53B-8a-103 - Creation of Utah Educational Savings Plan -- Powers and duties of plan.
53B-8a-103. Creation of Utah Educational Savings Plan -- Powers and duties ofplan.
(1) There is created the Utah Educational Savings Plan, which may also be known andfunction as the Utah Educational Savings Plan Trust.
(2) The plan:
(a) is a non-profit, self-supporting agency that administers a public trust;
(b) shall administer the various programs, funds, trusts, plans, functions, duties, andobligations assigned to the plan:
(i) consistent with sound fiduciary principles; and
(ii) subject to review of the board; and
(c) shall be known as and managed as a qualified tuition program in compliance withSection 529, Internal Revenue Code, that is sponsored by the state.
(3) The plan may:
(a) make and enter into contracts necessary for the administration of the plan payablefrom plan moneys, including:
(i) contracts for goods and services; and
(ii) contracts to engage:
(A) personnel, including consultants, actuaries, managers, counsel, and auditors for thepurpose of rendering professional, managerial, and technical assistance and advice; and
(B) one or more investment advisors, registered under the Investment Advisers Act of1940, with at least 5,000 advisory clients and at least $1,000,000,000 under management, toprovide investment advice to the board with respect to the assets held in each account;
(b) adopt a corporate seal and change and amend it from time to time;
(c) invest moneys within the program fund:
(i) (A) in any investments that are determined by the board to be appropriate; or
(B) in mutual funds registered under the Investment Company Act of 1940, consistentwith the best interests of a designated beneficiary's higher education funding needs; and
(ii) that are in compliance with rules of the State Money Management Council applicableto gift funds;
(d) invest moneys within the endowment fund in any investments that are:
(i) determined by the board to be appropriate;
(ii) approved by the state treasurer; and
(iii) in compliance with rules of the State Money Management Council applicable to giftfunds;
(e) enter into agreements with account owners, any institution of higher education, anyfederal or state agency, or other entity as required to implement this chapter;
(f) solicit and accept any grants, gifts, legislative appropriations, and other moneys fromthe state, any unit of federal, state, or local government, or any other person, firm, partnership, orcorporation for deposit to the administrative fund, endowment fund, or the program fund;
(g) make provision for the payment of costs of administration and operation of the plan;
(h) carry out studies and projections in order to advise account owners regarding presentand estimated future higher education costs and levels of financial participation in the planrequired in order to enable account owners to achieve their educational funding objective;
(i) participate in federal, state, local governmental, or private programs;
(j) create public and private partnerships, including investment or management
relationships with other 529 plans or entities;
(k) promulgate, impose, and collect administrative fees and charges in connection withtransactions of the plan, and provide for reasonable service charges;
(l) procure insurance:
(i) against any loss in connection with the property, assets, or activities of the plan; and
(ii) indemnifying any member of the board from personal loss or accountability arisingfrom liability resulting from a member's action or inaction as a member of the plan's board;
(m) administer outreach efforts to:
(i) market and publicize the plan and its products to existing and prospective accountowners; and
(ii) encourage economically challenged populations to save for post-secondaryeducation;
(n) adopt, trademark, and copyright names and materials for use in marketing andpublicizing the plan and its products;
(o) administer the funds of the plan;
(p) sue and be sued in its own name; and
(q) have and exercise any other powers or duties that are necessary or appropriate tocarry out and effectuate the purposes of this chapter.
Amended by Chapter 6, 2010 General Session