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As Introduced
136th
General Assembly
Regular
Session
S. B. No. 128
2025-2026
Senators Brenner, Roegner
To
amend sections 113.51
and
113.53 of the Revised Code
regarding
Ohio ABLE accounts and to make an appropriation.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 113.51
and
113.53 of the Revised Code be amended to read as follows:
Sec.
113.51.
(A)
The treasurer of state shall implement and administer a program under
the terms and conditions established under sections 113.50 to 113.56
of the Revised Code. For that purpose, the treasurer shall do all of
the following:
(1)
Develop and implement the program in a manner consistent with the
provisions of sections 113.50 to 113.56 of the Revised Code;
(2)
Engage the services of consultants on a contract basis for rendering
professional and technical assistance and advice;
(3)
Seek rulings and other guidance from the secretary and the internal
revenue service relating to the program;
(4)
Make modifications to the program as necessary for participants in
the program to qualify for the federal income tax benefits or
treatment provided under section 529A of the Internal Revenue Code or
rules adopted thereunder;
(5)
Impose and collect administrative fees and service charges in
connection with any agreement or transaction relating to the program;
(6)
Develop marketing plans and promotional materials to publicize the
program;
(7)
Establish the procedures by which funds held in program accounts
shall be disbursed;
(8)
Administer the issuance of interests by the Ohio ABLE savings program
trust fund to designated beneficiaries;
(9)
Establish the procedures by which funds held in program accounts
shall be allocated to pay for administrative costs;
(10)
Take any other action necessary to implement and administer the
program;
(11)
Adopt rules in accordance with Chapter 119. of the Revised Code
necessary to implement and administer the program;
(12)
Notify the secretary when a program account has been opened for a
designated beneficiary and submit other reports concerning the
program as required by the secretary or under section 529A of the
Internal Revenue Code.
(B)
The treasurer of state may enter into agreements with other states or
agencies of, subdivisions of, or residents of those states related to
the program or a similar ABLE account program established by another
state in accordance with section 529A of the Internal Revenue Code.
(C)
The treasurer of state shall pay account fees associated with an ABLE
account on behalf of an Ohio account owner or beneficiary.
Sec.
113.53.
(A)
A designated beneficiary, or a trustee or guardian of a designated
beneficiary who lacks capacity to enter into an agreement, may apply,
on forms prescribed by the treasurer of state, to open a program
account. A beneficiary may have only one ABLE account. The treasurer
of state may impose a nonrefundable application fee. The application
shall require the applicant to provide the following information:
(1)
The name, address, social security number, and birth date of the
designated beneficiary;
(2)
The name, address, and social security number of the designated
beneficiary's trustee or guardian, if applicable;
(3)
Certification by the applicant that the applicant understands the
maximum account value and the consequences under division (C) of this
section for excess contributions and understands how program account
values exceeding the amount designated under section 103 of the
"Stephen Beck, Jr., ABLE Act of 2014," 26 U.S.C. 529A note,
may affect the applicant's resources for determining the applicant's
eligibility for the supplemental security income program;
(4)
Any additional information required by the treasurer of state.
(B)(1)
To qualify for a program account, a designated beneficiary must be an
eligible individual at the time the program account is opened. Before
opening a program account, the treasurer of state or program manager
shall enter into an agreement with the account owner that discloses
the requirements and restrictions on contributions and withdrawals
from the program account.
(2)
Any person may make contributions to a program account after the
account is opened, subject to the limitations imposed by section 529A
of the Internal Revenue Code and any rules adopted by the secretary.
(C)
Contributions to a program account shall be made in cash. The
treasurer of state or program manager shall reject or promptly
withdraw a contribution to a program account if that contribution
would exceed the annual limits prescribed in subsection (b)(2)(B) of
section 529A of the Internal Revenue Code. The treasurer or program
manager shall reject or promptly withdraw a contribution if the value
of the program account equals or exceeds the maximum account value or
the designated beneficiary is not an eligible individual in the
current calendar year.
(D)(1)
To the extent authorized by federal law, and in accordance with rules
adopted by the treasurer of state, an account owner may change the
designated beneficiary of a program account to another individual.
(2)
No account owner may use an interest in an ABLE account as security
for a loan. Any pledge of an interest in an account shall be void and
of no force and effect.
(E)(1)
A distribution from a program account to any individual or for the
benefit of any individual during a calendar year shall be reported to
the internal revenue service and the designated beneficiary or the
distributee to the extent required under state or federal law.
(2)
Statements shall be provided to each account owner of a program
account at least four times each year within thirty days after the
end of the quarterly period to which a statement relates. The
statement shall identify the contributions made during the preceding
quarter, the total contributions made to the account through the last
day of that quarter, the value of the account on the last day of that
quarter, distributions made during that quarter, and any other
information that the treasurer of state requires to be reported to
the account owner.
(3)
Statements and information relating to program accounts shall be
prepared and filed to the extent required under sections 113.50 to
113.56 of the Revised Code and any other state or federal law.
(F)
The program shall provide separate accounting for each designated
beneficiary. An annual fee may be imposed upon the account owner for
the maintenance of a program account.
(G)
(G)(1)
Money
in an ABLE account shall be exempt from attachment, execution, or
garnishment as provided in section 2329.66 of the Revised Code
,
and is
.
(2)
Unless required by federal law, money in an ABLE account is not
subject
to claims made under the medicaid estate recovery program instituted
pursuant to section 5162.21 of the Revised Code
,
in accordance with subsection (f) of section 529A of the Internal
Revenue Code and subject to any limitations imposed by the secretary
.
(H)(1)
Notwithstanding any other provision of state law, all of the
following shall be disregarded for the purposes of determining an
individual's eligibility for a means-tested public assistance program
funded only with state, local, or state and local funds and the
amount of assistance or benefits the individual is eligible to
receive under the program:
(a)
Any amount in an ABLE account, including earnings on the account;
(b)
Any contributions to an ABLE account;
(c)
Any distribution from an ABLE account for qualified disability
expenses.
(2)
Division (H)(1) of this section applies only to an individual who is
either of the following:
(a)
The designated beneficiary of the ABLE account;
(b)
An individual whose eligibility for the means-tested program is
conditioned on the ABLE account's designated beneficiary disclosing
the designated beneficiary's income, resources, or both to the entity
administering the means-tested public assistance program
.
(3)
Notwithstanding any provision of the Revised Code to the contrary,
all information related to an ABLE account obtained by the treasurer
of state under this section is not a public record under section
149.43 of the Revised Code
.
Section
2.
That
existing sections 113.51
and
113.53 of the Revised Code are hereby repealed.
Section
3.
All
items in this act are hereby appropriated as designated out of any
moneys in the state treasury to the credit of the designated fund.
For all operating appropriations made in this act, those in the first
column are for fiscal year 2026 and those in the second column are
for fiscal year 2027. The operating appropriations made in this act
are in addition to any other operating appropriations made for these
fiscal years.
Section
4.
1
2
3
4
5
A
TOS
TREASURER OF STATE
B
Dedicated
Purpose Fund Group
C
4E90
090639
STABLE
Maintenance Fee Subsidy
$900,000
$900,000
D
TOTAL
Dedicated Purpose Fund Group
$900,000
$900,000
E
TOTAL
ALL BUDGET FUND GROUPS
$900,000
$900,000
STABLE
MAINTENANCE FEE SUBSIDY
The
foregoing appropriation item 090639, STABLE Maintenance Fee Subsidy,
shall be used to subsidize costs of monthly fees incurred by STABLE
account holders for eligible individuals with disabilities.
Section
5.
Within
the limits set forth in this act, the Director of Budget and
Management shall establish accounts indicating the source and amount
of funds for each appropriation made in this act, and shall determine
the manner in which appropriation accounts shall be maintained.
Expenditures from operating appropriations contained in this act
shall be accounted for as though made in, and are subject to all
applicable provisions of, the main operating appropriations act of
the 136th General Assembly.