| 6 | 4 | | AN ACT |
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| 7 | 5 | | relating to the Texas Achieving a Better Life Experience (ABLE) |
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| 8 | 6 | | Program. |
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| 9 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 8 | | SECTION 1. Sections 54.902(4) and (6), Education Code, are |
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| 11 | 9 | | amended to read as follows: |
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| 12 | 10 | | (4) "Designated beneficiary" means a person [resident |
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| 13 | 11 | | of this state] with a disability who: |
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| 14 | 12 | | (A) is an eligible individual; |
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| 15 | 13 | | (B) is [and] named as the designated beneficiary |
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| 16 | 14 | | of an ABLE account; and |
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| 17 | 15 | | (C) meets any residency requirements established |
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| 18 | 16 | | by the board. |
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| 19 | 17 | | (6) "Financial institution" means a bank, a trust |
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| 20 | 18 | | company, a depository trust company, an insurance company, a |
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| 21 | 19 | | broker-dealer, a registered investment company or investment |
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| 22 | 20 | | manager, the Texas Treasury Safekeeping Trust Company, or another |
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| 23 | 21 | | similar financial institution authorized to transact business in |
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| 24 | 22 | | this state. |
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| 25 | 23 | | SECTION 2. Section 54.904(b), Education Code, is amended to |
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| 26 | 24 | | read as follows: |
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| 27 | 25 | | (b) The board has all powers necessary or proper to carry |
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| 28 | 26 | | out its duties under this subchapter and to effectuate the purposes |
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| 29 | 27 | | of this subchapter, including the power to: |
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| 30 | 28 | | (1) sue and be sued; |
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| 31 | 29 | | (2) enter into contracts and other necessary |
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| 32 | 30 | | instruments; |
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| 33 | 31 | | (3) enter into agreements or other transactions with |
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| 34 | 32 | | the United States, state agencies, and other entities as necessary, |
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| 35 | 33 | | including: |
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| 36 | 34 | | (A) an agreement to engage services through a |
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| 37 | 35 | | consortium of states; and |
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| 38 | 36 | | (B) an agreement with another entity to act as |
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| 39 | 37 | | plan manager; |
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| 40 | 38 | | (4) appear on its own behalf before governmental |
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| 41 | 39 | | agencies; |
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| 42 | 40 | | (5) contract for necessary goods and services, |
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| 43 | 41 | | including specifying in the contract duties to be performed by the |
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| 44 | 42 | | provider of a good or service that are a part of or are in addition |
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| 45 | 43 | | to the person's primary duties under the contract; |
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| 46 | 44 | | (6) contract with another state or a consortium of |
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| 47 | 45 | | states that administers a qualified ABLE program as authorized by |
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| 48 | 46 | | Section 529A, Internal Revenue Code, to provide [residents of this |
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| 49 | 47 | | state with] access in this state to a qualified ABLE program; |
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| 50 | 48 | | (7) engage the services of private consultants, |
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| 51 | 49 | | trustees, records administrators, managers, legal counsel, |
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| 52 | 50 | | auditors, and other appropriate parties or organizations for |
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| 53 | 51 | | administrative or technical assistance; |
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| 54 | 52 | | (8) participate in any government program; |
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| 55 | 53 | | (9) impose fees and charges; |
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| 56 | 54 | | (10) develop marketing plans or promotional materials |
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| 57 | 55 | | or contract with a consultant to market the program; |
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| 58 | 56 | | (11) make reports; |
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| 59 | 57 | | (12) purchase liability insurance covering the board |
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| 60 | 58 | | and employees and agents of the board; |
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| 61 | 59 | | (13) make changes to the program as necessary for the |
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| 62 | 60 | | participants in the program to obtain or maintain federal income |
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| 63 | 61 | | tax benefits or treatment provided by Section 529A, Internal |
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| 64 | 62 | | Revenue Code, and exemptions under federal securities laws; [and] |
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| 65 | 63 | | (14) establish other policies, procedures, and |
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| 66 | 64 | | eligibility criteria to implement this subchapter; and |
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| 67 | 65 | | (15) adopt rules establishing residency requirements |
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| 68 | 66 | | for a designated beneficiary, if determined appropriate. |
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| 69 | 67 | | SECTION 3. Sections 54.905(b), (c), (f), and (g), Education |
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| 70 | 68 | | Code, are amended to read as follows: |
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| 71 | 69 | | (b) The board at least annually shall establish and review |
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| 72 | 70 | | the asset allocation and selection of the underlying investments of |
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| 73 | 71 | | the ABLE program. The board may delegate this duty to a financial |
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| 74 | 72 | | institution, including a financial institution retained by another |
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| 75 | 73 | | state or a consortium of states. |
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| 76 | 74 | | (c) The board may delegate to duly appointed financial |
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| 77 | 75 | | institutions, including a financial institution retained by |
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| 78 | 76 | | another state or a consortium of states, authority to act on behalf |
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| 79 | 77 | | of the board in the investment and reinvestment of all or part of |
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| 80 | 78 | | the funds and may also delegate to those financial institutions the |
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| 81 | 79 | | authority to act on behalf of the board in the holding, purchasing, |
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| 82 | 80 | | selling, assigning, transferring, or disposing of any or all of the |
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| 83 | 81 | | securities and investments in which the funds in the Texas ABLE |
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| 84 | 82 | | savings plan account have been invested, as well as the proceeds |
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| 85 | 83 | | from the investment of those funds. |
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| 86 | 84 | | (f) In the board's discretion, the board may contract with: |
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| 87 | 85 | | (1) one or more financial institutions, including a |
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| 88 | 86 | | financial institution retained by another state or a consortium of |
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| 89 | 87 | | states, or other entities to serve as plan managers; [manager] and |
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| 90 | 88 | | (2) one or more financial institutions, including a |
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| 91 | 89 | | financial institution retained by another state or a consortium of |
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| 92 | 90 | | states, to invest the money in ABLE accounts. |
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| 93 | 91 | | (g) A contract between the board and a financial institution |
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| 94 | 92 | | or other entity to act as plan manager under this subchapter may be |
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| 95 | 93 | | for a term of up to five years and may be renewable. |
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| 96 | 94 | | SECTION 4. This Act takes effect immediately if it receives |
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| 97 | 95 | | a vote of two-thirds of all the members elected to each house, as |
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| 98 | 96 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 99 | 97 | | Act does not receive the vote necessary for immediate effect, this |
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| 100 | 98 | | Act takes effect September 1, 2017. |
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