[Rev. 11/21/2013 4:07:31 PM--2013]

[NAC-353B Revised Date: 7-11]

CHAPTER 353B - COLLEGE SAVINGS PLANS OF NEVADA

GENERAL PROVISIONS

353B.005         “Board” defined.

NEVADA HIGHER EDUCATION PREPAID TUITION PROGRAM

General Provisions

353B.010         Definitions.

353B.020         “Contract” defined.

353B.030         “Contractual plan” defined.

353B.040         “Date of matriculation” defined.

353B.050         “Eligible educational institution” defined.

353B.055         “Master agreement” defined.

353B.060         “Program” defined.

353B.069         “State college” defined.

353B.070         “State community college” defined.

353B.080         “State university” defined.

353B.090         “Tuition” defined.

Enrollment in Program; Administration; Benefits

353B.140         Development of master agreement by Board; review and amendment.

353B.150         Contract provisions: Payment of tuition to institution of higher education for certain number of semester hours of credit..

353B.160         Contract provisions: Restrictions on payment of tuition and other amounts charged for enrollment; payment of tuition for person designated as qualified beneficiary on more than one contract.

353B.170         Eligibility to be purchaser or qualified beneficiary.

353B.180         Application: Contents; fee; late application; copy of contract and master agreement.

353B.190         Designation of legal successor of applicant or purchaser.

353B.200         Board to establish and give public notice of dates for enrollment and of certain rates.

353B.205         Provision of benefits: Annual determination of amount; formula for conversion to semester credit hours; payment directly to eligible educational institution.

353B.210         Provision of benefits: Restrictions; termination of contract and refund.

353B.220         Provision of benefits: Accrual of benefits if tuition rate is less than amount of benefit payment; refund.

Amendment of Contracts

353B.300         Conditions for change in contractual plan.

353B.310         Conditions for change in designation of qualified beneficiary.

Remittance of Payments

353B.350         Options for method of payment by purchaser.

353B.360         Payment of remaining balance in lump sum.

353B.370         Remittance of payment pursuant to contract; consequences for failure to remit.

Termination of Contracts; Refunds

353B.400         Failure to provide information requested by Board.

353B.410         Fraudulent misrepresentation or omission of information.

353B.420         Death of purchaser.

353B.430         Death or disability of qualified beneficiary.

353B.440         Award of scholarship to qualified beneficiary that duplicates benefits to be provided under contract.

353B.450         Request by purchaser to terminate contract.

Fees and Penalties

353B.500         Fees.

353B.510         Penalties for insufficient funds, delinquent payment or termination of contract.

NEVADA COLLEGE SAVINGS PROGRAM

General Provisions

353B.550         Definitions.

353B.555         “Account owner” defined.

353B.560         “Business day” defined.

353B.565         “Designated beneficiary” defined.

353B.570         “Member of the family” defined.

353B.575         “Participation agreement” defined.

353B.580         “Person” defined.

353B.582         “Plan” defined.

353B.583         “Plan Investment Manager” defined.

353B.585         “Program” defined.

353B.590         “Program Manager” defined.

353B.595         “Qualified higher education expenses” defined.

Administration of Accounts

353B.600         Eligibility to be account owner or designated beneficiary.

353B.605         Designation of successor account owner; change of ownership of account.

353B.610         Change of designated beneficiary.

353B.615         Opening of account; selection of investment option; reassignment of accounts under age-based investment option.

353B.620         Conditions under which Plan Investment Manager may refuse to open account.

353B.625         Participation agreement: Execution.

353B.630         Participation agreement: Required provisions.

353B.635         Maintenance of separate records and accounting for each account; annual reports to account owners.

353B.640         Prohibition on use of interest as security for loan.

Contributions to Accounts

353B.645         Authority to make contributions; minimum amounts; refusal of certain contributions.

353B.650         Form of contributions.

353B.655         Limitation on contributions; maximum aggregate balance for designated beneficiary; return of excess contributions.

353B.660         Rollover distributions from qualified tuition program of another state.

Distributions From and Termination of Accounts

353B.665         Distributions: Procedure; classification; restriction.

353B.670         Distributions: Required notification.

353B.675         Qualified withdrawals.

353B.680         Refund of all or part of qualified distribution.

353B.690         Rollover distributions to account in qualified tuition program of another state or to another account in Program; return of excess money.

353B.695         Termination: Conditions; notice; nonqualified distribution; qualified distribution.

Fees

353B.700         Fees to support continued operation of Program.

353B.705         Other fees.

Miscellaneous Provisions

353B.710         Accounting and expenditure if money provided by private entities for direct expenses and marketing.

353B.715         Review and modification of investment policies by Board.

353B.720         Prohibition on contributor or designated beneficiary to direct investments of Program; exception.

353B.725         Effect of joint decisions and interpretations by Board and Program Manager; claims and appeals by account owners; determination of Board on appeal.

 

 

 

GENERAL PROVISIONS

      NAC 353B.005  “Board” defined. (NRS 353B.090)  As used in this chapter, unless the context otherwise requires, “Board” has the meaning ascribed to it in NRS 353B.002.

     (Added to NAC by Bd. of Trustees of College Savings Plans of Nev. by R150-03, eff. 8-25-2004)

NEVADA HIGHER EDUCATION PREPAID TUITION PROGRAM

General Provisions

      NAC 353B.010  Definitions. (NRS 353B.090)  As used in NAC 353B.010 to 353B.510, inclusive, unless the context otherwise requires, the words and terms defined in NRS 353B.030 to 353B.070, inclusive, and NAC 353B.020 to 353B.090, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R150-03, 8-25-2004; R055-09, 10-27-2009)

      NAC 353B.020  “Contract” defined. (NRS 353B.090)  “Contract” means a prepaid tuition contract, consisting of the provisions of an application for enrollment in the Program and a schedule for participation and payment provided by the Board.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R055-09, 10-27-2009)

      NAC 353B.030  “Contractual plan” defined. (NRS 353B.090)  “Contractual plan” means an option set forth in NAC 353B.150.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99)

      NAC 353B.040  “Date of matriculation” defined. (NRS 353B.090)  “Date of matriculation” means the year that a qualified beneficiary commences his or her attendance at a postsecondary educational institution.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R055-09, 10-27-2009)

      NAC 353B.050  “Eligible educational institution” defined. (NRS 353B.090, 353B.100)  “Eligible educational institution” means a school described in paragraph (g) of subsection 3 of NRS 353B.100. For the purposes of that paragraph, the Board will construe the term “accredited” to mean that a school has been accredited as a postsecondary educational institution by an accrediting body recognized by the United States Department of Education and is eligible to participate in a program for student financial assistance offered by the United States Department of Education.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R055-09, 10-27-2009)

      NAC 353B.055  “Master agreement” defined. (NRS 353B.090)  “Master agreement” means the agreement developed by the Board pursuant to NAC 353B.140.

     (Added to NAC by Bd. of Trustees of College Savings Plans of Nev. by R055-09, eff. 10-27-2009)

      NAC 353B.060  “Program” defined. (NRS 353B.090)  “Program” means the Program for the Prepayment of Tuition established pursuant to NRS 353B.010 to 353B.190, inclusive, and NAC 353B.010 to 353B.510, inclusive.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99)

      NAC 353B.069  “State college” defined. (NRS 353B.090)  “State college” means the Nevada State College.

     (Added to NAC by Bd. of Trustees of College Savings Plans of Nev. by R055-09, eff. 10-27-2009)

      NAC 353B.070  “State community college” defined. (NRS 353B.090)  “State community college” means:

     1.  The College of Southern Nevada;

     2.  Western Nevada College;

     3.  Truckee Meadows Community College; or

     4.  Great Basin College.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R055-09, 10-27-2009)

      NAC 353B.080  “State university” defined. (NRS 353B.090)  “State university” means:

     1.  The University of Nevada, Reno; or

     2.  The University of Nevada, Las Vegas.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99)

      NAC 353B.090  “Tuition” defined. (NRS 353B.090)  “Tuition” means the cost for the enrollment of a full-time student into an eligible educational institution, except for any amounts charged:

     1.  To nonresident students only;

     2.  As fines, application fees, entrance fees, parking fees, technology fees, athletic fees or studio fees, laboratory fees, surcharges or other fees imposed for specific courses, whether or not charged to all students; and

     3.  For books, supplies, room or board, whether or not charged to all students.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R150-03, 8-25-2004; R055-09, 10-27-2009)

Enrollment in Program; Administration; Benefits

      NAC 353B.140  Development of master agreement by Board; review and amendment. (NRS 353B.090)

     1.  The Board will develop a master agreement for the Program. The master agreement must include, without limitation:

     (a) Information concerning the Program;

     (b) The obligations of the Program to a purchaser and a qualified beneficiary;

     (c) The qualifications of a purchaser and a qualified beneficiary;

     (d) The requirements for enrollment in the Program;

     (e) The methods of payment;

     (f) The method for the distribution and payment of benefits;

     (g) An explanation of the operation of the Trust Fund; and

     (h) General provisions, including, without limitation, provisions concerning:

          (1) The termination of a contract or the master agreement;

          (2) Refunds;

          (3) Conversions of a contract;

          (4) Amendments to a contract or the master agreement;

          (5) Arbitration;

          (6) Limited liability;

          (7) The prohibition on the sale of contracts; and

          (8) Any other provisions as determined by the Board.

     2.  The Board will review and amend the master agreement, as necessary. Any amendment to the master agreement will apply to all contracts which are affected by the amendment. The Board will amend a contract, if necessary, based upon an amendment to the master agreement. If a purchaser does not agree to an amendment to the master agreement or the contract, the purchaser may cancel the contract and receive a refund according to the terms of the master agreement.

     (Added to NAC by Bd. of Trustees of College Savings Plans of Nev. by R055-09, eff. 10-27-2009)

      NAC 353B.150  Contract provisions: Payment of tuition to institution of higher education for certain number of semester hours of credit. (NRS 353B.090, 353B.100)

     1.  A contract may provide for payment from the Trust Fund of the amount of tuition required for the enrollment of a qualified beneficiary into:

     (a) A state community college in sufficient classes for a student to earn 60 semester hours of credit;

     (b) A state:

          (1) Community college in sufficient classes for a student to earn 60 semester hours of credit; and

          (2) University in sufficient classes for a student to earn 60 semester hours of credit; or

     (c) A state university in sufficient classes for a student:

          (1) To earn 30 semester hours of credit;

          (2) To earn 60 semester hours of credit; or

          (3) To earn 120 semester hours of credit.

     2.  As used in this section, “classes” means classes pursuant to which a student may earn an associate’s degree in 2 years of study or a bachelor’s degree in 4 years of study.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by R079-00, 10-23-2000; A by Bd. of Trustees of College Savings Plans of Nev. by R055-09, 10-27-2009)

      NAC 353B.160  Contract provisions: Restrictions on payment of tuition and other amounts charged for enrollment; payment of tuition for person designated as qualified beneficiary on more than one contract. (NRS 353B.090, 353B.100)

     1.  Except as otherwise provided in subsection 2, a contract may not authorize the payment of:

     (a) Tuition for:

          (1) More than one qualified beneficiary; or

          (2) A person who is designated as a qualified beneficiary for another contract; or

     (b) Except for the amount of tuition authorized pursuant to NAC 353B.150, any other amounts charged for the enrollment of a qualified beneficiary into an eligible educational institution.

     2.  More than one contract may authorize the payment of tuition for a person who is designated as a qualified beneficiary for the contracts if the contracts are in the amount of tuition described in subparagraphs (1) and (2) of paragraph (c) of subsection 1 of NAC 353B.150.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by R079-00, 10-23-2000; A by Bd. of Trustees of College Savings Plans of Nev. by R055-09, 10-27-2009)

 

      NAC 353B.170  Eligibility to be purchaser or qualified beneficiary. (NRS 353B.090)

     1.  A purchaser may be any person or legal entity other than the qualified beneficiary designated for the contract.

     2.  At the time of enrollment in the Program, a qualified beneficiary must not yet have:

     (a) Completed the ninth grade of school; or

     (b) Attained the age of 18 years.

     3.  The purchaser or the qualified beneficiary must be a resident of this State at the time of enrollment in the Program, or the purchaser must hold a degree or certificate from a state university, state college or state community college.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R055-09, 10-27-2009)

      NAC 353B.180  Application: Contents; fee; late application; copy of contract and master agreement. (NRS 353B.090)

     1.  A person who desires to enter into a contract must submit to the Board an application for enrollment in the Program, on a form provided by the Board, and a fee of $100 for processing the application. The application must include:

     (a) The expected date of matriculation of the qualified beneficiary;

     (b) The desired contractual plan; and

     (c) Any other relevant information requested by the Board.

     2.  The Board may accept an application for enrollment in the Program which is received after the appropriate dates for enrollment established pursuant to NAC 353B.200, but not later than 60 days before the dates established pursuant to that section for enrollment during the next year, if the purchaser pays, in addition to the fee for processing the application:

     (a) The amount the Board determines would have been due if the application had been submitted on an appropriate date; and

     (b) Any additional sum the Board determines to be necessary to ensure the actuarial soundness of the Trust Fund.

     3.  After processing an application for enrollment in the Program, the Board will send a copy of the contract and the master agreement to the purchaser.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R150-03, 8-25-2004; R055-09, 10-27-2009)

      NAC 353B.190  Designation of legal successor of applicant or purchaser. (NRS 353B.090)  An applicant for enrollment in the Program or a purchaser may submit to the Board a written designation of a person to serve as the legal successor of the applicant or purchaser for the purposes of the contract in the event that the applicant or purchaser dies before the contract is discharged. A person so designated:

     1.  Must not be the qualified beneficiary for the contract; and

     2.  May request and receive from the Board any information regarding the contract, but may exercise no other rights regarding the contract during the lifetime of the purchaser.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R055-09, 10-27-2009)

      NAC 353B.200  Board to establish and give public notice of dates for enrollment and of certain rates. (NRS 353B.090, 353B.100)  The Board will annually:

     1.  Establish:

     (a) Guaranteed rates for the prepayment of tuition pursuant to a contract;

     (b) Specific dates for enrollment in the Program;

     (c) A rate of interest for the provision of any refunds pursuant to NAC 353B.010 to 353B.510, inclusive, of payments received during the immediately preceding year, which must be based upon the net return on the investment of money in the Trust Fund during that year;

     (d) For the purpose of imposing a penalty pursuant to paragraph (c) of subsection 2 of NAC 353B.510, the estimated rate of return on investments in the Trust Fund; and

     (e) A rate of discount for the payment of the remaining balance of a contract in a lump sum pursuant to NAC 353B.360; and

     2.  Provide public notice of those rates and dates, either separately or together, by posting a copy of the notice at the principal office of the Board and at not less than three other separate, prominent places within this State.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R055-09, 10-27-2009)

      NAC 353B.205  Provision of benefits: Annual determination of amount; formula for conversion to semester credit hours; payment directly to eligible educational institution. (NRS 353B.090)

     1.  The Board will annually determine the amount of benefits to be paid to an eligible educational institution for a qualified beneficiary pursuant to a contract based upon the tuition charged per semester credit hour at the state universities, state colleges and state community colleges.

     2.  If an eligible educational institution charges students using a method other than semester credit hours, the Board will convert that method into semester credit hours to determine the number of semester credit hours that are eligible for the payment of benefits under the contract in the following manner:

     (a) For an institution that enrolls students in a semester or tri-semester program based upon clock hours, by dividing the total clock hours in the program by 30.

     (b) For an institution that enrolls students in a quarter-hour program based upon clock hours, by dividing the total number of clock hours in the program by 20.

     3.  The payment of benefits pursuant to the contract must be remitted directly to the eligible educational institution in which the qualified beneficiary is enrolled.

     (Added to NAC by Bd. of Trustees of College Savings Plans of Nev. by R055-09, eff. 10-27-2009)

      NAC 353B.210  Provision of benefits: Restrictions; termination of contract and refund. (NRS 353B.090)

     1.  The Board will not provide any benefits pursuant to a contract:

     (a) Earlier than 3 years after the date the first payment is due from the purchaser pursuant to the contract.

     (b) Until:

          (1) The purchaser has paid the entire amount due pursuant to the contract, including any outstanding fees and penalties; and

          (2) The Board has received:

               (I) The social security number of the qualified beneficiary;

               (II) If the qualified beneficiary enrolls in an eligible educational institution that is not a member of the System, at least 60 days’ notice of that enrollment; and

               (III) Any other information relating to the contract requested by the Board.

     (c) Earlier than the expected date of matriculation of the qualified beneficiary, as specified pursuant to NAC 353B.180 or 353B.310, except that the Board may allow the commencement of those benefits not more than 2 years before that date if the qualified beneficiary is a senior in high school and enrolls into an eligible educational institution before that date.

     (d) Later than 6 years, excluding any period during which the qualified beneficiary is on active duty in the Armed Services of the United States or has been actively serving or participating in a charitable, religious or public service assignment or mission, after the expected date of matriculation of the qualified beneficiary, as specified pursuant to NAC 353B.180 or 353B.310.

 

     (e) If the provision of benefits does not commence before the qualified beneficiary attains the age of 30 years plus any period during which the qualified beneficiary was on active duty in the Armed Services of the United States or has been actively serving or participating in a charitable, religious or public service assignment or mission.

     2.  If any benefits cannot be provided pursuant to a contract as a result of the provisions of paragraph (d) or (e) of subsection 1, the Board may terminate the contract and provide to the purchaser a refund according to the terms of the master agreement.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R150-03, 8-25-2004; R055-09, 10-27-2009)

      NAC 353B.220  Provision of benefits: Accrual of benefits if tuition rate is less than amount of benefit payment; refund. (NRS 353B.090)  If a qualified beneficiary enrolls in an eligible educational institution that charges tuition at a rate that is less than the amount of the benefit payment determined by the Board pursuant to NAC 353B.205, the Board will remit to the eligible educational institution the actual amount of tuition charged to that qualified beneficiary and accrue any remaining benefit amount. The Board will provide a refund to the purchaser for any such accrued benefits according to the terms of the master agreement.

     (Added to NAC by Bd. of Trustees of College Savings Plans of Nev. by R055-09, eff. 10-27-2009)

Amendment of Contracts

      NAC 353B.300  Conditions for change in contractual plan. (NRS 353B.090)  The Board will amend a contract to change the contractual plan if:

     1.  The purchaser requests the change, submits the required fee and pays any additional sum the Board determines to be necessary, as a result of the change, to ensure the actuarial soundness of the Trust Fund;

     2.  No benefits have been paid pursuant to the contract;

     3.  The purchaser is not in default pursuant to NAC 353B.370; and

     4.  The contract has not been terminated.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99)

      NAC 353B.310  Conditions for change in designation of qualified beneficiary. (NRS 353B.090)  The Board will amend a contract to change the designation of the qualified beneficiary to a person within the immediate family of the existing qualified beneficiary if:

     1.  The purchaser requests the change and submits to the Board:

     (a) The required fee;

     (b) The name and date of birth of the proposed qualified beneficiary;

     (c) The expected date of matriculation of the proposed qualified beneficiary; and

     (d) Any other relevant information requested by the Board;

     2.  Either:

     (a) The age of the proposed qualified beneficiary is less than the age of the existing qualified beneficiary plus 3 years; or

     (b) The purchaser pays any additional sum the Board determines to be necessary, as a result of the change, to ensure the actuarial soundness of the Trust Fund;

     3.  No benefits have been paid pursuant to the contract;

     4.  The purchaser is not in default pursuant to NAC 353B.370; and

     5.  The contract has not been terminated.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99)

 

Remittance of Payments

      NAC 353B.350  Options for method of payment by purchaser. (NRS 353B.090, 353B.100)  A contract may provide for payment by the purchaser:

     1.  By:

     (a) Remittance in a lump sum; or

     (b) Remittances on a monthly basis:

          (1) For 60 months; or

          (2) From the time of enrollment in the Program until the qualified beneficiary graduates from high school; and

     2.  Pursuant to:

     (a) An invoice;

     (b) Monthly coupons;

     (c) Payroll deductions;

     (d) Automatic deductions from a specified account at a financial institution;

     (e) Gifts, under conditions approved by the Board; or

     (f) Any other method approved by the Board.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R055-09, 10-27-2009)

      NAC 353B.360  Payment of remaining balance in lump sum. (NRS 353B.090)  Upon the request of a purchaser and receipt of the required fee, the Board will allow the purchaser to pay in a lump sum the remaining balance, if any, of the total amount due pursuant to a contract that provides for the remittance of payments on a monthly basis, unless:

     1.  The purchaser is in default pursuant to NAC 353B.370; or

     2.  The contract has been terminated.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99)

      NAC 353B.370  Remittance of payment pursuant to contract; consequences for failure to remit. (NRS 353B.090)

     1.  A purchaser must remit payments pursuant to a contract on the dates and in the amounts set forth in the schedule for participation and payment provided to the purchaser by the Board.

     2.  If a purchaser fails to remit:

     (a) A payment required pursuant to a contract within 30 days after the date the payment is due, the purchaser shall be deemed to be in default.

     (b) The first payment required pursuant to a contract within 90 days after the date the payment is due, the Board may terminate the contract.

     (c) All past due payments required pursuant to a contract within 180 days after the date the purchaser is deemed to be in default pursuant to paragraph (a), the Board may terminate the contract and provide to the purchaser a refund according to the terms of the master agreement.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R055-09, 10-27-2009)

Termination of Contracts; Refunds

      NAC 353B.400  Failure to provide information requested by Board. (NRS 353B.090)  If a purchaser fails to provide any information relating to a contract within a reasonable period after receiving a request from the Board for the provision of that information, the Board may terminate the contract and provide to the purchaser a refund according to the terms of the master agreement.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R055-09, 10-27-2009)

      NAC 353B.410  Fraudulent misrepresentation or omission of information. (NRS 353B.090)  If the Board determines that a purchaser has fraudulently misrepresented or omitted any information relating to a contract requested by the Board or otherwise required pursuant to NAC 353B.010 to 353B.510, inclusive, the Board will terminate the contract and provide to the purchaser a refund according to the terms of the master agreement.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R055-09, 10-27-2009)

      NAC 353B.420  Death of purchaser. (NRS 353B.090)  Upon the receipt of a written request signed by a person designated pursuant to NAC 353B.190 or, in the absence of such a designation, by the representative of the estate of the purchaser or the representative of a qualified beneficiary, and such documentation as the Board deems adequate to prove that a purchaser has died, the Board will:

     1.  Terminate the contract and provide to the requester a refund according to the terms of the master agreement;

     2.  If the requester submits the required fee, amend the contract to change the identity of the purchaser; or

     3.  If the purchaser has paid the total amount due on the contract and no legal successor or representative of the estate is identified, automatically transfer the rights and responsibilities of the purchaser to the qualified beneficiary if the qualified beneficiary is not a minor. If the qualified beneficiary is a minor and the Board receives sufficient documentation that a legal guardian may act on behalf of the minor, the Board will transfer the rights and responsibilities of the purchaser to the legal guardian. Upon transfer of the rights and responsibilities to the qualified beneficiary or the legal guardian, as applicable, the Board will act at the direction of the qualified beneficiary or the legal guardian with regard to the contract.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R055-09, 10-27-2009)

      NAC 353B.430  Death or disability of qualified beneficiary. (NRS 353B.090)  Upon the receipt of a written request signed by a purchaser and such documentation as the Board deems adequate to prove that the qualified beneficiary has died or become totally disabled, the Board will:

     1.  Terminate the contract and provide to the purchaser a refund according to the terms of the master agreement; or

     2.  Amend the contract to change the designation of the qualified beneficiary, subject to the provisions of NAC 353B.310.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R150-03, 8-25-2004; R055-09, 10-27-2009)

      NAC 353B.440  Award of scholarship to qualified beneficiary that duplicates benefits to be provided under contract. (NRS 353B.090)

     1.  Upon the receipt of a written request signed by a purchaser and such documentation as the Board deems adequate to prove that the qualified beneficiary has been awarded a scholarship to attend an eligible educational institution which duplicates all the benefits to be provided pursuant to the contract, the Board will:

     (a) Amend the contract to change the identity of the qualified beneficiary and waive the required fee for the change; or

     (b) Terminate the contract and provide to the purchaser a refund according to the terms of the master agreement.

     2.  As used in this section, “scholarship” does not include a loan.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R150-03, 8-25-2004; R055-09, 10-27-2009)

      NAC 353B.450  Request by purchaser to terminate contract. (NRS 353B.090)  Upon the receipt of a written request signed by a purchaser to terminate the contract for any reason other than as provided in NAC 353B.430 and 353B.440, the Board will terminate the contract and provide to the purchaser a refund according to the terms of the master agreement.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R150-03, 8-25-2004; R055-09, 10-27-2009)

Fees and Penalties

      NAC 353B.500  Fees. (NRS 353B.090, 353B.100)  A contract may require the purchaser to pay:

     1.  For a change in:

     (a) The amount, time or method of payment;

     (b) The contractual plan;

     (c) The identity of the purchaser; or

     (d) The designation of the qualified beneficiary,

Ê a fee of $20.

     2.  For the replacement of any lost or destroyed documents, a fee of $7.

     3.  For the payment of tuition to an eligible educational institution other than a state community college, state college or state university, a fee of $25 for the first quarter or semester for which tuition is paid. The fee of $25 must be paid each time a beneficiary transfers to a new eligible educational institution other than a state community college, state college or state university.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R150-03, 8-25-2004; R055-09, 10-27-2009)

      NAC 353B.510  Penalties for insufficient funds, delinquent payment or termination of contract. (NRS 353B.090, 353B.100)

     1.  A contract must require the purchaser to pay a penalty of $25 if a payment is returned for insufficient funds in accordance with NRS 353C.115 and the regulations adopted pursuant thereto.

     2.  A contract may require the purchaser to pay:

     (a) If a monthly remittance is not received within 15 days after the date due, a penalty of $15.

     (b) If a remittance by a lump sum is not received within:

          (1) Fifteen days after the date due, a penalty of $15; and

          (2) Forty-five days after the date due, a penalty of 1 percent of the total amount due, including the amount of all outstanding fees and penalties imposed pursuant to the contract, for each period of 30 days or portion thereof that passes after the period described in subparagraph (1) until:

               (I) The total amount due is paid; or

               (II) The contract is terminated,

Ê whichever occurs earlier.

     (c) In addition to any other penalties imposed, if a monthly remittance or a remittance by lump sum is not received within 90 days after the due date, a penalty which is calculated by multiplying the total amount of payments due by:

          (1) The estimated annual rate of return established by the Board pursuant to NAC 353B.200 for the year in which the total amount is due; or

          (2) Eight percent,

Ê whichever is less.

     (d) If a contract is terminated pursuant to NAC 353B.370, 353B.400, 353B.410 or 353B.450, a penalty of $100.

     (e) If a contract is terminated pursuant to NAC 353B.440, a penalty, if required, to the Internal Revenue Service pursuant to 26 U.S.C. § 529(c)(6) or any other applicable section of the Internal Revenue Code.

     (Added to NAC by Bd. of Trustees for Higher Educ. Tuition Trust Fund by R009-99, eff. 11-3-99; A by Bd. of Trustees of College Savings Plans of Nev. by R150-03, 8-25-2004; R055-09, 10-27-2009)

NEVADA COLLEGE SAVINGS PROGRAM

General Provisions

      NAC 353B.550  Definitions. (NRS 353B.310)  As used in NAC 353B.550 to 353B.725, inclusive, unless the context otherwise requires, the words and terms defined in NAC 353B.555 to 353B.595, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R054-09, 10-27-2009)

      NAC 353B.555  “Account owner” defined. (NRS 353B.310)  “Account owner” means a person who:

     1.  Is legally able to contract under the laws of this State;

     2.  Meets all federal and state requirements governing the Program and a plan; and

     3.  Establishes an account under a plan.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R054-09, 10-27-2009)

      NAC 353B.560  “Business day” defined. (NRS 353B.310)  “Business day” means any weekday on which the New York Stock Exchange is open.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R054-09, 10-27-2009)

      NAC 353B.565  “Designated beneficiary” defined. (NRS 353B.310)  “Designated beneficiary” has the meaning ascribed to it in 26 U.S.C. § 529.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002)

      NAC 353B.570  “Member of the family” defined. (NRS 353B.310)  “Member of the family” has the meaning ascribed to it in 26 U.S.C. § 529.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002)

      NAC 353B.575  “Participation agreement” defined. (NRS 353B.310)  “Participation agreement” means a participant agreement and an account application executed by an account owner which:

     1.  Sets forth the terms and conditions governing an account; and

     2.  Is in the form approved by the State Treasurer.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R041-03, 10-29-2003)

      NAC 353B.580  “Person” defined. (NRS 353B.310)  “Person” has the meaning ascribed to it in 26 U.S.C. § 7701(a).

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002)

      NAC 353B.582  “Plan” defined. (NRS 353B.310)  “Plan” means an investment plan that is approved by the Board for inclusion in the Program which is promoted by a private entity and is offered for sale under the management of the Program Manager or through a contract between the Program Manager and a Plan Investment Manager.

     (Added by NAC by St. Treasurer by R054-09, eff. 10-27-2009)

      NAC 353B.583  “Plan Investment Manager” defined. (NRS 353B.310)  “Plan Investment Manager” means a private entity that has contracted with the Program Manager and is approved by the Board to offer plans, to invest accounts opened under a plan and to manage plans within the Program.

     (Added to NAC by St. Treasurer by R054-09, eff. 10-27-2009)

      NAC 353B.585  “Program” defined. (NRS 353B.310)  “Program” means the Nevada College Savings Program, which is a qualified tuition program pursuant to 26 U.S.C. § 529 that may be marketed as “Nevada’s College Savings Plan” or under any other name.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R041-03, 10-29-2003; R054-09, 10-27-2009)

      NAC 353B.590  “Program Manager” defined. (NRS 353B.310)  “Program Manager” means the private entity that has contracted with the Board to serve as the administrator, marketing agent and investment manager of the Program.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002)

      NAC 353B.595  “Qualified higher education expenses” defined. (NRS 353B.310)  “Qualified higher education expenses” has the meaning ascribed to it in 26 U.S.C. § 529.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002)

Administration of Accounts

      NAC 353B.600  Eligibility to be account owner or designated beneficiary. (NRS 353B.310)

     1.  There are no restrictions on the age of a designated beneficiary or any required relationship between an account owner and the designated beneficiary of the account.

     2.  There may be only one account owner and one designated beneficiary for an account at any time.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R041-03, 10-29-2003)

      NAC 353B.605  Designation of successor account owner; change of ownership of account. (NRS 353B.310)

     1.  An account owner may designate a successor account owner who becomes the new account owner automatically upon the death of the designating account owner. An account owner, in the account application or at any other time, may make such a designation by submitting to the Plan Investment Manager a written designation of a successor account owner containing the information required by the Plan Investment Manager. A designation of a successor account owner is not effective until received by the Plan Investment Manager and recorded in the records of the Plan Investment Manager.

     2.  If a change in the ownership of an account is required by a court order directing the change of ownership, or by an affidavit or declaration that is recognized under applicable law as requiring the transfer of ownership upon death without a court order, the change of ownership of the account, except as otherwise required by law, is not effective until the Plan Investment Manager receives the court order, affidavit or declaration requiring the change and the change of ownership is recorded in the records of the Plan Investment Manager.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R041-03, 10-29-2003; R054-09, 10-27-2009)

      NAC 353B.610  Change of designated beneficiary. (NRS 353B.310)  An account owner may change the designated beneficiary of the account if the new designated beneficiary is a member of the family of the current designated beneficiary. A change of designated beneficiary is not effective until the Plan Investment Manager receives a written request containing the information required by the Plan Investment Manager and the change is recorded in the records of the Plan Investment Manager.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R054-09, 10-27-2009)

      NAC 353B.615  Opening of account; selection of investment option; reassignment of accounts under age-based investment option. (NRS 353B.310)

     1.  To open an account, an applicant must submit to the Plan Investment Manager a completed application and:

     (a) An initial contribution; or

     (b) A designation of an alternative method of funding approved by the Plan Investment Manager.

     2.  The acceptance by the Plan Investment Manager for processing of an application and an initial contribution or the designation of an alternate method of funding does not constitute the agreement of the Plan Investment Manager to open an account.

     3.  An applicant must select an investment option in which all contributions to the account will be invested. After an account has been opened, the account owner may not change the investment option for the account, except as permitted by 26 U.S.C. § 529 and any regulations, rulings, announcements or other guidance issued pursuant thereto.

     4.  Under the age-based investment option, reassignment of accounts to different “Years-to-College” portfolios will, with regard to those accounts in which the age of the designated beneficiary makes such reassignment appropriate, occur in accordance with the investment policies of the Program.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R041-03, 10-29-2003; R054-09, 10-27-2009)

      NAC 353B.620  Conditions under which Plan Investment Manager may refuse to open account. (NRS 353B.310)  The Plan Investment Manager may, without limitation, refuse to open an account if:

     1.  The applicant is not eligible to be an account owner.

     2.  The applicant has not provided all the information required by the participation agreement.

     3.  The total account balance of all accounts for the same designated beneficiary in the Program and the Nevada Higher Education Prepaid Tuition Program is greater than or equal to the maximum aggregate balance for the accounts of a designated beneficiary established by the Board pursuant to NAC 353B.655. If more than one applicant has submitted an application and an initial contribution or selection of contribution method to open an account for the same designated beneficiary, and all contributions, together with the total account balance of all existing accounts for that designated beneficiary, would exceed the maximum aggregate balance for the accounts of a designated beneficiary established by the Board pursuant to NAC 353B.655, the Program Manager will allow a Plan Investment Manager to accept applications to open accounts for the designated beneficiary in the order of their receipt until the maximum limit has been reached.

     4.  The execution of a participation agreement between the Plan Investment Manager and the applicant violates any federal or state law.

     5.  The Board determines that, for any other reason, it would be advisable to limit the number of accounts in the particular plan managed by that Plan Investment Manager.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R054-09, 10-27-2009)

      NAC 353B.625  Participation agreement: Execution. (NRS 353B.310)  An account owner must execute a participation agreement for each account by completing and signing an account application.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R041-03, 10-29-2003)

      NAC 353B.630  Participation agreement: Required provisions. (NRS 353B.310)  Provisions substantially similar to the following will be included in each participation agreement:

     1.  Any controversy or claim arising out of or relating to this participation agreement, or the breach, termination or validity thereof, must be settled by arbitration administered by the American Arbitration Association in accordance with its rules for commercial arbitration, and judgment on the award rendered in the arbitration may be entered in any court of competent jurisdiction.

     2.  By signing this participation agreement, the parties agree as follows:

     (a) All parties to this agreement are giving up the right to sue each other in court, including the right to a trial by jury, except as provided by the rules of the American Arbitration Association.

     (b) Arbitration awards are generally final and binding, and the ability of a party to have a court reverse or modify an arbitration award is very limited.

     (c) The ability of the parties to obtain documents, witness statements and other discovery is generally more limited in arbitration than in court proceedings.

     (d) The arbitrators do not have to explain the reasons for their award.

     (e) The rules of the American Arbitration Association may impose time limits for bringing a claim in arbitration.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002)

      NAC 353B.635  Maintenance of separate records and accounting for each account; annual reports to account owners. (NRS 353B.310)  Separate records and accounting will be maintained for each account established under a plan. Reports will be issued to each account owner at least annually.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R054-09, 10-27-2009)

      NAC 353B.640  Prohibition on use of interest as security for loan. (NRS 353B.310)  No interest in an account may be used as security for a loan.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002)

Contributions to Accounts

      NAC 353B.645  Authority to make contributions; minimum amounts; refusal of certain contributions. (NRS 353B.310)

     1.  Any person may make a contribution to an existing account.

     2.  The Board will establish the minimum amounts for initial contributions and additional contributions to an account for each plan and will, from time to time, revise those amounts as it determines necessary.

     3.  The Board will refuse contributions that it determines constitute an abuse of the Program.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R054-09, 10-27-2009)

      NAC 353B.650  Form of contributions. (NRS 353B.310)

     1.  Contributions may be made in cash only.

     2.  As used in this section, “cash” includes checks, electronic funds transfers, whether through payroll deduction, an automatic contribution plan or otherwise, and such other methods of payment as determined by the Program Manager and as permitted under applicable law. The term does not include securities, property, or charges on debit or credit cards.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R041-03, 10-29-2003)

      NAC 353B.655  Limitation on contributions; maximum aggregate balance for designated beneficiary; return of excess contributions. (NRS 353B.310)

     1.  A contribution to an account established for a designated beneficiary will not be accepted to the extent the contribution would cause the total account balance of all accounts for the designated beneficiary to exceed the amount necessary to provide for the qualified higher education expenses of the designated beneficiary.

     2.  The Board will establish the maximum aggregate balance for the accounts of a designated beneficiary and will, from time to time, revise the maximum aggregate balance as it determines necessary.

     3.  If any contribution would cause the total account balance of all accounts for a designated beneficiary to exceed the maximum aggregate balance for the accounts of a designated beneficiary established by the Board, the excess money will be rejected and returned to the contributors in order of receipt. The balance in all accounts for that designated beneficiary under the Nevada Higher Education Prepaid Tuition Program will be included in calculating whether the maximum aggregate balance has been exceeded.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R041-03, 10-29-2003)

      NAC 353B.660  Rollover distributions from qualified tuition program of another state. (NRS 353B.310)

     1.  Except as otherwise provided in subsection 2, if a qualified tuition program of another state allows rollover distributions, an account owner may deposit all or part of the money from an account in such a program to an account in the Nevada College Savings Program for the same designated beneficiary or for a different designated beneficiary who is a member of the family of the designated beneficiary of the account from which the money is transferred.

     2.  A rollover distribution pursuant to subsection 1 for the same designated beneficiary will be permitted only once in any 12-month period or as otherwise permitted by 26 U.S.C. § 529 and any regulations, rulings, announcements or other guidance issued pursuant thereto.

     3.  An account owner who wishes to deposit a rollover distribution pursuant to this section must:

     (a) Submit to the Plan Investment Manager either:

          (1) A rollover distribution form executed by the account owner that authorizes the distribution of money from an account in the qualified tuition program of another state; or

          (2) If the rollover distribution will not be deposited directly into an account in a plan from an account in the qualified tuition program of another state, documentation satisfactory to the Plan Investment Manager that the rollover distribution will be deposited in an account in a plan within 60 days after distribution from an account in the qualified tuition program of another state.

     (b) State the amount of the rollover distribution that constitutes contributions and the amount of the rollover distribution that constitutes earnings and provide verified documentation to support the stated amount.

     4.  The entire amount of a rollover distribution from an account in the qualified tuition program of another state will be counted for purposes of calculating the total account balance of all accounts in the Program for a designated beneficiary. If the rollover distribution that is deposited in an account in the Program causes the total account balance of all accounts for a designated beneficiary to exceed the maximum aggregate balance for the accounts of a designated beneficiary established by the Board pursuant to NAC 353B.655, the excess money will be rejected and returned.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R041-03, 10-29-2003; R054-09, 10-27-2009)

Distributions From and Termination of Accounts

      NAC 353B.665  Distributions: Procedure; classification; restriction. (NRS 353B.310)

     1.  An account owner may request a distribution of money from the account by submitting to the Plan Investment Manager not less than 3 business days before the date of the requested distribution a completed distribution request form and such other information as required by the Board or a Plan Investment Manager. The Plan Investment Manager will begin processing properly completed distribution request forms upon receipt. A designated beneficiary may not withdraw money from an account.

     2.  A distribution from an account will be classified as a:

     (a) Nonqualified withdrawal;

     (b) Qualified withdrawal;

     (c) Qualified withdrawal because of the death or disability of, or a scholarship awarded to, a beneficiary; or

     (d) Rollover distribution.

     3.  A distribution may only be arranged by the account owner and only in accordance with NAC 353B.665 to 353B.695, inclusive.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R054-09, 10-27-2009)

      NAC 353B.670  Distributions: Required notification. (NRS 353B.310)  When a Plan Investment Manager makes a distribution of money from an account pursuant to NAC 353B.665 to 353B.695, inclusive, the Plan Investment Manager shall notify the account owner:

      1.  Of the portion of the distribution that is attributable to investment gains in the account;

      2.  That a distribution from an account for any reason other than a qualified withdrawal, a qualified withdrawal because of the death or disability of, or a scholarship awarded to, a beneficiary, or a rollover distribution may be subject to federal tax on the portion of the distribution attributable to investment gains in the account; and

     3.  That it is the responsibility of the account owner to determine his or her liability for federal tax, if any, on the distribution.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R041-03, 10-29-2003; R054-09, 10-27-2009)

      NAC 353B.675  Qualified withdrawals. (NRS 353B.310)

     1.  A qualified withdrawal is a withdrawal of money from an account to pay for the qualified higher education expenses of the designated beneficiary, or because of death, disability or scholarship, as permitted by 26 U.S.C. § 529 or any regulations, rulings, announcements or other guidance issued pursuant thereto. An account owner may request a qualified withdrawal by submitting to the Plan Investment Manager a completed distribution request form.

     2.  When requesting a qualified withdrawal, the account owner, and the designated beneficiary if required by the Plan Investment Manager, must sign the distribution request form and provide such additional information as may be requested by the Plan Investment Manager.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R054-09, 10-27-2009)

      NAC 353B.680  Refund of all or part of qualified distribution. (NRS 353B.310)  A refund of all or part of a qualified distribution that is used to pay for qualified higher education expenses of a designated beneficiary must be paid by the higher education institution to the Plan Investment Manager for credit to the appropriate accounts for that designated beneficiary.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R054-09, 10-27-2009)

      NAC 353B.690  Rollover distributions to account in qualified tuition program of another state or to another account in Program; return of excess money. (NRS 353B.310)

     1.  Except as otherwise provided in subsection 2, if a qualified tuition program of another state allows rollover contributions, an account owner may authorize a direct rollover distribution from an account in the Program to an account in the qualified tuition program of the other state for the same designated beneficiary or for a different designated beneficiary who is a member of the family of the designated beneficiary of the account in the Program out of which the rollover distribution is being made.

     2.  A rollover distribution pursuant to subsection 1 for the same designated beneficiary will be permitted only once in any 12-month period or as otherwise permitted by 26 U.S.C. § 529 and any regulations, rulings, announcements or other guidance issued pursuant thereto.

     3.  An account owner may authorize a direct rollover distribution from an account in the Program to another account in the Program so long as the designated beneficiary of the other account is a member of the family of the designated beneficiary of the account out of which the rollover distribution is being made. If the rollover distribution that is deposited in an account causes the total account balance of all accounts for a designated beneficiary to exceed the maximum aggregate balance for the accounts of a designated beneficiary established by the Board pursuant to NAC 353B.655, the excess money will be rejected and returned.

     4.  When authorizing a rollover distribution, the account owner must complete the forms and make such disclosures of financial information as required by the Plan Investment Manager and the Board.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R041-03, 10-29-2003; R054-09, 10-27-2009)

      NAC 353B.695  Termination: Conditions; notice; nonqualified distribution; qualified distribution. (NRS 353B.310)

     1.  An account may be terminated if the account has a balance of less than $1,000 and no contributions or withdrawals have been made within the preceding 2 calendar years. Before the termination of an account, the account owner will be given such notice as the Board determines adequate and will be given an opportunity to prevent the termination of the account by making an additional contribution or a qualified withdrawal within the period specified by the Plan Investment Manager. Upon the involuntary termination of an account, the account balance will be paid to the account owner as a nonqualified distribution.

     2.  An account owner may request a qualified distribution of the remaining balance of an account upon termination. Such a request will be honored following receipt by the Plan Investment Manager of all information requested by the Plan Investment Manager.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R054-09, 10-27-2009)

Fees

      NAC 353B.700  Fees to support continued operation of Program. (NRS 353B.310)  The Board may charge fees based on the total assets and accounts of the Program to support the continued operation of the Program. These fees will accrue daily and must be remitted by the Program Manager and each Plan Investment Manager as directed by the Board.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R054-09, 10-27-2009)

      NAC 353B.705  Other fees. (NRS 353B.310)  The Program Manager and each Plan Investment Manager may charge such fees as are agreed to by the Program Manager and the Board.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002; A by R054-09, 10-27-2009)

Miscellaneous Provisions

      NAC 353B.710  Accounting and expenditure if money provided by private entities for direct expenses and marketing. (NRS 353B.310, 353B.360)  If the State Treasurer, pursuant to NRS 353B.360, accepts on behalf of the Nevada College Savings Trust Fund money provided by private entities for direct expenses or marketing, the State Treasurer will account for the money separately in the State Treasury. The State Treasurer will expend the money from time to time for direct expenses or marketing activities related to the Program, including expenses of educational programs in this State that encourage saving for college as part of an overall approach to financial planning.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002)

      NAC 353B.715  Review and modification of investment policies by Board. (NRS 353B.310, 353B.370)  The Board will from time to time review the investment policies for the Program and modify those policies if it determines necessary.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002)

      NAC 353B.720  Prohibition on contributor or designated beneficiary to direct investments of Program; exception. (NRS 353B.310)  Except as permitted by 26 U.S.C. § 529 or any regulations, rulings, announcements or other guidance issued pursuant thereto, no contributor to or designated beneficiary of the Program may directly or indirectly direct the investment of any contributions to the Program or any earnings thereon.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002)

      NAC 353B.725  Effect of joint decisions and interpretations by Board and Program Manager; claims and appeals by account owners; determination of Board on appeal. (NRS 353B.310)  All joint decisions and interpretations by the Board and the Program Manager in connection with the operation of the Program are final and binding upon the account owner and the designated beneficiary and all other persons affected thereby. Any claim by an account owner against the State of Nevada, the Board, the Program or any of their respective affiliates, officers, employees or agents pursuant to the participation agreement or the Program must be made solely against the assets of the Program. An account owner who has had a substantial interest affected by a decision of the Board may appeal to the Board in writing. The Board will review the documentation and other submissions and issue a written determination within 60 days after receiving the appeal. The determination of the Board on an appeal is final.

     (Added to NAC by St. Treasurer by R185-01, eff. 4-5-2002)