Tex. Educ. Code Section 54.905
Investment of Funds

(a)

All money paid by a participant in connection with a participation agreement shall be:

(1)

deposited into an individual ABLE account held on behalf of that participant in the Texas ABLE savings plan account; and

(2)

promptly invested by the board.

(b)

The board at least annually shall establish and review the asset allocation and selection of the underlying investments of the ABLE program. The board may delegate this duty to a financial institution, including a financial institution retained by another state or a consortium of states.

(c)

The board may delegate to duly appointed financial institutions, including a financial institution retained by another state or a consortium of states, authority to act on behalf of the board in the investment and reinvestment of all or part of the funds and may also delegate to those financial institutions the authority to act on behalf of the board in the holding, purchasing, selling, assigning, transferring, or disposing of any or all of the securities and investments in which the funds in the Texas ABLE savings plan account have been invested, as well as the proceeds from the investment of those funds.

(d)

In delegating investment authority to financial institutions, the board may authorize the pooling of funds from the ABLE accounts with other funds administered by the board to maximize returns for participants. If funds from the ABLE accounts are pooled with other funds administered by the board, the board shall track, monitor, report, and record separately all investment activity related to the ABLE accounts, including any earnings and fees associated with each individual ABLE account.

(e)

The board may select one or more financial institutions to serve as custodian of all or part of the program’s assets.

(f)

In the board’s discretion, the board may contract with:

(1)

one or more financial institutions, including a financial institution retained by another state or a consortium of states, or other entities to serve as plan managers; and

(2)

one or more financial institutions, including a financial institution retained by another state or a consortium of states, to invest the money in ABLE accounts.

(g)

A contract between the board and a financial institution or other entity to act as plan manager under this subchapter may be for a term of up to five years and may be renewable.

(h)

In exercising or delegating investment powers and authority, members of the board shall exercise ordinary business care and prudence under the facts and circumstances prevailing at the time of the action or decision. A member of the board is not liable for any action taken or omitted with respect to the exercise of, or delegation of, those powers and authority if the member discharged the duties of the member’s position in good faith and with the degree of diligence, care, and skill that a prudent person acting in a like capacity and familiar with those matters would use in the conduct of an enterprise of a like character and with like aims.

(i)

In administering this subchapter, the board is subject to the board’s ethics policy adopted under Section 54.6085 (Prepaid Higher Education Tuition Board Ethics Policy).
Added by Acts 2015, 84th Leg., R.S., Ch. 1213 (S.B. 1664), Sec. 2, eff. June 19, 2015.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 296 (S.B. 377), Sec. 3, eff. May 29, 2017.

Source: Section 54.905 — Investment of Funds, https://statutes.­capitol.­texas.­gov/Docs/ED/htm/ED.­54.­htm#54.­905 (accessed Jun. 5, 2024).

54.001
Definitions 54.002
Applicability of Chapter 54.003
Tuition and Charges to Be Authorized by Law 54.004
Retention and Use of Funds 54.005
Right to Collect Special Fees 54.006
Refund or Adjustment of Tuition and Mandatory Fees for Dropped Courses and Student Withdrawals 54.007
Option to Pay Tuition by Installment 54.008
Tuition Rate Set by Governing Board 54.009
Increase in Tuition Rate or Fees 54.010
Reduction in Tuition 54.011
Tuition Limit in Cases of Concurrent Enrollment 54.012
Tuition Rates for Certain Doctoral Students 54.014
Tuition for Repeated or Excessive Undergraduate Hours 54.0015
Adoption of Certain Definitions by Rule 54.015
Billing and Notification for Tuition 54.016
Fixed Tuition Rate Program for Certain Transfer Students at General Academic Teaching Institutions 54.017
Fixed Tuition Price Plan for Undergraduate Students at Certain General Academic Teaching Institutions 54.051
Tuition Rates 54.0051
Disclosure of Course Fees in Course Catalog 54.052
Determination of Resident Status 54.053
Information Required to Establish Resident Status 54.054
Continuing Resident Status 54.055
Reclassification Based on Additional or Changed Information 54.056
Errors in Classification 54.057
Liability for Unpaid Nonresident Tuition 54.061
Reduced Designated Tuition Rates for Courses Provided During Off-peak Hours at Certain Institutions 54.0065
Tuition Rebate for Certain Undergraduates 54.0071
Authority of Institution to Provide Payment Options for Student with Delayed Financial Aid 54.075
Coordinating Board Rules 54.206
Foreign Service Officers 54.211
Faculty and Dependents 54.212
Teaching or Research Assistant 54.213
Scholarship Student 54.214
Biomedical Research Program 54.216
Students Enrolled in Course for Concurrent High School and College-level Credit 54.217
Students Enrolled in Fully Funded Courses 54.218
Distance Learning or Off-campus Courses 54.221
The University of Texas System 54.222
Economic Development and Diversification 54.223
Tuition Rates for Olympic Athletes 54.225
Students Enrolled in Non-semester-length Developmental Education Interventions 54.231
Resident of Bordering State or Nation or Participant in Student Exchange Program: Tuition 54.232
Nato Agreement 54.233
Academic Common Market 54.241
Military Personnel and Dependents 54.251
Registered Nurses in Postgraduate Nursing Degree Programs 54.261
Designated Tuition 54.262
Student Services Fees 54.301
Highest Ranking High School Graduates 54.331
Students from Other Nations of the American Hemisphere 54.341
Veterans and Other Military Personnel 54.342
Prisoners of War 54.343
Children of Prisoners of War or Persons Missing in Action 54.345
Assistance for Tuition and Fees for Members of State Military Forces 54.351
Children of Disabled Firefighters and Law Enforcement Officers 54.352
Disabled Peace Officers and Fire Fighters 54.353
Firefighters Enrolled in Fire Science Courses 54.354
Education Benefits for Certain Survivors 54.355
Children of Professional Nursing Program Faculty 54.356
Preceptors for Professional Nursing Education Programs 54.361
One-year Exemption for Certain Tanf Students 54.362
Funding of Exemptions 54.363
Educational Aides 54.364
Blind, Deaf Students 54.365
Senior Citizens 54.366
Exemptions for Students Under Conservatorship of Department of Family and Protective Services 54.367
Exemptions for Adopted Students Formerly in Foster or Other Residential Care 54.368
Interinstitutional Academic Programs 54.501
Laboratory Fees 54.0501
Definitions 54.502
General Deposits 54.503
Student Services Fees 54.504
Incidental Fees 54.505
Vehicle Registration Fees and Other Fees Related to Parking and Traffic 54.506
Fees and Charges for Services to the Public 54.508
Medical Services Fee 54.509
Student Recreation Fee 54.510
Student Recreational Sports Fee 54.511
Student Fees for Bus Service 54.512
Shuttle Bus Fee 54.513
Student Service Fees 54.0513
Designated Tuition 54.514
Student Fees Advisory Committee 54.515
Student Union Fee 54.0515
Legislative Oversight Committee on Higher Education 54.519
Student Union Fee 54.520
University Center Student Fee 54.522
Student Center Fees 54.523
Student Center Fees 54.525
Fees for Student Centers 54.526
Student Fees for University Centers 54.527
Student Fees for University Center Facilities 54.528
Recreational Facility Fee 54.529
Student Union Fee 54.530
Student Union Fees 54.531
Student Union Buildings Fees 54.532
Student Union Building Fees 54.533
Student Union Fees 54.534
Arts and Performance Center Fee 54.535
Student Union Fee 54.536
Fees for Student Health Services Building 54.537
Fees for Student Services Building 54.538
Recreational Sports Fee 54.540
Student Center Fee, University of Houston-clear Lake 54.541
Recreational Facility Fee 54.542
Student Union Facilities Fee 54.543
Recreational Facility Fee 54.544
Recreational Facility Fee 54.545
Fees for Continuing Education Courses 54.551
Intercollegiate Athletics Fee 54.0601
Nonresident Tuition Rates at Certain Institutions 54.601
Definitions 54.602
Establishment of Board 54.603
Sunset Provision 54.604
Termination or Modification of Program 54.605
Effect of Termination of Program on Contract 54.606
Members of Board 54.607
Duty in Recommending, Making, or Confirming Appointments 54.608
Restrictions on Board Appointment, Membership, and Employment 54.609
Removal of Board Member 54.610
Training of Board Members 54.611
Board Officers 54.612
Compensation and Expenses of Appointed Board Members 54.613
Meetings 54.614
Applicability of Open Meetings Law and Administrative Procedure Law 54.615
Executive Director 54.616
Program and Facility Accessibility 54.617
Public Interest Information and Complaints 54.618
Powers of Board 54.619
Prepaid Higher Education Tuition Program 54.620
Prepaid Tuition Contract 54.621
Beneficiary 54.622
Types of Plans 54.623
Junior College Plan 54.624
Senior College Plan 54.625
Junior-senior College Plan 54.626
Contract Payment 54.627
Change of Beneficiary 54.628
Conversion to Another Plan 54.629
Verification Under Oath 54.630
Promise or Guarantee of Admission 54.631
Contract Termination 54.632
Refund 54.633
Prepaid Higher Education Tuition Scholarships for Students 54.634
Establishment of Trust Fund 54.635
Comptroller 54.636
Investment of Fund Assets 54.637
Use of Fund Assets 54.639
Exemption from Creditors’ Claims 54.640
Actuarial Soundness of Fund 54.641
Statement Regarding Status of Prepaid Tuition Contract 54.642
Reports 54.643
Confidentiality 54.644
Tax Exempt Status Requirements 54.701
Definitions 54.702
Powers and Duties of Board 54.703
Operation of Plan 54.704
Selection of Financial Institution as Plan Manager 54.705
Duties of Plan Manager 54.706
Contract Between Board and Plan Manager 54.707
Savings Trust Accounts 54.708
Contributions and Withdrawals 54.709
Administration of Accounts 54.710
Plan Limitations 54.711
No Promise of Admission, Enrollment, or Graduation 54.712
Residency Not Required 54.713
Policies for Promotion and Disclosure of Information 54.714
Confidentiality of Records 54.715
Termination or Modification of Plan 54.716
Effect of Termination of Plan on Savings Trust Agreement 54.751
Definitions 54.752
Powers and Duties of Board Concerning Program 54.753
Prepaid Tuition Units: Purchase 54.754
Redemption of Tuition Units 54.755
Prepaid Tuition Contract 54.756
Purchaser 54.757
Contract Payment 54.758
Deferred Use of Prepaid Credit Hours 54.759
Change of Beneficiary 54.760
Verification Under Oath 54.761
Promise or Guarantee of Admission 54.762
Contract Termination 54.763
Refund 54.764
Fund 54.765
Comptroller’s Duties 54.766
Investment of Fund Assets 54.767
Use of Fund Assets 54.768
Exemption from Securities Laws 54.769
Exemption from Creditors’ Claims 54.770
Actuarial Soundness of Fund 54.771
Compliance with Limits on Contributions and Withdrawals 54.772
Tax Exempt Status Requirements 54.773
Suspension of New Enrollment 54.774
Effect of Program Termination on Contract 54.775
Confidentiality 54.776
Statement Regarding Status of Prepaid Tuition Contract 54.777
Information Required for Annual Report 54.778
Audit 54.801
Definitions 54.802
Texas Save and Match Program 54.803
Initial Eligibility for Participation in Program 54.804
Limitations 54.805
Matching Account Administration 54.806
Confidentiality 54.807
Pilot Projects Under Program 54.808
Texas Save and Match Trust Fund 54.809
Rules 54.901
Purposes of Program 54.902
Definitions 54.903
Creation of Program and Account 54.904
Powers and Duties of Board 54.905
Investment of Funds 54.906
Treatment of Assets 54.907
Exemption from Securities Laws 54.908
Participation Agreements 54.909
Use of Fund Assets 54.910
Designated Beneficiary 54.911
Verification Under Oath 54.912
Cancellation 54.913
Reports 54.914
Confidentiality of Records 54.915
Program Limitations 54.916
Termination or Modification of Program 54.2001
Continued Receipt of Exemptions or Waivers Conditional 54.2002
Exemptions and Waivers for State-funded Courses Only 54.2031
Dependent Children of Residents Who Are Members of Armed Forces Deployed on Combat Duty 54.3411
Permanent Fund Supporting Military and Veterans Exemptions 54.3531
Peace Officers Enrolled in Certain Courses 54.5011
Charges and Fees for Certain Payments 54.5021
Student Deposit Fund 54.5022
Investment of General Deposits 54.5025
Proration of Fees 54.5031
Student Fee Advisory Committee 54.5033
Student Fee Advisory Committee Meetings Open to Public 54.5035
Waiver of Fees 54.5041
Environmental Service Fee 54.5061
Student Services Fees 54.5062
Student Fees Advisory Committee 54.5081
Medical Services Fee 54.5085
Medical Services Fee 54.5089
Medical Services Fee 54.5091
Student Recreational Facility Fee 54.5111
Environmental Service Fee 54.5121
Intercollegiate Athletic Fee 54.5122
Recreational Facility Fee 54.5131
International Education Fee 54.5132
International Education Fee 54.5133
Martin Luther King, Jr 54.5135
Barbara Jordan and Cesar Chavez Statues Fee 54.5191
Intercollegiate Athletics Fee 54.5192
Intercollegiate Athletics Fee 54.5201
Recreational Sports Fee 54.5202
Intercollegiate Athletics Fee 54.5221
Recreational Facility Fee 54.5222
Medical Services Fee 54.5223
Intercollegiate Athletics Fee: Texas Southern University 54.5241
Student Union Fees 54.5251
Student Fitness and Recreational Fee 54.5311
Transportation Fee 54.5312
Student Services Buildings Fee 54.5313
Intramural and Intercollegiate Athletics Fee 54.5321
Transportation Fee 54.5322
Intercollegiate Athletics Fee 54.5331
Intercollegiate Athletic Fee 54.5332
Fees for Student Services Building 54.5341
Student Recreational Facility Fee 54.5342
Intercollegiate Athletics Fee 54.5343
Student Union Fee 54.5371
Gregory Gymnasium Renovation Fee 54.5372
Aquatics Center Fee 54.5381
Intercollegiate Athletics Fee: Certain Institutions in Texas State University System 54.5382
Intercollegiate Athletics Fee: Texas State University 54.5394
Intercollegiate Athletics Fee: Tarleton State University 54.5401
Recreation and Wellness Facility Fee 54.5402
Wellness and Success Center Fee 54.5405
Student Center Fee 54.5406
Health and Wellness Center Fee 54.5421
Sports Recreation and Wellness Facility Fee 54.6001
Public Purpose 54.6085
Prepaid Higher Education Tuition Board Ethics Policy 54.6175
Use of Technology 54.6181
Advisory Committees 54.6195
Application for Enrollment 54.6245
Graduate and Professional Degree Plans 54.6251
Private College Plan 54.6252
Contract for Additional Credit Hours 54.6261
Deferred Use of Prepaid Credit Hours 54.6262
Application of Unused Credit Hours to Graduate Tuition 54.6385
Exemption from Securities Laws 54.6401
Compliance with Limits on Contributions and Withdrawals 54.9045
Collection of Fees 54.9065
Exclusion of Able Account Assets from Certain Benefit Eligibility Determinations 54.9085
Encumbrance or Transfer of Account Prohibited 54.50891
Medical Services Fee
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 54.905’s source at texas​.gov