us-tx/regs
34 Tex. Admin. Code § 7.106 — Plan Managers
(a)
Access to books and records. A plan manager shall provide the comptroller with access to the books and records of the manager as the comptroller determines necessary to assess the manager's compliance with Education Code, Chapter 54, Subchapter G, this subchapter, the savings trust agreement, or the contract between the board and the manager.
(b)
Savings trust accounts. A plan manager shall hold each savings trust account in trust. Notwithstanding the foregoing, the Texas Trust Code does not apply to a savings trust agreement or a savings trust account.
(c)
Investments. A plan manager shall ensure that each investment by the manager is made with the judgment and care that a person of prudence, discretion, and intelligence would exercise in the management of the property of another, not in regard to speculation but in regard to the permanent disposition of funds, with consideration of the probable income as well as the probable safety of capital.
(d)
Marketing of savings plan.
(1) A plan manager shall develop a strategy to market the savings plan and present the strategy to the executive director for review. If the executive director approves the strategy, the manager shall fully implement that strategy.
(2) A plan manager may contract with a financial institution to market the savings plan on behalf of the manager.
(e)
Account services. A plan manager may contract with a financial institution to provide account services to the owner of a savings trust account that the manager administers. The institution may charge a fee or commission for those services.
(f)
Investment alternatives. The plan manager, under board supervision, may formulate a variety of alternative investment strategies for savings trust accounts, so long as such strategies are consistent with the board's investment policy and with the requirements and limitations of Internal Revenue Code of 1986, §529, as amended, and the regulations thereunder. An owner is entitled to select a strategy from among such alternatives, as permitted by Internal Revenue Code of 1986, §529, as amended.
(g)
Board review. From time to time, and in accordance with procedures that the board establishes, the board shall review, monitor, and audit the actions of the plan manager and financial institutions, as described in subsections (c), (d), (e), and (f) of this section and without impairment to any other right that the board may have to terminate a contract with a plan manager, may terminate the contract with a plan manager or withdraw its approval to any of the above matters, if in its judgment the board finds that continuation of that contract or the continued approval is not in the best interests of the owners and beneficiaries, so long as such action is consistent with rights and obligations of the board under the savings trust agreement.
Source Note: The provisions of this §7.106 adopted to be effective July 14, 2002, 27 TexReg 6044; amended to be effective June 27, 2012, 37 TexReg 4598.
Source: official text