RÉSUMÉ DIGEST
ACT 411 (HB 598) 2015 Regular Session Foil
Existing law, known as the "Achieving a Better Life Experience in Louisiana Act" or
"Louisiana ABLE Act", establishes a governance framework and broad guidelines for a state
ABLE Account savings program (the "program") for persons with disabilities. New law
provides for implementation of the program in a manner consistent with federal law, the
"federal ABLE Act".
Existing law sets forth program purposes:
(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 that will supplement, but not supplant, certain other benefits. Prior law
specified that such beneficiaries have disabilities. New law deletes this qualification.
Existing law provides for the ABLE Account Authority, the "authority", to govern the
program and for authority membership. New law increases membership from seven to 11
members by adding the following:
(1)Executive director of The Arc of La. or his designee.
(2)Executive director of People First of La. or his designee.
(3)Person with a disability selected by the executive director of People First of La.
(4)Parent or family member of a person with a disability selected by the chairperson of
the La. Developmental Disabilities Council.
For purposes of organization of the executive branch of state government, prior law placed
the authority within the Dept. of Health and Hospitals. New law transfers it to the Dept. of
Education.
New law requires the executive director of The Arc of La. to ensure that the authority
members are seated on or before Sept. 1, 2015, and the authority's initial convening by Dec.
1, 2015. Authorizes the authority to enter into any agreement with the La. Tuition Trust
Authority as necessary to provide for combining the administration of the program and La.
Student Tuition Assistance and Revenue Trust (START) Program.
Existing law specifies aspects of the program that the authority shall provide for in
administrative rule. New law adds the following as program elements the authority shall
provide for in rule:
(1)Individual eligibility factors, including the age limits.
(2)Documentation and other standards relating to determination of eligibility.
(3)Number of ABLE Accounts per eligible individual.
(4)Maximum annual contributions to an ABLE Account.
(5)Separate accounting for each designated beneficiary.
(6)Limitation on the number of times per year a designated beneficiary may direct the
investment of contributions.
(7)Prohibition on pledging an ABLE Account as security for a loan.
(8)Safeguards to prevent contributions in excess of federal limits.
(9)Types and categories of qualified disability expenses. (10)Prevention of fraud and abuse.
New law requires the state treasurer to invest funds in ABLE Accounts in the same manner
as monies deposited in START Program accounts.
New law provides that for the purpose of determining eligibility to receive any federal
means-tested assistance (such as Medicaid, Supplemental Security Income, Supplemental
Nutrition Assistance Program benefits, etc.), the following amounts shall be disregarded for
an ABLE Account beneficiary:
(1)Any amount, including earnings thereon, in the ABLE Account.
(2)Any contributions to the ABLE Account.
(3)Any distribution from the ABLE Account for a qualified disability expense.
New law provides that for tax years beginning on and after Jan. 1, 2016, amounts deposited
in an ABLE Account on behalf of any designated beneficiary may be excluded from tax table
income for purposes of La. income tax if authorized by applicable provisions of existing law
(R.S. 47:293(9)(a)).
Effective upon signature of governor (July 1, 2015).
(Amends R.S. 36:802.24 and R.S. 46:1722(1), (2), and (7)(intro. para.) and (h), 1723, and
1725(B)(2); Adds R.S. 17:3093.1, R.S. 36:651(T)(6), and R.S. 46:1722(8) and (9) and 1726-
1730; Repeals R.S. 36:259(Y) and R.S. 46:1722(4)-(6), 1724, and 1725(D))