Board of Regents hears update on House Bill 749 to move 529 account operations to third-party manager

Interim executive director Dr. Susanna Craig told the Board of Regents on April 27 that House Bill 749, sponsored by Representative Carver, would transfer operational control of state-held 529 savings products — START, K‑12 START and ABLE accounts — to a third‑party manager while preserving the board’s regulatory oversight. "This change is going to allow our constituents and our account holders the ability to manage the money that they have put into these accounts more efficiently," Craig said.

Why it matters: The proposal aims to modernize account servicing, improve online and phone access for account holders and position the programs for more efficient management. Craig said the state treasurer continues to set interest rates for the principal protection and earnings enhancement components and that the board must promulgate rules annually as required by state statute.

What the board heard: Craig told regents the measure has moved quickly through the House — clearing House Education, House Appropriations and the House floor — and was referred to the Senate on the day of the meeting. She described the expected customer experience change as similar to modern online banking and emphasized that regulatory oversight would remain with state authorities.

What’s next: The board received the briefing as an informational update; there was no formal vote tied to the bill at the meeting. If the legislation advances in the Senate and becomes law, the management and contractual details for a third‑party vendor would be developed as implementation proceeds.