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

                                 6233--A

                            I N  S E N A T E

                               (PREFILED)

                             January 6, 2016
                               ___________

Introduced by Sens. LANZA, SAVINO -- read twice and ordered printed, and
  when printed to be committed to the Committee on Environmental Conser-
  vation  --  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
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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD13195-02-6

S. 6233--A                          2

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.