Title 13 — EDUCATION
92 chapters · 1,687 sections in this title.
SDCL § 13-63-1 Definitions
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Terms used in this chapter mean: (1) "Account," an account established as prescribed in this chapter; (2) "Account owner," the person who, under this chapter or rules promulgated by the council pursuant to chapter 1-26 , is entitled to select or change the designated beneficiary …
SDCL § 13-63-10 Contributions to accounts
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Any person may make contributions to an account after the account is opened. Contributions to accounts may be made only in cash. Source: SL 2001, ch 97 , § 10.
SDCL § 13-63-11 Withdrawals from account
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Account owners may withdraw all or part of the balance from an account as may be authorized by the council, by policies, guidelines, or procedures, or under rules promulgated by the council pursuant to chapter 1-26 . Source: SL 2001, ch 97 , § 11; SL 2002, ch 94 , § 1.
SDCL § 13-63-12 Changing designated beneficiary
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An account owner may change the designated beneficiary of an account to an individual who is a member of the family of the former designated beneficiary or to any other individual in accordance with this section or with procedures established by the council by rules promulgated p…
SDCL § 13-63-13 Transferring funds to another account--Conditions
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On the direction of an account owner, all or a portion of an account may be transferred to another account of which the designated beneficiary is a member of the family of the designated beneficiary of the transferee account, if the transferee account was created by this chapter …
SDCL § 13-63-14 Limitations on changing designated beneficiary and rolling over funds
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Changes in designated beneficiaries and rollovers are not permitted if the changes or rollovers would violate either of the following: (1) Section 13-63-21 relating to excess contributions; or (2) Section 13-63-18 relating to investment choice. Source: SL 2001, ch 97 , § 14. 13-6…
SDCL § 13-63-17 Accounts to be maintained separately
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Each account shall be maintained separately from each other account under the program. Separate records and accounting shall be maintained for each account for each designated beneficiary. Source: SL 2001, ch 97 , § 17.
SDCL § 13-63-18 No direction of investments--Limited options permitted--Financial institution obligation
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A contributor to, account owner of, or designated beneficiary of, any account may not, directly or indirectly direct the investment of any contributions to an account or the earnings from the account, except to the extent permitted under section 529 of the Internal Revenue Code. …
SDCL § 13-63-19 Council to select financial institution in event of transfer of accounts--Exception
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If the council terminates the authority of a financial institution to hold accounts and accounts must be moved from that financial institution to another financial institution, the council shall select the financial institution and type of investment to which the balance of the a…
SDCL § 13-63-2 Powers of South Dakota Investment Council
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The council shall: (1) Establish the program in the form of a trust to be declared by the council or in such other form as the council may determine; (2) Develop and implement the program in a manner consistent with this chapter through the adoption of rules, guidelines, and proc…
SDCL § 13-63-20 Interest in account not subject to levy, judgment or garnishment--Not deemed asset--Interest not to be used as security--Inclusion as gross asset
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Notwithstanding any other provision of law, any amount in or credited to any account is exempt from and is not susceptible to any levy, execution or judgment, or other operation of law, garnishment, or other judicial enforcement. Amounts in an account are not an asset or property…
SDCL § 13-63-21 Council to adopt rules to prevent excess contributions
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The council shall adopt policies, guidelines, procedures, or rules pursuant to chapter 1-26 to prevent contributions on behalf of a designated beneficiary in excess of the maximum amounts permitted under section 529 of the Internal Revenue Code and related regulations. Source: SL…
SDCL § 13-63-21.1 Excess contributions--Processing
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For each designated beneficiary, the balance in the qualified tuition program may not exceed the limits as defined in section 529 of the Internal Revenue Code. If the financial institution determines that a contribution would cause the account balance limit to be exceeded, the fi…
SDCL § 13-63-22 Account distributions to be reported as required by federal law
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If there is any distribution from an account to any person or for the benefit of any person during a calendar year, the distribution shall be reported to the Internal Revenue Service and the account owner or the designated beneficiary to the extent required by federal law. Source…
SDCL § 13-63-23 Account statements--Contents
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The financial institution shall provide statements to each account owner annually within thirty - one days after the twelve - month period to which they relate. The statement must include a minimum of the beginning balance; all contributions made during the preceding twelve - mon…
SDCL § 13-63-24 Statements to comply with federal or state tax laws
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Statements and information returns relating to accounts shall be prepared and filed to the extent required by federal or state tax law. Source: SL 2001, ch 97 , § 24.
SDCL § 13-63-25 Government and non - profit organizations as account owners--Beneficiaries identified after account opened
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A state or local government or organizations described in section 501(c)(3) of the Internal Revenue Code and related regulations may open and become the account owner of an account to fund scholarships for persons whose identity will be determined after an account is opened. In t…
SDCL § 13-63-26 Identifying information of account holders and beneficiaries confidential
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Any social security numbers, taxpayer identification numbers, addresses, or telephone numbers of account holders and designated beneficiaries that come into the possession of the council are confidential, are not public records, and may not be released by the council except as re…
SDCL § 13-63-27 Account balance of beneficiary student treated as asset of parent--Exceptions
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Any student loan program, student grant program, or other financial assistance program established or administered by this state or by a state supported educational institution shall treat the balance in an account of which the student is a designated beneficiary as if it were an…
SDCL § 13-63-28 Limitations of chapter
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Nothing in this chapter: (1) Gives any designated beneficiary any rights or legal interest with respect to an account unless the designated beneficiary is the account owner; (2) Guarantees that a designated beneficiary will be admitted to an eligible education institution or be a…
SDCL § 13-63-29 Chapter does not establish guarantees
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Nothing in this chapter establishes any obligation of this state or any agency or instrumentality of this state to guarantee for the benefit of any account owner, contributor to an account, or designated beneficiary any of the following: (1) The return of any amounts contributed …
SDCL § 13-63-3 Depositories and managers--Bidding by financial institutions--Selection criteria
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The council may implement the program through the use of one or more financial institutions to act as the depositories and managers. Under the program, persons may establish accounts through the program at a depository. The council may solicit proposals from financial institution…
SDCL § 13-63-30 Mandated disclaimers
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Every contract, application, deposit slip, or any other document that may be used in connection with a contribution to an account shall clearly indicate, in a typeface and a location that are readily visible, that the account is not insured by this state and neither the principal…
SDCL § 13-63-31 Annual report by council
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The council shall submit an annual report to the speaker of the House of Representatives, the president pro tem of the Senate, and the Governor by February first that summarizes the council's findings and recommendations concerning the program established by this chapter. Source:…
SDCL § 13-63-32 Immunity from liability
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The council, its members, the state investment officer, and the employees of the Division of Investment personally are immune from any and all liability for actions taken in good faith in the discharge of the council's responsibilities under the program. Source: SL 2003, ch 112 ,…
SDCL § 13-63-4 Contract with financial institution to serve as program manager
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The council may enter into a contract with any financial institution selected to serve as a program manager and depository. The contract may include terms and conditions, not contrary to federal or state law, as agreed to by the parties. Source: SL 2001, ch 97 , § 4; SL 2022, ch …
SDCL § 13-63-5 Duties of program manager
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A program manager shall: (1) Take all action required to keep the program in compliance with the requirements of this chapter, the rules promulgated by the council pursuant to chapter 1-26 , and any contract with the council to manage the program so that the program is treated as…
SDCL § 13-63-6 Term of contract between council and financial institution
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Any contract executed between the council and a financial institution pursuant to this chapter shall be for a term of at least three years and not more than seven years. Source: SL 2001, ch 97 , § 6.
SDCL § 13-63-7 Conditions applicable to nonrenewed contracts
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If a contract executed between the council and a financial institution pursuant to this chapter is not renewed, all of the following conditions apply at the end of the term of the nonrenewed contract: (1) Accounts previously established and held in investment instruments at the f…
SDCL § 13-63-8 Termination of contract for good cause--Transfer of accounts
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The council may terminate a contract with a financial institution at any time for good cause. If a contract is terminated, the council shall take custody of accounts held at that financial institution and shall seek to promptly transfer the accounts to another financial instituti…
SDCL § 13-63-9 Program operated through accounts--Requirements to open
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The program must be operated through the use of accounts. An account may be opened by any person who desires to save to pay the qualified higher education expenses of an individual by satisfying each of the following requirements: (1) Completing an application in the form prescri…