Bill Text: NY S06464 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to investment standards for investments of the New York State college choice tuition savings program and the New York achieving a better life experience (ABLE) savings account program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO FINANCE [S06464 Detail]
Download: New_York-2019-S06464-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6464 2019-2020 Regular Sessions IN SENATE June 12, 2019 ___________ Introduced by Sen. STAVISKY -- (at request of the State Comptroller) -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the state finance law, in relation to the investment standard for investments of the New York state college choice tuition savings program and the New York achieving a better life experience (ABLE) savings account program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph (a) of subdivision 3 of section 78 of the state 2 finance law, as amended by chapter 328 of the laws of 2003, is amended 3 to read as follows: 4 (a) The comptroller, as trustee, shall invest the assets of the trust 5 fund [in investments authorized by article four-A of the retirement and6social security law, provided however, that:7(i) the provisions of paragraph (a) of subdivision two of section one8hundred seventy-seven of the retirement and social security law shall9not apply except for the first clause of subparagraph (ii) of such para-10graph; and11(ii) notwithstanding the provisions of subdivision seven of section12one hundred seventy-seven of the retirement and social security law or13any other law to the contrary, the assets of the trust fund may be14invested in any funding agreement issued in accordance with section15three thousand two hundred twenty-two of the insurance law by a domestic16life insurance company or a foreign life insurance company doing busi-17ness in this state, subject to the following:18(1) such a funding agreement may provide for a guaranteed minimum rate19of return;20(2) such a funding agreement may be allocated as either a separate21account or a general account of the issuer, as the comptroller may22decide;EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09007-02-9S. 6464 2 1(3) total investments of the trust fund pursuant to this paragraph in2any funding agreements issued by a single life insurance company which3are allocated as a general account of the issuer shall not, in the4aggregate, exceed three hundred fifty million dollars; and5(4) no assets of the trust fund shall be invested in any such funding6agreement unless, at the time of such investment, the general obli-7gations or financial strength of the issuer have received either the8highest or second highest rating by two nationally recognized rating9services or by one nationally recognized rating service in the event10that only one such service rates such obligations] with the care, skill, 11 prudence and diligence under the circumstances then prevailing that a 12 prudent person acting in a like capacity and familiar with such matters 13 would use in the conduct of an enterprise of a like character and with 14 like aims. 15 § 2. Paragraph (a) of subdivision 3 of section 99-x of the state 16 finance law, as added by chapter 576 of the laws of 2015, is amended to 17 read as follows: 18 (a) The comptroller, as trustee, shall invest the assets of the trust 19 fund [in investments authorized by article four-A of the retirement and20social security law, provided however, that: (i) the provisions of para-21graph (a) of subdivision two of section one hundred seventy-seven of the22retirement and social security law shall not apply except for the first23clause of subparagraph (ii) of such paragraph; and (ii) notwithstanding24the provisions of subdivision seven of section one hundred seventy-seven25of the retirement and social security law or any other law to the26contrary, the assets of the trust fund may be invested in any funding27agreement issued in accordance with section three thousand two hundred28twenty-two of the insurance law by a domestic life insurance company or29a foreign life insurance company doing business in this state, subject30to the following: (1) such a funding agreement may provide for a guaran-31teed minimum rate of return; (2) such a funding agreement may be allo-32cated as either a separate account or a general account of the issuer,33as the comptroller may decide; (3) total investments of the trust fund34pursuant to this paragraph in any funding agreements issued by a single35life insurance company which are allocated as a general account of the36issuer shall not, in the aggregate, exceed three hundred fifty million37dollars; and (4) no assets of the trust fund shall be invested in any38such funding agreement unless, at the time of such investment, the39general obligations or financial strength of the issuer have received40either the highest or second highest rating by two nationally recognized41rating services or by one nationally recognized rating service in the42event that only one such service rates such obligations] with the care, 43 skill, prudence and diligence under the circumstances then prevailing 44 that a prudent person acting in a like capacity and familiar with such 45 matters would use in the conduct of an enterprise of a like character 46 and with like aims. 47 § 3. This act shall take effect immediately.