Bill Text: OR HB2728 | 2011 | Regular Session | Enrolled

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Bill Title: Relating to direct deposits to Oregon 529 College Savings Network accounts; and prescribing an effective date.

Spectrum: Bipartisan Bill

Status: (Passed) 2011-06-28 - Chapter 527, (2011 Laws): Effective date September 29, 2011. [HB2728 Detail]

Download: Oregon-2011-HB2728-Enrolled.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

                            Enrolled

                         House Bill 2728

Sponsored by Representative READ; Representatives BARKER, BREWER,
  CONGER, DEMBROW, DOHERTY, GELSER, GREENLICK, HUFFMAN, HUNT,
  JOHNSON, LINDSAY, MCLANE, SHEEHAN, WAND, Senators EDWARDS, HASS
  (Presession filed.)

                     CHAPTER ................

                             AN ACT

Relating to direct deposits to Oregon 529 College Savings Network
  accounts; creating new provisions; amending ORS 348.857; and
  prescribing an effective date.

Be It Enacted by the People of the State of Oregon:

  SECTION 1.  { + Section 2 of this 2011 Act is added to and made
a part of ORS chapter 305. + }
  SECTION 2.  { + (1) A taxpayer may elect to contribute all or a
portion of a refund of personal income tax to an account that has
been established under ORS 348.857 by direct deposit to the
financial institution managing the account. The amount elected to
be contributed by the taxpayer must be at least $25 and may be
applied as a contribution only for the tax year in which the
refund is issued.
  (2) The election shall be made on a form prescribed by the
Department of Revenue and filed with the taxpayer's tax return
for the tax year or at such other time and in such other manner
as the department may prescribe by rule. The department shall
prescribe by rule the maximum number of accounts to which a
taxpayer may elect to contribute a portion of the refund.
  (3) The election to contribute all or a portion of a refund may
not be changed or revoked.
  (4) The election to contribute all or a portion of a refund
shall be void, and no portion of the refund may be contributed to
an account that has been established under ORS 348.857, if:
  (a) The taxpayer's refund is offset to pay amounts owed by the
taxpayer; or
  (b) The taxpayer's refund is less than the total of the
following:
  (A) The contribution elected in subsection (1) of this section;
  (B) Payments of tax as provided in ORS 316.583 that accompany
the return;
  (C) All contributions to charitable and governmental entities
designated by means of a checkoff as provided in ORS 305.745; and
  (D) All contributions to political parties designated by means
of a checkoff as provided in ORS 305.754. + }
  SECTION 3. ORS 348.857 is amended to read:
  348.857. (1) An account owner may establish an account by
making an initial contribution to the Oregon 529 College Savings
Network in the name of the designated beneficiary. Once a

Enrolled House Bill 2728 (HB 2728-A)                       Page 1

contribution is made it becomes part of the network and subject
to the provisions of ORS 348.841 to 348.873.
  (2) Any person may make a contribution to an account once an
account is opened.
  (3) Contributions to an account shall be made only in cash
 { +  and may be deposited as provided in section 2 of this 2011
Act + }.
  (4) Total contributions to all accounts established on behalf
of a particular beneficiary may not exceed those reasonably
necessary to provide for the qualified higher education expenses
of the designated beneficiary. The Oregon 529 College Savings
Board shall establish maximum contribution limits applicable to
network accounts and shall require the provision of any
information from the account owner and the designated beneficiary
that the board deems necessary to establish these limits.
  (5) Separate records and accounting shall be required for each
account and reports shall be made no less frequently than
annually to the account owner.
  (6) The board may collect application, account or
administrative fees to defray the costs of the network.
  SECTION 4.  { + Section 2 of this 2011 Act and the amendments
to ORS 348.857 by section 3 of this 2011 Act apply to income tax
refunds payable to taxpayers for tax years beginning on or after
January 1, 2012. + }
  SECTION 5.  { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 regular session of the
Seventy-sixth Legislative Assembly adjourns sine die. + }
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Passed by House June 9, 2011

    .............................................................
                         Ramona Kenady Line, Chief Clerk of House

    .............................................................
                                    Bruce Hanna, Speaker of House

    .............................................................
                                   Arnie Roblan, Speaker of House

Passed by Senate June 15, 2011

    .............................................................
                              Peter Courtney, President of Senate

Enrolled House Bill 2728 (HB 2728-A)                       Page 2

Received by Governor:

......M.,............., 2011

Approved:

......M.,............., 2011

    .............................................................
                                         John Kitzhaber, Governor

Filed in Office of Secretary of State:

......M.,............., 2011

    .............................................................
                                   Kate Brown, Secretary of State

Enrolled House Bill 2728 (HB 2728-A)                       Page 3