S T A T E O F N E W Y O R K
________________________________________________________________________
2640
2017-2018 Regular Sessions
I N S E N A T E
January 13, 2017
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Introduced by Sens. LANZA, SAVINO -- read twice and ordered printed, and
when printed to be committed to the Committee on Cultural Affairs,
Tourism, Parks and Recreation
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02243-01-7
S. 2640 2
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.
§ 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.
§ 3. This act shall take effect immediately.
