S T A T E   O F   N E W   Y O R K
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                                  6516

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             March 26, 2015
                               ___________

Introduced  by M. of A. GUNTHER -- read once and referred to the Commit-
  tee on Banks

AN ACT to amend the banking law and the tax law, in relation  to  estab-
  lishing the NY ABLE act

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. This act shall be known and may be cited as the  "New  York
achieving a better life experience (NY ABLE) savings account act".
  S  2.  Legislative  intent.  The  legislative intent of this act is to
encourage and assist individuals and families in  saving  private  funds
for  the purpose of supporting individuals with disabilities to maintain
health, independence and quality of life; and to provide secure  funding
for  disability  related  expenses on behalf of designated beneficiaries
with disabilities that  will  supplement,  but  not  supplant,  benefits
provided through existing sources.
  S 3. The banking law is amended by adding a new article 2-D to read as
follows:
                               ARTICLE 2-D
     NEW YORK ACHIEVING A BETTER LIFE EXPERIENCE SAVINGS ACCOUNT ACT
SECTION 90.   SHORT TITLE.
        90-A. DEFINITIONS.
        90-B. ESTABLISHMENT OF PLAN.
        90-C. NY ABLE ACCOUNT ADVISORY COMMITTEE.
        90-D. PROGRAM REQUIREMENTS.
        90-E. DISTRIBUTION REQUIREMENTS.
        90-F. POWERS OF THE COMPTROLLER.
  S 90. SHORT TITLE.
  THIS  ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE "NEW YORK ACHIEV-
ING A BETTER LIFE EXPERIENCE (NY ABLE) SAVINGS ACCOUNT ACT".
  S 90-A. DEFINITIONS.
  AS USED IN THIS ARTICLE:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10067-01-5
              

A. 6516                             2

  1. "SUPERINTENDENT" MEANS THE NEW YORK STATE SUPERINTENDENT OF  FINAN-
CIAL SERVICES.
  2.  "FINANCIAL  ORGANIZATION"  MEANS  AN ORGANIZATION AUTHORIZED TO DO
BUSINESS IN THE STATE OF NEW YORK AND (A) WHICH IS AN AUTHORIZED FIDUCI-
ARY TO ACT AS A TRUSTEE PURSUANT TO THE PROVISIONS OF AN ACT OF CONGRESS
ENTITLED "EMPLOYEE RETIREMENT INCOME  SECURITY  ACT  OF  1974"  AS  SUCH
PROVISIONS  MAY  BE  AMENDED FROM TIME TO TIME, OR AN INSURANCE COMPANY;
AND (B)(I) IS LICENSED OR CHARTERED BY THE STATE DEPARTMENT OF FINANCIAL
SERVICES, (II) IS CHARTERED BY AN  AGENCY  OF  THE  FEDERAL  GOVERNMENT,
(III)  IS  SUBJECT  TO THE JURISDICTION AND REGULATION OF THE SECURITIES
AND EXCHANGE COMMISSION OF THE FEDERAL GOVERNMENT, OR (IV) IS ANY  OTHER
ENTITY  OTHERWISE  AUTHORIZED TO ACT IN THIS STATE AS A TRUSTEE PURSUANT
TO THE PROVISIONS OF AN ACT OF CONGRESS  ENTITLED  "EMPLOYEE  RETIREMENT
INCOME SECURITY ACT OF 1974" AS SUCH PROVISIONS MAY BE AMENDED FROM TIME
TO TIME.
  3.  "ACCOUNT"  OR  "NY  ABLE ACCOUNT" SHALL MEAN AN INDIVIDUAL SAVINGS
ACCOUNT ESTABLISHED IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE.
  4. "ACCOUNT OWNER" SHALL MEAN THE DESIGNATED BENEFICIARY WHO OPENS THE
NY ABLE ACCOUNT OR OTHER PERSON WHO OPENS THE NY ABLE ACCOUNT ON  BEHALF
OF  THE  DESIGNATED  BENEFICIARY IN COMPLIANCE WITH SECTION FIVE HUNDRED
TWENTY-NINE-A.
  5. "COMPTROLLER" SHALL MEAN THE COMPTROLLER OF THE STATE OF NEW YORK.
  6. "DESIGNATED BENEFICIARY" SHALL MEAN, WITH RESPECT TO AN ACCOUNT  OR
ACCOUNTS,  THE  INDIVIDUAL  WITH  A  DISABILITY WHO IS DESIGNATED AS THE
INDIVIDUAL WHOSE QUALIFIED EXPENSES ARE EXPECTED TO  BE  PAID  FROM  THE
ACCOUNT.  THE  "DESIGNATED  BENEFICIARY"  MUST BE A RESIDENT OF NEW YORK
STATE OR A RESIDENT OF A STATE THAT: (A) DOES NOT HAVE A QUALIFIED  ABLE
PROGRAM RECOGNIZED UNDER SECTION FIVE HUNDRED TWENTY-NINE-A, AND (B) HAS
ENTERED  INTO A CONTRACT WITH NEW YORK STATE TO PROVIDE RESIDENTS OF THE
CONTRACTING STATE WITH ACCESS TO NEW YORK STATE'S ABLE PROGRAM.
  7. "QUALIFIED EXPENSES" SHALL MEAN "QUALIFIED DISABILITY EXPENSES"  AS
DEFINED UNDER SECTION FIVE HUNDRED TWENTY-NINE-A.
  8.  "QUALIFIED  WITHDRAWAL" SHALL MEAN A WITHDRAWAL FROM AN ACCOUNT TO
PAY FOR THE QUALIFIED EXPENSES OF THE DESIGNATED BENEFICIARY OF  THE  NY
ABLE ACCOUNT.
  9.  "NONQUALIFIED  WITHDRAWAL" SHALL MEAN A WITHDRAWAL FROM AN ACCOUNT
OTHER THAN (A) A QUALIFIED WITHDRAWAL, OR (B) A WITHDRAWAL MADE  AS  THE
RESULT OF THE DEATH OF THE DESIGNATED BENEFICIARY OF AN ACCOUNT.
  10.  "MANAGEMENT  CONTRACT"  SHALL  MEAN  THE CONTRACT EXECUTED BY THE
COMPTROLLER AND A FINANCIAL ORGANIZATION SELECTED TO ACT AS A DEPOSITORY
AND MANAGER OF THE PROGRAM.
  11. "SAVINGS AGREEMENT" SHALL MEAN  AN  AGREEMENT  BETWEEN  THE  COMP-
TROLLER OR A FINANCIAL ORGANIZATION AND THE ACCOUNT OWNER.
  12.  "PROGRAM MANAGER" SHALL MEAN A FINANCIAL ORGANIZATION SELECTED BY
THE COMPTROLLER TO ACT AS A DEPOSITORY AND MANAGER OF THE PROGRAM.
  13. "INDIVIDUAL WITH A DISABILITY" SHALL MEAN AN INDIVIDUAL WHO IS  AN
"ELIGIBLE   INDIVIDUAL"   AS   DEFINED   UNDER   SECTION   FIVE  HUNDRED
TWENTY-NINE-A.
  14. "SECTION FIVE HUNDRED TWENTY-NINE-A" MEANS  SECTION  FIVE  HUNDRED
TWENTY-FIVE-A  OF  THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, OR ANY
SUCCESSOR PROVISION THERETO, AND ANY REGULATIONS PROMULGATED  THEREUNDER
OR  TAX ANNOUNCEMENTS OR OTHER BINDING REGULATORY GUIDANCE PROVIDED WITH
RESPECT THERETO.
  S 90-B. ESTABLISHMENT OF PLAN.
  1. THE SUPERINTENDENT SHALL ESTABLISH A NY ABLE ACCOUNT PLAN  FOR  ALL
ELIGIBLE INDIVIDUALS AND FAMILIES FOR THE PURPOSE OF SUPPORTING INDIVID-

A. 6516                             3

UALS  WITH DISABILITIES TO MAINTAIN HEALTH, INDEPENDENCE, AND QUALITY OF
LIFE. THE SUPERINTENDENT SHALL PROMULGATE ANY AND ALL  RULES  AND  REGU-
LATIONS NECESSARY FOR THE IMPLEMENTATION OF THIS ARTICLE.
  2.  THE SUPERINTENDENT SHALL ENTER INTO WRITTEN AGREEMENTS WITH ONE OR
MORE FINANCIAL ORGANIZATIONS TO ADMINISTER THE NY ABLE  SAVINGS  ACCOUNT
PLAN  FOR  ELIGIBLE  INDIVIDUALS  AND  FAMILIES AND TO INVEST FUNDS HELD
PURSUANT TO SUCH PLAN.  THE  SUPERINTENDENT  SHALL  ESTABLISH  REPORTING
REQUIREMENTS  FOR SUCH FINANCIAL ORGANIZATIONS INCLUDING BUT NOT LIMITED
TO REPORTS TO THE SUPERINTENDENT, PARTICIPATING  INDIVIDUALS  AND  FAMI-
LIES,  PARTICIPATING EMPLOYERS, AND FEDERAL GOVERNMENT AGENCIES, REGARD-
ING THE FISCAL STATUS OF NY ABLE SAVINGS ACCOUNTS.
  3. NY ABLE ACCOUNTS SHALL BE  MAINTAINED  BY  FINANCIAL  ORGANIZATIONS
UNDER  WRITTEN  AGREEMENT WITH THE SUPERINTENDENT. SUCH FINANCIAL ORGAN-
IZATIONS SHALL BE SOLELY RESPONSIBLE FOR DISTRIBUTIONS  TO  PARTICIPANTS
PURSUANT TO THIS ARTICLE.
  4.  NOTWITHSTANDING  ANY  OTHER  PROVISIONS  TO  THE CONTRARY, NY ABLE
ACCOUNTS SHALL NOT BE CONSIDERED  IN  DETERMINING  ELIGIBILITY  FOR  ANY
LOCAL OR STATE MEANS-TESTED PROGRAM.
  S 90-C. NY ABLE ACCOUNT ADVISORY COMMITTEE.
  1.  THE  SUPERINTENDENT  SHALL  ESTABLISH  A  NY ABLE ACCOUNT ADVISORY
COMMITTEE.
  2. THE SUPERINTENDENT SHALL APPOINT MEMBERS OF  THE  NY  ABLE  ACCOUNT
ADVISORY COMMITTEE IN CONSULTATION WITH THE NEW YORK STATE DEPARTMENT OF
HEALTH,  THE  OFFICE  OF  MENTAL HEALTH, AND THE OFFICE FOR PERSONS WITH
DEVELOPMENTAL DISABILITIES. THE MEMBERS SHALL BE APPOINTED FOR A TERM OF
THREE YEARS.
  (A) AT LEAST ONE HALF OF THE MEMBERS OF THE NY ABLE  ACCOUNT  ADVISORY
COMMITTEE MUST HAVE KNOWLEDGE, SKILL AND EXPERTISE IN ISSUES RELATING TO
INDIVIDUALS WITH DISABILITIES.
  (B) THE MEMBERS SHALL BE REPRESENTATIVE OF ALL GEOGRAPHIC AREAS OF THE
STATE.
  3. THE ADVISORY COMMITTEE SHALL:
  (A)  CONSIDER, STUDY AND REVIEW THE WORK OF THE SUPERINTENDENT AND THE
COMPTROLLER IN RELATION TO THE NY ABLE ACCOUNT PROGRAM.
  (B) ADVISE THE SUPERINTENDENT AND COMPTROLLER AND MAKE RECOMMENDATIONS
FOR THE IMPROVEMENT OF THE NY ABLE ACCOUNT PROGRAM.
  4. THE ADVISORY COMMITTEE SHALL MEET AT LEAST TWICE PER YEAR.
  5. THE MEMBERS OF THE ADVISORY COMMITTEE SHALL RECEIVE NO COMPENSATION
FOR THEIR SERVICES AS MEMBERS, BUT EACH SHALL BE ALLOWED  THE  NECESSARY
AND  ACTUAL  EXPENSES  INCURRED  IN THE PERFORMANCE OF HIS OR HER DUTIES
UNDER THIS SECTION.
  6. IN NO EVENT SHALL ANY MEMBER, OFFICER, OR EMPLOYEE OF THE  ADVISORY
COMMITTEE  BE  LIABLE  FOR DAMAGES IN ANY CIVIL ACTION FOR ANY ACT DONE,
FAILURE TO ACT, OR STATEMENT OR OPINION MADE, WHILE DISCHARGING  HIS  OR
HER  DUTIES  AS A MEMBER, OFFICER, OR EMPLOYEE OF THE ADVISORY COMMITTEE
IF HE OR SHE SHALL HAVE ACTED IN GOOD FAITH, WITH REASONABLE CARE.
  S 90-D. PROGRAM REQUIREMENTS.
  1. NY ABLE ACCOUNTS ESTABLISHED PURSUANT TO  THE  PROVISIONS  OF  THIS
ARTICLE SHALL BE GOVERNED BY THE PROVISIONS OF THIS SECTION.
  2.  A NY ABLE ACCOUNT MAY BE OPENED ONLY BY THE DESIGNATED BENEFICIARY
UNLESS OTHERWISE PERMITTED UNDER SECTION FIVE HUNDRED TWENTY-NINE-A.  IF
THE  DESIGNATED  BENEFICIARY OF THE ACCOUNT IS A MINOR OR HAS A GUARDIAN
OR OTHER FIDUCIARY APPOINTED FOR MANAGING  THE  BENEFICIARY'S  FINANCIAL
AFFAIRS,  THE  GUARDIAN OR FIDUCIARY FOR SUCH DESIGNATED BENEFICIARY MAY
SERVE AS THE ACCOUNT OWNER IF SUCH FORM OF OWNERSHIP IS PERMITTED OR NOT
PROHIBITED UNDER SECTION FIVE HUNDRED TWENTY-NINE-A.

A. 6516                             4

  (A) AN APPLICATION FOR SUCH ACCOUNT SHALL BE IN THE FORM PRESCRIBED BY
THE PROGRAM AND CONTAIN THE FOLLOWING:
  (I) THE NAME, ADDRESS AND SOCIAL SECURITY NUMBER OR EMPLOYER IDENTIFI-
CATION NUMBER OF THE ACCOUNT OWNER;
  (II) THE DESIGNATION OF A DESIGNATED BENEFICIARY;
  (III)  THE  NAME, ADDRESS AND SOCIAL SECURITY NUMBER OF THE DESIGNATED
BENEFICIARY; AND
  (IV) SUCH OTHER INFORMATION AS THE PROGRAM MAY REQUIRE.
  (B) THE COMPTROLLER MAY ESTABLISH A NOMINAL FEE FOR SUCH APPLICATION.
  3. AN ACCOUNT OWNER MAY OWN ONLY ONE NY ABLE ACCOUNT UNLESS  OTHERWISE
PERMITTED BY SECTION FIVE HUNDRED TWENTY-NINE-A.
  4.  ANY PERSON, INCLUDING THE ACCOUNT OWNER, MAY MAKE CONTRIBUTIONS TO
THE ACCOUNT AFTER THE ACCOUNT IS OPENED.
  5. CONTRIBUTIONS TO ACCOUNTS MAY BE MADE ONLY IN CASH.
  6. CONTRIBUTIONS TO A NY ABLE ACCOUNT SHALL NOT EXCEED  THE  LIMIT  ON
ANNUAL    CONTRIBUTIONS   ESTABLISHED   UNDER   SECTION   FIVE   HUNDRED
TWENTY-NINE-A.
  7. AN ACCOUNT OWNER MAY WITHDRAW ALL OR PART OF THE  BALANCE  FROM  AN
ACCOUNT ON SIXTY DAYS NOTICE OR SUCH SHORTER PERIOD AS MAY BE AUTHORIZED
UNDER  RULES  GOVERNING THE PROGRAM. SUCH RULES SHALL INCLUDE PROVISIONS
THAT WILL GENERALLY ENABLE THE DETERMINATION AS TO WHETHER A  WITHDRAWAL
IS A NONQUALIFIED WITHDRAWAL OR A QUALIFIED WITHDRAWAL.
  8.  AN  ACCOUNT  OWNER  MAY  CHANGE  THE  DESIGNATED BENEFICIARY OF AN
ACCOUNT TO ANOTHER BENEFICIARY WHO IS QUALIFIED UNDER THE PROVISIONS  OF
THIS  ARTICLE  ONLY  TO  THE EXTENT PERMITTED UNDER SECTION FIVE HUNDRED
TWENTY-NINE-A.
  9. THE PROGRAM SHALL PROVIDE SEPARATE ACCOUNTING FOR  EACH  DESIGNATED
BENEFICIARY.
  10.  AN  ACCOUNT  OWNER SHALL BE PERMITTED TO DIRECT THE INVESTMENT OF
ANY CONTRIBUTIONS TO AN ACCOUNT OR THE EARNINGS THEREON NO MORE THAN TWO
TIMES IN ANY CALENDAR YEAR.
  11. NEITHER AN ACCOUNT OWNER NOT A DESIGNATED BENEFICIARY MAY  USE  AN
INTEREST IN AN ACCOUNT AS SECURITY FOR A LOAN. ANY PLEDGE OF AN INTEREST
IN AN ACCOUNT SHALL BE OF NO FORCE AND EFFECT.
  12.  THE COMPTROLLER SHALL PROMULGATE RULES AND REGULATIONS TO PREVENT
CONTRIBUTIONS ON BEHALF OF A DESIGNATED  BENEFICIARY  IN  EXCESS  OF  AN
AMOUNT  THAT WOULD CAUSE THE AGGREGATE ACCOUNT BALANCE TO EXCEED A MAXI-
MUM ACCOUNT BALANCE, AS ESTABLISHED FROM  TIME  TO  TIME  BY  THE  COMP-
TROLLER.  SUCH  MAXIMUM AMOUNT SHALL REFLECT REASONABLE EXPENDITURES AND
SHALL REFLECT ANY LIMITATIONS DESCRIBED IN SECTION FIVE HUNDRED  TWENTY-
NINE-A.
  13.  THE  PROGRAM  SHALL ISSUE REPORTS AND NOTICES TO FEDERAL AGENCIES
AND DESIGNATED BENEFICIARIES AS  REQUIRED  UNDER  SECTION  FIVE  HUNDRED
TWENTY-NINE-A.
  14. THE PROGRAM SHALL DISCLOSE THE FOLLOWING INFORMATION IN WRITING TO
EACH ACCOUNT OWNER AND PROSPECTIVE ACCOUNT OWNER OF A NY ABLE ACCOUNT:
  (A) THE TERMS AND CONDITIONS FOR PURCHASING A NY ABLE ACCOUNT;
  (B) ANY RESTRICTIONS ON THE SUBSTITUTION OF BENEFICIARIES;
  (C) THE PERSON OR ENTITY ENTITLED TO TERMINATE THE SAVINGS AGREEMENT;
  (D) THE PERIOD OF TIME DURING WHICH A BENEFICIARY MAY RECEIVE BENEFITS
UNDER THE SAVINGS AGREEMENT;
  (E)  THE  TERMS  AND  CONDITIONS  UNDER  WHICH  MONEY MAY BE WHOLLY OR
PARTIALLY WITHDRAWN FROM THE PROGRAM, INCLUDING, BUT NOT LIMITED TO, ANY
REASONABLE CHARGES AND FEES THAT MAY BE IMPOSED FOR WITHDRAWAL;
  (F) THE PROBABLE TAX CONSEQUENCES ASSOCIATED WITH CONTRIBUTIONS TO AND
DISTRIBUTIONS FROM ACCOUNTS; AND

A. 6516                             5

  (G) ALL OTHER RIGHTS AND  OBLIGATIONS  PURSUANT  TO  NY  ABLE  SAVINGS
AGREEMENTS,  AND  ANY  OTHER  TERMS,  CONDITIONS,  AND PROVISIONS DEEMED
NECESSARY AND APPROPRIATE BY THE SUPERINTENDENT AND THE COMPTROLLER.
  15.  NY ABLE SAVINGS AGREEMENTS SHALL BE SUBJECT TO SECTION FOURTEEN-C
OF THIS CHAPTER AND THE "TRUTH-IN-SAVINGS" REGULATIONS PROMULGATED THER-
EUNDER.
  S 90-E. DISTRIBUTION REQUIREMENTS.
  1. DESIGNATED BENEFICIARIES SHALL BE ELIGIBLE FOR A DISTRIBUTION  FROM
THE  ACCUMULATED  FUNDS  DEFERRED TO THEIR NY ABLE SAVING ACCOUNT ESTAB-
LISHED PURSUANT TO  THIS  ARTICLE,  IN  FULL  AND  PARTIAL  DISBURSEMENT
OPTIONS FOR QUALIFIED EXPENSES.
  2.  UNDER  THE NY ABLE SAVINGS ACCOUNT PLAN, AMOUNTS SHALL NOT BE MADE
AVAILABLE TO DESIGNATED BENEFICIARIES UNLESS THE DESIGNATED  BENEFICIARY
HAS BEEN DETERMINED TO BE AN INDIVIDUAL WITH A DISABILITY.
  S 90-F. POWERS OF THE COMPTROLLER.
  1.  THE  COMPTROLLER MAY IMPLEMENT THE NY ABLE SAVINGS ACCOUNT PROGRAM
THROUGH USE OF  FINANCIAL  ORGANIZATIONS  AS  ACCOUNT  DEPOSITORIES  AND
MANAGERS. UNDER THE PROGRAM, INDIVIDUALS MAY ESTABLISH ACCOUNTS DIRECTLY
WITH AN ACCOUNT DEPOSITORY.
  2.  THE COMPTROLLER MAY SOLICIT PROPOSALS FROM FINANCIAL ORGANIZATIONS
TO ACT AS DEPOSITORIES AND MANGERS FROM THE PROGRAM. FINANCIAL ORGANIZA-
TIONS SUBMITTING PROPOSALS  SHALL  DESCRIBE  THE  INVESTMENT  INSTRUMENT
WHICH  WILL BE HELD IN ACCOUNTS. THE COMPTROLLER SHALL SELECT AS PROGRAM
DEPOSITORIES AND MANGERS THE  FINANCIAL  ORGANIZATION,  FROM  AMONG  THE
BIDDING  FINANCIAL ORGANIZATIONS THAT DEMONSTRATES THE MOST ADVANTAGEOUS
COMBINATION, BOTH TO POTENTIAL PROGRAM PARTICIPANTS AND THIS  STATE,  OF
THE FOLLOWING FACTORS:
  (A) FINANCIAL STABILITY AND INTEGRITY OF THE FINANCIAL ORGANIZATION;
  (B) THE SAFETY OF THE INVESTMENT INSTRUMENT BEING OFFERED;
  (C) THE ABILITY OF THE INVESTMENT INSTRUMENT TO TRACK INCREASING COSTS
OF OBTAINING CARE FOR INDIVIDUALS WITH DISABILITIES;
  (D) THE ABILITY OF THE FINANCIAL ORGANIZATION TO SATISFY RECORDKEEPING
AND REPORTING REQUIREMENTS;
  (E)  THE  FINANCIAL  ORGANIZATION'S PLAN FOR PROMOTING THE PROGRAM AND
THE INVESTMENT IT IS WILLING TO MAKE TO PROMOTE THE PROGRAM;
  (F) THE FEES, IF ANY, PROPOSED TO BE CHARGED TO  PERSONS  FOR  OPENING
ACCOUNTS;
  (G)  THE  MINIMUM  INITIAL  DEPOSIT AND MINIMUM CONTRIBUTIONS THAT THE
FINANCIAL ORGANIZATION WILL REQUIRE;
  (H) THE ABILITY OF BANKING ORGANIZATIONS TO  ACCEPT  ELECTRONIC  WITH-
DRAWALS, INCLUDING PAYROLL DEDUCTION PLANS; AND
  (I)  OTHER  BENEFITS  TO  THE  STATE  OR ITS RESIDENTS INCLUDED IN THE
PROPOSAL, INCLUDING FEES PAYABLE TO THE STATE TO COVER EXPENSES OF OPER-
ATION OF THE PROGRAM.
  3. THE COMPTROLLER MAY ENTER INTO A CONTRACT WITH A  FINANCIAL  ORGAN-
IZATION.  SUCH FINANCIAL ORGANIZATION MANAGEMENT MAY PROVIDE ONE OR MORE
TYPES OF INVESTMENT INSTRUMENT.
  4. THE COMPTROLLER MAY SELECT MORE THAN ONE FINANCIAL ORGANIZATION FOR
THE PROGRAM.
  5. A MANAGEMENT CONTRACT SHALL INCLUDE, AT A MINIMUM, TERMS  REQUIRING
THE FINANCIAL ORGANIZATION TO:
  (A)  TAKE  ANY  ACTION REQUIRED TO KEEP THE PROGRAM IN COMPLIANCE WITH
REQUIREMENTS OF SECTION 90-C OF THIS ARTICLE;
  (B) KEEP ADEQUATE RECORDS OF EACH ACCOUNT, KEEP  EACH  ACCOUNT  SEGRE-
GATED FROM EACH OTHER ACCOUNT, AND PROVIDE THE COMPTROLLER WITH INFORMA-
TION AS REQUIRED;

A. 6516                             6

  (C) IF THERE IS MORE THAN ONE PROGRAM MANAGER, PROVIDE THE COMPTROLLER
WITH SUCH INFORMATION NECESSARY TO DETERMINE COMPLIANCE;
  (D) PROVIDE THE COMPTROLLER OR HIS OR HER DESIGNEE ACCESS TO THE BOOKS
AND  RECORDS  OF  THE  PROGRAM MANAGER TO THE EXTENT NEEDED TO DETERMINE
COMPLIANCE WITH THE CONTRACT;
  (E) HOLD ALL ACCOUNTS FOR THE BENEFIT OF THE ACCOUNT OWNER;
  (F) BE AUDITED AT  LEAST  ANNUALLY  BY  A  FIRM  OF  CERTIFIED  PUBLIC
ACCOUNTANTS SELECTED BY THE PROGRAM MANAGER AND THAT THE RESULTS OF SUCH
AUDIT BE PROVIDED TO THE COMPTROLLER; AND
  (G)  PROVIDE THE COMPTROLLER WITH COPIES OF ALL REGULATORY FILINGS AND
REPORTS MADE BY IT DURING THE TERM OF THE MANAGEMENT CONTRACT  OR  WHILE
IT  IS  HOLDING ANY ACCOUNTS, OTHER THAN CONFIDENTIAL FILINGS OR REPORTS
THAT WILL NOT BECOME PART OF THE PROGRAM. THE PROGRAM MANAGER SHALL MAKE
AVAILABLE FOR REVIEW BY THE COMPTROLLER  THE  RESULTS  OF  ANY  PERIODIC
EXAMINATION  OF SUCH MANAGER BY ANY STATE OF FEDERAL BANKING, INSURANCE,
OR SECURITIES COMMISSION, EXCEPT TO  THE  EXTENT  THAT  SUCH  REPORT  OR
REPORTS  MAY  NOT BE DISCLOSED UNDER APPLICABLE LAW OR THE RULES OF SUCH
COMMISSION.
  6. THE COMPTROLLER MAY PROVIDE THAT AN AUDIT SHALL BE CONDUCTED OF THE
OPERATIONS AND FINANCIAL POSITION OF THE PROGRAM DEPOSITORY AND  MANAGER
AT  ANY TIME IF THE COMPTROLLER HAS ANY REASON TO BE CONCERNED ABOUT THE
FINANCIAL POSITION,  THE  RECORDKEEPING  PRACTICES,  OR  THE  STATUS  OF
ACCOUNTS OF SUCH PROGRAM DEPOSITORY AND MANAGER.
  7.  DURING  THE TERM OF ANY CONTRACT WITH A PROGRAM MANAGER, THE COMP-
TROLLER SHALL CONDUCT AN EXAMINATION OF SUCH MANAGER AND ITS HANDLING OF
ACCOUNTS. SUCH EXAMINATION SHALL BE CONDUCTED  AT  LEAST  BIENNIALLY  IF
SUCH  MANAGER  IS  NOT  OTHERWISE SUBJECT TO PERIODIC EXAMINATION BY THE
SUPERINTENDENT, THE FEDERAL DEPOSIT INSURANCE CORPORATION OR OTHER SIMI-
LAR ENTITY.
  8. (A) IF SELECTION OF A FINANCIAL ORGANIZATION AS A  PROGRAM  MANAGER
OR DEPOSITORY IS NOT RENEWED, AFTER THE END OF ITS TERM:
  (I) ACCOUNTS PREVIOUSLY ESTABLISHED AND HELD IN INVESTMENT INSTRUMENTS
AT SUCH FINANCIAL ORGANIZATION MAY BE TERMINATED;
  (II) ADDITIONAL CONTRIBUTIONS MAY BE MADE TO SUCH ACCOUNTS;
  (III)  NO NEW ACCOUNTS MAY BE PLACED WITH SUCH FINANCIAL ORGANIZATION;
AND
  (IV) EXISTING ACCOUNTS HELD BY SUCH DEPOSITORY SHALL REMAIN SUBJECT TO
ALL OVERSIGHT AND REPORTING REQUIREMENTS ESTABLISHED BY THE COMPTROLLER.
  (B) IF THE  COMPTROLLER  TERMINATES  A  FINANCIAL  ORGANIZATION  AS  A
PROGRAM  MANAGER OR DEPOSITORY, HE OR SHE SHALL TAKE CUSTODY OF ACCOUNTS
HELD BY SUCH FINANCIAL ORGANIZATION AND SHALL SEEK TO PROMPTLY  TRANSFER
SUCH  ACCOUNTS  TO  ANOTHER FINANCIAL ORGANIZATION THAT IS SELECTED AS A
PROGRAM MANAGER OR DEPOSITORY AND INTO INVESTMENT INSTRUMENTS AS SIMILAR
TO THE ORIGINAL INSTRUMENTS AS POSSIBLE.
  9. THE COMPTROLLER MAY ENTER INTO SUCH CONTRACTS AS IT DEEMS NECESSARY
AND PROPER FOR THE IMPLEMENTATION OF THE PROGRAM.
  S 4. Section 237 of the banking law is amended by adding a new  subdi-
vision 9 to read as follows:
  9.  SUBJECT  TO  ANY  REGULATIONS  AND  RESTRICTIONS PRESCRIBED BY THE
SUPERINTENDENT OF FINANCIAL SERVICES, A SAVINGS BANK SHALL HAVE POWER TO
ACT AS TRUSTEE OF A NEW YORK ACHIEVING  A  BETTER  LIFE  EXPERIENCE  (NY
ABLE)  SAVINGS  ACCOUNT  ESTABLISHED  PURSUANT  TO ARTICLE TWO-D OF THIS
CHAPTER, PROVIDED THAT THE PROVISIONS OF THE WRITTEN  GOVERNING  INSTRU-
MENT  CREATING  THE TRUST REQUIRE THE FUNDS OF SUCH TRUST TO BE INVESTED
EXCLUSIVELY IN DEPOSITS IN SAVINGS BANKS.

A. 6516                             7

  S 5. Subsection (c) of section 612 of the tax law is amended by adding
two new paragraphs 42 and 43 to read as follows:
  (42) CONTRIBUTIONS MADE DURING THE TAXABLE YEAR BY AN ACCOUNT OWNER TO
ONE  OR  MORE  "NY ABLE" ACCOUNTS ESTABLISHED UNDER ARTICLE TWO-D OF THE
BANKING LAW, PROVIDED, HOWEVER THAT SUCH EXCLUSION  SHALL  BE  AVAILABLE
ONLY TO THE ACCOUNT OWNER AND NOT TO ANY OTHER PERSON.
  (43)  DISTRIBUTIONS FOR QUALIFIED EXPENSES OF A DESIGNATED BENEFICIARY
FROM A "NY ABLE" ACCOUNT ESTABLISHED UNDER ARTICLE TWO-D OF THE  BANKING
LAW,  TO  THE  EXTENT  INCLUDIBLE IN GROSS INCOME FOR FEDERAL INCOME TAX
PURPOSES.
  S 6. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided, however, that effective immediate-
ly, the addition, amendment and/or repeal of any  rules  or  regulations
necessary  for  the implementation of this act on its effective date are
authorized and directed to be made  and  completed  on  or  before  such
effective date.