S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5242--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              March 16, 2017
                                ___________
 
 Introduced  by  Sens. FUNKE, AKSHAR, CROCI, DeFRANCISCO, GOLDEN, HELMING
   -- read twice and ordered printed, and when printed to be committed to
   the Committee on Investigations and Government Operations -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee

 AN ACT to amend the tax law, in relation to thresholds for  establishing
   presence,  residency  or  doing business in the state for out-of-state
   companies including affiliates of in-state companies that  temporarily
   provide  resources  and personnel in the state during a state of emer-
   gency declared by the governor or the President of the United States
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The tax law is amended by adding a new article 42 to read
 as follows:
                                ARTICLE 42
      FACILITATING BUSINESS RAPID RESPONSE TO STATE DECLARED DISASTER
 SECTION 3100. SHORT TITLE.
         3101. DEFINITIONS.
         3102. BUSINESS AND EMPLOYEE STATUS DURING DISASTER PERIOD.
         3103. TRANSACTION TAXES AND FEES.
         3104. BUSINESS OR EMPLOYEE ACTIVITY AFTER DISASTER PERIOD.
         3105. NOTIFICATION  OF  OUT-OF-STATE  BUSINESS  DURING  DISASTER
                 PERIOD.
         3106. NOTIFICATION OF INTENT TO REMAIN IN STATE.
         3107. TAX EXEMPT OVERTIME EARNINGS.
         3108. SEVERABILITY.
   §  3100.  SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
 THE "FACILITATING BUSINESS RAPID RESPONSE TO  STATE  DECLARED  DISASTERS
 ACT OF 2017".
   § 3101. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10662-03-7

 S. 5242--A                          2
 
   1. "REGISTERED BUSINESS IN THE STATE" (OR "REGISTERED BUSINESS") MEANS
 A  BUSINESS  ENTITY  THAT  IS CURRENTLY REGISTERED TO DO BUSINESS IN THE
 STATE PRIOR TO THE DECLARED STATE DISASTER OR EMERGENCY.
   2.  "OUT-OF-STATE  BUSINESS" MEANS A BUSINESS ENTITY THAT HAS NO PRES-
 ENCE IN THE STATE AND CONDUCTS NO BUSINESS IN THE STATE  WHOSE  SERVICES
 ARE REQUESTED BY A REGISTERED BUSINESS OR BY A STATE OR LOCAL GOVERNMENT
 FOR  PURPOSES  OF  PERFORMING  DISASTER OR EMERGENCY RELATED WORK IN THE
 STATE. OUT-OF-STATE BUSINESS SHALL ALSO INCLUDE A BUSINESS  ENTITY  THAT
 IS  AFFILIATED  WITH THE REGISTERED BUSINESS IN THE STATE SOLELY THROUGH
 COMMON OWNERSHIP. THE OUT-OF-STATE BUSINESS HAS NO REGISTRATIONS OR  TAX
 FILINGS  OR  NEXUS  IN THE STATE PRIOR TO THE DECLARED STATE DISASTER OR
 EMERGENCY.
   3. "OUT-OF-STATE EMPLOYEE" MEANS AN EMPLOYEE WHO DOES NOT WORK IN  THE
 STATE,  EXCEPT FOR DISASTER OR EMERGENCY RELATED WORK, DURING THE DISAS-
 TER PERIOD.
   4. "CRITICAL INFRASTRUCTURE" MEANS PROPERTY  AND  EQUIPMENT  OWNED  OR
 USED  BY  COMMUNICATIONS NETWORKS, ELECTRIC GENERATION, TRANSMISSION AND
 DISTRIBUTION SYSTEMS, GAS DISTRIBUTION  SYSTEMS,  WATER  PIPELINES,  AND
 RELATED  SUPPORT  FACILITIES THAT SERVICE MULTIPLE CUSTOMERS OR CITIZENS
 INCLUDING, BUT NOT LIMITED TO, REAL AND PERSONAL PROPERTY SUCH AS BUILD-
 INGS, OFFICES, LINES, POLES, PIPES, STRUCTURES AND EQUIPMENT.
   5. "DECLARED STATE DISASTER OR EMERGENCY" MEANS A DISASTER OR EMERGEN-
 CY EVENT (A) FOR WHICH THE GOVERNOR HAS DECLARED A STATE  OF  EMERGENCY,
 (B)  FOR WHICH A PRESIDENTIAL DECLARATION OF A FEDERAL MAJOR DISASTER OR
 EMERGENCY HAS BEEN ISSUED, OR (C)  OTHER  DISASTER  OR  EMERGENCY  EVENT
 WITHIN THE STATE FOR WHICH A GOOD FAITH RESPONSE EFFORT IS REQUIRED, AND
 FOR  WHICH  THE  DIRECTOR OF THE STATE OFFICE OF EMERGENCY MANAGEMENT IS
 GIVEN NOTIFICATION FROM THE REGISTERED BUSINESS AND SUCH DIRECTOR DESIG-
 NATES SUCH EVENT  AS  A  DISASTER  OR  EMERGENCY  THEREBY  INVOKING  THE
 PROVISIONS OF THIS ARTICLE.
   6. "DISASTER PERIOD" MEANS A PERIOD THAT BEGINS WITHIN TEN DAYS OF THE
 FIRST  DAY  OF THE GOVERNOR'S DECLARATION OR THE PRESIDENT'S DECLARATION
 (WHICHEVER OCCURS FIRST) AND THAT EXTENDS FOR A PERIOD OF SIXTY CALENDAR
 DAYS AFTER THE END OF THE DECLARED DISASTER OR EMERGENCY PERIOD, OR  FOR
 ANY LONGER PERIOD AUTHORIZED BY THE COMMISSIONER.
   7.  "DISASTER  OR EMERGENCY RELATED WORK" MEANS REPAIRING, RENOVATING,
 INSTALLING, BUILDING, RENDERING SERVICES OR  OTHER  BUSINESS  ACTIVITIES
 THAT  RELATE  TO CRITICAL INFRASTRUCTURE THAT HAS BEEN DAMAGED, IMPAIRED
 OR DESTROYED BY THE DECLARED STATE DISASTER OR EMERGENCY.
   § 3102. BUSINESS AND EMPLOYEE STATUS DURING  DISASTER  PERIOD.  1.  AN
 OUT-OF-STATE  BUSINESS  THAT  CONDUCTS  OPERATIONS  WITHIN THE STATE FOR
 PURPOSES OF PERFORMING WORK OR SERVICES  RELATED  TO  A  DECLARED  STATE
 DISASTER OR EMERGENCY DURING THE DISASTER PERIOD SHALL NOT BE CONSIDERED
 TO HAVE ESTABLISHED A LEVEL OF PRESENCE THAT WOULD REQUIRE THAT BUSINESS
 TO  REGISTER,  FILE  AND/OR  REMIT  STATE  OR  LOCAL TAXES OR THAT WOULD
 REQUIRE THAT BUSINESS OR ITS OUT-OF-STATE EMPLOYEES TO BE SUBJECT TO ANY
 STATE LICENSING OR REGISTRATION REQUIREMENTS.  THIS INCLUDES ANY AND ALL
 STATE OR LOCAL BUSINESS LICENSING OR REGISTRATION REQUIREMENTS OR  STATE
 AND  LOCAL  TAXES  OR  FEES  INCLUDING, BUT NOT LIMITED TO, UNEMPLOYMENT
 INSURANCE, SALES AND USE TAX OR AD VALOREM TAX ON EQUIPMENT BROUGHT INTO
 THE STATE TEMPORARILY FOR USE DURING THE DISASTER PERIOD AND THEN SUBSE-
 QUENTLY REMOVED FROM THE STATE.  FOR PURPOSES OF ANY STATE OR LOCAL  TAX
 ON  OR  MEASURED BY, IN WHOLE OR IN PART, NET OR GROSS INCOME, INCLUDING
 BASE AND OVERTIME PAY, OR RECEIPTS, ALL  ACTIVITY  OF  THE  OUT-OF-STATE
 BUSINESS  THAT IS CONDUCTED IN THIS STATE PURSUANT TO THIS ARTICLE SHALL
 NOT BE TREATED AS OCCURRING IN THIS STATE WITH  RESPECT  TO  ANY  FILING

 S. 5242--A                          3
 
 REQUIREMENTS FOR SUCH TAX INCLUDING THE FILING REQUIRED FOR A UNITARY OR
 COMBINED  GROUP  OF WHICH THE OUT-OF-STATE BUSINESS MAY BE A PART. ALSO,
 FOR THE PURPOSES  OF  APPORTIONING  INCOME,  REVENUE,  OR  RECEIPTS  THE
 PERFORMANCE  BY  AN  OUT-OF-STATE  BUSINESS OF ANY DISASTER OR EMERGENCY
 RELATED WORK SHALL NOT BE SOURCED TO OR SHALL NOT  OTHERWISE  IMPACT  OR
 INCREASE  THE AMOUNT OF INCOME, REVENUE, OR RECEIPTS APPORTIONED TO THIS
 STATE.
   2. ANY OUT-OF-STATE  EMPLOYEE  AS  DEFINED  IN  SUBDIVISION  THREE  OF
 SECTION  THIRTY-ONE  HUNDRED ONE OF THIS ARTICLE SHALL NOT BE CONSIDERED
 TO HAVE ESTABLISHED RESIDENCY OR A PRESENCE  IN  THE  STATE  THAT  WOULD
 REQUIRE  THAT  PERSON  OR  THAT PERSON'S EMPLOYER TO FILE AND PAY INCOME
 TAXES OR TO BE SUBJECTED TO TAX WITHHOLDINGS OR  TO  FILE  AND  PAY  ANY
 OTHER  STATE  OR  LOCAL  TAX  OR  FEE  DURING  THE DISASTER PERIOD. THIS
 INCLUDES ANY RELATED STATE OR LOCAL EMPLOYER WITHHOLDING AND  REMITTANCE
 OBLIGATIONS FOR ANY OUT-OF-STATE EMPLOYEE'S BASE AND OVERTIME PAY.
   §  3103.  TRANSACTION TAXES AND FEES. OUT-OF-STATE BUSINESSES AND OUT-
 OF-STATE EMPLOYEES SHALL BE REQUIRED TO PAY TRANSACTION TAXES  AND  FEES
 INCLUDING  BUT NOT LIMITED TO FUEL TAXES OR SALES/USE TAXES ON MATERIALS
 OR SERVICES SUBJECT TO SALES/USE TAX, HOTEL TAXES, CAR RENTAL  TAXES  OR
 FEES  THAT THE OUT-OF-STATE AFFILIATED BUSINESS OR OUT-OF-STATE EMPLOYEE
 PURCHASES FOR USE OR CONSUMPTION IN THE STATE DURING THE DISASTER  PERI-
 OD, UNLESS SUCH TAXES ARE OTHERWISE EXEMPTED DURING A DISASTER PERIOD.
   §  3104. BUSINESS OR EMPLOYEE ACTIVITY AFTER DISASTER PERIOD. ANY OUT-
 OF-STATE BUSINESS OR OUT-OF-STATE EMPLOYEE THAT  REMAINS  IN  THE  STATE
 AFTER  THE  DISASTER  PERIOD  WILL  BECOME SUBJECT TO THE STATE'S NORMAL
 STANDARDS FOR ESTABLISHING PRESENCE, RESIDENCY OR DOING BUSINESS IN  THE
 STATE AND WILL THEREFORE BECOME RESPONSIBLE FOR ANY BUSINESS OR EMPLOYEE
 TAX REQUIREMENTS THAT ENSUE.
   §  3105. NOTIFICATION OF OUT-OF-STATE BUSINESS DURING DISASTER PERIOD.
 1. THE OUT-OF-STATE BUSINESS THAT ENTERS THE STATE SHALL, UPON  REQUEST,
 PROVIDE  THE DEPARTMENT A STATEMENT THAT IT IS IN THE STATE FOR PURPOSES
 OF RESPONDING TO  THE  DISASTER  OR  EMERGENCY,  WHICH  STATEMENT  SHALL
 INCLUDE  THE  BUSINESS'  NAME,  STATE  OF  DOMICILE,  PRINCIPAL BUSINESS
 ADDRESS, FEDERAL TAX IDENTIFICATION NUMBER, DATE OF ENTRY,  AND  CONTACT
 INFORMATION.
   2. A REGISTERED BUSINESS IN THE STATE SHALL, UPON REQUEST, PROVIDE THE
 INFORMATION  REQUIRED  IN SUBDIVISION ONE OF THIS SECTION FOR ANY AFFIL-
 IATE THAT ENTERS THE STATE THAT IS AN OUT-OF-STATE BUSINESS. THE NOTIFI-
 CATION SHALL ALSO INCLUDE CONTACT INFORMATION FOR THE  REGISTERED  BUSI-
 NESS IN THE STATE.
   §  3106.  NOTIFICATION  OF  INTENT TO REMAIN IN STATE. AN OUT-OF-STATE
 BUSINESS OR AN OUT-OF-STATE EMPLOYEE THAT REMAINS IN THE STATE AFTER THE
 DISASTER PERIOD SHALL COMPLETE STATE AND LOCAL  REGISTRATION,  LICENSING
 AND  FILING  REQUIREMENTS  THAT  ENSUE  AS  A RESULT OF ESTABLISHING THE
 REQUISITE BUSINESS PRESENCE OR RESIDENCY IN THE STATE  APPLICABLE  UNDER
 THE EXISTING RULES.
   §  3107.  TAX EXEMPT OVERTIME EARNINGS. ANY INCOME OF A NEW YORK RESI-
 DENT INDIVIDUAL  WHICH  IS  ATTRIBUTABLE  TO  OVERTIME  HOURS  DURING  A
 DECLARED  STATE DISASTER OR EMERGENCY AND WHICH IS DISASTER OR EMERGENCY
 RELATED WORK, AS SUCH TERMS ARE DEFINED IN THIS ARTICLE, SHALL BE EXEMPT
 FROM TAXATION UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER.
   § 3108. SEVERABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH,  SECTION  OR
 PART  OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURIS-
 DICTION TO BE INVALID, THE JUDGMENT SHALL NOT AFFECT, IMPAIR, OR INVALI-
 DATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN  ITS  OPERATION  TO
 THE  CLAUSE,  SENTENCE,  PARAGRAPH,  SECTION  OR  PART  THEREOF DIRECTLY

 S. 5242--A                          4
 
 INVOLVED IN THE CONTROVERSY  IN  WHICH  THE  JUDGMENT  SHALL  HAVE  BEEN
 RENDERED.
   §  2.  This  act shall take effect immediately. Provided, however, the
 commissioner of the department of taxation and finance is authorized  to
 promulgate  any  rules  or  regulations,  and develop and issue forms or
 online processes necessary for the timely implementation of this act.