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OLR Bill Analysis
sSB 376
AN ACT CONCERNING THE DEPARTMENT OF DEVELOPMENTAL
SERVICES' RECOMMENDATIONS REGARDING ABLE ACCOUNTS.
SUMMARY
This bill requires funds invested in, contributed to, or distributed
from, an “Achieving a Better Life Experience” (ABLE) account to be
disregarded when determining someone's eligibility for the state-
administered general assistance program (SAGA). SAGA generally
provides cash assistance to single or married childless individuals who
have very low incomes, do not qualify for other cash assistance
programs, and are considered “transitional” or “unemployable.”
The bill also makes minor and technical changes to the ABLE statutes,
codifying recent changes to federal regulations, including:
1. establishing a hierarchy of individuals authorized to establish an
ABLE account for an eligible individual and
2. allowing eligible individuals to self-certify their disability status
when opening an ABLE account, to the satisfaction of the U.S.
Treasury secretary (26 CFR § 1.529A-2 (C)(1)).
By law, the ABLE program provides tax advantaged savings accounts
to help individuals and their families save private funds to pay for
certain expenses related to disability or blindness (see BACKGROUND).
EFFECTIVE DATE: July 1, 2022
ESTABLISHING AN ABLE ACCOUNT
Opening an Account
Under the bill, an eligible individual, or a person he or she selects,
may open an ABLE account for that individual. If the eligible individual
is unable to open an account (presumably due to mental or physical 2022SB-00376-R000153-BA.DOCX
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incapacity), the bill authorizes the following individuals to do so on the
eligible individual’s behalf, in the following order:
1. the individual’s agent under a power of attorney;
2. a conservator or legal guardian;
3. a spouse, parent, sibling, grandparent; or
4. a representative payee appointed by the U.S. Social Security
Administration.
Under prior federal regulations, an ABLE account could be opened
only by the eligible individual or his or her parent, guardian, or agent
under a power of attorney.
Disability Self-certifications
The bill allows an eligible individual to self-certify, under penalty of
perjury, his or her disability status when opening an ABLE account.
Under the bill, the disability self-certification must, to the satisfaction of
the U.S. Treasury secretary:
1. certify the individual is blind or has a medically determinable
physical or mental impairment that (a) results in marked and
severe functional limitations and (b) can be expected to result in
death or will last for at least 12 months;
2. certify the impairment or blindness occurred before age 26;
3. certify the person establishing the account is the designated
beneficiary or is authorized to establish the account; and
4. include the diagnostic code for the individual's impairment.
By law, perjury is a class D felony, which is punishable by up to five
years in prison, up to $5,000, or both (CGS § 53a-156).
BACKGROUND
Federal Law 2022SB-00376-R000153-BA.DOCX
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The federal ABLE Act (P. L. 113-295) allows states to establish and
maintain qualified ABLE programs to:
1. encourage and help individuals and families save private funds
to support individuals with disabilities to maintain health,
independence, and quality of life and
2. provide secure funding for disability-related expenses on behalf
of designated beneficiaries with disabilities that will supplement,
but not replace, benefits provided through private insurance,
Medicaid, Supplemental Security Income, employment, and
other sources.
Generally, under federal law, qualified ABLE programs are exempt
from federal taxation, and funds in ABLE accounts may not be
considered when determining eligibility for benefits or assistance
programs authorized by federal law unless the funds exceed $100,000.
COMMITTEE ACTION
Public Health Committee
Joint Favorable Substitute
Yea 31 Nay 0 (03/16/2022)