53B-8a-103.  Creation of Utah Educational Savings Plan — Powers and duties of plan — Certain exemptions.

(1)  There is created the Utah Educational Savings Plan, which may also be known and do business as:

Terms Used In Utah Code 53B-8a-103

  • Administrative fund: means the money used to administer the Utah Educational Savings Plan. See Utah Code 53B-8a-102.5
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Board: means the board of directors of the Utah Educational Savings Plan, which is the Utah Board of Higher Education acting in the Utah Board of Higher Education's capacity as the Utah Higher Education Assistance Authority under Title 53B, Chapter 12, Higher Education Assistance Authority. See Utah Code 53B-8a-102.5
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Endowment fund: means the endowment fund established under Section 53B-8a-107, which is held as a separate fund within the Utah Educational Savings Plan. See Utah Code 53B-8a-102.5
  • Fiduciary: A trustee, executor, or administrator.
  • Higher education costs: means qualified higher education expenses as defined in Section 529(e)(3), Internal Revenue Code. See Utah Code 53B-8a-102.5
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Person: means :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
  • Program fund: means the program fund created under Section 53B-8a-107, which is held as a separate fund within the Utah Educational Savings Plan. See Utah Code 53B-8a-102.5
  • Property: includes both real and personal property. See Utah Code 68-3-12.5
  • 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
(a)  the Utah Educational Savings Plan Trust; or

(b)  another related name.

(2)  The plan:

(a)  is a non-profit, self-supporting agency that administers a public trust;

(b)  shall administer the various programs, funds, trusts, plans, functions, duties, and obligations assigned to the plan:

(i)  consistent with sound fiduciary principles; and

(ii)  subject to review of the board; and

(c)  shall be known as and managed as a qualified tuition program in compliance with Section 529, Internal Revenue Code, that is sponsored by the state.

(3)  The plan may:

(a)  make and enter into contracts necessary for the administration of the plan payable from plan money, including:

(i)  contracts for goods and services; and

(ii)  contracts to engage personnel, with demonstrated ability or expertise, including consultants, actuaries, managers, counsel, and auditors for the purpose of rendering professional, managerial, and technical assistance and advice;

(b)  adopt a corporate seal and change and amend the corporate seal;

(c)  invest money within the program, administrative, and endowment funds in accordance with the provisions under Section 53B-8a-107;

(d)  enter into agreements with account owners, any institution of higher education, any federal or state agency, or other entity as required to implement this chapter;

(e)  solicit and accept any grants, gifts, legislative appropriations, and other money from the state, any unit of federal, state, or local government, or any other person, firm, partnership, or corporation for deposit to the administrative fund, endowment fund, or the program fund;

(f)  make provision for the payment of costs of administration and operation of the plan;

(g)  carry out studies and projections to advise account owners regarding:

(i)  present and estimated future higher education costs; and

(ii)  levels of financial participation in the plan required to enable account owners to achieve their educational funding objective;

(h)  participate in federal, state, local governmental, or private programs;

(i)  create public and private partnerships, including investment or management relationships with other 529 plans or entities;

(j)  promulgate, impose, and collect administrative fees and charges in connection with transactions of the plan, and provide for reasonable service charges;

(k)  procure insurance:

(i)  against any loss in connection with the property, assets, or activities of the plan; and

(ii)  indemnifying any member of the board from personal loss or accountability arising from liability resulting from a member’s action or inaction as a member of the plan’s board;

(l)  administer outreach efforts to:

(i)  market and publicize the plan and the plan’s products to existing and prospective account owners; and

(ii)  encourage economically challenged populations to save for post-secondary education;

(m)  adopt, trademark, and copyright names and materials for use in marketing and publicizing the plan and the plan’s products;

(n)  administer the funds of the plan;

(o)  sue and be sued in the plan’s own name;

(p)  own institutional accounts in the plan to establish and administer:

(i)  scholarship programs; or

(ii)  other college savings incentive programs, including programs designed to enhance the savings of low income account owners investing in the plan; and

(q)  have and exercise any other powers or duties that are necessary or appropriate to carry out and effectuate the purposes of this chapter.

(4) 

(a)  Except as provided in Subsection (4)(b), the plan is exempt from the provisions of Title 63G, Chapter 2, Government Records Access and Management Act.

(b) 

(i)  The annual audited financial statements of the plan described in Section 53B-8a-111 are public records.

(ii)  Financial information that is provided by the plan to the state auditor and posted on the public finance website established by the state auditor in accordance with Section 67-3-12 is a public record.

(5)  The plan is subject to:

(a)  Title 52, Chapter 4, Open and Public Meetings Act; and

(b)  Title 63G, Chapter 6a, Utah Procurement Code.

Amended by Chapter 84, 2021 General Session

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