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 7.181 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
(a) The following
				  words, terms, and phrases, when used in this subchapter, shall have the
				  following meanings. In addition, definitions set forth in Internal Revenue
				  Code, §529A and Education Code, Chapter 54, Subchapter J are incorporated
				  in these rules.
(1) ABLE account or
				  "account"--Has the meaning assigned by Internal Revenue Code, §529A and
				  means an account in the Texas ABLE Program.
(2) ABLE Program or "Program"--The Texas
				  Achieving a Better Life Experience Program created under Education Code,
				  Chapter 54, Subchapter J.
(3)
				  Available funds--The balance of funds held in an ABLE account, after deducting
				  any holds, fees or expenses, or pending transactions, including funeral
				  expenses that may be incurred following the death of a designated
				  beneficiary.
(4) Board--Prepaid
				  Higher Education Tuition Board established under Education Code, §
											54.602.
(5) Contribution--Amounts paid by
				  contributors to an ABLE account.
(6) Contributor--Any person who makes a
				  contribution to an ABLE account.
(7) Designated beneficiary--A resident of
				  this state with a disability who is an eligible individual and named as the
				  beneficiary of an ABLE account. The term may also include out-of-state
				  residents to the extent allowed by law.
(8) Disability certification--With respect to
				  the individual who is the eligible individual, a certification to the
				  satisfaction of the Secretary of the United States Treasury by the individual
				  or the parent or guardian, or other authorized fiduciary of the individual,
				  that certifies that the individual has a medically determinable physical or
				  mental impairment, which results in marked and severe functional limitations,
				  and which can be expected to result in death or which has lasted or can be
				  expected to last for a continuous period of not less than 12 months, or is
				  blind within the meaning of Social Security Act, §1614(a)(2) and such
				  blindness or disability occurred before the date on which the individual
				  attained age 26, subject to any changes or modifications in eligibility
				  criteria in Internal Revenue Code, §529A or Internal Revenue Service
				  regulations or guidance.
(9)
				  Distribution--Any amounts paid by the ABLE Program to or on behalf of an
				  eligible individual.
(10)
				  Eligibility certification--The participant's self-certification under penalty
				  of perjury in a format acceptable to the Board or as required by state or
				  federal regulations or guidance that the designated beneficiary of the account
				  is currently an eligible individual as defined by Internal Revenue Code,
				  §529A.
(11) Eligible
				  individual--A person who meets the requirements of Internal Revenue Code,
				  §529A or Internal Revenue Service regulations or guidance and is certified
				  by an eligibility certification to the Board as eligible to participate in the
				  ABLE Program.
(12) Eligible member
				  of the family--An eligible individual and a member of the family of the former
				  beneficiary to the extent provided by Internal Revenue Code,
				  §529A.
(13) Excess
				  contribution--Contributions that would cause:
(A) the balance of an ABLE account to exceed
				  the amount established by the Board in accordance with Internal Revenue Code,
				  Title 26, §529(b)(6); or
(B)
				  the aggregate contributions from all contributors in a taxable year to exceed
				  the amount in effect under Internal Revenue Code, Title 26, §529A(b)(2)(B)
				  for the calendar year in which the taxable year begins.
(14) Financial institution--A bank, a trust
				  company, a depository trust company, an insurance company, a broker-dealer, a
				  registered investment company or investment manager, the Texas Treasury
				  Safekeeping Trust Company, or another similar financial institution authorized
				  to transact business in this state.
(15) Internal Revenue Code--The Internal
				  Revenue Code of 1986.
(16)
				  Investment options--Investment options offered by the Program for selection by
				  the participant.
(17)
				  Participant--A designated beneficiary or the parent or guardian or other
				  fiduciary of the beneficiary who has entered into a participation
				  agreement.
(18) Participation
				  agreement--A contract between a participant and the Board under this subchapter
				  that conforms to the requirements prescribed by this subchapter and Internal
				  Revenue Code, §529A and includes the application for enrollment submitted
				  in good order.
(19) Plan
				  manager--An entity, including a financial institution, any state or federal
				  agency, contractor or state or multi-state consortium engaged by the Board to
				  carry out certain duties as specified and delegated by the Board for
				  administration of the Program.
(20)
				  Qualified disability expenses--Any expenses related to the eligible
				  individual's blindness or disability that are made for the benefit of the
				  eligible individual who is the designated beneficiary, and includes expenses
				  for education, housing, transportation, employment training and support,
				  assistive technology and personal support services, health, prevention and
				  wellness, financial management and administrative services, legal fees,
				  expenses for oversight and monitoring, funeral and burial expenses, and any
				  other expenses that may be identified from time to time in Internal Revenue
				  Service regulations or guidance or by amendments to Internal Revenue Code,
				  §529A.
(21) Transfer to
				  state--The reimbursement that may be paid to the state Medicaid program upon
				  the designated beneficiary's death. After timely claim submitted in good order,
				  the reimbursement will be made from any available funds and will be calculated
				  according to Internal Revenue Code, §529A(f).