NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8481A
SPONSOR: Dinowitz TITLE OF BILL: An act to amend the state finance law, the tax law and
the public health law, in relation to establishing the New York state
prostate cancer research, detection and education fund; and to repeal
section 95-e of the state finance law relating thereto
PURPOSE OR GENERAL IDEA OF BILL: This bill would repeal the enabling
section of the state finance law which has led to almost two million
dollars directed to the New York state prostate cancer research,
detection and education fund via a tax check off to not be distributed
to any recipient organizations.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 repeals section 95-e of the state finance law, as added by
chapter 273 of the laws of 2004 and adds a new section 95-e that estab-
lishes the "New York State Prostate Cancer Research, Detection, and
Education Fund."
(2) Provides revenue for the fund pursuant to provisions of section two
hundred nine-B and six hundred thirty of the tax law, all revenues
appropriated by the legislature, and all moneys appropriated, credited,
or transferred from any other fund pursuant to law. Also, for each
fiscal year, the state shall appropriate a fund, in addition to all
other moneys required to be deposited, an amount equal to the amounts of
moneys collected and deposited into the fund pursuant to sections two
hundred nine-e and six hundred thirty of the tax law during the preced-
ing calendar year, as certified by the comptroller. States that nothing
in this section shall prevent the state from receiving gifts, grants or
bequests for the purpose of the fund. Any interest received by the comp-
troller on moneys on deposits shall be retained and become part of such
fund.
(3) Establishes the annual period by which the comptroller shall certify
to the governor, temporary president of the senate, speaker of the
assembly, chair of the senate finance committee, and chair of assembly
ways and means committee, the amount of money deposited in the fund
during the previous year.
(4) Establishes guidelines relating to expenditures for "Prostate cancer
research, detection and education projects and provides definitions for
said expenditures.
(5) Establishes that monies shall be payable from the fund on the audit
and warrant of the comptroller on vouchers approved by the commissioner
of health.
(6) States that commissioner of health shall ensure that all monies
received are expended by the end of the fiscal year.
Section 2 Amends section 209-E of chapter 273 of the laws of 2004 by
establishing the process by which taxpayers may contribute to the
support of the New York State prostate cancer research, detection, and
education fund by space provided on the corporate income tax return,
provided that such contribution shall not reduce the amount of state tax
owed by such taxpayer.
Section 3 amends Section 630 of the tax law, as added by chapter 273 of
the laws of 2004 by establishing the process by which taxpayers may
contribute to the support of the New York state prostate cancer
research, detection, and education fund by space provided on the
personal income tax return, provided that such contribution shall not
reduce the amount of state tax owed by such taxpayer.
Section 4 amends the opening paragraph of paragraph (k) of subdivision 1
of section 2807-v of the public health law, as amended by section 8 of
part C of chapter 59 of the laws of 2011 by providing for the transfer
of five hundred thousand dollars on an annualized basis from the health
care services account, or any successor fund or account to the New York
state prostate cancer research, detection, and education fund.
Section 5 states this act shall take effect immediately.
JUSTIFICATION: Since enabling legislation in 2004, New York taxpayers
have been able to donate money to prostate cancer research and education
programs through a tax check off.
New York taxpayers have generously donated $1.8 million through their
returns to aid the fight against prostate cancer, but researchers and
education programs -the intended recipients of the money - have not
received any funds. The prostate cancer research fund is one of eight
causes state-residents can support through a check off on their tax
forms. However, unlike the other check offs, the legislation that under-
pins the prostate cancer check off narrowly limits the funds to a single
non-profit.
A recent OSC audit shows the Prostate Cancer Fund has not yet paid out
money as of December 2012, leaving $1.8m in unused funds. According to
the audit, the fund managed by the comptroller is titled the "Prostate
and Testicular Cancer Research Fund which is not reflected in legis-
lation. Funds are fed to the both the breast cancer check off and the
prostate cancer check from check off laws in the Tax Law. The fund
itself is created by State Finance Law Section 95-e which is the root of
the problem, and this legislation intends to fix. The breast cancer
check off, like the majority of other income tax check offs, directs
funds to a DOB administered fund, NOT a single not for profit entity;
particularly not one like the New York State Coalition to Cure Prostate
Cancer which according to recent press reports: "...did not exist before
2004, the year the check off law passed, and the Internal Revenue
Service automatically revoked its federal tax-exempt status in 2011 for
failing to submit required returns three years in a row."
The proposed legislation would bring the Prostate cancer check box in
line with the Breast Cancer check box which has two similar check box
enabling sections in the Tax law and a fund created by State Finance Law
Section 97-Y-Y.
PRIOR LEGISLATIVE HISTORY: New Bill
FISCAL IMPLICATIONS: Minimal fiscal impact.
EFFECTIVE DATE: This act shall take effect immediately.
