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

                                  6837

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             March 13, 2009
                               ___________

Introduced  by  M.  of  A.  SCOZZAFAVA  -- read once and referred to the
  Committee on Transportation

AN ACT to amend the transportation law and the tax law, in  relation  to
  establishing the New Century railroad investment program and providing
  for  certain  tax  credits  for  rail  carriers; 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.  The transportation law is amended by adding a new article
18-A to read as follows:
                              ARTICLE 18-A
                 NEW CENTURY RAILROAD INVESTMENT PROGRAM
SECTION 435. LEGISLATIVE INTENT.
        436. PROGRAM OBJECTIVES.
        437. ELIGIBILITY.
        438. RAILROAD CAPITAL FACILITY.
        439. JOINT APPLICATIONS.
  S 435. LEGISLATIVE INTENT. THE CONTINUATION  AND  IMPROVEMENT  OF  THE
APPROPRIATE LEVEL OF RAIL FREIGHT AND PASSENGER SERVICE AND THE ENHANCE-
MENT OF THE STATE'S RAILROAD INFRASTRUCTURE ARE A NECESSARY COMPONENT IN
ESTABLISHING  AND MAINTAINING THE ECONOMIC VITALITY OF THE STATE AND ITS
COMMUNITIES. THE PURCHASE AND DIVISION OF THE  CONRAIL  SYSTEM  HAS  THE
POTENTIAL  TO INVIGORATE COMPETITION AMONG RAIL CARRIERS IN NEW YORK AND
ESTABLISH THE STATE AS AN INCREASINGLY IMPORTANT CROSSROAD  FOR  FREIGHT
ON  BOTH  THE EAST-WEST AND NORTH-SOUTH CORRIDORS.  IN ORDER TO MEET THE
ANTICIPATED LEVEL OF RAIL  FREIGHT  SERVICE  IN  THE  POST-CONRAIL  ERA,
MODIFICATIONS  AND  IMPROVEMENTS TO THE STATE'S RAIL INFRASTRUCTURE WILL
BE NECESSARY. THE NEW CENTURY RAILROAD INVESTMENT PROGRAM  WILL  PROVIDE
THE  STATE'S RAIL CARRIERS WITH A TIMELY PARTNERSHIP THAT WILL STIMULATE
INVESTMENT BY THE RAIL CARRIERS INTO THE NEXT CENTURY. THIS PROGRAM WILL
PERMIT THE RAILROAD COMPANIES TO IMPROVE THE STATE'S RAIL INFRASTRUCTURE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08520-01-9
              

A. 6837                             2

IN A MANNER THAT WILL ENHANCE THEIR ABILITY TO COMPETE FOR BUSINESS.  IN
TURN,  THIS INVESTMENT WILL PROVIDE THE STATE WITH NEW OPPORTUNITIES FOR
ECONOMIC  DEVELOPMENT  AND  WILL  ENHANCE  THE  INCREASINGLY   IMPORTANT
RELATIONSHIPS BETWEEN THE VARIOUS MODES OF TRANSPORTATION.
  S  436. PROGRAM OBJECTIVES. THE OBJECTIVES OF THE NEW CENTURY RAILROAD
INVESTMENT PROGRAM SHALL BE:
  1. THE PRESERVATION,  IMPROVEMENT  AND  ENHANCEMENT  OF  THE  RAILROAD
INFRASTRUCTURE;
  2. THE IMPROVEMENT OF THE QUALITY AND QUANTITY OF RAILROAD FREIGHT AND
PASSENGER  SERVICE, INCLUDING THE DEVELOPMENT OF INTERMODAL CONNECTIONS;
AND
  3. THE FACILITATION OF INVESTMENT THAT WILL STIMULATE THE  COST-EFFEC-
TIVE  MOVEMENT OF FREIGHT AND PASSENGERS THROUGHOUT THE STATE, INCLUDING
THOSE AREAS THAT WERE PREVIOUSLY UNDERSERVED.
  S 437. ELIGIBILITY. 1. A RAILROAD COMPANY, AS DEFINED IN  SECTION  TWO
OF THIS CHAPTER, SHALL BE ELIGIBLE FOR A TAX CREDIT AGAINST THE PETROLE-
UM  BASED TAX IMPOSED PURSUANT TO SECTION THREE HUNDRED ONE-A OF THE TAX
LAW FOR QUALIFYING PROJECTS CERTIFIED BY THE  COMMISSIONER  PURSUANT  TO
THE  REQUIREMENTS  SET  FORTH IN THIS SECTION. AN INVESTMENT MADE IN NEW
YORK SHALL BE DEEMED A QUALIFYING PROJECT IF IT PROVIDES FOR THE  ACQUI-
SITION,  CONSTRUCTION,  RECONSTRUCTION,  ESTABLISHMENT,  IMPROVEMENT  OR
REHABILITATION OF A RAILROAD CAPITAL FACILITY. STANDARD  MAINTENANCE  OF
RAILROAD  FACILITIES  WILL  NOT BE CONSIDERED A QUALIFYING PROJECT UNDER
THIS PROGRAM.
  2. A RAILROAD MAY SUBMIT AN APPLICATION FOR CERTIFICATION OF A  QUALI-
FYING PROJECT UNDER THIS PROGRAM IN SUCH FORM AND CONTAINING SUCH INFOR-
MATION  AS THE COMMISSIONER MAY REQUIRE. IF THE PROJECT MEETS THE STATU-
TORY REQUIREMENTS SET FORTH IN  THIS  SECTION,  THE  COMMISSIONER  SHALL
CERTIFY  TO  ITS  ELIGIBILITY  FOR  THE TAX CREDIT IN A MANNER THAT WILL
FACILITATE GRANTING OF THE CREDIT OR REIMBURSEMENT SET FORTH IN  SECTION
THREE HUNDRED ONE-N OF THE TAX LAW. IF THE COMMISSIONER REJECTS ANY SUCH
APPLICATION  HE  OR  SHE SHALL STATE THE REASONS THEREFOR IN WRITING AND
MAY MAKE RECOMMENDATIONS FOR MODIFICATION.
  S 438.  RAILROAD CAPITAL FACILITY. FOR THE PURPOSES OF THIS ARTICLE, A
RAILROAD CAPITAL FACILITY SHALL MEAN AND INCLUDE RAILROAD RIGHTS OF WAY,
AS WELL AS TRACKAGE,  RAILS,  BRIDGES,  CLEARANCES,  SIGNALS,  STATIONS,
TERMINALS,  STORAGE  YARDS, REPAIR AND MAINTENANCE SHOPS, YARDS, OFFICES
AND REAL ESTATE USED OR HELD FOR OR INCIDENTAL TO THE  OPERATION,  REHA-
BILITATION  OR  IMPROVEMENT  OF  ANY RAILROAD OPERATING RAIL FREIGHT AND
RAIL PASSENGER TRANSPORTATION SERVICES.
  S 439. JOINT APPLICATIONS. TWO OR MORE RAILROAD COMPANIES  MAY  SUBMIT
JOINT  APPLICATIONS TO THE COMMISSIONER FOR QUALIFYING PROJECTS IN WHICH
MORE  THAN  ONE  RAILROAD  PLANS  TO  PARTICIPATE.  THE  TAX  CREDIT  OR
REIMBURSEMENT  ALLOWED  BY  SECTION  THREE  HUNDRED ONE-N OF THE TAX LAW
PURSUANT TO THIS PROGRAM SHALL BE  BASED  UPON  THE  AMOUNT  OF  CAPITAL
INVESTED BY EACH RAILROAD IN ANY SUCH PROJECT.
  S  2.  The tax law is amended by adding a new section 301-n to read as
follows:
  S 301-N. CREDIT FOR CAPITAL  IMPROVEMENTS  BY  RAILROADS.  A  RAILROAD
COMPANY,  AS  DEFINED IN SECTION TWO OF THE TRANSPORTATION LAW, SHALL BE
ENTITLED TO A CREDIT AGAINST THAT PORTION OF THE TAX IMPOSED BY  SECTION
THREE  HUNDRED  ONE-A  OF  THIS  ARTICLE  WHICH IS DEPOSITED PURSUANT TO
SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER, OR A REIMBURSEMENT OF
SUCH TAX, UP TO THE AMOUNT OF CAPITAL INVESTMENT MADE  IN  A  QUALIFYING
PROJECT AS DEFINED IN SECTION FOUR HUNDRED THIRTY-SEVEN OF THE TRANSPOR-
TATION LAW.

A. 6837                             3

  S  3.  Paragraph 4 of subdivision (e) of section 301-a of the tax law,
as added by chapter 309 of the laws of  1996,  is  amended  to  read  as
follows:
  (4)  Notwithstanding  any  other provision of this article, commencing
January first, nineteen hundred ninety-seven, the per gallon  rate  with
respect  to "railroad diesel" shall be the adjusted motor fuel and auto-
motive-type diesel motor fuel rate under paragraphs one through three of
this subdivision for the period commencing such January first,  nineteen
hundred  ninety-seven,  minus  one  and  three  tenths cents per gallon.
Commencing on the first day of January each  year  thereafter,  the  per
gallon  rate  with  respect to "railroad diesel" shall be [determined by
taking the then motor fuel and automotive-type diesel  motor  fuel  rate
under  paragraphs  one through three of this subdivision which commences
on such first day of January and subtracting one and three  tenths]  ONE
AND FORTY-SIX HUNDREDTHS cents per gallon.
  S  4.  Subdivision  (b)  of  section 312 of the tax law, as amended by
section 8 of part EE of chapter 63 of the laws of 2000,  is  amended  to
read as follows:
  (b)  Of  all of the taxes collected or received by the commissioner on
or before March thirty-first,  nineteen  hundred  ninety-one  under  the
taxes imposed by sections three hundred one-a and three hundred one-e of
this  article,  and all interest and penalties relating thereto, eighty-
seven and five-hundredths percent of such collections shall be deposited
and disposed of pursuant to the provisions of section one hundred seven-
ty-one-a of this chapter and the balance thereof shall be  deposited  in
the  mass  transportation operating assistance fund to the credit of the
metropolitan mass transportation operating assistance  account  and  the
public  transportation  systems  operating assistance account thereof in
the manner provided by subdivision eleven of section one hundred  eight-
y-two-a  of this chapter. Of all taxes, interest and penalties collected
or received after March thirty-first, nineteen hundred  ninety-one,  and
before  April  first,  nineteen  hundred  ninety-three,  from  the taxes
imposed by sections three hundred one-a and three hundred one-e of  this
article,  initially  thirty-five percent shall be deposited and disposed
of pursuant to such section one hundred seventy-one-a. The balance ther-
eof shall then be disposed of as follows: seventy-two  and  seven-tenths
percent  shall be deposited and disposed of pursuant to such section one
hundred seventy-one-a and twenty-seven and three-tenths percent shall be
deposited in such  mass  transportation  operating  assistance  fund  as
prescribed  in  the aforestated manner. Except as otherwise provided, of
all taxes, interest and penalties  collected  or  received  after  March
thirty-first,  nineteen  hundred  ninety-three,  and before April first,
nineteen hundred ninety-four, from the taxes imposed by  sections  three
hundred  one-a  and  three  hundred one-e of this article, (i) initially
fifty-four percent shall be deposited, as prescribed by subdivision  (d)
of  section  three hundred one-j of this [chapter] ARTICLE, (ii) twenty-
eight and three-tenths percent shall be deposited and disposed of pursu-
ant to such section one hundred seventy-one-a of  this  chapter  in  the
general  fund  and  (iii)  seventeen  and  seven-tenths percent shall be
deposited in such  mass  transportation  operating  assistance  fund  as
prescribed  in the aforestated manner. Provided, however, that, prior to
such deposit, from the amounts so collected or received during the peri-
od commencing on January first, nineteen hundred ninety-four and  ending
on  March thirty-first, nineteen hundred ninety-four, an amount equal to
the portion  of  the  taxes,  interest  and  penalties  so  received  or
collected  resulting  from  the  amendments  made by sections forty-two,

A. 6837                             4

forty-three and forty-four of chapter fifty-seven of the laws  of  nine-
teen hundred ninety-three shall be deposited and disposed of pursuant to
the  provisions  of subdivision one of section one hundred seventy-one-a
of  this  chapter.  Except as otherwise provided, of all taxes, interest
and penalties collected or received on or after  April  first,  nineteen
hundred  ninety-four,  from  the taxes imposed by sections three hundred
one-a and three hundred one-e of this article, (i) initially  fifty-four
percent  shall be deposited, as prescribed by subdivision (d) of section
three hundred one-j of this article, (ii) twenty-eight and  three-tenths
percent  shall be deposited and disposed of pursuant to such section one
hundred seventy-one-a of this chapter in the general fund,  (iii)  seven
and  nine  hundred  sixty-five thousandths percent shall be deposited in
such mass transportation operating assistance fund as prescribed in  the
aforestated  manner  and  (iv)  nine and seven hundred thirty-five thou-
sandths percent shall be deposited in  the  revenue  accumulation  fund.
Except  as  otherwise  provided,  of  all  taxes, interest and penalties
collected or received on or  after  September  first,  nineteen  hundred
ninety-four  and  before  September first, nineteen hundred ninety-five,
from the taxes imposed by sections three hundred one-a and three hundred
one-e of this article, (i) initially fifty-nine percent shall be  depos-
ited, as prescribed by subdivision (d) of section three hundred one-j of
this article, (ii) twenty-two and four-tenths percent shall be deposited
and  disposed  of  pursuant to such section one hundred seventy-one-a of
this chapter in the general fund, (iii) eight and three hundred  seventy
thousandths percent shall be deposited in such mass transportation oper-
ating  assistance  fund as prescribed in the aforestated manner and (iv)
ten and two hundred thirty thousandths percent shall be deposited in the
revenue accumulation fund. Except as otherwise provided, of  all  taxes,
interest  and  penalties,  collected  or  received on or after September
first, nineteen hundred ninety-five and  before  April  first,  nineteen
hundred  ninety-six  from  the  taxes  imposed by sections three hundred
one-a and three hundred one-e of this article, (i)  initially  sixty-two
and eight-tenths percent shall be deposited as prescribed by subdivision
(d)  of  section  three  hundred  one-j  of  this article, (ii) eighteen
percent shall be deposited and  disposed  of  pursuant  to  section  one
hundred  seventy-one-a  of this chapter in the general fund, (iii) eight
and six hundred forty thousandths percent shall  be  deposited  in  such
mass  transportation  operating  assistance  fund  as  prescribed in the
aforestated manner and (iv)  ten  and  five  hundred  sixty  thousandths
percent  shall  be deposited in the revenue accumulation fund. Except as
otherwise provided, of all taxes, interest and  penalties  collected  or
received  on  or  after  April  first,  nineteen hundred ninety-six, and
before January first,  nineteen  hundred  ninety-seven  from  the  taxes
imposed  by sections three hundred one-a and three hundred one-e of this
article, (i) initially sixty-three and  three-tenths  percent  shall  be
deposited,  as  prescribed  by  subdivision (d) of section three hundred
one-j of this article, (ii) seventeen and four-tenths percent  shall  be
deposited  and disposed of pursuant to such section one hundred seventy-
one-a of this chapter in the general fund and (iii) nineteen and  three-
tenths  percent shall be deposited in such mass transportation operating
assistance fund as prescribed in the  aforestated  manner.    Except  as
otherwise  provided,  of  all taxes, interest and penalties collected or
received on or after January first, nineteen  hundred  ninety-seven  and
before  January  first,  nineteen  hundred  ninety-eight  from the taxes
imposed by sections three hundred one-a and three hundred one-e of  this
article,  (i) initially sixty-six and two-tenths percent shall be depos-

A. 6837                             5

ited, as prescribed by subdivision (d) of section three hundred one-j of
this article, (ii) fourteen and one-half percent shall be deposited  and
disposed  of  pursuant to such section one hundred seventy-one-a of this
chapter  in the general fund and (iii) nineteen and three-tenths percent
shall be deposited in such mass transportation operating assistance fund
as prescribed in the aforestated manner.  Except as otherwise  provided,
of  all  taxes, interest and penalties collected or received on or after
January first, nineteen hundred ninety-eight  and  before  April  first,
nineteen  hundred  ninety-nine  from the taxes imposed by sections three
hundred one-a and three hundred one-e of  this  article,  (i)  initially
sixty-eight  and  one-tenth percent shall be deposited, as prescribed by
subdivision (d) of section three hundred one-j  of  this  article,  (ii)
twelve and four-tenths percent shall be deposited and disposed of pursu-
ant  to  such  section  one hundred seventy-one-a of this chapter in the
general fund and (iii) nineteen and one-half percent shall be  deposited
in  such  mass transportation operating assistance fund as prescribed in
the aforestated manner.   Except as otherwise provided,  of  all  taxes,
interest  and  penalties  collected or received on or after April first,
nineteen hundred ninety-nine, from the taxes imposed by  sections  three
hundred  one-a  and  three  hundred one-e of this article, (i) initially
sixty-nine and eight-tenths percent shall be deposited, as prescribed by
subdivision (d) of section three hundred one-j of this article, (ii) ten
and seven-tenths percent shall be deposited and disposed of pursuant  to
such  section  one  hundred seventy-one-a of this chapter in the general
fund and (iii) nineteen and one-half percent shall be deposited in  such
mass  transportation  operating  assistance  fund  as  prescribed in the
aforestated manner. Except as otherwise provided, of all taxes, interest
and penalties collected or received on or after April first,  two  thou-
sand  one,  from  the  taxes imposed by sections three hundred one-a and
three hundred one-e of this article, (i)  initially  eighty  and  three-
tenths  percent  shall be deposited, as prescribed by subdivision (d) of
section three hundred one-j  of  this  article  and  (ii)  nineteen  and
seven-tenths  percent  shall  be  deposited  in such mass transportation
operating assistance fund  as  prescribed  in  the  aforestated  manner,
EXCEPT  THAT FOR TAXES COLLECTED FOR RAILROAD DIESEL IMPOSED PURSUANT TO
SECTION THREE HUNDRED ONE-A OF THIS ARTICLE ONE HUNDRED PERCENT SHALL BE
DEPOSITED INTO SUCH FUND.
  Provided, further, that on or before  the  twenty-fifth  day  of  each
month  commencing  with October, nineteen hundred ninety and terminating
with the month of March, two thousand one, the comptroller shall  deduct
the  amount  of  six  hundred  twenty-five thousand dollars prior to any
deposit or disposition of the taxes, interest and penalties collected or
received pursuant to such sections three hundred one-a and three hundred
one-e and shall pay such amount to the state treasury to the  credit  of
the  general  fund. Provided, further that on or before the twenty-fifth
day of each month commencing with April, two  thousand  one,  the  comp-
troller  shall  deduct  the  amount  of six hundred twenty-five thousand
dollars prior to any deposit or disposition of the taxes, interest,  and
penalties  collected or received pursuant to such sections three hundred
one-a and three hundred one-e and shall deposit such amount in the dedi-
cated fund accounts pursuant to subdivision (d) of section three hundred
one-j of  this  article.  Provided,  further,  that  commencing  January
fifteenth,  nineteen  hundred ninety-one, and on or before the tenth day
of March and the fifteenth day of June and September of such  year,  the
commissioner shall, based on information supplied by taxpayers and other
appropriate  sources,  estimate the amount of the utility credit author-

A. 6837                             6

ized by section three hundred one-d  of  this  article  which  has  been
accrued  to  reduce tax liability under section one hundred eighty-six-a
of this chapter during the period covered by such estimate  and  certify
to  the  state  comptroller such estimated amount. The comptroller shall
forthwith, after receiving such certificate, deduct the amount  of  such
credit so certified by the commissioner prior to any deposit or disposi-
tion of the taxes, interest and penalties collected or received pursuant
to  such  sections three hundred one-a and three hundred one-e and shall
pay such amount so certified and deducted into the state treasury to the
credit of the general fund. As soon as practicable  after  April  first,
nineteen  hundred  ninety-one,  nineteen hundred ninety-two and nineteen
hundred ninety-three, but before June fifteenth of each such  year,  the
commissioner  shall determine the amount of the utility tax credit which
has been actually used to reduce tax liability under  such  section  one
hundred eighty-six-a and shall certify the difference between such actu-
al  amount  and the earlier estimated amount. Also, subsequently, during
the fiscal year when  the  commissioner  becomes  aware  of  changes  or
modifications  with  respect  to  actual  credit usage, the commissioner
shall, as soon as practicable, issue a certification setting  forth  the
amount  of  any required adjustment to the amount of actual credit usage
previously certified. After receiving the certificate of the commission-
er with respect to actual credit usage or modification of the same,  the
comptroller  shall forthwith adjust general fund receipts and the reven-
ues to be deposited or disposed of under this  article  to  reflect  the
difference  so certified by the commissioner. The commissioner shall not
be liable for any overestimate or underestimate of  the  amount  of  the
utility credit which has been accrued to reduce tax liability under such
section  one  hundred eighty-six-a. Nor shall the commissioner be liable
for any inaccuracy in any certificate with respect to the amount of such
credit actually used or any required adjustment with respect  to  actual
credit  usage,  but  the commissioner shall as soon as practicable after
discovery of any error adjust the next certification under this  section
to reflect any such error.
  On  or before July thirty-first, nineteen hundred ninety-two and on or
before July thirty-first, nineteen hundred ninety-three, the commission-
er shall conduct  the  following  reconciliation  with  respect  to  the
preceding  fiscal year: he shall multiply the total of all taxes, penal-
ties and interest, after refunds and reimbursements, which  are  derived
from  the  motor  fuel  component, the automotive-type diesel motor fuel
component and the aviation gasoline component  by  twenty  fifty-fifths;
the  total  of  all  taxes,  penalties  and  interest, after refunds and
reimbursements, which are derived  from  the  nonautomotive-type  diesel
motor  fuel component (excluding taxes, penalties and interest which are
derived from product with respect to which the credit  or  reimbursement
provided  by  section three hundred one-d is taken) by twenty-fiftieths;
and all taxes, penalties and interest, after refunds and reimbursements,
which are derived from the residual petroleum product component (exclud-
ing taxes, penalties and interest which are derived  from  product  with
respect  to  which the credit or reimbursement provided by section three
hundred one-d is taken) by twenty-fortieths. The products of the forego-
ing multiplications shall be added together and  the  resulting  sum  of
such  products shall be compared with the total of the amounts initially
distributed during such fiscal year  with  respect  to  such  components
(excluding receipts derived from product with respect to which the cred-
it or reimbursement provided by section three hundred one-d is taken and
excluding any amount which represents a reconciliation adjustment pursu-

A. 6837                             7

ant  to this paragraph) pursuant to section one hundred seventy-one-a of
this chapter which represented thirty-five percent of the  total,  after
refunds  and  reimbursements,  of  all  taxes,  penalties  and  interest
collected  or  received  during  such  fiscal  year under sections three
hundred one-a and three hundred one-e during the months of  such  fiscal
year with respect to such components. The commissioner shall then certi-
fy  the  amount  of  such  difference to the comptroller. If the amounts
initially distributed in such fiscal year are greater than  the  sum  of
such  products,  the comptroller shall withhold an amount equal to twen-
ty-seven and three-tenths percent of  such  difference  from  the  first
moneys  otherwise  payable to the general fund pursuant to this subdivi-
sion and shall pay such amount  to  the  mass  transportation  operating
assistance  fund  to  the credit of the metropolitan mass transportation
operating assistance account and the public transportation systems oper-
ating assistance account thereof  in  the  aforestated  manner.  If  the
amounts  initially distributed in such fiscal year are less than the sum
of such products, the comptroller shall  withhold  an  amount  equal  to
twenty-seven  and three-tenths percent of such difference from the first
moneys otherwise payable to the mass transportation operating assistance
fund pursuant to this subdivision and  shall  pay  such  amount  to  the
general fund.
  When  the  commissioner becomes aware of changes or modifications with
respect to the distribution of revenue under this article,  the  commis-
sioner  shall,  as  soon  as  practicable, issue a certification setting
forth the amount of any required adjustment. After receiving the certif-
icate of the commissioner with respect to  any  adjustments,  the  comp-
troller shall forthwith adjust general fund receipts and the revenues to
be deposited or disposed of under this article to reflect the difference
so  certified  by the commissioner. The commissioner shall not be liable
for any overestimate or underestimate of the amount of the distribution.
Nor shall the commissioner be liable for any inaccuracy in  any  certif-
icate  with  respect  to  the amount of the distribution or any required
adjustment with respect to the distribution, but the commissioner  shall
as  soon  as  practicable  after  discovery of any error adjust the next
certification under this section to reflect any such error.
  Prior to making deposits as provided in this  subdivision,  the  comp-
troller shall retain such amount as the commissioner may determine to be
necessary,  subject  to  the approval of the director of the budget, for
reasonable costs of the department in administering and  collecting  the
taxes  deposited  pursuant  to  this  subdivision  and  for  refunds and
reimbursements with respect to such taxes, out of which the  comptroller
shall pay any refunds or reimbursements of such taxes to which taxpayers
shall be entitled.
  S 5. This act shall take effect October 1, 2009; provided however that
sections  one  and  two  of this act shall expire and be deemed repealed
December 31, 2011, and sections three and four of this  act  shall  take
effect January 1, 2012. Effective immediately the commissioner of trans-
portation and the commissioner of taxation and finance are authorized to
promulgate  any rules and regulations necessary for the timely implemen-
tation of this act on or before its effective date.