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A06721 Summary:

BILL NOA06721A
 
SAME ASSAME AS UNI. S04610-A
 
SPONSORBudget
 
COSPNSR
 
MLTSPNSR
 
Amd Various Laws, generally
 
Enacts various provisions of law necessary to implement the state fiscal plan for the 2015-2016 state fiscal year; relates to construction of a civic center in Albany county and repayment of an appropriation therefor (part A); relates to START-UP NY airport facilities (part B); relates to school transportation aid (part C); enacts provisions relating to taxation on business corporations in NYC (part D); establishes a commission on legislative, judicial and executive compensation (part E); permits authorized state entities to utilize the design-build method for infrastructure projects (part F); establishes the New York state water infrastructure improvement act of 2015 (part G); relates to the creation of a new dedicated infrastructure investment fund (part H); provides for the administration of certain funds and accounts related to the 2015-16 budget (part I); establishes the health care facility transformation program in Kings and Oneida counties, the health care provider support program and the capital restructuring financing program (part J).
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A06721 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 4610--A                                            A. 6721--A
 
                SENATE - ASSEMBLY
 
                                     March 31, 2015
                                       ___________
 
        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 -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee
 
        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 -- again reported from said committee with
          amendments, ordered reprinted  as  amended  and  recommitted  to  said
          committee
 
        AN ACT to amend chapter 41 of the laws of 1985 relating to providing for
          the construction of a civic center in Albany and making appropriations
          relating  to  the  construction  of  such facility, in relation to the
          repayment of such appropriation (Part A); to amend the economic devel-
          opment law, in relation to START-UP NY airport facilities (Part B); to
          amend the education law, in relation to transportation aid  (Part  C);
          to  amend the administrative code of the city of New York, in relation
          to the taxation of business  corporations  (Part  D);  establishing  a
          commission  on  legislative,  judicial and executive compensation, and
          providing for the powers and duties of  the  commission  and  for  the
          dissolution of the commission and repealing chapter 567 of the laws of
          2010  relating  to  establishing a special commission on compensation,
          and providing for their powers and duties;  and  to  provide  periodic
          salary  increases  to  state  officers  (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 expira-
          tion  thereof  (Part F); establishing the New York State water infras-
          tructure improvement act of 2015 (Part G); to amend the state  finance
          law,  in  relation  to  the creation of a new dedicated infrastructure
          investment fund (Part H); and to provide  for  the  administration  of
          certain  funds and accounts related to the 2015-16 budget, authorizing
          certain payments and transfers; to amend the  state  finance  law,  in
          relation to the rainy day reserve fund and the school tax relief fund;
          to amend the state finance law, in relation to payments, transfers and
          deposits;  to amend the state finance law, in relation to the issuance
          of bonds and notes; to amend the  New  York  state  urban  development
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12578-02-5

        S. 4610--A                          2                         A. 6721--A
 
          corporation  act,  in  relation  to  funding project costs for certain
          capital projects; to amend chapter 389 of the laws of  1997,  relating
          to  the  financing of the correctional facilities improvement fund and
          the  youth  facility  improvement fund, in relation to the issuance of
          bonds; to amend the private housing finance law, in relation to  hous-
          ing program bonds and notes; to amend chapter 329 of the laws of 1991,
          amending  the  state finance law and other laws relating to the estab-
          lishment of the dedicated highway and bridge trust fund,  in  relation
          to  the  issuance  of  bonds;  to amend the public authorities law, in
          relation to the dormitory authority; to amend chapter 61 of  the  laws
          of  2005,  providing  for  the  administration  of  certain  funds and
          accounts related to the 2005-2006 budget, in relation to  issuance  of
          bonds  by  the  urban  development  corporation; to amend the New York
          state urban  development  corporation  act,  in  relation  to  funding
          project  costs  for  the Binghamton university school of pharmacy, New
          York power  electronic  manufacturing  consortium  and  the  nonprofit
          infrastructure capital investment program; to amend the public author-
          ities  law,  in  relation  to  the  state environmental infrastructure
          projects; to amend the New York state  urban  development  corporation
          act,  in  relation to authorizing the urban development corporation to
          issue bonds to fund project costs for the implementation of a  NY-CUNY
          challenge  grant  program;  to  amend  chapter 81 of the laws of 2002,
          providing for the administration of certain funds and accounts related
          to the 2002-2003 budget,  in  relation  to  increasing  the  aggregate
          amount  of  bonds to be issued by the New York state urban development
          corporation; to amend the  public  authorities  law,  in  relation  to
          financing  of  peace  bridge  and  transportation capital projects; to
          amend the public  authorities  law,  in  relation  to  dormitories  at
          certain  educational  institutions  other  than  state operated insti-
          tutions and statutory or contract colleges under the  jurisdiction  of
          the state university of New York; to amend the public authorities law,
          in relation to authorization for the issuance of bonds for the capital
          restructuring bond finance program and the health care facility trans-
          formation  program; to amend chapter 389 of the laws of 1997, relating
          to the financing of the correctional facilities improvement  fund  and
          the  youth  facility  improvement fund, in relation to the issuance of
          bonds; to amend the New York state  medical  care  facilities  finance
          agency act, in relation to bonds and mental health facilities improve-
          ment  notes; to amend the New York state urban development corporation
          act, in relation to the aggregate amount of and  issuance  of  certain
          bonds;  and  to  amend chapter 63 of the laws of 2005, relating to the
          composition and responsibilities of the New York state  higher  educa-
          tion  capital  matching  grant  board,  in  relation to increasing the
          amount of authorized matching capital grants; to amend  the  New  York
          state  urban  development corporation act, in relation to the issuance
          of bonds or notes for the purpose of funding project costs  associated
          with  capital  projects;  to  amend  the  public  authorities  law, in
          relation to financing of  the  metropolitan  transportation  authority
          transportation  facilities;  and  providing  for the repeal of certain
          provisions upon expiration thereof (Part I); and to amend  the  public
          health  law,  in  relation  to  establishing  the health care facility
          transformation program in Kings and Oneida counties;  in  relation  to
          establishing  the  essential  health care provider support program; in
          relation to  the  capital  restructuring  financing  program;  and  in
          relation  to  establishing the community health care revolving capital
          fund (Part J)

        S. 4610--A                          3                         A. 6721--A
 
          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  which are necessary to implement the state fiscal plan for the 2015-2016
     3  state fiscal year. Each component is  wholly  contained  within  a  Part
     4  identified  as Parts A through J. The effective date for each particular
     5  provision contained within such Part is set forth in the last section of
     6  such Part. Any provision in any section contained within a Part, includ-
     7  ing the effective date of the Part, which makes a reference to a section
     8  "of this act", when used in connection with that  particular  component,
     9  shall  be  deemed  to mean and refer to the corresponding section of the
    10  Part in which it is found. Section three of  this  act  sets  forth  the
    11  general effective date of this act.
 
    12                                   PART A
 
    13    Section  1.  Section  20 of chapter 41 of the laws of 1985 relating to
    14  providing for the construction of a civic center in  Albany  and  making
    15  appropriations relating to the construction of such facility, is amended
    16  to read as follows:
    17    §  20.  The state comptroller is hereby authorized to receive from the
    18  county, repayment of money disbursed from  this  appropriation  and  any
    19  income  or  increment related thereto due to the investment thereof, and
    20  to deposit the  same  to  the  credit  of  the  capital  projects  fund;
    21  provided,  however  that  any and all moneys received by the state comp-
    22  troller from the county of Albany on or before April 30, 2015, shall  be
    23  deemed  to  be  full repayment of the money disbursed from the appropri-
    24  ation made in section eleven of this act and  any  income  or  increment
    25  related thereto due to the investment thereof.
    26    § 2. This act shall take effect immediately.
 
    27                                   PART B
 
    28    Section  1.  Section 431 of the economic development law is amended by
    29  adding a new subdivision 15 to read as follows:
    30    15. "START-UP NY airport facility" means vacant land or space owned by
    31  the state of New York on the premises of  Stewart  Airport  or  Republic
    32  Airport.
    33    §  2. Subdivision 4 of section 435 of the economic development law, as
    34  amended by section 2 of part BB of chapter 55 of the laws  of  2014,  is
    35  amended to read as follows:
    36    4.  The  START-UP NY approval board, by majority vote, shall designate
    37  correctional facilities described in  subdivision  fourteen  of  section
    38  four  hundred thirty-one of this article, START-UP NY airport facilities
    39  described in subdivision fifteen of section four hundred  thirty-one  of
    40  this  article  and  up  to  twenty strategic state assets as tax-free NY
    41  areas. Each shall be affiliated with a  state  university  campus,  city
    42  university  campus,  community college, or private college or university
    43  and such designation shall require the support of the affiliated campus,
    44  college or university.  Each  strategic  state  asset  and  START-UP  NY
    45  airport  facility,  other than a correctional facility, may not exceed a
    46  maximum of two hundred thousand square feet of  vacant  land  or  vacant
    47  building  space designated as a tax-free NY area. Designation of strate-
    48  gic state assets [and], correctional facilities described in subdivision
    49  fourteen of section four hundred thirty-one of this article, and  START-

        S. 4610--A                          4                         A. 6721--A
 
     1  UP  NY  airport  facilities  described in subdivision fifteen of section
     2  four hundred thirty-one of this article as tax-free NY areas  shall  not
     3  count  against  any  square  footage limitations in section four hundred
     4  thirty-two of this article.
     5    § 3. This act shall take effect immediately.
 
     6                                   PART C
 
     7    Section  1.  Subdivision  4  of  section 3627 of the education law, as
     8  amended by section 7-b of part A of a  chapter  of  the  laws  of  2015,
     9  amending the education law, relating to contracts for excellence, appor-
    10  tionment  of  school  aid,  total foundation aid and the gap elimination
    11  adjustment restoration, the teachers of tomorrow teacher recruitment and
    12  retention program and waivers from certain duties, as proposed in legis-
    13  lative bill numbers  S.2006-B  and  A.3006-B,  is  amended  to  read  as
    14  follows:
    15    4.  Notwithstanding  any  other  provision of law to the contrary, any
    16  expenditures for transportation provided pursuant to this section in the
    17  two thousand thirteen--two thousand fourteen and two thousand  fourteen-
    18  -two  thousand fifteen school year and thereafter and otherwise eligible
    19  for transportation aid pursuant to subdivision seven of section  thirty-
    20  six hundred two of this article shall be considered approved transporta-
    21  tion expenses eligible for transportation aid, provided further that for
    22  the two thousand thirteen--two thousand fourteen [and two thousand four-
    23  teen--two  thousand  fifteen]  school  year such aid shall be limited to
    24  eight million one hundred thousand dollars  and  for  the  two  thousand
    25  fourteen--two  thousand  fifteen[--two thousand sixteen] school year and
    26  thereafter such aid shall be limited to twelve million six hundred thou-
    27  sand dollars. And provided further that such expenditures  eligible  for
    28  aid  under this section shall supplement not supplant local expenditures
    29  for such transportation in the two thousand twelve--two  thousand  thir-
    30  teen school year.
    31    §  2.  This  act  shall  take  effect on the same date and in the same
    32  manner as section 7-b of part A of a chapter of the laws of 2015, amend-
    33  ing the education law, relating to contracts for excellence,  apportion-
    34  ment of school aid, total foundation aid and the gap elimination adjust-
    35  ment  restoration,  the  teachers  of  tomorrow  teacher recruitment and
    36  retention program and waivers from certain duties, as proposed in legis-
    37  lative bill numbers S.2006-B and A.3006-B, takes effect.
 
    38                                   PART D
 
    39    Section 1. Chapter 6 of title 11 of the  administrative  code  of  the
    40  city  of  New  York is amended by adding a new subchapter 3-A to read as
    41  follows:
    42                               SUBCHAPTER 3-A
    43                            CORPORATE TAX OF 2015
    44  Section 11-651 Applicability.
    45          11-652  Definitions.
    46          11-653  Imposition of tax; exemptions.
    47          11-654  Computation of tax.
    48          11-654.1 Net operating loss.
    49          11-654.2 Receipts allocation.
    50          11-654.3 Combined reports.
    51          11-655  Reports.
    52          11-656  Payment and lien of tax.

        S. 4610--A                          5                         A. 6721--A
 
     1          11-657  Declaration of estimated tax.
     2          11-658  Payments on account of estimated tax.
     3          11-659  Collection of taxes.
     4          11-660  Limitations of time.
     5    § 11-651 Applicability.    1. Notwithstanding anything to the contrary
     6  in this chapter, this subchapter shall apply  to  corporations  for  tax
     7  years commencing on or after January first, two thousand fifteen, except
     8  that  it  shall not apply to any corporation that (a) has an election in
     9  effect under subsection (a) of section thirteen hundred sixty-two of the
    10  internal revenue code of  1986,  as  amended,  or  (b)  is  a  qualified
    11  subchapter  S  subsidiary  within  the  meaning  of  paragraph  three of
    12  subsection (b) of section thirteen hundred  sixty-one  of  the  internal
    13  revenue code of 1986, as amended, in any tax year commencing on or after
    14  such  date. Subchapters two and three of this chapter shall not apply to
    15  corporations to which this subchapter applies for tax  years  commencing
    16  on  or  after  January first, two thousand fifteen, except to the extent
    17  provided in this subchapter and to the extent that  the  effect  of  the
    18  application  of  subchapters two and three to tax years commencing prior
    19  to January first,  two  thousand  fifteen  carries  over  to  tax  years
    20  commencing on or after January first, two thousand fifteen.
    21    2.  Each  reference  in  this code to subchapters two or three of this
    22  chapter, or any of the provisions thereof, shall be deemed  a  reference
    23  also  to  this subchapter, and any of the applicable provisions thereof,
    24  where appropriate and with all necessary modifications.
    25    § 11-652 Definitions.  1. (a) The term "corporation" includes  (1)  an
    26  association  within  the meaning of paragraph three of subsection (a) of
    27  section seventy-seven hundred one of the internal revenue code  (includ-
    28  ing,  when  applicable,  a limited liability company), (2) a joint-stock
    29  company or association, (3) a publicly traded partnership treated  as  a
    30  corporation  for  purposes  of  the  internal  revenue  code pursuant to
    31  section  seventy-seven  hundred  four  thereof  and  (4)  any   business
    32  conducted  by  a  trustee  or  trustees wherein interest or ownership is
    33  evidenced by certificate or other written instrument;
    34    (b) (1) Notwithstanding paragraph (a) of this subdivision, an unincor-
    35  porated organization that (i) is described in subparagraph one or  three
    36  of paragraph (a) of this subdivision, (ii) was subject to the provisions
    37  of chapter five of this title for its taxable year beginning in nineteen
    38  hundred ninety-five, and (iii) made a one-time election not to be treat-
    39  ed  as  a  corporation  and,  instead,  to continue to be subject to the
    40  provisions of chapter five of this title for its taxable years beginning
    41  in nineteen hundred ninety-six and  thereafter,  shall  continue  to  be
    42  subject  to the provisions of chapter five of this title for its taxable
    43  years beginning in nineteen hundred ninety-six.
    44    (2) An election under this paragraph shall continue to  be  in  effect
    45  until revoked by the unincorporated organization. An election under this
    46  paragraph shall be revoked by the filing of a return under this subchap-
    47  ter  for the first taxable year with respect to which such revocation is
    48  to be effective. Such return shall be filed on or before  the  due  date
    49  (determined  with  regard  to  extensions) for filing such return. In no
    50  event shall such election or revocation be for a part of a taxable year.
    51    (c) Notwithstanding paragraph (a) of this subdivision,  a  corporation
    52  shall  not  include  an  entity  classified as a partnership for federal
    53  income tax purposes.
    54    2. The term "subsidiary" means a corporation of which over  fifty  per
    55  centum of the number of shares of stock entitling the holders thereof to
    56  vote for the election of directors or trustees is owned by the taxpayer.

        S. 4610--A                          6                         A. 6721--A
 
     1    2-a.  The  term  "taxpayer" means any corporation subject to tax under
     2  this subchapter.
     3    3. Intentionally omitted.
     4    3-a.  The  term  "stock"  means  an  interest in a corporation that is
     5  treated as equity for federal income tax purposes.
     6    4. (a) The term "investment capital" means investments in stocks that:
     7  (i) satisfy the definition of a capital asset under section 1221 of  the
     8  internal revenue code at all times the taxpayer owned such stocks during
     9  the  taxable year; (ii) are held by the taxpayer for investment for more
    10  than one year; (iii) the dispositions of which are, or would be, treated
    11  by the taxpayer as generating long-term capital gains  or  losses  under
    12  the  internal revenue code; (iv) for stocks acquired on or after January
    13  first, two thousand fifteen, at any time after the close of the  day  in
    14  which  they  are acquired, have never been held for sale to customers in
    15  the regular course of business; and (v) before the close of the  day  on
    16  which  the  stock was acquired, are clearly identified in the taxpayer's
    17  records as stock held for investment in  the  same  manner  as  required
    18  under section 1236(a)(1) of the internal revenue code for the stock of a
    19  dealer  in securities to be eligible for capital gain treatment (whether
    20  or not the taxpayer is a dealer of securities subject to section  1236),
    21  provided,  however,  that for stock acquired prior to October first, two
    22  thousand fifteen that was not subject to section 1236(a) of the internal
    23  revenue code, such identification in the taxpayer's records  must  occur
    24  before  October first, two thousand fifteen. Stock in a corporation that
    25  is conducting a unitary business with the taxpayer, stock  in  a  corpo-
    26  ration  that is included in a combined report with the taxpayer pursuant
    27  to the commonly owned group election in  subdivision  three  of  section
    28  11-654.3  of  this  subchapter, and stock used by the taxpayer shall not
    29  constitute investment capital. For purposes of this subdivision, if  the
    30  taxpayer  owns  or  controls,  directly  or indirectly, less than twenty
    31  percent of the voting power of the stock of a corporation,  that  corpo-
    32  ration  will be presumed to be conducting a business that is not unitary
    33  with the business of the taxpayer.
    34    (b) There shall be deducted from investment  capital  any  liabilities
    35  which  are directly or indirectly attributable to investment capital. If
    36  the amount of those liabilities exceeds the amount of  investment  capi-
    37  tal, the amount of investment capital shall be zero.
    38    (c)  Investment  capital  shall  not  include any such investments the
    39  income from which is excluded from entire net  income  pursuant  to  the
    40  provisions  of paragraph (c-1) of subdivision eight of this section, and
    41  that investment capital shall be computed without regard to  liabilities
    42  directly or indirectly attributable to such investments, but only if air
    43  carriers  organized  in  the  United States and operating in the foreign
    44  country or countries in which the taxpayer has its major base  of  oper-
    45  ations  and  in which it is organized, resident or headquartered (if not
    46  in the same country as its major base of operations) are not subject  to
    47  any  tax based on or measured by capital imposed by such foreign country
    48  or countries or any political subdivision  thereof,  or  if  taxed,  are
    49  provided  an exemption, equivalent to that provided for herein, from any
    50  tax based on or measured by capital imposed by such foreign  country  or
    51  countries  and  from  any  such tax imposed by any political subdivision
    52  thereof.
    53    (d) If a taxpayer acquires stock that is a capital asset under section
    54  1221 of the internal revenue code during the taxable year and owns  that
    55  stock  on  the last day of the taxable year, it will be presumed, solely
    56  for the purposes of determining whether that stock should be  classified

        S. 4610--A                          7                         A. 6721--A
 
     1  as  investment capital after it is acquired, that the taxpayer held that
     2  stock for more than one year. However, if the taxpayer does not in  fact
     3  own that stock at the time it actually files its original report for the
     4  taxable year in which it acquired the stock, then the presumption in the
     5  preceding  sentence shall not apply and the actual period of time during
     6  which the taxpayer owned the stock shall be used  to  determine  whether
     7  the  stock  should  be  classified  as  investment  capital  after it is
     8  acquired. If the  taxpayer  relies  on  the  presumption  in  the  first
     9  sentence  of this paragraph but does not own the stock for more than one
    10  year, the taxpayer must increase its total business capital in the imme-
    11  diately succeeding taxable year by the  amount  included  in  investment
    12  capital  for  that  stock,  net  of any liabilities attributable to that
    13  stock computed as provided in paragraph (b) of this subdivision and must
    14  increase its business income in the immediately succeeding taxable  year
    15  by the amount of income and net gains (but not less than zero) from that
    16  stock  included  in  investment  income,  less  any  interest deductions
    17  directly or indirectly attributable to that stock, as provided in subdi-
    18  vision five of this section.
    19    (e) When income or gain from  a  debt  obligation  or  other  security
    20  cannot be allocated to the city using the business allocation percentage
    21  as  a  result  of  the United States constitutional principles, the debt
    22  obligation or other security will be included in investment capital.
    23    5.  (a)(i) The term "investment income" means income, including  capi-
    24  tal  gains  in excess of capital losses, from investment capital, to the
    25  extent included in computing entire net income, less, in the  discretion
    26  of  the  commissioner  of  finance, any interest deductions allowable in
    27  computing entire net income which are directly or  indirectly  attribut-
    28  able to investment capital or investment income, provided, however, that
    29  in no case shall investment income exceed entire net income.
    30    (ii)  If  the  amount of interest deductions subtracted under subpara-
    31  graph (i) of this paragraph exceeds investment  income,  the  excess  of
    32  such  amount  over  investment  income  must be added back to entire net
    33  income.
    34    (iii) If the taxpayer's investment income determined without regard to
    35  the interest deductions subtracted under subparagraph (i) of this  para-
    36  graph  comprises  more  than  eight percent of the taxpayer's entire net
    37  income, investment income determined without  regard  to  such  interest
    38  deductions  cannot  exceed  eight  percent  of the taxpayer's entire net
    39  income.
    40    (b) In lieu of subtracting from investment income the amount of  those
    41  interest  deductions,  the  taxpayer  may  make  a revocable election to
    42  reduce its total investment income, determined after applying the  limi-
    43  tation  in  subparagraph  (iii) of paragraph (a) of this subdivision, by
    44  forty percent. If the taxpayer makes this election,  the  taxpayer  must
    45  also make the elections provided for in paragraphs (b) and (c) of subdi-
    46  vision five-a of this section. If the taxpayer subsequently revokes this
    47  election,  the  taxpayer must revoke the elections provided for in para-
    48  graphs (b) and (c) of subdivision five-a of  this  section.  A  taxpayer
    49  that  does  not  make this election because it has no investment capital
    50  will not be precluded from making those other elections.
    51    (c) Investment income shall not include any amount  treated  as  divi-
    52  dends pursuant to section seventy-eight of the internal revenue code.
    53    5-a.  (a)  The  term "other exempt income" means the sum of exempt CFC
    54  income and exempt unitary corporation dividends.
    55    (b) "Exempt CFC income" means the income required to  be  included  in
    56  the  taxpayer's  federal  gross  income  pursuant  to  subsection (a) of

        S. 4610--A                          8                         A. 6721--A
 
     1  section nine hundred fifty-one of the internal  revenue  code,  received
     2  from  a  corporation  that  is  conducting  a  unitary business with the
     3  taxpayer but is not included in a combined  report  with  the  taxpayer,
     4  less,  in  the  discretion  of the commissioner of finance, any interest
     5  deductions directly or indirectly attributable to that income.  In  lieu
     6  of  subtracting  from its exempt CFC income the amount of those interest
     7  deductions, the taxpayer may make a revocable  election  to  reduce  its
     8  total  exempt  CFC  income  by forty percent. If the taxpayer makes this
     9  election, the taxpayer must also make  the  elections  provided  for  in
    10  paragraph  (b)  of subdivision five of this section and paragraph (c) of
    11  this subdivision. If the taxpayer subsequently  revokes  this  election,
    12  the  taxpayer must revoke the elections provided for in paragraph (b) of
    13  subdivision five of this section and paragraph (c) of this  subdivision.
    14  A  taxpayer  which  does not make this election because it has no exempt
    15  CFC income will not be precluded from making those other elections.
    16    (c) "Exempt unitary corporate dividends" means those dividends from  a
    17  corporation  that is conducting a unitary business with the taxpayer but
    18  is not included in a combined report with the  taxpayer,  less,  in  the
    19  discretion  of  the  commissioner  of  finance,  any interest deductions
    20  directly or indirectly attributable to such income. Other than  dividend
    21  income  received from corporations that are taxable under chapter eleven
    22  of this title (except for vendors of  utility  services  that  are  also
    23  taxable  under this subchapter) or would be taxable under chapter eleven
    24  of this title (except for vendors of  utility  services  that  are  also
    25  taxable  under  this subchapter) if subject to tax and corporations that
    26  would have been taxable as insurance corporations under former part  IV,
    27  title R, chapter forty-six of the administrative code of the city of New
    28  York  as  in effect on June thirtieth, nineteen hundred seventy-four, in
    29  lieu of subtracting from this dividend income those interest deductions,
    30  the taxpayer may make a revocable election to reduce the total amount of
    31  this dividend income by  forty  percent.  If  the  taxpayer  makes  this
    32  election,  the  taxpayer  must  also  make the elections provided for in
    33  paragraph (b) of subdivision five of this section and paragraph  (b)  of
    34  this  subdivision.   If the taxpayer subsequently revokes this election,
    35  the taxpayer must revoke the elections provided for in paragraph (b)  of
    36  subdivision  five of this section and paragraph (b) of this subdivision.
    37  A taxpayer that does not make this election because it has not  received
    38  any  exempt  unitary  corporation  dividends or is precluded from making
    39  this election for dividends received from corporations that are  taxable
    40  under  chapter  eleven  of  this  title  (except  for vendors of utility
    41  services that are also taxable under this subchapter) or would be  taxa-
    42  ble  under  chapter  eleven  of this title if subject to tax (except for
    43  vendors of utility services that are also taxable under this subchapter)
    44  shall not be precluded from making those other elections.
    45    (d) If the taxpayer attributes interest  deductions  to  other  exempt
    46  income  and  the amount deducted exceeds other exempt income, the excess
    47  of the interest deductions over other exempt income must be  added  back
    48  to entire net income. In no case shall other exempt income exceed entire
    49  net income.
    50    (e)  Other exempt income shall not include any amount treated as divi-
    51  dends pursuant to section seventy-eight of the internal revenue code.
    52    6. (a) The term  "business  capital"  means  all  assets,  other  than
    53  investment  capital  and  stock issued by the taxpayer, less liabilities
    54  not deducted from investment capital; provided, however, business  capi-
    55  tal shall include only those assets the income, loss or expense of which
    56  are  properly  reflected  (or  would have been properly reflected if not

        S. 4610--A                          9                         A. 6721--A
 
     1  fully depreciated or expensed or depreciated or expensed  to  a  nominal
     2  amount) in the computation of entire net income for the taxable year.
     3    (b)  Provided, further, "business capital" shall not include assets to
     4  the extent employed for  the  purpose  of  generating  income  which  is
     5  excluded  from entire net income pursuant to the provisions of paragraph
     6  (c-1) of subdivision eight of this section and shall be computed without
     7  regard to  liabilities  directly  or  indirectly  attributable  to  such
     8  assets,  but  only  if  air  carriers organized in the United States and
     9  operating in the foreign country or countries in which the taxpayer  has
    10  its  major  base of operations and in which it is organized, resident or
    11  headquartered (if not in the same country as its  major  base  of  oper-
    12  ations)  are  not  subject  to  any  tax based on or measured by capital
    13  imposed by such foreign country or countries or any  political  subdivi-
    14  sion thereof, or if taxed, are provided an exemption, equivalent to that
    15  provided  for  herein,  from  any  tax  based  on or measured by capital
    16  imposed by such foreign country or  countries  and  from  any  such  tax
    17  imposed by any political subdivision thereof.
    18    7. The term "business income" means entire net income minus investment
    19  income  and other exempt income. In no event shall the sum of investment
    20  income and other exempt income exceed entire net income. If the taxpayer
    21  makes the election provided for in subparagraph one of paragraph (a)  of
    22  subdivision five of section 11-654.2 of this subchapter, then all income
    23  from qualified financial instruments shall constitute business income.
    24    8. The term "entire net income" means total net income from all sourc-
    25  es,  which  shall  be  presumably the same as the entire taxable income,
    26  which, except as hereafter provided in this subdivision,
    27    (i) the taxpayer is required to report to the United  States  treasury
    28  department, or
    29    (ii)  the  taxpayer,  in the case of a corporation that is exempt from
    30  federal income tax (other than the tax  on  unrelated  business  taxable
    31  income imposed under section five hundred eleven of the internal revenue
    32  code) but which is subject to tax under this subchapter, would have been
    33  required to report to the United States treasury department but for such
    34  exemption, or
    35    (iii)  in the case of an alien corporation that under any provision of
    36  the internal revenue code is not treated as a "domestic corporation"  as
    37  defined  in  section  seven  thousand seven hundred one of such code, is
    38  effectively connected with the conduct of a trade or business within the
    39  United States as determined under section eight  hundred  eighty-two  of
    40  the internal revenue code.
    41    (a) Entire net income shall not include:
    42    (1) Intentionally omitted;
    43    (2) Intentionally omitted;
    44    (2-a)  any  amounts  treated as dividends pursuant to section seventy-
    45  eight of the internal revenue code;
    46    (3) bona fide gifts;
    47    (4) income and deductions with respect to amounts received from school
    48  districts and from corporations and associations, organized and operated
    49  exclusively for religious, charitable or educational purposes,  no  part
    50  of the net earnings of which inures to the benefit of any private share-
    51  holder or individual, for the operation of school buses;
    52    (5)  any  refund  or  credit  of  a tax imposed under this chapter, or
    53  imposed by article nine, nine-A, twenty-three, or former  article  thir-
    54  ty-two  of  the  tax  law,  for  which tax no exclusion or deduction was
    55  allowed in determining the  taxpayer's  entire  net  income  under  this

        S. 4610--A                         10                         A. 6721--A
 
     1  subchapter,  subchapter two, or subchapter three of this chapter for any
     2  prior year;
     3    (6) Intentionally omitted;
     4    (7)  that portion of wages and salaries paid or incurred for the taxa-
     5  ble year for which a deduction is not allowed pursuant to the provisions
     6  of section two hundred eighty C of the internal revenue code;
     7    (8) except with respect to property which is a qualified mass  commut-
     8  ing  vehicle  described  in  subparagraph  (D)  of  paragraph  eight  of
     9  subsection (f) of section one hundred sixty-eight of the internal reven-
    10  ue code (relating to qualified mass commuting vehicles) and property  of
    11  a taxpayer principally engaged in the conduct of an aviation, steamboat,
    12  ferry  or  navigation business, or two or more of such businesses, which
    13  is placed in service before taxable years beginning in nineteen  hundred
    14  eighty-nine,  any  amount  which  is  included in the taxpayer's federal
    15  taxable income solely as a result of an election made  pursuant  to  the
    16  provisions  of  such  paragraph eight as it was in effect for agreements
    17  entered into prior to January first, nineteen hundred eighty-four;
    18    (9) except with respect to property which is a qualified mass  commut-
    19  ing  vehicle  described  in  subparagraph  (D)  of  paragraph  eight  of
    20  subsection (f) of section one hundred sixty-eight of the internal reven-
    21  ue code (relating to qualified mass commuting vehicles) and property  of
    22  a taxpayer principally engaged in the conduct of an aviation, steamboat,
    23  ferry  or  navigation business, or two or more of such businesses, which
    24  is placed in service before taxable years beginning in nineteen  hundred
    25  eighty-nine,  any  amount  which  the  taxpayer could have excluded from
    26  federal taxable income had it not made the election provided for in such
    27  paragraph eight as it was in effect for agreements entered into prior to
    28  January first, nineteen hundred eighty-four;
    29    (10) the amount deductible pursuant to paragraph (j) of this  subdivi-
    30  sion;
    31    (11)  upon  the disposition of property to which paragraph (j) of this
    32  subdivision applies, the amount, if any, by which the aggregate  of  the
    33  amounts described in subparagraph eleven of paragraph (b) of this subdi-
    34  vision  attributable  to  such  property  exceeds  the  aggregate of the
    35  amounts described in paragraph (j) of this subdivision  attributable  to
    36  such property;
    37    (12)  the amount deductible pursuant to paragraph (k) of this subdivi-
    38  sion;
    39    (13) the amount deductible pursuant to paragraph (o) of this  subdivi-
    40  sion;
    41    (14) the amount computed pursuant to paragraph (q), (r) or (s) of this
    42  subdivision,  but  only  the  amount  determined pursuant to one of such
    43  paragraphs; and
    44    (15) the amount computed pursuant to paragraph (t)  of  this  subdivi-
    45  sion.
    46    (a-1)  Notwithstanding  any other provision of this subchapter, in the
    47  case of a taxpayer that is a partner in a partnership subject to the tax
    48  imposed by chapter eleven of this title as  a  utility,  as  defined  in
    49  subdivision  six  of  section 11-1101 of such chapter, entire net income
    50  shall not include the taxpayer's distributive  or  pro  rata  share  for
    51  federal  income  tax  purposes  of  any  item  of  income, gain, loss or
    52  deduction of such partnership, or any item  of  income,  gain,  loss  or
    53  deduction of such partnership that the taxpayer is required to take into
    54  account separately for federal income tax purposes.
    55    (b)  Entire  net  income  shall  be  determined without the exclusion,
    56  deduction or credit of:

        S. 4610--A                         11                         A. 6721--A
 
     1    (1) in the case of an alien corporation that under  any  provision  of
     2  the  internal revenue code is not treated as a "domestic corporation" as
     3  defined in section seven thousand seven hundred one of  such  code,  (i)
     4  any  part of any income from dividends or interest on any kind of stock,
     5  securities or indebtedness, but only if such income is treated as effec-
     6  tively  connected  with the conduct of a trade or business in the United
     7  States pursuant to section eight  hundred  sixty-four  of  the  internal
     8  revenue  code,  (ii) any income exempt from federal taxable income under
     9  any treaty obligation of the United States,  but  only  if  such  income
    10  would  be  treated  as  effectively  connected  in  the  absence of such
    11  exemption provided that such treaty obligation  does  not  preclude  the
    12  taxation  of  such income by a state, or (iii) any income which would be
    13  treated as effectively connected if such income were not  excluded  from
    14  gross  income pursuant to subsection (a) of section one hundred three of
    15  the internal revenue code;
    16    (2) any part of any income from dividends or interest of any  kind  of
    17  stock, securities, or indebtedness;
    18    (3)  taxes  on or measured by profits or income paid or accrued to the
    19  United States, any of its  possessions,  territories  or  commonwealths,
    20  including taxes in lieu of any of the foregoing taxes otherwise general-
    21  ly  imposed  by  any possession, territory or commonwealth of the United
    22  States, or taxes paid or  accrued  to  the  state  under  article  nine,
    23  nine-A, thirteen-A or thirty-two of the tax law as in effect on December
    24  thirty-first, two thousand fourteen;
    25    (3-a)  taxes  on  or  measured  by profits or income, or which include
    26  profits or income as a measure, paid or accrued to any  other  state  of
    27  the  United  States,  or  any  political  subdivision thereof, or to the
    28  District of Columbia, including taxes expressly in lieu of  any  of  the
    29  foregoing  taxes  otherwise  generally imposed by any other state of the
    30  United States, or any political subdivision thereof, or the District  of
    31  Columbia;
    32    (4) taxes imposed under this chapter;
    33    (4-a) Intentionally omitted;
    34    (4-b) the amount allowed as an exclusion or a deduction imposed by the
    35  tax  law  in  determining  the  entire  taxable  income for a relocation
    36  described in subdivision thirteen of section 11-654 of  this  subchapter
    37  which  the  taxpayer is required to report to the United States treasury
    38  department but only such portion of such exclusion or deduction which is
    39  not in excess of the amount of the credit allowed pursuant  to  subdivi-
    40  sion thirteen of section 11-654 of this subchapter;
    41    (4-c) the amount allowed as an exclusion or a deduction imposed by the
    42  tax  law  for  a relocation described in subdivision fourteen of section
    43  11-654 of this subchapter in determining the entire taxable income which
    44  the taxpayer is required to report to the United States treasury depart-
    45  ment but only such portion of such exclusion or deduction which  is  not
    46  in  excess  of  the amount of the credit allowed pursuant to subdivision
    47  fourteen of section 11-654 of this subchapter;
    48    (4-d) Intentionally omitted;
    49    (4-e) Intentionally omitted;
    50    (5) Intentionally omitted;
    51    (6) any amount allowed as a  deduction  for  the  taxable  year  under
    52  section  one hundred seventy-two of the internal revenue code, including
    53  carryovers of deductions from prior taxable years;
    54    (7) any amount by reason of the granting, issuing  or  assuming  of  a
    55  restricted  stock  option,  as  defined  in the internal revenue code of
    56  nineteen hundred fifty-four, or by reason of the transfer of  the  share

        S. 4610--A                         12                         A. 6721--A
 
     1  of  stock upon the exercise of the option, unless such share is disposed
     2  of by the grantee of the option within two years from the  date  of  the
     3  granting  of  the option or within six months after the transfer of such
     4  share to the grantee;
     5    (8) Intentionally omitted;
     6    (9)  except with respect to property which is a qualified mass commut-
     7  ing  vehicle  described  in  subparagraph  (D)  of  paragraph  eight  of
     8  subsection (f) of section one hundred sixty-eight of the internal reven-
     9  ue  code (relating to qualified mass commuting vehicles) and property of
    10  a taxpayer principally engaged in the conduct of an aviation, steamboat,
    11  ferry or navigation business, or two or more of such  businesses,  which
    12  is  placed in service before taxable years beginning in nineteen hundred
    13  eighty-nine, any amount which the taxpayer claimed  as  a  deduction  in
    14  computing  its  federal taxable income solely as a result of an election
    15  made pursuant to the provisions of such paragraph eight  as  it  was  in
    16  effect  for  agreements  entered  into  prior to January first, nineteen
    17  hundred eighty-four;
    18    (10) except with respect to property which is a qualified mass commut-
    19  ing  vehicle  described  in  subparagraph  (D)  of  paragraph  eight  of
    20  subsection (f) of section one hundred sixty-eight of the internal reven-
    21  ue  code (relating to qualified mass commuting vehicles) and property of
    22  a taxpayer principally engaged in the conduct of an aviation, steamboat,
    23  ferry or navigation business, or two or more of such  businesses,  which
    24  is  placed in service before taxable years beginning in nineteen hundred
    25  eighty-nine, any amount which the taxpayer would have been  required  to
    26  include in the computation of its federal taxable income had it not made
    27  the  election  permitted  pursuant  to such paragraph eight as it was in
    28  effect for agreements entered into  prior  to  January  first,  nineteen
    29  hundred eighty-four;
    30    (11) in the case of property placed in service in taxable years begin-
    31  ning  before  nineteen  hundred ninety-four, for taxable years beginning
    32  after December thirty-first, nineteen hundred  eighty-one,  except  with
    33  respect  to  property  subject  to the provisions of section two hundred
    34  eighty  F  of  the  internal  revenue  code,  property  subject  to  the
    35  provisions  of  section  one hundred sixty-eight of the internal revenue
    36  code which is placed in service in this state in taxable years beginning
    37  after December thirty-first, nineteen hundred eighty-four  and  property
    38  of  a taxpayer principally engaged in the conduct of an aviation, steam-
    39  boat, ferry or navigation business, or two or more of  such  businesses,
    40  which  is  placed  in service before taxable years beginning in nineteen
    41  hundred eighty-nine, the amount  allowable  as  a  deduction  determined
    42  under section one hundred sixty-eight of the internal revenue code;
    43    (12)  upon  the disposition of property to which paragraph (j) of this
    44  subdivision applies, the amount, if any, by which the aggregate  of  the
    45  amounts  described  in  such paragraph (j) attributable to such property
    46  exceeds the aggregate of the amounts described in subparagraph eleven of
    47  this paragraph attributable to such property;
    48    (13) Intentionally omitted;
    49    (14) Intentionally omitted;
    50    (15) Intentionally omitted;
    51    (16) in the case of qualified property described in paragraph  two  of
    52  subsection (k) of section one hundred sixty-eight of the internal reven-
    53  ue  code,  other  than  qualified  resurgence zone property described in
    54  paragraph (m) of this subdivision, and other  than  qualified  New  York
    55  Liberty  Zone  property  described in paragraph two of subsection (b) of
    56  section fourteen hundred L of the internal revenue code (without  regard

        S. 4610--A                         13                         A. 6721--A
 
     1  to  clause (i) of subparagraph (C) of such paragraph), the amount allow-
     2  able as a deduction under section one hundred sixty-seven of the  inter-
     3  nal revenue code;
     4    (17)  in  the  case  of  a  taxpayer that is not an eligible farmer as
     5  defined in subsection (n) of section six hundred six of the tax law, the
     6  amount allowable as a deduction under sections one hundred seventy-nine,
     7  one hundred sixty-seven and one  hundred  sixty-eight  of  the  internal
     8  revenue  code  with  respect  to  a  sport utility vehicle that is not a
     9  passenger automobile as defined in paragraph five of subsection  (d)  of
    10  section two hundred eighty F of the internal revenue code;
    11    (18)  the  amount  of  any  deduction  allowed pursuant to section one
    12  hundred ninety-nine of the internal revenue code;
    13    (19) the amount of any federal deduction for taxes imposed under arti-
    14  cle twenty-three of the tax law.
    15    (c) Intentionally omitted.
    16    (c-1)(1) Notwithstanding any other provision of  this  subchapter,  in
    17  the  case of a taxpayer which is a foreign air carrier holding a foreign
    18  air carrier permit issued by the United States department of transporta-
    19  tion pursuant to section four hundred two of the federal aviation act of
    20  nineteen hundred fifty-eight, as amended, and which is  qualified  under
    21  subparagraph two of this paragraph, entire net income shall not include,
    22  and  shall  be  computed  without  the deduction of, amounts directly or
    23  indirectly attributable to, (i) any income  derived  from  the  interna-
    24  tional  operation  of  aircraft  as  described  in  and  subject  to the
    25  provisions of section eight hundred eighty-three of the internal revenue
    26  code, (ii) income without the United States which is  derived  from  the
    27  operation  of aircraft, and (iii) income without the United States which
    28  is of a type described in  subdivision  (a)  of  section  eight  hundred
    29  eighty-one  of  the internal revenue code except that it is derived from
    30  sources without the United States.   Entire  net  income  shall  include
    31  income  described in clauses (i), (ii) and (iii) of this subparagraph in
    32  the case of taxpayers not described in the previous sentence;
    33    (2) A taxpayer is qualified under this subparagraph  if  air  carriers
    34  organized  in  the United States and operating in the foreign country or
    35  countries in which the taxpayer has its major base of operations and  in
    36  which  it  is  organized,  resident or headquartered (if not in the same
    37  country as its major base of operations) are not subject to  any  income
    38  tax  or  other tax based on or measured by income or receipts imposed by
    39  such foreign country or countries or any political subdivision  thereof,
    40  or  if  so  subject to such tax, are provided an exemption from such tax
    41  equivalent to that provided for herein.
    42    (d) The commissioner of finance may, whenever necessary in order prop-
    43  erly to reflect the entire net income of  any  taxpayer,  determine  the
    44  year  or  period  in  which  any  item  of  income or deduction shall be
    45  included, without regard to the method of  accounting  employed  by  the
    46  taxpayer.
    47    (e)  The  entire net income of any bridge commission created by act of
    48  congress to construct a bridge across an  international  boundary  means
    49  its gross income less the expense of maintaining and operating its prop-
    50  erties,  the  annual  interest upon its bonds and other obligations, and
    51  the annual charge for the retirement of such  bonds  or  obligations  at
    52  maturity.
    53    (f) Intentionally omitted.
    54    (g)  At the election of the taxpayer, a deduction shall be allowed for
    55  expenditures  paid  or  incurred  during  the  taxable  year   for   the

        S. 4610--A                         14                         A. 6721--A
 
     1  construction,  reconstruction,  erection  or  improvement  of industrial
     2  waste treatment facilities and air pollution control facilities.
     3    (1)(i)  The  term  "industrial  waste treatment facilities" shall mean
     4  facilities for the treatment, neutralization or stabilization of  indus-
     5  trial  waste  (as  the  term  "industrial  waste"  is defined in section
     6  17-0105 of the environmental conservation law) from a point  immediately
     7  preceding  the  point of such treatment, neutralization or stabilization
     8  to the point of disposal, including the necessary pumping and  transmit-
     9  ting facilities, but excluding such facilities installed for the primary
    10  purpose  of  salvaging  materials  which are usable in the manufacturing
    11  process or are marketable.
    12    (ii) The term "air pollution control facilities" shall mean facilities
    13  which remove, reduce, or render less noxious  air  contaminants  emitted
    14  from  an  air  contamination  source (as the terms "air contaminant" and
    15  "air contamination source" are defined in section 19-0107 of  the  envi-
    16  ronmental conservation law) from a point immediately preceding the point
    17  of  such  removal,  reduction  or rendering to the point of discharge of
    18  air, meeting emission standards as  established  by  the  air  pollution
    19  control  board,  but excluding such facilities installed for the primary
    20  purpose of salvaging materials which are  usable  in  the  manufacturing
    21  process  or are marketable and excluding those facilities which rely for
    22  their efficacy on dilution, dispersion or assimilation  of  air  contam-
    23  inants in the ambient air after emission.
    24    (2)  However, such deduction shall be allowed only (i) with respect to
    25  tangible property which is depreciable, pursuant to section one  hundred
    26  sixty-seven of the internal revenue code, having a situs in the city and
    27  used  in  the  taxpayer's  trade  or  business, the construction, recon-
    28  struction, erection or improvement of which, in the case  of  industrial
    29  waste  treatment  facilities,  is  initiated  on or after January first,
    30  nineteen hundred sixty-six, and only for expenditures paid  or  incurred
    31  prior  to  January first, nineteen hundred seventy-two, or which, in the
    32  case of air pollution control facilities, is initiated on or after Janu-
    33  ary first, nineteen hundred sixty-six, and
    34    (ii) on condition that such facilities  have  been  certified  by  the
    35  state  commissioner  of  environmental conservation or the state commis-
    36  sioner's designated representative, in the same manner as  provided  for
    37  in  section 17-0707 or 19-0309 of the environmental conservation law, as
    38  applicable, as complying with applicable provisions of the environmental
    39  conservation law, the state sanitary code and  regulations,  permits  or
    40  orders issued pursuant thereto, and
    41    (iii) on condition that entire net income for the taxable year and all
    42  succeeding  taxable  years  be  computed without any deductions for such
    43  expenditures or for depreciation of the same  property  other  than  the
    44  deductions allowed by this paragraph except to the extent that the basis
    45  of  the property may be attributable to factors other than such expendi-
    46  tures, or in case a deduction is allowable pursuant  to  this  paragraph
    47  for  only  a  part of such expenditures, on condition that any deduction
    48  allowed for federal income tax purposes for  such  expenditures  or  for
    49  depreciation  of the same property be proportionately reduced in comput-
    50  ing entire net income for the taxable year and  all  succeeding  taxable
    51  years, and
    52    (iv)  where  the election provided for in paragraph (d) of subdivision
    53  three of section 11-604 of this chapter or the election provided for  in
    54  subdivision (k) of section 11-641 of this chapter has not been exercised
    55  in respect to the same property.

        S. 4610--A                         15                         A. 6721--A
 
     1    (3)(i)  If  expenditures  in  respect to an industrial waste treatment
     2  facility or an air pollution control  facility  have  been  deducted  as
     3  provided herein and if within ten years from the end of the taxable year
     4  in which such deduction was allowed such property or any part thereof is
     5  used  for the primary purpose of salvaging materials which are usable in
     6  the manufacturing process or are marketable, the taxpayer  shall  report
     7  such change of use in its report for the first taxable year during which
     8  it occurs, and the commissioner of finance may recompute the tax for the
     9  year  or years for which such deduction was allowed and any carryback or
    10  carryover year, and may assess any additional tax  resulting  from  such
    11  recomputation  within  the  time  fixed  by paragraph (h) of subdivision
    12  three of section 11-674 of this chapter.
    13    (ii) If a deduction is allowed as  herein  provided  for  expenditures
    14  paid  or  incurred  during  any taxable year on the basis of a temporary
    15  certificate of compliance issued pursuant to the environmental conserva-
    16  tion law and if the taxpayer fails to obtain a permanent certificate  of
    17  compliance  upon completion of the facilities with respect to which such
    18  temporary certificate was issued, the taxpayer shall report such failure
    19  in its report for the taxable year  during  which  such  facilities  are
    20  completed, and the commissioner of finance may recompute the tax for the
    21  year  or years for which such deduction was allowed and any carryback or
    22  carryover year, and may assess any additional tax  resulting  from  such
    23  recomputation  within  the  time  fixed  by paragraph (h) of subdivision
    24  three of section 11-674 of this chapter.
    25    (4) In any taxable year when property is sold  or  otherwise  disposed
    26  of,  with respect to which a deduction has been allowed pursuant to this
    27  paragraph, such deduction shall be  disregarded  in  computing  gain  or
    28  loss,  and  the  gain  or  loss on the sale or other disposition of such
    29  property shall be the gain or loss  entering  into  the  computation  of
    30  entire  taxable  income  which the taxpayer is required to report to the
    31  United States treasury for such taxable year;
    32    (h) With respect to gain derived from the sale or other disposition of
    33  any property acquired prior to January first,  nineteen  hundred  sixty-
    34  six;  which had a federal adjusted basis on such date (or on the date of
    35  its sale or other disposition prior to January first,  nineteen  hundred
    36  sixty-six)  lower  than its fair market value on January first, nineteen
    37  hundred sixty-six or the date of its sale  or  other  disposition  prior
    38  thereto,  except  property  described  in  subsections  one  and four of
    39  section twelve hundred twenty-one of the internal  revenue  code,  there
    40  shall be deducted from entire net income, the difference between (1) the
    41  amount  of  the taxpayer's federal taxable income, and (2) the amount of
    42  the taxpayer's federal  taxable  income  (if  smaller  than  the  amount
    43  described  in  subparagraph  one  of  this paragraph) computed as if the
    44  federal adjusted basis of each such  property  (on  the  sale  or  other
    45  disposition  of which gain was derived) on the date of the sale or other
    46  disposition had been equal to either (i) its fair market value on  Janu-
    47  ary  first,  nineteen hundred sixty-six or the date of its sale or other
    48  disposition prior to January first, nineteen hundred sixty-six, plus  or
    49  minus  all  adjustments  to basis made with respect to such property for
    50  federal income tax purposes for periods  on  and  after  January  first,
    51  nineteen  hundred sixty-six or (ii) the amount realized from its sale or
    52  disposition, whichever is  lower;  provided,  however,  that  the  total
    53  modification  provided  by this paragraph shall not exceed the amount of
    54  the taxpayer's net gain from the sale or other disposition of  all  such
    55  property.

        S. 4610--A                         16                         A. 6721--A
 
     1    (i)  If  the period covered by a report under this subchapter is other
     2  than the period covered by the report  of  the  United  States  treasury
     3  department,  entire  net  income  shall be determined by multiplying the
     4  federal taxable income (as adjusted pursuant to the provisions  of  this
     5  subchapter)  by  the  number  of  calendar months or major parts thereof
     6  covered by the report under this subchapter and dividing by  the  number
     7  of  calendar months or major parts thereof covered by the report to such
     8  department. If it shall appear that such method  of  determining  entire
     9  net  income  does  not properly reflect the taxpayer's income during the
    10  period covered by the report under this subchapter, the commissioner  of
    11  finance  shall  be authorized in his or her discretion to determine such
    12  entire net income solely on the basis of the  taxpayer's  income  during
    13  the period covered by its report under this subchapter.
    14    (j)  In the case of property placed in service in taxable years begin-
    15  ning before nineteen hundred ninety-four, for  taxable  years  beginning
    16  after  December  thirty-first,  nineteen hundred eighty-one, except with
    17  respect to property subject to the provisions  of  section  two  hundred
    18  eighty  F  of  the  internal  revenue  code  and property subject to the
    19  provisions of section one hundred sixty-eight of  the  internal  revenue
    20  code which is placed in service in this state in taxable years beginning
    21  after  December thirty-first, nineteen hundred eighty-four, and provided
    22  a deduction has not been excluded from entire  net  income  pursuant  to
    23  subparagraph nine of paragraph (b) of this subdivision, a taxpayer shall
    24  be  allowed  with respect to property which is subject to the provisions
    25  of section one hundred sixty-eight of  the  internal  revenue  code  the
    26  depreciation  deduction  allowable under section one hundred sixty-seven
    27  of the internal revenue code as such section would have applied to prop-
    28  erty placed  in  service  on  December  thirty-first,  nineteen  hundred
    29  eighty. This paragraph shall not apply to property of a taxpayer princi-
    30  pally engaged in the conduct of an aviation, steamboat, ferry or naviga-
    31  tion  business,  or  two  or more of such businesses, which is placed in
    32  service before taxable years beginning in nineteen hundred eighty-nine.
    33    (k) In the case of qualified property described in  paragraph  two  of
    34  subsection (k) of section one hundred sixty-eight of the internal reven-
    35  ue  code,  other  than  qualified  resurgence zone property described in
    36  paragraph (m) of this subdivision, and other  than  qualified  New  York
    37  Liberty  Zone  property  described in paragraph two of subsection (b) of
    38  section fourteen hundred L of the internal revenue code (without  regard
    39  to  clause  (i) of subparagraph (C) of such paragraph), the depreciation
    40  deduction allowable  under  section  one  hundred  sixty-seven  as  such
    41  section  would have applied to such property had it been acquired by the
    42  taxpayer on September tenth, two thousand one, provided,  however,  that
    43  for  taxable  years  beginning  on  or after January first, two thousand
    44  four, in the case of a passenger motor vehicle or a sport utility  vehi-
    45  cle  subject to the provisions of paragraph (o) of this subdivision, the
    46  limitation under clause (i) of subparagraph  (A)  of  paragraph  one  of
    47  subdivision  (a) of section two hundred eighty F of the internal revenue
    48  code applicable to the amount allowed as a deduction  under  this  para-
    49  graph  shall  be  determined  as  of the date such vehicle was placed in
    50  service and not as of September tenth, two thousand one.
    51    (l) Upon the disposition of property to which paragraph  (k)  of  this
    52  subdivision applies, the amount of any gain or loss includible in entire
    53  net  income  shall  be adjusted to reflect the inclusions and exclusions
    54  from entire net income pursuant to subparagraph twelve of paragraph  (a)
    55  and  subparagraph sixteen of paragraph (b) of this subdivision attribut-
    56  able to such property.

        S. 4610--A                         17                         A. 6721--A
 
     1    (m) For purposes of this paragraph and paragraph (l) of this  subdivi-
     2  sion,  qualified  resurgence zone property shall mean qualified property
     3  described in paragraph two of subsection  (k)  of  section  one  hundred
     4  sixty-eight of the internal revenue code substantially all of the use of
     5  which  is in the resurgence zone, as defined below, and is in the active
     6  conduct of a trade or business by the taxpayer in  such  zone,  and  the
     7  original use of which in the resurgence zone commences with the taxpayer
     8  after September tenth, two thousand one.  The resurgence zone shall mean
     9  the  area of New York county bounded on the south by a line running from
    10  the intersection of the  Hudson  River  with  the  Holland  Tunnel,  and
    11  running  thence  east to Canal Street, then running along the centerline
    12  of Canal Street to the intersection of  the  Bowery  and  Canal  Street,
    13  running  thence in a southeasterly direction diagonally across Manhattan
    14  Bridge Plaza, to the Manhattan Bridge, and thence along  the  centerline
    15  of the Manhattan Bridge to the point where the centerline of the Manhat-
    16  tan Bridge would intersect with the easterly bank of the East River, and
    17  bounded  on  the  north  by  a line running from the intersection of the
    18  Hudson River with the Holland Tunnel and running thence north along West
    19  Avenue to the intersection of Clarkson Street then  running  east  along
    20  the  centerline  of  Clarkson  Street  to the intersection of Washington
    21  Avenue, then running south along the centerline of Washington Avenue  to
    22  the  intersection of West Houston Street, then east along the centerline
    23  of West Houston Street, then at the intersection of the  Avenue  of  the
    24  Americas  continuing east along the centerline of East Houston Street to
    25  the easterly bank of the East River.
    26    (n) Related members expense add back. (1) For purposes of  this  para-
    27  graph: (i) "Related member" means a related person as defined in subpar-
    28  agraph  (c) of paragraph three of subsection (b) of section four hundred
    29  sixty-five of the internal revenue code,  except  that  "fifty  percent"
    30  shall be substituted for "ten percent".
    31    (ii) "Effective rate of tax" means, as to any city, the maximum statu-
    32  tory  rate  of  tax  imposed  by  the  city  on or measured by a related
    33  member's net income multiplied by the  allocation  percentage,  if  any,
    34  applicable  to  the  related member under the laws of said jurisdiction.
    35  For purposes of this definition, the effective rate of  tax  as  to  any
    36  city is zero where the related member's net income tax liability in said
    37  city is reported on a combined or consolidated return including both the
    38  taxpayer  and the related member where the reported transactions between
    39  the taxpayer and the related member are eliminated or offset. Also,  for
    40  purposes  of  this  definition, when computing the effective rate of tax
    41  for a city in which a related  member's  net  income  is  eliminated  or
    42  offset  by  a  credit  or  similar adjustment that is dependent upon the
    43  related member either maintaining or  managing  intangible  property  or
    44  collecting  interest  income in that city, the maximum statutory rate of
    45  tax imposed by said city shall be decreased  to  reflect  the  statutory
    46  rate of tax that applies to the related member as effectively reduced by
    47  such credit or similar adjustment.
    48    (iii) Royalty payments are payments directly connected to the acquisi-
    49  tion,  use, maintenance or management, ownership, sale, exchange, or any
    50  other disposition of  licenses,  trademarks,  copyrights,  trade  names,
    51  trade  dress,  service marks, mask works, trade secrets, patents and any
    52  other similar types of intangible assets as determined  by  the  commis-
    53  sioner  of finance, and include amounts allowable as interest deductions
    54  under section one hundred sixty-three of the internal  revenue  code  to
    55  the extent such amounts are directly or indirectly for, related to or in

        S. 4610--A                         18                         A. 6721--A
 
     1  connection  with the acquisition, use, maintenance or management, owner-
     2  ship, sale, exchange or disposition of such intangible assets.
     3    (iv)  A valid business purpose is one or more business purposes, other
     4  than the avoidance or reduction of taxation, which alone or in  combina-
     5  tion  constitute  the  primary  motivation for some business activity or
     6  transaction, which activity or transaction changes in a meaningful  way,
     7  apart  from  tax  effects,  the  economic  position of the taxpayer. The
     8  economic position of the taxpayer includes an  increase  in  the  market
     9  share  of  the  taxpayer, or the entry by the taxpayer into new business
    10  markets.
    11    (2) Royalty expense add backs. (i) Except where a taxpayer is included
    12  in a combined report pursuant to section  11-654.3  of  this  subchapter
    13  with  the applicable related member, for the purpose of computing entire
    14  net income or other applicable taxable basis, a taxpayer must  add  back
    15  royalty  payments  directly  or indirectly paid, accrued, or incurred in
    16  connection with one or more direct or indirect transactions with one  or
    17  more related members during the taxable year to the extent deductible in
    18  calculating federal taxable income.
    19    (ii)  Exceptions.  (A) The adjustment required in this paragraph shall
    20  not apply to the portion of the royalty payment that the taxpayer estab-
    21  lishes, by clear and convincing evidence of the type  and  in  the  form
    22  specified  by  the  commissioner  of finance, meets all of the following
    23  requirements: (I) the related member was subject to tax in this city  or
    24  another city within the United States or a foreign nation or some combi-
    25  nation  thereof  on  a  tax base that included the royalty payment paid,
    26  accrued or incurred by the taxpayer; (II) the related member during  the
    27  same  taxable year directly or indirectly paid, accrued or incurred such
    28  portion to a person that is not a related member; and (III)  the  trans-
    29  action  giving  rise to the royalty payment between the taxpayer and the
    30  related member was undertaken for a valid business purpose.
    31    (B) The adjustment required in this paragraph shall not apply  if  the
    32  taxpayer  establishes,  by clear and convincing evidence of the type and
    33  in the form specified by the commissioner  of  finance,  that:  (I)  the
    34  related  member  was  subject to tax on or measured by its net income in
    35  this city or another city within the United States, or some  combination
    36  thereof;  (II)  the  tax  base for said tax included the royalty payment
    37  paid, accrued or incurred by  the  taxpayer;  and  (III)  the  aggregate
    38  effective  rate  of tax applied to the related member in those jurisdic-
    39  tions is no less than eighty percent of the statutory rate of  tax  that
    40  applied  to  the  taxpayer  under section 11-604 of this chapter for the
    41  taxable year.
    42    (C) The adjustment required in this paragraph shall not apply  if  the
    43  taxpayer  establishes,  by clear and convincing evidence of the type and
    44  in the form specified by the commissioner  of  finance,  that:  (I)  the
    45  royalty payment was paid, accrued or incurred to a related member organ-
    46  ized  under the laws of a country other than the United States; (II) the
    47  related member's income from the transaction was subject to a comprehen-
    48  sive income tax treaty between such country and the United States; (III)
    49  the related member was subject to tax in a foreign nation on a tax  base
    50  that  included  the  royalty  payment  paid,  accrued or incurred by the
    51  taxpayer; (IV) the related member's  income  from  the  transaction  was
    52  taxed in such country at an effective rate of tax at least equal to that
    53  imposed  by  this city; and (V) the royalty payment was paid, accrued or
    54  incurred pursuant to a transaction that was undertaken for a valid busi-
    55  ness purpose and using terms that reflect an arm's length relationship.

        S. 4610--A                         19                         A. 6721--A
 
     1    (D) The adjustment required in this paragraph shall not apply  if  the
     2  taxpayer  and the commissioner of finance agree in writing to the appli-
     3  cation or use of alternative adjustments or  computations.  The  commis-
     4  sioner  of  finance may, in his or her discretion, agree to the applica-
     5  tion  or  use  of alternative adjustments or computations when he or she
     6  concludes that in the absence  of  such  agreement  the  income  of  the
     7  taxpayer would not be properly reflected.
     8    (o)  In  the  case  of  a  taxpayer  that is not an eligible farmer as
     9  defined in subsection (n) of section six hundred six of the tax law, the
    10  deductions  allowable  under  sections  one  hundred  seventy-nine,  one
    11  hundred  sixty-seven and one hundred sixty-eight of the internal revenue
    12  code with respect to a sport utility vehicle that  is  not  a  passenger
    13  automobile as defined in paragraph five of subsection (d) of section two
    14  hundred  eighty  F  of  the internal revenue code, determined as if such
    15  sport utility vehicle were a passenger automobile  as  defined  in  such
    16  paragraph  five.  For  purposes of subparagraph sixteen of paragraph (b)
    17  and paragraph (k) of this subdivision, the  terms  qualified  resurgence
    18  zone  property and qualified New York Liberty Zone property described in
    19  paragraph two of subsection b of  section  fourteen  hundred  L  of  the
    20  internal  revenue  code shall not include any sport utility vehicle that
    21  is not a passenger automobile as defined in paragraph five of subsection
    22  (d) of section two hundred eighty F of the internal revenue code.
    23    (p) Upon the disposition of property to which paragraph  (o)  of  this
    24  subdivision applies, the amount of any gain or loss includible in entire
    25  net  income  shall  be adjusted to reflect the inclusions and exclusions
    26  from entire net income pursuant to subparagraph  thirteen  of  paragraph
    27  (a)  and  subparagraph  seventeen  of  paragraph (b) of this subdivision
    28  attributable to such property.
    29    (q) Subtraction modification for community banks  and  small  thrifts.
    30  (1) A taxpayer that is a qualified community bank as defined in subpara-
    31  graph  two of this paragraph or a small thrift institution as defined in
    32  subparagraph two-a of this paragraph shall be  allowed  a  deduction  in
    33  computing  entire net income equal to the amount computed under subpara-
    34  graph three of this paragraph.
    35    (2) To be a qualified community bank,  a  taxpayer  must  satisfy  the
    36  following conditions:
    37    (i)  It  is  a bank or trust company organized under or subject to the
    38  provisions of article three of the banking law or a comparable provision
    39  of the laws of another state, or a national banking association.
    40    (ii) The average value during the taxable year of the  assets  of  the
    41  taxpayer,  or,  if  the  taxpayer  is included in a combined report, the
    42  assets of the combined reporting group of  the  taxpayer  under  section
    43  11-654.3 of this subchapter, must not exceed eight billion dollars.
    44    (2-a)  To  be  a small thrift institution, a taxpayer must satisfy the
    45  following conditions:
    46    (i) It is a savings bank, a savings and  loan  association,  or  other
    47  savings  institution  chartered  and supervised as such under federal or
    48  state law.
    49    (ii) The average value during the taxable year of the  assets  of  the
    50  taxpayer,  or,  if  the  taxpayer  is included in a combined report, the
    51  assets of the combined reporting group of  the  taxpayer  under  section
    52  11-654.3 of this subchapter, must not exceed eight billion dollars.
    53    (3)(i) The subtraction modification shall be computed as follows:
    54    (A)  Multiply the taxpayer's net interest income from loans during the
    55  taxable year by a fraction, the numerator of which is the gross interest
    56  income during the taxable year from qualifying loans and the denominator

        S. 4610--A                         20                         A. 6721--A
 
     1  of which is the gross interest income during the taxable year  from  all
     2  loans.
     3    (B)  Multiply the amount determined in subclause (A) of this clause by
     4  fifty percent. This product is the amount of the deduction allowed under
     5  this paragraph.
     6    (ii)(A) Net interest income  from  loans  shall  mean  gross  interest
     7  income from loans less gross interest expense from loans. Gross interest
     8  expense  from  loans is determined by multiplying gross interest expense
     9  by a fraction, the numerator of which is  the  average  total  value  of
    10  loans owned by the thrift institution or community bank during the taxa-
    11  ble year and the denominator of which is the average total assets of the
    12  thrift institution or community bank during the taxable year.
    13    (B)  Measurement  of assets.   For purposes of this clause:  (I) Total
    14  assets are those assets that are properly reflected on a balance  sheet,
    15  computed  in  the same manner as is required by the banking regulator of
    16  the taxpayers included in the combined return.
    17    (II) Assets will only be included if the income or expenses  of  which
    18  are  properly  reflected  (or  would have been properly reflected if not
    19  fully depreciated or expensed, or depreciated or expensed to  a  nominal
    20  amount)  in  the computation of the taxpayer's entire net income for the
    21  taxable year. Assets will not include deferred tax assets and intangible
    22  assets identified as "goodwill".
    23    (III) Tangible real and personal property, such  as  buildings,  land,
    24  machinery, and equipment, shall be valued at cost. Leased assets will be
    25  valued at the annual lease payment multiplied by eight. Intangible prop-
    26  erty,  such  as  loans  and  investments,  shall be valued at book value
    27  exclusive of reserves.
    28    (IV) Average assets are computed using  the  assets  measured  on  the
    29  first  day  of  the taxable year, and on the last day of each subsequent
    30  quarter of the taxable year or month or day during the taxable year.
    31    (iii) A qualifying loan is a loan that meets the conditions  specified
    32  in subclause (A) of this clause and subclause (B) of this clause.
    33    (A)  The  loan  is originated by the qualified community bank or small
    34  thrift institution or purchased by the qualified community bank or small
    35  thrift institution immediately after its origination in connection  with
    36  a commitment to purchase made by the bank or thrift institution prior to
    37  the loan's origination.
    38    (B)  The loan is a small business loan or a residential mortgage loan,
    39  the principal amount of which loan is five million dollars or less,  and
    40  either  the borrower is located in this city as determined under section
    41  11-654.2 of this subchapter and the loan is not secured by real  proper-
    42  ty, or the loan is secured by real property located in the city.
    43    (C)  A  loan that meets the definition of a qualifying loan in a prior
    44  taxable year (including years prior to the effective date of this  para-
    45  graph) remains a qualifying loan in taxable years during and after which
    46  such  loan is acquired by another corporation in the taxpayer's combined
    47  reporting group under section 11-654.3 of this subchapter.
    48    (r) A small thrift institution  or  a  qualified  community  bank,  as
    49  defined  in paragraph (q) of this subdivision, that maintained a captive
    50  REIT on  April  first,  two  thousand  fourteen  shall  utilize  a  REIT
    51  subtraction  equal  to  one  hundred sixty percent of the dividends paid
    52  deductions allowed to that captive REIT for the taxable year for federal
    53  income tax purposes and shall not be allowed to utilize the  subtraction
    54  modification  for  community banks and small thrifts under paragraph (q)
    55  of this subdivision or the subtraction modification for qualified  resi-
    56  dential  loan  portfolios under paragraph (s) of this subdivision in any

        S. 4610--A                         21                         A. 6721--A
 
     1  tax year in which such thrift institution or  community  bank  maintains
     2  that captive REIT.
     3    (s)  Subtraction  modification  for qualified residential loan portfo-
     4  lios. (1)(i) A taxpayer that is either a thrift institution  as  defined
     5  in subparagraph three of this paragraph or a qualified community bank as
     6  defined  in  subparagraph  two  of paragraph (q) of this subdivision and
     7  maintains a qualified residential loan portfolio as defined in  subpara-
     8  graph two of this paragraph shall be allowed as a deduction in computing
     9  entire net income the amount, if any, by which (A) thirty-two percent of
    10  its  entire  net  income  determined  without  regard  to this paragraph
    11  exceeds (B) the amounts deducted by the taxpayer  pursuant  to  sections
    12  one  hundred  sixty-six  and  five  hundred  eighty-five of the internal
    13  revenue code less any amounts included in federal taxable  income  as  a
    14  result of a recovery of a loan.
    15    (ii)(A) If the taxpayer is in a combined report under section 11-654.3
    16  of this subchapter, this deduction will be computed on a combined basis.
    17  In  that instance, the entire net income of the combined reporting group
    18  for purposes of this paragraph shall be multiplied by  a  fraction,  the
    19  numerator  of which is the average total assets of all the thrift insti-
    20  tutions and qualified community banks included in  the  combined  report
    21  and  the  denominator  of  which  is the average total assets of all the
    22  corporations included in the combined report.
    23    (B) Measurement of assets. For purposes of this paragraph:  (I)  Total
    24  assets  are those assets that are properly reflected on a balance sheet,
    25  computed in the same manner as is required by the banking  regulator  of
    26  the taxpayers included in the combined return.
    27    (II)  Assets  will only be included if the income or expenses of which
    28  are properly reflected (or would have been  properly  reflected  if  not
    29  fully  depreciated  or expensed, or depreciated or expensed to a nominal
    30  amount) in the computation of the combined group's entire net income for
    31  the taxable year. Assets will not include deferred tax assets and intan-
    32  gible assets identified as "goodwill".
    33    (III) Tangible real and personal property, such  as  buildings,  land,
    34  machinery,  and equipment shall be valued at cost. Leased assets will be
    35  valued at the annual lease payment multiplied by eight. Intangible prop-
    36  erty, such as loans and investments,  shall  be  valued  at  book  value
    37  exclusive of reserves.
    38    (IV)  Intercorporate  stockholdings  and  bills,  notes  and  accounts
    39  receivable, and other intercorporate  indebtedness  between  the  corpo-
    40  rations included in the combined report shall be eliminated.
    41    (V) Average assets are computed using the assets measured on the first
    42  day  of the taxable year, and on the last day of each subsequent quarter
    43  of the taxable year or month or day during the taxable year.
    44    (2) Qualified residential loan portfolio. (i) A taxpayer  maintains  a
    45  qualified  residential  loan  portfolio if at least sixty percent of the
    46  amount of the total assets at the close  of  the  taxable  year  of  the
    47  thrift  institution  or  qualified community bank consists of the assets
    48  described in subclauses (A) through (L) of this clause, with the  appli-
    49  cation of the rule in the last undesignated subclause of this clause. If
    50  the  taxpayer  is  a  member  of  a combined group, the determination of
    51  whether there is a qualified residential loan portfolio will be made  by
    52  aggregating the assets of the thrift institutions and qualified communi-
    53  ty  banks  that  are  members of the combined group.   Assets: (A) cash,
    54  which includes cash and cash equivalents including  cash  items  in  the
    55  process  of  collection,  deposits  with  other  financial institutions,
    56  including corporate credit unions, balances with federal  reserve  banks

        S. 4610--A                         22                         A. 6721--A
 
     1  and  federal  home  loan  banks,  federal  funds sold, and cash and cash
     2  equivalents on hand. Cash shall not  include  any  balances  serving  as
     3  collateral  for  securities lending transactions; (B) obligations of the
     4  United  States or of a state or political subdivision thereof, and stock
     5  or obligations of a corporation which is an instrumentality or a govern-
     6  ment sponsored enterprise of the United States or of a  state  or  poli-
     7  tical  subdivision thereof; (C) loans secured by a deposit or share of a
     8  member; (D) loans secured by an interest in real property which is  (or,
     9  from the proceeds of the loan, will become) residential real property or
    10  real  property  used  primarily  for church purposes, loans made for the
    11  improvement of residential real property or real property used primarily
    12  for church purposes, provided that for purposes of this subclause, resi-
    13  dential real property shall include single  or  multi-family  dwellings,
    14  facilities  in residential developments dedicated to public use or prop-
    15  erty used on a nonprofit basis for residents, and mobile homes not  used
    16  on  a  transient basis; (E) property acquired through the liquidation of
    17  defaulted loans described in subclause (D) of this clause; (F) any regu-
    18  lar or residual interest in a REMIC, as such term is defined in  section
    19  860D  of the internal revenue code, but only in the proportion which the
    20  assets of such REMIC consist of property described in any of the preced-
    21  ing subclauses of this clause, except that  if  ninety-five  percent  or
    22  more  of the assets of such REMIC are assets described in subclauses (A)
    23  through (E) of this clause, the entire interest in the REMIC shall qual-
    24  ify; (G) any mortgage-backed security which represents  ownership  of  a
    25  fractional  undivided  interest  in a trust, the assets of which consist
    26  primarily of mortgage loans,  provided  that  the  real  property  which
    27  serves  as  security for the loans is (or from the proceeds of the loan,
    28  will become) the type of property described in  subclause  (D)  of  this
    29  clause  and  any  collateralized  mortgage  obligation, the security for
    30  which consists primarily of mortgage loans that maintain as security the
    31  type of property described in subclause (D) of this clause; (H)  certif-
    32  icates of deposit in, or obligations of, a corporation organized under a
    33  state  law  which specifically authorizes such corporation to insure the
    34  deposits or share accounts of member associations; (I) loans secured  by
    35  an  interest  in educational, health, or welfare institutions or facili-
    36  ties, including structures designed or used  primarily  for  residential
    37  purposes  for  students, residents, and persons undercare, employees, or
    38  members of the staff of such institutions or facilities; (J) loans  made
    39  for  the payment of expenses of college or university education or voca-
    40  tional training; (K) property used by the taxpayer in support  of  busi-
    41  ness  which  consists principally of acquiring the savings of the public
    42  and investing in loans; and (L) loans for  which  the  taxpayer  is  the
    43  creditor  and  which  are wholly secured by loans described in subclause
    44  (D) of this clause.
    45    The value of accrued interest receivable and any loss-sharing  commit-
    46  ment  or other loan guaranty by a governmental agency will be considered
    47  part of the basis in the loans to which the  accrued  interest  or  loss
    48  protection applies.
    49    (ii)  At  the  election  of  the taxpayer, the percentage specified in
    50  clause (i) of this subparagraph shall be applied on  the  basis  of  the
    51  average assets outstanding during the taxable year, in lieu of the close
    52  of  the taxable year. The taxpayer can elect to compute an average using
    53  the assets measured on the first day of the taxable year and on the last
    54  day of each subsequent quarter, or month or day during the taxable year.
    55  This election may be made annually.

        S. 4610--A                         23                         A. 6721--A
 
     1    (iii) For purposes of subclause (D) of clause  (i)  of  this  subpara-
     2  graph,  if  a  multifamily structure securing a loan is used in part for
     3  nonresidential use purposes, the entire loan  is  deemed  a  residential
     4  real property loan if the planned residential use exceeds eighty percent
     5  of  the property's planned use (measured, at the taxpayer's election, by
     6  using square footage or gross rental revenue, and determined as  of  the
     7  time the loan is made).
     8    (iv) For purposes of subclause (D) of clause (i) of this subparagraph,
     9  loans  made  to  finance the acquisition or development of land shall be
    10  deemed to be loans secured by an interest in residential  real  property
    11  if  there  is a reasonable assurance that the property will become resi-
    12  dential real property within a period of three years from  the  date  of
    13  acquisition  of  such  land;  but  this sentence shall not apply for any
    14  taxable year unless, within such three year period,  such  land  becomes
    15  residential  real  property.  For  purposes  of  determining whether any
    16  interest in a REMIC qualifies under subclause (F) of clause (i) of  this
    17  subparagraph,  any  regular interest in another REMIC held by such REMIC
    18  shall be treated as a loan described  in  a  preceding  subclause  under
    19  principles  similar  to the principle of such subclause (F), except that
    20  if such REMICs are part of a tiered structure, they shall be treated  as
    21  one REMIC for purposes of such subclause (F).
    22    (3)  For  purposes  of  this  paragraph,  a  "thrift institution" is a
    23  savings bank, a savings and loan association, or other savings  institu-
    24  tion chartered and supervised as such under federal or state law.
    25    (t)  Subtraction modification for qualified affordable housing and low
    26  income community loans.
    27    (1) A taxpayer that owns a  qualifying  loan  within  the  meaning  of
    28  clause  (iii)  of  subparagraph two of this paragraph shall be allowed a
    29  deduction in computing entire net income equal to  the  amount  computed
    30  under subparagraph two of this paragraph.
    31    (2)(i)  The  deduction  allowed  in subparagraph one of this paragraph
    32  shall be equal to:
    33    (A) if the total average value during the taxable year of  the  assets
    34  of  the  taxpayer,  or if the taxpayer is included in a combined report,
    35  the assets of the combined reporting group of the taxpayer under section
    36  11-654.3 of  this  subchapter,  does  not  exceed  one  hundred  billion
    37  dollars, the taxpayer's net interest income from qualifying loans, or
    38    (B)  if  the total average value during the taxable year of the assets
    39  of the taxpayer, or if the taxpayer is included in  a  combined  report,
    40  the assets of the combined reporting group of the taxpayer under section
    41  11-654.3  of this subchapter, exceeds one hundred billion dollars but is
    42  less than one hundred fifty billion dollars, the taxpayer's net interest
    43  income from qualifying loans multiplied by a fraction, the numerator  of
    44  which is one hundred fifty billion dollars minus the total average value
    45  during the taxable year of the assets of the taxpayer, or if the taxpay-
    46  er  is included in a combined report, the assets of the combined report-
    47  ing group of the taxpayer under section 11-654.3 of this subchapter, and
    48  the denominator of which is fifty billion dollars.
    49    (ii)(A) Net interest income  from  qualifying  loans  shall  mean  the
    50  taxpayer's net interest income from loans during the taxable year multi-
    51  plied by a fraction, the numerator of which is the gross interest income
    52  during  the  taxable  year  from qualifying loans and the denominator of
    53  which is the gross interest income from all loans.
    54    (B) Net interest income from loans shall mean  gross  interest  income
    55  during  the  taxable  year  from  loans less gross interest expense from
    56  loans. Gross interest expense from loans is  determined  by  multiplying

        S. 4610--A                         24                         A. 6721--A
 
     1  gross  interest  expense  by  a  fraction, the numerator of which is the
     2  average total value of loans owned by the taxpayer  during  the  taxable
     3  year  and  the  denominator  of which is the average total assets of the
     4  taxpayer for the year.
     5    (C) Measurement of assets. For purposes of this paragraph:
     6    (I)  Total  assets  are  those assets that are properly reflected on a
     7  balance sheet, computed in the same manner as is required by the banking
     8  regulator, if applicable, of the  taxpayers  included  in  the  combined
     9  return.
    10    (II)  Assets  will only be included if the income or expenses of which
    11  are properly reflected (or would have been  properly  reflected  if  not
    12  fully  depreciated  or expensed, or depreciated or expensed to a nominal
    13  amount) in the computation of the taxpayer's entire net income  for  the
    14  taxable year. Assets will not include deferred tax assets and intangible
    15  assets identified as "goodwill".
    16    (III)  Tangible  real  and personal property, such as buildings, land,
    17  machinery, and equipment, shall be valued at cost. Leased assets will be
    18  valued at the annual lease payment multiplied by eight. Intangible prop-
    19  erty, such as loans and investments,  shall  be  valued  at  book  value
    20  exclusive of reserves.
    21    (IV)  Average  assets  are  computed  using the assets measured on the
    22  first day of the taxable year, and on the last day  of  each  subsequent
    23  quarter of the taxable year or month or day during the taxable year.
    24    (iii)  A qualifying loan is a loan that meets the conditions specified
    25  in subclause (A) through subclause (E) of this clause.
    26    (A) The loan is originated by the taxpayer lender or purchased by  the
    27  taxpayer  immediately after its origination in connection with a commit-
    28  ment to purchase made by the taxpayer prior to the loan's origination.
    29    (B) Satisfies conditions of item (I) or (II) or this subclause.
    30    (I) The loan is secured by a housing accommodation located within  the
    31  city,  where  there  are rental units in such housing accommodation that
    32  are qualifying units, which for purposes of this subclause, means  units
    33  subject  to  rent  control, rent stabilization or to a regulatory agree-
    34  ment, provided that, each such loan will be considered a qualifying loan
    35  for purposes of this paragraph only in proportion to a percentage  equal
    36  to  the  number  of  qualifying units divided by the total number of all
    37  residential and commercial units located on the site of the real proper-
    38  ty securing the loan, as determined as of the date the loan is made.
    39    (II) To the extent not included in item (I) of this  subclause,  loans
    40  secured  by residential real property located in a low-income community.
    41  For purposes of this paragraph, low-income community  areas  are  census
    42  tracts  within  the  city in which the poverty rate for such tract is at
    43  least twenty percent and the median family income for  such  tract  does
    44  not  exceed  eighty  percent  of metropolitan area median family income.
    45  This determination will be made by reference to the poverty  and  median
    46  family income census data for application of section 45D of the internal
    47  revenue  code of 1986, as in effect on the effective date of the chapter
    48  of the laws of two thousand fifteen that added this subchapter.
    49    (C) The loan is not treated as a qualifying loan in the computation of
    50  a subtraction from entire net income pursuant to paragraph (q)  of  this
    51  subdivision.
    52    (D) If the taxpayer applies a subtraction pursuant to paragraph (r) of
    53  this subdivision, the interest or net gains from the loan are not recog-
    54  nized by a captive REIT as defined in section 11-601 of this chapter.
    55    (E)  A  loan that meets the definition of a qualifying loan in a prior
    56  taxable year (including years prior to the effective date of this  para-

        S. 4610--A                         25                         A. 6721--A
 
     1  graph) remains a qualifying loan in taxable years during and after which
     2  such  loan is acquired by another corporation in the taxpayer's combined
     3  reporting group under section 11-654.3 of this subchapter.
     4    (iv) For purposes of this paragraph, the following terms shall mean:
     5    (A)  "Housing  accommodations"  shall  mean  a  multiple dwelling that
     6  contains at least five dwelling units together with the  land  on  which
     7  such structure is situated.
     8    (B)  "Regulatory  agreement"  shall  mean  a written agreement with or
     9  approved by any local, municipal, state,  federal  or  other  government
    10  agency  that  requires the provision of housing accommodations for fami-
    11  lies and persons of low or moderate income, and binds the owner of  such
    12  real property and its successors and assigns. A regulatory agreement may
    13  include  such  other terms and conditions as the locality, municipality,
    14  state, or federal government shall determine.
    15    (C) "Rent stabilization" shall mean, collectively, the rent stabiliza-
    16  tion law of nineteen hundred sixty-nine, the  rent  stabilization  code,
    17  and the emergency tenant protection act of nineteen seventy-four, all as
    18  in  effect  as  of  the effective date of the chapter of the laws of two
    19  thousand fifteen that added this subchapter or  as  amended  thereafter,
    20  together  with any successor statutes or regulations addressing substan-
    21  tially the same subject matter.
    22    9. (a) The term "calendar year" means  a  period  of  twelve  calendar
    23  months (or any shorter period beginning on the date the taxpayer becomes
    24  subject  to  the  tax  imposed by this subchapter) ending on the thirty-
    25  first day of December, provided the taxpayer  keeps  its  books  on  the
    26  basis  of  such  period  or on the basis of any period ending on any day
    27  other than the last day of a calendar month, or  provided  the  taxpayer
    28  does  not  keep  books,  and  includes, in case the taxpayer changes the
    29  period on the basis of which it keeps its books from a fiscal year to  a
    30  calendar  year, the period from the close of its last old fiscal year up
    31  to and including the following December thirty-first.
    32    (b) The term "fiscal year" means a period of  twelve  calendar  months
    33  (or  any  shorter  period  beginning  on  the  date the taxpayer becomes
    34  subject to the tax imposed by this subchapter) ending on the last day of
    35  any month other than December, provided the taxpayer keeps its books  on
    36  the basis of such period, and includes, in case the taxpayer changes the
    37  period  on the basis of which it keeps its books from a calendar year to
    38  a fiscal year or from one fiscal year to another fiscal year, the period
    39  from the close of its last old calendar or fiscal year up  to  the  date
    40  designated as the close of its new fiscal year.
    41    10.  The  term  "tangible  personal property" means corporeal personal
    42  property,  such  as  machinery,  tools,  implements,  goods,  wares  and
    43  merchandise,  and  does  not  mean  money,  deposits in banks, shares of
    44  stock, bonds, notes, credits or evidences of an  interest  property  and
    45  evidences of debt.
    46    11.  The  term "internal revenue code" means, unless otherwise specif-
    47  ically stated in this subchapter, the internal revenue code of 1986,  as
    48  amended.
    49    12.  The  term  "combinable captive insurance company" means an entity
    50  that is treated as an association taxable as  a  corporation  under  the
    51  internal  revenue  code: (a) more than fifty percent of the voting stock
    52  of which is owned or controlled, directly or  indirectly,  by  a  single
    53  entity  that is treated as an association taxable as a corporation under
    54  the internal revenue code and not exempt from federal income tax;
    55    (b) that is licensed as a captive insurance company under the laws  of
    56  this state or another jurisdiction;

        S. 4610--A                         26                         A. 6721--A
 
     1    (c) whose business includes providing, directly and indirectly, insur-
     2  ance  or  reinsurance covering the risks of its parent and/or members of
     3  its affiliated group; and
     4    (d) fifty percent or less of whose gross receipts for the taxable year
     5  consist  of  premiums  from  arrangements  that constitute insurance for
     6  federal income tax purposes.
     7    For purposes of this subdivision,  "affiliated  group"  has  the  same
     8  meaning  as  that  term  is given in section fifteen hundred four of the
     9  internal revenue code, except that the term "common parent  corporation"
    10  in  that  section  is  deemed  to mean any person, as defined in section
    11  seven thousand seven hundred one of the internal revenue code and refer-
    12  ences to "at least eighty percent" in section fifteen  hundred  four  of
    13  the  internal  revenue  code  are to be read as "fifty percent or more;"
    14  section fifteen hundred four of the internal revenue code is to be  read
    15  without  regard to the exclusions provided for in subsection (b) of that
    16  section; "premiums" has the same meaning as that term is given in  para-
    17  graph  one  of subdivision (c) of section fifteen hundred ten of the tax
    18  law, except that it includes consideration  for  annuity  contracts  and
    19  excludes  any  part  of  the consideration for insurance, reinsurance or
    20  annuity contracts that do not provide bona fide  insurance,  reinsurance
    21  or  annuity benefits; and "gross receipts" includes the amounts included
    22  in gross receipts for purposes of paragraph fifteen of subsection (c) of
    23  section five hundred one of the internal revenue code, except that those
    24  amounts also include all premiums as defined in this subdivision.
    25    13. The term "partnership" includes a syndicate,  group,  pool,  joint
    26  venture,  or  other  unincorporated organization, through or by means of
    27  which any business, financial operation, or venture is carried  on,  and
    28  which  is  not  a  corporation  as  defined  in  subdivision one of this
    29  section, or a trust or estate that is separate from its owner under part
    30  one of subchapter J of chapter one of subtitle A of the internal revenue
    31  code; and the term "partner" includes a member in such syndicate, group,
    32  pool, joint venture, or organization.
    33    § 11-653 Imposition of tax; exemptions. 1. (a) For  the  privilege  of
    34  doing business, or of employing capital, or of owning or leasing proper-
    35  ty  in  the city in a corporate or organized capacity, or of maintaining
    36  an office in the city, for all or any part of  each  of  its  fiscal  or
    37  calendar  years,  every  domestic  or foreign corporation, except corpo-
    38  rations specified in subdivision four of this  section,  shall  annually
    39  pay  a  tax,  upon  the basis of its business income, or upon such other
    40  basis as may be applicable as hereinafter provided, for such  fiscal  or
    41  calendar  year or part thereof, on a report which shall be filed, except
    42  as hereinafter provided, on or before the fifteenth day  of  March  next
    43  succeeding  the  close  of each such year, or, in the case of a taxpayer
    44  which reports on the basis of a fiscal year,  within  two  and  one-half
    45  months after the close of such fiscal year, and shall be paid as herein-
    46  after provided.
    47    (b) Intentionally omitted.
    48    (c)  A  corporation is doing business in the city if (1) it has issued
    49  credit cards to one thousand  or  more  customers  who  have  a  mailing
    50  address  within  the city as of the last day of its taxable year, (2) it
    51  has merchant customer contracts with merchants and the total  number  of
    52  locations  covered  by  those  contracts  equals  one  thousand  or more
    53  locations in the city to whom  the  corporation  remitted  payments  for
    54  credit  card transactions during the taxable year, or (3) the sum of the
    55  number of customers described in subparagraph one of this paragraph plus
    56  the number of locations covered by its contracts described  in  subpara-

        S. 4610--A                         27                         A. 6721--A
 
     1  graph two of this paragraph equals one thousand or more. As used in this
     2  subdivision,  the  term  "credit card" includes bank, credit, travel and
     3  entertainment cards.
     4    (d) Intentionally omitted.
     5    (e) Intentionally omitted.
     6    (f)  If  a partnership is doing business, employing capital, owning or
     7  leasing property in the city, or maintaining an office in the city,  any
     8  corporation  that  is  a partner in such partnership shall be subject to
     9  tax under this subchapter as described in the regulations of the commis-
    10  sioner of finance.
    11    2. A foreign corporation shall not be deemed  to  be  doing  business,
    12  employing  capital, owning or leasing property, or maintaining an office
    13  in the city, for the purposes of this subchapter, by reason of:
    14    (a) the maintenance of cash balances with banks or trust companies  in
    15  the city, or
    16    (b)  the  ownership of shares of stock or securities kept in the city,
    17  if kept in a safe deposit box, safe, vault or  other  receptacle  rented
    18  for  the  purpose, or if pledged as collateral security, or if deposited
    19  with one or more banks or trust companies, or brokers who are members of
    20  a recognized security exchange, in safekeeping or custody accounts, or
    21    (c) the taking of any action by any such  bank  or  trust  company  or
    22  broker, which is incidental to the rendering of safekeeping or custodian
    23  service to such corporation, or
    24    (d)  the  maintenance of an office in the city by one or more officers
    25  or directors of the corporation who are not employees of the corporation
    26  if the corporation otherwise is not doing business in the city, and does
    27  not employ capital or own or lease property in the city, or
    28    (e) the keeping of books or records of a corporation in  the  city  if
    29  such  books or records are not kept by employees of such corporation and
    30  such corporation does not otherwise do business, employ capital, own  or
    31  lease property or maintain an office in the city, or
    32    (f) any combination of the foregoing activities.
    33    2-a.  An  alien  corporation shall not be deemed to be doing business,
    34  employing capital, owning or leasing property, or maintaining an  office
    35  in  the  city, for the purposes of this subchapter, if its activities in
    36  the city are limited solely to:
    37    (a) investing or trading in stocks and securities for its own  account
    38  within  the  meaning of clause (ii) of subparagraph (A) of paragraph (2)
    39  of subsection (b) of section eight hundred sixty-four  of  the  internal
    40  revenue code, or:
    41    (b) investing or trading in commodities for its own account within the
    42  meaning  of  clause  (ii)  of  subparagraph  (B)  of  paragraph  (2)  of
    43  subsection (b) of section  eight  hundred  sixty-four  of  the  internal
    44  revenue code, or
    45    (c)  any combination of activities described in paragraphs (a) and (b)
    46  of this subdivision.
    47    An alien corporation that under any provision of the internal  revenue
    48  code  is  not  treated as a "domestic corporation" as defined in section
    49  seven thousand seven hundred one of such code  and  has  no  effectively
    50  connected  income  for  the taxable year pursuant to clause three of the
    51  opening paragraph  of  subdivision  eight  of  section  11-652  of  this
    52  subchapter  shall  not  be subject to tax under this subchapter for that
    53  taxable year. For purposes of this subchapter, an alien corporation is a
    54  corporation organized under the laws of  a  country,  or  any  political
    55  subdivision  thereof,  other  than the United States, or organized under

        S. 4610--A                         28                         A. 6721--A
 
     1  the laws of a  possession,  territory  or  commonwealth  of  the  United
     2  States.
     3    3. Any receiver, referee, trustee, assignee or other fiduciary, or any
     4  officer  or  agent  appointed by any court, who conducts the business of
     5  any corporation, shall be subject to the tax imposed by this  subchapter
     6  in  the  same  manner  and  to  the  same extent as if the business were
     7  conducted by the agents or officers of  such  corporation.  A  dissolved
     8  corporation which continues to conduct business shall also be subject to
     9  the tax imposed by this subchapter.
    10    4. (a) Corporations subject to tax under chapter eleven of this title,
    11  any  trust  company organized under a law of this state all of the stock
    12  of which is owned by not less than twenty savings banks organized  under
    13  a  law of this state, housing companies organized and operating pursuant
    14  to the provisions of article two of the  private  housing  finance  law,
    15  housing  development fund companies organized pursuant to the provisions
    16  of article eleven of  the  private  housing  finance  law,  corporations
    17  described  in  section  three  of the tax law, a corporation principally
    18  engaged in the operation of marine vessels whose activities in the  city
    19  are  limited exclusively to the use of property in interstate or foreign
    20  commerce, provided, however, such a corporation will not be  subject  to
    21  tax  under  this subchapter solely because it maintains an office in the
    22  city, or employs capital in the city, in connection  with  such  use  of
    23  property,  a  corporation  principally engaged in the conduct of a ferry
    24  business and operating between any of the boroughs of the city  under  a
    25  lease  granted  by the city and a corporation principally engaged in the
    26  conduct of an aviation, steamboat, ferry or navigation business, or  two
    27  or  more  of such businesses, all of the capital stock of which is owned
    28  by a municipal corporation of this state, shall not be  subject  to  tax
    29  under  this  subchapter;  provided, however, that any corporation, other
    30  than (1) a utility corporation subject to the supervision of  the  state
    31  department  of public service, and (2) for taxable years beginning on or
    32  after August first, two thousand two, a utility as defined  in  subdivi-
    33  sion six of section 11-1101 of this title, which is subject to tax under
    34  chapter  eleven  of this title as a vendor of utility services, shall be
    35  subject to tax under this subchapter, but in computing the  tax  imposed
    36  by this section pursuant to the provisions of clause (i) of subparagraph
    37  one  of  paragraph  (e)  of  subdivision  one  of section 11-654 of this
    38  subchapter, business income allocated to the city pursuant to  paragraph
    39  (a)  of  subdivision  three  of  such  section  shall  be reduced by the
    40  percentage which such corporation's gross operating  income  subject  to
    41  tax under chapter eleven of this title is of its gross operating income.
    42    (b)  The  term "gross operating income", when used in paragraph (a) of
    43  this subdivision, means receipts received in or by reason of any  trans-
    44  action  had  and  consummated  in  the city, including cash, credits and
    45  property of any kind or nature (whether or not such transaction is  made
    46  for  profit),  without any deduction therefrom on account of the cost of
    47  the property sold, the cost of materials used, labor or other  services,
    48  delivery  costs or any other costs whatsoever, interest or discount paid
    49  or any other expenses whatsoever.
    50    (c) If it shall appear to the commissioner of finance that the  appli-
    51  cation  of  the  proviso  of paragraph (a) of this subdivision, does not
    52  fairly and equitably reflect the  portion  of  the  taxpayer's  business
    53  income  allocable  to  the city which is attributable to its city activ-
    54  ities which are not taxable under chapter  eleven  of  this  title,  the
    55  commissioner  of  finance may prescribe other means or methods of deter-
    56  mining such portion, including the use of the books and records  of  the

        S. 4610--A                         29                         A. 6721--A
 
     1  taxpayer,  if the commissioner of finance finds that such means or meth-
     2  ods used in keeping them fairly and equitably reflect such portion.
     3    5. Intentionally omitted.
     4    6. Intentionally omitted.
     5    7.  For any taxable year of a real estate investment trust, as defined
     6  in section eight hundred fifty-six of  the  internal  revenue  code,  in
     7  which  such  trust  is  subject to federal income taxation under section
     8  eight hundred fifty-seven of such code, such trust shall be subject to a
     9  tax computed under either clause (i) of subparagraph  one  of  paragraph
    10  (e)  of  subdivision one of section 11-654 of this subchapter, or clause
    11  (iv), whichever is greater. In the case of such a real estate investment
    12  trust, including a captive REIT as defined in  section  11-601  of  this
    13  chapter,  the  term  "entire  net  income" means "real estate investment
    14  trust taxable income" as defined in paragraph two of subdivision (b)  of
    15  section  eight hundred fifty-seven (as modified by section eight hundred
    16  fifty-eight) of the internal revenue code plus the amount taxable  under
    17  paragraph  three of subdivision (b) of section eight hundred fifty-seven
    18  of such code, subject to the modifications required by subdivision eight
    19  of  section  11-652  of  this  subchapter  including  the  modifications
    20  required  by  paragraphs  (d)  and  (e)  of subdivision three of section
    21  11-654 of this subchapter.
    22    8. For any taxable year of a regulated investment company, as  defined
    23  in  section  eight  hundred  fifty-one  of the internal revenue code, in
    24  which such company is subject to federal income taxation  under  section
    25  eight hundred fifty-two of such code, such company shall be subject to a
    26  tax  computed  under  either  clause  one or four of subparagraph (a) of
    27  paragraph E of subdivision one of section  11-654  of  this  subchapter,
    28  whichever  is greater. In the case of such a regulated investment compa-
    29  ny, including a captive RIC as defined in section 11-601 of  this  chap-
    30  ter,  the  term  "entire  net  income"  used  in subdivision one of this
    31  section means "investment company taxable income" as  defined  in  para-
    32  graph  two  of  subdivision  (b)  of section eight hundred fifty-two, as
    33  modified by section eight hundred fifty-five, of  the  internal  revenue
    34  code plus the amount taxable under paragraph three of subdivision (b) of
    35  section  eight  hundred  fifty-two of such code subject to the modifica-
    36  tions required by subdivision eight of section 11-652 of  this  subchap-
    37  ter,  including  the  modification required by paragraphs (d) and (e) of
    38  subdivision three of section 11-654 of this subchapter.
    39    9. An organization  described  in  paragraph  two  or  twenty-five  of
    40  subsection  (c) of section five hundred one of the internal revenue code
    41  shall be exempt from all taxes imposed by this subchapter.
    42    § 11-654 Computation of tax. 1. (a) Intentionally omitted.
    43    (b) Intentionally omitted.
    44    (c) Intentionally omitted.
    45    (d) Intentionally omitted.
    46    (e) The tax imposed by subdivision  one  of  section  11-653  of  this
    47  subchapter shall be, in the case of each taxpayer:
    48    (1) whichever of the following amounts is the greatest:
    49    (i)  an  amount computed on its business income or the portion of such
    50  business income allocated  within  the  city  as  hereinafter  provided,
    51  subject to the application of paragraphs (j) and (k) of this subdivision
    52  and  any  modification required by paragraphs (d) and (e) of subdivision
    53  three of this section, at the rate of (1) nine per centum for  financial
    54  corporations,  as  defined  in this clause, or (2) eight and eighty-five
    55  one hundredths per centum for all other corporations.  For  purposes  of
    56  this  clause,  "financial  corporation"  means  a corporation or, if the

        S. 4610--A                         30                         A. 6721--A
 
     1  corporation is included in a combined group, a combined group, that  (A)
     2  has  total assets reflected on its balance sheet at the end of its taxa-
     3  ble year in excess of one hundred billion dollars, computed under gener-
     4  ally accepted accounting principles and (B)(I) allocates more than fifty
     5  percent  of  the  receipts  included  in the denominator of its receipts
     6  fraction, determined under section 11-654.2 of this subchapter, pursuant
     7  to subdivision five of section 11-654.2 of this subchapter for its taxa-
     8  ble year, or (II) is itself or is included in a combined group in  which
     9  more  than  fifty  percent  of the total assets reflected on its balance
    10  sheet at the end of its taxable year are held  by  one  or  more  corpo-
    11  rations  that are classified as (a) registered under state law as a bank
    12  holding company or registered under the Federal Bank Holding Company Act
    13  of 1956 (12 U.S.C. § 1841, et seq., as  amended),  or  registered  as  a
    14  savings  and loan holding company under the Federal National Housing Act
    15  (12 U.S.C. 1701, as amended), (b) a national bank organized and existing
    16  as a national  bank  association  pursuant  to  the  provisions  of  the
    17  National  Bank  Act, 12 U.S.C. 21 et. seq., (c) a savings association or
    18  federal savings bank as defined in the Federal Deposit Insurance Act, 12
    19  U.S.C. § 1813(b)(1), (d) a bank, savings association, or thrift institu-
    20  tion incorporated or organized under the laws of any state, (e) a corpo-
    21  ration organized under the provisions of 12 U.S.C. §§ 611 to 631, (f) an
    22  agency or branch or a foreign depository as defined in 12 U.S.C. § 3101,
    23  (g) a registered securities or commodities broker or  dealer  registered
    24  as  such  by  the  securities and exchange commission or the commodities
    25  futures trading commission, which shall include an OTC derivatives deal-
    26  er as defined under regulations of the securities and  exchange  commis-
    27  sion  at  title 17, part 240, section 3b-12 of the code of federal regu-
    28  lations (17 CFR 240.3b-12), or (h) any corporation whose voting stock is
    29  more than fifty percent owned, directly or indirectly, by any person  or
    30  business  entity  described  in  subitems  (a) through (g) of this item,
    31  other than an insurance company taxable under  article  thirty-three  of
    32  the tax law; or
    33    (ii)  an amount computed by multiplying its total business capital, or
    34  the portion thereof allocated within the city, as hereinafter provided,
    35    (A) except as provided in subclauses (B) and (C) of  this  clause,  by
    36  fifteen one-hundredths per centum;
    37    (B) in the case of a cooperative housing corporation as defined in the
    38  internal revenue code, by four one-hundredths per centum;
    39    (C)  in  the  case  of  the portion of total business capital directly
    40  attributable to a corporation that is or would be taxable under  chapter
    41  eleven  of  this  title (except for a vendor of utility services that is
    42  taxable under both chapter eleven of this title and this subchapter)  or
    43  a  corporation  that would have been taxable as an insurance corporation
    44  under former part IV, title R, chapter forty-six of  the  administrative
    45  code  of  the  city of New York as in effect on June thirtieth, nineteen
    46  hundred seventy-four, by seven and one-half one-hundredths  per  centum;
    47  and
    48    (D) subtracting ten thousand dollars from the sum of the amount of tax
    49  computed  pursuant  to  subclauses  (A),  (B)  and  (C)  of this clause,
    50  provided that if such amount of tax is less than zero it shall be deemed
    51  to be zero; and
    52    (E) provided that in no event shall the amount of tax computed  pursu-
    53  ant  to  subclause  (D)  of this clause on the taxpayer's total business
    54  capital, or the portion thereof allocated within the  city,  exceed  ten
    55  million dollars, or
    56    (iii) Intentionally omitted.

        S. 4610--A                         31                         A. 6721--A
 
     1    (iv) If New York city receipts are:                  Fixed dollar minimum
     2                                                         tax is:
     3  Not more than $100,000                                 $25
     4  More than $100,000 but not over $250,000               $75
     5  More than $250,000 but not over $500,000               $175
     6  More than $500,000 but not over $1,000,000             $500
     7  More than $1,000,000 but not over $5,000,000           $1,500
     8  More than $5,000,000 but not over $25,000,000          $3,500
     9  More than $25,000,000 but not over $50,000,000         $5,000
    10  More than $50,000,000 but not over $100,000,000        $10,000
    11  More than $100,000,000 but not over $250,000,000       $20,000
    12  More than $250,000,000 but not over $500,000,000       $50,000
    13  More than $500,000,000 but not over $1,000,000,000     $100,000
    14  Over $1,000,000,000                                    $200,000
    15    For  purposes  of this clause, New York city receipts are the receipts
    16  computed in accordance with section 11-654.2 of this subchapter for  the
    17  taxable year. If the taxable year is less than twelve months, the amount
    18  prescribed by this clause shall be reduced by twenty-five percent if the
    19  period  for which the taxpayer is subject to tax is more than six months
    20  but not more than nine months and by fifty percent  if  the  period  for
    21  which the taxpayer is subject to tax is not more than six months. If the
    22  taxable  year  is  less  than twelve months, the amount of New York city
    23  receipts for purposes of this  clause  is  determined  by  dividing  the
    24  amount  of  the receipts for the taxable year by the number of months in
    25  the taxable year and multiplying the result by twelve.
    26    (f) Intentionally omitted.
    27    (g) Intentionally omitted.
    28    (h) Intentionally omitted.
    29    (i) Intentionally omitted.
    30    (j) (1) If the amount of business income allocated within the city  as
    31  hereinafter  provided  is  less  than  one  million  dollars, the amount
    32  computed in clause (i) of subparagraph one  of  paragraph  (e)  of  this
    33  subdivision  shall  be  at the rate of six and five-tenths per centum of
    34  the amount of business income allocated within the city  as  hereinafter
    35  provided, subject to any modification required by paragraphs (d) and (e)
    36  of subdivision three of this section;
    37    (2)  Subject to subparagraph three of this paragraph, if the amount of
    38  business income allocated within the city as hereinafter provided is one
    39  million dollars or greater but less than one million five hundred  thou-
    40  sand  dollars,  the amount computed in clause (i) of subparagraph one of
    41  paragraph (e) of this subdivision shall be at the rate of  (i)  six  and
    42  five-tenths per centum, plus (ii) two and thirty-five one-hundredths per
    43  centum  multiplied  by  a  fraction  the numerator of which is allocated
    44  business income less one million dollars and the denominator of which is
    45  five hundred thousand dollars, of the amount of  business  income  allo-
    46  cated  within the city as hereinafter provided, subject to any modifica-
    47  tion required by paragraphs (d) and (e) of  subdivision  three  of  this
    48  section;
    49    (3)  Provided,  however,  notwithstanding anything to the contrary, if
    50  the amount of business income before allocation is two  million  dollars
    51  or greater but less than three million dollars, the rate of tax provided
    52  for in this paragraph shall not be less than (i) six and five-tenths per
    53  centum,  plus  (ii) two and thirty-five one-hundredths per centum multi-
    54  plied by a fraction the numerator of which  is  business  income  before
    55  allocation  less two million dollars and the denominator of which is one
    56  million dollars, and provided, however, notwithstanding anything to  the

        S. 4610--A                         32                         A. 6721--A
 
     1  contrary,  if  the  amount of business income before allocation is three
     2  million dollars or greater, the rate of tax shall be eight  and  eighty-
     3  five  one-hundredths  percentum  or,  in  the case of a financial corpo-
     4  ration, as defined in clause (i) of subparagraph one of paragraph (e) of
     5  subdivision  one  of  section  11-654,  if the amount of business income
     6  before allocation is three million dollars or greater the  rate  of  tax
     7  shall be nine per centum.
     8    (k)(1) For qualified New York manufacturing corporations as defined in
     9  subparagraph  four  of  this paragraph, if the amount of business income
    10  allocated within the city as  hereinafter  provided  is  less  than  ten
    11  million  dollars,  the amount computed in clause (i) of subparagraph one
    12  of paragraph (e) of this subdivision shall be at the rate  of  four  and
    13  four  hundred  twenty-five  one  thousandths per centum, of its business
    14  income allocated within the city as hereinafter provided, subject to any
    15  modification required by paragraphs (d) and (e) of subdivision three  of
    16  this section;
    17    (2)  Subject to subparagraph three of this paragraph for qualified New
    18  York manufacturing corporations as defined in subparagraph four of  this
    19  paragraph, if the amount of business income allocated within the city as
    20  hereinafter  provided  is  ten  million dollars or greater but less than
    21  twenty million dollars, the amount computed in clause  (i)  of  subpara-
    22  graph  one  of paragraph (e) of this subdivision shall be at the rate of
    23  (i) four and four hundred twenty-five one-thousandths per  centum,  plus
    24  (ii) four and four hundred twenty-five one-thousandths per centum multi-
    25  plied  by a fraction the numerator of which is allocated business income
    26  less ten million dollars and the denominator of  which  is  ten  million
    27  dollars,  of  its business income or the portion of such business income
    28  allocated within the  city  as  hereinafter  provided,  subject  to  any
    29  modification  required by paragraphs (d) and (e) of subdivision three of
    30  this section;
    31    (3) Notwithstanding anything to the contrary, if the amount  of  busi-
    32  ness  income  before allocation is twenty million dollars or greater but
    33  less than forty million dollars, the rate of tax provided  for  in  this
    34  paragraph  shall  not be less than (i) four and four hundred twenty-five
    35  one thousandths percentum, plus (ii) four and four  hundred  twenty-five
    36  one  thousandths  percentum  multiplied  by  a fraction the numerator of
    37  which is business income before allocation less twenty  million  dollars
    38  and  the  denominator  of which is twenty million dollars, and provided,
    39  however, notwithstanding anything to the  contrary,  if  the  amount  of
    40  business  income  before allocation is forty million dollars or greater,
    41  the rate of tax  shall  be  eight  and  eighty-five  one-hundredths  per
    42  centum.
    43    (4)(i)  As  used  in this subparagraph, the term "manufacturing corpo-
    44  ration" means a corporation principally engaged in the manufacturing and
    45  sale thereof of tangible personal property; and the term "manufacturing"
    46  includes the process (including the assembly process) (A) of working raw
    47  materials into wares suitable for use or (B) which gives new shapes, new
    48  qualities or new combinations to matter which already has  gone  through
    49  some  artificial process, by the use of machinery, tools, appliances and
    50  other similar equipment. Moreover, in the case of a combined  report,  a
    51  combined  group  shall  be  considered a "manufacturing corporation" for
    52  purposes of this subparagraph only if  the  combined  group  during  the
    53  taxable  year is principally engaged in the activities set forth in this
    54  paragraph, or any combination thereof. A taxpayer or, in the case  of  a
    55  combined  report,  a  combined  group, shall be "principally engaged" in
    56  activities described above if, during the taxable year, more than  fifty

        S. 4610--A                         33                         A. 6721--A
 
     1  percent of the gross receipts of the taxpayer or combined group, respec-
     2  tively,  are  derived  from  receipts from the sale of goods produced by
     3  such activities. In computing a combined group's gross receipts,  inter-
     4  corporate receipts shall be eliminated.
     5    (ii) A "qualified New York manufacturing corporation" is a manufactur-
     6  ing  corporation  that  has  property in the state which is described in
     7  subparagraph five of this paragraph and either (A) the adjusted basis of
     8  such property for federal income tax purposes at the close of the  taxa-
     9  ble  year is at least one million dollars or (B) more than fifty percen-
    10  tum of its real and personal property is located in the state.
    11    (5) For purposes of subclause (A) of clause (ii) of subparagraph  four
    12  of  this  paragraph,  property  includes  tangible personal property and
    13  other tangible property, including buildings and  structural  components
    14  of  buildings,  which  are:  depreciable pursuant to section one hundred
    15  sixty-seven of the internal revenue code, have a  useful  life  of  four
    16  years  or more, are acquired by purchase as defined in subsection (d) of
    17  section one hundred seventy-nine of the internal revenue  code,  have  a
    18  situs  in  the  state  and  are  principally used by the taxpayer in the
    19  production of goods by manufacturing. Property used in the production of
    20  goods shall include machinery,  equipment  or  other  tangible  property
    21  which  is principally used in the repair and service of other machinery,
    22  equipment or other tangible property used principally in the  production
    23  of  goods and shall include all facilities used in the production opera-
    24  tion, including storage of material to be used in production and of  the
    25  products that are produced.
    26    2.  The  amount  of  investment  capital and business capital shall be
    27  determined by taking the average value  of  the  gross  assets  included
    28  therein   (less   liabilities   deductible  therefrom  pursuant  to  the
    29  provisions of subdivisions four  and  six  of  section  11-652  of  this
    30  subchapter),  and,  if  the period covered by the report is other than a
    31  period of twelve calendar months,  by  multiplying  such  value  by  the
    32  number  of calendar months or major parts thereof included in such peri-
    33  od, and dividing the product thus obtained by twelve.  For  purposes  of
    34  this  subdivision,  real  property  and  marketable  securities shall be
    35  valued at fair market value and the value  of  personal  property  other
    36  than marketable securities shall be the value thereof shown on the books
    37  and  records  of  the  taxpayer  in  accordance  with generally accepted
    38  accounting principles.
    39    3. The portion of the business income of a taxpayer to be allocated to
    40  the city shall be determined as follows:
    41    (a) multiply its business income by a business  allocation  percentage
    42  to be determined by:
    43    (1) ascertaining the percentage which the average value of the taxpay-
    44  er's real and tangible personal property, whether owned or rented to it,
    45  within  the  city  during  the period covered by its report bears to the
    46  average value of all the taxpayer's real and tangible personal property,
    47  whether owned or rented to it, wherever situated during such period. For
    48  the purpose of this subparagraph, the term "value of the taxpayer's real
    49  and tangible personal property" shall mean the adjusted  bases  of  such
    50  properties  for  federal income tax purposes (except that in the case of
    51  rented property such value shall mean the product of (i) eight and  (ii)
    52  the gross rents payable for the rental of such property during the taxa-
    53  ble  year);  provided,  however,  that the taxpayer may make a one-time,
    54  revocable election, pursuant to regulations promulgated by  the  commis-
    55  sioner  of  finance  to use fair market value as the value of all of its
    56  real and tangible personal property, provided that such election is made

        S. 4610--A                         34                         A. 6721--A
 
     1  on or before the due date for filing a report under  section  11-655  of
     2  this  subchapter  for the taxpayer's first taxable year commencing on or
     3  after January  first,  two  thousand  fifteen  and  provided  that  such
     4  election  shall  not apply to any taxable year with respect to which the
     5  taxpayer is included on a combined report unless each of  the  taxpayers
     6  included  on  such  report  has  made  such an election which remains in
     7  effect for such year or to any taxpayer that was subject  to  tax  under
     8  subchapter  two  of  this chapter and did not have an election in effect
     9  under subparagraph one of paragraph (a) of subdivision three of  section
    10  11-604 of this chapter on December thirty-first, two thousand fourteen;
    11    (2)  ascertaining  the percentage determined under section 11-654.2 of
    12  this subchapter;
    13    (3) ascertaining the percentage of the total wages, salaries and other
    14  personal service compensation, similarly computed, during such period of
    15  employees within the city, except general  executive  officers,  to  the
    16  total wages, salaries and other personal service compensation, similarly
    17  computed,  during such period of all the taxpayer's employees within and
    18  without the city, except general executive officers; and
    19    (4) adding together the percentages so  determined  and  dividing  the
    20  result by the number of percentages.
    21    (5) Intentionally omitted.
    22    (6) Intentionally omitted.
    23    (7) Intentionally omitted.
    24    (8) Intentionally omitted.
    25    (9) Intentionally omitted.
    26    (10) Notwithstanding subparagraphs one through four of this paragraph,
    27  the business allocation percentage, to the extent that it is computed by
    28  reference to the percentages determined under subparagraphs one, two and
    29  three  of  this  paragraph, shall be computed in the manner set forth in
    30  this subparagraph.
    31    (i) Intentionally omitted.
    32    (ii) Intentionally omitted.
    33    (iii) Intentionally omitted.
    34    (iv) Intentionally omitted.
    35    (v) Intentionally omitted.
    36    (vi) Intentionally omitted.
    37    (vii) For taxable years beginning in two thousand fifteen,  the  busi-
    38  ness  allocation  percentage  shall be determined by adding together the
    39  following percentages:
    40    (A) the product of ten percent and  the  percentage  determined  under
    41  subparagraph one of this paragraph;
    42    (B)  the product of eighty percent and the percentage determined under
    43  subparagraph two of this paragraph; and
    44    (C) the product of ten percent and  the  percentage  determined  under
    45  subparagraph three of this paragraph.
    46    (viii)  For taxable years beginning in two thousand sixteen, the busi-
    47  ness allocation percentage shall be determined by  adding  together  the
    48  following percentages:
    49    (A)  the product of six and one-half percent and the percentage deter-
    50  mined under subparagraph one of this paragraph;
    51    (B) the product of eighty-seven percent and the percentage  determined
    52  under subparagraph two of this paragraph; and
    53    (C)  the product of six and one-half percent and the percentage deter-
    54  mined under subparagraph three of this paragraph.

        S. 4610--A                         35                         A. 6721--A
 
     1    (ix) For taxable years beginning in two thousand seventeen, the  busi-
     2  ness  allocation  percentage  shall be determined by adding together the
     3  following percentages:
     4    (A)  the  product  of  three  and  one-half percent and the percentage
     5  determined under subparagraph one of this paragraph;
     6    (B) the product of ninety-three percent and the percentage  determined
     7  under subparagraph two of this paragraph; and
     8    (C)  the  product  of  three  and  one-half percent and the percentage
     9  determined under subparagraph three of this paragraph.
    10    (x) For taxable years beginning  after  two  thousand  seventeen,  the
    11  business  allocation percentage shall be the percentage determined under
    12  subparagraph two of this paragraph.
    13    (xi) The commissioner of finance shall promulgate rules  necessary  to
    14  implement  the  provisions of this subparagraph under such circumstances
    15  where any of the percentages to be determined  under  subparagraph  one,
    16  two or three of this paragraph cannot be determined because the taxpayer
    17  has no property, receipts or wages within or without the city.
    18    (xii)  Notwithstanding the provisions of clauses (viii), (ix), and (x)
    19  of this subparagraph, for taxable years beginning on  or  after  January
    20  first,  two thousand eighteen, a taxpayer that has fifty million dollars
    21  or less of receipts allocated to the city as  determined  under  section
    22  11-654.2  of  this  subchapter,  or,  if  the  taxpayer is included in a
    23  combined group, a combined group that has fifty million dollars or  less
    24  of  receipts  allocated to the city as determined under section 11-654.2
    25  of this subchapter, may make a one-time election to determine its  busi-
    26  ness allocation percentage by adding together the following percentages:
    27    (A)  the  product  of  three  and  one-half percent and the percentage
    28  determined under subparagraph one of this paragraph;
    29    (B) the product of ninety-three percent and the percentage  determined
    30  under subparagraph two of this paragraph; and
    31    (C)  the  product  of  three  and  one-half percent and the percentage
    32  determined under subparagraph three of this paragraph.
    33    The election provided for in this clause must be made on  an  original
    34  or  amended  report  filed pursuant to section 11-655 of this subchapter
    35  for the taxpayer's or, if the taxpayer is included in a combined  group,
    36  the  combined group's, first taxable year commencing on or after January
    37  first, two thousand eighteen and shall remain in effect until revoked by
    38  the taxpayer, or if the taxpayer is included in a  combined  group,  the
    39  combined  group.  An  election  shall be revoked under this clause on an
    40  original or amended report filed pursuant  to  section  11-655  of  this
    41  subchapter  for  the  taxpayer's,  or  if  the taxpayer is included in a
    42  combined group, the combined group's, first taxable year with respect to
    43  which such revocation is to be effective. If the taxpayer is a member of
    44  a combined group, an election or revocation by the taxpayer  under  this
    45  clause shall apply to all members of the combined group.
    46    (11) A foreign air carrier described in the first sentence of subpara-
    47  graph  one  of paragraph (c-1) of subdivision eight of section 11-652 of
    48  this subchapter  shall  determine  its  business  allocation  percentage
    49  pursuant  to  subparagraphs one through four of this paragraph, as modi-
    50  fied by subparagraph ten of this paragraph, except that  the  numerators
    51  and  denominators involved in such computation shall exclude property to
    52  the extent employed in generating income excluded from entire net income
    53  for the taxable year pursuant to paragraph (c-1) of subdivision eight of
    54  section 11-652 of this subchapter, exclude such receipts as are excluded
    55  from entire net income for the taxable year pursuant to paragraph  (c-1)
    56  of  subdivision  eight of section 11-652 of this subchapter, and exclude

        S. 4610--A                         36                         A. 6721--A
 
     1  wages, salaries or other personal service compensation which are direct-
     2  ly attributable to the generation of income  excluded  from  entire  net
     3  income  for  the taxable year pursuant to paragraph (c-1) of subdivision
     4  eight of section 11-652 of this subchapter.
     5    (b) Intentionally omitted.
     6    (c) Intentionally omitted.
     7    (d)  In  any  taxable year when property is sold or otherwise disposed
     8  of, with respect to which a  deduction  has  been  allowed  pursuant  to
     9  subparagraph one or two of paragraph (d) of subdivision three of section
    10  11-604  of  this  chapter  or  subdivision (k) of section 11-641 of this
    11  chapter in any period in which the taxpayer was  subject  to  tax  under
    12  subchapter  two  of this chapter, the gain or loss thereon entering into
    13  the computation of  federal  taxable  income  shall  be  disregarded  in
    14  computing  entire  net income, and there shall be added to or subtracted
    15  from the portion of entire net income allocated within the city the gain
    16  or loss upon such sale or other disposition. In computing such  gain  or
    17  loss  the basis of the property sold or disposed of shall be adjusted to
    18  reflect the deduction allowed with respect to such property pursuant  to
    19  subparagraph one or two of paragraph (d) of subdivision three of section
    20  11-604  of this chapter. Provided, however, that no loss shall be recog-
    21  nized for the purposes of this subparagraph with respect to  a  sale  or
    22  other  disposition  of property to a person whose acquisition thereof is
    23  not a purchase as defined in  subsection  (d)  of  section  one  hundred
    24  seventy-nine of the internal revenue code.
    25    (e)  In  any  taxable year when property is sold or otherwise disposed
    26  of, with respect to which a  deduction  has  been  allowed  pursuant  to
    27  subparagraph one or two of paragraph (e) of subdivision three of section
    28  11-604  of  this  chapter  in any period the taxpayer was subject to tax
    29  under subchapter two of this chapter, the gain or loss thereon  entering
    30  into  the  computation of federal taxable income shall be disregarded in
    31  computing entire net income, and there shall be added to  or  subtracted
    32  from the portion of entire net income allocated within the city the gain
    33  or  loss  upon such sale or other disposition. In computing such gain or
    34  loss the basis of the property sold or disposed of shall be adjusted  to
    35  reflect  the deduction allowed with respect to such property pursuant to
    36  subparagraph one or two of paragraph (e) of subdivision three of section
    37  11-604 of this chapter.  Provided, however, that no loss shall be recog-
    38  nized for the purposes of this subparagraph with respect to  a  sale  or
    39  other  disposition  of property to a person whose acquisition thereof is
    40  not a purchase as defined in  subsection  (d)  of  section  one  hundred
    41  seventy-nine of the internal revenue code.
    42    4.  The  portion of the business capital of a taxpayer to be allocated
    43  within the city shall be determined by multiplying the amount thereof by
    44  the business allocation percentage determined as hereinabove provided.
    45    4-a. A corporation that is a partner in a  partnership  shall  compute
    46  tax  under  this  subchapter  using  any method required or permitted in
    47  regulations of the commissioner of finance.
    48    5. Intentionally omitted.
    49    6. Intentionally omitted.
    50    7. Intentionally omitted.
    51    8. Intentionally omitted.
    52    9. If it shall appear to the commissioner of finance that any business
    53  allocation percentage determined as hereinabove provided does not  prop-
    54  erly  reflect  the  activity,  business, income or capital of a taxpayer
    55  within the city, the commissioner of finance shall be authorized in  his
    56  or  her  discretion  to  adjust it, or the taxpayer may request that the

        S. 4610--A                         37                         A. 6721--A
 
     1  commissioner of finance adjust it, by (a) excluding one or more  of  the
     2  factors  therein,  (b)  including  one  or  more  other factors, such as
     3  expenses, purchases, contract values  (minus  subcontract  values),  (c)
     4  excluding  one  or  more assets in computing such allocation percentage,
     5  provided the income therefrom, is also excluded  in  determining  entire
     6  net  income,  or (d) any other similar or different method calculated to
     7  effect a fair and proper allocation of the income and capital reasonably
     8  attributable to the city.  The party seeking the adjustment  shall  bear
     9  the burden of proof to demonstrate that the business allocation percent-
    10  age  determined  pursuant  to  this  section does not result in a proper
    11  reflection of the taxpayer's income or capital within the city and  that
    12  the  proposed  adjustment  is appropriate.   The commissioner of finance
    13  from time to time shall publish all rulings of general  public  interest
    14  with respect to any application of the provisions of this subdivision.
    15    10. Intentionally omitted.
    16    11. Intentionally omitted.
    17    12. Intentionally omitted.
    18    13.  (a)  In  addition  to any other credit allowed by this section, a
    19  taxpayer shall be allowed a credit  against  the  tax  imposed  by  this
    20  subchapter  to  be  credited or refunded without interest, in the manner
    21  hereinafter provided in this section.
    22    (1)(i) Where a taxpayer shall  have  relocated  to  the  city  from  a
    23  location  outside the state, and by such relocation shall have created a
    24  minimum of one hundred  industrial  or  commercial  employment  opportu-
    25  nities;  and where such taxpayer shall have entered into a written lease
    26  for the relocation premises,  the  terms  of  which  lease  provide  for
    27  increased additional payments to the landlord which are based solely and
    28  directly  upon  any increase or addition in real estate taxes imposed on
    29  the leased premises, the taxpayer upon approval and certification by the
    30  industrial and commercial incentive board as hereinafter provided  shall
    31  be  entitled to a credit against the tax imposed by this subchapter. The
    32  amount of such credit shall be an amount equal to the  annual  increased
    33  payments  actually made by the taxpayer to the landlord which are solely
    34  and directly attributable to an increase or addition to the real  estate
    35  tax  imposed upon the leased premises. Such credit shall be allowed only
    36  to the extent that the taxpayer has not otherwise claimed said amount as
    37  a deduction against the tax imposed by this subchapter.
    38    (ii) The industrial and commercial incentive board  in  approving  and
    39  certifying  to  the  qualifications  of  the taxpayer to receive the tax
    40  credit provided for herein shall first determine that the applicant  has
    41  met  the requirements of this section, and further, that the granting of
    42  the tax credit to the applicant is in the "public interest".  In  deter-
    43  mining  that  the  granting of the tax credit is in the public interest,
    44  the board shall make affirmative findings that: the granting of the  tax
    45  credit  to  the  applicant  will not effect an undue hardship on similar
    46  taxpayers already located within the city; the  existence  of  this  tax
    47  incentive  has been instrumental in bringing about the relocation of the
    48  applicant to the city; and the granting of the tax  credit  will  foster
    49  the economic recovery and economic development of the city.
    50    (iii)  The tax credit, if approved and certified by the industrial and
    51  commercial incentive board, must be utilized annually  by  the  taxpayer
    52  for  the  length  of the term of the lease or for a period not to exceed
    53  ten years from the date of relocation whichever period is shorter.
    54    (2) When used in this subdivision:

        S. 4610--A                         38                         A. 6721--A
 
     1    (i) "Employment opportunity" means the creation of a full  time  posi-
     2  tion  of gainful employment for an industrial or commercial employee and
     3  the actual hiring of such employee for the said position.
     4    (ii)  "Industrial  employee"  means  one engaged in the manufacture or
     5  assembling of tangible goods or the processing of raw materials.
     6    (iii) "Commercial employee" means one engaged in the  buying,  selling
     7  or  otherwise  providing  of  goods  or  services other than on a retail
     8  basis.
     9    (iv) "Retail" means the selling or otherwise disposing  or  furnishing
    10  of tangible goods or services directly to the ultimate user or consumer.
    11    (v)  "Full time position" means the hiring of an industrial or commer-
    12  cial employee in a position of gainful employment where  the  number  of
    13  hours  worked by such employees is not less than thirty hours during any
    14  given work week.
    15    (vi) "Industrial and  commercial  incentive  board"  means  the  board
    16  created  pursuant to part three of subchapter two of chapter two of this
    17  title.
    18    (b) The credit allowed under this subdivision  for  any  taxable  year
    19  shall  be deemed to be an overpayment of tax by the taxpayer to be cred-
    20  ited or refunded, without interest, in accordance with the provisions of
    21  section 11-677 of this chapter.
    22    14. (a) In addition to any other credit allowed  by  this  section,  a
    23  taxpayer  shall  be  allowed  a  credit  against the tax imposed by this
    24  subchapter to be credited or refunded without interest,  in  the  manner
    25  hereinafter  provided  in  this section. The amount of such credit shall
    26  be:
    27    (1) A maximum of three hundred dollars for each commercial  employment
    28  opportunity  and  a  maximum of five hundred dollars for each industrial
    29  employment opportunity relocated to the city from an  area  outside  the
    30  state.  Such credit shall be allowed to a taxpayer who relocates a mini-
    31  mum of ten employment opportunities. The credit shall be allowed against
    32  employment opportunity relocation costs incurred by the  taxpayer.  Such
    33  credit  shall  be  allowed  only to the extent that the taxpayer has not
    34  claimed a deduction  for  allowable  employment  opportunity  relocation
    35  costs.  The  credit  allowed  hereunder  may be taken by the taxpayer in
    36  whole or in part in the year in  which  the  employment  opportunity  is
    37  relocated  by  such  taxpayer or either of the two years succeeding such
    38  event, provided, however, no credit shall be allowed under this subdivi-
    39  sion to a taxpayer for industrial employment opportunities relocated  to
    40  premises  (i)  that  are  within an industrial business zone established
    41  pursuant to section 22-626 of this code and (ii)  for  which  a  binding
    42  contract  to purchase or lease was first entered into by the taxpayer on
    43  or after July first, two thousand five.
    44    The commissioner of finance is empowered to promulgate rules and regu-
    45  lations and to prescribe the form of application to be used by a taxpay-
    46  er seeking the credit provided hereunder.
    47    (2) When used in this subdivision:
    48    (i) "Employment opportunity" means the creation of a full  time  posi-
    49  tion  of gainful employment for an industrial or commercial employee and
    50  the actual hiring of such employee for the said position.
    51    (ii) "Industrial employee" means one engaged  in  the  manufacture  or
    52  assembling of tangible goods or the processing of raw materials.
    53    (iii)  "Commercial  employee" means one engaged in the buying, selling
    54  or otherwise providing of goods or  services  other  than  on  a  retail
    55  basis.

        S. 4610--A                         39                         A. 6721--A
 
     1    (iv)  "Retail"  means  the  selling or otherwise disposing of tangible
     2  goods directly to the ultimate user or consumer.
     3    (v)  "Full time position" means the hiring of an industrial or commer-
     4  cial employee in a position of gainful employment where  the  number  of
     5  hours  worked  by such employee is not less than thirty hours during any
     6  given work week.
     7    (vi)  "Employment  opportunity  relocation  costs"  means  the   costs
     8  incurred  by  the taxpayer in moving furniture, files, papers and office
     9  equipment into the city from a location outside  the  state;  the  costs
    10  incurred by the taxpayer in the moving and installation of machinery and
    11  equipment  into the city from a location outside the state; the costs of
    12  installation of telephones and other communications  equipment  required
    13  as  a  result  of the relocation to the city from a location outside the
    14  state; the cost  incurred  in  the  purchase  of  office  furniture  and
    15  fixtures  required  as  a  result  of  the relocation to the city from a
    16  location outside the state; and the cost of renovation of  the  premises
    17  to  be  occupied  as a result of the relocation; provided, however, that
    18  such renovation costs shall be allowable only to the extent that they do
    19  not exceed seventy-five cents per square foot of the total area utilized
    20  by the taxpayer in the occupied premises.
    21    (b) The credit allowed under this section for any taxable  year  shall
    22  be  deemed to be an overpayment of tax by the taxpayer to be credited or
    23  refunded without interest in accordance with the provisions  of  section
    24  11-677 of this chapter.
    25    (c)  Notwithstanding  any  other  provision of this subdivision to the
    26  contrary, in the case of a taxpayer that has received, in a taxable year
    27  beginning before January first, two thousand  fifteen,  the  credit  set
    28  forth  in  subdivision fourteen of section 11-604 of this chapter for an
    29  eligible employment relocation, a credit shall be allowed to the taxpay-
    30  er under this subdivision for any tax year beginning on or after January
    31  first, two thousand fifteen, in the same amount and to the  same  extent
    32  that  a  credit,  or the unused portion thereof, would have been allowed
    33  under subdivision fourteen of section 11-604  of  this  chapter,  as  in
    34  effect on December thirty-first, two thousand fourteen, if such subdivi-
    35  sion continued to apply to the taxpayer for such taxable year.
    36    15. Intentionally omitted.
    37    16. Intentionally omitted.
    38    17.  (a)  In  addition  to any other credit allowed by this section, a
    39  taxpayer that has obtained the certifications required by chapter  six-B
    40  of  title  twenty-two of this code shall be allowed a credit against the
    41  tax imposed by this subchapter. The amount of the credit  shall  be  the
    42  amount determined by multiplying five hundred dollars or, in the case of
    43  a  taxpayer  that  has  obtained pursuant to chapter six-B of such title
    44  twenty-two a certification of eligibility dated on or after July  first,
    45  nineteen hundred ninety-five, one thousand dollars or, in the case of an
    46  eligible  business  that  has obtained pursuant to chapter six-B of such
    47  title twenty-two a certification of eligibility dated on or  after  July
    48  first, two thousand, for a relocation to eligible premises located with-
    49  in a revitalization area defined in subdivision (n) of section 22-621 of
    50  this  code,  three thousand dollars, by the number of eligible aggregate
    51  employment shares maintained by the taxpayer  during  the  taxable  year
    52  with respect to particular premises to which the taxpayer has relocated;
    53  provided, however, with respect to a relocation for which no application
    54  for  a  certificate of eligibility is submitted prior to July first, two
    55  thousand three, to eligible premises that are not within  a  revitaliza-
    56  tion  area,  if  the  date  of such relocation as determined pursuant to

        S. 4610--A                         40                         A. 6721--A
 
     1  subdivision (j) of section 22-621 of this code  is  before  July  first,
     2  nineteen  hundred ninety-five, the amount to be multiplied by the number
     3  of eligible aggregate employment shares shall be five  hundred  dollars,
     4  and  with respect to a relocation for which no application for a certif-
     5  icate of eligibility is submitted prior  to  July  first,  two  thousand
     6  three,  to  eligible  premises that are within a revitalization area, if
     7  the date of such relocation as determined pursuant to subdivision (j) of
     8  such section is before July first,  nineteen  hundred  ninety-five,  the
     9  amount  to  be multiplied by the number of eligible aggregate employment
    10  shares shall be five hundred dollars, and if the date of such relocation
    11  as determined pursuant to subdivision (j) of such section is on or after
    12  July first, nineteen hundred ninety-five, and  before  July  first,  two
    13  thousand,  one thousand dollars; provided, however, that no credit shall
    14  be allowed for the relocation of any retail activity or hotel  services;
    15  provided,  further,  that no credit shall be allowed under this subdivi-
    16  sion to any taxpayer that has elected pursuant  to  subdivision  (d)  of
    17  section 22-622 of this code to take such credit against a gross receipts
    18  tax  imposed  by  chapter eleven of this title; and provided that in the
    19  case of an eligible business that has obtained pursuant to chapter six-B
    20  of such title twenty-two certifications of eligibility for more than one
    21  relocation, the portion  of  the  total  amount  of  eligible  aggregate
    22  employment  shares  to  be  multiplied by the dollar amount specified in
    23  this subdivision for each such certification of a  relocation  shall  be
    24  the  number  of  total  attributed  eligible aggregate employment shares
    25  determined with respect to such relocation pursuant to  subdivision  (o)
    26  of  section  22-621  of this code. For purposes of this subdivision, the
    27  terms "eligible aggregate employment shares," "relocate," "retail activ-
    28  ity" and "hotel services" shall have the meanings  ascribed  by  section
    29  22-621 of this code.
    30    (b) The credit allowed under this subdivision with respect to eligible
    31  aggregate  employment shares maintained with respect to particular prem-
    32  ises to which the taxpayer has relocated shall be allowed for the  first
    33  taxable  year during which such eligible aggregate employment shares are
    34  maintained with respect to such premises  and  for  any  of  the  twelve
    35  succeeding  taxable  years  during  which  eligible aggregate employment
    36  shares are maintained with respect to such premises; provided  that  the
    37  credit  allowed  for the twelfth succeeding taxable year shall be calcu-
    38  lated by multiplying the number of eligible aggregate employment  shares
    39  maintained with respect to such premises in the twelfth succeeding taxa-
    40  ble  year  by the lesser of one and a fraction the numerator of which is
    41  such number of days in the taxable year of relocation less the number of
    42  days the eligible business maintained employment shares in the  eligible
    43  premises  in the taxable year of relocation and the denominator of which
    44  is the number of days in such twelfth  succeeding  taxable  year  during
    45  which  such  eligible  aggregate  employment  shares are maintained with
    46  respect to such premises. Except as provided in paragraph  (d)  of  this
    47  subdivision,  if  the amount of the credit allowable under this subdivi-
    48  sion for any taxable year exceeds the tax imposed  for  such  year,  the
    49  excess may be carried over, in order, to the five immediately succeeding
    50  taxable  years  and,  to  the  extent  not previously deductible, may be
    51  deducted from the taxpayer's tax for such years.
    52    (c) The credit allowable under  this  subdivision  shall  be  deducted
    53  after  the  credit  allowed by subdivision eighteen of this section, but
    54  prior to the deduction of any other credit allowed by this section.
    55    (d) In the case of a taxpayer that has  obtained  a  certification  of
    56  eligibility  pursuant  to chapter six-B of title twenty-two of this code

        S. 4610--A                         41                         A. 6721--A
 
     1  dated on or after July first, two thousand for a relocation to  eligible
     2  premises  located  within the revitalization area defined in subdivision
     3  (n) of section 22-621 of this  code,  the  credits  allowed  under  this
     4  subdivision,  or  in the case of a taxpayer that has relocated more than
     5  once, the portion of such credits attributed to  such  certification  of
     6  eligibility  pursuant  to paragraph (a) of this subdivision, against the
     7  tax imposed by this chapter for the taxable year of such relocation  and
     8  for  the  four  taxable years immediately succeeding the taxable year of
     9  such relocation, shall be deemed  to  be  overpayments  of  tax  by  the
    10  taxpayer  to  be  credited  or refunded, without interest, in accordance
    11  with the provisions of section 11-677 of this chapter. For such  taxable
    12  years,  such  credits or portions thereof may not be carried over to any
    13  succeeding taxable year; provided, however, that  this  paragraph  shall
    14  not apply to any relocation for which an application for a certification
    15  of  eligibility  was  not  submitted  prior  to July first, two thousand
    16  three, unless the date of such relocation is on or after July first, two
    17  thousand.
    18    (e) Notwithstanding any other provision of  this  subdivision  to  the
    19  contrary, in the case of a taxpayer that has obtained, pursuant to chap-
    20  ter six-B of title twenty-two of this code, a certification of eligibil-
    21  ity  and has received, in a taxable year beginning before January first,
    22  two thousand fifteen, the credit set forth in subdivision  seventeen  of
    23  section  11-604  of this chapter or section 11-643.7 of this chapter for
    24  the relocation of an eligible business, a credit shall be allowed  under
    25  this  subdivision  to  the taxpayer for any taxable year beginning on or
    26  after January first, two thousand fifteen in the same amount and to  the
    27  same  extent  that  a  credit  would have been allowed under subdivision
    28  seventeen of section 11-604 of this chapter or section 11-643.7 of  this
    29  chapter,  as  in effect on December thirty-first, two thousand fourteen,
    30  if such subdivision continued to apply to the taxpayer for such  taxable
    31  year.
    32    17-a. Intentionally omitted.
    33    17-b.  (a) In addition to any other credit allowed by this section, an
    34  eligible business that first enters into a binding contract on or  after
    35  July  first, two thousand five to purchase or lease eligible premises to
    36  which it relocates shall be allowed a one-time credit  against  the  tax
    37  imposed  by  this  subchapter  to  be credited or refunded in the manner
    38  hereinafter provided in this subdivision.  The  amount  of  such  credit
    39  shall be one thousand dollars per full-time employee; provided, however,
    40  that  the  amount  of  such credit shall not exceed the lesser of actual
    41  relocation costs or one hundred thousand dollars.
    42    (b) When used in this subdivision, the following terms shall have  the
    43  following meanings:
    44    (1)  "Eligible  business" means any business subject to tax under this
    45  subchapter that (i) has been conducting substantial business  operations
    46  and engaging primarily in industrial and manufacturing activities at one
    47  or  more  locations  within the city of New York or outside the state of
    48  New York continuously during the  twenty-four  consecutive  full  months
    49  immediately  preceding  relocation,  (ii)  has  leased the premises from
    50  which it relocates continuously during the twenty-four consecutive  full
    51  months immediately preceding relocation, (iii) first enters into a bind-
    52  ing  contract  on  or after July first, two thousand five to purchase or
    53  lease eligible premises to which such business will relocate,  and  (iv)
    54  will  be engaged primarily in industrial and manufacturing activities at
    55  such eligible premises.

        S. 4610--A                         42                         A. 6721--A
 
     1    (2) "Eligible premises" means  premises  located  entirely  within  an
     2  industrial business zone. For any eligible business, an industrial busi-
     3  ness  zone tax credit shall not be granted with respect to more than one
     4  eligible premises.
     5    (3) "Full-time employee" means (i) one person gainfully employed in an
     6  eligible  premises  by  an  eligible  business where the number of hours
     7  required to be worked by such person is not less than thirty-five  hours
     8  per week; or (ii) two persons gainfully employed in an eligible premises
     9  by  an eligible business where the number of hours required to be worked
    10  by each such person is more than fifteen hours per week  but  less  than
    11  thirty-five hours per week.
    12    (4)  "Industrial  business  zone" means an area within the city of New
    13  York established pursuant to section 22-626 of this code.
    14    (5) "Industrial business zone tax credit" means a credit, as  provided
    15  for in this subdivision, against a tax imposed under this subchapter.
    16    (6) "Industrial and manufacturing activities" means activities involv-
    17  ing the assembly of goods to create a different article, or the process-
    18  ing,  fabrication,  or packaging of goods.  Industrial and manufacturing
    19  activities shall not include waste management or utility services.
    20    (7) "Relocation" means the physical relocation of furniture, fixtures,
    21  equipment, machinery and supplies directly to an eligible premises, from
    22  one or more locations of an eligible business, including  at  least  one
    23  location at which such business conducts substantial business operations
    24  and  engages  primarily  in industrial and manufacturing activities. For
    25  purposes of this subdivision, the date of relocation shall  be  (i)  the
    26  date  of  the  completion  of the relocation to the eligible premises or
    27  (ii) ninety days from the commencement of the relocation to the eligible
    28  premises, whichever is earlier.
    29    (8) "Relocation costs" means costs incurred in the relocation of  such
    30  furniture,  fixtures,  equipment, machinery and supplies, including, but
    31  not limited to, the cost of dismantling and reassembling  equipment  and
    32  the cost of floor preparation necessary for the reassembly of the equip-
    33  ment.  Relocation  costs shall include only such costs that are incurred
    34  during the ninety-day period immediately following the  commencement  of
    35  the  relocation  to  an  eligible  premises.  Relocation costs shall not
    36  include costs for structural or capital improvements or items  purchased
    37  in connection with the relocation.
    38    (c)  The  credit  allowed  under this subdivision for any taxable year
    39  shall be deemed to be an overpayment of tax by the taxpayer to be  cred-
    40  ited  or refunded without interest, in accordance with the provisions of
    41  section 11-677 of this chapter.
    42    (d) The number of full-time employees for the purposes of  calculating
    43  an  industrial  business tax credit shall be the average number of full-
    44  time employees, calculated on a weekly basis, employed in  the  eligible
    45  premises  by  the  eligible  business in the fifty-two week period imme-
    46  diately following the earlier of (1) the date of the completion  of  the
    47  relocation to eligible premises or (2) ninety days from the commencement
    48  of the relocation to the eligible premises.
    49    (e)  The  credit  allowed  under this subdivision must be taken by the
    50  taxpayer in the taxable year in which such twelve month period  selected
    51  by the taxpayer ends.
    52    (f)  For  the purposes of calculating entire net income in the taxable
    53  year that an industrial business tax credit is allowed, a taxpayer  must
    54  add back the amount of the credit allowed under this subdivision, to the
    55  extent of any relocation costs deducted in the current taxable year or a
    56  prior taxable year in calculating federal taxable income.

        S. 4610--A                         43                         A. 6721--A
 
     1    (g) The credit allowed under this subdivision shall not be granted for
     2  an  eligible  business for more than one relocation. Notwithstanding the
     3  foregoing, an industrial business tax credit shall not be granted if the
     4  eligible business receives benefits pursuant to chapter six-B  or  six-C
     5  of  title  twenty-two of this code, through a grant program administered
     6  by the business relocation assistance corporation, or  through  the  New
     7  York city printers relocation fund grant.
     8    (h)  The commissioner of finance is authorized to promulgate rules and
     9  regulations and to prescribe forms necessary to effectuate the  purposes
    10  of this subdivision.
    11    18.  (a)  If  a corporation is a partner in an unincorporated business
    12  taxable under chapter five of this title, and is required to include  in
    13  entire  net  income  its  distributive  share  of income, gain, loss and
    14  deductions of, or guaranteed payments from,  such  unincorporated  busi-
    15  ness, such corporation shall be allowed a credit against the tax imposed
    16  by  this  subchapter  equal  to  the lesser of the amounts determined in
    17  subparagraphs one and two of this paragraph:
    18    (1) The amount determined in this subparagraph is the product  of  (i)
    19  the  sum  of  (A)  the  tax imposed by chapter five of this title on the
    20  unincorporated business for its taxable year ending within or  with  the
    21  taxable  year of the corporation and paid by the unincorporated business
    22  and (B) the amount of any credit or credits taken by the  unincorporated
    23  business  under  section 11-503 of this title (except the credit allowed
    24  by subdivision (b) of section 11-503 of this title) for its taxable year
    25  ending within or with the taxable year of the corporation, to the extent
    26  that such credits do not reduce such unincorporated business's tax below
    27  zero, and (ii) a fraction, the numerator of which is the  net  total  of
    28  the   corporation's   distributive  share  of  income,  gain,  loss  and
    29  deductions of, and guaranteed payments from, the unincorporated business
    30  for such taxable year, and the denominator of which is the sum, for such
    31  taxable year, of the net total distributive shares of income, gain, loss
    32  and deductions of, and guaranteed payments to, all partners in the unin-
    33  corporated business for whom or which  such  net  total  (as  separately
    34  determined for each partner) is greater than zero.
    35    (2)  The  amount determined in this subparagraph is the product of (i)
    36  the excess of (A) the tax computed under clause (i) of subparagraph  one
    37  of  paragraph  (e) of subdivision one of this section, without allowance
    38  of any credits allowed by this section, over (B) the  tax  so  computed,
    39  determined as if the corporation had no such distributive share or guar-
    40  anteed  payments with respect to the unincorporated business, and (ii) a
    41  fraction, the numerator of which is four and the denominator of which is
    42  eight and eighty-five one hundredths, provided however, in the case of a
    43  taxpayer that is subject to paragraph (j) or (k) of subdivision  one  of
    44  this section, such denominator shall be the rate of tax as determined by
    45  such  paragraph  (j) or (k) for the taxable year and, provided, however,
    46  that the amounts computed in subclauses (A) and (B)  of  clause  (i)  of
    47  this subparagraph shall be computed with the following modifications:
    48    (A)  such  amounts  shall  be computed without taking into account any
    49  carryforward or carryback by the partner of a net operating  loss  or  a
    50  prior net operation loss conversion subtraction;
    51    (B) if, prior to taking into account any distributive share or guaran-
    52  teed payments from any unincorporated business or any net operating loss
    53  carryforward  or carryback, the entire net income of the partner is less
    54  than zero, such entire net income shall be treated as zero; and
    55    (C) if such partner's net total distributive share  of  income,  gain,
    56  loss and deductions of, and guaranteed payments from, any unincorporated

        S. 4610--A                         44                         A. 6721--A
 
     1  business is less than zero, such net total shall be treated as zero. The
     2  amount determined in this subparagraph shall not be less than zero.
     3    (b)(1)  Notwithstanding  anything  to the contrary in paragraph (a) of
     4  this subdivision, in the case of a corporation that, before the applica-
     5  tion of this subdivision or any other credit allowed by this section, is
     6  liable for the tax on business income under clause (i)  of  subparagraph
     7  one  of  paragraph (e) of subdivision one of this section, the credit or
     8  the sum of the credits that may be taken by such corporation for a taxa-
     9  ble year under this subdivision with respect to an unincorporated  busi-
    10  ness  or  unincorporated  businesses  in which it is a partner shall not
    11  exceed the tax so computed, without allowance of any credits allowed  by
    12  this  section,  multiplied  by a fraction the numerator of which is four
    13  and the denominator of which is  eight  and  eighty-five  one-hundredths
    14  provided,  however,  in  the case of a taxpayer that is subject to para-
    15  graph (j) or (k) of subdivision one of this  section,  such  denominator
    16  shall  be the rate of tax as determined by such paragraph (j) or (k) for
    17  the taxable year. If the credit allowed under this  subdivision  or  the
    18  sum  of  such credits exceeds the product of such tax and such fraction,
    19  the amount of the excess may be carried forward, in order,  to  each  of
    20  the  seven  immediately  succeeding taxable years and, to the extent not
    21  previously taken, shall be allowed as a credit in each of such years. In
    22  applying the provisions of the preceding sentence, the credit determined
    23  for the taxable year under paragraph (a) of this  subdivision  shall  be
    24  taken  before  taking any credit carryforward pursuant to this paragraph
    25  and the credit carryforward attributable to the  earliest  taxable  year
    26  shall  be  taken  before  taking a credit carryforward attributable to a
    27  subsequent taxable year.
    28    (2) Intentionally omitted.
    29    (2-a) Notwithstanding any other provision of this subdivision  to  the
    30  contrary, in the case of a taxpayer that has received, in a taxable year
    31  beginning  before  January  first,  two thousand fifteen, the credit set
    32  forth in subdivision eighteen of section 11-604 of this  chapter  or  in
    33  section  11-643.8  of  this chapter for a tax paid under chapter five of
    34  this title in a taxable year beginning before January first,  two  thou-
    35  sand  fifteen, the taxpayer may carry forward the unused portion of such
    36  credit under this subdivision to any taxable year beginning on or  after
    37  January  first,  two thousand fifteen in the same amount and to the same
    38  extent, including the same limitations, that the credit, or  the  unused
    39  portion  thereof,  would  have  been allowed to be carried forward under
    40  subparagraph one of paragraph (b) of  subdivision  eighteen  of  section
    41  11-604  of  this  chapter or paragraph one of subdivision (b) of section
    42  11-643.8 of this chapter, as in effect  on  December  thirty-first,  two
    43  thousand fourteen, if such subdivision continued to apply to the taxpay-
    44  er for such taxable year.
    45    (3) No credit allowed under this subdivision may be taken in a taxable
    46  year  by a taxpayer that, in the absence of such credit, would be liable
    47  for the tax computed on the basis of business capital under clause  (ii)
    48  of  subparagraph one of paragraph (e) of subdivision one of this section
    49  or the fixed-dollar minimum tax under clause (iv) of subparagraph one of
    50  paragraph (e) of subdivision one of this section.
    51    (c) For corporations that file a report on a combined  basis  pursuant
    52  to  section  11-654.3  of  this  subchapter,  the credit allowed by this
    53  subdivision shall be computed as if the combined group were the  partner
    54  in  each  unincorporated  business from which any of the members of such
    55  group had a distributive share or guaranteed payments, provided,  howev-
    56  er,  if  more  than one member of the combined group is a partner in the

        S. 4610--A                         45                         A. 6721--A
 
     1  same unincorporated business, for purposes of the  calculation  required
     2  in  subparagraph one of paragraph (a) of this subdivision, the numerator
     3  of the fraction described in clause (ii) of such subparagraph one  shall
     4  be  the  sum  of the net total distributive shares of income, gain, loss
     5  and deductions of, and  guaranteed  payments  from,  the  unincorporated
     6  business  of  all  of the partners of the unincorporated business within
     7  the combined group for which such net total  (as  separately  determined
     8  for  each  partner)  is  greater  than zero, and the denominator of such
     9  fraction shall be the sum  of  the  net  total  distributive  shares  of
    10  income,  gain, loss and deductions of, and guaranteed payments from, the
    11  unincorporated business of all partners in the  unincorporated  business
    12  for  whom  or  which  such  net total (as separately determined for each
    13  partner) is greater than zero.
    14    (d) Notwithstanding any other provision of this subchapter, the credit
    15  allowable under this subdivision shall be taken prior to the  taking  of
    16  any  other  credit  allowed  by  this section. Notwithstanding any other
    17  provision of this subchapter, the application of this subdivision  shall
    18  not change the basis on which the taxpayer's tax is computed under para-
    19  graph (e) of subdivision one of this section.
    20    19.  Lower  Manhattan relocation and employment assistance credit. (a)
    21  In addition to any other credit allowed by this section, a taxpayer that
    22  has obtained the certifications required by chapter six-C of title twen-
    23  ty-two of this code shall be allowed a credit against the tax imposed by
    24  this subchapter. The amount of the credit shall be the amount determined
    25  by multiplying three thousand dollars by the number of  eligible  aggre-
    26  gate  employment  shares  maintained  by the taxpayer during the taxable
    27  year with respect to eligible premises to which the taxpayer  has  relo-
    28  cated;  provided, however, that no credit shall be allowed for the relo-
    29  cation of any retail activity or hotel services; provided, further, that
    30  no credit shall be allowed under this subdivision to any  taxpayer  that
    31  has  elected  pursuant to subdivision (d) of section 22-624 of this code
    32  to take such credit against a gross receipts tax imposed  under  chapter
    33  eleven  of  this  title.  For  purposes  of  this subdivision, the terms
    34  "eligible aggregate employment shares," "eligible premises," "relocate,"
    35  "retail activity" and "hotel services" shall have the meanings  ascribed
    36  by section 22-623 of this code.
    37    (b) The credit allowed under this subdivision with respect to eligible
    38  aggregate employment shares maintained with respect to eligible premises
    39  to  which  the  taxpayer  has relocated shall be allowed for the taxable
    40  year of the relocation and for any  of  the  twelve  succeeding  taxable
    41  years  during  which eligible aggregate employment shares are maintained
    42  with respect to eligible premises; provided that the credit allowed  for
    43  the  twelfth  succeeding taxable year shall be calculated by multiplying
    44  the number of  eligible  aggregate  employment  shares  maintained  with
    45  respect  to  eligible premises in the twelfth succeeding taxable year by
    46  the lesser of one and a fraction the numerator of which is  such  number
    47  of  days  in  the taxable year of relocation less the number of days the
    48  taxpayer maintained employment shares in eligible premises in the  taxa-
    49  ble  year  of  relocation  and the denominator of which is the number of
    50  days in such twelfth taxable year during which such  eligible  aggregate
    51  employment shares are maintained with respect to such premises.
    52    (c)  Except  as  provided in paragraph (d) of this subdivision, if the
    53  amount of the credit allowable under this subdivision  for  any  taxable
    54  year  exceeds  the  tax imposed for such year, the excess may be carried
    55  over, in order, to the five immediately succeeding taxable years and, to

        S. 4610--A                         46                         A. 6721--A
 
     1  the extent not previously deductible, may be deducted from  the  taxpay-
     2  er's tax for such years.
     3    (d)  The  credits  allowed  under  this  subdivision,  against the tax
     4  imposed by this chapter for the taxable year of the relocation  and  for
     5  the  four  taxable years immediately succeeding the taxable year of such
     6  relocation, shall be deemed to be overpayments of tax by the taxpayer to
     7  be credited or  refunded,  without  interest,  in  accordance  with  the
     8  provisions  of  section  11-677 of this chapter. For such taxable years,
     9  such credits or portions thereof may not be carried over to any succeed-
    10  ing taxable year.
    11    (e) The credit allowable under  this  subdivision  shall  be  deducted
    12  after the credits allowed by subdivisions seventeen and eighteen of this
    13  section,  but prior to the deduction of any other credit allowed by this
    14  section.
    15    (f) Notwithstanding any other provision of  this  subdivision  to  the
    16  contrary, in the case of a taxpayer that has obtained, pursuant to chap-
    17  ter six-C of title twenty-two of this code, a certification of eligibil-
    18  ity  and has received, in a taxable year beginning before January first,
    19  two thousand fifteen, the credit set forth in  subdivision  nineteen  of
    20  section  11-604  of this chapter or section 11-643.9 of this chapter for
    21  the relocation of an eligible business, a credit shall be allowed  under
    22  this  subdivision  to  the taxpayer for any taxable year beginning on or
    23  after January first, two thousand fifteen in the same amount and to  the
    24  same  extent  that  a  credit  would have been allowed under subdivision
    25  nineteen of section 11-604 of this chapter or section 11-643.9  of  this
    26  chapter,  as  in effect on December thirty-first, two thousand fourteen,
    27  if such subdivision continued to apply to the taxpayer for such  taxable
    28  year.
    29    20. Intentionally omitted.
    30    21.  Biotechnology  credit.  (a)  (1)  A  taxpayer that is a qualified
    31  emerging technology company, engages in biotechnologies, and  meets  the
    32  eligibility  requirements of this subdivision, shall be allowed a credit
    33  against the tax imposed by this subchapter. The amount of  credit  shall
    34  be  equal  to  the  sum of the amounts specified in subparagraphs three,
    35  four and five of this paragraph, subject to the limitations in  subpara-
    36  graph seven of this paragraph and paragraph (b) of this subdivision. For
    37  the  purposes of this subdivision, "qualified emerging technology compa-
    38  ny" shall mean a company located in the city: (i) whose primary products
    39  or services are classified as  emerging  technologies  and  whose  total
    40  annual  product sales are ten million dollars or less; or (ii) a company
    41  that has research and development activities in the city and whose ratio
    42  of research and development funds to net sales  equals  or  exceeds  the
    43  average ratio for all surveyed companies classified as determined by the
    44  National  Science  Foundation  in the most recent published results from
    45  its Survey of Industry  Research  and  Development,  or  any  comparable
    46  successor  survey  as determined by the department of finance, and whose
    47  total annual product sales are ten million  dollars  or  less.  For  the
    48  purposes of this subdivision, the definition of research and development
    49  funds  shall be the same as that used by the National Science Foundation
    50  in the aforementioned survey. For  the  purposes  of  this  subdivision,
    51  "biotechnologies"  shall  mean the technologies involving the scientific
    52  manipulation of living organisms, especially at the molecular and/or the
    53  sub-molecular genetic level, to produce products conducive to  improving
    54  the  lives and health of plants, animals, and humans; and the associated
    55  scientific  research,  pharmacological,  mechanical,  and  computational
    56  applications  and services connected with these improvements. Activities

        S. 4610--A                         47                         A. 6721--A
 
     1  included with such applications and services shall include, but  not  be
     2  limited to, alternative mRNA splicing, DNA sequence amplification, anti-
     3  genetic  switching bioaugmentation, bioenrichment, bioremediation, chro-
     4  mosome  walking, cytogenetic engineering, DNA diagnosis, fingerprinting,
     5  and sequencing, electroporation, gene  translocation,  genetic  mapping,
     6  site-directed  mutagenesis,  bio-transduction, bio-mechanical and bio-e-
     7  lectrical engineering, and bio-informatics.
     8    (2) An eligible taxpayer shall (i) have no more than one hundred full-
     9  time employees, of which at least seventy-five percent are  employed  in
    10  the  city,  (ii)  have  a ratio of research and development funds to net
    11  sales, as referred to in section thirty-one hundred two-e of the  public
    12  authorities law, which equals or exceeds six percent during the calendar
    13  year  ending  with  or  within  the taxable year for which the credit is
    14  claimed, and (iii) have gross revenues, along with the gross revenues of
    15  its "affiliates" and "related  members"  not  exceeding  twenty  million
    16  dollars  for  the  calendar year immediately preceding the calendar year
    17  ending with or within the taxable year for which the credit is  claimed.
    18  For  the  purposes  of  this  subdivision, "affiliates" shall mean those
    19  corporations that are members of the same affiliated group  (as  defined
    20  in  section  fifteen  hundred  four of the internal revenue code) as the
    21  taxpayer. For the  purposes  of  this  subdivision,  the  term  "related
    22  members" shall mean a person, corporation, or other entity, including an
    23  entity  that  is  treated as a partnership or other pass-through vehicle
    24  for purposes of federal taxation, whether such  person,  corporation  or
    25  entity is a taxpayer or not, where one such person, corporation or enti-
    26  ty,  or  set  of  related persons, corporations or entities, directly or
    27  indirectly owns or controls a controlling interest  in  another  entity.
    28  Such  entity  or entities may include all taxpayers under chapters five,
    29  eleven and seventeen of this title, and this subchapter and  subchapters
    30  two and three of this chapter. A controlling interest shall mean, in the
    31  case  of  a  corporation,  either  thirty  percent  or more of the total
    32  combined voting power of all classes of stock of  such  corporation,  or
    33  thirty percent or more of the capital, profits or beneficial interest in
    34  such voting stock of such corporation; and in the case of a partnership,
    35  association,  trust or other entity, thirty percent or more of the capi-
    36  tal, profits or beneficial interest in  such  partnership,  association,
    37  trust or other entity.
    38    (3)  An  eligible  taxpayer shall be allowed a credit for eighteen per
    39  centum of the cost or other basis for federal  income  tax  purposes  of
    40  research  and  development  property that is acquired by the taxpayer by
    41  purchase as defined in subsection (d) of section  one  hundred  seventy-
    42  nine  of  the  internal  revenue  code  and placed in service during the
    43  calendar year that ends with or within the taxable year  for  which  the
    44  credit  is  claimed.   Provided, however, for the purposes of this para-
    45  graph only, an eligible taxpayer shall be  allowed  a  credit  for  such
    46  percentage  of  the  (i)  cost  or  other  basis  for federal income tax
    47  purposes for property used in the testing or inspection of materials and
    48  products, (ii) the costs or expenses associated with quality control  of
    49  the  research and development, (iii) fees for use of sophisticated tech-
    50  nology facilities and processes, and (iv) fees  for  the  production  or
    51  eventual  commercial  distribution  of  materials and products resulting
    52  from the activities of an eligible taxpayer as long as  such  activities
    53  fall  under  activities relating to biotechnologies. The costs, expenses
    54  and other amounts for which a credit is allowed and claimed  under  this
    55  paragraph  shall  not  be  used  in  the calculation of any other credit
    56  allowed under this subchapter. For the  purposes  of  this  subdivision,

        S. 4610--A                         48                         A. 6721--A
 
     1  "research and development property" shall mean property that is used for
     2  purposes  of  research and development in the experimental or laboratory
     3  sense. Such purposes shall not be deemed to include the ordinary testing
     4  or  inspection  of materials or products for quality control, efficiency
     5  surveys, management studies, consumer surveys, advertising,  promotions,
     6  or research in connection with literary, historical or similar projects.
     7    (4) An eligible taxpayer shall be allowed a credit for nine per centum
     8  of  qualified  research expenses paid or incurred by the taxpayer in the
     9  calendar year that ends with or within the taxable year  for  which  the
    10  credit  is  claimed.  For  the  purposes of this subdivision, "qualified
    11  research expenses" shall mean expenses associated with in-house research
    12  and processes, and  costs  associated  with  the  dissemination  of  the
    13  results  of  the  products  that  directly result from such research and
    14  development activities; provided, however, that  such  costs  shall  not
    15  include advertising or promotion through media. In addition, costs asso-
    16  ciated  with  the preparation of patent applications, patent application
    17  filing fees, patent research fees, patent examinations fees, patent post
    18  allowance fees, patent maintenance fees, and grant application  expenses
    19  and  fees shall qualify as qualified research expenses. In no case shall
    20  the credit allowed under this subparagraph apply to expenses  for  liti-
    21  gation  or  the  challenge  of  another  entity's  intellectual property
    22  rights, or for contract expenses involving outside paid consultants.
    23    (5) An eligible taxpayer shall be allowed a credit for qualified high-
    24  technology training expenditures as described in this subparagraph  paid
    25  or  incurred  by the taxpayer during the calendar year that ends with or
    26  within the taxable year for which the credit is claimed.
    27    (i) The amount of credit shall be one hundred percent of the  training
    28  expenses  described  in  clause (iii) of this subparagraph, subject to a
    29  limitation of no more than four thousand dollars per employee per calen-
    30  dar year for such training expenses.
    31    (ii) Qualified high-technology training  shall  include  a  course  or
    32  courses taken and satisfactorily completed by an employee of the taxpay-
    33  er at an accredited, degree granting post-secondary college or universi-
    34  ty  in  the  city that (A) directly relates to biotechnology activities,
    35  and (B) is intended to upgrade, retrain or improve the  productivity  or
    36  theoretical  awareness  of  the  employee.  Such  course  or courses may
    37  include, but are not limited to, instruction  or  research  relating  to
    38  techniques,  meta,  macro,  or  micro-theoretical or practical knowledge
    39  bases or frontiers, or ethical concerns related to such activities. Such
    40  course or courses shall  not  include  classes  in  the  disciplines  of
    41  management,  accounting  or the law or any class designed to fulfill the
    42  discipline specific requirements of a degree program at  the  associate,
    43  baccalaureate,  graduate  or  professional  level  of these disciplines.
    44  Satisfactory completion of a course or courses shall  mean  the  earning
    45  and  granting  of  credit  or  equivalent unit, with the attainment of a
    46  grade of "B" or higher in a graduate level course or courses, a grade of
    47  "C" or higher in an undergraduate level course or courses, or a  similar
    48  measure  of  competency for a course that is not measured according to a
    49  standard grade formula.
    50    (iii) Qualified high-technology training  expenditures  shall  include
    51  expenses for tuition and mandatory fees, software required by the insti-
    52  tution,  fees for textbooks or other literature required by the institu-
    53  tion offering the course or courses, minus applicable  scholarships  and
    54  tuition  or fee waivers not granted by the taxpayer or any affiliates of
    55  the taxpayer, that are paid or reimbursed  by  the  taxpayer.  Qualified
    56  high-technology  expenditures  do  not  include room and board, computer

        S. 4610--A                         49                         A. 6721--A
 
     1  hardware or software not specifically assigned for such course or cours-
     2  es, late-charges, fines or membership dues and  similar  expenses.  Such
     3  qualified  expenditures shall not be eligible for the credit provided by
     4  this section unless the employee for whom the expenditures are disbursed
     5  is continuously employed by the taxpayer in a full-time, full-year posi-
     6  tion  primarily  located  at  a qualified site during the period of such
     7  coursework and lasting through at least one hundred  eighty  days  after
     8  the  satisfactory  completion  of  the qualifying course-work. Qualified
     9  high-technology training expenditures shall  not  include  expenses  for
    10  in-house  or shared training outside of a city higher education institu-
    11  tion or the use of  consultants  outside  of  credit  granting  courses,
    12  whether such consultants function inside of such higher education insti-
    13  tution or not.
    14    (iv)  If  a  taxpayer  relocates  from  an academic business incubator
    15  facility partnered with an accredited post-secondary education  institu-
    16  tion  located within the city, which provides space and business support
    17  services to taxpayers, to another site,  the  credit  provided  in  this
    18  subdivision  shall  be allowed for all expenditures referenced in clause
    19  (iii) of this subparagraph paid or incurred in the two preceding  calen-
    20  dar  years  that  the taxpayer was located in such an incubator facility
    21  for employees of the taxpayer who  also  relocate  from  said  incubator
    22  facility to such city site and are employed and primarily located by the
    23  taxpayer  in  the  city.    Such expenditures in the two preceding years
    24  shall be added to  the  amounts  otherwise  qualifying  for  the  credit
    25  provided  by this subdivision that were paid or incurred in the calendar
    26  year that the taxpayer relocates from such a facility. Such expenditures
    27  shall include expenses paid for an eligible employee who is a full-time,
    28  full-year employee of said taxpayer during the calendar  year  that  the
    29  taxpayer  relocated  from an incubator facility notwithstanding (A) that
    30  such employee was employed full or part-time as an officer, staff-person
    31  or paid intern of the taxpayer when such taxpayer was  located  at  such
    32  incubator  facility  or  (B)  that  such  employee  was not continuously
    33  employed when such taxpayer was located at the incubator facility during
    34  the one hundred eighty day period referred to in clause  (iii)  of  this
    35  subparagraph, provided such employee received wages or equivalent income
    36  for  at  least  seven  hundred  fifty hours during any twenty-four month
    37  period when the taxpayer was located at  the  incubator  facility.  Such
    38  expenditures  shall  include  payments  made  to such employee after the
    39  taxpayer has relocated from the incubator facility for qualified expend-
    40  itures if such payments are made to reimburse an employee  for  expendi-
    41  tures  paid  by the employee during such two preceding years. The credit
    42  provided under this paragraph shall be allowed in any taxable year  that
    43  the taxpayer qualifies as an eligible taxpayer.
    44    (v)  For  purposes  of this subdivision the term "academic year" shall
    45  mean the annual period  of  sessions  of  a  post-secondary  college  or
    46  university.
    47    (vi) For the purposes of this subdivision the term "academic incubator
    48  facility"  shall  mean  a  facility  providing low-cost space, technical
    49  assistance, support services and  educational  opportunities,  including
    50  but  not  limited  to  central  services  provided by the manager of the
    51  facility to the tenants of the facility, to an  entity  located  in  the
    52  city.  Such  entity's  primary  activity must be in biotechnologies, and
    53  such entity must be in the formative stage of development. The  academic
    54  incubator  facility  and  the  entity  must  act  in partnership with an
    55  accredited post-secondary college or university located in the city.  An
    56  academic  incubator facility's mission shall be to promote job creation,

        S. 4610--A                         50                         A. 6721--A
 
     1  entrepreneurship, technology transfer, and provide support  services  to
     2  incubator  tenants,  including,  but  not limited to, business planning,
     3  management  assistance,  financial-packaging,  linkages   to   financing
     4  services, and coordinating with other sources of assistance.
     5    (6)  An eligible taxpayer may claim credits under this subdivision for
     6  three consecutive years. In no case shall the  credit  allowed  by  this
     7  subdivision  to a taxpayer exceed two hundred fifty thousand dollars per
     8  calendar year for eligible expenditures made during such calendar year.
     9    (7) The credit allowed under this subdivision  for  any  taxable  year
    10  shall  not  reduce  the  tax  due  for such year to less than the amount
    11  prescribed in clause (iv) of subparagraph one of paragraph (e) of subdi-
    12  vision one of this section. Provided, however, if the amount  of  credit
    13  allowed  under  this subdivision for any taxable year reduces the tax to
    14  such amount, any amount of credit not deductible in  such  taxable  year
    15  shall  be treated as an overpayment of tax to be credited or refunded in
    16  accordance with the  provisions  of  section  11-677  of  this  chapter;
    17  provided, however, that notwithstanding the provisions of section 11-679
    18  of this chapter, no interest shall be paid thereon.
    19    (8)  The  credit  allowed under this subdivision shall only be allowed
    20  for taxable years beginning before January first, two thousand sixteen.
    21    (b) (1) The percentage of the credit allowed to a taxpayer under  this
    22  subdivision in any calendar year shall be:
    23    (i)  If  the  average  number  of  individuals employed full time by a
    24  taxpayer in the city during the calendar year that ends with  or  within
    25  the taxable year for which the credit is claimed is at least one hundred
    26  five  percent  of  the  taxpayer's  base  year  employment,  one hundred
    27  percent, except that in no case shall  the  credit  allowed  under  this
    28  clause  exceed  two  hundred  fifty  thousand dollars per calendar year.
    29  Provided, however, the increase in base year employment shall not  apply
    30  to  a  taxpayer  allowed  a  credit under this subdivision that was, (A)
    31  located outside of the city, (B) not doing business, or (C) did not have
    32  any employees, in the year preceding the first year that the  credit  is
    33  claimed.  Any such taxpayer shall be eligible for one hundred percent of
    34  the credit for the first calendar year that  ends  with  or  within  the
    35  taxable year for which the credit is claimed, provided that such taxpay-
    36  er  locates  in  the  city,  begins  doing business in the city or hires
    37  employees in the city during such calendar year and is otherwise  eligi-
    38  ble for the credit pursuant to the provisions of this subdivision.
    39    (ii)  If  the  average  number  of individuals employed full time by a
    40  taxpayer in the city during the calendar year that ends with  or  within
    41  the  taxable  year  for  which  the  credit  is claimed is less than one
    42  hundred five percent of  the  taxpayer's  base  year  employment,  fifty
    43  percent,  except  that  in  no  case shall the credit allowed under this
    44  clause exceed one hundred  twenty-five  thousand  dollars  per  calendar
    45  year.  In  the case of an entity located in the city receiving space and
    46  business support services by an  academic  incubator  facility,  if  the
    47  average  number  of individuals employed full time by such entity in the
    48  city during the calendar year in which the  credit  allowed  under  this
    49  subdivision  is  claimed  is  less  than one hundred five percent of the
    50  taxpayer's base year employment, the credit shall be zero.
    51    (2) For the purposes of this subdivision, "base year employment" means
    52  the average number of individuals employed full-time by the taxpayer  in
    53  the city in the year preceding the first calendar year that ends with or
    54  within the taxable year for which the credit is claimed.
    55    (3)  For  the purposes of this subdivision, average number of individ-
    56  uals employed full-time shall be computed by adding the number  of  such

        S. 4610--A                         51                         A. 6721--A
 
     1  individuals  employed  by the taxpayer at the end of each quarter during
     2  each calendar year or other applicable period and dividing  the  sum  so
     3  obtained  by  the number of such quarters occurring within such calendar
     4  year or other applicable period.
     5    (4)  Notwithstanding anything contained in this section to the contra-
     6  ry, the credit provided by this subdivision shall be allowed against the
     7  taxes authorized by this chapter for the taxable year after reduction by
     8  all other credits permitted by this chapter.
     9    (c) Notwithstanding any other provision of  this  subdivision  to  the
    10  contrary, in the case of a taxpayer that has received, in a taxable year
    11  beginning  before  January  first,  two thousand fifteen, the credit set
    12  forth in subdivision twenty-one of section 11-604 of this chapter for an
    13  eligible acquisition of property and/or  expense  paid  or  incurred,  a
    14  credit  shall  be allowed to the taxpayer under this subdivision for any
    15  tax year beginning on or after January first, two  thousand  fifteen  in
    16  the  same  amount  and  to the same extent that a credit would have been
    17  allowed under subdivision twenty-one of section 11-604 of this  chapter,
    18  as  in  effect  on December thirty-first, two thousand fourteen, if such
    19  subdivision continued to apply to the taxpayer for such taxable year.
    20    § 11-654.1 Net operating loss. 1. In  computing  the  business  income
    21  subject  to  tax,  taxpayers shall be allowed both a prior net operating
    22  loss conversion subtraction under subdivision two of this section and  a
    23  net  operating  loss  deduction under subdivision three of this section.
    24  The prior net  operating  loss  conversion  subtraction  computed  under
    25  subdivision two of this section shall be applied against business income
    26  before the net operating loss deduction computed under subdivision three
    27  of this section.
    28    2.  Prior net operating loss conversion subtraction.  (a) Definitions.
    29  (1) "Base year" means the last taxable year beginning on or after  Janu-
    30  ary  first, two thousand fourteen and before January first, two thousand
    31  fifteen.
    32    (2) "Unabsorbed net operating loss" means the  unabsorbed  portion  of
    33  net  operating  loss  as  calculated  under paragraph (f) of subdivision
    34  eight of section 11-602 of this chapter or subdivision (k-1) of  section
    35  11-641  of  this  chapter,  as  such sections were in effect on December
    36  thirty-first, two thousand fourteen, that was not deductible in previous
    37  taxable years and was eligible for carryover on the last day of the base
    38  year subject to the  limitations  for  deduction  under  such  sections,
    39  including  any  net  operating loss sustained by the taxpayer during the
    40  base year.
    41    (3) "Base year BAP" means the taxpayer's business allocation  percent-
    42  age  as  calculated  under paragraph (a) of subdivision three of section
    43  11-604 of this chapter for the base year, or the  taxpayer's  allocation
    44  percentage  as  calculated  under  section  11-642  of  this chapter for
    45  purposes of calculating entire net income for the  base  year,  as  such
    46  sections were in effect on December thirty-first, two thousand fourteen.
    47    (4)  "Base  year  tax rate" means the taxpayer's tax rate for the base
    48  year as applied to entire net income and  calculated  under  subdivision
    49  one  of  section  11-604  of  this chapter or subdivision (a) of section
    50  11-643.5 of this chapter, as such provisions were in effect on  December
    51  thirty-first, two thousand fourteen.
    52    (b)  The  prior  net  operating  loss  conversion subtraction shall be
    53  calculated as follows:
    54    (1) The taxpayer shall first calculate the tax value of its unabsorbed
    55  net operating loss for the base year. The value is equal to the  product
    56  of  (i) the amount of the taxpayer's unabsorbed net operating loss, (ii)

        S. 4610--A                         52                         A. 6721--A
 
     1  the taxpayer's base year BAP, and (iii) the  taxpayer's  base  year  tax
     2  rate.
     3    (2)  The  product  determined under subparagraph one of this paragraph
     4  shall then be divided by eight and eighty-five one hundredths per centum
     5  or, in the case of a financial corporation, as defined in clause (i)  of
     6  subparagraph  one  of paragraph (e) of subdivision one of section 11-654
     7  of this subchapter, the product determined  under  subparagraph  one  of
     8  this  paragraph  shall  then  be divided by nine per centum. This result
     9  shall  equal  the  taxpayer's  prior  net  operating   loss   conversion
    10  subtraction pool.
    11    (3) The taxpayer's prior net operating loss conversion subtraction for
    12  the  taxable  year shall equal one-tenth of its prior net operating loss
    13  conversion subtraction pool, plus any amount of unused prior net operat-
    14  ing loss conversion subtraction from preceding taxable years.
    15    (4) In lieu of the prior net  operating  loss  conversion  subtraction
    16  described  in  subparagraph  three of this paragraph, if the taxpayer so
    17  elects, the taxpayer's prior net operating loss  conversion  subtraction
    18  for  its taxable years beginning on or after January first, two thousand
    19  fifteen and before January first, two thousand seventeen shall equal, in
    20  each year, not more than  one-half  of  its  prior  net  operating  loss
    21  conversion  subtraction pool until the pool is exhausted. If the pool is
    22  not exhausted at the end of such time period, the remainder of the  pool
    23  shall  be  forfeited. The taxpayer shall make such election, which shall
    24  be revocable, on its first return for the tax year beginning on or after
    25  January first, two thousand fifteen and before January first, two  thou-
    26  sand  sixteen by the due date for such return (determined with regard to
    27  extensions).
    28    (c) (1) Where a taxpayer was  properly  included  or  required  to  be
    29  included  in  a  combined  report  for the base year pursuant to section
    30  11-605 of this chapter or a combined return for the base  year  pursuant
    31  to  section  11-646  of this chapter, as such sections were in effect on
    32  December thirty-first, two thousand fourteen, and  the  members  of  the
    33  combined  group  for  the  base  year are the same as the members of the
    34  combined group for the taxable  year  immediately  succeeding  the  base
    35  year,  the  combined  group shall calculate its prior net operating loss
    36  conversion subtraction pool using the combined group's total  unabsorbed
    37  net operating loss, base year BAP, and base year tax rate.
    38    (2)  If  a  combined  group includes additional members in the taxable
    39  year immediately succeeding the base year that were not included in  the
    40  combined  group  during the base year, each base year combined group and
    41  each taxpayer that filed separately for the base year but is included in
    42  the combined group in the taxable year succeeding the  base  year  shall
    43  calculate  its prior net operating loss conversion subtraction pool, and
    44  the sum of the pools shall be the  combined  prior  net  operating  loss
    45  conversion subtraction pool of the combined group.
    46    (3)  If  a taxpayer was properly included in a combined report for the
    47  base year and files a separate report for  a  subsequent  taxable  year,
    48  then  the  amount  of  remaining  prior  net  operating  loss conversion
    49  subtraction allowed to the taxpayer filing such separate report shall be
    50  proportionate to the amount that such taxpayer contributed to the  prior
    51  net  operating loss conversion subtraction pool on a combined basis, and
    52  the remaining prior net operating loss conversion subtraction allowed to
    53  the remaining members of the combined group shall be reduced  according-
    54  ly.
    55    (4)  If  a  taxpayer  filed a separate report for the base year and is
    56  properly included in a combined report for a  subsequent  taxable  year,

        S. 4610--A                         53                         A. 6721--A
 
     1  then  the  prior  net  operating loss conversion subtraction pool of the
     2  combined group shall be increased by the amount of the  remaining  prior
     3  net operating loss conversion subtraction allowed to the taxpayer at the
     4  time the taxpayer is properly included in the combined group.
     5    (d) The prior net operating loss conversion subtraction may be used to
     6  reduce  the taxpayer's tax on allocated business income to the higher of
     7  the tax on business capital under clause   (ii) of subparagraph  one  of
     8  paragraph (e) of subdivision one of section 11-654 of this subchapter or
     9  the  fixed dollar minimum under clause (iv) of subparagraph one of para-
    10  graph (e) of subdivision one  of  section  11-654  of  this  subchapter.
    11  Unless  the  taxpayer has made the election provided for in subparagraph
    12  four of paragraph (b) of this subdivision, any amount  of  unused  prior
    13  net  operating loss conversion subtraction shall be carried forward to a
    14  subsequent tax year or subsequent tax years until the prior net  operat-
    15  ing  loss  conversion  subtraction  pool is exhausted, but for no longer
    16  than twenty taxable years or the taxable  year  beginning  on  or  after
    17  January  first,  two  thousand thirty-five but before January first, two
    18  thousand thirty-six, whichever comes first. Such amount carried  forward
    19  shall  not be subject to the one-tenth limitation for the subsequent tax
    20  year or years under subparagraph three of paragraph (b) of this subdivi-
    21  sion. However, if the taxpayer elects to compute its prior net operating
    22  loss conversion subtraction pursuant to subparagraph four  of  paragraph
    23  (b) of this subdivision, the taxpayer shall not carry forward any unused
    24  amount  of  such  prior net operating loss conversion subtraction to any
    25  tax year beginning on or after January first, two thousand seventeen.
    26    3. In computing business income, a net operating loss deduction  shall
    27  be  allowed.  A  net operating loss deduction shall be the amount of net
    28  operating loss or losses from one or more taxable years that are carried
    29  forward or carried back to a particular taxable year.  A  net  operating
    30  loss shall be the amount of a business loss incurred in a particular tax
    31  year  multiplied  by the business allocation percentage for that year as
    32  determined under subdivision three of section 11-654 of this subchapter.
    33  The maximum net operating loss deduction that is allowed  in  a  taxable
    34  year  shall  be  the amount that reduces the taxpayer's tax on allocated
    35  business income to the higher of  the  tax  on  business  capital  under
    36  clause  (ii)  of subparagraph one of paragraph (e) of subdivision one of
    37  section 11-654 of this subchapter or the  fixed  dollar  minimum  amount
    38  under  clause  (iv)  of subparagraph one of paragraph (e) of subdivision
    39  one of section 11-654 of this  subchapter.    Such  net  operating  loss
    40  deduction  and net operating loss shall be determined in accordance with
    41  the following:
    42    (a) Such net operating loss deduction shall  not  be  limited  to  the
    43  amount  allowed  under  section  one hundred seventy-two of the internal
    44  revenue code or the amount that would have been allowed if the  taxpayer
    45  did not have an election under subchapter S of chapter one of the inter-
    46  nal revenue code in effect for the applicable tax year.
    47    (b)  Such net operating loss deduction shall not include any net oper-
    48  ating loss incurred during any taxable year beginning prior  to  January
    49  first,  two  thousand  fifteen,  or during any taxable year in which the
    50  taxpayer was not subject to the tax imposed by this subchapter.
    51    (c) A taxpayer that files as part of a federal consolidated return but
    52  on a separate basis for purposes of this subchapter  shall  compute  its
    53  deduction  and loss as if it were filing on a separate basis for federal
    54  income tax purposes.
    55    (d) A net operating loss may  be  carried  back  three  taxable  years
    56  preceding  the  taxable  year  of  the  loss  except that no loss may be

        S. 4610--A                         54                         A. 6721--A
 
     1  carried back to a taxable year beginning before January first, two thou-
     2  sand fifteen. The loss first shall be carried to  the  earliest  of  the
     3  three taxable years preceding the taxable year of the loss. If it is not
     4  entirely  used  in  that year, it shall be carried to the second taxable
     5  year preceding the taxable year of the loss, and  any  remaining  amount
     6  shall  be  carried to the taxable year immediately preceding the taxable
     7  year of the loss. Any unused  amount  of  loss  then  remaining  may  be
     8  carried  forward for as many as twenty taxable years following the taxa-
     9  ble year of the loss. Losses carried forward are carried  forward  first
    10  to  the taxable year immediately following the taxable year of the loss,
    11  then to the second taxable year following the taxable year of the  loss,
    12  and  then to the next immediately subsequent taxable year or years until
    13  the loss is used up or the twentieth taxable year following the  taxable
    14  year of the loss, whichever comes first.
    15    (e)  Such net operating loss deduction shall not include any net oper-
    16  ating loss incurred during any taxable  year  commencing  after  January
    17  first,  two  thousand  fifteen  if the taxpayer was subject to tax under
    18  subchapter two or three of this chapter in that year; provided, however,
    19  any year commencing after January first, two thousand fifteen  that  the
    20  taxpayer  was subject to tax under subchapter two or three of this chap-
    21  ter in that year must be treated as  a  taxable  year  for  purposes  of
    22  determining  the  number  of taxable years to which a net operating loss
    23  may be carried forward.
    24    (f) Where there are two or more allocated  net  operating  losses,  or
    25  portions  thereof, carried back or carried forward to be deducted in one
    26  particular tax year from allocated business income, the  earliest  allo-
    27  cated loss incurred must be applied first.
    28    (g)  A  taxpayer  may  elect to waive the entire carryback period with
    29  respect to a net operating loss. Such  election  must  be  made  on  the
    30  taxpayer's  original  timely  filed  return  (determined  with regard to
    31  extensions) for the taxable year of the net operating loss for which the
    32  election is to be in effect. Once an election  is  made  for  a  taxable
    33  year, it shall be irrevocable for that taxable year. A separate election
    34  must be made for each taxable year of the loss. This election applies to
    35  all members of a combined group.
    36    §  11-654.2  Receipts allocation. 1. The percentage of receipts of the
    37  taxpayer to be allocated to the city for purposes of subparagraph two of
    38  paragraph (a) of subdivision three of section 11-654 of this  subchapter
    39  shall  be  equal  to  the  receipts fraction determined pursuant to this
    40  section. The receipts fraction is a fraction,  determined  by  including
    41  only those receipts, net income, net gains, and other items described in
    42  this  section  that  are  included  in the computation of the taxpayer's
    43  business income (determined without regard to the modification  provided
    44  in  subparagraph  fourteen  of  paragraph  (a)  of  subdivision eight of
    45  section 11-652 of this subchapter) for the taxable year.  The  numerator
    46  of  the  receipts  fraction shall be equal to the sum of all the amounts
    47  required to be included in the numerator pursuant to the  provisions  of
    48  this section and the denominator of the receipts fraction shall be equal
    49  to the sum of all the amounts required to be included in the denominator
    50  pursuant to the provisions of this section.
    51    2.  (a)  Receipts from sales of tangible personal property where ship-
    52  ments are made to points within the city or the destination of the prop-
    53  erty is a point within the city shall be included in  the  numerator  of
    54  the receipts fraction. Receipts from sales of tangible personal property
    55  where  shipments  are  made to points within and without the city or the

        S. 4610--A                         55                         A. 6721--A
 
     1  destination is within and without the city  shall  be  included  in  the
     2  denominator of the receipts fraction.
     3    (b)  Receipts from sales of electricity delivered to points within the
     4  city shall be included  in  the  numerator  of  the  receipts  fraction.
     5  Receipts  from sales of electricity delivered to points within and with-
     6  out the city shall be included in the denominator of the receipts  frac-
     7  tion.
     8    (c)  Receipts from sales of tangible personal property and electricity
     9  that are traded as commodities as the term  "commodity"  is  defined  in
    10  section four hundred seventy-five of the internal revenue code, shall be
    11  included  in  the  receipts  fraction  in  accordance with clause (i) of
    12  subparagraph two of paragraph (a) of subdivision five of this section.
    13    (d) Net gains (not less than zero) from the  sales  of  real  property
    14  located  within  the  city  shall  be  included  in the numerator of the
    15  receipts fraction. Net gains (not less than zero) from the sales of real
    16  property located within and without the city shall be  included  in  the
    17  denominator of the receipts fraction.
    18    3.  (a)  Receipts  from rentals of real and tangible personal property
    19  located within the city shall  be  included  in  the  numerator  of  the
    20  receipts  fraction.  Receipts from rentals of real and tangible personal
    21  property located within and without the city shall be  included  in  the
    22  denominator of the receipts fraction.
    23    (b)  Receipts of royalties from the use of patents, copyrights, trade-
    24  marks, and similar intangible personal property within the city shall be
    25  included in the numerator of the receipts fraction. Receipts  of  royal-
    26  ties from the use of patents, copyrights, trademarks, and similar intan-
    27  gible personal property within and without the city shall be included in
    28  the  denominator  of  the receipts fraction. A patent, copyright, trade-
    29  mark, or similar intangible personal property is used within the city to
    30  the extent that the activities thereunder  are  carried  on  within  the
    31  city.
    32    (c)  Receipts  from  the  sales of rights for closed-circuit and cable
    33  television transmissions of an event (other than events occurring  on  a
    34  regularly  scheduled  basis) taking place within the city as a result of
    35  the rendition of services by employees of the corporation, as  athletes,
    36  entertainers  or  performing artists, shall be included in the numerator
    37  of the receipts fraction to the extent that such receipts are  attribut-
    38  able  to  such  transmissions  received  or  exhibited  within the city.
    39  Receipts from all sales of rights for  closed-circuit  and  cable  tele-
    40  vision transmissions of an event (other than events occurring on a regu-
    41  larly  scheduled  basis)  shall  be  included  in the denominator of the
    42  receipts fraction.
    43    4. (a) For purposes of determining the receipts  fraction  under  this
    44  section,  the  term  "digital product" means any property or service, or
    45  combination thereof, of  whatever  nature  delivered  to  the  purchaser
    46  through  the  use  of  wire, cable, fiber-optic, laser, microwave, radio
    47  wave, satellite or similar successor media, or any combination  thereof.
    48  Digital  product  includes,  but is not limited to, an audio work, audi-
    49  ovisual work, visual work, book or literary work,  graphic  work,  game,
    50  information  or  entertainment  service, storage of digital products and
    51  computer software by whatever means delivered. The term  "delivered  to"
    52  includes  furnished  or  provided  to  or accessed by. A digital product
    53  shall not include legal, medical, accounting,  architectural,  research,
    54  analytical, engineering or consulting services provided by the taxpayer.
    55    (b)  Receipts  from the sale of, license to use, or granting of remote
    56  access to digital products within the city, determined according to  the

        S. 4610--A                         56                         A. 6721--A
 
     1  hierarchy  of  methods  set  forth  in subparagraphs one through four of
     2  paragraph (c) of this subdivision, shall be included in the numerator of
     3  the receipts fraction. Receipts from the sale of,  license  to  use,  or
     4  granting  of  remote  access  to digital products within and without the
     5  city shall be included in the denominator of the receipts fraction.  The
     6  taxpayer  must  exercise  due  diligence  under each method described in
     7  paragraph (c) of this subdivision before rejecting it and proceeding  to
     8  the  next  method  in  the hierarchy, and must base its determination on
     9  information known to the taxpayer or information that would be known  to
    10  the taxpayer upon reasonable inquiry. If the receipt for a digital prod-
    11  uct is comprised of a combination of property and services, it cannot be
    12  divided  into  separate  components  and  shall  be considered to be one
    13  receipt regardless of  whether  it  is  separately  stated  for  billing
    14  purposes. The entire receipt must be allocated by this hierarchy.
    15    (c)  The  hierarchy of sourcing methods is as follows: (1) the custom-
    16  er's primary use location of the digital product; (2) the location where
    17  the digital product is received by the customer, or  is  received  by  a
    18  person designated for receipt by the customer; (3) the receipts fraction
    19  determined  pursuant  to this subdivision for the preceding taxable year
    20  for such digital product; or (4) the receipts fraction  in  the  current
    21  taxable  year  for  those digital products that can be sourced using the
    22  hierarchy of sourcing methods in subparagraphs one and two of this para-
    23  graph.
    24    5.  (a) A financial instrument is a  "nonqualified  financial  instru-
    25  ment"  if it is not a qualified financial instrument. A qualified finan-
    26  cial instrument means a financial instrument that is of a type described
    27  in any of clause (i), (ii),  (iii),  (iv),  (vii),  (viii)  or  (ix)  of
    28  subparagraph two of this paragraph and that has been marked to market in
    29  the  taxable  year  by the taxpayer under section 475 or section 1256 of
    30  the internal revenue code. Further, if the taxpayer has in  the  taxable
    31  year  marked  to  market a financial instrument of the type described in
    32  any of clause (i), (ii), (iii), (iv), (vii), (viii) or (ix) of  subpara-
    33  graph  two  of this paragraph, then any financial instrument within that
    34  type described in the above specified clause or  clauses  that  has  not
    35  been  marked to market by the taxpayer under section 475 or section 1256
    36  of the internal revenue code is a qualified financial instrument in  the
    37  taxable  year.   Notwithstanding the two preceding sentences, (i) a loan
    38  secured by real property shall not be a qualified financial  instrument,
    39  (ii)  if  the only loans that are marked to market by the taxpayer under
    40  section 475 or section 1256 of  the  internal  revenue  code  are  loans
    41  secured  by  real  property,  then no loans shall be qualified financial
    42  instruments, and (iii) stock that is investment capital  as  defined  in
    43  paragraph  (a)  of  subdivision  4  of section 11-652 of this subchapter
    44  shall not be a qualified  financial  instrument.  If  a  corporation  is
    45  included  in  a  combined  report, the definition of qualified financial
    46  instrument shall be determined on a combined basis.
    47    (1) In determining the inclusion of receipts and net gains from quali-
    48  fied financial instruments in the receipts fraction, taxpayers may elect
    49  to use the fixed percentage method described in  this  subparagraph  for
    50  qualified financial instruments. The election is irrevocable, applies to
    51  all qualified financial instruments, and must be made on an annual basis
    52  on  the taxpayer's original, timely filed return (determined with regard
    53  to extensions).  If the taxpayer elects  the  fixed  percentage  method,
    54  then  all  income, gain or loss, including marked to market net gains as
    55  defined in clause (x) of subparagraph two of this paragraph, from quali-
    56  fied financial instruments constitute business income, gain or loss.  If

        S. 4610--A                         57                         A. 6721--A
 
     1  the  taxpayer  does  not  elect to use the fixed percentage method, then
     2  receipts and net gains are included in the receipts fraction in  accord-
     3  ance  with the customer sourcing method described in subparagraph two of
     4  this  paragraph. Under the fixed percentage method, eight percent of all
     5  net income (not less than zero)  from  qualified  financial  instruments
     6  shall  be  included  in  the numerator of the receipts fraction. All net
     7  income (not less than zero) from qualified financial  instruments  shall
     8  be included in the denominator of the receipts fraction.
     9    (2)  Receipts  and  net gains from qualified financial instruments, in
    10  cases where the taxpayer did not elect to use the fixed percentage meth-
    11  od described in subparagraph one of this paragraph, and  from  nonquali-
    12  fied financial instruments shall be included in the receipts fraction in
    13  accordance  with  this  subparagraph. For purposes of this paragraph, an
    14  individual is deemed to be located within the city if his or her billing
    15  address is within the city. A business entity is deemed  to  be  located
    16  within the city if its commercial domicile is located within the city.
    17    (i)(A) Receipts constituting interest from loans secured by real prop-
    18  erty  located  within the city shall be included in the numerator of the
    19  receipts fraction. Receipts constituting interest from loans secured  by
    20  real  property  located within and without the city shall be included in
    21  the denominator of the receipts fraction.
    22    (B) Receipts constituting interest from  loans  not  secured  by  real
    23  property  shall be included in the numerator of the receipts fraction if
    24  the borrower is located within the city.  Receipts constituting interest
    25  from loans not secured by real property, whether the borrower is located
    26  within or without the city, shall be included in the denominator of  the
    27  receipts fraction.
    28    (C) Net gains (not less than zero) from sales of loans secured by real
    29  property  shall be included in the numerator of the receipts fraction as
    30  provided in this subclause. The amount of net gains from  the  sales  of
    31  loans secured by real property included in the numerator of the receipts
    32  fraction shall be determined by multiplying the net gains by a fraction,
    33  the  numerator of which shall be the amount of gross proceeds from sales
    34  of loans secured by real property located within the city and the denom-
    35  inator of which shall be the gross proceeds from sales of loans  secured
    36  by  real  property  located within and without the city.  Gross proceeds
    37  shall be determined after the deduction of any cost incurred to  acquire
    38  the  loans  but  shall  not  be less than zero. Net gains (not less than
    39  zero) from sales of loans secured by real property  located  within  and
    40  without  the  city  shall be included in the denominator of the receipts
    41  fraction.
    42    (D) Net gains (not less than zero) from sales of loans not secured  by
    43  real  property  shall be included in the numerator of the receipts frac-
    44  tion as provided in this subclause. The amount of  net  gains  from  the
    45  sales of loans not secured by real property included in the numerator of
    46  the  receipts  fraction shall be determined by multiplying the net gains
    47  by a fraction, the numerator of which  shall  be  the  amount  of  gross
    48  proceeds  from sales of loans not secured by real property to purchasers
    49  located within the city and the denominator of which shall be the amount
    50  of gross proceeds from sales of loans not secured by  real  property  to
    51  purchasers  located within and without the city. Gross proceeds shall be
    52  determined after the deduction of any cost incurred to acquire the loans
    53  but shall not be less than zero. Net gains (not  less  than  zero)  from
    54  sales  of  loans  not  secured by real property shall be included in the
    55  denominator of the receipts fraction.

        S. 4610--A                         58                         A. 6721--A
 
     1    (E) For purposes of this subdivision, a loan is secured by real  prop-
     2  erty  if  fifty  percent  or more of the value of the collateral used to
     3  secure the loan, when valued at fair market value as  of  the  time  the
     4  loan was entered into, consists of real property.
     5    (ii)  Federal, state, and municipal debt. Receipts constituting inter-
     6  est and net gains from sales of debt instruments issued  by  the  United
     7  States,  any  state,  or  political  subdivision of a state shall not be
     8  included in the numerator of the receipts fraction.  Receipts constitut-
     9  ing interest and net gains (not less  than  zero)  from  sales  of  debt
    10  instruments issued by the United States and the state of New York or its
    11  political  subdivisions,  including  the  city, shall be included in the
    12  denominator of the receipts fraction.  Fifty  percent  of  the  receipts
    13  constituting  interest  and net gains (not less than zero) from sales of
    14  debt instruments issued by other states or their political  subdivisions
    15  shall be included in the denominator of the receipts fraction.
    16    (iii)  Asset backed securities and other government agency debt. Eight
    17  percent of the interest income from asset  backed  securities  or  other
    18  securities  issued  by government agencies, including but not limited to
    19  securities  issued  by  the  government  national  mortgage  association
    20  (GNMA),  the  federal  national mortgage association (FNMA), the federal
    21  home loan mortgage corporation (FHLMC), or the small  business  adminis-
    22  tration, or eight percent of the interest income from asset backed secu-
    23  rities  issued  by  other entities shall be included in the numerator of
    24  the receipts fraction. Eight percent of the net  gains  (not  less  than
    25  zero)  from  (A)  sales  of  asset backed securities or other securities
    26  issued by government agencies, including but not limited  to  securities
    27  issued  by  GNMA,  FNMA, FHLMC, or the small business administration, or
    28  (B) sales of other asset backed  securities  that  are  sold  through  a
    29  registered  securities  broker or dealer or through a licensed exchange,
    30  shall be included in the numerator of the receipts fraction. The  amount
    31  of net gains (not less than zero) from sales of other asset backed secu-
    32  rities not referenced in subclause (A) or (B) of this clause included in
    33  the  numerator of the receipts fraction shall be determined by multiply-
    34  ing such net gains by a fraction, the numerator of which  shall  be  the
    35  amount  of  gross  proceeds from such sales to purchasers located in the
    36  city and the denominator of which shall be the amount of gross  proceeds
    37  from  such  sales  to  purchasers  located  within and without the city.
    38  Receipts constituting interest income from asset backed  securities  and
    39  other  securities referenced in this clause and net gains (not less than
    40  zero) from sales of asset backed securities and other securities  refer-
    41  enced  in  this  clause  shall  be  included  in  the denominator of the
    42  receipts  fraction.  Gross  proceeds  shall  be  determined  after   the
    43  deduction  of  any  cost to acquire the securities but shall not be less
    44  than zero.
    45    (iv) Receipts constituting interest  from  corporate  bonds  shall  be
    46  included  in  the  numerator  of the receipts fraction if the commercial
    47  domicile of the issuing corporation is within the city. Eight percent of
    48  the net gains (not less than zero) from sales of  corporate  bonds  sold
    49  through  a  registered securities broker or dealer or through a licensed
    50  exchange shall be included in the numerator of  the  receipts  fraction.
    51  The  amount of net gains (not less than zero) from other sales of corpo-
    52  rate bonds included in the numerator of the receipts fraction  shall  be
    53  determined by multiplying such net gains by a fraction, the numerator of
    54  which  is  the  amount  of  gross proceeds from such sales to purchasers
    55  located within the city and the denominator of which is  the  amount  of
    56  gross  proceeds  from sales to purchasers located within and without the

        S. 4610--A                         59                         A. 6721--A
 
     1  city. Receipts constituting interest from corporate bonds,  whether  the
     2  issuing corporation's commercial domicile is within or without the city,
     3  and  net  gains  (not  less  than zero) from sales of corporate bonds to
     4  purchasers  within and without the city shall be included in the denomi-
     5  nator of the receipts fraction. Gross proceeds shall be determined after
     6  the deduction of any cost to acquire the bonds but  shall  not  be  less
     7  than zero.
     8    (v)  Eight  percent  of  net interest income (not less than zero) from
     9  reverse repurchase agreements and securities borrowing agreements  shall
    10  be  included  in  the  numerator  of the receipts fraction. Net interest
    11  income (not less than zero) from reverse repurchase agreements and secu-
    12  rities borrowing agreements shall be included in the denominator of  the
    13  receipts  fraction.  Net  interest income from reverse repurchase agree-
    14  ments and  securities  borrowing  agreements  shall  be  determined  for
    15  purposes of this subdivision after the deduction of the interest expense
    16  from  the taxpayer's repurchase agreements and securities lending agree-
    17  ments but shall not be less than zero. For this calculation, the  amount
    18  of  such  interest expense shall be the interest expense associated with
    19  the sum of the value of the taxpayer's repurchase agreements where it is
    20  the seller/borrower plus the value of the taxpayer's securities  lending
    21  agreements  where  it  is  the  securities  lender, provided such sum is
    22  limited to the sum of the value of  the  taxpayer's  reverse  repurchase
    23  agreements  where  it  is  the  purchaser/lender  plus  the value of the
    24  taxpayer's securities lending agreements  where  it  is  the  securities
    25  borrower.
    26    (vi)  Eight  percent  of  the  net  interest (not less than zero) from
    27  federal funds shall be included in the numerator of the  receipts  frac-
    28  tion.  The net interest (not less than zero) from federal funds shall be
    29  included in the denominator of the receipts fraction. Net interest  from
    30  federal  funds  shall  be determined after deduction of interest expense
    31  from federal funds.
    32    (vii) Dividends from stock, net gains (not less than zero) from  sales
    33  of  stock  and  net gains (not less than zero) from sales of partnership
    34  interests shall not be included in either the numerator  or  denominator
    35  of  the  receipts fraction unless the commissioner of finance determines
    36  pursuant to subdivision eleven of this section that  inclusion  of  such
    37  dividends  and  net  gains (not less than zero) is necessary to properly
    38  reflect the business income or capital of the taxpayer.
    39    (viii)(A) Receipts constituting interest from other financial  instru-
    40  ments shall be included in the numerator of the receipts fraction if the
    41  payor  is  located  within the city. Receipts constituting interest from
    42  other financial instruments, whether the payor is within or without  the
    43  city, shall be included in the denominator of the receipts fraction.
    44    (B)  Net  gains  (not  less  than  zero) from sales of other financial
    45  instruments and other income (not less than zero) from  other  financial
    46  instruments  where  the  purchaser  or  payor is located within the city
    47  shall be included in the numerator of the  receipts  fraction,  provided
    48  that,  if  the  purchaser  or payor is a registered securities broker or
    49  dealer or the transaction is made  through  a  licensed  exchange,  then
    50  eight percent of the net gains (not less than zero) or other income (not
    51  less than zero) shall be included in the numerator of the receipts frac-
    52  tion.  Net  gains  (not  less  than  zero) from sales of other financial
    53  instruments and other income (not less than zero) from  other  financial
    54  instruments  shall  be included in the denominator of the receipts frac-
    55  tion.

        S. 4610--A                         60                         A. 6721--A
 
     1    (ix) Net income (not less than zero) from sales  of  physical  commod-
     2  ities  shall  be  included  in the numerator of the receipts fraction as
     3  provided in this clause.  The amount of net income from sales  of  phys-
     4  ical  commodities  included  in  the  numerator of the receipts fraction
     5  shall be determined by multiplying the net income from sales of physical
     6  commodities by a fraction, the numerator of which shall be the amount of
     7  receipts from sales of physical commodities actually delivered to points
     8  within  the  city  or,  if  there  is no actual delivery of the physical
     9  commodity, sold to purchasers located within the city, and the denomina-
    10  tor of which shall be the amount of  receipts  from  sales  of  physical
    11  commodities actually delivered to points within and without the city or,
    12  if  there  is  no  actual  delivery  of  the physical commodity, sold to
    13  purchasers located within and without the city.  Net  income  (not  less
    14  than  zero)  from sales of physical commodities shall be included in the
    15  denominator of the receipts fraction. Net income (not  less  than  zero)
    16  from  sales  of  physical  commodities  shall  be  determined  after the
    17  deduction of the cost to acquire or produce the physical commodities.
    18    (x)(A) For purposes of this subdivision, "marked to market" means that
    19  a financial instrument is, under section four  hundred  seventy-five  or
    20  section  twelve  hundred fifty-six of the internal revenue code, treated
    21  by the taxpayer as sold for its fair market value on the  last  business
    22  day  of  the  taxpayer's taxable year.   "Marked to market gain or loss"
    23  means the gain or loss recognized by the  taxpayer  under  section  four
    24  hundred seventy-five or section twelve hundred fifty-six of the internal
    25  revenue code because the financial instrument is treated as sold for its
    26  fair  market  value  on  the last business day of the taxpayer's taxable
    27  year.
    28    (B) The amount of marked to market net gains (not less than zero) from
    29  each type of financial instrument that is marked to market  included  in
    30  the  numerator of the receipts fraction shall be determined by multiply-
    31  ing the marked to market net gains (not less than zero) from  such  type
    32  of  financial  instrument by a fraction, the numerator of which shall be
    33  the numerator of the receipts fraction for net gains from that  type  of
    34  financial  instrument  determined  under  the  applicable clause of this
    35  subparagraph and the denominator of which shall be  the  denominator  of
    36  the  receipts fraction for net gains from that type of financial instru-
    37  ment determined under the applicable clause of this subparagraph. Marked
    38  to market net gains (not less than zero) from financial instruments  for
    39  which the numerator of the receipts fraction for net gains is determined
    40  under the immediately preceding sentence shall be included in the denom-
    41  inator of the receipts fraction.
    42    (C)  If  the  type of financial instrument that is marked to market is
    43  not otherwise sourced by the taxpayer under this subparagraph, or if the
    44  taxpayer has a net loss from the sales of that type of financial instru-
    45  ment under the applicable clause of this  subparagraph,  the  amount  of
    46  marked to market net gains (not less than zero) from that type of finan-
    47  cial instrument included in the numerator of the receipts fraction shall
    48  be  determined  by  multiplying  the marked to market net gains (but not
    49  less than zero) from that type of financial instrument  by  a  fraction,
    50  the  numerator  of  which  shall  be  the  sum of the amount of receipts
    51  included in the numerator of the receipts  fraction  under  clauses  (i)
    52  through  (ix) of this subparagraph and subclause (B) of this clause, and
    53  the denominator of which shall be the sum  of  the  amount  of  receipts
    54  included  in  the denominator of the receipts fraction under clauses (i)
    55  through (ix) of this subparagraph and  subclause  (B)  of  this  clause.
    56  Marked  to market net gains (not less than zero) for which the amount to

        S. 4610--A                         61                         A. 6721--A
 
     1  be included in the numerator of  the  receipts  fraction  is  determined
     2  under the immediately preceding sentence shall be included in the denom-
     3  inator of the receipts fraction.
     4    (b)  Receipts of a registered securities broker or dealer from securi-
     5  ties or commodities broker or dealer activities described in this  para-
     6  graph  shall  be  deemed to be generated within the city as described in
     7  subparagraphs one through eight of this paragraph.  Receipts  from  such
     8  activities  generated within the city shall be included in the numerator
     9  of the receipts fraction. Receipts from such activities generated within
    10  and without the city  shall  be  included  in  the  denominator  of  the
    11  receipts fraction. For the purposes of this paragraph, the term "securi-
    12  ties"  shall have the same meaning as in paragraph two of subsection (c)
    13  of section four hundred seventy-five of the internal  revenue  code  and
    14  the  term  "commodities" shall have the same meaning as in paragraph two
    15  of subsection (e) of section four hundred seventy-five of  the  internal
    16  revenue code.
    17    (1)  Receipts  constituting  brokerage  commissions  derived  from the
    18  execution of securities or commodities purchase or sales orders for  the
    19  accounts of customers shall be deemed to be generated within the city if
    20  the  mailing  address in the records of the taxpayer of the customer who
    21  is responsible for paying such commissions is within the city.
    22    (2) Receipts constituting margin interest earned on behalf of  broker-
    23  age  accounts  shall  be  deemed  to be generated within the city if the
    24  mailing address in the records of the taxpayer of the  customer  who  is
    25  responsible for paying such margin interest is within the city.
    26    (3) (i) Receipts constituting fees earned by the taxpayer for advisory
    27  services to a customer in connection with the underwriting of securities
    28  for  such customer (such customer being the entity that is contemplating
    29  issuing or is issuing securities) or fees earned  by  the  taxpayer  for
    30  managing an underwriting shall be deemed to be generated within the city
    31  if  the  mailing address in the records of the taxpayer of such customer
    32  who is responsible for paying such fees is within the city.
    33    (ii) Receipts constituting the primary spread  of  selling  concession
    34  from  underwritten securities shall be deemed to be generated within the
    35  city if the customer is located within the city.
    36    (iii) The term "primary spread" means the difference between the price
    37  paid by the taxpayer to the issuer of the securities being marketed  and
    38  the  price received from the subsequent sale of the underwritten securi-
    39  ties at the initial public offering price, less any  selling  concession
    40  and any fees paid to the taxpayer for advisory services or any manager's
    41  fees,  if  such  fees are not paid by the customer to the taxpayer sepa-
    42  rately. The term "public offering price" means the price agreed upon  by
    43  the taxpayer and the issuer at which the securities are to be offered to
    44  the  public.  The term "selling concession" means the amount paid to the
    45  taxpayer for participating in the underwriting of a security  where  the
    46  taxpayer is not the lead underwriter.
    47    (4)  Receipts constituting account maintenance fees shall be deemed to
    48  be generated within the city if the mailing address in  the  records  of
    49  the  taxpayer of the customer who is responsible for paying such account
    50  maintenance fees is within the city.
    51    (5) Receipts constituting fees for management  or  advisory  services,
    52  including  fees  for advisory services in relation to merger or acquisi-
    53  tion activities, but excluding fees paid for services described in para-
    54  graph (d) of this subdivision, shall be deemed to  be  generated  within
    55  the  city  if  the mailing address in the records of the taxpayer of the
    56  customer who is responsible for paying such fees is within the city.

        S. 4610--A                         62                         A. 6721--A
 
     1    (6) Receipts constituting interest earned by the taxpayer on loans and
     2  advances made by the taxpayer  to  a  corporation  affiliated  with  the
     3  taxpayer  but  with  which  the taxpayer is not permitted or required to
     4  file a combined report pursuant to section 11-654.3 of  this  subchapter
     5  shall  be deemed to arise from services performed at the principal place
     6  of business of such affiliated corporation.
     7    (7) If the taxpayer receives any of the receipts enumerated in subpar-
     8  agraphs one through four of this paragraph as a result of  a  securities
     9  correspondent  relationship  such  taxpayer  has  with another broker or
    10  dealer with the taxpayer acting in this  relationship  as  the  clearing
    11  firm,  such  receipts shall be deemed to be generated within the city to
    12  the extent set forth in each of such subparagraphs. The amount  of  such
    13  receipts shall exclude the amount the taxpayer is required to pay to the
    14  correspondent  firm for such correspondent relationship. If the taxpayer
    15  receives any of the receipts enumerated  in  subparagraphs  one  through
    16  four  of  this  paragraph  as  a  result  of  a securities correspondent
    17  relationship such taxpayer has with another broker or  dealer  with  the
    18  taxpayer  acting  in  this  relationship  as  the introducing firm, such
    19  receipts shall be deemed to be generated within the city to  the  extent
    20  set forth in each of such subparagraphs.
    21    (8) If, for the purposes of subparagraph one, subparagraph two, clause
    22  (i)  of  subparagraph  three, subparagraph four, or subparagraph five of
    23  this paragraph, the taxpayer is unable from its records to determine the
    24  mailing address of the customer, eight percent of the receipts shall  be
    25  included in the numerator of the receipts fraction.
    26    (c)  Receipts  relating to the bank, credit, travel, and entertainment
    27  card activities described in this paragraph shall be deemed to be gener-
    28  ated within the city as described in subparagraphs one through  four  of
    29  this paragraph.  Receipts from such activities generated within the city
    30  shall  be  included  in the numerator of the receipts fraction. Receipts
    31  from such activities generated within and  without  the  city  shall  be
    32  included in the denominator of the receipts fraction.
    33    (1)  Receipts  constituting  interest,  and  fees and penalties in the
    34  nature of interest, from bank, credit,  travel  and  entertainment  card
    35  receivables shall be deemed to be generated within the city if the mail-
    36  ing  address of the card holder in the records of the taxpayer is within
    37  the city;
    38    (2) Receipts from service charges and fees from such  cards  shall  be
    39  deemed  to  be  generated  within the city if the mailing address of the
    40  card holder in the records of the taxpayer is within the city;
    41    (3) Receipts from merchant discounts shall be deemed to  be  generated
    42  within  the city if the merchant is located within the city. In the case
    43  of a merchant with locations both within  and  without  the  city,  only
    44  receipts  from  merchant  discounts  attributable  to  sales  made  from
    45  locations within the city  are  allocated  to  the  city.  It  shall  be
    46  presumed  that  the  location  of  the  merchant  is  the address of the
    47  merchant shown on the invoice submitted by the merchant to the taxpayer;
    48  and
    49    (4) Receipts from credit card authorization processing,  and  clearing
    50  and  settlement  processing received by a credit card processor shall be
    51  deemed to be generated within the city if the location where the  credit
    52  card  processor's  customer accesses the credit card processor's network
    53  is located within the city. The amount of all other receipts received by
    54  a credit card processor not specifically addressed in  subdivisions  one
    55  through  nine  or subdivision twelve of this section deemed to be gener-
    56  ated within the city shall be determined by multiplying the total amount

        S. 4610--A                         63                         A. 6721--A
 
     1  of such other receipts by the average of (i) eight percent and (ii)  the
     2  percent  of  New  York  city access points. The percent of New York city
     3  access points shall be the number of locations in  New  York  city  from
     4  which  the  credit  card  processor's  customers  access the credit card
     5  processor's network divided by the total  number  of  locations  in  the
     6  United  States  where  the  credit card processor's customers access the
     7  credit card processor's network.
     8    (d) Receipts received from an investment company arising from the sale
     9  of management, administration or distribution services to  such  invest-
    10  ment  company shall be included in the denominator of the receipts frac-
    11  tion. The portion of such receipts included  in  the  numerator  of  the
    12  receipts  fraction (such portion referred to herein as the New York city
    13  portion) shall be determined as provided in this paragraph.
    14    (1) The New York city portion shall be the product  of  the  total  of
    15  such receipts from the sale of such services and a fraction. The numera-
    16  tor  of  that  fraction  shall be the sum of the monthly percentages (as
    17  defined hereinafter) determined for each month of the investment  compa-
    18  ny's  taxable  year  for  federal income tax purposes which taxable year
    19  ends within the taxable year of the taxpayer (but  excluding  any  month
    20  during  which  the  investment  company  had no outstanding shares). The
    21  monthly percentage for each such month shall be determined  by  dividing
    22  the  number  of  shares  in the investment company that are owned on the
    23  last day of the month by shareholders that are located in  the  city  by
    24  the total number of shares in the investment company outstanding on that
    25  date. The denominator of the fraction shall be the number of such month-
    26  ly percentages.
    27    (2)(i)  For purposes of this paragraph, an individual, estate or trust
    28  shall be deemed to be located within the city if his, her or its mailing
    29  address in the records of the investment company is located  within  the
    30  city.  A  business entity is deemed to be located within the city if its
    31  commercial domicile is located within the city.
    32    (ii) For purposes of this paragraph,  the  term  "investment  company"
    33  means  a  regulated  investment  company,  as  defined  in section eight
    34  hundred fifty-one of the internal revenue code,  and  a  partnership  to
    35  which subsection (a) of section seven thousand seven hundred four of the
    36  internal   revenue  code  applies  (by  virtue  of  paragraph  three  of
    37  subsection (c) of section seven thousand  seven  hundred  four  of  such
    38  code) and that meets the requirements of subsection (b) of section eight
    39  hundred  fifty-one of such code. The preceding sentence shall be applied
    40  to the taxable year for federal income  tax  purposes  of  the  business
    41  entity  that  is  asserted to constitute an investment company that ends
    42  within the taxable year of the taxpayer.
    43    (iii) For purposes of this paragraph, the term "receipts received from
    44  an investment  company"  includes  amounts  received  directly  from  an
    45  investment  company as well as amounts received from the shareholders in
    46  such investment company, in their capacity as such.
    47    (iv) For purposes of this paragraph, the  term  "management  services"
    48  means  the  rendering  of  investment  advice  to an investment company,
    49  making determinations as to when sales and purchases of  securities  are
    50  to  be  made  on  behalf  of  an  investment  company, or the selling or
    51  purchasing of securities constituting assets of an  investment  company,
    52  and  related  activities, but only where such activity or activities are
    53  performed pursuant to a contract with  the  investment  company  entered
    54  into  pursuant  to  subsection  (a)  of  section  fifteen of the federal
    55  investment company act of nineteen hundred forty, as amended.

        S. 4610--A                         64                         A. 6721--A
 
     1    (v) For purposes of this paragraph, the term  "distribution  services"
     2  means  the services of advertising, servicing investor accounts (includ-
     3  ing redemptions), marketing shares or selling shares  of  an  investment
     4  company,  but,  in  the case of advertising, servicing investor accounts
     5  (including  redemptions) or marketing shares, only where such service is
     6  performed by a person who is (or was, in the case of a closed end compa-
     7  ny) also engaged in the service of selling such shares. In the  case  of
     8  an  open  end  company, such service of selling shares must be performed
     9  pursuant to a contract  entered  into  pursuant  to  subsection  (b)  of
    10  section  fifteen  of  the  federal  investment  company  act of nineteen
    11  hundred forty, as amended.
    12    (vi)  For  purposes  of  this  paragraph,  the  term   "administration
    13  services"  includes  clerical, accounting, bookkeeping, data processing,
    14  internal auditing, legal and tax services performed  for  an  investment
    15  company  but only if the provider of such service or services during the
    16  taxable year in which such service  or  services  are  sold  also  sells
    17  management  or  distribution  services,  as defined hereinabove, to such
    18  investment company.
    19    (e) For purposes of this subdivision, a taxpayer shall use the follow-
    20  ing hierarchy to determine the commercial domicile of a business entity,
    21  based on the information known to the taxpayer or information that would
    22  be known upon reasonable inquiry: (1) the seat of management and control
    23  of the business entity; and (2) the  billing  address  of  the  business
    24  entity  in  the taxpayer's records. The taxpayer must exercise due dili-
    25  gence before rejecting the first method in this hierarchy and proceeding
    26  to the next method.
    27    (f) For purposes of this subdivision, the term "registered  securities
    28  broker  or  dealer"  means  a broker or dealer registered as such by the
    29  securities and exchange commission or a broker or dealer  registered  as
    30  such by the commodities futures trading commission, and shall include an
    31  OTC  derivatives  dealer  as defined under regulations of the securities
    32  and exchange commission at title 17, part 240, section 3b-12 of the code
    33  of federal regulations (17 CFR 240.3b-12).
    34    6. Receipts from the conduct of a railroad business (including surface
    35  railroad, whether or not operated by steam,  subway  railroad,  elevated
    36  railroad,  palace  car  or sleeping car business) or a trucking business
    37  shall be included in the numerator of the receipts fraction as  follows.
    38  The  amount  of  receipts  from  the conduct of a railroad business or a
    39  trucking business included in the numerator  of  the  receipts  fraction
    40  shall  be  determined  by  multiplying  the amount of receipts from such
    41  business by a fraction, the numerator of which shall  be  the  miles  in
    42  such  business  within the city during the period covered by the taxpay-
    43  er's report and the denominator of which shall  be  the  miles  in  such
    44  business  within  and without the city during such period. Receipts from
    45  the conduct of the railroad business or a  trucking  business  shall  be
    46  included in the denominator of the receipts fraction.
    47    7. (a) Receipts of a taxpayer acting as principal from the activity of
    48  air  freight  forwarding  and like indirect air carrier receipts arising
    49  from such activity shall be included in the numerator  of  the  receipts
    50  fraction  as  follows:  one hundred percent of such receipts if both the
    51  pickup and delivery associated with such receipts are  made  within  the
    52  city and fifty percent of such receipts if either the pickup or delivery
    53  associated  with  such receipts is made within this city. Such receipts,
    54  whether the pickup or delivery associated with the receipts is within or
    55  without the city, shall be included in the denominator of  the  receipts
    56  fraction.

        S. 4610--A                         65                         A. 6721--A
 
     1    (b)(1)(i) The portion of receipts of a taxpayer from aviation services
     2  (other than services described in paragraph (a) of this subdivision, but
     3  including  the  receipts  of  a  qualified  air freight forwarder) to be
     4  included in the numerator of the receipts fraction shall  be  determined
     5  by  multiplying its receipts from such aviation services by a percentage
     6  which is equal to the arithmetic average of the following three percent-
     7  ages:
     8    (A) the percentage determined by dividing the  aircraft  arrivals  and
     9  departures  within the city by the taxpayer during the period covered by
    10  its report by the total aircraft  arrivals  and  departures  within  and
    11  without  the  city  during  such period; provided, however, arrivals and
    12  departures solely for maintenance or repair, refueling (where no  debar-
    13  kation  or  embarkation  of  traffic occurs), arrivals and departures of
    14  ferry and personnel training flights or arrivals and departures  in  the
    15  event  of  emergency  situations shall not be included in computing such
    16  arrival and departure percentage; provided, further, the commissioner of
    17  finance may also exempt  from  such  percentage  aircraft  arrivals  and
    18  departures  of  all  non-revenue flights including flights involving the
    19  transportation of officers or employees receiving air transportation  to
    20  perform maintenance or repair services or where such officers or employ-
    21  ees  are  transported  in conjunction with an emergency situation or the
    22  investigation of an air disaster (other than  on  a  scheduled  flight);
    23  provided,  however, that arrivals and departures of flights transporting
    24  officers and employees receiving air transportation for  purposes  other
    25  than  specified above (without regard to remuneration) shall be included
    26  in computing such arrival and departure percentage;
    27    (B) the percentage determined by dividing the revenue tons handled  by
    28  the taxpayer at airports within the city during such period by the total
    29  revenue  tons  handled  by  it  at  airports within and without the city
    30  during such period; and
    31    (C) the percentage determined by dividing the  taxpayer's  originating
    32  revenue within the city for such period by its total originating revenue
    33  within and without the city for such period.
    34    (ii)  As used herein the term "aircraft arrivals and departures" means
    35  the number of landings and takeoffs of the aircraft of the taxpayer  and
    36  the number of air pickups and deliveries by the aircraft of such taxpay-
    37  er;  the  term  "originating revenue" means revenue to the taxpayer from
    38  the transportation of revenue  passengers  and  revenue  property  first
    39  received  by the taxpayer either as originating or connecting traffic at
    40  airports; and  the  term  "revenue  tons  handled  by  the  taxpayer  at
    41  airports" means the weight in tons of revenue passengers (at two hundred
    42  pounds  per passenger) and revenue cargo first received either as origi-
    43  nating or connecting traffic or finally discharged by  the  taxpayer  at
    44  airports.
    45    (2)  All  such receipts of a taxpayer from aviation services described
    46  in this paragraph shall be included in the denominator of  the  receipts
    47  fraction.
    48    (3) A corporation is a qualified air freight forwarder with respect to
    49  another corporation:
    50    (i)  if  it  owns or controls either directly or indirectly all of the
    51  capital stock of such other corporation, or if all of its capital  stock
    52  is  owned  or  controlled  either  directly  or indirectly by such other
    53  corporation, or if all of the capital  stock  of  both  corporations  is
    54  owned or controlled either directly or indirectly by the same interests;
    55    (ii)  if  it  is  principally  engaged  in the business of air freight
    56  forwarding; and

        S. 4610--A                         66                         A. 6721--A
 
     1    (iii) if its air freight forwarding business is carried on principally
     2  with the airline or airlines operated by such other corporation.
     3    8.  (a) The amount of receipts from sales of advertising in newspapers
     4  or periodicals included in the numerator of the receipts fraction  shall
     5  be  determined  by multiplying the total of such receipts by a fraction,
     6  the numerator of which shall be the number of newspapers and periodicals
     7  delivered to points within the city and the denominator of  which  shall
     8  be  the  number of newspapers and periodicals delivered to points within
     9  and without the city. The total of such receipts from sales of advertis-
    10  ing in newspapers or periodicals shall be included in the denominator of
    11  the receipts fraction.
    12    (b) The amount of receipts from sales of advertising on television  or
    13  radio included in the numerator of the receipts fraction shall be deter-
    14  mined  by  multiplying  the  total  of  such receipts by a fraction, the
    15  numerator of which shall be the number of viewers  or  listeners  within
    16  the  city and the denominator of which shall be the number of viewers or
    17  listeners within and without the city.  The total of such receipts  from
    18  sales  of  advertising  on  television or radio shall be included in the
    19  denominator of the receipts fraction.
    20    (c) The amount of receipts from sales of advertising not described  in
    21  paragraph  (a) or (b) of this subdivision that is furnished, provided or
    22  delivered to, or accessed by the viewer or listener through the  use  of
    23  wire,  cable,  fiber-optic,  laser,  microwave, radio wave, satellite or
    24  similar successor media or any  combination  thereof,  included  in  the
    25  numerator  of  the  receipts fraction shall be determined by multiplying
    26  the total of such receipts by a fraction, the numerator of  which  shall
    27  be  the number of viewers or listeners within the city and the denomina-
    28  tor of which shall be the number of  viewers  or  listeners  within  and
    29  without  the  city. The total of such receipts from sales of advertising
    30  described in this paragraph shall be included in the denominator of  the
    31  receipts fraction.
    32    9.  Receipts  from  the  transportation or transmission of gas through
    33  pipes shall be included in the numerator of  the  receipts  fraction  as
    34  follows.  The amount of receipts from the transportation or transmission
    35  of gas through pipes included in the numerator of the receipts  fraction
    36  shall  be determined by multiplying the total amount of such receipts by
    37  a fraction, the numerator of which shall be the  taxpayer's  transporta-
    38  tion  units  within  the  city and the denominator of which shall be the
    39  taxpayer's transportation units within and without the city. A transpor-
    40  tation unit is the transportation of  one  cubic  foot  of  gas  over  a
    41  distance of one mile.  The total amount of receipts from the transporta-
    42  tion  or  transmission  of  gas  through  pipes shall be included in the
    43  denominator of the receipts fraction.
    44    10. (a) Receipts from  services  not  addressed  in  subdivisions  one
    45  through  nine  or  subdivision twelve of this section and other business
    46  receipts not addressed in such subdivisions shall  be  included  in  the
    47  numerator  of  the  receipts fraction if the location of the customer is
    48  within the city. Such receipts from customers  within  and  without  the
    49  city  shall  be  included  in  the denominator of the receipts fraction.
    50  Whether the receipts are included in the numerator of the receipts frac-
    51  tion shall be determined according to the hierarchy of methods set forth
    52  in paragraph (b) of this subdivision.   The taxpayer must  exercise  due
    53  diligence under each method described in such paragraph before rejecting
    54  it and proceeding to the next method in the hierarchy, and must base its
    55  determination  on  information known to the taxpayer or information that
    56  would be known to the taxpayer upon reasonable inquiry.

        S. 4610--A                         67                         A. 6721--A
 
     1    (b) The hierarchy of methods is  as  follows:    (1)  the  benefit  is
     2  received  in  the city; (2) delivery destination; (3) the receipts frac-
     3  tion for such receipts within  the  city  determined  pursuant  to  this
     4  subdivision for the preceding taxable year; or (4) the receipts fraction
     5  in  the current taxable year determined pursuant to this subdivision for
     6  those receipts that can be sourced using the hierarchy of sourcing meth-
     7  ods in subparagraphs one and two of this paragraph.
     8    11. If it shall appear that the receipts fraction determined  pursuant
     9  to this section does not result in a proper reflection of the taxpayer's
    10  business  income or capital within the city, the commissioner of finance
    11  is authorized in his or her discretion to adjust it, or the taxpayer may
    12  request that the commissioner of finance adjust it, by (a) excluding one
    13  or more items in such determination, (b) including  one  or  more  other
    14  items in such determination, or (c) any other similar or different meth-
    15  od  calculated  to  effect  a fair and proper allocation of the business
    16  income and capital reasonably attributed to the city. The party  seeking
    17  the  adjustment  shall  bear the burden of proof to demonstrate that the
    18  receipts fraction determined pursuant to this section does not result in
    19  a proper reflection of the taxpayer's business income or capital  within
    20  the city and that the proposed adjustment is appropriate.
    21    12.  Receipts  from  the operation of vessels shall be included in the
    22  numerator of the receipts fraction as follows. The  amount  of  receipts
    23  from  the operation of vessels included in the numerator of the receipts
    24  fraction shall be determined by multiplying the amount of such  receipts
    25  by  a  fraction, the numerator of which shall be the aggregate number of
    26  working days of the vessels owned or leased by the taxpayer in  territo-
    27  rial  waters  of  the  city  during the period covered by the taxpayer's
    28  report and the denominator of which shall be  the  aggregate  number  of
    29  working  days of all vessels owned or leased by the taxpayer during such
    30  period. Receipts from the operation of vessels shall be included in  the
    31  denominator of the receipts fraction.
    32    § 11-654.3 Combined reports. 1. (a) The tax on a combined report shall
    33  be the highest of (1) the combined business income multiplied by the tax
    34  rate  specified  in  clause  (i) of subparagraph one of paragraph (e) of
    35  subdivision one of section 11-654 of this subchapter; (2)  the  combined
    36  capital  multiplied by the tax rate specified in clause (ii) of subpara-
    37  graph one of paragraph (e) of subdivision one of section 11-654 of  this
    38  subchapter, but not exceeding the limitation provided for in such clause
    39  (ii); or (3) the fixed dollar minimum that is attributable to the desig-
    40  nated  agent  of  the combined group. In addition, the tax on a combined
    41  report shall include the fixed dollar minimum tax  specified  in  clause
    42  (iv)  of subparagraph one of paragraph (e) of subdivision one of section
    43  11-654 of this subchapter for each member of the combined  group,  other
    44  than the designated agent, that is a taxpayer.
    45    (b)  The  combined  business income base is the amount of the combined
    46  business income of the combined group that is  allocated  to  the  city,
    47  reduced  by  any prior net operating loss conversion subtraction and any
    48  net operating loss deduction for the combined group. The combined  capi-
    49  tal  base  is  the  amount of the combined capital of the combined group
    50  that is allocated to the city.
    51    2. (a) Except as provided in paragraph (c) of  this  subdivision,  any
    52  taxpayer  (1)  which owns or controls either directly or indirectly more
    53  than fifty percent of the voting power of the capital stock  of  one  or
    54  more  other  corporations,  or (2) more than fifty percent of the voting
    55  power of the capital stock  of  which  is  owned  or  controlled  either
    56  directly  or  indirectly  by one or more other corporations, or (3) more

        S. 4610--A                         68                         A. 6721--A
 
     1  than fifty percent of the voting power of the capital stock of which and
     2  the capital stock of  one  or  more  other  corporations,  is  owned  or
     3  controlled,  directly or indirectly, by the same interests, and (4) that
     4  is  engaged  in  a unitary business with those corporations (hereinafter
     5  referred to as "related corporations"), shall  make  a  combined  report
     6  with those other corporations.
     7    (b)  A corporation required to make a combined report within the mean-
     8  ing of this section shall also include (1) a captive REIT and a  captive
     9  RIC; (2) a combinable captive insurance company; and (3) an alien corpo-
    10  ration  that  satisfies the conditions in paragraph (a) of this subdivi-
    11  sion if (i) under any provision  of  the  internal  revenue  code,  that
    12  corporation is treated as a "domestic corporation" as defined in section
    13  seven  thousand  seven hundred one of the internal revenue code, or (ii)
    14  it has effectively connected income for the  taxable  year  pursuant  to
    15  clause  (iii)  of  the opening paragraph of subdivision eight of section
    16  11-652 of this subchapter.
    17    (c) A corporation required or permitted  to  make  a  combined  report
    18  under  this  section  does not include (1) a corporation that is taxable
    19  under a tax imposed by subchapter two or three of this chapter or  chap-
    20  ter  eleven  of this title (except for a vendor of utility services that
    21  is taxable under both chapter eleven of this title and this subchapter),
    22  or would be taxable under a tax imposed by subchapter two  or  three  of
    23  this  chapter  or  chapter  eleven of this title (except for a vendor of
    24  utility services that is taxable under both chapter eleven of this title
    25  and this subchapter), or would have been taxable as an insurance  corpo-
    26  ration  under  the  former  part  IV,  title R, chapter forty-six of the
    27  administrative code as in effect on  June  thirtieth,  nineteen  hundred
    28  seventy-four;  (2)  a REIT that is not a captive REIT, and a RIC that is
    29  not a captive RIC; or (3) an alien corporation that under any  provision
    30  of  the internal revenue code is not treated as a "domestic corporation"
    31  as defined in section seven thousand seven hundred one of such code  and
    32  has  no  effectively  connected  income for the taxable year pursuant to
    33  clause (iii) of the opening paragraph of subdivision  eight  of  section
    34  11-652  of  this  subchapter.   If a corporation is subject to tax under
    35  this subchapter solely as a result of its ownership of a limited partner
    36  interest in a limited partnership  that  is  doing  business,  employing
    37  capital,  owning  or  leasing property, or maintaining an office in this
    38  city, and none of the corporation's related corporations are subject  to
    39  tax  under  this  subchapter,  such corporation shall not be required or
    40  permitted to file a combined report under this section with such related
    41  corporations.
    42    (d) A combined report shall be filed by the designated  agent  of  the
    43  combined group as determined under subdivision seven of this section.
    44    3.  (a)  Subject to the provisions of paragraph (c) of subdivision two
    45  of this section, a taxpayer may elect to treat as its combined group all
    46  corporations that meet the ownership requirements described in paragraph
    47  (a) of subdivision two of this section (such  corporations  collectively
    48  referred  to in this subdivision as the "commonly owned group"). If that
    49  election is made, the commonly owned group shall calculate the  combined
    50  business  income,  combined  business  capital, and fixed dollar minimum
    51  amount of all members of the group in accordance with paragraph four  of
    52  this  subdivision, whether or not that business income or business capi-
    53  tal is from a single unitary business.
    54    (b) The election under this subdivision shall be made on an  original,
    55  timely  filed  return  (determined  with  regard  to  extensions) of the
    56  combined group. Any corporation entering a commonly owned  group  subse-

        S. 4610--A                         69                         A. 6721--A
 
     1  quent  to  the  year of election shall be included in the combined group
     2  and is considered to have waived any objection to its inclusion  in  the
     3  combined group.
     4    (c)  The election shall be irrevocable, and binding for and applicable
     5  to the taxable year for which it is made and for the  next  six  taxable
     6  years.  The  election  will  automatically  be renewed for another seven
     7  taxable years after it has been in effect for seven taxable years unless
     8  it is  affirmatively  revoked.  The  revocation  shall  be  made  on  an
     9  original, timely filed return (determined with regard to extensions) for
    10  the  first  taxable year after the completion of a seven year period for
    11  which an election under this subdivision was in place. In the case of  a
    12  revocation, a new election under this subdivision shall not be permitted
    13  in  any of the immediately following three taxable years. In determining
    14  the seven and three year periods  described  in  this  paragraph,  short
    15  taxable years shall not be considered or counted.
    16    4.  (a) In computing the tax bases for a combined report, the combined
    17  group shall generally be treated as  a  single  corporation,  except  as
    18  otherwise provided, and subject to any regulations or guidance issued by
    19  the commissioner of finance or the department of finance.
    20    (b)(1) In computing combined business income, all intercorporate divi-
    21  dends  shall  be  eliminated,  and all other intercorporate transactions
    22  shall be deferred in a manner similar  to  the  United  States  treasury
    23  department  regulations  relating  to  intercompany  transactions  under
    24  section fifteen hundred two of the internal revenue code.
    25    (2) In computing combined capital, all  intercorporate  stockholdings,
    26  intercorporate  bills,  intercorporate  notes  receivable  and  payable,
    27  intercorporate accounts receivable and payable, and other intercorporate
    28  indebtedness, shall be eliminated.
    29    (c) Qualification for  credits,  including  any  limitations  thereon,
    30  shall  be  determined separately for each of the members of the combined
    31  group, and shall not be determined on a combined group basis, except  as
    32  otherwise  provided.   However, the credits shall be applied against the
    33  combined tax of the group. To the extent that  a  provision  of  section
    34  11-654  of  this  subchapter,  or  any  other applicable section of this
    35  subchapter,  limits  a  credit  to  the  fixed  dollar  minimum   amount
    36  prescribed in clause (iv) of subparagraph one of paragraph (e) of subdi-
    37  vision one of section 11-654 of this subchapter, such fixed dollar mini-
    38  mum amount shall be the fixed dollar minimum amount that is attributable
    39  to the designated agent of the combined group.
    40    (d)(1)  A  net  operating  loss  deduction is allowed in computing the
    41  combined business income base. Such deduction may reduce the tax on  the
    42  combined  business  income base to the higher of the tax on the combined
    43  capital or the fixed dollar minimum amount that is attributable  to  the
    44  designated  agent  of the combined group.  A combined net operating loss
    45  deduction is equal to the amount of combined net operating loss or loss-
    46  es from one or more taxable years that are carried  forward  or  carried
    47  back  to a particular taxable year. A combined net operating loss is the
    48  combined business loss incurred in a particular taxable year  multiplied
    49  by  the combined business allocation percentage for that year determined
    50  as provided in subdivision five of this section.
    51    (2) The combined net operating loss deduction and combined net operat-
    52  ing loss are also subject to the provisions contained in paragraphs  (a)
    53  through (g) of subdivision three of section 11-654.1 of this subchapter.
    54    (3)  In the case of a corporation that files a combined report, either
    55  in the year the net operating loss is incurred or in the year in which a
    56  deduction is claimed on account of the loss, the combined net  operating

        S. 4610--A                         70                         A. 6721--A
 
     1  loss deduction is determined as if the combined group is a single corpo-
     2  ration  and,  to the extent possible and not otherwise inconsistent with
     3  this subdivision, is subject to the same limitations  that  would  apply
     4  for  federal income tax purposes under the internal revenue code and the
     5  code of federal regulations as if such corporation had  filed  for  such
     6  taxable  year  a  consolidated  federal  income tax return with the same
     7  corporations included in the combined report. If a corporation  files  a
     8  combined  report,  regardless  of  whether it filed a separate return or
     9  consolidated return for federal income tax purposes, the  net  operating
    10  loss  and  net  operating  loss deduction for the combined group must be
    11  computed as if the corporation had filed a consolidated return  for  the
    12  same corporations for federal income tax purposes.
    13    (4)  In general, any net operating loss carryover from a year in which
    14  a combined report was filed shall be based on the combined net operating
    15  loss of the group of corporations filing such report. The portion of the
    16  combined loss attributable to any member of the group that files a sepa-
    17  rate report for a succeeding taxable year will be an amount bearing  the
    18  same  relation  to  the  combined loss as the net operating loss of such
    19  corporation bears to the total net operating loss of all members of  the
    20  group  having such losses to the extent that they are taken into account
    21  in computing the combined net operating loss.
    22    (d-1) A prior net operating loss conversion subtraction is allowed  in
    23  computing the combined business income base, as provided in subdivisions
    24  one and two of section 11-654.1 of this subchapter. Such subtraction may
    25  reduce  the  tax on combined business income to the higher of the tax on
    26  combined capital or the fixed dollar minimum amount that is attributable
    27  to the designated agent of the combined group.
    28    (e)(i) Any election made pursuant  to  paragraph  (b)  of  subdivision
    29  five,  paragraphs (b) and (c) of subdivision five-a of section 11-652 of
    30  this subchapter, and paragraph  (g)  of  subdivision  three  of  section
    31  11-654.1  of  this subchapter shall apply to all members of the combined
    32  group.
    33    (ii) The determination of whether or not the limitation on  investment
    34  income  provided  in  subparagraph (iii) of paragraph (a) of subdivision
    35  five of section 11-652 of this subchapter to the combined group shall be
    36  based on the investment income of the combined group, determined without
    37  regard to  interest  expenses  attributable  to  investment  capital  or
    38  investment income, and the entire net income of the combined group.
    39    (f)(1)  In  the  case  of a captive REIT or captive RIC required under
    40  this section to be included in a  combined  report,  entire  net  income
    41  shall  be computed as required under subdivision seven (in the case of a
    42  captive REIT) or subdivision eight (in the case of  a  captive  RIC)  of
    43  section  11-653  of  this  subchapter.  However, the deduction under the
    44  internal revenue code for dividends paid by the captive REIT or  captive
    45  RIC  to any member of the affiliated group that includes the corporation
    46  that directly or indirectly owns over fifty percent of the voting  stock
    47  of  the  captive REIT or captive RIC shall not be allowed.  For purposes
    48  of this subparagraph, the  term  "affiliated  group"  means  "affiliated
    49  group" as defined in section fifteen hundred four of the internal reven-
    50  ue code, but without regard to the exceptions provided for in subsection
    51  (b) of that section.
    52    (2)  In  the  case  of a combinable captive insurance company required
    53  under this section to be included  in  a  combined  report,  entire  net
    54  income  shall  be  computed  as required by subdivision eight of section
    55  11-652 of this subchapter.

        S. 4610--A                         71                         A. 6721--A
 
     1    (g) If more than one member of a combined group is eligible for any of
     2  the modifications described in paragraphs (q), (r) or (s) of subdivision
     3  eight of section 11-652  of  this  subchapter,  all  such  members  must
     4  utilize the same modification.
     5    5.  (a)  In  determining  the  business  allocation  percentage  for a
     6  combined report, the receipts, net income, net gains and other items  of
     7  each  member  of the combined group, whether or not they are a taxpayer,
     8  are included and intercorporate receipts, income and  gains  are  elimi-
     9  nated.  Receipts, net income, net gains and other items are sourced, and
    10  the amounts allowed in the receipts fraction are determined, as provided
    11  in section 11-654.2 of this subchapter.
    12    (b) An election made to allocate  income  and  gains  from  qualifying
    13  financial  instruments  pursuant to subparagraph one of paragraph (a) of
    14  subdivision five of section 11-654.2 of this subchapter shall  apply  to
    15  all members of the combined group.
    16    6.  Every  member  of  the combined group that is subject to tax under
    17  this article shall be jointly and  severally  liable  for  the  tax  due
    18  pursuant to a combined report.
    19    7.  Each  combined  group  shall  appoint  a  designated agent for the
    20  combined group, which shall be a taxpayer. Only the designated agent may
    21  act on behalf of the members of the combined group for matters  relating
    22  to the combined report.
    23    §  11-655  Reports.  1.  Every corporation having an officer, agent or
    24  representative within the  city,  shall  annually  on  or  before  March
    25  fifteenth,  transmit  to  the commissioner of finance a report in a form
    26  prescribed by the commissioner of finance  (except  that  a  corporation
    27  which  reports  on  the basis of a fiscal year shall transmit its report
    28  within two and one-half months after  the  close  of  its  fiscal  year)
    29  setting  forth  such  information  as  the  commissioner  of finance may
    30  prescribe, and every taxpayer which ceases to do business in the city or
    31  to be subject to the tax imposed by this subchapter  shall  transmit  to
    32  the commissioner of finance a report on the date of such cessation or at
    33  such other time as the commissioner of finance may require covering each
    34  year or period for which no report was theretofore filed. Every taxpayer
    35  shall also transmit such other reports and such facts and information as
    36  the  commissioner  of  finance may require in the administration of this
    37  subchapter. The commissioner of finance may grant a reasonable extension
    38  of time for filing reports whenever good cause exists.
    39    An automatic extension of six months for  the  filing  of  its  annual
    40  report  shall  be allowed any taxpayer if, within the time prescribed by
    41  the preceding paragraph, whichever is applicable,  such  taxpayer  files
    42  with  the  commissioner  of finance an application for extension in such
    43  form as the commissioner of finance may prescribe by regulation and pays
    44  on or before the date of such filing the amount  properly  estimated  as
    45  its tax.
    46    2.  Every  report  shall  have  annexed thereto a certification by the
    47  president,  vice-president,  treasurer,   assistant   treasurer,   chief
    48  accounting officer or another officer of the taxpayer duly authorized so
    49  to  act to the effect that the statements contained therein are true. In
    50  the case of an association, within the meaning  of  paragraph  three  of
    51  section (a) of section seventy-seven hundred one of the internal revenue
    52  code,  a  publicly-traded  partnership  treated  as  a  corporation  for
    53  purposes of the internal revenue code pursuant to section  seventy-seven
    54  hundred four thereof and any business conducted by a trustee or trustees
    55  wherein  interest  or  ownership  is  evidenced by certificates or other
    56  written instruments, such certification shall be made by any person duly

        S. 4610--A                         72                         A. 6721--A
 
     1  authorized so to act on  behalf  of  such  association,  publicly-traded
     2  partnership or business. The fact that an individual's name is signed on
     3  a  certification  of  the report shall be prima facie evidence that such
     4  individual is authorized to sign and certify the report on behalf of the
     5  corporation.  Blank  forms  of reports shall be furnished by the commis-
     6  sioner of finance, on application, but failure to secure  such  a  blank
     7  shall  not  release  any  corporation  from the obligation of making any
     8  report required by this subchapter.
     9    2-a.  The  commissioner  of  finance  may  prescribe  regulations  and
    10  instructions  requiring  returns  of information to be made and filed in
    11  conjunction with the reports required  to  be  filed  pursuant  to  this
    12  section,  relating  to payments made to shareholders owning, directly or
    13  indirectly, individually or in the aggregate, more than fifty percent of
    14  the issued capital stock of the taxpayer, where such payments are treat-
    15  ed as payments of interest in  the  computation  of  entire  net  income
    16  reported on such reports.
    17    3.  If the amount of taxable income or other basis of tax for any year
    18  of any taxpayer as returned to the United States treasury department  or
    19  the  New  York  state commissioner of taxation and finance is changed or
    20  corrected by the commissioner of internal revenue or  other  officer  of
    21  the  United  States  or  the New York state commissioner of taxation and
    22  finance or other competent authority, or  where  a  renegotiation  of  a
    23  contract  or subcontract with the United States or the state of New York
    24  results in a change in taxable income or other basis of tax, or where  a
    25  recovery  of a war loss results in a computation or recomputation of any
    26  tax imposed by the United States or the state  of  New  York,  or  if  a
    27  taxpayer,  pursuant to subsection (d) of section sixty-two hundred thir-
    28  teen of the internal revenue code, executes a notice of  waiver  of  the
    29  restrictions provided in subsection (a) of said section, or if a taxpay-
    30  er, pursuant to subsection (f) of section one thousand eighty-one of the
    31  tax  law,  executes  a  notice of waiver of the restrictions provided in
    32  subsection (c) of said section, such taxpayer shall report such  changed
    33  or  corrected  taxable  income  or other basis of tax, or the results of
    34  such renegotiation, or  such  computation,  or  recomputation,  or  such
    35  execution of such notice of waiver and the changes or corrections of the
    36  taxpayer's  federal  or  New York state taxable income or other basis of
    37  tax on which it is based, within ninety  days  (or  one  hundred  twenty
    38  days,  in  the  case  of  a taxpayer making a combined report under this
    39  subchapter for such year) after such execution  or  the  final  determi-
    40  nation  of  such change or correction or renegotiation, or such computa-
    41  tion, or recomputation, or as required by the commissioner  of  finance,
    42  and shall concede the accuracy of such determination or state wherein it
    43  is  erroneous.  The  allowance of a tentative carryback adjustment based
    44  upon a net operating loss carryback or net capital loss carryback pursu-
    45  ant to section sixty-four hundred eleven of the  internal  revenue  code
    46  shall  be treated as a final determination for purposes of this subdivi-
    47  sion. Any taxpayer filing an amended return with such  department  shall
    48  also file within ninety days (or one hundred twenty days, in the case of
    49  a taxpayer making a combined report under this subchapter for such year)
    50  thereafter an amended report with the commissioner of finance.
    51    4.  The  provisions of section 11-654.3 of this subchapter shall apply
    52  to combined reports.
    53    5. In case it shall appear to the commissioner  of  finance  that  any
    54  agreement,  understanding or arrangement exists between the taxpayer and
    55  any other corporation or any person or firm, whereby the activity, busi-
    56  ness, income or capital of the taxpayer within the city is improperly or

        S. 4610--A                         73                         A. 6721--A
 
     1  inaccurately reflected, the commissioner of finance  is  authorized  and
     2  empowered,  in its discretion and in such manner as it may determine, to
     3  adjust items of income, deductions and capital, and to eliminate  assets
     4  in  computing  any  allocation  percentage provided only that any income
     5  directly traceable thereto be also excluded from entire net  income,  so
     6  as  equitably  to determine the tax. Where (a) any taxpayer conducts its
     7  activity or business under any agreement, arrangement  or  understanding
     8  in  such  manner as either directly or indirectly to benefit its members
     9  or stockholders, or any of them, or any person or  persons  directly  or
    10  indirectly interested in such activity or business, by entering into any
    11  transaction at more or less than a fair price which, but for such agree-
    12  ment,  arrangement  or  understanding,  might have been paid or received
    13  therefor, or (b) any taxpayer, a substantial portion  of  whose  capital
    14  stock  is  owned  either  directly or indirectly by another corporation,
    15  enters into any transaction with such other corporation on such terms as
    16  to create an improper loss or net income, the  commissioner  of  finance
    17  may  include  in the entire net income of the taxpayer the fair profits,
    18  which, but for such agreement, arrangement or understanding, the taxpay-
    19  er might have derived from such transaction. Where  any  taxpayer  owns,
    20  directly  or indirectly, more than fifty percent of the capital stock of
    21  another corporation subject to tax under section fifteen  hundred  two-a
    22  of the tax law and fifty percent or less of whose gross receipts for the
    23  taxable  year  consist  of  premiums,  the  commissioner  of finance may
    24  include in the entire net income of the taxpayer, as a  deemed  distrib-
    25  ution,  the amount of the net income of the other corporation that is in
    26  excess of its net premium income.
    27    6. An action may be brought at any time by the corporation counsel  at
    28  the  instance  of  the  commissioner  of finance to compel the filing of
    29  reports due under this subchapter.
    30    7. Reports shall be preserved for five years, and thereafter until the
    31  commissioner of finance orders them to be destroyed.
    32    8. Where the New York  state  commissioner  of  taxation  and  finance
    33  changes  or corrects a taxpayer's sales and compensating use tax liabil-
    34  ity with respect to the purchase or use of items for which  a  sales  or
    35  compensating  use  tax credit against the tax imposed by this subchapter
    36  was claimed, the taxpayer shall report such change or correction to  the
    37  commissioner of finance within ninety days of the final determination of
    38  such  change  or  correction,  or  as  required  by  the commissioner of
    39  finance, and shall concede the accuracy of such determination  or  state
    40  wherein it is erroneous. Any taxpayer filing an amended return or report
    41  relating  to  the  purchase  or use of such items shall also file within
    42  ninety days thereafter a copy of such amended return or report with  the
    43  commissioner of finance.
    44    §  11-656 Payment and lien of tax. 1. To the extent the tax imposed by
    45  section 11-653 of this subchapter shall not have  been  previously  paid
    46  pursuant to section 11-658 of this subchapter:
    47    (a)  such tax, or the balance thereof, shall be payable to the commis-
    48  sioner of finance in full at the time  the  report  is  required  to  be
    49  filed; and
    50    (b)  such  tax,  or the balance thereof, imposed on any taxpayer which
    51  ceases to do business in the city or to be subject to the tax imposed by
    52  this subchapter shall be payable to the commissioner of finance  at  the
    53  time  the  report  is  required to be filed; all other taxes of any such
    54  taxpayer, which pursuant to the foregoing  provisions  of  this  section
    55  would  otherwise  be  payable  subsequent  to  the  time  such report is
    56  required to be filed, shall nevertheless be payable at such time.

        S. 4610--A                         74                         A. 6721--A
 
     1    If the taxpayer, within the time prescribed by section 11-655 of  this
     2  subchapter,  shall  have  applied  for an automatic extension of time to
     3  file its annual report and  shall  have  paid  to  the  commissioner  of
     4  finance  on or before the date such application is filed an amount prop-
     5  erly  estimated  as provided by said section, the only amount payable in
     6  addition to the tax shall be interest at the underpayment  rate  set  by
     7  the  commissioner of finance pursuant to section 11-687 of this chapter,
     8  or, if no rate is set, at the rate of seven  and  one-half  percent  per
     9  annum  upon  the amount by which the tax, or the portion thereof payable
    10  on or before the date the report was required to be filed,  exceeds  the
    11  amount so paid. For purposes of the preceding sentence:
    12    (1)  an  amount  so  paid  shall be deemed properly estimated if it is
    13  either: (i) not less than ninety percent of the tax  as  finally  deter-
    14  mined,  or (ii) not less than the tax shown on the taxpayer's report for
    15  the preceding taxable year, if such preceding year was a taxable year of
    16  twelve months; and
    17    (2) the time when a report is required to be filed shall be determined
    18  without regard to any extension of time for filing such report.
    19    2. The commissioner of finance may grant  a  reasonable  extension  of
    20  time for payment of any tax imposed by this subchapter under such condi-
    21  tions as the commissioner of finance deems just and proper.
    22    3. Intentionally omitted.
    23    §  11-657  Declaration  of estimated tax. 1. Every taxpayer subject to
    24  the tax imposed by section 11-653 of this subchapter shall make a decla-
    25  ration of its estimated tax for the current privilege period, containing
    26  such information as the commissioner of finance may prescribe  by  regu-
    27  lations  or  instructions,  if  such  estimated  tax  can  reasonably be
    28  expected to exceed one thousand dollars.
    29    2. The term "estimated tax" means the amount which  a  taxpayer  esti-
    30  mates to be the tax imposed by section 11-653 of this subchapter for the
    31  current  privilege  period, less the amount which it estimates to be the
    32  sum of any credits allowable against the tax.
    33    3. In the case of a taxpayer which reports on the basis of a  calendar
    34  year,  a  declaration  of estimated tax shall be filed on or before June
    35  fifteenth of the current privilege period, except that if  the  require-
    36  ments of subdivision one of this section are first met:
    37    (a)  after May thirty-first and before September first of such current
    38  privilege period, the declaration shall be filed on or before  September
    39  fifteenth; or
    40    (b)  after  August  thirty-first  and  before  December  first of such
    41  current privilege period, the declaration shall be filed  on  or  before
    42  December fifteenth.
    43    4. A taxpayer may amend a declaration under regulations of the commis-
    44  sioner of finance.
    45    5.  If,  on or before February fifteenth of the succeeding year in the
    46  case of a taxpayer which reports on the basis  of  a  calendar  year,  a
    47  taxpayer  files  its  report  for  the year for which the declaration is
    48  required, and pays therewith the balance, if any, of the full amount  of
    49  the tax shown to be due on the report:
    50    (a)  such report shall be considered as its declaration if no declara-
    51  tion is required to be filed during the  calendar  or  fiscal  year  for
    52  which  the  tax was imposed, but is otherwise required to be filed on or
    53  before December fifteenth pursuant to subdivision three of this section;
    54  and
    55    (b) such report shall be considered  as  the  amendment  permitted  by
    56  subdivision  four  of  this  section  to  be filed on or before December

        S. 4610--A                         75                         A. 6721--A
 
     1  fifteenth if the tax shown on the report is greater than  the  estimated
     2  tax shown on a declaration previously made.
     3    6.  This  section  shall  apply  to privilege periods of twelve months
     4  other than a calendar year by the substitution of  the  months  of  such
     5  fiscal year for the corresponding months specified in this section.
     6    7.  If  the  privilege  period  for  which a tax is imposed by section
     7  11-653 of this subchapter is less than  twelve  months,  every  taxpayer
     8  required to make a declaration of estimated tax for such privilege peri-
     9  od  shall  make such a declaration in accordance with regulations of the
    10  commissioner of finance.
    11    8. The commissioner of finance may grant  a  reasonable  extension  of
    12  time,  not  to  exceed  three  months, for the filing of any declaration
    13  required pursuant to this section, on such terms and  conditions  as  it
    14  may require.
    15    §  11-658  Payments  on  account  of  estimated tax. 1. Every taxpayer
    16  subject to the tax imposed by section 11-653 of  this  subchapter  shall
    17  pay  with  the  report  required to be filed for the preceding privilege
    18  period, if any, or with an application for extension  of  the  time  and
    19  filing  such  report,  an  amount equal to twenty-five per centum of the
    20  preceding year's tax if such preceding year's tax exceeded one  thousand
    21  dollars.
    22    2.  The  estimated  tax  with  respect to which a declaration for such
    23  privilege period is required shall be paid, in the case  of  a  taxpayer
    24  which reports on the basis of a calendar year, as follows:
    25    (a) If the declaration is filed on or before June fifteenth, the esti-
    26  mated tax shown thereon, after applying thereto the amount, if any, paid
    27  during  the  same  privilege  period pursuant to subdivision one of this
    28  section, shall be paid in three equal installments. One of such install-
    29  ments shall be paid at the time of the filing of  the  declaration,  one
    30  shall  be  paid  on  the  following  September fifteenth, and one on the
    31  following December fifteenth.
    32    (b) If the declaration is filed after June  fifteenth  and  not  after
    33  September  fifteenth of such privilege period, and is not required to be
    34  filed on or before June fifteenth of  such  period,  the  estimated  tax
    35  shown  on  such  declaration, after applying thereto the amount, if any,
    36  paid during the same privilege period pursuant  to  subdivision  one  of
    37  this  section,  shall  be  paid  in  two equal installments. One of such
    38  installments shall be paid at the time of the filing of the  declaration
    39  and one shall be paid on the following December fifteenth.
    40    (c)  If  the  declaration  is  filed after September fifteenth of such
    41  privilege period, and is not required to be filed on or before September
    42  fifteenth of such privilege period, the  estimated  tax  shown  on  such
    43  declaration,  after applying thereto the amount, if any, paid in respect
    44  to such privilege period pursuant to subdivision one  of  this  section,
    45  shall be paid in full at the time of the filing of the declaration.
    46    (d) If the declaration is filed after the time prescribed therefor, or
    47  after  the  expiration of any extension of time therefor, paragraphs (b)
    48  and (c) of this subdivision shall not apply, and there shall be paid  at
    49  the  time of such filing all installments of estimated tax payable at or
    50  before such time, and the remaining installments shall be  paid  at  the
    51  times  at which, and in the amounts in which, they would have been paya-
    52  ble if the declaration had been filed when due.
    53    3. If any amendment of a declaration is filed, the remaining  install-
    54  ments,  if any, shall be ratably increased or decreased (as the case may
    55  be) to reflect any increase or decrease in the estimated tax  by  reason
    56  of  such  amendment,  and  if  any  amendment  is  made  after September

        S. 4610--A                         76                         A. 6721--A
 
     1  fifteenth of the privilege period, any increase in the estimated tax  by
     2  reason thereof shall be paid at the time of making such amendment.
     3    4.  Any amount paid shall be applied after payment as a first install-
     4  ment against the estimated tax of the taxpayer for the current privilege
     5  period shown on the declaration required to be filed pursuant to section
     6  11-657 of this subchapter or, if no  declaration  of  estimated  tax  is
     7  required  to be filed by the taxpayer pursuant to such section, any such
     8  amount shall be considered a payment on account of the tax shown on  the
     9  report required to be filed by the taxpayer for such privilege period.
    10    5. Notwithstanding the provisions of section 11-679 of this chapter or
    11  of  section  three-a  of  the  general  municipal law, if an amount paid
    12  pursuant to subdivision one of this section exceeds the tax shown on the
    13  report required to be filed by the taxpayer  for  the  privilege  period
    14  during  which the amount was paid, interest shall be allowed and paid on
    15  the amount by which the amount so  paid  pursuant  to  such  subdivision
    16  exceeds  such  tax,  at  the overpayment rate set by the commissioner of
    17  finance pursuant to section 11-687 of this chapter, or, if  no  rate  is
    18  set,  at  the rate of four percent per annum from the date of payment of
    19  the amount so paid pursuant to such subdivision to the fifteenth day  of
    20  the  third  month following the close of the privilege period, provided,
    21  however, that no interest shall be allowed or paid under  this  subdivi-
    22  sion  if  the amount thereof is less than one dollar or if such interest
    23  becomes payable solely because of a carryback of a net operating loss in
    24  a subsequent privilege period.
    25    6. As used in this section, "the preceding year's tax" means  the  tax
    26  imposed  upon  the taxpayer by section 11-653 of this subchapter for the
    27  preceding calendar or fiscal year, or, for  purposes  of  computing  the
    28  first  installment  of  estimated tax when an application has been filed
    29  for extension of the time for filing the report required to be filed for
    30  such preceding calendar or fiscal year, the  amount  properly  estimated
    31  pursuant  to  section  11-657 of this subchapter as the tax imposed upon
    32  the taxpayer for such calendar or fiscal year.
    33    7. This section shall apply to a privilege period of less than  twelve
    34  months in accordance with regulations of the commissioner of finance.
    35    8.  The provisions of this section shall apply to privilege periods of
    36  twelve months other than a calendar year  by  the  substitution  of  the
    37  months  of  such  fiscal  year for the corresponding months specified in
    38  such provisions.
    39    9. The commissioner of finance may grant  a  reasonable  extension  of
    40  time,  not to exceed six months, for payment of any installment of esti-
    41  mated tax required pursuant to this section, on such  terms  and  condi-
    42  tions  as the commissioner of finance may require including the furnish-
    43  ing of a bond or other  security  by  the  taxpayer  in  an  amount  not
    44  exceeding  twice  the amount for which any extension of time for payment
    45  is granted, provided, however, that interest at  the  underpayment  rate
    46  set  by  the  commissioner of finance pursuant to section 11-687 of this
    47  subchapter, or, if no rate is set, at the rate  of  seven  and  one-half
    48  percent  per  annum for the period of the extension shall be charged and
    49  collected on the amount for which any extension of time for  payment  is
    50  granted under this subdivision.
    51    10. A taxpayer may elect to pay any installment of estimated tax prior
    52  to the date prescribed in this section for payment thereof.
    53    11. Intentionally omitted.
    54    §  11-659 Collection of taxes. Every foreign corporation (other than a
    55  moneyed corporation) subject  to  the  provisions  of  this  subchapter,
    56  except  a  corporation  having  authority  to  do  business by virtue of

        S. 4610--A                         77                         A. 6721--A
 
     1  section thirteen hundred five of the  business  corporation  law,  shall
     2  file  in  the  department  of  state a certificate of designation in its
     3  corporate name, signed and acknowledged by its president or a  vice-pre-
     4  sident  or  its secretary or treasurer, under its corporate seal, desig-
     5  nating the secretary of state as its agent  upon  whom  process  in  any
     6  action  provided for by this subchapter may be served within this state,
     7  and setting forth an address to which the secretary of state shall  mail
     8  a  copy  of any such process against the corporation which may be served
     9  upon the secretary of state. In case any  such  corporation  shall  have
    10  failed  to  file  such certificate of designation, it shall be deemed to
    11  have designated the secretary of state as its agent upon whom such proc-
    12  ess against it may be served; and until  a  certificate  of  designation
    13  shall  have  been filed the corporation shall be deemed to have directed
    14  the secretary of state to mail copies of process served upon him or  her
    15  to  the  corporation  at its last known office address within or without
    16  the state. When a certificate of designation  has  been  filed  by  such
    17  corporation  the  secretary of state shall mail copies of process there-
    18  after served upon the secretary of state to the  address  set  forth  in
    19  such  certificate.  Any  such corporation, from time to time, may change
    20  the address to which the secretary of state is directed to  mail  copies
    21  of  process, by filing a certificate to that effect executed, signed and
    22  acknowledged in like manner as a certificate of  designation  as  herein
    23  provided.  Service  of  process  upon  any  such corporation or upon any
    24  corporation having  a  certificate  of  authority  under  section  eight
    25  hundred five of the limited liability company law or having authority to
    26  do  business  by virtue of section thirteen hundred five of the business
    27  corporation law, in any action commenced at any  time  pursuant  to  the
    28  provisions  of  this  subchapter,  may be made by either: (a) personally
    29  delivering to and leaving with the secretary of state, a  deputy  secre-
    30  tary of state or with any person authorized by the secretary of state to
    31  receive  such  service  duplicate  copies  thereof  at the office of the
    32  department of state in the city of Albany, in which event the  secretary
    33  of  state  shall  forthwith  send  by  registered  mail,  return receipt
    34  requested, one of such copies to the corporation at the  address  desig-
    35  nated  by  it  or at its last known office address within or without the
    36  state, or (b) personally delivering to and leaving with the secretary of
    37  state, a deputy secretary of state or with any person authorized by  the
    38  secretary of state to receive such service, a copy thereof at the office
    39  of  the  department  of  state in the city of Albany and by delivering a
    40  copy thereof to, and leaving such copy with, the president,  vice-presi-
    41  dent, secretary, assistant secretary, treasurer, assistant treasurer, or
    42  cashier  of  such  corporation,  or the officer performing corresponding
    43  functions under another name, or a director or managing  agent  of  such
    44  corporation,  personally  without  the  state.    Proof of such personal
    45  service without the state shall be filed with the clerk of the court  in
    46  which  the  action is pending within thirty days after such service, and
    47  such service shall be complete ten days after proof thereof is filed.
    48    § 11-660 Limitations of time. The provisions of the civil practice law
    49  and rules relative to the limitation of time enforcing  a  civil  remedy
    50  shall  not  apply  to  any proceeding or action taken to levy, appraise,
    51  assess, determine or enforce  the  collection  of  any  tax  or  penalty
    52  prescribed by this subchapter, provided, however, that as to real estate
    53  in  the  hands of persons who are owners thereof who would be purchasers
    54  in good faith but for such tax or penalty and as to  the  lien  on  real
    55  estate of mortgages held by persons who would be holders thereof in good
    56  faith  but  for  such tax or penalty, all such taxes and penalties shall

        S. 4610--A                         78                         A. 6721--A
 
     1  cease to be a lien on such real estate as  against  such  purchasers  or
     2  holders  after  the  expiration  of  ten  years from the date such taxes
     3  became due and payable. The limitations herein provided  for  shall  not
     4  apply to any transfer from a corporation to a person or corporation with
     5  intent  to  avoid  payment  of  any taxes, or where with like intent the
     6  transfer is made to a grantee corporation,  or  any  subsequent  grantee
     7  corporation,  controlled  by  such grantor or which has any community of
     8  interest with it, either through stock ownership or otherwise.
     9    § 2. Subparagraph (A) of paragraph 2 of  subdivision  (f)  of  section
    10  11-508  of  the administrative code of the city of New York, as added by
    11  chapter 485 of the laws of 1994, is amended to read as follows:
    12    (A) In the case of an issuer or obligor subject to tax under  subchap-
    13  ter  two or three-A of chapter six of this title, or subject to tax as a
    14  utility corporation under chapter eleven of  this  title,  the  issuer's
    15  allocation percentage shall be the percentage of the appropriate measure
    16  (as  defined  hereinafter)  which is required to be allocated within the
    17  city on the report or reports, if any, required of the issuer or obligor
    18  under chapter six or eleven of this title for the  preceding  year.  The
    19  appropriate  measure  referred to in the preceding sentence shall be: in
    20  the case of an issuer or obligor subject to subchapter two or three-A of
    21  chapter six of this title, entire capital; and in the case of an  issuer
    22  or  obligor  subject to chapter eleven of this title as a utility corpo-
    23  ration, gross income.
    24    § 3. The administrative code of the city of New  York  is  amended  by
    25  adding a new section 11-602.1 to read as follows:
    26    § 11-602.1 Application of this subchapter. 1. For taxable years begin-
    27  ning  on  or  after January first, two thousand fifteen, the tax imposed
    28  under this subchapter shall only apply to a corporation that (a) has  an
    29  election  in  effect  under  subsection  (a) of section thirteen hundred
    30  sixty-two of the internal revenue code of 1986, as amended, or (b) is  a
    31  qualified  subchapter S subsidiary within the meaning of paragraph three
    32  of subsection (b) of section thirteen hundred sixty-one of the  internal
    33  revenue code of 1986, as amended.
    34    2. For taxable years beginning on or after January first, two thousand
    35  fifteen,  the  tax  imposed  under  this subchapter shall not apply to a
    36  corporation that is not described in subdivision  one  of  this  section
    37  except to the extent provided in subchapter three-A of this chapter.
    38    3.  Cross-Reference.  For  the  taxation  of corporations that are not
    39  described in subdivision one of this section, that  were  taxable  under
    40  this  subchapter for tax years beginning before January first, two thou-
    41  sand fifteen, see subchapter three-A of this chapter.
    42    § 4. Subdivision (a) of section 11-639 of the administrative  code  of
    43  the city of New York is amended to read as follows:
    44    (a) (1) For the privilege of doing business in the city in a corporate
    45  or  organized  capacity,  a  tax,  computed under section 11-643 of this
    46  part, is hereby annually imposed on every banking corporation  for  each
    47  of its taxable years, or any part thereof, beginning on or after January
    48  first,  nineteen  hundred  seventy-three  and  before January first, two
    49  thousand fifteen.
    50    (2) For the privilege of doing business in the city in a corporate  or
    51  organized  capacity,  a tax, computed under section 11-643 of this part,
    52  is hereby annually imposed on every banking corporation for each taxable
    53  year, or any part thereof, commencing on or  after  January  first,  two
    54  thousand  fifteen, where such banking corporation (i) has an election in
    55  effect under subsection (a) of section thirteen hundred sixty-two of the
    56  internal revenue code of 1986,  as  amended,  or  (ii)  is  a  qualified

        S. 4610--A                         79                         A. 6721--A
 
     1  subchapter  S  subsidiary  within  the  meaning  of  paragraph  three of
     2  subsection (b) of section thirteen hundred  sixty-one  of  the  internal
     3  revenue code of 1986, as amended.
     4    § 5. Section 11-639 of the administrative code of the city of New York
     5  is amended by adding a new subdivision (d) to read as follows:
     6    (d)  Cross-Reference.  For  the  taxation of corporations that are not
     7  described in paragraph two of subdivision (a) of this section, that were
     8  taxable under this subchapter for tax  years  beginning  before  January
     9  first, two thousand fifteen, see subchapter three-A of this chapter.
    10    §  6. Paragraph 2 of subdivision (b) of section 11-641 of the adminis-
    11  trative code of the city of New York, as amended by chapter 525  of  the
    12  laws of 1988, is amended to read as follows:
    13    (2)  taxes  on or measured by income or profits paid or accrued within
    14  the taxable year to the United States, or any of its possessions  or  to
    15  any  foreign country and taxes imposed under article nine, nine-A, thir-
    16  teen-A or thirty-two of the tax law as in  effect  on  December  thirty-
    17  first,  two  thousand  fourteen  and  any tax imposed under this part or
    18  subchapter two or three-A of this chapter;
    19    § 7. Subdivision 1 and paragraph  (a)  of  subdivision  2  of  section
    20  11-671 of the administrative code of the city of New York are amended to
    21  read as follows:
    22    1.  General.  The  provisions  of  this  subchapter shall apply to the
    23  administration of and the procedures with respect to the  taxes  imposed
    24  by subchapters two, three, three-A and four of this chapter.
    25    (a)  the  term  "named  subchapters"  means  subchapters two, three or
    26  three-A and four of this chapter;
    27    § 8. Paragraph (a) of subdivision 5 and subdivisions 7,  8  and  9  of
    28  section 11-672 of the administrative code of the city of New York, para-
    29  graph  (a)  of  subdivision  5  as amended by chapter 525 of the laws of
    30  1988, and paragraph (b) of subdivision 9 as amended by  chapter  808  of
    31  the laws of 1992, are amended to read as follows:
    32    (a) If the taxpayer fails to comply with subchapter two [or], three or
    33  three-A of this chapter in not reporting a change or correction or rene-
    34  gotiation,  or  computation  or  recomputation  of  tax,  increasing  or
    35  decreasing its federal or New York  state  taxable  income,  alternative
    36  minimum  taxable income or other basis of tax as reported on its federal
    37  or New York state income tax return or in  not  reporting  a  change  or
    38  correction  or  renegotiation,  or  computation or recomputation of tax,
    39  which is treated in the same manner as  if  it  were  a  deficiency  for
    40  federal  or  New  York  state  income  tax  purposes or in not filing an
    41  amended return or in not reporting the execution of a notice  of  waiver
    42  executed  pursuant to subsection (d) of section six thousand two hundred
    43  thirteen of the internal revenue code or pursuant to subdivision (f)  of
    44  section  one thousand eighty-one of the tax law, instead of the mode and
    45  time of assessment provided for in subdivision two of this section,  the
    46  commissioner  of  finance  may  assess  a  deficiency  based  upon  such
    47  increased or decreased federal or New York state taxable income,  alter-
    48  native  minimum  taxable  income or other basis of tax by mailing to the
    49  taxpayer a notice of additional tax due specifying  the  amount  of  the
    50  deficiency,  and  such deficiency, together with the interest, additions
    51  to tax and penalties stated in such notice, shall be deemed assessed  on
    52  the date such notice is mailed unless within thirty days after the mail-
    53  ing  of  such notice a report of the federal or New York state change or
    54  correction or renegotiation, or computation or recomputation of tax,  or
    55  an  amended  return,  where  such  return was required by subchapter two
    56  [or], three or three-A, is filed  accompanied  by  a  statement  showing

        S. 4610--A                         80                         A. 6721--A
 
     1  wherein  such federal or New York state determination and such notice of
     2  additional tax due are erroneous.
     3    7.  Two  or  more  corporations.  In  case  of a combined return under
     4  subchapter two or three-A or  a  consolidated  return  under  subchapter
     5  three  of  two  or  more  corporations,  the commissioner of finance may
     6  determine a deficiency of tax  under  subchapter  two  [or  subchapter],
     7  three or three-A of this chapter with respect to the entire tax due upon
     8  such  return  against  any  taxpayer  included therein. In the case of a
     9  taxpayer which might have been included in such a return under  subchap-
    10  ter  two  [or subchapter], three or three-A of this chapter when the tax
    11  was originally reported, the commissioner of  finance  may  determine  a
    12  deficiency  of  tax  under subchapter two [or], three or three-A of this
    13  chapter against such taxpayer and  against  any  other  taxpayers  which
    14  might have been included in such a return.
    15    8.  Deficiency  defined.  For the purposes of this subchapter, a defi-
    16  ciency means the amount of the tax imposed by the named subchapters,  or
    17  any  of  them, less: (a) the amount shown as the tax upon the taxpayer's
    18  return (whether the return was made or the tax computed by it or by  the
    19  commissioner  of  finance), and less (b) the amounts previously assessed
    20  (or collected without assessment) as  a  deficiency  and  plus  (c)  the
    21  amount  of  any  rebates.  For  the  purpose of this definition, the tax
    22  imposed by subchapter two [or], three or three-A of this chapter and the
    23  tax shown on the return shall both be determined without regard  to  any
    24  payment  of  estimated  tax; and a rebate means so much of an abatement,
    25  credit, refund or other repayment (whether or not erroneous) as was made
    26  on the ground that the amounts entering into the definition of  a  defi-
    27  ciency showed a balance in favor of the taxpayer.
    28    9.  Exception where change or correction of sales and compensating use
    29  tax liability is not reported.
    30    (a) If a taxpayer fails to comply with subchapter two  or  three-A  of
    31  this  chapter  in  not reporting a change or correction of its sales and
    32  compensating use tax liability or in not filing a  copy  of  an  amended
    33  return  or report relating to its sales and compensating use tax liabil-
    34  ity, instead of the mode and time of assessment provided for in subdivi-
    35  sion two of this section, the commissioner of finance may assess a defi-
    36  ciency based upon such changed or corrected sales and  compensating  use
    37  tax  liability,  as same relates to credits claimed under subchapter two
    38  or three-A of this chapter, by mailing to the taxpayer a notice of addi-
    39  tional tax due specifying the amount of the deficiency, and  such  defi-
    40  ciency, together with the interest, additions to tax and penalties stat-
    41  ed  in  such notice, shall be deemed assessed on the date such notice is
    42  mailed unless within thirty days after the  mailing  of  such  notice  a
    43  report  of the state change or correction or a copy of an amended return
    44  or report, where such copy was required by subchapter two or three-A, is
    45  filed accompanied by a statement showing  wherein  such  state  determi-
    46  nation and such notice of additional tax due are erroneous.
    47    (b)  Such notice shall not be considered as a notice of deficiency for
    48  the purposes of this section, subdivision six of section 11-678  (limit-
    49  ing  credits  or refunds after petition to the tax appeals tribunal), or
    50  subdivision two of section 11-680 (authorizing the filing of a  petition
    51  with  the  tax  appeals  tribunal  based on a notice of deficiency), nor
    52  shall such assessment or the collection thereof  be  prohibited  by  the
    53  provisions of subdivision three of this section.
    54    (c)  If  the  taxpayer has terminated its existence, a notice of addi-
    55  tional tax due may be mailed to its last known address in or out of  the
    56  city,  and such notice shall be sufficient for purposes of this subchap-

        S. 4610--A                         81                         A. 6721--A
 
     1  ter. If the commissioner of finance has received notice that a person is
     2  acting for the taxpayer in a fiduciary capacity, a copy of  such  notice
     3  shall also be mailed to the fiduciary named in such notice.
     4    § 9. Subdivisions 1 and 3 of section 11-673 of the administrative code
     5  of the city of New York, the first undesignated paragraph of subdivision
     6  1  as amended by chapter 808 of the laws of 1992, are amended to read as
     7  follows:
     8    1. Assessment date. The amount of tax which a return shows to be  due,
     9  or the amount of tax which a return would have shown to be due but for a
    10  mathematical error, shall be deemed to be assessed on the date of filing
    11  of the return (including any amended return showing an increase of tax).
    12  If  a notice of deficiency has been mailed, the amount of the deficiency
    13  shall be deemed to be assessed on the date specified in subdivision  two
    14  of  section  11-672  of this subchapter if no petition is both served on
    15  the commissioner of finance and filed with the tax appeals tribunal,  or
    16  if a petition is so served and filed, then upon the date when a decision
    17  of  the  tax  appeals tribunal establishing the amount of the deficiency
    18  becomes final. If a report  or  an  amended  return  filed  pursuant  to
    19  subchapter two [or], three or three-A of this chapter concedes the accu-
    20  racy  of  a federal or New York state adjustment or change or correction
    21  or renegotiation or computation or recomputation of tax, any  deficiency
    22  in  tax  under  subchapter  two  [or],  three or three-A of this chapter
    23  resulting therefrom shall be deemed to be assessed on the date of filing
    24  such report or amended return,  and  such  assessment  shall  be  timely
    25  notwithstanding section 11-674 of this chapter.
    26    If  a report filed pursuant to subchapter two or three-A of this chap-
    27  ter concedes the accuracy of a state change or correction of  sales  and
    28  compensating  use  tax liability, any deficiency in tax under subchapter
    29  two or three-A of this  chapter  resulting  therefrom  shall  be  deemed
    30  assessed on the date of filing such report, and such assessment shall be
    31  timely notwithstanding section 11-674 of this chapter.
    32    If  a  notice of additional tax due, as prescribed in subdivision five
    33  of section 11-672 of this chapter, has been mailed, the  amount  of  the
    34  deficiency  shall be deemed to be assessed on the date specified in such
    35  subdivision unless within thirty days after the mailing of such notice a
    36  report of the  federal  or  New  York  state  adjustment  or  change  or
    37  correction  or  renegotiation or computation or recomputation of tax, or
    38  an amended return, where such return  was  required  by  subchapter  two
    39  [or], three or three-A of this chapter, is filed accompanied by a state-
    40  ment  showing  wherein  such federal or New York state determination and
    41  such notice of additional tax due are erroneous.
    42    If a notice of additional tax due, as prescribed in  subdivision  nine
    43  of section 11-672 of this subchapter, has been mailed, the amount of the
    44  deficiency  shall be deemed to be assessed on the date specified in such
    45  subdivision unless within thirty days after the mailing of such notice a
    46  report of the state change or correction, or a copy of an amended return
    47  or report, where such copy was required by subchapter two or three-A  of
    48  this  chapter,  is filed accompanied by a statement showing wherein such
    49  state determination and such notice of additional tax due are erroneous.
    50    Any amount paid as a tax or in respect of a tax,  other  than  amounts
    51  paid  as  estimated tax, shall be deemed to be assessed upon the date of
    52  receipt of payment notwithstanding any other provisions.
    53    3. Estimated tax. No unpaid amount of estimated tax  under  subchapter
    54  two [or], three or three-A of this chapter shall be assessed.
    55    §  10.  Subdivisions  3  and 4 of section 11-674 of the administrative
    56  code of the city of New York, subparagraph 3 of paragraph (a) and  para-

        S. 4610--A                         82                         A. 6721--A
 
     1  graph (c) of subdivision 3 as amended by chapter 525 of the laws of 1988
     2  and  paragraph (d) of subdivision 3 as amended by local law number 57 of
     3  the city of New York for the year 2001, are amended to read as follows:
     4    3. Exceptions.
     5    (a) Assessment at any time. The tax may be assessed at any time if:
     6    (1) no return is filed,
     7    (2) a false or fraudulent return is filed with intent to evade tax,
     8    (3) in the case of the tax imposed under subchapter two [or], three or
     9  three-A  of this chapter, the taxpayer fails to file a report or amended
    10  return required thereunder, in respect of an  increase  or  decrease  in
    11  federal  or  New  York state taxable income, alternative minimum taxable
    12  income or other basis of tax or federal or New York  state  tax,  or  in
    13  respect  of a change or correction or renegotiation or in respect of the
    14  execution of a notice of waiver report of which is required  thereunder,
    15  or  computation  or  recomputation  of tax, which is treated in the same
    16  manner as if it were a deficiency for federal or New York  state  income
    17  tax purposes, or
    18    (4)  in the case of the tax imposed under subchapter two or three-A of
    19  this chapter, the taxpayer fails to file a report or amended  return  or
    20  report  required  thereunder,  in  respect  of a change or correction of
    21  sales and compensating use tax liability, relating to  the  purchase  or
    22  use  of  items  for which a sales or compensating use tax credit against
    23  the tax imposed by subchapter two or three-A was claimed.
    24    (b) Extension by agreement. Where, before the expiration of  the  time
    25  prescribed  in  this section for the assessment of tax, both the commis-
    26  sioner of finance and the taxpayer have  consented  in  writing  to  its
    27  assessment after such time, the tax may be assessed at any time prior to
    28  the  expiration of the period agreed upon. The period so agreed upon may
    29  be extended by subsequent agreements in writing made before the  expira-
    30  tion of the period previously agreed upon.
    31    (c)  Report  of federal or New York state change or correction. In the
    32  case of the tax imposed under subchapter two [or], three or  three-A  of
    33  this  chapter, if the taxpayer files a report or amended return required
    34  thereunder, in respect of an increase or decrease in federal or New York
    35  state taxable income, alternative minimum taxable income or other  basis
    36  of  tax  or  federal or New York state tax, or in respect of a change or
    37  correction or renegotiation, or in respect of the execution of a  notice
    38  of  waiver  report  of  which  is required thereunder, or computation or
    39  recomputation of tax, which is treated in the same manner as if it  were
    40  a  deficiency  for  federal  or  New York state income tax purposes, the
    41  assessment (if not deemed to have been  made  upon  the  filing  of  the
    42  report or amended return) may be made at any time within two years after
    43  such  report  or amended return was filed. The amount of such assessment
    44  of tax shall not exceed the amount of the increase in city tax attribut-
    45  able to such federal or New York state change or correction or renegoti-
    46  ation, or computation or recomputation of tax. The  provisions  of  this
    47  paragraph shall not affect the time within which or the amount for which
    48  an assessment may otherwise be made.
    49    (d)  Deficiency  attributable  to  carry  back. If a deficiency of tax
    50  under subchapter two or three-A of this chapter is attributable  to  the
    51  application  to taxpayer of a net operating loss carry back or a capital
    52  loss carry back, it may be assessed at any time that  a  deficiency  for
    53  the taxable year of the loss may be assessed.
    54    (e) Recovery of erroneous refund. An erroneous refund shall be consid-
    55  ered  an  underpayment  of  tax on the date made, and an assessment of a
    56  deficiency arising out of an erroneous refund may be made  at  any  time

        S. 4610--A                         83                         A. 6721--A
 
     1  within  two years from the making of the refund, except that the assess-
     2  ment may be made within five years from the making of the refund  if  it
     3  appears that any part of the refund was induced by fraud or misrepresen-
     4  tation of a material fact.
     5    (f)  Request  for  prompt assessment. The tax shall be assessed within
     6  eighteen months after written request therefor (made after the return is
     7  filed) by the taxpayer or by a fiduciary representing the taxpayer,  but
     8  not  more  than three years after the return was filed, except as other-
     9  wise provided in this subdivision and subdivision four. This subdivision
    10  shall not apply unless:
    11    (1) (A) such written request notifies the commissioner of finance that
    12  the taxpayer contemplates dissolution at or  before  the  expiration  of
    13  such  eighteen-month  period, (B) the dissolution is in good faith begun
    14  before the expiration of such eighteen-month period, (C) the dissolution
    15  is completed;
    16    (2) (A) such written request notifies the commissioner of finance that
    17  a dissolution has in good faith been begun, and (B) the  dissolution  is
    18  completed; or
    19    (3)  a dissolution has been completed at the time such written request
    20  is made.
    21    (g) Change of the allocation of taxpayer's income or  capital.    [No]
    22  (1)  With  regard  to  taxable years beginning before January first, two
    23  thousand fifteen, no change of the allocation of income or capital  upon
    24  which  the  taxpayer's  return  (or any additional assessment) was based
    25  shall be made where an assessment of tax is made during  the  additional
    26  period  of limitation under subparagraph three or four of paragraph (a),
    27  or under paragraph (c), (d) or (i); and where any  such  assessment  has
    28  been  made,  or  where  a  notice  of  deficiency has been mailed to the
    29  taxpayer on the basis of any such proposed assessment, no change of  the
    30  allocation  of  income  or  capital shall be made in a proceeding on the
    31  taxpayer's claim for refund of such  assessment  or  on  the  taxpayer's
    32  petition for redetermination of such deficiency.
    33    (2)  With regard to taxable years beginning on or after January first,
    34  two thousand fifteen, no change of the allocation of income  or  capital
    35  upon  which  the  taxpayer's  return  (or any additional assessment) was
    36  based shall be made where an assessment of tax is made during the  addi-
    37  tional  period  of  limitation under subparagraph three or four of para-
    38  graph (a) or under paragraph (c), (d) or (i), except to the extent  such
    39  assessment is based on an increase or decrease in New York state taxable
    40  income  or  other  basis  of  tax  or  New York state tax, or based on a
    41  change, correction or renegotiation of tax, or based on the execution of
    42  a notice of waiver report which is required thereunder,  or  computation
    43  or  recomputation  of  tax, which is treated in the same manner as if it
    44  were a deficiency for New York state income tax purposes; and where  any
    45  such  assessment has been made, or where a notice of deficiency has been
    46  mailed to the taxpayer on the basis of any such proposed assessment,  no
    47  change  of  the  allocation  of  income  or  capital  shall be made in a
    48  proceeding on the taxpayer's claim for refund of such assessment  or  on
    49  the  taxpayer's  petition for redetermination of such deficiency, except
    50  to the extent such assessment is based on an increase or decrease in New
    51  York state taxable income or other basis of tax or New York  state  tax,
    52  or  based on a change or correction or renegotiation of tax, or based on
    53  the execution of a notice of waiver report which is required thereunder,
    54  or computation or recomputation of tax, which is  treated  in  the  same
    55  manner  as  if  it  were  an  overpayment  for New York state income tax
    56  purposes.

        S. 4610--A                         84                         A. 6721--A
 
     1    (h) Report concerning waste  treatment  facility.  Under  the  circum-
     2  stances  described in subparagraph three of paragraph (g) of subdivision
     3  eight of section 11-602 of this chapter  or  in  subparagraph  three  of
     4  paragraph  (g)  of  subdivision eight of section 11-652 of this chapter,
     5  the  tax  may  be  assessed  within  three years after the filing of the
     6  report containing the information required by such paragraph.
     7    (i) Report of changed or corrected  sales  and  compensating  use  tax
     8  liability.  In the case of a tax imposed under subchapter two or three-A
     9  of this chapter, if the taxpayer files a report  or  amended  return  or
    10  report  required  thereunder,  in  respect  of a change or correction of
    11  sales and compensating use tax liability, the assessment (if not  deemed
    12  to have been made upon the filing of the report) may be made at any time
    13  within  two  years  after  such  report  or amended return or report was
    14  filed. The amount of such assessment of tax shall not exceed the  amount
    15  of  the  increase  in  city  tax  attributable  to  such state change or
    16  correction.  The provisions of this paragraph shall not affect the  time
    17  within  which  or  the  amount  for which an assessment may otherwise be
    18  made.
    19    4. Omission of income on return. The tax may be assessed at  any  time
    20  within  six  years  after  the return was filed if a taxpayer omits from
    21  gross income required to be reported on a return under any of the  named
    22  subchapters  an amount properly includable therein which is in excess of
    23  twenty-five per centum of the amount  of  gross  income  stated  in  the
    24  return.
    25    For the purposes of this subdivision:
    26    (a)  the term "gross income" means gross income for federal income tax
    27  purposes as reportable on a return under subchapter two  or  three-A  of
    28  this  chapter  and  "gross  earnings",  "gross income," "gross operating
    29  income" and "gross direct premiums less return premiums," as those terms
    30  are used in whichever of the named subchapters is applicable;
    31    (b) there shall not be taken into account any amount which is  omitted
    32  in  the return if such amount is disclosed in the return, or in a state-
    33  ment attached to the return, in a manner adequate to apprise the commis-
    34  sioner of finance of the nature and amount of such item.
    35    § 11. Subdivisions 2 and 5 of section  11-675  of  the  administrative
    36  code  of  the  city  of  New York, subdivision 5 as amended by local law
    37  number 57 of the city of New York for the year 2001, are amended to read
    38  as follows:
    39    2. Exception as to estimated tax. This section shall not apply to  any
    40  failure to pay estimated tax under subchapter two [or subchapter], three
    41  or three-A of this chapter.
    42    5.  Tax  reduced  by carry back. If the amount of tax under subchapter
    43  two or three-A for any taxable year is reduced by reason of a  carryback
    44  of  a  net operating loss or a capital loss, such reduction in tax shall
    45  not affect the computation of interest under this section for the period
    46  ending with the filing date for the taxable year in which the net  oper-
    47  ating  loss or capital loss arises. Such filing date shall be determined
    48  without regard to extensions of time to file.
    49    § 12. Subdivision 3 of section 11-676 of the  administrative  code  of
    50  the  city of New York, as amended by chapter 201 of the laws of 2009, is
    51  amended to read as follows:
    52    3. Failure to file declaration or underpayment of  estimated  tax.  If
    53  any taxpayer fails to file a declaration of estimated tax under subchap-
    54  ter  two  [or], three or three-A of this chapter, or fails to pay all or
    55  any part of an amount which is applied as an  installment  against  such
    56  estimated  tax, it shall be deemed to have made an underpayment of esti-

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     1  mated tax. There shall be added to the  tax  for  the  taxable  year  an
     2  amount  at  the  underpayment  rate  set  by the commissioner of finance
     3  pursuant to section 11-687 of this subchapter, or, if no rate is set, at
     4  the  rate of seven and one-half percent per annum upon the amount of the
     5  underpayment for the period of  the  underpayment  but  not  beyond  the
     6  fifteenth  day  of  the  third  month following the close of the taxable
     7  year. The amount of the underpayment  shall  be,  with  respect  to  any
     8  installment  of  estimated  tax  computed  on the basis of the preceding
     9  year's tax, the excess of the  amount  required  to  be  paid  over  the
    10  amount,  if  any,  paid  on  or  before the last day prescribed for such
    11  payment or, with respect to any other installment of estimated tax,  the
    12  excess  of  the  amount of the installment which would be required to be
    13  paid if the estimated tax were equal to ninety percent of the tax  shown
    14  on  the  return  for the taxable year (or if no return was filed, ninety
    15  percent of the tax for such year)  over  the  amount,  if  any,  of  the
    16  installment  paid on or before the last day prescribed for such payment.
    17  In any case in which there would be no underpayment if "eighty  percent"
    18  were  substituted  for  "ninety  percent"  each place it appears in this
    19  subdivision, the addition to the tax  shall  be  equal  to  seventy-five
    20  percent  of  the  amount  otherwise determined. No underpayment shall be
    21  deemed to exist with respect to a declaration or  installment  otherwise
    22  due on or after the termination of existence of the taxpayer.
    23    §  13. The opening paragraph of subdivision 4 of section 11-676 of the
    24  administrative code of the city of  New  York  is  amended  to  read  as
    25  follows:
    26    The addition to tax under subdivision three with respect to any under-
    27  payment  of  any amount which is applied as an installment against esti-
    28  mated tax under subchapter two [or], three or three-A  of  this  chapter
    29  shall  not  be  imposed if the total amount of all payments of estimated
    30  tax made on or before the last date prescribed for the  payment  of  any
    31  such  amount equals or exceeds the amount which would have been required
    32  to be paid on or before such date if the estimated tax were whichever of
    33  the following is the least:
    34    § 14. Subdivision 13 of section 11-676 of the administrative  code  of
    35  the  city  of  New York, as added by chapter 525 of the laws of 1988, is
    36  amended to read as follows:
    37    13. Failure to file report of information relating to certain interest
    38  payments. In case of failure to file the report of information  required
    39  under  either  subdivision  two-a  of  section 11-605 of this chapter or
    40  subdivision two-a of section 11-655 of this chapter, unless it is  shown
    41  that  such  failure  is  due  to reasonable cause and not due to willful
    42  neglect, there shall be added to the  tax  a  penalty  of  five  hundred
    43  dollars.
    44    §  15.  Subdivision  2 of section 11-677 of the administrative code of
    45  the city of New York is amended to read as follows:
    46    2. Credits against estimated tax.  The  commissioner  of  finance  may
    47  prescribe  regulations providing for the crediting against the estimated
    48  tax under subchapter two [or], three or three-A of this chapter for  any
    49  taxable  year of the amount determined to be an overpayment of tax under
    50  any such subchapter for a preceding taxable year. If any overpayment  of
    51  tax  is  so claimed as a credit against estimated tax for the succeeding
    52  taxable year, such amount shall be considered as a payment  of  the  tax
    53  under  subchapter  two  [or],  three  or three-A of this chapter for the
    54  succeeding taxable year (whether or not  claimed  as  a  credit  in  the
    55  declaration  of  estimated tax for such succeeding taxable year), and no

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     1  claim for credit or refund of such overpayment shall be allowed for  the
     2  taxable year for which the overpayment arises.
     3    § 16. Subdivisions 3, 4, 9 and 11 of section 11-678 of the administra-
     4  tive  code  of the city of New York, subdivision 3 as amended by chapter
     5  241 of the laws of 1989 and subdivision 4 as amended by local law number
     6  57 of the city of New York for the year 2001, are  amended  to  read  as
     7  follows:
     8    3.  Notice of change or correction of federal or New York state income
     9  or other basis of tax. If a taxpayer is required by subchapter two [or],
    10  three or three-A of this chapter to file a report or amended  return  in
    11  respect of (a) a decrease or increase in federal or New York state taxa-
    12  ble  income, alternative minimum taxable income or other basis of tax or
    13  federal or New York state tax, (b) a federal or New York state change or
    14  correction or renegotiation, or computation  or  recomputation  of  tax,
    15  which  is  treated  in  the same manner as if it were an overpayment for
    16  federal or New York state income  tax  purposes,  claim  for  credit  or
    17  refund of any resulting overpayment of tax shall be filed by the taxpay-
    18  er  within  two  years  from  the time such report or amended return was
    19  required to be filed with the commissioner of finance. If the report  or
    20  amended return required by subchapter two [or], three or three-A of this
    21  chapter  is not filed within the ninety day period therein specified, no
    22  interest shall be payable on any claim for credit or refund of the over-
    23  payment attributable  to  the  federal  or  New  York  state  change  or
    24  correction. The amount of such credit or refund:
    25    (c)  shall,  (i) for taxable years beginning before January first, two
    26  thousand fifteen, be computed without change of the allocation of income
    27  or capital upon which the taxpayer's return (or any  additional  assess-
    28  ment) was based, and, (ii) for taxable years beginning on or after Janu-
    29  ary first, two thousand fifteen, be computed without change of the allo-
    30  cation  of  income  or  capital upon which the taxpayer's return (or any
    31  additional assessment) was based to the extent that the claim for refund
    32  arises from a decrease or increase in federal taxable  income  or  other
    33  basis of tax or federal tax, or from a federal change, correction, rene-
    34  gotiation,  computation or recomputation of tax, which is treated in the
    35  same manner as  if  it  were  an  overpayment  for  federal  income  tax
    36  purposes, and
    37    (d)  shall  not exceed the amount of the reduction in tax attributable
    38  to such decrease or increase  in  federal  or  New  York  state  taxable
    39  income,  alternative  minimum  taxable  income  or other basis of tax or
    40  federal or New York state tax or to  such  federal  or  New  York  state
    41  change  or  correction or renegotiation, or computation or recomputation
    42  of tax.
    43    This subdivision shall not affect the time within which or the  amount
    44  for  which  a  claim  for  credit or refund may be filed apart from this
    45  subdivision.
    46    4. Overpayment attributable to net operating loss carry back or  capi-
    47  tal loss carry back. A claim for credit or refund of so much of an over-
    48  payment  under subchapter two or three-A of this chapter as is attribut-
    49  able to the application to the taxpayer of a net  operating  loss  carry
    50  back or a capital loss carry back shall be filed within three years from
    51  the time the return was due (including extensions thereof) for the taxa-
    52  ble year of the loss, or within the period prescribed in subdivision two
    53  in  respect  of  such  taxable  year, or within the period prescribed in
    54  subdivision three, where applicable, in respect to the taxable  year  to
    55  which  the net operating loss or capital loss is carried back, whichever
    56  expires the latest. Where such claim for credit or refund is filed after

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     1  the expiration of the period prescribed in subdivision one or in  subdi-
     2  vision two where applicable, in respect to the taxable year to which the
     3  net  operating  loss or capital loss is carried back, the amount of such
     4  credit  or  refund shall be computed without change of the allocation of
     5  income or capital upon which the taxpayer's return  (or  any  additional
     6  assessment) was based.
     7    9.  Prepaid  tax.  For  purposes  of this section, any tax paid by the
     8  taxpayer before the last day prescribed for its payment  (including  any
     9  amount  paid  by the taxpayer as estimated tax for a taxable year) shall
    10  be deemed to have been paid by it on the  fifteenth  day  of  the  third
    11  month following the close of the taxable year the income of which is the
    12  basis  for tax under subchapter two [or], three or three-A of this chap-
    13  ter, or on the last day prescribed in part one of  subchapter  three  or
    14  subchapter  four for the filing of a final return for such taxable year,
    15  or portion thereof, determined in all cases without regard to any exten-
    16  sion of time granted the taxpayer.
    17    11. Notice of change or correction of sales and compensating  use  tax
    18  liability. (a) If a taxpayer is required by subchapter two or three-A of
    19  this  chapter  to file a report or amended return in respect of a change
    20  or correction of its sales and compensating use tax liability, claim for
    21  credit or refund of any resulting overpayment of tax shall be  filed  by
    22  the  taxpayer  within  two  years  from  the time such report or amended
    23  return was required to be filed with the commissioner  of  finance.  The
    24  amount  of such credit or refund shall be computed without change of the
    25  allocation of income or capital upon which the taxpayer's return (or any
    26  additional assessment) was based, and shall not exceed the amount of the
    27  reduction in tax attributable to such change or correction of sales  and
    28  compensating use tax liability.
    29    (b)  This  subdivision  shall  not affect the time within which or the
    30  amount for which a claim for credit or refund may be  filed  apart  from
    31  this subdivision.
    32    §  17.  Subdivisions  4  and 6 of section 11-679 of the administrative
    33  code of the city of New York, subdivision 4  as  amended  by  local  law
    34  number 57 of the city of New York for the year 2001 and subdivision 6 as
    35  amended  by  chapter  241  of  the  laws of 1989, are amended to read as
    36  follows:
    37    4. Refund of tax caused by carryback. For purposes of this section, if
    38  any overpayment of tax imposed by subchapter  two  or  three-A  of  this
    39  chapter  results from a carryback of a net operating loss or a net capi-
    40  tal loss, such overpayment shall be deemed not to have been  made  prior
    41  to the filing date for the taxable year in which such net operating loss
    42  or net capital loss arises. Such filing date shall be determined without
    43  regard  to extensions of time to file. For purposes of subdivision three
    44  of this section any overpayment described herein shall be treated as  an
    45  overpayment for the loss year and such subdivision shall be applied with
    46  respect  to such overpayment by treating the return for the loss year as
    47  not filed before claim for such overpayment is  filed.  The  term  "loss
    48  year" means the taxable year in which such loss arises.
    49    6. Cross reference. For provision with respect to interest after fail-
    50  ure  to  file a report of federal or New York state change or correction
    51  or amended return under subchapter  two  [or],  three  or  three-A,  see
    52  subdivision three of section 11-678 of this subchapter.
    53    § 18. Paragraph (d) of subdivision 4 of section 11-680 of the adminis-
    54  trative  code  of the city of New York, as amended by chapter 808 of the
    55  laws of 1992, is amended to read as follows:

        S. 4610--A                         88                         A. 6721--A
 
     1    (d) Restriction on further notices  of  deficiency.  If  the  taxpayer
     2  files  a  petition  with the tax appeals tribunal under this section, no
     3  notice of deficiency under section 11-672 of this subchapter may  there-
     4  after  be  issued  by  the  commissioner of finance for the same taxable
     5  year, except in case of fraud or with respect to an increase or decrease
     6  in federal or New York state taxable income, alternative minimum taxable
     7  income  or  other  basis  of  tax  or federal or New York state tax or a
     8  federal or New York state change  or  correction  or  renegotiation,  or
     9  computation or recomputation of tax, which is treated in the same manner
    10  as  if  it  were  a  deficiency for federal or New York state income tax
    11  purposes, required to be reported under subchapter two  [or],  three  or
    12  three-A  of this chapter or with respect to a state change or correction
    13  of sales and compensating use tax  liability  required  to  be  reported
    14  under subchapter two or three-A of this chapter.
    15    § 19. Paragraph (c) of subdivision 5 of section 11-680 of the adminis-
    16  trative  code  of the city of New York, as amended by chapter 808 of the
    17  laws of 1992, is amended to read as follows:
    18    (c) whether the petitioner is liable for any increase in a  deficiency
    19  where  such  increase is asserted initially after a notice of deficiency
    20  was mailed and a petition under this section filed, unless such increase
    21  in deficiency is the result of an increase or decrease in federal or New
    22  York state taxable income, alternative minimum taxable income  or  other
    23  basis  of  tax or federal or New York state tax or a federal or New York
    24  state change or correction or renegotiation, or computation or  recompu-
    25  tation of tax, which is treated in the same manner as if it were a defi-
    26  ciency for federal or New York state income tax purposes, required to be
    27  reported  under  subchapter  two [or], three or three-A of this chapter,
    28  and of which increase, decrease, change or correction or  renegotiation,
    29  or  computation  or  recomputation,  the  commissioner of finance had no
    30  notice at the time he or she mailed the notice of deficiency  or  unless
    31  such  increase  in deficiency is the result of a change or correction of
    32  sales and compensating use tax liability required to be  reported  under
    33  subchapter  two  or  three-A  of  this  chapter,  and of which change or
    34  correction the commissioner of finance had no notice at the time  he  or
    35  she mailed the notice of deficiency; and
    36    § 20. Paragraph (a) of subdivision 5 of section 11-687 of the adminis-
    37  trative  code  of the city of New York, as amended by chapter 201 of the
    38  laws of 2009, is amended to read as follows:
    39    (a) Authority to set interest rates. The commissioner of finance shall
    40  set the overpayment and underpayment rates of interest to be paid pursu-
    41  ant to sections 11-606, 11-608, 11-645, 11-647, 11-656, 11-658,  11-675,
    42  11-676,  and  11-679  of  this  chapter, but if no such rate or rates of
    43  interest are set, such overpayment rate shall be deemed to be set at six
    44  percent per annum and such underpayment rate shall be deemed to  be  set
    45  at  seven and one-half percent per annum. Such overpayment and underpay-
    46  ment rates shall be the rates prescribed in paragraph (b) of this subdi-
    47  vision but the underpayment rate shall not be less than seven  and  one-
    48  half  percent  per  annum.  Any  such  rates  set by the commissioner of
    49  finance shall apply to taxes, or any portion thereof,  which  remain  or
    50  become  due  or overpaid on or after the date on which such rates become
    51  effective and shall apply only with  respect  to  interest  computed  or
    52  computable  for  periods  or portions of periods occurring in the period
    53  during which such rates are in effect.
    54    § 21. Subdivision 7 of section 11-688 of the  administrative  code  of
    55  the city of New York, as added by section 22 of part M of chapter 686 of
    56  the laws of 2003, is amended to read as follows:

        S. 4610--A                         89                         A. 6721--A
 
     1    7.  Notwithstanding  anything  in subdivision one of this section, the
     2  commissioner of finance may disclose  to  a  taxpayer  or  a  taxpayer's
     3  related  member,  as  defined  in  paragraph (n) of subdivision eight of
     4  section 11-602, paragraph (n) of subdivision eight of section 11-652  or
     5  paragraph  one  of  subdivision  (q)  of section 11-641 of this chapter,
     6  information relating to any royalty paid, incurred or received  by  such
     7  taxpayer or related member to or from the other, including the treatment
     8  of  such payments by the taxpayer or the related member in any report or
     9  return transmitted to the commissioner of finance under this title.
    10    § 22. Paragraph 4 of subdivision (f) of section 11-704 of the adminis-
    11  trative code of the city of New York, as amended by chapter 831  of  the
    12  laws of 1992, is amended to read as follows:
    13    (4)  No tenant shall be authorized to receive a reduction in base rent
    14  subject to tax under the provisions of this subdivision, until the prem-
    15  ises with respect to which it is claiming a reduction in base rent  meet
    16  the requirements in the definition of eligible premises and until it has
    17  obtained  a  certification  of  eligibility  from the mayor or an agency
    18  designated by the mayor, and an annual certification from the  mayor  or
    19  an agency designated by the mayor as to the number of eligible aggregate
    20  employment  shares  maintained  by  such  tenant  which  may qualify for
    21  obtaining a base rent reduction for the tenant's tax year.  Any  written
    22  documentation submitted to the mayor or such agency or agencies in order
    23  to  obtain  any  such certification shall be deemed a written instrument
    24  for purposes of section 175.00 of the penal law.  Application  fees  for
    25  such  certifications  shall be determined by the mayor or such agency or
    26  agencies. No certification of eligibility shall be issued to an eligible
    27  business on or after July first,  nineteen  hundred  ninety-nine  unless
    28  such  business  meets the requirements of either subparagraph (a) or (b)
    29  below:
    30    (a) (1) prior to such date such  business  has  purchased,  leased  or
    31  entered  into  a  contract to purchase or lease particular premises or a
    32  parcel on which will be constructed such premises or already owned  such
    33  premises or parcel;
    34    (2)  prior to such date improvements have been commenced on such prem-
    35  ises or parcel which improvements will meet the requirements of subdivi-
    36  sion (e) of section 22-621 of this code  relating  to  expenditures  for
    37  improvements;
    38    (3) prior to such date such business submits a preliminary application
    39  for a certification of eligibility to such mayor or such agency or agen-
    40  cies  with respect to a proposed relocation to such particular premises;
    41  and
    42    (4) such business relocates to such particular premises not later than
    43  thirty-six months or, in a case in which the expenditures made  for  the
    44  improvements  specified in clause two of this subparagraph are in excess
    45  of fifty million dollars within seventy-two  months  from  the  date  of
    46  submission of such preliminary application; or
    47    (b) (1) not later than June thirtieth, two thousand two, such business
    48  has  purchased,  leased  or entered into a contract to purchase or lease
    49  particular premises wholly contained in a building in which at least  an
    50  aggregate  of  forty  per  centum  or  two hundred thousand square feet,
    51  whichever is less, of the nonresidential floor area of such building has
    52  been purchased or leased by a business or businesses which meet or  will
    53  meet the requirements of subparagraph (a) of this paragraph with respect
    54  to such floor area and which are or will become certified as eligible to
    55  receive  a credit under section 22-622 of this code with respect to such
    56  floor area;

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     1    (2) not later than June thirtieth, two  thousand  two,  such  business
     2  submits  a preliminary application for a certification of eligibility to
     3  such mayor or such agency or agencies with respect to a  proposed  relo-
     4  cation to such particular premises; and
     5    (3)  not  later  than  June thirtieth, two thousand two, such business
     6  relocates to such particular premises.
     7    Any tenant subject to a tax imposed under chapter five, or  subchapter
     8  two  [or],  three  or  three-A of chapter six, of this title obtaining a
     9  certification of eligibility pursuant  to  subdivision  (b)  of  section
    10  22-622 of the code shall be deemed to have obtained the certification of
    11  eligibility required by this paragraph.
    12    §  23. Subdivision (a) and the opening paragraph of subdivision (o) of
    13  section 22-621 of the administrative code  of  the  city  of  New  York,
    14  subdivision  (a)  as  amended by chapter 149 of the laws of 1999 and the
    15  opening paragraph of subdivision (o) as added by chapter 143 of the laws
    16  of 2004, are amended to read as follows:
    17    (a) "Eligible Business." Any person subject to  a  tax  imposed  under
    18  chapter  five,  or subchapter two [or], three or three-A of chapter six,
    19  or chapter eleven, of title eleven of  the  code,  that:  (1)  has  been
    20  conducting  substantial  business  operations  at  one  or more business
    21  locations outside the eligible  area  for  the  twenty-four  consecutive
    22  months immediately preceding the taxable year during which such eligible
    23  business  relocates  as  defined in subdivision (j) of this section; and
    24  (2) on or after May twenty-seventh, nineteen hundred eighty-seven  relo-
    25  cates  as defined in subdivision (j) of this section all or part of such
    26  business operations; and (3) either (i) on or after May  twenty-seventh,
    27  nineteen  hundred  eighty-seven first enters into a contract to purchase
    28  or lease the premises to which it relocates as  defined  in  subdivision
    29  (j) of this section, or a parcel on which will be constructed such prem-
    30  ises,  or  (ii)  as of May twenty-seventh, nineteen hundred eighty-seven
    31  owns such parcel or premises and has not prior to such date made  appli-
    32  cation  for  benefits pursuant to part four of subchapter two of chapter
    33  two of title eleven of the code.
    34    "Total attributed eligible aggregate employment shares" means, for any
    35  relocation, the sum of  the  number  of  eligible  aggregate  employment
    36  shares  apportioned to such relocation pursuant to paragraph one of this
    37  subdivision, less any excess shares  determined  with  respect  to  such
    38  relocation  pursuant  to  paragraph  two  of  this subdivision, plus any
    39  excess shares attributed to such relocation pursuant to paragraph  three
    40  of this subdivision. Except as provided in paragraph four of this subdi-
    41  vision,  any eligible aggregate employment shares that are attributed to
    42  a relocation to particular premises pursuant to paragraph three of  this
    43  subdivision  shall  be  treated  as eligible aggregate employment shares
    44  that are maintained with respect to such premises and shall  be  subject
    45  to  all  provisions  of  this  chapter  and  the provisions for a credit
    46  against a tax imposed under chapter five or subchapter two  [or],  three
    47  or  three-A of chapter six or chapter eleven of title eleven of the code
    48  as such provisions pertain to such relocation.
    49    § 24. Subdivisions (a) and (d) of section 22-622 of the administrative
    50  code of the city of New York, subdivision (a) as amended and subdivision
    51  (d) as added by chapter 149 of the laws of 1999, are amended to read  as
    52  follows:
    53    (a)  An eligible business that relocates as defined in subdivision (j)
    54  of section 22-621 of the code shall  be  allowed  to  receive  a  credit
    55  against  a tax imposed by chapter five, or subchapter two [or], three or
    56  three-A of chapter six, or chapter eleven, of title eleven of the  code,

        S. 4610--A                         91                         A. 6721--A
 
     1  as described in subdivision (i) of section 11-503, subdivision seventeen
     2  of  section  11-604,  subdivision  seventeen  of section 11-654, section
     3  11-643.7 and section 11-1105.2 of the code, and a reduction in base rent
     4  subject  to  tax  as described in subdivision f of section 11-704 of the
     5  code, provided, however, notwithstanding any other provision of  law  to
     6  the  contrary,  no  such credit shall be allowed against the tax imposed
     7  under such chapter eleven for a relocation taking place prior to January
     8  first, nineteen hundred ninety-nine.
     9    (d) An eligible business other than a utility company subject  to  the
    10  supervision  of the department of public service shall not be authorized
    11  to receive a credit against the gross receipts tax imposed under chapter
    12  eleven of title eleven of the code, unless such eligible business elects
    13  to take the credit authorized by this section against the tax imposed by
    14  such chapter on an application filed with respect  to  the  first  relo-
    15  cation  of  such  business  that  qualifies  or  will qualify under this
    16  section, with the mayor or the agency designated by such mayor  pursuant
    17  to  subdivision  (b)  of  this  section. The election authorized by this
    18  subdivision may not be withdrawn after  the  issuance  of  such  certif-
    19  ication  of  eligibility.  No  taxpayer  that  has previously received a
    20  certification of eligibility to receive  such  credit  against  any  tax
    21  imposed  by  chapter  five  or  subchapter two [or], three or three-A of
    22  chapter six of title eleven of the code may make the election authorized
    23  by this subdivision. No taxpayer that makes  the  election  provided  in
    24  this subdivision shall be authorized to take such credit against any tax
    25  imposed  by  chapter  five  or  subchapter two [or], three or three-A of
    26  chapter six of title eleven of the code.
    27    § 25. Subdivisions (a) and (l) of section 22-623 of the administrative
    28  code of the city of New York, subdivision (a) as added by chapter 143 of
    29  the laws of 2004 and subdivision (l) as added by section 10 of part E of
    30  chapter 2 of the laws of 2005, are amended to read as follows:
    31    (a) "Eligible business" means any person  subject  to  a  tax  imposed
    32  under  chapter five, or subchapter two [or], three or three-A of chapter
    33  six, or chapter eleven, of title eleven of the code, that:
    34    (1) has been conducting substantial business operations at one or more
    35  business locations outside the city of  New  York  for  the  twenty-four
    36  consecutive  months  immediately preceding the taxable year during which
    37  such eligible business relocates as defined in subdivision (j)  of  this
    38  section but has not maintained employment shares at premises in the city
    39  of  New  York at any time during the period beginning January first, two
    40  thousand two and ending on the date it enters into a lease or a contract
    41  to purchase the premises that will qualify as eligible premises pursuant
    42  to this chapter; and
    43    (2) on or after July first, two thousand three relocates as defined in
    44  subdivision (j) of this section all or part of such business operations.
    45    (l) "Special eligible business" means any  person  subject  to  a  tax
    46  imposed  under chapter five, or subchapter two [or], three or three-A of
    47  chapter six, or chapter eleven, of title eleven of the code,  that:  (1)
    48  has been conducting substantial business operations at one or more busi-
    49  ness  locations outside the city of New York for the twenty-four consec-
    50  utive months immediately preceding the taxable year  during  which  such
    51  eligible  business  relocates  as  defined in subdivision (m); (2) main-
    52  tained employment shares at premises in Manhattan in  the  city  of  New
    53  York  at  some time during the period beginning January first, two thou-
    54  sand two, and ending on the date it enters into a lease or a contract to
    55  purchase the premises that will qualify as eligible premises pursuant to
    56  this section, and (3) on or after June  thirtieth,  two  thousand  five,

        S. 4610--A                         92                         A. 6721--A
 
     1  relocates  as  defined in subdivision (m) of this section all or part of
     2  such business operations.
     3    § 26. Subdivisions (a) and (d) of section 22-624 of the administrative
     4  code  of  the city of New York, subdivision (a) as amended by section 11
     5  of part E of chapter 2 of the  laws  of  2005  and  subdivision  (d)  as
     6  amended  by  section  12 of part E of chapter 2 of the laws of 2005, are
     7  amended to read as follows:
     8    (a) An eligible business that relocates as defined in subdivision  (j)
     9  of  section  22-623  of this chapter or a special eligible business that
    10  relocates as defined in subdivision (m) of section 22-623 of this  chap-
    11  ter  shall be allowed to receive a credit against a tax imposed by chap-
    12  ter five, or subchapter two [or], three or three-A of  chapter  six,  or
    13  chapter eleven, of title eleven of the code, as described in subdivision
    14  (l)  of section 11-503, subdivision nineteen of section 11-604, subdivi-
    15  sion nineteen of section 11-654, section 11-643.9 or  section  11-1105.3
    16  of the code.
    17    (d)  An  eligible  business  or special eligible business other than a
    18  utility company subject to the supervision of the department  of  public
    19  service  shall  not  be authorized to receive a credit against the gross
    20  receipts tax imposed under chapter eleven of title eleven  of  the  code
    21  unless  such  eligible  business  or special eligible business elects to
    22  take the credit authorized by this section against the  tax  imposed  by
    23  such  chapter  on  its  application  filed  with the mayor or the agency
    24  designated by such mayor pursuant to subdivision (b)  of  this  section.
    25  The  election  authorized by this subdivision may not be withdrawn after
    26  the issuance of such certification of eligibility. No taxpayer that  has
    27  previously received a certification of eligibility to receive such cred-
    28  it against any tax imposed by chapter five or subchapter two [or], three
    29  or  three-A  of  chapter  six  of  title eleven of the code may make the
    30  election authorized by this subdivision.  No  taxpayer  that  makes  the
    31  election  provided  in this subdivision shall be authorized to take such
    32  credit against any tax imposed by chapter five or subchapter  two  [or],
    33  three or three-A of chapter six of title eleven of the code.
    34    §  27. No addition to tax under subdivision 3 of section 11-676 of the
    35  administrative code of the city  of  New  York  shall  be  imposed  with
    36  respect  to  declarations  or  payments  of estimated tax required under
    37  sections 11-657 and 11-658 of the administrative code of the city of New
    38  York for declarations otherwise required to be filed and payments other-
    39  wise required to be made, by reason of section one of this act, prior to
    40  or on June 15, 2015, on the  condition  that  the  taxpayer  files  such
    41  declarations  and  makes  such  payments  no  later  than the first date
    42  following June 15, 2015 on which an  installment  of  estimated  tax  is
    43  required  to  be  paid,  together  with  all other such declarations and
    44  payments then due.
    45    § 28. Severability clause. If any clause, sentence, paragraph,  subdi-
    46  vision,  section  or  part of this act shall be adjudged by any court of
    47  competent jurisdiction to be invalid, such judgment  shall  not  affect,
    48  impair,  or  invalidate  the remainder thereof, but shall be confined in
    49  its operation to the clause, sentence, paragraph,  subdivision,  section
    50  or part thereof directly involved in the controversy in which such judg-
    51  ment shall have been rendered. It is hereby declared to be the intent of
    52  the  legislature  that  this  act  would  have been enacted even if such
    53  invalid provisions had not been included herein.
    54    § 29. This act shall take effect immediately and shall apply to  taxa-
    55  ble years beginning on or after January 1, 2015.

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     1                                   PART E
 
     2    Section  1. Chapter 567 of the laws of 2010 relating to establishing a
     3  special commission on compensation, and providing for their  powers  and
     4  duties;  and  to  provide periodic salary increases to state officers is
     5  REPEALED.
     6    § 2. 1. On the first of June of every fourth year, commencing June  1,
     7  2015,  there  shall be established a commission on legislative, judicial
     8  and executive compensation to examine, evaluate and make recommendations
     9  with respect to adequate levels of compensation and non-salary  benefits
    10  for  members  of  the legislature, judges and justices of the state-paid
    11  courts of the unified court system,  statewide  elected  officials,  and
    12  those state officers referred to in section 169 of the executive law.
    13    2.  (a) In accordance with the provisions of this section, the commis-
    14  sion shall examine: (1) the prevailing adequacy of pay levels and  other
    15  non-salary  benefits  received  by members of the legislature, statewide
    16  elected officials, and those state officers referred to in  section  169
    17  of the executive law; and
    18    (2)  the  prevailing  adequacy  of  pay levels and non-salary benefits
    19  received by the judges and justices of  the  state-paid  courts  of  the
    20  unified  court  system and housing judges of the civil court of the city
    21  of New York and determine whether any of such pay levels warrant adjust-
    22  ment; and
    23    (b) The commission shall determine whether: (1) for any  of  the  four
    24  years commencing on the first of April of such years, following the year
    25  in  which  the  commission  is  established, the annual salaries for the
    26  judges and justices of the state-paid courts of the unified court system
    27  and housing judges of the civil court of the city of New York warrant an
    28  increase; and
    29    (2) on the first of January after the  November  general  election  at
    30  which members of the state legislature are elected following the year in
    31  which the commission is established, and on the first of January follow-
    32  ing  the  next such election, the like annual salaries and allowances of
    33  members of the legislature, and salaries of statewide elected  officials
    34  and  state  officers  referred  to  in  section 169 of the executive law
    35  warrant an increase.
    36    3. In discharging its responsibilities under subdivision two  of  this
    37  section,  the commission shall take into account all appropriate factors
    38  including, but not limited to: the overall economic  climate;  rates  of
    39  inflation; changes in public-sector spending; the levels of compensation
    40  and  non-salary  benefits  received  by  executive  branch officials and
    41  legislators of other states and of the federal government; the levels of
    42  compensation  and  non-salary  benefits  received  by  professionals  in
    43  government,  academia  and  private  and  nonprofit  enterprise; and the
    44  state's ability to fund increases in compensation and  non-salary  bene-
    45  fits.
    46    §  3. 1. The commission shall consist of seven members to be appointed
    47  as follows: three shall be appointed  by  the  governor;  one  shall  be
    48  appointed  by  the  temporary  president  of  the  senate;  one shall be
    49  appointed by the speaker of the assembly; and two shall be appointed  by
    50  the  chief  judge  of the state, one of whom shall serve as chair of the
    51  commission.  With regard to any matters regarding legislative or  execu-
    52  tive  compensation,  the chair shall preside but not vote.  Vacancies in
    53  the commission shall be filled in the same manner as  original  appoint-
    54  ments.  To  the extent practicable, members of the commission shall have

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     1  experience in one or more of the following: determination  of  executive
     2  compensation, human resource administration or financial management.
     3    2.  The  commission  shall only meet within the state, may hold public
     4  hearings, at least one of which shall be open for the public to  provide
     5  comments and shall have all the powers of a legislative committee pursu-
     6  ant  to the legislative law. It shall be governed by articles 6, 6-A and
     7  7 of the public officers law.
     8    3. The members of the commission shall  receive  no  compensation  for
     9  their  services but shall be allowed their actual and necessary expenses
    10  incurred in the performance of their duties hereunder.
    11    4. No member of the commission shall be disqualified from holding  any
    12  other  public office or employment, nor shall he or she forfeit any such
    13  office or employment by reason of his or  her  appointment  pursuant  to
    14  this  section, notwithstanding the provisions of any general, special or
    15  local law, regulation, ordinance or city charter.
    16    5. To the maximum extent feasible, the commission shall be entitled to
    17  request and receive and shall utilize and be provided with such  facili-
    18  ties,  resources  and  data  of  any court, department, division, board,
    19  bureau, commission, agency or public authority of the state or any poli-
    20  tical subdivision thereof as it may  reasonably  request  to  carry  out
    21  properly its powers and duties pursuant to this section.
    22    6.  The  commission may request, and shall receive, reasonable assist-
    23  ance from state agency personnel as necessary for the performance of its
    24  function.
    25    7.  The commission shall make a report to the governor,  the  legisla-
    26  ture  and  the  chief  judge  of the state of its findings, conclusions,
    27  determinations and recommendations, if any, not later than  the  thirty-
    28  first of December of the year in which the commission is established for
    29  judicial  compensation  and the fifteenth of November the following year
    30  for legislative and executive compensation.  Any findings,  conclusions,
    31  determinations  and  recommendations  in the report must be adopted by a
    32  majority vote of the  commission  and  findings,  conclusions,  determi-
    33  nations  and  recommendations  with respect to executive and legislative
    34  compensation shall also be supported by at least one member appointed by
    35  each appointing authority.   Each recommendation  made  to  implement  a
    36  determination  pursuant  to section two of this act shall have the force
    37  of law, and shall supersede, where appropriate, inconsistent  provisions
    38  of  article  7-B of the judiciary law, section 169 of the executive law,
    39  and sections 5 and 5-a of the legislative law, unless modified or  abro-
    40  gated  by  statute  prior  to  April  first of the year as to which such
    41  determination applies to judicial compensation and January first of  the
    42  year as to which such determination applies to legislative and executive
    43  compensation.
    44    8.  Upon  the making of its report as provided in subdivision seven of
    45  this section, each commission established pursuant to this section shall
    46  be deemed dissolved.
    47    § 4. Date of  entitlement  to  salary  increase.  Notwithstanding  the
    48  provisions  of  this act or of any other law, each increase in salary or
    49  compensation of any officer or employee provided by this  act  shall  be
    50  added  to  the salary or compensation of such officer or employee at the
    51  beginning of that payroll period the first day of which  is  nearest  to
    52  the  effective  date of such increase as provided in this act, or at the
    53  beginning of the earlier of two payroll periods the first days of  which
    54  are  nearest  but equally near to the effective date of such increase as
    55  provided in this act; provided, however,  the  payment  of  such  salary
    56  increase  pursuant to this section on a date prior thereto instead of on

        S. 4610--A                         95                         A. 6721--A
 
     1  such effective date, shall not operate to confer any  additional  salary
     2  rights  or benefits on such officer or employee.  The annual salaries as
     3  prescribed pursuant to  this  act  whenever  adjusted  pursuant  to  the
     4  provisions  of  this act, shall be rounded up to the nearest multiple of
     5  one hundred dollars.
     6    § 5. This act shall take effect immediately and  shall  be  deemed  to
     7  have been in full force and effect on and after April 1, 2015.
 
     8                                   PART F
 
     9    Section  1.  This  act shall be known and may be cited as the "Infras-
    10  tructure investment act".
    11    § 2. For the purposes of this act:
    12    (a) "authorized state entity" shall mean the New  York  state  thruway
    13  authority, the department of transportation, the office of parks, recre-
    14  ation and historic preservation, the department of environmental conser-
    15  vation and the New York state bridge authority.
    16    (b)  "best  value"  shall  mean  the  basis for awarding contracts for
    17  services to the offerer that  optimize  quality,  cost  and  efficiency,
    18  price  and  performance  criteria, which may include, but is not limited
    19  to:
    20    1. The quality of the contractor's performance on previous projects;
    21    2.  The  timeliness  of  the  contractor's  performance  on   previous
    22  projects;
    23    3.  The  level of customer satisfaction with the contractor's perform-
    24  ance on previous projects;
    25    4. The contractor's record of performing previous projects  on  budget
    26  and ability to minimize cost overruns;
    27    5. The contractor's ability to limit change orders;
    28    6. The contractor's ability to prepare appropriate project plans;
    29    7. The contractor's technical capacities;
    30    8. The individual qualifications of the contractor's key personnel;
    31    9.  The  contractor's  ability  to assess and manage risk and minimize
    32  risk impact; and
    33    10. The contractor's past record of compliance with  article  15-A  of
    34  the executive law.
    35    Such  basis  shall reflect, wherever possible, objective and quantifi-
    36  able analysis.
    37    (c) "capital project" shall have the same  meaning  as  such  term  is
    38  defined by subdivision 2-a of section 2 of the state finance law.
    39    (d)  "cost  plus" shall mean compensating a contractor for the cost to
    40  complete a contract by reimbursing actual costs for labor, equipment and
    41  materials plus an additional amount for overhead and profit.
    42    (e) "design-build contract" shall mean a contract for the  design  and
    43  construction  of  a capital project with a single entity, which may be a
    44  team comprised of separate entities.
    45    (f) "procurement record" means documentation of the decisions made and
    46  the approach taken in the procurement process.
    47    § 3. Notwithstanding the provisions of section 38 of the highway  law,
    48  section  136-a  of  the  state  finance  law,  section 359 of the public
    49  authorities law, section 7210 of the education law, and  the  provisions
    50  of  any  other  law to the contrary, and in conformity with the require-
    51  ments of this act, an authorized state entity may utilize  the  alterna-
    52  tive delivery method referred to as design-build contracts, in consulta-
    53  tion  with relevant local labor organizations and construction industry,
    54  for capital projects related to  the  state's  physical  infrastructure,

        S. 4610--A                         96                         A. 6721--A
 
     1  including,  but  not  limited  to,  the state's highways, bridges, dams,
     2  flood control projects, canals, and parks, including,  but  not  limited
     3  to,  to  repair damage caused by natural disaster, to correct health and
     4  safety  defects,  to  comply with federal and state laws, standards, and
     5  regulations, to extend the useful life of or replace the  state's  high-
     6  ways,  bridges,  dams,  flood  control projects, canals, and parks or to
     7  improve or add to the state's highways,  bridges,  dams,  flood  control
     8  projects, canals, and parks; provided that for the contracts executed by
     9  the  department  of  transportation, the office of parks, recreation and
    10  historic preservation, or the department of environmental  conservation,
    11  the  total  cost of each such project shall not be less than one million
    12  two hundred thousand dollars ($1,200,000).
    13    § 4. An entity selected by an authorized state entity to enter into  a
    14  design-build  contract  shall  be selected through a two-step method, as
    15  follows:
    16    (a) Step one. Generation of a list of entities that have  demonstrated
    17  the  general capability to perform the design-build contract.  Such list
    18  shall consist of a specified number of entities,  as  determined  by  an
    19  authorized  state  entity, and shall be generated based upon the author-
    20  ized state entity's review of responses to a publicly advertised request
    21  for qualifications. The authorized state entity's request for qualifica-
    22  tions shall include a general description of the  project,  the  maximum
    23  number  of entities to be included on the list, and the selection crite-
    24  ria to be used in generating the list.  Such  selection  criteria  shall
    25  include the qualifications and experience of the design and construction
    26  team,  organization, demonstrated responsibility, ability of the team or
    27  of a member or members of the team to comply  with  applicable  require-
    28  ments,  including  the  provisions  of  articles 145, 147 and 148 of the
    29  education law, past record of compliance with the labor  law,  and  such
    30  other qualifications the authorized state entity deems appropriate which
    31  may  include  but  are  not  limited to project understanding, financial
    32  capability and record of past performance. The authorized  state  entity
    33  shall evaluate and rate all entities responding to the request for qual-
    34  ifications.   Based upon such ratings, the authorized state entity shall
    35  list the entities that shall receive a request for proposals in  accord-
    36  ance  with  subdivision  (b) of this section.   To the extent consistent
    37  with applicable federal law, the authorized state entity shall consider,
    38  when awarding any contract pursuant to this section,  the  participation
    39  of: (i) firms certified pursuant to article 15-A of the executive law as
    40  minority  or  women-owned businesses and the ability of other businesses
    41  under consideration to work with minority and women-owned businesses  so
    42  as  to  promote  and  assist  participation by such businesses; and (ii)
    43  small business  concerns  identified  pursuant  to  subdivision  (b)  of
    44  section 139-g of the state finance law.
    45    (b) Step two. Selection of the proposal which is the best value to the
    46  state.  The  authorized state entity shall issue a request for proposals
    47  to the entities listed pursuant to subdivision (a) of this section.   If
    48  such  an  entity  consists  of a team of separate entities, the entities
    49  that comprise such a team must remain unchanged from the entity as list-
    50  ed pursuant to subdivision (a) of this section unless otherwise approved
    51  by the authorized state entity. The  request  for  proposals  shall  set
    52  forth the project's scope of work, and other requirements, as determined
    53  by the authorized state entity.  The request for proposals shall specify
    54  the  criteria  to  be  used  to  evaluate the responses and the relative
    55  weight  of  each  such  criteria.    Such  criteria  shall  include  the
    56  proposal's  cost, the quality of the proposal's solution, the qualifica-

        S. 4610--A                         97                         A. 6721--A
 
     1  tions and experience of  the  design-build  entity,  and  other  factors
     2  deemed  pertinent by the authorized state entity, which may include, but
     3  shall not be limited to, the proposal's project implementation,  ability
     4  to  complete  the  work in a timely and satisfactory manner, maintenance
     5  costs of the completed project, maintenance  of  traffic  approach,  and
     6  community  impact.  Any  contract  awarded pursuant to this act shall be
     7  awarded  to  a  responsive  and  responsible  entity  that  submits  the
     8  proposal,  which, in consideration of these and other specified criteria
     9  deemed pertinent to the project, offers the best value to the state,  as
    10  determined  by  the  authorized  state  entity.  Nothing herein shall be
    11  construed to prohibit  the  authorized  entity  from  negotiating  final
    12  contract terms and conditions including cost.
    13    §  5.  Any  contract entered into pursuant to this act shall include a
    14  clause requiring that any professional services  regulated  by  articles
    15  145, 147 and 148 of the education law shall be performed and stamped and
    16  sealed, where appropriate, by a professional licensed in accordance with
    17  such articles.
    18    §  6.  Construction for each capital project undertaken by the author-
    19  ized state entity pursuant to this act shall be deemed a  "public  work"
    20  to  be  performed  in accordance with the provisions of article 8 of the
    21  labor law, as well as subject to sections 200, 240, 241 and 242  of  the
    22  labor  law  and  enforcement  of prevailing wage requirements by the New
    23  York state department of labor.
    24    § 7. If otherwise  applicable,  capital  projects  undertaken  by  the
    25  authorized state entity pursuant to this act shall be subject to section
    26  135 of the state finance law and section 222 of the labor law.
    27    §  8. Each contract entered into by the authorized state entity pursu-
    28  ant to this section shall comply with the objectives and goals of minor-
    29  ity and women-owned business enterprises pursuant to article 15-A of the
    30  executive law or, for projects receiving federal aid, shall comply  with
    31  applicable federal requirements for disadvantaged business enterprises.
    32    § 9. Capital projects undertaken by the authorized state entity pursu-
    33  ant to this act shall be subject to the requirements of article 8 of the
    34  environmental  conservation law, and, where applicable, the requirements
    35  of the national environmental policy act.
    36    § 10.  If otherwise applicable, capital  projects  undertaken  by  the
    37  authorized  state  entity  pursuant  to  this  act  shall be governed by
    38  sections 139-d, 139-j, 139-k, paragraph f of subdivision 1 and paragraph
    39  g of subdivision 9 of section 163 of the state finance law.
    40    § 11.  The submission of a proposal or responses or the execution of a
    41  design-build contract pursuant to this act shall not be construed to  be
    42  a violation of section 6512 of the education law.
    43    §  12.  Nothing  contained  in this act shall limit the right or obli-
    44  gation of the authorized state entity to comply with the  provisions  of
    45  any  existing  contract, including any existing contract with or for the
    46  benefit of the holders of the obligations of the authorized state  enti-
    47  ty, or to award contracts as otherwise provided by law.
    48    §  13. Alternative construction awarding processes.  (a) Notwithstand-
    49  ing the provisions of any other law  to  the  contrary,  the  authorized
    50  state entity may award a construction contract:
    51    1. To the contractor offering the best value; or
    52    2.  Utilizing  a cost-plus not to exceed guaranteed maximum price form
    53  of contract in which the authorized state entity shall  be  entitled  to
    54  monitor  and  audit  all project costs. In establishing the schedule and
    55  process for determining a guaranteed maximum price, the contract between
    56  the authorized state entity and the contractor shall:

        S. 4610--A                         98                         A. 6721--A
 
     1    (i) describe the scope of the work and the  cost  of  performing  such
     2  work;
     3    (ii) include a detailed line item cost breakdown;
     4    (iii)  include a list of all drawings, specifications and other infor-
     5  mation on which the guaranteed maximum price is based;
     6    (iv) include the dates for substantial and final completion  on  which
     7  the guaranteed maximum price is based; and
     8    (v) include a schedule of unit prices; or
     9    3.  Utilizing  a  lump  sum contract in which the contractor agrees to
    10  accept a set dollar amount for a contract which comprises a  single  bid
    11  without  providing a cost breakdown for all costs such as for equipment,
    12  labor, materials, as well as such contractor's profit for completing all
    13  items of work comprising the project.
    14    (b) Capital projects undertaken by  an  authorized  state  entity  may
    15  include  an  incentive  clause  in  the contract for various performance
    16  objectives, but the incentive clause shall not include an incentive that
    17  exceeds the quantifiable value of the benefit received by the state. The
    18  authorized state entity shall establish  such  performance  and  payment
    19  bonds as it deems necessary.
    20    §   14.   Prequalified  contractors.  (a)  Notwithstanding  any  other
    21  provision of law, the authorized state entity may  maintain  a  list  of
    22  prequalified  contractors who are eligible to submit a proposal pursuant
    23  to this act and entry into such list shall  be  continuously  available.
    24  Prospective  contractors  may  be prequalified as contractors to provide
    25  particular types of construction, in accordance  with  general  criteria
    26  established  by the authorized state entity which may include, but shall
    27  not be limited to, the experience, past performance, ability  to  under-
    28  take the type and complexity of work, financial capability, responsibil-
    29  ity, compliance with equal employment opportunity requirements and anti-
    30  discrimination  laws,  and  reliability. Such prequalification may be by
    31  categories designed by size and other factors.
    32    (b) A contractor who is denied prequalification or whose prequalifica-
    33  tion is revoked or suspended by the authorized state entity  may  appeal
    34  such  decision  to  the  authorized  state  entity. If such a suspension
    35  extends for more than three months, it shall be deemed a  revocation  of
    36  the  prequalification.  The authorized state entity may proceed with the
    37  contract award during any appeal.
    38    § 15. Nothing in this act shall affect existing  powers  of  New  York
    39  state public entities to use alternative project delivery methods.
    40    § 16. A report shall be submitted on or no later than June 30, 2016 to
    41  the  governor,  the temporary president of the senate and the speaker of
    42  the assembly  by  the  New  York  state  urban  development  corporation
    43  containing  information on each authorized state entity that has entered
    44  into a design-build contract pursuant to this act, which shall  include,
    45  but not be limited to, a description of each project, procurement infor-
    46  mation  including the short list of qualified bidders, the total cost of
    47  each project, the estimated cost and schedule savings of  each  project,
    48  an explanation of how the savings were determined, and whether a project
    49  labor agreement was used, and if applicable, the justification for using
    50  a project labor agreement.
    51    §  17.  This act shall take effect immediately and shall expire and be
    52  deemed repealed 2 years after such date, provided  that,  projects  with
    53  requests for qualifications issued prior to such repeal shall be permit-
    54  ted to continue under this act notwithstanding such repeal.
    55                                   PART G

        S. 4610--A                         99                         A. 6721--A
 
     1    Section  1.  This act may be known and be cited as the "New York State
     2  water infrastructure improvement act of 2015".
     3    § 2. For purposes of this act:
     4    1. "water quality infrastructure project" shall mean "sewage treatment
     5  works"  as  defined in section 17-1903 of the environmental conservation
     6  law or "eligible project" as defined in paragraphs (a), (b), (c) and (e)
     7  of subdivision 4 of section 1160 of the public health law.
     8    2. "construction" shall mean:
     9    (a) for sewage treatment works, the same as defined in section 17-1903
    10  of the environmental conservation law; and
    11    (b) for eligible projects, the same meaning as defined in section 1160
    12  of the public health law.
    13    3. "municipality" shall mean any county, city, town, village, district
    14  corporation, county or town improvement district, school district, Indi-
    15  an nation or tribe recognized by the state or the United States  with  a
    16  reservation  wholly  or  partly within the boundaries of New York state,
    17  any public benefit corporation or public authority established  pursuant
    18  to  the  laws  of  New  York  or  any  agency of New York state which is
    19  empowered to  construct  and  operate  a  water  quality  infrastructure
    20  project, or any two or more of the foregoing which are acting jointly in
    21  connection with a water quality infrastructure project.
    22    §  3.  1. The environmental facilities corporation shall undertake and
    23  provide state financial assistance payments, from funds appropriated for
    24  such purpose, to municipalities in support of water quality  infrastruc-
    25  ture  projects provided, however, in any such year that funds are appro-
    26  priated for such purpose, no municipality shall receive more  than  five
    27  million  dollars  of appropriated funds. Such state financial assistance
    28  payments shall be awarded only to water quality infrastructure  projects
    29  for:
    30    (a) replacement or repair of infrastructure; or
    31    (b)  compliance  with  environmental  and public health laws and regu-
    32  lations related to water quality.
    33    2. Any state financial assistance payment awarded pursuant to this act
    34  shall not exceed sixty percent of the project cost.
    35    3. A municipality may make an application  for  such  state  financial
    36  assistance  payment, in a manner, form and timeframe and containing such
    37  information as the  environmental  facilities  corporation  may  require
    38  provided  however, such requirements shall not include a requirement for
    39  prior listing on the intended use plan.
    40    4. A municipality shall not be required to accept environmental facil-
    41  ities corporation loan financing in order to obtain  a  state  financial
    42  assistance  payment  pursuant  to  this  act  if it can provide proof of
    43  having obtained similarly low  cost  financing  or  other  funding  from
    44  another source.
    45    5.  In awarding such state financial assistance payments, the environ-
    46  mental facilities corporation shall  consider  and  give  preference  to
    47  municipalities  that meet the hardship criteria established by the envi-
    48  ronmental facilities corporation  pursuant  to  section  1285-m  of  the
    49  public  authorities  law  and projects that result in the greatest water
    50  quality improvement or greatest reduction  in  serious  risk  to  public
    51  health.   For the purposes of this act, the hardship criteria of section
    52  1285-m of the public authorities law shall also apply to  sewage  treat-
    53  ment  works defined in section 17-1903 of the environmental conservation
    54  law.
    55    § 4. This act shall take effect April 1, 2015.

        S. 4610--A                         100                        A. 6721--A
 
     1                                   PART H
 
     2    Section  1.  The  state finance law is amended by adding a new section
     3  93-b to read as follows:
     4    § 93-b. Dedicated infrastructure investment fund. 1. Dedicated infras-
     5  tructure investment fund. (a) There is hereby established in  the  joint
     6  custody  of  the  state comptroller and the commissioner of taxation and
     7  finance a special fund to be  known  as  the  "dedicated  infrastructure
     8  investment fund".
     9    (b)  Account.  The  dedicated  infrastructure  investment  fund  shall
    10  consist of one account, the "infrastructure investment account".  Moneys
    11  in this account shall be kept separate and not commingled with any other
    12  moneys in the custody of the comptroller.
    13    (c) Sources of funds. The sources of funds shall consist of all moneys
    14  collected  therefor,  or  moneys  credited,  appropriated or transferred
    15  thereto from any other fund or source  pursuant  to  law  or  any  other
    16  moneys  made  available  for  the  purposes  of  the  fund. Any interest
    17  received by the comptroller on moneys on deposit shall be  retained  and
    18  become part of the fund, unless otherwise directed by law.
    19    2.  Uses  of funds. Following appropriation by the legislature, moneys
    20  in the infrastructure investment account shall be available  to  finance
    21  projects,  works,  activities or purposes necessary to support statewide
    22  investments as appropriated by the  legislature.  Nothing  contained  in
    23  this section shall be construed to limit in any way the projects, works,
    24  activities or purposes that can be financed from this account, including
    25  but  not limited to loans of money to public corporations or authorities
    26  under terms approved by the director of the budget.
    27    3. Transfers. Notwithstanding any  other  provisions  of  law  to  the
    28  contrary, for the state fiscal year commencing on April first, two thou-
    29  sand  fifteen,  the  comptroller is hereby authorized to transfer monies
    30  from the dedicated infrastructure investment fund to the  general  fund,
    31  and  from  the  general  fund to the dedicated infrastructure investment
    32  fund, in an amount determined by the  director  of  the  budget  to  the
    33  extent  moneys  are  available  in the fund; provided, however, that the
    34  comptroller is only authorized to transfer  monies  from  the  dedicated
    35  infrastructure  investment  fund  to the general fund in the event of an
    36  economic downturn as described in paragraph  (a)  of  this  subdivision;
    37  and/or  to fulfill disallowances and/or settlements related to over-pay-
    38  ments of federal medicare and medicaid revenues in excess of one hundred
    39  million dollars from anticipated levels, as determined by  the  director
    40  of the budget and described in paragraph (b) of this subdivision.
    41    (a)  Economic  downturn.  Notwithstanding any law to the contrary, for
    42  the purpose of this section, the commissioner of labor  shall  calculate
    43  and  publish,  on or before the fifteenth day of each month, a composite
    44  index of business cycle indicators. Such index shall be calculated using
    45  monthly data on New York state  employment,  total  manufacturing  hours
    46  worked,  and  unemployment  prepared  by  the department of labor or its
    47  successor agency, and total sales tax  collected  net  of  law  changes,
    48  prepared  by  the  department  of  taxation and finance or its successor
    49  agency. Such index shall be constructed in accordance  with  the  proce-
    50  dures  for  calculating composite indexes issued by the conference board
    51  or its successor organization, and adjusted for seasonal  variations  in
    52  accordance with the procedures issued by the census bureau of the United
    53  States  department of commerce or its successor agency. If the composite
    54  index declines for five consecutive months, the  commissioner  of  labor
    55  shall  notify  the  governor, the speaker of the assembly, the temporary

        S. 4610--A                         101                        A. 6721--A
 
     1  president of the senate, and the minority leaders of  the  assembly  and
     2  the  senate.  Upon  such  notification,  the  director of the budget may
     3  authorize and direct the comptroller  to  transfer  from  the  dedicated
     4  infrastructure  investment  fund to the general fund such amounts as the
     5  director of the budget deems necessary to meet the requirements  of  the
     6  state  financial  plan.  The  authority  to  transfer  funds  under  the
     7  provisions of this paragraph shall lapse when the composite index  shall
     8  have  increased  for  five  consecutive months or twelve months from the
     9  original notification of the commissioner  of  labor,  whichever  occurs
    10  earlier.  Provided,  however,  that for every additional and consecutive
    11  monthly decline succeeding the  five  month  decline  so  noted  by  the
    12  commissioner  of labor, the twelve month lapse date shall be extended by
    13  one additional month.
    14    (b) Federal medicare and medicaid revenues. Notwithstanding any law to
    15  the contrary, the director of the budget may authorize  and  direct  the
    16  comptroller  to  transfer  from  the dedicated infrastructure investment
    17  fund to the general fund an  amount  not  to  exceed  the  disallowances
    18  and/or  settlements related to the over-payments of federal medicare and
    19  medicaid revenues. In the event  this  authorization  is  utilized,  the
    20  director  of  the  budget  may  authorize  and direct the comptroller to
    21  transfer such amount and the concomitant reduction in state share  medi-
    22  care  and  medicaid  revenues from the general fund to the miscellaneous
    23  special revenue fund, mental hygiene program fund (21907), the miscella-
    24  neous special revenue fund, patient  income  account  (21909),  and  the
    25  Medicaid  Management  Information  System  (MMIS)  Statewide Escrow Fund
    26  (60901).
    27    (c) Prior to authorizing any transfer from the  dedicated  infrastruc-
    28  ture  investment  fund  accounts  pursuant  to  the  provisions  of this
    29  section, the director of the budget shall  notify  the  speaker  of  the
    30  assembly,  the temporary president of the senate, and the minority lead-
    31  ers of the assembly and  the  senate.  Such  letter  shall  specify  the
    32  reasons for the transfer and the amount thereof.
    33    § 2. This act shall take effect immediately.
 
    34                                   PART I
 
    35    Section  1. The state comptroller is hereby authorized and directed to
    36  loan money in accordance with the provisions set forth in subdivision  5
    37  of  section  4  of  the  state finance law to the following funds and/or
    38  accounts:
    39    1. Tuition reimbursement account (20451).
    40    2. Proprietary vocational school supervision account (20452).
    41    3. Local government records management account (20501).
    42    4. Child health plus program account (20810).
    43    5. EPIC premium account (20818).
    44    6. Education - New (20901).
    45    7. VLT - Sound basic education fund (20904).
    46    8.  Sewage  treatment  program  management  and  administration   fund
    47  (21000).
    48    9. Hazardous bulk storage account (21061).
    49    10. Federal grants indirect cost recovery account (21065).
    50    11. Low level radioactive waste account (21066).
    51    12. Recreation account (21067).
    52    13. Public safety recovery account (21077).
    53    14. Environmental regulatory account (21081).
    54    15. Natural resource account (21082).

        S. 4610--A                         102                        A. 6721--A
 
     1    16. Mined land reclamation program account (21084).
     2    17. Great lakes restoration initiative account (21087).
     3    18. Environmental protection and oil spill compensation fund (21200).
     4    19. Public transportation systems account (21401).
     5    20. Metropolitan mass transportation (21402).
     6    21. Operating permit program account (21451).
     7    22. Mobile source account (21452).
     8    23.   Statewide  planning  and  research  cooperative  system  account
     9  (21902).
    10    24. OPWDD provider of service account (21903).
    11    25. Mental hygiene program fund account (21907).
    12    26. Mental hygiene patient income account (21909).
    13    27. Financial control board account (21911).
    14    28. Regulation of racing account (21912).
    15    29. New York Metropolitan Transportation Council account (21913).
    16    30. State university dormitory income reimbursable account (21937).
    17    31. Energy research account (21943).
    18    32. Criminal justice improvement account (21945).
    19    33. Fingerprint identification and technology account (21950).
    20    34. Environmental laboratory reference fee account (21959).
    21    35. Clinical laboratory reference system assessment account (21962).
    22    36. Indirect cost recovery account (21978).
    23    37. High school equivalency program account (21979).
    24    38. Multi-agency training account (21989).
    25    39. Bell jar collection account (22003).
    26    40. Industry and utility service account (22004).
    27    41. Real property disposition account (22006).
    28    42. Parking account (22007).
    29    43. Asbestos safety training program account (22009).
    30    44. Batavia school for the blind account (22032).
    31    45. Investment services account (22034).
    32    46. Surplus property account (22036).
    33    47. Financial oversight account (22039).
    34    48. Regulation of indian gaming account (22046).
    35    49. Rome school for the deaf account (22053).
    36    50. Seized assets account (22054).
    37    51. Administrative adjudication account (22055).
    38    52. Federal salary sharing account (22056).
    39    53. New York City assessment account (22062).
    40    54. Cultural education account (22063).
    41    55. Local services account (22078).
    42    56. DHCR mortgage servicing account (22085).
    43    57. Department of motor vehicles compulsory insurance account (22087).
    44    58. Housing indirect cost recovery account (22090).
    45    59. Accident prevention course program account (22094).
    46    60. DHCR-HCA application fee account (22100).
    47    61. Low income housing monitoring account (22130).
    48    62. Corporation administration account (22135).
    49    63. Montrose veteran's home account (22144).
    50    64. Deferred compensation administration account (22151).
    51    65. Rent revenue other New York City account (22156).
    52    66. Rent revenue account (22158).
    53    67. Tax revenue arrearage account (22168).
    54    68. State university general income offset account (22654).
    55    69. State police motor vehicle law enforcement account (22802).
    56    70. Highway safety program account (23001).

        S. 4610--A                         103                        A. 6721--A
 
     1    71. EFC drinking water program account (23101).
     2    72. DOH drinking water program account (23102).
     3    73. NYCCC operating offset account (23151).
     4    74. Commercial gaming revenue account (23701).
     5    75. Commercial gaming regulation account (23702).
     6    76. Highway and bridge capital account (30051).
     7    77. State university residence hall rehabilitation fund (30100).
     8    78. State parks infrastructure account (30351).
     9    79. Clean water/clean air implementation fund (30500).
    10    80. Hazardous waste remedial cleanup account (31506).
    11    81. Youth facilities improvement account (31701).
    12    82. Housing assistance fund (31800).
    13    83. Housing program fund (31850).
    14    84. Highway facility purpose account (31951).
    15    85. Information technology capital financing account (32215).
    16    86. New York racing account (32213).
    17    87. Mental hygiene facilities capital improvement fund (32300).
    18    88. Correctional facilities capital improvement fund (32350).
    19    89. New York State Storm Recovery Capital Fund (33000).
    20    90. OGS convention center account (50318).
    21    91. Centralized services fund (55000).
    22    92. Archives records management account (55052).
    23    93. Federal single audit account (55053).
    24    94. Civil service law section II administrative account (55055).
    25    95. Civil service EHS occupational health program account (55056).
    26    96. Banking services account (55057).
    27    97. Cultural resources survey account (55058).
    28    98. Neighborhood work project (55059).
    29    99. Automation & printing chargeback account (55060).
    30    100. OFT NYT account (55061).
    31    101. Data center account (55062).
    32    102. Intrusion detection account (55066).
    33    103. Domestic violence grant account (55067).
    34    104. Centralized technology services account (55069).
    35    105. Labor contact center account (55071).
    36    106. Human services contact center account (55072).
    37    107. Tax contact center account (55073).
    38    108. Executive direction internal audit account (55251).
    39    109. CIO Information technology centralized services account (55252).
    40    110. Health insurance internal service account (55300).
    41    111.  Civil  service employee benefits division administrative account
    42  (55301).
    43    112. Correctional industries revolving fund (55350).
    44    113. Employees health insurance account (60201).
    45    114. Medicaid management information system escrow fund (60900).
    46    § 1-a. The state comptroller is hereby authorized and directed to loan
    47  money in accordance with the provisions set forth in  subdivision  5  of
    48  section  4  of the state finance law to any account within the following
    49  federal funds, provided the comptroller has made  a  determination  that
    50  sufficient  federal grant award authority is available to reimburse such
    51  loans:
    52    1. Federal USDA-food and nutrition services fund (25000).
    53    2. Federal health and human services fund (25100).
    54    3. Federal education fund (25200).
    55    4. Federal block grant fund (25250).
    56    5. Federal miscellaneous operating grants fund (25300).

        S. 4610--A                         104                        A. 6721--A
 
     1    6. Federal unemployment insurance administration fund (25900).
     2    7. Federal unemployment insurance occupational training fund (25950).
     3    8. Federal emergency employment act fund (26000).
     4    9. Federal capital projects fund (31350).
     5    §  2.  Notwithstanding any law to the contrary, and in accordance with
     6  section 4 of the state finance law, the comptroller is hereby authorized
     7  and directed to transfer, upon request of the director of the budget, on
     8  or before March 31, 2016, up to the unencumbered balance or the  follow-
     9  ing amounts:
    10    Economic Development and Public Authorities:
    11    1.  $175,000  from the miscellaneous special revenue fund, underground
    12  facilities safety training account (22172), to the general fund.
    13    2. An amount up to the unencumbered  balance  from  the  miscellaneous
    14  special  revenue  fund, business and licensing services account (21977),
    15  to the general fund.
    16    3. $14,810,000 from  the  miscellaneous  special  revenue  fund,  code
    17  enforcement account (21904), to the general fund.
    18    4.  $3,000,000  from  the  general  fund  to the miscellaneous special
    19  revenue fund, tax revenue arrearage account (22168).
    20    5. $552,000 from the miscellaneous special revenue fund, consumer food
    21  industry account (21966), to the general fund.
    22    Education:
    23    1. $2,219,000,000 from the general fund to  the  state  lottery  fund,
    24  education  account (20901), as reimbursement for disbursements made from
    25  such fund for supplemental aid to education pursuant to section 92-c  of
    26  the  state  finance  law  that are in excess of the amounts deposited in
    27  such fund for such purposes pursuant to section 1612 of the tax law.
    28    2. $950,000,000 from the general fund to the state lottery  fund,  VLT
    29  education  account (20904), as reimbursement for disbursements made from
    30  such fund for supplemental aid to education pursuant to section 92-c  of
    31  the  state  finance  law  that are in excess of the amounts deposited in
    32  such fund for such purposes pursuant to section 1612 of the tax law.
    33    3. Moneys from the state lottery fund up to  an  amount  deposited  in
    34  such  fund  pursuant  to  section  1612  of the tax law in excess of the
    35  current year appropriation for supplemental aid to education pursuant to
    36  section 92-c of the state finance law.
    37    4. $300,000 from the local government records  management  improvement
    38  fund (20500) to the archives partnership trust fund (20350).
    39    5. $900,000 from the general fund to the miscellaneous special revenue
    40  fund, Batavia school for the blind account (22032).
    41    6. $900,000 from the general fund to the miscellaneous special revenue
    42  fund, Rome school for the deaf account (22053).
    43    7.  $343,400,000  from  the  state  university  dormitory  income fund
    44  (40350) to the miscellaneous  special  revenue  fund,  state  university
    45  dormitory income reimbursable account (21937).
    46    8.  $24,000,000  from  any  of  the state education department special
    47  revenue and internal service funds to the miscellaneous special  revenue
    48  fund, indirect cost recovery account (21978).
    49    9.  $8,318,000  from  the  general fund to the state university income
    50  fund, state university income offset account (22654),  for  the  state's
    51  share of repayment of the STIP loan.
    52    10. $45,000,000 from the state university income fund, state universi-
    53  ty hospitals income reimbursable account (22656) to the general fund for
    54  hospital  debt  service  for  the period April 1, 2015 through March 31,
    55  2016.
    56    Environmental Affairs:

        S. 4610--A                         105                        A. 6721--A
 
     1    1. $16,000,000 from any of the department of  environmental  conserva-
     2  tion's  special  revenue federal funds to the environmental conservation
     3  special revenue fund, federal indirect recovery account (21065).
     4    2.  $2,000,000  from  any of the department of environmental conserva-
     5  tion's special revenue federal funds to the conservation fund as  neces-
     6  sary to avoid diversion of conservation funds.
     7    3. $3,000,000 from any of the office of parks, recreation and historic
     8  preservation  capital projects federal funds and special revenue federal
     9  funds to the miscellaneous special revenue fund, federal grant  indirect
    10  cost recovery account (22188).
    11    4. $1,000,000 from any of the office of parks, recreation and historic
    12  preservation  special revenue federal funds to the miscellaneous special
    13  revenue fund, I love NY water account (21930).
    14    5. $23,000,000 from the general fund to the  environmental  protection
    15  fund, environmental protection fund transfer account (30451).
    16    6.  $8,500,000  from  the general fund to the hazardous waste remedial
    17  fund, hazardous waste oversight and assistance account (31505).
    18    7. $25,000,000 from the environmental protection  fund,  environmental
    19  protection transfer account (30451), to the general fund.
    20    Family Assistance:
    21    1. $10,000,000 from any of the office of children and family services,
    22  office  of  temporary and disability assistance, or department of health
    23  special revenue federal funds and the general fund, in  accordance  with
    24  agreements  with social services districts, to the miscellaneous special
    25  revenue fund, office of human resources development state match  account
    26  (21967).
    27    2.  $3,000,000  from any of the office of children and family services
    28  or office of temporary and disability assistance special revenue federal
    29  funds to the miscellaneous special revenue fund, family preservation and
    30  support services and family violence services account (22082).
    31    3. $18,670,000 from any of the office of children and family services,
    32  office of temporary and disability assistance, or department  of  health
    33  special  revenue  federal  funds  and  any  other miscellaneous revenues
    34  generated from the operation of office of children and  family  services
    35  programs to the general fund.
    36    4.  $166,000,000  from  any  of the office of temporary and disability
    37  assistance or department of health special revenue funds to the  general
    38  fund.
    39    5.  $2,500,000  from  any  of  the  office of temporary and disability
    40  assistance or office of children and  family  services  special  revenue
    41  federal  funds  to  the  miscellaneous  special  revenue fund, office of
    42  temporary and disability assistance program account (21980).
    43    6. $35,000,000 from any of the office of children and family services,
    44  office of temporary and disability assistance, department of labor,  and
    45  department  of  health  special  revenue  federal funds to the office of
    46  children and family services miscellaneous special revenue fund,  multi-
    47  agency training contract account (21989).
    48    7.  $65,000,000  from  the  miscellaneous  special revenue fund, youth
    49  facility per diem account (22186), to the general fund.
    50    8. $621,850 from the general fund to the combined gifts,  grants,  and
    51  bequests fund, WB Hoyt Memorial account (20128).
    52    9.  $3,100,000  from  the  miscellaneous  special  revenue fund, state
    53  central registry (22028), to the general fund.
    54    General Government:
    55    1. $1,566,000 from the miscellaneous special revenue fund, examination
    56  and miscellaneous revenue account (22065) to the general fund.

        S. 4610--A                         106                        A. 6721--A
 
     1    2. $12,500,000 from the general fund to the health insurance revolving
     2  fund (55300).
     3    3.  $192,400,000  from  the  health  insurance  reserve  receipts fund
     4  (60550) to the general fund.
     5    4. $150,000 from the general fund to the not-for-profit revolving loan
     6  fund (20650).
     7    5. $150,000 from the not-for-profit revolving loan fund (20650) to the
     8  general fund.
     9    6. $3,000,000 from the miscellaneous  special  revenue  fund,  surplus
    10  property account (22036), to the general fund.
    11    7.  $19,900,000  from  the  general  fund to the miscellaneous special
    12  revenue fund, alcoholic beverage control account (22033).
    13    8. $23,000,000 from the miscellaneous special  revenue  fund,  revenue
    14  arrearage account (22024), to the general fund.
    15    9.  $1,826,000  from  the  miscellaneous special revenue fund, revenue
    16  arrearage account (22024), to the miscellaneous  special  revenue  fund,
    17  authority budget office account (22138).
    18    10.  $1,000,000  from  the miscellaneous special revenue fund, parking
    19  services account (22007), to the general fund, for the purpose of  reim-
    20  bursing the costs of debt service related to state parking facilities.
    21    11.  $21,794,000  from  the general fund to the internal service fund,
    22  COPS account (55013).
    23    12. $8,360,000 from the general fund to the agencies internal  service
    24  fund,  central  technology  services account (55069), for the purpose of
    25  enterprise technology projects.
    26    13. $5,000,000 from the miscellaneous special revenue  fund,  workers'
    27  compensation  account  (21995),  to  the  miscellaneous capital projects
    28  fund, workers' compensation board IT business process design fund.
    29    Health:
    30    1. $30,000,000 from the miscellaneous special revenue fund, quality of
    31  care account (21915), to the general fund.
    32    2. $1,000,000 from the general fund to the combined gifts, grants  and
    33  bequests  fund, breast cancer research and education account (20155), an
    34  amount equal to the monies collected and deposited into that account  in
    35  the previous fiscal year.
    36    3.  $250,000  from  the general fund to the combined gifts, grants and
    37  bequests  fund,  prostate  cancer  research,  detection,  and  education
    38  account  (20183),  an amount equal to the moneys collected and deposited
    39  into that account in the previous fiscal year.
    40    4. $500,000 from the general fund to the combined  gifts,  grants  and
    41  bequests  fund,  Alzheimer's  disease  research  and  assistance account
    42  (20143), an amount equal to the moneys collected and deposited into that
    43  account in the previous fiscal year.
    44    5. $30,295,000 from the HCRA resources fund (20800) to  the  miscella-
    45  neous  special  revenue  fund, empire state stem cell trust fund account
    46  (22161).
    47    6. $30,000,000 from any of the department of  health  accounts  within
    48  the  federal health and human services fund to the miscellaneous special
    49  revenue fund, quality of care account (21915).
    50    7. $6,000,000 from the miscellaneous special revenue fund, certificate
    51  of need account (21920), to the  miscellaneous  capital  projects  fund,
    52  healthcare IT capital subfund.
    53    8.  $1,000,000  from  the miscellaneous special revenue fund, adminis-
    54  tration program account (21982), to the miscellaneous  capital  projects
    55  fund, healthcare IT capital account (32216).

        S. 4610--A                         107                        A. 6721--A
 
     1    9.  $1,000,000  from  the  miscellaneous  special  revenue fund, vital
     2  records account (22103), to the  miscellaneous  capital  projects  fund,
     3  healthcare IT capital account (32216).
     4    10.  $55,000,000  from  the HCRA resources fund (20800) to the capital
     5  projects fund (30000).
     6    11. $3,700,000 from the miscellaneous  New  York  state  agency  fund,
     7  medical assistance account to the general fund.
     8    12.  $6,740,000  from  the general fund to the medical marihuana trust
     9  fund, health operation and oversight account (23755).
    10    13. $4,096,000 from the HCRA resources fund (20800), to the  miscella-
    11  neous special revenue fund, cigarette strike force account.
    12    14.  $3,086,000  from  the miscellaneous special revenue fund, certif-
    13  icate of need account (21920), to the general fund.
    14    Labor:
    15    1. $400,000 from the miscellaneous special revenue fund, DOL  fee  and
    16  penalty account (21923), to the child performer's protection fund, child
    17  performer protection account (20401).
    18    2. $8,400,000 from the miscellaneous special revenue fund, DOL fee and
    19  penalty account (21923), to the general fund.
    20    3.  $3,300,000  from  the  unemployment insurance interest and penalty
    21  fund,  unemployment  insurance  special  interest  and  penalty  account
    22  (23601), to the general fund.
    23    Mental Hygiene:
    24    1.  $10,000,000  from  the  miscellaneous special revenue fund, mental
    25  hygiene patient income account (21909),  to  the  miscellaneous  special
    26  revenue fund, federal salary sharing account (22056).
    27    2.  $15,000,000  from  the  miscellaneous special revenue fund, mental
    28  hygiene patient income account (21909),  to  the  miscellaneous  special
    29  revenue fund, provider of service accounts (21903).
    30    3.  $15,000,000  from  the  miscellaneous special revenue fund, mental
    31  hygiene program fund  account  (21907),  to  the  miscellaneous  special
    32  revenue fund, provider of service account (21903).
    33    4.  $1,400,000,000  from the general fund to the miscellaneous special
    34  revenue fund, mental hygiene patient income account (21909).
    35    5. $1,850,000,000 from the general fund to the  miscellaneous  special
    36  revenue fund, mental hygiene program fund account (21907).
    37    6.  $100,000,000  from  the miscellaneous special revenue fund, mental
    38  hygiene program fund account (21907), to the general fund.
    39    7. $100,000,000 from the miscellaneous special  revenue  fund,  mental
    40  hygiene patient income account (21909), to the general fund.
    41    8.  $292,888,000  from  the chemical dependence service fund, chemical
    42  dependence service account (22700), to the general fund.
    43    Public Protection:
    44    1. $1,350,000 from the miscellaneous special revenue  fund,  emergency
    45  management account (21944), to the general fund.
    46    2.  $3,300,000  from  the  general  fund  to the miscellaneous special
    47  revenue fund, recruitment incentive account (22171).
    48    3. $13,000,000 from the general fund to  the  correctional  industries
    49  revolving   fund,   correctional  industries  internal  service  account
    50  (55350).
    51    4. $3,000,000 from the federal miscellaneous  operating  grants  fund,
    52  DMNA damage account (25324), to the general fund.
    53    5.  $14,300,000  from  the  general  fund to the miscellaneous special
    54  revenue fund, crimes against revenue program account (22015).
    55    6. $22,900,000 from the miscellaneous special revenue  fund,  criminal
    56  justice improvement account (21945), to the general fund.

        S. 4610--A                         108                        A. 6721--A
 
     1    7.  $50,000,000 from the miscellaneous special revenue fund, statewide
     2  public safety communications account (22123), to the general fund.
     3    8.  $106,000,000  from  the state police motor vehicle law enforcement
     4  and motor vehicle theft  and  insurance  fraud  prevention  fund,  state
     5  police  motor  vehicle  enforcement account (22802), to the general fund
     6  for state operation expenses of the division of state police.
     7    9. $21,500,000 from the general fund to  the  correctional  facilities
     8  capital improvement fund (32350).
     9    10.  $5,000,000  from  the  general  fund to the dedicated highway and
    10  bridge trust fund (30050) for the purpose of work zone safety activities
    11  provided by the division of state police for the department of transpor-
    12  tation.
    13    11. $5,000,000 from the miscellaneous special revenue fund,  statewide
    14  public  safety  communications  account (22123), to the capital projects
    15  fund (30000).
    16    12. $2,900,000 from the  miscellaneous  special  revenue  fund,  legal
    17  services assistance account (22096), to the general fund.
    18    13.  $300,000  from the state police motor vehicle law enforcement and
    19  motor vehicle theft and insurance fraud prevention fund,  motor  vehicle
    20  theft and insurance fraud account (22801), to the general fund.
    21    Transportation:
    22    1. $17,672,000 from the federal miscellaneous operating grants fund to
    23  the  miscellaneous special revenue fund, New York Metropolitan Transpor-
    24  tation Council account (21913).
    25    2. $20,147,000 from the federal capital projects fund to the miscella-
    26  neous special revenue fund, New York Metropolitan Transportation Council
    27  account (21913).
    28    3. $15,700,000 from the miscellaneous special revenue fund, compulsory
    29  insurance account (22087), to the general fund.
    30    4. $14,878,096 from the general fund to the mass transportation  oper-
    31  ating  assistance  fund, public transportation systems operating assist-
    32  ance account (21401), of which $12,000,000 constitutes the base need for
    33  operations.
    34    5. $728,507,000 from the general fund to  the  dedicated  highway  and
    35  bridge trust fund (30050).
    36    6.  $606,000  from  the  miscellaneous  special revenue fund, accident
    37  prevention course program account (22094), to the general fund.
    38    7. $6,000 from the  miscellaneous  special  revenue  fund,  motorcycle
    39  safety account (21976), to the general fund.
    40    8.  $309,250,000 from the general fund to the MTA financial assistance
    41  fund, mobility tax trust account (23651).
    42    9. $20,000,000 from the mass transportation operating assistance fund,
    43  metropolitan mass transportation operating assistance  account  (21402),
    44  to  the  general  debt  service  fund  (40151), for reimbursement of the
    45  state's expenses in connection with payments of debt service and related
    46  expenses for the metropolitan transportation authority's  state  service
    47  contract bonds.
    48    10.  $5,000,000 from the miscellaneous special revenue fund, transpor-
    49  tation regulation account (22067) to the dedicated  highway  and  bridge
    50  trust  fund  (30050),  for  disbursements  made from such fund for motor
    51  carrier safety that are in excess of the amounts deposited in the  dedi-
    52  cated highway and bridge trust fund (30050) for such purpose pursuant to
    53  section 94 of the transportation law.
    54    11.  $121,548,000  from  the  mass transportation operating assistance
    55  fund, metropolitan  mass  transportation  operating  assistance  account
    56  (21402),  to the transit assistance for capital investments fund, metro-

        S. 4610--A                         109                        A. 6721--A
 
     1  politan  transit  assistance  for  capital  investments   account,   for
     2  disbursements  made  from such fund pursuant to a chapter of the laws of
     3  2015.
     4    Miscellaneous:
     5    1. $200,000,000 from the general fund to any funds or accounts for the
     6  purpose of reimbursing certain outstanding accounts receivable balances.
     7    2.  $500,000,000  from  the general fund to the debt reduction reserve
     8  fund (40000).
     9    3. $450,000,000 from the New York state storm  recovery  capital  fund
    10  (33000) to the revenue bond tax fund (40152).
    11    4.  $15,500,000  from  the general fund, community projects account GG
    12  (10256), to the general fund, state purposes account (10050).
    13    5. $4,550,000,000 from the general fund to the  dedicated  infrastruc-
    14  ture investment fund infrastructure investment account.
    15    6. Upon request of the director of the budget, up to $850,000,000 from
    16  the  general fund to any special revenue fund or account, agency fund or
    17  account, or any combination of funds or accounts.
    18    § 3. Notwithstanding any law to the contrary, and in  accordance  with
    19  section 4 of the state finance law, the comptroller is hereby authorized
    20  and directed to transfer, on or before March 31, 2016:
    21    1.  Upon request of the commissioner of environmental conservation, up
    22  to $11,354,000 from revenues credited to any of the department of  envi-
    23  ronmental  conservation special revenue funds, including $3,285,400 from
    24  the environmental protection and oil spill  compensation  fund  (21200),
    25  and  $1,779,600 from the conservation fund (21150), to the environmental
    26  conservation special revenue fund, indirect charges account (21060).
    27    2. Upon request of the commissioner of agriculture and markets, up  to
    28  $3,000,000  from  any special revenue fund or enterprise fund within the
    29  department of agriculture and markets to the general fund, to pay appro-
    30  priate administrative expenses.
    31    3. Upon request of the commissioner of agriculture and markets, up  to
    32  $2,000,000  from  the state exposition special fund, state fair receipts
    33  account (50051) to the miscellaneous capital projects fund,  state  fair
    34  capital improvement account (32208).
    35    4.  Upon  request  of  the commissioner of the division of housing and
    36  community renewal, up to $6,221,000 from revenues credited to any  divi-
    37  sion  of  housing and community renewal federal or miscellaneous special
    38  revenue fund to the miscellaneous special revenue fund, housing indirect
    39  cost recovery account (22090).
    40    5. Upon request of the commissioner of the  division  of  housing  and
    41  community  renewal, up to $5,500,000 may be transferred from any miscel-
    42  laneous special revenue  fund  account,  to  any  miscellaneous  special
    43  revenue fund.
    44    6.  Upon  request  of the commissioner of health up to $5,000,000 from
    45  revenues credited to any of the department of health's  special  revenue
    46  funds, to the miscellaneous special revenue fund, administration account
    47  (21982).
    48    § 4. On or before March 31, 2016, the comptroller is hereby authorized
    49  and  directed  to  deposit  earnings  that would otherwise accrue to the
    50  general fund that are attributable to the operation of section  98-a  of
    51  the  state  finance  law, to the agencies internal service fund, banking
    52  services account (55057), for the purpose  of  meeting  direct  payments
    53  from such account.
    54    §  5.  Notwithstanding  any law to the contrary, upon the direction of
    55  the director of the budget and upon requisition by the state  university
    56  of  New  York,  the  dormitory  authority  of  the  state of New York is

        S. 4610--A                         110                        A. 6721--A
 
     1  directed to transfer, up to $22,000,000 in revenues generated  from  the
     2  sale  of  notes  or  bonds,  to  the  state  university  of New York for
     3  reimbursement of bondable equipment for further transfer to the  state's
     4  general fund.
     5    §  6.  Notwithstanding any law to the contrary, and in accordance with
     6  section 4 of the state finance law, the comptroller is hereby authorized
     7  and directed to transfer, upon request of the director of the budget and
     8  upon consultation with the state university chancellor  or  his  or  her
     9  designee,  on or before March 31, 2016, up to $16,000,000 from the state
    10  university income fund general revenue  account  (22653)  to  the  state
    11  general  fund for debt service costs related to campus supported capital
    12  project costs for the  NY-SUNY  2020  challenge  grant  program  at  the
    13  University at Buffalo.
    14    §  7.  Notwithstanding any law to the contrary, and in accordance with
    15  section 4 of the state finance law, the comptroller is hereby authorized
    16  and directed to transfer, upon request of the director of the budget and
    17  upon consultation with the state university chancellor  or  his  or  her
    18  designee,  on  or before March 31, 2016, up to $6,500,000 from the state
    19  university income fund general revenue  account  (22653)  to  the  state
    20  general  fund for debt service costs related to campus supported capital
    21  project costs for the  NY-SUNY  2020  challenge  grant  program  at  the
    22  University at Albany.
    23    §  8.  Notwithstanding  any  law to the contrary, the state university
    24  chancellor or his or her designee is authorized and directed to transfer
    25  estimated tuition revenue balances from the state university  collection
    26  fund  (61000)  to  the  state  university  income fund, state university
    27  general revenue offset account (22655) on or before March 31, 2016.
    28    § 9. Notwithstanding any law to the contrary, and in  accordance  with
    29  section 4 of the state finance law, the comptroller is hereby authorized
    30  and directed to transfer, upon request of the director of the budget, up
    31  to  $87,864,000  from  the  general  fund to the state university income
    32  fund, state university hospitals  income  reimbursable  account  (22656)
    33  during  the period July 1, 2015 through June 30, 2016 to reflect ongoing
    34  state subsidy of SUNY hospitals and to pay  costs  attributable  to  the
    35  SUNY hospitals' state agency status.
    36    §  10. Notwithstanding any law to the contrary, and in accordance with
    37  section 4 of the state finance law, the comptroller is hereby authorized
    38  and directed to transfer, upon request of the director of the budget, up
    39  to $1,004,249,800 from the general fund to the state  university  income
    40  fund, state university general revenue offset account (22655) during the
    41  period  of  July  1, 2015 through June 30, 2016 to support operations at
    42  the state university.
    43    § 11. Notwithstanding any law to the contrary, and in accordance  with
    44  section 4 of the state finance law, the comptroller is hereby authorized
    45  and directed to transfer, upon request of the director of the budget, up
    46  to $3,370,000 from the general fund to the state university income fund,
    47  state university general revenue offset account (22655) during the peri-
    48  od  of  April 1, 2015 through June 30, 2015 to support operations at the
    49  state university.
    50    § 12. Notwithstanding any law to the contrary, and in accordance  with
    51  section 4 of the state finance law, the comptroller is hereby authorized
    52  and  directed to transfer, upon request of the state university chancel-
    53  lor or his or her designee, up to $55,000,000 from the state  university
    54  income  fund,  state  university  hospitals  income reimbursable account
    55  (22656), for services and expenses of hospital  operations  and  capital
    56  expenditures at the state university hospitals; and the state university

        S. 4610--A                         111                        A. 6721--A
 
     1  income  fund,  Long  Island  veterans' home account (22652) to the state
     2  university capital projects fund (32400) on or before June 30, 2016.
     3    §  12-a.  Subdivision  2 of section 92-cc of the state finance law, as
     4  amended by section 17 of part U of chapter 59 of the laws  of  2012,  is
     5  amended to read as follows:
     6    2.  Such  fund shall have a maximum balance not to exceed [three] five
     7  per centum of the aggregate amount projected to be  disbursed  from  the
     8  general  fund during the fiscal year immediately following the then-cur-
     9  rent fiscal year. At the request of the  director  of  the  budget,  the
    10  state comptroller shall transfer monies to the rainy day reserve fund up
    11  to  and including an amount equivalent to [three-tenths of] seventy-five
    12  one-hundredths of one per centum of the aggregate amount projected to be
    13  disbursed from the general fund during  the  then-current  fiscal  year,
    14  unless  such  transfer  would  increase the rainy day reserve fund to an
    15  amount in excess of [three] five per  centum  of  the  aggregate  amount
    16  projected  to  be disbursed from the general fund during the fiscal year
    17  immediately following the then-current fiscal year, in which event  such
    18  transfer  shall be limited to such amount as will increase the rainy day
    19  reserve fund to such [three] five per centum limitation.
    20    § 13. Notwithstanding any law to the contrary, and in accordance  with
    21  section  4 of the state finance law, the comptroller, after consultation
    22  with the state university chancellor or his or her designee,  is  hereby
    23  authorized  and directed to transfer moneys, in the first instance, from
    24  the state university collection fund, Stony  Brook  hospital  collection
    25  account (61006), Brooklyn hospital collection account (61007), and Syra-
    26  cuse  hospital collection account (61008) to the state university income
    27  fund, state university hospitals income reimbursable account (22656)  in
    28  the  event  insufficient  funds  are  available  in the state university
    29  income fund, state  university  hospitals  income  reimbursable  account
    30  (22656)  to  permit the full transfer of moneys authorized for transfer,
    31  to the general fund for payment of debt  service  related  to  the  SUNY
    32  hospitals.  Notwithstanding  any law to the contrary, the comptroller is
    33  also hereby authorized and directed, after consultation with  the  state
    34  university  chancellor  or  his or her designee, to transfer moneys from
    35  the state university income fund to the state  university  income  fund,
    36  state  university  hospitals  income reimbursable account (22656) in the
    37  event insufficient funds are available in the  state  university  income
    38  fund,  state university hospitals income reimbursable account (22656) to
    39  pay hospital operating costs or to permit the full  transfer  of  moneys
    40  authorized for transfer, to the general fund for payment of debt service
    41  related to the SUNY hospitals on or before March 31, 2016.
    42    §  14.  Notwithstanding any law to the contrary, upon the direction of
    43  the director of the budget and the chancellor of the state university of
    44  New York or his or her designee, and in accordance with section 4 of the
    45  state finance law, the comptroller is hereby authorized and directed  to
    46  transfer  monies from the state university dormitory income fund (40350)
    47  to the state university residence hall rehabilitation fund (30100),  and
    48  from  the state university residence hall rehabilitation fund (30100) to
    49  the state university dormitory income fund (40350), in a net amount  not
    50  to exceed $80 million.
    51    §  15. Notwithstanding any law to the contrary, and in accordance with
    52  section 4 of the state finance law, the comptroller is hereby authorized
    53  and directed to transfer monies, upon request of  the  director  of  the
    54  budget,  on  or  before March 31, 2016, from and to any of the following
    55  accounts: the miscellaneous special revenue fund, patient income account
    56  (21909), the miscellaneous special revenue fund, mental hygiene  program

        S. 4610--A                         112                        A. 6721--A
 
     1  fund  account  (21907),  the miscellaneous special revenue fund, federal
     2  salary sharing account (22056), or the general fund in any  combination,
     3  the aggregate of which shall not exceed $350 million.
     4    §  16. Notwithstanding any law to the contrary, and in accordance with
     5  section 4 of the state finance law, the comptroller is hereby authorized
     6  and directed to transfer, at the request of the director of the  budget,
     7  up  to $500 million from the unencumbered balance of any special revenue
     8  fund or account, agency  fund  or  account,  internal  service  fund  or
     9  account,  enterprise  fund  or account, or any combination of such funds
    10  and accounts, to the general fund. The amounts transferred  pursuant  to
    11  this authorization shall be in addition to any other transfers expressly
    12  authorized  in  the  2015-16  budget. Transfers from federal funds, debt
    13  service funds, capital projects funds, the community projects  fund,  or
    14  funds  that would result in the loss of eligibility for federal benefits
    15  or federal funds pursuant to federal law, rule, or regulation as assent-
    16  ed to in chapter 683 of the laws of 1938 and chapter 700 of the laws  of
    17  1951 are not permitted pursuant to this authorization.
    18    §  16-a.  Notwithstanding  any  law to the contrary, and in accordance
    19  with section 4 of the state  finance  law,  the  comptroller  is  hereby
    20  authorized  and  directed to transfer, at the request of the director of
    21  the budget, up to 28 million dollars ($28,000,000) from the unencumbered
    22  balance of any special revenue fund or account, or combination of  funds
    23  and  accounts,  to  the community projects fund. The amounts transferred
    24  pursuant to this authorization shall be in addition to any other  trans-
    25  fers  expressly authorized in the 2014-15 budget. Transfers from federal
    26  funds, debt services funds, capital projects funds, or funds that  would
    27  result  in the loss of eligibility for federal benefits or federal funds
    28  pursuant to federal law, rule, or regulation as assented to  in  chapter
    29  683  of  the  laws  of  1938 and chapter 700 of the laws of 1951 are not
    30  permitted pursuant to this authorization. The  director  of  the  budget
    31  shall  (a) have received a request in writing from one or both houses of
    32  the legislature, and (b) notify both houses of the legislature in  writ-
    33  ing  prior  to initiating transfers pursuant to this authorization.  The
    34  comptroller shall provide the director of the budget, the chair  of  the
    35  senate  finance  committee, and the chair of the assembly ways and means
    36  committee with an accurate accounting and report of any  transfers  that
    37  occur  pursuant  to  this  section on or before the fifteenth day of the
    38  following month in which such transfers occur.
    39    § 17. Notwithstanding any law to the contrary, and in accordance  with
    40  section 4 of the state finance law, the comptroller is hereby authorized
    41  and  directed to transfer, at the request of the director of the budget,
    42  up to $100 million from any non-general fund or account, or  combination
    43  of  funds and accounts, to the miscellaneous special revenue fund, tech-
    44  nology financing account (22207) or the miscellaneous  capital  projects
    45  fund,  information technology capital financing account (32215), for the
    46  purpose  of  consolidating  technology  procurement  and  services.  The
    47  amounts transferred to the miscellaneous special revenue fund, technolo-
    48  gy  financing  account  (22207)  pursuant to this authorization shall be
    49  equal to or less than the amount of  such  monies  intended  to  support
    50  information  technology  costs  which  are  attributable, according to a
    51  plan, to such account made in pursuance  to  an  appropriation  by  law.
    52  Transfers  to  the  technology financing account shall be completed from
    53  amounts collected by non-general funds or accounts pursuant  to  a  fund
    54  deposit  schedule  or permanent statute, and shall be transferred to the
    55  technology financing account pursuant to a schedule agreed upon  by  the
    56  affected  agency commissioner. Transfers from funds that would result in

        S. 4610--A                         113                        A. 6721--A
 
     1  the loss of eligibility for federal benefits or federal  funds  pursuant
     2  to federal law, rule, or regulation as assented to in chapter 683 of the
     3  laws  of  1938  and  chapter  700  of the laws of 1951 are not permitted
     4  pursuant to this authorization.
     5    §  18. Notwithstanding any law to the contrary, and in accordance with
     6  section 4 of the state finance law, the comptroller is hereby authorized
     7  and directed to transfer, at the request of the director of the  budget,
     8  up  to $300 million from any non-general fund or account, or combination
     9  of funds and accounts, to the general fund for the  purpose  of  consol-
    10  idating  technology  procurement  and  services. The amounts transferred
    11  pursuant to this authorization shall be equal to or less than the amount
    12  of such monies intended to support information  technology  costs  which
    13  are attributable, according to a plan, to such account made in pursuance
    14  to  an  appropriation  by  law.  Transfers  to the general fund shall be
    15  completed from amounts collected by non-general funds or accounts pursu-
    16  ant to a fund deposit schedule. Transfers from funds that  would  result
    17  in  the loss of eligibility for federal benefits or federal funds pursu-
    18  ant to federal law, rule, or regulation as assented to in chapter 683 of
    19  the laws of 1938 and chapter 700 of the laws of 1951 are  not  permitted
    20  pursuant to this authorization.
    21    §  19. Notwithstanding any provision of law to the contrary, as deemed
    22  feasible and advisable by its trustees, the power authority of the state
    23  of New York is authorized and directed to (i) make a contribution to the
    24  state treasury to the credit  of  the  general  fund,  or  as  otherwise
    25  directed in writing by the director of the budget, in an amount of up to
    26  $90,000,000  for  the  state  fiscal  year commencing April 1, 2015, the
    27  proceeds of which will be utilized to support energy-related initiatives
    28  of the state, or for economic development purposes, and (ii) transfer up
    29  to $25,000,000 of any such contribution by June 30, 2015 and the remain-
    30  der of any such contribution by March 31, 2016. Such  economic  develop-
    31  ment  purposes  may  include,  but  shall  not be limited to, efforts to
    32  attract and expand business investment and  job  creation  in  New  York
    33  state  through  the  Open  for  Business program as well as all expenses
    34  associated with Global NY and  trade  missions,  domestic  and  interna-
    35  tional,  promoting  New  York businesses; provided that in the event any
    36  contributed funds are used by a state agency or public authority for the
    37  purpose of advertising and promoting the benefits  of  the  START-UP  NY
    38  program,  no  more  than sixty percent of the contributed funds used for
    39  such purpose shall be used for advertising  and  promotion  outside  the
    40  state of New York.
    41    §  20. Notwithstanding any provision of law, rule or regulation to the
    42  contrary, the New York State energy research and  development  authority
    43  is  authorized and directed to make a contribution to the state treasury
    44  to the credit of the general fund in  the  amount  of  $41,000,000  from
    45  proceeds  collected  by the authority from the auction or sale of carbon
    46  dioxide emission allowances allocated by the department of environmental
    47  conservation under the Regional Greenhouse Gas Initiative on  or  before
    48  March 31, 2016.
    49    §  21.  Subdivision  5  of section 97-rrr of the state finance law, as
    50  amended by section 20 of part I of chapter 55 of the laws  of  2014,  is
    51  amended to read as follows:
    52    5. Notwithstanding the provisions of section one hundred seventy-one-a
    53  of  the  tax law, as separately amended by chapters four hundred eighty-
    54  one and four hundred eighty-four of the laws of nineteen hundred  eight-
    55  y-one,  and notwithstanding the provisions of chapter ninety-four of the
    56  laws of two thousand eleven, or any  other  provisions  of  law  to  the

        S. 4610--A                         114                        A. 6721--A
 
     1  contrary,  during  the  fiscal  year beginning April first, two thousand
     2  [fourteen] fifteen, the  state  comptroller  is  hereby  authorized  and
     3  directed  to  deposit  to the fund created pursuant to this section from
     4  amounts  collected  pursuant  to  article  twenty-two of the tax law and
     5  pursuant to a schedule submitted by the director of the  budget,  up  to
     6  [$3,429,375,000] $3,382,279,000, as may be certified in such schedule as
     7  necessary  to  meet the purposes of such fund for the fiscal year begin-
     8  ning April first, two thousand [fourteen] fifteen.
     9    § 22. The comptroller is authorized and directed  to  deposit  to  the
    10  general fund-state purposes account reimbursements from moneys appropri-
    11  ated  or  reappropriated to the correctional facilities capital improve-
    12  ment fund by a chapter of the laws  of  2015.  Reimbursements  shall  be
    13  available  for  spending  from  appropriations made to the department of
    14  corrections and community supervision in the general fund-state purposes
    15  accounts by a chapter of the laws of 2015 for costs associated with  the
    16  administration  and  security  of  capital  projects and for other costs
    17  which are attributable, according to a plan, to such capital projects.
    18    § 23. Notwithstanding any  other  law,  rule,  or  regulation  to  the
    19  contrary, the state comptroller is hereby authorized and directed to use
    20  any  balance  remaining  in the mental health services fund debt service
    21  appropriation, after payment by the state comptroller of all obligations
    22  required pursuant to any lease, sublease, or other financing arrangement
    23  between the dormitory authority of the state of New York as successor to
    24  the New York state medical  care  facilities  finance  agency,  and  the
    25  facilities development corporation pursuant to chapter 83 of the laws of
    26  1995  and  the  department  of  mental hygiene for the purpose of making
    27  payments to the dormitory authority of the state of  New  York  for  the
    28  amount  of  the  earnings  for the investment of monies deposited in the
    29  mental health services fund that such agency determines will or may have
    30  to be rebated to the federal government pursuant to  the  provisions  of
    31  the  internal  revenue code of 1986, as amended, in order to enable such
    32  agency to maintain the exemption from federal  income  taxation  on  the
    33  interest paid to the holders of such agency's mental services facilities
    34  improvement  revenue  bonds.  Annually on or before each June 30th, such
    35  agency shall certify to the state comptroller its determination  of  the
    36  amounts  received  in the mental health services fund as a result of the
    37  investment of monies deposited therein that  will  or  may  have  to  be
    38  rebated  to  the  federal  government  pursuant to the provisions of the
    39  internal revenue code of 1986, as amended.
    40    § 24. Subdivision 8 of section 68-b  of  the  state  finance  law,  as
    41  amended  by  section 44 of part HH of chapter 57 of the laws of 2013, is
    42  amended to read as follows:
    43    8. Revenue bonds may  only  be  issued  for  authorized  purposes,  as
    44  defined  in  section  sixty-eight-a of this article. Notwithstanding the
    45  foregoing, the dormitory authority of the state of New York  [and],  the
    46  urban  development  corporation and the New York state thruway authority
    47  may issue revenue bonds for any authorized purpose  of  any  other  such
    48  authorized  issuer  through  March  thirty-first, two thousand [fifteen]
    49  twenty.  Any such revenue bonds issued by the  New  York  state  thruway
    50  authority  shall be subject to the approval of the New York state public
    51  authorities control board, pursuant to section fifty-one of  the  public
    52  authorities  law.  The  authorized  issuers  shall not issue any revenue
    53  bonds in an amount  in  excess  of  statutory  authorizations  for  such
    54  authorized  purposes.  Authorizations for such authorized purposes shall
    55  be reduced in an amount equal to the amount of revenue bonds issued  for
    56  such authorized purposes under this article. Such reduction shall not be

        S. 4610--A                         115                        A. 6721--A
 
     1  made  in relation to revenue bonds issued to fund reserve funds, if any,
     2  and costs of issuance, if these items are  not  counted  under  existing
     3  authorizations,  nor  shall  revenue bonds issued to refund bonds issued
     4  under existing authorizations reduce the amount of such authorizations.
     5    §  24-a.  Subdivision  8  of section 69-n of the state finance law, as
     6  added by section 58 of part HH of chapter 57 of the  laws  of  2013,  is
     7  amended to read as follows:
     8    8.  Revenue  bonds  may  only  be  issued  for authorized purposes, as
     9  defined in section sixty-nine-m of  this  article.  Notwithstanding  the
    10  foregoing, any authorized issuer may issue revenue bonds for any author-
    11  ized  purpose. Any such revenue bonds issued by the New York state thru-
    12  way authority shall be subject to the approval of  the  New  York  state
    13  public  authorities  control board, pursuant to section fifty-one of the
    14  public authorities law. The  authorized  issuers  shall  not  issue  any
    15  revenue  bonds  in  an  amount in excess of statutory authorizations for
    16  such authorized purposes. Authorizations for  such  authorized  purposes
    17  shall  be  reduced  in  an  amount  equal to the amount of revenue bonds
    18  issued for such authorized purposes under this article.  Such  reduction
    19  shall  not  be  made in relation to revenue bonds issued to fund reserve
    20  funds, if any, and costs of issuance, if these  items  are  not  counted
    21  under  existing authorizations, nor shall revenue bonds issued to refund
    22  bonds issued under existing authorizations reduce  the  amount  of  such
    23  authorizations.
    24    §  25.  Subdivision 1 of section 47 of section 1 of chapter 174 of the
    25  laws of 1968, constituting the New York state urban  development  corpo-
    26  ration act, as amended by section 28 of part I of chapter 55 of the laws
    27  of 2014, is amended to read as follows:
    28    1.  Notwithstanding  the  provisions of any other law to the contrary,
    29  the dormitory authority and the corporation  are  hereby  authorized  to
    30  issue  bonds  or  notes in one or more series for the purpose of funding
    31  project costs for the office of information technology services, depart-
    32  ment of  law,  and  other  state  costs  associated  with  such  capital
    33  projects.  The  aggregate  principal  amount  of  bonds authorized to be
    34  issued pursuant to this section  shall  not  exceed  [one]  two  hundred
    35  [eighty-two]  sixty-nine  million  [four]  one  hundred  forty  thousand
    36  dollars, excluding bonds issued to fund one or more debt service reserve
    37  funds, to pay costs of issuance of such bonds, and bonds or notes issued
    38  to refund or otherwise repay such bonds or notes previously issued. Such
    39  bonds and notes of the dormitory authority and the corporation shall not
    40  be a debt of the state, and the state shall not be liable  thereon,  nor
    41  shall  they be payable out of any funds other than those appropriated by
    42  the state to the dormitory authority and the corporation for  principal,
    43  interest,  and  related expenses pursuant to a service contract and such
    44  bonds and notes shall contain on the face thereof a  statement  to  such
    45  effect. Except for purposes of complying with the internal revenue code,
    46  any  interest  income  earned on bond proceeds shall only be used to pay
    47  debt service on such bonds.
    48    § 26. Section 1 of chapter 174 of the laws of 1968,  constituting  the
    49  New York state urban development corporation act, is amended by adding a
    50  new section 51 to read as follows:
    51    §  51.  1.  Notwithstanding  the  provisions  of  any other law to the
    52  contrary, the dormitory authority and the urban development  corporation
    53  are  hereby authorized to issue bonds or notes in one or more series for
    54  the purpose of funding project costs for  the  nonprofit  infrastructure
    55  capital  investment  program  and other state costs associated with such
    56  capital projects. The aggregate principal amount of bonds authorized  to

        S. 4610--A                         116                        A. 6721--A
 
     1  be  issued  pursuant  to  this  section  shall  not exceed fifty million
     2  dollars, excluding bonds issued to fund one or more debt service reserve
     3  funds, to pay costs of issuance of such bonds, and bonds or notes issued
     4  to refund or otherwise repay such bonds or notes previously issued. Such
     5  bonds  and  notes  of  the dormitory authority and the urban development
     6  corporation shall not be a debt of the state, and the state shall not be
     7  liable thereon, nor shall they be payable out of any  funds  other  than
     8  those appropriated by the state to the dormitory authority and the urban
     9  development  corporation  for  principal, interest, and related expenses
    10  pursuant to a service contract and such bonds and notes shall contain on
    11  the face thereof a statement to such  effect.  Except  for  purposes  of
    12  complying  with the internal revenue code, any interest income earned on
    13  bond proceeds shall only be used to pay debt service on such bonds.
    14    2. Notwithstanding any other provision of  law  to  the  contrary,  in
    15  order to assist the dormitory authority and the urban development corpo-
    16  ration  in undertaking the financing for project costs for the nonprofit
    17  infrastructure capital investment program and other state costs  associ-
    18  ated  with  such  capital projects, the director of the budget is hereby
    19  authorized to enter into one or more service contracts with the dormito-
    20  ry authority and the urban development corporation, none of which  shall
    21  exceed  thirty  years in duration, upon such terms and conditions as the
    22  director of the budget and the dormitory authority and the urban  devel-
    23  opment  corporation  agree,  so  as to annually provide to the dormitory
    24  authority and the urban development corporation, in the aggregate, a sum
    25  not to exceed the principal, interest, and related expenses required for
    26  such bonds and notes. Any service contract entered into pursuant to this
    27  section shall provide that the obligation of the state to pay the amount
    28  therein provided shall not constitute a debt of  the  state  within  the
    29  meaning of any constitutional or statutory provision and shall be deemed
    30  executory  only  to the extent of monies available and that no liability
    31  shall be incurred by the state beyond  the  monies  available  for  such
    32  purpose,  subject  to  annual appropriation by the legislature. Any such
    33  contract or any payments made or to be made thereunder may  be  assigned
    34  and  pledged by the dormitory authority and the urban development corpo-
    35  ration as security for its  bonds  and  notes,  as  authorized  by  this
    36  section.
    37    § 27. Subdivision 1 of section 16 of part D of chapter 389 of the laws
    38  of  1997,  relating  to  the  financing  of  the correctional facilities
    39  improvement fund and the youth facility improvement fund, as amended  by
    40  section  29  of  part I of chapter 55 of the laws of 2014, is amended to
    41  read as follows:
    42    1. Subject to the provisions of chapter 59 of the laws  of  2000,  but
    43  notwithstanding the provisions of section 18 of section 1 of chapter 174
    44  of the laws of 1968, the New York state urban development corporation is
    45  hereby  authorized  to  issue  bonds,  notes and other obligations in an
    46  aggregate principal amount not  to  exceed  seven  billion  one  hundred
    47  [forty-eight]  sixty-three  million  three  hundred  sixty-nine thousand
    48  dollars [$7,148,069,000] $7,163,369,000, and shall  include  all  bonds,
    49  notes and other obligations issued pursuant to chapter 56 of the laws of
    50  1983,  as  amended or supplemented. The proceeds of such bonds, notes or
    51  other obligations shall be paid to the state, for deposit in the correc-
    52  tional facilities capital improvement fund to pay for all or any portion
    53  of the amount or amounts paid by the state from appropriations or  reap-
    54  propriations  made to the department of corrections and community super-
    55  vision from the correctional facilities  capital  improvement  fund  for
    56  capital  projects.  The  aggregate amount of bonds, notes or other obli-

        S. 4610--A                         117                        A. 6721--A
 
     1  gations authorized to be issued pursuant to this section  shall  exclude
     2  bonds,  notes  or  other obligations issued to refund or otherwise repay
     3  bonds, notes or other obligations theretofore issued,  the  proceeds  of
     4  which  were  paid  to  the  state  for  all  or a portion of the amounts
     5  expended by the state from appropriations or  reappropriations  made  to
     6  the  department  of  corrections  and  community  supervision; provided,
     7  however, that upon any such refunding or repayment the  total  aggregate
     8  principal amount of outstanding bonds, notes or other obligations may be
     9  greater than seven billion one hundred [forty-eight] sixty-three million
    10  three    hundred    sixty-nine    thousand    dollars   [$7,148,069,000]
    11  $7,163,369,000, only if the present value of the aggregate debt  service
    12  of  the  refunding  or repayment bonds, notes or other obligations to be
    13  issued shall not exceed the present value of the aggregate debt  service
    14  of  the  bonds,  notes or other obligations so to be refunded or repaid.
    15  For the purposes hereof, the present value of the aggregate debt service
    16  of the refunding or repayment bonds, notes or other obligations  and  of
    17  the  aggregate  debt service of the bonds, notes or other obligations so
    18  refunded or repaid, shall  be  calculated  by  utilizing  the  effective
    19  interest  rate of the refunding or repayment bonds, notes or other obli-
    20  gations, which shall be that rate arrived at by doubling the semi-annual
    21  interest rate (compounded semi-annually) necessary to discount the  debt
    22  service  payments  on  the  refunding or repayment bonds, notes or other
    23  obligations from the payment dates thereof to the date of issue  of  the
    24  refunding  or  repayment  bonds,  notes  or other obligations and to the
    25  price bid including estimated accrued interest or proceeds  received  by
    26  the corporation including estimated accrued interest from the sale ther-
    27  eof.
    28    §  28.  Paragraph  (a) of subdivision 2 of section 47-e of the private
    29  housing finance law, as amended by section 30 of part I of chapter 55 of
    30  the laws of 2014, is amended to read as follows:
    31    (a) Subject to the provisions of chapter fifty-nine of the laws of two
    32  thousand, in order to enhance and encourage  the  promotion  of  housing
    33  programs  and thereby achieve the stated purposes and objectives of such
    34  housing programs, the agency shall have the power and is hereby  author-
    35  ized  from  time  to  time to issue negotiable housing program bonds and
    36  notes in such principal amount as shall be necessary to  provide  suffi-
    37  cient  funds  for the repayment of amounts disbursed (and not previously
    38  reimbursed) pursuant to law or any prior year making  capital  appropri-
    39  ations  or  reappropriations  for  the  purposes of the housing program;
    40  provided, however, that the agency may issue such bonds and notes in  an
    41  aggregate  principal amount not exceeding [two] three billion [nine] one
    42  hundred [ninety-nine]  fifty-three  million  seven  hundred  ninety-nine
    43  thousand  dollars,  plus  a principal amount of bonds issued to fund the
    44  debt service reserve fund in accordance with the  debt  service  reserve
    45  fund  requirement  established  by  the  agency  and  to  fund any other
    46  reserves that the agency reasonably deems necessary for the security  or
    47  marketability  of  such bonds and to provide for the payment of fees and
    48  other charges and expenses, including  underwriters'  discount,  trustee
    49  and rating agency fees, bond insurance, credit enhancement and liquidity
    50  enhancement  related to the issuance of such bonds and notes. No reserve
    51  fund securing the housing program bonds shall be entitled or eligible to
    52  receive state funds apportioned or appropriated to maintain  or  restore
    53  such  reserve  fund at or to a particular level, except to the extent of
    54  any deficiency resulting directly or indirectly from a  failure  of  the
    55  state to appropriate or pay the agreed amount under any of the contracts
    56  provided for in subdivision four of this section.

        S. 4610--A                         118                        A. 6721--A
 
     1    §  29.  Subdivision  (b)  of  section 11 of chapter 329 of the laws of
     2  1991, amending the state finance law and  other  laws  relating  to  the
     3  establishment of the dedicated highway and bridge trust fund, as amended
     4  by section 31 of part I of chapter 55 of the laws of 2014, is amended to
     5  read as follows:
     6    (b) Any service contract or contracts for projects authorized pursuant
     7  to  sections  10-c,  10-f,  10-g and 80-b of the highway law and section
     8  14-k of the transportation law, and entered into pursuant to subdivision
     9  (a) of this section, shall provide  for  state  commitments  to  provide
    10  annually  to  the  thruway  authority a sum or sums, upon such terms and
    11  conditions as shall be deemed appropriate by the director of the budget,
    12  to fund, or fund the debt service requirements of any bonds or any obli-
    13  gations of the thruway authority issued to  fund  or  to  reimburse  the
    14  state  for  funding  such  projects  having  a  cost  not  in  excess of
    15  [$8,120,728,000] $8,658,881,000 cumulatively by the end of  fiscal  year
    16  [2014-15] 2015-16.
    17    §  30.  Subdivision 1 of section 1689-i of the public authorities law,
    18  as amended by section 32 of part I of chapter 55 of the laws of 2014, is
    19  amended to read as follows:
    20    1. The dormitory authority  is  authorized  to  issue  bonds,  at  the
    21  request  of  the  commissioner of education, to finance eligible library
    22  construction projects pursuant to section two hundred seventy-three-a of
    23  the education law, in amounts certified  by  such  commissioner  not  to
    24  exceed  a total principal amount of [one hundred twenty-six] one hundred
    25  forty million dollars.
    26    § 31. Subdivision (a) of section 27 of part Y of  chapter  61  of  the
    27  laws  of  2005,  providing  for  the administration of certain funds and
    28  accounts related to the 2005-2006 budget, as amended by  section  33  of
    29  part I of chapter 55 of the laws of 2014, is amended to read as follows:
    30    (a)  Subject  to the provisions of chapter 59 of the laws of 2000, but
    31  notwithstanding any provisions of law to the contrary, the urban  devel-
    32  opment  corporation  is hereby authorized to issue bonds or notes in one
    33  or  more  series  in  an  aggregate  principal  amount  not  to   exceed
    34  [$149,600,000]  $155,600,000,  excluding  bonds issued to finance one or
    35  more debt service reserve funds, to pay costs of issuance of such bonds,
    36  and bonds or notes issued to refund or otherwise  repay  such  bonds  or
    37  notes  previously  issued, for the purpose of financing capital projects
    38  including IT initiatives for the division of state police, debt  service
    39  and  leases;  and  to reimburse the state general fund for disbursements
    40  made therefor. Such bonds and notes of such authorized issuer shall  not
    41  be  a  debt of the state, and the state shall not be liable thereon, nor
    42  shall they be payable out of any funds other than those appropriated  by
    43  the  state  to  such  authorized  issuer  for  debt  service and related
    44  expenses pursuant to any service contract executed pursuant to  subdivi-
    45  sion  (b)  of this section and such bonds and notes shall contain on the
    46  face thereof a statement to such effect. Except for purposes of  comply-
    47  ing  with  the internal revenue code, any interest income earned on bond
    48  proceeds shall only be used to pay debt service on such bonds.
    49    § 32. Section 44 of section 1 of chapter 174  of  the  laws  of  1968,
    50  constituting  the  New  York state urban development corporation act, as
    51  amended by section 34 of part I of chapter 55 of the laws  of  2014,  is
    52  amended to read as follows:
    53    §  44.  Issuance  of  certain  bonds  or notes. 1. Notwithstanding the
    54  provisions of any other law to the contrary, the dormitory authority and
    55  the corporation are hereby authorized to issue bonds or notes in one  or
    56  more  series  for  the purpose of funding project costs for the regional

        S. 4610--A                         119                        A. 6721--A
 
     1  economic development council  initiative,  the  economic  transformation
     2  program,  state university of New York college for nanoscale and science
     3  engineering, projects within the city of Buffalo  or  surrounding  envi-
     4  rons,  the  New  York  works economic development fund, projects for the
     5  retention of professional football in western New York, the empire state
     6  economic development fund, the  clarkson-trudeau  partnership,  the  New
     7  York  genome  center, the cornell university college of veterinary medi-
     8  cine, the olympic regional development  authority,  a  project  at  nano
     9  Utica,  onondaga  county  revitalization projects, Binghamton university
    10  school of pharmacy, New York power electronics manufacturing consortium,
    11  regional infrastructure projects, and other state costs associated  with
    12  such  projects. The aggregate principal amount of bonds authorized to be
    13  issued pursuant to this section shall not exceed two billion [two] eight
    14  hundred [three] eighty-eight million two  hundred  fifty-seven  thousand
    15  dollars, excluding bonds issued to fund one or more debt service reserve
    16  funds, to pay costs of issuance of such bonds, and bonds or notes issued
    17  to refund or otherwise repay such bonds or notes previously issued. Such
    18  bonds and notes of the dormitory authority and the corporation shall not
    19  be  a  debt of the state, and the state shall not be liable thereon, nor
    20  shall they be payable out of any funds other than those appropriated  by
    21  the  state to the dormitory authority and the corporation for principal,
    22  interest, and related expenses pursuant to a service contract  and  such
    23  bonds  and  notes  shall contain on the face thereof a statement to such
    24  effect. Except for purposes of complying with the internal revenue code,
    25  any interest income earned on bond proceeds shall only be  used  to  pay
    26  debt service on such bonds.
    27    2.  Notwithstanding  any  other  provision  of law to the contrary, in
    28  order to assist the dormitory authority and the corporation in undertak-
    29  ing the financing for project costs for the regional  economic  develop-
    30  ment  council  initiative,  the  economic  transformation program, state
    31  university of New York college for nanoscale  and  science  engineering,
    32  projects  within  the  city  of Buffalo or surrounding environs, the New
    33  York works economic development fund,  projects  for  the  retention  of
    34  professional  football  in  western  New York, the empire state economic
    35  development fund, the clarkson-trudeau partnership, the New York  genome
    36  center, the cornell university college of veterinary medicine, the olym-
    37  pic  regional  development  authority, a project at nano Utica, onondaga
    38  county revitalization projects, Binghamton university school of  pharma-
    39  cy,  New  York  power  electronics  manufacturing  consortium,  regional
    40  infrastructure projects and  other  state  costs  associated  with  such
    41  projects,  the director of the budget is hereby authorized to enter into
    42  one or more service contracts  with  the  dormitory  authority  and  the
    43  corporation,  none  of which shall exceed thirty years in duration, upon
    44  such terms and conditions as the director of the budget and the dormito-
    45  ry authority and the corporation agree, so as to annually provide to the
    46  dormitory authority and the corporation, in the aggregate, a sum not  to
    47  exceed  the  principal, interest, and related expenses required for such
    48  bonds and notes. Any service contract  entered  into  pursuant  to  this
    49  section shall provide that the obligation of the state to pay the amount
    50  therein  provided  shall  not  constitute a debt of the state within the
    51  meaning of any constitutional or statutory provision and shall be deemed
    52  executory only to the extent of monies available and that  no  liability
    53  shall  be  incurred  by  the  state beyond the monies available for such
    54  purpose, subject to annual appropriation by the  legislature.  Any  such
    55  contract  or  any payments made or to be made thereunder may be assigned

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     1  and pledged by the dormitory authority and the corporation  as  security
     2  for its bonds and notes, as authorized by this section.
     3    § 33. Subdivisions 1 and 3 of section 1285-p of the public authorities
     4  law,  subdivision 1 as amended by section 55 of part HH of chapter 57 of
     5  the laws of 2013 and subdivision 3 as amended by section 35 of part I of
     6  chapter 55 of the laws of 2014, are amended to read as follows:
     7    1. Subject to chapter fifty-nine of the  laws  of  two  thousand,  but
     8  notwithstanding any other provisions of law to the contrary, in order to
     9  assist the corporation in undertaking the administration and the financ-
    10  ing of the design, acquisition, construction, improvement, installation,
    11  and related work for all or any portion of any of the following environ-
    12  mental  infrastructure  projects  and  for the provision of funds to the
    13  state for any amounts disbursed therefor: (a) projects authorized  under
    14  the  environmental protection fund, or for which appropriations are made
    15  to the environmental protection  fund  including,  but  not  limited  to
    16  municipal   parks   and  historic  preservation,  stewardship,  farmland
    17  protection, non-point source, pollution control, Hudson River Park, land
    18  acquisition, and waterfront revitalization; (b) department  of  environ-
    19  mental conservation capital appropriations for Onondaga Lake for certain
    20  water  quality  improvement  projects in the same manner as set forth in
    21  paragraph (d) of subdivision one of section 56-0303 of the environmental
    22  conservation law; (c) for the purpose of the administration, management,
    23  maintenance, and use of the real property at the western New York nucle-
    24  ar service center; [and] (d) department  of  environmental  conservation
    25  capital  appropriations  for  the  administration,  design, acquisition,
    26  construction, improvement, installation, and related work on  department
    27  of  environmental  conservation  environmental  infrastructure projects;
    28  [and] (e) office of parks, recreation and historic  preservation  appro-
    29  priations  or reappropriations from the state parks infrastructure fund;
    30  [and] (f) capital grants for the cleaner,  greener  communities  program
    31  and  (g)  capital  costs  of  water  quality infrastructure projects the
    32  director of the division of budget and the corporation are each  author-
    33  ized  to  enter  into one or more service contracts, none of which shall
    34  exceed twenty years in duration, upon such terms and conditions  as  the
    35  director and the corporation may agree, so as to annually provide to the
    36  corporation  in  the  aggregate,  a  sum  not  to exceed the annual debt
    37  service payments and related expenses required for any bonds  and  notes
    38  authorized  pursuant to section twelve hundred ninety of this title. Any
    39  service contract entered into pursuant to  this  section  shall  provide
    40  that  the  obligation of the state to fund or to pay the amounts therein
    41  provided for shall not constitute a debt of the state within the meaning
    42  of any constitutional or statutory provision and shall be deemed  execu-
    43  tory  only  to the extent of moneys available for such purposes, subject
    44  to annual appropriation by the legislature. Any such service contract or
    45  any payments made or to be made thereunder may be assigned  and  pledged
    46  by  the  corporation  as security for its bonds and notes, as authorized
    47  pursuant to section twelve hundred ninety of this title.
    48    3. The maximum amount of bonds that may be issued for the  purpose  of
    49  financing  environmental  infrastructure  projects  authorized  by  this
    50  section shall be one billion [three] seven hundred [ninety-eight] seven-
    51  ty-five million [two] seven hundred sixty thousand dollars, exclusive of
    52  bonds issued to fund any debt service reserve funds, pay costs of  issu-
    53  ance  of  such  bonds,  and bonds or notes issued to refund or otherwise
    54  repay bonds or notes previously issued. Such  bonds  and  notes  of  the
    55  corporation shall not be a debt of the state, and the state shall not be
    56  liable  thereon,  nor  shall they be payable out of any funds other than

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     1  those appropriated by the state to the corporation for debt service  and
     2  related  expenses pursuant to any service contracts executed pursuant to
     3  subdivision one of this section, and such bonds and notes shall  contain
     4  on the face thereof a statement to such effect.
     5    §  34.  Subdivision 1 of section 45 of section 1 of chapter 174 of the
     6  laws of 1968, constituting the New York state urban  development  corpo-
     7  ration act, as amended by section 37 of part I of chapter 55 of the laws
     8  of 2014, is amended to read as follows:
     9    1.  Notwithstanding  the  provisions of any other law to the contrary,
    10  the urban development corporation of the state of  New  York  is  hereby
    11  authorized to issue bonds or notes in one or more series for the purpose
    12  of funding project costs for the implementation of a NY-SUNY and NY-CUNY
    13  2020  challenge  grant  program subject to the approval of a NY-SUNY and
    14  NY-CUNY 2020 plan or plans by the governor and either the chancellor  of
    15  the state university of New York or the chancellor of the city universi-
    16  ty  of  New York, as applicable. The aggregate principal amount of bonds
    17  authorized to be issued  pursuant  to  this  section  shall  not  exceed
    18  [$330,000,000]  $440,000,000, excluding bonds issued to fund one or more
    19  debt service reserve funds, to pay costs of issuance of such bonds,  and
    20  bonds  or  notes issued to refund or otherwise repay such bonds or notes
    21  previously issued. Such bonds and notes of the corporation shall not  be
    22  a  debt  of  the  state,  and the state shall not be liable thereon, nor
    23  shall they be payable out of any funds other than those appropriated  by
    24  the  state  to  the  corporation  for  principal,  interest, and related
    25  expenses pursuant to a service contract and such bonds and  notes  shall
    26  contain  on  the  face  thereof  a  statement to such effect. Except for
    27  purposes of complying with  the  internal  revenue  code,  any  interest
    28  income earned on bond proceeds shall only be used to pay debt service on
    29  such bonds.
    30    §  35.  Subdivision  (a)  of section 48 of part K of chapter 81 of the
    31  laws of 2002, providing for the  administration  of  certain  funds  and
    32  accounts  related  to  the 2002-2003 budget, as amended by section 38 of
    33  part I of chapter 55 of the laws of 2014, is amended to read as follows:
    34    (a) Subject to the provisions of chapter 59 of the laws  of  2000  but
    35  notwithstanding  the  provisions  of section 18 of the urban development
    36  corporation act, the corporation is hereby authorized to issue bonds  or
    37  notes  in  one  or  more  series in an aggregate principal amount not to
    38  exceed $197,000,000 excluding bonds issued to  fund  one  or  more  debt
    39  service reserve funds, to pay costs of issuance of such bonds, and bonds
    40  or  notes issued to refund or otherwise repay such bonds or notes previ-
    41  ously issued, for the purpose of  financing  capital  costs  related  to
    42  homeland  security  and  training  facilities  for the division of state
    43  police, the division of military and naval affairs, and any other  state
    44  agency,  including  the reimbursement of any disbursements made from the
    45  state capital projects fund, and is hereby authorized to issue bonds  or
    46  notes  in  one  or  more  series in an aggregate principal amount not to
    47  exceed [$317,800,000] $469,800,000, excluding bonds issued to  fund  one
    48  or  more  debt  service  reserve funds, to pay costs of issuance of such
    49  bonds, and bonds or notes issued to refund or otherwise repay such bonds
    50  or notes previously issued, for the purpose of financing improvements to
    51  State office buildings and other facilities located statewide, including
    52  the reimbursement of any  disbursements  made  from  the  state  capital
    53  projects  fund.  Such  bonds and notes of the corporation shall not be a
    54  debt of the state, and the state shall not be liable thereon, nor  shall
    55  they  be  payable  out of any funds other than those appropriated by the
    56  state to the corporation for debt service and related expenses  pursuant

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     1  to  any  service  contracts executed pursuant to subdivision (b) of this
     2  section, and such bonds and notes shall contain on the  face  thereof  a
     3  statement to such effect.
     4    § 36. Subdivision 1 of section 386-b of the public authorities law, as
     5  amended  by  section  39 of part I of chapter 55 of the laws of 2014, is
     6  amended to read as follows:
     7    1. Notwithstanding any other provision of law  to  the  contrary,  the
     8  authority, the dormitory authority and the urban development corporation
     9  are  hereby authorized to issue bonds or notes in one or more series for
    10  the purpose of financing peace bridge  projects  and  capital  costs  of
    11  state and local highways, parkways, bridges, the New York state thruway,
    12  Indian reservation roads, and facilities, and transportation infrastruc-
    13  ture   projects   including  aviation  projects,  non-MTA  mass  transit
    14  projects, and rail service preservation projects, including work  appur-
    15  tenant  and  ancillary  thereto. The aggregate principal amount of bonds
    16  authorized to be issued pursuant to this section shall not exceed [four]
    17  one  billion   six   hundred   [sixty-five]   ninety   million   dollars
    18  [($465,000,000)]  $1,690,000,000,  excluding bonds issued to fund one or
    19  more debt service reserve funds, to pay costs of issuance of such bonds,
    20  and to refund or otherwise repay such bonds or notes previously  issued.
    21  Such  bonds  and notes of the authority, the dormitory authority and the
    22  urban development corporation shall not be a debt of the state, and  the
    23  state  shall not be liable thereon, nor shall they be payable out of any
    24  funds other than those appropriated by the state to the  authority,  the
    25  dormitory authority and the urban development corporation for principal,
    26  interest,  and  related expenses pursuant to a service contract and such
    27  bonds and notes shall contain on the face thereof a  statement  to  such
    28  effect. Except for purposes of complying with the internal revenue code,
    29  any  interest  income  earned on bond proceeds shall only be used to pay
    30  debt service on such bonds.
    31    § 37. Paragraph (c) of subdivision 19 of section 1680  of  the  public
    32  authorities law, as amended by section 40 of part I of chapter 55 of the
    33  laws of 2014, is amended to read as follows:
    34    (c) Subject to the provisions of chapter fifty-nine of the laws of two
    35  thousand,  the  dormitory  authority shall not issue any bonds for state
    36  university educational facilities purposes if the  principal  amount  of
    37  bonds to be issued when added to the aggregate principal amount of bonds
    38  issued  by  the  dormitory  authority  on and after July first, nineteen
    39  hundred eighty-eight for state university  educational  facilities  will
    40  exceed  [ten]  eleven  billion  [nine] two hundred [eighty-four] twenty-
    41  eight million dollars; provided, however, that bonds  issued  or  to  be
    42  issued  shall  be  excluded  from such limitation if: (1) such bonds are
    43  issued to refund state university construction bonds and state universi-
    44  ty construction notes previously issued by the housing  finance  agency;
    45  or  (2)  such bonds are issued to refund bonds of the authority or other
    46  obligations issued for state university educational facilities  purposes
    47  and  the  present  value  of the aggregate debt service on the refunding
    48  bonds does not exceed the present value of the aggregate debt service on
    49  the bonds refunded thereby; provided, further that upon certification by
    50  the director of the budget that the issuance of refunding bonds or other
    51  obligations issued between April first, nineteen hundred ninety-two  and
    52  March  thirty-first,  nineteen  hundred  ninety-three will generate long
    53  term economic benefits to the state, as  assessed  on  a  present  value
    54  basis,  such  issuance will be deemed to have met the present value test
    55  noted above. For purposes of this subdivision, the present value of  the
    56  aggregate  debt  service  of  the refunding bonds and the aggregate debt

        S. 4610--A                         123                        A. 6721--A
 
     1  service of the bonds refunded, shall be calculated by utilizing the true
     2  interest cost of the refunding bonds, which shall be that  rate  arrived
     3  at  by doubling the semi-annual interest rate (compounded semi-annually)
     4  necessary  to  discount the debt service payments on the refunding bonds
     5  from the payment dates thereof to the date of  issue  of  the  refunding
     6  bonds  to  the purchase price of the refunding bonds, including interest
     7  accrued thereon prior to the issuance  thereof.  The  maturity  of  such
     8  bonds,  other  than  bonds issued to refund outstanding bonds, shall not
     9  exceed the weighted average economic life, as  certified  by  the  state
    10  university construction fund, of the facilities in connection with which
    11  the  bonds  are  issued,  and  in any case not later than the earlier of
    12  thirty years or the expiration of the term of  any  lease,  sublease  or
    13  other  agreement  relating  thereto;  provided  that  no note, including
    14  renewals thereof, shall mature later than five years after the  date  of
    15  issuance  of  such  note. The legislature reserves the right to amend or
    16  repeal such limit, and the state of New York, the  dormitory  authority,
    17  the  state university of New York, and the state university construction
    18  fund are prohibited from covenanting or making any other agreements with
    19  or for the benefit of bondholders which might in  any  way  affect  such
    20  right.
    21    §  38.  Paragraph  (c) of subdivision 14 of section 1680 of the public
    22  authorities law, as amended by section 41 of part I of chapter 55 of the
    23  laws of 2014, is amended to read as follows:
    24    (c) Subject to the provisions of chapter fifty-nine of the laws of two
    25  thousand, (i) the dormitory authority shall  not  deliver  a  series  of
    26  bonds for city university community college facilities, except to refund
    27  or  to  be substituted for or in lieu of other bonds in relation to city
    28  university community college facilities pursuant to a resolution of  the
    29  dormitory  authority adopted before July first, nineteen hundred eighty-
    30  five or any resolution supplemental thereto, if the principal amount  of
    31  bonds  so  to  be  issued  when  added to all principal amounts of bonds
    32  previously issued by the dormitory authority for city university  commu-
    33  nity  college  facilities, except to refund or to be substituted in lieu
    34  of other bonds in relation to city university community college  facili-
    35  ties will exceed the sum of four hundred twenty-five million dollars and
    36  (ii)  the dormitory authority shall not deliver a series of bonds issued
    37  for city university facilities, including community college  facilities,
    38  pursuant  to a resolution of the dormitory authority adopted on or after
    39  July first, nineteen hundred eighty-five, except  to  refund  or  to  be
    40  substituted for or in lieu of other bonds in relation to city university
    41  facilities  and except for bonds issued pursuant to a resolution supple-
    42  mental to a resolution of the dormitory authority adopted prior to  July
    43  first, nineteen hundred eighty-five, if the principal amount of bonds so
    44  to  be  issued  when  added  to the principal amount of bonds previously
    45  issued pursuant to any such resolution, except bonds issued to refund or
    46  to be substituted for or in lieu of other  bonds  in  relation  to  city
    47  university  facilities,  will  exceed  seven billion [two] three hundred
    48  [seventy-three] ninety-two million [three]  seven  hundred  [thirty-one]
    49  fifty-three  thousand  dollars.  The  legislature  reserves the right to
    50  amend or repeal such limit, and the state of  New  York,  the  dormitory
    51  authority,  the city university, and the fund are prohibited from coven-
    52  anting or making any other agreements with or for the benefit  of  bond-
    53  holders which might in any way affect such right.
    54    §  39. Subdivision 10-a of section 1680 of the public authorities law,
    55  as amended by section 42 of part I of chapter 55 of the laws of 2014, is
    56  amended to read as follows:

        S. 4610--A                         124                        A. 6721--A
 
     1    10-a. Subject to the provisions of chapter fifty-nine of the  laws  of
     2  two  thousand, but notwithstanding any other provision of the law to the
     3  contrary, the maximum amount of bonds and notes to be issued after March
     4  thirty-first, two thousand two, on behalf of the state, in  relation  to
     5  any  locally sponsored community college, shall be [seven] eight hundred
     6  [seventy-six] thirty-eight million [three] four  hundred  [five]  fifty-
     7  eight  thousand  dollars.  Such  amount  shall be exclusive of bonds and
     8  notes issued to fund any reserve fund or funds, costs of issuance and to
     9  refund any outstanding bonds and notes, issued on behalf of  the  state,
    10  relating to a locally sponsored community college.
    11    §  40.  Section  1680-r  of  the  public  authorities law, as added by
    12  section 43 of part I of chapter 55 of the laws of 2014,  is  amended  to
    13  read as follows:
    14    §  1680-r.  Authorization  for  the  issuance of bonds for the capital
    15  restructuring financing program and the health care facility transforma-
    16  tion program. 1. Notwithstanding the provisions of any other law to  the
    17  contrary,  the dormitory authority and the urban development corporation
    18  are hereby authorized to issue bonds or notes in one or more series  for
    19  the  purpose  of  funding  project  costs  for the capital restructuring
    20  financing program for health care and related facilities licensed pursu-
    21  ant to the public health law or the mental hygiene law and  other  state
    22  costs associated with such capital projects and the health care facility
    23  transformation program.  The aggregate principal amount of bonds author-
    24  ized  to  be  issued pursuant to this section shall not exceed [one] two
    25  billion two hundred million dollars, excluding bonds issued to fund  one
    26  or  more  debt  service  reserve funds, to pay costs of issuance of such
    27  bonds, and bonds or notes issued to refund or otherwise repay such bonds
    28  or notes previously issued.  Such  bonds  and  notes  of  the  dormitory
    29  authority  and  the urban development corporation shall not be a debt of
    30  the state, and the state shall not be liable thereon, nor shall they  be
    31  payable  out  of any funds other than those appropriated by the state to
    32  the dormitory authority and the urban development corporation for  prin-
    33  cipal, interest, and related expenses pursuant to a service contract and
    34  such  bonds  and  notes shall contain on the face thereof a statement to
    35  such effect. Except for purposes of complying with the internal  revenue
    36  code,  any interest income earned on bond proceeds shall only be used to
    37  pay debt service on such bonds.
    38    2. Notwithstanding any other provision of  law  to  the  contrary,  in
    39  order to assist the dormitory authority and the urban development corpo-
    40  ration  in  undertaking  the financing for project costs for the capital
    41  restructuring financing program for health care and  related  facilities
    42  licensed pursuant to the public health law or the mental hygiene law and
    43  other  state  costs associated with such capital projects and the health
    44  care facility transformation program, the  director  of  the  budget  is
    45  hereby  authorized  to enter into one or more service contracts with the
    46  dormitory authority and the urban development corporation, none of which
    47  shall exceed thirty years in duration, upon such terms and conditions as
    48  the director of the budget and the dormitory  authority  and  the  urban
    49  development corporation agree, so as to annually provide to the dormito-
    50  ry  authority and the urban development corporation, in the aggregate, a
    51  sum not to exceed the principal, interest, and related expenses required
    52  for such bonds and notes. Any service contract entered into pursuant  to
    53  this  section  shall provide that the obligation of the state to pay the
    54  amount therein provided shall not constitute a debt of the state  within
    55  the  meaning  of  any constitutional or statutory provision and shall be
    56  deemed executory only to the extent of  monies  available  and  that  no

        S. 4610--A                         125                        A. 6721--A
 
     1  liability shall be incurred by the state beyond the monies available for
     2  such  purpose,  subject  to annual appropriation by the legislature. Any
     3  such contract or any payments made or  to  be  made  thereunder  may  be
     4  assigned  and  pledged by the dormitory authority and the urban develop-
     5  ment corporation as security for its bonds and notes, as  authorized  by
     6  this section.
     7    § 41. Subdivision 1 of section 17 of part D of chapter 389 of the laws
     8  of  1997,  relating  to  the  financing  of  the correctional facilities
     9  improvement fund and the youth facility improvement fund, as amended  by
    10  section  44  of  part I of chapter 55 of the laws of 2014, is amended to
    11  read as follows:
    12    1. Subject to the provisions of chapter 59 of the laws  of  2000,  but
    13  notwithstanding the provisions of section 18 of section 1 of chapter 174
    14  of the laws of 1968, the New York state urban development corporation is
    15  hereby  authorized  to  issue  bonds,  notes and other obligations in an
    16  aggregate principal amount not to exceed [four] six hundred [sixty-five]
    17  eleven million [three] two hundred [sixty-five] fifteen thousand dollars
    18  [($465,365,000)]  ($611,215,000),  which  authorization  increases   the
    19  aggregate principal amount of bonds, notes and other obligations author-
    20  ized by section 40 of chapter 309 of the laws of 1996, and shall include
    21  all bonds, notes and other obligations issued pursuant to chapter 211 of
    22  the  laws  of  1990,  as  amended  or supplemented. The proceeds of such
    23  bonds, notes or other obligations shall be paid to the state, for depos-
    24  it in the youth facilities improvement fund,  to  pay  for  all  or  any
    25  portion  of  the amount or amounts paid by the state from appropriations
    26  or reappropriations made to the office of children and  family  services
    27  from  the  youth  facilities  improvement fund for capital projects. The
    28  aggregate amount of bonds, notes and other obligations authorized to  be
    29  issued  pursuant  to  this  section  shall exclude bonds, notes or other
    30  obligations issued to refund or otherwise repay bonds,  notes  or  other
    31  obligations  theretofore  issued, the proceeds of which were paid to the
    32  state for all or a portion of the amounts expended  by  the  state  from
    33  appropriations  or  reappropriations  made to the office of children and
    34  family services; provided, however, that  upon  any  such  refunding  or
    35  repayment  the  total  aggregate  principal amount of outstanding bonds,
    36  notes or other obligations  may  be  greater  than  [four]  six  hundred
    37  [sixty-five]  eleven  million  [three]  two hundred [sixty-five] fifteen
    38  thousand dollars [($465,365,000)] ($611,215,000), only  if  the  present
    39  value of the aggregate debt service of the refunding or repayment bonds,
    40  notes  or  other  obligations  to be issued shall not exceed the present
    41  value of the aggregate debt service of the bonds, notes or  other  obli-
    42  gations  so to be refunded or repaid. For the purposes hereof, the pres-
    43  ent value of the aggregate debt service of the  refunding  or  repayment
    44  bonds,  notes  or other obligations and of the aggregate debt service of
    45  the bonds, notes or other obligations so refunded or  repaid,  shall  be
    46  calculated  by utilizing the effective interest rate of the refunding or
    47  repayment bonds, notes or other obligations, which shall  be  that  rate
    48  arrived  at  by doubling the semi-annual interest rate (compounded semi-
    49  annually) necessary to discount the debt service payments on the refund-
    50  ing or repayment bonds, notes or  other  obligations  from  the  payment
    51  dates  thereof to the date of issue of the refunding or repayment bonds,
    52  notes or other obligations and to  the  price  bid  including  estimated
    53  accrued interest or proceeds received by the corporation including esti-
    54  mated accrued interest from the sale thereof.
    55    §  42.  Paragraph  b  of  subdivision 2 of section 9-a of section 1 of
    56  chapter 392 of the laws of 1973, constituting the New York state medical

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     1  care facilities finance agency act, as amended by section 46 of  part  I
     2  of chapter 55 of the laws of 2014, is amended to read as follows:
     3    b.  The  agency shall have power and is hereby authorized from time to
     4  time to issue negotiable bonds and notes in conformity  with  applicable
     5  provisions  of  the uniform commercial code in such principal amount as,
     6  in the opinion of the agency, shall  be  necessary,  after  taking  into
     7  account  other moneys which may be available for the purpose, to provide
     8  sufficient funds to  the  facilities  development  corporation,  or  any
     9  successor agency, for the financing or refinancing of or for the design,
    10  construction, acquisition, reconstruction, rehabilitation or improvement
    11  of  mental  health  services  facilities pursuant to paragraph a of this
    12  subdivision, the payment of interest on mental health services  improve-
    13  ment  bonds and mental health services improvement notes issued for such
    14  purposes, the establishment of reserves to secure such bonds and  notes,
    15  the  cost  or  premium  of  bond insurance or the costs of any financial
    16  mechanisms which may be used to reduce the debt service  that  would  be
    17  payable  by the agency on its mental health services facilities improve-
    18  ment bonds and notes and all other expenditures of the  agency  incident
    19  to  and  necessary or convenient to providing the facilities development
    20  corporation, or any successor agency, with funds for  the  financing  or
    21  refinancing of or for any such design, construction, acquisition, recon-
    22  struction, rehabilitation or improvement and for the refunding of mental
    23  hygiene improvement bonds issued pursuant to section 47-b of the private
    24  housing  finance law; provided, however, that the agency shall not issue
    25  mental health services facilities improvement bonds  and  mental  health
    26  services  facilities  improvement notes in an aggregate principal amount
    27  exceeding seven billion [four] seven  hundred  [thirty-five]  twenty-two
    28  million  eight hundred fifteen thousand dollars, excluding mental health
    29  services facilities improvement bonds and mental health services facili-
    30  ties improvement  notes  issued  to  refund  outstanding  mental  health
    31  services facilities improvement bonds and mental health services facili-
    32  ties  improvement notes; provided, however, that upon any such refunding
    33  or repayment of mental  health  services  facilities  improvement  bonds
    34  and/or  mental  health  services  facilities improvement notes the total
    35  aggregate principal amount of outstanding mental health services facili-
    36  ties improvement bonds and mental health  facilities  improvement  notes
    37  may  be  greater  than  seven billion [four] seven hundred [thirty-five]
    38  twenty-two million eight  hundred  fifteen  thousand  dollars  only  if,
    39  except  as  hereinafter  provided with respect to mental health services
    40  facilities bonds and mental health services facilities notes  issued  to
    41  refund mental hygiene improvement bonds authorized to be issued pursuant
    42  to  the  provisions  of section 47-b of the private housing finance law,
    43  the present value of the aggregate debt  service  of  the  refunding  or
    44  repayment  bonds  to be issued shall not exceed the present value of the
    45  aggregate debt service of the  bonds  to  be  refunded  or  repaid.  For
    46  purposes hereof, the present values of the aggregate debt service of the
    47  refunding  or  repayment  bonds,  notes  or other obligations and of the
    48  aggregate debt service of the  bonds,  notes  or  other  obligations  so
    49  refunded  or  repaid,  shall  be  calculated  by utilizing the effective
    50  interest rate of the refunding or repayment bonds, notes or other  obli-
    51  gations, which shall be that rate arrived at by doubling the semi-annual
    52  interest  rate (compounded semi-annually) necessary to discount the debt
    53  service payments on the refunding or repayment  bonds,  notes  or  other
    54  obligations  from  the payment dates thereof to the date of issue of the
    55  refunding or repayment bonds, notes or  other  obligations  and  to  the
    56  price  bid  including estimated accrued interest or proceeds received by

        S. 4610--A                         127                        A. 6721--A
 
     1  the authority including estimated accrued interest from the sale  there-
     2  of.  Such  bonds,  other  than bonds issued to refund outstanding bonds,
     3  shall be scheduled to mature over a  term  not  to  exceed  the  average
     4  useful  life, as certified by the facilities development corporation, of
     5  the projects for which the bonds are issued, and in any case  shall  not
     6  exceed  thirty  years  and the maximum maturity of notes or any renewals
     7  thereof shall not exceed five years from the date of the original  issue
     8  of such notes. Notwithstanding the provisions of this section, the agen-
     9  cy  shall have the power and is hereby authorized to issue mental health
    10  services facilities improvement  bonds  and/or  mental  health  services
    11  facilities  improvement  notes  to  refund  outstanding  mental  hygiene
    12  improvement bonds authorized to be issued pursuant to the provisions  of
    13  section  47-b of the private housing finance law and the amount of bonds
    14  issued or outstanding for  such  purposes  shall  not  be  included  for
    15  purposes  of  determining  the  amount  of bonds issued pursuant to this
    16  section. The director of the budget shall allocate the aggregate princi-
    17  pal authorized to be issued by the agency among  the  office  of  mental
    18  health,  office  for  people  with  developmental  disabilities, and the
    19  office of alcoholism and substance abuse services, in consultation  with
    20  their respective commissioners to finance bondable appropriations previ-
    21  ously approved by the legislature.
    22    §  43.  Paragraph  (b) of subdivision 3 of section 1 and clause (B) of
    23  subparagraph (iii) of paragraph (j) of subdivision 4  of  section  1  of
    24  part D of chapter 63 of the laws of 2005 relating to the composition and
    25  responsibilities of the New York state higher education capital matching
    26  grant  board,  as amended by section 46-c of part I of chapter 55 of the
    27  laws of 2014, is amended to read as follows:
    28    (b) Within amounts appropriated therefor, the board is hereby  author-
    29  ized  and  directed  to award matching capital grants totaling [180] 210
    30  million dollars. Each college shall be eligible for a grant award amount
    31  as determined by the calculations pursuant to subdivision five  of  this
    32  section.  In  addition,  such  colleges shall be eligible to compete for
    33  additional funds pursuant to paragraph (h) of subdivision four  of  this
    34  section.
    35    (B)  The  dormitory authority shall not issue any bonds or notes in an
    36  amount in excess of [180] 210 million dollars for the purposes  of  this
    37  section;  excluding  bonds  or  notes  issued  to  fund one or more debt
    38  service reserve funds, to pay costs of issuance of such bonds, and bonds
    39  or notes issued to refund or otherwise repay such bonds or notes  previ-
    40  ously issued. Except for purposes of complying with the internal revenue
    41  code,  any  interest  on  bond  proceeds  shall only be used to pay debt
    42  service on such bonds.
    43    § 44. Subdivision 1 of section 49 of section 1 of chapter 174  of  the
    44  laws  of  1968, constituting the New York state urban development corpo-
    45  ration act, as amended by section 46-a of part I of chapter  55  of  the
    46  laws of 2014, is amended to read as follows:
    47    1.  Notwithstanding  the  provisions of any other law to the contrary,
    48  the dormitory authority and the corporation  are  hereby  authorized  to
    49  issue  bonds  or  notes in one or more series for the purpose of funding
    50  project costs for the state and municipal facilities program  and  other
    51  state costs associated with such capital projects. The aggregate princi-
    52  pal  amount  of  bonds  authorized to be issued pursuant to this section
    53  shall not exceed [seven hundred seventy] one billion one hundred  fifty-
    54  five  million  dollars,  excluding bonds issued to fund one or more debt
    55  service reserve funds, to pay costs of issuance of such bonds, and bonds
    56  or notes issued to refund or otherwise repay such bonds or notes  previ-

        S. 4610--A                         128                        A. 6721--A
 
     1  ously  issued.  Such  bonds and notes of the dormitory authority and the
     2  corporation shall not be a debt of the state, and the state shall not be
     3  liable thereon, nor shall they be payable out of any  funds  other  than
     4  those  appropriated  by  the  state  to  the dormitory authority and the
     5  corporation for principal, interest, and related expenses pursuant to  a
     6  service  contract  and  such  bonds  and notes shall contain on the face
     7  thereof a statement to such effect. Except  for  purposes  of  complying
     8  with  the  internal  revenue  code,  any  interest income earned on bond
     9  proceeds shall only be used to pay debt service on such bonds.
    10    § 45. Intentionally omitted.
    11    § 46. Subdivision 1 of section 386-a of the public authorities law, as
    12  added by section 46 of part U of chapter 59 of  the  laws  of  2012,  is
    13  amended to read as follows:
    14    1.  Notwithstanding  any  other  provision of law to the contrary, the
    15  authority, the dormitory authority and the urban development corporation
    16  are hereby authorized to issue bonds or notes in one or more series  for
    17  the  purpose  of  assisting the metropolitan transportation authority in
    18  the financing of transportation facilities  as  defined  in  subdivision
    19  seventeen  of  section  twelve  hundred  sixty-one  of this chapter. The
    20  aggregate principal amount of bonds authorized to be issued pursuant  to
    21  this section shall not exceed one billion [seven] five hundred [seventy]
    22  twenty  million  dollars  [($770,000,000)]  ($1,520,000,000),  excluding
    23  bonds issued to fund one or more debt  service  reserve  funds,  to  pay
    24  costs  of  issuance of such bonds, and to refund or otherwise repay such
    25  bonds or notes previously issued. Such bonds and notes of the authority,
    26  the dormitory authority and the urban development corporation shall  not
    27  be  a  debt of the state, and the state shall not be liable thereon, nor
    28  shall they be payable out of any funds other than those appropriated  by
    29  the state to the authority, the dormitory authority and the urban devel-
    30  opment  corporation for principal, interest, and related expenses pursu-
    31  ant to a service contract and such bonds and notes shall contain on  the
    32  face  thereof a statement to such effect. Except for purposes of comply-
    33  ing with the internal revenue code, any interest income earned  on  bond
    34  proceeds shall only be used to pay debt service on such bonds.
    35    §  47.  This  act shall take effect immediately and shall be deemed to
    36  have been in full force and effect on and after April 1, 2015; provided,
    37  however, that the provisions of sections one through eight and  sections
    38  thirteen  through  twenty  of this act shall expire March 31, 2016, when
    39  upon such date the provisions of such sections shall be deemed repealed.
 
    40                                   PART J
 
    41    Section 1. The public health law is amended by adding  a  new  section
    42  2825-a to read as follows:
    43    §  2825-a.  Health  care facility transformation program: Kings county
    44  project. 1. A Kings county health care facility  transformation  program
    45  is hereby established under the joint administration of the commissioner
    46  and  the  president  of the dormitory authority of the state of New York
    47  for the purpose of strengthening  and  protecting  continued  access  to
    48  health  care  services in communities. The program shall provide capital
    49  funding in support of projects that  replace  inefficient  and  outdated
    50  facilities  as  part  of  a  merger, consolidation, acquisition or other
    51  significant corporate restructuring activity intended to create a finan-
    52  cially sustainable system of care. The issuance of any  bonds  or  notes
    53  hereunder  shall be subject to the approval of the director of the divi-
    54  sion of the budget, and any projects  funded  through  the  issuance  of

        S. 4610--A                         129                        A. 6721--A
 
     1  bonds  or notes hereunder shall be approved by the New York state public
     2  authorities control board, as required under section  fifty-one  of  the
     3  public authorities law.
     4    2.  The  commissioner  and  the president of the authority shall enter
     5  into an agreement, subject to approval by the director  of  the  budget,
     6  and  subject  to section sixteen hundred eighty-r of the public authori-
     7  ties law, for the purposes of awarding, distributing, and  administering
     8  the  funds  made  available  pursuant to this section. Such funds may be
     9  distributed by the commissioner and the president of the  authority  for
    10  capital grants to general hospitals, residential health care facilities,
    11  diagnostic  and treatment centers, primary care providers, and home care
    12  providers, certified or licensed pursuant to article thirty-six of  this
    13  chapter,  for capital non-operational works or purposes that support the
    14  purposes set forth in this section. A copy of such  agreement,  and  any
    15  amendments thereto, shall be provided to the chair of the senate finance
    16  committee,  the  chair of the assembly ways and means committee, and the
    17  director of the division of budget no later than thirty  days  prior  to
    18  the  release  of  a  request  for  applications  for  funding under this
    19  program. Projects awarded under section twenty-eight hundred twenty-five
    20  of this article shall not be eligible for grants or awards  made  avail-
    21  able under this section.
    22    3.  Notwithstanding  section  one  hundred  sixty-three  of  the state
    23  finance law or any inconsistent provision of law to the contrary, up  to
    24  seven hundred million dollars of the funds appropriated for this program
    25  shall be awarded without a competitive bid or request for proposal proc-
    26  ess for capital grants to health care providers (hereafter "applicants")
    27  located in the county of Kings.
    28    (a)  Eligible  applicants  shall serve communities whose residents are
    29  experiencing significant levels of health care  disparities  and  health
    30  care  needs  compared to other communities within the county of Kings as
    31  evidenced by:
    32    (i) a high number of Medicaid enrollees and uninsured individuals;
    33    (ii) elevated blood lead level rates among  children,  high  rates  of
    34  diabetes,  high  blood pressure, asthma, obesity, infant death or prema-
    35  ture birth,  heart  failure,  behavioral  health  conditions,  substance
    36  abuse;
    37    (iii)  low  levels  of  income, high rates of unemployment, distressed
    38  housing conditions, and poor nutritional status;
    39    (iv) other risk factors as determined  by  the  commissioner  and  the
    40  president of the authority; and
    41    (b) Such eligible applicant shall:
    42    (i)  (A) have a loss from operations for each of the three consecutive
    43  preceding years as evidenced by audited financial statements;
    44    (B) have a negative fund balance or negative equity position  in  each
    45  of  the  three  preceding years as evidenced by audited financial state-
    46  ments; and
    47    (C) have a current ratio of less than 1:1 for each  of  three  consec-
    48  utive preceding years; or
    49    (ii)  be  deemed by the commissioner and president of the authority to
    50  be a provider that fulfills or will fulfill an unmet  health  care  need
    51  for  acute  inpatient,  outpatient,  primary  or residential health care
    52  services in a community.
    53    4. In determining awards for eligible applicants under  this  section,
    54  the  commissioner  and  the  president  of  the authority shall consider
    55  criteria including, but not limited to:

        S. 4610--A                         130                        A. 6721--A
 
     1    (a) the extent to which the proposed capital project  will  contribute
     2  to  the  long  term  sustainability  of the applicant or preservation of
     3  essential health services in the community or communities served by  the
     4  applicant;
     5    (b)  the  extent  to  which the proposed project or purpose is aligned
     6  with delivery system reform incentive payment  ("DSRIP")  program  goals
     7  and objectives;
     8    (c)  the relationship between the proposed capital project and identi-
     9  fied community need;
    10    (d) the extent that the proposed capital project furthers the develop-
    11  ment of primary care and other outpatient services;
    12    (e) the extent to which the proposed capital project benefits Medicaid
    13  enrollees and uninsured individuals;
    14    (f) the extent to  which  the  applicant  has  engaged  the  community
    15  affected  by the proposed capital project and the manner in which commu-
    16  nity engagement has shaped such capital project; and
    17    (g) the extent to which the proposed capital project addresses  poten-
    18  tial risk to patient safety and welfare.
    19    5.  The  department shall provide a report on a quarterly basis to the
    20  chairs of the senate finance, assembly ways and means, senate health and
    21  assembly health committees. Such reports shall  be  submitted  no  later
    22  than sixty days after the close of the quarter, and shall conform to the
    23  reporting  requirements  of  subdivision  twenty of section twenty-eight
    24  hundred seven of this article, as applicable.
    25    § 2. The public health law is amended by adding a new  section  2825-b
    26  to read as follows:
    27    §  2825-b.  Oneida county health care facility transformation program:
    28  Oneida county project. 1. An Oneida county health care  facility  trans-
    29  formation  program  is hereby established under the joint administration
    30  of the commissioner and the president of the dormitory authority of  the
    31  state  of  New  York  for  the  purpose  of strengthening and protecting
    32  continued access to health care services  in  communities.  The  program
    33  shall  provide  capital  funding  in  support of projects located in the
    34  largest population center in Oneida  county  that  consolidate  multiple
    35  licensed  health  care facilities into an integrated system of care. The
    36  issuance of any bonds  or  notes  hereunder  shall  be  subject  to  the
    37  approval of the director of the division of the budget, and any projects
    38  funded  through  the  issuance  of  bonds  or  notes  hereunder shall be
    39  approved by the New York state  public  authorities  control  board,  as
    40  required under section fifty-one of the public authorities law.
    41    2.  The  commissioner  and  the president of the authority shall enter
    42  into an agreement, subject to approval by the director  of  the  budget,
    43  and  subject  to section sixteen hundred eighty-r of the public authori-
    44  ties law, for the purposes of awarding, distributing, and  administering
    45  the  funds  made  available  pursuant to this section. Such funds may be
    46  distributed by the commissioner and the president of the  authority  for
    47  capital  grants  to  general hospitals for the purposes of consolidating
    48  multiple licensed health care facilities into an  integrated  system  of
    49  care  for  capital  non-operational  works  or purposes that support the
    50  purposes set forth in this section. A copy of such  agreement,  and  any
    51  amendments thereto, shall be provided to the chair of the senate finance
    52  committee,  the  chair of the assembly ways and means committee, and the
    53  director of the division of budget no later than thirty  days  prior  to
    54  the  release  of  a  request  for  applications  for  funding under this
    55  program. Projects awarded under section twenty-eight hundred twenty-five

        S. 4610--A                         131                        A. 6721--A
 
     1  of this article shall not be eligible for grants or awards  made  avail-
     2  able under this section.
     3    3.  Notwithstanding  section  one  hundred  sixty-three  of  the state
     4  finance law or any inconsistent provision of law to the contrary, up  to
     5  three hundred million dollars of the funds appropriated for this program
     6  shall be awarded without a competitive bid or request for proposal proc-
     7  ess for capital grants to health care providers (hereafter "applicants")
     8  located in the county of Oneida.
     9    4.  In  determining awards for eligible applicants under this section,
    10  the commissioner and the  president  of  the  authority  shall  consider
    11  criteria including, but not limited to:
    12    (a)  the  extent to which the proposed capital project will contribute
    13  to the integration of health care services and long term  sustainability
    14  of  the  applicant  or  preservation of essential health services in the
    15  community or communities served by the applicant;
    16    (b) the extent to which the proposed project  or  purpose  is  aligned
    17  with  delivery  system  reform incentive payment ("DSRIP") program goals
    18  and objectives;
    19    (c) the relationship between the proposed capital project and  identi-
    20  fied community need;
    21    (d) the extent that the proposed capital project furthers the develop-
    22  ment of primary care and other outpatient services;
    23    (e) the extent to which the proposed capital project benefits Medicaid
    24  enrollees and uninsured individuals;
    25    (f)  the  extent  to  which  the  applicant  has engaged the community
    26  affected by the proposed capital project and the manner in which  commu-
    27  nity engagement has shaped such capital project; and
    28    (g)  the extent to which the proposed capital project addresses poten-
    29  tial risk to patient safety and welfare.
    30    5. The department shall provide a report on a quarterly basis  to  the
    31  chairs of the senate finance, assembly ways and means, senate health and
    32  assembly  health  committees.  Such  reports shall be submitted no later
    33  than sixty days after the close of the quarter, and shall conform to the
    34  reporting requirements of subdivision  twenty  of  section  twenty-eight
    35  hundred seven of this article, as applicable.
    36    §  3.  The public health law is amended by adding a new section 2825-c
    37  to read as follows:
    38    § 2825-c. Essential health care provider support program.  1. Notwith-
    39  standing section one hundred sixty-three of the state  finance  law,  or
    40  any inconsistent provision of law to the contrary, within amounts appro-
    41  priated,  funds  may  be  allocated  and distributed by the commissioner
    42  without a competitive bid or request for proposal process, for grants to
    43  essential health care providers  to  support  debt  retirement,  capital
    44  projects or non-capital projects that facilitate health care transforma-
    45  tion,  including  mergers,  consolidation,  and restructuring activities
    46  intended to create a financially  sustainable  system  of  care.  Grants
    47  shall  not  be  available  to  support  general  operating expenses. For
    48  purposes of this section, an essential health care provider is a  hospi-
    49  tal  or  hospital  system  that,  in the discretion of the commissioner,
    50  offers health care services within a  defined  geographic  region  where
    51  such  services  would otherwise be unavailable to the population of such
    52  region.
    53    2. The commissioner shall award grants for  projects  consistent  with
    54  the purposes of this section. Eligible applicants shall meet the follow-
    55  ing criteria:

        S. 4610--A                         132                        A. 6721--A
 
     1    (a)  (i) have a loss from operations for each of the three consecutive
     2  preceding years as evidenced by audited financial statements;
     3    (ii)  have a negative fund balance or negative equity position in each
     4  of the three preceding years as evidenced by  audited  financial  state-
     5  ments; and
     6    (iii)  have a current ratio of less than 1:1 for each of three consec-
     7  utive preceding years; or
     8    (b) be deemed by the commissioner to be a provider  that  fulfills  or
     9  will  fulfill  an unmet need for acute inpatient, outpatient, primary or
    10  residential health care services in a defined  geographic  region  where
    11  such  services  would be otherwise unavailable to the population of such
    12  region.
    13    3. Such awards shall be distributed pursuant  to  criteria,  including
    14  but not limited to:
    15    (a)  the  extent  to which the proposed project will contribute to the
    16  long term sustainability of the applicant or preservation  of  essential
    17  health care services in a community;
    18    (b)  the  extent  to  which the proposed project or purpose is aligned
    19  with delivery system reform incentive payment  ("DSRIP")  program  goals
    20  and objectives;
    21    (c) consideration of geographic distribution of funds;
    22    (d)  the  relationship  between the proposed project and an identified
    23  community need;
    24    (e) the extent to  which  the  applicant  has  access  to  alternative
    25  financing;
    26    (f)  the extent to which the proposed project furthers the development
    27  of primary care;
    28    (g) the extent to which the proposed project benefits Medicaid  enrol-
    29  lees and uninsured individuals;
    30    (h)  the  extent  to  which  the  applicant  has engaged the community
    31  affected by the proposed project and the manner in which  the  community
    32  engagement has shaped such project; and
    33    (i)  the extent to which the proposed project addresses potential risk
    34  to patient safety and welfare.
    35    4. Disbursement of awards made  pursuant  to  this  section  shall  be
    36  conditioned  on  the  awardee  achieving certain process and performance
    37  metrics and milestones as determined  in  the  sole  discretion  of  the
    38  commissioner.  Such metrics and milestones shall be structured to ensure
    39  that the health care transformation and provider sustainability goals of
    40  the project are achieved, and  such  metrics  and  milestones  shall  be
    41  included in grant disbursement agreements or other contractual documents
    42  as required by the commissioner.
    43    5.  The department shall provide a report on a quarterly basis to  the
    44  chairs of the senate finance, assembly ways and means, senate health and
    45  assembly health committees. Such reports shall  be  submitted  no  later
    46  than  sixty  days after the close of the quarter, and shall include, for
    47  each award, the name of the applicant, a description of the  project  or
    48  purpose,  the  amount  of  the  award,  disbursement date, and status of
    49  achievement of process and performance metrics and  milestones  pursuant
    50  to subdivision four of this section.
    51    §  4.  The  opening  paragraph of subdivision 3 of section 2825 of the
    52  public health law, as added by section 8 of part A of chapter 60 of  the
    53  laws of 2014, is amended to read as follows:
    54    The  commissioner  and the president of the authority shall enter into
    55  an agreement, subject to approval by the  director  of  the  budget  and
    56  subject  to  section  sixteen hundred eighty-r of the public authorities

        S. 4610--A                         133                        A. 6721--A
 
     1  law, as added by a chapter of the laws of two thousand fourteen, for the
     2  purposes of awarding, distributing, and  administering  the  funds  made
     3  available  pursuant  to  this  section. To the extent practicable, funds
     4  shall  be  awarded regionally in proportion to the applications received
     5  from the request for application issued by  or  before  May  first,  two
     6  thousand  fifteen.  Projects awarded under sections twenty-eight hundred
     7  twenty-five-a and twenty-eight hundred  twenty-five-b  of  this  article
     8  shall  not  be  eligible  for grants or awards made available under this
     9  section.
    10    § 5. The public health law is amended by adding a new  section  2815-a
    11  to read as follows:
    12    §  2815-a.  Community  health  care revolving capital fund. 1.   Defi-
    13  nitions. As used in this section, the following words and phrases  shall
    14  have  the  following  meanings  unless  a  different  meaning is plainly
    15  required by the context:
    16    a. "Administrator" shall mean a not for profit  Community  Development
    17  Financial Institution CDFI that is certified by the U.S. Treasury commu-
    18  nity  development  financial  fund, has experience financing projects in
    19  the New York state healthcare sector and otherwise  meets  the  require-
    20  ments of this section.
    21    b.  "Dormitory  authority"  or  "authority"  shall  mean the dormitory
    22  authority of the state of New York created  by  title  four  of  article
    23  eight  of  the public authorities law which has succeeded to the powers,
    24  functions and duties of  the  medical  care  facilities  finance  agency
    25  pursuant  to  chapter eighty-three of the laws of nineteen hundred nine-
    26  ty-five.
    27    c. "Participating borrower" shall mean a community-based  health  care
    28  provider,  which  for  the purposes of this section, shall be defined as
    29  diagnostic and treatment center licensed or granted an operating certif-
    30  icate under article twenty-eight of this chapter, a mental health clinic
    31  licensed or granted an operating certificate under article thirty-one of
    32  the mental health law; or an alcohol and substance abuse treatment clin-
    33  ic licensed or granted an operating certificate under article thirty-two
    34  of the mental hygiene law, each organized under the laws of this state.
    35    d. "Revolving capital fund" shall mean community health care revolving
    36  capital fund authorized to be established by the dormitory authority and
    37  administered pursuant to this section.
    38    2. Revolving capital  fund.  The  dormitory  authority  shall,  within
    39  amounts  appropriated,  establish  the  community  health care revolving
    40  capital fund.  Monies in the revolving capital fund  shall  be  utilized
    41  for the purpose of making loans to qualifying participating borrowers to
    42  improve  access  to  affordable  capital financing to expand and improve
    43  capacity to provide health care in the State. Funds shall be transferred
    44  by the commissioner to  the  dormitory  authority  for  deposit  in  the
    45  revolving  capital  fund  in  an  amount as authorized by appropriation.
    46  Monies in the fund shall be: (a) held by the authority pursuant to  this
    47  section  as  custodian  pursuant  to  an agreement with the commissioner
    48  until transferred to the administrator pursuant to this section, and (b)
    49  invested by the authority in accordance with the  investment  guidelines
    50  of  the  authority  during  said custodial period. All investment income
    51  shall be credited to, and shall be deposited in, the  revolving  capital
    52  fund.
    53    3.  Administration agreement. The commissioner and the authority shall
    54  enter into an agreement, subject to the approval of the director of  the
    55  budget,  for  the  purpose  of  administering the funds in the revolving
    56  capital fund through an administrator. A copy of such agreement, and any

        S. 4610--A                         134                        A. 6721--A
 
     1  amendments thereto, shall be provided to the chair of the senate finance
     2  committee, the director of the division of budget, and the chair of  the
     3  assembly  ways and means committee. The agreement shall specify that the
     4  administrator shall administer the community health care revolving capi-
     5  tal  fund in a manner that will benefit the public health by encouraging
     6  improvements in the community health care delivery system in the  state,
     7  in  compliance  with  all  applicable laws, rules, regulations and other
     8  requirements.
     9    4. Agreement with the administrator. The dormitory authority shall, in
    10  consultation with the commissioner, enter into  an  agreement  with  the
    11  administrator.  Such  agreement  shall provide for the administration of
    12  the  revolving  capital  fund  administrator,  in  accordance  with  the
    13  requirements  of  this section, the commissioner and dormitory authority
    14  and all applicable laws, rules, regulations and other requirements. Upon
    15  the effective date of the agreement, custody of, and responsibility for,
    16  the revolving capital fund  shall  be  transferred  from  the  dormitory
    17  authority  to  the  administrator,  subject  to  the requirements of the
    18  agreement. Such agreement shall include, but  not  be  limited  to,  the
    19  following provisions:
    20    a.  That  the  administrator  shall  be  responsible  for the receipt,
    21  management and expenditure of monies held in the revolving capital fund;
    22    b. That the administrator shall maintain books and records  pertaining
    23  to  all  monies  received and disbursed pursuant to this section and the
    24  agreement;
    25    c. That monies in such revolving capital fund shall  be  utilized  for
    26  the  purpose  of  making loans to qualifying participating borrowers, to
    27  provide participating borrowers with improved access to affordable capi-
    28  tal to expand and improve preventive or primary care capacity;
    29    d. That participating borrowers shall be chosen by  the  administrator
    30  through an application process approved by the authority and the commis-
    31  sioner;
    32    e.  That  eligible  uses of funds so loaned to participating borrowers
    33  shall include but not be limited to: (i) eligible costs as described  in
    34  paragraph   (f)  of  this  subdivision,  attributable  to  the  proposed
    35  construction, reconstruction, renovation, rehabilitation,  refurbishing,
    36  expansion,  upgrading and equipping of a participating borrower's commu-
    37  nity-based health care facility; (ii) reserves  for  credit  enhancement
    38  including loan guarantees; (iii) loan loss and debt service reserves and
    39  subordinated  loans;  and  (iv)  facility financing, including loans for
    40  predevelopment, acquisition and construction,  permanent  financing  and
    41  bridge loans;
    42    f.  That  eligible  costs under this section shall include, but not be
    43  limited to, all hard construction costs and associated professional  and
    44  other  costs, furniture, fixtures and equipment, including health infor-
    45  mation technology, acquisition, predevelopment  due  diligence,  initial
    46  operating expenses and working capital;
    47    g.  That  the  administrator  administering the revolving capital fund
    48  shall report quarterly on the transactions in the revolving capital fund
    49  in a form and manner specified by the authority in consultation with the
    50  commissioner, including but not limited to: receipts or deposits to  the
    51  fund,  disbursements,  loans  or  credit enhancement made from the fund,
    52  investment income, and the balance on hand as of the end  of  the  month
    53  for each such quarter;
    54    h. That the administrator shall be required to invest monies on depos-
    55  it  in  the  fund  in  accordance with investment guidelines meeting the
    56  requirements of the department and dormitory authority, and all  invest-

        S. 4610--A                         135                        A. 6721--A
 
     1  ment  income shall be credited to, and any repayment of loans as herein-
     2  after provided shall be deposited in, the revolving  capital  fund,  and
     3  spent therefrom only for the purposes set forth in this section;
     4    i.  That  only the reasonable expenses of the administrator, as deter-
     5  mined by the commissioner and president of the  authority,  incurred  in
     6  the  establishment  and  administration  of  the  revolving capital loan
     7  program (including the retention of professionals  and  consultants,  if
     8  any) may be paid or reimbursed from the revolving capital fund;
     9    j.  That revolving capital fund monies shall be held in trust and used
    10  for the benefit of eligible community-based health care facility capital
    11  projects; and
    12    k. Any other term or condition as  determined  by  the  authority,  in
    13  consultation with the commissioner.
    14    5.  Loan documentation. Loans from the revolving capital fund shall be
    15  made pursuant to a written loan agreement between the administrator  and
    16  the  participating  borrower,  specifying  the  terms  thereof including
    17  repayment terms. The loan agreement shall be in such form and content as
    18  shall be acceptable to the commissioner and dormitory authority, and may
    19  include such other any further written documentation  and/or  agreements
    20  as  shall  be required in the judgment of the commissioner and dormitory
    21  authority, including but not limited to all required filings  under  the
    22  Uniform Commercial Code.
    23    §  6. Section 2826 of the public health law is amended by adding a new
    24  subdivision (g) to read as follows:
    25    (g) Notwithstanding  subdivision  (a)  of  this  section,  and  within
    26  amounts  appropriated  for  such  purposes  as described herein, for the
    27  period of April first, two thousand fifteen through March  thirty-first,
    28  two  thousand sixteen, the commissioner may award a temporary adjustment
    29  to the non-capital components of rates, or make temporary lump-sum Medi-
    30  caid payments to eligible general hospitals in severe financial distress
    31  to enable such facilities to  maintain  operations  and  vital  services
    32  while such facilities establish long term solutions to achieve sustaina-
    33  ble health services.
    34    (i) Eligible general hospitals shall include:
    35    (A)  a  public hospital, which for purposes of this subdivision, shall
    36  mean a general hospital operated by a county or municipality, but  shall
    37  exclude any such hospital operated by a public benefit corporation;
    38    (B) a federally designated critical access hospital;
    39    (C) a federally designated sole community hospital; or
    40    (D)  a  general  hospital  that  is  a  safety net hospital, which for
    41  purposes of this subdivision shall mean:
    42    (1) such hospital  has  at  least  thirty  percent  of  its  inpatient
    43  discharges  made up of Medicaid eligible individuals, uninsured individ-
    44  uals or Medicaid dually eligible individuals and with at  least  thirty-
    45  five percent of its outpatient visits made up of Medicaid eligible indi-
    46  viduals,  uninsured individuals or Medicaid dually-eligible individuals;
    47  or
    48    (2) such hospital serves at least thirty percent of the residents of a
    49  county or a multi-county area who  are  Medicaid  eligible  individuals,
    50  uninsured individuals or Medicaid dually-eligible individuals.
    51    (ii)  Eligible  applicants  must  demonstrate that without such award,
    52  they will be in severe financial distress  through  March  thirty-first,
    53  two thousand sixteen, as evidenced by:
    54    (A)  certification that such applicant has less than fifteen days cash
    55  and equivalents;

        S. 4610--A                         136                        A. 6721--A
 
     1    (B) such applicant has no assets that  can  be  monetized  other  than
     2  those vital to operations; and
     3    (C)  such applicant has exhausted all efforts to obtain resources from
     4  corporate parents and affiliated entities to sustain operations.
     5    (iii) Awards under this subdivision shall be made upon application  to
     6  the department.
     7    (A)  Applications  under  this  subdivision shall include a multi-year
     8  transformation plan that is aligned  with  the  delivery  system  reform
     9  incentive  payment  ("DSRIP")  program  goals  and objectives. Such plan
    10  shall be approved by the department and shall demonstrate a path towards
    11  long term sustainability and improved patient care.
    12    (B) The department may authorize initial award  payments  to  eligible
    13  applicants  based  solely on the criteria pursuant to paragraphs (i) and
    14  (ii) of this subdivision.
    15    (C) Notwithstanding subparagraph (B) of this paragraph, the department
    16  may suspend or repeal an award if an eligible applicant fails to  submit
    17  a  multi-year  transformation  plan pursuant to subparagraph (A) of this
    18  paragraph that is acceptable to the department  by  no  later  than  the
    19  thirtieth day of September two thousand fifteen.
    20    (D) Applicants under this subdivision shall detail the extent to which
    21  the  affected  community  has  been  engaged  and consulted on potential
    22  projects of such application, as well as any  outreach  to  stakeholders
    23  and health plans.
    24    (E)  The  department shall review all applications under this subdivi-
    25  sion, and a determine:
    26    (1) applicant eligibility;
    27    (2) each applicant's projected financial status;
    28    (3) each applicant's  proposed  use  of  funds  to  maintain  critical
    29  services needed by its community; and
    30    (4) the anticipated impact of the loss of such services.
    31    (F)  After  review  of  all applications under this subdivision, and a
    32  determination of the aggregate amount of requested funds, the department
    33  shall make awards to eligible applicants; provided, however,  that  such
    34  awards  may  be in an amount lower than such requested funding, on a per
    35  applicant or aggregate basis.
    36    (iv) Awards under this subdivision may not be used for:
    37    (A) capital expenditures, including, but not limited to: construction,
    38  renovation and acquisition of capital equipment, including major medical
    39  equipment;
    40    (B) consultant fees;
    41    (C) retirement of long term debt; or
    42    (D) bankruptcy-related costs.
    43    (v) Payments made to awardees pursuant to this  subdivision  shall  be
    44  made  on a monthly basis. Such payments will be based on the applicant's
    45  actual monthly financial performance during such period and the  reason-
    46  able  cash  amount  necessary  to  sustain  operations for the following
    47  month. The applicant's monthly financial performance shall  be  measured
    48  by  such applicant's monthly financial and activity reports, which shall
    49  include, but not be limited to, actual  revenue  and  expenses  for  the
    50  prior  month,  projected  cash need for the current month, and projected
    51  cash need for the following month.
    52    (vi) The department shall provide a report on a quarterly basis to the
    53  chairs of the senate finance, assembly ways and means, senate health and
    54  assembly health committees. Such reports shall  be  submitted  no  later
    55  than  sixty  days  after the close of the quarter, and shall include for
    56  each award, the name of the applicant, the amount of the award, payments

        S. 4610--A                         137                        A. 6721--A
 
     1  to date, and a description of the status of the  multi-year  transforma-
     2  tion plan pursuant to paragraph (iii) of this subdivision.
     3    § 7. This act shall take effect immediately.
     4    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
     5  sion,  section  or  part  of  this act shall be adjudged by any court of
     6  competent jurisdiction to be invalid, such judgment  shall  not  affect,
     7  impair,  or  invalidate  the remainder thereof, but shall be confined in
     8  its operation to the clause, sentence, paragraph,  subdivision,  section
     9  or part thereof directly involved in the controversy in which such judg-
    10  ment shall have been rendered. It is hereby declared to be the intent of
    11  the  legislature  that  this  act  would  have been enacted even if such
    12  invalid provisions had not been included herein.
    13    § 3. This act shall take effect immediately  provided,  however,  that
    14  the  applicable effective date of Parts A through J of this act shall be
    15  as specifically set forth in the last section of such Parts.
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