Illinois 2023-2024 Regular Session

Illinois Senate Bill SB2247 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Public Act 103-0256
2	1		SB2247 EnrolledLRB103 25759 DTM 57151 b SB2247 Enrolled LRB103 25759 DTM 57151 b
3	2		SB2247 Enrolled LRB103 25759 DTM 57151 b
4		-	AN ACT concerning assistance to persons with disabilities.
5		-	Be it enacted by the People of the State of Illinois,
6		-	represented in the General Assembly:
7		-	Section 5. The State Treasurer Act is amended by changing
8		-	Section 16.6 as follows:
9		-	(15 ILCS 505/16.6)
10		-	Sec. 16.6. ABLE account program.
11		-	(a) As used in this Section:
12		-	"ABLE account" or "account" means an account established
13		-	for the purpose of financing certain qualified expenses of
14		-	eligible individuals as specifically provided for in this
15		-	Section and authorized by Section 529A of the Internal Revenue
16		-	Code.
17		-	"ABLE account plan" or "plan" means the savings account
18		-	plan provided for in this Section.
19		-	"Account administrator" means the person or entity
20		-	selected by the State Treasurer to administer the daily
21		-	operations of the ABLE account plan and provide marketing,
22		-	recordkeeping, investment management, and other services for
23		-	the plan.
24		-	"Aggregate account balance" means the amount in an account
25		-	on a particular date or the fair market value of an account on
26		-	a particular date.
	3	+	1 AN ACT concerning assistance to persons with disabilities.
	4	+	2 Be it enacted by the People of the State of Illinois,
	5	+	3 represented in the General Assembly:
	6	+	4 Section 5. The State Treasurer Act is amended by changing
	7	+	5 Section 16.6 as follows:
	8	+	6 (15 ILCS 505/16.6)
	9	+	7 Sec. 16.6. ABLE account program.
	10	+	8 (a) As used in this Section:
	11	+	9 "ABLE account" or "account" means an account established
	12	+	10 for the purpose of financing certain qualified expenses of
	13	+	11 eligible individuals as specifically provided for in this
	14	+	12 Section and authorized by Section 529A of the Internal Revenue
	15	+	13 Code.
	16	+	14 "ABLE account plan" or "plan" means the savings account
	17	+	15 plan provided for in this Section.
	18	+	16 "Account administrator" means the person or entity
	19	+	17 selected by the State Treasurer to administer the daily
	20	+	18 operations of the ABLE account plan and provide marketing,
	21	+	19 recordkeeping, investment management, and other services for
	22	+	20 the plan.
	23	+	21 "Aggregate account balance" means the amount in an account
	24	+	22 on a particular date or the fair market value of an account on
	25	+	23 a particular date.
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33		-	"Beneficiary" or "designated beneficiary" means the ABLE
34		-	account owner.
35		-	"Contracting state" means a state without a qualified ABLE
36		-	program which has entered into a contract with Illinois to
37		-	provide residents of the contracting state access to a
38		-	qualified ABLE program.
39		-	"Designated representative" means a person or entity who
40		-	is authorized to act on behalf of a "designated beneficiary".
41		-	A designated beneficiary is authorized to act on his or her own
42		-	behalf unless the designated beneficiary is a minor or the
43		-	designated beneficiary has been adjudicated to have a
44		-	disability so that a guardian has been appointed. A designated
45		-	representative acts in a fiduciary capacity to the designated
46		-	beneficiary. A person or entity seeking to open an ABLE
47		-	account on behalf of a designated beneficiary must provide
48		-	certification, subject to penalties of perjury, of the basis
49		-	for the person's or entity's authority to act as a designated
50		-	representative and that there is no other person or entity
51		-	with higher priority to establish the ABLE account under
52		-	Section 529A of the Internal Revenue Code and federal
53		-	regulations.
54		-	"Disability certification" has the meaning given to that
55		-	term under Section 529A of the Internal Revenue Code.
56		-	"Eligible individual" has the meaning given to that term
57		-	under Section 529A of the Internal Revenue Code.
58		-	"Internal Revenue Code" means the federal Internal Revenue
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	34	+	1 "Beneficiary" or "designated beneficiary" means the ABLE
	35	+	2 account owner.
	36	+	3 "Contracting state" means a state without a qualified ABLE
	37	+	4 program which has entered into a contract with Illinois to
	38	+	5 provide residents of the contracting state access to a
	39	+	6 qualified ABLE program.
	40	+	7 "Designated representative" means a person or entity who
	41	+	8 is authorized to act on behalf of a "designated beneficiary".
	42	+	9 A designated beneficiary is authorized to act on his or her own
	43	+	10 behalf unless the designated beneficiary is a minor or the
	44	+	11 designated beneficiary has been adjudicated to have a
	45	+	12 disability so that a guardian has been appointed. A designated
	46	+	13 representative acts in a fiduciary capacity to the designated
	47	+	14 beneficiary. A person or entity seeking to open an ABLE
	48	+	15 account on behalf of a designated beneficiary must provide
	49	+	16 certification, subject to penalties of perjury, of the basis
	50	+	17 for the person's or entity's authority to act as a designated
	51	+	18 representative and that there is no other person or entity
	52	+	19 with higher priority to establish the ABLE account under
	53	+	20 Section 529A of the Internal Revenue Code and federal
	54	+	21 regulations.
	55	+	22 "Disability certification" has the meaning given to that
	56	+	23 term under Section 529A of the Internal Revenue Code.
	57	+	24 "Eligible individual" has the meaning given to that term
	58	+	25 under Section 529A of the Internal Revenue Code.
	59	+	26 "Internal Revenue Code" means the federal Internal Revenue
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60	61
61		-	Code.
62		-	"Participation agreement" means an agreement to
63		-	participate in the ABLE account plan between a designated
64		-	beneficiary and the State, through its agencies and the State
65		-	Treasurer.
66		-	"Qualified disability expenses" has the meaning given to
67		-	that term under Section 529A of the Internal Revenue Code.
68		-	"Qualified withdrawal" or "qualified distribution" means a
69		-	withdrawal from an ABLE account to pay the qualified
70		-	disability expenses of the beneficiary of the account.
71		-	(b) Establishment of the ABLE Program. The "Achieving a
72		-	Better Life Experience" or "ABLE" account program is hereby
73		-	created and shall be administered by the State Treasurer. The
74		-	purpose of the ABLE program is to encourage and assist
75		-	individuals and families in saving private funds for the
76		-	purpose of supporting individuals with disabilities to
77		-	maintain health, independence, and quality of life, and to
78		-	provide secure funding for disability-related expenses on
79		-	behalf of designated beneficiaries with disabilities that will
80		-	supplement, but not supplant, benefits provided through
81		-	private insurance, federal and State medical and disability
82		-	insurance, the beneficiary's employment, and other sources.
83		-	Under the plan, a person or entity may make contributions to an
84		-	ABLE account to meet the qualified disability expenses of the
85		-	designated beneficiary of the account. The plan must be
86		-	operated as an accounts-type plan that permits saving persons
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89		-	to save for qualified disability expenses incurred by or on
90		-	behalf of an eligible individual.
91		-	(c) Promotion of the ABLE Program. The State Treasurer
92		-	shall promote awareness of the availability and advantages of
93		-	the ABLE account plan as a way to assist individuals and
94		-	families in saving private funds for the purpose of supporting
95		-	individuals with disabilities.
96		-	(d) Availability of the ABLE Program. An ABLE account may
97		-	be established under this Section for a designated beneficiary
98		-	who is a resident of Illinois, a resident of a contracting
99		-	state, or a resident of any other state.
100		-	Annual contributions to an ABLE account on behalf of a
101		-	beneficiary are subject to the requirements of subsection (b)
102		-	of Section 529A of the Internal Revenue Code. No person or
103		-	entity may make a contribution to an ABLE account if such a
104		-	contribution would result in the aggregate account balance of
105		-	an ABLE account exceeding the account balance limit authorized
106		-	under Section 529A of the Internal Revenue Code. The Treasurer
107		-	shall review the contribution limit at least annually. A
108		-	separate account must be maintained for each beneficiary for
109		-	whom contributions are made, and no more than one account
110		-	shall be established per beneficiary. If an ABLE account is
111		-	established for a designated beneficiary, no account
112		-	subsequently established for such beneficiary shall be treated
113		-	as an ABLE account. The preceding sentence shall not apply in
114		-	the case of an ABLE account established for purposes of a
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117		-	rollover as permitted under Sections 529 and 529A of the
118		-	Internal Revenue Code.
119		-	(e) Administration of the ABLE Program. The State
120		-	Treasurer shall administer the plan, including accepting and
121		-	processing applications, maintaining account records, making
122		-	payments, and undertaking any other necessary tasks to
123		-	administer the plan, including the appointment of an account
124		-	administrator. The State Treasurer may contract with one or
125		-	more third parties to carry out some or all of these
126		-	administrative duties, including, but not limited to,
127		-	providing investment management services, incentives, and
128		-	marketing the plan. The State Treasurer may enter into
129		-	agreements with other states to either allow Illinois
130		-	residents to participate in a plan operated by another state
131		-	or to allow residents of other states to participate in the
132		-	Illinois ABLE plan. The State Treasurer may require any
133		-	certifications that he or she deems necessary to implement the
134		-	program, including oaths or affirmations made under penalties
135		-	of perjury.
136		-	(f) Fees. The State Treasurer may establish fees to be
137		-	imposed on participants to cover the costs of administration,
138		-	recordkeeping, and investment management. The State Treasurer
139		-	must use his or her best efforts to keep these fees as low as
140		-	possible, consistent with efficient administration.
141		-	(g) The Illinois ABLE Accounts Administrative Fund. The
142		-	Illinois ABLE Accounts Administrative Fund is created as a
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	70	+	1 Code.
	71	+	2 "Participation agreement" means an agreement to
	72	+	3 participate in the ABLE account plan between a designated
	73	+	4 beneficiary and the State, through its agencies and the State
	74	+	5 Treasurer.
	75	+	6 "Qualified disability expenses" has the meaning given to
	76	+	7 that term under Section 529A of the Internal Revenue Code.
	77	+	8 "Qualified withdrawal" or "qualified distribution" means a
	78	+	9 withdrawal from an ABLE account to pay the qualified
	79	+	10 disability expenses of the beneficiary of the account.
	80	+	11 (b) Establishment of the ABLE Program. The "Achieving a
	81	+	12 Better Life Experience" or "ABLE" account program is hereby
	82	+	13 created and shall be administered by the State Treasurer. The
	83	+	14 purpose of the ABLE program is to encourage and assist
	84	+	15 individuals and families in saving private funds for the
	85	+	16 purpose of supporting individuals with disabilities to
	86	+	17 maintain health, independence, and quality of life, and to
	87	+	18 provide secure funding for disability-related expenses on
	88	+	19 behalf of designated beneficiaries with disabilities that will
	89	+	20 supplement, but not supplant, benefits provided through
	90	+	21 private insurance, federal and State medical and disability
	91	+	22 insurance, the beneficiary's employment, and other sources.
	92	+	23 Under the plan, a person or entity may make contributions to an
	93	+	24 ABLE account to meet the qualified disability expenses of the
	94	+	25 designated beneficiary of the account. The plan must be
	95	+	26 operated as an accounts-type plan that permits saving persons
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145		-	nonappropriated trust fund in the State treasury. The State
146		-	Treasurer shall use moneys in the Administrative Fund to cover
147		-	administrative expenses incurred under this Section. The
148		-	Administrative Fund may receive any grants or other moneys
149		-	designated for administrative purposes from the State, or any
150		-	unit of federal, state, or local government, or any other
151		-	person, firm, partnership, or corporation. Any interest
152		-	earnings that are attributable to moneys in the Administrative
153		-	Fund must be deposited into the Administrative Fund. Any fees
154		-	established by the State Treasurer to cover the costs of
155		-	administration, recordkeeping, and investment management shall
156		-	be deposited into the Administrative Fund.
157		-	Subject to appropriation, the State Treasurer may pay
158		-	administrative costs associated with the creation and
159		-	management of the plan until sufficient assets are available
160		-	in the Administrative Fund for that purpose.
161		-	(h) Privacy. Applications for accounts and other records
162		-	obtained or compiled by the Treasurer or the Treasurer's
163		-	agents reflecting , designated beneficiary information data,
164		-	account information data, or designated representative
165		-	information and data on beneficiaries of accounts are
166		-	confidential and exempt from disclosure under the Freedom of
167		-	Information Act.
168		-	(i) Investment Policy. The Treasurer shall prepare and
169		-	adopt a written statement of investment policy that includes a
170		-	risk management and oversight program which shall be reviewed
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173		-	annually and posted on the Treasurer's website prior to
174		-	implementation. The risk management and oversight program
175		-	shall be designed to ensure that an effective risk management
176		-	system is in place to monitor the risk levels of the ABLE plan,
177		-	to ensure that the risks taken are prudent and properly
178		-	managed, to provide an integrated process for overall risk
179		-	management, and to assess investment returns as well as risk
180		-	to determine if the risks taken are adequately compensated
181		-	compared to applicable performance benchmarks and standards.
182		-	To enhance the safety and liquidity of ABLE accounts, to
183		-	ensure the diversification of the investment portfolio of
184		-	accounts, and in an effort to keep investment dollars in the
185		-	State, the State Treasurer may make a percentage of each
186		-	account available for investment in participating financial
187		-	institutions doing business in the State, except that the
188		-	accounts may be invested without limit in investment options
189		-	from open-ended investment companies registered under Section
190		-	80a of the federal Investment Company Act of 1940. The State
191		-	Treasurer may contract with one or more third parties for
192		-	investment management, recordkeeping, or other services in
193		-	connection with investing the accounts.
194		-	(j) Investment restrictions. The State Treasurer shall
195		-	ensure that the plan meets the requirements for an ABLE
196		-	account under Section 529A of the Internal Revenue Code. The
197		-	State Treasurer may request a private letter ruling or rulings
198		-	from the Internal Revenue Service and must take any necessary
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201		-	steps to ensure that the plan qualifies under relevant
202		-	provisions of federal law. Notwithstanding the foregoing, any
203		-	determination by the Secretary of the Treasury of the United
204		-	States that an account was utilized to make non-qualified
205		-	distributions shall not result in an ABLE account being
206		-	disregarded as a resource.
207		-	(k) Contributions. A person or entity may make
208		-	contributions to an ABLE account on behalf of a beneficiary.
209		-	Contributions to an account made by persons or entities other
210		-	than the designated beneficiary become the property of the
211		-	designated beneficiary. Contributions to an account shall be
212		-	considered as a transfer of assets for fair market value. A
213		-	person or entity does not acquire an interest in an ABLE
214		-	account by making contributions to an account. A contribution
215		-	to any account for a beneficiary must be rejected if the
216		-	contribution would cause either the aggregate or annual
217		-	account balance of the account to exceed the limits imposed by
218		-	Section 529A of the Internal Revenue Code.
219		-	Any change in designated beneficiary must be done in a
220		-	manner consistent with Section 529A of the Internal Revenue
221		-	Code.
222		-	(l) Notice. Notice of any proposed amendments to the rules
223		-	and regulations shall be provided to all designated
224		-	beneficiaries or their designated representatives prior to
225		-	adoption. Amendments to rules and regulations shall apply only
226		-	to contributions made after the adoption of the amendment.
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	106	+	1 to save for qualified disability expenses incurred by or on
	107	+	2 behalf of an eligible individual.
	108	+	3 (c) Promotion of the ABLE Program. The State Treasurer
	109	+	4 shall promote awareness of the availability and advantages of
	110	+	5 the ABLE account plan as a way to assist individuals and
	111	+	6 families in saving private funds for the purpose of supporting
	112	+	7 individuals with disabilities.
	113	+	8 (d) Availability of the ABLE Program. An ABLE account may
	114	+	9 be established under this Section for a designated beneficiary
	115	+	10 who is a resident of Illinois, a resident of a contracting
	116	+	11 state, or a resident of any other state.
	117	+	12 Annual contributions to an ABLE account on behalf of a
	118	+	13 beneficiary are subject to the requirements of subsection (b)
	119	+	14 of Section 529A of the Internal Revenue Code. No person or
	120	+	15 entity may make a contribution to an ABLE account if such a
	121	+	16 contribution would result in the aggregate account balance of
	122	+	17 an ABLE account exceeding the account balance limit authorized
	123	+	18 under Section 529A of the Internal Revenue Code. The Treasurer
	124	+	19 shall review the contribution limit at least annually. A
	125	+	20 separate account must be maintained for each beneficiary for
	126	+	21 whom contributions are made, and no more than one account
	127	+	22 shall be established per beneficiary. If an ABLE account is
	128	+	23 established for a designated beneficiary, no account
	129	+	24 subsequently established for such beneficiary shall be treated
	130	+	25 as an ABLE account. The preceding sentence shall not apply in
	131	+	26 the case of an ABLE account established for purposes of a
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229		-	Amendments to this Section automatically amend the
230		-	participation agreement. Any amendments to the operating
231		-	procedures and policies of the plan shall automatically amend
232		-	the participation agreement after adoption by the State
233		-	Treasurer.
234		-	(m) Plan assets. All assets of the plan, including any
235		-	contributions to accounts, are held in trust for the exclusive
236		-	benefit of the designated beneficiary and shall be considered
237		-	spendthrift accounts exempt from all of the designated
238		-	beneficiary's creditors. The plan shall provide separate
239		-	accounting for each designated beneficiary sufficient to
240		-	satisfy the requirements of paragraph (3) of subsection (b) of
241		-	Section 529A of the Internal Revenue Code. Assets must be held
242		-	in either a state trust fund outside the State treasury, to be
243		-	known as the Illinois ABLE plan trust fund, or in accounts with
244		-	a third-party provider selected pursuant to this Section.
245		-	Amounts contributed to ABLE accounts shall not be commingled
246		-	with State funds and the State shall have no claim to or
247		-	against, or interest in, such funds.
248		-	Plan assets are not subject to claims by creditors of the
249		-	State and are not subject to appropriation by the State.
250		-	Payments from the Illinois ABLE account plan shall be made
251		-	under this Section.
252		-	The assets of ABLE accounts and their income may not be
253		-	used as security for a loan.
254		-	(n) Taxation. The assets of ABLE accounts and their income
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257		-	and operation shall be exempt from all taxation by the State of
258		-	Illinois and any of its subdivisions to the extent exempt from
259		-	federal income taxation. The accrued earnings on investments
260		-	in an ABLE account once disbursed on behalf of a designated
261		-	beneficiary shall be similarly exempt from all taxation by the
262		-	State of Illinois and its subdivisions to the extent exempt
263		-	from federal income taxation, so long as they are used for
264		-	qualified expenses.
265		-	Notwithstanding any other provision of law that requires
266		-	consideration of one or more financial circumstances of an
267		-	individual, for the purpose of determining eligibility to
268		-	receive, or the amount of, any assistance or benefit
269		-	authorized by such provision to be provided to or for the
270		-	benefit of such individual, any amount, including earnings
271		-	thereon, in the ABLE account of such individual, any
272		-	contributions to the ABLE account of the individual, and any
273		-	distribution for qualified disability expenses shall be
274		-	disregarded for such purpose with respect to any period during
275		-	which such individual maintains, makes contributions to, or
276		-	receives distributions from such ABLE account.
277		-	(o) Distributions. The designated beneficiary or the
278		-	designated representative of the designated beneficiary may
279		-	make a qualified distribution for the benefit of the
280		-	designated beneficiary. Qualified distributions shall be made
281		-	for qualified disability expenses allowed pursuant to Section
282		-	529A of the Internal Revenue Code. Qualified distributions
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285		-	must be withdrawn proportionally from contributions and
286		-	earnings in a designated beneficiary's account on the date of
287		-	distribution as provided in Section 529A of the Internal
288		-	Revenue Code. Unless prohibited by federal law, upon the death
289		-	of a designated beneficiary, proceeds from an account may be
290		-	transferred to the estate of a designated beneficiary, or to
291		-	an account for another eligible individual specified by the
292		-	designated beneficiary or the estate of the designated
293		-	beneficiary, or transferred pursuant to a payable on death
294		-	account agreement. A payable on death account agreement may be
295		-	executed by the designated beneficiary or a designated
296		-	representative who has been granted such power. Upon the death
297		-	of a designated beneficiary, prior to distribution of the
298		-	balance to the estate, account for another eligible
299		-	individual, or transfer pursuant to a payable on death account
300		-	agreement, the State Treasurer may require verification that
301		-	the funeral and burial expenses of the designated beneficiary
302		-	have been paid. An agency or instrumentality of the State may
303		-	not seek payment under subsection (f) of Section 529A of the
304		-	federal Internal Revenue Code from the account or its proceeds
305		-	for benefits provided to a designated beneficiary.
306		-	(p) Rules. The State Treasurer may adopt rules to carry
307		-	out the purposes of this Section. The State Treasurer shall
308		-	further have the power to issue peremptory rules necessary to
309		-	ensure that ABLE accounts meet all of the requirements for a
310		-	qualified state ABLE program under Section 529A of the
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	142	+	1 rollover as permitted under Sections 529 and 529A of the
	143	+	2 Internal Revenue Code.
	144	+	3 (e) Administration of the ABLE Program. The State
	145	+	4 Treasurer shall administer the plan, including accepting and
	146	+	5 processing applications, maintaining account records, making
	147	+	6 payments, and undertaking any other necessary tasks to
	148	+	7 administer the plan, including the appointment of an account
	149	+	8 administrator. The State Treasurer may contract with one or
	150	+	9 more third parties to carry out some or all of these
	151	+	10 administrative duties, including, but not limited to,
	152	+	11 providing investment management services, incentives, and
	153	+	12 marketing the plan. The State Treasurer may enter into
	154	+	13 agreements with other states to either allow Illinois
	155	+	14 residents to participate in a plan operated by another state
	156	+	15 or to allow residents of other states to participate in the
	157	+	16 Illinois ABLE plan. The State Treasurer may require any
	158	+	17 certifications that he or she deems necessary to implement the
	159	+	18 program, including oaths or affirmations made under penalties
	160	+	19 of perjury.
	161	+	20 (f) Fees. The State Treasurer may establish fees to be
	162	+	21 imposed on participants to cover the costs of administration,
	163	+	22 recordkeeping, and investment management. The State Treasurer
	164	+	23 must use his or her best efforts to keep these fees as low as
	165	+	24 possible, consistent with efficient administration.
	166	+	25 (g) The Illinois ABLE Accounts Administrative Fund. The
	167	+	26 Illinois ABLE Accounts Administrative Fund is created as a
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312	169
313		-	Internal Revenue Code and any regulations issued by the
314		-	Internal Revenue Service.
315		-	(q) Name. The ABLE Account Program may also be referred to
316		-	as the Senator Scott Bennett ABLE Program.
317		-	(Source: P.A. 101-329, eff. 8-9-19; 102-392, eff. 8-16-21;
318		-	102-1024, eff. 5-27-22.)
319		-	Section 99. Effective date. This Act takes effect upon
320		-	becoming law.
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	178	+	1 nonappropriated trust fund in the State treasury. The State
	179	+	2 Treasurer shall use moneys in the Administrative Fund to cover
	180	+	3 administrative expenses incurred under this Section. The
	181	+	4 Administrative Fund may receive any grants or other moneys
	182	+	5 designated for administrative purposes from the State, or any
	183	+	6 unit of federal, state, or local government, or any other
	184	+	7 person, firm, partnership, or corporation. Any interest
	185	+	8 earnings that are attributable to moneys in the Administrative
	186	+	9 Fund must be deposited into the Administrative Fund. Any fees
	187	+	10 established by the State Treasurer to cover the costs of
	188	+	11 administration, recordkeeping, and investment management shall
	189	+	12 be deposited into the Administrative Fund.
	190	+	13 Subject to appropriation, the State Treasurer may pay
	191	+	14 administrative costs associated with the creation and
	192	+	15 management of the plan until sufficient assets are available
	193	+	16 in the Administrative Fund for that purpose.
	194	+	17 (h) Privacy. Applications for accounts and other records
	195	+	18 obtained or compiled by the Treasurer or the Treasurer's
	196	+	19 agents reflecting , designated beneficiary information data,
	197	+	20 account information data, or designated representative
	198	+	21 information and data on beneficiaries of accounts are
	199	+	22 confidential and exempt from disclosure under the Freedom of
	200	+	23 Information Act.
	201	+	24 (i) Investment Policy. The Treasurer shall prepare and
	202	+	25 adopt a written statement of investment policy that includes a
	203	+	26 risk management and oversight program which shall be reviewed
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	214	+	1 annually and posted on the Treasurer's website prior to
	215	+	2 implementation. The risk management and oversight program
	216	+	3 shall be designed to ensure that an effective risk management
	217	+	4 system is in place to monitor the risk levels of the ABLE plan,
	218	+	5 to ensure that the risks taken are prudent and properly
	219	+	6 managed, to provide an integrated process for overall risk
	220	+	7 management, and to assess investment returns as well as risk
	221	+	8 to determine if the risks taken are adequately compensated
	222	+	9 compared to applicable performance benchmarks and standards.
	223	+	10 To enhance the safety and liquidity of ABLE accounts, to
	224	+	11 ensure the diversification of the investment portfolio of
	225	+	12 accounts, and in an effort to keep investment dollars in the
	226	+	13 State, the State Treasurer may make a percentage of each
	227	+	14 account available for investment in participating financial
	228	+	15 institutions doing business in the State, except that the
	229	+	16 accounts may be invested without limit in investment options
	230	+	17 from open-ended investment companies registered under Section
	231	+	18 80a of the federal Investment Company Act of 1940. The State
	232	+	19 Treasurer may contract with one or more third parties for
	233	+	20 investment management, recordkeeping, or other services in
	234	+	21 connection with investing the accounts.
	235	+	22 (j) Investment restrictions. The State Treasurer shall
	236	+	23 ensure that the plan meets the requirements for an ABLE
	237	+	24 account under Section 529A of the Internal Revenue Code. The
	238	+	25 State Treasurer may request a private letter ruling or rulings
	239	+	26 from the Internal Revenue Service and must take any necessary
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	250	+	1 steps to ensure that the plan qualifies under relevant
	251	+	2 provisions of federal law. Notwithstanding the foregoing, any
	252	+	3 determination by the Secretary of the Treasury of the United
	253	+	4 States that an account was utilized to make non-qualified
	254	+	5 distributions shall not result in an ABLE account being
	255	+	6 disregarded as a resource.
	256	+	7 (k) Contributions. A person or entity may make
	257	+	8 contributions to an ABLE account on behalf of a beneficiary.
	258	+	9 Contributions to an account made by persons or entities other
	259	+	10 than the designated beneficiary become the property of the
	260	+	11 designated beneficiary. Contributions to an account shall be
	261	+	12 considered as a transfer of assets for fair market value. A
	262	+	13 person or entity does not acquire an interest in an ABLE
	263	+	14 account by making contributions to an account. A contribution
	264	+	15 to any account for a beneficiary must be rejected if the
	265	+	16 contribution would cause either the aggregate or annual
	266	+	17 account balance of the account to exceed the limits imposed by
	267	+	18 Section 529A of the Internal Revenue Code.
	268	+	19 Any change in designated beneficiary must be done in a
	269	+	20 manner consistent with Section 529A of the Internal Revenue
	270	+	21 Code.
	271	+	22 (l) Notice. Notice of any proposed amendments to the rules
	272	+	23 and regulations shall be provided to all designated
	273	+	24 beneficiaries or their designated representatives prior to
	274	+	25 adoption. Amendments to rules and regulations shall apply only
	275	+	26 to contributions made after the adoption of the amendment.
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	286	+	1 Amendments to this Section automatically amend the
	287	+	2 participation agreement. Any amendments to the operating
	288	+	3 procedures and policies of the plan shall automatically amend
	289	+	4 the participation agreement after adoption by the State
	290	+	5 Treasurer.
	291	+	6 (m) Plan assets. All assets of the plan, including any
	292	+	7 contributions to accounts, are held in trust for the exclusive
	293	+	8 benefit of the designated beneficiary and shall be considered
	294	+	9 spendthrift accounts exempt from all of the designated
	295	+	10 beneficiary's creditors. The plan shall provide separate
	296	+	11 accounting for each designated beneficiary sufficient to
	297	+	12 satisfy the requirements of paragraph (3) of subsection (b) of
	298	+	13 Section 529A of the Internal Revenue Code. Assets must be held
	299	+	14 in either a state trust fund outside the State treasury, to be
	300	+	15 known as the Illinois ABLE plan trust fund, or in accounts with
	301	+	16 a third-party provider selected pursuant to this Section.
	302	+	17 Amounts contributed to ABLE accounts shall not be commingled
	303	+	18 with State funds and the State shall have no claim to or
	304	+	19 against, or interest in, such funds.
	305	+	20 Plan assets are not subject to claims by creditors of the
	306	+	21 State and are not subject to appropriation by the State.
	307	+	22 Payments from the Illinois ABLE account plan shall be made
	308	+	23 under this Section.
	309	+	24 The assets of ABLE accounts and their income may not be
	310	+	25 used as security for a loan.
	311	+	26 (n) Taxation. The assets of ABLE accounts and their income
	312	+
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	322	+	1 and operation shall be exempt from all taxation by the State of
	323	+	2 Illinois and any of its subdivisions to the extent exempt from
	324	+	3 federal income taxation. The accrued earnings on investments
	325	+	4 in an ABLE account once disbursed on behalf of a designated
	326	+	5 beneficiary shall be similarly exempt from all taxation by the
	327	+	6 State of Illinois and its subdivisions to the extent exempt
	328	+	7 from federal income taxation, so long as they are used for
	329	+	8 qualified expenses.
	330	+	9 Notwithstanding any other provision of law that requires
	331	+	10 consideration of one or more financial circumstances of an
	332	+	11 individual, for the purpose of determining eligibility to
	333	+	12 receive, or the amount of, any assistance or benefit
	334	+	13 authorized by such provision to be provided to or for the
	335	+	14 benefit of such individual, any amount, including earnings
	336	+	15 thereon, in the ABLE account of such individual, any
	337	+	16 contributions to the ABLE account of the individual, and any
	338	+	17 distribution for qualified disability expenses shall be
	339	+	18 disregarded for such purpose with respect to any period during
	340	+	19 which such individual maintains, makes contributions to, or
	341	+	20 receives distributions from such ABLE account.
	342	+	21 (o) Distributions. The designated beneficiary or the
	343	+	22 designated representative of the designated beneficiary may
	344	+	23 make a qualified distribution for the benefit of the
	345	+	24 designated beneficiary. Qualified distributions shall be made
	346	+	25 for qualified disability expenses allowed pursuant to Section
	347	+	26 529A of the Internal Revenue Code. Qualified distributions
	348	+
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	358	+	1 must be withdrawn proportionally from contributions and
	359	+	2 earnings in a designated beneficiary's account on the date of
	360	+	3 distribution as provided in Section 529A of the Internal
	361	+	4 Revenue Code. Unless prohibited by federal law, upon the death
	362	+	5 of a designated beneficiary, proceeds from an account may be
	363	+	6 transferred to the estate of a designated beneficiary, or to
	364	+	7 an account for another eligible individual specified by the
	365	+	8 designated beneficiary or the estate of the designated
	366	+	9 beneficiary, or transferred pursuant to a payable on death
	367	+	10 account agreement. A payable on death account agreement may be
	368	+	11 executed by the designated beneficiary or a designated
	369	+	12 representative who has been granted such power. Upon the death
	370	+	13 of a designated beneficiary, prior to distribution of the
	371	+	14 balance to the estate, account for another eligible
	372	+	15 individual, or transfer pursuant to a payable on death account
	373	+	16 agreement, the State Treasurer may require verification that
	374	+	17 the funeral and burial expenses of the designated beneficiary
	375	+	18 have been paid. An agency or instrumentality of the State may
	376	+	19 not seek payment under subsection (f) of Section 529A of the
	377	+	20 federal Internal Revenue Code from the account or its proceeds
	378	+	21 for benefits provided to a designated beneficiary.
	379	+	22 (p) Rules. The State Treasurer may adopt rules to carry
	380	+	23 out the purposes of this Section. The State Treasurer shall
	381	+	24 further have the power to issue peremptory rules necessary to
	382	+	25 ensure that ABLE accounts meet all of the requirements for a
	383	+	26 qualified state ABLE program under Section 529A of the
	384	+
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	394	+	1 Internal Revenue Code and any regulations issued by the
	395	+	2 Internal Revenue Service.
	396	+	3 (q) Name. The ABLE Account Program may also be referred to
	397	+	4 as the Senator Scott Bennett ABLE Program.
	398	+	5 (Source: P.A. 101-329, eff. 8-9-19; 102-392, eff. 8-16-21;
	399	+	6 102-1024, eff. 5-27-22.)
	400	+	7 Section 99. Effective date. This Act takes effect upon
	401	+	8 becoming law.
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