S T A T E O F N E W Y O R K
________________________________________________________________________
4798
2023-2024 Regular Sessions
I N S E N A T E
February 14, 2023
___________
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.
LBD07136-01-3
S. 4798 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. 4798 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, 2023.