Bill Text: IL HB3811 | 2023-2024 | 103rd General Assembly | Engrossed


Bill Title: Amends the State Treasurer Act. Makes a technical change in a provision concerning the short title.

Spectrum: Moderate Partisan Bill (Democrat 6-1)

Status: (Engrossed) 2023-06-26 - Senate Floor Amendment No. 3 Pursuant to Senate Rule 3-9(b) / Referred to Assignments [HB3811 Detail]

Download: Illinois-2023-HB3811-Engrossed.html



HB3811 EngrossedLRB103 31048 DTM 57666 b
1 AN ACT concerning State government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The State Treasurer Act is amended by changing
5Sections 16.5 and 16.6 as follows:
6 (15 ILCS 505/16.5)
7 Sec. 16.5. College Savings Pool.
8 (a) Definitions. As used in this Section:
9 "Account owner" means any person or entity who has opened
10an account or to whom ownership of an account has been
11transferred, as allowed by the Internal Revenue Code, and who
12has authority to withdraw funds, direct withdrawal of funds,
13change the designated beneficiary, or otherwise exercise
14control over an account in the College Savings Pool.
15 "Donor" means any person or entity who makes contributions
16to an account in the College Savings Pool.
17 "Designated beneficiary" means any individual designated
18as the beneficiary of an account in the College Savings Pool by
19an account owner. A designated beneficiary must have a valid
20social security number or taxpayer identification number. In
21the case of an account established as part of a scholarship
22program permitted under Section 529 of the Internal Revenue
23Code, the designated beneficiary is any individual receiving

HB3811 Engrossed- 2 -LRB103 31048 DTM 57666 b
1benefits accumulated in the account as a scholarship.
2 "Eligible educational institution" means public and
3private colleges, junior colleges, graduate schools, and
4certain vocational institutions that are described in Section
51001 of the Higher Education Resource and Student Assistance
6Chapter of Title 20 of the United States Code (20 U.S.C. 1001)
7and that are eligible to participate in Department of
8Education student aid programs.
9 "Member of the family" has the same meaning ascribed to
10that term under Section 529 of the Internal Revenue Code.
11 "Nonqualified withdrawal" means a distribution from an
12account other than a distribution that (i) is used for the
13qualified expenses of the designated beneficiary; (ii) results
14from the beneficiary's death or disability; (iii) is a
15rollover to another account in the College Savings Pool; or
16(iv) is a rollover to an ABLE account, as defined in Section
1716.6 of this Act, or any distribution that, within 60 days
18after such distribution, is transferred to an ABLE account of
19the designated beneficiary or a member of the family of the
20designated beneficiary to the extent that the distribution,
21when added to all other contributions made to the ABLE account
22for the taxable year, does not exceed the limitation under
23Section 529A(b) of the Internal Revenue Code; or (v) is a
24rollover to a Roth IRA account to the extent permitted by
25Section 529 of the Internal Revenue Code.
26 "Qualified expenses" means: (i) tuition, fees, and the

HB3811 Engrossed- 3 -LRB103 31048 DTM 57666 b
1costs of books, supplies, and equipment required for
2enrollment or attendance at an eligible educational
3institution; (ii) expenses for special needs services, in the
4case of a special needs beneficiary, which are incurred in
5connection with such enrollment or attendance; (iii) certain
6expenses, to the extent they qualify as qualified higher
7education expenses under Section 529 of the Internal Revenue
8Code, for the purchase of computer or peripheral equipment or
9Internet access and related services, if such equipment,
10software, or services are to be used primarily by the
11beneficiary during any of the years the beneficiary is
12enrolled at an eligible educational institution, except that,
13such expenses shall not include expenses for computer software
14designed for sports, games, or hobbies, unless the software is
15predominantly educational in nature; (iv) room and board
16expenses incurred while attending an eligible educational
17institution at least half-time; (v) expenses for fees, books,
18supplies, and equipment required for the participation of a
19designated beneficiary in an apprenticeship program registered
20and certified with the Secretary of Labor under the National
21Apprenticeship Act (29 U.S.C. 50); and (vi) amounts paid as
22principal or interest on any qualified education loan of the
23designated beneficiary or a sibling of the designated
24beneficiary, as allowed under Section 529 of the Internal
25Revenue Code. A student shall be considered to be enrolled at
26least half-time if the student is enrolled for at least half

HB3811 Engrossed- 4 -LRB103 31048 DTM 57666 b
1the full-time academic workload for the course of study the
2student is pursuing as determined under the standards of the
3institution at which the student is enrolled.
4 (b) Establishment of the Pool. The State Treasurer may
5establish and administer the College Savings Pool as a
6qualified tuition program under Section 529 of the Internal
7Revenue Code. The Pool may consist of one or more college
8savings programs. The State Treasurer, in administering the
9College Savings Pool, may: (1) receive, hold, and invest
10moneys paid into the Pool; and (2) perform any other action he
11or she deems necessary to administer the Pool, including any
12other actions necessary to ensure that the Pool operates as a
13qualified tuition program in accordance with Section 529 of
14the Internal Revenue Code.
15 (c) Administration of the College Savings Pool. The State
16Treasurer may delegate duties related to the College Savings
17Pool to one or more contractors. The contributions deposited
18in the Pool, and any earnings thereon, shall not constitute
19property of the State or be commingled with State funds and the
20State shall have no claim to or against, or interest in, such
21funds; provided that the fees collected by the State Treasurer
22in accordance with this Act, scholarship programs administered
23by the State Treasurer, and seed funds deposited by the State
24Treasurer under Section 16.8 of the Act are State funds.
25 (c-5) College Savings Pool Account Summaries. The State
26Treasurer shall provide a separate accounting for each

HB3811 Engrossed- 5 -LRB103 31048 DTM 57666 b
1designated beneficiary. The separate accounting shall be
2provided to the account owner of the account for the
3designated beneficiary at least annually and shall show the
4account balance, the investment in the account, the investment
5earnings, and the distributions from the account.
6 (d) Availability of the College Savings Pool. The State
7Treasurer may permit persons, including trustees of trusts and
8custodians under a Uniform Transfers to Minors Act or Uniform
9Gifts to Minors Act account, and certain legal entities to be
10account owners, including as part of a scholarship program,
11provided that: (1) an individual, trustee or custodian must
12have a valid social security number or taxpayer identification
13number, be at least 18 years of age, and have a valid United
14States street address; and (2) a legal entity must have a valid
15taxpayer identification number and a valid United States
16street address. In-state and out-of-state persons, trustees,
17custodians, and legal entities may be account owners and
18donors, and both in-state and out-of-state individuals may be
19designated beneficiaries in the College Savings Pool.
20 (e) Fees. Any fees, costs, and expenses, including
21investment fees and expenses and payments to third parties,
22related to the College Savings Pool, shall be paid from the
23assets of the College Savings Pool. The State Treasurer shall
24establish fees to be imposed on accounts to cover such fees,
25costs, and expenses, to the extent not paid directly out of the
26investments of the College Savings Pool, and to maintain an

HB3811 Engrossed- 6 -LRB103 31048 DTM 57666 b
1adequate reserve fund in line with industry standards for
2government operated funds. The Treasurer must use his or her
3best efforts to keep these fees as low as possible and
4consistent with administration of high quality competitive
5college savings programs.
6 (f) Investments in the State. To enhance the safety and
7liquidity of the College Savings Pool, to ensure the
8diversification of the investment portfolio of the College
9Savings Pool, and in an effort to keep investment dollars in
10the State of Illinois, the State Treasurer may make a
11percentage of each account available for investment in
12participating financial institutions doing business in the
13State.
14 (g) Investment policy. The Treasurer shall develop,
15publish, and implement an investment policy covering the
16investment of the moneys in each of the programs in the College
17Savings Pool. The policy shall be published each year as part
18of the audit of the College Savings Pool by the Auditor
19General, which shall be distributed to all account owners in
20such program. The Treasurer shall notify all account owners in
21such program in writing, and the Treasurer shall publish in a
22newspaper of general circulation in both Chicago and
23Springfield, any changes to the previously published
24investment policy at least 30 calendar days before
25implementing the policy. Any investment policy adopted by the
26Treasurer shall be reviewed and updated if necessary within 90

HB3811 Engrossed- 7 -LRB103 31048 DTM 57666 b
1days following the date that the State Treasurer takes office.
2 (h) Investment restrictions. An account owner may,
3directly or indirectly, direct the investment of his or her
4account only as provided in Section 529(b)(4) of the Internal
5Revenue Code. Donors and designated beneficiaries, in those
6capacities, may not, directly or indirectly, direct the
7investment of an account.
8 (i) Distributions. Distributions from an account in the
9College Savings Pool may be used for the designated
10beneficiary's qualified expenses, and if not used in that
11manner, may be considered a nonqualified withdrawal. Funds
12contained in a College Savings Pool account may be rolled over
13into:
14 (1) an eligible ABLE account, as defined in Section
15 16.6 of this Act to the extent permitted by Section 529 of
16 the Internal Revenue Code; , or
17 (2) another qualified tuition program, to the extent
18 permitted by Section 529 of the Internal Revenue Code; or
19 (3) a Roth IRA account, to the extent permitted by
20 Section 529 of the Internal Revenue Code.
21 Distributions made from the College Savings Pool may be
22made directly to the eligible educational institution,
23directly to a vendor, in the form of a check payable to both
24the designated beneficiary and the institution or vendor,
25directly to the designated beneficiary or account owner, or in
26any other manner that is permissible under Section 529 of the

HB3811 Engrossed- 8 -LRB103 31048 DTM 57666 b
1Internal Revenue Code.
2 (j) Contributions. Contributions to the College Savings
3Pool shall be as follows:
4 (1) Contributions to an account in the College Savings
5 Pool may be made only in cash.
6 (2) The Treasurer shall limit the contributions that
7 may be made to the College Savings Pool on behalf of a
8 designated beneficiary, as required under Section 529 of
9 the Internal Revenue Code, to prevent contributions for
10 the benefit of a designated beneficiary in excess of those
11 necessary to provide for the qualified expenses of the
12 designated beneficiary. The Pool shall not permit any
13 additional contributions to an account as soon as the sum
14 of (i) the aggregate balance in all accounts in the Pool
15 for the designated beneficiary and (ii) the aggregate
16 contributions in the Illinois Prepaid Tuition Program for
17 the designated beneficiary reaches the specified balance
18 limit established from time to time by the Treasurer.
19 (k) Illinois Student Assistance Commission. The Treasurer
20and the Illinois Student Assistance Commission shall each
21cooperate in providing each other with account information, as
22necessary, to prevent contributions in excess of those
23necessary to provide for the qualified expenses of the
24designated beneficiary, as described in subsection (j).
25 The Treasurer shall work with the Illinois Student
26Assistance Commission to coordinate the marketing of the

HB3811 Engrossed- 9 -LRB103 31048 DTM 57666 b
1College Savings Pool and the Illinois Prepaid Tuition Program
2when considered beneficial by the Treasurer and the Director
3of the Illinois Student Assistance Commission.
4 (l) Prohibition; exemption. No interest in the program, or
5any portion thereof, may be used as security for a loan. Moneys
6held in an account invested in the College Savings Pool shall
7be exempt from all claims of the creditors of the account
8owner, donor, or designated beneficiary of that account,
9except for the non-exempt College Savings Pool transfers to or
10from the account as defined under subsection (j) of Section
1112-1001 of the Code of Civil Procedure.
12 (m) Taxation. The assets of the College Savings Pool and
13its income and operation shall be exempt from all taxation by
14the State of Illinois and any of its subdivisions. The accrued
15earnings on investments in the Pool once disbursed on behalf
16of a designated beneficiary shall be similarly exempt from all
17taxation by the State of Illinois and its subdivisions, so
18long as they are used for qualified expenses. Contributions to
19a College Savings Pool account during the taxable year may be
20deducted from adjusted gross income as provided in Section 203
21of the Illinois Income Tax Act. The provisions of this
22paragraph are exempt from Section 250 of the Illinois Income
23Tax Act.
24 (n) Rules. The Treasurer shall adopt rules he or she
25considers necessary for the efficient administration of the
26College Savings Pool. The rules shall provide whatever

HB3811 Engrossed- 10 -LRB103 31048 DTM 57666 b
1additional parameters and restrictions are necessary to ensure
2that the College Savings Pool meets all the requirements for a
3qualified tuition program under Section 529 of the Internal
4Revenue Code.
5 Notice of any proposed amendments to the rules and
6regulations shall be provided to all account owners prior to
7adoption.
8 (o) Bond. The State Treasurer shall give bond with at
9least one surety, payable to and for the benefit of the account
10owners in the College Savings Pool, in the penal sum of
11$10,000,000, conditioned upon the faithful discharge of his or
12her duties in relation to the College Savings Pool.
13 (p) The changes made to subsections (c) and (e) of this
14Section by Public Act 101-26 are intended to be a restatement
15and clarification of existing law.
16(Source: P.A. 101-26, eff. 6-21-19; 101-81, eff. 7-12-19;
17102-186, eff. 7-30-21.)
18 (15 ILCS 505/16.6)
19 Sec. 16.6. ABLE account program.
20 (a) As used in this Section:
21 "ABLE account" or "account" means an account established
22for the purpose of financing certain qualified expenses of
23eligible individuals as specifically provided for in this
24Section and authorized by Section 529A of the Internal Revenue
25Code.

HB3811 Engrossed- 11 -LRB103 31048 DTM 57666 b
1 "ABLE account plan" or "plan" means the savings account
2plan provided for in this Section.
3 "Account administrator" means the person or entity
4selected by the State Treasurer to administer the daily
5operations of the ABLE account plan and provide marketing,
6recordkeeping, investment management, and other services for
7the plan.
8 "Aggregate account balance" means the amount in an account
9on a particular date or the fair market value of an account on
10a particular date.
11 "Beneficiary" or "designated beneficiary" means the ABLE
12account owner.
13 "Contracting state" means a state without a qualified ABLE
14program which has entered into a contract with Illinois to
15provide residents of the contracting state access to a
16qualified ABLE program.
17 "Designated representative" means a person or entity who
18is authorized to act on behalf of a "designated beneficiary".
19A designated beneficiary is authorized to act on his or her own
20behalf unless the designated beneficiary is a minor or the
21designated beneficiary has been adjudicated to have a
22disability so that a guardian has been appointed. A designated
23representative acts in a fiduciary capacity to the designated
24beneficiary. A person or entity seeking to open an ABLE
25account on behalf of a designated beneficiary must provide
26certification, subject to penalties of perjury, of the basis

HB3811 Engrossed- 12 -LRB103 31048 DTM 57666 b
1for the person's or entity's authority to act as a designated
2representative and that there is no other person or entity
3with higher priority to establish the ABLE account under
4Section 529A of the Internal Revenue Code and federal
5regulations.
6 "Disability certification" has the meaning given to that
7term under Section 529A of the Internal Revenue Code.
8 "Eligible individual" has the meaning given to that term
9under Section 529A of the Internal Revenue Code.
10 "Internal Revenue Code" means the federal Internal Revenue
11Code.
12 "Participation agreement" means an agreement to
13participate in the ABLE account plan between a designated
14beneficiary and the State, through its agencies and the State
15Treasurer.
16 "Qualified disability expenses" has the meaning given to
17that term under Section 529A of the Internal Revenue Code.
18 "Qualified withdrawal" or "qualified distribution" means a
19withdrawal from an ABLE account to pay the qualified
20disability expenses of the beneficiary of the account.
21 (b) Establishment of the ABLE Program. The "Achieving a
22Better Life Experience" or "ABLE" account program is hereby
23created and shall be administered by the State Treasurer. The
24purpose of the ABLE program is to encourage and assist
25individuals and families in saving private funds for the
26purpose of supporting individuals with disabilities to

HB3811 Engrossed- 13 -LRB103 31048 DTM 57666 b
1maintain health, independence, and quality of life, and to
2provide secure funding for disability-related expenses on
3behalf of designated beneficiaries with disabilities that will
4supplement, but not supplant, benefits provided through
5private insurance, federal and State medical and disability
6insurance, the beneficiary's employment, and other sources.
7Under the plan, a person or entity may make contributions to an
8ABLE account to meet the qualified disability expenses of the
9designated beneficiary of the account. The plan must be
10operated as an accounts-type plan that permits saving persons
11to save for qualified disability expenses incurred by or on
12behalf of an eligible individual.
13 (c) Promotion of the ABLE Program. The State Treasurer
14shall promote awareness of the availability and advantages of
15the ABLE account plan as a way to assist individuals and
16families in saving private funds for the purpose of supporting
17individuals with disabilities.
18 (d) Availability of the ABLE Program. An ABLE account may
19be established under this Section for a designated beneficiary
20who is a resident of Illinois, a resident of a contracting
21state, or a resident of any other state.
22 Annual contributions to an ABLE account on behalf of a
23beneficiary are subject to the requirements of subsection (b)
24of Section 529A of the Internal Revenue Code. No person or
25entity may make a contribution to an ABLE account if such a
26contribution would result in the aggregate account balance of

HB3811 Engrossed- 14 -LRB103 31048 DTM 57666 b
1an ABLE account exceeding the account balance limit authorized
2under Section 529A of the Internal Revenue Code. The Treasurer
3shall review the contribution limit at least annually. A
4separate account must be maintained for each beneficiary for
5whom contributions are made, and no more than one account
6shall be established per beneficiary. If an ABLE account is
7established for a designated beneficiary, no account
8subsequently established for such beneficiary shall be treated
9as an ABLE account. The preceding sentence shall not apply in
10the case of an ABLE account established for purposes of a
11rollover as permitted under Sections 529 and 529A of the
12Internal Revenue Code.
13 (e) Administration of the ABLE Program. The State
14Treasurer shall administer the plan, including accepting and
15processing applications, maintaining account records, making
16payments, and undertaking any other necessary tasks to
17administer the plan, including the appointment of an account
18administrator. The State Treasurer may contract with one or
19more third parties to carry out some or all of these
20administrative duties, including, but not limited to,
21providing investment management services, incentives, and
22marketing the plan. The State Treasurer may enter into
23agreements with other states to either allow Illinois
24residents to participate in a plan operated by another state
25or to allow residents of other states to participate in the
26Illinois ABLE plan. The State Treasurer may require any

HB3811 Engrossed- 15 -LRB103 31048 DTM 57666 b
1certifications that he or she deems necessary to implement the
2program, including oaths or affirmations made under penalties
3of perjury.
4 (f) Fees. The State Treasurer may establish fees to be
5imposed on participants to cover the costs of administration,
6recordkeeping, and investment management. The State Treasurer
7must use his or her best efforts to keep these fees as low as
8possible, consistent with efficient administration.
9 (g) The Illinois ABLE Accounts Administrative Fund. The
10Illinois ABLE Accounts Administrative Fund is created as a
11nonappropriated trust fund in the State treasury. The State
12Treasurer shall use moneys in the Administrative Fund to cover
13administrative expenses incurred under this Section. The
14Administrative Fund may receive any grants or other moneys
15designated for administrative purposes from the State, or any
16unit of federal, state, or local government, or any other
17person, firm, partnership, or corporation. Any interest
18earnings that are attributable to moneys in the Administrative
19Fund must be deposited into the Administrative Fund. Any fees
20established by the State Treasurer to cover the costs of
21administration, recordkeeping, and investment management shall
22be deposited into the Administrative Fund.
23 Subject to appropriation, the State Treasurer may pay
24administrative costs associated with the creation and
25management of the plan until sufficient assets are available
26in the Administrative Fund for that purpose.

HB3811 Engrossed- 16 -LRB103 31048 DTM 57666 b
1 (h) Privacy. Applications for accounts and other records
2obtained or compiled by the Treasurer or the Treasurer's
3agents reflecting , designated beneficiary information data,
4account information data, or designated representative
5information and data on beneficiaries of accounts are
6confidential and exempt from disclosure under the Freedom of
7Information Act.
8 (i) Investment Policy. The Treasurer shall prepare and
9adopt a written statement of investment policy that includes a
10risk management and oversight program which shall be reviewed
11annually and posted on the Treasurer's website prior to
12implementation. The risk management and oversight program
13shall be designed to ensure that an effective risk management
14system is in place to monitor the risk levels of the ABLE plan,
15to ensure that the risks taken are prudent and properly
16managed, to provide an integrated process for overall risk
17management, and to assess investment returns as well as risk
18to determine if the risks taken are adequately compensated
19compared to applicable performance benchmarks and standards.
20To enhance the safety and liquidity of ABLE accounts, to
21ensure the diversification of the investment portfolio of
22accounts, and in an effort to keep investment dollars in the
23State, the State Treasurer may make a percentage of each
24account available for investment in participating financial
25institutions doing business in the State, except that the
26accounts may be invested without limit in investment options

HB3811 Engrossed- 17 -LRB103 31048 DTM 57666 b
1from open-ended investment companies registered under Section
280a of the federal Investment Company Act of 1940. The State
3Treasurer may contract with one or more third parties for
4investment management, recordkeeping, or other services in
5connection with investing the accounts.
6 (j) Investment restrictions. The State Treasurer shall
7ensure that the plan meets the requirements for an ABLE
8account under Section 529A of the Internal Revenue Code. The
9State Treasurer may request a private letter ruling or rulings
10from the Internal Revenue Service and must take any necessary
11steps to ensure that the plan qualifies under relevant
12provisions of federal law. Notwithstanding the foregoing, any
13determination by the Secretary of the Treasury of the United
14States that an account was utilized to make non-qualified
15distributions shall not result in an ABLE account being
16disregarded as a resource.
17 (k) Contributions. A person or entity may make
18contributions to an ABLE account on behalf of a beneficiary.
19Contributions to an account made by persons or entities other
20than the designated beneficiary become the property of the
21designated beneficiary. Contributions to an account shall be
22considered as a transfer of assets for fair market value. A
23person or entity does not acquire an interest in an ABLE
24account by making contributions to an account. A contribution
25to any account for a beneficiary must be rejected if the
26contribution would cause either the aggregate or annual

HB3811 Engrossed- 18 -LRB103 31048 DTM 57666 b
1account balance of the account to exceed the limits imposed by
2Section 529A of the Internal Revenue Code.
3 Any change in designated beneficiary must be done in a
4manner consistent with Section 529A of the Internal Revenue
5Code.
6 (l) Notice. Notice of any proposed amendments to the rules
7and regulations shall be provided to all designated
8beneficiaries or their designated representatives prior to
9adoption. Amendments to rules and regulations shall apply only
10to contributions made after the adoption of the amendment.
11Amendments to this Section automatically amend the
12participation agreement. Any amendments to the operating
13procedures and policies of the plan shall automatically amend
14the participation agreement after adoption by the State
15Treasurer.
16 (m) Plan assets. All assets of the plan, including any
17contributions to accounts, are held in trust for the exclusive
18benefit of the designated beneficiary and shall be considered
19spendthrift accounts exempt from all of the designated
20beneficiary's creditors. The plan shall provide separate
21accounting for each designated beneficiary sufficient to
22satisfy the requirements of paragraph (3) of subsection (b) of
23Section 529A of the Internal Revenue Code. Assets must be held
24in either a state trust fund outside the State treasury, to be
25known as the Illinois ABLE plan trust fund, or in accounts with
26a third-party provider selected pursuant to this Section.

HB3811 Engrossed- 19 -LRB103 31048 DTM 57666 b
1Amounts contributed to ABLE accounts shall not be commingled
2with State funds and the State shall have no claim to or
3against, or interest in, such funds.
4 Plan assets are not subject to claims by creditors of the
5State and are not subject to appropriation by the State.
6Payments from the Illinois ABLE account plan shall be made
7under this Section.
8 The assets of ABLE accounts and their income may not be
9used as security for a loan.
10 (n) Taxation. The assets of ABLE accounts and their income
11and operation shall be exempt from all taxation by the State of
12Illinois and any of its subdivisions to the extent exempt from
13federal income taxation. The accrued earnings on investments
14in an ABLE account once disbursed on behalf of a designated
15beneficiary shall be similarly exempt from all taxation by the
16State of Illinois and its subdivisions to the extent exempt
17from federal income taxation, so long as they are used for
18qualified expenses.
19 Notwithstanding any other provision of law that requires
20consideration of one or more financial circumstances of an
21individual, for the purpose of determining eligibility to
22receive, or the amount of, any assistance or benefit
23authorized by such provision to be provided to or for the
24benefit of such individual, any amount, including earnings
25thereon, in the ABLE account of such individual, any
26contributions to the ABLE account of the individual, and any

HB3811 Engrossed- 20 -LRB103 31048 DTM 57666 b
1distribution for qualified disability expenses shall be
2disregarded for such purpose with respect to any period during
3which such individual maintains, makes contributions to, or
4receives distributions from such ABLE account.
5 (o) Distributions. The designated beneficiary or the
6designated representative of the designated beneficiary may
7make a qualified distribution for the benefit of the
8designated beneficiary. Qualified distributions shall be made
9for qualified disability expenses allowed pursuant to Section
10529A of the Internal Revenue Code. Qualified distributions
11must be withdrawn proportionally from contributions and
12earnings in a designated beneficiary's account on the date of
13distribution as provided in Section 529A of the Internal
14Revenue Code. Unless prohibited by federal law, upon the death
15of a designated beneficiary, proceeds from an account may be
16transferred to the estate of a designated beneficiary, or to
17an account for another eligible individual specified by the
18designated beneficiary or the estate of the designated
19beneficiary, or transferred pursuant to a payable on death
20account agreement. A payable on death account agreement may be
21executed by the designated beneficiary or a designated
22representative who has been granted such power. Upon the death
23of a designated beneficiary, prior to distribution of the
24balance to the estate, account for another eligible
25individual, or transfer pursuant to a payable on death account
26agreement, the State Treasurer may require verification that

HB3811 Engrossed- 21 -LRB103 31048 DTM 57666 b
1the funeral and burial expenses of the designated beneficiary
2have been paid. An agency or instrumentality of the State may
3not seek payment under subsection (f) of Section 529A of the
4federal Internal Revenue Code from the account or its proceeds
5for benefits provided to a designated beneficiary.
6 (p) Rules. The State Treasurer may adopt rules to carry
7out the purposes of this Section. The State Treasurer shall
8further have the power to issue peremptory rules necessary to
9ensure that ABLE accounts meet all of the requirements for a
10qualified state ABLE program under Section 529A of the
11Internal Revenue Code and any regulations issued by the
12Internal Revenue Service.
13 (q) Name. The ABLE Account Program may also be referred to
14as the Senator Scott Bennett ABLE Program.
15(Source: P.A. 101-329, eff. 8-9-19; 102-392, eff. 8-16-21;
16102-1024, eff. 5-27-22.)
feedback