S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4065
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 9, 2023
                                ___________
 
 Introduced  by  M.  of  A.  CUNNINGHAM  -- read once and referred to the
   Committee on Banks
 
 AN ACT to amend the banking law, the tax law and the state finance  law,
   in relation to enacting the "excelsior opportunity accounts act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "excelsior opportunity accounts act".
   §  2. The banking law is amended by adding a new article 17 to read as
 follows:
                                 ARTICLE 17
                    EXCELSIOR OPPORTUNITY ACCOUNTS ACT
 SECTION 9100. SHORT TITLE.
         9101. DEFINITIONS.
         9102. EXCELSIOR OPPORTUNITY FUND ESTABLISHED.
         9103. EO ACCOUNTS.
         9104. ASSIGNMENT, ALIENATION, AND TREATMENT OF DECEASED  ACCOUNT
                 HOLDERS.
         9105. ANNUAL CONTRIBUTION CERTIFICATION.
         9106. RULES   GOVERNING  EO  ACCOUNTS  RELATING  TO  INVESTMENT,
                 ACCOUNTING, AND REPORTING.
         9107. EXCELSIOR OPPORTUNITY FUND BOARD.
         9108. ACCOUNTS DISREGARDED IN DETERMINING ELIGIBILITY FOR  STATE
                 BENEFITS.
         9109. REPORTS.
         9110. TAX TREATMENT.
   §  9100.  SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
 THE "EXCELSIOR OPPORTUNITY ACCOUNTS ACT".
   § 9101. DEFINITIONS. AS USED  IN  THIS  ARTICLE,  UNLESS  THE  CONTEXT
 OTHERWISE REQUIRES, THE FOLLOWING WORDS AND TERMS SHALL HAVE THE MEANING
 ASCRIBED TO THEM:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02556-01-3
              

 A. 4065                             2
 
   1. "FUND" MEANS THE EXCELSIOR OPPORTUNITY FUND ESTABLISHED PURSUANT TO
 SECTION NINE THOUSAND ONE HUNDRED TWO OF THIS ARTICLE.
   2.  "EO  ACCOUNT"  MEANS  AN EXCELSIOR OPPORTUNITY ACCOUNT ESTABLISHED
 UNDER SECTION NINE THOUSAND ONE HUNDRED THREE OF THIS ARTICLE.
   3. "SUPERINTENDENT" MEANS THE  SUPERINTENDENT  OF  THE  DEPARTMENT  OF
 FINANCIAL SERVICES.
   4. "DEPARTMENT" MEANS THE DEPARTMENT OF FINANCIAL SERVICES.
   5.  "BOARD"  MEANS  THE  EXCELSIOR  OPPORTUNITY FUND BOARD ESTABLISHED
 PURSUANT TO SECTION NINE THOUSAND ONE HUNDRED SIX OF THIS ARTICLE.
   6. "EXECUTIVE DIRECTOR" MEANS THE EXECUTIVE DIRECTOR APPOINTED  PURSU-
 ANT TO SECTION NINE THOUSAND ONE HUNDRED SIX OF THIS ARTICLE.
   7.  "STOCK TRANSFER TAX FUND" MEANS THE FUND ESTABLISHED UNDER SECTION
 NINETY-TWO-B OF THE STATE FINANCE LAW.
   8. "ELIGIBLE-INDIVIDUAL" MEANS ANY INDIVIDUAL WHO:
   (A) WAS BORN AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-FIVE;
   (B) HAS A VALID SOCIAL SECURITY NUMBER;
   (C) IS UNDER EIGHTEEN YEARS OF AGE;
   (D) PRIMARILY RESIDES IN NEW YORK STATE; AND
   (E) HAS HOUSEHOLD INCOME NOT EXCEEDING SEVEN HUNDRED  PERCENT  OF  THE
 FEDERAL  POVERTY  LINE  FOR  A  FAMILY OF FOUR, AS DEFINED UNDER SECTION
 36B(D) OF THE INTERNAL REVENUE CODE OF NINETEEN EIGHTY-SIX, AS  AMENDED.
 IN  DETERMINING  HOUSEHOLD INCOME UNDER THIS SECTION, "HOUSEHOLD INCOME"
 MEANS THE ADJUSTED GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES REPORTED
 ON THE LATEST AVAILABLE FEDERAL OR STATE INCOME TAX RETURN FILED BY EACH
 MEMBER OF HOUSEHOLD, PROVIDED THAT FOR MARRIED COUPLES  FILING  INDIVID-
 UALLY, HOUSEHOLD INCOME SHALL INCLUDE THE COMBINED ADJUSTED GROSS INCOME
 REPORTED FOR BOTH SUCH INDIVIDUAL RETURNS.
   §  9102.  EXCELSIOR  OPPORTUNITY  FUND ESTABLISHED. 1. THERE IS HEREBY
 ESTABLISHED IN THE JOINT  CUSTODY  OF  THE  STATE  COMPTROLLER  AND  THE
 COMMISSIONER  OF  TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE
 "EXCELSIOR OPPORTUNITY FUND".
   2. MONIES OF THE FUND. THE FUND  SHALL  CONSIST  OF  THE  SUM  OF  ALL
 AMOUNTS  PAID  INTO  THE FUND UNDER THIS ARTICLE, INCREASED BY THE TOTAL
 NET EARNINGS FROM INVESTMENTS OF SUMS HELD IN THE FUND OR REDUCED BY THE
 TOTAL NET LOSSES FROM INVESTMENTS OF SUMS HELD IN THE FUND, AND  REDUCED
 BY  THE  TOTAL AMOUNT OF PAYMENTS MADE FROM THE FUND, INCLUDING PAYMENTS
 FOR ADMINISTRATIVE EXPENSES.
   3. USE OF THE FUND. (A) THE SUMS IN  THE  FUND  ARE  APPROPRIATED  AND
 SHALL REMAIN AVAILABLE WITHOUT FISCAL YEAR LIMITATION:
   (I)  TO  MAKE  CONTRIBUTIONS  TO  EO ACCOUNTS PURSUANT TO SECTION NINE
 THOUSAND ONE HUNDRED THREE OF THIS ARTICLE;
   (II) TO MAKE INVESTMENTS PURSUANT TO SECTION NINE THOUSAND ONE HUNDRED
 SIX OF THIS ARTICLE;
   (III) TO MAKE DISTRIBUTIONS IN ACCORDANCE WITH THIS ARTICLE;
   (IV) TO PAY THE ADMINISTRATIVE EXPENSES OF CARRYING  OUT  THIS  TITLE;
 AND
   (V)  TO  PURCHASE  INSURANCE  AS PROVIDED IN SECTION NINE THOUSAND ONE
 HUNDRED SIX OF THIS ARTICLE.
   (B) THE MONIES OF THE FUND SHALL NOT BE APPROPRIATED OR USED  FOR  ANY
 PURPOSE OTHER THAN THE PURPOSES SPECIFIED IN THIS ARTICLE.
   4. TRANSFERS TO THE FUND. THE SUPERINTENDENT SHALL MAKE TRANSFERS FROM
 THE  STOCK  TRANSFER  TAX  FUND  TO  THE  EXCELSIOR  OPPORTUNITY FUND AS
 FOLLOWS: (A) UPON RECEIPT OF A  CERTIFICATION  UNDER  PARAGRAPH  (A)  OF
 SUBDIVISION SIX OF SECTION NINE THOUSAND ONE HUNDRED THREE OF THIS ARTI-
 CLE,  THE SUPERINTENDENT SHALL MAKE AN INITIAL CONTRIBUTION OF ONE THOU-
 SAND DOLLARS TO SUCH INDIVIDUAL'S EO ACCOUNT.
 A. 4065                             3
 
   (B) FOR EACH SUBSEQUENT YEAR FOLLOWING AN  INITIAL  CONTRIBUTION  MADE
 PURSUANT  TO  PARAGRAPH  (A)  OF  THIS SUBDIVISION, AND FOR EACH ACCOUNT
 CERTIFIED UNDER PARAGRAPH (B) OF SUBDIVISION FIVE OF SECTION NINE  THOU-
 SAND  ONE  HUNDRED THREE OF THIS ARTICLE, THE ANNUAL CONTRIBUTION AMOUNT
 SHALL  BE FIVE HUNDRED DOLLARS UNTIL THE INDIVIDUAL ATTAINS AGE EIGHTEEN
 OR IS OTHERWISE DETERMINED TO BE INELIGIBLE.
   § 9103. EO ACCOUNTS. 1. ESTABLISHMENT. THE  EXECUTIVE  DIRECTOR  SHALL
 ESTABLISH  WITHIN  THE  FUND  AN  "EXCELSIOR OPPORTUNITY ACCOUNT" OR "EO
 ACCOUNT" FOR EACH ELIGIBLE-INDIVIDUAL CERTIFIED UNDER  SUBDIVISION  FIVE
 OF  THIS SECTION. EACH SUCH ACCOUNT SHALL BE IDENTIFIED WITH ITS ACCOUNT
 HOLDER BY MEANS OF A UNIQUE PERSONAL IDENTIFIER CURRENTLY RECOGNIZED  BY
 THE  INTERNAL REVENUE SERVICE AND SHALL REMAIN IN THE EXCELSIOR OPPORTU-
 NITY FUND.
   2. ACCOUNT BALANCE. THE BALANCE IN AN ACCOUNT HOLDER'S EO  ACCOUNT  AT
 ANY TIME IS THE EXCESS OF THE SUM OF:
   (A) ALL DEPOSITS MADE INTO THE FUND AND CREDITED TO SUCH ACCOUNT UNDER
 SUBDIVISION THREE OF THIS SECTION; AND
   (B) THE TOTAL AMOUNT OF ALLOCATIONS AND REDUCTIONS MADE TO THE ACCOUNT
 PURSUANT TO SUBDIVISION FOUR OF THIS SECTION; LESS
   (C)  AMOUNTS  PAID  OUT  OF  THE ACCOUNT OR OTHERWISE DISTRIBUTED WITH
 RESPECT TO SUCH INDIVIDUAL PURSUANT TO THIS ARTICLE.
   3. CREDITING OF CONTRIBUTIONS. PURSUANT TO REGULATIONS  PRESCRIBED  BY
 THE  EXECUTIVE  DIRECTOR, THE EXECUTIVE DIRECTOR SHALL CREDIT TO EACH EO
 ACCOUNT THE AMOUNTS PAID  INTO  THE  EXCELSIOR  OPPORTUNITY  FUND  UNDER
 SECTION  NINE THOUSAND ONE HUNDRED TWO OF THIS ARTICLE WHICH ARE ATTRIB-
 UTABLE TO THE HOLDER OF SUCH ACCOUNT.
   4. ALLOCATION OF EARNINGS AND LOSSES.  THE  EXECUTIVE  DIRECTOR  SHALL
 ALLOCATE  TO EACH EO ACCOUNT AN AMOUNT EQUAL TO THE NET EARNINGS AND NET
 LOSSES FROM EACH INVESTMENT OF SUMS IN WHICH ARE ATTRIBUTABLE, ON A  PRO
 RATA  BASIS, TO SUMS CREDITED TO SUCH ACCOUNT, REDUCED BY AN APPROPRIATE
 SHARE OF THE ADMINISTRATIVE EXPENSES PAID OUT OF THE  NET  EARNINGS,  AS
 DETERMINED BY THE EXECUTIVE DIRECTOR.
   5.  CERTIFICATION  OF ACCOUNT HOLDERS. (A) AUTOMATIC CERTIFICATION FOR
 CERTAIN INDIVIDUALS. FOR EACH CHILD BORN IN  THIS  STATE  ON  AND  AFTER
 JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, THE DEPARTMENT OF HEALTH, OR IN
 THE  CASE  OF  A  CHILD  BORN IN THE CITY OF NEW YORK, THE NEW YORK CITY
 DEPARTMENT OF HEALTH AND MENTAL HYGIENE, SHALL TRANSMIT A COPY  OF  SUCH
 CHILD'S  CERTIFICATE OF BIRTH TO THE SUPERINTENDENT, THE SOCIAL SECURITY
 NUMBER ISSUED TO SUCH CHILD, AND THE NAME, ADDRESS AND  SOCIAL  SECURITY
 NUMBER  OF  EACH  PARENT  OR  GUARDIAN OF SUCH CHILD. THE SUPERINTENDENT
 SHALL THEREAFTER CERTIFY SUCH CHILD AS AN ELIGIBLE-INDIVIDUAL.
   (B) CERTIFICATION OF OTHER INDIVIDUALS. IN THE CASE OF  AN  INDIVIDUAL
 WHO IS NOT CERTIFIED UNDER PARAGRAPH (A) OF THIS SUBDIVISION, THE PARENT
 OR  GUARDIAN  OF  SUCH INDIVIDUAL MAY REQUEST THE ESTABLISHMENT OF AN EO
 ACCOUNT UNDER SUBDIVISION ONE OF THIS  SECTION  BY  APPLICATION  TO  THE
 EXECUTIVE  DIRECTOR. IF THE EXECUTIVE DIRECTOR DETERMINES THAT THE INDI-
 VIDUAL ON WHOSE BEHALF THE APPLICATION IS MADE IS AN  ELIGIBLE-INDIVIDU-
 AL,  THE  EXECUTIVE DIRECTOR SHALL CERTIFY THE ELIGIBILITY OF SUCH INDI-
 VIDUAL AND SHALL ESTABLISH AN EO ACCOUNT FOR SUCH  INDIVIDUAL,  PROVIDED
 THAT  THE  INITIAL  CONTRIBUTION  AND  EACH  ANNUAL CONTRIBUTION TO SUCH
 ACCOUNT SHALL BE FIVE HUNDRED DOLLARS.
   6. RESTRICTIONS ON DISTRIBUTIONS. NO AMOUNT MAY BE DISTRIBUTED FROM AN
 EO ACCOUNT BEFORE THE ACCOUNT HOLDER'S EIGHTEENTH  BIRTHDAY,  REGARDLESS
 OF  WHETHER  SUCH INDIVIDUAL NO LONGER RESIDES IN THE STATE OR IS OTHER-
 WISE INELIGIBLE FOR ANNUAL CONTRIBUTIONS UNDER THIS ARTICLE.
 A. 4065                             4
 
   § 9104. ASSIGNMENT, ALIENATION,  AND  TREATMENT  OF  DECEASED  ACCOUNT
 HOLDERS.  1. ASSIGNMENT AND ALIENATION. AN INDIVIDUAL ACCOUNT HOLDER MAY
 NOT ASSIGN, ALIENATE OR OTHERWISE DISPOSE OF ANY PORTION OF OR  INTEREST
 IN  SUCH  INDIVIDUAL'S  EO  ACCOUNT TO ANOTHER INDIVIDUAL. THE EXECUTIVE
 DIRECTOR  SHALL  PROMULGATE RULES AND REGULATIONS BY WHICH AN INDIVIDUAL
 MAY VOLUNTARILY ABANDON AN EO ACCOUNT.
   2. ACCOUNTS OF DECEASED INDIVIDUALS. IN THE CASE OF A DECEASED ACCOUNT
 HOLDER OF AN EO ACCOUNT WHICH HAS AN ACCOUNT BALANCE GREATER THAN  ZERO,
 UPON  RECEIPT  OF NOTIFICATION OF SUCH INDIVIDUAL'S DEATH, THE EXECUTIVE
 DIRECTOR SHALL CLOSE SUCH ACCOUNT AND SHALL TRANSFER THE BALANCE OF  THE
 ACCOUNT  TO THE EO ACCOUNT OF SUCH ACCOUNT HOLDER'S SURVIVING SPOUSE OR,
 IF THERE IS NO SUCH ACCOUNT OF A SURVIVING SPOUSE, TO THE DULY APPOINTED
 LEGAL REPRESENTATIVE OF THE ESTATE OF THE DECEASED ACCOUNT HOLDER, OR IF
 THERE IS NO SUCH REPRESENTATIVE, TO THE PERSON OR PERSONS DETERMINED  TO
 BE  ENTITLED  THERETO  UNDER  THE  LAWS  OF THE DOMICILE OF THE DECEASED
 ACCOUNT HOLDER.
   § 9105. ANNUAL  CONTRIBUTION  CERTIFICATION.  THE  EXECUTIVE  DIRECTOR
 SHALL  ESTABLISH  AND  IMPLEMENT  A  PROCESS FOR PARENTS OR GUARDIANS OF
 ACCOUNT HOLDERS TO ANNUALLY CERTIFY  THEIR  ELIGIBILITY  TO  RECEIVE  AN
 ANNUAL  CONTRIBUTION  PURSUANT  TO  PARAGRAPH (B) OF SUBDIVISION FOUR OF
 SECTION NINE THOUSAND ONE HUNDRED TWO OF THIS ARTICLE. THE FORM SHALL BE
 MADE AVAILABLE TO EACH PARENT OR GUARDIAN OF AN ACCOUNT HOLDER  BY  MAIL
 AND  ELECTRONIC MEANS, AND SHALL BE CONSPICUOUSLY POSTED AND MADE ACCES-
 SIBLE ON THE DEPARTMENT'S WEBSITE.
   § 9106. RULES GOVERNING EO ACCOUNTS RELATING TO  INVESTMENT,  ACCOUNT-
 ING,  AND  REPORTING.  1.  INVESTMENT  PROGRAM. THE SUPERINTENDENT SHALL
 ESTABLISH AN INVESTMENT PROGRAM, AND THE BOARD SHALL  INVEST  MONIES  OF
 THE FUND IN DEBT OBLIGATIONS OF THE UNITED STATES GOVERNMENT WITH A TERM
 OF  THIRTY  YEARS  IN ACCORDANCE THEREWITH. THE INVESTMENT PROGRAM SHALL
 AUTHORIZE THE BOARD TO PURCHASE INSURANCE ON INVESTMENTS MADE UNDER THIS
 SECTION.
   2. ACCOUNTING. THE  EXECUTIVE  DIRECTOR  SHALL  CREATE  AND  ESTABLISH
 PROCEDURES  FOR  ACCOUNTING  CONSISTENT WITH THE GOVERNMENTAL ACCOUNTING
 STANDARDS BOARD.
   3. CONFIDENTIALITY AND DISCLOSURE. EXCEPT AS OTHERWISE AUTHORIZED, THE
 BOARD, THE EXECUTIVE DIRECTOR, AND ANY EMPLOYEE OF THE BOARD  SHALL  NOT
 DISCLOSE  INFORMATION WITH RESPECT TO THE FUND OR ANY ACCOUNT MAINTAINED
 THEREIN. THE EXECUTIVE DIRECTOR MAY, SUBJECT  TO  THE  RULES  AND  REGU-
 LATIONS  PROMULGATED  FOR  SUCH  PURPOSE, DISCLOSE SUCH INFORMATION WITH
 RESPECT TO AN INDIVIDUAL EO ACCOUNT TO SUCH PERSON  OR  PERSONS  AS  THE
 ACCOUNT HOLDER OR PARENT OR GUARDIAN OF THE ACCOUNT HOLDER MAY DESIGNATE
 IN  A REQUEST FOR OR CONSENT TO SUCH DISCLOSURE, OR TO SUCH OTHER PERSON
 AS THE ACCOUNT HOLDER OR HIS OR HER DESIGNEE MAY REQUEST, TO THE  EXTENT
 NECESSARY TO COMPLY WITH A REQUEST FOR INFORMATION OR ASSISTANCE MADE BY
 SUCH ACCOUNT HOLDER OR DESIGNEE.
   § 9107. EXCELSIOR OPPORTUNITY FUND BOARD. 1. THE EXCELSIOR OPPORTUNITY
 FUND  BOARD IS HEREBY ESTABLISHED WITHIN THE DEPARTMENT. THE BOARD SHALL
 WORK IN COLLABORATION WITH THE SUPERINTENDENT AND THE EXECUTIVE DIRECTOR
 TO IMPLEMENT AND ADMINISTER THE PROVISIONS OF THIS ARTICLE.
   2. THE BOARD SHALL CONSIST OF SEVEN VOTING MEMBERS, TO BE APPOINTED AS
 FOLLOWS: THREE MEMBERS SHALL BE APPOINTED BY THE GOVERNOR,  TWO  MEMBERS
 SHALL  BE  APPOINTED  BY  THE TEMPORARY PRESIDENT OF THE SENATE, AND TWO
 MEMBERS SHALL BE APPOINTED BY THE SPEAKER OF THE ASSEMBLY. MEMBERSHIP OF
 THE BOARD SHALL, TO THE GREATEST EXTENT PRACTICABLE, CONSIST OF  MEMBERS
 REPRESENTING  THE  VARIOUS  GEOGRAPHIC REGIONS OF THE STATE AND SHALL BE
 BALANCED AND DIVERSE IN ITS COMPOSITION. MEMBERS SHALL HAVE EXPERTISE IN
 A. 4065                             5
 
 ECONOMICS, INVESTING, CHILD DEVELOPMENT, FAMILY ECONOMICS,  GOVERNMENTAL
 ACCOUNTING, AND/OR SUCH OTHER QUALIFICATIONS THAT THE APPOINTING AUTHOR-
 ITIES DEEM NECESSARY.
   3.  THE  CHAIRPERSON  OF  THE  BOARD AND THE VICE CHAIRPERSON SHALL BE
 ELECTED FROM AMONG THE MEMBERS OF THE BOARD BY A MAJORITY OF THE MEMBERS
 OF SUCH BOARD. THE VICE CHAIRPERSON SHALL REPRESENT  THE  BOARD  IN  THE
 ABSENCE OF THE CHAIRPERSON AT ALL OFFICIAL BOARD FUNCTIONS.
   4. THE BOARD SHALL MEET AS FREQUENTLY AS ITS BUSINESS MAY REQUIRE. ALL
 MEETINGS  OF  THE  BOARD  SHALL  BE  CONDUCTED  IN  ACCORDANCE  WITH THE
 PROVISIONS OF ARTICLE SEVEN OF THE PUBLIC OFFICERS LAW.
   5. THE BOARD SHALL ASSIST IN THE DEVELOPMENT OF THE INVESTMENT PROGRAM
 AND SHALL PROVIDE OVERSIGHT AND ADVICE REGARDING THE  ADMINISTRATION  OF
 THE FUND AND EO ACCOUNTS.
   6.  THE  BOARD  SHALL  DEVELOP AN EDUCATIONAL INITIATIVE THAT PROVIDES
 INFORMATION AND INSTRUCTION ON FINANCIAL LITERACY, RECOMMENDED  USES  OF
 THE DISTRIBUTION, AND BEST PRACTICES FOR WEALTH GENERATION UPON DISTRIB-
 UTION OF AN EO ACCOUNT.
   §  9108.  ACCOUNTS  DISREGARDED  IN  DETERMINING ELIGIBILITY FOR STATE
 BENEFITS. AMOUNTS IN AN EO ACCOUNT SHALL NOT BE CONSIDERED IN  DETERMIN-
 ING  AN  INDIVIDUAL'S  OR HOUSEHOLD'S ELIGIBILITY FOR, OR THE AMOUNT OF,
 ANY BENEFIT OR SERVICE, PAID FOR IN WHOLE OR IN PART WITH  STATE  FUNDS,
 INCLUDING  BUT NOT LIMITED TO ANY PUBLIC ASSISTANCE OR FINANCIAL ASSIST-
 ANCE PROGRAM UNDER THE SOCIAL SERVICES LAW, ANY  STUDENT  FINANCIAL  AID
 PROGRAM AND ANY OTHER PUBLIC BENEFIT OR ASSISTANCE PROGRAM.
   §  9109.  REPORTS. 1. REPORTS TO THE LEGISLATURE. THE EXECUTIVE DIREC-
 TOR, IN CONSULTATION WITH THE SUPERINTENDENT, SHALL ANNUALLY TRANSMIT  A
 WRITTEN  REPORT  TO  THE BOARD NO LATER THAN JANUARY FIRST OF EACH YEAR.
 THE BOARD SHALL THEREAFTER SUBMIT SUCH REPORT, TOGETHER WITH  ANY  FIND-
 INGS  AND  RECOMMENDATIONS THEREON TO THE LEGISLATURE. SUCH REPORT SHALL
 INCLUDE A DETAILED DESCRIPTION OF THE STATUS AND OPERATION OF THE  FUND,
 THE  MANAGEMENT OF EO ACCOUNTS; A DETAILED ACCOUNTING OF THE ADMINISTRA-
 TIVE EXPENSES INCURRED IN CARRYING OUT THE PROVISIONS OF  THIS  ARTICLE,
 INCLUDING  THE  RATIO  OF SUCH ADMINISTRATIVE EXPENSES TO THE BALANCE OF
 THE FUND AND THE METHODOLOGY ADOPTED BY THE EXECUTIVE DIRECTOR FOR ALLO-
 CATING SUCH EXPENSES AMONG EXISTING EO ACCOUNTS.
   2. REPORTS TO ACCOUNT HOLDERS. THE BOARD SHALL  PRESCRIBE  REGULATIONS
 UNDER  WHICH  EACH INDIVIDUAL FOR WHOM AN EO ACCOUNT IS MAINTAINED SHALL
 BE FURNISHED WITH AN ANNUAL STATEMENT RELATING TO  SUCH  ACCOUNT,  WHICH
 SHALL INCLUDE BUT NOT BE LIMITED TO:
   (A) A STATEMENT OF THE BALANCE OF INDIVIDUAL'S EO ACCOUNT;
   (B)  A  PROJECTION  OF THE ACCOUNT'S GROWTH BY THE TIME THE INDIVIDUAL
 ATTAINS THE AGE OF EIGHTEEN; AND
   (C) SUCH OTHER INFORMATION AS THE SUPERINTENDENT AND BOARD DEEM  RELE-
 VANT.
   §  9110. TAX TREATMENT. THE EXCELSIOR OPPORTUNITY FUND AND EO ACCOUNTS
 SHALL BE EXEMPT FROM TAXATION.
   § 2. Subdivision 1 of section 280-a of the  tax  law,  as  amended  by
 chapter 578 of the laws of 1981, is amended to read as follows:
   1.  Except  as  otherwise  provided  in  subdivision  fifteen  of this
 section, where a tax shall have been paid under this article  a  portion
 of  the  amount paid shall be allowed as a rebate and such portion shall
 be paid to the taxpayer but only to the extent that moneys are available
 for the payment of such rebates in the  stock  transfer  incentive  fund
 established  pursuant  to section ninety-two-i of the state finance law.
 The portion of the amount of tax paid which is to be allowed as a rebate
 shall be thirty percent of the tax incurred  and  paid  on  transactions
 A. 4065                             6
 
 subject  to the stock transfer tax occurring on and after October first,
 nineteen hundred seventy-nine and  on  or  before  September  thirtieth,
 nineteen  hundred  eighty and sixty percent of the tax incurred and paid
 on  such  transactions  occurring  on  and after October first, nineteen
 hundred eighty and on or before September  thirtieth,  nineteen  hundred
 eighty-one  and  all  of  the  amount  of tax incurred and paid shall be
 allowed as a rebate on transactions subject to the  stock  transfer  tax
 occurring on and after October first, nineteen hundred eighty-one AND ON
 OR  BEFORE  SEPTEMBER  THIRTIETH,  TWO  THOUSAND  TWENTY-FIVE, AND FIFTY
 PERCENT OF THE AMOUNT OF TAX INCURRED AND PAID SHALL  BE  ALLOWED  AS  A
 REBATE  ON  TRANSACTIONS  SUBJECT TO THE STOCK TRANSFER TAX OCCURRING ON
 AND AFTER OCTOBER FIRST, TWO THOUSAND TWENTY-FIVE.
   §  3. Section 92-b of the state finance law, as added by chapter 91 of
 the laws of 1965 and as renumbered and subdivision 5 as added by chapter
 3 of the laws of 1966, subdivision 3 as amended by chapter  878  of  the
 laws  of  1977,  subdivision  4 as amended by chapter 724 of the laws of
 1979 and subdivision 7 as added by section 10 of part SS1 of chapter  57
 of the laws of 2008, is amended to read as follows:
   § 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 THE reasonable costs of the state
 tax commission in administering, collecting and distributing  such  tax,
 commencing  with  the  fiscal  year ending March thirty-first, [nineteen
 hundred seventy-seven,  shall  be  appropriated  to  (i)  the  municipal
 assistance  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  adminis-
 tering  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  ninety-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 certified by the commissioner  of  taxation  and  finance,  the
 balance  shall  be appropriated to the city of New York, for the support
 of local government] TWO THOUSAND  TWENTY-FIVE,  THE  BALANCE  SHALL  BE
 DEPOSITED  INTO  THE  ACCOUNT  FOR THE EXCELSIOR OPPORTUNITY FUND ESTAB-
 LISHED PURSUANT TO ARTICLE SEVENTEEN OF THE BANKING LAW.
   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
 A. 4065                             7

 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
 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-
 A. 4065                             8

 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
 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.]
   § 3. 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. Any inter-
 est received by the comptroller on moneys on deposit shall  be  retained
 and become part of the fund, unless otherwise directed by law.
   § 4. Subsection (c) of section 612 of the tax law is amended by adding
 a new paragraph 47 to read as follows:
   (47)  FOR  TAXABLE  YEARS  BEGINNING ON AND AFTER TWO THOUSAND TWENTY-
 FIVE, THE AMOUNT OF ANY CONTRIBUTION TO OR DISTRIBUTION FROM AN  EXCELS-
 IOR  OPPORTUNITY  ACCOUNT  PURSUANT  TO ARTICLE SEVENTEEN OF THE BANKING
 LAW, TO THE EXTENT INCLUDIBLE IN FEDERAL ADJUSTED GROSS INCOME.
   § 5. This act shall take effect immediately.