S T A T E   O F   N E W   Y O R K
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                                 8628--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            December 23, 2015
                               ___________

Introduced  by  M. of A. CUSICK, TITONE -- read once and referred to the
  Committee on Environmental Conservation -- recommitted to the  Commit-
  tee  on Environmental Conservation in accordance with Assembly Rule 3,
  sec. 2 -- committee discharged, bill  amended,  ordered  reprinted  as
  amended and recommitted to said committee

AN  ACT  to  amend  the  navigation law, in relation to license fees per
  barrel of petroleum

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

  Section  1. Paragraph (a) of subdivision 4 of section 174 of the navi-
gation law, as amended by section 1 of part X of chapter 58 of the  laws
of 2015, is amended to read as follows:
  (a) The license fee shall be nine and one-half cents per barrel trans-
ferred, UNLESS THE MAJOR FACILITY IS LOCATED WITHIN ONE MILE OF A FACIL-
ITY  IN  AN ADJOINING STATE, WHICH IF SUCH FACILITY IN ANOTHER STATE WAS
LOCATED IN THIS STATE WOULD BE A MAJOR FACILITY, THEN SUCH FEE SHALL  BE
ONE  CENT PER BARREL TRANSFERRED, provided, however, that the fee on any
barrel, including any products derived therefrom,  subject  to  multiple
transfer,  shall  be  imposed  only once at the point of first transfer.
Provided further, the license fee for major facilities that (i) transfer
barrels for their own use, and (ii) do not sell or transfer the  product
subject  to  such license fee, shall be eight cents. In each fiscal year
following any year in which the balance of the  account  established  by
paragraph  (a) of subdivision two of section one hundred seventy-nine of
this article equals or exceeds forty million  dollars,  no  license  fee
shall  be imposed unless (a) the current balance in such account is less
than thirty-five million dollars or  (b)  pending  claims  against  such
account exceed fifty percent of the existing balance of such account. In
the  event  of  either such occurrence and upon certification thereof by
the state comptroller, the administrator shall within ten  days  of  the
date  of  such  certification reimpose the license fee, which shall take

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13195-03-6
              

A. 8628--A                          2

effect on the first day of the month following such relevy. The rate may
be set at less than nine and one-half cents per  barrel  transferred  if
the  administrator  determines  that  the revenue produced by such lower
rate  shall be sufficient to pay outstanding claims against such account
within one year of such imposition  of  the  license  fee.  Should  such
account  exceed  forty  million  dollars,  as  a result of interest, the
administrator and the commissioner of environmental  conservation  shall
report  to  the  legislature and the governor concerning the options for
the use of such interest. The fee established by  this  paragraph  shall
not  be  imposed  upon  any  barrel which is transferred to a land based
facility but thereafter exported from this state  for  use  outside  the
state  and  is  shipped  to  facilities  outside the state regardless of
whether the delivery or sale of such petroleum occurs in this state.
  S 2. Subdivision 4 of section 174 of the navigation law is amended  by
adding a new paragraph (e) to read as follows:
  (E)  NOTWITHSTANDING  PARAGRAPH (D) OF THIS SUBDIVISION, THE SURCHARGE
ESTABLISHED BY PARAGRAPH (B)  OF  THIS  SUBDIVISION  SHALL  BE  ONE  AND
ONE-HALF  CENTS  PER  BARREL  FOR  ANY BARREL THAT IS TRANSFERRED INTO A
MAJOR FACILITY LOCATED WITHIN ONE MILE OF A  FACILITY  IN  AN  ADJOINING
STATE, WHICH IF SUCH FACILITY IN ANOTHER STATE WAS LOCATED IN THIS STATE
WOULD  BE  A MAJOR FACILITY, AND THEREAFTER EXPORTED FROM THIS STATE FOR
USE OUTSIDE THE STATE AS DESCRIBED BY PARAGRAPH (A) OF THIS SUBDIVISION.
  S 3. This act shall take effect immediately.