Current through Register Vol. 51, No. 3, September 1, 2024
RELATES TO:
KRS
164A.701(6),
164A.704(1),
164A.709(4)
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
164A.704(1) requires the
board to promulgate administrative regulations, set fees, and adopt procedures
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. This administrative regulation establishes the
administrative fees related to a prepaid tuition contract.
Section 1. Payment of Fees.
(1) All fees required under this
administrative regulation shall be paid in cash by means of the method of
payment authorized in
11
KAR 17:050, Section 2(1)(a) through (f).
(2) A prepaid tuition contract benefit shall
not be paid by the office from the fund until all applicable administrative
fees have been paid by the purchaser.
(3) Upon notice to the purchaser, the office
may reduce the value of the prepaid tuition contract in an amount equal to the
outstanding administrative fees due from the purchaser.
Section 2. Application Fee.
(1) A fifty (50) dollar application fee shall
be required for each application. This fee shall be separate from any prepaid
tuition contract payments due under a payment schedule and shall be
nonrefundable.
(2) The board shall
determine the method of payment for the application fee.
Section 3. Account Maintenance Fee.
(1) All prepaid tuition contract payments
shall include a nonrefundable account maintenance fee.
(2) For prepaid tuition contracts paid in a
lump sum, the account maintenance fee shall be ten (10) dollars per year until
enrollment of the qualified beneficiary in an eligible educational institution
or termination of the contract.
(3)
For prepaid tuition contracts that are paid in monthly installments, the
account maintenance fee shall be one (1) dollar per month until enrollment of
the qualified beneficiary in an eligible educational institution or termination
of the contract.
Section
4. Termination Fee.
(1) A fee of
$150 or fifty (50) percent of the total tuition plan payments made, whichever
is less, shall be assessed against the purchaser for the termination of a
prepaid tuition contract. The fee shall be exclusive of all other
administrative fees.
(2) This fee
shall be waived if the prepaid tuition contract is terminated due to the death
or disability or scholarship of the qualified beneficiary.
Section 5. Change in Beneficiary Fee.
(1) A fee of twenty (20) dollars shall be
assessed to transfer the benefits of a prepaid tuition contract to a new
beneficiary.
(2) The fund shall
waive this fee if:
(a) The designation of a
new beneficiary is due to the death, disability, or receipt of scholarship of
the original qualified beneficiary; and
(b) The purchaser:
1. Requests waiver of this fee by written
request to the fund; and
2.
Includes sufficient documentation of the death, disability, or receipt of
scholarship of the original qualified beneficiary.
Section 6. Change in
Purchaser Fee.
(1) A fee of twenty (20)
dollars shall be assessed to transfer the rights and obligations of a prepaid
tuition contract to a new purchaser.
(2) The fund shall waive this fee if:
(a) The designation of the substitute
purchaser is due to the death or disability of the purchaser; and
(b) The substitute purchaser:
1. Requests waiver of this fee in a written
request; and
2. Includes sufficient
documentation of the death or disability of the purchaser.
Section 7. Change in
Payment Schedule Fee. A fee of ten (10) dollars shall be assessed for any
change to a payment schedule requested by a purchaser.
Section 8. Other Prepaid Tuition Contract
Changes Fee. A fee of ten (10) dollars shall be assessed for any other change
not specifically listed in
11 KAR
17:060 that is made to a prepaid tuition contract
requested by a purchaser.
Section
9. Late Payment Fee. A fee of ten (10) dollars shall be assessed
each month for each payment made past its scheduled date.
Section 10. Returned Payment Fee. A fee of
fifteen (15) dollars shall be assessed for any payment made to the fund that is
returned to the purchaser for insufficient funds or other reason which causes
the payment not to be processed. This fee shall apply to all prepaid tuition
contract payments and administrative fee payments that are returned.
Section 11. Document Replacement.
(1) In accordance with
KRS
61.874(3) and
61.876(3)
and
200 KAR
1:020, a fee of ten (10) cents per page shall be
assessed for each document that the purchaser requests.
(2) For documents requiring additional
postage beyond the rate for a first class letter and for documents requiring
overnight delivery, an additional fee shall be assessed equal to the cost of
postage, not to exceed fifteen (15) dollars.
Section 12. Late Notice Fee.
(1) A fee of twenty (20) dollars shall be
assessed for any notice required under
11 KAR
17:070, Section 1(1), which is received later than the
deadline established by the board.
(2) This fee shall be paid by the purchaser
before any tuition shall be paid to an eligible educational institution on
behalf of the qualified beneficiary.
STATUTORY AUTHORITY:
KRS
164A.701(6),
164A.704(1),
(6)
