2023 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.