2010 Tennessee Code
Title 49 - Education
Chapter 7 - Postsecondary and Higher Education Generally
Part 8 - The Tennessee Baccalaureate Education System Trust Act
49-7-802 - Part definitions.

49-7-802. Part definitions.

As used in this part, unless the context otherwise requires:

     (1)  “Beneficiary,” for purposes of the educational savings plan, means an individual designated under a tuition contract as the individual entitled to apply contributions and earnings accrued in a savings account established under the contract to the payment of that individual's undergraduate, graduate and professional tuition, and other educational costs. For purposes of the educational services plan, “beneficiary” means an individual designated under a tuition contract as the individual entitled to apply tuition units purchased under the contract to the payment of that individual's undergraduate, graduate and professional tuition, and other educational costs. For purposes of the educational services plan, the beneficiary or the purchaser must have been a resident of this state at the time the contract was entered into by the purchaser and the board;

     (2)  “Board” means the board of trustees of the baccalaureate education system trust fund program described in this part;

     (3)  “Educational savings plan” means a plan that permits individuals, associations, corporations, trusts or other organized entities to make contributions to an account that is established by a purchaser for a designated beneficiary that entitles the beneficiary to apply the contributions and earnings on the contributions to the payment of that beneficiary's undergraduate, graduate and professional tuition, and other educational costs;

     (4)  “Educational services plan” means a plan that permits individuals, associations, corporations, trusts or other organized entities to purchase a tuition unit or units under a tuition contract entered into between a purchaser and the board on behalf of a designated beneficiary that entitles the beneficiary to apply such units to the payment of that beneficiary's undergraduate, graduate and professional tuition, and other educational costs;

     (5)  “Institution of higher education” means a state institution of higher education, an accredited private college, university or other postsecondary institution located inside this state that is accredited by an accrediting organization or professional association recognized by the board, or an accredited college, university or other postsecondary institution located outside this state that is accredited by an accrediting organization or professional association recognized by the board;

     (6)  “Other educational costs” mean such other fees or expenses as may be determined by the board; provided, that the fees or expenses are included in the definition of qualified higher education expenses under the sections of the Internal Revenue Code that are applicable to the program;

     (7)  “Program” means the baccalaureate education system trust fund program created in this part. The program shall be comprised of two (2) types of tuition plans: the educational savings plan and the educational services plan. Except as otherwise provided, all terms, conditions and limitations shall apply equally to both types of tuition plans;

     (8)  “Purchaser,” for purposes of the educational savings plan, means an individual, association, corporation, trust or other organized entity that enters into a tuition contract under this part for the creation and deposit of contributions to a savings account on behalf of a beneficiary. For purposes of the educational services plan, “purchaser” means an individual, association, corporation, trust or other organized entity that enters into a tuition contract under this part for the purchase of a tuition unit or units on behalf of a beneficiary;

     (9)  “Refund recipient” means the person designated in a tuition contract by the purchaser as the person entitled to terminate the tuition contract and to receive refunds arising out of the contract pursuant to § 49-7-811;

     (10)  “State institution of higher education” means the colleges, universities, or branches or units of colleges or universities under the control and direction of either the board of trustees of the University of Tennessee or the board of regents of the state university and community college system;

     (11)  “Tuition” means the charges imposed to attend an institution of higher education as an undergraduate, graduate or professional student and all fees required as a condition of enrollment as determined by the board. “Tuition” does not include fees charged to out-of-state residents by institutions of higher education, laboratory fees, room and board or other similar fees and charges;

     (12)  “Tuition contract” means a contract entered into under this part by the board and a purchaser to provide for the payment of tuition and other educational costs, through either the educational savings plan or the educational services plan;

     (13)  “Tuition unit” means a unit of the educational services plan purchased under § 49-7-807 on behalf of a beneficiary; and

     (14)  “Weighted average tuition” means the tuition cost resulting from the following calculation:

          (A)  Add the products of the annual undergraduate tuition at each Tennessee four-year public university multiplied by that institution's total number of undergraduate full-time equivalent students; and

          (B)  Divide the gross total of the products from subdivision (14)(A) by the total number of undergraduate full-time equivalent students attending Tennessee's four-year public universities.

[Acts 1995, ch. 388, § 1; T.C.A., § 49-7-804; Acts 1996, ch. 991, § 1; 1997, ch. 163, § 1; 1998, ch. 644, §§ 1-3; 1999, ch. 233, §§ 1-6; 2001, ch. 203, §§ 1-5.]