Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB121 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 121
5	5	March 24, 2023 - Introduced by Representatives MURSAU, SUBECK, C. ANDERSON, J.
6	6	ANDERSON, ANDRACA, BARE, BEHNKE, BODDEN, BRANDTJEN, CONLEY, DITTRICH,
7	7	DONOVAN, EDMING, HAYWOOD, JACOBSON, JOERS, MOSES, O'CONNOR, OHNSTAD,
8	8	RATCLIFF, SCHMIDT, SHANKLAND, SINICKI and STUBBS, cosponsored by Senators
9	9	JACQUE, TAYLOR, BALLWEG, FELZKOWSKI, HESSELBEIN, LARSON, QUINN, ROYS,
10	10	SPREITZER and CARPENTER. Referred to Committee on Financial Institutions.
11	11	*AUTHORS SUBJECT TO CHANGE*
12	12	AN ACT to amend 71.05 (6) (a) 28.; and to create 224.55 of the statutes; relating
13	13	to: requiring the Department of Financial Institutions to implement a section
14	14	529A ABLE savings account program and granting rule-making authority.
15	15	Analysis by the Legislative Reference Bureau
16	16	This bill requires the Department of Financial Institutions to implement a
17	17	qualified ABLE program under section 529A of the Internal Revenue Code allowing
18	18	tax-exempt accounts for qualified expenses incurred by individuals with
19	19	disabilities.
20	20	Under current federal law, states may create a qualified Achieving a Better Life
21	21	Experience program under which an individual may establish a tax-exempt savings
22	22	account to pay for qualified expenses, such as education, housing, and transportation
23	23	costs, for a beneficiary who is an individual with disabilities, as defined under federal
24	24	law. Although these accounts, commonly referred to as “ABLE accounts” or “section
25	25	529A accounts,” cannot be established under this state's law, they can be established
26	26	under another state's law, and if so established, withdrawals from these accounts for
27	27	payment of qualified disability expenses for the account beneficiary are exempt from
28	28	taxation in this state.
29	29	This bill requires DFI to implement and administer a qualified ABLE program,
30	30	either directly or by entering into an agreement with another state or alliance of
31	31	states to establish an ABLE program or otherwise administer ABLE program
32	32	services for the residents of this state. DFI must, within approximately six months,
33	33	determine whether implementing the ABLE program directly or by entering into an
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39	39	agreement is the best option for this state's residents. If DFI enters into an
40	40	agreement, the agreement may require the party contracting with DFI to do any of
41	41	the following: 1) develop and implement an ABLE program in accordance with all
42	42	requirements under federal law and modify the ABLE program as necessary for
43	43	participants to qualify for federal income tax benefits; 2) contract for professional
44	44	and technical assistance and advice in developing marketing plans and promotional
45	45	materials to publicize the ABLE program; 3) work with organizations with expertise
46	46	in supporting people with disabilities and their families in administering the
47	47	agreement and ensuring accessibility of the ABLE program for people with
48	48	disabilities; or 4) take any other action necessary to implement and administer the
49	49	ABLE program. The bill also requires DFI to provide on its website and in written
50	50	materials certain information concerning ABLE accounts.
51	51	For further information see the state fiscal estimate, which will be printed as
52	52	an appendix to this bill.
53	53	The people of the state of Wisconsin, represented in senate and assembly, do
54	54	enact as follows:
55	55	SECTION 1. 71.05 (6) (a) 28. of the statutes is amended to read:
56	56	71.05 (6) (a) 28. Upon the termination of an account as described under s.
57	57	16.643 or 224.55, any amount in the account that is returned to an account owner's
58	58	estate.
59	59	SECTION 2. 224.55 of the statutes is created to read:
60	60	224.55 Support accounts for individuals with disabilities. (1)
61	61	DEFINITIONS. In this section:
62	62	(a) “ABLE account" means an account established under an ABLE program.
63	63	(b) “ABLE program” means a qualified ABLE program under section 529A of
64	64	the Internal Revenue Code.
65	65	(2) DEPARTMENT TO ESTABLISH ABLE PROGRAM. (a) Implementation directly or
66	66	by agreement. The department shall implement and administer an ABLE program,
67	67	either directly or by entering into a formal or informal agreement with another state,
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85	85	or with an entity representing an alliance of states, to establish an ABLE program
86	86	or otherwise administer ABLE program services for the residents of this state.
87	87	(b) Review of other states' partnership programs. The department shall review
88	88	section 529A ABLE state partnership programs offered by other states and, no later
89	89	than the first day of the 7th month beginning after the effective date of this
90	90	subsection, determine whether, as the best option for Wisconsin residents, the
91	91	department will implement the ABLE program under par. (a) directly or by entering
92	92	into an agreement.
93	93	(c) Agreement terms. An agreement under par. (a) may require the party
94	94	contracting with the department, in addition to providing any other services, to do
95	95	any of the following:
96	96	1. Develop and implement an ABLE program in accordance with all
97	97	requirements under section 529A of the Internal Revenue Code, and modify this
98	98	ABLE program as necessary for participants in the ABLE program to qualify for the
99	99	federal income tax benefits or treatment provided under section 529A of the Internal
100	100	Revenue Code and rules adopted under section 529A.
101	101	2. Engage the services of vendors on a contractual basis for rendering
102	102	professional and technical assistance and advice in developing marketing plans and
103	103	promotional materials to publicize the ABLE program.
104	104	3. Work with organizations with expertise in supporting people with
105	105	disabilities and their families in administering the agreement and ensuring
106	106	accessibility of the ABLE program for people with disabilities.
107	107	4. Take any other action necessary to implement and administer the ABLE
108	108	program.
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135	135	(d) Information about ABLE accounts. The department shall include on its
136	136	website information concerning ABLE accounts, including current information on
137	137	each state that offers ABLE accounts, information on how residents of this state may
138	138	participate in those ABLE accounts, and links to resources to provide information
139	139	about ABLE accounts in those states. The department shall also provide such
140	140	information in written materials it prepares about ABLE accounts. The department
141	141	shall provide a link, on its website, to the website of the department of agriculture,
142	142	trade and consumer protection to facilitate the filing of complaints related to ABLE
143	143	accounts.
144	144	(3) CONFIDENTIALITY. The department shall keep confidential any personal and
145	145	financial information maintained by the department relating to an ABLE account.
146	146	(4) FUNDING; RULES. (a) All expenses incurred by the department under this
147	147	section shall be paid from the appropriation under s. 20.144 (1) (g).
148	148	(b) The department may promulgate rules to implement and administer this
149	149	section.
150	150	(END)
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