(A) There is created a South Carolina College Investment Trust Fund separate and distinct from the state general fund (hereinafter referred to as the "SCCIP trust fund") to be administered by the Office of State Treasurer. The SCCIP trust fund shall consist of money remitted in accordance with investment trust agreements. The trust fund shall receive and hold all payments, contributions, and deposits intended for it as well as all earnings thereon until disbursed as provided hereunder.
(B) The amounts on deposit in the trust fund do not constitute property of the State. Amounts on deposit in the trust fund must not be commingled with other state funds and the State shall have no claim to or interest in such funds. Investment trust agreements or any other contract entered into by or on behalf of the trust fund do not constitute a debt or obligation of the State and no account owner shall be entitled to any amounts except for those amounts on deposit in or accrued to their account.
(C) The SCCIP trust fund shall continue in existence as long as it holds any funds belonging to an account owner or otherwise has any obligations to any person or entity until its existence is terminated by law and remaining assets on deposit are returned to account owners or transferred to the State as provided by law.
(D) The Office of State Treasurer shall administer the fund, including, without limitation, the keeping of records, the management of bank accounts and other investments, the transfer of funds and the safekeeping of securities evidencing investments. These functions may be administered pursuant to a management agreement with a qualified entity or entities.
(E) Payments received by the Office of State Treasurer on behalf of beneficiaries from account owners and other contributors shall be placed in the trust fund.
(F) The director shall cause there to be maintained separate records and accounts for individual beneficiaries as may be required under Section 529 of the Internal Revenue Code of 1986, as amended, and any other applicable federal law.
(G) Account owners and any other contributors shall only be permitted to contribute cash or any other form of payment or contribution as may be permitted under Section 529 of the Internal Revenue Code of 1986, as amended, and approved by the State Treasurer. The director shall cause the program to maintain adequate safeguards against contributions in excess of what may be required for qualified higher education expenses. The trust fund is specifically authorized to receive and deposit into the trust fund any monetary gift made by an individual by testamentary disposition, including, without limitation, any specific gift or bequeath made by will, trust, or other disposition to the extent permitted under Section 529 of the Internal Revenue Code of 1986, as amended. The trust fund may receive amounts transferred from an UGMA, UTMA, or other account established for the benefit of a minor provided that the beneficiary of such an account is identified as the legal owner of the SCCIP Trust Fund account upon attaining majority age.
(H) The account owner retains ownership of all amounts on deposit in his or her account with the program up to the date of distribution on behalf of a designated beneficiary unless otherwise provided herein. Earnings derived from investment of the contributions shall be considered to be held in trust in the same manner as contributions, except as applied for purposes of the designated beneficiary. Amounts on deposit therein shall be available for expenses and penalties imposed by the Office of State Treasurer for the program as disclosed in the investment trust agreement.
(I) The assets of the SCCIP trust fund shall be preserved, invested, and expended solely pursuant to and for the purposes of this chapter and shall not be loaned or otherwise transferred or used by the State of South Carolina for any other purpose.
(J) Beneficiaries may be changed in any account by an account owner as desired to the extent not prohibited by federal law.
HISTORY: 2001 Act No. 72, Section 3(A); 2002 Act No. 334, Section 19A.