What's happening
This bill creates a fund allowing individuals and businesses to donate for financial relief to non-profits impacted by federal funding lapses.
Why it matters
Creates a new way for individuals and businesses to directly support non-profits. during federal government shutdowns, enabling taxpayers to voluntarily contribute via their state tax returns. This could help maintain essential community services when federal dollars stop flowing.
Triggers matching state appropriations in years when federal funding lapses occur. , meaning the state will match privately donated funds for non-profits hit hardest by federal appropriations lapses, potentially doubling the impact of donations and providing a predictable relief mechanism.
Directs the Department of Labor to oversee the fund and determine eligibility. , ensuring that only non-profits directly affected by the loss of federal funds during shutdowns receive aid. This targets assistance to organizations most at risk of disruption, helping protect jobs and services.
Mandates annual public reporting on fund usage and recipients. , increasing transparency and accountability. This could build public trust in the program, inform future policy decisions, and allow donors to see the impact of their contributions.
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Who cares
Nonprofits losing federal funding during shutdowns
The bill would provide financial relief to qualifying nonprofits denied federal funding because of an appropriations lapse beginning on or after December 22, 2018.
Individual and business taxpayers
They could contribute whole-dollar amounts through state tax returns, without reducing their state tax liability unless otherwise permitted by law.
New York State Department of Labor
The department would administer the fund, set eligibility and award procedures, and publicly report recipients, award amounts and fund finances each year.
State comptroller and Department of Taxation and Finance
They would share custody of the fund with the labor commissioner, with Taxation and Finance collecting tax-return contributions and the comptroller certifying deposits and auditing payments.
Headline styles
Aid Fund for Nonprofits
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to budget and revenue
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7768
IN SENATE
February 18, 2020
Introduced by Sen. BENJAMIN -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law and the state finance law, in relation to the non-profit organization financial relief fund
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The tax law is amended by adding a new section 630-h to read as follows:
§ 630-h. Gift for certain non-profit organizations. Effective for any tax year commencing on or after January first, two thousand twenty, an individual and/or business in any taxable year may elect to contribute to the non-profit organization financial relief fund. Such contribution shall be in any whole dollar amount and shall not reduce the amount of state tax owed by such individual or business unless otherwise permitted under applicable law. The commissioner shall include space on the personal income and business income tax returns to enable a taxpayer to make such contribution. Notwithstanding any other provision of law, all revenues collected pursuant to this section shall be credited to the non-profit organization financial relief fund and used only for the purposes enumerated in section ninety-nine-hh of the state finance law.
§ 2. The state finance law is amended by adding a new section 99-hh to read as follows:
§ 99-hh. Non-profit organization financial relief fund. 1. There is hereby established in joint custody of the state comptroller, the commissioner of taxation and finance, and the commissioner of labor a special fund to be known as the "non-profit organization financial relief fund".
2. The non-profit organization financial relief fund shall consist of revenues received by the department of taxation and finance, pursuant to the provisions of section six hundred thirty-h of the tax law, and all other moneys collected therefor, or moneys appropriated, credited or transferred thereto from any other fund or source pursuant to law. For each state fiscal year in which there is a covered lapse in appropriations, as defined in paragraph (b) of subdivision three of this
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10807-03-0
S. 7768 2
section, there shall be appropriated to the fund by the state, an amount equal to the amounts of moneys collected and deposited into the fund pursuant to section six hundred thirty-h of the tax law, and the amounts of moneys received and deposited into the fund from grants, gifts and bequests during the preceding calendar year, as certified by the comptroller. For all other state fiscal years, the state shall have the right to appropriate additional moneys to the extent reasonably necessary to carry out the purposes of the fund. Nothing in this section shall prevent the state from soliciting and receiving grants, gifts or bequests for the purposes of the fund as set forth in this section and depositing them into the fund in accordance with applicable law.
3. The department of labor shall administer the fund, and shall develop and implement rules and procedures, including rules relating to eligibility for and disbursement of awards, for providing financial relief to a qualified non-profit organization from the fund. For purposes of this section, the following terms shall have the following meanings: (a) a "qualified non-profit organization" shall mean a nonprofit organization, as defined in subdivision one of section five hundred sixty-three of the labor law, that does not receive funding from the United States government as a result of a covered lapse in appropriations, and (b) a "covered lapse in appropriations" shall mean any lapse in appropriations by the United States government that begins on or after December twenty-second, two thousand eighteen.
4. On or before the first day of February each year, the department of labor shall provide a written report to the governor, the temporary president of the senate, the speaker of the assembly, the chair of the senate committee on labor, and the chair of the assembly committee on labor. Such report shall be made available to the public on the department of labor's website. Such report shall include how the moneys of the fund were utilized during the preceding calendar year and shall include:
(a) the amount of money dispursed from the fund;
(b) the recipients of awards from the fund;
(c) the amount awarded to each recipient;
(d) the purposes for which such awards were granted; and
(e) a summary financial plan for such moneys which shall include estimates of all receipts and all disbursements for the current and succeeding fiscal years, along with the actual results from the prior fiscal year.
5. On or before the first day of February of each calendar year, the comptroller shall certify to the governor, the temporary president of the senate, the speaker of the assembly, the chair of the senate committee on labor, and the chair of the assembly committee on labor, the amount of money deposited in the non-profit organization financial relief fund during the preceding calendar year as a result of the revenue derived pursuant to section six hundred thirty-h of the tax law, and from all grants, gifts and bequests.
6. Moneys of the fund shall be expended only for purposes of compensating a qualified non-profit organization as determined by the department of labor.
7. Moneys shall be paid out of the fund on the audit and warrant of the comptroller on vouchers approved and certified by the department of labor. Any interest received by the comptroller on deposit in the nonprofit organization financial relief fund shall be retained in and become part of such fund.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law and the state finance law, in relation to the non-profit organization financial relief fund
Purpose
The creation of an Emergency Financial Relief Fund to support federal employees or contractors of the federal government who are residents of the state, required to work without compensation or placed on unpaid leave resulting from a covered lapse in appropriations. This includes non-profits licensed to do business in this state, whose contract includes providing services to the federal government that cannot be offered as a result of covered lapse in appropriations. This bill gives the Department of Taxation and Finance, in union with the Department of Labor, jurisdiction to provide necessary financial relief to federal employees and federal contractors.
Summary of provisions
Section one amends tax law by adding section 630-g to state any individ- ual and/or business may elect to contribute to the emergency financial relief fund by creation of a gift fund establishing monies paid to federal contractors based in New York State. This does not affect the amount of state tax owed by any individual or business, and all revenues collected for the fund shall only be used for purposes established in section 89-j of state finance law. Section two amends state finance law by adding section 89-j, enumerating that the emergency relief fund is in joint custody of the State comptroller, commissioner of tax and finance, as well as the commissioner of labor. Subdivision one states revenues for the fund are received by the department of taxation and finance, any other monies appropriated to the fund from other sources are subject to pursuant law. Within each state fiscal year, the state can appropriate an equal amount of money to the fund pursuant to section 633-g of tax law, independent of all other contributions that are credited, trans- ferred, or appropriated to the fund from grants, gifts, or bequests during the preceding calendar year, as certified by the comptroller. The state is within its rights to solicit, receive grants, gifts, and bequests for the purposes of the fund in accordance with applicable law. Subdivision three establishes that the fund is administered by New York State department of labor, which shall implement procedures and rules, including those relating to eligibility for and disbursement of awards to qualified individuals.
Subdivision four outlines the details to be included in the written report submitted by the New York State department of labor on or before the first day of February each year. The report is submitted to the governor, temporary president of the Senate, Speaker of the Assembly, the chair of the senate committee on labor, and eventually becomes available to the public on the New York State department of labor website. Subdivision five states that the comptroller certifies on or before the first of February of each calendar year that all monies deposited into the fund from the preceding calendar year are pursuant to section 630-g of tax law. Subdivision six states monies of the fund are only to be expended for the purposes of compensating a qualified indi- vidual determined by New York state department of labor. Subdivision seven states that the New York state department of labor certifies and approves vouchers issued by the comptroller for monies paid out of the fund, and any interest received on deposits into the fund shall be retained to become part of the fund.
Justification
LEGISLATIVE HISTORY: New Bill
Fiscal implications
TBD
Local fiscal implications
EFFECTIVE DATE: Effective immediately as of January 1, 2020
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.