101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3809

 

Introduced , by Rep. Allen Skillicorn

 

SYNOPSIS AS INTRODUCED:
 
15 ILCS 505/16.5
15 ILCS 505/16.6

    Amends the State Treasurer Act. In a Section concerning a college savings pool, provides that the term "qualified expenses" includes any qualified higher education expense allowed under specified provisions of the Internal Revenue Code. In a Section concerning the ABLE account program, provides the funds contained in a College Savings Pool account established under the Act may be rolled over into an eligible ABLE account to the extent permitted by specified provisions of the Internal Revenue Code. Effective immediately.


LRB101 11427 RJF 57057 b

 

 

A BILL FOR

 

HB3809LRB101 11427 RJF 57057 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Treasurer Act is amended by changing
5Sections 16.5 and 16.6 as follows:
 
6    (15 ILCS 505/16.5)
7    Sec. 16.5. College Savings Pool.
8    (a) Definitions. As used in this Section:
9    "Account owner" means any person or entity who has opened
10an account or to whom ownership of an account has been
11transferred, as allowed by the Internal Revenue Code, and who
12has authority to withdraw funds, direct withdrawal of funds,
13change the designated beneficiary, or otherwise exercise
14control over an account in the College Savings Pool.
15    "Donor" means any person or entity who makes contributions
16to an account in the College Savings Pool.
17    "Designated beneficiary" means any individual designated
18as the beneficiary of an account in the College Savings Pool by
19an account owner. A designated beneficiary must have a valid
20social security number or taxpayer identification number. In
21the case of an account established as part of a scholarship
22program permitted under Section 529 of the Internal Revenue
23Code, the designated beneficiary is any individual receiving

 

 

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1benefits accumulated in the account as a scholarship.
2    "Member of the family" has the same meaning ascribed to
3that term under Section 529 of the Internal Revenue Code.
4    "Nonqualified withdrawal" means a distribution from an
5account other than a distribution that (i) is used for the
6qualified expenses of the designated beneficiary; (ii) results
7from the beneficiary's death or disability; (iii) is a rollover
8to another account in the College Savings Pool; or (iv) is a
9rollover to an ABLE account, as defined in Section 16.6 of this
10Act, or any distribution that, within 60 days after such
11distribution, is transferred to an ABLE account of the
12designated beneficiary or a member of the family of the
13designated beneficiary to the extent that the distribution,
14when added to all other contributions made to the ABLE account
15for the taxable year, does not exceed the limitation under
16Section 529A(b)(2)(B)(i) of the Internal Revenue Code.
17    "Program manager" means any financial institution or
18entity lawfully doing business in the State of Illinois
19selected by the State Treasurer to oversee the recordkeeping,
20custody, customer service, investment management, and
21marketing for one or more of the programs in the College
22Savings Pool.
23    "Qualified expenses" means: (i) tuition, fees, and the
24costs of books, supplies, and equipment required for enrollment
25or attendance at an eligible educational institution; (ii)
26expenses for special needs services, in the case of a special

 

 

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1needs beneficiary, which are incurred in connection with such
2enrollment or attendance; (iii) certain expenses for the
3purchase of computer or peripheral equipment, as defined in
4Section 168 of the federal Internal Revenue Code (26 U.S.C.
5168), computer software, as defined in Section 197 of the
6federal Internal Revenue Code (26 U.S.C. 197), or Internet
7access and related services, if such equipment, software, or
8services are to be used primarily by the beneficiary during any
9of the years the beneficiary is enrolled at an eligible
10educational institution, except that, such expenses shall not
11include expenses for computer software designed for sports,
12games, or hobbies, unless the software is predominantly
13educational in nature; and (iv) room and board expenses
14incurred while attending an eligible educational institution
15at least half-time; and (v) any qualified higher education
16expense, as that term is used in subsection (c) of Section 529
17of the federal Internal Revenue Code. "Eligible educational
18institutions", as used in this Section, means public and
19private colleges, junior colleges, graduate schools, and
20certain vocational institutions that are described in Section
21481 of the Higher Education Act of 1965 (20 U.S.C. 1088) and
22that are eligible to participate in Department of Education
23student aid programs. A student shall be considered to be
24enrolled at least half-time if the student is enrolled for at
25least half the full-time academic workload for the course of
26study the student is pursuing as determined under the standards

 

 

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1of the institution at which the student is enrolled.
2    (b) Establishment of the Pool. The State Treasurer may
3establish and administer a College Savings Pool as a qualified
4tuition program under Section 529 of the Internal Revenue Code.
5The Pool may consist of one or more college savings programs.
6The State Treasurer, in administering the College Savings Pool,
7may receive, hold, and invest moneys paid into the Pool and
8perform such other actions as are necessary to ensure that the
9Pool operates as a qualified tuition program in accordance with
10Section 529 of the Internal Revenue Code.
11    (c) Administration of the College Savings Pool. The State
12Treasurer may engage one or more financial institutions to
13handle the overall administration, investment management,
14recordkeeping, and marketing of the programs in the College
15Savings Pool. The contributions deposited in the Pool, and any
16earnings thereon, shall not constitute property of the State or
17be commingled with State funds and the State shall have no
18claim to or against, or interest in, such funds.
19    (d) Availability of the College Savings Pool. The State
20Treasurer may permit persons, including trustees of trusts and
21custodians under a Uniform Transfers to Minors Act or Uniform
22Gifts to Minors Act account, and certain legal entities to be
23account owners, including as part of a scholarship program,
24provided that: (1) an individual, trustee or custodian must
25have a valid social security number or taxpayer identification
26number, be at least 18 years of age, and have a valid United

 

 

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1States street address; and (2) a legal entity must have a valid
2taxpayer identification number and a valid United States street
3address. Both in-state and out-of-state persons may be account
4owners and donors, and both in-state and out-of-state
5individuals may be designated beneficiaries in the College
6Savings Pool.
7    (e) Fees. The State Treasurer shall establish fees to be
8imposed on accounts to recover the costs of administration,
9recordkeeping, and investment management. The Treasurer must
10use his or her best efforts to keep these fees as low as
11possible and consistent with administration of high quality
12competitive college savings programs.
13    (f) Investments in the State. To enhance the safety and
14liquidity of the College Savings Pool, to ensure the
15diversification of the investment portfolio of the College
16Savings Pool, and in an effort to keep investment dollars in
17the State of Illinois, the State Treasurer may make a
18percentage of each account available for investment in
19participating financial institutions doing business in the
20State.
21    (g) Investment policy. The Treasurer shall develop,
22publish, and implement an investment policy covering the
23investment of the moneys in each of the programs in the College
24Savings Pool. The policy shall be published each year as part
25of the audit of the College Savings Pool by the Auditor
26General, which shall be distributed to all account owners in

 

 

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1such program. The Treasurer shall notify all account owners in
2such program in writing, and the Treasurer shall publish in a
3newspaper of general circulation in both Chicago and
4Springfield, any changes to the previously published
5investment policy at least 30 calendar days before implementing
6the policy. Any investment policy adopted by the Treasurer
7shall be reviewed and updated if necessary within 90 days
8following the date that the State Treasurer takes office.
9    (h) Investment restrictions. An account owner may,
10directly or indirectly, direct the investment of any
11contributions to the College Savings Pool (or any earnings
12thereon) only as provided in Section 529(b)(4) of the Internal
13Revenue Code. Donors and designated beneficiaries, in those
14capacities, may not, directly or indirectly, direct the
15investment of any contributions to the Pool (or any earnings
16thereon).
17    (i) Distributions. Distributions from an account in the
18College Savings Pool may be used for the designated
19beneficiary's qualified expenses. Funds contained in a College
20Savings Pool account may be rolled over into an eligible ABLE
21account, as defined in Section 16.6 of this Act, to the extent
22permitted by Section 529(c)(3)(C) of the Internal Revenue Code.
23To the extent a nonqualified withdrawal is made from an
24account, the earnings portion of such distribution may be
25treated by the Internal Revenue Service as income subject to
26income tax and a 10% federal penalty tax. Internet

 

 

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1    Distributions made from the College Savings Pool may be
2made directly to the educational institution, directly to a
3vendor, in the form of a check payable to both the designated
4beneficiary and the institution or vendor, directly to the
5designated beneficiary or account owner, or in any other manner
6that is permissible under Section 529 of the Internal Revenue
7Code.
8    (j) Contributions. Contributions to the College Savings
9Pool shall be as follows:
10        (1) Contributions to an account in the College Savings
11    Pool may be made only in cash.
12        (2) The Treasurer shall limit the contributions that
13    may be made to the College Savings Pool on behalf of a
14    designated beneficiary, as required under Section 529 of
15    the Internal Revenue Code, to prevent contributions for the
16    benefit of a designated beneficiary in excess of those
17    necessary to provide for the qualified expenses of the
18    designated beneficiary. The Pool shall not permit any
19    additional contributions to an account as soon as the
20    aggregate accounts for the designated beneficiary in the
21    Pool reach a specified account balance limit applicable to
22    all designated beneficiaries.
23        (3) The contributions made on behalf of a designated
24    beneficiary who is also a beneficiary under the Illinois
25    Prepaid Tuition Program shall be further restricted to
26    ensure that the contributions in both programs combined do

 

 

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1    not exceed the limit established for the College Savings
2    Pool.
3    (k) Illinois Student Assistance Commission. The Treasurer
4shall provide the Illinois Student Assistance Commission each
5year at a time designated by the Commission, an electronic
6report of all account owner accounts in the Treasurer's College
7Savings Pool, listing total contributions and disbursements
8from each individual account during the previous calendar year.
9As soon thereafter as is possible following receipt of the
10Treasurer's report, the Illinois Student Assistance Commission
11shall, in turn, provide the Treasurer with an electronic report
12listing those College Savings Pool account owners who also
13participate in the State's prepaid tuition program,
14administered by the Commission. The Commission shall be
15responsible for filing any combined tax reports regarding State
16qualified savings programs required by the United States
17Internal Revenue Service.
18    The Treasurer shall work with the Illinois Student
19Assistance Commission to coordinate the marketing of the
20College Savings Pool and the Illinois Prepaid Tuition Program
21when considered beneficial by the Treasurer and the Director of
22the Illinois Student Assistance Commission. The Treasurer
23shall provide a separate accounting for each designated
24beneficiary to each account owner.
25    (l) Prohibition; exemption. No interest in the program, or
26any portion thereof, may be used as security for a loan. Moneys

 

 

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1held in an account invested in the College Savings Pool shall
2be exempt from all claims of the creditors of the account
3owner, donor, or designated beneficiary of that account, except
4for the non-exempt College Savings Pool transfers to or from
5the account as defined under subsection (j) of Section 12-1001
6of the Code of Civil Procedure.
7    (m) Taxation. The assets of the College Savings Pool and
8its income and operation shall be exempt from all taxation by
9the State of Illinois and any of its subdivisions. The accrued
10earnings on investments in the Pool once disbursed on behalf of
11a designated beneficiary shall be similarly exempt from all
12taxation by the State of Illinois and its subdivisions, so long
13as they are used for qualified expenses. Contributions to a
14College Savings Pool account during the taxable year may be
15deducted from adjusted gross income as provided in Section 203
16of the Illinois Income Tax Act. The provisions of this
17paragraph are exempt from Section 250 of the Illinois Income
18Tax Act.
19    (n) Rules. The Treasurer shall adopt rules he or she
20considers necessary for the efficient administration of the
21College Savings Pool. The rules shall provide whatever
22additional parameters and restrictions are necessary to ensure
23that the College Savings Pool meets all of the requirements for
24a qualified state tuition program under Section 529 of the
25Internal Revenue Code.
26    The rules shall provide for the administration expenses of

 

 

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1the Pool to be paid from its earnings and for the investment
2earnings in excess of the expenses to be credited at least
3monthly to the account owners in the Pool in a manner which
4equitably reflects the differing amounts of their respective
5investments in the Pool and the differing periods of time for
6which those amounts were in the custody of the Pool.
7    The rules shall require the maintenance of records that
8enable the Treasurer's office to produce a report for each
9account in the Pool at least annually that documents the
10account balance and investment earnings.
11    Notice of any proposed amendments to the rules and
12regulations shall be provided to all account owners prior to
13adoption. Amendments to rules and regulations shall apply only
14to contributions made after the adoption of the amendment.
15    (o) Bond. The State Treasurer shall give bond with at least
16one surety, payable to and for the benefit of the account
17owners in the College Savings Pool, in the penal sum of
18$10,000,000, conditioned upon the faithful discharge of his or
19her duties in relation to the College Savings Pool.
20(Source: P.A. 99-143, eff. 7-27-15; 100-161, eff. 8-18-17;
21100-863, eff. 8-14-18; 100-905, eff. 8-17-18; revised
2210-18-18.)
 
23    (15 ILCS 505/16.6)
24    Sec. 16.6. ABLE account program.
25    (a) As used in this Section:

 

 

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1    "ABLE account" or "account" means an account established
2for the purpose of financing certain qualified expenses of
3eligible individuals as specifically provided for in this
4Section and authorized by Section 529A of the Internal Revenue
5Code.
6    "ABLE account plan" or "plan" means the savings account
7plan provided for in this Section.
8    "Account administrator" means the person selected by the
9State Treasurer to administer the daily operations of the ABLE
10account plan and provide marketing, recordkeeping, investment
11management, and other services for the plan.
12    "Aggregate account balance" means the amount in an account
13on a particular date or the fair market value of an account on
14a particular date.
15    "Beneficiary" means the ABLE account owner.
16    "Board" means the Illinois State Board of Investment.
17    "Contracting state" means a state without a qualified ABLE
18program which has entered into a contract with Illinois to
19provide residents of the contracting state access to a
20qualified ABLE program.
21    "Designated representative" means a person who is
22authorized to act on behalf of an account owner. An account
23owner is authorized to act on his or her own behalf unless the
24account owner is a minor or the account owner has been
25adjudicated to have a disability so that a guardian has been
26appointed. A designated representative acts in a fiduciary

 

 

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1capacity to the account owner. The State Treasurer shall
2recognize a person as a designated representative without
3appointment by a court in the following order of priority:
4        (1) The account owner's plenary guardian of the estate,
5    or the account owner's limited guardian of financial or
6    contractual matters. Any guardian acting in this capacity
7    shall not be required to seek court approval for any ABLE
8    qualified distributions.
9        (2) The agent named by the account owner in a property
10    power of attorney recognized as a statutory short form
11    power of attorney for property.
12        (3) Such individual or entity that the account owner so
13    designates in writing, in a manner to be established by the
14    State Treasurer.
15        (4) Such other individual or entity designated by the
16    State Treasurer pursuant to its rules.
17    "Disability certification" has the meaning given to that
18term under Section 529A of the Internal Revenue Code.
19    "Eligible individual" has the meaning given to that term
20under Section 529A of the Internal Revenue Code.
21    "Participation agreement" means an agreement to
22participate in the ABLE account plan between an account owner
23and the State, through its agencies and the State Treasurer.
24    "Qualified disability expenses" has the meaning given to
25that term under Section 529A of the Internal Revenue Code.
26    "Qualified withdrawal" or "qualified distribution" means a

 

 

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1withdrawal from an ABLE account to pay the qualified disability
2expenses of the beneficiary of the account.
3    (b) The "Achieving a Better Life Experience" or "ABLE"
4account program is hereby created and shall be administered by
5the State Treasurer. The purpose of the ABLE plan is to
6encourage and assist individuals and families in saving private
7funds for the purpose of supporting individuals with
8disabilities to maintain health, independence, and quality of
9life, and to provide secure funding for disability-related
10expenses on behalf of designated beneficiaries with
11disabilities that will supplement, but not supplant, benefits
12provided through private insurance, federal and State medical
13and disability insurance, the beneficiary's employment, and
14other sources. Under the plan, a person may make contributions
15to an ABLE account to meet the qualified disability expenses of
16the designated beneficiary of the account. The plan must be
17operated as an accounts-type plan that permits persons to save
18for qualified disability expenses incurred by or on behalf of
19an eligible individual.
20    The State Treasurer shall promote awareness of the
21availability and advantages of the ABLE account plan as a way
22to assist individuals and families in saving private funds for
23the purpose of supporting individuals with disabilities. The
24cost of these promotional efforts shall not be funded with fees
25imposed on participants by the State Treasurer.
26    The State Treasurer shall not accept contributions for ABLE

 

 

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1accounts under this Section until the Internal Revenue Service
2has issued its final regulations or interim guidance concerning
3ABLE accounts.
4    A separate account must be maintained for each beneficiary
5for whom contributions are made, and no more than one account
6shall be established per beneficiary. If an ABLE account is
7established for a designated beneficiary, no account
8subsequently established for such beneficiary shall be treated
9as an ABLE account. The preceding sentence shall not apply in
10the case of an ABLE account established for purposes of a
11rollover as permitted under Section 529A of the Internal
12Revenue Code.
13    An ABLE account may be established under this Section for a
14designated beneficiary who is a resident of Illinois, a
15resident of a contracting state, or a resident of any other
16state.
17    Prior to the establishment of an ABLE account, an account
18owner must provide documentation to the State Treasurer that
19the account beneficiary is an eligible individual.
20    Annual contributions to an ABLE account on behalf of a
21beneficiary are subject to the requirements of subsection (b)
22of Section 529A of the Internal Revenue Code. No person may
23make a contribution to an ABLE account if such a contribution
24would result in the aggregate account balance of an ABLE
25account exceeding the account balance limit authorized under
26Section 529A of the Internal Revenue Code. The Treasurer shall

 

 

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1review the contribution limit at least annually.
2    The State Treasurer shall administer the plan, including
3accepting and processing applications, maintaining account
4records, making payments, and undertaking any other necessary
5tasks to administer the plan, including the appointment of an
6account administrator. The State Treasurer may contract with
7one or more third parties to carry out some or all of these
8administrative duties, including, but not limited to,
9providing investment management services, incentives, and
10marketing the plan.
11    In designing and establishing the plan's requirements and
12in negotiating or entering into contracts with third parties
13under this Section, the State Treasurer shall consult with the
14Board. The State Treasurer shall establish fees to be imposed
15on participants to recover the costs of administration,
16recordkeeping, and investment management. The State Treasurer
17must use his or her best efforts to keep these fees as low as
18possible, consistent with efficient administration.
19    Funds contained in a College Savings Pool account
20established under Section 16.5 may be rolled over into an
21eligible ABLE account to the extent permitted by Section
22529(c)(3)(C) of the Internal Revenue Code.
23    The Illinois ABLE Accounts Administrative Fund is created
24as a nonappropriated trust fund in the State treasury. The
25State Treasurer shall use moneys in the Administrative Fund to
26pay for administrative expenses he or she incurs in the

 

 

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1performance of his or her duties under this Section. The State
2Treasurer shall use moneys in the Administrative Fund to cover
3administrative expenses incurred under this Section. The
4Administrative Fund may receive any grants or other moneys
5designated for administrative purposes from the State, or any
6unit of federal, state, or local government, or any other
7person, firm, partnership, or corporation. Any interest
8earnings that are attributable to moneys in the Administrative
9Fund must be deposited into the Administrative Fund. Any fees
10established by the State Treasurer to recover the costs of
11administration, recordkeeping, and investment management shall
12be deposited into the Administrative Fund.
13    Subject to appropriation, the State Treasurer may pay
14administrative costs associated with the creation and
15management of the plan until sufficient assets are available in
16the Administrative Fund for that purpose.
17    Applications for accounts, account owner data, account
18data, and data on beneficiaries of accounts are confidential
19and exempt from disclosure under the Freedom of Information
20Act.
21    (c) The State Treasurer may invest the moneys in ABLE
22accounts in the same manner and in the same types of
23investments provided for the investment of moneys by the Board.
24To enhance the safety and liquidity of ABLE accounts, to ensure
25the diversification of the investment portfolio of accounts,
26and in an effort to keep investment dollars in the State, the

 

 

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1State Treasurer may make a percentage of each account available
2for investment in participating financial institutions doing
3business in the State, except that the accounts may be invested
4without limit in investment options from open-ended investment
5companies registered under Section 80a of the federal
6Investment Company Act of 1940. The State Treasurer may
7contract with one or more third parties for investment
8management, recordkeeping, or other services in connection
9with investing the accounts.
10    The account administrator shall annually prepare and adopt
11a written statement of investment policy that includes a risk
12management and oversight program. The risk management and
13oversight program shall be designed to ensure that an effective
14risk management system is in place to monitor the risk levels
15of the ABLE plan, to ensure that the risks taken are prudent
16and properly managed, to provide an integrated process for
17overall risk management, and to assess investment returns as
18well as risk to determine if the risks taken are adequately
19compensated compared to applicable performance benchmarks and
20standards.
21    The State Treasurer may enter into agreements with other
22states to either allow Illinois residents to participate in a
23plan operated by another state or to allow residents of other
24states to participate in the Illinois ABLE plan.
25    (d) The State Treasurer shall ensure that the plan meets
26the requirements for an ABLE account under Section 529A of the

 

 

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1Internal Revenue Code. The State Treasurer may request a
2private letter ruling or rulings from the Internal Revenue
3Service and must take any necessary steps to ensure that the
4plan qualifies under relevant provisions of federal law.
5Notwithstanding the foregoing, any determination by the
6Secretary of the Treasury of the United States that an account
7was utilized to make non-qualified distributions shall not
8result in an ABLE account being disregarded as a resource.
9    A person may make contributions to an ABLE account on
10behalf of a beneficiary. Contributions to an account made by
11persons other than the account owner become the property of the
12account owner. Contributions to an account shall be considered
13as a transfer of assets for fair market value. A person does
14not acquire an interest in an ABLE account by making
15contributions to an account. A contribution to any account for
16a beneficiary must be rejected if the contribution would cause
17either the aggregate or annual account balance of the account
18to exceed the limits imposed by Section 529A of the Internal
19Revenue Code.
20    Any change in account owner must be done in a manner
21consistent with Section 529A of the Internal Revenue Code.
22    Notice of any proposed amendments to the rules and
23regulations shall be provided to all owners or their designated
24representatives prior to adoption. Amendments to rules and
25regulations shall apply only to contributions made after the
26adoption of the amendment. Amendments to this Section

 

 

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1automatically amend the participation agreement. Any
2amendments to the operating procedures and policies of the plan
3shall automatically amend the participation agreement after
4adoption by the State Treasurer.
5    All assets of the plan, including any contributions to
6accounts, are held in trust for the exclusive benefit of the
7account owner and shall be considered spendthrift accounts
8exempt from all of the owner's creditors. The plan shall
9provide separate accounting for each designated beneficiary
10sufficient to satisfy the requirements of paragraph (3) of
11subsection (b) of Section 529A of the Internal Revenue Code.
12Assets must be held in either a state trust fund outside the
13State treasury, to be known as the Illinois ABLE plan trust
14fund, or in accounts with a third-party provider selected
15pursuant to this Section. Amounts contributed to ABLE accounts
16shall not be commingled with State funds and the State shall
17have no claim to or against, or interest in, such funds.
18    Plan assets are not subject to claims by creditors of the
19State and are not subject to appropriation by the State.
20Payments from the Illinois ABLE account plan shall be made
21under this Section.
22    The assets of ABLE accounts and their income may not be
23used as security for a loan.
24    The assets of ABLE accounts and their income and operation
25shall be exempt from all taxation by the State of Illinois and
26any of its subdivisions to the extent exempt from federal

 

 

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1income taxation. The accrued earnings on investments in an ABLE
2account once disbursed on behalf of a designated beneficiary
3shall be similarly exempt from all taxation by the State of
4Illinois and its subdivisions to the extent exempt from federal
5income taxation, so long as they are used for qualified
6expenses.
7    Notwithstanding any other provision of law that requires
8consideration of one or more financial circumstances of an
9individual, for the purpose of determining eligibility to
10receive, or the amount of, any assistance or benefit authorized
11by such provision to be provided to or for the benefit of such
12individual, any amount, including earnings thereon, in the ABLE
13account of such individual, any contributions to the ABLE
14account of the individual, and any distribution for qualified
15disability expenses shall be disregarded for such purpose with
16respect to any period during which such individual maintains,
17makes contributions to, or receives distributions from such
18ABLE account.
19    (e) The account owner or the designated representative of
20the account owner may request that a qualified distribution be
21made for the benefit of the account owner. Qualified
22distributions shall be made for qualified disability expenses
23allowed pursuant to Section 529A of the Internal Revenue Code.
24Qualified distributions must be withdrawn proportionally from
25contributions and earnings in an account owner's account on the
26date of distribution as provided in Section 529A of the

 

 

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1Internal Revenue Code. Unless prohibited by federal law, upon
2the death of a designated beneficiary, proceeds from an account
3may be transferred to the estate of a designated beneficiary,
4or to an account for another eligible individual specified by
5the designated beneficiary or the estate of the designated
6beneficiary. An agency or instrumentality of the State may not
7seek payment under subsection (f) of Section 529A of the
8federal Internal Revenue Code from the account or its proceeds
9for benefits provided to a designated beneficiary.
10    (f) The State Treasurer may adopt rules to carry out the
11purposes of this Section. The State Treasurer shall further
12have the power to issue peremptory rules necessary to ensure
13that ABLE accounts meet all of the requirements for a qualified
14state ABLE program under Section 529A of the Internal Revenue
15Code and any regulations issued by the Internal Revenue
16Service.
17(Source: P.A. 99-145, eff. 1-1-16; 99-563, eff. 7-15-16;
18100-713, eff. 8-3-18.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.