1 SB132
2 209498-2
3 By Senator Givhan
4 RFD: Governmental Affairs
5 First Read: 02-FEB-21
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1 SB132
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4 ENROLLED, An Act,
5 To amend Sections 16-33C-3 and 16-33C-10, Code of
6 Alabama 1975, relating to the Wallace-Folsom Savings
7 Investment Plan Act; to revise the name of the ACES Program
8 from the Alabama College Education Savings Program to the
9 Alabama Comprehensive Education Savings Program; and to
10 clarify the meanings of certain terms pursuant to federal law.
11 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
12 Section 1. Sections 16-33C-3 and 16-33C-10 of the
13 Code of Alabama 1975, are amended to read as follows:
14 "16-33C-3.
15 "The following terms as used in this chapter shall
16 have the meanings ascribed to them, unless the context clearly
17 indicates otherwise:
18 "(1) ABLE PROGRAM. The Achieving a Better Life
19 Experience Program established pursuant to this chapter and
20 defined in Section 529A of the Internal Revenue Code of 1986,
21 as amended, or other applicable federal law, to assist
22 individuals and families to save private funds to support
23 individuals with disabilities to maintain health,
24 independence, and quality of life.
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1 "(2) ABLE SAVINGS ACCOUNT. An individual ABLE trust
2 fund account established by a contributor pursuant to this
3 chapter to apply distributions from the account toward
4 qualified disability expenses for an eligible designated
5 beneficiary, both terms as defined in Section 529A of the
6 Internal Revenue Code of 1986, as amended, or other applicable
7 federal law.
8 "(3) ABLE TRUST FUND. The fiduciary trust fund
9 established pursuant to this chapter comprised of separate and
10 segregated ABLE savings accounts as established by savings
11 agreements.
12 "(4) ACES ADMINISTRATIVE FUND. The ACES
13 Administrative Fund created in Section 16-33C-10.
14 "(5) ACES PROGRAM. The Alabama College Comprehensive
15 Education Savings Program, a qualified tuition program
16 established pursuant to this chapter and as defined in Section
17 529 of the Internal Revenue Code of 1986, as amended, or other
18 applicable federal law, to assist individuals and families to
19 save funds for the purpose of meeting the qualified higher
20 education expenses of the designated beneficiary, as those
21 terms are defined and used in Section 529 of the Internal
22 Revenue Code of 1986, as amended, or other applicable federal
23 law.
24 "(6) ACES SAVINGS ACCOUNT. An individual ACES
25 account held in the ACES Trust Fund established by a
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1 contributor pursuant to this chapter in order to apply
2 distributions from the account toward qualified higher
3 education expenses at eligible educational institutions for an
4 eligible designated beneficiary, with as those terms as are
5 defined in Section 529 of the Internal Revenue Code of 1986,
6 as amended, or other applicable federal law.
7 "(7) ACES TRUST FUND. The fiduciary trust fund
8 created in Section 16-33C-10.
9 "(8) CONTRIBUTOR. Any person who contributes money
10 to an ACES Program savings account or an ABLE Program savings
11 account established pursuant to this chapter on behalf of a
12 designated beneficiary and who is listed as the owner of the
13 savings account.
14 "(9) DESIGNATED BENEFICIARY. The eligible individual
15 named as the beneficiary of an ABLE savings account, ACES
16 savings account, or PACT contract established pursuant to this
17 chapter.
18 "(10) LEGISLATURE. The Legislature of Alabama.
19 "(11) PACT ADMINISTRATIVE FUND. The PACT
20 Administrative Fund created in subsection (c) of Section
21 16-33C-6.
22 "(12) PACT BOARD. The board of directors and
23 trustees of the PACT Trust Fund.
24 "(13) PACT CONTRACT. A contract entered into by the
25 board and a participant in the PACT Program.
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1 "(14) PACT PROGRAM. The Alabama Prepaid Affordable
2 College Tuition Program created in subsection (a) of Section
3 16-33C-6.
4 "(15) PACT TRUST FUND. The fiduciary trust fund
5 created in subsection (b) of Section 16-33C-6.
6 "(16) PLAN. The Wallace-Folsom Savings Investment
7 Plan established pursuant to this chapter that consists of the
8 PACT Program, the ACES Program, and the ABLE Program.
9 "(17) PURCHASER. A person who is obligated to make
10 contract payments in accordance with a PACT contract entered
11 into pursuant to this chapter.
12 "(18) SAVINGS AGREEMENT. An agreement entered into
13 between the Savings Board and a contributor establishing an
14 ACES or ABLE savings account.
15 "(19) SAVINGS BOARD. The Board of Directors of the
16 ABLE Program and ACES Program, and trustees of the ABLE Trust
17 Fund and ACES Trust Fund.
18 "(20) STATE TREASURER. The State Treasurer of
19 Alabama.
20 "16-33C-10.
21 "(a) The ACES Program is established as one college
22 savings alternative under the plan whereby contributors open
23 ACES savings accounts according to savings agreements for the
24 payment of qualified higher education costs expenses for a
25 designated beneficiary at eligible educational institutions,
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1 as those terms as are defined or used in Section 529 of the
2 Internal Revenue Code of 1986, as amended, or other applicable
3 federal law. The ACES Program includes the ACES Trust Fund,
4 the ACES Administrative Fund, and the ACES Opportunity
5 Enhancement Fund created pursuant to this chapter. The ACES
6 Program may be marketed under a different name than ACES.
7 "(b) The ACES Trust Fund is hereby created and shall
8 be comprised of separate ACES savings accounts held in
9 segregated accounts as established by savings agreements.
10 Funds contributed to the ACES savings accounts established
11 pursuant to the ACES Program are held in trust by the Savings
12 Board for the sole benefit of the contributor and designated
13 beneficiary. Contributions which are received by the ACES
14 Program from any public or private source, except those which
15 are payments of administrative fees, shall be placed in the
16 ACES Trust Fund.
17 "(c) The ACES Administrative Fund is hereby created
18 as a separate fund within the State Treasurer's office for the
19 purpose of administering the ACES Program. The ACES
20 Administrative Fund shall accept, deposit, and disburse funds
21 for the purpose of administering the ACES Program. All funds
22 in the ACES Administrative Fund are hereby irrevocably pledged
23 to the payment of the administrative costs of the ACES
24 Program. Funds in the ACES Administrative Fund may be invested
25 by the State Treasurer in any investment facility allowed by
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1 this chapter. Any interest and earnings from the investment of
2 funds in the ACES Administrative Fund shall be deposited to,
3 and become a part of, the ACES Administrative Fund for use as
4 authorized by this chapter. All funds in the ACES
5 Administrative Fund at the end of each fiscal year of the
6 State of Alabama shall remain in that administrative fund and
7 be automatically carried forward and available to be
8 appropriated by the Alabama Legislature for the administration
9 of the ACES Program.
10 "(d) The State Treasurer is authorized to retain the
11 services of one or more persons as staff members in order to
12 implement and manage the ACES Program. Any expenses incurred
13 shall be paid from the ACES Administrative Fund.
14 "(e) Property and income of the ACES Trust Fund,
15 ACES Administrative Fund, and the ACES Opportunity Enhancement
16 Fund shall be exempt from all taxation by the state and by all
17 of its political subdivisions.
18 "(f) The ACES Opportunity Enhancement Fund is
19 created as a separate fund within the State Treasurer's office
20 for the purpose of enhancing and providing higher education
21 opportunities and programs, as the Savings Board deems
22 necessary and appropriate. The fund may receive contributions
23 from individuals, private business entities, public
24 corporations, and contractual agreements with service
25 providers. The funds shall be utilized in the discretion and
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1 solely at the direction of the Savings Board. The amounts on
2 deposit in the fund shall not constitute property of the
3 state, and the state shall have no claim or interest in them."
4 Section 2. This act shall become effective on the
5 first day of the third month following its passage and
6 approval by the Governor, or its otherwise becoming law.
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1
2
3
4 President and Presiding Officer of the Senate
5
6 Speaker of the House of Representatives
7 SB132
8 Senate 02-MAR-21
9 I hereby certify that the within Act originated in and passed
10 the Senate.
11
12 Patrick Harris,
13 Secretary.
14
15
16
17 House of Representatives
18 Passed: 01-APR-21
19
20
21 By: Senator Givhan
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Statutes affected:
Introduced: 16-33C-3, 16-33C-10, 16-33C-3, 16-33C-10
Enrolled: 16-33C-3, 16-33C-10, 16-33C-3, 16-33C-10