A. The program shall require:

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Terms Used In Arizona Laws 46-905

  • Account: means an individual account in the fund established as prescribed in this article for a single designated beneficiary. See Arizona Laws 46-901
  • Assistance: means payments in cash or kind to or on behalf of a person or persons in need as provided for in this title. See Arizona Laws 46-101
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Department: means the department of economic security. See Arizona Laws 46-901
  • Designated beneficiary: means the eligible individual who establishes an account and who is the owner of the account. See Arizona Laws 46-901
  • Financial institution: means any bank, commercial bank, national bank, savings bank, savings and loan association, credit union, insurance company, brokerage firm or other similar entity that is authorized to do business in this state. See Arizona Laws 46-901
  • Program: means the qualified ABLE program that is established under this article and as defined in 26 United States Code § 529A. See Arizona Laws 46-901
  • Qualified disability expenses: means any expenses that are related to the eligible individual's blindness or disability and that are for the benefit of an eligible individual who is the designated beneficiary of an account, including education, housing, transportation, employment training and support, assistive technology and personal support services, health care, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring and funeral and burial expenses and any other expenses that are approved by the United States secretary of the treasury as required by 26 United States code section 529A. See Arizona Laws 46-901
  • United States: includes the District of Columbia and the territories. See Arizona Laws 1-215

1. A designated beneficiary to have only one account.

2. A designated beneficiary to direct the investment of any contributions to the program or any earnings not more than two times in any calendar year.

3. Contributions to accounts to be made only in cash.

4. That any excess contributions with respect to a designated beneficiary be rejected pursuant to 26 United States Code § 529A and any regulations issued pursuant to that section.

B. Contributions to and earnings on a designated beneficiary’s account in this or any other state shall not be counted as income or resources of the designated beneficiary for the purposes of eligibility for any program under this title or Title 36, Chapter 29.

C. Subject to any outstanding payments due for qualified disability expenses, on the death of the designated beneficiary, a claim may be filed for payment of all amounts remaining in the account not in excess of the amount equal to the total medical assistance paid for the designated beneficiary after establishment of the account as authorized by 26 United States Code § 529A and any regulations issued pursuant to that section.

D. An account may be opened by a designated beneficiary by completing an application in the form prescribed by the department. Separate records and accounting shall be maintained for each account for each designated beneficiary.

E. A designated beneficiary may not use an interest in an account as security for a loan. Any pledge of an interest in an account is of no force and effect.

F. The financial institution shall provide statements to each designated beneficiary at least once each year within thirty-one days after the twelve-month period to which they relate. The statement shall identify the contributions made during a preceding twelve-month period, the total contributions made through the end of the period, the value of the account as of the end of this period, distributions made during this period and any other matters that the department requires be reported to the account owner.

G. Statements and information returns relating to accounts shall be prepared and filed to the extent required by federal or state law.

H. Any social security numbers, addresses or telephone numbers of designated beneficiaries that come into the possession of the department are confidential, are not public records and shall not be released by the department.