SB 128: Regards Ohio ABLE accounts

As Introduced

136th General Assembly Regular Session 2025-2026

S. B. No. 128

Senators Brenner, Roegner

To amend sections 113.51 and 113.53 of the Revised 1
Code regarding Ohio ABLE accounts and to make an 2
appropriation. 3

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 113.51 and 113.53 of the Revised 4
Code be amended to read as follows: 5
Sec. 113.51. (A) The treasurer of state shall implement 6
and administer a program under the terms and conditions 7
established under sections 113.50 to 113.56 of the Revised Code. 8
For that purpose, the treasurer shall do all of the following: 9
(1) Develop and implement the program in a manner 10
consistent with the provisions of sections 113.50 to 113.56 of 11
the Revised Code; 12
(2) Engage the services of consultants on a contract basis 13
for rendering professional and technical assistance and advice; 14
(3) Seek rulings and other guidance from the secretary and 15
the internal revenue service relating to the program; 16
(4) Make modifications to the program as necessary for 17
participants in the program to qualify for the federal income 18
tax benefits or treatment provided under section 529A of the 19

S. B. No. 128 Page 2

As Introduced

al Revenue Code or rules adopted thereunder; 20
(5) Impose and collect administrative fees and service 21
charges in connection with any agreement or transaction relating 22
to the program; 23
(6) Develop marketing plans and promotional materials to 24
publicize the program; 25
(7) Establish the procedures by which funds held in 26
program accounts shall be disbursed; 27
(8) Administer the issuance of interests by the Ohio ABLE 28
savings program trust fund to designated beneficiaries; 29
(9) Establish the procedures by which funds held in 30
program accounts shall be allocated to pay for administrative 31
costs; 32
(10) Take any other action necessary to implement and 33
administer the program; 34
(11) Adopt rules in accordance with Chapter 119. of the 35
evised Code necessary to implement and administer the program; 36
(12) Notify the secretary when a program account has been 37
opened for a designated beneficiary and submit other reports 38
concerning the program as required by the secretary or under 39
section 529A of the Internal Revenue Code. 40
(B) The treasurer of state may enter into agreements with 41
other states or agencies of, subdivisions of, or residents of 42
those states related to the program or a similar ABLE account 43
program established by another state in accordance with section 44

529A of the Internal Revenue Code. 45 (C) The treasurer of state shall pay account fees 46

S. B. No. 128 As Introduced

associated with an ABLE account on behalf of an Ohio account 47
owner or beneficiary. 48
Sec. 113.53. (A) A designated beneficiary, or a trustee or 49
guardian of a designated beneficiary who lacks capacity to enter 50
into an agreement, may apply, on forms prescribed by the 51
treasurer of state, to open a program account. A beneficiary may 52
have only one ABLE account. The treasurer of state may impose a 53
nonrefundable application fee. The application shall require the 54
applicant to provide the following information: 55
(1) The name, address, social security number, and birth 56
date of the designated beneficiary; 57
(2) The name, address, and social security number of the 58
designated beneficiary's trustee or guardian, if applicable; 59
(3) Certification by the applicant that the applicant 60
understands the maximum account value and the consequences under 61
division (C) of this section for excess contributions and 62
understands how program account values exceeding the amount 63
designated under section 103 of the "Stephen Beck, Jr., ABLE Act 64
of 2014," 26 U.S.C. 529A note, may affect the applicant's 65
resources for determining the applicant's eligibility for the 66
supplemental security income program; 67
(4) Any additional information required by the treasurer 68
of state. 69
(B)(1) To qualify for a program account, a designated 70
beneficiary must be an eligible individual at the time the 71
program account is opened. Before opening a program account, the 72
treasurer of state or program manager shall enter into an 73
agreement with the account owner that discloses the requirements 74
and restrictions on contributions and withdrawals from the 75

S. B. No. 128 As Introduced

program account. 76

(2) Any person may make contributions to a program account 77
after the account is opened, subject to the limitations imposed 78
by section 529A of the Internal Revenue Code and any rules 79
adopted by the secretary. 80
(C) Contributions to a program account shall be made in 81
cash. The treasurer of state or program manager shall reject or 82
promptly withdraw a contribution to a program account if that 83
contribution would exceed the annual limits prescribed in 84
subsection (b)(2)(B) of section 529A of the Internal Revenue 85
Code. The treasurer or program manager shall reject or promptly 86
withdraw a contribution if the value of the program account 87
equals or exceeds the maximum account value or the designated 88
beneficiary is not an eligible individual in the current 89
calendar year. 90
(D)(1) To the extent authorized by federal law, and in 91
accordance with rules adopted by the treasurer of state, an 92
account owner may change the designated beneficiary of a program 93
account to another individual. 94
(2) No account owner may use an interest in an ABLE 95
account as security for a loan. Any pledge of an interest in an 96
account shall be void and of no force and effect. 97
(E)(1) A distribution from a program account to any 98
individual or for the benefit of any individual during a 99
calendar year shall be reported to the internal revenue service 100
and the designated beneficiary or the distributee to the extent 101
required under state or federal law. 102
(2) Statements shall be provided to each account owner of 103
a program account at least four times each year within thirty 104

S. B. No. 128 As Introduced

days after the end of the quarterly period to which a statement 105
relates. The statement shall identify the contributions made 106
during the preceding quarter, the total contributions made to 107
the account through the last day of that quarter, the value of 108
the account on the last day of that quarter, distributions made 109
during that quarter, and any other information that the 110
treasurer of state requires to be reported to the account owner. 111
(3) Statements and information relating to program 112
accounts shall be prepared and filed to the extent required 113
under sections 113.50 to 113.56 of the Revised Code and any 114
other state or federal law. 115
(F) The program shall provide separate accounting for each 116
designated beneficiary. An annual fee may be imposed upon the 117
account owner for the maintenance of a program account. 118
(G) (G)(1) Money in an ABLE account shall be exempt from 119
attachment, execution, or garnishment as provided in section 120
2329.66 of the Revised Code, and is . 121
(2) Unless required by federal law, money in an ABLE 122
account is not subject to claims made under the medicaid estate 123
recovery program instituted pursuant to section 5162.21 of the 124
Revised Code, in accordance with subsection (f) of section 529A 125
of the Internal Revenue Code and subject to any limitations 126
imposed by the secretary. 127
(H)(1) Notwithstanding any other provision of state law, 128
all of the following shall be disregarded for the purposes of 129
determining an individual's eligibility for a means-tested 130
public assistance program funded only with state, local, or 131
state and local funds and the amount of assistance or benefits 132
the individual is eligible to receive under the program: 133

S. B. No. 128 As Introduced

(a) Any amount in an ABLE account, including earnings on 134
the account; 135
(b) Any contributions to an ABLE account; 136
(c) Any distribution from an ABLE account for qualified 137
disability expenses. 138
(2) Division (H)(1) of this section applies only to an 139
individual who is either of the following: 140
(a) The designated beneficiary of the ABLE account; 141
(b) An individual whose eligibility for the means-tested 142
program is conditioned on the ABLE account's designated 143
beneficiary disclosing the designated beneficiary's income, 144
resources, or both to the entity administering the means-tested 145
public assistance program. 146
(3) Notwithstanding any provision of the Revised Code to 147
the contrary, all information related to an ABLE account 148
obtained by the treasurer of state under this section is not a 149
public record under section 149.43 of the Revised Code. 150
Section 2. That existing sections 113.51 and 113.53 of the 151
Revised Code are hereby repealed. 152
Section 3. All items in this act are hereby appropriated 153
as designated out of any moneys in the state treasury to the 154
credit of the designated fund. For all operating appropriations 155
made in this act, those in the first column are for fiscal year 156
2026 and those in the second column are for fiscal year 2027. 157
The operating appropriations made in this act are in addition to 158
any other operating appropriations made for these fiscal years. 159
Section 4. 160
161

S. B. No. 128 As Introduced

1 2 3 4 5

A TOS TREASURER OF STATE
B Dedicated Purpose Fund Group
C 4E90 090639 STABLE Maintenance Fee \$900,000 \$900,000 Subsidy
D TOTAL Dedicated Purpose Fund Group \$900,000 \$900,000 E TOTAL ALL BUDGET FUND GROUPS \$900,000 \$900,000

STABLE MAINTENANCE FEE SUBSIDY 162

The foregoing appropriation item 090639, STABLE 163
Maintenance Fee Subsidy, shall be used to subsidize costs of 164
monthly fees incurred by STABLE account holders for eligible 165
individuals with disabilities. 166
Section 5. Within the limits set forth in this act, the 167
Director of Budget and Management shall establish accounts 168
indicating the source and amount of funds for each appropriation 169
made in this act, and shall determine the manner in which 170
appropriation accounts shall be maintained. Expenditures from 171
operating appropriations contained in this act shall be 172
accounted for as though made in, and are subject to all 173
applicable provisions of, the main operating appropriations act 174
of the 136th General Assembly. 175