Bill Text: NY A10115 | 2017-2018 | General Assembly | Introduced
Bill Title: Amends the New York state college choice tuition savings program to have the program also apply to elementary and secondary schools.
Spectrum: Strong Partisan Bill (Republican 10-1)
Status: (Introduced - Dead) 2018-04-25 - held for consideration in education [A10115 Detail]
Download: New_York-2017-A10115-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10115 IN ASSEMBLY March 15, 2018 ___________ Introduced by M. of A. CASTORINA -- 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 [college9choice] 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: 23 c. The ability of the investment instrument to track increasing costs 24 of [higher] education; 25 § 6. Paragraphs 32 and 33 of subsection (c) of section 612 of the tax 26 law, paragraph 32 as amended by chapter 81 of the laws of 2008 and para- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14679-01-8A. 10115 2 1 graph 33 as added by chapter 546 of the laws of 1997, are amended to 2 read as follows: 3 (32) Contributions made during the taxable year by an account owner to 4 one or more family tuition accounts established under the New York state 5 [college choice] tuition savings program provided for under article 6 fourteen-A of the education law, to the extent not deductible or eligi- 7 ble for credit for federal income tax purposes, provided, however, the 8 exclusion provided for in this paragraph shall not exceed five thousand 9 dollars for an individual or head of household, and for married couples 10 who file joint tax returns, shall not exceed ten thousand dollars; 11 provided, further, that such exclusion shall be available only to the 12 account owner and not to any other person. 13 (33) Distributions from a family tuition account established under the 14 New York state [college choice] tuition savings program provided for 15 under article fourteen-A of the education law, to the extent includible 16 in gross income for federal income tax purposes. 17 § 7. Paragraph 3 of subsection (d) of section 658 of the tax law, as 18 added by chapter 546 of the laws of 1997, is amended to read as follows: 19 (3) The commissioner may by regulation or instruction require the 20 filing of a report annually by the comptroller or program manager of the 21 New York state [college choice] tuition savings program, or their desig- 22 nee, setting forth the names and identification numbers of account 23 owners, designated beneficiaries and distributees of family tuition 24 accounts, the amounts contributed to such accounts, the amounts distrib- 25 uted from such accounts and the nature of such distributions as quali- 26 fied withdrawals or as withdrawals other than qualified withdrawals, and 27 any such other information as the commissioner may require regarding the 28 taxation under this article of amounts contributed to or withdrawn from 29 such accounts. The commissioner may require that any such report also be 30 made to the account owner, designated beneficiary or distributee of any 31 such account. 32 § 8. The section heading and subdivisions 1 and 2 of section 78 of the 33 state finance law, as added by chapter 546 of the laws of 1997, are 34 amended to read as follows: 35 New York state [college choice] tuition savings program trust fund. 36 1. There is hereby established in the sole custody of the state comp- 37 troller a special fund to be known as the New York state [college38choice] tuition savings program trust fund. All payments from such fund 39 shall be made in accordance with article fourteen-A of the education law 40 and the memorandum of understanding entered into pursuant thereto on the 41 audit of the state comptroller. 42 2. The fund shall be a trust fund and shall consist of a trust account 43 and an operating account. The trust account shall include amounts 44 received by the New York state [college choice] tuition savings program 45 pursuant to tuition savings agreements, administrative charges, fees, 46 and all other amounts received by the program from other sources, and 47 interest and investment income earned by the trust fund. The comptroller 48 shall, from time to time, make transfers from the trust account to the 49 operating account for the immediate payment of obligations under tuition 50 savings agreements, operating expenses and administrative costs of the 51 New York state [college choice] tuition savings program. Administrative 52 costs shall be paid out of the operating account according to the terms 53 and conditions established pursuant to the provisions of section six 54 hundred ninety-five-c of the education law.A. 10115 3 1 § 9. The opening paragraph of subdivision (j) of section 5205 of the 2 civil practice law and rules, as added by chapter 546 of the laws of 3 1997, is amended to read as follows: 4 Exemption for New York state [college choice] tuition savings program 5 trust fund payment monies. Monies in an account created pursuant to 6 article fourteen-A of the education law are exempt from application to 7 the satisfaction of a money judgment as follows: 8 § 10. This act shall take effect immediately and shall apply to taxa- 9 ble years beginning on or after January 1, 2018.
