NY State Senate Bill 2017-S9035

Senate Bill S9035

2017-2018 Legislative Session

Exempts certain funds in a qualified tuition program in the calculation of household benefits under public assistance programs

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 14, 2018	referred to rules

2017-S9035 (ACTIVE) - Details

See Assembly Version of this Bill:: A4371
Current Committee:: Senate Rules
Law Section:: Social Services Law
Laws Affected:: Amd §131-n, Soc Serv L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S4344, A5156
2019-2020: S1089, A5016

2017-S9035 (ACTIVE) - Summary

Exempts certain funds in a qualified tuition program in the calculation of household benefits under public assistance programs.

2017-S9035 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S9035

SPONSOR: PERSAUD
 
TITLE OF BILL:  An act to amend the social services law, in relation
to exempting certain funds in a qualified tuition program in the calcu-
lation of household benefits under public assistance programs

 
PURPOSE OF BILL:

This legislation will exempt or disregard funds in a qualified tuition
program that satisfies the requirement of section 529 of the Internal
Revenue Code of 1986, as amended, from assets limit tests to qualify for
public assistance.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Subdivision 1 of section 131-n of the social services law, as
amended by chapter 373 of the laws of 2003, paragraph (c) as amended by
section 5 of part J of chapter 58 of the laws of 2014, is amended to
include the exemption of funds in qualified tuition programs.

 
JUSTIFICATION:

Currently New Yorkers who have more than $2,000 in assets are not eligi-
ble to receive public assistance. A few of these assets as listed in New
York Social services Law 131-n are excluded; such as refunds from the
Earned Income tax credit and individual Development Accounts which aid
families in saving money allowing them to work towards greater self-suf-
ficiency. Currently 529 accounts which permit families to put aside
money and invest in their children's future college educations are not
included in these exemptions. Meaning if a family is able to put aside
$2,000 to help send their children to college they can no longer receive
public assistance, this puts these families at a grave disadvantage. A
recent study showed that a mere 9% of students from low-income families
obtain a bachelor's degree compared with 54% of students from wealthier
families. New York's low-income families need support and assistance so
that they may develop college savings for their children. In order to
help these families obtain The American dream and aid their children in
attending college Social Services Law 131-n desperately needs to be
amended to exempt 529 accounts to help these New York families.

 
FISCAL IMPLICATIONS:

To be determined.

 
LEGISLATIVE HISTORY:

A3156 (2015-2016) referred to social services

 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that the
amendments to section 131-n of the social services law made by section
one of this act shall not affect the expiration of such section and
shall be deemed to expire therewith.

2017-S9035 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9035
 
                             I N  S E N A T E
 
                               June 14, 2018
                                ___________
 
 Introduced  by  Sen. PERSAUD -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the  social  services  law,  in  relation  to  exempting
   certain  funds  in  a  qualified tuition program in the calculation of
   household benefits under public assistance programs
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision 1 of section 131-n of the social services law,
 as amended by section 1 of part X of chapter 54 of the laws of 2016,  is
 amended to read as follows:
   1.  The  following resources shall be exempt and disregarded in calcu-
 lating the amount of benefits of any household under any public  assist-
 ance program: (a) cash and liquid or nonliquid resources up to two thou-
 sand  dollars,  or  three  thousand dollars in the case of households in
 which any member is sixty years of age or older, (b)  an  amount  up  to
 four  thousand  six  hundred  fifty  dollars  in a separate bank account
 established by an individual while currently in  receipt  of  assistance
 for  the  sole purpose of enabling the individual to purchase a first or
 replacement vehicle for  the  recipient  to  seek,  obtain  or  maintain
 employment, so long as the funds are not used for any other purpose, (c)
 an  amount  up  to  one thousand four hundred dollars in a separate bank
 account established by an  individual  while  currently  in  receipt  of
 assistance  for the purpose of paying tuition at a two-year or four-year
 accredited post-secondary educational institution, so long as the  funds
 are  not  used  for  any  other purpose, (d) the home which is the usual
 residence of the household, (e)  one  automobile,  up  to  ten  thousand
 dollars  fair  market  value,  through  March thirty-first, two thousand
 seventeen; one automobile, up to eleven  thousand  dollars  fair  market
 value,  from  April  first, two thousand seventeen through March thirty-
 first, two thousand eighteen; and one automobile, up to twelve  thousand
 dollars  fair market value, beginning April first, two thousand eighteen
 and thereafter, or such other higher dollar value as  the  local  social
 services  district may elect to adopt, (f) one burial plot per household
 member as defined in  department  regulations,  (g)  bona  fide  funeral
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD01980-01-7

 S. 9035                             2
 
 agreements  up to a total of one thousand five hundred dollars in equity
 value per household member,  (h)  funds  in  an  individual  development
 account established in accordance with subdivision five of section three
 hundred  fifty-eight  of  this chapter and section four hundred three of
 the social security act [and], (i) for a  period  of  six  months,  real
 property  which  the household is making a good faith effort to sell, in
 accordance with department regulations and  tangible  personal  property
 necessary  for  business  or  for employment purposes in accordance with
 department regulations, AND (J) FUNDS IN  A  QUALIFIED  TUITION  PROGRAM
 THAT  SATISFIES  THE  REQUIREMENT OF SECTION 529 OF THE INTERNAL REVENUE
 CODE OF 1986, AS AMENDED. If federal  law  or  regulations  require  the
 exemption or disregard of additional income and resources in determining
 need for family assistance, or medical assistance not exempted or disre-
 garded  pursuant  to any other provision of this chapter, the department
 may, by regulations subject to the approval of the director of the budg-
 et, require social services officials to exempt or disregard such income
 and resources. Refunds resulting from earned income tax credits shall be
 disregarded in public assistance programs.
   § 2. This act shall take effect immediately; provided,  however,  that
 the  amendments  to  section  131-n  of  the social services law made by
 section one of this act shall not affect the expiration of such  section
 and shall be deemed to expire therewith.

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