BILL NUMBER: S7264
SPONSOR: BAILEY
 
TITLE OF BILL:
An act to amend the tax law, in relation to establishing catastrophe
savings accounts
 
PURPOSE OR GENERAL IDEA OF BILL:
Establishes catastrophe savings accounts.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends the tax by adding a new part which provides for the
establishment of catastrophe savings accounts and defines terms.
 
JUSTIFICATION:
Catastrophe savings accounts are tax-advantaged accounts that assist
policyholders in paying for expenses incurred or related to a major
natural disaster, such as deductibles, flood or earthquake policies, and
covering various natural disasters and events by allowing them to set
aside funds to make their homes more disaster-proof via a specified
dollar amount or range. Much like a Health Savings Account, these funds
supplement existing insurance coverage, and can help offset the costs of
remediation and repair. This would reduce what state, local, and federal
government must pay following a natural disaster to the potential bene-
fit of both the taxpayer and the policyholder.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
The first of January next succeeding the date on which it shall have
become a law.