Establishes the New York achieving a better life experience (NY ABLE) savings account act

Summary of provisions

Section 1 is the short title.

Section 2 is the legislative intent for the creation of NY ABLE accounts.

Section 3 amends the mental hygiene law by adding a new article 84.

84.03 - Establishes definitions for this act.

84.05 - Authorizes the comptroller to establish NY ABLE accounts for all eligible individuals with the goal and purpose of supporting individuals with disabilities to maintain health, independence, and quality of life. Furthermore, it authorizes the comptroller to promulgate any and all rules and regulations necessary for the implementation of this article in consultation with the commissioners of the office of mental health, the office for people with developmental disabilities, and the department of health.

84.07 - Creates a NY ABLE account advisory council which shall consist of the following members or their designee's; the comptroller, the commissioner of the office of mental health, the commissioner of the office for people with developmental disabilities, the commissioner of the department of health, the superintended of the department of financial services, the commissioner of the department of taxation and finance, the commissioner of temporary disability assistance. In addition the governor shall appoint three members, the temporary president of the senate and speaker of the assembly shall each appoint two members.

Members of the council shall have knowledge, skill and expertise in issues relating to individuals with disabilities; expertise in issues relating to individuals with disabilities; expertise in services to persons with disabilities; and knowledge in management and support of the fiscal affairs of such persons with disabilities.

84.09 - Provides the program requirements.

84.11 - Provided distribution requirements for NY ABLE accounts.

Section 4 amends subsection (b) of section 612 of the tax law is amended by adding a new paragraph.

Section 5 amends subsection (c) of section 612 of the tax law by adding two new paragraphs.

Section 6 amends paragraph (a) of subdivision 2 of section 366 of the social services law by adding a new subparagraph 11.

Section 7 is the effective date.

Justification

On December 19th, 2014, President Barack Obama signed into law the Achieving a Better Life Experience (ABLE) Act, authorizing states to establish ABLE savings accounts for qualified individuals with disabilities. One of the most important benefits of the ABLE savings account is that money deposited into the account will be exempt from the monetary limit related to personal assets that if exceeded in most cases, would deem the individual account owner ineligible for Medicaid and Supplemental Security income benefits. Furthermore, ABLE savings accounts offer families the benefits of a tax deferred financial vehicle.

As the state continues to transition away from institutional settings and emphasize community based and least restrictive treatment models for people with disabilities, New York must utilize all available tools in order to ensure the success of every individual with a disability. This bill will foster independence, improved quality of life, and better maintenance of health for individuals with disabilities and their families by authorizing New York State to establish ABLE savings accounts.

The passage of this legislation is critical to help fund a variety of essential expenses for individuals living with disabilities.

Legislative history

Similar to S.7937-2014

Fiscal implications

Minimal.

Effective date

This act shall take effect April 1, 2016; provided, however, that effective immediately, the addition, amendment and/or repeal of any rules or regulations necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.