Bill Text: NY A05423 | 2017-2018 | General Assembly | Introduced
Bill Title: Enacts the small business full employment act; enacts various measures to provide tax and regulatory relief for small businesses to encourage growth.
Spectrum: Partisan Bill (Republican 34-1)
Status: (Introduced - Dead) 2018-06-14 - held for consideration in ways and means [A05423 Detail]
Download: New_York-2017-A05423-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5423 2017-2018 Regular Sessions IN ASSEMBLY February 8, 2017 ___________ Introduced by M. of A. KOLB, BARCLAY, BLANKENBUSH, BRABENEC, BUTLER, CROUCH, CURRAN, DiPIETRO, FINCH, FITZPATRICK, FRIEND, GARBARINO, GIGLIO, GOODELL, GRAF, HAWLEY, JOHNS, LALOR, LAWRENCE, LOPEZ, LUPINAC- CI, MALLIOTAKIS, McDONOUGH, McKEVITT, MONTESANO, MURRAY, OAKS, PALMES- ANO, PALUMBO, RA, RAIA, STEC, WALTER -- Multi-Sponsored by -- M. of A. MAGEE -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law and the administrative code of the city of New York, in relation to a tax deduction for small business (Part A); to amend the tax law, in relation to small business employee retention tax credit (Part B); to amend the tax law in relation to small busi- ness hire-NY tax credit (Part C); relating to directing the commis- sioner of taxation and finance to develop a small business sales tax amnesty program (Part D); to amend the public service law, in relation to the temporary state energy and utility service conservation assess- ment; and to repeal certain provisions of such law relating thereto (Part E); to amend the tax law, in relation to the college to work program and credit (Part F); to amend the executive law, the state administrative procedure act and the legislative law, in relation to the division of regulatory review and economic growth (Part G); relat- ing to directing the commissioner of the department of economic devel- opment to develop a small business regulatory amnesty program (Part H); and to amend the legislative law, in relation to an unfunded mandate moratorium (Part I) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as the "Small 2 Business Full Employment Act". 3 § 2. This act enacts into law components of legislation relating to 4 "Small Business Full Employment Act". Each component is wholly contained 5 within a Part identified as Parts A through I. The effective date for 6 each particular provision contained within such Part is set forth in the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08211-01-7A. 5423 2 1 last section of such Part. Any provision in any section contained within 2 a Part, including the effective date of the Part, which makes reference 3 to a section "of this act", when used in connection with that particular 4 component, shall be deemed to mean and refer to the corresponding 5 section of the Part in which it is found. 6 PART A 7 Section 1. Subparagraph (iv) of paragraph (a) of subdivision 1 of 8 section 210 of the tax law, as amended by section 12 of part A of chap- 9 ter 59 of the laws of 2014, is amended to read as follows: 10 (iv) (A) for taxable years beginning before January first, two thou- 11 sand sixteen, if the business income base is not more than two hundred 12 ninety thousand dollars the amount shall be six and one-half percent of 13 the business income base; if the business income base is more than two 14 hundred ninety thousand dollars but not over three hundred ninety thou- 15 sand dollars the amount shall be the sum of (1) eighteen thousand eight 16 hundred fifty dollars, (2) seven and one-tenth percent of the excess of 17 the business income base over two hundred ninety thousand dollars but 18 not over three hundred ninety thousand dollars and (3) four and thirty- 19 five hundredths percent of the excess of the business income base over 20 three hundred fifty thousand dollars but not over three hundred ninety 21 thousand dollars; 22 (B) for taxable years beginning on or after January first, two thou- 23 sand seventeen, if the business income base is not more than five 24 hundred thousand dollars the amount shall be four percent of the busi- 25 ness income base; if the business income base is more than five hundred 26 thousand dollars but not over six hundred thousand dollars the amount 27 shall be the sum of (1) twenty thousand dollars, (2) six and one-half 28 percent of the excess of the business income base over five hundred 29 thousand dollars but not over six hundred thousand dollars and (3) twen- 30 ty-five percent of the excess of the business income base over five 31 hundred fifty thousand dollars but not over six hundred thousand 32 dollars; 33 (C) for taxable years beginning on or after January first, two thou- 34 sand eighteen, if the business income base is not more than five hundred 35 thousand dollars the amount shall be two and one-half percent of the 36 business income base; if the business income base is more than five 37 hundred thousand dollars but not over six hundred thousand dollars the 38 amount shall be the sum of (1) twelve thousand five hundred dollars, (2) 39 six and one-half percent of the excess of the business income base over 40 five hundred thousand dollars but not over six hundred thousand dollars 41 and (3) forty percent of the excess of the business income base over 42 five hundred fifty thousand dollars but not over six hundred thousand 43 dollars. 44 § 2. Paragraph 39 of subsection (c) of section 612 of the tax law, as 45 added by section 1 of part Y of chapter 59 of the laws of 2013, is 46 amended to read as follows: 47 (39) (A) In the case of a taxpayer who is a small business or a 48 taxpayer who is a member, partner, or shareholder of a limited liability 49 company, partnership, or New York S corporation, respectively, that is a 50 small business, who or which has business income [and/or farm income] as 51 defined in the laws of the United States, an amount equal to [three] 52 five percent of the net items of income, gain, loss and deduction 53 attributable to such business [or farm] entering into federal adjusted 54 gross income, but not less than zero, for taxable years beginning afterA. 5423 3 1 two thousand [thirteen] seventeen, an amount equal to [three and three-2quarters] ten percent of the net items of income, gain, loss and 3 deduction attributable to such business [or farm] entering into federal 4 adjusted gross income, but not less than zero, for taxable years begin- 5 ning after two thousand [fourteen] eighteen, [and] an amount equal to 6 [five] fifteen percent of the net items of income, gain, loss and 7 deduction attributable to such business [or farm] entering into federal 8 adjusted gross income, but not less than zero[, for taxable years begin-9ning after two thousand fifteen.] 10 (B) In the case of a taxpayer who is a farm business or a taxpayer who 11 is a member, partner, or shareholder of a limited liability company, 12 partnership, or New York S corporation, respectively, that is a farm 13 business, who or which has farm income as defined by the laws of the 14 United States, an amount equal to twenty percent of the net items of 15 income, gain, loss and deduction attributable to such farm. The term 16 farm business shall mean a farm business that has net farm income of 17 less than six hundred thousand dollars. 18 (C)(i) For the purposes of this paragraph, the term small business 19 shall mean: (I) a sole proprietor [or a farm business who employs one or20more persons during the taxable year and] who has net business income 21 [or net farm income] of less than [two hundred fifty] six hundred thou- 22 sand dollars ; or (II) a limited liability company, partnership or New 23 York S corporation that during the taxable year has New York gross busi- 24 ness income attributable to a non-farm business that is greater than 25 zero but less than one million five hundred thousand dollars or net farm 26 income attributable to a farm business that is greater than zero but 27 less than six hundred thousand dollars. 28 (ii) For purposes of this paragraph, the term New York gross business 29 income shall mean: (I) in the case of a limited liability company or a 30 partnership, New York source gross income as defined in subparagraph (B) 31 of paragraph three of subsection (c) of section six hundred fifty-eight 32 of this article, and, (II) in the case of a New York S corporation, New 33 York receipts included in the numerator of the apportionment factor 34 determined under section two hundred ten-A of this chapter for the taxa- 35 ble year. 36 (D) To qualify for this modification in relation to a non-farm small 37 business that is a limited liability company, partnership or New York S 38 corporation, the taxpayer's income attributable to the net business 39 income from its ownership interests in non-farm limited liability compa- 40 nies, partnerships or New York S corporations must be less than six 41 hundred thousand dollars. 42 § 3. Paragraph 35 of subdivision (c) of section 11-1712 of the admin- 43 istrative code of the city of New York, as added by section 2 of part Y 44 of chapter 59 of the laws of 2013, is amended to read as follows: 45 (35) (A) In the case of a taxpayer who is a small business or a 46 taxpayer who is a member, partner, or shareholder of a limited liability 47 company, partnership, or New York S corporation, respectively, that is a 48 small business, who or which has business income [and/or farm income] as 49 defined in the laws of the United States, an amount equal to [three] 50 fifteen percent of the net items of income, gain, loss and deduction 51 attributable to such business [or farm] entering into federal adjusted 52 gross income, but not less than zero[, for taxable years beginning after53two thousand thirteen, an amount equal to three and three-quarters54percent of the net items of income, gain, loss and deduction attribut-55able to such business or farm entering into federal adjusted gross56income, but not less than zero, for taxable years beginning after twoA. 5423 4 1thousand fourteen, and an amount equal to five percent of the net items2of income, gain, loss and deduction attributable to such business or3farm entering into federal adjusted gross income, but not less than4zero, for taxable years beginning after two thousand fifteen]. 5 (B) In the case of a taxpayer who is a farm business or a taxpayer who 6 is a member, partner, or shareholder of a limited liability company, 7 partnership, or New York S corporation, respectively, that is a farm 8 business, who or which has farm income as defined by the laws of the 9 United States, an amount equal to twenty percent of the net items of 10 income, gain, loss and deduction attributable to such farm. The term 11 farm business shall mean a farm business that has net farm income of 12 less than six hundred thousand dollars. 13 (C) (i) For the purposes of this paragraph, the term small business 14 shall mean: (I) a sole proprietor [or a farm business who employs one or15more persons during the taxable year and] who has net business income 16 [or net farm income] of less than [two hundred fifty] six hundred thou- 17 sand dollars ; or (II) a limited liability company, partnership or New 18 York S corporation that during the taxable year has New York gross busi- 19 ness income attributable to a non-farm business that is greater than 20 zero but less than one million five hundred thousand dollars or net farm 21 income attributable to a farm business that is greater than zero but 22 less than six hundred thousand dollars. 23 (ii) For purposes of this paragraph, the term New York gross business 24 income shall mean: (I) in the case of a limited liability company or 25 partnership, New York source gross income as defined in subparagraph (B) 26 of paragraph three of subsection (c) of section six hundred fifty-eight 27 of the tax law, and, (II) in the case of a New York S corporation, New 28 York receipts included in the numerator of the apportionment factor 29 determined under section two hundred ten-A of the tax law for the taxa- 30 ble year. 31 (D) To qualify for this modification in relation to a non-farm small 32 business that is a limited liability company, partnership or New York S 33 corporation, the taxpayer's income attributable to the net business 34 income from its ownership interests in non-farm limited liability compa- 35 nies, partnerships or New York S corporations must be less than six 36 hundred thousand dollars. 37 § 4. This act shall take effect immediately and shall apply to taxable 38 years beginning on or after January 1, 2018. 39 PART B 40 Section 1. The tax law is amended by adding a new section 42 to read 41 as follows: 42 § 42. Small business employee retention tax credit. (a) Allowance of 43 credit. A small business taxpayer, which is subject to tax under arti- 44 cle nine-A or twenty-two of this chapter and retains the base year 45 employment level, shall be allowed a credit against such tax. The credit 46 shall be one thousand dollars for small businesses that retain between 47 one and ten employees; two thousand five hundred dollars for small busi- 48 nesses that retain between eleven and twenty-five employees; three thou- 49 sand five hundred dollars for small businesses that retain between twen- 50 ty-six and fifty employees; and five thousand dollars for small 51 businesses that retain between fifty-one and one hundred employees. 52 (b) Definitions. As used in this section, the following terms shall 53 have the following meanings:A. 5423 5 1 (1) "Small business taxpayer" shall mean an employer with at least one 2 employee but not more than one hundred full-time employees. 3 (2) "Base year" shall mean the prior tax year. 4 (3) "Employee" shall mean an individual employed on a full-time basis. 5 (c) No credit shall be allowed under this section to a taxpayer for 6 any new employee if the taxpayer claims any other credit under this 7 article for such new employee where the basis of such other credit is an 8 increase in employment. 9 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 10 sion 52 to read as follows: 11 52. Small business employee retention tax credit. (a) Allowance of 12 credit. A taxpayer will be allowed a credit, to be computed as provided 13 in section forty-two of this chapter, against the tax imposed by this 14 article. 15 (b) Application of credit. The credit allowed under this subdivision 16 for any taxable year may not reduce the tax due for such year to less 17 than the amount prescribed in paragraph (d) of subdivision one of 18 section two hundred ten of this article. However, if the amount of cred- 19 it allowed under this subdivision for any taxable year reduces the tax 20 to such amount, any amount of credit thus not deductible in such taxable 21 year will be treated as an overpayment of tax to be credited or refunded 22 in accordance with the provisions of section one thousand eighty-six of 23 this chapter. Provided, however, the provisions of subsection (c) of 24 section one thousand eighty-eight of this chapter notwithstanding, no 25 interest will be paid thereon. 26 § 3. Section 606 of the tax law is amended by adding a new subsection 27 (ccc) to read as follows: 28 (ccc) Small business employee retention tax credit. (1) A taxpayer 29 will be allowed a credit, to the extent allowed under section forty-two 30 of this chapter, against the tax imposed by this article. 31 (2) Application of credit. The credit allowed under this subsection 32 for any taxable year may not reduce the tax due for such year to less 33 than the amount prescribed in paragraph (d) of subdivision one of 34 section two hundred ten of this chapter. However, if the amount of 35 credit allowed under this subsection for any taxable year reduces the 36 tax to such amount, any amount or credit thus not deductible in such 37 taxable year will be treated as an overpayment of tax to be credited or 38 refunded in accordance with the provisions of section one thousand 39 eighty-six of this chapter. Provided, however, the provisions of 40 subsection (c) of section one thousand eighty-eight of this chapter 41 notwithstanding, no interest will be paid thereon. 42 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 43 of the tax law is amended by adding a new clause (xliii) to read as 44 follows: 45 (xliii) Small business employee Amount of credit under 46 retention tax credit under subdivision fifty-two of 47 subsection (ccc) section two hundred ten-B 48 § 5. This act shall take effect immediately and shall apply to taxable 49 years beginning on or after January 1, 2018. 50 PART C 51 Section 1. The tax law is amended by adding a new section 43 to read 52 as follows: 53 § 43. Small business hire-NY tax credit. (a) Allowance of credit. A 54 small business taxpayer, which is subject to tax under article nine-A orA. 5423 6 1 twenty-two of this chapter and creates a new job, shall be allowed a 2 credit against such tax. The credit shall be five thousand dollars for 3 any new job for one full year of employment by an employee; if that 4 employee has been hired for less than a full tax year this amount shall 5 be prorated and apportioned to each tax year. 6 (b) Definitions. As used in this section, the following terms shall 7 have the following meanings: 8 (1) "Small business taxpayer" shall mean an employer with at least one 9 employee but not more than one hundred full-time employees. 10 (2) "Base year" shall mean the prior tax year. 11 (3) "New job" shall mean the number of full-time employees or full- 12 time equivalent employees above the number of employees during the base 13 year. For a new business, base employment shall begin at zero. 14 (4) "Employee" shall mean an individual employed on a full-time basis. 15 (c) No credit shall be allowed under this section to a taxpayer for 16 any new employee if the taxpayer claims any other credit under this 17 article for such new employee where the basis of such other credit is an 18 increase in employment. 19 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 20 sion 53 to read as follows: 21 53. Small business hire-NY tax credit. (a) Allowance of credit. A 22 taxpayer will be allowed a credit, to be computed as provided in section 23 forty-three of this chapter, against the tax imposed by this article. 24 (b) Application of credit. The credit allowed under this subdivision 25 for any taxable year may not reduce the tax due for such year to less 26 than the amount prescribed in paragraph (d) of subdivision one of 27 section two hundred ten of this article. However, if the amount of cred- 28 it allowed under this subdivision for any taxable year reduces the tax 29 to such amount, any amount of credit thus not deductible in such taxable 30 year will be treated as an overpayment of tax to be credited or refunded 31 in accordance with the provisions of section one thousand eighty-six of 32 this chapter. Provided, however, the provisions of subsection (c) of 33 section one thousand eighty-eight of this chapter notwithstanding, no 34 interest will be paid thereon. 35 § 3. Section 606 of the tax law is amended by adding a new subsection 36 (hhh) to read as follows: 37 (hhh) Small business hire-NY tax credit. (1) A taxpayer will be 38 allowed a credit, to the extent allowed under section forty-three of 39 this chapter, against the tax imposed by this article. 40 (2) Application of credit. The credit allowed under this subdivision 41 for any taxable year may not reduce the tax due for such year to less 42 than the amount prescribed in paragraph (d) of subdivision one of 43 section two hundred ten of this article. However, if the amount of cred- 44 it allowed under this subdivision for any taxable year reduces the tax 45 to such amount, any amount of credit thus not deductible in such taxable 46 year will be treated as an overpayment of tax to be credited or refunded 47 in accordance with the provisions of section one thousand eighty-six of 48 this chapter. Provided, however, the provisions of subsection (c) of 49 section one thousand eighty-eight of this chapter notwithstanding, no 50 interest will be paid thereon. 51 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 52 of the tax law is amended by adding a new clause (xliv) to read as 53 follows: 54 (xliv) Small business hire-NY tax Amount of credit under 55 credit under subsection subdivision fifty-three of 56 (eee) section two hundred ten-BA. 5423 7 1 § 5. This act shall take effect immediately and shall apply to taxable 2 years beginning on or after January 1, 2018. 3 PART D 4 Section 1. The commissioner of taxation and finance shall develop and 5 implement a "sales tax amnesty program" which allows a period of time 6 for small businesses to pay a defined payment of tax amount due as a 7 result of an audit by the department of taxation and finance, in 8 exchange for forgiveness of a tax liability, including interest and 9 penalties. Small businesses are businesses with less than one hundred 10 employees. 11 § 2. This act shall take effect immediately. 12 PART E 13 Section 1. Subdivision 6 of section 18-a of the public service law is 14 REPEALED. 15 § 2. Paragraph (g) of subdivision 2 of section 18-a of the public 16 service law, as amended by section 2 of part A of chapter 173 of the 17 laws of 2013, is amended to read as follows: 18 (g) The total amount which may be charged to any public utility compa- 19 ny and the Long Island power authority under authority of this subdivi- 20 sion for any state fiscal year shall not exceed one-third of one per 21 centum of such public utility company's or authority's gross operating 22 revenues derived from intrastate utility operations in the last preced- 23 ing calendar year, or other twelve month period as determined by the 24 chairman; provided, however, that no corporation or person that is 25 subject to the jurisdiction of the commission only with respect to safe- 26 ty, or the power authority of the state of New York, shall be subject to 27 the general assessment provided for under this subdivision. 28 Notwithstanding the provisions of subdivision one of this section, for 29 telephone corporations as defined in subdivision seventeen of section 30 two of this article, the total amount which may be charged such corpo- 31 rations for department expenses under the authority of subdivision one 32 of this section for any state fiscal year shall not exceed one-third of 33 one percentum of such corporation's gross operating revenue, over and 34 above five hundred thousand dollars, derived from intrastate utility 35 operations in the last preceding calendar year, or other twelve month 36 period as determined by the chairman. 37 § 3. This act shall take effect immediately. 38 PART F 39 Section 1. Section 210-B of the tax law is amended by adding a new 40 subdivision 54 to read as follows: 41 54. Credit for college to work program. (a) Allowance of credit. A 42 taxpayer who is a small business shall be allowed a credit, to be 43 computed as hereinafter provided, against the tax imposed by this arti- 44 cle, based upon its payment of tuition to an institution of higher 45 education on behalf of a qualified individual employee for a number of 46 years, as set forth in a written agreement between the small business 47 taxpayer and the individual employee. 48 (b) Tuition. For the purposes of this credit, the term "tuition" shall 49 mean the tuition and fees paid for the enrollment and attendance of a 50 qualified individual employee at an institution of higher education, asA. 5423 8 1 well as monies paid for textbooks in connection with attendance at an 2 institution of higher education. Provided, however, any amounts which 3 have been paid for or reimbursed by any other scholarships or financial 4 aid, or tuition required for enrollment or attendance in a course of 5 study leading to the granting of a post baccalaureate or other graduate 6 degree, shall be excluded form the definition of "tuition". 7 (c) Institution of higher education. For the purposes of this credit, 8 the term "institution of higher education" shall mean any institution of 9 higher education, recognized and approved by the regents, or any succes- 10 sor organization, of the university of the state of New York or accred- 11 ited by a nationally recognized accrediting agency or association 12 accepted as such by the regents, or any successor organization, of the 13 university of the state of New York, which provides a course of study 14 leading to the granting of a post-secondary degree, certificate or 15 diploma. 16 (d) Qualified individual employee. For purposes of this credit, the 17 term "qualified individual employee" shall mean any individual employee 18 who is not a spouse, child or dependent of the taxpayer or any individ- 19 ual employee who is not a spouse, child or dependent of any officer or 20 employee of the taxpayer. 21 (e) Written agreement. For purposes of this credit, the term "written 22 agreement" shall mean a document signed and dated by both the small 23 business taxpayer and the qualified individual employee which contains 24 provisions including but not limited to the minimum salary which the 25 taxpayer will pay to the qualified individual upon completion of the 26 individual's degree; the required duration of employment upon completion 27 of the individual's degree; and the parties' respective responsibilities 28 in the event that the taxpayer ceases operations or later decides not to 29 offer employment to the individual upon completion of his/her degree or 30 in the event that the qualified individual fails to complete the degree 31 or to work for the taxpayer for the agreed upon term. 32 (f) Small business. For purposes of this credit, the term "small busi- 33 ness" shall mean any business with less than one hundred employees. 34 (g) Amount of credit. Notwithstanding the provision of any other law, 35 a taxpayer which provides for the payment of an individual employee's 36 tuition under the college to work program established by this subdivi- 37 sion, shall be allowed a credit against the tax imposed by this article, 38 to the extent of twenty-five percent of monies paid for each individ- 39 ual's tuition, but such credit shall not exceed five thousand dollars 40 for one year for each such qualified individual. 41 (h) Carryover. The credit allowed under this subdivision for any taxa- 42 ble year shall not reduce the tax due for such year to less than the 43 amount prescribed in paragraph (d) of subdivision one of section two 44 hundred ten of this article. Provided, however, if the amount of credit 45 allowable under this subdivision for any taxable year reduces the tax to 46 such amount, any amount of credit not deductible in such taxable year 47 may be carried over to the following year or years, and may be deducted 48 from the taxpayer's tax for such year or years. 49 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 50 of the tax law is amended by adding a new clause (xiiv) to read as 51 follows: 52 (xiiv) College to work program Amount of credit under 53 credit under subsection (s-1) subdivision fifty-four 54 of section two hundred ten-B 55 § 3. Section 606 of the tax law is amended by adding a new subsection 56 (s-1) to read as follows:A. 5423 9 1 (s-1) Credit for college to work program. (1) Allowance of credit. A 2 taxpayer who is a small business shall be allowed a credit, to be 3 computed as hereinafter provided, against the tax imposed by this arti- 4 cle, based upon such taxpayer's payment of tuition to an institution of 5 higher education on behalf of a qualified individual employee in 6 exchange for the individual agreeing to work for the taxpayer for a 7 number of years, as set forth in a written agreement between the taxpay- 8 er and the individual. For the purpose of this subsection "small busi- 9 ness" shall mean a business which has one hundred or fewer employees. 10 (2) Tuition. For the purposes of this credit, the term "tuition" shall 11 mean the tuition and fees paid for the enrollment and attendance of an 12 individual at an institution of higher education, as well as monies paid 13 for textbooks in connection with attendance at an institution of higher 14 education. Provided, however, any amounts which have been paid for or 15 reimbursed by any other scholarships or financial aid, or tuition 16 required for enrollment or attendance in a course of study leading to 17 the granting of a post baccalaureate or other graduate degree, shall be 18 excluded from the definition of "tuition". 19 (3) Institution of higher education. For the purposes of this credit, 20 the term "institution of higher education" shall mean any institution of 21 higher education, recognized and approved by the regents, or any succes- 22 sor organization, of the university of the state of New York or accred- 23 ited by a nationally recognized accrediting agency or association 24 accepted as such by the regents, or any successor organization, of the 25 university of the state of New York, which provides a course of study 26 leading to the granting of a post-secondary degree, certificate or 27 diploma. 28 (4) Qualified individual employee. For purposes of this credit, the 29 term "qualified individual employee" shall mean any individual employee 30 who is not a spouse, child or dependent of the taxpayer or any individ- 31 ual employee who is not a spouse, child or dependent of any officer or 32 employee of the taxpayer. 33 (5) Written agreement. For purposes of this credit, the term "written 34 agreement" shall mean a document signed and dated by both the small 35 business taxpayer and the qualified individual employee which contains 36 provisions including but not limited to the minimum salary which the 37 taxpayer will pay to the qualified individual upon completion of the 38 individual's degree; the required duration of employment upon completion 39 of the individual's degree; and the parties' respective responsibilities 40 in the event that the taxpayer ceases operations or later decides not to 41 offer employment to the individual upon completion of his/her degree or 42 in the event that the qualified individual fails to complete the degree 43 or to work for the taxpayer for the agreed upon term. 44 (6) Small business. For purposes of this credit, the term "small busi- 45 ness" shall mean any business with less than one hundred employees. 46 (7) Amount of credit. Notwithstanding the provisions of any other law, 47 a taxpayer who provides for the payment of an individual employee's 48 tuition under the college to work program established by this 49 subsection, shall be allowed a credit against the tax imposed by this 50 article, to the extent of twenty-five percent of monies paid for each 51 individual's tuition, but such credit shall not exceed five thousand 52 dollars for one year for each such qualified individual. 53 (8) Carryover. If the amount of credit allowable under this subsection 54 for any taxable year exceeds the taxpayer's tax for such year, any 55 amount of credit not deductible in such taxable year may be carried overA. 5423 10 1 to the following year or years and may be deducted from the taxpayer's 2 tax for such year or years. 3 § 4. This act shall take effect immediately and shall apply to all 4 taxable years commencing after January 1, 2018. 5 PART G 6 Section 1. Article 50 and sections 1000, 1001, 1002 and 1003 of the 7 executive law, as renumbered by chapter 770 of the laws of 1978 are 8 renumbered article 52 and sections 1050, 1051, 1052 and 1053 and a new 9 article 50 is added to read as follows: 10 ARTICLE 50 11 DIVISION OF REGULATORY REVIEW AND ECONOMIC GROWTH 12 Section 1010. Definitions. 13 1011. Division of regulatory review and economic growth. 14 1012. General functions, powers and duties. 15 1013. Assistance of other state agencies. 16 1014. Regulation review. 17 1014-a. Regulations affecting small business. 18 1015. Division annual recommendations. 19 1016. Implementation of recommendations. 20 1017. Cost of regulation study. 21 § 1010. Definitions. When used in this article, the following terms 22 shall have the following meanings: 23 1. "Commissioner" means the commissioner of the division of regulatory 24 review and economic growth. 25 2. "Division" means the division of regulatory review and economic 26 growth created by this article. 27 3. "Permit" shall mean the whole or part of any state agency permit, 28 license, certificate, approval, registration, charter, or similar form 29 of permission or authority required by law or by state agency rule 30 having the force and effect of law, which is required for a business 31 undertaking, project or activity; provided, however, it shall not mean 32 individual licenses for practicing a profession prescribed in title 33 eight of the education law, filings under the uniform commercial code, 34 or routine licenses and permits for individual privileges, including 35 licenses for operating a motor vehicle and amateur sporting licenses, 36 such as for hunting and fishing. 37 4. "Rule" means a rule as defined in subparagraph (i) of paragraph (a) 38 of subdivision two of section one hundred two of the state administra- 39 tive procedure act, including rules of the workers' compensation board, 40 but does not include the rules of the state comptroller or attorney 41 general, rules regarding jurisdictional classifications pursuant to 42 subdivision one of section six of the civil service law, and the alter- 43 ation of hunting or fishing seasons pursuant to article eleven of the 44 environmental conservation law. 45 5. "State agency" means an agency as defined in subdivision one of 46 section one hundred two of the state administrative procedure act. 47 6. "Small business" shall have the same meaning as set forth in subdi- 48 vision twenty of section three hundred ten of this chapter. 49 § 1011. Division of regulatory review and economic growth. 1. There 50 is hereby created in the executive department the division of regulatory 51 review and economic growth. The head of the division shall be the 52 commissioner of the division who shall be appointed by the governor with 53 the consent of the senate and serve a term of five years.A. 5423 11 1 2. The commissioner must have at least ten years of experience running 2 a for-profit business, with at least three years experience as the chief 3 executive officer, chief operating officer, chief financial officer, 4 president, owner, or any other title used for the highest ranking offi- 5 cer, administrator or manager of a for-profit business. 6 3. The commissioner shall be appointed by the governor within thirty 7 days of the effective date of this section and within thirty days of the 8 expiration of every five year term thereafter, and upon confirmation of 9 the senate shall serve a term of five years effective from the date of 10 confirmation. If the senate rejects an appointment, the governor shall 11 have thirty days from the date of the rejection to appoint another 12 commissioner. 13 4. The commissioner may only be removed from office by a felony 14 conviction or a crime involving a violation of his or her oath of office 15 or by the assent of two-thirds of the members elected to each branch of 16 the legislature voting separately. 17 5. Such commissioner shall receive an annual salary to be fixed by the 18 governor within the amount made available therefor by appropriation and 19 shall be allowed his or her actual and necessary expenses in the 20 performance of his or her duties. 21 6. Upon appointment and until such term expires, the commissioner 22 shall not (a) participate in any partisan political party activities, 23 except that such candidate may register to vote as a member of any poli- 24 tical party and may vote in any party primary for candidates for nomi- 25 nation of the party in which he or she is registered to vote; (b) 26 endorse any candidate or political party; or (c) make contributions to 27 any candidate, political party committee, political action committee or 28 political committee pursuant to subdivision ten of section 14-114 of the 29 election law. 30 7. The commissioner shall direct the work of the division and shall be 31 the chief executive officer of the division. The commissioner may enter 32 into contracts and expend money, and appoint such officers and employees 33 as he or she may deem necessary, prescribe their duties, fix their 34 compensation, and provide for the reimbursement of their expenses, all 35 within amounts made available therefor by appropriation. Such staff 36 shall be management confidential employees with an understanding of 37 private sector business. 38 § 1012. General functions, powers and duties. The division of regula- 39 tory review and economic growth, by and through the commissioner or his 40 or her duly authorized officers and employees, shall have the following 41 functions, powers and duties: 42 1. To provide an oversight, review and analysis of the rules and regu- 43 latory processes of state agencies. 44 2. To make binding recommendations to the governor and legislature on 45 burdensome New York state codes, rules, regulations, regulatory proc- 46 esses, and permit requirements to eliminate or amend them, pursuant to 47 section one thousand fifteen of this article. 48 3. To review the environmental quality review process established 49 under article eight of the environmental conservation law and make 50 recommendations pursuant to subdivision two of this section to establish 51 a more efficient, predictable, timely, and transparent process, and to 52 ensure that the process does not stifle economic growth in New York 53 state. 54 4. To review permit requirements and the need by the state to require 55 such permits. The division shall make recommendations pursuant to subdi- 56 vision two of this section to eliminate, consolidate, simplify, expe-A. 5423 12 1 dite, or otherwise improve permits, permit procedures, and paperwork 2 burdens affecting local governments, school districts or businesses. 3 5. To encourage and facilitate the participation of federal and local 4 government agencies in regulatory review. 5 6. To establish an 800 hotline and website to provide businesses with 6 one contact number to direct questions and to provide assistance to 7 businesses in the state or businesses looking to open or expand in New 8 York state. Such hotline may be used to report regulatory burdens, state 9 agencies overreaching their power, excessive fines and to submit 10 requests for regulatory review by the commissioner. 11 7. To adopt such rules and regulations, procedures, instructions, and 12 forms as are necessary or desirable to carry out the functions, powers, 13 and duties imposed upon the division by this article. 14 8. To publish an annual report, after January first and before Febru- 15 ary first, commencing two thousand twenty, including all recommendations 16 proposed by the division and those recommendations implemented by the 17 state during the prior calendar year. Such report shall include specific 18 details concerning estimated cost savings to the taxpayers from proposed 19 recommendations and actual cost savings to the taxpayers from imple- 20 mented recommendations. 21 § 1013. Assistance of other state agencies. To effectuate the purposes 22 of this article, the commissioner may request and shall be entitled to 23 receive from any state agency, and the same are authorized to provide, 24 such assistance, services, facilities, and data as will enable the divi- 25 sion to carry out its functions, powers and duties. 26 § 1014. Regulation review. 1. In developing a rule, each agency head 27 shall, prior to submitting a notice of proposed or revised rulemaking 28 for publication in the state register pursuant to section two hundred 29 two of the state administrative procedure act, submit to the commission- 30 er, in such form and manner as the commissioner may prescribe, the 31 complete text of the rule, any impact statements which would be required 32 by article two of the state administrative procedure act to propose the 33 rule, and any cost-benefit analysis, risk assessment and/or the results 34 of a negotiated rulemaking or policy dialogue undertaken in conjunction 35 with the development of the rule. 36 2. The commissioner shall review the agency's submission to determine 37 whether it is complete and in accordance with the goals, criteria and 38 requirements of this article and article two of the state administrative 39 procedure act, including whether the rule: 40 (a) is clearly within the authority delegated by law; 41 (b) is consistent with and necessary to achieve a specific legislative 42 intent of promoting economic growth or protecting the health and safety 43 of the public; 44 (c) is consistent with state statutory requirements; 45 (d) does not impose a mandate on local governments, school districts 46 or businesses that is not fully funded, except as specifically required 47 by state statute; 48 (e) is clearly written so that its meaning will be easily understood 49 by those persons affected by it; 50 (f) does not unnecessarily duplicate or exceed existing federal or 51 state statutes or rules; 52 (g) prescribes methodologies or requirements that allow regulated 53 parties flexibility and encourage innovation in meeting the legislative 54 or administrative requirements and objectives underlying the rule;A. 5423 13 1 (h) is based on credible assessments, using recognized standards, of 2 the degree and nature of the risks which may be regulated, including a 3 comparison with everyday risks familiar to the public; 4 (i) gives preference to the least costly, least burdensome regulatory 5 and paperwork requirements needed to accomplish legislative and adminis- 6 trative objectives; 7 (j) is based upon the best scientific, technical and economic informa- 8 tion that can reasonably and affordably be obtained; and 9 (k) if possible and practical, favors market-oriented solutions and 10 performance standards over command-and-control regulation. 11 3. If the commissioner determines that the submission is complete, 12 complies with the provisions of subdivision two of this section, will 13 promote economic growth, or is vital to protect the health and safety of 14 the public, the commissioner shall authorize the agency to submit the 15 rulemaking for publication in the state register pursuant to section two 16 hundred two of the state administrative procedure act. 17 4. If the commissioner determines the submission is not complete or 18 does not comply with the requirements of subdivision two of this 19 section, or is detrimental to economic growth in New York state, or is 20 not vital to protect the health and safety of the public, the commis- 21 sioner may reject the rule or return it to the agency, together with any 22 direction that the agency amend, prepare or revise the rule, any 23 supporting impact statements, cost benefit analysis, risk assessment, 24 and/or undertake a negotiated rulemaking or policy dialogue to develop a 25 rule for proposal. The division may assist the agency in developing a 26 proposal that meets the requirements of subdivision two of this section. 27 5. An agency may consult informally with the division regarding 28 proposed rules, supporting impact statements, and other documents at any 29 time prior to the submission of such materials pursuant to subdivision 30 one of this section. Such informal consultation shall not be binding on 31 the division or the agency. 32 6. No agency head shall submit a notice of proposed or revised rule- 33 making for publication in the state register pursuant to section two 34 hundred two of the state administrative procedure act, without express 35 approval by the commissioner. The commissioner, in his or her sole 36 discretion, may reject any particular rule or category of rules he or 37 she determines is detrimental to economic growth in New York state, or 38 is not vital to protect the health and safety of the public. The divi- 39 sions shall promptly notify the agency of any such rejection. 40 § 1014-a. Regulations affecting small business. 1. Prior to the 41 adoption of any proposed regulation that may have an adverse impact on 42 small businesses, each agency shall prepare an economic impact statement 43 that includes the following: 44 (a) an identification and estimate of the number of the small busi- 45 nesses subject to the proposed regulation; 46 (b) the projected reporting, record keeping and other administrative 47 costs required for compliance with the proposed regulation, including 48 the type of professional skills necessary for preparation of the report 49 or record; 50 (c) a statement of the probable effect on impacted small businesses; 51 and 52 (d) a description of any less intrusive or less costly alternative 53 methods of achieving the purpose of the proposed regulation. 54 2. Prior to the adoption of any proposed regulation, each agency shall 55 prepare a regulatory flexibility analysis with the goal of minimizing 56 adverse impact on small businesses. The agency must consider each of theA. 5423 14 1 following methods of reducing the impact of the proposed regulation on 2 small businesses: 3 (a) the establishment of less stringent compliance or reporting 4 requirements for small businesses; 5 (b) the establishment of less stringent schedules or deadlines for 6 compliance or reporting requirements for small businesses; 7 (c) the consolidation or simplification of compliance or reporting 8 requirements for small businesses; 9 (d) the establishment of performance standards for small businesses to 10 replace design or operational standards required in the proposed regu- 11 lation; and 12 (e) the exemption of small businesses from all or any part of the 13 requirements contained in the proposed regulation. 14 3. (a) Within four years of the effective date of this section, each 15 agency shall review all agency rules existing at the time of enactment 16 to determine whether such rules should be continued without change, or 17 should be amended or rescinded, consistent with the stated objectives of 18 those statutes, to minimize economic impact of the rules on small busi- 19 nesses. 20 (b) Rules adopted after the effective date of this section should be 21 reviewed every five years after the publication of such rules as the 22 final rule to ensure that they minimize economic impact on small busi- 23 nesses in a manner consistent with the stated objectives of applicable 24 statutes. 25 (c) In reviewing rules to minimize economic impact of the rule on 26 small businesses, the agency shall consider the following factors: 27 (i) the continued need for the rule; 28 (ii) the nature of complaints or comments received concerning the rule 29 from the public; 30 (iii) the complexity of the rule; 31 (iv) the extent to which the rule overlaps, duplicates or conflicts 32 with other federal, state and local governmental rules; and 33 (v) the length of time since the rule has been evaluated or the degree 34 to which technology, economic conditions, or other factors have changed 35 in the area affected by the rule. 36 § 1015. Division annual recommendations. On or before January first, 37 two thousand eighteen and annually thereafter, the division shall trans- 38 mit to the governor and the legislature a report containing its recom- 39 mendations, which shall include: 40 1. specific recommendations for repealing or amending New York state 41 codes, rules, regulations, regulatory processes, and permit requirements 42 as it deems necessary to lower costs for local governments, school 43 districts and businesses or promote economic growth; and 44 2. recommended dates by which such actions should occur. 45 § 1016. Implementation of recommendations. 1. Notwithstanding any 46 contrary provision of law, rule or regulation related to the repeal or 47 amendment of any New York state codes, rules, regulations, regulatory 48 processes, and permit requirements identified in the division's recom- 49 mendations, the secretary of state shall take all actions necessary to 50 implement, in a reasonable, cost-efficient manner, the recommendations 51 of the division pursuant to section one thousand fifteen of this arti- 52 cle, including, but not limited to coordination with state agencies, 53 authorities, and other parties as the commissioner deems appropriate. 54 2. The provisions of subdivision one of this section shall not apply: 55 (a) unless the governor has transmitted the division's report under 56 section one thousand fifteen of this article with his or her writtenA. 5423 15 1 approval of the recommendations of the division pursuant to section one 2 thousand fifteen of this article to the secretary of state and transmit- 3 ted a message to the legislature stating his or her approval or 4 rejection of the report within five days of receiving such report; and 5 (b) if a majority of the members of each house of the legislature vote 6 to adopt a concurrent resolution rejecting the recommendations of the 7 division pursuant to section one thousand fifteen of this article in 8 their entirety within sixty days, after receiving a message from the 9 governor under this subdivision. In no event shall the secretary of 10 state begin to implement the recommendations of the division pursuant to 11 section one thousand fifteen of this article prior to the expiration of 12 the legislature's sixty day review period. 13 § 1017. Cost of regulation study. The commissioner is hereby author- 14 ized and directed to prepare or have prepared a comprehensive study to 15 measure and report the cost of regulations to businesses throughout the 16 state of New York. 17 2. Such study shall be completed within eighteen months of the effec- 18 tive date of the chapter of the laws of two thousand seventeen that 19 added this article. 20 § 2. Paragraph (a) of subdivision 6-a of section 202 of the state 21 administrative procedure act, as amended by chapter 171 of the laws of 22 1994, is amended to read as follows: 23 (a) An agency shall transmit a copy of any rule making notice prepared 24 pursuant to this article and approved by the commissioner of the divi- 25 sion of regulatory review and economic growth pursuant to article fifty 26 of the executive law to the governor, the temporary president of the 27 senate, the speaker of the assembly, the minority leader of the senate, 28 the minority leader of the assembly, the administrative regulations 29 review commission and the office of regulatory and management assistance 30 at the time such notice is submitted to the secretary of state for 31 publication in the state register. Such transmittal shall include the 32 complete rule text, regulatory impact statement, regulatory flexibility 33 analysis, rural area flexibility analysis, or revisions thereof, and any 34 other information submitted to the secretary of state pursuant to this 35 article. 36 § 3. Section 86 of the legislative law, as added by chapter 689 of the 37 laws of 1978, is amended to read as follows: 38 § 86. Administrative regulations review commission. There is hereby 39 created an administrative regulations review commission to consist of 40 two members of the senate to be appointed by the temporary president of 41 the senate, two members of the assembly to be appointed by the speaker 42 of the assembly, [one member] two members of the senate to be appointed 43 by the minority leader of the senate and [one member] two members of the 44 assembly to be appointed by the minority leader of the assembly. The 45 temporary president of the senate and the speaker of the assembly shall 46 each appoint a co-chairman from among the commission membership. Any 47 vacancies shall be filled in the same manner as the original appoint- 48 ment. Such appointees shall serve at the pleasure of the respective 49 legislative member making such appointment. 50 § 4. Section 87 of the legislative law, as added by chapter 689 of the 51 laws of 1978, is amended to read as follows: 52 § 87. Powers and duties. 1. The commission shall exercise continuous 53 oversight of the process of rule making and examine rules, as defined in 54 subdivision two of section one hundred two of the state administrative 55 procedure act, adopted or proposed by each agency with respect to (i) 56 statutory authority, (ii) compliance with legislative intent, (iii)A. 5423 16 1 impact on the economy and on the government operations of the state and 2 its local governments, and (iv) impact on affected parties; and, in 3 furtherance of such duties, may examine other issues it deems appropri- 4 ate. For purpose of this article, the term agency shall mean any depart- 5 ment, board, bureau, commission, division, office, council, committee or 6 officer of the state or a public benefit corporation or public authority 7 at least one of whose members is appointed by the governor. 8 2. The commission shall review any legislation requiring a commission- 9 er or agency as defined by subdivision one of section one hundred two of 10 the state administrative procedure act, to promulgate any codes, rules 11 and regulations necessary for the implementation and make recommenda- 12 tions to the members of the legislature. Such recommendations should 13 include the commission's approval if the legislation is deemed necessary 14 to protect the health and safety of the public or the commission's 15 disapproval if such legislation is deemed detrimental to economic growth 16 in New York state, or is not vital to protect the health and safety of 17 the public. 18 3. The commission shall review New York state laws that result in the 19 promulgation of codes, rules or regulations by a commissioner or agency 20 as defined by subdivision one of section one hundred two of the state 21 administrative procedure act, or any laws the commission deems a regula- 22 tory burden on local governments, school districts or businesses and 23 make recommendations to the members of the legislature. Such recommenda- 24 tions should include the commission's request for the repeal of laws it 25 deems increase costs for local governments, school districts or busi- 26 nesses or are detrimental to economic growth in New York state, or are 27 not vital to protect the health and safety of the public. 28 4. The commission may employ such staff and retain such consultants 29 and expert services as may be necessary and fix their compensation and 30 expenses within the amounts appropriated therefor. Employment by the 31 commission shall be deemed to be employment by the legislature for all 32 purposes. 33 [3] 5. The commission shall have the power, subject to the provisions 34 of section seventy-three of the civil rights law, to hold hearings, 35 subpoena witnesses, administer oaths, take testimony and compel the 36 production of books, papers, documents and other evidence in furtherance 37 of its duties; provided, however, that no subpoena shall issue except 38 upon the affirmative vote of a majority of the whole membership of the 39 commission. The commission may request and shall receive from all agen- 40 cies such assistance and data as will enable it properly to consummate 41 any such examination, and review. 42 § 5. Section 88 of the legislative law, as amended by chapter 850 of 43 the laws of 1990, is amended to read as follows: 44 § 88. Reports. The commission shall, [from time to time] annually, 45 report its findings and recommendations to the governor, the temporary 46 president of the senate and the speaker of the assembly, the minority 47 leader of the senate, the minority leader of the assembly, and to the 48 members of the legislature, and may at any time make recommendations to 49 the division of regulatory review and economic growth and an agency 50 based upon its review of that agency's rule making process, or any of 51 the agency's proposed, revised or adopted rules. 52 § 6. The legislative law is amended by adding a new section 88-a to 53 read as follows: 54 § 88-a. Regulatory Wednesdays. 1. Every Wednesday, which is a sched- 55 uled session day for the legislature in every week beginning with a 56 scheduled session day on Monday, shall be deemed regulatory Wednesday.A. 5423 17 1 The commission shall be required to meet on every regulatory Wednesday 2 to perform its powers and duties pursuant to section eighty-seven of 3 this article. 4 2. On every regulatory Wednesday, the senate and assembly shall take 5 up any bills on any order of third reading that are before each respec- 6 tive house for final disposition, that have gained the approval of the 7 commission prior to taking up any other bill on any order of third read- 8 ing, unless such action is waived, without debate, upon a majority vote 9 of the members present. 10 § 7. Severability clause. If any clause, sentence, paragraph, subdivi- 11 sion, section or part of this act shall be adjudged by any court of 12 competent jurisdiction to be invalid, such judgment shall not affect, 13 impair, or invalidate the remainder thereof, but shall be confined in 14 its operation to the clause, sentence, paragraph, subdivision, section 15 or part thereof directly involved in the controversy in which such judg- 16 ment shall have been rendered. It is hereby declared to be the intent of 17 the legislature that this act would have been enacted even if such 18 invalid provisions had not been included herein. 19 § 8. This act shall take effect on the one hundred twentieth day after 20 it shall have become a law and shall apply to rules and revised rules to 21 be submitted for publication in the state register on and after such 22 date. 23 PART H 24 Section 1. The commissioner of the department of economic development 25 shall develop and implement a "regulatory amnesty" period to allow for 26 small businesses to remedy rules or regulations violations before any 27 violations or sanctions are levied. Such regulatory amnesty period must 28 be at least six months. If a small business remedies the violation with- 29 in the time period established by the commissioner, such business shall 30 not be subjected to fines or penalties. 31 § 2. This act shall take effect immediately. 32 PART I 33 Section 1. The legislative law is amended by adding a new section 51-a 34 to read as follows: 35 § 51-a. Moratorium on unfunded mandates. 1. Definitions. As used in 36 this section, the following terms shall have the following meanings: 37 (a) "Local government" means a county, city, town, village, school 38 district, or special district. 39 (b) "Small business" means any business with less than one hundred 40 employees. 41 (c) "Net additional cost" means the cost or costs incurred or antic- 42 ipated to be incurred within a one year period by a local government in 43 performing or administering any program, project, or activity after 44 subtracting therefrom any revenues received or receivable by such local 45 government in relation to such program, project, or activity, including 46 but not limited to: (i) fees charged to the recipients of such program, 47 project, or activity; (ii) state or federal funds received for such 48 program, project, or activity; and (iii) an offsetting savings resulting 49 from the diminution or elimination of any other program, project, or 50 activity that state law requires such local government to provide or 51 undertake.A. 5423 18 1 (d) "Unfunded mandate" means: (i) any state law that requires a local 2 government to provide or undertake any new program, project or activity 3 that results in an annual net additional cost to any local government in 4 excess of ten thousand dollars or an aggregate annual net additional 5 cost to all local governments within the state in excess of one million 6 dollars; or (ii) any state law that requires a local government to 7 provide a higher level of service or funding for an existing program, 8 project or activity that results in an annual net additional cost to any 9 local government in excess of ten thousand dollars or an aggregate annu- 10 al net additional cost to all local governments within the state in 11 excess of one million dollars; or (iii) any state law that requires a 12 local government to grant any new property tax exemption or that broad- 13 ens the eligibility or increases the dollar amount of any existing prop- 14 erty tax exemption, on property that otherwise would have generated 15 revenue under the current property tax rate of such local government in 16 excess of ten thousand dollars in any local government or in excess of 17 one million dollars statewide; or (iv) any state law with a legal 18 requirement that would otherwise likely have the effect of raising prop- 19 erty taxes in excess of ten thousand dollars in any local government or 20 in excess of one million dollars statewide; or (v) any state law that 21 requires a small business to undertake any new program, project or 22 activity that results in an annual net additional cost to the business. 23 2. Moratorium on unfunded mandates. Notwithstanding any other 24 provision of law, no unfunded mandates shall be enacted. 25 3. Exemptions. (a) A state law shall not be considered an unfunded 26 mandate where such law: (i) is required by a court order or judgment; or 27 (ii) is provided at the option of the local government under a law that 28 is permissive rather than mandatory; or (iii) results from the passage 29 of a home rule message whereby a local government requests authority to 30 implement the program or service specified in the statute, and the stat- 31 ute imposes costs only upon that local government which requests the 32 authority to impose the program or service; or (iv) is required by stat- 33 ute or executive order that implements a federal law or regulation and 34 results from costs mandated by the federal government to be borne at the 35 local level, unless the statute or executive order results in costs 36 which exceed the costs mandated by the federal government; or (v) is 37 imposed on both government and non-government entities in the same or 38 substantially similar circumstances; or (vi) repeals or revises a state 39 law to ease an existing requirement that a local government provide or 40 undertake a program, project, or activity, or reapportions the costs of 41 activities between local governments; or (vii) is necessary to protect 42 against an immediate threat to public health or safety. 43 (b) The effective date of any act establishing a mandate shall provide 44 a reasonable time for the state and any local government to plan imple- 45 mentation thereof and shall be consistent with the availability of 46 required funds. 47 § 2. Section 51 of the legislative law, as added by chapter 985 of the 48 laws of 1983, is amended to read as follows: 49 § 51. Fiscal [impact] notes on bills affecting political subdivisions. 50 1. For the purpose of this section, the term "political subdivision" 51 means any county, city, town, village, special district or school 52 district. 53 2. [The legislature shall by concurrent resolution of the senate and54assembly prescribe rules requiring fiscal notes to accompany, on a sepa-55rate form, bills and amendments to bills, except as otherwise prescribed56by such rules, which] A bill that would substantially affect the reven-A. 5423 19 1 ues or expenses, or both, of any political subdivision shall contain a 2 fiscal note stating the estimated annual cost to the political subdivi- 3 sion affected and the source of such estimate. 4 3. Fiscal notes shall not, however, be required for bills: (a) subject 5 to the provisions of section fifty of this chapter, or (b) accompanied 6 by special home rule requests submitted by political subdivisions, or 7 (c) which provide discretionary authority to political subdivisions, or 8 (d) submitted pursuant to section twenty-four of the state finance law. 9 4. If the estimate or estimates contained in a fiscal note are inaccu- 10 rate, such inaccuracies shall not affect, impair or invalidate such 11 bill. 12 § 3. This act shall take effect immediately, provided, however, that 13 section one of this act shall only apply to laws enacted after such 14 effective date. 15 § 3. Severability clause. If any clause, sentence, paragraph, subdivi- 16 sion, section or part of this act shall be adjudged by any court of 17 competent jurisdiction to be invalid, such judgement shall not affect, 18 impair, or invalidate the remainder thereof, but shall be confined in 19 its operation to the clause, sentence, paragraph, subdivision, section 20 or part thereof directly involved in the controversy in which such judg- 21 ment shall have been rendered. It is hereby declared to be the intent of 22 the legislature that this act would have been enacted even if such 23 invalid provisions had not been included herein. 24 § 4. This act shall take effect immediately provided, however, that 25 the applicable effective date of Parts A through I of this act shall be 26 as specifically set forth in the last section of such Parts.