Utah Code 53B-8a-204. Distribution of program money — Application process — Prioritization — Account agreements
Current as of: 2024 | Check for updates
|
Other versions
(1) The plan shall distribute money in the program by creating a 529 savings account for an eligible individual identified by a community partner.
Terms Used In Utah Code 53B-8a-204
- Account agreement: means an agreement between an account owner and the Utah Educational Savings Plan entered into under this chapter. See Utah Code 53B-8a-102
- Account owner: means a person, estate, or trust, if that person, estate, or trust has entered into an account agreement under this chapter to save for the higher education costs on behalf of a beneficiary. See Utah Code 53B-8a-102
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Beneficiary: means the individual designated in an account agreement to benefit from the amount saved for higher education costs. See Utah Code 53B-8a-102
- Board: means the Utah Board of Higher Education described in Section 53B-1-402. See Utah Code 53B-1-101.5
- Community partner: means a nonprofit organization that provide services to a child who is economically disadvantaged or a family member, legal guardian, or legal custodian of a child who is economically disadvantaged. See Utah Code 53B-8a-201
- Contract: A legal written agreement that becomes binding when signed.
- Eligible individual: means an individual who:(6)(a) is under 20 years of age and is a resident of Utah;(6)(b) is economically disadvantaged; and(6)(c) receives, or has a family member, a foster family member, or a legal custodian or legal guardian who receives, services from a community partner. See Utah Code 53B-8a-201
- Person: means :
(24)(a) an individual;(24)(b) an association;(24)(c) an institution;(24)(d) a corporation;(24)(e) a company;(24)(f) a trust;(24)(g) a limited liability company;(24)(h) a partnership;(24)(i) a political subdivision;(24)(j) a government office, department, division, bureau, or other body of government; and(24)(k) any other organization or entity. See Utah Code 68-3-12.5- Plan: means the Utah Educational Savings Plan created in Section 53B-8a-103. See Utah Code 53B-8a-102
- Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
- Program: means the Student Prosperity Savings Program created in Section 53B-8a-202. See Utah Code 53B-8a-201
- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
- Technical college: means an institution of higher education described in Subsection 53B-1-102(1)(b). See Utah Code 53B-1-101.5
(2)(2)(a)(2)(a)(i) The plan shall carry out the responsibility described in Subsection (1) by establishing a process in which a community partner may apply for an allocation of program money to designate for eligible individuals.(2)(a)(ii) The Utah Board of Higher Education shall establish the application process for a community partner to apply for an allocation of program money.(2)(a)(iii) The application process described in Subsection (2)(a)(ii) shall include:(2)(a)(iii)(A) the criteria for a community partner to apply for an allocation of program money;(2)(a)(iii)(B) the criteria that the plan will use to prioritize applications if the dollar amounts requested in the applications exceed the dollar amount available;(2)(a)(iii)(C) the requirements for establishing a 529 savings account in the name of an eligible individual; and(2)(a)(iii)(D) the roles and responsibilities of a community partner that makes a successful application for an allocation of program money.(2)(b)(2)(b)(i) A community partner that receives an allocation of program money shall enter into a contract with the plan.(2)(b)(ii) The contract described in Subsection (2)(b)(i) shall:(2)(b)(ii)(A) define the roles and responsibilities of the community partner and the plan with regard to the community partner’s allocation of program money; and(2)(b)(ii)(B) specify that the individual the community partner identifies to receive a portion of the community partner’s allocation is an eligible individual.(3) If the plan approves a community partner’s application for an allocation of program money, the plan may not promise or otherwise encumber the allocation to any other person unless the allocation is forfeited under Subsection (5)(b)(ii).(4)(4)(a) A community partner shall identify each eligible individual who will receive a portion of the community partner’s allocation of program money.(4)(b) After a community partner identifies an eligible individual to receive a portion of the community partner’s allocation, the community partner shall notify the plan of:(4)(b)(i) the amount of the community partner’s allocation that shall transfer to a 529 savings account in the name of the identified eligible individual; and(4)(b)(ii) the amount, if any, that the community partner will be contributing in accordance with Part 1, Utah Educational Savings Plan, to the 529 savings account on behalf of the identified eligible individual.(5)(5)(a) Upon receiving the information described in Subsection (4)(b), the plan shall establish a 529 savings account for the identified eligible individual, with the community partner as the account owner.(5)(b) The community partner shall inform the beneficiary that:(5)(b)(i) within three years after the day on which the beneficiary graduates from high school, the beneficiary shall enroll in:(5)(b)(i)(A) a credit-granting institution of higher education within the state system of higher education;(5)(b)(i)(B) a private, nonprofit college or university in the state that is accredited by the Northwestern Association of Schools and Colleges; or(5)(b)(i)(C) a technical college; and(5)(b)(ii) if the beneficiary fails to enroll within three years after the day on which the beneficiary graduates from high school, any money that remains in the 529 savings account shall be returned to the program.(5)(c) After entering into the account agreement described in Subsection (5)(a), the plan shall deposit into the beneficiary’s 529 savings account the amount of the allocation described in Subsection (4)(b)(i). - Person: means :