SENATE BILL NO. 1229
A bill to establish an investment and development savings program for the purpose of expanding access to higher education through savings; to provide for state contributions toward higher education savings for certain children in this state; and to provide for the powers and duties of certain state governmental officers and entities.
the people of the state of michigan enact:
Sec. 1. This act may be cited as the "Michigan kids investment and development savings (KIDS) program act".
(a) "Account" means an education savings account established under the Michigan education savings program act, 2000 PA 161, MCL 390.1471 to 390.1486.
(b) "Beneficiary" means an eligible child receiving funds under the program.
(c) "Department" means the department of treasury.
(d) "Eligible educational institution", "internal revenue code", and "qualified higher education expenses", mean those terms as defined in section 2 of the Michigan education savings program act, 2000 PA 161, MCL 390.1472.
(e) "Enhanced deposit" means an initial or supplemental contribution into a KIDS Account or another plan option determined by the department under section 10.
(f) "Foster child" means a child receiving foster care as that term is defined in section 2 of the foster care and adoption services act, 1994 PA 203, MCL 722.952.
(g) "Fund" means the Michigan kids investment and development savings program fund created in section 6.
(h) "KIDS Account" means an account in which designated funding for eligible children is held.
(i) "Low-income households" means households with a total annual adjusted gross income less than $75,000.00 or households identified by the department by other means as low-income for purposes of the program.
(j) "Participant" means 1 of the following:
(i) A parent or legal guardian of an eligible child.
(ii) A parent or legal guardian of a child described in section 4(9).
(iii) Any private individual or entity who contributes money to the program.
(k) "Program" means the Michigan kids investment and development savings program established under this act.
(l) "Public school" means that term as defined in section 5 of the revised school code, 1976 PA 451, MCL 380.5.
(m) "Pupil membership count day" means that term as used in section 6 of the school aid act of 1979, 1979 PA 94, MCL 388.1606, and includes any supplemental or alternate pupil membership count days as may be provided in article I of the school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772.
(n) "Seed deposit" means an initial contribution into a KIDS Account for a child born on or after a date determined by the department.
Sec. 3. The Michigan kids investment and development savings program is established in the department. The department shall administer the program for the purpose of expanding access to higher education through savings.
Sec. 4. (1) Each child born on or after a date determined by the department under subsection (2) who is a resident of this state at the time of birth is eligible for the program.
(2) The date designated by the department for which eligibility commences must be no later than October 1, 2023.
(3) No later than 90 days after a birth certificate is registered for a child described in subsection (1), pursuant to section 2821 of the public health code, 1978 PA 368, MCL 333.2821, the department of health and human services shall provide the department with identifiable birth data for the child in a file format as defined by the department. The birth data must include the child's name and birth date and the name and contact information of each parent or legal guardian of the child, including the parent's or legal guardian's street address and, if provided to the department of health and human services, the parent's or legal guardian's mobile telephone number and email address. The department of health and human services may provide additional identifiable birth data to the department, upon request, as may be necessary for the department's administration of the program. The birth data is confidential and must not be disclosed except as necessary for the program. No more than 90 days after receiving the birth data from the department of health and human services, the department shall notify at least 1 parent or legal guardian of each eligible child about the program. The notification must include information on all of the following:
(a) How the parent or legal guardian may opt out of the program.
(b) The KIDS Account opened for the child under subsection (6).
(c) How the parent or legal guardian may establish a separate account under the Michigan education savings program act, 2000 PA 161, MCL 390.1471 to 390.1486.
(4) The department shall make a child's designated balance in a KIDS Account viewable by the child's parent or legal guardian through a secured internet link.
(5) The department shall establish rules and regulations for a program recipient child, and the child's parents or legal guardians, to be notified of the money deposited and accrued in the child's KIDS Account, and rules and regulations regarding the establishment and operation of program components, including, but not limited to, the claims process, necessary documentation, deadlines for the claims, an appeals procedure, and any forfeiture procedures. A KIDS Account recipient chil