13-63-3. Depositories and managers--Bidding by financial institutions--Selection criteria.
The council may implement the program through the use of one or more financial institutions to act as the depositories and managers. Under the program, persons may establish accounts through the program at a depository. The council may solicit proposals from financial institutions to act as the depositories and managers of the program. Financial institutions that submit proposals must describe the financial instruments that will be held in accounts. Any program depositories and managers selected by the council shall be selected from among bidding financial institutions that demonstrate the most advantageous combination, both to potential program participants and this state, of the following factors:
(1)Financial stability and integrity;
(2)The safety of the investment instruments being offered, taking into account any insurance provided with respect to these instruments;
(3)The ability of the financial institution to track estimated costs of higher education as calculated by the council;
(4)The ability of the financial institutions, directly or through a subcontract, to satisfy record- keeping and reporting requirements;
(5)The financial institution's plan for promoting the program and the investment it is willing to make to promote the program;
(6)The fees, if any, proposed to be charged to persons for maintaining accounts;
(7)The minimum initial deposit and minimum contributions that the financial institution will require and the willingness of the financial institution to accept contributions through payroll deduction plans and other deposit plans; and
(8)Any other benefits to this state or its residents included in the proposal, including, if applicable, an account opening fee payable to the council by the account owner and an additional fee from the financial institution for statewide program marketing by the council.
Source: SL 2001, ch 97, §3; SL 2022, ch 49, §2.
Structure South Dakota Codified Laws
Chapter 63 - Higher Education Savings Plan
Section 13-63-1 - Definitions.
Section 13-63-2 - Powers of South Dakota Investment Council.
Section 13-63-3 - Depositories and managers--Bidding by financial institutions--Selection criteria.
Section 13-63-4 - Contract with financial institution to serve as program manager.
Section 13-63-5 - Duties of program manager.
Section 13-63-6 - Term of contract between council and financial institution.
Section 13-63-7 - Conditions applicable to nonrenewed contracts.
Section 13-63-8 - Termination of contract for good cause--Transfer of accounts.
Section 13-63-9 - Program operated through accounts--Requirements to open.
Section 13-63-10 - Contributions to accounts.
Section 13-63-11 - Withdrawals from account.
Section 13-63-12 - Changing designated beneficiary.
Section 13-63-13 - Transferring funds to another account--Conditions.
Section 13-63-14 - Limitations on changing designated beneficiary and rolling over funds.
Section 13-63-17 - Accounts to be maintained separately.
Section 13-63-21 - Council to adopt rules to prevent excess contributions.
Section 13-63-21.1 - Excess contributions--Processing.
Section 13-63-22 - Account distributions to be reported as required by federal law.
Section 13-63-23 - Account statements--Contents.
Section 13-63-24 - Statements to comply with federal or state tax laws.
Section 13-63-26 - Identifying information of account holders and beneficiaries confidential.
Section 13-63-27 - Account balance of beneficiary student treated as asset of parent--Exceptions.
Section 13-63-28 - Limitations of chapter.
Section 13-63-29 - Chapter does not establish guarantees.
Section 13-63-30 - Mandated disclaimers.