Louisiana Administrative Code › Title 28 - EDUCATION › Part VI - Student Financial Assistance-Higher Education Savings › Chapter 7 - START K12 › Section VI-707 - Applicable Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
A. Words and terms not otherwise defined in these rules shall
				  have the meanings ascribed to such words and terms in this Section. Where the
				  masculine is used in these rules, it includes the feminine, and vice versa;
				  where the singular is used, it includes the plural, and vice versa.
Account Owner
-the person(s), organization or
				  group that completes the START K12 Program owner's agreement on behalf of a
				  beneficiary and is the account owner of record of all funds credited to the
				  account.
Beneficiary
-the person named by the account
				  owner in the START K12 owner's agreement or the person named by the LATTA when
				  authorized to make such a designation by the owner of an account that is
				  classified under §711.A.5 as the individual entitled to apply the account
				  balance, or portions thereof, toward payment of their qualified education
				  expenses.
Beneficiary's Family
-for the purpose of
				  §711.A.5 one of the following persons:
a. the beneficiary's parent(s) or court ordered custodian;
				  or
b. a person who claims the beneficiary as a dependent on his
				  or her federal income tax return for the previous year; or
c. a person who certified that the beneficiary lives with
				  him, that he provides more than 50 percent of the beneficiary's support for the
				  previous year and that he was not required to file an income tax return for the
				  previous year.
Current Value
-the value of an education
				  savings account at a given point in time.
a. The current value of fixed earnings investment options
				  includes the accumulated value of the principal deposited and earnings on
				  deposits.
b. The current value of variable earnings investment options
				  includes the number of units in the investment option purchased multiplied by
				  the current value of each unit. This value may be more or less than the amount
				  originally deposited.
Deposits
-the actual amount of money received
				  from an account owner for investment in a START K12 account. Deposits do not
				  include earnings on deposits.
Disabled
or
Disability
-an
				  individual who is considered to be disabled because he/she is unable to engage
				  in any substantial gainful activity by reason of any medically determinable
				  physical or mental impairment which can be expected to result in death or to be
				  of long-continued and indefinite duration. An individual shall not be
				  considered disabled unless he furnishes proof of the existence thereof in such
				  form and manner as the LATTA may require.
Educational Term
-a semester, quarter, term,
				  summer session, inter-session, or an equivalent unit.
Eligible Educational Institution
-a public or
				  approved nonpublic elementary or secondary school in Louisiana that contains
				  any of the grades kindergarten through twelve.
False or Misleading Information
-a statement
				  or response made by a person, which is knowingly false or misleading, and made
				  for the purpose of establishing a program account and/or receiving benefits to
				  which the person would not otherwise be entitled.
Fixed Earnings
-the placement of all deposits
				  in a START K12 Account, including the interest earned thereon, in investments
				  that normally provide a fixed rate of return for a specific period of
				  time.
Legal Entity
-juridical person including, but
				  not limited to, groups, trusts, estates, associations, organizations,
				  partnerships, and corporations that are incorporated, organized, established,
				  or authorized to conduct business in accordance with the laws of one or more
				  states or territories of the United States. A natural person is not a legal
				  entity.
Louisiana Education Tuition and Savings Fund
(
the Fund
)-is a special permanent fund maintained by the
				  Louisiana state treasurer for the purpose of the START Saving Program and the
				  START K12 Program and is the account into which all initial deposits made to
				  START K12 Program accounts are deposited.
Louisiana Office of Student Financial
				  Assistance
(
LOSFA)
-the agency of state government
				  responsible for administering the START K12 Program under the direction of the
				  Louisiana Tuition Trust Authority.
Louisiana Resident
-
a. any person who resided in the state of Louisiana on the
				  date of the application and who has manifested intent to remain in the state by
				  establishing Louisiana as legal domicile, as demonstrated by compliance with
				  all of the following:
i. if registered to vote, is registered to vote in
				  Louisiana;
ii. if licensed to drive a motor vehicle, is in possession of
				  a Louisiana driver's license;
iii. if owning a motor vehicle located within Louisiana, is
				  in possession of a Louisiana registration for that vehicle;
iv. if earning an income, has complied with state income tax
				  laws and regulations;
b. a member of the Armed Forces stationed outside of
				  Louisiana who claims Louisiana on his/her official DD Form 2058 as his/her
				  legal residence for tax purposes, and is in compliance with state income tax
				  laws and regulations, shall be considered eligible for program
				  participation;
c. a member of the Armed Forces stationed in Louisiana under
				  permanent change of station orders shall be considered eligible for program
				  participation;
d. persons less than 21 years of age are considered Louisiana
				  residents if they reside with and are dependent upon one or more persons who
				  meet the above requirements;
e. a legal entity is considered to be a Louisiana resident if
				  it is incorporated, organized, established or authorized to conduct business in
				  accordance with the laws of Louisiana or registered with the Louisiana
				  Secretary of State to conduct business in Louisiana and has a physical place of
				  business in Louisiana.
Louisiana Tuition Trust Authority
				  (LATTA)
-the statutory body responsible for the administration of the
				  START Saving Program.
Maximum Allowable Account
				  Balance
-$180,000.
Member of the Family
(with respect to the
				  designated beneficiary)-
a. an individual who bears one of the following relationships
				  to such beneficiary:
i. a son or daughter of the beneficiary, or a descendant of
				  either;
ii. a stepson or stepdaughter of the beneficiary;
iii. a brother, sister, stepbrother, or stepsister of the
				  beneficiary;
iv. the father or mother of the beneficiary, or an ancestor
				  of either;
v. a stepfather or stepmother of the beneficiary;
vi. a son or daughter of a brother or sister of the
				  beneficiary;
vii. a brother or sister of the father or mother of the
				  beneficiary; or
viii. a son-in-law, daughter-in-law, father-in-law,
				  mother-in-law, brother-in-law, or sister-in-law of the beneficiary; or
ix. a first cousin of the beneficiary; or
b. the spouse of an individual listed in Clauses
				  a.i-viii.
Natural Person
-a human being.
Other Person
(with respect to any designated
				  beneficiary)-any person, other than the beneficiary, whether natural or
				  juridical, who is not a member of the family, including but not limited to
				  individuals, groups, trusts, estates, associations, organizations,
				  partnerships, corporations, and custodians under the Uniform Transfer to Minors
				  Act (UTMA).
Owner's Agreement
-the agreement for program
				  participation that the account owner completes and signs. It incorporates, by
				  reference,
				  R.S.
				  17:3100.1 et seq., and the rules promulgated
				  by the LATTA to implement this statutory provision and any other state or
				  federal laws applicable to the agreement and the terms and conditions as set
				  forth therein.
Person
-a human being or a juridical
				  entity.
Qualified Education Expenses
-expenses for
				  tuition in connection with enrollment or attendance at an elementary or
				  secondary school in grades kindergarten through twelve.
Redemption Value
-the cash value of the money
				  in a START K12 Program account invested in a fixed earnings option that are
				  attributable to the sum of the principal deposited and the earnings on
				  principal authorized to be credited to the account by the LATTA, less any
				  disbursements and refunds. The redemption value is not applicable to a START
				  K12 Program account invested in variable earnings.
Refund Recipient
-the person designated by
				  the account owner in the START K12 Program owner's agreement or by operation of
				  law to receive refunds from the account. The refund recipient can only be the
				  account owner or the beneficiary.
START K12 Account
-a savings account
				  established by a natural person or a legal entity to pay qualified education
				  expenses of the designated beneficiary.
Trade Date
-the date that a deposit to an
				  investment option that includes variable earnings is assigned a value in units,
				  the date a disbursement or refund from an investment option that includes
				  variable earnings is assigned a value, or the date of a change in investment
				  options that includes variable earnings is assigned a value, whichever is
				  applicable.
Tuition
-the mandatory educational charge
				  required as a condition of enrollment.
Variable Earnings
-refers to that portion of
				  funds in a START K12 Program account invested in equities, bonds, short-term
				  fixed income investments or a combination of any of the three.
Variable Earnings Transaction Fund
-the
				  subaccount established within the Louisiana Education Tuition and Savings Fund
				  to receive funds as directed by rule.
AUTHORITY NOTE:
				  Promulgated in accordance with
				  R.S.
				  17:3100.1 et
				  seq.