A. The Regents shall solicit answers to appropriate ruling requests from the United States Internal Revenue Service regarding the tax status of the value received under the contract to the purchaser or qualified beneficiary. The Regents shall attempt to ensure that purchasers and qualified beneficiaries receive the maximum federal and state tax benefits under this program. No contracts shall be entered into with any purchaser prior to June 1, 1990 or until receipt of an Internal Revenue Service private letter ruling determining that:
1. the income of the Trust is excludable from gross income as income earned by an integral part of the state or as income derived from the exercise of an essential governmental function that accrues to the state under Section 115 of the Internal Revenue Code; and
2. the purchase price of such a contract either is excludable from the application of the federal gift tax or qualifies as a gift of a present interest in property eligible for the ten-thousand-dollar annual exclusion,
whichever occurs later.
B. The Regents may solicit answers to appropriate ruling requests from the United States Securities and Exchange Commission regarding the application of federal security laws to the fund.
Added by Laws 1988, c. 261, § 11, emerg. eff. June 29, 1988.