0001| HOUSE BILL 563 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| RAYMOND G. SANCHEZ | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO EDUCATION; ENACTING THE EDUCATION TRUST ACT; | 0012| CREATING A FUND; ENACTING SECTIONS OF THE NMSA 1978; MAKING | 0013| APPROPRIATIONS. | 0014| | 0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0016| Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 | 0017| through 7 of this act may be cited as the "Education Trust | 0018| Act". Section 2. [NEW MATERIAL] DEFINITIONS.--As used | 0019| in the Education Trust Act: | 0020| A. "beneficiary" means a person who is entitled to | 0021| receive benefits under a college investment agreement or a | 0022| prepaid tuition contract; | 0023| B. "board" means the education trust board; | 0024| C. "commission" means the commission on higher | 0025| education; | 0001| D. "college investment agreement" means an | 0002| agreement entered into by the board and an investor, pursuant | 0003| to the provisions of the Education Trust Act, to defray the | 0004| costs of attendance of a beneficiary at an institution of | 0005| higher education; | 0006| E. "council" means the state investment council; | 0007| | 0008| F. "fund" means the education trust fund; | 0009| G. "institution of higher education" means a state | 0010| educational institution as defined in Section 6-17-1.1 NMSA | 0011| 1978, a branch college, an independent community college, a | 0012| technical and vocational institute, an institution licensed by | 0013| the commission or a regionally accredited independent post- | 0014| secondary institution operated in New Mexico; | 0015| H. "investor" means a person who has entered into a | 0016| college investment agreement with the board; | 0017| I. "prepaid tuition contract" means a contract | 0018| entered into by the board and a purchaser, pursuant to the | 0019| provisions of the Education Trust Act, to provide for the | 0020| payment of higher education tuition and required fees of a | 0021| beneficiary; and | 0022| J. "purchaser" means a person who is obligated to | 0023| make payments under a prepaid tuition contract. | 0024| Section 3. [NEW MATERIAL] EDUCATION TRUST FUND-- | 0025| CREATION.-- | 0001| A. The "education trust fund" is created in the | 0002| state treasury. The board shall deposit all money received | 0003| pursuant to college investment agreements and prepaid tuition | 0004| contracts into the fund. Money in the fund shall consist of | 0005| appropriations, investments, payments, gifts, bequests or | 0006| donations. All money invested in the fund is appropriated to | 0007| the board. Money in the fund shall not revert to the general | 0008| fund at the end of the fiscal year. The board shall account | 0009| for each payment from an investor or purchaser on behalf of a | 0010| beneficiary pursuant to a college investment agreement or | 0011| prepaid tuition contract. All money in the fund shall be | 0012| invested by the state investment officer according to rules and | 0013| regulations promulgated by the council, subject to the approval | 0014| of the board, for the investment of funds pursuant to the | 0015| Education Trust Act. The board shall review investments made | 0016| pursuant to this subsection at least quarterly. | 0017| B. Expenditures from the fund shall be for payments | 0018| to institutions of higher education on behalf of beneficiaries | 0019| or for refunds, in accordance with the provisions of the | 0020| Education Trust Act, and for costs of administering that act. | 0021| C. If, prior to the end of fiscal year 2003, the | 0022| assets of the fund are sufficiently in excess of those required | 0023| to meet the obligations of the fund, the fund shall refund to | 0024| the general fund the non-reverted portion of the appropriation | 0025| provided for in Section 10 of the Education Trust Act. | 0001| Section 4. [NEW MATERIAL] BOARD CREATED--MEMBERS-- | 0002| APPOINTMENT--TERMS OF OFFICE.-- | 0003| A. There is created the "education trust board". | 0004| The board is administratively attached to the commission, and | 0005| the commission shall provide administrative support for the | 0006| board in carrying out its duties pursuant to the Education | 0007| Trust Act. The board shall consist of the following voting | 0008| members: | 0009| (1) the executive director of the commission, | 0010| or his designee, who shall be the ex-officio chair of the | 0011| board; | 0012| (2) the state investment officer, or his | 0013| designee; | 0014| (3) one member appointed by the governor; | 0015| (4) one member representing institutions of | 0016| higher education appointed by the speaker of the house of | 0017| representatives; and | 0018| (5) one member representing students at | 0019| institutions of higher education appointed by the president pro | 0020| tempore of the senate. | 0021| B. The appointed members must possess knowledge, | 0022| skill and experience in higher education, business or finance. | 0023| C. The appointed members shall serve six-year | 0024| terms, with the exception of the member representing students, | 0025| who shall be appointed for a two-year term. Vacancies on the | 0001| board shall be filled by the respective appointing authority | 0002| for the remainder of the vacating member's term. | 0003| D. Members of the board shall be subject to the | 0004| provisions of the Per Diem and Mileage Act and shall receive no | 0005| other compensation, perquisite or allowance for their service | 0006| on the board. | 0007| Section 5. [NEW MATERIAL] COLLEGE INVESTMENT | 0008| AGREEMENT.-- | 0009| A. An investor may enter into a college investment | 0010| agreement with the board under which the investor agrees to | 0011| make investments into the fund from time to time for the | 0012| purpose of defraying the costs of attendance billed by | 0013| institutions of higher education. An investor may enter into a | 0014| college investment agreement on behalf of any beneficiary under | 0015| the age of eighteen. The board shall adopt a form of the | 0016| college investment agreement to be used by the board and | 0017| investors. | 0018| B. The beneficiary under a college investment | 0019| agreement must be younger than eighteen years of age at the | 0020| time the investor enters into the agreement and must be: | 0021| (1) a resident of this state at the time the | 0022| investor enters into the agreement; or | 0023| (2) a nonresident who is the child of a parent | 0024| who is a resident of this state at the time that parent enters | 0025| into the agreement. | 0001| C. The board shall provide for the direct payment | 0002| of principal, investment earnings and capital appreciation | 0003| accrued pursuant to a college investment agreement to the | 0004| institution of higher education that the beneficiary actually | 0005| attends. | 0006| D. The board may require a reasonable period of | 0007| residence in this state, together with other related criteria, | 0008| for a beneficiary or an investor. A beneficiary is considered | 0009| a resident for purposes of tuition regardless of the | 0010| beneficiary's residence on the date of enrollment. | 0011| E. The college investment agreement may be | 0012| terminated by the investor at any time. The investor may | 0013| modify the college investment agreement to designate a new | 0014| beneficiary or beneficiaries instead of the original | 0015| beneficiary if the new beneficiary or beneficiaries meet the | 0016| requirements of the original beneficiary on the date the | 0017| designation is changed and if the original beneficiary: | 0018| (1) dies; | 0019| (2) is not admitted to the institution of | 0020| higher education following proper application; | 0021| (3) elects not to attend the institution of | 0022| higher education or, if attending, elects to discontinue higher | 0023| education; or | 0024| (4) for any other circumstance approved by the | 0025| board, does not exercise his rights under the college | 0001| investment agreement. | 0002| F. If the college investment agreement is | 0003| terminated pursuant to the provisions of this section, the | 0004| board shall refund to the investor, to any person designated by | 0005| the investor pursuant to the agreement or to the legal | 0006| representative of the investor, an amount equal to all the | 0007| principal contributed or paid in by the investor plus interest | 0008| not to exceed four percent annually. The balance of the | 0009| accrued investment earnings and capital appreciation less | 0010| administrative costs shall be credited to the fund. | 0011| G. The board shall establish a refund policy if a | 0012| beneficiary receives additional student financial aid. | 0013| H. A college investment agreement terminates on the | 0014| tenth anniversary of the date the beneficiary is projected to | 0015| graduate from high school, not counting time spent by the | 0016| beneficiary as an active-duty member of the United States armed | 0017| services. | 0018| I. Gifts and bequests to the fund may be made in | 0019| the name of a specific beneficiary or in the name of the fund | 0020| in general. Gifts and bequests given for the benefit of a | 0021| specific beneficiary shall be credited to that beneficiary, and | 0022| gifts and bequests given to the fund in general shall be | 0023| credited equally to each beneficiary of a college investment | 0024| agreement. | 0025| J. Principal paid into the fund, together with | 0001| accrued investment earnings and capital appreciation, shall be | 0002| excluded from any calculation of a beneficiary's state student | 0003| financial aid eligibility. | 0004| K. The board shall annually notify each investor of | 0005| the balance of his college savings agreement principal, accrued | 0006| investment earnings and capital appreciation. | 0007| Section 6. [NEW MATERIAL] PREPAID HIGHER EDUCATION | 0008| TUITION PROGRAM--RULES AND REGULATIONS.-- | 0009| A. The board is authorized to adopt and promulgate | 0010| rules and regulations in order to establish a prepaid higher | 0011| education tuition program. Prior to the establishment of the | 0012| program, the board will contract for a thorough feasibility | 0013| study of the proposed prepaid higher education tuition program, | 0014| including an actuarial analysis of the assumptions underlying | 0015| the proposed program, and report to the appropriate interim | 0016| committee of the legislature prior to November 1, 1997. The | 0017| report shall include a recommendation from the board regarding | 0018| whether it is feasible to proceed with the adoption of the | 0019| proposed program based on the findings of the feasibility | 0020| study. | 0021| B. The rules and regulations regarding the prepaid | 0022| higher education tuition program shall specify at least the | 0023| following: | 0024| (1) that prepaid tuition contracts, once paid, | 0025| will cover all tuition and required fees of public institutions | 0001| of higher education; | 0002| (2) that payments for prepaid tuition | 0003| contracts may be made either in a lump sum or in installments; | 0004| (3) that the prepaid tuition contracts shall | 0005| include at least the following: | 0006| (a) provisions that allow purchasers to | 0007| choose from payment plans that pay the tuition and required | 0008| fees for public institutions of higher education; | 0009| (b) provisions that allow for rollover | 0010| of prepaid higher education tuition benefits from one plan to | 0011| another, and that provide that benefits may be used at any | 0012| public institution of higher education; | 0013| (c) penalties for termination of the | 0014| contract or default on any of the contract's terms or | 0015| conditions; and | 0016| (d) provisions that allow purchasers to | 0017| change or switch beneficiaries; | 0018| (4) that beneficiaries must meet certain | 0019| minimum eligibility requirements as determined by the board; | 0020| (5) that the board shall consider at least the | 0021| following variables when setting contract prices: | 0022| (a) the amount and estimated rate of | 0023| increase of tuition and fees at public institutions of higher | 0024| education; | 0025| (b) estimated investment returns; | 0001| (c) estimated administrative costs; and | 0002| (d) the period between the date the | 0003| contract is entered into and the date the beneficiary is | 0004| projected to graduate from high school; | 0005| (6) that gifts or bequests may be made to the | 0006| fund, either on behalf of a beneficiary or to the fund | 0007| generally; | 0008| (7) that public institutions of higher | 0009| education are either required to participate or that the board | 0010| may specify how and when public institutions of higher | 0011| education become eligible to participate in the program; | 0012| (8) that benefits under a prepaid tuition | 0013| contract are excluded from any calculation of a beneficiary's | 0014| state student financial aid eligibility; and | 0015| (9) that the board shall annually provide for | 0016| audited statements and actuarial studies on the condition of | 0017| the fund. | 0018| C. In no event shall any liability of, or | 0019| contractual obligation incurred by, the program established | 0020| pursuant to the provisions of this section obligate or encumber | 0021| any of the state's permanent funds, the severance tax permanent | 0022| fund or any money that is a part of a state-funded financial | 0023| aid program. | 0024| Section 7. [NEW MATERIAL] REPORTS.-- | 0025| A. Not later than November 1 of each year, the | 0001| board shall submit to the governor and to the appropriate | 0002| interim legislative committee a report including: | 0003| (1) the board's fiscal transactions during the | 0004| preceding fiscal year; | 0005| (2) the market and book value of the fund as | 0006| of the end of the preceding fiscal year; | 0007| (3) the asset allocations of the fund | 0008| expressed in percentages of stocks, fixed income, securities, | 0009| cash or other financial assets; | 0010| (4) the rate of return on the investment of | 0011| the fund's assets during the preceding fiscal year; | 0012| (5) an actuarial valuation of the assets and | 0013| liabilities of the program, including the extent to which the | 0014| program's liabilities are unfunded; and | 0015| (6) complete prepaid tuition contract sales | 0016| information, including projected enrollments of beneficiaries | 0017| at institutions of higher education. | 0018| B. The board shall make the report described by | 0019| Subsection A available to purchasers of prepaid tuition | 0020| contracts and investments under college investment agreements. | 0021| Section 8. A new section of the Income Tax Act is enacted | 0022| to read: | 0023| "[NEW MATERIAL] DEDUCTION-PAYMENTS INTO EDUCATION TRUST | 0024| FUND.--A taxpayer may claim a deduction from net income in an | 0025| amount equal to the payments made by the taxpayer into the | 0001| education trust fund pursuant to a college investment agreement | 0002| or prepaid tuition contract under the Education Trust Act in | 0003| the taxable year for which the deduction is being claimed. A | 0004| husband and wife who file separate returns for the taxable year | 0005| in which they could have filed a joint return may each claim | 0006| only one-half of the deduction that would have been allowed on | 0007| the joint return. Individuals having income both within and | 0008| without this state shall apportion this exemption in accordance | 0009| with regulations of the secretary." | 0010| Section 9. A new section of the Income Tax Act is enacted | 0011| to read: | 0012| "[NEW MATERIAL] EXEMPTION--EARNINGS FROM EDUCATION | 0013| TRUST FUND.--All earnings of an investor, purchaser or | 0014| beneficiary from investment of money paid by the investor or | 0015| purchaser or on behalf of the beneficiary into the education | 0016| trust fund pursuant to a college investment agreement or | 0017| prepaid tuition contract authorized in the Education Trust Act | 0018| are exempt from the income tax pursuant to the Income Tax Act." | 0019| Section 10. APPROPRIATION.--One hundred seventy-five | 0020| thousand dollars ($175,000) is appropriated from the general | 0021| fund to the commission on higher education for expenditure in | 0022| fiscal year 1998 for the purpose of advertising, conducting | 0023| feasibility studies and other costs associated with | 0024| implementing the provisions of the Education Trust Act. Any | 0025| unexpended or unencumbered funds remaining at the end of the | 0001| fiscal year shall revert to the general fund. | 0002| - 12 - State of New Mexico | 0003| House of Representatives | 0004| | 0005| FORTY-THIRD LEGISLATURE | 0006| FIRST SESSION, 1997 | 0007| | 0008| | 0009| February 19, 1997 | 0010| | 0011| | 0012| Mr. Speaker: | 0013| | 0014| Your EDUCATION COMMITTEE, to whom has been referred | 0015| | 0016| HOUSE BILL 563 | 0017| | 0018| has had it under consideration and reports same with | 0019| recommendation that it DO PASS, amended as follows: | 0020| | 0021| 1. On page 2, line 9, before "educational" insert "public | 0022| post-secondary". | 0023| | 0024| 2. On page 8, line 17, after "of" insert "state". | 0025| | 0001| 3. On page 8, line 25, after "for" insert "state". | 0002| | 0003| 4. On page 9, line 3, after "any" insert "state". | 0004| | 0005| 5. On page 9, line 15, after "at" insert "state". | 0006| | 0007| 6. On page 9, line 25, after "that" insert "state". | 0008| | 0009| 7. On page 10, line 2, after "when" insert "state"., | 0010| | 0011| | 0012| and thence referred to the APPROPRIATIONS AND FINANCE | 0013| COMMITTEE. | 0014| | 0015| Respectfully submitted, | 0016| | 0017| | 0018| | 0019| | 0020| | 0021| Samuel F. Vigil, Chairman | 0022| | 0023| | 0024| Adopted Not Adopted | 0025| | 0001| (Chief Clerk) (Chief Clerk) | 0002| | 0003| Date | 0004| | 0005| The roll call vote was 10 For 0 Against | 0006| Yes: 10 | 0007| Excused: Mallory, Nicely, S.M. Williams | 0008| Absent: None | 0009| | 0010| | 0011| | 0012| G:\BILLTEXT\BILLW_97\H0563 State of New Mexico | 0013| House of Representatives | 0014| | 0015| FORTY-THIRD LEGISLATURE | 0016| FIRST SESSION, 1997 | 0017| | 0018| | 0019| March 5, 1997 | 0020| | 0021| | 0022| Mr. Speaker: | 0023| | 0024| Your TAXATION AND REVENUE COMMITTEE, to whom has | 0025| been referred | 0001| | 0002| HOUSE BILL 563, as amended | 0003| | 0004| has had it under consideration and reports same with | 0005| recommendation that it DO PASS, amended as follows: | 0006| | 0007| 1. Strike House Appropriations and Finance Committee | 0008| Amendments 6 and 7. | 0009| | 0010| 2. On page 1, line 12, strike "NMSA 1978" and insert in | 0011| lieu thereof "INCOME TAX ACT". | 0012| | 0013| 3. On page 2, line 11, strike the comma and insert in lieu | 0014| thereof "or". | 0015| | 0016| 4. On page 2, line 12, after "commission", strike the | 0017| remainder of the line and strike all of line 13 up to the | 0018| semicolon. | 0019| | 0020| 5. On page 11, line 25, strike "exemption" and insert in | 0021| lieu thereof "deduction". | 0022| | 0023| 6. On page 12, strike lines 4 through 10 and insert in lieu | 0024| thereof: | 0025| | 0001| ""[NEW MATERIAL] EDUCATION TRUST FUND--EARNINGS TAX | 0002| EXEMPT--WITHDRAWALS ARE TAXABLE INCOME--AUTHORITY TO WITHHOLD | 0003| TAX.-- | 0004| A. All earnings of an investor, purchaser or | 0005| beneficiary from investment of money paid by the investor or | 0006| purchaser or on behalf of the beneficiary into the education | 0007| trust fund pursuant to a college investment agreement or prepaid | 0008| tuition contract authorized in the Education Trust Act are exempt | 0009| from the income tax pursuant to the Income Tax Act. | 0010| | 0011| B. All amounts refunded to an investor upon | 0012| termination of a college investment agreement or to a purchaser | 0013| upon termination of a prepaid tuition contract pursuant to the | 0014| Education Trust Act are taxable in the year in which they are | 0015| received. | 0016| | 0017| | 0018| C. Upon payment of a refund to an investor or | 0019| purchaser pursuant to the provisions of the Education Trust Act, | 0020| the education trust board shall deduct and withhold from that | 0021| refund a tax in an amount equal to six percent of the refund. | 0022| The amount withheld shall be transmitted to the taxation and | 0023| revenue department for disposition pursuant to regulations of the | 0024| secretary."". | 0025| | 0001| Respectfully submitted, | 0002| | 0003| | 0004| | 0005| | 0006| | 0007| Jerry W. Sandel, Chairman | 0008| | 0009| | 0010| Adopted Not Adopted | 0011| | 0012| (Chief Clerk) (Chief Clerk) | 0013| | 0014| Date | 0015| | 0016| The roll call vote was 13 For 0 Against | 0017| Yes: 13 | 0018| Excused: None | 0019| Absent: None | 0020| | 0021| | 0022| .117987.1 | 0023| G:\BILLTEXT\BILLW_97\H0563 FORTY-THIRD LEGISLATURE | 0024| FIRST SESSION | 0025| | 0001| | 0002| March 8, 1997 | 0003| | 0004| | 0005| HOUSE FLOOR AMENDMENT number ___1___ to HOUSE BILL 563, as amended | 0006| | 0007| Amendment sponsored by Representative Danice Picraux | 0008| | 0009| | 0010| 1. On page 2, line 10, strike the third comma and insert in lieu | 0011| thereof "or". | 0012| | 0013| 2. On page 2, lines 11 and 12, strike ", an institution licensed | 0014| by the commission". | 0015| | 0016| 3. On page 4, line 1, after "OFFICE" insert "--POWERS AND | 0017| DUTIES". | 0018| | 0019| 4. On page 5, between lines 3 and 4, insert the following new | 0020| subsection: | 0021| | 0022| "E. The board is authorized to adopt and promulgate rules and | 0023| regulations as necessary to carry out the provisions of the Education | 0024| Trust Act, protect the financial integrity of the fund, preserve the | 0025| program's benefits and assure the appropriate use of the tax benefits. | 0001| The board shall also determine and adopt by regulation the cost of | 0002| attendance at institutions of higher education, provided that the cost | 0003| of attendance shall include the same components and allowances as are | 0004| used to determine cost of attendance for the federal student financial | 0005| assistance programs.". | 0006| | 0007| 5. On page 6, line 23, after "investor" strike the remainder of | 0008| the line, strike all of line 24 and on line 25, strike "investor, ". | 0009| | 0010| 6. On page 10, line 25, after "income" strike the comma. | 0011| | 0012| 7. On page 11, line 20, after the period insert: | 0013| | 0014| | 0015| | 0016| "The amount of payments made on behalf of any one beneficiary that may | 0017| be deducted shall not exceed in the aggregate the cost of attendance at | 0018| the applicable institution of higher education, as determined by the | 0019| education trust board.". | 0020| | 0021| | 0022| | 0023| | 0024| | 0025| | 0001| | 0002| | 0003| | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| ___________________________ | 0011| Danice Picraux | 0012| | 0013| | 0014| | 0015| Adopted ___________________ Not Adopted ___________________________ | 0016| (Chief Clerk) (Chief Clerk) | 0017| | 0018| | 0019| Date ________________ | 0020| | 0021| FORTY-THIRD LEGISLATURE | 0022| FIRST SESSION, 1997 | 0023| | 0024| | 0025| March 15, 1997 | 0001| | 0002| Mr. President: | 0003| | 0004| Your EDUCATION COMMITTEE, to whom has been referred | 0005| | 0006| HOUSE BILL 563, as amended | 0007| | 0008| has had it under consideration and reports same with recommendation | 0009| that it DO PASS, and thence referred to the FINANCE COMMITTEE. | 0010| | 0011| Respectfully submitted, | 0012| | 0013| | 0014| | 0015| __________________________________ | 0016| Cynthia Nava, Chairman | 0017| | 0018| | 0019| | 0020| Adopted_______________________ Not Adopted_______________________ | 0021| (Chief Clerk) (Chief Clerk) | 0022| | 0023| | 0024| Date ________________________ | 0025| | 0001| | 0002| The roll call vote was 6 For 0 Against | 0003| Yes: 6 | 0004| No: 0 | 0005| Excused: Boitano, Duran, Gorham, Rawson | 0006| Absent: None | 0007| | 0008| | 0009| H0563ED1 | 0010| | 0011| | 0012| | 0013| FORTY-THIRD LEGISLATURE | 0014| FIRST SESSION, 1997 | 0015| | 0016| | 0017| March 18, 1997 | 0018| | 0019| Mr. President: | 0020| | 0021| Your FINANCE COMMITTEE, to whom has been referred | 0022| | 0023| HOUSE BILL 563, as amended | 0024| | 0025| has had it under consideration and reports same with recommendation | 0001| that it DO PASS. | 0002| | 0003| Respectfully submitted, | 0004| | 0005| | 0006| | 0007| __________________________________ | 0008| Ben D. Altamirano, Chairman | 0009| | 0010| | 0011| | 0012| Adopted_______________________ Not Adopted_______________________ | 0013| (Chief Clerk) (Chief Clerk) | 0014| | 0015| | 0016| | 0017| Date ________________________ | 0018| | 0019| | 0020| The roll call vote was 6 For 0 Against | 0021| Yes: 6 | 0022| No: None | 0023| Excused: Carraro, Eisenstadt, Ingle, Lyons, McKibben | 0024| Absent: None | 0025| | 0001| | 0002| H0563FC1 | 0003| State of New Mexico | 0004| House of Representatives | 0005| | 0006| FORTY-THIRD LEGISLATURE | 0007| FIRST SESSION, 1997 | 0008| | 0009| | 0010| March 1, 1997 | 0011| | 0012| | 0013| Mr. Speaker: | 0014| | 0015| Your APPROPRIATIONS AND FINANCE COMMITTEE, to whom | 0016| has been referred | 0017| | 0018| HOUSE BILL 563, as amended | 0019| | 0020| has had it under consideration and reports same with | 0021| recommendation that it DO PASS, amended as follows: | 0022| | 0023| 1. On page 1, lines 12 and 13, strike "; MAKING APPROPRIATIONS". | 0024| | 0025| 2. On page 3, between lines 24 and 25, insert the following new | 0001| subsection: | 0002| | 0003| "D. In no event shall any liability of, or contractual | 0004| obligation incurred by, the program established pursuant to the | 0005| provisions of the Education Trust Act obligate or encumber any of the | 0006| state's land grant permanent funds, the severance tax permanent fund | 0007| or any money that is a part of a state-funded financial aid program.". | 0008| | 0009| 3. On page 5, line 11, strike "eighteen" and insert in lieu | 0010| thereof "nineteen". | 0011| | 0012| 4. On page 5, line 14, strike "eighteen" and insert in lieu | 0013| thereof "nineteen". | 0014| | 0015| 5. On page 10, strike lines 10 through 15. | 0016| | 0017| 6. On page 11, line 20, after the period insert "If payments made | 0018| by the taxpayer to the education trust fund are not expended for the | 0019| purposes authorized by the Education Trust Act, the payments shall be | 0020| taxable in the year the withdrawal is made.". | 0021| | 0022| 7. On page 12, line 10, after the period insert "All earnings of | 0023| an investor, purchaser or beneficiary from investment of money paid by | 0024| the investor or purchaser or on behalf of the beneficiary into the | 0025| education trust fund shall be taxable in the year they are withdrawn | 0001| if the earnings are not expended for the purposes authorized by the | 0002| Education Trust Act.". | 0003| | 0004| 8. On page 12, lines 11 through 18, strike Section 10 in its | 0005| entirety. | 0006| | 0007| | 0008| Respectfully submitted, | 0009| | 0010| | 0011| | 0012| | 0013| Max Coll, Chairman | 0014| | 0015| | 0016| Adopted Not Adopted | 0017| (Chief Clerk) (Chief Clerk) | 0018| | 0019| Date | 0020| | 0021| The roll call vote was 12 For 0 Against | 0022| Yes: 12 | 0023| Excused: Abeyta, Knowles, Marquardt, Pearce, Taylor, JP | 0024| Absent: None | 0025| | 0001| | 0002| .117809.1 | 0003| G:\BILLTEXT\BILLW_97\H0563 |