House File 748 - Introduced



                                  HOUSE FILE       
                                  BY  COMMITTEE ON STATE GOVERNMENT

                                  (SUCCESSOR TO HSB 45)


    Passed House, Date               Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing for state employee payroll deductions for
  2    qualified tuition program contributions.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1229HV 81
  5 ec/pj/5

PAG LIN



  1  1    Section 1.  NEW SECTION.  70A.17B  PAYROLL DEDUCTION FOR
  1  2 ELIGIBLE QUALIFIED TUITION PROGRAM CONTRIBUTIONS.
  1  3    1.  The state officer in charge of any of the state payroll
  1  4 systems shall deduct from the wages or salaries of a state
  1  5 officer or employee an amount specified by the officer or
  1  6 employee for payment to an eligible qualified tuition program
  1  7 in a method consistent with current discretionary payroll
  1  8 deductions and on forms prescribed by the payroll
  1  9 administrator.  For purposes of this section, an "eligible
  1 10 qualified tuition program" is a program that meets the
  1 11 requirements of a qualified tuition program under section 529
  1 12 of the Internal Revenue Code and is a program in which at
  1 13 least five hundred state officers or employees request a
  1 14 payroll deduction and the request for the payroll deduction is
  1 15 made by the state officer or employee in writing to the
  1 16 officer in charge of the program.
  1 17    2.  The moneys deducted under this section shall be paid to
  1 18 the eligible qualified tuition program for the benefit of the
  1 19 officer's or employee's account no later than thirty days
  1 20 following the payroll deduction from the wages of the officer
  1 21 or employee.  The deduction may be made even though the
  1 22 compensation paid to an officer or employee is reduced to an
  1 23 amount below the minimum prescribed by law.  Payment to an
  1 24 officer or employee of compensation less the deduction shall
  1 25 constitute a full discharge of claims and demands for services
  1 26 rendered by the officer or employee during the period covered
  1 27 by the payment.  The request for the deduction may be
  1 28 withdrawn at any time by filing a written notification of
  1 29 withdrawal with the state officer in charge of any of the
  1 30 state payroll systems.
  1 31                           EXPLANATION
  1 32    This bill provides that state employees may authorize a
  1 33 deduction from their wages in an amount specified by the
  1 34 employee to be contributed to the employee's account in any
  1 35 qualified tuition program as defined by section 529 of the
  2  1 Internal Revenue Code if at least 500 state employees request
  2  2 a payroll deduction for that particular program.  The bill
  2  3 provides that payroll deductions be paid to the program no
  2  4 later than 30 days following deduction from the employee's
  2  5 wages.  The bill allows an employee to withdraw the request
  2  6 for deduction by written notification to the appropriate
  2  7 payroll officer.
  2  8 LSB 1229HV 81
  2  9 ec:rj/pj/5