Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 199 First Substitute (2017GS)

Sponsor

Sen. Weiler, T.

Final action

Governor Signed 3/21/2017

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms;
• directs the Department of Workforce Services to either:
• administer the state Achieving a Better Life Experience Program (ABLE);
• enter into a contract with a state that maintains a qualified ABLE program to provide Utah residents access to that state's qualified ABLE program; or
• inform eligible individuals and parents or legal guardians of eligible individuals about qualified ABLE programs offered by other states to which Utah residents may apply; and
• allows persons that contribute to an account in any qualified ABLE program to claim a nonrefundable state tax credit.

Every vote on this bill

Bill text

ABLE ACT REVISIONS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Todd Weiler
House Sponsor: 
Rebecca P. Edwards
LONG TITLE
General Description:
This bill modifies provisions of the Achieving a Better Life Experience Program Act. 
Highlighted Provisions:
This bill:
▸ defines terms;
▸ directs the Department of Workforce Services to either:
• administer the state Achieving a Better Life Experience Program (ABLE);
• enter into a contract with a state that maintains a qualified ABLE program to
provide Utah residents access to that state's qualified ABLE program; or
• inform eligible individuals and parents or legal guardians of eligible individuals
about qualified ABLE programs offered by other states to which Utah residents
may apply; and
▸ allows persons that contribute to an account in any qualified ABLE program to
claim a nonrefundable state tax credit. 
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
35A-12-102
, as enacted by Laws of Utah 2015, Chapter 460
35A-12-201
, as enacted by Laws of Utah 2015, Chapter 460
59-7-620
, as enacted by Laws of Utah 2015, Chapter 460
59-10-1035
, as enacted by Laws of Utah 2015, Chapter 460
REPEALS:
35A-12-202
, as enacted by Laws of Utah 2015, Chapter 460
35A-12-301
, as enacted by Laws of Utah 2015, Chapter 460
35A-12-302
, as enacted by Laws of Utah 2015, Chapter 460
35A-12-303
, as enacted by Laws of Utah 2015, Chapter 460
35A-12-304
, as enacted by Laws of Utah 2015, Chapter 460
35A-12-305
, as enacted by Laws of Utah 2015, Chapter 460
35A-12-401
, as enacted by Laws of Utah 2015, Chapter 460
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
35A-12-102
 is amended to read:
35A-12-102.
Definitions.
As used in this chapter:
(1) "Account" means [
a state Achieving a Better Life Experience Program account
established under this chapter
] 
an account in a qualified ABLE program
 .
[
(2) "Account administrator" means a person who administers accounts in accordance
with this chapter.
]
[
(3) "Account agreement" means an agreement between an account administrator and
an account owner to establish an account.
]
[
(4) "Account owner" means the following who enter into an agreement with an
account administrator to establish an account under this chapter:
]
[
(a) an eligible individual; or
]
[
(b) if the eligible individual is under 18 years of age or is incapacitated, a parent or
legal guardian of the eligible individual.
]
[
(5) "Beneficiary" means an individual who is:
]
[
(a) an eligible individual;
]
[
(b) a resident of:
]
[
(i) this state; or
]
[
(ii) a contracting state; and
]
[
(c) designated as the beneficiary of an account under an account agreement.
]
[
(6) "Contracting state" means a state that:
]
[
(a) does not have an Achieving a Better Life Experience program that meets the
requirements to be a qualified Achieving a Better Life Experience program under the federal
Achieving a Better Life Experience Act; and
]
[
(b) has entered into a contract with this state to provide residents of the other state
access to the state Achieving a Better Life Experience Program.
]
[
(7) "Eligible individual" means an individual who, before the individual turns 26 years
of age:
]
[
(a) as determined by the department, has a medically determinable physical or mental
impairment that:
]
[
(i) results in marked and severe functional limitations that can be expected to result in
death; or
]
[
(ii) has lasted or can be expected to last for a continuous period of 12 months or more;
or
]
[
(b) is eligible for benefits under title II or title XVI of the Social Security Act on the
basis of blindness.
]
[
(8) "Federal Achieving a Better Life Experience Act" means the Stephen Beck, Jr.,
Achieving a Better Life Experience Act of 2014, Pub. L. No. 113-295, 128 Stat. 4010.
]
[
(9) "Qualified disability expenses" means the same as that term is defined in the
federal Achieving a Better Life Experience Act.
]
(2) "Qualified ABLE program" means the same as that term is defined in 26 U.S.C.
Sec. 529A.
[
(10)
] 
(3)
 "State Achieving a Better Life Experience Program" means the program
created by this chapter.
Section 2. Section 
35A-12-201
 is amended to read:
35A-12-201.
Creation of program.
(1) There is created the state Achieving a Better Life Experience Program.
(2) The department shall 
do one of the following:
(a)
 administer the [
program
] 
state Achieving a Better Life Experience Program
 in
compliance with:
[
(a) this chapter;
]
[
(b) the federal Achieving a Better Life Experience Act; and
]
(i) 26 U.S.C. Sec. 529A; and
[
(c)
] 
(ii)
 regulations, if any, issued by the United States Department of the Treasury[
.
]
;
[
(3) The program shall authorize the creation of an account for the purpose of allowing
contributions on behalf of a beneficiary for the payment of qualified disability expenses.
]
[
(4) Subject to Subsection 
35A-12-301
(3), the department shall ensure that
contributions to an account:
]
[
(a) are held in trust for a beneficiary; and
]
[
(b) may not be used for a purpose other than the payment of qualified disability
expenses.
]
(b) enter into a contract with a state that maintains a qualified ABLE program to
provide Utah residents access to that state's qualified ABLE program; or
(c) inform eligible individuals and parents or legal guardians of eligible individuals
about qualified ABLE programs offered by other states to which Utah residents may apply.
(3) This chapter may not be interpreted to:
(a) authorize or provide a disability-related service to an eligible individual;
(b) be a factor in establishing residency; or
(c) provide that contributions made into an account are sufficient to cover the qualified
disability expenses of an eligible individual.
(4) An account is not insured or guaranteed by the state.
(5) The state does not guarantee the rate or payment of interest or other return on an
account.
Section 3. Section 
59-7-620
 is amended to read:
59-7-620.
Nonrefundable tax credit for contribution to state Achieving a Better
Life Experience Program account.
(1) As used in this section:
[
(a) "Account" means the same as that term is defined in Section 
35A-12-102
.
]
[
(b) "Account administrator" means the same as that term is defined in Section
35A-12-102
.
]
(a) "Account" means an account in a qualified ABLE program where the designated
beneficiary of the account is a resident of this state.
[
(c)
] 
(b)
 "Contributor" means a corporation that:
(i) makes a contribution to an account; and
(ii) receives a statement from the [
account administrator in accordance with Section
35A-12-304
] 
qualified ABLE program
 itemizing the contribution.
[
(d) "State Achieving a Better Life Experience Program" means the same as that term
is defined in Section 
35A-12-102
.
]
(c) "Designated beneficiary" means the same as that term is defined in 26 U.S.C. Sec.
529A.
(d) "Qualified ABLE program" means the same as that term is defined in Section
35A-12-102
.
(2) A contributor to an account [
created under the state Achieving a Better Life
Experience Program
] may claim a nonrefundable tax credit as provided in this section.
(3) Subject to the other provisions of this section, the tax credit is equal to the product
of:
(a) 5%; and
(b) the total amount of contributions:
(i) the contributor makes for the taxable year; and
(ii) for which the contributor receives a statement from the [
account administrator in
accordance with Section 
35A-12-304
] 
qualified ABLE program
 itemizing the contributions.
(4) A contributor may not claim a tax credit under this section:
(a) for an amount of excess contribution 
to an account
 that is returned to the
contributor [
in accordance with Section 
35A-12-302
]; or
(b) with respect to an amount the contributor deducts on a federal income tax return.
(5) A tax credit under this section may not be carried forward or carried back.
Section 4. Section 
59-10-1035
 is amended to read:
59-10-1035.
Nonrefundable tax credit for contribution to state Achieving a Better
Life Experience Program account.
(1) As used in this section:
[
(a) "Account" means the same as that term is defined in Section 
35A-12-102
.
]
[
(b) "Account administrator" means the same as that term is defined in Section
35A-12-102
.
]
(a) "Account" means an account in a qualified ABLE program where the designated
beneficiary of the account is a resident of this state.
[
(c)
] 
(b)
 "Contributor" means a claimant, estate, or trust that:
(i) makes a contribution to an account; and
(ii) receives a statement from the [
account administrator in accordance with Section
35A-12-304
] 
qualified ABLE program
 itemizing the contribution.
[
(d) "State Achieving a Better Life Experience Program" means the same as that term
is defined in Section 
35A-12-102
.
]
(c) "Designated beneficiary" means the same as that term is defined in 26 U.S.C. Sec.
529A.
(d) "Qualified ABLE program" means the same as that term is defined in Section
35A-12-102
.
(2) A contributor to an account [
created under the state Achieving a Better Life
Experience Program
] may claim a nonrefundable tax credit as provided in this section.
(3) Subject to the other provisions of this section, the tax credit is equal to the product
of:
(a) 5%; and
(b) the total amount of contributions:
(i) the contributor makes for the taxable year; and
(ii) for which the contributor receives a statement from the [
account administrator in
accordance with Section 
35A-12-304
] 
qualified ABLE program
 itemizing the contributions.
(4) A contributor may not claim a tax credit under this section:
(a) for an amount of excess contribution 
to an account
 that is returned to the
contributor [
in accordance with Section 
35A-12-302
]; or
(b) with respect to an amount the contributor deducts on a federal income tax return.
(5) A tax credit under this section may not be carried forward or carried back.
Section 5. 
Repealer.
This bill repeals:
Section 
35A-12-202
,
Application.
Section 
35A-12-301
,
Account administrator -- Fees or service charges.
Section 
35A-12-302
,
Contributions.
Section 
35A-12-303
,
Account agreements -- Beneficiaries.
Section 
35A-12-304
,
Duties of account administrator.
Section 
35A-12-305
,
Reports.
Section 
35A-12-401
,
Scope of chapter -- No state guarantee.