AB 315

Under current law, the College Savings Program Board administers a college

savings program, commonly referred to as "EdVest," under which a person may

establish and contribute money to a college savings account to cover the college

expenses of a beneficiary. As part of EdVest, current law establishes all of the

following:

1. A college savings program bank deposit trust fund, consisting in part of

contributions to college savings accounts in which the investment instrument is an

account held by a state or national bank, a state or federal savings bank, a state or

federal savings and loan association, or a savings and trust company that has its

main or home office or a branch office located in this state and that is insured by the

Federal Deposit Insurance Corporation.

2. A college savings program credit union deposit trust fund, consisting in part

of contributions to college savings accounts in which the investment instrument is

an account held by a state or federal credit union, including a corporate central credit

union, that has its main or home office or a branch office located in this state and that

is insured by the National Credit Union Administration.

This bill eliminates the requirement that the bank, savings and loan

association, savings and trust company, or credit union (financial institution) in

which the investment instrument of a college savings account is held have its main

or home office or a branch office located in this state. The bill also provides that such

an investment instrument may be an account held

or issued

by a financial

institution.