A09171 Summary:

BILL NOA09171A
 
SAME ASSAME AS S08101
 
SPONSORGunther
 
COSPNSR
 
MLTSPNSR
 
Amd §§84.03, 84.05 & 84.09, Ment Hyg L; rpld §612 sub§ (b) ¶42, sub§ (c) ¶¶ 42 & 43, Tax L
 
Relates to NY ABLE account ownership, contributions and distributions.
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A09171 Actions:

BILL NOA09171A
 
02/01/2016referred to mental health
02/09/2016reported referred to ways and means
04/14/2016amend (t) and recommit to ways and means
04/14/2016print number 9171a
06/15/2016reported referred to rules
06/16/2016reported
06/16/2016rules report cal.447
06/16/2016ordered to third reading rules cal.447
06/16/2016passed assembly
06/16/2016delivered to senate
06/16/2016REFERRED TO RULES
06/17/2016SUBSTITUTED FOR S8101
06/17/20163RD READING CAL.1982
06/17/2016PASSED SENATE
06/17/2016RETURNED TO ASSEMBLY
07/13/2016delivered to governor
07/21/2016signed chap.120
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A09171 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9171A
 
SPONSOR: Gunther
  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 disabili- ties 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. Specif- ically, 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 disa- bilities 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.
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A09171 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         9171--A
 
                   IN ASSEMBLY
 
                                    February 1, 2016
                                       ___________
 
        Introduced  by M. of A. GUNTHER -- read once and referred to the Commit-
          tee on Mental Health -- recommitted to the Committee on Ways and Means
          in accordance with Assembly Rule 3, sec. 2  --  committee  discharged,
          bill  amended,  ordered  reprinted  as amended and recommitted to said
          committee
 
        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
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivisions 2 and 3 of section 84.03 of the mental hygiene
     2  law, as added by chapter 576 of the laws of 2015, are amended to read as
     3  follows:
     4    2.  "Account"  or  "NY  ABLE account" shall mean an individual savings
     5  account established in accordance with the provisions of [this  article]
     6  section 529A of the Internal Revenue Code.
     7    3.  "Account  owner"  shall  mean a person who opens a savings account
     8  pursuant to the provisions of [this article] section 529A of the  Inter-
     9  nal Revenue Code, as amended, or any regulations promulgated thereunder.
    10  The  account  owner [may] must also be the designated beneficiary of the
    11  account.
    12    § 2. Subdivisions 1 and 2 of section 84.05 of the mental hygiene  law,
    13  as  added  by  chapter  576  of the laws of 2015, are amended to read as
    14  follows:
    15    1. The comptroller shall establish a NY  ABLE  account  plan  for  all
    16  eligible  individuals [and families] for the purpose of supporting indi-
    17  viduals with disabilities to maintain health, independence, and  quality
    18  of  life. The comptroller is hereby authorized to promulgate any and all
    19  rules and regulations necessary for the implementation of  this  article
    20  in  consultation  with  the  commissioners of the office for people with
    21  developmental disabilities, the office of mental health, the  department
    22  of health, and the office of temporary and disability assistance.
    23    2.  The  comptroller may implement the NY ABLE savings account program
    24  through use of third party vendors as administrators of  such  accounts,
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10067-13-6

        A. 9171--A                          2
 
     1  and financial organizations as account depositories and managers.  Under
     2  the  program,  eligible individuals may establish accounts directly with
     3  an account depository.
     4    §  3. Subdivisions 2 and 8 of section 84.09 of the mental hygiene law,
     5  as added by chapter 576 of the laws of 2015,  are  amended  to  read  as
     6  follows:
     7    2.  [A NY ABLE account may be opened by any person who desires to save
     8  money for the payment of the qualified living expenses of  a  designated
     9  beneficiary. Such person who opens a NY ABLE account shall be considered
    10  the account owner as set forth in this article.]
    11    (a)  An  application for [such] a NY ABLE account shall be in the form
    12  prescribed by the program and contain the following:
    13    (i) the name, address and social security number or employer identifi-
    14  cation number of the account owner;
    15    (ii) the designation of a designated beneficiary;
    16    (iii) the name, address and social security number of  the  designated
    17  beneficiary; and
    18    (iv) such other information as the program may require.
    19    (b) The comptroller may establish a nominal fee for such application.
    20    8.  An  account  owner  may  change  the  designated beneficiary of an
    21  account to another beneficiary [who is qualified under the provisions of
    22  this article] only as permitted  under  section  529A  of  the  Internal
    23  Revenue Code.
    24    §  4.  Paragraph 42 of subsection (b) of section 612 of the tax law is
    25  REPEALED.
    26    § 5. Paragraphs 42 and 43 of subsection (c) of section 612 of the  tax
    27  law are REPEALED.
    28    §  6.  This  act  shall  take  effect on the same date and in the same
    29  manner as chapter 576 of the laws of 2015 took effect.
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