HB149 Alabama 2020 Session

Updated Feb 26, 2026

Low Interest

Summary

Primary Sponsor: Andy WhittRepresentative
Republican
Session: Regular Session 2020
Title: Wallace-Folsom Savings Investment Plan Act, ACES Program, name of and name of Admin Fund and savings accounts changed to AL Comprehensive Education Savings Program, definitions clarified, Secs. 16-33C-3, 16-33C-10 am'd.
Summary: HB 149 renames the ACES program and its related funds to reflect the Alabama Comprehensive Education Savings Program and aligns definitions with federal law.
What This Bill Does
It amends Sections 16-33C-3 and 16-33C-10 to rename the ACES Program, ACES Administrative Fund, and ACES savings accounts to the Alabama Comprehensive Education Savings Program and related funds, and to ensure definitions follow federal law (including 529 provisions). It maintains the overall Wallace-Folsom Savings Investment Plan structure (PACT, ACES, and ABLE) and allows the ACES Program to be marketed under a different name. It creates and organizes the ACES Trust Fund, ACES Administrative Fund, and ACES Opportunity Enhancement Fund, with administration funded from the ACES Administrative Fund, investment of funds, and year-end carryforward rules; these funds are tax-exempt at the state level. The act also clarifies terms like ABLE, PACT, and SAVINGS accounts as defined by federal law and specifies the act’s effective date after passage.

Who It Affects
Contributors and designated beneficiaries of ACES (Alabama Comprehensive Education Savings Program) and ABLE savings accounts—the naming changes and clarified definitions affect how their accounts are described and governed.
State Treasurer's Office and Savings Board—the renaming, fund creation, administration rules, and investment/management provisions affect administration and budgeting for the ACES Program.

Key Provisions
Renames the ACES Program and its related funds from 'Alabama College Education Savings' to 'Alabama Comprehensive Education Savings Program' (and associated Administrative Fund and savings accounts).
Defines terms in the chapter to align with federal law, including Section 529 of the Internal Revenue Code and other applicable federal law.
Maintains the Wallace-Folsom Savings Investment Plan structure, consisting of the PACT Program, the ACES Program, and the ABLE Program, with ACES Program potentially marketed under a different name.
Creates and details the ACES Trust Fund, ACES Administrative Fund, and ACES Opportunity Enhancement Fund, including administration, investment, and use rules.
Specifies that funds in the ACES Administrative Fund are used for administering the ACES Program, may be invested, and that earnings stay in the fund; end-of-year funds carry forward for administration.
Provides tax exemption for property and income of the ACES Trust Fund, ACES Administrative Fund, and ACES Opportunity Enhancement Fund at the state level.
Effective date: the act becomes effective on the first day of the third month following its passage and approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Alabama College Edcuation Savings Program