An Act To Make Changes to the Maine College Savings Program

Sec. 1. 20-A MRSA §11473, sub-§1,  as enacted by PL 1997, c. 732, §4, is amended to read:

Sec. 2. 20-A MRSA §11473, sub-§5,  as enacted by PL 1997, c. 732, §4, is amended to read:

Sec. 3. 20-A MRSA §11474, sub-§2,  as enacted by PL 1997, c. 732, §4, is amended to read:

Sec. 4. 20-A MRSA §11476,  as enacted by PL 1997, c. 732, §4, is amended to read:

§ 11476. Investment options and parameters

The authority, with the advice of the advisory committee, may provide investment options for a participant within the program fund to the extent permitted by Internal Revenue Code provisions addressing qualified state tuition programs. The authority, with the advice of the advisory committee, shall invest , or cause to be invested, the amounts on deposit in the program fund in a reasonable manner to achieve the objectives of each fund, exercising the discretion and care of a prudent person in similar circumstances with similar objectives. A participant or designated beneficiary may not direct the investment of any amounts on deposit in the program fund, except to the extent allowed pursuant to provisions of the Internal Revenue Code addressing qualified state tuition programs. The authority shall give due consideration to rate of return, term or maturity, diversification and liquidity of investments within the program fund or any account in the program fund pertaining to the projected disbursements and expenditures from the program fund and the expected payments, deposits, contributions and gifts to be received.

Sec. 5. 20-A MRSA §11484, sub-§1, ¶B-1,  as enacted by PL 2001, c. 417, §19, is repealed.

Sec. 6. 20-A MRSA §11484, sub-§1, ¶B-2,  as enacted by PL 2001, c. 417, §19, is amended to read:

Sec. 7. 20-A MRSA §11484, sub-§1, ¶D,  as enacted by PL 1997, c. 732, §4, is repealed.

Sec. 8. 20-A MRSA §11484, sub-§1, ¶E  is enacted to read:

Sec. 9. Effective date. Those sections of this Act that amend the Maine Revised Statutes, Title 20-A, section 11473, subsections 1 and 5; section 11474, subsection 2; and section 11476 take effect on June 30, 2012. That section of this Act that repeals Title 20-A, section 11484, subsection 1, paragraph B-1 and that section of this Act that amends Title 20-A, section 11484, subsection 1, paragraph B-2 take effect at the expiration of the term of the member with knowledge of student financial assistance or when the position is vacant. That section of this Act that repeals Title 20-A, section 11484, subsection 1, paragraph D and that section of this Act that enacts Title 20-A, section 11484, subsection 1, paragraph E take effect at the expiration of the terms of the member representing public institutions of higher education and the member representing private institutions of higher education or when the positions are vacant.

summary

This bill makes changes to the Maine College Savings Program, also known as NextGen or the NextGen College Investing Plan, by vesting the act of "holding" the program fund in the authority and not the Treasurer of State; by clarifying that in holding the program fund, the authority may invest, reinvest or commingle the assets in the program fund as authorized or may cause such assets to be invested, reinvested or commingled. The bill alters the composition of the Advisory Committee on College Savings by changing the position held by a member with knowledge of student financial assistance to an at-large position and by changing the Governor-appointed positions held by 2 members representing institutions of higher education with experience in and knowledge of higher education financial and investment matters to one Governor-appointed member with experience in and knowledge of institutional investment of funds and one member appointed by the chair of the authority's board of directors who is a member of the authority's board of directors, other than the Treasurer of State.