us-tx/regs
34 Tex. Admin. Code § 7.196 — Termination or Modification of 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 the Program as necessary to ensure the financial feasibility of the Program, to ensure compliance with all applicable laws and regulations, or to facilitate the ability of participants to obtain or maintain federal income tax benefits or treatment provided by Internal Revenue Code, §529A. The Board shall promptly provide notification by any written or electronic communication as authorized and determined by the Board regarding a change in the terms of the Program affecting participants or designated beneficiaries. To the extent provided by state or federal law, the Board may allow up to 60 calendar days from the date of such notice for participants to exit the Program by withdrawing any available funds under the then-current terms. If participants do not opt to exit the Program during the opt-out period, they shall be deemed to have accepted the new terms and their ABLE accounts shall be subject to the new terms on the effective date of the change.
(c)
If the Program is terminated by the legislature, any available funds in an ABLE account will be paid, to the extent possible, to the designated beneficiary or the participant on behalf of the designated beneficiary, subject to any outstanding fees or charges due the Program and, if applicable, transfer to state following the designated beneficiary's death.
(d)
In the event that available funds are refunded by the Program due to termination of the Program, the Program will provide advance written or electronic notification to the participant of a pending refund within a reasonable time, but not less than thirty (30) days, prior to the refund by the Program.
Source Note: The provisions of this §7.196 adopted to be effective September 12, 2016, 41 TexReg 7111.
Source: official text