{"data":{"id":"us-ky/krs-164a.704","jurisdiction":"us-ky","citation":"KRS 164A.704","heading":"Duties of board.","body":"The board shall:\n(1) Promulgate administrative regulations, set fees, and adopt procedures as are\nnecessary to implement the provisions of KRS 164A.700 to 164A.709;\n(2) Enter into contractual agreements, including contracts for legal, actuarial, financial,\nand consulting services;\n(3) Invest moneys in the fund in any instruments, obligations, securities, or property as\npermitted by KRS 164A.701(4) and deemed appropriate by the board;\n(4) Procure insurance to protect against any loss in connection with the fund's property,\nassets, or activities and to indemnify board members from personal loss or\naccountability from liability arising from any action or inaction as a board member;\n(5) Make arrangements with eligible educational institutions in the Commonwealth to\nfulfill obligatio ns under prepaid tuition contracts, including, but not limited to,\npayment from the fund of the tuition cost on behalf of a qualified beneficiary to\nattend an eligible educational institution in which the beneficiary is admitted and\nenrolled;\n(6) Develop r equirements, procedures, and guidelines regarding prepaid tuition\ncontracts, including but not limited to, the termination, withdrawal, or transfer of\npayments under a prepaid tuition contract; tuition shortfalls; number of participants;\ntime limitations f or prepaid tuition contracts and the use of tuition benefits; tuition\nconversions; payment schedules; payroll deductions; penalties for failure of\npurchasers to adhere to contracts; and transfer of prepaid tuition credits towards\nprivate education in the Commonwealth or for out-of-state institutions;\n(7) Have the actuarial soundness of the fund evaluated by a nationally recognized\nindependent actuary annually, by October 1 of each year, to determine:\n(a) The amount of prepaid tuition for each tuition plan; and for each eligible\neducational institution for specific academic years, the corresponding value;\n(b) Whether additional assets are necessary to defray the obligations of the\nportion of the fund relating to contracts entered into before April 25, 2006,\nand when those funds will be needed.\n1. For purposes of this paragraph, a \"real liability expected to accrue during\nthe next biennium\" exists if the amount in the fund representing\ncontracts entered into before April 25, 2006, is not sufficient to meet all\nanticipated distributions under contracts entered into before April 25,\n2006, and the expense of maintaining and operating the fund for the\nupcoming biennium.\n2. If the report of the actuary submitted in an odd -numbered year reflects\nthat there will be a r eal liability expected to accrue during the next\nbiennium, the secretary of the Finance and Administration Cabinet shall\ninclude in the budget request for the cabinet an appropriation to the\nboard in an amount necessary to meet the real liability in each fiscal year\nof the biennium, and the General Assembly shall appropriate the\nnecessary funds; and\n(c) Whether additional assets are necessary to defray the obligations of the\nportion of the fund relating to contracts entered into after April 25, 2006, and\nwhen those funds will be needed. If the assets of the portion of the fund\nrelating to contracts entere d into after April 25, 2006, are insufficient to\nensure the actuarial soundness of that portion of the fund, as reported by the\nactuary, the board shall adjust the price of subsequent purchases of prepaid\ntuition contracts to the extent necessary to restor e the actuarial soundness of\nthe fund. The board may suspend the sale of prepaid tuition contracts until the\nnext annual actuarial evaluation is completed if the board determines the\naction is needed to restore the actuarial soundness of the fund. During a\nsuspension of sales of contracts, the board and Tuition Account Program\nOffice shall continue to service existing contract accounts and meet all\nobligations under existing prepaid tuition contracts; and\n(8) Make an annual report each year by November 1 to  the Legislative Research\nCommission and the Governor showing the fund's condition, and whether additional\nassets will be necessary to defray the obligations of the fund.","path":["KRS Chapter 164A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=4595","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:19Z","sha256":"a4ba5c20329dcb556136712cb3428ee29e77dac871dd5c6faaccdee4a1025775","source_id":"us-ky","stale":false,"prev":"us-ky/krs-164a.703","next":"us-ky/krs-164a.705"},"notice":"GroundRules: Original legal text. Not legal advice."}