S50002 Summary:

BILL NO    S50002 

SAME AS    SAME AS UNI. A40002

SPONSOR    BUDGET

COSPNSR    

MLTSPNSR   

Amd Tax L, generally; add S25-a, Lab L; add Art 20 SS420 - 429, Ec Dev L; add
S1326-b, RPT L; amd S182, Exec L; amd S13, Chap 260 of 2011

Relates to enacting into law major components of law necessary to the state;
relates to tax rates and exclusions under the metropolitan commuter
transportation mobility tax; relates to tax rates imposed on NY manufacturers;
establishes a youth works tax credit; establishes the empire state jobs
retention program; establishes the infrastructure investment act; enacts
Hurricane Irene and Tropical storm Lee assessment relief and flood recover
program; prohibits MTA funds diversion; requires compliance with project labor
agreements under NY-SUNY 2020 challenge grant program.
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S50002 Actions:

BILL NO    S50002 

12/07/2011 REFERRED TO FINANCE
12/07/2011 ORDERED TO THIRD READING CAL.2
12/07/2011 MESSAGE OF NECESSITY
12/07/2011 PASSED SENATE
12/07/2011 DELIVERED TO ASSEMBLY
12/07/2011 referred to ways and means
12/07/2011 substituted for a40002
12/07/2011 ordered to third reading rules cal.2
12/07/2011 motion to amend lost
12/07/2011 motion to amend lost
12/07/2011 message of necessity - 3 day message
12/07/2011 passed assembly
12/07/2011 returned to senate
12/08/2011 DELIVERED TO GOVERNOR
12/09/2011 SIGNED CHAP.56
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S50002 Memo:

Memo not available
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S50002 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

           S. 2                                                        A. 2

                                 Extraordinary Session

                             S E N A T E - A S S E M B L Y

                                   December 7, 2011
                                      ___________

       IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
         cle seven of the Constitution -- read twice and ordered  printed,  and
         when printed to be committed to the Committee on Finance

       IN  ASSEMBLY  --  A  BUDGET  BILL, submitted by the Governor pursuant to
         article seven of the Constitution -- read once  and  referred  to  the
         Committee on Ways and Means

       AN  ACT  to  amend the tax law, in relation to personal income tax rates
         and benefit recapture and repealing certain  provisions  of  such  law
         relating  thereto  (Part  A); to amend the tax law, in relation to the
         tax rates and exclusions under the metropolitan  commuter  transporta-
         tion  mobility  tax (Part B); to amend the tax law, in relation to tax
         rates imposed on New York manufacturers (Part C); to amend  the  labor
         law  and  the  tax law, in relation to establishing the New York youth
         works tax credit program (Part D); to amend the  economic  development
         law  and  the  tax  law, in relation to creating the empire state jobs
         retention program (Part E); to permit  authorized  state  entities  to
         utilize  the  design-build  method  for  infrastructure  projects; and
         providing for the repeal of such provisions  upon  expiration  thereof
         (Part  F);  to  establish  the  Hurricane Irene and Tropical Storm Lee
         assessment relief act (Part G); to create the Hurricane Irene-Tropical
         Storm Lee Flood Recovery Grant Program (Part H);  to  amend  the  real
         property  tax  law,  in  relation  to  authorizing school districts to
         permit installment payments of real property taxes in  certain  school
         districts  affected  by floods or natural disasters; and providing for
         the repeal of certain provisions upon the expiration thereof (Part I);
         to amend the executive law, in relation to a prohibition on  diversion
         of funds dedicated to the metropolitan transportation authority or the
         New  York  city  transit authority and any of their subsidiaries (Part
         J); and to amend chapter 260 of the laws of 2011, relating  to  estab-
         lishing  components  of  the  NY-SUNY 2020 challenge grant program, in
         relation to requiring compliance with project labor  agreements  (Part
         K)

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD12105-01-1
       S. 2                                2                               A. 2

         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section  1.   This act enacts into law major components of legislation
    2  relating to issues deemed necessary for the state.   Each  component  of
    3  this act is wholly contained within a Part identified as Parts A through
    4  K.  The  effective  date  for each particular provision contained within
    5  such Part is set forth in the last section of such Part.  Any  provision
    6  in  any section contained within a Part, including the effective date of
    7  the Part, which makes reference to a section "of this act", when used in
    8  connection with that particular component, shall be deemed to  mean  and
    9  refer  to  the  corresponding  section of the Part in which it is found.
   10  Section three of this act sets forth the general effective date of  this
   11  act.

   12                                   PART A

   13    Section 1. Paragraph 1 of subsection (a) of section 601 of the tax law
   14  is renumbered to be paragraph 1-a and a new paragraph 1 is added to read
   15  as follows:
   16    (1)  (A)  FOR  TAXABLE  YEARS  BEGINNING AFTER TWO THOUSAND ELEVEN AND
   17  BEFORE TWO THOUSAND FIFTEEN:

   18  IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
   19  NOT OVER $16,000                      4% OF TAXABLE INCOME
   20  OVER $16,000 BUT NOT OVER $22,000     $640 PLUS 4.5% OF EXCESS OVER
   21                                        $16,000
   22  OVER $22,000 BUT NOT OVER $26,000     $910 PLUS 5.25% OF EXCESS OVER
   23                                        $22,000
   24  OVER $26,000 BUT NOT OVER $40,000     $1,120 PLUS 5.90% OF EXCESS OVER
   25                                        $26,000
   26  OVER $40,000 BUT NOT OVER $150,000    $1,946 PLUS 6.45% OF EXCESS OVER
   27                                        $40,000
   28  OVER $150,000 BUT NOT OVER $300,000   $9,041 PLUS 6.65% OF EXCESS OVER
   29                                        $150,000
   30  OVER $300,000 BUT NOT OVER $2,000,000 $19,016 PLUS 6.85% OF EXCESS OVER
   31                                        $300,000
   32  OVER $2,000,000                       $135,466 PLUS 8.82% OF EXCESS OVER
   33                                        $2,000,000

   34    (B) FOR TAXABLE YEARS  BEGINNING  AFTER  TWO  THOUSAND  FOURTEEN,  THE
   35  FOLLOWING  BRACKETS  AND  DOLLAR AMOUNTS SHALL APPLY, AS ADJUSTED BY THE
   36  COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION  SIX  HUNDRED  ONE-A  OF
   37  THIS PART FOR TAX YEARS TWO THOUSAND THIRTEEN AND TWO THOUSAND FOURTEEN:

   38  IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
   39  NOT OVER $16,000                      4% OF TAXABLE INCOME
   40  OVER $16,000 BUT NOT OVER $22,000     $640 PLUS 4.5% OF EXCESS OVER
   41                                        $16,000
   42  OVER $22,000 BUT NOT OVER $26,000     $910 PLUS 5.25% OF EXCESS OVER
   43                                        $22,000
   44  OVER $26,000 BUT NOT OVER $40,000     $1,120 PLUS 5.90% OF EXCESS OVER
   45                                        $26,000
   46  OVER $40,000                          $1,946 PLUS 6.85% OF EXCESS OVER
   47                                        $40,000
       S. 2                                3                               A. 2

    1    S 2. The opening paragraph of paragraph 2 of subsection (a) of section
    2  601 of the tax law, as amended by section 1 of part Z-1 of chapter 57 of
    3  the laws of 2009, is amended to read as follows:
    4    For  taxable  years  beginning  after two thousand five and before two
    5  thousand nine [and after two thousand eleven]:
    6    S 3. Paragraph 1 of subsection (b) of section 601 of the  tax  law  is
    7  renumbered to be paragraph 1-a and a new paragraph 1 is added to read as
    8  follows:
    9    (1)  (A)  FOR  TAXABLE  YEARS  BEGINNING AFTER TWO THOUSAND ELEVEN AND
   10  BEFORE TWO THOUSAND FIFTEEN:

   11  IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:

   12  NOT OVER $12,000                      4% OF TAXABLE INCOME
   13  OVER $12,000 BUT NOT OVER $16,500     $480 PLUS 4.5% OF EXCESS OVER
   14                                        $12,000
   15  OVER $16,500 BUT NOT OVER $19,500     $683 PLUS 5.25% OF EXCESS OVER
   16                                        $16,500
   17  OVER $19,500 BUT NOT OVER $30,000     $840 PLUS 5.90% OF EXCESS OVER
   18                                        $19,500
   19  OVER $30,000 BUT NOT OVER $100,000    $1,460 PLUS 6.45% OF EXCESS OVER
   20                                        $30,000
   21  OVER $100,000 BUT NOT OVER $250,000   $5,975 PLUS 6.65% OF EXCESS OVER
   22                                        $100,000
   23  OVER $250,000 BUT NOT OVER $1,500,000 $15,950 PLUS 6.85% OF EXCESS OVER
   24                                        $250,000
   25  OVER $1,500,000                       $101,575 PLUS 8.82% OF EXCESS OVER
   26                                        $1,500,000

   27    (B) FOR TAXABLE YEARS  BEGINNING  AFTER  TWO  THOUSAND  FOURTEEN,  THE
   28  FOLLOWING  BRACKETS  AND DOLLARS AMOUNTS SHALL APPLY, AS ADJUSTED BY THE
   29  COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION  SIX  HUNDRED  ONE-A  OF
   30  THIS PART FOR TAX YEARS TWO THOUSAND THIRTEEN AND TWO THOUSAND FOURTEEN:

   31  IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
   32  NOT OVER $12,000                      4% OF TAXABLE INCOME
   33  OVER $12,000 BUT NOT OVER $16,500     $480 PLUS 4.5% OF EXCESS OVER
   34                                        $12,000
   35  OVER $16,500 BUT NOT OVER $19,500     $683 PLUS 5.25% OF EXCESS OVER
   36                                        $16,500
   37  OVER $19,500 BUT NOT OVER $30,000     $840 PLUS 5.90% OF EXCESS OVER
   38                                        $19,500
   39  OVER $30,000                          $1,460 PLUS 6.85% OF EXCESS OVER
   40                                        $30,000

   41    S 4. The opening paragraph of paragraph 2 of subsection (b) of section
   42  601 of the tax law, as amended by section 1 of part Z-1 of chapter 57 of
   43  the laws of 2009, is amended to read as follows:
   44    For  taxable  years  beginning  after two thousand five and before two
   45  thousand nine [and after two thousand eleven]:
   46    S 5. Paragraph 1 of subsection (c) of section 601 of the  tax  law  is
   47  renumbered to be paragraph 1-a and a new paragraph 1 is added to read as
   48  follows:
   49    (1)  (A)  FOR  TAXABLE  YEARS  BEGINNING AFTER TWO THOUSAND ELEVEN AND
   50  BEFORE TWO THOUSAND FIFTEEN:
       S. 2                                4                               A. 2

    1  IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
    2  NOT OVER $8,000                       4% OF TAXABLE INCOME
    3  OVER $8,000 BUT NOT OVER $11,000      $320 PLUS 4.5% OF EXCESS OVER
    4                                        $8,000
    5  OVER $11,000 BUT NOT OVER $13,000     $455 PLUS 5.25% OF EXCESS OVER
    6                                        $11,000
    7  OVER $13,000 BUT NOT OVER $20,000     $560 PLUS 5.90% OF EXCESS OVER
    8                                        $13,000
    9  OVER $20,000 BUT NOT OVER $75,000     $973 PLUS 6.45% OF EXCESS OVER
   10                                        $20,000
   11  OVER $75,000 BUT NOT OVER $200,000    $4,521 PLUS 6.65% OF EXCESS OVER
   12                                        $75,000
   13  OVER $200,000 BUT NOT OVER $1,000,000 $12,833 PLUS 6.85% OF EXCESS OVER
   14                                        $200,000
   15  OVER $1,000,000                       $67,633 PLUS 8.82% OF EXCESS OVER
   16                                        $1,000,000

   17    (B)  FOR  TAXABLE  YEARS  BEGINNING  AFTER  TWO THOUSAND FOURTEEN, THE
   18  FOLLOWING BRACKETS AND DOLLARS AMOUNTS SHALL APPLY, AS ADJUSTED  BY  THE
   19  COST  OF  LIVING  ADJUSTMENT  PRESCRIBED IN SECTION SIX HUNDRED ONE-A OF
   20  THIS PART FOR TAX YEARS TWO THOUSAND THIRTEEN AND TWO THOUSAND FOURTEEN:

   21  IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
   22  NOT OVER $8,000                       4% OF TAXABLE INCOME
   23  OVER $8,000 BUT NOT OVER $11,000      $320 PLUS 4.5% OF EXCESS OVER
   24                                        $8,000
   25  OVER $11,000 BUT NOT OVER $13,000     $455 PLUS 5.25% OF EXCESS OVER
   26                                        $11,000
   27  OVER $13,000 BUT NOT OVER $20,000     $560 PLUS 5.90% OF EXCESS OVER
   28                                        $13,000
   29  OVER $20,000                          $973 PLUS 6.85% OF EXCESS OVER
   30                                        $20,000

   31    S 6. The opening paragraph of paragraph 2 of subsection (c) of section
   32  601 of the tax law, as amended by section 1 of part Z-1 of chapter 57 of
   33  the laws of 2009, is amended to read as follows:
   34    For taxable years beginning after two thousand  five  and  before  two
   35  thousand nine [and after two thousand eleven]:
   36    S  7. Section 601 of the tax law is amended by adding a new subsection
   37  (d-1) to read as follows:
   38    (D-1) ALTERNATIVE TAX TABLE  BENEFIT  RECAPTURE.  NOTWITHSTANDING  THE
   39  PROVISIONS  OF  SUBSECTION (D) OF THIS SECTION, FOR TAXABLE YEARS BEGIN-
   40  NING AFTER TWO THOUSAND ELEVEN AND BEFORE TWO THOUSAND FIFTEEN, THERE IS
   41  HEREBY IMPOSED A SUPPLEMENTAL TAX IN ADDITION TO THE TAX  IMPOSED  UNDER
   42  SUBSECTIONS  (A),  (B) AND (C) OF THIS SECTION FOR THE PURPOSE OF RECAP-
   43  TURING THE BENEFIT OF THE TAX  TABLES  CONTAINED  IN  SUCH  SUBSECTIONS.
   44  DURING  THESE TAXABLE YEARS, ANY REFERENCE IN THIS CHAPTER TO SUBSECTION
   45  (D) OF THIS SECTION SHALL BE READ AS A REFERENCE TO THIS SUBSECTION.
   46    (1) FOR RESIDENT MARRIED INDIVIDUALS FILING JOINT RETURNS AND RESIDENT
   47  SURVIVING SPOUSES, THE SUPPLEMENTAL TAX SHALL BE AN AMOUNT EQUAL TO  THE
   48  SUM  OF  THE TAX TABLE BENEFITS DESCRIBED IN SUBPARAGRAPHS (A), (B), (C)
   49  AND (D) OF THIS PARAGRAPH MULTIPLIED BY THEIR  RESPECTIVE  FRACTIONS  IN
   50  SUCH SUBPARAGRAPHS.
   51    (A)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
   52  TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
   53  (A) OF THIS SECTION NOT SUBJECT TO THE 6.45 PERCENT RATE OF TAX FOR  THE
       S. 2                                5                               A. 2

    1  TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
    2  FOR  SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE
    3  TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS  SECTION.
    4  THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR
    5  IS  THE  LESSER  OF  FIFTY  THOUSAND  DOLLARS  OR THE EXCESS OF NEW YORK
    6  ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR  OVER  ONE  HUNDRED  THOUSAND
    7  DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.
    8    (B)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
    9  TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
   10  (A) OF THIS SECTION NOT SUBJECT TO THE 6.65 PERCENT RATE OF TAX FOR  THE
   11  TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
   12  FOR  SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE
   13  TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF  THIS  SECTION
   14  LESS  THE  TAX  TABLE BENEFIT IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. THE
   15  FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS:  THE NUMERATOR IS
   16  THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK  ADJUSTED
   17  GROSS  INCOME  FOR  THE  TAXABLE  YEAR  OVER  ONE HUNDRED FIFTY THOUSAND
   18  DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. PROVIDED,  HOWEV-
   19  ER,  THIS  SUBPARAGRAPH SHALL NOT APPLY TO TAXPAYERS WHO ARE NOT SUBJECT
   20  TO THE 6.65 PERCENT TAX RATE.
   21    (C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
   22  TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
   23  (A)  OF THIS SECTION NOT SUBJECT TO THE 6.85 PERCENT RATE OF TAX FOR THE
   24  TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
   25  FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE  APPLICABLE
   26  TO  THE  TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION
   27  LESS THE SUM OF THE TAX TABLE BENEFIT IN SUBPARAGRAPHS (A)  AND  (B)  OF
   28  THIS  PARAGRAPH.  THE  FRACTION  FOR  THIS  SUBPARAGRAPH  IS COMPUTED AS
   29  FOLLOWS:  THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS  OR  THE
   30  EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER THREE
   31  HUNDRED  THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.
   32  PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL NOT APPLY  TO  TAXPAYERS  WHO
   33  ARE NOT SUBJECT TO THE 6.85 PERCENT TAX RATE.
   34    (D)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
   35  TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
   36  (A) OF THIS SECTION NOT SUBJECT TO THE 8.82 PERCENT RATE OF TAX FOR  THE
   37  TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
   38  FOR  SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE
   39  TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF  THIS  SECTION
   40  LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B) AND (C)
   41  OF  THIS  PARAGRAPH.  THE  FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS
   42  FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND  DOLLARS  OR  THE
   43  EXCESS  OF  NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER TWO
   44  MILLION DOLLARS AND THE DENOMINATOR  IS  FIFTY  THOUSAND  DOLLARS.  THIS
   45  SUBPARAGRAPH  SHALL  APPLY  ONLY  TO TAXABLE YEARS BEGINNING ON OR AFTER
   46  JANUARY FIRST, TWO THOUSAND TWELVE AND BEFORE JANUARY FIRST,  TWO  THOU-
   47  SAND FIFTEEN.
   48    (E)  PROVIDED,  HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY
   49  TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET  FORTH  IN  THE
   50  TAX  TABLES  IN SUBSECTION (A) OF THIS SECTION MULTIPLIED BY THE TAXPAY-
   51  ER'S TAXABLE INCOME.
   52    (2) FOR RESIDENT HEADS OF HOUSEHOLDS, THE SUPPLEMENTAL TAX SHALL BE AN
   53  AMOUNT EQUAL TO THE SUM OF THE TAX TABLE BENEFITS DESCRIBED IN  SUBPARA-
   54  GRAPHS (A), (B) AND (C) OF THIS PARAGRAPH MULTIPLIED BY THEIR RESPECTIVE
   55  FRACTIONS IN SUCH SUBPARAGRAPHS.
       S. 2                                6                               A. 2

    1    (A)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
    2  TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
    3  (B) OF THIS SECTION NOT SUBJECT TO THE 6.65 PERCENT RATE OF TAX FOR  THE
    4  TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
    5  FOR  SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE
    6  TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS  SECTION.
    7  THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR
    8  IS  THE  LESSER  OF  FIFTY  THOUSAND  DOLLARS  OR THE EXCESS OF NEW YORK
    9  ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR  OVER  ONE  HUNDRED  THOUSAND
   10  DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.
   11    (B)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
   12  TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
   13  (B) OF THIS SECTION NOT SUBJECT TO THE 6.85 PERCENT RATE OF TAX FOR  THE
   14  TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
   15  FOR  SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE
   16  TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF  THIS  SECTION
   17  LESS  THE  TAX  TABLE BENEFIT IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. THE
   18  FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS:  THE NUMERATOR IS
   19  THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK  ADJUSTED
   20  GROSS  INCOME  FOR  THE  TAXABLE  YEAR  OVER  TWO HUNDRED FIFTY THOUSAND
   21  DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. PROVIDED,  HOWEV-
   22  ER,  THIS  SUBPARAGRAPH SHALL NOT APPLY TO TAXPAYERS WHO ARE NOT SUBJECT
   23  TO THE 6.85 PERCENT TAX RATE.
   24    (C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
   25  TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
   26  (B)  OF THIS SECTION NOT SUBJECT TO THE 8.82 PERCENT RATE OF TAX FOR THE
   27  TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
   28  FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE  APPLICABLE
   29  TO  THE  TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION
   30  LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND  (B)  OF
   31  THIS  PARAGRAPH.  THE  FRACTION  FOR  THIS  SUBPARAGRAPH  IS COMPUTED AS
   32  FOLLOWS:  THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS  OR  THE
   33  EXCESS  OF  NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE
   34  MILLION FIVE HUNDRED THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOU-
   35  SAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY ONLY TO TAXABLE YEARS BEGIN-
   36  NING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE AND  BEFORE  JANUARY
   37  FIRST, TWO THOUSAND FIFTEEN.
   38    (D)  PROVIDED,  HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY
   39  TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET  FORTH  IN  THE
   40  TAX  TABLES  IN SUBSECTION (B) OF THIS SECTION MULTIPLIED BY THE TAXPAY-
   41  ER'S TAXABLE INCOME.
   42    (3) FOR RESIDENT UNMARRIED INDIVIDUALS, RESIDENT  MARRIED  INDIVIDUALS
   43  FILING  SEPARATE  RETURNS  AND  RESIDENT ESTATES AND TRUSTS, THE SUPPLE-
   44  MENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE SUM OF THE TAX TABLE BENEFITS
   45  DESCRIBED IN SUBPARAGRAPHS (A), (B) AND (C) OF THIS PARAGRAPH MULTIPLIED
   46  BY THEIR RESPECTIVE FRACTIONS IN SUCH SUBPARAGRAPHS.
   47    (A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
   48  TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
   49  (C)  OF THIS SECTION NOT SUBJECT TO THE 6.65 PERCENT RATE OF TAX FOR THE
   50  TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
   51  FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE  APPLICABLE
   52  TO  THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION.
   53  THE FRACTION IS COMPUTED AS FOLLOWS: THE  NUMERATOR  IS  THE  LESSER  OF
   54  FIFTY  THOUSAND  DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME
   55  FOR THE TAXABLE YEAR OVER ONE HUNDRED THOUSAND DOLLARS AND THE DENOMINA-
   56  TOR IS FIFTY THOUSAND DOLLARS.
       S. 2                                7                               A. 2

    1    (B) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
    2  TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
    3  (C)  OF THIS SECTION NOT SUBJECT TO THE 6.85 PERCENT RATE OF TAX FOR THE
    4  TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
    5  FOR  SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE
    6  TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF  THIS  SECTION
    7  LESS  THE  TAX  TABLE BENEFIT IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. THE
    8  FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS:  THE NUMERATOR IS
    9  THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK  ADJUSTED
   10  GROSS  INCOME FOR THE TAXABLE YEAR OVER TWO HUNDRED THOUSAND DOLLARS AND
   11  THE DENOMINATOR IS  FIFTY  THOUSAND  DOLLARS.  PROVIDED,  HOWEVER,  THIS
   12  SUBPARAGRAPH  SHALL  NOT  APPLY  TO TAXPAYERS WHO ARE NOT SUBJECT TO THE
   13  6.85 PERCENT TAX RATE.
   14    (C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
   15  TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
   16  (C)  OF THIS SECTION NOT SUBJECT TO THE 8.82 PERCENT RATE OF TAX FOR THE
   17  TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
   18  FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE  APPLICABLE
   19  TO  THE  TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION
   20  LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND  (B)  OF
   21  THIS  PARAGRAPH.  THE  FRACTION  FOR  THIS  SUBPARAGRAPH  IS COMPUTED AS
   22  FOLLOWS:  THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS  OR  THE
   23  EXCESS  OF  NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE
   24  MILLION DOLLARS AND THE DENOMINATOR  IS  FIFTY  THOUSAND  DOLLARS.  THIS
   25  SUBPARAGRAPH  SHALL  APPLY  ONLY  TO TAXABLE YEARS BEGINNING ON OR AFTER
   26  JANUARY FIRST, TWO THOUSAND TWELVE AND BEFORE JANUARY FIRST,  TWO  THOU-
   27  SAND FIFTEEN.
   28    (D)  PROVIDED,  HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY
   29  TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET  FORTH  IN  THE
   30  TAX  TABLES  IN SUBSECTION (C) OF THIS SECTION MULTIPLIED BY THE TAXPAY-
   31  ER'S TAXABLE INCOME.
   32    S 8. Section 601 of the tax law is amended by adding a new  subsection
   33  (d-2) to read as follows:
   34    (D-2)  TAX  TABLE  BENEFIT  RECAPTURE FOR TAX YEARS AFTER TWO THOUSAND
   35  FOURTEEN. FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN, THERE
   36  IS HEREBY IMPOSED A SUPPLEMENTAL TAX IN  ADDITION  TO  THE  TAX  IMPOSED
   37  UNDER  SUBSECTIONS  (A),  (B) AND (C) OF THIS SECTION FOR THE PURPOSE OF
   38  RECAPTURING THE BENEFIT OF THE TAX TABLES CONTAINED IN SUCH SUBSECTIONS.
   39  THE SUPPLEMENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE  TABLE  BENEFIT  IN
   40  PARAGRAPH  ONE  OF  THIS  SUBSECTION  MULTIPLIED BY THE FRACTION IN SUCH
   41  PARAGRAPH. ANY REFERENCE IN THIS  CHAPTER  TO  SUBSECTION  (D)  OF  THIS
   42  SECTION SHALL BE READ AS A REFERENCE TO THIS SUBSECTION.
   43    (1)  RESIDENT  MARRIED  INDIVIDUALS  FILING  JOINT  RETURNS,  RESIDENT
   44  SURVIVING SPOUSES, RESIDENT  HEADS  OF  HOUSEHOLDS,  RESIDENT  UNMARRIED
   45  INDIVIDUALS,  RESIDENT  MARRIED  INDIVIDUALS FILING SEPARATE RETURNS AND
   46  RESIDENT ESTATES AND TRUSTS.
   47    (A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
   48  TAXABLE INCOME SET FORTH IN THE TAX TABLE IN SUBSECTION (A), (B) OR (C),
   49  OF  THIS  SECTION,  NOT  SUBJECT TO THE 6.85 PERCENT RATE OF TAX FOR THE
   50  TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
   51  FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE  APPLICABLE
   52  TO THE TAXABLE YEAR IN SUBSECTION (A), (B) OR (C) OF THIS SECTION.
   53    (B)  THE  FRACTION IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER
   54  OF FIFTY THOUSAND DOLLARS OR THE  EXCESS  OF  NEW  YORK  ADJUSTED  GROSS
   55  INCOME  FOR  THE TAXABLE YEAR OVER ONE HUNDRED THOUSAND DOLLARS (AS SUCH
   56  AMOUNT IS ADJUSTED BY  THE  COST  OF  LIVING  ADJUSTMENT  PRESCRIBED  IN
       S. 2                                8                               A. 2

    1  SECTION  SIX HUNDRED ONE-A OF THIS PART FOR TAX YEARS TWO THOUSAND THIR-
    2  TEEN AND TWO THOUSAND FOURTEEN) AND THE DENOMINATOR  IS  FIFTY  THOUSAND
    3  DOLLARS.
    4    S  9.  The tax law is amended by adding a new section 601-a to read as
    5  follows:
    6    S 601-A. COST OF LIVING ADJUSTMENT. (A)  FOR  TAX  YEAR  TWO  THOUSAND
    7  THIRTEEN, THE COMMISSIONER, NOT LATER THAN SEPTEMBER FIRST, TWO THOUSAND
    8  TWELVE,  SHALL  MULTIPLY THE AMOUNTS SPECIFIED IN SUBSECTION (B) OF THIS
    9  SECTION FOR TAX YEAR TWO THOUSAND TWELVE BY ONE PLUS THE COST OF  LIVING
   10  ADJUSTMENT DESCRIBED IN SUBSECTION (C) OF THIS SECTION. FOR TAX YEAR TWO
   11  THOUSAND FOURTEEN, THE COMMISSIONER, NOT LATER THAN SEPTEMBER FIRST, TWO
   12  THOUSAND  THIRTEEN,  SHALL  MULTIPLY THE AMOUNTS SPECIFIED IN SUBSECTION
   13  (B) OF THIS SECTION FOR TAX YEAR TWO THOUSAND THIRTEEN BY ONE  PLUS  THE
   14  COST OF LIVING ADJUSTMENT.
   15    (B)  THE  FOLLOWING  AMOUNTS  SHALL  BE  INDEXED BY THE COST OF LIVING
   16  ADJUSTMENT.
   17    (1) THE DOLLAR AMOUNTS IN THE TAX TABLES SET FORTH IN PARAGRAPH ONE OF
   18  SUBSECTION (A), PARAGRAPH ONE OF SUBSECTION (B)  AND  PARAGRAPH  ONE  OF
   19  SUBSECTION (C) OF SECTION SIX HUNDRED ONE OF THIS PART.
   20    (2)  THE DOLLAR AMOUNT IN THE NUMERATOR OF THE FRACTIONS IN SUBSECTION
   21  (D) OF SECTION SIX HUNDRED ONE OF THIS PART THAT IS NOT  FIFTY  THOUSAND
   22  DOLLARS.
   23    (3)  THE  NEW  YORK  STANDARD  DEDUCTION  OF  A RESIDENT INDIVIDUAL IN
   24  SECTION SIX HUNDRED FOURTEEN OF THIS ARTICLE.
   25    (C) THE COST OF LIVING ADJUSTMENT FOR A TAX YEAR IS THE PERCENTAGE  IF
   26  ANY,  BY WHICH THE AVERAGE MONTHLY VALUE OF THE CONSUMER PRICE INDEX FOR
   27  THE TWELVE MONTH PERIOD ENDING ON JUNE THIRTIETH OF THE YEAR IMMEDIATELY
   28  PRECEDING THE TAX YEAR FOR WHICH THE ADJUSTMENT IS BEING MADE  (REFERRED
   29  TO  AS  THE  ADJUSTMENT  YEAR)  EXCEEDS THE AVERAGE MONTHLY VALUE OF THE
   30  CONSUMER PRICE INDEX FOR THE TWELVE MONTH PERIOD ENDING ON JUNE  THIRTI-
   31  ETH OF THE YEAR IMMEDIATELY PRECEDING THE ADJUSTMENT YEAR.  FOR PURPOSES
   32  OF THIS SECTION, THE CONSUMER PRICE INDEX MEANS THE CONSUMER PRICE INDEX
   33  FOR  ALL  URBAN  CONSUMERS  PUBLISHED BY THE UNITED STATES DEPARTMENT OF
   34  LABOR.
   35    (D) IF THE PRODUCT OF THE AMOUNTS IN SUBSECTION (B) AND SUBSECTION (C)
   36  OF THIS SECTION IS NOT A MULTIPLE OF FIFTY DOLLARS, SUCH INCREASE  SHALL
   37  BE ROUNDED TO THE NEXT LOWEST MULTIPLE OF FIFTY DOLLARS.
   38    S 10. Section 614 of the tax law is amended by adding a new subsection
   39  (f) to read as follows:
   40    (F) ADJUSTED STANDARD DEDUCTION. FOR TAXABLE YEARS BEGINNING AFTER TWO
   41  THOUSAND  FOURTEEN,  THE  STANDARD  DEDUCTIONS SET FORTH IN THIS SECTION
   42  SHALL BE ADJUSTED BY THE COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION
   43  SIX HUNDRED ONE-A OF THIS PART FOR TAX YEARS TWO THOUSAND  THIRTEEN  AND
   44  TWO THOUSAND FOURTEEN.
   45    S 11. Notwithstanding any provision of law to the contrary, the method
   46  of  determining  the  amount  to  be deducted and withheld from wages on
   47  account of taxes imposed by or pursuant to the authority of  article  22
   48  of  the  tax law in connection with the implementation of the provisions
   49  of this act shall be prescribed by regulations of  the  commissioner  of
   50  taxation and finance with due consideration to the effect such withhold-
   51  ing  tables and methods would have on the receipt and amount of revenue.
   52  The commissioner of taxation and finance shall adjust  such  withholding
   53  tables  and  methods  in  regard  to taxable years beginning in 2012 and
   54  after in such manner as to result, so far as practicable, in withholding
   55  from an employee's wages an amount substantially equivalent to  the  tax
   56  reasonably estimated to be due for such taxable years as a result of the
       S. 2                                9                               A. 2

    1  provisions  of  this  act. Any such regulations to implement a change in
    2  withholding tables and methods for tax year 2012 shall  be  adopted  and
    3  effective  as  soon  as practicable and the commissioner of taxation and
    4  finance may adopt such regulations on an emergency basis notwithstanding
    5  anything  to  the  contrary  in  section 202 of the state administrative
    6  procedure act. The commissioner of taxation and finance, in carrying out
    7  the duties and responsibilities under this section, may accompany such a
    8  rule making procedure with a similar procedure with respect to the taxes
    9  required to be deducted and withheld by local laws imposing taxes pursu-
   10  ant to the authority of articles 30, 30-A and 30-B of the tax  law,  the
   11  provisions  of  any  other  law  in  relation to such a procedure to the
   12  contrary notwithstanding. The withholding tables  and  methods  for  tax
   13  years 2013 and 2014 shall not be prescribed by regulation, notwithstand-
   14  ing  any  provision  of  the  state  administrative procedure act to the
   15  contrary.
   16    S 12. This act shall take effect immediately.

   17                                   PART B

   18    Section 1. Subsection (b) of section 800 of the tax law, as  added  by
   19  section  1  of  part  C of chapter 25 of the laws of 2009, is amended to
   20  read as follows:
   21    (b) Employer. Employer means  an  employer  required  by  section  six
   22  hundred  seventy-one  of  this  chapter  to deduct and withhold tax from
   23  wages, that has a payroll expense  in  excess  of  [two]  THREE  HUNDRED
   24  TWELVE thousand five hundred dollars in any calendar quarter; other than
   25    (1) any agency or instrumentality of the United States;
   26    (2) the United Nations; [or]
   27    (3)  an interstate agency or public corporation created pursuant to an
   28  agreement or compact with another state or the Dominion of Canada[.]; OR
   29    (4) ANY ELIGIBLE EDUCATIONAL  INSTITUTION.  AN  "ELIGIBLE  EDUCATIONAL
   30  INSTITUTION"  SHALL  MEAN ANY PUBLIC SCHOOL DISTRICT, A BOARD OF COOPER-
   31  ATIVE EDUCATIONAL SERVICES, A PUBLIC ELEMENTARY OR SECONDARY  SCHOOL,  A
   32  SCHOOL  APPROVED  PURSUANT  TO ARTICLE EIGHTY-FIVE OR EIGHTY-NINE OF THE
   33  EDUCATION LAW TO SERVE STUDENTS WITH DISABILITIES OF SCHOOL  AGE,  OR  A
   34  NONPUBLIC  ELEMENTARY  OR  SECONDARY SCHOOL THAT PROVIDES INSTRUCTION IN
   35  GRADE ONE OR ABOVE.
   36    S 2. Subsection (a) of section 801 of the tax law, as added by section
   37  1 of part C of chapter 25 of the laws of 2009, is  amended  to  read  as
   38  follows:
   39    (a)  For  the sole purpose of providing an additional stable and reli-
   40  able  dedicated  funding  source  for  the  metropolitan  transportation
   41  authority  and  its subsidiaries and affiliates to preserve, operate and
   42  improve essential transit and transportation services in  the  metropol-
   43  itan  commuter  transportation  district,  a tax is hereby imposed [at a
   44  rate of thirty-four hundredths (.34) percent of (1) the payroll  expense
   45  of every employer who engages] ON EMPLOYERS WHO ENGAGE in business with-
   46  in  the  MCTD  (1)  AT A RATE OF (A) ELEVEN HUNDREDTHS (.11) PERCENT FOR
   47  EMPLOYERS  WITH  PAYROLL  EXPENSE  NO   GREATER   THAN   THREE   HUNDRED
   48  SEVENTY-FIVE  THOUSAND DOLLARS IN ANY CALENDAR QUARTER, (B) TWENTY-THREE
   49  HUNDREDTHS (.23) PERCENT FOR EMPLOYERS WITH PAYROLL EXPENSE GREATER THAN
   50  THREE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS AND  NO  GREATER  THAN  FOUR
   51  HUNDRED THIRTY-SEVEN THOUSAND FIVE HUNDRED DOLLARS IN ANY CALENDAR QUAR-
   52  TER,  AND  (C)  THIRTY-FOUR  HUNDREDTHS (.34) PERCENT FOR EMPLOYERS WITH
   53  PAYROLL EXPENSE IN EXCESS OF FOUR  HUNDRED  THIRTY-SEVEN  THOUSAND  FIVE
   54  HUNDRED  DOLLARS  IN  ANY  CALENDAR  QUARTER,  and  (2)  AT  A  RATE  OF
       S. 2                               10                               A. 2

    1  THIRTY-FOUR HUNDREDTHS (.34) PERCENT OF the net earnings  from  self-em-
    2  ployment  of individuals that are attributable to the MCTD if such earn-
    3  ings attributable to the MCTD exceed [ten] FIFTY  thousand  dollars  for
    4  the tax year.
    5    S  3.  Any reductions in transit aid attributable to reductions in the
    6  metropolitan commuter transportation mobility tax authorized under arti-
    7  cle 23 of the tax law shall be offset through alternative  sources  that
    8  will be included in the state budget.
    9    S  4.  This  act shall take effect immediately; provided however, that
   10  section one of this act and the amendments in section two  of  this  act
   11  that  concern  employers  shall take effect for the quarter beginning on
   12  April 1, 2012.

   13                                   PART C

   14    Section 1. Subparagraph (vi) of paragraph  (a)  of  subdivision  1  of
   15  section  210  of the tax law, as added by section 2 of part N of chapter
   16  60 of the laws of 2007, is amended to read as follows:
   17    (vi) for taxable years beginning on or after January thirty-first, two
   18  thousand seven, the amount prescribed by this paragraph for  a  taxpayer
   19  which  is  a  qualified  New York manufacturer, shall be computed at the
   20  rate of six and one-half (6.5) percent  of  the  taxpayer's  entire  net
   21  income  base. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO
   22  THOUSAND TWELVE AND BEFORE JANUARY  FIRST,  TWO  THOUSAND  FIFTEEN,  THE
   23  AMOUNT  PRESCRIBED BY THIS PARAGRAPH FOR A TAXPAYER WHICH IS AN ELIGIBLE
   24  QUALIFIED NEW YORK MANUFACTURER SHALL BE COMPUTED AT THE RATE  OF  THREE
   25  AND ONE-QUARTER (3.25) PERCENT OF THE TAXPAYER'S ENTIRE NET INCOME BASE.
   26  The  term  "manufacturer" shall mean a taxpayer which during the taxable
   27  year is principally engaged in the production of goods by manufacturing,
   28  processing, assembling, refining, mining, extracting, farming,  agricul-
   29  ture,  horticulture,  floriculture,  viticulture  or commercial fishing.
   30  However, the generation and distribution of  electricity,  the  distrib-
   31  ution  of  natural  gas, and the production of steam associated with the
   32  generation of electricity shall  not  be  qualifying  activities  for  a
   33  manufacturer  under  this  subparagraph.    Moreover, the combined group
   34  shall be considered a "manufacturer" for purposes of  this  subparagraph
   35  only  if  the  combined  group  during  the  taxable year is principally
   36  engaged in the activities set forth in this paragraph, or  any  combina-
   37  tion  thereof.  A  taxpayer  or  a  combined group shall be "principally
   38  engaged" in activities described above if, during the taxable year, more
   39  than fifty percent of the gross receipts of  the  taxpayer  or  combined
   40  group,  respectively,  are  derived from receipts from the sale of goods
   41  produced by such activities.  In  computing  a  combined  group's  gross
   42  receipts,  intercorporate receipts shall be eliminated. A "qualified New
   43  York manufacturer" is a manufacturer which  has  property  in  New  York
   44  which is described in clause (A) of subparagraph (i) of paragraph (b) of
   45  subdivision  twelve of this section and either (I) the adjusted basis of
   46  such property for federal income tax purposes at the close of the  taxa-
   47  ble  year  is  at  least one million dollars or (II) all of its real and
   48  personal property is located in New York. In addition, a "qualified  New
   49  York  manufacturer"  means  a  taxpayer  which is defined as a qualified
   50  emerging technology company under paragraph (c) of  subdivision  one  of
   51  section  thirty-one  hundred two-e of the public authorities law regard-
   52  less of the ten million dollar limitation expressed in subparagraph  one
   53  of  such paragraph (c).  THE COMMISSIONER SHALL ESTABLISH GUIDELINES AND
   54  CRITERIA THAT SPECIFY REQUIREMENTS BY WHICH A MANUFACTURER MAY BE  CLAS-
       S. 2                               11                               A. 2

    1  SIFIED  AS  AN  ELIGIBLE  QUALIFIED  NEW YORK MANUFACTURER. CRITERIA MAY
    2  INCLUDE BUT NOT BE LIMITED TO FACTORS SUCH AS REGIONAL UNEMPLOYMENT, THE
    3  ECONOMIC IMPACT THAT MANUFACTURING HAS  ON  THE  SURROUNDING  COMMUNITY,
    4  POPULATION DECLINE WITHIN THE REGION AND MEDIAN INCOME WITHIN THE REGION
    5  IN  WHICH  THE MANUFACTURER IS LOCATED. IN ESTABLISHING THESE GUIDELINES
    6  AND CRITERIA, THE COMMISSIONER SHALL ENDEAVOR THAT THE TOTAL ANNUAL COST
    7  OF THE LOWER RATES SHALL NOT EXCEED TWENTY-FIVE MILLION DOLLARS.
    8    S 2.  Subparagraph (ii) of paragraph (c) of subdivision 1  of  section
    9  210  of  the tax law, as amended by section 5 of part N of chapter 60 of
   10  the laws of 2007, is amended to read as follows:
   11    (ii) [For taxable years beginning in nineteen hundred ninety, nineteen
   12  hundred ninety-one, nineteen hundred ninety-two, nineteen hundred  nine-
   13  ty-three  and nineteen hundred ninety-four the amount prescribed by this
   14  paragraph shall be computed at the rate of five percent of  the  taxpay-
   15  er's  minimum  taxable  income  base.  For taxable years beginning after
   16  nineteen hundred ninety-four and before  July  first,  nineteen  hundred
   17  ninety-eight,  the amount prescribed by this paragraph shall be computed
   18  at the rate of three and one-half  percent  of  the  taxpayer's  minimum
   19  taxable  income  base. For taxable years beginning after June thirtieth,
   20  nineteen hundred ninety-eight and before July  first,  nineteen  hundred
   21  ninety-nine,  the  amount prescribed by this paragraph shall be computed
   22  at the rate of three and one-quarter percent of the  taxpayer's  minimum
   23  taxable  income  base. For taxable years beginning after June thirtieth,
   24  nineteen hundred ninety-nine and before July first,  two  thousand,  the
   25  amount  prescribed  by  this  paragraph shall be computed at the rate of
   26  three percent of the taxpayer's minimum taxable income base.  For  taxa-
   27  ble  years  beginning  after  June  thirtieth,  two thousand, the amount
   28  prescribed by this paragraph shall be computed at the rate  of  two  and
   29  one-half percent of the taxpayer's minimum taxable income base.] (A) For
   30  taxable  years  beginning on or after January first, two thousand seven,
   31  THE amount prescribed by this paragraph shall be computed at the rate of
   32  one and one-half percent of the taxpayer's minimum taxable income  base.
   33  The  "taxpayer's  minimum taxable income base" shall mean the portion of
   34  the taxpayer's minimum taxable income  allocated  within  the  state  as
   35  hereinafter  provided,  subject  to  any modifications required by para-
   36  graphs (d) and (e) of subdivision three of this section.
   37    (B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOU-
   38  SAND  TWELVE  AND BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, THE AMOUNT
   39  PRESCRIBED BY THIS PARAGRAPH FOR AN ELIGIBLE QUALIFIED NEW YORK MANUFAC-
   40  TURER SHALL BE COMPUTED AT THE RATE  OF  SEVENTY-FIVE  HUNDREDTHS  (.75)
   41  PERCENT  OF  THE TAXPAYER'S MINIMUM TAXABLE INCOME BASE. FOR PURPOSES OF
   42  THIS CLAUSE, THE TERM "ELIGIBLE QUALIFIED NEW YORK  MANUFACTURER"  SHALL
   43  HAVE  THE  SAME MEANING AS IN SUBPARAGRAPH (VI) OF PARAGRAPH (A) OF THIS
   44  SUBDIVISION.
   45    S 3. Paragraph (d) of subdivision 1 of section 210 of the tax  law  is
   46  amended by adding a new subparagraph 5 to read as follows:
   47    (5)  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
   48  SAND TWELVE AND BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, THE  AMOUNTS
   49  PRESCRIBED  IN SUBPARAGRAPHS ONE AND FOUR OF THIS PARAGRAPH AS THE FIXED
   50  DOLLAR MINIMUM TAX FOR AN ELIGIBLE QUALIFIED NEW YORK MANUFACTURER SHALL
   51  BE ONE-HALF OF THE AMOUNTS STATED IN THOSE SUBPARAGRAPHS.  FOR  PURPOSES
   52  OF  THIS SUBPARAGRAPH, THE TERM "ELIGIBLE QUALIFIED NEW YORK MANUFACTUR-
   53  ER" SHALL HAVE THE SAME MEANING AS IN SUBPARAGRAPH (VI) OF PARAGRAPH (A)
   54  OF THIS SUBDIVISION.
   55    S 4. This act shall take effect immediately.
       S. 2                               12                               A. 2

    1                                   PART D

    2    Section  1.  The  labor law is amended by adding a new section 25-a to
    3  read as follows:
    4    S 25-A. POWER TO ADMINISTER  THE  NEW  YORK  YOUTH  WORKS  TAX  CREDIT
    5  PROGRAM.  (A) THE COMMISSIONER IS AUTHORIZED TO ESTABLISH AND ADMINISTER
    6  THE NEW YORK YOUTH WORKS TAX CREDIT PROGRAM TO PROVIDE TAX INCENTIVES TO
    7  EMPLOYERS FOR EMPLOYING AT RISK YOUTH IN PART-TIME AND  FULL-TIME  POSI-
    8  TIONS IN TWO THOUSAND TWELVE AND TWO THOUSAND THIRTEEN. THE COMMISSIONER
    9  IS AUTHORIZED TO ALLOCATE UP TO TWENTY-FIVE MILLION DOLLARS OF TAX CRED-
   10  ITS UNDER THIS PROGRAM.
   11    (B)  DEFINITIONS.  (1) THE TERM "QUALIFIED EMPLOYER" MEANS AN EMPLOYER
   12  THAT HAS BEEN CERTIFIED BY THE COMMISSIONER TO PARTICIPATE  IN  THE  NEW
   13  YORK  YOUTH WORKS TAX CREDIT PROGRAM AND THAT EMPLOYS ONE OR MORE QUALI-
   14  FIED EMPLOYEES.
   15    (2) THE TERM "QUALIFIED EMPLOYEE" MEANS AN INDIVIDUAL:
   16    (I) WHO IS BETWEEN THE AGE OF SIXTEEN AND TWENTY-FOUR;
   17    (II) WHO RESIDES IN A CITY WITH A POPULATION OF SIXTY-TWO THOUSAND  OR
   18  MORE  OR  A  TOWN  WITH  A POPULATION OF FOUR HUNDRED EIGHTY THOUSAND OR
   19  MORE;
   20    (III) WHO IS LOW-INCOME OR AT-RISK, AS THOSE TERMS ARE DEFINED BY  THE
   21  COMMISSIONER;
   22    (IV) WHO IS UNEMPLOYED PRIOR TO BEING HIRED BY THE QUALIFIED EMPLOYER;
   23  AND
   24    (V)  WHO  WILL BE WORKING FOR THE QUALIFIED EMPLOYER IN A FULL-TIME OR
   25  PART-TIME POSITION THAT PAYS WAGES THAT ARE EQUIVALENT TO THE WAGES PAID
   26  FOR SIMILAR JOBS, WITH APPROPRIATE ADJUSTMENTS FOR EXPERIENCE AND TRAIN-
   27  ING, AND FOR WHICH NO OTHER EMPLOYEE HAS BEEN TERMINATED, OR  WHERE  THE
   28  EMPLOYER  HAS  NOT OTHERWISE REDUCED ITS WORKFORCE BY INVOLUNTARY TERMI-
   29  NATIONS WITH THE INTENTION OF FILLING THE  VACANCY  BY  CREATING  A  NEW
   30  HIRE.
   31    (C)  A  QUALIFIED  EMPLOYER SHALL BE ENTITLED TO A TAX CREDIT EQUAL TO
   32  (1) FIVE HUNDRED DOLLARS PER MONTH FOR UP TO SIX MONTHS FOR EACH  QUALI-
   33  FIED  EMPLOYEE  THE  EMPLOYER  EMPLOYS IN A FULL-TIME JOB OR TWO HUNDRED
   34  FIFTY DOLLARS PER MONTH FOR UP TO SIX MONTHS FOR EACH QUALIFIED EMPLOYEE
   35  THE EMPLOYER EMPLOYS IN A PART-TIME JOB OF AT  LEAST  TWENTY  HOURS  PER
   36  WEEK,  AND  (2)  ONE THOUSAND DOLLARS FOR EACH QUALIFIED EMPLOYEE WHO IS
   37  EMPLOYED FOR AT LEAST AN ADDITIONAL SIX MONTHS BY THE QUALIFIED EMPLOYER
   38  IN A FULL-TIME JOB OR FIVE HUNDRED DOLLARS FOR EACH  QUALIFIED  EMPLOYEE
   39  WHO  IS  EMPLOYED FOR AT LEAST AN ADDITIONAL SIX MONTHS BY THE QUALIFIED
   40  EMPLOYER IN A PART-TIME JOB OF AT LEAST TWENTY HOURS PER WEEK.  THE  TAX
   41  CREDITS  SHALL  BE  CLAIMED  BY  THE  QUALIFIED EMPLOYER AS SPECIFIED IN
   42  SUBDIVISION FORTY-FOUR OF SECTION TWO HUNDRED TEN AND SUBSECTION (TT) OF
   43  SECTION SIX HUNDRED SIX OF THE TAX LAW.
   44    (D) TO PARTICIPATE IN THE NEW YORK YOUTH WORKS TAX CREDIT PROGRAM,  AN
   45  EMPLOYER MUST SUBMIT AN APPLICATION (IN A FORM PRESCRIBED BY THE COMMIS-
   46  SIONER) TO THE COMMISSIONER AFTER JANUARY FIRST, TWO THOUSAND TWELVE BUT
   47  NO  LATER THAN JUNE FIRST, TWO THOUSAND TWELVE.  THE QUALIFIED EMPLOYEES
   48  MUST START THEIR EMPLOYMENT ON OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND
   49  TWELVE  BUT  NO LATER THAN JULY FIRST, TWO THOUSAND TWELVE.  THE COMMIS-
   50  SIONER SHALL ESTABLISH GUIDELINES AND CRITERIA THAT SPECIFY REQUIREMENTS
   51  FOR EMPLOYERS TO PARTICIPATE  IN  THE  PROGRAM  INCLUDING  CRITERIA  FOR
   52  CERTIFYING  QUALIFIED  EMPLOYEES.  ANY REGULATIONS THAT THE COMMISSIONER
   53  DETERMINES ARE NECESSARY MAY BE ADOPTED ON AN EMERGENCY  BASIS  NOTWITH-
   54  STANDING  ANYTHING  TO  THE  CONTRARY  IN SECTION TWO HUNDRED TWO OF THE
   55  STATE ADMINISTRATIVE PROCEDURE ACT. SUCH REQUIREMENTS  MAY  INCLUDE  THE
       S. 2                               13                               A. 2

    1  TYPES  OF INDUSTRIES THAT THE EMPLOYERS ARE ENGAGED IN. THE COMMISSIONER
    2  MAY GIVE PREFERENCE TO EMPLOYERS THAT ARE ENGAGED IN DEMAND  OCCUPATIONS
    3  OR INDUSTRIES, OR IN REGIONAL GROWTH SECTORS, INCLUDING THOSE IDENTIFIED
    4  BY  THE  REGIONAL  ECONOMIC  DEVELOPMENT COUNCILS, SUCH AS CLEAN ENERGY,
    5  HEALTHCARE, ADVANCED MANUFACTURING AND CONSERVATION.  IN  ADDITION,  THE
    6  COMMISSIONER  SHALL  GIVE  PREFERENCE TO EMPLOYERS WHO OFFER ADVANCEMENT
    7  AND EMPLOYEE BENEFIT PACKAGES TO THE QUALIFIED INDIVIDUALS.
    8    (E) IF, AFTER REVIEWING THE APPLICATION SUBMITTED BY AN EMPLOYER,  THE
    9  COMMISSIONER DETERMINES THAT SUCH EMPLOYER IS ELIGIBLE TO PARTICIPATE IN
   10  THE  NEW  YORK  YOUTH  WORKS  TAX CREDIT PROGRAM, THE COMMISSIONER SHALL
   11  ISSUE THE EMPLOYER A CERTIFICATE OF  ELIGIBILITY  THAT  ESTABLISHES  THE
   12  EMPLOYER  AS  A QUALIFIED EMPLOYER. THE CERTIFICATE OF ELIGIBILITY SHALL
   13  SPECIFY THE MAXIMUM AMOUNT OF NEW YORK YOUTH WORKS TAX CREDIT  THAT  THE
   14  EMPLOYER WILL BE ALLOWED TO CLAIM.
   15    S 2. Section 210 of the tax law is amended by adding a new subdivision
   16  44 to read as follows:
   17    44.  NEW  YORK  YOUTH  WORKS  TAX CREDIT. (A) A TAXPAYER THAT HAS BEEN
   18  CERTIFIED BY THE COMMISSIONER OF LABOR AS A QUALIFIED EMPLOYER  PURSUANT
   19  TO  SECTION  TWENTY-FIVE-A  OF  THE  LABOR LAW SHALL BE ALLOWED A CREDIT
   20  AGAINST THE TAX IMPOSED BY  THIS  ARTICLE  EQUAL  TO  (I)  FIVE  HUNDRED
   21  DOLLARS  PER  MONTH FOR UP TO SIX MONTHS FOR EACH QUALIFIED EMPLOYEE THE
   22  EMPLOYER EMPLOYS IN A FULL-TIME JOB OR TWO  HUNDRED  FIFTY  DOLLARS  PER
   23  MONTH  FOR  UP  TO  SIX  MONTHS FOR EACH QUALIFIED EMPLOYEE THE EMPLOYER
   24  EMPLOYS IN A PART-TIME JOB OF AT LEAST TWENTY HOURS PER WEEK,  AND  (II)
   25  ONE  THOUSAND DOLLARS FOR EACH QUALIFIED EMPLOYEE WHO IS EMPLOYED FOR AT
   26  LEAST AN ADDITIONAL SIX MONTHS BY THE QUALIFIED EMPLOYER IN A  FULL-TIME
   27  JOB  OR FIVE HUNDRED DOLLARS FOR EACH QUALIFIED EMPLOYEE WHO IS EMPLOYED
   28  FOR AT LEAST AN ADDITIONAL SIX MONTHS BY THE  QUALIFIED  EMPLOYER  IN  A
   29  PART-TIME  JOB  OF  AT LEAST TWENTY HOURS PER WEEK. FOR PURPOSES OF THIS
   30  SUBDIVISION, THE TERM "QUALIFIED EMPLOYEE" SHALL HAVE THE  SAME  MEANING
   31  AS  SET  FORTH  IN SUBDIVISION (B) OF SECTION TWENTY-FIVE-A OF THE LABOR
   32  LAW. THE PORTION OF THE CREDIT DESCRIBED IN  SUBPARAGRAPH  (I)  OF  THIS
   33  PARAGRAPH  SHALL  BE  ALLOWED FOR THE TAXABLE YEAR BEGINNING ON OR AFTER
   34  JANUARY FIRST, TWO THOUSAND TWELVE AND BEFORE JANUARY FIRST,  TWO  THOU-
   35  SAND  THIRTEEN,  AND THE PORTION OF THE CREDIT DESCRIBED IN SUBPARAGRAPH
   36  (II) OF THIS PARAGRAPH SHALL BE ALLOWED FOR TAXABLE YEARS  BEGINNING  ON
   37  OR  AFTER  JANUARY  FIRST, TWO THOUSAND TWELVE AND BEFORE JANUARY FIRST,
   38  TWO THOUSAND FOURTEEN.
   39    (B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY
   40  NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS THAN THE AMOUNT  PRESCRIBED
   41  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF THIS SECTION.  HOWEVER, IF THE
   42  AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
   43  REDUCES THE TAX TO THAT AMOUNT, ANY AMOUNT OF CREDIT NOT  DEDUCTIBLE  IN
   44  THAT TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
   45  ED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
   46  EIGHTY-SIX  OF THIS CHAPTER. PROVIDED, HOWEVER, NO INTEREST WILL BE PAID
   47  THEREON.
   48    (C) THE TAXPAYER MAY BE REQUIRED TO  ATTACH  TO  ITS  TAX  RETURN  ITS
   49  CERTIFICATE  OF ELIGIBILITY ISSUED BY THE COMMISSIONER OF LABOR PURSUANT
   50  TO SECTION TWENTY-FIVE-A OF THE LABOR  LAW.    IN  NO  EVENT  SHALL  THE
   51  TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT OF THE CREDIT LIST-
   52  ED  ON THE CERTIFICATE OF ELIGIBILITY.  NOTWITHSTANDING ANY PROVISION OF
   53  THIS CHAPTER TO THE CONTRARY, THE COMMISSIONER  AND  THE  COMMISSIONER'S
   54  DESIGNEES  MAY  RELEASE THE NAMES AND ADDRESSES OF ANY TAXPAYER CLAIMING
   55  THIS CREDIT AND THE  AMOUNT  OF  THE  CREDIT  EARNED  BY  THE  TAXPAYER.
   56  PROVIDED,  HOWEVER,  IF  A  TAXPAYER  CLAIMS THIS CREDIT BECAUSE IT IS A
       S. 2                               14                               A. 2

    1  MEMBER OF A LIMITED LIABILITY COMPANY OR A  PARTNER  IN  A  PARTNERSHIP,
    2  ONLY  THE  AMOUNT  OF  CREDIT EARNED BY THE ENTITY AND NOT THE AMOUNT OF
    3  CREDIT CLAIMED BY THE TAXPAYER MAY BE RELEASED.
    4    S  3. Section 606 of the tax law is amended by adding a new subsection
    5  (tt) to read as follows:
    6    (TT) NEW YORK YOUTH WORKS TAX CREDIT. (1) A  TAXPAYER  THAT  HAS  BEEN
    7  CERTIFIED  BY THE COMMISSIONER OF LABOR AS A QUALIFIED EMPLOYER PURSUANT
    8  TO SECTION TWENTY-FIVE-A OF THE LABOR LAW  SHALL  BE  ALLOWED  A  CREDIT
    9  AGAINST  THE  TAX  IMPOSED  BY  THIS  ARTICLE  EQUAL TO (A) FIVE HUNDRED
   10  DOLLARS PER MONTH FOR UP TO SIX MONTHS FOR EACH QUALIFIED  EMPLOYEE  THE
   11  EMPLOYER  EMPLOYS  IN  A  FULL-TIME JOB OR TWO HUNDRED FIFTY DOLLARS PER
   12  MONTH FOR UP TO SIX MONTHS FOR  EACH  QUALIFIED  EMPLOYEE  THE  EMPLOYER
   13  EMPLOYS  IN  A  PART-TIME JOB OF AT LEAST TWENTY HOURS PER WEEK, AND (B)
   14  ONE THOUSAND DOLLARS FOR EACH QUALIFIED EMPLOYEE WHO IS EMPLOYED FOR  AT
   15  LEAST  AN ADDITIONAL SIX MONTHS BY THE QUALIFIED EMPLOYER IN A FULL-TIME
   16  JOB OR FIVE HUNDRED DOLLARS FOR EACH QUALIFIED EMPLOYEE WHO IS  EMPLOYED
   17  FOR  AT  LEAST  AN  ADDITIONAL SIX MONTHS BY THE QUALIFIED EMPLOYER IN A
   18  PART-TIME JOB OF AT LEAST TWENTY HOURS PER WEEK. A TAXPAYER  THAT  IS  A
   19  PARTNER  IN  A  PARTNERSHIP,  MEMBER  OF  A LIMITED LIABILITY COMPANY OR
   20  SHAREHOLDER IN AN S CORPORATION THAT HAS BEEN CERTIFIED BY  THE  COMMIS-
   21  SIONER   OF   LABOR   AS   A  QUALIFIED  EMPLOYER  PURSUANT  TO  SECTION
   22  TWENTY-FIVE-A OF THE LABOR LAW SHALL BE ALLOWED ITS PRO  RATA  SHARE  OF
   23  THE  CREDIT  EARNED  BY  THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR S
   24  CORPORATION. FOR  PURPOSES  OF  THIS  SUBSECTION,  THE  TERM  "QUALIFIED
   25  EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF
   26  SECTION  TWENTY-FIVE-A  OF  THE  LABOR  LAW.  THE  PORTION OF THE CREDIT
   27  DESCRIBED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL BE ALLOWED FOR THE
   28  TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOUSAND  TWELVE
   29  AND  BEFORE JANUARY FIRST, TWO THOUSAND THIRTEEN, AND THE PORTION OF THE
   30  CREDIT DESCRIBED IN SUBPARAGRAPH (B) OF THIS PARAGRAPH SHALL BE  ALLOWED
   31  FOR  TAXABLE  YEARS  BEGINNING  ON  OR AFTER JANUARY FIRST, TWO THOUSAND
   32  TWELVE AND BEFORE JANUARY FIRST, TWO THOUSAND FOURTEEN.
   33    (2) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION  EXCEEDS
   34  THE TAXPAYER'S TAX FOR THE TAXABLE YEAR, ANY AMOUNT OF CREDIT NOT DEDUC-
   35  TIBLE  IN  THAT TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO
   36  BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
   37  HUNDRED EIGHTY-SIX OF THIS ARTICLE. PROVIDED, HOWEVER, NO INTEREST  WILL
   38  BE PAID THEREON.
   39    (3)  THE  TAXPAYER  MAY  BE  REQUIRED  TO ATTACH TO ITS TAX RETURN ITS
   40  CERTIFICATE OF ELIGIBILITY ISSUED BY THE COMMISSIONER OF LABOR  PURSUANT
   41  TO  SECTION  TWENTY-FIVE-A  OF  THE  LABOR  LAW.   IN NO EVENT SHALL THE
   42  TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT OF THE CREDIT LIST-
   43  ED ON THE CERTIFICATE OF ELIGIBILITY.  NOTWITHSTANDING ANY PROVISION  OF
   44  THIS  CHAPTER  TO  THE CONTRARY, THE COMMISSIONER AND THE COMMISSIONER'S
   45  DESIGNEES MAY RELEASE THE NAMES AND ADDRESSES OF ANY  TAXPAYER  CLAIMING
   46  THIS  CREDIT  AND  THE  AMOUNT  OF  THE  CREDIT  EARNED BY THE TAXPAYER.
   47  PROVIDED, HOWEVER, IF A TAXPAYER CLAIMS THIS  CREDIT  BECAUSE  IT  IS  A
   48  MEMBER  OF A LIMITED LIABILITY COMPANY, A PARTNER IN A PARTNERSHIP, OR A
   49  SHAREHOLDER IN A SUBCHAPTER S CORPORATION, ONLY  THE  AMOUNT  OF  CREDIT
   50  EARNED BY THE ENTITY AND NOT THE AMOUNT OF CREDIT CLAIMED BY THE TAXPAY-
   51  ER MAY BE RELEASED.
   52    S  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
   53  of the tax law is amended by adding a new clause  (xxxiii)  to  read  as
   54  follows:
   55  (XXXIII) NEW YORK YOUTH WORKS        AMOUNT OF CREDIT UNDER
   56           TAX CREDIT                  SUBDIVISION FORTY-FOUR OF
       S. 2                               15                               A. 2

    1                                       SECTION TWO HUNDRED TEN
    2  S 5. This act shall take effect immediately.

    3                                   PART E

    4    Section  1.  The  economic  development law is amended by adding a new
    5  article 20 to read as follows:
    6                                  ARTICLE 20
    7                     EMPIRE STATE JOBS RETENTION PROGRAM

    8  SECTION 420. SHORT TITLE.
    9          421. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION.
   10          422. DEFINITIONS.
   11          423. ELIGIBILITY CRITERIA.
   12          424. APPLICATION AND APPROVAL PROCESS.
   13          425. EMPIRE STATE JOBS RETENTION PROGRAM CREDIT.
   14          426. POWERS AND DUTIES OF THE COMMISSIONER.
   15          427. MAINTENANCE OF RECORDS.
   16          428. REPORTING.
   17          429. CAP ON TAX CREDIT.

   18    S 420. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY  BE  CITED  AS
   19  THE "EMPIRE STATE JOBS RETENTION PROGRAM."
   20    S 421. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION. IT IS HEREBY
   21  FOUND  AND  DECLARED  THAT  NEW  YORK STATE NEEDS, AS A MATTER OF PUBLIC
   22  POLICY, TO CREATE COMPETITIVE FINANCIAL INCENTIVES TO  RETAIN  STRATEGIC
   23  BUSINESSES  AND  JOBS  THAT  ARE AT RISK OF LEAVING THE STATE DUE TO THE
   24  IMPACT ON ITS BUSINESS OPERATIONS OF AN EVENT LEADING  TO  AN  EMERGENCY
   25  DECLARATION  BY THE GOVERNOR. THE EMPIRE STATE JOBS RETENTION PROGRAM IS
   26  CREATED TO SUPPORT THE RETENTION OF THE  STATE'S  MOST  STRATEGIC  BUSI-
   27  NESSES IN THE EVENT OF AN EMERGENCY.
   28    THIS LEGISLATION CREATES A JOBS TAX CREDIT FOR EACH JOB OF A STRATEGIC
   29  BUSINESS DIRECTLY IMPACTED BY AN EMERGENCY AND PROTECTS STATE TAXPAYERS'
   30  DOLLARS  BY  ENSURING  THAT NEW YORK PROVIDES TAX BENEFITS ONLY TO BUSI-
   31  NESSES THAT CAN DEMONSTRATE SUBSTANTIAL  PHYSICAL  DAMAGE  AND  ECONOMIC
   32  HARM  RESULTING FROM AN EVENT LEADING TO AN EMERGENCY DECLARATION BY THE
   33  GOVERNOR.
   34    S 422. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
   35    1. "AGRICULTURE" MEANS BOTH  AGRICULTURAL  PRODUCTION  (ESTABLISHMENTS
   36  PERFORMING  THE COMPLETE FARM OR RANCH OPERATION, SUCH AS FARM OWNER-OP-
   37  ERATORS, TENANT FARM  OPERATORS,  AND  SHARECROPPERS)  AND  AGRICULTURAL
   38  SUPPORT  (ESTABLISHMENTS  THAT PERFORM ONE OR MORE ACTIVITIES ASSOCIATED
   39  WITH FARM OPERATION, SUCH AS SOIL PREPARATION, PLANTING, HARVESTING, AND
   40  MANAGEMENT, ON A CONTRACT OR FEE BASIS).
   41    2. "BACK OFFICE OPERATIONS" MEANS A BUSINESS FUNCTION THAT MAY INCLUDE
   42  ONE OR MORE OF THE FOLLOWING ACTIVITIES: CUSTOMER  SERVICE,  INFORMATION
   43  TECHNOLOGY  AND DATA PROCESSING, HUMAN RESOURCES, ACCOUNTING AND RELATED
   44  ADMINISTRATIVE FUNCTIONS.
   45    3. "CERTIFICATE OF ELIGIBILITY"  MEANS  THE  DOCUMENT  ISSUED  BY  THE
   46  DEPARTMENT  TO  AN  APPLICANT  THAT  HAS  COMPLETED AN APPLICATION TO BE
   47  ADMITTED INTO THE EMPIRE STATE  JOBS  RETENTION  PROGRAM  AND  HAS  BEEN
   48  ACCEPTED INTO THE PROGRAM BY THE DEPARTMENT. POSSESSION OF A CERTIFICATE
   49  OF ELIGIBILITY DOES NOT BY ITSELF GUARANTEE THE ELIGIBILITY TO CLAIM THE
   50  TAX CREDIT.
   51    4.  "CERTIFICATE OF TAX CREDIT" MEANS THE DOCUMENT ISSUED TO A PARTIC-
   52  IPANT BY THE DEPARTMENT, AFTER THE  DEPARTMENT  HAS  VERIFIED  THAT  THE
       S. 2                               16                               A. 2

    1  PARTICIPANT HAS MET ALL APPLICABLE ELIGIBILITY CRITERIA IN THIS ARTICLE.
    2  THE  CERTIFICATE SHALL BE ISSUED ANNUALLY IF SUCH CRITERIA ARE SATISFIED
    3  AND SHALL SPECIFY THE EXACT AMOUNT OF EACH TAX CREDIT UNDER THIS ARTICLE
    4  THAT   A  PARTICIPANT  MAY  CLAIM,  PURSUANT  TO  SECTION  FOUR  HUNDRED
    5  TWENTY-FIVE OF THIS ARTICLE, AND SHALL SPECIFY THE TAXABLE YEAR IN WHICH
    6  SUCH CREDIT MAY BE CLAIMED.
    7    5. "DISTRIBUTION CENTER" MEANS A LARGE SCALE FACILITY INVOLVING  PROC-
    8  ESSING,  REPACKAGING  AND/OR MOVEMENT OF FINISHED OR SEMI-FINISHED GOODS
    9  TO RETAIL LOCATIONS ACROSS A MULTI-STATE AREA.
   10    6. "FINANCIAL SERVICES DATA CENTERS" OR "FINANCIAL  SERVICES  CUSTOMER
   11  BACK  OFFICE  OPERATIONS"  MEANS  OPERATIONS  THAT  MANAGE  THE  DATA OR
   12  ACCOUNTS OF EXISTING CUSTOMERS OR PROVIDE PRODUCT OR SERVICE INFORMATION
   13  AND SUPPORT TO CUSTOMERS  OF  FINANCIAL  SERVICES  COMPANIES,  INCLUDING
   14  BANKS,  OTHER  LENDERS,  SECURITIES AND COMMODITIES BROKERS AND DEALERS,
   15  INVESTMENT BANKS,  PORTFOLIO  MANAGERS,  TRUST  OFFICES,  AND  INSURANCE
   16  COMPANIES.
   17    7.  "IMPACTED  JOBS" MEANS JOBS EXISTING AT A BUSINESS ENTERPRISE AT A
   18  LOCATION OR LOCATIONS WITHIN THE COUNTY DECLARED  AN  EMERGENCY  BY  THE
   19  GOVERNOR  ON  THE  DAY  IMMEDIATELY PRECEDING THE DAY ON WHICH THE EVENT
   20  LEADING TO THE EMERGENCY DECLARATION BY THE GOVERNOR OCCURRED.
   21    8. "MANUFACTURING" MEANS THE PROCESS OF  WORKING  RAW  MATERIALS  INTO
   22  PRODUCTS  SUITABLE FOR USE OR WHICH GIVES NEW SHAPES, NEW QUALITY OR NEW
   23  COMBINATIONS TO MATTER WHICH HAS ALREADY GONE  THROUGH  SOME  ARTIFICIAL
   24  PROCESS  BY  THE  USE  OF MACHINERY, TOOLS, APPLIANCES, OR OTHER SIMILAR
   25  EQUIPMENT. "MANUFACTURING" DOES NOT INCLUDE AN OPERATION  THAT  INVOLVES
   26  ONLY  THE  ASSEMBLY  OF  COMPONENTS,  PROVIDED, HOWEVER, THE ASSEMBLY OF
   27  MOTOR VEHICLES OR OTHER HIGH VALUE-ADDED PRODUCTS  SHALL  BE  CONSIDERED
   28  MANUFACTURING.
   29    9. "PARTICIPANT" MEANS A BUSINESS ENTITY THAT:
   30    (A)  HAS  COMPLETED  AN APPLICATION PRESCRIBED BY THE DEPARTMENT TO BE
   31  ADMITTED INTO THE PROGRAM;
   32    (B) HAS BEEN ISSUED A CERTIFICATE OF ELIGIBILITY BY THE DEPARTMENT;
   33    (C) HAS DEMONSTRATED THAT IT MEETS THE ELIGIBILITY CRITERIA IN SECTION
   34  FOUR HUNDRED TWENTY-THREE AND SUBDIVISION TWO OF  SECTION  FOUR  HUNDRED
   35  TWENTY-FOUR OF THIS ARTICLE; AND
   36    (D) HAS BEEN CERTIFIED AS A PARTICIPANT BY THE COMMISSIONER.
   37    10.  "PRELIMINARY  SCHEDULE  OF  BENEFITS" MEANS THE MAXIMUM AGGREGATE
   38  AMOUNT OF THE TAX CREDIT THAT A PARTICIPANT IN  THE  EMPIRE  STATE  JOBS
   39  RETENTION  PROGRAM  IS ELIGIBLE TO RECEIVE PURSUANT TO THIS ARTICLE. THE
   40  SCHEDULE SHALL INDICATE THE ANNUAL AMOUNT OF THE  CREDIT  A  PARTICIPANT
   41  MAY CLAIM IN EACH OF ITS TEN YEARS OF ELIGIBILITY. THE PRELIMINARY SCHE-
   42  DULE  OF  BENEFITS SHALL BE ISSUED BY THE DEPARTMENT WHEN THE DEPARTMENT
   43  APPROVES THE APPLICATION FOR ADMISSION INTO THE PROGRAM. THE COMMISSION-
   44  ER MAY AMEND THAT SCHEDULE, PROVIDED THAT THE COMMISSIONER COMPLIES WITH
   45  THE CREDIT CAPS IN SECTION THREE HUNDRED FIFTY-NINE OF THIS CHAPTER.
   46    11. "RELATED PERSON" MEANS A RELATED PERSON PURSUANT  TO  SUBPARAGRAPH
   47  (C)  OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION FOUR HUNDRED SIXTY-
   48  FIVE OF THE INTERNAL REVENUE CODE.
   49    12. "SCIENTIFIC RESEARCH AND DEVELOPMENT"  MEANS  CONDUCTING  RESEARCH
   50  AND  EXPERIMENTAL  DEVELOPMENT  IN  THE  PHYSICAL, ENGINEERING, AND LIFE
   51  SCIENCES, INCLUDING BUT NOT LIMITED TO AGRICULTURE,  ELECTRONICS,  ENVI-
   52  RONMENTAL,  BIOLOGY,  BOTANY, BIOTECHNOLOGY, COMPUTERS, CHEMISTRY, FOOD,
   53  FISHERIES, FORESTS, GEOLOGY, HEALTH, MATHEMATICS,  MEDICINE,  OCEANOGRA-
   54  PHY,  PHARMACY, PHYSICS, VETERINARY, AND OTHER ALLIED SUBJECTS.  FOR THE
   55  PURPOSES OF THIS ARTICLE, SCIENTIFIC RESEARCH AND DEVELOPMENT  DOES  NOT
   56  INCLUDE MEDICAL OR VETERINARY LABORATORY TESTING FACILITIES.
       S. 2                               17                               A. 2

    1    13.  "SOFTWARE  DEVELOPMENT"  MEANS  THE  CREATION  OF  CODED COMPUTER
    2  INSTRUCTIONS AND INCLUDES NEW MEDIA AS DEFINED BY  THE  COMMISSIONER  IN
    3  REGULATIONS.
    4    S  423.  ELIGIBILITY  CRITERIA.  1.  TO BE A PARTICIPANT IN THE EMPIRE
    5  STATE JOBS RETENTION PROGRAM, A BUSINESS ENTITY  SHALL  OPERATE  IN  NEW
    6  YORK STATE PREDOMINANTLY:
    7    (A)  AS  A FINANCIAL SERVICES DATA CENTER OR A FINANCIAL SERVICES BACK
    8  OFFICE OPERATION;
    9    (B) IN MANUFACTURING;
   10    (C) IN SOFTWARE DEVELOPMENT AND NEW MEDIA;
   11    (D) IN SCIENTIFIC RESEARCH AND DEVELOPMENT;
   12    (E) IN AGRICULTURE;
   13    (F) IN THE CREATION OR EXPANSION OF  BACK  OFFICE  OPERATIONS  IN  THE
   14  STATE; OR
   15    (G) IN A DISTRIBUTION CENTER.
   16    2. WHEN DETERMINING WHETHER AN APPLICANT IS OPERATING PREDOMINANTLY IN
   17  ONE  OF  THE  INDUSTRIES  LISTED IN SUBDIVISION ONE OF THIS SECTION, THE
   18  COMMISSIONER WILL EXAMINE THE NATURE OF THE  BUSINESS  ACTIVITY  AT  THE
   19  LOCATION  FOR  THE  PROPOSED  PROJECT AND WILL MAKE ELIGIBILITY DETERMI-
   20  NATIONS BASED ON SUCH ACTIVITY.
   21    3. FOR THE PURPOSES OF THIS ARTICLE, IN ORDER TO  PARTICIPATE  IN  THE
   22  EMPIRE  STATE JOBS RETENTION PROGRAM, A BUSINESS ENTITY OPERATING IN ONE
   23  OF THE STRATEGIC INDUSTRIES LISTED IN SUBDIVISION ONE  OF  THIS  SECTION
   24  (A)  MUST BE LOCATED IN A COUNTY IN WHICH AN EMERGENCY HAS BEEN DECLARED
   25  BY THE GOVERNOR ON OR AFTER JANUARY FIRST, TWO THOUSAND ELEVEN, (B) MUST
   26  DEMONSTRATE SUBSTANTIAL PHYSICAL DAMAGE AND ECONOMIC HARM RESULTING FROM
   27  THE EVENT LEADING TO THE EMERGENCY DECLARATION BY THE GOVERNOR, AND  (C)
   28  MUST  HAVE  HAD  AT  LEAST  ONE HUNDRED FULL-TIME EQUIVALENT JOBS IN THE
   29  COUNTY IN WHICH AN EMERGENCY HAS BEEN DECLARED BY THE  GOVERNOR  ON  THE
   30  DAY  IMMEDIATELY  PRECEDING  THE  DAY  ON WHICH THE EVENT LEADING TO THE
   31  EMERGENCY DECLARATION BY THE  GOVERNOR  OCCURRED,  AND  MUST  RETAIN  OR
   32  EXCEED THAT NUMBER OF JOBS IN NEW YORK STATE.
   33    4.  A  NOT-FOR-PROFIT BUSINESS ENTITY, A BUSINESS ENTITY WHOSE PRIMARY
   34  FUNCTION IS THE PROVISION OF SERVICES INCLUDING PERSONAL SERVICES, BUSI-
   35  NESS SERVICES, OR THE PROVISION OF UTILITIES, A BUSINESS ENTITY  ENGAGED
   36  PREDOMINANTLY  IN  THE  RETAIL  OR  ENTERTAINMENT INDUSTRY, OR A COMPANY
   37  ENGAGED IN THE GENERATION OR DISTRIBUTION OF ELECTRICITY,  THE  DISTRIB-
   38  UTION  OF  NATURAL  GAS,  OR THE PRODUCTION OF STEAM ASSOCIATED WITH THE
   39  GENERATION OF ELECTRICITY ARE NOT ELIGIBLE TO  RECEIVE  THE  TAX  CREDIT
   40  DESCRIBED IN THIS ARTICLE.
   41    5.  A BUSINESS ENTITY MUST BE IN COMPLIANCE WITH ALL WORKER PROTECTION
   42  AND ENVIRONMENTAL LAWS AND REGULATIONS. IN ADDITION, A  BUSINESS  ENTITY
   43  MAY  NOT  OWE  PAST DUE STATE TAXES. IN ADDITION, A BUSINESS ENTITY MUST
   44  NOT OWE LOCAL PROPERTY TAXES FOR ANY YEAR PRIOR TO THE YEAR IN WHICH  IT
   45  APPLIES TO PARTICIPATE IN THE EMPIRE STATE JOBS RETENTION PROGRAM.
   46    S 424. APPLICATION AND APPROVAL PROCESS. 1. A BUSINESS ENTERPRISE MUST
   47  SUBMIT  A  COMPLETED APPLICATION AS PRESCRIBED BY THE COMMISSIONER. SUCH
   48  COMPLETED APPLICATION MUST BE SUBMITTED TO THE COMMISSIONER  WITHIN  (A)
   49  ONE HUNDRED EIGHTY DAYS OF THE DECLARATION OF AN EMERGENCY BY THE GOVER-
   50  NOR IN THE COUNTY IN WHICH THE BUSINESS ENTERPRISE IS LOCATED OR (B) ONE
   51  HUNDRED  EIGHTY  DAYS  OF THE ENACTMENT OF THIS ARTICLE, IF SUCH DATE IS
   52  LATER THAN THE DATE SPECIFIED IN PARAGRAPH (A) OF THIS SUBDIVISION.
   53    2. AS PART OF SUCH APPLICATION, EACH BUSINESS ENTERPRISE MUST:
   54    (A) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
   55  TAX INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION SHARED  AS
       S. 2                               18                               A. 2

    1  A  RESULT  OF  THIS  AGREEMENT  SHALL NOT BE AVAILABLE FOR DISCLOSURE OR
    2  INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW.
    3    (B)  AGREE  TO  ALLOW  THE  DEPARTMENT  OF  LABOR TO SHARE ITS TAX AND
    4  EMPLOYER INFORMATION  WITH  THE  DEPARTMENT.  HOWEVER,  ANY  INFORMATION
    5  SHARED  AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLO-
    6  SURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW.
    7    (C) ALLOW THE DEPARTMENT AND ITS AGENTS ACCESS TO ANY  AND  ALL  BOOKS
    8  AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE.
    9    (D)  AGREE TO BE PERMANENTLY DISQUALIFIED FOR EMPIRE ZONE TAX BENEFITS
   10  AT ANY  LOCATION  OR  LOCATIONS  THAT  QUALIFY  FOR  EMPIRE  STATE  JOBS
   11  RETENTION  PROGRAM  BENEFITS  IF  ADMITTED  INTO  THE  EMPIRE STATE JOBS
   12  RETENTION PROGRAM.
   13    (E) PROVIDE THE FOLLOWING INFORMATION TO THE DEPARTMENT UPON REQUEST:
   14    (I) A PLAN OUTLINING THE  SCHEDULE  FOR  MEETING  THE  JOBS  RETENTION
   15  REQUIREMENTS  AS  SET FORTH IN SUBDIVISION THREE OF SECTION FOUR HUNDRED
   16  TWENTY-THREE OF THIS ARTICLE. SUCH PLAN MUST  INCLUDE  DETAILS  ON  JOBS
   17  TITLES AND EXPECTED SALARIES;
   18    (II)  THE  PRIOR  THREE YEARS OF FEDERAL AND STATE INCOME OR FRANCHISE
   19  TAX RETURNS, UNEMPLOYMENT INSURANCE QUARTERLY RETURNS, REAL PROPERTY TAX
   20  BILLS AND AUDITED FINANCIAL STATEMENTS; AND
   21    (III) THE EMPLOYER IDENTIFICATION OR SOCIAL SECURITY NUMBERS  FOR  ALL
   22  RELATED  PERSONS  TO  THE APPLICANT, INCLUDING THOSE OF ANY MEMBERS OF A
   23  LIMITED LIABILITY COMPANY OR PARTNERS IN A PARTNERSHIP.
   24    (F) PROVIDE A CLEAR AND DETAILED PRESENTATION OF ALL  RELATED  PERSONS
   25  TO THE APPLICANT TO ASSURE THE DEPARTMENT THAT JOBS ARE NOT BEING SHIFT-
   26  ED WITHIN THE STATE.
   27    (G)  CERTIFY,  UNDER  PENALTY  OF  PERJURY,  THAT IT IS IN SUBSTANTIAL
   28  COMPLIANCE WITH ALL ENVIRONMENTAL, WORKER PROTECTION, AND LOCAL,  STATE,
   29  AND FEDERAL TAX LAWS.
   30    3.  AFTER  REVIEWING A BUSINESS ENTERPRISE'S COMPLETED APPLICATION AND
   31  DETERMINING THAT THE BUSINESS ENTERPRISE WILL MEET  THE  CONDITIONS  SET
   32  FORTH  IN SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-THREE OF THIS
   33  ARTICLE, THE DEPARTMENT MAY ADMIT THE APPLICANT  INTO  THE  PROGRAM  AND
   34  PROVIDE  THE  APPLICANT WITH A CERTIFICATE OF ELIGIBILITY AND A PRELIMI-
   35  NARY SCHEDULE OF BENEFITS BY YEAR BASED ON THE  APPLICANT'S  PROJECTIONS
   36  AS  SET  FORTH IN ITS APPLICATION. THIS PRELIMINARY SCHEDULE OF BENEFITS
   37  DELINEATES THE MAXIMUM POSSIBLE BENEFITS AN APPLICANT MAY RECEIVE.
   38    4. IN ORDER TO BECOME A PARTICIPANT IN THE PROGRAM, AN APPLICANT  MUST
   39  SUBMIT  EVIDENCE THAT IT SATISFIES THE ELIGIBILITY CRITERIA SPECIFIED IN
   40  SECTION FOUR HUNDRED TWENTY-THREE OF THIS ARTICLE AND SUBDIVISION TWO OF
   41  THIS SECTION IN SUCH FORM  AS  THE  COMMISSIONER  MAY  PRESCRIBE.  AFTER
   42  REVIEWING  SUCH EVIDENCE AND FINDING IT SUFFICIENT, THE DEPARTMENT SHALL
   43  CERTIFY THE APPLICANT AS A PARTICIPANT AND ISSUE TO THAT  PARTICIPANT  A
   44  CERTIFICATE OF TAX CREDIT FOR ONE TAXABLE YEAR. TO RECEIVE A CERTIFICATE
   45  OF  TAX CREDIT FOR SUBSEQUENT TAXABLE YEARS, THE PARTICIPANT MUST SUBMIT
   46  TO THE DEPARTMENT A PERFORMANCE REPORT DEMONSTRATING  THAT  THE  PARTIC-
   47  IPANT CONTINUES TO SATISFY THE ELIGIBILITY CRITERIA SPECIFIED IN SECTION
   48  FOUR  HUNDRED  TWENTY-THREE  OF THIS ARTICLE AND SUBDIVISION TWO OF THIS
   49  SECTION.
   50    5. A PARTICIPANT MAY CLAIM TAX BENEFITS COMMENCING IN THE FIRST  TAXA-
   51  BLE  YEAR  THAT  THE  BUSINESS  ENTERPRISE RECEIVES A CERTIFICATE OF TAX
   52  CREDIT OR THE FIRST TAXABLE YEAR LISTED ON ITS PRELIMINARY  SCHEDULE  OF
   53  BENEFITS,  WHICHEVER IS LATER. A PARTICIPANT MAY CLAIM SUCH BENEFITS FOR
   54  THE NEXT NINE CONSECUTIVE TAXABLE YEARS, PROVIDED THAT  THE  PARTICIPANT
   55  DEMONSTRATES  TO  THE DEPARTMENT THAT IT CONTINUES TO SATISFY THE ELIGI-
   56  BILITY CRITERIA SPECIFIED IN SECTION FOUR HUNDRED TWENTY-THREE  OF  THIS
       S. 2                               19                               A. 2

    1  ARTICLE  AND  SUBDIVISION  TWO  OF THIS SECTION IN EACH OF THOSE TAXABLE
    2  YEARS.
    3    S 425. EMPIRE STATE JOBS RETENTION PROGRAM CREDIT. 1. A PARTICIPANT IN
    4  THE  EMPIRE  STATE  JOBS  RETENTION PROGRAM SHALL BE ELIGIBLE TO CLAIM A
    5  CREDIT FOR THE IMPACTED JOBS. THE AMOUNT OF SUCH CREDIT SHALL  BE  EQUAL
    6  TO  THE  PRODUCT  OF THE GROSS WAGES PAID FOR THE IMPACTED JOBS AND 6.85
    7  PERCENT.
    8    2. THE TAX CREDIT ESTABLISHED IN THIS SECTION SHALL BE  REFUNDABLE  AS
    9  PROVIDED IN THE TAX LAW. IF A PARTICIPANT FAILS TO SATISFY THE ELIGIBIL-
   10  ITY  CRITERIA  IN ANY ONE YEAR, IT WILL LOSE THE ABILITY TO CLAIM CREDIT
   11  FOR THAT YEAR. THE EVENT OF SUCH FAILURE SHALL NOT EXTEND  THE  ORIGINAL
   12  TEN-YEAR ELIGIBILITY PERIOD.
   13    3.  THE  BUSINESS  ENTERPRISE  SHALL BE ALLOWED TO CLAIM THE CREDIT AS
   14  PRESCRIBED IN SECTION THIRTY-SIX OF THE TAX LAW;  PROVIDED,  HOWEVER,  A
   15  BUSINESS  ENTERPRISE  SHALL  NOT BE ALLOWED TO CLAIM THE CREDIT PRIOR TO
   16  TAX YEAR TWO THOUSAND TWELVE.
   17    4. A PARTICIPANT MAY BE ELIGIBLE FOR BENEFITS UNDER  THIS  ARTICLE  AS
   18  WELL  AS ARTICLE SEVENTEEN OF THIS CHAPTER, PROVIDED THE PARTICIPANT CAN
   19  ONLY RECEIVE BENEFITS PURSUANT  TO  SUBDIVISION  TWO  OF  SECTION  THREE
   20  HUNDRED  FIFTY-FIVE  OF THIS CHAPTER FOR COSTS IN EXCESS OF COSTS RECOV-
   21  ERED BY INSURANCE.
   22    S 426. POWERS AND DUTIES OF  THE  COMMISSIONER.  1.  THE  COMMISSIONER
   23  SHALL  PROMULGATE  REGULATIONS  ESTABLISHING  AN APPLICATION PROCESS AND
   24  ELIGIBILITY CRITERIA, THAT WILL BE APPLIED CONSISTENT WITH THE  PURPOSES
   25  OF  THIS  ARTICLE, SO AS NOT TO EXCEED THE ANNUAL CAP ON TAX CREDITS SET
   26  FORTH IN  SECTION  THREE  HUNDRED  FIFTY-NINE  OF  THIS  CHAPTER  WHICH,
   27  NOTWITHSTANDING  ANY PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRA-
   28  TIVE PROCEDURE ACT, MAY BE ADOPTED ON AN  EMERGENCY  BASIS.  SUCH  REGU-
   29  LATIONS  SHALL  INCLUDE, BUT NOT BE LIMITED TO, CRITERIA FOR DETERMINING
   30  WHETHER A BUSINESS ENTITY DEMONSTRATES SUBSTANTIAL PHYSICAL  DAMAGE  AND
   31  ECONOMIC  HARM FROM THE EVENT LEADING TO AN EMERGENCY DECLARATION BY THE
   32  GOVERNOR.
   33    2. THE COMMISSIONER SHALL, IN  CONSULTATION  WITH  THE  DEPARTMENT  OF
   34  TAXATION  AND FINANCE, DEVELOP A CERTIFICATE OF TAX CREDIT THAT SHALL BE
   35  ISSUED BY THE COMMISSIONER TO PARTICIPANTS. PARTICIPANTS MAY BE REQUIRED
   36  BY THE COMMISSIONER OF TAXATION AND FINANCE TO INCLUDE  THE  CERTIFICATE
   37  OF  TAX  CREDIT  WITH THEIR TAX RETURN TO RECEIVE ANY TAX BENEFITS UNDER
   38  THIS ARTICLE.
   39    3. THE COMMISSIONER SHALL SOLELY  DETERMINE  THE  ELIGIBILITY  OF  ANY
   40  APPLICANT  APPLYING  FOR  ENTRY  INTO  THE  PROGRAM AND SHALL REMOVE ANY
   41  PARTICIPANT FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIREMENTS
   42  SET FORTH IN SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-FOUR OF THIS
   43  ARTICLE, OR FOR FAILING TO MEET THE JOB RETENTION REQUIREMENTS SET FORTH
   44  IN SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-THREE OF THIS  ARTI-
   45  CLE,  OR  FOR  FAILING  TO  MEET THE REQUIREMENTS OF SUBDIVISION FIVE OF
   46  SECTION FOUR HUNDRED TWENTY-THREE OF THIS ARTICLE.
   47    S 427. MAINTENANCE OF RECORDS. EACH PARTICIPANT SHALL KEEP  ALL  RELE-
   48  VANT  RECORDS  FOR  THE DURATION OF ITS PROGRAM PARTICIPATION PLUS THREE
   49  YEARS.
   50    S 428. REPORTING. 1. EACH PARTICIPANT MUST SUBMIT A PERFORMANCE REPORT
   51  ANNUALLY, IN SUCH FORM AS THE COMMISSIONER MAY  REQUIRE,  WITHIN  THIRTY
   52  DAYS OF THE END OF THEIR TAXABLE YEAR.
   53    2.  THE  COMMISSIONER  SHALL  PREPARE  ON  A QUARTERLY BASIS A PROGRAM
   54  REPORT FOR POSTING ON THE DEPARTMENT'S WEBSITE. THE FIRST REPORT WILL BE
   55  DUE JUNE THIRTIETH, TWO THOUSAND THIRTEEN, AND EVERY THREE MONTHS THERE-
   56  AFTER. SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, THE  FOLLOWING:
       S. 2                               20                               A. 2

    1  NUMBER  OF APPLICANTS; NUMBER OF PARTICIPANTS APPROVED; NAMES OF PARTIC-
    2  IPANTS; TOTAL  AMOUNT  OF  BENEFITS  CERTIFIED;  BENEFITS  RECEIVED  PER
    3  PARTICIPANT;  TOTAL  NUMBER OF RETAINED JOBS; AND SUCH OTHER INFORMATION
    4  AS THE COMMISSIONER DETERMINES.
    5    S  429.  CAP  ON TAX CREDIT. THE TOTAL AMOUNT OF TAX CREDITS LISTED ON
    6  CERTIFICATES OF TAX CREDIT ISSUED BY THE COMMISSIONER  FOR  ANY  TAXABLE
    7  YEAR  MAY  NOT EXCEED THE LIMITATIONS SET FORTH IN SECTION THREE HUNDRED
    8  FIFTY-NINE OF THIS CHAPTER, AND SHALL BE ALLOTTED FROM THE FUNDS  AVAIL-
    9  ABLE FOR TAX CREDITS UNDER THE EXCELSIOR JOBS PROGRAM ACT.
   10    S  2.  The  tax  law  is amended by adding a new section 36 to read as
   11  follows:
   12    S 36. EMPIRE STATE JOBS RETENTION PROGRAM CREDIT.   (A)  ALLOWANCE  OF
   13  CREDIT.  A  TAXPAYER  SUBJECT  TO  TAX UNDER ARTICLE NINE-A, TWENTY-TWO,
   14  THIRTY-TWO OR THIRTY-THREE OF THIS CHAPTER SHALL  BE  ALLOWED  A  CREDIT
   15  AGAINST  SUCH  TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION
   16  (E) OF THIS SECTION. THE AMOUNT OF THE CREDIT, ALLOWABLE FOR TEN CONSEC-
   17  UTIVE TAX YEARS, IS EQUAL TO THE AMOUNT DETERMINED PURSUANT  TO  SECTION
   18  FOUR HUNDRED TWENTY-FIVE OF THE ECONOMIC DEVELOPMENT LAW.
   19    (B)  ELIGIBILITY.  TO  BE ELIGIBLE FOR THE EMPIRE STATE JOBS RETENTION
   20  CREDIT, THE TAXPAYER SHALL HAVE BEEN ISSUED A CERTIFICATE OF TAX  CREDIT
   21  BY  THE  DEPARTMENT OF ECONOMIC DEVELOPMENT PURSUANT TO SUBDIVISION FOUR
   22  OF SECTION FOUR HUNDRED TWENTY-FOUR OF  THE  ECONOMIC  DEVELOPMENT  LAW,
   23  WHICH  CERTIFICATE  SHALL SET FORTH THE AMOUNT OF THE CREDIT THAT MAY BE
   24  CLAIMED FOR THE TAXABLE YEAR. A TAXPAYER MAY CLAIM SUCH CREDIT FOR UP TO
   25  TEN CONSECUTIVE TAXABLE YEARS COMMENCING IN THE FIRST TAXABLE YEAR  THAT
   26  THE  TAXPAYER  RECEIVES A CERTIFICATE OF TAX CREDIT OR THE FIRST TAXABLE
   27  YEAR LISTED ON ITS PRELIMINARY SCHEDULE OF BENEFITS, WHICHEVER IS LATER.
   28  HOWEVER, A TAXPAYER SHALL NOT BE ALLOWED TO CLAIM THE  CREDIT  PRIOR  TO
   29  THE  TAX  YEAR COMMENCING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE
   30  AND BEFORE JANUARY FIRST, TWO THOUSAND THIRTEEN.  THE TAXPAYER SHALL  BE
   31  ALLOWED TO CLAIM ONLY THE AMOUNT LISTED ON THE CERTIFICATE OF TAX CREDIT
   32  FOR  THAT TAXABLE YEAR. SUCH CERTIFICATE, IF REQUIRED BY THE COMMISSION-
   33  ER, SHALL BE ATTACHED TO THE TAXPAYER'S RETURN. NO COST OR EXPENSE  PAID
   34  OR INCURRED BY THE TAXPAYER WHICH IS INCLUDED AS PART OF THE CALCULATION
   35  OF THIS CREDIT SHALL BE THE BASIS OF ANY OTHER TAX CREDIT.
   36    (C)  INFORMATION  SHARING.  (1)  NOTWITHSTANDING ANY PROVISION OF THIS
   37  CHAPTER, EMPLOYEES AND OFFICERS OF THE DEPARTMENT OF  ECONOMIC  DEVELOP-
   38  MENT  AND  THE DEPARTMENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND
   39  EXCHANGE:
   40    (A) INFORMATION DERIVED FROM TAX RETURNS OR REPORTS THAT  IS  RELEVANT
   41  TO  A  TAXPAYER'S  ELIGIBILITY  TO  PARTICIPATE IN THE EMPIRE STATE JOBS
   42  RETENTION PROGRAM;
   43    (B) INFORMATION REGARDING THE CREDIT APPLIED FOR, ALLOWED  OR  CLAIMED
   44  PURSUANT  TO  THIS SECTION AND TAXPAYERS WHO ARE APPLYING FOR THE CREDIT
   45  OR WHO ARE CLAIMING THE CREDIT; AND
   46    (C) INFORMATION CONTAINED  IN  OR  DERIVED  FROM  CREDIT  CLAIM  FORMS
   47  SUBMITTED  TO  THE  DEPARTMENT  AND  APPLICATIONS FOR ADMISSION INTO THE
   48  EMPIRE STATE JOBS RETENTION PROGRAM.
   49    EXCEPT AS PROVIDED IN PARAGRAPH TWO OF THIS SUBDIVISION, ALL  INFORMA-
   50  TION  EXCHANGED  BETWEEN  THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE
   51  DEPARTMENT SHALL NOT BE SUBJECT TO DISCLOSURE OR  INSPECTION  UNDER  THE
   52  STATE'S FREEDOM OF INFORMATION LAW.
   53    (2) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, THE COMMISSIONER OR
   54  THE  COMMISSIONER'S  DESIGNEE  IS AUTHORIZED TO RELEASE THE NAME OF EACH
   55  TAXPAYER CLAIMING THE CREDIT AND THE AMOUNT OF THE CREDIT EARNED BY EACH
   56  TAXPAYER. HOWEVER, IF THE TAXPAYER CLAIMS A CREDIT BECAUSE THE  TAXPAYER
       S. 2                               21                               A. 2

    1  IS  A  MEMBER OF A LIMITED LIABILITY COMPANY, A PARTNER IN A PARTNERSHIP
    2  OR A SHAREHOLDER IN A SUBCHAPTER S  CORPORATION,  ONLY  THE  NAME  OF  A
    3  LIMITED  LIABILITY  COMPANY,  PARTNERSHIP  OR  SUBCHAPTER  S CORPORATION
    4  PARTICIPATING  IN THE EMPIRE STATE JOBS RETENTION PROGRAM AND THE AMOUNT
    5  OF CREDIT EARNED BY THAT ENTITY MAY BE RELEASED.
    6    (D) CREDIT RECAPTURE. IF A CERTIFICATE OF ELIGIBILITY OR A CERTIFICATE
    7  OF TAX CREDIT ISSUED BY THE DEPARTMENT  OF  ECONOMIC  DEVELOPMENT  UNDER
    8  ARTICLE  TWENTY  OF  THE  ECONOMIC  DEVELOPMENT  LAW  IS REVOKED BY SUCH
    9  DEPARTMENT, THE AMOUNT OF CREDIT DESCRIBED IN THIS SECTION  AND  CLAIMED
   10  BY  THE  TAXPAYER PRIOR TO THAT REVOCATION SHALL BE ADDED BACK TO TAX IN
   11  THE TAXABLE YEAR IN WHICH ANY SUCH REVOCATION BECOMES FINAL.
   12    (E) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
   13  THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   14    (1) ARTICLE 9-A: SECTION 210, SUBDIVISION 44;
   15    (2) ARTICLE 22: SECTION 606, SUBSECTION (TT);
   16    (3) ARTICLE 32: SECTION 1456, SUBSECTION (Y);
   17    (4) ARTICLE 33, SECTION 1511, SUBDIVISION (BB).
   18    S 3. Section 210 of the tax law is amended by adding a new subdivision
   19  44 to read as follows:
   20    44. EMPIRE STATE JOBS RETENTION PROGRAM CREDIT. (A) ALLOWANCE OF CRED-
   21  IT.  A  TAXPAYER WILL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN
   22  SECTION THIRTY-SIX OF THIS CHAPTER, AGAINST THE TAXES  IMPOSED  BY  THIS
   23  ARTICLE.
   24    (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
   25  FOR ANY TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS
   26  THAN  THE  MINIMUM  TAX FIXED BY THIS ARTICLE. HOWEVER, IF THE AMOUNT OF
   27  CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
   28  TAX  TO  SUCH  AMOUNT,  ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
   29  TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
   30  REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
   31  EIGHTY-SIX OF THIS  CHAPTER.    PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
   32  SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
   33  NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
   34    S 4. Section 606 of the tax law is amended by adding a new  subsection
   35  (tt) to read as follows:
   36    (TT)  EMPIRE  STATE  JOBS  PROGRAM  RETENTION CREDIT. (1) ALLOWANCE OF
   37  CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
   38  IN SECTION THIRTY-SIX OF THIS CHAPTER, AGAINST THE TAX IMPOSED  BY  THIS
   39  ARTICLE.
   40    (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
   41  THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
   42  YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
   43  OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX  HUNDRED
   44  EIGHTY-SIX  OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE
   45  PAID THEREON.
   46    S 5. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
   47  of  the  tax  law  is amended by adding a new clause (xxxiii) to read as
   48  follows:

   49  (XXXIII) EMPIRE STATE JOBS           AMOUNT OF CREDIT UNDER
   50  RETENTION PROGRAM CREDIT             SUBDIVISION FORTY-FOUR
   51                                       OF SECTION TWO HUNDRED TEN
   52                                       OR UNDER SUBSECTION (Y) OF SECTION
   53                                       FOURTEEN HUNDRED FIFTY-SIX
   54    S 6. Section 1456 of the tax law is amended by adding a new subsection
   55  (y) to read as follows:
       S. 2                               22                               A. 2

    1    (Y) EMPIRE STATE JOBS RETENTION PROGRAM CREDIT. (1) ALLOWANCE OF CRED-
    2  IT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED  IN
    3  SECTION  THIRTY-SIX  OF  THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS
    4  ARTICLE.
    5    (2)  APPLICATION  OF  CREDIT. THE CREDIT ALLOWED UNDER THIS SUBSECTION
    6  FOR ANY TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS
    7  THAN  THE  MINIMUM  TAX FIXED BY THIS ARTICLE. HOWEVER, IF THE AMOUNT OF
    8  CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE  YEAR  REDUCES  THE
    9  TAX  TO  SUCH  AMOUNT,  ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
   10  TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
   11  REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
   12  EIGHTY-SIX OF THIS  CHAPTER.    PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
   13  SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
   14  NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
   15    S 7. Section 1511 of the tax law is amended by adding a  new  subdivi-
   16  sion (bb) to read as follows:
   17    (BB)  EMPIRE  STATE  JOBS  RETENTION  PROGRAM CREDIT. (1) ALLOWANCE OF
   18  CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
   19  IN SECTION THIRTY-SIX OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS
   20  ARTICLE.
   21    (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
   22  FOR  ANY  TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
   23  THAN THE MINIMUM TAX FIXED BY THIS ARTICLE. HOWEVER, IF  THE  AMOUNT  OF
   24  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
   25  TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS  NOT  DEDUCTIBLE  IN  SUCH
   26  TAXABLE  YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
   27  REFUNDED IN ACCORDANCE WITH  THE  PROVISIONS  OF  SECTION  ONE  THOUSAND
   28  EIGHTY-SIX  OF  THIS  CHAPTER.    PROVIDED,  HOWEVER,  THE PROVISIONS OF
   29  SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
   30  NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
   31    S  8.  This  act  shall take effect immediately; provided however that
   32  sections two, three, four, five, six and seven of this act  shall  apply
   33  to taxable years beginning on and after January 1, 2012.

   34                                   PART F

   35    Section  1.  This  act shall be known and may be cited as the "Infras-
   36  tructure investment act".
   37    S 2. The legislature hereby finds and declares as follows:
   38    (1) Our state's aging infrastructure, the on-going economic crisis and
   39  the resulting increase in unemployment in the state have all contributed
   40  to a decline  in  our  state's  competitiveness  and  in  a  significant
   41  decrease in New York state tax revenues.
   42    (2)  Sufficient  modern  infrastructure is of paramount importance not
   43  only as a catalyst for job creation but also as a  key  driver  for  the
   44  state's economic performance and competitiveness and the health, safety,
   45  education and quality of life of our citizens and as the means to ensure
   46  the efficient movement of people and goods.
   47    (3)  Expediting  the delivery of projects in New York state would lead
   48  directly to job creation and increases in the state's competitiveness.
   49    (4) Businesses in New York state have extensive and diverse experience
   50  in alternative project delivery methods for the study, planning, design,
   51  development, financing, acquisition, installation, construction,  recon-
   52  struction, improvement, maintenance and management of public infrastruc-
   53  ture  facilities.  These  alternative  project  delivery methods provide
   54  significant benefits to the public by:
       S. 2                               23                               A. 2

    1    (a) Reducing the public cost of delivering and obtaining services  for
    2  infrastructure assets;
    3    (b) Expediting project delivery;
    4    (c) Encouraging life cycle efficiencies;
    5    (d)  Providing  better  use  and  leverage of public human and capital
    6  resources, and enhancing capital formation for large projects;
    7    (e) Creating jobs;
    8    (f) Promoting performance efficiencies; and
    9    (g) Bringing additional innovative best practice  contracting  by  the
   10  private sector to bear on public infrastructure needs within the state.
   11    (5) For certain projects, the design-build project delivery method has
   12  the potential to achieve projects delivered on guaranteed or accelerated
   13  schedules, lower costs and risk shifting to the private sector generally
   14  retained  in conventional design-bid-build projects as well as to accel-
   15  erate capital investments throughout the state.
   16    (6) Recognizing the need to repair the  state's  aging  infrastructure
   17  and maximize job creation in New York, the Governor and Legislature seek
   18  to:
   19    (a) accelerate capital investment in New York state's infrastructure;
   20    (b)  coordinate  among  New  York  state's agencies and authorities on
   21  capital investment;
   22    (c) encourage private sector capital investment in New York;
   23    (d) ensure that job creation benefits New York workers; and
   24    (e) assist the use of the most efficient and effective procurement and
   25  project management for infrastructure projects  in  the  transportation,
   26  energy,   environment,   public  facilities,  and  economic  development
   27  sectors.
   28    S 3. For the purposes of this act:
   29    (a) "authorized state entity" shall mean the New  York  state  thruway
   30  authority, the department of transportation, the office of parks, recre-
   31  ation and historic preservation, the department of environmental conser-
   32  vation and the New York state bridge authority.
   33    (b)  "best  value"  shall  mean  the  basis for awarding contracts for
   34  services to the offerer that  optimize  quality,  cost  and  efficiency,
   35  price  and  performance  criteria, which may include, but is not limited
   36  to:
   37    1. The quality of the contractor's performance on previous projects;
   38    2.  The  timeliness  of  the  contractor's  performance  on   previous
   39  projects;
   40    3.  The  level of customer satisfaction with the contractor's perform-
   41  ance on previous projects;
   42    4. The contractor's record of performing previous projects  on  budget
   43  and ability to minimize cost overruns;
   44    5. The contractor's ability to limit change orders;
   45    6. The contractor's ability to prepare appropriate project plans;
   46    7. The contractor's technical capacities;
   47    8. The individual qualifications of the contractor's key personnel;
   48    9.  The  contractor's  ability  to assess and manage risk and minimize
   49  risk impact; and
   50    10. The contractor's past record of compliance with  article  15-A  of
   51  the executive law.
   52    Such  basis  shall reflect, wherever possible, objective and quantifi-
   53  able analysis.
   54    (c) "capital project" shall have the same  meaning  as  such  term  is
   55  defined by subdivision 2-a of section 2 of the state finance law.
       S. 2                               24                               A. 2

    1    (d)  "cost  plus" shall mean compensating a contractor for the cost to
    2  complete a contract by reimbursing actual costs for labor, equipment and
    3  materials plus an additional amount for overhead and profit.
    4    (e)  "design-build  contract" shall mean a contract for the design and
    5  construction of a capital project with a single entity, which may  be  a
    6  team comprised of separate entities.
    7    (f) "procurement record" means documentation of the decisions made and
    8  the approach taken in the procurement process.
    9    S  4. Notwithstanding the provisions of section 38 of the highway law,
   10  section 136-a of the state  finance  law,  section  359  of  the  public
   11  authorities  law,  section 7210 of the education law, and the provisions
   12  of any other law to the contrary, and in conformity  with  the  require-
   13  ments  of  this act, an authorized state entity may utilize the alterna-
   14  tive delivery method referred to as design-build contracts  for  capital
   15  projects  related to the state's physical infrastructure, including, but
   16  not limited to, the  state's  highways,  bridges,  dams,  flood  control
   17  projects,  canals,  and  parks, including, but not limited to, to repair
   18  damage caused by natural disaster, to correct health and safety defects,
   19  to comply with federal and state laws, standards,  and  regulations,  to
   20  extend  the  useful  life  of  or replace the state's highways, bridges,
   21  dams, flood control projects, canals, and parks or to improve or add  to
   22  the state's highways, bridges, dams, flood control projects, canals, and
   23  parks;  provided  that  for  the contracts executed by the department of
   24  transportation, the office of parks, recreation and  historic  preserva-
   25  tion, or the department of environmental conservation, the total cost of
   26  each  such  project shall not be less than one million two hundred thou-
   27  sand dollars ($1,200,000).
   28    S 5. An entity selected by an authorized state entity to enter into  a
   29  design-build  contract  shall  be selected through a two-step method, as
   30  follows:
   31    (a) Step one. Generation of a list of entities that have  demonstrated
   32  the  general capability to perform the design-build contract.  Such list
   33  shall consist of a specified number of entities,  as  determined  by  an
   34  authorized  state  entity, and shall be generated based upon the author-
   35  ized state entity's review of responses to a publicly advertised request
   36  for qualifications. The authorized state entity's request for qualifica-
   37  tions shall include a general description of the  project,  the  maximum
   38  number  of entities to be included on the list, and the selection crite-
   39  ria to be used in generating the list.  Such  selection  criteria  shall
   40  include the qualifications and experience of the design and construction
   41  team,  organization, demonstrated responsibility, ability of the team or
   42  of a member or members of the team to comply  with  applicable  require-
   43  ments,  including  the  provisions  of  articles 145, 147 and 148 of the
   44  education law, past record of compliance with the labor  law,  and  such
   45  other qualifications the authorized state entity deems appropriate which
   46  may  include  but  are  not  limited to project understanding, financial
   47  capability and record of past performance. The authorized  state  entity
   48  shall evaluate and rate all entities responding to the request for qual-
   49  ifications.   Based upon such ratings, the authorized state entity shall
   50  list the entities that shall receive a request for proposals in  accord-
   51  ance  with  subdivision  (b) of this section.   To the extent consistent
   52  with applicable federal law, the authorized state entity shall consider,
   53  when awarding any contract pursuant to this section,  the  participation
   54  of: (i) firms certified pursuant to article 15-A of the executive law as
   55  minority  or  women-owned businesses and the ability of other businesses
   56  under consideration to work with minority and women-owned businesses  so
       S. 2                               25                               A. 2

    1  as  to  promote  and  assist  participation by such businesses; and (ii)
    2  small business  concerns  identified  pursuant  to  subdivision  (b)  of
    3  section 139-g of the state finance law.
    4    (b) Step two. Selection of the proposal which is the best value to the
    5  state.  The  authorized state entity shall issue a request for proposals
    6  to the entities listed pursuant to subdivision (a) of this section.   If
    7  such  an  entity  consists  of a team of separate entities, the entities
    8  that comprise such a team must remain unchanged from the entity as list-
    9  ed pursuant to subdivision (a) of this section unless otherwise approved
   10  by the authorized state entity. The  request  for  proposals  shall  set
   11  forth the project's scope of work, and other requirements, as determined
   12  by the authorized state entity.  The request for proposals shall specify
   13  the  criteria  to  be  used  to  evaluate the responses and the relative
   14  weight  of  each  such  criteria.    Such  criteria  shall  include  the
   15  proposal's  cost, the quality of the proposal's solution, the qualifica-
   16  tions and experience of  the  design-build  entity,  and  other  factors
   17  deemed  pertinent by the authorized state entity, which may include, but
   18  shall not be limited to, the proposal's project implementation,  ability
   19  to  complete  the  work in a timely and satisfactory manner, maintenance
   20  costs of the completed project, maintenance  of  traffic  approach,  and
   21  community  impact.  Any  contract  awarded pursuant to this act shall be
   22  awarded  to  a  responsive  and  responsible  entity  that  submits  the
   23  proposal,  which, in consideration of these and other specified criteria
   24  deemed pertinent to the project, offers the best value to the state,  as
   25  determined  by  the  authorized  state  entity.  Nothing herein shall be
   26  construed to prohibit  the  authorized  entity  from  negotiating  final
   27  contract terms and conditions including cost.
   28    S  6.  Any  contract entered into pursuant to this act shall include a
   29  clause requiring that any professional services  regulated  by  articles
   30  145, 147 and 148 of the education law shall be performed and stamped and
   31  sealed, where appropriate, by a professional licensed in accordance with
   32  such articles.
   33    S  7.  Construction for each capital project undertaken by the author-
   34  ized state entity pursuant to this act shall be deemed a  "public  work"
   35  to  be  performed  in accordance with the provisions of article 8 of the
   36  labor law, as well as subject to sections 200, 240, 241 and 242  of  the
   37  labor  law  and  enforcement  of prevailing wage requirements by the New
   38  York state department of labor.
   39    S 8. If otherwise  applicable,  capital  projects  undertaken  by  the
   40  authorized state entity pursuant to this act shall be subject to section
   41  135 of the state finance law and section 222 of the labor law.
   42    S  9. Each contract entered into by the authorized state entity pursu-
   43  ant to this section shall comply with the objectives and goals of minor-
   44  ity and women-owned business enterprises pursuant to article 15-A of the
   45  executive law or, for projects receiving federal aid, shall comply  with
   46  applicable federal requirements for disadvantaged business enterprises.
   47    S  10.  Capital  projects  undertaken  by  the authorized state entity
   48  pursuant to this act shall be subject to  the  requirements  of  article
   49  eight  of the environmental conservation law, and, where applicable, the
   50  requirements of the national environmental policy act.
   51    S 11.  If otherwise applicable, capital  projects  undertaken  by  the
   52  authorized  state  entity  pursuant  to  this  act  shall be governed by
   53  sections 139-d, 139-j, 139-k, paragraph f of subdivision 1 and paragraph
   54  g of subdivision 9 of section 163 of the state finance law.
       S. 2                               26                               A. 2

    1    S 12.  The submission of a proposal or responses or the execution of a
    2  design-build contract pursuant to this act shall not be construed to  be
    3  a violation of section 6512 of the education law.
    4    S  13.  Nothing  contained  in this act shall limit the right or obli-
    5  gation of the authorized state entity to comply with the  provisions  of
    6  any  existing  contract, including any existing contract with or for the
    7  benefit of the holders of the obligations of the authorized state  enti-
    8  ty, or to award contracts as otherwise provided by law.
    9    S  14. Alternative construction awarding processes.  (i) Notwithstand-
   10  ing the provisions of any other law  to  the  contrary,  the  authorized
   11  state entity may award a construction contract:
   12    1. To the contractor offering the best value; or
   13    2.  Utilizing  a cost-plus not to exceed guaranteed maximum price form
   14  of contract in which the authorized state entity shall  be  entitled  to
   15  monitor  and  audit  all project costs. In establishing the schedule and
   16  process for determining a guaranteed maximum price, the contract between
   17  the authorized state entity and the contractor shall:
   18    (a) describe the scope of the work and the  cost  of  performing  such
   19  work;
   20    (b) include a detailed line item cost breakdown;
   21    (c)  include a list of all drawings, specifications and other informa-
   22  tion on which the guaranteed maximum price is based;
   23    (d) include the dates for substantial and final  completion  on  which
   24  the guaranteed maximum price is based; and
   25    (e) include a schedule of unit prices; or
   26    3.  Utilizing  a  lump  sum contract in which the contractor agrees to
   27  accept a set dollar amount for a contract which comprises a  single  bid
   28  without  providing a cost breakdown for all costs such as for equipment,
   29  labor, materials, as well as such contractor's profit for completing all
   30  items of work comprising the project.
   31    (ii) Capital projects undertaken by an  authorized  state  entity  may
   32  include  an  incentive  clause  in  the contract for various performance
   33  objectives, but the incentive clause shall not include an incentive that
   34  exceeds the quantifiable value of the benefit received by the state. The
   35  authorized state entity shall establish  such  performance  and  payment
   36  bonds as it deems necessary.
   37    S   15.   Prequalified  contractors.  (a)  Notwithstanding  any  other
   38  provision of law, the authorized state entity may  maintain  a  list  of
   39  prequalified  contractors who are eligible to submit a proposal pursuant
   40  to this act and entry into such list shall  be  continuously  available.
   41  Prospective  contractors  may  be prequalified as contractors to provide
   42  particular types of construction, in accordance  with  general  criteria
   43  established  by the authorized state entity which may include, but shall
   44  not be limited to, the experience, past performance, ability  to  under-
   45  take the type and complexity of work, financial capability, responsibil-
   46  ity, compliance with equal employment opportunity requirements and anti-
   47  discrimination  laws,  and  reliability. Such prequalification may be by
   48  categories designed by size and other factors.
   49    (b) A contractor who is denied prequalification or whose prequalifica-
   50  tion is revoked or suspended by the authorized state entity  may  appeal
   51  such  decision  to  the  authorized  state  entity. If such a suspension
   52  extends for more than three months, it shall be deemed a  revocation  of
   53  the  prequalification.  The authorized state entity may proceed with the
   54  contract award during any appeal.
   55    S 16. Nothing in this act shall affect existing  powers  of  New  York
   56  state public entities to use alternative project delivery methods.
       S. 2                               27                               A. 2

    1    S  17.  This act shall take effect immediately and shall expire and be
    2  deemed repealed 3 years after such date, provided  that,  projects  with
    3  requests for qualifications issued prior to such repeal shall be permit-
    4  ted to continue under this act notwithstanding such repeal.

    5                                   PART G

    6    Section  1.  Short  title. This act shall be known and may be cited as
    7  the "Hurricane Irene and Tropical Storm Lee assessment relief act".
    8    S 2. Definitions. For the purposes of this act,  the  following  terms
    9  shall have the following meanings:
   10    1.  "Eligible  county"  shall  mean  those  counties  which  have been
   11  included in the federal disaster declarations for either Hurricane Irene
   12  or Tropical Storm Lee or both.
   13    2. "Catastrophically impacted property" shall mean a property which is
   14  located in an eligible municipality and which lost fifty percent or more
   15  of its value as a result of either Hurricane Irene or Tropical Storm Lee
   16  or both.
   17    3. "Eligible municipality" shall  mean  a  municipal  corporation,  as
   18  defined  by subdivision ten of section one hundred two of the real prop-
   19  erty tax law, which is either (a) an eligible county,  or  (b)  a  city,
   20  town,  village  or  school  district  that is wholly or partly contained
   21  within an eligible county.
   22    4. "Impacted assessment roll" shall mean a final assessment roll which
   23  satisfies both of the following conditions: (a) the roll is based upon a
   24  taxable status date occurring prior to August twenty-seventh, two  thou-
   25  sand  eleven,  and  (b) taxes levied upon that roll by or on behalf of a
   26  participating municipality are payable  without  interest  on  or  after
   27  August twenty-seventh, two thousand eleven.
   28    5.  "Participating  municipality"  shall  mean  an  eligible municipal
   29  corporation that has chosen to provide assessment relief  to  owners  of
   30  catastrophically  impacted  properties pursuant to section three of this
   31  act.
   32    S  3.  Local  option.  An  eligible  municipality  may  exercise   the
   33  provisions  of  this act if its governing body shall, by the forty-fifth
   34  day following the date upon which this act is approved by the  governor,
   35  pass a resolution adopting the provisions of this act.
   36    S  4.  Assessment  relief  for  flood victims. (a) Notwithstanding any
   37  provision of law to the contrary, where  property  was  catastrophically
   38  impacted  by either Hurricane Irene or Tropical Storm Lee or both and is
   39  located within a participating municipality, assessment relief shall  be
   40  granted as follows:
   41    i.  If the property lost at least fifty but less than sixty percent of
   42  its value due to either Hurricane Irene or Tropical Storm Lee  or  both,
   43  the  taxable  assessed  value of the property shall be reduced by fifty-
   44  five percent for purposes  of  the  participating  municipality  on  the
   45  impacted assessment roll.
   46    ii.  If the property lost at least sixty but less than seventy percent
   47  of its value due to either Hurricane Irene  or  Tropical  Storm  Lee  or
   48  both,  the  taxable  assessed  value of the property shall be reduced by
   49  sixty-five percent for purposes of the participating municipality on the
   50  impacted assessment roll.
   51    iii. If the property lost  at  least  seventy  but  less  than  eighty
   52  percent of its value due to either Hurricane Irene or Tropical Storm Lee
   53  or  both, the taxable assessed value of the property shall be reduced by
       S. 2                               28                               A. 2

    1  seventy-five percent for purposes of the participating  municipality  on
    2  the impacted assessment roll.
    3    iv.  If the property lost at least eighty but less than ninety percent
    4  of its value due to either Hurricane Irene  or  Tropical  Storm  Lee  or
    5  both,  the  taxable  assessed  value of the property shall be reduced by
    6  eighty-five percent for purposes of the  participating  municipality  on
    7  the impacted assessment roll.
    8    v.  If  the  property  lost  at least ninety but less than one hundred
    9  percent of its value due to either Hurricane Irene or Tropical Storm Lee
   10  or both, the taxable assessed value of the property shall be reduced  by
   11  ninety-five  percent  for  purposes of the participating municipality on
   12  the impacted assessment roll.
   13    vi. If the property lost all of its  value  due  to  either  Hurricane
   14  Irene  or  Tropical Storm Lee or both, the taxable assessed value of the
   15  property shall be reduced to zero  for  purposes  of  the  participating
   16  municipality on the impacted assessment roll.
   17    vii. The percentage loss in value for this purpose shall be determined
   18  by the assessor in the manner provided by this act, subject to review by
   19  the board of assessment review.
   20    viii. No reduction in taxable assessed value shall be granted pursuant
   21  to  this act except as specified above. No reduction in taxable assessed
   22  value shall be granted pursuant to this  section  for  purposes  of  any
   23  county, city, town, village or school district which has not adopted the
   24  provisions of this act.
   25    (b)  To  receive  such relief pursuant to this act, the property owner
   26  shall submit a written  request  to  the  assessor  within  ninety  days
   27  following  the  date  upon  which  this act is approved by the governor.
   28  Such request need not be in a particular format but  shall  describe  in
   29  reasonable  detail the damage caused to the property by either Hurricane
   30  Irene or Tropical Storm Lee or both and the condition  of  the  property
   31  following  the  hurricane  or storm or both, and shall be accompanied by
   32  supporting documentation if available.
   33    (c) Upon receiving such a request, the assessor shall make  a  finding
   34  as  to  whether the property lost at least half of its value as a result
   35  of the hurricane or storm  or  both,  and  if  so,  shall  classify  the
   36  percentage loss of value within one of the following ranges:
   37    i. At least fifty percent but less than sixty percent,
   38    ii. At least sixty percent but less than seventy percent,
   39    iii. At least seventy percent but less than eighty percent,
   40    iv. At least eighty percent but less than ninety percent,
   41    v. At least ninety percent but less than one hundred percent, or
   42    vi. one hundred percent.
   43    (d)  The  assessor  shall  mail  written notice of such finding to the
   44  property owner and the participating municipality.  Where  the  assessor
   45  finds  that  the loss in value is less than fifty percent, or classifies
   46  the loss within a lower  range  than  the  property  owner  believes  is
   47  warranted,  the  property  owner  may file a complaint with the board of
   48  assessment review. Such board shall  reconvene  upon  ten  days  written
   49  notice  to the property owner and assessor to hear the appeal and deter-
   50  mine the matter, and shall mail written notice of its  determination  to
   51  the  assessor  and property owner. The provisions of article five of the
   52  real property tax law shall govern the  review  process  to  the  extent
   53  practicable.
   54    (e) Where property has lost at least fifty percent of its value due to
   55  either  Hurricane  Irene  or  Tropical  Storm  Lee  or both, the taxable
   56  assessed value of the property on the impacted assessment roll shall  be
       S. 2                               29                               A. 2

    1  reduced by the appropriate percentage specified in paragraph (a) of this
    2  section,  provided that any exemptions which the property may be receiv-
    3  ing shall be adjusted as necessary to account for such reduction in  the
    4  taxable assessed value.  To the extent the taxable assessed value of the
    5  property  originally  appearing on such roll exceeds the amount to which
    6  it should be reduced pursuant to this act, the excess shall  be  consid-
    7  ered an error in essential fact as defined by section five hundred fifty
    8  of  the  real  property tax law. If the error appears on a tax roll, the
    9  tax roll shall be corrected in  the  manner  provided  by  section  five
   10  hundred fifty-four of the real property tax law or a refund or credit of
   11  taxes  shall  be  granted in the manner provided by section five hundred
   12  fifty-six or five hundred fifty-six-b of the real property tax  law.  If
   13  the error appears on a final assessment roll but not on a tax roll, such
   14  final  assessment  roll  shall  be  corrected  in the manner provided by
   15  section five hundred fifty-three of the real property tax law.
   16    (f) The rights contained in this act shall not otherwise diminish  any
   17  other  legally  available  right  of any property owner or party who may
   18  otherwise lawfully challenge the valuation or  assessment  of  any  real
   19  property or improvements thereon. All remaining rights hereby remain and
   20  shall  be  available to the party to whom such rights would otherwise be
   21  available notwithstanding this act.
   22    S 5. School districts held harmless.  Each  school  district  that  is
   23  wholly  or  partially contained within an eligible county, as defined in
   24  subdivision one of section two of this act, shall be  held  harmless  by
   25  the  state  for  any reduction in state aid that would have been paid as
   26  tax savings pursuant to section 1306-a of  the  real  property  tax  law
   27  incurred due to the provisions of this act.
   28    S  6.    The  director of the office of real property tax services, or
   29  other chief administrative official of that office within the department
   30  of taxation and finance is authorized to develop a  guidance  memorandum
   31  for  use  by assessing units. Such guidance memorandum shall assist with
   32  the implementation of this act and shall be deemed to be binding on  all
   33  assessing  units in counties which implement the provisions of this act.
   34  The guidance memorandum shall have  no  force  or  effect  or  serve  as
   35  authority  for any other act of assessing units or of the interpretation
   36  or implementation of the laws of the state of New York  except  as  they
   37  relate to the specific implementation of this act.
   38    S  7.  This  act  shall take effect immediately and shall be deemed to
   39  have been in full force and effect on and after August 26, 2011.

   40                                   PART H

   41    Section 1.  There is hereby created the Hurricane Irene-Tropical Storm
   42  Lee Flood Recovery Grant Program.
   43    1. (a) Small businesses, farms, multiple dwellings and  not-for-profit
   44  organizations  that  sustained direct physical flood-related damage as a
   45  result of Hurricane Irene or Tropical Storm Lee are  eligible  to  apply
   46  for a grant under this section. Such grant shall be in an amount no more
   47  than $20,000 and shall be used for storm-related repairs and restoration
   48  to structures, and for other storm-related costs, which were not covered
   49  by any other federal, state or local recovery program or any third-party
   50  payors.
   51    (b)  Empire  state  development  shall  administer this grant program,
   52  which shall not exceed $21,000,000.  Empire state development is  hereby
   53  empowered  to  establish  grant  guidelines  and  additional eligibility
   54  criteria, based on available flood damage data  provided  by  applicable
       S. 2                               30                               A. 2

    1  federal agencies, as it deems necessary to effectuate the administration
    2  of  this  program.    In  providing assistance pursuant to this section,
    3  empire state development shall give preference to applicants that demon-
    4  strate  the greatest need, based on available flood damage data provided
    5  by applicable federal agencies.
    6    2. (a) Empire state development, in consultation with  the  department
    7  of  environmental  conservation,  shall  administer  a grant program for
    8  counties for flood mitigation  or  flood  control  projects  in  creeks,
    9  streams,  and  brooks.    Only  counties  that have been included in the
   10  federal disaster declarations for Hurricane Irene or Tropical Storm  Lee
   11  are eligible to apply for a grant under this subdivision.
   12    (b) This grant program shall not exceed $9,000,000.  Individual grants
   13  shall  be  not  less  than $300,000 and not more than $500,000, provided
   14  however, counties may jointly apply for such grants, and the amount  for
   15  such  joint grants may equal the sum of the amounts that would have been
   16  separately available to the individual counties making such joint appli-
   17  cation. Empire state development, in consultation with the department of
   18  environmental conservation,  is  hereby  empowered  to  establish  grant
   19  guidelines and additional eligibility criteria, based on available flood
   20  damage  data provided by applicable federal agencies, as it deems neces-
   21  sary to effectuate the administration  of  this  program.  In  providing
   22  assistance pursuant to this section, empire state development shall give
   23  preference  to  applicants  that demonstrate the greatest need, based on
   24  available flood damage data provided  by  applicable  federal  agencies.
   25  Priority  also  may  be given to remediation which if not undertaken may
   26  result in additional flooding.
   27    3. The director of the budget,  in  consultation  with  the  temporary
   28  president of the senate and the speaker of the assembly, shall develop a
   29  plan  and  criteria  regarding distribution of funding to municipalities
   30  located in an area which was included in a federal disaster  declaration
   31  for either Hurricane Irene or Tropical Storm Lee. Such program shall not
   32  exceed $20,000,000.  The director of the budget may direct and authorize
   33  any  other  state agency to assist in administration and distribution of
   34  these funds.
   35    S 2. This act shall take effect immediately.

   36                                   PART I

   37    Section 1. The real property tax  law  is  amended  by  adding  a  new
   38  section 1326-b to read as follows:
   39    S 1326-B. PAYMENT OF TAXES IN INSTALLMENTS IN CERTAIN SCHOOL DISTRICTS
   40  AFFECTED   BY  FLOODS  OR  NATURAL  DISASTERS.  1.  NOTWITHSTANDING  ANY
   41  PROVISIONS OF THIS CHAPTER OR ANY OTHER GENERAL OR SPECIAL  LAW  TO  THE
   42  CONTRARY, A SCHOOL DISTRICT WHICH IS WHOLLY OR PARTIALLY CONTAINED WITH-
   43  IN  A  COUNTY  WHICH HAS BEEN INCLUDED IN A FEDERAL DISASTER DECLARATION
   44  MAY, BY RESOLUTION IN ANY YEAR DURING WHICH A  FLOOD  OR  OTHER  NATURAL
   45  DISASTER  OCCURS  IN  THE  SIX  MONTHS PRECEDING THE DUE DATE FOR SCHOOL
   46  TAXES, PROVIDE THAT EVERY TAX IN EXCESS OF FIFTY DOLLARS LEVIED  BY  THE
   47  BOARD  PURSUANT  TO LAW MAY BE PAID IN INSTALLMENTS IN AMOUNTS AND DATES
   48  SPECIFIED IN THE RESOLUTION.  SUCH RESOLUTION SHALL APPLY ONLY  FOR  ONE
   49  YEAR;  PROVIDED  THAT  NOTHING SHALL PRECLUDE THE ADOPTION OF ADDITIONAL
   50  SUCH AUTHORIZATIONS IF SUBSEQUENT DISASTERS OCCUR.
   51    2. WHEN SUCH A RESOLUTION IS IN  EFFECT  IN  A  SCHOOL  DISTRICT,  THE
   52  COLLECTING  OFFICER  SHALL BE AUTHORIZED TO RECEIVE SUCH TAXES UNTIL THE
   53  DATE SPECIFIED IN THE RESOLUTION FOR THE PAYMENT OF TAXES. THE  COLLECT-
   54  ING  OFFICER SHALL BE IN ATTENDANCE TO RECEIVE THE INSTALLMENTS OF TAXES
       S. 2                               31                               A. 2

    1  AT THE SAME PLACES AND HOURS SPECIFIED FOR  THE  RECEIPT  OF  THE  FIRST
    2  INSTALLMENT,  AT LEAST THREE DAYS IN EACH WEEK FOR THE TWO WEEKS PRECED-
    3  ING THE FINAL DATE FOR PAYMENT OF THE INSTALLMENTS. IN  THE  EVENT  THAT
    4  THE  FIRST INSTALLMENT OF ANY TAX IS NOT PAID WITHIN THE TIME SPECIFIED,
    5  THE COLLECTING OFFICER MAY RECEIVE THE SAME AT ANY TIME UNTIL THE  EXPI-
    6  RATION  OF  HIS  WARRANT WITH INTEREST AS DETERMINED PURSUANT TO SECTION
    7  NINE HUNDRED TWENTY-FOUR-A OF THIS CHAPTER UNTIL  PAID.  THE  COLLECTING
    8  OFFICER'S  WARRANT  AND  NOTICE OF RECEIPT THEREOF SHALL BE CONFORMED IN
    9  ACCORDANCE WITH THIS SECTION.
   10    3. AT THE EXPIRATION OF HIS WARRANT, THE COLLECTING OFFICER SHALL MAKE
   11  A RETURN OF UNPAID TAXES IN THE SAME MANNER AS PROVIDED IN SECTION THIR-
   12  TEEN HUNDRED THIRTY OR SECTION THIRTEEN HUNDRED THIRTY-TWO OF THIS ARTI-
   13  CLE, AS APPLICABLE.
   14    4. FOR SCHOOL AID PAYMENTS FOR THE TWO THOUSAND  ELEVEN--TWO  THOUSAND
   15  TWELVE  SCHOOL  YEAR,  THE  STATE IS AUTHORIZED TO ADVANCE TO ANY SCHOOL
   16  DISTRICT WHICH ADOPTS A RESOLUTION PURSUANT TO THIS SECTION  ANY  SCHOOL
   17  AID PAYMENT OR PORTION THEREOF AT ANY TIME AUTHORIZED BY THE COMMISSION-
   18  ER  OF  EDUCATION,  THE COMPTROLLER, AND THE DIRECTOR OF THE DIVISION OF
   19  THE BUDGET.
   20    5. A SCHOOL DISTRICT IS AUTHORIZED TO REFUND TO TAXPAYERS ANY PORTIONS
   21  PREVIOUSLY PAID BY TAXPAYERS IF THE SCHOOL BOARD ADOPTS A RESOLUTION  TO
   22  THAT EFFECT, WHICH ESTABLISHES AN INSTALLMENT PAYMENT SCHEDULE.  IF SUCH
   23  RESOLUTION IS ADOPTED, THEN ANY TAXPAYER HAVING PAID ALL OR A PORTION OF
   24  THEIR TAX PAYMENT SHALL BE ENTITLED TO SUCH REFUND UPON ENTERING INTO AN
   25  AGREEMENT  WITH  THE  SCHOOL  DISTRICT  FOR  THE  PAYMENT OF THEIR TAXES
   26  ACCORDING TO THE SCHEDULE ADOPTED BY THE SCHOOL DISTRICT.    ANY  UNPAID
   27  TAXES  SHALL  BE  TIMELY PAID IF THE PAYMENT OTHERWISE COMPORTS WITH THE
   28  RESOLUTION SCHEDULE ADOPTED BY THE SCHOOL DISTRICT.
   29    S 2. This act shall take effect  immediately;  provided  however  that
   30  subdivision  4  of section 1326-b of the real property tax law, as added
   31  by section one of this act shall expire and be deemed repealed  on  June
   32  30, 2012.

   33                                   PART J

   34    Section  1. Section 182 of the executive law, as added by a chapter of
   35  the laws of 2011, amending the executive law, in relation to a  prohibi-
   36  tion  on  diversion of resources from dedicated funds derived from taxes
   37  and fees that support the metropolitan transportation authority  or  the
   38  New  York  city  transit  authority  and  their  subsidiaries in certain
   39  instances, as proposed in legislative bills  numbers  S. 4257-C  and  A.
   40  6766-C, is amended to read as follows:
   41    S 182. Diversion of funds dedicated to the metropolitan transportation
   42  authority  or  the  New  York  city  transit  authority and any of their
   43  subsidiaries to the general fund of the state is  prohibited.  [1.]  The
   44  director  shall be prohibited from diverting revenues derived from taxes
   45  and fees paid by the public into any fund created by law including,  but
   46  not  limited  to  sections eighty-eight-a and eighty-nine-c of the state
   47  finance law and chapter twenty-five of the laws of two thousand nine for
   48  the purpose of funding the metropolitan transportation authority or  the
   49  New  York  city transit authority and any of their subsidiaries into the
   50  general fund of the state or into any  other  fund  maintained  for  the
   51  support of another governmental purpose. No diversion of funds can occur
   52  contrary to this section by an administrative act of the director or any
   53  other  person  in  the executive branch [but can occur only upon] UNLESS
   54  THE GOVERNOR DECLARES A FISCAL EMERGENCY, AND COMMUNICATES SUCH EMERGEN-
       S. 2                               32                               A. 2

    1  CY TO THE TEMPORARY PRESIDENT OF THE SENATE AND SPEAKER OF THE ASSEMBLY,
    2  AND a statute IS enacted into law authorizing  a  diversion  that  would
    3  otherwise be prohibited by this section.
    4    [2.  If any diversion of funds occurs by passage of legislation during
    5  a regular or extraordinary session of the  legislature,  the  budget  or
    6  legislation  diverting  funds shall include a diversion impact statement
    7  which includes the following information:
    8    (a) The amount of the diversion from dedicated mass transit funds;
    9    (b) The amount diverted from each fund;
   10    (c) The amount diverted expressed as current monthly transit fares;
   11    (d) The cumulative amount of diversion  from  dedicated  mass  transit
   12  funds during the preceding five years;
   13    (e) The date or dates when the diversion is to occur; and
   14    (f) A detailed estimate of the impact of diversion from dedicated mass
   15  transit  funds  will  have on the level of mass transit service, mainte-
   16  nance, security, and the current capital program.]
   17    S 2. This act shall take effect on the same date as a chapter  of  the
   18  laws  of  2011, amending the executive law, in relation to a prohibition
   19  on diversion of resources from dedicated funds derived  from  taxes  and
   20  fees  that  support the metropolitan transportation authority or the New
   21  York city transit authority and their subsidiaries in certain instances,
   22  as proposed in legislative bills numbers S. 4257-C and A. 6766-C,  takes
   23  effect.

   24                                   PART K

   25    Section 1. Subdivision (b) of section 13 of chapter 260 of the laws of
   26  2011,  relating to establishing components of the NY-SUNY 2020 challenge
   27  grant program, is amended to read as follows:
   28    (b) [If any such university center campus related  foundation,  alumni
   29  association  or  affiliate  thereof,  any  not-for-profit corporation or
   30  association organized by the president of a university center to further
   31  its purposes, or any limited liability company whose sole member is  any
   32  of  the  foregoing entities, or by the State University of New York, the
   33  State University Construction Fund, or the Dormitory  Authority  of  the
   34  State  of New York, on behalf of a university center at Albany, Bingham-
   35  ton, or Stony Brook does not require a project labor agreement, then any
   36  contractor, subcontractor, lease, grant, bond, covenant or other  agree-
   37  ments  for  a  project  shall  be awarded pursuant to section 135 of the
   38  state finance law] NOTWITHSTANDING SUBDIVISION (A) OF THIS SECTION,  ANY
   39  CONTRACTS  AWARDED  OR  ENTERED INTO PURSUANT TO THE SUNY 2020 CHALLENGE
   40  GRANT PROGRAM BY ANY UNIVERSITY CENTER CAMPUS RELATED FOUNDATION, ALUMNI
   41  ASSOCIATION OR AFFILIATE  THEREOF,  ANY  NOT-FOR-PROFIT  CORPORATION  OR
   42  ASSOCIATION ORGANIZED BY THE PRESIDENT OF A UNIVERSITY CENTER TO FURTHER
   43  ITS  PURPOSES, OR ANY LIMITED LIABILITY COMPANY WHOSE SOLE MEMBER IS ANY
   44  OF THE FOREGOING ENTITIES, OR BY THE STATE UNIVERSITY OF NEW  YORK,  THE
   45  STATE  UNIVERSITY  CONSTRUCTION  FUND, OR THE DORMITORY AUTHORITY OF THE
   46  STATE OF NEW YORK, ON BEHALF OF A UNIVERSITY CENTER AT ALBANY,  BINGHAM-
   47  TON,  OR  STONY  BROOK  SHALL  BE UNDERTAKEN PURSUANT TO A PROJECT LABOR
   48  AGREEMENT, AS DEFINED IN SUBDIVISION 1 OF SECTION 222 OF THE LABOR  LAW,
   49  PROVIDED A STUDY DONE BY OR FOR THE CONTRACTING ENTITY DETERMINES THAT A
   50  PROJECT  LABOR AGREEMENT WILL BENEFIT SUCH CONSTRUCTION, RECONSTRUCTION,
   51  RENOVATION, REHABILITATION, IMPROVEMENT  OR  EXPANSION  THROUGH  REDUCED
   52  RISK OF DELAY, POTENTIAL COST SAVINGS OR POTENTIAL REDUCTION IN THE RISK
   53  OF LABOR UNREST IN LIGHT OF ANY PERTINENT LOCAL HISTORY THEREOF.
       S. 2                               33                               A. 2

    1    S  2.  This act shall take effect immediately; provided, however, that
    2  the amendments to section 13 of chapter 260 of the laws of 2011 made  by
    3  section  one of this act shall not affect the expiration of such section
    4  and shall be deemed to expire therewith.
    5    S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    6  sion,  section  or  part  of  this act shall be adjudged by any court of
    7  competent jurisdiction to the invalid, such judgment shall  not  affect,
    8  impair,  or  invalidate  the remainder thereof, but shall be confined in
    9  its operation to the clause, sentence, paragraph,  subdivision,  section
   10  or part thereof directly involved in the controversy in which such judg-
   11  ment shall have been rendered. It is hereby declared to be the intent of
   12  the  legislature  that  this  act  would  have been enacted even if such
   13  invalid provisions had not been included herein.
   14    S 3. This act shall take effect immediately  provided,  however,  that
   15  the  applicable effective date of Parts A through K of this act shall be
   16  as specifically set forth in the last section of such Parts.
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