Senate Bill S6310

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

                                  6310

                            I N  S E N A T E

                            January 13, 2014
                               ___________

Introduced  by  Sen. MARTINS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Commerce, Economic  Devel-
  opment and Small Business

AN  ACT to amend the economic development law, the tax law and the labor
  law, in relation to authorizing the creation of small business tax-de-
  ferred savings accounts

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

  Section  1.  The  economic  development law is amended by adding a new
section 139 to read as follows:
  S 139. SMALL BUSINESS TAX-DEFERRED  SAVINGS  ACCOUNTS.  1.  ANY  SMALL
BUSINESS  SHALL  BE  AUTHORIZED  TO ESTABLISH AND DEPOSIT PROFITS INTO A
SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT.
  2. THE MONIES IN SUCH TAX-DEFERRED SAVINGS ACCOUNTS MAY  BE  WITHDRAWN
TAX  FREE ONLY WHEN THE COMMISSIONER OF LABOR DECLARES AN ECONOMIC DOWN-
TURN PURSUANT TO SUBDIVISION FIFTEEN OF SECTION TWENTY-ONE OF THE  LABOR
LAW.
  3.  IF  A    SMALL  BUSINESS  WITHDRAWS FUNDS FROM SUCH A TAX-DEFERRED
SAVINGS ACCOUNT WHEN AN ECONOMIC DOWNTURN HAS NOT  BEEN  DECLARED,  SUCH
FUNDS WITHDRAWN SHALL BE TAXABLE AS INCOME UNDER THE TAX LAW.
  S 2. Section 209 of the tax law is amended by adding a new subdivision
12 to read as follows:
  12.  FOR  ANY  TAXABLE  YEAR  BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND FOURTEEN, ANY SMALL BUSINESS, AS SUCH TERM IS DEFINED  PURSUANT
TO SECTION ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW, SHALL
BE  EXEMPT FROM ALL TAXES IMPOSED PURSUANT TO THIS ARTICLE FOR ANY WITH-
DRAWAL FROM A SMALL BUSINESS TAX-DEFERRED  SAVINGS  ACCOUNT  ESTABLISHED
PURSUANT  TO SECTION ONE HUNDRED THIRTY-NINE OF THE ECONOMIC DEVELOPMENT
LAW AND MADE DURING AN ECONOMIC DOWNTURN DECLARED BY THE COMMISSIONER OF
LABOR PURSUANT TO SUBDIVISION FIFTEEN OF SECTION TWENTY-ONE OF THE LABOR
LAW.
  S 3. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 41 to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13473-01-4
              

S. 6310                             2

  (41) ANY WITHDRAWAL FROM A SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT
ESTABLISHED PURSUANT TO SECTION ONE HUNDRED THIRTY-NINE OF THE  ECONOMIC
DEVELOPMENT LAW MADE DURING AN ECONOMIC DOWNTURN DECLARED BY THE COMMIS-
SIONER OF LABOR PURSUANT TO SUBDIVISION FIFTEEN OF SECTION TWENTY-ONE OF
THE LABOR LAW.
  S  4.  Section 21 of the labor law is amended by adding a new subdivi-
sion 15 to read as follows:
  15. SHALL CALCULATE AND PUBLISH, ON OR BEFORE  THE  FIFTEENTH  DAY  OF
EACH  MONTH,  A COMPOSITE INDEX OF BUSINESS CYCLE INDICATORS. SUCH INDEX
SHALL BE CALCULATED USING MONTHLY DATA ON  NEW  YORK  STATE  EMPLOYMENT,
TOTAL  MANUFACTURING  HOURS  WORKED,  AND  UNEMPLOYMENT  PREPARED BY THE
DEPARTMENT OR ITS SUCCESSOR AGENCY, AND TOTAL SALES TAX COLLECTED NET OF
LAW CHANGES, PREPARED BY THE DEPARTMENT OF TAXATION AND FINANCE  OR  ITS
SUCCESSOR AGENCY. SUCH INDEX SHALL BE CONSTRUCTED IN ACCORDANCE WITH THE
PROCEDURES  FOR  CALCULATING  COMPOSITE INDEXES ISSUED BY THE CONFERENCE
BOARD OR ITS SUCCESSOR ORGANIZATION, AND  ADJUSTED  FOR  SEASONAL  VARI-
ATIONS  IN ACCORDANCE WITH THE PROCEDURES ISSUED BY THE CENSUS BUREAU OF
THE UNITED STATES DEPARTMENT OF COMMERCE OR ITS SUCCESSOR AGENCY. IF THE
COMPOSITE INDEX DECLINES FOR FIVE CONSECUTIVE MONTHS,  THE  COMMISSIONER
OF  LABOR  SHALL  NOTIFY  THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY, THE
TEMPORARY PRESIDENT OF THE SENATE,  AND  THE  MINORITY  LEADERS  OF  THE
ASSEMBLY AND THE SENATE THAT AN ECONOMIC DOWNTURN HAS BEEN DECLARED.
  S 5. This act shall take effect immediately.