Administration of Mississippi ABLE Program; provisions of program account participation agreement; termination of program
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On or before July 1, 2018, the Mississippi ABLE Board shall establish and administer the Mississippi ABLE Program or shall enter into a contractual relationship or into a consortium with another state or states to provide qualifying Mississippi residents access to enrollment in an operating ABLE Program. Before implementing the program, the board shall obtain a written opinion from counsel specializing in:
Federal tax matters which indicate that the Mississippi ABLE Program is designed to comply with Section 529A of the Internal Revenue Code; and
Federal securities law which indicate that the Mississippi ABLE Program and the offering of participation in the program are designed to comply with applicable federal securities law and qualify for the available tax exemptions under such law.
The Mississippi ABLE account participation agreement must include provisions specifying that:
The participation agreement is only an obligation of the Mississippi ABLE Program and the ABLE Trust Fund and is not an obligation of the state;
Participation in the Mississippi ABLE Program does not guarantee that sufficient funds will be available to cover all qualified disability expenses for any designated beneficiary and does not guarantee the receipt or continuation of any product or service for the designated beneficiary;
The designated beneficiary must be a resident of this state or a resident of a contracting or consortium state at the time the ABLE account is established;
The establishment of an ABLE account in violation of federal law is prohibited;
Contributions in excess of the limitations set forth in Section 529A of the Internal Revenue Code are prohibited;
The state is a creditor of ABLE accounts as, and to the extent, set forth in Section 529A of the Internal Revenue Code; and
Material misrepresentations by a party to the participation agreement, other than the board in the application for the participation agreement or in any communication with the board regarding the Mississippi ABLE Program may result in the involuntary liquidation of the ABLE account. If an account is involuntarily liquidated, the designated beneficiary is entitled to a refund, subject to any fees or penalties provided by the participation agreement and the Internal Revenue Code.
The participation agreement may include provisions specifying:
The requirements and applicable restrictions for opening an ABLE account;
The eligibility requirements for a party to a participation agreement and the rights of the party;
The requirements and applicable restrictions for making contributions to an ABLE account;
The requirements and applicable restrictions for directing the investment of the contributions or balance of the ABLE account;
The administrative fee and other fees and penalties applicable to an ABLE account;
The terms and conditions under which an ABLE account or participation agreement may be modified, transferred or terminated;
The disposition of abandoned ABLE accounts; and
Any other terms and conditions determined to be necessary or proper to conform the participation agreement with the requirements of Section 529A of the Internal Revenue Code.
The participation agreement may be amended throughout its term for purposes that include, but are not limited to, allowing a participant to increase or decrease the level of participation and to change designated beneficiaries and other matters authorized by this section and Section 529A of the Internal Revenue Code.
Notwithstanding any other provision of law, the Mississippi ABLE Board, acting through the ABLE Coordinator, may enter into an agreement with contracting states which either allow Mississippi residents to participate under the design, operation, and rules of a contracting state's qualified ABLE Program or which allows residents of a participating contracting state to participate under the Mississippi ABLE Program.
The Mississippi ABLE Program shall continue in existence until terminated by law. If the Mississippi ABLE Board determines that the program is financially infeasible, the board shall submit its recommendation, in the form of a feasibility report, to the Legislature to terminate the program.