BILL ANALYSIS
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THIRD READING
Bill No: SJR 31
Author: Pavley (D), et al
Amended: 5/11/10
Vote: 21
WITHOUT REFERENCE TO COMMITTEE OR FILE
SUBJECT : Individuals with disabilities: tax exempt
accounts
SOURCE : Author
DIGEST : This resolution urges the President and the
Congress of the United States to immediately enact the
Achieving a Better Life Experience Act of 2009.
ANALYSIS : This resolution states the following:
1.Many families are searching for a way to plan for the
future of a child with developmental disabilities, which
are costly to society and to families.
2.H.R. 1205 and S. 493, The Achieving a Better Life
Experience Act of 2009 (ABLE Act), currently debated by
Congress, creates disability savings accounts for
individuals with disabilities and their families, as a
way to save for future needs that could accrue interest
tax free.
3.The ABLE Act gives individuals with disabilities and
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their families an option for saving for their future
financial needs in a way that supports their unique
situation and makes it more feasible to live full and
productive lives in their communities.
4.While many families are currently able to save for the
educational needs of children through "529" college
tuition plans, these plans do not fit the needs of
children with developmental disabilities.
5.Many families recognize that loved ones with
developmental disabilities may live for many decades
beyond the ability of the parents or other family members
to provide financial assistance and support.
6.Many families also want to ensure the financial security
of family members who have the level of disability
required for Medicaid eligibility, but for now, are
managing to function without the use of those benefits
and state resources.
7.The ABLE Act creates a savings fund for those with
developmental disabilities that could be drawn upon for a
variety of essential expenses, including medical and
dental care, education and employment training and
support, assistive technology, housing and
transportation, personal support services, and other
expenses for life necessities.
8.Savings accounts opened under the ABLE Act provides
substantial flexibility to meet the specific needs of the
individual, with a broad array of allowable expenses and
no age limitations so that these funds can be used
whenever they are needed.
9.The flexibility in expenses would also allow families to
save with confidence even though they cannot always
predict how independent their child will become.
The California State Legislature urges the President and
the Congress of the United States to immediately enact the
Achieving a Better Life Experience Act of 2009.
FISCAL EFFECT : Fiscal Com.: No
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RJG:nl 5/13/10 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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