California Code of Regulations › Title 5 - Education › Division 4.5 - Scholarshare Investment Board › Chapter 1 - Golden State Scholarshare Trust Program › Section 30950 - Scholarshare Trust Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Existing
				Definitions. The following terms, as used in these regulations, are defined in
				Section
				69980 of the
				Education Code unless the context requires otherwise: Administrative fund; benefits;
				Board; Golden State Scholarshare College Savings Trust; Scholarshare trust;
				participant; participation agreement; 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.
Act--means the Golden State Scholarshare Trust Act
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 or its 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 or its
				  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 or
				  its 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.
Program Administrator--means the Scholarshare Investment
				  Board.
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 or its designee for consideration. The program administrator or its
				designee must review the alternate form of substantiation for authenticity and
				completeness and must accept or reject the form. If determined to be authentic and
				complete, the program administrator or its designee must act on the alternate form
				of substantiation within thirty (30) business days of determination. If determined
				to be inauthentic or incomplete, the program administrator or its 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 determination.