S T A T E O F N E W Y O R K
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8576
I N A S S E M B L Y
January 23, 2014
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Introduced by M. of A. RUSSELL -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to modifications increasing
federalized itemized deductions for removing underground home heating
oil storage tanks; and to amend the navigation law, in relation to
claims against insurers for oil spills from underground heating oil
tanks and to amend the tax law, in relation to establishing a residen-
tial fund oil storage tank credit and providing for the repeal of
certain provisions upon expiration thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subsection (d) of section 615 of the tax law is amended by
adding a new paragraph 5 to read as follows:
(5) AN AMOUNT, NOT TO EXCEED FIFTY PERCENT OF THE AMOUNT EXPENDED BY A
TAXPAYER WHO IS THE OWNER OF A ONE, TWO OR THREE FAMILY HOME WHO
PROMOTES ENVIRONMENTAL QUALITY THROUGH THE REMOVAL OF AN UNDERGROUND
HOME HEATING OIL STORAGE TANK AND THE REPLACEMENT OF SUCH TANK WITH AN
ABOVE GROUND HOME HEATING OIL STORAGE TANK OR ANOTHER SOURCE OF HOME
HEATING. THIS DEDUCTION IS LIMITED TO ONE THOUSAND DOLLARS IN ANY ONE
YEAR.
S 2. Section 190 of the navigation law, as added by chapter 845 of the
laws of 1977, is amended to read as follows:
S 190. Claims against insurers. (A) Any claims for costs of cleanup
and removal, civil penalties or damages by the state and any claim for
damages by any injured person, may be brought directly against the bond,
the insurer, or any other person providing evidence of financial respon-
sibility.
(B) ALL HOMEOWNERS' POLICIES OF INSURANCE IN THIS STATE WHICH SHALL
INSURE AGAINST DAMAGE TO PROPERTY SHALL CLEARLY PROVIDE THAT THE ATTEND-
ANT COSTS OF REMEDIATING THE CONSEQUENCES OF AN OIL SPILL OR LEAKAGE
FROM THE INSURED'S UNDERGROUND HEATING OIL TANK SHALL CONSTITUTE PROPER-
TY DAMAGE AND SHALL BE INSURABLE WITHIN THE MEANING OF THE GENERAL
LIABILITY PORTIONS OF SUCH INSURANCE POLICY AND THE RISK OF DAMAGES
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13108-01-3
A. 8576 2
CAUSED BY SUCH OIL SPILLS MAY NOT BE AN EXCLUSION IN ANY SUCH POLICY
ISSUED IN THE STATE EXCEPT IF IT IS A NAMED PERILS ONLY POLICY.
(C) ALL HOMEOWNERS' POLICIES OF INSURANCE IN THIS STATE WHICH SHALL
INSURE AGAINST DAMAGE TO PROPERTY SHALL CLEARLY PROVIDE THAT THE ATTEND-
ANT COSTS OF REMEDIATING THE CONSEQUENCES OF AN OIL SPILL OR LEAKAGE
FROM THE INSURED'S HEATING OIL TANK WHICH IS NOT UNDERGROUND WHEN THE
DAMAGE IS NOT THE RESULT OF THE FAILURE OF THE HOMEOWNER TO REASONABLY
INSPECT OR TO HIRE SOMEONE TO REASONABLY INSPECT HIS OR HER OIL TANK
WHEN THE OPPORTUNITY TO DO SO EXISTS, SHALL CONSTITUTE PROPERTY DAMAGE
AND SHALL BE INSURABLE WITHIN THE MEANING OF THE GENERAL LIABILITY
PORTIONS OF SUCH INSURANCE POLICY AND THE RISK OF DAMAGES CAUSED BY SUCH
OIL SPILLS MAY NOT BE AN EXCLUSION IN ANY SUCH POLICY ISSUED IN THE
STATE EXCEPT IF IT IS A NAMED PERILS ONLY POLICY.
(D) NON-COMPLIANCE WITH THE PROVISIONS OF THIS SUBDIVISION REQUIRING
THE REASONABLE INSPECTION OF A RESIDENTIAL OIL TANK SHALL NOT BE ADMIS-
SIBLE AS EVIDENCE IN ANY CIVIL ACTION IN A COURT OF LAW IN REGARD TO THE
ISSUE OF LIABILITY BUT MAY BE INTRODUCED INTO EVIDENCE IN MITIGATION OF
DAMAGES PROVIDED THE PARTY INTRODUCING SAID EVIDENCE HAS PLEADED SUCH
NON-COMPLIANCE AS AN AFFIRMATIVE DEFENSE.
(E) NOTHING IN THIS SUBDIVISION SHALL BE CONSTRUED TO LIMIT ANY
PRE-EXISTING RIGHT, WHETHER ACTUAL OR IMPLIED, IN WHICH THE INSURED MAY
HAVE HAD COMPENSATION FROM THE INSURER FOR DAMAGE TO PROPERTY FROM AN
OIL SPILL OR LEAKAGE FROM AN UNDERGROUND HEATING OIL TANK AND THE
ATTENDANT COSTS OF REMEDIATING THE CONSEQUENCES OF SUCH OIL SPILL OR
LEAKAGE.
S 3. Subsections (yy) and (zz) of section 606 of the tax law, as
relettered by section 5 of part H of chapter 1 of the laws of 2003, are
relettered subsections (yyy) and (zzz) and a new subsection (xx) is
added to read as follows:
(XX) RESIDENTIAL FUEL OIL STORAGE TANK CREDIT. (1) A TAXPAYER SHALL BE
ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE IN AN AMOUNT
NOT TO EXCEED FIVE HUNDRED DOLLARS, FOR THE REMOVAL OF AN EXISTING
UNPROTECTED BURIED FUEL OIL TANK AND THE INSTALLATION OF A FIBERGLASS OR
FIBERGLASS LINED BURIED HEATING FUEL OIL STORAGE TANK, OR AN ABOVE
GROUND OR INTERIOR TANK, USED TO PROVIDE HEATING FUEL FOR A SINGLE FAMI-
LY HOME, WHICH MEETS THE REQUIREMENTS OF ARTICLE TWELVE OF THE NAVIGA-
TION LAW RELATING TO THE CONTAINMENT OF PETROLEUM.
(2) THE HOMEOWNER CREDIT DESCRIBED IN PARAGRAPH ONE OF THIS SUBSECTION
MAY ONLY BE TAKEN ONCE AND SHALL BE ALLOWED ONLY FOR A RESIDENT'S PRIMA-
RY DOMICILE.
S 4. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law; provided, however,
that sections two and three of this act shall expire and be deemed
repealed two years after such effective date.