Arkansas Administrative Code › Agency 236 - ARKANSAS STATE TREASURER › Division 02 - 529 Program and Financial Education/Section 529 Plan Review Committee › Rule 236.02.22-001 - The Arkansas Tax-Deferred Tuition Savings Program

Current through Register Vol. 49, No. 6, June, 2024
THE ARKANSAS BRIGHTER FUTURE FUND PLAN
AMENDED AND RESTATED PROGRAM RULES
Section 1.
General
The Arkansas Brighter Future Fund Plan (the "Program"), is
				established pursuant to the Arkansas Brighter Future Fund Plan Act, Chapter 84
				of Title 6 of the Arkansas Code, as amended, codified as Ark. Code Ann. §
									6-84-101, et seq. (the
				"Act"). The Program is designed to satisfy the requirements of Section 529 of
				the Internal Revenue Code of 1986, as amended, and any regulations, rulings,
				announcements and other guidance issued thereunder (collectively referred to as
				"Section 529"). In accordance with the Act, the Section 529 Plan Review
				Committee (the "Committee") has established the following rules governing the
				operation of the Plan. To the extent these rules are interpreted to be
				inconsistent with provisions of Section 529, the provisions of Section 529
				shall prevail. The Program may be affected by subsequent changes in federal and
				state legislation. The Committee shall have the right to modify these rules
				from time to time to comply with then current federal law and regulations
				applicable to the Program and for other purposes. Capitalized terms not defined
				herein shall have the meaning ascribed to them in the Act.
Section 2.
Definitions
A.
Account Application
			 Form
means an application substantially in the form approved by
			 the Committee from time to time.
B.
Age-Based Option
means, a Portfolio the assets of
			 which are invested in a combination of Underlying Investments, currently based
			 on the ages of Designated beneficiaries specified for such Portfolio.
C.
Approved
			 Allocation
means the allocation of assets for a Portfolio as
			 approved by the Committee as may be set forth in the Program Management
			 Agreement.
D.
Approved
			 Allocation Effective Date
means the annual date (July 1) by which
			 the Approved Allocation for a Portfolio is approved, as may be set forth in the
			 Program Management Agreement.
E.
Arkansas Administration Fee
means any fee paid out of
			 the Plan's assets to the Committee pursuant to a Program Management
			 Agreement.
F.
Business
			 Day
means each day on which the New York Stock Exchange is open
			 for trading.
G.
Cash
means U.S. dollars, checks or electronic funds
			 transfers, or any other method deemed appropriate by the Committee.
H.
Code
means the
			 Internal Revenue Code of 1986, as amended.
I.
Contribution
			 Maximum
means the maximum amount that an Account Owner can
			 contribute to all Program Accounts for the same Designated Beneficiary, as
			 determined from time to time by the Committee based upon a methodology which
			 calculates such maximum amount on an annual basis using the cost of up to seven
			 years of tuition, fees, books, supplies and equipment, and room and board at a
			 higher educational institution.
J.
Custom Portfolio Option, iShares Asset Allocation Portfolios, or
			 Custom iShares Portfolio
means a Portfolio the assets of which are
			 invested in one or a combination of Underlying Investments, in accordance with
			 a fixed asset allocation that does not change based on the age or
			 years-to-enrollment of a Designated Beneficiary.
K.
Designated Beneficiary Change
			 Form
means a change of a Designated Beneficiary substantially in
			 the form approved by the Committee, from time to time.
L.
Eligible
			 Participant
means an individual, other person, or legal entity
			 eligible under the Act, under applicable federal tax law and regulations to
			 participate in the Program.
M.
Eligible Scholarship
means a scholarship or other
			 payment qualifying for an exemption from the withdrawal penalty required by
			 Code Section 529, or any successor provision thereto, of the Code.
N.
Investment Fund
means the portion of a Plan's assets invested in Underlying Investments (i.e.,
			 that portion of a Plan's assets not held in the Operating Fund).
O.
Investment
			 Manager
means the entity contracted by the Program Manager to
			 manage the assets of the Portfolios, as approved by the Committee.
P.
Management Fee
means any fee paid out of a Plan's assets to the Program Manager pursuant to a
			 written agreement approved by the Committee.
Q.
MSRB
means
			 Municipal Securities Rulemaking Board and any duly established entity which
			 succeeds to the functions thereof.
R.
Net Asset Value or
			 NAV
means: the net asset value per share of the Underlying
			 Investments as of the NYSE on that Business Day, such NAV to reflect:
(1) adjustments, if any, to the net asset
			 value per share of any Underlying Investments made after the market close;
(2) net purchase orders and net
			 redemption orders received by the Investment Manager from the Program Manager
			 each Business Day;
(3) the
			 deduction and payment of fees and expenses from the Portfolios by the Program
			 Manager, or by the Investment Manager; and
(4) the Investment Manager's reinvestment,
			 into any Underlying Investment it or its affiliate offers and manages, of any
			 income, dividends and/or capital gain distributions paid by Underlying
			 Investments.
S.
NYSE
means the New York Stock Exchange.
T.
Operating Account
means the account established for the purpose of holding the Arkansas
			 Administration Fee.
U.
Operating Fund
means that portion of the Plan's assets
			 not held in the Investment Fund.
V.
Participation Agreement
means an agreement between an
			 Account Owner and the Trust substantially in the form approved by the
			 Committee, from time to time, which establishes the Account and the obligations
			 of the Trust and the Account Owner.
W.
Plan
means either
			 (i) the direct-sold Plan established within the Program, (ii) the advisor-sold
			 Plan established within the Program, or (iii) any other college savings plan
			 established pursuant to the Act and administered by the Committee,
			 collectively, under the Trust.
X.
Portfolio
means one of the Plan Portfolios established
			 within the Investment Fund to which Contributions may be allocated, and that
			 are invested in Underlying Investments.
Y.
Program
			 Description
means the complete disclosure document or set of
			 documents describing a Plan, including any supplement(s) thereto, each as
			 amended from time-to-time, constituting an "official statement" within the
			 meaning of Rule 15c2-12 under the Securities Exchange Act of 1934, as amended,
			 and the rules of the MSRB and any successor to the applicable functions
			 thereof.
Z.
Program
			 Distributor
means the program distributor employed by the
			 Committee pursuant to Ark. Code Ann. §
									6-84-105,
			 or any successor provision thereto, and designated as such in the then current
			 Program Description.
AA.
Program Management Agreement
means a written agreement
			 among the Trust, the Committee and the Program Manager.
BB.
Program Manager
means both the program manager and the recordkeeping and servicing agent
			 employed by the Committee pursuant to Ark. Code Ann. §
									6-84-105,
			 or any successor provision thereto, and designated as such in a Program
			 Management Agreement.
CC.
Rollover Contribution
means a Contribution to an
			 Account which is transferred to or deposited in the Account from another
			 program operating as a "qualified tuition program" within the meaning of Code
			 Section 529, or any successor provision thereto, of the Code.
DD.
Rollover
			 Distribution
means a distribution or transfer from an Account
			 which is transferred to or deposited in another program operating as a
			 "qualified tuition program" within the meaning of Section 529, or any successor
			 provision thereto, of the Code.
EE.
Section 529 Plan Review Committee or Committee
means
			 the committee created pursuant to Ark. Code Ann. §
									6-84-105,
			 or any successor provision thereto.
FF.
Series
means a
			 class of units of a Portfolio.
GG.
State
means the State of Arkansas, acting through its
			 executive, administrative, legislative and judicial branches.
HH.
Trust
means the
			 Arkansas Brighter Future Fund Plan Trust created under Ark. Code Ann. §
									6-84-104.
II.
Underlying
			 Investments
means exchange traded funds, securities, separate
			 accounts, registered mutual funds or other investments in which assets of a
			 Portfolio are invested.
JJ.
Withdrawal
means a Qualified Withdrawal or a
			 Nonqualified Withdrawal.
KK.
Withdrawal
Request means a request by an Account Owner
			 to effect a Withdrawal substantially in the form or other process approved by
			 the Committee, from time to time.
LL.
Year-of-Enrollment
			 Portfolio
means a Portfolio the assets of which are invested in a
			 combination of Underlying Investments based upon the Designated Beneficiary's
			 anticipated year of enrollment as determined by the Account Owner.