16 PROPOSED ADMINISTRATIVE RULES

 

SOAHR 2007-051 DEPARTMENT OF TREASURY BOARD OF DIRECTORS

MICHIGAN EDUCATION TRUST

 

Filed with the Secretary of State on                    

 

These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, or 45a(6) of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary of State.

 

(By authority conferred on the board of directors of the Michigan education trust by section 11 of 1986 PA 316, MCL 390.1431).

 

R 390.1802 of the Michigan Administrative Code is amended as follows:

 

R 390.1802 Applications; enrollment; denial of authorization to enter into contract.

Rule 2. (1) The board may develop and distribute applications. Applications shall be available from the office of the trust and at other places considered necessary by the executive director. Applications received by the trust shall be date-stamped by the trust as evidence of receipt.

(2)   To be complete, an application shall contain all of the information the board determines necessary to properly administer the application and enrollment process. Upon receipt of a completed application, the trust shall determine the enrollment period in which the applicant may be eligible to enter into a contract with the trust for the proposed beneficiary. The trust shall notify the applicant of the enrollment period for which the application was accepted and provide the applicant with the information necessary to    enter into a contract with the trust.

(3)   The trust shall make a reasonable effort to assure that not more than the number of credit hours necessary to obtain a 4 5-year baccalaureate degree is purchased for a particular beneficiary. To this end, to the extent known by the trust, the trust will not allow, in any enrollment period, the purchase of credit hours which, when added to credit hours previously contracted for on behalf of the beneficiary, will provide the beneficiary with more than the number of credit hours necessary to obtain a 4 5 -year baccalaureate degree. If more than 1 applicant has submitted an application for the same proposed beneficiary and all applications submitted or contracts previously entered into total more than the number of credit hours necessary to obtain a 4 5 -year baccalaureate degree, the trust shall authorize applicants to enter into contracts for the proposed beneficiary in the order of the trust’s receipt of their applications.

(4)   In addition to a denial pursuant to the provisions of subrule (3) of this rule, the trust may deny an applicant the right to enter into a contract with the trust for any of the following reasons:

(a)    The applicant is not legally qualified to enter into the contract.

(b)    Entering into the contract with the applicant violates state or federal securities laws.

(c)    The proposed beneficiary is not a qualified beneficiary under the act.

 

 

(d)   The board determines it would be advisable, for reasons adopted by the board or because it is necessary to protect the actuarial soundness of the trust, to limit the number of contracts entered into by the trust.

(e)    The applicant fails to enter into a contract within the enrollment period specified.

(f)    Any other reason determined by resolution of the board.