Bill S7795-2013

Relates to tuition assistance program awards

Relates to tuition assistance program awards.

Details

Actions

  • Jun 12, 2014: referred to higher education
  • Jun 12, 2014: DELIVERED TO ASSEMBLY
  • Jun 12, 2014: PASSED SENATE
  • Jun 11, 2014: ORDERED TO THIRD READING CAL.1364
  • Jun 11, 2014: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Jun 9, 2014: REFERRED TO HIGHER EDUCATION

Votes

VOTE: COMMITTEE VOTE: - Rules - Jun 11, 2014
Ayes (21): Skelos, Libous, Bonacic, Carlucci, Farley, Flanagan, Hannon, Larkin, LaValle, Marcellino, Maziarz, Nozzolio, Seward, Valesky, Little, Stewart-Cousins, Breslin, Dilan, Krueger, Parker, Perkins
Ayes W/R (2): Montgomery, Gianaris
Excused (2): Hassell-Thompson, Espaillat

Memo

BILL NUMBER:S7795

TITLE OF BILL: An act to amend the education law, in relation to tuition assistance program awards

PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is increase the maximum amount of a tuition assistance program (TAP) award and to increase the net taxable income eligibility.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1. increases the maximum TAP award to six thousand four hundred seventy dollars phased in over the next two years, and increases the maximum income eligibility from $80,000 to $100,000 and adjusts the TAP schedule accordingly for those who receive awards beginning in 2015-2016. Additionally, this section increases the income threshold for independent students and adjusts the independent TAP schedule according for those students first receiving aid in 2015-2016.

Section 2. sets forth the effective date.

EXISTING LAW:

Currently, the maximum TAP award is $5,165 and the maximum income eligibility is $80,000.

JUSTIFICATION:

The Tuition Assistance Program (TAP) award amounts have not been increased in over a decade. During that time, college costs have increased dramatically. Tuition at the State University of New York (SUNY) has surpassed the maximum TAP award amount and tuition at the City University of New York (CUNY) will do the same in the near future. This bill would increase the maximum award amount to reflect the increases in public higher education tuition costs.

Additionally, this bill raises the net taxable income eligibility threshold to capture more New York State families. Many families throughout the state are struggling to pay for higher education. Students graduate with crushing student loan debt burdens.

This bill will alleviate some of that burden by providing an increased award to all eligible recipients and to allow for more middle class families to be eligible to receive an award.

PRIOR LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

No cost this year.

EFFECTIVE DATE:

This act shall take effect April 1, 2015, provided that the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date is authorized and directed to be made and completed by the president of the higher education services corporation on or before such effective date.


Text

STATE OF NEW YORK ________________________________________________________________________ 7795 IN SENATE June 9, 2014 ___________
Introduced by Sen. LAVALLE -- read twice and ordered printed, and when printed to be committed to the Committee on Higher Education AN ACT to amend the education law, in relation to tuition assistance program awards THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph a of subdivision 3 of section 667 of the educa- tion law, as amended by section 1 of part B of chapter 60 of the laws of 2000, item 1 of clause (A) of subparagraph (i) as amended by section 1 of part H of chapter 58 of the laws of 2011, the opening paragraph of item 1 of clause (A) of subparagraph (i) as amended by section 2 of part X of chapter 56 of the laws of 2014, subitem (a) of item 1 of clause (A) of subparagraph (i) as amended by section 2 of part U of chapter 56 of the laws of 2014, subitem (b) of item 1 of clause (A) of subparagraph (i) as amended by section 3 of part U of chapter 56 of the laws of 2014, subitem (c) of item 1 of clause (A) of subparagraph (i) as amended by section 1 of part U of chapter 56 of the laws of 2014, subitem (d) of item 1 of clause (A) of subparagraph (i) as added by section 1 of part E of chapter 58 of the laws of 2011, item 2 of clause (A) of subparagraph (i) as amended by section 2 of part H of chapter 58 of the laws of 2011 and subparagraph (iii) as amended by section 3 of part H of chapter 58 of the laws of 2011, is amended to read as follows: a. Amount. The president shall make awards to students enrolled in degree-granting institutions or registered not-for-profit business schools qualified for tax exemption under S 501(c)(3) of the internal revenue code for federal income tax purposes in the following amounts: (i) For each year of undergraduate study, assistance shall be provided as computed on the basis of the amount which is the lesser of the following: (A) (1) In the case of students who have not been granted an exclusion of parental income, who have qualified as an orphan, foster child, or ward of the court for the purposes of federal student financial aid programs authorized by Title IV of the Higher Education Act of 1965, as amended, or had a dependent for income tax purposes during the tax year
next preceding the academic year for which application is made, except for those students who have been granted exclusion of parental income who have a spouse but no other dependent: (a) For students first receiving aid after nineteen hundred ninety- three--nineteen hundred ninety-four and before two thousand--two thou- sand one, four thousand two hundred ninety dollars; or (b) For students first receiving aid in nineteen hundred ninety-three- -nineteen hundred ninety-four or earlier, three thousand seven hundred forty dollars; or (c) For students first receiving aid in two thousand--two thousand one and thereafter, five thousand dollars, except starting in two thousand fourteen-two thousand fifteen and thereafter such students shall receive five thousand one hundred sixty-five dollars; or (d) FOR STUDENTS FIRST RECEIVING AID IN TWO THOUSAND FIFTEEN--TWO THOUSAND SIXTEEN AND THEREAFTER, SIX THOUSAND FOUR HUNDRED SEVENTY DOLLARS; OR (E) For undergraduate students enrolled in a program of study at a non-public degree-granting institution that does not offer a program of study that leads to a baccalaureate degree, or at a registered not-for- profit business school qualified for tax exemption under section 501(c)(3) of the internal revenue code for federal income tax purposes that does not offer a program of study that leads to a baccalaureate degree, four thousand dollars. Provided, however, that this subitem shall not apply to students enrolled in a program of study leading to a certificate or degree in nursing. (2) In the case of students receiving awards pursuant to subparagraph (iii) of this paragraph and those students who have been granted exclu- sion of parental income who have a spouse but no other dependent. (a) FOR STUDENTS RECEIVING AID IN TWO THOUSAND FIFTEEN--TWO THOUSAND SIXTEEN AND THEREAFTER, SIX THOUSAND FOUR HUNDRED SEVENTY DOLLARS, OR (B) For students first receiving aid in nineteen hundred ninety-four --nineteen hundred ninety-five and nineteen hundred ninety-five--nine- teen hundred ninety-six and thereafter, three thousand twenty-five dollars, or [(b)] (C) For students first receiving aid in nineteen hundred nine- ty-two--nineteen hundred ninety-three and nineteen hundred ninety-three- -nineteen hundred ninety-four, two thousand five hundred seventy-five dollars, or [(c)] (D) For students first receiving aid in nineteen hundred nine- ty-one--nineteen hundred ninety-two or earlier, two thousand four hundred fifty dollars; or (B) (1) Ninety-five percent of the amount of tuition (exclusive of educational fees) charged and, if applicable, the college fee levied by the state university of New York pursuant to the April first, nineteen hundred sixty-four financing agreement with the New York state dormitory authority. (2) For the two thousand one--two thousand two academic year and ther- eafter one hundred percent of the amount of tuition (exclusive of educa- tional fees) charged and, if applicable, the college fee levied by the state university of New York pursuant to the April first, nineteen hundred sixty-four financing agreement with the New York state dormitory authority. (ii) Except for students as noted in subparagraph (iii) of this para- graph, the base amount as determined from subparagraph (i) of this para- graph, shall be reduced in relation to income as follows:
Amount of income Schedule of reduction of base amount (A) Less than [seven] EIGHT None thousand SEVEN HUNDRED FIFTY dollars (B) [Seven] EIGHT thousand Seven per centum of excess SEVEN HUNDRED FIFTY over [seven] EIGHT dollars or more, but less than thousand SEVEN HUNDRED [eleven] THIRTEEN thousand FIFTY dollars SEVEN HUNDRED FIFTY DOLLARS (C) [Eleven] THIRTEEN thousand [Two] THREE SEVEN HUNDRED FIFTY hundred [eighty] FIFTY dollars or more, but less than dollars plus ten per centum of excess [eighteen] TWENTY-TWO over [eleven] THIRTEEN thousand FIVE HUNDRED thousand SEVEN HUNDRED dollars FIFTY dollars (D) [Eighteen] TWENTY-TWO [Nine] ONE THOUSAND thousand FIVE HUNDRED TWO hundred dollars or more, but not more [eighty] TWENTY-FIVE dollars than [eighty] ONE plus twelve per centum of HUNDRED thousand dollars excess over [eighteen] TWENTY-TWO thousand FIVE HUNDRED dollars; PROVIDED THAT DEPENDENT STUDENTS WHOSE PARENTAL INCOME EXCEEDS EIGHTY THOUSAND DOLLARS BUT NOT MORE THAN ONE HUNDRED THOUSAND DOLLARS, OR STUDENTS WITH A DEPENDENT AND INCOME IN EXCESS OF EIGHTY THOUSAND DOLLARS, BUT NOT MORE THAN ONE HUNDRED THOUSAND DOLLARS, SHALL ONLY BE ELIGIBLE FOR AWARDS IF HE OR SHE FIRST RECEIVES AN AWARD BEGINNING WITH THE TWO THOUSAND FIFTEEN--TWO THOUSAND SIXTEEN ACADEMIC YEAR. (iii) (A) For students who have been granted exclusion of parental income and were single with no dependent for income tax purposes during the tax year next preceding the academic year for which application is made, the base amount, as determined in subparagraph (i) of this para- graph, shall be reduced in relation to income as follows: Amount of income Schedule of reduction of base amount (1) Less than [three] TEN thousand None FIVE HUNDRED dollars (2) [Three] TEN thousand Thirty-one per centum of FIVE HUNDRED dollars or more, amount in excess of but not more than [ten] [three] TEN thousand THIRTY-FIVE thousand dollars FIVE HUNDRED dollars; PROVIDED THAT STUDENTS WITH INCOMES IN EXCESS OF TEN THOUSAND DOLLARS BUT NOT MORE THAN THIRTY-FIVE THOUSAND DOLLARS, SHALL ONLY BE ELIGIBLE FOR AWARDS IF HE OR SHE FIRST RECEIVES AN AWARD BEGINNING WITH THE TWO THOUSAND FIFTEEN--TWO THOUSAND SIXTEEN ACADEMIC YEAR. (B) For those students who have been granted exclusion of parental income who have a spouse but no other dependent, for income tax purposes during the tax year next preceding the academic year for which applica-
tion is made, the base amount, as determined in subparagraph (i) of this paragraph, shall be reduced in relation to income as follows: Amount of income Schedule of reduction of base amount (1) Less than [seven] EIGHT None thousand SEVEN HUNDRED FIFTY dollars (2) [Seven] EIGHT thousand Seven per centum of excess SEVEN HUNDRED FIFTY over [seven] dollars or more, but less than EIGHT thousand [eleven] THIRTEEN SEVEN HUNDRED FIFTY thousand SEVEN HUNDRED dollars FIFTY dollars (3) [Eleven] THIRTEEN [Two] THREE thousand SEVEN HUNDRED hundred [eighty] FIFTY dollars or FIFTY dollars plus more, but less than ten per centum of excess [eighteen] TWENTY-TWO over [eleven] thousand FIVE HUNDRED THIRTEEN thousand dollars SEVEN HUNDRED FIFTY dollars (4) [Eighteen] TWENTY-TWO [Nine] ONE thousand FIVE HUNDRED THOUSAND TWO dollars or more, but not hundred [eighty] TWENTY-FIVE more than [forty] FIFTY dollars plus twelve per centum thousand dollars of excess over [eighteen] TWENTY-TWO thousand FIVE HUNDRED dollars; PROVIDED THAT STUDENTS WITH INCOMES IN EXCESS OF FORTY THOUSAND DOLLARS BUT NOT MORE THAN FIFTY THOUSAND DOLLARS, SHALL ONLY BE ELIGIBLE FOR AWARDS IF HE OR SHE FIRST RECEIVES AN AWARD BEGINNING WITH THE TWO THOU- SAND FIFTEEN--TWO THOUSAND SIXTEEN ACADEMIC YEAR. (iv) If the amount of reduction is not a whole dollar, it shall be reduced to the next lowest whole dollar. In the case of any student who has received four or more payments pursuant to any and all awards provided for in this subdivision, for the two thousand--two thousand one academic year the base amount shall be reduced by an additional one hundred fifty dollars for the two thousand one--two thousand two academ- ic year and thereafter the base amount shall be reduced by an additional one hundred dollars. (v) The award shall be the net amount of the base amount determined pursuant to subparagraph (i) of this paragraph reduced pursuant to subparagraph (ii) or (iii) of this paragraph but the award shall not be reduced for the two thousand--two thousand one and two thousand one--two thousand two academic years below two hundred seventy-five dollars if the amount of income is eighty thousand dollars or less and more than seventy thousand dollars, three hundred twenty-five dollars if the amount of income is seventy thousand dollars or less and more than sixty thousand dollars and four hundred twenty-five dollars if the amount of income is sixty thousand dollars or less. (vi) For the two thousand two--two thousand three academic year and thereafter, the award shall be the net amount of the base amount deter- mined pursuant to subparagraph (i) of this paragraph reduced pursuant to subparagraph (ii) or (iii) of this paragraph but the award shall not be reduced below five hundred dollars.
S 2. This act shall take effect April 1, 2015, provided that the addi- tion, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date is authorized and directed to be made and completed by the president of the higher educa- tion services corporation on or before such effective date.

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