What's happening
This bill allows family tuition account funds to be withdrawn for substance use disorder treatment, including detoxification and rehabilitation.
Why it matters
Expands the definition of “qualified withdrawal” for family tuition accounts. to include funds used for substance use disorder treatment, meaning families can access these savings without penalty for such medical needs.
Makes treatment more accessible for students and beneficiaries. by allowing tuition account funds to cover detoxification, rehabilitation, and related educational programs—potentially reducing financial barriers to getting help.
Acknowledges substance use disorder as an educational and health issue,. not just a personal or criminal one, by integrating treatment costs into the same framework as college tuition and educational expenses.
Sets specific criteria for eligible treatment (at least 15 hours, including classroom instruction),. ensuring that withdrawals support substantive and structured recovery efforts, rather than unregulated or minimal interventions.
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Who cares
Headline styles
Let Tuition Accounts Fund Rehab
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to higher education
- Referred to higher education
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Let Tuition Accounts Fund Rehab
In Assembly Committee · Higher Education · Sponsor Matthew Slater
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
977
2025-2026 Regular Sessions
IN SENATE (Prefiled)
January 8, 2025
Introduced by Sen. ROLISON -- read twice and ordered printed, and when printed to be committed to the Committee on Higher Education
AN ACT to amend the education law, in relation to family tuition account withdrawals for treatment of substance use disorder
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 5 of section 695-e of the education law, as amended by chapter 593 of the laws of 2003, is amended to read as follows:
5. a. An account owner may withdraw all or part of the balance from an account on sixty days notice or such shorter period as may be authorized under rules governing the program. Such rules shall include provisions that will generally enable the determination as to whether a withdrawal is a nonqualified withdrawal or a qualified withdrawal.
b. For purposes of this subdivision, a qualified withdrawal shall include a withdrawal in which the account owner withdraws all or part of a balance from an account to fund treatment of substance use disorder, including detoxification and rehabilitation, for the designated beneficiary. Such treatment shall consist of at least fifteen hours and include, but need not be limited to, classroom instruction in areas deemed suitable by the commissioner.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01582-01-5
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the education law, in relation to family tuition account withdrawals for treatment of substance use disorder
Purpose or general idea of bill
To allow family tuition account withdrawals for substance abuse rehabil- itation.
Summary of provisions
Section 1 - Subdivision 5 of Section 695-e of the Education Law, as amended by Chapter 593 of the Laws of 2003, is amended to include as a qualified withdrawal from a family tuition account funds to pay for the designated beneficiary's treatment for alcohol or substance abuse. Mini- mum treatment parameters are set up, to qualify as a rehabilitation program.
Section 2 - States the effective date.
Justification
Approximately 1.4 million New Yorkers suffer from a substance abuse disorder. The heroin and opioid epidemic has fueled the increased need for substance abuse services in the state. In fact, the state documented a 115% increase in heroin treatment admissions in Upstate New York and a 116% increase on Long Island between the years 2005-2014, according to a 2016 report from the New York State Association of Counties.
Substance abuse services can cost anywhere from $5,000 to $50,000 a month depending on the facility and the type of treatment provided, according to DrugRehab.com. These exorbitant costs are crippling fami- lies who are willing to do whatever it takes to save their loved one's life. Media reports detail anguished families spending their life's savings, draining retirement accounts, and going into massive debt trying to save their loved ones from the clutches of addiction. Even with insurance coverage, opioid addiction treatment costs can crush a family. Americans covered by employer health insurance received $2.6 billion worth of treatment for opioid addiction and overdoses in 2016, with insurance covering approximately $2.3 billion and families paying $355 million out-of-pocket, according to a report by the Kaiser Family Foundation. More than half of this spending was for the treatment of workers children.
Parents need more options to help them pay for rehabilitative services for their children's substance abuse or alcohol dependency without going into paralyzing debt. Being able to access funds put away for college in a 529 family tuition account will go a long way into helping ,these families pay for the treatment to help their children battle the disease of addiction.
Prior legislative history
2022-23: S6729 - Referred to Education
2017-18: S8334 - Referred to Education
Fiscal implications for state and local governments
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.