HB 98 ACCOUNTS FOR DISABLED ELIGIBILITY

Rep Elizabeth "Liz" Thomson

Actions: HPREF [2] HHHC/HAFC-HHHC [4] DP-HAFC [7] DP [12] PASSED/H (63-0) [7] SHPAC-SHPAC [9] DP [15] PASSED/S (40-0) SGND BY GOV (Feb. 29) Ch. 17.

Scheduled: Not Scheduled

 House Bil 98 (HB 98):  This bill is a draft of legislative amendments related to public finance in the state of New Mexico. The proposed changes involve expanding eligibility for individual tax-free savings accounts for persons with disabilities under the Accounts for Persons with Disabilities Act. Additionally, it introduces an exemption from Medicaid recovery for these accounts. 

 House Bill 98 (HB 98):  Section 1: Amendment to Definitions - Expands the definition of an "account" as an individual tax-free savings account for a designated beneficiary.  
•	Defines "account owner" as the person who establishes and owns an account, including the designated beneficiary, parent, guardian, or conservator.  
•	Defines "designated beneficiary" as the person for whom an account is established.  
•	Introduces the term "eligible person" as an individual entitled to benefits based on blindness or disability under federal Social Security Act or certified as disabled by the U.S. Secretary of the Treasury.  
•	Defines "qualified disability expenses" to include various categories of expenses related to the designated beneficiary's blindness or disability.  
•	Defines "qualified program" as a program established and maintained by the state or its agencies pursuant to 26 U.S.C. Section 529A.
Section 2: New Section on Medicaid Payback Limitation - Repeals and replaces Section 6-8A-6 NMSA 1978.  Introduces a new section stating that unless required by federal law, the state or its agencies shall not seek payment from an account or its proceeds for benefits provided to the beneficiary under 26 U.S.C. Section 529A.  Prohibits estate recovery from an account pursuant to 26 U.S.C. Section 529A.
Section 3: Effective Dates - Specifies that the effective date for Section 1 is January 1, 2026.  Specifies that the effective date for Section 2 is July 1, 2024.