assembly Bill A5277

2015-2016 Legislative Session

Relates to sober living homes

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Sponsored By

Current Bill Status - STRICKEN


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 22, 2015 enacting clause stricken
Feb 17, 2015 referred to alcoholism and drug abuse

Co-Sponsors

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A5277 - Bill Details

Current Committee:
Law Section:
General Business Law
Laws Affected:
Add §210, Gen Bus L; add Art 21 §§21.01 - 21.19, Ment Hyg L; amd §§143-b & 17, Soc Serv L
Versions Introduced in 2013-2014 Legislative Session:
A6791

A5277 - Bill Texts

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Relates to sober living homes; also relates to establishing and enforcing regulations pertaining to such homes.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5277

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            February 17, 2015
                               ___________

Introduced  by  M.  of  A. HEVESI, THIELE, ENGLEBRIGHT, RAMOS, HOOPER --
  read once and referred to the Committee on Alcoholism and Drug Abuse

AN ACT to amend the general business law, in relation to  improving  the
  operation  of  sober  living  homes and to establish and enforce regu-
  lations pertaining to such homes; to amend the mental hygiene law,  in
  relation  to the certification of sober living homes; and to amend the
  social services law, in relation to sober living homes

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Declaration of findings and legislative intent. The legis-
lature hereby finds and declares that there is an urgent need to improve
the operation of sober living homes. A sober living home is intended  to
provide  affordable,  drug and alcohol free environments for persons who
are enrolled in out-patient treatment or recovering from a drug or alco-
hol addiction. The mission of a sober living home is to promote recovery
and allow individuals to become self supporting. In order to  meet  this
mission,  residents  must be afforded a safe, sanitary, and secure envi-
ronment.
  The legislature further finds that far  too  many  sober  living  home
operators  fail to provide the atmosphere necessary for residents. While
there certainly are some well-run sober living homes that truly  aim  to
assist  those  in  recovery,  many of these homes are often overcrowded,
drug and alcohol infested, unsanitary,  and  incompetently  managed.  In
order  to ensure that appropriate living standards are being maintained,
regulations pertaining to the operation of sober living  homes  must  be
established and enforced.
  The  legislature  further  finds and declares that it is the intent of
the legislature to prevent recidivism, injury, and death  among  persons
seeking  housing  in  a  sober living home by establishing and enforcing
operational standards. By ensuring that appropriate standards are estab-
lished and enforced, communities which host a  sober  living  home  will

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02337-01-5

A. 5277                             2

also benefit. By authorizing the state to certify establishments meeting
the  criteria  necessary  to  provide an appropriate environment, and by
allowing localities to inspect the establishments,  safe  and  effective
sober living homes can continue to improve people's lives.
  The  legislature  has further learned that many communities in Suffolk
county are burdened with a  disproportionate  share  of  poorly-operated
sober living homes. Instituting a pilot certification program in Suffolk
county,  administered  by  the  office of alcoholism and substance abuse
services, will ensure that sober living homes  maintain  an  appropriate
environment  without  disrupting  the quality of life in the surrounding
community.
  S 2. The general business law is amended by adding a new  section  210
to read as follows:
  S  210. SOBER LIVING HOMES. 1. A "SOBER LIVING HOME" SHALL MEAN A HOME
LOCATED IN SUFFOLK COUNTY THAT IS OPERATED, WHETHER FOR PROFIT  OR  NOT,
FOR TRANSITIONAL RECOVERY PURPOSES OF INDIVIDUALS AFFLICTED WITH ALCOHOL
OR  SUBSTANCE  ABUSE DEPENDENCIES. SUCH HOMES SHALL HAVE, AS ITS PRIMARY
PURPOSE, THE REINTEGRATION OF SUCH AFFLICTED PERSONS INTO  SOCIETY  WITH
ACCOMPANYING  MONITORING AND SUPPORT, AND SHALL PROVIDE A SAFE, SUPPORT-
IVE, DRUG FREE LIVING ENVIRONMENT. HOMES ESTABLISHED AS "HALF-WAY HOUSES
OR HOMES" AND/OR "RECOVERY HOUSES OR HOMES" SHALL BE  INCLUDED  IN  THIS
DEFINITION.
  2.  AN OWNER, OPERATOR, OR LANDLORD, MAY NOT HOLD THEMSELVES OUT TO BE
OR ADVERTISE TO BE A "SOBER LIVING HOME" IN SUFFOLK COUNTY  UNLESS  THEY
ARE  CERTIFIED  BY, AND REMAIN IN GOOD STANDING WITH, THE NEW YORK STATE
OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES.
  3. ANY VIOLATION OF THIS SECTION SHALL RESULT IN A FINE IN THE  AMOUNT
OF TEN THOUSAND DOLLARS.
  S  3.  The mental hygiene law is amended by adding a new article 21 to
read as follows:
                               ARTICLE 21
                   CERTIFICATION OF SOBER LIVING HOMES
SECTION 21.01 AUTHORITY.
        21.03 DEFINITION.
        21.05 CERTIFICATION PROCESS.
        21.07 CERTIFICATION FEE.
        21.09 REVOCATION OF CERTIFICATES.
        21.11 INSPECTIONS.
        21.13 VIOLATIONS.
        21.15 EXCLUSIVITY OF SOBER LIVING HOME TITLE.
        21.17 LISTING OF CERTIFIED SOBER LIVING HOMES.
        21.19 TOLL-FREE HOTLINE.
S 21.01 AUTHORITY.
  THE LEGISLATURE HEREBY DECLARES THAT ALCOHOLISM, SUBSTANCE  ABUSE  AND
CHEMICAL  DEPENDENCE  POSE MAJOR HEALTH AND SOCIAL PROBLEMS FOR INDIVID-
UALS. IT HAS BEEN PROVEN THAT TRANSITIONAL LIVING ENVIRONMENTS CAN  HELP
TO  PREVENT  RECIDIVISM  AFTER  AN  INDIVIDUAL HAS CEASED USING ALCOHOL,
ILLEGAL SUBSTANCES AND CHEMICALS. THE TRAGIC, CUMULATIVE AND OFTEN FATAL
CONSEQUENCES OF RECIDIVISM CAN BE PREVENTED THROUGH THE ESTABLISHMENT OF
QUALITY SOBER LIVING HOMES.
  THE LEGISLATURE RECOGNIZES  LOCALLY  IMPLEMENTED  TRANSITIONAL  LIVING
PROGRAMS  AS  AN EFFECTIVE AVENUE TO AVERT RECIDIVISM. THE PRIMARY GOALS
OF REHABILITATION AND RECOVERY ARE TO RESTORE SOCIAL, FAMILY, LIFESTYLE,
VOCATIONAL, AND ECONOMIC SUPPORTS BY STABILIZING AN  INDIVIDUAL'S  PHYS-
ICAL  AND PSYCHOLOGICAL FUNCTIONING. BY ENSURING THAT SOBER LIVING HOMES

A. 5277                             3

ARE OFFERING THE ENVIRONMENT NECESSARY FOR SUCH SUCCESS, POSITIVE TREAT-
MENT OUTCOMES CAN BE FURTHER ATTAINED.
  THE  STATE  OF NEW YORK AND LOCAL GOVERNMENTS HAVE A RESPONSIBILITY TO
COORDINATE THE DELIVERY OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES,
THROUGH  THE ENTIRE PROCESS OF RECOVERY. TO ACCOMPLISH THESE OBJECTIVES,
THE LEGISLATURE DECLARES THAT THE ESTABLISHMENT OF A PILOT  PROGRAM  FOR
CERTIFICATION  OF  SOBER  LIVING HOMES IN SUFFOLK COUNTY WILL PROVIDE AN
INTEGRATED FRAMEWORK TO FURTHER PLAN, OVERSEE, AND REGULATE THE  STATE'S
PREVENTION  AND  TREATMENT NETWORK. IN RECOGNITION OF THE GROWING TRENDS
AND INCIDENCES OF RECIDIVISM, THIS OVERSIGHT ALLOWS THE STATE TO RESPOND
TO  THE  RECOVERY  NEEDS  OF  INDIVIDUALS  SUFFERING  FROM   ALCOHOLISM,
SUBSTANCE ABUSE AND CHEMICAL DEPENDENCY.
S 21.03 DEFINITION.
  FOR  THE  PURPOSES OF THIS SECTION, A "SOBER LIVING HOME" SHALL MEAN A
HOME LOCATED IN SUFFOLK COUNTY THAT IS OPERATED, WHETHER FOR  PROFIT  OR
NOT,  FOR  TRANSITIONAL  RECOVERY PURPOSES OF INDIVIDUALS AFFLICTED WITH
ALCOHOL OR SUBSTANCE ABUSE DEPENDENCIES. SUCH HOMES SHALL HAVE,  AS  ITS
PRIMARY PURPOSE, THE REINTEGRATION OF SUCH AFFLICTED PERSONS INTO SOCIE-
TY  WITH  ACCOMPANYING MONITORING AND SUPPORT, AND SHALL PROVIDE A SAFE,
SUPPORTIVE, DRUG FREE LIVING ENVIRONMENT. HOMES ESTABLISHED AS "HALF-WAY
HOUSES OR HOMES" AND/OR "RECOVERY HOUSES OR HOMES" SHALL BE INCLUDED  IN
THIS DEFINITION.
S 21.05 CERTIFICATION PROCESS.
  (A)  THE  OFFICE  SHALL PROMULGATE RULES AND REGULATIONS NECESSARY FOR
THE IMPLEMENTATION OF A PILOT PROGRAM FOR CERTIFICATION OF SOBER  LIVING
HOMES IN SUFFOLK COUNTY IN COOPERATION WITH THE SUFFOLK GROUP HOME OVER-
SIGHT  BOARD  AND  THE SUFFOLK COUNTY EXECUTIVE.  PROVIDED HOWEVER, THAT
ANY RULES OR REGULATIONS ADOPTED MUST INCLUDE A PROVISION  REQUIRING  AN
INSPECTION  OF THE PROPOSED SOBER LIVING HOME PRIOR TO THE COMPLETION OF
THE CERTIFICATION PROCESS.
  (B) IN ADDITION TO ANY STANDARDS PROMULGATED BY THE OFFICE,  OPERATORS
OF SOBER LIVING HOMES SHALL, AT A MINIMUM:
  (1)  OPERATE IN ACCORDANCE WITH ALL FEDERAL, STATE, AND LOCAL BUILDING
CODES AND ORDINANCES TO THE EXTENT PRACTICABLE IN  ACCORDANCE  WITH  THE
FEDERAL FAIR HOUSING ACT.
  (2)  BE  OPERATED OR MANAGED BY PEOPLE WITH AT LEAST TWO YEARS EMPLOY-
MENT EXPERIENCE WITH PEOPLE WITH SUBSTANCE  ABUSE  DISORDERS.  OPERATORS
MAY NOT HAVE ANY PRIOR FELONY CONVICTIONS.
  (3)  BE  AFFILIATED WITH A TREATMENT PROGRAM APPROVED BY THE OFFICE OF
ALCOHOLISM AND SUBSTANCE ABUSE SERVICES.
  (4) ESTABLISH AND ENFORCE A ZERO TOLERANCE POLICY FOR  ALCOHOLISM  AND
SUBSTANCE ABUSE.
  (5)  PROVIDE  FURNISHED  LIVING  SPACES  IN  ACCORDANCE WITH ALL LOCAL
ZONING AND HOUSING STANDARDS.
  (C) SUCH CERTIFICATE SHALL SPECIFY:
  (1) THE NAME OF THE HOLDER OF THE CERTIFICATE.
  (2) THE ADDRESS TO WHICH THE CERTIFICATE APPLIES.
  (3) THE MAXIMUM NUMBER OF PERSONS TO RESIDE IN THE HOME.
  (D) SUCH CERTIFICATE SHALL BE PUBLICLY DISPLAYED AT THE HOME.
  (E) CERTIFICATES  ARE  NON-TRANSFERABLE  TO  NEW  OWNERSHIP  OR  OTHER
LOCATIONS.
  (F)  NOTHING  IN  THIS  SECTION SHALL RELIEVE CERTIFICATE HOLDERS FROM
COMPLYING WITH OTHER PROVISIONS OF THIS ARTICLE,  NOR  SHALL  POWERS  OR
DUTIES  OF THE OFFICE GRANTED OR IMPOSED BY OTHER SECTIONS OF THIS ARTI-
CLE BE CIRCUMSCRIBED BY THIS SECTION. FURTHER, NOTHING IN  THIS  SECTION
SHALL  RELIEVE  CERTIFICATE HOLDERS FROM COMPLYING WITH OTHER APPLICABLE

A. 5277                             4

PROVISIONS OF SUFFOLK COUNTY LAW OR REGULATION WHICH DO NOT VIOLATE THIS
ARTICLE.
S 21.07 CERTIFICATION FEE.
  THE  OFFICE  IS  HEREBY AUTHORIZED TO IMPOSE A REASONABLE FEE TO APPLY
FOR A CERTIFICATE. THE OFFICE IS ALSO AUTHORIZED TO COLLECT  A  BIANNUAL
RE-CERTIFICATION FEE OF FIVE HUNDRED DOLLARS FROM APPLICANTS AND HOLDERS
OF  SOBER  LIVING  HOME  CERTIFICATES  IN ORDER TO IMPLEMENT THE CERTIF-
ICATION PROCESS AND OVERSEE COMPLIANCE THEREWITH. CERTIFICATION MUST  BE
RENEWED  EVERY  TWO YEARS. ONE-HALF OF THE REVENUE GENERATED BY THIS FEE
SHALL BE REMITTED TO SUFFOLK COUNTY.  THE OFFICE SHALL HAVE THE AUTHORI-
TY TO WAIVE THIS FEE AT ITS DISCRETION.
S 21.09 REVOCATION OF CERTIFICATES.
  (A) THE OFFICE SHALL HAVE THE AUTHORITY TO REVOKE A CERTIFICATE  IF  A
SOBER  LIVING  HOME  CEASES  TO  MEET THE STANDARDS PROVIDED OR WITH THE
PROVISIONS OF ANY OTHER APPLICABLE STATE OR SUFFOLK COUNTY LAW OR  REGU-
LATION.  THE  HOLDER  OF  THE CERTIFICATE SHALL BE GIVEN AT LEAST THIRTY
DAYS WRITTEN NOTICE AND THE OPPORTUNITY TO BE HEARD PRIOR TO REVOCATION.
  (B) THE COMMISSIONER MAY IMMEDIATELY REVOKE A CERTIFICATE IF THERE ARE
REASONABLE GROUNDS TO BELIEVE THAT THE CONTINUED OPERATION OF THE  SOBER
LIVING HOME PRESENTS AN IMMEDIATE DANGER TO RESIDENTS OF THE HOME OR THE
GENERAL  PUBLIC.  SUCH ACTION MUST BE MADE IN WRITING TO THE CERTIFICATE
HOLDER, AND MAY LAST NO LONGER THAN THIRTY DAYS, DURING WHICH  TIME  THE
COMMISSIONER  SHALL  MAKE A FINAL DETERMINATION AFTER GIVING THE CERTIF-
ICATE HOLDER AN OPPORTUNITY TO BE HEARD.
S 21.11 INSPECTIONS.
  THE OFFICE SHALL, IN COORDINATION WITH THE SUFFOLK  COUNTY  DEPARTMENT
OF  COMMUNITY  MENTAL HYGIENE SERVICES, PROMULGATE RULES AND REGULATIONS
REGARDING THE INSPECTION OF CERTIFIED SOBER LIVING  HOMES  IN  ORDER  TO
ENSURE  THAT  EACH  HOME  IS IN COMPLIANCE WITH ALL APPLICABLE RULES AND
REGULATIONS.
S 21.13 VIOLATIONS.
  ANY CERTIFIED SOBER LIVING HOME THAT IS FOUND BY THE OFFICE TO  BE  IN
VIOLATION  OF  ANY PROVISION OF THIS ARTICLE OR ANY OTHER STATE, COUNTY,
TOWN, OR VILLAGE LAW OR REGULATION MAY BE FINED. A FINE MAY  BE  IMPOSED
FOR EACH DAY THAT A SOBER LIVING HOME REMAINS IN VIOLATION OF THIS ARTI-
CLE  OR  ANY OTHER STATE OR COUNTY LAW OR REGULATION. THE DAILY FINE MAY
NOT EXCEED ONE THOUSAND DOLLARS PER DAY, AND IN NO EVENT MAY  THE  TOTAL
FINE  AMOUNT  EXCEED  FIVE  THOUSAND  DOLLARS  ANNUALLY EXCEPT FOR FINES
ISSUED PURSUANT TO SECTION TWO HUNDRED TEN OF THE GENERAL BUSINESS  LAW.
SUCH  FINE MAY BE IN LIEU OF, OR IN ADDITION TO, CERTIFICATE REVOCATION.
ONE-HALF OF ANY FINES ASSESSED SHALL BE REMITTED TO SUFFOLK COUNTY.
S 21.15 EXCLUSIVITY OF SOBER LIVING HOME TITLE.
  NO OWNER, OPERATOR OR LANDLORD MAY HOLD A PROPERTY OUT TO BE OR ADVER-
TISE A PROPERTY AS A SOBER HOME OR SOBER LIVING HOME IN  SUFFOLK  COUNTY
UNLESS THE PROPERTY IS CERTIFIED BY THE OFFICE.
S 21.17 LISTING OF CERTIFIED SOBER LIVING HOMES.
  THE  OFFICE SHALL MAINTAIN AN ONLINE LISTING, AVAILABLE TO THE PUBLIC,
OF ALL CERTIFIED SOBER LIVING HOMES IN SUFFOLK COUNTY WHICH ARE IN  GOOD
STANDING.
S 21.19 TOLL-FREE HOTLINE.
  THE  OFFICE  SHALL ESTABLISH A TOLL-FREE TELEPHONE LINE TO RECEIVE AND
RESPOND TO COMPLAINTS REGARDING SOBER LIVING HOMES IN SUFFOLK COUNTY.
  S 4. Paragraph (vii) of subdivision (g), subdivisions (h) and  (i)  of
section  17  of  the social services law, paragraph (vii) of subdivision
(g) as added by chapter 280 of the laws  of  2002,  subdivision  (h)  as
added  and  subdivision  (i)  as  relettered by section 1 of part K-3 of

A. 5277                             5

chapter 57 of the laws of 2007, and subdivision (i) as amended by  chap-
ter 110 of the laws of 1971, are amended to read as follows:
  (vii)  emphasize  the  need for the system to hold the abusing partner
responsible by appropriate referrals to law enforcement[.];
  (h) make available on its website all award  allocations  for  request
for  proposals issued by the office of children and family services upon
release of such awards. Such information shall also include  all  organ-
izations  requesting  funding and the amounts requested for each request
for proposal. The office  of  children  and  family  services  may  also
include  any  other  information  related  to each program that it deems
appropriate[.];
  (i) ENSURE THAT ALL RECIPIENTS OF  PUBLIC  ASSISTANCE  WHO  RESIDE  IN
SOBER  LIVING  HOMES,  AS  DEFINED  BY  ARTICLE TWENTY-ONE OF THE MENTAL
HYGIENE LAW, RESIDE IN HOUSING ACCOMMODATIONS  THAT  ARE  IN  COMPLIANCE
WITH  ALL  APPLICABLE  BUILDING CODES, ORDINANCES AND REGULATIONS OF THE
MUNICIPALITY IN WHICH THE HOUSING ACCOMMODATION IS  LOCATED.  REASONABLE
ACCOMMODATIONS  FROM BUILDING CODES, ORDINANCES AND REGULATIONS SHALL BE
MADE PURSUANT TO THE FEDERAL FAIR HOUSING ACT. UPON DISCOVERY THAT  SUCH
HOUSING ACCOMMODATION IS NOT IN COMPLIANCE RECIPIENTS SHALL BE HOUSED IN
EMERGENCY HOUSING OR OTHER ALTERNATIVE TEMPORARY HOUSING UNTIL SUCH TIME
AS THE INITIAL HOUSING ACCOMMODATIONS IN WHICH SUCH RECIPIENT OR RECIPI-
ENTS  RESIDED  IS  BROUGHT  INTO COMPLIANCE WITH ALL APPLICABLE BUILDING
CODES, ORDINANCES AND REGULATIONS OF SUFFOLK COUNTY AND THE MUNICIPALITY
IN WHICH SUCH HOUSING ACCOMMODATION  IS  LOCATED  OR  UNTIL  A  SUITABLE
PERMANENT  HOUSING  ACCOMMODATION  IS LOCATED, WHICHEVER OCCURS EARLIER;
AND
  (J) exercise such other powers and perform such other duties as may be
imposed by law.
  S 5.  Subdivision 2 of section 143-b of the social  services  law,  as
added by chapter 997 of the laws of 1962, is amended to read as follows:
  2.  Every public welfare official shall have power to and may withhold
the payment of any such rent, OR PORTION COMPRISING  RENT  IN  INSTANCES
WHERE  THE  DEPARTMENT  MAKES  ROOM AND BOARD PAYMENTS TO A SOBER LIVING
HOME AS DEFINED BY THE MENTAL HYGIENE LAW, in  any  case  where  he  has
knowledge that there exists or there is outstanding any violation of law
in  respect  to the building containing the housing accommodations occu-
pied by the person entitled  to  such  assistance  which  is  dangerous,
hazardous  or  detrimental  to  life  or  health.  A report of each such
violation shall be made to the appropriate public welfare department  by
the   appropriate   department   or   agency  having  jurisdiction  over
violations.
  S 6.  Severability. If any clause, sentence, paragraph or part of this
act shall be adjudged by any  court  of  competent  jurisdiction  to  be
invalid,  such  judgment  shall  not  affect,  impair  or invalidate the
remainder thereof, but shall be confined in its operation to the clause,
sentence, paragraph or part thereof directly involved in the controversy
in which such judgment shall have been rendered.
  S 7.  This act shall take effect one year after it shall have become a
law. Effective immediately, the addition, amendment and/or repeal of any
rule or regulation necessary for the implementation of this act  on  its
effective  date  is  authorized  to  be made on or before such effective
date.

assembly Bill A2375A

2015-2016 Legislative Session

Relates to authorizing small business tax-deferred savings accounts

download bill text pdf

Sponsored By

Current Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

Actions

view actions (6)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Feb 09, 2016 reported referred to ways and means
Jan 06, 2016 referred to small business
May 19, 2015 reported referred to ways and means
May 12, 2015 print number 2375a
amend and recommit to small business
Jan 16, 2015 referred to small business

Bill Amendments

A2375
A2375A
A2375
A2375A

Co-Sponsors

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A2375 - Bill Details

Current Committee:
Law Section:
Economic Development Law
Laws Affected:
Add §139, Ec Dev L; amd §§209 & 612, Tax L
Versions Introduced in 2013-2014 Legislative Session:
A8653

A2375 - Bill Texts

view summary

Relates to authorizing small business tax-deferred savings accounts.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2375

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 16, 2015
                               ___________

Introduced  by  M.  of A. LAVINE, McDONOUGH, SCHIMMINGER, SCHIMEL, OTIS,
  SCARBOROUGH, SIMANOWITZ, ZEBROWSKI, SALADINO, PERRY, RAIA, RA, GJONAJ,
  CAMARA, BENEDETTO, GUNTHER, CLARK, FAHY,  ROBINSON,  SKARTADOS,  GRAF,
  HOOPER  --  Multi-Sponsored  by  --  M.  of  A.  CERETTO, COOK, FINCH,
  GOODELL, HEVESI, LALOR, PALMESANO,  PEOPLES-STOKES,  RIVERA,  SOLAGES,
  THIELE -- read once and referred to the Committee on Small Business

AN  ACT  to  amend  the  economic  development  law  and the tax law, in
  relation to authorizing the creation of  small  business  tax-deferred
  savings accounts

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The economic development law is amended  by  adding  a  new
section 139 to read as follows:
  S  139.  SMALL  BUSINESS  TAX-DEFERRED  SAVINGS ACCOUNTS. 1. ANY SMALL
BUSINESS SHALL BE AUTHORIZED TO ESTABLISH AND  DEPOSIT  PROFITS  INTO  A
SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT.
  2.  THE  MONIES IN SUCH TAX-DEFERRED SAVINGS ACCOUNTS MAY BE WITHDRAWN
TAX FREE WHEN THEY ARE EXPENDED FOR EXPANSION OF SUCH BUSINESS  FOR  THE
PURPOSE OF CREATING OR PRESERVING FULL TIME JOBS.
  S 2. Section 209 of the tax law is amended by adding a new subdivision
13 to read as follows:
  13.  FOR  ANY  TAXABLE  YEAR  BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND FIFTEEN, ANY SMALL BUSINESS, AS SUCH TERM IS  DEFINED  PURSUANT
TO SECTION ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW, SHALL
BE  EXEMPT FROM ALL TAXES IMPOSED PURSUANT TO THIS ARTICLE FOR ANY WITH-
DRAWAL FROM A SMALL BUSINESS TAX-DEFERRED  SAVINGS  ACCOUNT  ESTABLISHED
PURSUANT  TO SECTION ONE HUNDRED THIRTY-NINE OF THE ECONOMIC DEVELOPMENT
LAW AND USED FOR THE EXPANSION OF SUCH SMALL BUSINESS FOR THE PURPOSE OF
CREATING OR PRESERVING FULL TIME JOBS.  IF  A  TAXPAYER  FILES  FOR  AND
RECEIVES  AN  EXEMPTION FROM THE TAX IMPOSED UNDER THIS SECTION PURSUANT
TO THE PROVISIONS OF THIS SUBDIVISION AND THE FUNDS  WITHDRAWN,  OR  ANY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07416-01-5

A. 2375                             2

PORTION  THEREOF, ARE NOT EXPENDED FOR A QUALIFYING PURPOSE AS SET FORTH
HEREIN, THEN THE AMOUNT OF SUCH EXEMPTION CLAIMED BY THE TAXPAYER  SHALL
BE  ADDED BACK TO TAX IN THE NEXT SUCCEEDING TAXABLE YEAR OR IN THE YEAR
IN WHICH THE EXEMPTION IS DISALLOWED.
  S 3. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 42 to read as follows:
  (42) ANY WITHDRAWAL FROM A SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT
ESTABLISHED  PURSUANT TO SECTION ONE HUNDRED THIRTY-NINE OF THE ECONOMIC
DEVELOPMENT LAW AND USED FOR THE EXPANSION OF SUCH  SMALL  BUSINESS  FOR
THE  PURPOSE  OF  CREATING  OR  PRESERVING FULL TIME JOBS. IF A TAXPAYER
FILES FOR AND RECEIVES AN EXEMPTION FROM  THE  TAX  IMPOSED  UNDER  THIS
SECTION PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH AND THE FUNDS WITH-
DRAWN, OR ANY PORTION THEREOF, ARE NOT EXPENDED FOR A QUALIFYING PURPOSE
AS  SET  FORTH  HEREIN, THEN THE AMOUNT OF SUCH EXEMPTION CLAIMED BY THE
TAXPAYER SHALL BE ADDED BACK TO TAX IN THE NEXT SUCCEEDING TAXABLE  YEAR
OR IN THE YEAR IN WHICH THE EXEMPTION IS DISALLOWED.
  S 4. This act shall take effect immediately.

Co-Sponsors

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A2375A - Bill Details

Current Committee:
Law Section:
Economic Development Law
Laws Affected:
Add §139, Ec Dev L; amd §§209 & 612, Tax L
Versions Introduced in 2013-2014 Legislative Session:
A8653

A2375A - Bill Texts

view summary

Relates to authorizing small business tax-deferred savings accounts.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2375--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 16, 2015
                               ___________

Introduced  by  M.  of A. LAVINE, McDONOUGH, SCHIMMINGER, SCHIMEL, OTIS,
  SIMANOWITZ, ZEBROWSKI, SALADINO, PERRY, RAIA, RA,  GJONAJ,  BENEDETTO,
  GUNTHER, CLARK, FAHY, ROBINSON, SKARTADOS, GRAF, HOOPER -- Multi-Spon-
  sored  by  --  M.  of A. CERETTO, COOK, FINCH, GOODELL, HEVESI, LALOR,
  PALMESANO, PEOPLES-STOKES, RIVERA, SOLAGES, THIELE --  read  once  and
  referred  to  the Committee on Small Business -- committee discharged,
  bill amended, ordered reprinted as amended  and  recommitted  to  said
  committee

AN  ACT  to  amend  the  economic  development  law  and the tax law, in
  relation to authorizing the creation of  small  business  tax-deferred
  savings accounts

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The economic development law is amended  by  adding  a  new
section 139 to read as follows:
  S  139.  SMALL  BUSINESS  TAX-DEFERRED SAVINGS ACCOUNTS.   1. A "SMALL
BUSINESS TAXPAYER" OR "SMALL BUSINESS" SHALL HAVE THE  SAME  MEANING  AS
DEFINED IN SECTION ONE HUNDRED THIRTY-ONE OF THIS ARTICLE AND SHALL MEET
THE  REQUIREMENTS  OF  PARAGRAPH  (F)  OF SUBDIVISION ONE OF SECTION TWO
HUNDRED TEN OF THE TAX LAW.
  2. ANY SMALL BUSINESS SHALL BE AUTHORIZED  TO  ESTABLISH  AND  DEPOSIT
PROFITS INTO A SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT.
  3.  THE  MONIES IN SUCH TAX-DEFERRED SAVINGS ACCOUNTS MAY BE DEPOSITED
OR WITHDRAWN TAX FREE WHEN THEY ARE EXPENDED FOR EXPANSION OF SUCH SMALL
BUSINESS FOR THE PURPOSE OF CREATING OR PRESERVING FULL TIME JOBS.
  4. FOR THE PURPOSES OF THIS ACT, A QUALIFYING  PURPOSE  SHALL  INCLUDE
SMALL  BUSINESS  TAXPAYER  EXPENDITURES  THAT  RESULT IN THE CREATION OR
RETENTION OF FULL-TIME JOBS. IN ADDITION, WORKING CAPITAL USED FOR OTHER
ACTIVITIES, DEEMED APPROPRIATE BY THE DEPARTMENT, WHICH WILL IMPROVE THE
COMPETITIVENESS AND PRODUCTIVITY OF A SMALL BUSINESS AND RESULTS IN  THE
CREATION OR RETENTION OF FULL-TIME JOBS SHALL BE CONSIDERED A QUALIFYING

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07416-04-5

A. 2375--A                          2

BUSINESS  EXPENDITURE.  QUALIFYING  SMALL BUSINESS TAXPAYER EXPENDITURES
FOR THE PURPOSE OF THIS SECTION SHALL INCLUDE, BUT NOT  BE  LIMITED  TO,
NEW CONSTRUCTION, RENOVATION OR LEASEHOLD IMPROVEMENTS, AND THE ACQUISI-
TION OF LAND, BUILDINGS, MACHINERY AND EQUIPMENT.
  5. THE MONIES ON DEPOSIT IN SUCH TAX-DEFERRED SAVINGS ACCOUNTS MAY NOT
EXCEED MORE THAN FIVE THOUSAND DOLLARS IN ANY TAXABLE YEAR.
  6.  ON OR BEFORE APRIL FIRST, AND ANNUALLY THEREAFTER, THE DEPARTMENT,
IN CONSULTATION WITH THE  DEPARTMENT  OF  TAXATION  AND  FINANCE,  SHALL
REPORT ON THE NUMBER OF SMALL BUSINESS TAXPAYERS UTILIZING THIS PROGRAM,
THE  AVERAGE  AGGREGATE  AMOUNT  ON  DEPOSIT,  THE  QUALIFYING  EXPENSES
CLAIMED, ANY QUALIFYING EXPENSES DEEMED INAPPROPRIATE AND ANY OTHER SUCH
DATA DEEMED NECESSARY AND APPROPRIATE BY THE DEPARTMENT.
  S 2. Section 209 of the tax law is amended by adding a new subdivision
13 to read as follows:
  13. FOR ANY TAXABLE YEAR BEGINNING ON  OR  AFTER  JANUARY  FIRST,  TWO
THOUSAND  SIXTEEN,  ANY SMALL BUSINESS, AS SUCH TERM IS DEFINED PURSUANT
TO SECTION ONE HUNDRED THIRTY-NINE  OF  THE  ECONOMIC  DEVELOPMENT  LAW,
SHALL  BE  EXEMPT  FROM  ALL STATE INCOME TAXES IMPOSED PURSUANT TO THIS
ARTICLE FOR ANY DEPOSIT OR WITHDRAWAL FROM A SMALL BUSINESS TAX-DEFERRED
SAVINGS ACCOUNT ESTABLISHED PURSUANT TO SECTION ONE HUNDRED  THIRTY-NINE
OF THE ECONOMIC DEVELOPMENT LAW AND USED FOR THE EXPANSION OF SUCH SMALL
BUSINESS  FOR THE PURPOSE OF CREATING OR PRESERVING FULL TIME JOBS. IF A
SMALL BUSINESS TAXPAYER FILES FOR AND RECEIVES  AN  EXEMPTION  FROM  THE
STATE  INCOME  TAX IMPOSED UNDER THIS SECTION PURSUANT TO THE PROVISIONS
OF THIS SUBDIVISION AND THE FUNDS DEPOSITED OR WITHDRAWN, OR ANY PORTION
THEREOF, ARE NOT EXPENDED FOR A  QUALIFYING  PURPOSE  AS  SET  FORTH  IN
SECTION  ONE  HUNDRED  THIRTY-NINE OF THE ECONOMIC DEVELOPMENT LAW, THEN
THE AMOUNT OF SUCH EXEMPTION CLAIMED  BY  THE  SMALL  BUSINESS  TAXPAYER
SHALL  BE  ADDED BACK TO THE AMOUNT OF STATE INCOME LIABILITY TAX IN THE
NEXT SUCCEEDING TAXABLE YEAR OR IN THE YEAR IN WHICH  THE  EXEMPTION  IS
DISALLOWED.
  S 3. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 42 to read as follows:
  (42)  ANY  DEPOSIT  OR  WITHDRAWAL  FROM A SMALL BUSINESS TAX-DEFERRED
SAVINGS ACCOUNT ESTABLISHED PURSUANT TO SECTION ONE HUNDRED  THIRTY-NINE
OF THE ECONOMIC DEVELOPMENT LAW AND USED FOR THE EXPANSION OF SUCH SMALL
BUSINESS  FOR THE PURPOSE OF CREATING OR PRESERVING FULL TIME JOBS. IF A
SMALL BUSINESS TAXPAYER FILES FOR AND RECEIVES  AN  EXEMPTION  FROM  THE
STATE  INCOME  TAX IMPOSED UNDER THIS SECTION PURSUANT TO THE PROVISIONS
OF THIS PARAGRAPH AND THE FUNDS DEPOSITED OR WITHDRAWN, OR  ANY  PORTION
THEREOF,  ARE  NOT  EXPENDED  FOR  A  QUALIFYING PURPOSE AS SET FORTH IN
SECTION ONE HUNDRED THIRTY-NINE OF THE ECONOMIC  DEVELOPMENT  LAW,  THEN
THE  AMOUNT  OF  SUCH  EXEMPTION  CLAIMED BY THE SMALL BUSINESS TAXPAYER
SHALL BE ADDED BACK TO STATE INCOME TAX IN THE NEXT  SUCCEEDING  TAXABLE
YEAR OR IN THE YEAR IN WHICH THE EXEMPTION IS DISALLOWED.
  S  4. The department of taxation and finance, in consultation with the
department of economic development, shall review and analyze all statis-
tical data available for such purposes of determining the  economic  and
revenue  impact associated with this act. Such data shall be included in
an annual report that shall also include, but not  be  limited  to,  the
number  of  small business taxpayers utilizing this program, the average
aggregate amount on deposit, the qualifying expenses claimed, any quali-
fying expenses deemed inappropriate  and  any  other  such  data  deemed
necessary and appropriate by the department. Such annual report shall be
posted on the websites of the department of taxation and finance and the
department of economic development, and transmitted to the governor, the

A. 2375--A                          3

temporary  president  of  the  senate,  the  senate minority leader, the
speaker of the assembly and the assembly minority leader.
  S  5. Rules and regulations. The department of taxation and finance in
consultation with the department  of  economic  development,  is  hereby
authorized  to  promulgate  rules and regulations in accordance with the
state administrative procedure act that are  necessary  to  fulfill  the
purposes  of this act. Such regulations shall include but not be limited
to deadlines for establishing a  small  business  tax  deferred  savings
account,  standard  procedures  and forms to be utilized in the program,
and any other such regulations deemed  necessary  to  promote  the  full
utilization  of  this  program.  Such  rules  and  regulations  shall be
completed within 180 days after the effective date of this chapter.
  S 6. This act shall take effect immediately.

assembly Bill A2375

2015-2016 Legislative Session

Relates to authorizing small business tax-deferred savings accounts

download bill text pdf

Sponsored By

Current Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

Actions

view actions (6)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Feb 09, 2016 reported referred to ways and means
Jan 06, 2016 referred to small business
May 19, 2015 reported referred to ways and means
May 12, 2015 print number 2375a
amend and recommit to small business
Jan 16, 2015 referred to small business

Bill Amendments

A2375
A2375A
A2375
A2375A

Co-Sponsors

view all co-sponsors

A2375 - Bill Details

Current Committee:
Law Section:
Economic Development Law
Laws Affected:
Add §139, Ec Dev L; amd §§209 & 612, Tax L
Versions Introduced in 2013-2014 Legislative Session:
A8653

A2375 - Bill Texts

view summary

Relates to authorizing small business tax-deferred savings accounts.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2375

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 16, 2015
                               ___________

Introduced  by  M.  of A. LAVINE, McDONOUGH, SCHIMMINGER, SCHIMEL, OTIS,
  SCARBOROUGH, SIMANOWITZ, ZEBROWSKI, SALADINO, PERRY, RAIA, RA, GJONAJ,
  CAMARA, BENEDETTO, GUNTHER, CLARK, FAHY,  ROBINSON,  SKARTADOS,  GRAF,
  HOOPER  --  Multi-Sponsored  by  --  M.  of  A.  CERETTO, COOK, FINCH,
  GOODELL, HEVESI, LALOR, PALMESANO,  PEOPLES-STOKES,  RIVERA,  SOLAGES,
  THIELE -- read once and referred to the Committee on Small Business

AN  ACT  to  amend  the  economic  development  law  and the tax law, in
  relation to authorizing the creation of  small  business  tax-deferred
  savings accounts

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The economic development law is amended  by  adding  a  new
section 139 to read as follows:
  S  139.  SMALL  BUSINESS  TAX-DEFERRED  SAVINGS ACCOUNTS. 1. ANY SMALL
BUSINESS SHALL BE AUTHORIZED TO ESTABLISH AND  DEPOSIT  PROFITS  INTO  A
SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT.
  2.  THE  MONIES IN SUCH TAX-DEFERRED SAVINGS ACCOUNTS MAY BE WITHDRAWN
TAX FREE WHEN THEY ARE EXPENDED FOR EXPANSION OF SUCH BUSINESS  FOR  THE
PURPOSE OF CREATING OR PRESERVING FULL TIME JOBS.
  S 2. Section 209 of the tax law is amended by adding a new subdivision
13 to read as follows:
  13.  FOR  ANY  TAXABLE  YEAR  BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND FIFTEEN, ANY SMALL BUSINESS, AS SUCH TERM IS  DEFINED  PURSUANT
TO SECTION ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW, SHALL
BE  EXEMPT FROM ALL TAXES IMPOSED PURSUANT TO THIS ARTICLE FOR ANY WITH-
DRAWAL FROM A SMALL BUSINESS TAX-DEFERRED  SAVINGS  ACCOUNT  ESTABLISHED
PURSUANT  TO SECTION ONE HUNDRED THIRTY-NINE OF THE ECONOMIC DEVELOPMENT
LAW AND USED FOR THE EXPANSION OF SUCH SMALL BUSINESS FOR THE PURPOSE OF
CREATING OR PRESERVING FULL TIME JOBS.  IF  A  TAXPAYER  FILES  FOR  AND
RECEIVES  AN  EXEMPTION FROM THE TAX IMPOSED UNDER THIS SECTION PURSUANT
TO THE PROVISIONS OF THIS SUBDIVISION AND THE FUNDS  WITHDRAWN,  OR  ANY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07416-01-5

A. 2375                             2

PORTION  THEREOF, ARE NOT EXPENDED FOR A QUALIFYING PURPOSE AS SET FORTH
HEREIN, THEN THE AMOUNT OF SUCH EXEMPTION CLAIMED BY THE TAXPAYER  SHALL
BE  ADDED BACK TO TAX IN THE NEXT SUCCEEDING TAXABLE YEAR OR IN THE YEAR
IN WHICH THE EXEMPTION IS DISALLOWED.
  S 3. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 42 to read as follows:
  (42) ANY WITHDRAWAL FROM A SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT
ESTABLISHED  PURSUANT TO SECTION ONE HUNDRED THIRTY-NINE OF THE ECONOMIC
DEVELOPMENT LAW AND USED FOR THE EXPANSION OF SUCH  SMALL  BUSINESS  FOR
THE  PURPOSE  OF  CREATING  OR  PRESERVING FULL TIME JOBS. IF A TAXPAYER
FILES FOR AND RECEIVES AN EXEMPTION FROM  THE  TAX  IMPOSED  UNDER  THIS
SECTION PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH AND THE FUNDS WITH-
DRAWN, OR ANY PORTION THEREOF, ARE NOT EXPENDED FOR A QUALIFYING PURPOSE
AS  SET  FORTH  HEREIN, THEN THE AMOUNT OF SUCH EXEMPTION CLAIMED BY THE
TAXPAYER SHALL BE ADDED BACK TO TAX IN THE NEXT SUCCEEDING TAXABLE  YEAR
OR IN THE YEAR IN WHICH THE EXEMPTION IS DISALLOWED.
  S 4. This act shall take effect immediately.

Co-Sponsors

view all co-sponsors

A2375A - Bill Details

Current Committee:
Law Section:
Economic Development Law
Laws Affected:
Add §139, Ec Dev L; amd §§209 & 612, Tax L
Versions Introduced in 2013-2014 Legislative Session:
A8653

A2375A - Bill Texts

view summary

Relates to authorizing small business tax-deferred savings accounts.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2375--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 16, 2015
                               ___________

Introduced  by  M.  of A. LAVINE, McDONOUGH, SCHIMMINGER, SCHIMEL, OTIS,
  SIMANOWITZ, ZEBROWSKI, SALADINO, PERRY, RAIA, RA,  GJONAJ,  BENEDETTO,
  GUNTHER, CLARK, FAHY, ROBINSON, SKARTADOS, GRAF, HOOPER -- Multi-Spon-
  sored  by  --  M.  of A. CERETTO, COOK, FINCH, GOODELL, HEVESI, LALOR,
  PALMESANO, PEOPLES-STOKES, RIVERA, SOLAGES, THIELE --  read  once  and
  referred  to  the Committee on Small Business -- committee discharged,
  bill amended, ordered reprinted as amended  and  recommitted  to  said
  committee

AN  ACT  to  amend  the  economic  development  law  and the tax law, in
  relation to authorizing the creation of  small  business  tax-deferred
  savings accounts

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The economic development law is amended  by  adding  a  new
section 139 to read as follows:
  S  139.  SMALL  BUSINESS  TAX-DEFERRED SAVINGS ACCOUNTS.   1. A "SMALL
BUSINESS TAXPAYER" OR "SMALL BUSINESS" SHALL HAVE THE  SAME  MEANING  AS
DEFINED IN SECTION ONE HUNDRED THIRTY-ONE OF THIS ARTICLE AND SHALL MEET
THE  REQUIREMENTS  OF  PARAGRAPH  (F)  OF SUBDIVISION ONE OF SECTION TWO
HUNDRED TEN OF THE TAX LAW.
  2. ANY SMALL BUSINESS SHALL BE AUTHORIZED  TO  ESTABLISH  AND  DEPOSIT
PROFITS INTO A SMALL BUSINESS TAX-DEFERRED SAVINGS ACCOUNT.
  3.  THE  MONIES IN SUCH TAX-DEFERRED SAVINGS ACCOUNTS MAY BE DEPOSITED
OR WITHDRAWN TAX FREE WHEN THEY ARE EXPENDED FOR EXPANSION OF SUCH SMALL
BUSINESS FOR THE PURPOSE OF CREATING OR PRESERVING FULL TIME JOBS.
  4. FOR THE PURPOSES OF THIS ACT, A QUALIFYING  PURPOSE  SHALL  INCLUDE
SMALL  BUSINESS  TAXPAYER  EXPENDITURES  THAT  RESULT IN THE CREATION OR
RETENTION OF FULL-TIME JOBS. IN ADDITION, WORKING CAPITAL USED FOR OTHER
ACTIVITIES, DEEMED APPROPRIATE BY THE DEPARTMENT, WHICH WILL IMPROVE THE
COMPETITIVENESS AND PRODUCTIVITY OF A SMALL BUSINESS AND RESULTS IN  THE
CREATION OR RETENTION OF FULL-TIME JOBS SHALL BE CONSIDERED A QUALIFYING

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07416-04-5

A. 2375--A                          2

BUSINESS  EXPENDITURE.  QUALIFYING  SMALL BUSINESS TAXPAYER EXPENDITURES
FOR THE PURPOSE OF THIS SECTION SHALL INCLUDE, BUT NOT  BE  LIMITED  TO,
NEW CONSTRUCTION, RENOVATION OR LEASEHOLD IMPROVEMENTS, AND THE ACQUISI-
TION OF LAND, BUILDINGS, MACHINERY AND EQUIPMENT.
  5. THE MONIES ON DEPOSIT IN SUCH TAX-DEFERRED SAVINGS ACCOUNTS MAY NOT
EXCEED MORE THAN FIVE THOUSAND DOLLARS IN ANY TAXABLE YEAR.
  6.  ON OR BEFORE APRIL FIRST, AND ANNUALLY THEREAFTER, THE DEPARTMENT,
IN CONSULTATION WITH THE  DEPARTMENT  OF  TAXATION  AND  FINANCE,  SHALL
REPORT ON THE NUMBER OF SMALL BUSINESS TAXPAYERS UTILIZING THIS PROGRAM,
THE  AVERAGE  AGGREGATE  AMOUNT  ON  DEPOSIT,  THE  QUALIFYING  EXPENSES
CLAIMED, ANY QUALIFYING EXPENSES DEEMED INAPPROPRIATE AND ANY OTHER SUCH
DATA DEEMED NECESSARY AND APPROPRIATE BY THE DEPARTMENT.
  S 2. Section 209 of the tax law is amended by adding a new subdivision
13 to read as follows:
  13. FOR ANY TAXABLE YEAR BEGINNING ON  OR  AFTER  JANUARY  FIRST,  TWO
THOUSAND  SIXTEEN,  ANY SMALL BUSINESS, AS SUCH TERM IS DEFINED PURSUANT
TO SECTION ONE HUNDRED THIRTY-NINE  OF  THE  ECONOMIC  DEVELOPMENT  LAW,
SHALL  BE  EXEMPT  FROM  ALL STATE INCOME TAXES IMPOSED PURSUANT TO THIS
ARTICLE FOR ANY DEPOSIT OR WITHDRAWAL FROM A SMALL BUSINESS TAX-DEFERRED
SAVINGS ACCOUNT ESTABLISHED PURSUANT TO SECTION ONE HUNDRED  THIRTY-NINE
OF THE ECONOMIC DEVELOPMENT LAW AND USED FOR THE EXPANSION OF SUCH SMALL
BUSINESS  FOR THE PURPOSE OF CREATING OR PRESERVING FULL TIME JOBS. IF A
SMALL BUSINESS TAXPAYER FILES FOR AND RECEIVES  AN  EXEMPTION  FROM  THE
STATE  INCOME  TAX IMPOSED UNDER THIS SECTION PURSUANT TO THE PROVISIONS
OF THIS SUBDIVISION AND THE FUNDS DEPOSITED OR WITHDRAWN, OR ANY PORTION
THEREOF, ARE NOT EXPENDED FOR A  QUALIFYING  PURPOSE  AS  SET  FORTH  IN
SECTION  ONE  HUNDRED  THIRTY-NINE OF THE ECONOMIC DEVELOPMENT LAW, THEN
THE AMOUNT OF SUCH EXEMPTION CLAIMED  BY  THE  SMALL  BUSINESS  TAXPAYER
SHALL  BE  ADDED BACK TO THE AMOUNT OF STATE INCOME LIABILITY TAX IN THE
NEXT SUCCEEDING TAXABLE YEAR OR IN THE YEAR IN WHICH  THE  EXEMPTION  IS
DISALLOWED.
  S 3. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 42 to read as follows:
  (42)  ANY  DEPOSIT  OR  WITHDRAWAL  FROM A SMALL BUSINESS TAX-DEFERRED
SAVINGS ACCOUNT ESTABLISHED PURSUANT TO SECTION ONE HUNDRED  THIRTY-NINE
OF THE ECONOMIC DEVELOPMENT LAW AND USED FOR THE EXPANSION OF SUCH SMALL
BUSINESS  FOR THE PURPOSE OF CREATING OR PRESERVING FULL TIME JOBS. IF A
SMALL BUSINESS TAXPAYER FILES FOR AND RECEIVES  AN  EXEMPTION  FROM  THE
STATE  INCOME  TAX IMPOSED UNDER THIS SECTION PURSUANT TO THE PROVISIONS
OF THIS PARAGRAPH AND THE FUNDS DEPOSITED OR WITHDRAWN, OR  ANY  PORTION
THEREOF,  ARE  NOT  EXPENDED  FOR  A  QUALIFYING PURPOSE AS SET FORTH IN
SECTION ONE HUNDRED THIRTY-NINE OF THE ECONOMIC  DEVELOPMENT  LAW,  THEN
THE  AMOUNT  OF  SUCH  EXEMPTION  CLAIMED BY THE SMALL BUSINESS TAXPAYER
SHALL BE ADDED BACK TO STATE INCOME TAX IN THE NEXT  SUCCEEDING  TAXABLE
YEAR OR IN THE YEAR IN WHICH THE EXEMPTION IS DISALLOWED.
  S  4. The department of taxation and finance, in consultation with the
department of economic development, shall review and analyze all statis-
tical data available for such purposes of determining the  economic  and
revenue  impact associated with this act. Such data shall be included in
an annual report that shall also include, but not  be  limited  to,  the
number  of  small business taxpayers utilizing this program, the average
aggregate amount on deposit, the qualifying expenses claimed, any quali-
fying expenses deemed inappropriate  and  any  other  such  data  deemed
necessary and appropriate by the department. Such annual report shall be
posted on the websites of the department of taxation and finance and the
department of economic development, and transmitted to the governor, the

A. 2375--A                          3

temporary  president  of  the  senate,  the  senate minority leader, the
speaker of the assembly and the assembly minority leader.
  S  5. Rules and regulations. The department of taxation and finance in
consultation with the department  of  economic  development,  is  hereby
authorized  to  promulgate  rules and regulations in accordance with the
state administrative procedure act that are  necessary  to  fulfill  the
purposes  of this act. Such regulations shall include but not be limited
to deadlines for establishing a  small  business  tax  deferred  savings
account,  standard  procedures  and forms to be utilized in the program,
and any other such regulations deemed  necessary  to  promote  the  full
utilization  of  this  program.  Such  rules  and  regulations  shall be
completed within 180 days after the effective date of this chapter.
  S 6. This act shall take effect immediately.

assembly Bill A7703

2015-2016 Legislative Session

Creates the "metropolitan transportation infrastructure financing authority act of 2015"

download bill text pdf

Sponsored By

Current Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

Actions

view actions (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 06, 2016 referred to corporations, authorities and commissions
May 22, 2015 referred to corporations, authorities and commissions

A7703 - Bill Details

Current Committee:
Law Section:
Public Authorities Law
Laws Affected:
Add Art 10-D Title 4 §§3975 - 3989, Pub Auth L; amd §601, Tax L

A7703 - Bill Texts

view summary

Creates the "metropolitan transportation infrastructure financing authority act of 2015".

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7703

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              May 22, 2015
                               ___________

Introduced  by M. of A. BRENNAN -- read once and referred to the Commit-
  tee on Corporations, Authorities and Commissions

AN ACT to amend the public authorities law and the tax law, in  relation
  to  enacting  the metropolitan transportation infrastructure financing
  authority act of 2015

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Article  10-D of the public authorities law is amended by
adding a new title 4 to read as follows:
                                 TITLE 4
                       METROPOLITAN TRANSPORTATION
                   INFRASTRUCTURE FINANCING AUTHORITY
SECTION 3975. SHORT TITLE.
        3976. DEFINITIONS.
        3977. METROPOLITAN   TRANSPORTATION   INFRASTRUCTURE   FINANCING
                AUTHORITY.
        3978. ADMINISTRATION OF THE AUTHORITY.
        3979. GENERAL POWERS OF THE AUTHORITY.
        3980. BONDS OF THE AUTHORITY.
        3981. MONEYS OF THE AUTHORITY.
        3982. USE OF BOND PROCEEDS.
        3983. AGREEMENT WITH STATE.
        3984. BONDS AS LEGAL INVESTMENTS.
        3985. EXEMPTION FROM TAXATION.
        3986. AUDITS.
        3987. REMEDIES OF BONDHOLDERS.
        3988. ASSISTANCE  BY  STATE  OFFICERS,  DEPARTMENTS,  BOARDS AND
                COMMISSIONS.
        3989. APPLICABILITY.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11324-01-5

A. 7703                             2

  S 3975. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
"METROPOLITAN TRANSPORTATION INFRASTRUCTURE FINANCING AUTHORITY  ACT  OF
2015".
  S  3976.  DEFINITIONS.  FOR  THE  PURPOSES  OF  THIS TITLE, UNLESS THE
CONTEXT OTHERWISE REQUIRES:
  1. "AUTHORITY" OR "METROPOLITAN TRANSPORTATION INFRASTRUCTURE  FINANC-
ING  AUTHORITY"  MEANS  THE  PUBLIC  BENEFIT CORPORATION CREATED BY THIS
TITLE.
  2. "BONDS" MEANS BONDS, NOTES AND  OTHER  EVIDENCES  OF  INDEBTEDNESS,
ISSUED BY THE AUTHORITY.
  3. "COMPTROLLER" MEANS THE COMPTROLLER OF THE STATE OF NEW YORK.
  4.  "MTA"  MEANS THE METROPOLITAN TRANSPORTATION AUTHORITY ESTABLISHED
PURSUANT TO TITLE ELEVEN OF ARTICLE FIVE OF THIS CHAPTER.
  5. "PROJECT CAPITAL COSTS" OR "COSTS" MEANS COSTS  PROVIDING  FOR  THE
CONSTRUCTION,  RECONSTRUCTION,  ACQUISITION  OR INSTALLATION OF PHYSICAL
PUBLIC BETTERMENTS OR IMPROVEMENTS; OR  THE  COSTS  OF  ANY  PRELIMINARY
STUDIES,  APPRAISALS,  SURVEYS,  MAPS, PLANS, ESTIMATES AND HEARINGS; OR
COSTS FOR THE PREPARATION OF DESIGNS, SPECIFICATIONS, TESTING AND  ENVI-
RONMENTAL  IMPACT  STATEMENTS;  OR  COSTS  OF ENGINEERING; OR INCIDENTAL
COSTS, INCLUDING, BUT NOT LIMITED TO, LEGAL FEES, PRINTING OR ENGRAVING,
PUBLICATION OF NOTICES, TAKING OF TITLE,  APPORTIONMENT  OF  COSTS,  AND
INTEREST  DURING  CONSTRUCTION;  OR  ANY  UNDERWRITING  OR  OTHER  COSTS
INCURRED IN CONNECTION WITH THE FINANCING THEREOF.
  6. "REVENUES" MEANS THE TAX REVENUES AND ALL AID, RENTS, FEES,  CHARG-
ES, PAYMENTS AND THE INCOME AND RECEIPTS PAID OR PAYABLE TO THE AUTHORI-
TY.
  7. "STATE" MEANS THE STATE OF NEW YORK.
  8.  "TAX  REVENUES"  MEANS  THE TAXES PAID OR PAYABLE TO THE AUTHORITY
PURSUANT TO SECTION THIRTY-NINE HUNDRED EIGHTY-ONE  OF  THIS  TITLE  AND
SUCH  OTHER  REVENUES  AS  THE  AUTHORITY MAY DERIVE DIRECTLY FROM TAXES
IMPOSED AND COLLECTED BY THE STATE.
  S 3977. METROPOLITAN TRANSPORTATION INFRASTRUCTURE FINANCING  AUTHORI-
TY.  1.  THERE IS HEREBY CREATED THE METROPOLITAN TRANSPORTATION INFRAS-
TRUCTURE FINANCING AUTHORITY. THE AUTHORITY SHALL BE A CORPORATE GOVERN-
MENTAL  AGENCY  CONSTITUTING  A  PUBLIC  BENEFIT  CORPORATION   AND   AN
INSTRUMENTALITY OF THE STATE.
  2.  IN ACCORDANCE WITH THE PROVISIONS OF THIS TITLE, THE AUTHORITY MAY
ONLY FINANCE COSTS, INCLUDING THE  REFUNDING  OF  BONDS  ISSUED  BY  THE
AUTHORITY TO FINANCE COSTS, AND FUND RESERVES TO SECURE SUCH BONDS.
  3.  THE  AUTHORITY  SHALL CONTINUE UNTIL ALL ITS LIABILITIES HAVE BEEN
MET OR OTHERWISE DISCHARGED. UPON THE TERMINATION OF  THE  EXISTENCE  OF
THE AUTHORITY, ALL OF ITS RIGHTS AND PROPERTY SHALL PASS TO AND BE VEST-
ED IN THE STATE.
  S  3978.  ADMINISTRATION  OF  THE AUTHORITY. 1. THE AUTHORITY SHALL BE
ADMINISTERED BY SEVEN DIRECTORS: FIVE VOTING MEMBERS CONSISTING  OF  THE
DIRECTOR  OF  THE BUDGET, TWO MEMBERS APPOINTED BY THE GOVERNOR, AND ONE
EACH BY THE SPEAKER OF THE ASSEMBLY AND THE TEMPORARY PRESIDENT  OF  THE
SENATE;  AND  TWO NON-VOTING MEMBERS, ONE EACH APPOINTED BY THE MINORITY
LEADERS OF THE ASSEMBLY AND THE SENATE.
  2. THE MEMBERS OF THE BOARD SHALL APPOINT  ONE  OF  THE  DIRECTORS  TO
SERVE  AS  CHAIRPERSON  OF  THE AUTHORITY. THE CHAIRPERSON SHALL PRESIDE
OVER ALL MEETINGS OF THE DIRECTORS AND SHALL HAVE SUCH OTHER  DUTIES  AS
MAY BE FIXED BY THE DIRECTORS.
  3.  NOTWITHSTANDING ANY INCONSISTENT PROVISION OF ANY GENERAL, SPECIAL
OR LOCAL LAW, ORDINANCE, RESOLUTION OR CHARTER, NO  OFFICER,  MEMBER  OR
EMPLOYEE  OF  THE  STATE, ANY CITY, COUNTY, TOWN OR VILLAGE, ANY GOVERN-

A. 7703                             3

MENTAL ENTITY  OPERATING  ANY  PUBLIC  SCHOOL  OR  COLLEGE,  ANY  SCHOOL
DISTRICT  OR  ANY OTHER PUBLIC AGENCY OR INSTRUMENTALITY WHICH EXERCISES
GOVERNMENTAL POWERS UNDER THE LAWS OF THE STATE, SHALL  FORFEIT  HIS  OR
HER  OFFICE OR EMPLOYMENT BY REASON OF HIS OR HER ACCEPTANCE OF APPOINT-
MENT AS A DIRECTOR OF THE AUTHORITY, NOR SHALL SERVICE AS SUCH  DIRECTOR
BE DEEMED INCOMPATIBLE OR IN CONFLICT WITH SUCH OFFICE OR EMPLOYMENT.
  4.  NOTWITHSTANDING  ANY  INCONSISTENT PROVISION OF THIS CHAPTER, FIVE
DIRECTORS SHALL CONSTITUTE A QUORUM FOR THE TRANSACTION OF ANY  BUSINESS
OR  THE EXERCISE OF ANY POWER OF THE AUTHORITY. NO ACTION SHALL BE TAKEN
BY THE AUTHORITY EXCEPT PURSUANT TO A FAVORABLE VOTE OF  AT  LEAST  FIVE
DIRECTORS PRESENT AT A MEETING AT WHICH SUCH ACTION IS TAKEN. ANY DIREC-
TOR  MAY,  BY  WRITTEN INSTRUMENT, FILED WITH AND APPROVED AS TO FORM BY
THE AUTHORITY, DESIGNATE AN ALTERNATE TO PERFORM, IN THE ABSENCE OF SUCH
DIRECTOR, HIS OR HER DUTIES UNDER THIS TITLE.  THE  TERM  "DIRECTOR"  AS
USED  IN THIS TITLE SHALL INCLUDE SUCH ALTERNATES, EXCEPT THAT NO ALTER-
NATE MAY DESIGNATE AN ALTERNATE PURSUANT TO THIS SUBDIVISION. THE DESIG-
NATION OF SUCH ALTERNATES SHALL BE DEEMED TEMPORARY ONLY AND  SHALL  NOT
AFFECT  THE  CIVIL SERVICE OR RETIREMENT RIGHTS OF ANY PERSONS SO DESIG-
NATED.
  5. THE AUTHORITY SHALL APPOINT A TREASURER AND MAY APPOINT  OR  EMPLOY
OFFICERS,  EMPLOYEES  OR  AGENTS  AS  IT MAY REQUIRE AND PRESCRIBE THEIR
DUTIES.
  6. THE DIRECTORS SHALL NOT BE PAID A SALARY, BUT SHALL  BE  REIMBURSED
OR  PAID FOR ALL ACTUAL AND NECESSARY EXPENSES INCURRED IN THE DISCHARGE
OF THEIR DUTIES.
  S 3979. GENERAL POWERS OF THE AUTHORITY. EXCEPT AS  OTHERWISE  LIMITED
BY THIS TITLE, THE AUTHORITY SHALL HAVE THE FOLLOWING POWERS IN ADDITION
TO  THOSE  SPECIALLY  CONFERRED ELSEWHERE IN THIS TITLE, SUBJECT ONLY TO
AGREEMENTS WITH BONDHOLDERS:
  1. TO SUE AND BE SUED;
  2. TO HAVE A SEAL AND ALTER THE SAME AT PLEASURE;
  3. TO MAKE AND ALTER BY-LAWS FOR ITS ORGANIZATION AND MANAGEMENT  AND,
SUBJECT  TO AGREEMENTS WITH ITS BONDHOLDERS, TO MAKE AND ALTER RULES AND
REGULATIONS GOVERNING THE EXERCISE OF ITS POWERS AND FULFILLMENT OF  ITS
PURPOSES UNDER THIS TITLE;
  4.  TO  MAKE AND EXECUTE CONTRACTS AND ALL OTHER INSTRUMENTS OR AGREE-
MENTS NECESSARY OR CONVENIENT TO CARRY  OUT  ANY  POWERS  AND  FUNCTIONS
EXPRESSLY GIVEN IN THIS TITLE;
  5.  TO  COMMENCE  ANY ACTION TO PROTECT OR ENFORCE ANY RIGHT CONFERRED
UPON IT BY ANY LAW, CONTRACT OR OTHER AGREEMENT;
  6. TO BORROW MONEY AND ISSUE BONDS, OR TO  REFUND  THE  SAME,  AND  TO
PROVIDE FOR THE RIGHTS OF THE HOLDERS OF ITS OBLIGATIONS;
  7.  TO ACCEPT GIFTS, GRANTS, LOANS OR CONTRIBUTIONS OF FUNDS OR FINAN-
CIAL OR OTHER AID IN ANY FORM FROM THE CITY, STATE OR FEDERAL GOVERNMENT
OR ANY AGENCY OR INSTRUMENTALITY THEREOF, OR FROM ANY OTHER  SOURCE  AND
FOR  ANY  OF ITS CORPORATE PURPOSES IN ACCORDANCE WITH THE PROVISIONS OF
THIS TITLE;
  8. TO INVEST ANY FUNDS HELD IN RESERVES OR SINKING FUNDS, OR ANY FUNDS
NOT REQUIRED FOR IMMEDIATE USE OR DISBURSEMENT, AT THE DISCRETION OF THE
AUTHORITY;
  9. TO PLEDGE ALL OR ANY PART OF  ITS  REVENUES  AS  SECURITY  FOR  THE
PAYMENT  OF THE PRINCIPAL OF AND INTEREST ON ANY BONDS SO ISSUED AND ANY
AGREEMENTS MADE IN CONNECTION THEREWITH;
  10. TO APPOINT SUCH OFFICERS AND EMPLOYEES AS IT MAY REQUIRE  FOR  THE
PERFORMANCE OF ITS DUTIES AND TO FIX AND DETERMINE THEIR QUALIFICATIONS,
DUTIES,  AND COMPENSATION; AND TO RETAIN OR EMPLOY COUNSEL, AUDITORS AND

A. 7703                             4

PRIVATE FINANCIAL CONSULTANTS ON  A  CONTRACT  BASIS  OR  OTHERWISE  FOR
RENDERING PROFESSIONAL OR TECHNICAL SERVICES AND ADVICE; AND
  11.  TO DO ANY AND ALL THINGS NECESSARY OR CONVENIENT TO CARRY OUT ITS
PURPOSES AND EXERCISE THE POWERS EXPRESSLY GIVEN  AND  GRANTED  IN  THIS
TITLE  PROVIDED,  HOWEVER,  SUCH  AUTHORITY SHALL UNDER NO CIRCUMSTANCES
ACQUIRE, HOLD OR TRANSFER TITLE TO, LEASE, OWN  BENEFICIALLY  OR  OTHER-
WISE,  MANAGE, OPERATE OR OTHERWISE EXERCISE CONTROL OVER ANY REAL PROP-
ERTY, ANY IMPROVEMENT TO REAL PROPERTY OR  ANY  INTEREST  THEREIN  OTHER
THAN  A  LEASE  OF  OFFICE  SPACE  DEEMED  NECESSARY OR DESIRABLE BY THE
AUTHORITY.
  S 3980. BONDS OF THE AUTHORITY. 1. THE AUTHORITY SHALL HAVE THE  POWER
AND IS HEREBY AUTHORIZED FROM TIME TO TIME TO ISSUE BONDS, IN CONFORMITY
WITH APPLICABLE PROVISIONS OF THE UNIFORM COMMERCIAL CODE, IN SUCH PRIN-
CIPAL  AMOUNTS  AS  IT  MAY DETERMINE TO BE NECESSARY, NOT TO EXCEED THE
PRINCIPAL AGGREGATE AMOUNT OF EIGHT  BILLION  DOLLARS.    THE  AUTHORITY
SHALL  HAVE  THE  POWER  FROM  TIME  TO  TIME TO REFUND ANY BONDS OF THE
AUTHORITY BY THE ISSUANCE OF NEW BONDS WHETHER THE BONDS TO BE  REFUNDED
HAVE  OR HAVE NOT MATURED, AND MAY ISSUE BONDS PARTLY TO REFUND BONDS OF
THE AUTHORITY THEN OUTSTANDING. BONDS ISSUED BY THE AUTHORITY  SHALL  BE
PAYABLE  SOLELY  OUT  OF  THE  SPECIFIC  REVENUES OR OTHER MONEYS OF THE
AUTHORITY AS MAY BE DESIGNATED IN THE PROCEEDINGS OF THE AUTHORITY UNDER
WHICH THE BONDS SHALL BE AUTHORIZED TO BE ISSUED,  AND  SUBJECT  TO  ANY
AGREEMENTS WITH THE HOLDERS OF OUTSTANDING BONDS PLEDGING ANY PARTICULAR
REVENUES OR MONEYS.
  2.  SUCH  BONDS  SHALL  BE  AUTHORIZED BY RESOLUTION OF THE AUTHORITY,
SHALL BEAR SUCH DATE AND SHALL MATURE AT SUCH  TIME  OR  TIMES  AS  SUCH
RESOLUTION  MAY PROVIDE.   THE BONDS MAY BE ISSUED AS SERIAL BONDS OR AS
TERM BONDS OR AS A COMBINATION THEREOF.  THE BONDS SHALL  BEAR  INTEREST
AT SUCH RATE OR RATES, BE IN SUCH DENOMINATIONS AND IN SUCH FORM, EITHER
COUPON OR REGISTERED, CARRY SUCH REGISTRATION PRIVILEGES, BE EXECUTED IN
SUCH  MANNER,  BE  PAYABLE  IN  SUCH MEDIUM OF PAYMENT, AT SUCH PLACE OR
PLACES AND BE SUBJECT TO SUCH TERMS OF REDEMPTION AS SUCH RESOLUTION MAY
PROVIDE.
  3. ANY RESOLUTION OR RESOLUTIONS AUTHORIZING BONDS  OR  ANY  ISSUE  OF
BONDS  MAY  CONTAIN  PROVISIONS WHICH MAY BE A PART OF THE CONTRACT WITH
THE HOLDERS OF THE BONDS THEREBY AUTHORIZED AS TO:
  (A) PLEDGING ALL OR PART OF ITS  REVENUES,  TOGETHER  WITH  ANY  OTHER
MONEYS,  SECURITIES  OR  CONTRACTS,  TO SECURE THE PAYMENT OF THE BONDS,
SUBJECT TO SUCH AGREEMENTS WITH BONDHOLDERS AS MAY THEN EXIST;
  (B) THE SETTING ASIDE OF RESERVES AND THE CREATION  OF  SINKING  FUNDS
AND THE REGULATION AND DISPOSITION THEREOF;
  (C)  LIMITATIONS ON THE PURPOSE TO WHICH THE PROCEEDS FROM THE SALE OF
BONDS MAY BE APPLIED;
  (D) LIMITATIONS ON THE ISSUANCE OF ADDITIONAL BONDS,  THE  TERMS  UPON
WHICH  ADDITIONAL  BONDS  MAY BE ISSUED AND SECURED AND THE REFUNDING OF
BONDS;
  (E) THE PROCEDURE, IF ANY, BY WHICH THE TERMS  OF  ANY  CONTRACT  WITH
BONDHOLDERS  MAY  BE  AMENDED  OR ABROGATED, INCLUDING THE PROPORTION OF
BONDHOLDERS WHICH MUST CONSENT THERETO AND  THE  MANNER  IN  WHICH  SUCH
CONSENT MAY BE GIVEN; AND
  (F)  DEFINING  THE  ACTS  OR  OMISSIONS  TO ACT WHICH MAY CONSTITUTE A
DEFAULT IN THE OBLIGATIONS AND DUTIES OF THE AUTHORITY TO THE  BONDHOLD-
ERS  AND PROVIDING FOR THE RIGHTS AND REMEDIES OF THE BONDHOLDERS IN THE
EVENT OF SUCH DEFAULT, INCLUDING AS A MATTER OF RIGHT THE APPOINTMENT OF
A RECEIVER; PROVIDED, HOWEVER, THAT SUCH RIGHTS AND REMEDIES  SHALL  NOT

A. 7703                             5

BE  INCONSISTENT WITH THE GENERAL LAWS OF THE STATE AND OTHER PROVISIONS
OF THIS TITLE.
  4.  IN  ADDITION  TO THE POWERS HEREIN CONFERRED UPON THE AUTHORITY TO
SECURE ITS BONDS, THE AUTHORITY SHALL HAVE POWER IN CONNECTION WITH  THE
ISSUANCE  OF  BONDS TO ENTER INTO SUCH AGREEMENTS FOR THE BENEFIT OF THE
BONDHOLDERS AS THE AUTHORITY MAY DEEM NECESSARY, CONVENIENT OR DESIRABLE
CONCERNING THE USE OR DISPOSITION  OF  ITS  REVENUES  OR  OTHER  MONEYS,
INCLUDING  THE  ENTRUSTING,  PLEDGING  OR CREATION OF ANY OTHER SECURITY
INTEREST IN ANY SUCH REVENUES, MONEYS AND THE DOING OF ANY ACT,  INCLUD-
ING  REFRAINING  FROM  DOING ANY ACT, WHICH THE AUTHORITY WOULD HAVE THE
RIGHT TO DO IN THE ABSENCE OF SUCH AGREEMENTS. THE AUTHORITY SHALL  HAVE
POWER  TO ENTER INTO AMENDMENTS OF ANY SUCH AGREEMENTS WITHIN THE POWERS
GRANTED TO THE AUTHORITY BY THIS TITLE AND TO PERFORM  SUCH  AGREEMENTS.
THE PROVISIONS OF ANY SUCH AGREEMENTS MAY BE MADE A PART OF THE CONTRACT
WITH THE HOLDERS OF BONDS OF THE AUTHORITY.
  5.  THE  AUTHORITY SHALL HAVE POWER TO CONTRACT WITH HOLDERS OF ANY OF
ITS BONDS AS TO  THE  CUSTODY,  COLLECTION,  SECURING,  INVESTMENT,  AND
PAYMENT  OF  ANY MONEYS OF THE AUTHORITY, OF ANY MONEYS HELD IN TRUST OR
OTHERWISE FOR THE PAYMENT OF BONDS, AND  TO  CARRY  OUT  SUCH  CONTRACT.
MONEYS HELD IN TRUST OR OTHERWISE FOR THE PAYMENT OF BONDS OR IN ANY WAY
TO  SECURE  BONDS OR NOTES AND DEPOSITS OF SUCH MONEYS MAY BE SECURED IN
THE SAME MANNER AS MONEYS OF THE AUTHORITY,  AND  ALL  BANKS  AND  TRUST
COMPANIES ARE AUTHORIZED TO GIVE SUCH SECURITY FOR SUCH DEPOSITS.
  6.  WHETHER  OR  NOT  THE  BONDS OF THE AUTHORITY ARE OF SUCH FORM AND
CHARACTER AS TO BE NEGOTIABLE INSTRUMENTS UNDER THE TERMS OF THE UNIFORM
COMMERCIAL CODE, THE BONDS ARE HEREBY MADE NEGOTIABLE INSTRUMENTS WITHIN
THE MEANING OF AND FOR ALL THE PURPOSES OF THE UNIFORM COMMERCIAL  CODE,
SUBJECT ONLY TO THE PROVISIONS OF THE BONDS FOR REGISTRATION.
  7.  NEITHER  THE  DIRECTORS  OF THE AUTHORITY NOR ANY PERSON EXECUTING
BONDS SHALL BE LIABLE PERSONALLY THEREON OR BE SUBJECT TO  ANY  PERSONAL
LIABILITY  OR  ACCOUNTABILITY  SOLELY BY REASON OF THE ISSUANCE THEREOF.
THE BONDS OR OTHER OBLIGATIONS OF THE AUTHORITY SHALL NOT BE A  DEBT  OF
THE  STATE, AND THE STATE SHALL NOT BE LIABLE THEREON, NOR SHALL THEY BE
PAYABLE OUT OF ANY FUNDS OTHER THAN THOSE OF  THE  AUTHORITY;  AND  SUCH
BONDS SHALL CONTAIN ON THE FACE THEREOF A STATEMENT TO SUCH EFFECT.
  8.  THE AUTHORITY, SUBJECT TO SUCH AGREEMENTS WITH BONDHOLDERS AS THEN
MAY EXIST, SHALL HAVE POWER TO PURCHASE BONDS OF THE  AUTHORITY  OUT  OF
ANY MONEYS AVAILABLE THEREFOR, WHICH SHALL THEREUPON BE CANCELLED.
  S  3981. MONEYS OF THE AUTHORITY. 1. SUBJECT TO THE PROVISIONS OF THIS
TITLE, THE DIRECTORS OF THE AUTHORITY  SHALL  RECEIVE,  ACCEPT,  INVEST,
ADMINISTER,  EXPEND AND DISBURSE FOR ITS CORPORATE PURPOSES ALL MONEY OF
THE AUTHORITY FROM WHATEVER SOURCES DERIVED INCLUDING  (A)  PAYMENTS  BY
THE  COMMISSIONER OF TAXATION AND FINANCE OR THE COMPTROLLER PURSUANT TO
THIS TITLE; (B) THE PROCEEDS OF BONDS; (C)  THE  REVENUES  DESCRIBED  IN
SUBDIVISION  SIX  OF THIS SECTION; AND (D) ANY OTHER PAYMENTS, GIFTS, OR
APPROPRIATIONS TO THE AUTHORITY FROM ANY OTHER SOURCE.
  2. SUBJECT TO THE PROVISIONS OF ANY CONTRACT WITH BONDHOLDERS,
  (A) THE MONEY OF THE AUTHORITY SHALL BE  PAID  TO  THE  AUTHORITY  AND
SHALL NOT BE COMMINGLED WITH ANY OTHER MONEY, AND
  (B)  ALL  MONEY  RECEIVED  BY THE AUTHORITY WHICH, TOGETHER WITH OTHER
MONEY OF THE AUTHORITY AVAILABLE  FOR  THE  OPERATING  EXPENSES  OF  THE
AUTHORITY,  THE  PAYMENT  OF DEBT SERVICE AND PAYMENTS TO RESERVE FUNDS,
EXCEEDS THE AMOUNT REQUIRED FOR SUCH PURPOSES SHALL  BE  TRANSFERRED  TO
THE STATE.
  3.  THE  MONEY IN ANY OF THE AUTHORITY'S ACCOUNTS SHALL BE PAID OUT ON
CHECKS SIGNED BY THE TREASURER, OR BY OTHER LAWFUL AND APPROPRIATE MEANS

A. 7703                             6

SUCH AS WIRE OR ELECTRONIC TRANSFER, ON REQUISITIONS OF THE  CHAIRPERSON
OF THE AUTHORITY OR OF SUCH OTHER OFFICER AS THE DIRECTORS SHALL AUTHOR-
IZE  TO MAKE SUCH REQUISITION, OR PURSUANT TO A BOND RESOLUTION OR TRUST
INDENTURE.
  4.  ALL  MONEYS  OF  THE AUTHORITY FROM WHATEVER SOURCE DERIVED MAY BE
PAID TO THE TREASURER OF THE AUTHORITY AND BE DEPOSITED FORTHWITH  IN  A
BANK  OR  BANKS IN THE STATE DESIGNATED BY SUCH AUTHORITY. THE MONEYS IN
SUCH ACCOUNT MAY BE PAID BY THE TREASURER OR OTHER AGENT DULY DESIGNATED
BY THE AUTHORITY ON REQUISITION OF THE CHAIRMAN OF THE BOARD  OF  DIREC-
TORS  OF  THE  AUTHORITY  OR  OF SUCH PERSON OR PERSONS AS THE BOARD MAY
AUTHORIZE TO MAKE SUCH REQUISITIONS.   ALL DEPOSITS OF  AUTHORITY  MONEY
SHALL  BE SECURED BY OBLIGATIONS OF THE UNITED STATES OR OF THE STATE AT
A MARKET VALUE EQUAL AT ALL TIMES TO THE AMOUNT OF THE DEPOSIT, AND  ALL
BANKS  AND TRUST COMPANIES ARE AUTHORIZED TO GIVE SUCH SECURITY FOR SUCH
DEPOSITS.
  5. THE AUTHORITY SHALL HAVE THE POWER, NOTWITHSTANDING THE  PROVISIONS
OF  THIS SECTION, TO CONTRACT WITH THE HOLDERS OF ANY OF ITS BONDS AS TO
THE CUSTODY, COLLECTION, SECURING, INVESTMENT AND PAYMENT OF  ANY  MONEY
OF THE AUTHORITY OR ANY MONEY HELD IN TRUST OR OTHERWISE FOR THE PAYMENT
OF  BONDS  OR  IN  ANY  WAY  TO  SECURE BONDS, AND TO CARRY OUT ANY SUCH
CONTRACT NOTWITHSTANDING THAT SUCH CONTRACT MAY BE INCONSISTENT WITH THE
OTHER PROVISIONS OF THIS TITLE. MONEY HELD IN TRUST OR OTHERWISE FOR THE
PAYMENT OF BONDS OR IN ANY WAY TO SECURE  BONDS  AND  DEPOSITS  OF  SUCH
MONEY  MAY  BE SECURED IN THE SAME MANNER AS MONEY OF THE AUTHORITY, AND
ALL BANKS AND TRUST COMPANIES ARE AUTHORIZED TO GIVE SUCH  SECURITY  FOR
SUCH DEPOSITS.
  6. (A) REVENUES OF THE AUTHORITY SHALL INCLUDE, BUT NOT BE LIMITED TO:
  (I)  REVENUES  FROM  THE  ADDITIONAL  .25 PERCENT RATE OF THE PERSONAL
INCOME TAX FOR TAXPAYERS RESIDING IN THE METROPOLITAN COMMUTER TRANSPOR-
TATION DISTRICT CREATED  AND  ESTABLISHED  PURSUANT  TO  SECTION  TWELVE
HUNDRED  SIXTY-TWO  OF  THIS  CHAPTER WITH A TAXABLE INCOME GREATER THAN
FIVE HUNDRED THOUSAND DOLLARS BUT  LESS  THAN  TWO  MILLION  DOLLARS  AS
PROVIDED BY SUBPARAGRAPH (C) OF PARAGRAPH ONE OF SUBSECTION (A), SUBPAR-
AGRAPH  (C)  OF  PARAGRAPH ONE OF SUBSECTION (B) AND SUBPARAGRAPH (C) OF
PARAGRAPH ONE OF SUBSECTION (C) OF SECTION SIX HUNDRED ONE  OF  THE  TAX
LAW; AND
  (II) ANNUAL FUNDING FROM THE CITY OF NEW YORK AS FOLLOWS:
  (A) FOR THE FIRST FISCAL YEAR OF THE CITY OF NEW YORK COMMENCING AFTER
THE EFFECTIVE DATE OF THIS TITLE, THE AMOUNT THAT SUCH CITY APPROPRIATED
FOR THE SUPPORT OF THE MTA IN THE BASE YEAR PLUS SIXTY MILLION DOLLARS;
  (B)  FOR  THE  SECOND  FISCAL  YEAR OF THE CITY OF NEW YORK COMMENCING
AFTER THE EFFECTIVE DATE OF THIS TITLE, THE AMOUNT THAT SUCH CITY APPRO-
PRIATED FOR THE SUPPORT OF THE MTA IN THE BASE YEAR PLUS ONE HUNDRED AND
TWENTY MILLION DOLLARS;
  (C) FOR THE THIRD FISCAL YEAR OF THE CITY OF NEW YORK COMMENCING AFTER
THE EFFECTIVE DATE OF THIS TITLE, THE AMOUNT THAT SUCH CITY APPROPRIATED
FOR THE SUPPORT OF THE MTA IN THE BASE YEAR PLUS ONE HUNDRED AND  EIGHTY
MILLION DOLLARS;
  (D)  FOR  THE  FOURTH  FISCAL  YEAR OF THE CITY OF NEW YORK COMMENCING
AFTER THE EFFECTIVE DATE OF THIS TITLE, THE AMOUNT THAT SUCH CITY APPRO-
PRIATED FOR THE SUPPORT OF THE MTA IN THE BASE YEAR PLUS TWO HUNDRED AND
FORTY MILLION DOLLARS; AND
  (E) FOR THE FIFTH FISCAL YEAR OF THE CITY OF NEW YORK COMMENCING AFTER
THE EFFECTIVE DATE OF THIS TITLE, AND FOR EACH FISCAL YEAR OF SUCH  CITY
THEREAFTER,  THE  AMOUNT  THAT SUCH CITY APPROPRIATED FOR THE SUPPORT OF
THE MTA IN THE BASE YEAR PLUS THREE HUNDRED MILLION DOLLARS.

A. 7703                             7

  (B) FOR THE PURPOSES OF SUBPARAGRAPH (II) OF  PARAGRAPH  (A)  OF  THIS
SUBDIVISION, THE TERM "BASE YEAR" SHALL MEAN THE FISCAL YEAR OF THE CITY
OF NEW YORK ENDING JUNE 30, 2014.
  7.  REVENUES  RECEIVED BY THE AUTHORITY PURSUANT TO THIS SECTION SHALL
BE APPLIED IN THE FOLLOWING ORDER OF PRIORITY:  FIRST  PURSUANT  TO  THE
AUTHORITY'S  CONTRACTS  WITH  BONDHOLDERS,  THEN  TO PAY THE AUTHORITY'S
OPERATING EXPENSES NOT OTHERWISE PROVIDED FOR.
  S 3982. USE OF BOND PROCEEDS. THE MONEYS OR PROCEEDS RECEIVED  BY  THE
AUTHORITY FROM THE SALE OF BONDS SHALL BE PAID TO THE MTA TO BE EXPENDED
FOR  ANY PROJECT CAPITAL COSTS OR ELEMENTS DESCRIBED IN THE TWO THOUSAND
FIFTEEN THROUGH TWO THOUSAND NINETEEN CAPITAL PROGRAM PLANS AS SUBMITTED
TO AND APPROVED BY THE MTA CAPITAL  PROGRAM  REVIEW  BOARD  PURSUANT  TO
TITLE ELEVEN OF ARTICLE FIVE OF THIS CHAPTER.
  S  3983.  AGREEMENT  WITH  STATE.  THE STATE DOES HEREBY PLEDGE TO AND
AGREE WITH THE HOLDERS OF ANY BONDS ISSUED BY THE AUTHORITY  UNDER  THIS
ACT  THAT  THE STATE WILL NOT LIMIT OR ALTER THE RIGHTS HEREBY VESTED IN
SUCH AUTHORITY TO FULFILL THE TERMS OF ANY AGREEMENTS MADE WITH THE SAID
HOLDERS THEREOF, OR IN ANY WAY IMPAIR THE RIGHTS AND  REMEDIES  OF  SUCH
HOLDERS UNTIL SUCH BONDS TOGETHER WITH THE INTEREST THEREON, WITH INTER-
EST  ON  ANY UNPAID INSTALLMENTS OF INTEREST, AND ALL COSTS AND EXPENSES
IN CONNECTION WITH ANY ACTION OR PROCEEDING BY  OR  ON  BEHALF  OF  SUCH
HOLDERS,  ARE  FULLY PAID AND DISCHARGED. THE AUTHORITY IS AUTHORIZED TO
INCLUDE THIS PLEDGE AND AGREEMENT OF THE STATE IN ANY AGREEMENT WITH THE
HOLDERS OF SUCH BONDS.
  S 3984. BONDS AS LEGAL INVESTMENTS. THE BONDS  OF  THE  AUTHORITY  ARE
HEREBY  MADE  SECURITIES IN WHICH ALL PUBLIC OFFICERS AND BODIES OF THIS
STATE AND ALL POLITICAL SUBDIVISIONS OF  THE  STATE  AND  OTHER  PERSONS
CARRYING  ON AN INSURANCE BUSINESS, ALL BANKS, BANKERS, TRUST COMPANIES,
SAVINGS BANKS AND SAVINGS ASSOCIATIONS, INCLUDING SAVINGS AND LOAN ASSO-
CIATIONS, BUILDING AND LOAN ASSOCIATIONS, INVESTMENT COMPANIES AND OTHER
PERSONS CARRYING ON A BANKING BUSINESS, ALL  ADMINISTRATORS,  GUARDIANS,
EXECUTORS, TRUSTEES AND OTHER FIDUCIARIES, AND ALL OTHER PERSONS WHATSO-
EVER WHO ARE NOW OR MAY HEREAFTER BE AUTHORIZED TO INVEST IN BONDS OR IN
OTHER  OBLIGATIONS  OF THE STATE, MAY PROPERLY AND LEGALLY INVEST FUNDS,
INCLUDING CAPITAL, IN THEIR CONTROL OR BELONGING TO THEM. SUCH BONDS ARE
ALSO HEREBY MADE SECURITIES WHICH MAY  BE  DEPOSITED  WITH  AND  MAY  BE
RECEIVED  BY  ALL  PUBLIC OFFICERS AND BODIES OF THE STATE AND ALL POLI-
TICAL SUBDIVISIONS OF THE STATE AND PUBLIC CORPORATIONS FOR ANY  PURPOSE
FOR  WHICH THE DEPOSIT OF BONDS OR OTHER OBLIGATIONS OF THE STATE IS NOW
OR MAY HEREAFTER BE AUTHORIZED.
  S 3985. EXEMPTION FROM TAXATION. 1. IT IS HEREBY DETERMINED  THAT  THE
CREATION  OF THE AUTHORITY AND THE CARRYING OUT OF ITS CORPORATE PURPOSE
IS IN ALL RESPECTS A PUBLIC AND GOVERNMENTAL PURPOSE FOR THE BENEFIT  OF
THE PEOPLE OF THE STATE AND FOR THE IMPROVEMENT OF THEIR HEALTH, SAFETY,
WELFARE,  COMFORT  AND  SECURITY,  AND  THAT  SAID  PURPOSES  ARE PUBLIC
PURPOSES AND THAT A CORPORATION WILL BE PERFORMING AN ESSENTIAL  GOVERN-
MENTAL  FUNCTION IN THE EXERCISE OF THE POWERS CONFERRED UPON IT BY THIS
ACT.
  2. THE PROPERTY OF THE AUTHORITY AND ITS INCOME AND  OPERATIONS  SHALL
BE EXEMPT FROM TAXATION.
  3.  THE  BONDS  OF  THE  AUTHORITY ISSUED PURSUANT TO THIS ACT AND THE
INCOME THEREFROM AND ALL ITS FEES,  CHARGES,  GIFTS,  GRANTS,  REVENUES,
RECEIPTS AND OTHER MONEYS RECEIVED OR TO BE RECEIVED, PLEDGED TO PAY, OR
SECURE  THE  PAYMENT  OF, SUCH NOTES OR BONDS SHALL AT ALL TIMES BE FREE
FROM TAXATION, EXCEPT FOR ESTATE AND GIFT TAXES AND TAXES ON TRANSFERS.

A. 7703                             8

  S 3986. AUDITS. 1. THE ACCOUNTS OF THE AUTHORITY SHALL BE  SUBJECT  TO
THE SUPERVISION AND AUDIT OF THE COMPTROLLER. THE COMPTROLLER AND HIS OR
HER  LEGALLY AUTHORIZED REPRESENTATIVE ARE AUTHORIZED AND EMPOWERED FROM
TIME TO TIME TO EXAMINE THE ACCOUNTS AND BOOKS OF THE AUTHORITY, INCLUD-
ING  ITS  RECEIPTS,  DISBURSEMENTS,  CONTRACTS,  LEASES,  SINKING FUNDS,
INVESTMENTS AND ANY OTHER RECORDS AND PAPERS RELATING TO  ITS  FINANCIAL
STANDING.
  2.  THE  COMPTROLLER MAY REQUIRE THE AUTHORITY TO BE THE SUBJECT OF AN
ANNUAL MANAGEMENT AND FINANCIAL AUDIT PERFORMED BY AN INDEPENDENT CERTI-
FIED ACCOUNTANT  SELECTED  BY  THE  COMPTROLLER.  SUCH  AUDITED  REPORT,
TOGETHER  WITH  THE AUDITED FINANCIAL STATEMENTS OF THE AUTHORITY, SHALL
BE SUBMITTED TO THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY, THE TEMPORARY
PRESIDENT OF THE SENATE, AND THE CHAIR AND RANKING  MINORITY  MEMBER  OF
THE  SENATE  FINANCE COMMITTEE AND THE CHAIR AND RANKING MINORITY MEMBER
OF THE ASSEMBLY WAYS AND MEANS COMMITTEE.
  S 3987. REMEDIES OF BONDHOLDERS. SUBJECT TO ANY RESOLUTION  OR  RESOL-
UTIONS ADOPTED BY THE AUTHORITY:
  1.  IN  THE  EVENT  THAT THE AUTHORITY SHALL DEFAULT IN THE PAYMENT OF
PRINCIPAL OF OR INTEREST ON ANY ISSUE OF  BONDS  AFTER  THE  SAME  SHALL
BECOME  DUE,  WHETHER  AT MATURITY OR UPON CALL FOR REDEMPTION, AND SUCH
DEFAULT SHALL CONTINUE FOR A PERIOD OF THIRTY DAYS, OR IN THE EVENT THAT
THE AUTHORITY SHALL FAIL OR REFUSE TO COMPLY WITH THE PROVISIONS OF THIS
TITLE OR SHALL DEFAULT IN ANY AGREEMENT MADE WITH  THE  HOLDERS  OF  ANY
ISSUE  OF BONDS, THE HOLDERS OF TWENTY-FIVE PERCENT IN AGGREGATE PRINCI-
PAL AMOUNT OF THE BONDS OF SUCH ISSUE THEN OUTSTANDING, BY INSTRUMENT OR
INSTRUMENTS FILED IN THE OFFICE OF THE CLERK OF THE COUNTY IN WHICH  THE
PRINCIPAL OFFICE OF THE AUTHORITY IS LOCATED AND PROVED AND ACKNOWLEDGED
IN  THE  SAME  MANNER AS A DEED TO BE RECORDED, MAY APPOINT A TRUSTEE TO
REPRESENT THE HOLDERS OF SUCH BONDS FOR THE  PURPOSE  PROVIDED  IN  THIS
SECTION.
  2.  SUCH TRUSTEE MAY, AND UPON WRITTEN REQUEST OF THE HOLDERS OF TWEN-
TY-FIVE PER CENTUM IN PRINCIPAL AMOUNT OF SUCH BONDS OUTSTANDING  SHALL,
IN HIS OR HER OR ITS OWN NAME:
  (A)  BY ACTION OR PROCEEDING IN ACCORDANCE WITH THE CIVIL PRACTICE LAW
AND RULES, ENFORCE ALL RIGHTS OF THE BONDHOLDERS AND REQUIRE THE AUTHOR-
ITY TO CARRY OUT ANY OTHER AGREEMENTS WITH THE HOLDERS OF SUCH BONDS AND
TO PERFORM ITS DUTIES UNDER THIS TITLE;
  (B) BRING AN ACTION OR PROCEEDING UPON SUCH BONDS;
  (C) BY ACTION OR PROCEEDING, REQUIRE THE AUTHORITY TO ACCOUNT AS IF IT
WERE THE TRUSTEE OF AN EXPRESS TRUST FOR THE HOLDERS OF SUCH BONDS;
  (D) BY ACTION OR PROCEEDING, ENJOIN ANY ACTS OR THINGS  WHICH  MAY  BE
UNLAWFUL OR IN VIOLATION OF THE RIGHTS OF THE HOLDERS OF SUCH BONDS; AND
  (E)  DECLARE ALL SUCH BONDS DUE AND PAYABLE, AND IF ALL DEFAULTS SHALL
BE MADE GOOD, THEN WITH THE CONSENT OF THE HOLDERS  OF  TWENTY-FIVE  PER
CENTUM  OF  THE  PRINCIPAL  AMOUNT OF SUCH BONDS THEN OUTSTANDING, ANNUL
SUCH DECLARATION AND ITS CONSEQUENCES.
  3. SUCH TRUSTEE SHALL, IN ADDITION TO THE PROVISIONS  OF  SUBDIVISIONS
ONE  AND  TWO OF THIS SECTION, HAVE AND POSSESS ALL OF THE POWERS NECES-
SARY OR APPROPRIATE FOR THE EXERCISE OF ANY FUNCTIONS  SPECIFICALLY  SET
FORTH IN THIS SECTION OR INCIDENT TO THE GENERAL REPRESENTATION OF BOND-
HOLDERS IN THE ENFORCEMENT AND PROTECTION OF THEIR RIGHTS.
  4. THE SUPREME COURT SHALL HAVE JURISDICTION OF ANY ACTION OR PROCEED-
ING  BY THE TRUSTEE ON BEHALF OF SUCH BONDHOLDERS. THE VENUE OF ANY SUCH
ACTION OR PROCEEDING SHALL BE LAID IN THE COUNTY OF ALBANY.
  S 3988. ASSISTANCE BY STATE OFFICERS, DEPARTMENTS, BOARDS AND  COMMIS-
SIONS.  1.  ALL OTHER STATE DEPARTMENTS, AGENCIES AND PUBLIC AUTHORITIES

A. 7703                             9

MAY RENDER SUCH SERVICES TO THE AUTHORITY WITHIN THEIR RESPECTIVE  FUNC-
TIONS AS MAY BE REQUESTED BY SUCH AUTHORITY.
  2.  UPON  REQUEST  OF THE AUTHORITY, ANY STATE DEPARTMENT OR AGENCY IS
HEREBY AUTHORIZED AND EMPOWERED TO TRANSFER TO THE AUTHORITY SUCH  OFFI-
CERS  AND EMPLOYEES AS IT MAY DEEM NECESSARY FROM TIME TO TIME TO ASSIST
SUCH CORPORATION IN CARRYING OUT ITS FUNCTIONS  AND  DUTIES  UNDER  THIS
ACT.  OFFICERS  AND  EMPLOYEES  SO TRANSFERRED SHALL NOT LOSE OR FORFEIT
THEIR CIVIL SERVICE STATUS OR RIGHTS.
  S 3989. APPLICABILITY. NOTWITHSTANDING ANY PROVISION OF LAW  CONTAINED
IN  THIS CHAPTER TO THE CONTRARY, THE AUTHORITY SHALL BE SUBJECT TO, AND
BE REQUIRED TO COMPLY WITH, THE FOLLOWING PROVISIONS SET FORTH IN  ARTI-
CLE  NINE  OF THIS CHAPTER ONLY: SUBPARAGRAPHS ONE, TWO, THREE, FOUR AND
FIVE-A OF PARAGRAPH (A)  OF  SUBDIVISION  ONE  OF  SECTION  TWENTY-EIGHT
HUNDRED  OF  THIS  CHAPTER; PARAGRAPHS (B) AND (C) OF SUBDIVISION ONE OF
SECTION TWENTY-EIGHT HUNDRED  OF  THIS  CHAPTER;  SUBDIVISION  THREE  OF
SECTION TWENTY-EIGHT HUNDRED OF THIS CHAPTER; SUBDIVISIONS ONE AND THREE
OF  SECTION TWENTY-EIGHT HUNDRED ONE OF THIS CHAPTER; SUBDIVISION ONE OF
SECTION TWENTY-EIGHT HUNDRED TWO OF THIS CHAPTER;  SECTION  TWENTY-EIGHT
HUNDRED THREE OF THIS CHAPTER; SECTION TWENTY-EIGHT HUNDRED FIVE OF THIS
CHAPTER;  PARAGRAPHS  (A),  (B), (D), (G) AND (H) OF SUBDIVISION ONE AND
SUBDIVISION TWO OF SECTION  TWENTY-EIGHT  HUNDRED  TWENTY-FOUR  OF  THIS
CHAPTER;  AND  SECTIONS  TWENTY-EIGHT  HUNDRED  FIFTY-SIX,  TWENTY-EIGHT
HUNDRED SEVENTY-NINE-A,  TWENTY-EIGHT  HUNDRED  NINETY  AND  TWENTY-NINE
HUNDRED TWENTY-FIVE OF THIS CHAPTER.
  S  2.  Paragraph  1 of subsection (a) of section 601 of the tax law is
amended by adding a new subparagraph (C) to read as follows:
  (C) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FIFTEEN,  AN  ADDI-
TIONAL TAX AT A RATE OF .25% OVER THE 6.85% RATE ESTABLISHED BY SUBPARA-
GRAPH  (B)  OF THIS PARAGRAPH FOR TAXPAYERS RESIDING IN THE METROPOLITAN
COMMUTER TRANSPORTATION DISTRICT CREATED  AND  ESTABLISHED  PURSUANT  TO
SECTION TWELVE HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW WHOSE NEW
YORK  TAXABLE  INCOME  IS  GREATER THAN $500,000 THAT SHALL APPLY TO NEW
YORK TAXABLE INCOME OF $500,000 OR MORE BUT LESS THAN $2,000,000.
  S 3. Paragraph 1 of subsection (b) of section 601 of the  tax  law  is
amended by adding a new subparagraph (C) to read as follows:
  (C)  FOR  TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FIFTEEN, AN ADDI-
TIONAL TAX AT A RATE OF .25% OVER THE 6.85% RATE ESTABLISHED BY SUBPARA-
GRAPH (B) OF THIS PARAGRAPH FOR TAXPAYERS RESIDING IN  THE  METROPOLITAN
COMMUTER  TRANSPORTATION  DISTRICT  CREATED  AND ESTABLISHED PURSUANT TO
SECTION TWELVE HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW WHOSE NEW
YORK TAXABLE INCOME IS GREATER THAN $500,000 THAT  SHALL  APPLY  TO  NEW
YORK TAXABLE INCOME OF $500,000 OR MORE BUT LESS THAN $2,000,000.
  S  4.  Paragraph  1 of subsection (c) of section 601 of the tax law is
amended by adding a new subparagraph (C) to read as follows:
  (C) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FIFTEEN,  AN  ADDI-
TIONAL TAX AT A RATE OF .25% OVER THE 6.85% RATE ESTABLISHED BY SUBPARA-
GRAPH  (B)  OF THIS PARAGRAPH FOR TAXPAYERS RESIDING IN THE METROPOLITAN
COMMUTER TRANSPORTATION DISTRICT CREATED  AND  ESTABLISHED  PURSUANT  TO
SECTION TWELVE HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW WHOSE NEW
YORK  TAXABLE  INCOME  IS  GREATER THAN $500,000 THAT SHALL APPLY TO NEW
YORK TAXABLE INCOME OF $500,000 OR MORE BUT LESS THAN $2,000,000.
  S 5. Notwithstanding any provisions of this act to the contrary, until
such time as the metropolitan  transportation  infrastructure  financing
authority  has  issued  bonds  pursuant  to  section  3980 of the public
authorities law and received the proceeds from the sale or  issuance  of
such  bonds, such authority shall distribute the revenue received pursu-

A. 7703                            10

ant to subdivision 6 of section 3981 of such law in accordance with  the
provisions of section 3982 of such law.
  S 6. This act shall take effect immediately.