senate Bill S3750

2011-2012 Legislative Session

Extends the provisions relating to the Gramm-Leach-Bliley act

download bill text pdf

Sponsored By

Archive: Last Bill Status - STRICKEN


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

do you support this bill?

Actions

view actions (4)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 09, 2012 recommit, enacting clause stricken
Jan 04, 2012 referred to banks
Mar 09, 2011 reported and committed to finance
Mar 03, 2011 referred to banks

Votes

view votes

Mar 9, 2011 - Banks committee Vote

S3750
17
0
committee
17
Aye
0
Nay
2
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Banks committee vote details

Co-Sponsors

S3750 - Bill Details

See Assembly Version of this Bill:
A6542
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §51, Chap 298 of 1985; amd §110, Chap 817 of 1987; amd §68, Chap 525 of 1988; amd §§1452, Tax L; amd §11-640, NYC Ad Cd;

S3750 - Bill Texts

view summary

Extends the provisions relating to the Gramm-Leach-Bliley act.

view sponsor memo
BILL NUMBER:S3750

TITLE OF BILL:

An act
to amend chapter 298 of the laws of 1985, amending the tax law relating
to the franchise tax on banking corporations imposed by the tax law,
authorized to be imposed by any city having a population of one million
or more by chapter 772 of the laws of 1966 and imposed by the
administrative code of the city of New York and relating to other
provisions of the tax law, chapter 883 of the laws of 1975 and the
administrative code of the city of New York which relates to such
franchise tax, to amend chapter 817 of the laws of 1987, amending the
tax law and the environmental conservation law, constituting the
business tax reform and rate reduction act of 1987, and to amend
chapter 525 of the laws of 1988, amending the tax law and the
administrative code of the city of New York relating to the imposition
of taxes in the city of New York, in relation to the effectiveness of
certain provisions of such chapters; and to amend the tax law and the
administrative code of the city of New York, in relation to extending
transitional provisions relating to the federal Gramm-Leach-Bliley act

PURPOSE:

This bill would make permanent the bank tax statute and extend for two
years the provisions in the State and City bank taxes relating to
enactment and implementation of the federal Gramm-Leach-Bliley Act.
The provisions of the current bank tax and Gramm-Leach-Bliley
extender are presently expired for taxable years beginning on or
after January 1, 2011.

SUMMARY OF PROVISIONS:

This bill would amend Section 51 of Chapter 298 of the Laws of 1985 by
deleting the sunset provisions which were contained in that law's
effective date. The law currently provides that the amendments
enacted by Chapter 298 shall not apply to taxable years beginning on
or after January 1, 2011.

The bill would also amend Section 110 of Chapter 817 of the Laws of
1987 by deleting the sunset provisions relating to certain amendments
regarding the bad debt deduction for commercial banks. The law
currently provides that the amendments enacted by Chapter 817 shall
not apply to taxable years beginning on or after January 1, 2011.

This bill would lastly amend section 1452 of the tax law and section
11-640 of the administrative code of the City of New York by deleting
the sunset provisions which were contained in that law's effective
date. The law currently provides that the provisions shall not apply
to taxable years beginning on or after January 1, 2011.

JUSTIFICATION:

The State tax on the banking industry was significantly restructured
by Chapter 298 of the Laws of 1985. The intent of this law was to
make the franchise tax on banking corporations more similar to the


franchise tax on general business corporations, and to treat
commercial banks and thrift institutions in a similar manner.

Transitional provisions were added to the New York Tax Law and the New
York City Administrative Code to comply with the federal
Gramm-Leach-Bliley Act beginning in 2000. These provisions removed
prohibitions against the affiliation of banks, securities firms and
insurance companies. Removal of these prohibitions allowed banks
and securities firms to more certain of their taxable status as they
exercised the expanded powers granted to them at the federal level.

Each of the above provisions was only temporarily authorized, and due
to their impermanent nature, tend to cause uncertainty in the
industry regarding tax liability of banking corporations. This has
complicated tax calculation, record keeping and efforts to plan for
the future. These provisions should each be made permanent to
collectively provide filing and accounting continuity for business
taxpayers.

LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS:

The revenues produced by the provisions of this bill are contained
in the 2011-2012 Executive Budget.

EFFECTIVE DATE:

This act would take effect immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3750

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              March 3, 2011
                               ___________

Introduced  by  Sens.  GRIFFO, FARLEY -- read twice and ordered printed,
  and when printed to be committed to the Committee on Banks

AN ACT to amend chapter 298 of the laws of 1985, amending  the  tax  law
  relating  to  the franchise tax on banking corporations imposed by the
  tax law, authorized to be imposed by any city having a  population  of
  one  million or more by chapter 772 of the laws of 1966 and imposed by
  the administrative code of the city of New York and relating to  other
  provisions  of  the  tax  law, chapter 883 of the laws of 1975 and the
  administrative code of the city of New  York  which  relates  to  such
  franchise  tax, to amend chapter 817 of the laws of 1987, amending the
  tax law and the environmental conservation law, constituting the busi-
  ness tax reform and rate reduction act of 1987, and to  amend  chapter
  525  of  the laws of 1988, amending the tax law and the administrative
  code of the city of New York relating to the imposition  of  taxes  in
  the  city  of  New  York,  in relation to the effectiveness of certain
  provisions of such chapters; and to amend the tax law and the adminis-
  trative code of the city of New York, in relation to extending transi-
  tional provisions relating to the federal Gramm-Leach-Bliley act

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

  Section 1. Section 51 of chapter 298 of the laws of 1985, amending the
tax law relating to the franchise tax on banking corporations imposed by
the tax law, authorized to be imposed by any city having a population of
one  million  or  more by chapter 772 of the laws of 1966 and imposed by
the administrative code of the city of New York and  relating  to  other
provisions  of  the  tax  law,  chapter  883 of the laws of 1975 and the
administrative code of the city of New York which relates to such  fran-
chise  tax,  as amended by chapter 67 of the laws of 2010, is amended to
read as follows:
  S 51. This act shall take effect immediately and shall apply to  taxa-
ble years beginning on or after January 1, 1985[, except that:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09960-01-1

S. 3750                             2

  (a) sections one through eight shall not apply to taxable years begin-
ning on or after January 1, 2011;
  (b)  sections  nine,  twelve,  the  amendment  made  to paragraph 9 of
subsection (a) of section 1452 of  the  tax  law  by  section  thirteen,
sections  fifteen,  sixteen,  eighteen,  nineteen, twenty, twenty-three,
twenty-seven, thirty and thirty-two, the amendment made to  paragraph  9
of  subdivision  (a) of section 11-640 of the administrative code of the
city of New York by section thirty-three, sections thirty-five,  thirty-
six, thirty-eight, thirty-nine, forty, and forty-five shall not apply to
corporations  other than savings banks and savings and loan associations
for taxable years beginning on or after January 1, 2011.
  (c)  sections  twenty-one,  twenty-two,  twenty-four,  forty-one   and
forty-two  shall  not apply to corporations other than savings banks and
savings and loan associations for taxable years beginning  on  or  after
January 1, 2011, provided, however, that the provisions of such sections
which  relate  to the alternative minimum tax measured by taxable assets
shall continue to apply to all taxpayers for taxable years beginning  on
or after January 1, 2011;
  (d)  the amendment to the section heading and the opening paragraph of
section 11-643.3 of the administrative code of the city of New York made
by section forty-three  shall  not  apply  to  corporations  other  than
savings banks and savings and loan associations for taxable years begin-
ning  on  or  after  January 1, 2011 with respect to those provisions of
such section 11-643.3 which relate to the basic tax measured  by  entire
net income; and
  (e)  section twenty-eight, and the addition of new section 11-643.5 of
the administrative code of the city of New York made by  section  forty-
four  shall  not  apply  to  corporations  other  than savings banks and
savings and loan associations for taxable years beginning  on  or  after
January 1, 2011, provided, however, that the provisions of such sections
which relate to the alternative minimum taxes measured by assets, issued
capital  stock  and  one  hundred  twenty-five dollars shall continue to
apply to all taxpayers for taxable years beginning on or  after  January
1, 2011].
  S  2.  Subdivisions  (d)  and (f) of section 110 of chapter 817 of the
laws of 1987, amending the tax law and  the  environmental  conservation
law,  constituting  the  business  tax  reform and rate reduction act of
1987, as amended by chapter 67 of the laws of 2010, are amended to  read
as follows:
  (d)  The  provisions of section sixty-seven of this act except insofar
as it amends paragraph 10 of subsection (b) of section 1453 of  the  tax
law, seventy-one and seventy-four shall apply to taxable years beginning
after  December 31, 1986[, provided, however, that new paragraphs 11 and
12 of subsection (b) of section 1453 of the tax law as added by  section
sixty-seven  of  this act, the amendments made by section seventy-one of
this act, and new subsection (i) of section 1453 of the tax law as added
by section seventy-four of this act shall not  apply  to  taxable  years
beginning on or after January 1, 2011];
  (f) The provisions of section one hundred four of this act shall apply
to taxable years beginning after December 31, 1986[, and shall not apply
to  corporations  other  than savings banks and savings and loan associ-
ations for  taxable  years  beginning  on  or  after  January  1,  2011,
provided,  however,  that the provisions of such section which relate to
the alternative minimum tax measured by taxable assets shall continue to
apply to all taxpayers for taxable years beginning on or  after  January
1, 2011].

S. 3750                             3

  S  3.    Subdivisions  (c) and (d) of section 68 of chapter 525 of the
laws of 1988, amending the tax law and the administrative  code  of  the
city  of New York relating to the imposition of taxes in the city of New
York, as amended by chapter 67 of the laws of 2010, are amended to  read
as follows:
  (c)  The  provisions  of sections one, thirty-one, thirty-two, thirty-
three, thirty-six, thirty-seven, forty through  forty-five,  forty-seven
and forty-eight of this act shall apply to taxable years beginning after
December  31,  1986[,  provided,  however,  that  the amendments made by
sections thirty-six and forty-one of this act, and new  subdivision  (i)
of  section 11-641 of the administrative code of the city of New York as
added by section forty-four of this act shall not apply to taxable years
beginning on or after January 1, 2011];
  (d) The provisions of section forty-six of this  act  shall  apply  to
taxable years beginning after December 31, 1986[, and shall not apply to
corporations  other than savings banks and savings and loan associations
for taxable years beginning on  or  after  January  1,  2011,  provided,
however,  that the provisions of such section which relate to the alter-
native minimum tax measured by taxable assets shall continue to apply to
all taxpayers for taxable years beginning on or after January 1, 2011];
  S 4. Paragraphs 1 and 2 of subsection (m) of section 1452 of  the  tax
law,  as  amended by chapter 24 of the laws of 2010, are amended to read
as follows:
  (1) Notwithstanding anything to the contrary contained in this section
other than subsection (n) of this section, a  corporation  that  was  in
existence  before  January  first,  two  thousand  [ten]  ELEVEN and was
subject to tax under article nine-A of this chapter for its last taxable
year beginning before January first, two thousand  [ten]  ELEVEN,  shall
continue  to  be taxable under such article for all taxable years begin-
ning on or after January first, two thousand  [ten]  ELEVEN  and  before
January  first,  two thousand [eleven] THIRTEEN.  The preceding sentence
shall not apply to any taxable year during which such corporation  is  a
banking  corporation  described  in  paragraphs  one  through  eight  of
subsection (a) of this section. Notwithstanding anything to the contrary
contained in this section other than subsection (n) of this  section,  a
banking  corporation or corporation that was in existence before January
first, two thousand [ten] ELEVEN and was subject to tax under this arti-
cle for its last taxable year beginning before January first, two  thou-
sand  [ten]  ELEVEN, shall continue to be taxable under this article for
all taxable years beginning on or  after  January  first,  two  thousand
[ten] ELEVEN and before January first, two thousand [eleven] THIRTEEN or
in which the corporation satisfies the requirements for a corporation to
elect  to  be taxable under this article. Provided further, that nothing
in this subsection shall prohibit a corporation that elected pursuant to
subsection (d) of this section to be taxable  under  article  nine-A  of
this  chapter  from  revoking  that  election  in  accordance  with such
subsection (d).
  For purposes of this paragraph, a corporation shall be  considered  to
be  subject  to  tax  under article nine-A of this chapter for a taxable
year if such corporation was not a taxpayer but was properly included in
a combined report filed pursuant to section two hundred eleven  of  this
chapter  for  such taxable year and a corporation shall be considered to
be subject to tax under this article for a taxable year if  such  corpo-
ration was not a taxpayer but was properly included in a combined return
filed  pursuant  to  subsection  (f)  or (g) of section fourteen hundred
sixty-two of this article for such taxable year. A corporation that  was

S. 3750                             4

in  existence  before January first, two thousand [ten] ELEVEN but first
becomes a taxpayer in a taxable  year  beginning  on  or  after  January
first,  two thousand [ten] ELEVEN and before January first, two thousand
[eleven] THIRTEEN, shall be considered for purposes of this paragraph to
have  been  subject  to tax under article nine-A of this chapter for its
last taxable year beginning before January  first,  two  thousand  [ten]
ELEVEN  if  such  corporation  would have been subject to tax under such
article for such taxable year if it had  been  a  taxpayer  during  such
taxable  year. A corporation that was in existence before January first,
two thousand [ten] ELEVEN but first becomes a taxpayer in a taxable year
beginning on or after January  first,  two  thousand  [ten]  ELEVEN  and
before  January  first, two thousand [eleven] THIRTEEN, shall be consid-
ered for purposes of this paragraph to have been subject  to  tax  under
this  article  for its last taxable year beginning before January first,
two thousand [ten] ELEVEN if such corporation would have been subject to
tax under this article for such taxable year if it had been  a  taxpayer
during such taxable year.
  (2) Notwithstanding anything to the contrary contained in this section
other  than  subsection  (n) of this section, a corporation formed on or
after January first, two thousand [ten] ELEVEN and before January first,
two thousand [eleven] THIRTEEN may elect to be subject to tax under this
article or under article nine-A of this chapter for  its  first  taxable
year  beginning on or after January first, two thousand [ten] ELEVEN and
before January first, two thousand [eleven] THIRTEEN in which either (i)
sixty-five percent or more of its voting stock is owned  or  controlled,
directly  or  indirectly  by  a  financial holding company, provided the
corporation whose voting stock is so owned or controlled is  principally
engaged  in  activities that are described in section 4(k)(4) or 4(k)(5)
of the federal bank holding company act of nineteen  hundred  fifty-six,
as  amended and the regulations promulgated pursuant to the authority of
such section, or (ii) it is a financial subsidiary.  An  election  under
this  paragraph may not be made by a corporation described in paragraphs
one through eight of subsection (a) of this section or in subsection (e)
of this section.  In addition, an election under this paragraph may  not
be made by a corporation that is a party to a reorganization, as defined
in  subsection  (a) of section 368 of the internal revenue code of 1986,
as amended,  of  a  corporation  described  in  paragraph  one  of  this
subsection if both corporations were sixty-five percent or more owned or
controlled, directly or indirectly, by the same interests at the time of
the reorganization.
  An  election  under  this paragraph must be made by the taxpayer on or
before the due date for filing its return  (determined  with  regard  to
extensions  of  time  for  filing)  for the applicable taxable year. The
election to be taxed under article nine-A of this chapter shall be  made
by  the  taxpayer  by filing the report required pursuant to section two
hundred eleven of this chapter and the election to be taxed  under  this
article  shall  be  made  by  the taxpayer by filing the return required
pursuant to section fourteen hundred  sixty-two  of  this  article.  Any
election  made pursuant to this paragraph shall be irrevocable and shall
apply to each subsequent taxable year  beginning  on  or  after  January
first,  two thousand [ten] ELEVEN and before January first, two thousand
[eleven] THIRTEEN, provided that  the  stock  ownership  and  activities
requirements  described in subparagraph (i) of this paragraph are met or
such corporation  described  in  subparagraph  (ii)  of  this  paragraph
continues as a financial subsidiary.

S. 3750                             5

  S  5.  Paragraphs  1 and 2 of subdivision (l) of section 11-640 of the
administrative code of the city of New York, as amended by chapter 24 of
the laws of 2010, are amended to read as follows:
  (1) Notwithstanding anything to the contrary contained in this section
other  than  subdivision  (m) of this section, a corporation that was in
existence before January  first,  two  thousand  [ten]  ELEVEN  and  was
subject to tax under subchapter two of this chapter for its last taxable
year  beginning  before  January first, two thousand [ten] ELEVEN, shall
continue to be taxable under  such  subchapter  for  all  taxable  years
beginning  on  or  after  January  first,  two thousand [ten] ELEVEN and
before January first, two thousand [eleven]  THIRTEEN.    The  preceding
sentence  shall  not  apply to any taxable year during which such corpo-
ration is a banking corporation  described  in  paragraphs  one  through
eight  of  subdivision (a) of this section.  Notwithstanding anything to
the contrary contained in this section other  than  subdivision  (m)  of
this section, a banking corporation or corporation that was in existence
before  January  first, two thousand [ten] ELEVEN and was subject to tax
under this subchapter for its last taxable year beginning before January
first, two thousand [ten] ELEVEN, shall continue  to  be  taxable  under
this  subchapter  for  all  taxable  years beginning on or after January
first, two thousand [ten] ELEVEN and before January first, two  thousand
[eleven] THIRTEEN or in which the corporation satisfies the requirements
for a corporation to elect to be taxable under this subchapter. Provided
further,  that  nothing in this subdivision shall prohibit a corporation
that elected pursuant to subdivision (d) of this section to  be  taxable
under  subchapter  two  of  this  chapter from revoking that election in
accordance with subdivision (d) of this section. For  purposes  of  this
paragraph,  a corporation shall be considered to be subject to tax under
subchapter two of this chapter for a taxable year  if  such  corporation
was  not a taxpayer but was properly included in a combined report filed
pursuant to subdivision four of section 11-605 of this chapter for  such
taxable  year and a corporation shall be considered to be subject to tax
under this subchapter for a taxable year if such corporation was  not  a
taxpayer  but  was properly included in a combined report filed pursuant
to subdivision (f) or (g) of section 11-646 of this part for such  taxa-
ble  year. A corporation that was in existence before January first, two
thousand [ten] ELEVEN but first becomes a taxpayer  in  a  taxable  year
beginning  on  or  after  January  first,  two thousand [ten] ELEVEN and
before January first, two thousand [eleven] THIRTEEN, shall  be  consid-
ered  for  purposes  of this paragraph to have been subject to tax under
subchapter two of this chapter  for  its  last  taxable  year  beginning
before  January  first,  two  thousand  [ten] ELEVEN if such corporation
would have been subject to tax under such subchapter  for  such  taxable
year  if  it had been a taxpayer during such taxable year. A corporation
that was in existence before January first, two  thousand  [ten]  ELEVEN
but  first  becomes  a  taxpayer in a taxable year beginning on or after
January first, two thousand [ten] ELEVEN and before January  first,  two
thousand  [eleven]  THIRTEEN,  shall  be considered for purposes of this
paragraph to have been subject to tax under this subchapter for its last
taxable year beginning before January first, two thousand  [ten]  ELEVEN
if such corporation would have been subject to tax under this subchapter
for  such  taxable  year  if  it had been a taxpayer during such taxable
year.
  (2) Notwithstanding anything to the contrary contained in this section
other than subdivision (m) of this section, a corporation formed  on  or
after January first, two thousand [ten] ELEVEN and before January first,

S. 3750                             6

two thousand [eleven] THIRTEEN may elect to be subject to tax under this
subchapter or under subchapter two of this chapter for its first taxable
year  beginning on or after January first, two thousand [ten] ELEVEN and
before January first, two thousand [eleven] THIRTEEN in which either (i)
sixty-five  percent  or more of its voting stock is owned or controlled,
directly or indirectly by a  financial  holding  company,  provided  the
corporation  whose voting stock is so owned or controlled is principally
engaged in activities that are described in section 4(k)(4)  or  4(k)(5)
of  the  federal bank holding company act of nineteen hundred fifty-six,
as amended and the regulations promulgated pursuant to the authority  of
such  section  or  (ii)  it is a financial subsidiary. An election under
this paragraph may not be made by a corporation described in  paragraphs
one  through  eight of subdivision (a) of this section or in subdivision
(e) of this section. In addition, an election under this  paragraph  may
not  be  made  by  a corporation that is a party to a reorganization, as
defined in subsection (a) of section 368 of the internal revenue code of
1986, as amended, of a corporation described in paragraph  one  of  this
subdivision  if  both corporations were sixty-five percent or more owned
or controlled, directly or indirectly by the same interests at the  time
of the reorganization.
  An  election  under  this paragraph must be made by the taxpayer on or
before the due date for filing its return  (determined  with  regard  to
extensions  of  time  for  filing)  for the applicable taxable year. The
election to be taxed under subchapter two of this chapter shall be  made
by  the  taxpayer  by filing the return required pursuant to subdivision
one of section 11-605 of this chapter and the election to be taxed under
this subchapter shall be made by  the  taxpayer  by  filing  the  return
required pursuant to subdivision (a) of section 11-646 of this part. Any
election  made pursuant to this paragraph shall be irrevocable and shall
apply to each subsequent taxable year  beginning  on  or  after  January
first,  two thousand [ten] ELEVEN and before January first, two thousand
[eleven] THIRTEEN, provided that  the  stock  ownership  and  activities
requirements  described in subparagraph (i) of this paragraph are met or
such corporation  described  in  subparagraph  (ii)  of  this  paragraph
continues as a financial subsidiary.
  S  6.  Subparagraph  (iv) of paragraph 2 of subdivision (f) of section
1462 of the tax law, as amended by chapter 24 of the laws  of  2010,  is
amended to read as follows:
  (iv)  (A)  Notwithstanding  any  provision of this paragraph, any bank
holding company exercising its corporate franchise or doing business  in
the  state  may  make  a  return on a combined basis without seeking the
permission of the commissioner with any banking  corporation  exercising
its corporate franchise or doing business in the state in a corporate or
organized  capacity  sixty-five percent or more of whose voting stock is
owned or controlled, directly or indirectly, by such bank holding compa-
ny, for the first taxable year beginning on or after January first,  two
thousand and before January first, two thousand [eleven] THIRTEEN during
which  such  bank holding company registers for the first time under the
federal bank holding company act, as amended, and also elects  to  be  a
financial holding company. In addition, for each subsequent taxable year
beginning  after  January  first, two thousand and before January first,
two thousand [eleven] THIRTEEN, any such bank holding company  may  file
on  a  combined basis without seeking the permission of the commissioner
with any banking corporation that is exercising its corporate  franchise
or  doing  business in the state and sixty-five percent or more of whose
voting stock is owned or controlled, directly  or  indirectly,  by  such

S. 3750                             7

bank  holding  company  if either such banking corporation is exercising
its corporate franchise or doing business in the state in a corporate or
organized capacity for the first time  during  such  subsequent  taxable
year,  or sixty-five percent or more of the voting stock of such banking
corporation is owned or controlled, directly or indirectly, by such bank
holding company for the first time during such subsequent taxable  year.
Provided however, for each subsequent taxable year beginning after Janu-
ary  first, two thousand and before January first, two thousand [eleven]
THIRTEEN, a banking corporation described in either of the two preceding
sentences which filed on a combined basis with  any  such  bank  holding
company  in a previous taxable year, must continue to file on a combined
basis with such bank holding company if such banking corporation, during
such subsequent taxable year, continues to exercise its corporate  fran-
chise  or  do business in the state in a corporate or organized capacity
and sixty-five percent or more  of  such  banking  corporation's  voting
stock  continues  to  be owned or controlled, directly or indirectly, by
such bank holding company, unless the permission of the commissioner has
been obtained to file on a separate basis for  such  subsequent  taxable
year. Provided further, however, for each subsequent taxable year begin-
ning  after  January  first,  two thousand and before January first, two
thousand [eleven] THIRTEEN, a banking corporation described in either of
the first two sentences of this clause which did not file on a  combined
basis with any such bank holding company in a previous taxable year, may
not  file  on a combined basis with such bank holding company during any
such subsequent taxable year unless the permission of  the  commissioner
has  been obtained to file on a combined basis for such subsequent taxa-
ble year.
  (B) Notwithstanding any provision of this paragraph other than  clause
(A)  of this subparagraph, the commissioner may not require a bank hold-
ing company which, during a taxable year beginning on or  after  January
first,  two  thousand  and  before  January first, two thousand [eleven]
THIRTEEN, registers for the first time during such  taxable  year  under
the  federal bank holding company act, as amended, and also elects to be
a financial holding company, to make a return on a  combined  basis  for
any  taxable  year beginning on or after January first, two thousand and
before January first, two thousand  [eleven]  THIRTEEN  with  a  banking
corporation sixty-five percent or more of whose voting stock is owned or
controlled, directly or indirectly, by such bank holding company.
  S  7.  Subparagraph  (iv) of paragraph 2 of subdivision (f) of section
11-646 of the administrative code of the city of New York, as amended by
chapter 24 of the laws of 2010, is amended to read as follows:
  (iv) (A) Notwithstanding any provision of  this  paragraph,  any  bank
holding  company exercising its corporate franchise or doing business in
the city may make a return on  a  combined  basis  without  seeking  the
permission  of  the commissioner with any banking corporation exercising
its corporate franchise or doing business in the city in a corporate  or
organized  capacity  sixty-five percent or more of whose voting stock is
owned or controlled, directly or indirectly, by such bank holding compa-
ny, for the first taxable year beginning on or after January first,  two
thousand and before January first, two thousand [eleven] THIRTEEN during
which  such  bank holding company registers for the first time under the
federal bank holding company act, as amended, and also elects  to  be  a
financial holding company. In addition, for each subsequent taxable year
beginning  after  January  first, two thousand and before January first,
two thousand [eleven] THIRTEEN, any such bank holding company  may  file
on  a  combined basis without seeking the permission of the commissioner

S. 3750                             8

with any banking corporation that is exercising its corporate  franchise
or  doing  business  in the city and sixty-five percent or more of whose
voting stock is owned or controlled, directly  or  indirectly,  by  such
bank  holding  company  if either such banking corporation is exercising
its corporate franchise or doing business in the city in a corporate  or
organized  capacity  for  the  first time during such subsequent taxable
year, or sixty-five percent or more of the voting stock of such  banking
corporation is owned or controlled, directly or indirectly, by such bank
holding  company for the first time during such subsequent taxable year.
Provided however, for each subsequent taxable year beginning after Janu-
ary first, two thousand and before January first, two thousand  [eleven]
THIRTEEN, a banking corporation described in either of the two preceding
sentences  which  filed  on  a combined basis with any such bank holding
company in a previous taxable year, must continue to file on a  combined
basis with such bank holding company if such banking corporation, during
such  subsequent taxable year, continues to exercise its corporate fran-
chise or do business in the city in a corporate  or  organized  capacity
and  sixty-five  percent  or  more  of such banking corporation's voting
stock continues to be owned or controlled, directly  or  indirectly,  by
such bank holding company, unless the permission of the commissioner has
been  obtained  to  file on a separate basis for such subsequent taxable
year. Provided further, however, for each subsequent taxable year begin-
ning after January first, two thousand and  before  January  first,  two
thousand [eleven] THIRTEEN, a banking corporation described in either of
the  first two sentences of this clause which did not file on a combined
basis with any such bank holding company in a previous taxable year, may
not file on a combined basis with such bank holding company  during  any
such  subsequent  taxable year unless the permission of the commissioner
has been obtained to file on a combined basis for such subsequent  taxa-
ble year.
  (B)  Notwithstanding any provision of this paragraph other than clause
(A) of this subparagraph, the commissioner may not require a bank  hold-
ing  company  which, during a taxable year beginning on or after January
first, two thousand and before  January  first,  two  thousand  [eleven]
THIRTEEN,  registers  for  the first time during such taxable year under
the federal bank holding company act, as amended, and also elects to  be
a  financial  holding  company, to make a return on a combined basis for
any taxable year beginning on or after January first, two  thousand  and
before  January  first,  two  thousand  [eleven] THIRTEEN with a banking
corporation sixty-five percent or more of whose voting stock is owned or
controlled, directly or indirectly, by such bank holding company.
  S 8. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.