House committee substitute to the 2nd edition changes the effective date of the act from when it becomes law to September 1, 2023, applicable to actions filed on after that date.
PROTECT NC ED. SAVINGS & INVESTMENT ACCOUNTS.
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View NCGA Bill Details | 2023-2024 Session |
AN ACT TO INCREASE PROTECTIONS FOR FUNDS HELD IN NORTH CAROLINA EDUCATION SAVINGS AND INVESTMENT ACCOUNTS FROM CLAIMS OF CREDITORS AND OTHER JUDGMENTS.Intro. by Elmore, D. Hall, Winslow.
Bill History:
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Wed, 15 Feb 2023 House: Filed
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Thu, 16 Feb 2023 House: Passed 1st Reading
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Wed, 22 Feb 2023 House: Reptd Fav Com Substitute
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Wed, 22 Feb 2023 House: Re-ref Com On Rules, Calendar, and Operations of the House
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Tue, 28 Feb 2023 House: Reptd Fav Com Sub 2
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Tue, 28 Feb 2023 House: Cal Pursuant Rule 36(b)
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Tue, 28 Feb 2023 House: Placed On Cal For 03/01/2023
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Wed, 1 Mar 2023 House: Passed 2nd Reading
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Wed, 1 Mar 2023 House: Passed 3rd Reading
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Thu, 2 Mar 2023 House: Regular Message Sent To Senate
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Mon, 6 Mar 2023 Senate: Regular Message Received From House
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Mon, 6 Mar 2023 Senate: Passed 1st Reading
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Mon, 6 Mar 2023 Senate: Ref To Com On Rules and Operations of the Senate
Bill Summaries:
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Bill H 131 (2023-2024)Summary date: Feb 28 2023 - View Summary
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Summary date: Feb 22 2023 - View Summary
House committee substitute to the first edition makes the following changes.
Adds new section enacting GS 147-86.47 to Article 6F of GS Chapter 147 exempting funds located in an ABLE account (savings accounts for people with disabilities where the disability occurred before the age of 26) or withdrawn from the account and used for expenses permitted under section 529A of the Internal Revenue Code (governing qualified tuition payments) from liens, garnishment, attachment, and judgment and other debt collection devices. Specifies that funds may still be distributed upon the death of the account holder as provided by law.
Makes organizational changes.
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Bill H 131 (2023-2024)Summary date: Feb 15 2023 - View Summary
Amends GS 116-209.25 (establishing parental trust funds for higher education) to enact new subsection GS 116-209.25(c2) setting forth protections for North Carolina education savings and investment accounts as follows. Exempts funds located in an education savings and investment account of the Parental Savings Trust Fund or withdrawn from the account and used for expenses permitted under section 529 of the Internal Revenue Code (IRS Code) (governing qualified tuition programs) from liens, attachment, garnishment, levy, seizure, any involuntary sale or assignment by operation or execution of law, or the enforcement of any other judgment or claim to pay any debt or liability of any account owner, beneficiary, or contributor to a plan. States that the new subsection (c2) will not affect any protection from creditors under GS 1C-1601(a)(10) (setting forth exemptions of certain property from the claims of creditors) for education savings and investment accounts that are not part of the Parental Savings Trust Fund.
Makes conforming changes to GS 1C-1601(10) (governing the educational savings plan creditor exemption) to refer to the new subsection and to change references to college savings plan to education savings and investment account. Changes the permitted use of exempted funds from the college or university expenses for a child of the debtor to expenses for a child of the debtor permitted under the IRS Code.