Substitute Senate Bill No. 1476 seeks to amend Connecticut's statutes governing Achieving a Better Life Experience (ABLE) accounts to better align with federal regulations and enhance support for individuals with disabilities. The bill repeals Sections 3-39j, 3-39k, and 3-39r, replacing them with new definitions and provisions that clarify terms such as "ABLE account," "authorized individual," "eligible individual," and "qualified disability expenses" in accordance with Section 529A of the Internal Revenue Code. It also removes outdated language regarding disability certification and self-certification, streamlining the process for establishing ABLE accounts. The State Treasurer is mandated to establish a qualified ABLE program, oversee its operations, and promote it through a designated outreach director.

Furthermore, the bill expands eligibility criteria by updating the definition of eligible individuals to include those whose disabilities occurred before age 46, effective January 1, 2026. It replaces the term "depositors" with "authorized individuals" and allows the State Treasurer to cover fees associated with administering ABLE accounts. The bill ensures that funds in these accounts are disregarded when determining eligibility for means-tested public assistance programs, and it clarifies that contributions, investments, and distributions from ABLE accounts will not be considered assets for need-based institutional aid at public educational institutions. Overall, these amendments aim to enhance the functionality and compliance of the ABLE Trust while safeguarding the interests of its beneficiaries, with no expected fiscal impact on the state or municipalities.

Statutes affected:
Raised Bill: 3-39j, 3-39k, 3-39l, 3-39p, 3-39q, 3-39r
HS Joint Favorable: 3-39j, 3-39k, 3-39l, 3-39p, 3-39q, 3-39r
File No. 385: 3-39j, 3-39k, 3-39p, 3-39q, 3-39r