Maryland HB 354: Maryland Achieving a Better Life Experience (ABLE) Program - Account Establishment - Procedures

Bill Text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0354*

HOUSE BILL 354
O3, J1 3lr1647
HB 431/16 – HGO CF SB 343
By: Delegate Chang Delegates Chang, Pena–Melnyk, Cullison, Alston, Bagnall,
Bhandari, Chisholm, Guzzone, Hill, Hutchinson, S. Johnson, Kaiser, Kerr,
Kipke, R. Lewis, Lopez, Martinez, M. Morgan, Reilly, Rosenberg, Szeliga,
Taveras, White, and Woods
Introduced and read first time: January 26, 2023
Assigned to: Health and Government Operations
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 21, 2023

CHAPTER ______

AN ACT concerning 1

Maryland Achieving a Better Life Experience (ABLE) Program – Account 2
Establishment – Procedures 3

FOR the purpose of establishing certain procedures regarding the persons who may 4
establish or receive distributions from an ABLE account in the Maryland ABLE 5
Program for a certain eligible individual; requiring the Maryland 529 Board to adopt 6
certain procedures regarding the establishment and operation of an ABLE account 7
by a person other than a certain designated beneficiary; and generally relating to the 8
Maryland ABLE Program. 9

BY repealing and reenacting, with amendments, 10
Article – Education 11
Section 18–19C–01, 18–19C–02(d), and 18–19C–04 12
Annotated Code of Maryland 13
(2022 Replacement Volume) 14

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16

Article – Education 17

18–19C–01. 18

2 HOUSE BILL 354

(a) In this subtitle the following words have the meanings indicated. 1

(b) “ABLE account” means an account described under § 529A(e) of the Internal 2
Revenue Code. 3

(c) “ABLE account contributor” means an individual who contributes money to 4
an ABLE account described under § 529A(e) of the Internal Revenue Code. 5

(d) “ABLE account holder” means an individual who has established an account 6
described under § 529A(e) of the Internal Revenue Code and is the designated beneficiary 7
of the account. 8

(e) “Board” means the Maryland 529 Board established under § 18–1904 of this 9
title. 10

(f) “Designated beneficiary” means an individual described in § 529A(e) of the 11
Internal Revenue Code. 12

(g) “ELIGIBLE INDIVIDUAL” MEANS AN INDIVIDUAL DESCRIBED IN § 13
529A(E) OF THE INTERNAL REVENUE CODE. 14

(H) “Maryland ABLE Program” means a qualified ABLE program described in § 15
529A(b) of the Internal Revenue Code. 16

[(h)] (I) “Qualified disability expenses” means expenses described in § 529A(e) 17
of the Internal Revenue Code. 18

18–19C–02. 19

(d) (1) The Board shall adopt procedures relating to: 20

(i) Enrollment for participation in the Maryland ABLE Program; 21
[and] 22

(ii) Start–up costs incurred by the State for the development of the 23
Maryland ABLE Program with these costs to be reimbursed to the State by the Maryland 24
ABLE Program; AND 25

(III) THE ESTABLISHMENT AND OPERATION OF AN ABLE 26
ACCOUNT BY A PERSON OTHER THAN A DESIGNATED BENEFICIARY AS DESCRIBED IN 27
§ 18–19C–04 OF THIS SUBTITLE. 28

(2) The Board shall adopt any other procedures that the Board considers 29
necessary to carry out the provisions of this subtitle. 30

HOUSE BILL 354 3

18–19C–04. 1

(a) (1) An eligible individual[, as defined in § 529A(e) of the Internal Revenue 2
Code,] may participate in and benefit from the Maryland ABLE Program. 3

(2) AN ABLE ACCOUNT MAY BE ESTABLISHED ONLY FOR AN 4
ELIGIBLE INDIVIDUAL BY: 5

(I) THE ELIGIBLE INDIVIDUAL; 6

(II) A PERSON SELECTED BY THE ELIGIBLE INDIVIDUAL; OR 7

(III) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION AND 8
EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS SUBSECTION, IF AN ELIGIBLE 9
INDIVIDUAL, WHETHER A MINOR OR AN ADULT, IS UNABLE TO ESTABLISH AN ABLE 10
ACCOUNT: 11

1. THE ELIGIBLE INDIVIDUAL’S AGENT UNDER A POWER 12
OF ATTORNEY; OR 13

2. IF THE ELIGIBLE INDIVIDUAL DOES NOT HAVE A 14
POWER OF ATTORNEY, IN THE FOLLOWING ORDER, THE ELIGIBLE INDIVIDUAL’S: 15

A. CONSERVATOR OR LEGAL GUARDIAN; 16

B. SPOUSE; 17

C. PARENT; 18

D. SIBLING; 19

E. GRANDPARENT; OR 20

F. REPRESENTATIVE PAYEE APPOINTED FOR THE 21
ELIGIBLE INDIVIDUAL BY THE SOCIAL SECURITY ADMINISTRATION. 22

(3) THE BOARD MAY ACCEPT A CERTIFICATION MADE UNDER THE 23
PENALTIES OF PERJURY FROM THE PERSON SEEKING TO ESTABLISH AN ABLE 24
ACCOUNT THAT INDICATES: 25

(I) THE BASIS OF THE PERSON’S AUTHORITY TO ESTABLISH 26
THE ABLE ACCOUNT; AND 27

(II) THERE IS NO OTHER PERSON WITH A HIGHER PRIORITY TO 28
ESTABLISH THE ABLE ACCOUNT UNDER PARAGRAPH (2)(III) OF THIS SUBSECTION. 29

4 HOUSE BILL 354

(4) THE FOLLOWING INDIVIDUALS MAY NOT ESTABLISH AN ABLE 1
ACCOUNT ON BEHALF OF AN ELIGIBLE INDIVIDUAL: 2

(I) A MINOR; 3

(II) AN INDIVIDUAL AGAINST WHOM THE ELIGIBLE INDIVIDUAL 4
HAS OBTAINED A PEACE OR PROTECTIVE ORDER; 5

(III) AN INDIVIDU