Section 1700-08-01-.04 - ELIGIBILITY AND APPLICATION REQUIREMENTS(1) Eligibility. In order for an Eligible Individual to participate in the Program as the owner of an ABLE Account, the Eligible Individual shall meet the following eligibility requirements by providing the following to the State: (a) Proof that the Eligible Individual is a resident of the State or of a Contracting State as of the date of application to participate in the Program;(b) Proof that he or she meets the definition of an Eligible Individual by providing:1. a completed and signed certification, affidavit, attestation, verification or declaration indicating that he or she is an Eligible Individual;2. a completed and signed authorization allowing the State to verify his or her status as an Eligible Individual; or3. documentation indicating that he or she is an Eligible Individual.(c) A completed and signed application on a form prescribed by the State; and(d) Any other documentation or information required by the Code.(2) Application. The Eligible Individual shall provide the following to accompany his or her completed and signed application to participate in the Program:(a) A completed and signed Contract between the State and the Eligible Individual for participation in the State's Qualified ABLE Program;(b) Proof that the Eligible Individual has a Legal Representative who has the authority to administer the Eligible Individual's ABLE Account for the benefit of the Eligible Individual, in the event that the Eligible Individual has a Legal Representative;(c) A verification form signed under the penalty of perjury that the Eligible Individual has no other existing ABLE Account, other than an ABLE Account that will terminate with a Rollover or Program-to-Program Transfer into the new ABLE Account;(d) Investment selection(s) made by the Eligible Individual or his or her Legal Representative. At least one (1) investment option must be selected. If more than one (1) investment option is chosen either the Eligible Individual or his or her Legal Representative, then the Eligible Individual or Legal Representative must allocate the Contribution among the chosen investment options; and(e) An initial Contribution of at least twenty-five dollars ($25.00) for each investment option chosen by the Eligible Individual or the Eligible Individual's Legal Representative.(3) Confirmation. If all of the requirements contained in the Code, the Act and this chapter are met to open an ABLE Account, the State shall send a confirmation of acceptance to the Eligible Individual and will credit the Eligible Individual's ABLE Account with the amount of the initial Contribution made.(4) Rejection. If an Eligible Individual fails to provide all of the information required in this rule within thirty (30) calendar days of the State's receipt of the Eligible Individual's application, the State Treasurer may reject the application and refund to the Eligible Individual or the Eligible Individual's Legal Representative all Contributions made less any applicable fees. Rejection of an application shall not preclude the Eligible Individual from enrolling in the Program in the future.(5) Fraud. The State Treasurer may terminate an Eligible Individual's Contract if the Eligible Individual or the Eligible Individual's Legal Representative knowingly makes any false statement or falsifies or permits to be falsified any record or records of the Program. The amount of the refund to which the Designated Beneficiary is entitled shall be equal to the Redemption Value of the ABLE Account at the time the refund is made, minus any applicable fee charged by the State.(6) Inactivity. If a period of ten (10) consecutive years passes with no Contributions having been made to the Designated Beneficiary's ABLE Account, or with no correspondence from the Designated Beneficiary or the Designated Beneficiary's Legal Representative, the State Treasurer shall report and deliver the amount of any refund payable under the Contract to the Tennessee Department of Treasury's Unclaimed Property Division pursuant to title 66 , chapter 29, part 1. Prior to delivering the refund, the State Treasurer shall make reasonable efforts to locate the Designated Beneficiary or the Designated Beneficiary's Legal Representative. The refund shall be equal to the Redemption Value of the ABLE Account at the time the refund is delivered, minus any applicable fee charged by the State. Upon payment of the refund to the State Treasurer, the State's obligations under the Contract shall cease.(7) Fees. The State Treasurer may charge fees to the Designated Beneficiary or collect fees from each ABLE Account for the administration of the Program or for transactions under the State's Qualified ABLE Program.(8) Separate Accounting. The State shall maintain a separate individual ABLE Account for each Contract, showing the name of the Designated Beneficiary and the Redemption Value of the ABLE Account, including any Distributions made from the ABLE Account.Tenn. Comp. R. & Regs. 1700-08-01-.04
Original rule filed October 8, 2015; effective 1/6/2016.Authority: T.C.A. §§ 71-4-804(b);71-4-805; 71-4-806; 71-4-807 and Chapter 470 of the 2015 Public Acts.