Bill Text: TX SB1141 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to the establishment and administration of the qualified ABLE program; granting authority to impose a fee.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-03-17 - Referred to Business & Commerce [SB1141 Detail]
Download: Texas-2015-SB1141-Introduced.html
84R10683 LED-F | ||
By: Watson | S.B. No. 1141 |
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relating to the establishment and administration of the qualified | ||
ABLE program; granting authority to impose a fee. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Title 11, Human Resources Code, is amended by | ||
adding Chapter 162 to read as follows: | ||
CHAPTER 162. QUALIFIED ABLE PROGRAM | ||
Sec. 162.001. DEFINITIONS. In this chapter: | ||
(1) "ABLE account" means an achieving a better life | ||
experience (ABLE) account established under the qualified ABLE | ||
program for the purpose of funding qualified disability expenses of | ||
a designated beneficiary. | ||
(2) "Designated beneficiary" means an individual with | ||
a disability whose qualified disability expenses are expected to be | ||
paid from an ABLE account. | ||
(3) "Financial institution" means a bank, trust | ||
company, savings and loan association, credit union, | ||
broker-dealer, mutual fund, insurance company, or other similar | ||
financial institution authorized to transact business in this | ||
state. | ||
(4) "Qualified ABLE program" and "qualified | ||
disability expenses" have the meanings assigned to those terms by | ||
Section 529A, Internal Revenue Code of 1986. | ||
Sec. 162.002. QUALIFIED ABLE PROGRAM; POWERS AND DUTIES OF | ||
COMPTROLLER. (a) The comptroller shall establish and administer | ||
the qualified ABLE program in accordance with this chapter. The | ||
comptroller shall take all actions required to keep the plan in | ||
compliance with this chapter and to ensure that the plan qualifies | ||
as a qualified ABLE program under Section 529A, Internal Revenue | ||
Code of 1986. | ||
(b) The comptroller has the powers necessary or proper to | ||
carry out this chapter. The comptroller may: | ||
(1) adopt rules to implement this chapter; | ||
(2) enter into contracts and other necessary | ||
instruments; | ||
(3) solicit and accept gifts, grants, loans, and other | ||
aid from any source or participate in any other way in any | ||
government program to carry out this chapter; | ||
(4) impose administrative fees and charge fees and | ||
expenses to the ABLE accounts held under the program or to persons | ||
who establish or own ABLE accounts; | ||
(5) make reports; and | ||
(6) retain financial institutions to serve as plan | ||
managers, employees, experts, and consultants. | ||
Sec. 162.003. OPERATION OF PROGRAM; ACCOUNTS HELD IN TRUST. | ||
(a) The comptroller shall administer the qualified ABLE program to | ||
enable individuals to save private funds for the purpose of | ||
supporting an individual with a disability by establishing an ABLE | ||
account in the program. | ||
(b) Money contributed to an ABLE account and earnings on the | ||
account are held in trust by the comptroller for the sole benefit of | ||
the account owner and designated beneficiary. | ||
Sec. 162.004. SELECTION OF FINANCIAL INSTITUTION AS PLAN | ||
MANAGER. The comptroller may contract with one or more financial | ||
institutions to serve as plan manager and to invest the money in | ||
ABLE accounts in the same manner as provided under Subchapter G, | ||
Chapter 54, Education Code. | ||
Sec. 162.005. ADMINISTRATION OF ACCOUNTS. (a) The | ||
comptroller or plan manager shall provide separate accounting for | ||
each ABLE account. | ||
(b) A savings trust account may not be: | ||
(1) assigned for the benefit of creditors; | ||
(2) used as security or collateral for any loan; or | ||
(3) otherwise subject to alienation, sale, transfer, | ||
assignment, pledge, encumbrance, or charge. | ||
Sec. 162.006. ABLE ACCOUNT. (a) A person may establish an | ||
ABLE account under this chapter and make contributions to the | ||
account for the purpose of supporting a designated beneficiary. | ||
(b) Except as provided by Subsection (c) or as otherwise | ||
permitted by Section 529A, Internal Revenue Code of 1986, the | ||
designated beneficiary of an ABLE account is the owner of the | ||
account. | ||
(c) If the designated beneficiary of an ABLE account is | ||
younger than 18 years of age or a ward with respect to whom a | ||
guardian of the estate has been appointed, the parent or guardian of | ||
the designated beneficiary is the owner of the account. | ||
(d) The designated beneficiary of an ABLE account must be a | ||
resident of this state. The comptroller shall determine the | ||
residence of the designated beneficiary. | ||
Sec. 162.007. CONTRIBUTIONS. Any person may make | ||
contributions to the ABLE account to meet the qualified disability | ||
expenses of the designated beneficiary of the account, in | ||
accordance with this chapter and Section 529A, Internal Revenue | ||
Code of 1986. | ||
SECTION 2. As soon as practicable after the effective date | ||
of this Act, the comptroller shall adopt the rules necessary to | ||
implement the change in law made by this Act. | ||
SECTION 3. If before implementing any provision of this Act | ||
a state agency determines that a waiver or authorization from a | ||
federal agency is necessary for implementation of that provision, | ||
the agency affected by the provision shall request the waiver or | ||
authorization and may delay implementing that provision until the | ||
waiver or authorization is granted. | ||
SECTION 4. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2015. |