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 The request for the deduction may be 1 28 withdrawn at any time by filing a written notification of 1 29 withdrawal with the state officer in charge of any of the 1 30 state payroll systems. 1 31 EXPLANATION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