W. Va. Code R. § 112-20-3

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 112-20-3 - The Jumpstart Savings Program Trust; securities laws; taxation

3.1. The Jumpstart Savings Program Trust is a public instrumentality of the State of West Virginia. All interests issued by said trust shall constitute interests in the trust and shall be made available to eligible members of the public. For securities law purposes, an interest in the Jumpstart Savings Program Trust, other than an interest in an FDIC-insured account, is a municipal fund security.

3.2. The board shall take any action necessary to administer the program in a manner that allows the trust to qualify and remain qualified for relevant federal securities law exemptions for public instrumentalities of a state.

3.3. The board shall take any action necessary to administer the program in a manner that allows the trust to be exempt and remain exempt from registration under the securities laws of the West Virginia Code, including Chapter 32, the "Uniform Securities Act," and any other West Virginia securities laws existing now or in the future.

3.4. The board shall file all tax returns on behalf of the trust required by federal or state law, if any. To the extent permitted by law, the board shall claim any tax deductions available to the board to avoid double taxation of any trust fund earnings and recapture taxes paid on behalf of the trust on earnings later distributed to trust beneficiaries. The board shall file any information returns with regard to account owners as may be required by federal or state law.

3.5. The board may adopt any reinvestment strategy, if applicable, permitted by state and federal law that is necessary to minimize the tax liability, if any, of the trust fund and account owners.

W. Va. Code R. § 112-20-3