MESP ACT AMENDMENTS H.B. 5782: FLOOR ANALYSIS
House Bill 5782 (as reported without amendment)
Sponsor: Representative Gene DeRossett
House Committee: Tax Policy
Senate Committee: Finance
CONTENT
The bill would amend the Michigan Education Savings Program (MESP) Act to do the following:
-- Delete the requirement that distributions from an MESP account be used to pay for qualified expenses incurred after the account is established.
-- Permit an estate or trust to establish an MESP account.
-- Expand the permissible methods for making contributions to MESP accounts.
-- Allow an account owner to transfer ownership of an MESP account to another eligible individual or entity.
In addition, the bill would remove the following requirements: that the designated beneficiary certify before a distribution that the funds will be spent on qualified higher education expenses within a reasonable time after the distribution; that the designated beneficiary provide documentation of payment of qualified expenses within 30 days of the distribution; and that the MESP retain an account balance large enough to collect any penalties owed if the documentation is not produced.
MCL 390.1472 et al. Legislative Analyst: J.P. Finet
FISCAL IMPACT
The bill would have no fiscal impact on State or local government.
Date Completed: 9-17-04 Fiscal Analyst: Bill Bowerman
floor\hb5782 Analysis available @ http://www.michiganlegislature.org
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. hb5782/0304