Bill Text: CA SB1362 | 2023-2024 | Regular Session | Introduced

California Senate Bill 1362

Introduced

Bill Title: Qualified ABLE Program: CalABLE accounts: funding.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-05-16 - May 16 hearing: Held in committee and under submission. [SB1362 Detail]

Download: California-2023-SB1362-Introduced.html

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 1362

Introduced by Senator Newman

February 16, 2024

An act to add Section 4878.5 to the Welfare and Institutions Code, relating to Qualified ABLE Program.

LEGISLATIVE COUNSEL'S DIGEST

SB 1362, as introduced, Newman. Qualified ABLE Program: CalABLE accounts: funding.

Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting eligible individuals with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified.

Existing law establishes the Qualified ABLE Program for purposes of implementing the federal ABLE Act in this state, and creates the California ABLE Program Trust with the purposes, powers, and duties of the trust to be vested in and exercised by the California ABLE Act Board. Existing law requires the board to segregate the moneys coming into the ABLE program trust into 2 funds: the program fund, which is continuously appropriated, for specified purposes of the act, and the administrative fund, which is available upon appropriation by the Legislature for administration of the act. Existing law requires all moneys paid by designated beneficiaries or eligible individuals in connection with ABLE accounts to be deposited, as received, into the program fund, promptly invested, and accounted for separately.

This bill would require the CalABLE program to make a one-time deposit of at least $250 into each new CalABLE account that meets specified requirements, including that the account was opened on or after a date to be determined by the board, but no earlier than January 1, 2025, and the designated beneficiary of the account is a California resident. The bill would also authorize the board to provide additional financial incentives designated to increase moneys paid by designated beneficiaries or eligible individuals in connection with their CalABLE accounts. The bill would make those provisions subject to an appropriation by the Legislature.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 4878.5 is added to the Welfare and Institutions Code, to read:

4878.5.

(a) The CalABLE program shall make a one-time deposit of at least two hundred fifty dollars ($250) into each new CalABLE account that meets all of the following requirements:

(1) The CalABLE account was opened on or after a date to be determined by the board, but in no event shall this date be prior to July 1, 2025.

(2) The designated beneficiary of the CalABLE account is a California resident.

(3) The CalABLE account has been funded with a one-time deposit of at least fifty dollars ($50).

(4) Any other requirements that may be adopted by the board as a condition of receiving the one-time deposit.

(b) The board may provide additional financial incentives designated to increase moneys paid by designated beneficiaries or eligible individuals in connection with their CalABLE accounts.