1.This Act may be cited as the
Deposit Restricted Qualified Tuition
Programs Act of 2010
.
2.Deposit restricted qualified tuition
programsSection 18 of the
Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by
adding at the end the following new subsection:
(y)Deposit restricted qualified tuition
programs
(1)For purposes of this subsection, the
following definitions shall apply:
(A)Deposit restricted qualified tuition
programThe term
deposit restricted qualified tuition program
means a qualified
tuition program in which—
(i)the cash provided by a contributor to such
a qualified tuition program may be invested only in deposits insured by the
Corporation;
(ii)the contributor may become a participant in
the program by depositing funds through the program into an account at a
depository institution participating in the program; and
(iii)the program may include multiple depository
institutions, subject to the requirements of
section
529 of the Internal Revenue Code of 1986, as amended.
(B)Qualified tuition programThe term qualified tuition
program
has the same meaning as in
section
529 of the Internal Revenue Code of 1986, as amended.
(2)Notwithstanding any other provision of the
law, the following provisions shall apply with respect to any deposit
restricted qualified tuition program:
(A)A deposit restricted qualified tuition
program shall be deemed to be an identified banking product
(as
defined in Section 206 of the Gramm-Leach-Bliley Act of 1999) for purposes of
the Securities Exchange Act of 1934.
(B)None of the following shall be treated as a
security, as defined in section 2(a)(1) the Securities Act of 1933, section
3(a)(10) of the Securities Exchange Act of 1934, or section 2(a)(36) of the
Investment Company Act of 1940:
(i)The deposits of cash at an insured
depository institution relating to a deposit restricted tuition program.
(ii)Any certificate of deposit or other
instrument of an insured depository institution evidencing any such
deposit.
(iii)The rights and obligations of participants
in a deposit restricted qualified tuition program arising from section 529 of
the Internal Revenue Code, as amended.
(C)In no event shall a deposit restricted
qualified tuition program, the State entity designated by statute to oversee
such program, the administrator appointed to operate the program on behalf of
the State or a participating depository institution, be deemed to be an issuer
of a security or to be an investment company (as defined in section 3(a) of the
Investment Company Act of
1940).
.
3.The budgetary effects of this Act, for the
purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be
determined by reference to the latest statement titled Budgetary Effects
of PAYGO Legislation
for this Act, submitted for printing in the
Congressional Record by the Chairman of the Committee on the Budget of the
House of Representatives, provided that such statement has been submitted prior
to the vote on passage.
Passed the House of
Representatives April 20, 2010.
Lorraine C. Miller,
Clerk.