All Roll Calls
Yes: 150 • No: 2
OklahomaSB 1989Oklahoma 2026 Regular SessionSenateWALLET
Oklahoma College Savings Plan; expanding options for making contributions to a 529 Savings Plan. Effective date.
Sponsored By: Nikki Nice (Democratic)
Signed by Governor
Senate Committee
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 1 benefits, 1 costs, 4 mixed.
529 scholarship accounts by governments and nonprofits
Beginning Nov 1, 2026, the state, local governments, and 501(c)(3) nonprofits can open 529 accounts to fund scholarships. These accounts do not need a named beneficiary at opening. Each person who later gets a scholarship from the account is treated as a beneficiary.
Transfer 529 funds, but caps apply
Beginning Nov 1, 2026, you may change the 529 beneficiary to a family member and move money between Oklahoma 529s or to another state’s 529. The Board must tell you about any tax effects. To prevent overfunding, the Board sets a maximum total balance per beneficiary, may require contributor certifications, and aggregates balances across programs. If a change or transfer would push a beneficiary over the cap, the extra is rejected and returned to the owner, or must be moved or withdrawn.
Withdrawal rules and penalties for 529s
Beginning Nov 1, 2026, as an account owner you can withdraw money with 60 days’ notice, unless the Board allows less. The Board may require proof for school costs, and qualified withdrawals may be paid by a joint check to the student and the school. For nonqualified withdrawals, the Board can withhold up to 5% as a penalty. If too little is withheld, you must pay the rest by April 15 of the next tax year.
No directing investments or using 529 as collateral
Beginning Nov 1, 2026, you cannot direct how a 529 account’s money is invested, except as federal 529 rules allow. You also cannot use a 529 account interest as collateral for a loan. Any pledge is not valid.
Open and fund Oklahoma 529 accounts
Beginning Nov 1, 2026, anyone can open an Oklahoma 529 account. You must file the Board’s form, pay a one-time application fee, and make the minimum first deposit. After opening, anyone can add money. You can pay only with cash or approved digital payment networks.
Stronger reporting and account moves if contractors change
Beginning Nov 1, 2026, banks and other institutions that hold 529 accounts must file all IRS and Oklahoma tax reports. The program manager must report yearly account totals and distributions to the Board. If the Board removes a contractor bank, the Board picks the new institution and investments unless IRS rules let owners choose.
Sponsors & Cosponsors
Sponsor
Nikki Nice
Democratic • Senate
Cosponsors
Mike Osburn
Republican • House
Roll Call Votes
House vote • 5/6/2026
Top_of_Page
Yes: 86 • No: 2
House vote • 4/21/2026
DO PASS
Yes: 25 • No: 0
House vote • 4/21/2026
DO PASS
Yes: 25 • No: 0
House vote • 4/6/2026
DO PASS
Yes: 7 • No: 0
House vote • 4/6/2026
DO PASS
Yes: 7 • No: 0
Senate vote • 2/19/2026
THIRD READING
Yes: 0 • No: 0
Senate vote • 2/9/2026
Top_of_Page
Yes: 0 • No: 0
Actions Timeline
Approved by Governor 05/12/2026
5/13/2026SenateSent to Governor
5/6/2026SenateSigned, returned to Senate
5/6/2026HouseEnrolled, to House
5/6/2026SenateReferred for enrollment
5/6/2026SenateSigned, returned to Senate
5/6/2026HouseThird Reading, Measure passed: Ayes: 86 Nays: 2
5/6/2026HouseGeneral Order
5/6/2026HouseCR; Do Pass Appropriations and Budget Committee
4/23/2026HouseRecommendation to the full committee; Do Pass Appropriations and Budget Education Subcommittee
4/13/2026HouseReferred to Appropriations and Budget Education Subcommittee
3/31/2026HouseSecond Reading referred to Appropriations and Budget
3/30/2026HouseFirst Reading
2/23/2026HouseEngrossed to House
2/23/2026SenateReferred for engrossment
2/19/2026SenateMeasure passed: Ayes: 44 Nays: 0
2/19/2026SenateGeneral Order, Considered
2/19/2026SenateCoauthored by Representative Osburn (principal House author)
2/17/2026SenatePlaced on General Order
2/11/2026SenateReported Do Pass Revenue and Taxation committee; CR filed
2/9/2026SenateSecond Reading referred to Revenue and Taxation
2/3/2026SenateAuthored by Senator Nice
2/2/2026SenateFirst Reading
2/2/2026Senate
Bill Text
Enrolled (final version)
5/6/2026
Floor (House)
4/23/2026
House Committee Report
4/23/2026
House Committee Report
4/6/2026
Engrossed
2/23/2026
Floor (Senate)
2/10/2026
Senate Committee Report
2/9/2026
Introduced
1/15/2026
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