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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY CORMAN, GORDNER, VOGEL, COSTA, ALLOWAY, BLAKE, BOSCOLA, BREWSTER, BRUBAKER, ERICKSON, FONTANA, GREENLEAF, LEACH, RAFFERTY, SOLOBAY, TARTAGLIONE, TOMLINSON, M. WHITE, WOZNIAK, YAW AND YUDICHAK, JUNE 8, 2011 |
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| REFERRED TO FINANCE, JUNE 8, 2011 |
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| AN ACT |
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1 | Amending the act of April 3, 1992 (P.L.28, No.11), entitled, as |
2 | amended, "An act providing for the establishment of two |
3 | programs for postsecondary educational savings, a guaranteed |
4 | savings program and an investment program; establishing the |
5 | Tuition Account Programs Bureau within the Treasury |
6 | Department and providing duties for the Treasury Department; |
7 | establishing tuition account funds; providing for Tuition |
8 | Account Program Contracts; providing for the establishment of |
9 | scholarship programs; and further providing for duties of the |
10 | Pennsylvania Higher Education Assistance Agency," further |
11 | providing for tuition account programs and funds. |
12 | The General Assembly of the Commonwealth of Pennsylvania |
13 | hereby enacts as follows: |
14 | Section 1. Section 306(f) of the act of April 3, 1992 |
15 | (P.L.28, No.11), known as the Tuition Account Programs and |
16 | College Savings Bond Act, amended June 22, 2000 (P.L.418, |
17 | No.58), is amended and the section is amended by adding a |
18 | subsection to read: |
19 | Section 306. Tuition account programs; funds. |
20 | * * * |
21 | (f) Limitation.--Notwithstanding any other provision of law, |
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1 | the Treasury Department and the board shall not pledge the |
2 | credit or taxing powers of the Commonwealth for the Tuition |
3 | Account Investment Program. Any obligation or debt [under this |
4 | act] of the Tuition Account Investment Program shall not be |
5 | deemed an obligation or debt of the Commonwealth, nor shall the |
6 | Commonwealth be liable to pay principal and interest on |
7 | obligations or to offset any loss of principal and interest |
8 | earnings on investments of the Tuition Account Investment |
9 | Program made by the Treasury Department or recommended by the |
10 | board [pursuant to this act]. Tuition Account Investment Program |
11 | Contracts issued by the Treasury Department with an account |
12 | owner shall contain a plain language statement explaining the |
13 | limitation contained in this subsection. |
14 | (g) Commonwealth obligation.--If the Tuition Account |
15 | Guaranteed Savings Program Fund does not have sufficient funds |
16 | to meet the obligation to make a payment under section 309 or |
17 | the obligation to make a refund under section 313, the |
18 | Commonwealth shall meet that obligation. |
19 | Section 2. This act shall take effect July 1, 2011, or |
20 | immediately, whichever is later. |
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