Savings plans: qualified ABLE program.

Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act) , encourages and assists individuals and families to save private funds for the purpose of supporting persons with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified. Existing law conforms to these federal income tax law provisions relating to the ABLE Act under the Personal Income Tax Law and the Corporation Tax Law, as provided. Existing law defines "eligible individual" for these purposes. Existing law establishes in state government the ABLE program trust for purposes of implementing the federal ABLE Act. Existing law also establishes the ABLE Act Board and authorizes the board to adopt regulations to implement the program. The existing State Contract Act, in connection with contracts entered into by any state agency for services to be rendered to the state, prohibits a person, firm, or subsidiary thereof that has been awarded a consulting services contract from submitting a bid for, or being awarded a contract for, the provision of services, the procurement of goods or supplies, or any other related action that is required, suggested, or otherwise deemed appropriate in the end product of the consulting services contract. A willful violation of these provisions is a misdemeanor, under other provisions. This bill would modify the definition of "eligible individual." The bill would also exempt the ABLE Act Board from the above prohibition in the State Contract Act for a contract with a program consultant for the qualified ABLE program but would require such a contract to be publicly disclosed in a manner specified by the board prior to entering into the contract. This bill would declare that it is to take effect immediately as an urgency statute.