S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6397--A
    Cal. No. 28

                            I N  S E N A T E

                             January 8, 2016
                               ___________

Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Rules  --  ordered  to  a
  third  reading,  amended and ordered reprinted, retaining its place in
  the order of third reading

AN ACT to amend the mental hygiene law and the tax law, in  relation  to
  NY  ABLE  account  ownership,  contributions and distributions; and to
  repeal certain provisions of the tax law relating thereto

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivisions 2 and 3 of section 84.03 of the mental hygiene
law,  as  added  by  a  chapter  of the laws of 2015 amending the mental
hygiene law, the tax law, the social services law and the state  finance
law,  relating  to establishing the NY ABLE act, as proposed in legisla-
tive bills numbers S.4472-D and A.776-B, are amended to read as follows:
  2. "Account" or "NY ABLE account" shall  mean  an  individual  savings
account  established in accordance with the provisions of [this article]
SECTION 529A OF THE INTERNAL REVENUE CODE.
  3. "Account owner" shall mean a person who  opens  a  savings  account
pursuant  to the provisions of [this article] SECTION 529A OF THE INTER-
NAL REVENUE CODE, AS AMENDED, OR ANY REGULATIONS PROMULGATED THEREUNDER.
The account owner [may] MUST also be the designated beneficiary  of  the
account.
  S  2. Subdivisions 1 and 2 of section 84.05 of the mental hygiene law,
as added by a chapter of the laws of 2015 amending  the  mental  hygiene
law,  the  tax  law,  the social services law and the state finance law,
relating to establishing the NY ABLE act,  as  proposed  in  legislative
bills numbers S.4472-D and A.776-B, are amended to read as follows:
  1.  The  comptroller  shall  establish  a NY ABLE account plan for all
eligible individuals [and families] for the purpose of supporting  indi-
viduals  with disabilities to maintain health, independence, and quality
of life. The comptroller is hereby authorized to promulgate any and  all
rules  and  regulations necessary for the implementation of this article
in consultation with the commissioners of the  office  for  people  with

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD10067-12-6

S. 6397--A                          2

developmental  disabilities, the office of mental health, the department
of health, and the office of temporary and disability assistance.
  2.  The  comptroller may implement the NY ABLE savings account program
through use of third party vendors as administrators of  such  accounts,
and financial organizations as account depositories and managers.  Under
the  program,  ELIGIBLE individuals may establish accounts directly with
an account depository.
  S 3. Subdivisions 2 and 8 of section 84.09 of the mental hygiene  law,
as  added  by  a chapter of the laws of 2015 amending the mental hygiene
law, the tax law, the social services law and  the  state  finance  law,
relating  to  establishing  the  NY ABLE act, as proposed in legislative
bills numbers S.4472-D and A.776-B, are amended to read as follows:
  2. [A NY ABLE account may be opened by any person who desires to  save
money  for  the payment of the qualified living expenses of a designated
beneficiary. Such person who opens a NY ABLE account shall be considered
the account owner as set forth in this article.]
  (a) An application for [such] A NY ABLE account shall be in  the  form
prescribed by the program and contain the following:
  (i) the name, address and social security number or employer identifi-
cation number of the account owner;
  (ii) the designation of a designated beneficiary;
  (iii)  the  name, address and social security number of the designated
beneficiary; and
  (iv) such other information as the program may require.
  (b) The comptroller may establish a nominal fee for such application.
  8. An account owner  may  change  the  designated  beneficiary  of  an
account to another beneficiary [who is qualified under the provisions of
this  article]  ONLY  AS  PERMITTED  UNDER  SECTION 529A OF THE INTERNAL
REVENUE CODE.
  S 4. Subsection (b) of section 612 of the tax law, as added by a chap-
ter of the laws of 2015 amending the mental hygiene law,  the  tax  law,
the  social  services  law and the state finance law, relating to estab-
lishing the NY ABLE  act,  as  proposed  in  legislative  bills  numbers
S.4472-D and A.7767-B, is REPEALED.
  S  5. Paragraphs 42 and 43 of subsection (c) of section 612 of the tax
law, as added by a chapter of the  laws  of  2015  amending  the  mental
hygiene  law, the tax law, the social services law and the state finance
law, relating to establishing the NY ABLE act, as proposed  in  legisla-
tive bills numbers S.4472-D and A7767-B, are REPEALED.
  S  6.  This  act  shall  take  effect on the same date and in the same
manner as a chapter of the laws of 2015 amending the mental hygiene law,
the tax law, the social services law and the state finance law, relating
to establishing the NY  ABLE  act,  as  proposed  in  legislative  bills
numbers S.4472-D and A.7767-B, takes effect.