As used in this part:

1. (1) “ABLE” means the federal Achieving a Better Life Experience Program as provided under the Tax Increase Prevention Act of 2014, Pub. L. No. 113-295, as amended, that creates state-level tax-advantaged savings programs to assist eligible individuals;
2. (2) “ABLE Program” or “program” means the Arkansas Achieving a Better Life Experience Program administered by the Achieving a Better Life Experience Program Committee, managed by the Treasurer of State, and created pursuant to the Achieving a Better Life Experience Program Act, Arkansas Code § 20-3-101 et seq., as amended;
3. (3) “ABLE Program Committee” or “committee” means the committee created pursuant to Arkansas Code § 20-3-105, or any successor provision thereto;
4. (4) “Account” means an individual investment account established and owned by an eligible individual and maintained pursuant to the Achieving a Better Life Experience Program;
5. (5) “Account Application Form” means an application substantially in the form approved by the Achieving a Better Life Experience Program Committee from time to time;
6. (6) “Administrative expenses” means all expenses associated with the implementation and administration of the Achieving a Better Life Experience Program, including fees payable to third parties providing services related to the Achieving a Better Life Experience Program;
7. (7) “Age-based option” means a portfolio the assets of which are invested in a combination of underlying investments, currently based on the ages of designated beneficiaries specified for such portfolio;
8. (8) “Approved allocation” means the allocation of assets for a portfolio as approved by the Achieving a Better Life Experience Program Committee as may be set forth in the Program Management Agreement;
9. (9) “Approved allocation effective date” means the annual date (July 1) by which the approved allocation for a portfolio is approved, as may be set forth in the Program Management Agreement;
10. (10) “Arkansas administration fee” means any fee paid out of the Achieving a Better Life Experience Program’s assets to the Achieving a Better Life Experience Program Committee pursuant to a Program Management Agreement;
11. (11) “Business day” means each day on which the New York Stock Exchange is open for trading;
12. (12) “Code” means the Internal Revenue Code of 1986, as amended (26 U.S.C. § 1 et seq.);
13. (13) “Contracting state” means a state without a qualified ABLE program that has entered into a contract with Arkansas to provide residents of the contracting state access to a qualified ABLE program;
14. (14) “Contribution maximum” means the maximum amount that may be contributed to an account for the same designated beneficiary, as determined from time to time by the Achieving a Better Life Experience Program Committee in accordance with ABLE;
15. (15) “Designated beneficiary” means the eligible individual who established the account and is the owner of the account;
16. (16) “Designated Beneficiary Change Form” means a form for changing a designated beneficiary substantially in the form approved by the Achieving a Better Life Experience Program Committee, from time to time;
17. (17) “Designated representative” means a person who is authorized to act on behalf of an account owner and designated beneficiary;
18. (18) “Disability certification” means the same as provided in Arkansas Code § 20-3-103(4);

19. (19)

    1. (A) “Earnings” means the aggregate total of all dividends and interest income received by the Achieving a Better Life Experience Program at any time following the Achieving a Better Life Experience Program’s commencement.
    2. (B) The aggregate total of dividends and interest income shall be reduced by the aggregate total of administrative expenses at any time following the commencement of the Achieving a Better Life Experience Program.
    3. (C) Earnings shall be determined without regard to realized or unrealized capital gains and losses incurred by the Achieving a Better Life Experience Program;

20. (20) “Eligible individual” means an individual who for a taxable year:

    1. (A) Is entitled to benefits based on blindness or disability under Title II or XVI of the Social Security Act, 42 U.S.C. § 301 et seq., and the blindness or disability is a preexisting condition that occurred before the date on which the individual attained twenty-six (26) years of age; or
    2. (B) Has a disability certification filed with the United States Secretary of the Treasury for the taxable year;
21. (21) “FDIC” means the Federal Deposit Insurance Corporation;

22. (22)

    1. (A) “Federal guidelines” means official guidance from federal agencies with jurisdiction over ABLE, including the Social Security Administration’s Program Operations Manual System (SI 01130.740) (2016) and Internal Revenue Service Notice 2015-81, "Guidance Under Section 529A: Qualified ABLE Programs" (80 FR 35602) (2015).
    2. (B) These incorporations by reference refer to the guidelines on the date specified and do not include any editions or amendments subsequently to the date specified;
23. (23) “Investment fund” means the portion of the Achieving a Better Life Experience Program’s assets invested in underlying investments (i.e., that portion of the Achieving a Better Life Experience Program’s assets not held in the operating fund);
24. (24) “IRS” means the Internal Revenue Service;
25. (25) “Management fee” means any fee paid out of the Achieving a Better Life Experience Program’s assets to the program manager pursuant to a written agreement approved by the Achieving a Better Life Experience Program Committee;
26. (26) “Member of the family” means a brother, sister, stepbrother, or stepsister;
27. (27) “MSRB” means Municipal Securities Rulemaking Board and any duly established entity that succeeds to the functions thereof;

28. (28) “Net asset value” means:

    1. (A) The net asset value per share of the underlying investments as of the market close on that business day;
    2. (B) Adjustments, if any, to the net asset value per share of any underlying investments made after the market close;
    3. (C) Net purchase orders and net redemption orders received by the program manager each business day;
    4. (D) The deduction and payment of fees and expenses from the portfolios by the program manager; and
    5. (E) The program manager’s reinvestment, into any underlying investment it or its affiliate offers and manages, of any income, dividends, and/or capital gain distributions paid by underlying funds;
29. (29) “NYSE” means the New York Stock Exchange;
30. (30) “Operating account” means the account established for the purpose of holding the Arkansas administration fee;
31. (31) “Operating fund” means that portion of the Achieving a Better Life Experience Program’s assets not held in the investment fund;
32. (32) “Participation Agreement” means an agreement to participate in the Achieving a Better Life Experience Program between an account owner and the Achieving a Better Life Experience Program, substantially in the form approved by the Achieving a Better Life Experience Program Committee, from time to time;
33. (33) “Plan disclosure documents” means the complete disclosure document or set of documents describing the Achieving a Better Life Experience Program, including any supplement or supplements thereto, each as amended from time to time, constituting an “official statement” within the meaning of Rule 15c2-12 under the Securities Exchange Act of 1934, 15 U.S.C § 78a, as amended, and the rules of the Municipal Securities Rulemaking Board and any successor to the applicable functions thereof;
34. (34) “Portfolio” means one (1) of the program portfolios established within the investment fund to which contributions may be allocated, and that are invested in underlying investments;
35. (35) “Program Management Agreement” means a written implementing agreement among the Achieving a Better Life Experience Program, the Achieving a Better Life Experience Program Committee, and the program manager;
36. (36) “Program manager” means the entity engaged by the Achieving a Better Life Experience Program to administer the daily operations of the Achieving a Better Life Experience Program, provide marketing, recordkeeping, investment management, and other services for the Achieving a Better Life Experience Program, and manage the assets of the portfolios, all pursuant to the Program Management Agreement, and designated as such in the then current plan disclosure documents;
37. (37) “Qualified disability expenses” means the same as provided in Arkansas Code § 20-3-103(8);
38. (38) “Qualified withdrawal” or “qualified distribution” means a withdrawal from an account to pay the qualified disability expenses of the designated beneficiary of the account;
39. (39) “Rollover contribution” means a contribution to an account that is transferred to or deposited in the account from another program operating as a “qualified ABLE program” within the meaning of Section 529A, or any successor provision thereto, of the Internal Revenue Code of 1986, 26 U.S.C. § 1 et seq.;
40. (40) “Rollover distribution” means a distribution or transfer from an account that is transferred to or deposited in another program operating as a "qualified ABLE program" within the meaning of Section 529A, or any successor provision thereto, of the Internal Revenue Code of 1986, 26 U.S.C. § 1 et seq.;
41. (41) “Secretary” means the United States Secretary of the Treasury;
42. (42) “SSA” means the Social Security Administration;
43. (43) “SSI limit” means the Supplemental Security Income limit;
44. (44) “Series” means a class of units of a portfolio;
45. (45) “State” means the State of Arkansas, acting through its executive, administrative, legislative, and judicial branches;
46. (46) “Treasurer” means the duly elected Treasurer of State;
47. (47) “Trust” means the Achieving a Better Life Experience Program Trust created pursuant to Arkansas Code § 20-3-104(a);
48. (48) “Underlying investments” means ETFs, securities, separate accounts, registered mutual funds, or other investments in which assets of a portfolio are invested;
49. (49) “Withdrawal” means a qualified withdrawal or a nonqualified withdrawal;
50. (50) “Withdrawal request” means a request by an account owner to effect a withdrawal substantially in the form or other process approved by the Achieving a Better Life Experience Program Committee, from time to time;
51. (51) “Year-of-enrollment portfolio” means a portfolio the assets of which are invested in a combination of underlying investments based upon the designated beneficiary’s participated year of enrollment as determined by the account owner.

Codification Notes: "ETF" means exchange traded funds.