,,ii #aacth ,,congress #ast ,session ,s4 #cac ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #ac1 #bjac ,mr4 ,casey 7for himself1 ,mr4 ,burr1 ,mr4 ,harkin1 ,mr4 ,cardin1 ,mr4 ,rubio1 ,mr4 ,franken1 ,mr4 ,moran1 ,mr4 ,reed1 ,mr4 ,leahy1 ,mrs4 ,boxer1 ,mr4 ,brown1 ,mr4 ,sanders1 ,mr4 ,blumenthal1 ,ms4 ,baldwin1 ,mr4 ,blunt1 ,mr4 ,coons1 ,mr4 ,johanns1 and ,mrs4 ,gillibrand7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide for the tax treatment of ,,able accounts established under ,state programs for the care of family members with disabilities1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,achieving a ,better ,life ,experience ,act of #bjac or the ,,able ,act of #bjac4 #b4 ,purposes ,the purposes of this ,act are as follows3 7#a7 ,to encourage and assist individuals and families in saving private funds for the purpose of supporting individuals with disabilities to maintain health1 independence1 and quality of life4 7#b7 ,to provide secure funding for disability-related expenses on behalf of designated beneficiaries with disabilities that will supplement1 but not supplant1 benefits provided through private insurance1 the ,medicaid program under title ,,xix of the ,social ,security ,act1 the supplemental security income program under title ,,xvi of such ,act1 the beneficiary's employment1 and other sources4 #c4 ,,able ,accounts 7a7 ,establishment 7#a7 ,in general ,section #ebi of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7f7 as subsection 7g7 and by inserting after subsection 7e7 the following new subsection3 7f7 ,,able ,accounts 7#a7 ,general rules ,for purposes of any other provision of law with respect to a qualified ,,able program and an ,,able account1 except as otherwise provided in this subsection-- 7,a7 a qualified ,,able program and an ,,able account shall be treated in the same manner as a qualified tuition program and an account described in subsection 7b77#a77;,a77ii71 respectively1 are treated1 7,b7 qualified disability expenses with respect to a program or account described in subparagraph 7,a7 shall be treated in the same manner as qualified higher education expenses are treated1 and 7,c7 maximum contributions shall be no higher than the limit established by the ,state for their regular #ebi account4 7#b7 ,qualified ,,able program ,for purposes of this subsection1 the term qualified ,,able program means a program established and maintained by a ,state or agency or instrumentality thereof-- 7,a7 under which a person may make contributions to an ,,able account which is established for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account1 7,b7 which meets the requirements of the preceding subsections of this section 7as modified by this subsection71 determined by substituting-- 7i7 qualified ,,able program for qualified tuition program1 and 7ii7 ,,able account for account1 and 7,c7 which meets the other requirements of this subsection4 7#c7 ,qualified disability expenses ,for purposes of this subsection-- 7,a7 ,in general ,the term qualified disability expenses means any expenses which are made for the benefit of an individual with a disability who is a designated beneficiary4 7,b7 ,expenses included ,the following expenses shall be qualified disability expenses if such expenses are made for the benefit of an individual with a disability who is a designated beneficiary and are related to such disability3 7i7 ,education ,expenses for education1 including tuition for preschool thru post-secondary education1 which shall include higher education expenses 7as defined by subsection 7e77#c77 and expenses for books1 supplies1 and educational materials related to preschool and secondary education1 tutors1 and special education services4 7ii7 ,housing ,expenses for a primary residence1 including rent1 purchase of a primary residence or an interest in a primary residence1 mortgage payments1 real property taxes1 and utility charges4 7iii7 ,transportation ,expenses for transportation1 including the use of mass transit1 the purchase or modification of vehicles1 and moving expenses4 7iv7 ,employment support ,expenses related to obtaining and maintaining employment1 including job-related training1 assistive technology1 and personal assistance supports4 7v7 ,health1 prevention1 and wellness ,expenses for health and wellness1 including premiums for health insurance1 mental health1 medical1 vision1 and dental expenses1 habilitation and rehabilitation services1 durable medical equipment1 therapy1 respite care1 long-term services and supports1 nutritional management1 communication services and devices1 adaptive equipment1 assistive technology1 and personal assistance4 7vi7 ,miscellaneous expenses ,financial management and administrative services2 legal fees2 expenses for oversight2 monitoring2 home improvements1 and modifications1 maintenance and repairs1 at primary residence2 or funeral and burial expenses4 7vii7 ,assistive technology and personal support services ,expenses for assistive technology and personal support with respect to any item described in clauses 7i7 through 7vi74 7viii7 ,other approved expenses ,any other expenses which are approved by the ,secretary under regulations and consistent with the purposes of this section4 7,c7 ,individual with a disability 7i7 ,in general ,except as provided in clause 7ii71 an individual is an individual with a disability for a year if the individual 7regardless of age7-- 7,i7 has a medically determinable physical or mental impairment1 which results in marked and severe functional limitations1 and which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than #ab month1 or 7,,ii7 is blind4 7ii7 ,disability certification required ,an individual shall not be treated as an individual with a disability for a year unless the individual-- 7,i7 is receiving 7or1 for purposes of title ,,xix of the ,social ,security ,act1 is deemed to be1 or treated as1 receiving by the ,state ,medicaid ,agency7 benefits under the supplemental security income program under title ,,xvi of such ,act1 or whose benefits under such program are suspended other than by reason of misconduct1 7,,ii7 is receiving disability benefits under title ,,ii of such ,act1 or 7,,iii7 files a disability certification with the ,secretary for such year4 7iii7 ,disability certification defined ,the term disability certification means1 with respect to an individual1 a certification to the satisfaction of the ,secretary by the designated beneficiary or the parent or guardian of the designated beneficiary that-- 7,i7 the individual meets the criteria described in clause 7i71 and 7,,ii7 includes a copy of the designated beneficiary's diagnosis1 signed by a physician meeting the criteria of section #ahfa7r77#a7 of the ,social ,security ,act4 7iv7 ,restriction on use of certification ,no inference may be drawn from a disability certification for purposes of establishing eligibility for benefits under title ,,ii1 ,,xvi1 or ,,xix of the ,social ,security ,act4 7#d7 ,rollovers from ,,able accounts ,subsection 7c77#c77;,a7 shall not apply to any amount paid or distributed from an ,,able account to the extent that the amount received is paid1 not later than the #fjth day after the date of such payment or distribution1 into-- 7,a7 another ,,able account for the benefit of-- 7i7 the same beneficiary1 or 7ii7 an individual with a disability who is a family member of the beneficiary1 7,b7 any trust which is described in subparagraph 7,a7 or 7,c7 of section #aiag7;d77#d7 of the ,social ,security ,act and which is for the benefit of an individual described in clause 7i7 or 7ii7 of subparagraph 7,a71 or 7,c7 a qualified tuition program-- 7i7 for the benefit of the designated beneficiary1 or 7ii7 to the credit of another designated beneficiary under a qualified tuition program who is a member of the family of the designated beneficiary with respect to which the distribution was made4 ,the preceding sentence shall not apply to any payment or distribution if it applied to any prior payment or distribution during the #ab-month period ending on the date of the payment or distribution4 7#e7 ,transfer to ,state ,subject to any outstanding payments due for qualified disability expenses1 in the case that the designated beneficiary dies or ceases to be an individual with a disability1 all amounts remaining in the qualified ,,able account not in excess of the amount equal to the total medical assistance paid for the designated beneficiary after the establishment of the account1 net of any premiums paid from the account or paid by or on behalf of the beneficiary to a ,medicaid ,buy-,in program1 under any ,state ,medicaid plan established under title ,,xix of the ,social ,security ,act shall be distributed to such ,state upon filing of a claim for payment by such ,state4 ,for purposes of this paragraph1 the ,state shall be a creditor of an ,,able account and not a beneficiary4 ,subsection 7c77#c7 shall not apply to a distribution under the preceding sentence4 7#f7 ,regulations ,not later than #f months after the date of the enactment of this section1 the ,secretary may prescribe such regulations or other guidance as the ,secretary determines necessary or appropriate to carry out the purposes of this section1 including regulations to prevent fraud and abuse with respect to amounts claimed as qualified disability expenses4 4 7#b7 ,conforming amendment ,paragraph 7#b7 of section #ffic7;a7 of the ,internal ,revenue ,code of #aihf such ,code is amended by striking and at the end of subparagraph 7,d71 by striking the period at the end of subparagraph 7,e7 and inserting and1 and by inserting after subparagraph 7,e7 the following new subparagraph3 7,f7 section #ebi7;d7 by reason of #ebi7;f7 7relating to ,,able accounts74 4 7b7 ,annual reports 7#a7 ,in general ,the ,secretary of the ,treasury shall report annually to ,congress on the usage of ,,able accounts under section #ebi7;f7 of the ,internal ,revenue ,code of #aihf4 7#b7 ,contents of report ,any report under paragraph 7#a7 may include-- 7,a7 the number of people with an ,,able account1 7,b7 the total amount of contributions to such accounts1 7,c7 the total amount and nature of distributions from such accounts1 7,d7 issues relating to the abuse of such accounts1 if any1 and 7,e7 the amounts repaid from such accounts to ,state ,medicaid programs established under title ,,xix of the ,social ,security ,act4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #d4 ,treatment of ,,able accounts under certain ,federal programs 7a7 ,account funds disregarded for purposes of certain other means-,tested ,federal programs ,notwithstanding any other provision of ,federal law that requires consideration of #a or more financial circumstances of an individual1 for the purpose of determining eligibility to receive1 or the amount of1 any assistance or benefit authorized by such provision to be provided to or for the benefit of such individual1 any amount 7including earnings thereon7 in any ,,able account 7as defined in section #ebi7;f7 of the ,internal ,revenue ,code of #aihf7 of such individual1 and any distribution for qualified disability expenses 7as defined in paragraph 7#c7 of such section7 shall be disregarded for such purpose with respect to any period during which such individual maintains1 makes contributions to1 or receives distributions from such ,,able account1 except that1 in the case of the supplemental security income program under title ,,xvi of the ,social ,security ,act1 a distribution for housing expenses 7as defined in subparagraph 7,b77ii7 of such paragraph7 shall not be so disregarded1 and in the case of such program1 only the #ast #ajj1jjj of the amount 7including such earnings7 in such ,,able account shall be so disregarded4 7b7 ,suspension of ,,ssi benefits during periods of excessive account funds 7#a7 ,in general ,the benefits of an individual under the supplemental security income program under title ,,xvi of the ,social ,security ,act shall not be terminated1 but shall be suspended1 by reason of excess resources of the individual attributable to an amount in the ,,able account 7as defined in section #ebi7;f7 of the ,internal ,revenue ,code of #aihf7 of the individual not disregarded under subsection 7a7 of this section4 7#b7 ,no impact on ,medicaid eligibility ,an individual who would be receiving payment of such supplemental security income benefits but for the application of the previous sentence shall be treated for purposes of title ,,xix of the ,social ,security ,act as if the individual continued to be receiving payment of such benefits4