NY State Senate Bill 2017-S4132

Senate Bill S4132

2017-2018 Legislative Session

Creates the New York state tuition savings program and the New York state pre-pay tuition fund and reduces distributions from the New York state pre-pay tuition savings program from adjusted gross income

download bill text pdf

Archive: Last Bill Status - In Senate Committee Higher Education Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to higher education
Feb 03, 2017	referred to higher education

co-Sponsors

2017-S4132 (ACTIVE) - Details

Current Committee:: Senate Higher Education
Law Section:: Education Law
Laws Affected:: Add §355-d, Ed L; add §99-aa, St Fin L; amd §612, Tax L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S4593
2015-2016: S223

2017-S4132 (ACTIVE) - Summary

Creates the New York state pre-pay tuition savings program and the New York state pre-pay tuition fund and reduces distributions from the New York state pre-pay tuition savings program from adjusted gross income.

2017-S4132 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4132

 TITLE OF BILL :

An act to amend the education law, in relation to the creation of the
New York state tuition savings program; to amend the state finance
law, in relation to establishing the New York state pre-pay tuition
fund; and to amend the tax law, in relation to reducing distributions
from the New York state pre-pay tuition savings program from adjusted
gross income

 PURPOSE :

To establish the New York State pre-pay tuitions savings program to
allow families to pre-pay the cost of tuition at SUNY or CUNY.

 SUMMARY OF PROVISIONS :

Section 1. Amends the education law to add a new section 355-d to
create the New York State pre-pay tuition savings program.

Section 2. Amends the state finance law to add a new section 99-aa to
establish the New York State pre-pay tuition fund within the custody
of the State Comptroller in consultation with the SUNY and CUNY
chancellors.

Section 3. Amends paragraph 33 of subsection (c) of section 612 of the
tax law, to authorize payments to be taxed at the time money is
distributed into the fund and not upon withdrawal.

Section 4. Clarifies that nothing in this bill shall be construed to
guarantee acceptance into any New York State College.

Section 5. Sets forth the effective date.

 JUSTIFICATION :

This bill would establish the New York State pre-pay tuition savings
program to allow participants to enroll an eligible child into the
program for the purposes of making payments over time to cover the
cost of college tuition. The cost would be calculated based on the
yearly average system-wide cost at the State University of New York
including tuition, room and board and all applicable fees. An eligible
child may be enrolled at age five or six and 1/3 of the yearly total
cost of education would be deposited into a fund held in the custody
of the State Comptroller in consultation with the SUNY and CUNY
chancellors. Payments would be make over the course of 12 years. If a
participant enrolls a child at age seven or thereafter, yearly
payments shall be determined by the SUNY Chancellor based upon a
formula that considers the child's age the time of enrollment and
evenly divides the yearly average total cost of a four year SUNY
education but ensure that the last payment would be made when the
eligible child graduates from high school.

Payments deposited into the fund would not be eligible for withdrawal
until the child reaches the age of high school graduation. However,
upon that time, a participant may withdrawal the entire amount or have
payments made to SUNY or CUNY if such a child is accepted into a state
school. If the child chooses to go to private school, a participant
may choose to have the funds applied to the cost of education at such
private school.

With costs of higher education increasing and the amount of student
loan debt accumulated during the course of a college education growing
at an alarming rate, this bill would help families afford college by
allowing them to put money aside little by little so that when their
children reach the age of high school graduation, the cost of a
college education at SUNY would be covered. This bill will allow
participants to pay a lower cost over all because at the time payments
are made, presumably, tuition will be lower than it will be when the
child graduates from high school. Additionally, this program will
enable students to graduate college without the crushing debt facing
most young adults upon graduation.

 LEGISLATIVE HISTORY :

2015-16 S.223A; 2013-14 S.4593; 2012 part D of the college
affordability package, S.7449A

 FISCAL IMPLICATIONS :

None. Participants' contributions would cover the cost of the program.

 EFFECTIVE DATE :
This act shall take effect one year after it shall have become law;
provided, however, that effective immediately the New York State
Comptroller or his or her designee, in consultation with the
Chancellor of the State University of New York or his or her designee
and the Chancellor of the City University of New York or his or her
designee, shall promulgate all necessary rules and regulations for the
timely implementation of this at on or before such effective date.

2017-S4132 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4132
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2017
                                ___________
 
 Introduced  by  Sens.  LAVALLE, FUNKE -- 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 the  creation  of  the
   New  York  state  tuition  savings program; to amend the state finance
   law, in relation to establishing the New York  state  pre-pay  tuition
   fund;  and to amend the tax law, in relation to reducing distributions
   from the New York state pre-pay tuition savings program from  adjusted
   gross income
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  The education law is amended by adding a new section 355-d
 to read as follows:
   § 355-D. NEW YORK STATE PRE-PAY  TUITION  SAVINGS  PROGRAM.    1.  FOR
 PURPOSES  OF  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
 MEANINGS:
   A. "PARTICIPANT" SHALL MEAN A NEW YORK STATE RESIDENT WHO  ENROLLS  AN
 ELIGIBLE  CHILD AND MAKES PAYMENTS ON BEHALF OF SUCH ELIGIBLE CHILD, AND
 SHALL INCLUDE BUT NOT BE LIMITED TO  SUCH  ELIGIBLE  CHILD'S  PARENT  OR
 GUARDIAN.
   B. "ELIGIBLE CHILD" SHALL MEAN A CHILD FIVE YEARS OF AGE OR OLDER, WHO
 IS  ENROLLED  IN THE NEW YORK STATE PRE-PAY TUITION PROGRAM BY A PARTIC-
 IPANT.
   C. "THE FUND" SHALL MEAN THE  NEW  YORK  STATE  PRE-PAY  TUITION  FUND
 ESTABLISHED BY SECTION NINETY-NINE-AA OF THE STATE FINANCE LAW.
   D. "TOTAL COST OF EDUCATION" SHALL MEAN THE AVERAGE SYSTEM-WIDE YEARLY
 TOTAL  COST OF A FOUR YEAR EDUCATION AT THE STATE UNIVERSITY OF NEW YORK
 INCLUDING TUITION, ROOM AND BOARD AND ALL APPLICABLE FEES.  DURING  EACH
 YEAR  OF  PARTICIPATION, THE TOTAL COST OF EDUCATION SHALL BE CALCULATED
 BASED UPON THE CURRENT YEAR'S COST UNTIL THE FINAL PAYMENT IS MADE.
   2. THE NEW YORK STATE PRE-PAY TUITION SAVINGS PROGRAM IS HEREBY ESTAB-
 LISHED AND SHALL BE CONTROLLED AND ADMINISTERED BY THE  NEW  YORK  STATE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09650-01-7

 S. 4132                             2
 
 COMPTROLLER  OR  HIS OR HER DESIGNEE IN CONSULTATION WITH THE CHANCELLOR
 OF THE STATE UNIVERSITY OF NEW YORK (SUNY) OR HIS OR  HER  DESIGNEE  AND
 THE  CHANCELLOR  OF THE CITY UNIVERSITY OF NEW YORK (CUNY) OR HIS OR HER
 DESIGNEE.
   3.  A.    A PARTICIPANT MAY ENROLL AN ELIGIBLE CHILD BEGINNING AT FIVE
 YEARS OF AGE AND PAY ONE-THIRD OF THE TOTAL COST OF EDUCATION EACH  YEAR
 FOR THE DURATION OF TWELVE CONSECUTIVE YEARS.
   B.  A  PARTICIPANT MAY ENROLL AN ELIGIBLE CHILD BEGINNING AT SIX YEARS
 OF AGE AND PAY ONE-THIRD OF THE TOTAL COST OF EDUCATION  EACH  YEAR  FOR
 THE DURATION OF TWELVE YEARS.
   C.  IF  A PARTICIPANT ENROLLS AN ELIGIBLE CHILD AT AGE SEVEN OR THERE-
 AFTER, YEARLY PAYMENTS SHALL BE DETERMINED BY THE SUNY CHANCELLOR OR HIS
 OR HER DESIGNEE AND APPROVED BY THE STATE  COMPTROLLER  OR  HIS  OR  HER
 DESIGNEE BASED UPON A FORMULA THAT CONSIDERS THE CHILD'S AGE AT THE TIME
 OF ENROLLMENT AND EVENLY DIVIDES THE YEARLY AVERAGE TOTAL COST OF A FOUR
 YEAR  SUNY  EDUCATION BUT ENSURES THAT THE LAST PAYMENT WILL BE RECEIVED
 WITHIN THE CALENDAR YEAR WHEN THE ELIGIBLE CHILD GRADUATES OR IS  SCHED-
 ULED TO GRADUATE HIGH SCHOOL.
   D.  (1)  UPON  ENROLLMENT  OF  AN ELIGIBLE CHILD INTO THE PROGRAM, THE
 PARTICIPANT SHALL RECEIVE A BILL FROM THE STATE COMPTROLLER  OR  HIS  OR
 HER  DESIGNEE CLEARLY STATING THE TOTAL COST OF EDUCATION FOR THAT YEAR,
 AND THE MONTHLY PAYMENT AMOUNT DUE TO BE DEPOSITED IN THE FUND, PROVIDED
 HOWEVER, THAT AT ANY TIME WITHIN SUCH YEAR, THE TOTAL COST OF  EDUCATION
 FOR THAT YEAR MAY BE PAID IN FULL WITHOUT PENALTY.
   (2)  PROVIDED  FURTHER HOWEVER, THAT A PAYMENT PLAN OTHER THAN MONTHLY
 BILLING MAY BE ESTABLISHED BASED ON RULES  AND  REGULATIONS  PROMULGATED
 PURSUANT TO SUBDIVISION FOUR OF THIS SECTION.
   E.  (1)  PAYMENTS  DEPOSITED  INTO  THE FUND SHALL NOT BE ELIGIBLE FOR
 WITHDRAWAL AT ANY TIME BEFORE THE ELIGIBLE CHILD FOR  WHOM  THE  PARTIC-
 IPANT  IS  PAYING,  REACHES THE AGE OF HIGH SCHOOL GRADUATION OR THE AGE
 WHEN SUCH CHILD SHOULD HAVE GRADUATED.
   (2) UPON THE ELIGIBLE CHILD REACHING THE AGE  OF  HIGH  SCHOOL  GRADU-
 ATION,  THE  PARTICIPANT  MAY  CHOOSE TO WITHDRAW THE TOTAL BALANCE THAT
 SUCH PARTICIPANT PAID INTO THE FUND AND NO  LONGER  PARTICIPATE  IN  THE
 PROGRAM.
   F.  (1) UPON SUBMISSION OF THE LAST PAYMENT, THE ACTUAL COST OF WHAT A
 TWO YEAR PROGRAM AT SUNY, A TWO YEAR PROGRAM AT CUNY  AND  A  FOUR  YEAR
 PROGRAM  AT  CUNY  WOULD  HAVE  COST  IN  EACH  YEAR  THAT A PARTICIPANT
 COMPLETED PAYMENTS FOR THE FIRST YEAR, THE SECOND YEAR, THE  THIRD  YEAR
 AND THE FOURTH YEAR OF THE TOTAL COST OF EDUCATION, SHALL BE CALCULATED.
   (2)  THE  ACTUAL  COST  SHALL  BE CALCULATED IN THE SAME MANNER AS THE
 TOTAL COST OF EDUCATION BY THE COMPTROLLER OR HIS  OR  HER  DESIGNEE  IN
 CONSULTATION  WITH  THE  SUNY  CHANCELLOR OR HIS OR HER DESIGNEE AND THE
 CUNY CHANCELLOR OR HIS OR HER DESIGNEE.
   G. ONCE AN ELIGIBLE CHILD HAS GRADUATED HIGH SCHOOL OR HAS REACHED THE
 AGE OF SUCH CHILD'S SCHEDULED HIGH SCHOOL GRADUATION, AND  IT  HAS  BEEN
 DETERMINED THAT ALL REQUIRED PAYMENTS HAVE BEEN DEPOSITED INTO THE FUND,
 THE PARTICIPANTS HAVE THE FOLLOWING OPTIONS:
   (1)  SUNY.  (I)  IF  A  PARTICIPANT'S  ELIGIBLE  CHILD  APPLIES TO, IS
 ACCEPTED TO, AND ENROLLS IN A FOUR YEAR DEGREE  PROGRAM  AT  SUNY,  THEN
 SUCH  ELIGIBLE CHILD'S FINANCIAL OBLIGATIONS HAVE BEEN MET TO ATTEND FOR
 THE DURATION OF FOUR CONSECUTIVE YEARS IN  SUCH  SUNY  PROGRAM  AND  THE
 COMPTROLLER OR HIS OR HER DESIGNEE SHALL SUBMIT PAYMENTS TO SUCH COLLEGE
 AND  PROVIDE  ANY  REFUNDS  DUE TO THE PARTICIPANT, BASED UPON RULES AND
 REGULATIONS ESTABLISHED PURSUANT TO SUBDIVISION FOUR OF THIS SECTION.

 S. 4132                             3
 
   (II) (A) IF A PARTICIPANT'S ELIGIBLE CHILD APPLIES TO,  GETS  ACCEPTED
 TO,  AND  ENROLLS  IN  A  TWO  YEAR  PROGRAM AT SUNY, THEN SUCH ELIGIBLE
 CHILD'S FINANCIAL OBLIGATIONS HAVE BEEN MET  TO  ATTEND  AND  THE  COMP-
 TROLLER OR HIS OR HER DESIGNEE SHALL SUBMIT PAYMENTS TO SUCH COLLEGE AND
 SHALL PROVIDE A REFUND TO THE PARTICIPANT FOR THE DIFFERENCE BETWEEN THE
 COST  OF  A  TWO  YEAR  PROGRAM AND THE FOUR YEAR PROGRAM FOR WHICH THEY
 PAID, INCLUDING ANY ADDITIONAL REFUNDS DUE TO  THE  PARTICIPANT,  CALCU-
 LATED  UPON  SUBMISSION OF THE PARTICIPANT'S LAST PAYMENT AND BASED UPON
 RULES AND REGULATIONS ESTABLISHED PURSUANT TO SUBDIVISION FOUR  OF  THIS
 SECTION.
   (B)  AT  THAT TIME, SUCH PARTICIPANT SHALL HAVE THE OPTION TO WITHDRAW
 THE REMAINDER OF THE BALANCE THAT SUCH PARTICIPANT PAID INTO  THE  FUND,
 OR  MAY CHOOSE TO KEEP THE REMAINDER IN THE FUND TO BE APPLIED TO A FOUR
 YEAR PROGRAM IN THE EVENT THAT THE ELIGIBLE CHILD TRANSFERS  TO  A  FOUR
 YEAR PROGRAM.
   (C)  IF  SUCH ELIGIBLE CHILD TRANSFERS TO A FOUR YEAR PROGRAM AT CUNY,
 THE PARTICIPANT SHALL RECEIVE A REFUND FOR THE  DIFFERENCE  BETWEEN  THE
 ACTUAL  COST  OF  EDUCATION  AT CUNY AND THE FOUR YEAR PROGRAM FOR WHICH
 THEY PAID, INCLUDING ANY ADDITIONAL  REFUNDS  DUE  TO  THE  PARTICIPANT,
 CALCULATED  AT  THE  TIME  OF  THE  SUBMISSION OF THE PARTICIPANT'S LAST
 PAYMENT.
   (III) IF SUCH ELIGIBLE CHILD TRANSFERS TO A FOUR YEAR PROGRAM AT A NEW
 YORK STATE PRIVATE SCHOOL,  THE  PARTICIPANT  MAY  CHOOSE  TO  HAVE  THE
 REMAINDER  OF  THE  BALANCE  THAT  SUCH  PARTICIPANT PAID INTO THE FUND,
 APPLIED TO THE COST OF EDUCATION AT SUCH PRIVATE SCHOOL.
   (IV) IF SUCH ELIGIBLE CHILD TRANSFERS TO AN OUT-OF-STATE COLLEGE,  THE
 PARTICIPANT SHALL RECEIVE THE REMAINDER OF THE BALANCE THAT SUCH PARTIC-
 IPANT PAID INTO THE FUND.
   (2)  CUNY.  (I)  IF  A  PARTICIPANT'S  ELIGIBLE CHILD APPLIES TO, GETS
 ACCEPTED TO AND ENROLLS IN A FOUR YEAR DEGREE PROGRAM AT CUNY, THEN SUCH
 ELIGIBLE CHILD'S FINANCIAL OBLIGATIONS HAVE BEEN MET TO ATTEND  AND  THE
 COMPTROLLER  OR  HIS  OR  HER  DESIGNEE  SHALL  SUBMIT  PAYMENTS TO SUCH
 COLLEGE, AND SHALL PROVIDE A REFUND TO THE PARTICIPANT FOR  THE  DIFFER-
 ENCE  BETWEEN  THE  ACTUAL  COST OF EDUCATION FOR A FOUR YEAR PROGRAM AT
 CUNY AND THE FOUR YEAR PROGRAM FOR WHICH THEY PAID, INCLUDING ANY  ADDI-
 TIONAL  REFUNDS  DUE  TO  THE PARTICIPANT, CALCULATED AT THE TIME OF THE
 SUBMISSION OF THE PARTICIPANT'S LAST PAYMENT BASED UPON RULES AND  REGU-
 LATIONS ESTABLISHED PURSUANT TO SUBDIVISION FOUR OF THIS SECTION.
   (II)  (A)  IF A PARTICIPANT'S ELIGIBLE CHILD APPLIES TO, GETS ACCEPTED
 TO AND ENROLLS IN A TWO YEAR PROGRAM AT CUNY, THEN SUCH ELIGIBLE CHILD'S
 FINANCIAL OBLIGATIONS HAVE BEEN MET TO ATTEND AND THE COMPTROLLER OR HIS
 OR HER DESIGNEE SHALL SUBMIT PAYMENTS TO SUCH COLLEGE AND SHALL  PROVIDE
 A REFUND TO THE PARTICIPANT FOR THE DIFFERENCE BETWEEN THE COST OF A TWO
 YEAR  PROGRAM  AND  THE FOUR YEAR PROGRAM FOR WHICH THEY PAID, INCLUDING
 ANY  ADDITIONAL  REFUNDS  DUE  TO  THE  PARTICIPANT,   CALCULATED   UPON
 SUBMISSION  OF  THE  PARTICIPANT'S LAST PAYMENT AND BASED UPON RULES AND
 REGULATIONS ESTABLISHED PURSUANT TO SUBDIVISION FOUR OF THIS SECTION.
   (B) AT THAT TIME, SUCH PARTICIPANT SHALL HAVE THE OPTION  TO  WITHDRAW
 THE  REMAINDER  OF THE BALANCE THAT SUCH PARTICIPANT PAID INTO THE FUND,
 OR MAY CHOOSE TO KEEP THE REMAINDER IN THE FUND TO BE APPLIED TO A  FOUR
 YEAR  PROGRAM  IN  THE EVENT THAT THE ELIGIBLE CHILD TRANSFERS TO A FOUR
 YEAR PROGRAM.
   (C) IF SUCH ELIGIBLE CHILD TRANSFERS TO A FOUR YEAR PROGRAM  AT  CUNY,
 THE  PARTICIPANT  SHALL  RECEIVE A REFUND FOR THE DIFFERENCE BETWEEN THE
 ACTUAL COST OF EDUCATION AT CUNY AND THE FOUR  YEAR  PROGRAM  FOR  WHICH
 THEY  PAID,  INCLUDING  ANY  ADDITIONAL  REFUNDS DUE TO THE PARTICIPANT,

 S. 4132                             4
 
 CALCULATED AT THE TIME OF  THE  SUBMISSION  OF  THE  PARTICIPANT'S  LAST
 PAYMENT.
   (D)  IF  SUCH ELIGIBLE CHILD TRANSFERS TO A FOUR YEAR PROGRAM AT SUNY,
 THEN SUCH ELIGIBLE CHILD'S FINANCIAL OBLIGATIONS HAVE BEEN MET TO ATTEND
 AND THE COMPTROLLER OR HIS OR HER DESIGNEE SHALL SUBMIT PAYMENTS TO SUCH
 COLLEGE, AND PROVIDE ANY REFUNDS DUE  TO  THE  PARTICIPANT,  BASED  UPON
 RULES  AND  REGULATIONS ESTABLISHED PURSUANT TO SUBDIVISION FOUR OF THIS
 SECTION.
   (III) IF AN ELIGIBLE STUDENT TRANSFERS TO A  NEW  YORK  STATE  PRIVATE
 SCHOOL,  THE PARTICIPANT MAY CHOOSE TO HAVE THE REMAINDER OF THE BALANCE
 THAT SUCH PARTICIPANT PAID INTO THE FUND, APPLIED TO THE COST OF  EDUCA-
 TION AT SUCH PRIVATE SCHOOL.
   (IV)  IF SUCH ELIGIBLE CHILD TRANSFERS TO AN OUT-OF-STATE COLLEGE, THE
 PARTICIPANT SHALL RECEIVE THE REMAINDER OF THE BALANCE THAT SUCH PARTIC-
 IPANT PAID INTO THE FUND.
   (3) NEW YORK STATE PRIVATE SCHOOL. IF A PARTICIPANT'S  ELIGIBLE  CHILD
 APPLIES  TO,  GETS ACCEPTED TO AND ENROLLS IN A FOUR YEAR DEGREE PROGRAM
 OR A TWO YEAR DEGREE PROGRAM AT A  NEW  YORK  STATE  PRIVATE  SCHOOL,  A
 PARTICIPANT  MAY  CHOOSE  TO HAVE THE BALANCE THAT SUCH PARTICIPANT PAID
 INTO THE FUND APPLIED TO THE COST OF EDUCATION AT SUCH PRIVATE SCHOOL OR
 SUCH PARTICIPANT MAY CHOOSE TO WITHDRAW THE TOTAL CONTRIBUTION THAT SUCH
 PARTICIPANT PAID INTO THE FUND BASED UPON RULES AND REGULATIONS  PROMUL-
 GATED PURSUANT TO SUBDIVISION FOUR OF THIS SECTION.
   (4)  OUT-OF-STATE  SCHOOL  OR  NON-ACCEPTANCE  INTO  A  NEW YORK STATE
 COLLEGE, OR IF AN ELIGIBLE CHILD DOES NOT APPLY TO COLLEGE. IF A PARTIC-
 IPANT'S ELIGIBLE CHILD APPLIES TO, GETS ACCEPTED TO AND  ENROLLS  IN  AN
 OUT-OF-STATE  SCHOOL  OR  IF A PARTICIPANT'S ELIGIBLE CHILD DOES NOT GET
 ACCEPTED INTO A NEW  YORK  STATE  COLLEGE,  OR  CHOOSES  NOT  TO  ATTEND
 COLLEGE,  THEN  SUCH  PARTICIPANT  SHALL WITHDRAW THE TOTAL CONTRIBUTION
 THAT SUCH PARTICIPANT PAID INTO THE FUND  BASED  UPON  RULES  AND  REGU-
 LATIONS PROMULGATED PURSUANT TO SUBDIVISION FOUR OF THIS SECTION.
   (5)  NON-PAYMENT.  (I)  IF  A  PARTICIPANT  CANNOT  MAKE  THE REQUIRED
 PAYMENTS AT ANY TIME AFTER ENROLLMENT OF AN ELIGIBLE  CHILD,  THEN  SUCH
 PARTICIPANT MAY WITHDRAW THE BALANCE THAT SUCH PARTICIPANT HAS PAID INTO
 THE  FUND  AT SUCH TIME THAT THE ELIGIBLE CHILD GRADUATES HIGH SCHOOL OR
 REACHES THE AGE OF SCHEDULED GRADUATION.
   (II) IF SUCH PARTICIPANT CANNOT MAKE PAYMENT BUT  WISHES  TO  CONTINUE
 PAYING INTO THE PROGRAM, SUCH PARTICIPANT MAY RESUME PAYMENTS CALCULATED
 UNDER A NEW SCHEDULE BASED UPON THE ELIGIBLE CHILD'S CURRENT AGE AND THE
 CURRENT TOTAL COST OF EDUCATION.
   (6)  DEATH OF ELIGIBLE CHILD. IN THE EVENT OF THE DEATH OF AN ENROLLED
 ELIGIBLE CHILD, THE PARTICIPANT MAY WITHDRAW THE TOTAL BALANCE THAT SUCH
 PARTICIPANT PAID INTO THE FUND OR MAY ELECT TO HAVE A SCHOLARSHIP IN THE
 AMOUNT OF SUCH TOTAL BALANCE AWARDED TO ANOTHER STUDENT IN THE  NAME  OF
 SUCH DECEASED ELIGIBLE CHILD, UPON SUBMISSION OF A DEATH CERTIFICATE AND
 BASED  UPON  RULES  AND  REGULATIONS PROMULGATED PURSUANT TO SUBDIVISION
 FOUR OF THIS SECTION.
   4. THE COMPTROLLER OR HIS OR HER DESIGNEE, IN  CONSULTATION  WITH  THE
 SUNY CHANCELLOR OR HIS OR HER DESIGNEE AND THE CUNY CHANCELLOR OR HIS OR
 HER  DESIGNEE,  SHALL PROMULGATE ALL NECESSARY RULES AND REGULATIONS FOR
 THE SUCCESSFUL IMPLEMENTATION OF THIS SECTION.   SUCH  RULES  AND  REGU-
 LATIONS  SHALL  INCLUDE PROVISIONS TO ADDRESS AN ELIGIBLE CHILD'S ELIGI-
 BILITY FOR TUITION ASSISTANCE PROGRAM AWARDS OR ANY OTHER  SCHOLARSHIPS,
 GRANTS  OR  AWARDS, TO ENSURE THAT THE VALUE OF SUCH AWARDS ARE REFUNDED
 TO THAT PARTICIPANT OR ELIGIBLE CHILD.

 S. 4132                             5

   § 2. The state finance law is amended by adding a new section 99-aa to
 read as follows:
   §  99-AA.  NEW  YORK  STATE PRE-PAY TUITION FUND.   1. THERE IS HEREBY
 ESTABLISHED WITHIN THE CUSTODY OF THE STATE COMPTROLLER, OR HIS  OR  HER
 DESIGNEE,  IN CONSULTATION WITH THE SUNY CHANCELLOR OR HIS OR HER DESIG-
 NEE AND THE CUNY CHANCELLOR OR HIS OR HER DESIGNEE, A  NEW  FUND  TO  BE
 KNOWN AS THE NEW YORK STATE PRE-PAY TUITION FUND.
   2.  ALL MONIES RECEIVED PURSUANT TO THE NEW YORK STATE PRE-PAY TUITION
 PROGRAM SHALL BE DEPOSITED INTO THIS FUND AND SHALL BE MANAGED  PURSUANT
 TO SECTION THREE HUNDRED FIFTY-FIVE-D OF THE EDUCATION LAW.
   3.  ALL  NECESSARY  RULES  AND REGULATIONS FOR THE SUCCESSFUL ADMINIS-
 TRATION, INVESTMENT AND MANAGEMENT OF SUCH FUND SHALL BE PROMULGATED  BY
 THE  STATE  COMPTROLLER  OR HIS OR HER DESIGNEE IN CONSULTATION WITH THE
 SUNY CHANCELLOR OR HIS OR HER DESIGNEE OR THE CUNY CHANCELLOR OR HIS  OR
 HER DESIGNEE.
   § 3.  Paragraph 33 of subsection (c) of section 612 of the tax law, as
 added by chapter 546 of the laws of 1997, is amended to read as follows:
   (33) Distributions from a family tuition account established under the
 New York state college choice tuition savings program provided for under
 article  fourteen-A  of  the education law OR DISTRIBUTIONS FROM THE NEW
 YORK STATE PRE-PAY TUITION SAVINGS PROGRAM PROVIDED  FOR  UNDER  SECTION
 THREE  HUNDRED FIFTY-FIVE-D OF THE EDUCATION LAW, to the extent includi-
 ble in gross income for federal income tax purposes.
   § 4. Nothing in this act shall be construed  to  guarantee  acceptance
 into any New York state college.
   §  5. This act shall take effect one year after it shall have become a
 law; provided, however, that effective immediately, the New  York  state
 comptroller  or his or her designee, in consultation with the chancellor
 of the state university of New York or his or her designee and the chan-
 cellor of the city university of New York or his or her designee,  shall
 promulgate  all necessary rules and regulations for the timely implemen-
 tation of this act on or before such effective date.

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Senate Bill S4132

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Sponsored By

Kenneth P. LaValle