§256-1  Definitions.  As used in this
chapter, unless the context otherwise requires:



"Account" or "college
account" means an individual savings account established in accordance
with this chapter.



"Account owner" means the individual
who enters into a tuition savings agreement pursuant to this chapter and as
defined under the proposed income tax regulations, sections 1.529-1 to 1.529-6
or the final regulations relating to section 529 of the Internal Revenue Code
of 1986, as amended, whichever is applicable, including any amendments or
supplements thereto. "Designated beneficiary" means a designated
beneficiary as defined in section 529 of the Internal Revenue Code of 1986, as
amended, or successor legislation.



"Eligible educational institution"
means an institution defined in section 529 of the Internal Revenue Code of
1986, as amended, or successor legislation.



"Financial organization" means an
organization authorized to do business in the State of Hawaii that is:



(1)  Certified as an insurer by the insurance
commissioner;



(2)  Licensed or chartered as a financial institution
by the commissioner of financial institutions;



(3)  Chartered by an agency of the federal government;



(4)  Subject to the jurisdiction and regulation of the
securities and exchange commission of the federal government; or



(5)  Any other entity otherwise authorized to act in
this State as a trustee pursuant to the provisions of the Employee Retirement
Income Security Act of 1974, as may be amended from time to time.



"Management contract" means the
contract executed by the director of finance and a financial organization
selected to act as a depository and manager of the program.



"Member of the family" means a family
member as defined in section 529 of the Internal Revenue Code of 1986, as
amended, or successor legislation.



"Nonqualified withdrawal" means a
withdrawal from an account that is not:



(1)  Used for qualified higher education expenses of
the designated beneficiary;



(2)  Made on account of the death or disability of the
designated beneficiary; or



(3)  Made on the account of a scholarship (or
allowance or payment described in section 135(d)(1)(B) or (C) of the Internal
Revenue Code of 1986, as amended) received by the designated beneficiary, to
the extent the withdrawal does not exceed the amount of the scholarship,
allowance, or payment.



"Program" means the college savings
program.



"Program manager" means a financial
organization selected by the director of finance to act as a depository and
manager of the program.



"Qualified higher education expenses"
means any qualified higher education expense defined in section 529 of the
Internal Revenue Code of 1986, as amended, or successor legislation.



"Qualified withdrawal" means
withdrawal from an account to pay the qualified higher education expenses of
the designated beneficiary of the account.



"Tuition savings agreement" means an
agreement between the director of finance or a financial organization and the
account owner. [L 1999, c 81, pt of §2; am L 2000, c 90, §1]