S T A T E O F N E W Y O R K
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5463
2013-2014 Regular Sessions
I N S E N A T E
May 16, 2013
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Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to the personal wealth building
savings program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The tax law is amended by adding a new section 39 to read
as follows:
S 39. PERSONAL WEALTH BUILDING SAVINGS PROGRAM. 1. DEFINITIONS. (A)
ACCOUNT. FOR PURPOSES OF THIS SECTION, THE TERM "ACCOUNT" MEANS A
PERSONAL WEALTH BUILDING SAVINGS ACCOUNT ESTABLISHED IN ACCORDANCE WITH
THE PROVISIONS OF THIS SECTION.
(B) ACCOUNT BENEFICIARY. THE TERM "ACCOUNT BENEFICIARY" MEANS THE
INDIVIDUAL IN WHOSE NAME THE ACCOUNT WAS ESTABLISHED.
(C) FINANCIAL ORGANIZATION. FOR PURPOSES OF THIS SECTION, THE TERM
"FINANCIAL ORGANIZATION" SHALL MEAN AN ORGANIZATION AUTHORIZED TO DO
BUSINESS IN THE STATE OF NEW YORK AND (I) WHICH IS AN AUTHORIZED FIDUCI-
ARY TO ACT AS A TRUSTEE PURSUANT TO THE PROVISIONS OF AN ACT OF CONGRESS
ENTITLED "EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974" AS SUCH
PROVISIONS MAY BE AMENDED FROM TIME TO TIME, OR AN INSURANCE COMPANY;
AND (II)(A) IS LICENSED OR CHARTERED BY THE DEPARTMENT OF FINANCIAL
SERVICES, (B) IS CHARTERED BY AN AGENCY OF THE FEDERAL GOVERNMENT, (C)
IS SUBJECT TO THE JURISDICTION AND REGULATION OF THE SECURITIES AND
EXCHANGE COMMISSION OF THE FEDERAL GOVERNMENT, OR (D) IS ANY OTHER ENTI-
TY OTHERWISE AUTHORIZED TO ACT IN THIS STATE AS A TRUSTEE PURSUANT TO
THE PROVISIONS OF AN ACT OF CONGRESS ENTITLED "EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974" AS SUCH PROVISIONS MAY BE AMENDED FROM TIME
TO TIME.
(D) QUALIFIED TAXPAYER. FOR PURPOSES OF THIS SECTION, THE TERM "QUALI-
FIED TAXPAYER" MEANS, WITH RESPECT TO ANY TAXABLE YEAR, A RESIDENT INDI-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10987-02-3
S. 5463 2
VIDUAL OF THE STATE WHOSE FEDERAL ADJUSTED GROSS INCOME IS LESS THAN
FIFTY THOUSAND DOLLARS.
(E) QUALIFIED DISTRIBUTION. THE TERM "QUALIFIED DISTRIBUTION" MEANS
ANY AMOUNT PAID TO THE ACCOUNT BENEFICIARY, PROVIDED THAT AGGREGATE
PAYMENTS SHALL NOT EXCEED TEN PERCENT OF THE FUNDS IN SUCH ACCOUNT
DURING A GIVEN TAXABLE YEAR.
2. FUNCTIONS OF THE COMMISSIONER. (A) THE COMMISSIONER SHALL IMPLEMENT
THE PROGRAM UNDER THE TERMS AND CONDITIONS ESTABLISHED BY THIS SECTION.
THE COMMISSIONER SHALL HAVE THE AUTHORITY AND IT SHALL BE HIS OR HER
RESPONSIBILITY TO:
(I) DEVELOP AND IMPLEMENT THE PROGRAM IN A MANNER CONSISTENT WITH THE
PROVISIONS OF THIS SECTION THROUGH RULES AND REGULATIONS ESTABLISHED IN
ACCORDANCE WITH THE STATE ADMINISTRATIVE PROCEDURE ACT;
(II) ENGAGE THE SERVICES OF CONSULTANTS ON A CONTRACT BASIS FOR
RENDERING PROFESSIONAL AND TECHNICAL ASSISTANCE AND ADVICE;
(III) CHARGE, IMPOSE, AND COLLECT ADMINISTRATIVE FEES AND SERVICE
CHARGES IN CONNECTION WITH ANY AGREEMENT, CONTRACT OR TRANSACTION RELAT-
ING TO THE PROGRAM;
(IV) DEVELOP MARKETING PLANS AND PROMOTION MATERIAL;
(V) ESTABLISH THE METHODS BY WHICH THE FUNDS HELD IN SUCH ACCOUNTS BE
DISPERSED;
(VI) ESTABLISH THE METHOD BY WHICH FUNDS SHALL BE ALLOCATED TO PAY FOR
ADMINISTRATIVE COSTS; AND
(VII) DO ALL THINGS NECESSARY AND PROPER TO CARRY OUT THE PURPOSES OF
THIS SECTION.
3. POWERS OF THE COMMISSIONER. (A) THE COMMISSIONER MAY IMPLEMENT THE
PROGRAM THROUGH USE OF FINANCIAL ORGANIZATIONS AS ACCOUNT DEPOSITORIES
AND MANAGERS. UNDER THE PROGRAM, QUALIFIED TAXPAYERS MAY ESTABLISH
ACCOUNTS DIRECTLY WITH AN ACCOUNT DEPOSITORY.
(B) THE COMMISSIONER MAY SOLICIT PROPOSALS FROM FINANCIAL ORGANIZA-
TIONS TO ACT AS DEPOSITORIES AND MANAGERS OF THE PROGRAM. FINANCIAL
ORGANIZATIONS SUBMITTING PROPOSALS SHALL DESCRIBE THE INVESTMENT INSTRU-
MENT WHICH WILL BE HELD IN ACCOUNTS. THE COMMISSIONER SHALL SELECT AS
PROGRAM DEPOSITORIES AND MANAGERS THE FINANCIAL ORGANIZATION, FROM AMONG
THE BIDDING FINANCIAL ORGANIZATIONS THAT DEMONSTRATES THE MOST ADVANTA-
GEOUS COMBINATION, BOTH TO POTENTIAL PROGRAM PARTICIPANTS AND THE STATE,
OF THE FOLLOWING FACTORS:
(I) FINANCIAL STABILITY AND INTEGRITY OF THE FINANCIAL ORGANIZATION;
(II) THE SAFETY OF THE INVESTMENT INSTRUMENT BEING OFFERED;
(III) THE ABILITY OF THE FINANCIAL ORGANIZATION TO SATISFY RECORDKEEP-
ING AND REPORTING REQUIREMENTS;
(IV) THE FINANCIAL ORGANIZATION'S PLAN FOR PROMOTING THE PROGRAM AND
THE INVESTMENT IT IS WILLING TO MAKE TO PROMOTE THE PROGRAM;
(V) THE FEES, IF ANY, PROPOSED TO BE CHARGED TO PERSONS FOR OPENING
ACCOUNTS;
(VI) THE ABILITY OF BANKING ORGANIZATIONS TO ACCEPT ELECTRONIC WITH-
DRAWALS, INCLUDING PAYROLL DEDUCTION PLANS; AND
(VII) OTHER BENEFITS TO THE STATE OR ITS RESIDENTS INCLUDED IN THE
PROPOSAL, INCLUDING FEES PAYABLE TO THE STATE TO COVER EXPENSES OF OPER-
ATION OF THE PROGRAM.
(C) THE COMMISSIONER MAY ENTER INTO A CONTRACT WITH A FINANCIAL ORGAN-
IZATION. SUCH FINANCIAL ORGANIZATION MANAGEMENT MAY PROVIDE ONE OR MORE
TYPES OF INVESTMENT INSTRUMENT.
(D) THE COMMISSIONER MAY SELECT MORE THAN ONE FINANCIAL ORGANIZATION
FOR THE PROGRAM.
S. 5463 3
(E) A MANAGEMENT CONTRACT SHALL INCLUDE, AT A MINIMUM, TERMS REQUIRING
THE FINANCIAL ORGANIZATION TO:
(I) KEEP ADEQUATE RECORDS OF EACH ACCOUNT, KEEP EACH ACCOUNT SEGRE-
GATED FROM EACH OTHER ACCOUNT, AND PROVIDE THE COMMISSIONER WITH THE
INFORMATION NECESSARY TO PREPARE THE STATEMENTS REQUIRED BY SUBDIVISION
FOUR OF THIS SECTION;
(II) COMPILE AND TOTAL INFORMATION CONTAINED IN STATEMENTS REQUIRED TO
BE PREPARED UNDER SUBDIVISION FOUR OF THIS SECTION AND PROVIDE SUCH
COMPILATIONS TO THE COMMISSIONER;
(III) IF THERE IS MORE THAN ONE PROGRAM MANAGER, PROVIDE THE COMMIS-
SIONER WITH SUCH INFORMATION NECESSARY TO DETERMINE COMPLIANCE WITH
SUBDIVISION FOUR OF THIS SECTION;
(IV) PROVIDE THE COMMISSIONER OR HIS OR HER DESIGNEE ACCESS TO THE
BOOKS AND RECORDS OF THE PROGRAM MANAGER TO THE EXTENT NEEDED TO DETER-
MINE COMPLIANCE WITH THE CONTRACT;
(V) HOLD ALL ACCOUNTS FOR THE BENEFIT OF THE ACCOUNT BENEFICIARY;
(VI) BE AUDITED AT LEAST ANNUALLY BY A FIRM OF CERTIFIED PUBLIC
ACCOUNTANTS SELECTED BY THE PROGRAM MANAGER AND THAT THE RESULTS OF SUCH
AUDIT BE PROVIDED TO THE COMMISSIONER;
(VII) PROVIDE THE COMMISSIONER WITH COPIES OF ALL REGULATORY FILINGS
AND REPORTS MADE BY IT DURING THE TERM OF THE MANAGEMENT CONTRACT OR
WHILE IT IS HOLDING ANY ACCOUNTS, OTHER THAN CONFIDENTIAL FILINGS OR
REPORTS THAT WILL NOT BECOME PART OF THE PROGRAM. THE PROGRAM MANAGER
SHALL MAKE AVAILABLE FOR REVIEW BY THE COMMISSIONER THE RESULTS OF ANY
PERIODIC EXAMINATION OF SUCH MANAGER BY ANY STATE OR FEDERAL BANKING,
INSURANCE, OR SECURITIES COMMISSION, EXCEPT TO THE EXTENT THAT SUCH
REPORT OR REPORTS MAY NOT BE DISCLOSED UNDER APPLICABLE LAW OR THE RULES
OF SUCH COMMISSION; AND
(VIII) ENSURE THAT ANY DESCRIPTION OF THE PROGRAM, WHETHER IN WRITING
OR THROUGH THE USE OF ANY MEDIA, IS CONSISTENT WITH THE MARKETING PLAN
DEVELOPED PURSUANT TO THE PROVISIONS OF SUBDIVISION TWO OF THIS SECTION.
(F) THE COMMISSIONER MAY PROVIDE THAT AN AUDIT SHALL BE CONDUCTED OF
THE OPERATIONS AND FINANCIAL POSITION OF THE PROGRAM DEPOSITORY AND
MANAGER AT ANY TIME IF THE COMMISSIONER HAS ANY REASON TO BE CONCERNED
ABOUT THE FINANCIAL POSITION, THE RECORDKEEPING PRACTICES, OR THE STATUS
OF ACCOUNTS OF SUCH PROGRAM DEPOSITORY AND MANAGER.
(G) DURING THE TERM OF ANY CONTRACT WITH A PROGRAM MANAGER, THE
COMMISSIONER SHALL CONDUCT AN EXAMINATION OF SUCH MANAGER AND ITS HANDL-
ING OF ACCOUNTS. SUCH EXAMINATION SHALL BE CONDUCTED AT LEAST BIENNIALLY
IF SUCH MANAGER IS NOT OTHERWISE SUBJECT TO PERIODIC EXAMINATION BY THE
SUPERINTENDENT OF FINANCIAL SERVICES, THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR OTHER SIMILAR ENTITY.
(H) (I) IF SELECTION OF A FINANCIAL ORGANIZATION AS A PROGRAM MANAGER
OR DEPOSITORY IS NOT RENEWED, AFTER THE END OF ITS TERM:
(A) ACCOUNTS PREVIOUSLY ESTABLISHED AND HELD IN INVESTMENT INSTRUMENTS
AT SUCH FINANCIAL ORGANIZATION MAY BE TERMINATED;
(B) ADDITIONAL CONTRIBUTIONS MAY BE MADE TO SUCH ACCOUNTS;
(C) NO NEW ACCOUNTS MAY BE PLACED WITH SUCH FINANCIAL ORGANIZATION;
AND
(D) EXISTING ACCOUNTS HELD BY SUCH DEPOSITORY SHALL REMAIN SUBJECT TO
ALL OVERSIGHT AND REPORTING REQUIREMENTS ESTABLISHED BY THE COMMISSION-
ER.
(II) IF THE COMMISSIONER TERMINATES A FINANCIAL ORGANIZATION AS A
PROGRAM MANAGER OR DEPOSITORY, HE OR SHE SHALL TAKE CUSTODY OF ACCOUNTS
HELD BY SUCH FINANCIAL ORGANIZATION AND SHALL SEEK TO PROMPTLY TRANSFER
SUCH ACCOUNTS TO ANOTHER FINANCIAL ORGANIZATION THAT IS SELECTED AS A
S. 5463 4
PROGRAM MANAGER OR DEPOSITORY AND INTO INVESTMENT INSTRUMENTS AS SIMILAR
TO THE ORIGINAL INSTRUMENTS AS POSSIBLE.
(I) THE COMMISSIONER MAY ENTER INTO SUCH CONTRACTS AS HE OR SHE DEEMS
NECESSARY AND PROPER FOR THE IMPLEMENTATION OF THE PROGRAM.
4. PROGRAM DESCRIPTION AND REQUIREMENTS; PERSONAL WEALTH BUILDING
SAVINGS ACCOUNT. (A) PERSONAL WEALTH BUILDING SAVINGS ACCOUNTS ESTAB-
LISHED PURSUANT TO THE PROVISIONS OF THIS SECTION SHALL BE GOVERNED BY
THE PROVISIONS OF THIS SUBDIVISION.
(B) A PERSONAL WEALTH BUILDING SAVINGS ACCOUNT MAY BE OPENED BY ANY
QUALIFIED TAXPAYER WHO DESIRES TO SAVE MONEY FOR THE PURPOSES OF BUILD-
ING PERSONAL WEALTH.
(I) AN APPLICATION FOR SUCH ACCOUNT SHALL BE IN THE FORM PRESCRIBED BY
THE PROGRAM AND SHALL CONTAIN THE NAME, ADDRESS AND SOCIAL SECURITY
NUMBER OF THE QUALIFIED TAXPAYER, AND SUCH OTHER INFORMATION AS THE
PROGRAM MAY REQUIRE.
(II) THE COMMISSIONER MAY ESTABLISH A NOMINAL FEE FOR SUCH APPLICA-
TION.
(C) ANY PERSON, INCLUDING THE QUALIFIED TAXPAYER, MAY MAKE CONTRIB-
UTIONS TO THE ACCOUNT AFTER THE ACCOUNT IS OPENED.
(D) CONTRIBUTIONS TO ACCOUNTS MAY BE MADE ONLY IN CASH.
(E) IN THE CASE OF A QUALIFIED TAXPAYER, THERE SHALL BE ALLOWED AS A
DEDUCTION FOR THE TAXABLE YEAR AN AMOUNT EQUAL TO THE AGGREGATE AMOUNT
PAID IN CASH DURING SUCH TAXABLE YEAR BY OR ON BEHALF OF SUCH INDIVIDUAL
TO AN ACCOUNT OF SUCH INDIVIDUAL.
(F) THERE SHALL BE NO MINIMUM OR MAXIMUM CONTRIBUTION REQUIREMENT.
HOWEVER, AGGREGATE CONTRIBUTIONS MAY NOT EXCEED FIVE THOUSAND DOLLARS IN
A GIVEN TAXABLE YEAR.
(G) AN ACCOUNT ESTABLISHED UNDER THIS SECTION IS EXEMPT FROM TAXATION
UNDER THIS CHAPTER UNLESS SUCH ACCOUNT HAS CEASED TO BE A PERSONAL
WEALTH BUILDING SAVINGS ACCOUNT.
(H) WITH RESPECT TO ANY TAXABLE YEAR, IF THE FEDERAL ADJUSTED GROSS
INCOME OF THE BENEFICIARY EXCEEDS FIFTY THOUSAND DOLLARS, ALL PERSONAL
WEALTH BUILDING SAVINGS ACCOUNTS OF SUCH INDIVIDUAL SHALL CEASE TO BE
SUCH ACCOUNTS AND THE BALANCE OF ALL SUCH ACCOUNTS SHALL BE TREATED AS
(I) DISTRIBUTED TO SUCH INDIVIDUAL, AND (II) NOT PAID IN A QUALIFIED
DISTRIBUTION.
(I) TAX TREATMENT OF DISTRIBUTIONS. (I) GENERAL. IN GENERAL, ANY
AMOUNT PAID OR DISTRIBUTED OUT OF A PERSONAL WEALTH BUILDING SAVINGS
ACCOUNT SHALL BE INCLUDED IN GROSS INCOME.
(II) ADDITIONAL TAX ON NON-QUALIFIED DISTRIBUTIONS. IN ADDITION TO ANY
OTHER TAX IMPOSED BY THIS CHAPTER, ANY NON-QUALIFIED DISTRIBUTION FROM A
PERSONAL WEALTH BUILDING SAVINGS ACCOUNT SHALL BE SUBJECT TO A FIFTEEN
PERCENT SURCHARGE ON THE AMOUNT OF SUCH NON-QUALIFYING DISTRIBUTION.
SUCH SURCHARGE SHALL NOT APPLY IF THE PAYMENT OR DISTRIBUTION IS MADE
AFTER THE ACCOUNT BENEFICIARY BECOMES DISABLED OR DIES.
(III) ROLLOVER CONTRIBUTIONS. FOR PURPOSES OF THIS SECTION, ANY AMOUNT
PAID OR DISTRIBUTED FROM AN ACCOUNT TO THE ACCOUNT BENEFICIARY SHALL BE
TREATED AS A QUALIFIED DISTRIBUTION TO THE EXTENT THE AMOUNT RECEIVED IS
PAID INTO A PERSONAL WEALTH BUILDING SAVINGS ACCOUNT FOR THE BENEFIT OF
SUCH BENEFICIARY NOT LATER THAN THE SIXTIETH DAY AFTER THE DAY ON WHICH
THE BENEFICIARY RECEIVES THE PAYMENT OR DISTRIBUTION.
(IV) TREATMENT AFTER DEATH OF ACCOUNT BENEFICIARY. IF, BY REASON OF
THE DEATH OF THE ACCOUNT BENEFICIARY, ANY PERSON ACQUIRES THE ACCOUNT
BENEFICIARY'S INTEREST IN A PERSONAL WEALTH BUILDING SAVINGS ACCOUNT:
(A) SUCH ACCOUNT SHALL CEASE TO BE A PERSONAL WEALTH BUILDING SAVINGS
ACCOUNT AS OF THE DATE OF DEATH, AND
S. 5463 5
(B) AN AMOUNT EQUAL TO THE FAIR MARKET VALUE OF THE ASSETS IN SUCH
ACCOUNT ON SUCH DATE SHALL BE INCLUDED IN SUCH PERSON'S GROSS INCOME FOR
THE TAXABLE YEAR WHICH INCLUDES SUCH DATE IF SUCH PERSON IS NOT THE
ESTATE OF SUCH BENEFICIARY; OR IF SUCH PERSON IS THE ESTATE OF SUCH
BENEFICIARY, IN SUCH BENEFICIARY'S GROSS INCOME FOR THE LAST TAXABLE
YEAR OF SUCH BENEFICIARY.
(J) THE PROGRAM SHALL PROVIDED SEPARATE ACCOUNTING FOR EACH ACCOUNT
BENEFICIARY.
(K) NO ACCOUNT BENEFICIARY OF ANY ACCOUNT SHALL BE PERMITTED TO DIRECT
THE INVESTMENT OF ANY CONTRIBUTIONS TO AN ACCOUNT OR THE EARNINGS THERE-
ON.
(L)(I) IF THERE IS ANY DISTRIBUTION FROM AN ACCOUNT TO AN ACCOUNT
BENEFICIARY DURING A CALENDAR YEAR, SUCH DISTRIBUTION SHALL BE REPORTED
TO THE INTERNAL REVENUE SERVICE AND THE QUALIFIED TAXPAYER TO THE EXTENT
REQUIRED BY FEDERAL LAW OR REGULATION.
(II) STATEMENTS SHALL BE PROVIDED TO EACH QUALIFIED TAXPAYER AT LEAST
ONCE EACH YEAR WITHIN SIXTY DAYS AFTER THE END OF THE TWELVE MONTH PERI-
OD TO WHICH THEY RELATE. THE STATEMENT SHALL IDENTIFY THE CONTRIBUTIONS
MADE DURING A PRECEDING TWELVE MONTH PERIOD, THE TOTAL CONTRIBUTIONS
MADE TO THE ACCOUNT THROUGH THE END OF THE PERIOD, THE VALUE OF THE
ACCOUNT AT THE END OF SUCH PERIOD, DISTRIBUTIONS MADE DURING SUCH PERIOD
AND ANY OTHER INFORMATION THAT THE COMMISSIONER SHALL REQUIRE TO BE
REPORTED TO THE QUALIFIED TAXPAYER.
(III) STATEMENTS AND INFORMATION RELATING TO ACCOUNTS SHALL BE
PREPARED AND FILED TO THE EXTENT REQUIRED BY FEDERAL AND STATE TAX LAW.
(M) AN ANNUAL FEE MAY BE IMPOSED UPON THE QUALIFIED TAXPAYER FOR THE
MAINTENANCE OF THE ACCOUNT.
(N) THE PROGRAM SHALL DISCLOSE THE FOLLOWING INFORMATION IN WRITING TO
EACH QUALIFIED TAXPAYER AND PROSPECTIVE QUALIFIED TAXPAYER OF A PERSONAL
WEALTH BUILDING SAVINGS ACCOUNT:
(I) THE TERMS AND CONDITIONS FOR PURCHASING A PERSONAL WEALTH BUILDING
SAVINGS ACCOUNT;
(II) THE PERSON OR ENTITY ENTITLED TO TERMINATE THE PERSONAL WEALTH
BUILDING SAVINGS AGREEMENT;
(III) THE PERIOD OF TIME DURING WHICH A BENEFICIARY MAY RECEIVE BENE-
FITS UNDER THE PERSONAL WEALTH BUILDING SAVINGS AGREEMENT;
(IV) THE TERMS AND CONDITIONS UNDER WHICH MONEY MAY BE WHOLLY OR
PARTIALLY WITHDRAWN FROM THE PROGRAM, INCLUDING, BUT NOT LIMITED TO, ANY
REASONABLE CHARGES AND FEES THAT MAY BE IMPOSED FOR WITHDRAWAL;
(V) THE PROBABLE TAX CONSEQUENCES ASSOCIATED WITH CONTRIBUTIONS TO AND
DISTRIBUTIONS FROM ACCOUNTS; AND
(VI) ALL OTHER RIGHTS AND OBLIGATIONS PURSUANT TO PERSONAL WEALTH
BUILDING SAVINGS AGREEMENTS, AND ANY OTHER TERMS, CONDITIONS AND
PROVISIONS DEEMED NECESSARY AND APPROPRIATE BY THE COMMISSIONER.
(O) PERSONAL WEALTH BUILDING SAVINGS AGREEMENTS SHALL BE SUBJECT TO
SECTION FOURTEEN-C OF THE BANKING LAW AND THE "TRUTH-IN-SAVINGS" REGU-
LATIONS PROMULGATED THEREUNDER.
S 2. Subsection (b) of section 612 of the tax law is amended by adding
a new paragraph 40 to read as follows:
(40) ANY NON-QUALIFYING DISTRIBUTIONS MADE FROM A PERSONAL WEALTH
BUILDING SAVINGS ACCOUNT. THIS SHALL NOT INCLUDE ANY DISTRIBUTIONS THAT
ARE EXEMPT FROM TAXATION AS SPECIFIED IN PARAGRAPH (E) OF SUBDIVISION
ONE OF SECTION THIRTY-NINE OF THIS CHAPTER.
S 3. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 40 to read as follows:
S. 5463 6
(40) AN AMOUNT EQUAL TO ANY QUALIFIED CONTRIBUTION TO A PERSONAL
WEALTH BUILDING SAVINGS ACCOUNT ESTABLISHED PURSUANT TO SECTION THIRTY-
NINE OF THIS CHAPTER.
S 4. Section 601 of the tax law is amended by adding a new subsection
(j) to read as follows:
(J) PERSONAL WEALTH BUILDING SAVINGS ACCOUNTS. ANY PERSONAL WEALTH
BUILDING SAVINGS ACCOUNT PROPERLY ESTABLISHED UNDER SECTION THIRTY-NINE
OF THIS CHAPTER SHALL NOT BE SUBJECT TO TAX UNDER THIS ARTICLE.
S 5. This act shall take effect immediately and shall apply to taxable
years commencing after such effective date. Effective immediately, the
commissioner of taxation and finance may add, amend, or repeal any rule
or regulation necessary to timely implement the provisions of this act
on its effective date.
