NY State Senate Bill 2019-S6102

Senate Bill S6102

2019-2020 Legislative Session

Relates to a tax on gross income upon every corporation which derives income from the data individuals of this state share with such corporations

download bill text pdf

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to budget and revenue
May 16, 2019	referred to budget and revenue

2019-S6102 (ACTIVE) - Details

See Assembly Version of this Bill:: A9112
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §209, Tax L; add §99-hh, St Fin L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S3790, A946
2023-2024: S1845

2019-S6102 (ACTIVE) - Summary

Requires a five percent tax on gross income upon every corporation which derives income from the data individuals of this state share with such corporations; establishes the New York data fund to distribute the earnings of the five percent to each taxpayer of the state.

2019-S6102 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6102

SPONSOR: CARLUCCI
 
TITLE OF BILL:

An act to amend the tax law, in relation to a tax on gross income upon
every corporation which derives income from the data individuals of this
state share with such corporations; and to amend the state finance law,
in relation to establishing the New York data fund

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Section 209 of the tax law is amended by adding a new subdi-
vision 13 to read as follows:

13. A tax equal to five percent tax on the gross income is hereby
imposed upon every corporation which derives income from the data indi-
viduals of this state share with such corporations.

Section 2: The state finance law is amended by adding a new section
99-ff to read as follows:

99-ff. Data fund. 1. A special fund to be known as the "New York data
fund" is hereby established in the custody of the state comptroller and
the commissioner of taxation and finance.

Section 3: Effective Date.

 
JUSTIFICATION:

New York's consumers should also be able to share in the wealth that is
created from their data. Every day that we live our lives data about us
is being generated. Turn on your phone, check your email, watch TV,
browse the web, drive through a toll or, talk to a friend on the phone.
In all of these activities, data about our actions, behaviors, likes and
dislikes, mood and feelings, purchases and choices are being recorded by
a huge variety of organizations that never will inform you of the data
they collect, sell and share.

 
LEGISLATIVE HISTORY:

New Legislation.

 
FISCAL IMPLICATIONS:

 
EFFECTIVE DATE:
This act shall take effect an the one hundred eightieth day after it
shall have become a law. Effective immediately, the addition, amendment
and/or repeal of any rule or regulation necessary for the implementation
of this act on its effective date are authorized to be made and
completed on or before such effective date.

2019-S6102 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6102
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to a tax on gross  income  upon
   every  corporation  which  derives income from the data individuals of
   this state share with  such  corporations;  and  to  amend  the  state
   finance law, in relation to establishing the New York data fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 209 of the tax law  is  amended  by  adding  a  new
 subdivision 13 to read as follows:
   13.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF THIS CHAPTER, OR OF ANY
 OTHER LAW, A TAX EQUAL TO FIVE PERCENT TAX ON THE GROSS INCOME IS HEREBY
 IMPOSED UPON EVERY CORPORATION WHICH DERIVES INCOME FROM THE DATA  INDI-
 VIDUALS OF THIS STATE SHARE WITH SUCH CORPORATIONS.
   § 2. The state finance law is amended by adding a new section 99-hh to
 read as follows:
   §  99-HH.  DATA  FUND.  1. A SPECIAL FUND TO BE KNOWN AS THE "NEW YORK
 DATA FUND" IS HEREBY ESTABLISHED IN THE CUSTODY OF THE STATE COMPTROLLER
 AND THE COMMISSIONER OF TAXATION AND FINANCE.
   2. THE FUND SHALL CONSIST OF  ALL  MONIES  TRANSFERRED  TO  SUCH  FUND
 PURSUANT  TO LAW, ALL MONIES REQUIRED BY ANY PROVISION OF LAW TO BE PAID
 INTO OR CREDITED TO THE FUND, ALL MONEYS DERIVED BY SUBDIVISION THIRTEEN
 OF SECTION TWO HUNDRED NINE OF THE TAX LAW  AND  ANY  INTEREST  EARNINGS
 WHICH  MAY  ACCRUE  FROM THE INVESTMENT OF MONIES IN THE FUND. SUCH FUND
 SHALL BE DIVIDED INTO AN EARNINGS RESERVE ACCOUNT AND A  DIVIDEND  FUND.
 NOTHING CONTAINED IN THIS SECTION SHALL PREVENT THE STATE FROM RECEIVING
 GRANTS,  GIFTS  OR  BEQUESTS  FOR THE PURPOSES OF THE FUND AS DEFINED IN
 THIS SECTION AND DEPOSITING THEM INTO THE FUND ACCORDING TO LAW.
   3. FOR THE PURPOSES OF THIS SECTION:
   (A) "BOARD" MEANS THE BOARD OF TRUSTEES OF  THE  NEW  YORK  DATA  FUND
 BOARD.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09791-03-9

 S. 6102                             2
 
   (B) "FUND" MEANS THE NEW YORK DATA FUND.
   4.  THERE  IS ESTABLISHED THE NEW YORK DATA FUND BOARD. THE PURPOSE OF
 THE BOARD IS TO MANAGE AND INVEST THE ASSETS OF THE DATA FUND AND  OTHER
 FUNDS DESIGNATED BY LAW PURSUANT TO THIS SECTION.
   5.  (A)  THE  BOARD CONSISTS OF SIX MEMBERS APPOINTED BY THE GOVERNOR.
 TWO OF THE MEMBERS  SHALL  BE  COMMISSIONERS  OF  DEPARTMENTS  OF  STATE
 GOVERNMENT,  ONE  OF  WHOM  SHALL  BE  THE  COMMISSIONER OF TAXATION AND
 FINANCE. THE REMAINING FOUR MEMBERS SHALL BE APPOINTED AS  FOLLOWS:  ONE
 BY  THE TEMPORARY PRESIDENT OF THE SENATE; ONE BY THE MINORITY LEADER OF
 THE SENATE; ONE BY THE SPEAKER OF THE ASSEMBLY; AND ONE BY THE  MINORITY
 LEADER  OF  THE  ASSEMBLY.  SUCH MEMBERS MAY NOT HOLD ANY OTHER STATE OR
 FEDERAL OFFICE, POSITION OR EMPLOYMENT, EITHER ELECTIVE  OR  APPOINTIVE,
 EXCEPT AS A MEMBER OF THE ARMED FORCES OF EITHER THE UNITED STATES OR OF
 THIS STATE.
   (B)  THE  FOUR PUBLIC MEMBERS OF THE BOARD MUST HAVE RECOGNIZED COMPE-
 TENCE AND WIDE EXPERIENCE IN FINANCE,  INVESTMENTS,  OR  OTHER  BUSINESS
 MANAGEMENT-RELATED FIELDS.
   (C) THE BOARD SHALL ANNUALLY ELECT A CHAIRMAN FROM AMONG ITS MEMBERS.
   (D)  THE  PUBLIC  MEMBERS OF THE BOARD SHALL BE APPOINTED FOR TERMS OF
 FOUR YEARS, AND THEY MAY BE REAPPOINTED. THE TERMS OF THE PUBLIC MEMBERS
 SHALL BE STAGGERED SO THAT NO MORE THAN ONE  TERM  OF  A  PUBLIC  MEMBER
 EXPIRES EACH YEAR.
   (I)  A VACANCY ON THE BOARD SHALL BE PROMPTLY FILLED BY APPOINTMENT BY
 THE GOVERNOR, SUBJECT TO APPROVAL BY  THE  SENATE.  AN  APPOINTEE  TO  A
 VACANCY  SHALL  HOLD  OFFICE  FOR  THE BALANCE OF THE TERM FOR WHICH THE
 APPOINTEE'S PREDECESSOR ON THE BOARD WAS APPOINTED.
   (II) A VACANCY ON THE BOARD DOES NOT IMPAIR THE AUTHORITY OF A  QUORUM
 OF  THE  BOARD  TO EXERCISE ALL THE POWERS AND PERFORM ALL THE DUTIES OF
 THE BOARD.
   (E) FOUR MEMBERS OF THE BOARD CONSTITUTE A QUORUM FOR THE  TRANSACTION
 OF  BUSINESS  AND  THE  EXERCISE  OF THE POWERS AND DUTIES OF THE BOARD.
 ACTION MAY BE TAKEN ONLY UPON AFFIRMATIVE VOTE OF A MAJORITY OF THE FULL
 MEMBERSHIP OF THE BOARD.
   (F) PUBLIC MEMBERS OF THE BOARD RECEIVE AN HONORARIUM OF FOUR  HUNDRED
 DOLLARS  FOR EACH DAY SPENT AT A MEETING OF THE BOARD OR AT A MEETING OF
 A SUBCOMMITTEE OF THE BOARD OR AT A PUBLIC MEETING AS  A  REPRESENTATIVE
 OF  THE  BOARD. MEMBERS OF THE BOARD ARE ENTITLED TO PER DIEM AND TRAVEL
 ALLOWANCES AS PROVIDED BY LAW FOR MEMBERS OF STATE  BOARDS  AND  COMMIS-
 SIONS.
   (G)  IF  A  MEMBER  OF  THE  BOARD  OR  AN EMPLOYEE OF THE CORPORATION
 ACQUIRES, OWNS, OR CONTROLS AN INTEREST, DIRECT OR INDIRECT, IN AN ENTI-
 TY OR PROJECT IN WHICH FUND ASSETS ARE INVESTED, THE MEMBER SHALL  IMME-
 DIATELY  DISCLOSE  THE INTEREST TO THE BOARD. THE DISCLOSURE IS A MATTER
 OF PUBLIC RECORD AND SHALL BE INCLUDED IN THE MINUTES OF THE BOARD MEET-
 ING NEXT FOLLOWING THE DISCLOSURE.
   (H) ON OR BEFORE THE FIRST OF JANUARY EACH YEAR, THE  COMMISSIONER  OF
 TAXATION  AND  FINANCE  SHALL  PROVIDE A WRITTEN REPORT TO THE TEMPORARY
 PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIR  OF  THE  SENATE
 FINANCE COMMITTEE, CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, CHAIR
 OF THE SENATE COMMITTEE ON CODES, CHAIR OF THE ASSEMBLY CODES COMMITTEE,
 THE  STATE COMPTROLLER AND THE PUBLIC. SUCH REPORT SHALL INCLUDE HOW THE
 MONIES OF THE FUND WERE UTILIZED DURING THE PRECEDING CALENDAR YEAR, AND
 SHALL INCLUDE, BUT NOT BE LIMITED TO:
   (I) THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD  PROCESS
 USED FOR SUCH DISBURSEMENTS; AND
   (II) THE AMOUNT AWARDED TO EACH TAXPAYER.

 S. 6102                             3
 
   6. (A) THE BOARD SHALL ADOPT RULES AND REGULATIONS SPECIFICALLY DESIG-
 NATING THE TYPES OF INCOME-PRODUCING INVESTMENTS ELIGIBLE FOR INVESTMENT
 OF  FUND ASSETS.  WHEN ADOPTING RULES AND REGULATIONS AUTHORIZED BY THIS
 SECTION OR MANAGING AND INVESTING FUND ASSETS, THE PRUDENT-INVESTOR RULE
 SHALL  BE  APPLIED BY THE BOARD. THE PRUDENT-INVESTOR RULE AS APPLIED TO
 INVESTMENT ACTIVITY OF THE FUND MEANS THAT THE BOARD SHALL EXERCISE  THE
 JUDGMENT AND CARE UNDER THE CIRCUMSTANCES THEN PREVAILING THAT AN INSTI-
 TUTIONAL  INVESTOR  OF  ORDINARY  PRUDENCE, DISCRETION, AND INTELLIGENCE
 EXERCISES  IN  THE  DESIGNATION  AND  MANAGEMENT  OF  LARGE  INVESTMENTS
 ENTRUSTED  TO  IT,  NOT  IN  REGARD TO SPECULATION, BUT IN REGARD TO THE
 PERMANENT DISPOSITION OF FUNDS, CONSIDERING PRESERVATION OF THE PURCHAS-
 ING POWER OF THE FUND OVER TIME  WHILE  MAXIMIZING  THE  EXPECTED  TOTAL
 RETURN FROM BOTH INCOME AND THE APPRECIATION OF CAPITAL.
   (B)  THE BOARD MAY NOT BORROW MONEY OR GUARANTEE FROM PRINCIPAL OF THE
 FUND THE OBLIGATIONS OF OTHERS, EXCEPT AS PROVIDED IN THIS  SUBDIVISION.
 WITH  RESPECT TO INVESTMENTS OF THE FUND, THE BOARD MAY, EITHER DIRECTLY
 OR THROUGH AN ENTITY IN WHICH THE INVESTMENT IS MADE,  BORROW  MONEY  IF
 THE BORROWING IS NONRECOURSE TO THE BOARD AND THE FUND.
   (C)  THE  BOARD  SHALL  MAINTAIN  A  REASONABLE  DIVERSIFICATION AMONG
 INVESTMENTS UNLESS, UNDER THE CIRCUMSTANCES, IT IS CLEARLY  PRUDENT  NOT
 TO  DO  SO.  THE  BOARD  SHALL INVEST THE ASSETS OF THE FUND IN IN-STATE
 INVESTMENTS TO THE EXTENT THAT IN-STATE INVESTMENTS ARE AVAILABLE AND IF
 THE IN-STATE INVESTMENTS:
   (I) HAVE A RISK LEVEL AND  EXPECTED  RETURN  COMPARABLE  TO  ALTERNATE
 INVESTMENT OPPORTUNITIES; AND
   (II) ARE ELIGIBLE FOR INVESTMENT OF FUND ASSETS.
   (D)  THE  BOARD  MAY  ENTER  INTO AND ENFORCE ALL CONTRACTS NECESSARY,
 CONVENIENT, OR DESIRABLE FOR MANAGING THE FUND'S  ASSETS  AND  CORPORATE
 OPERATIONS,  INCLUDING  CONTRACTS FOR FUTURE DELIVERY TO IMPLEMENT ASSET
 ALLOCATION STRATEGIES OR TO HEDGE AN EXISTING EQUIVALENT OWNERSHIP POSI-
 TION IN AN INVESTMENT.
   7. NET INCOME OF THE FUND INCLUDES INCOME OF THIS FUND. NET INCOME  OF
 THE  FUND  SHALL  BE  COMPUTED ANNUALLY AS OF THE LAST DAY OF THE FISCAL
 YEAR  IN  ACCORDANCE  WITH  GENERALLY  ACCEPTED  ACCOUNTING  PRINCIPLES,
 EXCLUDING  ANY UNREALIZED GAINS OR LOSSES. INCOME AVAILABLE FOR DISTRIB-
 UTION EQUALS TWENTY-ONE PERCENT OF THE NET INCOME OF THE  FUND  FOR  THE
 LAST  FIVE  FISCAL  YEARS, INCLUDING THE FISCAL YEAR JUST ENDED, BUT MAY
 NOT EXCEED NET INCOME OF THE FUND FOR THE FISCAL YEAR  JUST  ENDED  PLUS
 THE BALANCE IN THIS FUND.
   8.  (A)  THE  EARNINGS  RESERVE  ACCOUNT  IS ESTABLISHED AS A SEPARATE
 ACCOUNT IN THE FUND. INCOME FROM THE FUND  SHALL  BE  DEPOSITED  BY  THE
 BOARD  INTO  THE ACCOUNT AS SOON AS IT IS RECEIVED. MONEY IN THE ACCOUNT
 SHALL BE INVESTED IN INVESTMENTS AUTHORIZED  UNDER  SUBDIVISION  SIX  OF
 THIS SECTION.
   (B)  AT THE END OF EACH FISCAL YEAR, THE BOARD SHALL TRANSFER FROM THE
 EARNINGS RESERVE ACCOUNT TO THE DIVIDEND  FUND  ESTABLISHED  UNDER  THIS
 SECTION, FIFTY PERCENT OF THE INCOME AVAILABLE FOR DISTRIBUTION.
   (C)  AFTER  THE  TRANSFER UNDER PARAGRAPH (B) OF THIS SUBDIVISION, THE
 BOARD SHALL TRANSFER FROM THE EARNINGS RESERVE ACCOUNT TO THE  PRINCIPAL
 OF  THE  FUND  AN AMOUNT SUFFICIENT TO OFFSET THE EFFECT OF INFLATION ON
 PRINCIPAL OF THE FUND DURING THAT FISCAL YEAR. THE BOARD SHALL CALCULATE
 THE AMOUNT TO TRANSFER TO THE PRINCIPAL UNDER THIS SUBDIVISION BY:
   (I) COMPUTING THE AVERAGE OF THE MONTHLY UNITED STATES CONSUMER  PRICE
 INDEX  FOR  ALL  URBAN  CONSUMERS  FOR EACH OF THE TWO PREVIOUS CALENDAR
 YEARS;

 S. 6102                             4

   (II) COMPUTING THE PERCENTAGE CHANGE  BETWEEN  THE  FIRST  AND  SECOND
 CALENDAR YEAR AVERAGE; AND
   (III)  APPLYING THAT RATE TO THE VALUE OF THE PRINCIPAL OF THE FUND ON
 THE LAST DAY OF THE FISCAL YEAR JUST ENDED.
   9. THE BOARD SHALL DETERMINE  AND  DISTRIBUTE  SUCH  AMOUNTS  TO  EACH
 TAXPAYER OF THE STATE.
   10.  THE RESOURCES OF THE BOARD OR THE FUND MAY NOT BE USED TO FINANCE
 OR INFLUENCE POLITICAL ACTIVITIES.
   11. MONIES OF THE FUND, WHEN ALLOCATED,  SHALL  BE  AVAILABLE  TO  THE
 DEPARTMENT  OF TAXATION AND FINANCE FOR DISTRIBUTION TO TAXPAYERS OF THE
 STATE.
   12. MONIES SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT  OF
 THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY BOARD, IN CONJUNC-
 TION WITH THE COMMISSIONER OF TAXATION AND FINANCE.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.  Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.

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