Bill Text: IL HB3500 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the School Code. Provides that beginning with the 2026-2027 school year, a school district shall provide informational materials about the Illinois Achieving a Better Life Experience (ABLE) account program (rather than the Achieving a Better Life Experience (ABLE) account program) annually to the parent or guardian of a student who has a section 504 Plan under the federal Rehabilitation Act of 1973, using the same distribution methods employed for other communications related to the student's section 504 Plan. Removes language providing that a school may transmit the informational material to a parent or guardian in the same manner as other documents and information related to an Individualized Education Program meeting are provided to the parent or guardian. Amends the Department of Early Childhood Act and the Early Intervention Services System Act. In provisions requiring individualized family service plans for children receiving early intervention services, provides that during the initial development of an individual family service plan and at each review meeting of the service plan, the regional intake offices shall provide the parent or guardian with informational materials about the Illinois (ABLE) account program. Requires the informational materials to include an overview of the Illinois ABLE account program, eligibility criteria, and other necessary enrollment information. Requires the Office of the State Treasurer to prepare and deliver the informational materials about the Illinois ABLE account for distribution to regional intake offices which shall subsequently disseminate the informational materials to parents and guardians in the same manner as they transmit other documents to families. Makes technical changes to the State Treasurer Act to change the name of the Achieving a Better Life Experience (ABLE) account program to the Illinois Achieving a Better Life Experience (ABLE) account program.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-07 - Filed with the Clerk by Rep. Suzanne M. Ness [HB3500 Detail]

Download: Illinois-2025-HB3500-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3500 Introduced , by Rep. Suzanne M. Ness SYNOPSIS AS INTRODUCED:
5 ILCS 70/1.46 new
15 ILCS 505/16.5
15 ILCS 505/16.6
105 ILCS 5/14-8.02i
325 ILCS 3/10-65
325 ILCS 20/11 from Ch. 23, par. 4161
Amends the School Code. Provides that beginning with the 2026-2027 school year, a school district shall provide informational materials about the Illinois Achieving a Better Life Experience (ABLE) account program (rather than the Achieving a Better Life Experience (ABLE) account program) annually to the parent or guardian of a student who has a section 504 Plan under the federal Rehabilitation Act of 1973, using the same distribution methods employed for other communications related to the student's section 504 Plan. Removes language providing that a school may transmit the informational material to a parent or guardian in the same manner as other documents and information related to an Individualized Education Program meeting are provided to the parent or guardian. Amends the Department of Early Childhood Act and the Early Intervention Services System Act. In provisions requiring individualized family service plans for children receiving early intervention services, provides that during the initial development of an individual family service plan and at each review meeting of the service plan, the regional intake offices shall provide the parent or guardian with informational materials about the Illinois (ABLE) account program. Requires the informational materials to include an overview of the Illinois ABLE account program, eligibility criteria, and other necessary enrollment information. Requires the Office of the State Treasurer to prepare and deliver the informational materials about the Illinois ABLE account for distribution to regional intake offices which shall subsequently disseminate the informational materials to parents and guardians in the same manner as they transmit other documents to families. Makes technical changes to the State Treasurer Act to change the name of the Achieving a Better Life Experience (ABLE) account program to the Illinois Achieving a Better Life Experience (ABLE) account program.
LRB104 10352 KTG 20426 b
A BILL FOR
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AN ACT concerning children.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. The Statute on Statutes is amended by adding
Section 1.46 as follows:
(5 ILCS 70/1.46 new)
Sec. 1.46. References to the ABLE account. Except where
the context indicates otherwise, a reference in any Act to the
Achieving a Better Life Experience (ABLE) account program or a
similar reference shall be considered to be a reference to the
Illinois Achieving a Better Life Experience (ABLE) account
program.
Section 5. The State Treasurer Act is amended by changing
Sections 16.5 and 16.6 as follows:
(15 ILCS 505/16.5)
Sec. 16.5. College Savings Pool.
(a) Definitions. As used in this Section:
"Account owner" means any person or entity who has opened
an account or to whom ownership of an account has been
transferred, as allowed by the Internal Revenue Code, and who
has authority to withdraw funds, direct withdrawal of funds,

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change the designated beneficiary, or otherwise exercise
control over an account in the College Savings Pool.
"Donor" means any person or entity who makes contributions
to an account in the College Savings Pool.
"Designated beneficiary" means any individual designated
as the beneficiary of an account in the College Savings Pool by
an account owner. A designated beneficiary must have a valid
social security number or taxpayer identification number. In
the case of an account established as part of a scholarship
program permitted under Section 529 of the Internal Revenue
Code, the designated beneficiary is any individual receiving
benefits accumulated in the account as a scholarship.
"Eligible educational institution" means public and
private colleges, junior colleges, graduate schools, and
certain vocational institutions that are described in Section
1001 of the Higher Education Resource and Student Assistance
Chapter of Title 20 of the United States Code (20 U.S.C. 1001)
and that are eligible to participate in Department of
Education student aid programs.
"Member of the family" has the same meaning ascribed to
that term under Section 529 of the Internal Revenue Code.
"Nonqualified withdrawal" means a distribution from an
account other than a distribution that (i) is used for the
qualified expenses of the designated beneficiary; (ii) results
from the beneficiary's death or disability; (iii) is a
rollover to another account in the College Savings Pool; (iv)

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is a rollover to an Illinois ABLE account, as defined in
Section 16.6 of this Act, or any distribution that, within 60
days after such distribution, is transferred to an Illinois
ABLE account of the designated beneficiary or a member of the
family of the designated beneficiary to the extent that the
distribution, when added to all other contributions made to
the Illinois ABLE account for the taxable year, does not
exceed the limitation under Section 529A(b) of the Internal
Revenue Code; or (v) is a rollover to a Roth IRA account to the
extent permitted by Section 529 of the Internal Revenue Code.
"Qualified expenses" means: (i) tuition, fees, and the
costs of books, supplies, and equipment required for
enrollment or attendance at an eligible educational
institution; (ii) expenses for special needs services, in the
case of a special needs beneficiary, which are incurred in
connection with such enrollment or attendance; (iii) certain
expenses, to the extent they qualify as qualified higher
education expenses under Section 529 of the Internal Revenue
Code, for the purchase of computer or peripheral equipment or
Internet access and related services, if such equipment,
software, or services are to be used primarily by the
beneficiary during any of the years the beneficiary is
enrolled at an eligible educational institution, except that,
such expenses shall not include expenses for computer software
designed for sports, games, or hobbies, unless the software is
predominantly educational in nature; (iv) room and board

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expenses incurred while attending an eligible educational
institution at least half-time; (v) expenses for fees, books,
supplies, and equipment required for the participation of a
designated beneficiary in an apprenticeship program registered
and certified with the Secretary of Labor under the National
Apprenticeship Act (29 U.S.C. 50); and (vi) amounts paid as
principal or interest on any qualified education loan of the
designated beneficiary or a sibling of the designated
beneficiary, as allowed under Section 529 of the Internal
Revenue Code. A student shall be considered to be enrolled at
least half-time if the student is enrolled for at least half
the full-time academic workload for the course of study the
student is pursuing as determined under the standards of the
institution at which the student is enrolled.
(b) Establishment of the Pool. The State Treasurer may
establish and administer the College Savings Pool as a
qualified tuition program under Section 529 of the Internal
Revenue Code. The Pool may consist of one or more college
savings programs. The State Treasurer, in administering the
College Savings Pool, may: (1) receive, hold, and invest
moneys paid into the Pool; and (2) perform any other action he
or she deems necessary to administer the Pool, including any
other actions necessary to ensure that the Pool operates as a
qualified tuition program in accordance with Section 529 of
the Internal Revenue Code.
(c) Administration of the College Savings Pool. The State

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Treasurer may delegate duties related to the College Savings
Pool to one or more contractors. The contributions deposited
in the Pool, and any earnings thereon, shall not constitute
property of the State or be commingled with State funds and the
State shall have no claim to or against, or interest in, such
funds; provided that the fees collected by the State Treasurer
in accordance with this Act, scholarship programs administered
by the State Treasurer, and seed funds deposited by the State
Treasurer under Section 16.8 of the Act are State funds.
(c-5) College Savings Pool Account Summaries. The State
Treasurer shall provide a separate accounting for each
designated beneficiary. The separate accounting shall be
provided to the account owner of the account for the
designated beneficiary at least annually and shall show the
account balance, the investment in the account, the investment
earnings, and the distributions from the account.
(d) Availability of the College Savings Pool. The State
Treasurer may permit persons, including trustees of trusts and
custodians under a Uniform Transfers to Minors Act or Uniform
Gifts to Minors Act account, and certain legal entities to be
account owners, including as part of a scholarship program,
provided that: (1) an individual, trustee or custodian must
have a valid social security number or taxpayer identification
number, be at least 18 years of age, and have a valid United
States street address; and (2) a legal entity must have a valid
taxpayer identification number and a valid United States

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street address. In-state and out-of-state persons, trustees,
custodians, and legal entities may be account owners and
donors, and both in-state and out-of-state individuals may be
designated beneficiaries in the College Savings Pool.
(e) Fees. Any fees, costs, and expenses, including
investment fees and expenses and payments to third parties,
related to the College Savings Pool, shall be paid from the
assets of the College Savings Pool. The State Treasurer shall
establish fees to be imposed on accounts to cover such fees,
costs, and expenses, to the extent not paid directly out of the
investments of the College Savings Pool, and to maintain an
adequate reserve fund in line with industry standards for
government operated funds. The Treasurer must use his or her
best efforts to keep these fees as low as possible and
consistent with administration of high quality competitive
college savings programs.
(f) Investments in the State. To enhance the safety and
liquidity of the College Savings Pool, to ensure the
diversification of the investment portfolio of the College
Savings 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.
(g) Investment policy. The Treasurer shall develop,
publish, and implement an investment policy covering the

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investment of the moneys in each of the programs in the College
Savings Pool. The policy shall be published each year as part
of the audit of the College Savings Pool by the Auditor
General, which shall be distributed to all account owners in
such program. The Treasurer shall notify all account owners in
such program in writing, and the Treasurer shall publish in a
newspaper of general circulation in both Chicago and
Springfield, any changes to the previously published
investment policy at least 30 calendar days before
implementing the policy. Any investment policy adopted by the
Treasurer shall be reviewed and updated if necessary within 90
days following the date that the State Treasurer takes office.
(h) Investment restrictions. An account owner may,
directly or indirectly, direct the investment of his or her
account only as provided in Section 529(b)(4) of the Internal
Revenue Code. Donors and designated beneficiaries, in those
capacities, may not, directly or indirectly, direct the
investment of an account.
(i) Distributions. Distributions from an account in the
College Savings Pool may be used for the designated
beneficiary's qualified expenses, and if not used in that
manner, may be considered a nonqualified withdrawal. Funds
contained in a College Savings Pool account may be rolled over
into:
(1) an eligible Illinois ABLE account, as defined in
Section 16.6 of this Act to the extent permitted by

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Section 529 of the Internal Revenue Code;
(2) another qualified tuition program, to the extent
permitted by Section 529 of the Internal Revenue Code; or
(3) a Roth IRA account, to the extent permitted by
Section 529 of the Internal Revenue Code.
Distributions made from the College Savings Pool may be
made directly to the eligible educational institution,
directly to a vendor, in the form of a check payable to both
the designated beneficiary and the institution or vendor,
directly to the designated beneficiary or account owner, or in
any other manner that is permissible under Section 529 of the
Internal Revenue Code.
(j) Contributions. Contributions to the College Savings
Pool shall be as follows:
(1) Contributions to an account in the College Savings
Pool may be made only in cash.
(2) The Treasurer shall limit the contributions that
may be made to the College Savings Pool on behalf of a
designated beneficiary, as required under Section 529 of
the Internal Revenue Code, to prevent contributions for
the benefit of a designated beneficiary in excess of those
necessary to provide for the qualified expenses of the
designated beneficiary. The Pool shall not permit any
additional contributions to an account as soon as the sum
of (i) the aggregate balance in all accounts in the Pool
for the designated beneficiary and (ii) the aggregate

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contributions in the Illinois Prepaid Tuition Program for
the designated beneficiary reaches the specified balance
limit established from time to time by the Treasurer.
(k) Illinois Student Assistance Commission. The Treasurer
and the Illinois Student Assistance Commission shall each
cooperate in providing each other with account information, as
necessary, to prevent contributions in excess of those
necessary to provide for the qualified expenses of the
designated beneficiary, as described in subsection (j).
The Treasurer shall work with the Illinois Student
Assistance Commission to coordinate the marketing of the
College Savings Pool and the Illinois Prepaid Tuition Program
when considered beneficial by the Treasurer and the Director
of the Illinois Student Assistance Commission.
(l) Prohibition; exemption. No interest in the program, or
any portion thereof, may be used as security for a loan. Moneys
held in an account invested in the College Savings Pool shall
be exempt from all claims of the creditors of the account
owner, donor, or designated beneficiary of that account,
except for the non-exempt College Savings Pool transfers to or
from the account as defined under subsection (j) of Section
12-1001 of the Code of Civil Procedure.
(m) Taxation. The assets of the College Savings Pool and
its income and operation shall be exempt from all taxation by
the State of Illinois and any of its subdivisions. The accrued
earnings on investments in the Pool once disbursed on behalf

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of a designated beneficiary shall be similarly exempt from all
taxation by the State of Illinois and its subdivisions, so
long as they are used for qualified expenses. Contributions to
a College Savings Pool account during the taxable year may be
deducted from adjusted gross income as provided in Section 203
of the Illinois Income Tax Act. The provisions of this
paragraph are exempt from Section 250 of the Illinois Income
Tax Act.
(n) Rules. The Treasurer shall adopt rules he or she
considers necessary for the efficient administration of the
College Savings Pool. The rules shall provide whatever
additional parameters and restrictions are necessary to ensure
that the College Savings Pool meets all the requirements for a
qualified tuition program under Section 529 of the Internal
Revenue Code.
Notice of any proposed amendments to the rules and
regulations shall be provided to all account owners prior to
adoption.
(o) Bond. The State Treasurer shall give bond with at
least one surety, payable to and for the benefit of the account
owners in the College Savings Pool, in the penal sum of
$10,000,000, conditioned upon the faithful discharge of his or
her duties in relation to the College Savings Pool.
(p) The changes made to subsections (c) and (e) of this
Section by Public Act 101-26 are intended to be a restatement
and clarification of existing law.

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(Source: P.A. 102-186, eff. 7-30-21; 103-778, eff. 8-2-24.)
(15 ILCS 505/16.6)
Sec. 16.6. Illinois ABLE account program.
(a) As used in this Section:
"Illinois ABLE account" or "account" means an account
established for the purpose of financing certain qualified
expenses of eligible individuals as specifically provided for
in this Section and authorized by Section 529A of the Internal
Revenue Code.
"Illinois ABLE account plan" or "plan" means the savings
account plan provided for in this Section.
"Account administrator" means the person or entity
selected by the State Treasurer to administer the daily
operations of the Illinois ABLE account plan and provide
marketing, recordkeeping, investment management, and other
services for the plan.
"Aggregate account balance" means the amount in an account
on a particular date or the fair market value of an account on
a particular date.
"Beneficiary" or "designated beneficiary" means the
Illinois ABLE account owner.
"Contracting state" means a state without a qualified
Illinois ABLE program which has entered into a contract with
Illinois to provide residents of the contracting state access
to a qualified Illinois ABLE program.

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"Designated representative" means a person or entity who
is authorized to act on behalf of a "designated beneficiary".
A designated beneficiary is authorized to act on his or her own
behalf unless the designated beneficiary is a minor or the
designated beneficiary has been adjudicated to have a
disability so that a guardian has been appointed. A designated
representative acts in a fiduciary capacity to the designated
beneficiary. A person or entity seeking to open an Illinois
ABLE account on behalf of a designated beneficiary must
provide certification, subject to penalties of perjury, of the
basis for the person's or entity's authority to act as a
designated representative and that there is no other person or
entity with higher priority to establish the Illinois ABLE
account under Section 529A of the Internal Revenue Code and
federal regulations.
"Disability certification" has the meaning given to that
term under Section 529A of the Internal Revenue Code.
"Eligible individual" has the meaning given to that term
under Section 529A of the Internal Revenue Code.
"Internal Revenue Code" means the federal Internal Revenue
Code.
"Participation agreement" means an agreement to
participate in the Illinois ABLE account plan between a
designated beneficiary and the State, through its agencies and
the State Treasurer.
"Qualified disability expenses" has the meaning given to

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that term under Section 529A of the Internal Revenue Code.
"Qualified withdrawal" or "qualified distribution" means a
withdrawal from an Illinois ABLE account to pay the qualified
disability expenses of the beneficiary of the account.
(b) Establishment of the Illinois ABLE Program. The
"Illinois Achieving a Better Life Experience" or "Illinois
ABLE" account program is hereby created and shall be
administered by the State Treasurer. The purpose of the
Illinois ABLE program is to encourage and assist individuals
and families in saving private funds for the purpose of
supporting individuals with disabilities 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.
Under the plan, a person or entity may make contributions to an
Illinois ABLE account to meet the qualified disability
expenses of the designated beneficiary of the account. The
plan must be operated as an accounts-type plan that permits
saving for qualified disability expenses incurred by or on
behalf of an eligible individual.
(c) Promotion of the Illinois ABLE Program. The State
Treasurer shall promote awareness of the availability and
advantages of the Illinois ABLE account plan as a way to assist

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individuals and families in saving private funds for the
purpose of supporting individuals with disabilities.
(d) Availability of the ABLE Program. An Illinois ABLE
account may be established under this Section for a designated
beneficiary who is a resident of Illinois, a resident of a
contracting state, or a resident of any other state.
Annual contributions to an Illinois ABLE account on behalf
of a beneficiary are subject to the requirements of subsection
(b) of Section 529A of the Internal Revenue Code. No person or
entity may make a contribution to an Illinois ABLE account if
such a contribution would result in the aggregate account
balance of an ABLE account exceeding the account balance limit
authorized under Section 529A of the Internal Revenue Code.
The Treasurer shall review the contribution limit at least
annually. 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. If an
Illinois ABLE account is established for a designated
beneficiary, no account subsequently established for such
beneficiary shall be treated as an Illinois ABLE account. The
preceding sentence shall not apply in the case of an Illinois
ABLE account established for purposes of a rollover as
permitted under Sections 529 and 529A of the Internal Revenue
Code.
(e) Administration of the Illinois ABLE Program. The State
Treasurer shall administer the plan, including accepting and

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processing applications, maintaining account records, making
payments, and undertaking any other necessary tasks to
administer the plan, including the appointment of an account
administrator. The State Treasurer may contract with one or
more third parties to carry out some or all of these
administrative duties, including, but not limited to,
providing investment management services, incentives, and
marketing the plan. The State Treasurer may enter into
agreements with other states to either allow Illinois
residents to participate in a plan operated by another state
or to allow residents of other states to participate in the
Illinois ABLE plan. The State Treasurer may require any
certifications that he or she deems necessary to implement the
program, including oaths or affirmations made under penalties
of perjury.
(f) Fees. The State Treasurer may establish fees to be
imposed on participants to cover the costs of administration,
recordkeeping, and investment management. The State Treasurer
must use his or her best efforts to keep these fees as low as
possible, consistent with efficient administration.
(g) The Illinois ABLE Accounts Administrative Fund. The
Illinois ABLE Accounts Administrative Fund is created as a
nonappropriated trust fund in the State treasury. The State
Treasurer shall use moneys in the Administrative Fund to cover
administrative expenses incurred under this Section. The
Administrative Fund may receive any grants or other moneys

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designated for administrative purposes from the State, or any
unit of federal, state, or local government, or any other
person, firm, partnership, or corporation. Any interest
earnings that are attributable to moneys in the Administrative
Fund must be deposited into the Administrative Fund. Any fees
established by the State Treasurer to cover the costs of
administration, recordkeeping, and investment management shall
be deposited into the Administrative Fund.
Subject to appropriation, the State Treasurer may pay
administrative costs associated with the creation and
management of the plan until sufficient assets are available
in the Administrative Fund for that purpose.
(h) Privacy. Applications for accounts and other records
obtained or compiled by the Treasurer or the Treasurer's
agents reflecting designated beneficiary information, account
information, or designated representative information are
confidential and exempt from disclosure under the Freedom of
Information Act.
(i) Investment Policy. The Treasurer shall prepare and
adopt a written statement of investment policy that includes a
risk management and oversight program which shall be reviewed
annually and posted on the Treasurer's website prior to
implementation. The risk management and oversight program
shall be designed to ensure that an effective risk management
system is in place to monitor the risk levels of the Illinois
ABLE plan, to ensure that the risks taken are prudent and

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properly managed, to provide an integrated process for overall
risk management, and to assess investment returns as well as
risk to determine if the risks taken are adequately
compensated compared to applicable performance benchmarks and
standards. To enhance the safety and liquidity of Illinois
ABLE accounts, to ensure the diversification of the investment
portfolio of accounts, and in an effort to keep investment
dollars in the State, the State Treasurer may make a
percentage of each account available for investment in
participating financial institutions doing business in the
State, except that the accounts may be invested without limit
in investment options from open-ended investment companies
registered under Section 80a of the federal Investment Company
Act of 1940. The State Treasurer may contract with one or more
third parties for investment management, recordkeeping, or
other services in connection with investing the accounts.
(j) Investment restrictions. The State Treasurer shall
ensure that the plan meets the requirements for an Illinois
ABLE account under Section 529A of the Internal Revenue Code.
The State Treasurer may request a private letter ruling or
rulings from the Internal Revenue Service and must take any
necessary steps to ensure that the plan qualifies under
relevant provisions of federal law. Notwithstanding the
foregoing, any determination by the Secretary of the Treasury
of the United States that an account was utilized to make
non-qualified distributions shall not result in an Illinois

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ABLE account being disregarded as a resource.
(k) Contributions. A person or entity may make
contributions to an Illinois ABLE account on behalf of a
beneficiary. Contributions to an account made by persons or
entities other than the designated beneficiary become the
property of the designated beneficiary. Contributions to an
account shall be considered as a transfer of assets for fair
market value. A person or entity does not acquire an interest
in an Illinois ABLE account by making contributions to an
account. A contribution to any account for a beneficiary must
be rejected if the contribution would cause either the
aggregate or annual account balance of the account to exceed
the limits imposed by Section 529A of the Internal Revenue
Code.
Any change in designated beneficiary must be done in a
manner consistent with Section 529A of the Internal Revenue
Code.
(l) Notice. Notice of any proposed amendments to the rules
and regulations shall be provided to all designated
beneficiaries or their designated representatives prior to
adoption. Amendments to rules and regulations shall apply only
to contributions made after the adoption of the amendment.
Amendments to this Section automatically amend the
participation agreement. Any amendments to the operating
procedures and policies of the plan shall automatically amend
the participation agreement after adoption by the State

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Treasurer.
(m) Plan assets. All assets of the plan, including any
contributions to accounts, are held in trust for the exclusive
benefit of the designated beneficiary and shall be considered
spendthrift accounts exempt from all of the designated
beneficiary's creditors. The plan shall provide separate
accounting for each designated beneficiary sufficient to
satisfy the requirements of paragraph (3) of subsection (b) of
Section 529A of the Internal Revenue Code. Assets must be held
in either a state trust fund outside the State treasury, to be
known as the Illinois ABLE plan trust fund, or in accounts with
a third-party provider selected pursuant to this Section.
Amounts contributed to Illinois ABLE accounts shall not be
commingled with State funds and the State shall have no claim
to or against, or interest in, such funds.
Plan assets are not subject to claims by creditors of the
State and are not subject to appropriation by the State.
Payments from the Illinois ABLE account plan shall be made
under this Section.
The assets of Illinois ABLE accounts and their income may
not be used as security for a loan.
(n) Taxation. The assets of Illinois ABLE accounts and
their income and operation shall be exempt from all taxation
by the State of Illinois and any of its subdivisions to the
extent exempt from federal income taxation. The accrued
earnings on investments in an Illinois ABLE account once

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disbursed on behalf of a designated beneficiary shall be
similarly exempt from all taxation by the State of Illinois
and its subdivisions to the extent exempt from federal income
taxation, so long as they are used for qualified expenses.
Notwithstanding any other provision of law that requires
consideration of one or more financial circumstances of an
individual, for the purpose of determining eligibility to
receive, or the amount of, any assistance or benefit
authorized by such provision to be provided to or for the
benefit of such individual, any amount, including earnings
thereon, in the Illinois ABLE account of such individual, any
contributions to the Illinois ABLE account of the individual,
and any distribution for qualified disability expenses shall
be disregarded for such purpose with respect to any period
during which such individual maintains, makes contributions
to, or receives distributions from such Illinois ABLE account.
(o) Distributions. The designated beneficiary or the
designated representative of the designated beneficiary may
make a qualified distribution for the benefit of the
designated beneficiary. Qualified distributions shall be made
for qualified disability expenses allowed pursuant to Section
529A of the Internal Revenue Code. Qualified distributions
must be withdrawn proportionally from contributions and
earnings in a designated beneficiary's account on the date of
distribution as provided in Section 529A of the Internal
Revenue Code. Unless prohibited by federal law, upon the death

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of a designated beneficiary, proceeds from an account may be
transferred to the estate of a designated beneficiary, or to
an account for another eligible individual specified by the
designated beneficiary or the estate of the designated
beneficiary, or transferred pursuant to a payable on death
account agreement. A payable on death account agreement may be
executed by the designated beneficiary or a designated
representative who has been granted such power. Upon the death
of a designated beneficiary, prior to distribution of the
balance to the estate, account for another eligible
individual, or transfer pursuant to a payable on death account
agreement, the State Treasurer may require verification that
the funeral and burial expenses of the designated beneficiary
have been paid. An agency or instrumentality of the State may
not seek payment under subsection (f) of Section 529A of the
federal Internal Revenue Code from the account or its proceeds
for benefits provided to a designated beneficiary.
(p) Rules. The State Treasurer may adopt rules to carry
out the purposes of this Section. The State Treasurer shall
further have the power to issue peremptory rules necessary to
ensure that Illinois ABLE accounts meet all of the
requirements for a qualified state Illinois ABLE program under
Section 529A of the Internal Revenue Code and any regulations
issued by the Internal Revenue Service.
(q) Name. The Illinois ABLE Account Program may also be
referred to as the Senator Scott Bennett ABLE Program.

HB3500 - 22 - LRB104 10352 KTG 20426 b
(Source: P.A. 102-392, eff. 8-16-21; 102-1024, eff. 5-27-22;
103-256, eff. 6-30-23.)
Section 10. The School Code is amended by changing Section
14-8.02i as follows:
(105 ILCS 5/14-8.02i)
Sec. 14-8.02i. Illinois ABLE account program information.
Beginning with the 2026-2027 school year Beginning with the
2023-2024 school year, a school district shall provide
informational materials material about the Illinois Achieving
a Better Life Experience (ABLE) account program established
under Section 16.6 of the State Treasurer Act:
(1) to the parent or guardian of a student at the
student's annual individualized education program (IEP)
review meeting, whether the annual review meeting is held
in person, convened remotely, or convened in any other
manner, using the same distribution methods employed to
transmit other documents and information related to an IEP
meeting to the parent or guardian; and .
(2) annually to the parent or guardian of a student
who has a section 504 Plan under the federal
Rehabilitation Act of 1973, using the same distribution
methods employed for other communications related to the
student's section 504 Plan.
The Office of the State Treasurer shall prepare and

HB3500 - 23 - LRB104 10352 KTG 20426 b
deliver the informational materials material to the State
Board of Education, and the State Board of Education shall
distribute the materials informational material to school
districts.
A school may transmit the informational material to a
parent or guardian in the same manner as other documents and
information related to an IEP meeting are provided to the
parent or guardian.
(Source: P.A. 102-841, eff. 5-13-22.)
Section 15. The Department of Early Childhood Act is
amended by changing Section 10-65 as follows:
(325 ILCS 3/10-65)
Sec. 10-65. Individualized Family Service Plans.
(a) Each eligible infant or toddler and that infant's or
toddler's family shall receive:
(1) timely, comprehensive, multidisciplinary
assessment of the unique strengths and needs of each
eligible infant and toddler, and assessment of the
concerns and priorities of the families to appropriately
assist them in meeting their needs and identify supports
and services to meet those needs; and
(2) a written Individualized Family Service Plan
developed by a multidisciplinary team which includes the
parent or guardian. The individualized family service plan

HB3500 - 24 - LRB104 10352 KTG 20426 b
shall be based on the multidisciplinary team's assessment
of the resources, priorities, and concerns of the family
and its identification of the supports and services
necessary to enhance the family's capacity to meet the
developmental needs of the infant or toddler, and shall
include the identification of services appropriate to meet
those needs, including the frequency, intensity, and
method of delivering services. During and as part of the
initial development of the individualized family services
plan, and any periodic reviews of the plan, the
multidisciplinary team may seek consultation from the lead
agency's designated experts, if any, to help determine
appropriate services and the frequency and intensity of
those services. All services in the individualized family
services plan must be justified by the multidisciplinary
assessment of the unique strengths and needs of the infant
or toddler and must be appropriate to meet those needs. At
the periodic reviews, the team shall determine whether
modification or revision of the outcomes or services is
necessary.
(b) The Individualized Family Service Plan shall be
evaluated once a year and the family shall be provided a review
of the Plan at 6-month intervals or more often where
appropriate based on infant or toddler and family needs. The
lead agency shall create a quality review process regarding
Individualized Family Service Plan development and changes

HB3500 - 25 - LRB104 10352 KTG 20426 b
thereto, to monitor and help ensure that resources are being
used to provide appropriate early intervention services.
(c) The initial evaluation and initial assessment and
initial Plan meeting must be held within 45 days after the
initial contact with the early intervention services system.
The 45-day timeline does not apply for any period when the
child or parent is unavailable to complete the initial
evaluation, the initial assessments of the child and family,
or the initial Plan meeting, due to exceptional family
circumstances that are documented in the child's early
intervention records, or when the parent has not provided
consent for the initial evaluation or the initial assessment
of the child despite documented, repeated attempts to obtain
parental consent. As soon as exceptional family circumstances
no longer exist or parental consent has been obtained, the
initial evaluation, the initial assessment, and the initial
Plan meeting must be completed as soon as possible. With
parental consent, early intervention services may commence
before the completion of the comprehensive assessment and
development of the Plan. All early intervention services shall
be initiated as soon as possible but not later than 30 calendar
days after the consent of the parent or guardian has been
obtained for the individualized family service plan, in
accordance with rules adopted by the lead agency.
(d) Parents must be informed that early intervention
services shall be provided to each eligible infant and

HB3500 - 26 - LRB104 10352 KTG 20426 b
toddler, to the maximum extent appropriate, in the natural
environment, which may include the home or other community
settings. Parents must also be informed of the availability of
early intervention services provided through telehealth
services. Parents shall make the final decision to accept or
decline early intervention services, including whether
accepted services are delivered in person or via telehealth
services. A decision to decline such services shall not be a
basis for administrative determination of parental fitness, or
other findings or sanctions against the parents. Parameters of
the Plan shall be set forth in rules.
(e) The regional intake offices shall explain to each
family, orally and in writing, all of the following:
(1) That the early intervention program will pay for
all early intervention services set forth in the
individualized family service plan that are not covered or
paid under the family's public or private insurance plan
or policy and not eligible for payment through any other
third party payor.
(2) That services will not be delayed due to any rules
or restrictions under the family's insurance plan or
policy.
(3) That the family may request, with appropriate
documentation supporting the request, a determination of
an exemption from private insurance use under Section
10-100.

HB3500 - 27 - LRB104 10352 KTG 20426 b
(4) That responsibility for co-payments or
co-insurance under a family's private insurance plan or
policy will be transferred to the lead agency's central
billing office.
(5) That families will be responsible for payments of
family fees, which will be based on a sliding scale
according to the State's definition of ability to pay
which is comparing household size and income to the
sliding scale and considering out-of-pocket medical or
disaster expenses, and that these fees are payable to the
central billing office. Families who fail to provide
income information shall be charged the maximum amount on
the sliding scale.
(f) The individualized family service plan must state
whether the family has private insurance coverage and, if the
family has such coverage, must have attached to it a copy of
the family's insurance identification card or otherwise
include all of the following information:
(1) The name, address, and telephone number of the
insurance carrier.
(2) The contract number and policy number of the
insurance plan.
(3) The name, address, and social security number of
the primary insured.
(4) The beginning date of the insurance benefit year.
(g) A copy of the individualized family service plan must

HB3500 - 28 - LRB104 10352 KTG 20426 b
be provided to each enrolled provider who is providing early
intervention services to the child who is the subject of that
plan.
(h) Children receiving services under this Act shall
receive a smooth and effective transition by their third
birthday consistent with federal regulations adopted pursuant
to Sections 1431 through 1444 of Title 20 of the United States
Code. Beginning January 1, 2022, children who receive early
intervention services prior to their third birthday and are
found eligible for an individualized education program under
the Individuals with Disabilities Education Act, 20 U.S.C.
1414(d)(1)(A), and under Section 14-8.02 of the School Code
and whose birthday falls between May 1 and August 31 may
continue to receive early intervention services until the
beginning of the school year following their third birthday in
order to minimize gaps in services, ensure better continuity
of care, and align practices for the enrollment of preschool
children with special needs to the enrollment practices of
typically developing preschool children.
(i) The requirement under this subsection is intended to
ensure that families of infants and toddlers with disabilities
are informed about the Illinois Achieving a Better Life
Experience (ABLE) account program, a financial tool that may
assist families in meeting the long-term disability-related
expenses of their children and improving opportunities for
economic independence for their children. During the initial

HB3500 - 29 - LRB104 10352 KTG 20426 b
development of the Individual Family Service Plan and at each
review meeting of the plan, the regional intake offices shall
provide the parent or guardian with informational materials
about the Illinois (ABLE) account program established under
Section 16.6 of the State Treasurer Act. The informational
materials shall include an overview of the program,
eligibility criteria, and other necessary information for
enrollment in the Illinois ABLE program.
The Office of the State Treasurer shall prepare and
deliver the informational materials about the Illinois ABLE
account program to the lead agency, which shall distribute the
materials to regional intake offices. The regional intake
offices shall disseminate the informational materials to
parents and guardians in the same manner as they transmit
other documents to families as part of the Individual Family
Service Plan process. The regional intake offices shall
document the transmission of informational materials about the
Illinois ABLE account program in each child's Individual
Family Service Plan.
(Source: P.A. 103-594, eff. 6-25-24.)
Section 20. The Early Intervention Services System Act is
amended by changing Section 11 as follows:
(325 ILCS 20/11) (from Ch. 23, par. 4161)
(Section scheduled to be repealed on July 1, 2026)

HB3500 - 30 - LRB104 10352 KTG 20426 b
Sec. 11. Individualized Family Service Plans.
(a) Each eligible infant or toddler and that infant's or
toddler's family shall receive:
(1) timely, comprehensive, multidisciplinary
assessment of the unique strengths and needs of each
eligible infant and toddler, and assessment of the
concerns and priorities of the families to appropriately
assist them in meeting their needs and identify supports
and services to meet those needs; and
(2) a written Individualized Family Service Plan
developed by a multidisciplinary team which includes the
parent or guardian. The individualized family service plan
shall be based on the multidisciplinary team's assessment
of the resources, priorities, and concerns of the family
and its identification of the supports and services
necessary to enhance the family's capacity to meet the
developmental needs of the infant or toddler, and shall
include the identification of services appropriate to meet
those needs, including the frequency, intensity, and
method of delivering services. During and as part of the
initial development of the individualized family services
plan, and any periodic reviews of the plan, the
multidisciplinary team may seek consultation from the lead
agency's designated experts, if any, to help determine
appropriate services and the frequency and intensity of
those services. All services in the individualized family

HB3500 - 31 - LRB104 10352 KTG 20426 b
services plan must be justified by the multidisciplinary
assessment of the unique strengths and needs of the infant
or toddler and must be appropriate to meet those needs. At
the periodic reviews, the team shall determine whether
modification or revision of the outcomes or services is
necessary.
(b) The Individualized Family Service Plan shall be
evaluated once a year and the family shall be provided a review
of the Plan at 6-month intervals or more often where
appropriate based on infant or toddler and family needs. The
lead agency shall create a quality review process regarding
Individualized Family Service Plan development and changes
thereto, to monitor and help ensure that resources are being
used to provide appropriate early intervention services.
(c) The initial evaluation and initial assessment and
initial Plan meeting must be held within 45 days after the
initial contact with the early intervention services system.
The 45-day timeline does not apply for any period when the
child or parent is unavailable to complete the initial
evaluation, the initial assessments of the child and family,
or the initial Plan meeting, due to exceptional family
circumstances that are documented in the child's early
intervention records, or when the parent has not provided
consent for the initial evaluation or the initial assessment
of the child despite documented, repeated attempts to obtain
parental consent. As soon as exceptional family circumstances

HB3500 - 32 - LRB104 10352 KTG 20426 b
no longer exist or parental consent has been obtained, the
initial evaluation, the initial assessment, and the initial
Plan meeting must be completed as soon as possible. With
parental consent, early intervention services may commence
before the completion of the comprehensive assessment and
development of the Plan. All early intervention services shall
be initiated as soon as possible but not later than 30 calendar
days after the consent of the parent or guardian has been
obtained for the individualized family service plan, in
accordance with rules adopted by the Department of Human
Services.
(d) Parents must be informed that early intervention
services shall be provided to each eligible infant and
toddler, to the maximum extent appropriate, in the natural
environment, which may include the home or other community
settings. Parents must also be informed of the availability of
early intervention services provided through telehealth
services. Parents shall make the final decision to accept or
decline early intervention services, including whether
accepted services are delivered in person or via telehealth
services. A decision to decline such services shall not be a
basis for administrative determination of parental fitness, or
other findings or sanctions against the parents. Parameters of
the Plan shall be set forth in rules.
(e) The regional intake offices shall explain to each
family, orally and in writing, all of the following:

HB3500 - 33 - LRB104 10352 KTG 20426 b
(1) That the early intervention program will pay for
all early intervention services set forth in the
individualized family service plan that are not covered or
paid under the family's public or private insurance plan
or policy and not eligible for payment through any other
third party payor.
(2) That services will not be delayed due to any rules
or restrictions under the family's insurance plan or
policy.
(3) That the family may request, with appropriate
documentation supporting the request, a determination of
an exemption from private insurance use under Section
13.25.
(4) That responsibility for co-payments or
co-insurance under a family's private insurance plan or
policy will be transferred to the lead agency's central
billing office.
(5) That families will be responsible for payments of
family fees, which will be based on a sliding scale
according to the State's definition of ability to pay
which is comparing household size and income to the
sliding scale and considering out-of-pocket medical or
disaster expenses, and that these fees are payable to the
central billing office. Families who fail to provide
income information shall be charged the maximum amount on
the sliding scale.

HB3500 - 34 - LRB104 10352 KTG 20426 b
(f) The individualized family service plan must state
whether the family has private insurance coverage and, if the
family has such coverage, must have attached to it a copy of
the family's insurance identification card or otherwise
include all of the following information:
(1) The name, address, and telephone number of the
insurance carrier.
(2) The contract number and policy number of the
insurance plan.
(3) The name, address, and social security number of
the primary insured.
(4) The beginning date of the insurance benefit year.
(g) A copy of the individualized family service plan must
be provided to each enrolled provider who is providing early
intervention services to the child who is the subject of that
plan.
(h) Children receiving services under this Act shall
receive a smooth and effective transition by their third
birthday consistent with federal regulations adopted pursuant
to Sections 1431 through 1444 of Title 20 of the United States
Code. Beginning January 1, 2022, children who receive early
intervention services prior to their third birthday and are
found eligible for an individualized education program under
the Individuals with Disabilities Education Act, 20 U.S.C.
1414(d)(1)(A), and under Section 14-8.02 of the School Code
and whose birthday falls between May 1 and August 31 may

HB3500 - 35 - LRB104 10352 KTG 20426 b
continue to receive early intervention services until the
beginning of the school year following their third birthday in
order to minimize gaps in services, ensure better continuity
of care, and align practices for the enrollment of preschool
children with special needs to the enrollment practices of
typically developing preschool children.
(i) The requirement under this subsection is intended to
ensure that families of infants and toddlers with disabilities
are informed about the Illinois Achieving a Better Life
Experience (ABLE) account program, a financial tool that may
assist families in meeting the long-term disability-related
expenses of their children and improving opportunities for
economic independence for their children. During the initial
development of the Individual Family Service Plan and at each
review meeting of the plan, the regional intake offices shall
provide the parent or guardian with informational materials
about the Illinois (ABLE) account program established under
Section 16.6 of the State Treasurer Act. The informational
materials shall include an overview of the program,
eligibility criteria, and other necessary information for
enrollment in the Illinois ABLE program.
The Office of the State Treasurer shall prepare and
deliver the informational materials about the Illinois ABLE
account program to the lead agency, which shall distribute the
materials to regional intake offices. The regional intake
offices shall disseminate the informational materials to

HB3500 - 36 - LRB104 10352 KTG 20426 b
parents and guardians in the same manner as they transmit
other documents to families as part of the Individual Family
Service Plan process. The regional intake offices shall
document the transmission of informational materials about the
Illinois ABLE account program in each child's Individual
Family Service Plan.
(Source: P.A. 101-654, eff. 3-8-21; 102-104, eff. 7-22-21;
102-209, eff. 11-30-21 (See Section 5 of P.A. 102-671 for
effective date of P.A. 102-209); 102-813, eff. 5-13-22;
102-962, eff. 7-1-22.)