S. 3506 2
EDUCATION DOUBLING IN THE LAST FIVE YEARS OF THE LAST DECADE, DURING A
PERIOD OF EXTREMELY LOW INFLATION.
THE LEGISLATURE FURTHER FINDS AND DETERMINES THAT THE STATE OF NEW
YORK MUST ADVANCE TWO GOALS TO ASSIST ALL ITS CITIZENS TO MORE EASILY
AFFORD A COLLEGE EDUCATION. FIRST TO ASSIST NEW YORKERS TO SAVE FOR
THEIR CHILDREN'S EDUCATION, IN A NON-TAXABLE, RESPONSIBLE, AND PRODUC-
TIVE MANNER THAT WILL NOT OVERBURDEN THE PARENTS. SECOND TO GUARANTEE
NEW YORKERS WHO DO SO PARTICIPATE IN THIS PROGRAM, THAT UPON THE CONCLU-
SION OF THE PAYMENT SCHEDULE, THAT THEY CAN OBTAIN A FOUR YEAR, DEBT
FREE, HIGH QUALITY, AND COMPLETELY PAID COLLEGE EDUCATION. SUCH A
PREPAID COLLEGE EDUCATION WOULD ADVANCE EDUCATIONAL OPPORTUNITY ACROSS
THE STATE AND ESPECIALLY ASSIST MIDDLE CLASS FAMILIES WHO ARE NOT ELIGI-
BLE FOR OTHER TUITION ASSISTANCE PROGRAMS.
THE LEGISLATURE ADDITIONALLY FINDS AND DETERMINES, THAT THE BEST WAY
TO ENSURE THE SUCCESS OF A PREPAID COLLEGE EDUCATION PROGRAM IS TO
ESTABLISH A PUBLIC BENEFIT CORPORATION FOR ITS ADMINISTRATION. SUCH
PUBLIC BENEFIT CORPORATION WOULD ADVANCE THESE GOALS BY PROVIDING A
SOLVENT, ASSURED, AND FISCALLY RESPONSIBLE VEHICLE TO OFFER THE BENEFITS
OF SAVING FOR A COLLEGE EDUCATION TO ALL NEW YORKERS. IN DOING SO, IT
WOULD OFFER ALL NEW YORK FAMILIES THE OPPORTUNITY TO MORE EASILY FINANCE
A COLLEGE EDUCATION.
THE LEGISLATURE FURTHER FINDS AND DETERMINES THAT IN THIS NEW AGE OF
INFORMATION, THE DELIVERY OF A COLLEGE EDUCATION TO EVERY NEW YORKER WHO
WANTS ONE IS CRITICALLY IMPORTANT TO OUR STATE. EDUCATION OPENS THE
DOORS OF OPPORTUNITY, AND THE PUBLIC BENEFIT CORPORATION ESTABLISHED BY
THIS TITLE, WILL PERMIT MANY MORE PEOPLE TO NOT ONLY OPEN THAT DOOR, BUT
ALSO WALK THROUGH IT WITHOUT AN UNBEARABLE COST OR DEBT BURDEN THAT
WOULD OTHERWISE IMPAIR THEIR FUTURE.
S 1750-B. DEFINITIONS. 1. "PARTICIPANT" SHALL MEAN ANY PERSON WHO IS
A RESIDENT OF THE STATE OF NEW YORK FOR WHOSE BENEFIT CONTRIBUTIONS INTO
THE EMPIRE STATE COLLEGE SAVINGS PROGRAM HAVE BEEN MADE.
2. "CONTRIBUTOR" SHALL MEAN ANY PERSON WHO MAKES CONTRIBUTIONS INTO
THE EMPIRE STATE COLLEGE SAVINGS PROGRAM ON BEHALF OF A PARTICIPANT.
3. "ELIGIBLE PARTICIPANT" SHALL MEAN ANY ENROLLED PARTICIPANT FOR WHOM
ALL CONTRIBUTIONS PURSUANT TO SECTION SEVENTEEN HUNDRED FIFTY-F OF THIS
TITLE HAVE BEEN MADE.
4. "ENROLLED PARTICIPANT" IS ANY PARTICIPANT WHO IS ENROLLED IN THE
EMPIRE STATE COLLEGE SAVINGS PROGRAM PURSUANT TO SECTION SEVENTEEN
HUNDRED FIFTY-E OF THIS TITLE.
5. "PROGRAM BENEFITS" SHALL MEAN FREE TUITION FOR FOUR YEARS AT ANY
STATE UNIVERSITY OF NEW YORK OR AN EQUIVALENT COLLEGE AID VOUCHER.
6. "EQUIVALENT COLLEGE AID VOUCHER" SHALL MEAN A STATE VOUCHER, PAID
ANNUALLY FOR FOUR YEARS TO A RECOGNIZED COLLEGE OR UNIVERSITY ON BEHALF
OF AN ELIGIBLE PARTICIPANT, WHICH IS EQUAL TO NINETY-FIVE PERCENT OF THE
AMOUNT OF THE ANNUAL TUITION AT A STATE UNIVERSITY OF NEW YORK.
S 1750-C. EMPIRE STATE COLLEGE SAVINGS AUTHORITY. 1. THE EMPIRE STATE
COLLEGE SAVINGS AUTHORITY IS HEREBY CREATED. SUCH AUTHORITY SHALL BE A
BODY CORPORATE AND POLITIC CONSTITUTING A PUBLIC BENEFIT CORPORATION.
THE GOVERNING BODY OF THE AUTHORITY SHALL BE A BOARD. THE AUTHORITY
SHALL CONSIST OF NINE MEMBERS WHO ARE RESIDENTS OF THE STATE OF NEW
YORK, AS FOLLOWS:
(A) THE CHANCELLOR OF THE STATE UNIVERSITY OF NEW YORK;
(B) THE COMPTROLLER OF THE STATE OF NEW YORK;
(C) A REPRESENTATIVE OF PUBLIC COLLEGES AND UNIVERSITIES APPOINTED BY
THE GOVERNOR AND CONFIRMED BY THE SENATE;
S. 3506 3
(D) A REPRESENTATIVE OF PRIVATE COLLEGES AND UNIVERSITIES APPOINTED BY
THE GOVERNOR AND CONFIRMED BY THE SENATE;
(E) A REPRESENTATIVE OF COLLEGE STUDENTS APPOINTED BY THE GOVERNOR AND
CONFIRMED BY THE SENATE;
(F) A REPRESENTATIVE APPOINTED BY THE TEMPORARY PRESIDENT OF THE
SENATE;
(G) A REPRESENTATIVE APPOINTED BY THE SPEAKER OF THE ASSEMBLY; AND
(H) TWO EX-OFFICIO MEMBERS, ONE APPOINTED BY THE MINORITY LEADER OF
THE SENATE AND ONE APPOINTED BY THE MINORITY LEADER OF THE ASSEMBLY, WHO
SHALL BOTH BE NON-VOTING MEMBERS WHOSE COMMENTS SHALL BE ENTERED UPON
ANY OFFICIAL RECORD OF BOARD PROCEEDINGS IN THE SAME MANNER AS VOTING
MEMBERS' COMMENTS, UNLESS OBJECTION IS RAISED BY ANY OF THE VOTING
MEMBERS IN WHICH CASE, NOTWITHSTANDING ANY PROVISION OF LAW TO THE
CONTRARY, SUCH COMMENTS BY NON-VOTING MEMBERS SHALL NOT BE SO ENTERED.
ALL THE APPOINTED MEMBERS OF THE GOVERNING BOARD SHALL SERVE FOR A
TERM OF FIVE YEARS EACH, WITH EACH TERM COMMENCING FROM THE FIRST DAY OF
JANUARY NEXT SUCCEEDING THEIR APPOINTMENT. EACH MEMBER SHALL HOLD OFFICE
UNTIL A SUCCESSOR HAS BEEN APPOINTED AND QUALIFIED.
2. THE CHANCELLOR OF THE STATE UNIVERSITY OF NEW YORK SHALL BE THE
CHAIRPERSON OF THE GOVERNING BOARD AND THE COMPTROLLER OF THE STATE OF
NEW YORK SHALL SERVE AS ITS VICE-CHAIRPERSON. THE CHAIRPERSON SHALL BE
THE CHIEF EXECUTIVE OFFICER OF THE AUTHORITY AND SHALL BE PRIMARILY
RESPONSIBLE FOR THE DISCHARGE OF THE ADMINISTRATIVE FUNCTIONS OF THE
AUTHORITY. THE CHAIRPERSON MAY APPOINT AN EXECUTIVE DIRECTOR OF THE
AUTHORITY, UPON ADVICE AND CONSENT OF THE BOARD, TO WHICH SUCH ADMINIS-
TRATIVE FUNCTIONS MAY BE DELEGATED. THE EXECUTIVE DIRECTOR SHALL BE
DEEMED AN EMPLOYEE OF THE AUTHORITY, AND AS SUCH BE AN EXEMPT MANAGEMENT
CONFIDENTIAL EMPLOYEE, WHO IS A PUBLIC OFFICER AND ENTITLED TO AN ANNUAL
SALARY AS ESTABLISHED BY THE AUTHORITY BOARD.
3. THE POWER OF SUCH CORPORATION SHALL BE VESTED IN AND EXERCISED BY
THE BOARD. THE PURPOSE OF THE AUTHORITY IS TO ADMINISTER THE EMPIRE
STATE COLLEGE SAVINGS PROGRAM. SUCH PROGRAM IS INTENDED TO ASSIST NEW
YORKERS TO SAVE FOR THEIR CHILDREN'S EDUCATION, IN A NON-TAXABLE,
RESPONSIBLE, AND PRODUCTIVE MANNER THAT WILL NOT OVERBURDEN THE PARENTS
AND TO GUARANTEE NEW YORKERS WHO DO SO PARTICIPATE IN THIS PROGRAM, THAT
UPON THE CONCLUSION OF THE PAYMENT SCHEDULE, THAT THEY CAN OBTAIN A FOUR
YEAR, DEBT FREE, HIGH QUALITY, AND COMPLETELY PAID COLLEGE EDUCATION.
4. THE GOVERNING BOARD AND ITS CORPORATE EXISTENCE SHALL CONTINUE
UNTIL ITS EXISTENCE SHALL BE TERMINATED BY LAW. UPON THE TERMINATION OF
THE EXISTENCE OF THE AUTHORITY, ALL ITS RIGHTS AND PROPERTIES SHALL PASS
TO AND BE VESTED IN THE STATE OF NEW YORK. SUCH BOARD MAY DELEGATE TO
ONE OR MORE OF ITS MEMBERS OR ITS OFFICERS, AGENTS AND EMPLOYEES SUCH
POWERS AND DUTIES AS IT MAY DEEM PROPER.
5. FOUR VOTING MEMBERS OF THE BOARD SHALL CONSTITUTE A QUORUM FOR THE
TRANSACTION OF BUSINESS. A MAJORITY VOTE OF THE MEMBERS OF THE BOARD
PRESENT AT ANY MEETING AT WHICH A QUORUM IS PRESENT SHALL BE SUFFICIENT
TO PASS ANY RESOLUTION, EXCEPT AS OTHERWISE SPECIFIED IN THIS TITLE. ALL
PROPOSITIONS REQUIRING THE EXPENDITURE OF MONEY OR AFFECTING CONTRACT
RIGHTS OR PROPERTY SHALL BE PRESENTED TO THE BOARD IN WRITING. NO RESOL-
UTION CONTAINING SUCH A PROPOSITION SHALL PASS UNLESS IT RECEIVES
APPROVAL OF AT LEAST FOUR BOARD MEMBERS IN OFFICE.
6. THE BOARD SHALL HOLD AT LEAST FOUR REGULAR MEETINGS EVERY YEAR.
THE CHAIRPERSON, OR IN HIS OR HER ABSENCE THE VICE-CHAIRPERSON, OR ANY
FIVE MEMBERS, MAY CALL A SPECIAL MEETING BY NOTICE AS SPECIFIED BY THE
BOARD. ALL MEETINGS OF THE BOARD SHALL BE SUBJECT TO ARTICLE SEVEN OF
THE PUBLIC OFFICERS LAW.
S. 3506 4
7. MEMBERS OF THE BOARD SHALL BE ENTITLED TO NO COMPENSATION FOR THEIR
SERVICES, BUT SHALL BE ENTITLED TO REIMBURSEMENT FOR THEIR ACTUAL,
NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR OFFICIAL DUTIES.
8. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW, NO OFFICER, AS
DEFINED IN THE PUBLIC OFFICERS LAW, OR EMPLOYEE OF THE STATE, OR OF ANY
MUNICIPALITY, AS DEFINED IN THE COUNTY LAW OR THE TOWN LAW, SHALL BE
DEEMED TO HAVE FORFEITED OR SHALL FORFEIT HIS OR HER PUBLIC OFFICE OR
ANY BENEFITS PROVIDED UNDER THE RETIREMENT AND SOCIAL SECURITY LAW OR
UNDER ANY PUBLIC RETIREMENT SYSTEM MAINTAINED BY THE STATE OR ANY OF ITS
SUBDIVISIONS BY REASON OF HIS OR HER ACCEPTANCE OF MEMBERSHIP ON THE
AUTHORITY; PROVIDED, HOWEVER, A MEMBER WHO HOLDS SUCH OTHER PUBLIC
OFFICE SHALL RECEIVE NO ADDITIONAL COMPENSATION FOR SERVICES RENDERED
PURSUANT TO THIS TITLE, BUT SHALL BE ENTITLED TO REIMBURSEMENT FOR ACTU-
AL, NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF SUCH SERVICES.
9. THE PRINCIPAL OFFICE OF THE AUTHORITY SHALL BE LOCATED IN THE CITY
OF ALBANY.
10. THE COMPTROLLER MAY CONDUCT PERIODIC AUDITS OF THE AUTHORITY AND
REPORT THE RESULTS OF SUCH AUDITS TO THE GOVERNOR, THE CHAIRPERSON OF
THE SENATE FINANCE COMMITTEE, AND THE CHAIRPERSON OF THE ASSEMBLY WAYS
AND MEANS COMMITTEE.
11. SUBJECT TO THE PROVISIONS OF THIS TITLE, APPOINTED MEMBERS OF THE
AUTHORITY MAY ENGAGE IN PRIVATE EMPLOYMENT, OR IN A PROFESSION OR BUSI-
NESS.
S 1750-D. EMPIRE STATE COLLEGE SAVINGS PROGRAM ACCOUNT. THE EMPIRE
STATE COLLEGE SAVINGS PROGRAM SHALL PROVIDE FOR THE ESTABLISHMENT OF AN
EMPIRE STATE COLLEGE SAVINGS PROGRAM ACCOUNT INTO WHICH ALL CONTRIB-
UTIONS FOR A PARTICIPANT SHALL BE DEPOSITED AND FROM WHICH ALL DISBURSE-
MENTS FOR THE PROGRAM'S PURPOSES SHALL BE MADE. THE GOVERNING BOARD
SHALL BE THE JOINT TRUSTEES OF THE EMPIRE STATE COLLEGE SAVINGS PROGRAM
ACCOUNT AND SHALL INVEST THE MONIES OF THE SAME SO AS TO SECURE THE
HIGHEST RATE OF RETURN POSSIBLE WITHOUT JEOPARDIZING THE SOLVENCY OF
SUCH ACCOUNT.
S 1750-E. ENROLLMENT. 1. THE PARENT OR LEGAL GUARDIAN OF ANY CHILD
WHO IS LESS THAN SIX YEARS OF AGE AND WHO RESIDES IN THE STATE OF NEW
YORK MAY ENROLL SUCH CHILD IN THE EMPIRE STATE COLLEGE SAVINGS PROGRAM
AS A PARTICIPANT OF SUCH PROGRAM. UPON ENROLLMENT AS A PARTICIPANT IN
THE EMPIRE STATE COLLEGE SAVINGS PROGRAM, CONTRIBUTIONS SHALL BE ANNUAL-
LY MADE TO THE EMPIRE STATE COLLEGE SAVINGS PROGRAM ACCOUNT PURSUANT TO
SECTION SEVENTEEN HUNDRED FIFTY-F OF THIS TITLE.
2. THE PARENT OR LEGAL GUARDIAN OF ANY CHILD WHO IS LESS THAN THIRTEEN
YEARS OF AGE AND WHO RESIDES IN THE STATE OF NEW YORK MAY ENROLL SUCH
CHILD IN THE EMPIRE STATE COLLEGE SAVINGS PROGRAM AS A PARTICIPANT OF
SUCH PROGRAM. IN ORDER TO ENROLL A CHILD WHO IS LESS THAN THIRTEEN YEARS
OF AGE AS A PARTICIPANT IN THE EMPIRE STATE COLLEGE SAVINGS PROGRAM,
SUCH CHILD, OR A CONTRIBUTOR ON SUCH CHILD'S BEHALF, SHALL PURCHASE ALL
SUCH PAST CONTRIBUTIONS PURSUANT TO SECTION SEVENTEEN HUNDRED FIFTY-G OF
THIS TITLE AS ARE NECESSARY TO REPLACE ALL CONTRIBUTIONS THAT WOULD HAVE
BEEN MADE IF SUCH CHILD HAD BEEN ENROLLED ON OR BEFORE SUCH CHILD'S
SIXTH BIRTHDAY, AND THEREAFTER CONTRIBUTIONS ON BEHALF OF SUCH CHILD
SHALL BE ANNUALLY MADE TO THE EMPIRE STATE COLLEGE SAVINGS PROGRAM
PURSUANT TO SECTION SEVENTEEN HUNDRED FIFTY-F OF THIS TITLE.
S 1750-F. CONTRIBUTIONS. IN ORDER FOR PARTICIPANTS TO RECEIVE PROGRAM
BENEFITS, THE EMPIRE STATE COLLEGE SAVINGS AUTHORITY BOARD SHALL REQUIRE
ANNUAL CONTRIBUTIONS TO BE MADE ON BEHALF OF SUCH PARTICIPANTS TO THE
EMPIRE STATE COLLEGE SAVINGS PROGRAM FOR DEPOSIT BY THE AUTHORITY IN THE
EMPIRE STATE COLLEGE SAVINGS PROGRAM ACCOUNT. THE GOVERNING BOARD OF
S. 3506 5
THE AUTHORITY SHALL DETERMINE THE TIME AND SCHEDULE FOR THE MAKING OF
ANNUAL CONTRIBUTIONS BY CONTRIBUTORS ON BEHALF OF PARTICIPANTS. SUCH
ANNUAL CONTRIBUTIONS SHALL NOT EXCEED THE AMOUNT OF ONE-QUARTER OF THE
ANNUAL TUITION FOR A STATE UNIVERSITY OF NEW YORK AT THE TIME SUCH
CONTRIBUTION IS MADE. CONTRIBUTIONS SHALL BE MADE ON BEHALF OF PARTIC-
IPANTS FOR NOT LESS THAN TWELVE CONSECUTIVE YEARS COMMENCING WHEN THE
PARTICIPANT IS NOT OLDER THAN FIVE YEARS OF AGE. IF ANY ANNUAL CONTRIB-
UTION REQUIRED BY THIS SECTION IS NOT MADE ON BEHALF OF AN ENROLLED
PARTICIPANT, THEN SUCH PARTICIPANT SHALL BE DEEMED BY THE AUTHORITY TO
BE INELIGIBLE TO RECEIVE ANY PROGRAM BENEFITS UNDER THE EMPIRE STATE
COLLEGE SAVINGS PROGRAM UNTIL SUCH TIME AS SUCH PAST CONTRIBUTION IS
PURCHASED PURSUANT TO SECTION SEVENTEEN HUNDRED FIFTY-G OF THIS TITLE.
S 1750-G. PURCHASE OF PAST CONTRIBUTIONS. IN ORDER FOR PARTICIPANTS
TO RECEIVE PROGRAM BENEFITS, THE EMPIRE STATE COLLEGE SAVINGS AUTHORITY
BOARD SHALL REQUIRE ANNUAL CONTRIBUTIONS TO BE MADE ON BEHALF OF SUCH
PARTICIPANTS TO THE EMPIRE STATE COLLEGE SAVINGS PROGRAM FOR DEPOSIT BY
THE AUTHORITY IN THE EMPIRE STATE COLLEGE SAVINGS PROGRAM ACCOUNT. IF
ANY ANNUAL CONTRIBUTION REQUIRED PURSUANT TO SECTION SEVENTEEN HUNDRED
FIFTY-F OF THIS TITLE IS NOT MADE BY A PARTICIPANT, OR A CONTRIBUTOR ON
BEHALF OF THE PARTICIPANT, THEN SUCH PARTICIPANT, OR A CONTRIBUTOR ON
BEHALF OF SUCH PARTICIPANT, MAY PURCHASE THE PAST ANNUAL CONTRIBUTION
NOT SO MADE AT THE AMOUNT OF ONE-QUARTER OF THE ANNUAL TUITION FOR A
STATE UNIVERSITY OF NEW YORK AT THE TIME SUCH PURCHASE OF THE PAST
CONTRIBUTION IS MADE.
S 1750-H. BENEFITS. 1. UPON ENROLLMENT IN A STATE UNIVERSITY OF NEW
YORK A PARTICIPANT SHALL NOTIFY SUCH COLLEGE OR UNIVERSITY, IN A MANNER
DETERMINED BY THE AUTHORITY GOVERNING BOARD, OF THE FACT THAT THE
PARTICIPANT IS AN ENROLLED MEMBER IN GOOD STANDING IN THE EMPIRE STATE
COLLEGE SAVINGS PROGRAM. UPON NOTIFICATION OF THE FACT THAT SUCH PARTIC-
IPANT IS AN ENROLLED MEMBER IN GOOD STANDING IN THE EMPIRE STATE COLLEGE
SAVINGS PROGRAM, THE STATE UNIVERSITY OF NEW YORK AT WHICH SUCH PARTIC-
IPANT IS ENROLLED, SHALL SEND ALL TUITION BILLS, ASSESSED AGAINST SUCH
PARTICIPANT FOR THE NEXT FOUR YEARS TO THE EMPIRE STATE COLLEGE SAVINGS
AUTHORITY, WHEREUPON THE AUTHORITY SHALL DISBURSE FROM THE EMPIRE STATE
COLLEGE SAVINGS PROGRAM ACCOUNT AN AMOUNT EQUAL TO NINETY-FIVE PERCENT
OF THE TUITION ASSESSED AGAINST THE PARTICIPANT TO THE UNIVERSITY OR
COLLEGE AT WHICH THE PARTICIPANT IS SO ENROLLED IN FULL SATISFACTION OF
THE TUITION SO ASSESSED.
2. UPON ENROLLMENT IN A COLLEGE OR UNIVERSITY WHICH IS NOT A PART OF
THE STATE UNIVERSITY OF NEW YORK, A PARTICIPANT SHALL NOTIFY SUCH
PRIVATE COLLEGE OR UNIVERSITY, IN A MANNER DETERMINED BY SUCH COLLEGE OR
UNIVERSITY, OF THE FACT THAT THE PARTICIPANT IS AN ENROLLED MEMBER IN
GOOD STANDING IN THE EMPIRE STATE COLLEGE SAVINGS PROGRAM. UPON NOTIFI-
CATION OF THE FACT THAT SUCH PARTICIPANT IS AN ENROLLED MEMBER IN GOOD
STANDING IN THE EMPIRE STATE COLLEGE SAVINGS PROGRAM, THE PARTICIPANT OR
THE COLLEGE OR UNIVERSITY AT WHICH SUCH PARTICIPANT IS ENROLLED, SHALL
SEND ALL TUITION BILLS, ASSESSED AGAINST SUCH PARTICIPANT FOR THE NEXT
FOUR YEARS TO THE EMPIRE STATE COLLEGE SAVINGS AUTHORITY, WHEREUPON THE
AUTHORITY SHALL DISBURSE FROM THE EMPIRE STATE COLLEGE SAVINGS PROGRAM
ACCOUNT AN AMOUNT EQUAL TO NINETY-FIVE PERCENT OF THE TUITION ASSESSED
AGAINST A STUDENT ENROLLED AT THE STATE UNIVERSITY OF NEW YORK AT ALBA-
NY, OR THE TUITION ASSESSED AGAINST THE PARTICIPANT BY SUCH PRIVATE
COLLEGE OR UNIVERSITY, WHICHEVER IS LESS, AND SHALL FORWARD SUCH AMOUNT
TO THE COLLEGE OR UNIVERSITY AT WHICH THE PARTICIPANT IS SO ENROLLED. AT
THE TIME OF THE FORWARDING OF SUCH FUNDS TO SUCH COLLEGE OR UNIVERSITY,
THE EMPIRE STATE COLLEGE SAVINGS AUTHORITY SHALL FORWARD A COPY OF THE
S. 3506 6
PAYMENT RECORDS TO SUCH COLLEGE OR UNIVERSITY TO THE PARTICIPANT FOR
THEIR RECORDS.
S 1750-I. RETURN OF MONIES. CONTRIBUTIONS MADE ON BEHALF OF ANY
PARTICIPANT MAY BE RETURNED BY THE EMPIRE STATE COLLEGE SAVINGS AUTHORI-
TY FROM THE EMPIRE STATE COLLEGE SAVINGS PROGRAM ACCOUNT TO THE CONTRIB-
UTOR WHO MADE SUCH CONTRIBUTION, UPON A MAJORITY VOTE OF THE AUTHORITY
GOVERNING BOARD, IF SUCH BOARD FINDS THAT SUCH CONTRIBUTOR, OR THE
PARTICIPANT FOR WHICH THE CONTRIBUTIONS WERE MADE, HAS A PHYSICAL,
MENTAL, OR FINANCIAL DISABILITY, AS DEFINED PURSUANT TO A POLICY ESTAB-
LISHED BY THE GOVERNING BOARD OF THE AUTHORITY. SUCH RETURN PAYMENT
SHALL BE MADE BY THE AUTHORITY FROM THE EMPIRE STATE COLLEGE SAVINGS
PROGRAM ACCOUNT AND SHALL CONSTITUTE ONLY THE PRINCIPAL OF THE ORIGINAL
CONTRIBUTION SO MADE AND SHALL NOT INCLUDE ANY INTEREST OR INVESTMENT
INCOME THE ACCOUNT EARNED ON SUCH CONTRIBUTION. IN THE EVENT THAT THE
AUTHORITY RETURNS A CONTRIBUTION TO A CONTRIBUTOR OR PARTICIPANT, THE
AUTHORITY SHALL NOTIFY THE PARTICIPANT AND THE PARTICIPANT'S LEGAL GUAR-
DIAN, AND WITHIN SIXTY DAYS OF THE RECEIPT OF SUCH NOTIFICATION BY THE
PARTICIPANT AND THE PARTICIPANT'S LEGAL GUARDIAN, THE PARTICIPANT, OR A
DIFFERENT CONTRIBUTOR ON BEHALF OF THE PARTICIPANT, MAY REPLACE THE
AMOUNT OF THE RETURNED CONTRIBUTION WITHOUT PENALTY INTO THE EMPIRE
STATE COLLEGE SAVINGS PROGRAM.
S 1750-J. TAX IMPLICATIONS. CONTRIBUTIONS, INTEREST ON CONTRIBUTIONS,
INVESTMENT GROWTH IN THE EMPIRE STATE COLLEGE SAVINGS PROGRAM ACCOUNT
AND PROGRAM BENEFITS SHALL NOT BE DEEMED INCOME TO EITHER THE CONTRIBU-
TOR OR THE PARTICIPANT OF THE EMPIRE STATE COLLEGE SAVINGS PROGRAM NOR
SHALL IT BE DEEMED SUBJECT TO STATE OR LOCAL TAXES.
S 2. This act shall take effect immediately, provided that the Empire
State college savings authority shall assume operations on the first of
January next succeeding the date on which it shall have become a law.