S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4574
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 17, 2023
                                ___________
 
 Introduced  by  M. of A. STECK, JACOBSON, STIRPE, BURKE, EPSTEIN, SIMON,
   LUPARDO,  HUNTER,  REYES,  WILLIAMS,  KIM,  BENEDETTO,   L. ROSENTHAL,
   JOYNER,  WALLACE,  FAHY,  DINOWITZ,  CRUZ,  RIVERA,  TAYLOR,  DICKENS,
   GUNTHER,   SEAWRIGHT,   CARROLL,   GLICK,   DAVILA,   COOK,   BRONSON,
   BICHOTTE HERMELYN, DARLING, ANDERSON, WALKER, MEEKS, KELLES, LUNSFORD,
   JEAN-PIERRE, ZINERMAN, CLARK, BURDICK, FALL, SILLITTI, SEPTIMO -- read
   once and referred to the Committee on Ways and Means
 
 AN  ACT to amend the state finance law, in relation to the repeal of the
   rebate for stock transfer tax paid and the funds of the stock transfer
   tax fund and the dedicated infrastructure investment  fund;  to  amend
   the  environmental  conservation  law, in relation to establishing the
   safe water infrastructure action program for  the  purpose  of  making
   payments  toward  the replacement and rehabilitation of existing local
   municipally-owned and funded drinking water, storm water and  sanitary
   sewer  systems;  to amend the tax law, in relation to taxes imposed in
   certain transactions; to repeal section 280-a of the tax law  relating
   to  the  rebate for stock transfer tax paid; to repeal section 92-i of
   the state finance law relating to the stock transfer  incentive  fund;
   and  to  repeal  certain  provisions of the administrative code of the
   city of New York relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 280-a of the tax law is REPEALED.
   § 2. Section 92-i of the state finance law is REPEALED.
   §  3. Section 92-b of the state finance law, as added by chapter 91 of
 the laws of 1965, subdivision 3 as amended by chapter 878 of the laws of
 1977, subdivision 4 as amended by chapter  724  of  the  laws  of  1979,
 subdivision  5  as added and subdivision 6 as renumbered by section 2 of
 chapter 3 of the laws of 1966, subdivision 7 as added by section  10  of
 part  SS1  of  chapter 57 of the laws of 2008 and such section as renum-

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04823-01-3
 A. 4574                             2
              

 
 bered by section 1 of chapter 3 of the laws of 1966, is amended to  read
 as follows:
   § 92-b. Stock transfer tax fund. 1. There is hereby established in the
 custody  of  the commissioner of taxation and finance a special fund, to
 be known as the stock transfer tax fund.
   2. Such fund shall consist of the  revenues  derived  from  the  stock
 transfer  tax  imposed  by  article  twelve of the tax law and all other
 moneys credited or transferred thereto from any  other  fund  or  source
 pursuant to law.
   3.  The moneys received from such tax and other sources in such fund[,
 after deducting the amount the  commissioner  of  taxation  and  finance
 shall  determine to be necessary for] SHALL BE USED TO COVER THE reason-
 able costs of the state tax commission in administering, collecting  and
 distributing  [such]  THE STOCK TRANSFER tax, commencing with the fiscal
 year ending March thirty-first,  [nineteen  hundred  seventy-seven]  TWO
 THOUSAND  TWENTY-FIVE,  [shall  be  appropriated  to  (i)  the municipal
 assistance corporation for the city of  New  York  created  pursuant  to
 title  three  of  article  ten of the public authorities law in order to
 enable such corporation to fulfill the terms of any agreements made with
 the holders of its notes and  bonds  and  to  carry  out  its  corporate
 purposes  including the maintenance of the capital reserve fund and (ii)
 to the extent such moneys  are  not  required  by  such  corporation  as
 provided  in  subdivision  seven of section ninety-two-d of this chapter
 and, after deducting the amount such commissioner shall determine to  be
 necessary  for  reasonable costs of the state tax commission in adminis-
 tering and making distributions in accordance  with  the  provisions  of
 section  two  hundred  eighty-a  of  the tax law from the stock transfer
 incentive fund, to the stock transfer incentive fund created pursuant to
 section ninety-two-i of this chapter to enable rebates to be  made  from
 such  fund  under  the provisions of section two hundred eighty-a of the
 tax law and (iii) to the extent such moneys are  not  required  by  such
 fund,  as  certified  by  the  commissioner of taxation and finance, the
 balance shall be appropriated to the city of New York, for  the  support
 of  local  government.]  AND  THE  REMAINDER SHALL BE DEPOSITED INTO THE
 STATE GENERAL FUND. COMMENCING WITH THE FISCAL YEAR ENDING  MARCH  THIR-
 TY-FIRST,  TWO  THOUSAND  TWENTY-FIVE, SUCH REMAINDER SHALL BE DEPOSITED
 INTO THE FOLLOWING FUNDS:
   (I) TWENTY-FIVE PERCENT SHALL BE DIRECTED TO THE  METROPOLITAN  TRANS-
 PORTATION  AUTHORITY  FINANCIAL  ASSISTANCE FUND ESTABLISHED PURSUANT TO
 SECTION NINETY-TWO-FF OF THIS ARTICLE, OF WHICH FIFTY PERCENT  SHALL  BE
 USED  FOR  THE PURPOSE OF OPERATIONS AND FIFTY PERCENT SHALL BE USED FOR
 THE PURPOSE OF CAPITAL PROJECTS;
   (II) TEN PERCENT SHALL BE DIRECTED TO  THE  DIVISION  OF  HOUSING  AND
 COMMUNITY RENEWAL FOR THE PURPOSE OF CAPITAL PROJECTS AND OTHER IMPROVE-
 MENTS TO ADDRESS ISSUES RELATING TO CONDITIONS OF GOVERNANCE AND HABITA-
 BILITY,  INCLUDING BUT NOT LIMITED TO, HEATING, MOLD, OR LEAD, AND OTHER
 SUCH CONDITIONS AFFECTING THE HEALTH AND SAFETY OF  TENANTS  AT  HOUSING
 DEVELOPMENTS OWNED OR OPERATED BY THE NEW YORK CITY HOUSING AUTHORITY;
   (III)  FIFTEEN  PERCENT  SHALL  BE  DIRECTED TO THE HIGHWAY AND BRIDGE
 CAPITAL ACCOUNT IN THE DEDICATED HIGHWAY AND BRIDGE  TRUST  FUND  ESTAB-
 LISHED PURSUANT TO SECTION EIGHTY-NINE-B OF THIS ARTICLE;
   (IV)  NINE  PERCENT  SHALL  BE  DIRECTED  TO THE DEDICATED HIGHWAY AND
 BRIDGE TRUST FUND ESTABLISHED PURSUANT TO SECTION EIGHTY-NINE-B OF  THIS
 ARTICLE,  TO  BE  DIRECTED  TOWARDS  THE INFRASTRUCTURE, MAINTENANCE AND
 DEVELOPMENT OF RAIL LINES FOR AMTRAK IN THE NORTHEAST CORRIDOR;
 A. 4574                             3
 
   (V) FIVE PERCENT SHALL BE DIRECTED TO THE LOCAL INFRASTRUCTURE ACCOUNT
 OF THE GENERAL FUND ESTABLISHED PURSUANT TO SECTION SEVENTY-TWO OF  THIS
 ARTICLE  TO  BE  DIRECTED  TO  THE CONSOLIDATED LOCAL STREET AND HIGHWAY
 IMPROVEMENT PROGRAM (CHIPS);
   (VI)  FIVE  PERCENT  SHALL  BE  DIRECTED  TO  THE LOCAL INFRASTRUCTURE
 ACCOUNT OF THE GENERAL FUND TO  BE  DEDICATED  TO  THE  SAFE  WATER  AND
 INFRASTRUCTURE  ACTION  PROGRAM  AS ESTABLISHED BY SECTION 3-0323 OF THE
 ENVIRONMENTAL CONSERVATION LAW;
   (VII) FIVE PERCENT SHALL BE DIRECTED TO THE MUNICIPAL ASSISTANCE STATE
 AID FUND ESTABLISHED PURSUANT TO SECTION NINETY-TWO-E OF THIS ARTICLE;
   (VIII) FOUR PERCENT SHALL BE DIRECTED TO THE DEDICATED MASS  TRANSPOR-
 TATION  TRUST  FUND  TO THE CREDIT OF THE NON-MTA ACCOUNT FOR PAYMENT TO
 DOWNSTATE TRANSIT SYSTEMS OTHER THAN THOSE TRANSIT SYSTEMS  OPERATED  BY
 THE METROPOLITAN TRANSPORTATION AUTHORITY;
   (IX)  FOUR PERCENT SHALL BE DIRECTED TO THE DEDICATED MASS TRANSPORTA-
 TION TRUST FUND TO THE CREDIT OF THE  NON-MTA  ACCOUNT  FOR  PAYMENT  TO
 UPSTATE TRANSIT SYSTEMS;
   (X) THIRTEEN PERCENT SHALL BE DIRECTED TO THE ENERGY RESEARCH DEVELOP-
 MENT  OPERATING  FUND  PURSUANT  TO  THE  PROVISIONS OF SECTION EIGHTEEN
 HUNDRED FIFTY-NINE OF THE PUBLIC AUTHORITIES LAW, TO BE DIRECTED TO  THE
 CLEAN ENERGY FUND AND SHALL BE DIVIDED EQUALLY AMONG THE FOUR INVESTMENT
 PORTFOLIOS THAT MAKE UP SUCH FUND;
   (XI) TWO AND ONE-HALF PERCENT SHALL BE DIRECTED TO THE CITY UNIVERSITY
 OF  NEW  YORK,  OF  WHICH FIFTY PERCENT SHALL BE USED FOR THE PURPOSE OF
 CAPITAL IMPROVEMENTS AND INFRASTRUCTURE PROJECTS AND FIFTY PERCENT SHALL
 BE USED FOR THE PURPOSE OF SUPPORTING ACADEMIC PROGRAMS AT CITY  OF  NEW
 YORK INSTITUTIONS; AND
   (XII)  TWO AND ONE-HALF PERCENT SHALL BE DIRECTED TO THE STATE UNIVER-
 SITY OF NEW YORK INSTITUTIONS, OF WHICH FIFTY PERCENT SHALL BE USED  FOR
 THE  PURPOSES  OF  SUPPORTING  AND  EXPANDING SERVICES AND CARE AT STATE
 UNIVERSITY OF NEW YORK HOSPITALS, STATE UNIVERSITY OF NEW YORK  ACADEMIC
 MEDICAL  CENTERS  AND  FIFTY  PERCENT  SHALL  BE USED FOR THE PURPOSE OF
 SUPPORTING ACADEMIC PROGRAMS AT STATE  UNIVERSITY  OF  NEW  YORK  INSTI-
 TUTIONS.
   4.  [After  the deduction of such costs of the state tax commission in
 administering, collecting and distributing such tax, the balances in the
 stock transfer tax fund so appropriated shall be distributed and paid on
 the last business day of September, December, March and  June  into  the
 special account established for the municipal assistance corporation for
 the  city  of  New York in the municipal assistance tax fund established
 pursuant to subdivision one of section  ninety-two-d  of  this  chapter,
 unless  and to the extent the balances in such fund on each such payment
 day are not required by such corporation as provided in said subdivision
 seven of said section ninety-two-d in which  case  the  balance  not  so
 required,  if  any,  after  the deduction of such costs of the state tax
 commission in administering and making distributions in accordance  with
 the  provisions  of section two hundred eighty-a of the tax law from the
 stock transfer incentive fund shall be distributed and paid to the stock
 transfer incentive fund in the custody of the commissioner  of  taxation
 and finance established pursuant to section ninety-two-i of this chapter
 and unless and to the extent that the balances in the stock transfer tax
 fund  on  each  such  payment day are not required by the stock transfer
 incentive fund as provided in such section ninety-two-i of this  chapter
 in  which case the balance not so required, if any, shall be distributed
 and paid to the chief fiscal officer of the city of New York to be  paid
 into  the treasury of the city to the credit of the general fund or paid
 A. 4574                             4

 by the commissioner of taxation and finance to  such  other  account  or
 fund  as  may  be  designated in writing by such chief fiscal officer at
 least ten business days prior to such last day and on each such day, the
 commissioner  of  taxation  and finance shall certify to the comptroller
 the amount deducted for administering, collecting and distributing  such
 tax  during  such  quarterly  period  and shall pay such amount into the
 general fund of the state treasury to the credit of the  state  purposes
 fund  therein. In no event shall any amount (other than the amount to be
 deducted for administering, collecting and  distributing  such  tax)  be
 distributed or paid from the stock transfer tax fund to any person other
 than  the  municipal  assistance  corporation  for  the city of New York
 unless and until the aggregate of all payments certified  to  the  comp-
 troller  as  required  by  such  corporation in order to comply with its
 agreements with the holders of its notes and bonds and to carry out  its
 corporate  purposes,  including  the  maintenance of the capital reserve
 fund, which remain unappropriated or unpaid to  such  corporation  shall
 have  been  appropriated to such corporation and shall have been paid in
 full provided, however, that no person, including  such  corporation  or
 the  holders  of  its notes or bonds shall have any lien on such tax and
 such agreements shall be executory only to the extent  of  the  balances
 available  to  the  state in such fund. If the balances in such fund are
 not required by such corporation pursuant  to  the  provisions  of  this
 subdivision,  on  each  such  last  business day of September, December,
 March and June, the commissioner of taxation and finance  shall  certify
 to  the  comptroller  the  amount  deducted for administering and making
 distributions in accordance with the provisions of section  two  hundred
 eighty-a  of  the  tax law from the stock transfer incentive fund during
 such quarterly period and he shall pay such amount into the general fund
 of the state treasury to the credit of the state purposes fund  therein.
 To  the  extent  such  moneys  are  not required by such corporation, as
 provided in subdivision seven of section ninety-two-d of  this  chapter,
 no amount thereof (other than such amount to be deducted for administer-
 ing,  collecting and distributing such tax and such costs in administer-
 ing and making  distributions  in  accordance  with  the  provisions  of
 section  two  hundred  eighty-a  of  the tax law from the stock transfer
 incentive fund) shall be distributed or paid from the stock transfer tax
 fund other than to such stock transfer incentive fund in the custody  of
 the  commissioner of taxation and finance unless and until the aggregate
 of all payments certified to the comptroller by such commissioner pursu-
 ant to the provisions of such incentive fund  as  necessary  to  provide
 payments  on  account  of  rebates  authorized  pursuant  to section two
 hundred eighty-a of the tax law which remain unappropriated or unpaid to
 such fund shall have been appropriated to such fund and shall have  been
 paid  in  full provided, however, that no person, including any taxpayer
 under article twelve of the tax law or any member or dealer referred  to
 in  subdivisions  two-a  and six of section two hundred eighty-a of such
 law, shall have any lien on this fund or the  stock  transfer  incentive
 fund.
   5.  In no fiscal year shall the total amount paid from the fund exceed
 the total collections during such fiscal year from  the  stock  transfer
 tax  pursuant  to the provisions of article twelve of the tax law and as
 deposited to the credit of the stock transfer tax fund.
   6.] All payments from the stock transfer tax fund shall be made on the
 audit and warrant of the comptroller on vouchers approved by the commis-
 sioner of taxation and finance.
 A. 4574                             5
 
   [7. When all the notes and bonds of the  municipal  assistance  corpo-
 ration  for  the  city  of New York have been fully paid and discharged,
 together with interest thereon and interest on  unpaid  installments  of
 interest,  and  the  chairman of the corporation makes the final certif-
 ication  required  by  subdivision seven of section ninety-two-d of this
 article, the comptroller must notify the commissioner  of  taxation  and
 finance  that  all  remaining  funds held in the stock transfer tax fund
 must be released to the stock transfer incentive fund.  From  that  time
 forward,  all  funds previously deposited in the stock transfer tax fund
 pursuant to subdivision two of this section will be  deposited  directly
 into  the stock transfer incentive fund pursuant to all the rules, regu-
 lations or instructions  that  the  commissioner  may  prescribe,  after
 deducting  the  amount  the  commissioner determines to be necessary for
 reasonable costs of the  department  in  administering,  collecting  and
 distributing  the tax imposed by article twelve of the tax law. Notwith-
 standing any other provisions of  this  article,  to  the  extent  those
 moneys  are  not  required  by the stock transfer incentive fund for the
 purpose of administering and making distributions in accordance with the
 provisions of section two hundred eighty-a of the tax law, as  certified
 by  the commissioner of taxation and finance, the balance will be appro-
 priated to the city of New York for the support of local government.]
   § 4. Paragraph (c) of subdivision 1  of  section  93-b  of  the  state
 finance  law,  as added by section 1 of part H of chapter 60 of the laws
 of 2015, is amended to read as follows:
   (c) Sources of funds. The sources of funds shall consist of all moneys
 collected therefor, or  moneys  credited,  appropriated  or  transferred
 thereto  from  any  other  fund  or  source pursuant to law or any other
 moneys made available for the purposes of the fund,  INCLUDING  BUT  NOT
 LIMITED  TO  FUNDS TRANSFERRED FROM THE STOCK TRANSFER TAX FUND PURSUANT
 TO SUBDIVISION THREE OF SECTION NINETY-TWO-B OF THIS ARTICLE  AND  FUNDS
 TRANSFERRED  FROM  THE  STOCK  TRANSFER  INCENTIVE  FUND  ESTABLISHED BY
 SECTION NINETY-TWO-I OF THIS ARTICLE AND REPEALED BY A  CHAPTER  OF  THE
 LAWS  OF  TWO  THOUSAND TWENTY-THREE, WHICH AMENDED THIS PARAGRAPH.  Any
 interest received by the comptroller  on  moneys  on  deposit  shall  be
 retained and become part of the fund, unless otherwise directed by law.
   §  5.  Subdivision (c) of section 11-503 of the administrative code of
 the city of New York is REPEALED.
   § 6. Subdivision 12 of section 11-604 of the  administrative  code  of
 the city of New York is REPEALED.
   §  7.  All  monies  accumulated  in  the stock transfer incentive fund
 established pursuant to section 92-i of the state  finance  law  on  the
 effective date of this act shall be transferred to the dedicated infras-
 tructure  investment  fund  as  established by section 93-b of the state
 finance law for the purposes set forth in such section.
   § 8. The environmental conservation law is amended  by  adding  a  new
 section 3-0323 to read as follows:
 § 3-0323. SAFE WATER AND INFRASTRUCTURE ACTION PROGRAM.
   1.  NOTWITHSTANDING  ANY OTHER PROVISIONS OF THIS CHAPTER OR ANY OTHER
 LAW AND SUBJECT TO AN APPROPRIATION MADE THEREFOR AND IN ACCORDANCE WITH
 THE PROVISIONS OF THIS  SECTION  AND  WITH  THE  RULES  AND  REGULATIONS
 PROMULGATED  BY  THE  COMMISSIONER IN CONNECTION THEREWITH, ON AND AFTER
 THE FIRST DAY OF APRIL, TWO THOUSAND TWENTY-FOUR, A  CONSOLIDATED  LOCAL
 INFRASTRUCTURE  PROGRAM  IS HEREBY ESTABLISHED FOR THE PURPOSE OF MAKING
 PAYMENTS TOWARD THE REPLACEMENT AND  REHABILITATION  OF  EXISTING  LOCAL
 MUNICIPALLY-OWNED  AND  FUNDED  DRINKING WATER, STORM WATER AND SANITARY
 SEWER SYSTEMS. FOR PURPOSES OF THIS SECTION, SUCH PROGRAM SHALL APPLY TO
 A. 4574                             6
 
 ANY COUNTY, CITY, TOWN OR VILLAGE DRINKING  WATER  SYSTEM,  STORM  WATER
 SYSTEM  OR  SANITARY SEWER SYSTEM WITHIN THE STATE THAT IS NOT UNDER THE
 MAINTENANCE AND/OR OPERATIONAL JURISDICTION OF THE STATE NOR ANY PRIVATE
 ENTITY.  THE COMMISSIONER, IN CONJUNCTION WITH THE ENVIRONMENTAL FACILI-
 TIES CORPORATION, SHALL PROMULGATE ALL NECESSARY RULES  AND  REGULATIONS
 TO  CARRY OUT THE PROGRAM SO THAT AN EQUITABLE DISTRIBUTION OF AID SHALL
 BE MADE FOR THE GENERAL OPERATION  AND/OR  GENERAL  MAINTENANCE  OF  ANY
 EXISTING  COUNTY,  CITY,  TOWN  AND VILLAGE DRINKING WATER SYSTEM, STORM
 WATER SYSTEM OR SANITARY SEWER SYSTEM.
   2. ON OR BEFORE THE TWENTY-FIFTH DAY OF  APRIL,  JUNE,  SEPTEMBER  AND
 NOVEMBER OF EACH STATE FISCAL YEAR COMMENCING WITH THE STATE FISCAL YEAR
 BEGINNING  ON  APRIL  FIRST,  TWO  THOUSAND  TWENTY-FIVE, THERE SHALL BE
 DISTRIBUTED AND PAID TO COUNTIES, CITIES, TOWNS AND VILLAGES  AN  AMOUNT
 EQUAL  TO  THE  MONEYS  APPROPRIATED  FOR  THE  PURPOSES OF THIS SECTION
 DIVIDED BY THE NUMBER OF PAYMENT DATES IN THAT STATE FISCAL  YEAR.  SUCH
 AMOUNTS  SHALL  BE DISTRIBUTED AND PAID PURSUANT TO SUBDIVISION THREE OF
 THIS SECTION.
   3. AMOUNTS SHALL BE DISTRIBUTED FOR LOCAL DRINKING WATER, STORM  WATER
 AND  SANITARY SEWER SYSTEMS BASED UPON THE TOTAL LENGTH AND WIDTH OF ALL
 PIPELINES AND MAINS OWNED AND OPERATED BY THE MUNICIPALITY.
   4. MONIES MADE AVAILABLE MAY BE USED TO MATCH OTHER STATE AND  FEDERAL
 FUNDS  MADE  AVAILABLE FOR SUCH PROJECTS.  THE FUNDS MAY ALSO BE USED TO
 SUPPORT SPECIAL IMPROVEMENT DISTRICTS CREATED TO PROVIDE DRINKING WATER,
 WASTE WATER AND STORM WATER SERVICES UNDER  ARTICLES  TWELVE,  TWELVE-A,
 TWELVE-C  AND THIRTEEN OF THE TOWN LAW.  THE REMAINDER OF THE APPORTION-
 MENT MAY BE USED FOR ANY EXISTING DRINKING WATER, STORM WATER  OR  SEWER
 SYSTEM PURCHASES, INCLUDING BUT NOT LIMITED TO, THE ACQUISITION OF MATE-
 RIALS FOR THE REPLACEMENT OR REHABILITATION.
   5.  FOR  ANY  CITY,  TOWN,  OR  VILLAGE  WHICH PROPOSES INFRASTRUCTURE
 CONSOLIDATION UNDER THIS SECTION OR MERGES  WITH  ANOTHER  MUNICIPALITY,
 THE FUNDS APPROPRIATED UNDER THIS SECTION MAY FUND COSTS ASSOCIATED WITH
 SUCH CONSOLIDATION.
   6.  FOR  EACH FISCAL YEAR, STARTING IN TWO THOUSAND TWENTY-FIVE, FUNDS
 ARE TO BE MADE AVAILABLE TO THE LOCAL INFRASTRUCTURE ASSISTANCE  ACCOUNT
 OF  THE  GENERAL  FUND,  AND DISTRIBUTED FROM THAT ACCOUNT, IN AN AMOUNT
 THAT IS AT LEAST EQUAL TO THOSE APPROPRIATED AND MADE AVAILABLE  IN  THE
 CONSOLIDATED LOCAL STREET AND HIGHWAY IMPROVEMENT PROGRAM (CHIPS).
   §  9. Subdivision 3 of section 270 of the tax law, as amended by chap-
 ter 301 of the laws of 1967, is amended and two new subdivisions 3-a and
 9 are added to read as follows:
   3.  It shall be the duty of the person or persons [making or  effectu-
 ating the sale or transfer, including the person or persons] to whom the
 sale  or  transfer  is  made,  to  pay the tax provided by this article,
 UNLESS THE PARTIES TO THE SALE OR TRANSFER AGREE TO  OTHERWISE  ALLOCATE
 THE  COST  OF  SUCH  TAX  AMONG THEMSELVES; provided, however, that this
 subdivision shall not apply to any sale or transfer wherein  the  vendor
 or  transferor  is  a  governmental entity or international organization
 which is not subject to the tax.
   3-A. NO PURCHASER OF A STOCK OR OTHER  CERTIFICATE  IN  A  TRANSACTION
 COVERED  UNDER  THIS ARTICLE SHALL HAVE LEGAL TITLE OR OWNERSHIP OF SUCH
 STOCK OR CERTIFICATE UNLESS SUCH PURCHASER HAS PROOF OF PURCHASE  DEMON-
 STRATING  THAT  SUCH  TAX  HAS BEEN PAID.   SUCH PROOF OF PURCHASE SHALL
 CONSIST OF EITHER: (A) A RECEIPT FOR THE TRANSACTION SHOWING  THAT  SUCH
 TAX  HAS  BEEN  PAID,  THE AMOUNT OF SUCH TAX PAID, AND A REPRESENTATION
 THAT SUCH AMOUNT CONSTITUTES PAYMENT IN FULL; OR (B)  A  STAMP  REQUIRED
 PURSUANT TO SUBDIVISION FOUR OF THIS SECTION.
 A. 4574                             7
 
   9.  NOTWITHSTANDING ANY OTHER PROVISION TO THE CONTRARY, A TRANSACTION
 REFERRED TO IN SUBDIVISION ONE OF THIS SECTION IS SUBJECT TO TAX IF  ANY
 ACTIVITY IN FURTHERANCE OF THE TRANSACTION OCCURS WITHIN THE STATE OR IF
 A  PARTY  INVOLVED  IN  THE  TRANSACTION SATISFIES A NEXUS WITH NEW YORK
 STATE WHICH SHALL BE DEFINED AS BROADLY AS IS PERMITTED UNDER THE UNITED
 STATES CONSTITUTION.
   § 10. This act shall take effect immediately.