Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter N - ACHIEVING A BETTER LIFE EXPERIENCE (ABLE) PROGRAM › Section 7.194 - Investments

Current through Reg. 49, No. 28; July 12, 2024
(a) The Board shall administer and invest the
				  assets of the Program. The Board shall serve as the trustee of the assets of
				  the Program.
(b) The Board may
				  delegate to duly appointed financial institutions or plan manager(s) authority
				  to act on behalf of the Board in the investment and reinvestment of all or part
				  of the assets of the Program and may also delegate to those financial
				  institutions or plan manager(s) the authority to act on behalf of the Board in
				  the holding, purchasing, selling, assigning, transferring, or disposing of any
				  or all of the securities and investments in which the funds in the ABLE account
				  have been invested, as well as the proceeds from the investment of those
				  funds.
(c) The Board may select one
				  or more financial institutions to serve as custodian of all or part of the
				  Program's assets.
(d) In the
				  Board's discretion, the Board may contract with one or more financial
				  institutions to serve as plan manager and to invest the money in ABLE
				  accounts.
(e) In exercising or
				  delegating investment powers and authority, the Board shall exercise ordinary
				  business care and prudence under the facts and circumstances prevailing at the
				  time of actions or decisions related to investment of assets of the Texas ABLE
				  Program. A member of the Board is not liable for any action taken or omitted
				  with respect to the exercise of, or delegation of, those powers and authority
				  if the member discharged the duties of the member's position in good faith and
				  with the degree of diligence, care, and skill that a prudent person acting in a
				  like capacity and familiar with those matters would use in the conduct of an
				  enterprise of a like character and with like aims.
(f) As applicable, the Board shall adopt an
				  investment policy statement for the Program, set the asset allocation of the
				  Program, select the underlying investments of the Program, and the Board shall
				  promptly deposit and invest contributions, excluding any excess contributions,
				  and any earnings as directed by the participant. No earnings or interest will
				  accrue to an ABLE account before the funds have been invested.
(g) For investment purposes, the Board may
				  pool funds, or authorize the pooling of funds, from ABLE accounts with other
				  funds administered by the Board. If funds from the ABLE accounts are pooled
				  with other funds administered by the Board, the Board shall track, monitor,
				  report, and record separately, all investment activity related to the ABLE
				  accounts, including any earnings, fees, or charges or expenses associated with
				  each ABLE account.
(h) A
				  participant may direct the investment of any contributions or any earnings on
				  contributions only to the extent allowed by Internal Revenue Code,
				  §529A.
(i) No investment,
				  financial, or benefits advice is offered to participants, eligible individuals,
				  eligible members of the family, parents, designated beneficiaries, or their
				  guardians or fiduciaries acting on their behalf, from the State of Texas, the
				  comptroller, the Board, the Texas ABLE Program, the Texas ABLE Advisory
				  Committee, or from their employees, vendors, or agents, nor do they assume any
				  responsibility for the performance of any investment option. The decision to
				  enroll in the Program, the selection of investment options, and the suitability
				  of such options is entirely the responsibility of the participant.