NY State Senate Bill 2021-S4605

Senate Bill S4605

2021-2022 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Senate Committee Higher Education Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to higher education
Feb 08, 2021	referred to higher education

2021-S4605 (ACTIVE) - Details

See Assembly Version of this Bill:: A6795
Current Committee:: Senate Higher Education
Law Section:: Education Law
Laws Affected:: Amd Art 14 Art Head, §§695, 695-a, 695-b & 695-d, Ed L; amd §§612 & 658, Tax L; amd §78, St Fin L; amd §5205, CPLR
Versions Introduced in Other Legislative Sessions:: 2017-2018: A10115
2019-2020: A8192
2023-2024: S4798, A2427

2021-S4605 (ACTIVE) - Summary

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

2021-S4605 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4605

SPONSOR: PALUMBO
 
TITLE OF BILL:

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

 
PURPOSE:

To require the New York state college choice tuition savings program to
also apply to elementary and secondary schools.

 
SUMMARY OF PROVISIONS:

Sections 1 through 9 establish the "New York state (college choice)
tuition savings program", and amends the education law, the tax law, the
state finance law and the civil practice law and rules to include
elementary and secondary schools in the "New York (college choice)

tuition savings program".

Section 10 provides the effective date.

 
JUSTIFICATION:

Tuition costs continue to rise from the elementary to collegiate level.
New York's expansion of federal 529 saving plans enable families to
invest in their child's future education, providing tax-free withdrawals
and deductible contributions to these accounts.  With the passage of the
2017 Tax Cut and Jobs Act, the federal government expanded the use of
the 529 saving account to include elementary and secondary school
expenses. As hardworking New Yorkers plan for their children to attend
public and private elementary secondary schools and colleges throughout
the state, the rising costs continue to strain their ability to afford
these institutions.  Expanding 529 saving plans to elementary and
secondary education would affirm New York State's commitment to families
seeking a choice in their child's future education.

 
LEGISLATIVE HISTORY:

2020 A.8192; 2015 A.10115.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2021.

2021-S4605 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4605
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 8, 2021
                                ___________
 
 Introduced  by  Sen. PALUMBO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Higher 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:
 
   Section  1.  The article heading of article 14-A of the education law,
 as added by chapter 546 of the laws of  1997,  is  amended  to  read  as
 follows:
                               NEW YORK STATE
                 [COLLEGE CHOICE] TUITION SAVINGS PROGRAM
   §  2. Section 695 of the education law, as added by chapter 546 of the
 laws of 1997, is amended to read as follows:
   § 695. Program established. There is hereby established  the  [college
 choice]  tuition savings program and such program shall be known and may
 be cited as  the  "New  York  state  [college  choice]  tuition  savings
 program".
   §  3. Subdivision 2 of section 695-a of the education law, as added by
 chapter 546 of the laws of 1997, is amended to read as follows:
   2. Attract students to public and  private  ELEMENTARY  AND  SECONDARY
 SCHOOLS, AND colleges and universities within the state.
   §  4. Subdivision 7 of section 695-b of the education law, as added by
 chapter 546 of the laws of 1997, is amended to read as follows:
   7. "Program" shall mean the New York state  [college  choice]  tuition
 savings program established pursuant to this article.
   §  5.  Paragraph  c of subdivision 2 of section 695-d of the education
 law, as added by chapter 546 of the laws of 1997, is amended to read  as
 follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08153-01-1

 S. 4605                             2
 
   c.  The ability of the investment instrument to track increasing costs
 of [higher] education;
   §  6. Paragraphs 32 and 33 of subsection (c) of section 612 of the tax
 law, paragraph 32 as amended by chapter 81 of the laws of 2008 and para-
 graph 33 as added by chapter 546 of the laws of  1997,  are  amended  to
 read as follows:
   (32) Contributions made during the taxable year by an account owner to
 one or more family tuition accounts established under the New York state
 [college  choice]  tuition  savings  program  provided for under article
 fourteen-A of the education law, to the extent not deductible or  eligi-
 ble  for  credit for federal income tax purposes, provided, however, the
 exclusion provided for in this paragraph shall not exceed five  thousand
 dollars  for an individual or head of household, and for married couples
 who file joint tax returns,  shall  not  exceed  ten  thousand  dollars;
 provided,  further,  that  such exclusion shall be available only to the
 account owner and not to any other person.
   (33) Distributions from a family tuition account established under the
 New York state [college choice] tuition  savings  program  provided  for
 under  article fourteen-A of the education law, to the extent includible
 in gross income for federal income tax purposes.
   § 7. Paragraph 3 of subsection (d) of section 658 of the tax  law,  as
 added by chapter 546 of the laws of 1997, is amended to read as follows:
   (3)  The  commissioner  may  by  regulation or instruction require the
 filing of a report annually by the comptroller or program manager of the
 New York state [college choice] tuition savings program, or their desig-
 nee, setting forth the  names  and  identification  numbers  of  account
 owners,  designated  beneficiaries  and  distributees  of family tuition
 accounts, the amounts contributed to such accounts, the amounts distrib-
 uted from such accounts and the nature of such distributions  as  quali-
 fied withdrawals or as withdrawals other than qualified withdrawals, and
 any such other information as the commissioner may require regarding the
 taxation  under this article of amounts contributed to or withdrawn from
 such accounts. The commissioner may require that any such report also be
 made to the account owner, designated beneficiary or distributee of  any
 such account.
   § 8. The section heading and subdivisions 1 and 2 of section 78 of the
 state  finance  law,  as  added  by chapter 546 of the laws of 1997, are
 amended to read as follows:
   New York state [college choice] tuition savings  program  trust  fund.
 1.  There  is  hereby established in the sole custody of the state comp-
 troller a special fund to be  known  as  the  New  York  state  [college
 choice]  tuition savings program trust fund. All payments from such fund
 shall be made in accordance with article fourteen-A of the education law
 and the memorandum of understanding entered into pursuant thereto on the
 audit of the state comptroller.
   2. The fund shall be a trust fund and shall consist of a trust account
 and an operating  account.  The  trust  account  shall  include  amounts
 received  by the New York state [college choice] tuition savings program
 pursuant to tuition savings agreements,  administrative  charges,  fees,
 and  all  other  amounts received by the program from other sources, and
 interest and investment income earned by the trust fund. The comptroller
 shall, from time to time, make transfers from the trust account  to  the
 operating account for the immediate payment of obligations under tuition
 savings  agreements,  operating expenses and administrative costs of the
 New York state [college choice] tuition savings program.  Administrative
 costs  shall be paid out of the operating account according to the terms

 S. 4605                             3
 
 and conditions established pursuant to the  provisions  of  section  six
 hundred ninety-five-c of the education law.
   §  9.  The opening paragraph of subdivision (j) of section 5205 of the
 civil practice law and rules, as added by chapter 546  of  the  laws  of
 1997, is amended to read as follows:
   Exemption  for New York state [college choice] tuition savings program
 trust fund payment monies. Monies in  an  account  created  pursuant  to
 article  fourteen-A  of the education law are exempt from application to
 the satisfaction of a money judgment as follows:
   § 10. This act shall take effect immediately and shall apply to  taxa-
 ble years beginning on or after January 1, 2021.

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