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ENROLLED
2026 Regular Session
HOUSE BILL NO. 749
BY REPRESENTATIVE CARVER AND SENATOR FOIL
1 AN ACT
2 To amend and reenact R.S. 17:3084(A)(14), 3085(3), 3086, 3092(13) and (14), 3093(C)(3)
3 and (D)(1)(f), 3095(A)(4) and (E)(2), 3100.2(12) and (13), 3100.3(B)(3) and
4 (C)(1)(f), and 3100.5(A)(4) and to enact R.S. 17:3090(E), 3099(I) and (J), 3100.5(G),
5 3100.8(I) and (J), Chapter 22-C of Title 17 of the Louisiana Revised Statutes of
6 1950, to be comprised of R.S. 17:3100.21 through 3100.26, and R.S. 17:3129.4(D),
7 relative to savings account programs; to provide for the administration of the ABLE
8 Account Program, the Louisiana Student Tuition Assistance and Revenue Trust
9 Program, and the Louisiana Student Tuition Assistance and Revenue Trust
10 Kindergarten Through Grade Twelve Program; to authorize the Louisiana Tuition
11 Trust Authority to enter into a contract with a program manager for the
12 administration of the program accounts and the investment of account funds; to
13 provide for the transfer of certain monies within the Louisiana Education Tuition and
14 Savings Fund to the program manager; to provide for the powers and duties of the
15 authority and the program manager; to require the authority to notify the presiding
16 officers of the legislature and the state treasurer of the execution of the contract; to
17 require the authority and the state treasurer to coordinate on the implementation of
18 account transfers; to provide for definitions; to provide for effectiveness; and to
19 provide for related matters.
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1 Be it enacted by the Legislature of Louisiana:
2 Section 1. R.S. 17:3084(A)(14), 3085(3), 3086, 3092(13) and (14), 3093(C)(3) and
3 (D)(1)(f), 3095(A)(4) and (E)(2), 3100.2(12) and (13), 3100.3(B)(3) and (C)(1)(f), and
4 3100.5(A)(4) are hereby amended and reenacted and R.S. 17:3090(E), 3099(I) and (J),
5 3100.5(G), 3100.8(I) and (J), Chapter 22-C of Title 17 of the Louisiana Revised Statutes of
6 1950, comprised of R.S. 17:3100.21 through 3100.26, and R.S. 17:3129.4(D) are hereby
7 enacted to read as follows:
8 §3084. Louisiana Tuition Trust Authority; rules; compliance with federal
9 requirements
10 A. The authority shall, by adoption of rules pursuant to the Administrative
11 Procedure Act and in consultation with the advisory council, provide for the
12 following functions, policies, and requirements of the program and shall ensure
13 through such rules that all of the following aspects of the program comply with all
14 applicable provisions of Section 529A of the Internal Revenue Code and with any
15 regulations pertaining to qualified ABLE programs issued pursuant thereto:
16 * * *
17 (14) The determination, until the date of the execution of a contract with a
18 program manager as provided in Chapter 22-C of this Title, of the rate of interest to
19 be paid on ABLE accounts of record at the close of a calendar year, provided that
20 such rate is not a negative rate and is approved by the state treasurer.
21 * * *
22 §3085. Louisiana Tuition Trust Authority; powers relative to the administration of
23 the program
24 In addition to any other powers conferred by this Chapter, the authority may
25 do any of the following:
26 * * *
27 (3) Make, execute, and deliver contracts, conveyances, and other instruments
28 necessary to the exercise and discharge of the powers and duties of the authority,
29 including contracts for the administration of ABLE accounts and the investment of
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1 account funds in accordance with federal law, this Chapter, and Chapter 22-C of this
2 Title.
3 * * *
4 §3086. ABLE account funds; investment
5 A. The state treasurer shall invest monies deposited in the ABLE accounts
6 in the same manner as prescribed by R.S. 17:3091 et seq. for the investment of
7 monies deposited in START Program accounts. Funds in ABLE accounts shall be
8 invested in such investment options and subject to the same requirements and
9 limitations for funds deposited in START Program accounts provided in R.S.
10 17:3091 et seq., except as otherwise provided in this Chapter.
11 B. Notwithstanding any provision of this Section or any other provision of
12 law to the contrary, beginning on the date of the execution of a contract between the
13 authority and a program manager as provided in Chapter 22-C of this Title, all ABLE
14 accounts may be administered, and all funds in such accounts may be invested, by
15 the program manager.
16 * * *
17 §3090. Achieving a Better Life Experience in Louisiana Fund
18 * * *
19 E. Notwithstanding any provision of this Section or any other law to the
20 contrary, beginning on the date of the execution of a contract between the authority
21 and a program manager as provided in Chapter 22-C of this Title, all ABLE accounts
22 may be administered, and all funds in such accounts may be invested, by the program
23 manager.
24 * * *
25 §3092. Definitions
26 As used in this Chapter, the following terms have the following meanings
27 unless the context clearly indicates otherwise:
28 * * *
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1 (13) "Variable earnings" means that portion of funds in an education savings
2 account invested in equities.
3 (14) "Variable Earnings Transaction Fund" means the subaccount established
4 by the state treasurer within the Louisiana Education Tuition and Savings Fund to
5 receive earnings funds as described in R.S. 17:3095(H) to be maintained by the state
6 treasurer until the date of the execution of a contract between the Louisiana Tuition
7 Trust Authority and a program manager as provided in Chapter 22-C of this Title.
8 §3093. Louisiana Tuition Trust Authority; creation; powers
9 * * *
10 C. In addition to any other powers conferred by this Chapter, the authority
11 may do any of the following:
12 * * *
13 (3) Make, execute, and deliver contracts, conveyances, and other instruments
14 necessary to the exercise and discharge of the powers and duties of the authority,
15 including contracts for the administration of education savings accounts and the
16 investment of account funds in accordance with federal law, this Chapter, and
17 Chapter 22-C of this Title.
18 * * *
19 D.(1) The authority shall, by adoption of rules pursuant to the Administrative
20 Procedure Act, provide for the following:
21 * * *
22 (f) The determination, until the date of the execution of a contract between
23 the authority and a program manager as provided in Chapter 22-C of this Title, of the
24 rate of interest to be paid on education savings accounts of record at the close of a
25 calendar year, provided that such rate is not a negative rate and is approved by the
26 state treasurer.
27 * * *
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1 §3095. Education savings accounts; types, use, limitations, and disclosures
2 A.
3 * * *
4 (4) Subject to the limitation imposed by R.S. 17:3098(B), the authority shall
5 guarantee, until the date of execution of a contract with a program manager as
6 provided in Chapter 22-C of this Title, payment of the redemption value of an
7 education savings account in which the deposits and interest are invested in fixed
8 earnings.
9 * * *
10 E.
11 * * *
12 (2) Prior to the close of the calendar year in which the program is
13 implemented and each year thereafter on a date specified by the authority, the state
14 treasurer shall determine and report to the authority, until the date of the execution
15 of the authority's contract with a program manager, the total earnings and the rate of
16 return achieved on deposits in the Louisiana Education Tuition and Savings Fund.
17 Based upon the fund's reported earnings, the authority shall establish, until the date
18 of the execution of the authority's contract with a program manager, the rate of
19 interest to be applied to the accumulated principal and interest in education savings
20 accounts of record, subject to approval by the state treasurer. The authority shall
21 calculate and credit the appropriate amount of interest earnings to each such account
22 prior to the close of the calendar year until the date of the execution of the authority's
23 contract with a program manager.
24 * * *
25 §3099. Louisiana Education and Tuition Savings Fund; use
26 * * *
27 I. The authority may enter into a contract with a program manager to
28 administer savings accounts and to invest the funds in such accounts as provided in
29 Chapter 22-C of this Title.
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1 J.(1) Beginning on the date of the execution of a contract between the
2 authority and a program manager as provided in Chapter 22-C of this Title, monies
3 in savings accounts as contained in the Louisiana Tuition and Savings Fund may be
4 administered and invested by the program manager.
5 (2) On the date of the execution of a contract between the authority and a
6 program manager as provided in Chapter 22-C of this Title, all monies deposited in
7 savings accounts as contained in this fund shall be transferred to the program
8 manager, except for the contents of the Savings Enhancement Fund, which shall
9 continue to be subject to the provisions of R.S. 17:3129.4.
10 * * *
11 §3100.2. Definitions
12 As used in this Chapter, the following terms have the following meanings
13 unless the context clearly indicates otherwise:
14 * * *
15 (12) "Variable earnings" means that portion of funds in an education savings
16 account invested in equities.
17 (13) "Variable Earnings Transaction Fund" means the subaccount established
18 by the state treasurer within the Tuition and Savings Fund to receive earnings funds
19 as described in R.S. 17:3100.5(F) to be maintained by the state treasurer until the
20 date of the execution of a contract between the authority and a program manager as
21 provided in Chapter 22-C of this Title.
22 §3100.3. Louisiana Tuition Trust Authority; administration; powers
23 * * *
24 B. In addition to any other powers conferred by this Chapter or any other
25 provision of law, the authority may do any of the following:
26 * * *
27 (3) Make, execute, and deliver contracts, conveyances, and other instruments
28 necessary to the exercise and discharge of the powers and duties of the authority,
29 including contracts for the administration of education savings accounts and
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1 investment of account funds in accordance with federal law, this Chapter, and
2 Chapter 22-C of this Title.
3 * * *
4 C.(1) The authority shall, by adoption of rules pursuant to the Administrative
5 Procedure Act, provide for the following:
6 * * *
7 (f) The Until the date of the execution of a contract with a program manager
8 as provided in Chapter 22-C of this Title, the rate of interest to be paid on education
9 savings accounts of record at the close of a calendar year. Such rate shall not be a
10 negative rate and shall be approved by the state treasurer.
11 * * *
12 §3100.5. Education savings accounts; types, use, limitations, and disclosures
13 A.
14 * * *
15 (4) Subject to the limitation imposed by R.S. 17:3100.7(B), the authority
16 shall guarantee, until the date of the execution of a contract with a program manager
17 as provided in Chapter 22-C of this Title, payment of the redemption value of an
18 education savings account in which the deposits and interest are invested in fixed
19 earnings.
20 * * *
21 G. The authority may enter into a contract with a program manager to
22 administer savings accounts and to invest the funds in such accounts as provided in
23 Chapter 22-C of this Title.
24 * * *
25 §3100.8. Louisiana Education and Tuition Savings Fund; use
26 * * *
27 I. The authority may enter into a contract with a program manager to
28 administer education savings accounts and to invest the funds in such accounts as
29 provided in Chapter 22-C of this Title.
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1 J.(1) Beginning on the date of the execution of a contract between the
2 authority and a program manager, monies in education savings accounts as contained
3 in the Louisiana Tuition and Savings Fund may be administered and invested by the
4 program manager.
5 (2) On the date of the execution of a contract between the authority and a
6 program manager, all monies deposited in savings accounts as contained in this fund
7 shall be transferred to the program manager, except for contents of the Savings
8 Enhancement Fund, which shall continue to be subject to the provisions of R.S.
9 17:3129.4.
10 * * *
11 CHAPTER 22-C. ADMINISTRATION OF SAVINGS ACCOUNTS AND
12 INVESTMENT OF ACCOUNT FUNDS
13 §3100.21. Definitions
14 For the purposes of this Chapter:
15 (1) "ABLE account" means a special savings account as defined in R.S.
16 17:3082 for purposes of the ABLE account program as provided in Chapter 22 of
17 this Title.
18 (2) "Authority" means the Louisiana Tuition Trust Authority.
19 (3) "Program manager" means an entity with which the authority contracts
20 for the administration of savings accounts provided for in Chapters 22, 22-A, and 22-
21 B of this Title and the investment of account funds as provided in this Chapter.
22 (4) "Savings account" means ABLE, START, and START K12 savings
23 accounts provided for, respectively, in Chapters 22, 22-A, and 22-B of this Title.
24 (5) "START account" means an education savings account as defined in R.S.
25 17:3092 for purposes of the START Program as provided in Chapter 22-A of this
26 Title.
27 (6) "START K12 account" means an education savings account as defined
28 in R.S. 17:3100.2 for purposes of the START K12 program as provided in Chapter
29 22-B of this Title.
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1 §3100.22. Legislative intent; administration and management of savings account
2 programs
3 A.(1) It is the intent of the legislature to provide for safe and efficient
4 administration of savings accounts and investment of savings account funds.
5 (2) Beginning on the date of the execution of a contract between the
6 authority and a program manager as provided in this Chapter, the provisions of this
7 Chapter shall govern the administration of savings accounts and the investment of
8 savings account funds.
9 B.(1) The provisions of this Chapter shall comply with the provisions of
10 Sections 529 and 529A of the Internal Revenue Code. Any provision of this Chapter
11 determined to be in conflict with any requirement of the code as applicable to a
12 qualified tuition program as defined in Section 529 of the federal Internal Revenue
13 Code, as amended, or a qualified ABLE program as defined in Section 529A of the
14 federal Internal Revenue Code, as amended, shall be superseded by such code
15 provision to the extent necessary to assure that the program continues to meet the
16 code's definition of each of these programs, as applicable.
17 (2) Any requirement of this Chapter determined to be more restrictive than
18 the requirements of the federal Internal Revenue Code as applicable to such a tuition
19 program or ABLE program may be modified to conform with code requirements by
20 the authority by rule promulgated in accordance with the Administrative Procedure
21 Act.
22 C. Nothing in this Chapter shall be construed to limit the powers and duties
23 of the authority as provided in Chapters 22, 22-A, and 22-B of this Title, including
24 but not limited to the provisions of R.S. 17:3085, 3093, and 3100.3.
25 §3100.23. The Louisiana Tuition Trust Authority; powers relative to the
26 administration of the savings account programs
27 A. The authority shall continue to exercise the powers and duties conferred
28 upon it pursuant to Chapters 22, 22-A, and 22-B of this Title. The authority may
29 enter into a contract with a program manager to administer savings accounts and to
30 invest the funds in such accounts. The program manager shall be required under the
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1 contract to provide qualifying savings account owners with access to enrollment in
2 an operating qualified tuition program as defined in Section 529 of the federal
3 Internal Revenue Code, as amended, or a qualified ABLE program as defined in
4 Section 529A of the federal Internal Revenue Code, as amended.
5 B. On the date of the execution of a contract between the authority and a
6 program manager:
7 (1) All savings accounts shall be transferred to the program manager for
8 account administration and investment of account funds.
9 (2) All deposited monies for savings accounts contained in the Tuition and
10 Savings Fund as provided in R.S. 17:3129.4 shall be transferred to the program
11 manager. The monies in the Savings Enhancement Fund shall remain in the state
12 treasury, and the treasurer shall continue to administer the Savings Enhancement
13 Fund in accordance with R.S. 17:3129.4 for the purposes provided in Chapters 22-A
14 and 22-B of this Title.
15 C. Beginning on the date of the execution of the contract with the program
16 manager, monies to be deposited in savings accounts shall be sent directly to the
17 program manager, except for cash deposits. The Board of Regents shall provide for
18 the receipt of cash deposits, their placement in a subaccount created for this purpose,
19 and their transmittal to the program manager along with any instructions received
20 from the account owner regarding investment selections.
21 §3100.24. Program manager; responsibilities
22 The program manager shall, at a minimum, do the following:
23 (1) Offer account owners a selection of investment options that shall include
24 an option equivalent to fixed earnings as defined in R.S. 17:3082, 3092, and 3100.2
25 that ensures the security of the principal and interest thereon and may include options
26 for variable earnings as defined in R.S. 17:3082, 3092, and 3100.2.
27 (2) Administer accounts according to valid instructions from account
28 owners.
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1 (3) Collect and report data to the legislative auditor for purposes of audits.
2 (4) Provide annual account owner statements.
3 (5) Provide tax documents to each account owner relative to his account,
4 including information on deposits for the previous calendar year and deposit totals
5 over time.
6 (6) Provide annual reporting of disbursements for expenses that do not meet
7 the definition of qualified disability expenses as defined in R.S. 17:3082, qualified
8 higher education expenses as defined in R.S. 17:3092, or qualified education
9 expenses as defined in R.S. 17:3100.2 to the Department of Revenue and the Internal
10 Revenue Service.
11 (7) Provide rollover reporting to the authority.
12 (8) Provide quarterly reporting to the authority on the total number of
13 accounts and total assets by account type, including the number of new accounts and
14 the number of closed accounts.
15 (9) Provide annual reporting to the authority of investment performance by
16 investment type.
17 (10) Enter into agreements with account owners' employers for payroll
18 deduction deposits.
19 (11) Provide annual accounting to START account owners providing their
20 progress in saving towards five years' of qualified higher education expenses as
21 provided in R.S. 17:3095(E).
22 (12) Determine the fully funded account amount for START accounts as
23 provided in 17:3096(D).
24 §3100.25. Notification of contract; presiding officers of the legislature and the state
25 treasurer
26 The authority shall submit written notification to the speaker of the House of
27 Representatives, the president of the Senate, and the state treasurer of the execution
28 of a contract with a program manager within twenty-four hours following such
29 execution.
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1 §3100.26. Implementation; coordination between Louisiana Tuition Trust Authority
2 and state treasurer
3 If the authority contracts with a program manager as authorized by this
4 Chapter, the authority and the state treasurer shall coordinate on the transfer of
5 information necessary for the migration of savings accounts and the investment of
6 account funds to the program manager and for the implementation of all other
7 provisions of this Chapter.
8 * * *
9 §3129.4. Louisiana Education Tuition and Savings Plan and Fund
10 * * *
11 D. Notwithstanding any provision of law to the contrary and as provided in
12 Chapter 22-C of this Title:
13 (1) Beginning on the date of the execution of a contract between the
14 authority and a program manager, monies in savings accounts as contained in the
15 Tuition and Savings Fund may be administered and invested by the program
16 manager.
17 (2) On the date of the execution of a contract between the authority and a
18 program manager, all monies deposited in savings accounts as contained in the
19 Tuition and Savings Fund shall be transferred to the program manager, except for the
20 contents of the Savings Enhancement Fund, which shall continue to be subject to the
21 provisions of this Section.
22 Section 2.(A) The Louisiana State Law Institute is hereby directed to redesignate the
23 provisions of R.S. 17:3100.21 through 3100.26, as contained in Chapter 22-C of Title 17 of
24 the Louisiana Revised Statutes of 1950 as enacted by Section 1 of this Act, as R.S. 17:3101
25 through 3106.
26 (B) The Louisiana State Law Institute is hereby directed to redesignate the
27 provisions of R.S. 17:3101 through 3109, as contained in Chapter 23 of Title 17 of the
28 Louisiana Revised Statutes of 1950, as R.S. 17:3111 through 3119.
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1 Section 3. This Act shall become effective upon signature by the governor or, if not
2 signed by the governor, upon expiration of the time for bills to become law without signature
3 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
4 vetoed by the governor and subsequently approved by the legislature, this Act shall become
5 effective on the day following such approval.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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