Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Tuition Account Assistance Act of
1995''.

SEC. 2. TREATMENT OF PARTICIPATION IN STATE PREPAID TUITION PROGRAM.

(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 (relating to items specifically excluded
from gross income) is amended by redesignating section 137 as section
138 and by inserting after section 136 the following new section:

''SEC. 137. TREATMENT OF PARTICIPATION IN STATE PREPAID TUITION
PROGRAM.

''(a) General Rule.--No amount shall be includible in the gross
income of any person by reason of--
''(1) education furnished to a designated beneficiary
pursuant to a qualified State prepaid tuition program, or
''(2) earnings on any amount paid to such a program for the
purchase of tuition credits for a designated beneficiary.
''(b) Qualified State Prepaid Tuition Program.--For purposes of
this section--
''(1) In general.--The term 'qualified State prepaid
tuition program' means a program established and maintained by
a State or any agency thereof under which--
''(A) an individual may purchase tuition credits
for tuition for the undergraduate education of a
designated beneficiary,
''(B) the value of the tuition credits is not
limited to the amounts paid for such credits and
earnings thereon,
''(C) the individual has no authority to direct the
investment of amounts paid to the program, and
''(D) the requirements of paragraph (3) are met
with respect to any refund of amounts paid to the
program.
Subparagraph (B) shall not apply to tuition at an institution
of higher education which is not required by the laws of such
State to participate in such program.
''(2) Treatment of excess tuition credits.--A program shall
not fail to be treated as a qualified State prepaid tuition
program by reason of permitting tuition credits to be used
other than for tuition for an undergraduate education if--
''(A) the only other purposes for which such
credits may be used are--
''(i) for tuition for a graduate degree
program of the designated beneficiary, or
''(ii) for education expenses (other than
tuition) of such beneficiary, and
''(B) the program provides a significant reduction
in the value of such credits if used for such other
purposes.
''(3) Restrictions on refunds.--A refund meets the
requirements of this paragraph if the refund meets the
requirements of any of the following subparagraphs.
''(A) Death or disability of designated
beneficiary.--A refund meets the requirements of this
subparagraph if the refund is made on account of the
death or disability of the designated beneficiary.
''(B) Scholarships.--A refund meets the
requirements of this subparagraph if the refund is made
on account of a scholarship received by the designated
beneficiary and the amount of the refund does not
exceed the amount of the scholarship which is used for
tuition.
''(C) Failure to gain admission.--A refund meets
the requirements of this subparagraph if the refund is
made on account of the failure of the designated
beneficiary to gain admission to an institution of
higher education (after making a good faith attempt, as
determined by the program, to gain admission) and the
amount of the refund does not exceed 90 percent of the
value of the designated beneficiary's account.
''(D) Other withdrawals from participation.--A
refund meets the requirements of this subparagraph if
the refund is made on account of a termination of
participation in the qualified State prepaid tuition
program (other than for a reason described in any of
the preceding subparagraphs) and the amount of the
refund does not exceed the lesser of--
''(i) 90 percent of the value of the
designated beneficiary's account, or
''(ii) the aggregate amount paid to such
program for the benefit of the designated
beneficiary.
''(c) Other Definitions.--For purposes of this section--
''(1) Tuition credit.--The term 'tuition credit' means the
amount of tuition which is paid by the qualified State prepaid
tuition program reason of payments to such program.
''(2) Tuition.--The term 'tuition' means tuition and
related expenses (as defined in section 117(b)(2)).
''(3) Designated beneficiary.--The term 'designated
beneficiary' means the individual designated at the
commencement of participation in the qualified State prepaid
tuition program (or any substitute beneficiary to the extent
provided by the program) as the beneficiary of amounts paid (or
to be paid) to the program.
''(4) Value of designated beneficiary's account.--The value
of a designated beneficiary's account is an amount equal to the
sum of--
''(A) the aggregate amount paid to the qualified
State prepaid tuition program for the benefit of such
designated beneficiary, plus
''(B) such amount's pro rata share of the earnings
(if any) on the aggregate amount paid to such program
for all designated beneficiaries.
''(5) Person.--The term 'person' includes a State and any
agency of a State.''
(b) Clerical Amendment.--The table of sections for such part III is
amended by striking the last item and inserting the following new
items:

''Sec. 137. Treatment of participation in
State prepaid tuition program.
''Sec. 138. Cross references to other
Acts.''
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after September 30, 1993.
Output:
Tuition Account Assistance Act of 1995 - Amends the Internal Revenue Code to exclude from gross income amounts received by reason of education furnished pursuant to a qualified State prepaid tuition program (under which credits for tuition for the undergraduate education of a designated beneficiary may be purchased) or earnings on amounts paid to such a program.