S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 8285                                                 A. 11515

                      S E N A T E - A S S E M B L Y

                              June 21, 2010
                               ___________

IN  SENATE  --  Introduced  by  COMMITTEE ON RULES -- (at request of the
  Governor) -- read twice and ordered printed, and when  printed  to  be
  committed to the Committee on Finance

IN  ASSEMBLY  --  Introduced by COMMITTEE ON RULES -- (at request of the
  Governor) -- read once and referred to the Committee on Ways and Means

AN ACT to amend chapter 405 of the laws of 1999 amending the real  prop-
  erty  tax  law  relating to improving the administration of the school
  tax relief (STAR) program, in relation to the lottery  game  of  Quick
  Draw  (Part  A); to amend chapter 349 of the laws of 1982 amending the
  multiple dwelling law relating to  legalization  of  interim  multiple
  dwellings in cities over one million, in relation to the effectiveness
  thereof;  to  amend  the  multiple  dwelling law, in relation to owner
  obligations (Part B); to amend the racing,  pari-mutuel  wagering  and
  breeding  law,  in relation to licenses for simulcast facilities, sums
  relating to track simulcast, simulcast  of  out-of-state  thoroughbred
  races,  simulcasting  of  races run by out-of-state harness tracks and
  distributions of wagers; to amend chapter 281  of  the  laws  of  1994
  amending  the  racing, pari-mutuel wagering and breeding law and other
  laws relating to simulcasting and to amend chapter 346 of the laws  of
  1990  amending  the  racing, pari-mutuel wagering and breeding law and
  other laws relating to simulcasting  and  the  imposition  of  certain
  taxes,  in  relation  to  extending certain provisions thereof; and to
  amend the racing, pari-mutuel wagering and breeding law,  in  relation
  to extending certain provisions thereof (Part C); and to amend the tax
  law,  in relation to the cigarette tax rate and sales of cigarettes to
  Indian nations or tribes, and  in  relation  to  the  tax  on  tobacco
  products, snuff and little cigars; to amend the administrative code of
  the  city  of New York and chapter 235 of the laws of 1952 relating to
  enabling any city of the state having a population 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  legisla-
  ture  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 the definition of cigarettes (Part D)

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12284-03-0
              

S. 8285                             2                           A. 11515

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

  Section  1.  This  act enacts into law major components of legislation
which are necessary to implement the state fiscal plan for the 2010-2011
state fiscal year. Each component is  wholly  contained  within  a  Part
identified  as Parts A through D. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes reference to  a  section
"of  this  act", when used in connection with that particular component,
shall be deemed to mean and refer to the corresponding  section  of  the
Part  in  which  it  is  found. Section three of this act sets forth the
general effective date of this act.

                                 PART A

  Section 1. Section 1 of part J of chapter 405 of  the  laws  of  1999,
amending  the  real  property tax law relating to improving the adminis-
tration of the school tax relief (STAR) program, as amended by section 1
of part I of chapter 111 of the laws of 2010,  is  amended  to  read  as
follows:
  Section  1. Notwithstanding the provisions of article 5 of the general
construction law, the provisions of the  tax  law  amended  by  sections
94-a,  94-d and 94-g of chapter 2 of the laws of 1995 are hereby revived
and shall continue in full force and effect as they existed on March 31,
1999 through [June 25] JULY 2, 2010, when  upon  such  date  they  shall
expire  and  be  repealed.  Sections 1, 2, 3, 4, and 5, and such part of
section 10 of chapter 336 of the laws of 1999 as  relates  to  providing
for  the effectiveness of such sections 1, 2, 3, 4 and 5 shall be nulli-
fied in effect on the effective date of this section,  except  that  the
amendments  made  to:  paragraph (2) of subdivision a of section 1612 of
the tax law by such section 1; and subdivision b of section 1612 of  the
tax  law by such section 2; and the repeal of section 152 of chapter 166
of the laws of 1991 made by such section 5 shall continue to  remain  in
effect.
  S 2. This act shall take effect immediately.

                                 PART B

  Section 1.  Section 3 of chapter 349 of the laws of 1982, amending the
multiple  dwelling  law relating to the legalization of interim multiple
dwellings in cities over one million, as amended by section 1 of part  J
of chapter 111 of the laws of 2010, is amended to read as follows:
  S  3. Effective date and termination. This act shall take effect imme-
diately. The provisions of this act  and  all  regulations,  orders  and
requirements thereunder shall terminate at the close of the calendar day
[June 25] JULY 2, 2010.
  S  2.  Paragraph  (v)  of subdivision 1 of section 284 of the multiple
dwelling law, as amended by section 2 of part J of chapter  111  of  the
laws of 2010, is amended to read as follows:
  (v) An owner of an interim multiple dwelling who has not complied with
the  requirements of paragraph (i), (ii), (iii) or (iv) of this subdivi-
sion by the effective date of this  paragraph  as  provided  in  chapter
eighty-five of the laws of two thousand two shall hereafter be deemed in
compliance  with  this  subdivision  provided  that  such owner filed an

S. 8285                             3                           A. 11515

alteration application by September first, nineteen hundred ninety-nine,
took all reasonable and necessary action to obtain  an  approved  alter-
ation  permit by March first, two thousand, achieves compliance with the
standards  of safety and fire protection set forth in article seven-B of
this chapter for the residential portions of the building by June first,
two thousand ten or within twelve  months  from  obtaining  an  approved
alteration  permit  whichever  is  later,  and  takes all reasonable and
necessary action to obtain a certificate  of  occupancy  as  a  class  A
multiple dwelling for the residential portions of the building or struc-
ture  by [June twenty-fifth] JULY SECOND, two thousand ten or within one
month from achieving compliance with the  aforementioned  standards  for
the residential portions of the building, whichever is later.
  S  3.  This  act shall take effect immediately; provided however, that
the amendments to paragraph (v) of subdivision 1 of section 284  of  the
multiple  dwelling  law made by section two of this act shall not affect
the repeal of such section  and  shall  be  deemed  repealed  therewith,
pursuant to section 3 of chapter 349 of the laws of 1982, as amended.

                                 PART C

  Section  1.  Paragraph  (a)  of  subdivision  1 of section 1003 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  1
of  part  L-1  of  chapter 57 of the laws of 2009, is amended to read as
follows:
  (a) Any  racing  association  or  corporation  or  regional  off-track
betting  corporation,  authorized  to conduct pari-mutuel wagering under
this chapter, desiring to display the simulcast of horse races on  which
pari-mutuel  betting shall be permitted in the manner and subject to the
conditions provided for in this article may apply to  the  board  for  a
license so to do. Applications for licenses shall be in such form as may
be  prescribed  by the board and shall contain such information or other
material or evidence as the board  may  require.  No  license  shall  be
issued  by the board authorizing the simulcast transmission of thorough-
bred races from a track located in Suffolk  county.  The  fee  for  such
licenses  shall  be five hundred dollars per simulcast facility per year
payable by the licensee to the board for deposit into the general  fund.
Except  as  provided herein, the board shall not approve any application
to conduct simulcasting into individual or group  residences,  homes  or
other areas for the purposes of or in connection with pari-mutuel wager-
ing.  The board may approve simulcasting into residences, homes or other
areas to be conducted jointly by one or more regional off-track  betting
corporations and one or more of the following: a franchised corporation,
thoroughbred racing corporation or a harness racing corporation or asso-
ciation;  provided  (i) the simulcasting consists only of those races on
which pari-mutuel betting is authorized by this chapter at one  or  more
simulcast  facilities  for  each  of  the  contracting off-track betting
corporations which shall include wagers made in accordance with  section
one thousand fifteen, one thousand sixteen and one thousand seventeen of
this  article;  provided  further  that the contract provisions or other
simulcast arrangements for such simulcast  facility  shall  be  no  less
favorable than those in effect on January first, two thousand five; (ii)
that  each  off-track  betting  corporation having within its geographic
boundaries such residences, homes or other areas technically capable  of
receiving  the  simulcast signal shall be a contracting party; (iii) the
distribution of revenues shall be subject to  contractual  agreement  of
the  parties  except that statutory payments to non-contracting parties,

S. 8285                             4                           A. 11515

if any, may not be reduced; provided, however, that  nothing  herein  to
the  contrary  shall  prevent  a  track  from televising its races on an
irregular basis primarily for promotional or marketing purposes as found
by  the board. For purposes of this paragraph, the provisions of section
one thousand thirteen of this article shall  not  apply.  Any  agreement
authorizing  an  in-home simulcasting experiment commencing prior to May
fifteenth, nineteen hundred ninety-five, may,  and  all  its  terms,  be
extended  until  June  thirtieth,  two  thousand [ten] ELEVEN; provided,
however, that any party to such agreement may elect  to  terminate  such
agreement  upon  conveying  written  notice to all other parties of such
agreement at least forty-five days prior to the effective  date  of  the
termination,  via  registered  mail. Any party to an agreement receiving
such notice of an intent to terminate, may request the board to  mediate
between  the parties new terms and conditions in a replacement agreement
between the parties as will permit continuation of an in-home experiment
until June thirtieth, two thousand [ten] ELEVEN;  and  (iv)  no  in-home
simulcasting  in  the  thoroughbred special betting district shall occur
without the approval of the regional thoroughbred track.
  S 2. Subparagraph (iii) of paragraph d of  subdivision  3  of  section
1007 of the racing, pari-mutuel wagering and breeding law, as amended by
section  2  of part L-1 of chapter 57 of the laws of 2009, is amended to
read as follows:
  (iii) Of the sums retained by a receiving track located in Westchester
county on races received from a franchised corporation, for  the  period
commencing January first, two thousand eight and continuing through June
thirtieth,  two  thousand  [ten] ELEVEN, the amount used exclusively for
purses to be awarded at races conducted by such receiving track shall be
computed as follows: of the sums so retained, two and  one-half  percent
of  the  total pools. Such amount shall be increased or decreased in the
amount of fifty percent of the difference in  total  commissions  deter-
mined  by  comparing  the total commissions available after July twenty-
first, nineteen hundred ninety-five to the total commissions that  would
have  been  available to such track prior to July twenty-first, nineteen
hundred ninety-five.
  S 3. The opening paragraph of subdivision 1 of  section  1014  of  the
racing,  pari-mutuel  wagering and breeding law, as amended by section 3
of part L-1 of chapter 57 of the laws of 2009, is  amended  to  read  as
follows:
  The  provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country  on
any day during which a franchised corporation is conducting a race meet-
ing  in  Saratoga  county  at Saratoga thoroughbred racetrack until June
thirtieth, two thousand [ten] ELEVEN and on any day regardless of wheth-
er or not a franchised corporation is conducting a race meeting in Sara-
toga county at Saratoga thoroughbred racetrack after June thirtieth, two
thousand [ten] ELEVEN. On any day on which a franchised corporation  has
not  scheduled  a  racing  program but a thoroughbred racing corporation
located within the state is conducting racing, every  off-track  betting
corporation  branch  office  and every simulcasting facility licensed in
accordance with section one thousand seven (that  have  entered  into  a
written  agreement with such facility's representative horsemen's organ-
ization, as approved by the board), one thousand eight, or one  thousand
nine  of  this  article shall be authorized to accept wagers and display
the live simulcast signal from thoroughbred tracks  located  in  another
state or foreign country subject to the following provisions:

S. 8285                             5                           A. 11515

  S 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
and  breeding  law, as amended by section 4 of part L-1 of chapter 57 of
the laws of 2009, is amended to read as follows:
  1.  The  provisions  of  this section shall govern the simulcasting of
races conducted at harness tracks located in another  state  or  country
during  the period July first, nineteen hundred ninety-four through June
thirtieth, two thousand [ten] ELEVEN.  This section shall supersede  all
inconsistent provisions of this chapter.
  S  5.  The  opening  paragraph of subdivision 1 of section 1016 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  5
of  part  L-1  of  chapter 57 of the laws of 2009, is amended to read as
follows:
  The provisions of this section shall govern the simulcasting of  races
conducted  at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is not conducting  a  race
meeting in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth,  two  thousand [ten] ELEVEN.   Every off-track betting corpo-
ration branch office and every simulcasting facility licensed in accord-
ance with section one thousand seven that have entered  into  a  written
agreement with such facility's representative horsemen's organization as
approved  by  the board, one thousand eight or one thousand nine of this
article shall be authorized to accept wagers and display the live  full-
card  simulcast signal of thoroughbred tracks (which may include quarter
horse or mixed meetings provided that all such wagering  on  such  races
shall be construed to be thoroughbred races) located in another state or
foreign country, subject to the following provisions; provided, however,
no  such written agreement shall be required of a franchised corporation
licensed in accordance with section one thousand seven of this article:
  S 6. The opening paragraph of section 1018 of the racing,  pari-mutuel
wagering  and breeding law, as amended by section 6 of part L-1 of chap-
ter 57 of the laws of 2009, is amended to read as follows:
  Notwithstanding any other provision of this chapter,  for  the  period
July  twenty-fifth, two thousand one through September eighth, two thou-
sand [nine] TEN, when a franchised  corporation  is  conducting  a  race
meeting  within  the  state  at  Saratoga  Race  Course, every off-track
betting  corporation  branch  office  and  every  simulcasting  facility
licensed in accordance with section one thousand seven (that has entered
into  a written agreement with such facility's representative horsemen's
organization as approved by the board), one thousand eight or one  thou-
sand  nine  of  this  article  shall  be authorized to accept wagers and
display the live simulcast signal from thoroughbred  tracks  located  in
another  state, provided that such facility shall accept wagers on races
run at all in-state thoroughbred  tracks  which  are  conducting  racing
programs subject to the following provisions; provided, however, no such
written agreement shall be required of a franchised corporation licensed
in accordance with section one thousand seven of this article.
  S  7.  Section  32  of  chapter  281 of the laws of 1994, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting, as amended by section 7 of part L-1 of chapter 57  of  the
laws of 2009, is amended to read as follows:
  S  32.  This act shall take effect immediately and the pari-mutuel tax
reductions in section six  of  this  act  shall  expire  and  be  deemed
repealed  on  July  1,  [2010]  2011;  provided,  however,  that nothing
contained herein shall be deemed to affect the  application,  qualifica-
tion,  expiration,  or  repeal  of  any  provision of law amended by any
section of this act, and such provisions shall be applied  or  qualified

S. 8285                             6                           A. 11515

or  shall  expire  or be deemed repealed in the same manner, to the same
extent and on the same date as the case may be as otherwise provided  by
law;  provided  further, however, that sections twenty-three and twenty-
five of this act shall remain in full force and effect only until May 1,
1997 and at such time shall be deemed to be repealed.
  S  8.  Section  54  of  chapter  346 of the laws of 1990, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting and the imposition of certain taxes, as amended by  section
8  of  part L-1 of chapter 57 of the laws of 2009, is amended to read as
follows:
  S 54. This act  shall  take  effect  immediately;  provided,  however,
sections  three  through twelve of this act shall take effect on January
1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
ing law, as added by section thirty-eight of this act, shall expire  and
be  deemed repealed on July 1, [2010] 2011; and section eighteen of this
act shall take effect on July 1, 2008 and sections fifty-one and  fifty-
two  of this act shall take effect as of the same date as chapter 772 of
the laws of 1989 took effect.
  S 9. Paragraph (a) of subdivision 1 of  section  238  of  the  racing,
pari-mutuel  wagering  and breeding law, as amended by section 9 of part
L-1 of chapter 57 of the laws of 2009, is amended to read as follows:
  (a) The  franchised  corporation  authorized  under  this  chapter  to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute  all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets be presented for  payment
before  April  first  of  the year following the year of their purchase,
less an amount which shall be established and  retained  by  such  fran-
chised  corporation  of  between  sixteen to seventeen per centum of the
total deposits in pools resulting from on-track regular bets, and  eigh-
teen  and  one-half  to  twenty-one  per centum of the total deposits in
pools resulting from on-track multiple bets and twenty-six per centum of
the total deposits in pools resulting  from  on-track  exotic  bets  and
sixteen  to thirty-six per centum of the total deposits in pools result-
ing from on-track super exotic bets, and twenty-six  to  thirty-six  per
centum  when  such  on-track  super  exotic  betting  pools  are carried
forward, plus the breaks.  The  retention  rate  to  be  established  is
subject  to  the  prior  approval of the racing and wagering board. Such
rate may not be changed more than once per calendar quarter to be effec-
tive on the first day of  the  calendar  quarter.    "Exotic  bets"  and
"multiple  bets"  shall  have  the  meanings  set  forth in section five
hundred nineteen of this chapter. "Super exotic  bets"  shall  have  the
meaning  set  forth  in  section three hundred one of this chapter.  For
purposes of this section, a "pick six bet" shall mean a  single  bet  or
wager on the outcomes of six races. The breaks are hereby defined as the
odd  cents over any multiple of five for payoffs greater than one dollar
five cents but less than five dollars, over  any  multiple  of  ten  for
payoffs  greater  than  five  dollars but less than twenty-five dollars,
over any multiple of twenty-five for payoffs  greater  than  twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty  for  payoffs over two hundred fifty dollars. Out of the amount so
retained there shall be paid  by  such  franchised  corporation  to  the
commissioner  of  taxation and finance, as a reasonable tax by the state
for the privilege of conducting pari-mutuel betting on the races run  at
the  race  meetings  held  by such franchised corporation, the following
percentages of the total pool for regular and  multiple  bets  five  per
centum  of regular bets and four per centum of multiple bets plus twenty

S. 8285                             7                           A. 11515

per centum of the breaks; for  exotic  wagers  seven  and  one-half  per
centum  plus  twenty per centum of the breaks, and for super exotic bets
seven and one-half per centum plus fifty per centum of the  breaks.  For
the  period  June  first, nineteen hundred ninety-five through September
ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
three per centum and such tax on multiple wagers shall be two  and  one-
half  per  centum,  plus twenty per centum of the breaks. For the period
September tenth, nineteen  hundred  ninety-nine  through  March  thirty-
first,  two  thousand  one, such tax on all wagers shall be two and six-
tenths per centum and for the  period  April  first,  two  thousand  one
through  December  thirty-first,  two thousand [ten] ELEVEN, such tax on
all wagers shall be one and six-tenths per centum, plus,  in  each  such
period,  twenty  per centum of the breaks. Payment to the New York state
thoroughbred breeding and development fund  by  such  franchised  corpo-
ration shall be one-half of one per centum of total daily on-track pari-
mutuel  pools resulting from regular, multiple and exotic bets and three
per centum of super exotic bets provided, however, that for  the  period
September  tenth,  nineteen  hundred  ninety-nine  through March thirty-
first, two thousand one, such payment shall be  six-tenths  of  one  per
centum  of  regular,  multiple and exotic pools and for the period April
first, two thousand one  through  December  thirty-first,  two  thousand
[ten]  ELEVEN,  such  payment shall be seven-tenths of one per centum of
such pools.
  S 10. Paragraph (a) of subdivision 1 of section  238  of  the  racing,
pari-mutuel  wagering and breeding law, as amended by section 10 of part
L-1 of chapter 57 of the laws of 2009, is amended to read as follows:
  (a) The  franchised  corporation  authorized  under  this  chapter  to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute  all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets be presented for  payment
before  April  first  of  the year following the year of their purchase,
less an amount which shall be established and  retained  by  such  fran-
chised  corporation  of  between  twelve  to seventeen per centum of the
total deposits in pools resulting from on-track regular bets, and  four-
teen  to  twenty-one per centum of the total deposits in pools resulting
from on-track multiple bets and fifteen to twenty-five per centum of the
total deposits in pools resulting from on-track exotic bets and  fifteen
to  thirty-six  per centum of the total deposits in pools resulting from
on-track super exotic bets, plus the breaks. The retention  rate  to  be
established  is subject to the prior approval of the racing and wagering
board. Such rate may not be changed more than once per calendar  quarter
to  be effective on the first day of the calendar quarter. "Exotic bets"
and "multiple bets" shall have the meanings set forth  in  section  five
hundred  nineteen  of  this  chapter. "Super exotic bets" shall have the
meaning set forth in section three hundred  one  of  this  chapter.  For
purposes  of  this  section, a "pick six bet" shall mean a single bet or
wager on the outcomes of six races. The breaks are hereby defined as the
odd cents over any multiple of five for payoffs greater than one  dollar
five  cents  but  less  than  five dollars, over any multiple of ten for
payoffs greater than five dollars but  less  than  twenty-five  dollars,
over  any  multiple  of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty for payoffs over two hundred fifty dollars. Out of the  amount  so
retained  there  shall  be  paid  by  such franchised corporation to the
commissioner of taxation and finance, as a reasonable tax by  the  state
for  the privilege of conducting pari-mutuel betting on the races run at

S. 8285                             8                           A. 11515

the race meetings held by such  franchised  corporation,  the  following
percentages  of  the  total  pool for regular and multiple bets five per
centum of regular bets and four per centum of multiple bets plus  twenty
per  centum  of  the  breaks;  for  exotic wagers seven and one-half per
centum plus twenty per centum of the breaks, and for super  exotic  bets
seven  and  one-half per centum plus fifty per centum of the breaks. For
the period June first, nineteen hundred  ninety-five  through  September
ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
three  per  centum and such tax on multiple wagers shall be two and one-
half per centum, plus twenty per centum of the breaks.  For  the  period
September  tenth,  nineteen  hundred  ninety-nine  through March thirty-
first, two thousand one, such tax on all wagers shall be  two  and  six-
tenths  per  centum  and  for  the  period April first, two thousand one
through December thirty-first, two thousand [ten] ELEVEN,  such  tax  on
all  wagers  shall  be one and six-tenths per centum, plus, in each such
period, twenty per centum of the breaks. Payment to the New  York  state
thoroughbred  breeding  and  development  fund by such franchised corpo-
ration shall be one-half of one per centum of total daily on-track pari-
mutuel pools resulting from regular, multiple and exotic bets and  three
per  centum  of super exotic bets provided, however, that for the period
September tenth, nineteen  hundred  ninety-nine  through  March  thirty-
first,  two  thousand  one,  such payment shall be six-tenths of one per
centum of regular, multiple and exotic pools and for  the  period  April
first,  two  thousand  one  through  December thirty-first, two thousand
[ten] ELEVEN, such payment shall be seven-tenths of one  per  centum  of
such pools.
  S  11. Subdivision 5 of section 1012 of the racing, pari-mutuel wager-
ing and breeding law, as amended by section 11 of part L-1 of chapter 57
of the laws of 2009, is amended to read as follows:
  5. The provisions of this section shall expire and be  of  no  further
force and effect after June thirtieth, two thousand [ten] ELEVEN.
  S 12. This act shall take effect immediately, provided that the amend-
ments  to  paragraph  (a) of subdivision 1 of section 238 of the racing,
pari-mutuel wagering and breeding law made by section nine of  this  act
shall  be  subject  to  the  expiration  and reversion of such paragraph
pursuant to section 32 of chapter 115 of the laws of 2008,  as  amended,
when upon such date the provisions of section ten of this act shall take
effect.

                                 PART D

  Section  1. Subdivision 1 of section 471 of the tax law, as amended by
section 1 of part RR-1 of chapter 57 of the laws of 2008, is amended  to
read as follows:
  1.  There  is hereby imposed and shall be paid a tax on all cigarettes
possessed in the state by any person for sale, except that no tax  shall
be  imposed  on cigarettes sold under such circumstances that this state
is without power to impose such tax, INCLUDING SALES TO QUALIFIED  INDI-
ANS FOR THEIR OWN USE AND CONSUMPTION ON THEIR NATIONS' OR TRIBES' QUAL-
IFIED  RESERVATION,  or  sold  to  the  United States or sold to or by a
voluntary unincorporated organization of the armed forces of the  United
States  operating  a place for the sale of goods pursuant to regulations
promulgated by the appropriate executive agency of the United States, to
the extent provided in such regulations and policy statements of such an
agency applicable to such sales.   THE TAX IMPOSED BY  THIS  SECTION  IS
IMPOSED  ON  ALL CIGARETTES SOLD ON AN INDIAN RESERVATION TO NON-MEMBERS

S. 8285                             9                           A. 11515

OF THE INDIAN NATION OR TRIBE AND TO NON-INDIANS AND  EVIDENCE  OF  SUCH
TAX  SHALL BE BY MEANS OF AN AFFIXED CIGARETTE TAX STAMP. INDIAN NATIONS
OR TRIBES MAY ELECT TO PARTICIPATE IN THE INDIAN  TAX  EXEMPTION  COUPON
SYSTEM ESTABLISHED IN SECTION FOUR HUNDRED SEVENTY-ONE-E OF THIS ARTICLE
WHICH PROVIDES A MECHANISM FOR THE COLLECTION OF THE TAX IMPOSED BY THIS
SECTION ON CIGARETTE SALES ON QUALIFIED RESERVATIONS TO SUCH NON-MEMBERS
AND  NON-INDIANS  AND FOR THE DELIVERY OF QUANTITIES OF TAX-EXEMPT CIGA-
RETTES TO INDIAN NATIONS OR TRIBES FOR THE PERSONAL USE AND  CONSUMPTION
OF  QUALIFIED MEMBERS OF THE INDIAN NATION OR TRIBE. IF AN INDIAN NATION
OR TRIBE DOES NOT ELECT TO  PARTICIPATE  IN  THE  INDIAN  TAX  EXEMPTION
COUPON  SYSTEM, THE PRIOR APPROVAL SYSTEM SHALL BE THE MECHANISM FOR THE
DELIVERY OF QUANTITIES OF TAX-EXEMPT CIGARETTES  TO  INDIAN  NATIONS  OR
TRIBES  FOR THE PERSONAL USE AND CONSUMPTION OF QUALIFIED MEMBERS OF THE
INDIAN NATION OR TRIBE AS PROVIDED FOR IN PARAGRAPH (B)  OF  SUBDIVISION
FIVE  OF  THIS  SECTION.  Such tax on cigarettes shall be at the rate of
[two] FOUR dollars and [seventy-five] THIRTY-FIVE cents for each  twenty
cigarettes  or fraction thereof, provided, however, that if a package of
cigarettes contains more than twenty cigarettes, the rate of tax on  the
cigarettes  in  such  package in excess of twenty shall be [sixty-eight]
ONE DOLLAR AND EIGHT and three-quarters cents for each  five  cigarettes
or  fraction  thereof.  Such tax is intended to be imposed upon only one
sale of the same package of cigarettes. It shall be  presumed  that  all
cigarettes  within  the  state  are subject to tax until the contrary is
established, and the burden of proof that any cigarettes are not taxable
hereunder shall be upon the person in possession thereof.
  S 2. Subdivision 2 of section 471 of the tax law, as amended by  chap-
ter 6 of the laws of 1961, is amended to read as follows:
  2. It is intended that the ultimate incidence of and liability for the
tax  shall  be upon the consumer, and that any agent or dealer who shall
pay the tax to the [tax commission] COMMISSIONER shall collect  the  tax
from  the purchaser or consumer. Except as hereinafter provided, the tax
shall be advanced and paid by the agent. The agent shall be  liable  for
the  collection  and  payment  of  the tax on cigarettes imposed by this
article and shall pay the tax to the [tax  commission]  COMMISSIONER  by
purchasing,  under  such  regulations as [it] HE OR SHE shall prescribe,
adhesive stamps of such designs and denominations  as  [it]  HE  OR  SHE
shall  prescribe.  The  tax on cigarettes may also be paid by or through
the use of metering machines if the  [tax  commission]  COMMISSIONER  so
prescribes.  Agents, located within or without the state, shall purchase
stamps and affix such stamps in the manner  prescribed  to  packages  of
cigarettes  to be sold within the state, in which case any dealer subse-
quently receiving such  stamped  packages  of  cigarettes  will  not  be
required  to  purchase  and affix stamps on such packages of cigarettes.
[Notwithstanding any other provision of this article, the tax commission
may by regulation provide that the tax on  cigarettes  imposed  by  this
article  shall  be  collected  without the use of stamps] ALL CIGARETTES
SOLD BY AGENTS AND WHOLESALERS TO INDIAN NATIONS OR TRIBES  OR  RESERVA-
TION  CIGARETTE SELLERS LOCATED ON AN INDIAN RESERVATION MUST BEAR A TAX
STAMP.
  S 3. Section 471 of the tax law is amended by adding a new subdivision
5 to read as follows:
  5. PRIOR APPROVAL SYSTEM.   (A)  FOR  ANY  YEAR  THAT  THE  RECOGNIZED
GOVERNING  BODY  OF AN INDIAN NATION OR TRIBE HAS NOT ELECTED TO PARTIC-
IPATE IN THE INDIAN TAX EXEMPTION COUPON SYSTEM ESTABLISHED  IN  SECTION
FOUR HUNDRED SEVENTY-ONE-E OF THIS ARTICLE, PARAGRAPH (B) OF THIS SUBDI-
VISION  PROVIDES FOR THE PRIOR APPROVAL SYSTEM TO BE THE MECHANISM AS TO

S. 8285                            10                           A. 11515

HOW INDIAN NATIONS  OR  TRIBES  OR  RESERVATION  CIGARETTE  SELLERS  CAN
PURCHASE  ADEQUATE  QUANTITIES OF TAX-EXEMPT CIGARETTES FOR THE PERSONAL
USE AND CONSUMPTION OF QUALIFIED MEMBERS OF THE INDIAN NATION  OR  TRIBE
ON THEIR NATIONS' OR TRIBES' QUALIFIED RESERVATION.
  (B)  IF AN INDIAN NATION OR TRIBE DOES NOT ELECT TO PARTICIPATE IN THE
INDIAN TAX EXEMPTION COUPON SYSTEM, INDIAN NATIONS OR TRIBES OR RESERVA-
TION CIGARETTE SELLERS MAY PURCHASE FROM NEW YORK STATE  LICENSED  CIGA-
RETTE STAMPING AGENTS AND WHOLESALERS AN ADEQUATE QUANTITY OF TAX-EXEMPT
CIGARETTES  BASED ON PROBABLE DEMAND ON THEIR NATIONS' OR TRIBES' QUALI-
FIED RESERVATION FOR OFFICIAL NATION OR TRIBAL OR QUALIFIED  INDIAN  USE
OR  CONSUMPTION  FROM  AGENTS  AND  WHOLESALERS  WHO HAVE RECEIVED PRIOR
APPROVAL FROM THE DEPARTMENT. ALL SUCH  PRE-APPROVED  TAX  EXEMPT  CIGA-
RETTES  SHALL  NONETHELESS  BEAR A TAX STAMP. THE DEPARTMENT SHALL GRANT
AGENTS AND WHOLESALERS PRIOR APPROVAL IN A MANNER AND FORM TO BE  DETER-
MINED  BY  THE  DEPARTMENT  AND AS MAY BE PRESCRIBED BY REGULATION.  THE
DEPARTMENT SHALL ISSUE EXPEDITED REFUNDS OR CREDITS TO  AGENTS  WHENEVER
THE  DEPARTMENT  GRANTS  SUCH  PRIOR APPROVALS. PROBABLE DEMAND SHALL BE
DETERMINED AS PROVIDED BY SUBDIVISION TWO OF SECTION FOUR HUNDRED SEVEN-
TY-ONE-E OF THIS ARTICLE AND AS MAY BE PRESCRIBED BY REGULATION.
  S 4. Section 471 of the tax law is amended by adding a new subdivision
6 to read as follows:
  6. TAX AGREEMENTS WITH INDIAN NATIONS OR TRIBES.  IF AN INDIAN  NATION
OR  TRIBE  ENTERS  INTO  AN AGREEMENT WITH THE STATE AND THE LEGISLATURE
APPROVES SUCH AGREEMENT OR IF AN INDIAN NATION OR TRIBE ENTERS  INTO  AN
AGREEMENT  WITH  THE  STATE  THAT  IS  PART  OF  A STIPULATION AND ORDER
APPROVED BY A FEDERAL COURT OF COMPETENT JURISDICTION REGARDING THE SALE
AND DISTRIBUTION OF CIGARETTES ON  THE  NATION'S  OR  TRIBE'S  QUALIFIED
RESERVATION,  THE TERMS OF SUCH AGREEMENT SHALL TAKE PRECEDENCE OVER THE
PROVISIONS OF THIS ARTICLE AND EXEMPT SALES TO NON-MEMBERS OF THE  TRIBE
OR  NATION  AND NON-INDIANS BY SUCH NATION FROM SUCH TAXES TO THE EXTENT
THAT SUCH TAXES ARE SPECIFICALLY REFERRED TO IN THE AGREEMENT,  AND  THE
SALE OR DISTRIBUTION, INCLUDING TRANSPORTATION, OF ANY CIGARETTES TO THE
NATION'S  OR  TRIBE'S  QUALIFIED RESERVATION SHALL BE IN ACCORDANCE WITH
THE PROVISIONS OF SUCH AGREEMENT.
  S 5. Section 471-a of the tax law, as amended by  section  2  of  part
RR-1 of chapter 57 of the laws of 2008, is amended to read as follows:
  S  471-a.  Use tax on cigarettes. There is hereby imposed and shall be
paid a tax on all cigarettes used in the state  by  any  person,  except
that  no  tax  shall  be imposed (1) if the tax provided in section four
hundred seventy-one of this article is paid, (2) on  the  use  of  ciga-
rettes  which are exempt from the tax imposed by said section, or (3) on
the use of four hundred or less cigarettes, brought into the  state  on,
or  in the possession of, any person. Such tax on cigarettes shall be at
the rate of [two] FOUR dollars and [seventy-five] THIRTY-FIVE cents  for
each twenty cigarettes or fraction thereof, provided, however, that if a
package  of cigarettes contains more than twenty cigarettes, the rate of
tax on the cigarettes in such package  in  excess  of  twenty  shall  be
[sixty-eight]  ONE  DOLLAR  AND  EIGHT and three-quarters cents for each
five cigarettes or fraction thereof.   Within  twenty-four  hours  after
liability  for  the  tax  accrues,  each such person shall file with the
commissioner a return in such form as  the  commissioner  may  prescribe
together  with  a  remittance  of  the  tax shown to be due thereon. For
purposes of this article, the word "use" means the exercise of any right
or power actual or constructive and shall include but is not limited  to
the receipt, storage or any keeping or retention for any length of time,
but  shall not include possession for sale. All other provisions of this

S. 8285                            11                           A. 11515

article if not  inconsistent  shall  apply  to  the  administration  and
enforcement  of the tax imposed by this section in the same manner as if
the language of said provisions had been incorporated in full into  this
section.
  S  6.  Subdivision  1  of  section  471-e  of the tax law, as added by
section 2 of part K of chapter 61 of the laws of  2005,  is  amended  to
read as follows:
  1.  [General]  INDIAN TAX EXEMPTION COUPON SYSTEM. (a) Notwithstanding
any provision of this article to  the  contrary  qualified  Indians  may
purchase  cigarettes  for such qualified Indians' own use or consumption
exempt from cigarette tax on their nations' or tribes' qualified  reser-
vations. However, such qualified Indians purchasing cigarettes off their
reservations  or on another nation's or tribe's reservation, and non-In-
dians making cigarette purchases on an Indian reservation shall  not  be
exempt  from  paying the cigarette tax when purchasing cigarettes within
this state. Accordingly, all cigarettes sold on an Indian reservation to
non-members of the nation or tribe or to non-Indians shall be taxed, and
evidence of such tax will be by means of an affixed cigarette tax stamp.
  (b) In order to ensure an adequate quantity of  cigarettes  on  Indian
reservations which may be purchased by qualified Indians exempt from the
cigarette  tax,  the  RECOGNIZED  GOVERNING  BODY OF AN INDIAN NATION OR
TRIBE MAY ANNUALLY ELECT TO PARTICIPATE  IN  THE  INDIAN  TAX  EXEMPTION
COUPON  SYSTEM  FOR  THAT  YEAR.  IF THE RECOGNIZED GOVERNING BODY OF AN
INDIAN NATION OR TRIBE ELECTS WITHIN THE TIME SPECIFIED BY  THE  DEPART-
MENT  TO  PARTICIPATE IN THE INDIAN TAX EXEMPTION COUPON SYSTEM FOR THAT
YEAR, THE department shall provide THE Indian [nations and tribes within
this state] NATION OR TRIBE with Indian tax  exemption  coupons  as  set
forth in this section. [A] IF THE RECOGNIZED GOVERNING BODY OF AN INDIAN
NATION  OR  TRIBE  DOES  NOT  ELECT  TO  PARTICIPATE  IN  THE INDIAN TAX
EXEMPTION COUPON SYSTEM FOR THAT YEAR OR DOES NOT MAKE THIS ELECTION FOR
THAT YEAR WITHIN THE TIME SPECIFIED BY THE  DEPARTMENT,  NO  INDIAN  TAX
EXEMPTION  COUPONS  WILL  BE PROVIDED TO THAT INDIAN NATION OR TRIBE FOR
THAT YEAR.  INSTEAD, FOR THAT YEAR, THE PRIOR APPROVAL SYSTEM SET  FORTH
IN PARAGRAPH (B) OF SUBDIVISION FIVE OF SECTION FOUR HUNDRED SEVENTY-ONE
OF  THIS ARTICLE SHALL BE USED. WHEN THE RECOGNIZED GOVERNING BODY OF AN
INDIAN NATION OR TRIBE ELECTS TO USE THE  INDIAN  TAX  EXEMPTION  COUPON
SYSTEM FOR A YEAR, AN INDIAN NATION OR TRIBE AND A reservation cigarette
seller  shall  be able to present such Indian tax exemption coupons to a
wholesale dealer licensed pursuant to this article in order to  purchase
stamped  cigarettes  exempt  from  the  imposition of the cigarette tax.
Qualified Indians may purchase cigarettes from a  reservation  cigarette
seller  exempt  from  the cigarette tax even though such cigarettes will
have an affixed cigarette tax stamp.
  S 7. Paragraph (a) of subdivision 2 of section 471-e of the  tax  law,
as  added  by  section 2 of part K of chapter 61 of the laws of 2005, is
amended to read as follows:
  (a) IF THE RECOGNIZED GOVERNING BODY OF  AN  INDIAN  NATION  OR  TRIBE
TIMELY  ELECTS  TO PARTICIPATE IN THE INDIAN TAX EXEMPTION COUPON SYSTEM
FOR THAT YEAR, Indian tax exemption coupons shall  be  provided  to  the
recognized  governing  body  of  [each]  SUCH  Indian nation or tribe to
ensure that [each] SUCH Indian nation or  tribe  can  obtain  cigarettes
upon  which  the  tax  will  not  be  collected  that are for the use or
consumption by the nation or tribe or by the members of such  nation  or
tribe.  The Indian tax exemption coupons shall be provided to [the] SUCH
Indian nations or tribes on a quarterly basis for each of the four quar-
ters beginning with the first day of December, March, June, and  Septem-

S. 8285                            12                           A. 11515

ber  OF THAT YEAR. It is intended that the Indian nations or tribes will
retain the amount of Indian tax exemption coupons they  will  need  each
quarter  to  purchase  cigarettes for official nation or tribal use, and
will  distribute  the remaining Indian tax exemption coupons to reserva-
tion cigarette sellers on such nations' or  tribes'  qualified  reserva-
tions. Only Indian nations or tribes or reservation cigarette sellers on
their  qualified  reservations  may  redeem  such  Indian  tax exemption
coupons pursuant to this section.
  S 8. Paragraph (d) of subdivision 3 of section 471-e of the  tax  law,
as  added  by  section 2 of part K of chapter 61 of the laws of 2005, is
amended to read as follows:
  (d) [A wholesale dealer] WHOLESALE DEALERS shall SELL ONLY TAX-STAMPED
CIGARETTES TO INDIAN NATIONS AND TRIBES, RESERVATION  CIGARETTE  SELLERS
AND  ALL  OTHER PURCHASERS, BUT SHALL not collect the cigarette tax from
any purchaser to the extent the purchaser gives  such  wholesale  dealer
Indian  tax  exemption  coupons entitling the purchaser to purchase such
quantities of  cigarettes  as  allowed  for  on  each  such  Indian  tax
exemption coupon without paying the cigarette tax.
  S  9. Section 471-e of the tax law is amended by adding a new subdivi-
sion 6 to read as follows:
  6. THE FAILURE OF THE DEPARTMENT TO ESTABLISH, ISSUE AND PROVIDE INDI-
AN TAX EXEMPTION COUPONS, PURSUANT TO SUBDIVISIONS ONE AND TWO  OF  THIS
SECTION, OR TO PROMULGATE ANY RULES, REGULATIONS OR DIRECTIVES NECESSARY
TO IMPLEMENT THE PROVISIONS OF THIS SECTION, SHALL NOT RELIEVE WHOLESALE
DEALERS  OF THE OBLIGATION TO SELL ONLY TAX-STAMPED CIGARETTES TO INDIAN
NATIONS AND TRIBES, AND TO RESERVATION CIGARETTE SELLERS.
  S 10. Section 482 of the tax law, as amended by section 125-b of  part
C of chapter 58 of the laws of 2009, is amended as follows:
  S 482. Deposit and disposition of revenue. (a) All taxes, fees, inter-
est  and  penalties collected or received by the commissioner under this
article and article twenty-A of this  chapter  shall  be  deposited  and
disposed  of  pursuant to the provisions of section one hundred seventy-
one-a of this chapter.  (b)  From  the  taxes,  interest  and  penalties
collected  or  received  by the commissioner under sections four hundred
seventy-one and four hundred seventy-one-a of this article, effective on
and  after  March  first,  two  thousand,  forty-nine   and   fifty-five
hundredths, and effective on and after February first, two thousand two,
forty-three  and  seventy  hundredths;  and  effective  on and after May
first, two thousand  two,  sixty-four  and  fifty-five  hundredths;  and
effective  on  and  after April first, two thousand three, sixty-one and
twenty-two hundredths percent; and effective on and  after  June  third,
two  thousand  eight,  seventy  and  sixty-three hundredths percent; AND
EFFECTIVE ON AND AFTER JULY FIRST, TWO THOUSAND TEN, SEVENTY-SIX PERCENT
collected or received under those sections  must  be  deposited  to  the
credit  of  the  tobacco  control  and  insurance initiatives pool to be
established and distributed by the commissioner of health in  accordance
with  section twenty-eight hundred seven-v of the public health law. (c)
From the fees collected or received by the commissioner  under  subdivi-
sion  two of section four hundred eighty-a of this article, effective on
or after September first, two thousand nine,  any  monies  collected  or
received  under  that section in excess of three million dollars must be
deposited to the credit of the tobacco control and insurance initiatives
pool to be distributed by the commissioner of health in accordance  with
section twenty-eight hundred seven-v of the public health law.
  S  11.  Within  60  days after the effective date of this section, the
department of taxation and finance shall promulgate any rules and  regu-

S. 8285                            13                           A. 11515

lations  and  take  any  other  actions necessary to fully implement the
provisions of section 471-e of the tax law, including, but  not  limited
to,  the  establishment,  issuance and provision of Indian tax exemption
coupons,  pursuant to subdivisions one and two of such section. Further-
more, within 90 days after the  effective  date  of  this  section,  the
commissioner  of  taxation  and finance shall submit a written report to
the legislature explaining all actions taken by the department of  taxa-
tion and finance to comply with the provisions of this section.
  S  12.  Any Indian nation or tribe, distributor, dealer, or interested
party may commence a cause of action for injunctive relief ordering  the
department  of  taxation  and  finance  to comply with the provisions of
section eleven of this act.
  S 13. Notwithstanding any other provision of law to the contrary,  the
tax  due  on  cigarettes  possessed in New York state as of the close of
business on June 30, 2010 by any person for sale solely attributable  to
the increase imposed by the amendments to section 471 of the tax law, as
amended by section one of this act, shall be paid by September 20, 2010,
subject to such terms and conditions as the commissioner of taxation and
finance shall prescribe.
  S  14.  Subdivision  1  of  section  470 of the tax law, as amended by
section 1 of part MM-1 of chapter 57 of the laws of 2008, is amended  to
read as follows:
  1.  "Cigarette."  [(a)] Any roll for smoking made wholly or in part of
tobacco or of any other substance [wrapped in  paper  or  in  any  other
substance  not  containing  tobacco,  and  (b) any roll for smoking made
wholly or in part of tobacco wrapped in any substance containing tobacco
that, because of its appearance, the type of tobacco used in the filler,
or its packaging and labeling, is likely to be offered to, or  purchased
by, consumers as a cigarette described in paragraph (a) of this subdivi-
sion.  However,  a  roll  will  not  be considered to be a cigarette for
purposes of paragraph (b) of this subdivision if it is not treated as  a
cigarette  for  federal excise tax purposes under the applicable federal
statute in effect on April first, two thousand eight],  IRRESPECTIVE  OF
SIZE  OR SHAPE AND WHETHER OR NOT SUCH TOBACCO OR SUBSTANCE IS FLAVORED,
ADULTERATED OR MIXED WITH ANY OTHER INGREDIENT, THE WRAPPER OR COVER  OF
WHICH  IS  MADE  OF  PAPER OR ANY OTHER SUBSTANCE OR MATERIAL BUT IS NOT
MADE IN WHOLE OR IN PART OF TOBACCO.
  S 15. Subdivision 2 of section 470 of  the  tax  law,  as  amended  by
section  1 of part MM-1 of chapter 57 of the laws of 2008, is amended to
read as follows:
  2. "Tobacco products." Any cigar, INCLUDING A LITTLE CIGAR, or  tobac-
co, other than cigarettes, intended for consumption by smoking, chewing,
or as snuff.
  S  16.  Section 470 of the tax law is amended by adding a new subdivi-
sion 2-b to read as follows:
  2-B. "LITTLE CIGAR." ANY ROLL FOR SMOKING MADE WHOLLY OR  IN  PART  OF
TOBACCO  IF SUCH PRODUCT IS WRAPPED IN ANY SUBSTANCE CONTAINING TOBACCO,
OTHER THAN NATURAL LEAF TOBACCO WRAPPER, AND WEIGHING NOT MORE THAN FOUR
POUNDS PER THOUSAND.
  S 17. Subdivision 19 of section 470  of  the  tax  law,  as  added  by
section  1 of part MM-1 of chapter 57 of the laws of 2008, is amended to
read as follows:
  19. "Cigar." Any roll of tobacco wrapped in leaf  tobacco  or  in  any
substance  containing  tobacco (other than any roll of tobacco that is a
cigarette as defined in subdivision one of this  section).  [However,  a
roll  will not be considered to be a cigar for purposes of this subdivi-

S. 8285                            14                           A. 11515

sion if it is not treated as a cigar for  federal  excise  tax  purposes
under the applicable federal statute in effect on April first, two thou-
sand eight.] "CIGAR" SHALL INCLUDE, EXCEPT WHERE EXPRESSLY EXCLUDED, ANY
LITTLE CIGAR.
  S  18. Paragraphs (a) and (b) of subdivision 1 of section 471-b of the
tax law, paragraph (a) as amended by section 1 of part I-1 of chapter 57
of the laws of 2009, and paragraph (b) as added by  section  2  of  part
QQ-1 of chapter 57 of the laws of 2008, are amended to read as follows:
  (a)  Such  tax  on tobacco products other than snuff AND LITTLE CIGARS
shall be at the rate of [forty-six] SEVENTY-FIVE percent of  the  whole-
sale price, and is intended to be imposed only once upon the sale of any
tobacco products other than snuff AND LITTLE CIGARS.
  (b)  Such  tax on snuff shall be at the rate of [ninety-six cents] TWO
DOLLARS per ounce and a proportionate rate on any fractional parts of an
ounce, provided that cans or packages of snuff with a net weight of less
than one ounce shall be taxed at the equivalent rate of cans or packages
weighing one ounce. Such tax shall be computed based on the  net  weight
as  listed  by the manufacturer, and is intended to be imposed only once
upon the sale of any snuff.
  S 19. Subdivision 1 of section 471-b of the  tax  law  is  amended  by
adding a new paragraph (c) to read as follows:
  (C)  SUCH  TAX  ON  LITTLE CIGARS SHALL BE AT THE SAME RATE IMPOSED ON
CIGARETTES UNDER THIS ARTICLE AND IS INTENDED TO BE  IMPOSED  ONLY  ONCE
UPON THE SALE OF ANY LITTLE CIGARS.
  S  20.  Paragraphs (i) and (ii) of subdivision (a) of section 471-c of
the tax law, as amended by section 2 of part I-1 of chapter  57  of  the
laws of 2009, are amended to read as follows:
  (i)  Such  tax  on tobacco products other than snuff AND LITTLE CIGARS
shall be at the rate of [forty-six] SEVENTY-FIVE percent of  the  whole-
sale price.
  (ii)  Such tax on snuff shall be at the rate of [ninety-six cents] TWO
DOLLARS per ounce and a proportionate rate on any fractional parts of an
ounce, provided that cans or packages of snuff with a net weight of less
than one ounce shall be taxed at the equivalent rate of cans or packages
weighing one ounce. Such tax shall be computed based on the  net  weight
as listed by the manufacturer.
  S  21.  Subdivision  (a) of section 471-c of the tax law is amended by
adding a new paragraph (iii) to read as follows:
  (III) SUCH TAX ON LITTLE CIGARS SHALL BE AT THE SAME RATE  IMPOSED  ON
CIGARETTES  UNDER  THIS  ARTICLE AND IS INTENDED TO BE IMPOSED ONLY ONCE
UPON THE SALE OF ANY LITTLE CIGARS.
  S 22. Subdivision 1 of section 11-1301 of the administrative  code  of
the city of New York, as amended by section 3 of part MM-1 of chapter 57
of the laws of 2008, is amended to read as follows:
  1.  "Cigarette."  [(a)] Any roll for smoking made wholly or in part of
tobacco or any other  substance  [wrapped  in  paper  or  in  any  other
substance  not  containing  tobacco,  and  (b) any roll for smoking made
wholly or in part of tobacco wrapped in any substance containing tobacco
which, because of its appearance,  the  type  of  tobacco  used  in  the
filler,  or  its  packaging and labeling, is likely to be offered to, or
purchased by, consumers as a cigarette described  in  paragraph  (a)  of
this  subdivision.  However, a roll will not be considered to be a ciga-
rette for purposes of paragraph (b) of this subdivision  if  it  is  not
treated  as a cigarette for federal excise tax purposes under the appli-
cable federal statute in effect on April  first,  two  thousand  eight],
IRRESPECTIVE  OF  SIZE  OR  SHAPE  AND  WHETHER  OR  NOT SUCH TOBACCO OR

S. 8285                            15                           A. 11515

SUBSTANCE IS FLAVORED, ADULTERATED OR MIXED WITH ANY  OTHER  INGREDIENT,
THE WRAPPER OR COVER OF WHICH IS MADE OF PAPER OR ANY OTHER SUBSTANCE OR
MATERIAL BUT IS NOT MADE IN WHOLE OR IN PART OF TOBACCO.
  S  23.  Subdivision  b of section 20-201 of the administrative code of
the city of New York, as amended by section 4 of part MM-1 of chapter 57
of the laws of 2008, is amended to read as follows:
  b. "Cigarette" shall mean [(1)] any roll for smoking made wholly or in
part of tobacco or any other substance [wrapped in paper or in any other
substance not containing tobacco, and (2)  any  roll  for  smoking  made
wholly or in part of tobacco wrapped in any substance containing tobacco
that, because of its appearance, the type of tobacco used in the filler,
or  its packaging and labeling, is likely to be offered to, or purchased
by, consumers as a cigarette described in paragraph one of this subdivi-
sion. However, a roll will not be  considered  to  be  a  cigarette  for
purposes  of paragraph two of this subdivision if it is not treated as a
cigarette for federal excise tax purposes under the  applicable  federal
statute  in  effect on April first, two thousand eight], IRRESPECTIVE OF
SIZE OR SHAPE AND WHETHER OR NOT SUCH TOBACCO OR SUBSTANCE IS  FLAVORED,
ADULTERATED  OR MIXED WITH ANY OTHER INGREDIENT, THE WRAPPER OR COVER OF
WHICH IS MADE OF PAPER OR ANY OTHER SUBSTANCE OR  MATERIAL  BUT  IS  NOT
MADE IN WHOLE OR IN PART OF TOBACCO.
  S  24.  Subdivision  2 of section 1 of chapter 235 of the laws of 1952
relating to enabling any city of the state having a  population  of  one
million  or more to adopt, and amend local laws, imposing certain speci-
fied 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, as amended by section 5 of part MM-1 of chapter 57 of the laws  of
2008, is amended to read as follows:
  (2)  As used herein, the term "cigarette" shall mean and include [(a)]
any roll for smoking made wholly or in part of tobacco or of  any  other
substance  [wrapped  in  paper  or in any other substance not containing
tobacco, and (b) any roll for smoking made wholly or in part of  tobacco
wrapped in any substance containing tobacco that, because of its appear-
ance,  the  type  of  tobacco  used  in the filler, or its packaging and
labeling, is likely to be offered to, or purchased by,  consumers  as  a
cigarette  described  in  paragraph (a) of this subdivision.  However, a
roll will not be considered to be a cigarette for purposes of  paragraph
(b)  of this subdivision if it is not treated as a cigarette for federal
excise tax purposes under the applicable federal statute  in  effect  on
April  first, two thousand eight.  The term "cigar" does not include any
cigarette as defined in this subdivision], IRRESPECTIVE OF SIZE OR SHAPE
AND WHETHER OR NOT SUCH TOBACCO OR SUBSTANCE IS FLAVORED, ADULTERATED OR
MIXED WITH ANY OTHER INGREDIENT, THE WRAPPER OR COVER OF WHICH  IS  MADE
OF  PAPER OR ANY OTHER SUBSTANCE OR MATERIAL BUT IS NOT MADE IN WHOLE OR
IN PART OF TOBACCO.
  S 25. Severability clause. If any clause, sentence, paragraph,  subdi-
vision,  section,  or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision,  section,
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.

S. 8285                            16                           A. 11515

  S 26. This act shall  take  effect  immediately;  provided,  that  (a)
section  one of this act, as to the rate change, and sections five, ten,
and thirteen of this act shall take effect July 1, 2010, and shall apply
to all cigarettes possessed in the state by any person for sale and  all
cigarettes used in the state by any person on or after July 1, 2010; and
(b)  section  one  of  this  act,  other than as to the rate change, and
sections two through four and six through nine of this act will apply to
quarters beginning on and after September  1,  2010;  and  (c)  sections
fourteen  through twenty-four of this act shall take effect on August 1,
2010 as to tobacco products, snuff and little cigars which first  become
subject  to  taxation  under  article 20 of the tax law on or after such
effective date.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included herein.
  S  3.  This  act shall take effect immediately provided, however, that
the applicable effective dates of Parts A through D of this act shall be
as specifically set forth in the last section of such Parts.