KRS § 141.512 — KY Code / Title XI / Chapter 141 / Section 141.512
141.512 Minimal allocation of contributions required to education opportunity accounts by account-granting organization -- Standard application process for establishment of student eligibility for an account -- Transfer of funds from one account-granting organization to another -- Donations. (See LRC Note below)
Status: in_force

141.512 Minimal allocation of contributions required to education opportunity

accounts by account-granting organization -- Standard application process for

establishment of student eligibility for an account -- Transfer of funds from

one account-granting organization to another -- Donations. (See LRC Note

below)

(1) An AGO shall ensure that at least ninety percent (90%) of the total annual

contributions received are allocated to EOAs no later than the last day of the AGO's

immediately succeeding calendar year or fiscal year, as applicable, unless the

current year's total annual contributions received by the AGO exceed an amount

equal to the average of the total annual contributions received in the immediately

preceding three (3) years by more than fifteen percent (15%), in which case the

excess amount may be carried forward and expended for EOAs in three (3) equal

installments over the immediately succeeding three (3) years.

(2) An AGO shall maintain separate accounts for EOA funds and operating funds.

(3) Any interest that accrues from contributions that are eligible for the tax credit

permitted by KRS 141.522 shall be allocated by the AGO to fund EOAs.

(4) An AGO shall create a standard application process for parents to establish their

student’s eligibility for an EOA. An AGO shall ensure that the application is readily

available to interested families and may be submitted through various sources,

including the Internet.

(5) An AGO shall provide parents with a written explanation of the allowable uses of

EOA funds, the responsibilities of parents, and the duties of the AGO and the role

of any private financial management firms or other organizations that the AGO may

contract with to process EOA transactions or maintain records for other aspects of

the EOA program.

(6) (a) An AGO may transfer funds to another AGO if additional funds are required

to meet EOA demands at the receiving AGO or if the transferring AGO

determines it cannot continue to operate due to any reason.

(b) If funds are transferred for the purpose of meeting EOA demands, no more

than a combined aggregate of ten percent (10%) of the AGOs' total annual

contributions received may be retained by the AGOs for administrative

expenses.

(c) All transferred funds shall be allocated by the receiving AGO to its account

for EOAs.

(d) All transferred amounts received by an AGO shall be separately disclosed in

the receiving AGO’s annual report for certification renewal pursuant to KRS

141.510.

(e) An AGO that receives a transfer of funds from an AGO that has determined it

will not continue to operate shall agree to fund the EOAs established by the

transferring AGO to the extent funds are available. The receiving AGO shall

also prioritize the funding of transferred EOAs before funding new EOA

applicants.

(7) An AGO may accept donations that are not eligible for the tax credit permitted by

KRS 141.522, gifts, and grants to cover administrative costs, to inform the public

about the EOA program, to fund additional EOAs or to offer assistance outside of

the EOA program. Donations that are not eligible for the tax credit permitted by

KRS 141.522 shall not be subject to KRS 141.500 to 141.528.