Arkansas Administrative Code › Agency 236 - ARKANSAS STATE TREASURER › Division 01 - Arkansas Achieving a Better Life Experience Program › Rule 236.01.20-001 - THE ARKANSAS ACHIEVING A BETTER LIFE EXPERIENCE PROGRAM (amended)

Current through Register Vol. 49, No. 6, June, 2024
Section 1.
General
The Arkansas Achieving A Better Life Experience Program (the
				"ABLE Program"), is established pursuant to the Arkansas Achieving a Better
				Life Experience Program Act, Chapter 3 of Title 20 of the Arkansas Code, as
				amended, codified as Ark. Code Ann. §
									20-3-101, et seq. (the "Act"). The
				Program is designed to satisfy the requirements of Section 529 A of the
				Internal Revenue Code of 1986, as amended, and any rules, rulings,
				announcements and other guidance issued thereunder (collectively referred to as
				"Section 529A"). In accordance with the Act, the Arkansas ABLE Program
				Committee (the "Committee") has established the following rules governing the
				operation of the Program. To the extent these rules are interpreted to be
				inconsistent with provisions of Section 529A, the provisions of Section 529 A
				shall prevail. The Program may be affected by subsequent changes in federal and
				state legislation. The Committee shall have the right to modify these rules
				from time to time to comply with then current federal law and rules applicable
				to the Program and for other purposes. Capitalized terms not defined herein
				shall have the meaning ascribed to them in the Act.
Section 2.
Definitions
ABLE
means the federal Achieving a
				Better Life Experience Program as provided under the Tax Increase Prevention
				Act of 2014 (
				Pub. L. No.
				113-295, as amended) that creates state-level
				tax-advantaged savings programs to assist Eligible Individuals.
ABLE Program
or
Program
means the Arkansas Achieving a Better Life
				Experience Program administered by the ABLE Program Committee, managed by the
				Treasurer of the State of Arkansas, and created pursuant to the Arkansas
				Achieving a Better Life Experience Program Act of 2015 (Ark. Code Ann. §
									20-3-101 et seq, as
				amended).
ABLE Program Committee
or
Committee
means the committee created pursuant to Ark.
				Code Ann. §
									20-3-105, or any successor
				provision thereto.
Account Application Form
means an
				application substantially in the form approved by the Committee from time to
				time.
Account
means an individual investment
				account established and owned by an Eligible Individual and maintained pursuant
				to the ABLE Program.
Administrative Expenses
means all
				expenses associated with the implementation and administration of the ABLE
				Program, including fees payable to third parties providing services related to
				the ABLE Program.
Age-Based Option
means a Portfolio the
				assets of which are invested in a combination of Underlying Investments,
				currently based on the ages of Designated Beneficiaries specified for such
				Portfolio.
Approved Allocation
means the
				allocation of assets for a Portfolio as approved by the Committee as may be set
				forth in the Program Management Agreement.
Approved Allocation Effective Date
means the annual date (July 1) by which the Approved Allocation for a Portfolio
				is approved, as may be set forth in the Program Management Agreement.
Arkansas Administration Fee
means any
				fee paid out of the Program's assets to the Committee pursuant to a Program
				Management Agreement.
Business Day
means each day on which
				the New York Stock Exchange is open for trading.
Code
means the Internal Revenue Code
				of 1986, as amended ( 26 USC
				1, et seq.).
Contracting State
means a state
				without a qualified ABLE program that has entered into a contract with Arkansas
				to provide residents of the contracting state access to a qualified ABLE
				program.
Contribution Maximum
means the maximum
				amount that may be contributed to an Account for the same Designated
				Beneficiary, as determined from time to time by the Committee in accordance
				with ABLE.
Designated Beneficiary
means the
				Eligible Individual who established the Account and is the owner of the
				Account.
Designated Beneficiary Change Form
means a form for changing a Designated Beneficiary substantially in the form
				approved by the Committee, from time to time.
Designated Representative
means a
				person who is authorized to act on behalf of an Account Owner and Designated
				Beneficiary.
Disability Certification
means the
				same as provided in Ark. Code Ann. §
									20-3-103(4).
Earnings
means the aggregate total of
				all dividends and interest income received by the ABLE Program at any time
				following the Program's commencement. The aggregate total of dividends and
				interest income shall be reduced by the aggregate total of Administrative
				Expenses at any time following the commencement of the Program. Earnings shall
				be determined without regard to realized or unrealized capital gains and losses
				incurred by the Program.
Eligible Individual
means an
				individual who for a taxable year (1) is entitled to benefits based on
				blindness or disability under Title II or XVI of the Social Security Act,
42 U.S.C.
				§
											301 et seq..
and the
				blindness or disability is a preexisting condition that occurred before the
				date on which the individual attained twenty-six (26) years of age; or (2) has
				a Disability Certification filed with the United States Secretary of the
				Treasury for the taxable year.
FDIC
means the Federal Deposit
				Insurance Corporation.
Federal Guidelines
means official
				guidance from federal agencies with jurisdiction over ABLE, including the SSA's
				Program Operations Manual System (SI 01130.740) (2016) and IRS Notice 2015-81,
				"Guidance Under Section 529A: Qualified ABLE Programs" (80 FR 35602) (2015).
				These incorporations by reference refer to the guidelines on the date specified
				and do not include any editions or amendments subsequently to the date
				specified.
Investment Fund
means the portion of
				the Program's assets invested in Underlying Investments (i.e., that portion of
				the Program's assets not held in the Operating Fund).
IRS
means the Internal Revenue
				Service.
Management Fee
means any fee paid out
				of the Program's assets to the Program Manager pursuant to a written agreement
				approved by the Committee.
Member of the Family
means a brother,
				sister, stepbrother, or stepsister.
MSRB
means Municipal Securities
				Rulemaking Board and any duly established entity which succeeds to the
				functions thereof.
Net Asset Value
means:
(1) the net asset value per share of the
			 Underlying Investments as of the market close on that Business Day;
(2) adjustments, if any, to the net asset
			 value per share of any Underlying Investments made after the market close;
(3) net purchase orders and net
			 redemption orders received by the Program Manager each Business Day;
(4) the deduction and payment of fees and
			 expenses from the Portfolios by the Program Manager; and
(5) the Program Manager's reinvestment, into
			 any Underlying Investment it or its affiliate offers and manages, of any
			 income, dividends and/or capital gain distributions paid by underlying funds.
NYSE
means the New York Stock
				Exchange.
Operating Account
means the account
				established for the purpose of holding the Arkansas Administration Fee.
Operating Fund
means that portion of
				the Program's assets not held in the Investment Fund.
Participation Agreement
means an
				agreement to participate in the Program between an Account owner and the
				Program, substantially in the form approved by the Committee, from time to
				time.
Plan Disclosure Documents
means the
				complete disclosure document or set of documents describing the Program,
				including any supplement(s) thereto, each as amended from time-to-time,
				constituting an "official statement" within the meaning of Rule 15c2-12 under
				the Securities Exchange Act of 1934, as amended, and the rules of the MSRB and
				any successor to the applicable functions thereof.
Portfolio
means one of the Program
				Portfolios established within the Investment Fund to which contributions may be
				allocated, and that are invested in Underlying Investments.
Program Management Agreement
means a
				written implementing agreement among the Program, the Committee and the Program
				Manager.
Program Manager
means the entity
				engaged by the Program to administer the daily operations of the ABLE Program,
				provide marketing, recordkeeping, investment management, and other services for
				the Program, and manage the assets of the Portfolios, all pursuant to the
				Program Management Agreement, and designated as such in the then current Plan
				Disclosure Documents.
Qualified Disability Expenses
means
				the same as provided in Ark. Code Ann. §
										20-3-103(8).
Qualified Withdrawal
or
Qualified Distribution
means a withdrawal from an
				Account to pay the Qualified Disability Expenses of the Designated Beneficiary
				of the Account.
Rollover Contribution
means a
				contribution to an Account which is transferred to or deposited in the Account
				from another program operating as a "qualified ABLE program" within the meaning
				of Section 529 A, or any successor provision thereto, of the Code.
Rollover Distribution
means a
				distribution or transfer from an Account which is transferred to or deposited
				in another program operating as a "qualified ABLE program" within the meaning
				of Section 529A, or any successor provision thereto, of the Code.
Secretary
means the U.S. Secretary of
				the Treasury.
SSA
means the Social Security
				Administration.
SSI Limit
means the Supplemental
				Security Income limit.
Series
means a class of units of a
				Portfolio.
State
means the State of Arkansas,
				acting through its executive, administrative, legislative and judicial
				branches.
Treasurer
means the duly elected
				Treasurer of the State of Arkansas.
Trust
means the Achieving a Better
				Life Experience Program Trust created pursuant to Ark. Code Ann. §
										20-3-104(a).
Underlying Investments
means ETF's,
				securities, separate accounts, registered mutual funds or other investments in
				which assets of a Portfolio are invested.
Withdrawal
means a Qualified
				Withdrawal or a nonqualified withdrawal.
Withdrawal Request
means a request by
				an Account owner to effect a Withdrawal substantially in the form or other
				process approved by the Committee, from time to time.
Year-of-Enrollment Portfolio
means a
				Portfolio the assets of which are invested in a combination of Underlying
				Investments based upon the Designated Beneficiaries participated year of
				enrollment as determined by the Account owner.