and 178.385:

178.380 and 178.385:

����� (1) �ABLE account� means an account established by an eligible individual, owned by the eligible individual and maintained under the qualified ABLE program established by the Oregon 529 Savings Board under ORS 178.380.

����� (2) �ABLE Act� means the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (Division B of P.L. 113-295).

����� (3) �Designated beneficiary� has the same meaning as contained in section 529A of the Internal Revenue Code.

����� (4) �Eligible individual� has the same meaning as contained in section 529A of the Internal Revenue Code.

����� (5) �Internal Revenue Code� means the federal Internal Revenue Code as amended and in effect on December 31, 2023.

����� (6) �Qualified disability expense� has the same meaning as contained in section 529A of the Internal Revenue Code. [2015 c.843 �1; 2016 c.33 �1a; 2017 c.367 �3; 2018 c.57 �1; 2021 c.528 �1; 2022 c.83 �2; 2023 c.171 �2; 2024 c.75 �2]

����� 178.380 Establishment of qualified ABLE program; requirements for program; treatment of contributions to ABLE account; fees; rules. (1) The Oregon 529 Savings Board shall establish by rule and maintain a qualified ABLE program in accordance with the requirements of the ABLE Act.

����� (2) The rules must:

����� (a) Allow a person to make contributions for a taxable year to an ABLE account established for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account;

����� (b) Limit a designated beneficiary to one ABLE account for purposes of this section;

����� (c) Require cash-only contributions to ABLE accounts;

����� (d) Provide for a separate accounting for each designated beneficiary of an ABLE account;

����� (e) Provide that a designated beneficiary of an ABLE account may not, directly or indirectly, direct the investment of contributions to the account, or earnings on the account, more than two times in any calendar year;

����� (f) Prohibit the use of a designated beneficiary�s interest in an ABLE account as security for a loan;

����� (g) Establish limitations on aggregate contributions to an ABLE account on behalf of a designated beneficiary; and

����� (h) Satisfy all other requirements of section 529A of the Internal Revenue Code, the ABLE Act, rules adopted by the United States Secretary of the Treasury under the ABLE Act and other applicable federal law.

����� (3) Notwithstanding any other provision of law that requires consideration of one or more financial circumstances of an individual for the purpose of determining the eligibility to receive, or the amount of, any assistance or benefit authorized by law to be provided to or for the benefit of the individual, any amount in an ABLE account of the individual, including earnings on the account, any contributions to the ABLE account of the individual and any distribution for qualified disability expenses, shall be disregarded for such purpose with respect to any period during which the individual maintains, makes contributions to or receives distributions from the ABLE account.

����� (4)(a) Except as provided by federal law, upon the death of a designated beneficiary, amounts in an ABLE account may be transferred to the estate of the designated beneficiary or an ABLE account of another eligible individual specified by the designated beneficiary or the estate of the designated beneficiary.

����� (b) Except as required by federal law, the Department of Human Services and the Oregon Health Authority may not seek payment under ORS 416.350 or section 529A(f) of the Internal Revenue Code from amounts in an ABLE account or from amounts transferred from an ABLE account under paragraph (a) of this subsection.

����� (5) The board may collect application, account or administrative fees to defray the costs of the ABLE program.

����� (6) The board shall provide information to designated beneficiaries regarding the potential impact to their benefits and services if contributions are made to a workplace retirement account. [2015 c.843 �2; 2016 c.33 �1b; 2017 c.367 �1; 2019 c.511 �1; 2023 c.156 �1]

����� 178.385 Right to direct investments for ABLE accounts; insurance and guarantees prohibited; liability for loss. (1)(a) Except as permitted in section 529A of the Internal Revenue Code, no person other than the Oregon 529 Savings Board or a financial institution in which Oregon 529 Savings Network moneys have been invested has the right to direct the investment of amounts held by the network in trust, or any earnings from those amounts.

����� (b) Nothing in this subsection prohibits a designated beneficiary from directing the investment of contributions to the network or earnings from those contributions by selecting between investment options offered under the network in accordance with rules adopted by the board.

����� (2)(a) The network, the board, a board member and the State of Oregon may not insure any account or guarantee any rate of return or any interest rate on any contribution.

����� (b) The network, the board, a board member and the State of Oregon are not liable for any loss incurred by any person as a result of participating in the network.

����� (3) The board, in its sole discretion and without liability, may remove the network�s funds from any financial institution and reinvest the funds in a similar or different investment alternative at another financial institution pursuant to a contract, agreement or arrangement entered into under ORS 178.315 (4).

����� (4) This section applies only to ABLE accounts. [2017 c.367 �2]

PENALTIES

����� 178.990 Penalties. (1)(a) In addition to any other penalty provided by law, the Commissioner of the Bureau of Labor and Industries may assess against an employer who has engaged in an unlawful practice under ORS 178.250 a civil penalty in an amount up to $100 for each employee who is eligible to participate in the plan developed under ORS 178.205, not to exceed an aggregate amount of $5,000 in a calendar year.

����� (b) The commissioner may, upon a showing of any mitigating or aggravating circumstances, adjust the amount of a civil penalty imposed under this section.

����� (2) Civil penalties assessed under this section shall be imposed in the manner provided in ORS 183.745.

����� (3) Civil penalties recovered under this section shall be applied first toward reimbursing costs incurred by the commissioner in conducting inquiries and investigations under ORS 178.255. Any remaining amounts shall be deposited in the Oregon Retirement Savings Plan Administrative Fund established under ORS