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THE CITY RECORD

e Starting in the 2026-27 school year, fifth graders in a Participating City School.
From the 2026-27 school year onwards, each student at a Participating City School will be eligible to enroll in the Program from kindergarten until the last day of fifth grade. After a students last day of fifth grade, if such student is not enrolled in the Program, such student will no longer be eligible to be enrolled in the Program.
4. Charter schools within New York City that have at least one grade of eligible students pursuant to paragraphs 2 and 3 above shall have an annual opportunity to opt into the Program on behalf of their eligible students.
b. Enrollment.
1. The Participating City School will notify the students parent or guardian about the Program and manage the process for opting out prior to the students enrollment in the Program. Notification about the Program and the right to opt out may be achieved by providing it to the parent directly, or by posting the notification and opt out form in a public manner that affords the parent or guardian the opportunity to learn of the Program and choose not to participate in it, including but not limited to posting it to the Participating City Schools website, the website of the Participating City Schools school district, or on some other digital platform to which parents and guardians have been provided access.
2. The eligible students parent or guardian will have at least 30 days from the date notification was made to decide whether they wish to opt their student out of the Program. If the students parent or guardian does not opt out, the eligible student will be automatically enrolled in the Program.
3. If the eligible students parent or guardian has opted out of the Program, the eligible students parent or guardian may subsequently decide to enroll the student in the Program up until the students last day of fifth grade. The Participating City School shall manage the process for subsequently enrolling the student into the Program.
19-04 Program Benefits.
a. NYC Scholarship Accounts. The City will contract with a not-forprofit entity to create a NYC Scholarship Account for each student who is enrolled in the Program. The City will ensure that each NYC
Scholarship Account is initially allocated $100. All funds allocated to a students NYC Scholarship Account will only be distributed for the benefit of that student, and only for Qualified Higher Education Expenses. A student with a Qualified Higher Education Expense may access the funds in their NYC Scholarship Account by submitting documentation to the not-for-profit entity described in Section 19-04a, or any successor entity, reflecting an upcoming or recent Qualified Higher Education Expense incurred for the benefit of such student.
b. Incentives.
1. In addition to the initial $100 allocation, the City will ensure an additional one-time incentive of $25 will be allocated to the students NYC Scholarship Account when any of the following steps are taken prior to the students last day of fifth grade:

c. Withdrawal from Program and Use of Funds.
1. If a student has been enrolled in the Program, a students parent or guardian may withdraw the student from the Program at any time and thereby forfeit any funds allocated to the students NYC Scholarship Account. Such students parent or guardian may re-enroll the student at any time up until the students last day of fifth grade. In the case of a re-enrollment, the City will ensure that the new NYC Scholarship Account is allocated $100, but not any additional funds that were in the students previous NYC Scholarship Account. The Participating City School will manage the process for withdrawal from and reenrollment in the Program.
2. If a student with a NYC Scholarship Account moves out of New York City, such student may remain enrolled in the Program and may still benefit from their NYC Scholarship Account, but will not be able to acquire any new incentives listed above in subdivision b.
3. Any funds allocated to a students NYC Scholarship Account that are not used for a Qualified Higher Education Expense within 20
years after such student has completed kindergarten will be utilized in the Program for other participating students and will no longer be available to such student.
19-05 Appropriations. The total amount of funds allocated to NYC
Scholarship Accounts authorized by this chapter is subject to the appropriation of funds for the Program.
NEW YORK CITY MAYORS OFFICE OF OPERATIONS
253 BROADWAY, 10th FLOOR
NEW YORK, NY 10007
212-788-1400
CERTIFICATION / ANALYSIS
PURSUANT TO CHARTER SECTION 1043d RULE TITLE: Rules for Child Scholarship Accounts REFERENCE NUMBER: MO-6
RULEMAKING AGENCY: Office of the Mayor I certify that this office has analyzed the proposed rule referenced above as required by Section 1043d of the New York City Charter, and that the proposed rule referenced above:
i
Is understandable and written in plain language for the discrete regulated community or communities;

ii
Minimizes compliance costs for the discrete regulated community or communities consistent with achieving the stated purpose of the rule; and
iii Does not provide a cure period because it does not establish a violation, modification of a violation, or modification of the penalties associated with a violation.
/s/ Francisco X. Navarro Mayors Office of Operations
a The students NYC Scholarship Account is activated online;

2. If all three steps above have been taken on behalf of an eligible student, the student will be eligible for a financial matching incentive beginning on the students first day of first grade, or immediately if such student is past their first day of first grade.
For each dollar deposited into the account linked to the students NYC
Scholarship Account, the City will ensure that an additional dollar is allocated to the students NYC Scholarship Account, up to a maximum of $100. This $100 match incentive is available on a one-time basis until the students last day of fifth grade.
To be eligible for the $100 match, the funds deposited into the account linked to the students NYC Scholarship Account must be deposited:
a After the initial $5 deposit described above in paragraph 1;
b Between the students first day of first grade and the students last day of fifth grade; and c While the student is enrolled in a school managed by the Department or a charter school within New York City.
3. The above incentives are only available to students with NYC
Scholarship Accounts who are enrolled in a school managed by the Department or a charter school within New York City at the time that the applicable above step is taken.

February 15, 2022
Date
DIVISION OF LEGAL COUNSEL
100 CHURCH STREET
NEW YORK, NY 10007
212-356-4028

b A New York State 529 College Savings Program Direct Plan account, or any similar savings account that can be linked to a students NYC Scholarship Account via a partnership with the not-forprofit entity described above in subdivision a, is linked to the students NYC Scholarship Account; and c At least $5 is deposited into the account linked to the students NYC
Scholarship Account.

FRIDAY, FEBRUARY 18, 2022

CERTIFICATION PURSUANT TO
CHARTER 1043d RULE TITLE: Rules for Child Scholarship Accounts REFERENCE NUMBER: 2022 RG 007
RULEMAKING AGENCY: Office of the Mayor of New York City I certify that this office has reviewed the above-referenced proposed rule as required by section 1043d of the New York City Charter, and that the above-referenced proposed rule:
i
is drafted so as to accomplish the purpose of the authorizing provisions of law;

ii
is not in conflict with other applicable rules;

iii
to the extent practicable and appropriate, is narrowly drawn to achieve its stated purpose; and
iv
to the extent practicable and appropriate, contains a statement of basis and purpose that provides a clear explanation of the rule and the requirements imposed by the rule.

/s/
STEVEN L. GOULDEN
Acting Corporation Counsel
Date: February 15, 2022

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