SB226 Alabama 2015 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Dick Brewbaker
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 creates an ABLE program within that plan, along with ACES and PACT, with tax relief, governance rules, and initial funding for development.
What This Bill Does
It changes the plan's name to Wallace-Folsom Savings Investment Plan and establishes the ABLE Program, the ACES Program, and the PACT Program under the plan. It defines ABLE-related terms, creates ABLE savings accounts and trust funds, and sets up administrative and enhancement funds and investment authority. It also authorizes income tax exemptions for ABLE program earnings and outlines upfront state funding for ABLE development in FY2015, plus governance and reporting requirements for the programs.

Who It Affects
Individuals with disabilities and their families who would use ABLE savings accounts to pay for qualified disability expenses and potentially receive tax exemptions on ABLE earnings and distributions.
Alabama residents who contribute to ABLE, ACES, or PACT savings accounts and are eligible for related state income tax exemptions and program benefits.

Key Provisions
Renames the Wallace-Folsom College Savings Investment Plan to the Wallace-Folsom Savings Investment Plan and adds the ABLE Program, ACES Program, and PACT Program under the plan.
Creates and defines the ABLE Program, ABLE Savings Accounts, ABLE Trust Fund, ABLE Administrative Fund, and ABLE Opportunity Enhancement Fund, along with associated savings agreements and governance structures.
Establishes the ACES Program and PACT Program with their own Trust Funds and Administrative Funds, and sets forth investment, contract, and administrative powers for the savings boards.
Authorizes the Savings Boards to invest funds, contract for goods and services, accept gifts, and contract with other states, while providing protections for board members acting in good faith.
Provides income tax exemptions for ABLE Program earnings and qualified distributions beginning January 1, 2016, and maintains existing 529/ACES/PACT-related exemptions and definitions.
Allocates initial funding for ABLE development in FY2015 (two separate $75,000 appropriations) and requires annual audits by the Examiners of Public Accounts.

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