Maryland 2023 Regular Session

Maryland House Bill HB354 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4		[Brackets] indicate matter deleted from existing law.
5		-	Underlining indicates amendments to bill.
6		-	Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7		-	amendment.
8	5		hb0354
9	6
10	7		HOUSE BILL 354
11	8		O3, J1 3lr1647
12		-	HB 431/16 – HGO CF SB 343
13		-	By: Delegate Chang Delegates Chang, Pena–Melnyk, Cullison, Alston, Bagnall,
14		-	Bhandari, Chisholm, Guzzone, Hill, Hutchinson, S. Johnson, Kaiser, Kerr,
15		-	Kipke, R. Lewis, Lopez, Martinez, M. Morgan, Reilly, Rosenberg, Szeliga,
16		-	Taveras, White, and Woods
	9	+	HB 431/16 – HGO CF 3lr1646
	10	+	By: Delegate Chang
17	11		Introduced and read first time: January 26, 2023
18	12		Assigned to: Health and Government Operations
19		-	Committee Report: Favorable with amendments
20		-	House action: Adopted
21		-	Read second time: March 21, 2023
22	13
23		-	~~CHAPTER ______~~
	14	+	A BILL ENTITLED
24	15
25	16		AN ACT concerning 1
26	17
27	18		Maryland Achieving a Better Life Experience (ABLE) Program – Account 2
28	19		Establishment – Procedures 3
29	20
30	21		FOR the purpose of establishing certain procedures regarding the persons who may 4
31	22		establish or receive distributions from an ABLE account in the Maryland ABLE 5
32	23		Program for a certain eligible individual; requiring the Maryland 529 Board to adopt 6
33	24		certain procedures regarding the establishment and operation of an ABLE account 7
34	25		by a person other than a certain designated beneficiary; and generally relating to the 8
35	26		Maryland ABLE Program. 9
36	27
37	28		BY repealing and reenacting, with amendments, 10
38	29		Article – Education 11
39	30		Section 18–19C–01, 18–19C–02(d), and 18–19C–04 12
40	31		Annotated Code of Maryland 13
41	32		(2022 Replacement Volume) 14
42	33
43	34		SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
44	35		That the Laws of Maryland read as follows: 16
45	36
46	37		Article – Education 17
47	38
48		-	18–19C–01. 18 2 HOUSE BILL 354
	39	+	18–19C–01. 18
	40	+
	41	+	(a) In this subtitle the following words have the meanings indicated. 19
	42	+
	43	+	(b) “ABLE account” means an account described under § 529A(e) of the Internal 20
	44	+	Revenue Code. 21
	45	+
	46	+	(c) “ABLE account contributor” means an individual who contributes money to 22
	47	+	an ABLE account described under § 529A(e) of the Internal Revenue Code. 23
	48	+	2 HOUSE BILL 354
	49	+
	50	+
	51	+	(d) “ABLE account holder” means an individual who has established an account 1
	52	+	described under § 529A(e) of the Internal Revenue Code and is the designated beneficiary 2
	53	+	of the account. 3
	54	+
	55	+	(e) “Board” means the Maryland 529 Board established under § 18–1904 of this 4
	56	+	title. 5
	57	+
	58	+	(f) “Designated beneficiary” means an individual described in § 529A(e) of the 6
	59	+	Internal Revenue Code. 7
	60	+
	61	+	(g) “ELIGIBLE INDIVIDUAL ” MEANS AN INDIVIDUAL DESCRIBED IN § 8
	62	+	529A(E) OF THE INTERNAL REVENUE CODE. 9
	63	+
	64	+	(H) “Maryland ABLE Program” means a qualified ABLE program described in § 10
	65	+	529A(b) of the Internal Revenue Code. 11
	66	+
	67	+	[(h)] (I) “Qualified disability expenses” means expenses described in § 529A(e) 12
	68	+	of the Internal Revenue Code. 13
	69	+
	70	+	18–19C–02. 14
	71	+
	72	+	(d) (1) The Board shall adopt procedures relating to: 15
	73	+
	74	+	(i) Enrollment for participation in the Maryland ABLE Program; 16
	75	+	[and] 17
	76	+
	77	+	(ii) Start–up costs incurred by the State for the development of the 18
	78	+	Maryland ABLE Program with these costs to be reimbursed to the State by the Maryland 19
	79	+	ABLE Program; AND 20
	80	+
	81	+	(III) THE ESTABLISHMENT AND OPERATION OF AN ABLE 21
	82	+	ACCOUNT BY A PERSON OTHER TH AN A DESIGNATED BENE FICIARY AS DESCRIBED IN 22
	83	+	§ 18–19C–04 OF THIS SUBTITLE . 23
	84	+
	85	+	(2) The Board shall adopt any other procedures that the Board considers 24
	86	+	necessary to carry out the provisions of this subtitle. 25
	87	+
	88	+	18–19C–04. 26
	89	+
	90	+	(a) (1) An eligible individual[, as defined in § 529A(e) of the Internal Revenue 27
	91	+	Code,] may participate in and benefit from the Maryland ABLE Program. 28
	92	+
	93	+	(2) AN ABLE ACCOUNT MAY BE ESTAB LISHED ONLY FOR AN 29
	94	+	ELIGIBLE INDIVIDUAL BY: 30
	95	+
	96	+	(I) THE ELIGIBLE INDIVIDU AL; 31 HOUSE BILL 354 3
49	97
50	98
51	99
52		-	(a) ~~In this subtitle the following words have the meanings indicated.~~ 1
	100	+	(II) A PERSON SELECTED BY T HE ELIGIBLE INDIVIDU AL; OR 1
53	101
54		-	(b) “ABLE account” means an account described under § 529A(e) of the Internal 2
55		-	Revenue Code. 3
	102	+	(III) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION A ND 2
	103	+	EXCEPT AS PROVIDED I N PARAGRAPH (4) OF THIS SUBSECTION , IF AN ELIGIBLE 3
	104	+	INDIVIDUAL, WHETHER A MINOR OR A N ADULT, IS UNABLE TO ESTABLI SH AN ABLE 4
	105	+	ACCOUNT: 5
56	106
57		-	~~(c) “ABLE~~ ~~account contributor”~~ ~~means an individual who contributes money to 4~~
58		-	~~an ABLE account described under § 529A(e)~~ of ~~the Internal Revenue Code.~~ 5
	107	+	1. THE ELIGIBLE INDIVIDU AL’S AGENT UNDER A POWE R 6
	108	+	OF ATTORNEY ; OR 7
59	109
60		-	(d) “ABLE account holder” means an individual who has established an account 6
61		-	described under § 529A(e) of the Internal Revenue Code and is the designated beneficiary 7
62		-	of the account. 8
	110	+	2. IF THE ELIGIBLE INDIV IDUAL DOES NOT HAVE A 8
	111	+	POWER OF ATTORNEY , IN THE FOLLOWING ORD ER, THE ELIGIBLE INDIVID UAL’S: 9
63	112
64		-	(e) “Board” means the Maryland 529 Board established under § 18–1904 of this 9
65		-	title. 10
	113	+	A. CONSERVATOR OR LEGAL GUARDIAN; 10
66	114
67		-	(f) “Designated beneficiary” means an individual described in § 529A(e) of the 11
68		-	Internal Revenue Code. 12
	115	+	B. SPOUSE; 11
69	116
70		-	(g) “ELIGIBLE INDIVIDUAL ” MEANS AN INDIVIDUAL DESCRIBED IN § 13
71		-	529A(E) OF THE INTERNAL REVENUE CODE. 14
	117	+	C. PARENT; 12
72	118
73		-	(H) “Maryland ABLE Program” means a qualified ABLE program described in § 15
74		-	529A(b) of the Internal Revenue Code. 16
	119	+	D. SIBLING; 13
75	120
76		-	[(h)] (I) “Qualified disability expenses” means expenses described in § 529A(e) 17
77		-	of the Internal Revenue Code. 18
	121	+	E. GRANDPARENT ; OR 14
78	122
79		-	18–19C–02. 19
	123	+	F. REPRESENTATIVE PAYEE APPOINTED FOR THE 15
	124	+	ELIGIBLE INDIVIDUAL BY THE SOCIAL SECURITY ADMINISTRATION . 16
80	125
81		-	(d) (1) The Board shall adopt procedures relating to: 20
	126	+	(3) THE BOARD MAY ACCEPT A CE RTIFICATION MADE UND ER THE 17
	127	+	PENALTIES OF PERJURY FROM THE PERSO N SEEKING TO ESTABLI SH AN ABLE 18
	128	+	ACCOUNT THAT INDICAT ES: 19
82	129
83		-	(i) ~~Enrollment for participation in~~ the ~~Maryland ABLE Program;~~ 21
84		-	[and~~] 22~~
	130	+	(I) THE BASIS OF THE PERS ON’S AUTHORITY TO ESTAB LISH 20
	131	+	THE ABLE ACCOUNT; AND 21
85	132
86		-	(ii) Start–up costs incurred by the State for the development of the 23
87		-	Maryland ABLE Program with these costs to be reimbursed to the State by the Maryland 24
88		-	ABLE Program; AND 25
	133	+	(II) THERE IS NO OTHER PER SON WITH A HIGHER PR IORITY TO 22
	134	+	ESTABLISH THE ABLE ACCOUNT UNDER PARAGR APH (2)(III) OF THIS SUBSECTION. 23
89	135
90		-	(III) THE ESTABLISHMENT AND OPERATION OF AN ABLE 26
91		-	ACCOUNT BY A PERSON OTHER THAN A DESIGNA TED BENEFICIARY AS D ESCRIBED IN 27
92		-	§ 18–19C–04 OF THIS SUBTITLE . 28
	136	+	(4) THE FOLLOWING INDIVID UALS MAY NOT ESTABLI SH AN ABLE 24
	137	+	ACCOUNT ON BEHALF OF AN ELIGIBLE INDIVIDU AL: 25
93	138
94		-	(2) The Board shall adopt any other procedures that the Board considers 29
95		-	necessary to carry out the provisions of this subtitle. 30
96		-	HOUSE BILL 354 3
	139	+	(I) A MINOR; 26
	140	+	4 HOUSE BILL 354
97	141
98	142
99		-	18–19C–04. 1
	143	+	(II) AN INDIVIDUAL AGAINST WHOM THE ELIGIBLE IN DIVIDUAL 1
	144	+	HAS OBTAINED A PEACE OR PROTECTIVE ORDER ; 2
100	145
101		-	(a) (1) An eligible individual[, as defined in § 529A(e) of the Internal Revenue 2
102		-	Code,] may participate in and benefit from the Maryland ABLE Program. 3
	146	+	(III) AN INDIVIDUAL WHO HAS B EEN HELD CIVILLY OR 3
	147	+	CRIMINALLY LIABLE FO R FINANCIAL EXPLOITA TION UNDER TITLE 13, SUBTITLE 6 4
	148	+	OF THE ESTATES AND TRUSTS ARTICLE; OR 5
103	149
104		-	(2) AN ~~ABLE ACCOUNT MAY BE ESTAB LISHED ONLY FOR AN 4~~
105		-	ELIGIBLE INDIVIDUAL ~~BY:~~ 5
	150	+	(IV) AN INDIVIDUAL WHO IS THE SUBJECT OF A CIV IL OR 6
	151	+	CRIMINAL ORDER PROHI BITING CONTACT WITH THE ELIGIBLE INDIVIDUAL. 7
106	152
107		-	(I) THE ELIGIBLE INDIVIDU AL; 6
	153	+	(b) [Distributions] SUBJECT TO THE PROVIS IONS OF § 529A OF THE 8
	154	+	INTERNAL REVENUE CODE, DISTRIBUTIONS shall be requested by the designated 9
	155	+	beneficiary [subject to the provisions of § 529A of the Internal Revenue Code] OR THE 10
	156	+	PERSON AUTHORIZ ED TO ESTABLISH THE ABLE ACCOUNT UNDER SUBSEC TION (A) 11
	157	+	OF THIS SECTION . 12
108	158
109		-	(II) ~~A PERSON SELECTED BY T HE ELIGIBLE INDIVIDU AL;~~ ~~OR 7~~
	159	+	(C) THE BOARD MAY ADOPT REGUL ATIONS TO CARRY OUT THIS SECTION. 13
110	160
111		-	(III) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION A ND 8
112		-	EXCEPT AS PROVIDED I N PARAGRAPH (4) OF THIS SUBSECTION , IF AN ELIGIBLE 9
113		-	INDIVIDUAL, WHETHER A MINOR OR A N ADULT, IS UNABLE TO ESTABLI SH AN ABLE 10
114		-	ACCOUNT: 11
	161	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 14
	162	+	October 1, 2023. 15
115	163
116		-	1. THE ELIGIBLE INDIVIDU AL’S AGENT UNDER A POWE R 12
117		-	OF ATTORNEY ; OR 13
118		-
119		-	2. IF THE ELIGIBLE INDIV IDUAL DOES NOT HAVE A 14
120		-	POWER OF ATTORNEY , IN THE FOLLOWING ORD ER, THE ELIGIBLE IND IVIDUAL’S: 15
121		-
122		-	A. CONSERVATOR OR LEGAL GUARDIAN; 16
123		-
124		-	B. SPOUSE; 17
125		-
126		-	C. PARENT; 18
127		-
128		-	D. SIBLING; 19
129		-
130		-	E. GRANDPARENT ; OR 20
131		-
132		-	F. REPRESENTATIVE PAYEE APPOINTED FOR THE 21
133		-	ELIGIBLE INDIVIDUAL BY THE SOCIAL SECURITY ADMINISTRATION . 22
134		-
135		-	(3) THE BOARD MAY ACCEPT A CERTIFICATI ON MADE UNDER THE 23
136		-	PENALTIES OF PERJURY FROM THE PERSON SEEK ING TO ESTABLISH AN ABLE 24
137		-	ACCOUNT THAT INDICAT ES: 25
138		-
139		-	(I) THE BASIS OF THE PERS ON’S AUTHORITY TO ESTAB LISH 26
140		-	THE ABLE ACCOUNT; AND 27
141		-
142		-	(II) THERE IS NO OTHER PER SON WITH A HIGHER P RIORITY TO 28
143		-	ESTABLISH THE ABLE ACCOUNT UNDER PARAGR APH (2)(III) OF THIS SUBSECTION . 29 4 HOUSE BILL 354
144		-
145		-
146		-
147		-	(4) THE FOLLOWING INDIVID UALS MAY NOT ESTABLI SH AN ABLE 1
148		-	ACCOUNT ON BEHALF OF AN ELIGIBLE INDIVIDU AL: 2
149		-
150		-	(I) A MINOR; 3
151		-
152		-	(II) AN INDIVIDUAL AGAINST WHOM THE ELIGIBLE IN DIVIDUAL 4
153		-	HAS OBTAINED A PEACE OR PROTECTIVE ORDER ; 5
154		-
155		-	(III) AN INDIVIDUAL WHO HAS BEEN HELD CIVILLY OR 6
156		-	CRIMINALLY LIABLE FO R FINANCIAL EXPLOITA TION UNDER TITLE 13, SUBTITLE 6 7
157		-	OF THE ESTATES AND TRUSTS ARTICLE; OR 8
158		-
159		-	(IV) AN INDIVIDUAL WHO IS THE SUBJECT OF A CIV IL OR 9
160		-	CRIMINAL ORDER PROHI BITING CONTACT WITH THE ELIGIBLE INDIVID UAL. 10
161		-
162		-	(b) [Distributions] SUBJECT TO THE PROVIS IONS OF § 529A OF THE 11
163		-	INTERNAL REVENUE CODE, DISTRIBUTIONS shall be requested by the designated 12
164		-	beneficiary [subject to the provisions of § 529A of the Internal Revenue Code] OR THE 13
165		-	PERSON AUTHORIZED TO ESTABLISH THE ABLE ACCOUNT UNDER SUBSEC TION (A) 14
166		-	OF THIS SECTION . 15
167		-
168		-	(C) THE BOARD MAY ADOPT REGUL ATIONS TO CARRY OUT THIS SECTION. 16
169		-
170		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 17
171		-	October June 1, 2023. 18
172		-
173		-
174		-
175		-
176		-	Approved:
177		-	________________________________________________________________________________
178		-	Governor.
179		-	________________________________________________________________________________
180		-	Speaker of the House of Delegates.
181		-	________________________________________________________________________________
182		-	President of the Senate.