An Act concerning the New Jersey Better Educational Savings Trust (NJBEST) Program and amending N.J.S.18A:71B-42.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.18A:71B-42 is amended to read as follows:
NJBEST scholarship; conditions.
18A:71B-42. a. An amount of no less than $500 shall be provided by the State for the qualified higher education expenses of a designated beneficiary at the time of a qualified withdrawal provided that:
(1) the contributor demonstrates, to the satisfaction of the authority, that the contributor participated in the program for at least four years by making a qualifying minimum initial deposit or qualifying minimum annual contributions, or both, as shall be determined by the authority, for a designated beneficiary;
(2) the designated beneficiary demonstrates, to the satisfaction of the authority, attendance or enrollment in a higher education institution in this State; and
(3) either the contributor, if an individual, or the designated beneficiary demonstrates, to the satisfaction of the authority, that the contributor or designated beneficiary is a New Jersey resident.
b. The amount provided under subsection a. of this section shall meet the requirements of a qualified scholarship within the meaning of section 117 of the federal Internal Revenue Code of 1986, 26 U.S.C.s.117, for a designated beneficiary satisfying the requirements of subsection a. of this section.
c. A designated beneficiary shall not receive more than one State scholarship provided pursuant to subsection a. of this section.
2. This act shall take effect immediately.
Approved September 14, 2020.