S T A T E   O F   N E W   Y O R K
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                                  2840

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 18, 2013
                               ___________

Introduced by M. of A. WRIGHT -- read once and referred to the Committee
  on Ways and Means

AN  ACT  to  amend the tax law and the state finance law, in relation to
  the stock transfer  tax  and  to  creating  the  children's  ounce  of
  prevention fund

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

  Section 1. This act shall be known and may be cited as "the children's
ounce of prevention act".
  S 2. Subdivision 1 of section 280-a of the  tax  law,  as  amended  by
chapter 578 of the laws of 1981, is amended to read as follows:
  1.  Except  as  otherwise  provided  in  subdivision  fifteen  of this
section, where a tax shall have been paid under this article  a  portion
of  the  amount paid shall be allowed as a rebate and such portion shall
be paid to the taxpayer but only to the extent that moneys are available
for the payment of such rebates in the  stock  transfer  incentive  fund
established  pursuant  to section ninety-two-i of the state finance law.
The portion of the amount of tax paid which is to be allowed as a rebate
shall be thirty percent of the tax incurred  and  paid  on  transactions
subject  to the stock transfer tax occurring on and after October first,
nineteen hundred seventy-nine and  on  or  before  September  thirtieth,
nineteen  hundred  eighty and sixty percent of the tax incurred and paid
on such transactions occurring on  and  after  October  first,  nineteen
hundred  eighty  and  on or before September thirtieth, nineteen hundred
eighty-one and all of the amount of  tax  incurred  and  paid  shall  be
allowed  as  a  rebate on transactions subject to the stock transfer tax
occurring on and after October first, nineteen hundred eighty-one AND ON
OR BEFORE SEPTEMBER THIRTIETH, TWO THOUSAND THIRTEEN,  AND  NINETY-THREE
AND THREE-QUARTERS PERCENT OF THE TAX INCURRED AND PAID SHALL BE ALLOWED
AS  A  REBATE ON SUCH TRANSACTIONS OCCURRING ON AND AFTER OCTOBER FIRST,
TWO THOUSAND THIRTEEN.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00832-01-3
              

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  S 3. Subdivisions 3 and 4 of section 92-b of the  state  finance  law,
subdivision 3 as amended by chapter 878 of the laws of 1977, subdivision
4  as amended by chapter 724 of the laws of 1979, are amended to read as
follows:
  3.  The  moneys received from such tax and other sources in such fund,
after deducting the amount the  commissioner  of  taxation  and  finance
shall  determine  to  be necessary for reasonable costs of the state tax
commission in  administering,  collecting  and  distributing  such  tax,
commencing  with  the  fiscal  year  ending March thirty-first, nineteen
hundred seventy-seven,  shall  be  appropriated  to  (i)  the  municipal
assistance  corporation  for  the  city  of New York created pursuant to
title three of article ten of the public authorities  law  in  order  to
enable such corporation to fulfill the terms of any agreements made with
the  holders  of  its  notes  and  bonds  and to carry out its corporate
purposes including the maintenance of the capital reserve fund and  (ii)
to  the  extent  such  moneys  are  not  required by such corporation as
provided in subdivision seven of section ninety-two-d of this  [chapter]
ARTICLE  and,  after deducting the amount such commissioner shall deter-
mine to be necessary for reasonable costs of the state tax commission in
administering and making distributions in accordance with the provisions
of section two hundred eighty-a of the tax law from the  stock  transfer
incentive fund, to the stock transfer incentive fund created pursuant to
section  ninety-two-i  of this [chapter] ARTICLE to enable rebates to be
made from such fund under the provisions of section two hundred eighty-a
of the tax law and (iii) to the extent such moneys are not  required  by
such fund, as certified by the commissioner of taxation and finance, the
balance  shall be appropriated to the [city of New York, for the support
of local government] CHILDREN'S OUNCE  OF  PREVENTION  FUND  ESTABLISHED
PURSUANT TO SECTION NINETY-TWO-O OF THIS ARTICLE.
  4.  After  the  deduction of such costs of the state tax commission in
administering, collecting and distributing such tax, the balances in the
stock transfer tax fund so appropriated shall be distributed and paid on
the last business day of September, December, March and  June  into  the
special account established for the municipal assistance corporation for
the  city  of  New York in the municipal assistance tax fund established
pursuant to subdivision one of section ninety-two-d  of  this  [chapter]
ARTICLE, unless and to the extent the balances in such fund on each such
payment  day  are  not  required by such corporation as provided in said
subdivision seven of said section ninety-two-d in which case the balance
not so required, if any, after the deduction of such costs of the  state
tax  commission  in administering and making distributions in accordance
with the provisions of section two hundred eighty-a of the tax law  from
the  stock  transfer incentive fund shall be distributed and paid to the
stock transfer incentive fund in the  custody  of  the  commissioner  of
taxation  and  finance  established  pursuant to section ninety-two-i of
this [chapter] ARTICLE and unless and to the extent that the balances in
the stock transfer tax fund on each such payment day are not required by
the stock transfer incentive fund as provided in  such  section  ninety-
two-i  of  this  [chapter]  ARTICLE  in  which  case  the balance not so
required, if any, shall be distributed and paid  to  the  [chief  fiscal
officer of the city of New York to be paid into the treasury of the city
to  the  credit of the general fund or paid by the commissioner of taxa-
tion and finance to such other account or fund as may be  designated  in
writing by such chief fiscal officer at least ten business days prior to
such  last day and on each such day, the] CHILDREN'S OUNCE OF PREVENTION
FUND ESTABLISHED PURSUANT TO SECTION NINETY-TWO-O OF THIS ARTICLE.   THE

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commissioner  of  taxation  and finance shall certify to the comptroller
the amount deducted for administering, collecting and distributing  such
tax  during  such  quarterly  period  and shall pay such amount into the
general  fund  of the state treasury to the credit of the state purposes
fund therein.  In no event shall any amount (other than the amount to be
deducted for administering, collecting and  distributing  such  tax)  be
distributed or paid from the stock transfer tax fund to any person other
than  the  municipal  assistance  corporation  for  the city of New York
unless and until the aggregate of all payments certified  to  the  comp-
troller  as  required  by  such  corporation in order to comply with its
agreements with the holders of its notes and bonds and to carry out  its
corporate  purposes,  including  the  maintenance of the capital reserve
fund, which remain unappropriated or unpaid to  such  corporation  shall
have  been  appropriated to such corporation and shall have been paid in
full provided, however, that no person, including  such  corporation  or
the  holders  of  its notes or bonds shall have any lien on such tax and
such agreements shall be executory only to the extent  of  the  balances
available  to  the  state in such fund. If the balances in such fund are
not required by such corporation pursuant  to  the  provisions  of  this
subdivision,  on  each  such  last  business day of September, December,
March and June, the commissioner of taxation and finance  shall  certify
to  the  comptroller  the  amount  deducted for administering and making
distributions in accordance with the provisions of section  two  hundred
eighty-a  of  the  tax law from the stock transfer incentive fund during
such quarterly period and he shall pay such amount into the general fund
of the state treasury to the credit of the state purposes fund  therein.
To  the  extent  such  moneys  are  not required by such corporation, as
provided in subdivision seven of section ninety-two-d of this  [chapter]
ARTICLE,  no  amount  thereof (other than such amount to be deducted for
administering, collecting and distributing such tax and  such  costs  in
administering and making distributions in accordance with the provisions
of  section  two hundred eighty-a of the tax law from the stock transfer
incentive fund) shall be distributed or paid from the stock transfer tax
fund other than to such stock transfer incentive fund OR THE  CHILDREN'S
OUNCE  OF PREVENTION FUND in the custody of the commissioner of taxation
and finance unless and until the aggregate of all payments certified  to
the  comptroller by such commissioner pursuant to the provisions of such
incentive fund as necessary to provide payments on  account  of  rebates
authorized pursuant to section two hundred eighty-a of the tax law which
remain  unappropriated  or unpaid to such fund shall have been appropri-
ated to such fund and shall have been paid in  full  provided,  however,
that  no  person, including any taxpayer under article twelve of the tax
law or any member or dealer referred to in subdivisions two-a and six of
section two hundred eighty-a of such law, shall have any  lien  on  this
fund or the stock transfer incentive fund.
  S  4. The state finance law is amended by adding a new section 92-o to
read as follows:
  S 92-O. THE CHILDREN'S OUNCE OF PREVENTION FUND. 1.  THERE  IS  HEREBY
ESTABLISHED  IN  THE  JOINT  CUSTODY OF THE COMMISSIONER OF TAXATION AND
FINANCE AND THE COMMISSIONER OF EDUCATION A SPECIAL FUND TO BE KNOWN  AS
THE CHILDREN'S OUNCE OF PREVENTION FUND.
  2.  SUCH  FUND  SHALL  CONSIST  OF  MONEYS PAID THERETO FROM THE STOCK
TRANSFER  TAX  FUND  AS  PROVIDED  IN  SUBDIVISION   FOUR   OF   SECTION
NINETY-TWO-B OF THIS ARTICLE AND ALL OTHER MONEYS APPROPRIATED, CREDITED
OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW.

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  3. THE MONEYS IN THIS FUND SHALL BE DIRECTED TO SCHOOL DISTRICTS WHICH
RECEIVE  EXTRAORDINARY  NEEDS AID PURSUANT TO SECTION THIRTY-SIX HUNDRED
TWO OF THE EDUCATION LAW, FOR  SERVICES  AND  EXPENSES  ASSOCIATED  WITH
PROGRAMS  DESIGNED TO HELP STUDENTS IMPROVE ACHIEVEMENT IN ORDER TO MEET
THE NEW HIGH LEARNING STANDARDS AND ASSESSMENTS ESTABLISHED BY THE BOARD
OF  REGENTS  IN  ACCORDANCE  WITH  A  DISTRICT  PLAN  TO ASSIST STUDENTS
THROUGH: (A) THE PROVISION OF DIRECT INSTRUCTIONAL SERVICES TO STUDENTS;
(B) THE PROVISION OF APPROPRIATE PROFESSIONAL  DEVELOPMENT  SERVICES  TO
TEACHERS;  (C)  THE  DEVELOPMENT  AND  SHARING OF INNOVATIVE EDUCATIONAL
PRACTICES; AND (D) THE REDUCTION OF  CLASS  SIZE.  THE  COMMISSIONER  OF
EDUCATION  SHALL  PROVIDE FOR THE APPORTIONMENT OF MONEYS FROM THIS FUND
DIRECTLY TO QUALIFYING SCHOOL DISTRICTS AS SHALL BE DETERMINED  BY  SUCH
COMMISSIONER.
  4.  MONIES  SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF
THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY  THE  COMMISSIONER
OF EDUCATION.
  5.  TO  THE  EXTENT  PRACTICABLE,  THE COMMISSIONER OF EDUCATION SHALL
ENSURE THAT ALL MONIES RECEIVED DURING A FISCAL YEAR ARE EXPENDED  PRIOR
TO THE END OF THAT FISCAL YEAR.
  S 5. This act shall take effect September 1, 2013.