A.(1) Unless otherwise provided for in the agreement, an education savings account owner’s agreement may be terminated by the person entering into the agreement, the beneficiary, or by any person or combination of persons designated in the agreement as provided in this Section.

            (2) An education savings account owner’s agreement may be terminated under any of the following circumstances:

            (a) Upon the death of the beneficiary.

            (b) Upon notification to the authority in writing that the beneficiary has decided not to attend an elementary or secondary school that charges tuition and requests that the education savings account be terminated.

            (c) Upon completion of the requirements for a diploma or other affirmation of program completion at an elementary or secondary school.

            (d) Upon the occurrence of other circumstances determined by the authority to be grounds for termination.

            B.(1) The authority shall determine the method and schedule for payment of refunds upon termination of an education savings account.

            (2) The amount of the refund to which the person designated in the account owner’s agreement is entitled shall be equal to the following:

            (a) The actual amount of the deposits or the current value of the deposits, whichever is less, if the account has been open for less than twelve months.

            (b) The redemption value of the education savings account invested in fixed earnings at the time of the refund and interest earned thereon, previously credited but not expended from the account, if the account has been open for twelve or more months.

            (c) The value of the education savings account invested in variable earnings at the time of the refund and interest earned thereon previously credited but not expended from the account, if the account has been open for twelve or more months.

            (3) Monies in accounts opened by juridical persons or classified under La. Rev. Stat. 17:3100.6(A)(1)(e) may not be refunded; however, the account owner or the authority, if the account owner has authorized the authority to designate the beneficiary, may designate a new beneficiary:

            (a) Upon the death of the beneficiary.

            (b) If the beneficiary has decided not to attend an elementary or secondary school that charges tuition.

            (c) Upon the beneficiary’s completion of the requirements for a diploma or other affirmation of program completion at an elementary or secondary school.

            C. If the beneficiary is the recipient of a scholarship, waiver of tuition, or similar subvention that the authority determines cannot be converted into money by the beneficiary, the authority shall, during each academic term that the beneficiary furnishes the authority such information about the scholarship, waiver, or similar subvention as the authority requires, refund to the person designated in the owner’s agreement an amount from the owner’s education savings account equal to the value of the scholarship, waiver, or similar subvention awarded to the beneficiary. The authority may, at its sole option, designate the school at which the beneficiary is enrolled as the agent of the authority for purposes of refunds pursuant to this Subsection.

            D. If, in any academic term for which withdrawals from the education savings account have been used to pay all or part of a beneficiary’s qualified education expenses, the beneficiary withdraws from the school at which the beneficiary is enrolled prior to the end of the academic term, a pro rata share of any refund of the qualified education expenses resulting from the beneficiary’s withdrawal from the school, equal to that portion of the qualified education expenses paid by disbursements from the education savings account, shall be made to the authority, unless the authority designates a different procedure. The authority shall credit any refund to the appropriate education savings account.

            E. An account owner may transfer or roll over any amount from an education savings account created pursuant to Chapter 22-A of this Title to an education savings account created pursuant to this Chapter without penalty.

            Acts 2018, No. 687, §2, eff. May 30, 2018; Acts 2022, No. 742, §1.