S.B. No. 377
AN ACT
relating to the Texas Achieving a Better Life Experience (ABLE)
Program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 54.902(4) and (6), Education Code, are
amended to read as follows:
(4) "Designated beneficiary" means a person [resident
of this state] with a disability who:
(A) is an eligible individual;
(B) is [and] named as the designated beneficiary
of an ABLE account; and
(C) meets any residency requirements established
by the board.
(6) "Financial institution" means 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.
SECTION 2. Section 54.904(b), Education Code, is amended to
read as follows:
(b) The board has all powers necessary or proper to carry
out its duties under this subchapter and to effectuate the purposes
of this subchapter, including the power to:
(1) sue and be sued;
(2) enter into contracts and other necessary
instruments;
(3) enter into agreements or other transactions with
the United States, state agencies, and other entities as necessary,
including:
(A) an agreement to engage services through a
consortium of states; and
(B) an agreement with another entity to act as
plan manager;
(4) appear on its own behalf before governmental
agencies;
(5) contract for necessary goods and services,
including specifying in the contract duties to be performed by the
provider of a good or service that are a part of or are in addition
to the person's primary duties under the contract;
(6) contract with another state or a consortium of
states that administers a qualified ABLE program as authorized by
Section 529A, Internal Revenue Code, to provide [residents of this
state with] access in this state to a qualified ABLE program;
(7) engage the services of private consultants,
trustees, records administrators, managers, legal counsel,
auditors, and other appropriate parties or organizations for
administrative or technical assistance;
(8) participate in any government program;
(9) impose fees and charges;
(10) develop marketing plans or promotional materials
or contract with a consultant to market the program;
(11) make reports;
(12) purchase liability insurance covering the board
and employees and agents of the board;
(13) make changes to the program as necessary for the
participants in the program to obtain or maintain federal income
tax benefits or treatment provided by Section 529A, Internal
Revenue Code, and exemptions under federal securities laws; [and]
(14) establish other policies, procedures, and
eligibility criteria to implement this subchapter; and
(15) adopt rules establishing residency requirements
for a designated beneficiary, if determined appropriate.
SECTION 3. Sections 54.905(b), (c), (f), and (g), Education
Code, are amended to read as follows:
(b) The board at least annually shall establish and review
the asset allocation and selection of the underlying investments of
the ABLE program. The board may delegate this duty to a financial
institution, including a financial institution retained by another
state or a consortium of states.
(c) The board may delegate to duly appointed financial
institutions, including a financial institution retained by
another state or a consortium of states, authority to act on behalf
of the board in the investment and reinvestment of all or part of
the funds and may also delegate to those financial institutions the
authority to act on behalf of the board in the holding, purchasing,
selling, assigning, transferring, or disposing of any or all of the
securities and investments in which the funds in the Texas ABLE
savings plan account have been invested, as well as the proceeds
from the investment of those funds.
(f) In the board's discretion, the board may contract with:
(1) one or more financial institutions, including a
financial institution retained by another state or a consortium of
states, or other entities to serve as plan managers; [manager] and
(2) one or more financial institutions, including a
financial institution retained by another state or a consortium of
states, to invest the money in ABLE accounts.
(g) A contract between the board and a financial institution
or other entity to act as plan manager under this subchapter may be
for a term of up to five years and may be renewable.
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, 2017.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 377 passed the Senate on
April 3, 2017, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 377 passed the House on
May 19, 2017, by the following vote: Yeas 143, Nays 1, two
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor