SB132 Alabama 2021 Session

Updated Feb 26, 2026

Low Interest

Summary

Primary Sponsor: Sam GivhanSenator
Republican
Session: Regular Session 2021
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: SB132 renames the ACES program to the Alabama Comprehensive Education Savings Program and clarifies its terms to align with federal law, while preserving the program’s structure and funding framework.
What This Bill Does
Renames the ACES Program and updates its definitions to reflect the new program name and to align terms with federal law (including 529 provisions). Creates and defines the funds that support the program—the ACES Trust Fund, the ACES Administrative Fund, and the ACES Opportunity Enhancement Fund—and explains how contributions and administration are handled. Preserves the overall plan structure that combines PACT, ACES, and ABLE programs, and allows the ACES program to be marketed under a name other than ACES. Clarifies who can contribute, who benefits (designated beneficiaries), and how funds are managed, invested, and used for administrative costs and program enhancement, with an effective date three months after passage and governor approval.

Who It Affects
Contributors to ACES/ABLE savings accounts: their contributions will continue to go into dedicated funds under the program, with administration and investment rules defined by the act.
Designated beneficiaries (eligible individuals, including students and individuals with disabilities): they remain the beneficiaries of the savings accounts used for qualified expenses, in line with 529 provisions.
State government and program administrators (State Treasurer, Savings Board, Legislature): they gain new or clarified authority to manage, invest, and oversee the ACES program funds and administration.

Key Provisions
Rename and definitional updates: ACES Program is renamed to the Alabama Comprehensive Education Savings Program, with terms aligned to federal 529 rules and related definitions clarified.
Fund structure and purposes: establishment of the ACES Trust Fund, ACES Administrative Fund, and ACES Opportunity Enhancement Fund, including rules on contributions, administration, investment, and year-end carryover.
Administrative and tax treatment: funds in the ACES-related funds are used for program administration, may be invested by the State Treasurer, and are exempt from state taxation.
Marketing and effective date: the ACES Program may be marketed under a name other than ACES, and the act becomes effective three months after passage and governor 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