Texas House Bill HB2947

Texas 2019 - 86th Regular

Caption

Relating to eligible participants in the Texas Achieving a Better Life Experience (ABLE) Program.

Impact

The proposed amendment allows a broader range of fiduciaries, including parents and legal guardians, to serve as participants if the designated beneficiary is unable to exert signature authority over the account. This change is significant because it enhances the ability of individuals with disabilities to manage their finances through the assistance of trusted family members or custodial figures. By making such provisions, the bill seeks to improve financial independence and security among participants, aligning the program more closely with the operational guidelines of the Internal Revenue Code as outlined in Section 529A.

Summary

House Bill 2947 focuses on expanding the eligibility criteria for participants in the Texas Achieving a Better Life Experience (ABLE) Program. The bill amends Section 54.910(b) of the Education Code, clarifying who is considered an eligible participant in the program. The ABLE Program is designed to assist individuals with disabilities by allowing them to save money in a tax-advantaged account without jeopardizing their eligibility for certain public benefits. This legislation aims to further facilitate access for those beneficiaries who may not have the capacity to manage their own accounts directly.

Contention

While the bill appears to have widespread support as a positive change for the disabled community, there may still be contentions regarding oversight and the potential for exploitation of fiduciary roles. Stakeholders could have varying opinions on whether these changes adequately balance the need for accessibility with sufficient safeguards to protect against misuse. As such, some advocates may raise concerns about ensuring that the support provided to beneficiaries does not lead to complications in financial distribution or management. Additionally, discussions around the bill will likely address how these types of amendments are received in the broader legislative context and whether they will prompt further reforms.