53-25-109. Program requirements -- application -- establishment of account -- contributions. (1) The program must be operated through use of accounts in the trust established by designated beneficiaries. Payments to the trust for participation in the program must be made by or on behalf of designated beneficiaries pursuant to participating trust agreements. A person who wishes to participate in the program and open an account into which funds will be deposited to pay the qualified disability expenses of a designated beneficiary shall:
(a) enter into a participating trust agreement pursuant to which an account of the trust will be established;
(b) complete an application on a form prescribed by the department that includes:
(i) the name, address, and social security number of the designated beneficiary and the agent, if the agent is opening the account;
(ii) the government-issued identification of the person opening the account;
(iii) the certification relating to no excess contributions adopted by the department;
(iv) the designation of the financial institution with which the funds in the account will be invested; and
(v) any other information required by the department;
(c) pay the one-time application fee established by the department;
(d) make the minimum contribution required by the department; and
(e) designate the type of account to be opened if more than one type of account is offered.
(2) Each account must be maintained separately from each other account under the program.
(3) Separate records and accounting must be maintained for each account for each designated beneficiary.
(4) Contributions to an account are subject to the requirements of section 529A(b)(2) of the Internal Revenue Code, 26 U.S.C. 529A(b)(2), prohibiting noncash contributions and contributions in excess of the annual contribution limit.
(5) A contributor to or designated beneficiary or agent of an account may not direct the investment of any contributions to an account or the earnings generated by an account in violation of section 529A of the Internal Revenue Code, 26 U.S.C. 529A, and may not pledge the interest of an account or use an interest in an account as security for a loan.
(6) The financial institution shall provide statements to designated beneficiaries whose accounts are invested with the institution at least once each year within 31 days after the 12-month period to which they relate. Each statement must identify the contributions made during the preceding 12-month period, the total contributions made through the end of the period, the value of the account as of the end of the period, distributions made during the period, and any other matters that the department requires to be reported to the designated beneficiary.
(7) Statements and information returns relating to accounts must be prepared and filed to the extent required by federal or state tax law or by administrative rule.
(8) Application fees provided for in subsection (1)(c) must be deposited in the state special revenue fund to the credit of the department for the administration of the achieving a better life experience program.