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
                                ___________
 
 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.