Amendment ASA1-AB731

AB731-ASA1,1c Section 1c. 16.642 (title) of the statutes is amended to read:

AB731-ASA1,4,17 16.642 (title) Repayment College savings program; repayment to the general fund.

AB731-ASA1,1d Section 1d. 16.643 (title) of the statutes, as created by 2015 Wisconsin Act 55, is amended to read:

AB731-ASA1,4,21 16.643 (title) Support accounts ABLE savings program for individuals with disabilities.

AB731-ASA1,1e Section 1e. 16.643 (1) (a) (intro.) of the statutes, as created by 2015 Wisconsin Act 55, is renumbered 16.643 (1) (am) and amended to read:

AB731-ASA1,4,25 16.643 (1) (am) "Account owner" means an individual who establishes, and owns, an account under this section and who is one of the following:.

AB731-ASA1,1f Section 1f. 16.643 (1) (a) 1. of the statutes, as created by 2015 Wisconsin Act 55, is repealed.

AB731-ASA1,1g Section 1g. 16.643 (1) (a) 2. of the statutes, as created by 2015 Wisconsin Act 55, is repealed.

AB731-ASA1,1h Section 1h. 16.643 (1) (ag) of the statutes is created to read:

AB731-ASA1,5,7 16.643 (1) (ag) "ABLE savings program" has the meaning given for "qualified ABLE program" under 26 USC 529A (b) (1).

AB731-ASA1,1i Section 1i. 16.643 (1) (b) of the statutes, as created by 2015 Wisconsin Act 55, is amended to read:

AB731-ASA1,5,11 16.643 (1) (b) "Beneficiary" means an eligible individual for whom who has established an account is established under this section.

AB731-ASA1,1j Section 1j. 16.643 (1) (bm) of the statutes is created to read:

AB731-ASA1,5,13 16.643 (1) (bm) "Board" means the ABLE savings program board.

AB731-ASA1,1k Section 1k. 16.643 (1) (c) of the statutes, as created by 2015 Wisconsin Act 55, is amended to read:

AB731-ASA1,5,17 16.643 (1) (c) "Eligible individual" has the meaning given in 26 USC 529A (e) (1).

AB731-ASA1,1L Section 1L. 16.643 (1) (d) of the statutes, as created by 2015 Wisconsin Act 55, is amended to read:

AB731-ASA1,5,24 16.643 (1) (d) "Financial institution" means any bank, savings bank, savings and loan association, or credit union, investment company, investment trust, trust company, insurance company, insurance association, or other person carrying on a banking or insurance business that is authorized to do business under state or federal laws relating to financial institutions.

AB731-ASA1,1m Section 1m. 16.643 (1) (e) of the statutes, as created by 2015 Wisconsin Act 55, is amended to read:

AB731-ASA1,6,4 16.643 (1) (e) "Qualified expenses" has the meaning given for "qualified disability expenses" under 26 USC 529A (e) (5).

AB731-ASA1,1n Section 1n. 16.643 (2m) of the statutes is created to read:

AB731-ASA1,6,6 16.643 (2m) Duties of the board. The board shall do all of the following:

AB731-ASA1,6,9 (a) Ensure that the program under this section meets the requirements of a qualified ABLE program under 26 USC 529A and all other requirements applicable to the program under any other state or federal law, rule, or regulation.

AB731-ASA1,6,11 (b) Establish investment guidelines for contributions to and the earnings on accounts established under this section.

AB731-ASA1,6,15 (c) Seek rulings and guidance from the U.S. department of the treasury, the internal revenue service, the securities and exchange commission, and the social security administration to ensure the proper implementation and administration of the program under this section.

AB731-ASA1,6,18 (d) Ensure that if the department changes vendors the balances of accounts established under this section are promptly transferred into investment instruments as similar to the original investment instruments as possible.

AB731-ASA1,6,22 (e) Keep personal and financial information pertaining to a beneficiary closed to the public, except that the board may release to the appropriate state agency information necessary in determining a beneficiary's eligibility for any of the long-term care programs specified under sub. (5).

AB731-ASA1,1o Section 1o. 16.643 (3) (a) 2. of the statutes, as created by 2015 Wisconsin Act 55, is amended to read:

AB731-ASA1,7,3 16.643 (3) (a) 2. Change the beneficiary of an account to a member of the family member, as defined in 26 USC 529A (e) (4), of the previous beneficiary, if the new beneficiary is an eligible individual.

AB731-ASA1,1p Section 1p. 16.643 (3) (a) 3. of the statutes, as created by 2015 Wisconsin Act 55, is repealed and recreated to read:

AB731-ASA1,7,8 16.643 (3) (a) 3. Directly or indirectly, direct the investment of any contributions to the account owner's account and any earning on those contributions no more than 2 times in any calendar year.

AB731-ASA1,1q Section 1q. 16.643 (3) (d) of the statutes, as created by 2015 Wisconsin Act 55, is amended to read:

AB731-ASA1,7,18 16.643 (3) (d) Upon the death of the beneficiary who is the account owner the account shall terminate, and upon the termination of an account as described in par. (a) 3., any amount remaining in the account shall be recoverable by the state under s. 49.849 as property of a decedent is recoverable under that statute. Any amount that remains in the account following such recovery under s. 49.849 shall be paid to the account owner's estate. Recovery authorized under this paragraph may relate only to public assistance received by a beneficiary an account owner on and after the date on which an account is established under this section.

AB731-ASA1,1r Section 1r. 16.644 of the statutes is created to read:

AB731-ASA1,7,25 16.644 ABLE savings program; repayment to the general fund. (1) The secretary shall transfer from the ABLE savings program trust fund to the general fund an amount equal to the amount expended from the appropriation under s. 20.505 (1) (am) when the secretary determines that moneys in that trust fund are sufficient to make the transfer. The secretary may make the transfer in installments.

AB731-ASA1,8,3 (2) Annually, by June 1, the secretary shall submit a report to the joint committee on finance on the amount available for repayment under sub. (1), the amount repaid under sub. (1), and the outstanding balance under sub. (1).

AB731-ASA1,1s Section 1s. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

AB731-ASA1,1t Section 1t. 20.505 (1) (am) of the statutes is created to read:

AB731-ASA1,8,9 20.505 (1) (am) Administrative expenses; ABLE savings program. The amounts in the schedule for the administrative expenses of the ABLE savings program under s. 16.643, including the expense of promoting the program.

AB731-ASA1,1u Section 1u. 20.505 (1) (tr) of the statutes is created to read:

AB731-ASA1,8,13 20.505 (1) (tr) Payment of qualified disability expenses; ABLE savings program trust fund. From the ABLE savings program trust fund, a sum sufficient for the payment of qualified disability expenses under s. 16.643 (4).

AB731-ASA1,1v Section 1v. 20.505 (1) (tt) of the statutes is created to read:

AB731-ASA1,9,2 20.505 (1) (tt) Administrative expenses; ABLE savings program. From the ABLE savings program trust fund, the amounts in the schedule for the administrative expenses of the ABLE savings program under s. 16.643, including the expense of promoting the program.

AB731-ASA1,1w Section 1w. 25.14 (1) (a) 20. of the statutes is created to read:

AB731-ASA1,9,4 25.14 (1) (a) 20. The ABLE savings program trust fund.

AB731-ASA1,1x Section 1x. 25.17 (1) (ab) of the statutes is created to read:

AB731-ASA1,9,7 25.17 (1) (ab) ABLE savings program trust fund (s. 25.86), but subject to sub. (2) (fm).

AB731-ASA1,1y Section 1y. 25.17 (2) (fm) of the statutes is created to read:

AB731-ASA1,9,15 25.17 (2) (fm) Invest the moneys belonging to the ABLE savings program trust fund in a manner consistent with the guidelines established under s. 16.643 (2m) (b), unless the moneys are under the management and control of a vendor selected under s. 16.257. In making investments under this paragraph, the investment board shall accept any reasonable terms and conditions that the ABLE savings program board specifies and is relieved of any obligations relevant to prudent investment of the fund, including the standard of responsibility under s. 25.15 (2).

AB731-ASA1,1z Section 1z. 25.86 of the statutes is created to read:

AB731-ASA1,9,21 25.86 ABLE savings program trust fund. There is established a separate nonlapsible trust fund designated as the ABLE savings program trust fund, consisting of all revenue from enrollment fees for and contributions to accounts established under s. 16.643 and from distributions and fees paid by the vendor under s. 16.257 (3).

AB731-ASA1,2 Section 2. 71.05 (6) (a) 27. of the statutes, as created by 2015 Wisconsin Act 55, is amended to read:

AB731-ASA1,9,25 71.05 (6) (a) 27. Except as provided in subd. 28., any accumulated interest, dividends, or other gain that accrues from an account described under s. 16.643 or established under a qualified ABLE program, as described under section 529A (b) (1) of the Internal Revenue Code, during the taxable year in which a withdrawal occurs from such an account if any amount of the money or other assets in the account is withdrawn by, or at the direction of, an account owner for any reason other than the payment of qualified disability expenses, as defined in s. 16.643 (1) (e) section 529A (e) (5) of the Internal Revenue Code, for the account beneficiary.

AB731-ASA1,3 Section 3. 71.05 (6) (a) 28. of the statutes, as created by 2015 Wisconsin Act 55, is amended to read:

AB731-ASA1,10,12 71.05 (6) (a) 28. Upon the termination of an account as described under s. 16.643 (3) (d), or an account that is part of a qualified ABLE program under section 529A of the Internal Revenue Code, any amount in the account that is returned to an account owner, or an account owner's estate.

AB731-ASA1,4 Section 4. 71.05 (6) (b) 52. of the statutes, as created by 2015 Wisconsin Act 55, is amended to read:

AB731-ASA1,10,20 71.05 (6) (b) 52. Subject to the limits under s. 16.643 (3) (c) 1. and 2. or section 529A (b) (2) of the Internal Revenue Code, any amount that is deposited by an account owner or any other person into an ABLE account described under s. 16.643 or section 529A (b) (1) of the Internal Revenue Code, and any interest, dividends, or other gain that accrues in the account if the interest, dividends, or other gain is redeposited into the account.

AB731-ASA1,5 Section 5. 71.07 (5) (a) 9. of the statutes, as created by 2015 Wisconsin Act 55, is amended to read:

AB731-ASA1,11,2 71.07 (5) (a) 9. The amount claimed as a deduction for unreimbursed medical expenses under section 213 (a) of the Internal Revenue Code to the extent that the funds used to pay for the unreimbursed expenses for which the deduction was claimed were withdrawn from an ABLE account described under s. 16.643 or section 529A (b) (1) of the Internal Revenue Code.

AB731-ASA1,5m Section 5m. Nonstatutory provisions.

AB731-ASA1,11,9 (1) ABLE savings program board; initial terms. Notwithstanding section 15.105 (25p) (d) of the statutes, as created by this act, of the initial members appointed to the ABLE savings program board under section 15.105 (25p) (d) of the statutes, as created by this act, the term of one of those members expires on July 1, 2019, the term of one of those members expires on July 1, 2018, and the term of one of those members expires on July 1, 2017.

AB731-ASA1,11,14 (2) ABLE savings program board; position authorizations. The authorized FTE positions for the department of administration are increased by 2.0 GPR positions on July 1, 2016, to be funded from the appropriation under section 20.505 (1) (am) of the statutes, as created by this act, for the purpose of administering the ABLE savings program.

AB731-ASA1,6 Section 6. Initial applicability.

AB731-ASA1,11,21 (1) The treatment of sections 71.05 (6) (a) 27. and 28. and (b) 52. and 71.07 (5) (a) 9. of the statutes first applies to taxable years beginning on January 1 of the year in which this subsection takes effect, except that if this subsection takes effect after July 31, the treatment of sections 71.05 (6) (a) 27. and 28. and (b) 52. and 71.07 (5) (a) 9. of the statutes first applies to taxable years beginning on January 1 of the year following the year in which this subsection takes effect.

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