S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6203--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 22, 2019
                                ___________
 
 Introduced  by  Sens.  SANDERS,  BIAGGI, HOYLMAN, JACKSON, MYRIE, RAMOS,
   RIVERA, SALAZAR -- read twice and ordered printed, and when printed to
   be committed to the Committee on Budget and Revenue -- recommitted  to
   the  Committee on Budget and Revenue 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 state finance law, in relation to the repeal of the
   rebate for stock transfer tax paid and the funds of the stock transfer
   tax fund and the dedicated infrastructure investment  fund;  to  amend
   the  environmental  conservation  law, in relation to establishing the
   safe water infrastructure action program for  the  purpose  of  making
   payments  toward  the replacement and rehabilitation of existing local
   municipally-owned and funded drinking water, storm water and  sanitary
   sewer  systems;  to amend the tax law, in relation to taxes imposed in
   certain transactions; to repeal section 280-a of the tax law  relating
   to  the  rebate for stock transfer tax paid; to repeal section 92-i of
   the state finance law relating to the stock transfer  incentive  fund;
   and  to  repeal  certain  provisions of the administrative code of the
   city of New York relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 280-a of the tax law is REPEALED.
   § 2. Section 92-i of the state finance law is REPEALED.
   §  3. Section 92-b of the state finance law, as added by chapter 91 of
 the laws of 1965, subdivision 3 as amended by chapter 878 of the laws of
 1977, subdivision 4 as amended by chapter  724  of  the  laws  of  1979,
 subdivision  5  as added and subdivision 6 as renumbered by section 2 of
 chapter 3 of the laws of 1966, subdivision 7 as added by section  10  of
 part  SS1  of  chapter 57 of the laws of 2008 and such section as renum-
 bered by section 1 of chapter 3 of the laws of 1966, is amended to  read
 as follows:

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

                                                            LBD09894-08-0

 S. 6203--A                          2
 
   § 92-b. Stock transfer tax fund. 1. There is hereby established in the
 custody  of  the commissioner of taxation and finance a special fund, to
 be known as the stock transfer tax fund.
   2.  Such  fund  shall  consist  of the revenues derived from the stock
 transfer tax imposed by article twelve of the  tax  law  and  all  other
 moneys  credited  or  transferred  thereto from any other fund or source
 pursuant to law.
   3. The moneys received from such tax and other sources in such  fund[,
 after  deducting  the  amount  the  commissioner of taxation and finance
 shall determine to be necessary for] SHALL BE USED TO COVER THE  reason-
 able  costs of the state tax commission in administering, collecting and
 distributing [such] THE STOCK TRANSFER tax, commencing with  the  fiscal
 year  ending  March  thirty-first,  [nineteen hundred seventy-seven] TWO
 THOUSAND TWENTY-TWO, [shall be appropriated to (i) the municipal assist-
 ance corporation for the city of New  York  created  pursuant  to  title
 three  of  article  ten of the public authorities law in order to enable
 such corporation to fulfill the terms of any agreements  made  with  the
 holders  of  its notes and bonds and to carry out its corporate purposes
 including the maintenance of the capital reserve fund and  (ii)  to  the
 extent  such  moneys are not required by such corporation as provided in
 subdivision seven of section ninety-two-d of  this  chapter  and,  after
 deducting  the  amount such commissioner shall determine to be necessary
 for reasonable costs of the state tax commission  in  administering  and
 making  distributions  in  accordance with the provisions of section two
 hundred eighty-a of the tax law from the stock transfer incentive  fund,
 to  the  stock transfer incentive fund created pursuant to section nine-
 ty-two-i of this chapter to enable rebates to be  made  from  such  fund
 under  the provisions of section two hundred eighty-a of the tax law and
 (iii) to the extent such moneys are not required by such fund, as certi-
 fied by the commissioner of taxation and finance, the balance  shall  be
 appropriated  to  the city of New York, for the support of local govern-
 ment.] AND THE REMAINDER SHALL BE DEPOSITED INTO THE STATE GENERAL FUND.
 COMMENCING WITH THE FISCAL YEAR ENDING MARCH THIRTY-FIRST, TWO  THOUSAND
 TWENTY-THREE,  SUCH  REMAINDER  SHALL  BE  DEPOSITED  INTO THE FOLLOWING
 FUNDS:
   (I) TWENTY-FIVE PERCENT SHALL BE DIRECTED TO THE  METROPOLITAN  TRANS-
 PORTATION  AUTHORITY  FINANCIAL  ASSISTANCE FUND ESTABLISHED PURSUANT TO
 SECTION NINETY-TWO-FF OF THIS ARTICLE;
   (II) TEN PERCENT SHALL BE DIRECTED TO  THE  DIVISION  OF  HOUSING  AND
 COMMUNITY RENEWAL FOR THE PURPOSE OF CAPITAL PROJECTS AND OTHER IMPROVE-
 MENTS TO ADDRESS ISSUES RELATING TO CONDITIONS OF GOVERNANCE AND HABITA-
 BILITY,  INCLUDING BUT NOT LIMITED TO, HEATING, MOLD, OR LEAD, AND OTHER
 SUCH CONDITIONS AFFECTING THE HEALTH AND SAFETY OF  TENANTS  AT  HOUSING
 DEVELOPMENTS OWNED OR OPERATED BY THE NEW YORK CITY HOUSING AUTHORITY;
   (III)  FIFTEEN  PERCENT  SHALL  BE  DIRECTED TO THE HIGHWAY AND BRIDGE
 CAPITAL ACCOUNT IN THE DEDICATED HIGHWAY AND BRIDGE  TRUST  FUND  ESTAB-
 LISHED PURSUANT TO SECTION EIGHTY-NINE-B OF THIS ARTICLE;
   (IV) TEN PERCENT SHALL BE DIRECTED TO THE DEDICATED HIGHWAY AND BRIDGE
 TRUST  FUND  ESTABLISHED PURSUANT TO SECTION EIGHTY-NINE-B OF THIS ARTI-
 CLE, TO BE DIRECTED TOWARDS THE INFRASTRUCTURE, MAINTENANCE AND DEVELOP-
 MENT OF RAIL LINES FOR AMTRAK IN THE NORTHEAST CORRIDOR;
   (V) FIVE PERCENT SHALL BE DIRECTED TO THE LOCAL INFRASTRUCTURE ACCOUNT
 OF THE GENERAL FUND ESTABLISHED PURSUANT TO SECTION SEVENTY-TWO OF  THIS
 ARTICLE  TO  BE  DIRECTED  TO  THE CONSOLIDATED LOCAL STREET AND HIGHWAY
 IMPROVEMENT PROGRAM (CHIPS);

 S. 6203--A                          3
 
   (VI) FIVE PERCENT  SHALL  BE  DIRECTED  TO  THE  LOCAL  INFRASTRUCTURE
 ACCOUNT  OF  THE  GENERAL  FUND  TO  BE  DEDICATED TO THE SAFE WATER AND
 INFRASTRUCTURE ACTION PROGRAM AS ESTABLISHED BY SECTION  3-0323  OF  THE
 ENVIRONMENTAL CONSERVATION LAW;
   (VII) FIVE PERCENT SHALL BE DIRECTED TO THE MUNICIPAL ASSISTANCE STATE
 AID FUND ESTABLISHED PURSUANT TO SECTION NINETY-TWO-E OF THIS ARTICLE;
   (VIII)  FIVE PERCENT SHALL BE DIRECTED TO THE DEDICATED MASS TRANSPOR-
 TATION TRUST FUND TO THE CREDIT OF THE NON-MTA ACCOUNT  FOR  PAYMENT  TO
 DOWNSTATE  TRANSIT  SYSTEMS OTHER THAN THOSE TRANSIT SYSTEMS OPERATED BY
 THE METROPOLITAN TRANSPORTATION AUTHORITY;
   (IX) FIVE PERCENT SHALL BE DIRECTED TO THE DEDICATED MASS  TRANSPORTA-
 TION  TRUST  FUND  TO  THE  CREDIT OF THE NON-MTA ACCOUNT FOR PAYMENT TO
 UPSTATE TRANSIT SYSTEMS; AND
   (X) FIFTEEN PERCENT SHALL BE  DIRECTED  TO  THE  ENERGY  RESEARCH  AND
 DEVELOPMENT  OPERATING  FUND PURSUANT TO THE PROVISIONS OF SECTION EIGH-
 TEEN HUNDRED FIFTY-NINE OF THE PUBLIC AUTHORITIES LAW, TO BE DIRECTED TO
 THE CLEAN ENERGY FUND AND  SHALL  BE  DIVIDED  EQUALLY  AMONG  THE  FOUR
 INVESTMENT PORTFOLIOS THAT MAKE UP SUCH FUND.
   4.  [After  the deduction of such costs of the state tax commission in
 administering, collecting and distributing such tax, the balances in the
 stock transfer tax fund so appropriated shall be distributed and paid on
 the last business day of September, December, March and  June  into  the
 special account established for the municipal assistance corporation for
 the  city  of  New York in the municipal assistance tax fund established
 pursuant to subdivision one of section  ninety-two-d  of  this  chapter,
 unless  and to the extent the balances in such fund on each such payment
 day are not required by such corporation as provided in said subdivision
 seven of said section ninety-two-d in which  case  the  balance  not  so
 required,  if  any,  after  the deduction of such costs of the state tax
 commission in administering and making distributions in accordance  with
 the  provisions  of section two hundred eighty-a of the tax law from the
 stock transfer incentive fund shall be distributed and paid to the stock
 transfer incentive fund in the custody of the commissioner  of  taxation
 and finance established pursuant to section ninety-two-i of this chapter
 and unless and to the extent that the balances in the stock transfer tax
 fund  on  each  such  payment day are not required by the stock transfer
 incentive fund as provided in such section ninety-two-i of this  chapter
 in  which case the balance not so required, if any, shall be distributed
 and paid to the chief fiscal officer of the city of New York to be  paid
 into  the treasury of the city to the credit of the general fund or paid
 by the commissioner of taxation and finance to  such  other  account  or
 fund  as  may  be  designated in writing by such chief fiscal officer at
 least ten business days prior to such last day and on each such day, the
 commissioner of taxation and finance shall certify  to  the  comptroller
 the  amount deducted for administering, collecting and distributing such
 tax during such quarterly period and shall  pay  such  amount  into  the
 general  fund  of the state treasury to the credit of the state purposes
 fund therein. In no event shall any amount (other than the amount to  be
 deducted  for  administering,  collecting  and distributing such tax) be
 distributed or paid from the stock transfer tax fund to any person other
 than the municipal assistance corporation  for  the  city  of  New  York
 unless  and  until  the aggregate of all payments certified to the comp-
 troller as required by such corporation in  order  to  comply  with  its
 agreements  with the holders of its notes and bonds and to carry out its
 corporate purposes, including the maintenance  of  the  capital  reserve
 fund,  which  remain  unappropriated or unpaid to such corporation shall

 S. 6203--A                          4

 have been appropriated to such corporation and shall have been  paid  in
 full  provided,  however,  that no person, including such corporation or
 the holders of its notes or bonds shall have any lien on  such  tax  and
 such  agreements  shall  be executory only to the extent of the balances
 available to the state in such fund. If the balances in  such  fund  are
 not  required  by  such  corporation  pursuant to the provisions of this
 subdivision, on each such last  business  day  of  September,  December,
 March  and  June, the commissioner of taxation and finance shall certify
 to the comptroller the amount  deducted  for  administering  and  making
 distributions  in  accordance with the provisions of section two hundred
 eighty-a of the tax law from the stock transfer  incentive  fund  during
 such quarterly period and he shall pay such amount into the general fund
 of  the state treasury to the credit of the state purposes fund therein.
 To the extent such moneys are  not  required  by  such  corporation,  as
 provided  in  subdivision seven of section ninety-two-d of this chapter,
 no amount thereof (other than such amount to be deducted for administer-
 ing, collecting and distributing such tax and such costs in  administer-
 ing  and  making  distributions  in  accordance  with  the provisions of
 section two hundred eighty-a of the tax  law  from  the  stock  transfer
 incentive fund) shall be distributed or paid from the stock transfer tax
 fund  other than to such stock transfer incentive fund in the custody of
 the commissioner of taxation and finance unless and until the  aggregate
 of all payments certified to the comptroller by such commissioner pursu-
 ant  to  the  provisions  of such incentive fund as necessary to provide
 payments on account  of  rebates  authorized  pursuant  to  section  two
 hundred eighty-a of the tax law which remain unappropriated or unpaid to
 such  fund shall have been appropriated to such fund and shall have been
 paid in full provided, however, that no person, including  any  taxpayer
 under  article twelve of the tax law or any member or dealer referred to
 in subdivisions two-a and six of section two hundred  eighty-a  of  such
 law,  shall  have  any lien on this fund or the stock transfer incentive
 fund.
   5. In no fiscal year shall the total amount paid from the fund  exceed
 the  total  collections  during such fiscal year from the stock transfer
 tax pursuant to the provisions of article twelve of the tax law  and  as
 deposited to the credit of the stock transfer tax fund.
   6.] All payments from the stock transfer tax fund shall be made on the
 audit and warrant of the comptroller on vouchers approved by the commis-
 sioner of taxation and finance.
   [7.  When  all  the notes and bonds of the municipal assistance corpo-
 ration for the city of New York have been  fully  paid  and  discharged,
 together  with  interest  thereon and interest on unpaid installments of
 interest, and the chairman of the corporation makes  the  final  certif-
 ication  required  by  subdivision seven of section ninety-two-d of this
 article, the comptroller must notify the commissioner  of  taxation  and
 finance  that  all  remaining  funds held in the stock transfer tax fund
 must be released to the stock transfer incentive fund.  From  that  time
 forward,  all  funds previously deposited in the stock transfer tax fund
 pursuant to subdivision two of this section will be  deposited  directly
 into  the stock transfer incentive fund pursuant to all the rules, regu-
 lations or instructions  that  the  commissioner  may  prescribe,  after
 deducting  the  amount  the  commissioner determines to be necessary for
 reasonable costs of the  department  in  administering,  collecting  and
 distributing  the tax imposed by article twelve of the tax law. Notwith-
 standing any other provisions of  this  article,  to  the  extent  those
 moneys  are  not  required  by the stock transfer incentive fund for the

 S. 6203--A                          5

 purpose of administering and making distributions in accordance with the
 provisions of section two hundred eighty-a of the tax law, as  certified
 by  the commissioner of taxation and finance, the balance will be appro-
 priated to the city of New York for the support of local government.]
   §  4.  Paragraph  (c)  of  subdivision  1 of section 93-b of the state
 finance law, as added by section 1 of part H of chapter 60 of  the  laws
 of 2015, is amended to read as follows:
   (c) Sources of funds. The sources of funds shall consist of all moneys
 collected  therefor,  or  moneys  credited,  appropriated or transferred
 thereto from any other fund or source  pursuant  to  law  or  any  other
 moneys  made  available  for the purposes of the fund, INCLUDING BUT NOT
 LIMITED TO FUNDS TRANSFERRED FROM THE STOCK TRANSFER TAX  FUND  PURSUANT
 TO  SUBDIVISION  THREE OF SECTION NINETY-TWO-B OF THIS ARTICLE AND FUNDS
 TRANSFERRED FROM  THE  STOCK  TRANSFER  INCENTIVE  FUND  ESTABLISHED  BY
 SECTION  NINETY-TWO-I  OF  THIS ARTICLE AND REPEALED BY A CHAPTER OF THE
 LAWS OF TWO THOUSAND TWENTY, WHICH AMENDED THIS PARAGRAPH.  Any interest
 received by the comptroller on moneys on deposit shall be  retained  and
 become part of the fund, unless otherwise directed by law.
   §  5.  Subdivision (c) of section 11-503 of the administrative code of
 the city of New York is REPEALED.
   § 6. Subdivision 12 of section 11-604 of the  administrative  code  of
 the city of New York is REPEALED.
   §  7.  All  monies  accumulated  in  the stock transfer incentive fund
 established pursuant to section 92-i of the state  finance  law  on  the
 effective date of this act shall be transferred to the dedicated infras-
 tructure  investment  fund  as  established by section 93-b of the state
 finance law for the purposes set forth in such section.
   § 8. The environmental conservation law is amended  by  adding  a  new
 section 3-0323 to read as follows:
 § 3-0323. SAFE WATER AND INFRASTRUCTURE ACTION PROGRAM.
   1.  NOTWITHSTANDING  ANY OTHER PROVISIONS OF THIS CHAPTER OR ANY OTHER
 LAW AND SUBJECT TO AN APPROPRIATION MADE THEREFOR AND IN ACCORDANCE WITH
 THE PROVISIONS OF THIS  SECTION  AND  WITH  THE  RULES  AND  REGULATIONS
 PROMULGATED  BY  THE  COMMISSIONER IN CONNECTION THEREWITH, ON AND AFTER
 THE FIRST DAY OF APRIL, TWO THOUSAND TWENTY-ONE,  A  CONSOLIDATED  LOCAL
 INFRASTRUCTURE  PROGRAM  IS HEREBY ESTABLISHED FOR THE PURPOSE OF MAKING
 PAYMENTS TOWARD THE REPLACEMENT AND  REHABILITATION  OF  EXISTING  LOCAL
 MUNICIPALLY-OWNED  AND  FUNDED  DRINKING WATER, STORM WATER AND SANITARY
 SEWER SYSTEMS. FOR PURPOSES OF THIS SECTION, SUCH PROGRAM SHALL APPLY TO
 ANY COUNTY, CITY, TOWN OR VILLAGE DRINKING  WATER  SYSTEM,  STORM  WATER
 SYSTEM  OR  SANITARY SEWER SYSTEM WITHIN THE STATE THAT IS NOT UNDER THE
 MAINTENANCE AND/OR OPERATIONAL JURISDICTION OF THE STATE NOR ANY PRIVATE
 ENTITY. THE COMMISSIONER, IN CONJUNCTION WITH THE ENVIRONMENTAL  FACILI-
 TIES  CORPORATION,  SHALL PROMULGATE ALL NECESSARY RULES AND REGULATIONS
 TO CARRY OUT THE PROGRAM SO THAT AN EQUITABLE DISTRIBUTION OF AID  SHALL
 BE  MADE  FOR  THE  GENERAL  OPERATION AND/OR GENERAL MAINTENANCE OF ANY
 EXISTING COUNTY, CITY, TOWN AND VILLAGE  DRINKING  WATER  SYSTEM,  STORM
 WATER SYSTEM OR SANITARY SEWER SYSTEM.
   2.  ON  OR  BEFORE  THE TWENTY-FIFTH DAY OF APRIL, JUNE, SEPTEMBER AND
 NOVEMBER OF EACH STATE FISCAL YEAR COMMENCING WITH THE STATE FISCAL YEAR
 BEGINNING ON APRIL  FIRST,  TWO  THOUSAND  TWENTY-ONE,  THERE  SHALL  BE
 DISTRIBUTED  AND  PAID TO COUNTIES, CITIES, TOWNS AND VILLAGES AN AMOUNT
 EQUAL TO THE MONEYS  APPROPRIATED  FOR  THE  PURPOSES  OF  THIS  SECTION
 DIVIDED  BY  THE NUMBER OF PAYMENT DATES IN THAT STATE FISCAL YEAR. SUCH
 AMOUNTS SHALL BE DISTRIBUTED AND PAID PURSUANT TO SUBDIVISION  THREE  OF
 THIS SECTION.

 S. 6203--A                          6
 
   3.  AMOUNTS SHALL BE DISTRIBUTED FOR LOCAL DRINKING WATER, STORM WATER
 AND SANITARY SEWER SYSTEMS BASED UPON THE TOTAL LENGTH AND WIDTH OF  ALL
 PIPELINES AND MAINS OWNED AND OPERATED BY THE MUNICIPALITY.
   4.  MONIES MADE AVAILABLE MAY BE USED TO MATCH OTHER STATE AND FEDERAL
 FUNDS MADE AVAILABLE FOR SUCH PROJECTS.  THE FUNDS MAY ALSO BE  USED  TO
 SUPPORT SPECIAL IMPROVEMENT DISTRICTS CREATED TO PROVIDE DRINKING WATER,
 WASTE  WATER  AND  STORM WATER SERVICES UNDER ARTICLES TWELVE, TWELVE-A,
 TWELVE-C AND THIRTEEN OF THE TOWN LAW.  THE REMAINDER OF THE  APPORTION-
 MENT  MAY  BE USED FOR ANY EXISTING DRINKING WATER, STORM WATER OR SEWER
 SYSTEM PURCHASES, INCLUDING BUT NOT LIMITED TO, THE ACQUISITION OF MATE-
 RIALS FOR THE REPLACEMENT OR REHABILITATION.
   5. FOR ANY  CITY,  TOWN,  OR  VILLAGE  WHICH  PROPOSES  INFRASTRUCTURE
 CONSOLIDATION  UNDER  THIS  SECTION OR MERGES WITH ANOTHER MUNICIPALITY,
 THE FUNDS APPROPRIATED UNDER THIS SECTION MAY FUND COSTS ASSOCIATED WITH
 SUCH CONSOLIDATION.
   6. FOR EACH FISCAL YEAR, STARTING IN TWO  THOUSAND  TWENTY-ONE,  FUNDS
 ARE  TO BE MADE AVAILABLE TO THE LOCAL INFRASTRUCTURE ASSISTANCE ACCOUNT
 OF THE GENERAL FUND, AND DISTRIBUTED FROM THAT  ACCOUNT,  IN  AN  AMOUNT
 THAT  IS  AT LEAST EQUAL TO THOSE APPROPRIATED AND MADE AVAILABLE IN THE
 CONSOLIDATED LOCAL STREET AND HIGHWAY IMPROVEMENT PROGRAM (CHIPS).
   § 9. Section 270 of the tax law is amended by adding a new subdivision
 9 to read as follows:
   9. NOTWITHSTANDING ANY OTHER PROVISION TO THE CONTRARY, A  TRANSACTION
 REFERRED  TO IN SUBDIVISION ONE OF THIS SECTION IS SUBJECT TO TAX IF ANY
 ACTIVITY IN FURTHERANCE OF THE TRANSACTION OCCURS WITHIN THE STATE OR IF
 A PARTY INVOLVED IN THE TRANSACTION SATISFIES  A  NEXUS  WITH  NEW  YORK
 STATE WHICH SHALL BE DEFINED AS BROADLY AS IS PERMITTED UNDER THE UNITED
 STATES CONSTITUTION.
   § 10. This act shall take effect April 1, 2021.