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A 1477

Allows withdrawals from family tuition accounts to pay for treatment of substance use disorder for the designated beneficiary

2025 Regular Session Introduced by Keith Brown and 4 co-sponsors

Allows family tuition accounts to withdraw funds for treatment of substance use disorder of the designated beneficiary, expanding use beyond education.

REFERRED TO HIGHER EDUCATION
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Bill Summary · A 1477

Summary of New York Assembly Bill A 1477

Overview

  • Bill Number: A 1477
  • Title/Purpose: Allows withdrawals from family tuition accounts to pay for treatment of substance use disorder for the designated beneficiary.
  • Status: Referred to the Committee on Higher Education.
  • Introduced: January 10, 2025.
  • Classification: Bill (legislation).

What the bill would do

  • The bill would authorize withdrawals from family tuition accounts (typically understood as 529-like accounts) to pay for treatment of substance use disorder for the designated beneficiary of the account.
  • In effect, it expands the permissible use of funds from these accounts beyond education-related expenses to include costs associated with treatment for substance use disorders for the beneficiary named in the account.

Key provisions and changes (as implied by the title)

  • Allowance of non-educational withdrawals specifically for treatment costs tied to substance use disorder.
  • The designated beneficiary (the person named in the account for whom funds were saved) would be eligible to have funds used for treatment services.

Note: The provided information does not include the full text, definitions, or detailed conditions, so the exact scope (e.g., what constitutes permitted treatment expenses, documentation requirements, limits, penalties for improper use) is not specified here.

Who would be affected

  • Primary beneficiaries: Individuals whose family tuition accounts exist and who require treatment for substance use disorder.
  • Account holders / family members: Those who manage or contribute to these family tuition accounts would be affected by any changes in withdrawals, reporting, and use of funds.
  • Treatment providers: May see an increase in accessible funding for services covered under these withdrawals.
  • Higher Education and state programs: The committee handling such accounts would oversee any necessary rule changes or administrative adjustments.

Legislative history and timeline

  • Introduced: January 10, 2025.
  • Legislative Action: Referred to the Committee on Higher Education on January 10, 2025 (listed twice in the provided actions, but both indicate referral to the same committee).
  • Related legislation:
    • A 5748 (prior-session)
    • S 977 (companion) — listed as a companion bill in multiple places

Potential impact and considerations

  • Access to funds for treatment: Could improve affordability and access to substance use disorder treatment for designated beneficiaries by expanding eligible uses of family tuition accounts.
  • Administrative considerations: May require amendments to existing account rules, documentation standards, and oversight to prevent misuse.
  • Fiscal impact: The provided materials do not include a fiscal note; the bill could affect state-administered 529-type programs and related administrative costs.
  • Policy context: Related companion bills in the Senate (S 977) suggest parallel consideration across chambers, which may influence timing and negotiation of final language.

Related bills and context

  • A 5748 (prior-session) — potential earlier version or related approach.
  • S 977 — companion bill in the Senate (listed as a companion in multiple entries).

If you’d like, I can tailor this summary to emphasize potential fiscal impacts, implementation milestones, or compare it to existing 529 plan rules in New York.

Compiled from official sources — confirm details with the bill’s official record.

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