An Act To Make Changes to the Maine College Savings Program
Maine Legislature, Session 125, LD 1173
Committee: Education and Cultural Affairs
Sponsors: RICHARDSON, LANGLEY
Amends: 20-A MRSA §11473, 20-A MRSA §11474, 20-A MRSA §11476, 20-A MRSA §11484

Legislative Document 
No. 1173 
H.P. 871 
House of Representatives, March 17, 2011 
An Act To Make Changes to the Maine College Savings Program 
Submitted by the Treasurer of State pursuant to Joint Rule 204. 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative RICHARDSON of Carmel. 
Cosponsored by Senator LANGLEY of Hancock. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  20-A MRSA §11473, sub-§1, as enacted by PL 1997, c. 732, §4, is 
amended to read: 
1.  Creation.  The Maine College Savings Program Fund, referred to in this chapter 
as the "the program fund," is established as a nonlapsing fund to be held, directed and 
administered by the authority and held by the Treasurer of State.  The Treasurer of State 
authority shall keep the program fund segregated from all other funds held by the 
Treasurer of State authority and shall invest and reinvest, or cause to be invested and 
reinvested, the program fund for the benefit of the program under the direction of and 
with the advice of the advisory committee.  The program fund so administered is a fund 
held on behalf of participants and beneficiaries who are deemed specifically named 
persons for the purposes of Title 5, section 135-A. 
Sec. 2.  20-A MRSA §11473, sub-§5, as enacted by PL 1997, c. 732, §4, is 
amended to read: 
5.  Common investment of funds.  The authority may commingle, or cause or allow 
to be commingled, amounts credited to some or all accounts for investment purposes and 
may provide for the application of program earnings to pay any administrative costs of 
the program fund prior to crediting program earnings to participants' accounts. 
Sec. 3.  20-A MRSA §11474, sub-§2, as enacted by PL 1997, c. 732, §4, is 
amended to read: 
2.  Invest funds.  With the advice of the advisory committee, direct the Treasurer of 
State to invest and reinvest, or cause to be invested and reinvested, money in the program 
fund in any investments determined by the authority to be appropriate, notwithstanding 
any general statutory limitations on investments of public funds specifically determined 
to be inapplicable to the program fund. The authority must invest, or cause to be invested, 
money from the program fund in financial institutions located in the State to the extent 
determined reasonable by the authority; 
Sec. 4.  20-A MRSA §11476, as enacted by PL 1997, c. 732, §4, is amended to 
read: 
§11476.  Investment options and parameters 
The authority, with the advice of the advisory committee, may provide investment 
options for a participant within the program fund to the extent permitted by Internal 
Revenue Code provisions addressing qualified state tuition programs.  The authority, with 
the advice of the advisory committee, shall invest, or cause to be invested, the amounts on 
deposit in the program fund in a reasonable manner to achieve the objectives of each 
fund, exercising the discretion and care of a prudent person in similar circumstances with 
similar objectives.  A participant or designated beneficiary may not direct the investment 
of any amounts on deposit in the program fund, except to the extent allowed pursuant to 
provisions of the Internal Revenue Code addressing qualified state tuition programs.  The 
authority shall give due consideration to rate of return, term or maturity, diversification 
and liquidity of investments within the program fund or any account in the program fund 
pertaining to the projected disbursements and expenditures from the program fund and 
the expected payments, deposits, contributions and gifts to be received. 
Sec. 5.  20-A MRSA §11484, sub-§1, ¶B-1, as enacted by PL 2001, c. 417, §19, 
is repealed. 
Sec. 6.  20-A MRSA §11484, sub-§1, ¶B-2, as enacted by PL 2001, c. 417, §19, 
is amended to read: 
B-2.  One member Two members appointed by the Governor from at large; 
Sec. 7.  20-A MRSA §11484, sub-§1, ¶D, as enacted by PL 1997, c. 732, §4, is 
repealed. 
Sec. 8.  20-A MRSA §11484, sub-§1, ¶E is enacted to read: 
E.  Two members representing institutions with experience in and knowledge of 
higher education financial and investment matters.  One member must be a member 
appointed by the Governor with experience in and knowledge of institutional 
investment of funds.  One member must be appointed by the chair of the authority’s 
board of directors who is a member of the authority’s board of directors other than 
the Treasurer of State. 
Sec. 9.  Effective date.  Those sections of this Act that amend the Maine Revised 
Statutes, Title 20-A, section 11473, subsections 1 and 5; section 11474, subsection 2; and 
section 11476 take effect on June 30, 2012.  That section of this Act that repeals Title 
20-A, section 11484, subsection 1, paragraph B-1 and that section of this Act that amends 
Title 20-A, section 11484, subsection 1, paragraph B-2 take effect at the expiration of the 
term of the member with knowledge of student financial assistance or when the position 
is vacant.  That section of this Act that repeals Title 20-A, section 11484, subsection 1, 
paragraph D and that section of this Act that enacts Title 20-A, section 11484, subsection 
1, paragraph E take effect at the expiration of the terms of the member representing 
public institutions of higher education and the member representing private institutions of 
higher education or when the positions are vacant. 
SUMMARY 
This bill makes changes to the Maine College Savings Program, also known as 
NextGen or the NextGen College Investing Plan, by vesting the act of "holding" the 
program fund in the authority and not the Treasurer of State; by clarifying that in holding 
the program fund, the authority may invest, reinvest or commingle the assets in the 
program fund as authorized or may cause such assets to be invested, reinvested or 
commingled.  The bill alters the composition of the Advisory Committee on College 
Savings by changing the position held by a member with knowledge of student financial 
assistance to an at-large position and by changing the Governor-appointed positions held 
by 2 members representing institutions of higher education with experience in and 
knowledge 
of 
higher 
education 
financial 
and 
investment 
matters 
to 
one 
Governor-appointed member with experience in and knowledge of institutional 
investment of funds and one member appointed by the chair of the authority's board of 
directors who is a member of the authority's board of directors, other than the Treasurer 
of State.