Californians with disabilities could receive a new savings account with at least $250 already deposited should a new California bill become law.
The bill, formally known as SB 1362, would allow the California Achieving a Better Life Experience, or CalABLE, to make one-time deposits of at least $250 into new accounts that meet specific requirements.
CalABLE is a saving and investment program for people with disabilities.
The bill would also authorize the board to “provide additional financial incentives designated to increase the money paid by designated beneficiaries or eligible individuals in connection with their CalABLE accounts,” according to its text.
SB 1362 was introduced by Sen. Josh Newman (D-Fullerton) and is sponsored by California State Treasurer Fiona Ma.
“SB 1362 will encourage eligible Californians with qualifying disabilities to fully utilize the savings accounts to which they’re entitled,” Newman said in a statement.
“This bill will encourage and assist disabled Californians to open a CalABLE account as a first step toward ensuring their long-term financial security. By better ensuring the financial well-being of individuals with disabilities, we can create a more inclusive and prosperous California.”
Currently, CalABLE has more than 10,000 accounts open with about $127 million in assets, according to a news release from Ma’s office.
“While these numbers are significant, it is estimated that it only represents less than 1% of the state’s eligible disabled population. With the passage of SB 1362, California could exponentially increase participation and empower millions of Californians with a path to financial security. It could also establish CalABLE as the most competitive choice for Californians, compared to out-of-state ABLE programs,” the news release said.
Funding for the bill is subject to legislative appropriation.