Relates to the transfer of funds from the tuition reimbursement account

2025 Regular Session Introduced by John Liu

Transfers of up to 500,000 from the tuition reimbursement account to the proprietary vocational school supervision account occur when the reimbursement net balance exceeds 2.5 mill

REFERRED TO WAYS AND MEANS

Bill Summary: S.9682 (2025-2026) – New York

Main purpose and intent

This bill authorizes the transfer of funds from the tuition reimbursement account to the proprietary vocational school supervision account if the tuition reimbursement account’s net balance exceeds $2,500,000 in a given state fiscal year. The transfer is capped at a maximum of $500,000 per fiscal year and requires a request by the commissioner. The measure aims to reallocate surplus funds to a related state account that oversees proprietary vocational schools.

Key provisions and changes

Amends Education Law, subdivision 10 of section 5007 by adding new paragraph i.

Trigger condition: If the net balance of the tuition reimbursement account exceeds $2,500,000 (as defined in paragraph a of subdivision 10).

Transfer authority: Upon the commissioner's request, a maximum of $500,000 may be transferred directly to the proprietary vocational school supervision account within a single state fiscal year.

Effective date: The act takes effect immediately upon enactment.

Who or what is affected

Tuition reimbursement account: Its net balance is the key metric driving the transfer mechanism.

Proprietary vocational school supervision account: Receives transfers if the trigger condition is met.

Commissioner: Responsible for requesting transfers (subject to the annual cap).

State fiscal management and oversight entities (implicit) that administer and track these accounts.

Procedural and timeline aspects

Legislative path: Introduced in the Senate by Senator Liu; referred to Higher Education, then Finance/Ways and Means as it progressed.

Current status (as of latest updates): Passed the Senate, delivered to the Assembly, and referred to Ways and Means; subsequent committee actions indicate movement toward floor consideration in the Assembly.

Effective date: Immediate upon enactment.

Notable details

Transfer cap: $500,000 per fiscal year, ensuring only a portion of surplus funds is redirected.

Trigger amount: $2,500,000 net balance threshold for the tuition reimbursement account.

The bill is an amendment to a specific subdivision (10) of section 5007, adding new paragraph i.

Potential impact and considerations

Budgetary flexibility: Creates a mechanism to reallocate excess funds from one education-related account to another that oversees private (proprietary) vocational schools, potentially supporting regulatory or supervisory activities.

Oversight and accountability: Transfers require a commissioner’s request, suggesting centralized decision-making with existing oversight aligned to the supervising account.

Fiscal planning: Institutions and agencies managing these accounts will need to monitor balances to anticipate potential transfers.

Policy implications: Signals an intent to prioritize supervisory oversight capacity for proprietary vocational schools when surplus funds accumulate in the tuition reimbursement program.

If you’d like, I can compare this bill to any related measures (e.g., prior versions or companion Assembly bill A11384) or provide a layperson’s FAQ addressing common questions about how and why transfers would occur.