Second Regular Session Sixty-seventh General Assembly STATE OF COLORADO INTRODUCED LLS NO. 10-0432.01 Nicole Myers HOUSE BILL 10-1040 HOUSE SPONSORSHIP Kerr A., SENATE SPONSORSHIP (None), House Committees Senate Committees Education A BILL FOR AN ACT Concerning direction to collegeinvest to promote the use of college savings plans for adults to save in pursuit of their own postsecondary educational opportunities. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Under current law, anyone may open a college savings account (account) through collegeinvest for any beneficiary. The bill specifies that any adult may open an account for the benefit of himself or herself in furtherance of the adult's own postsecondary educational goals (lifelong learner). The bill directs collegeinvest to promote the use of accounts by lifelong learners and to develop and implement procedures to allow an employer to make a matching contribution to a lifelong learner's account for any contribution made by the lifelong learner. The bill directs collegeinvest to work with the financial institutions that manage the accounts to determine the savings options that would be most beneficial to lifelong learners and also directs the financial institutions to develop and implement a plan to expand the promotion of the college savings program to encourage adults to open accounts and participate as lifelong learners. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. 23-3.1-301, Colorado Revised Statutes, is amended to read: 23-3.1-301. Legislative declaration. (1) The general assembly hereby finds, determines, and declares that a choice of education opportunities will benefit the residents of the state of Colorado and that the establishment of a college savings program, to be administered by collegeinvest, will enhance the availability of postsecondary educational opportunities for residents. It is the intent of the general assembly to achieve this purpose through a public-private partnership using selected financial institutions to serve as account holders and managers of individual college savings accounts. (2) The general assembly further finds, determines, and declares that the college savings program administered by collegeinvest can enhance the availability of postsecondary educational opportunities for adults who are already in the workforce and therefore encourages adults to take advantage of the college savings program to further their own lifelong learning goals. SECTION 2. 23-3.1-302 (4), Colorado Revised Statutes, is amended, and the said 23-3.1-302 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read: 23-3.1-302. Definitions. As used in this part 3, unless the context otherwise requires: (4) "Designated beneficiary" or "beneficiary" means, with respect to an account, the person designated at the time the account is opened, or the person who replaces a designated beneficiary, as the person whose education expenses are expected to be paid from the account. A designated beneficiary or beneficiary may be an adult and may be the account owner. (7.5) "Lifelong learner" means an account owner who is also the account beneficiary and who opens an account in pursuit of his or her own postsecondary educational opportunities. SECTION 3. 23-3.1-304 (1) (n), Colorado Revised Statutes, is amended, and the said 23-3.1-304 (1) is further amended BY THE ADDITION OF THE FOLLOWING NEW PARAGRAPHS, to read: 23-3.1-304. Authority - purpose - powers - duties. (1) In addition to any other powers or duties specifically granted to the authority in part 2 of this article and in this part 3, the authority shall: (n) Do all things necessary and convenient to carry out the purposes of this part 3. Develop and implement a plan to promote the use of accounts by adults as lifelong learners; (o) Develop and implement procedures to allow an employer to make a matching contribution to a lifelong learner's account for any contribution made by the lifelong learner; and (p) Do all things necessary and convenient to carry out the purposes of this part 3. SECTION 4. 23-3.1-305, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read: 23-3.1-305. Financial institutions - managers - purpose - selection - requirements - contracts. (10) The authority shall work with the managers of the program in place on the effective date of this subsection (10) and any future managers to determine the most effective savings options offered by the managers for account owners who are lifelong learners. Each manager of the program that promotes the program pursuant to paragraph (f) of subsection (6) of this section shall develop and implement a plan to expand the promotion of the program to encourage adults to participate in the program as lifelong learners in pursuit of their own postsecondary educational opportunities. SECTION 5. The introductory portion to 23-3.1-306 (1), Colorado Revised Statutes, is amended to read: 23-3.1-306. Accounts - contributions - withdrawals - penalties - statements. (1) The program shall be operated through the use of accounts. An account may be opened by any person who desires to save for the qualified higher education expenses of a potential beneficiary, including himself or herself as a lifelong learner, by satisfying each of the following requirements: SECTION 6. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.