Amd SS11.00, 54.90 & 90.00, Loc Fin L; add S24, amd S6-l, Gen Muni L; amd S8, NYS Med Care FacFin Ag Act; amd
SS654 & 656, Priv Hous L; amd S237, V & T L; amd SS19-203, 19-212, 11-502,11-602, 11-603, 11-641, 11-1101 &
11-1102, add SS11-1119 & 11-1120, NYC Ad Cd; amd S303, addS308-a, County L; amd SS1 & 2, Chap 235 of 1952;
amd SS1846 & 1847, Tax L; amd SS121 & 4, St FinL; amd SS1 & 2, Chap 772 of 1966; amd S1803-a, RPT L; amd
SS2590-p, 3020 & 3612, Ed L
Enacts certain provisions relating to taxes in the city of New York; relates to certain periods of probable usefulness, interest rate exchange agreements and amortization of NYC bonds; provides authority for the NYC housing development corporation to acquire mortgage loans; relates to maximum fines for parking violations in such city and the towing threshold; relates to taxation of partnerships and partners engaged in mobile telecommunications services; allows increase in the enhanced 911 emergency telephone system surcharge; increases taxes on cigarettes and tobacco products; authorizes accelerated depreciation deductions with respect to certain property acquired after 9/10/01; makes technical corrections relating to the NYC school construction authority; and NYC school district and teachers.
STATE OF NEW YORK
________________________________________________________________________
S. 7783 A. 11817
SENATE - ASSEMBLY
June 20, 2002
___________
IN SENATE -- Introduced by COMMITTEE ON RULES -- read twice and ordered
printed, and when printed to be committed to the Committee on Rules
IN ASSEMBLY -- Introduced by COMMITTEE ON RULES -- read once and
referred to the Committee on Ways and Means
AN ACT to amend the local finance law, in relation to certain periods of
probable usefulness, interest rate exchange agreements of the city of
New York and amortization of bonds of such city; to amend the general
municipal law, in relation to the creation of certain not-for-profit
corporations by the city of New York; to amend the general municipal
law and the local finance law, in relation to cash sales of capital
improvements; to amend the New York state medical care facilities
finance agency act, in relation to assuring the continued payment of
rentals; and to amend the private housing finance law, in relation to
providing authority for the New York city housing development corpo-
ration to acquire mortgage loans made by the city of New York pursuant
to article 8-A of such law or to acquire a participation interest in
such mortgage loans and increasing the bonding authority of such
corporation (Part A); to amend the vehicle and traffic law and the
administrative code of the city of New York, in relation to the maxi-
mum fine for parking violations and the towing threshold in a city
with a population of one million or more persons (Part B); to amend
the administrative code of the city of New York, in relation to the
taxation of partnerships and partners engaged in providing mobile
telecommunications services under the general corporation tax, banking
corporation tax and unincorporated business tax, and the utility tax
on providers of mobile telecommunications services (Part C); to amend
the county law, in relation to authorizing any city having a popu-
lation of one million or more to increase the enhanced 911 emergency
telephone system surcharge (Part D); to amend chapter 235 of the laws
of 1952, relating to enabling any city of the state having a popu-
lation of one million or more to adopt, and amend local laws, imposing
certain specified types of taxes on cigarettes, cigars and smoking
tobacco which the legislature has or would have power and authority to
impose, to provide for the review of such taxes, and to limit the
application of such local laws, in relation to authorizing an increase
in the rate of tax on cigarettes; to amend the tax law, in relation to
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD16528-05-2
S. 7783 2 A. 11817
seizure and forfeiture of certain cigarettes and of vehicles used to
transport unstamped or unlawfully stamped packages of cigarettes; and
to amend the state finance law, in relation to the imposition of ciga-
rette taxes (Part E); to amend the county law, in relation to the
establishment of city wireless surcharges (Part F); to amend chapter
772 of the laws of 1966, relating to the imposition of new taxes on
general, financial and transportation corporations and unincorporated
businesses in a city having a population of one million or more, in
relation to authorizing the local legislative body of any such city to
disallow, for purposes of such taxes, certain additional accelerated
depreciation deductions with respect to certain property acquired
after September 10, 2001, allowed by the amendments to the internal
revenue code made by section 101 of public law 107-147 (Part G); to
amend the real property tax law, in relation to the determination of
adjusted base proportions in special assessing units that are cities
for the fiscal year 2003 (Part H); to amend the education law, in
relation to making technical amendments pertaining to the New York
city school construction authority (Part I); to amend the education
law, in relation to disciplinary procedures for employees or titles in
the city school district of the city of New York that are or were
covered by any memorandum of agreement executed by such city school
district and the united federation of teachers (Part J); and to amend
the education law, in relation to aid for teachers of tomorrow
recruitment and retention program, and providing for the repeal of
such provisions upon expiration thereof (Part K)
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act enacts into law major components of legislation
2 which are necessary to implement the state fiscal plan for the 2002-2003
3 state fiscal year. Each component is wholly contained within a Part
4 identified as Parts A through K. The effective date for each particular
5 provision contained within such Part is set forth in the last section of
6 such Part. Any provision in any section contained within a Part, includ-
7 ing the effective date of the Part, which makes reference to a section
8 "of this act", when used in connection with that particular component,
9 shall be deemed to mean and refer to the corresponding section of the
10 Part in which it is found. Section three of this act sets forth the
11 general effective date of this act.
12 PART A
13 Section 1. Short title. This act shall be known and may be cited as
14 the "New York city debt modernization act of 2002".
15 § 2. Subdivision 8 of paragraph a of section 11.00 of the local
16 finance law, as amended by chapter 614 of the laws of 1949, is amended
17 to read as follows:
18 8. Rapid transit railroads and mass transit capital program. The
19 acquisition or construction of a rapid transit railroad, whether or not
20 including the acquisition of land or original furnishings, equipment,
21 machinery or apparatus other than rolling stock, or the replacement of
22 such equipment, machinery or apparatus, forty years[, except for the
23 city of New York; for the city of New York, fifty years, and on or after
24 January first, nineteen hundred fifty, forty years, as authorized by
S. 7783 3 A. 11817
1 section two of article eight of the state constitution]; the recon-
2 struction of or addition to a rapid transit railroad, forty years; the
3 acquisition of rolling stock for a rapid transit railroad, [twenty-five]
4 thirty years; the replacement of such furnishings, [ten] fifteen years.
5 § 3. Subdivision 11 of paragraph a of section 11.00 of the local
6 finance law, as amended by chapter 699 of the laws of 1970, is amended
7 to read as follows:
8 11. Buildings. The acquisition or construction of buildings not
9 included in any other subdivision hereof, whether or not including grad-
10 ing or improvement of the site, original furnishings, equipment, machin-
11 ery or apparatus required for the purposes for which such buildings are
12 to be used, as follows:
13 (a) Class "A" (fireproof and certain fire resistant) buildings.
14 (1) Buildings, the walls of which are constructed of brick, stone,
15 concrete, metal or other incombustible material, and in which there are
16 no wooden beams or lintels, except wood glue laminated structural
17 members, and in which the floors, roofs, stairhalls, and other means of
18 vertical communication between floors and their enclosures are built
19 entirely of brick, stone, metal or other incombustible materials, and in
20 which no woodwork or other inflammable material is used in any of the
21 rough partitions, floor or ceiling structures, or
22 (2) Buildings, not more than one story above the ground, the outer
23 walls of which are constructed of brick, stone, concrete, metal, stucco
24 or other fire-resisting material and which are to be used as school
25 houses by school districts wholly outside of a city, thirty years.
26 (b) Class "B" (fire-resistant) buildings. Buildings, the outer walls
27 of which are constructed of brick, stone, concrete, metal, stucco or
28 other fire-resisting material, [twenty] twenty-five years.
29 (c) Class "C" buildings. Buildings which are neither class "A" [or]
30 nor class "B", as defined in items (a) and (b) above, including any such
31 building which is rebuilt or altered so that it, together with any addi-
32 tion or vertical or other extension, is not fire-proof or fire-resist-
33 ing, as thus defined, fifteen years.
34 § 4. Subdivision 12 of paragraph a of section 11.00 of the local
35 finance law, as amended by chapter 636 of the laws of 1951, subparagraph
36 1 of item (a) as amended by chapter 764 of the laws of 1969, is amended
37 to read as follows:
38 12. Additions to or conversion of buildings. (a) (1) The construction
39 of an addition or additions to or the reconstruction of a class "A"
40 building, [twenty] whether or not such construction or reconstruction
41 includes grading or improvement of the site, twenty-five years, except
42 as hereinafter provided; the conversion of a class "B" or class "C"
43 building into a class "A" building, [twenty] whether or not such conver-
44 sion includes grading or improvement of the site, twenty-five years. If
45 indebtedness has been contracted or is to be contracted with a maximum
46 maturity of over [twenty] twenty-five years, but not to exceed thirty
47 years, to finance the cost of acquisition or construction of a class "A"
48 building and if more than [twenty] twenty-five annual installments of
49 principal on the indebtedness evidenced or to be evidenced by bonds or
50 notes have not matured, then the foregoing [twenty-year] twenty-five
51 year period of probable usefulness for the construction of an addition
52 to such class "A" building shall be increased by the number of years
53 over [twenty] twenty-five as there are unmatured annual installments of
54 principal on such indebtedness which has been or is to be contracted for
55 the class "A" building; provided that such addition is to be constructed
56 to meet the construction standards of the class "A" building to which it
S. 7783 4 A. 11817
1 is an addition. The maximum maturity of such indebtedness for the class
2 "A" building shall be measured from the date of the bonds or from the
3 date of the first bond anticipation note issued in anticipation of such
4 bonds, whichever is the earlier.
5 (2) The construction of an addition or additions to or the recon-
6 struction of a class "B" building or the conversion of a class "C"
7 building into a class "B" building, whether or not such construction,
8 reconstruction or conversion includes grading or improvement of the
9 site, fifteen years.
10 (3) The construction of an addition or additions to or the recon-
11 struction of a class "C" building, whether or not such construction or
12 reconstruction includes grading or improvement of the site, ten years.
13 (b) The periods of probable usefulness set forth in item (a) above
14 shall include original furnishings, equipment, machinery or apparatus
15 required for the purposes for which such additions to such buildings or
16 for which such reconstructed or converted buildings are to be used.
17 (c) A building which is to be attached to an existing building or
18 buildings shall be deemed to be a new building and not an addition if
19 the probable useful life thereof is not dependent upon the useful life
20 of such existing building or buildings.
21 (d) The terms "class 'A' building," "class 'B' building" and "class
22 'C' building," as used in this subdivision, shall mean such buildings as
23 they are described in subdivision eleven of this paragraph.
24 § 5. Paragraph a of section 11.00 of the local finance law is amended
25 by adding a new subdivision 41-e to read as follows:
26 41-e. Housing New York program act. The carrying out, financing or
27 refinancing by the city of New York, by loans or otherwise, of programs
28 and activities designed to achieve the purposes set forth in the opening
29 paragraph and paragraphs (a) through (f) of subdivision two of section
30 four of section one of chapter thirty-two of the laws of nineteen
31 hundred eighty-six, as amended, such section one constituting the hous-
32 ing New York program act, thirty years.
33 § 6. Subdivision 63 of paragraph a of section 11.00 of the local
34 finance law, as amended by chapter 570 of the laws of 1995, is amended
35 to read as follows:
36 63. [Abatement of nuisances and other conditions] Repair or demolition
37 of buildings. The repairing or demolishing of a [multiple dwelling,]
38 building or part thereof, [pursuant to section three hundred five of the
39 multiple residence law, or section three hundred nine of the multiple
40 dwelling law, or section seven hundred seventy-eight of the real proper-
41 ty actions and proceedings law,] ten years.
42 § 7. Subdivision 1 of paragraph a of section 90.00 of the local
43 finance law, as amended by section 113 of part B of chapter 436 of the
44 laws of 1997, is amended to read as follows:
45 1. A municipality, school district or district corporation may issue
46 serial bonds to refund bonds issued on or after January first, nineteen
47 hundred thirty-nine, other than bonds issued to redeem notes, certif-
48 icates or other evidences of indebtedness issued prior to January first,
49 nineteen hundred thirty-nine, in anticipation of such bonds. The last
50 installment of such refunding bonds issued to refund bonds issued pursu-
51 ant to the social services law, or the former social welfare law, or the
52 former public welfare law, for the purpose of safety net assistance, as
53 defined in such laws, shall mature within ten years after the date of
54 issue of the bonds to be refunded. In all other cases the last install-
55 ment of such refunding bonds shall mature not later than the expiration
56 of the maximum period of probable usefulness permitted by law at the
S. 7783 5 A. 11817
1 time of the issuance of the bonds to be refunded or the refunding bonds
2 for the object or purpose for which [such] the bonds to be refunded were
3 issued. Such period shall be computed from the date of issuance of the
4 bonds to be refunded or from the date of issuance of the first bond
5 anticipation note issued in anticipation of such bonds, whichever date
6 is the earlier.
7 § 8. Section 54.90 of the local finance law, as added by chapter 413
8 of the laws of 1991, paragraph a as separately amended by chapters 139
9 and 158 of the laws of 2000 and paragraph c as amended by chapter 179 of
10 the laws of 1996, is amended to read as follows:
11 § 54.90 Issuance of bonds or notes with variable rates of interest.
12 a. Whenever in the judgement of the finance board the interest of a
13 municipality would be served thereby, the municipality may issue bonds
14 or notes, on or before July fifteenth, two thousand three, with interest
15 rates that vary in accordance with a formula or procedure and are
16 subject to a maximum rate of interest set forth or referred to in the
17 bonds or notes and may provide the holders thereof with such rights to
18 require the municipality or other persons to purchase such bonds or
19 notes or renewals thereof from the proceeds of the resale thereof or
20 otherwise from time to time prior to the final maturity of such bonds or
21 notes as the finance board may determine and the municipality may
22 resell, at any time prior to final maturity, any such bonds or notes
23 acquired as a result of the exercise of such rights; provided, however,
24 that at no time shall the total principal amount of bonds and notes
25 issued pursuant to this paragraph (other than bonds and notes bearing
26 interest at rates and for periods of time that are specified at issu-
27 ance) exceed ten percent of the limit prescribed by section 104.00 of
28 this chapter.
29 Notwithstanding the foregoing, the holders of bonds or notes sold
30 pursuant to this paragraph shall not be provided with the right to
31 require the municipality or other persons to repurchase the bonds or
32 notes prior to the final maturity thereof unless the municipality has
33 entered into one or more letter of credit agreements or liquidity facil-
34 ity agreements for the express purpose of such sale, which agreements
35 the municipality is hereby authorized to enter into, and which shall
36 require a financially responsible party or parties to the agreement or
37 agreements, as defined by section 2.00 of this chapter, other than the
38 municipality to purchase all or any portion of such bonds or notes
39 tendered by the holders thereof for repurchase prior to the final matu-
40 rity of such bonds or notes until such time as the right of the holders
41 of such bonds or notes to require repurchase of such bonds or notes
42 prior to the final maturity thereof shall cease.
43 Notwithstanding the foregoing, whenever in the judgement of the
44 finance board of the city of New York the interest of such city would be
45 served thereby, the city of New York may without further approval issue
46 bonds or notes, on or before July fifteenth, two thousand three, with
47 interest rates that vary in accordance with a formula or procedure and
48 are subject to a maximum rate of interest set forth or referred to in
49 the bonds or notes and may provide the holders thereof with such rights
50 to require the city or other persons to purchase such bonds or notes or
51 renewals thereof from the proceeds of the resale thereof or otherwise
52 from time to time prior to the final maturity of such bonds or notes as
53 the finance board of the city of New York may determine and the city may
54 resell, at any time prior to final maturity, any such bonds or notes
55 acquired as a result of the exercise of such rights; provided, however,
56 that at no time shall the total principal amount of bonds and notes
S. 7783 6 A. 11817
1 issued by the city of New York pursuant to this paragraph (other than
2 bonds and notes (1) bearing interest at rates and for periods of time
3 that are specified without reference to future events or contingencies,
4 or (2) described in section 136.00 of this article) exceed [twenty]
5 twenty-five percent of the limit prescribed by section 104.00 of this
6 chapter.
7 b. To facilitate the marketing of any issue of bonds and notes issued
8 pursuant to this section, such municipality may, notwithstanding any
9 limitation on private sale of bonds and notes provided by law, and
10 subject to rules promulgated by the state comptroller governing such
11 sales: (i) arrange for the underwriting of such bonds and notes at
12 private sale through negotiated agreement, compensation for such under-
13 writing to be provided by negotiated fee or by sale of such bonds and
14 notes to an underwriter at a price of less than the sum of par value of,
15 and accrued interest on, such obligations; or (ii) arrange for the
16 private sale of such bonds and notes through negotiated agreement,
17 compensation for such sale to be provided by negotiated fee, if
18 required. The cost of such underwriting or private placement shall be
19 deemed a preliminary cost for the purposes of section 11.00 of this
20 chapter.
21 c. The finance board of such municipality is hereby authorized and
22 empowered, in conformance with paragraphs c through g of section 168.00
23 of this chapter, to enter into such agreements as it deems reasonable
24 and appropriate to facilitate the issuance, sale, resale and repurchase
25 of such bonds and notes, including but not limited to agreements with
26 financially responsible third parties for the remarketing or repurchase
27 of such bonds and notes in accordance with terms and conditions deter-
28 mined by such finance board, provided, however, that no such agreement
29 shall cause or have the effect of causing any annual principal install-
30 ment of an issue of serial bonds to be more than fifty per centum in
31 excess of the smallest prior installment unless the finance board has
32 determined to provide for substantially level or declining annual debt
33 service payments in accordance with paragraph d of section 21.00 of this
34 chapter, in which case no such agreement shall cause or have the effect
35 of causing any annual principal installment of an issue to vary from the
36 amounts determined by the finance board to be required to comply with
37 such paragraph at the time of issuance of the bonds or notes. The
38 finance board may, by resolution, delegate its power to contract pursu-
39 ant to this section to the chief fiscal officer, as defined in section
40 2.00 of this chapter, of such public body in which event the chief
41 fiscal officer shall exercise such power until the finance board, by
42 resolution, shall elect to reassume the same. For purposes of this
43 section, the finance board of the city of New York shall mean the mayor
44 and the city comptroller.
45 d. 1. On or before July fifteenth, two thousand three the mayor and
46 comptroller of the city of New York may:
47 (i) enter into interest rate exchange or similar agreements with any
48 person under such terms and conditions as the mayor and comptroller may
49 determine, including provisions as to default or early termination and
50 indemnification by the city or any other party thereto for loss of bene-
51 fits as a result thereof;
52 (ii) procure insurance, letters of credit or other credit enhancement
53 with respect to such agreements;
54 (iii) provide security for the payment or performance of its obli-
55 gations with respect to agreements described in item (i) of this subdi-
56 vision from such sources and with the same effect as is authorized by
S. 7783 7 A. 11817
1 applicable law with respect to security for its bonds, notes or other
2 obligations, provided, however, that any payment or performance of obli-
3 gations with respect to agreements described in item (i) of this subdi-
4 vision in connection with debt obligations which carry the full faith
5 and credit of the city shall be subject to appropriation; and
6 (iv) modify, amend, or replace such agreements.
7 2. For the purposes of this paragraph:
8 (i) "Interest rate exchange or similar agreement" shall mean a written
9 contract entered into in connection with the issuance of city debt, or
10 in connection with such city debt already outstanding, with a counter-
11 party to provide for an exchange of payments based upon fixed and/or
12 variable interest rates, and shall be for exchanges in currency of the
13 United States of America only.
14 (ii) "Excluded agreements" shall mean the total notional amount of
15 interest rate exchange or similar agreements entered into for the
16 purpose of reducing or eliminating a situation of risk or exposure under
17 an existing interest rate exchange or similar agreement, including, but
18 not limited to a counterparty downgrade, default, or other actual or
19 potential economic loss.
20 (iii) Interest rate exchange; limitations. Any interest rate exchange
21 or similar agreements entered into pursuant to item (i) of subdivision
22 one of this paragraph shall be subject to the following limitations:
23 (A) the counterparty thereto shall have credit ratings from at least
24 one nationally recognized statistical rating agency that is within the
25 two highest investment grade categories and ratings which are obtained
26 from any other nationally recognized statistical rating agencies shall
27 also be within the three highest investment grade categories, or the
28 payment obligations of the counterparty shall be unconditionally guaran-
29 teed by an entity with such credit ratings;
30 (B) the written contract shall require that should the rating: (I) of
31 the counterparty, if its payment obligations are not unconditionally
32 guaranteed by another entity, or (II) of the entity unconditionally
33 guaranteeing its payment obligations, if so secured, fall below the
34 rating required by clause (A) of this item, that the obligations of such
35 counterparty shall be fully and continuously collateralized by direct
36 obligations of, or obligations the principal and interest on which are
37 guaranteed by, the United States of America, or any agency thereof with
38 a net market value of at least one hundred two percent of the net market
39 value of the contract to the authorized issuer and such collateral shall
40 be deposited with the authorized issuer or an agent thereof;
41 (C) the total notional amount of all interest rate exchange or similar
42 agreements shall not exceed an amount equal to twenty-five percent of
43 the limit prescribed by section 104.00 of this chapter; provided, howev-
44 er, that such total notional amount shall not include any excluded
45 agreements;
46 (D) no interest rate exchange or similar agreement shall have a matu-
47 rity exceeding the maturity of related city debt; and
48 (E) each interest rate exchange or similar agreement shall be subject
49 to an independent finding that its terms and conditions reflect a fair
50 market value of such agreement as of the date of its execution, regard-
51 less of whether such agreement was solicited on a competitive or negoti-
52 ated basis.
53 3. (i) Prior to authorizing the approval of any contract for interest
54 rate exchange or similar agreement pursuant to subdivision one of this
55 paragraph, the finance board of the city shall adopt guidelines for the
S. 7783 8 A. 11817
1 use of interest rate exchange or similar agreements which shall include,
2 but not be limited to the following:
3 (A) the conditions under which such contracts can be entered into;
4 (B) the methods by which such contracts are to be solicited and
5 procured;
6 (C) the form and content such contracts shall take;
7 (D) the aspects of risk exposure associated with such contracts;
8 (E) standards and procedures for counterparty selection;
9 (F) standards for the procurement of credit enhancement, liquidity
10 facilities, or the setting aside of reserves in connection with such
11 contracts consistent with the limitations of section 168.00 of this
12 chapter;
13 (G) provisions for collateralization or other requirements for secur-
14 ing the financial interest in such contracts;
15 (H) the long-term implications associated with entering into such
16 agreements, such as costs of borrowing, historical trends, use of capac-
17 ity for variable rate bonds and related credit enhancements, and any
18 potential impact on the future ability to call bonds, including opportu-
19 nities to refund related debt obligations, and similar considerations;
20 (I) the methods to be used to reflect such contracts in the city's
21 financial statements;
22 (J) financial monitoring and periodic assessment of such contracts by
23 the city; and
24 (K) such other matters relating thereto as the finance board shall
25 deem necessary and proper.
26 (ii) The city shall issue a quarterly report to the director of the
27 budget, the chairs of the senate finance committee and the assembly ways
28 and means committee, and the state comptroller, on or before the
29 fifteenth day of each month following the end of each such quarter in
30 which it enters into or continues to be a party to a contract for inter-
31 est rate exchange or similar agreement, which shall list all such
32 contracts entered into pursuant to this section and shall include, but
33 not be limited to, the following information for each such contract, as
34 applicable:
35 (A) a description of the contract, including a summary of the terms
36 and conditions, rates, maturity, the estimated market value of each
37 agreement, and other provisions thereof and the method of procurement;
38 (B) any amounts which were required to be paid and received, and any
39 amounts which actually were paid and received thereunder;
40 (C) any credit enhancement, liquidity facility or reserves associated
41 therewith including an accounting of all costs and expenses incurred,
42 whether or not in conjunction with the procurement of credit enhancement
43 or liquidity facilities;
44 (D) a description of each counterparty;
45 (E) an assessment of the counterparty risk, termination risk, and
46 other risks associated therewith; and
47 (F) such report shall include a copy of the guidelines required by
48 item (i) of this subdivision in the quarter after they are adopted or
49 subsequently modified.
50 § 9. The general municipal law is amended by adding a new section 24
51 to read as follows:
52 § 24. Corporation for the benefit of the city of New York. 1.
53 Notwithstanding any provision of state or local law, the city of New
54 York is hereby authorized to provide for the creation of a single not-
55 for-profit corporation subject to section fourteen hundred eleven of the
56 not-for-profit corporation law, except to the extent that such section
S. 7783 9 A. 11817
1 is inconsistent with this section, which corporation shall have the
2 purpose, among others, of financing or refinancing costs arising from or
3 related to the closing of Freshkills landfill.
4 2. Such corporation shall have the authority to issue and sell one or
5 more series or classes of bonds, notes and other obligations from time
6 to time on behalf of the city of New York to finance or refinance costs
7 relating to the closure of the Freshkills Landfill. Such bonds, notes
8 and other obligations shall not constitute a debt or indebtedness of
9 such city and, together with the income therefrom, shall be exempt from
10 taxation, except for transfer and estate taxes.
11 3. The incorporation of TSASC, Inc. under section fourteen hundred
12 eleven of the not-for-profit corporation law, and the approval of arti-
13 cles of incorporation and bylaws for such corporation, are hereby rati-
14 fied and shall be deemed to meet the requirements of this section,
15 notwithstanding that such requirements were enacted after such creation
16 and approval, and such corporation shall be treated for all purposes as
17 if it had been formed by and pursuant to the provisions of this section.
18 TSASC, Inc. shall be deemed to be the corporation formed pursuant to the
19 authorization provided in subdivision one of this section.
20 4. The provisions of this section shall not be deemed or construed to
21 alter or impair any other power of the city of New York to provide for
22 the creation of not-for-profit corporations pursuant to any other appli-
23 cable provision of law, but shall be in addition to any other such
24 power.
25 § 10. Subdivision 2 of section 6-l of the general municipal law, as
26 amended by chapter 117 of the laws of 1995, is amended to read as
27 follows:
28 2. Notwithstanding any other provision of this chapter, upon the cash
29 sale by a municipal corporation, fire district or school district of a
30 capital improvement, as defined in section six-c of this chapter, for
31 the cost of which obligations were issued pursuant to the local finance
32 law, and when all or part of such indebtedness is outstanding at the
33 time of such sale, a mandatory reserve fund shall be established for the
34 purpose of retiring such obligations, or, as an additional alternative,
35 paying principal of, or redemption premiums in connection with such
36 obligations or other obligations of at least equal weighted average
37 life; provided however, that [during the six-year period commencing July
38 first, nineteen hundred ninety-one], if the proceeds of the sale are
39 used or set aside to be used (i) to pay or provide for the construction,
40 reconstruction, acquisition or installation of capital improvements or
41 equipment, as defined in section six-c of this chapter, or (ii) for the
42 payment of principal of [or interest on], or redemption premiums in
43 connection with, any outstanding obligations issued by the municipal
44 corporation, fire district or school district to finance such capital
45 improvements or equipment, in an amount not less than the lesser of such
46 proceeds or the principal amount of the indebtedness outstanding on the
47 capital improvement sold, then such fund need not be established;
48 provided, however, that if such amount to be so used, together with any
49 other amounts so used pursuant to this sentence in the same fiscal year
50 of such municipal corporation, fire district or school district, would
51 exceed one percent of the limit prescribed by section 104.00 of the
52 local finance law, then such fund shall nevertheless be established; and
53 provided further, that a municipal corporation, fire district or school
54 district shall within thirty days after the use of such proceeds pursu-
55 ant to clause (i) herein, file a report with the state comptroller iden-
56 tifying: (a) the asset sold, (b) the amount of net proceeds from such
S. 7783 10 A. 11817
1 sale, (c) the amount to be paid or provided pursuant to such clause (i),
2 and (d) the capital improvements or equipment to be so paid for or
3 provided. When a municipal corporation, fire district or school district
4 has outstanding indebtedness incurred to finance the cost of such a
5 capital improvement, federal and state aid received on account of such
6 improvement, to the extent that it is not applied directly to the
7 payment of a part of the cost of such improvement or to retire indebt-
8 edness issued in anticipation of such aid, shall likewise be deposited
9 in a reserve fund for the purpose of retiring either such obligations
10 or, as an additional alternative, other obligations of at least equal
11 weighted average life. The entire proceeds of the sale or such state or
12 federal aid received, as the case may be, shall be deposited to the
13 credit of such fund, provided however, that if the aggregate amount
14 thereof shall exceed the principal of such indebtedness due or to become
15 due, or if, when all such outstanding obligations have been retired, any
16 moneys remain unexpended in the reserve fund, such excess moneys may be
17 used for any lawful municipal or district purpose, as the case may be.
18 The provisions of this section shall not apply in a case where a
19 provision of any other law requires that the proceeds of the sale of a
20 capital improvement shall be deposited in a reserve fund established for
21 the purpose of retiring outstanding obligations.
22 § 11. Paragraph (b) of subdivision 2 of section 8 of section 1 of
23 chapter 392 of the laws of 1973, constituting the New York state medical
24 care facilities finance agency act, as amended by chapter 575 of the
25 laws of 1994, is amended to read as follows:
26 (b) To assure the continued payment of rentals due under one or more
27 leases or subleases entered into with a municipality pursuant to section
28 five, the agency shall [annually, not later than November first in each
29 year,] make and deliver to the appropriate chief fiscal officer of the
30 municipality a certificate setting forth the amount, if any, due and not
31 paid [for the preceding fiscal year of] to the agency under such lease
32 or sublease with such municipality within five days of the due date. In
33 the event of the failure or inability of the municipality to pay over
34 the stated amount to the agency [on or before December first of the same
35 year] within ten days of receipt of such certificate, the agency shall
36 forthwith make and deliver to the comptroller of the state of New York,
37 the director of the budget of the state of New York and the [commission-
38 ers] commissioner of health [and social services] of the state of New
39 York a further certificate restating the amount due and not paid, and
40 such amount shall be paid over to the agency, upon the warrant of the
41 comptroller on vouchers certified as correct by the commissioner of
42 health [and approved by the commissioner of social services], out of the
43 next payment of state aid to such municipality pursuant to section 368-a
44 of the social services law or funds appropriated for the purpose of
45 making payment on behalf of such municipality pursuant to section 367-b
46 of such law. To the extent any such payments to the agency are made from
47 state aid payments pursuant to section 368-a of such law, the amount of
48 such payments shall be deducted from the corresponding apportionment of
49 state aid otherwise credited to such municipality, and the state shall
50 not be obligated to pay, nor shall such municipality be entitled to
51 receive, by virtue of such deduction, any additional or increased appor-
52 tionment or payment of state aid pursuant to section 368-a of the social
53 services law. To the extent any such payments to the agency are made
54 from funds appropriated for the purpose of making payments on behalf of
55 such municipality pursuant to section 367-b of such law, the amount of
56 such payments may be deducted from any other payments of state assist-
S. 7783 11 A. 11817
1 ance to such municipality under the social services law and the state
2 shall not be obligated to pay, nor shall the municipality be entitled to
3 receive, by virtue of such deduction, any additional or increased appor-
4 tionment or payment of such state assistance, provided, however, that
5 nothing contained in this sentence shall be construed to limit, impair,
6 impede, or otherwise adversely affect in any manner the rights or reme-
7 dies of the purchasers and holders and owners of any bonds or notes of
8 the state or any agency or instrumentality, public benefit corporation
9 or political subdivision thereof under which such purchasers and holders
10 and owners have any right of payment of such bonds or notes by recourse
11 to such state assistance monies.
12 § 12. Section 654 of the private housing finance law is amended by
13 adding a new subdivision 23-g to read as follows:
14 23-g. Subject to the provisions of any contract with noteholders and
15 bondholders, to acquire mortgage loans made by the city of New York
16 pursuant to article eight-A of this chapter or to acquire a partic-
17 ipation interest in such mortgage loans.
18 § 13. Paragraph c of subdivision 1 of section 656 of the private hous-
19 ing finance law, as amended by chapter 187 of the laws of 2000, is
20 amended to read as follows:
21 c. No bonds or notes of the corporation shall be issued if upon such
22 issuance the aggregate principal amount of bonds and notes of the corpo-
23 ration then outstanding exceeds the lesser of three billion [one] eight
24 hundred [fifty] million dollars or such amount as would cause the maxi-
25 mum capital reserve fund requirement to exceed eighty-five million
26 dollars; provided that, in determining such aggregate principal amounts
27 there shall be deducted (i) all sums then available for the payment of
28 such bonds or notes either at maturity or through the operation of a
29 sinking fund; (ii) the aggregate principal amount of outstanding bonds
30 issued (a) to refund notes and (b) to refund bonds, theretofore issued
31 and then outstanding; and (iii) the aggregate principal amount of
32 outstanding notes issued to renew notes theretofore issued and then
33 outstanding. The provisions of the prior sentence notwithstanding, the
34 corporation shall not issue bonds if such issuance shall cause the maxi-
35 mum reserve fund requirement to exceed thirty million dollars unless
36 prior to such issuance the senate and assembly shall have adopted a
37 concurrent resolution passed by the votes of a majority of all the
38 members elected to each such house and, subsequent thereto, the governor
39 shall evidence in writing the governor's agreement with such resolution
40 to the chairperson of the corporation, which resolution shall be in full
41 force and effect on the date of issuance of the bonds, permitting the
42 maximum capital reserve fund requirement to equal or exceed the amount
43 of the maximum capital reserve fund requirement which would be effective
44 upon the issuance of the bonds in question, but in no event, shall the
45 maximum capital reserve fund requirement exceed eighty-five million
46 dollars.
47 § 14. Separability. If any clause, sentence, paragraph, section or
48 part of this act shall be adjudged by any court of competent jurisdic-
49 tion to be invalid, such judgment shall not affect, impair or invalidate
50 the remainder thereof, but shall be confined in its operation to the
51 clause, sentence, paragraph, section or part thereof directly involved
52 in the controversy in which such judgment shall have been rendered.
53 § 15. This act shall take effect immediately; provided, however, that
54 actions related to TSASC, Inc. that were taken before the effective date
55 of this act shall be given legal effect consistent with section 24 of
56 the general municipal law, as added by section nine of this act.
S. 7783 12 A. 11817
1 PART B
2 Section 1. Paragraph (a) of subdivision 2 of section 237 of the vehi-
3 cle and traffic law, as amended by chapter 782 of the laws of 1990, is
4 amended to read as follows:
5 (a) parking violations in accordance with a schedule of monetary fines
6 and penalties, provided however, that monetary penalties shall not
7 exceed fifty dollars for each parking violation other than (i) in a city
8 with a population of one million or more, violations committed in spaces
9 where stopping or standing is prohibited for which monetary penalties
10 shall not exceed one hundred dollars and, (ii) handicapped parking
11 violations for which monetary penalties shall not exceed one hundred
12 fifty dollars; and
13 § 2. Subdivision b of section 19-203 of the administrative code of the
14 city of New York is amended to read as follows:
15 b. To provide for penalties other than imprisonment for parking
16 violations, provided however, that monetary penalties shall not exceed
17 fifty dollars for each parking violation, provided that monetary penal-
18 ties shall not exceed one hundred dollars for each parking violation
19 committed in a space where stopping or standing is prohibited and
20 provided, further, that monetary penalties shall not exceed one hundred
21 fifty dollars for each handicapped parking violation;
22 § 3. Section 19-212 of the administrative code of the city of New
23 York, as amended by local law number 58 of the city of New York for the
24 year 1993, is amended to read as follows:
25 § 19-212 Limitation on removal of motor vehicles for purposes of
26 satisfying parking violation judgments. Notwithstanding any other
27 provision of law, [on and after January first, nineteen hundred ninety-
28 four,] a motor vehicle shall not be removed from any street or other
29 public area solely for the purpose of satisfying an outstanding judgment
30 or judgments for parking violations against the owner unless the total
31 amount of such judgment or judgments, including interest, is greater
32 than [(1) the maximum fines which the parking violations bureau may
33 impose pursuant to the vehicle and traffic law for two parking
34 violations, plus (2) the maximum penalties that would accrue for failure
35 to respond to a notice of parking violation pursuant to section 19-211
36 for two parking violations, plus (3) the amount of any surcharge which
37 might be imposed for two parking violations; and for which interest has
38 begun to accrue after entry of judgment] two hundred thirty dollars.
39 The provisions of this section shall not be construed to prohibit the
40 removal of a motor vehicle which is illegally parked, stopped or stand-
41 ing.
42 § 4. This act shall take effect immediately.
43 PART C
44 Section 1. Subdivision (a) of section 11-502 of the administrative
45 code of the city of New York, as amended by chapter 625 of the laws of
46 1996, is amended to read as follows:
47 (a) General. An unincorporated business means any trade, business,
48 profession or occupation conducted, engaged in or being liquidated by an
49 individual or unincorporated entity, including a partnership, a fiduci-
50 ary, a corporation in liquidation or an unincorporated organization that
51 has made the election permitted under paragraph (b) of subdivision one
52 of section 11-602 of this title (but only for the period during which
53 such election is in effect), but not including any entity subject to tax
S. 7783 13 A. 11817
1 under chapter six of this title and not including any entity doing an
2 insurance business as a member of the New York insurance exchange
3 described in paragraph one of subsection (b) of section six thousand two
4 hundred one of the insurance law. Unincorporated businesses subject to
5 tax under a local law of the city imposing a tax on utilities shall not
6 be subject to tax under this chapter; provided, however, that unincorpo-
7 rated businesses, other than (1) utility businesses subject to the
8 supervision of the state department of public service and (2) for taxa-
9 ble years beginning on or after August first, two thousand two, utili-
10 ties as defined in subdivision six of section 11-1101 of this title,
11 which are subject to tax under a local law of the city imposing a tax on
12 vendors of utility services shall be subject to tax under this chapter
13 on that percentage of their entire net income allocable to the city
14 under section 11-508 of this chapter which their receipts other than
15 those taxable under such local law taxing vendors of utility services is
16 of their total receipts. If an individual or an unincorporated entity
17 carries on wholly or partly in the city two or more unincorporated busi-
18 nesses, all such businesses shall be treated as one unincorporated busi-
19 ness for the purposes of this chapter. For purposes of this chapter, an
20 unincorporated entity shall be treated as carrying on any trade, busi-
21 ness, profession or occupation carried on in whole or in part in the
22 city by any other unincorporated entity in which the first unincorporat-
23 ed entity owns an interest, and the ownership by an unincorporated enti-
24 ty of an interest in another unincorporated entity that is not carrying
25 on any trade, business, profession, or occupation in whole or in part in
26 the city shall not be deemed the conduct of an unincorporated business
27 by the first unincorporated entity. Notwithstanding anything to the
28 contrary in the preceding sentence, for taxable years beginning on or
29 after August first, two thousand two, an unincorporated business that is
30 a partner in a partnership subject to tax under a local law of the city
31 imposing a tax on utilities, as defined in subdivision six of section
32 11-1101 of this title, shall not be considered to be carrying on the
33 trade, business, profession or occupation carried on by such partner-
34 ship.
35 § 2. Subdivision 8 of section 11-602 of the administrative code of the
36 city of New York is amended by adding a new paragraph (a-1) to read as
37 follows:
38 (a-1) Notwithstanding any other provision of this subchapter, for
39 taxable years beginning on or after August first, two thousand two, in
40 the case of a taxpayer that is a partner in a partnership subject to the
41 tax imposed by chapter eleven of this title as a utility, as defined in
42 subdivision six of section 11-1101 of such chapter, entire net income
43 shall not include the taxpayer's distributive or pro rata share for
44 federal income tax purposes of any item of income, gain, loss or
45 deduction of such partnership, or any item of income, gain, loss or
46 deduction of such partnership that the taxpayer is required to take into
47 account separately for federal income tax purposes.
48 § 3. Paragraph (a) of subdivision 4 of section 11-603 of the adminis-
49 trative code of the city of New York, as amended by chapter 515 of the
50 laws of 1991, is amended to read as follows:
51 (a) Corporations subject to tax under subchapter three of this chapter
52 or under chapter eleven of this title, any trust company organized under
53 a law of this state all of the stock of which is owned by not less than
54 twenty savings banks organized under a law of this state, bank holding
55 companies filing a combined return in accordance with subdivision (f) of
56 section 11-646 of this chapter, housing companies organized and operat-
S. 7783 14 A. 11817
1 ing pursuant to the provisions of article two of the private housing
2 finance law, housing development fund companies organized pursuant to
3 the provisions of article eleven of the private housing finance law,
4 corporations described in section three of the tax law, a corporation
5 principally engaged in the operation of marine vessels whose activities
6 in the city are limited exclusively to the use of property in interstate
7 or foreign commerce, provided, however, such a corporation will not be
8 subject to tax under this subchapter solely because it maintains an
9 office in the city, or employs capital in the city, in connection with
10 such use of property, a corporation principally engaged in the conduct
11 of a ferry business and operating between any of the boroughs of the
12 city under a lease granted by the city and a corporation principally
13 engaged in the conduct of an aviation, steamboat, ferry or navigation
14 business, or two or more of such businesses, all of the capital stock of
15 which is owned by a municipal corporation of this state, shall not be
16 subject to tax under this subchapter; provided, however, that any corpo-
17 ration, other than (1) a utility corporation subject to the supervision
18 of the state department of public service, and (2) for taxable years
19 beginning on or after August first, two thousand two, a utility as
20 defined in subdivision six of section 11-1101 of this title, which is
21 subject to tax under chapter eleven of this title as a vendor of utility
22 services shall be subject to tax under this subchapter, but in computing
23 the tax imposed by this section pursuant to the provisions of clause one
24 of [paragraph] subparagraph (a) of paragraph A of subdivision one of
25 section 11-604, business income allocated to the city pursuant to para-
26 graph (a) of subdivision three of such section shall be reduced by the
27 percentage which such corporation's gross operating income subject to
28 tax under chapter eleven of this title is of its gross operating income.
29 § 4. Section 11-641 of the administrative code of the city of New York
30 is amended by adding a new subdivision (n) to read as follows:
31 (n) Notwithstanding any other provision of this subchapter, for taxa-
32 ble years beginning on or after August first, two thousand two, in the
33 case of a taxpayer that is a partner in a partnership subject to the tax
34 imposed by chapter eleven of this title as a utility, as defined in
35 subdivision six of section 11-1101 of such chapter, entire net income
36 shall not include the taxpayer's distributive or pro rata share for
37 federal income tax purposes of any item of income, gain, loss or
38 deduction of such partnership, or any item of income, gain, loss or
39 deduction of such partnership that the taxpayer is required to take into
40 account separately for federal income tax purposes.
41 § 5. Subdivisions 4, 5, 6 and 7 of section 11-1101 of the administra-
42 tive code of the city of New York, subdivisions 4, 5 and 7 as amended by
43 chapter 536 of the laws of 1998, are amended to read as follows:
44 4. "Gross income." All receipts received in or by reason of any sale
45 made including receipts from the sale of residuals and by-products
46 (except sale of real property) or service rendered in the city, includ-
47 ing cash, credits and property of any kind or nature (whether or not
48 such sale is made or such service is rendered for profit) without any
49 deduction therefrom on account of the cost of the property sold, the
50 cost of material used, labor or services, delivery costs, any other
51 costs whatsoever, interest or discount paid, or any other expense what-
52 soever; also profits from the sale of securities; also profits from the
53 sale of real property growing out of the ownership or use of or interest
54 in such property; also profit from the sale of personal property (other
55 than property of a kind which would properly be included in the invento-
56 ry of the taxpayer if on hand at the close of the taxable period for
S. 7783 15 A. 11817
1 which a return is made); also receipts from interest, dividends and
2 royalties without any deductions therefrom for any expense whatsoever
3 incurred in connection with the receipt thereof, and also gains or
4 profits from any source whatsoever; but shall not include gross income
5 of railroads from the transportation of freight, gross income from the
6 operation of hotels, multiple dwellings or office buildings by persons
7 in the business of operating or leasing sleeping or parlor railroad cars
8 or of operating railroads other than street surface, rapid transit,
9 subway and elevated railroads, or interest or dividends received from a
10 corporation by such persons or by persons subject to taxation under the
11 provisions of section one hundred eighty-six-a of the tax law. Rents or
12 rentals shall not be deemed to be gross receipts subject to tax, except
13 rents or rentals derived from facilities used in the public service;
14 provided, however, that in the case of persons in the business of oper-
15 ating or leasing sleeping or parlor railroad cars or of operating rail-
16 roads other than street surface, rapid transit, subways and elevated
17 railroads, such last-mentioned rents or rentals derived from other such
18 utilities with respect to the operation of terminal facilities shall not
19 be deemed to be gross income subject to tax except for the amount in
20 excess of a user proportion of New York city real property and special
21 franchise taxes and expenses of maintenance and operation. Notwithstand-
22 ing anything to the contrary in this subdivision or any other provision
23 of law, for taxable periods beginning on or after August first, two
24 thousand two, gross income shall include eighty-four percent of charges
25 for the provision of mobile telecommunications services where the place
26 of primary use of the mobile telecommunications services is within the
27 territorial limits of the city except to the extent that such inclusion
28 would result in the taxation of charges for the provision of mobile
29 telecommunications services that is prohibited by federal law.
30 5. "Gross operating income." Includes receipts received in or by
31 reason of any sale made or service rendered, of the property and
32 services specified in subdivision seven of this section in the city,
33 including cash, credits and property of any kind or nature (whether or
34 not such sale is made or such service is rendered for profit), without
35 any deduction therefrom on account of the cost of the property sold, the
36 cost of materials used, labor or other services, delivery costs or any
37 other costs whatsoever, interest or discount paid or any other expenses
38 whatsoever, provided however, that if a vendor of utility service
39 purchases gas, electricity, steam, water or refrigeration or gas, elec-
40 tric, steam, water or refrigeration service in a transaction the
41 receipts from which are not subject to the tax imposed under this chap-
42 ter, the gross operating income derived by such vendor of utility
43 service from the resale of such gas, electricity, steam, water or
44 refrigeration or such gas, electric, steam, water or refrigeration
45 service to its tenants as an incident to such vendor's activity of rent-
46 ing premises to tenants, shall, if subject to the tax imposed under this
47 chapter on such vendor, be conclusively presumed to be equal to the
48 amount of such vendor's cost (including any associated transportation
49 cost) for the purchase of such gas, electricity, steam, water or refrig-
50 eration or gas, electric, steam, water or refrigeration service for
51 resale by such vendor. Notwithstanding anything to the contrary in this
52 subdivision or any other provision of law, for taxable periods beginning
53 on or after August first, two thousand two, gross operating income shall
54 include eighty-four percent of charges for the provision of mobile tele-
55 communications services where the place of primary use of the mobile
56 telecommunications services is within the territorial limits of the city
S. 7783 16 A. 11817
1 except to the extent that such inclusion would result in the taxation of
2 charges for the provision of mobile telecommunications services that is
3 prohibited by federal law.
4 6. "Utility." Every person subject to the supervision of the depart-
5 ment of public service and, for taxable periods beginning on or after
6 August first, two thousand two, every person, whether or not supervised
7 by the department of public service, eighty percent or more of the gross
8 receipts of which consists of charges for the provision of mobile tele-
9 communications services to customers. Notwithstanding anything to the
10 contrary in any other provision of law, for purposes of this subdivi-
11 sion, the gross receipts of a person shall not include the gross
12 receipts of any other related or unrelated person.
13 7. "Vendor of utility services." Every person not subject to the
14 supervision of the department of public service, and not otherwise a
15 utility as defined in subdivision six of this section, who furnishes or
16 sells gas, electricity, steam, water or refrigeration, or furnishes or
17 sells gas, electric, steam, water, refrigeration or telecommunications
18 services, or who operates omnibuses (whether or not such operation is on
19 the public streets); regardless of whether such furnishing, selling or
20 operation constitutes the main activity of such person or is merely
21 incidental thereto.
22 § 6. Section 11-1101 of the administrative code of the city of New
23 York is amended by adding ten new subdivisions 17, 18, 19, 20, 21, 22,
24 23, 24, 25 and 26 to read as follows:
25 17. "Mobile telecommunications services." Telecommunications services
26 that are commercial mobile radio services.
27 18. "Commercial mobile radio services." Commercial mobile radio
28 services as defined in section 20.3 of title 47 of the Code of Federal
29 Regulations as in effect on June first, nineteen hundred ninety-nine.
30 19. "Charges for mobile telecommunications services." Any charge for,
31 or associated with, the provision of mobile telecommunications services
32 and any charge for, or associated with, a service provided as an adjunct
33 to mobile telecommunications services that is billed to the customer by
34 or for the customer's home service provider regardless of whether indi-
35 vidual transmissions originate or terminate within the licensed service
36 area of the home service provider.
37 20. "Place of primary use." The street address representative of where
38 the customer's use of the mobile telecommunications services primarily
39 occurs, which must be (i) the residential street address or the primary
40 business street address of the customer; and (ii) within the licensed
41 service area of the home service provider.
42 21. "Licensed service area." The geographic area in which the home
43 service provider is authorized by law or contract to provide commercial
44 mobile radio services to the customer.
45 22. "Home service provider." The facilities-based carrier or reseller
46 with which the customer contracts for the provision of mobile telecommu-
47 nications services.
48 23. "Customer." The person or entity that contracts with the home
49 service provider for mobile telecommunications services. If the end user
50 of mobile telecommunications services is not the contracting party,
51 then, solely for purposes of subdivision twenty of this section, the
52 term "customer" shall mean the end user of the mobile telecommunications
53 services. The term customer does not include a reseller of mobile tele-
54 communications services, or a serving carrier under an arrangement to
55 serve the customer outside the home service provider's licensed service
56 area.
S. 7783 17 A. 11817
1 24. "Reseller." A provider who purchases telecommunications services
2 from another telecommunications service provider and then resells, uses
3 as a component part of, or integrates the purchased services into a
4 mobile telecommunications service. The term reseller does not include a
5 serving carrier with which a home service provider arranges for the
6 services to its customers outside the home service provider's licensed
7 service area.
8 25. "Serving carrier." A facilities-based carrier providing mobile
9 telecommunications service to a customer outside a home service provid-
10 er's or reseller's licensed service area.
11 26. "Enhanced zip code." A United States postal zip code of nine or
12 more digits.
13 § 7. Subdivision c of section 11-1102 of the administrative code of
14 the city of New York is amended to read as follows:
15 c. For the purpose of proper administration of this chapter and to
16 prevent evasion of the tax hereby imposed, it shall be presumed that the
17 gross income or gross operating income of any person taxable hereunder
18 is taxable and is derived from business conducted wholly within the
19 territorial limits of the city until the contrary is established, and
20 the burden of proving that any part of its gross income or gross operat-
21 ing income is not so derived shall be upon such person. Notwithstanding
22 anything to the contrary in the preceding sentence or in any provision
23 of section twenty-b of the general city law or any other provision of
24 law, for taxable periods beginning on or after August first, two thou-
25 sand two, gross income and gross operating income derived from the
26 provision of mobile telecommunications services shall be deemed to be
27 derived from business conducted wholly within the territorial limits of
28 the city where the place of primary use of the mobile telecommunications
29 services is within the territorial limits of the city.
30 § 8. Section 11-1102 of the administrative code of the city of New
31 York is amended by adding a new subdivision f to read as follows:
32 f. (1) Notwithstanding anything contained in this chapter to the
33 contrary, for taxable periods beginning on or after August first, two
34 thousand two, if a partnership is subject to the tax imposed by this
35 chapter as a utility or as a vendor of utility services, no person who
36 is a partner in such a partnership shall be subject to the tax imposed
37 by this chapter on such partner's distributive share of the gross income
38 or gross operating income of such partnership.
39 (2) If a person is a partner in a partnership subject to the tax
40 imposed by this chapter and that person is separately subject to the
41 supervision of the state department of public service or is a utility or
42 a vendor of utility services based on its activities exclusive of any
43 activities of such partnership, for taxable periods beginning on or
44 after August first, two thousand two, such person shall be subject to
45 the tax imposed by this chapter only on its separate gross income or
46 separate gross operating income, which shall not include such person's
47 distributive share of the gross income or gross operating income of such
48 partnership.
49 (3) For purposes of this subdivision, the term "partner" shall include
50 a person who receives a distributive share of the gross income or gross
51 operating income, directly or indirectly through one or more tiers of
52 partnerships, of a partnership subject to the tax imposed by this chap-
53 ter.
54 § 9. The administrative code of the city of New York is amended by
55 adding two new sections 11-1119 and 11-1120 to read as follows:
S. 7783 18 A. 11817
1 § 11-1119 Determinations of place of primary use of wireless telecom-
2 munications services. a. A home service provider shall be responsible
3 for obtaining and maintaining the customer's place of primary use as
4 defined in subdivision twenty of section 11-1101 of this chapter.
5 Except as provided in subdivision b of this section, if the home service
6 provider's reliance on the information provided by its customer is in
7 good faith: (1) the home service provider can rely on the applicable
8 residential or business street address supplied by the home service
9 provider's customer; and (2) the home service provider shall not be held
10 liable for any additional taxes under this chapter based on a different
11 determination of the place of primary use.
12 b. The commissioner of finance, or the commissioner of taxation and
13 finance of the state of New York on behalf of the commissioner of
14 finance, may determine that the address used by a home service provider
15 for purposes of this chapter does not meet the definition of place of
16 primary use as defined in subdivision twenty of section 11-1101 of this
17 chapter and may give binding notice to the home service provider to
18 change the place of primary use on a prospective basis from the date of
19 notice of determination if:
20 (1) where the determination is made by the commissioner of finance,
21 such commissioner obtains the consent of all affected taxing jurisdic-
22 tions within this state before giving such notice of determination; and
23 (2) before the commissioner of finance or the commissioner of taxation
24 and finance of the state of New York gives such notice of determination,
25 the customer is given an opportunity to demonstrate, in accordance with
26 applicable procedures established by the commissioner of finance making
27 the determination, that that address is the customer's place of primary
28 use.
29 c. Except as provided in subdivision b of this section, a home service
30 provider may treat the address used by the home service provider for
31 purposes of this chapter for the last taxable period beginning before
32 August first, two thousand two, for any customer under a service
33 contract or agreement in effect on July twenty-eighth, two thousand two
34 as that customer's place of primary use for the remaining term of such
35 service contract or agreement, excluding any extension or renewal of
36 such service contract or agreement.
37 § 11-1120 Assignment of place of primary use of telecommunications
38 services to the city. a. If an electronic database meeting the require-
39 ments of subsection a of section 119 of title four of the United States
40 Code is provided by the state of New York, or by a designated database
41 provider as defined in subsection three of section 124 of such title,
42 and the requirements of subsection b of such section 119 are met, a home
43 service provider shall use that database to determine whether the
44 customer's place of primary use is within the territorial limits of the
45 city and shall reflect changes to such database in accordance with
46 subsection c of such section 119.
47 b. A home service provider using the data contained in an electronic
48 database described in subdivision a of this section shall be held harm-
49 less from any tax liability that otherwise would be due under this chap-
50 ter solely as a result of any error or omission in such database
51 provided the home service provider has properly reflected changes to
52 such database in accordance with subsection c of section 119 of title
53 four of the United States Code.
54 c. (1) If no electronic database is provided as described in subdivi-
55 sion a of this section, a home service provider shall be held harmless
56 from any tax liability under this chapter that otherwise would be due
S. 7783 19 A. 11817
1 solely as a result of an assignment of a street address to an incorrect
2 taxing jurisdiction if, subject to subdivision d of this section, the
3 home service provider employs an enhanced zip code to assign each street
4 address to a specific taxing jurisdiction for each level of taxing
5 jurisdiction and exercises due diligence at each level of taxing juris-
6 diction to ensure that each such street address is assigned to the
7 correct taxing jurisdiction. If an enhanced zip code overlaps boundaries
8 of taxing jurisdictions of the same level, the home service provider
9 must designate one specific jurisdiction within such enhanced zip code
10 for use in taxing the activity for such enhanced zip code for each level
11 of taxing jurisdiction. Any enhanced zip code assignment changed in
12 accordance with subdivision d of this section is deemed to be in compli-
13 ance with this subdivision. For purposes of this subdivision, there is a
14 rebuttable presumption that a home service provider has exercised due
15 diligence if such home service provider demonstrates that it has:
16 (i) expended reasonable resources to implement and maintain an appro-
17 priately detailed electronic database of street address assignments to
18 taxing jurisdictions;
19 (ii) implemented and maintained reasonable internal controls to
20 promptly correct misassignments of street addresses to taxing jurisdic-
21 tions; and
22 (iii) used all reasonably obtainable and usable data pertaining to
23 municipal annexations, incorporations, reorganizations and any other
24 changes in jurisdictional boundaries that materially affect the accuracy
25 of such database.
26 (2) Paragraph one of this subdivision applies to a home service
27 provider that is in compliance with the requirements of such paragraph
28 until the later of:
29 (i) eighteen months after the nationwide standard numeric code
30 described in subsection (a) of section 119 of title four of the United
31 States Code has been approved by the federation of tax administrators
32 and the multistate tax commission; or
33 (ii) six months after the state of New York or a designated database
34 provider provides a database as prescribed in subdivision a of this
35 section.
36 d. The commissioner of finance, or the commissioner of taxation and
37 finance of the state of New York on behalf of the commissioner of
38 finance, may determine that the assignment of a street address to a
39 taxing jurisdiction by a home service provider under subdivision c of
40 this section does not reflect the correct taxing jurisdiction and give
41 binding notice to the home service provider to change the assignment on
42 a prospective basis from the date of notice of determination if:
43 (1) where the determination is made by the commissioner of finance,
44 such commissioner obtains the consent of all affected taxing jurisdic-
45 tions within this state before giving such notice of determination; and
46 (2) the home service provider is given an opportunity to demonstrate
47 in accordance with applicable procedures established by the commissioner
48 of finance making the determination that the assignment reflects the
49 correct taxing jurisdiction.
50 § 10. Nonseverability. If a court of competent jurisdiction enters a
51 final judgment on the merits that is based on federal law, is no longer
52 subject to appeal, and substantially limits or impairs the essential
53 elements of sections 116 through 126 of title 4 U.S.C., then sections
54 one through nine of this act are declared to be invalid and shall have
55 no legal effect as of the date of entry of such judgment.
56 § 11. This act shall take effect immediately.
S. 7783 20 A. 11817
1 PART D
2 Section 1. Subdivision 1 of section 303 of the county law, as amended
3 by chapter 309 of the laws of 1996, is amended to read as follows:
4 1. Notwithstanding the provisions of any law to the contrary, any
5 municipality of this state, acting through its board, is hereby author-
6 ized and empowered to adopt, amend or repeal local laws to impose a
7 surcharge in an amount not to exceed thirty-five cents per access line
8 per month on the customers of every service supplier within such munici-
9 pality to pay for the costs associated with obtaining, operating and
10 maintaining the telecommunication equipment and telephone services need-
11 ed to provide an enhanced 911 emergency telephone system to serve such
12 municipality, provided, however, that any municipality that is a city
13 having a population of one million or more is hereby authorized and
14 empowered to adopt, amend or repeal local laws to impose a surcharge in
15 an amount not to exceed one dollar per access line per month on the
16 customers of every service supplier within such municipality to pay for
17 the costs associated with obtaining, operating and maintaining the tele-
18 communication equipment and telephone services needed to provide an
19 enhanced 911 emergency telephone system to serve such municipality.
20 § 2. This act shall take effect immediately.
21 PART E
22 Section 1. Paragraph (a) of subdivision 1 of section 1 of chapter 235
23 of the laws of 1952 relating to enabling any city of the state having a
24 population of one million or more to adopt, and amend local laws, impos-
25 ing certain specified types of taxes on cigarettes, cigars and smoking
26 tobacco which the legislature has or would have power and authority to
27 impose, to provide for the review of such taxes, and to limit the appli-
28 cation of such local laws, as amended by chapter 29 of the laws of 1985,
29 is amended to read as follows:
30 (a) The rate of such tax on cigarettes shall not exceed [four] seven-
31 ty-five cents for each ten cigarettes or fraction thereof, provided,
32 however, that if a package of cigarettes contains more than twenty ciga-
33 rettes, the rate of tax on the cigarettes in such package in excess of
34 twenty shall be [two] thirty-eight cents for each five cigarettes or
35 fraction thereof. Such tax is intended to be imposed only once on the
36 same package of cigarettes.
37 § 2. Subdivision (a) of section 1846 of the tax law, as added by chap-
38 ter 65 of the laws of 1985, is amended to read as follows:
39 (a) Whenever a police officer designated in section 1.20 of the crimi-
40 nal procedure law or a peace officer designated in subdivision four of
41 section 2.10 of such law, acting pursuant to his or her special duties,
42 shall discover any cigarettes subject to tax provided by article twenty
43 of this chapter or by chapter thirteen of title eleven of the adminis-
44 trative code of the city of New York, and upon which the tax has not
45 been paid or the stamps not affixed as required by such article or such
46 chapter thirteen, they are hereby authorized and empowered forthwith to
47 seize and take possession of such cigarettes, together with any vending
48 machine or receptacle in which they are held for sale. Such cigarettes,
49 vending machine or receptacle seized by a police officer or such peace
50 officer shall be turned over to the [tax commission] commissioner. Such
51 seized cigarettes, vending machine or receptacle, not including money
52 contained in such vending machine or receptacle, shall be forfeited to
53 the state. The [tax commission] commissioner may, within a reasonable
S. 7783 21 A. 11817
1 time thereafter, upon publication of a notice to such effect for at
2 least five successive days, before the day of sale, in a newspaper
3 published or circulated in the county where the seizure was made, sell
4 such forfeited cigarettes and vending machines or receptacles at public
5 sale and pay the proceeds into the state treasury to the credit of the
6 general fund. Cigarettes so seized and sold shall be sold only to an
7 agent under article twenty of this chapter and the notice of sale shall
8 contain a provision to this effect. Notwithstanding any other provision
9 of this section, the [tax commission] commissioner may enter into an
10 agreement with any city of this state which is authorized to impose a
11 tax similar to that imposed by article twenty of this chapter to provide
12 for the disposition between the state and any such city of the proceeds
13 from any such sale.
14 § 3. Subdivision (a) of section 1847 of the tax law, as added by chap-
15 ter 65 of the laws of 1985, is amended to read as follows:
16 (a) Any peace officer designated in subdivision four or five of
17 section 2.10 of the criminal procedure law, acting pursuant to his or
18 her special duties, or any police officer designated in section 1.20 of
19 the criminal procedure law may seize any vehicle or other means of
20 transportation used to transport or for the deposit or concealment of
21 more than one hundred unstamped or unlawfully stamped packages of ciga-
22 rettes subject to tax under article twenty of this chapter or by chapter
23 thirteen of title eleven of the administrative code of the city of New
24 York, other than a vehicle or other means of transportation used by any
25 person as a common carrier in transaction of business as such common
26 carrier, and such vehicle or other means of transportation shall be
27 subject to forfeiture as hereinafter in this section provided.
28 § 4. Section 2 of chapter 235 of the laws of 1952 relating to enabling
29 any city of the state having a population of one million or more to
30 adopt, and amend local laws, imposing certain specified types of taxes
31 on cigarettes, cigars and smoking tobacco which the legislature has or
32 would have power and authority to impose, to provide for the review of
33 such taxes, and to limit the application of such local laws is amended
34 to read as follows:
35 § 2. Revenues resulting from the imposition of taxes authorized by
36 this act shall be paid into the treasury of any such city and shall be
37 credited to and deposited in the general fund of any such city, except
38 that, after the payment of refunds with respect to such taxes, effective
39 on and after July 2, 2002, 46.5 percent and, effective on and after
40 April 1, 2003, 46 percent of such revenues (including taxes, interest
41 and penalties) collected or received shall be paid to the state comp-
42 troller. The state comptroller is hereby authorized and directed to
43 transfer all such amounts so paid to the credit of the tobacco control
44 and insurance initiatives pool to be distributed by the commissioner of
45 health in accordance with section 2807-v of the public health law.
46 § 5. Subdivision 6 of section 121 of the state finance law, as
47 amended by chapter 23 of the laws of 2000, is amended to read as
48 follows:
49 6. Notwithstanding any other provision of law to the contrary, the
50 taxes, interest and penalties collected or received by the commissioner
51 of taxation and finance under sections four hundred seventy-one and four
52 hundred seventy-one-a of the tax law, and the revenue (including taxes,
53 interest and penalties) from the imposition of cigarette taxes by a
54 local government paid to the comptroller of the state of New York by
55 such local government, which are required to be deposited to the credit
56 of the tobacco control and insurance initiatives pool established by
S. 7783 22 A. 11817
1 section twenty-eight hundred seven-v of the public health law and moneys
2 received in the tobacco settlement fund established by section ninety-
3 two-x of this chapter shall be exempt from the provisions of this
4 section.
5 § 6. Subdivision 7 of section 4 of the state finance law, as amended
6 by chapter 23 of the laws of 2000, is amended to read as follows:
7 7. Notwithstanding subdivision one of this section, the taxes, inter-
8 est and penalties collected or received by the commissioner of taxation
9 and finance under sections four hundred seventy-one and four hundred
10 seventy-one-a of the tax law, and the revenue (including taxes, interest
11 and penalties) from the imposition of cigarette taxes by a local govern-
12 ment paid to the comptroller of the state of New York by such local
13 government, which are required to be deposited to the credit of the
14 tobacco control and insurance initiatives pool established by section
15 twenty-eight hundred seven-v of the public health law and moneys
16 received in the tobacco settlement fund established by section ninety-
17 two-x of this chapter shall be made pursuant to statute but without an
18 appropriation.
19 § 7. Notwithstanding any other provision of the law to the contrary,
20 the tax due on cigarettes possessed in the city of New York, as of the
21 close of business on the day before the effective date of a local law
22 imposing such tax authorized by this act, by any person for sale, solely
23 attributable to the increase imposed by such local law, may be paid in
24 two installments, due on the twentieth days of the third and seventh
25 months after the last day of the month preceding the month during which
26 such local law takes effect, subject to such terms and conditions as the
27 department of finance of the city of New York may prescribe; provided,
28 however that no less than 25 percent of each such tax due shall be paid
29 by the twentieth day of the third month thereafter.
30 § 8. The city of New York is hereby authorized and directed to compen-
31 sate the state of New York for certain processing and administrative
32 costs incurred, pursuant to the authority of section 475 of the tax law
33 or subdivision 8 of section 11-1308 of the administrative code of the
34 city of New York, by the state department of taxation and finance with
35 respect to the tax due on cigarettes possessed in such city, as of the
36 close of business on the day before the effective date of a local law
37 imposing such tax authorized by this act, by such person for sale, sole-
38 ly attributable to the increase imposed by such local law.
39 § 9. This act shall take effect immediately.
40 PART F
41 Section 1. The county law is amended by adding a new section 308-a to
42 read as follows:
43 § 308-a. Establishment of city wireless surcharges. 1. Notwithstand-
44 ing the provisions of any law to the contrary, any city with a popu-
45 lation of one million or more, acting through its board, is hereby
46 authorized and empowered to adopt, amend or repeal local laws to impose
47 a surcharge in an amount not to exceed thirty cents per month on wire-
48 less communications service in the city. The surcharge shall be imposed
49 on each wireless communications device and shall be reflected and made
50 payable on bills rendered for wireless communications service that is
51 provided to a customer whose place of primary use is within the city.
52 For purposes of this section, the term "place of primary use" shall mean
53 the street address that is representative of where the customer's use of
54 the wireless communications service primarily occurs, which address must
S. 7783 23 A. 11817
1 be: (a) the residential street address or the primary business street
2 address of the customer; and (b) within the licensed service area of the
3 wireless communications service provider. All surcharge monies remitted
4 to the city shall be used to pay for costs associated with the design,
5 construction, operation, maintenance, and administration of public safe-
6 ty communications networks serving such city.
7 2. Any local law adopted pursuant to this section shall state the
8 amount of the surcharge and the date on which the wireless communi-
9 cations service supplier shall begin to add such surcharge to the bill-
10 ings of its customers. Any wireless communications service supplier
11 within such city which has imposed a surcharge pursuant to the
12 provisions of this section shall be given a minimum of forty-five days
13 written notice prior to the date it shall begin to add such surcharge to
14 the billings of its customers or prior to any modification to or change
15 in the surcharge amount.
16 3. (a) Each wireless communications service supplier serving such city
17 shall act as collection agent for the city and shall remit the funds
18 collected pursuant to a surcharge imposed under the provisions of this
19 section to the chief fiscal officer of the city every month. Such funds
20 shall be remitted no later than thirty days after the last business day
21 of the month.
22 (b) Each wireless communications service supplier shall be entitled to
23 retain, as an administrative fee, an amount equal to two percent of its
24 collections of a surcharge imposed under the provisions of this section.
25 (c) Any surcharge required to be collected by a wireless communi-
26 cations service supplier shall be added to and stated separately in its
27 billings to customers.
28 (d) Each wireless communications service customer who is subject to
29 the provisions of this section shall be liable to such city for the
30 surcharge until it has been paid to the city except that payment to a
31 wireless communications service supplier is sufficient to relieve the
32 customer from further liability for such surcharge.
33 (e) No wireless communications service supplier shall have a legal
34 obligation to enforce the collection of any surcharge imposed under the
35 provisions of this section, provided, however, that whenever the wire-
36 less communications service supplier remits the funds collected to the
37 city, it shall also provide the city with the name and address of any
38 customer refusing or failing to pay a surcharge imposed under the
39 provisions of this section and shall state the amount of such surcharge
40 remaining unpaid.
41 (f) Each wireless communications service supplier shall annually
42 provide to such city an accounting of the surcharge amounts billed and
43 collected.
44 4. All surcharge monies remitted to the city by a wireless communi-
45 cations service supplier shall be expended only upon authorization of
46 the board and only for payment of system costs or other costs associated
47 with the design, construction, operation, maintenance, and adminis-
48 tration of public safety communications networks serving such city. The
49 city shall separately account for and keep adequate books and records of
50 the amount and source of all such monies and of the amount and object or
51 purpose of all expenditures thereof. If, at the end of any fiscal year,
52 the total amount of all such monies exceeds the amount necessary for
53 payment of the above mentioned costs in such fiscal year, such excess
54 shall be reserved and carried over for the payment of those costs in the
55 following fiscal year.
S. 7783 24 A. 11817
1 § 2. This act shall take effect immediately, provided that the
2 provisions of section one of this act defining primary place of use
3 shall take effect for bills rendered to wireless communications service
4 customers by a wireless communications service supplier on and after
5 August 1, 2002, provided that a wireless service supplier may treat the
6 address used by such supplier for any wireless communications customer
7 under a service contract or agreement in effect on July 28, 2002, as
8 that wireless communications customer's place of primary use for the
9 remaining term of such service contract or agreement, excluding any
10 extension or renewal of such service contract or agreement, for purposes
11 of determining the taxing jurisdiction with respect to taxes on wireless
12 communications service.
13 PART G
14 Section 1. The opening paragraph of section 1 of chapter 772 of the
15 laws of 1966, relating to the imposition of new taxes on general, finan-
16 cial and transportation corporations and unincorporated businesses in a
17 city having a population of one million or more, as amended by chapter
18 472 of the laws of 2000, is amended to read as follows:
19 Notwithstanding any other provision of law to the contrary, any city
20 having a population of one million or more, acting through its local
21 legislative body, is hereby authorized and empowered to adopt and amend
22 local laws imposing for any such city taxes on general corporations,
23 financial corporations and transportation corporations at the rates
24 provided herein, or if alternative rates are provided, then, in such
25 event, at either of such rates. The terms of such local law or local
26 laws shall be, substantially, as follows except that any such local law
27 may be amended for the purpose of conforming it with similar provisions
28 of articles [nine-A, nine-B, nine-C, twenty-seven] 9-A, 27 and [thirty-
29 two] 32 (except section [fourteen hundred fifty-six] 1456 thereof) of
30 the tax law and section [eight] 8 of chapter [one hundred sixty-seven]
31 167 of the laws of [nineteen hundred seventy-two] 1972 as presently in
32 effect or as they may be amended provided, however, that the definition
33 set forth in subsection (c) of section [fourteen hundred fifty] 1450 of
34 the tax law and the deduction set forth in subsection (f) of section
35 [fourteen hundred fifty-three] 1453 of the tax law shall be incorporated
36 in any local law imposing a tax such as is imposed by article [thirty-
37 two] 32 of the tax law and provided further, that credits analogous to
38 the credits provided in paragraphs (b) and (c) of subdivision [one] 1 of
39 section [four-h] 4-h of part [two] 2 of this section and subject to the
40 limitations contained in such part, may be incorporated in any local law
41 imposing a tax such as is imposed under article [thirty-two] 32 of the
42 tax law, and provided further, that a provision analogous to paragraph
43 [one] 1 of subsection (b) of section [fourteen hundred fifty-five] 1455
44 of the tax law, as such paragraph [one] 1 existed immediately prior to
45 its repeal by section [twenty-four] 24 of chapter [two hundred ninety-
46 eight] 298 of the laws of [nineteen hundred eighty-five] 1985 (but
47 subject to the amendments contained in paragraph [two] 2 of subdivision
48 (b) of section 11-643.5 of the administrative code of the city of New
49 York), shall continue to apply to banking corporations organized under
50 the laws of any country other than the United States and provided
51 further, however, that in the event that any local law is adopted impos-
52 ing a tax such as is imposed by such article [thirty-two] 32 of the tax
53 law, then no tax [such as is or has been imposed by articles nine-B and
54 nine-C of such tax law shall be] imposed by such city for any periods
S. 7783 25 A. 11817
1 for which a tax such as is imposed by such article [thirty-two] 32 is
2 imposed and the rates of tax under any such local law imposing a tax
3 such as is imposed by such article [thirty-two] 32 shall be, for the
4 basic tax analogous to [the] that fixed by subsection (a) of section
5 [fourteen hundred fifty-five] 1455 of the tax law, no greater than nine
6 per centum, for the alternative minimum tax analogous to that fixed
7 under paragraph [one] 1 of subsection (b) of such section, as such para-
8 graph [one] 1 existed prior to its repeal by section [twenty-four] 24 of
9 chapter [two hundred ninety-eight] 298 of the laws of [nineteen hundred
10 eighty-five] 1985 (but subject to the amendments contained in paragraph
11 [two] 2 of subdivision (b) of section 11-643.5 of the administrative
12 code of the city of New York), no greater than two and six-tenths mills
13 per dollar of issued capital stock or the excess of average total assets
14 over average total liabilities apportionable to such city, for the
15 alternative minimum tax analogous to that fixed under such paragraph
16 [one] 1 as added by section [twenty-four] 24 of such chapter, no greater
17 than one-tenth of a mill, for the alternative minimum tax analogous to
18 that fixed by paragraph [two] 2 of such subsection, no greater than
19 three percent, and for the alternative minimum tax analogous to that
20 fixed by paragraph [three] 3 of such subsection, no greater than one
21 hundred twenty-five dollars and except that the appendix in such local
22 laws may be amended for the purpose of conforming it with the United
23 States internal revenue code or other federal laws relating to taxation
24 as presently in effect or as they may be amended, and provided further,
25 however, any such local law imposing a tax such as is imposed by such
26 article 32 may be amended to conform it with the analogous provisions of
27 subparagraph 11 of paragraph (a), subparagraph 13 of paragraph (b) and
28 paragraphs (l), (m) and (n) of subdivision 8 of section 2 of section 1
29 of this chapter:
30 § 2. Paragraph (a) of subdivision 8 of section 2 of section 1 of chap-
31 ter 772 of the laws of 1966, relating to the imposition of new taxes on
32 general, financial and transportation corporations and unincorporated
33 businesses in a city having a population of one million or more, is
34 amended by adding a new subparagraph 11 to read as follows:
35 (11) for taxable years ending after September 10, 2001, the amount
36 deductible pursuant to paragraph (1) of this subdivision.
37 § 3. Paragraph (b) of subdivision 8 of section 2 of section 1 of chap-
38 ter 772 of the laws of 1966, relating to the imposition of new taxes on
39 general, financial and transportation corporations and unincorporated
40 businesses in a city having a population of one million or more, is
41 amended by adding a new subparagraph 13 to read as follows:
42 (13) for taxable years ending after September 10, 2001, in the case of
43 qualified property described in paragraph 2 of subsection k of section
44 168 of the internal revenue code, other than qualified resurgence zone
45 property described in paragraph (n) of this subdivision, and other than
46 qualified New York Liberty Zone property described in paragraph 2 of
47 subsection b of section 1400L of the internal revenue code (without
48 regard to clause (i) of subparagraph (C) of such paragraph), the amount
49 allowable as a deduction under section 167 of the internal revenue code.
50 § 4. Subdivision 8 of section 2 of section 1 of chapter 772 of the
51 laws of 1966, relating to the imposition of new taxes on general, finan-
52 cial and transportation corporations and unincorporated businesses in a
53 city having a population of one million or more, is amended by adding
54 three new paragraphs (l), (m) and (n) to read as follows:
55 (l) for taxable years ending after September 10, 2001, in the case of
56 qualified property described in paragraph 2 of subsection k of section
S. 7783 26 A. 11817
1 168 of the internal revenue code, other than qualified resurgence zone
2 property described in paragraph (n) of this subdivision, and other than
3 qualified New York Liberty Zone property described in paragraph 2 of
4 subsection b of section 1400L of the internal revenue code (without
5 regard to clause (i) of subparagraph (C) of such paragraph), a taxpayer
6 shall be allowed with respect to such property the depreciation
7 deduction allowable under section 167 of the internal revenue code as
8 such section would have applied to such property had it been acquired by
9 the taxpayer on September 10, 2001.
10 (m) for taxable years ending after September 10, 2001, upon the dispo-
11 sition of property to which paragraph (l) of this subdivision applies,
12 the amount of any gain or loss includible in entire net income shall be
13 adjusted to reflect the inclusions and exclusions from entire net income
14 pursuant to subparagraph 11 of paragraph (a) and subparagraph 13 of
15 paragraph (b) of this subdivision attributable to such property.
16 (n) for purposes of paragraphs (l) and (m) of this subdivision, quali-
17 fied resurgence zone property shall mean qualified property described in
18 paragraph 2 of subsection k of section 168 of the internal revenue code
19 substantially all of the use of which is in the resurgence zone, as
20 defined below, and is in the active conduct of a trade or business by
21 the taxpayer in such zone, and the original use of which in the resur-
22 gence zone commences with the taxpayer after September 10, 2001. The
23 resurgence zone shall mean the area of New York county bounded on the
24 south by a line running from the intersection of the Hudson River with
25 the Holland Tunnel, and running thence east to Canal Street, then
26 running along the centerline of Canal Street to the intersection of the
27 Bowery and Canal Street, running thence in a southeasterly direction
28 diagonally across Manhattan Bridge Plaza, to the Manhattan Bridge and
29 thence along the centerline of the Manhattan Bridge to the point where
30 the centerline of the Manhattan Bridge would intersect with the easterly
31 bank of the East River, and bounded on the north by a line running from
32 the intersection of the Hudson River with the Holland Tunnel and running
33 thence north along West Avenue to the intersection of Clarkson Street
34 then running east along the centerline of Clarkson Street to the inter-
35 section of Washington Avenue, then running south along the centerline of
36 Washington Avenue to the intersection of West Houston Street, then east
37 along the centerline of West Houston Street, then at the intersection of
38 the Avenue of the Americas continuing east along the centerline of East
39 Houston Street to the easterly bank of the East River.
40 § 5. Section 105 of section 2 of chapter 772 of the laws of 1966,
41 relating to the imposition of new taxes on general, financial and trans-
42 portation corporations and unincorporated businesses in a city having a
43 population of one million or more, is amended by adding a new subdivi-
44 sion (d) to read as follows:
45 (d) Upon the disposition of property to which subdivisions 14 and 15
46 of section 106 of this chapter apply, the amount of any gain or loss
47 includible in entire net income shall be adjusted to reflect the modifi-
48 cations provided in such subdivisions attributable to such property.
49 § 6. Section 106 of section 2 of chapter 772 of the laws of 1966,
50 relating to the imposition of new taxes on general, financial and trans-
51 portation corporations and unincorporated businesses in a city having a
52 population of one million or more, is amended by adding three new subdi-
53 visions 14, 15 and 16 to read as follows:
54 (14) For taxable years ending after September 10, 2001, in the case of
55 qualified property described in paragraph 2 of subsection k of section
56 168 of the internal revenue code, other than qualified resurgence zone
S. 7783 27 A. 11817
1 property described in subdivision 16 of this section, and other than
2 qualified New York Liberty Zone property described in paragraph 2 of
3 subsection b of section 1400L of the internal revenue code (without
4 regard to clause (i) of subparagraph (C) of such paragraph), no
5 deduction shall be allowed for the amount allowable as a deduction under
6 section 167 of the internal revenue code.
7 (15) For taxable years ending after September 10, 2001, in the case of
8 qualified property described in paragraph 2 of subsection k of section
9 168 of the internal revenue code, other than qualified resurgence zone
10 property described in subdivision 16 of this section, and other than
11 qualified New York Liberty Zone property described in paragraph 2 of
12 subsection b of section 1400L of the internal revenue code (without
13 regard to clause (i) of subparagraph (C) of such paragraph), a deduction
14 shall be allowed with respect to such property equal to the depreciation
15 deduction allowable under section 167 of the internal revenue code as
16 such section would have applied to such property had it been acquired by
17 the taxpayer on September 10, 2001.
18 (16) For purposes of subdivisions 14 and 15 of this section, qualified
19 resurgence zone property shall mean qualified property described in
20 paragraph 2 of subsection k of section 168 of the internal revenue code
21 substantially all of the use of which is in the resurgence zone, as
22 defined below, and is in the active conduct of a trade or business by
23 the taxpayer in such zone, and the original use of which in the resur-
24 gence zone commences with the taxpayer after September 10, 2001. The
25 resurgence zone shall mean the area of New York county bounded on the
26 south by a line running from the intersection of the Hudson River with
27 the Holland Tunnel, and running thence east to Canal Street, then
28 running along the centerline of Canal Street to the intersection of the
29 Bowery and Canal Street, running thence in a southeasterly direction
30 diagonally across Manhattan Bridge Plaza, to the Manhattan Bridge and
31 thence along the centerline of the Manhattan Bridge to the point where
32 the centerline of the Manhattan Bridge would intersect with the easterly
33 bank of the East River, and bounded on the north by a line running from
34 the intersection of the Hudson River with the Holland Tunnel and running
35 thence north along West Avenue to the intersection of Clarkson Street
36 then running east along the centerline of Clarkson Street to the inter-
37 section of Washington Avenue, then running south along the centerline of
38 Washington Avenue to the intersection of West Houston Street, then east
39 along the centerline of West Houston Street, then at the intersection of
40 the Avenue of the Americas continuing east along the centerline of East
41 Houston Street to the easterly bank of the East River.
42 § 7. The local legislative body of any city having a population of one
43 million or more has the option to, but shall not be obligated to, adopt
44 and amend local laws to implement the provisions of this act. The deter-
45 mination by any such local legislative body not to adopt or amend local
46 laws to implement any or all of the provisions of this act shall not
47 cause the local laws of such city imposing taxes on general corpo-
48 rations, financial corporations, transportation corporations or unincor-
49 porated businesses to be in violation of any provision of this act or
50 any other provision of law.
51 § 8. If any provision of sections one through six of this act, or of
52 any local laws enacted pursuant to the authority granted under this act,
53 is adjudged by any court of competent jurisdiction to be invalid or
54 unconstitutional, for taxable years ending after September 10, 2001, for
55 purposes of the taxes authorized by chapter 772 of the laws of 1966 as
56 amended, the depreciation deduction allowable for qualified property
S. 7783 28 A. 11817
1 described in paragraph 2 of subsection k of section 168 of the internal
2 revenue code, for qualified New York Liberty Zone property described in
3 paragraph 2 of subsection b of section 1400L of the internal revenue
4 code and for qualified New York Liberty Zone leasehold improvement prop-
5 erty described in paragraph 2 of subsection c of section 1400L of the
6 internal revenue code, shall be limited to the depreciation deduction
7 allowable under section 167 of the internal revenue code as such section
8 would have applied to such property had it been acquired by the taxpayer
9 on September 10, 2001, and the expense deduction allowable under section
10 179 of the internal revenue code with respect to such property shall be
11 limited to the deduction allowable under such section as it would have
12 applied to such property had it been acquired by the taxpayer on Septem-
13 ber 10, 2001, and, for purposes of such taxes, any gain or loss upon the
14 disposition of such property shall be adjusted to reflect such modifica-
15 tions to the allowable depreciation and expense deductions with respect
16 thereto.
17 § 9. This act shall take effect immediately, except that any local law
18 authorized by sections one through six of this act shall apply to taxa-
19 ble years ending on and after September 10, 2001.
20 PART H
21 Section 1. Subdivision 1 of section 1803-a of the real property tax
22 law is amended by adding a new paragraph (1) to read as follows:
23 (1) Notwithstanding the provisions of paragraph (c) of this subdivi-
24 sion to the contrary, in a special assessing unit that is a city and for
25 current base proportions to be determined in such special assessing
26 unit's fiscal year two thousand three, the current base proportion of
27 any class shall not exceed the adjusted base proportion or adjusted
28 proportion, whichever is appropriate, of the immediately preceding year
29 by more than two percent. Where the computation performed pursuant to
30 paragraph (b) of this subdivision would otherwise produce such result,
31 the current base proportion of such class or classes shall be limited to
32 such two percent increase and the legislative body of such special
33 assessing unit shall alter the current base proportion of any or all
34 remaining classes so that the sum of the current base proportions equals
35 one.
36 § 2. In the event the special assessing unit that is a city has sent
37 out real property tax bills for its fiscal year 2003 before this act
38 shall have become a law, such city shall take such actions as are neces-
39 sary, consistent with applicable state and local law, to effect the
40 provisions of section one of this act, including, but not limited to,
41 revising the current base proportions and adjusted base proportions,
42 resetting the real property tax rates and sending amended real property
43 tax bills. Provided, however, that nothing in section one of this act
44 shall be deemed to affect the obligation of any taxpayer with respect to
45 the payment of any installment of real property tax for such fiscal year
46 that was due and payable prior to the date such amended real property
47 tax bills are sent; for this purpose, such obligations shall be deter-
48 mined in accordance with the applicable provisions of law that were in
49 effect immediately prior to the effective date of this act, and such
50 city shall be authorized to determine the date on which amended bills
51 are to be sent and the installments of real property tax that are to be
52 reflected therein.
53 § 3. This act shall take effect immediately.
S. 7783 29 A. 11817
1 PART I
2 Section 1. Paragraph f of subdivision 6 of section 2590-p of the
3 education law, as amended by chapter 91 of the laws of 2002, is amended
4 to read as follows:
5 f. The chancellor[, in his or her capacity as] and the president of
6 the New York city school construction authority, shall notify the mayor
7 of the amount of appropriated funds projected to be spent for (i) devel-
8 opment of detailed scopes, (ii) development of preliminary plans, (iii)
9 site acquisition and (iv) emergencies, and the mayor shall thereupon
10 authorize the issuance of bonds therefor in accordance with the local
11 finance law and shall notify the city comptroller of his or her authori-
12 zation to expend such amounts for such purposes. Such notice shall be
13 given or amended at least ten days prior to any expenditure included
14 therein; provided that the chancellor, the president of the authority
15 and the mayor shall develop procedures to expedite authorization of
16 emergency expenditures. Neither the city board nor the authority shall
17 expend funds for such purposes in excess of the amounts specified in
18 such notice until the chancellor shall have amended such notice to
19 reflect such excess. Upon approval of the detailed scope of a project,
20 the mayor shall authorize the issuance of bonds therefor in accordance
21 with the local finance law and shall notify the city comptroller of his
22 or her authorization to expend appropriated funds for the entire esti-
23 mated cost of such project.
24 § 2. This act shall take effect July 1, 2002.
25 PART J
26 Section 1. Section 3020 of the education law is amended by adding a
27 new subdivision 4 to read as follows:
28 4. a. Notwithstanding any inconsistent provision of law, the proce-
29 dures set forth in section three thousand twenty-a of this article and
30 subdivision seven of section twenty-five hundred ninety-j of this chap-
31 ter may be modified by agreements negotiated between the city school
32 district of the city of New York and any employee organization repres-
33 enting employees or titles that are or were covered by any memorandum of
34 agreement executed by such city school district and the united feder-
35 ation of teachers on or after June tenth, two thousand two. Where such
36 procedures are so modified: (i) compliance with such modified procedures
37 shall satisfy any provision of this chapter that requires compliance
38 with section three thousand twenty-a of this article; (ii) any employee
39 against whom charges have been preferred prior to the effective date of
40 such modification shall continue to be subject to the provisions of such
41 section as in effect on the date such charges were preferred; (iii) the
42 provisions of subdivisions one and two of this section shall not apply
43 to agreements negotiated pursuant to this subdivision, except that no
44 person enjoying the benefits of tenure shall be disciplined or removed
45 during a term of employment except for just cause; and (iv) in accord-
46 ance with paragraph (e) of subdivision one of section two hundred nine-a
47 of the civil service law, such modified procedures contained in an
48 agreement negotiated pursuant to this subdivision shall continue as
49 terms of such agreement after its expiration until a new agreement is
50 negotiated.
51 b. Any modifications to the procedures set forth in section three
52 thousand twenty-a of this article and subdivision seven of section twen-
53 ty-five hundred ninety-j of this chapter shall not change the manner in
S. 7783 30 A. 11817
1 which the fees and expenses of such proceedings pursuant to the afore-
2 said sections are paid.
3 § 2. This act shall take effect immediately and shall be deemed to
4 authorize and apply to a memorandum of agreement executed by the city
5 school district of the city of New York and the united federation of
6 teachers provided, however, that a contract containing such agreement
7 shall have been adopted by the city board of the city school district of
8 the city of New York and ratified by the united federation of teachers.
9 PART K
10 Section 1. Paragraph b of subdivision 2 of section 3612 of the educa-
11 tion law, as added by chapter 62 of the laws of 2000, is amended to read
12 as follows:
13 b. Such grants shall be awarded to school districts, within the limits
14 of funds appropriated therefor, through a competitive process that takes
15 into consideration the magnitude of any shortage of teachers in the
16 school district, the number of teachers employed in the school district
17 who hold temporary licenses to teach in the public schools of the state,
18 the number of provisionally certified teachers, the fiscal capacity and
19 geographic sparsity of the district, the number of new teachers the
20 school district intends to hire in the coming school year and the number
21 of summer in the city student internships proposed by an eligible school
22 district, if applicable. Grants provided pursuant to this section shall
23 be used only for the purposes enumerated in this section. Notwithstand-
24 ing any other provision of law to the contrary, a city school district
25 in a city having a population of one million or more inhabitants receiv-
26 ing a grant pursuant to this section may use no more than fifty percent
27 of such grant funds for any recruitment, retention and certification
28 costs associated with transitional certification of teacher candidates
29 for the school years two thousand one--two thousand two and two thousand
30 two--two thousand three.
31 § 2. This act shall take effect immediately and shall be deemed to
32 have been in full force and effect on and after July 1, 2001 and shall
33 expire and be deemed repealed June 30, 2003.
34 § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
35 sion, section or part of this act shall be adjudged by any court of
36 competent jurisdiction to be invalid, such judgment shall not affect,
37 impair, or invalidate the remainder thereof, but shall be confined in
38 its operation to the clause, sentence, paragraph, subdivision, section
39 or part thereof directly involved in the controversy in which such judg-
40 ment shall have been rendered. It is hereby declared to be the intent of
41 the legislature that this act would have been enacted even if such
42 invalid provisions had not been included herein.
43 § 3. This act shall take effect immediately; provided, however, that
44 the applicable effective date of Parts A through K of this act shall be
45 as specifically set forth in the last section of such Parts.
