Arizona Laws 15-1873. Treasurer; powers and duties; AZ529, Arizona’s education savings plan trust fund
A. The treasurer shall:
Terms Used In Arizona Laws 15-1873
- Account: means an individual trust account in the fund that is established as prescribed in this article. See Arizona Laws 15-1871
- Account owner: means the person who enters into a tuition savings agreement pursuant to this article, who is an account owner within the meaning of section 529 of the internal revenue code and who is designated at the time an account is opened as having the right to withdraw monies from the account before the account is disbursed to or for the benefit of the designated beneficiary. See Arizona Laws 15-1871
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Board: means the state board of investment. See Arizona Laws 15-1871
- Contract: A legal written agreement that becomes binding when signed.
- Financial institution: means the state treasurer's office or any bank, commercial bank, national bank, savings bank, savings and loan association, credit union, insurance company, brokerage firm or other similar entity that is authorized to do business in this state. See Arizona Laws 15-1871
- Fund: means AZ529, Arizona's education savings plan trust fund that constitutes a public instrumentality of this state and that is established by section 15-1873. See Arizona Laws 15-1871
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Plan: means AZ529, Arizona's education savings plan that is established under this article and that constitutes a qualified tuition program as defined in section 529 of the internal revenue code. See Arizona Laws 15-1871
- Treasurer: means the state treasurer. See Arizona Laws 15-1871
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
- Trustee: A person or institution holding and administering property in trust.
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
1. Develop and implement the plan in a manner consistent with this article by adopting rules, guidelines and procedures.
2. Retain professional services, if necessary, including accountants, auditors, consultants and other experts.
3. Seek rulings and other guidance from the United States department of the treasury and the internal revenue service relating to the plan.
4. Make changes to the plan required for the participants in the plan to obtain the federal income tax benefits or treatment provided by section 529 of the internal revenue code.
5. Interpret, in rules, policies, guidelines and procedures, this article broadly in light of its purpose and objectives.
6. Charge, impose and collect administrative fees and service charges in connection with any agreement, contract or transaction relating to the plan.
7. Negotiate and select the financial institution or institutions to act as the depository and manager of the plan in accordance with this article. On approval by the board, the treasurer may use existing investment funds established pursuant to sections 35-314.03, 35-316 and 35-326 for this purpose.
8. Maintain the plan on behalf of this state as required by section 529 of the internal revenue code.
9. Enter into tuition savings agreements with account owners pursuant to this article.
B. AZ529, Arizona’s education savings plan trust fund is established consisting of the assets of AZ529, Arizona’s education savings plan. The treasurer shall administer the fund, and the board shall act as the trustee of the fund. Monies in the fund are continuously appropriated. The fund is designated a public instrumentality of this state that is created for an essential public purpose. Trust interests in the fund shall be designated by the treasurer for each account owner. The fund shall be separated into a trust account and an operating account. The trust account shall include amounts received by AZ529, Arizona’s education savings plan from account owners pursuant to tuition savings agreements and interest and investment income earned by the fund. The treasurer shall make transfers from the trust account to the operating account as necessary to immediately pay obligations under tuition savings agreements, operating expenses and administrative costs of the plan. The treasurer shall deposit and invest monies or other amounts in the fund with financial institutions in accordance with section 15-1874.