S T A T E O F N E W Y O R K
________________________________________________________________________
3630
2019-2020 Regular Sessions
I N A S S E M B L Y
January 29, 2019
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Introduced by M. of A. SCHIMMINGER, THIELE, GOTTFRIED, ABINANTI, GALEF,
CRESPO, PEOPLES-STOKES, ZEBROWSKI, PICHARDO, COLTON, BLAKE -- Multi-
Sponsored by -- M. of A. PRETLOW -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the state finance law and the tax law, in relation to
establishing the New York state charitable health and education trust
fund and the New York state charitable health and education trust fund
donation tax credit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The state finance law is amended by adding a new section
99-ff to read as follows:
§ 99-FF. NEW YORK STATE CHARITABLE HEALTH AND EDUCATION TRUST FUND.
1. (A) THERE IS HEREBY ESTABLISHED IN THE SOLE CUSTODY OF THE STATE
COMPTROLLER A SPECIAL FUND TO BE KNOWN AS THE NEW YORK STATE CHARITABLE
HEALTH AND EDUCATION TRUST FUND.
(B) THE COMPTROLLER, IN CONSULTATION WITH THE ATTORNEY GENERAL, SHALL
ENSURE SUCH TRUST FUND SATISFIES THE REQUIREMENTS OF 501(C)(3) OF THE
UNITED STATES INTERNAL REVENUE CODE.
2. (A) THE STATE COMPTROLLER IS HEREBY DECLARED TO BE THE TRUSTEE OF
THE TRUST FUND ESTABLISHED PURSUANT TO SUBDIVISION ONE OF THIS SECTION,
AND SHALL MANAGE THE INVESTMENTS OF THE TRUST FUND. THE STATE COMP-
TROLLER SHALL MANAGE THE INVESTMENTS OF THE TRUST FUND IN A CAREFUL AND
PRUDENT MANNER CONSISTENT WITH THE GUIDELINES AND PROVISIONS OF SECTION
NINETY-EIGHT OF THIS ARTICLE.
(B) ANY INTEREST OR OTHER INCOME OR APPRECIATION RESULTING FROM THE
INVESTMENT OF ASSETS OF THE TRUST SHALL ACCRUE TO AND BECOME PART OF THE
ASSETS OF THE TRUST.
(C) THE STATE COMPTROLLER MAY ENTER INTO CONTRACTS TO PROVIDE FOR
INVESTMENT ADVICE AND MANAGEMENT, CUSTODIAL SERVICES, AND OTHER PROFES-
SIONAL SERVICES FOR THE ADMINISTRATION AND INVESTMENT OF THE TRUST.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03912-01-9
A. 3630 2
ADMINISTRATIVE FEES, COSTS AND EXPENSES, INCLUDING INVESTMENT FEES AND
EXPENSES, SHALL BE PAID FROM THE ASSETS OF THE TRUST FUND.
3. THE NEW YORK STATE CHARITABLE HEALTH AND EDUCATION TRUST FUND IS
ESTABLISHED FOR THE EXCLUSIVE BENEFIT OF ENTITIES THAT (A) PROVIDE
HEALTH CARE OR EDUCATIONAL SERVICES AND/OR RESOURCES IN NEW YORK STATE
AND (B) CONTRIBUTIONS TO WHICH WOULD QUALIFY FOR THE CHARITABLE
DEDUCTION UNDER THE UNITED STATES INTERNAL REVENUE CODE.
4. (A) THE TRUST FUND SHALL CONSIST OF ALL DONATIONS RECEIVED, AND ALL
OTHER MONEYS APPROPRIATED, CREDITED, OR TRANSFERRED THERETO FROM ANY
OTHER FUND OR SOURCE PURSUANT TO LAW. ANY INTEREST, INCOME OR APPRECI-
ATION EARNED BY THE INVESTMENT OF MONEYS IN SUCH TRUST FUND SHALL BE
ADDED TO SUCH TRUST FUND, BECOME A PART OF SUCH TRUST FUND, AND BE USED
FOR THE PURPOSE OF SUCH TRUST FUND.
(B) THE COMPTROLLER SHALL ESTABLISH THE PROCESS BY WHICH SUCH TRUST
FUND SHALL RECEIVE DONATIONS AND, IN CONSULTATION WITH THE DEPARTMENT OF
TAXATION AND FINANCE, SHALL PROVIDE DONORS TO THE TRUST FUND WITH A
RECEIPT INCLUDING THE DONOR'S NAME, THE AMOUNT OF SUCH DONATION AND ANY
OTHER INFORMATION REQUIRED BY THE DEPARTMENT OF TAXATION AND FINANCE FOR
SUCH DONORS TO QUALIFY FOR THE TAX CREDIT ESTABLISHED PURSUANT TO
SECTION SIX HUNDRED SIX OF THE TAX LAW.
(C) THE MONEYS IN SUCH TRUST FUND SHALL BE TRANSFERRED ONLY FOR
PROVIDING AID TO ENTITIES DESCRIBED IN SUBDIVISION THREE OF THIS
SECTION. PRIOR TO MAKING DISTRIBUTIONS FROM THE TRUST FUND, THE STATE
COMPTROLLER, IN CONSULTATION WITH THE DIRECTOR OF THE BUDGET, SHALL
EVALUATE HEALTH CARE AND EDUCATION NEEDS IN THE STATE TO DETERMINE WHICH
ENTITIES SHALL RECEIVE DISTRIBUTIONS AND THE AMOUNT OF SUCH DISTRIB-
UTIONS.
(D) THE STATE COMPTROLLER SHALL PROVIDE FOR THE ADMINISTRATION OF THE
TRUST FUND, INCLUDING MAINTAINING DONOR RECORDS, AND PROVIDING ANNUAL
AUDITED REPORTS.
§ 2. Section 606 of the tax law is amended by adding a new subsection
(jjj) to read as follows:
(JJJ) NEW YORK STATE CHARITABLE HEALTH AND EDUCATION TRUST FUND
DONATION TAX CREDIT. (1) GENERAL. A TAXPAYER SHALL BE ALLOWED A CREDIT,
TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST THE TAX IMPOSED
BY THIS ARTICLE FOR ANY DONATIONS MADE TO THE NEW YORK STATE CHARITABLE
HEALTH AND EDUCATION TRUST FUND ESTABLISHED PURSUANT TO SECTION NINETY-
NINE-FF OF THE STATE FINANCE LAW.
(2) AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SUBSECTION SHALL
EQUAL THE TOTAL DOLLAR AMOUNT OF DONATIONS TO THE NEW YORK STATE CHARI-
TABLE HEALTH AND EDUCATION TRUST FUND MADE BY THE TAXPAYER DURING THE
TAXABLE YEAR.
(3) RECORD OF DONATION. TO CLAIM A CREDIT UNDER THIS SUBSECTION, AN
ELIGIBLE TAXPAYER SHALL PROVIDE THE DEPARTMENT WITH A RECEIPT OF
DONATION ISSUED PURSUANT TO SUBDIVISION FOUR OF SECTION NINETY-NINE-FF
OF THE STATE FINANCE LAW.
(4) CARRYOVER OF CREDIT. IF THE AMOUNT OF THE CREDIT, AND CARRYOVERS
OF SUCH CREDIT, ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR
SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, SUCH EXCESS AMOUNT MAY BE
CARRIED OVER TO THE FOUR TAXABLE YEARS NEXT FOLLOWING THE TAXABLE YEAR
WITH RESPECT TO WHICH THE CREDIT IS ALLOWED AND MAY BE DEDUCTED FROM THE
TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
(5) TRANSFER OF CREDIT. ANY TAXPAYER MAY TRANSFER IN PART, OR IN FULL,
THE NEW YORK STATE CHARITABLE HEALTH AND EDUCATION TRUST FUND DONATION
TAX CREDIT TO ANOTHER PERSON OR ENTITY FOR USE AGAINST TAX IMPOSED UNDER
THIS ARTICLE. IN ORDER FOR THE TRANSFEREE TO APPLY THE CREDIT AGAINST
A. 3630 3
TAXES FOR A PARTICULAR YEAR, THE TRANSFEREE SHALL HAVE ACQUIRED THE
CREDIT ON OR BEFORE THE DATE UPON WHICH THE TRANSFEREE'S TAXES ARE DUE
(WITHOUT EXTENSIONS) FOR THE YEAR IN QUESTION. A TRANSFEROR AND A TRANS-
FEREE SHALL NOTIFY THE DEPARTMENT OF ANY CREDIT TRANSFER.
§ 3. This act shall take effect on the ninetieth day after it shall
have become a law and shall apply to taxable years beginning on or after
January 1, 2019; provided, however, that effective immediately, the
addition, amendment and/or repeal of any rule or regulation necessary
for the implementation of this act on its effective date are authorized
and directed to be made and completed on or before such effective date.