Cal. Code Regs. tit. 5 § 30950

Current through Register 2024 Notice Reg. No. 50, December 13, 2024

Section 30950 - Scholarshare Trust Definitions

(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.

(c) Electronic Communications.

(1) A "written notification", a "written request", or "written" as used in this Chapter 1 may include an electronic communication containing an electronic signature that is acceptable under California or federal electronic signature laws.

(2) A "dated original signature", or "signed" as used in this Chapter 1, shall include signatures acceptable under California or federal electronic signature laws.

Cal. Code Regs. Tit. 5, § 30950

1. New article 17 (sections 30950-30957) and section filed 6-3-99 as an emergency pursuant to Education Code 69993.5; operative 6-28-99 (Register 99, No. 23). A Certificate of Compliance must be transmitted to OAL by 2-23-2000 or emergency language will be repealed by operation of law on the following day.
2. New article 17 (sections 30950-30958) and section refiled 12-30-99 as an emergency pursuant to Education Code section 69993.5, including amendment of section and NOTE; operative 12-26-99 (Register 99, No. 53). A Certificate of Compliance must be transmitted to OAL by 4-24-2000 or emergency language will be repealed by operation of law on the following day.
3. Certificate of Compliance as to 12-30-99 order, including new division 4.5 heading, redesignation of former division 4, chapter 1, article 17 to division 4.5, chapter 1, and amendment of section and NOTE, transmitted to OAL 4-21-2000 and filed 6-1-2000 (Register 2000, No. 22).
4. Amendment filed 6-26-2000 as an emergency pursuant to Education Code section 69993.5; operative 7-1-2000 (Register 2000, No. 26). A Certificate of Compliance must be transmitted to OAL by 12-28-2000 or emergency language will be repealed by operation of law on the following day.
5. Amendment of section and NOTE filed 12-26-2000 as an emergency; operative 1-1-2001 (Register 2000, No. 52). A Certificate of Compliance must be transmitted to OAL by 7-2-2001 pursuant to Education Code section 6993.5 or emergency language will be repealed by operation of law on the following day.
6. Certificate of Compliance as to 12-26-2000 order, including further amendment of subsection (b) -- definition of "substantiation" part (10), transmitted to OAL 5-22-2001 and filed 7-5-2001 (Register 2001, No. 27).
7. Amendment of section and NOTE filed 12-18-2001 as an emergency; operative 1-1-2002 (Register 2001, No. 51). Pursuant to Education Code section 69993.5, a Certificate of Compliance must be transmitted to OAL by 7-1-2002 or emergency language will be repealed by operation of law on the following day.
8. Editorial correction of HISTORY 7 (Register 2002, No. 21).
9. Editorial correction of HISTORY 7 (Register 2002, No. 31).
10. Reinstatement of section as it existed prior to 12-18-2001 emergency amendment by operation of Government Code section 11346.1(f) (Register 2002, No. 31).
11. Amendment of section and NOTE filed 7-31-2002 as an emergency; operative 7-31-2002 (Register 2002, No. 31). A Certificate of Compliance must be transmitted to OAL by 12-2-2002 or emergency language will be repealed by operation of law on the following day.
12. Certificate of Compliance as to 7-31-2002 order transmitted to OAL 11-13-2002 and filed 12-5-2002 (Register 2002, No. 49).
13. Amendment of subsection (b) filed 12-1-2003; operative 1-1-2004 (Register 2003, No. 49).
14. Amendment of subsection (a), new definitions of "Act" and "Program administrator" within subsection (b), amendment of definitions of "Legal representative of account owner" and "Substantiation" (part 10) within subsection (b) and amendment of NOTE filed 7-20-2016; operative 10-1-2016 (Register 2016, No. 30).

Note: Authority cited: Sections 69981(e) and 69982(h), Education Code. Reference: Sections 69980, 69983(a), (e) and (h), Education Code; Section 24306(c)(A), Revenue and Taxation Code; Sections 3900- 3925, Probate Code; and Sections 117(b), 152(a), 501(c)(3) and 529(b) and (c), Internal Revenue Code.

1. New article 17 (sections 30950-30957) and section filed 6-3-99 as an emergency pursuant to Education Code 69993.5; operative 6-28-99 (Register 99, No. 23). A Certificate of Compliance must be transmitted to OAL by 2-23-2000 or emergency language will be repealed by operation of law on the following day.
2. New article 17 (sections 30950-30958) and section refiled 12-30-99 as an emergency pursuant to Education Code section 69993.5, including amendment of section and Note; operative 12-26-99 (Register 99, No. 53). A Certificate of Compliance must be transmitted to OAL by 4-24-2000 or emergency language will be repealed by operation of law on the following day.
3. Certificate of Compliance as to 12-30-99 order, including new division 4.5 heading, redesignation of former division 4, chapter 1, article 17 to division 4.5, chapter 1, and amendment of section and Note, transmitted to OAL 4-21-2000 and filed 6-1-2000 (Register 2000, No. 22).
4. Amendment filed 6-26-2000 as an emergency pursuant to Education Code section 69993.5; operative 7-1-2000 (Register 2000, No. 26). A Certificate of Compliance must be transmitted to OAL by 12-28-2000 or emergency language will be repealed by operation of law on the following day.
5. Amendment of section and Note filed 12-26-2000 as an emergency; operative 1-1-2001 (Register 2000, No. 52). A Certificate of Compliance must be transmitted to OAL by 7-2-2001 pursuant to Education Code section 6993.5 or emergency language will be repealed by operation of law on the following day.
6. Certificate of Compliance as to 12-26-2000 order, including further amendment of subsection (b) - definition of "substantiation" part (10), transmitted to OAL 5-22-2001 and filed 7-5-2001 (Register 2001, No. 27).
7. Amendment of section and Note filed 12-18-2001 as an emergency; operative 1-1-2002 (Register 2001, No. 51). Pursuant to Education Code section 69993.5, a Certificate of Compliance must be transmitted to OAL by 7-1-2002 or emergency language will be repealed by operation of law on the following day.
8. Editorial correction of History 7 (Register 2002, No. 21).
9. Editorial correction of History 7 (Register 2002, No. 31).
10. Reinstatement of section as it existed prior to 12-18-2001 emergency amendment by operation of Government Code section 11346.1(f) (Register 2002, No. 31).
11. Amendment of section and Note filed 7-31-2002 as an emergency; operative 7-31-2002 (Register 2002, No. 31). A Certificate of Compliance must be transmitted to OAL by 12-2-2002 or emergency language will be repealed by operation of law on the following day.
12. Certificate of Compliance as to 7-31-2002 order transmitted to OAL 11-13-2002 and filed 12-5-2002 (Register 2002, No. 49).
13. Amendment of subsection (b) filed 12-1-2003; operative 1-1-2004 (Register 2003, No. 49).
14. Amendment of subsection (a), new definitions of "Act" and "Program administrator" within subsection (b), amendment of definitions of "Legal representative of account owner" and "Substantiation" (part 10) within subsection (b) and amendment of Note filed 7-20-2016; operative 10/1/2016 (Register 2016, No. 30).