Chapter 3334-1 General Provisions

3334-1-01 Definitions.

Terms not defined in this rule are defined in section 3334.01 of the Revised Code.

(A) "Account" means the formal record of all transactions related to a particular beneficiary for a particular account owner and includes all investment options selected by the account owner. Accounts may exist under either the Ohio college savings program and/ or the Ohio variable college savings program.

(B) "Account owner" means the person who establishes and owns an account which includes making withdrawals, designating a beneficiary and selecting investment options. An account owner can be a purchaser or contributor.

(C) "Authority" means the Ohio tuition trust authority, within the office of the chancellor of the Ohio board of regents, which was created by the Ohio legislature under Chapter 3334. of the Revised Code to administer Ohio's college savings programs in order to help prepare families financially for the costs of higher education.

(D) "Board" means the Ohio tuition trust authority board which was created by the Ohio legislature under Chapter 3334. of the Revised Code with the authority granted under divisions (B)(2) and (B)(3) of section 3334.03 of the Revised Code.

(E) "Eligible education institution" means under section 529 of the Internal Revenue Code generally as an accredited post-secondary educational institution offering credit toward a bachelor's degree, an associate's degree, a graduate level or professional degree, or another recognized post-secondary credential. Certain proprietary institutions and post-secondary vocational institutions and certain institutions located in foreign countries are eligible educational institutions. To be an eligible educational institution, the institution must be eligible to participate in U.S. department of education student aid programs.

(F) "Guaranteed savings fund" means those accounts whether containing tuition credits and/or tuition units which have the financial backing through the full faith and credit of the state of Ohio as more specifically set forth in Section 6 of Article VI, Ohio Constitution.

(G) "Incompetency" means the condition of a person, other than a minor, who is temporarily impaired by mental illness, mental deficiency, physical illness or disability, or alcohol or drug use to the extent that the person lacks sufficient understanding to make or communicate responsible decisions or to enter into contracts.

(H) "Investment options" means the various forms of investments being offered to account owners through the authority's trust funds such as mutual funds, bank savings accounts, bank certificates of deposit and such other investments selected by the authority from time to time.

(I) "" "Maximum account value" means the amount determined by the authority that is necessary to pay the qualified higher education expenses of the designated beneficiary.

(J) "Member of the family" means a person related to the beneficiary as follows: a son or daughter, or a descendant of either; a stepson or stepdaughter; a brother, sister, stepbrother or stepsister; the father or mother or an ancestor of either; a stepfather or stepmother; a son or daughter of a brother or sister; a brother or sister of the father or mother; a son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law or sister-in-law; the spouse of the beneficiary or of any of the other foregoing individuals; or any first cousin of the beneficiary.

(K) "Ohio college savings program" means the prepaid college savings program offered by the authority under which both tuition credits and/or tuition units are offered and which are included under the guaranteed savings fund. This program commenced on October 1, 1989.

(L) "Ohio tuition trust fund" means the trust fund created under and pursuant to division (A) of section 3334.11 of the Revised Code for which the authority serves as trustee.

(M) "Ohio variable college savings program" means the college savings program offered by the authority under which only program unit shares are offered but which are not included under the guaranteed savings fund and therefore the underlying investments of said program unit shares are subject to risk. This program commenced on December 1 , 2000.

(N) "Ohio variable college savings trust fund" means the trust fund created pursuant to division (C) of section 3334.20 of the Revised Code for which the authority serves as trustee.

(O) "Participation agreement" means the agreement contained in the authority's offering statement and which sets forth the rights, obligations and duties of the account owner and the authority in relation to each other.

(P) "Permanent disability" means, upon acceptance of such proof as the authority may require, establishing that an individual cannot meet the academic and technical standards requisite to admission or participation in any program or activity of an institution of higher education due to the individual's physical or learning disability and whose disability has lasted or can be expected to last for a continuous period of not less than twelve months. However, an individual with a physical or learning disability which has lasted or can be expected to last for a continuous period of not less than twelve months is not considered to have a permanent disability if that individual is otherwise qualified to enroll or to continue to be enrolled at any institution of higher education and is able to safely and substantially perform an educational program's essential requirements with reasonable accommodation.

(Q) "Person" means an individual or a trust who may be an account owner, beneficiary or successor owner.

(R) "Program unit share" means that measure of ownership held by an account owner in the Ohio variable college savings trust fund.

(S) "Resident alien" means a non-U.S. citizen who has a legally established domicile in the United States.

(T) "Revised Code" means the Ohio Revised Code which sets forth all of Ohio's statutory law as created and enacted by the Ohio legislature.

(U) "Successor owner" means the person designated by an account owner to succeed the account owner in the event of the death, incompetence or permanent disability of the account owner.

(V) "Tuition credit" means that measure of ownership of an account owner in the Ohio tuition trust fund purchased prior to July 1, 1994. One tuition credit entitles the beneficiary to a minimum payment of 1.15 per cent of the weighted average tuition at the time the tuition credit is used but not less than one per cent of the full time undergraduate tuition for an academic year at a state institution of higher education at which the beneficiary is enrolled. Tuition credits are guaranteed by the state of Ohio under the guaranteed savings fund.

(W) "Tuition payment contract" means a contract between a purchaser and the authority for the purchase of tuition credits and/or tuition units under the Ohio college savings program.

(X) "Tuition unit" means that measure of ownership of an account owner in the Ohio tuition trust fund purchased on or after July 1, 1994 but prior to January 1, 2004,. One tuition unit entitles the beneficiary to an amount equal to one percent of the weighted average tuition at the time the tuition unit is used. Tuition units are guaranteed by the state of Ohio under the guaranteed savings fund.

(Y) "Variable college savings contract" means a contract between a contributor and the authority for the purchase of program unit shares under the Ohio college savings program.

Effective: 07/02/2010
R.C. 119.032 review dates: 08/21/2011
Promulgated Under: 111.15
Statutory Authority: ORC 3334.20(D)
Rule Amplifies: ORC sec. 3334.03
Prior Effective Dates: 08/21/2006

3334-1-02 Meetings.

(A) Except as provided in paragraph (B) of this rule, the board shall post notice of any and all of its meetings in the press room of the state capitol building not less than five business days prior to any such meeting unless said meeting is an emergency meeting in which case the board shall give reasonable notice or, if the meeting is a special meeting, then the notice provided for in paragraph (B) of this rule.

(B) In addition to the requirements set forth in paragraph (A) of this rule, the board, its executive committee or any of its subcommittees shall not hold a special meeting unless the board gives at least twenty-four hours advance notice to any news media that have requested notification of said meetings in accordance with this rule, except in the event of an emergency requiring immediate official action. In the event of such an emergency, the member or members calling the meeting or their designee shall notify any such news media immediately of the time, place and purpose of the meeting.

(C) Any person may ascertain the time and place of all regularly scheduled meetings and the time, place, and purpose of all special meetings of the board, its executive committee or any subcommittee by,

(1) Calling the following telephone number during business hours: 800-233-6734.

(2) Consulting the bulletin board located in the press room in the state capitol building.

(3) Consulting the Ohio tuition trust authority website at www.collegeadvantage.com.

(D) Any person may, upon prior written request, obtain reasonable advance notification of all board meetings at which any specific type of public business is to be discussed.

(1) Any such written request shall be addressed to "Executive Director, Ohio Tuition Trust Authority, 580 S. High Street, Suite 208, Columbus, Ohio 43215" and shall contain the name and address of the person to be notified and two telephone numbers where the person may be reached.

(2) It shall be the obligation of the person making a written request for notice of said meetings to notify the board of any change in address. Otherwise, notice shall be deemed given by mailing notice to the last address provided in writing. Such notice of change in address shall be addressed to the board in the same manner as provided in paragraph (D)(1) of this rule.

(3) Any written request for notification of meetings received by the board shall remain valid and in effect for a period of two years from the date of receipt. Upon expiration of said two year period, the board shall have no obligation to provide notice of meetings under such expired request, unless notice is otherwise required by law. A request for notice of meetings may be renewed by following the procedure set forth under paragraph (D)(1) of this rule.

(E) The executive director shall maintain a list of all persons who have made written request to be notified of meetings under paragraph (C) of this rule.

(F) The board may impose reasonable restrictions and requirements on participation by the public at any of the board's meetings.

Effective: 07/02/2010
R.C. 119.032 review dates: 08/21/2011
Promulgated Under: 111.15
Statutory Authority: ORC sec 3334.20(D)
Rule Amplifies: ORC sec. 3334.03
Prior Effective Dates: 7/27/91, 6/17/96, 9/25/97, 08/21/2006

3334-1-03 Duties delegated to the executive committee.

(A) The executive committee of the board is empowered to perform all duties and responsibilities imposed upon the board and to take any action necessary or proper for the discharge of the board duties and responsibilities, except as provided in this rule.

(B) The following duties and responsibilities may not be delegated to the executive committee:

(1) The final designation of bonds as college savings bonds;

(2) Providing advice and consent regarding the employment of an executive director or voting in regard to employment of the executive director; and

(3) The selection and approval of investment agents for the authority's various college savings programs.

(C) Approved minutes of the executive committee meetings will be reported to the board at the board's next regularly scheduled meeting.

(D) The executive committee may, in its discretion, choose not to exercise any of its delegated powers or duties and may refer any matter within its delegated authority to the full board of the authority for review or action.

Effective: 07/02/2010
R.C. 119.032 review dates: 08/21/2011
Promulgated Under: 111.15
Statutory Authority: ORC sec. 3334.20(D)
Rule Amplifies: ORC sec. 3334.03
Prior Effective Dates: 7/21/91, 10/13/00, 08/21/2006

3334-1-05 Application: refusal to enter into a tuition savings contract or variable college savings contract; refund.

(A) Applications to enter into a tuition payment contract and/or variable college savings contract shall be available from the office of the authority, on the authority's website at www.collegeadvantage.com and at other places considered necessary by the authority. Applications received by the authority shall be date-stamped as evidence of receipt.

(B) To be complete, an application shall contain all of the information the authority determines necessary to properly administer the application process. For applications of tuition payment contracts, if such contracts are being offered by the authority, the authority shall notify the applicant of the enrollment period for which the application was accepted, if applicable and provide the applicant with the information necessary to begin tuition unit purchases.

(C) The authority shall not accept an application to enter into a tuition payment contract or variable college savings contract with the purchaser or contributor for a proposed beneficiary if the dollar value for all tuition credits and/or tuition units previously purchased for the proposed beneficiary pursuant to a tuition payment contract and/or contributions made pursuant to a variable college savings contract for that same beneficiary equals or exceeds the maximum account value. If more than one applicant has submitted an application for the same proposed individual beneficiary and said applications, when taken together, equal or exceed the maximum account value, the authority shall accept applications to enter into the applicable contracts for the proposed beneficiary in the order of their receipt.

(D) In accordance with section 1347.05 of the Revised Code, the authority shall require social security numbers and other information be provided for each applicant, account owner (whether a purchaser or contributor), beneficiary and such other persons as the authority shall deem appropriate in order to carry out the authority's duties under Chapter 3334. of the Revised Code or other applicable law.

(E) The authority may refuse to enter into a tuition payment contract and/or variable college savings contract. Reasons for refusal may include but not necessarily be limited to the following:

(1) All information required in the application has not been provided by the applicant.

(2) The dollar value for all tuition credits and/or tuition units and/or program units/ shares already in the name of the beneficiary listed in the proposed application exceeds the maximum account value or the maximum account value would be exceeded by the addition of the dollar value of the program units/ shares set forth in the application.

(3) Entering into a contract with the applicant would violate federal, Ohio or other state laws pertaining to the regulation of securities or the qualification of the authority's college savings programs under the Internal Revenue Code.

(4) A proposed applicant, account owner (whether a purchaser or contributor) or beneficiary is not qualified under Chapter 3334. of the Revised Code or any rule adopted by the authority to participate in the authority's college savings programs..

(5) The authority determines it would be advisable, in order to protect the actuarial soundness of the Ohio college savings program or for other reasons, to limit the number of tuition payment contracts.

(6) Any other reason deemed appropriate or necessary by the authority in order to properly evaluate an application.

Effective: 07/02/2010
R.C. 119.032 review dates: 08/21/2011
Promulgated Under: 111.15
Statutory Authority: ORC sec. 3334.20(D)
Rule Amplifies: ORC 3334.08 , 3334.09 , 3334.18
Prior Effective Dates: 7/21/91, 6/17/96, 9/25/97, 10/13/00, 08/21/2006

3334-1-07 Changing beneficiaries.

(A) A purchaser under the Ohio college savings program or a contributor under the Ohio variable college savings program may change the beneficiary on an account for any reason for all or a portion of the account by complying with the requirements set forth in paragraph (E) of this rule unless the account was established with funds pursuant to either a Uniform Gift To Minor Act and/or Uniform Transfer To Minor Act and/or the change would cause the aggregate balances of all accounts of the new beneficiary to exceed the maximum account value. To insure a non-taxable and penalty-free event, the new beneficiary must be a member of the family of the prior beneficiary.

(B) Notwithstanding the provisions of paragraph (A) of this rule, in no event may a purchaser change a beneficiary to a new beneficiary who is in a younger age group more than one time provided, however, that if the then current beneficiary has attained the age of twenty years no beneficiary changes will be permitted unless due to the death, incompetence or permanent disability of the beneficiary or if the beneficiary is at said time serving in the United States military, any of which events shall not be counted against the aforesaid limitation. In addition, this limitation on changes to a beneficiary in a younger age group may be waived by the authority due to special or unique circumstances presented to the authority but said waiver shall be at the sole discretion of the authority. Purchasers may also change a beneficiary to a new beneficiary in an older age group one time provided, however, that if the then current beneficiary has attained the age of twenty two years no beneficiary changes will be permitted unless due to the death, incompetence or permanent disability of the beneficiary or if the beneficiary is at said time serving in the United States military, any of which events shall not be counted against the aforesaid limitation. In addition, this limitation on changes to a beneficiary in an older age group may be waived by the authority due to special or unique circumstances presented to the authority but said waiver shall be at the sole discretion of the authority. Based on the manner in which the tuition credits and/or tuition units were acquired and any other factors the authority deems relevant, the authority shall make an adjustment to the tuition credits and/or tuition units which the authority deems appropriate to maintain the actuarial soundness of the Ohio college savings program.

(C) Contributors may change to new beneficiaries whether in younger or older age groups unlimited times.

(D) Unless otherwise specified in this rule, all applications for changes of beneficiaries whether by a purchaser or contributor shall:

(1) Be made in writing on such forms as the authority may require;

(2) State the name, age, address and social security number of the new beneficiary;

(3) State whether the change was voluntarily made or due to the death, incompetence or permanent disability of the prior beneficiary.

(4) Unless otherwise set forth in the tuition payment contract or variable college savings contract, a certification by the purchaser or contributor that the change is being made voluntarily and irrevocably and that no payment has been or will be made by anyone in connection with said change.

(E) If all requirements of this rule have been fully complied with, then the new beneficiary may use monies from the tuition payment account or variable college savings account of which he is the new beneficiary at any institution of higher education provided all other conditions established by the authority for the use thereof have been met.

Effective: 07/02/2010
R.C. 119.032 review dates: 08/21/2011
Promulgated Under: 111.15
Statutory Authority: ORC sec. 3334.20(D)
Rule Amplifies: ORC 3334.09 , 3334.18
Prior Effective Dates: 10/13/00, 10/8/01, 08/21/2006

3334-1-08 Transfer of account ownership. or account funds.

(A) Neither a purchaser owning an account created under the Ohio college savings program nor a contributor who owns an account created under the Ohio variable college savings program may make a partial transfer of his ownership in said account. Only transfers of the entire ownership of an account will be permitted as described in paragraph (B) of this rule. A purchaser or contributor may, however, transfer funds out of his account to another person or entity provided, however, in the case of a purchaser owning an account created under the Ohio college savings program, if the new owner later transfers back all or any portion of said funds to the purchaser, then further transfers by the purchaser will be prohibited unless any such additional proposed transfer is approved by the authority due to special or unique circumstances presented to the authority which approval shall, however, be at the sole discretion of the authority. This limitation shall not apply to transfers of funds by contributors who own an account created under the Ohio variable college savings program.

(B) Transfer of the ownership by a purchaser of his entire account created under the Ohio college savings program to a new owner if later transferred back to the purchaser may not thereafter be further transferred unless said additional proposed transfer is approved by the authority due to special or unique circumstances presented to the authority which approval shall, however, be at the sole discretion of the authority. This limitation shall not apply to transfers by contributors of ownership of their entire accounts created under the Ohio variable college savings program. Except as limited in paragraph (B) of this rule, other ownership transfers by purchasers of their entire account shall be unrestricted.

(C) Notwithstanding the provisions of paragraph (B) of this rule, the ownership of an account created under the Ohio college savings program may be transferred more than one time by a purchaser if due to the death, incompetence or permanent disability of said purchaser , any of which events shall not be counted against the limitation set forth in paragraph (B) of this rule.

Effective: 07/02/2010
R.C. 119.032 review dates: 08/21/2011
Promulgated Under: 111.15
Statutory Authority: ORC sec. 3334.20(D)
Rule Amplifies: ORC 3334.08
Prior Effective Dates: 08/21/2006

3334-1-09 Refunds; voluntary rollovers or terminations.

(A) For any Ohio college savings program accounts containing tuition credits and/or tuition units, unless the tuition payment contract provides otherwise, a purchaser (or the person controlling the account) may, by filing the appropriate notice with the authority:

(1) Rollover amounts in the account to another qualified tuition program under Section 529 of the Internal Revenue Code in which case the amount of the rollover shall be determined by the authority in an actuarially sound manner, or

(2) Terminate the contract in whole for any reason in which case the refund amount shall be determined as follows:

(a) Where the beneficiary is eighteen years of age or older, the current weighted average tuition value as of the date of the request.

(b) Except for requests made pursuant to paragraph (A) (2) (c) of this rule, where the beneficiary is under the age of eighteen years and not enrolled in an accredited institution of higher education, the lesser of the following:

(i) The weighted average tuition in effect on the date of the request adjusted for any discount given at the time of purchase, or

(ii) The actual rate of return on the Ohio tuition trust fund less administrative expenses incurred by the authority during the period the tuition credits and/or tuition units were held in the account, or

(iii) The actuarial value of the tuition credits and/or tuition units on the date of the request as established by the authority using actuarially sound principles.

(c) Where the request is due to the death or permanent disability of the beneficiary, upon submission of appropriate supporting documentation to the authority, the amount of the refund shall be calculated by the authority in accordance with division (A)(2) of section 3334.10 of the Revised Code. All termination requests under this paragraph (A) shall require a complete liquidation of all tuition credits and/or tuition units in the account. Rollovers may be in whole or in part.

(B) For variable college savings program accounts, a contributor may, by filing the appropriate notice with the authority:

(1) Rollover amounts in the account to another qualified tuition program under section 529 of the Internal Revenue Code in which event the amount of the rollover shall be equal to the account balance less any applicable administrative fees charged by the authority and/or its investment agents.

(2) Terminate the account in whole or in part for any reason in which event the amount of the refund shall be equal to the account balance (or such lesser amount being withdrawn) less any applicable administrative fees charged by the authority and/or its investment agents.

(C) Notwithstanding anything to the contrary contained in paragraphs (A) and (B) of this rule, a scholarship program may request a refund of tuition credits and/or tuition units under the Ohio college savings program or program units/ shares under the Ohio variable college savings program by filing the appropriate document with the authority. The refund shall be paid to the entity that established the scholarship or, with that entity's approval, to the authority if authorized by law. The amount of the refund shall be determined by the authority in accordance with the requirements for refunds of scholarship accounts contained in section 529 of the Internal Revenue Code.

(D) Except as otherwise provided in this rule, any refund made pursuant to this rule shall be paid to the account owner or, if applicable, to such other refund recipient, as designated by the account owner. The refund will be paid as soon as practicable by the authority following receipt of the written request from the account owner.

Effective: 08/21/2006
R.C. 119.032 review dates: 08/21/2011
Promulgated Under: 111.15
Statutory Authority: R.C. 3334.08 , 3334.10
Rule Amplifies: R.C. 3334.10

3334-1-10 Termination of tuition payment contracts; reallocation.

(A) Except as provided in paragraph (B) of this rule, the authority may terminate a tuition payment contract if no purchases have been made under any such contract for a period of three years or more, and there are fewer than a total of five tuition credits and/or tuition units or combination thereof, or the value of said tuition credits and/or tuition units, when combined is less than seven hundred fifty dollars , whichever is greater, provided the authority must first notify the account owner of the proposed termination and the option to reallocate said credits/units into the Ohio variable college savings program in order to prevent the termination. Said notice shall provide each purchaser not less than thirty days within which the account owner may elect to reallocate in order to prevent said termination. If the account owner fails to notify the authority of its election to reallocate within said thirty day period, then the authority shall within fifteen days following the expiration of said thirty day period, terminate the contract, calculate the refund amount as hereinafter set forth and return said amount to the account owner or such other person designated by the account owner. The amount of the refund shall be determined by the authority using actuarially sound principles and shall be reduced by the amount of any applicable administrative expenses of the authority.

(B) Notwithstanding the provisions of paragraph (A) of this rule, if a purchaser also has one or more accounts in the Ohio variable college savings program and is making regular periodic contributions to at least one of said accounts, then the provisions of paragraph (A) of this rule shall not apply to said purchaser. In order for contributions to qualify under this paragraph (B), they must be made either not less than seven times during each calendar year to an account or in a total amount of not less than one hundred five dollars during each calendar year to an account.

Effective: 08/21/2006
R.C. 119.032 review dates: 08/21/2011
Promulgated Under: 111.15
Statutory Authority: R.C. 3334.08 , 3334.11
Rule Amplifies: R.C. 3334.08

3334-1-11 Withdrawals and payments for qualified higher education expenses.

(A) The account owner or a beneficiary who owns and controls an account under one of the authority's college savings programs shall notify the authority as to his or her intent to use his or her tuition credits, tuition units and/or program units/ shares for an upcoming specific academic term (i.e. quarter, semester, trimester or summer term) to pay the qualified higher education expenses as defined in divisions (H) and (P) of section 3334.01 of the Revised Code of the contract's designated beneficiary, by completion of a qualified withdrawal form provided by the authority.

(B) Distributions made pursuant to paragraph (A) of this rule shall be made using one or more of the following methods at the discretion of the authority:

(1) Distribution directly to the eligible education institution;

(2) Distribution payable to the account owner or to the beneficiary provided, however, that if the beneficiary is under the age of eighteen years, then the authority may require satisfactory documentation prior to making the distribution.

Replaces: 3334-1-07, 3334-1-09

Effective: 08/21/2006
R.C. 119.032 review dates: 08/21/2011
Promulgated Under: 111.15
Statutory Authority: R.C. 3334.08
Rule Amplifies: R.C. 3334.08 , 3334.09
Prior Effective Dates: 7/25/98, 10/08/01 (as to rescinded 3334-1-07) and 10/13/00 (as to rescinded 3334-1-09)

3334-1-12 Conditions under which an interim period for investment of program funds is required for the variable college savings program.

(A) The authority may choose not to renew a contract with an investment agent or may choose to terminate an existing contract prior to its natural expiration for the following reasons:

(1) Material violation or breach of any provision of the contract or applicable state or federal law;

(2) Noncompliance with the authority's investment policy;

(3) Failure to meet the performance criteria agreed upon between the authority and the investment agent; or

(4) Other good cause as determined by the authority.

(B) Should a contract with an existing investment agent either be terminated or not renewed, resulting in an interim period for investment of program funds, the authority shall use its best efforts to contract with one or more alternative investment agents. The authority shall take reasonable steps to ensure that the interim period of investment extends only for a period that is reasonably required to select and contract with one or more new investment agents. During the interim period, the treasurer of state, a state agency having investment authority, or a temporary investment agent shall invest funds received under the variable college savings plan.

Replaces: 3334-1-13

Effective: 08/21/2006
R.C. 119.032 review dates: 08/21/2011
Promulgated Under: 111.15
Statutory Authority: R.C. 3334.08 , 3334.20
Rule Amplifies: R.C. 3334.20
Prior Effective Dates: 10/13/00

3334-1-13 Variable college savings trust fund; investment policy.

(A) The assets of the Ohio variable college savings program shall be segregated from all other assets of the authority and shall be placed in a fund, which shall be known as the Ohio variable college savings trust fund. The assets of the variable college savings program shall be preserved, invested, and expended solely for the purposes of the Ohio variable college savings program set forth in Chapter 3334. of the Revised Code and shall not be loaned or otherwise transferred or used by the authority for any other purpose. The authority, as trustee of the Ohio variable college savings trust fund, shall hold the assets of the Ohio variable college savings program in trust for the contributors to such plan and their beneficiaries. The authority shall receive and hold all payments, deposits, and contributions, and all earnings, until disbursed to pay tuition or other higher education expenses, make refunds pursuant to the authority's participation agreements with contributors and Chapter 3334. of the Revised Code, and/or to pay the investment fees and others costs of administering and operating the program.

(B) The investment policy for the Ohio variable college savings program shall be designed to permit the authority to invest assets received from contributors in a manner that provides contributors with more than one investment option, to the extent permitted under Section 529 of the Internal Revenue Code. If more than one investment option is provided, each contributor and the authority shall enter into an agreement at the time a contribution is made which shall designate the investment option(s) pursuant to which such contribution shall be invested. The authority shall invest each contribution in accordance with such designation.

Replaces: 3334-1-14

Effective: 08/21/2006
R.C. 119.032 review dates: 08/21/2011
Promulgated Under: 111.15
Statutory Authority: R.C. 3334.08 , 3334.20
Rule Amplifies: R.C. 3334.19 , 3334.20
Prior Effective Dates: 10/13/00

3334-1-14 Termination of tuition payment contracts; other.

(A) In addition to the rights granted to the authority under rule 3334-1-10 of the Administrative Code, the authority may terminate a tuition payment contract and force a reallocation or liquidation of the account, except as otherwise provided in this rule, if the beneficiary has reached the age of twenty eight years. The authority shall provide to account owners having such accounts whose beneficiaries have attained said age, written notice of the proposed termination and advising said account owner that within thirty days following receipt of said notice, the account owner may either reallocate the entire amount in the account under said contract into the Ohio variable college savings program or may agree to said proposed termination and a liquidation of the entire account. If the account owner elects to reallocate, the authority shall determine the amount to be reallocated in an actuarially sound manner. If the account owner elects to terminate the contract and liquidate the account, the refund shall be equal to the current weighted average value of the tuition credits and/or tuition units as applicable as of the date of the request.. In either such event, the refund shall be calculated and disbursed by the authority to the account owner or such other person designated by the account owner not later than fifteen days following the aforesaid thirty day period. If the account owner receives the aforesaid thirty day notice but fails to notify the authority of its election within said thirty day period, then the account owner shall be deemed to have elected to terminate the contract and receive a full liquidation of the account. If the account owner does not receive said notice, then the authority shall proceed in accordance with the provisions of paragraph (B) of this rule.

(B) Notwithstanding the provisions of paragraph (A) of this rule, if the authority is unable to locate the purchaser, then the authority shall make a reasonable effort to locate the purchaser's designated beneficiary and/or any person designated by the purchaser to act on the purchaser's behalf. If the authority is unsuccessful in locating all of such persons, then the authority may terminate the purchaser's tuition payment contract and retain all amounts which would otherwise be payable thereunder. If the authority is able to locate any of such persons, then the authority shall advise such persons that unless the purchaser contacts the authority on or before thirty days from the date that such person receives notice from the authority, the authority will terminate the tuition payment contract of the purchaser and retain all amounts which would otherwise be payable under said contract. If the purchaser does contact the authority within said thirty day period, then the purchaser shall be subject to the provisions of paragraph (A) of this rule.

(C) Notwithstanding anything to the contrary contained in this rule, if the beneficiary has reached the age of twenty eight years but is currently serving in the United States military or is currently attending an eligible education institution on a continuous basis or is subject to other circumstances or conditions which the authority deems sufficient to authorize suspension of the application of either paragraph (A) and/or paragraph (B) of this rule, then the authority , upon receipt of documentation satisfactory to the authority establishing any of the foregoing, shall suspend taking any action under either paragraph (A) and/or paragraph (B) of this rule until such time that the beneficiary is discharged from the military service, discontinues his attendance at an eligible education institution or is no longer subject to the other conditions described above, whichever is applicable. Tuition payment contract account owners seeking suspension under this paragraph (C) shall be required periodically to submit such documentation as the authority may require in order to continue any such suspension in force.

Effective: 08/21/2006
R.C. 119.032 review dates: 08/21/2011
Promulgated Under: 111.15
Statutory Authority: R.C. 3334.08 , 3334.09 , 3334.11
Rule Amplifies: R.C. 3334.08 , 3334.09 , 3334.11

3334-1-15 Definitions.

For the purposes of administrative rules promulgated in accordance with section 1347.15 of the Revised Code, the following definitions apply:

(A) "Access" as a noun means an instance of copying, viewing, or otherwise perceiving whereas access as a verb means to copy, view, or otherwise perceive.

(B) "Acquisition of a new computer system" means the purchase of a "computer system," as defined in this rule, that is not a computer system currently in place nor one for which the acquisition process has been initiated as of the effective date of the agency rule addressing requirements in section 1347.15 of the Revised Code.

(C) "Computer system" means a "system," as defined by section 1347.01 of the Revised Code, that stores, maintains, or retrieves personal information using electronic data processing equipment.

(D) "Confidential personal information" (CPI) has the meaning as defined by division (A)(1) of section 1347.15 of the Revised Code and identified by rules promulgated by the agency in accordance with division (B)(3) of section 1347.15 of the Revised Code that reference the federal or state statutes or administrative rules that make personal information maintained by the agency confidential.

(E) "Employee of the state agency" means each employee of a state agency regardless of whether he/she holds an elected or appointed office or position within the state agency. "Employee of the state agency" is limited to the specific employing state agency.

(F) "Incidental contact" means contact with the information that is secondary or tangential to the primary purpose of the activity that resulted in the contact.

(G) "Individual" means a natural person or the natural person's authorized representative, legal counsel, legal custodian, or legal guardian.

(H) "Information owner" means the individual appointed in accordance with division (A) of section 1347.05 of the Revised Code to be directly responsible for a system.

(I) "Person" means a natural person.

(J) "Personal information" has the same meaning as defined in division (E) of section 1347.01 of the Revised Code.

(K) "Personal information system" means a "system" that "maintains" "personal information" as those terms are defined in section 1347.01 of the Revised Code. "System" includes manual and computer systems.

(L) "Research" means a methodical investigation into a subject.

(M) "Routine" means commonplace, regular, habitual, or ordinary.

(N) "Routine information that is maintained for the purpose of internal office administration, the use of which would not adversely affect a person" as that phrase is used in division (F) of section 1347.01 of the Revised Code means personal information relating to employees and maintained by the authority for internal administrative and human resource purposes.

(O) "System" has the same meaning as defined by division (F) of section 1347.01 of the Revised Code.

(P) "Upgrade" means a substantial redesign of an existing computer system for the purpose of providing a substantial amount of new application functionality, or application modifications that would involve substantial administrative or fiscal resources to implement, but would not include maintenance, minor updates and patches, or modifications that entail a limited addition of functionality due to changes in business or legal requirements.

Effective: 03/07/2011
R.C. 119.032 review dates: 02/23/2016
Promulgated Under: 119.03
Statutory Authority: 1347.15
Rule Amplifies: 1347.15

3334-1-16 Procedures for accessing confidential personal information.

For personal information systems, whether manual or computer systems that contain confidential personal information, the authority shall do the following:

(A) Criteria for accessing confidential personal information. Personal information systems of the authority are managed on a "need-to-know" basis whereby the information owner determines the level of access required for an employee of the authority to fulfill his/her job duties. The determination of access to confidential personal information shall be approved by the employee's supervisor and the information owner prior to providing the employee with access to confidential personal information within a personal information system. The authority shall establish procedures for determining a revision to an employee's access to confidential personal information upon a change to that employee's job duties including, but not limited to, transfer or termination. Whenever an employee's job duties no longer require access to confidential personal information in a personal information system, the employee's access to confidential personal information shall be removed.

(B) Individual's request for a list of confidential personal information. Upon the signed written request of any individual for a list of confidential personal information about the individual maintained by the authority, the authority shall do all of the following:

(1) Verify the identity of the individual by a method that provides safeguards commensurate with the risk associated with the confidential personal information;

(2) Provide to the individual the list of confidential personal information that does not relate to an investigation about the individual or is otherwise not excluded from the scope of Chapter 1347. of the Revised Code; and

(3) If all information relates to an investigation about that individual, inform the individual that the Ohio tuition trust authority has no confidential personal information about the individual that is responsive to the individual's request.

(C) Notice of invalid access.

(1) Upon discovery or notification that confidential personal information of a person has been accessed by an employee for an invalid reason, the authority shall notify the person whose information was invalidly accessed as soon as practical and to the extent known at the time. However, the authority shall delay notification for a period of time necessary to ensure that the notification would not delay or impede an investigation or jeopardize homeland or national security. Additionally, the authority may delay the notification consistent with any measures necessary to determine the scope of the invalid access, including which individuals' confidential personal information invalidly was accessed, and to restore the reasonable integrity of the system.

"Investigation" as used in this paragraph means the investigation of the circumstances and involvement of an employee surrounding the invalid access of the confidential personal information. Once the authority determines that notification would not delay or impede an investigation, the authority shall disclose the access to confidential personal information made for an invalid reason to the person.

(2) Notification provided by the authority shall inform the person of the type of confidential personal information accessed and the date(s) of the invalid access.

(3) Notification may be made by any method reasonably designed to accurately inform the person of the invalid access, including written, electronic, or telephone notice.

(D) Appointment of a data privacy point of contact. The authority's executive director shall designate an employee of the authority to serve as the data privacy point of contact. The data privacy point of contact shall work with the chief privacy officer within the office of information technology to assist the authority with both the implementation of privacy protections for the confidential personal information that the authority maintains and compliance with section 1347.15 of the Revised Code and the rules adopted pursuant to the authority provided by that chapter.

(E) Completion of a privacy impact assessment. The authority's executive director shall designate an employee of the authority to serve as the data privacy point of contact who shall timely complete the privacy impact assessment form developed by the office of information technology.

Effective: 03/07/2011
R.C. 119.032 review dates: 02/23/2016
Promulgated Under: 119.03
Statutory Authority: 1347.15
Rule Amplifies: 1347.15

3334-1-17 Valid reasons for accessing confidential personal information.

Pursuant to the requirements of division (B)(2) of section 1347.15 of the Revised Code, this rule contains a list of valid reasons, directly related to the authority's exercise of its powers or duties, for which only employees of the authority may access confidential personal information (CPI) regardless of whether the personal information system is a manual system or computer system:

(A) Performing the following functions constitute valid reasons for authorized employees of the authority to access confidential personal information:

(1) Responding to a public records request;

(2) Responding to a request from an individual for the list of CPI the authority maintains on that individual;

(3) Administering a constitutional provision or duty;

(4) Administering a statutory provision or duty;

(5) Administering an administrative rule provision or duty;

(6) Complying with any state or federal program requirements;

(7) Processing or payment of claims or otherwise administering a program with individual participants or beneficiaries;

(8) Auditing purposes;

(9) Investigation or law enforcement purposes;

(10) Litigation, complying with an order of the court, or subpoena;

(11) Human resource matters (e.g., hiring, promotion, demotion, discharge, salary/compensation issues, leave requests/issues, time card approvals/issues);

(12) Complying with an executive order or policy;

(13) Complying with a policy of the authority or a state administrative policy issued by the department of administrative services, the office of budget and management or other similar state agency.

Effective: 03/07/2011
R.C. 119.032 review dates: 02/23/2016
Promulgated Under: 119.03
Statutory Authority: 1347.15
Rule Amplifies: 1347.15

3334-1-18 Confidentiality statutes.

The following federal statutes or regulations or state statutes and administrative rules make personal information maintained by the authority confidential and identify the confidential personal information within the scope of rules promulgated by the authority in accordance with section 1347.15 of the Revised Code:

(A) Social security numbers: 5 U.S.C. 552a . , unless the individual was told that the number would be disclosed.

(B) All records of the authority indicating the identity of purchasers and beneficiaries of tuition units or college savings bonds, the number of tuition units purchased, used, or refunded under a tuition payment contract, and the number of college savings bonds purchased, held, or redeemed: division (J) of section 3334.11 of the Revised Code.

(C) Records of the authority indicating the identity of purchasers, contributors, and beneficiaries under the program or amounts contributed to, earned by, or distributed from program accounts: division (H) of section 3334.19 of the Revised Code.

Effective: 03/07/2011
R.C. 119.032 review dates: 02/23/2016
Promulgated Under: 119.03
Statutory Authority: 1347.15
Rule Amplifies: 1347.15

3334-1-19 Restricting and logging access to confidential personal information in computerized personal information systems.

For personal information systems that are computer systems and contain confidential personal information, the authority shall do the following:

(A) Access restrictions. Access to confidential personal information that is kept electronically shall require a password or other authentication measure.

(B) Acquisition of a new computer system. When the authority acquires a new computer system that stores, manages or contains confidential personal information, the authority shall include a mechanism for recording specific access by employees of the authority to confidential personal information in the system.

(C) Upgrading existing computer systems. When the authority modifies an existing computer system that stores, manages or contains confidential personal information, the authority shall make a determination whether the modification constitutes an upgrade. Any upgrades to a computer system shall include a mechanism for recording specific access by employees of the authority to confidential personal information in the system.

(D) Logging requirements regarding confidential personal information in existing computer systems.

(1) The authority shall require employees of the authority who access confidential personal information within computer systems to maintain a log that records that access.

(2) Access to confidential information is not required to be entered into the log under the following circumstances:

(a) The employee of the authority is accessing confidential personal information for official authority purposes, including research, and the access is not specifically directed toward a specifically named individual or a group of specifically named individuals.

(b) The employee of the authority is accessing confidential personal information for routine office procedures and the access is not specifically directed toward a specifically named individual or a group of specifically named individuals.

(c) The employee of the authority comes into incidental contact with confidential personal information and the access of the information is not specifically directed toward a specifically named individual or a group of specifically named individuals.

(d) The employee of the authority accesses confidential personal information about an individual based upon a request made under either of the following circumstances:

(i) The individual requests confidential personal information about himself/herself.

(ii) The individual makes a request that the authority takes some action on that individual's behalf and accessing the confidential personal information is required in order to consider or process that request.

(3) For purposes of this paragraph, the authority may choose the form or forms of logging, whether in electronic or paper formats.

(E) Log management. The authority shall issue a policy that specifies the following:

(1) Who shall maintain the log;

(2) What information shall be captured in the log;

(3) How the log is to be stored; and (4) How long information kept in the log is to be retained.

Nothing in this rule limits the authority from requiring logging in any circumstance that it deems necessary.

Effective: 03/07/2011
R.C. 119.032 review dates: 02/23/2016
Promulgated Under: 119.03
Statutory Authority: 1347.15
Rule Amplifies: 1347.15