Bill Text: HI HB2475 | 2014 | Regular Session | Introduced
Bill Title: Individuals with a Disability; Taxation; Savings Account
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-01-27 - Referred to HUS, CPC, FIN, referral sheet 7 [HB2475 Detail]
Download: Hawaii-2014-HB2475-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2475 |
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TWENTY-SEVENTH LEGISLATURE, 2014 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to persons with disabilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
"Chapter
Development accounts for persons with disabilities
§ -1 Definitions. As used in this chapter:
"Account" means an optional, interest bearing, tax-benefitted account used exclusively for the payment of qualified expenses of an eligible individual certified by a qualified physician.
"Financial institution" means an organization authorized to do business pursuant to chapter 412 or under federal laws relating to financial institutions, and includes a bank, savings bank, building and loan association, savings and loan company or association, and credit union.
"Individual with a disability" means an individual having a physical or intellectual impairment that substantially limits one or more major life activities, having a record of that impairment, or being regarded as having that impairment; provided that the disabling impairment is certified by a qualified physician.
"Qualified expenses" means expenses made for the benefit of an individual with a disability, including costs for:
(1) Education, such as tuition, books, supplies, tutors, and special education costs;
(2) Housing, such as rent, mortgage payments, real property taxes, home improvements aimed at assisting the individual with a disability, and utility charges;
(3) Transportation, such as the use of mass transit, or the purchase or modification of vehicles;
(4) Employment expenses, such as costs related to job-related training, assistive technology, and personal assistance supports;
(5) Health, prevention, and wellness, such as premiums for health insurance, mental health, medical, vision, and dental expenses; habilitation and rehabilitation services; medical equipment; long-term care services and supports; nutritional management; and other assistive medical technology or personal assistance; and
(6) Administrative costs, such as financial and administrative services, legal fees, monitoring, and funeral and burial expenses.
"Qualified physician" means:
(1) A physician or osteopathic physician licensed under chapter 453;
(2) A qualified out-of-state physician who is currently licensed to practice in the state in which the physician resides; or
(3) A commissioned medical officer in the United States Army, Navy, Marine Corps, or Public Health Service, engaged in the discharge of one's official duty.
§ -2 Tax-free savings account for individuals with a disability established; eligible individuals. (a) There is established a tax-free savings account for individuals with a disability to enable individuals with a disability and the families of individuals with a disability to save for the care of the individual, while also maintaining their status for state assistance.
(b) All individuals with a disability in the State shall be eligible for accounts under this chapter.
§ -3 Financial institutions. (a) Financial institutions may establish accounts pursuant to this chapter. The financial institution shall certify that the accounts have been established pursuant to all of the provisions of this chapter and that deposits have been made on behalf of the account holder.
(b) A financial institution establishing an individual development account shall:
(1) Keep the account in the name of the account holder;
(2) Take appropriate steps to verify the eligibility of an individual with a disability;
(3) Permit deposits to be made in the account by the following, subject to the indicated conditions:
(A) The account holder; or
(B) A contribution made on behalf of the account holder; and
(4) Take appropriate steps to verify that withdrawals are made for qualified costs.
§ -4 Assets; disregarded. The department of human services shall collaborate with account holders to ensure that the accounts as provided for in this chapter, including any earned interest, shall be disregarded in the determination of benefits or eligibility for services account holders may receive from the department of human services as allowed by federal and state laws and regulations.
The department of human services shall establish rules to be aligned with accounts.
§ -5 Tax exemption. Notwithstanding any other provision to the contrary, interest earned in amounts deposited into an account and the withdrawal of account funds shall be exempt from taxation."
SECTION 2. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Individuals with a Disability; Taxation; Savings Account
Description:
Establishes provisions allowing financial institutions to provide individuals with a disability a tax-benefitted savings account. Amounts deposited into such accounts do not affect eligibility limits for state assistance.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
