HB274 Alabama 2015 Session

Summary

Primary Sponsor

Ken Johnson

Republican

Session

Regular Session 2015

Title

Wallace-Folsom College Savings Investment Plan, named changed to Wallace-Folsom Savings Investment Plan, provide the Achieving a Better Life Experience (ABLE) program, definitions relating to ABLE, provide tax exemptions, appropriations for development of ABLE program, Secs. 16-33C-1, 16-33C-2, 16-33C-2.1, 16-33C-3, 16-33C-4, 16-33C-5, 16-33C-10, 16-33C-11, 16-33C-12, 40-18-19 am'd.

Summary

The bill renames the Wallace-Folsom plan and adds an ABLE program to help people save for disability expenses, with tax exemptions and funding for development.

What This Bill Does

It renames the Wallace-Folsom College Savings Investment Plan to Wallace-Folsom Savings Investment Plan and adds the Achieving a Better Life Experience (ABLE) program as part of the plan, along with existing ACES and PACT programs. It creates ABLE-related definitions and funds, including ABLE Savings Accounts and the ABLE Trust Fund, and sets up related administrative funds. It provides for a state income tax exemption for ABLE program savings and for ABLE/ACES savings and earnings, starting for ABLE in 2016. It authorizes fiscal year 2015 appropriations to develop and implement the ABLE program and allows payroll deduction contributions from state employees toward these accounts.

Who It Affects

• Individuals with disabilities and their families who would use ABLE Savings Accounts to pay qualified disability expenses.
• Contributors to ABLE, ACES, or PACT accounts (such as parents and relatives) who fund savings accounts for designated beneficiaries.
• Alabama taxpayers, who would see income tax exemptions apply to ABLE and ACES program savings and earnings.
• State government and the State Treasurer’s Office, which would administer the ABLE, ACES, and PACT programs and handle investments and distributions.
• State employees who may serve on the program boards, since the bill allows board members employed by the state.

Key Provisions

• Renames the Wallace-Folsom College Savings Investment Plan to the Wallace-Folsom Savings Investment Plan and adds ABLE as part of the plan alongside ACES and PACT.
• Creates the ABLE Program, ABLE Savings Accounts, ABLE Trust Fund, ACES Administrative Fund, and ABLE/ACES-related funds; defines key terms and how accounts operate.
• Provides for an income tax exemption for ABLE savings and for ABLE/ACES savings, with ABLE exemptions beginning January 1, 2016, and preserves existing PACT/ACES tax exemptions.
• Authorizes FY2015 appropriations for ABLE development and implementation, including $75,000 from the Unclaimed Property Reserve Fund and $75,000 from the State Treasury Operations Fund.
• Grants the Savings Board broad authority to invest funds, contract with providers, accept gifts, enter into savings agreements, and delegate day-to-day administration to the State Treasurer; allows payroll deductions for contributions.
• Defines board composition, terms, duties, and liability protections for board members acting in good faith; allows meetings by teleconference and establishes governance rules.
• Establishes protections and reporting requirements, including annual audits by the Examiners of Public Accounts and annual accounting to the Governor, Lieutenant Governor, and Speaker of the House.
• Specifies that ABLE/ACES funds are to be used solely for their intended purposes and provides creditor protection with certain death-related exceptions.
• Provides for immediate effectiveness upon passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Wallace-Folsom College Savings Investment Plan