House of Representatives

SB 1085

college savings plan; financial aid

Sponsors: Senator Nichols; Representatives Norris, Landrum et al.

DP	Committee on Education
DP	Committee on Retirement and Government Operations
DP	Caucus and COW
x	As Passed the House

SB 1085 changes the manner in which a state student financial assistance program treats the balance in an account where the student is the designated beneficiary, for purposes of determining the income or financial need of the student or parent.

History

The Arizona Family College Savings Plan was established in 1997 and is overseen by the Arizona Commission for Postsecondary Education. The Arizona Family College Savings Plan allows for a person to open an individual trust account or a savings account for the purpose of paying the qualified higher education expenses of another person. State law exempts the money in the account from taxation when used to pay for qualified higher education expenses of the designated beneficiary (A.R.S. 15-1876).

Provisions

· Requires a state student financial assistance program to treat the balance in a student beneficiary account as neither an asset of the student’s parent, nor any other specified student aid when determining the income, assets, or financial need of a student or parent.

· Clarifies that the bill applies to state appropriated financial assistance programs.

· Allows the following institutions to administer state financial assistance programs in addition to colleges and universities: The Arizona Financial Aid Trust Program, the Leveraging Educational Assistance Program and the Arizona private Postsecondary Education Student Financial Assistance Program.

SB 1085 passed the Education Committee unamended.

SB 1085 passed the Retirement and Government Operations Committee unamended.

SB 1085 passed the House of Representatives unamended.

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44th Legislature

Second Regular Session 2 April 23, 2001

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