State Run Retirement Savings Plans
Colorado. The Colorado legislature adjourned on May 10. HB 1290, a mandatory-on-employer auto-IRA plan, which passed the House but was postponed indefinitely in Senate Committee on April 26, is now officially dead. SIFMA submitted a letter of opposition.
Hawaii. The Hawaii legislature has adjourned for the year. Bills carry over to next year; resolutions do not. HCR 38 / SCR 16 , which would have convened a legislative working group to investigate and identify strategies to promote greater retirement savings for private sector employees, are therefore dead. SCR 16 had passed the Senate. HCR 38 did not make it out of House Committee.
New Jersey. A. 4853, which would establish a "Garden State MEP," without references to the DOL safe harbor rule, no employer mandate, and is open to individuals, was introduced May 18.
North Carolina. H. 633, which differs from the typical “secure choice” bills in that it does not have an employer mandate or references to the DOL safe harbor rule. This bill was referred to the Pensions and Retirement Committee on April 10. SIFMA submitted comments.
Vermont. SB 135 , which would, among other things, adopt and implement a voluntary Multiple Employer Plan (MEP), passed both houses on May 18 after being conferenced.
Tennessee. SB 948 / HB 1194, the Voluntary Employee Retirement Accounts Program Act with bipartisan sponsorship, did not move this year but will carry over to next year.
Texas. HB 3601 , left pending in Pensions April 24, would create a state-administered auto-IRA savings program and a state-sponsored multiple employer plan.
529 College Savings Plans
California. AB 34 & SB 1175 would provide for a $100 deposit into certain California 529 accounts owned by state residents. AB 34 was placed on suspense file May 10. SB 1175 was amended twice and referred to a second committee. ACR 57, which would designate May 29, 2017, as 529 College Savings Day, to raise awareness about the importance of saving for college with the help of 529 college savings plans, passed the Assembly May 22.
Florida. SB 896 , which would revise the financial disclosures required to be filed by certain Florida Prepaid College Board members, passed both houses May 3. SB 1572 , which would authorize a parent to direct a financial institution trustee of his or her child's account to use funds for specified costs of attending specified private schools or programs, died May 5.
Illinois. HB 3179 / SB 1758 would modify the term ‘qualified expenses’ for the College Savings Pool to add computer equipment and certain special needs services. HB 3179 was read for a 3rd time May 18; SB 1758 passed the Senate April 27 and was referred to House Rules. HB 3691, to establish and fund education savings accounts to provide funds for qualified education expenses of program participants, passed the House and was amended in Senate Higher Education May 16.
Maine. LD 620 which would have restored an income tax deduction for contributions to a qualified tuition program and set the deduction at a maximum of $1,000 annually per designated beneficiary, died May 11.
Minnesota. The Omnibus Tax Conference Comm. final bill ( HF 4 / SF 2255), was vetoed by the Governor on May 15. Negotiations between the Governor and Legislature produced an amended tax bill, which includes the 529 tax parity provision, to be considered during the recently called special session (regular session ended May 22).
Nevada. SB 76 , which would expand the list of authorized investments for certain public entities, including the NV Higher Education Prepaid Tuition Trust Fund, passed the Senate but failed to make the Assembly deadline. SB 242 , which would permit the Board to delegate to the State Treasurer the powers and duties necessary to administer the NV Higher Education Prepaid Tuition Program and permit unused credits to be applied to graduate-level studies, passed the Senate but failed to make the Assembly deadline.
New Jersey. A. 217 / S. 832 would allow a gross income tax deduction for amounts contributed to the New Jersey Better Educational Savings Trust (NJBEST) Program for taxpayers with gross incomes under $500,000. S. 832 was referred to Budget & Appropriations May 18.
New York State. A. 7450 , which would increase the contribution that a resident taxpayer may make to family tuition accounts for each beneficiary during a taxable year, was referred to Ways & Means April 26.
Texas. SB 3 , as amended, which would create Education Savings Account (ESA) and Tax Credit Scholarship (TCS) programs, passed the Senate as amended and was referred to House Public Education May 12.
Wisconsin. SB 75 / AB 108 would create a nonrefundable corporate income and franchise tax credit for certain amounts contributed by an employer into an employee’s college savings account. SB 75 was heard in Revenue, Financial Institutions and Rural Issues May 24. AB 108 had a public hearing May 9.
California. SB 218, which would authorize the transfer of all amounts in the designated beneficiary’s ABLE account to an ABLE account for another individual specified by either the designated beneficiary or the estate of the designated beneficiary upon the death of the designated beneficiary, will be heard in Appropriations May 25.
Illinois. SB 2017, to create a tax credit for contributions to ABLE accounts, was re-referred to Assignments May 5 (died). A similar bill, HB 3163 passed the House and was re-referred to Senate Assignments May 19.
Oregon. SB 1027 , which would prohibit the Department of Human Services and Oregon Health Authority from seeking payment from amounts in ABLE accounts. The bill passed the Senate and was heard in House Human Services & Housing May 18.
Texas. SB 1764 , which would provide that a guardian of an estate may be terminated if the assets are placed in an ABLE account with the ward as beneficiary, was placed on the Local, Consent & Res. Calendar May 24. SB 377 would make changes to the state ABLE Program, including residency changes, and would give the Board the power to enter into agreements to engage services through a consortium of states or with another entity to act as plan manager. The bill passed both houses May 21.