Bill Text: NY A00408 | 2013-2014 | General Assembly | Introduced
Bill Title: Enacts the "New York state family tuition investment program act" to provide for the advance purchase of tuition to colleges in the state.
Spectrum: Partisan Bill (Democrat 32-0)
Status: (Introduced - Dead) 2014-01-08 - referred to higher education [A00408 Detail]
Download: New_York-2013-A00408-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
408
2013-2014 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 9, 2013
___________
Introduced by M. of A. MAGNARELLI, MILLMAN, PAULIN -- Multi-Sponsored by
-- M. of A. HEASTIE, MAGEE -- read once and referred to the Committee
on Higher Education
AN ACT to amend the education law and the state finance law, in relation
to establishing the New York state family tuition investment program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Legislative findings. The legislature hereby finds and
2 declares that it is an essential function of state government to foster
3 higher education in order to provide for a well-educated and financially
4 secure population. The legislature further finds that the cost of higher
5 education is becoming less affordable and predictable, adversely affect-
6 ing the ability of individuals and families to plan for future educa-
7 tional expenses. The legislature further finds that it is in the best
8 interests of the state to provide its citizens with financing assistance
9 for higher education and protection against rising costs, and to encour-
10 age savings to enhance the ability of residents of New York to obtain
11 financial access to institutions of higher education. Accordingly, the
12 legislature finds and declares that the creation of the New York state
13 family tuition investment program for the advance purchase of tuition
14 will help to make higher education affordable and accessible to all New
15 York's students, to the ultimate benefit of all citizens of the state.
16 S 2. The education law is amended by adding a new article 14-B to read
17 as follows:
18 ARTICLE 14-B
19 NEW YORK STATE FAMILY TUITION
20 INVESTMENT PROGRAM ACT
21 SECTION 696. SHORT TITLE.
22 696-A. DEFINITIONS.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01512-01-3
A. 408 2
1 696-B. NEW YORK STATE FAMILY TUITION INVESTMENT PROGRAM;
2 PURPOSE.
3 696-C. POWERS AND DUTIES OF THE HIGHER EDUCATION SERVICES CORPO-
4 RATION.
5 696-D. PREPAYMENT AGREEMENTS; PRICING; REDEMPTION.
6 696-E. DISCLOSURE TO PURCHASERS.
7 696-F. TERMINATION OF PREPAYMENT AGREEMENTS; REFUNDS.
8 696-G. STATE FINANCIAL AID.
9 696-H. SCHOLARSHIP PROGRAM.
10 696-I. ANNUAL ACCOUNTING AND ACTUARIAL STUDY.
11 696-J. EXEMPTION FROM SECURITY LAWS.
12 696-K. RELIEF FROM ATTACHMENT.
13 S 696. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
14 THE "NEW YORK STATE FAMILY TUITION INVESTMENT PROGRAM ACT".
15 S 696-A. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
16 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
17 1. "BENEFICIARY" MEANS AN INDIVIDUAL DESIGNATED IN A PREPAYMENT AGREE-
18 MENT AS THE INDIVIDUAL ENTITLED TO APPLY TUITION UNITS PURCHASED UNDER
19 SUCH AGREEMENT TO THE PAYMENT OF THAT INDIVIDUAL'S TUITION.
20 2. "COMPTROLLER" MEANS THE STATE COMPTROLLER.
21 3. "CORPORATION" MEANS THE NEW YORK STATE HIGHER EDUCATION SERVICES
22 CORPORATION.
23 4. "OWNER" MEANS THE PURCHASER OR BENEFICIARY OF A PREPAYMENT AGREE-
24 MENT DESIGNATED BY THE PURCHASER PURSUANT TO PARAGRAPH A OF SUBDIVISION
25 ONE OF SECTION SIX HUNDRED NINETY-SIX-D OF THIS ARTICLE.
26 5. "PREPAYMENT AGREEMENT" MEANS AN AGREEMENT ENTERED INTO BY THE
27 CORPORATION AND A PURCHASER PROVIDING FOR THE PREPAYMENT OF TUITION
28 UNITS BY THE PURCHASER, AT A PRICE DETERMINED BY THE CORPORATION FOR THE
29 YEAR IN WHICH THE UNITS ARE PURCHASED, AND THE REDEMPTION OF SUCH UNITS
30 AT THE TIME OF THE BENEFICIARY'S COLLEGE MATRICULATION, AT A VALUE
31 DETERMINED IN ACCORDANCE WITH SECTION SIX HUNDRED NINETY-SIX-D OF THIS
32 ARTICLE.
33 6. "PROGRAM" MEANS THE NEW YORK STATE FAMILY TUITION INVESTMENT
34 PROGRAM ESTABLISHED BY SECTION SIX HUNDRED NINETY-SIX-B OF THIS ARTICLE.
35 7. "PURCHASER" MEANS A PERSON, INCLUDING A NATURAL PERSON, LIMITED
36 LIABILITY COMPANY, CORPORATION, ASSOCIATION, FOUNDATION, PARTNERSHIP OR
37 OTHER LEGAL ENTITY, WHO ENTERS INTO A PREPAYMENT AGREEMENT WITH THE
38 CORPORATION FOR THE PREPAYMENT OF TUITION.
39 8. "TRUST FUND" MEANS THE NEW YORK STATE FAMILY TUITION INVESTMENT
40 PROGRAM TRUST FUND ESTABLISHED PURSUANT TO SECTION SEVENTY-EIGHT-C OF
41 THE STATE FINANCE LAW.
42 9. "TUITION" MEANS THE CHARGES IMPOSED BY COLLEGES FOR ATTENDANCE FOR
43 AN ACADEMIC YEAR AS AN UNDERGRADUATE AND ALL FEES REQUIRED AS A CONDI-
44 TION OF ENROLLMENT AS DETERMINED BY THE CORPORATION. SUCH TERM SHALL NOT
45 INCLUDE TUITION CHARGED TO OUT-OF-STATE RESIDENTS, LABORATORY FEES, ROOM
46 AND BOARD, OR OTHER SIMILAR FEES AND CHARGES.
47 10. "UNIT" OR "TUITION UNIT" MEANS ONE PERCENT OF THE ANNUAL WEIGHTED
48 AVERAGE TUITION FOR A GROUP OF COLLEGES, AS DESCRIBED IN AND DETERMINED
49 PURSUANT TO SECTION SIX HUNDRED NINETY-SIX-D OF THIS ARTICLE.
50 S 696-B. NEW YORK STATE FAMILY TUITION INVESTMENT PROGRAM; PURPOSE.
51 THERE IS HEREBY ESTABLISHED WITHIN THE CORPORATION THE NEW YORK STATE
52 FAMILY TUITION INVESTMENT PROGRAM FOR THE PURPOSE OF IMPROVING THE HIGH-
53 ER EDUCATIONAL OPPORTUNITIES OF BENEFICIARIES THROUGH THE ADVANCE
54 PURCHASE OF TUITION AT PUBLIC INSTITUTIONS OF HIGHER EDUCATION IN THIS
55 STATE, WHICH SHALL BE AN OFFICIAL STATE FUNCTION.
A. 408 3
1 S 696-C. POWERS AND DUTIES OF THE HIGHER EDUCATION SERVICES CORPO-
2 RATION. 1. THE CORPORATION SHALL:
3 A. PROMULGATE NECESSARY RULES AND REGULATIONS, WITHIN NINETY DAYS
4 AFTER THE EFFECTIVE DATE OF THIS ARTICLE, FOR THE IMPLEMENTATION OF THE
5 PROGRAM, INCLUDING BUT NOT LIMITED TO REASONABLE TIME LIMITS FOR USE OF
6 TUITION UNITS, REASONABLE LIMITS ON THE NUMBER OF PROGRAM PARTICIPANTS,
7 REASONABLE RESTRICTIONS ON THE SUBSTITUTION OF BENEFICIARIES, RESIDENCY
8 REQUIREMENTS FOR BENEFICIARIES WHICH SHALL BE CONSISTENT WITH RESIDENCY
9 REQUIREMENTS ESTABLISHED BY QUALIFIED INSTITUTIONS, AND REASONABLE
10 ADMINISTRATIVE FEES AND CHARGES IN CONNECTION WITH ANY TRANSACTION UNDER
11 THIS ARTICLE;
12 B. EMPLOY AND FIX THE COMPENSATIONS OF PERSONNEL, WHO SHALL BE IN THE
13 CLASSIFIED SERVICE, BUT SHALL NOT BE IN THE COMPETITIVE CLASS, AS NECES-
14 SARY TO CARRY OUT ITS RESPONSIBILITIES UNDER THIS ARTICLE;
15 C. ENGAGE, ON A CONTRACT BASIS, THE SERVICES OF FINANCIAL CONSULTANTS,
16 ACTUARIES, AUDITORS AND OTHER CONSULTANTS AS NECESSARY TO CARRY OUT ITS
17 RESPONSIBILITIES UNDER THIS ARTICLE;
18 D. CONTRACT FOR OTHER SERVICES, OR FOR GOODS, NEEDED BY THE CORPO-
19 RATION IN THE CONDUCT OF ITS BUSINESS;
20 E. MAKE, EXECUTE AND DELIVER CONTRACTS, CONVEYANCES AND OTHER INSTRU-
21 MENTS NECESSARY TO THE MANAGEMENT AND OPERATION OF THE PROGRAM;
22 F. PURCHASE INSURANCE FROM INSURERS LICENSED TO DO BUSINESS IN THIS
23 STATE PROVIDING COVERAGE AGAINST ANY LOSS IN CONNECTION WITH THE CORPO-
24 RATION'S PROPERTY, ASSETS OR ACTIVITIES, OR TO FURTHER ENSURE THE VALUE
25 OF UNITS;
26 G. PROMOTE, ADVERTISE AND PUBLICIZE THE PROGRAM THROUGH, AT A MINIMUM,
27 WIDE DISSEMINATION OF INFORMATIONAL MATERIALS TO THE PUBLIC EXPLAINING
28 THE PROVISIONS OF THE PROGRAM AND SPECIFICALLY, A CLEAR STATEMENT IN
29 PLAIN LANGUAGE SUMMARIZING THE PROVISIONS OF SECTIONS SIX HUNDRED NINE-
30 TY-SIX-E AND SIX HUNDRED NINETY-SIX-F OF THIS ARTICLE, REGARDING DISCLO-
31 SURE AND TERMINATION;
32 H. ENTER INTO AGREEMENTS WITH ANY AGENCY OF THE STATE, THE COMP-
33 TROLLER, POLITICAL SUBDIVISIONS OF THE STATE AND WITH PRIVATE EMPLOYERS
34 UNDER WHICH AN EMPLOYEE MAY AGREE TO HAVE A DESIGNATED AMOUNT DEDUCTED
35 IN EACH PAYROLL PERIOD FROM THE WAGES OR SALARY DUE SUCH EMPLOYEE FOR
36 THE PURPOSE OF PURCHASING TUITION UNITS PURSUANT TO A PREPAYMENT AGREE-
37 MENT;
38 I. ENTER INTO AN AGREEMENT WITH THE COMPTROLLER UNDER WHICH THE COMP-
39 TROLLER WILL RECEIVE AND CREDIT TO THE TRUST FUND, FROM ANY BANKING
40 INSTITUTION AUTHORIZED TO DO BUSINESS IN THIS STATE, AMOUNTS THAT A
41 DEPOSITOR OF THE BANKING INSTITUTION AUTHORIZES SUCH INSTITUTION TO
42 WITHDRAW PERIODICALLY FROM HIS OR HER ACCOUNT FOR THE PURPOSE OF
43 PURCHASING UNITS PURSUANT TO A PREPAYMENT AGREEMENT;
44 J. SOLICIT AND ACCEPT GIFTS, GRANTS OR LOANS FROM ANY PERSON, ASSOCI-
45 ATION, BOARD, FOUNDATION OR GOVERNMENTAL AGENCY; AND
46 K. PERFORM ALL ACTS NECESSARY AND PROPER TO CARRY OUT THE DUTIES AND
47 RESPONSIBILITIES OF THE CORPORATION PURSUANT TO THIS ARTICLE.
48 2. THE COMPTROLLER SHALL ACT AS THE SOLE TRUSTEE OF THE TRUST FUND.
49 THE COMPTROLLER WILL HAVE AUTHORITY TO MAKE ALL INVESTMENT DECISIONS
50 REGARDING THE TRUST FUND.
51 3. THE CORPORATION SHALL SUBMIT A REQUEST TO THE DIVISION OF THE BUDG-
52 ET FOR FUNDS SUFFICIENT, AS DETERMINED BY SUCH CORPORATION, TO COVER THE
53 EXPENSES OF INITIAL PLANNING, ORGANIZATION AND ADMINISTRATION OF THE
54 PROGRAM. ANY APPROPRIATIONS TO THE CORPORATION SHALL BE REPAID TO THE
55 STATE FROM THE FEES, CHARGES AND INVESTMENT EARNINGS OF THE TRUST FUND
56 WITHIN A FIVE-YEAR PERIOD, COMMENCING TWO YEARS AFTER UNITS HAVE BEEN
A. 408 4
1 OFFERED FOR SALE TO THE PUBLIC. COMMENCING ONE YEAR AFTER UNITS HAVE
2 BEEN OFFERED FOR SALE TO THE PUBLIC, EXPENSES INCURRED BY THE CORPO-
3 RATION SHALL BE PAID FROM THE FEES, CHARGES AND INVESTMENT EARNINGS OF
4 THE FUND OR ANY OTHER AVAILABLE FUNDS.
5 4. THE PROGRAM IS BACKED BY THE FULL FAITH AND CREDIT OF THE STATE.
6 THE STATE PLEDGES TO BENEFACTORS AND DESIGNATED BENEFICIARIES OF THE
7 PROGRAM THAT THE STATE WILL NOT LIMIT OR ALTER THE RIGHTS WHICH ARE
8 VESTED IN THE PROGRAM UNTIL SUCH OBLIGATIONS ARE MET AND DISCHARGED.
9 HOWEVER, THIS SUBDIVISION SHALL NOT BE DEEMED TO PRECLUDE SUCH LIMITA-
10 TION IF ADEQUATE PROVISION IS MADE BY LAW FOR THE PROTECTION OF THE
11 BENEFACTORS AND DESIGNATED BENEFICIARIES PURSUANT TO THE OBLIGATIONS OF
12 THE CORPORATION.
13 S 696-D. PREPAYMENT AGREEMENTS; PRICING; REDEMPTION. 1. ELECTION OF
14 OPTIONS. THE CORPORATION MAY ENTER INTO PREPAYMENT AGREEMENTS WITH ANY
15 PERSON OR ENTITY FOR THE PURCHASE OF ANY NUMBER OF TUITION UNITS. A
16 PURCHASER SHALL ELECT ONE OF THE FOLLOWING OPTIONS AT THE TIME OF ENTER-
17 ING INTO A PREPAYMENT AGREEMENT UNDER THIS SECTION:
18 A. ONE OR MORE SPECIFIC INDIVIDUALS SHALL BE DESIGNATED AS THE BENEFI-
19 CIARIES OF THE UNITS. A PURCHASER SELECTING THIS OPTION SHALL ALSO ELECT
20 WHETHER TO RETAIN OWNERSHIP OF THE UNITS OR TO ALLOCATE OWNERSHIP OF THE
21 UNITS IN THE ACCOUNT TO ONE OR MORE OF THE DESIGNATED BENEFICIARIES. A
22 PURCHASER WHO RETAINS OWNERSHIP MAY ALLOCATE UNITS AMONG THE SPECIFIED
23 BENEFICIARIES AT THE TIME OF ENROLLMENT IN A COLLEGE. IF THE PURCHASER
24 ASSIGNS OWNERSHIP OF THE UNITS TO THE BENEFICIARIES, EACH BENEFICIARY IS
25 ENTITLED TO USE THOSE UNITS. IN ACCORDANCE WITH RULES OF THE CORPO-
26 RATION, BENEFICIARIES MAY BE DELETED, ADDED OR SUBSTITUTED FOR THOSE
27 ORIGINALLY NAMED IN THE PREPAYMENT AGREEMENT AND OWNERSHIP OF THE ASSETS
28 MAY BE CHANGED DURING THE LIFE OF THE AGREEMENT, PROVIDED THAT NO MORE
29 THAN FIVE UNRELATED INDIVIDUALS SHALL BE INCLUDED UNDER ONE PREPAYMENT
30 AGREEMENT AT ANY ONE TIME; OR
31 B. A UNIT ACCOUNT MAY BE ESTABLISHED FOR NO MORE THAN FIVE UNRELATED
32 BENEFICIARIES. FROM TIME TO TIME, THE PURCHASER MAY TRANSFER UNITS FROM
33 SUCH ACCOUNT TO ONE OR MORE SPECIFIED BENEFICIARIES IN ACCORDANCE WITH
34 PARAGRAPH A OF THIS SUBDIVISION, OR TO A SCHOLARSHIP PROGRAM ESTABLISHED
35 PURSUANT TO THIS SECTION. THE PURCHASER SHALL BE THE OWNER OF THE UNITS
36 UNTIL THEY ARE TRANSFERRED; OR
37 C. ANY NUMBER OF UNITS OF ANY GROUP MAY BE PURCHASED AND DONATED
38 DIRECTLY TO A SCHOLARSHIP PROGRAM ESTABLISHED PURSUANT TO THIS SECTION.
39 THE PERSON OR ORGANIZATION THAT ESTABLISHES SUCH SCHOLARSHIP PROGRAM
40 SHALL BE THE OWNER OF UNITS PURCHASED PURSUANT TO THIS PARAGRAPH, AND
41 THE PURCHASER SHALL HAVE NO RIGHT TO THE UNITS.
42 2. UNIT PRICING. A. IN ACCORDANCE WITH SOUND ACTUARIAL PRACTICES, THE
43 CORPORATION SHALL ESTABLISH, AND RE-ESTABLISH ANNUALLY, PRICES FOR
44 TUITION UNITS WHICH SHALL BE REDEEMABLE IN SPECIFIC YEARS OR PERIODS OF
45 YEARS. TUITION UNIT PRICES SHALL BE BASED ON IN-STATE TUITION, AND SHALL
46 BE ESTABLISHED FOR A TWELVE MONTH PERIOD TO BE DETERMINED BY THE CORPO-
47 RATION. ANNUALLY, THE CORPORATION SHALL HAVE THE ACTUARIAL SOUNDNESS OF
48 THE TRUST FUND EVALUATED BY A NATIONALLY RECOGNIZED ACTUARY AND SHALL
49 DETERMINE WHETHER ADDITIONAL ASSETS ARE NECESSARY TO MEET THE CURRENT
50 AND PROJECTED FUTURE OBLIGATIONS OF THE CORPORATION.
51 B. SEPARATE TUITION UNIT PRICES SHALL BE ESTABLISHED FOR EACH OF THE
52 FOLLOWING COLLEGE GROUPS:
53 (I) COLLEGES FOR WHICH ANNUAL TUITION DOES NOT EXCEED FIVE THOUSAND
54 DOLLARS;
55 (II) COLLEGES FOR WHICH ANNUAL TUITION IS GREATER THAN FIVE THOUSAND
56 DOLLARS BUT NOT MORE THAN TEN THOUSAND DOLLARS;
A. 408 5
1 (III) COLLEGES FOR WHICH ANNUAL TUITION IS GREATER THAN TEN THOUSAND
2 DOLLARS BUT NOT MORE THAN FIFTEEN THOUSAND DOLLARS;
3 (IV) COLLEGES FOR WHICH ANNUAL TUITION IS GREATER THAN FIFTEEN THOU-
4 SAND DOLLARS BUT NOT MORE THAN TWENTY THOUSAND DOLLARS; AND
5 (V) COLLEGES FOR WHICH ANNUAL TUITION EXCEEDS TWENTY THOUSAND DOLLARS.
6 THE CORPORATION MAY, BY REGULATION, ADJUST THE DOLLAR PARAMETERS OF
7 THE GROUPS SET FORTH IN THIS PARAGRAPH, AND ANY SUCH ADJUSTMENT SHALL
8 OPERATE ONLY PROSPECTIVELY.
9 C. TUITION UNIT PRICES SHALL BE BASED ON AN AMOUNT WHICH APPROXIMATES
10 ONE PERCENT OF THE WEIGHTED AVERAGE TUITION FOR EACH GROUP OF COLLEGES.
11 THE TERM "WEIGHTED AVERAGE TUITION," AS USED IN THIS SECTION, MEANS THE
12 TUITION COST RESULTING FROM THE FOLLOWING CALCULATION:
13 (I) ADD THE PRODUCTS OF THE ANNUAL TUITION FOR EACH COLLEGE WITHIN A
14 GROUP, MULTIPLIED BY TOTAL UNDERGRADUATE FISCAL YEAR ENROLLMENT AT EACH
15 COLLEGE; AND
16 (II) DIVIDE THE GROSS TOTAL OF THE PRODUCTS FROM SUBPARAGRAPH (I) OF
17 THIS PARAGRAPH BY THE TOTAL UNDERGRADUATE ACADEMIC YEAR ENROLLMENT FOR
18 EACH GROUP OF COLLEGES.
19 D. ON AN ANNUAL BASIS, THE CORPORATION SHALL COMPILE INFORMATION
20 SUFFICIENT TO CALCULATE THE PRICE OF UNITS AT EACH GROUP OF COLLEGES. ON
21 OR BEFORE JULY THIRTY-FIRST OF EACH YEAR, EACH COLLEGE SHALL CERTIFY TO
22 THE CORPORATION THE TUITION TO BE CHARGED BY SUCH COLLEGE FOR THE
23 ACADEMIC YEAR BEGINNING ON OR AFTER AUGUST FIRST OF THAT YEAR AND ENDING
24 ON OR BEFORE JULY THIRTY-FIRST OF THE FOLLOWING YEAR. AT SUCH TIME AS
25 THE CORPORATION SHALL DETERMINE, EACH COLLEGE SHALL CERTIFY TO THE
26 CORPORATION THE TUITION CHARGED BY THE COLLEGE FOR THE CURRENT OR ANY
27 PREVIOUS ACADEMIC YEAR.
28 E. EACH TUITION UNIT PRICE SHALL INCLUDE AN AMOUNT DEEMED NECESSARY BY
29 THE CORPORATION TO DEFRAY THE COSTS OF ADMINISTERING THE PROGRAM.
30 F. TO PROMOTE THE PURCHASE OF UNITS AND IN ACCORDANCE WITH ACTUARIALLY
31 SOUND PRINCIPLES, THE CORPORATION, IN CONSULTATION WITH THE COMPTROLLER
32 MAY ADJUST THE SALES PRICE AS PART OF INCENTIVE PROGRAMS, SUCH AS
33 DISCOUNTING FOR LUMP SUM PURCHASES AND MULTI-YEAR INSTALLMENT PLANS AT A
34 FIXED RATE OF PURCHASE.
35 3. REDEMPTION OF UNITS. IN ACCORDANCE WITH SUCH TERMS AND CONDITIONS
36 AS SET FORTH IN THIS SECTION, IN THE PREPAYMENT AGREEMENT OR BY RULES OF
37 THE CORPORATION, THE BENEFICIARY MAY REDEEM THE VALUE OF TUITION UNITS,
38 AS FOLLOWS:
39 A. ONE PERCENT OF THE WEIGHTED AVERAGE TUITION FOR THE ACADEMIC YEAR
40 IN WHICH UNITS ARE REDEEMED, CHARGED BY THE COLLEGE GROUP SELECTED BY
41 THE PURCHASER UNDER THE PREPAYMENT AGREEMENT, MULTIPLIED BY THE NUMBER
42 OF TUITION UNITS TO BE REDEEMED IN THE ACADEMIC TERM IN WHICH THE BENE-
43 FICIARY MATRICULATES AT A COLLEGE.
44 B. THE CORPORATION WILL PAY DIRECTLY TO THE COLLEGE IN WHICH A BENEFI-
45 CIARY IS ENROLLED DURING AN ACADEMIC TERM THE AMOUNT REPRESENTED BY THE
46 UNITS BEING REDEEMED THAT TERM. THE BENEFICIARY SHALL BE RESPONSIBLE FOR
47 THE PAYMENT OF ALL CHARGES REQUIRED BY SUCH COLLEGE IN WHICH THE BENEFI-
48 CIARY IS ENROLLED IN EXCESS OF THE VALUE OF UNITS WHICH ARE REDEEMED.
49 C. IF, AT ANY TIME AFTER UNITS ARE PURCHASED ON BEHALF OF A BENEFICI-
50 ARY OR AWARDED TO A BENEFICIARY PURSUANT TO A SCHOLARSHIP PROGRAM, THE
51 BENEFICIARY CHOOSES TO ATTEND A COLLEGE WITHIN A GROUP OTHER THAN THE
52 ONE FOR WHICH UNITS WERE PURCHASED, THE VALUE OF UNITS PURCHASED OR
53 AWARDED TO THE BENEFICIARY MAY BE REDEEMED BY THE BENEFICIARY AND
54 APPLIED TOWARD THE PAYMENT OF ANY TUITION, FEES OR CHARGES OF THE
55 COLLEGE THE BENEFICIARY ATTENDS. THE CORPORATION SHALL PAY DIRECTLY TO
56 THE COLLEGE THE VALUE OF UNITS WHICH ARE REDEEMED.
A. 408 6
1 D. A MINIMUM PERIOD OF FOUR YEARS MUST ELAPSE BETWEEN THE TIME A
2 PREPAYMENT AGREEMENT IS ENTERED INTO AND THE TIME THAT UNITS MAY BE
3 REDEEMED. THE CORPORATION MAY PRESCRIBE AN ALTERNATIVE PERIOD OF TIME,
4 BUT NO SHORTER THAN FOUR YEARS, WHICH MUST ELAPSE BETWEEN THE TIME A
5 PREPAYMENT AGREEMENT IS ENTERED INTO AND THE TIME THAT TUITION UNITS MAY
6 BE REDEEMED.
7 E. THE CORPORATION SHALL PERMIT THE REDEMPTION OF UNITS FOR MASTER'S
8 DEGREE AND OTHER POST BACCALAUREATE PROGRAMS. THE CORPORATION MAY ALSO
9 PERMIT UNITS REMAINING IN AN ACCOUNT AFTER TUITION IS FULLY PAID TO BE
10 APPLIED FOR OTHER EDUCATIONAL EXPENSES AND FEES DIRECTLY CHARGED TO THE
11 BENEFICIARY BY THE COLLEGE.
12 4. NO GUARANTEE. NOTHING IN THIS ARTICLE OR IN ANY PREPAYMENT AGREE-
13 MENT ENTERED INTO PURSUANT TO THIS ARTICLE SHALL BE CONSTRUED AS A GUAR-
14 ANTEE BY THE STATE, THE CORPORATION OR ANY COLLEGE, THAT A BENEFICIARY
15 WILL BE ADMITTED TO A COLLEGE, OR, UPON ADMISSION TO A COLLEGE WILL BE
16 PERMITTED TO CONTINUE TO ATTEND OR WILL RECEIVE A DEGREE FROM A COLLEGE.
17 S 696-E. DISCLOSURE TO PURCHASERS. 1. THE FOLLOWING INFORMATION SHALL
18 BE DISCLOSED BY THE CORPORATION IN WRITING TO EACH PURCHASER AND
19 PROSPECTIVE PURCHASER OF TUITION UNITS AND TO EACH SCHOOL DISTRICT,
20 PUBLIC HIGH SCHOOL, NONPUBLIC HIGH SCHOOL, OR OTHER PERSON OR ORGANIZA-
21 TION MAINTAINING A SCHOLARSHIP PROGRAM:
22 A. THE TERMS AND CONDITIONS FOR PURCHASING TUITION UNITS;
23 B. ANY RESTRICTIONS ON THE SUBSTITUTION OF BENEFICIARIES AND ANY
24 RESTRICTIONS ON THE TRANSFER OF OWNERSHIP OF TUITION UNITS IN THE
25 PAYMENT ACCOUNT;
26 C. THE PERSON OR ENTITY ENTITLED TO TERMINATE THE PREPAYMENT AGREE-
27 MENT;
28 D. THE TERMS AND CONDITIONS UNDER WHICH THE PREPAYMENT AGREEMENT MAY
29 BE TERMINATED AND THE AMOUNT OF THE REFUND AND PENALTY, IF ANY, TO WHICH
30 THE PERSON OR ENTITY TERMINATING THE AGREEMENT, OR THAT PERSON'S OR
31 ENTITY'S DESIGNEE, IS ENTITLED OR RESPONSIBLE FOR, UPON TERMINATION;
32 E. THE OBLIGATION OF THE CORPORATION TO MAKE PAYMENTS TO A COLLEGE ON
33 BEHALF OF A BENEFICIARY, BASED UPON THE NUMBER OF UNITS PURCHASED ON
34 BEHALF OF THE BENEFICIARY OR AWARDED TO THE BENEFICIARY PURSUANT TO A
35 SCHOLARSHIP PROGRAM AND RECITING IN ANY PROMOTIONAL MATERIALS AND IN THE
36 PREPAYMENT AGREEMENT, IN AT LEAST SIXTEEN POINT, BOLD TYPE: "THE BENEFI-
37 CIARY SHALL BE RESPONSIBLE FOR THE PAYMENT OF ALL CHARGES REQUIRED BY
38 SUCH COLLEGE IN WHICH THE BENEFICIARY IS ENROLLED IN EXCESS OF THE VALUE
39 OF UNITS WHICH ARE REDEEMED";
40 F. THE METHOD BY WHICH TUITION UNITS SHALL BE APPLIED TOWARD PAYMENT
41 OF TUITION IF IN ANY ACADEMIC TERM THE BENEFICIARY IS A PART-TIME
42 STUDENT;
43 G. THE METHOD BY WHICH TUITION UNITS SHALL BE APPLIED TOWARD PAYMENT
44 OF TUITION IF DURING ANY ACADEMIC TERM A TUITION CHANGE OCCURS;
45 H. THE PERIOD OF TIME DURING WHICH A BENEFICIARY MAY RECEIVE BENEFITS
46 UNDER THE PREPAYMENT AGREEMENT;
47 I. THE TERMS AND CONDITIONS UNDER WHICH MONEY MAY BE WHOLLY OR
48 PARTIALLY WITHDRAWN FROM THE PROGRAM, INCLUDING, BUT NOT LIMITED TO, ANY
49 REASONABLE CHARGES AND FEES THAT MAY BE IMPOSED FOR WITHDRAWAL;
50 J. THE PROBABLE STATE AND FEDERAL TAX CONSEQUENCES ASSOCIATED WITH
51 PURCHASING AND REDEEMING UNITS; AND
52 K. ALL OTHER RIGHTS AND OBLIGATIONS OF THE PURCHASER AND THE CORPO-
53 RATION AND ANY OTHER TERMS, CONDITIONS, AND PROVISIONS THE CORPORATION
54 CONSIDERS NECESSARY AND APPROPRIATE.
A. 408 7
1 2. PREPAYMENT AGREEMENTS SHALL BE SUBJECT TO SECTION FOURTEEN-C OF THE
2 BANKING LAW AND THE "TRUTH-IN-SAVINGS" REGULATIONS PROMULGATED THERE-
3 UNDER.
4 S 696-F. TERMINATION OF PREPAYMENT AGREEMENTS; REFUNDS. 1. A PREPAY-
5 MENT AGREEMENT MAY BE TERMINATED BY THE PURCHASER, THE BENEFICIARY, OR
6 BY ANY PERSON OR COMBINATION OF PERSONS, AS PROVIDED IN THE PREPAYMENT
7 AGREEMENT, AND THE CORPORATION SHALL ISSUE A REFUND AS PROVIDED IN THIS
8 SUBDIVISION.
9 A. UNLESS OTHERWISE PROVIDED FOR IN THE PREPAYMENT AGREEMENT, A
10 PREPAYMENT AGREEMENT MAY BE TERMINATED BY THE OWNER UNDER ANY OF THE
11 FOLLOWING CIRCUMSTANCES:
12 (I) UPON THE DEATH OR PERMANENT DISABILITY OF THE BENEFICIARY;
13 (II) UPON CERTIFICATION BY THE OWNER OF UNITS UNDER A PREPAYMENT
14 AGREEMENT, NOT MORE THAN FOUR YEARS PRIOR TO THE EARLIEST REDEMPTION
15 DATE PROVIDED BY THE PREPAYMENT AGREEMENT, THAT THE PRINCIPAL AND
16 ACCRUED INTEREST IN SUCH OWNER'S ACCOUNT WILL BE TRANSFERRED TO ANOTHER
17 PREPAID TUITION PROGRAM OFFERED BY A COLLEGE OR ANOTHER STATE;
18 (III) UPON NOTIFICATION TO THE BOARD IN WRITING THAT THE BENEFICIARY
19 IS AGE EIGHTEEN OR OLDER, AND HAS DECIDED NOT TO ATTEND A COLLEGE;
20 (IV) UPON COMPLETION OF THE DEGREE REQUIREMENTS AT A COLLEGE;
21 (V) UPON A DECISION BY THE BENEFICIARY TO ATTEND A COLLEGE OR UNIVER-
22 SITY LOCATED OUTSIDE OF THE STATE; AND
23 (VI) UPON THE OCCURRENCE OF OTHER CIRCUMSTANCES DETERMINED BY THE
24 CORPORATION TO BE GROUNDS FOR TERMINATION.
25 B. IN THE CASE OF A TERMINATION UNDER SUBPARAGRAPH (I) OF PARAGRAPH A
26 OF THIS SUBDIVISION, THE OWNER SHALL BE ENTITLED TO AND RECEIVE THE FULL
27 VALUE OF UNITS, WITHOUT PENALTY, FOR THE YEAR IN WHICH SUCH TERMINATION
28 OCCURS OR SHALL BE ENTITLED TO SUBSTITUTE A NEW BENEFICIARY UNDER THE
29 EXISTING PREPAYMENT AGREEMENT.
30 C. FOR EACH CATEGORY OF TERMINATIONS UNDER PARAGRAPH A OF THIS SUBDI-
31 VISION, OTHER THAN UNDER SUBPARAGRAPH (I) OF SUCH PARAGRAPH, THE CORPO-
32 RATION SHALL PRESCRIBE, BY RULE, THE PERCENTAGE OF VALUE OF UNITS, THE
33 METHOD AND THE SCHEDULE FOR PAYMENT OF REFUNDS UPON TERMINATION OF A
34 PREPAYMENT AGREEMENT.
35 D. IF A BENEFICIARY IS AWARDED A SCHOLARSHIP OTHER THAN UNDER A SCHOL-
36 ARSHIP PROGRAM ESTABLISHED UNDER THIS ARTICLE, A TUITION WAIVER, GRANT,
37 OR THE LIKE, THAT THE CORPORATION DETERMINES CANNOT BE CONVERTED INTO
38 MONEY BY THE BENEFICIARY, THE CORPORATION SHALL, DURING EACH ACADEMIC
39 TERM THAT THE BENEFICIARY FURNISHES THE CORPORATION SUCH INFORMATION
40 ABOUT SUCH SCHOLARSHIP, WAIVER, OR GRANT, AS THE CORPORATION REQUIRES,
41 REFUND TO THE BENEFICIARY, WITHOUT PENALTY, AN AMOUNT EQUAL TO THE VALUE
42 OF THE TUITION UNITS THAT WOULD HAVE BEEN DIRECTLY PAID TO A COLLEGE IF
43 THE SCHOLARSHIP, WAIVER, OR GRANT HAD NOT BEEN AVAILABLE TO THE BENEFI-
44 CIARY FOR THAT PURPOSE.
45 2. IF A PREPAYMENT AGREEMENT HAS NOT BEEN TERMINATED OR A BENEFICIARY
46 DESIGNATED IN THE PREPAYMENT AGREEMENT HAS NOT USED TUITION UNITS WITHIN
47 THE TIME SPECIFIED IN SUCH AGREEMENT, THE RIGHTS AND PROCEDURES
48 PRESCRIBED BY THE ABANDONED PROPERTY LAW SHALL APPLY.
49 3. IF, IN ANY ACADEMIC TERM FOR WHICH UNITS HAVE BEEN USED TO PAY ALL
50 OR PART OF A BENEFICIARY'S TUITION, THE BENEFICIARY WITHDRAWS FROM A
51 COLLEGE PRIOR TO THE END OF THE ACADEMIC TERM, ANY REFUND OF TUITION AS
52 A RESULT OF THE WITHDRAWAL WHICH IS ATTRIBUTABLE TO THE REDEMPTION OF
53 UNITS FOR SUCH TERM SHALL BE MADE TO THE CORPORATION, UNLESS THE CORPO-
54 RATION DESIGNATES A DIFFERENT PROCEDURE. THE CORPORATION SHALL CREDIT
55 ANY REFUND RECEIVED, LESS ANY REASONABLE CHARGES AND FEES PROVIDED FOR
56 BY THE CORPORATION, TO THE BENEFICIARY'S ACCOUNT.
A. 408 8
1 S 696-G. STATE FINANCIAL AID. OWNERSHIP OF CREDITS SHALL NOT PENALIZE
2 PURCHASERS OR BENEFICIARIES IN ANY DETERMINATION OF ELIGIBILITY FOR
3 STATE FUNDED GENERAL AWARDS, ACADEMIC PERFORMANCE AWARDS OR FELLOWSHIPS,
4 INCLUDING TUITION ASSISTANCE PROGRAM AWARDS.
5 S 696-H. SCHOLARSHIP PROGRAM. 1. THE BOARD OF EDUCATION OF ANY SCHOOL
6 DISTRICT, OR THE GOVERNING BOARD OF ANY NONPROFIT EDUCATIONAL, RELIGIOUS
7 OR CHARITABLE ORGANIZATION MAY ESTABLISH A SCHOLARSHIP PROGRAM TO AWARD
8 SCHOLARSHIPS CONSISTING OF UNITS PURCHASED PURSUANT TO PREPAYMENT AGREE-
9 MENTS. ANY SCHOLARSHIP PROGRAM ESTABLISHED UNDER THIS SECTION SHALL BE
10 REGISTERED WITH THE CORPORATION. THE CORPORATION SHALL BE NOTIFIED OF
11 THE NAME AND ADDRESS OF EACH SCHOLARSHIP BENEFICIARY UNDER THE SCHOLAR-
12 SHIP PROGRAM, THE NUMBER OF TUITION UNITS AWARDED, AND THE COLLEGE IN
13 WHICH THE BENEFICIARY SHALL BE ENROLLED. SCHOLARSHIP BENEFICIARIES SHALL
14 BE SELECTED BY THE GOVERNING BODY OF THE ORGANIZATION THAT ESTABLISHED
15 THE SCHOLARSHIP PROGRAM IN ACCORDANCE WITH CRITERIA ESTABLISHED BY SUCH
16 GOVERNING BODY. IN THE CASE OF A SCHOLARSHIP PROGRAM ESTABLISHED BY A
17 BOARD OF EDUCATION, SCHOLARSHIPS SHALL BE AWARDED ONLY TO STUDENTS
18 ENROLLED IN THE SCHOOL DISTRICT. NO BENEFICIARY MAY RECEIVE MORE THAN
19 THE MINIMUM NUMBER OF UNITS NECESSARY TO FUND FOUR ACADEMIC YEARS AT THE
20 SELECTED COLLEGE.
21 2. ANY PERSON OR ENTITY MAY PURCHASE UNITS ON BEHALF OF A SCHOLARSHIP
22 PROGRAM ESTABLISHED UNDER THIS SECTION AND REGISTERED WITH THE CORPO-
23 RATION AT THE SAME PRICE AS CHARGED FOR THE PURCHASE OF UNITS FOR NAMED
24 BENEFICIARIES PURSUANT TO THIS ARTICLE, AS PROVIDED IN SUBDIVISION THREE
25 OF THIS SECTION. SUCH UNITS SHALL HAVE THE SAME VALUE TO THE BENEFICIARY
26 OF A SCHOLARSHIP AWARDED PURSUANT TO THIS SECTION AS THEY WOULD HAVE TO
27 ANY OTHER BENEFICIARY.
28 3. IF A SCHOLARSHIP BENEFICIARY DOES NOT USE UNITS AWARDED WITHIN A
29 LENGTH OF TIME SPECIFIED UNDER THE SCHOLARSHIP PROGRAM, THE GOVERNING
30 BOARD OF THE SCHOLARSHIP PROGRAM MAY AWARD THE UNITS TO ANOTHER BENEFI-
31 CIARY.
32 S 696-I. ANNUAL ACCOUNTING AND ACTUARIAL STUDY. 1. THE CORPORATION
33 SHALL PREPARE, IN CONSULTATION WITH THE COMPTROLLER, AND CAUSE TO HAVE
34 AUDITED AN ANNUAL FINANCIAL REPORT ON ALL FINANCIAL ACTIVITY OF THE
35 TRUST FUND, WITHIN NINETY DAYS OF THE END OF THE FISCAL YEAR. BIENNIAL-
36 LY, THE CORPORATION SHALL CONTRACT WITH A NATIONALLY RECOGNIZED FIRM TO
37 PERFORM A MANAGEMENT AUDIT OF THE PROGRAM, WHICH SHALL INCLUDE A COMPLI-
38 ANCE AUDIT OF THE PROGRAM'S COMPLIANCE WITH THE "TRUTH-IN-SAVINGS" REGU-
39 LATIONS, AS REQUIRED BY SECTION SIX HUNDRED NINETY-SIX-E OF THIS ARTI-
40 CLE. THE CORPORATION AND THE COMPTROLLER SHALL TRANSMIT THE AUDITED
41 FINANCIAL REPORT AND THE MANAGEMENT AUDIT, WITHIN THIRTY DAYS OF
42 COMPLETION, TO THE GOVERNOR AND TO THE CHAIRPERSON AND RANKING MINORITY
43 MEMBER OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE CHAIRPERSON AND
44 RANKING MINORITY MEMBER OF THE SENATE FINANCE COMMITTEE, AND THE CHAIR-
45 PERSONS AND RANKING MINORITY MEMBERS OF THE ASSEMBLY AND SENATE HIGHER
46 EDUCATION COMMITTEES. COPIES OF THE AUDITED FINANCIAL REPORT AND THE
47 MANAGEMENT AUDIT ALSO SHALL BE MADE AVAILABLE, UPON REQUEST, TO THE
48 PUBLIC.
49 2. THE COMPTROLLER OR HIS OR HER LEGALLY AUTHORIZED REPRESENTATIVE,
50 FROM TIME TO TIME MAY EXAMINE THE BOOKS AND ACCOUNTS OF THE CORPORATION
51 INCLUDING ITS RECEIPTS, DISBURSEMENTS, CONTRACTS, ADMINISTRATIVE
52 EXPENSES AND ANY OTHER MATTERS RELATING TO THE FINANCIAL STANDING OF THE
53 TRUST FUND.
54 S 696-J. EXEMPTION FROM SECURITY LAWS. PREPAYMENT AGREEMENTS AND UNITS
55 ARE EXEMPT FROM ANY STATE STATUTE REGULATING SECURITIES, INCLUDING ARTI-
56 CLE TWENTY-THREE OF THE GENERAL BUSINESS LAW.
A. 408 9
1 S 696-K. RELIEF FROM ATTACHMENT. THE RIGHT OF A PERSON TO A CREDIT OR
2 A PAYMENT UNDER THIS ARTICLE PURSUANT TO A PREPAYMENT AGREEMENT OR SCHO-
3 LARSHIP PROGRAM SHALL NOT BE SUBJECT TO EXECUTION, GARNISHMENT, ATTACH-
4 MENT, THE OPERATION OF BANKRUPTCY OR THE INSOLVENCY LAWS, OR OTHER PROC-
5 ESS OF LAW.
6 S 3. The state finance law is amended by adding a new section 78-c to
7 read as follows:
8 S 78-C. NEW YORK STATE FAMILY TUITION INVESTMENT PROGRAM TRUST FUND.
9 A. THERE IS HEREBY ESTABLISHED IN THE SOLE CUSTODY OF THE STATE COMP-
10 TROLLER A SPECIAL FUND TO BE KNOWN AS THE "NEW YORK STATE FAMILY TUITION
11 INVESTMENT PROGRAM TRUST FUND", WHICH SHALL BE OUTSIDE THE STATE TREAS-
12 URY. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF SECTION SIX
13 HUNDRED NINETY-SIX-C OF THE EDUCATION LAW, OR ANY OTHER LAW, MONEYS MAY
14 BE PAID OUT OF SUCH FUND WITHOUT AN APPROPRIATION BY LAW. ALL PAYMENTS
15 OF MONEYS FROM SUCH FUND SHALL BE MADE ONLY IN ACCORDANCE WITH THE RULES
16 AND REGULATIONS OF THE NEW YORK STATE HIGHER EDUCATION SERVICES CORPO-
17 RATION AND THE COMPTROLLER.
18 B. THE TRUST FUND SHALL CONSIST OF A TRUST ACCOUNT AND AN OPERATING
19 ACCOUNT. THE TRUST ACCOUNT SHALL CONSIST OF MONEYS RECEIVED BY THE NEW
20 YORK STATE HIGHER EDUCATION SERVICES CORPORATION PURSUANT TO PREPAYMENT
21 AGREEMENTS, ALL INTEREST AND INVESTMENT INCOME EARNED BY THE TRUST FUND,
22 ADMINISTRATIVE CHARGES AND FEES RECEIVED BY THE PROGRAM AND ALL RECEIPTS
23 OF THE PROGRAM FROM ANY OTHER SOURCE. UPON CERTIFICATION OF THE CHAIR-
24 PERSON OF THE NEW YORK STATE HIGHER EDUCATION SERVICES CORPORATION, THE
25 COMPTROLLER SHALL, FROM TIME TO TIME, TRANSFER MONEYS FROM THE TRUST
26 ACCOUNT TO THE OPERATING ACCOUNT TO BE USED FOR THE IMMEDIATE PAYMENT OF
27 OBLIGATIONS OF THE NEW YORK STATE HIGHER EDUCATION SERVICES CORPORATION
28 UNDER PREPAYMENT AGREEMENTS, AND THE COST OF ADMINISTERING THE NEW YORK
29 STATE FAMILY TUITION INVESTMENT PROGRAM.
30 C. MONEYS IN THE TRUST FUND SHALL BE KEPT SEPARATE AND SHALL NOT BE
31 COMMINGLED WITH OTHER FUNDS. THE COMPTROLLER SHALL INVEST THE MONEYS IN
32 THE TRUST FUND, ON BEHALF OF THE NEW YORK STATE HIGHER EDUCATION
33 SERVICES CORPORATION, PURSUANT TO THE STANDARDS SET FORTH IN PARAGRAPH
34 (B) OF SUBDIVISION NINE OF SECTION ONE HUNDRED SEVENTY-SEVEN OF THE
35 RETIREMENT AND SOCIAL SECURITY LAW. THE COMPTROLLER MAY ENTER INTO WRIT-
36 TEN AGREEMENTS WITH ONE OR MORE FINANCIAL ORGANIZATIONS FOR THE INVEST-
37 MENT AND CUSTODY OF TRUST FUNDS. ALL INVESTMENT FEES AND OTHER COSTS
38 INCURRED IN CONNECTION WITH THE INVESTMENT OF THE TRUST FUND MONEYS AND
39 REASONABLE EXPENSES OF ADMINISTERING THE TRUST FUND SHALL BE PAID FROM
40 THE ASSETS OF THE FUND.
41 D. MONEYS IN THE TRUST FUND NOT REQUIRED FOR THE IMMEDIATE PAYMENT OF
42 OBLIGATIONS OF THE NEW YORK STATE HIGHER EDUCATION SERVICES CORPORATION
43 UNDER PREPAYMENT AGREEMENTS AND THE COST OF ADMINISTERING THE NEW YORK
44 STATE FAMILY TUITION PROGRAM MAY BE CONTRACTUALLY LOANED TO THE STATE
45 UNIVERSITY OF NEW YORK AND THE CITY UNIVERSITY OF NEW YORK TO BE
46 UTILIZED FOR EDUCATIONAL PURPOSES AS DETAILED WITHIN SAID LOANS. ANY
47 CONTRACTS ENTERED INTO BY THE COMPTROLLER UNDER THIS SECTION SHALL
48 PROVIDE FOR A REPAYMENT SCHEDULE WITH INTEREST WHICH ENSURES THE TRUST
49 FUND'S ABILITY TO MEET ITS OBLIGATIONS UNDER THE NEW YORK STATE FAMILY
50 TUITION INVESTMENT PROGRAM. THE TOTAL OF ALL AMOUNTS LOANED TO THE STATE
51 UNIVERSITY OF NEW YORK AND THE CITY UNIVERSITY OF NEW YORK SHALL BE IN
52 THE SAME PROPORTION AS THE PROPORTION OF THE AVERAGE STATE FUNDS
53 PROVIDED TO EACH SYSTEM DURING THE LAST FIVE YEARS.
54 S 4. This act shall take effect on the first of July next succeeding
55 the date on which it shall have become a law.
