S5596A-2011 Actions

• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 4, 2012: returned to senate
• Jan 4, 2012: died in assembly
• Jun 15, 2011: referred to ways and means
• Jun 15, 2011: DELIVERED TO ASSEMBLY
• Jun 15, 2011: PASSED SENATE
• Jun 15, 2011: ORDERED TO THIRD READING CAL.1291
• Jun 15, 2011: COMMITTEE DISCHARGED AND COMMITTED TO RULES
• Jun 11, 2011: PRINT NUMBER 5596A
• Jun 11, 2011: AMEND (T) AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jun 6, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S5596A-2011 Meetings

S5596A-2011 Votes

S5596A-2011 Memo

BILL NUMBER:S5596A

TITLE OF BILL:
An act
to amend the tax law, in relation to creating regions one and two for
the metropolitan commuter transportation mobility tax; to amend the
state
finance law, in relation to aid and incentives for municipalities; to
amend the state finance law, in relation to transfer of moneys in the
metropolitan mass transportation operating assistance account; to amend
the tax law and the state finance law, in relation to the deposit of
certain motor fuel and diesel fuel taxes; to dedicate certain monies to
the metropolitan transportation authority; and to repeal section 3609-g
of the education law

PURPOSE OR GENERAL IDEA OF BILL:
This bill establishes regions one and two for the purpose of phasing
out the MTA payroll mobility tax (PMT) over two and a half years.
"Region one" contains New York City's five boroughs and "region two"
contains the counties of Dutchess, Nassau, Orange, Putnam, Rockland,
Suffolk, and Westchester.
For region one, the PMT shall remain at the 0.34% level through
January 1, 2013, when it shall be reduced to 0.28%. On January 1,
2014, the tax shall be reduced further to 0.21%. For region two, the
tax is reduced to 0.23% in the first year (2012 - 2013) and to 0.12%
in the second year (2013 - 2014). On January 1, 2014, the tax will
cease to be in effect in region two. The MTA PMT shall be eliminated
entirely for public and non-public schools, the self-employed, and
employers with twenty five or fewer employees beginning on January 1,
2012. It is the intent of the legislature that the MTA shall address
the reductions in tax provided for in this legislation without any
increase in fares, or any decrease in service provided by the MTA.

SUMMARY OF PROVISIONS:
Section One amends section 800 of the tax law, as added by section 1
of part C of chapter 25 of the laws of 2009 to define: "region one"
as counties contained wholly within a city with a population of one
million or more (New York City's five boroughs), "region two" as the
counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and
Westchester, and the metropolitan commuter transportation district
("MCTD") as the combination of these two regions. This section also
excludes from the definition of an "employer" for the purposes of the
imposition of this tax: agencies and instrumentalities of the United
States, the United Nations, an interstate agency or public
corporation created pursuant to an agreement or compact with another
state or with Canada, public primary and secondary schools,
non-public primary or secondary schools who have tax-exempt status
within the MCTD, employers with twenty-five or less employees within
the MCTD and self-employed individuals within the MCTD.

Section Two amends section 801 of the tax law. as added by section 1
of part C of chapter 25 of the laws of 2009 to provide a reduction in
the tax imposed on region one employers from 0.34% to 0.28% for one
year commencing January 1, 2013 and from 0.28% to 0.21% commencing
January 1, 2014. For region two, the tax imposed shall be reduced to


0.23% on January 1, 2012, 0.12% on January 1, 2013, and fully
eliminated as of January 1, 2014.

Section Three repeals Section 3609-g of the education law, which
provided for the reimbursement of public schools for their MTA PMT
payments.

Sections Four through Twelve provide measures to mitigate the
immediate fiscal impact of this legislation on the MTA's operating
budget. These measures include: $150 million in special aid and
incentives to the City of New York for the NYC Transit Authority
(Section Four); directing that any surplus moneys in the metropolitan
mass transportation operating assistance account (MMTOA) be used only
to support transit systems (Section Five);
dedicating a portion of the prepayment of gasoline and diesel fuel
sales tax to MMTOA (Sections Six through Eleven); section Twelve
dedicates a maximum of $100 million from Regional Greenhouse Gas
Initiative (RGGI) and Energy Efficiency Portfolio Standards (EEPS)
revenues to the MTA.

It should be noted that the dedication of gas and diesel sales tax
revenues provided for in this legislation does not represent any
increase these taxes.
It is a dedication of existing tax revenues only.

Section Thirteen provides the effective dates.

JUSTIFICATION:
Enacted in 2009, article 23 of the tax law imposed an onerous tax on
employers in the areas serviced by the Metropolitan Transportation
Authority. This region, called the Metropolitan Commuter
Transportation District (MCTD), includes New York City's five
boroughs as well as the surrounding counties of Dutchess, Nassau,
Orange, Putnam, Rockland, Suffolk and Westchester. Employers who are
required to withhold New York state income tax from employee wages
and whose payroll exceeds $2,500 quarterly are currently required to
pay a 0.34% tax on payroll expenses allocated to the MCTD. This
amounts to $.34 per $100.00 of their payroll. Self-employed
individuals who make more than $10,000 during the tax year are
subject to the same 0.34% tax rate on their net earnings from
self-employment allocated to the MCTD.

Taxing existing jobs and new job creation has had a crippling effect
on the economy of the MCTD. This tax is having a severe negative
impact on economic recovery, and is discouraging growth of new
business and job creation at a time when the government should be
promoting these objectives.

To address the negative effect of this tax on jobs and economic growth
as well as the effect on school district property taxes, the tax
shall immediately be repealed for the self employed and for employers
with twenty five or fewer employees as well as public and non-public
schools. Under current law, public schools are required to pay the
mobility tax; however, they are reimbursed by the state for this
cost. This legislation fully exempts public schools from having to
pay the tax. This relief applies to employers, public and non-public


schools and the self-employed throughout the entire MCTD, including
New York City.

A gradual reduction and repeal permits the MTA to absorb the reduction
of PMT revenue without disruption of services or the need for fare
increases. This legislation would reduce the amount of the tax
imposed on employers of 26 or more employees in the seven counties
outside of New York City to 0.23% beginning on January 1, 2012, and
again to 0.12% beginning January 1, 2013, with a complete elimination
one year later on January 1, 2014. For New York City employers of 26
or more, the tax would remain at the 0.34% level within
the five boroughs until January 1, 2013, when it shall be reduced to
0.28% until January 1, 2014, when the tax will be reduced again to
0.21%.

This legislation's expedited reduction and ultimate repeal for the
counties outside New York city reflects the fact that these areas are
not as reliant on the MTA's services. While residents of New York
city's five boroughs utilize the subways and busses in their daily
life, many residents of the surrounding counties use MTA services
infrequently. A review of ridership indicates that MTA service
utilization rates are more than eight times greater in New York city
than in outlying areas.

When fully implemented in 2014, the estimated $840.9 million in tax
savings generated by this legislation represents a tiny portion of
the MTA's expected $15 billion 2014 operating budget. The
legislature's intent and expectation in enacting this legislation is
that the MTA can absorb the gradual loss of PMT revenue through
improved operating efficiencies, and without resorting to fare
increases or service reductions. However, this legislation also
includes several measures to mitigate the immediate fiscal impact of
the PMT phase-out on the MTA's operating budget and in order to
provide the MTA with the opportunity to implement greater operating
efficiencies. These mitigation measures will result in the MTA having
to absorb only $354.3 million in foregone PMT revenue by 2014, a tiny
2.4% of the MTA expected $15 billion operating budget.

As the economy of the MCTD improves through the reduction and repeal
of the MTA PMT, the various other sources of revenue for the MTA will
also recover. The legislature expects that this economic recovery, as
well as the increased operating efficiencies implemented by the MTA
due to to the repeal of the PMT, will provide the MTA with adequate
operating revenues in the years ahead. Clearly, there is no need for
the MTA to have to resort to fare hikes or service cuts as a result
of enacting this legislation.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
When fully implemented on January 1, 2014, the total tax savings
generated by this legislation is estimated at $840.9 million. The
mitigation measures provided to the MTA by this legislation are
expected to offset approximately $486.6 million of the estimated tax
savings, for a net $354.3 million in foregone revenue for the MTA.


EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that the
provisions of sections one, six, nine, ten and eleven of this act
shall take effect January 1, 2012; provided further that sections
three and seven of this act shall take effect on January 1, 2013,;
provided, further, that section eight of this act shall take effect
on January 1, 2014; provided, further, that amendments to paragraph
(a) of subdivision 3 of section 89-b of the state finance law, made
by section ten of this act shall be subject to the expiration and
reversion of such paragraph pursuant to section 13 of part U1 of
chapter 62 of the laws of 2003, when upon such date the provisions of
section eleven of this act shall take effect.

S5596A-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 5596--A
 2011-2012 Regular Sessions
 I N  SENATE
 June 6, 2011
 
 Introduced  by  Sens. ZELDIN, MARTINS, BALL, BONACIC, CARLUCCI, JOHNSON,
 LARKIN, LAVALLE, SALAND -- read twice and ordered  printed,  and  when
 printed to be committed to the Committee on Investigations and Govern
 ment   Operations  --  committee  discharged,  bill  amended,  ordered
 reprinted as amended and recommitted to said committee
 

AN ACT to amend the tax law, in relation to creating regions one and two
 for the metropolitan commuter transportation mobility  tax;  to  amend
 the  state  finance law, in relation to aid and incentives for munici
 palities; to amend the state finance law, in relation to  transfer  of
 moneys  in  the  metropolitan mass transportation operating assistance
 account; to amend the tax law and the state finance law,  in  relation
 to  the  deposit of certain motor fuel and diesel fuel taxes; to dedi
 cate certain monies to the metropolitan transportation authority;  and
 to repeal section 3609-g of the education law
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1.

Section 800 of the tax law, as added by section 1 of part C
 of chapter 25 of the laws of 2009, is amended to read as follows:

 

S 800. Definitions. For the purposes of this article:

 (a) Metropolitan commuter transportation  district.  The  metropolitan
 commuter  transportation district ("MCTD") means [the area] THE COMBINA
 TION OF REGION ONE AND REGION TWO of the state included in the  district
 created  and  governed by section twelve hundred sixty-two of the public
 authorities law.
 (b) REGION ONE. REGION ONE MEANS COUNTIES CONTAINED  WHOLLY  WITHIN  A
 CITY WITH A POPULATION OF ONE MILLION OR MORE.
 (C)  REGION  TWO.  REGION  TWO MEANS THE COUNTIES OF DUTCHESS, NASSAU,
 ORANGE, PUTNAM, ROCKLAND, SUFFOLK, AND WESTCHESTER.
 (D) Employer. Employer means  an  employer  required  by  section  six
 hundred  seventy-one  of  this  chapter  to deduct and withhold tax from
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD11987-08-1
 
       S. 5596--A                          2
 wages, that has a payroll expense in excess of two thousand five hundred
 dollars in any calendar quarter; other than
 (1) any agency or instrumentality of the United States;
 (2) the United Nations; [or]
 (3)  an interstate agency or public corporation created pursuant to an
 agreement or compact with another state or the Dominion of Canada[.];
 (4) A NON-PUBLIC  PRIMARY  OR  SECONDARY  SCHOOL  THAT  SATISFIES  THE
 REQUIREMENTS PRESCRIBED BY LAW FOR NON-PUBLIC SCHOOLS IN THIS STATE, AND
 THAT  HAS QUALIFIED FOR FEDERAL TAX EXEMPTION UNDER SECTION 501(C)(3) OF
 THE INTERNAL REVENUE CODE;
 (5) ANY PUBLIC  SCHOOL  DISTRICT,  BOARD  OF  COOPERATIVE  EDUCATIONAL
 SERVICES,  OR  SPECIAL  ACT  SCHOOL DISTRICT, AS DEFINED IN SECTION FOUR
 THOUSAND ONE OF THE EDUCATION LAW; OR
 (6) AN EMPLOYER THAT IS LOCATED IN THE MCTD WITH TWENTY-FIVE  OR  LESS
 COVERED EMPLOYEES OR AN INDIVIDUAL HAVING NET EARNINGS FROM SELF EMPLOY
 MENT FROM ACTIVITY WITHIN THE MCTD.
 [(c)]  (E)  Payroll  expense.  Payroll expense means wages and compen
 sation as defined in sections 3121 and 3231 of the internal revenue code
 (without regard to section  3121(a)(1)  and  section  3231(e)(2)(A)(i)),
 paid to all covered employees.
 [(d)]  (F) Covered employee. Covered employee means an employee who is
 employed within REGION ONE OR REGION TWO OF the MCTD.
 [(e)] (G) Net earnings from self-employment. Net earnings  from  self
 employment  has  the  same  meaning  as  in section 1402 of the internal
 revenue code.
 

S 2.

Section 801 of the tax law, as added by section 1 of  part  C  of
 chapter 25 of the laws of 2009, is amended to read as follows:

 

S 801. Imposition of tax and rate. (a) For the sole purpose of provid
 ing  an  additional stable and reliable dedicated funding source for the
 metropolitan transportation authority and its  subsidiaries  and  affil
 iates to preserve, operate and improve essential transit and transporta
 tion  services  in  the metropolitan commuter transportation district, a
 tax is hereby imposed [at a rate of thirty-four hundredths (.34) percent
 of] ON: (1) the payroll expense of every employer who engages  in  busi
 ness  within  the  MCTD  and  (2)  PRIOR  TO JANUARY FIRST, TWO THOUSAND
 TWELVE, the net earnings from self-employment of  individuals  that  are
 attributable  to  the  MCTD  if  such  earnings attributable to the MCTD
 exceed ten thousand dollars for the tax year[.] AT THE FOLLOWING RATES:

 (I) FOR REGION ONE, ON OR AFTER JANUARY FIRST, TWO THOUSAND  NINE  AND
 BEFORE  JANUARY  FIRST,  TWO  THOUSAND  THIRTEEN, THIRTY-FOUR HUNDREDTHS
 (.34) PERCENT; ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND  THIRTEEN  AND
 BEFORE  JANUARY  FIRST,  TWO  THOUSAND FOURTEEN, TWENTY-EIGHT HUNDREDTHS
 (.28) PERCENT; AND ON JANUARY FIRST, TWO THOUSAND FOURTEEN AND THEREAFT
 ER, TWENTY-ONE HUNDREDTHS (.21) PERCENT.
 (II) FOR REGION TWO, ON OR AFTER JANUARY FIRST, TWO THOUSAND NINE  AND
 BEFORE  JANUARY FIRST, TWO THOUSAND TWELVE, THIRTY-FOUR HUNDREDTHS (.34)
 PERCENT; ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE AND BEFORE JANU
 ARY FIRST, TWO THOUSAND THIRTEEN, TWENTY-THREE HUNDREDTHS (.23) PERCENT;
 ON OR AFTER JANUARY FIRST, TWO  THOUSAND  THIRTEEN  AND  BEFORE  JANUARY
 FIRST,  TWO  THOUSAND  FOURTEEN, TWELVE HUNDREDTHS (.12) PERCENT; AND ON
 JANUARY FIRST, TWO THOUSAND FOURTEEN AND THEREAFTER, ZERO (0) PERCENT.
 (b)(1) [An] PRIOR TO JANUARY FIRST, TWO THOUSAND TWELVE, AN individual
 having net earnings from self-employment from activity both  within  and
 without the metropolitan commuter transportation district is required to
 allocate  and  apportion  such  net  earnings  to the MCTD in the manner
 
       S. 5596--A                          3
 required for allocation and apportionment of income under article  twen
 ty-two of this chapter.
 (2)  [In]  PRIOR TO JANUARY FIRST, TWO THOUSAND TWELVE, IN the case of
 individuals with earnings from self-employment, the  net  earnings  from
 self  employment  threshold  in  paragraph two of subsection (a) of this
 section will be computed on an individual basis  regardless  of  whether
 that individual filed a joint personal income tax return.
 (c) The determination of whether a covered employee is employed within
 REGION ONE OR REGION TWO OF the MCTD will be made by utilizing the rules
 applicable  to the jurisdiction of employment for purposes of the state
 wide wage reporting system under section one  hundred  seventy-one-a  of
 this chapter, AS ADDED BY CHAPTER FIVE HUNDRED FORTY-FIVE OF THE LAWS OF
 NINETEEN  HUNDRED  SEVENTY-EIGHT,  and substituting REGION ONE OR REGION
 TWO OF the MCTD for the state in that application.
 

S 3.

Section 3609-g of the education law is REPEALED.
 

S 4. Subdivision 10 of section 54 of the state finance law is  amended
 by adding a new paragraph j-1 to read as follows:

 J-1.  SPECIAL AID AND INCENTIVES FOR MUNICIPALITIES TO THE CITY OF NEW
 YORK. IN THE STATE FISCAL YEAR  COMMENCING  APRIL  FIRST,  TWO  THOUSAND
 FOURTEEN  AND  IN EACH STATE FISCAL YEAR THEREAFTER, A CITY WITH A POPU
 LATION OF ONE MILLION OR MORE SHALL RECEIVE ONE  HUNDRED  FIFTY  MILLION
 DOLLARS  PAYABLE ON OR BEFORE DECEMBER FIFTEENTH. SPECIAL AID AND INCEN
 TIVES FOR MUNICIPALITIES TO THE CITY OF NEW YORK  SHALL  BE  APPORTIONED
 AND  PAID  TO THE NEW YORK CITY TRANSIT AUTHORITY FOR THE PURPOSE OF THE
 SUPPORT OF MASS TRANSIT IN THE CITY OF NEW YORK.
 

S 5. Subdivision 7 of section 88-a of the state finance law is amended
 by adding a new paragraph (c) to read as follows:

 (C) IN THE STATE FISCAL YEAR  COMMENCING  APRIL  FIRST,  TWO  THOUSAND
 TWELVE,  AND  IN EACH STATE FISCAL YEAR THEREAFTER, MONEYS IN THE METRO
 POLITAN MASS TRANSPORTATION OPERATING ASSISTANCE ACCOUNT  SHALL  NOT  BE
 TRANSFERRED  TO THE GENERAL FUND OR OTHER STATE FUNDS OR ACCOUNTS EXCEPT
 FOR THE  PUBLIC  TRANSPORTATION  SYSTEMS  OPERATING  ASSISTANCE  ACCOUNT
 PROVIDED  THAT  ANY  MONEYS  TRANSFERRED  TO  THE  PUBLIC TRANSPORTATION
 SYSTEMS OPERATING ASSISTANCE ACCOUNT SHALL ONLY BE USED TO SUPPORT TRAN
 SIT SYSTEMS. IN ADDITION, MONEYS IN THE METROPOLITAN MASS TRANSPORTATION
 OPERATING ASSISTANCE ACCOUNT AND PUBLIC TRANSPORTATION SYSTEMS OPERATING
 ASSISTANCE ACCOUNT SHALL NOT  BE  APPROPRIATED  FOR  ANY  OTHER  PURPOSE
 EXCEPT FOR THE SUPPORT OF TRANSIT SYSTEMS.
 

S  6.  Subdivision  (d)  of  section 1102 of the tax law is amended by
 adding a new paragraph 1-a to read as follows:

 (1-A) EXCEPT AS OTHERWISE PROVIDED, ONE CENT PER GALLON OF  THE  TAXES
 COLLECTED  OR  RECEIVED IN ANY MONTH WITH RESPECT TO SUCH PREPAYMENT PER
 GALLON TAX IMPOSED BY THIS SECTION SHALL BE DEPOSITED PROPORTIONATELY AS
 FOLLOWS: (I) FOR MOTOR FUEL, EIGHTY-ONE AND FIVE-TENTHS PERCENT  IN  THE
 SPECIAL  OBLIGATIONS  AND  RESERVE  AND PAYMENT ACCOUNT OF THE DEDICATED
 HIGHWAY  AND  BRIDGE  TRUST  FUND  ESTABLISHED   PURSUANT   TO   SECTION
 EIGHTY-NINE-B  OF  THE  STATE  FINANCE  LAW AND EIGHTEEN AND FIVE-TENTHS
 PERCENT IN THE METROPOLITAN  MASS  TRANSPORTATION  OPERATING  ASSISTANCE
 ACCOUNT   ESTABLISHED   PURSUANT   TO   SUBDIVISION   SEVEN  OF  SECTION
 EIGHTY-EIGHT-A OF THE STATE FINANCE LAW; (II)  FOR  DIESEL  MOTOR  FUEL,
 SIXTY-THREE  PERCENT  IN THE SPECIAL OBLIGATIONS AND RESERVE AND PAYMENT
 ACCOUNT OF THE DEDICATED  HIGHWAY  AND  BRIDGE  TRUST  FUND  ESTABLISHED
 PURSUANT  TO SECTION EIGHTY-NINE-B  OF THE STATE FINANCE LAW AND THIRTY
 SEVEN PERCENT IN THE METROPOLITAN MASS TRANSPORTATION OPERATING  ASSIST
 ANCE ACCOUNT ESTABLISHED PURSUANT TO SUBDIVISION SEVEN OF SECTION EIGHT
 Y-EIGHT-A OF THE STATE FINANCE LAW.
 
       S. 5596--A                          4
 

S  7. Paragraph 1-a of subdivision (d) of section 1102 of the tax law,
 as added by section six of this act, is amended to read as follows:

 (1-a) Except as otherwise provided, [one cent] TWO CENTS per gallon of
 the  taxes  collected  or  received  in  any  month with respect to such
 prepayment per gallon tax imposed by this  section  shall  be  deposited
 proportionately  as  follows:  (i)  for motor fuel, eighty-one and five
 tenths percent in  the  special  obligations  and  reserve  and  payment
 account  of  the  dedicated  highway  and  bridge trust fund established
 pursuant to section eighty-nine-b of the state finance law and  eighteen
 and  five-tenths percent in the metropolitan mass transportation operat
 ing assistance account established  pursuant  to  subdivision  seven  of
 section  eighty-eight-a  of the state finance law; (ii) for diesel motor
 fuel, sixty-three percent in the special  obligations  and  reserve  and
 payment  account  of  the dedicated highway and bridge trust fund estab
 lished pursuant to section eighty-nine-b  of the state finance  law  and
 thirty-seven  percent  in the metropolitan mass transportation operating
 assistance account established pursuant to subdivision seven of  section
 eighty-eight-a of the state finance law.
 

S  8. Paragraph 1-a of subdivision (d) of section 1102 of the tax law,
 as amended by section seven of this act, is amended to read as follows:

 (1-a) Except as otherwise provided, [two cents] FOUR CENTS per  gallon
 of  the  taxes  collected  or received in any month with respect to such
 prepayment per gallon tax imposed by this  section  shall  be  deposited
 proportionately  as  follows:  (i)  for motor fuel, eighty-one and five
 tenths percent in  the  special  obligations  and  reserve  and  payment
 account  of  the  dedicated  highway  and  bridge trust fund established
 pursuant to section eighty-nine-b of the state finance law and  eighteen
 and  five-tenths percent in the metropolitan mass transportation operat
 ing assistance account established  pursuant  to  subdivision  seven  of
 section  eighty-eight-a  of the state finance law; (ii) for diesel motor
 fuel, sixty-three percent in the special  obligations  and  reserve  and
 payment  account  of  the dedicated highway and bridge trust fund estab
 lished pursuant to section eighty-nine-b  of the state finance  law  and
 thirty-seven  percent  in the metropolitan mass transportation operating
 assistance account established pursuant to subdivision seven of  section
 eighty-eight-a of the state finance law.
 

S  9.  Paragraph  (a)  of  subdivision  7 of section 88-a of the state
 finance law, as added by chapter 481 of the laws of 1981, is amended  to
 read as follows:

 (a)   The   "metropolitan  mass  transportation  operating  assistance
 account" shall consist of the revenues derived from the  taxes  for  the
 metropolitan  transportation  district imposed by section eleven hundred
 nine of the tax law and that proportion of the receipts received  pursu
 ant  to  the  tax  imposed by article nine-a of such law as specified in
 section one hundred seventy-one-a of such law, and  that  proportion  of
 the  receipts  received  pursuant  to the tax imposed by article nine of
 such law as specified in section two hundred five of such law,  and  the
 receipts  required to be deposited pursuant to the provisions of section
 one hundred eighty-two-a  OF  SUCH  LAW,  AND  THAT  PROPORTION  OF  THE
 RECEIPTS RECEIVED PURSUANT TO THE TAX IMPOSED BY ARTICLE TWENTY-EIGHT OF
 SUCH LAW AS SPECIFIED IN SECTION ELEVEN HUNDRED TWO OF SUCH LAW, and all
 other  moneys  credited  or  transferred  thereto from any other fund or
 source pursuant to law.
 

S 10. Paragraph (a) of subdivision 3 of  section  89-b  of  the  state
 finance law, as amended by section 2 of chapter 165 of the laws of 2008,
 is amended to read as follows:

 
       S. 5596--A                          5
 (a)  The  special obligation reserve and payment account shall consist
 (i) of all moneys required to be deposited in the dedicated highway  and
 bridge  trust  fund  pursuant  to the provisions of sections two hundred
 five, two hundred  eighty-nine-e,  three  hundred  one-j,  five  hundred
 fifteen,  ELEVEN  HUNDRED  TWO and eleven hundred sixty-seven of the tax
 law, section four hundred one  of  the  vehicle  and  traffic  law,  and
 section  thirty-one of chapter fifty-six of the laws of nineteen hundred
 ninety-three, (ii) all fees, fines or penalties collected by the commis
 sioner of transportation pursuant to section fifty-two and  subdivisions
 five,  eight  and  twelve  of  section  eighty-eight of the highway law,
 subdivision fifteen of section three hundred eighty-five of the  vehicle
 and  traffic law, section two of the chapter of the laws of two thousand
 three that amended this paragraph,  subdivision  (d)  of  section  three
 hundred  four-a, paragraph one of subdivision (a) and subdivision (d) of
 section three hundred five, subdivision six-a of  section  four  hundred
 fifteen and subdivision (g) of section twenty-one hundred twenty-five of
 the  vehicle and traffic law, section fifteen of this chapter, excepting
 moneys deposited with the state  on  account  of  betterments  performed
 pursuant  to  subdivision  twenty-seven  or  subdivision  thirty-five of
 section ten of the highway  law,  (iii)  any  moneys  collected  by  the
 department  of  transportation  for services provided pursuant to agree
 ments entered into in  accordance  with  section  ninety-nine-r  of  the
 general  municipal  law, and (iv) any other moneys collected therefor or
 credited or transferred thereto from any other fund, account or source.
 

S 11. Paragraph (a) of subdivision 3 of  section  89-b  of  the  state
 finance law, as amended by section 3 of chapter 165 of the laws of 2008,
 is amended to read as follows:

 (a)  The  special obligation reserve and payment account shall consist
 (i) of all moneys required to be deposited in the dedicated highway  and
 bridge  trust  fund  pursuant  to the provisions of sections two hundred
 eighty-nine-e, three hundred one-j, five hundred fifteen, ELEVEN HUNDRED
 TWO and eleven hundred sixty-seven of the tax law, section four  hundred
 one  of  the  vehicle and traffic law, and section thirty-one of chapter
 fifty-six of the laws of nineteen hundred ninety-three, (ii)  all  fees,
 fines  or  penalties  collected  by  the  commissioner of transportation
 pursuant to section fifty-two and subdivisions five, eight and twelve of
 section eighty-eight of the highway law, subdivision fifteen of  section
 three  hundred  eighty-five  of  the  vehicle  and  traffic law, section
 fifteen of this chapter, excepting moneys deposited with  the  state  on
 account of betterments performed pursuant to subdivision twenty-seven or
 subdivision  thirty-five  of  section  ten of the highway law, (iii) any
 moneys collected  by  the  department  of  transportation  for  services
 provided  pursuant to agreements entered into in accordance with section
 ninety-nine-r of the general municipal law, and (iv)  any  other  moneys
 collected  therefor  or  credited  or transferred thereto from any other
 fund, account or source.
 

S 12. A maximum of one hundred million dollars per annum  from  reven
 ues, fees or credits gathered from resources generated within the metro
 politan  commuter  transportation  district  by  assumed authority under
 sections 5 and 66 of the public service law shall be  dedicated  to  the
 metropolitan  transportation  authority in order to support energy effi
 cient public transportation in the state fiscal year commencing April 1,
 2012 and in each state fiscal year thereafter.
 

S 13. This act shall take effect immediately; provided, however,  that
 the  provisions  of  sections one, six, nine, ten and eleven of this act
 shall take effect January 1,  2012;  provided,  further,  that  sections
 
       S. 5596--A                          6
 three  and  seven  of  this  act  shall  take effect on January 1, 2013;
 provided, further, that section eight of  this  act  shall  take  effect
 January 1, 2014; provided, further, that the amendments to paragraph (a)
 of  subdivision  3  of  section  89-b  of the state finance law, made by
 section ten of this act, shall be subject to the expiration  and  rever
 sion  of  such paragraph pursuant to section 13 of part U1 of chapter 62
 of the laws of 2003, as amended, when upon such date the  provisions  of
 section eleven of this act shall take effect.

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