S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6569
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 4, 2017
                                ___________
 
 Introduced  by Sen. FLANAGAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the education law, in relation to  charter  schools;  to
   amend  chapter 345 of the laws of 2009, amending the education law and
   other laws relating to the New York city board of education,  chancel-
   lor,  community councils and community superintendents, in relation to
   the effectiveness thereof; to amend chapter 91 of the  laws  of  2002,
   amending  the  education law and other laws relating to reorganization
   of the New York city school construction authority, board of education
   and community boards, in relation to the effectiveness thereof; and to
   amend the tax law and the education law, in relation  to  implementing
   the education affordability tax credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 12 of section 17 of chapter 345 of the laws  of
 2009, amending the education law and other laws relating to the New York
 city  board  of  education, chancellor, community councils and community
 superintendents, as amended by section 2 of part O of chapter 73 of  the
 laws of 2016, is amended to read as follows:
   12. any provision in sections one, two, three, four, five, six, seven,
 eight,  nine,  ten  and  eleven  of this act not otherwise set to expire
 pursuant to section 34 of chapter 91 of the laws of 2002, as amended, or
 section 17 of chapter 123 of the laws of 2003, as amended, shall  expire
 and be deemed repealed June 30, [2017] 2022.
   §  1-a.  Section  34  of  chapter 91 of the laws of 2002, amending the
 education law and other laws relating to reorganization of the New  York
 city  school  construction  authority,  board of education and community
 boards, as amended by section 1 of part O of chapter 73 of the  laws  of
 2016, is amended to read as follows:
   § 34. This act shall take effect July 1, 2002; provided, that sections
 one  through  twenty, twenty-four, and twenty-six through thirty of this
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13015-06-7

 S. 6569                             2
 
 act shall expire and be deemed repealed June 30, [2017]  2022  provided,
 further,  that notwithstanding any provision of article 5 of the general
 construction law, on June 30, [2017] 2022 the provisions of subdivisions
 3,  5,  and 8, paragraph b of subdivision 13, subdivision 14, paragraphs
 b, d, and e of subdivision 15, and subdivisions 17  and  21  of  section
 2554  of  the  education  law  as repealed by section three of this act,
 subdivision 1 of section 2590-b of the  education  law  as  repealed  by
 section  six  of  this  act,  paragraph  (a) of subdivision 2 of section
 2590-b of the education law as repealed by section seven  of  this  act,
 section 2590-c of the education law as repealed by section eight of this
 act, paragraph c of subdivision 2 of section 2590-d of the education law
 as  repealed by section twenty-six of this act, subdivision 1 of section
 2590-e of the education law as repealed by section twenty-seven of  this
 act,  subdivision  28 of section 2590-h of the education law as repealed
 by section twenty-eight of this act, subdivision 30 of section 2590-h of
 the education law as repealed by section twenty-nine of this act, subdi-
 vision 30-a of section 2590-h  of  the  education  law  as  repealed  by
 section  thirty  of  this  act  shall  be  revived  and  be read as such
 provisions existed in law on the date immediately preceding  the  effec-
 tive  date of this act; provided, however, that sections seven and eight
 of this act shall take effect on November  30,  2003;  provided  further
 that  the  amendments to subdivision 25 of section 2554 of the education
 law made by section two of this act shall be subject to  the  expiration
 and  reversion of such subdivision pursuant to section 12 of chapter 147
 of the laws of 2001, as amended, when upon such date the  provisions  of
 section four of this act shall take effect.
   §  2.   Subdivision 9 of section 2852 of the education law, as amended
 by section 2 of subpart A of part B of chapter 20 of the laws  of  2015,
 is amended to read as follows:
   9. The total number of charters issued pursuant to this article state-
 wide  shall  not  exceed  [four hundred sixty] FIVE HUNDRED TEN. (a) All
 charters issued on or after July first, two thousand fifteen and counted
 toward the numerical limits established by  this  subdivision  shall  be
 issued by the board of regents upon application directly to the board of
 regents  or  on the recommendation of the board of trustees of the state
 university of New York pursuant to a competitive process  in  accordance
 with  subdivision  nine-a  of  this section; PROVIDED THAT A CITY OF ONE
 MILLION OR MORE SHALL RECEIVE NO MORE THAN FORTY PERCENT OF THE  REMAIN-
 ING  CHARTERS  AVAILABLE IN EACH YEAR. [Fifty of such charters issued on
 or after July first, two thousand fifteen, and no more, shall be granted
 to a charter for a school to be located in a city having a population of
 one million or more.] The failure of any body to issue  the  regulations
 authorized  pursuant to this article shall not affect the authority of a
 charter entity to propose a charter to the board of regents or the board
 of regents' authority to grant such charter. A conversion of an existing
 public school to a charter school, or the  renewal  or  extension  of  a
 charter  approved by any charter entity, shall not be counted toward the
 numerical limits established by this subdivision.
   (A-1) A CHARTER SCHOOL WHOSE CHARTER HAS BEEN SURRENDERED, REVOKED  OR
 TERMINATED,  INCLUDING  A CHARTER THAT HAS NOT BEEN RENEWED BY ACTION OF
 ITS CHARTER ENTITY, SHALL NOT BE COUNTED  TOWARD  THE  NUMERICAL  LIMITS
 ESTABLISHED  BY  THIS  SUBDIVISION  AND INSTEAD SHALL BE RETURNED TO THE
 POOL IT WAS ORIGINALLY ISSUED FROM AND MAY BE REISSUED BY THE  BOARD  OF
 REGENTS  EITHER  UPON APPLICATION DIRECTLY TO THE BOARD OF REGENTS OR ON
 THE RECOMMENDATION OF THE BOARD OF TRUSTEES OF THE STATE  UNIVERSITY  OF

 S. 6569                             3
 
 NEW  YORK  PURSUANT TO A COMPETITIVE PROCESS IN ACCORDANCE WITH SUBDIVI-
 SION NINE-A OF THIS SECTION.
   (b)  A charter that has been surrendered, revoked or terminated [on or
 before July first, two thousand fifteen], including a charter  that  has
 not been renewed by action of its charter entity, may be reissued pursu-
 ant  to paragraph (a) of this subdivision by the board of regents either
 upon application directly to the board of regents or on the  recommenda-
 tion of the board of trustees of the state university of New York pursu-
 ant  to  a  competitive process in accordance with subdivision nine-a of
 this section. Provided that such reissuance shall not be counted  toward
 the  statewide  numerical  limit  established  by this subdivision[, and
 provided further that no more than twenty-two charters may  be  reissued
 pursuant to this paragraph].
   (c)  For  purposes  of determining the total number of charters issued
 within  the  numerical  limits  established  by  this  subdivision,  the
 approval date of the charter entity shall be the determining factor.
   (d) Notwithstanding any provision of this article to the contrary, any
 charter  authorized  to  be issued by chapter fifty-seven of the laws of
 two thousand seven effective July first, two thousand  seven,  and  that
 remains  unissued  as of July first, two thousand fifteen, may be issued
 pursuant to the provisions of law applicable to a charter authorized  to
 be  issued  by such chapter in effect as of June fifteenth, two thousand
 fifteen[; provided however that  nothing  in  this  paragraph  shall  be
 construed  to increase the numerical limit applicable to a city having a
 population of one million or more as provided in paragraph (a)  of  this
 subdivision, as amended by a chapter of the laws of two thousand fifteen
 which added this paragraph].
   § 3. Paragraph (a-1) of subdivision 3 of section 2854 of the education
 law, as amended by section 1 of subpart A of part B of chapter 20 of the
 laws of 2015, is amended to read as follows:
   (a-1)  The  board  of  trustees  of  a charter school shall employ and
 contract  with  necessary  teachers,  administrators  and  other  school
 personnel.  Such  teachers  shall  be  certified  in accordance with the
 requirements applicable to other public schools; provided, however, that
 TEACHERS EMPLOYED BY A HIGH-PERFORMING  PUBLIC  CHARTER  SCHOOL  WITH  A
 RIGOROUS  TEACHER  TRAINING  PROGRAM  WILL  HAVE THREE SCHOOL YEARS FROM
 THEIR EMPLOYMENT START  DATE  BEFORE  THEY  MUST  SATISFY  CERTIFICATION
 REQUIREMENTS;  AND  a charter school may employ as teachers (i) uncerti-
 fied teachers with at least three years of elementary, middle or second-
 ary classroom teaching experience; (ii) tenured or tenure track  college
 faculty;  (iii)  individuals  with  two years of satisfactory experience
 through the Teach for America program; and (iv) individuals who  possess
 exceptional  business,  professional,  artistic,  athletic,  or military
 experience, provided, however, that such teachers described  in  clauses
 (i), (ii), (iii), and (iv) of this paragraph shall not in total comprise
 more  than  the sum of: (A) thirty per centum of the teaching staff of a
 charter school, or five teachers, whichever is [less] GREATER; plus  (B)
 five  teachers of mathematics, science, computer science, technology, or
 career and technical education; plus (C)  five  additional  teachers.  A
 teacher certified or otherwise approved by the commissioner shall not be
 included in the numerical limits established by the preceding sentence.
   §  3-a.   Subdivision 5 of section 2851 of the education law, as added
 by section 2 of part P of chapter 73 of the laws of 2016, is amended  to
 read as follows:
   5.    Notwithstanding  any provision of law, rule or regulation to the
 contrary [for a period of one year  from  the  effective  date  of  this

 S. 6569                             4

 subdivision],  a  charter  school approved by a charter entity listed in
 subdivision three of this section may apply at  any  time  [during  this
 period]  to another charter entity, defined in paragraph (a), (b) or (c)
 of subdivision three of this section to request such other charter enti-
 ty  to  oversee  and  supervise  such  charter school. All standards and
 requirements established in the original charter agreement shall  remain
 in  effect  until the scheduled expiration of such charter agreement and
 provided however that all obligations of the previous charter entity  to
 oversee and supervise a charter school shall terminate upon the transfer
 of  authorization  of  such  charter  school to a new charter entity, as
 defined in subdivision five of section twenty-eight hundred fifty-two of
 this article, and the previous charter entity shall provide in a  timely
 fashion  information  relevant to the charter as requested by such other
 charter entity. A charter school that seeks to change its charter entity
 must have met all other requirements of this article and  cannot  be  in
 violation  of  any  legal requirement, in probationary status, or slated
 for closure.
   § 4. The tax law is amended by adding a new  section  44  to  read  as
 follows:
   §  44.  EDUCATION  AFFORDABILITY TAX CREDIT.  (A) DEFINITIONS. FOR THE
 PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE SAME  DEFI-
 NITION AS PROVIDED FOR IN ARTICLE TWENTY-FIVE OF THE EDUCATION LAW:
   "AUTHORIZED CONTRIBUTION";
   "CONTRIBUTION";
   "EDUCATIONAL PROGRAM";
   "EDUCATIONAL SCHOLARSHIP ORGANIZATION";
   "ELIGIBLE PUPIL";
   "LOCAL EDUCATION FUND";
   "NONPUBLIC SCHOOL";
   "PUBLIC EDUCATION ENTITY";
   "PUBLIC SCHOOL";
   "QUALIFIED CONTRIBUTION";
   "QUALIFIED EDUCATOR";
   "QUALIFIED SCHOOL";
   "SCHOLARSHIP"; AND
   "SCHOOL IMPROVEMENT ORGANIZATION".
   (B)  ALLOWANCE  OF  CREDIT.  A  TAXPAYER  SUBJECT TO TAX UNDER ARTICLE
 NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL  BE  ALLOWED  CREDIT  AGAINST
 SUCH  TAX,  PURSUANT  TO THE PROVISIONS REFERENCED IN SUBDIVISION (L) OF
 THIS SECTION, WITH RESPECT TO QUALIFIED CONTRIBUTIONS  MADE  DURING  THE
 TAXABLE YEAR.
   (C)  AMOUNT  OF  CREDIT.  FOR  TAXPAYERS  WHOSE FEDERAL ADJUSTED GROSS
 INCOME IS LESS THAN THREE HUNDRED THOUSAND DOLLARS FOR THE TAXABLE  YEAR
 DURING WHICH SUCH TAXPAYER MADE AT LEAST ONE QUALIFIED CONTRIBUTION, THE
 AMOUNT  OF  THE  CREDIT  SHALL BE NINETY PERCENT OF THE TAXPAYER'S TOTAL
 QUALIFIED CONTRIBUTIONS, CAPPED AT EIGHT HUNDRED  SEVENTY-FIVE  THOUSAND
 DOLLARS.  FOR  TAXPAYERS  WHOSE FEDERAL ADJUSTED GROSS INCOME IS GREATER
 THAN OR EQUAL TO THREE HUNDRED THOUSAND DOLLARS  FOR  THE  TAXABLE  YEAR
 DURING WHICH SUCH TAXPAYER MADE AT LEAST ONE QUALIFIED CONTRIBUTION, THE
 AMOUNT  OF  CREDIT SHALL BE SEVENTY-FIVE PERCENT OF THE TAXPAYER'S TOTAL
 QUALIFIED CONTRIBUTIONS, CAPPED AT EIGHT HUNDRED  SEVENTY-FIVE  THOUSAND
 DOLLARS.    A  TAXPAYER  THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A
 LIMITED LIABILITY COMPANY OR SHAREHOLDER IN AN S  CORPORATION  SHALL  BE
 ALLOWED TO CLAIM ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNER-
 SHIP,  LIMITED  LIABILITY COMPANY OR S CORPORATION, PROVIDED THAT SUCH A

 S. 6569                             5
 
 TAXPAYER SHALL NOT CLAIM CREDIT IN EXCESS OF EIGHT HUNDRED  SEVENTY-FIVE
 THOUSAND DOLLARS.
   (D) INFORMATION TO BE POSTED ON THE DEPARTMENT'S WEBSITE.  THE COMMIS-
 SIONER SHALL MAINTAIN ON THE DEPARTMENT'S WEBSITE A RUNNING TOTAL OF THE
 AMOUNT  OF  AVAILABLE  CREDIT  FOR WHICH TAXPAYERS MAY APPLY PURSUANT TO
 THIS SECTION.  SUCH RUNNING TOTAL SHALL BE UPDATED  ON  A  DAILY  BASIS.
 ADDITIONALLY,  THE  COMMISSIONER  SHALL  MAINTAIN  ON  THE  DEPARTMENT'S
 WEBSITE A LIST OF THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL  EDUCATION
 FUNDS  AND  EDUCATIONAL  SCHOLARSHIP  ORGANIZATIONS  APPROVED  TO  ISSUE
 CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION
 LAW.  THE COMMISSIONER SHALL ALSO MAINTAIN ON THE DEPARTMENT'S WEBSITE A
 LIST OF PUBLIC EDUCATION  ENTITIES,  SCHOOL  IMPROVEMENT  ORGANIZATIONS,
 LOCAL  EDUCATION  FUNDS  AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS WHOSE
 APPROVAL TO ISSUE CERTIFICATES OF RECEIPT HAS BEEN  REVOKED  ALONG  WITH
 THE DATE OF REVOCATION.
   (E) APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES. PRIOR TO
 MAKING  A  CONTRIBUTION TO A PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT
 ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZA-
 TION, THE TAXPAYER SHALL APPLY TO  THE  DEPARTMENT  FOR  A  CONTRIBUTION
 AUTHORIZATION  CERTIFICATE FOR SUCH CONTRIBUTION. SUCH APPLICATION SHALL
 BE IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.  THE  DEPARTMENT
 MAY  ALLOW  TAXPAYERS  TO  MAKE  MULTIPLE APPLICATIONS ON THE SAME FORM,
 PROVIDED THAT EACH CONTRIBUTION LISTED  ON  SUCH  APPLICATION  SHALL  BE
 TREATED  AS  A  SEPARATE APPLICATION AND THAT THE DEPARTMENT SHALL ISSUE
 SEPARATE CONTRIBUTION AUTHORIZATION CERTIFICATES FOR EACH SUCH  APPLICA-
 TION.
   (F)  CONTRIBUTION  AUTHORIZATION CERTIFICATES. 1.  ISSUANCE OF CERTIF-
 ICATES.  THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIF-
 ICATES IN TWO PHASES. IN PHASE ONE, WHICH BEGINS ON  THE  FIRST  DAY  OF
 JANUARY  AND  ENDS  ON THE THIRTY-FIRST DAY OF JANUARY, THE COMMISSIONER
 SHALL ACCEPT APPLICATIONS FOR CONTRIBUTION  AUTHORIZATION  CERTIFICATES.
 COMMENCING AFTER THE FIFTH DAY OF FEBRUARY, THE COMMISSIONER SHALL ISSUE
 CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING
 PHASE ONE, PROVIDED THAT IF THE AGGREGATE TOTAL OF THE CONTRIBUTIONS FOR
 WHICH  APPLICATIONS  HAVE  BEEN  RECEIVED  DURING  PHASE ONE EXCEEDS THE
 AMOUNT OF THE CREDIT CAP IN SUBDIVISION (H) OF THIS SECTION, THEN  PHASE
 ONE  OF  THE  CREDIT CAP APPLICATION SHALL BE ALLOCATED IN TWO STEPS. IN
 STEP ONE, THE ALLOCATION SHALL EQUAL THE CONTRIBUTION CAP DIVIDED BY THE
 TOTAL NUMBER OF APPLICATIONS FOR  CONTRIBUTIONS,  ROUNDED  DOWN  TO  THE
 NEAREST  CENT.  EACH APPLICATION REQUESTING AN AMOUNT WHICH IS LESS THAN
 OR EQUAL TO THE ALLOCATION IN STEP ONE SHALL RECEIVE THE AMOUNT ON THEIR
 APPLICATION FOR CONTRIBUTION AND THE DIFFERENCE, WHICH SHALL BE REFERRED
 TO AS "EXCESS DISTRIBUTIONS" FOR THE PURPOSES OF THIS SUBDIVISION, SHALL
 BE AVAILABLE FOR ALLOCATION IN STEP TWO. EACH APPLICATION REQUESTING  AN
 AMOUNT WHICH EXCEEDS THE ALLOCATION IN STEP ONE SHALL BE ALLOCATED CRED-
 ITS  IN  STEP  TWO. IN STEP TWO, IF EXCESS DISTRIBUTIONS EQUAL ZERO THEN
 EACH APPLICATION SHALL RECEIVE THE  ALLOCATION  AMOUNT  FROM  STEP  ONE,
 OTHERWISE  EACH  APPLICATION SHALL RECEIVE AN AMOUNT EQUAL TO THE SUM OF
 THE (I) THE ALLOCATION AMOUNT IN STEP ONE AND (II) A PRO RATA  SHARE  OF
 AGGREGATE  EXCESS  DISTRIBUTIONS  BASED  ON  THE  DIFFERENCE BETWEEN THE
 AMOUNT ON THEIR APPLICATION FOR CONTRIBUTION AND THE ALLOCATION IN  STEP
 ONE.  FOR THE PURPOSES OF THIS SUBDIVISION, MULTIPLE APPLICATIONS BY THE
 SAME TAXPAYER SHALL BE TREATED AS ONE APPLICATION. IF THE CREDIT CAP  IS
 NOT  EXCEEDED,  PHASE  TWO  COMMENCES  ON FEBRUARY TWENTIETH AND ENDS ON
 OCTOBER THIRTY-FIRST. DURING PHASE  TWO  THE  COMMISSIONER  SHALL  ISSUE
 CONTRIBUTION  AUTHORIZATION  CERTIFICATES  ON  A  FIRST-COME FIRST SERVE

 S. 6569                             6
 
 BASIS BASED UPON THE DATE THE DEPARTMENT RECEIVED THE TAXPAYER'S  APPLI-
 CATION  FOR  SUCH CERTIFICATE.   CONTRIBUTION AUTHORIZATION CERTIFICATES
 FOR APPLICATIONS RECEIVED DURING PHASE ONE SHALL BE MAILED NO LATER THAN
 THE  TWENTIETH  DAY OF FEBRUARY. CONTRIBUTION AUTHORIZATION CERTIFICATES
 FOR APPLICATIONS RECEIVED DURING PHASE TWO SHALL BE MAILED  WITHIN  FIVE
 DAYS OF RECEIPT OF SUCH APPLICATIONS.
   2.  CONTRIBUTION AUTHORIZATION CERTIFICATE CONTENTS. EACH CONTRIBUTION
 AUTHORIZATION CERTIFICATE SHALL STATE (I) THE DATE SUCH CERTIFICATE  WAS
 ISSUED, (II) THE DATE BY WHICH THE AUTHORIZED CONTRIBUTION LISTED ON THE
 CERTIFICATE  MUST BE MADE, WHICH SHALL BE NO LATER THAN DECEMBER THIRTY-
 FIRST OF THE YEAR FOR WHICH THE CONTRIBUTION  AUTHORIZATION  CERTIFICATE
 WAS  ISSUED,  (III)  THE  AMOUNT  OF  AUTHORIZED  CONTRIBUTION, (IV) THE
 CERTIFICATE NUMBER, (V) THE TAXPAYER'S NAME AND ADDRESS, (VI)  THE  NAME
 AND ADDRESS OF THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA-
 TION,  LOCAL  EDUCATION  FUND OR EDUCATIONAL SCHOLARSHIP ORGANIZATION TO
 WHICH THE TAXPAYER MAY MAKE THE AUTHORIZED CONTRIBUTION, AND  (VII)  ANY
 OTHER INFORMATION THAT THE COMMISSIONER DEEMS NECESSARY.
   3.  NOTIFICATION  OF  THE  ISSUANCE  OF  A  CONTRIBUTION AUTHORIZATION
 CERTIFICATE. UPON THE ISSUANCE OF A CONTRIBUTION  AUTHORIZATION  CERTIF-
 ICATE  TO A TAXPAYER, THE COMMISSIONER SHALL NOTIFY THE PUBLIC EDUCATION
 ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR  EDUCA-
 TIONAL  SCHOLARSHIP  ORGANIZATION  OF  THE ISSUANCE OF SUCH CONTRIBUTION
 AUTHORIZATION CERTIFICATE.  SUCH  NOTIFICATION  SHALL  INCLUDE  (I)  THE
 TAXPAYER'S  NAME AND ADDRESS, (II) THE DATE SUCH CERTIFICATE WAS ISSUED,
 (III) THE DATE BY  WHICH  THE  AUTHORIZED  CONTRIBUTION  LISTED  IN  THE
 NOTIFICATION  MUST  BE  MADE  BY  THE  TAXPAYER,  (IV) THE AMOUNT OF THE
 AUTHORIZED CONTRIBUTION,  (V)  THE  CONTRIBUTION  AUTHORIZATION  CERTIF-
 ICATE'S  CERTIFICATE  NUMBER,  AND  (VI)  ANY OTHER INFORMATION THAT THE
 COMMISSIONER DEEMS NECESSARY.
   (G) CERTIFICATE OF RECEIPT. 1. IN GENERAL. NO PUBLIC EDUCATION ENTITY,
 SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR  EDUCATIONAL
 SCHOLARSHIP  ORGANIZATION  SHALL  ISSUE A CERTIFICATE OF RECEIPT FOR ANY
 CONTRIBUTION MADE BY A TAXPAYER UNLESS  SUCH  PUBLIC  EDUCATION  ENTITY,
 SCHOOL  IMPROVEMENT  ORGANIZATION,  LOCAL EDUCATION FUND, OR EDUCATIONAL
 SCHOLARSHIP ORGANIZATION HAS BEEN  APPROVED  TO  ISSUE  CERTIFICATES  OF
 RECEIPT  PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW. NO PUBLIC
 EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND,
 OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL  ISSUE  A  CERTIFICATE  OF
 RECEIPT  FOR A CONTRIBUTION MADE BY A TAXPAYER UNLESS SUCH PUBLIC EDUCA-
 TION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR
 EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  HAS  RECEIVED  NOTICE  FROM  THE
 DEPARTMENT THAT  THE  DEPARTMENT  ISSUED  A  CONTRIBUTION  AUTHORIZATION
 CERTIFICATE TO THE TAXPAYER FOR SUCH CONTRIBUTION.
   2. TIMELY CONTRIBUTION. IF A TAXPAYER MAKES AN AUTHORIZED CONTRIBUTION
 TO  THE  PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL
 EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SET FORTH ON THE
 CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO THE TAXPAYER  NO  LATER
 THAN  THE  DATE  BY WHICH SUCH AUTHORIZED CONTRIBUTION IS REQUIRED TO BE
 MADE, SUCH PUBLIC EDUCATION  ENTITY,  SCHOOL  IMPROVEMENT  ORGANIZATION,
 LOCAL  EDUCATION  FUND,  OR  EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL,
 WITHIN THIRTY DAYS OF RECEIPT OF THE AUTHORIZED CONTRIBUTION,  ISSUE  TO
 THE  TAXPAYER  A  CERTIFICATE OF RECEIPT; PROVIDED, HOWEVER, THAT IF THE
 TAXPAYER CONTRIBUTES AN AMOUNT THAT IS LESS THAN THE  AMOUNT  LISTED  ON
 THE  TAXPAYER'S  CONTRIBUTION  AUTHORIZATION  CERTIFICATE,  THE TAXPAYER
 SHALL NOT BE ISSUED A CERTIFICATE OF RECEIPT FOR SUCH CONTRIBUTION.

 S. 6569                             7
 
   3. CERTIFICATE OF RECEIPT CONTENTS. EACH CERTIFICATE OF RECEIPT  SHALL
 STATE  (I)  THE NAME AND ADDRESS OF THE ISSUING PUBLIC EDUCATION ENTITY,
 SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR  EDUCATIONAL
 SCHOLARSHIP  ORGANIZATION,  (II)  THE TAXPAYER'S NAME AND ADDRESS, (III)
 THE DATE FOR EACH CONTRIBUTION, (IV) THE AMOUNT OF EACH CONTRIBUTION AND
 THE CORRESPONDING CONTRIBUTION AUTHORIZATION CERTIFICATE NUMBER, (V) THE
 TOTAL  AMOUNT  OF  CONTRIBUTIONS, (VI) CERTIFICATE OF RECEIPT NUMBER AND
 (VII) ANY OTHER INFORMATION THAT THE COMMISSIONER MAY DEEM NECESSARY.
   4. NOTIFICATION TO THE DEPARTMENT FOR THE ISSUANCE OF A CERTIFICATE OF
 RECEIPT. UPON THE ISSUANCE OF A  CERTIFICATE  OF  RECEIPT,  THE  ISSUING
 PUBLIC  EDUCATION  ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCA-
 TION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN  THIRTY
 DAYS  OF ISSUING THE CERTIFICATE OF RECEIPT, PROVIDE THE DEPARTMENT WITH
 NOTIFICATION OF THE ISSUANCE OF SUCH CERTIFICATE IN THE FORM AND  MANNER
 PRESCRIBED BY THE DEPARTMENT.
   5. NOTIFICATION TO THE DEPARTMENT OF THE NON-ISSUANCE OF A CERTIFICATE
 OF  RECEIPT.  EACH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA-
 TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT
 RECEIVED NOTIFICATION FROM THE DEPARTMENT PURSUANT TO SUBDIVISION (F) OF
 THIS SECTION REGARDING THE  ISSUANCE  OF  A  CONTRIBUTION  AUTHORIZATION
 CERTIFICATE  TO  A  TAXPAYER SHALL, WITHIN THIRTY DAYS OF THE EXPIRATION
 DATE FOR SUCH  AUTHORIZED  CONTRIBUTION,  PROVIDE  NOTIFICATION  TO  THE
 DEPARTMENT FOR EACH TAXPAYER THAT FAILED TO MAKE THE AUTHORIZED CONTRIB-
 UTION  TO SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION,
 LOCAL EDUCATION FUND, OR EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  IN  THE
 FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.
   6. FAILURE TO NOTIFY THE DEPARTMENT. WITHIN THIRTY DAYS OF THE DISCOV-
 ERY  OF  THE  FAILURE OF ANY PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT
 PROGRAM, LOCAL EDUCATION FUND, OR EDUCATIONAL  SCHOLARSHIP  ORGANIZATION
 TO  COMPLY  WITH  THE NOTIFICATION REQUIREMENTS PRESCRIBED BY PARAGRAPHS
 FOUR AND FIVE OF THIS SUBDIVISION, THE COMMISSIONER SHALL ISSUE A NOTICE
 OF COMPLIANCE FAILURE TO SUCH ENTITY, PROGRAM,  FUND,  OR  ORGANIZATION.
 SUCH  ENTITY, PROGRAM, FUND, OR ORGANIZATION SHALL HAVE THIRTY DAYS FROM
 THE DATE OF SUCH NOTICE TO MAKE THE NOTIFICATIONS  PRESCRIBED  BY  PARA-
 GRAPHS  FOUR  AND  FIVE OF THIS SUBDIVISION. SUCH PERIOD MAY BE EXTENDED
 FOR AN ADDITIONAL THIRTY DAYS UPON THE REQUEST OF THE  ENTITY,  PROGRAM,
 FUND,  OR ORGANIZATION. UPON THE EXPIRATION OF PERIOD FOR COMPLIANCE SET
 FORTH IN THE NOTICE PRESCRIBED BY THIS PARAGRAPH, THE COMMISSIONER SHALL
 NOTIFY THE COMMISSIONER OF EDUCATION THAT SUCH ENTITY, PROGRAM, FUND, OR
 ORGANIZATION FAILED TO MAKE THE NOTIFICATIONS PRESCRIBED  BY  PARAGRAPHS
 FOUR AND FIVE OF THIS SUBDIVISION.
   (H)  CREDIT  CAP.  THE  MAXIMUM  PERMITTED  CREDITS UNDER THIS SECTION
 AVAILABLE TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS FOR CALENDAR YEAR
 TWO THOUSAND EIGHTEEN SHALL BE ONE HUNDRED  FIFTY  MILLION  DOLLARS.  IN
 CALENDAR YEAR TWO THOUSAND NINETEEN, THE MAXIMUM PERMITTED CREDITS UNDER
 THIS SECTION AVAILABLE TO ALL TAXPAYERS SHALL BE TWO HUNDRED TWENTY-FIVE
 MILLION  DOLLARS  PLUS  ANY AMOUNTS THAT ARE REQUIRED TO BE ADDED TO THE
 CAP PURSUANT TO SUBDIVISION (I) OF THIS SECTION.  FOR CALENDAR YEAR  TWO
 THOUSAND TWENTY AND EACH CALENDAR YEAR THEREAFTER, THE MAXIMUM PERMITTED
 CREDITS  AVAILABLE  TO  ALL  TAXPAYERS  SHALL  BE  THREE HUNDRED MILLION
 DOLLARS PLUS ANY AMOUNTS THAT ARE REQUIRED TO BE ADDED TO THE CAP PURSU-
 ANT TO SUBDIVISION (I) OF THIS SECTION.  THE MAXIMUM  PERMITTED  CREDITS
 UNDER  THIS SECTION FOR QUALIFIED CONTRIBUTIONS SHALL BE ALLOCATED FIFTY
 PERCENT TO PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT  ORGANIZATIONS,
 AND  LOCAL  EDUCATION FUNDS AND FIFTY PERCENT TO EDUCATIONAL SCHOLARSHIP
 ORGANIZATIONS.

 S. 6569                             8
 
   (I) ADDITIONS TO CREDIT CAP; UNISSUED  CERTIFICATES  OF  RECEIPT.  ANY
 AMOUNTS  FOR  WHICH THE DEPARTMENT RECEIVES NOTIFICATION OF NON-ISSUANCE
 OF A CERTIFICATE OF RECEIPT SHALL BE ADDED  TO  THE  CAP  PRESCRIBED  IN
 SUBDIVISION (H) OF THIS SECTION FOR THE IMMEDIATELY FOLLOWING YEAR.
   (J)  REGULATIONS.  THE COMMISSIONER IS HEREBY AUTHORIZED TO PROMULGATE
 AND ADOPT ON AN EMERGENCY BASIS REGULATIONS NECESSARY FOR THE  IMPLEMEN-
 TATION OF THIS SECTION.
   (K)  WRITTEN REPORT. ON OR BEFORE THE LAST DAY OF JUNE FOR EACH CALEN-
 DAR YEAR, FOR THE IMMEDIATELY PRECEDING YEAR, THE COMMISSIONER  AND  THE
 COMMISSIONER  OF  EDUCATION SHALL JOINTLY SUBMIT A WRITTEN REPORT TO THE
 GOVERNOR, THE TEMPORARY PRESIDENT OF THE  SENATE,  THE  SPEAKER  OF  THE
 ASSEMBLY,  THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN
 OF THE ASSEMBLY WAYS AND MEANS COMMITTEE REGARDING THE EDUCATION AFFORD-
 ABILITY TAX CREDIT. SUCH REPORT SHALL CONTAIN INFORMATION  FOR  ARTICLES
 NINE-A AND TWENTY-TWO, RESPECTIVELY, REGARDING: (I) THE NUMBER OF APPLI-
 CATIONS RECEIVED; (II) THE NUMBER OF AND AGGREGATE VALUE OF THE CONTRIB-
 UTION  AUTHORIZATION  CERTIFICATES  ISSUED  FOR  CONTRIBUTIONS TO PUBLIC
 EDUCATION ENTITIES, SCHOOL IMPROVEMENT  ORGANIZATIONS,  LOCAL  EDUCATION
 FUNDS,  AND SCHOLARSHIP ORGANIZATIONS, RESPECTIVELY; (III) THE GEOGRAPH-
 ICAL DISTRIBUTION BY COUNTY OF (A)  THE  APPLICATIONS  FOR  CONTRIBUTION
 AUTHORIZATION  CERTIFICATES,  DISTRIBUTION  BY  COUNTY OF (B) THE PUBLIC
 EDUCATION ENTITIES, SCHOOL IMPROVEMENT  ORGANIZATIONS,  LOCAL  EDUCATION
 FUNDS,  AND  EDUCATIONAL  SCHOLARSHIP ORGANIZATIONS LISTED ON THE ISSUED
 CONTRIBUTION AUTHORIZATION CERTIFICATES; AND (IV) INFORMATION, INCLUDING
 GEOGRAPHICAL DISTRIBUTION BY COUNTY, OF THE NUMBER  OF  ELIGIBLE  PUPILS
 THAT  RECEIVED SCHOLARSHIPS, THE NUMBER OF QUALIFIED SCHOOLS ATTENDED BY
 ELIGIBLE PUPILS THAT RECEIVED SUCH SCHOLARSHIPS, AND THE  AVERAGE  VALUE
 OF  SCHOLARSHIPS  RECEIVED BY SUCH ELIGIBLE PUPILS. THE COMMISSIONER AND
 DESIGNATED EMPLOYEES OF THE DEPARTMENT, THE  COMMISSIONER  OF  EDUCATION
 AND  DESIGNATED  EMPLOYEES  OF  THE STATE EDUCATION DEPARTMENT, SHALL BE
 ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE INFORMATION REGARDING THE
 SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS AND  EDUCATIONAL
 SCHOLARSHIP  ORGANIZATIONS THAT APPLIED FOR APPROVAL TO BE AUTHORIZED TO
 RECEIVE QUALIFIED CONTRIBUTIONS;  AND  THE  PUBLIC  EDUCATION  ENTITIES,
 SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS, AND EDUCATIONAL
 SCHOLARSHIP  ORGANIZATIONS  AUTHORIZED TO ISSUE CERTIFICATES OF RECEIPT,
 INCLUDING INFORMATION CONTAINED IN OR DERIVED FROM APPLICATION FORMS AND
 REPORTS SUBMITTED TO THE COMMISSIONER OF EDUCATION.
   (L) 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-B; SUBDIVISION 53;
   2. ARTICLE 22: SECTION 606; SUBSECTIONS (I) AND (CCC).
   §  5.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
 amended by adding a new subparagraph 23 to read as follows:
   (23) THE AMOUNT OF ANY  DEDUCTION  ALLOWED  PURSUANT  TO  SECTION  ONE
 HUNDRED  SEVENTY  OF  THE  INTERNAL  REVENUE  CODE FOR WHICH A CREDIT IS
 CLAIMED PURSUANT TO SUBDIVISION FIFTY-THREE OF SECTION TWO HUNDRED TEN-B
 OF THIS ARTICLE.
   § 6. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 53 to read as follows:
   53.  EDUCATION  AFFORDABILITY  TAX  CREDIT. (A) ALLOWANCE OF CREDIT. A
 TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN
 SECTION  FORTY-FOUR  OF  THIS  CHAPTER,  AGAINST THE TAX IMPOSED BY THIS
 ARTICLE.
   (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
 FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS

 S. 6569                             9
 
 THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPH (D)  OF  SUBDIVI-
 SION  ONE  OF  SECTION TWO HUNDRED TEN OF THIS ARTICLE.  HOWEVER, IF THE
 AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR  QUALIFIED  CONTRIB-
 UTIONS  FOR  ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT
 OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE
 SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE  TAXPAYER'S  TAX  FOR
 SUCH YEAR OR YEARS.
   §  7. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
 follows:
 (XLIV) EDUCATION AFFORDABILITY       AMOUNT OF CREDIT UNDER
 TAX CREDIT UNDER SUBSECTION (CCC)    SUBDIVISION FIFTY-THREE OF SECTION
                                      TWO HUNDRED TEN-B
   §  8.  Section  606  of  the  tax  law  is  amended  by adding two new
 subsections (w) and (w-1) to read as follows:
   (W) HOME-BASED INSTRUCTIONAL MATERIALS CREDIT. (1) FOR  TAXABLE  YEARS
 BEGINNING  ON  OR AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN, A TAXPAYER
 SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY  THIS  ARTICLE  FOR
 THE  PURCHASE  OF  INSTRUCTIONAL  MATERIALS  APPROVED  BY  THE EDUCATION
 DEPARTMENT  FOR  USE  IN  NON-PUBLIC  HOME-BASED  EDUCATIONAL  PROGRAMS;
 PROVIDED,  THAT  THE AMOUNT OF CREDIT CLAIMED DOES NOT EXCEED THE LESSER
 OF TWO HUNDRED DOLLARS OR ONE  HUNDRED  PERCENT  OF  THE  COST  OF  SUCH
 PURCHASES MADE BY THE TAXPAYER DURING THE TAXABLE YEAR.
   (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
 WHICH  THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY ONE-HALF
 OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
   (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR  ANY
 TAXABLE  YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
 SHALL 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 SHALL BE PAID THEREON.
   (W-1)  INSTRUCTIONAL  MATERIALS  AND SUPPLIES CREDIT.  (1) FOR TAXABLE
 YEARS BEGINNING ON AND AFTER JANUARY FIRST,  TWO  THOUSAND  EIGHTEEN,  A
 TAXPAYER  SHALL  BE  ALLOWED  A CREDIT EQUAL TO THE LESSER OF THE AMOUNT
 PAID BY THE TAXPAYER DURING THE TAXABLE YEAR FOR INSTRUCTIONAL MATERIALS
 AND SUPPLIES, OR TWO HUNDRED DOLLARS; PROVIDED THAT THE  TAXPAYER  IS  A
 TEACHER  OR  INSTRUCTOR  IN  A  QUALIFIED  SCHOOL, AS DEFINED IN SECTION
 FORTY-FOUR OF THIS CHAPTER, FOR AT LEAST NINE  HUNDRED  HOURS  DURING  A
 SCHOOL  YEAR.  FOR  PURPOSES OF THIS SUBSECTION, THE TERM "MATERIALS AND
 SUPPLIES" MEANS INSTRUCTIONAL MATERIALS OR SUPPLIES THAT ARE USED IN THE
 CLASSROOM IN ANY QUALIFIED SCHOOL.
   (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
 WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY  ONE-HALF
 OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
   (3)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
 SHALL  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 SHALL BE PAID THEREON.
   § 9. Section 606 of the tax law is amended by adding a new  subsection
 (ccc) to read as follows:
   (CCC)  EDUCATION  AFFORDABILITY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A
 TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
 FORTY-FOUR 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  QUALIFIED CONTRIBUTIONS FOR ANY TAXABLE YEAR

 S. 6569                            10
 
 EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER
 TO THE SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX
 FOR SUCH YEAR OR YEARS.
   §  10.  Subsection  (c)  of  section  615 of the tax law is amended by
 adding a new paragraph 10 to read as follows:
   (10) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR  CONTRIBUTIONS  MADE  FOR
 WHICH  A  TAXPAYER CLAIMS A CREDIT UNDER SUBSECTION (CCC) OF SECTION SIX
 HUNDRED SIX OF THIS ARTICLE.
   § 11. Title 1 of the education law is amended by adding a new  article
 25 to read as follows:
                                ARTICLE 25
                      EDUCATION AFFORDABILITY PROGRAM
 SECTION 1209. SHORT TITLE.
         1210. DEFINITIONS.
         1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
         1212. APPLICATIONS   FOR   APPROVAL  TO  ISSUE  CERTIFICATES  OF
                 RECEIPT.
         1213. APPLICATION APPROVAL.
         1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
         1215. RECORDKEEPING.
         1216. JOINT ANNUAL REPORT.
         1217. COMMISSIONER; POWERS.
   § 1209. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
 THE "EDUCATION AFFORDABILITY PROGRAM".
   §  1210.  DEFINITIONS.  AS  USED  IN THIS ARTICLE, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1. "AUTHORIZED CONTRIBUTION" MEANS THE CONTRIBUTION AMOUNT  LISTED  ON
 THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO A TAXPAYER.
   2.  "CONTRIBUTION"  MEANS  A  DONATION PAID BY CASH, CHECK, ELECTRONIC
 FUNDS TRANSFER, DEBIT CARD OR CREDIT CARD MADE BY  THE  TAXPAYER  DURING
 THE TAX YEAR.
   3.  "EDUCATIONAL PROGRAM" MEANS AN ACADEMIC PROGRAM OF A PUBLIC SCHOOL
 THAT ENHANCES THE CURRICULUM, OR PROVIDES OR EXPANDS A  PRE-KINDERGARTEN
 PROGRAM OR AN AFTER-SCHOOL PROGRAM TO THE PUBLIC SCHOOL. FOR PURPOSES OF
 THIS  DEFINITION,  THE  INSTRUCTION, MATERIALS, PROGRAMS OR OTHER ACTIV-
 ITIES OFFERED BY OR THROUGH AN EDUCATIONAL PROGRAM MAY INCLUDE, BUT  ARE
 NOT  LIMITED  TO,  THE  FOLLOWING FEATURES: (A) INSTRUCTION OR MATERIALS
 PROMOTING HEALTH, PHYSICAL EDUCATION, AND FAMILY AND CONSUMER  SCIENCES;
 LITERARY, PERFORMING AND VISUAL ARTS; MATHEMATICS, SOCIAL STUDIES, TECH-
 NOLOGY  AND  SCIENTIFIC  ACHIEVEMENT;  (B) INSTRUCTION OR PROGRAMMING TO
 MEET THE EDUCATION NEEDS OF AT-RISK STUDENTS OR STUDENTS WITH  DISABILI-
 TIES,  INCLUDING  TUTORING  OR  COUNSELING;  OR  (C)  USE OF SPECIALIZED
 INSTRUCTIONAL MATERIALS, INSTRUCTORS OR INSTRUCTION NOT  PROVIDED  BY  A
 PUBLIC SCHOOL.
   4. "EDUCATIONAL SCHOLARSHIP ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTI-
 TY WHICH (A) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION
 (C)  OF  SECTION  FIVE  HUNDRED  ONE  OF  THE INTERNAL REVENUE CODE, (B)
 COMMITS FOR THE EXPENDITURE OF AT LEAST NINETY PERCENT  OF  THE  REVENUE
 FROM  QUALIFIED  CONTRIBUTIONS RECEIVED DURING THE CALENDAR YEAR AND ANY
 INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS FOR SCHOLARSHIPS, (C) DEPOS-
 ITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALI-
 FIED CONTRIBUTIONS IN AN ACCOUNT THAT IS  SEPARATE  FROM  THE  ORGANIZA-
 TION'S  OPERATING  OR  OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR
 INCOME ARE WITHDRAWN FOR USE, AND (D) PROVIDES SCHOLARSHIPS TO  ELIGIBLE
 PUPILS FOR USE AT NO FEWER THAN THREE QUALIFIED SCHOOLS.

 S. 6569                            11
 
   5. "ELIGIBLE PUPIL" MEANS A CHILD WHO (A) IS A RESIDENT OF THIS STATE,
 (B)  IS SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE OF SECTION THIRTY-
 TWO HUNDRED TWO OF THIS CHAPTER OR WHO IS FOUR YEARS OF AGE ON OR BEFORE
 DECEMBER FIRST OF THE YEAR IN WHICH THEY ARE ENROLLED IN  A  PRE-KINDER-
 GARTEN  PROGRAM,  (C)  ATTENDS OR IS ABOUT TO ATTEND A QUALIFIED SCHOOL,
 AND (D) RESIDES IN A HOUSEHOLD THAT HAS A FEDERAL ADJUSTED GROSS  INCOME
 OF  FIVE  HUNDRED THOUSAND DOLLARS OR LESS, PROVIDED HOWEVER, FOR HOUSE-
 HOLDS WITH THREE OR MORE DEPENDENT CHILDREN, SUCH INCOME LEVEL SHALL  BE
 INCREASED  BY TEN THOUSAND DOLLARS PER DEPENDENT CHILD IN EXCESS OF TWO,
 NOT TO EXCEED FIVE HUNDRED FIFTY THOUSAND DOLLARS.
   6. "LOCAL EDUCATION FUND" MEANS A NOT-FOR-PROFIT ENTITY WHICH  (A)  IS
 EXEMPT  FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION
 FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (B)  IS  ESTABLISHED  FOR
 THE  PURPOSE OF SUPPORTING AN EDUCATIONAL PROGRAM IN AT LEAST ONE PUBLIC
 SCHOOL, OR PUBLIC SCHOOL DISTRICT, (C) USES AT LEAST NINETY  PERCENT  OF
 THE  QUALIFIED  CONTRIBUTIONS  RECEIVED DURING THE CALENDAR YEAR AND ANY
 INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS TO SUPPORT THE PUBLIC SCHOOL
 OR SCHOOLS OR PUBLIC SCHOOL DISTRICT OR DISTRICTS  THAT  SUCH  FUND  HAS
 BEEN  ESTABLISHED  TO  SUPPORT,  AND  (D)  DEPOSITS  AND HOLDS QUALIFIED
 CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN  AN
 ACCOUNT  THAT IS SEPARATE FROM THE FUND'S OPERATING OR OTHER FUNDS UNTIL
 SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE.
   7.  "NONPUBLIC  SCHOOL"  MEANS  ANY  NOT-FOR-PROFIT   PRE-KINDERGARTEN
 PROGRAM  OR  ELEMENTARY,  SECONDARY  SECTARIAN  OR  NONSECTARIAN  SCHOOL
 LOCATED IN THIS STATE, OTHER THAN A PUBLIC  SCHOOL,  THAT  IS  PROVIDING
 INSTRUCTION  AT  ONE  OR  MORE LOCATIONS TO A STUDENT IN ACCORDANCE WITH
 SUBDIVISION TWO OF SECTION THIRTY-TWO HUNDRED FOUR OF THIS CHAPTER.
   8. "PUBLIC EDUCATION ENTITY" MEANS A PUBLIC SCHOOL OR A PUBLIC  SCHOOL
 DISTRICT,  PROVIDED  THAT  SUCH PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT
 DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME  DERIVED  FROM
 QUALIFIED  CONTRIBUTIONS  IN AN ACCOUNT THAT IS SEPARATE FROM THE PUBLIC
 SCHOOL OR PUBLIC SCHOOL DISTRICT'S OPERATING OR OTHER FUNDS  UNTIL  SUCH
 QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, AND IS APPROVED
 TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
   9.  "PUBLIC  SCHOOL"  MEANS ANY FREE ELEMENTARY OR SECONDARY SCHOOL IN
 THIS STATE GUARANTEED BY ARTICLE ELEVEN OF THE CONSTITUTION  OR  CHARTER
 SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THIS CHAPTER.
   10. "QUALIFIED CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE BY
 A  TAXPAYER TO THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA-
 TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT
 IS LISTED ON THE CONTRIBUTION AUTHORIZATION CERTIFICATE  ISSUED  TO  THE
 TAXPAYER  AND  FOR  WHICH  THE  TAXPAYER  HAS  RECEIVED A CERTIFICATE OF
 RECEIPT FROM SUCH ENTITY, FUND, OR ORGANIZATION.   A  CONTRIBUTION  DOES
 NOT QUALIFY IF THE TAXPAYER DESIGNATES THE TAXPAYER'S CONTRIBUTION TO AN
 ENTITY OR ORGANIZATION FOR THE DIRECT BENEFIT OF ANY PARTICULAR OR SPEC-
 IFIED STUDENT.
   11.  "QUALIFIED  EDUCATOR"  MEANS  AN  INDIVIDUAL  WHO IS A TEACHER OR
 INSTRUCTOR IN A QUALIFIED SCHOOL FOR AT LEAST NINE HUNDRED HOURS  DURING
 A SCHOOL YEAR.
   12. "QUALIFIED SCHOOL" MEANS A PUBLIC SCHOOL OR NONPUBLIC SCHOOL.
   13.  "SCHOLARSHIP"  MEANS  AN EDUCATIONAL SCHOLARSHIP WHICH PROVIDES A
 TUITION GRANT AWARDED TO AN ELIGIBLE PUPIL TO ATTEND A QUALIFIED  SCHOOL
 IN  AN  AMOUNT  NOT  TO EXCEED THE TUITION CHARGED TO ATTEND SUCH SCHOOL
 LESS ANY OTHER EDUCATIONAL SCHOLARSHIP RECEIVED BY SUCH  ELIGIBLE  PUPIL
 OR  HIS  OR  HER  PARENT,  PARENTS OR GUARDIAN FOR SUCH ELIGIBLE PUPIL'S
 TUITION; PROVIDED, HOWEVER, IN THE CASE OF AN ELIGIBLE PUPIL ATTENDING A

 S. 6569                            12
 
 PUBLIC SCHOOL IN A PUBLIC SCHOOL DISTRICT OF WHICH SUCH PUPIL IS  NOT  A
 RESIDENT,  THE  AMOUNT  OF  THE  EDUCATIONAL SCHOLARSHIP AWARDED MAY NOT
 EXCEED THE TUITION CHARGED BY THE PUBLIC SCHOOL PURSUANT TO PARAGRAPH  D
 OF  SUBDIVISION  FOUR  OF SECTION THIRTY-TWO HUNDRED TWO OF THIS CHAPTER
 LESS ANY OTHER EDUCATIONAL SCHOLARSHIP RECEIVED BY SUCH  ELIGIBLE  PUPIL
 OR  HIS  OR  HER  PARENT,  PARENTS OR GUARDIAN FOR SUCH ELIGIBLE PUPIL'S
 TUITION, BUT ONLY IF THE PUBLIC SCHOOL DISTRICT OF WHICH SUCH PUPIL IS A
 RESIDENT IS NOT REQUIRED TO PAY FOR SUCH TUITION.
   14. "SCHOOL IMPROVEMENT ORGANIZATION" MEANS  A  NOT-FOR-PROFIT  ENTITY
 WHICH  (I)  IS  EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION
 (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II)  USES
 AT  LEAST  NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING
 THE CALENDAR YEAR AND ANY INCOME DERIVED FROM  SUCH  QUALIFIED  CONTRIB-
 UTIONS  TO  ASSIST  PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS LOCATED IN
 THIS STATE IN THEIR PROVISION OF EDUCATIONAL PROGRAMS, EITHER BY  MAKING
 CONTRIBUTIONS  TO  ONE OR MORE PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS
 LOCATED IN THIS STATE  OR  PROVIDING  EDUCATIONAL  PROGRAMS  TO,  OR  IN
 CONJUNCTION  WITH, ONE OR MORE PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS
 LOCATED IN THIS STATE, (III) DEPOSITS AND HOLDS QUALIFIED  CONTRIBUTIONS
 AND  ANY  INCOME DERIVED FROM SUCH QUALIFIED CONTRIBUTIONS IN AN ACCOUNT
 THAT IS SEPARATE FROM THE ORGANIZATION'S OPERATING OR OTHER FUNDS  UNTIL
 SUCH  QUALIFIED  CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, AND (IV)
 IS APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO  THIS  ARTICLE.
 SUCH  ENTITY  MAY  ALLOW  THE TAXPAYER TO CHOOSE TO DONATE TO A PROGRAM,
 PROJECT OR INITIATIVE IDENTIFIED BY A QUALIFIED EDUCATOR FOR  USE  IN  A
 PUBLIC SCHOOL.
   §  1211.  APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1. PUBLIC SCHOOLS
 AND PUBLIC SCHOOL  DISTRICTS.  ALL  PUBLIC  SCHOOLS  AND  PUBLIC  SCHOOL
 DISTRICTS  SHALL  BE APPROVED TO ISSUE CERTIFICATES OF RECEIPT PROVIDED,
 THAT A PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT SHALL NOT BE APPROVED  IF
 EITHER  (A) THE PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT FAILS TO DEPOSIT
 AND HOLD QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED  FROM  QUALIFIED
 CONTRIBUTIONS  IN  AN ACCOUNT THAT IS SEPARATE FROM THE SCHOOL OR SCHOOL
 DISTRICT'S OPERATING OR OTHER FUNDS UNTIL SUCH  QUALIFIED  CONTRIBUTIONS
 OR  INCOME  ARE  WITHDRAWN  FOR USE, OR (B) THE COMMISSIONER HAS REVOKED
 SUCH APPROVAL FOR SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT  PURSUANT
 TO SECTION TWELVE HUNDRED FOURTEEN OF THIS ARTICLE.
   2. SCHOOL IMPROVEMENT ORGANIZATIONS, EDUCATIONAL SCHOLARSHIP ORGANIZA-
 TIONS  AND  LOCAL  EDUCATION  FUNDS. NO SCHOOL IMPROVEMENT ORGANIZATION,
 EDUCATIONAL SCHOLARSHIP ORGANIZATION OR LOCAL EDUCATION FUND SHALL ISSUE
 ANY CERTIFICATES OF RECEIPT WITHOUT FILING AN  APPLICATION  PURSUANT  TO
 SECTION  TWELVE  HUNDRED  TWELVE  OF THIS ARTICLE AND RECEIVING APPROVAL
 PURSUANT TO SECTION TWELVE HUNDRED THIRTEEN OF THIS ARTICLE.
   § 1212. APPLICATIONS FOR APPROVAL TO ISSUE  CERTIFICATES  OF  RECEIPT.
 EACH  SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP ORGANIZA-
 TION, AND LOCAL EDUCATION  FUND  SHALL  SUBMIT  AN  APPLICATION  TO  THE
 COMMISSIONER  FOR  APPROVAL TO ISSUE CERTIFICATES OF RECEIPT IN THE FORM
 AND MANNER PRESCRIBED BY THE COMMISSIONER; PROVIDED THAT  SUCH  APPLICA-
 TION  SHALL  INCLUDE:  (A)  SUBMISSION OF DOCUMENTATION THAT SUCH SCHOOL
 IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR  EDUCATIONAL  SCHOLAR-
 SHIP  ORGANIZATION  HAS BEEN GRANTED EXEMPTION FROM TAXATION UNDER PARA-
 GRAPH THREE OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE  INTER-
 NAL  REVENUE  CODE;  (B)  THE  MOST RECENT ANNUAL FINANCIAL AUDIT, WHICH
 SHALL BE COMPLETED BY AN INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT  AND  A
 LIST OF NAMES AND ADDRESSES OF ALL MEMBERS OF THE GOVERNING BOARD OF THE
 SCHOOL  IMPROVEMENT  ORGANIZATION,  LOCAL  EDUCATION FUND OR EDUCATIONAL

 S. 6569                            13
 
 SCHOLARSHIP ORGANIZATION; AND (C) AN EDUCATIONAL  SCHOLARSHIP  ORGANIZA-
 TION SHALL PROVIDE CRITERIA FOR THE AWARDING OF SCHOLARSHIPS TO ELIGIBLE
 STUDENTS.  NEITHER  THE COMMISSIONER OR THE DEPARTMENT SHALL REQUIRE ANY
 OTHER  INFORMATION  FOR  SUCH  APPLICATION  EXCEPT AS AUTHORIZED IN THIS
 ARTICLE OR BY SECTION FORTY-FOUR OF THE TAX LAW.
   § 1213. APPLICATION  APPROVAL.  THE  COMMISSIONER  SHALL  REVIEW  EACH
 APPLICATION  TO  ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
 APPROVAL OR DENIAL OF AN APPLICATION SHALL BE MADE WITHIN SIXTY DAYS  OF
 RECEIPT OF SUCH APPLICATION.
   §  1214.  REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. THE
 COMMISSIONER, IN CONSULTATION WITH  THE  COMMISSIONER  OF  TAXATION  AND
 FINANCE,  MAY  REVOKE THE APPROVAL OF A SCHOOL IMPROVEMENT ORGANIZATION,
 EDUCATIONAL  SCHOLARSHIP  ORGANIZATION,  LOCAL  EDUCATION  FUND,  PUBLIC
 SCHOOL OR PUBLIC SCHOOL DISTRICT TO ISSUE CERTIFICATES OF RECEIPT UPON A
 FINDING  THAT  SUCH  ORGANIZATION,  FUND,  SCHOOL OR SCHOOL DISTRICT HAS
 VIOLATED THIS ARTICLE OR  SECTION  FORTY-FOUR  OF  THE  TAX  LAW.  THESE
 VIOLATIONS  SHALL  INCLUDE, BUT NOT BE LIMITED TO, ANY OF THE FOLLOWING:
 (A) FAILURE TO MEET THE REQUIREMENTS OF THIS ARTICLE OR  SECTION  FORTY-
 FOUR  OF  THE  TAX  LAW,  (B)  THE FAILURE TO MAINTAIN FULL AND ADEQUATE
 RECORDS WITH RESPECT TO THE RECEIPT OF QUALIFIED CONTRIBUTIONS, (C)  THE
 FAILURE  TO SUPPLY SUCH RECORDS TO THE COMMISSIONER OR THE DEPARTMENT OF
 TAXATION AND FINANCE WHEN REQUESTED BY THE DEPARTMENT OR THE  DEPARTMENT
 OF  TAXATION  AND  FINANCE,  OR (D) THE FAILURE TO PROVIDE NOTICE TO THE
 DEPARTMENT OF TAXATION AND FINANCE OF THE  ISSUANCE  OR  NONISSUANCE  OF
 CERTIFICATES  OF  RECEIPT PURSUANT TO SECTION FORTY-FOUR OF THE TAX LAW;
 PROVIDED HOWEVER, THAT THE COMMISSIONER SHALL NOT REVOKE APPROVAL PURSU-
 ANT TO THIS SECTION BASED UPON A VIOLATION OF THE  TAX  LAW  UNLESS  THE
 COMMISSIONER   OF   TAXATION  AND  FINANCE  AGREES  THAT  REVOCATION  IS
 WARRANTED; AND PROVIDED FURTHER THAT THE COMMISSIONER SHALL  NOT  REVOKE
 APPROVAL  PURSUANT  TO THIS SECTION WHEN THE FAILURE TO COMPLY IS DUE TO
 CLERICAL ERROR AND NOT NEGLIGENCE OR INTENTIONAL DISREGARD FOR THE  LAW.
 WITHIN FIVE DAYS OF THE DETERMINATION REVOKING APPROVAL, THE COMMISSION-
 ER  SHALL  PROVIDE NOTICE OF SUCH REVOCATION TO THE EDUCATIONAL SCHOLAR-
 SHIP ORGANIZATION,  SCHOOL  IMPROVEMENT  ORGANIZATION,  LOCAL  EDUCATION
 FUND,  PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT AND TO THE DEPARTMENT OF
 TAXATION AND FINANCE.
   § 1215. RECORDKEEPING. EACH SCHOOL  IMPROVEMENT  ORGANIZATION,  EDUCA-
 TIONAL SCHOLARSHIP ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL AND
 PUBLIC  SCHOOL  DISTRICT THAT ISSUED AT LEAST ONE CERTIFICATE OF RECEIPT
 SHALL MAINTAIN RECORDS INCLUDING (A)  NOTIFICATIONS  RECEIVED  FROM  THE
 DEPARTMENT  OF  TAXATION  AND  FINANCE,  (B)  NOTIFICATIONS  MADE TO THE
 DEPARTMENT OF TAXATION AND FINANCE, (C)  COPIES  OF  QUALIFIED  CONTRIB-
 UTIONS  RECEIVED,  (D)  COPIES OF THE DEPOSIT OF SUCH QUALIFIED CONTRIB-
 UTIONS, (E) COPIES OF ISSUED CERTIFICATES OF RECEIPT, (F) ANNUAL  FINAN-
 CIAL  STATEMENTS,  (G)  IN THE CASE OF SCHOOL IMPROVEMENT ORGANIZATIONS,
 EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AND  LOCAL  EDUCATION  FUNDS,  THE
 APPLICATION  SUBMITTED PURSUANT TO SECTION TWELVE HUNDRED TWELVE OF THIS
 ARTICLE AND THE APPROVAL ISSUED BY THE COMMISSIONER, AND (H)  ANY  OTHER
 INFORMATION AS PRESCRIBED BY REGULATION PROMULGATED BY THE COMMISSIONER.
   §  1216.  JOINT  ANNUAL  REPORT. ON OR BEFORE THE LAST DAY OF JUNE FOR
 EACH CALENDAR YEAR, THE COMMISSIONER OF TAXATION  AND  FINANCE  AND  THE
 COMMISSIONER,  JOINTLY,  SHALL  SUBMIT  A  WRITTEN REPORT AS PROVIDED IN
 SUBDIVISION (K) OF SECTION FORTY-FOUR OF THE TAX LAW.
   § 1217. COMMISSIONER; POWERS. THE COMMISSIONER SHALL PROMULGATE ON  AN
 EMERGENCY  BASIS  REGULATIONS  NECESSARY  FOR THE IMPLEMENTATION OF THIS
 SECTION. THE COMMISSIONER SHALL MAKE  ANY  APPLICATION  REQUIRED  TO  BE

 S. 6569                            14
 
 FILED PURSUANT TO THIS ARTICLE AVAILABLE TO APPLICANTS WITHIN SIXTY DAYS
 OF THE EFFECTIVE DATE OF THIS ARTICLE.
   §  12.  The education law is amended by adding a new section 1503-a to
 read as follows:
   § 1503-A. POWER TO ACCEPT AND SOLICIT GIFTS AND  DONATIONS.    1.  ALL
 SCHOOL DISTRICTS ORGANIZED BY SPECIAL LAWS OR PURSUANT TO THE PROVISIONS
 OF  A  GENERAL  LAW ARE HEREBY AUTHORIZED AND EMPOWERED TO ACCEPT GIFTS,
 DONATIONS, AND CONTRIBUTIONS TO THE DISTRICT AND TO SOLICIT THE SAME.
   2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR OF ANY OTHER
 GENERAL OR SPECIAL LAW TO THE  CONTRARY,  THE  RECEIPT  OF  SUCH  GIFTS,
 DONATIONS,  CONTRIBUTIONS AND OTHER FUNDS, AND ANY INCOME DERIVED THERE-
 FROM, SHALL BE DISREGARDED  FOR  THE  PURPOSES  OF  ALL  APPORTIONMENTS,
 COMPUTATIONS, AND DETERMINATIONS OF STATE AID.
   §  13.  Severability. If any provision of this section or the applica-
 tion thereof to any person or circumstances is held invalid, such  inva-
 lidity  shall not affect other provisions or applications of the section
 which can be given effect without the invalid provision or  application,
 and to this end the provisions of this section are declared to be sever-
 able.
   §  14.  This act shall take effect immediately; provided, however that
 sections four, five, six, seven, eight, nine and ten of this  act  shall
 apply to taxable years beginning after December 31, 2017.