STATE OF NEW YORK ________________________________________________________________________ 2469--A 2015-2016 Regular Sessions IN SENATE January 23, 2015 ___________ Introduced by Sens. RITCHIE, CARLUCCI, FUNKE, PANEPINTO -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to farm savings accounts The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The tax law is amended by adding a new section 42 to read 2 as follows: 3 § 42. Farm savings accounts. 1. Definitions. (a) Qualified farmer. For 4 purposes of this section, the term "qualified farmer" means, with 5 respect to any taxable year, any individual who, during such year, was 6 engaged in the trade or business of farming. 7 (b) Farm savings account. For purposes of this section, the term "farm 8 savings account" means a trust created or organized in the United States 9 as a farm savings account exclusively for the purpose of making quali- 10 fied distributions for purposes of farm sustainability, but only if the 11 written governing instrument creating the trust meets the following 12 requirements: 13 (i) No contribution will be accepted unless it is in cash. 14 (ii) The trustee is a bank, credit union or other appropriate institu- 15 tion that demonstrates administration of the trust in a manner that is 16 consistent with the requirements of this section. 17 (iii) The assets of the trust will not be commingled with other prop- 18 erty except in a common trust fund or common investment fund. 19 (iv) The interest of an individual in the balance in his or her 20 account is nonforfeitable. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07647-02-6