Texas Administrative Code

(a) A prepaid tuition contract will allow a beneficiary: (1) to elect to pay from a source other than tuition units purchased under the contract the beneficiary's tuition and required fees for some or all of the tuition and required fees to which the beneficiary is entitled to pa…

Failure to make any payment within 30 days of the due date shall result in default by the purchaser. A purchaser may reinstate the status of its prepaid tuition contract in good standing within 180 days of the default, subject to payment of all delinquent amounts and any fees spe…

The purchaser may transfer benefits to an out-of-state college or university accredited by a regional accrediting association which is an "eligible educational institution" within the meaning of the Internal Revenue Code, §135(c)(3). The amount of the transfer shall not exceed th…

(a) If the program is terminated a prepaid tuition contract remains in effect if the beneficiary has been accepted by or is enrolled in an institution of higher education, a private or independent institution of higher education, or a proprietary school, or the beneficiary is pro…

(a) The prepaid tuition contract shall be terminated automatically: (1) if the board determines that a purchaser has misrepresented residency, age, or other information required by the board in connection with the purchase of a contract; or (2) upon failure to pay any amounts due…

(a) Refunds shall be made in accordance with provisions of these rules and the prepaid tuition contract, in a manner that will not adversely affect the tax status of the program under applicable provisions of the Internal Revenue Code, as amended from time to time. Refunds shall …

(a) Plans are designed to be flexible and to allow beneficiaries to attend their choice of institutions of higher education or private or independent institutions of higher education. (b) A purchaser may convert a prepaid tuition contract from one plan to another plan during the …

A purchaser is a person who is obligated to make payments under a prepaid tuition contract. Joint purchasers may enter into a single prepaid tuition contract if they are married on the date of application. Each person that is a purchaser under a prepaid tuition contract is jointl…

(a) The purchaser of a prepaid tuition contract may substitute one beneficiary for another subject to the following conditions: (1) the new beneficiary must meet the requirements of a qualified beneficiary on the date the designation is changed, including residency requirements; …

(a) The purchaser must certify on the application for enrollment in the program that the beneficiary or the parents or guardians of the beneficiary are residents of this state at the time the purchaser enters into the contract and that the beneficiary or the parents or guardians …

A qualified beneficiary is an individual who is under the age of 18 or who is 18 years of age or older and enrolled in high school at the time the purchaser enters into the contract, who has not graduated from high school nor obtained high school equivalency certification, and is…

(a) If the beneficiary of a prepaid tuition contract registers in a graduate or professional degree program before the termination of the contract and the beneficiary has not received payment under the contract for tuition and required fees for all of the semester credit hours to…

At any time during the duration of the contract but before the beneficiary graduates from high school, the purchaser of a prepaid tuition contract for a senior college plan for four years or a private college plan may purchase a supplemental contract to prepay the tuition and req…

(a) Except as provided by § 7.53 of this title (relating to Supplemental Contracts), no more than 128 tuition credit hours may be purchased or paid pursuant to a prepaid tuition contract for attendance under the senior college plan or private college plan. (b) No more than 64 tui…

(a) For prepaid tuition contracts issued under the junior college plan, junior/senior college plan, or senior college plan, the tuition and required fees paid pursuant to such prepaid tuition contracts shall be paid in accordance with the rates charged to Texas residents. (b) For…

(a) The board shall adopt an administrative fee schedule to cover costs of administration of the program. (b) Fees adopted by the board shall reflect the intent to make the program self-supporting and to maintain the actuarial soundness of the fund. The fees may include the follo…

(a) Except as provided in subsection (c) of this section, each enrollment period shall begin and end on dates set annually by the board and published in the Texas Register. The official postmark date affixed by the United States Postal Service or date stamp evidencing actual rece…

(a) These rules apply to prepaid tuition contracts for the prepayment of tuition and required fees necessary for a beneficiary to attend an institution of higher education or private or independent institution of higher education. Prepayments are expressly limited to payment of t…

Authority to act in the following areas is delegated to the executive director by the board: (1) to act as agent for service of process and as official liaison with agencies of the state, other states, the federal government and the public; (2) to initiate, settle or defend litig…

The executive director shall select and supervise staff and contractors or consultants retained by the board, and shall perform such other functions as may be necessary to supervise, direct, conduct and administer the day-to-day duties of the board as authorized by law or by rule…

The comptroller serves as executive director of the board. The executive director shall perform all duties and responsibilities imposed by law or delegated by the board. Notes 34 Tex. Admin. Code § 7.31 The provisions of this §7.31 adopted to be effective January 8, 1996, 20 TexR…

(a) The provisions of this section are intended to meet the requirements of the Internal Revenue Code, §529. (b) All payments of amounts due to the fund for a prepaid tuition contract must be made in cash. No person may make payments to the fund in excess of the amounts required …

The board shall retain the following responsibilities, all of which expressly are not delegated to the executive director: (1) initiation, settlement or defense of litigation and the retention of legal counsel in connection with litigation; provided that limited authority with re…

The following words, terms, and phrases, when used in this chapter, shall have the following meanings. Terms used in this chapter and defined in the Education Code, § 54.601 , shall have the meaning ascribed therein. (1) Average amount of tuition and required fees--The average am…

(a) The ABLE Program Advisory Committee is established to provide to the Board the committee's collective expertise as members, advocates, financial, business, legal, and veteran advisors, or other supporters of the disability community regarding the administration of and experie…

(a) Nothing in this Program or in any participation agreement entered into under this Program may be construed to guarantee that amounts saved under the Program will be sufficient to cover the qualified disability expenses of a designated beneficiary. (b) Nothing in this Program …

(a) The comptroller shall notify the governor and legislature and recommend that the Board not administer such Program or that the Program be modified or terminated if the comptroller determines that the Program is not financially feasible. (b) The Board may adjust the terms of t…

(a) The participant may cancel a participation agreement at will and request refund of all of the available funds of an ABLE account less any amounts due for transfer to state, if applicable, at any time in a format approved by the Board. (b) The Board shall determine the calcula…

(a) The Board shall administer and invest the assets of the Program. The Board shall serve as the trustee of the assets of the Program. (b) The Board may delegate to duly appointed financial institutions or plan manager(s) authority to act on behalf of the Board in the investment…

(a) Voluntary termination. A participant may voluntarily terminate an ABLE account in accordance with the terms of the participation agreement and by using the procedures approved by the Board. (b) Involuntary termination. If the Board finds a participant has made a material misr…

(a) The Program will provide a periodic statement of account to the participant no less than annually. The statement will include, but not be limited to, the following information related to the account for the period reported: (1) contributions; (2) distributions; (3) fees; (4) …

(a) If the participant is not the designated beneficiary, the participant may be changed to another individual that meets the requirements of a participant in accordance with § 7.185 of this title (relating to Participant), upon submittal of a request to the Board in a form appro…

(a) A request to change the beneficiary of an ABLE account to another eligible member of the family must be submitted in a format approved by the Board. (b) The Board may charge a fee to process a change of beneficiary for an account. (c) A change of beneficiary that satisfies In…

(a) When a beneficiary enrolls at a general academic teaching institution or two-year institution of higher education and notifies the institution that payment will be made by redeemed tuition units, the comptroller will arrange for the transfer to the institution of the appropri…

(a) Refunds shall be made in accordance with provisions of this subchapter and the prepaid tuition contract, in a manner that will not adversely affect the tax status of the program under applicable provisions of Internal Revenue Code, §529. Refunds shall be governed by this subc…

(a) An account is subject to a late payment penalty for payments not received within 15 days of the payment due date. (b) If no payments are received within 90 days of the first payment due date under a newly established account, the account is in default and will be cancelled. (…

(a) The prepaid tuition contract may be terminated by the board: (1) if the board determines that a purchaser has misrepresented residency, age, or other information required by the board in connection with the purchase of a contract; (2) upon default for failure to pay any amoun…

Nothing in this subchapter or the program should be construed as a promise or guarantee that a beneficiary will be: (1) admitted to any public or private institution of higher education; (2) admitted to a particular public or private institution of higher education; (3) allowed t…

(a) The purchaser is the person who is obligated to make payments under a prepaid tuition contract. (b) Unless otherwise provided in this subchapter, the purchaser shall execute all prepaid tuition contract changes, conversions, transfers, terminations and refund requests. (c) An…

(a) The staff, at the direction of the presiding officer, shall prepare the agenda prior to board meetings. Notice of items to be considered shall be filed with the secretary of state as required by law. (b) Additional items may be included on the agenda upon the written request …

Under the direction of the secretary, the staff shall keep a complete record of the meetings of the board and shall prepare complete written summaries or minutes reflecting actions taken by the board. Notes 34 Tex. Admin. Code § 7.14 The provisions of this §7.14 adopted to be eff…

(a) An eligible individual must be a resident of Texas at the time the ABLE account is established. The Board may act to accept out-of-state residents into the Program to the extent allowed by law. (b) If at any time, the Program becomes aware that the eligible individual no long…

(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 e…

(a) A prepaid tuition contract remains in effect after the program is terminated if, when the program is terminated, the beneficiary: (1) has been accepted by or is enrolled at a general academic teaching institution, two-year institution of higher education, private or independe…

(a) On the request of the comptroller as the comptroller considers necessary to ensure the actuarial soundness of the fund, the board may temporarily suspend new enrollment in the program. (b) If the comptroller determines that the program is financially infeasible, the comptroll…

The provisions of this section are intended to meet the requirements of Internal Revenue Code, §529A. (1) The Board, to the extent allowed by law, may contract with another state, including a state or multi-state consortium, that administers a qualified ABLE program as authorized…

(a) The following words, terms, and phrases, when used in this subchapter, shall have the following meanings. In addition, definitions set forth in Internal Revenue Code, §529A and Education Code, Chapter 54, Subchapter J are incorporated in these rules. (1) ABLE account or "acco…