This measure would designate May 29, 2017, as 529 College Savings Day, to raise awareness about the importance of saving for college with the help of 529 college savings plans.

This measure would designate May 29, 2017, as 529 College Savings Day, to raise awareness about the importance of saving for college with the help of 529 college savings plans.

This measure would designate May 29, 2017, as 529 College Savings Day, to raise awareness about the importance of saving for college with the help of 529 college savings plans.

WHEREAS, 529 college savings plans are important tools for California families that want to save for their childrens college education, offering a diverse range of investment options, tax-deferred growth, and withdrawals free of state and federal taxes when those withdrawals are used for qualified higher education expenses such as tuition, fees, books, certain room and board costs, computer equipment, and required supplies; and

WHEREAS, While the first college savings plans were developed by states in 1988 as innovative programs designed to help families and students save for higher education expenses, it was not until the enactment of Section 529 of the Internal Revenue Code by Congress in 1996 that college savings plans began to rapidly gain popularity across the country; and

WHEREAS, Today, 49 states and the District of Columbia offer 529 college savings plans, 12.7 million 529 accounts have been opened, more than $266 billion have been saved for future higher education expenses, and more than one million students nationwide have withdrawn funds from 529 accounts to help pay higher education expenses; and

WHEREAS, The ScholarShare College Savings Plan, which has served as Californias official state-sponsored 529 college savings plan since its launch in 1999, has grown to more than $7.03 billion in total plan assets held in over 282,500 ScholarShare accounts; and

WHEREAS, The ScholarShare College Savings Plan has helped students meet their higher education goals with over $379 million withdrawn in 2016 for qualified higher education expenses at over 946 colleges and universities; and

WHEREAS, In California, from 200607 through 201617, tuition rates at the University of California, the California State University, and the California Community Colleges increased 100 percent, 117 percent, and 130 percent, respectively, and over the past 40 years, tuition rates have consistently increased at two to three times the rate of inflation every year; and

WHEREAS, Federal financial aid awards have shifted away from student grants to providing access to guaranteed student loans so that, today, nearly 63 percent of all federal financial aid is in the form of loans, substantially increasing the number of college graduates who will face the burden of repaying significant student loan debt upon entering the workforce; and

WHEREAS, According to the Federal Reserve Bank of New York, student loan debt has now reached $1.4 trillion nationally, which rose from $548 billion in 2007; and

WHEREAS, When Americans are burdened with student loan debt, they are not able to buy homes, cars, and other products that boost our economy; and

WHEREAS, College savings plans, such as the ScholarShare College Savings Plan, help families to limit or eliminate future student loan debt by helping them save for future higher education expenses; and

WHEREAS, The contributions families make today pay off in the form of an increased earning potential for their children in the future, with a college graduate earning an average of $1 million more than a high school graduate during his or her career according to the United States Census Bureau; and

WHEREAS, May 29th is recognized nationally as 529 College Savings Day to help raise awareness across the country of the importance of saving for college with the help of 529 college savings plans; now, therefore, be it

Resolved by the Assembly of the State of California, the Senate thereof concurring, That the Legislature of the State of California hereby proclaims May 29, 2017, as 529 College Savings Day; and be it further

Resolved, That the Chief Clerk of the Assembly transmit copies of this resolution to the author for appropriate distribution.

WHEREAS, 529 college savings plans are important tools for California families that want to save for their childrens college education, offering a diverse range of investment options, tax-deferred growth, and withdrawals free of state and federal taxes when those withdrawals are used for qualified higher education expenses such as tuition, fees, books, certain room and board costs, computer equipment, and required supplies; and

WHEREAS, While the first college savings plans were developed by states in 1988 as innovative programs designed to help families and students save for higher education expenses, it was not until the enactment of Section 529 of the Internal Revenue Code by Congress in 1996 that college savings plans began to rapidly gain popularity across the country; and

WHEREAS, Today, 49 states and the District of Columbia offer 529 college savings plans, 12.7 million 529 accounts have been opened, more than $266 billion have been saved for future higher education expenses, and more than one million students nationwide have withdrawn funds from 529 accounts to help pay higher education expenses; and

WHEREAS, The ScholarShare College Savings Plan, which has served as Californias official state-sponsored 529 college savings plan since its launch in 1999, has grown to more than $7.03 billion in total plan assets held in over 282,500 ScholarShare accounts; and

WHEREAS, The ScholarShare College Savings Plan has helped students meet their higher education goals with over $379 million withdrawn in 2016 for qualified higher education expenses at over 946 colleges and universities; and

WHEREAS, In California, from 200607 through 201617, tuition rates at the University of California, the California State University, and the California Community Colleges increased 100 percent, 117 percent, and 130 percent, respectively, and over the past 40 years, tuition rates have consistently increased at two to three times the rate of inflation every year; and

WHEREAS, Federal financial aid awards have shifted away from student grants to providing access to guaranteed student loans so that, today, nearly 63 percent of all federal financial aid is in the form of loans, substantially increasing the number of college graduates who will face the burden of repaying significant student loan debt upon entering the workforce; and

WHEREAS, According to the Federal Reserve Bank of New York, student loan debt has now reached $1.4 trillion nationally, which rose from $548 billion in 2007; and

WHEREAS, When Americans are burdened with student loan debt, they are not able to buy homes, cars, and other products that boost our economy; and

WHEREAS, College savings plans, such as the ScholarShare College Savings Plan, help families to limit or eliminate future student loan debt by helping them save for future higher education expenses; and

WHEREAS, The contributions families make today pay off in the form of an increased earning potential for their children in the future, with a college graduate earning an average of $1 million more than a high school graduate during his or her career according to the United States Census Bureau; and

WHEREAS, May 29th is recognized nationally as 529 College Savings Day to help raise awareness across the country of the importance of saving for college with the help of 529 college savings plans; now, therefore, be it

Resolved by the Assembly of the State of California, the Senate thereof concurring, That the Legislature of the State of California hereby proclaims May 29, 2017, as 529 College Savings Day; and be it further

Resolved, That the Chief Clerk of the Assembly transmit copies of this resolution to the author for appropriate distribution.

WHEREAS, 529 college savings plans are important tools for California families that want to save for their childrens college education, offering a diverse range of investment options, tax-deferred growth, and withdrawals free of state and federal taxes when those withdrawals are used for qualified higher education expenses such as tuition, fees, books, certain room and board costs, computer equipment, and required supplies; and

WHEREAS, While the first college savings plans were developed by states in 1988 as innovative programs designed to help families and students save for higher education expenses, it was not until the enactment of Section 529 of the Internal Revenue Code by Congress in 1996 that college savings plans began to rapidly gain popularity across the country; and

WHEREAS, Today, 49 states and the District of Columbia offer 529 college savings plans, 12.7 million 529 accounts have been opened, more than $266 billion have been saved for future higher education expenses, and more than one million students nationwide have withdrawn funds from 529 accounts to help pay higher education expenses; and

WHEREAS, The ScholarShare College Savings Plan, which has served as Californias official state-sponsored 529 college savings plan since its launch in 1999, has grown to more than $7.03 billion in total plan assets held in over 282,500 ScholarShare accounts; and

WHEREAS, The ScholarShare College Savings Plan has helped students meet their higher education goals with over $379 million withdrawn in 2016 for qualified higher education expenses at over 946 colleges and universities; and

WHEREAS, In California, from 200607 through 201617, tuition rates at the University of California, the California State University, and the California Community Colleges increased 100 percent, 117 percent, and 130 percent, respectively, and over the past 40 years, tuition rates have consistently increased at two to three times the rate of inflation every year; and

WHEREAS, Federal financial aid awards have shifted away from student grants to providing access to guaranteed student loans so that, today, nearly 63 percent of all federal financial aid is in the form of loans, substantially increasing the number of college graduates who will face the burden of repaying significant student loan debt upon entering the workforce; and

WHEREAS, According to the Federal Reserve Bank of New York, student loan debt has now reached $1.4 trillion nationally, which rose from $548 billion in 2007; and

WHEREAS, When Americans are burdened with student loan debt, they are not able to buy homes, cars, and other products that boost our economy; and

WHEREAS, College savings plans, such as the ScholarShare College Savings Plan, help families to limit or eliminate future student loan debt by helping them save for future higher education expenses; and

WHEREAS, The contributions families make today pay off in the form of an increased earning potential for their children in the future, with a college graduate earning an average of $1 million more than a high school graduate during his or her career according to the United States Census Bureau; and

WHEREAS, May 29th is recognized nationally as 529 College Savings Day to help raise awareness across the country of the importance of saving for college with the help of 529 college savings plans; now, therefore, be it

Resolved by the Assembly of the State of California, the Senate thereof concurring, That the Legislature of the State of California hereby proclaims May 29, 2017, as 529 College Savings Day; and be it further

Resolved, That the Chief Clerk of the Assembly transmit copies of this resolution to the author for appropriate distribution.

 THIRD READING 

Bill No: ACR 57

Author: McCarty (D), Nazarian (D), and Ting (D), et al.

Introduced: 4/17/17

Vote: 21

ASSEMBLY FLOOR: Read and adopted, 5/22/17

SUBJECT: 529 College Savings Day

SOURCE: Author

DIGEST:

This resolution designates May 29, 2017, as 529 College Savings Day, to raise awareness about the importance of saving for college with the help of 529 college savings plans.

ANALYSIS: This resolution makes the following legislative findings:

1. 529 college savings plans are important tools for California families that want to save for their children’s college education, offering a diverse range of investment options, tax-deferred growth, and withdrawals free of state and federal taxes when those withdrawals are used for qualified higher education expenses.
2. The ScholarShare College Savings Plan, which has served as California’s official state-sponsored 529 college savings plan since its launch in 1999, has grown to more than $7.03 billion in total plan assets held in over 282,500 ScholarShare accounts. Over $379 million was withdrawn in 2016 for qualified higher education expenses at over 946 colleges and universities.
3. In California, from 2006-07 through 2016-17, tuition rates increased at the University of California (100%), the California State University (117%), and the California Community Colleges (130%), and over the past 40 years, tuition rates have consistently increased at two to three times the rate of inflation every year.
4. College savings plans, such as the ScholarShare College Savings Plan, help families to limit or eliminate future student loan debt by helping them save for future higher education expenses.
5. The contributions families make today pay off in the form of an increased earning potential for their children in the future, with a college graduate earning an average of $1 million more than a high school graduate during his or her career according to the United States Census Bureau.

This resolution proclaims May 29, 2017, as 529 College Savings Day, to raise awareness about the importance of saving for college with the help of 529 college savings plans.

Related/Prior Legislation

ACR 168 (Medina, Resolution Chapter 68, Statutes of 2016) designated May 29, 2016, as 529 College Savings Day, to raise awareness about the importance of saving for college with the help of 529 college savings plans.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT: (Verified 5/30/17)

California State Treasurer John Chiang

OPPOSITION: (Verified 5/30/17)

None received

Prepared by: Melissa Ward / SFA / (916) 651-1520

6/1/17 17:20:06

**** END ****

ASSEMBLY THIRD READING

ATR Bill Id:ACR 57

Author:(McCarty, et al.)

As Introduced Ver:April 17, 2017

Majority vote

SUMMARY: Designates May 29, 2017, as 529 College Savings Day, to raise awareness about the importance of saving for college with the help of 529 college savings plans. Specifically, this resolution makes the following legislative findings:

1. 529 college savings plans are important tools for California families that want to save for their children's college education, offering a diverse range of investment options, tax-deferred growth, and withdrawals free of state and federal taxes when those withdrawals are used for qualified higher education expenses such as tuition, fees, books, certain room and board costs, and required supplies.
2. The ScholarShare College Savings Plan, which has served as California's official state-sponsored 529 college savings plan since its launch in 1999, has grown to more than $7.03 billion in total plan assets held in over 282,500 ScholarShare accounts.
3. Today, 49 states and the District of Columbia offer 529 college savings plans, 12.7 million 529 accounts have been opened, more than $266 billion have been saved for future higher education expenses, and more than one million students nationwide have withdrawn funds from 529 accounts to help pay higher education expenses.
4. Federal financial aid awards have shifted away from student grants to providing access to guaranteed student loans so that, today, nearly 63% of all federal financial aid is in the form of loans, substantially increasing the number of college graduates who will face the burden of repaying significant student loan debt upon entering the workforce.
5. According to the Federal Reserve Bank of New York, student loan debt has now reached $1.4 trillion nationally, which rose from $548 billion on 2007.
6. Americans burdened with student loan debt are not able to buy homes, cars, and other products that boost our economy.
7. College savings plans, such as the ScholarShare College Savings Plan, help families to limit or eliminate future student loan debt by helping them save for future higher education expenses.

FISCAL EFFECT: None

Analysis Prepared by: Nicole Willis / RLS. / (916) 319-2800 FN: 0000332

Date of Hearing: May 11, 2017

ASSEMBLY COMMITTEE ON RULES

Ken Cooley, Chair

ABPCA Bill Id:ACR 57

Author:(McCarty) – As Introduced Ver:April 17, 2017

SUBJECT: 529 College Savings Day

SUMMARY: Designates May 29, 2017, as 529 College Savings Day, to raise awareness about the importance of saving for college with the help of 529 college savings plans. Specifically, this resolution makes the following legislative findings:

1. 529 college savings plans are important tools for California families that want to save for their children's college education, offering a diverse range of investment options, tax-deferred growth, and withdrawals free of state and federal taxes when those withdrawals are used for qualified higher education expenses such as tuition, fees, books, certain room and board costs, and required supplies.
2. The ScholarShare College Savings Plan, which has served as California's official state-sponsored 529 college savings plan since its launch in 1999, has grown to more than $7.03 billion in total plan assets held in over 282,500 ScholarShare accounts.
3. Today, 49 states and the District of Columbia offer 529 college savings plans, 12.7 million 529 accounts have been opened, more than $266 billion have been saved for future higher education expenses, and more than one million students nationwide have withdrawn funds from 529 accounts to help pay higher education expenses.
4. Federal financial aid awards have shifted away from student grants to providing access to guaranteed student loans so that, today, nearly 63 percent of all federal financial aid is in the form of loans, substantially increasing the number of college graduates who will face the burden of repaying significant student loan debt upon entering the workforce.
5. According to the Federal Reserve Bank of New York, student loan debt has now reached $1.4 trillion nationally, which rose from $548 billion on 2007.
6. Americans burdened with student loan debt are not able to buy homes, cars, and other products that boost our economy.
7. College savings plans, such as the ScholarShare College Savings Plan, help families to limit or eliminate future student loan debt by helping them save for future higher education expenses.

FISCAL EFFECT: None

REGISTERED SUPPORT / OPPOSITION:

Support

John Chiang, California State Treasurer

Opposition

None on file

Analysis Prepared by: Nicole Willis / RLS. / (916) 319-2800