| (a) The Board will designate the start date of the
Texas ABLE Program. The Board may begin enrolling participants as
soon as reasonably practical to allow sufficient time for successful
development and implementation of the Program. To enroll in the Program,
a participant shall enter into a participation agreement with the
Board to establish an ABLE account for an Eligible Individual.
(b) The participation agreement may include, but is
not limited to, the following terms:
(1) the requirements and applicable restrictions for:
(A) opening an ABLE account;
(B) making contributions to an ABLE account; and
(C) limiting the directing of the investment of contributions,
earnings, or balance of the account, as provided under Internal Revenue
Code, §529A.
(2) The eligibility requirements for a participant
to enter into a participation agreement and the rights of the participant
and designated beneficiary, if other than the participant;
(3) administrative and other fees and charges applicable
to the ABLE account;
(4) the terms and conditions under which an ABLE account
or participation agreement may be modified, transferred, or terminated;
and
(5) any other terms and conditions the Board considers
necessary or appropriate, including those necessary to conform the
ABLE account to the requirements of Internal Revenue Code, §529A
and other applicable state or federal laws or requirements.
(c) The participant must provide the following information
on the participation agreement:
(1) the name, address, social security number or tax
identification number, telephone number, relationship to beneficiary,
and email, if any, of the participant;
(2) the name, address, date of birth, and social security
number of the designated beneficiary;
(3) an eligibility certification in a format approved
by the Board or required by state or federal regulations or guidance
to self-certify that the designated beneficiary is an eligible individual;
(4) directions related to investment of account contributions
and earnings, if any;
(5) acceptance of the terms and conditions of the Texas
ABLE Program, including any subsequent modifications, transfers, amendments,
or terminations;
(6) acceptance of any fees and charges applicable to
a Texas ABLE account;
(7) acceptance of the terms under which another person
may be substituted as the designated beneficiary;
(8) acceptance of the terms under which another person
may be substituted as the participant;
(9) acceptance of the calendar year as the taxable
year for purposes of the Program;
(10) a certification under penalty of perjury that,
unless the participant is also the designated beneficiary, the participant
does not have and will not acquire a beneficial interest in the ABLE
account and that the participant will administer the account for the
benefit of the designated beneficiary; and
(11) any other information required by the Board.
(d) If the Board finds a participant has made a material
misrepresentation regarding personal information or eligibility on
the participation agreement or in any communication regarding the
Texas ABLE Program, the Board may refund the balance of any available
funds in the ABLE account subject to any unpaid expenses or fees due
the Program and, if applicable, transfer to state following the designated
beneficiary's death.
(e) The Board may amend a participation agreement throughout
the term of the agreement.
(f) The participant is responsible for maintaining
up-to-date contact information for the ABLE account.
(g) The terms of the participation agreement shall
be binding on the designated beneficiary and participant.
(h) The rights of participants and designated beneficiaries
are subject to the provisions of these rules; Education Code, Chapter
54, Subchapter J; Internal Revenue Code, §529A; and the terms
and conditions of the participation agreement. To the extent of irreconcilable
conflict, the provisions of Internal Revenue Code, §529A; Education
Code, Chapter 54, Subchapter J; and these rules prevail over the participation
agreement.
(i) Any amendment to Internal Revenue Code, §529A;
Education Code, Chapter 54, Subchapter J; or these rules that would
apply to a participation agreement, will automatically govern over
the participation agreement to the extent of any conflict, and the
participation agreement will be automatically amended to accommodate
such changes. The Board shall provide prompt notification to participants
of any such amendments in written or electronic form as determined
by the Board.
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