EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0354*
HOUSE BILL 354
O3, J1 3lr1647
HB 431/16 – HGO CF 3lr1646
By: Delegate Chang
Introduced and read first time: January 26, 2023
Assigned to: Health and Government Operations
A BILL ENTITLED
AN ACT concerning 1
Maryland Achieving a Better Life Experience (ABLE) Program – Account 2
Establishment – Procedures 3
FOR the purpose of establishing certain procedures regarding the persons who may 4
establish or receive distributions from an ABLE account in the Maryland ABLE 5
Program for a certain eligible individual; requiring the Maryland 529 Board to adopt 6
certain procedures regarding the establishment and operation of an ABLE account 7
by a person other than a certain designated beneficiary; and generally relating to the 8
Maryland ABLE Program. 9
BY repealing and reenacting, with amendments, 10
Article – Education 11
Section 18–19C–01, 18–19C–02(d), and 18–19C–04 12
Annotated Code of Maryland 13
(2022 Replacement Volume) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Education 17
18–19C–01. 18
(a) In this subtitle the following words have the meanings indicated. 19
(b) “ABLE account” means an account described under § 529A(e) of the Internal 20
Revenue Code. 21
(c) “ABLE account contributor” means an individual who contributes money to 22
an ABLE account described under § 529A(e) of the Internal Revenue Code. 23
2 HOUSE BILL 354
(d) “ABLE account holder” means an individual who has established an account 1
described under § 529A(e) of the Internal Revenue Code and is the designated beneficiary 2
of the account. 3
(e) “Board” means the Maryland 529 Board established under § 18–1904 of this 4
title. 5
(f) “Designated beneficiary” means an individual described in § 529A(e) of the 6
Internal Revenue Code. 7
(g) “ELIGIBLE INDIVIDUAL ” MEANS AN INDIVIDUAL DESCRIBED IN § 8
529A(E) OF THE INTERNAL REVENUE CODE. 9
(H) “Maryland ABLE Program” means a qualified ABLE program described in § 10
529A(b) of the Internal Revenue Code. 11
[(h)] (I) “Qualified disability expenses” means expenses described in § 529A(e) 12
of the Internal Revenue Code. 13
18–19C–02. 14
(d) (1) The Board shall adopt procedures relating to: 15
(i) Enrollment for participation in the Maryland ABLE Program; 16
[and] 17
(ii) Start–up costs incurred by the State for the development of the 18
Maryland ABLE Program with these costs to be reimbursed to the State by the Maryland 19
ABLE Program; AND 20
(III) THE ESTABLISHMENT AND OPERATION OF AN ABLE 21
ACCOUNT BY A PERSON OTHER TH AN A DESIGNATED BENE FICIARY AS DESCRIBED IN 22
§ 18–19C–04 OF THIS SUBTITLE . 23
(2) The Board shall adopt any other procedures that the Board considers 24
necessary to carry out the provisions of this subtitle. 25
18–19C–04. 26
(a) (1) An eligible individual[, as defined in § 529A(e) of the Internal Revenue 27
Code,] may participate in and benefit from the Maryland ABLE Program. 28
(2) AN ABLE ACCOUNT MAY BE ESTAB LISHED ONLY FOR AN 29
ELIGIBLE INDIVIDUAL BY: 30
(I) THE ELIGIBLE INDIVIDU AL; 31 HOUSE BILL 354 3
(II) A PERSON SELECTED BY T HE ELIGIBLE INDIVIDU AL; OR 1
(III) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION A ND 2
EXCEPT AS PROVIDED I N PARAGRAPH (4) OF THIS SUBSECTION , IF AN ELIGIBLE 3
INDIVIDUAL, WHETHER A MINOR OR A N ADULT, IS UNABLE TO ESTABLI SH AN ABLE 4
ACCOUNT: 5
1. THE ELIGIBLE INDIVIDU AL’S AGENT UNDER A POWE R 6
OF ATTORNEY ; OR 7
2. IF THE ELIGIBLE INDIV IDUAL DOES NOT HAVE A 8
POWER OF ATTORNEY , IN THE FOLLOWING ORD ER, THE ELIGIBLE INDIVID UAL’S: 9
A. CONSERVATOR OR LEGAL GUARDIAN; 10
B. SPOUSE; 11
C. PARENT; 12
D. SIBLING; 13
E. GRANDPARENT ; OR 14
F. REPRESENTATIVE PAYEE APPOINTED FOR THE 15
ELIGIBLE INDIVIDUAL BY THE SOCIAL SECURITY ADMINISTRATION . 16
(3) THE BOARD MAY ACCEPT A CE RTIFICATION MADE UND ER THE 17
PENALTIES OF PERJURY FROM THE PERSO N SEEKING TO ESTABLI SH AN ABLE 18
ACCOUNT THAT INDICAT ES: 19
(I) THE BASIS OF THE PERS ON’S AUTHORITY TO ESTAB LISH 20
THE ABLE ACCOUNT; AND 21
(II) THERE IS NO OTHER PER SON WITH A HIGHER PR IORITY TO 22
ESTABLISH THE ABLE ACCOUNT UNDER PARAGR APH (2)(III) OF THIS SUBSECTION. 23
(4) THE FOLLOWING INDIVID UALS MAY NOT ESTABLI SH AN ABLE 24
ACCOUNT ON BEHALF OF AN ELIGIBLE INDIVIDU AL: 25
(I) A MINOR; 26
4 HOUSE BILL 354
(II) AN INDIVIDUAL AGAINST WHOM THE ELIGIBLE IN DIVIDUAL 1
HAS OBTAINED A PEACE OR PROTECTIVE ORDER ; 2
(III) AN INDIVIDUAL WHO HAS B EEN HELD CIVILLY OR 3
CRIMINALLY LIABLE FO R FINANCIAL EXPLOITA TION UNDER TITLE 13, SUBTITLE 6 4
OF THE ESTATES AND TRUSTS ARTICLE; OR 5
(IV) AN INDIVIDUAL WHO IS THE SUBJECT OF A CIV IL OR 6
CRIMINAL ORDER PROHI BITING CONTACT WITH THE ELIGIBLE INDIVIDUAL. 7
(b) [Distributions] SUBJECT TO THE PROVIS IONS OF § 529A OF THE 8
INTERNAL REVENUE CODE, DISTRIBUTIONS shall be requested by the designated 9
beneficiary [subject to the provisions of § 529A of the Internal Revenue Code] OR THE 10
PERSON AUTHORIZ ED TO ESTABLISH THE ABLE ACCOUNT UNDER SUBSEC TION (A) 11
OF THIS SECTION . 12
(C) THE BOARD MAY ADOPT REGUL ATIONS TO CARRY OUT THIS SECTION. 13
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 14
October 1, 2023. 15