Bill Text: OR HB2740 | 2011 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to Oregon 529 College Savings Network accounts; appropriating money.

Spectrum: Moderate Partisan Bill (Democrat 7-1)

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2740 Detail]

Download: Oregon-2011-HB2740-Introduced.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 940

                         House Bill 2740

Sponsored by Representative READ; Representatives BARKER,
  DEMBROW, DOHERTY, GELSER, GREENLICK, HUFFMAN, HUNT (Presession
  filed.)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Directs State Registrar of Center for Health Statistics to send
certified copy of birth certificate for each child born in Oregon
to residents of this state to Oregon 529 College Savings Board.
  Requires board to send notice to parents of child indicated on
birth certificate of opportunity to open college savings account.
Directs board to make deposit from Oregon 529 College Savings
Network Fund into account with child as designated beneficiary
when parent acknowledges intent to establish account.  Requires
regular contributions by parent to maintain account.  Directs
board to adopt rules.
  Takes effect July 1, 2012.

                        A BILL FOR AN ACT
Relating to Oregon 529 College Savings Network accounts; creating
  new provisions; amending ORS 348.841, 348.857 and 432.121; 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 432.005 to 432.165. + }
  SECTION 2.  { + The State Registrar of the Center for Health
Statistics shall, within three months after the date of birth of
a child born in Oregon to residents of this state, send a
certified copy of the child's birth certificate to the Oregon 529
College Savings Board for the purposes of implementing section 5
of this 2011 Act. + }
  SECTION 3. ORS 432.121 is amended to read:
  432.121. (1) To protect the integrity of vital records and
vital reports, to ensure their proper use and to ensure the
efficient and proper administration of the system of vital
statistics, it shall be unlawful for any person to permit
inspection of, or to disclose information from vital records or
vital reports in the custody of the State Registrar of the Center
for Health Statistics, county registrar or local registrar or to
copy or issue a copy of all or part of any such record or report
unless authorized by this chapter and by rules adopted pursuant
thereto or by order of a court of competent jurisdiction. Rules
adopted under this section shall provide for adequate standards
of security and confidentiality of vital records and vital
reports.  The state registrar shall adopt rules to ensure that,
for records of dissolution of marriage issued in proceedings
under ORS 107.085 or 107.485, Social Security numbers of the
parties are kept confidential and exempt from public inspection.
  (2) The State Registrar of the Center for Health Statistics
shall authorize the inspection, disclosure and copying of the
information referred to in subsection (1) of this section as
follows:
  (a) To the subject of the record; spouse, child, parent,
sibling or legal guardian of the subject of the record; an
authorized representative of the subject of the record, spouse,
child, parent, sibling or legal guardian of the subject of the
record; and, in the case of death, marriage or divorce records,
to other next of kin.
  (b) When a person demonstrates that a death, marriage or
divorce record is needed for the determination or protection of a
personal or property right.
  (c) When 100 years have elapsed after the date of birth or 50
years have elapsed after the date of death, marriage or divorce.
  (d) When the person requesting the information demonstrates
that the person intends to use the information solely for
research purposes. In order to receive the information, the
person must submit a written request to the state registrar
requesting a research agreement. The state registrar shall issue
a research agreement if the person demonstrates that the
information will be used only for research and will be held
confidential. The research agreement shall prohibit the release
by the person of any information other than that authorized by
the agreement that might identify any person or institution.
  (e) To the federal agency responsible for national vital
statistics, upon request. The copies or data may be used solely
for the conduct of official duties. Before furnishing the
records, reports or data, the state registrar shall enter into an
agreement with the federal agency indicating the statistical or
research purposes for which the records, reports or data may be
used. The agreement shall also set forth the support to be
provided by the federal agency for the collection, processing and
transmission of the records, reports or data. Upon written
request of the federal agency, the state registrar may approve,
in writing, additional statistical or research uses of the
records, reports or data supplied under the agreement.
  (f) To federal, state and local governmental agencies, upon
request. The copies or data may be used solely for the conduct of
official duties of the requesting governmental agency.
  (g) To offices of vital statistics outside this state when such
records or other reports relate to residents of those
jurisdictions or persons born in those jurisdictions. Before
furnishing the records, reports or data, the state registrar
shall enter into an agreement with the office of vital
statistics. The agreement shall specify the statistical and
administrative purposes for which the records, reports or data
may be used and the agreement shall further provide instructions
for the proper retention and disposition of the copies. Copies
received by the Center for Health Statistics from offices of
vital statistics in other states shall be handled in the same
manner as prescribed in this section.
  (h) To an investigator licensed under ORS 703.430, upon
request.
   { +  (i) To the Oregon 529 College Savings Board as required
by section 2 of this 2011 Act. + }
  (3) The state registrar, upon request of a family member or
legal representative, shall issue a certified copy or other copy
of a death certificate containing the cause of death information
as provided in subsection (2) of this section or as follows:
  (a) When a person has demonstrated through documented evidence
a need for the cause of death to establish a legal right or
claim.
  (b) When the request for the copy is made by or on behalf of an
organization that provides benefits to the decedent's survivors
or beneficiaries.
  (4) Nothing in this section prohibits the release of
information or data that would not identify any person or
institution named in a vital record or a vital report.
  (5) Nothing in this section shall prohibit a health care
provider from disclosing information contained in the provider's
records as otherwise allowed by law.
  (6) Nothing in this section shall be construed to permit
disclosure of information contained in the 'Information for
Medical and Health Use Only' section of the birth certificate,
fetal death report or the 'Information for Statistical Purposes
Only' section or other confidential section of the application,
license and record of marriage or certificate of divorce, unless
specifically authorized by the state registrar for statistical or
research purposes. The data shall not be subject to subpoena or
court order and shall not be admissible before any court,
tribunal or judicial body.
  (7) All forms and procedures used in the issuance of certified
copies of vital records and vital reports shall be uniform and
provided by or approved by the state registrar. All certified
copies issued shall have security features that safeguard the
document against alteration, counterfeiting, duplication or
simulation without ready detection.
  (8) Each copy issued shall show the date of filing. Copies
issued from records marked 'Amended' shall be similarly marked
and shall show the effective date of the amendment. Copies issued
from records marked 'Delayed' shall be similarly marked and shall
include the date of filing and a description of the evidence used
to establish the delayed certificate.
  (9) Any copy issued of a certificate of foreign birth shall
indicate this fact and show the actual place of birth and the
fact that the certificate is not proof of United States
citizenship for an adoptive child.
  (10) Appeals from decisions of the state registrar to refuse to
disclose information or to permit inspection or copying of
records as prescribed by this section and rules adopted pursuant
thereto shall be made under ORS chapter 183.
  (11) The state registrar shall adopt rules to implement this
section in accordance with the applicable sections of ORS chapter
183.
  (12) Indexes of deaths, marriages or divorces that list names,
dates of events, county of events or certificate numbers may be
disclosed.
  SECTION 4.  { + Section 5 of this 2011 Act is added to and made
a part of ORS 348.841 to 348.873. + }
  SECTION 5.  { + (1) Within 30 days after receiving a certified
copy of a birth certificate under section 2 of this 2011 Act, the
Oregon 529 College Savings Board shall notify the parents of the
child whose birth is recorded on the birth certificate, as the
parents' names appear on the birth certificate, of the
opportunity to open an account under subsection (2) of this
section for the benefit of their child as designated beneficiary
of the account.  The notice shall be sent to the address or
addresses of the child's parents as the address or addresses
appear on the birth certificate. The board shall adopt rules
specifying the contents of the notice. The notice must, at a
minimum, include the following:
  (a) The purpose of the account;
  (b) Actions the parents must take to establish an account in
their names as account owners, either individually or jointly,
and to maintain the account, including but not limited to the
requirements for a matching contribution and ongoing regular
contributions as required under subsection (3) of this section;

  (c) Actions the parents must take to inform the board if the
parents do not want to establish an account;
  (d) How, when and for what purposes qualified withdrawals from
the account may be made; and
  (e) Other information as designated by the board by rule.
  (2)(a) Upon receipt of an acknowledgment from one or both
parents of a child on whose behalf a notice was sent under
subsection (1) of this section that one or both parents want to
establish an account for their child as designated beneficiary,
and upon compliance with all other requirements preliminary to
establishing an account as set forth by the board by rule, the
board shall establish an account and make an initial deposit into
the account of at least $100, or such other amount as the board
may specify by rule, from the Oregon 529 College Savings Network
Fund. The account shall designate:
  (A) One or both parents, individually or jointly, as account
owner or account owners; and
  (B) The child whose birth is recorded on the birth certificate
as designated beneficiary.
  (b) Only one account per child may be established under this
subsection.
  (3) Parents of the designated beneficiary of an account
established under subsection (2) of this section shall do all of
the following in order to maintain the account:
  (a) Make a matching contribution in an amount that equals the
amount deposited into the account by the board under subsection
(2) of this section within 12 months after the board's deposit.
The contribution required by this paragraph may be made in
installments at intervals to be determined by the board by rule
provided that the full amount of the matching contribution is
deposited within 12 months after the board's deposit.
  (b) Make regular contributions to the account in amounts and at
intervals as determined by the board by rule.
  (c) Comply with any other requirement established by the board
by rule.
  (4) A withdrawal from an account established under this section
is a nonqualified withdrawal:
  (a) Unless the account owner or account owners have made the
matching and regular contributions required by subsection (3) of
this section for such period of time as is determined by the
board by rule to evidence the intention of the account owner or
account owners to maintain the account on behalf of the
designated beneficiary; or
  (b) If the withdrawal would reduce the balance in the account
to an amount that is less than the amount of the deposit made by
the board under subsection (2) of this section.
  (5)(a) A parent who is younger than 18 years of age at the time
an account is established under subsection (2) of this section
must have a person who is 18 years of age or older cosign as
account owner unless the parent is married or has been
emancipated by judgment of the court under ORS 419B.550 to
419B.558.
  (b) Upon reaching the age of 18 years, a parent may make
application to the board to remove the cosigner designated under
paragraph (a) of this subsection as account owner of the account.
  (6)(a) The board may, upon determining that a child for whom an
account has not been established under this section has been
lawfully adopted, send notice as provided in subsection (1) of
this section to the adoptive parents with modifications to the
notice as necessary to the circumstances of the adoptive parents
and the adopted child and as provided by the board by rule.
  (b) If an account has already been established under this
section for the adopted child, the adoptive parents may apply to
the board to change the designated account owners, if different
from the adoptive parents, to the adoptive parents as account
owners in accordance with rules adopted by the board.
  (c) All other provisions of this section shall apply to
accounts established for an adopted child under this subsection.
  (7) The board shall adopt rules to administer the provisions of
this section. + }
  SECTION 6. ORS 348.841 is amended to read:
  348.841. As used in ORS 348.841 to 348.873:
  (1) 'Account' means an individual account established in
accordance with ORS 348.841 to 348.873.
  (2) 'Account owner' means the person who has the right to
withdraw funds from the account. The account owner may also be
the designated beneficiary of the account { + , except for
accounts established under section 5 of this 2011 Act + }.
  (3) 'Board' means the Oregon 529 College Savings Board
established under ORS 348.849.
  (4) 'Designated beneficiary' means, except as provided in ORS
348.867, the individual designated at the time the account is
opened as having the right to receive a qualified withdrawal for
the payment of qualified higher education expenses, or if the
designated beneficiary is replaced in accordance with ORS
348.867, the replacement.
  (5) 'Financial institution' means a bank, a commercial bank, a
national bank, a savings bank, a savings and loan, a thrift
institution, a credit union, an insurance company, a trust
company, a mutual fund, an investment firm or other similar
entity authorized to do business in this state.
  (6) 'Higher education institution' means an eligible education
institution as defined in section 529(e)(5) of the Internal
Revenue Code.
  (7) 'Internal Revenue Code' means the federal Internal Revenue
Code.
  (8) 'Member of the family' shall have the same meaning as
contained in section 529(e) of the Internal Revenue Code.
  (9) 'Network' means the Oregon 529 College Savings Network
established under ORS 348.841 to 348.873.
  (10) 'Nonqualified withdrawal' means a withdrawal from an
account that is not a qualified withdrawal.
  (11) 'Qualified higher education expenses' means tuition and
other permitted expenses as set forth in section 529(e) of the
Internal Revenue Code for the enrollment or attendance of a
designated beneficiary at a higher education institution.
  (12) 'Qualified withdrawal' means a withdrawal made as
prescribed under ORS 348.870 and made:
  (a) From an account to pay the qualified higher education
expenses of the designated beneficiary;
  (b) As the result of the death or disability of the designated
beneficiary;
  (c) As the result of a scholarship, allowance or payment
described in section 135(d)(1)(A), (B) or (C) of the Internal
Revenue Code that is received by the designated beneficiary, but
only to the extent of the amount of the scholarship, allowance or
payment; or
  (d) As a rollover or change in the designated beneficiary
described in ORS 348.867.
  SECTION 7. ORS 348.857 is amended to read:
  348.857. (1) An account owner may establish an account by { + :
  (a) + } Making an initial contribution to the Oregon 529
College Savings Network in the name of the designated
beneficiary { + ; or
  (b) Complying with the provisions of section 5 of this 2011
Act + }.   { - Once a 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.  { + Once a contribution is made it becomes
part of the network and subject to the provisions of ORS 348.841
to 348.873. + }
  (3) Contributions to an account shall be made only in cash.
  (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 8.  { + Sections 2 and 5 of this 2011 Act and the
amendments to ORS 348.841, 348.857 and 432.121 by sections 3, 6
and 7 of this 2011 Act apply to children born in Oregon to
residents of this state on or after the effective date of this
2011 Act. + }
  SECTION 9.  { + This 2011 Act takes effect on July 1, 2012. + }
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