Add §42, amd §§208, 210-B, 606 & 615, Tax L; add Art 25 §§1209 - 1217, §1503-a, Ed L
Establishes the "education investment incentives act" and tax credit; provides credits against income and corporate franchise tax for various qualified education investments including scholarships, education funds and home-based instructional materials.
STATE OF NEW YORK
________________________________________________________________________
1976--A
2015-2016 Regular Sessions
IN SENATE
January 16, 2015
___________
Introduced by Sens. GOLDEN, FELDER, ADDABBO, AVELLA, BONACIC, BOYLE,
CROCI, DIAZ, FLANAGAN, FUNKE, GALLIVAN, HAMILTON, HASSELL-THOMPSON,
KLEIN, LANZA, LARKIN, LATIMER, MARCHIONE, MARTINS, SAVINO, VALESKY --
read twice and ordered printed, and when printed to be committed to
the Committee on Rules -- recommitted to the Committee on Rules in
accordance with Senate Rule 6, sec. 8 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the tax law and the education law, in relation to enact-
ing the "education investment incentives act"
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "education investment incentives act".
3 § 2. The tax law is amended by adding a new section 42 to read as
4 follows:
5 § 42. Education investment tax credit. (a) Definitions. For the
6 purposes of this section, the following terms shall have the same defi-
7 nition as provided for in article twenty-five of the education law:
8 "Authorized contribution";
9 "Contribution";
10 "Educational program";
11 "Educational scholarship organization";
12 "Eligible pupil";
13 "Local education fund";
14 "Nonpublic school";
15 "Public education entity";
16 "Public school";
17 "Qualified contribution";
18 "Qualified educator";
19 "Qualified school";
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07927-05-6
S. 1976--A 2
1 "Scholarship"; and
2 "School improvement organization".
3 (b) Allowance of credit. A taxpayer subject to tax under article
4 nine-A or twenty-two of this chapter shall be allowed credit against
5 such tax, pursuant to the provisions referenced in subdivision (l) of
6 this section, with respect to qualified contributions made during the
7 taxable year.
8 (c) Amount of credit. The amount of the credit shall be ninety percent
9 of the taxpayer's total qualified contributions, capped at one million
10 dollars. A taxpayer that is a partner in a partnership, member of a
11 limited liability company or shareholder in an S corporation shall be
12 allowed to claim its pro rata share of the credit earned by the partner-
13 ship, limited liability company or S corporation, provided that such a
14 taxpayer shall not claim credit in excess of the limit imposed by the
15 preceding sentence.
16 (d) Information to be posted on the department's website. The commis-
17 sioner shall maintain on the department's website a running total of the
18 amount of available credit for which taxpayers may apply pursuant to
19 this section. Such running total shall be updated on a daily basis.
20 Additionally, the commissioner shall maintain on the department's
21 website a list of the school improvement organizations, local education
22 funds and educational scholarship organizations approved to issue
23 certificates of receipt pursuant to article twenty-five of the education
24 law. The commissioner shall also maintain on the department's website a
25 list of public education entities, school improvement organizations,
26 local education funds and educational scholarship organizations whose
27 approval to issue certificates of receipt has been revoked along with
28 the date of revocation.
29 (e) Applications for contribution authorization certificates. Prior to
30 making a contribution to a public education entity, school improvement
31 organization, local education fund, or educational scholarship organiza-
32 tion, the taxpayer shall apply to the department for a contribution
33 authorization certificate for such contribution. Such application shall
34 be in the form and manner prescribed by the department. The department
35 may allow taxpayers to make multiple applications on the same form,
36 provided that each contribution listed on such application shall be
37 treated as a separate application and that the department shall issue
38 separate contribution authorization certificates for each such applica-
39 tion.
40 (f) Contribution authorization certificates. 1. Issuance of certif-
41 icates. The commissioner shall issue contribution authorization certif-
42 icates in two phases. In phase one, which begins on the first day of
43 January and ends on the thirty-first day of January, the commissioner
44 shall accept applications for contribution authorization certificates.
45 Commencing after the fifth day of February, the commissioner shall issue
46 contribution authorization certificates for applications received during
47 phase one, provided that if the aggregate total of the contributions for
48 which applications have been received during phase one exceeds the
49 amount of the credit cap in subdivision (h) of this section, then phase
50 one of the credit cap application shall be allocated in two steps. In
51 step one, the allocation shall equal the contribution cap divided by the
52 total number of applications for contributions, rounded down to the
53 nearest cent. Each application requesting an amount which is less than
54 or equal to the allocation in step one shall receive the amount on their
55 application for contribution and the difference, which shall be referred
56 to as "excess distributions" for the purposes of this subdivision, shall
S. 1976--A 3
1 be available for allocation in step two. Each application requesting an
2 amount which exceeds the allocation in step one shall be allocated cred-
3 its in step two. In step two, if excess distributions equal zero then
4 each application shall receive the allocation amount from step one,
5 otherwise each application shall receive an amount equal to the sum of
6 the (i) the allocation amount in step one and (ii) a pro rata share of
7 aggregate excess distributions based on the difference between the
8 amount on their application for contribution and the allocation in step
9 one. For the purposes of this subdivision, multiple applications by the
10 same taxpayer shall be treated as one application. If the credit cap is
11 not exceeded, phase two commences on February twentieth and ends on
12 October thirty-first. During phase two the commissioner shall issue
13 contribution authorization certificates on a first-come first serve
14 basis based upon the date the department received the taxpayer's appli-
15 cation for such certificate. Contribution authorization certificates
16 for applications received during phase one shall be mailed no later than
17 the twentieth day of February. Contribution authorization certificates
18 for applications received during phase two shall be mailed within five
19 days of receipt of such applications.
20 2. Contribution authorization certificate contents. Each contribution
21 authorization certificate shall state (i) the date such certificate was
22 issued, (ii) the date by which the authorized contribution listed on the
23 certificate must be made, which shall be no later than December thirty-
24 first of the year for which the contribution authorization certificate
25 was issued, (iii) the amount of authorized contribution, (iv) the
26 certificate number, (v) the taxpayer's name and address, (vi) the name
27 and address of the public education entity, school improvement organiza-
28 tion, local education fund or educational scholarship organization to
29 which the taxpayer may make the authorized contribution, and (vii) any
30 other information that the commissioner deems necessary.
31 3. Notification of the issuance of a contribution authorization
32 certificate. Upon the issuance of a contribution authorization certif-
33 icate to a taxpayer, the commissioner shall notify the public education
34 entity, school improvement organization, local education fund or educa-
35 tional scholarship organization of the issuance of such contribution
36 authorization certificate. Such notification shall include (i) the
37 taxpayer's name and address, (ii) the date such certificate was issued,
38 (iii) the date by which the authorized contribution listed in the
39 notification must be made by the taxpayer, (iv) the amount of the
40 authorized contribution, (v) the contribution authorization certif-
41 icate's certificate number, and (vi) any other information that the
42 commissioner deems necessary.
43 (g) Certificate of receipt. 1. In general. No public education entity,
44 school improvement organization, local education fund, or educational
45 scholarship organization shall issue a certificate of receipt for any
46 contribution made by a taxpayer unless such public education entity,
47 school improvement organization, local education fund, or educational
48 scholarship organization has been approved to issue certificates of
49 receipt pursuant to article twenty-five of the education law. No public
50 education entity, school improvement organization, local education fund,
51 or educational scholarship organization shall issue a certificate of
52 receipt for a contribution made by a taxpayer unless such public educa-
53 tion entity, school improvement organization, local education fund, or
54 educational scholarship organization has received notice from the
55 department that the department issued a contribution authorization
56 certificate to the taxpayer for such contribution.
S. 1976--A 4
1 2. Timely contribution. If a taxpayer makes an authorized contribution
2 to the public education entity, school improvement organization, local
3 education fund, or educational scholarship organization set forth on the
4 contribution authorization certificate issued to the taxpayer no later
5 than the date by which such authorized contribution is required to be
6 made, such public education entity, school improvement organization,
7 local education fund, or educational scholarship organization shall,
8 within thirty days of receipt of the authorized contribution, issue to
9 the taxpayer a certificate of receipt; provided, however, that if the
10 taxpayer contributes an amount that is less than the amount listed on
11 the taxpayer's contribution authorization certificate, the taxpayer
12 shall not be issued a certificate of receipt for such contribution.
13 3. Certificate of receipt contents. Each certificate of receipt shall
14 state (i) the name and address of the issuing public education entity,
15 school improvement organization, local education fund, or educational
16 scholarship organization, (ii) the taxpayer's name and address, (iii)
17 the date for each contribution, (iv) the amount of each contribution and
18 the corresponding contribution authorization certificate number, (v) the
19 total amount of contributions, (vi) certificate of receipt number and
20 (vii) any other information that the commissioner may deem necessary.
21 4. Notification to the department for the issuance of a certificate of
22 receipt. Upon the issuance of a certificate of receipt, the issuing
23 public education entity, school improvement organization, local educa-
24 tion fund, or educational scholarship organization shall, within thirty
25 days of issuing the certificate of receipt, provide the department with
26 notification of the issuance of such certificate in the form and manner
27 prescribed by the department.
28 5. Notification to the department of the non-issuance of a certificate
29 of receipt. Each public education entity, school improvement organiza-
30 tion, local education fund, or educational scholarship organization that
31 received notification from the department pursuant to subdivision (f) of
32 this section regarding the issuance of a contribution authorization
33 certificate to a taxpayer shall, within thirty days of the expiration
34 date for such authorized contribution, provide notification to the
35 department for each taxpayer that failed to make the authorized contrib-
36 ution to such public education entity, school improvement organization,
37 local education fund, or educational scholarship organization in the
38 form and manner prescribed by the department.
39 6. Failure to notify the department. Within thirty days of the discov-
40 ery of the failure of any public education entity, school improvement
41 program, local education fund, or educational scholarship organization
42 to comply with the notification requirements prescribed by paragraphs
43 four and five of this subdivision, the commissioner shall issue a notice
44 of compliance failure to such entity, program, fund, or organization.
45 Such entity, program, fund, or organization shall have thirty days from
46 the date of such notice to make the notifications prescribed by para-
47 graphs four and five of this subdivision. Such period may be extended
48 for an additional thirty days upon the request of the entity, program,
49 fund, or organization. Upon the expiration of period for compliance set
50 forth in the notice prescribed by this paragraph, the commissioner shall
51 notify the board of regents and the commissioner of education that such
52 entity, program, fund, or organization failed to make the notifications
53 prescribed by paragraphs four and five of this subdivision.
54 (h) Credit cap. The maximum permitted credits under this section
55 available to all taxpayers for qualified contributions for calendar year
56 two thousand seventeen shall be one hundred fifty million dollars. In
S. 1976--A 5
1 calendar year two thousand eighteen, the maximum permitted credits under
2 this section available to all taxpayers shall be two hundred twenty-five
3 million dollars plus any amounts that are required to be added to the
4 cap pursuant to subdivision (i) of this section. For calendar year two
5 thousand nineteen and each calendar year thereafter, the maximum permit-
6 ted credits available to all taxpayers shall be three hundred million
7 dollars plus any amounts that are required to be added to the cap pursu-
8 ant to subdivision (i) of this section. The maximum permitted credits
9 under this section for qualified contributions shall be allocated fifty
10 percent to public education entities, school improvement organizations,
11 and local education funds and fifty percent to educational scholarship
12 organizations.
13 (i) Additions to credit cap. Unissued certificates of receipt. Any
14 amounts for which the department receives notification of non-issuance
15 of a certificate of receipt shall be added to the cap prescribed in
16 subdivision (h) of this section for the immediately following year.
17 (j) Regulations. The commissioner is hereby authorized to promulgate
18 and adopt on an emergency basis regulations necessary for the implemen-
19 tation of this section.
20 (k) Written report. On or before the last day of June for each calen-
21 dar year, for the immediately preceding year, the commissioner and the
22 commissioner of education shall jointly submit a written report to the
23 governor, the temporary president of the senate, the speaker of the
24 assembly, the chairman of the senate finance committee and the chairman
25 of the assembly ways and means committee regarding the education invest-
26 ment tax credit. Such report shall contain information for articles
27 nine-A and twenty-two, respectively, regarding: (i) the number of appli-
28 cations received; (ii) the number of and aggregate value of the contrib-
29 ution authorization certificates issued for contributions to public
30 education entities, school improvement organizations, local education
31 funds, and scholarship organizations, respectively; (iii) the geograph-
32 ical distribution by county of (A) the applications for contribution
33 authorization certificates, distribution by county of (B) the public
34 education entities, school improvement organizations, local education
35 funds, and educational scholarship organizations listed on the issued
36 contribution authorization certificates; and (iv) information, including
37 geographical distribution by county, of the number of eligible pupils
38 that received scholarships, the number of qualified schools attended by
39 eligible pupils that received such scholarships, and the average value
40 of scholarships received by such eligible pupils. The commissioner and
41 designated employees of the department, the board of regents, the
42 commissioner of education and designated employees of the state educa-
43 tion department, shall be allowed and are directed to share and exchange
44 information regarding the school improvement organizations, local educa-
45 tion funds and educational scholarship organizations that applied for
46 approval to be authorized to receive qualified contributions; and the
47 public education entities, school improvement organizations, local
48 education funds, and educational scholarship organizations authorized to
49 issue certificates of receipt, including information contained in or
50 derived from application forms and reports submitted to the education
51 department or board of regents.
52 (l) Cross references. For application of the credit provided for in
53 this section, see the following provisions of this chapter:
54 1. Article 9-A: section 210-B; subdivision 49;
55 2. Article 22: section 606; subsections (i) and (ccc).
S. 1976--A 6
1 § 3. Paragraph (b) of subdivision 9 of section 208 of the tax law is
2 amended by adding a new subparagraph 22 to read as follows:
3 (22) The amount of any deduction allowed pursuant to section one
4 hundred seventy of the internal revenue code for which a credit is
5 claimed pursuant to subdivision forty-nine of section two hundred ten-B
6 of this article.
7 § 4. Section 210-B of the tax law is amended by adding a new subdivi-
8 sion 49 to read as follows:
9 49. Education investment tax credit. (a) Allowance of credit. A
10 taxpayer shall be allowed a credit, to be computed as provided in
11 section forty-two of this chapter, against the tax imposed by this arti-
12 cle.
13 (b) Application of credit. The credit allowed under this subdivision
14 for any taxable year shall not reduce the tax due for that year to less
15 than the higher of the amounts prescribed in paragraphs (c) or (d) of
16 subdivision one of section two hundred ten of this article. However, if
17 the amount of credit allowed under this subdivision for qualified
18 contributions for any taxable year reduces the tax to such amount, any
19 amount of credit not deductible in such taxable year may be carried over
20 to the succeeding five years and may be deducted from the taxpayer's tax
21 for such year or years.
22 § 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
23 of the tax law is amended by adding a new clause (xli) to read as
24 follows:
25 (xli) Education investmentAmount of credit under subdivision
26 tax credit under subsection (ccc)forty-nine of section two hundred
27 ten-B
28 § 6. Section 606 of the tax law is amended by adding two new
29 subsections (w) and (w-1) to read as follows:
30 (w) Home-based instructional materials credit. (1) For taxable years
31 beginning on or after January first, two thousand seventeen, a taxpayer
32 shall be allowed a credit against the tax imposed by this article for
33 the purchase of instructional materials approved by the education
34 department or board of regents for use in non-public home-based educa-
35 tional programs; provided, that the amount of credit claimed does not
36 exceed the lesser of two hundred dollars or one hundred percent of the
37 cost of such purchases made by the taxpayer during the taxable year.
38 (2) A husband and wife who file separate returns for a taxable year in
39 which they could have filed a joint return may each claim only one-half
40 of the tax credit that would have been allowed for a joint return.
41 (3) If the amount of the credit allowed under this subsection for any
42 taxable year shall exceed the taxpayer's tax for such year, the excess
43 shall be treated as an overpayment of tax to be credited or refunded in
44 accordance with the provisions of section six hundred eighty-six of this
45 article, provided, however, that no interest shall be paid thereon.
46 (w-1) Instructional materials and supplies credit. (1) For taxable
47 years beginning on and after January first, two thousand seventeen, a
48 taxpayer shall be allowed a credit equal to the lesser of the amount
49 paid by the taxpayer during the taxable year for instructional materials
50 and supplies, or two hundred dollars; provided that the taxpayer is a
51 teacher or instructor in a qualified school, as defined in section
52 forty-two of this chapter, for at least nine hundred hours during a
53 school year. For purposes of this subsection, the term "materials and
54 supplies" means instructional materials or supplies that are used in the
55 classroom in any qualified school.
S. 1976--A 7
1 (2) A husband and wife who file separate returns for a taxable year in
2 which they could have filed a joint return may each claim only one-half
3 of the tax credit that would have been allowed for a joint return.
4 (3) If the amount of the credit allowed under this subsection for any
5 taxable year shall exceed the taxpayer's tax for such year, the excess
6 shall be treated as an overpayment of tax to be credited or refunded in
7 accordance with the provisions of section six hundred eighty-six of this
8 article, provided, however, that no interest shall be paid thereon.
9 § 7. Section 606 of the tax law is amended by adding a new subsection
10 (ccc) to read as follows:
11 (ccc) Education investment tax credit. (1) Allowance of credit. A
12 taxpayer shall be allowed a credit to be computed as provided in section
13 forty-two of this chapter, against the tax imposed by this article.
14 (2) Application of credit. If the amount of the credit allowed under
15 this subsection for any qualified contributions for any taxable year
16 exceeds the taxpayer's tax for such year, the excess may be carried over
17 to the succeeding five years and may be deducted from the taxpayer's tax
18 for such year or years.
19 § 8. Subsection (c) of section 615 of the tax law is amended by adding
20 a new paragraph 9 to read as follows:
21 (9) The amount of any federal deduction for contributions made for
22 which a taxpayer claims a credit under subsection (ccc) of section six
23 hundred six of this article.
24 § 9. The education law is amended by adding a new article 25 to read
25 as follows:
26 ARTICLE 25
27 EDUCATION INVESTMENT TAX CREDIT PROGRAM
28 Section 1209. Short title.
29 1210. Definitions.
30 1211. Approval to issue certificates of receipt.
31 1212. Applications for approval to issue certificates of
32 receipt.
33 1213. Application approval.
34 1214. Revocation of approval to issue certificates of receipt.
35 1215. Recordkeeping.
36 1216. Joint annual report.
37 1217. Commissioner; powers.
38 § 1209. Short title. This article shall be known and may be cited as
39 the "education investment tax credit program".
40 § 1210. Definitions. As used in this article, the following terms
41 shall have the following meanings:
42 1. "Authorized contribution" means the contribution amount listed on
43 the contribution authorization certificate issued to a taxpayer.
44 2. "Contribution" means a donation paid by cash, check, electronic
45 funds transfer, debit card or credit card made by the taxpayer during
46 the tax year.
47 3. "Educational program" means an academic program of a public school
48 that enhances the curriculum, or provides or expands a pre-kindergarten
49 program or an after-school program to the public school. For purposes of
50 this definition, the instruction, materials, programs or other activ-
51 ities offered by or through an educational program may include, but are
52 not limited to, the following features: (a) instruction or materials
53 promoting health, physical education, and family and consumer sciences;
54 literary, performing and visual arts; mathematics, social studies, tech-
55 nology and scientific achievement; (b) instruction or programming to
56 meet the education needs of at-risk students or students with disabili-
S. 1976--A 8
1 ties, including tutoring or counseling; or (c) use of specialized
2 instructional materials, instructors or instruction not provided by a
3 public school.
4 4. "Educational scholarship organization" means a not-for-profit enti-
5 ty which (a) is exempt from taxation under paragraph three of subsection
6 (c) of section five hundred one of the internal revenue code, (b)
7 commits for the expenditure of at least ninety percent of the revenue
8 from qualified contributions received during the calendar year and any
9 income derived from qualified contributions for scholarships, (c) depos-
10 its and holds qualified contributions and any income derived from quali-
11 fied contributions in an account that is separate from the organiza-
12 tion's operating or other funds until such qualified contributions or
13 income are withdrawn for use, and (d) provides scholarships to eligible
14 pupils for use at no fewer than three qualified schools.
15 5. "Eligible pupil" means a child who (a) is a resident of this state,
16 (b) is school age in accordance with subdivision one of section thirty-
17 two hundred two of this chapter or who is four years of age on or before
18 December first of the year in which they are enrolled in a pre-kinder-
19 garten program, (c) attends or is about to attend a qualified school,
20 and (d) resides in a household that has a federal adjusted gross income
21 of five hundred thousand dollars or less, provided however, for house-
22 holds with three or more dependent children, such income level shall be
23 increased by ten thousand dollars per dependent child in excess of two,
24 not to exceed five hundred fifty thousand dollars.
25 6. "Local education fund" means a not-for-profit entity which (a) is
26 exempt from taxation under paragraph three of subsection (c) of section
27 five hundred one of the internal revenue code, (b) is established for
28 the purpose of supporting an educational program in at least one public
29 school, or public school district, (c) uses at least ninety percent of
30 the qualified contributions received during the calendar year and any
31 income derived from qualified contributions to support the public school
32 or schools or public school district or districts that such fund has
33 been established to support, and (d) deposits and holds qualified
34 contributions and any income derived from qualified contributions in an
35 account that is separate from the fund's operating or other funds until
36 such qualified contributions or income are withdrawn for use.
37 7. "Nonpublic school" means any not-for-profit pre-kindergarten
38 program or elementary, secondary sectarian or nonsectarian school
39 located in this state, other than a public school, that is providing
40 instruction at one or more locations to a student in accordance with
41 subdivision two of section thirty-two hundred four of this chapter.
42 8. "Public education entity" means a public school or a public school
43 district, provided that such public school, or public school district
44 deposits and holds qualified contributions and any income derived from
45 qualified contributions in an account that is separate from the public
46 school or public school district's operating or other funds until such
47 qualified contributions or income are withdrawn for use, and is approved
48 to issue certificates of receipt pursuant to this article.
49 9. "Public school" means any free elementary or secondary school in
50 this state guaranteed by article eleven of the constitution or charter
51 school authorized by article fifty-six of this chapter.
52 10. "Qualified contribution" means the authorized contribution made by
53 a taxpayer to the public education entity, school improvement organiza-
54 tion, local education fund, or educational scholarship organization that
55 is listed on the contribution authorization certificate issued to the
56 taxpayer and for which the taxpayer has received a certificate of
S. 1976--A 9
1 receipt from such entity, fund, or organization. A contribution does
2 not qualify if the taxpayer designates the taxpayer's contribution to an
3 entity or organization for the direct benefit of any particular or spec-
4 ified student.
5 11. "Qualified educator" means an individual who is a teacher or
6 instructor in a qualified school for at least nine hundred hours during
7 a school year.
8 12. "Qualified school" means a public school or nonpublic school.
9 13. "Scholarship" means an educational scholarship which provides a
10 tuition grant awarded to an eligible pupil to attend a qualified school
11 in an amount not to exceed the tuition charged to attend such school
12 less any other educational scholarship received by such eligible pupil
13 or his or her parent, parents or guardian for such eligible pupil's
14 tuition; provided, however, in the case of an eligible pupil attending a
15 public school in a public school district of which such pupil is not a
16 resident, the amount of the educational scholarship awarded may not
17 exceed the tuition charged by the public school pursuant to paragraph d
18 of subdivision four of section thirty-two hundred two of this chapter
19 less any other educational scholarship received by such eligible pupil
20 or his or her parent, parents or guardian for such eligible pupil's
21 tuition, but only if the public school district of which such pupil is a
22 resident is not required to pay for such tuition.
23 14. "School improvement organization" means a not-for-profit entity
24 which (i) is exempt from taxation under paragraph three of subsection
25 (c) of section five hundred one of the internal revenue code, (ii) uses
26 at least ninety percent of the qualified contributions received during
27 the calendar year and any income derived from such qualified contrib-
28 utions to assist public schools or public school districts located in
29 this state in their provision of educational programs, either by making
30 contributions to one or more public schools or public school districts
31 located in this state or providing educational programs to, or in
32 conjunction with, one or more public schools or public school districts
33 located in this state, (iii) deposits and holds qualified contributions
34 and any income derived from such qualified contributions in an account
35 that is separate from the organization's operating or other funds until
36 such qualified contributions or income are withdrawn for use, and (iv)
37 is approved to issue certificates of receipt pursuant to this article.
38 Such entity may allow the taxpayer to choose to donate to a program,
39 project or initiative identified by a qualified educator for use in a
40 public school.
41 § 1211. Approval to issue certificates of receipt. 1. Public schools
42 and public school districts. All public schools and public school
43 districts shall be approved to issue certificates of receipt provided,
44 that a public school or public school district shall not be approved if
45 either (a) the public school or public school district fails to deposit
46 and hold qualified contributions and any income derived from qualified
47 contributions in an account that is separate from the school or school
48 district's operating or other funds until such qualified contributions
49 or income are withdrawn for use, or (b) the board of regents has revoked
50 such approval for such public school or public school district pursuant
51 to section twelve hundred fourteen of this article.
52 2. School improvement organizations, educational scholarship organiza-
53 tions and local education funds. No school improvement organization,
54 educational scholarship organization or local education fund shall issue
55 any certificates of receipt without filing an application pursuant to
S. 1976--A 10
1 section twelve hundred twelve of this article and receiving approval
2 pursuant to section twelve hundred thirteen of this article.
3 § 1212. Applications for approval to issue certificates of receipt.
4 Each school improvement organization, educational scholarship organiza-
5 tion, and local education fund shall submit an application to the board
6 of regents for approval to issue certificates of receipt in the form and
7 manner prescribed by the board; provided that such application shall
8 include: (a) submission of documentation that such school improvement
9 organization, local education fund or educational scholarship organiza-
10 tion has been granted exemption from taxation under paragraph three of
11 subsection (c) of section five hundred one of the internal revenue code;
12 (b) the most recent annual financial audit, which shall be completed by
13 an independent certified public accountant and a list of names and
14 addresses of all members of the governing board of the school improve-
15 ment organization, local education fund or educational scholarship
16 organization; and (c) an educational scholarship organization shall
17 provide criteria for the awarding of scholarships to eligible students.
18 The board of regents, commissioner or department shall not require any
19 other information for such application except as authorized in this
20 article or by section forty-two of the tax law.
21 § 1213. Application approval. The board of regents shall review each
22 application to issue certificates of receipt pursuant to this article.
23 Approval or denial of an application shall be made at the next scheduled
24 meeting of the board of regents that follows the receipt of such appli-
25 cation, but not later than the next meeting thereafter.
26 § 1214. Revocation of approval to issue certificates of receipt. The
27 board of regents, in consultation with the commissioner of taxation and
28 finance, may revoke the approval of a school improvement organization,
29 educational scholarship organization, local education fund, public
30 school or public school district to issue certificates of receipt upon a
31 finding that such organization, fund, school or school district has
32 violated this article or section forty-two of the tax law. These
33 violations shall include, but not be limited to, any of the following:
34 (a) failure to meet the requirements of this article or section forty-
35 two of the tax law, (b) the failure to maintain full and adequate
36 records with respect to the receipt of qualified contributions, (c) the
37 failure to supply such records to the commissioner, department of taxa-
38 tion and finance or board of regents when requested by the department or
39 board, or (d) the failure to provide notice to the department of taxa-
40 tion and finance of the issuance or nonissuance of certificates of
41 receipt pursuant to section forty-two of the tax law; provided however,
42 that the board of regents shall not revoke approval pursuant to this
43 section based upon a violation of the tax law unless the commissioner of
44 taxation and finance agrees that revocation is warranted; and provided
45 further that the board shall not revoke approval pursuant to this
46 section when the failure to comply is due to clerical error and not
47 negligence or intentional disregard for the law. Within five days of the
48 determination revoking approval, the board shall provide notice of such
49 revocation to the educational scholarship organization, school improve-
50 ment organization, local education fund, public school, or public school
51 district and to the department of taxation and finance.
52 § 1215. Recordkeeping. Each school improvement organization, educa-
53 tional scholarship organization, local education fund, public school and
54 public school district that issued at least one certificate of receipt
55 shall maintain records including (a) notifications received from the
56 department of taxation and finance, (b) notifications made to the
S. 1976--A 11
1 department of taxation and finance, (c) copies of qualified contrib-
2 utions received, (d) copies of the deposit of such qualified contrib-
3 utions, (e) copies of issued certificates of receipt, (f) annual finan-
4 cial statements, (g) in the case of school improvement organizations,
5 educational scholarship organizations and local education funds, the
6 application submitted pursuant to section twelve hundred twelve of this
7 article and the approval issued by the board of regents, and (h) any
8 other information as prescribed by regulation promulgated by the commis-
9 sioner or rule promulgated by the board of regents.
10 § 1216. Joint annual report. On or before the last day of June for
11 each calendar year, the commissioner of taxation and finance and the
12 commissioner, jointly, shall submit a written report as provided in
13 subdivision (k) of section forty-two of the tax law.
14 § 1217. Commissioner; powers. The commissioner shall promulgate on an
15 emergency basis regulations necessary for the implementation of this
16 section. The commissioner shall make any application required to be
17 filed pursuant to this article available to applicants within sixty days
18 of the effective date of this article.
19 § 10. The education law is amended by adding a new section 1503-a to
20 read as follows:
21 § 1503-a. Power to accept and solicit gifts and donations. 1. All
22 school districts organized by special laws or pursuant to the provisions
23 of a general law are hereby authorized and empowered to accept gifts,
24 donations, and contributions to the district and to solicit the same.
25 2. Notwithstanding any other provision of this chapter or of any other
26 general or special law to the contrary, the receipt of such gifts,
27 donations, contributions and other funds, and any income derived there-
28 from, shall be disregarded for the purposes of all apportionments,
29 computations, and determinations of state aid.
30 § 11. Severability. If any provision of this section or the applica-
31 tion thereof to any person or circumstances is held invalid, such inva-
32 lidity shall not affect other provisions or applications of the section
33 which can be given effect without the invalid provision or application,
34 and to this end the provisions of this section are declared to be sever-
35 able.
36 § 12. This act shall take effect immediately and shall apply to taxa-
37 ble years beginning after December 31, 2016.
