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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment and administration of the qualified |
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ABLE program; granting authority to impose a fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 11, Human Resources Code, is amended by |
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adding Chapter 162 to read as follows: |
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CHAPTER 162. QUALIFIED ABLE PROGRAM |
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Sec. 162.001. DEFINITIONS. In this chapter: |
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(1) "ABLE account" means an achieving a better life |
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experience (ABLE) account established under the qualified ABLE |
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program for the purpose of funding qualified disability expenses of |
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a designated beneficiary. |
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(2) "Designated beneficiary" means an individual with |
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a disability whose qualified disability expenses are expected to be |
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paid from an ABLE account. |
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(3) "Financial institution" means a bank, trust |
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company, savings and loan association, credit union, |
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broker-dealer, mutual fund, insurance company, or other similar |
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financial institution authorized to transact business in this |
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state. |
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(4) "Qualified ABLE program" and "qualified |
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disability expenses" have the meanings assigned to those terms by |
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Section 529A, Internal Revenue Code of 1986. |
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Sec. 162.002. QUALIFIED ABLE PROGRAM; POWERS AND DUTIES OF |
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COMPTROLLER. (a) The comptroller shall establish and administer |
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the qualified ABLE program in accordance with this chapter. The |
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comptroller shall take all actions required to keep the plan in |
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compliance with this chapter and to ensure that the plan qualifies |
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as a qualified ABLE program under Section 529A, Internal Revenue |
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Code of 1986. |
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(b) The comptroller has the powers necessary or proper to |
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carry out this chapter. The comptroller may: |
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(1) adopt rules to implement this chapter; |
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(2) enter into contracts and other necessary |
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instruments; |
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(3) solicit and accept gifts, grants, loans, and other |
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aid from any source or participate in any other way in any |
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government program to carry out this chapter; |
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(4) impose administrative fees and charge fees and |
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expenses to the ABLE accounts held under the program or to persons |
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who establish or own ABLE accounts; |
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(5) make reports; and |
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(6) retain financial institutions to serve as plan |
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managers, employees, experts, and consultants. |
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Sec. 162.003. OPERATION OF PROGRAM; ACCOUNTS HELD IN TRUST. |
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(a) The comptroller shall administer the qualified ABLE program to |
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enable individuals to save private funds for the purpose of |
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supporting an individual with a disability by establishing an ABLE |
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account in the program. |
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(b) Money contributed to an ABLE account and earnings on the |
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account are held in trust by the comptroller for the sole benefit of |
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the account owner and designated beneficiary. |
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Sec. 162.004. SELECTION OF FINANCIAL INSTITUTION AS PLAN |
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MANAGER. The comptroller may contract with one or more financial |
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institutions to serve as plan manager and to invest the money in |
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ABLE accounts in the same manner as provided under Subchapter G, |
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Chapter 54, Education Code. |
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Sec. 162.005. ADMINISTRATION OF ACCOUNTS. (a) The |
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comptroller or plan manager shall provide separate accounting for |
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each ABLE account. |
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(b) A savings trust account may not be: |
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(1) assigned for the benefit of creditors; |
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(2) used as security or collateral for any loan; or |
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(3) otherwise subject to alienation, sale, transfer, |
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assignment, pledge, encumbrance, or charge. |
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Sec. 162.006. ABLE ACCOUNT. (a) A person may establish an |
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ABLE account under this chapter and make contributions to the |
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account for the purpose of supporting a designated beneficiary. |
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(b) Except as provided by Subsection (c) or as otherwise |
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permitted by Section 529A, Internal Revenue Code of 1986, the |
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designated beneficiary of an ABLE account is the owner of the |
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account. |
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(c) If the designated beneficiary of an ABLE account is |
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younger than 18 years of age or a ward with respect to whom a |
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guardian of the estate has been appointed, the parent or guardian of |
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the designated beneficiary is the owner of the account. |
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(d) The designated beneficiary of an ABLE account must be a |
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resident of this state. The comptroller shall determine the |
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residence of the designated beneficiary. |
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Sec. 162.007. CONTRIBUTIONS. Any person may make |
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contributions to the ABLE account to meet the qualified disability |
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expenses of the designated beneficiary of the account, in |
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accordance with this chapter and Section 529A, Internal Revenue |
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Code of 1986. |
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SECTION 2. As soon as practicable after the effective date |
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of this Act, the comptroller shall adopt the rules necessary to |
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implement the change in law made by this Act. |
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SECTION 3. If before implementing any provision of this Act |
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a state agency determines that a waiver or authorization from a |
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federal agency is necessary for implementation of that provision, |
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the agency affected by the provision shall request the waiver or |
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authorization and may delay implementing that provision until the |
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waiver or authorization is granted. |
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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, 2015. |