Cal. Code Regs. tit. 5 § 30951

Current through Register 2024 Notice Reg. No. 25, June 21, 2024

Section 30951 - Opening Accounts

(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 or its 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 or its 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 or its 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.

Cal. Code Regs. Tit. 5, § 30951

1. New 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 section refiled 12-30-99 as an emergency pursuant to Education Code section 69993.5, including amendment of subsection (b); 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 transmitted to OAL 4-21-2000 and filed 6-1-2000 (Register 2000, No. 22).
4. Amendment of section heading, 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.
5. Certificate of Compliance as to 12-26-2000 order transmitted to OAL 5-22-2001 and filed 7-5-2001 (Register 2001, No. 27).
6. 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.
7. Editorial correction of HISTORY 6 (Register 2002, No. 21).
8. Editorial correction of HISTORY 6 (Register 2002, No. 31).
9. 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).
10. 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.
11. Certificate of Compliance as to 7-31-2002 order transmitted to OAL 11-13-2002 and filed 12-5-2002 (Register 2002, No. 49).
12. Amendment of subsections (a), (c) and (f) filed 7-20-2016; operative 10-1-2016 (Register 2016, No. 30).

Note: Authority cited: Sections 69981(c)(7) and (d) and 69982(h), Education Code. Reference: Sections 69985, 69986 and 69990(a), Education Code; and Sections 501(c)(3) and 529(b)(4), Internal Revenue Code.

1. New 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 section refiled 12-30-99 as an emergency pursuant to Education Code section 69993.5, including amendment of subsection (b); 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 transmitted to OAL 4-21-2000 and filed 6-1-2000 (Register 2000, No. 22).
4. Amendment of section heading, 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.
5. Certificate of Compliance as to 12-26-2000 order transmitted to OAL 5-22-2001 and filed 7-5-2001 (Register 2001, No. 27).
6. 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.
7. Editorial correction of History 6 (Register 2002, No. 21).
8. Editorial correction of History 6 (Register 2002, No. 31).
9. 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).
10. 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.
11. Certificate of Compliance as to 7-31-2002 order transmitted to OAL 11-13-2002 and filed 12-5-2002 (Register 2002, No. 49).
12. Amendment of subsections (a), (c) and (f) filed 7-20-2016; operative 10/1/2016 (Register 2016, No. 30).