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California Assembly Bill AB339

California 2023-2024 Regular Session

California Assembly Bill AB339 Compare Versions

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1-Assembly Bill No. 339 CHAPTER 324 An act to amend Sections 17140.4 and 23711.4 of the Revenue and Taxation Code and to amend, repeal, and add Section 4875 of the Welfare and Institutions Code, relating to Qualified ABLE Program. [ Approved by Governor October 07, 2023. Filed with Secretary of State October 07, 2023. ] LEGISLATIVE COUNSEL'S DIGESTAB 339, Irwin. Qualified ABLE Program: age limit.Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting eligible individuals with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified. Under the ABLE Act, pursuant to the Consolidated Appropriations Act, 2023, an eligible individual for a taxable year is an individual entitled to specified benefits based on blindness or disability or for whom there is a disability certification filed with the Secretary of the Treasury, and such blindness or disability occurred before the date on which the individual attained 26 years of age, or, on and after January 1, 2026, 46 years of age.Existing law establishes the Qualified ABLE Program, administered by the California ABLE Act Board, in this state for purposes of implementing the federal ABLE Act, and provides the same definition for eligible individual.Existing law, the Personal Income Tax Law and the Corporation Tax Law, for taxable years beginning on or after January 1, 2016, conforms to the exclusions from gross income provided under federal income tax law provisions relating to the ABLE Act, as those exclusions read in specified federal law prior to the Consolidated Appropriations Act, 2023.This bill would, commencing January 1, 2026, revise the definition of eligible individual under the Qualified ABLE Program by increasing the age limit for when an eligible individuals blindness or disability occurred to 46 years of age to conform with federal ABLE Act.This bill would also conform, for taxable years beginning on or after January 1, 2026, state tax law to those changes relating to qualified ABLE programs made by the Consolidated Appropriations Act, 2023.Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.This bill would make specified findings complying with this requirement for the above-described tax expenditure. The bill would require the Treasurers office to submit, no later than January 1, 2030, a report to the Legislature, detailing the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17140.4 of the Revenue and Taxation Code is amended to read:17140.4. For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a) Section 529A(a) of the Internal Revenue Code is modified as follows:(1) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(d) (1) The amendments made by Section 303(a) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529A(b)(1) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) The amendments made by Section 303(b) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(3) and 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs shall apply, except as otherwise provided.(3) The amendments made by Section 303(c) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(4) and 529A(c)(1)(C)(i) of the Internal Revenue Code, relating to qualified ABLE program, shall apply, except as otherwise provided.(e) The amendments made by Section 11024(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 529A(b)(2)(B) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(f) (1) For taxable years beginning on or after January 1, 2026, the amendments made by Section 124 of the Consolidated Appropriations Act, 2023 (Public Law 117-328) to Section 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) (A) For the purpose of complying with Section 41, as it relates to the tax expenditures established by this subdivision and subdivision (f) of Section 23711.4 (hereafter the tax expenditures,) the Legislature finds and declares as follows:(i) The goal, purpose, and objective of the tax expenditures are to encourage and assist individuals and families to save private funds for purposes of supporting persons with disabilities to maintain their health, independent, and quality of life.(ii) The performance indicators for the Legislature to use in determining whether the tax expenditures are achieving their stated goal shall be the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.(B) No later than January 1, 2030, the Treasurers office shall submit a report to the Legislature, in compliance with Section 9795 of the Government Code, detailing the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.SEC. 2. Section 23711.4 of the Revenue and Taxation Code is amended to read:23711.4. For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a) Section 529A(a) of the Internal Revenue Code is modified as follows:(1) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(d) (1) The amendments made by Section 303(a) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529A(b)(1) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) The amendments made by Section 303(b) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(3) and 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(3) The amendments made by Section 303(c) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(4) and 529A(c)(1)(C)(i) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(e) The amendments made by Section 11024(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 529A(b)(2)(B) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(f) (1) For taxable years beginning on or after January 1, 2026, the amendments made by Section 124 of the Consolidated Appropriations Act, 2023 (Public Law 117-328) to Section 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) For purposes of complying with Section 41, the goal, purpose, objective, performance indicators, and data collection requirements for the tax expenditure allowed by this subdivision shall be as specified in subdivision (f) of Section 17140.4.SEC. 3. Section 4875 of the Welfare and Institutions Code is amended to read:4875. For purposes of this chapter:(a) ABLE account or account means the account established for and owned by a designated beneficiary pursuant to this chapter for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account.(b) Administrative fund means the fund used to administer this chapter.(c) Board means the California ABLE Act Board established under this chapter.(d) California ABLE Program Trust or ABLE program trust means the trust created pursuant to this chapter.(e) CalABLE account means an ABLE account that is established within the program established by this chapter and administered by the board.(f) Designated beneficiary means the eligible individual for whom the ABLE account was established and who is the owner of the account.(g) Eligible individual means an individual who is eligible under the program for a taxable year if blindness or disability occurred before the date on which the individual attained 26 years of age, and during that taxable year either of the following criteria are satisfied:(1) The individual is entitled to benefits based on blindness or disability under Title II or XVI of the federal Social Security Act, and that blindness or disability occurred before the date on which the individual attained 26 years of age.(2) A disability certification, as defined in the federal ABLE Act, with respect to the individual is filed pursuant to the requirements set forth in the federal ABLE Act.(h) Federal ABLE Act means the federal Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (as codified in Section 529A of Title 26 of the United States Code and amended through Public Law 115-141).(i) Investment management means the functions performed by a manager contracted to perform functions delegated by the board.(j) Investment manager means a manager contracted to perform functions delegated by the board.(k) Program fund means the program fund established by this chapter, which shall be held as a separate fund within the California ABLE Program Trust.(l) Qualified ABLE Program or program means the program established by this chapter to implement the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code.(m) Qualified disability expenses means any expenses related to the eligible individuals blindness or disability that are made for the benefit of an eligible individual who is the designated beneficiary, including the following expenses: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses, which are approved by the Secretary of the Treasury under regulations and consistent with the purposes of the federal ABLE Act.(n) This section shall remain in effect only until January 1, 2026, and as of that date is repealed.SEC. 4. Section 4875 is added to the Welfare and Institutions Code, to read:4875. For purposes of this chapter:(a) ABLE account or account means the account established for and owned by a designated beneficiary pursuant to this chapter for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account.(b) Administrative fund means the fund used to administer this chapter.(c) Board means the California ABLE Act Board established under this chapter.(d) California ABLE Program Trust or ABLE program trust means the trust created pursuant to this chapter.(e) CalABLE account means an ABLE account that is established within the program established by this chapter and administered by the board.(f) Designated beneficiary means the eligible individual for whom the ABLE account was established and who is the owner of the account.(g) Eligible individual means an individual who is eligible under the program for a taxable year if blindness or disability occurred before the date on which the individual attained 46 years of age, and during that taxable year either of the following criteria are satisfied:(1) The individual is entitled to benefits based on blindness or disability under Title II or XVI of the federal Social Security Act, and that blindness or disability occurred before the date on which the individual attained 46 years of age.(2) A disability certification, as defined in the federal ABLE Act, with respect to the individual is filed pursuant to the requirements set forth in the federal ABLE Act.(h) Federal ABLE Act means the federal Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (as codified in Section 529A of Title 26 of the United States Code and amended through Public Law 117-328).(i) Investment management means the functions performed by a manager contracted to perform functions delegated by the board.(j) Investment manager means a manager contracted to perform functions delegated by the board.(k) Program fund means the program fund established by this chapter, which shall be held as a separate fund within the California ABLE Program Trust.(l) Qualified ABLE Program or program means the program established by this chapter to implement the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code.(m) Qualified disability expenses means any expenses related to the eligible individuals blindness or disability that are made for the benefit of an eligible individual who is the designated beneficiary, including the following expenses: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses, which are approved by the Secretary of the Treasury under regulations and consistent with the purposes of the federal ABLE Act.(n) This section shall become operative on January 1, 2026.
1+Enrolled September 14, 2023 Passed IN Senate September 12, 2023 Passed IN Assembly May 25, 2023 Amended IN Assembly March 14, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 339Introduced by Assembly Member IrwinJanuary 30, 2023 An act to amend Sections 17140.4 and 23711.4 of the Revenue and Taxation Code and to amend, repeal, and add Section 4875 of the Welfare and Institutions Code, relating to Qualified ABLE Program. LEGISLATIVE COUNSEL'S DIGESTAB 339, Irwin. Qualified ABLE Program: age limit.Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting eligible individuals with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified. Under the ABLE Act, pursuant to the Consolidated Appropriations Act, 2023, an eligible individual for a taxable year is an individual entitled to specified benefits based on blindness or disability or for whom there is a disability certification filed with the Secretary of the Treasury, and such blindness or disability occurred before the date on which the individual attained 26 years of age, or, on and after January 1, 2026, 46 years of age.Existing law establishes the Qualified ABLE Program, administered by the California ABLE Act Board, in this state for purposes of implementing the federal ABLE Act, and provides the same definition for eligible individual.Existing law, the Personal Income Tax Law and the Corporation Tax Law, for taxable years beginning on or after January 1, 2016, conforms to the exclusions from gross income provided under federal income tax law provisions relating to the ABLE Act, as those exclusions read in specified federal law prior to the Consolidated Appropriations Act, 2023.This bill would, commencing January 1, 2026, revise the definition of eligible individual under the Qualified ABLE Program by increasing the age limit for when an eligible individuals blindness or disability occurred to 46 years of age to conform with federal ABLE Act.This bill would also conform, for taxable years beginning on or after January 1, 2026, state tax law to those changes relating to qualified ABLE programs made by the Consolidated Appropriations Act, 2023.Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.This bill would make specified findings complying with this requirement for the above-described tax expenditure. The bill would require the Treasurers office to submit, no later than January 1, 2030, a report to the Legislature, detailing the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17140.4 of the Revenue and Taxation Code is amended to read:17140.4. For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a) Section 529A(a) of the Internal Revenue Code is modified as follows:(1) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(d) (1) The amendments made by Section 303(a) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529A(b)(1) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) The amendments made by Section 303(b) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(3) and 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs shall apply, except as otherwise provided.(3) The amendments made by Section 303(c) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(4) and 529A(c)(1)(C)(i) of the Internal Revenue Code, relating to qualified ABLE program, shall apply, except as otherwise provided.(e) The amendments made by Section 11024(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 529A(b)(2)(B) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(f) (1) For taxable years beginning on or after January 1, 2026, the amendments made by Section 124 of the Consolidated Appropriations Act, 2023 (Public Law 117-328) to Section 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) (A) For the purpose of complying with Section 41, as it relates to the tax expenditures established by this subdivision and subdivision (f) of Section 23711.4 (hereafter the tax expenditures,) the Legislature finds and declares as follows:(i) The goal, purpose, and objective of the tax expenditures are to encourage and assist individuals and families to save private funds for purposes of supporting persons with disabilities to maintain their health, independent, and quality of life.(ii) The performance indicators for the Legislature to use in determining whether the tax expenditures are achieving their stated goal shall be the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.(B) No later than January 1, 2030, the Treasurers office shall submit a report to the Legislature, in compliance with Section 9795 of the Government Code, detailing the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.SEC. 2. Section 23711.4 of the Revenue and Taxation Code is amended to read:23711.4. For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a) Section 529A(a) of the Internal Revenue Code is modified as follows:(1) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(d) (1) The amendments made by Section 303(a) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529A(b)(1) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) The amendments made by Section 303(b) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(3) and 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(3) The amendments made by Section 303(c) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(4) and 529A(c)(1)(C)(i) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(e) The amendments made by Section 11024(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 529A(b)(2)(B) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(f) (1) For taxable years beginning on or after January 1, 2026, the amendments made by Section 124 of the Consolidated Appropriations Act, 2023 (Public Law 117-328) to Section 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) For purposes of complying with Section 41, the goal, purpose, objective, performance indicators, and data collection requirements for the tax expenditure allowed by this subdivision shall be as specified in subdivision (f) of Section 17140.4.SEC. 3. Section 4875 of the Welfare and Institutions Code is amended to read:4875. For purposes of this chapter:(a) ABLE account or account means the account established for and owned by a designated beneficiary pursuant to this chapter for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account.(b) Administrative fund means the fund used to administer this chapter.(c) Board means the California ABLE Act Board established under this chapter.(d) California ABLE Program Trust or ABLE program trust means the trust created pursuant to this chapter.(e) CalABLE account means an ABLE account that is established within the program established by this chapter and administered by the board.(f) Designated beneficiary means the eligible individual for whom the ABLE account was established and who is the owner of the account.(g) Eligible individual means an individual who is eligible under the program for a taxable year if blindness or disability occurred before the date on which the individual attained 26 years of age, and during that taxable year either of the following criteria are satisfied:(1) The individual is entitled to benefits based on blindness or disability under Title II or XVI of the federal Social Security Act, and that blindness or disability occurred before the date on which the individual attained 26 years of age.(2) A disability certification, as defined in the federal ABLE Act, with respect to the individual is filed pursuant to the requirements set forth in the federal ABLE Act.(h) Federal ABLE Act means the federal Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (as codified in Section 529A of Title 26 of the United States Code and amended through Public Law 115-141).(i) Investment management means the functions performed by a manager contracted to perform functions delegated by the board.(j) Investment manager means a manager contracted to perform functions delegated by the board.(k) Program fund means the program fund established by this chapter, which shall be held as a separate fund within the California ABLE Program Trust.(l) Qualified ABLE Program or program means the program established by this chapter to implement the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code.(m) Qualified disability expenses means any expenses related to the eligible individuals blindness or disability that are made for the benefit of an eligible individual who is the designated beneficiary, including the following expenses: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses, which are approved by the Secretary of the Treasury under regulations and consistent with the purposes of the federal ABLE Act.(n) This section shall remain in effect only until January 1, 2026, and as of that date is repealed.SEC. 4. Section 4875 is added to the Welfare and Institutions Code, to read:4875. For purposes of this chapter:(a) ABLE account or account means the account established for and owned by a designated beneficiary pursuant to this chapter for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account.(b) Administrative fund means the fund used to administer this chapter.(c) Board means the California ABLE Act Board established under this chapter.(d) California ABLE Program Trust or ABLE program trust means the trust created pursuant to this chapter.(e) CalABLE account means an ABLE account that is established within the program established by this chapter and administered by the board.(f) Designated beneficiary means the eligible individual for whom the ABLE account was established and who is the owner of the account.(g) Eligible individual means an individual who is eligible under the program for a taxable year if blindness or disability occurred before the date on which the individual attained 46 years of age, and during that taxable year either of the following criteria are satisfied:(1) The individual is entitled to benefits based on blindness or disability under Title II or XVI of the federal Social Security Act, and that blindness or disability occurred before the date on which the individual attained 46 years of age.(2) A disability certification, as defined in the federal ABLE Act, with respect to the individual is filed pursuant to the requirements set forth in the federal ABLE Act.(h) Federal ABLE Act means the federal Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (as codified in Section 529A of Title 26 of the United States Code and amended through Public Law 117-328).(i) Investment management means the functions performed by a manager contracted to perform functions delegated by the board.(j) Investment manager means a manager contracted to perform functions delegated by the board.(k) Program fund means the program fund established by this chapter, which shall be held as a separate fund within the California ABLE Program Trust.(l) Qualified ABLE Program or program means the program established by this chapter to implement the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code.(m) Qualified disability expenses means any expenses related to the eligible individuals blindness or disability that are made for the benefit of an eligible individual who is the designated beneficiary, including the following expenses: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses, which are approved by the Secretary of the Treasury under regulations and consistent with the purposes of the federal ABLE Act.(n) This section shall become operative on January 1, 2026.
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3- Assembly Bill No. 339 CHAPTER 324 An act to amend Sections 17140.4 and 23711.4 of the Revenue and Taxation Code and to amend, repeal, and add Section 4875 of the Welfare and Institutions Code, relating to Qualified ABLE Program. [ Approved by Governor October 07, 2023. Filed with Secretary of State October 07, 2023. ] LEGISLATIVE COUNSEL'S DIGESTAB 339, Irwin. Qualified ABLE Program: age limit.Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting eligible individuals with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified. Under the ABLE Act, pursuant to the Consolidated Appropriations Act, 2023, an eligible individual for a taxable year is an individual entitled to specified benefits based on blindness or disability or for whom there is a disability certification filed with the Secretary of the Treasury, and such blindness or disability occurred before the date on which the individual attained 26 years of age, or, on and after January 1, 2026, 46 years of age.Existing law establishes the Qualified ABLE Program, administered by the California ABLE Act Board, in this state for purposes of implementing the federal ABLE Act, and provides the same definition for eligible individual.Existing law, the Personal Income Tax Law and the Corporation Tax Law, for taxable years beginning on or after January 1, 2016, conforms to the exclusions from gross income provided under federal income tax law provisions relating to the ABLE Act, as those exclusions read in specified federal law prior to the Consolidated Appropriations Act, 2023.This bill would, commencing January 1, 2026, revise the definition of eligible individual under the Qualified ABLE Program by increasing the age limit for when an eligible individuals blindness or disability occurred to 46 years of age to conform with federal ABLE Act.This bill would also conform, for taxable years beginning on or after January 1, 2026, state tax law to those changes relating to qualified ABLE programs made by the Consolidated Appropriations Act, 2023.Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.This bill would make specified findings complying with this requirement for the above-described tax expenditure. The bill would require the Treasurers office to submit, no later than January 1, 2030, a report to the Legislature, detailing the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
3+ Enrolled September 14, 2023 Passed IN Senate September 12, 2023 Passed IN Assembly May 25, 2023 Amended IN Assembly March 14, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 339Introduced by Assembly Member IrwinJanuary 30, 2023 An act to amend Sections 17140.4 and 23711.4 of the Revenue and Taxation Code and to amend, repeal, and add Section 4875 of the Welfare and Institutions Code, relating to Qualified ABLE Program. LEGISLATIVE COUNSEL'S DIGESTAB 339, Irwin. Qualified ABLE Program: age limit.Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting eligible individuals with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified. Under the ABLE Act, pursuant to the Consolidated Appropriations Act, 2023, an eligible individual for a taxable year is an individual entitled to specified benefits based on blindness or disability or for whom there is a disability certification filed with the Secretary of the Treasury, and such blindness or disability occurred before the date on which the individual attained 26 years of age, or, on and after January 1, 2026, 46 years of age.Existing law establishes the Qualified ABLE Program, administered by the California ABLE Act Board, in this state for purposes of implementing the federal ABLE Act, and provides the same definition for eligible individual.Existing law, the Personal Income Tax Law and the Corporation Tax Law, for taxable years beginning on or after January 1, 2016, conforms to the exclusions from gross income provided under federal income tax law provisions relating to the ABLE Act, as those exclusions read in specified federal law prior to the Consolidated Appropriations Act, 2023.This bill would, commencing January 1, 2026, revise the definition of eligible individual under the Qualified ABLE Program by increasing the age limit for when an eligible individuals blindness or disability occurred to 46 years of age to conform with federal ABLE Act.This bill would also conform, for taxable years beginning on or after January 1, 2026, state tax law to those changes relating to qualified ABLE programs made by the Consolidated Appropriations Act, 2023.Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.This bill would make specified findings complying with this requirement for the above-described tax expenditure. The bill would require the Treasurers office to submit, no later than January 1, 2030, a report to the Legislature, detailing the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
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5- Assembly Bill No. 339 CHAPTER 324
5+ Enrolled September 14, 2023 Passed IN Senate September 12, 2023 Passed IN Assembly May 25, 2023 Amended IN Assembly March 14, 2023
66
7- Assembly Bill No. 339
7+Enrolled September 14, 2023
8+Passed IN Senate September 12, 2023
9+Passed IN Assembly May 25, 2023
10+Amended IN Assembly March 14, 2023
811
9- CHAPTER 324
12+ CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
13+
14+ Assembly Bill
15+
16+No. 339
17+
18+Introduced by Assembly Member IrwinJanuary 30, 2023
19+
20+Introduced by Assembly Member Irwin
21+January 30, 2023
1022
1123 An act to amend Sections 17140.4 and 23711.4 of the Revenue and Taxation Code and to amend, repeal, and add Section 4875 of the Welfare and Institutions Code, relating to Qualified ABLE Program.
12-
13- [ Approved by Governor October 07, 2023. Filed with Secretary of State October 07, 2023. ]
1424
1525 LEGISLATIVE COUNSEL'S DIGEST
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1727 ## LEGISLATIVE COUNSEL'S DIGEST
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1929 AB 339, Irwin. Qualified ABLE Program: age limit.
2030
2131 Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting eligible individuals with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified. Under the ABLE Act, pursuant to the Consolidated Appropriations Act, 2023, an eligible individual for a taxable year is an individual entitled to specified benefits based on blindness or disability or for whom there is a disability certification filed with the Secretary of the Treasury, and such blindness or disability occurred before the date on which the individual attained 26 years of age, or, on and after January 1, 2026, 46 years of age.Existing law establishes the Qualified ABLE Program, administered by the California ABLE Act Board, in this state for purposes of implementing the federal ABLE Act, and provides the same definition for eligible individual.Existing law, the Personal Income Tax Law and the Corporation Tax Law, for taxable years beginning on or after January 1, 2016, conforms to the exclusions from gross income provided under federal income tax law provisions relating to the ABLE Act, as those exclusions read in specified federal law prior to the Consolidated Appropriations Act, 2023.This bill would, commencing January 1, 2026, revise the definition of eligible individual under the Qualified ABLE Program by increasing the age limit for when an eligible individuals blindness or disability occurred to 46 years of age to conform with federal ABLE Act.This bill would also conform, for taxable years beginning on or after January 1, 2026, state tax law to those changes relating to qualified ABLE programs made by the Consolidated Appropriations Act, 2023.Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.This bill would make specified findings complying with this requirement for the above-described tax expenditure. The bill would require the Treasurers office to submit, no later than January 1, 2030, a report to the Legislature, detailing the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.
2232
2333 Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting eligible individuals with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified. Under the ABLE Act, pursuant to the Consolidated Appropriations Act, 2023, an eligible individual for a taxable year is an individual entitled to specified benefits based on blindness or disability or for whom there is a disability certification filed with the Secretary of the Treasury, and such blindness or disability occurred before the date on which the individual attained 26 years of age, or, on and after January 1, 2026, 46 years of age.
2434
2535 Existing law establishes the Qualified ABLE Program, administered by the California ABLE Act Board, in this state for purposes of implementing the federal ABLE Act, and provides the same definition for eligible individual.
2636
2737 Existing law, the Personal Income Tax Law and the Corporation Tax Law, for taxable years beginning on or after January 1, 2016, conforms to the exclusions from gross income provided under federal income tax law provisions relating to the ABLE Act, as those exclusions read in specified federal law prior to the Consolidated Appropriations Act, 2023.
2838
2939 This bill would, commencing January 1, 2026, revise the definition of eligible individual under the Qualified ABLE Program by increasing the age limit for when an eligible individuals blindness or disability occurred to 46 years of age to conform with federal ABLE Act.
3040
3141 This bill would also conform, for taxable years beginning on or after January 1, 2026, state tax law to those changes relating to qualified ABLE programs made by the Consolidated Appropriations Act, 2023.
3242
3343 Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.
3444
3545 This bill would make specified findings complying with this requirement for the above-described tax expenditure. The bill would require the Treasurers office to submit, no later than January 1, 2030, a report to the Legislature, detailing the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.
3646
3747 ## Digest Key
3848
3949 ## Bill Text
4050
4151 The people of the State of California do enact as follows:SECTION 1. Section 17140.4 of the Revenue and Taxation Code is amended to read:17140.4. For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a) Section 529A(a) of the Internal Revenue Code is modified as follows:(1) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(d) (1) The amendments made by Section 303(a) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529A(b)(1) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) The amendments made by Section 303(b) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(3) and 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs shall apply, except as otherwise provided.(3) The amendments made by Section 303(c) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(4) and 529A(c)(1)(C)(i) of the Internal Revenue Code, relating to qualified ABLE program, shall apply, except as otherwise provided.(e) The amendments made by Section 11024(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 529A(b)(2)(B) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(f) (1) For taxable years beginning on or after January 1, 2026, the amendments made by Section 124 of the Consolidated Appropriations Act, 2023 (Public Law 117-328) to Section 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) (A) For the purpose of complying with Section 41, as it relates to the tax expenditures established by this subdivision and subdivision (f) of Section 23711.4 (hereafter the tax expenditures,) the Legislature finds and declares as follows:(i) The goal, purpose, and objective of the tax expenditures are to encourage and assist individuals and families to save private funds for purposes of supporting persons with disabilities to maintain their health, independent, and quality of life.(ii) The performance indicators for the Legislature to use in determining whether the tax expenditures are achieving their stated goal shall be the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.(B) No later than January 1, 2030, the Treasurers office shall submit a report to the Legislature, in compliance with Section 9795 of the Government Code, detailing the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.SEC. 2. Section 23711.4 of the Revenue and Taxation Code is amended to read:23711.4. For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a) Section 529A(a) of the Internal Revenue Code is modified as follows:(1) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(d) (1) The amendments made by Section 303(a) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529A(b)(1) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) The amendments made by Section 303(b) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(3) and 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(3) The amendments made by Section 303(c) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(4) and 529A(c)(1)(C)(i) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(e) The amendments made by Section 11024(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 529A(b)(2)(B) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(f) (1) For taxable years beginning on or after January 1, 2026, the amendments made by Section 124 of the Consolidated Appropriations Act, 2023 (Public Law 117-328) to Section 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) For purposes of complying with Section 41, the goal, purpose, objective, performance indicators, and data collection requirements for the tax expenditure allowed by this subdivision shall be as specified in subdivision (f) of Section 17140.4.SEC. 3. Section 4875 of the Welfare and Institutions Code is amended to read:4875. For purposes of this chapter:(a) ABLE account or account means the account established for and owned by a designated beneficiary pursuant to this chapter for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account.(b) Administrative fund means the fund used to administer this chapter.(c) Board means the California ABLE Act Board established under this chapter.(d) California ABLE Program Trust or ABLE program trust means the trust created pursuant to this chapter.(e) CalABLE account means an ABLE account that is established within the program established by this chapter and administered by the board.(f) Designated beneficiary means the eligible individual for whom the ABLE account was established and who is the owner of the account.(g) Eligible individual means an individual who is eligible under the program for a taxable year if blindness or disability occurred before the date on which the individual attained 26 years of age, and during that taxable year either of the following criteria are satisfied:(1) The individual is entitled to benefits based on blindness or disability under Title II or XVI of the federal Social Security Act, and that blindness or disability occurred before the date on which the individual attained 26 years of age.(2) A disability certification, as defined in the federal ABLE Act, with respect to the individual is filed pursuant to the requirements set forth in the federal ABLE Act.(h) Federal ABLE Act means the federal Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (as codified in Section 529A of Title 26 of the United States Code and amended through Public Law 115-141).(i) Investment management means the functions performed by a manager contracted to perform functions delegated by the board.(j) Investment manager means a manager contracted to perform functions delegated by the board.(k) Program fund means the program fund established by this chapter, which shall be held as a separate fund within the California ABLE Program Trust.(l) Qualified ABLE Program or program means the program established by this chapter to implement the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code.(m) Qualified disability expenses means any expenses related to the eligible individuals blindness or disability that are made for the benefit of an eligible individual who is the designated beneficiary, including the following expenses: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses, which are approved by the Secretary of the Treasury under regulations and consistent with the purposes of the federal ABLE Act.(n) This section shall remain in effect only until January 1, 2026, and as of that date is repealed.SEC. 4. Section 4875 is added to the Welfare and Institutions Code, to read:4875. For purposes of this chapter:(a) ABLE account or account means the account established for and owned by a designated beneficiary pursuant to this chapter for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account.(b) Administrative fund means the fund used to administer this chapter.(c) Board means the California ABLE Act Board established under this chapter.(d) California ABLE Program Trust or ABLE program trust means the trust created pursuant to this chapter.(e) CalABLE account means an ABLE account that is established within the program established by this chapter and administered by the board.(f) Designated beneficiary means the eligible individual for whom the ABLE account was established and who is the owner of the account.(g) Eligible individual means an individual who is eligible under the program for a taxable year if blindness or disability occurred before the date on which the individual attained 46 years of age, and during that taxable year either of the following criteria are satisfied:(1) The individual is entitled to benefits based on blindness or disability under Title II or XVI of the federal Social Security Act, and that blindness or disability occurred before the date on which the individual attained 46 years of age.(2) A disability certification, as defined in the federal ABLE Act, with respect to the individual is filed pursuant to the requirements set forth in the federal ABLE Act.(h) Federal ABLE Act means the federal Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (as codified in Section 529A of Title 26 of the United States Code and amended through Public Law 117-328).(i) Investment management means the functions performed by a manager contracted to perform functions delegated by the board.(j) Investment manager means a manager contracted to perform functions delegated by the board.(k) Program fund means the program fund established by this chapter, which shall be held as a separate fund within the California ABLE Program Trust.(l) Qualified ABLE Program or program means the program established by this chapter to implement the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code.(m) Qualified disability expenses means any expenses related to the eligible individuals blindness or disability that are made for the benefit of an eligible individual who is the designated beneficiary, including the following expenses: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses, which are approved by the Secretary of the Treasury under regulations and consistent with the purposes of the federal ABLE Act.(n) This section shall become operative on January 1, 2026.
4252
4353 The people of the State of California do enact as follows:
4454
4555 ## The people of the State of California do enact as follows:
4656
4757 SECTION 1. Section 17140.4 of the Revenue and Taxation Code is amended to read:17140.4. For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a) Section 529A(a) of the Internal Revenue Code is modified as follows:(1) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(d) (1) The amendments made by Section 303(a) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529A(b)(1) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) The amendments made by Section 303(b) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(3) and 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs shall apply, except as otherwise provided.(3) The amendments made by Section 303(c) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(4) and 529A(c)(1)(C)(i) of the Internal Revenue Code, relating to qualified ABLE program, shall apply, except as otherwise provided.(e) The amendments made by Section 11024(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 529A(b)(2)(B) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(f) (1) For taxable years beginning on or after January 1, 2026, the amendments made by Section 124 of the Consolidated Appropriations Act, 2023 (Public Law 117-328) to Section 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) (A) For the purpose of complying with Section 41, as it relates to the tax expenditures established by this subdivision and subdivision (f) of Section 23711.4 (hereafter the tax expenditures,) the Legislature finds and declares as follows:(i) The goal, purpose, and objective of the tax expenditures are to encourage and assist individuals and families to save private funds for purposes of supporting persons with disabilities to maintain their health, independent, and quality of life.(ii) The performance indicators for the Legislature to use in determining whether the tax expenditures are achieving their stated goal shall be the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.(B) No later than January 1, 2030, the Treasurers office shall submit a report to the Legislature, in compliance with Section 9795 of the Government Code, detailing the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.
4858
4959 SECTION 1. Section 17140.4 of the Revenue and Taxation Code is amended to read:
5060
5161 ### SECTION 1.
5262
5363 17140.4. For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a) Section 529A(a) of the Internal Revenue Code is modified as follows:(1) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(d) (1) The amendments made by Section 303(a) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529A(b)(1) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) The amendments made by Section 303(b) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(3) and 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs shall apply, except as otherwise provided.(3) The amendments made by Section 303(c) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(4) and 529A(c)(1)(C)(i) of the Internal Revenue Code, relating to qualified ABLE program, shall apply, except as otherwise provided.(e) The amendments made by Section 11024(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 529A(b)(2)(B) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(f) (1) For taxable years beginning on or after January 1, 2026, the amendments made by Section 124 of the Consolidated Appropriations Act, 2023 (Public Law 117-328) to Section 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) (A) For the purpose of complying with Section 41, as it relates to the tax expenditures established by this subdivision and subdivision (f) of Section 23711.4 (hereafter the tax expenditures,) the Legislature finds and declares as follows:(i) The goal, purpose, and objective of the tax expenditures are to encourage and assist individuals and families to save private funds for purposes of supporting persons with disabilities to maintain their health, independent, and quality of life.(ii) The performance indicators for the Legislature to use in determining whether the tax expenditures are achieving their stated goal shall be the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.(B) No later than January 1, 2030, the Treasurers office shall submit a report to the Legislature, in compliance with Section 9795 of the Government Code, detailing the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.
5464
5565 17140.4. For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a) Section 529A(a) of the Internal Revenue Code is modified as follows:(1) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(d) (1) The amendments made by Section 303(a) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529A(b)(1) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) The amendments made by Section 303(b) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(3) and 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs shall apply, except as otherwise provided.(3) The amendments made by Section 303(c) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(4) and 529A(c)(1)(C)(i) of the Internal Revenue Code, relating to qualified ABLE program, shall apply, except as otherwise provided.(e) The amendments made by Section 11024(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 529A(b)(2)(B) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(f) (1) For taxable years beginning on or after January 1, 2026, the amendments made by Section 124 of the Consolidated Appropriations Act, 2023 (Public Law 117-328) to Section 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) (A) For the purpose of complying with Section 41, as it relates to the tax expenditures established by this subdivision and subdivision (f) of Section 23711.4 (hereafter the tax expenditures,) the Legislature finds and declares as follows:(i) The goal, purpose, and objective of the tax expenditures are to encourage and assist individuals and families to save private funds for purposes of supporting persons with disabilities to maintain their health, independent, and quality of life.(ii) The performance indicators for the Legislature to use in determining whether the tax expenditures are achieving their stated goal shall be the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.(B) No later than January 1, 2030, the Treasurers office shall submit a report to the Legislature, in compliance with Section 9795 of the Government Code, detailing the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.
5666
5767 17140.4. For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a) Section 529A(a) of the Internal Revenue Code is modified as follows:(1) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(d) (1) The amendments made by Section 303(a) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529A(b)(1) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) The amendments made by Section 303(b) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(3) and 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs shall apply, except as otherwise provided.(3) The amendments made by Section 303(c) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(4) and 529A(c)(1)(C)(i) of the Internal Revenue Code, relating to qualified ABLE program, shall apply, except as otherwise provided.(e) The amendments made by Section 11024(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 529A(b)(2)(B) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(f) (1) For taxable years beginning on or after January 1, 2026, the amendments made by Section 124 of the Consolidated Appropriations Act, 2023 (Public Law 117-328) to Section 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) (A) For the purpose of complying with Section 41, as it relates to the tax expenditures established by this subdivision and subdivision (f) of Section 23711.4 (hereafter the tax expenditures,) the Legislature finds and declares as follows:(i) The goal, purpose, and objective of the tax expenditures are to encourage and assist individuals and families to save private funds for purposes of supporting persons with disabilities to maintain their health, independent, and quality of life.(ii) The performance indicators for the Legislature to use in determining whether the tax expenditures are achieving their stated goal shall be the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.(B) No later than January 1, 2030, the Treasurers office shall submit a report to the Legislature, in compliance with Section 9795 of the Government Code, detailing the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.
5868
5969
6070
6171 17140.4. For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.
6272
6373 (a) Section 529A(a) of the Internal Revenue Code is modified as follows:
6474
6575 (1) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.
6676
6777 (2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.
6878
6979 (b) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.
7080
7181 (c) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.
7282
7383 (d) (1) The amendments made by Section 303(a) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529A(b)(1) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.
7484
7585 (2) The amendments made by Section 303(b) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(3) and 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs shall apply, except as otherwise provided.
7686
7787 (3) The amendments made by Section 303(c) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(4) and 529A(c)(1)(C)(i) of the Internal Revenue Code, relating to qualified ABLE program, shall apply, except as otherwise provided.
7888
7989 (e) The amendments made by Section 11024(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 529A(b)(2)(B) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.
8090
8191 (f) (1) For taxable years beginning on or after January 1, 2026, the amendments made by Section 124 of the Consolidated Appropriations Act, 2023 (Public Law 117-328) to Section 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.
8292
8393 (2) (A) For the purpose of complying with Section 41, as it relates to the tax expenditures established by this subdivision and subdivision (f) of Section 23711.4 (hereafter the tax expenditures,) the Legislature finds and declares as follows:
8494
8595 (i) The goal, purpose, and objective of the tax expenditures are to encourage and assist individuals and families to save private funds for purposes of supporting persons with disabilities to maintain their health, independent, and quality of life.
8696
8797 (ii) The performance indicators for the Legislature to use in determining whether the tax expenditures are achieving their stated goal shall be the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.
8898
8999 (B) No later than January 1, 2030, the Treasurers office shall submit a report to the Legislature, in compliance with Section 9795 of the Government Code, detailing the number of ABLE accounts that are created for individuals who are made newly eligible by the raised age limit.
90100
91101 SEC. 2. Section 23711.4 of the Revenue and Taxation Code is amended to read:23711.4. For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a) Section 529A(a) of the Internal Revenue Code is modified as follows:(1) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(d) (1) The amendments made by Section 303(a) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529A(b)(1) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) The amendments made by Section 303(b) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(3) and 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(3) The amendments made by Section 303(c) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(4) and 529A(c)(1)(C)(i) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(e) The amendments made by Section 11024(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 529A(b)(2)(B) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(f) (1) For taxable years beginning on or after January 1, 2026, the amendments made by Section 124 of the Consolidated Appropriations Act, 2023 (Public Law 117-328) to Section 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) For purposes of complying with Section 41, the goal, purpose, objective, performance indicators, and data collection requirements for the tax expenditure allowed by this subdivision shall be as specified in subdivision (f) of Section 17140.4.
92102
93103 SEC. 2. Section 23711.4 of the Revenue and Taxation Code is amended to read:
94104
95105 ### SEC. 2.
96106
97107 23711.4. For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a) Section 529A(a) of the Internal Revenue Code is modified as follows:(1) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(d) (1) The amendments made by Section 303(a) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529A(b)(1) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) The amendments made by Section 303(b) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(3) and 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(3) The amendments made by Section 303(c) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(4) and 529A(c)(1)(C)(i) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(e) The amendments made by Section 11024(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 529A(b)(2)(B) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(f) (1) For taxable years beginning on or after January 1, 2026, the amendments made by Section 124 of the Consolidated Appropriations Act, 2023 (Public Law 117-328) to Section 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) For purposes of complying with Section 41, the goal, purpose, objective, performance indicators, and data collection requirements for the tax expenditure allowed by this subdivision shall be as specified in subdivision (f) of Section 17140.4.
98108
99109 23711.4. For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a) Section 529A(a) of the Internal Revenue Code is modified as follows:(1) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(d) (1) The amendments made by Section 303(a) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529A(b)(1) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) The amendments made by Section 303(b) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(3) and 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(3) The amendments made by Section 303(c) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(4) and 529A(c)(1)(C)(i) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(e) The amendments made by Section 11024(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 529A(b)(2)(B) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(f) (1) For taxable years beginning on or after January 1, 2026, the amendments made by Section 124 of the Consolidated Appropriations Act, 2023 (Public Law 117-328) to Section 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) For purposes of complying with Section 41, the goal, purpose, objective, performance indicators, and data collection requirements for the tax expenditure allowed by this subdivision shall be as specified in subdivision (f) of Section 17140.4.
100110
101111 23711.4. For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a) Section 529A(a) of the Internal Revenue Code is modified as follows:(1) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(d) (1) The amendments made by Section 303(a) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529A(b)(1) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) The amendments made by Section 303(b) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(3) and 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(3) The amendments made by Section 303(c) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(4) and 529A(c)(1)(C)(i) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(e) The amendments made by Section 11024(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 529A(b)(2)(B) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(f) (1) For taxable years beginning on or after January 1, 2026, the amendments made by Section 124 of the Consolidated Appropriations Act, 2023 (Public Law 117-328) to Section 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.(2) For purposes of complying with Section 41, the goal, purpose, objective, performance indicators, and data collection requirements for the tax expenditure allowed by this subdivision shall be as specified in subdivision (f) of Section 17140.4.
102112
103113
104114
105115 23711.4. For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.
106116
107117 (a) Section 529A(a) of the Internal Revenue Code is modified as follows:
108118
109119 (1) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.
110120
111121 (2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.
112122
113123 (b) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.
114124
115125 (c) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.
116126
117127 (d) (1) The amendments made by Section 303(a) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529A(b)(1) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.
118128
119129 (2) The amendments made by Section 303(b) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(3) and 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.
120130
121131 (3) The amendments made by Section 303(c) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Sections 529A(d)(4) and 529A(c)(1)(C)(i) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.
122132
123133 (e) The amendments made by Section 11024(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 529A(b)(2)(B) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.
124134
125135 (f) (1) For taxable years beginning on or after January 1, 2026, the amendments made by Section 124 of the Consolidated Appropriations Act, 2023 (Public Law 117-328) to Section 529A(e) of the Internal Revenue Code, relating to qualified ABLE programs, shall apply, except as otherwise provided.
126136
127137 (2) For purposes of complying with Section 41, the goal, purpose, objective, performance indicators, and data collection requirements for the tax expenditure allowed by this subdivision shall be as specified in subdivision (f) of Section 17140.4.
128138
129139 SEC. 3. Section 4875 of the Welfare and Institutions Code is amended to read:4875. For purposes of this chapter:(a) ABLE account or account means the account established for and owned by a designated beneficiary pursuant to this chapter for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account.(b) Administrative fund means the fund used to administer this chapter.(c) Board means the California ABLE Act Board established under this chapter.(d) California ABLE Program Trust or ABLE program trust means the trust created pursuant to this chapter.(e) CalABLE account means an ABLE account that is established within the program established by this chapter and administered by the board.(f) Designated beneficiary means the eligible individual for whom the ABLE account was established and who is the owner of the account.(g) Eligible individual means an individual who is eligible under the program for a taxable year if blindness or disability occurred before the date on which the individual attained 26 years of age, and during that taxable year either of the following criteria are satisfied:(1) The individual is entitled to benefits based on blindness or disability under Title II or XVI of the federal Social Security Act, and that blindness or disability occurred before the date on which the individual attained 26 years of age.(2) A disability certification, as defined in the federal ABLE Act, with respect to the individual is filed pursuant to the requirements set forth in the federal ABLE Act.(h) Federal ABLE Act means the federal Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (as codified in Section 529A of Title 26 of the United States Code and amended through Public Law 115-141).(i) Investment management means the functions performed by a manager contracted to perform functions delegated by the board.(j) Investment manager means a manager contracted to perform functions delegated by the board.(k) Program fund means the program fund established by this chapter, which shall be held as a separate fund within the California ABLE Program Trust.(l) Qualified ABLE Program or program means the program established by this chapter to implement the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code.(m) Qualified disability expenses means any expenses related to the eligible individuals blindness or disability that are made for the benefit of an eligible individual who is the designated beneficiary, including the following expenses: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses, which are approved by the Secretary of the Treasury under regulations and consistent with the purposes of the federal ABLE Act.(n) This section shall remain in effect only until January 1, 2026, and as of that date is repealed.
130140
131141 SEC. 3. Section 4875 of the Welfare and Institutions Code is amended to read:
132142
133143 ### SEC. 3.
134144
135145 4875. For purposes of this chapter:(a) ABLE account or account means the account established for and owned by a designated beneficiary pursuant to this chapter for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account.(b) Administrative fund means the fund used to administer this chapter.(c) Board means the California ABLE Act Board established under this chapter.(d) California ABLE Program Trust or ABLE program trust means the trust created pursuant to this chapter.(e) CalABLE account means an ABLE account that is established within the program established by this chapter and administered by the board.(f) Designated beneficiary means the eligible individual for whom the ABLE account was established and who is the owner of the account.(g) Eligible individual means an individual who is eligible under the program for a taxable year if blindness or disability occurred before the date on which the individual attained 26 years of age, and during that taxable year either of the following criteria are satisfied:(1) The individual is entitled to benefits based on blindness or disability under Title II or XVI of the federal Social Security Act, and that blindness or disability occurred before the date on which the individual attained 26 years of age.(2) A disability certification, as defined in the federal ABLE Act, with respect to the individual is filed pursuant to the requirements set forth in the federal ABLE Act.(h) Federal ABLE Act means the federal Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (as codified in Section 529A of Title 26 of the United States Code and amended through Public Law 115-141).(i) Investment management means the functions performed by a manager contracted to perform functions delegated by the board.(j) Investment manager means a manager contracted to perform functions delegated by the board.(k) Program fund means the program fund established by this chapter, which shall be held as a separate fund within the California ABLE Program Trust.(l) Qualified ABLE Program or program means the program established by this chapter to implement the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code.(m) Qualified disability expenses means any expenses related to the eligible individuals blindness or disability that are made for the benefit of an eligible individual who is the designated beneficiary, including the following expenses: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses, which are approved by the Secretary of the Treasury under regulations and consistent with the purposes of the federal ABLE Act.(n) This section shall remain in effect only until January 1, 2026, and as of that date is repealed.
136146
137147 4875. For purposes of this chapter:(a) ABLE account or account means the account established for and owned by a designated beneficiary pursuant to this chapter for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account.(b) Administrative fund means the fund used to administer this chapter.(c) Board means the California ABLE Act Board established under this chapter.(d) California ABLE Program Trust or ABLE program trust means the trust created pursuant to this chapter.(e) CalABLE account means an ABLE account that is established within the program established by this chapter and administered by the board.(f) Designated beneficiary means the eligible individual for whom the ABLE account was established and who is the owner of the account.(g) Eligible individual means an individual who is eligible under the program for a taxable year if blindness or disability occurred before the date on which the individual attained 26 years of age, and during that taxable year either of the following criteria are satisfied:(1) The individual is entitled to benefits based on blindness or disability under Title II or XVI of the federal Social Security Act, and that blindness or disability occurred before the date on which the individual attained 26 years of age.(2) A disability certification, as defined in the federal ABLE Act, with respect to the individual is filed pursuant to the requirements set forth in the federal ABLE Act.(h) Federal ABLE Act means the federal Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (as codified in Section 529A of Title 26 of the United States Code and amended through Public Law 115-141).(i) Investment management means the functions performed by a manager contracted to perform functions delegated by the board.(j) Investment manager means a manager contracted to perform functions delegated by the board.(k) Program fund means the program fund established by this chapter, which shall be held as a separate fund within the California ABLE Program Trust.(l) Qualified ABLE Program or program means the program established by this chapter to implement the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code.(m) Qualified disability expenses means any expenses related to the eligible individuals blindness or disability that are made for the benefit of an eligible individual who is the designated beneficiary, including the following expenses: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses, which are approved by the Secretary of the Treasury under regulations and consistent with the purposes of the federal ABLE Act.(n) This section shall remain in effect only until January 1, 2026, and as of that date is repealed.
138148
139149 4875. For purposes of this chapter:(a) ABLE account or account means the account established for and owned by a designated beneficiary pursuant to this chapter for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account.(b) Administrative fund means the fund used to administer this chapter.(c) Board means the California ABLE Act Board established under this chapter.(d) California ABLE Program Trust or ABLE program trust means the trust created pursuant to this chapter.(e) CalABLE account means an ABLE account that is established within the program established by this chapter and administered by the board.(f) Designated beneficiary means the eligible individual for whom the ABLE account was established and who is the owner of the account.(g) Eligible individual means an individual who is eligible under the program for a taxable year if blindness or disability occurred before the date on which the individual attained 26 years of age, and during that taxable year either of the following criteria are satisfied:(1) The individual is entitled to benefits based on blindness or disability under Title II or XVI of the federal Social Security Act, and that blindness or disability occurred before the date on which the individual attained 26 years of age.(2) A disability certification, as defined in the federal ABLE Act, with respect to the individual is filed pursuant to the requirements set forth in the federal ABLE Act.(h) Federal ABLE Act means the federal Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (as codified in Section 529A of Title 26 of the United States Code and amended through Public Law 115-141).(i) Investment management means the functions performed by a manager contracted to perform functions delegated by the board.(j) Investment manager means a manager contracted to perform functions delegated by the board.(k) Program fund means the program fund established by this chapter, which shall be held as a separate fund within the California ABLE Program Trust.(l) Qualified ABLE Program or program means the program established by this chapter to implement the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code.(m) Qualified disability expenses means any expenses related to the eligible individuals blindness or disability that are made for the benefit of an eligible individual who is the designated beneficiary, including the following expenses: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses, which are approved by the Secretary of the Treasury under regulations and consistent with the purposes of the federal ABLE Act.(n) This section shall remain in effect only until January 1, 2026, and as of that date is repealed.
140150
141151
142152
143153 4875. For purposes of this chapter:
144154
145155 (a) ABLE account or account means the account established for and owned by a designated beneficiary pursuant to this chapter for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account.
146156
147157 (b) Administrative fund means the fund used to administer this chapter.
148158
149159 (c) Board means the California ABLE Act Board established under this chapter.
150160
151161 (d) California ABLE Program Trust or ABLE program trust means the trust created pursuant to this chapter.
152162
153163 (e) CalABLE account means an ABLE account that is established within the program established by this chapter and administered by the board.
154164
155165 (f) Designated beneficiary means the eligible individual for whom the ABLE account was established and who is the owner of the account.
156166
157167 (g) Eligible individual means an individual who is eligible under the program for a taxable year if blindness or disability occurred before the date on which the individual attained 26 years of age, and during that taxable year either of the following criteria are satisfied:
158168
159169 (1) The individual is entitled to benefits based on blindness or disability under Title II or XVI of the federal Social Security Act, and that blindness or disability occurred before the date on which the individual attained 26 years of age.
160170
161171 (2) A disability certification, as defined in the federal ABLE Act, with respect to the individual is filed pursuant to the requirements set forth in the federal ABLE Act.
162172
163173 (h) Federal ABLE Act means the federal Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (as codified in Section 529A of Title 26 of the United States Code and amended through Public Law 115-141).
164174
165175 (i) Investment management means the functions performed by a manager contracted to perform functions delegated by the board.
166176
167177 (j) Investment manager means a manager contracted to perform functions delegated by the board.
168178
169179 (k) Program fund means the program fund established by this chapter, which shall be held as a separate fund within the California ABLE Program Trust.
170180
171181 (l) Qualified ABLE Program or program means the program established by this chapter to implement the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code.
172182
173183 (m) Qualified disability expenses means any expenses related to the eligible individuals blindness or disability that are made for the benefit of an eligible individual who is the designated beneficiary, including the following expenses: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses, which are approved by the Secretary of the Treasury under regulations and consistent with the purposes of the federal ABLE Act.
174184
175185 (n) This section shall remain in effect only until January 1, 2026, and as of that date is repealed.
176186
177187 SEC. 4. Section 4875 is added to the Welfare and Institutions Code, to read:4875. For purposes of this chapter:(a) ABLE account or account means the account established for and owned by a designated beneficiary pursuant to this chapter for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account.(b) Administrative fund means the fund used to administer this chapter.(c) Board means the California ABLE Act Board established under this chapter.(d) California ABLE Program Trust or ABLE program trust means the trust created pursuant to this chapter.(e) CalABLE account means an ABLE account that is established within the program established by this chapter and administered by the board.(f) Designated beneficiary means the eligible individual for whom the ABLE account was established and who is the owner of the account.(g) Eligible individual means an individual who is eligible under the program for a taxable year if blindness or disability occurred before the date on which the individual attained 46 years of age, and during that taxable year either of the following criteria are satisfied:(1) The individual is entitled to benefits based on blindness or disability under Title II or XVI of the federal Social Security Act, and that blindness or disability occurred before the date on which the individual attained 46 years of age.(2) A disability certification, as defined in the federal ABLE Act, with respect to the individual is filed pursuant to the requirements set forth in the federal ABLE Act.(h) Federal ABLE Act means the federal Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (as codified in Section 529A of Title 26 of the United States Code and amended through Public Law 117-328).(i) Investment management means the functions performed by a manager contracted to perform functions delegated by the board.(j) Investment manager means a manager contracted to perform functions delegated by the board.(k) Program fund means the program fund established by this chapter, which shall be held as a separate fund within the California ABLE Program Trust.(l) Qualified ABLE Program or program means the program established by this chapter to implement the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code.(m) Qualified disability expenses means any expenses related to the eligible individuals blindness or disability that are made for the benefit of an eligible individual who is the designated beneficiary, including the following expenses: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses, which are approved by the Secretary of the Treasury under regulations and consistent with the purposes of the federal ABLE Act.(n) This section shall become operative on January 1, 2026.
178188
179189 SEC. 4. Section 4875 is added to the Welfare and Institutions Code, to read:
180190
181191 ### SEC. 4.
182192
183193 4875. For purposes of this chapter:(a) ABLE account or account means the account established for and owned by a designated beneficiary pursuant to this chapter for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account.(b) Administrative fund means the fund used to administer this chapter.(c) Board means the California ABLE Act Board established under this chapter.(d) California ABLE Program Trust or ABLE program trust means the trust created pursuant to this chapter.(e) CalABLE account means an ABLE account that is established within the program established by this chapter and administered by the board.(f) Designated beneficiary means the eligible individual for whom the ABLE account was established and who is the owner of the account.(g) Eligible individual means an individual who is eligible under the program for a taxable year if blindness or disability occurred before the date on which the individual attained 46 years of age, and during that taxable year either of the following criteria are satisfied:(1) The individual is entitled to benefits based on blindness or disability under Title II or XVI of the federal Social Security Act, and that blindness or disability occurred before the date on which the individual attained 46 years of age.(2) A disability certification, as defined in the federal ABLE Act, with respect to the individual is filed pursuant to the requirements set forth in the federal ABLE Act.(h) Federal ABLE Act means the federal Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (as codified in Section 529A of Title 26 of the United States Code and amended through Public Law 117-328).(i) Investment management means the functions performed by a manager contracted to perform functions delegated by the board.(j) Investment manager means a manager contracted to perform functions delegated by the board.(k) Program fund means the program fund established by this chapter, which shall be held as a separate fund within the California ABLE Program Trust.(l) Qualified ABLE Program or program means the program established by this chapter to implement the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code.(m) Qualified disability expenses means any expenses related to the eligible individuals blindness or disability that are made for the benefit of an eligible individual who is the designated beneficiary, including the following expenses: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses, which are approved by the Secretary of the Treasury under regulations and consistent with the purposes of the federal ABLE Act.(n) This section shall become operative on January 1, 2026.
184194
185195 4875. For purposes of this chapter:(a) ABLE account or account means the account established for and owned by a designated beneficiary pursuant to this chapter for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account.(b) Administrative fund means the fund used to administer this chapter.(c) Board means the California ABLE Act Board established under this chapter.(d) California ABLE Program Trust or ABLE program trust means the trust created pursuant to this chapter.(e) CalABLE account means an ABLE account that is established within the program established by this chapter and administered by the board.(f) Designated beneficiary means the eligible individual for whom the ABLE account was established and who is the owner of the account.(g) Eligible individual means an individual who is eligible under the program for a taxable year if blindness or disability occurred before the date on which the individual attained 46 years of age, and during that taxable year either of the following criteria are satisfied:(1) The individual is entitled to benefits based on blindness or disability under Title II or XVI of the federal Social Security Act, and that blindness or disability occurred before the date on which the individual attained 46 years of age.(2) A disability certification, as defined in the federal ABLE Act, with respect to the individual is filed pursuant to the requirements set forth in the federal ABLE Act.(h) Federal ABLE Act means the federal Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (as codified in Section 529A of Title 26 of the United States Code and amended through Public Law 117-328).(i) Investment management means the functions performed by a manager contracted to perform functions delegated by the board.(j) Investment manager means a manager contracted to perform functions delegated by the board.(k) Program fund means the program fund established by this chapter, which shall be held as a separate fund within the California ABLE Program Trust.(l) Qualified ABLE Program or program means the program established by this chapter to implement the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code.(m) Qualified disability expenses means any expenses related to the eligible individuals blindness or disability that are made for the benefit of an eligible individual who is the designated beneficiary, including the following expenses: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses, which are approved by the Secretary of the Treasury under regulations and consistent with the purposes of the federal ABLE Act.(n) This section shall become operative on January 1, 2026.
186196
187197 4875. For purposes of this chapter:(a) ABLE account or account means the account established for and owned by a designated beneficiary pursuant to this chapter for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account.(b) Administrative fund means the fund used to administer this chapter.(c) Board means the California ABLE Act Board established under this chapter.(d) California ABLE Program Trust or ABLE program trust means the trust created pursuant to this chapter.(e) CalABLE account means an ABLE account that is established within the program established by this chapter and administered by the board.(f) Designated beneficiary means the eligible individual for whom the ABLE account was established and who is the owner of the account.(g) Eligible individual means an individual who is eligible under the program for a taxable year if blindness or disability occurred before the date on which the individual attained 46 years of age, and during that taxable year either of the following criteria are satisfied:(1) The individual is entitled to benefits based on blindness or disability under Title II or XVI of the federal Social Security Act, and that blindness or disability occurred before the date on which the individual attained 46 years of age.(2) A disability certification, as defined in the federal ABLE Act, with respect to the individual is filed pursuant to the requirements set forth in the federal ABLE Act.(h) Federal ABLE Act means the federal Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (as codified in Section 529A of Title 26 of the United States Code and amended through Public Law 117-328).(i) Investment management means the functions performed by a manager contracted to perform functions delegated by the board.(j) Investment manager means a manager contracted to perform functions delegated by the board.(k) Program fund means the program fund established by this chapter, which shall be held as a separate fund within the California ABLE Program Trust.(l) Qualified ABLE Program or program means the program established by this chapter to implement the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code.(m) Qualified disability expenses means any expenses related to the eligible individuals blindness or disability that are made for the benefit of an eligible individual who is the designated beneficiary, including the following expenses: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses, which are approved by the Secretary of the Treasury under regulations and consistent with the purposes of the federal ABLE Act.(n) This section shall become operative on January 1, 2026.
188198
189199
190200
191201 4875. For purposes of this chapter:
192202
193203 (a) ABLE account or account means the account established for and owned by a designated beneficiary pursuant to this chapter for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account.
194204
195205 (b) Administrative fund means the fund used to administer this chapter.
196206
197207 (c) Board means the California ABLE Act Board established under this chapter.
198208
199209 (d) California ABLE Program Trust or ABLE program trust means the trust created pursuant to this chapter.
200210
201211 (e) CalABLE account means an ABLE account that is established within the program established by this chapter and administered by the board.
202212
203213 (f) Designated beneficiary means the eligible individual for whom the ABLE account was established and who is the owner of the account.
204214
205215 (g) Eligible individual means an individual who is eligible under the program for a taxable year if blindness or disability occurred before the date on which the individual attained 46 years of age, and during that taxable year either of the following criteria are satisfied:
206216
207217 (1) The individual is entitled to benefits based on blindness or disability under Title II or XVI of the federal Social Security Act, and that blindness or disability occurred before the date on which the individual attained 46 years of age.
208218
209219 (2) A disability certification, as defined in the federal ABLE Act, with respect to the individual is filed pursuant to the requirements set forth in the federal ABLE Act.
210220
211221 (h) Federal ABLE Act means the federal Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (as codified in Section 529A of Title 26 of the United States Code and amended through Public Law 117-328).
212222
213223 (i) Investment management means the functions performed by a manager contracted to perform functions delegated by the board.
214224
215225 (j) Investment manager means a manager contracted to perform functions delegated by the board.
216226
217227 (k) Program fund means the program fund established by this chapter, which shall be held as a separate fund within the California ABLE Program Trust.
218228
219229 (l) Qualified ABLE Program or program means the program established by this chapter to implement the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code.
220230
221231 (m) Qualified disability expenses means any expenses related to the eligible individuals blindness or disability that are made for the benefit of an eligible individual who is the designated beneficiary, including the following expenses: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses, which are approved by the Secretary of the Treasury under regulations and consistent with the purposes of the federal ABLE Act.
222232
223233 (n) This section shall become operative on January 1, 2026.