Title 13, EDUCATION

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 …

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…

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.

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. …

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…

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…

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…

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…

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…

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…

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…

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.

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…

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…

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…

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…

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 …

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…

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…

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:…

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 ,…

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 …

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…

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.

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…

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…

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…