BILL NUMBER: AB 449	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 19, 2015

INTRODUCED BY   Assembly Member Irwin
    (   Principal coauthor:   Assembly Member
  Wilk  ) 
    (   Principal coauthor:   Senator 
 Pavley   ) 
   (Coauthors: Assembly Members  Brown,  Chávez,
Maienschein, Steinorth, and Waldron)
   (Coauthors: Senators  Allen   
 and Anderson   Allen,   Anderson,
  and Vidak  )

                        FEBRUARY 23, 2015

   An act  to add Sections 17140.4 and 23711.4 to the Revenue and
Taxation Code, and to add Chapter 15 (commencing with Section 4875)
to Division 4.5 of the Welfare and Institutions Code,   relating
to  public social services.   taxation. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 449, as amended, Irwin.  Individuals with disabilities:
savings accounts.   Income taxation: savings plans:
Qualified ABLE Program.  
   The Personal Income Tax Law and the Corporation Income Tax Law, in
specified conformity with federal income tax laws regarding
qualified tuition programs, provide that distributions from a
qualified tuition program are generally not included in the income of
the donor or the beneficiary, as specified.  
   Existing federal law, the Stephen Beck Jr., Achieving a Better
Life Experience Act of 2014 (ABLE) Act, for taxable years beginning
on or after January 1, 2015, encourages and assists individuals and
families to save private funds 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 beneficiary of a qualified ABLE
program established and maintained by a state, as specified. 

   This bill would conform to these federal income tax law provisions
relating to the ABLE Act under the Personal Income Tax Law and the
Corporation Income Tax Law, as provided. The bill would also
establish in state government a qualified ABLE program and the
Qualified ABLE Fund for purposes of implementing the federal ABLE
Act. The bill would require the Treasurer to administer the program
in compliance with the requirements of the federal ABLE Act. 

   Existing law provides for the State Supplementary Program for the
Aged, Blind and Disabled (SSP), which requires the State Department
of Social Services to contract with the United States Secretary of
Health and Human Services to make payments to SSP recipients to
supplement supplemental security income (SSI) payments made available
pursuant to the federal Social Security Act. Existing law also
declares that an array of services and supports should be established
that is sufficiently complete to meet the needs and choices of each
person with developmental disabilities to support their integration
into the mainstream life of the community. Existing federal law, the
Achieving a Better Life Experience (ABLE) Act, would create tax-free
savings accounts for individuals with disabilities. The ABLE Act aims
to ease financial strains faced by individuals with disabilities by
making tax-free savings accounts available to cover qualified
expenses.  
   This bill would express the intent of the Legislature to enact
legislation that would implement the federal ABLE Act in California
to ensure that people with disabilities can save for the future to
achieve greater independence. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SEC   TION 1.    It is the intent of the
Legislature to further the purposes of the federal Stephen Beck Jr.,
Achieving a Better Life Experience Act to ensure that people with
disabilities may save for the future to achieve greater independence.

   SEC. 2.    This act shall be known, and may be cited,
as the California Achieving a Better Life Experience Act. 
   SEC. 3.    Section 17140.4 is added to the 
Revenue and Taxation Code   , to read:  
   17140.4.  Section 529A of the Internal Revenue Code, relating to
qualified ABLE programs, as enacted by Section 102 of Public Law
113-295, shall apply, except as otherwise provided.
   (a) Section 529A of the Internal Revenue Code is modified as
follows:
   (1) By substituting the phrase "under this part and Part 11
(commencing with Section 23001)" in lieu of the phrase "under this
subtitle."
   (2) By substituting "Article 2 (commencing with Section 23731)" in
lieu of "Section 511."
   (b) A copy of the report required to be filed with the Secretary
of the Treasury under Section 529A(g) of the Internal Revenue Code
shall be filed with the Franchise Tax Board at the same time and in
the same manner as specified in that section. 
   SEC. 4.    Section 23711.4 is added to the  
Revenue and Taxation Code   , to read:  
   23711.4.  Section 529A of the Internal Revenue Code, relating to
qualified ABLE programs, as enacted by Section 102 of Public Law
113-295, shall apply, except as otherwise provided.
   (a) Section 529A of the internal Revenue Code is modified as
follows:
   (1) By substituting the phrase "under Part 10 (commencing with
Section 17001) and this part" in lieu of the phrase "under this
subtitle."
   (2) By substituting "Article 2 (commencing with Section 23731)" in
lieu of "Section 511."
   (b) A copy of the report required to be filed with the Secretary
of the Treasury under Section 529A(g) of the Internal Revenue Code
shall be filed with the Franchise Tax Board at the same time and in
the same manner as specified in that section. 
   SEC. 5.    Chapter 15 (commencing with Section 4875)
is added to Division 4.5 of the   Welfare and Institutions
Code   , to read:  
      CHAPTER 15.  QUALIFIED ABLE PROGRAM


   4875.  For purposes of this chapter:
   (a) "ABLE account" or "account" means the account an eligible
individual makes contributions to pursuant to this chapter for the
purpose of meeting the qualified disability expenses of the
designated beneficiary of the account.
   (b) "ABLE fund" or "fund" means the fund established by this
chapter for purposes of implementing the federal ABLE Act.
   (c) "Designated beneficiary" means the eligible individual who
established an ABLE account and is the owner of the account.
   (d) "Eligible individual" means an individual who is eligible
under the program for a taxable year if during that taxable year both
of the following criteria are met:
   (1) The individual is entitled to benefits based on blindness or
disability under Title II or XVI of the federal Social Security Act,
and that blindness or disability occurred before the date on which
the individual attained 26 years of age.
   (2) A disability certification, as defined in the federal ABLE
Act, with respect to the individual is filed pursuant to the
requirements set forth in the federal ABLE Act.
   (e) "Federal ABLE Act" means the federal Stephen Beck Jr.,
Achieving a Better Life Experience Act of 2014.
   (f) "Qualified ABLE program" or "program" means the program
established by this chapter to implement the federal ABLE act
pursuant to Section 529A of the Internal Revenue Code.
   (g) "Qualified disability expenses" means any expenses related to
the eligible individual's blindness or disability that are made for
the benefit of an eligible individual who is the designated
beneficiary, including expenses related to education, housing,
transportation, employment training and support, assistive technology
and personal support services, health, prevention and wellness,
financial management and administrative services, legal fees,
expenses for oversight and monitoring, funeral and burial expenses,
and other expenses, which are approved by the Secretary of the
Treasury under regulations and consistent with the purposes of the
federal ABLE Act.
   4876.  (a) There is hereby established in state government a
qualified ABLE program and the Qualified ABLE Fund for purposes of
implementing the federal ABLE Act pursuant to Section 529A of the
Internal Revenue Code.
   (b) The qualified ABLE program shall be administered by the
Treasurer, who shall be responsible for ensuring that the program is
administered in compliance with the requirements of the federal ABLE
Act.
   4877.  Under the program, a person may make contributions for a
taxable year, for the benefit of an individual who is an eligible
individual for that taxable year, to an ABLE account that is
established for the purpose of meeting the qualified disability
expenses of the designated beneficiary of the account, if both of the
following criteria are met:
   (a) The designated beneficiary is limited to one ABLE account for
purposes of this chapter.
   (b) The ABLE account is established only for a designated
beneficiary who is a resident of this state.
   4878.  Notwithstanding any other law, money in an ABLE account
shall not count towards determining eligibility for a state or local
means-tested program.
   4879.  (a) The Treasurer may adopt regulations to implement this
chapter.
   (b) The Treasurer shall adopt regulations to track all ABLE
accounts in California.  
  SECTION 1.    It is the intent of the Legislature
to enact legislation that would implement the federal Achieving
Better Life Experience (ABLE) Act in California to ensure that people
with disabilities may save for the future to achieve greater
independence.