1Amending the act of April 3, 1992 (P.L.28, No.11), entitled, as
2amended, "An act providing for the establishment of two
3programs for postsecondary educational savings, a guaranteed
4savings program and an investment program; establishing the
5Tuition Account Programs Bureau within the Treasury
6Department and providing duties for the Treasury Department;
7establishing tuition account funds; providing for Tuition
8Account Program Contracts; providing for the establishment of
9scholarship programs; and further providing for duties of the
10Pennsylvania Higher Education Assistance Agency," further
11providing for general provisions governing both tuition
12account programs.

13The General Assembly of the Commonwealth of Pennsylvania
14hereby enacts as follows:

15Section 1. Section 309.2 of the act of April 3, 1992 (P.L.

1628, No.11), known as the Tuition Account Programs and College
17Savings Bond Act, added June 22, 2000 (P.L.418, No.58), is
18amended to read:

19Section 309.2. General provisions governing both tuition
20account programs.

21(a) Levy, execution and security for loans.--A tuition
22account, any state-qualified tuition program plan or any legal

1interest therein shall not be subject to attachment, levy or
2execution by any creditor of [an] any account owner or
3beneficiary and shall not be used as security for a loan.

4(b) Period of participation.--Notwithstanding any of the
5provisions of this chapter, the following shall apply:

6(1) Except as provided in paragraph (2), a minimum
7period of one year must elapse between the time a
8contribution is made pursuant to a Tuition Account Program
9Contract and the time that contribution and any increase in
10its value may be used for payment of qualified higher
11education expenses pursuant to section 309 or 309.1.

12(2) The board may prescribe an alternative minimum
13period of time which must elapse between a contribution and
14its use for payment of qualified higher education expenses.

15(c) Student aid.--Any amounts contributed pursuant to a
16Tuition Account Program Contract, any state-qualified tuition 
17program plan and any increase in the value thereof shall not be
18used in calculating personal asset contributions for determining
19eligibility and need for student loan programs, student grant
20programs or other student aid programs administered by any
21agency of the Commonwealth, except as otherwise may be provided
22by Federal law.

23(d) Excess contributions.--The department shall institute
24adequate safeguards to prevent contributions to an account or
25multiple accounts that are in excess of those necessary to
26provide for the qualified higher education expenses of the
27beneficiary of that account or accounts, as specified in section
28529 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 
29U.S.C. § 529).

30(e) Cash contributions.--A contribution made pursuant to a

1Tuition Account Program Contract may only be made in cash, which
2may at the department's discretion include checks, money orders,
3credit cards or other similar methods.

4(f) Transfers between programs.--The department, pursuant to
5a Tuition Account Program Contract, may specify the terms and
6conditions under which transfers of contributions and any
7increased value thereof may be made from one account to another
8by an account owner who has entered into a Tuition Account
9Guaranteed Savings Program Contract and a Tuition Account
10Investment Program Contract. Nothing in this subsection shall be
11construed to require the department to allow such transfers.

12Section 2. This act shall take effect in 60 days.