STATE OF NEW YORK
        ________________________________________________________________________

                                         3353--A

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    January 22, 2021
                                       ___________

        Introduced  by  M.  of  A.  STECK, JACOBSON, STIRPE, ENGLEBRIGHT, BURKE,
          GOTTFRIED, EPSTEIN, PERRY, SIMON, LUPARDO,  HUNTER,  REYES,  ABINANTI,
          WILLIAMS, BARRON, KIM, BENEDETTO, L. ROSENTHAL, JOYNER, WALLACE, FAHY,
          DINOWITZ,  CRUZ, J. RIVERA, TAYLOR, DICKENS, GUNTHER, SEAWRIGHT, RICH-
          ARDSON, DE LA ROSA, CARROLL, GLICK, DAVILA, FERNANDEZ, COOK,  BRONSON,
          BICHOTTE HERMELYN,  DARLING, ANDERSON, NIOU, WALKER, O'DONNELL, MEEKS,
          KELLES, J. D. RIVERA, LUNSFORD, JEAN-PIERRE, ZINERMAN, CLARK, FRONTUS,
          McDONALD, BURDICK, FALL, SILLITTI -- Multi-Sponsored by --  M.  of  A.
          AUBRY,  HYNDMAN -- read once and referred to the Committee on Ways and
          Means -- reported and referred to the Committee on Ways and  Means  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee

        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:

     1    Section 1. Section 280-a of the tax law is REPEALED.
     2    § 2. Section 92-i of the state finance law is REPEALED.
     3    § 3. Section 92-b of the state finance law, as added by chapter 91  of
     4  the laws of 1965, subdivision 3 as amended by chapter 878 of the laws of

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04222-06-1

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     1  1977,  subdivision  4  as  amended  by  chapter 724 of the laws of 1979,
     2  subdivision 5 as added and subdivision 6 as renumbered by section  2  of
     3  chapter  3  of the laws of 1966, subdivision 7 as added by section 10 of
     4  part  SS1  of  chapter 57 of the laws of 2008 and such section as renum-
     5  bered by section 1 of chapter 3 of the laws of 1966, is amended to  read
     6  as follows:
     7    § 92-b. Stock transfer tax fund. 1. There is hereby established in the
     8  custody  of  the commissioner of taxation and finance a special fund, to
     9  be known as the stock transfer tax fund.
    10    2. Such fund shall consist of the  revenues  derived  from  the  stock
    11  transfer  tax  imposed  by  article  twelve of the tax law and all other
    12  moneys credited or transferred thereto from any  other  fund  or  source
    13  pursuant to law.
    14    3.  The moneys received from such tax and other sources in such fund[,
    15  after deducting the amount the  commissioner  of  taxation  and  finance
    16  shall  determine to be necessary for] shall be used to cover the reason-
    17  able costs of the state tax commission in administering, collecting  and
    18  distributing  [such]  the stock transfer tax, commencing with the fiscal
    19  year ending March thirty-first,  [nineteen  hundred  seventy-seven]  two
    20  thousand  twenty-three,  [shall  be  appropriated  to  (i) the municipal
    21  assistance corporation for the city of  New  York  created  pursuant  to
    22  title  three  of  article  ten of the public authorities law in order to
    23  enable such corporation to fulfill the terms of any agreements made with
    24  the holders of its notes and  bonds  and  to  carry  out  its  corporate
    25  purposes  including the maintenance of the capital reserve fund and (ii)
    26  to the extent such moneys  are  not  required  by  such  corporation  as
    27  provided  in  subdivision  seven of section ninety-two-d of this chapter
    28  and, after deducting the amount such commissioner shall determine to  be
    29  necessary  for  reasonable costs of the state tax commission in adminis-
    30  tering and making distributions in accordance  with  the  provisions  of
    31  section  two  hundred  eighty-a  of  the tax law from the stock transfer
    32  incentive fund, to the stock transfer incentive fund created pursuant to
    33  section ninety-two-i of this chapter to enable rebates to be  made  from
    34  such  fund  under  the provisions of section two hundred eighty-a of the
    35  tax law and (iii) to the extent such moneys are  not  required  by  such
    36  fund,  as  certified  by  the  commissioner of taxation and finance, the
    37  balance shall be appropriated to the city of New York, for  the  support
    38  of  local  government.]  and  the  remainder shall be deposited into the
    39  state general fund. Commencing with the fiscal year ending  March  thir-
    40  ty-first,  two  thousand twenty-three, such remainder shall be deposited
    41  into the following funds:
    42    (i) twenty-five percent shall be directed to the  metropolitan  trans-
    43  portation  authority  financial  assistance fund established pursuant to
    44  section ninety-two-ff of this article, of which fifty percent  shall  be
    45  used  for  the purpose of operations and fifty percent shall be used for
    46  the purpose of capital projects;
    47    (ii) ten percent shall be directed to  the  division  of  housing  and
    48  community renewal for the purpose of capital projects and other improve-
    49  ments to address issues relating to conditions of governance and habita-
    50  bility,  including but not limited to, heating, mold, or lead, and other
    51  such conditions affecting the health and safety of  tenants  at  housing
    52  developments owned or operated by the New York city housing authority;
    53    (iii)  fifteen  percent  shall  be  directed to the highway and bridge
    54  capital account in the dedicated highway and bridge  trust  fund  estab-
    55  lished pursuant to section eighty-nine-b of this article;

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     1    (iv)  nine  percent  shall  be  directed  to the dedicated highway and
     2  bridge trust fund established pursuant to section eighty-nine-b of  this
     3  article,  to  be  directed  towards  the infrastructure, maintenance and
     4  development of rail lines for AMTRAK in the northeast corridor;
     5    (v) five percent shall be directed to the local infrastructure account
     6  of  the general fund established pursuant to section seventy-two of this
     7  article to be directed to the  Consolidated  Local  Street  and  Highway
     8  Improvement Program (CHIPS);
     9    (vi)  five  percent  shall  be  directed  to  the local infrastructure
    10  account of the general fund to  be  dedicated  to  the  safe  water  and
    11  infrastructure  action  program  as established by section 3-0323 of the
    12  environmental conservation law;
    13    (vii) five percent shall be directed to the municipal assistance state
    14  aid fund established pursuant to section ninety-two-e of this article;
    15    (viii) four percent shall be directed to the dedicated mass  transpor-
    16  tation  trust  fund  to the credit of the non-MTA account for payment to
    17  downstate transit systems other than those transit systems  operated  by
    18  the metropolitan transportation authority;
    19    (ix)  four percent shall be directed to the dedicated mass transporta-
    20  tion trust fund to the credit of the  non-MTA  account  for  payment  to
    21  upstate transit systems;
    22    (x) thirteen percent shall be directed to the energy research develop-
    23  ment  operating  fund  pursuant  to  the  provisions of section eighteen
    24  hundred fifty-nine of the public authorities law, to be directed to  the
    25  clean energy fund and shall be divided equally among the four investment
    26  portfolios that make up such fund;
    27    (xi) two and one-half percent shall be directed to the city university
    28  of  New  York,  of  which fifty percent shall be used for the purpose of
    29  capital improvements and infrastructure projects and fifty percent shall
    30  be used for the purpose of supporting academic programs at city  of  New
    31  York institutions; and
    32    (xii)  two and one-half percent shall be directed to the state univer-
    33  sity of New York institutions, of which fifty percent shall be used  for
    34  the  purposes  of  supporting  and  expanding services and care at state
    35  university of New York hospitals, state university of New York  academic
    36  medical  centers  and  fifty  percent  shall  be used for the purpose of
    37  supporting academic programs at state  university  of  New  York  insti-
    38  tutions.
    39    4.  [After  the deduction of such costs of the state tax commission in
    40  administering, collecting and distributing such tax, the balances in the
    41  stock transfer tax fund so appropriated shall be distributed and paid on
    42  the last business day of September, December, March and  June  into  the
    43  special account established for the municipal assistance corporation for
    44  the  city  of  New York in the municipal assistance tax fund established
    45  pursuant to subdivision one of section  ninety-two-d  of  this  chapter,
    46  unless  and to the extent the balances in such fund on each such payment
    47  day are not required by such corporation as provided in said subdivision
    48  seven of said section ninety-two-d in which  case  the  balance  not  so
    49  required,  if  any,  after  the deduction of such costs of the state tax
    50  commission in administering and making distributions in accordance  with
    51  the  provisions  of section two hundred eighty-a of the tax law from the
    52  stock transfer incentive fund shall be distributed and paid to the stock
    53  transfer incentive fund in the custody of the commissioner  of  taxation
    54  and finance established pursuant to section ninety-two-i of this chapter
    55  and unless and to the extent that the balances in the stock transfer tax
    56  fund  on  each  such  payment day are not required by the stock transfer

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     1  incentive fund as provided in such section ninety-two-i of this  chapter
     2  in  which case the balance not so required, if any, shall be distributed
     3  and paid to the chief fiscal officer of the city of New York to be  paid
     4  into  the treasury of the city to the credit of the general fund or paid
     5  by the commissioner of taxation and finance to  such  other  account  or
     6  fund  as  may  be  designated in writing by such chief fiscal officer at
     7  least ten business days prior to such last day and on each such day, the
     8  commissioner of taxation and finance shall certify  to  the  comptroller
     9  the  amount deducted for administering, collecting and distributing such
    10  tax during such quarterly period and shall  pay  such  amount  into  the
    11  general  fund  of the state treasury to the credit of the state purposes
    12  fund therein. In no event shall any amount (other than the amount to  be
    13  deducted  for  administering,  collecting  and distributing such tax) be
    14  distributed or paid from the stock transfer tax fund to any person other
    15  than the municipal assistance corporation  for  the  city  of  New  York
    16  unless  and  until  the aggregate of all payments certified to the comp-
    17  troller as required by such corporation in  order  to  comply  with  its
    18  agreements  with the holders of its notes and bonds and to carry out its
    19  corporate purposes, including the maintenance  of  the  capital  reserve
    20  fund,  which  remain  unappropriated or unpaid to such corporation shall
    21  have been appropriated to such corporation and shall have been  paid  in
    22  full  provided,  however,  that no person, including such corporation or
    23  the holders of its notes or bonds shall have any lien on  such  tax  and
    24  such  agreements  shall  be executory only to the extent of the balances
    25  available to the state in such fund. If the balances in  such  fund  are
    26  not  required  by  such  corporation  pursuant to the provisions of this
    27  subdivision, on each such last  business  day  of  September,  December,
    28  March  and  June, the commissioner of taxation and finance shall certify
    29  to the comptroller the amount  deducted  for  administering  and  making
    30  distributions  in  accordance with the provisions of section two hundred
    31  eighty-a of the tax law from the stock transfer  incentive  fund  during
    32  such quarterly period and he shall pay such amount into the general fund
    33  of  the state treasury to the credit of the state purposes fund therein.
    34  To the extent such moneys are  not  required  by  such  corporation,  as
    35  provided  in  subdivision seven of section ninety-two-d of this chapter,
    36  no amount thereof (other than such amount to be deducted for administer-
    37  ing, collecting and distributing such tax and such costs in  administer-
    38  ing  and  making  distributions  in  accordance  with  the provisions of
    39  section two hundred eighty-a of the tax  law  from  the  stock  transfer
    40  incentive fund) shall be distributed or paid from the stock transfer tax
    41  fund  other than to such stock transfer incentive fund in the custody of
    42  the commissioner of taxation and finance unless and until the  aggregate
    43  of all payments certified to the comptroller by such commissioner pursu-
    44  ant  to  the  provisions  of such incentive fund as necessary to provide
    45  payments on account  of  rebates  authorized  pursuant  to  section  two
    46  hundred eighty-a of the tax law which remain unappropriated or unpaid to
    47  such  fund shall have been appropriated to such fund and shall have been
    48  paid in full provided, however, that no person, including  any  taxpayer
    49  under  article twelve of the tax law or any member or dealer referred to
    50  in subdivisions two-a and six of section two hundred  eighty-a  of  such
    51  law,  shall  have  any lien on this fund or the stock transfer incentive
    52  fund.
    53    5. In no fiscal year shall the total amount paid from the fund  exceed
    54  the  total  collections  during such fiscal year from the stock transfer
    55  tax pursuant to the provisions of article twelve of the tax law  and  as
    56  deposited to the credit of the stock transfer tax fund.

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     1    6.] All payments from the stock transfer tax fund shall be made on the
     2  audit and warrant of the comptroller on vouchers approved by the commis-
     3  sioner of taxation and finance.
     4    [7.  When  all  the notes and bonds of the municipal assistance corpo-
     5  ration for the city of New York have been  fully  paid  and  discharged,
     6  together  with  interest  thereon and interest on unpaid installments of
     7  interest, and the chairman of the corporation makes  the  final  certif-
     8  ication  required  by  subdivision seven of section ninety-two-d of this
     9  article, the comptroller must notify the commissioner  of  taxation  and
    10  finance  that  all  remaining  funds held in the stock transfer tax fund
    11  must be released to the stock transfer incentive fund.  From  that  time
    12  forward,  all  funds previously deposited in the stock transfer tax fund
    13  pursuant to subdivision two of this section will be  deposited  directly
    14  into  the stock transfer incentive fund pursuant to all the rules, regu-
    15  lations or instructions  that  the  commissioner  may  prescribe,  after
    16  deducting  the  amount  the  commissioner determines to be necessary for
    17  reasonable costs of the  department  in  administering,  collecting  and
    18  distributing  the tax imposed by article twelve of the tax law. Notwith-
    19  standing any other provisions of  this  article,  to  the  extent  those
    20  moneys  are  not  required  by the stock transfer incentive fund for the
    21  purpose of administering and making distributions in accordance with the
    22  provisions of section two hundred eighty-a of the tax law, as  certified
    23  by  the commissioner of taxation and finance, the balance will be appro-
    24  priated to the city of New York for the support of local government.]
    25    § 4. Paragraph (c) of subdivision 1  of  section  93-b  of  the  state
    26  finance  law,  as added by section 1 of part H of chapter 60 of the laws
    27  of 2015, is amended to read as follows:
    28    (c) Sources of funds. The sources of funds shall consist of all moneys
    29  collected therefor, or  moneys  credited,  appropriated  or  transferred
    30  thereto  from  any  other  fund  or  source pursuant to law or any other
    31  moneys made available for the purposes of the fund,  including  but  not
    32  limited  to  funds transferred from the stock transfer tax fund pursuant
    33  to subdivision three of section ninety-two-b of this article  and  funds
    34  transferred  from  the  stock  transfer  incentive  fund  established by
    35  section ninety-two-i of this article and repealed by a  chapter  of  the
    36  laws  of  two  thousand  twenty-one, which amended this paragraph.   Any
    37  interest received by the comptroller  on  moneys  on  deposit  shall  be
    38  retained and become part of the fund, unless otherwise directed by law.
    39    §  5.  Subdivision (c) of section 11-503 of the administrative code of
    40  the city of New York is REPEALED.
    41    § 6. Subdivision 12 of section 11-604 of the  administrative  code  of
    42  the city of New York is REPEALED.
    43    §  7.  All  monies  accumulated  in  the stock transfer incentive fund
    44  established pursuant to section 92-i of the state  finance  law  on  the
    45  effective date of this act shall be transferred to the dedicated infras-
    46  tructure  investment  fund  as  established by section 93-b of the state
    47  finance law for the purposes set forth in such section.
    48    § 8. The environmental conservation law is amended  by  adding  a  new
    49  section 3-0323 to read as follows:
    50  § 3-0323. Safe water and infrastructure action program.
    51    1.  Notwithstanding  any other provisions of this chapter or any other
    52  law and subject to an appropriation made therefor and in accordance with
    53  the provisions of this  section  and  with  the  rules  and  regulations
    54  promulgated  by  the  commissioner in connection therewith, on and after
    55  the first day of April, two thousand twenty-two,  a  consolidated  local
    56  infrastructure  program  is hereby established for the purpose of making

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     1  payments toward the replacement and  rehabilitation  of  existing  local
     2  municipally-owned  and  funded  drinking water, storm water and sanitary
     3  sewer systems. For purposes of this section, such program shall apply to
     4  any  county,  city,  town  or village drinking water system, storm water
     5  system or sanitary sewer system within the state that is not  under  the
     6  maintenance and/or operational jurisdiction of the state nor any private
     7  entity.  The commissioner, in conjunction with the environmental facili-
     8  ties corporation, shall promulgate all necessary rules  and  regulations
     9  to  carry out the program so that an equitable distribution of aid shall
    10  be made for the general operation  and/or  general  maintenance  of  any
    11  existing  county,  city,  town  and village drinking water system, storm
    12  water system or sanitary sewer system.
    13    2. On or before the twenty-fifth day of  April,  June,  September  and
    14  November of each state fiscal year commencing with the state fiscal year
    15  beginning  on  April  first,  two  thousand twenty-three, there shall be
    16  distributed and paid to counties, cities, towns and villages  an  amount
    17  equal  to  the  moneys  appropriated  for  the  purposes of this section
    18  divided by the number of payment dates in that state fiscal  year.  Such
    19  amounts  shall  be distributed and paid pursuant to subdivision three of
    20  this section.
    21    3. Amounts shall be distributed for local drinking water, storm  water
    22  and  sanitary sewer systems based upon the total length and width of all
    23  pipelines and mains owned and operated by the municipality.
    24    4. Monies made available may be used to match other state and  federal
    25  funds  made  available for such projects.  The funds may also be used to
    26  support special improvement districts created to provide drinking water,
    27  waste water and storm water services under  articles  twelve,  twelve-A,
    28  twelve-C  and thirteen of the town law.  The remainder of the apportion-
    29  ment may be used for any existing drinking water, storm water  or  sewer
    30  system purchases, including but not limited to, the acquisition of mate-
    31  rials for the replacement or rehabilitation.
    32    5.  For  any  city,  town,  or  village  which proposes infrastructure
    33  consolidation under this section or merges  with  another  municipality,
    34  the funds appropriated under this section may fund costs associated with
    35  such consolidation.
    36    6.  For each fiscal year, starting in two thousand twenty-three, funds
    37  are to be made available to the local infrastructure assistance  account
    38  of  the  general  fund,  and distributed from that account, in an amount
    39  that is at least equal to those appropriated and made available  in  the
    40  Consolidated Local Street and Highway Improvement Program (CHIPS).
    41    §  9. Subdivision 3 of section 270 of the tax law, as amended by chap-
    42  ter 301 of the laws of 1967, is amended and two new subdivisions 3-a and
    43  9 are added to read as follows:
    44    3.  It shall be the duty of the person or persons [making or  effectu-
    45  ating the sale or transfer, including the person or persons] to whom the
    46  sale  or  transfer  is  made,  to  pay the tax provided by this article,
    47  unless the parties to the sale or transfer agree to  otherwise  allocate
    48  the  cost  of  such  tax  among themselves; provided, however, that this
    49  subdivision shall not apply to any sale or transfer wherein  the  vendor
    50  or  transferor  is  a  governmental entity or international organization
    51  which is not subject to the tax.
    52    3-a. No purchaser of a stock or other  certificate  in  a  transaction
    53  covered  under  this article shall have legal title or ownership of such
    54  stock or certificate unless such purchaser has proof of purchase  demon-
    55  strating  that  such  tax  has been paid.   Such proof of purchase shall
    56  consist of either: (a) a receipt for the transaction showing  that  such

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     1  tax  has  been  paid,  the amount of such tax paid, and a representation
     2  that such amount constitutes payment in full; or (b)  a  stamp  required
     3  pursuant to subdivision four of this section.
     4    9.  Notwithstanding any other provision to the contrary, a transaction
     5  referred to in subdivision one of this section is subject to tax if  any
     6  activity in furtherance of the transaction occurs within the state or if
     7  a  party  involved  in  the  transaction satisfies a nexus with New York
     8  state which shall be defined as broadly as is permitted under the United
     9  States Constitution.
    10    § 10. This act shall take effect immediately.