Bill Text: CA SB218 | 2017-2018 | Regular Session | Introduced

California Senate Bill 218 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: The Qualified ABLE Program: tax-advantaged savings accounts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2017-10-04 - Chaptered by Secretary of State. Chapter 482, Statutes of 2017. [SB218 Detail]

Download: California-2017-SB218-Introduced.html

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill

No. 218

Introduced by Senator Dodd

February 01, 2017

An act to add Section 4885 to the Welfare and Institutions Code, relating to the Qualified ABLE Program.

LEGISLATIVE COUNSEL'S DIGEST

SB 218, as introduced, Dodd. The Qualified ABLE Program: tax-advantaged savings accounts.

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 in a tax-advantaged savings account for the purpose of supporting persons with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a designated beneficiary of a qualified ABLE program established and maintained by a state, as specified. Existing state law authorizes a designated beneficiary, as defined, to have one ABLE account for these purposes.

This bill would authorize the transfer of all amounts in the designated beneficiary’s ABLE account to an ABLE account for another individual specified by either the designated beneficiary or the estate of the designated beneficiary upon the death of the designated beneficiary. The bill would prohibit the state from seeking distribution of any amount remaining in the designated beneficiary’s ABLE account for any amount of medical assistance paid under the state’s Medicaid plan and would prohibit the state from filing a claim for the payment, as specified.

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

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

SECTION 1.

Section 4885 is added to the Welfare and Institutions Code, to read:

4885.

(a) Notwithstanding any other state law, all amounts in the designated beneficiary’s ABLE account, upon the death of the designated beneficiary, may be transferred to an ABLE account for another eligible individual specified by either the designated beneficiary or the estate of the designated beneficiary.

(b) Following the death of a designated beneficiary, the state shall not seek distribution of any amount remaining in the designated beneficiary’s ABLE account for any amount of medical assistance paid for the designated beneficiary after the establishment of the account under the state’s Medicaid plan established under Title XIX of the Social Security Act, and the state shall not file a claim for the payment under Section 529A of the Internal Revenue Code.