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A08432 Summary:

BILL NOA08432
 
SAME ASNo Same As
 
SPONSORFahy
 
COSPNSRSeawright, Ramos
 
MLTSPNSR
 
Amd §667, Ed L
 
Relates to the criteria for determining tuition assistance program awards; provides for the elimination of the distinction between dependent students and independent students for the purpose of determining tuition assistance program award amounts and eligibility.
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A08432 Actions:

BILL NOA08432
 
12/29/2023referred to higher education
01/03/2024referred to higher education
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A08432 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8432
 
SPONSOR: Fahy
  TITLE OF BILL: An act to amend the education law, in relation to the criteria for determining tuition assistance program awards   PURPOSE OR GENERAL IDEA OF BILL: To create a single standard for determining tuition assistance program eligibility and award amounts, regardless of a student's dependent or independent tax-filing status.   SUMMARY OF PROVISIONS: Section 1 amends subsection 3 of section 667 of the education law to remove subparagraph (iii) which creates separate income thresholds and award amounts for students who are independent tax-filers, and to make all students subject to the award amounts outlined in subparagraph ji) and income thresholds outlined in subparagraph (ii). Section 2 is the effective date.   JUSTIFICATION: The current eligibility criteria for New York's Tuition Assistance Program creates a two-tiered system of support for New Yorkers pursuing higher education. Students who are claimed as dependents are eligible for TAP as long as their family income is less than $80,000, and they can receive up to a maximum award of $5,665. Students who are independ- ent tax-filers, however, receive much less support. Single independent tax-filers with no dependents are only eligible if their income is below $10,000, and for married independent students, the income limit is $40,000. The maximum award amount of $3,525 for independent students is 40% lower than it is for dependent students. This system places an unjustified burden on nontraditional students-it assumes that single independent students can afford to finance their own higher education if they make more than $10,000. Given the challenges facing New York State in terms of workforce shortages and declining college enrollment, TAP should be redesigned to encourage nontraditional students to go to college and gain new skills and credentials. The elim- ination of the distinction between dependent and independent students would level the playing field, removing a barrier to access to higher education for thousands of nontraditional students.   LEGISLATIVE HISTORY: None.   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: This act shall take effect 180 days after it shall have become law.
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A08432 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8432
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    December 29, 2023
                                       ___________
 
        Introduced  by  M. of A. FAHY -- read once and referred to the Committee
          on Higher Education
 
        AN ACT to amend the education law,  in  relation  to  the  criteria  for
          determining tuition assistance program awards
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision 3 of section 667 of the education law, as added
     2  by chapter 83 of the laws of 1995, paragraph a as amended by  section  1
     3  and  subparagraph  (iv) of paragraph b as amended by section 3 of part B
     4  of chapter 60 of the laws of 2000, clause (A)  of  subparagraph  (i)  of
     5  paragraph  a  as  amended by section 1 and subparagraphs (i) and (ii) of
     6  paragraph b as amended by section 2 of part DD of chapter 56 of the laws
     7  2021, subparagraph (iii) of paragraph a as amended by section 3 of  part
     8  H  and paragraph c as relettered by section 2 of part J of chapter 58 of
     9  the laws of 2011 and paragraph b as amended by chapter 309 of  the  laws
    10  of 1996, is amended to read as follows:
    11    3. Tuition assistance program awards.
    12    a.  Amount.  The  president  shall make awards to students enrolled in
    13  degree-granting  institutions  or  registered  not-for-profit   business
    14  schools  qualified  for  tax exemption under § 501(c)(3) of the internal
    15  revenue code for federal income tax purposes in the following amounts:
    16    (i) For each year of undergraduate study, assistance shall be provided
    17  as computed on the basis of the  amount  which  is  the  lesser  of  the
    18  following:
    19    (A)  [(1)  In the case of students who have not been granted an exclu-
    20  sion of parental income, who have qualified as an orphan, foster  child,
    21  or  ward  of the court for the purposes of federal student financial aid
    22  programs authorized by Title IV of the Higher Education Act of 1965,  as
    23  amended,  or had a dependent for income tax purposes during the tax year
    24  next preceding the academic year for which application is  made,  except

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13836-01-3

        A. 8432                             2

     1  for  those  students  who have been granted exclusion of parental income
     2  who have a spouse but no other dependent:
     3    (a)]  Five thousand dollars, except starting in two thousand fourteen-
     4  two thousand fifteen such  students  shall  receive  five  thousand  one
     5  hundred  sixty-five dollars, and except starting in two thousand twenty-
     6  one--two thousand twenty-two and thereafter such students shall  receive
     7  five  thousand  six  hundred  sixty-five  dollars, provided however that
     8  nothing herein shall be construed as increasing any award made  pursuant
     9  to  this section for an academic year prior to two thousand twenty-one--
    10  two thousand twenty-two; or
    11    [(b)] (B) For undergraduate students enrolled in a program of study at
    12  a non-public degree-granting institution that does not offer  a  program
    13  of  study  that leads to a baccalaureate degree, or at a registered not-
    14  for-profit business school qualified for  tax  exemption  under  section
    15  501(c)(3)  of  the internal revenue code for federal income tax purposes
    16  that does not offer a program of study that  leads  to  a  baccalaureate
    17  degree,  four  thousand dollars, except starting in two thousand twenty-
    18  one--two thousand twenty-two and thereafter such students shall  receive
    19  four  thousand five hundred dollars. Provided, however, that this [subi-
    20  tem] clause shall not apply to students enrolled in a program  of  study
    21  leading to a certificate or degree in nursing[.]; or
    22    [(2) In the case of students receiving awards pursuant to subparagraph
    23  (iii)  of this paragraph and those students who have been granted exclu-
    24  sion of parental income who have a spouse but no other dependent  begin-
    25  ning  in  the  two thousand twenty-one--two thousand twenty-two academic
    26  year and thereafter, three thousand five  hundred  twenty-five  dollars,
    27  provided  that nothing herein shall be construed as increasing any award
    28  made for any prior academic year; or
    29    (B)] (C) (1) Ninety-five percent of the amount of  tuition  (exclusive
    30  of  educational fees) charged and, if applicable, the college fee levied
    31  by the state university of New York pursuant to the April  first,  nine-
    32  teen  hundred  sixty-four  financing  agreement  with the New York state
    33  dormitory authority.
    34    (2) For the two thousand one--two thousand two academic year and ther-
    35  eafter one hundred percent of the amount of tuition (exclusive of educa-
    36  tional fees) charged and, if applicable, the college fee levied  by  the
    37  state  university  of  New  York  pursuant  to the April first, nineteen
    38  hundred sixty-four financing agreement with the New York state dormitory
    39  authority.
    40    (ii) [Except for students as noted in subparagraph (iii) of this para-
    41  graph, the] The base amount as determined from subparagraph (i) of  this
    42  paragraph, shall be reduced in relation to income as follows:

    43  Amount of income                    Schedule of reduction
    44                                      of base amount
 
    45  (A) Less than seven thousand        None
    46      dollars
    47  (B) Seven thousand dollars or       Seven per centum of excess
    48      more, but less than eleven      over seven thousand dollars
    49      thousand dollars
    50  (C) Eleven thousand dollars or      Two hundred eighty dollars
    51      more, but less than eighteen    plus ten per centum of excess
    52      thousand dollars                over eleven thousand dollars
    53  (D) Eighteen thousand dollars or    Nine hundred eighty dollars
    54      more, but not more than eighty  plus twelve per centum of

        A. 8432                             3
 
     1      thousand dollars                excess over eighteen
     2                                      thousand dollars

     3    (iii)  [(A)  For  students who have been granted exclusion of parental
     4  income and were single with no dependent for income tax purposes  during
     5  the  tax  year next preceding the academic year for which application is
     6  made, the base amount, as determined in subparagraph (i) of  this  para-
     7  graph, shall be reduced in relation to income as follows:

     8  Amount of income                    Schedule of reduction
     9                                      of base amount

    10  (1) Less than three thousand        None
    11      dollars
    12  (2) Three thousand dollars or       Thirty-one per centum of
    13      more, but not more than ten     amount in excess of three
    14      thousand dollars                thousand dollars

    15    (B)  For  those  students  who have been granted exclusion of parental
    16  income who have a spouse but no other dependent, for income tax purposes
    17  during the tax year next preceding the academic year for which  applica-
    18  tion is made, the base amount, as determined in subparagraph (i) of this
    19  paragraph, shall be reduced in relation to income as follows:

    20  Amount of income                    Schedule of reduction
    21                                      of base amount

    22  (1) Less than seven thousand        None
    23      dollars
    24  (2) Seven thousand dollars or       Seven per centum of excess
    25      more, but less than eleven      over seven thousand dollars
    26      thousand dollars
    27  (3) Eleven thousand dollars or      Two hundred eighty dollars
    28      more, but less than eighteen    plus ten per centum of excess
    29      thousand dollars                over eleven thousand dollars
    30  (4) Eighteen thousand dollars or    Nine hundred eighty dollars
    31      more, but not more than forty   plus twelve per centum of
    32      thousand dollars                excess over eighteen
    33                                      thousand dollars

    34    (iv)]  If  the  amount of reduction is not a whole dollar, it shall be
    35  reduced to the next lowest whole dollar. In the case of any student  who
    36  has  received  four  or  more  payments  pursuant  to any and all awards
    37  provided for in this subdivision, for the two thousand--two thousand one
    38  academic year the base amount shall be  reduced  by  an  additional  one
    39  hundred fifty dollars for the two thousand one--two thousand two academ-
    40  ic year and thereafter the base amount shall be reduced by an additional
    41  one hundred dollars.
    42    [(v)] (iv) The award shall be the net amount of the base amount deter-
    43  mined pursuant to subparagraph (i) of this paragraph reduced pursuant to
    44  subparagraph  (ii)  [or (iii)] of this paragraph but the award shall not
    45  be reduced for the two thousand--two thousand one and two thousand  one-
    46  -two  thousand two academic years below two hundred seventy-five dollars
    47  if the amount of income is eighty thousand dollars or less and more than
    48  seventy thousand dollars,  three  hundred  twenty-five  dollars  if  the
    49  amount of income is seventy thousand dollars or less and more than sixty

        A. 8432                             4
 
     1  thousand  dollars  and four hundred twenty-five dollars if the amount of
     2  income is sixty thousand dollars or less.
     3    [(vi)]  (v) For the two thousand two--two thousand three academic year
     4  and thereafter, the award shall be the net amount  of  the  base  amount
     5  determined pursuant to subparagraph (i) of this paragraph reduced pursu-
     6  ant  to  subparagraph  (ii)  [or  (iii)] of this paragraph but the award
     7  shall not be reduced below five hundred dollars.
     8    b. Amount. The president shall make awards to students enrolled in two
     9  year programs offered in registered private business schools except  for
    10  registered  not-for-profit  business schools qualified for tax exemption
    11  under section 501(c)(3) of the internal revenue code for federal  income
    12  tax purposes in the following amounts:
    13    (i)  For  each year of study, assistance shall be provided as computed
    14  on the basis of the amount which is the lesser of the following:
    15    (A) [(1)] one thousand three hundred dollars[, or
    16    (2) for students receiving awards pursuant to  subparagraph  (iii)  of
    17  this paragraph, one thousand one hundred forty dollars]; or
    18    (B)  (1)  Ninety-five  percent  of the amount of tuition (exclusive of
    19  educational fees) charged.
    20    (2) For the two thousand one--two thousand two academic year and ther-
    21  eafter one hundred percent of the amount of tuition (exclusive of educa-
    22  tional fees).
    23    (ii) [Except for students as noted in subparagraph (iii) of this para-
    24  graph, the] The base amount as determined in subparagraph  (i)  of  this
    25  paragraph, shall be reduced in relation to income as follows:

    26  Amount of income                    Schedule of reduction
    27                                      of base amount
 
    28  (A) Less than seven thousand        None
    29      dollars
    30  (B) Seven thousand dollars or       Seven per centum of the excess
    31      more, but less than eleven      over seven thousand dollars
    32      thousand dollars
 
    33    (iii) [For students who have been granted exclusion of parental income
    34  and were single with no dependent for income tax purposes during the tax
    35  year next preceding the academic year for which application is made, the
    36  base  amount, as determined in subparagraph (i) of this paragraph, shall
    37  be reduced in relation to income as follows:

    38  Amount of income                    Schedule of reduction of
    39                                      base amount

    40  (A) Less than three thousand        None
    41      dollars
    42  (B) Three thousand dollars or       Thirty-one per centum of the ex-
    43      more, but not more than ten     cess over three thousand dollars
    44      thousand dollars

    45    (iv)] If the amount of reduction is not a whole dollar,  it  shall  be
    46  reduced  to the next lowest whole dollar. In the case of any student who
    47  has received four or more  payments  pursuant  to  any  and  all  awards
    48  provided for in this subdivision, for the two thousand--two thousand one
    49  academic  year  the  base  amount  shall be reduced by an additional one
    50  hundred fifty dollars for the two thousand one--two thousand two academ-

        A. 8432                             5
 
     1  ic year and thereafter the base amount shall be reduced by an additional
     2  one hundred dollars.
     3    [(v)] (iv) The award shall be the net amount of the base amount deter-
     4  mined pursuant to subparagraph (i) of this paragraph reduced pursuant to
     5  subparagraph  (ii)  [or (iii)] of this paragraph but the award shall not
     6  be reduced below one hundred dollars. If the income exceeds the  maximum
     7  amount  of  income  allowable under subparagraph (ii) [or (iii)] of this
     8  paragraph, no award shall be made.
     9    c. Restrictions. In no [even shall] event shall any award:
    10    (i) be made unless the annual tuition (exclusive of educational  fees)
    11  and,  if  applicable,  the college fee levied by the state university of
    12  New York pursuant  to  the  April  first,  nineteen  hundred  sixty-four
    13  financing  agreement with the New York state dormitory authority charged
    14  for the program in which the student is  enrolled  total  at  least  two
    15  hundred dollars; or
    16    (ii)  exceed  the  amount  by  which such annual tuition (exclusive of
    17  educational fees) and, if applicable, the  college  fee  levied  by  the
    18  state  university  of  New  York  pursuant  to the April first, nineteen
    19  hundred sixty-four financing agreement with the New York state dormitory
    20  authority exceed the total of all other state, federal, or other  educa-
    21  tional  aid  that  is  received or receivable by such student during the
    22  school year for which such award is applicable and that, in the judgment
    23  of the commissioner, would duplicate the purposes of the award; or
    24    (iii) be made when income exceeds the maximum income set forth in this
    25  subdivision. The commissioner shall list in his  regulations  all  major
    26  state and federal financial aid available to New York state students and
    27  identify  any  forms  of aid that are duplicative of the purposes of the
    28  tuition assistance  program.  For  the  purposes  of  this  subdivision,
    29  neither United States war orphan educational benefits nor benefits under
    30  the  veterans'  readjustment  act of nineteen hundred sixty-six shall be
    31  considered as federal or other educational aid.
    32    § 2. This act shall take effect on the one hundred eightieth day after
    33  it shall have become a law.
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