Bill Text: IA SF60 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to the transfer between trusts for persons with disabilities.(See SSB 1228, SF 527.)
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-01-14 - Subcommittee: Costello, Green, and Jochum. S.J. 112. [SF60 Detail]
Download: Iowa-2021-SF60-Introduced.html
Senate
File
60
-
Introduced
SENATE
FILE
60
BY
RAGAN
A
BILL
FOR
An
Act
relating
to
the
transfer
between
trusts
for
persons
with
1
disabilities.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
1093XS
(5)
89
pf/rh
S.F.
60
Section
1.
Section
12I.3,
subsection
1,
Code
2021,
is
1
amended
by
adding
the
following
new
paragraph:
2
NEW
PARAGRAPH
.
g.
Any
funds
retained
in
a
medical
3
assistance
special
needs
trust
pursuant
to
chapter
633C,
or
in
4
a
supplemental
needs
trust
pursuant
to
chapter
634A,
may
be
5
transferred
to
the
Iowa
ABLE
savings
plan
trust
account
of
a
6
designated
beneficiary
who
is
also
the
beneficiary
of
any
such
7
trust,
in
accordance
with
the
applicable
provisions
of
chapters
8
633C,
634A,
and
this
chapter.
9
Sec.
2.
Section
633C.2,
Code
2021,
is
amended
to
read
as
10
follows:
11
633C.2
Disposition
of
medical
assistance
special
needs
12
trusts.
13
Any
income
or
assets
added
to
or
received
by
and
any
income
14
or
principal
retained
in
a
medical
assistance
special
needs
15
trust
shall
be
used
in
accordance
with
a
standard
that
is
16
no
more
restrictive
than
specified
under
federal
law.
All
17
distributions
from
a
medical
assistance
special
needs
trust
18
shall
be
for
the
sole
benefit
of
the
beneficiary
to
enhance
19
the
quality
of
life
of
the
beneficiary,
and
the
trustee
shall
20
have
sole
discretion
regarding
such
disbursements
to
ensure
21
compliance
with
beneficiary
eligibility
requirements.
Any
22
funds
retained
in
the
medical
assistance
special
needs
trust
of
23
a
beneficiary
who
is
also
a
designated
beneficiary
as
defined
24
in
section
12I.1
may
be
transferred
to
the
Iowa
ABLE
savings
25
plan
trust
account
of
the
designated
beneficiary
in
accordance
26
with
this
chapter
and
chapter
12I.
Any
distinct
disbursement
in
27
excess
of
one
thousand
dollars
shall
be
subject
to
review
by
28
the
district
court
sitting
in
probate.
The
department
shall
29
adopt
rules
pursuant
to
chapter
17A
for
the
establishment
and
30
disposition
of
medical
assistance
special
needs
trusts
in
31
accordance
with
this
section
.
32
Sec.
3.
Section
634A.2,
Code
2021,
is
amended
by
adding
the
33
following
new
subsection:
34
NEW
SUBSECTION
.
8.
Any
funds
retained
in
a
supplemental
35
-1-
LSB
1093XS
(5)
89
pf/rh
1/
2
S.F.
60
needs
trust
of
a
beneficiary
who
is
also
a
designated
1
beneficiary
as
defined
in
section
12I.1
may
be
transferred
to
2
the
Iowa
ABLE
savings
plan
trust
account
of
the
designated
3
beneficiary
in
accordance
with
this
chapter
and
chapter
12I.
4
EXPLANATION
5
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
6
the
explanation’s
substance
by
the
members
of
the
general
assembly.
7
This
bill
relates
to
the
transfer
between
trusts
for
persons
8
with
disabilities.
9
The
bill
provides
that
any
funds
retained
in
a
medical
10
assistance
special
needs
trust
or
in
a
supplemental
needs
trust
11
of
a
beneficiary
with
a
disability
who
is
also
a
designated
12
beneficiary
of
an
Iowa
ABLE
saving
plan
trust
account
may
be
13
transferred
to
the
Iowa
ABLE
savings
plan
trust
account
of
the
14
designated
beneficiary
in
accordance
with
the
provisions
of
the
15
Code
chapters
applicable
to
the
specific
trusts.
16
The
disabilities
expenses
savings
plan
trust
is
also
known
17
as
the
Iowa
ABLE
savings
plan
trust
which
was
established
as
18
a
qualified
ABLE
program
under
section
529A
of
the
Internal
19
Revenue
Code.
The
purpose
of
ABLE
savings
accounts
is
to
20
encourage
and
assist
individuals
and
families
in
saving
21
private
funds
for
the
purpose
of
supporting
individuals
with
22
disabilities
to
maintain
health,
independence,
and
quality
23
of
life
and
to
provide
secure
funding
for
disability-related
24
expenses
on
behalf
of
designated
beneficiaries
with
25
disabilities
that
will
supplement,
but
not
supplant,
benefits
26
provided
through
private
insurance,
the
Medicaid
program,
27
the
federal
supplemental
security
income
program,
and
other
28
sources.
ABLE
savings
accounts
allow
eligible
individuals
the
29
opportunity
to
save
and
fund
a
variety
of
qualified
disability
30
expenses
without
endangering
eligibility
for
certain
benefits
31
such
as
Medicaid
and
supplemental
security
income.
32
-2-
LSB
1093XS
(5)
89
pf/rh
2/
2