Tennessee Senate Bill SB0363

Tennessee 2023-2024 Regular Session

• Introduced: 1/23/23
• Engrossed: 2/23/23
• Enrolled: 2/28/23
• Passed: 3/14/23
• Chaptered: 3/23/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 71, Chapter 4, Part 8, relative to qualified ABLE accounts.

Impact

If enacted, SB 363 would significantly impact the management and distribution of assets held in ABLE accounts, particularly for individuals with disabilities. The amendment would ensure that the remaining funds in these accounts would be preserved for the beneficiary's estate or for beneficiaries designated by them, rather than being reclaimed for state medical assistance. This change aims to provide individuals and families with greater security in managing their financial resources posthumously, thus aiding in their financial planning and autonomy.

Summary

Senate Bill 363 aims to amend Tennessee Code Annotated regarding qualified Achieving a Better Life Experience (ABLE) accounts. The bill specifically addresses the recovery of funds within these accounts by the state following the death of the designated beneficiary. Under the provisions of the bill, the state shall not seek recovery of any remaining balance in a qualified ABLE account for medical assistance paid on behalf of the beneficiary, unless mandated by federal law. This includes protections against claims for payment under federal law, specifically § 529A of the Internal Revenue Code, which governs ABLE accounts.

Sentiment

The sentiment surrounding SB 363 appears to be largely positive, as evidenced by its unanimous passage in the Senate with a vote of 94 in favor and none against. Advocates for individuals with disabilities and their families likely view this bill favorably, as it enhances the financial security of ABLE account holders after their death. The bill's passage reflects a legislative commitment to supporting the rights and protections of individuals with disabilities, granting them and their families the confidence necessary to manage their savings without fear of state recuperation efforts.

Contention

While no major points of contention were documented, SB 363's impact on how the state interacts with ABLE account holders posthumously may raise questions about funding for public assistance programs in the long term. Some parties may argue that restricting recoveries could result in a financial burden on state resources, particularly if many beneficiaries utilize their accounts for substantial medical expenses, but the lack of opposition during the voting indicates a strong consensus in support of this legislative change.