Amendment #739 to H4200

Higher Education Pilot Program For College Savings

Representatives Sannicandro of Ashland, Garballey of Arlington, Walsh of Framingham, Rogers of Cambridge, Heroux of Attleboro, Schmid of Westport, Gentile of Sudbury, Ultrino of Malden, Khan of Newton, McMurtry of Dedham, Gordon of Bedford, Gonzalez of Springfield, Linsky of Natick, Holmes of Boston and Rushing of Boston move to amend the bill in section 2 by inserting after item 7100-4000 the following item: 

XXXX-XXXX   For the Massachusetts Educational Financing Authority to assist in carrying out the Lower Income Family Postsecondary Education Savings Incentive Matching Grant Pilot Program established by section ___ of this act; provided, that funds appropriated herein shall be credited to the Lower Income Family Postsecondary Education Savings Incentive Matching Grant Pilot Program Trust Fund established in section ____   of this act …………………$700,000;

and by inserting the following section:

SECTION    .   (a)  As used in this section, the following words shall, unless the context otherwise requires, have the following meanings:

(1)   "Application”, an application for a matching grant under the pilot program.

(2)   “Authority”, the Massachusetts Educational Financing Authority established under Chapter 803 of the Acts of 1982, as amended.

(3)  "Federal poverty level", the most recent poverty income guidelines published in the calendar year by the U.S. Department of Health and Human Services.

(4)  "Participant”, a qualified individual or family who has been approved for a matching grant under the pilot program.

(5)  "Pilot program", the Lower Income Family Postsecondary Education Savings Incentive Matching Grant Pilot Program established by this section.

(6)  "Qualified individual or family", an individual or family who resides in one of the 5 cities or towns selected by the Authority to participate in the pilot program, and whose household income is not more than 250% of the federal poverty level for the tax year prior to the year in which the application is submitted.

(b)  There shall be a Lower Income Family Postsecondary Education Savings Incentive Matching Grant Pilot Program, herein referred to as the pilot program.  The purpose of the pilot program is to help lower income individuals and families save for postsecondary education through college savings accounts established with the Authority by providing a state matching grant for the savings.

(c)   The Authority shall:

(1) Select 5 cities or towns in the state to participate in the pilot program; provided, that the city or town  shall be a gateway municipality, as defined in section 3A of chapter 23A of the General Laws, or a town having a population of 65,000 or greater;

(2)  Implement and administer the pilot program, and may enter into any contracts or agreements with other entities, including Inversant, it deems necessary to assist in developing and carrying out the pilot program, including, but not limited to, involving parents whose children are part of the pilot program by providing educational awareness, engagement and planning for postsecondary education;

(3)   Develop marketing plans, educational and promotional material for the pilot program;

(4)   Prescribe the procedure for, and requirements relating to, the submission and approval of applications;

(5)   Adopt any rules and regulations and policies deemed necessary for implementation and administration of the pilot program; and

(6)   Do all things necessary and proper to carry out the purposes of this section.

(d)  Applications shall be submitted to the Authority in the manner and form required by the Authority.  Applications shall be accompanied by any information deemed necessary by the Authority.  Applications, with proof of income, must be submitted each year using the applicant's household income from the previous tax year.

(e)  The Authority may approve up to a total of 500 applications from qualified individuals or families residing in one of the 5 cities or towns selected by the Authority to participate in the pilot program.  Applications shall be approved on a first come, first served basis; provided, that the Authority shall strive to ensure to the extent feasible that an equal number of applications are approved in each selected city or town. The Authority shall provide written notice, to an applicant, of the approval or non-approval of the person's application.

(f)  The amount of contributions made to an account by a participant who establishes a college savings account with the Authority shall be matched by the state if the participant contributes at least $150 during the calendar year for which the application has been approved. The aggregate of all matching amounts for any participant shall not exceed $500 in any calendar year.

(g)   The Authority shall deposit in the college savings account of each participant the amount determined by the Authority to meet the matching obligation due to the participant under subsection (f) for the preceding calendar year.

(h)  The Authority shall ensure that all withdrawals of matching funds are used for postsecondary education.

(i)  Not later than 2 years after the commencement of the pilot program, the Authority shall submit to the clerks of the house and senate, the secretary of administration and finance, the house and senate committees on ways and means, and the joint committee on higher education a report evaluating the impact of the pilot program.  The report shall include the number of accounts opened under the pilot program, the amount of moneys contributed to accounts by the participants, the average income of the participants, an analysis of the success of the pilot program in meeting the purpose of the program, a recommendation as to whether the pilot program should be continued or expanded, and any other information deemed appropriate by the Authority, together with any legislation it deems necessary to carry its recommendations into effect.

(j)  Notwithstanding any general or special laws to the contrary, monies deposited in a college savings account established under this section shall not count against any recipient’s income, assets, or any other eligibility standard in qualifying for any benefits under Transitional Aid to Families with Dependent Children, or other state programs, including, but not limited to, housing, fuel assistance, health care, or student financial aid whether in the form of scholarships, grants, tuition or fee waivers, loans or any other state assistance in paying for postsecondary education.

(k) There is hereby established and set up on the books of the commonwealth a separate fund to be known as the Lower Income Family Postsecondary Education Savings Incentive Matching Grant Pilot Program Trust Fund, hereinafter referred to as the fund, to which shall be credited any appropriations, bond proceeds or other monies authorized by the general court and specifically designated to be credited thereto. The Authority shall hold the fund in an account or accounts separate from other funds or accounts.  Amounts credited to the fund shall be used by the Authority, without further appropriation, to carry out the Lower Income Family Postsecondary Education Savings Incentive Matching Grant Pilot Program.  Any appropriations, proceeds or other monies unexpended at the end of the fiscal year shall remain in the fund and may be expended by the Authority without further appropriation.

Additional co-sponsor(s) added to Amendment #739 to H4200

Higher Education Pilot Program For College Savings