Current through Register Vol. 50, No. 9, September 20, 2024
A. Account
Statements and Reports
1. The LATTA will
forward to each account owner an annual statement of account which itemizes
the:
a. date and amount of deposits and
interest earned during the prior year; and
b. total principal and interest accrued to
the statement date; and
2. The account owner must report errors on
the annual statement of account to the LATTA within 60 days from the date on
the account statement or the statement will be deemed correct.
B. Earned Interest
1. Interest earned on principal deposits
during a calendar year will be credited to accounts and reported to account
owners after the conclusion of the calendar year in which the interest was
earned.
2. The rate of interest
earned shall be the rate of return earned on the fund as reported by the state
treasurer and approved by the LATTA.
C. Refunded Amounts
1. Interest earned on a START K12 account
which is refunded to the account owner or beneficiary will be taxable for state
and federal income tax purposes.
2.
No later than January 31 of the year following the year of the refund, the
LATTA will furnish the State Department of Revenue, the Internal Revenue
Service and the recipient of the refund an Internal Revenue Service Form 1099,
or whatever form is appropriate according to applicable tax codes.
D. Rule Changes. The LATTA
reserves the right to amend the rules regulating the START K12 Program's
policies and procedures; however, any amendments to rules affecting
participants will be published in accordance with the Administrative Procedure
Act.
E. Determination of Facts. The
LATTA shall have sole discretion in making a determination of fact regarding
the application of these rules.
F.
Individual Accounts. The LATTA will maintain an individual account for each
beneficiary, showing the redemption value of the account.
G. Confidentiality of Records. All records of
the LATTA identifying account owners and designated beneficiaries of START K12
accounts, amounts deposited, expended or refunded, are confidential and are not
public records.
H. No Investment
Direction. No account owner or beneficiary of a START K12 account may direct
the investment of funds credited to an account, except to make an annual
election among investment options that offer fixed earnings, variable earnings
or both. Deposits will be invested on behalf of the START K12 Program by the
state treasurer.
I. No Pledging of
Interest as Security. No interest in an START K12 account may be pledged as
security for a loan.
J. Excess
Funds
1. Principal deposits to an START K12
account are no longer accepted once the account total reaches the maximum
allowable account balance (see
§713 C); however, the principal and
interest earned thereon may continue to earn interest.
2. Funds in excess of the maximum allowable
account balance may remain in the account and continue to accrue interest and
may be disbursed in accordance with §715, or will be refunded in accordance
with §717 upon termination
of the account.
K.
Withdrawal of Funds. Funds may not be withdrawn from an START K12 ACCOUNT
except as set forth in
§715 and §717
L. NSF Procedure
1. A check received for deposit to an START
K12 ACCOUNT which is returned due to insufficient funds in the owner's account
on which the check is drawn, will be redeposited and processed a second time by
the START K12 Program's financial institution.
2. If the check is returned due to
insufficient funds a second time, the check will be returned to the
depositor.
3. Earnings reported by
the state treasurer on deposits made by check or an ACH transfer which is not
honored by the financial institution on which it was drawn subsequent to the
trade date shall be forfeited by the account owner and deposited into the
Variable Earnings Transaction Fund.
M. Effect of a Change in Residency. On the
date an account is opened, either the account owner or beneficiary must be a
resident of the state of Louisiana (see
§709 G); however, if the account owner or
beneficiary, or both, temporarily or permanently move to another state after
the account is opened, they may continue participation in the program in
accordance with the terms of the owner's agreement.
N. Abandoned Accounts. Abandoned accounts
will be defined and treated in accordance with
R.S. 9:151 et seq.,
as amended, the Louisiana Uniform Unclaimed Property Act.
O. Investment in Variable Earnings. When an
account owner selects a variable earnings account, up to 100 percent of the
deposits may be invested in equity securities.
P. Variable Earnings Transaction Fund
1. Monies in the Variable Earnings
Transaction Fund shall be used to pay any charges assessed to the START K12
Program by a financial institution and to pay any loss of value between the
purchase and redemption of units in a variable earnings option that are
incurred when a check or ACH transfer is dishonored after the trade date by the
financial institution on which it was drawn.
2. After the payment of expenses as provided
in Paragraph 1, above, the LATTA may declare monies remaining in the Variable
Earnings Transaction Fund as surplus.
AUTHORITY NOTE:
Promulgated in accordance with 17:3100.1 et
seq.
