TITLE XV
EDUCATION

Chapter 195-H
COLLEGE TUITION SAVINGS PLAN

Section 195-H:1

    195-H:1 Definitions. –
In this chapter:
I. "Commission" means the New Hampshire college tuition savings plan advisory commission.
II. "Eligible educational institution" means that which is defined in 26 U.S.C. section 529(e)(5).
III. [Repealed.]
IV. "Savings plan" means any plan administered as the New Hampshire college tuition savings plan.

Source. 1997, 304:2. 1998, 150:1. 2007, 196:1, 7, I, eff. Aug. 17, 2007.

Section 195-H:2

    195-H:2 Advisory Commission Established; Reports. –
I. (a) There is established the New Hampshire college tuition savings plan advisory commission which shall ensure the proper administration and management of the savings plan. The advisory commission shall ensure that the savings plan complies with the requirements of section 529 of the Internal Revenue Code of 1986, as amended, and any related federal law applicable to the savings plan. The commission shall also be responsible for ensuring the proper administration, implementation, and management of the New Hampshire excellence in higher education endowment trust fund established in RSA 6:38, and the governor's scholarship program and fund established in RSA 195-H:11-14. The commission, by a majority vote, may transfer funds between the New Hampshire excellence in higher education endowment trust fund and the governor's scholarship fund. The commission shall consist of the following members:
(1) The state treasurer.
(2) Two members of the house of representatives, one of whom shall be a member of the house finance committee, appointed by the speaker of the house.
(3) Two members of the senate, appointed by the senate president.
(4) The governor, or designee.
(5) Two public members, one of whom shall have business experience, appointed by the governor.
(6) One member representing the college and university system of New Hampshire, appointed by the chancellor.
(7) One member of the higher education commission established in RSA 21-N:8-a, II, appointed by majority vote of the members of the commission.
(8) One member representing the community college system of New Hampshire, appointed by the chancellor of the community college system of New Hampshire.
(9) One member representing the New Hampshire college and university council, appointed by the members of the council.
(10) One member representing the New Hampshire Higher Education Assistance Foundation, appointed by the foundation.
(b) Except for the members appointed under subparagraphs (a)(1)-(4), members shall be appointed for 2-year terms.
II. Members of the commission shall serve without compensation, except that legislative members shall receive mileage at the legislative rate.
III. The commission shall keep written records of all its proceedings.
IV. No member of the commission shall have any personal interest in the gains or profits of any investment made by the commission; nor shall any member of the commission, directly or indirectly, for such member or as an agent, in any manner use the same except to make such current and necessary payments as are authorized by the commission; nor shall any member of the commission become an endorser or surety, or in any manner an obligor, for money loaned to or borrowed from the commission.
V. Members of the commission shall be held harmless from either criminal or civil liability for any decisions made or services rendered under the provisions of this chapter.
VI. (a) The state treasurer shall make quarterly reports regarding the status of the savings plan to the commission.
(b)(1) At least annually, the commission shall issue to each participant, a statement which shall include the participant's beginning balance, contributions, and earnings credited to their account during the previous fiscal year.
(2) At least annually, the commission shall make annual reports regarding the status of the savings program to each participant in the savings plan and to the state library.

Source. 1997, 304:2. 1999, 328:2. 2007, 196:2, eff. Aug. 17, 2007; 361:27, eff. July 17, 2007. 2011, 224:133, eff. July 1, 2011. 2019, 346:439, eff. July 1, 2019. 2021, 91:162, eff. July 1, 2021.

Section 195-H:3

    195-H:3 Rulemaking. –
The commission shall adopt rules relative to:
I. The administration, management, promotion, and marketing of the savings plan.
II. Maintaining the tuition savings program in compliance with Internal Revenue Service standards for qualified state tuition programs.
III to VII. [Repealed.]
VIII. The administration, implementation, and promotion of the New Hampshire excellence in higher education endowment trust fund established in RSA 6:38.

Source. 1997, 304:2. 1998, 150:2. 1999, 328:3. 2007, 196:7, II, eff. Aug. 17, 2007.

Section 195-H:4

    195-H:4 College Tuition Savings Plan. –
I. (a) The treasurer shall, as needed, issue requests for proposals to evaluate and determine the vehicle for investments of the savings plan and its administration.
(b) The commission shall consider and, if appropriate, give preference to proposals best meeting the following criteria:
(1) Ability to administer financial programs with individual account maintenance and reporting.
(2) Ability to develop and administer an investment program of a nature similar to the objectives of the college tuition savings plan.
(3) Ability to augment the college tuition savings plan with other programs or informational services considered beneficial by the commission.
(c) The final selection of the vehicle for investments and its administration shall be made by the commission.
II. The commission shall determine and make recommendations regarding the use of personnel in the treasurer's office with costs for such administrative support to be funded from the savings plan.
III. The savings plan shall be on a "cash only" basis, and shall include provisions for automatic deductions.
IV. The savings plan shall be established in such form as shall be determined by the commission and may be established as a trust to be declared by the state treasurer. The savings plan or such trust may be divided into multiple investment portfolios. If so divided, and if distinct records are maintained for any such portfolio and the assets associated with any such portfolio are accounted for separately from the other assets of the trust, then the debts, liabilities, obligations, and expenses incurred, contracted for, or otherwise existing with respect to a particular portfolio shall be enforceable against the assets of such portfolio only, and not against the assets of the trust generally.
V. [Repealed.]

Source. 1997, 304:2. 1998, 150:3. 2007, 196:3, 4, eff. Aug. 17, 2007. 2011, 224:123, eff. July 1, 2011. 2013, 144:92, eff. July 1, 2013.

Section 195-H:5

    195-H:5 Residency. – Persons shall be eligible to participate in and benefit from the savings plan, regardless of state of residency.

Source. 1997, 304:2. 2007, 196:5, eff. Aug. 17, 2007.

Section 195-H:6 to 195-H:8

    195-H:6 to 195-H:8 Repealed by 2007, 196:7, III, eff. Aug. 17, 2007. –

Section 195-H:9

    195-H:9 Liability Exemption. – Neither the state nor any eligible educational institution shall be liable for any shortage of funds in the event that the accruals from the savings plan are insufficient to meet the tuition requirements of such institution chosen by the student for which the plan was intended.

Source. 1997, 304:2. 2007, 196:6, eff. Aug. 17, 2007.

Section 195-H:10


[RSA 195-H:10 repealed by 2021, 91:99, V, effective January 1, 2027.]
    195-H:10 Funds Exempt From Interest and Dividends Tax. – Income and distributions from any qualified tuition program as defined in the Internal Revenue Code of 1986, as amended, shall be exempt from the New Hampshire interest and dividends tax pursuant to RSA 77:4-e, provided that distributions from the plan which are subject to federal income tax shall be subject to the interest and dividends tax pursuant to RSA 77 on the accrued income portion of the savings plan distribution.

Source. 1997, 304:2. 2003, 64:2. 2007, 196:6, eff. Aug. 17, 2007.

Governor's Scholarship Program and Fund

Section 195-H:11

    195-H:11 Definitions. –
In this subdivision:
I. "Eligible institution" means a postsecondary educational institution or training program within the university system of New Hampshire as defined in RSA 187-A, a postsecondary educational institution within the community college system of New Hampshire as defined in RSA 188-F, or a private postsecondary institution approved to operate in this state that:
(a) Is approved by the higher education commission pursuant to RSA 21-N:8-a and accredited by the New England Commission of Higher Education; and
(b) Is a not-for-profit organization eligible to receive federal Title IV funds.
II. "Eligible student" means a first-year, full-time, Pell Grant-eligible student who meets the eligibility and residency requirements of RSA 195-H:13. "First-year" means a student who has never enrolled in an eligible institution.
III. "Full-time" means an enrolled student who is carrying an academic course load that is determined to be full-time by the eligible institution based on a standard applicable to all students enrolled in a particular educational program. The student's course load may include any combination of courses, work, research, or special studies that the eligible institution considers sufficient to classify the student as full-time.

Source. 2021, 91:163, eff. July 1, 2021.

Section 195-H:12

    195-H:12 Governor's Scholarship Program and Fund Established. –
I. There is hereby established the governor's scholarship program and the governor's scholarship fund. The program and fund shall be administered by the commission. The fund shall be kept distinct and separate from all other funds and shall be used to provide scholarships which a recipient shall apply to the costs of an education at an eligible institution. The funds shall be distributed to an eligible institution based on the number of eligible students awarded a scholarship and upon receipt of a request for reimbursement for such scholarship funds accompanied by appropriate documentation.
II. The state treasurer shall credit to the fund any appropriation relating to the governor's scholarship fund made in each fiscal year to the commission. The state treasurer shall invest the fund in accordance with RSA 6:8. Any earnings shall be added to the fund.
III. All moneys in the fund shall be nonlapsing and continually appropriated to the commission for the purposes of this subdivision.
IV. The commission may institute promotional programs and solicit and receive cash gifts or other donations for the purpose of supporting educational scholarships from the fund. The commission shall not solicit or accept real property.
V. All gifts, grants, and donations of any kind shall be credited to the fund.

Source. 2021, 91:163, eff. July 1, 2021.

Section 195-H:13

    195-H:13 Eligibility. –
I. Any person who meets the following requirements shall be an eligible student:
(a) A person shall meet the residency requirements of RSA 193:12; be a graduate of a New Hampshire high school, public academy, chartered public school, New Hampshire private preparatory high school, or a high school-level home education program as defined in RSA 193-A; have received a New Hampshire high school equivalency certificate; have completed at least 3 years of high school in this state; be pursuing a certificate, associate, or bachelor degree at an eligible institution in this state; and be eligible to receive a Pell grant; or
(b) A person shall be a graduate of a preparatory high school outside of this state while a dependent of a parent or legal guardian who is a legal resident of this state and who has custody of the dependent; or
(c) A person shall have a parent or guardian who has served in or has retired from the United States Army, Navy, Air Force, Marine Corps, or Coast Guard within the last 4 years and is a resident of this state; or
(d) A person shall be a graduate of a high school, public academy, chartered public high school, or a high school-level home education program outside of this state but have maintained his or her primary residence in this state for not less than 5 years preceding the date of application for a scholarship.
II. A person shall meet the qualifications for academic performance or work experience as established by the commission.
III. A person shall not have been adjudicated delinquent or convicted or pled guilty or nolo contendere to any felonies or any second or subsequent alcohol or drug-related offenses under the laws of this or any other state, or under the laws of the United States, except that an otherwise eligible person who has been adjudicated delinquent or has been convicted or pled guilty or nolo contendere to a second or subsequent alcohol or drug-related misdemeanor offense shall be eligible or continue to be eligible for a scholarship after the expiration of one academic year from the date of adjudication, conviction, or plea.

Source. 2021, 91:163, eff. July 1, 2021.

Section 195-H:14

    195-H:14 Procedures. –
I. All scholarship funds shall be distributed to the eligible student by the eligible institution. The institution shall include the scholarship in the student's financial aid package and may seek subsequent reimbursement. The state shall provide the reimbursements twice per year to each eligible institution for the number of eligible students enrolled in the current semester or term who are receiving a scholarship. The institution shall submit the list of scholarship recipients to the commission or its designee no later than November 30 and April 30 of each academic year, and shall be reimbursed within 30 days of submission.
II. An eligible student may receive a scholarship in the amount of $1,000 per year provided he or she maintains at least a 2.0 grade point average. An eligible student who earned the New Hampshire scholar designation at the time of high school graduation may receive a scholarship in the amount of $2,000 per year provided he or she maintains at least a 2.5 grade point average. The eligible institution shall not reduce any merit or need-based grant aid that would have otherwise been provided to the eligible student. An eligible student may receive an annual scholarship for a maximum of 4 years.
III. In the event the state does not reimburse the eligible institution for scholarship amounts paid to an eligible student receiving an award, the eligible institution shall agree not to seek additional payments from the eligible student and to absorb the loss of funds without any consequence to the eligible student.
IV. The commission shall adopt rules, pursuant to RSA 541-A, relative to awarding and disbursing scholarship funds to an eligible student enrolled in an eligible institution.
V. An eligible student, who initially attends a community college and transfers directly to an eligible institution, without a break in attendance, shall remain an eligible student for a maximum of 4 years of total eligibility.
VI. The commission may hire staff or enter into a contract for services or personnel necessary to administer the program.

Source. 2021, 91:163, eff. July 1, 2021.