S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5089
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 2, 2023
                                ___________
 
 Introduced by M. of A. PALMESANO, BARCLAY, BLANKENBUSH, BRABENEC, DeSTE-
   FANO,  J. M. GIGLIO,  GOODELL, LEMONDES, MANKTELOW, MORINELLO, NORRIS,
   REILLY, TAGUE -- Multi-Sponsored by --  M.  of  A.  BYRNES,  DiPIETRO,
   FITZPATRICK,  HAWLEY,  McDONOUGH,  MILLER,  RA, WALSH -- read once and
   referred to the Committee on Ways and Means

 AN ACT to amend the tax law and the state finance law,  in  relation  to
   providing  for the deposit into the dedicated highway and bridge trust
   fund of a portion of the sales tax revenue  from  the  sale  of  motor
   fuel; and to repeal certain provisions of the state finance law relat-
   ing thereto
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 1148 of the tax law, as amended by section  6-a  of
 part G of chapter 59 of the laws of 2019, is amended to read as follows:
   §  1148.  Deposit  and disposition of revenue. (a) All taxes, interest
 and penalties collected or received by the commissioner under this arti-
 cle shall be deposited and disposed of pursuant  to  the  provisions  of
 section one hundred seventy-one-a of this chapter; provided however, the
 comptroller  shall  on  or before the twelfth day of each month, pay all
 such taxes, interest and penalties  collected  under  this  article  and
 remaining  to  the comptroller's credit in such banks, banking houses or
 trust companies at the close of business on the last day of the  preced-
 ing month, into the general fund of the state treasury.
   (A-1)  PROVIDED  HOWEVER, BEFORE THE FUNDS MAY BE DISTRIBUTED PURSUANT
 TO SUBDIVISION (A) OF THIS SECTION, ONE CENT OF THE TAXES  COLLECTED  OR
 RECEIVED  BY  THE COMMISSIONER UNDER THIS ARTICLE FOR THE RETAIL SALE OF
 EACH GALLON OF MOTOR FUEL SHALL BE DEPOSITED IN THE  SPECIAL  OBLIGATION
 RESERVE  AND  PAYMENT  ACCOUNT OF THE DEDICATED HIGHWAY AND BRIDGE TRUST
 FUND, ESTABLISHED BY SECTION EIGHTY-NINE-B OF THE STATE FINANCE LAW.
   (b) Provided however, [before] AFTER the funds [may be]  ARE  distrib-
 uted pursuant to subdivision [(a)] (A-1) of this section BUT BEFORE SUCH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08412-01-3
              

 A. 5089                             2
 
 FUNDS  ARE DISTRIBUTED PURSUANT TO SUBDIVISION (A) OF THIS SECTION, such
 funds  shall  be  distributed  as   otherwise   provided   in   sections
 ninety-two-d,  ninety-two-h,  and  ninety-two-r of the state finance law
 and  sections eleven hundred two, eleven hundred four and eleven hundred
 nine of this article.
   (c) Provided however, after funds are distributed pursuant to  [subdi-
 vision] SUBDIVISIONS (A-1) AND (b) of this section but before such funds
 are distributed pursuant to subdivision (a) of this section, funds shall
 be  deposited  by  the  comptroller  into  the New York central business
 district trust fund established pursuant to  section  ninety-nine-ff  of
 the  state finance law in accordance with the following schedule: (1) in
 state fiscal year two thousand  nineteen  -  two  thousand  twenty,  one
 hundred  twelve  million  five  hundred  thousand  dollars; (2) in state
 fiscal year two thousand twenty - two thousand twenty-one,  one  hundred
 fifty  million  dollars; and (3) in state fiscal year two thousand twen-
 ty-one - two thousand twenty-two and every succeeding state fiscal year,
 an amount equal to one hundred one percent of the  amount  deposited  in
 the  immediately  preceding  state fiscal year. The funds deposited into
 the New York central business district trust  fund  shall  be  deposited
 monthly in equal installments.
   §  2.  Subdivision  (a-1)  of section 1148 of the tax law, as added by
 section one of this act, is amended to read as follows:
   (a-1) Provided however, before the funds may be  distributed  pursuant
 to  subdivision  (a)  of this section, [one cent] TWO CENTS of the taxes
 collected or received by the commissioner under  this  article  for  the
 retail  sale  of  each  gallon  of  motor fuel shall be deposited in the
 special obligation reserve and payment account of the dedicated  highway
 and bridge trust fund, established by section eighty-nine-b of the state
 finance law.
   §  3.  Subdivision (a-1) of section 1148 of the tax law, as amended by
 section two of this act, is amended to read as follows:
   (a-1) Provided however, before the funds may be  distributed  pursuant
 to  subdivision  (a)  of  this  section,  [two] THREE cents of the taxes
 collected or received by the commissioner under  this  article  for  the
 retail  sale  of  each  gallon  of  motor fuel shall be deposited in the
 special obligation reserve and payment account of the dedicated  highway
 and bridge trust fund, established by section eighty-nine-b of the state
 finance law.
   §  4.  Subdivision (a-1) of section 1148 of the tax law, as amended by
 section three of this act, is amended to read as follows:
   (a-1) Provided however, before the funds may be  distributed  pursuant
 to  subdivision  (a)  of  this  section, [three] FOUR cents of the taxes
 collected or received by the commissioner under  this  article  for  the
 retail  sale  of  each  gallon  of  motor fuel shall be deposited in the
 special obligation reserve and payment account of the dedicated  highway
 and bridge trust fund, established by section eighty-nine-b of the state
 finance law.
   §  5.  Paragraph  (a)  of  subdivision  3 of section 89-b of the state
 finance law, as amended by section 4 of chapter 368 of the laws of 2019,
 is amended to read as follows:
   (a) The special obligation reserve and payment account  shall  consist
 (i)  of all moneys required to be deposited in the dedicated highway and
 bridge trust fund pursuant to the provisions  of  sections  two  hundred
 five,  two  hundred  eighty-nine-e,  three  hundred  one-j, five hundred
 fifteen, ELEVEN HUNDRED FORTY-EIGHT and eleven  hundred  sixty-seven  of
 the  tax law, section four hundred one and article twelve-d of the vehi-
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 cle and traffic law, and section thirty-one of chapter fifty-six of  the
 laws of nineteen hundred ninety-three, (ii) all fees, fines or penalties
 collected  by the commissioner of transportation and the commissioner of
 motor  vehicles  pursuant  to  section  fifty-two, section three hundred
 twenty-six, section eighty-eight of the highway law, subdivision fifteen
 of section three hundred eighty-five of the  vehicle  and  traffic  law,
 section  two of part U1 of chapter sixty-two of the laws of two thousand
 three, subdivision (d) of section three hundred four-a, paragraph one of
 subdivision (a) and subdivision  (d)  of  section  three  hundred  five,
 subdivision six-a of section four hundred fifteen and subdivision (g) of
 section  twenty-one  hundred twenty-five of the vehicle and traffic law,
 section fifteen of this chapter, excepting  moneys  deposited  with  the
 state  on account of betterments performed pursuant to subdivision twen-
 ty-seven or subdivision thirty-five of section ten of the  highway  law,
 and  section one hundred forty-five of the transportation law, (iii) any
 moneys collected  by  the  department  of  transportation  for  services
 provided  pursuant to agreements entered into in accordance with section
 ninety-nine-r of the general municipal law, and (iv)  any  other  moneys
 collected  therefor  or  credited  or transferred thereto from any other
 fund, account or source.
   § 6. Paragraph (a) of subdivision 3  of  section  89-b  of  the  state
 finance law, as amended by section 5 of chapter 368 of the laws of 2019,
 is amended to read as follows:
   (a)  The  special obligation reserve and payment account shall consist
 (i) of all moneys required to be deposited in the dedicated highway  and
 bridge  trust  fund  pursuant  to the provisions of sections two hundred
 eighty-nine-e, three hundred one-j, five hundred fifteen, ELEVEN HUNDRED
 FORTY-EIGHT and eleven hundred sixty-seven of the tax law, section  four
 hundred  one  and  article  twelve-d of the vehicle and traffic law, and
 section thirty-one of chapter fifty-six of the laws of nineteen  hundred
 ninety-three, (ii) all fees, fines or penalties collected by the commis-
 sioner of transportation and the commissioner of motor vehicles pursuant
 to  section fifty-two, section three hundred twenty-six, section eighty-
 eight of the highway law, subdivision fifteen of section  three  hundred
 eighty-five  of  the  vehicle  and  traffic law, section fifteen of this
 chapter, excepting moneys deposited with the state on account of better-
 ments performed pursuant  to  subdivision  twenty-seven  or  subdivision
 thirty-five  of  section ten of the highway law, and section one hundred
 forty-five of the transportation law, (iii) any moneys collected by  the
 department  of  transportation  for services provided pursuant to agree-
 ments entered into in  accordance  with  section  ninety-nine-r  of  the
 general  municipal  law, and (iv) any other moneys collected therefor or
 credited or transferred thereto from any other fund, account or  source.
 § 7. Paragraph (a) of subdivision 3 of section 89-b of the state finance
 law,  as  amended  by  section 8 of part UU of chapter 59 of the laws of
 2018, is REPEALED.
   § 8. This act shall take effect April 1, 2023, provided, that:
   (a) section two of this act shall take effect April 1, 2024;
   (b) section three of this act shall take effect April 1, 2025;
   (c) section four of this act shall take effect April 1, 2026; and
   (d) the amendments to paragraph (a) of subdivision 3 of  section  89-b
 of  the  state  finance  law, made by section five of this act, shall be
 subject to the expiration and reversion of such  paragraph  pursuant  to
 section  13  of  part  U1 of chapter 62 of the laws of 2003, as amended,
 when upon such date the provisions of section six of this act shall take
 effect.