Wisconsin Senate Bill SB122

Wisconsin 2023-2024 Regular Session

• Introduced: 3/8/23
• Refer: 3/8/23
• Report Pass: 3/30/23
• Refer: 6/7/23
• Engrossed: 6/7/23
• Refer: 10/19/23
• Failed: 4/15/24

Caption

Requiring the Department of Financial Institutions to implement a section 529A ABLE savings account program and granting rule-making authority. (FE)

Impact

The introduction of SB122 is expected to significantly enhance financial planning options for individuals with disabilities by allowing them more control over savings without jeopardizing other benefits they may receive. The program aims to help beneficiaries save for various expenses related to their disability, which could positively impact their quality of life. By providing a state-run mechanism for these accounts, the bill aims to keep residents' funds within Wisconsin, thus fostering local economic activity and support.

Summary

Senate Bill 122 mandates the Department of Financial Institutions (DFI) to implement an ABLE (Achieving a Better Life Experience) savings account program in accordance with federal law, specifically section 529A of the Internal Revenue Code. This program allows individuals with disabilities to establish tax-exempt savings accounts to cover qualified expenses such as education, housing, and transportation. Until now, while these accounts could be opened in other states, Wisconsin residents have lacked a state-sanctioned ABLE program, limiting their ability to benefit from associated tax advantages.

Contention

During discussions surrounding SB122, certain concerns were raised regarding the administration and implementation of the ABLE program, especially in ensuring that it is accessible to all eligible individuals. Critics voiced the importance of monitoring how effectively DFI would manage the program and whether adequate resources would be allocated to promote awareness and understanding among potential beneficiaries. Additionally, some stakeholders emphasized the need for transparency relating to the performance and cost-effectiveness of the program, ensuring that the financial institutions involved are capable of delivering services tailored to the unique needs of people with disabilities.