2023 New York Laws › MHY - Mental Hygiene › Title E - General Provisions › Article 84 - New York Achieving a Better Life Experience Savings Account Act › 84.05 - Powers and Duties of the Comptroller.

§ 84.05 Powers and duties of the comptroller.
1.  The  comptroller  shall  establish  a NY ABLE account plan for all
eligible individuals for the  purpose  of  supporting  individuals  with
disabilities  to maintain health, independence, and quality of life. The
comptroller is hereby authorized to promulgate any  and  all  rules  and
regulations   necessary  for  the  implementation  of  this  article  in
consultation with the  commissioners  of  the  office  for  people  with
developmental  disabilities, the office of mental health, the department
of health, and the office of temporary and disability assistance.
2. The comptroller may implement the NY ABLE savings  account  program
through  use  of third party vendors as administrators of such accounts,
and financial organizations as account depositories and managers.  Under
the  program,  eligible individuals may establish accounts directly with
an account depository.
3. The comptroller may solicit proposals from financial  organizations
to  act  as  depositories  and  managers  from  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 obtaining care for individuals with disabilities;
(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 or
maintaining 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-a. Notwithstanding the  provisions  of  subdivision  three  of  this
section,  the  comptroller  may,  in his or her discretion, enter into a
contract with the existing third party administrator of the NYS  college
choice  tuition  savings program for the purpose of administering the NY
ABLE savings account program  and  providing  account  depositories  and
managers. The term of such contract shall expire on the same date as the
contract  for  the  administration  of  the  NYS  college choice tuition
savings program expires. Following such expiration, the comptroller may,
in  his  or  her  discretion,  solicit  proposals  for  the  purpose  of
administering  the NY ABLE savings account program and solicit proposals
for the purpose of administering the NYS college choice tuition  savings
program jointly or separately.
4.  The  comptroller  may  enter  into  a  contract  with  a financial
organization. Such financial organization management may provide one  or
more types of investment instrument.
5. The comptroller may select more than one financial organization for
the program.
6.  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  84.09  of  this  article  and any actions not
contrary to  its  contract  to  manage  the  program  to  qualify  as  a
"Qualified  ABLE  account"  under  subsection  (1)  of  paragraph (b) of
section 529A 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
information as required;
(c)  compile and total information contained in statements required to
be prepared under  section  84.09  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;
(e) Provide the comptroller or his or her 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; and
(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.
7. 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.
8.  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.
9. (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.
10. The  comptroller  may  enter  into  such  contracts  as  it  deems
necessary and proper for the implementation of the program.