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Regular Session, 2014
HOUSE BILL NO. 833
BY REPRESENTATIVES FOIL, ANDERS, BARROW, BURFORD, COX, HARRIS,
HAVARD, HENSGENS, HILL, HOFFMANN, LEBAS, JAY MORRI S, POPE,
WHITNEY, PATRICK WILLIAMS, AND WILLMOTT
EXCEPTIONAL PERSONS: Creates the ABLE Account savings program for persons with
significant disabilities
AN ACT1
To enact R.S. 36:259(Y) and 802.24 and Chapter 19 of Title 46 of the Louisiana Revised2
Statutes of 1950, to be comprised of R.S. 46:1721 through 1740, relative to a savings3
program for persons with disabilities; to provide for definitions, findings, and4
purposes; to create the ABLE Account Program and the ABLE Account Authority5
to administer such program; to provide for composition, powers, and duties of the6
ABLE Account Authority; to provide for equivalency of certain aspects of the ABLE7
Account Program to aspects of the Louisiana Student Assistance and Revenue Trust8
Program; to establish program rules; to provide for qualified expenses; to provide for9
transfer of entities to the Department of Health and Hospitals for the purpose of10
conferring rulemaking authority; to provide for promulgation of rules; to provide for11
effectiveness contingent upon certain actions by congress; and to provide for related12
matters.13
Be it enacted by the Legislature of Louisiana:14
Section 1. R.S. 36:259(Y) and 802.24 are hereby enacted to read as follows:15
§259. Transfer of agencies and functions to Department of Health and Hospitals16
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Y. The ABLE Account Authority (R.S. 46:1725) is hereby placed within the1
Department of Health and Hospitals and shall exercise and perform its powers,2
duties, functions, and responsibilities in the manner provided in R.S. 36:802.24.3
* * *4
§802.24. Transfer; ABLE Account Authority5
The ABLE Account Authority, transferred by the provisions of R.S.6
36:259(Y), is transferred to and placed within the Department of Health and7
Hospitals and shall continue to be composed and selected as provided by law, and8
shall continue to exercise all of the powers, duties, functions, and responsibilities as9
provided in Chapter 19 of Title 46 of the Louisiana Revised Statutes of 1950.10
Section 2. Chapter 19 of Title 46 of the Louisiana Revised Statutes of 1950,11
comprised of R.S. 46:1721 through 1740, is hereby enacted to read as follows: 12
CHAPTER 19. ABLE ACCOUNT PROGRAM FOR13
DISABILITY-RELATED EXPENSES14
§1721. Short title15
This Chapter shall be known and may be cited as the "Achieving a Better Life16
Experience in Louisiana Act" or the "Louisiana ABLE Act".17
§1722. Definitions18
As used in this Chapter, the following terms have the meaning ascribed to19
them in this Section:20
(1) "ABLE Account" means a special savings account for financing of21
certain qualified expenses of persons with disabilities as specifically provided in this22
Chapter.23
(2) "ABLE Account Program" and "program" mean the special savings24
account program provided for in this Chapter.25
(3) "Authority" means the ABLE Account Authority created by this Chapter26
to administer the ABLE Account Program.27
(4) "Beneficiary" means the ABLE Account owner or the person entitled to28
apply the savings accrued in an ABLE Account, if not the account owner.29 HLS 14RS-1048 ENGROSSED
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(5) "Department" means the Department of Health and Hospitals.1
(6) "Person with a disability" means a person who meets either of the2
following criteria:3
(a) Has a medically determinable physical or mental impairment which4
results in marked and severe functional limitations, and which can be expected to5
result in death or which has lasted or can be expected to last for a continuous period6
of not less than twelve months.7
(b) Is blind.8
(7) "Qualified disability expense" means any expense made for the benefit9
of a person with a disability who is a designated beneficiary as defined and10
specifically provided for in rules and regulations of the authority. Qualified11
disability expenses may include, without limitation, the following:12
(a) Assistive technology and personal support service expenses for devices13
and services that facilitate maintenance of health, independence, and quality of life.14
(b) Education expenses, including tuition for preschool through15
post-secondary education, which shall include higher education expenses and16
expenses for books, supplies, and educational materials related to preschool and17
secondary education, tutors, and special education services.18
(c) Employment support expenses related to obtaining and maintaining19
employment, including job-related training, assistive technology, and personal20
assistance supports.21
(d) Health, prevention, and wellness expenses including but not limited to22
the following, provided that the equipment and services herein conform with any23
applicable rules and regulations of the Department of Health and Hospitals and the24
Louisiana Rehabilitation Services program of the Louisiana Workforce Commission:25
(i) Premiums for health insurance.26
(ii) Medical, vision, dental, and mental healthcare expenses.27
(iii) Habilitation and rehabilitation services.28
(iv) Durable medical equipment.29 HLS 14RS-1048 ENGROSSED
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(v) Therapy.1
(vi) Respite care.2
(vii) Long term services and supports.3
(viii) Nutritional management.4
(ix) Communication services and devices, adaptive equipment, and assistive5
technology.6
(x) Personal assistance.7
(e) Housing expenses for a primary residence, including rent, purchase of a8
primary residence or an interest in a primary residence, mortgage payments, real9
property taxes, and utility charges.10
(f) Miscellaneous expenses, including expenses for financial management11
and administrative services; legal fees; expenses for oversight; monitoring; home12
improvements, modifications, maintenance, and repairs at primary residence; and13
funeral and burial expenses.14
(g) Transportation expenses, including the use of mass transit, the purchase15
or modification of vehicles, and moving expenses.16
(h) Any other expenses which are consistent with the purposes of this17
Chapter, approved by the authority, and provided for in duly promulgated18
administrative rules.19
§1723. ABLE Account Program; creation; purpose; legislative intent20
A. The ABLE Account Program is hereby created and shall be administered21
by the ABLE Account Authority, referred to hereafter as "authority" to encourage22
and assist individuals and families in saving private funds for the purpose of23
supporting persons with disabilities in endeavors to maintain health, independence,24
and quality of life.25
B. The purposes of the ABLE Account Program, referred to hereafter as the26
"program", include all of the following:27
(1) To pay qualified disability expenses so that persons with disabilities may28
maintain health, independence, and quality of life.29 HLS 14RS-1048 ENGROSSED
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(2) To provide secure funding for disability-related expenses on behalf of1
designated beneficiaries with disabilities that will supplement, but not supplant,2
benefits provided through private insurance, the Medicaid program under title XIX3
of the Social Security Act, the supplemental security income program under title4
XVI of such Act, the beneficiary's employment, and other sources.5
C.(1) It is the intention of the legislature that the program shall be treated in6
the same manner as a qualified tuition program defined in Section 529 of the federal7
Internal Revenue Code, as amended. Any provision of this Chapter determined to8
be in conflict with any requirement of the code as applicable to a qualified tuition9
program shall be superseded by such code provision to the extent necessary to assure10
that the program continues to meet requirements for tax-advantaged status in11
accordance with the code's definition of a qualified tuition program.12
(2) Any requirement of this Chapter determined to be more restrictive than13
the requirements of the federal Internal Revenue Code as applicable to a qualified14
tuition program may be modified by the authority through rules promulgated in15
accordance with the Administrative Procedure Act to conform with code16
requirements.17
§1724. General program rules18
A. For purposes of any other provision of law which may pertain, in effect,19
to the program, except as otherwise provided in this Section, the program and the20
ABLE Accounts thereof shall be treated in the same manner as a qualified tuition21
program and the accounts provided for in the Louisiana Student Tuition Assistance22
and Revenue Trust Program law, R.S. 17:3091 et seq.23
B. Qualified disability expenses paid from an ABLE Account shall be treated24
in the same manner as qualified higher education expenses are treated.25
C. Maximum contributions to ABLE Accounts shall be no higher than the26
limit established by the state for the Louisiana Student Tuition Assistance and27
Revenue Trust Program, R.S. 17:3091 et seq.28 HLS 14RS-1048 ENGROSSED
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§1725. ABLE Account Authority; creation; powers1
A. There is hereby created the ABLE Account Authority, which shall have2
the powers enumerated in this Chapter.3
B.(1) The authority shall operate under the same laws, rules, and guidelines4
and with the same officer selection and employment policies as the Louisiana5
Student Financial Assistance Commission, R.S. 17:3021 et seq., except when6
inconsistent with this Chapter.7
(2) The membership of the authority shall consist of the following persons:8
(a) The members of the Louisiana Developmental Disabilities Council.9
(b) One member who is affiliated with Louisiana Rehabilitation Services or10
the Disability Navigator Program, or any successors of these, appointed by the11
executive director of the Louisiana Workforce Commission.12
(c) An officer of a bank in Louisiana who is a member of the Louisiana13
Bankers' Association and who is nominated by the association.14
(d) One member of the House of Representatives appointed by the speaker.15
(e) One member of the Senate appointed by the president.16
(f) The state treasurer who shall be an ex officio voting member of the17
authority.18
(3) The authority shall meet at least annually at the call of the chairman and19
at such other times as the chairman or the authority determines necessary. The20
authority may establish and delegate to an executive committee such duties and21
responsibilities as the authority determines appropriate.22
(4) A majority of the authority shall constitute a quorum of the authority, and23
the affirmative vote of a majority of the members present shall be necessary for any24
action taken by the authority. A majority of the executive committee shall constitute25
a quorum of the executive committee, and the affirmative vote of a majority of the26
executive committee members present shall be necessary for any action taken by the27
executive committee. No vacancy in the membership of the authority or the28 HLS 14RS-1048 ENGROSSED
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executive committee shall impair the rights of a quorum to exercise all rights and1
perform all duties of the authority or the executive committee respectively.2
C. In addition to any other powers conferred by this Chapter, the authority3
may do any of the following:4
(1) Purchase insurance from insurers licensed to do business in this state5
providing for coverage against any loss in connection with the authority's property,6
assets, or activities or to further ensure the value of ABLE Accounts.7
(2) Indemnify or purchase policies on behalf of members, officers, and8
employees of the authority from insurers licensed to do business in this state9
providing for coverage for any liability incurred in connection with any civil action,10
demand, or claim against a director, officer, or employee by reason of an act or11
omission by the director, officer, or employee that was not manifestly outside the12
scope of his employment or official duties or with malicious purpose, in bad faith,13
or in a wanton or reckless manner.14
(3) Make, execute, and deliver contracts, conveyances, and other instruments15
necessary to the exercise and discharge of the powers and duties of the authority.16
(4) Promote, advertise, and publicize the ABLE Account Program.17
(5) Solicit, accept, and expend gifts or grants.18
D.(1) The authority shall, by adoption of rules pursuant to the Administrative19
Procedure Act, provide for the following:20
(a) The establishment and imposition of reasonable residency requirements21
for beneficiaries of those applying to establish an ABLE Account.22
(b) The establishment and imposition of reasonable limits on the number of23
ABLE Account participants.24
(c) The establishment and imposition of limits on the amount which may25
accrue in an ABLE Account on behalf of any beneficiary.26
(d) The establishment and imposition of restrictions on the substitution of27
one beneficiary for another.28 HLS 14RS-1048 ENGROSSED
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(e) The establishment and imposition of restrictions on the transfer of1
ownership of ABLE Accounts.2
(f) The determination of the rate of interest to be paid on ABLE Accounts3
of record at the close of a calendar year, provided that such rate is not a negative rate4
and is approved by the state treasurer.5
(g) The disposition of abandoned accounts in compliance with state law.6
(h) The establishment and imposition of restrictions on investment of7
deposits in an ABLE Account and the interest earned thereon.8
(2) The authority may, through the exclusive means of adoption of rules9
pursuant to the Administrative Procedure Act, provide for the implementation and10
administration of this Chapter.11
§§1726 through 1740. [Reserved.]12
Section 2. The effectiveness of the provisions of Section 1 of this Act shall be13
contingent upon enactment of amendments to Section 529 of the federal Internal Revenue14
Code that establish tax-advantaged savings accounts for persons with disabilities as provided15
in the Achieving a Better Life Experience Act of 2013, or any Act of the United States16
Congress that is substantially similar thereto.17
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Foil HB No. 833
Abstract: Creates the ABLE Account savings program for persons with significant
disabilities.
Proposed law shall be known and may be cited as the "Achieving a Better Life Experience
in Louisiana Act" or the "Louisiana ABLE Act".
Proposed law creates the ABLE Account Program (program), to be administered by the
ABLE Account Authority (authority), to encourage and assist individuals and families in
saving private funds for the purpose of supporting persons with disabilities in endeavors to
maintain health, independence, and quality of life. Provides that the purposes of proposed
law include the following:
(1)To pay qualified disability expenses so that persons with disabilities may maintain
health, independence, and quality of life. HLS 14RS-1048 ENGROSSED
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(2)To provide secure funding for disability-related expenses on behalf of designated
beneficiaries with disabilities that will supplement, but not supplant, benefits
provided through private insurance, the Medicaid program, the supplemental security
income program, the beneficiary's employment, and other sources.
Proposed law defines "qualified disability expense" as any expense made for the benefit of
a person with a disability including, without limitation, the following:
(1)Assistive technology and personal support service expenses for devices and services
that facilitate maintenance of health, independence, and quality of life.
(2)Education expenses, including tuition for preschool through post-secondary
education, which shall include higher education expenses and expenses for books,
supplies, and educational materials related to preschool and secondary education,
tutors, and special education services.
(3)Employment support expenses related to obtaining and maintaining employment,
including job-related training, assistive technology, and personal assistance supports.
(4)Health, prevention, and wellness expenses including but not limited to the following,
provided that the equipment and services conform with any applicable rules and
regulations of the Dept. of Health and Hospitals and the La. Rehabilitation Services
program of the La. Workforce Commission:
(a)Premiums for health insurance.
(b)Medical, vision, dental, and mental healthcare expenses.
(c)Habilitation and rehabilitation services.
(d)Durable medical equipment.
(e)Therapy.
(f)Respite care.
(g)Long term services and supports.
(h)Nutritional management.
(i)Communication services and devices, adaptive equipment, and assistive
technology.
(j)Personal assistance.
(5)Housing expenses for a primary residence, including rent, purchase of a primary
residence or an interest in a primary residence, mortgage payments, real property
taxes, and utility charges.
(6)Miscellaneous expenses, including expenses for financial management and
administrative services; legal fees; expenses for oversight; monitoring; home
improvements, modifications, maintenance, and repairs at primary residence; and
funeral and burial expenses.
(7)Transportation expenses, including the use of mass transit, the purchase or
modification of vehicles, and moving expenses. HLS 14RS-1048 ENGROSSED
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(8)Any other expenses which are consistent with the purposes of proposed law,
approved by the authority, and provided for in rule.
Proposed law provides legislative intent that the program be treated in the same manner as
a qualified tuition program defined in Section 529 of the federal Internal Revenue Code.
Stipulates that any requirement of proposed law determined to be more restrictive than the
requirements of the Internal Revenue Code as applicable to a qualified tuition program may
be modified by the authority through rules promulgated in accordance with the APA to
conform with code requirements.
Proposed law provides that the program and the ABLE Accounts thereof shall be treated in
the same manner as a qualified tuition program and the accounts provided for in present law
relative to the Louisiana Student Tuition Assistance and Revenue Trust (START) program
(R.S. 17:3091 et seq.). Provides that qualified disability expenses paid from an ABLE
Account shall be treated in the same manner as qualified higher education expenses are
treated. Further provides that maximum contributions to ABLE Accounts shall be no higher
than the limit established by the state for the START program.
Proposed law creates the ABLE Account Authority as the administrator of the program;
provides that it shall operate under the same laws, rules, and guidelines and with the same
officer selection and employment policies as the START program; and provides that the
membership of the authority shall consist of the following persons:
(1)The members of the La. Developmental Disabilities Council.
(2)One member who is affiliated with La. Rehabilitation Services or the Disability
Navigator Program, or any successors of these, appointed by the executive director
of the La. Workforce Commission.
(3)An officer of a bank in La. who is a member of the La. Bankers' Association and
who is nominated by the association.
(4)One member of the House of Representatives appointed by the speaker.
(5)One member of the Senate appointed by the president.
(6)The state treasurer who shall be an ex officio voting member of the authority.
Proposed law provides for meetings, quorum, voting, and selection of an executive
committee of the authority. Provides that in addition to any other powers conferred by
proposed law, the authority may do any of the following:
(1)Purchase insurance from insurers licensed to do business in this state providing for
coverage against any loss in connection with the authority's property, assets, or
activities or to further ensure the value of ABLE Accounts.
(2)Indemnify or purchase policies on behalf of members, officers, and employees of the
authority from insurers licensed to do business in this state providing for coverage
for any liability incurred in connection with any civil action, demand, or claim
against a director, officer, or employee by reason of an act or omission by the
director, officer, or employee that was not manifestly outside the scope of his
employment or official duties or with malicious purpose, in bad faith, or in a wanton
or reckless manner.
(3)Make, execute, and deliver contracts, conveyances, and other instruments necessary
to the exercise and discharge of the powers and duties of the authority.
(4)Promote, advertise, and publicize the ABLE Account Program. HLS 14RS-1048 ENGROSSED
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(5)Solicit, accept, and expend gifts or grants.
Proposed law requires the authority, by adoption of rules in accordance with the APA, to
provide for the following:
(1)The establishment and imposition of reasonable residency requirements for
beneficiaries of those applying to establish an ABLE Account.
(2)The establishment and imposition of reasonable limits on the number of ABLE
Account participants.
(3)The establishment and imposition of limits on the amount which may accrue in an
ABLE Account on behalf of any beneficiary.
(4)The establishment and imposition of restrictions on the substitution of one
beneficiary for another.
(5)The establishment and imposition of restrictions on the transfer of ownership of
ABLE Accounts.
(6)The determination of the rate of interest to be paid on ABLE Accounts of record at
the close of a calendar year, provided that such rate is not a negative rate and is
approved by the state treasurer.
(7)The disposition of abandoned accounts in compliance with state law.
(8)The establishment and imposition of restrictions on investment of deposits in an
ABLE Account and the interest earned thereon.
Proposed law authorizes the authority, through the exclusive means of adoption of rules
pursuant to the APA, to provide for the implementation and administration of proposed law.
The effectiveness of proposed law is contingent upon enactment of amendments to §529 of
the federal Internal Revenue Code that establish tax-advantaged savings accounts for persons
with disabilities as provided in the Achieving a Better Life Experience Act of 2013, or any
Act of the U.S. Congress that is substantially similar.
(Adds R.S. 36:259(Y) and 802.24 and R.S. 46:1721-1740)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Health and Welfare to the
original bill.
1. Added a provision that effectiveness is contingent upon enactment of
amendments to §529 of the federal Internal Revenue Code that establish tax-
advantaged savings accounts for persons with disabilities as provided in the
Achieving a Better Life Experience Act of 2013, or any Act of the U.S. Congress
that is substantially similar.
2. Made a technical correction.