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ACT No. 93
Regular Session, 2014
HOUSE BILL NO. 833
BY REPRESENTATIVES FOIL, ANDERS, BARROW, BERTHEL OT, STUART
BISHOP, WESLEY BISHOP, BROADWATER, BURFORD, HENRY BURNS,
BURRELL, CARMODY, CARTER, CHAMPAGNE, COX, CROMER, GUI NN,
HARRIS, HARRISON, HAVARD, HAZEL, HENSGENS, HILL, HOFFMANN,
HONORE, HOWARD, HUNTER, KATRINA JACKSON, JOHNSON, LEBAS,
MILLER, JAY MORRIS, POPE, SCHEXNAYDER, ST. GERMAIN, THIERRY,
WHITNEY, PATRICK WILLIAMS, AND WILLMOTT AND SENATORS
ADLEY, ALARIO, ALLAIN, BROOME, BROWN, BUFFINGTON, CHABERT,
CLAITOR, CROWE, DORSEY-COLOMB, ERDEY, GUILLORY, JOHNS,
KOSTELKA, LAFLEUR, LONG, MARTINY, MILLS, MORRELL, MURRAY,
NEVERS, PEACOCK, RISER, GARY SMITH, JOHN SMITH, THOMPSON,
WALSWORTH, WARD, AND WHI TE
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 Tuition Assistance and8
Revenue Trust Program; to establish program rules; to provide for qualified9
expenses; to provide for transfer of entities to the Department of Health and10
Hospitals for the purpose of conferring rulemaking authority; to provide for11
promulgation of rules; to provide for effectiveness contingent upon certain actions12
by congress; and to provide for related 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
* * *17 ENROLLEDHB NO. 833
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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
(5) "Department" means the Department of Health and Hospitals.30 ENROLLEDHB NO. 833
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(6) "Person with a disability" means a person who meets either of the1
following criteria:2
(a) Has a medically determinable physical or mental impairment which3
results in marked and severe functional limitations, and which can be expected to4
result in death or which has lasted or can be expected to last for a continuous period5
of not less than twelve months.6
(b) Is blind.7
(7) "Qualified disability expense" means any expense made for the benefit8
of a person with a disability who is a designated beneficiary as defined and9
specifically provided for in rules and regulations of the authority. Qualified10
disability expenses may include, without limitation, the following:11
(a) Assistive technology and personal support service expenses for devices12
and services that facilitate maintenance of health, independence, and quality of life.13
(b) Education expenses, including tuition for preschool through14
postsecondary education, which shall include higher education expenses and15
expenses for books, supplies, and educational materials related to preschool and16
secondary education, tutors, and special education services.17
(c) Employment support expenses related to obtaining and maintaining18
employment, including job-related training, assistive technology, and personal19
assistance supports.20
(d) Health, prevention, and wellness expenses including but not limited to21
the following, provided that the equipment and services listed in this Subparagraph22
conform with any applicable rules and regulations of the Department of Health and23
Hospitals and the Louisiana Rehabilitation Services program of the Louisiana24
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
(v) Therapy.30 ENROLLEDHB NO. 833
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(vi) Respite care.1
(vii) Long-term services and supports.2
(viii) Nutritional management.3
(ix) Communication services and devices, adaptive equipment, and assistive4
technology.5
(x) Personal assistance.6
(e) Housing expenses for a primary residence, including rent, purchase of a7
primary residence or an interest in a primary residence, mortgage payments, real8
property taxes, and utility charges.9
(f) Miscellaneous expenses, including expenses for financial management10
and administrative services; legal fees; expenses for oversight; monitoring; home11
improvements, modifications, maintenance, and repairs at primary residence; and12
funeral and burial expenses.13
(g) Transportation expenses, including the use of mass transit, the purchase14
or modification of vehicles, and moving expenses.15
(h) Any other expenses which are consistent with the purposes of this16
Chapter, approved by the authority, and provided for in duly promulgated17
administrative rules.18
§1723. ABLE Account Program; creation; purpose; legislative intent19
A. The ABLE Account Program is hereby created and shall be administered20
by the ABLE Account Authority, referred to hereafter as "authority" to encourage21
and assist individuals and families in saving private funds for the purpose of22
supporting persons with disabilities in endeavors to maintain health, independence,23
and quality of life.24
B. The purposes of the ABLE Account Program, referred to hereafter as the25
"program", include all of the following:26
(1) To pay qualified disability expenses so that persons with disabilities may27
maintain health, independence, and quality of life.28
(2) To provide secure funding for disability-related expenses on behalf of29
designated beneficiaries with disabilities that will supplement, but not supplant,30 ENROLLEDHB NO. 833
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benefits provided through private insurance, the Medicaid program under Title XIX1
of the Social Security Act, the supplemental security income program under Title2
XVI of such Act, the beneficiary's employment, and other sources.3
C.(1) It is the intention of the legislature that the program shall be treated in4
the same manner as a qualified tuition program defined in Section 529 of the federal5
Internal Revenue Code, as amended. Any provision of this Chapter determined to6
be in conflict with any requirement of the code as applicable to a qualified tuition7
program shall be superseded by such code provision to the extent necessary to assure8
that the program continues to meet requirements for tax-advantaged status in9
accordance with the code's definition of a qualified tuition program.10
(2) Any requirement of this Chapter determined to be more restrictive than11
the requirements of the federal Internal Revenue Code as applicable to a qualified12
tuition program may be modified by the authority through rules promulgated in13
accordance with the Administrative Procedure Act to conform with code14
requirements.15
§1724. General program rules16
A. For purposes of any other provision of law which may pertain, in effect,17
to the program, except as otherwise provided in this Section, the program and the18
ABLE Accounts thereof shall be treated in the same manner as a qualified tuition19
program and the accounts provided for in the Louisiana Student Tuition Assistance20
and Revenue Trust Program law, R.S. 17:3091 et seq.21
B. Qualified disability expenses paid from an ABLE Account shall be treated22
in the same manner as qualified higher education expenses are treated.23
C. Maximum contributions to ABLE Accounts shall be no higher than the24
limit established by the state for the Louisiana Student Tuition Assistance and25
Revenue Trust Program, R.S. 17:3091 et seq.26
§1725. ABLE Account Authority; creation; powers27
A. There is hereby created the ABLE Account Authority, which shall have28
the powers enumerated in this Chapter.29 ENROLLEDHB NO. 833
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B.(1) The authority shall operate under the same laws, rules, and guidelines1
and with the same officer selection and employment policies as the Louisiana2
Student Financial Assistance Commission, R.S. 17:3021 et seq., except when3
inconsistent with this Chapter.4
(2) The membership of the authority shall consist of the following seven5
persons:6
(a) The chairperson of the Louisiana Developmental Disabilities Council or7
his designee.8
(b) The executive director of the governor's office of disability affairs or his9
designee.10
(c) One member who is affiliated with Louisiana Rehabilitation Services or11
the Disability Navigator Program, or any successors of these, appointed by the12
executive director of the Louisiana Workforce Commission.13
(d) An officer of a bank in Louisiana who is a member of the Louisiana14
Bankers Association and who is nominated by the association.15
(e) One member of the House of Representatives appointed by the speaker.16
(f) One member of the Senate appointed by the president.17
(g) The state treasurer who shall be an ex officio voting member of the18
authority.19
(3) The authority shall meet at least annually at the call of the chairman and20
at such other times as the chairman or the authority determines necessary. The21
authority may establish and delegate to an executive committee such duties and22
responsibilities as the authority determines appropriate.23
(4) A majority of the authority shall constitute a quorum of the authority, and24
the affirmative vote of a majority of the members present shall be necessary for any25
action taken by the authority. A majority of the executive committee shall constitute26
a quorum of the executive committee, and the affirmative vote of a majority of the27
executive committee members present shall be necessary for any action taken by the28
executive committee. No vacancy in the membership of the authority or the29 ENROLLEDHB NO. 833
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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
(e) The establishment and imposition of restrictions on the transfer of29
ownership of ABLE Accounts.30 ENROLLEDHB NO. 833
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(f) The determination of the rate of interest to be paid on ABLE Accounts1
of record at the close of a calendar year, provided that such rate is not a negative rate2
and is approved by the state treasurer.3
(g) The disposition of abandoned accounts in compliance with state law.4
(h) The establishment and imposition of restrictions on investment of5
deposits in an ABLE Account and the interest earned thereon.6
(2) The authority may, through the exclusive means of adoption of rules7
pursuant to the Administrative Procedure Act, provide for the implementation and8
administration of this Chapter.9
§§1726 through 1740. [Reserved.]10
Section 2. The effectiveness of the provisions of Section 1 of this Act shall be11
contingent upon enactment of amendments to Section 529 of the federal Internal Revenue12
Code that establish tax-advantaged savings accounts for persons with disabilities as provided13
in the Achieving a Better Life Experience Act of 2013, or any Act of the United States14
Congress that is substantially similar thereto.15
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: