S T A T E   O F   N E W   Y O R K
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    S. 6420                                                  A. 8562

                      S E N A T E - A S S E M B L Y

                            January 22, 2014
                               ___________

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Higher Educa-
  tion

IN  ASSEMBLY  -- Introduced by M. of A. THIELE -- read once and referred
  to the Committee on Higher Education

AN ACT in relation to enacting the "pay it forward, pay it back program"

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  This  act  shall be known and may be cited as the "pay it
forward, pay it back program".
  S 2. 1. The board of trustees of the state university shall  implement
a  program to permit any student who has been admitted to certain state-
operated institutions of the state  university  to  attend  without  the
payment  of  tuition  if  such student fulfills the requirements of such
program pursuant to the provisions of  this  act.  Such  trustees  shall
identify  two  four-year  institutions  of  the state university and two
community colleges to participate in the "pay it forward,  pay  it  back
program".
  2.  Such  trustees shall provide an application process and administer
the program according to the following criteria:
  (a) A student shall have been a resident of New York state for a peri-
od of one year prior to application.
  (b) A student shall be required to sign a contract to pay the institu-
tion a certain percentage of the student's annual adjusted gross  income
for  a  specified  number  of  years.  The trustees shall determine such
percentage and number of years based on the institution.
  (c) Students shall be required to complete their degree program within
a minimum period of time to be set by the trustees  which  shall  be  no
less than two years and no more than four years.
  (d)  If  a  student  or  former  student  fails  to fulfill any of the
requirements set forth in this subdivision, the trustees  shall  convert
to  a  student loan the full amount of the tuition which would have been
paid by such student, as determined  by  the  trustees,  plus  interest,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD11812-01-3

S. 6420                             2                            A. 8562

according  to  a schedule to be determined by the trustees.  Such repay-
ment may also be required if a recipient fails to  respond  to  requests
for  information  necessary  to  determine  continued eligibility or for
administration of the program.
  (e)  Any  student  who elects to participate in the program under this
act shall be required to  apply  for  federal  Pell  grant  funding  and
tuition  assistance  program funding. Funds awarded under either or both
such programs shall be applied towards the cost of tuition prior  to  an
award under this subparagraph.
  (f)  Students shall be responsible for all other costs including hous-
ing, fees and other non-tuition related charges.
  S 3. The board of trustees of the state university shall establish  an
immediate  funding  source for the "pay it forward, pay it back program"
and include the establishment of a revolving fund  to  deposit  payments
made under such program.
  S  4.  This act shall take effect on the first of July next succeeding
the date on which it shall have become a law;  provided,  however,  that
effective immediately, the addition, amendment and/or repeal of any rule
or regulation necessary for the implementation of this act on its effec-
tive  date  are  authorized  and directed to be made and completed on or
before such effective date.