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Chapter 1. Golden State Scholarshare Trust Program Opening Accounts   

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(a) Individual Account Owner. Any individual who has either reached the age of majority or who is an emancipated minor and who has provided the program administrator's designee with a certified court decree of emancipation and who meets other federal and state legal requirements governing the program, shall be eligible to establish an account.

(b) Other Account Owners. A trust, estate, partnership, association, company or corporation, a custodian under the California Uniform Transfers to Minors Act, or a state or local government agency which meets the federal and state legal requirements governing the program shall be eligible to establish an account.

(c) Participation Agreement. An eligible account owner must submit a completed and signed participation agreement with either an initial contribution or a selection of electronic funds transfer, automatic contribution plan, payroll deduction (if available), or rollover distribution (if available) as the method of initial contribution to the program administrator's designee.

(d) Participation Agreement Submitted By Entity Account Owner. In satisfying the requirements of paragraph (c) of this Section, an entity account owner must attach to the completed application portion of the participation agreement substantiation as to: (1) the legal status of the entity; (2) authorization by the entity to open the account; and (3) the authority of the signer to open the account and conduct transactions in the account.

(e) Number of Account Owners and Beneficiaries Per Account. Only one account owner and one designated beneficiary is permitted per account, except that state and local government agencies and entities described in Section 501(c)(3) of the Internal Revenue Code that are opening the account as part of a scholarship program can open a qualified scholarship account for the benefit of designated beneficiaries to be named when the scholarships are awarded. An account owner may be an account owner for more than one account provided the designated beneficiary of each account is different. An individual may be the designated beneficiary on more than one account provided the account owner of each account is different.

(f) Cancelling Participation Agreements. Any account owner may cancel a participation agreement at will by submitting written notification to the program administrator's designee. A participation agreement is deemed cancelled when the account owner requests a non-qualified distribution to remove all funds from the account so that the balance in the account is reduced to zero.

Authority cited:

Education Code 69981(c)(7) and (d)

Education Code 69982(h)

Reference:

Education Code 69985

Education Code 69986

Education Code 69990(a)

Internal Revenue Code 501(c)(3)

Internal Revenue Code 529(b)(4)

(Amended By Register 2002, No. 49)