The authority may adopt rules under IC 4-22-2 to establish a penalty for a distribution that is not used exclusively for the qualified higher education expenses of an account beneficiary. However, the authority may not establish a penalty for distributions described in section 1(1) of this chapter.

As added by P.L.25-1999, SEC.14. Amended by P.L.135-2002, SEC.26; P.L.93-2024, SEC.154.