5 CCR s 30958

Cal. Admin. Code tit. 5, s 30958

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 30958. Rollover Distributions.

(a) Rollover Distribution From Another Qualified Tuition Program. An
account owner (other than a custodial account owner) may make a rollover
distribution at any time from another qualified tuition program to an
account, either owned by the same or a different account owner, by
submitting a written request to the program administrator's designee and
by complying with applicable federal and state law governing this
transaction. The rollover distribution shall be effective provided that
the transfer of funds does not cause the aggregate amount of contributions
held for the new designated beneficiary to exceed the maximum account
balance limit applicable to that beneficiary.

(b) Rollover of Account Funds Methods. A rollover of account funds from
another qualified tuition program shall be effective through a direct
transfer of funds from the other qualified tuition program to an account,
or as a deposit of the funds by the account owner into an account within
60 days of withdrawal of the funds from the other qualified tuition
program. Both the direct transfer of funds and the deposit of funds by the
account owner must be accompanied by a written statement from the other
qualified tuition program that identifies the portion of the amount
directly transferred, or deposited, that represents contributions and the
portion of the amount that represents earnings.

(c) Limitation of Rollover of Account Funds to Savings Program. A rollover
distribution from another qualified tuition program shall not be accepted
unless the funds are transferred from a tuition savings account as defined
in Section 529(b)(1)(A)(ii) of the Internal Revenue Code.

(d) Transfer of Account Funds as Rollover Distribution. An account owner
(other than a custodial account owner) may transfer funds from an account
to another account either owned by the same or a different account owner
at any time by submitting a written request to the program administrator's
designee. The transfer of account funds shall be effective provided that:
(1) the funds are transferred to an account for a new designated
beneficiary who is a member of the family of the designated beneficiary of
the account from which the funds are being transferred and the account
owner so certifies in the written request (unless the entity making the
rollover distribution is 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) in which case the account owner must certify that
the newly designated beneficiary is not a member of the family of the
current beneficiary); and (2) the transfer of funds does not cause the
aggregate amount of contributions held for the new designated beneficiary
to exceed the maximum account balance limit applicable to that
beneficiary.

(e) Execution of New Participation Agreement. Any rollover distribution
that is intended to transfer funds to a new account not yet established
under the Act shall not be effective until the account owner who is to
receive the transferred funds has submitted to the program administrator's
designee a completed and signed participation agreement for the new
account and the account has been established.

(f) Rollover Distribution to Another Qualified State Tuition Program. An
account owner (other than a custodial account owner) may make a rollover
distribution at any time from an account to another qualified tuition
program by submitting a written request to the program administrator's
designee and by complying with applicable federal and state law governing
this transaction.

(1) The program administrator's designee shall treat the rollover
distribution as a non-qualified distribution unless the program
administrator's designee receives confirmation that the amount of
the distribution has been deposited in another qualified tuition
program within sixty (60) days of distribution from the account.

(g) Rollover Distributions Requested By Entity Account Owners. An entity
account owner must provide with the written request for a rollover
distribution substantiation that the rollover distribution is authorized
by the entity and that the signer of the written request is authorized to
conduct the transaction.

Note: Authority cited: Sections 69981(d) and 69982(h), Education
Code. Reference: Sections 69982(j)(1), 69983(f) and 69986(h),
Education Code; Section 24306(c)(4)(A) and (B) Revenue and Taxation
Code; and Sections 152(a), 529(b)(1)(A)(ii) and (c)(3)(C), Internal
Revenue Code.

HISTORY

1. New section filed 12-30-99 as an emergency pursuant to
Education Codesection 69993.5; 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.

2. Certificate of Compliance as to 12-30-99 order, including amendment of
subsections (a) and (d), transmitted to OAL 4-21-2000 and filed 6-1-2000
(Register 2000, No. 22).

3. 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.

4. Certificate of Compliance as to 12-26-2000 order transmitted to OAL
5-22-
2001 and filed 7-5-2001 (Register 2001, No. 27).

5. Amendment filed 12-18-2001 as an emergency; operative 1-1-2002
(Register
2001, No. 51). Pursuant to Education Code section 69993.5, 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.

6. Editorial correction ofHistory5 (Register 2002, No. 21).

7. Editorial correction ofHistory5 (Register 2002, No. 31).

8. 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).

9. Amendment 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.

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

11. Amendment of subsections (a) and (d) filed 12-1-2003; operative
1-1-2004
(Register 2003, No. 49).

5 CCR s 30958, 5 CA ADC s 30958
1CAC

5 CA ADC s 30958

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