reglab/statecodes huggingface dataset:
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter L - PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II › Section 7.127 - Purchaser; Beneficiary

Current through Reg. 49, No. 28; July 12, 2024
(a) A purchaser may
				  be any person who is permitted to be a purchaser under Internal Revenue Code,
				  §529. The purchaser is not required to be a resident of this state, except
				  as provided by subsection (d)(2) of this section.
(b) A purchaser is the owner of the account
				  to which the purchaser's prepaid tuition contract money is assigned.
(c) A prepaid tuition contract may be
				  established by one purchaser at the time it is established during enrollment,
				  and thereafter it shall have only one purchaser as owner except when owned by
				  more than one individual, trust, estate, or UGMA/UTMA custodian, guardian,
				  corporation, non-profit entity, or other legal entity (or any combination
				  thereof) as a result of a transfer by operation of law.
(d) At the time the purchaser enters into a
				  prepaid tuition contract, the beneficiary of the contract must be:
(1) a resident of this state; or
(2) a nonresident who is the child of a
				  parent who is both a resident of this state and the purchaser of the
				  contract.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter L - PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II › Section 7.128 - Contract Payment

Current through Reg. 49, No. 28; July 12, 2024
(a) Payments under
				  prepaid tuition contracts may be made in single or periodic Pay-As-You-Go
				  payments, or under an installment plan, or both. The first payment due date for
				  a newly enrolled purchaser is May 1, or as may be otherwise established by the
				  board for subsequent enrollment periods.
(b) For payments under a contract to be made
				  in installments over a period longer than one year, those payments can be made
				  in annual, or monthly installments, in accordance with any permitted
				  installment plans established by the board.
(1) Monthly installment plans shall include
				  as a minimum: monthly installments to matriculation, a 10-year installment
				  plan, and a 5-year installment plan.
(2) Annual installment plans include annual
				  installments to matriculation, a 5-year installment plan, or a 10-year
				  installment plan.
(3) Installment
				  payments shall be due on the 1st of the month.
(4) Installment payments shall include an
				  implied interest component at a rate set by the board to ensure the actuarial
				  soundness of the fund.
(5)
				  Installment plans must be paid in full prior to redemption of any units
				  purchased by the installment plan.
(6) Under an installment plan, the basic unit
				  price will not change over the life of the installment agreement, unless the
				  agreement is later amended. The tuition unit price for new installment plans to
				  be entered into during later enrollment periods will be adjusted by the board
				  to reflect the then effective base tuition unit price and an updated implied
				  interest component at a rate applicable to the new installment plans.
(7) A purchaser may initially establish both
				  an installment plan contract and a Pay-As-You-Go contract when enrolling in the
				  program, but the contract payments will be tracked separately. The purchaser
				  will receive one combined account statement reflecting all payments under the
				  different payment plans for the same purchaser and same beneficiary.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter L - PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II › Section 7.129 - Deferred Use of Prepaid Credit Hours

Current through Reg. 49, No. 28; July 12, 2024
(a) A
				  prepaid tuition contract will allow a beneficiary:
(1) to elect to pay from a source other than
				  tuition units purchased under the contract the beneficiary's tuition and
				  required fees for some or all of the tuition and required fees to which the
				  beneficiary is entitled to payment under the contract; and
(2) to defer to a subsequent semester or
				  other academic term the right to payment of the beneficiary's tuition and
				  required fees by using tuition units remaining under the contract.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter L - PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II › Section 7.130 - Change of Beneficiary

Current through Reg. 49, No. 28; July 12, 2024
(a) The purchaser
				  of a prepaid tuition contract may designate a different beneficiary in place of
				  the original beneficiary subject to the following conditions:
(1) the new beneficiary must meet the
				  requirements of a beneficiary under §
											7.127 of
				  this title (relating to Purchaser; Beneficiary), on the date the designation is
				  changed;
(2) the new beneficiary
				  must meet the requirements of Internal Revenue Code, §529 (such as being a
				  member of the family of the former beneficiary, as defined by §529(e)(2)),
				  to prevent the change of beneficiary from being treated as a distribution under
				  that law;
(3) documentation must be
				  submitted evidencing the relationship between the replacement beneficiary and
				  the former beneficiary; and
(4) the
				  terms of the contract may be adjusted so that the purchaser is required to pay
				  the amount the purchaser would have been required to pay had the purchaser
				  originally designated the new beneficiary as the beneficiary, taking into
				  account any payments made before the date the designation is changed.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter L - PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II › Section 7.131 - Purchaser Obligations and Requests

Current through Reg. 49, No. 28; July 12, 2024
(a) The
				  purchaser is the person who is obligated to make payments under a prepaid
				  tuition contract.
(b) Unless
				  otherwise provided in this subchapter, the purchaser shall execute all prepaid
				  tuition contract changes, conversions, transfers, terminations and refund
				  requests.
(c) Any request to change
				  a purchaser, change a beneficiary, or terminate a contract, must be submitted
				  in a writing signed by the purchaser.
(d) A purchaser may designate in writing to
				  the board on the enrollment form, or in a separate written request, a person
				  with a right of survivorship in the event of the purchaser's death. However,
				  until the rights under the contract pass to the designee, such designee has no
				  right to direct decisions regarding contract changes, conversions, transfers or
				  termination. Without limitation on the foregoing, the contract may be modified
				  or terminated by, or refund disbursed to, the purchaser without the consent or
				  authorization of a designee of survivorship rights. It is the purchaser's
				  responsibility to update the survivorship information as appropriate.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter L - PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II › Section 7.132 - No Promise or Guarantee of Admission

Current through Reg. 49, No. 28; July 12, 2024
Nothing in this subchapter or the program should be
					 construed as a promise or guarantee that a beneficiary will be:
(1) admitted to any public or private
				  institution of higher education;
(2) admitted to a particular public or
				  private institution of higher education;
(3) allowed to continue enrollment at a
				  public or private institution of higher education; or
(4) graduated from a public or private
				  institution of higher education.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter L - PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II › Section 7.133 - Contract Termination

Current through Reg. 49, No. 28; July 12, 2024
(a) The prepaid
				  tuition contract may be terminated by the board:
(1) if the board determines that a purchaser
				  has misrepresented residency, age, or other information required by the board
				  in connection with the purchase of a contract;
(2) upon default for failure to pay any
				  amounts due under the prepaid tuition contract prior to the expiration of any
				  applicable grace periods as outlined in §
											7.134
				  of this title (relating to Default and Delinquency Conversion), unless such
				  contract is converted to a Pay-As-You-Go contract; or
(3) if the purchaser fails to provide a valid
				  social security account number or other applicable tax identification number
				  for the purchaser or beneficiary within six months of enrollment.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter L - PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II › Section 7.134 - Default and Delinquency Conversion

Current through Reg. 49, No. 28; July 12, 2024
(a) An
				  account is subject to a late payment penalty for payments not received within
				  15 days of the payment due date.
(b) If no payments are received within 90
				  days of the first payment due date under a newly established account, the
				  account is in default and will be cancelled.
(c) Failure to make any payment within 30,
				  60, or 90 days of the due date will result in the plan manager sending out a
				  delinquency notice. A late payment penalty will be assessed in each instance,
				  and the failure to make timely payment will be considered a default.
(d) If a default has not been cured within 90
				  days of the outstanding payment default date, the plan manager will send out a
				  default notice advising the purchaser that the contract will be converted in 30
				  days if not properly cured by the purchaser.
(e) A purchaser may cure the default status
				  of its prepaid tuition contract prior to the expiration of 120 days after the
				  payment default date, subject to payment of all the delinquent amounts and any
				  fees specified in the board's fee schedule. A contract that is not cured within
				  120 days after default shall be converted from an installment plan to a
				  "Pay-As-You-Go" contract reflecting the number of tuition units paid for at the
				  time of the conversion, less any outstanding fees. Any future purchases under
				  the contract will reflect the prices in existence at the time of purchase. If
				  the purchaser wishes to establish another installment plan at a later date
				  after a contract has been converted, the purchaser must wait until the next
				  enrollment period to do so.
(f)
				  Failure to make timely payments for 6 consecutive or non-consecutive months out
				  of a 12 month period may also result in termination of the installment plan and
				  conversion of the contract to a Pay-As-You-Go contract.
(g) Any refund in the event of a default
				  shall be limited to the Reduced Refund Value as governed by the provisions
				  related to contract termination in §
										7.135 of this
				  title (relating to Refunds).
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter L - PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II › Section 7.136 - Transfer to Institutions on Redemptions of Tuition Units

Current through Reg. 49, No. 28; July 12, 2024
(a) When a beneficiary enrolls at a general
				  academic teaching institution or two-year institution of higher education and
				  notifies the institution that payment will be made by redeemed tuition units,
				  the comptroller will arrange for the transfer to the institution of the
				  appropriate amount specified under Education Code, §
										54.765(c), (d) and
				  (e).
(b) When a beneficiary enrolls at a private
				  or independent institution of higher education, medical and dental unit, career
				  school, or accredited out-of-state institution of higher education, upon
				  request the comptroller will arrange for the transfer to the institution of the
				  amount specified under Education Code, §
										54.765(f).
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter L - PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II › Section 7.137 - Transfers Among 529 Plans

Current through Reg. 49, No. 28; July 12, 2024
(a) A purchaser may
				  transfer money between an account under this subchapter and an account under
				  another plan established by this state or by another state or other authorized
				  entity in accordance with Internal Revenue Code, §529, to the extent and
				  in the manner authorized by that section.
(b) The value of the account at the time of
				  transfer is the Transfer Value less any fees due and payable under the
				  contract.
(c) To apply for a
				  transfer, the purchaser shall complete and submit a transfer request form
				  promulgated by the board not later than 30 days prior to the desired effective
				  date of the transfer. Upon request by the executive director, plan manager, or
				  other designee, the purchaser shall provide any additional information
				  necessary to properly effectuate the transfer.
(d) Any fees that are due and payable to the
				  program under the board's fee schedule must be paid by the purchaser prior to
				  the transfer.
(e) Transfers to
				  another qualified tuition program for the benefit of a designated beneficiary
				  are limited to one per 12-month period or as otherwise provided by Internal
				  Revenue Code, §529.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter L - PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II › Section 7.138 - Recordkeeping for Certain Rollover Contributions

Current through Reg. 49, No. 28; July 12, 2024
(a) In the case of a rollover contribution
				  from another qualified tuition plan, a Coverdell education savings account, or
				  a qualified U.S. Savings Bond, the purchaser shall provide appropriate
				  documentation and certifications to the plan manager to identify the source of
				  the contribution, confirm that the contribution is a qualified rollover under
				  Internal Revenue Code, §529, and to specify that portion of the
				  contribution that is attributable to the purchaser's contributions or
				  investment in the previous account and that portion of the rollover
				  contribution that is attributable to earnings that were accumulated in the
				  previous account. Rollovers must be completed within 60 days to avoid potential
				  tax consequences.
(b) For a
				  purchase of tuition units using a contribution from a direct transfer between
				  529 programs, such as a trustee-to-trustee rollover, the purchaser must arrange
				  for the distributing program to provide to the plan manager a statement setting
				  forth the earnings portion of the rollover distribution within 30 days after
				  the distribution or by January 10th of the year following the calendar year in
				  which the rollover occurred, whichever is earlier.
(c) Upon receipt of the rollover
				  contribution, the plan manager will add the earnings portion of the rollover
				  contribution to the earnings recorded under the prepaid tuition contract to
				  which the rollover contribution is made.
(d) Until the plan manager receives
				  appropriate documentation showing the earnings portion of the rollover
				  contribution, the board will treat the entire amount of the contribution as
				  earnings in the prepaid tuition contract receiving the distribution.
(e) For the purpose of this section,
				  "appropriate documentation" means:
(1) in the
				  case of a rollover contribution from a Coverdell education savings account, an
				  account statement issued by the financial institution that acted as trustee or
				  custodian of the education savings account that shows basis and earnings in the
				  account;
(2) in the case of a
				  rollover contribution from the redemption of qualified U.S. Savings Bonds, an
				  account statement or Form 1099-INT issued by the financial institution that
				  redeemed the bonds showing interest from the redemption of the bonds;
(3) in the case of a rollover contribution
				  from another 529 program, a statement issued by the distributing 529 program
				  that shows the earnings portion of the distribution; or
(4) other documentation acceptable to the
				  board supported by the purchaser's certification.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter L - PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II › Section 7.139 - Actuarial Soundness of Fund

Current through Reg. 49, No. 28; July 12, 2024
(a) The
				  board will administer the fund in a manner that is sufficiently actuarially
				  sound to pay the costs of program administration and operations and to meet the
				  obligations of the program.
(b) The
				  board will annually evaluate the actuarial soundness of the fund.
(c) The board may adjust the terms of
				  subsequent prepaid tuition contracts as necessary to ensure the actuarial
				  soundness of the fund.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter L - PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II › Section 7.140 - Suspension of New Enrollment; Program Modification or Termination

Current through Reg. 49, No. 28; July 12, 2024
(a) On the request of the comptroller as the
				  comptroller considers necessary to ensure the actuarial soundness of the fund,
				  the board may temporarily suspend new enrollment in the program.
(b) If the comptroller determines that the
				  program is financially infeasible, the comptroller shall notify the governor
				  and the legislature and recommend that the program be modified or
				  terminated.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter L - PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II › Section 7.141 - Effect of Program Termination on Contract

Current through Reg. 49, No. 28; July 12, 2024
(a) A prepaid tuition contract remains in
				  effect after the program is terminated if, when the program is terminated, the
				  beneficiary:
(1) has been accepted by or is
				  enrolled at a general academic teaching institution, two-year institution of
				  higher education, private or independent institution of higher education,
				  medical and dental unit, career school, or accredited out-of-state institution
				  of higher education; or
(2) is
				  projected to graduate from high school not later than the third anniversary of
				  the date the program is terminated.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter L - PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II › Section 7.142 - Statement Regarding Status of Prepaid Tuition Contract

Current through Reg. 49, No. 28; July 12, 2024
(a) Not later than January 31 of each year,
				  the plan manager shall make available online without charge to each purchaser a
				  statement of:
(1) the amount paid by the
				  purchaser under the prepaid tuition contract;
(2) the total number of each type of tuition
				  unit covered by the contract at any one time;
(3) the number of each type of tuition unit
				  remaining under the contract;
(4)
				  the number of each type of tuition unit that has met the three-year holding
				  period;
(5) the value of the
				  purchasers' tuition units if redeemed at a general academic teaching
				  institution or two-year institution of higher education designated for that
				  year by the purchaser in the time and manner required by the board, not to
				  exceed five institutions, with such information being provided in the tuition
				  unit redemption chart developed pursuant to §
											7.125(d) of this
				  title (relating to Redemption of Tuition Units); and
(6) any other information the board
				  determines is necessary or appropriate.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter L - PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II › Section 7.144 - Gift Contributions

Current through Reg. 49, No. 28; July 12, 2024
(a) A person or
				  entity may purchase tuition units for a beneficiary designated in an existing
				  prepaid tuition contract by paying an amount referred to as a "gift
				  contribution."
(b) A gift
				  contribution may purchase additional tuition units or, in the case of a prepaid
				  tuition contract using the installment plan for purchases, the gift
				  contribution may be applied to current or future installment payments covered
				  by the prepaid tuition contract.
(c) If the prepaid tuition contract uses an
				  installment plan for purchases, the gift contribution will be applied to the
				  next payment(s) due under the installment plan, unless the plan manager
				  receives other written instructions from the purchaser of the existing prepaid
				  tuition contract. Gift contributions may be used to reduce principal under an
				  installment plan, reduce the amount or number of monthly payments, or to
				  purchase additional lump sum tuition units, at the option of the
				  purchaser.
(d) If a gift
				  contribution results in an account balance that exceeds the value equivalent of
				  600 Type I tuition units or any other limit that might be imposed under
				  Internal Revenue Code, §529, the excess contribution amount will be
				  returned to the contributor.
(e)
				  Persons or entities may make gift contributions to an established prepaid
				  tuition account at any time, including outside the enrollment period.
(f) The tuition unit price for any lump sum
				  gift contributions will be the tuition unit price in effect for the sales
				  period when the payment is actually received by the plan manager. If the gift
				  contribution is applied to make installment plan purchases that are due under
				  the contract, the gift contribution will be applied at the price established in
				  the prepaid tuition contract for the installment payments.
(g) Tuition units purchased by gift
				  contribution and any installment payments made by gift contribution that are
				  credited to an existing prepaid tuition contract account will be owned by, and
				  subject to the direction and control of, the purchaser of the existing prepaid
				  tuition contract. Such tuition units will not be owned by, or under the
				  direction or control of, the person or entity making the gift
				  contribution.
(h) A person or
				  entity making a gift contribution and any designated beneficiary may not
				  directly or indirectly direct the investment of any contributions to, or
				  earnings on, the account.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter L - PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II › Section 7.145 - Marketing Considerations

Current through Reg. 49, No. 28; July 12, 2024
(a) The program
				  will be marketed in a manner that promotes the participation goals and targets
				  of the most recent revision of "Closing the Gaps," the state's master plan for
				  higher education.
(b) The program
				  will seek strategies that promote enrollment in the program by persons likely
				  to qualify for federal earned income tax credits.
(c) The executive director may establish
				  workgroups as necessary to identify enrollment barriers, solicit input from key
				  stakeholders, and recommend initiatives to enhance program participation,
				  especially for purchasers and beneficiaries eligible for the Texas Save and
				  Match program. The workgroups may include, without limitation, representatives
				  from such agencies as the Health and Human Services Commission, Texas Workforce
				  Commission, the Texas Higher Education Coordinating Board, other agencies,
				  community organizations, and constituencies interested in promoting higher
				  education.
(d) The executive
				  director may use employees of the executive director to conduct or assist in
				  conducting marketing efforts on behalf of the board.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter M - TEXAS SAVE AND MATCH PROGRAM › Section 7.161 - Purpose

Current through Reg. 49, No. 28; July 12, 2024
The Texas Save and Match Program is created to increase
					 access to higher education by encouraging families to save for higher education
					 expenses.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter M - TEXAS SAVE AND MATCH PROGRAM › Section 7.162 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
The following words and terms, when used in this
					 subchapter, shall have the following meanings, unless the context clearly
					 indicates otherwise.
(1) Accredited
				  out-of-state institution of higher education, career school, general academic
				  teaching institution, private or independent institution of higher education,
				  and two-year institution of higher education have the meanings assigned by
				  Education Code, §
										54.751.
(2) Beneficiary--A beneficiary on whose
				  behalf a purchaser enters into a prepaid tuition contract with the board under
				  Education Code, Chapter 54, Subchapter H or for whom an account owner opens a
				  savings trust account under Education Code, Chapter 54, Subchapter G.
(3) Board--Prepaid Higher Education Tuition
				  Board.
(4) Fund--Texas Save and
				  Match Trust Fund established under Education Code, §
										54.808.
(5) Match account--An allocation of funds or
				  tuition units from an account, fund, or contract owned and maintained by the
				  board or program entity that has been awarded to a participant on behalf of a
				  designated beneficiary.
(6)
				  Nonprofit scholarship organization--An organization described in Internal
				  Revenue Code of 1986, §501(c)(3), and exempt from taxation under
				  §501(a) of that code that operates a scholarship program that benefits
				  beneficiaries who are residents of this state.
(7) Participant--A purchaser of a prepaid
				  tuition contract or account owner of a savings trust account who has been
				  awarded a match account under the program.
(8) Prepaid tuition contract--A contract
				  entered into under Education Code, Chapter 54, Subchapter H or I. Prepaid
				  tuition contract includes Texas Tuition Promise Fund contracts or any future
				  higher education prepaid tuition program established by the Texas Prepaid
				  Higher Education Tuition Board under Education Code, Chapter 54, Subchapter
				  H.
(9) Program--Texas Save and
				  Match Program established under Education Code, §
										54.802.
(10) Program entity--Texas Match the Promise
				  FoundationSM, a Texas nonprofit corporation, or any
				  future tax-exempt charitable organization established by law to implement the
				  program.
(11) Savings trust
				  account--A savings trust account established under Education Code, Chapter 54,
				  Subchapter G or I. Savings trust account includes accounts in the Texas College
				  Savings Plan and the LoneStar 529 Plan or any future higher education savings
				  plan established by the Texas Prepaid Higher Education Tuition Board under
				  Education Code, Chapter 54, Subchapter G.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter M - TEXAS SAVE AND MATCH PROGRAM › Section 7.163 - Texas Save and Match Program Administration

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  The board, in cooperation with the program entity, administers the Texas Save
				  and Match Program, under which money contributed to a savings trust account by
				  an account owner or paid by a purchaser under a prepaid tuition contract on
				  behalf of an eligible beneficiary may be matched with:
(1) contributions made by any person to the
				  program entity for use in making additional savings trust account contributions
				  for a beneficiary or in purchasing additional tuition units for a beneficiary
				  under a prepaid tuition contract; or
(2) money appropriated by the legislature for
				  the program or received under Education Code, §
											54.802(a)(7)
				  to be used by the board to make additional savings trust account contributions
				  for a beneficiary or to purchase additional tuition units for a beneficiary
				  under a prepaid tuition contract.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter M - TEXAS SAVE AND MATCH PROGRAM › Section 7.164 - Certain Exemptions for the Board, Program Entity, and Nonprofit Scholarship Organizations

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Notwithstanding any of the provisions of this chapter, the board, the program
				  entity, or a nonprofit scholarship organization:
(1) is not required to name a designated
				  beneficiary when entering into a prepaid tuition contract or opening a savings
				  trust account;
(2) may change the
				  designated beneficiary of a prepaid tuition contract or savings trust account
				  to another beneficiary who is not a family member of the previous
				  beneficiary;
(3) may purchase an
				  unlimited number of tuition units for a prepaid tuition contract and may
				  contribute an unlimited amount of funds to a savings trust account, provided
				  that the board, program entity, or nonprofit scholarship organization is the
				  purchaser of the prepaid tuition contract or account owner of the savings trust
				  account and provided that such contributions or purchases do not result in any
				  individual beneficiary's aggregate balance exceeding the limit in §
											7.103
				  of this title (relating to Tax Benefits and Securities Laws Exemptions);
				  and
(4) may enter into a prepaid
				  tuition contract during the enrollment period established for beneficiaries who
				  are newborn infants under §
											7.122(6)
				  of this title (relating to Definitions). The three-year holding period begins
				  on the date each unit is paid in full.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter M - TEXAS SAVE AND MATCH PROGRAM › Section 7.165 - Initial Eligibility for Participation in Program Applicable to All Participants

Current through Reg. 49, No. 28; July 12, 2024
To be initially eligible to participate in the program, a
					 beneficiary, at the time a prepaid tuition contract is entered into on the
					 beneficiary's behalf or a savings trust account is opened on the beneficiary's
					 behalf, as applicable, must be:
(1) a
				  resident of this state; and
(2) a
				  dependent for purposes of Internal Revenue Code of 1986, §152, of a
				  resident of this state.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter M - TEXAS SAVE AND MATCH PROGRAM › Section 7.166 - Initial Eligibility for Participation in Program Applicable to Awards Made by the Board

Current through Reg. 49, No. 28; July 12, 2024
(a) No savings
				  trust account or prepaid tuition contract may be matched as provided in §
										7.163(a)(2)
				  of this title (relating to Texas Save and Match Program Administration) unless:
(1) the participant is the account owner of a
				  savings trust account or the purchaser of a prepaid tuition contract;
(2) the designated beneficiary is under 15
				  years of age; and
(3) the
				  designated beneficiary is eligible for free or reduced-price meals under the
				  national free or reduced-price breakfast and lunch program during the current
				  or most recent school year.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter M - TEXAS SAVE AND MATCH PROGRAM › Section 7.167 - Award Process for Awards Made by the Board

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  In any year in which sufficient funds are available, the board may announce the
				  availability and amount of awards and may create a procedure for awarding match
				  accounts.
(b) By submitting an
				  application, a participant agrees to all the terms and conditions set forth by
				  the board, Education Code, Chapter 54, and this subchapter.
(c) Only prepaid tuition units paid in full
				  or college savings on deposit at the time of the application deadline are
				  eligible for match.
(d) The board
				  or executive director may conduct or request investigations to determine
				  initial and continuing eligibility without obtaining additional consent from
				  the participant when considering eligibility for an award and after an award
				  has been made.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter M - TEXAS SAVE AND MATCH PROGRAM › Section 7.168 - Redemption of Awards Made by the Board

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Distributions from match accounts will be made directly to the eligible
				  educational institution upon proof of the beneficiary's enrollment and a valid
				  invoice from the institution.
(b) A
				  match account that is linked to a prepaid tuition contract may only be used to
				  pay undergraduate tuition and required fees.
(c) A match account that is linked to a
				  savings trust account can only be used to pay qualified higher education
				  expenses.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter M - TEXAS SAVE AND MATCH PROGRAM › Section 7.169 - Limitations Applicable to All Participants

Current through Reg. 49, No. 28; July 12, 2024
(a) A match account is owned by the board or
				  program entity until the funds or tuition units are distributed to an eligible
				  educational institution.
(b) Funds
				  or tuition units that are awarded or allocated to a match account, including
				  any net earnings or losses related to that account if applicable, are forfeited
				  and revert to the board or program entity on the occurrence of any of the
				  following:
(1) the 10th anniversary of the
				  date the beneficiary is projected to graduate from high school, except that
				  time spent by the beneficiary as an active duty member of the United States
				  armed services tolls this period;
(2) a change of beneficiary by the
				  participant;
(3) the closing of
				  participant's savings trust account or prepaid tuition contract resulting from
				  a nonqualified withdrawal;
(4) a
				  nonqualified withdrawal from participant's prepaid tuition contract that
				  results in the sum of the participant's tuition unit balance plus all prior
				  tuition units redeemed from participant's contract being less than the amount
				  that had been matched;
(5) a
				  nonqualified withdrawal from participant's savings trust account that results
				  in the sum of the participant's savings account balance plus all prior
				  qualified distributions from participant's savings trust account being less
				  than the match account balance as adjusted for earnings;
(6) the successful completion by the
				  beneficiary of an associate or bachelor's degree program;
(7) transfer of funds from the participant's
				  account to another qualified tuition program of any state that meets the
				  requirements of Internal Revenue Code of 1986, §529;
(8) fraud or misrepresentation by the
				  participant;
(9) the death or
				  permanent disability of the beneficiary (unable to attend eligible educational
				  institution); or
(10) any other
				  event the board or program entity determines would be inconsistent with the
				  program's purposes.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter M - TEXAS SAVE AND MATCH PROGRAM › Section 7.170 - Match Account Administration by Plan Manager

Current through Reg. 49, No. 28; July 12, 2024
(a) Information about the tuition units or
				  match funds allocated or awarded to an eligible beneficiary by the board or
				  program entity shall be made available to the participant and, to the extent
				  possible, shall be included in the periodic statements for participant
				  accounts.
(b) Match account tuition
				  units may not be redeemed until the participant authorizes redemption of the
				  participant's tuition units in writing.
(c) Distributions from a match account will
				  be reported to the Internal Revenue Service to the extent required by federal
				  law.
Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 7 - PREPAID HIGHER EDUCATION TUITION PROGRAM › Subchapter M - TEXAS SAVE AND MATCH PROGRAM › Section 7.171 - Texas Save and Match Trust Fund; Agreements between Board and Program Entity Regarding Program Entity Funds

Current through Reg. 49, No. 28; July 12, 2024
The Comptroller will present an annual budget to the board
					 and program entity for approval prior to the start of each fiscal year.
					 Operating and marketing expenses will be paid by the board and program entity
					 from appropriated funds or contributions on a pro-rata share based on estimated
					 funds held in each fund at the beginning of the fiscal year. Costs for
					 investment management or consultant services will be allocated to the board and
					 the program entity based on funds invested.
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 7.183 - Participation Agreement

Current through Reg. 49, No. 28; July 12, 2024
(a) The Board will
				  designate the start date of the Texas ABLE Program. The Board may begin
				  enrolling participants as soon as reasonably practical to allow sufficient time
				  for successful development and implementation of the Program. To enroll in the
				  Program, a participant shall enter into a participation agreement with the
				  Board to establish an ABLE account for an Eligible Individual.
(b) The participation agreement may include,
				  but is not limited to, the following terms:
(1) the requirements and applicable
				  restrictions for:
(A) opening an ABLE
				  account;
(B) making contributions
				  to an ABLE account; and
(C)
				  limiting the directing of the investment of contributions, earnings, or balance
				  of the account, as provided under Internal Revenue Code, §529A.
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 7.184 - Designated Beneficiary and Eligible Individual

Current through Reg. 49, No. 28; July 12, 2024
(a) An eligible individual must be a resident
				  of Texas at the time the ABLE account is established. The Board may act to
				  accept out-of-state residents into the Program to the extent allowed by
				  law.
(b) If at any time, the
				  Program becomes aware that the eligible individual no longer meets any
				  residency requirements, if applicable, or no longer meets the requirements of
				  Internal Revenue Code, §529A, the individual's ABLE account will be closed
				  and any available funds will be refunded to the participant on behalf of the
				  designated beneficiary. In the event that available funds are refunded by the
				  Program because of failure to meet residency requirements or failure to meet
				  the requirements of Internal Revenue Code, §529A, the Program will provide
				  advance written or electronic notification to the participant of a pending
				  refund within a reasonable time, but not less than thirty (30) days, prior to
				  the refund by the Program.
(c) The
				  participant shall recertify that the designated beneficiary is an eligible
				  individual:
(1) periodically as required by
				  the Board in a form acceptable to the Board, or
(2) upon request to reestablish a closed
				  account.
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 7.185 - Participant

Current through Reg. 49, No. 28; July 12, 2024
(a) The participant must be the designated
				  beneficiary or a fiduciary authorized by law to act on behalf of the designated
				  beneficiary, including a parent, guardian, or trustee. The Board may limit the
				  types of fiduciaries allowed to be participants.
(b) Because a designated beneficiary is
				  limited to one ABLE account, the participant who applies for enrollment must
				  have the legal authority to act on behalf of a beneficiary. The Board may
				  determine who has legal authority to apply for enrollment on behalf of a
				  designated beneficiary, and may require written consent from individuals who
				  have legal authority to act on behalf of a beneficiary.
(c) A participant who is not the designated
				  beneficiary may not have or acquire a beneficial interest in an
				  account.
(d) A participant who is
				  not the designated beneficiary must administer the account for the benefit of
				  the designated beneficiary.
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 7.186 - Fees and Other Charges

Current through Reg. 49, No. 28; July 12, 2024
(a) As authorized
				  by Education Code, Subchapter J, §54.9045, the Board may collect, or
				  authorize the collection of, fees and other charges in connection with any
				  agreement, contract, or transaction relating to the Texas ABLE Program in
				  amounts not exceeding the amount necessary to recover the cost of establishing
				  and maintaining the Program.
(b)
				  The Board may assess, or authorize the assessment of, fees and other charges to
				  an ABLE account to administer the Program.
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 7.187 - Contributions

Current through Reg. 49, No. 28; July 12, 2024
(a) Any person may
				  make contributions to an ABLE account for a taxable year, for the benefit of a
				  designated beneficiary who is an eligible individual for such taxable year. Any
				  contributions to an ABLE account, excluding any excess contributions, are an
				  asset of the account for the benefit of the designated beneficiary.
(b) No contributions will be accepted for an
				  ABLE account unless:
(1) the contribution is
				  in U.S. dollars in the form of a check, money order, cashier's check, automatic
				  contribution plan, ACH, including SSI or SSDI electronic deposits to the extent
				  allowable by law, or payroll deduction;
(2) the designated beneficiary is an eligible
				  individual during the taxable year; and
(3) such contribution is not an excess
				  contribution as defined in these rules.
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 7.188 - Distributions

Current through Reg. 49, No. 28; July 12, 2024
(a) A request for a distribution may be
				  submitted to the Program in a format approved by the Board. The Program may
				  request additional information as necessary to process a
				  distribution.
(b) The participant
				  is responsible for submitting correct information regarding a distribution to a
				  payee.
(c) The Program is not
				  responsible for any late fees or other fees or penalties that may be due to a
				  payee related to the distribution.
(d) The participant is responsible for
				  maintaining sufficient records regarding the distribution adequate to
				  substantiate to the Internal Revenue Service or the Social Security
				  Administration that a distribution is for a qualified disability
				  expense.
(e) Any taxes or penalties
				  due the Internal Revenue Service for distributions that are not qualified
				  disability expenses are the responsibility of the participant.