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.
(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.
(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.
(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.