AB 62 — Revises provisions relating to the Nevada ABLE Savings Program. (BDR 38-397)

A.B.Assembly Bill No.

6262–Committee Aon SSEMBLYHealth BILLand NOHuman .Services CHAPTER..........

62–COMMITTEE ON H EALTH AND HUMAN SERVICES (ON B EHALF OF THE STATE TREASURER ) PREFILED N OVEMBER 18, 2020 ____________ Referred to Committee on Health and Human Services SUMMARY—Revises provisions relating to the Nevada ABLE Savings Program.

(BDR 38-397) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Federal law provides for the establishment and maintenance of programs by createdstates forknown personsas whoABLE haveprograms, certainunder qualifyingwhich disabilities.tax-advantaged savings accounts are limitations in federal law, any person, including family members, may make atain contribution to such an account and any interest or other growth in the value of the account and distributions taken from the account are tax free.

SubjectUnder to certain limitations in federal law, anydistributions person,from includingthe familyaccount members, may makeonly abe contributionused to suchpay anexpenses accountrelated andto anyliving interesta orlife otherwith growtha indisability theand valuemay ofinclude thesuch accountthings andas distributionseducation, takenhousing, fromtransportation, theassistive accounttechnology, areand taxemployment free.training and support.

Under federal law, distributions from the account may only be used to pay expenses related to living a life with a disability and may include such things as education, housing, (Achieving a Better Life Experience Act of 2014, 26 U.S.C.

§ 529A) Existing state law requires the State Treasurer to establish or otherwise ensure the establishment of the Nevada ABLE Savings Program as a qualified program pursuant to 26 U.S.C.U.S.Existing law authorizes the State Treasurer to adopt regulations to establish and carry out the Nevada ABLE Savings Program.

§(NRS 529A.427A.889) Section 1 of this bill specifically authorizes such regulations to include procedures for the administration of the Nevada ABLE Savings Program, including:

(NRS(1) 427A.882-427A.896)a Existingprocedure lawfor authorizesenrolling thein State Treasurer to adopt regulations to establish and carry out the NevadaProgram; ABLE Savings Program.

(NRS 427A.889) Section 1 of this administration of the Nevada ABLE Savings Program, including:

(1) a procedure - *AB62* – 2 – for enrolling in the Program;

Section 1 also authorizes the State Treasurer to apply for and Nevadaaccept ABLEany Savingsgift, Program.tion,grant, donation, bequest or other source of money to carry out the ExistingNevaExisting law requires the State Treasurer to establish such accounts as he or she determines necessary to carry out his or her duties relating to the Nevada ABLE Savings Program, including:

Existing law requires the Endowment Account to be used for the deposit of any money received by the Nevada ABLE Savings Program that is not received pursuant to a savings trust agreement and, in the determination of the State Treasurer, is not necessary for the use of the Administrative Account.

Existing law authorizes the money in the Endowment Account to be expended for any purpose related to the Nevada ABLE Savings Program.

(1) any gift, grant, donation, bequest or other source of money received by the State EndowmentTreasurer Account;to carry out the Nevada ABLE Savings Program must be deposited in the - 81st Session (2021) – 2 – for contributions to savings trust accounts.wment Account may be expended EXPLANATION – Matter in bolded italics is new;

andmatter (2)between moneybrackets in[omitted thematerial] Endowmentis Accountmaterial mayto be expendedinomitted. the for contributions to savings trust accounts.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:FOLLOWS:D IN Section 1.

Section 1.

The regulations may include any other provisions not inconsistent with federal law that the State Treasurer determines are necessary for the efficient and effective administration of the Nevada ABLE Savings Program and the Trust Fund, including, wit(a) Procedures for the administration of the Nevada ABLE Savings Program, including, without limitation:

(a) Procedures for the administration of the Nevada ABLE Savings Program, including, without limitation:

- *AB62* – 3 – (2) Procedures for a person to access information regarding a savings trust account, including, without limitation, the balance in the account;

- 81st Session (2021) – 3 – [(b)] (c) A requirement that any money deposited in accordance with a savings trust agreement, and any increase in the value thereof or qualified withdrawal taken therefrom, is not subject to attachment, levy or execution by any creditor of a contributor, accountsecurity ownerfor ora designatedloan;ignated beneficiary and may not be used as security[(c)] for(d) A requirement that any money deposited in accordance with a loan;savings trust agreement, and any increase in the value thereof or qualified withdrawal taken therefrom, must not be used to calculate the personal assets of a designated beneficiary or account owner to determine eligibility for any disability, medical or other health benefits administered by this State;

[(c)] (d) A requirement that any money deposited in accordance with a savings trust agreement, and any increase in the value thereof or qualified withdrawal taken therefrom, must not be used to calculate the personal assets of a designated beneficiary or account owner to determine eligibility for any disability, medical or other health benefits administered by this State;

The State Treasurer may apply for and accept any gift, grant, donation, bequest or other source of money to carry out the NevadaNevSec. ABLE Savings Program.

Sec.2.E SNRS 427A.893 is hereby amended to read as follows:

2.

NRS 427A.893 is hereby amended to read as follows:

In carrying out the provisions of NRS 427A.882 to 427A.896, inclusive, the State Treasurer may use any administrative - *AB62* – 4 – or investment agreements or arrangements used for the Nevada College Savings Program created pursuant to NRS 353B.300 to 353B.370, inclusive, without soliciting separate proposals for assistance with the management of all or part of the Nevada ABLE Savings Program.

- 81st Session (2021) – 4 – (a) A Program Account in the Trust Fund;

and (b) An Administrative Account and an Endowment Account in the4.the State General Fund.

The4. Program Account must be used for the receipt, investment and disbursement of money pursuant to savings trust agreements.

The Program Account must be used for the receipt, agreements.and disbursement of money pursuant to savings trust 5.

H~~~~~ 21 - *AB62*81st Session (2021)