Section 6901.306 - Tuition account programs; funds(a) Establishment.--There are established in the State Treasury two special funds to be known as the Tuition Account Guaranteed Savings Program Fund and the Tuition Account Investment Program Fund. The money in these funds shall be invested in accordance with this chapter. All money in each of the funds is hereby appropriated to the department on a continuing basis to carry out the provisions of this chapter.(b) Administration.--(1) The assets of each of the funds shall be preserved, invested and expended solely pursuant to and for the purposes set forth in this chapter.(2) The department shall obtain appropriate actuarial assistance to establish, maintain and certify that the Tuition Account Guaranteed Savings Program Fund is sufficient to defray its obligations and shall annually evaluate, or cause to be evaluated, its actuarial soundness. If the department finds a need for additional assets in order to preserve actuarial soundness, it may adjust the tuition credit prices to ensure such soundness. If the department finds that actuarial soundness can be maintained with fewer assets, it may adjust the tuition credit prices or distribute surplus assets in excess of those needed to maintain the actuarial soundness of the Tuition Account Guaranteed Savings Program Fund as specified in paragraph (2.1).(2.1)(i) Annually, after the department's fiscal year has ended, the department shall determine whether the Tuition Account Guaranteed Savings Program Fund has been actuarially certified as being sufficient to defray its obligations and whether the actuarial soundness of the Tuition Account Guaranteed Savings Program Fund, as actuarially evaluated, can be maintained with fewer assets and, if so, the dollar value of any excess surplus assets. In making the determination, the department shall consider the projected costs and expenses of the Tuition Account Guaranteed Savings Program, including the Tuition Account Guaranteed Savings Program Fund, as well as any material subsequent events occurring between the end of the fiscal year and the date on which the determination is made.(ii) If the department determines that there are assets in excess of those needed to maintain actuarial soundness of the Tuition Account Guaranteed Savings Program Fund and the assets actuarially certified as sufficient to defray the costs of the Tuition Account Guaranteed Savings Program, the department may, but shall not be obligated to, distribute the dollar value of any excess surplus assets by making additional contributions, which will be converted to the equivalent of tuition credits pursuant to section 309(c) , into accounts established pursuant to Tuition Account Guaranteed Savings Program Contracts that have not been terminated as of the date of determination.(iii) Any distribution of any excess surplus assets of the fund shall be made on an equitable basis as determined by the department.(3) The department, in conjunction with the board, shall make an annual report to the Governor and the General Assembly showing the condition of each of the funds. This report shall contain the findings and recommendations of the department and the board and the recommendations of any private consultant under contract or volunteering services to the department or board. The report shall detail actions taken or needed to modify the Tuition Account Guaranteed Savings Program to insure the fiscal sufficiency of the Tuition Account Guaranteed Savings Program Fund to meet its obligations under this chapter. With regard to the Tuition Account Guaranteed Savings Program Fund, the report shall address the relationship between existing and projected net investment returns and existing and projected tuition levels and address the advisability or necessity of modifying the authorized investment of fund assets, the tuition credit price, the amount of administrative fee or charges or the amount of refunds offered upon termination of a Tuition Account Guaranteed Savings Program Contract. Further, consistent with the goal of providing for the maintenance of the fiscal sufficiency of the fund, the report regarding each of the funds shall detail those actions taken or needed to modify the programs so that the funds, account owners and beneficiaries will receive favorable treatment for purposes of Federal taxation.(c) Composition.-- Each of the funds shall consist of:(1) All contributions made by account owners pursuant to Tuition Account Program Contracts and all interest, earnings and additions thereto.(2) Any other money, public or private, appropriated or made available to the department for the fund from any source and all interest, earnings and additions thereto.(d) Operating and administrative costs.--The department shall, through the Governor, annually submit to the General Assembly a budget covering the operating and administrative expenses of the Tuition Account Programs Bureau and the board. Upon approval by the General Assembly in an appropriation bill, expenses as incurred by the Tuition Account Programs Bureau and the board shall be paid from the fees, charges and investment earnings of the funds, proportionately taken from each fund on an equitable basis as determined by the department, or from any other available funds.(e) Repayment of initial appropriation.--The department shall repay from the fees, charges and investment earnings of the Tuition Account Guaranteed Savings Program Fund to the General Fund any money appropriated for the initial planning, organization and administration of the tuition account program established at the time of the original enactment of this act. The repayment shall take place within a ten-year period commencing September 1, 1995.(f) Limitation.--Notwithstanding any other provision of law, the Treasury Department and the board shall not pledge the credit or taxing powers of the Commonwealth. Any obligation or debt under this act shall not be deemed an obligation or debt of the Commonwealth, nor shall the Commonwealth be liable to pay principal and interest on obligations or to offset any loss of principal and interest earnings on investments made by the Treasury Department or recommended by the board pursuant to this act. Tuition Account Program Contracts issued by the Treasury Department with an account owner shall contain a plain language statement explaining the limitation contained in this subsection.1992, April 3, P.L. 28, No. 11, § 306, imd. effective. Amended 2000, June 22, P.L. 418, No. 58, § 3, effective in 60 days.