The bill amends the existing law regarding the low-income family postsecondary savings accounts incentive program, specifically altering the role of the state treasurer and the structure of the program. Notably, it removes the treasurer's authority to accept and approve applications for the program starting in 2028. Additionally, the bill reduces the number of grants available from 1,200 to 1,000 applications per year and decreases the number of audits required under the program. The treasurer will also be responsible for implementing an audit process for certain withdrawals, ensuring that funds are used appropriately.

Furthermore, the bill specifies that the treasurer will no longer need to approve withdrawals prospectively, but will conduct retrospective audits of at least 10 withdrawals each year from 2025 to 2027 to determine their qualification status. If a withdrawal is deemed nonqualified, the participant must refund the matching portion, with interest accruing on unpaid amounts. The treasurer is also tasked with submitting a report on the program's performance by January 31 of 2026, 2027, and 2028, detailing various metrics related to the program's operation and success.

Statutes affected:
As introduced: 75-648, 75-650
Sub for: 75-650