Distribution of program money -- Application process -- Prioritization -- Account agreements.
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(1) The plan shall distribute money in the program by creating a 529 savings account for an eligible individual identified by a community partner.
(2)
(a)
(i) The plan shall carry out the responsibility described in Subsection (1) by establishing a process in which a community partner may apply for an allocation of program money to designate for eligible individuals.
(ii) The Utah Board of Higher Education shall establish the application process for a community partner to apply for an allocation of program money.
(iii) The application process described in Subsection (2)(a)(ii) shall include:
(A) the criteria for a community partner to apply for an allocation of program money;
(B) the criteria that the plan will use to prioritize applications if the dollar amounts requested in the applications exceed the dollar amount available;
(C) the requirements for establishing a 529 savings account in the name of an eligible individual; and
(D) the roles and responsibilities of a community partner that makes a successful application for an allocation of program money.
(b)
(i) A community partner that receives an allocation of program money shall enter into a contract with the plan.
(ii) The contract described in Subsection (2)(b)(i) shall:
(A) define the roles and responsibilities of the community partner and the plan with regard to the community partner's allocation of program money; and
(B) specify that the individual the community partner identifies to receive a portion of the community partner's allocation is an eligible individual.
(3) If the plan approves a community partner's application for an allocation of program money, the plan may not promise or otherwise encumber the allocation to any other person unless the allocation is forfeited under Subsection (5)(b)(ii).
(4)
(a) A community partner shall identify each eligible individual who will receive a portion of the community partner's allocation of program money.
(b) After a community partner identifies an eligible individual to receive a portion of the community partner's allocation, the community partner shall notify the plan of:
(i) the amount of the community partner's allocation that shall transfer to a 529 savings account in the name of the identified eligible individual; and
(ii) the amount, if any, that the community partner will be contributing in accordance with Part 1, Utah Educational Savings Plan, to the 529 savings account on behalf of the identified eligible individual.
(5)
(a) Upon receiving the information described in Subsection (4)(b), the plan shall establish a 529 savings account for the identified eligible individual, with the community partner as the account owner.
(b) The community partner shall inform the beneficiary that:
(i) within three years after the day on which the beneficiary graduates from high school, the beneficiary shall enroll in:
(A) a credit-granting institution of higher education within the state system of higher education;
(B) a private, nonprofit college or university in the state that is accredited by the Northwestern Association of Schools and Colleges; or
(C) a technical college; and
(ii) if the beneficiary fails to enroll within three years after the day on which the beneficiary graduates from high school, any money that remains in the 529 savings account shall be returned to the program.
(c) After entering into the account agreement described in Subsection (5)(a), the plan shall deposit into the beneficiary's 529 savings account the amount of the allocation described in Subsection (4)(b)(i).