Bill Text: IL HB3360 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Amends the State Treasurer Act. Creates the "Achieving a Better Life Experience" or "ABLE" account plan to encourage and assist individuals and families in saving private funds for the purpose of supporting persons with disabilities in endeavors to maintain health, independence, and quality of life. and to provide secure funding for disability-related expenses on behalf of designated beneficiaries with disabilities that will supplement, but not supplant, benefits provided through private insurance, federal and State medical and disability insurance, the beneficiary's employment, and other sources. Provides that the State Treasurer shall be primarily responsible for the plan but shall work with the Illinois State Board of Investment. Sets forth the requirements of the plan. Requires the State Treasurer to adopt rules to implement the program. Defines required terms. Effective immediately.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2015-04-20 - Added Chief Co-Sponsor Rep. Kathleen Willis [HB3360 Detail]

Download: Illinois-2015-HB3360-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB3360 Introduced , by Rep. Laura Fine SYNOPSIS AS INTRODUCED:
15 ILCS 505/16.6 new
Amends the State Treasurer Act. Creates the "Achieving a Better Life Experience" or "ABLE" account plan to encourage and assist individuals and families in saving private funds for the purpose of supporting persons with disabilities in endeavors to maintain health, independence, and quality of life. and to provide secure funding for disability-related expenses on behalf of designated beneficiaries with disabilities that will supplement, but not supplant, benefits provided through private insurance, federal and State medical and disability insurance, the beneficiary's employment, and other sources. Provides that the State Treasurer shall be primarily responsible for the plan but shall work with the Illinois State Board of Investment. Sets forth the requirements of the plan. Requires the State Treasurer to adopt rules to implement the program. Defines required terms. Effective immediately.
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A BILL FOR
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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Treasurer Act is amended by adding
Section 16.6 as follows:
(15 ILCS 505/16.6 new)
Sec. 16.6. ABLE account program.
(a) As used in this Section,
"ABLE account" and "account" means an account established
for the purpose of financing certain qualified expenses of
persons with disabilities as set forth in this Section.
"ABLE account plan" and "plan" mean the savings account
plan provided for in this Section.
"Beneficiary" means the ABLE account owner, or the person
entitled to apply the savings accrued in an ABLE account, if
that person is not the account owner.
"Executive Director" means the Executive Director of the
Illinois State Board of Investment.
"Individual with a disability" means an individual who,
before the date on which the individual attains age 26: (1) has
a medically determinable physical or mental impairment, which
results in marked and severe functional limitations and which
can be expected to result in death, or which has lasted or can

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be expected to last for a continuous period of not less than 12
months; or (2) is blind.
"Participating financial institution" means any financial
institution insured by the Federal Deposit Insurance
Corporation and lawfully doing business in the State of
Illinois and any credit union approved by the State Treasurer
and lawfully doing business in the State of Illinois that
agrees to process new accounts in the ABLE account program.
"Qualified disability expense" means an expense made for
the benefit of an individual with a disability who is the
beneficiary of an ABLE account, which includes, but is not
limited 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 consistent with the purpose of this Section that
are approved by the Treasurer and provided for by rule.
"Qualified distribution" means a distribution from an ABLE
account used to pay for a qualified expense. "Qualified
distribution" also includes investment earnings generated by
the ABLE account.
"Qualified withdrawal" means a withdrawal from an ABLE
account to pay a qualified disability expense of the
beneficiary of the account. A qualified withdrawal may be made
by an agent of the beneficiary who has the power of attorney or

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by the beneficiary's legal guardian.
(b) The "Achieving a Better Life Experience" or "ABLE"
account plan is hereby created to encourage and assist
individuals and families in saving private funds for the
purpose of supporting persons with disabilities in endeavors to
maintain health, independence, and quality of life, and to
provide secure funding for disability-related expenses on
behalf of designated beneficiaries with disabilities that will
supplement, but not supplant, benefits provided through
private insurance, federal and State medical and disability
insurance, the beneficiary's employment, and other sources.
The Department of Human Services shall certify to the Treasurer
that a person qualifies as an individual with a disability
eligible for an ABLE account.
New accounts in the ABLE account program may be processed
through participating financial institutions. Participating
financial institutions may charge a processing fee to
participants to open an account in the program. Every
contribution received by a financial institution for
investment in the ABLE account program shall be transferred
from the financial institution to a location selected by the
State Treasurer within one business day following the day that
the funds must be made available in accordance with federal
law. All communications from the State Treasurer to
participants and donors shall reference the participating
financial institution at which the account was processed.

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The Treasurer may invest the moneys in the ABLE account
program in the same manner and in the same types of investments
provided for the investment of moneys by the Illinois State
Board of Investment. To enhance the safety and liquidity of the
ABLE account program, to ensure the diversification of the
investment portfolio of the pool, and in an effort to keep
investment dollars in the State of Illinois, the State
Treasurer may make a percentage of each account available for
investment in participating financial institutions doing
business in the State.
Under the plan, which must be operated as an accounts-type
plan, a person may make contributions to an ABLE account to
meet the qualified disability expenses incurred by or on behalf
of the designated beneficiary of the account. Contributions to
and the maximum balance of an ABLE account are subject to the
requirements of subsection (b) of section 529A of the Internal
Revenue Code. The beneficiary must be a resident of the state
in which the ABLE account is opened or in a state that has a
memorandum of understanding with another state to provide an
ABLE account. A separate account must be maintained for each
beneficiary for whom contributions are made, and no more than
one account shall be established per beneficiary. Qualified
distributions may be made directly to the account owner or
beneficiary either before or after a qualified expense is made.
Distributions from an ABLE account that are not used for a
qualified expense are subject to income tax on the portion of

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such distribution attributable to earnings from the account, in
addition to a 10% penalty. Upon the death of a beneficiary, the
amount remaining in a beneficiary's ABLE account must be
distributed in accordance with subsection (f) of section 529A
of the Internal Revenue Code. The provisions of this Section
are exempt from taxation under Section 250 of the Illinois
Income Tax Act and any other tax imposed by the State of
Illinois or any of its subdivisions so long as distributions
are used for qualified expenses.
In designing and establishing the plan's requirements and
in negotiating or entering into contracts with third parties,
the Treasurer shall consult with the Executive Director. The
Treasurer and the Executive Director shall establish an annual
fee, equal to a percentage of the average daily assets of the
plan, to be imposed on participants to recover the costs of
administration, recordkeeping, and investment management. The
State Treasurer shall administer the plan, including accepting
and processing applications, maintaining account records,
making payments, and undertaking any other necessary tasks to
administer the plan. Notwithstanding other requirements of
this Section, the State Treasurer shall adopt rules for
purposes of implementing and administering the plan and
obtaining certification of eligible beneficiaries from the
Department of Human Services.
(c) The State Treasurer shall ensure that the plan meets
the requirements for an ABLE account under Section 529 of the

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Internal Revenue Code. In doing so, the Treasurer shall adopt
rules and establish guidelines as necessary to ensure this
compliance.
(d) The State Treasurer shall promote awareness of the
availability and advantages of the ABLE account program as a
way to assist individuals and families in saving private funds
for the purpose of supporting individuals with disabilities.
The Treasurer's office shall not publicize or otherwise market
the ABLE account program or accept any moneys into the ABLE
account program until the Internal Revenue Service issues its
final regulations concerning State ABLE account programs.
(e) The State Treasurer may adopt any other rules necessary
to implement the requirements of this Section.
Section 99. Effective date. This Act takes effect upon
becoming law.