Committee approves bill enabling nonprofits to open 529 accounts for elementary-school students

The Revenue & Tax committee voted to pass legislation that would let qualified nonprofit foundations work with school districts and the state treasurer's office to open 529 college-savings accounts for elementary students, with parents given the opportunity to opt out.

Senator Clark Tucker introduced the measure and invited Dan Andrews, identified as CEO of Tempest Realty Gardeners speaking on behalf of the Grove Foundation, to describe the proposal. Andrews said the foundation's goal is to pair financial education with a $529 seed account for each student, but privacy restrictions currently make it difficult to enroll students without parental participation. He said the bill would permit schools to share the minimum information needed with the treasurer's 529 office (such as Social Security number and date of birth) so the treasurer's office — not the nonprofit — would hold confidential data and establish accounts; parents could opt out.

"This simply allows a nonprofit to set up a 529 account with the treasurer's office," Senator Tucker said, describing coordination with the treasurer's staff and noting there is no fiscal impact. He added the treasurer's office and bill sponsors worked together on the language.

No members of the public registered opposition in the transcript. The committee approved the bill by voice vote; no roll-call tally was provided in the record excerpt.

The committee record shows the treasurer's office participated in drafting and supports the language; the bill as discussed would not require the nonprofit to receive confidential student information.