Revision: May 1, 2016, midnight
\t \t\tCHAPTER 9
SB 265-FN - FINAL VERSION
15Apr2015… 1222h
6Jan2016... 2446h
03/03/2016 0519EBA
2016 SESSION
\t15-1031
\t04/09
SENATE BILL\t\t265-FN
AN ACT\testablishing the achieving a better life experience (ABLE) savings account program.
COMMITTEE:\tWays and Means
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AMENDED ANALYSIS
\tThis bill establishes the New Hampshire Achieving a Better Life Experience (ABLE) savings account program. The bill makes implementation of the program contingent on the adoption of federal regulations, the identification of a suitable third-party vendor to administer the program, and if there is not an appropriation from the general fund.
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Explanation:\tMatter added to current law appears in bold italics.
\t\tMatter removed from current law appears [in brackets and struckthrough.]
\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
15Apr2015… 1222h
6Jan2016... 2446h
03/03/2016 0519EBA\t15-1031
\t04/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\testablishing the achieving a better life experience (ABLE) savings account program.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t9:1 New Chapter; Achieving a Better Life Experience (ABLE) Savings Account Program. Amend RSA by inserting after chapter 195-J the following new chapter:
CHAPTER 195-K
ACHIEVING A BETTER LIFE EXPERIENCE (ABLE) SAVINGS ACCOUNT PROGRAM
\t195-K:1 Definitions. In this chapter:
\t\tI. “Achieving a Better Life Experience Act of 2014” means the federal Achieving a Better Life Experience (ABLE) Act of 2014 which allows individuals with disabilities to establish tax-free 529A savings accounts to save for medical, housing, transportation, employment training, education, and other quality of life expenses.
\t\tII. “Executive director” means the executive director of the governor’s commission on disability established in RSA 275-C.
\t\tIII. “Individuals with disabilities” means individuals who are eligible for the program because their disabilities occurred on or before the individual attained age 26, as required by 26 U.S.C. section 529A(e)(1)-(2) of the federal Achieving a Better Life Experience Act of 2014.
\t\tIV. “Savings plan” means any plan administered as the New Hampshire ABLE savings account program.
\t195-K:2 Achieving a Better Life Experience (ABLE) Savings Account Program.
\t\tI. The state treasurer and the executive director shall establish and administer a qualified ABLE savings account program as authorized in the Achieving a Better Life Experience Act of 2014, and in accordance with the provisions of section 529A of the United States Internal Revenue Code of 1986, as amended, and may enter into such contracts as the state treasurer and the executive director deem necessary to achieve this purpose, subject to the approval of the governor and council.
\t\tII. The state treasurer and the executive director shall adopt rules relative to the administration, management, promotion, and marketing of the qualified ABLE program and ensure that the qualified ABLE program complies with section 529A of the Internal Revenue Code of 1986, as amended, and any related federal law applicable to the qualified ABLE program.
\t\tIII. Any personnel and administrative costs related to plan administration within the state treasurer’s office and the governor’s commission on disability shall be funded from the savings plan.
\t\tIV. No general fund moneys shall be expended in support of the savings plan or its implementation.
\t195-K:3 ABLE Savings Plan.
\t\tI.(a) The state treasurer and the executive director shall, as needed, issue requests for proposals to evaluate and determine the vehicle for investments of the savings plan and its administration.
\t\t\t(b) The state treasurer and the executive director shall consider and, if appropriate, give preference to proposals best meeting the following criteria:
\t\t\t\t(1) Ability to administer financial programs with individual account maintenance and reporting.
\t\t\t\t(2) Ability to develop and administer an investment program of a nature similar to the objectives of the ABLE savings plan.
\t\t\t(c) The final selection of the vehicle for investments and its administration shall be made by the state treasurer and the executive director.
\t\t\t(d) The state treasurer and the executive director may consider and contract with an ABLE savings account program previously established in another state.
\t\tII. The savings plan may be on a “cash only” basis, and may include provisions for automatic deductions.
\t\tIII. The savings plan or such trust may be divided into multiple investment portfolios. If so divided, and if distinct records are maintained for any such portfolio and the assets associated with any such portfolio are accounted for separately from the other assets of the trust, then the debts, liabilities, obligations, and expenses incurred, contracted for, or otherwise existing with respect to a particular portfolio may be enforceable against the assets of such portfolio only, and not against the assets of the trust generally.
\t195-K:4 Funds Exempt From Interest and Dividends Tax. Income and distributions from any qualified ABLE program as defined in the Internal Revenue Code of 1986, as amended, shall be exempt from the interest and dividends tax pursuant to RSA 77:4-h, provided that distributions from the plan which are subject to federal income tax shall be subject to the interest and dividends tax pursuant to RSA 77 on the accrued income portion of the savings plan distribution.
\t195-K:5 Authority to Issue Request for Proposals.
\t\tI. Within 6 months of the issuance of regulations by the Internal Revenue Service and the federal Department of Treasury governing implementation of any savings account programs authorized pursuant to the federal Achieving a Better Life Experience Act of 2014 (ABLE), the state treasurer, in consultation with the executive director, shall issue a request for proposals from third-party vendors to implement a savings plan pursuant to this chapter and in accordance with provisions of section 529A of the United States Internal Revenue Code of 1986, as amended. The state treasurer and executive director shall implement a savings plan pursuant to this chapter within 6 months after a suitable third-party vendor has been selected.
\t\tII. In selecting a third-party vendor, the state treasurer and executive director of the governor’s commission on disability shall consider, and, if appropriate, give preference to proposals best meeting the following criteria:
\t\t\t(a) Ability to administer financial programs with individual account maintenance and reporting.
\t\t\t(b) Ability to develop and administer an investment program of a nature similar to the objectives of the ABLE plan.
\t\tIII. The final selection of the vehicle for investments and administration shall be made by the treasurer and the executive director.
\t\tIV. The state treasurer and the executive director may consider and contract with an ABLE savings account program previously established in another state.
\t9:2 New Section; Interest and Dividends from Funds Invested in Achieving a Better Life Experience (ABLE) Plan Not Taxable. Amend RSA 77 by inserting after section 77:4-g the following new section:
\t77:4-h Interest and Dividends from Funds Invested in Achieving a Better Life Experience (ABLE) Plan Not Taxable. Notwithstanding any provision of RSA 77:4, income and distributions from any Achieving a Better Life Experience (ABLE) plan as defined in the Internal Revenue Code of 1986, as amended, shall not be taxable under this chapter to the plan or its sponsors, participants, or beneficiaries to the extent that the same is exempted from federal income taxation under section 529A of the Internal Revenue Code of 1986, as amended.
\t9:3 Contingent Repeal. The following are repealed:
\t\tI. RSA 195-K, relative to the Achieving a Better Life Experience savings account program.
\t\tII. RSA 77:4-h, relative to interest and dividends from funds invested in the Achieving a Better Life Experience savings account program.
\t9:4 Contingency. Section 3 of this act shall take effect upon the earlier of the following:
\t\tI. The date of certification from the state treasurer and the executive director of the governor’s commission on disability to the secretary of state and the director of the office of legislative services that, after issuing a request for proposals, the treasurer and executive director of the governor’s commission on disability have determined that no suitable vendor is available to implement the New Hampshire Achieving a Better Life Experience savings account program; or
\t\tII. The date of certification from the state treasurer and the executive director of the governor’s commission on disability to the secretary of state and the director of the office of legislative services that the Internal Revenue Service and the federal Department of Treasury have not issued regulations governing implementation of any state savings account programs authorized pursuant to the federal Achieving a Better Life Experience Act of 2014; or
\t\tIII. The date of certification from the commissioner of the department of administrative services to the secretary of state and the director of the office of legislative services that a general fund appropriation has been made to support the New Hampshire Achieving a Better Life Experience savings account program as established in RSA 195-K.
\t\tI. Section 3 of this act shall take effect as provided in section 4 of this act.
\t\tII. The remainder of this act shall take effect upon its passage.
Approved: March 16, 2016
Effective Date: I. Section 3 shall take effect as provided in section 4.
II. Remainder shall take effect March 16, 2016