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Sponsors
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History
- Substituted by A9171A
- Ordered to third reading cal.1982
- Referred to rules
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to NY ABLE account ownership, contributions and distributions; repealer
Signed by Governor · Sponsor Aileen Gunther
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the mental hygiene law, in relation to NY ABLE account ownership, contributions and distributions; and to repeal certain provisions of the tax law relating thereto
Purpose of the bill
This bill would encourage and assist individuals and families in saving private funds for the purpose of supporting individuals with disabilities to maintain health, independence and quality of life; and provide a secure funding mechanism for qualified individuals with a disability that will supplement, but not supplant, federal benefits provided through existing sources.
Summary of provisions
Section 1 makes conforming changes to section 84.03 of the mental hygiene law to reflect Internal Revenue Service regulations. Specifically, it provides that accounts must be established in accordance with section 529A of the Internal Revenue Code, and that the account owner must also be the designated beneficiary of the account.
Section 2 amends section 84.05 of the mental hygiene law to further clarify that an account shall only be established for the designated beneficiary who must also be the account owner.
Section 3 amends 84.09 of the mental hygiene law to further clarify that only the designated beneficiary is authorized to open an account.
Section 4 and Section 5 repeal subsection (b) and paragraphs 42 and 43 of subsection (c) of section 612 of the tax law, as added by chapter 576 of the laws of 2015, to disallow the tax deduction provided for deposits into the account of a designated beneficiary.
Section 6 provides that the act shall take effect on the same date and in the same manner as chapter 576 of the laws of 2015.
Prior legislative history
This bill is a negotiated chapter amendment to chapter 576 of the laws of 2015.
Statement in support
Chapter 576 of 2015 authorized the state to establish a NY ABLE savings account that would allow qualified individuals with developmental disabilities to use non-Medicaid reimbursable expenses during their adult lives. The funds would accrue interest tax-free and would not be a factor for Medicaid eligibility. These savings accounts will foster independence, improved quality of life, and better maintenance of health for individuals with disabilities and their families.
Budget implications
This chapter amendment significantly limits the fiscal impact on the state by eliminating the tax deduction provided for deposits into the account of a designated beneficiary.
Effective date
This act shall take effect on the same date and in the same manner as chapter 576 of the laws of 2015.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.