MISSISSIPPI LEGISLATURE
2007 Regular Session
To: Universities and Colleges; Appropriations
By: Representative Guice
AN ACT TO AMEND SECTIONS 37-155-5 AND 37-155-107, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF THE TERM "TUITION" AS USED IN RELATION TO THE MISSISSIPPI PREPAID AFFORDABLE COLLEGE TUITION (MPACT) PROGRAM AND THE MISSISSIPPI AFFORDABLE COLLEGE SAVINGS (MACS) PROGRAM; TO AMEND SECTION 37-155-11, MISSISSIPPI CODE OF 1972, TO CLARIFY THAT PLANS FOR WHICH PREPAID TUITION CONTRACTS ARE AVAILABLE UNDER THE MPACT PROGRAM ARE BASED ON THE NUMBER OF CREDIT HOURS REQUIRED FOR A CERTIFICATE OR DEGREE RATHER THAN THE TYPICAL FULL-TIME HOURLY COURSE LOAD RECOGNIZED BY THE INSTITUTION FOR TUITION PAYMENT PURPOSES, AND TO CLARIFY THAT A BENEFICIARY'S ENTIRE TUITION FOR A QUARTER, SEMESTER OR TERM WILL BE PAID UNDER THE PLAN REGARDLESS OF THE NUMBER OF CREDIT HOURS TAKEN BY THE BENEFICIARY; TO AMEND SECTION 37-155-21, MISSISSIPPI CODE OF 1972, TO REQUIRE THE BOARD OF DIRECTORS OF THE COLLEGE SAVINGS PLANS OF MISSISSIPPI TRUST FUNDS TO INCLUDE THE NUMBER OF CREDIT HOURS ORIGINALLY COVERED AND THE NUMBER REMAINING IN ITS ANNUAL STATEMENT TO SAVINGS PLAN PURCHASERS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 37-155-5, Mississippi Code of 1972, is amended as follows:
37-155-5. As used in this article, the following terms have the meanings ascribed to them in this section, unless the context clearly indicates otherwise:
(a) Prepaid Tuition Contract. A contract entered into between the Board of Directors of the College Savings Plans of Mississippi Trust Funds and a purchaser pursuant to this article.
(b) Trust fund. There is created a special fund in the State of Mississippi Treasury Department to be designated as the "Mississippi Prepaid Affordable College Tuition Trust Fund" (hereinafter referred to as the trust fund or fund) and to be administered by the State of Mississippi Treasury Department. The fund shall consist of state appropriations, monies acquired from other governmental or private sources, and money remitted in accordance with prepaid tuition contracts. In the event that dividends, interest and gains exceed the amount necessary for program administration and disbursements, the board may designate a percentage of the fund to serve as a contingency fund.
(c) Purchaser. A person, corporation, trust, charitable organization or other such entity that makes or is obligated to make advance payments in accordance with a prepaid tuition contract entered into pursuant to this article. However, no purchaser may request or accept any form of compensation, fee, commission, service charge or any other form of payment or remuneration for entering into a contract for the benefit of a nonresident beneficiary.
(d) Beneficiary. (i) The beneficiary of a prepaid tuition contract must be eighteen (18) years of age or younger at the time the purchaser enters into the contract and must be: (A) a resident of this state at the time the purchaser enters into the contract; or (B) a nonresident if the purchaser is a resident of this state at the time that the contract is entered into.
(ii) The board may require a reasonable period of residence in this state for a beneficiary or the purchaser.
(iii) A beneficiary is considered a resident for purposes of tuition regardless of the beneficiary’s residence on the date of enrollment. However, for contracts entered into after July 1, 2003, this provision only applies to nonresident beneficiaries if (A) the original purchaser was the parent, grandparent or legal guardian of the beneficiary; or (B) the beneficiary was a resident of Mississippi at the time the contract was purchased.
(e) Institution of higher education. Any public institution of higher learning or public community or junior college located in Mississippi.
(f) Tuition. The quarter, semester or term charges for the number of credit hours taken by a beneficiary in each quarter, semester or term, as the case may be, and all required fees imposed by an institution of higher education as a condition of enrollment by all students.
(g) Board or board of directors. The Board of Directors of the College Savings Plans of Mississippi Trust Funds as provided in Section 37-155-7.
(h) Legislature. The Legislature of Mississippi.
SECTION 2. Section 37-155-105, Mississippi Code of 1972, is amended as follows:
37-155-105. As used in this article, the following words and phrases have the meanings ascribed in this section unless the context clearly indicates otherwise:
(a) "MACS Program" means the Mississippi Affordable College Savings Program established under this article.
(b) "MACS Trust Fund" means a special fund in the State Treasury established under Section 37-155-111, and administered by the Treasury Department.
(c) "Account owner" means a resident or nonresident person, corporation, trust, charitable organization or other entity which contributes to or invests money in a savings trust account under the MACS Program on behalf of a beneficiary and which is listed as the owner of the savings trust account.
(d) "Beneficiary" means a resident or nonresident beneficiary of a savings trust agreement who meets the requirements of Section 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law, and any regulations established by the board.
(e) "Institution of higher education" means an eligible educational institution as defined in Section 529 of the Internal Revenue Code of 1986, as amended, or any other applicable federal law.
(f) "Tuition" means the quarter, semester or term charges for the number of credit hours taken by a beneficiary in each quarter, semester or term, as the case may be, and all required fees imposed by an institution of higher education as a condition of enrollment by all students.
(g) "Board" means the Board of Directors of the College Savings Plans of Mississippi Trust Funds established under Section 37-155-7.
(h) "Payor" means a person, corporation, trust, charitable organization or other such entity which contributes money or makes a payment to either a savings trust account established pursuant to this article or a prepaid tuition account established under Sections 37-155-1 through 37-155-27 on behalf of a beneficiary.
(i) "Savings trust account" means an account established by an account owner pursuant to this article on behalf of a beneficiary in order to apply distributions from the account toward qualified higher education expenses at eligible educational institutions, as defined in Section 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law.
(j) "Savings trust agreement" means the agreement entered into between the board and the account owner establishing a savings trust account.
(k) "Qualified higher education expense" means any higher education expense, as defined in Section 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law.
(l) "Qualified withdrawal" means a withdrawal by an account owner or beneficiary for qualified higher education expenses or as otherwise permitted under Section 529 of the Internal Revenue Code of 1986, as amended, without a penalty required under the Internal Revenue Code.
SECTION 3. Section 37-155-11, Mississippi Code of 1972, is amended as follows:
37-155-11. (1) The board shall make prepaid tuition contracts available for the: (a) junior college plan; (b) senior college plan; and (c) junior-senior college plan.
(a) Junior College Plan. Through the junior college plan, a prepaid tuition contract shall provide tuition and required fees for the beneficiary to attend a public community or junior college for the number of undergraduate credit hours * * * required for a certificate or an associate degree awarded by a public community or junior college, not to exceed a maximum of two (2) years.
(b) Senior College Plan. Through the senior college plan, a prepaid tuition contract shall provide prepaid tuition and required fees for the beneficiary to attend a public senior college or university for the number of undergraduate credit hours * * * required for a baccalaureate degree awarded by a public senior college or university, not to exceed a maximum of five (5) years.
(c) Junior-Senior College Plan. Through the junior-senior college plan, a prepaid tuition contract shall provide prepaid tuition and required fees for the beneficiary to attend:
(i) A public community or junior college for the number of undergraduate credit hours * * * required for a person to receive a certificate or associate degree awarded by a public community or junior college, not to exceed a maximum of two (2) years; and
(ii) A public senior college or university for the number of credit hours * * * required for the person to receive a baccalaureate degree awarded by a public senior college or university, not to exceed a maximum of five (5) years.
(2) Subject to any academic restrictions relating to hourly course loads imposed by the institution at which a beneficiary is enrolled, the beneficiary may determine the number of credit hours that the beneficiary will take during each quarter, semester or term, as the case may be, and the prepaid tuition contract shall provide the beneficiary's entire tuition and fees, including any additional hourly tuition for coursework taken in excess of the typical full-time hourly course load as defined by the institution for tuition payment purposes, for that quarter, semester or term. However, the total, cumulative prepaid tuition and fees a beneficiary receives under a prepaid tuition contract may not exceed the amount authorized for the applicable plan under subsection (1) of this section.
SECTION 4. Section 37-155-21, Mississippi Code of 1972, is amended as follows:
37-155-21. (1) The board shall furnish without charge to each purchaser an annual statement of:
(a) The amount paid by the purchaser under the prepaid tuition contract;
(b) The number of credit hours and years originally covered by the contract;
(c) The number of credit hours and years remaining under the contract; and
(d) Any other information the board determines by rule is necessary or appropriate.
(2) The board shall furnish a statement complying with subsection (1) to a purchaser or beneficiary on written request. The board may charge a reasonable fee for each statement furnished under this subsection.
SECTION 5. This act shall take effect and be in force from and after July 1, 2007.