NY Educ L § 695-D (2021)
2021 New York Laws EDN - Education Title 1 - General Provisions Article 14-A - New York State College Choice Tuition Savings Program 695-D - Powers of the Comptroller.

§  695-d.  Powers of the comptroller. 1. The comptroller may implement the  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  managers  of  the  program.  Financial organizations  submitting  proposals  shall  describe   the   investment instrument  which will be held in accounts. The comptroller shall select as program depositories and managers 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 higher education;   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 withdrawals, 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 operation of the program.   3. The  comptroller  may  enter  into  a  contract  with  a  financial organization.  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 six hundred ninety-five-e of  this  article  and any  actions  not  contrary  to  its  contract  to manage the program to qualify as a "qualified state tuition plan" under  section  529  of  the Internal Revenue Code of 1986, as amended;   b. Keep adequate records of each account, keep each account segregated from   each   other  account,  and  provide  the  comptroller  with  the information necessary to prepare the statements required by section  six hundred ninety-five-e of this article;   c.  Compile  and total information contained in statements required to be prepared under section six hundred ninety-five-e of this article  and provide such compilations to the comptroller;   d.  If there is more than one program manager, provide the comptroller with such information necessary to determine compliance with section six hundred ninety-five-e of this article;   e. Provide the comptroller or his designee access  to  the  books  and records  of  the  program  manager  to  the  extent  needed to determine compliance with the contract;   f. Hold all accounts for the benefit of the account owner;   g. 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;    h.  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 or 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; and   i.  Ensure  that any description of the program, whether in writing or through the use of any media, is  consistent  with  the  marketing  plan developed  in the memorandum of understanding pursuant to the provisions of section six hundred ninety-five-c of this article.   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 comptroller 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  of financial services, the federal deposit insurance corporation or other similar 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.