Bill Text: NY S07783 | 2017-2018 | General Assembly | Introduced

New York Senate Bill 7783 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Expands and renames the New York state college choice tuition savings program to include costs of nonpublic elementary and secondary education.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Engrossed - Dead) 2018-05-07 - referred to education [S07783 Detail]

Download: New_York-2017-S07783-Introduced.html

                STATE OF NEW YORK
        ________________________________________________________________________
                                          7783
                    IN SENATE
                                    February 23, 2018
                                       ___________
        Introduced  by  Sens.  GOLDEN, O'MARA -- read twice and ordered printed,
          and when printed to be committed to the Committee on Higher Education
        AN ACT to amend the education law  and  the  tax  law,  in  relation  to
          expanding the New York state college choice tuition savings program to
          include costs of elementary and secondary education
          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                                ARTICLE 14-A
     5                               NEW YORK STATE
     6             [COLLEGE] EDUCATION CHOICE TUITION SAVINGS PROGRAM
     7    § 2. Section 695 of the education law, as added by chapter 546 of  the
     8  laws of 1997, is amended to read as follows:
     9    §  695. Program established. There is hereby established the [college]
    10  education choice tuition savings program and such program shall be known
    11  and may be cited as the  "New  York  state  [college]  education  choice
    12  tuition savings program".
    13    §  3.  Subdivision 5 of section 695-b of the education law, as amended
    14  by chapter 535 of the laws of 2000, is amended to read as follows:
    15    5. "Eligible educational institution" shall mean  any  institution  of
    16  higher  education  defined  as  an  eligible  educational institution in
    17  section 529(e)(5) of the Internal Revenue Code of 1986, as amended,  and
    18  any  elementary  or  secondary  school  for  which  tuition expenses are
    19  included within the definition of the term  qualified  higher  education
    20  expenses  in  section 529(e)(3) of the Internal Revenue Code of 1986, as
    21  amended.
    22    § 4. Subdivision 10 of section 695-e of the education law, as  amended
    23  by chapter 593 of the laws of 2003, is amended to read as follows:
    24    10.  The  comptroller shall promulgate rules or regulations to prevent
    25  contributions on behalf of a designated  beneficiary  in  excess  of  an
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14736-02-8

        S. 7783                             2
     1  amount  that  would cause the aggregate account balance for all accounts
     2  for a designated beneficiary to exceed a  maximum  account  balance,  as
     3  established  from time to time by the comptroller and the corporation on
     4  the  basis  of  nonpublic elementary and secondary tuition costs and the
     5  higher education costs in the state, with adequate safeguards to prevent
     6  more contributions than necessary to provide for  the  qualified  higher
     7  education  costs of the beneficiary, as required to maintain the program
     8  as a "qualified tuition program"  under  section  529  of  the  Internal
     9  Revenue Code of 1986, as amended.
    10    §  5.  Section  695-e  of the education law is amended by adding a new
    11  subdivision 17 to read as follows:
    12    17. Nothing in this  article  or  in  any  tuition  savings  agreement
    13  entered  into pursuant to this article shall be construed as a guarantee
    14  by the state or any elementary or secondary school  that  a  beneficiary
    15  will  be admitted to any elementary or secondary school, or, upon admis-
    16  sion to an elementary or secondary school will be permitted to  continue
    17  to attend such elementary or secondary school.
    18    §  6. Paragraphs 32 and 33 of subsection (c) of section 612 of the tax
    19  law, paragraph 32 as amended by chapter 81 of the laws  of  2008,  para-
    20  graph  33  as  added  by chapter 546 of the laws of 1997, are amended to
    21  read as follows:
    22    (32) Contributions made during the taxable year by an account owner to
    23  one or more family tuition accounts established under the New York state
    24  [college] education choice tuition savings program  provided  for  under
    25  article fourteen-A of the education law, to the extent not deductible or
    26  eligible  for credit for federal income tax purposes, provided, however,
    27  the exclusion provided for in this paragraph shall not exceed five thou-
    28  sand dollars for an individual or head of  household,  and  for  married
    29  couples  who  file  joint  tax  returns,  shall  not exceed ten thousand
    30  dollars; provided, further, that such exclusion shall be available  only
    31  to the account owner and not to any other person.
    32    (33) Distributions from a family tuition account established under the
    33  New  York  state  [college]  education  choice  tuition  savings program
    34  provided for under article fourteen-A  of  the  education  law,  to  the
    35  extent includible in gross income for federal income tax purposes.
    36    §  7.  This  act  shall  take  effect  immediately  and shall apply to
    37  contributions and distributions made on and after January 1, 2018.