This 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, the treasurer will no longer have the authority to accept or 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 audit process for certain withdrawals is also clarified, allowing for retrospective audits of withdrawals made in the years 2025, 2026, and 2027.

Furthermore, the bill specifies that contributions made by account owners will be matched by the state on a dollar-for-dollar basis, with a cap of $600 for any calendar year. It also establishes a process for auditing withdrawals to ensure they are qualified, with penalties for nonqualified withdrawals, including the requirement for participants to refund the matching portion of any nonqualified withdrawal. The treasurer is tasked with preparing annual reports on the program's performance, including the number of accounts opened and the success of the program in meeting its objectives, until 2028. The existing section of K.S.A. 75-650 is repealed, and the new provisions will take effect upon publication in the Kansas register.

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