SB 862 - This act creates the "MOSTARS Higher Education Savings Program". The program shall be administered by the MOSTARS Higher Education Savings Board which is established in this act. Powers and duties of the Board are granted to develop and implement the program.

The Board may enter into a savings program agreement with a contributor person on behalf of beneficiary who intends to attend a college or university. An agreement shall not guarantee that the beneficiary will be admitted to, allowed to continue to attend or graduate from a college or university. A participation agreement shall clearly disclose any risk associated with depositing moneys with the Board. No more than eight thousand dollars may be contributed annually pursuant to a participation agreement.

Any participant may cancel a participation agreement at will. Return of funds may be subject to penalties established by the Board.

The assets of the savings program and any income therefrom shall be exempt from all taxation by the state or any of its political subdivisions. Income earned or received from the fund by any participant or beneficiary shall not be subject to state income tax. Contributions made to the savings plan shall not be counted towards the calculation of gross income for state income tax purposes.

Rules promulgated by the Board shall be subject to review by the Joint Committee on Administrative Rules.

The Director of Investment of the State Treasurer's office shall review the financial status and investment policy of the program as well as the participation rate in the program and report the findings annually to the Board.

Money accruing to and deposited in individual accounts shall not be part of "total state revenues" as defined in sections 17 and 18 of Article X of the Missouri Constitution and the expenditure of such revenues shall not be an expense of state government under section 20 of Article X of the Missouri Constitution.
OTTO FAJEN