MI ED SAVINGS ACCOUNT: INVESTMENT                                                        H.B. 4887:

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

House Bill 4887 (as reported without amendment)

Sponsor:  Representative Anthony G. Forlini

House Committee:  Tax Policy

Senate Committee:  Finance

CONTENT

The bill would amend the Michigan Education Savings Program Act to remove restrictions on when an account owner of a Michigan education savings account may select from different investment strategies designed by a program manager.

Currently, an account owner may select from different investment strategies designed by a program manager in all of the following circumstances to the extent allowed under Section 529 of the Internal Revenue Code (IRC):

-- At the time any contribution is made to an account with respect to the amount of that contribution.

-- Once each calendar year with respect to the accumulated account balance.

-- When an account owner makes a change in designated beneficiary of an account.

The bill would eliminate these circumstances under which an account owner may select investment strategies, allowing an account owner to select from different investment strategies designed by a program manager to the extent allowed under Section 259 of the IRC. (That section governs a "qualified tuition program".)

MCL 390.1479                                                         Legislative Analyst:  Drew Krogulecki

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed:  2-22-16                                                         Fiscal Analyst:  David Zin

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.