September 27, 2001


TO:���������������� Board of Regents of Higher Education


FROM:���������� Rod Sundsted

����������������������� Associate Commissioner for Fiscal Affairs


SUBJECT:���� Item 112-108-R0901, Revisions to Policy #950.2 � Montana Family Education Savings Program



Item 112-108-R0901 revises Board of Regents Policy # 950.2 which governs the operation of the Montana Family Education Savings Program.� The changes are generally the result of changes in state law during the last legislative session (SB258 � Bohlinger) along with changes to section 529 of the Internal Revenue Code resulting from passage of the federal Economic Growth and Tax Relief Reconciliation Act of 2001.� Along with the item itself I have included a brief explanation of the changes incorporated in the item.


The Family Education Saving Program Oversight Committee reviewed the proposed changes at their meeting on July 18, 2001.� The Oversight Committee unanimously recommended adoption of the proposed changes by the Board of Regents.� I have asked that this item be included on the action rather than the submission agenda to expedite implementation.� Some of the statutory changes (state) are already effective and it is important the board rules be revised to be consistent with state statute.�