2007 House Bill 5138 / Public Act 153

Revise Michigan education savings plan details

Introduced in the House

Aug. 23, 2007

Introduced by Rep. Tim Melton (D-29)

To authorize broadening the investment options in the Michigan Education Savings Plan account program, which is a tax deferred college savings account program (a “529 plan”), contributions to which qualify for state and federal income tax deductions. The bill would also explicitly allow withdrawals from an MESP account to pay the cost of a student attending one of the U.S. service academies, including West Point, the Naval Academy at Annapolis, the Air Force Academy in Colorado Springs, the United States Coast Guard Academy, or the United States Merchant Marine Academy.

Referred to the Committee on Education

Sept. 11, 2007

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Oct. 9, 2007

Passed in the House 103 to 0 (details)

Received in the Senate

Oct. 10, 2007

Referred to the Committee on Finance

Dec. 13, 2007

Reported without amendment

With the recommendation that the bill pass.

Amendment offered

To allow fund managers to annually charge up to 2.0 percent of net asset value, rather than 1.5 percent.

The amendment passed by voice vote

Passed in the Senate 34 to 0 (details)

To authorize broadening the investment options in the Michigan Education Savings Plan account program, which is a tax deferred college savings account program (a “529 plan”), contributions to which qualify for state and federal income tax deductions. The bill would also explicitly allow withdrawals from an MESP account to pay the cost of a student attending one of the U.S. service academies, including West Point, the Naval Academy at Annapolis, the Air Force Academy in Colorado Springs, the United States Coast Guard Academy, or the United States Merchant Marine Academy.

Received in the House

Dec. 13, 2007

To concur with the Senate-passed version of the bill.

Passed in the House 108 to 0 (details)

Signed by Gov. Jennifer Granholm

Dec. 20, 2007