S T A T E O F N E W Y O R K
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11333
I N A S S E M B L Y
May 11, 2026
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Introduced by COMMITTEE ON RULES -- (at request of M. of A. Blumencranz)
-- read once and referred to the Committee on Higher Education
AN ACT to amend the education law, in relation to establishing the
empire prepaid college program to provide families with affordable,
guaranteed tuition plans for New York state public postsecondary
institutions; and to amend the state finance law, in relation to
establishing the empire prepaid college fund
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "New York state prepaid college access and affordability act".
§ 2. Legislative findings and intent. The Legislature finds that the
rising cost of higher education places an increasing burden on New York
families and deters many qualified students from pursuing a college
degree at our state colleges and universities. New York currently oper-
ates 529 college savings accounts, but these plans do not guarantee
tuition coverage or protect families from future tuition increases.
The intent of this legislation is to create an empire prepaid college
program, enabling families to purchase tuition and housing credits at
today's rates for future use at in-state public colleges and universi-
ties, ensuring predictability, affordability, and access to higher
education across the Empire State.
§ 3. The education law is amended by adding a new article 129-C to
read as follows:
ARTICLE 129-C
EMPIRE PREPAID COLLEGE PROGRAM
SECTION 6450-A. ESTABLISHMENT OF THE PROGRAM.
6450-B. EMPIRE PREPAID COLLEGE BOARD.
6450-C. PREPAID TUITION AND HOUSING PLANS.
6450-D. TRANSFERABILITY AND PORTABILITY.
6450-E. SCHOLARSHIPS AND UNUSED FUNDS.
6450-F. STATE PLEDGE.
6450-G. CONFIDENTIALITY.
6450-H. REFUNDS AND TERMINATION.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15764-01-6
A. 11333 2
6450-I. TAX STATUS.
6450-J. IMPLEMENTATION AND RULES.
6450-K. ESTABLISHMENT OF THE EMPIRE PREPAID PROMISE FUND.
§ 6450-A. ESTABLISHMENT OF THE PROGRAM. THERE IS HEREBY ESTABLISHED
THE EMPIRE PREPAID COLLEGE PROGRAM (HEREAFTER REFERRED TO IN THIS ARTI-
CLE AS "THE PROGRAM"), ADMINISTERED BY THE EMPIRE PREPAID COLLEGE BOARD,
TO ENABLE ADVANCE PAYMENTS OF TUITION AND DORMITORY FEES FOR ATTENDANCE
AT STATE UNIVERSITY OF NEW YORK (SUNY), CITY UNIVERSITY OF NEW YORK
(CUNY), AND COMMUNITY COLLEGES.
§ 6450-B. EMPIRE PREPAID COLLEGE BOARD. 1. AN EMPIRE PREPAID COLLEGE
BOARD REFERRED TO AS THE "BOARD" IN THIS ARTICLE, IS HEREBY CREATED AS A
PUBLIC CORPORATE ENTITY WITHIN THE HIGHER EDUCATION SERVICES CORPORATION
(HESC).
2. THE BOARD SHALL CONSIST OF:
(A) THE STATE COMPTROLLER, OR THEIR DESIGNEE;
(B) THE COMMISSIONER, OR THEIR DESIGNEE;
(C) THE CHANCELLOR OF THE STATE UNIVERSITY OF NEW YORK, OR THEIR
DESIGNEE;
(D) THE CHANCELLOR OF THE CITY UNIVERSITY OF NEW YORK, OR THEIR DESIG-
NEE;
(E) TWO MEMBERS APPOINTED BY THE GOVERNOR WITH EXPERTISE IN FINANCE OR
HIGHER EDUCATION;
(F) ONE MEMBER APPOINTED BY THE SPEAKER OF THE ASSEMBLY;
(G) ONE MEMBER APPOINTED BY THE MINORITY LEADER OF THE ASSEMBLY;
(H) ONE MEMBER APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE;
(I) ONE MEMBER APPOINTED BY THE MINORITY LEADER OF THE SENATE; AND
(J) ONE MEMBER APPOINTED BY THE COMMISSIONER WITH EXPERTISE IN COMMU-
NITY COLLEGE EDUCATION.
3. THE BOARD SHALL HAVE AUTHORITY TO:
(A) DEVELOP AND OFFER PREPAID TUITION AND HOUSING CONTRACTS;
(B) MANAGE AN ACTUARIALLY EMPIRE PREPAID COLLEGE FUND;
(C) PARTNER WITH PRIVATE, NONPROFIT, OR COMMUNITY ORGANIZATIONS FOR
SCHOLARSHIP MATCHING; AND
(D) ENSURE PLAN PORTABILITY TO PRIVATE OR OUT-OF-STATE INSTITUTIONS
UNDER IRS SECTION 529.
§ 6450-C. PREPAID TUITION AND HOUSING PLANS. 1. THE BOARD SHALL OFFER:
(A) A COMMUNITY COLLEGE PLAN, COVERING UP TO SIXTY CREDIT HOURS OR THE
ASSOCIATE DEGREE EQUIVALENT;
(B) A UNIVERSITY PLAN, COVERING UP TO ONE HUNDRED TWENTY CREDIT HOURS
OR THE BACHELOR'S DEGREE EQUIVALENT; AND
(C) AN OPTIONAL DORMITORY HOUSING PLAN, COVERING UP TO EIGHT SEMESTERS
OF ON-CAMPUS RESIDENCE.
2. PLANS MAY BE PURCHASED IN FULL, IN INSTALLMENTS, OR THROUGH PAYROLL
DEDUCTION AGREEMENTS.
3. PLANS SHALL GUARANTEE TUITION AND MANDATORY FEES AT THE RATE IN
EFFECT AT THE TIME OF PURCHASE, REGARDLESS OF FUTURE COST INCREASES.
§ 6450-D. TRANSFERABILITY AND PORTABILITY. 1. BENEFITS MAY BE TRANS-
FERRED AMONG QUALIFIED FAMILY MEMBERS.
2. BENEFITS MAY BE USED AT ANY ACCREDITED INSTITUTION ELIGIBLE UNDER
SECTION 529 OF THE INTERNAL REVENUE CODE, UP TO THE EQUIVALENT VALUE OF
THE STATE RATE.
§ 6450-E. SCHOLARSHIPS AND UNUSED FUNDS. 1. A PORTION OF UNCLAIMED OR
UNUSED FUNDS MAY BE REDIRECTED BY THE BOARD TO ESTABLISH MERIT- AND
NEED-BASED SCHOLARSHIPS UNDER THE EMPIRE PREPAID PROMISE FUND.
2. SUCH FUNDS MAY BE MATCHED BY PRIVATE DONATIONS OR NONPROFIT ORGAN-
IZATIONS FOR MAXIMUM IMPACT.
A. 11333 3
§ 6450-F. STATE PLEDGE. THE STATE PLEDGES TO FULFILL THE FINANCIAL
OBLIGATIONS OF THE PROGRAM IF THE PROGRAM'S ASSETS ARE INSUFFICIENT TO
MEET CONTRACTUAL OBLIGATIONS. THE LEGISLATURE SHALL APPROPRIATE FUNDS TO
HONOR ANY AND ALL PREPAID COMMITMENTS.
§ 6450-G. CONFIDENTIALITY. PURCHASER AND BENEFICIARY INFORMATION SHALL
BE KEPT CONFIDENTIAL AND EXEMPT FROM FREEDOM OF INFORMATION REQUESTS,
EXCEPT FOR PURPOSES OF ENROLLMENT VERIFICATION BY STATE UNIVERSITY OF
NEW YORK OR THE CITY UNIVERSITY OF NEW YORK INSTITUTIONS.
§ 6450-H. REFUNDS AND TERMINATION. 1. REFUNDS SHALL BE AVAILABLE UNDER
THE FOLLOWING CIRCUMSTANCES:
(A) DEATH OR DISABILITY OF BENEFICIARY;
(B) RECEIPT OF SCHOLARSHIP COVERING THE SAME BENEFITS;
(C) DECISION NOT TO ENROLL IN HIGHER EDUCATION; AND
(D) NON-COMPLETION OF THE DEGREE PROGRAM.
2. THE REFUND AMOUNT SHALL NOT EXCEED THE AMOUNT CONTRIBUTED.
§ 6450-I. TAX STATUS. ALL PREPAID CONTRACTS UNDER THIS ARTICLE SHALL
COMPLY WITH SECTION 529 OF THE UNITED STATES INTERNAL REVENUE CODE.
CONTRIBUTIONS SHALL BE ELIGIBLE FOR EXISTING NEW YORK 529 TAX BENEFITS.
§ 6450-J. IMPLEMENTATION AND RULES. THE BOARD SHALL ADOPT ALL NECES-
SARY RULES AND REGULATIONS TO IMPLEMENT THIS ARTICLE WITHIN ONE YEAR OF
THE EFFECTIVE DATE OF THIS ARTICLE.
§ 6450-K. ESTABLISHMENT OF THE EMPIRE PREPAID PROMISE FUND. 1. THERE
IS HEREBY ESTABLISHED THE EMPIRE PREPAID PROMISE FUND, TO BE USED EXCLU-
SIVELY TO SUPPORT SCHOLARSHIPS AND EDUCATIONAL ASSISTANCE FOR ECONOM-
ICALLY DISADVANTAGED STUDENTS ACROSS NEW YORK STATE.
2. THE FUND SHALL BE ADMINISTERED BY THE EMPIRE PREPAID COLLEGE BOARD
IN PARTNERSHIP WITH THE HIGHER EDUCATION SERVICES CORPORATION (HESC),
WHICH SHALL OVERSEE THE DISTRIBUTION OF SCHOLARSHIP FUNDS TO ELIGIBLE
STUDENTS OR NONPROFIT SCHOLARSHIP PROVIDERS.
3. THE EMPIRE PREPAID PROMISE FUND SHALL BE CAPITALIZED BY THE FOLLOW-
ING SOURCES:
(A) UNCLAIMED, UNUSED, OR FORFEITED FUNDS FROM TERMINATED ADVANCE
PAYMENT CONTRACTS AFTER THE PERIOD OF ELIGIBILITY HAS EXPIRED, AS DETER-
MINED BY THE BOARD;
(B) VOLUNTARY DONATIONS FROM INDIVIDUALS, CORPORATIONS, PHILANTHROPIC
ORGANIZATIONS, AND OTHER PRIVATE ENTITIES;
(C) MATCHING CONTRIBUTIONS FROM NONPROFIT ORGANIZATIONS APPROVED BY
THE BOARD THAT OPERATE SCHOLARSHIP PROGRAMS CONSISTENT WITH THE FUND'S
MISSION; AND
(D) LEGISLATIVE APPROPRIATIONS, AS MAY BE AUTHORIZED FROM TIME TO
TIME.
4. SCHOLARSHIPS ISSUED THROUGH THE FUND SHALL BE:
(A) RESERVED FOR STUDENTS WHO MEET FINANCIAL NEED CRITERIA AS DETER-
MINED BY THE HIGHER EDUCATION SERVICES CORPORATION OR THE ADMINISTERING
NONPROFIT ENTITY;
(B) APPLIED TOWARD PREPAID TUITION AND HOUSING PLANS UNDER THE NEW
YORK PREPAID COLLEGE PROGRAM;
(C) AWARDED THROUGH BOARD-APPROVED NONPROFIT ORGANIZATIONS OPERATING
501(C)(3) SCHOLARSHIP PROGRAMS OR DIRECTLY BY THE BOARD;
(D) PORTABLE TO ANY SUNY, CUNY, OR NEW YORK STATE COMMUNITY COLLEGE.
5. (A) THE BOARD SHALL ISSUE AN ANNUAL REPORT DETAILING THE AMOUNT OF
FUNDS COLLECTED, AWARDED, CARRIED OVER, AND ANTICIPATED FOR THE FOLLOW-
ING FISCAL YEAR.
(B) THE FUND SHALL BE SUBJECT TO ANNUAL AUDIT BY THE STATE COMP-
TROLLER.
A. 11333 4
(C) ALL FUNDS IN THE EMPIRE PREPAID PROMISE FUND SHALL BE HELD IN
TRUST AND SHALL NOT REVERT TO THE GENERAL FUND OF THE STATE.
6. IN THE EVENT THE EMPIRE PREPAID COLLEGE PROGRAM IS DISCONTINUED,
ALL REMAINING ASSETS IN THE EMPIRE PREPAID PROMISE FUND SHALL BE USED TO
FULFILL EXISTING SCHOLARSHIP OBLIGATIONS OR TRANSFERRED TO ANOTHER
STATE-OPERATED COLLEGE AFFORDABILITY OR FINANCIAL AID PROGRAM, AS DETER-
MINED BY THE LEGISLATURE.
§ 4. The state finance law is amended by adding a new section 99-uu to
read as follows:
§ 99-UU. EMPIRE PREPAID PROMISE FUND. 1. THERE IS HEREBY ESTABLISHED
IN THE JOINT CUSTODY OF THE COMMISSIONER OF EDUCATION AND THE COMP-
TROLLER, A SPECIAL FUND TO BE KNOWN AS THE "EMPIRE PREPAID PROMISE
FUND".
2. SUCH FUND SHALL CONSIST OF MONIES FROM THE REVENUE RAISED PURSUANT
TO SUBDIVISION THREE OF SECTION SIXTY-FOUR HUNDRED FIFTY-K OF THE EDUCA-
TION LAW.
3. MONIES OF THE FUND SHALL BE EXPENDED TO BE USED EXCLUSIVELY TO
SUPPORT SCHOLARSHIPS AND EDUCATIONAL ASSISTANCE FOR ECONOMICALLY DISAD-
VANTAGED STUDENTS ACROSS NEW YORK STATE.
4. MONIES SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF
THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
OF EDUCATION.
§ 5. Severability. If any provision of this act, or any application of
any provision of this act, is held to be invalid, that shall not affect
the validity or effectiveness of any other provision of this act, or of
any other application of any provision of this act, which can be given
effect without that provision or application; and to that end, the
provisions and applications of this act are severable.
§ 6. This act shall take effect immediately.