S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    302
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen.  THOMAS -- 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 and the state finance law,  in  relation  to
   sales  tax  on  digital  advertising;  to  amend the education law, in
   relation to zero interest undergraduate loan refinancing; and  provid-
   ing for the repeal of such provisions upon the expiration thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision (c) of section 1105 of the tax law  is  amended
 by adding a new paragraph 1-a to read as follows:
   (1-A) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVI-
 SION, THE RECEIPTS FROM EVERY SALE, EXCEPT FOR RESALE, OF DIGITAL ADVER-
 TISING SERVICES. FOR PURPOSES OF THIS PARAGRAPH:
   (I)  "DIGITAL  ADVERTISING SERVICES" MEANS ADVERTISEMENT SERVICES ON A
 DIGITAL INTERFACE, INCLUDING ADVERTISEMENTS IN THE FORM OF BANNER ADVER-
 TISING, SEARCH ENGINE ADVERTISING, INTERSTITIAL ADVERTISING,  AND  OTHER
 COMPARABLE  ADVERTISING  SERVICES WHICH MARKETS OR PROMOTES A PARTICULAR
 GOOD, SERVICE, OR POLITICAL CANDIDATE OR MESSAGE.
   (II) "DIGITAL INTERFACE" MEANS  ANY  TYPE  OF  SOFTWARE,  INCLUDING  A
 WEBSITE,  PART  OF  A  WEBSITE,  OR  APPLICATION, THAT A USER IS ABLE TO
 ACCESS.
   (III) "USER" MEANS AN INDIVIDUAL OR ANY OTHER PERSON  WHO  ACCESSES  A
 DIGITAL INTERFACE WITH A DEVICE.
   ALL REVENUE RECEIVED FROM THE IMPOSITION OF THIS TAX SHALL BE DEPOSIT-
 ED  INTO  THE  DIGITAL ADVERTISING SERVICES TAX REVENUE FUND ESTABLISHED
 PURSUANT TO SECTION SEVENTY-EIGHT-C OF THE STATE FINANCE LAW.
   § 2. The state finance law is amended by adding a new section 78-c  to
 read as follows:
   §  78-C.  DIGITAL  ADVERTISING  SERVICES TAX REVENUE FUND. 1. THERE IS
 HEREBY CREATED AND ESTABLISHED IN THE SOLE CUSTODY OF  THE  STATE  COMP-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD03764-01-1

 S. 302                              2
 
 TROLLER  A  SPECIAL FUND TO BE KNOWN AS THE DIGITAL ADVERTISING SERVICES
 TAX REVENUE FUND WHICH SHALL BE FOR THE EXCLUSIVE BENEFIT  OF  PROVIDING
 ZERO  INTEREST  REFINANCING  OF  ELIGIBLE  EDUCATION LOANS BY THE HIGHER
 EDUCATION  SERVICES CORPORATION UNDER SECTION SIX HUNDRED EIGHTY-THREE-C
 OF THE EDUCATION LAW.
   2. AMOUNTS HELD IN THIS FUND SHALL NOT BE, OR BE DEEMED, FUNDS OF  THE
 STATE OR FUNDS UNDER THE MANAGEMENT OF THE STATE OR THE HIGHER EDUCATION
 SERVICES  CORPORATION.  THE  OBLIGATIONS OF THE FUND SHALL NOT BE, OR BE
 DEEMED, THE DEBTS OR OBLIGATIONS OF THE STATE AND THE  STATE  SHALL  NOT
 BE,  OR BE DEEMED, IN ANY WAY OBLIGATED TO ANY HOLDER OF ANY SUCH EDUCA-
 TION LOAN.
   3. SUCH FUND SHALL CONSIST OF ALL MONEYS RECEIVED BY THE DEPARTMENT OF
 TAXATION AND FINANCE PURSUANT TO PARAGRAPH ONE-A OF SUBDIVISION  (C)  OF
 SECTION  ELEVEN HUNDRED FIVE OF THE TAX LAW. MONEYS IN THE FUND SHALL BE
 SEGREGATED FROM ALL OTHER FUNDS KEPT BY THE STATE COMPTROLLER AND  SHALL
 NOT  BE USED FOR ANY OTHER PURPOSE BEYOND THOSE SET FORTH IN SECTION SIX
 HUNDRED EIGHTY-THREE-C OF THE EDUCATION LAW OR IN THIS SECTION.
   4. THE STATE COMPTROLLER SHALL MAKE PAYMENTS FROM THE FUND IN  AMOUNTS
 AND  AT  TIMES  REQUIRED  BY  THE  HIGHER EDUCATION SERVICES CORPORATION
 PURSUANT SECTION SIX HUNDRED EIGHTY-THREE-C OF THE EDUCATION LAW.
   § 3. The education law is amended by adding a  new  section  683-c  to
 read as follows:
   §  683-C.  REFINANCE  OF  UNDERGRADUATE  STUDENT LOANS. 1. AN ELIGIBLE
 BORROWER, AS DEFINED IN THIS SECTION, MAY APPLY TO  HAVE  THEIR  FEDERAL
 AND PRIVATE UNDERGRADUATE EDUCATION LOANS REFINANCED BY THE CORPORATION.
 THE  MAXIMUM AMOUNT ALLOWED TO BE REFINANCED UNDER THIS SECTION SHALL BE
 ONE HUNDRED THOUSAND DOLLARS. THE MINIMUM AMOUNT TO BE REFINANCED  SHALL
 BE THREE THOUSAND DOLLARS.
   2.  AN ELIGIBLE BORROWER SHALL INCLUDE AN INDIVIDUAL WHO: (A) HAS BEEN
 A NEW YORK STATE RESIDENT FOR AT LEAST  TWENTY-FOUR  CONSECUTIVE  MONTHS
 PRIOR  TO  APPLICATION  FOR  REFINANCING; (B) OWES LESS THAN ONE HUNDRED
 THOUSAND DOLLARS IN FEDERAL AND PRIVATE UNDERGRADUATE  EDUCATION  LOANS;
 AND (C) IS CURRENT ON THEIR LOAN PAYMENTS.
   3. BEGINNING JANUARY FIRST, TWO THOUSAND TWENTY-THREE, THE CORPORATION
 SHALL OFFER ZERO PERCENT INTEREST RATE REFINANCING BASED ON AVAILABILITY
 OF  FUNDS  IN  THE  DIGITAL ADVERTISING SERVICES TAX REVENUE FUND ESTAB-
 LISHED IN SECTION SEVENTY-EIGHT-C OF THE STATE FINANCE LAW.
   4. (A) A BORROWER MAY BE GRANTED DEFERMENT OR FORBEARANCE  UP  TO  TWO
 TIMES DURING THE REPAYMENT PERIOD UPON A SHOWING OF ECONOMIC HARDSHIP.
   (B)  THE  CORPORATION  SHALL ESTABLISH TERMS FOR REPAYMENT OF LOANS ON
 THE BASIS OF THE INCOME OF THE BORROWER. THERE SHALL BE NO  PENALTY  FOR
 PREPAYMENT.
   (C)  LOANS  REFINANCED  UNDER  THIS SECTION SHALL BE ELIGIBLE FOR LOAN
 FORGIVENESS PROGRAMS AVAILABLE TO PUBLIC SERVICE EMPLOYEES.
   5. RULES AND REGULATIONS. THE CORPORATION IS AUTHORIZED TO  PROMULGATE
 RULES AND REGULATIONS NECESSARY FOR THE IMPLEMENTATION OF THE PROVISIONS
 OF THIS SECTION.
   §  4.  This  act shall take effect on the thirtieth day after it shall
 have become a law and shall apply to sales made and  uses  occurring  on
 and  after  such date although made, occurring or rendered under a prior
 contract; provided that this act shall expire and be deemed  repealed  5
 years after such effective date.