September 12, 2017, Introduced by Senators EMMONS, COLBECK, PAVLOV and GREEN and referred to the Committee on Education.



     A bill to amend 2000 PA 161, entitled


"Michigan education savings program act,"


(MCL 390.1471 to 390.1486) by adding sections 23, 24, and 25.




     Sec. 23. (1) Beginning with the school year that starts 1 year


after the effective date of this part, parents may open an account


for each dependent who is a student to allow for the enrollment in


and payment for eligible services offered by a public school for


that student and to pay for postsecondary education expenses. A


parent shall open only 1 account for each dependent.


     (2) To open an account, the parent shall enter into a program


agreement with the program. The program agreement shall be in the


form prescribed by a program manager and approved by the treasurer


and contain all of the following:


     (a) The name, address, and social security number of the



     (b) The name, address, and social security number of the




     (c) Any other information that the treasurer or program


manager considers necessary for the enrollment of the student and


related to the eligible services.


     (3) Any individual or entity may make contributions to an


account. Any contributions to an account must be made in cash, by


check, by credit card, or by any similar method as approved by the


state treasurer but shall not be property.


     (4) An account owner is responsible for the payment of


eligible services and any postsecondary education expenses.


Distributions from an account to pay for eligible services shall be


paid directly to the public school in which the eligible services


are to be provided distributions from an account to pay for


education postsecondary education expenses may be paid to the


account owner or to the institution providing the postsecondary


education. Payments may be made electronically.


     (5) Each savings plan under the program shall provide separate


accounting for each student.


     Sec. 24. (1) Upon graduation from a public school, an account


owner may transfer funds back to the enhanced Michigan education


savings program fund or utilize the remaining funds to pay for


postsecondary education expenses.


     (2) Upon the death of the student, the account shall be closed


and that portion of the money in the account that was deposited


pursuant to section 23 shall be transferred back into the enhanced

Michigan education savings program fund.


     Sec. 25. (1) Except as otherwise provided in this section, an


account owner shall not direct the investment of any contributions


to an account or the earnings on an account.


     (2) An account owner may select among different investment


strategies designed by a program manager to the extent allowed


under this part.


     (3) The program may allow board members or employees of the


program, or the board members or employees of a contractor hired by


the program to perform administrative services, to make


contributions to an account.


     (4) An interest in an account shall not be used by an account


owner as security for a loan. Any pledge of an interest in an


account has no force or effect.


     Enacting section 1. This amendatory act does not take effect


unless Senate Bill No. 544                                    


            of the 99th Legislature is enacted into law.