2025 -- H 5973

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LC001692

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- OFFICE OF HEALTH AND

HUMAN SERVICES

     Introduced By: Representatives Cortvriend, Tanzi, Dawson, Handy, McGaw, and Spears

     Date Introduced: February 28, 2025

     Referred To: House Finance

     (General Treasurer)

It is enacted by the General Assembly as follows:

     SECTION 1. Section 42-7.2-20.8 of the General Laws in Chapter 42-7.2 entitled "Office

of Health and Human Services" is hereby amended to read as follows:

     42-7.2-20.8. Creditors.

     Notwithstanding any provision of the general or public laws to the contrary, money in the

ABLE program shall be exempt from creditor process and shall not be liable to attachment,

garnishment, or other process, nor shall it be seized, taken, appropriated or applied by any legal or

equitable process or operation of law to pay any debt or liability or any contributor or beneficiary;

provided, however, that the state of residency of the designated beneficiary of an ABLE account

shall be a creditor of such account in the event of the death of the designated beneficiary. Upon

death of a designated beneficiary, an agency or instrumentality of state shall not seek payment

pursuant to 26 U.S.C § 529A from any ABLE savings trust account or its proceeds for benefits

provided to a designated beneficiary, except as required by federal law.

     SECTION 2. This act shall take effect upon passage.

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LC001692

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- OFFICE OF HEALTH AND

HUMAN SERVICES

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     This act would prohibit the state from seeking reimbursement for expenditures made on

behalf of disabled Rhode Islanders from an ABLE account after death of the designated beneficiary.

     This act would take effect upon passage.

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LC001692

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