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SENATE FLOOR VERSION
March 30, 2021
ENGROSSED HOUSE
BILL NO. 1962 By: Nollan and Bell of the
House
and
Quinn of the Senate
An Act relating to higher education; amending 70 O.S.
2011, Section 3970.3, which relates to the Oklahoma
College Savings Plan Act; modifying definition of
qualified higher education expenses ; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 70 O.S. 2011, Section 397 0.3, is
amended to read as follows:
Section 3970.3. As used in this act:
1. "Account" means an individual trust account or savings
account established as prescribed in this act;
2. "Account owner" means the person or other entity allowable
under Section 529 of the Internal Revenue Code designated at the
time an account is opened as having the right to withdraw monies
from the account before the account is disbursed to or for the
benefit of the designated beneficiary;
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3. "Affinity program" means any supplemental feature to the
Oklahoma College Savings Plan that offers additional value for plan
participants including, but not limited to, rebate contributions
from affiliated credit cards;
4. "Board" means the Board of Trustees of the Oklahoma College
Savings Plan;
5. "Designated beneficiary" means:
a. with respect to an account, the person designated at
the time the account is opened as the person whose
higher education expenses are expected to be paid from
the account,
b. in the case of a change in benefi ciaries described in
Section 3970.7 of this title, the individual who is
the new beneficiary, or
c. in the case of an interest in the program created by
this act purchased by the State of Oklahoma or a local
government in this state, or an agency or
instrumentality of such state or local government, or
an organization described in Section 501(c)(3) of the
Internal Revenue Code and exempt from taxation under
Section 501(a) of that Code as part of a scholarship
program operated by such government or organizat ion,
the individual(s) receiving such interest or
scholarship;
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6. "Eligible educational institution " means an institution as
described in Section 481 of the Higher Education Act of 1965 (20
U.S.C. 1088), and is eligible to participate in a program under
Title IV of that Act;
7. "Financial institution " means any bank, commercial bank,
national bank, savings bank, savings and loan association, credit
union, an insurance company, brokerage firm, or other similar entity
that is authorized to do business in th is state;
8. "Internal Revenue Code" means the Internal Revenue C ode of
1986, as amended;
9. "Member of family" means an individual who bears a
relationship to another individual which is a relationship described
in Section 529 of the Internal Revenue Co de;
10. "Nonqualified withdrawal" means a withdrawal from an
account other than one of the following:
a. a qualified withdrawal,
b. a withdrawal made as a result of the death or
disability of the designated beneficiary of an
account,
c. withdrawal that is made on the account of a
scholarship or the allowance or payment described in
Section 529 of the Internal Revenue Code, received by
the designated beneficiary to the extent the amount of
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the refund does not exceed the amount of the
scholarship, allowance, or payment, or
d. a rollover or change of designated beneficiary as
permitted by subsection F of Section 3970.7 of this
title;
11. "Program" means the Oklahoma College Savings Plan
established under this act;
12. "Qualified higher education expenses " means tuition, fees,
books, supplies, and equipment required for the enrollment or
attendance of a designated beneficiary at an eligible educational
institution, including room and board expenses, to the extent such
expenses are allowable that meet the definition of "qualified higher
education expenses" under Section 529 of the Internal Revenue Code;
and
13. "Qualified withdrawal " means a withdrawal from an account
to pay the qualified higher education expenses of the designated
beneficiary of the account, b ut only if the withdrawal is made in
accordance with this act.
SECTION 2. This act shall become effective November 1, 2021.
COMMITTEE REPORT BY: COMMITTEE ON EDUCATION
March 30, 2021 - DO PASS