HCS HB 73 -- HIGHER EDUCATION SAVINGS PROGRAM (Luetkemeyer)

This substitute creates the Missouri Higher Education Deposit
Program.  The new program will provide an additional method to
invest savings for college on a tax-free basis ("529 Plan").  The
program will be administered by a seven-member board, consisting
of the Director of the Division of Finance, the Director of the
Department of Higher Education, the Commissioner of the Office of
Administration, and four private members appointed by the
Governor who have expertise in finance.  The board may enter into
deposit program participation agreements with financial
institutions in the state.  These institutions would be allowed
to set up 529 Plans for their customers, allowing citizens of the
state to invest their savings for college in a financial
institution within the state.

FISCAL NOTE:  Total Estimated Net Cost to General Revenue of
$59,283 to Unknown in FY 2004, $56,399 to Unknown in FY 2005, and
$57,814 to Unknown in FY 2006.  Expected to exceed $100,000
annually.

Missouri House of Representatives
Last Updated July 25, 2003 at 10:10 am