1Amend Bill, page 1, line 12, by inserting after "programs"

2 and for State tax exemption

3Amend Bill, page 1, lines 15 through 18, by striking out all
4of said lines and inserting

5Section 1. Sections 309.2 and 316 of the act of April 3, 
61992 (P.L.28, No.11), known as the Tuition Account Programs and
7College Savings Bond Act, amended or added June 22, 2000 
8(P.L.418, No.58), are amended to read:

9Amend Bill, page 3, by inserting between lines 11 and 12

10Section 316. State tax exemption.

11(a) Property of funds.--The property of each of the funds
12and their income and operation shall be exempt from all taxation
13by the Commonwealth and its political subdivisions.

14(b) Contributions.--Contributions made pursuant to a Tuition
15Account Program Contract or a "qualified State tuition program" 
16as defined by section 529 of the Internal Revenue Code of 1986 
17(Public Law 99-514, 26 U.S.C. § 529); any increase in the value
18of those contributions, the retention, or transfer during life
19or as a result of death of any legal interest in a Tuition
20Account Program Contract or a "qualified State tuition program" 
21as defined by section 529 of the Internal Revenue Code of 1986 
22(Public Law 99-514, 26 U.S.C. § 529); and payment of qualified
23higher education expenses of beneficiaries made pursuant to
24Tuition Account Program Contracts or a "qualified State tuition 
25program" as defined by section 529 of the Internal Revenue Code 
26of 1986 (Public Law 99-514, 26 U.S.C. § 529) shall be exempt
27from all taxation by the Commonwealth and its political
28subdivisions.

29Section 2. The amendment of section 316 of the act shall
30apply to the transfer of property by a decedent on or after the
31effective date of this section.

32Amend Bill, page 3, line 12, by striking out "2" and 
33inserting

1 3