Section 18-1908 – Bonding of Fiduciary
(a) The Board shall purchase a bond for each fiduciary in accordance with Title 9, Subtitle 17 of the State Government Article. (b) Unless a fiduciary is bonded, the fiduciary may not exercise custody or control of any assets of the Trust. (c) A fiduciary may not allow another fiduciary to act in violation of this section.
Section 18-1909 – Contracts; Community College, University, and Two Plus Two Plans
(a) The Board shall establish prepaid contracts under the Trust to provide for the advance payment of tuition at: (1) A community college; (2) A 4–year college; (3) A university; or (4) Any combination of a community college, college, or university. (b) (1) For the purpose of entering into a prepaid contract, either the account holder or the qualified beneficiary must be […]
Section 18-1910 – Refunds
(a) (1) The Board shall issue refunds as specified in this section. (2) Unless authorized by the Board or under subsection (b) of this section, a refund may not exceed the amount paid into the Trust by the account holder. (b) A refund equal to the same benefits as provided by the prepaid contract, minus any amount paid out […]
Section 18-1911 – Insurance Article Inapplicable
The Board, Trust, and prepaid contracts issued under this subtitle are not subject to the provisions of the Insurance Article.
Section 18-1912 – State and Local Tax Exemption
The assets and income of the Trust are exempt from State and local taxation.
Section 18-1913 – Seizure of Contract Benefits Prohibited
(a) In this section, “person” does not include the State. (b) A person may not attach, execute, garnish, or otherwise seize any current or future benefit under a prepaid contract or any asset of the Trust.
Section 18-1914 – Admission and Tuition
(a) Nothing in this subtitle or in any prepaid contract may be construed as a promise or guarantee by the Board of admission to, continued enrollment at, or graduation from an institution of higher education. (b) The actual tuition rate charged to a qualified beneficiary shall be determined at the time of enrollment in accordance with the […]
Section 18-1915 – Payroll Deductions
The State and its agencies or any local government in the State may agree, by contract or otherwise, to remit payments on behalf of an employee toward a prepaid contract through payroll deductions.
Section 18-1916 – Audit of Trust
(a) (1) The Legislative Auditor shall audit the Trust as provided under Title 2, Subtitle 12 of the State Government Article. (2) The Board shall cause an audit of the Trust to be made by an outside independent auditor annually. (3) The Board shall pay for the audit required under paragraph (2) of this subsection. (b) (1) Within 120 days after […]
Section 18-1906.1 – Obligations Exceeding Market Value of Trust Assets
(a) If the current prepaid contract obligations of the Trust exceed the market value of Trust assets, at the request of the Board the Governor shall include in the annual budget bill submitted to the General Assembly an appropriation in the amount determined under subsection (b) of this section. (b) The appropriation to be included in the […]