College savings accounts.

(a) An account may be established by any person who desires to save money for the payment of qualified higher education expenses of a designated beneficiary by entering into a college savings agreement. An account shall not be held jointly.

(b) An application for an account shall be in the form prescribed by the Chief Financial Officer and contain the following information:

(1) The name, address, and social security number or employer identification number of the account owner;

(2) The designation of a designated beneficiary;

(3) The name, address, and social security number of the designated beneficiary;

(4) The certification relating to no excess contributions; and

(5) Such other information as the Chief Financial Officer may require.

(c) The Chief Financial Officer may establish a nominal fee for the application.

(d) Contributions to accounts shall be made only in cash.

(e) An account owner may withdraw all or part of the balance from an account upon 60 days notice or such shorter period as may be authorized by the Chief Financial Officer. The Chief Financial Officer shall promulgate regulations to determine whether a withdrawal is a nonqualified withdrawal or qualified withdrawal.

(f) An account owner may change the designated beneficiary of an account in accordance with procedures established by the Chief Financial Officer. A change in the designated beneficiary of an account shall not be treated as a withdrawal, if the new beneficiary is a member of the family of the former beneficiary.

(g) An account owner may transfer all or a portion of the balance of an account to another account under the Program or into another qualified tuition program for the benefit of the designated beneficiary or a member of the family of the designated beneficiary in accordance with procedures established by the Chief Financial Officer. A transfer to another qualified tuition program to the credit of the same designated beneficiary shall be treated as a withdrawal, if the transfer occurs within 12 months from the date of a previous transfer.

(h)-(k) Repealed.

(l) The Program shall provide a separate accounting for each designated beneficiary.

(n) An account owner or a designated beneficiary shall not use an interest in an account as security for a loan. A pledge of an interest in an account shall be void.

(o) The Chief Financial Officer shall promulgate regulations to prevent contributions on behalf of a designated beneficiary in excess of the amount determined by actuarial estimates necessary to pay qualified higher education expenses. The regulations shall include a requirement that an excess balance with respect to a designated beneficiary be promptly withdrawn in a nonqualified withdrawal or transfer to another account.

(p) If there is a distribution from an account to an individual or for the benefit of an individual during a calendar year, the distribution shall be reported to the Internal Revenue Service by the account owner, the designated beneficiary, or the distributee to the extent required by federal law or regulation. Statements shall be provided to each account owner at least once each year within 60 days after the end of the 12-month period to which they relate. The statement shall identify the contributions made during a preceding 12-month period, the total contributions made to the account through the end of the period, the value of the account at the end of the period, distributions made during the period, and any other information that the Chief Financial Officer shall require to be reported to the account owner. Statements and information relating to accounts shall be prepared and filed to the extent required by federal and state tax law.

(q) A nonprofit organization described in § 501(c)(3) of the Internal Revenue Code may establish and become the account owner of an account to fund scholarships for persons whose identity will be determined upon disbursement. In the case of an account established under this subsection, the requirement that a designated beneficiary be designated when an account is opened shall not apply and each individual who receives an interest in the account as a scholarship shall be treated as a designated beneficiary with respect to the interest.

(r) An annual fee may be imposed upon the account owner for the maintenance of the account.

(s) The following information shall be disclosed to each account owner:

(1) The terms and conditions for an account;

(2) Restrictions on the substitution of designated beneficiaries;

(3) The person or entity entitled to terminate the college savings agreement;

(4) The terms and conditions under which money may be wholly or partially withdrawn from the Program, including charges and fees that may be imposed for withdrawal;

(5) The probable tax consequences associated with contributions to, and distributions from, accounts; and

(6) Other terms, conditions, and provisions considered necessary or appropriate by the Chief Financial Officer.