HB 939 -- Missouri Higher Education Savings Program

Sponsor:  Harlan

This bill renames the MOSTARS savings program for higher
education costs as the Missouri Higher Education Savings
Program, and:

(1)  Allows state employees to authorize payroll deductions for
any qualified tuition savings program;

(2)  Increases from one to 2 the appointed members of the
Missouri Higher Education Savings Program board, one of whom is
selected by the Speaker of the House, and one of whom is
selected by the President Pro Tem of the Senate;

(3)  Establishes as a board responsibility the promulgation of
rules to ensure that the program qualifies as a qualified state
tuition program pursuant to Internal Revenue Service codes and
other applicable laws;

(4)  Eliminates the $8,000 per year maximum contribution per
account, and requires instead that the board establish the
maximum allowable contribution amount in keeping with any
requirements for the program to qualify as a qualified state
tuition program;

(5)  Requires the board to establish minimum time periods during
which contributions and earnings must be held by the program,
with penalties for early withdrawal of at least 10% of an
account's earnings;

(6)  Specifies other activities which will result in a penalty
of at least 10% of an account's earnings, including using the
moneys in an account for non-educational expenses; and

(7)  Authorizes a deduction from state adjusted gross income of
up to $8,000 contributed to the savings program, as long as
program requirements are met.