5 CCR s 30959

Cal. Admin. Code tit. 5, s 30959

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 30959. Qualified Scholarship Accounts.

(a) Opening Qualified Scholarship Accounts. A qualified scholarship
account may be opened by any of the following entities:

(1) a state or local government agency or an entity described in
Section 501(c)(3) of the Internal Revenue Code that has opened the
qualified scholarship account as part of a scholarship program for
the benefit of beneficiaries to be named when the scholarships are
awarded; or

(2) any entity identified in Section 30951(b) that has opened the
qualified scholarship account for the benefit of a named
beneficiary.

(b) Participation Agreement. To open a qualified scholarship account, an
entity account owner must submit a completed and signed participation
agreement with either an initial contribution or a selection of electronic
funds transfer, automatic contribution plan, or rollover distribution as
the method of initial contribution to the program administrator's
designee.

(c) Change of Beneficiary for Qualified Scholarship Account. An entity
identified in paragraph (a)(2) of this Section, except a state or local
government agency or an entity described in Section 501(c)(3) of the
Internal Revenue Code, is not permitted to change the beneficiary of the
qualified scholarship account. 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) may change the beneficiary of a
qualified scholarship account at any time by submitting a written request
to the program administrator's designee.

(d) Rollover Distributions for Qualified Scholarship Account. An entity
identified in paragraph (a)(2) of this Section, except for a state or
local government agency or an entity described in Section 501(c)(3) of the
Internal Revenue Code, is not permitted to make a rollover distribution. 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) may make any rollover distribution set forth in Section 30958
at any time by submitting a written request to the program administrator's
designee with substantiation that the rollover distribution is authorized
by the entity account owner and that the signer of the request is
authorized to conduct the transaction, and by complying with applicable
federal and state law. The written request for a rollover distribution
must contain a certification that the newly designated beneficiary is not
a member of the family of the previous beneficiary.

(e) Qualified Scholarship Account Distribution. A qualified scholarship
account distribution may be taken at any time by an entity identified in
paragraph (a) of this Section by submitting a written request to the
program administrator's designee with substantiation that the qualified
scholarship account distribution is authorized by the entity account owner
and that the signer of the request is authorized to conduct the
transaction. A qualified scholarship account distribution must be paid
directly to an eligible educational institution.

Note: Authority cited: Sections 69981(d) and 69982(h), Education
Code. Reference: Sections 69982(j)(1), 69983(f), 69986(h); and
Sections 117(b) and 529, Internal Revenue Code.

HISTORY

1. New section 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.

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

3. Amendment of subsections (b)-(c) 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.

4. Editorial correction ofHistory3 (Register 2002, No. 21).

5. Editorial correction ofHistory3 (Register 2002, No. 31).

6. 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).

7. Amendment of subsections (b)-(c) 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.

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

9. Repealer of subsection (d) and subsection relettering filed 12-1-2003;
operative 1-1-2004 (Register 2003, No. 49).

5 CCR s 30959, 5 CA ADC s 30959
1CAC

5 CA ADC s 30959

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