senate Bill S50002

Signed By Governor
2011-2012 Legislative Session

Enacts major components of legislation relating to issues deemed necessary to the state

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Archive: Last Bill Status - Signed by Governor


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Dec 09, 2011 signed chap.56
Dec 08, 2011 delivered to governor
Dec 07, 2011 returned to senate
passed assembly
message of necessity - 3 day message
motion to amend lost
motion to amend lost
ordered to third reading rules cal.2
substituted for a40002
referred to ways and means
delivered to assembly
passed senate
message of necessity
ordered to third reading cal.2
referred to finance

Votes

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S50002 - Bill Details

See Assembly Version of this Bill:
A40002
Law Section:
Tax Law
Laws Affected:
Amd Tax L, generally; add §25-a, Lab L; add Art 20 §§420 - 429, Ec Dev L; add §1326-b, RPT L; amd §182, Exec L; amd §13, Chap 260 of 2011
Versions Introduced in 2011-2012 Legislative Session:
A40002

S50002 - Bill Texts

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Relates to enacting into law major components of law necessary to the state; relates to tax rates and exclusions under the metropolitan commuter transportation mobility tax; relates to tax rates imposed on NY manufacturers; establishes a youth works tax credit; establishes the empire state jobs retention program; establishes the infrastructure investment act; enacts Hurricane Irene and Tropical storm Lee assessment relief and flood recover program; prohibits MTA funds diversion; requires compliance with project labor agreements under NY-SUNY 2020 challenge grant program.

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BILL NUMBER:S50002

TITLE OF BILL:

An act
to amend the tax law, in relation to personal
income tax rates and benefit recapture and repealing certain
provisions of such law relating thereto
(Part A);
to amend the tax law, in relation to the tax rates and exclusions under
the metropolitan commuter transportation mobility tax
(Part B);
to amend the tax law, in relation to tax rates imposed on New York
manufacturers
(Part C);
to amend the labor law and the tax law, in
relation to establishing the New York youth works tax
credit program (Part D);
to amend the economic development law
and the tax law, in relation to creating the
empire state jobs retention program (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 expiration thereof (Part F);
to establish the Hurricane Irene and Tropical
Storm Lee assessment relief
act (Part G);
to create the Hurricane Irene-Tropical Storm Lee Flood Recovery Grant
Program (Part H);
to amend the real property tax law, in relation to authorizing school
districts to permit installment payments of real property taxes in
certain school districts affected by floods or natural disasters;
and providing for the repeal of certain provisions upon the expiration
thereof (Part I);
to amend the executive law, in relation to a prohibition on diversion of
funds dedicated to the metropolitan transportation authority or the New
York city transit authority and any of their subsidiaries (Part J); and
to amend chapter 260 of the laws of 2011, relating to establishing
components of the NY-SUNY 2020 challenge grant program, in relation to
requiring compliance with project labor agreements (Part K)

PURPOSE:

This bill contains provisions which would implement key components of
a comprehensive New York Works Agenda. These initiatives, when
implemented, will create thousands of jobs with new investments and
cut taxes for middle class New Yorkers. It is imperative that we put
these strategies in place immediately in order to stimulate the
economy and put the State on a. path of economic growth.

This bill would provide the first major restructuring of the tax code
in decades, additional relief for areas devastated by recent floods,
including a grant program, and job retention credit, tax relief for
small businesses and schools, and permit the use of "design build"
for projects related to the State's physical infrastructure therefore
reducing.costs and significantly shortening construction time. The


bill would also create the New York Youth Works Act Tax Credit
program which provides tax incentives to qualified employers for
hiring at-risk or disadvantaged youth in full or part time jobs.

Part A

SUMMARY OF PROVISIONS:

Section 1 of this part would renumber paragraph (1) of subsection (a)
of § 601 of the Tax Law to make it paragraph 1-a, and add a new
paragraph 1 which establishes new tax rates for resident married
individuals filing joint returns and resident surviving spouses for
(1) the taxable years beginning after 2011 and before 2015, and (2)
for taxable years beginning after 2014.

For taxable years beginning after 2011 and before 2015:

If the New York taxable income is: The tax is:

Not over $16,000 4% of taxable income
Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
$16,000
Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
$22,000
Over $26,000 but not over $40,000 $1,120 plus 5.90% of excess
over $26,000
Over $40,000 but not over $150,000 $1,946 plus 6.45% of excess
over $40,000
Over $150,000 but not over $300,000 $9,041 plus 6.65% of excess
over $150,000
Over $300,000 but not over $2,000,000 $19,016 plus 6.85% of excess
over $300,000
Over $2,000,000 $135,466 plus 8.82% of excess
over $2,000,000

For taxable years beginning after 2014, the following brackets
and dollar amounts shall apply, as adjusted by the cost of living
adjustment prescribed in §601-a of the Tax Law for
tax years 2013-2014:

If the New York taxable income is: The tax is:

Not over $16,000 4% of taxable income
Over $16,000 but not over $22,000 $640 plus 4.5% of excess
over $16,000
Over $22,000 but not over $26,000 $910 plus 5.25% of excess
over $22,000
Over $26,000 but not over $40,000 $1,120 plus 5.90% of excess
over $26,000
Over $40,000 $1,946 plus 6.85% of excess
over $40,000

Section 2 of this part would-amend § 601(a) (2) of the Tax Law so that
it no longer applies to the taxable years beginning after 2011.

Section 3 of this part would amend § 601(b) of the Tax Law by
renumbering paragraph 1 paragraph to make it 1-a and adding a new


paragraph 1, which sets tax rates for resident heads of households
for (1) the taxable years beginning after 2011 and before 2015, and
(2) for taxable years beginning after 2014.

For taxable years beginning after 2011 and before 2015:

If the New York taxable income is: The tax is:

Not over $12,000 4% of taxable income
Over $12,000 but not over $16,500 $480 plus 4.5% of excess
over $12,000
Over $16,500 but not over $19,500 $683 plus 5.25% of excess
over $16,500
Over $19,500 but not over $30,000 $840 plus 5.90% of excess
over $19,500
Over $30,000 but not over $100,000 $1,460 plus 6.45% of excess
over $30,000
Over $100,000 but not over $250,000 $5,975 plus 6.65% of excess
over $100,000
Over $250,000 but not over $1,500,000 $15,950 plus 6.85% of excess
over $250,000
Over $1,500,000 $101,575 plus 8.82% of excess
over $1,500,000

For taxable years beginning after 2014. the following
brackets and
dollar amounts shall apply, as adjusted by the cost of living
adjustment prescribed in 601-a of the Tax Law for tax
years 2013-2014:

If the New York taxable income is: The tax is:

Not over $12,000 4% of taxable income
Over $12,000 but not over $16,500 $480 plus 4.5% of excess
over $12,000
Over $16,500 but not over $19,500 $683 plus 5.25% of excess
over $16,500
Over $19,500 but not over $30,000 $840 plus 5.90% of excess
over $19,500
Over $30,000 $1,460 plus 6.85% of excess
over $30,000

Section 4 of this part would amend § 601(b)(2) of the Tax Law so that
it no longer applies to the taxable years beginning after 2011.

Section 5 of this part would renumber paragraph 1 of § 601(c) of the
Tax Law to make it paragraph 1-a, and adds a new paragraph 1 which
sets tax rates for resident unmarried individuals, resident married
individuals filing separate returns, and resident estates and trusts
for (1) the taxable years beginning after 2011 and before 2015, and
(2) the taxable years beginning after 2014.

For the taxable years beginning after 2011 and before
2015:

If the New York taxable income is: The tax is:


Not over $8,000 4% of taxable income
Over $8,000 but not over $11,000 $320 plus 4.5% of excess
over $8,000
Over $11,000 but not over $13,000 $455 plus 5.25% of excess
over $11,000
Over $13,000 but not over $20,000 $560 plus 5.90% of excess
over $13,000
Over $20,000 but not over $75,000 $973 plus 6.45% of excess
over $20,000
Over $75,000 but not over $200,000 $4,521 plus 6.65% of excess
over $75,000
Over $200,000 but not over $1,000,000 $12,833 plus 6.85% of excess
over $200,000
Over $1,000,000 $67,633 plus 8.82% of excess
over $1,000,000
For the taxable years beginning after 2014, the following
brackets and
dollar amounts shall apply. as adjusted by the cost of living
adjustment prescribed in § 601-a of the Tax Law for tax years
2013-2014:

If the New York taxable income is: The tax is:

Not over $8,000 4% of taxable income
Over $8,000 but not over $11,000 $320 plus 4.5% of excess
over $8,000
Over $11,000 but not over $13,000 $455 plus 5.25% of excess
over $11,000
Over $13,000 but not over $20,000 $560 plus 5.90% of excess
over $13,000
Over $20,000 $973 plus 6.85% of excess
over $20,000

Section 6 of this part would amend the opening paragraph of
601(c)(2) of the Tax Law so that it no longer applies to the taxable
years beginning after 2011.

Section 7 of this part would add a new subsection (d-1) to § 601 to
add tax table benefit recapture provisions for taxable years
beginning after 2011 and ending before 2015, for various types of
taxpayers.

Section 8 of this part would add a new (d)(2) to § 601(d)(1) to
provide tax table benefit recapture provisions for tax years
beginning after 2014.

Section 9 of this part would amend the Tax Law by adding a new
601-a, which describes how to calculate cost of living adjustments
for the 2013 and 2014 tax years and how to apply them.

Section 10 of this part would add a new subsection (f) to § 614 which
provides that for the years after 2014 the standard deductions set
forth in § 614 shall be adjusted by the cost of living adjustment
established in § 601-a for tax years 2013-2014.

Section 11 authorizes the Commissioner of Taxation and Finance to
promulgate withholding tables for 2012 by emergency regulation.


Section 12 of this part states that the act would take effect
immediately.

EXISTING LAW:

Article 22 of the Tax Law establishes the rates, manner and procedures
for the payment, withholding and deductions as they pertain to New
York State's personal income tax. Tax Law § 601 addresses the
imposition of the tax.

STATEMENT IN SUPPORT:

The State's tax system is in need of reform, both as a matter of sound
economic policy to promote growth, and as a matter of fundamental
fairness. This part of the bill addresses that need.

Under the Tax Law, an individual in New York making $20,000 and a
married couple with an annual income of $40,000, pay income tax at
the same marginal rate as an individual making $20 million a year.
Furthermore, the range between the lowest and highest marginal rates
spans only 2.85 percent, so regardless of differences in income, New
Yorkers pay tax at very similar rates.

It is imperative that this unfairness be remedied, and this part of
the bill would do so as follows. First, it creates a set of tax
brackets with a broader range of marginal rates, and applies those
rates to more finely defined income groups, particularly in the
middle income range. This range of rates will also include brackets
for high earners. The more one makes, the higher the marginal rate
assigned; those who have greater capacity will pay more tax.

These changes to the Tax Law are also part of a broader economic
policy. Enabling middle class families to keep more of their money in
their pockets is an important element of a multifaceted approach to
facilitating our State's economic growth.

As a whole, this part of the bill would resolve longstanding
fundamental unfairness in the New York Tax Law while advancing a
sound economic policy that will stimulate the economy.

LEGISLATIVE HISTORY:

This is a new proposal.

EFFECTIVE DATE:

This proposal would take effect immediately.

Part B

SUMMARY OF PROVISIONS:

Section 1 of this part would amend subsection (b) of section 800 of
the Tax Law to exclude from the mobility tax: (1) employers with
payroll expenses less than $312,500 per calendar quarter; and (2)
eligible education institutions, which include any public school
district, a board of cooperative educational services, a public


elementary or secondary school, a school approved pursuant to
articles eighty-five or eighty-nine of the Education Law to serve
students with disabilities of school age, or a nonpublic elementary
or secondary school.

Section 2 of this part would amend subsection (a) of section 801 of
the Tax Law to modify the tax rates beginning April 1, 2012, as
follows:

* 0.11 percent for employers with quarterly payroll expenses no greater
than $375,000

* 0.23 percent for employers with quarterly payroll expenses no
greater than $437,500

* 0.34 percent for employers with quarterly payroll expenses in
excess of $437,500

In addition, self-employed individuals with earnings attributable to
the Metropolitan Commuter Transportation District ("MCTD") of $50,000
during the tax years beginning on January 1, 2012, would be excluded
from the mobility tax.

Section 3 of this part provides that any reductions in transit aid
attributable to reductions in the metropolitan commuter
transportation mobility tax authorized under Article 23 of the Tax
Law would be offset through alternative sources that will be included
in the state budget

Section 4 of this part states that it would take effect immediately,
provided however, that section 1 of this part and the amendments in
section 2 of this part that concern employers would not take effect
until April 1, 2012.

EXISTING LAW:

The current definition of "employer" covers those with annual payroll
expenses in excess of $2,500 per quarter. The current tax rate
on.payroll expenses is 0.34 percent and 0.34 percent of net earnings
from self-employment attributable to the MCTD. Self-employed
individuals with earnings attributable to the MCTD of $10,000 or less
are exempt from the mobility tax.

Additionally, although they are required to pay the MTA mobility tax
in the first instance, under section 3609-g of the Education Law,
school districts are eligible for State reimbursement of MTA payroll
tax payments.

STATEMENT IN SUPPORT:

This part of the bill will promote the State's economic growth, in
particular by focusing on the needs of small businesses, which are
the engine for job creation. The current law requires businesses in
the New York metropolitan area, regardless of size, to pay a 0.34
percent mobility tax on their payroll. In recognition of the fact
that this mobility tax disproportionately burdens small businesses,
these amendments eliminate the tax on the smallest businesses and


create a progressive structure for larger organizations. The
reduction or elimination of payroll taxes decreases the cost to
businesses of hiring new employees and allows businesses to use the
funds they would have paid out in taxes to invest in development
instead. In addition, this part of the bill both eliminates the
rebate structure far the public school tax exemption and ensures tax
parity between private and public schools.

At this time, it is of utmost importance that the State take
responsibility far improving conditions for economic growth.

LEGISLATIVE HISTORY:

This is a new proposal.

BUDGET IMPLICATIONS:

This proposal would reduce mobility tax collections by $310,000,000
annually.

EFFECTIVE DATE:

This part of the bill would take effect immediately, provided however,
the amendments applicable to employers would take effect for the
quarter beginning April 1, 2012.

Part C

SUMMARY OF PROVISIONS:

Section 1 of this part would amend Tax Law § 210.1(a)(vi) to reduce
the tax rate on eligible qualified New York manufacturers from 6.5
percent to 3.25 percent of the taxpayer's entire net income base for
the taxable years beginning on or after January 1, 2012, and before
January 1, 2015. The rate would return to 6.5 percent for subsequent
tax years. This amendment would also require the Commissioner of the
Department of Taxation & Finance to establish guidelines and criteria
for manufacturer eligibility. The guidelines and criteria would
include, but not be limited to, a number of factors such as regional
unemployment, the economic impact that manufacturing has on the
surrounding
community, and population decline within the region and median in
which the manufacturer is-located. in setting the criteria, the
Commissioner of the Department of Taxation & Finance would be
required to endeavor to keep the total annual cost of the lower tax
rates to the State to no more than $25,000,000.

Section 2 of this part would amend Tax Law § 210(1)(c)(ii) such that
for the taxable years beginning on or after January 1, 2012, and
before January 1, 2015, the applicable tax rate for the alternative
minimum tax would be 0.75 percent of the taxpayer's minimum taxable
income base far eligible qualified New York manufacturers.

Section 3 of this part would amend Tax Law § 210(1)(d) by adding a new
paragraph 5 such that for the tax years beginning on or after January
1, 2012, and before January 1, 2015, the amounts prescribed in Tax
Law §§ 210(1)(d)(1) and 210(1)(d)(4) as the fixed dollar minimum tax


for eligible qualified New York manufacturers will be one-half of the
amount stated in those subparagraphs.

Section 4 of this part states that the act would take effect
immediately.

EXISTING LAW:

Qualified New York manufacturers are currently subject to a 6.5
percent tax rate on their entire net income base, a 1.5 percent tax
rate on their minimum taxable income base, and a fixed dollar minimum
tax generally ranging from $25 to $5000, depending on the size of
the taxpayer's New York receipts.

STATEMENT IN SUPPORT:

This proposal would promote economic growth for the State. Over the
last decade, the number of manufacturers in New York has declined by
thirty-two percent. Plants have relocated, in part, to states where
the tax structure is more favorable to them, taking along nearly
twenty-nine percent of the state's manufacturing jobs.

By reducing the tax rate on manufacturers by fifty percent, this
modification to the tax code will help New York retain the
manufacturers still located in the state. It will also increase the
State's attractiveness to new businesses, especially when viewed in
conjunction with the state's existing skilled workforce and new
low-cost energy programs.

In addition, as a result of the tax savings from this part of the
bill, manufacturers will be able to direct more capital to research
and development, giving them an advantage in the marketplace of
innovations. Moreover, manufacturers will have more funds available
to hire new employees. This combination of support for industry and
job creation is key to laying a stable foundation for long-term
economic recovery.

LEGISLATIVE HISTORY:

This is a new proposal.

BUDGET IMPLICATIONS:

This proposal would have an annual fiscal impact of $25,000,000.

EFFECTIVE DATE:

This proposal would be effective immediately.

Part D

SUMMARY OF PROVISIONS:

Section 1 of this part would add a new § 25-a to the Labor Law to
grant the Commissioner of Labor the authority to administer the New
York Youth Works Tax Credit program to provide tax incentives to
"qualified employers" employing at-risk youths in part-time and


full-time positions in the years 2012 and 2013. Under this new
program, the Commissioner may allocate up to $25 million in tax
credits.

A qualified employer would be entitled to a tax credit equal to $500 a
month for up to 6 months for each qualified employee the employer
employs in a full-time job, or $250 a month for up to 6 months for
each qualified employee the employer employs in a part-time job of at
least 20 hours a week. Such an employer would also be entitled to
$1,000 dollars for each qualified employee who is employed for at
least an additional 6 months by the qualified employer in a full-time
job, or $500 for each qualified employee employed for at least an
additional 6 months by the qualified employer in a part-time job of
at least 20 a week. To participate in the program, an employer must
submit an application to the Commissioner after January 1, 2012, but
no later than June 1, 2012. Qualified employees must begin employment
on or after January 1, 2012 and no later than July 1, 2012.

The Commissioner is empowered to establish guidelines and criteria
that specify requirements for employers to participate in the
program, including the types of industries in which the employers
engage and to give preference to employers engaged in demand
occupations or industries or employers located in regional growth
sectors, including those identified by the Regional Economic
Development Councils, such as clean energy, health care, advanced
manufacturing, and conservation.

Section 2 of this part amends Tax Law § 210 to set out the amount and
requirements for application of the New York Youth Works Tax Credit.
These credits would be allowed for the taxable year beginning on or
after January 1, 2012 and before January 1, 2013 or the taxable year
beginning on or after January 1, 2012 and before January 1, 2012,
respectively.

Section 3 of this part amends Tax Law § 606 to add a new subsection
(tt) that provides that a qualified employer shall be allowed a
credit against the tax imposed by Article 22 of the Tax Law equal to
$500 a month for up to 6 months for each qualified employee employed
in a full-time job, or $250 a month for up to 6 months for each
qualified employee employed in a part-time job of at least 20 hours a
week, and $1,000 for each qualified employee employed for at least an
additional 6 months by the qualified employer in a full-'time job or
$500 for each qualified employee employed for at least an
additional 6 months by the qualified employer in a part-time job of at
least 20 hours per week.

Section 4 of this part amends subparagraph B of paragraph 1 of
subsection (i) of Section 606 of the Tax Law to add a new clause
xxxiii permitting application of the New York Youth Works Tax Credit.

Section 5 of this part provides for an immediate effective date.

EXISTING LAW:

This is a new proposal that creates a new tax credit.

STATEMENT IN SUPPORT:


This part of the bill would facilitate the employment of young
disadvantaged workers and would benefit, with a tax credit, qualified
employers hiring these new workers.

Even in a boom economy,younger workers have higher levels of
unemployment than those aged 35 and older. Recent unemployment levels
have escalated to all-time highs as a result of the prolonged and
significant economic downturn of the past few years. According to the
Department of Labor unemployment among the state's youth is more
than 25 percent over a twelve-month period. Unemployment for minority
youth in New York ranges from 35-40 percent.

Exacerbating this problem is the fact that many of these youth also
live in poverty, particularly in larger urban areas. Overall,
approximately 2.3 million young people between the ages 16 and 24
live in poverty in New York State; of particular note is the fact
that approximately 42 percent of these children reside in the state's
top ten urban areas, all of which are areas in which this benefit is
available.

Unemployed and living in poverty, these young people face a
self-fulfilling prophecy of failure. They lack work experience and
face limited educational opportunities. Thus, it is difficult for
them to envision a future where they will be self-sufficient.

This is a crisis within a crisis that needs to be addressed immediately.

The NY Youth Works program will get unemployed disadvantaged youth to
work by providing businesses with hiring incentives toward a goal of
permanent unsubsidized employment. Unemployed youth will also be
provided with work readiness and skills training so that they are
matched to employment.

A job, particularly a job in a sector that is projected to grow, will
provide them not only with financial support and work experience, but
also with a very important first step toward a career and a way out
of poverty.

LEGISLATIVE HISTORY

This is a new proposal.

BUDGET IMPLICATIONS:

This proposal is necessary to promote job growth in the State, and has
an associated cost to the State Financial Plan of $20 million in
State fiscal year 2012-13, and $5 million in State fiscal year 2013-14.

EFFECTIVE DATE:

This part would take effect immediately.

Part E

SUMMARY OF PROVISIONS:


Section 1 of this part would amend the Economic Development Law by
adding a new Article 20, Empire State Jobs Retention Program. The
article would contain nine sections, numbered 420 to 429.

Section 420 would set forth the short title of the article.

Section 421 would contain the legislative findings.

Section 422 would define certain terms used in the article.

Section 423 would provide for eligibility for the Empire State Jobs
Retention Program.

Subdivision 1 of section 423 would require that a business entity
operate in New York State predominantly in one of seven categories of
"strategic industry" enumerated in the subdivision.

Subdivision 2 of section 423 states that the Commissioner will make
eligibility determinations based on an analysis of the entity's
business activity.

Subdivision 3 of section 423 would require participants in the program
to be located in a county in which an emergency has been declared,
demonstrate substantial physical damage and economic harm resulting
from the event that caused the emergency, and have at least one
hundred full-time equivalent jobs in the county where the emergency
has been declared.

Subdivision 4 of section 423 would exclude certain types of business
entities from eligibility for the tax credit described in the article.

Subdivision 5 of section 423 would require business entities to be in
compliance with worker protection laws and regulations, and not owe
past due state taxes. In addition, the businesses may not owe local
property taxes for any year preceding the one in which it applies to
participate, to be eligible for the program.

Section 424 would describe the application and approval process for a
business entity to participate in the program.

Section 425 would provide for the Empire State Jobs Retention Program
credit, which participants in the program would be eligible to claim.
This section prescribes the method of calculating the amount of the
credit, makes the credit refundable, addresses availability of the
credit should a participant not meet eligibility requirements in any
year, and states that the credit may not be claimed for a tax year
before 2012. It also addresses credit eligibility as.it relates to
other articles and sections in the chapter.

Section 426 would set forth the powers and duties of the Commissioner
with regard to the program.

Section 427 would establish records maintenance requirements for
program participants.

Section 428 would describe reporting requirements for participants
and the Commissioner.


Section 429 would provide that the cap on the amount of the cap on the
amount of tax credits issued by the Commissioner under the Program
applies to these credits.

Section 2 of this part would amend the Tax Law by adding a new section
36, which would create the rules governing the jobs retention program
credit. It also lists cross-references in the chapter.

Section 3 of this part would amend Tax Law § 210 by adding a new
subdivision 44, which would allow general business corporations to
claim the credit.

Sections 4 and 5 of this part would amend Tax Law § 606 by adding a
new subsection (tt) which would allow the credit to be claimed by
taxpayers under the personal income tax.

Section 6 of this part would amend Tax Law § 1456 by adding a new
subsection (y) to allow banking corporations to claim the credit.

Section 7 of this part would amend Tax Law § 1511 by adding a new
subdivision (bb) to allow insurance corporations to claim the credit.

Section 8 states that the act would take effect immediately, provided
however that sections two, three, four, five, six, and seven of the
act will apply to taxable years beginning on or after January 1, 2012.

EXISTING LAW:

This is a new legislative proposal.

STATEMENT IN SUPOPRT:

Given the damage caused by Hurricane Irene and Tropical Storm Lee, it
is imperative to mitigate the impact of natural disasters on these
businesses and help them to continue operating in the state and
employing as many impacted New Yorkers as possible.

In order to accomplish those goals and ensure that opportunities for
future economic growth exist, the Empire State Jobs Retention Program
will offer qualifying businesses State tax credits equal to the
product of the gross wages paid for impacted jobs and 6.85 percent.
This credit will give existing businesses the capital they need to
retain and hire more individuals in the case of events leading the
governor to declare an emergency. This program will also make sure
that New York can continue to attract new employers, who will know
that the state is prepared to assist them in case of an emergency. in
addition to benefiting from new employment opportunities,
communities employed by these businesses will be more resilient if an
emergency occurs, because this program will help safeguard their jobs.

LEGISLATIVE HISTORY:

This is a new proposal.

BUDGET IMPLICATIONS:


As the program uses funds available under the excelsior job program
act, the cost is reflected in the current financial plan estimates
for the excelsior job program.

EFFECTIVE DATE:

This proposal would take effect immediately.

Part F

SUMMARY OF PROVISIONS:

Section 1 of this part would provide the title of the act:
"Infrastructure investment act".

Section 2 of this part states the Legislature's findings and
declarations.

Section 3 of this part sets forth applicable definitions for language
used in the bill.

Section 4 of this part would allow an authorized state entity to use
design build
contracts for capital projects related to the State's physical
infrastructure, provided that for
contracts entered into by the Department of Transportation, the Office
of Parks, Recreation and Historic Preservation and the Department of
Environmental Conservation, the total cost of each project shall not
be less than $1,200,000.

Section 5 of this part would establish a two-step method to be used by
an authorized state entity to select an entity with which to enter
into a design build contract.

Section 6 of this part would require that any contact entered into
pursuant to the Act include a clause requiring that any professional
services regulated by Articles 145, 147, and 148 of the Education Law
will be performed by and, where appropriate, stamped and sealed by a
professional licensed in accordance with such articles.

Section 7 of this part would provide that construction for each
capital project undertaken pursuant to this section would be deemed a
"public work" to be performed in accordance with certain provisions
of the Labor Law and be subject to enforcement of the prevailing wage
requirements by the New York State Department of Labor.

Section 8 of this part states that, if otherwise applicable, § 222 of
the State Labor Law and § 135 of the State Finance Law would apply to
capital projects undertaken pursuant to this act.

Section 9 of this part would require that contracts entered into
pursuant to the act comply with the objectives and goals of minority
and women-owned businesses pursuant to article 15-A of the Executive
Law, or, in the case of projects receiving federal aid, comply with
federal requirements for disadvantaged business enterprises.


Section 10 of this part would provide that capital projects undertaken
pursuant to this Act would be subject to the requirements of article
8 of the Environmental Conservation Law and, where applicable, the
national environmental policy act.

Section 11 of this part specifies that, if otherwise applicable,
sections 139-d, 139-j, 139-k, paragraph 1 of subdivision 1 and
paragraph g of subdivision 9 of section 163 of the State Finance Law
will govern capital projects undertaken pursuant to this act.

Section 12 of this part would ensure that submissions of proposals or
responses, or execution of a contract pursuant to this act, will not
to be construed as violations of section 6512 of the Education Law.

Section 13 of this part would ensure that the act does not interfere
with provisions of existing contracts, including any existing
contract with or for the benefit of the holders of the obligations of
the authorized state entity, or rights to award contracts as
otherwise permitted by law.

Section 14 of this part would authorize alternative construction
contract awarding processes and details the rules governing such
processes.

Section 15 of this part would permit authorized state entities to
maintain a list of prequalified contractors who are eligible to
submit a proposal pursuant to the act and
contains a list of criteria that the authorized state entity may take
into consideration for prequalification. This section also would
permit a contractor who is denied
prequalification or whose prequalification is revoked or suspended to
appeal such decision, would provide that if a suspension extends for
more than three months, it will be deemed a revocation, and would
authorize the authorized state entity to proceed with the contract
award during any appeal.

Section 16 of this part states that provisions of this act will not
interfere with the existing powers of New York State public entities
to use alternative project delivery methods.

Section 17 of this part provides that the act will take effect
immediately and will be deemed repealed three years after the date of
enactment, provided that projects with requests for qualifications
issued prior to such repeal will be permitted to continue under this
act notwithstanding such repeal.

EXISTING LAW:

At present, the Department of Transportation, Thruway Authority,
Office of Parks, Recreation and Historic Preservation, Department of
Environmental Conservation, and the Bridge Authority do not have
authority to employ a design build project delivery method.

STATEMENT IN SUPPORT:

Investment in infrastructure is an essential part of a broader policy
to stimulate economic growth. The advantages of design build,


particularly the efficiency and cost savings it could bring to
capital projects, make it an essential tool to facilitate
infrastructure investment. Design build is a project delivery method
in which a single contract is executed with a single entity providing
engineering and construction services. It has proven especially
useful for expediting infrastructure projects and. accelerating
capital investment; essential ingredients to spur growth,

Design build processes achieve this by (1) overlapping design and
construction, making it possible for materials and equipment
procurement and construction work to begin sooner, (2) reducing
potential for duplication of effort, (3) allowing for focus on best
value rather than on negotiated design cost and the initial low bid,
(4) reducing the potential for contractual disputes, and (5)
involving the contractor during design, an arrangement that helps
create conditions for innovation in construction technologies.
Moreover, these methods disperse some of the State's risk by making
the contractor solely responsible for the completed product, and
providing other motivation for the contractor to advance a quality,
on-time project throughout the design and construction process.

New York has a backlog of unmet infrastructure and capital needs and
limited funds to pay for them. Design-build has the potential to
create jobs and accelerate capital investments throughout the State.

LEGISLATIVE HISTORY:

This is a new proposal, though similar legislation has been proposed
in prior years.

BUDGET IMPLICATIONS:

The fiscal impact, of this pilot program cannot be projected. However,
in addition to job creation through the acceleration of projects,
there will be economic benefits to residents and communities if
projects are completed more quickly or additional projects are
completed.

EFFECTIVE DATE:

The proposal would take effect immediately.

Part G

SUMMARY OF PROVISIONS:

Section 1 of this part states the title of the act: "Hurricane Irene
and Tropical Storm Lee Relief Act."

Section. 2 of this part would define terms used in the act.

Section 3 of this part would set the time period within which a
municipality eligible to exercise the provisions of this act must
pass a resolution adopting the provisions of this act.

Section 4 of this part would detail the rules governing how
assessment relief would be granted under this act, what a property


owner must do in order to receive relief, and the responsibilities of
the assessor in implementing the provisions of the act.

Section 5 of this part would provide that any school districts in
counties eligible for assessment relief under this act will not be
responsible for any reduction, incurred due to the provisions of this
act, instate aid that would have been paid pursuant to § 1306-a of
the Real Property Tax Law.

Section 6 of this part would authorize the Director of the Office of
Real Property Tax Services, or other chief administrative official of
that office, to develop a guidance memorandum to assist assessing
units with the implementation of the act.

Section 7 of this part states that this act would take effect
immediately and be deemed to have been in full force and effect on or
after August 26, 2011.

EXISTING LAW:

The current law determines property value for the purposes of 2012
county, city, town and village taxes based on the assessed value as
of March 1, 2011. This proposal,
which could be adopted at the option of a local taxing entity, would
allow a taxing entity to reassess value at a later date for
properties that lost 58 percent or more of their value as a result of
Hurricane Irene or Tropical Storm Lee, or both.

STATEMENT IN SUPPORT:

Hurricane Irene and Tropical Storm Lee caused catastrophic damage
across the state. This legislation provides relief in the form of a
property tax reduction for those New York taxpayers whose property
was substantially damaged by the storms.

LEGISLATIVE HISTORY:

This is a new proposal.

BUDGET IMPLICATIONS:

This is a local option, So there would be no State budget
implications.

EFFECTIVE DATE:

Upon enactment, this proposal would be deemed to have been in effect
as of August 26, 2011.

Part H

SUMMARY OF PROVISIONS:

Section 1 of this part would create the grant program, set forth the
types of grants available under the program, and lay out eligibility
criteria.


Subsection 1(a) would establish a grant program open to small
businesses, farms, multiple dwellings, and not-for-profit
organizations that sustained direct physical flood damage as a result
of Hurricane Irene or Tropical Storm Lee. This subsection sets the
limit for grant size and specifies the types of costs the funds can
be used to cover.

Subsection 1(b) would direct Empire State Development to administer
the grant program of subsection (a) and empower the agency to
establish, as it deems necessary, grant guidelines and additional
eligibility criteria. This subsection would also require Empire State
Development to give preference to applicants demonstrating the
greatest need. The total grant program would be limited to $21,000,000.

Subsection 2(a) would direct Empire State Development, in consultation
with the Department of Environmental Conservation, to administer a
grant program for counties for flood mitigation or flood control
projects in creeks, streams, and brooks. Only counties included in
federal disaster declarations for Hurricane Irene or Tropical Storm
Lee would be eligible to participate in this program.

Subsection 2(b) would cap the grant program established in 2(a) at
$9,000,000 and empower Empire State Development to establish grant
guidelines and additional eligibility criteria as it deems necessary.
This subsection would also direct Empire State Development to give
preference to applicants that demonstrate the greatest need, and to
prioritize remediation projects in cases where failure to undertake
such projects means risking flooding in the future. It would also set
minimum and maximum grant amounts.

Subsection 3 of this part would cover distribution of additional
funds, up to $20,000,000, according to a plan to be developed by the
Director of the Budget. The section would require the Director, in
consultation with the Temporary President of the Senate and the
Speaker of the Assembly, to develop a plan and criteria for
distribution of such additional funding to counties included in the
federal disaster declarations for Hurricane Irene or Tropical Storm
Lee. This Section would also grant discretion to the Director of
Budget to direct or authorize any other State agency to assist in
administration and distribution of the grants.

Section 2 of this part states that the act would take effect
immediately.

EXISTING LAW:

There is no current law addressing this issue.

STATEMENT IN SUPPORT:

The impact of Hurricane Irene and Tropical Storm Lee, storms which
occurred within less than two weeks of each other late this past
summer, was widespread and severe throughout the State. The struggle
to recover from these storms continues three months later. Repair and
remediation of flood damage, and work to prevent future flooding is
of particular importance. Grants made available by this act will


provide much-needed assistance to individuals and counties in New
York which experienced flood damage.

LEGISLATIVE HISTORY:

This is a new proposal.

BUDGET IMPLICATIONS:

This part would establish a grant program that may distribute up to
$50,000,000 to spur recovery efforts in regions of the state affected
by Hurricane Irene and Tropical Storm Lee. Anticipated expenditures
for this new grant program would be reflected in the next quarterly
update to the Financial Plan which will be submitted as part of the
Governor's Executive Budget for Fiscal Year 2012-2013.

EFFECTIVE DATE:

This proposal would take effect immediately.

Part I

SUMMARY OF PROVISIONS:

Section 1 of this part would amend section 1326-b to allow for payment
of school taxes in installments under certain circumstances, even
where a school district does not usually permit payment of taxes in
installments. If a flood or other natural disaster affects a
community during the six months preceding the due date for that
community's school district's school taxes, and the school district
is located in a county included in a federal disaster declaration,
the school board would be permitted to pass a resolution allowing for
payment of taxes in installments and setting the applicable due
dates. This section would also set rules for the implementation of
such resolutions. in addition, for school aid payments for the
2011-2012 school year, the State would be authorized to advance
school aid payments or portions thereof to any school district
that adopts a resolution pursuant to this section of the Real Property
Tax Law.

Section 2 of this part states the effective date.

EXISTING LAW:

The law currently allows installment taxes subject to local approval,
but it does not provide for such an arrangement on an emergency basis.

STATEMENT IN SUPPORT:

In the event of a flood or other disaster, it is imperative to have
tools that allow for a multifaceted approach to relief for affected
communities. This bill would provide a tool at local option that can
serve a targeted local purpose.

LEGISLATIVE HISTORY:

This is a new proposal.


BUDGET IMPLICATIONS:

This is a local option, so there would be no budget implications for
the State.

EFFECTIVE DATE:

This proposal would take effect immediately; however, the
authorization to advance school aid payments would expire on June 30,
2012.

Part J

SUMMARY OF PROVISIONS:

Section 1 of this part would amend Executive Law § 182, as will be
amended in 2011 in proposed legislative bills S. 4257-C and A.
6766-C, to permit the diversion of funds
dedicated for use by the MTA and NYCTA if the Governor declares a
fiscal emergency, communicates such emergency to the Temporary
President of the Senate and the Speaker of the Assembly, and
legislation is passed by both houses authorizing such diversion.

Section 2 provides the effective date.

EXISTING LAW:

The chapter that this would amend would permit the re-allocation of
such funds only by legislation authorizing such a re-allocation.

STATEMENT IN SUPPORT:

This legislation would protect the funds assigned to the MTA and NYCTA
by providing that only in the event that the Governor declares a
fiscal emergency, and there is subsequent legislative authorization,
will re-allocation of such funds be permitted.

LEGISLATIVE HISTORY:

This is a new proposal.

BUDGET IMPLICATIONS:

This proposal has no fiscal impact on the state.

EFFECTIVE DATE:

This proposal would take effect on the same date as the chapter of the
Laws of 2011 amending the Executive Law by adding a new section 182
takes effect.

Part K

SUMMARY OF PROVISIONS:

Section 1 of this part would amend Ch. 260, Laws of 2011 § 13 (b) to
provide that contracts awarded pursuant to the SUNY 2020 Challenge


Grant Program, enacted this year, undertake a project labor agreement
pursuant to Labor Law § 222 if a study performed by the contracting
entity determines, considering various statutorily prescribed
factors, that such an agreement would benefit the construction,
reconstruction, renovation, rehabilitation, improvement or expansion
undertaken through reduced risk of delay, potential cost savings or
potential reduction in the risk of labor unrest in light of any
pertinent local history thereof.

Section 2 of this part provides that this chapter amendment would be
effective immediately.

EXISTING LAW:

The initial legislation provided that such contracts, if not otherwise
subject to Labor Law § 222, would be subject to State Finance Law
135.

STATEMENT IN SUPPORT:

The portion of Ch. 260, Laws of 2011 which this chapter amendment
alters did not accurately reflect the intent of the legislature and
executive. This chapter amendment conforms the law to the original
understanding of the parties.

LEGISLATIVE HISTORY:

This is a new proposal.

BUDGET IMPLICATIONS:

This proposal has no fiscal impact on the state.

EFFECTIVE DATE:

This proposal would take effect immediately.

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

    S. 2                                                        A. 2

                          Extraordinary Session

                      S E N A T E - A S S E M B L Y

                            December 7, 2011
                               ___________

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

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

AN  ACT  to  amend the tax law, in relation to personal income tax rates
  and benefit recapture and repealing certain  provisions  of  such  law
  relating  thereto  (Part  A); to amend the tax law, in relation to the
  tax rates and exclusions under the metropolitan  commuter  transporta-
  tion  mobility  tax (Part B); to amend the tax law, in relation to tax
  rates imposed on New York manufacturers (Part C); to amend  the  labor
  law  and  the  tax law, in relation to establishing the New York youth
  works tax credit program (Part D); to amend the  economic  development
  law  and  the  tax  law, in relation to creating the empire state jobs
  retention program (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  expiration  thereof
  (Part  F);  to  establish  the  Hurricane Irene and Tropical Storm Lee
  assessment relief act (Part G); to create the Hurricane Irene-Tropical
  Storm Lee Flood Recovery Grant Program (Part H);  to  amend  the  real
  property  tax  law,  in  relation  to  authorizing school districts to
  permit installment payments of real property taxes in  certain  school
  districts  affected  by floods or natural disasters; and providing for
  the repeal of certain provisions upon the expiration thereof (Part I);
  to amend the executive law, in relation to a prohibition on  diversion
  of funds dedicated to the metropolitan transportation authority or the
  New  York  city  transit authority and any of their subsidiaries (Part
  J); and to amend chapter 260 of the laws of 2011, relating  to  estab-
  lishing  components  of  the  NY-SUNY 2020 challenge grant program, in
  relation to requiring compliance with project labor  agreements  (Part
  K)

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12105-01-1

S. 2                                2                               A. 2

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

  Section  1.   This act enacts into law major components of legislation
relating to issues deemed necessary for the state.   Each  component  of
this act is wholly contained within a Part identified as Parts A through
K.  The  effective  date  for each particular provision contained within
such Part is set forth in the last section of such Part.  Any  provision
in  any section contained within a Part, including the effective date of
the Part, which makes reference to a section "of this act", when used in
connection with that particular component, shall be deemed to  mean  and
refer  to  the  corresponding  section of the Part in which it is found.
Section three of this act sets forth the general effective date of  this
act.

                                 PART A

  Section 1. Paragraph 1 of subsection (a) of section 601 of the tax law
is renumbered to be paragraph 1-a and a new paragraph 1 is added to read
as follows:
  (1)  (A)  FOR  TAXABLE  YEARS  BEGINNING AFTER TWO THOUSAND ELEVEN AND
BEFORE TWO THOUSAND FIFTEEN:

IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $16,000                      4% OF TAXABLE INCOME
OVER $16,000 BUT NOT OVER $22,000     $640 PLUS 4.5% OF EXCESS OVER
                                      $16,000
OVER $22,000 BUT NOT OVER $26,000     $910 PLUS 5.25% OF EXCESS OVER
                                      $22,000
OVER $26,000 BUT NOT OVER $40,000     $1,120 PLUS 5.90% OF EXCESS OVER
                                      $26,000
OVER $40,000 BUT NOT OVER $150,000    $1,946 PLUS 6.45% OF EXCESS OVER
                                      $40,000
OVER $150,000 BUT NOT OVER $300,000   $9,041 PLUS 6.65% OF EXCESS OVER
                                      $150,000
OVER $300,000 BUT NOT OVER $2,000,000 $19,016 PLUS 6.85% OF EXCESS OVER
                                      $300,000
OVER $2,000,000                       $135,466 PLUS 8.82% OF EXCESS OVER
                                      $2,000,000

  (B) FOR TAXABLE YEARS  BEGINNING  AFTER  TWO  THOUSAND  FOURTEEN,  THE
FOLLOWING  BRACKETS  AND  DOLLAR AMOUNTS SHALL APPLY, AS ADJUSTED BY THE
COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION  SIX  HUNDRED  ONE-A  OF
THIS PART FOR TAX YEARS TWO THOUSAND THIRTEEN AND TWO THOUSAND FOURTEEN:

IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $16,000                      4% OF TAXABLE INCOME
OVER $16,000 BUT NOT OVER $22,000     $640 PLUS 4.5% OF EXCESS OVER
                                      $16,000
OVER $22,000 BUT NOT OVER $26,000     $910 PLUS 5.25% OF EXCESS OVER
                                      $22,000
OVER $26,000 BUT NOT OVER $40,000     $1,120 PLUS 5.90% OF EXCESS OVER
                                      $26,000
OVER $40,000                          $1,946 PLUS 6.85% OF EXCESS OVER
                                      $40,000

S. 2                                3                               A. 2

  S 2. The opening paragraph of paragraph 2 of subsection (a) of section
601 of the tax law, as amended by section 1 of part Z-1 of chapter 57 of
the laws of 2009, is amended to read as follows:
  For  taxable  years  beginning  after two thousand five and before two
thousand nine [and after two thousand eleven]:
  S 3. Paragraph 1 of subsection (b) of section 601 of the  tax  law  is
renumbered to be paragraph 1-a and a new paragraph 1 is added to read as
follows:
  (1)  (A)  FOR  TAXABLE  YEARS  BEGINNING AFTER TWO THOUSAND ELEVEN AND
BEFORE TWO THOUSAND FIFTEEN:

IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:

NOT OVER $12,000                      4% OF TAXABLE INCOME
OVER $12,000 BUT NOT OVER $16,500     $480 PLUS 4.5% OF EXCESS OVER
                                      $12,000
OVER $16,500 BUT NOT OVER $19,500     $683 PLUS 5.25% OF EXCESS OVER
                                      $16,500
OVER $19,500 BUT NOT OVER $30,000     $840 PLUS 5.90% OF EXCESS OVER
                                      $19,500
OVER $30,000 BUT NOT OVER $100,000    $1,460 PLUS 6.45% OF EXCESS OVER
                                      $30,000
OVER $100,000 BUT NOT OVER $250,000   $5,975 PLUS 6.65% OF EXCESS OVER
                                      $100,000
OVER $250,000 BUT NOT OVER $1,500,000 $15,950 PLUS 6.85% OF EXCESS OVER
                                      $250,000
OVER $1,500,000                       $101,575 PLUS 8.82% OF EXCESS OVER
                                      $1,500,000

  (B) FOR TAXABLE YEARS  BEGINNING  AFTER  TWO  THOUSAND  FOURTEEN,  THE
FOLLOWING  BRACKETS  AND DOLLARS AMOUNTS SHALL APPLY, AS ADJUSTED BY THE
COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION  SIX  HUNDRED  ONE-A  OF
THIS PART FOR TAX YEARS TWO THOUSAND THIRTEEN AND TWO THOUSAND FOURTEEN:

IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $12,000                      4% OF TAXABLE INCOME
OVER $12,000 BUT NOT OVER $16,500     $480 PLUS 4.5% OF EXCESS OVER
                                      $12,000
OVER $16,500 BUT NOT OVER $19,500     $683 PLUS 5.25% OF EXCESS OVER
                                      $16,500
OVER $19,500 BUT NOT OVER $30,000     $840 PLUS 5.90% OF EXCESS OVER
                                      $19,500
OVER $30,000                          $1,460 PLUS 6.85% OF EXCESS OVER
                                      $30,000

  S 4. The opening paragraph of paragraph 2 of subsection (b) of section
601 of the tax law, as amended by section 1 of part Z-1 of chapter 57 of
the laws of 2009, is amended to read as follows:
  For  taxable  years  beginning  after two thousand five and before two
thousand nine [and after two thousand eleven]:
  S 5. Paragraph 1 of subsection (c) of section 601 of the  tax  law  is
renumbered to be paragraph 1-a and a new paragraph 1 is added to read as
follows:
  (1)  (A)  FOR  TAXABLE  YEARS  BEGINNING AFTER TWO THOUSAND ELEVEN AND
BEFORE TWO THOUSAND FIFTEEN:

S. 2                                4                               A. 2

IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,000                       4% OF TAXABLE INCOME
OVER $8,000 BUT NOT OVER $11,000      $320 PLUS 4.5% OF EXCESS OVER
                                      $8,000
OVER $11,000 BUT NOT OVER $13,000     $455 PLUS 5.25% OF EXCESS OVER
                                      $11,000
OVER $13,000 BUT NOT OVER $20,000     $560 PLUS 5.90% OF EXCESS OVER
                                      $13,000
OVER $20,000 BUT NOT OVER $75,000     $973 PLUS 6.45% OF EXCESS OVER
                                      $20,000
OVER $75,000 BUT NOT OVER $200,000    $4,521 PLUS 6.65% OF EXCESS OVER
                                      $75,000
OVER $200,000 BUT NOT OVER $1,000,000 $12,833 PLUS 6.85% OF EXCESS OVER
                                      $200,000
OVER $1,000,000                       $67,633 PLUS 8.82% OF EXCESS OVER
                                      $1,000,000

  (B)  FOR  TAXABLE  YEARS  BEGINNING  AFTER  TWO THOUSAND FOURTEEN, THE
FOLLOWING BRACKETS AND DOLLARS AMOUNTS SHALL APPLY, AS ADJUSTED  BY  THE
COST  OF  LIVING  ADJUSTMENT  PRESCRIBED IN SECTION SIX HUNDRED ONE-A OF
THIS PART FOR TAX YEARS TWO THOUSAND THIRTEEN AND TWO THOUSAND FOURTEEN:

IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,000                       4% OF TAXABLE INCOME
OVER $8,000 BUT NOT OVER $11,000      $320 PLUS 4.5% OF EXCESS OVER
                                      $8,000
OVER $11,000 BUT NOT OVER $13,000     $455 PLUS 5.25% OF EXCESS OVER
                                      $11,000
OVER $13,000 BUT NOT OVER $20,000     $560 PLUS 5.90% OF EXCESS OVER
                                      $13,000
OVER $20,000                          $973 PLUS 6.85% OF EXCESS OVER
                                      $20,000

  S 6. The opening paragraph of paragraph 2 of subsection (c) of section
601 of the tax law, as amended by section 1 of part Z-1 of chapter 57 of
the laws of 2009, is amended to read as follows:
  For taxable years beginning after two thousand  five  and  before  two
thousand nine [and after two thousand eleven]:
  S  7. Section 601 of the tax law is amended by adding a new subsection
(d-1) to read as follows:
  (D-1) ALTERNATIVE TAX TABLE  BENEFIT  RECAPTURE.  NOTWITHSTANDING  THE
PROVISIONS  OF  SUBSECTION (D) OF THIS SECTION, FOR TAXABLE YEARS BEGIN-
NING AFTER TWO THOUSAND ELEVEN AND BEFORE TWO THOUSAND FIFTEEN, THERE IS
HEREBY IMPOSED A SUPPLEMENTAL TAX IN ADDITION TO THE TAX  IMPOSED  UNDER
SUBSECTIONS  (A),  (B) AND (C) OF THIS SECTION FOR THE PURPOSE OF RECAP-
TURING THE BENEFIT OF THE TAX  TABLES  CONTAINED  IN  SUCH  SUBSECTIONS.
DURING  THESE TAXABLE YEARS, ANY REFERENCE IN THIS CHAPTER TO SUBSECTION
(D) OF THIS SECTION SHALL BE READ AS A REFERENCE TO THIS SUBSECTION.
  (1) FOR RESIDENT MARRIED INDIVIDUALS FILING JOINT RETURNS AND RESIDENT
SURVIVING SPOUSES, THE SUPPLEMENTAL TAX SHALL BE AN AMOUNT EQUAL TO  THE
SUM  OF  THE TAX TABLE BENEFITS DESCRIBED IN SUBPARAGRAPHS (A), (B), (C)
AND (D) OF THIS PARAGRAPH MULTIPLIED BY THEIR  RESPECTIVE  FRACTIONS  IN
SUCH SUBPARAGRAPHS.
  (A)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
(A) OF THIS SECTION NOT SUBJECT TO THE 6.45 PERCENT RATE OF TAX FOR  THE

S. 2                                5                               A. 2

TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
FOR  SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE
TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS  SECTION.
THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR
IS  THE  LESSER  OF  FIFTY  THOUSAND  DOLLARS  OR THE EXCESS OF NEW YORK
ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR  OVER  ONE  HUNDRED  THOUSAND
DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.
  (B)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
(A) OF THIS SECTION NOT SUBJECT TO THE 6.65 PERCENT RATE OF TAX FOR  THE
TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
FOR  SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE
TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF  THIS  SECTION
LESS  THE  TAX  TABLE BENEFIT IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. THE
FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS:  THE NUMERATOR IS
THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK  ADJUSTED
GROSS  INCOME  FOR  THE  TAXABLE  YEAR  OVER  ONE HUNDRED FIFTY THOUSAND
DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. PROVIDED,  HOWEV-
ER,  THIS  SUBPARAGRAPH SHALL NOT APPLY TO TAXPAYERS WHO ARE NOT SUBJECT
TO THE 6.65 PERCENT TAX RATE.
  (C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
(A)  OF THIS SECTION NOT SUBJECT TO THE 6.85 PERCENT RATE OF TAX FOR THE
TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE  APPLICABLE
TO  THE  TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION
LESS THE SUM OF THE TAX TABLE BENEFIT IN SUBPARAGRAPHS (A)  AND  (B)  OF
THIS  PARAGRAPH.  THE  FRACTION  FOR  THIS  SUBPARAGRAPH  IS COMPUTED AS
FOLLOWS:  THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS  OR  THE
EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER THREE
HUNDRED  THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.
PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL NOT APPLY  TO  TAXPAYERS  WHO
ARE NOT SUBJECT TO THE 6.85 PERCENT TAX RATE.
  (D)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
(A) OF THIS SECTION NOT SUBJECT TO THE 8.82 PERCENT RATE OF TAX FOR  THE
TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
FOR  SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE
TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF  THIS  SECTION
LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B) AND (C)
OF  THIS  PARAGRAPH.  THE  FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS
FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND  DOLLARS  OR  THE
EXCESS  OF  NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER TWO
MILLION DOLLARS AND THE DENOMINATOR  IS  FIFTY  THOUSAND  DOLLARS.  THIS
SUBPARAGRAPH  SHALL  APPLY  ONLY  TO TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWELVE AND BEFORE JANUARY FIRST,  TWO  THOU-
SAND FIFTEEN.
  (E)  PROVIDED,  HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY
TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET  FORTH  IN  THE
TAX  TABLES  IN SUBSECTION (A) OF THIS SECTION MULTIPLIED BY THE TAXPAY-
ER'S TAXABLE INCOME.
  (2) FOR RESIDENT HEADS OF HOUSEHOLDS, THE SUPPLEMENTAL TAX SHALL BE AN
AMOUNT EQUAL TO THE SUM OF THE TAX TABLE BENEFITS DESCRIBED IN  SUBPARA-
GRAPHS (A), (B) AND (C) OF THIS PARAGRAPH MULTIPLIED BY THEIR RESPECTIVE
FRACTIONS IN SUCH SUBPARAGRAPHS.

S. 2                                6                               A. 2

  (A)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
(B) OF THIS SECTION NOT SUBJECT TO THE 6.65 PERCENT RATE OF TAX FOR  THE
TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
FOR  SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE
TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS  SECTION.
THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR
IS  THE  LESSER  OF  FIFTY  THOUSAND  DOLLARS  OR THE EXCESS OF NEW YORK
ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR  OVER  ONE  HUNDRED  THOUSAND
DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.
  (B)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
(B) OF THIS SECTION NOT SUBJECT TO THE 6.85 PERCENT RATE OF TAX FOR  THE
TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
FOR  SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE
TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF  THIS  SECTION
LESS  THE  TAX  TABLE BENEFIT IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. THE
FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS:  THE NUMERATOR IS
THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK  ADJUSTED
GROSS  INCOME  FOR  THE  TAXABLE  YEAR  OVER  TWO HUNDRED FIFTY THOUSAND
DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. PROVIDED,  HOWEV-
ER,  THIS  SUBPARAGRAPH SHALL NOT APPLY TO TAXPAYERS WHO ARE NOT SUBJECT
TO THE 6.85 PERCENT TAX RATE.
  (C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
(B)  OF THIS SECTION NOT SUBJECT TO THE 8.82 PERCENT RATE OF TAX FOR THE
TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE  APPLICABLE
TO  THE  TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION
LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND  (B)  OF
THIS  PARAGRAPH.  THE  FRACTION  FOR  THIS  SUBPARAGRAPH  IS COMPUTED AS
FOLLOWS:  THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS  OR  THE
EXCESS  OF  NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE
MILLION FIVE HUNDRED THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOU-
SAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY ONLY TO TAXABLE YEARS BEGIN-
NING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE AND  BEFORE  JANUARY
FIRST, TWO THOUSAND FIFTEEN.
  (D)  PROVIDED,  HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY
TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET  FORTH  IN  THE
TAX  TABLES  IN SUBSECTION (B) OF THIS SECTION MULTIPLIED BY THE TAXPAY-
ER'S TAXABLE INCOME.
  (3) FOR RESIDENT UNMARRIED INDIVIDUALS, RESIDENT  MARRIED  INDIVIDUALS
FILING  SEPARATE  RETURNS  AND  RESIDENT ESTATES AND TRUSTS, THE SUPPLE-
MENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE SUM OF THE TAX TABLE BENEFITS
DESCRIBED IN SUBPARAGRAPHS (A), (B) AND (C) OF THIS PARAGRAPH MULTIPLIED
BY THEIR RESPECTIVE FRACTIONS IN SUCH SUBPARAGRAPHS.
  (A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
(C)  OF THIS SECTION NOT SUBJECT TO THE 6.65 PERCENT RATE OF TAX FOR THE
TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE  APPLICABLE
TO  THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION.
THE FRACTION IS COMPUTED AS FOLLOWS: THE  NUMERATOR  IS  THE  LESSER  OF
FIFTY  THOUSAND  DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME
FOR THE TAXABLE YEAR OVER ONE HUNDRED THOUSAND DOLLARS AND THE DENOMINA-
TOR IS FIFTY THOUSAND DOLLARS.

S. 2                                7                               A. 2

  (B) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
(C)  OF THIS SECTION NOT SUBJECT TO THE 6.85 PERCENT RATE OF TAX FOR THE
TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
FOR  SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE
TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF  THIS  SECTION
LESS  THE  TAX  TABLE BENEFIT IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. THE
FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS:  THE NUMERATOR IS
THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK  ADJUSTED
GROSS  INCOME FOR THE TAXABLE YEAR OVER TWO HUNDRED THOUSAND DOLLARS AND
THE DENOMINATOR IS  FIFTY  THOUSAND  DOLLARS.  PROVIDED,  HOWEVER,  THIS
SUBPARAGRAPH  SHALL  NOT  APPLY  TO TAXPAYERS WHO ARE NOT SUBJECT TO THE
6.85 PERCENT TAX RATE.
  (C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
(C)  OF THIS SECTION NOT SUBJECT TO THE 8.82 PERCENT RATE OF TAX FOR THE
TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE  APPLICABLE
TO  THE  TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION
LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND  (B)  OF
THIS  PARAGRAPH.  THE  FRACTION  FOR  THIS  SUBPARAGRAPH  IS COMPUTED AS
FOLLOWS:  THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS  OR  THE
EXCESS  OF  NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE
MILLION DOLLARS AND THE DENOMINATOR  IS  FIFTY  THOUSAND  DOLLARS.  THIS
SUBPARAGRAPH  SHALL  APPLY  ONLY  TO TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWELVE AND BEFORE JANUARY FIRST,  TWO  THOU-
SAND FIFTEEN.
  (D)  PROVIDED,  HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY
TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET  FORTH  IN  THE
TAX  TABLES  IN SUBSECTION (C) OF THIS SECTION MULTIPLIED BY THE TAXPAY-
ER'S TAXABLE INCOME.
  S 8. Section 601 of the tax law is amended by adding a new  subsection
(d-2) to read as follows:
  (D-2)  TAX  TABLE  BENEFIT  RECAPTURE FOR TAX YEARS AFTER TWO THOUSAND
FOURTEEN. FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN, THERE
IS HEREBY IMPOSED A SUPPLEMENTAL TAX IN  ADDITION  TO  THE  TAX  IMPOSED
UNDER  SUBSECTIONS  (A),  (B) AND (C) OF THIS SECTION FOR THE PURPOSE OF
RECAPTURING THE BENEFIT OF THE TAX TABLES CONTAINED IN SUCH SUBSECTIONS.
THE SUPPLEMENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE  TABLE  BENEFIT  IN
PARAGRAPH  ONE  OF  THIS  SUBSECTION  MULTIPLIED BY THE FRACTION IN SUCH
PARAGRAPH. ANY REFERENCE IN THIS  CHAPTER  TO  SUBSECTION  (D)  OF  THIS
SECTION SHALL BE READ AS A REFERENCE TO THIS SUBSECTION.
  (1)  RESIDENT  MARRIED  INDIVIDUALS  FILING  JOINT  RETURNS,  RESIDENT
SURVIVING SPOUSES, RESIDENT  HEADS  OF  HOUSEHOLDS,  RESIDENT  UNMARRIED
INDIVIDUALS,  RESIDENT  MARRIED  INDIVIDUALS FILING SEPARATE RETURNS AND
RESIDENT ESTATES AND TRUSTS.
  (A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN SUBSECTION (A), (B) OR (C),
OF  THIS  SECTION,  NOT  SUBJECT TO THE 6.85 PERCENT RATE OF TAX FOR THE
TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE  APPLICABLE
TO THE TAXABLE YEAR IN SUBSECTION (A), (B) OR (C) OF THIS SECTION.
  (B)  THE  FRACTION IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER
OF FIFTY THOUSAND DOLLARS OR THE  EXCESS  OF  NEW  YORK  ADJUSTED  GROSS
INCOME  FOR  THE TAXABLE YEAR OVER ONE HUNDRED THOUSAND DOLLARS (AS SUCH
AMOUNT IS ADJUSTED BY  THE  COST  OF  LIVING  ADJUSTMENT  PRESCRIBED  IN

S. 2                                8                               A. 2

SECTION  SIX HUNDRED ONE-A OF THIS PART FOR TAX YEARS TWO THOUSAND THIR-
TEEN AND TWO THOUSAND FOURTEEN) AND THE DENOMINATOR  IS  FIFTY  THOUSAND
DOLLARS.
  S  9.  The tax law is amended by adding a new section 601-a to read as
follows:
  S 601-A. COST OF LIVING ADJUSTMENT. (A)  FOR  TAX  YEAR  TWO  THOUSAND
THIRTEEN, THE COMMISSIONER, NOT LATER THAN SEPTEMBER FIRST, TWO THOUSAND
TWELVE,  SHALL  MULTIPLY THE AMOUNTS SPECIFIED IN SUBSECTION (B) OF THIS
SECTION FOR TAX YEAR TWO THOUSAND TWELVE BY ONE PLUS THE COST OF  LIVING
ADJUSTMENT DESCRIBED IN SUBSECTION (C) OF THIS SECTION. FOR TAX YEAR TWO
THOUSAND FOURTEEN, THE COMMISSIONER, NOT LATER THAN SEPTEMBER FIRST, TWO
THOUSAND  THIRTEEN,  SHALL  MULTIPLY THE AMOUNTS SPECIFIED IN SUBSECTION
(B) OF THIS SECTION FOR TAX YEAR TWO THOUSAND THIRTEEN BY ONE  PLUS  THE
COST OF LIVING ADJUSTMENT.
  (B)  THE  FOLLOWING  AMOUNTS  SHALL  BE  INDEXED BY THE COST OF LIVING
ADJUSTMENT.
  (1) THE DOLLAR AMOUNTS IN THE TAX TABLES SET FORTH IN PARAGRAPH ONE OF
SUBSECTION (A), PARAGRAPH ONE OF SUBSECTION (B)  AND  PARAGRAPH  ONE  OF
SUBSECTION (C) OF SECTION SIX HUNDRED ONE OF THIS PART.
  (2)  THE DOLLAR AMOUNT IN THE NUMERATOR OF THE FRACTIONS IN SUBSECTION
(D) OF SECTION SIX HUNDRED ONE OF THIS PART THAT IS NOT  FIFTY  THOUSAND
DOLLARS.
  (3)  THE  NEW  YORK  STANDARD  DEDUCTION  OF  A RESIDENT INDIVIDUAL IN
SECTION SIX HUNDRED FOURTEEN OF THIS ARTICLE.
  (C) THE COST OF LIVING ADJUSTMENT FOR A TAX YEAR IS THE PERCENTAGE  IF
ANY,  BY WHICH THE AVERAGE MONTHLY VALUE OF THE CONSUMER PRICE INDEX FOR
THE TWELVE MONTH PERIOD ENDING ON JUNE THIRTIETH OF THE YEAR IMMEDIATELY
PRECEDING THE TAX YEAR FOR WHICH THE ADJUSTMENT IS BEING MADE  (REFERRED
TO  AS  THE  ADJUSTMENT  YEAR)  EXCEEDS THE AVERAGE MONTHLY VALUE OF THE
CONSUMER PRICE INDEX FOR THE TWELVE MONTH PERIOD ENDING ON JUNE  THIRTI-
ETH OF THE YEAR IMMEDIATELY PRECEDING THE ADJUSTMENT YEAR.  FOR PURPOSES
OF THIS SECTION, THE CONSUMER PRICE INDEX MEANS THE CONSUMER PRICE INDEX
FOR  ALL  URBAN  CONSUMERS  PUBLISHED BY THE UNITED STATES DEPARTMENT OF
LABOR.
  (D) IF THE PRODUCT OF THE AMOUNTS IN SUBSECTION (B) AND SUBSECTION (C)
OF THIS SECTION IS NOT A MULTIPLE OF FIFTY DOLLARS, SUCH INCREASE  SHALL
BE ROUNDED TO THE NEXT LOWEST MULTIPLE OF FIFTY DOLLARS.
  S 10. Section 614 of the tax law is amended by adding a new subsection
(f) to read as follows:
  (F) ADJUSTED STANDARD DEDUCTION. FOR TAXABLE YEARS BEGINNING AFTER TWO
THOUSAND  FOURTEEN,  THE  STANDARD  DEDUCTIONS SET FORTH IN THIS SECTION
SHALL BE ADJUSTED BY THE COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION
SIX HUNDRED ONE-A OF THIS PART FOR TAX YEARS TWO THOUSAND  THIRTEEN  AND
TWO THOUSAND FOURTEEN.
  S 11. Notwithstanding any provision of law to the contrary, the method
of  determining  the  amount  to  be deducted and withheld from wages on
account of taxes imposed by or pursuant to the authority of  article  22
of  the  tax law in connection with the implementation of the provisions
of this act shall be prescribed by regulations of  the  commissioner  of
taxation and finance with due consideration to the effect such withhold-
ing  tables and methods would have on the receipt and amount of revenue.
The commissioner of taxation and finance shall adjust  such  withholding
tables  and  methods  in  regard  to taxable years beginning in 2012 and
after in such manner as to result, so far as practicable, in withholding
from an employee's wages an amount substantially equivalent to  the  tax
reasonably estimated to be due for such taxable years as a result of the

S. 2                                9                               A. 2

provisions  of  this  act. Any such regulations to implement a change in
withholding tables and methods for tax year 2012 shall  be  adopted  and
effective  as  soon  as practicable and the commissioner of taxation and
finance may adopt such regulations on an emergency basis notwithstanding
anything  to  the  contrary  in  section 202 of the state administrative
procedure act. The commissioner of taxation and finance, in carrying out
the duties and responsibilities under this section, may accompany such a
rule making procedure with a similar procedure with respect to the taxes
required to be deducted and withheld by local laws imposing taxes pursu-
ant to the authority of articles 30, 30-A and 30-B of the tax  law,  the
provisions  of  any  other  law  in  relation to such a procedure to the
contrary notwithstanding. The withholding tables  and  methods  for  tax
years 2013 and 2014 shall not be prescribed by regulation, notwithstand-
ing  any  provision  of  the  state  administrative procedure act to the
contrary.
  S 12. This act shall take effect immediately.

                                 PART B

  Section 1. Subsection (b) of section 800 of the tax law, as  added  by
section  1  of  part  C of chapter 25 of the laws of 2009, is amended to
read as follows:
  (b) Employer. Employer means  an  employer  required  by  section  six
hundred  seventy-one  of  this  chapter  to deduct and withhold tax from
wages, that has a payroll expense  in  excess  of  [two]  THREE  HUNDRED
TWELVE thousand five hundred dollars in any calendar quarter; other than
  (1) any agency or instrumentality of the United States;
  (2) the United Nations; [or]
  (3)  an interstate agency or public corporation created pursuant to an
agreement or compact with another state or the Dominion of Canada[.]; OR
  (4) ANY ELIGIBLE EDUCATIONAL  INSTITUTION.  AN  "ELIGIBLE  EDUCATIONAL
INSTITUTION"  SHALL  MEAN ANY PUBLIC SCHOOL DISTRICT, A BOARD OF COOPER-
ATIVE EDUCATIONAL SERVICES, A PUBLIC ELEMENTARY OR SECONDARY  SCHOOL,  A
SCHOOL  APPROVED  PURSUANT  TO ARTICLE EIGHTY-FIVE OR EIGHTY-NINE OF THE
EDUCATION LAW TO SERVE STUDENTS WITH DISABILITIES OF SCHOOL  AGE,  OR  A
NONPUBLIC  ELEMENTARY  OR  SECONDARY SCHOOL THAT PROVIDES INSTRUCTION IN
GRADE ONE OR ABOVE.
  S 2. Subsection (a) of section 801 of the tax law, as added by section
1 of part C of chapter 25 of the laws of 2009, is  amended  to  read  as
follows:
  (a)  For  the sole purpose of providing an additional stable and reli-
able  dedicated  funding  source  for  the  metropolitan  transportation
authority  and  its subsidiaries and affiliates to preserve, operate and
improve essential transit and transportation services in  the  metropol-
itan  commuter  transportation  district,  a tax is hereby imposed [at a
rate of thirty-four hundredths (.34) percent of (1) the payroll  expense
of every employer who engages] ON EMPLOYERS WHO ENGAGE in business with-
in  the  MCTD  (1)  AT A RATE OF (A) ELEVEN HUNDREDTHS (.11) PERCENT FOR
EMPLOYERS  WITH  PAYROLL  EXPENSE  NO   GREATER   THAN   THREE   HUNDRED
SEVENTY-FIVE  THOUSAND DOLLARS IN ANY CALENDAR QUARTER, (B) TWENTY-THREE
HUNDREDTHS (.23) PERCENT FOR EMPLOYERS WITH PAYROLL EXPENSE GREATER THAN
THREE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS AND  NO  GREATER  THAN  FOUR
HUNDRED THIRTY-SEVEN THOUSAND FIVE HUNDRED DOLLARS IN ANY CALENDAR QUAR-
TER,  AND  (C)  THIRTY-FOUR  HUNDREDTHS (.34) PERCENT FOR EMPLOYERS WITH
PAYROLL EXPENSE IN EXCESS OF FOUR  HUNDRED  THIRTY-SEVEN  THOUSAND  FIVE
HUNDRED  DOLLARS  IN  ANY  CALENDAR  QUARTER,  and  (2)  AT  A  RATE  OF

S. 2                               10                               A. 2

THIRTY-FOUR HUNDREDTHS (.34) PERCENT OF the net earnings  from  self-em-
ployment  of individuals that are attributable to the MCTD if such earn-
ings attributable to the MCTD exceed [ten] FIFTY  thousand  dollars  for
the tax year.
  S  3.  Any reductions in transit aid attributable to reductions in the
metropolitan commuter transportation mobility tax authorized under arti-
cle 23 of the tax law shall be offset through alternative  sources  that
will be included in the state budget.
  S  4.  This  act shall take effect immediately; provided however, that
section one of this act and the amendments in section two  of  this  act
that  concern  employers  shall take effect for the quarter beginning on
April 1, 2012.

                                 PART C

  Section 1. Subparagraph (vi) of paragraph  (a)  of  subdivision  1  of
section  210  of the tax law, as added by section 2 of part N of chapter
60 of the laws of 2007, is amended to read as follows:
  (vi) for taxable years beginning on or after January thirty-first, two
thousand seven, the amount prescribed by this paragraph for  a  taxpayer
which  is  a  qualified  New York manufacturer, shall be computed at the
rate of six and one-half (6.5) percent  of  the  taxpayer's  entire  net
income  base. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWELVE AND BEFORE JANUARY  FIRST,  TWO  THOUSAND  FIFTEEN,  THE
AMOUNT  PRESCRIBED BY THIS PARAGRAPH FOR A TAXPAYER WHICH IS AN ELIGIBLE
QUALIFIED NEW YORK MANUFACTURER SHALL BE COMPUTED AT THE RATE  OF  THREE
AND ONE-QUARTER (3.25) PERCENT OF THE TAXPAYER'S ENTIRE NET INCOME BASE.
The  term  "manufacturer" shall mean a taxpayer which during the taxable
year is principally engaged in the production of goods by manufacturing,
processing, assembling, refining, mining, extracting, farming,  agricul-
ture,  horticulture,  floriculture,  viticulture  or commercial fishing.
However, the generation and distribution of  electricity,  the  distrib-
ution  of  natural  gas, and the production of steam associated with the
generation of electricity shall  not  be  qualifying  activities  for  a
manufacturer  under  this  subparagraph.    Moreover, the combined group
shall be considered a "manufacturer" for purposes of  this  subparagraph
only  if  the  combined  group  during  the  taxable year is principally
engaged in the activities set forth in this paragraph, or  any  combina-
tion  thereof.  A  taxpayer  or  a  combined group shall be "principally
engaged" in activities described above if, during the taxable year, more
than fifty percent of the gross receipts of  the  taxpayer  or  combined
group,  respectively,  are  derived from receipts from the sale of goods
produced by such activities.  In  computing  a  combined  group's  gross
receipts,  intercorporate receipts shall be eliminated. A "qualified New
York manufacturer" is a manufacturer which  has  property  in  New  York
which is described in clause (A) of subparagraph (i) of paragraph (b) of
subdivision  twelve of this section and either (I) the adjusted basis of
such property for federal income tax purposes at the close of the  taxa-
ble  year  is  at  least one million dollars or (II) all of its real and
personal property is located in New York. In addition, a "qualified  New
York  manufacturer"  means  a  taxpayer  which is defined as a qualified
emerging technology company under paragraph (c) of  subdivision  one  of
section  thirty-one  hundred two-e of the public authorities law regard-
less of the ten million dollar limitation expressed in subparagraph  one
of  such paragraph (c).  THE COMMISSIONER SHALL ESTABLISH GUIDELINES AND
CRITERIA THAT SPECIFY REQUIREMENTS BY WHICH A MANUFACTURER MAY BE  CLAS-

S. 2                               11                               A. 2

SIFIED  AS  AN  ELIGIBLE  QUALIFIED  NEW YORK MANUFACTURER. CRITERIA MAY
INCLUDE BUT NOT BE LIMITED TO FACTORS SUCH AS REGIONAL UNEMPLOYMENT, THE
ECONOMIC IMPACT THAT MANUFACTURING HAS  ON  THE  SURROUNDING  COMMUNITY,
POPULATION DECLINE WITHIN THE REGION AND MEDIAN INCOME WITHIN THE REGION
IN  WHICH  THE MANUFACTURER IS LOCATED. IN ESTABLISHING THESE GUIDELINES
AND CRITERIA, THE COMMISSIONER SHALL ENDEAVOR THAT THE TOTAL ANNUAL COST
OF THE LOWER RATES SHALL NOT EXCEED TWENTY-FIVE MILLION DOLLARS.
  S 2.  Subparagraph (ii) of paragraph (c) of subdivision 1  of  section
210  of  the tax law, as amended by section 5 of part N of chapter 60 of
the laws of 2007, is amended to read as follows:
  (ii) [For taxable years beginning in nineteen hundred ninety, nineteen
hundred ninety-one, nineteen hundred ninety-two, nineteen hundred  nine-
ty-three  and nineteen hundred ninety-four the amount prescribed by this
paragraph shall be computed at the rate of five percent of  the  taxpay-
er's  minimum  taxable  income  base.  For taxable years beginning after
nineteen hundred ninety-four and before  July  first,  nineteen  hundred
ninety-eight,  the amount prescribed by this paragraph shall be computed
at the rate of three and one-half  percent  of  the  taxpayer's  minimum
taxable  income  base. For taxable years beginning after June thirtieth,
nineteen hundred ninety-eight and before July  first,  nineteen  hundred
ninety-nine,  the  amount prescribed by this paragraph shall be computed
at the rate of three and one-quarter percent of the  taxpayer's  minimum
taxable  income  base. For taxable years beginning after June thirtieth,
nineteen hundred ninety-nine and before July first,  two  thousand,  the
amount  prescribed  by  this  paragraph shall be computed at the rate of
three percent of the taxpayer's minimum taxable income base.  For  taxa-
ble  years  beginning  after  June  thirtieth,  two thousand, the amount
prescribed by this paragraph shall be computed at the rate  of  two  and
one-half percent of the taxpayer's minimum taxable income base.] (A) For
taxable  years  beginning on or after January first, two thousand seven,
THE amount prescribed by this paragraph shall be computed at the rate of
one and one-half percent of the taxpayer's minimum taxable income  base.
The  "taxpayer's  minimum taxable income base" shall mean the portion of
the taxpayer's minimum taxable income  allocated  within  the  state  as
hereinafter  provided,  subject  to  any modifications required by para-
graphs (d) and (e) of subdivision three of this section.
  (B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOU-
SAND  TWELVE  AND BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, THE AMOUNT
PRESCRIBED BY THIS PARAGRAPH FOR AN ELIGIBLE QUALIFIED NEW YORK MANUFAC-
TURER SHALL BE COMPUTED AT THE RATE  OF  SEVENTY-FIVE  HUNDREDTHS  (.75)
PERCENT  OF  THE TAXPAYER'S MINIMUM TAXABLE INCOME BASE. FOR PURPOSES OF
THIS CLAUSE, THE TERM "ELIGIBLE QUALIFIED NEW YORK  MANUFACTURER"  SHALL
HAVE  THE  SAME MEANING AS IN SUBPARAGRAPH (VI) OF PARAGRAPH (A) OF THIS
SUBDIVISION.
  S 3. Paragraph (d) of subdivision 1 of section 210 of the tax  law  is
amended by adding a new subparagraph 5 to read as follows:
  (5)  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWELVE AND BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, THE  AMOUNTS
PRESCRIBED  IN SUBPARAGRAPHS ONE AND FOUR OF THIS PARAGRAPH AS THE FIXED
DOLLAR MINIMUM TAX FOR AN ELIGIBLE QUALIFIED NEW YORK MANUFACTURER SHALL
BE ONE-HALF OF THE AMOUNTS STATED IN THOSE SUBPARAGRAPHS.  FOR  PURPOSES
OF  THIS SUBPARAGRAPH, THE TERM "ELIGIBLE QUALIFIED NEW YORK MANUFACTUR-
ER" SHALL HAVE THE SAME MEANING AS IN SUBPARAGRAPH (VI) OF PARAGRAPH (A)
OF THIS SUBDIVISION.
  S 4. This act shall take effect immediately.

S. 2                               12                               A. 2

                                 PART D

  Section  1.  The  labor law is amended by adding a new section 25-a to
read as follows:
  S 25-A. POWER TO ADMINISTER  THE  NEW  YORK  YOUTH  WORKS  TAX  CREDIT
PROGRAM.  (A) THE COMMISSIONER IS AUTHORIZED TO ESTABLISH AND ADMINISTER
THE NEW YORK YOUTH WORKS TAX CREDIT PROGRAM TO PROVIDE TAX INCENTIVES TO
EMPLOYERS FOR EMPLOYING AT RISK YOUTH IN PART-TIME AND  FULL-TIME  POSI-
TIONS IN TWO THOUSAND TWELVE AND TWO THOUSAND THIRTEEN. THE COMMISSIONER
IS AUTHORIZED TO ALLOCATE UP TO TWENTY-FIVE MILLION DOLLARS OF TAX CRED-
ITS UNDER THIS PROGRAM.
  (B)  DEFINITIONS.  (1) THE TERM "QUALIFIED EMPLOYER" MEANS AN EMPLOYER
THAT HAS BEEN CERTIFIED BY THE COMMISSIONER TO PARTICIPATE  IN  THE  NEW
YORK  YOUTH WORKS TAX CREDIT PROGRAM AND THAT EMPLOYS ONE OR MORE QUALI-
FIED EMPLOYEES.
  (2) THE TERM "QUALIFIED EMPLOYEE" MEANS AN INDIVIDUAL:
  (I) WHO IS BETWEEN THE AGE OF SIXTEEN AND TWENTY-FOUR;
  (II) WHO RESIDES IN A CITY WITH A POPULATION OF SIXTY-TWO THOUSAND  OR
MORE  OR  A  TOWN  WITH  A POPULATION OF FOUR HUNDRED EIGHTY THOUSAND OR
MORE;
  (III) WHO IS LOW-INCOME OR AT-RISK, AS THOSE TERMS ARE DEFINED BY  THE
COMMISSIONER;
  (IV) WHO IS UNEMPLOYED PRIOR TO BEING HIRED BY THE QUALIFIED EMPLOYER;
AND
  (V)  WHO  WILL BE WORKING FOR THE QUALIFIED EMPLOYER IN A FULL-TIME OR
PART-TIME POSITION THAT PAYS WAGES THAT ARE EQUIVALENT TO THE WAGES PAID
FOR SIMILAR JOBS, WITH APPROPRIATE ADJUSTMENTS FOR EXPERIENCE AND TRAIN-
ING, AND FOR WHICH NO OTHER EMPLOYEE HAS BEEN TERMINATED, OR  WHERE  THE
EMPLOYER  HAS  NOT OTHERWISE REDUCED ITS WORKFORCE BY INVOLUNTARY TERMI-
NATIONS WITH THE INTENTION OF FILLING THE  VACANCY  BY  CREATING  A  NEW
HIRE.
  (C)  A  QUALIFIED  EMPLOYER SHALL BE ENTITLED TO A TAX CREDIT EQUAL TO
(1) FIVE HUNDRED DOLLARS PER MONTH FOR UP TO SIX MONTHS FOR EACH  QUALI-
FIED  EMPLOYEE  THE  EMPLOYER  EMPLOYS IN A FULL-TIME JOB OR TWO HUNDRED
FIFTY DOLLARS PER MONTH FOR UP TO SIX MONTHS FOR EACH QUALIFIED EMPLOYEE
THE EMPLOYER EMPLOYS IN A PART-TIME JOB OF AT  LEAST  TWENTY  HOURS  PER
WEEK,  AND  (2)  ONE THOUSAND DOLLARS FOR EACH QUALIFIED EMPLOYEE WHO IS
EMPLOYED FOR AT LEAST AN ADDITIONAL SIX MONTHS BY THE QUALIFIED EMPLOYER
IN A FULL-TIME JOB OR FIVE HUNDRED DOLLARS FOR EACH  QUALIFIED  EMPLOYEE
WHO  IS  EMPLOYED FOR AT LEAST AN ADDITIONAL SIX MONTHS BY THE QUALIFIED
EMPLOYER IN A PART-TIME JOB OF AT LEAST TWENTY HOURS PER WEEK.  THE  TAX
CREDITS  SHALL  BE  CLAIMED  BY  THE  QUALIFIED EMPLOYER AS SPECIFIED IN
SUBDIVISION FORTY-FOUR OF SECTION TWO HUNDRED TEN AND SUBSECTION (TT) OF
SECTION SIX HUNDRED SIX OF THE TAX LAW.
  (D) TO PARTICIPATE IN THE NEW YORK YOUTH WORKS TAX CREDIT PROGRAM,  AN
EMPLOYER MUST SUBMIT AN APPLICATION (IN A FORM PRESCRIBED BY THE COMMIS-
SIONER) TO THE COMMISSIONER AFTER JANUARY FIRST, TWO THOUSAND TWELVE BUT
NO  LATER THAN JUNE FIRST, TWO THOUSAND TWELVE.  THE QUALIFIED EMPLOYEES
MUST START THEIR EMPLOYMENT ON OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND
TWELVE  BUT  NO LATER THAN JULY FIRST, TWO THOUSAND TWELVE.  THE COMMIS-
SIONER SHALL ESTABLISH GUIDELINES AND CRITERIA THAT SPECIFY REQUIREMENTS
FOR EMPLOYERS TO PARTICIPATE  IN  THE  PROGRAM  INCLUDING  CRITERIA  FOR
CERTIFYING  QUALIFIED  EMPLOYEES.  ANY REGULATIONS THAT THE COMMISSIONER
DETERMINES ARE NECESSARY MAY BE ADOPTED ON AN EMERGENCY  BASIS  NOTWITH-
STANDING  ANYTHING  TO  THE  CONTRARY  IN SECTION TWO HUNDRED TWO OF THE
STATE ADMINISTRATIVE PROCEDURE ACT. SUCH REQUIREMENTS  MAY  INCLUDE  THE

S. 2                               13                               A. 2

TYPES  OF INDUSTRIES THAT THE EMPLOYERS ARE ENGAGED IN. THE COMMISSIONER
MAY GIVE PREFERENCE TO EMPLOYERS THAT ARE ENGAGED IN DEMAND  OCCUPATIONS
OR INDUSTRIES, OR IN REGIONAL GROWTH SECTORS, INCLUDING THOSE IDENTIFIED
BY  THE  REGIONAL  ECONOMIC  DEVELOPMENT COUNCILS, SUCH AS CLEAN ENERGY,
HEALTHCARE, ADVANCED MANUFACTURING AND CONSERVATION.  IN  ADDITION,  THE
COMMISSIONER  SHALL  GIVE  PREFERENCE TO EMPLOYERS WHO OFFER ADVANCEMENT
AND EMPLOYEE BENEFIT PACKAGES TO THE QUALIFIED INDIVIDUALS.
  (E) IF, AFTER REVIEWING THE APPLICATION SUBMITTED BY AN EMPLOYER,  THE
COMMISSIONER DETERMINES THAT SUCH EMPLOYER IS ELIGIBLE TO PARTICIPATE IN
THE  NEW  YORK  YOUTH  WORKS  TAX CREDIT PROGRAM, THE COMMISSIONER SHALL
ISSUE THE EMPLOYER A CERTIFICATE OF  ELIGIBILITY  THAT  ESTABLISHES  THE
EMPLOYER  AS  A QUALIFIED EMPLOYER. THE CERTIFICATE OF ELIGIBILITY SHALL
SPECIFY THE MAXIMUM AMOUNT OF NEW YORK YOUTH WORKS TAX CREDIT  THAT  THE
EMPLOYER WILL BE ALLOWED TO CLAIM.
  S 2. Section 210 of the tax law is amended by adding a new subdivision
44 to read as follows:
  44.  NEW  YORK  YOUTH  WORKS  TAX CREDIT. (A) A TAXPAYER THAT HAS BEEN
CERTIFIED BY THE COMMISSIONER OF LABOR AS A QUALIFIED EMPLOYER  PURSUANT
TO  SECTION  TWENTY-FIVE-A  OF  THE  LABOR LAW SHALL BE ALLOWED A CREDIT
AGAINST THE TAX IMPOSED BY  THIS  ARTICLE  EQUAL  TO  (I)  FIVE  HUNDRED
DOLLARS  PER  MONTH FOR UP TO SIX MONTHS FOR EACH QUALIFIED EMPLOYEE THE
EMPLOYER EMPLOYS IN A FULL-TIME JOB OR TWO  HUNDRED  FIFTY  DOLLARS  PER
MONTH  FOR  UP  TO  SIX  MONTHS FOR EACH QUALIFIED EMPLOYEE THE EMPLOYER
EMPLOYS IN A PART-TIME JOB OF AT LEAST TWENTY HOURS PER WEEK,  AND  (II)
ONE  THOUSAND DOLLARS FOR EACH QUALIFIED EMPLOYEE WHO IS EMPLOYED FOR AT
LEAST AN ADDITIONAL SIX MONTHS BY THE QUALIFIED EMPLOYER IN A  FULL-TIME
JOB  OR FIVE HUNDRED DOLLARS FOR EACH QUALIFIED EMPLOYEE WHO IS EMPLOYED
FOR AT LEAST AN ADDITIONAL SIX MONTHS BY THE  QUALIFIED  EMPLOYER  IN  A
PART-TIME  JOB  OF  AT LEAST TWENTY HOURS PER WEEK. FOR PURPOSES OF THIS
SUBDIVISION, THE TERM "QUALIFIED EMPLOYEE" SHALL HAVE THE  SAME  MEANING
AS  SET  FORTH  IN SUBDIVISION (B) OF SECTION TWENTY-FIVE-A OF THE LABOR
LAW. THE PORTION OF THE CREDIT DESCRIBED IN  SUBPARAGRAPH  (I)  OF  THIS
PARAGRAPH  SHALL  BE  ALLOWED FOR THE TAXABLE YEAR BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWELVE AND BEFORE JANUARY FIRST,  TWO  THOU-
SAND  THIRTEEN,  AND THE PORTION OF THE CREDIT DESCRIBED IN SUBPARAGRAPH
(II) OF THIS PARAGRAPH SHALL BE ALLOWED FOR TAXABLE YEARS  BEGINNING  ON
OR  AFTER  JANUARY  FIRST, TWO THOUSAND TWELVE AND BEFORE JANUARY FIRST,
TWO THOUSAND FOURTEEN.
  (B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY
NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS THAN THE AMOUNT  PRESCRIBED
IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF THIS SECTION.  HOWEVER, IF THE
AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
REDUCES THE TAX TO THAT AMOUNT, ANY AMOUNT OF CREDIT NOT  DEDUCTIBLE  IN
THAT TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
EIGHTY-SIX  OF THIS CHAPTER. PROVIDED, HOWEVER, NO INTEREST WILL BE PAID
THEREON.
  (C) THE TAXPAYER MAY BE REQUIRED TO  ATTACH  TO  ITS  TAX  RETURN  ITS
CERTIFICATE  OF ELIGIBILITY ISSUED BY THE COMMISSIONER OF LABOR PURSUANT
TO SECTION TWENTY-FIVE-A OF THE LABOR  LAW.    IN  NO  EVENT  SHALL  THE
TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT OF THE CREDIT LIST-
ED  ON THE CERTIFICATE OF ELIGIBILITY.  NOTWITHSTANDING ANY PROVISION OF
THIS CHAPTER TO THE CONTRARY, THE COMMISSIONER  AND  THE  COMMISSIONER'S
DESIGNEES  MAY  RELEASE THE NAMES AND ADDRESSES OF ANY TAXPAYER CLAIMING
THIS CREDIT AND THE  AMOUNT  OF  THE  CREDIT  EARNED  BY  THE  TAXPAYER.
PROVIDED,  HOWEVER,  IF  A  TAXPAYER  CLAIMS THIS CREDIT BECAUSE IT IS A

S. 2                               14                               A. 2

MEMBER OF A LIMITED LIABILITY COMPANY OR A  PARTNER  IN  A  PARTNERSHIP,
ONLY  THE  AMOUNT  OF  CREDIT EARNED BY THE ENTITY AND NOT THE AMOUNT OF
CREDIT CLAIMED BY THE TAXPAYER MAY BE RELEASED.
  S  3. Section 606 of the tax law is amended by adding a new subsection
(tt) to read as follows:
  (TT) NEW YORK YOUTH WORKS TAX CREDIT. (1) A  TAXPAYER  THAT  HAS  BEEN
CERTIFIED  BY THE COMMISSIONER OF LABOR AS A QUALIFIED EMPLOYER PURSUANT
TO SECTION TWENTY-FIVE-A OF THE LABOR LAW  SHALL  BE  ALLOWED  A  CREDIT
AGAINST  THE  TAX  IMPOSED  BY  THIS  ARTICLE  EQUAL TO (A) FIVE HUNDRED
DOLLARS PER MONTH FOR UP TO SIX MONTHS FOR EACH QUALIFIED  EMPLOYEE  THE
EMPLOYER  EMPLOYS  IN  A  FULL-TIME JOB OR TWO HUNDRED FIFTY DOLLARS PER
MONTH FOR UP TO SIX MONTHS FOR  EACH  QUALIFIED  EMPLOYEE  THE  EMPLOYER
EMPLOYS  IN  A  PART-TIME JOB OF AT LEAST TWENTY HOURS PER WEEK, AND (B)
ONE THOUSAND DOLLARS FOR EACH QUALIFIED EMPLOYEE WHO IS EMPLOYED FOR  AT
LEAST  AN ADDITIONAL SIX MONTHS BY THE QUALIFIED EMPLOYER IN A FULL-TIME
JOB OR FIVE HUNDRED DOLLARS FOR EACH QUALIFIED EMPLOYEE WHO IS  EMPLOYED
FOR  AT  LEAST  AN  ADDITIONAL SIX MONTHS BY THE QUALIFIED EMPLOYER IN A
PART-TIME JOB OF AT LEAST TWENTY HOURS PER WEEK. A TAXPAYER  THAT  IS  A
PARTNER  IN  A  PARTNERSHIP,  MEMBER  OF  A LIMITED LIABILITY COMPANY OR
SHAREHOLDER IN AN S CORPORATION THAT HAS BEEN CERTIFIED BY  THE  COMMIS-
SIONER   OF   LABOR   AS   A  QUALIFIED  EMPLOYER  PURSUANT  TO  SECTION
TWENTY-FIVE-A OF THE LABOR LAW SHALL BE ALLOWED ITS PRO  RATA  SHARE  OF
THE  CREDIT  EARNED  BY  THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR S
CORPORATION. FOR  PURPOSES  OF  THIS  SUBSECTION,  THE  TERM  "QUALIFIED
EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF
SECTION  TWENTY-FIVE-A  OF  THE  LABOR  LAW.  THE  PORTION OF THE CREDIT
DESCRIBED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL BE ALLOWED FOR THE
TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOUSAND  TWELVE
AND  BEFORE JANUARY FIRST, TWO THOUSAND THIRTEEN, AND THE PORTION OF THE
CREDIT DESCRIBED IN SUBPARAGRAPH (B) OF THIS PARAGRAPH SHALL BE  ALLOWED
FOR  TAXABLE  YEARS  BEGINNING  ON  OR AFTER JANUARY FIRST, TWO THOUSAND
TWELVE AND BEFORE JANUARY FIRST, TWO THOUSAND FOURTEEN.
  (2) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION  EXCEEDS
THE TAXPAYER'S TAX FOR THE TAXABLE YEAR, ANY AMOUNT OF CREDIT NOT DEDUC-
TIBLE  IN  THAT TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO
BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE. PROVIDED, HOWEVER, NO INTEREST  WILL
BE PAID THEREON.
  (3)  THE  TAXPAYER  MAY  BE  REQUIRED  TO ATTACH TO ITS TAX RETURN ITS
CERTIFICATE OF ELIGIBILITY ISSUED BY THE COMMISSIONER OF LABOR  PURSUANT
TO  SECTION  TWENTY-FIVE-A  OF  THE  LABOR  LAW.   IN NO EVENT SHALL THE
TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT OF THE CREDIT LIST-
ED ON THE CERTIFICATE OF ELIGIBILITY.  NOTWITHSTANDING ANY PROVISION  OF
THIS  CHAPTER  TO  THE CONTRARY, THE COMMISSIONER AND THE COMMISSIONER'S
DESIGNEES MAY RELEASE THE NAMES AND ADDRESSES OF ANY  TAXPAYER  CLAIMING
THIS  CREDIT  AND  THE  AMOUNT  OF  THE  CREDIT  EARNED BY THE TAXPAYER.
PROVIDED, HOWEVER, IF A TAXPAYER CLAIMS THIS  CREDIT  BECAUSE  IT  IS  A
MEMBER  OF A LIMITED LIABILITY COMPANY, A PARTNER IN A PARTNERSHIP, OR A
SHAREHOLDER IN A SUBCHAPTER S CORPORATION, ONLY  THE  AMOUNT  OF  CREDIT
EARNED BY THE ENTITY AND NOT THE AMOUNT OF CREDIT CLAIMED BY THE TAXPAY-
ER MAY BE RELEASED.
  S  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause  (xxxiii)  to  read  as
follows:
(XXXIII) NEW YORK YOUTH WORKS        AMOUNT OF CREDIT UNDER
         TAX CREDIT                  SUBDIVISION FORTY-FOUR OF

S. 2                               15                               A. 2

                                     SECTION TWO HUNDRED TEN
S 5. This act shall take effect immediately.

                                 PART E

  Section  1.  The  economic  development law is amended by adding a new
article 20 to read as follows:
                                ARTICLE 20
                   EMPIRE STATE JOBS RETENTION PROGRAM

SECTION 420. SHORT TITLE.
        421. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION.
        422. DEFINITIONS.
        423. ELIGIBILITY CRITERIA.
        424. APPLICATION AND APPROVAL PROCESS.
        425. EMPIRE STATE JOBS RETENTION PROGRAM CREDIT.
        426. POWERS AND DUTIES OF THE COMMISSIONER.
        427. MAINTENANCE OF RECORDS.
        428. REPORTING.
        429. CAP ON TAX CREDIT.

  S 420. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY  BE  CITED  AS
THE "EMPIRE STATE JOBS RETENTION PROGRAM."
  S 421. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION. IT IS HEREBY
FOUND  AND  DECLARED  THAT  NEW  YORK STATE NEEDS, AS A MATTER OF PUBLIC
POLICY, TO CREATE COMPETITIVE FINANCIAL INCENTIVES TO  RETAIN  STRATEGIC
BUSINESSES  AND  JOBS  THAT  ARE AT RISK OF LEAVING THE STATE DUE TO THE
IMPACT ON ITS BUSINESS OPERATIONS OF AN EVENT LEADING  TO  AN  EMERGENCY
DECLARATION  BY THE GOVERNOR. THE EMPIRE STATE JOBS RETENTION PROGRAM IS
CREATED TO SUPPORT THE RETENTION OF THE  STATE'S  MOST  STRATEGIC  BUSI-
NESSES IN THE EVENT OF AN EMERGENCY.
  THIS LEGISLATION CREATES A JOBS TAX CREDIT FOR EACH JOB OF A STRATEGIC
BUSINESS DIRECTLY IMPACTED BY AN EMERGENCY AND PROTECTS STATE TAXPAYERS'
DOLLARS  BY  ENSURING  THAT NEW YORK PROVIDES TAX BENEFITS ONLY TO BUSI-
NESSES THAT CAN DEMONSTRATE SUBSTANTIAL  PHYSICAL  DAMAGE  AND  ECONOMIC
HARM  RESULTING FROM AN EVENT LEADING TO AN EMERGENCY DECLARATION BY THE
GOVERNOR.
  S 422. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
  1. "AGRICULTURE" MEANS BOTH  AGRICULTURAL  PRODUCTION  (ESTABLISHMENTS
PERFORMING  THE COMPLETE FARM OR RANCH OPERATION, SUCH AS FARM OWNER-OP-
ERATORS, TENANT FARM  OPERATORS,  AND  SHARECROPPERS)  AND  AGRICULTURAL
SUPPORT  (ESTABLISHMENTS  THAT PERFORM ONE OR MORE ACTIVITIES ASSOCIATED
WITH FARM OPERATION, SUCH AS SOIL PREPARATION, PLANTING, HARVESTING, AND
MANAGEMENT, ON A CONTRACT OR FEE BASIS).
  2. "BACK OFFICE OPERATIONS" MEANS A BUSINESS FUNCTION THAT MAY INCLUDE
ONE OR MORE OF THE FOLLOWING ACTIVITIES: CUSTOMER  SERVICE,  INFORMATION
TECHNOLOGY  AND DATA PROCESSING, HUMAN RESOURCES, ACCOUNTING AND RELATED
ADMINISTRATIVE FUNCTIONS.
  3. "CERTIFICATE OF ELIGIBILITY"  MEANS  THE  DOCUMENT  ISSUED  BY  THE
DEPARTMENT  TO  AN  APPLICANT  THAT  HAS  COMPLETED AN APPLICATION TO BE
ADMITTED INTO THE EMPIRE STATE  JOBS  RETENTION  PROGRAM  AND  HAS  BEEN
ACCEPTED INTO THE PROGRAM BY THE DEPARTMENT. POSSESSION OF A CERTIFICATE
OF ELIGIBILITY DOES NOT BY ITSELF GUARANTEE THE ELIGIBILITY TO CLAIM THE
TAX CREDIT.
  4.  "CERTIFICATE OF TAX CREDIT" MEANS THE DOCUMENT ISSUED TO A PARTIC-
IPANT BY THE DEPARTMENT, AFTER THE  DEPARTMENT  HAS  VERIFIED  THAT  THE

S. 2                               16                               A. 2

PARTICIPANT HAS MET ALL APPLICABLE ELIGIBILITY CRITERIA IN THIS ARTICLE.
THE  CERTIFICATE SHALL BE ISSUED ANNUALLY IF SUCH CRITERIA ARE SATISFIED
AND SHALL SPECIFY THE EXACT AMOUNT OF EACH TAX CREDIT UNDER THIS ARTICLE
THAT   A  PARTICIPANT  MAY  CLAIM,  PURSUANT  TO  SECTION  FOUR  HUNDRED
TWENTY-FIVE OF THIS ARTICLE, AND SHALL SPECIFY THE TAXABLE YEAR IN WHICH
SUCH CREDIT MAY BE CLAIMED.
  5. "DISTRIBUTION CENTER" MEANS A LARGE SCALE FACILITY INVOLVING  PROC-
ESSING,  REPACKAGING  AND/OR MOVEMENT OF FINISHED OR SEMI-FINISHED GOODS
TO RETAIL LOCATIONS ACROSS A MULTI-STATE AREA.
  6. "FINANCIAL SERVICES DATA CENTERS" OR "FINANCIAL  SERVICES  CUSTOMER
BACK  OFFICE  OPERATIONS"  MEANS  OPERATIONS  THAT  MANAGE  THE  DATA OR
ACCOUNTS OF EXISTING CUSTOMERS OR PROVIDE PRODUCT OR SERVICE INFORMATION
AND SUPPORT TO CUSTOMERS  OF  FINANCIAL  SERVICES  COMPANIES,  INCLUDING
BANKS,  OTHER  LENDERS,  SECURITIES AND COMMODITIES BROKERS AND DEALERS,
INVESTMENT BANKS,  PORTFOLIO  MANAGERS,  TRUST  OFFICES,  AND  INSURANCE
COMPANIES.
  7.  "IMPACTED  JOBS" MEANS JOBS EXISTING AT A BUSINESS ENTERPRISE AT A
LOCATION OR LOCATIONS WITHIN THE COUNTY DECLARED  AN  EMERGENCY  BY  THE
GOVERNOR  ON  THE  DAY  IMMEDIATELY PRECEDING THE DAY ON WHICH THE EVENT
LEADING TO THE EMERGENCY DECLARATION BY THE GOVERNOR OCCURRED.
  8. "MANUFACTURING" MEANS THE PROCESS OF  WORKING  RAW  MATERIALS  INTO
PRODUCTS  SUITABLE FOR USE OR WHICH GIVES NEW SHAPES, NEW QUALITY OR NEW
COMBINATIONS TO MATTER WHICH HAS ALREADY GONE  THROUGH  SOME  ARTIFICIAL
PROCESS  BY  THE  USE  OF MACHINERY, TOOLS, APPLIANCES, OR OTHER SIMILAR
EQUIPMENT. "MANUFACTURING" DOES NOT INCLUDE AN OPERATION  THAT  INVOLVES
ONLY  THE  ASSEMBLY  OF  COMPONENTS,  PROVIDED, HOWEVER, THE ASSEMBLY OF
MOTOR VEHICLES OR OTHER HIGH VALUE-ADDED PRODUCTS  SHALL  BE  CONSIDERED
MANUFACTURING.
  9. "PARTICIPANT" MEANS A BUSINESS ENTITY THAT:
  (A)  HAS  COMPLETED  AN APPLICATION PRESCRIBED BY THE DEPARTMENT TO BE
ADMITTED INTO THE PROGRAM;
  (B) HAS BEEN ISSUED A CERTIFICATE OF ELIGIBILITY BY THE DEPARTMENT;
  (C) HAS DEMONSTRATED THAT IT MEETS THE ELIGIBILITY CRITERIA IN SECTION
FOUR HUNDRED TWENTY-THREE AND SUBDIVISION TWO OF  SECTION  FOUR  HUNDRED
TWENTY-FOUR OF THIS ARTICLE; AND
  (D) HAS BEEN CERTIFIED AS A PARTICIPANT BY THE COMMISSIONER.
  10.  "PRELIMINARY  SCHEDULE  OF  BENEFITS" MEANS THE MAXIMUM AGGREGATE
AMOUNT OF THE TAX CREDIT THAT A PARTICIPANT IN  THE  EMPIRE  STATE  JOBS
RETENTION  PROGRAM  IS ELIGIBLE TO RECEIVE PURSUANT TO THIS ARTICLE. THE
SCHEDULE SHALL INDICATE THE ANNUAL AMOUNT OF THE  CREDIT  A  PARTICIPANT
MAY CLAIM IN EACH OF ITS TEN YEARS OF ELIGIBILITY. THE PRELIMINARY SCHE-
DULE  OF  BENEFITS SHALL BE ISSUED BY THE DEPARTMENT WHEN THE DEPARTMENT
APPROVES THE APPLICATION FOR ADMISSION INTO THE PROGRAM. THE COMMISSION-
ER MAY AMEND THAT SCHEDULE, PROVIDED THAT THE COMMISSIONER COMPLIES WITH
THE CREDIT CAPS IN SECTION THREE HUNDRED FIFTY-NINE OF THIS CHAPTER.
  11. "RELATED PERSON" MEANS A RELATED PERSON PURSUANT  TO  SUBPARAGRAPH
(C)  OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION FOUR HUNDRED SIXTY-
FIVE OF THE INTERNAL REVENUE CODE.
  12. "SCIENTIFIC RESEARCH AND DEVELOPMENT"  MEANS  CONDUCTING  RESEARCH
AND  EXPERIMENTAL  DEVELOPMENT  IN  THE  PHYSICAL, ENGINEERING, AND LIFE
SCIENCES, INCLUDING BUT NOT LIMITED TO AGRICULTURE,  ELECTRONICS,  ENVI-
RONMENTAL,  BIOLOGY,  BOTANY, BIOTECHNOLOGY, COMPUTERS, CHEMISTRY, FOOD,
FISHERIES, FORESTS, GEOLOGY, HEALTH, MATHEMATICS,  MEDICINE,  OCEANOGRA-
PHY,  PHARMACY, PHYSICS, VETERINARY, AND OTHER ALLIED SUBJECTS.  FOR THE
PURPOSES OF THIS ARTICLE, SCIENTIFIC RESEARCH AND DEVELOPMENT  DOES  NOT
INCLUDE MEDICAL OR VETERINARY LABORATORY TESTING FACILITIES.

S. 2                               17                               A. 2

  13.  "SOFTWARE  DEVELOPMENT"  MEANS  THE  CREATION  OF  CODED COMPUTER
INSTRUCTIONS AND INCLUDES NEW MEDIA AS DEFINED BY  THE  COMMISSIONER  IN
REGULATIONS.
  S  423.  ELIGIBILITY  CRITERIA.  1.  TO BE A PARTICIPANT IN THE EMPIRE
STATE JOBS RETENTION PROGRAM, A BUSINESS ENTITY  SHALL  OPERATE  IN  NEW
YORK STATE PREDOMINANTLY:
  (A)  AS  A FINANCIAL SERVICES DATA CENTER OR A FINANCIAL SERVICES BACK
OFFICE OPERATION;
  (B) IN MANUFACTURING;
  (C) IN SOFTWARE DEVELOPMENT AND NEW MEDIA;
  (D) IN SCIENTIFIC RESEARCH AND DEVELOPMENT;
  (E) IN AGRICULTURE;
  (F) IN THE CREATION OR EXPANSION OF  BACK  OFFICE  OPERATIONS  IN  THE
STATE; OR
  (G) IN A DISTRIBUTION CENTER.
  2. WHEN DETERMINING WHETHER AN APPLICANT IS OPERATING PREDOMINANTLY IN
ONE  OF  THE  INDUSTRIES  LISTED IN SUBDIVISION ONE OF THIS SECTION, THE
COMMISSIONER WILL EXAMINE THE NATURE OF THE  BUSINESS  ACTIVITY  AT  THE
LOCATION  FOR  THE  PROPOSED  PROJECT AND WILL MAKE ELIGIBILITY DETERMI-
NATIONS BASED ON SUCH ACTIVITY.
  3. FOR THE PURPOSES OF THIS ARTICLE, IN ORDER TO  PARTICIPATE  IN  THE
EMPIRE  STATE JOBS RETENTION PROGRAM, A BUSINESS ENTITY OPERATING IN ONE
OF THE STRATEGIC INDUSTRIES LISTED IN SUBDIVISION ONE  OF  THIS  SECTION
(A)  MUST BE LOCATED IN A COUNTY IN WHICH AN EMERGENCY HAS BEEN DECLARED
BY THE GOVERNOR ON OR AFTER JANUARY FIRST, TWO THOUSAND ELEVEN, (B) MUST
DEMONSTRATE SUBSTANTIAL PHYSICAL DAMAGE AND ECONOMIC HARM RESULTING FROM
THE EVENT LEADING TO THE EMERGENCY DECLARATION BY THE GOVERNOR, AND  (C)
MUST  HAVE  HAD  AT  LEAST  ONE HUNDRED FULL-TIME EQUIVALENT JOBS IN THE
COUNTY IN WHICH AN EMERGENCY HAS BEEN DECLARED BY THE  GOVERNOR  ON  THE
DAY  IMMEDIATELY  PRECEDING  THE  DAY  ON WHICH THE EVENT LEADING TO THE
EMERGENCY DECLARATION BY THE  GOVERNOR  OCCURRED,  AND  MUST  RETAIN  OR
EXCEED THAT NUMBER OF JOBS IN NEW YORK STATE.
  4.  A  NOT-FOR-PROFIT BUSINESS ENTITY, A BUSINESS ENTITY WHOSE PRIMARY
FUNCTION IS THE PROVISION OF SERVICES INCLUDING PERSONAL SERVICES, BUSI-
NESS SERVICES, OR THE PROVISION OF UTILITIES, A BUSINESS ENTITY  ENGAGED
PREDOMINANTLY  IN  THE  RETAIL  OR  ENTERTAINMENT INDUSTRY, OR A COMPANY
ENGAGED IN THE GENERATION OR DISTRIBUTION OF ELECTRICITY,  THE  DISTRIB-
UTION  OF  NATURAL  GAS,  OR THE PRODUCTION OF STEAM ASSOCIATED WITH THE
GENERATION OF ELECTRICITY ARE NOT ELIGIBLE TO  RECEIVE  THE  TAX  CREDIT
DESCRIBED IN THIS ARTICLE.
  5.  A BUSINESS ENTITY MUST BE IN COMPLIANCE WITH ALL WORKER PROTECTION
AND ENVIRONMENTAL LAWS AND REGULATIONS. IN ADDITION, A  BUSINESS  ENTITY
MAY  NOT  OWE  PAST DUE STATE TAXES. IN ADDITION, A BUSINESS ENTITY MUST
NOT OWE LOCAL PROPERTY TAXES FOR ANY YEAR PRIOR TO THE YEAR IN WHICH  IT
APPLIES TO PARTICIPATE IN THE EMPIRE STATE JOBS RETENTION PROGRAM.
  S 424. APPLICATION AND APPROVAL PROCESS. 1. A BUSINESS ENTERPRISE MUST
SUBMIT  A  COMPLETED APPLICATION AS PRESCRIBED BY THE COMMISSIONER. SUCH
COMPLETED APPLICATION MUST BE SUBMITTED TO THE COMMISSIONER  WITHIN  (A)
ONE HUNDRED EIGHTY DAYS OF THE DECLARATION OF AN EMERGENCY BY THE GOVER-
NOR IN THE COUNTY IN WHICH THE BUSINESS ENTERPRISE IS LOCATED OR (B) ONE
HUNDRED  EIGHTY  DAYS  OF THE ENACTMENT OF THIS ARTICLE, IF SUCH DATE IS
LATER THAN THE DATE SPECIFIED IN PARAGRAPH (A) OF THIS SUBDIVISION.
  2. AS PART OF SUCH APPLICATION, EACH BUSINESS ENTERPRISE MUST:
  (A) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
TAX INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION SHARED  AS

S. 2                               18                               A. 2

A  RESULT  OF  THIS  AGREEMENT  SHALL NOT BE AVAILABLE FOR DISCLOSURE OR
INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW.
  (B)  AGREE  TO  ALLOW  THE  DEPARTMENT  OF  LABOR TO SHARE ITS TAX AND
EMPLOYER INFORMATION  WITH  THE  DEPARTMENT.  HOWEVER,  ANY  INFORMATION
SHARED  AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLO-
SURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW.
  (C) ALLOW THE DEPARTMENT AND ITS AGENTS ACCESS TO ANY  AND  ALL  BOOKS
AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE.
  (D)  AGREE TO BE PERMANENTLY DISQUALIFIED FOR EMPIRE ZONE TAX BENEFITS
AT ANY  LOCATION  OR  LOCATIONS  THAT  QUALIFY  FOR  EMPIRE  STATE  JOBS
RETENTION  PROGRAM  BENEFITS  IF  ADMITTED  INTO  THE  EMPIRE STATE JOBS
RETENTION PROGRAM.
  (E) PROVIDE THE FOLLOWING INFORMATION TO THE DEPARTMENT UPON REQUEST:
  (I) A PLAN OUTLINING THE  SCHEDULE  FOR  MEETING  THE  JOBS  RETENTION
REQUIREMENTS  AS  SET FORTH IN SUBDIVISION THREE OF SECTION FOUR HUNDRED
TWENTY-THREE OF THIS ARTICLE. SUCH PLAN MUST  INCLUDE  DETAILS  ON  JOBS
TITLES AND EXPECTED SALARIES;
  (II)  THE  PRIOR  THREE YEARS OF FEDERAL AND STATE INCOME OR FRANCHISE
TAX RETURNS, UNEMPLOYMENT INSURANCE QUARTERLY RETURNS, REAL PROPERTY TAX
BILLS AND AUDITED FINANCIAL STATEMENTS; AND
  (III) THE EMPLOYER IDENTIFICATION OR SOCIAL SECURITY NUMBERS  FOR  ALL
RELATED  PERSONS  TO  THE APPLICANT, INCLUDING THOSE OF ANY MEMBERS OF A
LIMITED LIABILITY COMPANY OR PARTNERS IN A PARTNERSHIP.
  (F) PROVIDE A CLEAR AND DETAILED PRESENTATION OF ALL  RELATED  PERSONS
TO THE APPLICANT TO ASSURE THE DEPARTMENT THAT JOBS ARE NOT BEING SHIFT-
ED WITHIN THE STATE.
  (G)  CERTIFY,  UNDER  PENALTY  OF  PERJURY,  THAT IT IS IN SUBSTANTIAL
COMPLIANCE WITH ALL ENVIRONMENTAL, WORKER PROTECTION, AND LOCAL,  STATE,
AND FEDERAL TAX LAWS.
  3.  AFTER  REVIEWING A BUSINESS ENTERPRISE'S COMPLETED APPLICATION AND
DETERMINING THAT THE BUSINESS ENTERPRISE WILL MEET  THE  CONDITIONS  SET
FORTH  IN SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-THREE OF THIS
ARTICLE, THE DEPARTMENT MAY ADMIT THE APPLICANT  INTO  THE  PROGRAM  AND
PROVIDE  THE  APPLICANT WITH A CERTIFICATE OF ELIGIBILITY AND A PRELIMI-
NARY SCHEDULE OF BENEFITS BY YEAR BASED ON THE  APPLICANT'S  PROJECTIONS
AS  SET  FORTH IN ITS APPLICATION. THIS PRELIMINARY SCHEDULE OF BENEFITS
DELINEATES THE MAXIMUM POSSIBLE BENEFITS AN APPLICANT MAY RECEIVE.
  4. IN ORDER TO BECOME A PARTICIPANT IN THE PROGRAM, AN APPLICANT  MUST
SUBMIT  EVIDENCE THAT IT SATISFIES THE ELIGIBILITY CRITERIA SPECIFIED IN
SECTION FOUR HUNDRED TWENTY-THREE OF THIS ARTICLE AND SUBDIVISION TWO OF
THIS SECTION IN SUCH FORM  AS  THE  COMMISSIONER  MAY  PRESCRIBE.  AFTER
REVIEWING  SUCH EVIDENCE AND FINDING IT SUFFICIENT, THE DEPARTMENT SHALL
CERTIFY THE APPLICANT AS A PARTICIPANT AND ISSUE TO THAT  PARTICIPANT  A
CERTIFICATE OF TAX CREDIT FOR ONE TAXABLE YEAR. TO RECEIVE A CERTIFICATE
OF  TAX CREDIT FOR SUBSEQUENT TAXABLE YEARS, THE PARTICIPANT MUST SUBMIT
TO THE DEPARTMENT A PERFORMANCE REPORT DEMONSTRATING  THAT  THE  PARTIC-
IPANT CONTINUES TO SATISFY THE ELIGIBILITY CRITERIA SPECIFIED IN SECTION
FOUR  HUNDRED  TWENTY-THREE  OF THIS ARTICLE AND SUBDIVISION TWO OF THIS
SECTION.
  5. A PARTICIPANT MAY CLAIM TAX BENEFITS COMMENCING IN THE FIRST  TAXA-
BLE  YEAR  THAT  THE  BUSINESS  ENTERPRISE RECEIVES A CERTIFICATE OF TAX
CREDIT OR THE FIRST TAXABLE YEAR LISTED ON ITS PRELIMINARY  SCHEDULE  OF
BENEFITS,  WHICHEVER IS LATER. A PARTICIPANT MAY CLAIM SUCH BENEFITS FOR
THE NEXT NINE CONSECUTIVE TAXABLE YEARS, PROVIDED THAT  THE  PARTICIPANT
DEMONSTRATES  TO  THE DEPARTMENT THAT IT CONTINUES TO SATISFY THE ELIGI-
BILITY CRITERIA SPECIFIED IN SECTION FOUR HUNDRED TWENTY-THREE  OF  THIS

S. 2                               19                               A. 2

ARTICLE  AND  SUBDIVISION  TWO  OF THIS SECTION IN EACH OF THOSE TAXABLE
YEARS.
  S 425. EMPIRE STATE JOBS RETENTION PROGRAM CREDIT. 1. A PARTICIPANT IN
THE  EMPIRE  STATE  JOBS  RETENTION PROGRAM SHALL BE ELIGIBLE TO CLAIM A
CREDIT FOR THE IMPACTED JOBS. THE AMOUNT OF SUCH CREDIT SHALL  BE  EQUAL
TO  THE  PRODUCT  OF THE GROSS WAGES PAID FOR THE IMPACTED JOBS AND 6.85
PERCENT.
  2. THE TAX CREDIT ESTABLISHED IN THIS SECTION SHALL BE  REFUNDABLE  AS
PROVIDED IN THE TAX LAW. IF A PARTICIPANT FAILS TO SATISFY THE ELIGIBIL-
ITY  CRITERIA  IN ANY ONE YEAR, IT WILL LOSE THE ABILITY TO CLAIM CREDIT
FOR THAT YEAR. THE EVENT OF SUCH FAILURE SHALL NOT EXTEND  THE  ORIGINAL
TEN-YEAR ELIGIBILITY PERIOD.
  3.  THE  BUSINESS  ENTERPRISE  SHALL BE ALLOWED TO CLAIM THE CREDIT AS
PRESCRIBED IN SECTION THIRTY-SIX OF THE TAX LAW;  PROVIDED,  HOWEVER,  A
BUSINESS  ENTERPRISE  SHALL  NOT BE ALLOWED TO CLAIM THE CREDIT PRIOR TO
TAX YEAR TWO THOUSAND TWELVE.
  4. A PARTICIPANT MAY BE ELIGIBLE FOR BENEFITS UNDER  THIS  ARTICLE  AS
WELL  AS ARTICLE SEVENTEEN OF THIS CHAPTER, PROVIDED THE PARTICIPANT CAN
ONLY RECEIVE BENEFITS PURSUANT  TO  SUBDIVISION  TWO  OF  SECTION  THREE
HUNDRED  FIFTY-FIVE  OF THIS CHAPTER FOR COSTS IN EXCESS OF COSTS RECOV-
ERED BY INSURANCE.
  S 426. POWERS AND DUTIES OF  THE  COMMISSIONER.  1.  THE  COMMISSIONER
SHALL  PROMULGATE  REGULATIONS  ESTABLISHING  AN APPLICATION PROCESS AND
ELIGIBILITY CRITERIA, THAT WILL BE APPLIED CONSISTENT WITH THE  PURPOSES
OF  THIS  ARTICLE, SO AS NOT TO EXCEED THE ANNUAL CAP ON TAX CREDITS SET
FORTH IN  SECTION  THREE  HUNDRED  FIFTY-NINE  OF  THIS  CHAPTER  WHICH,
NOTWITHSTANDING  ANY PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRA-
TIVE PROCEDURE ACT, MAY BE ADOPTED ON AN  EMERGENCY  BASIS.  SUCH  REGU-
LATIONS  SHALL  INCLUDE, BUT NOT BE LIMITED TO, CRITERIA FOR DETERMINING
WHETHER A BUSINESS ENTITY DEMONSTRATES SUBSTANTIAL PHYSICAL  DAMAGE  AND
ECONOMIC  HARM FROM THE EVENT LEADING TO AN EMERGENCY DECLARATION BY THE
GOVERNOR.
  2. THE COMMISSIONER SHALL, IN  CONSULTATION  WITH  THE  DEPARTMENT  OF
TAXATION  AND FINANCE, DEVELOP A CERTIFICATE OF TAX CREDIT THAT SHALL BE
ISSUED BY THE COMMISSIONER TO PARTICIPANTS. PARTICIPANTS MAY BE REQUIRED
BY THE COMMISSIONER OF TAXATION AND FINANCE TO INCLUDE  THE  CERTIFICATE
OF  TAX  CREDIT  WITH THEIR TAX RETURN TO RECEIVE ANY TAX BENEFITS UNDER
THIS ARTICLE.
  3. THE COMMISSIONER SHALL SOLELY  DETERMINE  THE  ELIGIBILITY  OF  ANY
APPLICANT  APPLYING  FOR  ENTRY  INTO  THE  PROGRAM AND SHALL REMOVE ANY
PARTICIPANT FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIREMENTS
SET FORTH IN SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-FOUR OF THIS
ARTICLE, OR FOR FAILING TO MEET THE JOB RETENTION REQUIREMENTS SET FORTH
IN SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-THREE OF THIS  ARTI-
CLE,  OR  FOR  FAILING  TO  MEET THE REQUIREMENTS OF SUBDIVISION FIVE OF
SECTION FOUR HUNDRED TWENTY-THREE OF THIS ARTICLE.
  S 427. MAINTENANCE OF RECORDS. EACH PARTICIPANT SHALL KEEP  ALL  RELE-
VANT  RECORDS  FOR  THE DURATION OF ITS PROGRAM PARTICIPATION PLUS THREE
YEARS.
  S 428. REPORTING. 1. EACH PARTICIPANT MUST SUBMIT A PERFORMANCE REPORT
ANNUALLY, IN SUCH FORM AS THE COMMISSIONER MAY  REQUIRE,  WITHIN  THIRTY
DAYS OF THE END OF THEIR TAXABLE YEAR.
  2.  THE  COMMISSIONER  SHALL  PREPARE  ON  A QUARTERLY BASIS A PROGRAM
REPORT FOR POSTING ON THE DEPARTMENT'S WEBSITE. THE FIRST REPORT WILL BE
DUE JUNE THIRTIETH, TWO THOUSAND THIRTEEN, AND EVERY THREE MONTHS THERE-
AFTER. SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, THE  FOLLOWING:

S. 2                               20                               A. 2

NUMBER  OF APPLICANTS; NUMBER OF PARTICIPANTS APPROVED; NAMES OF PARTIC-
IPANTS; TOTAL  AMOUNT  OF  BENEFITS  CERTIFIED;  BENEFITS  RECEIVED  PER
PARTICIPANT;  TOTAL  NUMBER OF RETAINED JOBS; AND SUCH OTHER INFORMATION
AS THE COMMISSIONER DETERMINES.
  S  429.  CAP  ON TAX CREDIT. THE TOTAL AMOUNT OF TAX CREDITS LISTED ON
CERTIFICATES OF TAX CREDIT ISSUED BY THE COMMISSIONER  FOR  ANY  TAXABLE
YEAR  MAY  NOT EXCEED THE LIMITATIONS SET FORTH IN SECTION THREE HUNDRED
FIFTY-NINE OF THIS CHAPTER, AND SHALL BE ALLOTTED FROM THE FUNDS  AVAIL-
ABLE FOR TAX CREDITS UNDER THE EXCELSIOR JOBS PROGRAM ACT.
  S  2.  The  tax  law  is amended by adding a new section 36 to read as
follows:
  S 36. EMPIRE STATE JOBS RETENTION PROGRAM CREDIT.   (A)  ALLOWANCE  OF
CREDIT.  A  TAXPAYER  SUBJECT  TO  TAX UNDER ARTICLE NINE-A, TWENTY-TWO,
THIRTY-TWO OR THIRTY-THREE OF THIS CHAPTER SHALL  BE  ALLOWED  A  CREDIT
AGAINST  SUCH  TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION
(E) OF THIS SECTION. THE AMOUNT OF THE CREDIT, ALLOWABLE FOR TEN CONSEC-
UTIVE TAX YEARS, IS EQUAL TO THE AMOUNT DETERMINED PURSUANT  TO  SECTION
FOUR HUNDRED TWENTY-FIVE OF THE ECONOMIC DEVELOPMENT LAW.
  (B)  ELIGIBILITY.  TO  BE ELIGIBLE FOR THE EMPIRE STATE JOBS RETENTION
CREDIT, THE TAXPAYER SHALL HAVE BEEN ISSUED A CERTIFICATE OF TAX  CREDIT
BY  THE  DEPARTMENT OF ECONOMIC DEVELOPMENT PURSUANT TO SUBDIVISION FOUR
OF SECTION FOUR HUNDRED TWENTY-FOUR OF  THE  ECONOMIC  DEVELOPMENT  LAW,
WHICH  CERTIFICATE  SHALL SET FORTH THE AMOUNT OF THE CREDIT THAT MAY BE
CLAIMED FOR THE TAXABLE YEAR. A TAXPAYER MAY CLAIM SUCH CREDIT FOR UP TO
TEN CONSECUTIVE TAXABLE YEARS COMMENCING IN THE FIRST TAXABLE YEAR  THAT
THE  TAXPAYER  RECEIVES A CERTIFICATE OF TAX CREDIT OR THE FIRST TAXABLE
YEAR LISTED ON ITS PRELIMINARY SCHEDULE OF BENEFITS, WHICHEVER IS LATER.
HOWEVER, A TAXPAYER SHALL NOT BE ALLOWED TO CLAIM THE  CREDIT  PRIOR  TO
THE  TAX  YEAR COMMENCING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE
AND BEFORE JANUARY FIRST, TWO THOUSAND THIRTEEN.  THE TAXPAYER SHALL  BE
ALLOWED TO CLAIM ONLY THE AMOUNT LISTED ON THE CERTIFICATE OF TAX CREDIT
FOR  THAT TAXABLE YEAR. SUCH CERTIFICATE, IF REQUIRED BY THE COMMISSION-
ER, SHALL BE ATTACHED TO THE TAXPAYER'S RETURN. NO COST OR EXPENSE  PAID
OR INCURRED BY THE TAXPAYER WHICH IS INCLUDED AS PART OF THE CALCULATION
OF THIS CREDIT SHALL BE THE BASIS OF ANY OTHER TAX CREDIT.
  (C)  INFORMATION  SHARING.  (1)  NOTWITHSTANDING ANY PROVISION OF THIS
CHAPTER, EMPLOYEES AND OFFICERS OF THE DEPARTMENT OF  ECONOMIC  DEVELOP-
MENT  AND  THE DEPARTMENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND
EXCHANGE:
  (A) INFORMATION DERIVED FROM TAX RETURNS OR REPORTS THAT  IS  RELEVANT
TO  A  TAXPAYER'S  ELIGIBILITY  TO  PARTICIPATE IN THE EMPIRE STATE JOBS
RETENTION PROGRAM;
  (B) INFORMATION REGARDING THE CREDIT APPLIED FOR, ALLOWED  OR  CLAIMED
PURSUANT  TO  THIS SECTION AND TAXPAYERS WHO ARE APPLYING FOR THE CREDIT
OR WHO ARE CLAIMING THE CREDIT; AND
  (C) INFORMATION CONTAINED  IN  OR  DERIVED  FROM  CREDIT  CLAIM  FORMS
SUBMITTED  TO  THE  DEPARTMENT  AND  APPLICATIONS FOR ADMISSION INTO THE
EMPIRE STATE JOBS RETENTION PROGRAM.
  EXCEPT AS PROVIDED IN PARAGRAPH TWO OF THIS SUBDIVISION, ALL  INFORMA-
TION  EXCHANGED  BETWEEN  THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE
DEPARTMENT SHALL NOT BE SUBJECT TO DISCLOSURE OR  INSPECTION  UNDER  THE
STATE'S FREEDOM OF INFORMATION LAW.
  (2) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, THE COMMISSIONER OR
THE  COMMISSIONER'S  DESIGNEE  IS AUTHORIZED TO RELEASE THE NAME OF EACH
TAXPAYER CLAIMING THE CREDIT AND THE AMOUNT OF THE CREDIT EARNED BY EACH
TAXPAYER. HOWEVER, IF THE TAXPAYER CLAIMS A CREDIT BECAUSE THE  TAXPAYER

S. 2                               21                               A. 2

IS  A  MEMBER OF A LIMITED LIABILITY COMPANY, A PARTNER IN A PARTNERSHIP
OR A SHAREHOLDER IN A SUBCHAPTER S  CORPORATION,  ONLY  THE  NAME  OF  A
LIMITED  LIABILITY  COMPANY,  PARTNERSHIP  OR  SUBCHAPTER  S CORPORATION
PARTICIPATING  IN THE EMPIRE STATE JOBS RETENTION PROGRAM AND THE AMOUNT
OF CREDIT EARNED BY THAT ENTITY MAY BE RELEASED.
  (D) CREDIT RECAPTURE. IF A CERTIFICATE OF ELIGIBILITY OR A CERTIFICATE
OF TAX CREDIT ISSUED BY THE DEPARTMENT  OF  ECONOMIC  DEVELOPMENT  UNDER
ARTICLE  TWENTY  OF  THE  ECONOMIC  DEVELOPMENT  LAW  IS REVOKED BY SUCH
DEPARTMENT, THE AMOUNT OF CREDIT DESCRIBED IN THIS SECTION  AND  CLAIMED
BY  THE  TAXPAYER PRIOR TO THAT REVOCATION SHALL BE ADDED BACK TO TAX IN
THE TAXABLE YEAR IN WHICH ANY SUCH REVOCATION BECOMES FINAL.
  (E) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9-A: SECTION 210, SUBDIVISION 44;
  (2) ARTICLE 22: SECTION 606, SUBSECTION (TT);
  (3) ARTICLE 32: SECTION 1456, SUBSECTION (Y);
  (4) ARTICLE 33, SECTION 1511, SUBDIVISION (BB).
  S 3. Section 210 of the tax law is amended by adding a new subdivision
44 to read as follows:
  44. EMPIRE STATE JOBS RETENTION PROGRAM CREDIT. (A) ALLOWANCE OF CRED-
IT.  A  TAXPAYER WILL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN
SECTION THIRTY-SIX OF THIS CHAPTER, AGAINST THE TAXES  IMPOSED  BY  THIS
ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS
THAN  THE  MINIMUM  TAX FIXED BY THIS ARTICLE. HOWEVER, IF THE AMOUNT OF
CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
TAX  TO  SUCH  AMOUNT,  ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS  CHAPTER.    PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
  S 4. Section 606 of the tax law is amended by adding a new  subsection
(tt) to read as follows:
  (TT)  EMPIRE  STATE  JOBS  PROGRAM  RETENTION CREDIT. (1) ALLOWANCE OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN SECTION THIRTY-SIX OF THIS CHAPTER, AGAINST THE TAX IMPOSED  BY  THIS
ARTICLE.
  (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX  HUNDRED
EIGHTY-SIX  OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE
PAID THEREON.
  S 5. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is amended by adding a new clause (xxxiii) to read as
follows:

(XXXIII) EMPIRE STATE JOBS           AMOUNT OF CREDIT UNDER
RETENTION PROGRAM CREDIT             SUBDIVISION FORTY-FOUR
                                     OF SECTION TWO HUNDRED TEN
                                     OR UNDER SUBSECTION (Y) OF SECTION
                                     FOURTEEN HUNDRED FIFTY-SIX
  S 6. Section 1456 of the tax law is amended by adding a new subsection
(y) to read as follows:

S. 2                               22                               A. 2

  (Y) EMPIRE STATE JOBS RETENTION PROGRAM CREDIT. (1) ALLOWANCE OF CRED-
IT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED  IN
SECTION  THIRTY-SIX  OF  THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS
ARTICLE.
  (2)  APPLICATION  OF  CREDIT. THE CREDIT ALLOWED UNDER THIS SUBSECTION
FOR ANY TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS
THAN  THE  MINIMUM  TAX FIXED BY THIS ARTICLE. HOWEVER, IF THE AMOUNT OF
CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE  YEAR  REDUCES  THE
TAX  TO  SUCH  AMOUNT,  ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS  CHAPTER.    PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
  S 7. Section 1511 of the tax law is amended by adding a  new  subdivi-
sion (bb) to read as follows:
  (BB)  EMPIRE  STATE  JOBS  RETENTION  PROGRAM CREDIT. (1) ALLOWANCE OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN SECTION THIRTY-SIX OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS
ARTICLE.
  (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY  TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM TAX FIXED BY THIS ARTICLE. HOWEVER, IF  THE  AMOUNT  OF
CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS  NOT  DEDUCTIBLE  IN  SUCH
TAXABLE  YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH  THE  PROVISIONS  OF  SECTION  ONE  THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.    PROVIDED,  HOWEVER,  THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
  S  8.  This  act  shall take effect immediately; provided however that
sections two, three, four, five, six and seven of this act  shall  apply
to taxable years beginning on and after January 1, 2012.

                                 PART F

  Section  1.  This  act shall be known and may be cited as the "Infras-
tructure investment act".
  S 2. The legislature hereby finds and declares as follows:
  (1) Our state's aging infrastructure, the on-going economic crisis and
the resulting increase in unemployment in the state have all contributed
to a decline  in  our  state's  competitiveness  and  in  a  significant
decrease in New York state tax revenues.
  (2)  Sufficient  modern  infrastructure is of paramount importance not
only as a catalyst for job creation but also as a  key  driver  for  the
state's economic performance and competitiveness and the health, safety,
education and quality of life of our citizens and as the means to ensure
the efficient movement of people and goods.
  (3)  Expediting  the delivery of projects in New York state would lead
directly to job creation and increases in the state's competitiveness.
  (4) Businesses in New York state have extensive and diverse experience
in alternative project delivery methods for the study, planning, design,
development, financing, acquisition, installation, construction,  recon-
struction, improvement, maintenance and management of public infrastruc-
ture  facilities.  These  alternative  project  delivery methods provide
significant benefits to the public by:

S. 2                               23                               A. 2

  (a) Reducing the public cost of delivering and obtaining services  for
infrastructure assets;
  (b) Expediting project delivery;
  (c) Encouraging life cycle efficiencies;
  (d)  Providing  better  use  and  leverage of public human and capital
resources, and enhancing capital formation for large projects;
  (e) Creating jobs;
  (f) Promoting performance efficiencies; and
  (g) Bringing additional innovative best practice  contracting  by  the
private sector to bear on public infrastructure needs within the state.
  (5) For certain projects, the design-build project delivery method has
the potential to achieve projects delivered on guaranteed or accelerated
schedules, lower costs and risk shifting to the private sector generally
retained  in conventional design-bid-build projects as well as to accel-
erate capital investments throughout the state.
  (6) Recognizing the need to repair the  state's  aging  infrastructure
and maximize job creation in New York, the Governor and Legislature seek
to:
  (a) accelerate capital investment in New York state's infrastructure;
  (b)  coordinate  among  New  York  state's agencies and authorities on
capital investment;
  (c) encourage private sector capital investment in New York;
  (d) ensure that job creation benefits New York workers; and
  (e) assist the use of the most efficient and effective procurement and
project management for infrastructure projects  in  the  transportation,
energy,   environment,   public  facilities,  and  economic  development
sectors.
  S 3. For the purposes of this act:
  (a) "authorized state entity" shall mean the New  York  state  thruway
authority, the department of transportation, the office of parks, recre-
ation and historic preservation, the department of environmental conser-
vation and the New York state bridge authority.
  (b)  "best  value"  shall  mean  the  basis for awarding contracts for
services to the offerer that  optimize  quality,  cost  and  efficiency,
price  and  performance  criteria, which may include, but is not limited
to:
  1. The quality of the contractor's performance on previous projects;
  2.  The  timeliness  of  the  contractor's  performance  on   previous
projects;
  3.  The  level of customer satisfaction with the contractor's perform-
ance on previous projects;
  4. The contractor's record of performing previous projects  on  budget
and ability to minimize cost overruns;
  5. The contractor's ability to limit change orders;
  6. The contractor's ability to prepare appropriate project plans;
  7. The contractor's technical capacities;
  8. The individual qualifications of the contractor's key personnel;
  9.  The  contractor's  ability  to assess and manage risk and minimize
risk impact; and
  10. The contractor's past record of compliance with  article  15-A  of
the executive law.
  Such  basis  shall reflect, wherever possible, objective and quantifi-
able analysis.
  (c) "capital project" shall have the same  meaning  as  such  term  is
defined by subdivision 2-a of section 2 of the state finance law.

S. 2                               24                               A. 2

  (d)  "cost  plus" shall mean compensating a contractor for the cost to
complete a contract by reimbursing actual costs for labor, equipment and
materials plus an additional amount for overhead and profit.
  (e)  "design-build  contract" shall mean a contract for the design and
construction of a capital project with a single entity, which may  be  a
team comprised of separate entities.
  (f) "procurement record" means documentation of the decisions made and
the approach taken in the procurement process.
  S  4. Notwithstanding the provisions of section 38 of the highway law,
section 136-a of the state  finance  law,  section  359  of  the  public
authorities  law,  section 7210 of the education law, and the provisions
of any other law to the contrary, and in conformity  with  the  require-
ments  of  this act, an authorized state entity may utilize the alterna-
tive delivery method referred to as design-build contracts  for  capital
projects  related to the state's physical infrastructure, including, but
not limited to, the  state's  highways,  bridges,  dams,  flood  control
projects,  canals,  and  parks, including, but not limited to, to repair
damage caused by natural disaster, to correct health and safety defects,
to comply with federal and state laws, standards,  and  regulations,  to
extend  the  useful  life  of  or replace the state's highways, bridges,
dams, flood control projects, canals, and parks or to improve or add  to
the state's highways, bridges, dams, flood control projects, canals, and
parks;  provided  that  for  the contracts executed by the department of
transportation, the office of parks, recreation and  historic  preserva-
tion, or the department of environmental conservation, the total cost of
each  such  project shall not be less than one million two hundred thou-
sand dollars ($1,200,000).
  S 5. An entity selected by an authorized state entity to enter into  a
design-build  contract  shall  be selected through a two-step method, as
follows:
  (a) Step one. Generation of a list of entities that have  demonstrated
the  general capability to perform the design-build contract.  Such list
shall consist of a specified number of entities,  as  determined  by  an
authorized  state  entity, and shall be generated based upon the author-
ized state entity's review of responses to a publicly advertised request
for qualifications. The authorized state entity's request for qualifica-
tions shall include a general description of the  project,  the  maximum
number  of entities to be included on the list, and the selection crite-
ria to be used in generating the list.  Such  selection  criteria  shall
include the qualifications and experience of the design and construction
team,  organization, demonstrated responsibility, ability of the team or
of a member or members of the team to comply  with  applicable  require-
ments,  including  the  provisions  of  articles 145, 147 and 148 of the
education law, past record of compliance with the labor  law,  and  such
other qualifications the authorized state entity deems appropriate which
may  include  but  are  not  limited to project understanding, financial
capability and record of past performance. The authorized  state  entity
shall evaluate and rate all entities responding to the request for qual-
ifications.   Based upon such ratings, the authorized state entity shall
list the entities that shall receive a request for proposals in  accord-
ance  with  subdivision  (b) of this section.   To the extent consistent
with applicable federal law, the authorized state entity shall consider,
when awarding any contract pursuant to this section,  the  participation
of: (i) firms certified pursuant to article 15-A of the executive law as
minority  or  women-owned businesses and the ability of other businesses
under consideration to work with minority and women-owned businesses  so

S. 2                               25                               A. 2

as  to  promote  and  assist  participation by such businesses; and (ii)
small business  concerns  identified  pursuant  to  subdivision  (b)  of
section 139-g of the state finance law.
  (b) Step two. Selection of the proposal which is the best value to the
state.  The  authorized state entity shall issue a request for proposals
to the entities listed pursuant to subdivision (a) of this section.   If
such  an  entity  consists  of a team of separate entities, the entities
that comprise such a team must remain unchanged from the entity as list-
ed pursuant to subdivision (a) of this section unless otherwise approved
by the authorized state entity. The  request  for  proposals  shall  set
forth the project's scope of work, and other requirements, as determined
by the authorized state entity.  The request for proposals shall specify
the  criteria  to  be  used  to  evaluate the responses and the relative
weight  of  each  such  criteria.    Such  criteria  shall  include  the
proposal's  cost, the quality of the proposal's solution, the qualifica-
tions and experience of  the  design-build  entity,  and  other  factors
deemed  pertinent by the authorized state entity, which may include, but
shall not be limited to, the proposal's project implementation,  ability
to  complete  the  work in a timely and satisfactory manner, maintenance
costs of the completed project, maintenance  of  traffic  approach,  and
community  impact.  Any  contract  awarded pursuant to this act shall be
awarded  to  a  responsive  and  responsible  entity  that  submits  the
proposal,  which, in consideration of these and other specified criteria
deemed pertinent to the project, offers the best value to the state,  as
determined  by  the  authorized  state  entity.  Nothing herein shall be
construed to prohibit  the  authorized  entity  from  negotiating  final
contract terms and conditions including cost.
  S  6.  Any  contract entered into pursuant to this act shall include a
clause requiring that any professional services  regulated  by  articles
145, 147 and 148 of the education law shall be performed and stamped and
sealed, where appropriate, by a professional licensed in accordance with
such articles.
  S  7.  Construction for each capital project undertaken by the author-
ized state entity pursuant to this act shall be deemed a  "public  work"
to  be  performed  in accordance with the provisions of article 8 of the
labor law, as well as subject to sections 200, 240, 241 and 242  of  the
labor  law  and  enforcement  of prevailing wage requirements by the New
York state department of labor.
  S 8. If otherwise  applicable,  capital  projects  undertaken  by  the
authorized state entity pursuant to this act shall be subject to section
135 of the state finance law and section 222 of the labor law.
  S  9. Each contract entered into by the authorized state entity pursu-
ant to this section shall comply with the objectives and goals of minor-
ity and women-owned business enterprises pursuant to article 15-A of the
executive law or, for projects receiving federal aid, shall comply  with
applicable federal requirements for disadvantaged business enterprises.
  S  10.  Capital  projects  undertaken  by  the authorized state entity
pursuant to this act shall be subject to  the  requirements  of  article
eight  of the environmental conservation law, and, where applicable, the
requirements of the national environmental policy act.
  S 11.  If otherwise applicable, capital  projects  undertaken  by  the
authorized  state  entity  pursuant  to  this  act  shall be governed by
sections 139-d, 139-j, 139-k, paragraph f of subdivision 1 and paragraph
g of subdivision 9 of section 163 of the state finance law.

S. 2                               26                               A. 2

  S 12.  The submission of a proposal or responses or the execution of a
design-build contract pursuant to this act shall not be construed to  be
a violation of section 6512 of the education law.
  S  13.  Nothing  contained  in this act shall limit the right or obli-
gation of the authorized state entity to comply with the  provisions  of
any  existing  contract, including any existing contract with or for the
benefit of the holders of the obligations of the authorized state  enti-
ty, or to award contracts as otherwise provided by law.
  S  14. Alternative construction awarding processes.  (i) Notwithstand-
ing the provisions of any other law  to  the  contrary,  the  authorized
state entity may award a construction contract:
  1. To the contractor offering the best value; or
  2.  Utilizing  a cost-plus not to exceed guaranteed maximum price form
of contract in which the authorized state entity shall  be  entitled  to
monitor  and  audit  all project costs. In establishing the schedule and
process for determining a guaranteed maximum price, the contract between
the authorized state entity and the contractor shall:
  (a) describe the scope of the work and the  cost  of  performing  such
work;
  (b) include a detailed line item cost breakdown;
  (c)  include a list of all drawings, specifications and other informa-
tion on which the guaranteed maximum price is based;
  (d) include the dates for substantial and final  completion  on  which
the guaranteed maximum price is based; and
  (e) include a schedule of unit prices; or
  3.  Utilizing  a  lump  sum contract in which the contractor agrees to
accept a set dollar amount for a contract which comprises a  single  bid
without  providing a cost breakdown for all costs such as for equipment,
labor, materials, as well as such contractor's profit for completing all
items of work comprising the project.
  (ii) Capital projects undertaken by an  authorized  state  entity  may
include  an  incentive  clause  in  the contract for various performance
objectives, but the incentive clause shall not include an incentive that
exceeds the quantifiable value of the benefit received by the state. The
authorized state entity shall establish  such  performance  and  payment
bonds as it deems necessary.
  S   15.   Prequalified  contractors.  (a)  Notwithstanding  any  other
provision of law, the authorized state entity may  maintain  a  list  of
prequalified  contractors who are eligible to submit a proposal pursuant
to this act and entry into such list shall  be  continuously  available.
Prospective  contractors  may  be prequalified as contractors to provide
particular types of construction, in accordance  with  general  criteria
established  by the authorized state entity which may include, but shall
not be limited to, the experience, past performance, ability  to  under-
take the type and complexity of work, financial capability, responsibil-
ity, compliance with equal employment opportunity requirements and anti-
discrimination  laws,  and  reliability. Such prequalification may be by
categories designed by size and other factors.
  (b) A contractor who is denied prequalification or whose prequalifica-
tion is revoked or suspended by the authorized state entity  may  appeal
such  decision  to  the  authorized  state  entity. If such a suspension
extends for more than three months, it shall be deemed a  revocation  of
the  prequalification.  The authorized state entity may proceed with the
contract award during any appeal.
  S 16. Nothing in this act shall affect existing  powers  of  New  York
state public entities to use alternative project delivery methods.

S. 2                               27                               A. 2

  S  17.  This act shall take effect immediately and shall expire and be
deemed repealed 3 years after such date, provided  that,  projects  with
requests for qualifications issued prior to such repeal shall be permit-
ted to continue under this act notwithstanding such repeal.

                                 PART G

  Section  1.  Short  title. This act shall be known and may be cited as
the "Hurricane Irene and Tropical Storm Lee assessment relief act".
  S 2. Definitions. For the purposes of this act,  the  following  terms
shall have the following meanings:
  1.  "Eligible  county"  shall  mean  those  counties  which  have been
included in the federal disaster declarations for either Hurricane Irene
or Tropical Storm Lee or both.
  2. "Catastrophically impacted property" shall mean a property which is
located in an eligible municipality and which lost fifty percent or more
of its value as a result of either Hurricane Irene or Tropical Storm Lee
or both.
  3. "Eligible municipality" shall  mean  a  municipal  corporation,  as
defined  by subdivision ten of section one hundred two of the real prop-
erty tax law, which is either (a) an eligible county,  or  (b)  a  city,
town,  village  or  school  district  that is wholly or partly contained
within an eligible county.
  4. "Impacted assessment roll" shall mean a final assessment roll which
satisfies both of the following conditions: (a) the roll is based upon a
taxable status date occurring prior to August twenty-seventh, two  thou-
sand  eleven,  and  (b) taxes levied upon that roll by or on behalf of a
participating municipality are payable  without  interest  on  or  after
August twenty-seventh, two thousand eleven.
  5.  "Participating  municipality"  shall  mean  an  eligible municipal
corporation that has chosen to provide assessment relief  to  owners  of
catastrophically  impacted  properties pursuant to section three of this
act.
  S  3.  Local  option.  An  eligible  municipality  may  exercise   the
provisions  of  this act if its governing body shall, by the forty-fifth
day following the date upon which this act is approved by the  governor,
pass a resolution adopting the provisions of this act.
  S  4.  Assessment  relief  for  flood victims. (a) Notwithstanding any
provision of law to the contrary, where  property  was  catastrophically
impacted  by either Hurricane Irene or Tropical Storm Lee or both and is
located within a participating municipality, assessment relief shall  be
granted as follows:
  i.  If the property lost at least fifty but less than sixty percent of
its value due to either Hurricane Irene or Tropical Storm Lee  or  both,
the  taxable  assessed  value of the property shall be reduced by fifty-
five percent for purposes  of  the  participating  municipality  on  the
impacted assessment roll.
  ii.  If the property lost at least sixty but less than seventy percent
of its value due to either Hurricane Irene  or  Tropical  Storm  Lee  or
both,  the  taxable  assessed  value of the property shall be reduced by
sixty-five percent for purposes of the participating municipality on the
impacted assessment roll.
  iii. If the property lost  at  least  seventy  but  less  than  eighty
percent of its value due to either Hurricane Irene or Tropical Storm Lee
or  both, the taxable assessed value of the property shall be reduced by

S. 2                               28                               A. 2

seventy-five percent for purposes of the participating  municipality  on
the impacted assessment roll.
  iv.  If the property lost at least eighty but less than ninety percent
of its value due to either Hurricane Irene  or  Tropical  Storm  Lee  or
both,  the  taxable  assessed  value of the property shall be reduced by
eighty-five percent for purposes of the  participating  municipality  on
the impacted assessment roll.
  v.  If  the  property  lost  at least ninety but less than one hundred
percent of its value due to either Hurricane Irene or Tropical Storm Lee
or both, the taxable assessed value of the property shall be reduced  by
ninety-five  percent  for  purposes of the participating municipality on
the impacted assessment roll.
  vi. If the property lost all of its  value  due  to  either  Hurricane
Irene  or  Tropical Storm Lee or both, the taxable assessed value of the
property shall be reduced to zero  for  purposes  of  the  participating
municipality on the impacted assessment roll.
  vii. The percentage loss in value for this purpose shall be determined
by the assessor in the manner provided by this act, subject to review by
the board of assessment review.
  viii. No reduction in taxable assessed value shall be granted pursuant
to  this act except as specified above. No reduction in taxable assessed
value shall be granted pursuant to this  section  for  purposes  of  any
county, city, town, village or school district which has not adopted the
provisions of this act.
  (b)  To  receive  such relief pursuant to this act, the property owner
shall submit a written  request  to  the  assessor  within  ninety  days
following  the  date  upon  which  this act is approved by the governor.
Such request need not be in a particular format but  shall  describe  in
reasonable  detail the damage caused to the property by either Hurricane
Irene or Tropical Storm Lee or both and the condition  of  the  property
following  the  hurricane  or storm or both, and shall be accompanied by
supporting documentation if available.
  (c) Upon receiving such a request, the assessor shall make  a  finding
as  to  whether the property lost at least half of its value as a result
of the hurricane or storm  or  both,  and  if  so,  shall  classify  the
percentage loss of value within one of the following ranges:
  i. At least fifty percent but less than sixty percent,
  ii. At least sixty percent but less than seventy percent,
  iii. At least seventy percent but less than eighty percent,
  iv. At least eighty percent but less than ninety percent,
  v. At least ninety percent but less than one hundred percent, or
  vi. one hundred percent.
  (d)  The  assessor  shall  mail  written notice of such finding to the
property owner and the participating municipality.  Where  the  assessor
finds  that  the loss in value is less than fifty percent, or classifies
the loss within a lower  range  than  the  property  owner  believes  is
warranted,  the  property  owner  may file a complaint with the board of
assessment review. Such board shall  reconvene  upon  ten  days  written
notice  to the property owner and assessor to hear the appeal and deter-
mine the matter, and shall mail written notice of its  determination  to
the  assessor  and property owner. The provisions of article five of the
real property tax law shall govern the  review  process  to  the  extent
practicable.
  (e) Where property has lost at least fifty percent of its value due to
either  Hurricane  Irene  or  Tropical  Storm  Lee  or both, the taxable
assessed value of the property on the impacted assessment roll shall  be

S. 2                               29                               A. 2

reduced by the appropriate percentage specified in paragraph (a) of this
section,  provided that any exemptions which the property may be receiv-
ing shall be adjusted as necessary to account for such reduction in  the
taxable assessed value.  To the extent the taxable assessed value of the
property  originally  appearing on such roll exceeds the amount to which
it should be reduced pursuant to this act, the excess shall  be  consid-
ered an error in essential fact as defined by section five hundred fifty
of  the  real  property tax law. If the error appears on a tax roll, the
tax roll shall be corrected in  the  manner  provided  by  section  five
hundred fifty-four of the real property tax law or a refund or credit of
taxes  shall  be  granted in the manner provided by section five hundred
fifty-six or five hundred fifty-six-b of the real property tax  law.  If
the error appears on a final assessment roll but not on a tax roll, such
final  assessment  roll  shall  be  corrected  in the manner provided by
section five hundred fifty-three of the real property tax law.
  (f) The rights contained in this act shall not otherwise diminish  any
other  legally  available  right  of any property owner or party who may
otherwise lawfully challenge the valuation or  assessment  of  any  real
property or improvements thereon. All remaining rights hereby remain and
shall  be  available to the party to whom such rights would otherwise be
available notwithstanding this act.
  S 5. School districts held harmless.  Each  school  district  that  is
wholly  or  partially contained within an eligible county, as defined in
subdivision one of section two of this act, shall be  held  harmless  by
the  state  for  any reduction in state aid that would have been paid as
tax savings pursuant to section 1306-a of  the  real  property  tax  law
incurred due to the provisions of this act.
  S  6.    The  director of the office of real property tax services, or
other chief administrative official of that office within the department
of taxation and finance is authorized to develop a  guidance  memorandum
for  use  by assessing units. Such guidance memorandum shall assist with
the implementation of this act and shall be deemed to be binding on  all
assessing  units in counties which implement the provisions of this act.
The guidance memorandum shall have  no  force  or  effect  or  serve  as
authority  for any other act of assessing units or of the interpretation
or implementation of the laws of the state of New York  except  as  they
relate to the specific implementation of this act.
  S  7.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after August 26, 2011.

                                 PART H

  Section 1.  There is hereby created the Hurricane Irene-Tropical Storm
Lee Flood Recovery Grant Program.
  1. (a) Small businesses, farms, multiple dwellings and  not-for-profit
organizations  that  sustained direct physical flood-related damage as a
result of Hurricane Irene or Tropical Storm Lee are  eligible  to  apply
for a grant under this section. Such grant shall be in an amount no more
than $20,000 and shall be used for storm-related repairs and restoration
to structures, and for other storm-related costs, which were not covered
by any other federal, state or local recovery program or any third-party
payors.
  (b)  Empire  state  development  shall  administer this grant program,
which shall not exceed $21,000,000.  Empire state development is  hereby
empowered  to  establish  grant  guidelines  and  additional eligibility
criteria, based on available flood damage data  provided  by  applicable

S. 2                               30                               A. 2

federal agencies, as it deems necessary to effectuate the administration
of  this  program.    In  providing assistance pursuant to this section,
empire state development shall give preference to applicants that demon-
strate  the greatest need, based on available flood damage data provided
by applicable federal agencies.
  2. (a) Empire state development, in consultation with  the  department
of  environmental  conservation,  shall  administer  a grant program for
counties for flood mitigation  or  flood  control  projects  in  creeks,
streams,  and  brooks.    Only  counties  that have been included in the
federal disaster declarations for Hurricane Irene or Tropical Storm  Lee
are eligible to apply for a grant under this subdivision.
  (b) This grant program shall not exceed $9,000,000.  Individual grants
shall  be  not  less  than $300,000 and not more than $500,000, provided
however, counties may jointly apply for such grants, and the amount  for
such  joint grants may equal the sum of the amounts that would have been
separately available to the individual counties making such joint appli-
cation. Empire state development, in consultation with the department of
environmental conservation,  is  hereby  empowered  to  establish  grant
guidelines and additional eligibility criteria, based on available flood
damage  data provided by applicable federal agencies, as it deems neces-
sary to effectuate the administration  of  this  program.  In  providing
assistance pursuant to this section, empire state development shall give
preference  to  applicants  that demonstrate the greatest need, based on
available flood damage data provided  by  applicable  federal  agencies.
Priority  also  may  be given to remediation which if not undertaken may
result in additional flooding.
  3. The director of the budget,  in  consultation  with  the  temporary
president of the senate and the speaker of the assembly, shall develop a
plan  and  criteria  regarding distribution of funding to municipalities
located in an area which was included in a federal disaster  declaration
for either Hurricane Irene or Tropical Storm Lee. Such program shall not
exceed $20,000,000.  The director of the budget may direct and authorize
any  other  state agency to assist in administration and distribution of
these funds.
  S 2. This act shall take effect immediately.

                                 PART I

  Section 1. The real property tax  law  is  amended  by  adding  a  new
section 1326-b to read as follows:
  S 1326-B. PAYMENT OF TAXES IN INSTALLMENTS IN CERTAIN SCHOOL DISTRICTS
AFFECTED   BY  FLOODS  OR  NATURAL  DISASTERS.  1.  NOTWITHSTANDING  ANY
PROVISIONS OF THIS CHAPTER OR ANY OTHER GENERAL OR SPECIAL  LAW  TO  THE
CONTRARY, A SCHOOL DISTRICT WHICH IS WHOLLY OR PARTIALLY CONTAINED WITH-
IN  A  COUNTY  WHICH HAS BEEN INCLUDED IN A FEDERAL DISASTER DECLARATION
MAY, BY RESOLUTION IN ANY YEAR DURING WHICH A  FLOOD  OR  OTHER  NATURAL
DISASTER  OCCURS  IN  THE  SIX  MONTHS PRECEDING THE DUE DATE FOR SCHOOL
TAXES, PROVIDE THAT EVERY TAX IN EXCESS OF FIFTY DOLLARS LEVIED  BY  THE
BOARD  PURSUANT  TO LAW MAY BE PAID IN INSTALLMENTS IN AMOUNTS AND DATES
SPECIFIED IN THE RESOLUTION.  SUCH RESOLUTION SHALL APPLY ONLY  FOR  ONE
YEAR;  PROVIDED  THAT  NOTHING SHALL PRECLUDE THE ADOPTION OF ADDITIONAL
SUCH AUTHORIZATIONS IF SUBSEQUENT DISASTERS OCCUR.
  2. WHEN SUCH A RESOLUTION IS IN  EFFECT  IN  A  SCHOOL  DISTRICT,  THE
COLLECTING  OFFICER  SHALL BE AUTHORIZED TO RECEIVE SUCH TAXES UNTIL THE
DATE SPECIFIED IN THE RESOLUTION FOR THE PAYMENT OF TAXES. THE  COLLECT-
ING  OFFICER SHALL BE IN ATTENDANCE TO RECEIVE THE INSTALLMENTS OF TAXES

S. 2                               31                               A. 2

AT THE SAME PLACES AND HOURS SPECIFIED FOR  THE  RECEIPT  OF  THE  FIRST
INSTALLMENT,  AT LEAST THREE DAYS IN EACH WEEK FOR THE TWO WEEKS PRECED-
ING THE FINAL DATE FOR PAYMENT OF THE INSTALLMENTS. IN  THE  EVENT  THAT
THE  FIRST INSTALLMENT OF ANY TAX IS NOT PAID WITHIN THE TIME SPECIFIED,
THE COLLECTING OFFICER MAY RECEIVE THE SAME AT ANY TIME UNTIL THE  EXPI-
RATION  OF  HIS  WARRANT WITH INTEREST AS DETERMINED PURSUANT TO SECTION
NINE HUNDRED TWENTY-FOUR-A OF THIS CHAPTER UNTIL  PAID.  THE  COLLECTING
OFFICER'S  WARRANT  AND  NOTICE OF RECEIPT THEREOF SHALL BE CONFORMED IN
ACCORDANCE WITH THIS SECTION.
  3. AT THE EXPIRATION OF HIS WARRANT, THE COLLECTING OFFICER SHALL MAKE
A RETURN OF UNPAID TAXES IN THE SAME MANNER AS PROVIDED IN SECTION THIR-
TEEN HUNDRED THIRTY OR SECTION THIRTEEN HUNDRED THIRTY-TWO OF THIS ARTI-
CLE, AS APPLICABLE.
  4. FOR SCHOOL AID PAYMENTS FOR THE TWO THOUSAND  ELEVEN--TWO  THOUSAND
TWELVE  SCHOOL  YEAR,  THE  STATE IS AUTHORIZED TO ADVANCE TO ANY SCHOOL
DISTRICT WHICH ADOPTS A RESOLUTION PURSUANT TO THIS SECTION  ANY  SCHOOL
AID PAYMENT OR PORTION THEREOF AT ANY TIME AUTHORIZED BY THE COMMISSION-
ER  OF  EDUCATION,  THE COMPTROLLER, AND THE DIRECTOR OF THE DIVISION OF
THE BUDGET.
  5. A SCHOOL DISTRICT IS AUTHORIZED TO REFUND TO TAXPAYERS ANY PORTIONS
PREVIOUSLY PAID BY TAXPAYERS IF THE SCHOOL BOARD ADOPTS A RESOLUTION  TO
THAT EFFECT, WHICH ESTABLISHES AN INSTALLMENT PAYMENT SCHEDULE.  IF SUCH
RESOLUTION IS ADOPTED, THEN ANY TAXPAYER HAVING PAID ALL OR A PORTION OF
THEIR TAX PAYMENT SHALL BE ENTITLED TO SUCH REFUND UPON ENTERING INTO AN
AGREEMENT  WITH  THE  SCHOOL  DISTRICT  FOR  THE  PAYMENT OF THEIR TAXES
ACCORDING TO THE SCHEDULE ADOPTED BY THE SCHOOL DISTRICT.    ANY  UNPAID
TAXES  SHALL  BE  TIMELY PAID IF THE PAYMENT OTHERWISE COMPORTS WITH THE
RESOLUTION SCHEDULE ADOPTED BY THE SCHOOL DISTRICT.
  S 2. This act shall take effect  immediately;  provided  however  that
subdivision  4  of section 1326-b of the real property tax law, as added
by section one of this act shall expire and be deemed repealed  on  June
30, 2012.

                                 PART J

  Section  1. Section 182 of the executive law, as added by a chapter of
the laws of 2011, amending the executive law, in relation to a  prohibi-
tion  on  diversion of resources from dedicated funds derived from taxes
and fees that support the metropolitan transportation authority  or  the
New  York  city  transit  authority  and  their  subsidiaries in certain
instances, as proposed in legislative bills  numbers  S. 4257-C  and  A.
6766-C, is amended to read as follows:
  S 182. Diversion of funds dedicated to the metropolitan transportation
authority  or  the  New  York  city  transit  authority and any of their
subsidiaries to the general fund of the state is  prohibited.  [1.]  The
director  shall be prohibited from diverting revenues derived from taxes
and fees paid by the public into any fund created by law including,  but
not  limited  to  sections eighty-eight-a and eighty-nine-c of the state
finance law and chapter twenty-five of the laws of two thousand nine for
the purpose of funding the metropolitan transportation authority or  the
New  York  city transit authority and any of their subsidiaries into the
general fund of the state or into any  other  fund  maintained  for  the
support of another governmental purpose. No diversion of funds can occur
contrary to this section by an administrative act of the director or any
other  person  in  the executive branch [but can occur only upon] UNLESS
THE GOVERNOR DECLARES A FISCAL EMERGENCY, AND COMMUNICATES SUCH EMERGEN-

S. 2                               32                               A. 2

CY TO THE TEMPORARY PRESIDENT OF THE SENATE AND SPEAKER OF THE ASSEMBLY,
AND a statute IS enacted into law authorizing  a  diversion  that  would
otherwise be prohibited by this section.
  [2.  If any diversion of funds occurs by passage of legislation during
a regular or extraordinary session of the  legislature,  the  budget  or
legislation  diverting  funds shall include a diversion impact statement
which includes the following information:
  (a) The amount of the diversion from dedicated mass transit funds;
  (b) The amount diverted from each fund;
  (c) The amount diverted expressed as current monthly transit fares;
  (d) The cumulative amount of diversion  from  dedicated  mass  transit
funds during the preceding five years;
  (e) The date or dates when the diversion is to occur; and
  (f) A detailed estimate of the impact of diversion from dedicated mass
transit  funds  will  have on the level of mass transit service, mainte-
nance, security, and the current capital program.]
  S 2. This act shall take effect on the same date as a chapter  of  the
laws  of  2011, amending the executive law, in relation to a prohibition
on diversion of resources from dedicated funds derived  from  taxes  and
fees  that  support the metropolitan transportation authority or the New
York city transit authority and their subsidiaries in certain instances,
as proposed in legislative bills numbers S. 4257-C and A. 6766-C,  takes
effect.

                                 PART K

  Section 1. Subdivision (b) of section 13 of chapter 260 of the laws of
2011,  relating to establishing components of the NY-SUNY 2020 challenge
grant program, is amended to read as follows:
  (b) [If any such university center campus related  foundation,  alumni
association  or  affiliate  thereof,  any  not-for-profit corporation or
association organized by the president of a university center to further
its purposes, or any limited liability company whose sole member is  any
of  the  foregoing entities, or by the State University of New York, the
State University Construction Fund, or the Dormitory  Authority  of  the
State  of New York, on behalf of a university center at Albany, Bingham-
ton, or Stony Brook does not require a project labor agreement, then any
contractor, subcontractor, lease, grant, bond, covenant or other  agree-
ments  for  a  project  shall  be awarded pursuant to section 135 of the
state finance law] NOTWITHSTANDING SUBDIVISION (A) OF THIS SECTION,  ANY
CONTRACTS  AWARDED  OR  ENTERED INTO PURSUANT TO THE SUNY 2020 CHALLENGE
GRANT PROGRAM BY ANY UNIVERSITY CENTER CAMPUS RELATED FOUNDATION, ALUMNI
ASSOCIATION OR AFFILIATE  THEREOF,  ANY  NOT-FOR-PROFIT  CORPORATION  OR
ASSOCIATION ORGANIZED BY THE PRESIDENT OF A UNIVERSITY CENTER TO FURTHER
ITS  PURPOSES, OR ANY LIMITED LIABILITY COMPANY WHOSE SOLE MEMBER IS ANY
OF THE FOREGOING ENTITIES, OR BY THE STATE UNIVERSITY OF NEW  YORK,  THE
STATE  UNIVERSITY  CONSTRUCTION  FUND, OR THE DORMITORY AUTHORITY OF THE
STATE OF NEW YORK, ON BEHALF OF A UNIVERSITY CENTER AT ALBANY,  BINGHAM-
TON,  OR  STONY  BROOK  SHALL  BE UNDERTAKEN PURSUANT TO A PROJECT LABOR
AGREEMENT, AS DEFINED IN SUBDIVISION 1 OF SECTION 222 OF THE LABOR  LAW,
PROVIDED A STUDY DONE BY OR FOR THE CONTRACTING ENTITY DETERMINES THAT A
PROJECT  LABOR AGREEMENT WILL BENEFIT SUCH CONSTRUCTION, RECONSTRUCTION,
RENOVATION, REHABILITATION, IMPROVEMENT  OR  EXPANSION  THROUGH  REDUCED
RISK OF DELAY, POTENTIAL COST SAVINGS OR POTENTIAL REDUCTION IN THE RISK
OF LABOR UNREST IN LIGHT OF ANY PERTINENT LOCAL HISTORY THEREOF.

S. 2                               33                               A. 2

  S  2.  This act shall take effect immediately; provided, however, that
the amendments to section 13 of chapter 260 of the laws of 2011 made  by
section  one of this act shall not affect the expiration of such section
and shall be deemed to expire therewith.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act shall be adjudged by any court of
competent jurisdiction to the invalid, such judgment shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  S 3. This act shall take effect immediately  provided,  however,  that
the  applicable effective date of Parts A through K of this act shall be
as specifically set forth in the last section of such Parts.

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