Blankenbush, Castorina, Errigo, Giglio, Morinello, Miller B, Finch
 
MLTSPNSR
Barclay
 
Add §695-h, Ed L
 
Relates to creating the college savings incentive program, which provides up to a 10% matching grant from the general fund to the beneficiary of a family tuition account.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6121
SPONSOR: Oaks (MS)
 
TITLE OF BILL: An act to amend the education law, in relation to
creating the college savings incentive program
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would encourage college savings by providing a 10% savings
match, up to a maximum of the one year TAP maximum
 
SUMMARY OF SPECIFIC PROVISIONS:
This bill amends the Education law by adding a new section 695-h
1. Allows for a matching grant up to 10% of the funds in a 529 college
savings plan
2. Limits any award to the one year TAP maximum, and requires that the
recipient be attending a qualified institution in New York State
3. Specifies that these funds would be allocated in eight equal
payments, one each semester
 
JUSTIFICATION:
The middle class struggles to save resources for college, yet often does
not qualify for much financial aid. Students are frequently forced to
take out large loans to pay for school, which result in large payments
and limited discretionary income upon graduation. The legislation seeks
to provide incentive for families to save money for college by offering
a 10% match of the savings they are able to accrue in a 529 account. The
money could only be used for schools located within the state of New
York.
 
PRIOR LEGISLATIVE HISTORY:
A7249 of 2016-Held for consideration in Higher Education
 
FISCAL IMPLICATIONS:
To be determined
 
EFFECTIVE DATE:
Immediately
STATE OF NEW YORK
________________________________________________________________________
6121
2017-2018 Regular Sessions
IN ASSEMBLY
February 23, 2017
___________
Introduced by M. of A. OAKS, BLANKENBUSH, CASTORINA, ERRIGO, GIGLIO,
GRAF -- Multi-Sponsored by -- M. of A. BARCLAY -- read once and
referred to the Committee on Higher Education
AN ACT to amend the education law, in relation to creating the college
savings incentive program
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 695-h
2 to read as follows:
3 § 695-h. College savings incentive program. 1. Family tuition accounts
4 established pursuant to the provisions of this article shall be eligible
5 for a matching grant of up to ten percent from the general fund, as
6 defined in section seventy-two of the state finance law. If two or more
7 accounts are held in a single beneficiary's name, the values shall be
8 combined in order to determine such matching grant amount.
9 2. Such matching grant shall not exceed the maximum tuition assistance
10 program annual award amount, as defined in section six hundred sixty-
11 seven of this chapter, at the time the beneficiary enrolls into an
12 accredited two year or four year program at a qualified institution. For
13 the purposes of this section a qualified institution shall include a
14 state university of New York or a city university of New York or private
15 college or university in New York.
16 3. Such matching grant shall be made in eight equal payments over the
17 course of the beneficiary's four year enrollment at a qualified institu-
18 tion at the beginning of each semester.
19 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08431-01-7