary education savings account" means an individual savings account established in accordance with the provisions of K.S.A. 2007 Supp. 75-640 to 75-648, and amendments thereto.
(b) "Account owner" means the person or persons who enter into a postsecondary education savings agreement pursuant to the provisions of K.S.A. 2007 Supp. 75-640 to 75-648, and amendments thereto. If the account is owned by one individual, the account owner may also be the designated beneficiary of the account.
(c) "Designated beneficiary" means, with respect to an account, the individual designated at the time the account is established as the individual whose higher education expenses are expected to be paid from the account or in the case of a change in beneficiaries, the individual who is the new beneficiary.
(d) "Financial organization" means an organization authorized to do business in the state of Kansas and (1) which is an authorized fiduciary to act as a trustee pursuant to the provisions of the federal employee retirement income security act of 1974, an insurance company, or a registered investment advisor; and (2) (A) is licensed or chartered by the commissioner of insurance, (B) is licensed or chartered by the state bank commissioner, (C) is chartered by an agency of the federal government, (D) is subject to the jurisdiction and regulation of the securities and exchange commission of the federal government, or (E) is any other entity otherwise authorized to act in this state as a trustee pursuant to the provisions of the federal employee retirement income security act of 1974.
(e) "Institution of postsecondary education" means any institution of postsecondary education which is accredited by a nationally recognized accrediting agency or association, offers credit toward an undergraduate or graduate degree or other recognized postsecondary education credential, and qualifies as an eligible institution for federal student aid programs.
(f) "Member of the family" has the meaning ascribed thereto in section 529 of the federal internal revenue code of 1986, as amended.
(g) "Program" means the Kansas postsecondary education savings program established pursuant to K.S.A. 2007 Supp. 75-640 to 75-648, and amendments thereto.
(h) "Qualified higher education expenses" means any qualified higher education expense included in section 529 of the federal internal revenue code of 1986, as amended.
(i) "Qualified withdrawal" means a withdrawal from an account to pay the qualified higher education expenses of the designated beneficiary of the account.
(j) "Nonqualified withdrawal" means a withdrawal from an account but does not mean:
(1) A qualified withdrawal;
(2) a withdrawal made as the result of the death or disability of the designated beneficiary of an account;
(3) a withdrawal made on the account of a scholarship received by the designated beneficiary to the extent the amount of the withdrawal does not exceed the amount of the scholarship; or
(4) a rollover distribution.
(k) "Rollover distribution" means a rollover distribution as defined in section 529 of the federal internal revenue code of 1986, as amended, and regulations thereunder.
(l) "Treasurer" means the state treasurer.
(m) "Management contract" means the contract executed by the treasurer and a financial organization selected to act as a depository and manager of the program.
(n) "Postsecondary education savings agreement" means an agreement between the state treasurer and the account owner or owners.
(o) "Program manager" means a financial organization selected by the treasurer to act as a depository and manager of the program.
History: L. 1999, ch. 154, § 14; L. 2000, ch. 23, § 1; Mar. 30.
(b) In furtherance of such implementation and administration, the state treasurer shall have the authority and responsibility to:
(1) Develop and implement the program in a manner consistent with the provisions of K.S.A. 2007 Supp. 75-640 to 75-648, and amendments thereto through adoption of rules and regulations;
(2) engage the services of consultants on a contract basis for rendering professional and technical assistance and advice;
(3) seek rulings and other guidance from the United States department of treasury and the federal internal revenue service relating to the program;
(4) make changes to the program required for the participants in the program to obtain the federal income tax benefits or treatment provided by section 529 of the federal internal revenue code of 1986, as amended, or any similar successor legislation;
(5) charge, impose and collect administrative fees and service charges in connection with any agreement, contract or transaction relating to the program;
(6) develop marketing plans and promotion material;
(7) establish the methods by which the funds held in accounts shall be dispersed;
(8) establish the method by which funds shall be allocated to pay for administrative costs;
(9) do all things necessary and proper to carry out the purposes of K.S.A. 2007 Supp. 75-640 to 75-648, and amendments thereto;
(10) adopt rules and regulations necessary to administer K.S.A. 2007 Supp. 75-640 to 75-648, and amendments thereto; and
(11) evaluate the Kansas postsecondary education savings program annually, and make a report thereon to the governor and legislature for the period.
History: L. 1999, ch. 154, § 15; May 27.
(b) The state treasurer may solicit proposals from financial organizations to act as depositories and managers of the program. Financial organizations submitting proposals shall describe the investment instrument which will be held in accounts. The state treasurer shall select as program depositories and managers the financial organization, from among the bidding financial organizations, that demonstrates the most advantageous combination, both to potential program participants and this state, of the following factors:
(1) Financial stability and integrity of the financial organization;
(2) the safety of the investment instrument being offered;
(3) the ability of the investment instrument to track increasing costs of postsecondary education;
(4) the ability of the financial organization to satisfy recordkeeping and reporting requirements;
(5) the financial organization's plan for promoting the program and the investment the organization is willing to make to promote the program;
(6) the fees, if any, proposed to be charged to persons for opening accounts;
(7) the minimum initial deposit and minimum contributions that the financial organization will require;
(8) the ability of the financial organization to accept electronic withdrawals, including payroll deduction plans; and
(9) other benefits to the state or its residents included in the proposal, including fees payable to the state to cover expenses of operation of the program.
(c) The state treasurer may enter into a contract with a financial organization. Such financial organization management shall provide only one type of investment instrument.
(d) The state treasurer may select more than one financial organization and investment instrument for the program when the federal internal revenue service has provided guidance that giving a contributor the choice of two or more investment instruments under a state program will not cause the program to fail to qualify for favorable tax treatment under section 529 of the federal internal revenue code of 1986, as amended.
(e) A management contract shall include, at a minimum, terms requiring the financial organization to:
(1) Take any action required to keep the program in compliance with requirements of K.S.A. 2007 Supp. 75-640 to 75-648, and amendments thereto, and any actions not contrary to its contract to manage the program to qualify as a "qualified state tuition plan" as defined in section 529 of the federal internal revenue code of 1986, as amended;
(2) keep adequate records of each account, keep each account segregated from each other account and provide the state treasurer with the information necessary to prepare the statements required by K.S.A. 2007 Supp. 75-646, and amendments thereto;
(3) compile and total information contained in statements required to be prepared under K.S.A. 2007 Supp. 75-646, and amendments thereto, and provide such compilations to the state treasurer;
(4) if there is more than one program manager, provide the state treasurer with such information as is necessary to determine compliance with K.S.A. 2007 Supp. 75-646, and amendments thereto;
(5) provide the state treasurer with access to the books and records of the program manager to the extent needed to determine compliance with the contract;
(6) hold all accounts for the benefit of the account owner or owners;
(7) be audited at least annually by a firm of certified public accountants selected by the program manager and provide the results of such audit to the state treasurer;
(8) provide the state treasurer with copies of all regulatory filings and reports made by the financial organization during the term of the management contract or while the financial organization is holding any accounts, other than confidential filings or reports that will not become part of the program. The program manager shall make available for review by the state treasurer the results of any periodic examination of such manager by any state or federal banking, insurance or securities commission, except to the extent that such report or reports may not be disclosed under law; and
(9) ensure that any description of the program, whether in writing or through the use of any media, is consistent with the marketing plan developed pursuant to the provisions of K.S.A. 2007 Supp. 75-640 to 75-648, and amendments thereto.
(f) The state treasurer may provide that an audit shall be conducted of the operations and financial position of the program depository and manager at any time if the state treasurer has any reason to be concerned about the financial position, the recordkeeping practices or the status of accounts of such program depository and manager.
(g) During the term of any contract with a program manager, the state treasurer shall conduct an examination of such manager and the manager's handling of accounts. Such examination shall be conducted at least biennially if such manager is not otherwise subject to periodic examination by the state bank commissioner, the federal deposit insurance corporation or other similar entity.
(h) (1) If selection of a financial organization as a program manager or depository is not renewed, after the end of the financial organization's term:
(A) Accounts previously established and held in investment instruments at such financial organization may be terminated;
(B) additional contributions may be made to such accounts;
(C) no new accounts may be placed with such financial organization; and
(D) existing accounts held by such depository shall remain subject to all oversight and reporting requirements established by the state treasurer.
(2) If the state treasurer terminates a financial organization as a program manager or depository, the state treasurer shall take custody of accounts held by such financial organization and shall seek to promptly transfer such accounts to another financial organization that is selected as a program manager or depository and into investment instruments as similar to the original instruments as possible.
(i) The state treasurer may enter into such contracts as it deems necessary and proper for the implementation of the program.
History: L. 1999, ch. 154, § 16; May 27.
(b) A family postsecondary education savings account may be opened by any person who desires to save money for the payment of the qualified higher education expenses of the designated beneficiary. Such person shall be considered the account owner.
(1) An application for such account shall be in the form prescribed by the state treasurer and contain the following:
(A) The name, address and social security number or employer identification number of the account owner;
(B) the designation of a designated beneficiary;
(C) the name, address and social security number of the designated beneficiary;
(D) the certification relating to no excess contributions; and
(E) such other information as the state treasurer may require.
(2) The state treasurer may establish a nominal nonrefundable application fee for such application.
(c) Any person may make contributions to the account after the account is opened.
(d) Contributions to accounts may be made only in cash.
(e) An account owner may withdraw all or part of the balance from an account on sixty-days' notice or such shorter period as may be authorized under rules and regulations governing the program.
(f) (1) An account owner may change the designated beneficiary of an account to an individual who is a member of the family of the prior designated beneficiary in accordance with procedures established pursuant to the provisions of K.S.A. 2007 Supp. 75-640 through 75-648, and amendments thereto.
(2) An account owner may transfer all or a portion of an account to another family postsecondary education savings account, the designated beneficiary of which is a member of the family as defined in section 529 of the federal internal revenue code of 1986, as amended.
(3) Changes in designated beneficiaries and transfers under this subsection shall not be permitted to the extent that they would constitute excess contributions or unauthorized investment choices.
(g) The program shall provide separate accounting for each designated beneficiary.
(h) Subject to the provisions of section 529 of the internal revenue code of 1986, in effect on January 1, 2002, or later versions as established in rules and regulations adopted by the treasurer, an account owner of any account shall be permitted to direct the investment of any contributions to an account or the earnings thereon.
(i) Neither an account owner nor a designated beneficiary may use an interest in an account as security for a loan. Any pledge of an interest in an account shall be of no force and effect.
(j) (1) The state treasurer shall adopt rules and regulations to prevent contributions on behalf of a designated beneficiary in excess of an amount equal to the average amount of the qualified higher education expenses that would be incurred for five years of study at institutions of postsecondary education located in the midwest states. Such amount shall be determined annually by the state treasurer.
(2) Such rules and regulations shall include requirements that any excess contributions with respect to a designated beneficiary be promptly withdrawn in a nonqualified withdrawal or transferred to another account.
(k) (1) If there is any distribution from an account to any individual or for the benefit of any individual during a calendar year, such distribution shall be reported to the federal internal revenue service and each account owner, the designated beneficiary, or the distributee to the extent required by federal law or regulation.
(2) Statements shall be provided to each account owner at least once each year within 60 days after the end of the twelve-month period to which they relate. The statement shall identify the contributions made during a preceding twelve-month period, the total contributions made to the account through the end of the period, the value of the account at the end of such period, distributions made during such period and any other information that the state treasurer shall require to be reported to the account owner.
(3) Statements and information relating to accounts shall be prepared and filed to the extent required by federal and state tax law.
(l) (1) A state or local government, or agency or instrumentality thereof, or organization described in section 501(c)(3) of the federal internal revenue code of 1986, as amended, may open and become the account owner of an account to fund scholarships for persons whose identity will be determined upon disbursement.
(2) In the case of any account opened pursuant to provision (1) of this subsection, the requirement set forth in subsection (b) that a designated beneficiary be designated when an account is opened shall not apply and each individual who receives an interest in such account as a scholarship shall be treated as a designated beneficiary with respect to such interest.
(m) An annual fee may be imposed upon the account owner or owners for the maintenance of the account.
(n) An account owner or designated beneficiary of a Kansas postsecondary education savings account must be a citizen or resident of the United States of America.
(o) The program shall disclose the following information in writing to each account owner and prospective account owner of a family postsecondary education savings account:
(1) The terms and conditions for purchasing a family postsecondary education savings account;
(2) any restrictions on the substitution of beneficiaries;
(3) the person or entity entitled to terminate the savings agreement;
(4) the period of time during which a beneficiary may receive benefits under the savings agreement;
(5) the terms and conditions under which money may be wholly or partially withdrawn from the program, including, but not limited to, any reasonable charges and fees that may be imposed for withdrawal;
(6) the probable tax consequences associated with contributions to and distributions from accounts; and
(7) all other rights and obligations pursuant to savings agreements, and any other terms, conditions and provisions deemed necessary and appropriate by the state treasurer.
(p) Nothing in K.S.A. 2007 Supp. 75-640 through 75-648, and amendments thereto, or in any savings agreement entered into pursuant to K.S.A. 2007 Supp. 75-640 through 75-648, and amendments thereto, shall be construed as a guarantee by the state of Kansas or any institution of postsecondary education that a beneficiary will be admitted to the institution of postsecondary education or, upon admission to any institution of postsecondary education, will be permitted to continue to attend or will receive a degree from such institution of postsecondary education.
(q) Moneys in a family postsecondary education savings account shall be exempt from attachment, execution or garnishment as provided by K.S.A. 60-2308, and amendments thereto.
(r) On or before the 10th day of the 2007, 2008 and 2009 legislative sessions, the state treasurer shall submit a report on the Kansas postsecondary education savings program to the senate committee on education and the house committee on higher education. Such report shall include the total number of contributions to and withdrawals from the program and the total amount of such contributions and withdrawals which were made during the preceding year.
History: L. 1999, ch. 154, § 17; L. 2000, ch. 23, § 2; L. 2002, ch. 104, § 2; Revived and Amend., L. 2004, ch. 185, § 26; L. 2006, ch. 58, § 1; July 1.
(1) Give any designated beneficiary any rights or legal interest with respect to an account unless the designated beneficiary is the account owner;
(2) guarantee that a designated beneficiary will be admitted to an institution of postsecondary education;
(3) create state residency for an individual merely because the individual is a designated beneficiary; or
(4) guarantee that amounts saved pursuant to the program will be sufficient to cover the qualified higher education expenses of a designated beneficiary.
(b) (1) Nothing in K.S.A. 2007 Supp. 75-640 to 75-648, and amendments thereto, shall create or be construed to create any obligation of the state treasurer, the state or any agency or instrumentality of the state to guarantee for the benefit of any account owner or designated beneficiary with respect to:
(A) The rate of interest or other return on any account; and
(B) the payment of interest or other return on any account.
(2) The state treasurer by rules and regulations shall provide that every contract, application, deposit slip or other similar document that may be used in connection with a contribution to an account clearly indicate that the account is not insured by the state and neither the principal deposited nor the investment return is guaranteed by the state.
History: L. 1999, ch. 154, § 18; May 27.
(2) Except as provided in subsection (b), the state treasurer shall credit all moneys received in connection with the Kansas postsecondary education savings program to the Kansas postsecondary education savings program trust fund.
(b) (1) The Kansas postsecondary education savings expense fund is hereby established in the state treasury. The fund shall consist of moneys received from the Kansas postsecondary education savings program manager.
(2) All expenses incurred by the treasurer in developing and administering the postsecondary education savings program shall be payable from the Kansas postsecondary education savings expense fund.
History: L. 1999, ch. 154, § 19; L. 2001, ch. 179, § 1; July 1.
History: L. 2000, ch. 23, § 4; Mar. 30.
(1) "Federal poverty level" means the most recent poverty income guidelines published in the calendar year by the United States department of health and human services.
(2) "Program" means the low-income family postsecondary savings accounts incentive program established by this section.
(3) "Qualified individual or family" means an individual or family who resides within the state of Kansas and whose household income is not more than 200% of the federal poverty level at the time of application.
(4) "Participant" means a qualified individual or family who has been approved for participation in the program.
(5) "District" means a congressional district of the state of Kansas.
(6) Words and phrases have the meanings provided by K.S.A. 75-643, and amendments thereto, unless otherwise provided by this section.
(b) There is hereby established the low-income family postsecondary savings accounts incentive program. The purpose of the program is to encourage the establishment of family postsecondary savings accounts pursuant to K.S.A. 75-640, and amendments thereto, by qualified individuals and families.
(c) The treasurer shall:
(1) Implement and administer the program;
(2) develop marketing plans and promotional material for the program;
(3) prescribe the procedure for, and requirements relating to, the submission and approval of applications;
(4) do all things necessary and proper to carry out the purposes of this act; and
(5) adopt any rules and regulations and policies deemed necessary for implementation and administration of the program.
(d) Applications for participation in the program shall be submitted to the treasurer in the manner and form required by the treasurer. Applications shall be accompanied by any information deemed necessary by the treasurer.
(e) During fiscal year 2007, the treasurer may approve no more than 400 applications. Each fiscal year thereafter, the treasurer may approve up to 400 applications in addition to those approved in the previous fiscal year. In each fiscal year, the treasurer shall approve no more than 100 applications from residents of a single district. If 100 applications from residents of a district are not approved in any fiscal year, the treasurer may approve additional applications submitted by residents of the remaining districts. The treasurer shall provide written notice, to an applicant, of the approval or nonapproval of such person's application. No application shall be approved after June 30, 2009.
(f) The provisions of this subsection shall be subject to the limitations of appropriations. The amount of contributions made to an account by a participant who establishes a family postsecondary savings account pursuant to K.S.A. 75-640 et seq., and amendments thereto, shall be matched by the state on a dollar-for-dollar basis if the participant contributes at least $100 in each calendar year in which the account is open. The aggregate of all matching amounts for any participant shall not exceed $600 in any calendar year. No moneys shall be appropriated for the purpose of marketing or administering this program in an amount which exceeds $50,000. No moneys shall be appropriated for the purpose of matching contributions after June 30, 2009.
(g) Between January 1 and January 31 of each year, the director of accounts and reports shall transfer from the state general fund to the Kansas postsecondary education savings program trust fund the amount, as certified by the treasurer, necessary to meet the matching obligations under subsection (f) for the preceding calendar year. On or before January 31 of each year, the treasurer shall transfer from the Kansas postsecondary education savings program trust fund to the account of each participant the amount determined by the treasurer to meet the matching obligation due to such participant under subsection (f) for the preceding calendar year.
(h) The treasurer shall ensure that all withdrawals of matching funds are used for qualified withdrawals under K.S.A. 75-640 et seq., and amendments thereto.
(i) On or before January 15, 2009, the treasurer shall prepare and submit to the governor and legislature a report on the program. Such report shall include the number of accounts opened under the program, the amount of moneys contributed to such accounts by participants, the amount of matching moneys transferred by the treasurer pursuant to subsection (g), the average income of the participants, an analysis of the success of the program in meeting the purpose of the program and any other information deemed appropriate by the treasurer.
(j) The provisions of this section shall be part of and supplemental to the Kansas postsecondary education savings program.
History: L. 2006, ch. 189, § 3; May 25.