Current through Register Vol. 51, No. 3, September 1, 2024
RELATES TO:
KRS
164A.709
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
164A.704(1) requires the
board to promulgate administrative regulations to implement
KRS
164A.700 to
164A.709.
KRS
164A.704(6) provides that
the board shall develop requirements, procedures, and guidelines regarding
prepaid tuition contracts. 2003 Ky. Acts ch. 156, Part IX, Section 46, and EO
2003-652 transferred the governance and administration of the Prepaid Tuition
Program from the Department of Treasury to the Kentucky Higher Education
Assistance Authority.
KRS
164A.709 authorizes refunds and transfers
from a prepaid tuition contract. This administrative regulation establishes the
requirements for refunds and transfers from a prepaid tuition contract.
Section 1. Refunds.
(1) A purchaser shall make a written request
to the office for any refund that may be due to him from a prepaid tuition
contract in accordance with
11 KAR
17:080, Section 1.
(2) All requested refunds shall be subject to
approval by the office.
(3) A
purchaser shall be notified of the amount of refund due. Any outstanding
administrative fees required by
11 KAR
17:100 shall be deducted from the amount of the
refund.
(4) All refunds shall be
paid to the purchaser by the office from the fund in either a one (1) time lump
sum payment or installment payments. If a refund is paid to the purchaser in
installment payments, interest shall not accrue on the installment
payments.
Section 2.
Transfers.
(1) A prepaid tuition account may
be transferred to another qualified tuition program as defined in
26 U.S.C.
529 in accordance with this section and
applicable provisions of
26 U.S.C.
529. A purchaser shall make a written request
for transfer of funds from the prepaid tuition account to another qualified
tuition program and submit sufficient documentation, as requested by the
office, to confirm the qualified status of the recipient tuition
program.
(2) Upon transfer of a
prepaid tuition account, the purchaser's prepaid tuition contract shall be
terminated and considered null and void and the purchaser shall retain no claim
or right to payment of any amount from the fund.
(3) A transfer shall:
(a) Consist of all contributions made to the
KAPT account; and
(b) Not be a
portion of contributions made to the prepaid tuition account.
STATUTORY AUTHORITY:
KRS 164A.704(1),
(6), 2003 Ky. Acts ch. 156, Part IX, Sec. 46,
EO 2003-652
