Authorizes the Louisiana Tuition Trust Authority to contract with a program manager for the administration of certain savings accounts (ABLE, START, and START K12 programs) and the investment of account funds (EG +$9,000,000 GF EX See Note)

HB 749 authorizes the Louisiana Tuition Trust Authority to enter into a contract with a program manager to assume administration of the ABLE Account Program, the Louisiana Student Tuition Assistance and Revenue Trust Program, and the Louisiana Student Tuition Assistance and Revenue Trust Kindergarten Through Grade Twelve Program, along with investment management of all account funds held within these programs. The legislation amends multiple sections of Louisiana Revised Statutes Title 17 related to these savings account programs and creates a new Chapter 22-C to establish the legal framework governing program manager contracts and operations. The statute creates a transition mechanism whereby the LATTA's current powers and duties regarding interest rate determination, investment management, and guarantee obligations for fixed earnings accounts remain in effect until either December 31, 2026, or the date the authority executes a program manager contract, whichever occurs later. Upon execution of such a contract, all account funds deposited in ABLE, START, and START K12 accounts within the Louisiana Education Tuition and Savings Fund shall transfer to the program manager for administration and investment, except funds in the Savings Enhancement Fund which shall remain under state treasurer management.

The practical effect of this legislation impacts three distinct groups. Account holders in the ABLE, START, and START K12 programs will experience a transition in account administration and investment management from a state-operated system to a private program manager, though the timing and operational details depend on when or whether the authority executes a program manager contract. The Louisiana Tuition Trust Authority's operational burden for these programs decreases substantially upon contract execution, as the program manager assumes responsibility for day-to-day account administration, investment oversight, and interest crediting functions. The state treasurer's role shifts from active investment management of account funds to a limited function maintaining only the Savings Enhancement Fund, though the treasurer retains approval authority over interest rates until the transition occurs and must coordinate with the authority on implementation details including transfer of account information necessary for the migration to the program manager.

This legislation operates within the existing statutory framework established by Louisiana Revised Statutes Title 17, which has provided for the LATTA's governance and administration of these savings programs since their creation. The bill preserves compliance with federal law requirements, particularly Section 529A of the Internal Revenue Code governing Achieving a Better Life Experience programs and applicable federal regulations for education savings accounts. The authority maintains contract execution power under existing statutes authorizing it to make necessary contracts, with this legislation clarifying that such authority explicitly includes program manager administration contracts. The statute preserves the Savings Enhancement Fund's separate treatment, ensuring that legislature-appropriated earnings enhancement monies for START accounts continue under existing statutory provisions rather than transferring to the program manager. The authority is required to provide written notification to the Speaker of the House, President of the Senate, and state Treasurer within twenty-four hours of executing a program manager contract, integrating this significant administrative action into Louisiana's legislative oversight mechanisms.