HB 1448-1_ Filed 02/19/2009, 12:54


Text Box

Adopted Rejected


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COMMITTEE REPORT


                                                        YES:

18

                                                        NO:
0

MR. SPEAKER:
    Your Committee on       Ways and Means     , to which was referred       House Bill 1448     , has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill be amended as follows:

SOURCE: Page 1, line 1; (09)AM144801.1. -->     Page 1, delete lines 1 through 17.
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SOURCE: IC 6-8-13; (09)AM144801.1. -->     "SECTION 1. IC 6-8-13 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]:
     Chapter 13. Indiana Long Term Care Savings Plan
    Sec. 1. As used in this chapter, "eligible long term care expense" means:
        (1) an expense paid by a participant for long term care provided to the participant; or
        (2) a premium paid by a participant who is at least fifty (50) years of age for a qualified long term care policy for the

participant.
    Sec. 2. As used in this chapter, "financial institution" has the meaning set forth in IC 5-13-4-10.
    Sec. 3. As used in this chapter, "Internal Revenue Code" has the meaning set forth in IC 6-3-1-11.
    Sec. 4. As used in this chapter,"long term care" has the meaning set forth in IC 12-15-39.6-1.
    Sec. 5. As used in this chapter, "participant" means an individual who is participating in the plan.
    Sec. 6. As used in this chapter, "plan" refers to the Indiana long term care savings plan established by section 9(a) of this chapter.
    Sec. 7. As used in this chapter, "qualified long term care policy" has the meaning set forth IC 12-15-39.6-5.
    Sec. 8. As used in this chapter, "taxable year" has the meaning set forth in IC 6-3-1-16.
    Sec. 9. (a) The Indiana long term care savings plan is created for the purpose of funding by a participant on a tax-favored basis an account to pay eligible long term care expenses of the participant.
    (b) The department of financial institutions shall enter into agreements with one (1) or more financial institutions to receive contributions in the form of account deposits.
    Sec. 10. (a) After December 31, 2009, an individual may participate in the plan by making contributions to an account at a financial institution with which the department of financial institutions has an agreement under section 9(b) of this chapter.
    (b) A participant may make contributions under the plan to an account with a financial institution with which the department of financial institutions has an agreement under section 9(b) of this chapter. However, a participant may not contribute more than one hundred sixty-five thousand dollars ($165,000) to the plan during the participant's lifetime. The dollar amount of the maximum lifetime contribution must be adjusted annually for inflation in accordance with Section 151 of the Internal Revenue Code.
    (c) A participation agreement must provide the following:
        (1) That the agreement may be:
            (A) canceled by a participant; or
            (B) transferred to a participant's spouse:
        upon the terms and conditions set by the department of

financial institutions.
        (2) That a participant is the owner of contributions made to the plan, plus credited earnings on the contributions, unless the participant transfers the agreement.
        (3) That if:
            (A) a participant cancels the agreement; or
            (B) the plan established by section 9(a) of this chapter is terminated;
        a participant is entitled to receive the amount of the participant's contributions to the plan plus credited earnings on the participant's contributions. A participant may not receive more than the fair market value of the participant's account on the date the participant's account is liquidated.
    Sec. 11. IC 6-3-2-22 governs state income tax treatment of contributions to, investment earnings or interest on, withdrawals from, and distributions from the plan established under this chapter.
    Sec. 12. The department of financial institutions may adopt rules under IC 4-22-2 that it considers appropriate or necessary to implement this chapter.
    Sec. 13. This chapter may not be construed as an obligation of the state to assume any responsibility for the Indiana long term care savings plan.
".
    Delete pages 6 through 7.

SOURCE: Page 8, line 1; (09)AM144801.8. -->     Page 8, delete lines 1 through 10.
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1448 as introduced.)

and when so amended that said bill do pass.

__________________________________

Representative Crawford


AM144801/DI 113    2009