IIB 

111TH CONGRESS 

2D SESSION H. R. 4178 

IN THE SENATE OF THE UNITED STATES 

APRIL 22, 2010 

Received; read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

AN ACT 

To amend the Federal Deposit Insurance Act to provide 

for deposit restricted qualified tuition programs, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Deposit Restricted 

3 Qualified Tuition Programs Act of 2010’’. 

4 SEC. 2. DEPOSIT RESTRICTED QUALIFIED TUITION PRO5 GRAMS. 

6 Section 18 of the Federal Deposit Insurance Act (12 

7 U.S.C. 1828) is amended by adding at the end the fol8 lowing new subsection: 

9 ‘‘(y) DEPOSIT RESTRICTED QUALIFIED TUITION

10 PROGRAMS.— 

11 ‘‘(1) DEFINITIONS.—For purposes of this sub12 section, the following definitions shall apply: 

13 ‘‘(A) DEPOSIT RESTRICTED QUALIFIED

14 TUITION PROGRAM.—The term ‘deposit re15 stricted qualified tuition program’ means a 

16 qualified tuition program in which— 

17 ‘‘(i) the cash provided by a contrib18 utor to such a qualified tuition program 

19 may be invested only in deposits insured by 

20 the Corporation; 

21 ‘‘(ii) the contributor may become a 

22 participant in the program by depositing 

23 funds through the program into an account 

24 at a depository institution participating in 

25 the program; and 


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1 ‘‘(iii) the program may include mul2 tiple depository institutions, subject to the 

3 requirements of section 529 of the Internal 

4 Revenue Code of 1986, as amended. 

5 ‘‘(B) QUALIFIED TUITION PROGRAM.—The 

6 term ‘qualified tuition program’ has the same 

7 meaning as in section 529 of the Internal Rev8 enue Code of 1986, as amended. 

9 ‘‘(2) TREATMENT.—Notwithstanding any other 

10 provision of the law, the following provisions shall 

11 apply with respect to any deposit restricted qualified 

12 tuition program: 

13 ‘‘(A) A deposit restricted qualified tuition 

14 program shall be deemed to be an ‘identified 

15 banking product’ (as defined in Section 206 of 

16 the Gramm-Leach-Bliley Act of 1999) for pur17 poses of the Securities Exchange Act of 1934. 

18 ‘‘(B) None of the following shall be treated 

19 as a security, as defined in section 2(a)(1) the 

20 Securities Act of 1933, section 3(a)(10) of the 

21 Securities Exchange Act of 1934, or section 

22 2(a)(36) of the Investment Company Act of 

23 1940: 


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1 ‘‘(i) The deposits of cash at an in2 sured depository institution relating to a 

3 deposit restricted tuition program. 

4 ‘‘(ii) Any certificate of deposit or 

5 other instrument of an insured depository 

6 institution evidencing any such deposit. 

7 ‘‘(iii) The rights and obligations of 

8 participants in a deposit restricted quali9 fied tuition program arising from section 

10 529 of the Internal Revenue Code, as 

11 amended. 

12 ‘‘(C) In no event shall a deposit restricted 

13 qualified tuition program, the State entity des14 ignated by statute to oversee such program, the 

15 administrator appointed to operate the program 

16 on behalf of the State or a participating deposi17 tory institution, be deemed to be an issuer of a 

18 security or to be an investment company (as de19 fined in section 3(a) of the Investment Com20 pany Act of 1940).’’. 

21 SEC. 3. BUDGET COMPLIANCE. 

22 The budgetary effects of this Act, for the purpose of 

23 complying with the Statutory Pay-As-You-Go Act of 2010, 

24 shall be determined by reference to the latest statement 

25 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 


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1 Act, submitted for printing in the Congressional Record 

2 by the Chairman of the Committee on the Budget of the 

3 House of Representatives, provided that such statement 

4 has been submitted prior to the vote on passage. 

Passed the House of Representatives April 20, 2010. 

Attest: LORRAINE C. MILLER, 

Clerk. 


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