S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7738
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 17, 2019
                                ___________
 
 Introduced by M. of A. KIM -- read once and referred to the Committee on
   Governmental Operations
 
 AN  ACT to amend the executive law, in relation to cost benefit analysis
   of tax expenditures
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Subdivision  1  of  section  181  of the executive law is
 amended by adding three new paragraphs (c),  (d)  and  (e)  to  read  as
 follows:
   (C)  "COST  BENEFIT ANALYSIS" SHALL MEAN, FOR TAX EXPENDITURES CLAIMED
 BY TAXPAYERS SUBJECT TO ARTICLES NINE (OTHER THAN  SECTION  ONE  HUNDRED
 EIGHTY),  NINE-A, THIRTEEN-A, TWENTY-EIGHT, THIRTY-TWO, AND THIRTY-THREE
 OF THE TAX LAW, A METHOD OF DETERMINING A TAX EXPENDITURE'S  BENEFIT  TO
 NEW  YORK  STATE  BASED ON THE TAX EXPENDITURE RECIPIENT'S PROJECTED JOB
 CREATION OR JOB RETENTION AND/OR INVESTMENT  IN  THE  STATE  VERSUS  THE
 TOTAL  AMOUNT  OF  REVENUES  FOREGONE UNDER THE TAX EXPENDITURE. FOR TAX
 EXPENDITURES CLAIMED BY TAXPAYERS SUBJECT  TO  ARTICLES  TWENTY-TWO  AND
 THIRTY-ONE  OF  THE TAX LAW, "COST BENEFIT ANALYSIS" SHALL MEAN A METHOD
 OF DETERMINING A TAX EXPENDITURE'S BENEFIT TO NEW YORK  STATE  BASED  ON
 THE AMOUNT OF TAX RELIEF A TAX EXPENDITURE PROVIDES TO PARTICULAR CLASS-
 ES OF PERSONS OR ENTITIES.
   (D) "COST BENEFIT ANALYSIS RATIO" SHALL MEAN THE RATIO CALCULATED BY A
 COST BENEFIT ANALYSIS OF A TAX EXPENDITURE.
   (E)  "COST  BENEFIT ANALYSIS TARGET RATIO" SHALL MEAN THE COST BENEFIT
 ANALYSIS RATIO LEVEL THAT THE GOVERNOR DEEMS TO REFLECT A  TAX  EXPENDI-
 TURE'S  ADEQUATE  LEVEL  OF  BENEFIT  TO NEW YORK STATE WHEN TAKING INTO
 CONSIDERATION THE AMOUNT OF REVENUES THE STATE FOREGOES BECAUSE OF A TAX
 EXPENDITURE AND THE  AMOUNT  OF  TAX  RELIEF  OR  JOB  CREATION  OR  JOB
 RETENTION  OR  INVESTMENT  IN  THE  STATE PROVIDED OR SUPPORT BY THE TAX
 EXPENDITURE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08609-01-9
              

 A. 7738                             2
 
   § 2. Paragraphs (f) and (g) of subdivision 2 of  section  181  of  the
 executive  law,  as added by chapter 23 of the laws of 1990, are amended
 and five new paragraphs (h), (i), (j), (k) and (l) are added to read  as
 follows:
   (f)  comment, if any, on the effectiveness and efficiency of other tax
 expenditures; [and]
   (g) general cautionary and advisory notes  concerning  limitations  of
 data,  estimation procedures, sampling errors and imputed values, promi-
 nently displayed[.]; AND
   (H) A COST BENEFIT ANALYSIS OF EACH TAX EXPENDITURE;
   (I) A COMPARISON BETWEEN EACH TAX EXPENDITURE'S COST BENEFIT  ANALYSIS
 RATIO  AND THE TAX EXPENDITURE'S TARGET RATIO, ALONG WITH AN EXPLANATION
 FOR ANY DIFFERENCE BETWEEN THE TWO RATIOS;
   (J) AN ANALYSIS OF  WHETHER  EACH  TAX  EXPENDITURE  HAS  SUCCESSFULLY
 ACHIEVED  THE  PURPOSE  FOR  WHICH  THE  TAX EXPENDITURE WAS ENACTED AND
 CURRENTLY SERVES, INCLUDING AN ANALYSIS OF THE PERSONS OR ENTITIES  THAT
 ARE BENEFITED BY THE TAX EXPENDITURE;
   (K)  AN  EXPLANATION  OF  THE COST BENEFIT ANALYSIS FORMULA APPLIED TO
 EACH TAX EXPENDITURE; AND
   (L) AN EXPLANATION OF EACH TAX EXPENDITURE'S TARGET RATIO, INCLUDING A
 DESCRIPTION OF WHY THE RATIO REFLECTS ADEQUATE LEVELS OF TAX  RELIEF  OR
 JOB CREATION OR JOB RETENTION OR INVESTMENT IN THE STATE.
   §  3.  Subdivision 3 of section 181 of the executive law is renumbered
 subdivision 5 and two new subdivisions 3 and 4  are  added  to  read  as
 follows:
   3.  COST BENEFIT ANALYSIS FORMULA. THE GOVERNOR SHALL DEVELOP FOR EACH
 TAX EXPENDITURE A COST BENEFIT ANALYSIS FORMULA FOR DETERMINING THE COST
 BENEFIT ANALYSIS RATIO.
   4. COST BENEFIT ANALYSIS TARGET RATIO. THE  GOVERNOR  SHALL  DETERMINE
 FOR EACH TAX EXPENDITURE A COST BENEFIT ANALYSIS TARGET RATIO.
   §  4. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.