Qualified ABLE Program: CalABLE accounts: funding.

Assembly Member Addis proposes expanding California's ABLE Program through new funding mechanisms and incentives designed to increase participation in disability savings accounts. The legislation would authorize the California ABLE Act Board to accept grants, gifts, and appropriations from philanthropic entities and government sources, with discretion to allocate these funds between administrative and program purposes.

The bill establishes a framework for the board to offer financial incentives encouraging eligible individuals to open and utilize ABLE accounts. The board would determine incentive amounts and eligibility criteria, which may include actions such as opening new accounts, establishing recurring deposits, or participating in financial education. These incentives would be provided directly to designated beneficiaries or their authorized representatives.

Under the legislation, the Franchise Tax Board would add information about the California ABLE Program Trust to tax return instructions, alongside existing details about the Golden State Scholarshare College Savings Trust. This change aims to inform taxpayers about their ability to direct portions of tax refunds into ABLE accounts. The ABLE Act Board would provide a concise program description to the Franchise Tax Board for inclusion in these materials.

The measure maintains existing program structures while adding tools for expansion. The board retains its core powers to enter contracts, manage investments, and oversee program administration. New provisions allow partnerships with public, private, and nonprofit entities to facilitate broader program participation while maintaining federal compliance requirements for ABLE accounts.