5 CCR s 30950

Cal. Admin. Code tit. 5, s 30950

CALIFORNIA CODE OF REGULATIONS
TITLE 5. EDUCATION
DIVISION 4.5. SCHOLARSHARE INVESTMENT BOARD
CHAPTER 1. GOLDEN STATE SCHOLARSHARE TRUST PROGRAM
This database is current through 02/02/07, Register 2007, No. 5
s 30950. Scholarshare Trust Definitions.

(a) Existing Definitions. The following terms, as used in these
regulations, are defined in Section 69980 of the Education Code: Act;
administrative fund; benefits; Board; Golden State Scholarshare Trust;
Scholarshare trust; participant; participation agreement; program
administrator; program fund; tuition and fees.

The following terms, as used in these regulations, are defined in the
Internal Revenue Code Section 529 of 1986, as amended, (26 U.S.C. Sec.
529): designated beneficiary; eligible educational institution; member of
the family; qualified higher education expenses; qualified tuition
program; scholarship.

(b) Additional Definitions. The following definitions shall also apply to
the Golden State Scholarshare Trust Program:

Account -means an account established under the Act.

Account owner -means the "participant" as defined in Section 69980 of the
Education Code. An account owner who is an individual (other than an
individual who is a custodian under the California Uniform Transfers to
Minors Act) is specifically referred to in these regulations as an
"individual account owner." An account owner who is a custodian under the
California Uniform Transfers to Minors Act is specifically referred to in
these regulations as a "custodial account owner." An account owner that is
a trust, estate, partnership, association, company or corporation, or a
state or local government agency, is specifically referred to in these
regulations as an "entity account owner." Account owner includes the legal
representative of an account owner.

Annual Report -means a statement meeting the requirements of Section 69990
of the Education Code.

Business day -means any day that the New York Stock Exchange (NYSE) is
open. The close of a business day is the time that the NYSE closes for
that day.

California Uniform Transfers to Minors Act -means the act by that name
that is contained in Part 9 (commencing with Section 3900) of Division 4
of the California Probate Code.

Cash -shall include but not be limited to checks (except for travelers
checks, third-party checks exceeding $10,000, money orders, or cashier's
checks), rollover distributions, payroll deduction, automatic contribution
plan, and electronic funds transfers. Cash does not include property.

Contribution -means cash deposited into an account.

Distributee -means the designated beneficiary or the account owner who
receives or is treated as receiving a distribution from the Scholarshare
trust.

Distribution -means any disbursement from an account.

Earnings -means the total account balance on a particular date minus the
contributions in the account as of that date.

Internal Revenue Code -means the Internal Revenue Code of 1986, as
amended.

Legal representative of an account owner -means an individual, trust,
estate, partnership, association, company or corporation, a custodian
under the California Uniform Transfers to Minors Act or a state or local
government agency empowered by law to act for or on behalf of an account
owner who has entered into a participation agreement pursuant to the Act.
A legal representative of an account owner shall provide to the program
administrator's designee a document establishing the authority of the
legal representative to so act that is signed by the account owner, or a
court order establishing the authority of the legal representative to so
act. The document or court order must be dated within sixty (60) days of
receipt by the Scholarshare trust. The program administrator's designee
shall rely conclusively upon the document or court order until the earlier
of its stated expiration date or the date of receipt by the program
administrator's designee of a document or court order terminating the
authority evidenced thereby. The legal representative of an account owner
shall be deemed to be acting for or on behalf of the account owner in the
account owner's legal capacity.

Non-qualified distribution -means any distribution from an account other
than 1) a qualified distribution; or 2) a withdrawal by reason of the
death or disability of the designated beneficiary of the account or a
scholarship received by the designated beneficiary to the extent that the
amount distributed does not exceed the amount of the scholarship, all as
provided in Section 30954(d); or 3) a rollover distribution.

Qualified distribution -means a distribution from an account to pay
qualified higher education expenses of the designated beneficiary.

Qualified Scholarship Account -means an account opened by an entity
account owner to which amounts contributed, and any earnings thereon, are
intended to be excluded from the gross income of the scholarship recipient
under Section 117 of the Internal Revenue Code.

Qualified Scholarship Account Distribution -means a distribution from a
Qualified Scholarship Account to pay for qualified tuition and related
expenses within the meaning of Section 117 of the Internal Revenue Code.

Rollover distribution -means a distribution or transfer from an account
for a current designated beneficiary that is transferred or deposited
within sixty (60) days of the distribution into an account for another
designated beneficiary who is a member of the family of the current
designated beneficiary. A distribution is not a rollover distribution
unless there is a change of designated beneficiary except that a change of
designated beneficiary is not required for a distribution or transfer that
occurs between qualified tuition programs, provided that such a
distribution or transfer cannot occur more than once within a twelve-month
period from the date of a previous distribution or transfer by the account
owner for the same designated beneficiary. For rollover distributions that
involve a change of designated beneficiary, the newly designated
beneficiary's account may be an account established under the Act or
established within another qualified tuition program and the account owner
must certify in the written request for the rollover distribution that the
new beneficiary is a member of the family of the current beneficiary. If
the rollover distribution is by a state or local government agency or an
entity described in Section 501(c)(3) of the Internal Revenue Code and
identified in Section 30959(a)(2), the newly designated beneficiary can
not be a member of the family of the current designated beneficiary and
the account owner must so certify in the written request.

State or local government agency -means a state or local government (or an
agency or instrumentality thereof) as those terms are used in Section
529(e) of the Internal Revenue Code.

Substantiation -means a document submitted by an entity account owner to
the Scholarshare trust in one of the following forms and dated no more
than sixty (60) days prior to its receipt by the Scholarshare trust:

(1) a corporate by-law extract or corporate resolution certified by
an officer of the corporation (other than an individual authorized
thereby to act as signer for the corporation's account), with raised
seal if in use by the corporation;

(2) a certificate signed by the owner of a sole proprietorship;

(3) a certificate signed by a general partner of a partnership
(other than an individual authorized by the certificate to act as
signer for the partnership's account);

(4) a certificate signed by an officer of a limited liability
company, other company or association (other than an individual
authorized by the certificate to act as signer for the account of
the limited liability company, other company or association);

(5) a certificate signed by the chief executive officer of a state
or local government agency;

(6) a certified copy of a court order establishing an estate and
naming a legal representative of the estate that is authorized to
act as a signer for the account of the estate;

(7) a certificate signed by the trustee of a trust, a court order,
or a certified copy of the portions of a trust instrument, that
confirms the creation of the trust and the identity of the trustee,
and provides authorization for the trustee to act as a signer for
the account of the trust;

(8) a letter or memorandum from the Internal Revenue Service
indicating that the entity is an organization described in Section
501(c)(3) of the Internal Revenue code;

(9) an original memorandum exhibiting the appropriate letterhead
and containing the holographic signature of (a) the chief executive
officer of a corporation or limited liability company; (b) the
general partner of a partnership; (c) the owner of a sole
proprietorship; or (d) the chief executive officer of a state or
local government agency; or

(10) if the entity account owner is unable to provide
substantiation in any of the foregoing forms, the entity account
owner may propose an alternate form of substantiation to the program
administrator's designee for consideration. The program
administrator's designee must review the alternate form of
substantiation for authenticity and completeness and must accept or
reject it. If judged authentic and complete, the program
administrator's designee must act on the alternate form of
substantiation within thirty (30) business days of so determining.
If judged inauthentic or incomplete, the program administrator's
designee must notify the account owner of the rejection of the
alternate form of substantiation and set forth the reason for such
determination in writing within thirty (30) business days of so
determining.

(c) Electronic Communications.

(1) A "written notification", a "written request", or "written" as
used in this Chapter 1 may include an electronic communication
containing an electronic signature that is acceptable under
California or federal electronic signature laws.

(2) A "dated original signature", or "signed" as used in this
Chapter 1, shall include signatures acceptable under California or
federal electronic signature laws.

Note: Authority cited: Sections 69981(d) and 69982(h), Education
Code. Reference: Sections 69980, 69983(a), (e) and (h), Education
Code; Section 24306(c)(A), Revenue and Taxation Code; Sections
3900-3925, Probate Code; and Sections 117(b), 152(a), 501(c)(3) and
529(b) and (c), Internal Revenue Code.

HISTORY

1. New article 17 (sections 30950-30957) and section filed 6-3-99 as an
emergency pursuant to Education Code 69993.5; operative 6-28-99 (Register
99, No. 23). A Certificate of Compliance must be transmitted to OAL by
2-23-
2000 or emergency language will be repealed by operation of law on the
following day.

2. New article 17 (sections 30950-30958) and section refiled 12-30-99 as
an
emergency pursuant to Education Code section 69993.5, including amendment
of
section and Note; operative 12-26-99 (Register 99, No. 53). A Certificate
of
Compliance must be transmitted to OAL by 4-24-2000 or emergency language
will
be repealed by operation of law on the following day.

3. Certificate of Compliance as to 12-30-99 order, including new division
4.5
heading, redesignation of former division 4, chapter 1, article 17 to
division
4.5, chapter 1, and amendment of section and Note, transmitted to OAL
4-21-2000
and filed 6-1-2000 (Register 2000, No. 22).

4. Amendment filed 6-26-2000 as an emergency pursuant to
Education Codesection 69993.5; operative 7-1-2000 (Register 2000, No. 26).
A Certificate
of Compliance must be transmitted to OAL by 12-28-2000 or emergency
language
will be repealed by operation of law on the following day.

5. Amendment of section and Note filed 12-26-2000 as an emergency;
operative 1-
1-2001 (Register 2000, No. 52). A Certificate of Compliance must be
transmitted to OAL by 7-2-2001 pursuant to Education Code section 6993.5
or
emergency language will be repealed by operation of law on the following
day.

6. Certificate of Compliance as to 12-26-2000 order, including further
amendment of subsection (b) - definition of "substantiation" part (10),
transmitted to OAL 5-22-2001 and filed 7-5-2001 (Register 2001, No. 27).

7. Amendment of section and Note filed 12-18-2001 as an emergency;
operative 1-
1-2002 (Register 2001, No. 51). Pursuant to
Education Code section69993.5, a Certificate of Compliance must be
transmitted to OAL by 7-1-2002 or
emergency language will be repealed by operation of law on the following
day.

8. Editorial correction ofHistory7 (Register 2002, No. 21).

9. Editorial correction ofHistory7 (Register 2002, No. 31).

10. Reinstatement of section as it existed prior to 12-18-2001 emergency
amendment by operation of Government Code section 11346.1(f) (Register
2002, No. 31).

11. Amendment of section and Note filed 7-31-2002 as an emergency;
operative 7-
31-2002 (Register 2002, No. 31). A Certificate of Compliance must be
transmitted to OAL by 12-2-2002 or emergency language will be repealed by
operation of law on the following day.

12. Certificate of Compliance as to 7-31-2002 order transmitted to OAL
11-13-
2002 andfiled 12-5-2002 (Register 2002, No. 49).

13. Amendment of subsection (b) filed 12-1-2003; operative 1-1-2004
(Register
2003, No. 49).

5 CCR s 30950, 5 CA ADC s 30950
1CAC

5 CA ADC s 30950

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