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A BILL TO BE ENTITLED
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AN ACT
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relating to the Texas Achieving a Better Life Experience (ABLE) |
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Program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 54.902(4) and (6), Education Code, are |
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amended to read as follows: |
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(4) "Designated beneficiary" means a person [resident
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of this state] with a disability who: |
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(A) is an eligible individual; |
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(B) is [and] named as the designated beneficiary |
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of an ABLE account; and |
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(C) meets any residency requirements established |
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by the board. |
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(6) "Financial institution" means a bank, a trust |
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company, a depository trust company, an insurance company, a |
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broker-dealer, a registered investment company or investment |
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manager, the Texas Treasury Safekeeping Trust Company, or another |
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similar financial institution authorized to transact business in |
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this state. |
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SECTION 2. Section 54.904(b), Education Code, is amended to |
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read as follows: |
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(b) The board has all powers necessary or proper to carry |
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out its duties under this subchapter and to effectuate the purposes |
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of this subchapter, including the power to: |
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(1) sue and be sued; |
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(2) enter into contracts and other necessary |
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instruments; |
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(3) enter into agreements or other transactions with |
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the United States, state agencies, and other entities as necessary, |
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including: |
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(A) an agreement to engage services through a |
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consortium of states; and |
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(B) an agreement with another entity to act as |
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plan manager; |
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(4) appear on its own behalf before governmental |
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agencies; |
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(5) contract for necessary goods and services, |
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including specifying in the contract duties to be performed by the |
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provider of a good or service that are a part of or are in addition |
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to the person's primary duties under the contract; |
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(6) contract with another state or a consortium of |
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states that administers a qualified ABLE program as authorized by |
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Section 529A, Internal Revenue Code, to provide [residents of this
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state with] access in this state to a qualified ABLE program; |
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(7) engage the services of private consultants, |
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trustees, records administrators, managers, legal counsel, |
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auditors, and other appropriate parties or organizations for |
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administrative or technical assistance; |
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(8) participate in any government program; |
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(9) impose fees and charges; |
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(10) develop marketing plans or promotional materials |
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or contract with a consultant to market the program; |
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(11) make reports; |
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(12) purchase liability insurance covering the board |
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and employees and agents of the board; |
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(13) make changes to the program as necessary for the |
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participants in the program to obtain or maintain federal income |
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tax benefits or treatment provided by Section 529A, Internal |
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Revenue Code, and exemptions under federal securities laws; [and] |
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(14) establish other policies, procedures, and |
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eligibility criteria to implement this subchapter; and |
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(15) adopt rules establishing residency requirements |
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for a designated beneficiary, if determined appropriate. |
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SECTION 3. Sections 54.905(b), (c), (f), and (g), Education |
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Code, are amended to read as follows: |
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(b) The board at least annually shall establish and review |
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the asset allocation and selection of the underlying investments of |
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the ABLE program. The board may delegate this duty to a financial |
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institution, including a financial institution retained by another |
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state or a consortium of states. |
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(c) The board may delegate to duly appointed financial |
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institutions, including a financial institution retained by |
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another state or a consortium of states, authority to act on behalf |
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of the board in the investment and reinvestment of all or part of |
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the funds and may also delegate to those financial institutions the |
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authority to act on behalf of the board in the holding, purchasing, |
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selling, assigning, transferring, or disposing of any or all of the |
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securities and investments in which the funds in the Texas ABLE |
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savings plan account have been invested, as well as the proceeds |
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from the investment of those funds. |
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(f) In the board's discretion, the board may contract with: |
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(1) one or more financial institutions, including a |
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financial institution retained by another state or a consortium of |
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states, or other entities to serve as plan managers; [manager] and |
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(2) one or more financial institutions, including a |
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financial institution retained by another state or a consortium of |
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states, to invest the money in ABLE accounts. |
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(g) A contract between the board and a financial institution |
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or other entity to act as plan manager under this subchapter may be |
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for a term of up to five years and may be renewable. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2017. |
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