SESSION OF 2001


SUPPLEMENTAL NOTE ON
SENATE SUBSTITUTE FOR HOUSE BILL NO. 2017


As Recommended by Senate Committee on
Ways and Means




Brief (1)



Senate Sub. for HB 2017 creates the Kansas Postsecondary Education Savings Program Expense Fund. The fund would be used to record expenses incurred by the Treasurer's Office relating to the administration of the Kansas Postsecondary Education Savings Program.





Background



HB 2017 was introduced by the Legislative Educational Planning Committee at the request of the State Treasurer.



The Kansas Postsecondary Education Savings Program, also known as the Learning Quest Savings Program, was created by the 1999 Legislature to provide a tax deferred means for saving for education. The original legislation gave the State Treasurer broad authority as the administrator of the program. The Treasurer could choose to perform all of the functions of the program in-house or contract with a third party provider for any or all of those functions.



The State Treasurer has contracted with American Century Investments to provide investment services, account administration, customer service, and marketing. Expenses incurred by the State Treasurer relating to the program are to be reimbursed by American Century Investments.



As introduced, the bill would also have abolished the Kansas Postsecondary Education Savings Trust Fund. A representative of the State Treasurer testified in favor of the bill and reported to the Senate Ways and Means Committee that upon further reflection it would be desirable to retain the Trust Fund.



No opponents testified on the bill.



The fiscal note submitted by the Division of the Budget on the bill as introduced indicates that the bill would have no fiscal impact.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi