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.