(a) Value received.--Upon a full or partial withdrawal of funds from an account, which are not used for qualified disability expenses, the account owner or the account owner's designee shall receive the market value of the account for the amount requested.

(b) Fees.--The department may collect administrative fees or charges for costs upon a nonqualified withdrawal or termination and deduct the fee from the amount otherwise payable.

(c) Involuntary termination.--The department may close an account and return any remaining funds in the account as a nonqualified withdrawal in order to comply with Federal law or if the department, in its sole discretion, determines that termination is in the best interest of the program or the designated beneficiary. Any person aggrieved by a determination to terminate an account may file an administrative appeal with the department within 30 days of the mailing date of the termination notice. A final resolution of the administrative appeal shall be deemed a final decision of the State Treasurer and may be appealed by the aggrieved person to Commonwealth Court. The appeal must be filed within 30 days of the mailing date of the final decision of the State Treasurer. The case shall be heard in Commonwealth Court's appellate jurisdiction.

(d) Taxation.--In the event of a nonqualified withdrawal, to the extent the amount withdrawn includes earnings on the contributions to the account or contributions to the account that are eligible to be deducted from Pennsylvania income tax for the tax year in which the contributions were made, the amount of earnings and deductible contributions shall be subject to taxation as income under the laws of this Commonwealth.