Cal. Code Regs. tit. 10 § 9002

Current through Register 2024 Notice Reg. No. 45, November 8, 2024

Section 9002 - Account Enrollment

(a) Account Owner and Designated Beneficiary. A person may open an account if that person is an Eligible Individual who is both the Account Owner and the Designated Beneficiary.

(b) Participation Agreement. An Eligible Individual or the Eligible Individual's Authorized Legal Representative must submit a completed and signed Participation Agreement in order to open an Account. The Participation Agreement governs the Account Owner's use of the Account. The Participation Agreement shall include, at a minimum, the following terms and conditions:

(1) Representations and warranties regarding eligibility, intentions as to account use, and understanding of the investment options selected.

(2) Acknowledgement regarding contribution limits.

(3) Treatment of withdrawals, transfers, and excess contributions.

(4) Acknowledgement of risks, including no guarantees on returns or account value, no proxy rights on investments, future legislative changes, and future ABLE Plan changes.

(5) Potential for Medicaid/Medi-Cal recapture upon death of beneficiary.

(6) Dispute resolution.

(7) Indemnification and hold harmless of the ABLE Plan for any breaches of representations or factual misstatements.

(8) Governing law, venue, and jurisdiction.

(9) Certification that the person seeking to open an account does not have another qualified ABLE program account in any state (except in the case of a Rollover). An Account Owner may not have more than one qualified ABLE program account in existence in any state at the same time. A qualified ABLE program account previously opened and closed in any state does not prohibit the subsequent creation of an ABLE Account for the same Account Owner.

(10) Certification that the person seeking to open an account is an Eligible Individual as defined in IRC section 529 A, and evidence of eligibility, such as a disability certification as defined in IRC section 529 A, can and will be submitted upon request.

(11) Other terms and conditions that may be required by the Program Administrator.

Cal. Code Regs. Tit. 10, § 9002

1. New section filed 2-21-2017 as a deemed emergency pursuant to Welfare and Institutions Code section 4882(b); operative 2-21-2017 (Register 2017, No. 8). A Certificate of Compliance must be transmitted to OAL by 8-21-2017 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 8-21-2017 as a deemed emergency pursuant to Welfare and Institutions Code section 4882(b); operative 8-21-2017 (Register 2017, No. 34). A Certificate of Compliance must be transmitted to OAL by 11-20-2017 or emergency language will be repealed by operation of law on the following day.
3. Certificate of Compliance as to 8-21-2017 order transmitted to OAL 8-24-2017 and filed 10-5-2017 (Register 2017, No. 40).

Note: Authority cited: Section 4882, Welfare and Institutions Code. Reference: Sections 4875, 4877, 4878 and 4879, Welfare and Institutions Code; and Section 529 A, Internal Revenue Code.