Qualified ABLE Program: CalABLE accounts: funding.

Assembly Member Addis leads a measure that would establish the California ABLE Program Trust as a state instrumentality to operate the ABLE program and broaden its funding and outreach capabilities, including the addition of a direct-deposit option for ABLE gifts through taxpayer refunds. The measure also integrates ABLE into tax-filing processes by requiring the Franchise Tax Board to provide taxpayer instructions about directing a portion of refunds to the ABLE program, alongside the existing Scholarshare option, with brief program descriptions supplied by the program boards.

A core shift is the creation of the California ABLE Program Trust and the broad scope of its governance and operations. The measure empowers the board to accept grants, gifts, legislative appropriations, and other funds for deposit to either the program or administrative funds, and to use those resources to encourage account creation and participation through public outreach, including targeted efforts toward specified subgroups and potential partnerships with public, private, or nonprofit entities. The board may enter contracts for administration, set minimum and maximum investment levels, administer fees, and carry out duties under the federal ABLE Act. The governance framework also provides for public disclosure of certain contracts with program consultants and assigns the Treasurer the authority to appoint an executive director and to define staff roles and compensation.

Implementation and funding arrangements are defined through a two-fund structure: a continuously appropriated program fund and an administrative fund that is available by legislative appropriation. The measure contemplates legislative appropriations to support ABLE program activities and outreach, while enabling the board to use funds to increase participation in the program. The Franchise Tax Board would revise refund-direct-deposit instructions to include the ABLE program in addition to the Scholarshare option, and the descriptions of both programs would be five lines or fewer, with cross-references to established definitions in related Education and Welfare codes. The measure also permits the board to set fees and penalties related to program transactions and to carry out necessary program administration, insurance, and audits.

Broad policy and regulatory context aside, the measure expands the state’s involvement in ABLE program funding and outreach and embeds ABLE participation more directly in tax administration. The new framework would require regulatory drafting to address deadlines for description submissions, criteria for targeted outreach, and specifics around fee structures and reporting, while clarifying how outreach activities align with overall program intent. Stakeholders include taxpayers eligible for ABLE accounts, designated beneficiaries, ABLE program staff and trustees, the Franchise Tax Board, and potential public, private, or nonprofit partners, all of whom would interact within a governance and funding landscape that emphasizes outreach, account participation, and compliance with federal ABLE Act requirements.