TITLE: Relating to the establishment and administration of the qualified ABLE program; granting authority to impose a fee.

SUMMARY: Relating to the establishment and administration of the qualified ABLE program; granting authority to impose a fee.

FULL TEXT:
AN ACT relating to the establishment and administration of the qualified ABLE program; granting authority to impose a fee. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Title 11, Human Resources Code, is amended by adding Chapter 162 to read as follows: CHAPTER 162. QUALIFIED ABLE PROGRAM Sec. 162.001. DEFINITIONS. In this chapter: (1) "ABLE account" means an achieving a better life experience (ABLE) account established under the qualified ABLE program for the purpose of funding qualified disability expenses of a designated beneficiary. (2) "Designated beneficiary" means an individual with a disability whose qualified disability expenses are expected to be paid from an ABLE account. (3) "Financial institution" means a bank, trust company, savings and loan association, credit union, broker-dealer, mutual fund, insurance company, or other similar financial institution authorized to transact business in this state. (4) "Qualified ABLE program" and "qualified disability expenses" have the meanings assigned to those terms by Section 529A, Internal Revenue Code of 1986. Sec. 162.002. QUALIFIED ABLE PROGRAM; POWERS AND DUTIES OF COMPTROLLER. (a) The comptroller shall establish and administer the qualified ABLE program in accordance with this chapter. The comptroller shall take all actions required to keep the plan in compliance with this chapter and to ensure that the plan qualifies as a qualified ABLE program under Section 529A, Internal Revenue Code of 1986. (b) The comptroller has the powers necessary or proper to carry out this chapter. The comptroller may: (1) adopt rules to implement this chapter; (2) enter into contracts and other necessary instruments; (3) solicit and accept gifts, grants, loans, and other aid from any source or participate in any other way in any government program to carry out this chapter; (4) impose administrative fees and charge fees and expenses to the ABLE accounts held under the program or to persons who establish or own ABLE accounts; (5) make reports; and (6) retain financial institutions to serve as plan managers, employees, experts, and consultants. Sec. 162.003. OPERATION OF PROGRAM; ACCOUNTS HELD IN TRUST. (a) The comptroller shall administer the qualified ABLE program to enable individuals to save private funds for the purpose of supporting an individual with a disability by establishing an ABLE account in the program. (b) Money contributed to an ABLE account and earnings on the account are held in trust by the comptroller for the sole benefit of the account owner and designated beneficiary. Sec. 162.004. SELECTION OF FINANCIAL INSTITUTION AS PLAN MANAGER. The comptroller may contract with one or more financial institutions to serve as plan manager and to invest the money in ABLE accounts in the same manner as provided under Subchapter G, Chapter 54, Education Code. Sec. 162.005. ADMINISTRATION OF ACCOUNTS. (a) The comptroller or plan manager shall provide separate accounting for each ABLE account. (b) A savings trust account may not be: (1) assigned for the benefit of creditors; (2) used as security or collateral for any loan; or (3) otherwise subject to alienation, sale, transfer, assignment, pledge, encumbrance, or charge. Sec. 162.006. ABLE ACCOUNT. (a) A person may establish an ABLE account under this chapter and make contributions to the account for the purpose of supporting a designated beneficiary. (b) Except as provided by Subsection (c) or as otherwise permitted by Section 529A, Internal Revenue Code of 1986, the designated beneficiary of an ABLE account is the owner of the account. (c) If the designated beneficiary of an ABLE account is younger than 18 years of age or a ward with respect to whom a guardian of the estate has been appointed, the parent or guardian of the designated beneficiary is the owner of the account. (d) The designated beneficiary of an ABLE account must be a resident of this state. The comptroller shall determine the residence of the designated beneficiary. Sec. 162.007. CONTRIBUTIONS. Any person may make contributions to the ABLE account to meet the qualified disability expenses of the designated beneficiary of the account, in accordance with this chapter and Section 529A, Internal Revenue Code of 1986. SECTION 2. As soon as practicable after the effective date of this Act, the comptroller shall adopt the rules necessary to implement the change in law made by this Act. SECTION 3. If before implementing any provision of this Act a state agency determines that a waiver or authorization from a federal agency is necessary for implementation of that provision, the agency affected by the provision shall request the waiver or authorization and may delay implementing that provision until the waiver or authorization is granted. SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution.