Bill > AB62

Introduced Session

Legislative Counsel's Digest: Federal law provides for the establishment and maintenance of programs by 1 states known as ABLE programs, under which tax-advantaged savings accounts are 2 created for persons who have certain qualifying disabilities. Subject to certain 3 limitations in federal law, any person, including family members, may make a 4 contribution to such an account and any interest or other growth in the value of the 5 account and distributions taken from the account are tax free. Under federal law, 6 distributions from the account may only be used to pay expenses related to living a 7 life with a disability and may include such things as education, housing, 8 transportation, assistive technology, and employment training and support. 9 (Achieving a Better Life Experience Act of 2014, 26 U.S.C. 529A) Existing state 10 law requires the State Treasurer to establish or otherwise ensure the establishment 11 of the Nevada ABLE Savings Program as a qualified program pursuant to 26 12 U.S.C. 529A. (NRS 427A.882-427A.896) 13 Existing law authorizes the State Treasurer to adopt regulations to establish and 14 carry out the Nevada ABLE Savings Program. (NRS 427A.889) Section 1of this 15 bill specifically authorizes such regulations to include procedures for the 16 administration of the Nevada ABLE Savings Program, including: (1) a procedure 17 for enrolling in the Program; (2) procedures for a person to access information 18 regarding a savings trust account; (3) methods and incentives to encourage 19 contributions to a savings trust account; and (4) a procedure for distributions from a 20 savings trust account. Section 1also authorizes the State Treasurer to apply for and 21 accept any gift, grant, donation, bequest or other source of money to carry out the 22 Nevada ABLE Savings Program. 23 Existing law requires the State Treasurer to establish such accounts as he or she 24 determines necessary to carry out his or her duties relating to the Nevada ABLE 25 Savings Program, including: (1) a Program Account in the Nevada ABLE Savings 26 Program Trust Fund; and (2) an Administrative Account and an Endowment 27 Account in the State General Fund. Existing law requires the Endowment Account 28 to be used for the deposit of any money received by the Nevada ABLE Savings 29 Program that is not received pursuant to a savings trust agreement and, in the 30 determination of the State Treasurer, is not necessary for the use of the 31 Administrative Account. Existing law authorizes the money in the Endowment 32 Account to be expended for any purpose related to the Nevada ABLE Savings 33 Program. (NRS 427A.893) Section 2of this bill specifically provides that: (1) any 34 gift, grant, donation, bequest or other source of money received by the State 35 Treasurer to carry out the Nevada ABLE Savings Program must be deposited in the 36 Endowment Account; and (2) money in the Endowment Account may be expended 37 for contributions to savings trust accounts. 38 SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 427A.889 is hereby amended to read as 1 follows: 2 427A.889 1. The State Treasurer may adopt regulations to 3 establish and carry out the Nevada ABLE Savings Program to 4 comply with the requirements of a qualified ABLE program 5 pursuant to 26 U.S.C. 529A, as amended. 6 2. The regulations must be consistent with the provisions of the 7 Internal Revenue Code set forth in Title 26 of the United States 8 Code, and any regulations adopted pursuant thereto, to ensure that 9 the Nevada ABLE Savings Program meets all criteria for federal 10 tax-deferred or tax-exempt benefits, or both. 11 3. The regulations must provide for the use of savings trust 12 agreements and savings trust accounts to apply distributions toward 13 qualified disability expenses in accordance with 26 U.S.C. 529A, 14 as amended. 15 4. The regulations may include any other provisions not 16 inconsistent with federal law that the State Treasurer determines are 17 necessary for the efficient and effective administration of the 18 Nevada ABLE Savings Program and the Trust Fund, including, 19 without limitation: 20 (a) Procedures for the administration of the Nevada ABLE 21 Savings Program, including, without limitation: 22 (1) A procedure for enrolling in the Program; 23 (2) Procedures for a person to access information 1 regarding a savings trust account, including, without limitation, 2 the balance in the account; 3 (3) Methods and incentives to encourage contributions to a 4 savings trust account; and 5 (4) A procedure for distributions from a savings trust 6 account; 7 (b) Provisions for the charging and collection of administrative 8 fees and charges in connection with any transaction relating to the 9 Nevada ABLE Savings Program, including, without limitation, fees 10 or charges related to continued participation in the Program; 11 (b) (c) A requirement that any money deposited in accordance 12 with a savings trust agreement, and any increase in the value thereof 13 or qualified withdrawal taken therefrom, is not subject to 14 attachment, levy or execution by any creditor of a contributor, 15 account owner or designated beneficiary and may not be used as 16 security for a loan; 17 (c) (d) A requirement that any money deposited in accordance 18 with a savings trust agreement, and any increase in the value thereof 19 or qualified withdrawal taken therefrom, must not be used to 20 calculate the personal assets of a designated beneficiary or account 21 owner to determine eligibility for any disability, medical or other 22 health benefits administered by this State; and 23 (d) (e) A requirement that any money deposited in accordance 24 with a savings trust agreement, and any increase in the value thereof 25 or qualified withdrawal taken therefrom, must not be used to 26 calculate the personal assets of a designated beneficiary or account 27 owner to determine eligibility or need for any student loan program, 28 student grant program or any other student aid program 29 administered by this State, except as otherwise provided for in 30 federal law. 31 5. If the State Treasurer does not adopt regulations pursuant to 32 this section to establish and carry out the Nevada ABLE Savings 33 Program, the State Treasurer shall otherwise ensure that the Nevada 34 ABLE Savings Program is established and carried out pursuant to 35 NRS 427A.882 to 427A.896, inclusive. 36 6. The State Treasurer may apply for and accept any gift, 37 grant, donation, bequest or other source of money to carry out the 38 Nevada ABLE Savings Program. 39

AI Summary

Committee Categories

No sponsors listed

Other Sponsors (1)

Approved by the Governor. Chapter 7. (on 04/21/2021)

Official Document