S T A T E O F N E W Y O R K
________________________________________________________________________
5098--A
2015-2016 Regular Sessions
I N A S S E M B L Y
February 12, 2015
___________
Introduced by M. of A. SKOUFIS, GOTTFRIED, ABINANTI, BENEDETTO, BRAUN-
STEIN, BRINDISI, COLTON, GUNTHER, JAFFEE, KIM, LIFTON, MILLER, MOSLEY,
PEOPLES-STOKES, PICHARDO, RAIA, ROBINSON, RODRIGUEZ, SKARTADOS, STECK,
CLARK, SANTABARBARA, HOOPER, MAYER, RAMOS, FAHY, ROSENTHAL, SOLAGES,
BARRETT, STIRPE, JEAN-PIERRE, ROZIC, BICHOTTE, BRONSON, BARRON, CRES-
PO, COOK, TITONE, ARROYO, JOYNER, ORTIZ, BLAKE, LINARES, CAHILL,
LAVINE, SIMON, GOLDFEDER, HEVESI, ENGLEBRIGHT, DINOWITZ, DAVILA,
AUBRY, WRIGHT, PRETLOW, SIMOTAS, HIKIND, LENTOL, WALKER, ABBATE, SIMA-
NOWITZ, GJONAJ, MARKEY, RICHARDSON -- Multi-Sponsored by -- M. of A.
BRENNAN, CERETTO, CUSICK, DenDEKKER, KAMINSKY, LUPARDO, PAULIN, PERRY,
RIVERA, RYAN, SCHIMEL, THIELE, TITUS -- read once and referred to the
Committee on Higher Education -- reported and referred to the Commit-
tee on Ways and Means -- recommitted to the Committee on Higher Educa-
tion in accordance with Assembly Rule 3, sec. 2 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the education law, in relation to enacting "Tuition-Free
NY"
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 "Tuition-Free
NY".
S 2. Paragraph h of subdivision 2 of section 355 of the education law
is amended by adding a new subparagraph 1-a to read as follows:
(1-A) THE TRUSTEES SHALL IMPLEMENT A PROGRAM TO PERMIT ANY STUDENT WHO
HAS BEEN ADMITTED TO A STATE-OPERATED INSTITUTION OF THE STATE UNIVERSI-
TY TO ATTEND WITHOUT THE PAYMENT OF TUITION AND FEES IF SUCH STUDENT
FULFILLS THE REQUIREMENTS OF SUCH PROGRAM PURSUANT TO THE PROVISIONS OF
THIS SUBPARAGRAPH. THE PROVISIONS OF THIS SUBPARAGRAPH SHALL ONLY APPLY
TO COSTS OF ONE UNDERGRADUATE DEGREE AND ANY ADDITIONAL COSTS ASSOCIATED
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04620-12-6
A. 5098--A 2
WITH MORE THAN ONE SIMULTANEOUS UNDERGRADUATE DEGREE SHALL NOT BE
COVERED BY THIS PROGRAM.
(I) THE TRUSTEES SHALL PROVIDE AN APPLICATION PROCESS AND ADMINISTER
THE PROGRAM ACCORDING TO THE FOLLOWING CRITERIA:
(A) ANY STUDENT ELIGIBLE FOR RESIDENT TUITION RATES IS ELIGIBLE FOR
THIS PROGRAM.
(B) THE STUDENT SHALL BE REQUIRED TO PERFORM A MINIMUM OF TWENTY-FIVE
HOURS OF COMMUNITY SERVICE FOR EACH YEAR OF PARTICIPATION IN THE
PROGRAM. THE PRESIDENT OF EACH INSTITUTION OR HIS OR HER DESIGNEE OR
DESIGNEES SHALL BE AUTHORIZED TO ISSUE WAIVERS WHICH PERMIT STUDENTS TO
MEET THIS SERVICE REQUIREMENT BY PERFORMING SERVICES FOR NON-QUALIFYING
ORGANIZATIONS OR, GENERALLY, THE SURROUNDING COMMUNITY; PROVIDED THAT
THE HOUR REQUIREMENT IS MET AND SUCH PRESIDENT OR HIS OR HER DESIGNEE OR
DESIGNEES IS SATISFIED THAT THE WORK PERFORMED BENEFITS THE COMMUNITY.
(C) A STUDENT SHALL BE REQUIRED TO SIGN A CONTRACT AGREEING TO RESIDE
IN NEW YORK STATE FOR A PERIOD OF FIVE YEARS SUBSEQUENT TO COMPLETION OF
HIS OR HER ACADEMIC PROGRAM.
(D) A STUDENT SHALL BE REQUIRED TO BE EMPLOYED FULL-TIME IN NEW YORK
STATE FOR A PERIOD OF FIVE YEARS SUBSEQUENT TO COMPLETION OF HIS OR HER
ACADEMIC PROGRAM. ANY PART-TIME OR COMBINATION OF PART-TIME AND
FULL-TIME EMPLOYMENT SHALL BE THE EQUIVALENT OF FIVE FULL-TIME YEARS.
ANY PERIOD OF TIME A STUDENT SPENDS UNEMPLOYED, PURSUING A GRADUATE
DEGREE OR ON ACTIVE MILITARY DUTY SHALL NOT PENALIZE A STUDENT FROM
RECEIVING THE BENEFITS OF THIS PROGRAM, BUT SHALL NOT CONTRIBUTE TO THE
ACCRUAL OF THE REQUIREMENTS OF THIS SUBCLAUSE.
(E) STUDENTS SHALL BE REQUIRED TO COMPLETE THEIR DEGREE PROGRAM WITHIN
A MINIMUM PERIOD OF TIME TO BE SET BY THE TRUSTEES WHICH SHALL BE NO
LESS THAN THREE YEARS AND NO MORE THAN FIVE YEARS.
(F) A STUDENT WHO BENEFITED FROM THE PROGRAM OUTLINED IN THIS SUBPARA-
GRAPH SHALL BE ALLOWED TO ATTEND AN OUT-OF-STATE GRADUATE SCHOOL WITHOUT
ANY PENALTY IF SUCH STUDENT PURSUES A GRADUATE DEGREE. ONCE SUCH STUDENT
CONCLUDES HIS OR HER GRADUATE SCHOOL STUDIES, SUCH STUDENT SHALL RETURN
TO NEW YORK WITHIN ONE YEAR FOR RESIDENCY AND EMPLOYMENT, PER THE
PROGRAM'S REQUIREMENTS, OR ELSE THE UNDERGRADUATE BENEFIT WILL TURN INTO
A STUDENT LOAN PURSUANT TO THE PROVISIONS OF CLAUSE (II) OF THIS SUBPAR-
AGRAPH.
(G) A STUDENT WHO BENEFITED FROM THE PROGRAM OUTLINED IN THIS SUBPARA-
GRAPH WHO IS ON ACTIVE DUTY IN THE ARMED FORCES OF THE UNITED STATES
SHALL NOT BE PENALIZED IF SUCH STUDENT MAINTAINS HIS OR HER LEGAL RESI-
DENCE IN THE STATE OF NEW YORK, DURING SUCH SERVICE. "LEGAL RESIDENCE"
AS USED IN THIS SUBCLAUSE SHALL MEAN THE PLACE WHERE A MEMBER OF THE
MILITARY INTENDS TO RETURN AND LIVE AFTER DISCHARGE OR RETIREMENT, AND
WHICH THEY CONSIDER THEIR PERMANENT HOME. LEGAL RESIDENCY SHALL BE
DETERMINED BY WHAT LOCAL AND STATE TAX LAWS A MEMBER OF THE MILITARY IS
SUBJECT TO, AND IN WHICH STATE THEY MAY VOTE.
(II) IF A STUDENT OR FORMER STUDENT FAILS TO FULFILL ANY OF THE
REQUIREMENTS SET FORTH IN CLAUSE (I) OF THIS SUBPARAGRAPH, THE TRUSTEES
SHALL CONVERT TO A STUDENT LOAN THE FULL AMOUNT OF THE TUITION WHICH
WOULD HAVE BEEN PAID BY SUCH STUDENT, AS DETERMINED BY THE NEW YORK
STATE HIGHER EDUCATION SERVICES CORPORATION, PLUS INTEREST, ACCORDING TO
A SCHEDULE TO BE DETERMINED BY SUCH CORPORATION. SUCH REPAYMENT MAY
ALSO BE REQUIRED IF A RECIPIENT FAILS TO RESPOND TO REQUESTS FOR INFOR-
MATION NECESSARY TO DETERMINE CONTINUED ELIGIBILITY OR FOR ADMINIS-
TRATION OF THE PROGRAM. THE TERMS AND CONDITIONS OF THIS CLAUSE SHALL
BE DEFERRED FOR STUDENTS WHO ENROLL ON AT LEAST A HALF-TIME BASIS IN AN
APPROVED UNDERGRADUATE, GRADUATE OR HIGHER DEGREE PROGRAM OR OTHER
A. 5098--A 3
PROFESSIONAL LICENSURE DEGREE PROGRAM UNTIL THEY ARE CONFERRED A DEGREE,
AND SHALL ALSO BE DEFERRED FOR ANY INTERRUPTION IN UNDERGRADUATE STUDY
OR EMPLOYMENT AS ESTABLISHED BY THE RULES AND REGULATIONS OF THE CORPO-
RATION. THE TERMS AND CONDITIONS OF THIS CLAUSE MAY ALSO BE DEFERRED FOR
A GRACE PERIOD, TO BE ESTABLISHED BY THE CORPORATION, FOLLOWING THE
COMPLETION OF AN APPROVED UNDERGRADUATE PROGRAM OR A GRADUATE OR HIGHER
DEGREE PROGRAM OR OTHER PROFESSIONAL LICENSURE DEGREE PROGRAM. NOTWITH-
STANDING ANY PROVISIONS OF THIS CLAUSE TO THE CONTRARY, THE CORPORATION
IS AUTHORIZED TO PROMULGATE RULES AND REGULATIONS TO PROVIDE FOR THE
WAIVER OR SUSPENSION OF ANY FINANCIAL OBLIGATION WHICH WOULD INVOLVE
EXTREME HARDSHIP.
(III) ANY STUDENT WHO ELECTS TO PARTICIPATE IN THE PROGRAM UNDER THIS
SUBPARAGRAPH SHALL BE REQUIRED TO APPLY FOR TUITION ASSISTANCE PROGRAM
FUNDING. FUNDS AWARDED ON THE TUITION ASSISTANCE PROGRAM SHALL BE
APPLIED TOWARDS THE COST OF TUITION PRIOR TO AN AWARD UNDER THIS SUBPAR-
AGRAPH.
(IV) STUDENTS SHALL BE RESPONSIBLE FOR ALL OTHER COSTS INCLUDING HOUS-
ING, FEES AND OTHER NON-TUITION RELATED CHARGES.
(V) (A) THIS PROGRAM SHALL NOT APPLY IN ACADEMIC YEARS COMMENCING ON
OR BEFORE THE EFFECTIVE DATE OF THIS SUBPARAGRAPH. (B) FOR THE FIRST TWO
YEARS AFTER THE EFFECTIVE DATE OF THIS SUBPARAGRAPH, THIS PROGRAM SHALL
ONLY APPLY TO STUDENTS ATTENDING COMMUNITY COLLEGES AS DEFINED BY SUBDI-
VISION TWO OF SECTION SIXTY-THREE HUNDRED ONE OF THIS CHAPTER. (C) IN
ALL OTHER YEARS, THIS PROGRAM SHALL APPLY TO ALL STUDENTS ATTENDING
SUNY, CUNY, AND COMMUNITY COLLEGES OF THE STATE.
S 3. Subdivision 7 of section 6206 of the education law is amended by
adding a new paragraph (d) to read as follows:
(D) THE TRUSTEES SHALL IMPLEMENT A PROGRAM TO PERMIT ANY STUDENT WHO
HAS BEEN ADMITTED TO AN INSTITUTION OPERATED BY THE CITY UNIVERSITY TO
ATTEND WITHOUT THE PAYMENT OF TUITION AND FEES IF SUCH STUDENT FULFILLS
THE REQUIREMENTS OF SUCH PROGRAM PURSUANT TO THE PROVISIONS OF THIS
PARAGRAPH.
(I) THE TRUSTEES SHALL PROVIDE AN APPLICATION PROCESS AND ADMINISTER
THE PROGRAM ACCORDING TO THE FOLLOWING CRITERIA:
(A) ANY STUDENT ELIGIBLE FOR RESIDENT TUITION RATES IS ELIGIBLE FOR
THIS PROGRAM.
(B) THE STUDENT SHALL BE REQUIRED TO PERFORM A MINIMUM OF TWENTY-FIVE
HOURS OF COMMUNITY SERVICE FOR EACH YEAR OF PARTICIPATION IN THE
PROGRAM. THE PRESIDENT OF EACH INSTITUTION OR HIS OR HER DESIGNEE OR
DESIGNEES SHALL BE AUTHORIZED TO ISSUE WAIVERS WHICH PERMIT STUDENTS TO
MEET THIS SERVICE REQUIREMENT BY PERFORMING SERVICES FOR NON-QUALIFYING
ORGANIZATIONS OR, GENERALLY, THE SURROUNDING COMMUNITY; PROVIDED THAT
THE HOUR REQUIREMENT IS MET AND SUCH PRESIDENT OR HIS OR HER DESIGNEE OR
DESIGNEES IS SATISFIED THAT THE WORK PERFORMED BENEFITS THE COMMUNITY.
(C) A STUDENT SHALL BE REQUIRED TO SIGN A CONTRACT AGREEING TO RESIDE
IN NEW YORK STATE FOR A PERIOD OF FIVE YEARS SUBSEQUENT TO COMPLETION OF
HIS OR HER ACADEMIC PROGRAM.
(D) A STUDENT SHALL BE REQUIRED TO BE EMPLOYED FULL-TIME IN NEW YORK
STATE FOR A PERIOD OF FIVE YEARS SUBSEQUENT TO COMPLETION OF HIS OR HER
ACADEMIC PROGRAM. ANY PART-TIME OR COMBINATION OF PART-TIME AND
FULL-TIME EMPLOYMENT SHALL BE THE EQUIVALENT OF FIVE FULL-TIME YEARS.
ANY PERIOD OF TIME A STUDENT SPENDS UNEMPLOYED, PURSUING A GRADUATE
DEGREE OR ON ACTIVE MILITARY DUTY SHALL NOT PENALIZE A STUDENT FROM
RECEIVING THE BENEFITS OF THIS PROGRAM, BUT SHALL NOT CONTRIBUTE TO THE
ACCRUAL OF THE REQUIREMENTS OF THIS CLAUSE.
A. 5098--A 4
(E) STUDENTS SHALL BE REQUIRED TO COMPLETE THEIR DEGREE PROGRAM WITHIN
A MINIMUM PERIOD OF TIME TO BE SET BY THE TRUSTEES WHICH SHALL BE NO
LESS THAN THREE YEARS AND NO MORE THAN FIVE YEARS.
(F) A STUDENT WHO BENEFITED FROM THE PROGRAM OUTLINED IN THIS PARA-
GRAPH SHALL BE ALLOWED TO ATTEND AN OUT-OF-STATE GRADUATE SCHOOL WITHOUT
ANY PENALTY IF SUCH STUDENT PURSUES A GRADUATE DEGREE. ONCE SUCH STUDENT
CONCLUDES HIS OR HER GRADUATE SCHOOL STUDIES, SUCH STUDENT SHALL RETURN
TO NEW YORK WITHIN ONE YEAR FOR RESIDENCY AND EMPLOYMENT, PER THE
PROGRAM'S REQUIREMENTS, OR ELSE THE UNDERGRADUATE BENEFIT WILL TURN INTO
A STUDENT LOAN PURSUANT TO THE PROVISIONS OF SUBPARAGRAPH (II) OF THIS
PARAGRAPH.
(G) A STUDENT WHO BENEFITED FROM THE PROGRAM OUTLINED IN THIS PARA-
GRAPH WHO IS ON ACTIVE DUTY IN THE ARMED FORCES OF THE UNITED STATES
SHALL NOT BE PENALIZED IF SUCH STUDENT MAINTAINS HIS OR HER LEGAL RESI-
DENCE IN THE STATE OF NEW YORK, DURING SUCH SERVICE. "LEGAL RESIDENCE"
AS USED IN THIS CLAUSE SHALL MEAN THE PLACE WHERE A MEMBER OF THE MILI-
TARY INTENDS TO RETURN AND LIVE AFTER DISCHARGE OR RETIREMENT, AND WHICH
THEY CONSIDER THEIR PERMANENT HOME. LEGAL RESIDENCY SHALL BE DETERMINED
BY WHAT LOCAL AND STATE TAX LAWS A MEMBER OF THE MILITARY IS SUBJECT TO,
AND IN WHICH STATE THEY MAY VOTE.
(II) IF A STUDENT OR FORMER STUDENT FAILS TO FULFILL ANY OF THE
REQUIREMENTS SET FORTH IN SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE TRUS-
TEES SHALL CONVERT TO A STUDENT LOAN THE FULL AMOUNT OF THE TUITION
WHICH WOULD HAVE BEEN PAID BY SUCH STUDENT, AS DETERMINED BY THE NEW
YORK STATE HIGHER EDUCATION SERVICES CORPORATION, PLUS INTEREST, ACCORD-
ING TO A SCHEDULE TO BE DETERMINED BY SUCH CORPORATION. SUCH REPAYMENT
MAY ALSO BE REQUIRED IF A RECIPIENT FAILS TO RESPOND TO REQUESTS FOR
INFORMATION NECESSARY TO DETERMINE CONTINUED ELIGIBILITY OR FOR ADMINIS-
TRATION OF THE PROGRAM. THE TERMS AND CONDITIONS OF THIS CLAUSE SHALL
BE DEFERRED FOR STUDENTS WHO ENROLL ON AT LEAST A HALF-TIME BASIS IN AN
APPROVED UNDERGRADUATE, GRADUATE OR HIGHER DEGREE PROGRAM OR OTHER
PROFESSIONAL LICENSURE DEGREE PROGRAM UNTIL THEY ARE CONFERRED A DEGREE,
AND SHALL ALSO BE DEFERRED FOR ANY INTERRUPTION IN UNDERGRADUATE STUDY
OR EMPLOYMENT AS ESTABLISHED BY THE RULES AND REGULATIONS OF THE CORPO-
RATION. THE TERMS AND CONDITIONS OF THIS CLAUSE MAY ALSO BE DEFERRED FOR
A GRACE PERIOD, TO BE ESTABLISHED BY THE CORPORATION, FOLLOWING THE
COMPLETION OF AN APPROVED UNDERGRADUATE PROGRAM OR A GRADUATE OR HIGHER
DEGREE PROGRAM OR OTHER PROFESSIONAL LICENSURE DEGREE PROGRAM. NOTWITH-
STANDING ANY PROVISIONS OF THIS CLAUSE TO THE CONTRARY, THE CORPORATION
IS AUTHORIZED TO PROMULGATE RULES AND REGULATIONS TO PROVIDE FOR THE
WAIVER OR SUSPENSION OF ANY FINANCIAL OBLIGATION WHICH WOULD INVOLVE
EXTREME HARDSHIP.
(III) ANY STUDENT WHO ELECTS TO PARTICIPATE IN THE PROGRAM UNDER THIS
PARAGRAPH SHALL BE REQUIRED TO APPLY FOR TUITION ASSISTANCE PROGRAM
FUNDING. FUNDS AWARDED ON THE TUITION ASSISTANCE PROGRAM SHALL BE
APPLIED TOWARDS THE COST OF TUITION PRIOR TO AN AWARD UNDER THIS SUBPAR-
AGRAPH.
(IV) STUDENTS SHALL BE RESPONSIBLE FOR ALL OTHER COSTS INCLUDING HOUS-
ING, FEES AND OTHER NON-TUITION RELATED CHARGES.
(V) THE PROVISIONS OF THIS SUBDIVISION SHALL NOT BE SUBJECT TO TAXA-
TION.
(VI) (A) THIS PROGRAM SHALL NOT APPLY IN ACADEMIC YEARS COMMENCING ON
OR BEFORE THE EFFECTIVE DATE OF THIS PARAGRAPH. (B) FOR THE FIRST TWO
YEARS AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH, THIS PROGRAM SHALL
ONLY APPLY TO STUDENTS ATTENDING COMMUNITY COLLEGES AS DEFINED BY SUBDI-
VISION TWO OF SECTION SIXTY-THREE HUNDRED ONE OF THIS CHAPTER. (C) IN
A. 5098--A 5
ALL OTHER YEARS, THIS PROGRAM SHALL APPLY TO ALL STUDENTS ATTENDING
SUNY, CUNY AND COMMUNITY COLLEGES OF THE STATE.
S 4. Subdivision 1 of section 6304 of the education law is amended by
adding a new paragraph e to read as follows:
E. THE TRUSTEES, SPONSORS OR OTHER GOVERNING BODY OF A COMMUNITY
COLLEGE SHALL IMPLEMENT A PROGRAM TO PERMIT ANY STUDENT WHO HAS BEEN
ADMITTED TO SUCH COMMUNITY COLLEGE TO ATTEND WITHOUT THE PAYMENT OF
TUITION AND FEES IF SUCH STUDENT FULFILLS THE REQUIREMENTS OF SUCH
PROGRAM PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH.
(I) THE TRUSTEES SHALL PROVIDE AN APPLICATION PROCESS AND ADMINISTER
THE PROGRAM ACCORDING TO THE FOLLOWING CRITERIA:
(A) ANY STUDENT ELIGIBLE FOR RESIDENT TUITION RATES IS ELIGIBLE FOR
THIS PROGRAM.
(B) THE STUDENT SHALL BE REQUIRED TO PERFORM A MINIMUM OF TWENTY-FIVE
HOURS OF COMMUNITY SERVICE FOR EACH YEAR OF PARTICIPATION IN THE
PROGRAM. THE PRESIDENT OR CHIEF ADMINISTRATOR OF EACH COMMUNITY COLLEGE
OR HIS OR HER DESIGNEE OR DESIGNEES SHALL BE AUTHORIZED TO ISSUE WAIVERS
WHICH PERMIT STUDENTS TO MEET THIS SERVICE REQUIREMENT BY PERFORMING
SERVICES FOR NON-QUALIFYING ORGANIZATIONS; PROVIDED THAT THE HOUR
REQUIREMENT IS MET AND SUCH PRESIDENT, CHIEF ADMINISTRATOR OR HIS OR HER
DESIGNEE OR DESIGNEES IS SATISFIED THAT THE WORK PERFORMED BENEFITS THE
COMMUNITY.
(C) A STUDENT SHALL BE REQUIRED TO SIGN A CONTRACT AGREEING TO RESIDE
IN NEW YORK STATE FOR A PERIOD OF FIVE YEARS SUBSEQUENT TO COMPLETION OF
HIS OR HER ACADEMIC PROGRAM.
(D) A STUDENT SHALL BE REQUIRED TO BE EMPLOYED IN NEW YORK STATE FOR A
PERIOD OF FIVE YEARS SUBSEQUENT TO COMPLETION OF HIS OR HER ACADEMIC
PROGRAM.
(E) A STUDENT SHALL BE REQUIRED TO BE EMPLOYED FULL-TIME IN NEW YORK
STATE FOR A PERIOD OF FIVE YEARS SUBSEQUENT TO COMPLETION OF HIS OR HER
ACADEMIC PROGRAM. ANY PART-TIME OR COMBINATION OF PART-TIME AND
FULL-TIME EMPLOYMENT SHALL BE THE EQUIVALENT OF FIVE FULL-TIME YEARS.
ANY PERIOD OF TIME A STUDENT SPENDS UNEMPLOYED, PURSUING A GRADUATE
DEGREE, OR ON ACTIVE MILITARY DUTY SHALL NOT PENALIZE A STUDENT FROM
RECEIVING THE BENEFITS OF THIS PROGRAM, BUT SHALL NOT CONTRIBUTE TO THE
ACCRUAL OF THE REQUIREMENTS OF THIS CLAUSE.
(F) STUDENTS SHALL BE REQUIRED TO COMPLETE THEIR DEGREE PROGRAM WITHIN
A MINIMUM PERIOD OF TIME TO BE SET BY THE TRUSTEES WHICH SHALL BE NO
LESS THAN ONE YEAR AND NO MORE THAN THREE YEARS.
(G) A STUDENT WHO BENEFITED FROM THE PROGRAM OUTLINED IN THIS SUBPARA-
GRAPH SHALL BE ALLOWED TO ATTEND AN OUT-OF-STATE GRADUATE SCHOOL WITHOUT
ANY PENALTY IF SUCH STUDENT PURSUES A GRADUATE DEGREE. ONCE SUCH STUDENT
CONCLUDES HIS OR HER GRADUATE SCHOOL STUDIES, SUCH STUDENT SHALL RETURN
TO NEW YORK WITHIN ONE YEAR FOR RESIDENCY AND EMPLOYMENT, PER THE
PROGRAM'S REQUIREMENTS, OR ELSE THE UNDERGRADUATE BENEFIT WILL TURN INTO
A STUDENT LOAN PURSUANT TO THE PROVISIONS OF SUBPARAGRAPH (II) OF THIS
PARAGRAPH.
(H) A STUDENT WHO BENEFITED FROM THE PROGRAM OUTLINED IN THIS PARA-
GRAPH WHO IS ON ACTIVE DUTY IN THE ARMED FORCES OF THE UNITED STATES
SHALL NOT BE PENALIZED IF SUCH STUDENT MAINTAINS HIS OR HER LEGAL RESI-
DENCE IN THE STATE OF NEW YORK, DURING SUCH SERVICE. "LEGAL RESIDENCE"
AS USED IN THIS CLAUSE SHALL MEAN THE PLACE WHERE A MEMBER OF THE MILI-
TARY INTENDS TO RETURN AND LIVE AFTER DISCHARGE OR RETIREMENT, AND WHICH
THEY CONSIDER THEIR PERMANENT HOME. LEGAL RESIDENCY SHALL BE DETERMINED
BY WHAT LOCAL AND STATE TAX LAWS A MEMBER OF THE MILITARY IS SUBJECT TO,
AND IN WHICH STATE THEY MAY VOTE.
A. 5098--A 6
(II) IF A STUDENT OR FORMER STUDENT FAILS TO FULFILL ANY OF THE
REQUIREMENTS SET FORTH IN SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE TRUS-
TEES SHALL CONVERT TO A STUDENT LOAN THE FULL AMOUNT OF THE TUITION
WHICH WOULD HAVE BEEN PAID BY SUCH STUDENT, AS DETERMINED BY THE NEW
YORK STATE HIGHER EDUCATION SERVICES CORPORATION, PLUS INTEREST, ACCORD-
ING TO A SCHEDULE TO BE DETERMINED BY SUCH CORPORATION. SUCH REPAYMENT
MAY ALSO BE REQUIRED IF A RECIPIENT FAILS TO RESPOND TO REQUESTS FOR
INFORMATION NECESSARY TO DETERMINE CONTINUED ELIGIBILITY OR FOR ADMINIS-
TRATION OF THE PROGRAM. THE TERMS AND CONDITIONS OF THIS SUBPARAGRAPH
SHALL BE DEFERRED FOR STUDENTS WHO ENROLL ON AT LEAST A HALF-TIME BASIS
IN AN APPROVED UNDERGRADUATE, GRADUATE OR HIGHER DEGREE PROGRAM OR OTHER
PROFESSIONAL LICENSURE DEGREE PROGRAM UNTIL THEY ARE CONFERRED A DEGREE,
AND SHALL ALSO BE DEFERRED FOR ANY INTERRUPTION IN UNDERGRADUATE STUDY
OR EMPLOYMENT AS ESTABLISHED BY THE RULES AND REGULATIONS OF THE CORPO-
RATION. THE TERMS AND CONDITIONS OF THIS SUBPARAGRAPH MAY ALSO BE
DEFERRED FOR A GRACE PERIOD, TO BE ESTABLISHED BY THE CORPORATION,
FOLLOWING THE COMPLETION OF AN APPROVED UNDERGRADUATE PROGRAM OR A GRAD-
UATE OR HIGHER DEGREE PROGRAM OR OTHER PROFESSIONAL LICENSURE DEGREE
PROGRAM. NOTWITHSTANDING ANY PROVISIONS OF THIS SUBPARAGRAPH TO THE
CONTRARY, THE CORPORATION IS AUTHORIZED TO PROMULGATE RULES AND REGU-
LATIONS TO PROVIDE FOR THE WAIVER OR SUSPENSION OF ANY FINANCIAL OBLI-
GATION WHICH WOULD INVOLVE EXTREME HARDSHIP.
(III) ANY STUDENT WHO ELECTS TO PARTICIPATE IN THE PROGRAM UNDER THIS
PARAGRAPH SHALL BE REQUIRED TO APPLY FOR TUITION ASSISTANCE PROGRAM
FUNDING. FUNDS AWARDED ON THE TUITION ASSISTANCE PROGRAM SHALL BE
APPLIED TOWARDS THE COST OF TUITION PRIOR TO AN AWARD UNDER THIS SUBPAR-
AGRAPH.
(IV) STUDENTS SHALL BE RESPONSIBLE FOR ALL OTHER COSTS INCLUDING HOUS-
ING, FEES AND OTHER NON-TUITION RELATED CHARGES.
(V) (A) THIS PROGRAM SHALL NOT APPLY IN ACADEMIC YEARS COMMENCING ON
OR BEFORE THE EFFECTIVE DATE OF THIS PARAGRAPH. (B) FOR THE FIRST TWO
YEARS AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH, THIS PROGRAM SHALL
ONLY APPLY TO STUDENTS ATTENDING COMMUNITY COLLEGES AS DEFINED BY SUBDI-
VISION TWO OF SECTION SIXTY-THREE HUNDRED ONE OF THIS CHAPTER. (C) IN
ALL OTHER YEARS, THIS PROGRAM SHALL APPLY TO ALL STUDENTS ATTENDING
SUNY, CUNY AND COMMUNITY COLLEGES OF THE STATE.
S 5. Subdivision 1 of section 6304 of the education law is amended by
adding a new paragraph a-1 to read as follows:
A-1. STATE FINANCIAL AID SHALL BE INCREASED ABOVE THE ONE-THIRD AMOUNT
OF OPERATING COSTS SET FORTH IN PARAGRAPH A OF THIS SUBDIVISION BY AN
AMOUNT WHICH IS EQUAL TO THE COST OF TUITION AWARDED TO STUDENTS WHO
APPLY AND QUALIFY FOR THE PROGRAM SET FORTH IN PARAGRAPH E OF THIS
SUBDIVISION.
S 6. This act shall take effect on the first of April next succeeding
the date on which it shall have become a law; provided, however, effec-
tive immediately, the addition, amendment and/or repeal of any rule or
regulation necessary for the implementation of this act on its effective
date is authorized to be made and completed on or before such effective
date.