senate Bill S6173

Protects homeowners by insurance companies against property damage from oil spills and provides tax credits for those who replace underground tanks with above ground

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

Protects homeowners by requiring insurance companies insure against property damage from oil spills from underground oil tanks and provides tax credits for those who replace underground tanks with above ground.

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Bill Details

See Assembly Version of this Bill:
A8576
Versions:
S6173
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd §§615 & 606, Tax L; amd §190, Nav L

Sponsor Memo

BILL NUMBER:S6173

TITLE OF BILL: An act to amend the tax law, in relation to modifica-
tions increasing federalized itemized deductions for removing under-
ground home heating oil storage tanks; and to amend the navigation law,
in relation to claims against insurers for oil spills from underground
heating oil tanks and to amend the tax law, in relation to establishing
a residential fund oil storage tank credit and providing for the repeal
of certain provisions upon expiration thereof

PURPOSE:

To require homeowners' insurance policies in New York State to cover
damage and cost of clean-up for leakage from the insured's underground
heating oil tank; and to create a "residential fuel oil storage tank
credit", to allow for a tax credit, up to $500, for the removal cost of
an existing unprotected, buried tank and replacement with a modern one,
meeting certain standards.

SUMMARY OF PROVISIONS:

Section 1 amends subsection (d) of section 615 of the tax law by adding
a new paragraph 5, that allows for the deduction of up to $1000 from
income taxes for the owner of a 1, 2, or 3 family home upon the replace-
ment of a buried tank with a new tank, meeting certain standards, or an
alternate heating source.

Section 2 amends Section 190 of the navigation law, adding sections (b),
(c), (d) and (e); to require homeowners' insurance coverage for oil
spills or leakage from underground heating oil tanks and describes
provisions and requirements therefore.

Section 3 reletters subsections (yy) and (zz) of section 606 to (yyy)
and (zzz) of the tax law and adds (xx) to create a residential fuel tax
credit , allowing for a credit of up to $500 for removal and replacement
of an unprotected underground fuel oil tank.

Section 4 states the effective date as the first day of January after it
has become law.

JUSTIFICATION:

Leaking underground home heating fuel tanks are both a health and envi-
ronmental threat, but also are very expensive to replace. Due to the
legal classification of these tanks under the navigation law, damaged
caused by leakage is largely exempted for coverage in homeowners' insur-
ance policies. This bill remedies the lack of insurance coverage, and
provides financial assistance and incentives to homeowners to replace
these tanks.

LEGISLATIVE HISTORY:

2014: (pre-filed) New bill.

FISCAL IMPLICATIONS:

None anticipated in the current fiscal year.

EFFECTIVE DATE:

This act shall take effect the first day of January following it becom-
ing law.

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

                                  6173

                            I N  S E N A T E

                               (PREFILED)

                             January 8, 2014
                               ___________

Introduced  by  Sen. TKACZYK -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in  relation  to  modifications  increasing
  federalized  itemized deductions for removing underground home heating
  oil storage tanks; and to amend the navigation  law,  in  relation  to
  claims  against  insurers  for oil spills from underground heating oil
  tanks and to amend the tax law, in relation to establishing a residen-
  tial fund oil storage tank credit and  providing  for  the  repeal  of
  certain provisions upon expiration thereof

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

  Section 1. Subsection (d) of section 615 of the tax law is amended  by
adding a new paragraph 5 to read as follows:
  (5) AN AMOUNT, NOT TO EXCEED FIFTY PERCENT OF THE AMOUNT EXPENDED BY A
TAXPAYER  WHO  IS  THE  OWNER  OF  A  ONE,  TWO OR THREE FAMILY HOME WHO
PROMOTES ENVIRONMENTAL QUALITY THROUGH THE  REMOVAL  OF  AN  UNDERGROUND
HOME  HEATING  OIL STORAGE TANK AND THE REPLACEMENT OF SUCH TANK WITH AN
ABOVE GROUND HOME HEATING OIL STORAGE TANK OR  ANOTHER  SOURCE  OF  HOME
HEATING.  THIS  DEDUCTION  IS LIMITED TO ONE THOUSAND DOLLARS IN ANY ONE
YEAR.
  S 2. Section 190 of the navigation law, as added by chapter 845 of the
laws of 1977, is amended to read as follows:
  S 190. Claims against insurers. (A) Any claims for  costs  of  cleanup
and  removal,  civil penalties or damages by the state and any claim for
damages by any injured person, may be brought directly against the bond,
the insurer, or any other person providing evidence of financial respon-
sibility.
  (B) ALL HOMEOWNERS' POLICIES OF INSURANCE IN THIS  STATE  WHICH  SHALL
INSURE AGAINST DAMAGE TO PROPERTY SHALL CLEARLY PROVIDE THAT THE ATTEND-
ANT  COSTS  OF  REMEDIATING  THE CONSEQUENCES OF AN OIL SPILL OR LEAKAGE
FROM THE INSURED'S UNDERGROUND HEATING OIL TANK SHALL CONSTITUTE PROPER-
TY DAMAGE AND SHALL BE INSURABLE  WITHIN  THE  MEANING  OF  THE  GENERAL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13108-01-3

S. 6173                             2

LIABILITY  PORTIONS  OF  SUCH  INSURANCE  POLICY AND THE RISK OF DAMAGES
CAUSED BY SUCH OIL SPILLS MAY NOT BE AN EXCLUSION  IN  ANY  SUCH  POLICY
ISSUED IN THE STATE EXCEPT IF IT IS A NAMED PERILS ONLY POLICY.
  (C)  ALL  HOMEOWNERS'  POLICIES OF INSURANCE IN THIS STATE WHICH SHALL
INSURE AGAINST DAMAGE TO PROPERTY SHALL CLEARLY PROVIDE THAT THE ATTEND-
ANT COSTS OF REMEDIATING THE CONSEQUENCES OF AN  OIL  SPILL  OR  LEAKAGE
FROM  THE  INSURED'S  HEATING OIL TANK WHICH IS NOT UNDERGROUND WHEN THE
DAMAGE IS NOT THE RESULT OF THE FAILURE OF THE HOMEOWNER  TO  REASONABLY
INSPECT  OR  TO  HIRE  SOMEONE TO REASONABLY INSPECT HIS OR HER OIL TANK
WHEN THE OPPORTUNITY TO DO SO EXISTS, SHALL CONSTITUTE  PROPERTY  DAMAGE
AND  SHALL  BE  INSURABLE  WITHIN  THE  MEANING OF THE GENERAL LIABILITY
PORTIONS OF SUCH INSURANCE POLICY AND THE RISK OF DAMAGES CAUSED BY SUCH
OIL SPILLS MAY NOT BE AN EXCLUSION IN ANY  SUCH  POLICY  ISSUED  IN  THE
STATE EXCEPT IF IT IS A NAMED PERILS ONLY POLICY.
  (D)  NON-COMPLIANCE  WITH THE PROVISIONS OF THIS SUBDIVISION REQUIRING
THE REASONABLE INSPECTION OF A RESIDENTIAL OIL TANK SHALL NOT BE  ADMIS-
SIBLE AS EVIDENCE IN ANY CIVIL ACTION IN A COURT OF LAW IN REGARD TO THE
ISSUE  OF LIABILITY BUT MAY BE INTRODUCED INTO EVIDENCE IN MITIGATION OF
DAMAGES PROVIDED THE PARTY INTRODUCING SAID EVIDENCE  HAS  PLEADED  SUCH
NON-COMPLIANCE AS AN AFFIRMATIVE DEFENSE.
  (E)  NOTHING  IN  THIS  SUBDIVISION  SHALL  BE  CONSTRUED TO LIMIT ANY
PRE-EXISTING RIGHT, WHETHER ACTUAL OR IMPLIED, IN WHICH THE INSURED  MAY
HAVE  HAD  COMPENSATION  FROM THE INSURER FOR DAMAGE TO PROPERTY FROM AN
OIL SPILL OR LEAKAGE FROM  AN  UNDERGROUND  HEATING  OIL  TANK  AND  THE
ATTENDANT  COSTS  OF  REMEDIATING  THE CONSEQUENCES OF SUCH OIL SPILL OR
LEAKAGE.
  S 3.  Subsections (yy) and (zz) of section 606  of  the  tax  law,  as
relettered  by section 5 of part H of chapter 1 of the laws of 2003, are
relettered subsections (yyy) and (zzz) and  a  new  subsection  (xx)  is
added to read as follows:
  (XX) RESIDENTIAL FUEL OIL STORAGE TANK CREDIT. (1) A TAXPAYER SHALL BE
ALLOWED  A  CREDIT  AGAINST THE TAX IMPOSED BY THIS ARTICLE IN AN AMOUNT
NOT TO EXCEED FIVE HUNDRED DOLLARS,  FOR  THE  REMOVAL  OF  AN  EXISTING
UNPROTECTED BURIED FUEL OIL TANK AND THE INSTALLATION OF A FIBERGLASS OR
FIBERGLASS  LINED  BURIED  HEATING  FUEL  OIL  STORAGE TANK, OR AN ABOVE
GROUND OR INTERIOR TANK, USED TO PROVIDE HEATING FUEL FOR A SINGLE FAMI-
LY HOME, WHICH MEETS THE REQUIREMENTS OF ARTICLE TWELVE OF  THE  NAVIGA-
TION LAW RELATING TO THE CONTAINMENT OF PETROLEUM.
  (2) THE HOMEOWNER CREDIT DESCRIBED IN PARAGRAPH ONE OF THIS SUBSECTION
MAY ONLY BE TAKEN ONCE AND SHALL BE ALLOWED ONLY FOR A RESIDENT'S PRIMA-
RY DOMICILE.
  S  4. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become  a  law;  provided,  however,
that  sections  two  and  three  of  this act shall expire and be deemed
repealed two years after such effective date.

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