S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9700
 
                             I N  S E N A T E
 
                               May 22, 2024
                                ___________
 
 Introduced  by Sen. STAVISKY -- (at request of the State Comptroller) --
   read twice and ordered printed, and when printed to  be  committed  to
   the Committee on Higher Education
 
 AN  ACT  to  amend  the education law, in relation to the New York state
   college choice tuition savings program
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  2  of section 695-c of the education law, as
 added by chapter 546 of the laws of 1997, is amended to read as follows:
   2. In furtherance of such implementation the memorandum of understand-
 ing shall address the authority and responsibility  of  the  comptroller
 and the corporation to:
   a.  develop  and implement the program in a manner consistent with the
 provisions of this article through rules and regulations established  in
 accordance with the state administrative procedure act;
   b.  engage the services of consultants on a contract basis for render-
 ing professional and technical assistance and advice;
   c.   seek rulings and other guidance from the United States Department
 of THE Treasury  and  the  Internal  Revenue  Service  relating  to  the
 program;
   d.    make changes to the program required for the participants in the
 program to obtain the federal income tax benefits or treatment  provided
 by  section 529 of the Internal Revenue Code of 1986, as amended, or any
 similar successor legislation;
   e.  charge, impose, and collect administrative fees and service charg-
 es in connection with any agreement, contract or transaction relating to
 the program;
   f. develop marketing plans and promotion material;
   g. establish the methods by which the funds held in such  accounts  be
 [dispersed] DISBURSED;
   h.  establish  the method by which funds shall be allocated to pay for
 administrative costs AND, TO THE EXTENT THE COMPTROLLER AND  THE  CORPO-
 RATION  JOINTLY  DETERMINE  THAT  FUNDS  ARE  AVAILABLE AFTER PAYMENT OF
 ADMINISTRATIVE COSTS, TO  SUPPORT  SCHOLARSHIP  AND  GRANT  PROGRAMS  IN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14506-02-4
 S. 9700                             2
 
 FURTHERANCE  OF  PROGRAM PURPOSES, IN EACH CASE IN ACCORDANCE WITH RULES
 AND REGULATIONS PROMULGATED BY THE COMPTROLLER IN CONSULTATION WITH  THE
 CORPORATION; [and]
   i.  DEVELOP  AND IMPLEMENT SCHOLARSHIP AND GRANT PROGRAMS AS THE COMP-
 TROLLER, IN CONSULTATION WITH THE CORPORATION, MAY DEEM  APPROPRIATE  TO
 CARRY OUT THE PURPOSES OF THIS ARTICLE; AND
   J.  do  all  things  necessary and proper to carry out the purposes of
 this article.
   § 2. Subdivision 12 of section 695-e of the education law, as  amended
 by chapter 593 of the laws of 2003, is amended to read as follows:
   12.  a.  A  STATE  OR  local  government  or organization described in
 section 501(c)(3) of the Internal Revenue Code of 1986, as amended,  may
 open  and  become the account owner of [an account] ONE OR MORE ACCOUNTS
 to fund scholarships OR GRANTS for persons whose identity  IS  KNOWN  OR
 will be determined upon disbursement.
   b.  In  the case of any account opened pursuant to paragraph a of this
 subdivision the requirement set forth in subdivision two of this section
 that a designated beneficiary be designated when an  account  is  opened
 shall  not  apply  and  each individual who receives an interest in such
 account as a scholarship OR GRANT shall be treated as a designated bene-
 ficiary with respect to such interest.
   § 3. This act shall take effect immediately.