HOUSE BILL 98

56th legislature - STATE OF NEW MEXICO - second session, 2024

INTRODUCED BY

Elizabeth "Liz" Thomson

 

 

 

 

 

AN ACT

RELATING TO PUBLIC FINANCE; AMENDING THE ACCOUNTS FOR PERSONS WITH DISABILITIES ACT TO EXPAND ELIGIBILITY FOR AN ACCOUNT; REPEALING AND REENACTING SECTION 6-8A-6 NMSA 1978 (BEING LAWS 2016, CHAPTER 40, SECTION 6) TO CREATE AN EXEMPTION FROM MEDICAID RECOVERY.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 6-8A-2 NMSA 1978 (being Laws 2016, Chapter 40, Section 2) is amended to read:

     "6-8A-2. DEFINITIONS.--As used in the Accounts for Persons with Disabilities Act:

          A. "account" means an individual tax-free savings account for a designated beneficiary that is established pursuant to Section 529A of the Internal Revenue Code of 1986, as amended;

          B. "account owner" means a person who establishes and owns an account under the Accounts for Persons with Disabilities Act and who is one of the following:

                (1) the designated beneficiary of the account;

                (2) the parent, guardian or conservator of a minor designated beneficiary; or

                (3) the conservator of a designated beneficiary otherwise incapable of handling such beneficiary's financial affairs;

          C. "designated beneficiary" means a person for whom an account is established under the Accounts for Persons with Disabilities Act;

          D. "disability certification" means a certification deemed sufficient by the United States secretary of the treasury to establish a certain level of physical or mental impairment that meets the requirements of Section 529A of the Internal Revenue Code of 1986, as amended;

          E. "eligible person" means, for a taxable year, a person who is either:

                (1) entitled during that taxable year to benefits based on blindness or disability under Title 2 or Title 16 of the federal Social Security Act; provided that such blindness or disability occurred before the date on which the individual attained age [twenty-six] forty-six; or

                (2) the subject of a disability certification filed with the United States secretary of the treasury;

          F. "family member" means a sibling, whether by blood or adoption, including a brother, sister, stepbrother, stepsister, half-brother or half-sister;

          G. "fiduciary" means a person authorized to do business in New Mexico and acting as a fiduciary to manage and invest an account; provided that such person is bonded and is not the parent, guardian or conservator of the designated beneficiary of the account;

          H. "financial organization" means an organization that is authorized to do business in New Mexico and is:

                (1) licensed or chartered by the office of superintendent of insurance;

                (2) licensed or chartered by the financial institutions division of the regulation and licensing department; or

                (3) subject to the jurisdiction of the federal securities and exchange commission;

          I. "office" means the office of the state treasurer;

          J. "qualified disability expenses" means any expenses, related to the designated beneficiary's blindness or disability, that include the following:

                (1) education;

                (2) housing;

                (3) transportation;

                (4) employment training and support;

                (5) assistive technology and personal support services;

                (6) health, prevention and wellness;

                (7) financial management and administrative services;

                (8) legal fees;

                (9) expenses for oversight and monitoring;

                (10) funeral and burial expenses; and

                (11) other expenses approved by the United States secretary of the treasury; and

          K. "qualified program" means a program established and maintained by the state or an agency or instrumentality of the state pursuant to 26 U.S.C. Section 529A."

     SECTION 2. Section 6-8A-6 NMSA 1978 (being Laws 2016, Chapter 40, Section 6) is repealed and a new Section 6-8A-6 NMSA 1978 is enacted to read:

     "6-8A-6. [NEW MATERIAL] LIMITATION ON MEDICAID PAYBACK.--Unless required by federal law, the state or an agency or instrumentality of the state shall not:

          A. seek payment from an account or its proceeds for benefits provided to the beneficiary of the account pursuant to 26 U.S.C. Section 529A; or

          B. undertake estate recovery from an account pursuant to 26 U.S.C. Section 529A."  

     SECTION 3. EFFECTIVE DATES.--

          A. The effective date of the provisions of Section 1 of this act is January 1, 2026.

B. The effective date of the provisions of Section

2 of this act is July 1, 2024.

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