§3100.6. Education savings accounts; creation, terms, and conditions

A.(1) An education savings account shall be established for a person who is determined by the authority to qualify under one of the following classifications:

(a) A person determined by the authority to be the parent, grandparent, or court-ordered custodian of the person being designated as beneficiary of the account or who claims the person being designated as beneficiary as a dependent on his federal income tax return, and at the time of the initiation of the agreement, the person or beneficiary is a resident of the state.

(b) A person determined by the authority to be a member of the family of the beneficiary, and at the time of the initiation of the agreement, the person or the beneficiary is a resident of the state.

(c) Any other person, and at the time of the initiation of the agreement, the beneficiary is a resident of the state.

(d) Any other person who, at the time of the initiation of the agreement, is a resident of the state and the beneficiary is not a resident of the state.

(e) Any other person or any government entity, and at the time of the initiation of the agreement:

(i) The beneficiary is a resident of the state.

(ii) The federal adjusted income of the beneficiary's family is less than thirty thousand dollars or the beneficiary is eligible for a free lunch under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.).

(iii) The beneficiary is not a member of the account owner's family nor a member of the family of any member or employee of the authority or the office of student financial assistance.

(iv) The deposits to the account are an irrevocable donation by the owner.

(2) The person completing the account owner's agreement for an education savings account shall be the "owner" of the account.

B.(1)(a) An education savings account may have only one designated beneficiary. The account owner shall designate the beneficiary; however, an account owner meeting the classification requirements of Subparagraph (A)(1)(e) of this Section may authorize the authority to designate the beneficiary.

(b) The beneficiary designated by the authority shall meet the following minimum qualifications:

(i) Be a resident of the state.

(ii) The federal adjusted gross income of the beneficiary's family must be less than thirty thousand dollars or the beneficiary must be eligible for a free lunch under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.).

(iii) Not be a member of the account owner's family nor a member of the family of any member or employee of the authority and the office of student financial assistance.

(2) Persons who are eligible to establish an education savings account for more than one beneficiary shall establish a separate account for each beneficiary. The account shall be subject to all other terms, conditions, and fees applicable to an education savings account.

C. The right of a beneficiary to the assets of an education savings account shall not be subject to and is expressly dispensed from collation, execution, garnishment, attachment, the operation of bankruptcy or the insolvency laws or other process of law. Monies paid into or out of the assets and the income of any validly existing qualified tuition program authorized by Section 529 of the Internal Revenue Code of 1986 as amended, including but not limited to an education savings account as defined in R.S. 17:3100.2, shall not be liable to attachment, levy, garnishment, or legal process in the state in favor of any creditor of or claimant against any program participant, owner, contributor, or program.

Acts 2018, No. 687, §2, eff. May 30, 2018.