Bill Text: NY A02427 | 2023-2024 | General Assembly | Introduced

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Bill Title: Amends the New York state college choice tuition savings program to have the program also apply to elementary and secondary schools.

Spectrum: Moderate Partisan Bill (Republican 4-1)

Status: (Introduced) 2024-01-03 - referred to education [A02427 Detail]

Download: New_York-2023-A02427-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2427

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 26, 2023
                                       ___________

        Introduced  by  M.  of  A. J. A. GIGLIO -- read once and referred to the
          Committee on Education

        AN ACT to amend the education law, the tax law, the  state  finance  law
          and the civil practice law and rules, in relation to requiring the New
          York  state  college  choice  tuition savings program to also apply to
          elementary and secondary schools

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  The article heading of article 14-A of the education law,
     2  as added by chapter 546 of the laws of  1997,  is  amended  to  read  as
     3  follows:
     4                                NEW YORK STATE
     5                  [COLLEGE CHOICE] TUITION SAVINGS PROGRAM
     6    §  2. Section 695 of the education law, as added by chapter 546 of the
     7  laws of 1997, is amended to read as follows:
     8    § 695. Program established. There is hereby established  the  [college
     9  choice]  tuition savings program and such program shall be known and may
    10  be cited as  the  "New  York  state  [college  choice]  tuition  savings
    11  program".
    12    §  3. Subdivision 2 of section 695-a of the education law, as added by
    13  chapter 546 of the laws of 1997, is amended to read as follows:
    14    2. Attract students to public and  private  elementary  and  secondary
    15  schools, and colleges and universities within the state.
    16    §  4. Subdivision 7 of section 695-b of the education law, as added by
    17  chapter 546 of the laws of 1997, is amended to read as follows:
    18    7. "Program" shall mean the New York state  [college  choice]  tuition
    19  savings program established pursuant to this article.
    20    §  5.  Paragraph  c of subdivision 2 of section 695-d of the education
    21  law, as added by chapter 546 of the laws of 1997, is amended to read  as
    22  follows:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07136-01-3
        A. 2427                             2

     1    c.  The ability of the investment instrument to track increasing costs
     2  of [higher] education;
     3    §  6. Paragraphs 32 and 33 of subsection (c) of section 612 of the tax
     4  law, paragraph 32 as amended by chapter 81 of the laws of 2008 and para-
     5  graph 33 as added by chapter 546 of the laws of  1997,  are  amended  to
     6  read as follows:
     7    (32) Contributions made during the taxable year by an account owner to
     8  one or more family tuition accounts established under the New York state
     9  [college  choice]  tuition  savings  program  provided for under article
    10  fourteen-A of the education law, to the extent not deductible or  eligi-
    11  ble  for  credit for federal income tax purposes, provided, however, the
    12  exclusion provided for in this paragraph shall not exceed five  thousand
    13  dollars  for an individual or head of household, and for married couples
    14  who file joint tax returns,  shall  not  exceed  ten  thousand  dollars;
    15  provided,  further,  that  such exclusion shall be available only to the
    16  account owner and not to any other person.
    17    (33) Distributions from a family tuition account established under the
    18  New York state [college choice] tuition  savings  program  provided  for
    19  under  article fourteen-A of the education law, to the extent includible
    20  in gross income for federal income tax purposes.
    21    § 7. Paragraph 3 of subsection (d) of section 658 of the tax  law,  as
    22  added by chapter 546 of the laws of 1997, is amended to read as follows:
    23    (3)  The  commissioner  may  by  regulation or instruction require the
    24  filing of a report annually by the comptroller or program manager of the
    25  New York state [college choice] tuition savings program, or their desig-
    26  nee, setting forth the  names  and  identification  numbers  of  account
    27  owners,  designated  beneficiaries  and  distributees  of family tuition
    28  accounts, the amounts contributed to such accounts, the amounts distrib-
    29  uted from such accounts and the nature of such distributions  as  quali-
    30  fied withdrawals or as withdrawals other than qualified withdrawals, and
    31  any such other information as the commissioner may require regarding the
    32  taxation  under this article of amounts contributed to or withdrawn from
    33  such accounts. The commissioner may require that any such report also be
    34  made to the account owner, designated beneficiary or distributee of  any
    35  such account.
    36    § 8. The section heading and subdivisions 1 and 2 of section 78 of the
    37  state  finance  law,  as  added  by chapter 546 of the laws of 1997, are
    38  amended to read as follows:
    39    New York state [college choice] tuition savings  program  trust  fund.
    40  1.  There  is  hereby established in the sole custody of the state comp-
    41  troller a special fund to be  known  as  the  New  York  state  [college
    42  choice]  tuition savings program trust fund. All payments from such fund
    43  shall be made in accordance with article fourteen-A of the education law
    44  and the memorandum of understanding entered into pursuant thereto on the
    45  audit of the state comptroller.
    46    2. The fund shall be a trust fund and shall consist of a trust account
    47  and an operating  account.  The  trust  account  shall  include  amounts
    48  received  by the New York state [college choice] tuition savings program
    49  pursuant to tuition savings agreements,  administrative  charges,  fees,
    50  and  all  other  amounts received by the program from other sources, and
    51  interest and investment income earned by the trust fund. The comptroller
    52  shall, from time to time, make transfers from the trust account  to  the
    53  operating account for the immediate payment of obligations under tuition
    54  savings  agreements,  operating expenses and administrative costs of the
    55  New York state [college choice] tuition savings program.  Administrative
    56  costs  shall be paid out of the operating account according to the terms
        A. 2427                             3

     1  and conditions established pursuant to the  provisions  of  section  six
     2  hundred ninety-five-c of the education law.
     3    §  9.  The opening paragraph of subdivision (j) of section 5205 of the
     4  civil practice law and rules, as added by chapter 546  of  the  laws  of
     5  1997, is amended to read as follows:
     6    Exemption  for New York state [college choice] tuition savings program
     7  trust fund payment monies. Monies in  an  account  created  pursuant  to
     8  article  fourteen-A  of the education law are exempt from application to
     9  the satisfaction of a money judgment as follows:
    10    § 10. This act shall take effect immediately and shall apply to  taxa-
    11  ble years beginning on or after January 1, 2023.