AB731-ASA1,3,42
15.105
(25p) ABLE savings program board. There is created in the department
3of administration an ABLE savings program board. The board shall consist of all of
4the following members:
AB731-ASA1,3,55
(a) The secretary of administration or his or her designee.
AB731-ASA1,3,66
(b) The chairperson of the investment board or his or her designee.
AB731-ASA1,3,77
(c) A representative of the board for people with developmental disabilities.
AB731-ASA1,3,88
(d) Four other members, appointed for 4-year terms.
AB731-ASA1,1b
9Section 1b. 16.257 of the statutes is created to read:
AB731-ASA1,3,12
1016.257 ABLE savings program vendor. (1) The department shall
11determine the factors to be considered in selecting a vendor of the ABLE savings
12program under s. 16.643, which factors shall include all of the following:
AB731-ASA1,3,1313
(a) The person's ability to satisfy record-keeping and reporting requirements.
AB731-ASA1,3,1414
(b) The fees, if any, that the person proposes to charge account owners.
AB731-ASA1,3,1615
(c) The person's plan for promoting the ABLE savings program and the
16investment that the person is willing to make to promote the program.
AB731-ASA1,3,1817
(d) The minimum initial contribution or minimum contributions that the
18person will require.
AB731-ASA1,3,1919
(e) The ability and willingness of the person to accept electronic contributions.
AB731-ASA1,3,2120
(f) The ability of the person to augment the ABLE savings program with
21additional, beneficial services related to the program.
AB731-ASA1,3,25
22(2) The department shall solicit competitive sealed proposals under s. 16.75
23(2m) from nongovernmental persons to serve as vendor of the ABLE savings
24program. The department shall select the vendor based upon factors determined by
25the department under sub. (1).
AB731-ASA1,4,2
1(3) The contract between the department and the vendor shall ensure all of the
2following:
AB731-ASA1,4,43
(a) That the vendor reimburses the state for all administrative costs that the
4state incurs for the ABLE savings program.
AB731-ASA1,4,75
(b) That a firm of certified public accountants selected by the vendor annually
6audits the ABLE savings program and provides a copy of the audit to the ABLE
7savings program board.
AB731-ASA1,4,128
(c) That each account owner receives a quarterly statement that identifies the
9contributions to the owner's ABLE savings account during the preceding quarter, the
10total contributions to and the value of the owner's ABLE savings account through the
11end of the preceding quarter, and any distributions made during the preceding
12quarter.
AB731-ASA1,4,1413
(d) That the vendor communicate to the beneficiary and account owner the
14provisions of s. 16.643 (3) to (5).
AB731-ASA1,1c
15Section 1c. 16.642 (title) of the statutes is amended to read:
AB731-ASA1,4,17
1616.642 (title)
Repayment College savings program; repayment to the
17general fund.
AB731-ASA1,4,21
2016.643 (title)
Support accounts ABLE savings program for individuals
21with disabilities.
AB731-ASA1,4,2524
16.643
(1) (am) "Account owner" means an individual who establishes, and
25owns, an account under this section
and who is one of the following:.
AB731-ASA1,1h
5Section 1h. 16.643 (1) (ag) of the statutes is created to read:
AB731-ASA1,5,76
16.643
(1) (ag) "ABLE savings program" has the meaning given for "qualified
7ABLE program" under
26 USC 529A (b) (1).
AB731-ASA1,5,1110
16.643
(1) (b) "Beneficiary" means an eligible individual
for whom who has
11established an account
is established under this section.
AB731-ASA1,1j
12Section 1j. 16.643 (1) (bm) of the statutes is created to read:
AB731-ASA1,5,1313
16.643
(1) (bm) "Board" means the ABLE savings program board.
AB731-ASA1,5,1716
16.643
(1) (c) "Eligible individual" has the meaning given in
26 USC 529A (e)
17(1).
AB731-ASA1,5,2420
16.643
(1) (d) "Financial institution" means any bank, savings bank, savings
21and loan association,
or credit union
, investment company, investment trust, trust
22company, insurance company, insurance association, or other person carrying on a
23banking or insurance business that is authorized to do business under state or
24federal laws relating to financial institutions.
AB731-ASA1,6,43
16.643
(1) (e) "Qualified expenses" has the meaning given for "qualified
4disability expenses" under
26 USC 529A (e) (5).
AB731-ASA1,1n
5Section 1n. 16.643 (2m) of the statutes is created to read:
AB731-ASA1,6,66
16.643
(2m) Duties of the board. The board shall do all of the following:
AB731-ASA1,6,97
(a) Ensure that the program under this section meets the requirements of a
8qualified ABLE program under
26 USC 529A and all other requirements applicable
9to the program under any other state or federal law, rule, or regulation.
AB731-ASA1,6,1110
(b) Establish investment guidelines for contributions to and the earnings on
11accounts established under this section.
AB731-ASA1,6,1512
(c) Seek rulings and guidance from the U.S. department of the treasury, the
13internal revenue service, the securities and exchange commission, and the social
14security administration to ensure the proper implementation and administration of
15the program under this section.
AB731-ASA1,6,1816
(d) Ensure that if the department changes vendors the balances of accounts
17established under this section are promptly transferred into investment
18instruments as similar to the original investment instruments as possible.
AB731-ASA1,6,2219
(e) Keep personal and financial information pertaining to a beneficiary closed
20to the public, except that the board may release to the appropriate state agency
21information necessary in determining a beneficiary's eligibility for any of the
22long-term care programs specified under sub. (5).
AB731-ASA1,7,3
116.643
(3) (a) 2. Change the beneficiary of an account to a
member of the family
2member, as defined in
26 USC 529A (e) (4), of the previous beneficiary, if the new
3beneficiary is an eligible individual.
AB731-ASA1,7,86
16.643
(3) (a) 3. Directly or indirectly, direct the investment of any
7contributions to the account owner's account and any earning on those contributions
8no more than 2 times in any calendar year.
AB731-ASA1,7,1811
16.643
(3) (d) Upon the death of
the beneficiary who is the account owner the
12account shall terminate, and upon the termination of an account
as described in par.
13(a) 3., any amount remaining in the account shall be recoverable by the state under
14s. 49.849 as property of a decedent is recoverable under that statute. Any amount
15that remains in the account following such recovery under s. 49.849 shall be paid to
16the account owner's estate. Recovery authorized under this paragraph may relate
17only to public assistance received by
a beneficiary
an account owner on and after the
18date on which an account is established under this section.
AB731-ASA1,1r
19Section 1r. 16.644 of the statutes is created to read:
AB731-ASA1,7,25
2016.644 ABLE savings program; repayment to the general fund. (1) The
21secretary shall transfer from the ABLE savings program trust fund to the general
22fund an amount equal to the amount expended from the appropriation under s.
2320.505 (1) (am) when the secretary determines that moneys in that trust fund are
24sufficient to make the transfer. The secretary may make the transfer in
25installments.
AB731-ASA1,8,3
1(2) Annually, by June 1, the secretary shall submit a report to the joint
2committee on finance on the amount available for repayment under sub. (1), the
3amount repaid under sub. (1), and the outstanding balance under sub. (1).
AB731-ASA1,1s
4Section 1s. 20.005 (3) (schedule) of the statutes: at the appropriate place,
5insert the following amounts for the purposes indicated:
-
See PDF for table ![PDF](http://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
AB731-ASA1,1t
6Section 1t. 20.505 (1) (am) of the statutes is created to read:
AB731-ASA1,8,97
20.505
(1) (am)
Administrative expenses; ABLE savings program. The
8amounts in the schedule for the administrative expenses of the ABLE savings
9program under s. 16.643, including the expense of promoting the program.
AB731-ASA1,1u
10Section 1u. 20.505 (1) (tr) of the statutes is created to read:
AB731-ASA1,8,1311
20.505
(1) (tr)
Payment of qualified disability expenses; ABLE savings program
12trust fund. From the ABLE savings program trust fund, a sum sufficient for the
13payment of qualified disability expenses under s. 16.643 (4).
AB731-ASA1,1v
14Section 1v. 20.505 (1) (tt) of the statutes is created to read:
AB731-ASA1,9,215
20.505
(1) (tt)
Administrative expenses; ABLE savings program. From the
16ABLE savings program trust fund, the amounts in the schedule for the
1administrative expenses of the ABLE savings program under s. 16.643, including the
2expense of promoting the program.
AB731-ASA1,1w
3Section 1w. 25.14 (1) (a) 20. of the statutes is created to read:
AB731-ASA1,9,44
25.14
(1) (a) 20. The ABLE savings program trust fund.
AB731-ASA1,1x
5Section 1x. 25.17 (1) (ab) of the statutes is created to read:
AB731-ASA1,9,76
25.17
(1) (ab) ABLE savings program trust fund (s. 25.86), but subject to sub.
7(2) (fm).
AB731-ASA1,1y
8Section 1y. 25.17 (2) (fm) of the statutes is created to read:
AB731-ASA1,9,159
25.17
(2) (fm) Invest the moneys belonging to the ABLE savings program trust
10fund in a manner consistent with the guidelines established under s. 16.643 (2m) (b),
11unless the moneys are under the management and control of a vendor selected under
12s. 16.257. In making investments under this paragraph, the investment board shall
13accept any reasonable terms and conditions that the ABLE savings program board
14specifies and is relieved of any obligations relevant to prudent investment of the
15fund, including the standard of responsibility under s. 25.15 (2).
AB731-ASA1,1z
16Section 1z. 25.86 of the statutes is created to read:
AB731-ASA1,9,21
1725.86 ABLE savings program trust fund. There is established a separate
18nonlapsible trust fund designated as the ABLE savings program trust fund,
19consisting of all revenue from enrollment fees for and contributions to accounts
20established under s. 16.643 and from distributions and fees paid by the vendor under
21s. 16.257 (3).
AB731-ASA1,9,2524
71.05
(6) (a) 27. Except as provided in subd. 28., any accumulated interest,
25dividends, or other gain that accrues from an account described under s. 16.643
or
1established under a qualified ABLE program, as described under section 529A (b) (1)
2of the Internal Revenue Code, during the taxable year in which a withdrawal occurs
3from such an account if any amount of the money or other assets in the account is
4withdrawn by, or at the direction of, an account owner for any reason other than the
5payment of qualified
disability expenses, as defined in
s. 16.643 (1) (e) section 529A
6(e) (5) of the Internal Revenue Code, for the account beneficiary.
AB731-ASA1,10,129
71.05
(6) (a) 28. Upon the termination of an account
as described under s.
1016.643 (3) (d)
, or an account that is part of a qualified ABLE program under section
11529A of the Internal Revenue Code, any amount in the account that is returned to
12an account owner, or an account owner's estate.
AB731-ASA1,10,2015
71.05
(6) (b) 52. Subject to the limits under s. 16.643 (3) (c) 1. and 2.
or section
16529A (b) (2) of the Internal Revenue Code, any amount that is deposited by an
17account owner or any other person into an
ABLE account described under s. 16.643
18or section 529A (b) (1) of the Internal Revenue Code, and any interest, dividends, or
19other gain that accrues in the account if the interest, dividends, or other gain is
20redeposited into the account.
AB731-ASA1,11,223
71.07
(5) (a) 9. The amount claimed as a deduction for unreimbursed medical
24expenses under section
213 (a) of the Internal Revenue Code to the extent that the
25funds used to pay for the unreimbursed expenses for which the deduction was
1claimed were withdrawn from an
ABLE account described under s. 16.643
or section
2529A (b) (1) of the Internal Revenue Code.
AB731-ASA1,11,94
(1)
ABLE savings program board; initial terms. Notwithstanding section
515.105 (25p) (d) of the statutes, as created by this act, of the initial members
6appointed to the ABLE savings program board under section 15.105 (25p) (d) of the
7statutes, as created by this act, the term of one of those members expires on July 1,
82019, the term of one of those members expires on July 1, 2018, and the term of one
9of those members expires on July 1, 2017.
AB731-ASA1,11,1410
(2)
ABLE savings program board; position authorizations. The authorized
11FTE positions for the department of administration are increased by 2.0 GPR
12positions on July 1, 2016, to be funded from the appropriation under section 20.505
13(1) (am) of the statutes, as created by this act, for the purpose of administering the
14ABLE savings program.
AB731-ASA1,11,2116
(1) The treatment of sections 71.05 (6) (a) 27. and 28. and (b) 52. and 71.07 (5)
17(a) 9. of the statutes first applies to taxable years beginning on January 1 of the year
18in which this subsection takes effect, except that if this subsection takes effect after
19July 31, the treatment of sections 71.05 (6) (a) 27. and 28. and (b) 52. and 71.07 (5)
20(a) 9. of the statutes first applies to taxable years beginning on January 1 of the year
21following the year in which this subsection takes effect.