New York S 2495: Relates to a state pre-paid tuition plan

Bill Text

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S02495 Summary:

BILL NOS02495 

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SAME ASNo Same As

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SPONSORGOUNARDES

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COSPNSR

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MLTSPNSR

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Add §355-f, Ed L; add §78-c, St Fin L; amd §5205, CPLR; amd §612, Tax L

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Establishes the New York state pre-paid tuition plan by which a person may contribute to an account for the pre-payment of college tuition, tax free.

Go to top S02495 Actions:

BILL NOS02495 

&nbsp

01/21/2025REFERRED TO HIGHER EDUCATION

01/07/2026REFERRED TO HIGHER EDUCATION

Go to topS02495 Committee&nbspVotes:

Go to topS02495 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS02495 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 2495

 2025-2026 Regular Sessions

 IN SENATE

 January 21, 2025
 ___________

 Introduced by Sen. GOUNARDES -- 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 state finance law, the civil
 practice law and rules and the tax law, in relation to establishing
 the New York state pre-paid tuition plan

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The education law is amended by adding a new section 355-f
 2 to read as follows:
 3 § 355-f. "New York state pre-paid tuition plan". 1. Definitions. For
 4 the purposes of this section, the following terms shall have the follow-
 5 ing meanings:
 6 a. "Account" or "pre-paid tuition account" shall mean an individual
 7 pre-paid tuition account established in accordance with the provisions
 8 of this section.
 9 b. "Account owner" shall mean a person who enters into a pre-paid
 10 tuition agreement pursuant to the provisions of this article, including
 11 a person who enters into such an agreement as a fiduciary or agent on
 12 behalf of a trust, estate, partnership, association, company or corpo-
 13 ration. The account owner may also be the designated beneficiary of the
 14 account.
 15 c. "City university" shall mean the city university of New York.
 16 d. "Comptroller" shall mean the state comptroller.
 17 e. "Designated beneficiary" shall mean, with respect to an account or
 18 accounts, the individual designated as the individual whose tuition
 19 expenses are expected to be paid from the account or accounts.
 20 f. "Eligible educational institution" shall mean any institution of
 21 higher education defined as an eligible educational institution in
 22 section 529(e)(5) of the Internal Revenue Code of 1986, as amended.
 23 g. "Financial organization" shall mean an organization authorized to
 24 do business in the state and (i) which is an authorized fiduciary to act

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD03784-01-5

 S. 2495 2

 1 as a trustee pursuant to the provisions of an act of congress entitled
 2 "Employee Retirement Income Security Act of 1974" as such provisions may
 3 be amended from time to time, or an insurance company; and (ii) (A) is
 4 licensed or chartered by the department of financial services, (B) is
 5 chartered by an agency of the federal government, (C) is subject to the
 6 jurisdiction and regulation of the securities and exchange commission of
 7 the federal government, or (D) is any other entity otherwise authorized
 8 to act in this state as a trustee pursuant to the provisions of an act
 9 of congress entitled "Employee Retirement Income Security Act of 1974"
 10 as such provisions may be amended from time to time.
 11 h. "Member of family" shall mean a family member as defined in section
 12 529 of the Internal Revenue Code of 1986, as amended.
 13 i. "Nonqualified withdrawal" shall mean a withdrawal from an account,
 14 but shall not mean:
 15 (i) a qualified withdrawal; (ii) a withdrawal made as the result of
 16 the death or disability of the designated beneficiary of an account; or
 17 (iii) a withdrawal made on the account of a scholarship.
 18 j. "Plan" shall mean the New York state pre-paid tuition plan estab-
 19 lished pursuant to this section.
 20 k. "Plan manager" shall mean a financial organization selected by the
 21 comptroller to act as a depository and manager of the plan.
 22 l. "Qualified withdrawa