EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12372-03-9
S. 57--B 2 A. 157--B
pension expenses; in relation to suballocation of certain education
department accruals; to amend chapter 57 of the laws of 2004, amending
the labor law and other laws relating to implementation of the state
fiscal plan for the 2004-2005 state fiscal year, in relation to
extending certain provisions of such chapter; to amend the general
municipal law, in relation to withdrawal of funds and examination of
reserve funds; to amend the education law, in relation to federal
subsidy payments that reduce the actual interest costs incurred by the
issuer and providing for the repeal of certain provisions upon expira-
tion thereof (Part A); Intentionally omitted (Part B); Intentionally
omitted (Part C); Intentionally omitted (Part D); Intentionally omit-
ted (Part E); to amend the education law, in relation to expanding the
definition of income in tuition assistance program awards determi-
nations (Part F); Intentionally omitted (Part G); Intentionally omit-
ted (Part H); Intentionally omitted (Part I); to amend the education
law and the state finance law, in relation to the establishment of a
program to provide loans to students to finance the costs of post-sec-
ondary education; to amend the public authorities law, in relation to
the issuance of bonds in connection therewith; to repeal sections 682,
683 and 684 of the education law relating thereto; and to repeal
section 2405-a of the public authorities law relating to loans to
students (Part J); Intentionally omitted (Part K); Intentionally omit-
ted (Part L); to amend the tax law and the administrative code of the
city of New York, in relation to reducing the state school tax credit
on city personal income taxes; to repeal section 1306-b of the real
property tax law and section 178 of the tax law relating to the Middle
Class STAR rebate program; and to repeal section 171-q of the tax law
relating to offsets taken from the basic STAR rebate amounts (Part M);
Intentionally omitted (Part N); to amend the emergency tenant
protection act of nineteen seventy-four, in relation to offices of the
division of housing and community renewal (Part O); Intentionally
omitted (Part P); to amend section 28 of part C of chapter 83 of the
laws of 2002 amending the executive law and other laws relating to
funding for children and family services, in relation to the extension
of provisions on funding of child welfare services (Part Q); to amend
chapter 81 of the laws of 1995 amending the vehicle and traffic law
and other laws relating to the enforcement of support through the
suspension of driving privileges, in relation to the effectiveness of
such provisions (Part R); Intentionally omitted (Part S); Inten-
tionally omitted (Part T); to amend the social services law, in
relation to increasing the standards of monthly need for aged, blind
and disabled persons (Part U); to amend the social services law and
the tax law, in relation to wage reporting for purposes of determining
eligibility for foster children (Part V); relating to the closing and
downsizing of certain facilities to align their capacity with their
facility and service needs, and providing for the repeal of such
provisions (Part W); Intentionally omitted (Part X); to amend the
social services law, in relation to amounts of public assistance (Part
Y); to amend chapter 62 of the laws of 2003 amending the state finance
law and other laws relating to authorizing and directing the state
comptroller to loan money to certain funds and accounts, in relation
to extending the statutory authorization and the rules governing
contributions to the unemployment insurance interest assessment
surcharge fund (Part Z); to amend the executive law, in relation to
providing for assessment of civil fines and penalties in appropriate
cases (Part AA); to amend the labor law, in relation to increasing
S. 57--B 3 A. 157--B
boiler inspection fees and asbestos licensing, certification and
notification fees (Part BB); to amend the labor law, in relation to
explosives; to amend the labor law and the general business law, in
relation to misdemeanor penalties; and to amend the penal law, in
relation to permits for fireworks displays (Part CC); to amend the
general business law, in relation to establishing civil penalties for
uncertified crane operation (Part DD); to amend the education law, in
relation to establishing a memorial award for children and financial
dependents of those deceased as a result of Continental Airlines
Flight 3407 (Part EE); to amend the private housing finance law, in
relation to the removal of funding limitations (Part FF); to amend the
education law, in relation to the financing of the city university of
New York; and to amend the education law, in relation to the powers
and duties of trustees of the state university of New York (Part GG);
to amend the education law, in relation to the capital costs of Medgar
Evers college; and to repeal paragraph (ii) of subdivision E of
section 6221 of such law relating thereto (Part HH); to amend chapter
420 of the laws of 2002 amending the education law relating to the
profession of social work; and to amend chapter 676 of the laws of
2002 amending the education law relating to defining the practice of
psychology, in relation to the professions of social work and mental
health practitioners (Part II); relating to the continuation of the
demonstration project established pursuant to part G of chapter 58 of
the laws of 2006; and providing for the repeal of such provisions upon
expiration thereof (Part JJ); requiring reporting and performance data
for expenditures made to local social services districts for the flex-
ible fund for family services (Part KK); to amend the tax law and the
administrative code of the city of New York, in relation to the defi-
nition of presence in New York in determining a taxpayer's New York
residency status (Part A-1); to amend the tax law, in relation to
changing the tax classification of health maintenance organizations
(Part B-1); to amend the tax law, in relation to limiting various
underutilized tax credits (Part C-1); to amend the tax law, in
relation to collection and offset agreements with the United States or
other states (Part D-1); to amend the tax law, in relation to the
treatment of overcapitalized captive insurance companies (Part E-1);
to amend the tax law, in relation to requiring nonresidents to include
as a source of income the gain or loss from the sale of a partnership,
limited liability corporation, S corporation or a non-publicly traded
C corporation with one hundred or fewer shareholders to the extent
that the gain or loss includes gain or loss from real property located
in New York (Part F-1); to amend the tax law, in relation to changing
the percentage used to complete the mandatory first installment of
franchise tax and the metropolitan commuter transportation district
business tax surcharge under articles 9, 9-A, 32 and 33 (Part G-1); to
amend the tax law, in relation to adding filing fees for partnerships
(Part H-1); to amend the tax law, in relation to the tax on tobacco
products (Part I-1); to amend the public housing law and the tax law,
in relation to providing a credit against income tax for persons or
entities investing in low-income housing (Part J-1); to amend the tax
law, in relation to reauthorizing the commissioner of taxation and
finance to require the use of decals in certain instances (Part K-1);
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
S. 57--B 4 A. 157--B
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 L-1); to amend the tax law, in relation to
changing the rate of the prepaid sales tax on cigarettes (Part M-1);
to amend the tax law, in relation to curtailing certain abusive sales
and use tax avoidance schemes by narrowing the use tax non-resident
exemption for certain items of tangible personal property and the
sales tax exemption for commercial aircraft (Part N-1); to amend the
tax law, in relation to making technical corrections regarding the
operation of video lottery gaming and approving the construction or
alteration of any facility housing video lottery gaming (Part O-1); to
amend the tax law, in relation to expanding the definition of vendor
for purposes of the sales and compensating use taxes (Part P-1); to
amend the tax law, in relation to participation in more than one
joint, multi-jurisdiction and out-of-state lottery (Part Q-1); to
amend the tax law, in relation to the special tax on passenger car
rentals under article 28-A of such law (Part R-1); to amend the gener-
al municipal law and the tax law, in relation to enacting reforms to
the empire zones program; and to repeal certain provisions of such
laws relating thereto (Part S-1); to amend the tax law, in relation to
the fees for replacement highway use tax credentials (Part T-1); to
amend the tax law, in relation to imposing state and local sales taxes
on certain transportation services (Part U-1); to amend the tax law,
in relation to imposing a penalty for failure to keep mandatory
records, to provide records in auditable format or to provide access
to mandatory records maintained electronically (Subpart A); to amend
the tax law, in relation to the failure of a responsible person to
collect and pay over withholding tax (Subpart B); to amend the tax
law, in relation to providing expedited hearings relating to cancella-
tions, revocations, or suspensions of certain credentials and to
penalties imposed on persons who aid or assist in the filing of frau-
dulent tax documents (Subpart C); to amend the tax law, the environ-
mental conservation law, the insurance law, the lien law, the mental
hygiene law, the public health law, the social services law, the state
finance law and the administrative code of the city of New York, in
relation to decreasing the overpayment and increasing the underpayment
rates of interest, changing the overpayment interest accrual date for
sales and compensating use taxes and providing for an interest-free
period for refunds or credits of sales and compensating use taxes
(Subpart D); to amend the tax law, in relation to changing the last
quarterly withholding filing date for employers (Subpart E); to amend
the county law, in relation to authorizing district attorneys to
appoint attorneys employed by the department of taxation and finance
as special assistant district attorneys in tax cases (Subpart F); to
amend the tax law, in relation to the annual information return
providing the information about transactions with vendors (Subpart G);
to amend the tax law, in relation to clarifying some technical aspects
of the voluntary disclosure and compliance program (Subpart H); to
amend the criminal procedure law, the penal law and the tax law, in
relation to creating the offense of "tax fraud act"; to amend the tax
law, in relation to simplifying and consolidating the provisions
S. 57--B 5 A. 157--B
describing the acts that constitute offenses under such law; and to
repeal certain provisions of the tax law relating thereto (Subpart I);
to amend the tax law, in relation to changing the last quarterly with-
holding filing date for employers; and to repeal certain provisions of
such law relating thereto and to amend chapter 61 of the laws of 2005
amending the tax law relating to certain transactions and related
information, in relation to the effectiveness thereof (Subpart J)
(Part V-1); to amend the tax law and the administrative code of the
city of New York, in relation to limiting itemized deductions for
certain taxpayers and determining the amount of estimated tax install-
ments to be paid (Part W-1); to amend the tax law, in relation to
taxes on beer and wine under article 18 of the tax law (Part X-1); to
amend the tax law, in relation to the allocation of film production
credits and requires annual refundable tax credit reporting; to amend
chapter 60 of the laws of 2004, amending the tax law relating to the
empire state film production credit, in relation to aggregate amounts
of tax credits; and relating to quarterly reporting by the office of
motion picture and television development (Part Y-1); and to amend the
tax law, in relation to the personal income tax rates and benefit
recapture (Part Z-1)
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 2009-2010
state fiscal year. Each component is wholly contained within a Part
identified as Parts A through Z-1. The effective date for each partic-
ular provision contained within such Part is set forth in the last
section of such Part. Any provision in any section contained within a
Part, including the effective date of the Part, which makes a 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. Intentionally omitted.
S 2. Paragraph c of subdivision 1 of section 211-d of the education
law, as added by section 2 of part A of chapter 57 of the laws of 2008,
is amended to read as follows:
c. In a city school district located in a city of one million or more
inhabitants, a contract for excellence shall be prepared for the city
school district and each community district that meets [the above]
criteria SPECIFIED IN THIS SUBDIVISION.
S 2-a. Subdivision 1 of section 211-d of the education law is amended
by adding a new paragraph e to read as follows:
E. NOTWITHSTANDING PARAGRAPHS A AND B OF THIS SUBDIVISION, A SCHOOL
DISTRICT THAT SUBMITTED A CONTRACT FOR EXCELLENCE FOR THE TWO THOUSAND
EIGHT--TWO THOUSAND NINE SCHOOL YEAR SHALL SUBMIT A CONTRACT FOR EXCEL-
LENCE FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL YEAR IN
CONFORMITY WITH THE REQUIREMENTS OF SUBPARAGRAPH (VI) OF PARAGRAPH A OF
SUBDIVISION TWO OF THIS SECTION UNLESS ALL SCHOOLS IN THE DISTRICT ARE
IDENTIFIED AS IN GOOD STANDING.
S. 57--B 6 A. 157--B
S 3. Paragraph a of subdivision 2 of section 211-d of the education
law is amended by adding a new subparagraph (vii) to read as follows:
(VII) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION TO THE
CONTRARY, A SCHOOL DISTRICT THAT SUBMITTED A CONTRACT FOR EXCELLENCE FOR
THE TWO THOUSAND SEVEN--TWO THOUSAND EIGHT SCHOOL YEAR AND THE TWO THOU-
SAND EIGHT--TWO THOUSAND NINE SCHOOL YEAR AND IS REQUIRED TO SUBMIT A
CONTRACT FOR EXCELLENCE FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN
SCHOOL YEAR BUT DID NOT FULLY EXPEND ALL OF ITS TWO THOUSAND SEVEN--TWO
THOUSAND EIGHT FOUNDATION AID SUBJECT TO THE CONTRACT FOR EXCELLENCE
RESTRICTIONS DURING THE TWO THOUSAND SEVEN--TWO THOUSAND EIGHT SCHOOL
YEAR MAY RE-ALLOCATE AND EXPEND SUCH UNEXPENDED FUNDS DURING THE TWO
THOUSAND EIGHT--TWO THOUSAND NINE AND TWO THOUSAND NINE--TWO THOUSAND
TEN SCHOOL YEARS FOR ALLOWABLE CONTRACT FOR EXCELLENCE PROGRAMS AND
ACTIVITIES AS DEFINED IN SUBDIVISION THREE OF THIS SECTION IN A MANNER
PRESCRIBED BY THE COMMISSIONER. FOR PURPOSES OF DETERMINING MAINTENANCE
OF EFFORT PURSUANT TO SUBPARAGRAPH (VI) OF THIS PARAGRAPH FOR THE TWO
THOUSAND EIGHT--TWO THOUSAND NINE SCHOOL YEAR, FUNDS EXPENDED PURSUANT
TO THIS SUBPARAGRAPH SHALL BE INCLUDED IN THE TOTAL BUDGETED AMOUNT
APPROVED BY THE COMMISSIONER IN THE DISTRICT'S CONTRACT FOR EXCELLENCE
FOR THE TWO THOUSAND SEVEN--TWO THOUSAND EIGHT SCHOOL YEAR; PROVIDED
THAT SUCH AMOUNT SHALL NOT BE COUNTED MORE THAN ONCE IN DETERMINING
MAINTENANCE OF EFFORT FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN
SCHOOL YEAR OR THEREAFTER.
S 3-a. Paragraph b of subdivision 2 of section 211-d of the education
law is amended by adding a new subparagraph (iii) to read as follows:
(III) A CITY SCHOOL DISTRICT IN A CITY HAVING A POPULATION OF ONE
MILLION OR MORE INHABITANTS SHALL PREPARE A REPORT TO THE COMMISSIONER
ON THE STATUS OF THE IMPLEMENTATION OF ITS PLAN TO REDUCE AVERAGE CLASS
SIZES PURSUANT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH. SUCH REPORT
SHALL IDENTIFY ALL SCHOOLS THAT RECEIVED FUNDS TARGETED AT CLASS SIZE
REDUCTION EFFORTS PURSUANT TO THE REQUIREMENTS OF THIS SECTION AND
PROVIDE THE FOLLOWING INFORMATION REGARDING SUCH SCHOOLS:
(A) THE AMOUNT OF CONTRACT FOR EXCELLENCE FUNDS RECEIVED BY EACH
SCHOOL AND THE SCHOOL YEAR IN WHICH IT RECEIVED SUCH FUNDS;
(B) A DETAILED DESCRIPTION OF HOW CONTRACT FOR EXCELLENCE FUNDS
CONTRIBUTED TO ACHIEVING CLASS SIZE REDUCTION IN EACH SCHOOL THAT
RECEIVED SUCH FUNDING INCLUDING SPECIFIC INFORMATION ON THE NUMBER OF
CLASSROOMS IN EACH SCHOOL THAT EXISTED PRIOR TO RECEIVING CONTRACT FOR
EXCELLENCE FUNDS AND THE NUMBER OF NEW CLASSROOMS THAT WERE CREATED IN
EACH SCHOOL FOR EACH YEAR SUCH FUNDING WAS RECEIVED, THE NUMBER OF
CLASSROOM TEACHERS THAT EXISTED IN EACH SCHOOL PRIOR TO RECEIVING
CONTRACT FOR EXCELLENCE FUNDS AND THE NUMBER OF NEW CLASSROOM TEACHERS
IN EACH SCHOOL FOR EACH YEAR SUCH FUNDING WAS RECEIVED, THE STUDENT TO
TEACHER RATIO IN EACH SCHOOL PRIOR TO RECEIVING CONTRACT FOR EXCELLENCE
FUNDS AND THE STUDENT TO TEACHER RATIO IN EACH SCHOOL FOR EACH YEAR SUCH
FUNDING WAS RECEIVED;
(C) THE ACTUAL STUDENT ENROLLMENT FOR THE TWO THOUSAND SIX--TWO THOU-
SAND SEVEN SCHOOL YEAR, THE ACTUAL STUDENT ENROLLMENT FOR THE TWO THOU-
SAND SEVEN--TWO THOUSAND EIGHT SCHOOL YEAR, THE ACTUAL STUDENT ENROLL-
MENT FOR THE TWO THOUSAND EIGHT--TWO THOUSAND NINE SCHOOL YEAR, AND THE
PROJECTED STUDENT ENROLLMENT FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN
SCHOOL YEAR FOR EACH SCHOOL BY GRADE LEVEL;
(D) THE ACTUAL AVERAGE CLASS SIZES FOR THE TWO THOUSAND SIX--TWO THOU-
SAND SEVEN SCHOOL YEAR, THE ACTUAL AVERAGE CLASS SIZES FOR THE TWO THOU-
SAND SEVEN--TWO THOUSAND EIGHT SCHOOL YEAR, THE ACTUAL AVERAGE CLASS
SIZES FOR THE TWO THOUSAND EIGHT--TWO THOUSAND NINE SCHOOL YEAR, AND THE
S. 57--B 7 A. 157--B
PROJECTED AVERAGE CLASS SIZES FOR THE TWO THOUSAND NINE--TWO THOUSAND
TEN SCHOOL YEAR FOR EACH SCHOOL BY GRADE LEVEL; AND
(E) THE SCHOOLS THAT HAVE MADE INSUFFICIENT PROGRESS TOWARD ACHIEVING
THE CLASS SIZE REDUCTION GOALS OUTLINED IN THE APPROVED FIVE YEAR CLASS
SIZE REDUCTION PLAN PURSUANT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH AND
A DETAILED DESCRIPTION OF THE ACTIONS THAT WILL BE TAKEN TO REDUCE CLASS
SIZES IN SUCH SCHOOLS.
SUCH REPORT SHALL BE SUBMITTED TO THE COMMISSIONER ON OR BEFORE NOVEM-
BER SEVENTEENTH, TWO THOUSAND NINE AND SHALL BE MADE AVAILABLE TO THE
PUBLIC BY SUCH DATE.
S 4. Subdivision 1 of section 273-a of the education law, as amended
by section 4 of part B of chapter 57 of the laws of 2007, is amended to
read as follows:
1. State aid shall be provided for up to fifty percent of the total
project approved costs, excluding feasibility studies, plans or similar
activities, for projects for the acquisition, construction, renovation
or rehabilitation, including leasehold improvements, of buildings of
public libraries and library systems chartered by the regents of the
state of New York or established by act of the legislature subject to
the limitations provided in subdivision four of this section and upon
approval by the commissioner. [For purposes of this subdivision, an
amount of eight hundred thousand dollars shall be available for each
calendar year] PROVIDED HOWEVER THAT THE STATE LIABILITY FOR AID PAID
PURSUANT TO THIS SECTION SHALL BE LIMITED TO FUNDS APPROPRIATED FOR SUCH
PURPOSE. Aid shall be provided on approved expenses incurred during the
period commencing July first and ending June thirtieth for up to three
years, or until the project is completed, whichever occurs first. Fifty
percent of such aid shall be payable to each system or library upon
approval of the application. Forty percent of such aid shall be payable
in the next state fiscal year. The remaining ten percent shall be paya-
ble upon project completion.
S 4-a. Subdivision 12 of section 273 of the education law, as amended
by section 1 of part B of chapter 57 of the laws of 2008, is amended to
read as follows:
12. The commissioner is hereby authorized to expend in state fiscal
year two thousand six--two thousand seven three million dollars and in
state fiscal year two thousand seven--two thousand eight eight million
dollars and in state fiscal year two thousand eight--two thousand nine
seven million nine hundred forty thousand dollars AND IN STATE FISCAL
YEAR TWO THOUSAND NINE--TWO THOUSAND TEN EIGHT MILLION DOLLARS SUBJECT
TO AN APPROPRIATION for formula grants to public library systems, refer-
ence and research library resources systems, and school library systems
operating under an approved plan of service. Such formula grants shall
be provided for the period commencing July first and ending on June
thirtieth next following. Such formula grants will be distributed in the
following manner:
a. Each public library system established pursuant to sections two
hundred fifty-five and two hundred seventy-two of this part and operat-
ing under a plan approved by the commissioner is entitled to receive
[fifteen thousand dollars and an amount equal to four percent of the
amount of state aid received by such system in two thousand six--two
thousand seven and thirty-nine thousand dollars and an amount equal to
ten and ninety-four hundredths percent of the amount of state aid
received by such system in two thousand seven--two thousand eight and
thirty-eight thousand seven hundred eight dollars and an amount equal to
ten and ninety-four hundredths percent of the amount of state aid
S. 57--B 8 A. 157--B
received by such system in two thousand eight--two thousand nine under
paragraphs a, c, d, e and n of subdivision one of this section] THIRTY-
NINE THOUSAND DOLLARS AND AN AMOUNT EQUAL TO TEN AND NINETY-FOUR
HUNDREDTHS PERCENT OF THE AMOUNT OF STATE AID RECEIVED FOR THE CURRENT
YEAR BY SUCH SYSTEM UNDER PARAGRAPHS A, C, D, E AND N OF SUBDIVISION ONE
OF THIS SECTION FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN STATE FISCAL
YEAR;
b. Each reference and research library resources system established
pursuant to section two hundred seventy-two of this part and operating
under a plan approved by the commissioner is entitled to receive
[fifteen thousand dollars and an amount equal to four percent of the
amount of state aid received by such system in two thousand six--two
thousand seven and thirty-nine thousand dollars and an amount equal to
ten and ninety-four hundredths percent of the amount of state aid
received by such system in two thousand seven--two thousand eight and
thirty-eight thousand seven hundred eight dollars and an amount equal to
ten and ninety-four hundredths percent of the amount of state aid
received by such system in two thousand eight--two thousand nine under
paragraph a of subdivision four of this section] THIRTY-NINE THOUSAND
DOLLARS AND AN AMOUNT EQUAL TO TEN AND NINETY-FOUR HUNDREDTHS PERCENT OF
THE AMOUNT OF STATE AID RECEIVED FOR THE CURRENT YEAR UNDER PARAGRAPH A
OF SUBDIVISION FOUR OF THIS SECTION FOR THE TWO THOUSAND NINE--TWO THOU-
SAND TEN STATE FISCAL YEAR; and
c. Each school library system established pursuant to section two
hundred eighty-two of this part and operating under a plan approved by
the commissioner is entitled to receive [fifteen thousand dollars and an
amount equal to a four percent increase over the amount of state aid
received by such system in two thousand six--two thousand seven and
thirty-nine thousand dollars and an amount equal to ten and ninety-four
hundredths percent of the amount of state aid received by such system in
two thousand seven--two thousand eight and thirty-eight thousand seven
hundred eight dollars and an amount equal to ten and ninety-four
hundredths percent of the amount of state aid received by such system in
two thousand eight--two thousand nine under paragraphs a, b, c, d, e and
f of subdivision one of section two hundred eighty-four of this part]
THIRTY-NINE THOUSAND DOLLARS AND AN AMOUNT EQUAL TO TEN AND NINETY-FOUR
HUNDREDTHS PERCENT OF THE AMOUNT OF STATE AID RECEIVED FOR THE CURRENT
YEAR BY SUCH SYSTEM UNDER PARAGRAPHS A, B, C, D, E AND F OF SUBDIVISION
ONE OF SECTION TWO HUNDRED EIGHTY-FOUR OF THIS PART FOR THE TWO THOUSAND
NINE--TWO THOUSAND TEN STATE FISCAL YEAR.
S 5. Intentionally omitted.
S 6. Subdivision 2 of section 751 of the education law, as added by
chapter 53 of the laws of 1984, is amended to read as follows:
2. A software program, for the purposes of this article shall mean (A)
a computer program which a pupil is required to use as a learning aid in
a particular class in the school the pupil legally attends, OR (B) FOR
EXPENSES INCURRED AFTER JULY FIRST, TWO THOUSAND NINE, ANY CONTENT-BASED
INSTRUCTIONAL MATERIALS IN AN ELECTRONIC FORMAT THAT ARE ALIGNED WITH
STATE STANDARDS WHICH ARE ACCESSED OR DELIVERED THROUGH THE INTERNET
BASED ON A SUBSCRIPTION MODEL. SUCH ELECTRONIC FORMAT MATERIALS MAY
INCLUDE A VARIETY OF MEDIA ASSETS AND LEARNING TOOLS, INCLUDING VIDEO,
AUDIO, IMAGES, TEACHER GUIDES, AND STUDENT ACCESS CAPABILITIES AS SUCH
TERMS ARE DEFINED IN THE REGULATIONS OF THE COMMISSIONER.
S 7. Intentionally omitted.
S 8. Intentionally omitted.
S 9. Intentionally omitted.
S. 57--B 9 A. 157--B
S 10. Subparagraph 4 of paragraph d of subdivision 5 of section 3202
of the education law, as amended by section 3 of part A-1 of chapter 58
of the laws of 2006, is amended to read as follows:
(4) The education department shall reimburse the school district in
which such intermediate care facility is located for the full cost of
all [nonfederally reimbursable] services, which shall, notwithstanding
any inconsistent provision of law, include transportation services
provided pursuant to a contract authorized by this paragraph. PROVIDED,
HOWEVER, THAT NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE
CONTRARY, THAT NO REIMBURSEMENT SHALL BE PAYABLE PURSUANT TO THIS
SUBPARAGRAPH FOR DUE PROCESS COSTS INCURRED ON OR AFTER JULY FIRST, TWO
THOUSAND NINE. Such reimbursement shall be for the period from September
first through June thirtieth, and state reimbursement for July and
August programs shall be in accordance with subdivision one of section
forty-four hundred eight of this chapter. The provisions of subdivision
two of such section forty-four hundred eight shall apply to all July and
August programs provided pursuant to this section.
S 11. Intentionally omitted.
S 12. Paragraph (a) of subdivision 1 of section 2856 of the education
law, as amended by chapter 378 of the laws of 2007, is amended to read
as follows:
(a) The enrollment of students attending charter schools shall be
included in the enrollment, attendance, membership and, if applicable,
count of students with disabilities of the school district in which the
pupil resides. The charter school shall report all such data to the
school districts of residence in a timely manner. Each school district
shall report such enrollment, attendance and count of students with
disabilities to the department. The school district of residence shall
pay directly to the charter school for each student enrolled in the
charter school who resides in the school district the charter school
basic tuition, which shall be an amount equal to one hundred percent of
the amount calculated pursuant to paragraph f of subdivision one of
section thirty-six hundred two of this chapter for the school district
for the year prior to the base year increased by the percentage change
in the state total approved operating expense calculated pursuant to
paragraph t of subdivision one of section thirty-six hundred two of this
chapter from two years prior to the base year to the base year;
PROVIDED, HOWEVER, THAT FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN
SCHOOL YEAR, THE CHARTER SCHOOL BASIC TUITION SHALL BE THE AMOUNT PAYA-
BLE BY SUCH DISTRICT AS CHARTER SCHOOL BASIC TUITION FOR THE TWO THOU-
SAND EIGHT--TWO THOUSAND NINE SCHOOL YEAR.
S 13. The opening paragraph, subparagraph 1 of paragraph a and para-
graphs b and b-1 of subdivision 4 of section 3602 of the education law,
as amended by section 14 of part B of chapter 57 of the laws of 2008,
are amended to read as follows:
In addition to any other apportionment pursuant to this chapter, a
school district, other than a special act school district as defined in
subdivision eight of section four thousand one of this chapter, shall be
eligible for total foundation aid equal to the product of total aidable
foundation pupil units multiplied by the district's selected foundation
aid, which shall be the greater of five hundred dollars ($500) or foun-
dation formula aid, provided, however that for the two thousand seven--
two thousand eight through [two thousand nine--two thousand ten] TWO
THOUSAND EIGHT--TWO THOUSAND NINE AND TWO THOUSAND ELEVEN--TWO THOUSAND
TWELVE THROUGH TWO THOUSAND TWELVE--TWO THOUSAND THIRTEEN school years,
no school district shall receive total foundation aid in excess of the
S. 57--B 10 A. 157--B
sum of the total foundation aid base for aid payable in the two thousand
seven--two thousand eight school year computed pursuant to subparagraph
(i) of paragraph j of subdivision one of this section, plus the phase-in
foundation increase computed pursuant to paragraph b of this subdivi-
sion, and provided further that total foundation aid shall not be less
than the product of the total foundation aid base computed pursuant to
paragraph j of subdivision one of this section and one hundred three
percent, nor more than the product of such total foundation aid base and
one hundred fifteen percent, AND PROVIDED FURTHER THAT FOR THE TWO THOU-
SAND NINE--TWO THOUSAND TEN AND TWO THOUSAND TEN--TWO THOUSAND ELEVEN
SCHOOL YEARS, EACH SCHOOL DISTRICT SHALL RECEIVE TOTAL FOUNDATION AID IN
AN AMOUNT EQUAL TO THE AMOUNT APPORTIONED TO SUCH SCHOOL DISTRICT FOR
THE TWO THOUSAND EIGHT--TWO THOUSAND NINE SCHOOL YEAR PURSUANT TO THIS
SUBDIVISION. Total aidable foundation pupil units shall be calculated
pursuant to paragraph g of subdivision two of this section. For the
purposes of calculating aid pursuant to this subdivision, aid for the
city school district of the city of New York shall be calculated on a
citywide basis.
(1) The foundation amount shall reflect the average per pupil cost of
general education instruction in successful school districts, as deter-
mined by a statistical analysis of the costs of special education and
general education in successful school districts, provided that the
foundation amount shall be adjusted annually to reflect the percentage
increase in the consumer price index as computed pursuant to section two
thousand twenty-two of this chapter, provided that for the two thousand
eight--two thousand nine school year, for the purpose of such adjust-
ment, the percentage increase in the consumer price index shall be
deemed to be two and nine-tenths percent (0.029), and provided further
that the foundation amount for the two thousand seven--two thousand
eight school year shall be five thousand two hundred fifty-eight
dollars, and provided further that for the two thousand seven--two thou-
sand eight through [two thousand nine--two thousand ten] TWO THOUSAND
TWELVE--TWO THOUSAND THIRTEEN school years, such foundation amount shall
be further adjusted by the phase-in foundation percent established
pursuant to paragraph b of this subdivision.
b. Phase-in foundation increase. (1) The phase-in foundation increase
shall equal the product of the phase-in foundation increase factor
multiplied by the greater of (i) the positive difference, if any, of (A)
the product of the total aidable foundation pupil units multiplied by
the district's selected foundation aid less (B) the total foundation aid
base for aid payable in the two thousand seven--two thousand eight
school year computed pursuant to subparagraph (i) of paragraph j of
subdivision one of this section or (ii) the product of the phase-in
due-minimum percent multiplied by the total foundation aid base for aid
payable in the two thousand seven--two thousand eight school year
computed pursuant to subparagraph (i) of paragraph j of subdivision one
of this section.
(2) For the two thousand seven--two thousand eight school year, the
phase-in foundation percent shall equal one hundred seven and sixty-
eight hundredths percent (1.0768), the phase-in foundation increase
factor shall equal twenty percent (0.20), and the phase-in due-minimum
percent shall equal twelve and fifty-five hundredths percent (0.1255);
for the two thousand eight--two thousand nine school year, the phase-
in foundation percent shall equal one hundred five and twenty-six
hundredths percent [(] (1.0526), the phase-in foundation increase factor
shall equal thirty-seven and one-half percent (0.375), and the phase-in
S. 57--B 11 A. 157--B
due-minimum percent shall equal twelve and fifty-five hundredths percent
(0.1255);
for the two thousand nine--two thousand ten school year, the phase-in
foundation percent shall equal one hundred two and five tenths percent
(1.025), the phase-in foundation increase factor shall equal [sixty-
five] THIRTY-SEVEN AND ONE-HALF percent [(0.65)] (0.375), and the phase-
in due-minimum percent shall equal twelve and fifty-five hundredths
percent (0.1255)
FOR THE TWO THOUSAND TEN--TWO THOUSAND ELEVEN SCHOOL YEAR, THE PHASE-
IN FOUNDATION PERCENT SHALL EQUAL ONE HUNDRED SEVEN AND SIXTY-EIGHT
HUNDREDTHS PERCENT (1.0768), THE PHASE-IN FOUNDATION INCREASE FACTOR
SHALL EQUAL THIRTY-SEVEN AND ONE-HALF PERCENT (0.375), AND THE PHASE-IN
DUE-MINIMUM PERCENT SHALL EQUAL TWELVE AND FIFTY-FIVE HUNDREDTHS PERCENT
(0.1255);
FOR THE TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE SCHOOL YEAR, THE
PHASE-IN FOUNDATION PERCENT SHALL EQUAL ONE HUNDRED FIVE AND SIX
HUNDREDTHS PERCENT (1.0506), THE PHASE-IN FOUNDATION INCREASE FACTOR
SHALL EQUAL FIFTY-THREE AND ONE-TENTH PERCENT (0.531), AND THE PHASE-IN
DUE-MINIMUM PERCENT SHALL EQUAL TWELVE AND FIFTY-FIVE HUNDREDTHS PERCENT
(0.1255); AND
FOR THE TWO THOUSAND TWELVE--TWO THOUSAND THIRTEEN SCHOOL YEAR, THE
PHASE-IN FOUNDATION PERCENT SHALL EQUAL ONE HUNDRED TWO AND FIVE
HUNDREDTHS PERCENT (1.0250), THE PHASE-IN FOUNDATION INCREASE FACTOR
SHALL EQUAL SEVENTY-FIVE PERCENT (0.75), AND THE PHASE-IN DUE-MINIMUM
PERCENT SHALL EQUAL TWELVE AND FIFTY-FIVE HUNDREDTHS PERCENT (0.1255).
b-1. Notwithstanding any other provision of law to the contrary, for
the two thousand seven--two thousand eight through [two thousand ten--
two thousand eleven] TWO THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN school
years, the additional amount payable to each school district pursuant to
this subdivision in the current year as total foundation aid, after
deducting the total foundation aid base, shall be deemed a state grant
in aid identified by the commissioner for general use for purposes of
sections seventeen hundred eighteen and two thousand twenty-three of
this chapter.
S 14. The closing paragraph of subdivision 5-a of section 3602 of the
education law, as added by section 15-a of part B of chapter 57 of the
laws of 2008, is amended to read as follows:
For the two thousand eight--two thousand nine school year, each school
district shall be entitled to an apportionment equal to the product of
fifteen percent and the additional apportionment computed pursuant to
this subdivision for the two thousand seven--two thousand eight school
year. FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN AND TWO THOUSAND TEN-
-TWO THOUSAND ELEVEN SCHOOL YEARS, EACH SCHOOL DISTRICT SHALL BE ENTI-
TLED TO AN APPORTIONMENT EQUAL TO THE AMOUNT SET FORTH FOR SUCH SCHOOL
DISTRICT AS "SUPPLEMENTAL PUB EXCESS COST" UNDER THE HEADING "2008-09
BASE YEAR AIDS" IN THE SCHOOL AID COMPUTER LISTING PRODUCED BY THE
COMMISSIONER IN SUPPORT OF THE BUDGET FOR THE TWO THOUSAND NINE--TWO
THOUSAND TEN SCHOOL YEAR AND ENTITLED "SA0910".
S 15. Subclause (ii) of clause b of subparagraph 2 of paragraph e of
subdivision 6 of section 3602 of the education law, as amended by
section 16 of part B of chapter 57 of the laws of 2008, is amended to
read as follows:
(ii) For any assumed unpaid principal or the equivalent amount in the
case of a lease-purchase agreement or its equivalent, remaining as of
the first day of July, two thousand two pursuant to subparagraph one of
this paragraph, the commissioner shall establish a new assumed amorti-
S. 57--B 12 A. 157--B
zation commencing on such date for the unexpired term of the original
assumed amortization as of such date. Such assumed amortization shall
provide for equal semiannual payments of principal and interest based on
the interest rate applied to the original amortization as established by
the commissioner pursuant to subparagraph one of this paragraph.
Provided, however, that, notwithstanding any provision of law to the
contrary, for aid payable in the two thousand nine--two thousand ten
school year and thereafter, the total [of] APPORTIONMENT FOR such
current year approved expenditures for debt service shall not exceed the
ESTIMATED APPORTIONMENT AS COMPUTED BASED ON THE estimated current year
approved expenditures for debt service on file with the commissioner as
of the date upon which an electronic data file was created for the
purposes of compliance with paragraph b of subdivision twenty-one of
section three hundred five of this chapter on November fifteenth of the
base year, and the positive remainder, if any, of such [debt service or
lease-purchase or other annual payments under a lease-purchase agreement
or an equivalent agreement that would be incurred during the current
year based on an assumed amortization to be established by the commis-
sioner pursuant to this subparagraph of the approved project costs to be
financed] APPORTIONMENT less such estimated [current year approved
expenditures for debt service on file with the commissioner as of the
date upon which an electronic data file was created for the purposes of
compliance with paragraph b of subdivision twenty-one of section three
hundred five of this chapter on November fifteenth of the base year]
APPORTIONMENT shall not be AN APPORTIONMENT PAYABLE IN THE current year
[approved expenditures for debt service], but shall be deemed to be AN
APPORTIONMENT PAYABLE FOR debt service on new bonds and capital notes
aidable in July following the current year as defined in clause (b) of
subparagraph one of paragraph f of this subdivision. Such estimate shall
be done in consultation with the commissioner.
S 16. Intentionally omitted.
S 17. Intentionally omitted.
S 18. Subdivision 12 of section 3602 of the education law is amended
by adding a new closing paragraph to read as follows:
FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN AND TWO THOUSAND TEN--TWO
THOUSAND ELEVEN SCHOOL YEARS, EACH SCHOOL DISTRICT SHALL BE ENTITLED TO
AN APPORTIONMENT EQUAL TO THE AMOUNT SET FORTH FOR SUCH SCHOOL DISTRICT
AS "EDUCATION GRANTS, ACADEMIC EN" UNDER THE HEADING "2008-09 BASE YEAR
AIDS" IN THE SCHOOL AID COMPUTER LISTING PRODUCED BY THE COMMISSIONER IN
SUPPORT OF THE BUDGET FOR THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL
YEAR AND ENTITLED "SA0910", AND SUCH APPORTIONMENT SHALL BE DEEMED TO
SATISFY THE STATE OBLIGATION TO PROVIDE AN APPORTIONMENT PURSUANT TO
SUBDIVISION EIGHT OF SECTION THIRTY-SIX HUNDRED FORTY-ONE OF THIS ARTI-
CLE.
S 19. The opening paragraph of subdivision 16 of section 3602 of the
education law, as amended by section 18 of part B of chapter 57 of the
laws of 2008, is amended to read as follows:
Each school district shall be eligible to receive a high tax aid
apportionment in the two thousand eight--two thousand nine school year,
which shall equal the greater of (i) the sum of the tier 1 high tax aid
apportionment, the tier 2 high tax aid apportionment and the tier 3 high
tax aid apportionment or (ii) the product of the apportionment received
by the school district pursuant to this subdivision in the two thousand
seven--two thousand eight school year, multiplied by the due-minimum
factor, which shall equal, for districts with an alternate pupil wealth
ratio computed pursuant to paragraph b of subdivision three of this
S. 57--B 13 A. 157--B
section that is less than two, seventy percent (0.70), and for all other
districts, fifty percent (0.50). EACH SCHOOL DISTRICT SHALL BE ELIGIBLE
TO RECEIVE A HIGH TAX AID APPORTIONMENT IN THE TWO THOUSAND NINE--TWO
THOUSAND TEN AND TWO THOUSAND TEN--TWO THOUSAND ELEVEN SCHOOL YEARS IN
THE AMOUNT SET FORTH FOR SUCH SCHOOL DISTRICT AS "HIGH TAX AID" UNDER
THE HEADING "2008-09 BASE YEAR AIDS" IN THE SCHOOL AID COMPUTER LISTING
PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE BUDGET FOR THE TWO THOU-
SAND NINE--TWO THOUSAND TEN SCHOOL YEAR AND ENTITLED "SA0910".
S 20. Intentionally omitted.
S 21. The opening paragraph of paragraph b of subdivision 10 of
section 3602-e of the education law, as amended by section 22 of part B
of chapter 57 of the laws of 2008, is amended to read as follows:
Notwithstanding any provision of law to the contrary, for aid payable
in the two thousand eight--two thousand nine school year, the grant to
each eligible school district for universal prekindergarten aid shall be
computed pursuant to this subdivision, AND FOR THE TWO THOUSAND
NINE--TWO THOUSAND TEN AND TWO THOUSAND TEN--TWO THOUSAND ELEVEN SCHOOL
YEARS, EACH SCHOOL DISTRICT SHALL BE ELIGIBLE FOR A MAXIMUM GRANT EQUAL
TO THE AMOUNT COMPUTED FOR SUCH SCHOOL DISTRICT FOR THE BASE YEAR IN THE
ELECTRONIC DATA FILE PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE TWO
THOUSAND NINE--TWO THOUSAND TEN EDUCATION, LABOR AND FAMILY ASSISTANCE
BUDGET, PROVIDED, HOWEVER, THAT IN THE CASE OF A DISTRICT IMPLEMENTING
PROGRAMS FOR THE FIRST TIME OR IMPLEMENTING EXPANSION PROGRAMS IN THE
TWO THOUSAND EIGHT--TWO THOUSAND NINE SCHOOL YEAR WHERE SUCH PROGRAMS
OPERATE FOR A MINIMUM OF NINETY DAYS IN ANY ONE SCHOOL YEAR AS PROVIDED
IN SECTION 151-1.4 OF THE REGULATIONS OF THE COMMISSIONER, SUCH SCHOOL
DISTRICT SHALL BE ELIGIBLE FOR A MAXIMUM GRANT EQUAL TO THE AMOUNT
COMPUTED PURSUANT TO PARAGRAPH A OF SUBDIVISION NINE OF THIS SECTION IN
THE TWO THOUSAND EIGHT--TWO THOUSAND NINE SCHOOL YEAR, AND PROVIDED
FURTHER THAT THE MAXIMUM GRANT SHALL NOT EXCEED THE TOTAL ACTUAL GRANT
EXPENDITURES INCURRED BY THE SCHOOL DISTRICT IN THE CURRENT SCHOOL YEAR
AS APPROVED BY THE COMMISSIONER.
S 22. The opening paragraph of section 3609-a of the education law,
as amended by section 25 of part B of chapter 57 of the laws of 2008, is
amended to read as follows:
For aid payable in the two thousand seven--two thousand eight school
year and thereafter, "moneys apportioned" shall mean the lesser of (i)
the sum of one hundred percent of the respective amount set forth for
each school district as payable pursuant to this section in the school
aid computer listing for the current year produced by the commissioner
in support of the budget which includes the appropriation for the gener-
al support for public schools for the prescribed payments and individ-
ualized payments due prior to April first for the current year plus the
apportionment payable during the current school year pursuant to subdi-
vision six-a and subdivision fifteen of section thirty-six hundred two
of this part minus any reductions to current year aids pursuant to
subdivision seven of section thirty-six hundred four of this part or any
deduction from apportionment payable pursuant to this chapter for
collection of a school district basic contribution as defined in subdi-
vision eight of section forty-four hundred one of this chapter, less any
grants provided pursuant to subparagraph two-a of paragraph b of subdi-
vision four of section ninety-two-c of the state finance law, less any
grants provided pursuant to subdivision twelve of section thirty-six
hundred forty-one of this article, or (ii) the apportionment calculated
by the commissioner based on data on file at the time the payment is
processed; provided however, that for the purposes of any payments made
S. 57--B 14 A. 157--B
pursuant to this section prior to the first business day of June of the
current year, moneys apportioned shall not include any aids payable
pursuant to subdivisions six and fourteen, if applicable, of section
thirty-six hundred two of this part as current year aid for debt service
on bond anticipation notes and/or bonds first issued in the current year
or any aids payable for full-day kindergarten for the current year
pursuant to subdivision nine of section thirty-six hundred two of this
part. The definitions of "base year" and "current year" as set forth in
subdivision one of section thirty-six hundred two of this part shall
apply to this section. For aid payable in the [two thousand eight--two
thousand nine] TWO THOUSAND NINE--TWO THOUSAND TEN school year, refer-
ence to such "school aid computer listing for the current year" shall
mean the printouts entitled ["SA0809"] "SA0910".
S 23. Subdivision 1 of section 3609-a of the education law is amended
by adding a new paragraph c to read as follows:
C. DEFICIT REDUCTION ASSESSMENT FOR TWO THOUSAND NINE--TWO THOUSAND
TEN. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE COMMISSIONER SHALL
REDUCE PAYMENTS DUE TO EACH DISTRICT PURSUANT TO THIS SECTION BY AN
AMOUNT EQUAL TO THE AMOUNTS SET FORTH FOR EACH SCHOOL DISTRICT AS "DEFI-
CIT REDUCTION ASSESSMENT" IN THE SCHOOL AID COMPUTER LISTING PRODUCED BY
THE COMMISSIONER IN SUPPORT OF THE EXECUTIVE BUDGET REQUEST FOR THE TWO
THOUSAND NINE--TWO THOUSAND TEN SCHOOL YEAR AND ENTITLED "BT112-1", AND
SUCH AMOUNT SHALL BE DEDUCTED FROM MONEYS APPORTIONED FOR THE PURPOSES
OF PAYMENTS MADE PURSUANT TO SECTION THIRTY-SIX HUNDRED NINE-A OF THE
EDUCATION LAW AND PROVIDED FURTHER THAT THE AMOUNT OF SUCH REDUCTION
SHALL BE DEEMED TO HAVE BEEN PAID TO THE DISTRICT PURSUANT TO THIS
SECTION FOR THE SCHOOL YEAR IN WHICH SUCH DEDUCTION IS MADE. THE
COMMISSIONER SHALL PROVIDE A SCHEDULE OF SUCH REDUCTIONS IN PAYMENTS TO
THE STATE COMPTROLLER, THE DIRECTOR OF THE BUDGET, THE CHAIR OF THE
SENATE FINANCE COMMITTEE AND THE CHAIR OF THE ASSEMBLY WAYS AND MEANS
COMMITTEE.
S 24. Deficit Reduction Assessment Restoration. Notwithstanding any
other provision of law to the contrary, apportionments from this section
shall by supported from funds appropriated for such purpose from the
state fiscal stabilization fund-education fund as funded by the American
recovery and reinvestment act of 2009. For the purposes of this section
the term "fiscal year", followed by a reference to a year shall mean the
period from July 1 of the preceding year to June 30 of the calendar year
referenced.
Funds shall be apportioned to each school district in an amount equal
to the difference, if any, of the sum of (1) the absolute value of the
amount set forth for each school district as "DEFICIT REDUCTION ASSESS-
MENT" in the school aid computer listing produced by the commissioner in
support of the executive budget request for the two thousand nine--two
thousand ten school year and entitled "BT112-1", plus (2) the current
year restoration, which shall equal the difference of the amount
provided for the 2009-10 school year through funding formulae pursuant
to sections thirty-six hundred two, seven hundred one, seven hundred
eleven, seven hundred fifty-one, seven hundred fifty-three, nineteen
hundred fifty and forty-four hundred five of the education law as set
forth in the 2009-10 school aid computer listing for the current year as
defined pursuant to section thirty-six hundred nine-a of the education
law, less the amount provided for such school year through such formulae
as set forth in the school aid computer listing produced by the commis-
sioner in support of the executive budget request for the two thousand
nine--two thousand ten school year and entitled "BT112-1", plus (3) an
S. 57--B 15 A. 157--B
amount equal to the base year restoration, which shall equal the differ-
ence of the amount provided for the 2008-09 school year through funding
formulae pursuant to sections thirty-six hundred two, seven hundred one,
seven hundred eleven, seven hundred fifty-one, seven hundred fifty-
three, nineteen hundred fifty and forty-four hundred five of the educa-
tion law as set forth in the 2009-10 school aid computer listing for the
current year as defined pursuant to section thirty-six hundred nine-a of
the education law, less the amount provided for such school year through
such formulae as set forth in the school aid computer listing produced
by the commissioner in support of the executive budget request for the
two thousand nine--two thousand ten school year and entitled "BT112-1".
Notwithstanding any other provision of law to the contrary, an amount
equal to the sum of the current year restoration and the base year
restoration shall be deducted from moneys apportioned for the purposes
of payments made pursuant to section thirty-six hundred nine-a of the
education law in order to ensure that districts are not paid an amount
in excess of that which would otherwise receive through the state's
primary elementary and secondary funding formulae.
Each district shall be eligible, pursuant to applicable Federal rules,
regulations and guidelines, for a payment for the 2009-2010 school year
of up to seventy percent (0.7) of such funds on or after the date on
which the lottery apportionment is made pursuant to subparagraph two of
paragraph a of subdivision one of section thirty-six hundred nine-a of
the education law and up to an additional thirty percent (0.3) of such
funds on or after April first.
S 25. Subparagraph 4 of paragraph b of subdivision 1 of section 3609-a
of the education law, as amended by chapter 474 of the laws of 1996, is
amended to read as follows:
(4) State share of medicaid reimbursements. For the purposes of this
subparagraph, [for payments made in the nineteen hundred ninety-five--
ninety-six school year, there shall be two reporting periods: the first
reporting period shall run from February first, nineteen hundred nine-
ty-five through January thirty-first, nineteen hundred ninety-six, and
the second reporting period shall run from February first, nineteen
hundred ninety-six through April thirtieth, nineteen hundred ninety-six;
thereafter,] the first reporting period shall run from May first of the
base year through January thirty-first of the current year, and the
second reporting period shall run from February first of the current
year through April thirtieth of the current year. Notwithstanding any
inconsistent provisions of law to the contrary, the sustaining advance
payment due any school district pursuant to clause (ii) of subparagraph
three of this paragraph in March shall be reduced by fifty percent of
any federal participation during the first reporting period pursuant to
title XIX of the social security act, in special education programs
provided pursuant to article eighty-nine of this chapter FOR SERVICES
PROVIDED ON OR BEFORE JUNE THIRTIETH, TWO THOUSAND NINE; the June
payment due any school district pursuant to clause (v) of subparagraph
three of this paragraph shall be reduced by fifty percent of any federal
participation during the second reporting period FOR SERVICES PROVIDED
ON OR BEFORE JUNE THIRTIETH, TWO THOUSAND NINE. Not later than ten days
after the end of a reporting period, the commissioner of [social
services] HEALTH, as the authorized fiscal agent of the state education
department, shall certify to the commissioner and the director of the
budget the total amount of such federal moneys paid to a school district
for such services during such reporting period. Following each cycle
payment, the commissioner of [social services] HEALTH shall report to
S. 57--B 16 A. 157--B
the commissioner the aggregate amount of such federal medicaid payments
to each school district. The commissioner shall recoup such amounts
first, to the extent possible, from the specified payment, then by with-
holding any other moneys due the school district and finally by direct
billing to any school district still owing moneys to the state. All
moneys withheld or paid to the state on account of this paragraph shall
be credited by the comptroller to the local assistance account for
general support for public schools.
S 26. Paragraph a of subdivision 1 of section 3609-b of the education
law, as amended by section 41 of part C of chapter 57 of the laws of
2004, is amended to read as follows:
a. Any moneys to be apportioned by the commissioner to school
districts during the school year pursuant to this section FOR SERVICES
PROVIDED ON OR BEFORE JUNE THIRTIETH, TWO THOUSAND NINE shall, in the
first instance, be designated as the state share of moneys due a school
district pursuant to title XIX of the social security act, on account of
school supportive health services provided to students with disabilities
in special education programs pursuant to article eighty-nine of this
chapter and to those pupils who are qualified handicapped persons as
defined in the federal rehabilitation act of nineteen hundred seventy-
three, as amended. Some or all of such state share may be assigned on
behalf of school districts to the department of [social services]
HEALTH, as provided herein; any remaining state share moneys shall be
paid to school districts on the same schedule as the federal share of
such title XIX payments and shall be based on the monthly report of the
commissioner of [social services] HEALTH to the commissioner; and any
remaining moneys to be apportioned to a school district pursuant to this
section shall be paid in accordance with the provisions of subdivision
two of this section. The amount to be assigned to the department of
[social services] HEALTH, as determined by the commissioner of [social
services] HEALTH, for any school district shall not exceed the federal
share of any moneys due such school district pursuant to title XIX.
Moneys designated as state share moneys shall be paid to such school
districts based on the submission and approval of claims related to such
school supportive health services, in the manner provided by law.
S 27. Subdivision 1 of section 3609-b of the education law is amended
by adding a new paragraph a-1 to read as follows:
A-1. ANY MONEYS TO BE APPORTIONED BY THE COMMISSIONER TO SCHOOL
DISTRICTS DURING THE SCHOOL YEAR PURSUANT TO THIS SECTION FOR SERVICES
PROVIDED DURING THE TWO THOUSAND NINE--TWO THOUSAND TEN SCHOOL YEAR AND
THEREAFTER SHALL, IN THE FIRST INSTANCE, BE DESIGNATED AS THE STATE
SHARE OF MONEYS DUE A SCHOOL DISTRICT PURSUANT TO TITLE XIX OF THE
SOCIAL SECURITY ACT, ON ACCOUNT OF SCHOOL SUPPORTIVE HEALTH SERVICES
PROVIDED TO STUDENTS WITH DISABILITIES IN SPECIAL EDUCATION PROGRAMS
PURSUANT TO ARTICLE EIGHTY-NINE OF THIS CHAPTER AND TO THOSE PUPILS WHO
ARE QUALIFIED HANDICAPPED PERSONS AS DEFINED IN THE FEDERAL REHABILI-
TATION ACT OF NINETEEN HUNDRED SEVENTY-THREE, AS AMENDED. SUCH STATE
SHARE SHALL BE ASSIGNED ON BEHALF OF SCHOOL DISTRICTS TO THE DEPARTMENT
OF HEALTH, AS PROVIDED HEREIN; THE AMOUNT DESIGNATED AS SUCH NONFEDERAL
SHARE SHALL BE TRANSFERRED BY THE COMMISSIONER TO THE DEPARTMENT OF
HEALTH BASED ON THE MONTHLY REPORT OF THE COMMISSIONER OF HEALTH TO
THE COMMISSIONER; AND ANY REMAINING MONEYS TO BE APPORTIONED TO A SCHOOL
DISTRICT PURSUANT TO THIS SECTION SHALL BE PAID IN ACCORDANCE WITH THE
PROVISIONS OF SUBDIVISION TWO OF THIS SECTION. THE AMOUNT TO BE
ASSIGNED TO THE DEPARTMENT OF HEALTH, AS DETERMINED BY THE COMMISSIONER
OF HEALTH, FOR ANY SCHOOL DISTRICT SHALL NOT EXCEED THE FEDERAL SHARE OF
S. 57--B 17 A. 157--B
ANY MONEYS DUE SUCH SCHOOL DISTRICT PURSUANT TO TITLE XIX. MONEYS DESIG-
NATED AS STATE SHARE MONEYS SHALL BE PAID TO SUCH SCHOOL DISTRICTS BY
THE DEPARTMENT OF HEALTH BASED ON THE SUBMISSION AND APPROVAL OF CLAIMS
RELATED TO SUCH SCHOOL SUPPORTIVE HEALTH SERVICES, IN THE MANNER
PROVIDED BY LAW.
S 28. Paragraph b of subdivision 2 of section 3612 of the education
law, as amended by section 27 of part B of chapter 57 of the laws of
2008, is amended to read as follows:
b. Such grants shall be awarded to school districts, within the limits
of funds appropriated therefor, through a competitive process that takes
into consideration the magnitude of any shortage of teachers in the
school district, the number of teachers employed in the school district
who hold temporary licenses to teach in the public schools of the state,
the number of provisionally certified teachers, the fiscal capacity and
geographic sparsity of the district, the number of new teachers the
school district intends to hire in the coming school year and the number
of summer in the city student internships proposed by an eligible school
district, if applicable. Grants provided pursuant to this section shall
be used only for the purposes enumerated in this section. Notwithstand-
ing any other provision of law to the contrary, a city school district
in a city having a population of one million or more inhabitants receiv-
ing a grant pursuant to this section may use no more than eighty percent
of such grant funds for any recruitment, retention and certification
costs associated with transitional certification of teacher candidates
for the school years two thousand one--two thousand two through [two
thousand eight--two thousand nine] TWO THOUSAND NINE--TWO THOUSAND TEN.
S 29. Paragraphs c and d of subdivision 5-b of section 2576 of the
education law, as added by section 9 of part B of chapter 57 of the laws
of 2007, are amended to read as follows:
c. Upon the enactment of a city budget, FOR THE TWO THOUSAND NINE--TWO
THOUSAND TEN SCHOOL YEAR BUDGET AND ANNUALLY THEREAFTER, the chief exec-
utive officer of the city, as defined pursuant to subdivision five-a of
section 2.00 of the local finance law, shall annually certify to the
commissioner, in a form prescribed by the commissioner upon approval of
the director of the budget, as to the city amount in such budget, the
city amount in the base year, and that the city amount appropriated in
such budget is in compliance with paragraph b of this subdivision.
d. The school district audit report certified to by an independent
certified public accountant or an independent accountant pursuant to
section twenty-one hundred sixteen-a of this title FOR THE TWO THOUSAND
EIGHT--TWO THOUSAND NINE SCHOOL YEAR BUDGET AND ANNUALLY THEREAFTER
shall include a certification by the accountant, in a form prescribed by
the commissioner upon approval of the director of the budget, as to the
city amount expended in the school year covered by such audit report,
the city amount in the prior school year, and that the city amount
expended in the school year covered by such audit report is in compli-
ance with paragraph b of this subdivision.
S 30. Intentionally omitted.
S 31. Paragraph a of subdivision 3 of section 3641 of the education
law, as added by section 29-a of part B of chapter 57 of the laws of
2008, is amended to read as follows:
a. In addition to apportionments otherwise provided by section thir-
ty-six hundred two of this article, for aid payable in the two thousand
eight--two thousand nine AND TWO THOUSAND NINE--TWO THOUSAND TEN school
[year] YEARS, the amounts specified in paragraphs c and d of this subdi-
vision shall be paid for the purpose of providing additional funding for
S. 57--B 18 A. 157--B
school districts which have experienced a significant financial hardship
caused by an extraordinary change in the taxable property valuation or
extraordinary judgments resulting from tax certiorari proceedings.
S 32. Intentionally omitted.
S 33. Intentionally omitted.
S 34. Subdivision 6 of section 4402 of the education law, as amended
by section 31 of part B of chapter 57 of the laws of 2008, is amended to
read as follows:
6. Notwithstanding any other law, rule or regulation to the contrary,
the board of education of a city school district with a population of
one hundred twenty-five thousand or more inhabitants shall be permitted
to establish maximum class sizes for special classes for certain
students with disabilities in accordance with the provisions of this
subdivision. For the purpose of obtaining relief from any adverse fiscal
impact from under-utilization of special education resources due to low
student attendance in special education classes at the middle and
secondary level as determined by the commissioner, such boards of educa-
tion shall, during the school years nineteen hundred ninety-five--nine-
ty-six through June thirtieth, two thousand [nine] TEN of the [two thou-
sand eight--two thousand nine] TWO THOUSAND NINE--TWO THOUSAND TEN
school year, be authorized to increase class sizes in special classes
containing students with disabilities whose age ranges are equivalent to
those of students in middle and secondary schools as defined by the
commissioner for purposes of this section by up to but not to exceed one
and two tenths times the applicable maximum class size specified in
regulations of the commissioner rounded up to the nearest whole number,
provided that in a city school district having a population of one
million or more, classes that have a maximum class size of fifteen may
be increased by no more than one student and provided that the projected
average class size shall not exceed the maximum specified in the appli-
cable regulation, provided that such authorization shall terminate on
June thirtieth, two thousand. Such authorization shall be granted upon
filing of a notice by such a board of education with the commissioner
stating the board's intention to increase such class sizes and a certif-
ication that the board will conduct a study of attendance problems at
the secondary level and will implement a corrective action plan to
increase the rate of attendance of students in such classes to at least
the rate for students attending regular education classes in secondary
schools of the district. Such corrective action plan shall be submitted
for approval by the commissioner by a date during the school year in
which such board increases class sizes as provided pursuant to this
subdivision to be prescribed by the commissioner. Upon at least thirty
days notice to the board of education, after conclusion of the school
year in which such board increases class sizes as provided pursuant to
this subdivision, the commissioner shall be authorized to terminate such
authorization upon a finding that the board has failed to develop or
implement an approved corrective action plan.
S 35. Intentionally omitted.
S 36. Intentionally omitted.
S 37. Intentionally omitted.
S 38. Where a school district that was required to submit a contract
for excellence for the two thousand eight--two thousand nine school year
but is not required to submit a contract for excellence for the two
thousand nine--two thousand ten school year did not fully expend its two
thousand seven--two thousand eight foundation aid subject to the
contract for excellence restrictions, an amount equal to such unexpended
S. 57--B 19 A. 157--B
funds shall be deducted from moneys apportioned for the purposes of
payments made pursuant to section thirty-six hundred nine-a of the
education law.
S 39. Paragraph a-1 of subdivision 11 of section 3602 of the educa-
tion law, as amended by section 33 of part B of chapter 57 of the laws
of 2008, is amended to read as follows:
a-1. Notwithstanding the provisions of paragraph a of this subdivi-
sion, for aid payable in the school years two thousand--two thousand one
through [two thousand eight--two thousand nine] TWO THOUSAND NINE--TWO
THOUSAND TEN, the commissioner may set aside an amount not to exceed two
million five hundred thousand dollars from the funds appropriated for
purposes of this subdivision for the purpose of serving persons twenty-
one years of age or older who have not been enrolled in any school for
the preceding school year, including persons who have received a high
school diploma or high school equivalency diploma but fail to demon-
strate basic educational competencies as defined in regulation by the
commissioner, when measured by accepted standardized tests, and who
shall be eligible to attend employment preparation education programs
operated pursuant to this subdivision.
S 40. Section 33 of the general municipal law is amended by adding a
new subdivision 3 to read as follows:
3. EXAMINATIONS AND REPORT. IN ADDITION TO THE INSPECTION AND EXAM-
INATION OF CERTAIN ACCOUNTS PURSUANT TO THIS SECTION, THE COMPTROLLER BY
THE END OF THE TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE SCHOOL YEAR,
SHALL ALSO EXAMINE FOR THE MOST RECENT SCHOOL YEAR AS PRACTICABLE, THE
EMPLOYEE BENEFIT ACCRUED LIABILITY RESERVE FUNDS OF SCHOOL DISTRICTS
ESTABLISHED PURSUANT TO SECTION SIX-P OF THIS CHAPTER. SUCH EXAMINATION
SHALL BE FOR THE PURPOSE OF DETERMINING THE AMOUNT OF FUNDING IN THE
RESERVE FUND, THE AMOUNT OF LIABILITIES AGAINST SUCH FUND AND IF THERE
EXIST FUNDS IN THE RESERVE FUND WHICH ARE IN EXCESS OF THE TOTAL LIABIL-
ITIES OF SUCH FUND. THE COMPTROLLER SHALL NOTIFY THE SCHOOL DISTRICT IF
SUCH EXCESS FUNDS EXIST AND THE DOLLAR VALUE OF THE EXCESS FUNDING. THE
COMPTROLLER SHALL ALSO PREPARE A REPORT ON THE SCHOOL DISTRICTS WITH
EXCESS FUNDS IN THEIR EMPLOYEE BENEFIT ACCRUED LIABILITY RESERVE FUND
AND THE AMOUNT OF THE EXCESS FUNDING FOR EACH DISTRICT. SUCH REPORT
SHALL BE SUBMITTED BY JULY FIRST, TWO THOUSAND TWELVE TO THE DIRECTOR OF
THE BUDGET, THE CHAIR OF THE SENATE FINANCE COMMITTEE, THE CHAIR OF THE
ASSEMBLY WAYS AND MEANS COMMITTEE AND THE COMMISSIONER OF EDUCATION.
S 41. Subdivision b of section 2 of chapter 756 of the laws of 1992,
relating to funding a program for work force education conducted by the
consortium for worker education in New York city, as amended by section
36 of part B of chapter 57 of the laws of 2008, is amended to read as
follows:
b. Reimbursement for programs approved in accordance with subdivision
a of this section for the 2006-07 school year shall not exceed 64.7
percent of the lesser of such approvable costs per contact hour or nine
dollars and twenty-five cents per contact hour where a contact hour
represents sixty minutes of instruction services provided to an eligible
adult, reimbursement for the 2007-08 school year shall not exceed 63.3
percent of the lesser of such approvable costs per contact hour or nine
dollars and ninety cents per contact hour where a contact hour repres-
ents sixty minutes of instruction services provided to an eligible
adult, [and] reimbursement for the 2008-09 school year shall not exceed
62.8 percent of the lesser of such approvable costs per contact hour or
ten dollars and sixty-five cents per contact hour where a contact hour
represents sixty minutes of instruction services provided to an eligible
S. 57--B 20 A. 157--B
adult AND REIMBURSEMENT FOR THE 2009-10 SCHOOL YEAR SHALL NOT EXCEED
64.1 PERCENT OF THE LESSER OF SUCH APPROVABLE COSTS PER CONTACT HOUR OR
ELEVEN DOLLARS AND FIFTY CENTS PER CONTACT HOUR WHERE A CONTACT HOUR
REPRESENTS SIXTY MINUTES OF INSTRUCTION SERVICES PROVIDED TO AN ELIGIBLE
ADULT. Notwithstanding any other provision of law to the contrary, for
the 2006-07 school year such contact hours shall not exceed one million
nine hundred twenty-three thousand seventy-six (1,923,076) hours; where-
as for the 2007-08 school year such contact hours shall not exceed one
million eight hundred thirty-seven thousand sixty (1,837,060) hours;
whereas for the 2008-09 school year such contact hours shall not exceed
one million nine hundred forty-six thousand one hundred seven
(1,946,107) hours; WHEREAS FOR THE 2009-10 SCHOOL YEAR SUCH CONTACT
HOURS SHALL NOT EXCEED ONE MILLION SEVEN HUNDRED SIXTY-THREE THOUSAND
NINE HUNDRED SEVEN (1,763,907) HOURS.
NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE APPOR-
TIONMENT CALCULATED FOR THE CITY SCHOOL DISTRICT OF THE CITY OF NEW YORK
PURSUANT TO SUBDIVISION 11 OF SECTION 3602 OF THE EDUCATION LAW SHALL BE
COMPUTED AS IF SUCH CONTACT HOURS PROVIDED BY THE CONSORTIUM FOR WORKER
EDUCATION, NOT TO EXCEED THE CONTACT HOURS SET FORTH HEREIN, WERE ELIGI-
BLE FOR AID IN ACCORDANCE WITH THE PROVISIONS OF SUCH SUBDIVISION 11 OF
SECTION 3602 OF THE EDUCATION LAW.
S 42. Section 4 of chapter 756 of the laws of 1992, relating to fund-
ing a program for work force education conducted by the consortium for
worker education in New York city, is amended by adding a new subdivi-
sion o to read as follows:
O. THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY AFTER THE
COMPLETION OF PAYMENTS FOR THE 2009--2010 SCHOOL YEAR. NOTWITHSTANDING
ANY INCONSISTENT PROVISIONS OF LAW, THE COMMISSIONER OF EDUCATION SHALL
WITHHOLD A PORTION OF EMPLOYMENT PREPARATION EDUCATION AID DUE TO THE
CITY SCHOOL DISTRICT OF THE CITY OF NEW YORK TO SUPPORT A PORTION OF THE
COSTS OF THE WORK FORCE EDUCATION PROGRAM. SUCH MONEYS SHALL BE CREDITED
TO THE ELEMENTARY AND SECONDARY EDUCATION FUND-LOCAL ASSISTANCE ACCOUNT
AND SHALL NOT EXCEED THIRTEEN MILLION DOLLARS ($13,000,000).
S 43. Section 6 of chapter 756 of the laws of 1992, relating to fund-
ing a program for work force education conducted by the consortium for
worker education in New York city, as amended by section 38 of part B of
chapter 57 of the laws of 2008, is amended to read as follows:
S 6. This act shall take effect July 1, 1992, and shall be deemed
repealed on June 30, [2009] 2010.
S 44. Subdivision 1 of section 167 of chapter 169 of the laws of 1994
relating to certain provisions related to the 1994-95 state operations,
aid to localities, capital projects and debt service budgets as amended
by section 39 of part B of chapter 57 of the laws of 2008, is amended to
read as follows:
1. Sections one through seventy of this act shall be deemed to have
been in full force and effect as of April 1, 1994 provided, however,
that sections one, two, twenty-four, twenty-five and twenty-seven
through seventy of this act shall expire and be deemed repealed on March
31, 2000; provided, however, that section twenty of this act shall apply
only to hearings commenced prior to September 1, 1994, and provided
further that section twenty-six of this act shall expire and be deemed
repealed on March 31, 1997; and provided further that sections four
through fourteen, sixteen, and eighteen, nineteen and twenty-one through
twenty-one-a of this act shall expire and be deemed repealed on March
31, 1997; and provided further that sections three, fifteen, seventeen,
S. 57--B 21 A. 157--B
twenty, twenty-two and twenty-three of this act shall expire and be
deemed repealed on March 31, [2010] 2011.
S 45. Subdivisions 22 and 24 of section 140 of chapter 82 of the laws
of 1995, amending the education law and certain other laws relating to
state aid to school districts and the appropriation of funds for the
support of government, as amended by section 40 of part B of chapter 57
of the laws of 2008, are amended to read as follows:
(22) sections one hundred twelve, one hundred thirteen, one hundred
fourteen, one hundred fifteen and one hundred sixteen of this act shall
take effect on July 1, 1995; provided, however, that section one hundred
thirteen of this act shall remain in full force and effect until July 1,
[2009] 2010 at which time it shall be deemed repealed;
(24) sections one hundred eighteen through one hundred thirty of this
act shall be deemed to have been in full force and effect on and after
July 1, 1995; provided further, however, that the amendments made pursu-
ant to section one hundred nineteen of this act shall be deemed to be
repealed on and after July 1, [2009] 2010;
S 46. Section 7 of chapter 472 of the laws of 1998 amending the educa-
tion law relating to the lease of school buses by school districts, as
amended by section 53 of part B of chapter 57 of the laws of 2007, is
amended to read as follows:
S 7. This act shall take effect September 1, 1998, and shall expire
and be deemed repealed September 1, [2009] 2011.
S 47. Subdivision c of section 45 of part B of chapter 57 of the laws
of 2008 amending the education law and other laws relating to special
apportionment for salary expenses, is amended to read as follows:
c. Notwithstanding the provisions of section 3609-a of the education
law, an amount equal to the amount paid to a school district pursuant to
subdivisions a and b of this section shall first be deducted from the
following payments due the school district during the [2008-2009] school
year FOLLOWING THE SCHOOL YEAR IN WHICH APPLICATION WAS MADE, pursuant
to subparagraphs (1), (2), (3), (4) and (5) of paragraph a of subdivi-
sion 1 of section 3609-a of the education law in the following order:
the lottery apportionment payable pursuant to subparagraph (2) of such
paragraph followed by the fixed fall payments payable pursuant to
subparagraph (4) of such paragraph and then followed by the district's
payments to the teachers' retirement system pursuant to subparagraph (1)
of such paragraph, and any remainder to be deducted from the individual-
ized payments due the district pursuant to paragraph b of such subdivi-
sion shall be deducted on a chronological basis starting with the earli-
est payment due the district.
S 48. School bus driver training. In addition to apportionments other-
wise provided by section 3602 of the education law, for aid payable in
the 2009-2010 school year, the commissioner of education shall allocate
school bus driver training grants to school districts and boards of
cooperative education services pursuant to sections 3650-a, 3650-b and
3650-c of the education law, or for contracts directly with not-for-pro-
fit educational organizations for the purposes of this section. Such
payments shall not exceed four hundred thousand dollars ($400,000).
S 49. Support of public libraries. The moneys appropriated for the
support of public libraries by the chapter of the laws of 2009 enacting
the education, labor and family assistance budget shall be apportioned
for 2009--2010 in accordance with the provisions of sections 271, 272,
273, 282, 284, and 285 of the education law as amended by the provisions
of this chapter and the provisions of this section, provided that
library construction aid pursuant to section 273-a of the education law
S. 57--B 22 A. 157--B
shall not be payable from the appropriations for the support of public
libraries and provided further that no library, library system or
program, as defined by the commissioner of education, shall receive
less total system or program aid than it received for the year
2001--2002 except as a result of a reduction adjustment necessary to
conform to the appropriations for support of public libraries.
Notwithstanding any other provision of law to the contrary the moneys
appropriated for the support of public libraries for the year 2009--2010
by a chapter of the laws of 2009 enacting the education, labor and fami-
ly assistance budget shall fulfill the state's obligation to provide
such aid and, pursuant to a plan developed by the commissioner of educa-
tion and approved by the director of the budget, the aid payable to
libraries and library systems pursuant to such appropriations shall be
reduced proportionately to assure that the total amount of aid payable
does not exceed the total appropriations for such purpose.
S 50. Special apportionment for salary expenses. a. Notwithstanding
any other provision of law, upon application to the commissioner of
education, not sooner than the first day of the second full business
week of June, 2010 and not later than the last day of the third full
business week of June, 2010, a school district eligible for an appor-
tionment pursuant to section 3602 of the education law shall be eligible
to receive an apportionment pursuant to this section, for the school
year ending June 30, 2010, for salary expenses incurred between April 1
and June 30, 2010, and such apportionment shall not exceed the deficit
reduction assessment of 1990-91 as determined by the commissioner of
education, pursuant to paragraph f of subdivision 1 of section 3602 of
the education law, as in effect through June 30, 1993, plus 186 percent
of such amount for a city school district in a city with a population in
excess of 1,000,000 inhabitants and plus 209 percent of such amount for
a city school district in a city with a population of more than 195,000
inhabitants and less than 219,000 inhabitants according to the latest
federal census, and shall not exceed such salary expenses. Such applica-
tion shall be made by a school district, after the board of education or
trustees have adopted a resolution to do so and in the case of a city
school district in a city with a population in excess of 125,000 inhab-
itants, with the approval of the mayor of such city.
b. The claim for an apportionment to be paid to a school district
pursuant to subdivision a of this section shall be submitted to the
commissioner of education on a form prescribed for such purpose, and
shall be payable upon determination by such commissioner that the form
has been submitted as prescribed. Such approved amounts shall be payable
on the same day in September of the school year following the year in
which application was made as funds provided pursuant to subparagraph
(4) of paragraph b of subdivision 4 of section 92-c of the state finance
law, on the audit and warrant of the state comptroller on vouchers
certified or approved by the commissioner of education in the manner
prescribed by law from moneys in the state lottery fund and from the
general fund to the extent that the amount paid to a school district
pursuant to this section exceeds the amount, if any, due such school
district pursuant to subparagraph (2) of paragraph a of subdivision 1 of
section 3609-a of the education law in the school year following the
year in which application was made.
c. Notwithstanding the provisions of section 3609-a of the education
law, an amount equal to the amount paid to a school district pursuant to
subdivisions a and b of this section shall first be deducted from the
following payments due the school district during the school year
S. 57--B 23 A. 157--B
following the year in which application was made pursuant to subpara-
graphs (1), (2), (3), (4) and (5) of paragraph a of subdivision 1 of
section 3609-a of the education law in the following order: the lottery
apportionment payable pursuant to subparagraph (2) of such paragraph
followed by the fixed fall payments payable pursuant to subparagraph (4)
of such paragraph and then followed by the district's payments to the
teachers' retirement system pursuant to subparagraph (1) of such para-
graph, and any remainder to be deducted from the individualized payments
due the district pursuant to paragraph b of such subdivision shall be
deducted on a chronological basis starting with the earliest payment due
the district.
S 51. Special apportionment for public pension accruals. a. Notwith-
standing any other provision of law, upon application to the commission-
er of education, not later than June 30, 2010, a school district eligi-
ble for an apportionment pursuant to section 3602 of the education law
shall be eligible to receive an apportionment pursuant to this section,
for the school year ending June 30, 2010, and such apportionment shall
not exceed the additional accruals required to be made by school
districts in the 2004-05 and 2005-06 school years associated with chang-
es for such public pension liabilities. The amount of such additional
accrual shall be certified to the commissioner of education by the pres-
ident of the board of education or the trustees or, in the case of a
city school district in a city with a population in excess of 125,000
inhabitants, the mayor of such city. Such application shall be made by a
school district, after the board of education or trustees have adopted a
resolution to do so and in the case of a city school district in a city
with a population in excess of 125,000 inhabitants, with the approval of
the mayor of such city.
b. The claim for an apportionment to be paid to a school district
pursuant to subdivision a of this section shall be submitted to the
commissioner of education on a form prescribed for such purpose, and
shall be payable upon determination by such commissioner that the form
has been submitted as prescribed. Such approved amounts shall be payable
on the same day in September of the school year following the year in
which application was made as funds provided pursuant to subparagraph
(4) of paragraph b of subdivision 4 of section 92-c of the state finance
law, on the audit and warrant of the state comptroller on vouchers
certified or approved by the commissioner of education in the manner
prescribed by law from moneys in the state lottery fund and from the
general fund to the extent that the amount paid to a school district
pursuant to this section exceeds the amount, if any, due such school
district pursuant to subparagraph (2) of paragraph a of subdivision 1 of
section 3609-a of the education law in the school year following the
year in which application was made.
c. Notwithstanding the provisions of section 3609-a of the education
law, an amount equal to the amount paid to a school district pursuant to
subdivisions a and b of this section shall first be deducted from the
following payments due the school district during the school year
following the year in which application was made pursuant to subpara-
graphs (1), (2), (3), (4) and (5) of paragraph a of subdivision 1 of
section 3609-a of the education law in the following order: the lottery
apportionment payable pursuant to subparagraph (2) of such paragraph
followed by the fixed fall payments payable pursuant to subparagraph (4)
of such paragraph and then followed by the district's payments to the
teachers' retirement system pursuant to subparagraph (1) of such para-
graph, and any remainder to be deducted from the individualized payments
S. 57--B 24 A. 157--B
due the district pursuant to paragraph b of such subdivision shall be
deducted on a chronological basis starting with the earliest payment due
the district.
S 52. a. Notwithstanding any other law, rule or regulation to the
contrary, any moneys appropriated to the state education department may
be suballocated to other state departments or agencies, as needed, to
accomplish the intent of the specific appropriations contained therein.
b. Notwithstanding any other law, rule or regulation to the contrary,
moneys appropriated to the state education department from the general
fund/aid to localities, local assistance account-001, shall be for
payment of financial assistance, as scheduled, net of disallowances,
refunds, reimbursement and credits.
c. Notwithstanding any other law, rule or regulation to the contrary,
all moneys appropriated to the state education department for aid to
localities shall be available for payment of aid heretofore or hereafter
to accrue and may be suballocated to other departments and agencies to
accomplish the intent of the specific appropriations contained therein.
d. Notwithstanding any other law, rule or regulation to the contrary,
moneys appropriated to the state education department for general
support for public schools may be interchanged with any other item of
appropriation for general support for public schools within the general
fund local assistance account elementary, middle, secondary and continu-
ing education program.
S 53. Notwithstanding the provision of any law, rule, or regulation to
the contrary, the city school district of the city of Rochester, upon
the consent of the board of cooperative educational services of the
supervisory district serving its geographic region may purchase from
such board for the 2009-10 school year, as a non-component school
district, services required by article 19 of the education law.
S 54. The amounts specified in this section shall be a setaside from
the state funds which each such district is receiving from the total
foundation aid:
a. for the purpose of the development, maintenance or expansion of
magnet schools or magnet school programs for the two thousand nine--two
thousand ten school year. To the city school district of the city of New
York there shall be paid forty-eight million one hundred seventy-five
thousand dollars ($48,175,000) including five hundred thousand dollars
($500,000) for the Andrew Jackson High School; to the Buffalo city
school district, twenty-one million twenty-five thousand dollars
($21,025,000); to the Rochester city school district, fifteen million
dollars ($15,000,000); to the Syracuse city school district, thirteen
million dollars ($13,000,000); to the Yonkers city school district,
forty-nine million five hundred thousand dollars, ($49,500,000); to the
Newburgh city school district, four million six hundred forty-five thou-
sand dollars ($4,645,000); to the Poughkeepsie city school district, two
million four hundred seventy-five thousand dollars ($2,475,000); to the
Mount Vernon city school district, two million dollars ($2,000,000); to
the New Rochelle city school district, one million four hundred ten
thousand dollars ($1,410,000); to the Schenectady city school district,
one million eight hundred thousand dollars ($1,800,000); to the Port
Chester city school district, one million one hundred fifty thousand
dollars ($1,150,000); to the White Plains city school district, nine
hundred thousand dollars ($900,000); to the Niagara Falls city school
district, six hundred thousand dollars ($600,000); to the Albany city
school district, three million five hundred fifty thousand dollars
($3,550,000); to the Utica city school district, two million dollars
S. 57--B 25 A. 157--B
($2,000,000); to the Beacon city school district, five hundred sixty-six
thousand dollars ($566,000); to the Middletown city school district,
four hundred thousand dollars ($400,000); to the Freeport union free
school district, four hundred thousand dollars ($400,000); to the Green-
burgh central school district, three hundred thousand dollars
($300,000); to the Amsterdam city school district, eight hundred thou-
sand dollars ($800,000); to the Peekskill city school district, two
hundred thousand dollars ($200,000); and to the Hudson city school
district, four hundred thousand dollars ($400,000).
b. notwithstanding the provisions of paragraph a of this subdivision,
a school district receiving a grant pursuant to this subdivision may use
such grant funds for: (i) any instructional or instructional support
costs associated with the operation of a magnet school; or (ii) any
instructional or instructional support costs associated with implementa-
tion of an alternative approach to reduction of racial isolation and/or
enhancement of the instructional program and raising of standards in
elementary and secondary schools of school districts having substantial
concentrations of minority students. The commissioner of education shall
not be authorized to withhold magnet grant funds from a school district
that used such funds in accordance with this paragraph, notwithstanding
any inconsistency with a request for proposals issued by such commis-
sioner.
c. for the purpose of attendance improvement and dropout prevention
for the two thousand nine--two thousand ten school year, for any city
school district in a city having a population of more than one million,
the setaside for attendance improvement and dropout prevention shall
equal the amount set aside in the base year. For the two thousand nine-
-two thousand ten school year, it is further provided that any city
school district in a city having a population of more than one million
shall allocate at least one-third of any increase from base year levels
in funds set aside pursuant to the requirements of this subdivision to
community-based organizations. Any increase required pursuant to this
subdivision to community-based organizations must be in addition to
allocations provided to community-based organizations in the base year.
d. for the purpose of teacher support for the two thousand nine--two
thousand ten school year: to the city school district of the city of New
York, sixty-two million seven hundred seven thousand dollars
($62,707,000); to the Buffalo city school district, one million seven
hundred forty-one thousand dollars ($1,741,000); to the Rochester city
school district, one million seventy-six thousand dollars ($1,076,000);
to the Yonkers city school district, one million one hundred forty-seven
thousand dollars ($1,147,000); and to the Syracuse city school district,
eight hundred nine thousand dollars ($809,000). All funds made available
to a school district pursuant to this subdivision shall be distributed
among teachers including prekindergarten teachers and teachers of adult
vocational and academic subjects in accordance with this subdivision and
shall be in addition to salaries heretofore or hereafter negotiated or
made available; provided, however, that all funds distributed pursuant
to this section for the current year shall be deemed to incorporate all
funds distributed pursuant to former subdivision 27 of section 3602 of
the education law for prior years. In school districts where the teach-
ers are represented by certified or recognized employee organizations,
all salary increases funded pursuant to this section shall be determined
by separate collective negotiations conducted pursuant to the provisions
and procedures of article 14 of the civil service law, notwithstanding
S. 57--B 26 A. 157--B
the existence of a negotiated agreement between a school district and a
certified or recognized employee organization.
S 55. Subdivision 11 of section 94 of part C of chapter 57 of the
laws of 2004, amending the labor law and other laws relating to imple-
mentation of the state fiscal plan for the 2004-2005 state fiscal year,
as amended by section 49-b of part B of chapter 57 of the laws of 2008,
is amended to read as follows:
11. section seventy-one of this act shall expire and be deemed
repealed June 30, [2009] 2010;
S 55-a. Subparagraph 5 of paragraph e of subdivision 6 of section 3602
of the education law is amended by adding a new clause (d) to read as
follows:
(D) NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY,
ANY INTEREST RATE CALCULATED UNDER THIS SUBDIVISION SHALL TAKE INTO
ACCOUNT ANY FEDERAL SUBSIDY PAYMENTS MADE OR TO BE MADE TO THE APPLICA-
BLE ISSUER UNDER THE TERMS OF A FEDERALLY AUTHORIZED DEBT INSTRUMENT
WHICH HAVE THE EFFECT OF REDUCING THE ACTUAL INTEREST COSTS INCURRED BY
SUCH ISSUER OVER THE LIFE OF SUCH CAPITAL DEBT, IRRESPECTIVE OF ANY
FEDERAL GOVERNMENT RIGHT OF SET-OFF.
S 56. Severability. The provisions of this act shall be severable, and
if the application of any clause, sentence, paragraph, subdivision,
section or part of this act to any person or circumstance shall be
adjudged by any court of competent jurisdiction to be invalid, such
judgment shall not necessarily affect, impair or invalidate the applica-
tion of any such clause, sentence, paragraph, subdivision, section or
part of this act or remainder thereof, as the case may be, to any other
person or circumstance, 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 judgment shall have
been rendered.
S 57. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2009; provided,
however, that:
1. Sections six, ten, thirteen, fourteen, eighteen, nineteen, twenty-
one through twenty-seven, twenty-eight, thirty-one, thirty-four, thir-
ty-nine, forty-six, forty-eight, fifty, fifty-one and fifty-four of this
act shall take effect July 1, 2009; provided however, that the amend-
ments to subdivision 6 of section 4402 of the education law made by
section thirty-four of this act shall not affect the repeal of such
subdivision and shall be deemed repealed therewith; provided, further
that the amendments to chapter 756 of the laws of 1992 relating to fund-
ing a program for work force education conducted by the consortium for
worker education in New York city made by sections forty-one and forty-
two of this act shall not affect the repeal of such chapter and shall be
deemed repealed therewith;
2. Section fifteen of this act shall take effect immediately, and
shall be deemed to have been in full force and effect on and after July
1, 2008;
3. The amendments to chapter 756 of the laws of 1992 relating to fund-
ing a program for work force education conducted by the consortium for
worker education in New York city made by section forty-three of this
act shall take effect immediately, and shall be deemed to have been in
full force and effect on and after the effective date of section 85 of
part H of chapter 83 of the laws of 2002;
S. 57--B 27 A. 157--B
4. Section forty-four of this act shall be deemed to have been in full
force and effect on and after the effective date of section 101 of part
A of chapter 436 of the laws of 1997;
5. Section forty-seven of this act shall take effect immediately, and
shall be deemed to have been in full force and effect on and after the
effective date of section forty-five of part B of chapter 57 of the laws
of 2008;
6. Section fifty-two of this act shall take effect immediately, and
shall be deemed to have been in full force and effect on and after April
1, 2009 and shall expire and be deemed repealed March 31, 2010; and
7. Section fifty-five-a of this act shall take effect immediately, and
shall apply to the computation of state building aid on federally
authorized debt instruments issued on or after such effective date; and
8. The amendments to section 2856 of the education law made by section
twelve of this act shall survive the expiration and reversion of such
section as provided in section 27 of chapter 378 of the laws of 2007, as
amended.
PART B
Intentionally omitted.
PART C
Intentionally omitted.
PART D
Intentionally omitted.
PART E
Intentionally omitted.
PART F
Section 1. Subdivision 1 of section 663 of the education law, as
amended by chapter 305 of the laws of 2008, is amended to read as
follows:
1. Income defined. Except as otherwise provided in this section,
"income" shall be the total of the combined net taxable income AND
INCOME FROM PENSIONS OF NEW YORK STATE, LOCAL GOVERNMENTS AND THE FEDER-
AL GOVERNMENT of the applicant, the applicant's spouse, and the appli-
cant's parents as reported in New York state income tax returns for the
calendar year next preceding the beginning of the school year for which
application for assistance is made, except that any amount received by
an applicant as a scholarship at an educational institution or as a
fellowship grant, including the value of contributed services and accom-
modations, shall not be included within the definition of "income" for
the purposes of this article. The term "parent" shall include birth
parents, stepparents, adoptive parents and the spouse of an adoptive
parent. Income, if not a whole dollar amount, shall be assumed to be
equal to the next lowest whole dollar amount. Any change in the status
of an applicant with regard to the persons responsible for the appli-
cant's support occurring after the beginning of any semester shall not
be considered to change the applicant's award for that semester.
S. 57--B 28 A. 157--B
S 2. This act shall take effect July 1, 2009.
PART G
Intentionally omitted.
PART H
Intentionally omitted.
PART I
Intentionally omitted.
PART J
Section 1. Article 14 of the education law is amended by adding a new
Part V to read as follows:
PART V
THE NEW YORK HIGHER EDUCATION LOAN PROGRAM
SECTION 690. DEFINITIONS.
691. POWERS AND DUTIES.
692. EDUCATION LOANS; SPECIAL REQUIREMENTS.
693. REPAYMENT OF LOANS.
694. SALE OF EDUCATION LOANS.
694-A. MISCELLANEOUS.
694-B. REPORTING.
S 690. DEFINITIONS. AS USED IN THIS PART, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS UNLESS OTHERWISE SPECIFIED:
1. "EDUCATION LOAN" SHALL MEAN ANY LOAN THAT IS MADE UNDER THIS
PROGRAM TO FINANCE OR REFINANCE HIGHER EDUCATION EXPENSES AT AN ELIGIBLE
COLLEGE.
2. "ELIGIBLE BORROWER" OR "BORROWER" SHALL MEAN (I) A STUDENT WHO IS A
RESIDENT OF NEW YORK STATE ATTENDING, OR ACCEPTED FOR ENROLLMENT AT, AN
ELIGIBLE COLLEGE, OR (II) THE PARENT, LEGAL GUARDIAN, OR SPONSOR, AS
DEFINED BY THE CORPORATION IN REGULATION, OF A STUDENT ATTENDING, OR
ACCEPTED FOR ENROLLMENT AT, AN ELIGIBLE COLLEGE WHO IS A RESIDENT OF NEW
YORK STATE, AND WHO OBTAINS AN EDUCATION LOAN FROM A LENDING INSTITUTION
TO PAY FOR OR FINANCE HIGHER EDUCATION EXPENSES UNDER THIS PROGRAM.
3. "ELIGIBLE COLLEGE" SHALL MEAN A POST-SECONDARY INSTITUTION, LOCATED
WITHIN NEW YORK STATE, ELIGIBLE FOR FUNDS UNDER TITLE IV OF THE HIGHER
EDUCATION ACT OF NINETEEN HUNDRED SIXTY-FIVE, AS AMENDED, OR SUCCESSOR
STATUTE OFFERING A TWO-YEAR, FOUR-YEAR, GRADUATE OR PROFESSIONAL DEGREE
GRANTING OR CERTIFICATE PROGRAM.
4. "ELIGIBLE CO-SIGNER" SHALL MEAN A PARENT, LEGAL GUARDIAN OR OTHER-
WISE CREDIT WORTHY INDIVIDUAL OVER TWENTY-ONE YEARS OF AGE WHO SATISFIES
APPLICABLE CREDIT CRITERIA APPROVED BY THE CORPORATION AND IS A RESIDENT
OF NEW YORK STATE.
5. "HIGHER EDUCATION EXPENSES" SHALL MEAN THE COST OF ATTENDANCE AT AN
ELIGIBLE COLLEGE AND SHALL INCLUDE TUITION AND FEES, BOOKS, ROOM AND
BOARD, AND OTHER EDUCATIONALLY RELATED EXPENSES, AS DETERMINED BY THE
CORPORATION.
6. "HOLDER" SHALL MEAN, WITH RESPECT TO AN EDUCATION LOAN: (I) A LEND-
ER; (II) A PUBLIC BENEFIT CORPORATION AUTHORIZED TO FINANCE THE PURCHASE
OR MAKING OF EDUCATION LOANS PURSUANT TO THE PUBLIC AUTHORITIES LAW; OR
(III) ANY ASSIGNEE OF SUCH LENDER OR PUBLIC BENEFIT CORPORATION.
S. 57--B 29 A. 157--B
7. "LENDING INSTITUTION" OR "LENDER" SHALL MEAN ANY ENTITY THAT ITSELF
OR THROUGH AN AFFILIATE ORIGINATES EDUCATION LOANS, OTHER THAN AN ENTITY
AUTHORIZED TO FINANCE THE PURCHASE OR MAKING OF EDUCATION LOANS THROUGH
THE ISSUANCE OF BONDS PURSUANT TO THE PUBLIC AUTHORITIES LAW.
8. "PROGRAM" SHALL MEAN THE NEW YORK HIGHER EDUCATION LOAN PROGRAM
ESTABLISHED BY THIS ARTICLE.
9. "STUDENT" SHALL MEAN ANY INDIVIDUAL WHO IS ENROLLED AT LEAST HALF-
TIME, AS DEFINED BY THE COMMISSIONER, IN A TWO YEAR, FOUR YEAR, GRADUATE
OR PROFESSIONAL DEGREE GRANTING OR CERTIFICATE PROGRAM AT AN ELIGIBLE
COLLEGE.
S 691. POWERS AND DUTIES. IN FURTHERANCE OF THE PURPOSES SET FORTH IN
THIS PART, THE CORPORATION SHALL HAVE THE FOLLOWING ADDITIONAL POWERS
AND DUTIES:
1. TO MARKET, ORIGINATE, DISBURSE, SERVICE, COLLECT, ADMINISTER, GUAR-
ANTEE, SECURE, FINANCE, AND PURCHASE EDUCATION LOANS NOT IN DEFAULT
STATUS MADE UNDER THIS PROGRAM OR CONTRACT FOR THESE SERVICES.
2. TO PURCHASE DEFAULTED EDUCATION LOANS MADE UNDER THIS PROGRAM.
3. TO ESTABLISH AND MAINTAIN ONE OR MORE DEFAULT RESERVE FUNDS AND
ACCOUNTS WITHIN SUCH FUNDS, IN ACCORDANCE WITH THE TERMS OF THIS
PROGRAM.
4. TO DEVELOP AND ADMINISTER OR CONTRACT TO ADMINISTER ONE OR MORE
FINANCIAL LITERACY PROGRAMS.
5. TO PROVIDE OR CONTRACT TO PROVIDE DEFAULT AVERSION SERVICES.
6. TO ESTABLISH CRITERIA FOR ELIGIBLE COLLEGES, LENDERS, AND OTHER
ENTITIES SUCH AS, BUT NOT LIMITED TO, SERVICERS, AND TO ENTER INTO
PARTICIPATION AGREEMENTS WITH ANY SUCH ELIGIBLE COLLEGES, LENDERS, AND
OTHER ENTITIES AND ANY ENTITY AUTHORIZED TO FINANCE THE PURCHASE OR
MAKING OF EDUCATION LOANS THROUGH THE ISSUANCE OF BONDS PURSUANT TO THE
PUBLIC AUTHORITIES LAW, AND ANY SUBSEQUENT PURCHASER OF EDUCATION LOANS
MADE UNDER THIS PROGRAM.
7. TO ESTABLISH CRITERIA FOR ALL LENDER UNDERWRITING, EDUCATION LOAN
PURCHASES, SERVICING AND DEFAULT INSURANCE PAYMENTS.
8. TO ESTABLISH CRITERIA FOR THE DISTRIBUTION OF EDUCATION LOANS MADE
UNDER THIS PROGRAM.
9. TO AUDIT LENDERS, SERVICERS, HOLDERS, AND ELIGIBLE COLLEGES FOR
PROGRAM COMPLIANCE.
10. TO ADOPT RULES AND REGULATIONS TO IMPLEMENT THIS PROGRAM.
S 692. EDUCATION LOANS; SPECIAL REQUIREMENTS. IN ANY YEAR IN WHICH
FIXED RATE EDUCATION LOANS ARE TO BE ACQUIRED USING THE PROCEEDS OF
BONDS ISSUED BY THE STATE OF NEW YORK MORTGAGE AGENCY OR OTHER PUBLIC
BENEFIT CORPORATION AUTHORIZED TO ISSUE BONDS FOR THE PURPOSES OF THIS
PROGRAM, PREFERENCE SHALL BE GIVEN TO EDUCATION LOANS MADE TO ELIGIBLE
BORROWERS FOR THE BENEFIT OF STUDENTS WHO DEMONSTRATE FINANCIAL NEED
BASED ON SUCH STUDENT'S FAMILY GROSS INCOME, PURSUANT TO RULES AND REGU-
LATIONS PROMULGATED BY THE CORPORATION AFTER CONSULTATION WITH THE STATE
OF NEW YORK MORTGAGE AGENCY OR OTHER PUBLIC BENEFIT CORPORATION AUTHOR-
IZED TO ISSUE BONDS FOR THE PURPOSES OF THIS PROGRAM. 1. TERMS AND
CONDITIONS. (A) ELIGIBLE BORROWERS SHALL APPLY FOR EDUCATION LOANS
UNDER THIS PROGRAM ON FORMS PRESCRIBED BY THE CORPORATION;
(B) EXCEPT AS MAY BE PROVIDED BY REGULATION, A STUDENT FOR WHOM AN
EDUCATION LOAN IS MADE SHALL BE REQUIRED TO FIRST APPLY FOR AND EXHAUST:
(I) THEIR MAXIMUM ELIGIBILITY OF LOANS UNDER THE FEDERAL FAMILY EDUCA-
TION LOAN PROGRAM (FFELP) AND THE FEDERAL DIRECT STUDENT LOAN PROGRAM
(FDSLP), EXCLUDING PLUS LOANS; (II) ANY OTHER FEDERAL STUDENT AID, OTHER
THAN HEAL LOANS AND OTHER AID PERMITTED BY THE CORPORATION TO BE
EXCLUDED; (III) ANY STATE STUDENT AID; AND (IV) ANY OTHER STUDENT AID AS
S. 57--B 30 A. 157--B
PRESCRIBED BY THE CORPORATION BEFORE BEING ELIGIBLE FOR ANY EDUCATION
LOAN UNDER THIS PROGRAM;
(C) BORROWERS SHALL SUCCESSFULLY COMPLETE A FINANCIAL LITERACY COURSE
AS PRESCRIBED BY THE CORPORATION;
(D) STUDENT BORROWERS MUST APPLY FOR EDUCATION LOANS UNDER THIS
PROGRAM WITH AN ELIGIBLE CO-SIGNER;
(E) A BORROWER, OR CO-SIGNER, WHO IS IN DEFAULT ON AN EDUCATION LOAN
MADE UNDER THIS PROGRAM, THE FEDERAL FAMILY EDUCATION LOAN PROGRAM, THE
WILLIAMS D. FORD PROGRAM, OR HAS FAILED TO COMPLY WITH THE TERMS AND
CONDITIONS OF ANY AWARD UNDER THIS ARTICLE AND HAS FAILED TO SATISFAC-
TORILY CURE SUCH DEFAULT OR NON-COMPLIANCE AS PRESCRIBED BY APPLICABLE
LAW OR REGULATION SHALL BE INELIGIBLE TO RECEIVE A LOAN UNDER THIS
PROGRAM, AND SHALL FURTHER BE INELIGIBLE FOR ANY OTHER STATE STUDENT AID
WHILE IN DEFAULT ON AN EDUCATION LOAN MADE UNDER THIS PROGRAM; AND
(F) PARTICIPATING ELIGIBLE COLLEGES, LENDING INSTITUTIONS, AND OTHER
PARTICIPANTS IN THIS PROGRAM SHALL BE REQUIRED TO ENTER INTO A PARTIC-
IPATION AGREEMENT WITH THE CORPORATION AND COMPLY WITH ALL REPORTING AND
PROCESSING REQUIREMENTS AND PROCEDURES AS ESTABLISHED BY THE CORPO-
RATION. THESE PARTICIPATION AGREEMENTS SHALL CONTAIN SUCH OTHER SPECIF-
IC TERMS AND CONDITIONS OF THE PROGRAM AS SHALL BE DETERMINED BY THE
CORPORATION.
2. CITIZENSHIP. A BORROWER MUST BE (A) A CITIZEN OF THE UNITED STATES,
OR
(B) AN ALIEN LAWFULLY ADMITTED FOR PERMANENT RESIDENCE IN THE UNITED
STATES, OR
(C) AN INDIVIDUAL OF A CLASS OF REFUGEES PAROLED BY THE ATTORNEY
GENERAL OF THE UNITED STATES UNDER HIS OR HER PAROLE AUTHORITY PERTAIN-
ING TO THE ADMISSION OF ALIENS TO THE UNITED STATES.
3. LOAN LIMITS. EDUCATION LOANS MADE UNDER THIS PROGRAM SHALL HAVE
ANNUAL AND CUMULATIVE LOAN LIMITS AS APPROVED FROM TIME TO TIME BY THE
CORPORATION, SUBJECT TO THE APPROVAL OF THE STATE OF NEW YORK MORTGAGE
AGENCY, OR OTHER PUBLIC BENEFIT CORPORATION AUTHORIZED TO ISSUE BONDS
UNDER THE PUBLIC AUTHORITIES LAW FOR PURPOSES OF THIS PROGRAM, WITH
RESPECT TO LOANS THAT ARE EXPECTED TO BE FINANCED BY SUCH ENTITY.
4. INTEREST RATES. THE INTEREST RATE OF LOANS MADE UNDER THIS PROGRAM
SHALL BE ESTABLISHED IN A MANNER THAT SHALL BE APPROVED AT LEAST ANNUAL-
LY BY THE CORPORATION, SUBJECT TO THE APPROVAL OF THE STATE OF NEW YORK
MORTGAGE AGENCY, OR OTHER SUBJECT TO PUBLIC BENEFIT CORPORATION AUTHOR-
IZED TO ISSUE BONDS UNDER THE PUBLIC AUTHORITIES LAW FOR PURPOSES OF
THIS PROGRAM, WITH RESPECT TO LOANS THAT ARE EXPECTED TO BE FINANCED BY
SUCH ENTITY.
5. DEFAULT FEE. A PERCENTAGE OF THE EDUCATION LOAN SHALL BE PAID AS A
DEFAULT FEE, BY OR ON BEHALF OF THE BORROWER OR THE LENDER, IN AN AMOUNT
TO BE ESTABLISHED AT LEAST ANNUALLY BY THE CORPORATION SUBJECT TO THE
APPROVAL OF THE STATE OF NEW YORK MORTGAGE AGENCY, OR OTHER PUBLIC BENE-
FIT CORPORATION AUTHORIZED TO ISSUE BONDS UNDER THE PUBLIC AUTHORITIES
LAW FOR PURPOSES OF THIS PROGRAM, WITH RESPECT TO LOANS THAT ARE
EXPECTED TO BE FINANCED BY SUCH ENTITY. THE DEFAULT FEE ESTABLISHED BY
THE CORPORATION, SUBJECT TO THE APPROVAL OF THE STATE OF NEW YORK MORT-
GAGE AGENCY, OR OTHER PUBLIC BENEFIT CORPORATION AUTHORIZED TO ISSUE
BONDS UNDER THE PUBLIC AUTHORITIES LAW FOR PURPOSES OF THIS PROGRAM,
WITH RESPECT TO EDUCATION LOANS THAT ARE EXPECTED TO BE FINANCED BY SUCH
ENTITY, SHALL BE A PERCENTAGE OF THE PRINCIPAL AMOUNT OF SUCH LOANS, AS
DETERMINED BY THE CORPORATION, THAT, TOGETHER WITH OTHER AMOUNTS ON
DEPOSIT IN THE APPLICABLE DEFAULT RESERVE FUND, SHALL NOT EXCEED AN
AMOUNT SUFFICIENT TO ENSURE THAT THE BALANCE OF SUCH FUNDS SATISFIES THE
S. 57--B 31 A. 157--B
OBLIGATIONS OF SUCH DEFAULT RESERVE FUND AND PERMITS SUCH LOANS TO BE
FINANCED. THIS FEE MAY BE CONSIDERED PART OF THE COST OF ATTENDANCE FOR
THE PURPOSES OF CALCULATING THE LOAN AMOUNT FOR THIS PROGRAM AND SHALL
BE TRANSMITTED TO THE CORPORATION IN ACCORDANCE WITH RULES OR REGU-
LATIONS PROMULGATED BY THE CORPORATION. THE CORPORATION SHALL DEPOSIT
THESE FUNDS INTO A DESIGNATED ACCOUNT WITHIN THE NEW YORK HIGHER EDUCA-
TION LOAN PROGRAM VARIABLE RATE DEFAULT RESERVE FUND, THE NEW YORK HIGH-
ER EDUCATION LOAN PROGRAM FIXED RATE DEFAULT RESERVE FUND, OR THE STATE
OF NEW YORK MORTGAGE AGENCY NEW YORK HIGHER EDUCATION LOAN PROGRAM
DEFAULT RESERVE FUND, AS APPLICABLE.
6. CONSOLIDATION. EDUCATION LOANS MADE PURSUANT TO THIS PROGRAM MAY BE
ELIGIBLE FOR CONSOLIDATION UPON THE TERMS AND CONDITIONS ESTABLISHED BY
THE CORPORATION. ANY PERSON CONSOLIDATING EDUCATION LOANS UNDER THIS
PROGRAM SHALL BE CONSIDERED A BORROWER FOR PURPOSES OF THIS PART.
7. DEFAULT RESERVE FUNDS. (A) GENERAL PROVISIONS. ONE OR MORE DEFAULT
RESERVE FUNDS SHALL BE ESTABLISHED IN THE CUSTODY OF THE COMPTROLLER
PURSUANT TO SECTIONS SEVENTY-EIGHT-A AND SEVENTY-EIGHT-B OF THE STATE
FINANCE LAW. ONE OR MORE DEFAULT RESERVE FUNDS SHALL BE ESTABLISHED IN
THE CUSTODY OF THE STATE OF NEW YORK MORTGAGE AGENCY PURSUANT TO SUBDI-
VISION SIX OF SECTION TWO THOUSAND FOUR HUNDRED FIVE-A OF THE PUBLIC
AUTHORITIES LAW. THESE FUNDS SHALL BE USED BY THE CORPORATION TO PAY
DEFAULT CLAIMS TO PARTICIPATING LENDERS AND HOLDERS OF EDUCATION LOANS
MADE PURSUANT TO THIS PROGRAM.
(B) DEPOSITS. THE CORPORATION SHALL PROMPTLY DEPOSIT OR TRANSFER INTO
THE NEW YORK HIGHER EDUCATION LOAN PROGRAM VARIABLE RATE DEFAULT RESERVE
FUND CREATED BY SECTION SEVENTY-EIGHT-A OF THE STATE FINANCE LAW, THE
NEW YORK HIGHER EDUCATION LOAN PROGRAM FIXED RATE DEFAULT RESERVE FUND
CREATED BY SECTION SEVENTY-EIGHT-B OF THE STATE FINANCE LAW OR THE STATE
OF NEW YORK MORTGAGE AGENCY NEW YORK HIGHER EDUCATION LOAN PROGRAM
DEFAULT RESERVE FUND CREATED BY SUBDIVISION SIX OF SECTION TWO THOUSAND
FOUR HUNDRED FIVE-A OF THE PUBLIC AUTHORITIES LAW, WITH RESPECT TO
EDUCATION LOANS, DESCRIBED IN SUCH PROVISIONS, ANY MONEYS RECEIVED IN
CONNECTION WITH THIS PROGRAM OTHER THAN PAYMENTS OF PRINCIPAL AND INTER-
EST OF EDUCATION LOANS THAT ARE NOT IN DEFAULT STATUS, INCLUDING, BUT
NOT LIMITED TO: (I) DEFAULT FEES; (II) FEES RECEIVED FROM ELIGIBLE
COLLEGES; (III) FUNDS RECEIVED FOR THE REPAYMENT OF DEFAULTED EDUCATION
LOANS, THE UNPAID PRINCIPAL, CAPITALIZED AND UNPAID ACCRUED INTEREST OF
WHICH HAVE BEEN PAID FROM THE FUNDS, INCLUDING WITHOUT LIMITATION ALL
SUCH AMOUNTS RECEIVED THROUGH THE OPERATION OF VOLUNTARY COLLECTION
ACTIVITIES, ADMINISTRATIVE WAGE GARNISHMENT OR CREDIT OF TAX OVERPAY-
MENTS LESS ANY AMOUNTS RECEIVED FOR COLLECTION FEES ASSESSED BY THE
CORPORATION; (IV) CONTRACTUAL PENALTIES AND SUBSIDY FEES; (V) ANY AMOUNT
THAT MAY BE APPROPRIATED TO THE CORPORATION; (VI) ANY AMOUNT RECEIVED BY
THE CORPORATION OR ANY AGENT FROM ANY OTHER SOURCE FOR DEPOSIT THEREIN;
AND (VII) INTEREST AND INVESTMENT INCOME EARNED BY THE FUNDS.
8. LENDER DUE DILIGENCE. PARTICIPATING LENDERS SHALL BE REQUIRED TO
PERFORM ALL DUE DILIGENCE REQUIREMENTS AS PRESCRIBED BY THE CORPORATION
AND INCORPORATED INTO THE PARTICIPATION AGREEMENT AND INTO REGULATIONS
PROMULGATED BY THE CORPORATION.
9. ELIGIBLE COLLEGE REQUIREMENTS. (A) PARTICIPATING ELIGIBLE COLLEGES
SHALL BE REQUIRED TO CERTIFY LOAN ELIGIBILITY UPON FORMS PRESCRIBED BY
THE CORPORATION AND INCORPORATED INTO THE PARTICIPATION AGREEMENT AND
PURSUANT TO REGULATIONS PROMULGATED BY THE CORPORATION.
(B) PARTICIPATING ELIGIBLE COLLEGES SHALL BE REQUIRED TO CONTRIBUTE A
ONE PERCENT FEE PRESCRIBED BY THE CORPORATION, SUBJECT TO THE APPROVAL
OF THE STATE OF NEW YORK MORTGAGE AGENCY, OR OTHER PUBLIC BENEFIT CORPO-
S. 57--B 32 A. 157--B
RATION AUTHORIZED TO ISSUE BONDS UNDER THE PUBLIC AUTHORITIES LAW FOR
PURPOSES OF THIS PROGRAM, WITH RESPECT TO LOANS THAT ARE EXPECTED TO BE
FINANCED BY SUCH ENTITY, BASED UPON THE LOAN DOLLAR VOLUME OR HAVE THE
CONTRIBUTION MADE ON ITS BEHALF, PURSUANT TO THE TERMS OF THE PARTIC-
IPATION AGREEMENT. THIS FEE SHALL BE DEPOSITED INTO A DESIGNATED ACCOUNT
WITHIN THE NEW YORK HIGHER EDUCATION LOAN PROGRAM VARIABLE RATE DEFAULT
RESERVE FUND THE NEW YORK HIGHER EDUCATION LOAN PROGRAM FIXED RATE
DEFAULT RESERVE FUND, OR THE STATE OF NEW YORK MORTGAGE AGENCY NEW YORK
HIGHER EDUCATION LOAN PROGRAM DEFAULT RESERVE FUND, AS DESCRIBED IN
SUBDIVISION SEVEN OF THIS SECTION AS APPLICABLE. THIS FEE, OR ANY OTHER
COLLEGE FEE, SHALL NOT BE ASSESSED TO THE STUDENT OR ELIGIBLE BORROWER
IN CONNECTION WITH THIS PROGRAM.
S 693. REPAYMENT OF LOANS. 1. TERMS OF REPAYMENT. THE TERMS OF REPAY-
MENT OF EDUCATION LOANS MADE UNDER THIS PROGRAM SHALL BE ESTABLISHED IN
RULES AND REGULATIONS PROMULGATED BY THE CORPORATION SUBJECT TO THE
APPROVAL OF THE STATE OF NEW YORK MORTGAGE AGENCY OR OTHER PUBLIC BENE-
FIT CORPORATION AUTHORIZED TO ISSUE BONDS UNDER THE PUBLIC AUTHORITIES
LAW FOR PURPOSES OF THIS PROGRAM WITH RESPECT TO LOANS THAT ARE EXPECTED
TO BE FINANCED BY SUCH ENTITY.
2. GRACE PERIOD. THE TERMS OF ANY GRACE PERIOD FOR EDUCATION LOANS
MADE UNDER THIS PROGRAM SHALL BE ESTABLISHED IN RULES AND REGULATIONS
PROMULGATED BY THE CORPORATION SUBJECT TO THE APPROVAL OF THE STATE OF
NEW YORK MORTGAGE AGENCY OR OTHER PUBLIC BENEFIT CORPORATION AUTHORIZED
TO ISSUE BONDS UNDER THE PUBLIC AUTHORITIES LAW FOR PURPOSES OF THIS
PROGRAM WITH RESPECT TO LOANS THAT ARE EXPECTED TO BE FINANCED BY SUCH
ENTITY. NOTWITHSTANDING, THE GRACE PERIOD ESTABLISHED SHALL BE NO LESS
THAN SIX MONTHS.
3. FORBEARANCE AND DEFERMENTS. EDUCATION LOANS MADE UNDER THIS PROGRAM
SHALL BE ELIGIBLE FOR IN-SCHOOL AND MILITARY DEFERMENTS PURSUANT TO
RULES AND REGULATIONS PROMULGATED BY THE CORPORATION, OR PURSUANT TO
SUCH ADDITIONAL DEFERMENTS AND/OR FORBEARANCE AS OFFERED BY AN ELIGIBLE
LENDER, IN EACH CASE, SUBJECT TO THE APPROVAL OF THE STATE OF NEW YORK
MORTGAGE AGENCY, OR OTHER AUTHORIZED PUBLIC BENEFIT CORPORATION AUTHOR-
IZED TO ISSUE BONDS UNDER THE PUBLIC AUTHORITIES LAW FOR PURPOSES OF
THIS PROGRAM, WITH RESPECT TO LOANS THAT ARE EXPECTED TO BE FINANCED BY
SUCH ENTITY. UPON THE ASSIGNMENT OF A DEFAULTED EDUCATION LOAN MADE
UNDER THIS PROGRAM FOR COLLECTION AS DESCRIBED IN SUBDIVISION FIVE OF
THIS SECTION, THE BORROWER SHALL NO LONGER BE ELIGIBLE FOR ANY FORBEAR-
ANCE OR DEFERMENTS WHILE SUCH LOAN REMAINS IN DEFAULT.
4. DELINQUENCY. A BORROWER SHALL BE CONSIDERED DELINQUENT ON AN EDUCA-
TION LOAN UNDER THIS PROGRAM AFTER THIRTY DAYS OF NON-PAYMENT. THE HOLD-
ER SHALL NOTIFY THE CORPORATION PROMPTLY AFTER THE FIRST DAY OF DELIN-
QUENCY AND THE CORPORATION SHALL UNDERTAKE ACTIONS TO RETURN THE
BORROWER TO REPAYMENT PURSUANT TO RULES AND REGULATIONS ESTABLISHED BY
THE CORPORATION. SUCH ACTIONS SHALL INCLUDE, BUT NOT BE LIMITED TO,
ATTEMPTS AT: (I) LOCATING AND CONTACTING THE BORROWER AND/OR CO-SIGNER,
AS APPLICABLE, REGARDING THE DELINQUENT STATUS OF THEIR LOAN; (II)
EXPLAINING THE ACCOUNT HISTORY AND CLARIFYING ANY DISCREPANCIES; (III)
COUNSELING THE BORROWER AND/OR CO-SIGNER, AS APPLICABLE, REGARDING ALL
AVAILABLE REPAYMENT OPTIONS, INDUCING DEFERMENTS, AND ANY PUBLIC ASSIST-
ANCE AVAILABLE TO THEM; (IV) PROVIDING THE BORROWER AND/OR CO-SIGNER, AS
APPLICABLE, WITH DOCUMENTATION IN CONNECTION WITH THEIR LOAN OR LOANS;
(V) INFORMING THE BORROWER AND/OR CO-SIGNER, AS APPLICABLE, OF THE
CONSEQUENCES OF DEFAULT; AND (VI) ANY OTHER ASSISTANCE THAT WOULD
PREVENT A DEFAULT BY A BORROWER.
S. 57--B 33 A. 157--B
5. DEFAULT. ANY EDUCATION LOAN UNDER THIS PROGRAM THAT IS DELINQUENT
FOR ONE HUNDRED EIGHTY DAYS SHALL BE DEEMED IN DEFAULT. UPON DEFAULT,
THE HOLDER SHALL FILE A CLAIM WITH THE CORPORATION AND, IF APPLICABLE,
THE STATE OF NEW YORK MORTGAGE AGENCY, FOR PAYMENT FROM THE NEW YORK
EDUCATION LOAN PROGRAM VARIABLE RATE DEFAULT RESERVE FUND, THE NEW YORK
EDUCATION LOAN PROGRAM FIXED RATE DEFAULT RESERVE FUND, OR THE STATE OF
NEW YORK MORTGAGE AGENCY NEW YORK EDUCATION LOAN PROGRAM DEFAULT RESERVE
FUND, AS DESCRIBED IN SUBDIVISION SEVEN OF SECTION SIX HUNDRED NINETY
TWO OF THE EDUCATION LAW, AS APPLICABLE, PURSUANT TO REGULATIONS PROMUL-
GATED BY THE CORPORATION. UPON RECEIPT OF A CLAIM, THE CORPORATION SHALL
NOTIFY THE BORROWER THAT THEIR LOAN IS BEING ASSIGNED TO THE CORPORATION
FOR COLLECTION. THE LENDER, OR HOLDER SHALL BE PAID ONE HUNDRED PERCENT
OF THE OUTSTANDING PRINCIPAL, AND OF THE CAPITALIZED AND UNPAID ACCRUED
INTEREST. UPON SUCH PAYMENT, THIS AMOUNT SHALL BE THE PRINCIPAL OWED BY
THE BORROWER.
ALL COLLECTION PAYMENTS RECEIVED BY THE CORPORATION FROM A BORROWER,
OR ON BEHALF OF BORROWERS, IN DEFAULT ON LOANS MADE UNDER THIS PROGRAM,
EXCEPT COLLECTION FEES SHALL BE DEPOSITED INTO A DESIGNATED ACCOUNT
WITHIN THE NEW YORK HIGHER EDUCATION LOAN PROGRAM VARIABLE RATE DEFAULT
RESERVE FUND, NEW YORK HIGHER EDUCATION LOAN PROGRAM FIXED RATE DEFAULT
RESERVE FUND, OR THE STATE OF NEW YORK MORTGAGE AGENCY NEW YORK HIGHER
EDUCATION LOAN PROGRAM DEFAULT RESERVE FUND, AS APPLICABLE.
6. COLLECTION FEE. THE CORPORATION SHALL ASSESS A COLLECTION FEE, IN
AN AMOUNT TO BE DETERMINED BY THE CORPORATION AT LEAST ANNUALLY, ON ALL
DEFAULTED EDUCATION LOANS UNDER THIS PROGRAM. THIS FEE SHALL BE RETAINED
BY THE CORPORATION FOR THE ADMINISTRATION OF THE PROGRAM. THE AGGREGATE
ANNUAL REVENUE GENERATED BY SUCH FEE SHALL NOT EXCEED THE ACTUAL COSTS
INCURRED BY THE CORPORATION, IN THE PRECEDING YEAR, IN COLLECTING A
DEFAULTED LOAN UNDER THIS PROGRAM ON WHICH THE CORPORATION HAS PAID A
CLAIM, EXCEPT IN THE INITIAL YEAR FOR WHICH SUCH FEE SHALL NOT EXCEED
THE FEE CHARGED BY THE CORPORATION FOR THE COLLECTION OF DEFAULTED LOANS
UNDER THE FEDERAL FAMILY EDUCATION LOAN PROGRAM. ANY AMOUNTS IN EXCESS
OF ACTUAL COST SHALL BE USED TO REDUCE THE FEE CHARGED IN THE SUBSEQUENT
YEAR.
7. ADMINISTRATIVE WAGE GARNISHMENT. (A) NOTWITHSTANDING ANY PROVISION
OF LAW TO THE CONTRARY, THE CORPORATION SHALL BE ENTITLED TO GARNISH THE
DISPOSABLE PAY OF AN INDIVIDUAL TO COLLECT THE AMOUNT OWED BY THE INDI-
VIDUAL, IF SUCH INDIVIDUAL FAILS TO MAKE REQUIRED VOLUNTARY PAYMENTS
UNDER A REPAYMENT AGREEMENT WITH THE CORPORATION, PROVIDED THAT:
(I) THE AMOUNT DEDUCTED FOR ANY PAY PERIOD DOES NOT EXCEED FIFTEEN
PERCENT OF DISPOSABLE PAY. HOWEVER, THE AMOUNT DEDUCTED FOR ANY PERIOD
MAY EXCEED FIFTEEN PERCENT WITH THE WRITTEN CONSENT OF THE INDIVIDUAL;
(II) PRIOR TO GARNISHMENT THE INDIVIDUAL SHALL HAVE BEEN GIVEN THIRTY
DAYS WRITTEN NOTICE TO THE INDIVIDUAL'S LAST KNOWN ADDRESS ADVISING SUCH
INDIVIDUAL OF THE NATURE OF THE OBLIGATION, AMOUNT OF THE LOAN OBLI-
GATION, THE CORPORATION'S INTENT TO GARNISH AND AN EXPLANATION OF THE
INDIVIDUAL'S RIGHTS UNDER THIS SECTION INCLUDING THE RIGHT TO INSPECT
AND COPY RECORDS RELATING TO THE DEBT;
(III) THE INDIVIDUAL SHALL HAVE BEEN GIVEN AN OPPORTUNITY WITHIN THE
AFOREMENTIONED THIRTY DAYS TO ENTER INTO A WRITTEN REPAYMENT AGREEMENT
WITH THE CORPORATION TO AVOID GARNISHMENT OF WAGES;
(IV) THE INDIVIDUAL SHALL HAVE BEEN PROVIDED AN OPPORTUNITY FOR A
HEARING PURSUANT TO THE REQUIREMENTS OF PARAGRAPH (F) OF THIS SUBDIVI-
SION.
(B) THE INDIVIDUAL'S EMPLOYER SHALL PAY TO THE CORPORATION AMOUNTS AS
DIRECTED IN THE WITHHOLDING ORDER AND SHALL BE LIABLE FOR FAILURE TO
S. 57--B 34 A. 157--B
COMPLY WITH SAID ORDER. THE CORPORATION MAY SUE AN EMPLOYER IN A COURT
OF COMPETENT JURISDICTION TO RECOVER FROM SUCH EMPLOYER THE AMOUNT THE
EMPLOYER FAILS TO WITHHOLD FROM THE INDIVIDUAL'S WAGES FOLLOWING RECEIPT
OF THE ORDER OF WITHHOLDING WITH INTEREST THEREON PLUS ATTORNEYS' FEES
AND COSTS;
(C) THE NOTICE OF WITHHOLDING SERVED UPON THE EMPLOYER SHALL CONTAIN
ONLY SUCH INFORMATION AS IS NECESSARY FOR THE EMPLOYER TO COMPLY WITH
THE WITHHOLDING ORDER.
(D) NO AMOUNT MAY BE DEDUCTED FROM THE WAGES OF AN INDIVIDUAL WHO HAS
BEEN INVOLUNTARILY SEPARATED FROM EMPLOYMENT AND HAS NOT BEEN CONTIN-
UOUSLY EMPLOYED FOR TWELVE MONTHS. AN INDIVIDUAL MUST PROVE THAT SEPA-
RATION FROM EMPLOYMENT WAS INVOLUNTARY. SEPARATION DUE TO INCARCERATION
SHALL NOT QUALIFY AS INVOLUNTARY SEPARATION.
(E) AN EMPLOYER MAY NOT DISCHARGE FROM EMPLOYMENT, TAKE DISCIPLINARY
ACTION AGAINST OR REFUSE TO EMPLOY AN INDIVIDUAL BY REASON OF THE FACT
THAT SUCH INDIVIDUAL'S WAGES ARE SUBJECT TO AN ORDER OF WITHHOLDING.
SUCH INDIVIDUAL MAY TAKE ACTION AGAINST SAID EMPLOYER IN A COURT OF
COMPETENT JURISDICTION FOR REINSTATEMENT, BACK PAY OR SUCH FURTHER
RELIEF AS MAY BE JUST AND NECESSARY.
(F) A HEARING AS DESCRIBED IN SUBPARAGRAPH (IV) OF PARAGRAPH (A) OF
THIS SUBDIVISION SHALL BE PROVIDED PRIOR TO AN ORDER OF WITHHOLDING IF
THE INDIVIDUAL SUBMITS A WRITTEN REQUEST FOR A HEARING ON OR BEFORE THE
FIFTEENTH DAY FOLLOWING THE NOTICE DESCRIBED IN SUBPARAGRAPH (II) OF
PARAGRAPH (A) OF THIS SUBDIVISION IN ACCORDANCE WITH PROCEDURES SET
FORTH BY THE CORPORATION. IF AN INDIVIDUAL FAILS TO SUBMIT A WRITTEN
REQUEST IN THE TIME FRAME PROVIDED, THE CORPORATION SHALL STILL PROVIDE
A HEARING UPON RECEIPT OF A WRITTEN REQUEST, BUT SUCH HEARING NEED NOT
BE PROVIDED PRIOR TO AN ORDER OF WITHHOLDING BEING ISSUED TO THE EMPLOY-
ER. THE HEARING SHALL NOT BE CONDUCTED BY A PARTY UNDER THE SUPERVISION
OR CONTROL OF THE CORPORATION EXCEPT THAT NOTHING SHALL PROHIBIT THE
CORPORATION FROM APPOINTING AN ADMINISTRATIVE LAW JUDGE. A HEARING DECI-
SION SHALL BE ISSUED NO LATER THAN SIXTY DAYS AFTER THE FILING OF THE
PETITION REQUESTING THE HEARING.
(G) FOR PURPOSES OF THIS SECTION "DISPOSABLE PAY" SHALL MEAN THAT PART
OF THE COMPENSATION OF ANY INDIVIDUAL FROM AN EMPLOYER REMAINING AFTER
DEDUCTION OF AMOUNTS REQUIRED TO BE WITHHELD BY LAW.
(H) ALL FUNDS RECEIVED THROUGH ADMINISTRATIVE WAGE GARNISHMENT SHALL
BE DEPOSITED INTO A DESIGNATED ACCOUNT WITHIN THE NEW YORK HIGHER EDUCA-
TION LOAN PROGRAM VARIABLE RATE DEFAULT RESERVE FUND, THE NEW YORK HIGH-
ER EDUCATION LOAN PROGRAM FIXED RATE DEFAULT RESERVE FUND, OR THE STATE
OF NEW YORK MORTGAGE AGENCY NEW YORK HIGHER EDUCATION LOAN PROGRAM
DEFAULT RESERVE FUND, AS APPLICABLE.
8. NEW YORK STATE TAX OFFSET. THE CORPORATION SHALL BE ENTITLED TO
RECEIVE CREDITS OF NEW YORK STATE TAX OVERPAYMENTS PURSUANT TO SECTION
ONE HUNDRED SEVENTY-ONE-D AND PARAGRAPH THREE OF SUBDIVISION (E) OF
SECTION SIX HUNDRED NINETY-SEVEN OF THE TAX LAW WITH RESPECT TO
DEFAULTED EDUCATION LOANS UNDER THIS PROGRAM. ALL FUNDS, OR CREDITS,
RECEIVED THROUGH SUCH TAX OFFSETS SHALL BE DEPOSITED INTO A DESIGNATED
ACCOUNT WITHIN THE NEW YORK HIGHER EDUCATION LOAN PROGRAM VARIABLE RATE
DEFAULT RESERVE FUND, THE NEW YORK HIGHER EDUCATION LOAN PROGRAM FIXED
RATE DEFAULT RESERVE FUND, OR THE STATE OF NEW YORK MORTGAGE AGENCY NEW
YORK HIGHER EDUCATION LOAN PROGRAM DEFAULT RESERVE FUND, AS APPLICABLE.
9. DATA SHARE. THE CORPORATION SHALL BE ENTITLED TO RECEIVE DATA FROM
THE NEW YORK STATE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO
SECTION ONE HUNDRED SEVENTY-ONE-A AND PARAGRAPH THREE OF SUBDIVISION (E)
S. 57--B 35 A. 157--B
OF SECTION SIX HUNDRED NINETY-SEVEN OF THE TAX LAW WITH RESPECT TO
DEFAULTED EDUCATION LOANS UNDER THIS PROGRAM.
10. STATUTE OF LIMITATION. NOTWITHSTANDING ANY PROVISION OF LAW TO THE
CONTRARY, THERE SHALL BE NO STATUTE OF LIMITATIONS TO BRING SUIT OR
OTHERWISE COLLECT AN EDUCATION LOAN UNDER THIS PROGRAM. JUDGMENTS IN
FAVOR OF THE CORPORATION UNDER THIS PROGRAM SHALL NOT EXPIRE AND THERE
SHALL BE NO STATUTE OF LIMITATIONS UPON WHICH TO ENFORCE OR COLLECT SAID
JUDGMENT.
11. CAPACITY OF MINORS. ANY PERSON OTHERWISE QUALIFYING FOR AN EDUCA-
TION LOAN UNDER THIS PROGRAM SHALL NOT BE DISQUALIFIED BY REASON OF HIS
OR HER BEING UNDER THE AGE OF EIGHTEEN YEARS AND FOR THE PURPOSES OF
APPLYING FOR, RECEIVING AND REPAYING SUCH A LOAN, ANY SUCH PERSON SHALL
BE DEEMED TO HAVE FULL LEGAL CAPACITY TO ACT. THE CORPORATION, IN
COLLECTING EDUCATION LOANS UNDER THIS PROGRAM, SHALL NOT BE SUBJECT TO A
DEFENSE RAISED BY ANY BORROWER BASED ON A CLAIM OF INFANCY.
12. USURY. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY THE
RATE OR AMOUNT OF INTEREST OR FEES PAYABLE ON EDUCATION LOANS MADE UNDER
THIS PROGRAM SHALL NOT EXCEED TWENTY-FIVE PER CENTUM PER ANNUM OR ITS
EQUIVALENT RATE FOR A LONGER OR SHORTER PERIOD.
13. DEATH AND DISABILITY DISCHARGE. UPON THE DEATH OF A STUDENT, FOR
THE FUNDING OF WHOSE HIGHER EDUCATION EXPENSES AN EDUCATION LOAN WAS
MADE, THE EDUCATION LOAN MADE UNDER THIS PROGRAM SHALL BE DEEMED
DISCHARGED. IF SUCH A STUDENT BECOMES TOTALLY AND PERMANENTLY DISABLED,
THE EDUCATION LOAN UNDER THIS PROGRAM SHALL BE DEEMED DISCHARGED. A
TOTAL OR PERMANENT DISABILITY SHALL MEAN A CONDITION OF AN INDIVIDUAL
WHO IS UNABLE TO WORK AND EARN MONEY BECAUSE OF AN INJURY OR ILLNESS
THAT IS EXPECTED TO CONTINUE INDEFINITELY OR RESULT IN DEATH. THE HOLDER
OF SUCH DISCHARGED EDUCATION LOANS SHALL BE PAID THE OUTSTANDING PRINCI-
PAL, CAPITALIZED AND UNPAID ACCRUED INTEREST DUE FROM THE NEW YORK HIGH-
ER EDUCATION LOAN PROGRAM VARIABLE RATE DEFAULT RESERVE FUND, THE NEW
YORK HIGHER EDUCATION LOAN PROGRAM FIXED RATE DEFAULT RESERVE FUND, OR
THE STATE OF NEW YORK MORTGAGE AGENCY NEW YORK HIGHER EDUCATION LOAN
PROGRAM DEFAULT RESERVE FUND, AS APPLICABLE.
14. BANKRUPTCY. EDUCATION LOANS UNDER THIS PROGRAM SHALL BE CONSIDERED
NON-DISCHARGEABLE PURSUANT TO SECTION 523(A)(8) OF THE U.S. BANKRUPTCY
CODE.
15. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, OTHER THAN SECTION ONE
THOUSAND SIX HUNDRED EIGHTY TWO AND SECTION TWO THOUSAND FOUR HUNDRED
FIVE-A OF THE PUBLIC AUTHORITIES LAW, A SECURITY INTEREST IN EDUCATION
LOANS SHALL BE PERFECTED ONLY BY THE FILING OF A FINANCING STATEMENT IN
THE MANNER PROVIDED UNDER SECTION 9-310 OF THE UNIFORM COMMERCIAL CODE,
AND SHALL ATTACH AND BE ASSIGNED PRIORITY IN THE MANNER PROVIDED UNDER
THE UNIFORM COMMERCIAL CODE WITH RESPECT TO SECURITY INTERESTS PERFECTED
BY SUCH A FILING, AND A DESCRIPTION OF COLLATERAL CONSISTING OF EDUCA-
TION LOANS IN ANY FINANCING STATEMENT SHALL BE CONCLUSIVELY DEEMED TO BE
LEGALLY SUFFICIENT IF IT REFERS TO RECORDS IDENTIFYING SUCH LOANS
RETAINED BY THE CORPORATION, PROVIDED THAT ANY SUCH SECURITY INTEREST
SHALL BE SUBJECT TO ANY APPLICABLE LIEN UNDER SECTION TWO THOUSAND FOUR
HUNDRED FIVE-A OF THE PUBLIC AUTHORITIES LAW. THE OWNER OF ANY EDUCATION
LOAN SHALL ADVISE THE CORPORATION OF ANY SALE OR ASSIGNMENT OF SUCH LOAN
AT THE TIME AND IN THE MANNER REQUIRED BY THE CORPORATION.
16. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY ELIGIBLE PUBLIC
COLLEGE OR PUBLIC CAREER EDUCATION INSTITUTION IS HEREBY AUTHORIZED TO
ENTER INTO ONE OR MORE AGREEMENTS WITH THE CORPORATION AND ANY ENTITY
AUTHORIZED TO FINANCE EDUCATION LOANS PURSUANT TO THE PUBLIC AUTHORITIES
LAW PROVIDING FOR THE PARTICIPATION OF SUCH COLLEGE OR CAREER EDUCATION
S. 57--B 36 A. 157--B
INSTITUTION IN THE PROGRAM AND TO PERFORM OR CONTRACT THE PERFORMANCE OF
ITS OBLIGATIONS UNDER ANY SUCH AGREEMENT. SUCH OBLIGATIONS MAY INCLUDE
WITHOUT LIMITATION THE PAYMENT OBLIGATIONS DESCRIBED IN THIS TITLE.
S 694. SALE OF EDUCATION LOANS. 1. THE CORPORATION AND HOLDERS SHALL
BE AUTHORIZED TO ENTER INTO ONE OR MORE AGREEMENTS FOR THE SALE OF
EDUCATION LOANS MADE PURSUANT TO THIS PROGRAM.
2. EDUCATION LOAN PURCHASES MAY BE FINANCED (I) BY BONDS ISSUED BY THE
STATE OF NEW YORK MORTGAGE AGENCY, OR OTHER ENTITY AUTHORIZED TO ISSUE
BONDS FOR SUCH PURPOSE PURSUANT TO THE PUBLIC AUTHORITIES LAW, IN AN
AMOUNT APPROVED BY THE DIRECTOR OF THE DIVISION OF THE BUDGET; OR (II)
BY OTHER NON-STATE SOURCES IN AMOUNTS ESTABLISHED PURSUANT TO AN AGREE-
MENT WITH THE CORPORATION.
3. THE CORPORATION SHALL ESTABLISH THE CRITERIA AND TERMS UPON WHICH
LENDERS MAY SELL EDUCATION LOANS SUBJECT TO THE APPROVAL OF THE STATE OF
NEW YORK MORTGAGE AGENCY OR ANY OTHER ENTITY AUTHORIZED TO ISSUE BONDS
UNDER THIS PROGRAM WITH RESPECT TO LOANS THAT ARE EXPECTED TO BE
FINANCED BY SUCH ENTITY.
S 694-A. MISCELLANEOUS. 1. NO EDUCATION LOAN SHALL BE DEEMED SUBJECT
TO SECTION ONE HUNDRED EIGHT OF THE BANKING LAW, TO ARTICLE NINE OF THE
BANKING LAW OR TO ANY OTHER PROVISIONS OF LAW GOVERNING THE QUALIFICA-
TIONS TO MAKE LOANS OR THE TERMS OR CONDITIONS OF LOANS DESCRIBED IN
THIS PART, INCLUDING, WITHOUT LIMITATION, THE INTEREST RATES, FEES AND
CHARGES APPLICABLE THERETO. NEITHER THE CORPORATION NOR ANY ENTITY
AUTHORIZED TO FINANCE EDUCATION LOANS PURSUANT TO THE PUBLIC AUTHORITIES
LAW SHALL BE SUBJECT TO ANY LICENSING REQUIREMENTS IN CONNECTION WITH
ITS EDUCATION LENDING ACTIVITIES. NO ENTITY SHALL BE CONSIDERED A LENDER
FOR PURPOSES OF ANY OTHER PROVISION OF LAW SOLELY AS A RESULT OF ITS
INTEREST IN AN EDUCATION LOAN MADE UNDER THIS PART.
2. FUNDS MAY BE APPROPRIATED TO THE CORPORATION AND/OR THE STATE OF
NEW YORK MORTGAGE AGENCY, OR OTHER ENTITY AUTHORIZED TO ISSUE BONDS
UNDER THIS PROGRAM, FOR THE ADMINISTRATION OF THIS PROGRAM.
3. INTEREST PAID ON EDUCATION LOANS MADE UNDER THIS PROGRAM SHALL BE
ALLOWED AS A DEDUCTION IN COMPUTING THE NET TAXABLE INCOME OF ANY SUCH
PERSON FOR PURPOSES OF ANY INCOME OR FRANCHISE TAX IMPOSED BY THE STATE
OR ANY POLITICAL SUBDIVISION THEREOF.
4. ANY AGREEMENT OF AN ENTITY AUTHORIZED TO ISSUE BONDS UNDER THE
PUBLIC AUTHORITIES LAW FOR PURPOSES OF THIS PROGRAM TO ACQUIRE EDUCATION
LOANS FROM A LENDER SHALL BE SUBJECT TO THE AVAILABILITY TO SUCH ENTITY
OF FUNDING FOR SUCH PURPOSE UPON TERMS AND CONDITIONS APPROVED BY SUCH
ENTITY AND SHALL NOT REQUIRE THE EXPENDITURE BY SUCH ENTITY OF FUNDS
FROM ANY SOURCE OTHER THAN AMOUNTS OBTAINED THROUGH THE ISSUANCE OF
BONDS OR NOTES, INCLUDING EARNINGS THEREON, AND ANY APPROPRIATIONS THER-
EOF.
5. THE CORPORATION, THE STATE OF NEW YORK MORTGAGE AGENCY, ANY LENDER,
AND ANY PUBLIC BENEFIT CORPORATION AUTHORIZED TO ISSUE BONDS UNDER THE
PUBLIC AUTHORITIES LAW FOR THE PURPOSES OF THIS PROGRAM SHALL NOT BE
SUBJECT TO TITLE 5 OF THE GENERAL OBLIGATIONS LAW WITH RESPECT TO EDUCA-
TION LOANS AND SUCH EDUCATION LOANS SHALL NOT BE SUBJECT TO SUCH TITLE.
6. TO THE EXTENT THAT THE PROVISIONS OF THIS PART ARE INCONSISTENT
WITH THE PROVISIONS OF ANY OTHER PART OF THIS ARTICLE, THE PROVISIONS OF
THIS PART SHALL BE CONTROLLING.
S 694-B. REPORTING. THE CORPORATION, AFTER CONSULTATION WITH THE STATE
OF NEW YORK MORTGAGE AGENCY, AND ANY OTHER PUBLIC BENEFIT CORPORATION
THAT SHALL HAVE ISSUED BONDS UNDER THE PUBLIC AUTHORITIES LAW FOR
PURPOSES OF THIS PROGRAM, WITH RESPECT TO LOANS THAT HAVE BEEN FINANCED
BY OR THAT ARE EXPECTED TO BE FINANCED BY SUCH ENTITY, SHALL REPORT
S. 57--B 37 A. 157--B
ANNUALLY WITH RESPECT TO EDUCATION LOANS MADE UNDER THIS PROGRAM FOR THE
PRIOR ACADEMIC YEAR TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE
SENATE, THE SPEAKER OF THE ASSEMBLY, THE DIRECTOR OF THE DIVISION OF THE
BUDGET, THE SENATE FINANCE COMMITTEE, THE ASSEMBLY WAYS AND MEANS
COMMITTEE AND THE STANDING COMMITTEES OF THE LEGISLATURE HAVING JURIS-
DICTION OF HIGHER EDUCATION ON THE NUMBER AND CHARACTERISTICS OF
STUDENTS WHO RECEIVED FIXED RATE AND/OR VARIABLE RATE LOANS UNDER THIS
PROGRAM, INCLUDING, BUT NOT LIMITED TO, THE INTEREST RATE CHARGED, THE
DEFAULT AND COLLECTION FEES ESTABLISHED, THE GRACE PERIOD ESTABLISHED IF
OTHER THAN SIX MONTHS, THE NUMBER OF STUDENTS WHO RECEIVED LOANS THAT
DEMONSTRATED FINANCIAL NEED PURSUANT TO SECTION SIX HUNDRED NINETY-TWO
OF THIS PART, THE INCOME ESTABLISHED BY THE CORPORATION PURSUANT TO
SECTION SIX HUNDRED NINETY-TWO OF THIS PART, THE NUMBER OF STUDENTS WHO
RECEIVED FIXED RATE LOANS, THE NUMBER OF STUDENTS WHO RECEIVED VARIABLE
RATE LOANS, THE NUMBER OF DEFAULT CLAIMS RECEIVED BY THE CORPORATION,
THE NUMBER OF BORROWERS SUBJECT TO ADMINISTRATIVE WAGE GARNISHMENT, AND
A LIST OF THE LENDERS AND HOLDERS, IF KNOWN, WHO HAVE PROVIDED VARIABLE
RATE LOANS. SUCH ANNUAL REPORT SHALL BE SUBMITTED BY THE FIRST DAY OF
DECEMBER FOLLOWING THE CLOSE OF THE ACADEMIC YEAR FOR WHICH SUCH EDUCA-
TION LOANS WERE MADE.
S 2. Subdivision 2 of section 653 of the education law, as added by
chapter 942 of the laws of 1974, is amended to read as follows:
2. a. To submit to the governor, the temporary president of the
senate, the speaker of the assembly, the senate finance committee, the
assembly ways and means committee and the standing committees of the
legislature having jurisdiction of higher education, at such times as
the director of the budget may prescribe a student aid and loan budget
request for the following state fiscal year. The budget request shall
include, but not be limited to estimates of the number and character-
istics of students eligible for aid and loans, OTHER THAN EDUCATION
LOANS MADE UNDER THE NEW YORK HIGHER EDUCATION LOAN PROGRAM PURSUANT TO
PART V OF THIS ARTICLE which budget request shall be developed by the
president after consultation with the board of regents in order to
implement the student financial aid and loan programs, OTHER THAN EDUCA-
TION LOANS MADE UNDER THE NEW YORK HIGHER EDUCATION LOAN PROGRAM PURSU-
ANT TO PART V OF THIS ARTICLE provided for in this article. NOTWITH-
STANDING, THE BUDGET REQUEST SHALL ALSO INCLUDE AN ESTIMATE OF THE
AMOUNTS NEEDED FOR STATE OPERATIONS WITHIN THE NEW YORK HIGHER EDUCATION
LOAN PROGRAM ACCOUNT FOR PURPOSES OF THE NEW YORK HIGHER EDUCATION LOAN
PROGRAM ESTABLISHED PURSUANT TO PART V OF THIS ARTICLE. A copy of the
budget request shall be transmitted to the commissioner for his informa-
tion. The budget request submitted by the board shall be subject to
approval annually as part of the executive budget.
b. At the time and in the format prescribed by the Director of the
Budget, the Board shall submit to the Division of the Budget an adminis-
trative and operating budget request. This budget request shall be
subject to approval annually as part of the executive budget.
c. In order further to assure the payment by the corporation to lend-
ing institutions for defaulted loans, OTHER THAN EDUCATION LOANS MADE
UNDER THE NEW YORK HIGHER EDUCATION LOAN PROGRAM PURSUANT TO PART V OF
THIS ARTICLE in the respective amounts as guaranteed by the corporation
pursuant to contract, there shall be annually apportioned and paid to
the corporation such estimated amount, if any, as shall be certified by
the board to the governor and director of the budget as necessary to
provide for the payment of all SUCH defaults for the next ensuing state
fiscal year. The board shall, as part of its annual budget request, make
S. 57--B 38 A. 157--B
and deliver to the governor and director of the budget, its certificate
stating the estimated amount, if any, required to pay SUCH defaults for
the ensuing state fiscal year, if any, and said sums shall be appor-
tioned and paid to the corporation during such fiscal year.
S 3. Section 656 of the education law, as added by chapter 942 of the
laws of 1974, is amended to read as follows:
S 656. Contributions to corporation; tax deduction thereof. Notwith-
standing the provisions of any general or special law all domestic
corporations or associations organized for the purpose of carrying on
business in this state, and any person, are hereby authorized to make
contributions to the New York state higher education services corpo-
ration OR TO THE NEW YORK HIGHER EDUCATION LOAN PROGRAM VARIABLE RATE
DEFAULT RESERVE FUND, THE NEW YORK HIGHER EDUCATION LOAN PROGRAM FIXED
RATE DEFAULT RESERVE FUND, OR THE STATE OF NEW YORK MORTGAGE AGENCY
HIGHER EDUCATION LOAN PROGRAM DEFAULT RESERVE FUND, AS APPLICABLE and
such contributions shall be allowed as deductions in computing the net
taxable income of any such person, corporation or association for
purposes of any income or franchise tax imposed by the state or any
political subdivision thereof.
S 4. Subdivision 2 of section 657 of the education law, as added by
chapter 942 of the laws of 1974, is amended to read as follows:
2. The state of New York [covenants] DOES HEREBY PLEDGE TO AND AGREE
with the holders of the [obligations and] BONDS, notes [issued by], OR
OTHER OBLIGATIONS OF the corporation pursuant to this article, OR OF THE
STATE OF NEW YORK MORTGAGE AGENCY AUTHORIZED IN SECTION TWO THOUSAND
FOUR HUNDRED SIX OF THE PUBLIC AUTHORITIES LAW FOR THE CORPORATE
PURPOSES AUTHORIZED IN SECTION TWO THOUSAND FOUR HUNDRED FIVE-A OF THE
PUBLIC AUTHORITIES LAW, OR OF ANY OTHER STATE ENTITY AUTHORIZED TO ISSUE
BONDS OR NOTES UNDER THE NEW YORK EDUCATION LOAN PROGRAM CODIFIED IN
PART V OF THIS ARTICLE THAT ARE ISSUED FOR SUCH PURPOSE, AND WITH THE
HOLDERS OF SUCH EDUCATION LOANS, THAT THE PROVISIONS OF LAW APPLICABLE
TO THE NEW YORK EDUCATION LOAN PROGRAM VARIABLE RATE DEFAULT RESERVE
FUND, THE NEW YORK EDUCATION LOAN PROGRAM FIXED RATE DEFAULT RESERVE
FUND, OR THE STATE OF NEW YORK MORTGAGE AGENCY NEW YORK EDUCATION LOAN
PROGRAM DEFAULT RESERVE FUND, AS APPLICABLE, AND TO THE POWERS OF THE
CORPORATION TO RECEIVE AND DEPOSIT IN EACH SUCH FUND THE APPLICABLE
AMOUNTS DESCRIBED THEREIN SHALL NOT BE AMENDED IN A MANNER ADVERSELY
AFFECTING THE INTERESTS OF SUCH HOLDERS WITHOUT ADEQUATE PROVISION BEING
MADE TO PROTECT SUCH INTERESTS AND that the corporation shall not be
required to pay any taxes or assessments upon any of its property or
upon its activities pursuant to the provisions of this article, or upon
any moneys, funds, revenues or other income held or received by the
corporation, and that the obligations and notes of the corporation and
the income therefrom shall at all times be exempt from taxation, except
for estate and gift taxes and taxes on transfers. EACH OF THE CORPO-
RATION, THE STATE OF NEW YORK MORTGAGE AGENCY AND ANY SUCH OTHER PUBLIC
BENEFIT CORPORATION, IS AUTHORIZED TO INCLUDE THIS PLEDGE AND AGREEMENT
OF THE STATE IN ANY AGREEMENTS WITH THE HOLDERS OF SUCH BONDS AND WITH
THE HOLDERS OF SUCH EDUCATION LOANS.
S 5. Subdivision 1 of section 661 of the education law, as amended by
chapter 844 of the laws of 1975, is amended to read as follows:
1. Applicability. The eligibility requirements and conditions estab-
lished in this section shall apply to all general awards, academic
performance awards and student loans OTHER THAN EDUCATION LOANS MADE
PURSUANT TO PART V OF THIS ARTICLE.
S. 57--B 39 A. 157--B
S 6. Paragraph c of subdivision 6 of section 661 of the education
law, as added by chapter 637 of the laws of 1985, subparagraph 1 as
amended by chapter 212 of the laws of 1988, is amended to read as
follows:
c. A student who has defaulted on a guaranteed student loan or has
failed to make a refund of an award may notwithstanding be considered
eligible for a further guaranteed student loan UNDER THE FEDERAL STUDENT
AID PROGRAMS or an award or both, [if] PROVIDED:
(1) (i) the student, except for the default, shall be eligible for the
guaranteed student loan or the award; and (ii) the student has entered
into a plan of repayment of the amount outstanding on the defaulted loan
or refund satisfactory to the corporation, and has made satisfactory
payments thereunder for a period of six months prior to the application
to the corporation for the guaranteed student loan or the award; and
(iii) in the case of a default in the payment of a guaranteed student
loan, the student has demonstrated to the satisfaction of the president,
that at the time the default occurred the student was entitled to a
deferment or could have been granted forbearance of payment on the loan
by the lender if a request for forbearance had been made;
(2) application for the further loan or award as authorized by this
paragraph shall be on such forms and supported by such documentation as
shall be prescribed by the president. The determination on the applica-
tion by the president may be made without a hearing and shall be deemed
final administrative action;
(3) anything to the contrary herein notwithstanding the corporation
may offset any award to which the student shall be entitled against a
refund due for a previous award, as provided under the provisions of
subdivision four of section six hundred sixty-five of this article.
S 7. Section 682 of the education law is REPEALED.
S 8. Section 683 of the education law is REPEALED.
S 8-a. Section 684 of the education law is REPEALED.
S 8-b. Section 651 of the education law is amended by adding a new
subdivision 7 to read as follows:
7. "LEND" SHALL INCLUDE ONE OR MORE OF THE FOLLOWING SERVICES: THE
ORIGINATION, DISBURSEMENT, SERVICING, AND/OR COLLECTION OF ANY STUDENT
OR PARENT EDUCATION LOAN MADE BY OR ON BEHALF OF A LENDING INSTITUTION A
GOVERNMENT ENTITY, OR AN INSTITUTION OF HIGHER EDUCATION FOR THE PURPOSE
OF PAYING FOR HIGHER EDUCATION EXPENSES AS WELL AS SERVING AS A SECOND-
ARY MARKET FOR THESE LOANS.
S 9. Section 2405-a of the public authorities law is REPEALED and a
new section 2405-a is added to read as follows:
S 2405-A. EDUCATION LOANS. (1) FOR PURPOSES OF THIS SECTION, THE
FOLLOWING WORDS AND TERMS SHALL HAVE THE FOLLOWING MEANING UNLESS THE
CONTEXT SHALL INDICATE ANOTHER OR DIFFERENT MEANING OR INTENT:
(A) "CORPORATION" SHALL MEAN THE NEW YORK STATE HIGHER EDUCATION
SERVICES CORPORATION.
(B) "EDUCATION LOAN" SHALL MEAN: (I) A NEW YORK HIGHER EDUCATION LOAN
PROGRAM LOAN MADE PURSUANT TO PART V OF ARTICLE FOURTEEN OF THE EDUCA-
TION LAW; OR (II) A LOAN UNDER PART B OF TITLE IV OF THE HIGHER EDUCA-
TION ACT OF NINETEEN HUNDRED SIXTY-FIVE, AS AMENDED, INCLUDING BUT NOT
LIMITED TO A LOAN DESCRIBED IN SUBDIVISION TEN OF SECTION TWENTY-FOUR
HUNDRED TWO OF THIS PART; PROVIDED, THAT THE BORROWER SHALL BE REQUIRED
TO APPLY THE NET PROCEEDS OF SUCH LOANS TO PAY THE STUDENT'S COSTS OF
POST-SECONDARY EDUCATION OR TO REPAY ONE OR MORE SUCH LOANS INCURRED FOR
SUCH PURPOSE.
S. 57--B 40 A. 157--B
(2) IN ADDITION TO THE POWERS OF THE AGENCY PURSUANT TO THE OTHER
SECTIONS OF THIS TITLE, THE AGENCY SHALL HAVE POWER:
(A) TO ENTER INTO ONE OR MORE AGREEMENTS WITH THE CORPORATION AND TO
PERFORM OR CONTRACT FOR THE PERFORMANCE OF ITS OBLIGATIONS UNDER ANY
SUCH AGREEMENT;
(B) TO MAKE AND CONTRACT TO MAKE AND TO ACQUIRE AND CONTRACT TO
ACQUIRE EDUCATION LOANS AND TO ENTER INTO ADVANCE COMMITMENTS FOR THE
PURCHASE OF SAID EDUCATION LOANS;
(C) SUBJECT TO ANY AGREEMENT WITH BONDHOLDERS OR NOTEHOLDERS, TO
INVEST MONEYS OF THE AGENCY NOT REQUIRED FOR IMMEDIATE USE, INCLUDING
PROCEEDS FROM THE SALE OF ANY BONDS OR NOTES, IN EDUCATION LOANS;
(D) TO MAKE AND EXECUTE CONTRACTS FOR THE MARKETING, ORIGINATION,
SERVICING, COLLECTION, ADMINISTRATION, GUARANTEE, SECURING, AND FINANC-
ING OF EDUCATION LOANS ORIGINATED OR ACQUIRED BY THE AGENCY PURSUANT TO
THIS TITLE, AND TO PAY THE REASONABLE VALUE OF SERVICES RENDERED TO THE
AGENCY PURSUANT TO THOSE CONTRACTS;
(E) SUBJECT TO ANY AGREEMENT WITH BONDHOLDERS OR NOTEHOLDERS, TO RENE-
GOTIATE OR REFINANCE ANY EDUCATION LOAN THAT HAS BEEN ACQUIRED BY THE
AGENCY OR WHICH THE AGENCY HAS COMMITTED TO PURCHASE THAT IS IN DEFAULT;
TO WAIVE ANY DEFAULT OR CONSENT TO THE MODIFICATION OF THE TERMS OR ANY
SUCH EDUCATION LOAN; TO FORGIVE ALL OR PART OF ANY INDEBTEDNESS; AND TO
COMMENCE ANY ACTION OR PROCEEDING TO PROTECT OR ENFORCE ANY RIGHT
CONFERRED UPON IT WITH RESPECT TO ANY SUCH EDUCATION LOAN BY LAW, LOAN
AGREEMENT, CONTRACT OR OTHER AGREEMENT;
(F) TO PRESCRIBE STANDARDS AND CRITERIA FOR THE ORIGINATION OF EDUCA-
TION LOANS TO BE ELIGIBLE FOR ACQUISITION BY THE AGENCY AND FOR EDUCA-
TION LOANS PURCHASED BY THE AGENCY;
(G) SUBJECT TO ANY AGREEMENT WITH BONDHOLDERS OR NOTEHOLDERS, TO SELL
ANY EDUCATION LOANS MADE OR ACQUIRED BY THE AGENCY AT PUBLIC OR PRIVATE
SALE AND AT SUCH PRICE OR PRICES AND ON SUCH TERMS AS THE AGENCY SHALL
DETERMINE;
(H) TO ESTABLISH, REVISE FROM TIME TO TIME, CHARGE AND COLLECT SUCH
PREMIUMS OR FEES IN CONNECTION WITH EDUCATION LOANS AND ITS PARTIC-
IPATION IN THE NEW YORK HIGHER EDUCATION LOAN PROGRAM AS THE AGENCY
SHALL DETERMINE; AND
(I) SUBJECT TO ANY AGREEMENT WITH BONDHOLDERS OR NOTEHOLDERS, TO
INVEST MONEYS PLEDGED TO SECURE BONDS ISSUED FOR THE CORPORATE PURPOSES
AUTHORIZED BY THIS SECTION NOT REQUIRED FOR IMMEDIATE USE IN INVESTMENTS
AUTHORIZED FOR INVESTMENT OF STATE FUNDS UNDER SECTION NINETY-EIGHT OR
NINETY-EIGHT-A OF THE STATE FINANCE LAW.
(3) THE AGENCY SHALL HAVE THE POWER AND IS HEREBY AUTHORIZED FROM TIME
TO TIME TO ISSUE ITS BONDS AND NOTES PURSUANT TO SECTION TWO THOUSAND
FOUR HUNDRED SIX OF THIS TITLE FOR THE CORPORATE PURPOSES AUTHORIZED BY
THIS SECTION, INCLUDING WITHOUT LIMITATION FOR THE PURPOSES OF FINANCING
AND REFINANCING EDUCATION LOANS AND OF REFUNDING ANY BONDS OR NOTES
ISSUED FOR SUCH PURPOSE.
(4) EACH LENDER OR SERVICE PROVIDER WHO MAKES A REPRESENTATION OR
WARRANTY TO THE AGENCY WITH RESPECT TO AN EDUCATION LOAN SHALL BE LIABLE
TO THE AGENCY FOR ANY DAMAGES SUFFERED BY THE AGENCY BY REASON OF THE
UNTRUTH OF SUCH REPRESENTATION OR THE BREACH OF SUCH WARRANTY AND, IN
THE EVENT THAT ANY REPRESENTATION SHALL PROVE TO BE UNTRUE WHEN MADE OR
IN THE EVENT OF ANY BREACH OF WARRANTY, SUCH PERSON SHALL, AT THE OPTION
OF THE AGENCY, REPURCHASE THE EDUCATION LOAN FOR THE PRICE PROVIDED IN
THE APPLICABLE FINANCING AGREEMENT, AS THE AGENCY MAY DETERMINE.
(5) IT IS THE INTENT OF THE LEGISLATURE THAT ANY PLEDGE BY THE AGENCY
OF EDUCATION LOANS OR OF EARNINGS, REVENUES OR OTHER MONEYS RECEIVABLE
S. 57--B 41 A. 157--B
FROM ANY SOURCE, INCLUDING WITHOUT LIMITATION DEFAULT PAYMENTS BY THE
NEW YORK HIGHER EDUCATION LOAN PROGRAM VARIABLE RATE DEFAULT RESERVE
FUND, THE NEW YORK HIGHER EDUCATION LOAN PROGRAM FIXED RATE DEFAULT
RESERVE FUND, OR THE STATE OF NEW YORK MORTGAGE AGENCY NEW YORK HIGHER
EDUCATION LOAN PROGRAM DEFAULT RESERVE FUND, AS APPLICABLE, WITH RESPECT
TO EDUCATION LOANS FINANCED BY THE AGENCY, SHALL BE VALID AND BINDING
FROM THE TIME WHEN THE PLEDGE IS MADE. THE EDUCATION LOANS, EARNINGS,
REVENUES OR OTHER MONEYS SO PLEDGED AND THEREAFTER RECEIVED BY THE AGEN-
CY OR ITS AGENT, INCLUDING WITHOUT LIMITATION THE HIGHER EDUCATION
SERVICES CORPORATION OR ANY EDUCATION LOAN SERVICER, SHALL IMMEDIATELY
BE SUBJECT TO THE LIEN OF SUCH PLEDGE WITHOUT ANY PHYSICAL DELIVERY
THEREOF OR FURTHER ACT, AND THE LIEN OF ANY SUCH PLEDGE SHALL BE VALID
AND BINDING AS AGAINST ALL PARTIES HAVING CLAIMS OF ANY KIND IN TORT,
CONTRACT OR OTHERWISE AGAINST THE AGENCY OR ITS AGENT, INCLUDING WITHOUT
LIMITATION THE HIGHER EDUCATION SERVICES CORPORATION OR ANY EDUCATION
LOAN SERVICER, IRRESPECTIVE OF WHETHER SUCH PARTIES HAVE NOTICE THEREOF.
NEITHER THE RESOLUTION NOR ANY OTHER INSTRUMENT BY WHICH A PLEDGE IS
CREATED NEED BE RECORDED.
(6) THE STATE OF NEW YORK MORTGAGE AGENCY NEW YORK HIGHER EDUCATION
LOAN PROGRAM DEFAULT RESERVE FUND. (A) THERE IS HEREBY CREATED AND
ESTABLISHED IN THE SOLE CUSTODY OF THE STATE OF NEW YORK MORTGAGE AGENCY
A SPECIAL FUND TO BE KNOWN AS THE STATE OF NEW YORK MORTGAGE AGENCY NEW
YORK HIGHER EDUCATION LOAN PROGRAM DEFAULT RESERVE FUND WHICH SHALL BE
FOR THE EXCLUSIVE BENEFIT OF THE HOLDERS OF EDUCATION LOANS THAT THE
AGENCY HAS ACQUIRED, OR AGREED TO ACQUIRE, UNDER THE NEW YORK HIGHER
EDUCATION LOAN PROGRAM, CODIFIED IN PART V OF ARTICLE FOURTEEN OF THE
EDUCATION LAW.
(B) AMOUNTS HELD IN THIS FUND SHALL NOT BE, OR BE DEEMED, FUNDS OF THE
STATE OR FUNDS UNDER THE MANAGEMENT OF THE STATE, THE AGENCY, OR THE
CORPORATION. THE OBLIGATIONS OF SUCH FUND SHALL NOT BE, OR BE DEEMED,
THE DEBTS OR OBLIGATIONS OF THE STATE AND THE STATE SHALL NOT BE, OR BE
DEEMED, IN ANY WAY OBLIGATED TO: ANY HOLDER OF ANY SUCH EDUCATION LOAN;
ANY HOLDER OF BONDS ISSUED PURSUANT TO SECTION TWO THOUSAND FOUR HUNDRED
SIX OF THIS PART FOR THE CORPORATE PURPOSES AUTHORIZED IN SECTION TWO
THOUSAND FIVE-A OF THIS ARTICLE; ANY FIDUCIARY OR PROVIDER OF ANY CREDIT
FACILITY, LIQUIDITY FACILITY OR INTEREST RATE EXCHANGE AGREEMENT WITH
RESPECT TO SUCH BONDS; OR ANY OTHER CREDITOR OF THIS FUND.
(C) SUCH FUND SHALL CONSIST OF: (I) ALL MONEYS RECEIVED BY THE HIGHER
EDUCATION SERVICES CORPORATION PURSUANT TO PARAGRAPH (B) OF SUBDIVISION
SEVEN OF SECTION SIX HUNDRED NINETY-TWO OF THE EDUCATION LAW, IN
CONNECTION WITH EDUCATION LOANS THAT THE AGENCY HAS ACQUIRED OR AGREED
TO ACQUIRE UNDER THE NEW YORK HIGHER EDUCATION LOAN PROGRAM EDUCATION
LOANS; (II) ANY TRANSFERS FROM THE NEW YORK HIGHER EDUCATION LOAN
PROGRAM VARIABLE RATE DEFAULT RESERVE FUND CREATED BY SECTION
SEVENTY-EIGHT-A OF THE STATE FINANCE LAW OR FROM THE NEW YORK HIGHER
EDUCATION LOAN PROGRAM FIXED RATE DEFAULT RESERVE FUND CREATED BY
SECTION SEVENTY-EIGHT-B OF THE STATE FINANCE LAW; AND (III) ANY APPRO-
PRIATION PAYMENT OR TRANSFER TO THE AGENCY FOR SUCH PURPOSE.
(D) THE AGENCY SHALL ESTABLISH ACCOUNTS WITHIN THE FUND AND PRIORITIES
OF PAYMENT FROM SUCH ACCOUNTS AND SHALL INVEST THE FUND IN INVESTMENTS
AUTHORIZED FOR INVESTMENT OF STATE FUNDS UNDER SECTION NINETY-EIGHT OR
NINETY-EIGHT-A OF THE STATE FINANCE LAW.
(E) THIS FUND, INCLUDING ALL SUB-ACCOUNTS THEREOF, SHALL BE SEGREGATED
FROM ALL OTHER FUNDS KEPT BY THE AGENCY AND SHALL NOT BE USED FOR ANY
OTHER PURPOSE BEYOND THOSE SET FORTH IN PART V OF ARTICLE FOURTEEN OF
THE EDUCATION LAW OR IN THIS SECTION. THE AGENCY SHALL UTILIZE MONIES IN
S. 57--B 42 A. 157--B
THE FUND SOLELY TO PAY THE OUTSTANDING PRINCIPAL, CAPITALIZED AND UNPAID
ACCRUED INTEREST ON DEFAULTED EDUCATION LOANS DESCRIBED IN PARAGRAPH A
OF THIS SUBDIVISION.
(F) NOTHING CONTAINED IN THIS SECTION SHALL PREVENT THE AGENCY, OR THE
CORPORATION, FROM RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE PURPOSES
OF THIS FUND AND DEPOSITING THEM INTO THE FUND ACCORDING TO LAW, RULES,
OR REGULATIONS.
(G) THE AGENCY SHALL MAKE PAYMENTS FROM THE MONIES IN THIS FUND IN
AMOUNTS AND AT TIMES REQUIRED PURSUANT TO PART V OF ARTICLE FOURTEEN OF
THE EDUCATION LAW.
S 10. Section 201 of the state finance law is amended by adding a new
subdivision 16 to read as follows:
16. THE COMPTROLLER IS HEREBY AUTHORIZED TO DEDUCT FROM THE SALARY OF
ANY STATE EMPLOYEE SUCH AMOUNT AS SUCH EMPLOYEE MAY SPECIFY IN WRITING
TO BE FILED WITH THE PAYROLL OFFICER OF THE EMPLOYEE'S AGENCY FOR THE
PURPOSE OF MAKING PAYMENTS ON OUTSTANDING EDUCATION LOANS MADE PURSUANT
TO PART V OF ARTICLE FOURTEEN OF THE EDUCATION LAW AND TO TRANSMIT
DEDUCTIONS SO WITHHELD TO THE APPROPRIATE COLLECTING AGENT DESIGNATED BY
THE HIGHER EDUCATION SERVICES CORPORATION FOR RECEIPT THEREOF. ANY SUCH
WRITTEN AUTHORIZATION MAY BE WITHDRAWN BY SUCH EMPLOYEE AT ANY TIME UPON
FILING WRITTEN NOTICE OF SUCH WITHDRAWAL WITH THE COMPTROLLER. THE COMP-
TROLLER IS HEREBY AUTHORIZED TO MAKE SUCH RULES AND REGULATIONS AS MAY
BE NECESSARY TO PROVIDE FOR DEDUCTIONS FOR THIS PURPOSE.
S 11. The state finance law is amended by adding a new section 78-a to
read as follows:
S 78-A. NEW YORK HIGHER EDUCATION LOAN PROGRAM VARIABLE RATE DEFAULT
RESERVE FUND. 1. THERE IS HEREBY CREATED AND ESTABLISHED IN THE SOLE
CUSTODY OF THE STATE COMPTROLLER A SPECIAL FUND TO BE KNOWN AS THE NEW
YORK HIGHER EDUCATION LOAN PROGRAM VARIABLE RATE DEFAULT RESERVE FUND
WHICH SHALL BE FOR THE EXCLUSIVE BENEFIT OF THE HOLDERS OF VARIABLE RATE
EDUCATION LOANS ORIGINATED PURSUANT TO THE NEW YORK HIGHER EDUCATION
LOAN PROGRAM CODIFIED IN PART V OF ARTICLE FOURTEEN OF THE EDUCATION
LAW, OTHER THAN VARIABLE RATE EDUCATION LOANS DESCRIBED IN SUBDIVISION
SIX OF SECTION TWO THOUSAND FOUR HUNDRED FIVE-A OF THE PUBLIC AUTHORI-
TIES LAW.
2. AMOUNTS HELD IN THIS FUND SHALL NOT BE, OR BE DEEMED, FUNDS OF THE
STATE OR FUNDS UNDER THE MANAGEMENT OF THE STATE OR THE HIGHER EDUCATION
SERVICES CORPORATION. THE OBLIGATIONS OF THE FUND SHALL NOT BE, OR BE
DEEMED, THE DEBTS OR OBLIGATIONS OF THE STATE AND THE STATE SHALL NOT
BE, OR BE DEEMED, IN ANY WAY OBLIGATED TO: ANY HOLDER OF ANY SUCH EDUCA-
TION LOAN; ANY HOLDER OF BONDS ISSUED PURSUANT TO THE PUBLIC AUTHORITIES
LAW FOR THE PURPOSES OF THE NEW YORK HIGHER EDUCATION LOAN PROGRAM; ANY
FIDUCIARY OR PROVIDER OF ANY CREDIT FACILITY, LIQUIDITY FACILITY OR
INTEREST RATE EXCHANGE AGREEMENT WITH RESPECT TO SUCH BONDS; OR ANY
OTHER CREDITOR OF THIS FUND.
3. SUCH FUND SHALL CONSIST OF ALL MONEYS RECEIVED BY THE HIGHER
EDUCATION SERVICES CORPORATION PURSUANT TO PARAGRAPH (B) OF SUBDIVISION
SEVEN OF SECTION SIX HUNDRED NINETY-TWO OF THE EDUCATION LAW, IN
CONNECTION WITH VARIABLE RATE EDUCATION LOANS MADE UNDER PART V OF ARTI-
CLE FOURTEEN OF THE EDUCATION LAW, OTHER THAN VARIABLE RATE EDUCATION
LOANS DESCRIBED IN SUBDIVISION SIX OF SECTION TWO THOUSAND FOUR HUNDRED
FIVE-A OF THE PUBLIC AUTHORITIES LAW. THE STATE COMPTROLLER, AT THE
REQUEST OF THE HIGHER EDUCATION SERVICES CORPORATION, SHALL ESTABLISH
ACCOUNTS WITHIN THE FUND AND PRIORITIES OF PAYMENT FROM SUCH ACCOUNTS
AND SHALL INVEST THE FUND IN COMPLIANCE WITH APPLICABLE STATE LAWS
CONCERNING THE INVESTMENT OF PUBLIC FUNDS. MONEYS IN THE FUND SHALL BE
S. 57--B 43 A. 157--B
SEGREGATED FROM ALL OTHER FUNDS KEPT BY THE STATE COMPTROLLER AND SHALL
NOT BE USED FOR ANY OTHER PURPOSE BEYOND THOSE SET FORTH IN PART V OF
ARTICLE FOURTEEN OF THE EDUCATION LAW OR IN THIS SECTION.
4. THE STATE COMPTROLLER SHALL MAKE PAYMENTS FROM THE FUND IN AMOUNTS
AND AT TIMES REQUIRED BY THE HIGHER EDUCATION SERVICES CORPORATION
PURSUANT TO PART V OF ARTICLE FOURTEEN OF THE EDUCATION LAW. NOTWITH-
STANDING SUBDIVISION ONE OF THIS SECTION, UPON CERTIFICATION BY THE
STATE OF NEW YORK MORTGAGE AGENCY THAT A VARIABLE RATE EDUCATION LOAN
DESCRIBED IN SUBDIVISION THREE OF THIS SECTION HAS BEEN ACQUIRED BY THE
AGENCY OR HAS BECOME SUBJECT TO THE AGREEMENT OF THE AGENCY TO ACQUIRE
SUCH EDUCATION LOAN, THE STATE COMPTROLLER SHALL MAKE TRANSFERS FROM THE
MONIES IN THE VARIABLE RATE NEW YORK HIGHER EDUCATION LOAN PROGRAM
DEFAULT RESERVE FUND TO THE CORPORATION FOR DEPOSIT INTO THE STATE OF
NEW YORK MORTGAGE AGENCY NEW YORK HIGHER EDUCATION LOAN PROGRAM DEFAULT
RESERVE FUND CREATED BY SUBDIVISION SIX OF SECTION TWO THOUSAND FOUR
HUNDRED FIVE-A OF THE PUBLIC AUTHORITIES LAW IN AMOUNTS CERTIFIED BY THE
AGENCY AND THE CORPORATION AS PROPERLY ALLOCABLE TO SUCH EDUCATION LOAN.
S 12. The state finance law is amended by adding a new section 78-b to
read as follows:
S 78-B. NEW YORK HIGHER EDUCATION LOAN PROGRAM FIXED RATE DEFAULT
RESERVE FUND. 1. THERE IS HEREBY CREATED AND ESTABLISHED IN THE SOLE
CUSTODY OF THE STATE COMPTROLLER A SPECIAL FUND TO BE KNOWN AS THE NEW
YORK HIGHER EDUCATION LOAN PROGRAM FIXED RATE DEFAULT RESERVE FUND WHICH
SHALL BE FOR THE EXCLUSIVE BENEFIT OF THE HOLDERS OF FIXED RATE EDUCA-
TION LOANS ORIGINATED PURSUANT TO THE NEW YORK HIGHER EDUCATION LOAN
PROGRAM CODIFIED IN PART V OF ARTICLE FOURTEEN OF THE EDUCATION LAW,
OTHER THAN FIXED RATE EDUCATION LOANS DESCRIBED IN SUBDIVISION SIX OF
SECTION TWO THOUSAND FOUR HUNDRED FIVE-A OF THE PUBLIC AUTHORITIES LAW.
2. AMOUNTS HELD IN THIS FUND SHALL NOT BE, OR BE DEEMED, FUNDS OF THE
STATE OR FUNDS UNDER THE MANAGEMENT OF THE STATE OR THE HIGHER EDUCATION
SERVICES CORPORATION. THE OBLIGATIONS OF THE FUND SHALL NOT BE, OR BE
DEEMED, THE DEBTS OR OBLIGATIONS OF THE STATE AND THE STATE SHALL NOT
BE, OR BE DEEMED, IN ANY WAY OBLIGATED TO: ANY HOLDER OF ANY SUCH EDUCA-
TION LOAN; ANY HOLDER OF BONDS ISSUED PURSUANT TO THE PUBLIC AUTHORITIES
LAW FOR THE PURPOSES OF THE NEW YORK HIGHER EDUCATION LOAN PROGRAM; ANY
FIDUCIARY OR PROVIDER OF ANY CREDIT FACILITY, LIQUIDITY FACILITY OR
INTEREST RATE EXCHANGE AGREEMENT WITH RESPECT TO SUCH BONDS; OR ANY
OTHER CREDITOR OF THIS FUND.
3. SUCH FUND SHALL CONSIST OF ALL MONEYS RECEIVED BY THE HIGHER
EDUCATION SERVICES CORPORATION PURSUANT TO PARAGRAPH (B) OF SUBDIVISION
SEVEN OF SECTION SIX HUNDRED NINETY-TWO OF THE EDUCATION LAW, IN
CONNECTION WITH FIXED RATE EDUCATION LOANS, OTHER THAN FIXED RATE EDUCA-
TION LOANS DESCRIBED IN SUBDIVISION SIX OF SECTION TWO THOUSAND FOUR
HUNDRED FIVE-A OF THE PUBLIC AUTHORITIES LAW. THE STATE COMPTROLLER, AT
THE REQUEST OF THE HIGHER EDUCATION SERVICES CORPORATION, SHALL ESTAB-
LISH ACCOUNTS WITHIN THE FUND AND PRIORITIES OF PAYMENT FROM SUCH
ACCOUNTS AND SHALL INVEST THE FUND IN COMPLIANCE WITH APPLICABLE STATE
LAWS CONCERNING THE INVESTMENT OF PUBLIC FUNDS. MONEYS IN THE FUND SHALL
BE SEGREGATED FROM ALL OTHER FUNDS KEPT BY THE STATE COMPTROLLER AND
SHALL NOT BE USED FOR ANY OTHER PURPOSE BEYOND THOSE SET FORTH IN PART V
OF ARTICLE FOURTEEN OF THE EDUCATION LAW OR IN THIS SECTION.
4. THE STATE COMPTROLLER SHALL MAKE PAYMENTS FROM THE FUND IN AMOUNTS
AND AT TIMES REQUIRED BY THE HIGHER EDUCATION SERVICES CORPORATION
PURSUANT TO PART V OF ARTICLE FOURTEEN OF THE EDUCATION LAW. NOTWITH-
STANDING SUBDIVISION ONE OF THIS SECTION, UPON CERTIFICATION BY THE
STATE OF NEW YORK MORTGAGE AGENCY THAT A FIXED RATE EDUCATION LOAN
S. 57--B 44 A. 157--B
DESCRIBED IN SUBDIVISION THREE OF THIS SECTION HAS BEEN ACQUIRED BY THE
AGENCY OR HAS BECOME SUBJECT TO THE AGREEMENT OF THE AGENCY TO ACQUIRE
SUCH EDUCATION LOAN, THE STATE COMPTROLLER SHALL MAKE TRANSFERS FROM THE
MONIES IN THE FIXED RATE NEW YORK HIGHER EDUCATION LOAN PROGRAM DEFAULT
RESERVE FUND TO THE CORPORATION FOR DEPOSIT INTO THE STATE OF NEW YORK
MORTGAGE AGENCY NEW YORK HIGHER EDUCATION LOAN PROGRAM DEFAULT RESERVE
FUND CREATED BY SUBDIVISION SIX OF SECTION TWO THOUSAND FOUR HUNDRED
FIVE-A OF THE PUBLIC AUTHORITIES LAW IN AMOUNTS CERTIFIED BY THE AGENCY
AND THE CORPORATION AS PROPERLY ALLOCABLE TO SUCH EDUCATION LOAN.
S 13. The public authorities law is amended by adding a new section
1679-c to read as follows:
S 1679-C. THE NEW YORK HIGHER EDUCATION LOAN PROGRAM. 1. FOR
PURPOSES OF THIS SECTION, THE FOLLOWING WORDS AND TERMS SHALL HAVE THE
FOLLOWING MEANING UNLESS THE CONTEXT SHALL INDICATE ANOTHER OR DIFFERENT
MEANING OR INTENT:
(A) "CORPORATION" SHALL MEAN THE NEW YORK STATE HIGHER EDUCATION
SERVICES CORPORATION.
(B) "EDUCATION LOAN" SHALL MEAN A LOAN MADE UNDER THE NEW YORK HIGHER
EDUCATION LOAN PROGRAM ESTABLISHED PURSUANT TO PART V OF ARTICLE FOUR-
TEEN OF THE EDUCATION LAW.
2. IN ADDITION TO THE POWERS OF THE AUTHORITY PURSUANT TO THE OTHER
SECTIONS OF THIS TITLE, THE AUTHORITY SHALL HAVE POWER:
(A) TO ENTER INTO ONE OR MORE AGREEMENTS WITH THE CORPORATION, WHICH
AGREEMENT MAY PROVIDE FOR THE SECURING OF EDUCATION LOANS IN ACCORDANCE
WITH PART V OF ARTICLE FOURTEEN OF THE EDUCATION LAW, AND TO PERFORM OR
CONTRACT FOR THE PERFORMANCE OF ITS OBLIGATIONS UNDER ANY SUCH AGREE-
MENT;
(B) TO MAKE AND CONTRACT TO MAKE AND TO ACQUIRE AND CONTRACT TO
ACQUIRE EDUCATION LOANS AND TO ENTER INTO ADVANCE COMMITMENTS FOR THE
PURCHASE OF SAID EDUCATION LOANS;
(C) SUBJECT TO ANY AGREEMENT WITH BONDHOLDERS OR NOTEHOLDERS, TO
INVEST MONEYS OF THE AUTHORITY NOT REQUIRED FOR IMMEDIATE USE, INCLUDING
PROCEEDS FROM THE SALE OF ANY BONDS OR NOTES, IN EDUCATION LOANS;
(D) TO SERVICE AND EXECUTE CONTRACTS FOR THE SERVICING OF EDUCATION
LOANS ACQUIRED BY THE AUTHORITY PURSUANT TO THIS TITLE, AND TO PAY THE
REASONABLE VALUE OF SERVICES RENDERED TO THE AUTHORITY PURSUANT TO THOSE
CONTRACTS;
(E) TO PRESCRIBE STANDARDS AND CRITERIA FOR EDUCATION LOANS PURCHASES,
INSOFAR AS SUCH STANDARDS AND CRITERIA ARE NOT INCONSISTENT WITH THE
APPLICABLE AGREEMENT WITH THE CORPORATION;
(F) SUBJECT TO ANY AGREEMENT WITH BONDHOLDERS OR NOTEHOLDERS, TO SELL
ANY EDUCATION LOANS MADE OR ACQUIRED BY THE AUTHORITY AT PUBLIC OR
PRIVATE SALE AND AT SUCH PRICE OR PRICES AND ON SUCH TERMS AS THE
AUTHORITY SHALL DETERMINE; AND
(G) TO ESTABLISH, REVISE FROM TIME TO TIME, CHARGE AND COLLECT SUCH
PREMIUMS OR FEES IN CONNECTION WITH EDUCATION LOANS AND ITS PARTIC-
IPATION IN THE NEW YORK HIGHER EDUCATION LOAN PROGRAM AS THE AUTHORITY
SHALL DETERMINE.
3. THE AUTHORITY SHALL HAVE THE POWER AND IS HEREBY AUTHORIZED FROM
TIME TO TIME TO ISSUE BONDS AND NOTES, INCLUDING WITHOUT LIMITATION FOR
THE PURPOSES OF FINANCING AND REFINANCING EDUCATION LOANS AND OF REFUND-
ING ANY BONDS OR NOTES ISSUED FOR SUCH PURPOSE PURSUANT TO PART V OF
ARTICLE FOURTEEN OF THE EDUCATION LAW.
S 14. Subdivision 4-a of section 1682 of the public authorities law,
as amended by chapter 817 of the laws of 1976, is amended to read as
follows:
S. 57--B 45 A. 157--B
4-a. Any pledge of or other security interest in moneys, earnings,
income, revenues, accounts, contract rights, general intangibles or
other personal property made or created by the authority shall be valid,
binding and perfected from the time when such pledge or other security
interest attaches, without any physical delivery of the collateral or
further act. The lien of any such pledge or other security interest
shall be valid, binding and perfected as against all parties having
claims of any kind in tort, contract or otherwise against the authority
irrespective of whether or not such parties have notice thereof. No
instrument by which such a pledge or other security interest is created
nor any financing statement need be recorded or filed. This subdivision
shall apply notwithstanding the provisions of the uniform commercial
code. ANY MONEYS, EARNINGS, INCOME, REVENUES, ACCOUNTS, CONTRACT
RIGHTS, GENERAL INTANGIBLES OR OTHER PERSONAL PROPERTY HELD OR RECEIVED
BY THE AUTHORITY OR ON BEHALF OF THE AUTHORITY BY ANY LENDER, SERVICER,
TRUSTEE, CUSTODIAN, COLLECTION AGENT OR INSTITUTION OF HIGHER EDUCATION,
PURSUANT TO ANY RESOLUTION, TRUST AGREEMENT OR OTHER AGREEMENT AUTHOR-
IZED BY, OR ENTERED INTO IN CONNECTION WITH, THE PROGRAM ESTABLISHED
PURSUANT TO SECTION SIXTEEN HUNDRED SEVENTY NINE-C OF THIS TITLE AND
PLEDGED BY THE AUTHORITY PURSUANT TO A RESOLUTION, TRUST AGREEMENT OR
SUCH OTHER AGREEMENT FOR THE BENEFIT OF BONDHOLDERS SHALL CONSTITUTE
MONEYS, EARNINGS, INCOME, REVENUES, ACCOUNTS, CONTRACT RIGHTS, GENERAL
INTANGIBLES OR OTHER PERSONAL PROPERTY PLEDGED BY THE AUTHORITY FOR ALL
PURPOSES OF THIS SUBDIVISION.
S 15. This act shall take effect July 1, 2009.
PART K
Intentionally omitted.
PART L
Intentionally omitted.
PART M
Section 1. Section 1306-b of the real property tax law is REPEALED.
S 2. Section 171-q of the tax law is REPEALED.
S 3. Section 178 of the tax law is REPEALED.
S 4. Subparagraphs (A) and (B) of paragraph 2 of subsection (e) of
section 1310 of the tax law, as amended by section 1 of part R of chap-
ter 57 of the laws of 2008, are amended to read as follows:
(A) Married individuals filing joint returns and surviving spouses. In
the case of a husband and wife who make a single return jointly and of a
surviving spouse:
For taxable years beginning: The credit shall be:
in 2001-2005 $125
in 2006 $230
in 2007-2008 $290
in 2009 AND AFTER [$310] $125
[after 2009] [$335]
(B) All others. In the case of an unmarried individual, a head of a
household or a married individual filing a separate return:
For taxable years beginning: The credit shall be:
in 2001-2005 $62.50
in 2006 $115
S. 57--B 46 A. 157--B
in 2007-2008 $145
in 2009 AND AFTER [$155] $62.50
[after 2009] [$167.50]
S 5. Subparagraphs (A) and (B) of paragraph 2 of subdivision (c) of
section 11-1706 of the administrative code of the city of New York, as
amended by section 2 of part R of chapter 57 of the laws of 2008, are
amended to read as follows:
(A) Married individuals filing joint returns and surviving spouses. In
the case of a husband and wife who make a single return jointly and of a
surviving spouse:
For taxable years beginning: The credit shall be:
in 2001-2005 $125
in 2006 $230
in 2007-2008 $290
in 2009 AND AFTER [$310] $125
[after 2009] [$335]
(B) All others. In the case of an unmarried individual, a head of a
household or a married individual filing a separate return:
For taxable years beginning: The credit shall be:
in 2001-2005 $62.50
in 2006 $115
in 2007-2008 $145
in 2009 AND AFTER [$155] $62.50
[after 2009] [$167.50]
S 6. This act shall take effect immediately, provided that sections
one, two and three of this act shall apply to the administration and
issuance of Middle Class STAR rebates for the 2009-2010 and subsequent
school years, and sections four and five of this act shall apply to
taxable years beginning on and after January 1, 2009.
PART N
Intentionally omitted.
PART O
Section 1. Subdivision e of section 8 of section 4 of chapter 576 of
the laws of 1974, constituting the emergency tenant protection act of
nineteen seventy-four, as amended by chapter 403 of the laws of 1983, is
amended to read as follows:
e. The division shall maintain at least one office in each county
which is governed by the rent stabilization law of nineteen hundred
sixty-nine or this act; PROVIDED, HOWEVER, THAT THE DIVISION SHALL NOT
BE REQUIRED TO MAINTAIN AN OFFICE IN THE COUNTIES OF NASSAU, ROCKLAND,
OR RICHMOND.
S 2. This act shall take effect immediately; and provided that the
amendments to subdivision e of section 8 of the emergency tenant
protection act of nineteen seventy-four made by section one of this act
shall expire on the same date as such act expires and shall not affect
the expiration of such act as provided in section 17 of chapter 576 of
the laws of 1974.
PART P
Intentionally omitted.
S. 57--B 47 A. 157--B
PART Q
Section 1. Section 28 of part C of chapter 83 of the laws of 2002
amending the executive law and other laws relating to funding for chil-
dren and family services, as amended by section 1 of part I of chapter
57 of the laws of 2007, is amended to read as follows:
S 28. This act shall take effect immediately; provided that sections
nine through eighteen and twenty through twenty-seven of this act shall
be deemed to have been in full force and effect on and after April 1,
2002; provided, however, that section fifteen of this act shall apply to
claims that are otherwise reimbursable by the state on or after April 1,
2002 except as provided in subdivision 9 of section 153-k of the social
services law as added by section fifteen of this act; provided further
however, that nothing in this act shall authorize the office of children
and family services to deny state reimbursement to a social services
district for violations of the provisions of section 153-d of the social
services law for services provided from January 1, 1994 through March
31, 2002; provided that section nineteen of this act shall take effect
September 13, 2002; and, provided further, however, that notwithstanding
any law to the contrary, the office of children and family services
shall have the authority to promulgate, on an emergency basis, any rules
and regulations necessary to implement the requirements established
pursuant to this act; provided further, however, that the regulations to
be developed pursuant to section one of this act shall not be adopted by
emergency rule; and provided further that the provisions of sections
nine through twenty-seven of this act shall expire and be deemed
repealed on June 30, [2009] 2012.
S 2. This act shall take effect immediately.
PART R
Section 1. Subdivision 19 of section 246 of chapter 81 of the laws of
1995, amending the vehicle and traffic law and other laws relating to
the enforcement of support through the suspension of driving privileges,
as amended by section 1 of part J of chapter 59 of the laws of 2007, is
amended to read as follows:
19. Sections two hundred one, two hundred eight, two hundred eleven,
two hundred thirteen, two hundred fifteen and two hundred sixteen of
this act shall expire and be deemed repealed on June 30, [2009] 2011.
S 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2009.
PART S
Intentionally omitted.
PART T
Intentionally omitted.
PART U
Section 1. Paragraphs (a), (b) and (d) of subdivision 1 of section
131-o of the social services law, as amended by section 1 of part X of
chapter 57 of the laws of 2008, are amended and a new paragraph (c) is
added to read as follows:
S. 57--B 48 A. 157--B
(a) in the case of each individual receiving family care, an amount
equal to at least [$123.00] $130.00 for each month beginning on or after
January first, two thousand [eight] NINE.
(b) in the case of each individual receiving residential care, an
amount equal to at least [$142.00] $150.00 for each month beginning on
or after January first, two thousand [eight] NINE.
(C) IN THE CASE OF EACH INDIVIDUAL RECEIVING ENHANCED RESIDENTIAL
CARE, AN AMOUNT EQUAL TO AT LEAST $178.00 FOR EACH MONTH BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND NINE.
(d) for the period commencing January first, two thousand [nine] TEN,
the monthly personal needs allowance shall be an amount equal to the sum
of the amounts set forth in subparagraphs one and two of this paragraph:
(1) the amounts specified in paragraphs (a) [and], (b) AND (C) of this
subdivision; and
(2) the amount in subparagraph one of this paragraph, multiplied by
the percentage of any federal supplemental security income cost of
living adjustment which becomes effective on or after January first, two
thousand [nine] TEN, but prior to June thirtieth, two thousand [nine]
TEN, rounded to the nearest whole dollar.
S 2. Paragraph (e) of subdivision 1 of section 131-o of the social
services law, as amended by section 45 of part C of chapter 58 of the
laws of 2005, is amended to read as follows:
[(e) in the case of each individual receiving enhanced residential
care, an amount equal to at least $144.00 for each month beginning on or
after January first, two thousand six, and an amount equal to $159.00
for each month beginning on or after January first, two thousand seven.]
S 3. Paragraphs (a), (b), (c), (d) and (e) of subdivision 2 of section
209 of the social services law, as amended by section 2 of part X of
chapter 57 of the laws of 2008, are amended to read as follows:
(a) On and after January first, two thousand [eight] NINE, for an
eligible individual living alone, [$724.00] $761.00; and for an eligible
couple living alone, [$1060.00] $1115.00.
(b) On and after January first, two thousand [eight] NINE, for an
eligible individual living with others with or without in-kind income,
[$660.00] $697.00; and for an eligible couple living with others with or
without in-kind income, [$1002.00] $1057.00.
(c) On and after January first, two thousand [eight] NINE, (i) for an
eligible individual receiving family care, [$903.48] $940.48 if he or
she is receiving such care in the city of New York or the county of
Nassau, Suffolk, Westchester or Rockland; and (ii) for an eligible
couple receiving family care in the city of New York or the county of
Nassau, Suffolk, Westchester or Rockland, two times the amount set forth
in subparagraph (i) of this paragraph; or (iii) for an eligible individ-
ual receiving such care in any other county in the state, [$865.48]
$902.48; and (iv) for an eligible couple receiving such care in any
other county in the state, two times the amount set forth in subpara-
graph (iii) of this paragraph.
(d) On and after January first, two thousand [eight] NINE, (i) for an
eligible individual receiving residential care, [$1072.00] $1109.00 if
he or she is receiving such care in the city of New York or the county
of Nassau, Suffolk, Westchester or Rockland; and (ii) for an eligible
couple receiving residential care in the city of New York or the county
of Nassau, Suffolk, Westchester or Rockland, two times the amount set
forth in subparagraph (i) of this paragraph; or (iii) for an eligible
individual receiving such care in any other county in the state,
[$1042.00] $1079.00; and (iv) for an eligible couple receiving such care
S. 57--B 49 A. 157--B
in any other county in the state, two times the amount set forth in
subparagraph (iii) of this paragraph.
(e) (i) On and after January first, two thousand [eight] NINE, for an
eligible individual receiving enhanced residential care, [$1293.00]
$1368.00; and (ii) for an eligible couple receiving enhanced residential
care, two times the amount set forth in subparagraph (i) of this para-
graph.
S 4. Subdivision 2 of section 209 of the social services law is
amended by adding a new paragraph (f) to read as follows:
(F) THE AMOUNTS SET FORTH IN PARAGRAPHS (A) THROUGH (E) OF THIS SUBDI-
VISION SHALL BE INCREASED TO REFLECT ANY INCREASES IN FEDERAL SUPPLE-
MENTAL SECURITY INCOME BENEFITS FOR INDIVIDUALS OR COUPLES WHICH BECOME
EFFECTIVE ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN BUT PRIOR TO JUNE
THIRTIETH, TWO THOUSAND TEN.
S 5. Paragraph (g) of subdivision 2 of section 209 of the social
services law, as amended by chapter 713 of the laws of 2005, is amended
to read as follows:
[(g) The amounts set forth in paragraphs (a) through (d) of this
subdivision and the amounts set forth in subparagraph (ii) of paragraph
(e) and subparagraph (ii) of paragraph (f) of this subdivision as added
by section forty-six of part C of chapter fifty-eight of the laws of two
thousand five shall be increased to reflect any increases in federal
supplemental security income benefits for individuals or couples which
become effective on or after January first, two thousand six but prior
to June thirtieth, two thousand six; provided, however, that the amounts
set forth in paragraphs (c), (d) and (f) of this subdivision with
respect to eligible couples shall be increased by an amount sufficient
to establish standards for couples that are equal to twice the increase
hereunder for eligible individuals.]
S 6. This act shall take effect immediately; provided however that the
amendments to paragraph (e) of subdivision 1 of section 131-o of the
social services law made by section two of this act and the amendments
to subdivision 2 of section 209 of the social services law made by
sections four and five of this act shall take effect on the same date as
the reversion of such provisions as provided in section 4 of part C of
chapter 57 of the laws of 2006, as amended, takes effect.
PART V
Section 1. Paragraph (a) of subdivision 1 of section 23 of the social
services law, as amended by chapter 398 of the laws of 1997, is amended
to read as follows:
(a) to social services districts:
(I) with respect to applicants for and recipients of public assistance
and care or other benefits pursuant to this chapter for which such
districts are responsible[,];
(II) with respect to any person legally responsible for the support of
such applicants and recipients [and];
(III) with respect to any person legally responsible for the support
of a recipient of services under section one hundred eleven-g of this
chapter or to any agent of any entity that is under contract with the
child support program pursuant to title [six-a] SIX-A of article three
of this chapter[,]; AND
(IV) WITH RESPECT TO THE PARENTS, THE STEPPARENTS, THE CHILD AND THE
SIBLINGS OF THE CHILD WHO WERE LIVING IN THE SAME HOUSEHOLD AS A CHILD
WHO IS IN THE CUSTODY, CARE AND CUSTODY OR CUSTODY AND GUARDIANSHIP OF A
S. 57--B 50 A. 157--B
LOCAL SOCIAL SERVICES DISTRICT OR OF THE OFFICE OF CHILDREN AND FAMILY
SERVICES DURING THE MONTH THAT THE COURT PROCEEDINGS LEADING TO THE
CHILD'S REMOVAL FROM THE HOUSEHOLD WERE INITIATED, OR THE WRITTEN
INSTRUMENT TRANSFERRING CARE AND CUSTODY OF THE CHILD PURSUANT TO THE
PROVISIONS OF SECTION THREE HUNDRED FIFTY-EIGHT-A OF THIS CHAPTER OR
SECTION THREE HUNDRED EIGHTY-FOUR-A OF THIS CHAPTER WAS SIGNED, PROVIDED
HOWEVER, THAT SUCH SOCIAL SERVICES DISTRICT SHALL ONLY USE THE INFORMA-
TION OBTAINED PURSUANT TO THIS SUBDIVISION FOR THE PURPOSE OF DETERMIN-
ING THE ELIGIBILITY OF SUCH CHILD FOR FEDERAL PAYMENTS FOR FOSTER CARE
AND ADOPTION ASSISTANCE PURSUANT TO THE PROVISIONS OF TITLE IV-E OF THE
FEDERAL SOCIAL SECURITY ACT,
S 2. Subdivision 3 of section 23 of the social services law, as sepa-
rately amended by chapters 304 and 818 of the laws of 1990, is amended
to read as follows:
3. Information obtained by the [department] OFFICE OF TEMPORARY AND
DISABILITY ASSISTANCE from the wage reporting system operated by the
state department of taxation and finance shall be considered confiden-
tial and shall not be disclosed to persons or agencies other than those
considered entitled to such information when such disclosure is neces-
sary for the proper administration of programs of public assistance and
care or for the proper administration of the child support program
pursuant to title six-A of article three of this chapter, OR OF ELIGI-
BILITY ASSESSMENTS OF CHILDREN FOR FEDERAL PAYMENTS FOR FOSTER CARE AND
ADOPTION ASSISTANCE PURSUANT TO THE PROVISIONS OF TITLE IV-E OF THE
FEDERAL SOCIAL SECURITY ACT. For the purpose of this subdivision, any
disclosure made pursuant to subdivision one of this section shall be
considered necessary for the proper administration of programs of public
assistance and care, OR OF ELIGIBILITY ASSESSMENTS OF CHILDREN FOR
FEDERAL PAYMENTS FOR FOSTER CARE AND ADOPTION ASSISTANCE PURSUANT TO THE
PROVISIONS OF TITLE IV-E OF THE FEDERAL SOCIAL SECURITY ACT; and the
federal parent locator service shall be considered an agency entitled to
such information as is necessary for the proper administration of the
child support program pursuant to title six-A of article three of this
chapter.
S 3. Paragraph (a) of subdivision 3 of section 171-a of the tax law,
as amended by chapter 304 of the laws of 1990 and as designated by chap-
ter 818 of the laws of 1990, is amended to read as follows:
(a) Notwithstanding any law to the contrary, the commissioner of taxa-
tion and finance shall maintain [a] cooperative [agreement] AGREEMENTS
with the state [department of social services] OFFICE OF TEMPORARY AND
DISABILITY ASSISTANCE, which [agreement] shall provide:
(I) for the utilization BY THE OFFICE OF TEMPORARY AND DISABILITY
ASSISTANCE of information obtained pursuant to subdivision one [hereof]
OF THIS SECTION, for the purpose of verifying eligibility for and enti-
tlement to amounts of benefits under the social services law, locating
absent parents or other persons legally responsible for the support of
applicants or recipients of public assistance and care under the social
services law and persons legally responsible for the support of a recip-
ient of services under section one hundred eleven-g of the social
services law and, in appropriate cases, establishing support obligations
pursuant to the social services law and the family court act, and for
the purpose of evaluating the effect on earnings of participation in
employment or training programs authorized pursuant to the social
services law by current recipients of public assistance and care and by
former recipients of public assistance and care, such agreement shall
further provide to the degree required by federal law for the commis-
S. 57--B 51 A. 157--B
sioner [of taxation and finance] and the [social services department]
OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE to provide information
obtained pursuant to subdivision one of this section to the federal
social security administration or to public agencies in other states
which administer programs under the food stamp act of nineteen hundred
seventy-seven or title I, II, IV-A, IV-D, X, XIV, XVI, or XIX of the
federal social security act and to take such other steps as may be
required by section one thousand one hundred thirty-seven of the social
security act or federal regulations promulgated thereunder; AND
(II) FOR THE UTILIZATION BY THE OFFICE OF TEMPORARY AND DISABILITY
ASSISTANCE OF INFORMATION OBTAINED PURSUANT TO SUBDIVISION ONE OF THIS
SECTION, WITH RESPECT TO THE PARENTS, THE STEPPARENTS, THE CHILD AND THE
SIBLINGS OF THE CHILD WHO WERE LIVING IN THE SAME HOUSEHOLD AS A CHILD
WHO IS IN THE CUSTODY, CARE AND CUSTODY OR CUSTODY AND GUARDIANSHIP OF A
LOCAL SOCIAL SERVICES DISTRICT OR OF THE OFFICE OF CHILDREN AND FAMILY
SERVICES DURING THE MONTH THAT THE COURT PROCEEDINGS LEADING TO THE
CHILD'S REMOVAL FROM THE HOUSEHOLD WERE INITIATED, OR THE WRITTEN
INSTRUMENT TRANSFERRING CARE AND CUSTODY OF THE CHILD PURSUANT TO THE
PROVISIONS OF SECTION THREE HUNDRED FIFTY-EIGHT-A OR THREE HUNDRED
EIGHTY-FOUR-A OF THE SOCIAL SERVICES LAW WAS SIGNED, PROVIDED HOWEVER,
THAT THE OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE SHALL ONLY USE
THE INFORMATION OBTAINED PURSUANT TO THIS SUBDIVISION, FOR THE PURPOSE
OF DETERMINING THE ELIGIBILITY OF SUCH CHILD FOR FEDERAL PAYMENTS FOR
FOSTER CARE AND ADOPTION ASSISTANCE PURSUANT TO THE PROVISIONS OF TITLE
IV-E OF THE FEDERAL SOCIAL SECURITY ACT. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, THE OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE IS
AUTHORIZED TO SHARE INFORMATION OBTAINED PURSUANT TO THIS SUBDIVISION
WITH ANY APPLICABLE SOCIAL SERVICES DISTRICT, PROVIDED HOWEVER, THAT IF
SUCH INFORMATION IS SHARED, THAT SUCH SOCIAL SERVICES DISTRICT SHALL
ONLY USE THE INFORMATION OBTAINED FOR THE PURPOSE OF DETERMINING THE
ELIGIBILITY OF SUCH CHILD FOR FEDERAL PAYMENTS FOR FOSTER CARE AND
ADOPTION ASSISTANCE PURSUANT TO THE PROVISIONS OF TITLE IV-E OF THE
FEDERAL SOCIAL SECURITY ACT.
S 4. Paragraph 3 of subsection (e) of section 697 of the tax law, as
separately amended by section 1 of part M of chapter 57 and section 45-f
of part C of chapter 58 of the laws of 2008, is amended to read as
follows:
(3) Nothing herein shall be construed to prohibit the department, its
officers or employees from furnishing information to the office of
temporary and disability assistance relating to the payment of the cred-
it for certain household and dependent care services necessary for gain-
ful employment under subsection (c) of section six hundred six of this
article and the earned income credit under subsection (d) of section six
hundred six of this article, or pursuant to a local law enacted by a
city having a population of one million or more pursuant to subsection
(f) of section thirteen hundred ten of this chapter, only to the extent
necessary to calculate qualified state expenditures under paragraph
seven of subdivision (a) of section four hundred nine of the federal
social security act or to document the proper expenditure of federal
temporary assistance for needy families funds under section four hundred
three of such act. The office of temporary and disability assistance may
redisclose such information to the United States department of health
and human services only to the extent necessary to calculate such quali-
fied state expenditures or to document the proper expenditure of such
federal temporary assistance for needy families funds. Nothing herein
shall be construed to prohibit the delivery by the commissioner to a
S. 57--B 52 A. 157--B
commissioner of jurors, appointed pursuant to section five hundred four
of the judiciary law, or, in counties within cities having a population
of one million or more, to the county clerk of such county, of a mailing
list of individuals to whom income tax forms are mailed by the commis-
sioner for the sole purpose of compiling a list of prospective jurors as
provided in article sixteen of the judiciary law. Provided, however,
such delivery shall only be made pursuant to an order of the chief
administrator of the courts, appointed pursuant to section two hundred
ten of the judiciary law. No such order may be issued unless such chief
administrator is satisfied that such mailing list is needed to compile a
proper list of prospective jurors for the county for which such order is
sought and that, in view of the responsibilities imposed by the various
laws of the state on the department, it is reasonable to require the
commissioner to furnish such list. Such order shall provide that such
list shall be used for the sole purpose of compiling a list of prospec-
tive jurors and that such commissioner of jurors, or such county clerk,
shall take all necessary steps to insure that the list is kept confiden-
tial and that there is no unauthorized use or disclosure of such list.
Furthermore, nothing herein shall be construed to prohibit the delivery
to a taxpayer or his or her duly authorized representative of a certi-
fied copy of any return or report filed in connection with his or her
tax or to prohibit the publication of statistics so classified as to
prevent the identification of particular reports or returns and the
items thereof, or the inspection by the attorney general or other legal
representatives of the state of the report or return of any taxpayer or
of any employer filed under section one hundred seventy-one-h of this
chapter, where such taxpayer or employer shall bring action to set aside
or review the tax based thereon, or against whom an action or proceeding
under this chapter or under this chapter and article eighteen of the
labor law has been recommended by the commissioner, the commissioner of
labor with respect to unemployment insurance matters, or the attorney
general or has been instituted, or the inspection of the reports or
returns required under this article by the comptroller or duly desig-
nated officer or employee of the state department of audit and control,
for purposes of the audit of a refund of any tax paid by a taxpayer
under this article, or the furnishing to the state department of labor
of unemployment insurance information obtained or derived from quarterly
combined withholding, wage reporting and unemployment insurance returns
required to be filed by employers pursuant to paragraph four of
subsection (a) of section six hundred seventy-four of this article, for
purposes of administration of such department's unemployment insurance
program, employment services program, federal and state employment and
training programs, employment statistics and labor market information
programs, worker protection programs, federal programs for which the
department has administrative responsibility or for other purposes
deemed appropriate by the commissioner of labor consistent with the
provisions of the labor law, and redisclosure of such information in
accordance with the provisions of sections five hundred thirty-six and
five hundred thirty-seven of the labor law or any other applicable law,
or the furnishing to the state office of temporary and disability
assistance of information obtained or derived from New York state
personal income tax returns as described in paragraph (b) of subdivision
two of section one hundred seventy-one-g of this chapter for the purpose
of reviewing support orders enforced pursuant to title six-A of article
three of the social services law to aid in the determination of whether
such orders should be adjusted, or the furnishing of information
S. 57--B 53 A. 157--B
obtained from the reports required to be submitted by employers regard-
ing newly hired or re-hired employees pursuant to section one hundred
seventy-one-h of this chapter to the state office of temporary and disa-
bility assistance, the state department of health, the state department
of labor and the workers' compensation board for purposes of adminis-
tration of the child support enforcement program, verification of indi-
viduals' eligibility for one or more of the programs specified in
subsection (b) of section eleven hundred thirty-seven of the federal
social security act and for other public assistance programs authorized
by state law, and administration of the state's employment security and
workers' compensation programs, and to the national directory of new
hires established pursuant to section four hundred fifty-three-A of the
federal social security act for the purposes specified in such section,
or the furnishing to the state office of temporary and disability
assistance of the amount of an overpayment of income tax and interest
thereon certified to the comptroller to be credited against past-due
support pursuant to section one hundred seventy-one-c of this chapter
and of the name and social security number of the taxpayer who made such
overpayment, or the disclosing to the commissioner of finance of the
city of New York, pursuant to section one hundred seventy-one-l of this
chapter, of the amount of an overpayment and interest thereon certified
to the comptroller to be credited against a city of New York tax warrant
judgment debt and of the name and social security number of the taxpayer
who made such overpayment, or the furnishing to the New York state high-
er education services corporation of the amount of an overpayment of
income tax and interest thereon certified to the comptroller to be cred-
ited against the amount of a default in repayment of any education loan
debt, including judgments, owed to the federal or New York state govern-
ment that is being collected by the New York state higher education
services corporation, and of the name and social security number of the
taxpayer who made such overpayment, or the furnishing to the state
department of health of the information required by paragraph (f) of
subdivision two and subdivision two-a of section two thousand five
hundred eleven of the public health law and by subdivision eight of
section three hundred sixty-six-a and paragraphs (b) and (d) of subdivi-
sion two of section three hundred sixty-nine-ee of the social services
law, or the furnishing to the state university of New York or the city
university of New York respectively or the attorney general on behalf of
such state or city university the amount of an overpayment of income tax
and interest thereon certified to the comptroller to be credited against
the amount of a default in repayment of a state university loan pursuant
to section one hundred seventy-one-e of this chapter and of the name and
social security number of the taxpayer who made such overpayment, or the
disclosing to a state agency, pursuant to section one hundred seventy-
one-f of this chapter, of the amount of an overpayment and interest
thereon certified to the comptroller to be credited against a past-due
legally enforceable debt owed to such agency and of the name and social
security number of the taxpayer who made such overpayment, or the
furnishing of employee and employer information obtained through the
wage reporting system, pursuant to 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, to the state office of temporary and
disability assistance, the department of health or to the state office
of the medicaid inspector general for the purpose of verifying eligibil-
ity for and entitlement to amounts of benefits under the social services
law or similar law of another jurisdiction, locating absent parents or
S. 57--B 54 A. 157--B
other persons legally responsible for the support of applicants for or
recipients of public assistance and care under the social services law
and persons legally responsible for the support of a recipient of
services under section one hundred eleven-g of the social services law
and, in appropriate cases, establishing support obligations pursuant to
the social services law and the family court act or similar provision of
law of another jurisdiction for the purpose of evaluating the effect on
earnings of participation in employment, training or other programs
designed to promote self-sufficiency authorized pursuant to the social
services law by current recipients of public assistance and care and by
former applicants and recipients of public assistance and care, (except
that with regard to former recipients, information which relates to a
particular former recipient shall be provided with client identifying
data deleted), TO THE STATE OFFICE OF TEMPORARY AND DISABILITY ASSIST-
ANCE FOR THE PURPOSE OF DETERMINING THE ELIGIBILITY OF ANY CHILD IN THE
CUSTODY, CARE AND CUSTODY OR CUSTODY AND GUARDIANSHIP OF A LOCAL SOCIAL
SERVICES DISTRICT OR OF THE OFFICE OF CHILDREN AND FAMILY SERVICES FOR
FEDERAL PAYMENTS FOR FOSTER CARE AND ADOPTION ASSISTANCE PURSUANT TO THE
PROVISIONS OF TITLE IV-E OF THE FEDERAL SOCIAL SECURITY ACT BY PROVIDING
INFORMATION WITH RESPECT TO THE PARENTS, THE STEPPARENTS, THE CHILD AND
THE SIBLINGS OF THE CHILD WHO WERE LIVING IN THE SAME HOUSEHOLD AS SUCH
CHILD DURING THE MONTH THAT THE COURT PROCEEDINGS LEADING TO THE CHILD'S
REMOVAL FROM THE HOUSEHOLD WERE INITIATED, OR THE WRITTEN INSTRUMENT
TRANSFERRING CARE AND CUSTODY OF THE CHILD PURSUANT TO THE PROVISIONS OF
SECTION THREE HUNDRED FIFTY-EIGHT-A OR THREE HUNDRED EIGHTY-FOUR-A OF
THE SOCIAL SERVICES LAW WAS SIGNED, PROVIDED HOWEVER THAT THE OFFICE OF
TEMPORARY AND DISABILITY ASSISTANCE SHALL ONLY USE THE INFORMATION
OBTAINED PURSUANT TO THIS SUBDIVISION FOR THE PURPOSE OF DETERMINING THE
ELIGIBILITY OF SUCH CHILD FOR FEDERAL PAYMENTS FOR FOSTER CARE AND
ADOPTION ASSISTANCE PURSUANT TO THE PROVISIONS OF TITLE IV-E OF THE
FEDERAL SOCIAL SECURITY ACT, and to the state department of labor, or
other individuals designated by the commissioner of labor, for the
purpose of the administration of such department's unemployment insur-
ance program, employment services program, federal and state employment
and training programs, employment statistics and labor market informa-
tion programs, worker protection programs, federal programs for which
the department has administrative responsibility or for other purposes
deemed appropriate by the commissioner of labor consistent with the
provisions of the labor law, and redisclosure of such information in
accordance with the provisions of sections five hundred thirty-six and
five hundred thirty-seven of the labor law, or the furnishing of infor-
mation, which is obtained from the wage reporting system operated pursu-
ant to section one hundred seventy-one-a of this chapter, as added by
chapter five hundred forty-five of the laws of nineteen hundred seven-
ty-eight, to the state office of temporary and disability assistance so
that it may furnish such information to public agencies of other juris-
dictions with which the state office of temporary and disability assist-
ance has an agreement pursuant to paragraph (h) or (i) of subdivision
three of section twenty of the social services law, and to the state
office of temporary and disability assistance for the purpose of
fulfilling obligations and responsibilities otherwise incumbent upon the
state department of labor, under section one hundred twenty-four of the
federal family support act of nineteen hundred eighty-eight, by giving
the federal parent locator service, maintained by the federal department
of health and human services, prompt access to such information as
required by such act, or to the state department of health to verify
S. 57--B 55 A. 157--B
eligibility under the child health insurance plan pursuant to subdivi-
sions two and two-a of section two thousand five hundred eleven of the
public health law, to verify eligibility under the medical assistance
and family health plus programs pursuant to subdivision eight of section
three hundred sixty-six-a and paragraphs (b) and (d) of subdivision two
of section three hundred sixty-nine-ee of the social services law, and
to verify eligibility for the program for elderly pharmaceutical insur-
ance coverage under title three of article two of the elder law, or to
the office of vocational and educational services for individuals with
disabilities of the education department, the commission for the blind
and visually handicapped and any other state vocational rehabilitation
agency, for purposes of obtaining reimbursement from the federal social
security administration for expenditures made by such office, commission
or agency on behalf of disabled individuals who have achieved economic
self-sufficiency or to the higher education services corporation for the
purpose of assisting the corporation in default prevention and default
collection of education loan debt, including judgments, owed to the
federal or New York state government; provided, however, that such
information shall be limited to the names, social security numbers, home
and/or business addresses, and employer names of defaulted or delinquent
student loan borrowers.
Provided, however, that with respect to employee information the
office of temporary and disability assistance shall only be furnished
with the names, social security account numbers and gross wages of those
employees who are (A) applicants for or recipients of benefits under the
social services law, or similar provision of law of another jurisdiction
(pursuant to an agreement under subdivision three of section twenty of
the social services law) or, (B) absent parents or other persons legally
responsible for the support of applicants for or recipients of public
assistance and care under the social services law or similar provision
of law of another jurisdiction (pursuant to an agreement under subdivi-
sion three of section twenty of the social services law), or (C) persons
legally responsible for the support of a recipient of services under
section one hundred eleven-g of the social services law or similar
provision of law of another jurisdiction (pursuant to an agreement under
subdivision three of section twenty of the social services law), or (D)
employees about whom wage reporting system information is being
furnished to public agencies of other jurisdictions, with which the
state office of temporary and disability assistance has an agreement
pursuant to paragraph (h) or (i) of subdivision three of section twenty
of the social services law, or (E) employees about whom wage reporting
system information is being furnished to the federal parent locator
service, maintained by the federal department of health and human
services, for the purpose of enabling the state office of temporary and
disability assistance to fulfill obligations and responsibilities other-
wise incumbent upon the state department of labor, under section one
hundred twenty-four of the federal family support act of nineteen
hundred eighty-eight, and, only if, the office of temporary and disabil-
ity assistance certifies to the commissioner that such persons are such
applicants, recipients, absent parents or persons legally responsible
for support or persons about whom information has been requested by a
public agency of another jurisdiction or by the federal parent locator
service and further certifies that in the case of information requested
under agreements with other jurisdictions entered into pursuant to
subdivision three of section twenty of the social services law, that
such request is in compliance with any applicable federal law. Provided,
S. 57--B 56 A. 157--B
further, that where the office of temporary and disability assistance
requests employee information for the purpose of evaluating the effects
on earnings of participation in employment, training or other programs
designed to promote self-sufficiency authorized pursuant to the social
services law, the office of temporary and disability assistance shall
only be furnished with the quarterly gross wages (excluding any refer-
ence to the name, social security number or any other information which
could be used to identify any employee or the name or identification
number of any employer) paid to employees who are former applicants for
or recipients of public assistance and care and who are so certified to
the commissioner by the commissioner of the office of temporary and
disability assistance. Provided, further, that with respect to employee
information, the department of health shall only be furnished with the
information required pursuant to the provisions of paragraph (f) of
subdivision two and subdivision two-a of section two thousand five
hundred eleven of the public health law and subdivision eight of section
three hundred sixty-six-a and paragraphs (b) and (d) of subdivision two
of section three hundred sixty-nine-ee of the social services law, with
respect to those individuals whose eligibility under the child health
insurance plan, medical assistance program, and family health plus
program is to be determined pursuant to such provisions and with respect
to those members of any such individual's household whose income affects
such individual's eligibility and who are so certified to the commis-
sioner or by the department of health. Provided, further, that wage
reporting information shall be furnished to the office of vocational and
educational services for individuals with disabilities of the education
department, the commission for the blind and visually handicapped and
any other state vocational rehabilitation agency only if such office,
commission or agency, as applicable, certifies to the commissioner that
such information is necessary to obtain reimbursement from the federal
social security administration for expenditures made on behalf of disa-
bled individuals who have achieved self-sufficiency. Reports and returns
shall be preserved for three years and thereafter until the commissioner
orders them to be destroyed.
S 5. Section 697 of the tax law is amended by adding a new subsection
(o) to read as follows:
(O) EXCHANGE OF INFORMATION WITH THE OFFICE OF TEMPORARY AND DISABILI-
TY ASSISTANCE.--NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,
THE DEPARTMENT SHALL FURNISH TO THE OFFICE OF TEMPORARY AND DISABILITY
ASSISTANCE, OR AS DESIGNATED BY THE COMMISSIONER OF THE OFFICE OF CHIL-
DREN AND FAMILY SERVICES, TO EMPLOYEES OF A LOCAL SOCIAL SERVICES
DISTRICT WHO ARE ENGAGED IN THE PROCESS OF DETERMINING THE ELIGIBILITY
OF CHILDREN IN THE CUSTODY, CARE AND CUSTODY OR CUSTODY AND GUARDIANSHIP
OF A LOCAL SOCIAL SERVICES DISTRICT FOR FEDERAL PAYMENTS FOR FOSTER CARE
AND ADOPTION ASSISTANCE PURSUANT TO THE PROVISIONS OF TITLE IV-E OF THE
FEDERAL SOCIAL SECURITY ACT, THE NAME, SOCIAL SECURITY NUMBER AND WAGES
OF THE PARENTS, THE STEPPARENTS, THE CHILD AND THE SIBLINGS OF THE CHILD
WHO WERE LIVING IN THE SAME HOUSEHOLD AS A CHILD WHO IS IN THE CUSTODY,
CARE AND CUSTODY OR CUSTODY AND GUARDIANSHIP OF A LOCAL SOCIAL SERVICES
DISTRICT OR OF THE OFFICE OF CHILDREN AND FAMILY SERVICES DURING THE
MONTH THAT THE COURT PROCEEDINGS LEADING TO THE CHILD'S REMOVAL FROM THE
HOUSEHOLD WERE INITIATED, OR THE WRITTEN INSTRUMENT TRANSFERRING CARE
AND CUSTODY OF THE CHILD PURSUANT TO THE PROVISIONS OF SECTION THREE
HUNDRED FIFTY-EIGHT-A OR THREE HUNDRED EIGHTY-FOUR-A OF THE SOCIAL
SERVICES LAW WAS SIGNED; PROVIDED HOWEVER, THAT THE OFFICE OF TEMPORARY
AND DISABILITY ASSISTANCE OR SUCH SOCIAL SERVICES DISTRICT SHALL ONLY
S. 57--B 57 A. 157--B
USE THE INFORMATION OBTAINED PURSUANT TO THIS SUBSECTION FOR THE PURPOSE
OF DETERMINING THE ELIGIBILITY OF SUCH CHILD FOR FEDERAL PAYMENTS FOR
FOSTER CARE AND ADOPTION ASSISTANCE PURSUANT TO THE PROVISIONS OF TITLE
IV-E OF THE FEDERAL SOCIAL SECURITY ACT.
S 6. This act shall take effect immediately.
PART W
Section 1. Notwithstanding the time period required for notice pursu-
ant to subdivision fifteen of section five hundred one of the executive
law, for the period April 1, 2009 through March 31, 2010, the office of
children and family services may, for the purposes of aligning their
capacity with their facility and service needs:
(a) close the following facilities: Great Valley residential center,
Cattaraugus residential center, Adirondack residential center, Rochester
community residential home, Syracuse community residential home, Albany
evening reporting center, Syracuse evening reporting center, Buffalo
evening reporting center, and Pyramid reception center;
(b) downsize the following facilities: Tryon residential center and
Allen residential center.
S 2. Nothing herein shall be construed to authorize the office of
children and family services to close or downsize additional facilities
not listed in subdivisions (a) and (b) of section one of this act,
pursuant to the provisions of this act.
S 3. This act shall take effect immediately and shall be deemed to be
repealed on April 1, 2010.
PART X
Intentionally omitted.
PART Y
Section 1. Paragraph (a) of subdivision 2 of section 131-a of the
social services law, as amended by chapter 77 of the laws of 1989, is
amended and three new paragraphs (a-1), (a-2) and (a-3) are added to
read as follows:
(a) [The] THROUGH JUNE THIRTIETH, TWO THOUSAND NINE, THE following
schedule shall be the standard of monthly need for determining eligibil-
ity for all categories of assistance in and by all social services
districts:
Number of Persons in Household
One Two Three Four Five Six
$112 $179 $238 $307 $379 $438
For each additional person in the household there shall be added an
additional amount of sixty dollars monthly.
(A-1) FOR THE PERIOD BEGINNING JULY FIRST, TWO THOUSAND NINE AND
ENDING JUNE THIRTIETH, TWO THOUSAND TEN, THE FOLLOWING SCHEDULE SHALL BE
THE STANDARD OF MONTHLY NEED FOR DETERMINING ELIGIBILITY FOR ALL CATEGO-
RIES OF ASSISTANCE IN AND BY ALL SOCIAL SERVICES DISTRICTS:
NUMBER OF PERSONS IN HOUSEHOLD
ONE TWO THREE FOUR FIVE SIX
$126 $201 $268 $345 $426 $492
FOR EACH ADDITIONAL PERSON IN THE HOUSEHOLD THERE SHALL BE ADDED AN
ADDITIONAL AMOUNT OF SIXTY-SEVEN DOLLARS MONTHLY.
S. 57--B 58 A. 157--B
(A-2) FOR THE PERIOD BEGINNING JULY FIRST, TWO THOUSAND TEN AND ENDING
JUNE THIRTIETH, TWO THOUSAND ELEVEN, THE FOLLOWING SCHEDULE SHALL BE THE
STANDARD OF MONTHLY NEED FOR DETERMINING ELIGIBILITY FOR ALL CATEGORIES
OF ASSISTANCE IN AND BY ALL SOCIAL SERVICES DISTRICTS:
NUMBER OF PERSONS IN HOUSEHOLD
ONE TWO THREE FOUR FIVE SIX
$141 $225 $300 $386 $477 $551
FOR EACH ADDITIONAL PERSON IN THE HOUSEHOLD THERE SHALL BE ADDED AN
ADDITIONAL AMOUNT OF SEVENTY-FIVE DOLLARS MONTHLY.
(A-3) FOR THE PERIOD BEGINNING JULY FIRST, TWO THOUSAND ELEVEN AND
THEREAFTER, THE FOLLOWING SCHEDULE SHALL BE THE STANDARD OF MONTHLY NEED
FOR DETERMINING ELIGIBILITY FOR ALL CATEGORIES OF ASSISTANCE IN AND BY
ALL SOCIAL SERVICES DISTRICTS:
NUMBER OF PERSONS IN HOUSEHOLD
ONE TWO THREE FOUR FIVE SIX
$158 $252 $335 $432 $533 $616
FOR EACH ADDITIONAL PERSON IN THE HOUSEHOLD THERE SHALL BE ADDED AN
ADDITIONAL AMOUNT OF EIGHTY-FOUR DOLLARS MONTHLY.
S 2. Paragraph (a) of subdivision 3 of section 131-a of the social
services law, as amended by section 12 of part B of chapter 436 of the
laws of 1997, is amended and three new paragraphs (a-1), (a-2) and (a-3)
are added to read as follows:
(a) [Persons] THROUGH JUNE THIRTIETH, TWO THOUSAND NINE, PERSONS and
families determined to be eligible by the application of the standard of
need prescribed by the provisions of subdivision two OF THIS SECTION,
less any available income or resources which are not required to be
disregarded by other provisions of this chapter, shall receive maximum
monthly grants and allowances in all social services districts, in
accordance with the following schedule, for public assistance:
Number of Persons in Household
One Two Three Four Five Six
$112 $179 $238 $307 $379 $438
For each additional eligible needy person in the household there shall
be an additional allowance of sixty dollars monthly.
(A-1) FOR THE PERIOD BEGINNING JULY FIRST, TWO THOUSAND NINE AND
ENDING JUNE THIRTIETH, TWO THOUSAND TEN, PERSONS AND FAMILIES DETERMINED
TO BE ELIGIBLE BY THE APPLICATION OF THE STANDARD OF NEED PRESCRIBED BY
THE PROVISIONS OF SUBDIVISION TWO OF THIS SECTION, LESS ANY AVAILABLE
INCOME OR RESOURCES WHICH ARE NOT REQUIRED TO BE DISREGARDED BY OTHER
PROVISIONS OF THIS CHAPTER, SHALL RECEIVE MAXIMUM MONTHLY GRANTS AND
ALLOWANCES IN ALL SOCIAL SERVICES DISTRICTS, IN ACCORDANCE WITH THE
FOLLOWING SCHEDULE, FOR PUBLIC ASSISTANCE:
NUMBER OF PERSONS IN HOUSEHOLD
ONE TWO THREE FOUR FIVE SIX
$126 $201 $268 $345 $426 $492
FOR EACH ADDITIONAL PERSON IN THE HOUSEHOLD THERE SHALL BE ADDED AN
ADDITIONAL AMOUNT OF SIXTY-SEVEN DOLLARS MONTHLY.
(A-2) FOR THE PERIOD BEGINNING JULY FIRST, TWO THOUSAND TEN AND ENDING
JUNE THIRTIETH, TWO THOUSAND ELEVEN, PERSONS AND FAMILIES DETERMINED TO
BE ELIGIBLE BY THE APPLICATION OF THE STANDARD OF NEED PRESCRIBED BY THE
PROVISIONS OF SUBDIVISION TWO OF THIS SECTION, LESS ANY AVAILABLE INCOME
OR RESOURCES WHICH ARE NOT REQUIRED TO BE DISREGARDED BY OTHER
PROVISIONS OF THIS CHAPTER, SHALL RECEIVE MAXIMUM MONTHLY GRANTS AND
ALLOWANCES IN ALL SOCIAL SERVICES DISTRICTS, IN ACCORDANCE WITH THE
FOLLOWING SCHEDULE, FOR PUBLIC ASSISTANCE:
NUMBER OF PERSONS IN HOUSEHOLD
S. 57--B 59 A. 157--B
ONE TWO THREE FOUR FIVE SIX
$141 $225 $300 $386 $477 $551
FOR EACH ADDITIONAL PERSON IN THE HOUSEHOLD THERE SHALL BE ADDED AN
ADDITIONAL AMOUNT OF SEVENTY-FIVE DOLLARS MONTHLY.
(A-3) FOR THE PERIOD BEGINNING JULY FIRST, TWO THOUSAND ELEVEN AND
THEREAFTER, PERSONS AND FAMILIES DETERMINED TO BE ELIGIBLE BY THE APPLI-
CATION OF THE STANDARD OF NEED PRESCRIBED BY THE PROVISIONS OF SUBDIVI-
SION TWO OF THIS SECTION, LESS ANY AVAILABLE INCOME OR RESOURCES WHICH
ARE NOT REQUIRED TO BE DISREGARDED BY OTHER PROVISIONS OF THIS CHAPTER,
SHALL RECEIVE MAXIMUM MONTHLY GRANTS AND ALLOWANCES IN ALL SOCIAL
SERVICES DISTRICTS, IN ACCORDANCE WITH THE FOLLOWING SCHEDULE, FOR
PUBLIC ASSISTANCE:
NUMBER OF PERSONS IN HOUSEHOLD
ONE TWO THREE FOUR FIVE SIX
$158 $252 $335 $432 $533 $616
FOR EACH ADDITIONAL PERSON IN THE HOUSEHOLD THERE SHALL BE ADDED AN
ADDITIONAL AMOUNT OF EIGHTY-FOUR DOLLARS MONTHLY.
S 3. Notwithstanding section one hundred fifty-three of the social
services law or any other inconsistent provision of law, for the period
beginning July first, two thousand nine and ending March thirty-first,
two thousand twelve, the office of temporary and disability assistance
shall reimburse social services districts for the additional incremental
expenditures for public assistance directly resulting from the changes
in standards provided for in section one and section two of this act,
after applying any applicable federal reimbursement. The office of
temporary and disability assistance shall develop a methodology for
determining the reimbursement to social services districts pursuant to
this section.
S 4. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2009.
PART Z
Section 1. Section 39 of part P2 of chapter 62 of the laws of 2003
amending the state finance law and other laws relating to authorizing
and directing the state comptroller to loan money to certain funds and
accounts, as amended by section 1 of part K of chapter 57 of the laws of
2008, is amended to read as follows:
S 39. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2003; provided,
however, that sections one, three, four, six, seven through fifteen, and
seventeen of this act shall expire March 31, 2004, when upon such date
the provisions of such sections shall be deemed repealed; and sections
thirty and thirty-one of this act shall expire December 31, [2009] 2011
and the amendments made to section 69-c of the state finance law by
section thirty-two of this act shall not affect the expiration and
repeal of such section and shall be deemed to be expired therewith.
S 2. This act shall take effect immediately.
PART AA
Section 1. Subparagraph (vi) of paragraph c of subdivision 4 of
section 297 of the executive law, as amended by chapter 166 of the laws
of 2000, is amended to read as follows:
(vi) assessing civil fines and penalties, [in cases of housing
discrimination only,] in an amount not to exceed fifty thousand dollars,
S. 57--B 60 A. 157--B
to be paid to the state by a respondent found to have committed an
unlawful discriminatory act, or not to exceed one hundred thousand
dollars to be paid to the state by a respondent found to have committed
an unlawful discriminatory act which is found to be willful, wanton or
malicious;
S 2. Subdivision 4 of section 297 of the executive law is amended by
adding a new paragraph e to read as follows:
E. ANY CIVIL PENALTY IMPOSED PURSUANT TO THIS SUBDIVISION SHALL BE
SEPARATELY STATED, AND SHALL BE IN ADDITION TO AND NOT REDUCE OR OFFSET
ANY OTHER DAMAGES OR PAYMENT IMPOSED UPON A RESPONDENT PURSUANT TO THIS
ARTICLE. IN CASES OF EMPLOYMENT DISCRIMINATION WHERE THE EMPLOYER HAS
FEWER THAN FIFTY EMPLOYEES, SUCH CIVIL FINE OR PENALTY MAY BE PAID IN
REASONABLE INSTALLMENTS, IN ACCORDANCE WITH REGULATIONS PROMULGATED BY
THE DIVISION. SUCH REGULATIONS SHALL REQUIRE THE PAYMENT OF REASONABLE
INTEREST RESULTING FROM THE DELAY, AND IN NO CASE PERMIT INSTALLMENTS TO
BE MADE OVER A PERIOD LONGER THAN THREE YEARS.
S 3. This act shall take effect on the ninetieth day after it shall
have become a law.
PART BB
Section 1. Subdivision 2 of section 904 of the labor law, as amended
by chapter 190 of the laws of 1990, is amended to read as follows:
2. Any contractor engaged in an asbestos project involving more than
two hundred sixty linear feet or more than one hundred sixty square feet
of asbestos or asbestos materials shall notify both the United States
Environmental Protection Agency, Region II, Air and Hazardous Material
Division and the commissioner in writing ten days prior to the commence-
ment of work on the project or, if emergency conditions make it impossi-
ble to provide ten days prior notice, as soon as practicable after iden-
tification of the project. The notice to the commissioner shall include
the following information: the name, address and asbestos handling
license number of the contractor working on the project; the address and
description of the building or area, including size, age and prior use
of the building or area; the amount of friable asbestos material present
in square feet and/or linear feet, if applicable; room designation
numbers or other local information where such asbestos material is found
unless such material is found throughout the entire structure; the
scheduled starting and completion dates for removal; the procedures and
equipment, including ventilating systems that will be employed; any
additional information which the commissioner may require; and shall be
accompanied by a project notification fee as follows:
Project Size/Linear Feet Fee
260-429 [$100] $200
430-824 [200] 400
825-1649 [500] 1,000
1650 or more [1000] 2,000
Project Size/Square Feet Fee
160-259 [$100] $200
260-499 [200] 400
500-999 [500] 1,000
1000 or more [1000] 2,000
S. 57--B 61 A. 157--B
S 2. Paragraph a of subdivision 8 of section 204 of the labor law, as
amended by section 3 of part A of chapter 57 of the laws of 2004, is
amended to read as follows:
a. All boilers which are inspected by a duly authorized insurance
company shall be exempt from inspection by the commissioner and by
cities which qualify under the provisions of subdivision seven of this
section, under the following conditions: (1) that inspections by the
insurance company are made with the same frequency as is required by
this section except that, for all such boilers located within a city
which qualifies under the provisions of subdivision seven of this
section, inspections are made with the same frequency as is required by
such city; (2) that the insurance company complies with the rules of the
commissioner; (3) that the inspectors of the insurance company hold
certificates of competency; (4) that the insurance company gives notice
to the owner or lessee of each boiler inspected listing all violations
of any provision of the rules of the commissioner; (5) that a certified
copy of the report of each inspection is filed with the commissioner or
the inspecting agency of such city, as the case may be, within twenty-
one days of the inspection, on such forms and in such manner as required
by the commissioner or the inspecting agency of such city, as the case
may be. A copy filed with the commissioner shall be accompanied by a
non-refundable fee of [fifty] ONE HUNDRED dollars paid for each boiler
inspected. If insurance is refused, cancelled or discontinued for the
boiler inspected the report shall so state, together with the reasons
therefor; the report shall also list any instances of the failure of an
owner or lessee of the boiler to comply with the rules of the commis-
sioner.
S 3. This act shall take effect immediately.
PART CC
Section 1. Subdivisions 1 and 2 of section 450 of the labor law,
subdivision 1 as amended by chapter 809 of the laws of 1949 and subdivi-
sion 2 as amended by chapter 1022 of the laws of 1970, are amended to
read as follows:
1. This article shall apply to persons engaged in the manufacture,
ownership, possession, storage, use, transportation, purchase, sale or
gift of explosives as defined in subdivision one of section four hundred
fifty-one OF THIS ARTICLE.
2. This article shall not apply to explosives while being transported
in conformity with federal law or regulations, nor except as may be
herein otherwise provided to persons who manufacture, own, possess,
store, use, transport, purchase, sell or give explosives within the
territorial boundaries of cities having more than one million inhabit-
ants, nor to ANY OF THE FOLLOWING WHILE IN THE PERFORMANCE OF THEIR
OFFICIAL DUTIES: the armed forces of the United States, the national
guard, the state guard and duly constituted police and firefighting
forces of the state and its civil and political subdivisions.
S 2. Section 451 of the labor law, as amended by chapter 809 of the
laws of 1949, subdivision 1 as amended by chapter 220 of the laws of
1974 and subdivision 11 as renumbered by chapter 1022 of the laws of
1970, is amended to read as follows:
S 451. Definitions. Whenever used in this article: 1. "Explosives"
means gunpowder, powders used for blasting, high explosives, blasting
materials, detonating fuses, detonators, PYROTECHNICS and other detonat-
ing agents, FIREWORKS AND DANGEROUS FIREWORKS AS DEFINED IN SECTION
S. 57--B 62 A. 157--B
270.00 OF THE PENAL LAW, smokeless powder and any chemical compound or
any mechanical mixture containing any oxidizing and combustible units,
or other ingredients in such proportions, quantities, or packing that
ignition by fire, friction, concussion, percussion or detonation of any
part thereof may CAUSE and is intended to cause an explosion, but shall
not include gasoline, kerosene, naphtha, turpentine, benzine, acetone,
ethyl ether, benzol [and all] OR quantities of black powder not exceed-
ing five pounds for use in firing of antique firearms or artifacts or
replicas thereof. Fixed ammunition and primers for small arms, [fire-
crackers,] PYROTECHNIC DEVICES WHICH ARE DESIGNED FOR AND BEING USED FOR
LEGITIMATE WILDLIFE MANAGEMENT OR CONTROLS, safety fuses and matches
shall not be deemed to be explosives when, [as may be determined by the
board in its rules] AS PROVIDED BY REGULATION, the individual units
contain any of the above-mentioned articles or substances in such limit-
ed quantity, of such nature and so packed that it is impossible to
produce an explosion of such units to the injury of life, limb or prop-
erty.
2. "Highway" means any public street, public highway, public alley or
navigable [stream] WATERWAY, which is open for traffic. Navigable
[streams] WATERWAYS shall be considered as only those [streams] suscep-
tible of being used, in their ordinary condition, as highways of
commerce.
3. "Railroad" or "railway" means any railroad [which] THAT carries
passengers OR FREIGHT for hire, but shall not include auxiliary tracks,
spurs and sidings installed and primarily used in serving any mine,
quarry or plant.
4. "Building" means any building regularly occupied in whole or in
part as a habitation for human beings, and any church, school house,
railway station or other building or place where people are accustomed
to live, work or assemble, but does not mean or include any of the
buildings of a manufacturing plant where the business of manufacturing
explosives is carried on.
5. "Explosives factory" means any building or other structure in which
the manufacture of explosives or any part of the manufacture thereof is
carried on.
6. "Magazine" means any building or other structure, other than an
explosives factory, used to store explosives.
7. "Efficient barricade" means natural features of the ground, a dense
woods, an artificial mound or a properly revetted wall of earth not less
than three feet thick at the top, spaced at least three feet at the
bottom from any explosives factory or magazine, the height of which is
such that any straight line drawn from the top of any side wall of the
explosives factory or magazine to the top of a building or to a point
twelve feet above the center of a railroad or highway to be protected
will pass through such intervening barricade.
8. "Person" includes any natural person, partnership, association or
corporation.
9. "Manufacturer" means any person who is engaged in the manufacture
or production of explosives.
10. "Dealer" means any person engaged in the business of buying and
selling explosives.
11. [A "farmer" is a person who occupies and cultivates land.] "PYRO-
TECHNICS" MEANS ANY COMBUSTIBLE OR EXPLOSIVE COMPOSITIONS OF MANUFAC-
TURED ARTICLES DESIGNED AND PREPARED FOR THE PURPOSE OF PRODUCING AUDI-
BLE OR VISIBLE EFFECTS THAT ARE COMMONLY REFERRED TO AS FIREWORKS.
S. 57--B 63 A. 157--B
S 3. Section 452 of the labor law, as amended by chapter 190 of the
laws of 1989, is amended to read as follows:
S 452. Packing and labeling. No person shall own, possess, store, deal
in, sell, give or purchase explosives unless the packing, or encasement,
and the marking and labeling of such explosives shall comply with the
[rules of the board] REGULATIONS PROMULGATED PURSUANT TO THIS ARTICLE.
S 4. Section 453 of the labor law, as added by chapter 809 of the laws
of 1949, the second undesignated paragraph as amended by chapter 190 of
the laws of 1989, is amended to read as follows:
S 453. Storage. No person shall store explosives except in a magazine
constructed [and], located AND CERTIFIED in accordance with the
provisions of this article and the [rules of the board and unless a
certificate, which] REGULATIONS PROMULGATED PURSUANT TO THIS ARTICLE.
THE MAGAZINE CERTIFICATE shall be attached to the magazine on the inside
[thereof, has been issued for] OF EACH such magazine. No person shall
store more than three hundred thousand pounds of explosives in any one
magazine at any time. EXPLOSIVES NOT STORED IN COMPLIANCE WITH THIS
SECTION SHALL BE DEEMED TO PRESENT A DANGER TO THE PUBLIC, INCLUDING BUT
NOT LIMITED TO, EMERGENCY RESPONDERS AND OTHER PERSONS LAWFULLY FREQUEN-
TING THE AREA AND AS SUCH, ARE SUBJECT TO SEIZURE AND DESTRUCTION PURSU-
ANT TO SUBDIVISION FIVE OF SECTION FOUR HUNDRED SIXTY OF THIS ARTICLE.
This section shall not apply to explosives while being legally blasted
or while legally in the custody of a common carrier awaiting shipment or
delivery to a consignee during the time permitted by federal law; nor to
the storage of such limited amount of sporting or smokeless powders as
may be permitted by the [rules of the board] REGULATIONS PROMULGATED
PURSUANT TO THIS ARTICLE.
S 5. Section 454 of the labor law, as amended by chapter 477 of the
laws of 1943, is amended to read as follows:
S 454. Construction of magazines. Unless otherwise prescribed by the
[board in its rules] REGULATIONS PROMULGATED PURSUANT TO THIS ARTICLE,
magazines in which explosives shall be lawfully kept or stored shall be
constructed of brick, concrete, [iron] METAL or wood covered with [iron]
METAL, and shall have no openings except for ventilation and entrance.
All EXPLOSIVE magazines, except those in mines and tunnels, shall be
located above ground. All EXPLOSIVE magazines shall be kept clean and
dry at all times.
S 6. Section 455 of the labor law, as amended by chapter 809 of the
laws of 1949, is amended to read as follows:
S 455. Magazine precautions. 1. No [person] INDIVIDUAL shall unlock
[or], open the doors of, OR ACCESS THE CONTENTS OF, EXPLOSIVE magazines,
except for the lawful storage or removal of explosives AND IN ACCORDANCE
WITH REGULATIONS OF THE COMMISSIONER. NO EMPLOYER SHALL ALLOW ANY INDI-
VIDUAL ACCESS TO THE EXPLOSIVE MAGAZINES OR EXPLOSIVES OF THE EMPLOYER
UNLESS A LICENSE HAS BEEN ISSUED TO THE INDIVIDUAL BY THE COMMISSIONER
AS PROVIDED IN THIS ARTICLE, OR THE INDIVIDUAL IS UNDER THE DIRECT
SUPERVISION OF THE LICENSE HOLDER.
No person shall have matches or fire of any kind in any magazine. No
person shall store or keep blasting caps, detonating or fulminating
caps, or detonators in a magazine in which any other type of explosive
is stored or kept. No person shall open any package of explosives within
fifty feet of any magazine, nor shall any explosives be kept in a maga-
zine except in the original containers, OR AS OTHERWISE PROVIDED BY
REGULATIONS PROMULGATED UNDER THIS ARTICLE. No person shall discharge
firearms within five hundred feet of a magazine or explosives factory,
or at or against any such building or magazine. Any theft or loss of
S. 57--B 64 A. 157--B
explosives from a storage magazine or otherwise, shall immediately be
reported to the [industrial] commissioner and the state or local police
or county sheriff.
S 7. Section 456 of the labor law, as amended by chapter 461 of the
laws of 1950, is amended to read as follows:
S 456. Location of magazines. The quantity of explosives that may be
stored in any explosives factory or magazine shall depend upon its
distances from the nearest building, railroad or highway or other maga-
zine. The distances that a quantity of explosives may be stored from the
nearest magazine, building, railroad or highway, shall be as determined
by the [rules of the board] REGULATIONS PROMULGATED PURSUANT TO THIS
ARTICLE. All such distances may be reduced one-half when the magazine,
building, railroad or highway to be protected is adequately screened
from the explosives factory or magazine by an efficient barricade as
defined in subdivision seven of section four hundred fifty-one OF THIS
ARTICLE.
S 8. The labor law is amended by adding a new section 457 to read as
follows:
S 457. RELOCATION OF MAGAZINES. 1. WHEN ANY MAGAZINE IS MOVED FROM THE
LOCATION FOR WHICH IT WAS CERTIFIED ACCORDING TO SECTION FOUR HUNDRED
FIFTY-SIX OF THIS ARTICLE, AND THE MAGAZINE IS OR IS INTENDED TO BE USED
FOR THE STORAGE OF EXPLOSIVES AND WILL BE IN THE NEW LOCATION FOR MORE
THAN TWENTY-FOUR HOURS, THE COMMISSIONER SHALL BE NOTIFIED AS TO THE NEW
LOCATION OF THE MAGAZINE. SUCH NOTIFICATION SHALL BE MADE NO LATER THAN
ONE BUSINESS DAY PRIOR TO THE MOVE. THE NOTIFICATION SHALL CONTAIN ALL
OF THE INFORMATION REQUIRED BY THE COMMISSIONER.
2. THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION SHALL NOT APPLY
WHERE THE RELOCATION HAS BEEN ORDERED BY POLICE, FIRE OR OTHER AUTHOR-
IZED EMERGENCY PERSONNEL, OR WHERE THE CONTINUED STORAGE IN THE CURRENT
LOCATION WOULD CONSTITUTE A THREAT TO LIFE OR PROPERTY. IN SUCH CASES
THE COMMISSIONER SHALL BE NOTIFIED AS SOON AS PRACTICABLE AFTER THE
RELOCATION BUT IN NO CASE MORE THAN TWO BUSINESS DAYS FOLLOWING SUCH
RELOCATION.
3. WHEN A MAGAZINE IS ABANDONED, SOLD OR REMOVED FROM SERVICE, THE
CERTIFICATE HOLDER SHALL NOTIFY THE COMMISSIONER NO LATER THAN THREE
BUSINESS DAYS FROM THE DATE OF SUCH ACTION AND SHALL SURRENDER THE
CERTIFICATE TO THE COMMISSIONER.
S 9. Section 458 of the labor law, as added by chapter 809 of the laws
of 1949, subdivisions 1 and 2 as amended by chapter 61 of the laws of
1989, subdivision 3 as amended by section 10 of part A of chapter 57 of
the laws of 2004, subdivision 4 as amended by chapter 164 of the laws of
2003, subdivisions 5, 6, 7 and 9 as added and subdivisions 10 and 11 as
renumbered by chapter 1022 of the laws of 1970 and subdivision 8 as
added by chapter 150 of the laws of 1971, is amended to read as follows:
S 458. Licenses and certificates. 1. No person shall purchase, own,
possess, transport or use explosives unless a license therefor shall
have been issued as provided in this article.
Application for such a license shall be made to the commissioner on
forms provided and shall contain such information as the commissioner
may require. Where the commissioner finds that the applicant has
complied with the requirements of this article and the rules promulgated
hereunder, the commissioner shall issue [a] SUCH license or renewal
thereof which shall be valid for NOT LESS THAN one year from the date of
issuance. Such application and each renewal thereof shall be accompanied
by a NON-REFUNDABLE fee of NOT LESS THAN fifty dollars [non-refundable]
to be payable to the commissioner.
S. 57--B 65 A. 157--B
2. No person shall manufacture, deal in, sell, give, TEST, or dispose
of explosives unless a license therefor shall have been issued to such
person for that purpose by the commissioner as provided in this article,
nor shall any person sell, give, TEST, or dispose of explosives to, or
manufacture explosives for any person who does not hold a license as
provided by subdivision one of this section.
Application for such a license[, which shall be renewed annually,]
shall be made to the commissioner on forms provided and shall contain
such information as the commissioner may require. The commissioner,
after investigation of the application, shall issue a license or renewal
thereof, which shall be valid for NOT LESS THAN one year from the date
of issuance, where the commissioner finds that the applicant has
complied with the requirements of this article and the rules promulgated
hereunder. Each application for such a license, or for its renewal,
shall be accompanied by a fee of NOT LESS THAN one hundred dollars non-
refundable to be payable to the commissioner.
3. No person shall keep or store explosives unless a certificate
therefor shall have been issued by the commissioner as [herein]
provided[, but this requirement shall not apply to the storage at any
one time by farmers of two hundred pounds or less of blasting explosives
for agricultural purposes] IN THIS SECTION.
Application for such a certificate shall be made to the commissioner
on forms provided and shall contain such information as the commissioner
may require. The commissioner, where it is found that the applicant has
complied with the requirements of this article, [and], the rules promul-
gated hereunder and all other applicable sections of this chapter and
regulations promulgated by the commissioner, shall issue a certificate
or a renewal thereof, which shall be valid for NOT LESS THAN one year
from the date of issuance. In addition to any other causes for revoca-
tion of a certificate hereinafter provided, the commissioner may revoke
or modify such certificate because of any change in the conditions under
which it was granted, or for failure to pay the [annual] REQUIRED fee
[hereinafter provided]. The owner or user of a magazine shall [annually]
pay to the commissioner [in advance] a fee[, subject to the discretion
of the commissioner and] OF not less than fifty dollars, which shall be
proportioned according to the quantity and type of explosives authorized
by the certificate to be stored in the magazine.
4. An application for a license or a certificate pursuant to [subdivi-
sion one, two or three of] this section [shall be sworn to under oath
and] shall contain information sufficient to identify the applicant, and
the purpose for which and the place where the explosives are to be used,
manufactured, dealt in, given, disposed of or stored, as the case may
be, and to demonstrate the eligibility of such applicant for the license
or certificate requested. The commissioner may require that the applica-
tion include, among other things, photographs, fingerprints and personal
references. Such fingerprints shall be submitted to the division of
criminal justice services for a state criminal history record check, as
defined in subdivision one of section three thousand thirty-five of the
education law, and may be submitted to the federal bureau of investi-
gation for a national criminal history record check. AN APPLICATION FOR
A LICENSE OR CERTIFICATE REQUIRED TO BE FILED WITH THE DEPARTMENT PURSU-
ANT TO THIS SECTION SHALL BE SIGNED BY THE APPLICANT AND AFFIRMED BY HIM
OR HER AS TRUE UNDER PENALTY OF PERJURY.
5. Before a license or certificate is issued, the commissioner shall
investigate the eligibility of the applicant. The commissioner shall
have the authority to request and receive from any department, division,
S. 57--B 66 A. 157--B
board, bureau, commission or agency of the state or local government
thereof such assistance and information as will enable [him] THE COMMIS-
SIONER TO properly and effectively [to] carry out [his] THE powers and
duties under this article.
6. (a) The investigation prescribed in subdivision five of this
section may include, but is not limited to the following:
(1) a personal interview of the applicant by a designated agent of the
commissioner if the commissioner is unable to make a determination on
the basis of the factors contained in the application;
(2) an examination as to the applicant's knowledge and ability with
respect to basic safety precautions in the possession, handling, stor-
age, MANUFACTURE and transportation of explosives, and for such purpose
the commissioner may prescribe tests which the applicant shall be
required to pass as a prerequisite to the issuance of the license or
certificate. The test may be administered by any person or agency
designated by the commissioner.
(b) The investigation prescribed in subdivision five of this section
shall include a report from the New York state identification and intel-
ligence system, and such other identification services of the state or
federal government as may be necessary or appropriate for this purpose.
7. The commissioner may waive any of the procedures set forth in PARA-
GRAPH (B) OF subdivision six [(a)] of this section with respect to any
applicant [who has a license or certificate which was issued pursuant to
this section at any time prior to March first, nineteen hundred seventy,
and which was legally valid and effective on such date. The commissioner
also may waive fingerprinting of an applicant who has a valid license
for a pistol or revolver in accordance with section 400.00 of the penal
law] FOR WHOM CRIMINAL HISTORY OR OTHER INFORMATION HAS BEEN OBTAINED
FROM ANY FEDERAL BUREAU OR AGENCY.
8. [Exceptions.] Except for the provisions of subdivision eleven OF
THIS SECTION, this section shall not apply to smokeless powder.
9. Within thirty days after the issuance of a license or certificate
under this section, the commissioner shall notify the chief executive
officer of the municipality where the licensee resides or where the
certificate holder has his OR HER place of business of the issuance of
such license or certificate, and provide such officer with such other
information pertaining thereto [as the board may from time to time
prescribe] AS THE COMMISSIONER MAY PRESCRIBE.
10. Agencies of the United States, the state and its political and
civil subdivisions which are subject to the requirements of this article
and which, in the exercise of their functions, are required to purchase,
own, store, use or transport explosives shall not be liable for the
payment of any fee required by this section.
11. No explosives shall be sold, given or delivered to any [person]
INDIVIDUAL under eighteen years of age, whether such [person] INDIVIDUAL
is acting for himself, HERSELF or for another person, nor shall any such
[person] INDIVIDUAL be eligible to obtain any license or certificate
required under this section.
S 10. Section 459 of the labor law, as added by chapter 809 of the
laws of 1949, subdivision 1 as amended by chapter 1022 of the laws of
1970, is amended to read as follows:
S 459. Denial or revocation of license or certificate. 1. A license
or certificate, [its] OR THE renewal [or continuation] THEREOF may be
denied where the commissioner has probable reason to believe, based on
knowledge or reliable information, or finds, after [due] investigation,
that the applicant or any officer, servant, agent or employee of the
S. 57--B 67 A. 157--B
applicant is not sufficiently reliable and experienced to be authorized
to own, possess, store, transport, use, manufacture, deal in, sell,
purchase or otherwise handle, as the case may be, explosives, lacks
suitable facilities therefor, has been convicted of a [crime for which
he has been sentenced to serve one or more years in prison] FELONY, is
disloyal or hostile to the United States [or], has been confined as a
patient or inmate in a public or private institution for the treatment
of mental diseases OR HAS BEEN CONVICTED UNDER SECTION FOUR HUNDRED
EIGHTY-FOUR OF THE GENERAL BUSINESS LAW. Whenever the commissioner
denies an application for a license or certificate or the renewal there-
of, [he shall,] within five days of such denial, [give] notice thereof
and the reasons therefor SHALL BE PROVIDED in writing to the applicant
[personally or by mail to the address given in the application]. Such
denial may be appealed to the commissioner who shall follow the proce-
dure provided by subdivision [three] FOUR of this section.
2. The commissioner may revoke any certificate or license on any
ground or grounds authorized in subdivision one of this section for the
denial of a license or certificate, or for a violation of the terms of
such license or certificate, or for a violation of any provision of this
article or [of the rules of the board] REGULATIONS PROMULGATED
HEREUNDER, or for non-compliance with any order issued by the commis-
sioner within the time specified in such order.
[Where the] THE commissioner MAY, WHERE HE OR SHE has probable reason
to believe, based on knowledge or reliable information, that a licensee
or certificate holder is disloyal to the United States, [he may] summar-
ily revoke the license or certificate or may[, in his discretion,] give
such licensee or certificate holder notice and opportunity to be heard
as provided in subdivision [three] FOUR of this section. Revocation of a
license or certificate for any other ground may be ordered only after
giving written notice and an opportunity to be heard to the holder ther-
eof. Such notice [may be given to the holder personally or by mail and]
shall specify the ground or grounds on which it is proposed to revoke
the license or certificate. When a license or certificate is revoked,
the commissioner may direct the SEIZURE AND/OR disposition of explosives
held by such licensee or certificate holder. Upon revocation of a
license or certificate by the commissioner, the holder thereof shall
surrender [his] THE license or certificate to the commissioner at once.
3. THE COMMISSIONER MAY SUMMARILY SUSPEND THE LICENSE OR CERTIFICATE
PENDING PROCEEDINGS FOR REVOCATION OR OTHER ACTION, WHERE HE OR SHE HAS
REASON TO BELIEVE, BASED ON KNOWLEDGE OR RELIABLE INFORMATION, THAT THE
CONTINUED POSSESSION OF A LICENSE OR CERTIFICATE POSES A DANGER TO
PUBLIC HEALTH, SAFETY OR WELFARE, AND INCORPORATES A FINDING TO THAT
EFFECT IN HIS OR HER ORDER. THESE PROCEEDINGS SHALL BE PROMPTLY INSTI-
TUTED AND DETERMINED. SUCH SUSPENSION SHALL BE EFFECTIVE ON THE DATE
SPECIFIED IN THE ORDER OR UPON SERVICE OF A CERTIFIED COPY OF SUCH ORDER
ON THE LICENSE OR CERTIFICATE HOLDER, WHICHEVER SHALL BE LATER.
[3. Hearings] 4. Unless, within fifteen days from the date of notice,
the applicant for a license or certificate or the recipient of a notice
stating that the commissioner proposes to revoke a license or certif-
icate held by him OR HER, shall file a written answer with the commis-
sioner denying the ground or grounds on which a license or certificate
has been denied OR NOT RENEWED or ground or grounds on which revocation
of a license or certificate is sought, and shall request a hearing, the
commissioner may make a final determination respecting the application
for a license or certificate, or may revoke a license or certificate
forthwith. If, within such fifteen days, the applicant, licensee or
S. 57--B 68 A. 157--B
certificate holder files such answer and request for hearing, the
commissioner shall schedule a hearing. The notice of hearing shall state
the time, place, and subject of the hearing, and shall be mailed to the
applicant, certificate holder or licensee at his OR HER last known
address at least five days before the date of hearing. Hearings shall be
held by the commissioner or his OR HER representative, and the appli-
cant, certificate holder or licensee may appear in person or may be
represented by an agent. After such hearing, the commissioner shall
render [his] A decision in writing.
S 11. Section 460 of the labor law, as added by chapter 809 of the
laws of 1949, is amended to read as follows:
S 460. Seizure, impounding, destruction or disposition of explosives.
1. The commissioner is hereby authorized and empowered, without applica-
tion to any court, to seize and impound any explosives found within this
state, except in cities having a population of more than one million
inhabitants, which are in apparent violation of any of the provisions of
this article, [rules of the board] REGULATIONS PROMULGATED HEREUNDER or
laws or regulations of the federal government, or which have been aban-
doned or lost, or where the commissioner has reason to believe that
public safety is endangered by such explosives. Such explosives may be
removed and transported by the commissioner and stored in magazines
provided or obtained for that purpose by the state or by the commission-
er.
2. The owner of such explosives may, within five days of such seizure,
make written demand upon the commissioner for a hearing. Upon such
demand, the commissioner shall give the owner written notice [in person
or by mail,] of the time and place of such hearing to be held not less
than ten days thereafter.
3. Where no hearing is demanded within the time herein prescribed or
where, after hearing, the commissioner finds that there has been a
violation of the provisions of this article, [rules of the board] REGU-
LATIONS PROMULGATED HEREUNDER or laws or regulations of the federal
government, or that public safety is endangered, [he] THE COMMISSIONER
may destroy or order the destruction of such explosives WITHOUT LIABIL-
ITY, or direct such other disposition of the explosives [as he deems
proper]. If the commissioner finds there has been no such violation and
that public safety has not been endangered, [he shall return] such
explosives SHALL BE RETURNED to the owner thereof.
4. Where such explosives have been abandoned or lost, and no claimant
has appeared within thirty days, demanded the return of the explosives
and proved, to the satisfaction of the commissioner, [his] THE CLAIM-
ANT'S title to and right of possession of such explosives, the commis-
sioner may destroy or direct the destruction thereof, or direct such
other disposition thereof as [he deems] IS DEEMED proper.
5. Any provision herein to the contrary notwithstanding, where, in the
opinion of the commissioner, the manufacture, condition, STORAGE, pack-
ing or location of explosives is such that its continued existence or
transportation is a danger to public safety, [he] THE COMMISSIONER may,
without hearing and without liability therefor to the owner thereof,
seize and destroy or direct the seizure and destruction of such
explosives.
S 12. Section 461 of the labor law, as added by chapter 809 of the
laws of 1949, subdivision 1 as amended by chapter 150 of the laws of
1971 and subdivision 3 as amended by chapter 1022 of the laws of 1970,
is amended to read as follows:
S. 57--B 69 A. 157--B
S 461. Record and notice of sales, deliveries or gifts. 1. Every
person selling, delivering [or], giving away [an explosive] OR OTHERWISE
TRANSFERRING OR DISPOSING OF EXPLOSIVES shall keep at his OR HER princi-
pal office or place of business within the state, a record of the trans-
action, including the name or type and quantity of the explosive, such
identification of the explosive as may be required by [rules of the
board] THE REGULATIONS PROMULGATED PURSUANT TO THIS ARTICLE, the date of
each sale, delivery [or], gift, TRANSFER OR DISPOSITION, the name and
business address of the purchaser, donee, RECIPIENT or person to whom
delivered, the number of the license [to own or possess explosives], if
such license is required by section four hundred fifty-eight of this
article, and the name and address of the person taking the explosives
away. A report of all such transactions, when requested [by him], shall
be submitted to the commissioner. Such record shall be open to
inspection by the commissioner or by federal, state and local enforce-
ment officers at all times. No person shall have in his OR HER
possession any explosives unless he OR SHE has a bill of sale or other
evidence of title thereto.
2. Any provision in this article to the contrary notwithstanding, no
person in a city having more than one million inhabitants shall ship or
transport or cause to be shipped or transported explosives from such
city to any other place within the state, unless such person shall, at
least twenty-four hours prior to such shipment, transmit to the commis-
sioner a statement in writing giving the weight, name or brand and type
of explosives, the name and address of the person to whom such
explosives are to be sold, shipped, transported or delivered and the
date thereof. UPON RECEIPT OF SUCH STATEMENT, THE COMMISSIONER SHALL
PROVIDE IMMEDIATE WRITTEN NOTICE OF SUCH SHIPMENT OR TRANSPORTATION OF
EXPLOSIVES TO THE MAYOR OF A CITY HAVING MORE THAN ONE MILLION INHABIT-
ANTS, OR TO THE DESIGNEE OF THE MAYOR. No person shall make any such
shipment except to a holder of a license issued hereunder.
3. No person within the state shall purchase, receive or accept deliv-
ery of explosives from any place outside the state, and no person shall
bring explosives into the state from any place outside the state,
unless, [in addition to holding a license issued hereunder, such person
shall, not more than twenty-four hours thereafter, transmit to the
commissioner by mail a written statement giving] HE OR SHE IS IN
POSSESSION OF A VALID LICENSE ISSUED BY THE COMMISSIONER. THE LICENSEE
RECEIVING THE EXPLOSIVES SHALL MAINTAIN A RECORD INCLUDING THE weight,
name or brand and type of the explosives, the name and address of the
shipper and the date of shipment, FOR A PERIOD OF THREE YEARS FROM THE
DATE OF RECEIPT OR TWO YEARS FROM THE DATE OF FINAL DISPOSITION OF THE
EXPLOSIVES WHICHEVER OCCURS LAST.
S 13. Section 462 of the labor law, as amended by chapter 190 of the
laws of 1989, is amended to read as follows:
S 462. Rules and regulations. The commissioner may make rules supple-
mental to this article as [he shall deem] DEEMED necessary or desirable
to assure the public safety as well as to provide reasonable and
adequate protection of the lives, health and safety of persons employed
in the manufacture, storage, handling [and], use, PURCHASE, SALE, DISPO-
SITION AND OWNERSHIP of explosives. The commissioner may prescribe such
regulations as [he may deem] ARE DEEMED necessary and proper for the
administration of this article. THE COMMISSIONER SHALL BY RULE ADOPT
THE CODES, STANDARDS AND RECOMMENDED PRACTICES PROMULGATED BY THE MOST
RECENT EDITION OF NATIONAL FIRE PROTECTION ASSOCIATION, 1123 AND 1126
STANDARDS ON FIREWORKS DISPLAYS AND USE OF PYROTECHNICS BEFORE A PROXI-
S. 57--B 70 A. 157--B
MATE AUDIENCE, IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE AND
ARTICLE TWENTY-EIGHT-D OF THE GENERAL BUSINESS LAW.
S 14. Section 463 of the labor law, as added by chapter 809 of the
laws of 1949, is amended to read as follows:
S 463. Review. All questions of fact arising under this article shall
be decided by the commissioner and there shall be no appeal from [his]
SUCH decision on any such question of fact[, but there shall be a right
of review by the board of standards and appeals of any decision of the
commissioner denying an application for a license or certificate, or
denying the renewal thereof, or revoking a license or certificate, as
provided in section one hundred ten, article three of the labor law].
UPON THE ENTRY OF AN ORDER ISSUED UNDER SECTIONS FOUR HUNDRED FIFTY-NINE
AND FOUR HUNDRED SIXTY OF THIS ARTICLE, ANY PARTY AGGRIEVED THEREBY MAY
COMMENCE A PROCEEDING FOR REVIEW THEREOF PURSUANT TO ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES WITHIN THIRTY DAYS
FROM THE NOTICE OF THE FILING OF THE SAID ORDER IN THE OFFICE OF THE
COMMISSIONER. SAID PROCEEDING SHALL BE COMMENCED DIRECTLY IN THE APPEL-
LATE DIVISION OF THE SUPREME COURT. NOTHING IN THIS SECTION SHALL IN ANY
WAY LIMIT, QUALIFY OR PREVENT THE COMMISSIONER FROM DESTROYING
EXPLOSIVES AS PROVIDED UNDER SECTION FOUR HUNDRED SIXTY OF THIS ARTICLE.
S 15. Section 464 of the labor law, as amended by chapter 307 of the
laws of 1984, is amended to read as follows:
S 464. [Penalties] COSTS AND PENALTIES. 1. IF THE COMMISSIONER
DIRECTS THE STORAGE, DESTRUCTION OR OTHER DISPOSITION OF EXPLOSIVES
PURSUANT TO THE PROVISIONS OF SECTION FOUR HUNDRED FIFTY-NINE OR FOUR
HUNDRED SIXTY OF THIS ARTICLE, THE COMMISSIONER MAY ISSUE AN ORDER WHICH
SHALL SET FORTH THE COSTS OF SUCH STORAGE, TRANSPORTATION, HANDLING,
DESTRUCTION OR OTHER DISPOSITION AND ASSESS SUCH COSTS AGAINST THE OWNER
OF SUCH EXPLOSIVES, WHICH SHALL BE IN ADDITION TO ANY OTHER PENALTIES
IMPOSED.
2. (A) IF THE COMMISSIONER DETERMINES THAT ANY PERSON HAS VIOLATED ANY
PROVISION OF THIS ARTICLE, SECTION FOUR HUNDRED EIGHTY-TWO OF THE GENER-
AL BUSINESS LAW RELATING TO BLASTERS AND PYROTECHNICIANS, OR ANY RULE OR
REGULATION PROMULGATED THEREUNDER, THE COMMISSIONER MAY ISSUE AN ORDER
WHICH SHALL DESCRIBE THE NATURE OF THE VIOLATION AND ASSESS SUCH PERSON
A CIVIL PENALTY OF UP TO TEN THOUSAND DOLLARS PER VIOLATION PER DAY
UNTIL THE VIOLATION IS CORRECTED. THE PENALTY AUTHORIZED PURSUANT TO
THIS PARAGRAPH SHALL BE PAID TO THE COMMISSIONER FOR DEPOSIT IN THE
TREASURY OF THE STATE. IN ASSESSING THE AMOUNT OF THE PENALTY, THE
COMMISSIONER SHALL GIVE DUE CONSIDERATION TO THE SIZE OF THE PERSON'S
BUSINESS, THE GOOD FAITH EFFORT OF THE PERSON, THE GRAVITY OF THE
VIOLATION, AND THE HISTORY OF PREVIOUS VIOLATIONS.
(B) WHENEVER THE COMMISSIONER ISSUES AN ORDER UNDER THIS SECTION
AGAINST A PERSON, THE COMMISSIONER SHALL SERVE NOTICE OF THE ORDER BY
REGISTERED MAIL UPON THE PERSON AT HIS OR HER LAST KNOWN ADDRESS. WITHIN
FIVE DAYS OF SERVICE OF THE ORDER, THE PERSON MAY MAKE WRITTEN DEMAND
UPON THE COMMISSIONER FOR A HEARING WHEREUPON THE COMMISSIONER SHALL
GIVE SUCH PERSON WRITTEN NOTICE OF THE TIME AND PLACE OF THE HEARING TO
BE HELD NOT LESS THAN TEN DAYS THEREAFTER.
(C) UPON THE ENTRY OF AN ORDER ISSUED FOLLOWING A HEARING UNDER THIS
SECTION, ANY PARTY AGGRIEVED BY AN ORDER ISSUED UNDER THIS SUBDIVISION
OR SUBDIVISION ONE OF THIS SECTION MAY COMMENCE A PROCEEDING FOR REVIEW
THEREOF PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND
RULES WITHIN THIRTY DAYS FROM THE NOTICE OF THE FILING OF THE SAID ORDER
IN THE OFFICE OF THE COMMISSIONER. SAID PROCEEDING SHALL BE COMMENCED
DIRECTLY IN THE APPELLATE DIVISION OF THE SUPREME COURT.
S. 57--B 71 A. 157--B
(D) PROVIDED THAT NO PROCEEDING FOR JUDICIAL REVIEW AS PROVIDED FOR IN
THIS SECTION SHALL THEN BE PENDING AND THE TIME FOR INITIATION OF SUCH
PROCEEDING SHALL HAVE EXPIRED, THE COMMISSIONER MAY FILE WITH THE COUNTY
CLERK OF THE COUNTY WHERE THE PERSON RESIDES OR HAS A PLACE OF BUSINESS,
THE ORDER OF THE COMMISSIONER, CONTAINING THE AMOUNT OF THE CIVIL PENAL-
TY. THE FILING OF SUCH ORDER OR DECISION SHALL HAVE THE FULL FORCE AND
EFFECT OF A JUDGMENT DULY DOCKETED IN THE OFFICE OF SUCH CLERK, THE
ORDER OR DECISION MAY BE ENFORCED BY AND IN THE NAME OF THE COMMISSIONER
IN THE SAME MANNER, AND WITH LIKE EFFECT, AS THAT PRESCRIBED BY THE
CIVIL PRACTICE LAW AND RULES FOR THE ENFORCEMENT OF A MONEY JUDGMENT.
(E) A CIVIL PENALTY PROVIDED FOR IN THIS SUBDIVISION SHALL BE IN ADDI-
TION TO AND MAY BE IMPOSED CONCURRENTLY WITH ANY OTHER PENALTY OR REMEDY
PROVIDED FOR IN THIS ARTICLE.
3. Any person violating any provision of this article, or any rule or
regulation made hereunder, shall be guilty of a class E felony;
provided, however, that any person who possesses an explosive without
being duly licensed or otherwise authorized to do so under the
provisions of this article shall be guilty of a class D felony. Whenev-
er, as a result of a plea bargaining agreement the charge is reduced to
a lesser offense, such offense may, in addition to any term of imprison-
ment prescribed by such offense, be punishable by a fine not to exceed
twenty-five hundred dollars.
S 16. Section 480 of the general business law, as added by chapter 754
of the laws of 1975, is amended to read as follows:
S 480. Legislative findings. The legislature hereby finds that the use
of lasers and radioactive materials, the operation of cranes [and], the
detonation of explosives, AND THE PREPARATION AND FIRING OF PYROTECHNICS
involve such elements of potential danger to the lives, health and safe-
ty of the citizens of this state and to their property that special
regulations are necessary to insure that only persons of proper ability
and experience shall engage in such uses and operations.
The legislature hereby declares that this article shall be deemed an
exercise of the police power of this state for the protection of the
lives, health and safety of citizens in this state and of their proper-
ty.
S 17. Section 481 of the general business law, as added by chapter
754 of the laws of 1975, subdivision 3 as amended by chapter 569 of the
laws of 1982 and subdivision 5 as amended by section 1 of part B of
chapter 58 of the laws of 2006, is amended to read as follows:
S 481. Definitions. As used in this article:
1. "Laser" means light amplification by simulated emission of radi-
ation.
2. "Radioactive material" means any material in any form that emits
ionizing radiation spontaneously. "Radiation equipment" means any equip-
ment or device which can emit ionizing or non-ionizing radiation.
3. "Crane" includes but is not limited to cranes and equipment of the
following types: a mobile, carrier-mounted, power-operated hoisting
machine utilizing a power-operated boom which moves laterally by rota-
tion of the machine on the carrier, tower cranes, hydraulic cranes and
power-operated derricks; provided, however, that "crane" shall not
include public utility company line trucks used by a public utility
company in the construction and maintenance of its generation, trans-
mission and distribution facilities.
4. "Blaster" means a person who performs the act of preparation for
detonation and the detonation of an explosive.
S. 57--B 72 A. 157--B
5. "PYROTECHNICIAN" MEANS A PERSON WHO PERFORMS THE PREPARATION FOR
AND THE FIRING OF PYROTECHNICS, AS DEFINED IN ARTICLE SIXTEEN OF THE
LABOR LAW.
6. "Commissioner" means the commissioner of labor of the state of New
York, except that any reference to the commissioner with respect to
radioactive material, as defined in this article, or radiation equip-
ment, as defined in this article, shall be a reference to the commis-
sioner of health of the state of New York.
S 18. Section 482 of the general business law, as amended by section 2
of part B of chapter 58 of the laws of 2006, is amended to read as
follows:
S 482. Licensing and registration. 1. No individual shall use lasers,
operate a crane [or], act as a blaster OR AS A PYROTECHNICIAN without
holding a valid certificate of competence issued by the commissioner of
labor.
2. No person shall possess or use any radioactive material without a
valid license issued by the commissioner of health. Every installation
and mobile source consisting of radiation equipment shall be registered
with the commissioner of health.
3. No employer, contractor or agent thereof shall knowingly permit any
individual to use lasers, operate a crane or act as a blaster OR AS A
PYROTECHNICIAN without holding a valid certificate of competence issued
by the commissioner of labor.
S 19. Paragraph a of subdivision 1 and subdivision 2 of section 483 of
the general business law, paragraph a of subdivision 1 as amended by
section 3 of part B of chapter 58 of the laws of 2006, subdivision 2 as
added by chapter 754 of the laws of 1975, are amended to read as
follows:
a. The commissioner of labor is hereby authorized and directed to
prescribe such rules and regulations as may be necessary and proper for
the administration and enforcement of this article with respect to
lasers, crane operators [and], blasters AND PYROTECHNICIANS.
2. Such regulations may provide for examinations, categories of
certificates, licenses, or registrations, age and experience require-
ments, payment of fees, and may also provide for such limitations and
exemptions as the commissioner finds necessary and proper. In the case
of blasters AND PYROTECHNICIANS, such regulations may require finger-
printing, and in the case of users of radioactive material, such regu-
lations may require the posting of a bond or other security.
S 20. Section 484 of the general business law, as added by chapter 754
of the laws of 1975, subdivision 1 as amended by section 4 of part B of
chapter 58 of the laws of 2006 and subdivision 2 as amended and subdivi-
sion 3 as added by chapter 569 of the laws of 1982, is amended to read
as follows:
S 484. Enforcement. 1. a. For the purpose of administering and enforc-
ing the provisions of this article with respect to lasers, cranes [and],
blasters AND PYROTECHNICIANS, the commissioner of labor shall have and
may use all of the powers conferred upon him or her by the labor law, in
addition to the powers conferred herein.
b. For the purpose of administering and enforcing the provisions of
this article with respect to radioactive material and radiation equip-
ment the commissioner of health shall have and may use all of the powers
conferred upon him or her by the public health law, in addition to the
powers conferred in this article.
2. [A violation of] ANY PERSON WHO VIOLATES any provision of this
article or of any rule or regulation of the commissioner promulgated
S. 57--B 73 A. 157--B
hereunder or of any rule or regulation promulgated pursuant to paragraph
b of subdivision two of section four hundred eighty-five of this article
shall be GUILTY OF a misdemeanor, AND UPON CONVICTION SHALL BE PUNISHED,
BY A FINE OF NOT MORE THAN ONE THOUSAND DOLLARS; FOR A SECOND OFFENSE BY
A FINE OF NOT LESS THAN ONE THOUSAND NOR MORE THAN THREE THOUSAND
DOLLARS, OR BY IMPRISONMENT FOR NOT MORE THAN ONE YEAR OR BY BOTH SUCH
FINE AND IMPRISONMENT; FOR A SUBSEQUENT OFFENSE BY A FINE OF NOT LESS
THAN THREE THOUSAND DOLLARS, OR BY IMPRISONMENT FOR NOT MORE THAN ONE
YEAR, OR BY BOTH SUCH FINE AND IMPRISONMENT.
3. Where the employer, contractor or agent thereof permitting a
violation of any provision of this article or of any rule or regulation
of the commissioner promulgated hereunder or of any rule or regulation
promulgated pursuant to paragraph b of subdivision two of section four
hundred eighty-five of this article shall be a corporation, then in
addition to the corporation, the officer or agent of such corporation
who knowingly permits the corporation to violate such provisions is
guilty of a misdemeanor; and upon conviction thereof shall be punished
for a first offense by a fine of not more than one [hundred] THOUSAND
dollars; for a second offense by a fine of not less than one [hundred]
THOUSAND nor more than [five hundred] THREE THOUSAND dollars, or by
imprisonment for not more than [thirty days] ONE YEAR or by both such
fine and imprisonment; for a subsequent offense by a fine of not less
than three [hundred] THOUSAND dollars or by imprisonment for not more
than [sixty days] ONE YEAR, or by both such fine and imprisonment.
S 21. Subdivisions 2, 3, 3-a and 4 of section 405.00 of the penal law,
subdivision 3-a as added by chapter 151 of the laws of 2002, are amended
to read as follows:
2. Permits for [public] FIREWORKS displays. Notwithstanding the
provisions of section 270.00 OF THIS CHAPTER, the permit authority of a
state park, county park, city, village or town may [upon application in
writing,] grant a permit for the [public] display of fireworks [by] TO
municipalities, fair associations, amusement parks, PERSONS, or organ-
izations of individuals THAT SUBMIT AN APPLICATION IN WRITING. The
application for such permit shall set forth:
(a) The name of the body sponsoring the display and the names of the
persons actually to be in charge of the firing of the display WHO SHALL
POSSESS A VALID CERTIFICATE OF COMPETENCE AS A PYROTECHNICIAN AS
REQUIRED UNDER THE GENERAL BUSINESS LAW AND ARTICLE SIXTEEN OF THE LABOR
LAW. THE PERMIT APPLICATION SHALL FURTHER CONTAIN A VERIFIED STATEMENT
FROM THE APPLICANT IDENTIFYING THE INDIVIDUALS WHO ARE AUTHORIZED TO
FIRE THE DISPLAY INCLUDING THEIR CERTIFICATE NUMBERS, AND THAT SUCH
INDIVIDUALS POSSESS A VALID CERTIFICATE OF COMPETENCE AS A PYROTECHNI-
CIAN.
(b) The date and time of day at which the display is to be held.
(c) The exact location planned for the display.
(d) [The age, experience and physical characteristics of the persons
who are to do the actual discharging of the fireworks.
(e)] The number and kind of fireworks to be discharged.
[(f)] (E) The manner and place of storage of such fireworks prior to
the display.
[(g)] (F) A diagram of the grounds on which the display is to be held
showing the point at which the fireworks are to be discharged, the
location of all buildings, highways and other lines of communication,
the lines behind which the audience will be restrained and the location
of all nearby trees, telegraph or telephone lines or other overhead
obstructions.
S. 57--B 74 A. 157--B
[(h)] (G) Such other information as the permit authority may deem
necessary to protect persons or property.
3. Applications for permits. All applications for permits for the
[public] display of fireworks shall be made at least five days in
advance of the date of the display and the permit shall contain
provisions that the actual point at which the fireworks are to be fired
[shall be at least two hundred feet from the nearest permanent building,
public highway or railroad or other means of travel and at least fifty
feet from the nearest above ground telephone or telegraph line, tree or
other overhead obstruction, that the audience at such display shall be
restrained behind lines at least one hundred and fifty feet from the
point at which the fireworks are discharged and only persons in active
charge of the display shall be allowed inside these lines, that all
fireworks that fire a projectile shall be so set up that the projectile
will go into the air as nearby as possible in a vertical direction,
unless such fireworks are to be fired from the shore of a lake or other
large body of water, when they may be directed in such manner that the
falling residue from the deflagration will fall into such lake or body
of water, that any fireworks that remain unfired after the display is
concluded shall be immediately disposed of in a way safe for the partic-
ular type of fireworks remaining, that no fireworks display shall be
held during any wind storm in which the wind reaches a velocity of more
than thirty miles per hour,] BE IN ACCORDANCE WITH THE RULES PROMULGATED
BY THE COMMISSIONER OF LABOR PURSUANT TO SECTION FOUR HUNDRED SIXTY-TWO
OF THE LABOR LAW AND that all the persons in actual charge of firing the
fireworks shall be over the age of eighteen years, competent and phys-
ically fit for the task, that there shall be at least two such operators
constantly on duty during the discharge and that at least two [sodaacid
or other] approved type fire extinguishers [of at least two and one-half
gallons capacity each] shall be kept at as widely separated points as
possible within the actual area of the display. The legislative body of
a state park, county park, city, village or town may provide for
approval of such permit by the head of the police or fire department or
both where there are such departments. No permit granted and issued
hereunder shall be transferable. After such permit shall have been
granted, sales, possession, use and distribution of fireworks for such
display shall be lawful solely therefor.
3-a. Notwithstanding the provisions of subdivision three of this
section, no permit may be issued to conduct a [public] display of fire-
works upon any property where the boundary line of such property is less
than five hundred yards from the boundary line of any property which is
owned, leased or operated by any breeder as defined in subdivision four
of section [two hundred forty-four] TWO HUNDRED FIFTY-ONE of the racing,
pari-mutuel wagering and breeding law.
4. Bonds. Before granting and issuing a permit for a [public] display
of fireworks as herein provided, the permit authority shall require an
adequate bond from the applicant therefor, unless it is a state park,
county park, city, village or town, [or from the person to whom a
contract for such display shall be awarded,] in a sum to be fixed by the
permit authority, which, however, shall not be less than [five thousand]
ONE MILLION dollars, conditioned for the payment of all damages, which
may be caused to a person or persons or to property, by reason of the
display so permitted and arising from any acts of the permittee, his
agents, employees, contractors or subcontractors. Such bond shall run to
the state park, county park, city, village or town in which the permit
is granted and issued and shall be for the use and benefit of any person
S. 57--B 75 A. 157--B
or persons or any owner or owners of any property so injured or damaged,
and such person or persons or such owner or owners are hereby authorized
to maintain an action thereon, which right of action also shall accrue
to the heirs, executors, administrators, successors or assigns of such
person or persons or such owner or owners. The permit authority may
accept, in lieu of such bond, an indemnity insurance policy with liabil-
ity coverage and indemnity protection equivalent to the terms and condi-
tions upon which such bond is predicated and for the purposes [herein]
provided IN THIS SECTION.
S 22. This act shall take effect immediately; provided that:
1. section eight of this act shall take effect on the thirtieth day
after it shall have become a law, and sections eighteen and twenty-one
of this act shall take effect on the one hundred eightieth day after it
shall have become a law;
2. all licenses and certificates issued pursuant to article 16 of the
labor law and article 28-D of the general business law prior to the
effective date of this act shall remain in full force and effect until
such licenses and certificates expire; and
3. sections fifteen and twenty of this act shall apply to offenses
committed on or after the effective date of such sections.
PART DD
Section 1. Section 484 of the general business law is amended by
adding a new subdivision 4 to read as follows:
4. (A) ANY PERSON WHO OPERATES A CRANE WITHOUT A CERTIFICATE OF COMPE-
TENCE ISSUED BY THE COMMISSIONER OF LABOR AS REQUIRED BY SECTION FOUR
HUNDRED EIGHTY-TWO OF THIS ARTICLE SHALL BE DEEMED TO HAVE VIOLATED THIS
ARTICLE. THE COMMISSIONER MAY IMPOSE A CIVIL PENALTY UPON SUCH PERSON OF
NO MORE THAN ONE THOUSAND DOLLARS FOR THE INITIAL VIOLATION, NO MORE
THAN TWO THOUSAND DOLLARS FOR THE SECOND VIOLATION, AND NO MORE THAN
THREE THOUSAND DOLLARS FOR A THIRD OR SUBSEQUENT VIOLATION.
(B) ANY EMPLOYER, CONTRACTOR OR AGENT THEREOF WHO WILLFULLY PERMITS A
PERSON TO OPERATE A CRANE WITHOUT A CERTIFICATE OF COMPETENCE ISSUED BY
THE COMMISSIONER OF LABOR AS REQUIRED BY SECTION FOUR HUNDRED EIGHTY-TWO
OF THIS ARTICLE SHALL BE DEEMED TO HAVE VIOLATED THIS ARTICLE. THE
COMMISSIONER MAY IMPOSE A CIVIL PENALTY UPON SUCH EMPLOYER, CONTRACTOR,
OR AGENT OF NO MORE THAN FIVE THOUSAND DOLLARS FOR THE INITIAL
VIOLATION, AND NO MORE THAN TEN THOUSAND DOLLARS FOR A SECOND OR SUBSE-
QUENT VIOLATION.
(C) WHEN TWO FINAL DETERMINATIONS HAVE BEEN RENDERED UNDER THIS
SECTION AGAINST A PERSON WHO OPERATES A CRANE IN VIOLATION OF THIS ARTI-
CLE, SUCH PERSON SHALL BE INELIGIBLE TO APPLY FOR A CERTIFICATE OF
COMPETENCE FROM THE COMMISSIONER OF LABOR FOR A PERIOD OF TWO YEARS FROM
THE DATE OF THE SECOND FINAL DETERMINATION.
S 2. This act shall take effect immediately and shall apply to
violations occurring on and after such effective date.
PART EE
Section 1. Section 604 of the education law is amended by adding a new
subdivision 12 to read as follows:
12. CONTINENTAL AIRLINES FLIGHT 3407 MEMORIAL SCHOLARSHIPS PURSUANT TO
SECTION SIX HUNDRED SIXTY-EIGHT-G OF THIS TITLE.
S 2. The education law is amended by adding a new section 668-g to
read as follows:
S. 57--B 76 A. 157--B
S 668-G. CONTINENTAL AIRLINES FLIGHT 3407 MEMORIAL SCHOLARSHIPS. 1.
ELIGIBLE GROUPS. NOTWITHSTANDING SUBDIVISIONS THREE AND FIVE OF SECTION
SIX HUNDRED SIXTY-ONE OF THIS PART, CHILDREN, SPOUSES AND FINANCIAL
DEPENDENTS OF PERSONS WHO DIED AS A DIRECT RESULT OF THE CRASH OF CONTI-
NENTAL AIRLINES FLIGHT 3407, IN CLARENCE, NEW YORK, ON FEBRUARY TWELFTH,
TWO THOUSAND NINE, SHALL BE ELIGIBLE TO RECEIVE A MEMORIAL SCHOLARSHIP
FOR THEIR ATTENDANCE AT AN INSTITUTION LOCATED WITHIN NEW YORK STATE.
2. AMOUNT. THE PRESIDENT SHALL GRANT ANNUAL SCHOLARSHIPS IN AMOUNTS
DETERMINED IN ACCORDANCE WITH SUBDIVISION TWO OF SECTION SIX HUNDRED
SIXTY-EIGHT-D OF THIS SUBPART.
3. DURATION. AWARDS UNDER THIS SECTION SHALL BE PAYABLE FOR EACH OF
NOT MORE THAN FOUR ACADEMIC YEARS OF UNDERGRADUATE STUDY OR FIVE ACADEM-
IC YEARS IF A PROGRAM NORMALLY REQUIRES FIVE YEARS, AS DEFINED BY THE
COMMISSIONER PURSUANT TO ARTICLE THIRTEEN OF THIS TITLE.
S 3. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2009, and shall
be applicable for awards made for the 2009-10 academic year and each
following academic year.
PART FF
Section 1. Subdivision 4 of section 903 of the private housing finance
law, as amended by section 1 of part II of chapter 59 of the laws of
2008, is amended to read as follows:
4. Contracts entered into hereunder with neighborhood preservation
companies shall be limited in duration to periods of one year, but may
thereafter be renewed, extended or succeeded by new contracts from year
to year in the discretion of the commissioner; they shall be limited in
amount to the sum of one hundred thousand dollars in a single year [and
to the aggregate sum of two million one hundred four thousand five
hundred dollars for a single neighborhood preservation company],
provided that in any year in which the aggregate sum of three hundred
thousand dollars shall have been reached and all succeeding years, the
annual contract amount shall be subject to a limit of ninety-seven thou-
sand five hundred dollars per year; they shall define with particularity
the neighborhood or portion thereof within which the neighborhood pres-
ervation activities shall be performed; they shall specify the nature of
the neighborhood preservation activities which shall be performed
including the approximate number of buildings, residential dwelling
units and local retail and service establishments which shall be
affected; they shall locate and describe, with as much particularity as
is reasonably possible, the buildings with respect to which such activ-
ities shall be performed during the contract term; and they shall speci-
fy the number of persons, salaries or rates of compensation and a
description of duties of those who shall be engaged by the neighborhood
preservation company to perform the activities embraced by the contract
together with a schedule of other anticipated expenses.
S 2. Subdivision 4 of section 1003 of the private housing finance law,
as amended by section 2 of part II of chapter 59 of the laws of 2008, is
amended to read as follows:
4. Contracts pursuant to this section shall be for a period of no more
than one year, but may be renewed or extended from year to year, and
shall provide for payment by the division of no more than one hundred
thousand dollars per year [and shall be limited to the aggregate sum of
two million one hundred four thousand five hundred dollars for a single
corporation], provided that in any year in which the aggregate sum of
S. 57--B 77 A. 157--B
three hundred thousand dollars shall have been reached and all succeed-
ing years, the annual contract amount shall be subject to a limit of
ninety-seven thousand five hundred dollars per year; they shall define
with particularity the region or portion thereof within which the hous-
ing preservation and community renewal activities shall be performed;
they shall specify the nature of the housing preservation and community
renewal activities which shall be performed including the approximate
number of buildings, residential dwelling units and local retail and
service establishments which shall be affected; they shall locate and
describe, with as much particularity as is reasonably possible, the
buildings with respect to which such activities shall be performed
during the contract term; and they shall specify the number of persons,
salaries or rates of compensation and a description of duties of those
who shall be engaged by the corporation to perform the activities
embraced by the contract together with a schedule of other anticipated
expenses.
S 3. This act shall take effect immediately.
PART GG
Section 1. Subdivision A of section 6221 of the education law is
amended by adding a new paragraph 4-a to read as follows:
4-A. NOTWITHSTANDING THE PROVISION OF ANY LAW, RULE OR REGULATION TO
THE CONTRARY, THE CITY UNIVERSITY SHALL BE ENTITLED TO ANNUALLY RECEIVE
AN APPORTIONMENT AND PAYMENT OF STATE ASSISTANCE EQUAL TO ALL MONEYS
DERIVED AS A RESULT OF THE TUITION INCREASE, CALCULATED AS THE DIFFER-
ENCE IN THE AMOUNT GENERATED USING THE TUITION RATES AUTHORIZED BY THE
TRUSTEES OF THE CITY UNIVERSITY FOR THE TWO THOUSAND EIGHT-TWO THOUSAND
NINE ACADEMIC YEAR AND THE AMOUNT GENERATED USING THE TUITION RATES
AUTHORIZED BY THE TRUSTEES OF THE CITY UNIVERSITY FOR THE TWO THOUSAND
NINE-TWO THOUSAND TEN ACADEMIC YEAR, PURSUANT TO THE FOLLOWING SCHEDULE:
FOR THE TWO THOUSAND NINE-TWO THOUSAND TEN ACADEMIC YEAR, THE CITY
UNIVERSITY SHALL RECEIVE AN AMOUNT EQUAL TO TWENTY PERCENT OF SUCH
TUITION INCREASE; FOR THE TWO THOUSAND TEN-TWO THOUSAND ELEVEN ACADEMIC
YEAR, THE CITY UNIVERSITY SHALL RECEIVE AN AMOUNT EQUAL TO THIRTY
PERCENT OF SUCH TUITION INCREASE; FOR THE TWO THOUSAND ELEVEN-TWO THOU-
SAND TWELVE ACADEMIC YEAR, THE CITY UNIVERSITY SHALL RECEIVE AN AMOUNT
EQUAL TO FORTY PERCENT OF SUCH TUITION INCREASE; AND FOR THE TWO THOU-
SAND TWELVE-TWO THOUSAND THIRTEEN ACADEMIC YEAR, THE CITY UNIVERSITY
SHALL RECEIVE AN AMOUNT EQUAL TO FIFTY PERCENT OF SUCH TUITION INCREASE.
SUCH APPORTIONMENT SHALL BE FOR THE ENHANCED INVESTMENT IN THE CITY
UNIVERSITY OF THE STATE OF NEW YORK AND SHALL BE USED TO SUPPLEMENT, NOT
SUPPLANT, GROSS SENIOR COLLEGE OPERATING BUDGET SUPPORT, UNLESS THE
DIRECTOR OF THE BUDGET DETERMINES THAT STATE FISCAL CONDITIONS PRECLUDE
SUCH AN OUTCOME AND, IN WHICH CASE, THE DIRECTOR SHALL SUBMIT A REPORT
REGARDING THE RECOMMENDED FUNDING LEVELS AND WHETHER THE TUITION
INCREASE APPORTIONMENT PROVISIONS OF THIS SUBDIVISION HAVE BEEN COMPLIED
WITH FOR THE CITY UNIVERSITY OF THE STATE OF NEW YORK TO THE CHAIRS OF
THE SENATE FINANCE COMMITTEE AND THE ASSEMBLY WAYS AND MEANS COMMITTEE
AND THE CHAIRS OF THE SENATE HIGHER EDUCATION COMMITTEE AND THE ASSEMBLY
HIGHER EDUCATION COMMITTEE NO LATER THAN FIFTEEN DAYS FOLLOWING THE
RELEASE OF THE EXECUTIVE BUDGET.
S 2. Section 355 of the education law is amended by adding a new
subdivision 8-b to read as follows:
8-B. NOTWITHSTANDING THE PROVISION OF ANY LAW, RULE OR REGULATION TO
THE CONTRARY, THE STATE UNIVERSITY SHALL BE ENTITLED TO ANNUALLY RECEIVE
S. 57--B 78 A. 157--B
AN APPORTIONMENT AND PAYMENT OF STATE ASSISTANCE EQUAL TO ALL MONEYS
DERIVED AS A RESULT OF THE TUITION INCREASE, CALCULATED AS THE DIFFER-
ENCE IN THE AMOUNT GENERATED USING THE TUITION RATES AUTHORIZED BY THE
STATE UNIVERSITY TRUSTEES FOR THE TWO THOUSAND SEVEN--TWO THOUSAND EIGHT
ACADEMIC YEAR AND THE AMOUNT GENERATED USING THE TUITION RATES AUTHOR-
IZED BY STATE UNIVERSITY TRUSTEES FOR THE TWO THOUSAND NINE--TWO THOU-
SAND TEN ACADEMIC YEAR, PURSUANT TO THE FOLLOWING SCHEDULE: FOR THE TWO
THOUSAND NINE--TWO THOUSAND TEN ACADEMIC YEAR, THE STATE UNIVERSITY
SHALL RECEIVE AN AMOUNT EQUAL TO TWENTY PERCENT OF SUCH TUITION
INCREASE; FOR THE TWO THOUSAND TEN--TWO THOUSAND ELEVEN ACADEMIC YEAR,
THE STATE UNIVERSITY SHALL RECEIVE AN AMOUNT EQUAL TO THIRTY PERCENT OF
SUCH TUITION INCREASE; FOR THE TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE
ACADEMIC YEAR, THE STATE UNIVERSITY SHALL RECEIVE AN AMOUNT EQUAL TO
FORTY PERCENT OF SUCH TUITION INCREASE; AND FOR THE TWO THOUSAND
TWELVE--TWO THOUSAND THIRTEEN ACADEMIC YEAR, THE STATE UNIVERSITY SHALL
RECEIVE AN AMOUNT EQUAL TO FIFTY PERCENT OF SUCH TUITION INCREASE. SUCH
APPORTIONMENT SHALL BE FOR THE ENHANCED INVESTMENT IN THE STATE UNIVER-
SITY OF THE STATE OF NEW YORK AND SHALL BE USED TO SUPPLEMENT, NOT
SUPPLANT, STATE GROSS GENERAL FUND SUPPORT, UNLESS THE DIRECTOR OF THE
BUDGET DETERMINES THAT STATE FISCAL CONDITIONS PRECLUDE SUCH AN OUTCOME
AND, IN WHICH CASE, THE DIRECTOR SHALL SUBMIT A REPORT REGARDING THE
RECOMMENDED FUNDING LEVELS AND WHETHER THE TUITION INCREASE APPORTION-
MENT PROVISIONS OF THIS SUBDIVISION HAVE BEEN COMPLIED WITH FOR THE
STATE UNIVERSITY OF THE STATE OF NEW YORK TO THE CHAIRS OF THE SENATE
FINANCE COMMITTEE AND THE ASSEMBLY WAYS AND MEANS COMMITTEE AND THE
CHAIRS OF THE SENATE HIGHER EDUCATION COMMITTEE AND THE ASSEMBLY HIGHER
EDUCATION COMMITTEE NO LATER THAN FIFTEEN DAYS FOLLOWING THE RELEASE OF
THE EXECUTIVE BUDGET.
S 3. This act shall take effect April 1, 2009.
PART HH
Section 1. Subdivision B of section 6221 of the education law, as
amended by chapter 87 of the laws of 2002, is amended to read as
follows:
B. Senior college capital costs. Commencing with the twelve-month
period beginning July first, nineteen hundred eighty-two and thereafter,
the state shall pay one hundred per centum of capital costs exclusive of
those financed pursuant to the provisions of article one hundred twen-
ty-five-B of this chapter, of the senior colleges of the city university
of New York, provided however that commencing with the twelve month
period beginning July first, nineteen hundred eighty-two and thereafter,
the state shall pay one hundred per centum of capital costs exclusive of
those financed pursuant to the provisions of article one hundred twen-
ty-five-B of this chapter, of the college of Staten Island, New York
city college of technology and, commencing with the twelve month period
beginning July first, [nineteen hundred ninety-four] TWO THOUSAND NINE
and thereafter, [the state shall pay to the city university of New York
fifty per centum of the capital costs of] Medgar Evers college,
provided, however, that appropriations authorizing such costs have been
approved by the legislature. The advancement of capital projects pursu-
ant to this subdivision shall be undertaken only in accordance with the
provisions of section ninety-three of the state finance law. [The
advancement of capital projects at Medgar Evers college shall require
the prior approval of the mayor of the city of New York.]
S. 57--B 79 A. 157--B
S 2. Paragraph (i) of subdivision E of section 6221 of the education
law, as added by chapter 170 of the laws of 1994, is amended to read as
follows:
(i) in addition to the amounts specified in subparagraph e of para-
graph two of subdivision A of this section, the city of New York shall
annually appropriate in its expense budget and pay to the city universi-
ty of New York as operating aid in support of the programs and services,
an amount for each full-time equivalent student in the associate degree
program of the college equal to the amount the city of New York is
appropriating and paying for each full-time equivalent student in the
community colleges; AND
S 3. Paragraph (ii) of subdivision E of section 6221 of the education
law is REPEALED and paragraph (iii) is renumbered paragraph (ii).
S 4. This act shall take effect immediately, provided that no
provision of this act shall be construed to affect the amounts appropri-
ated on or before June 30, 2009 by either the state of New York or the
city of New York for the capital costs of Medgar Evers college.
PART II
Section 1. Section 9 of chapter 420 of the laws of 2002 amending the
education law relating to the profession of social work, as amended by
chapter 433 of the laws of 2003, is amended to read as follows:
S 9. Nothing in this act shall prohibit or limit the activities or
services on the part of any person in the employ of a program or service
operated, regulated, funded, or approved by the department of mental
hygiene or the office of children and family services, or a local
[government] GOVERNMENTAL unit as that term is defined in article 41 of
the mental hygiene law or a social services district as defined in
section 61 of the social services law, provided, however, this section
shall not authorize the use of any title authorized pursuant to article
154 of the education law, except that this section shall be deemed
repealed on [January 1, 2010] JUNE 1, 2010.
S 2. Section 17-a of chapter 676 of the laws of 2002 amending the
education law relating to defining the practice of psychology, as
amended by chapter 419 of the laws of 2003, is amended to read as
follows:
S 17-a. Nothing in this act shall prohibit or limit the activities or
services on the part of any person in the employ of a program or service
operated, regulated, funded, or approved by the department of mental
hygiene or the office of children and family services, or a local
[government] GOVERNMENTAL unit as that term is defined in article 41 of
the mental hygiene law or a social services district as defined in
section 61 of the social services law, provided, however, this section
shall not authorize the use of any title authorized pursuant to article
153 or 163 of the education law, except as otherwise provided by such
articles, except that this section shall be deemed repealed on [January
1, 2010] JUNE 1, 2010.
S 3. This act shall take effect April 1, 2009.
PART JJ
Section 1. The office of children and family services shall continue
the demonstration project, established pursuant to part G of chapter 58
of the laws of 2006, as amended, in local social services districts
selected by the office of children and family services to determine best
S. 57--B 80 A. 157--B
practices in portable information technology for child protective
services caseworkers to improve the workload of the child protective
workforce, including but not limited to the purchase of new information
technology, such as laptop computers, personal digital assistants
(PDAs), and cellular phones, that permits caseworkers to work from field
locations while investigating allegations of child abuse and maltreat-
ment. The commissioner of the office of children and family services
shall submit a report to the governor, the temporary president of the
senate and the speaker of the assembly, no later than January 15, 2010,
detailing which local social services districts participated in such
demonstration project, the impact by district of such demonstration
project on caseworker efficiency and productivity, and the impact on
caseload for caseworkers with such technology by district.
S 2. This act shall take effect immediately and shall expire and be
deemed repealed April 1, 2010.
PART KK
Section 1. Flexible fund for family services. Notwithstanding any
other provision of law to the contrary, where an appropriation is made
by a chapter of the laws of 2009 to the office of temporary and disabil-
ity assistance under the temporary and disability assistance program
from the special revenue fund - federal aid to localities, federal
health and human services fund - 265 "for allocation to local social
services districts for the flexible fund for family services", subse-
quent to the expenditures of such appropriations, the office of tempo-
rary and disability assistance shall make available on the agency web
site selected data measures on selected programs and services funded by
the "flexible fund for family services", including but not limited to
TANF Services, TANF employment services and state administered contracts
as reflected in original plans submitted by local social services
districts to program that portion of their flexible fund for family
services allocations. In addition, the office of children and family
services shall make available programmatic descriptions for all other
programs and services listed under the categories identified as child
welfare other than title XX transfer and title XX transfer below 200% as
listed in the flexible fund for family services flexible fund plan
summary.
S 2. This act shall take effect immediately.
PART A-1
Section 1. Subparagraph (A) of paragraph 1 of subsection (b) of
section 605 of the tax law, as amended by chapter 760 of the laws of
1992, is amended to read as follows:
(A) who is domiciled in this state, unless (i) [he] THE TAXPAYER main-
tains no permanent place of abode in this state, maintains a permanent
place of abode elsewhere, and spends in the aggregate not more than
thirty days of the taxable year in this state, or (ii) (I) within any
period of five hundred forty-eight consecutive days [he] THE TAXPAYER is
present in a foreign country or countries for at least four hundred
fifty days, and (II) during [such] THE period of five hundred forty-
eight consecutive days [he is] THE TAXPAYER, THE TAXPAYER'S SPOUSE
(UNLESS THE SPOUSE IS LEGALLY SEPARATED) AND THE TAXPAYER'S MINOR CHIL-
DREN ARE not present in this state for more than ninety days [and does
not maintain a permanent place of abode in this state at which his
S. 57--B 81 A. 157--B
spouse (unless such spouse is legally separated) or minor children are
present for more than ninety days], and (III) during the nonresident
portion of the taxable year with or within which [such] THE period of
five hundred forty-eight consecutive days begins and the nonresident
portion of the taxable year with or within which [such] THE period ends,
[he] THE TAXPAYER is present in this state for a number of days which
does not exceed an amount which bears the same ratio to ninety as the
number of days contained in [such] THAT portion of the taxable year
bears to five hundred forty-eight, or
S 2. Paragraph 1 of subsection (a) of section 1305 of the tax law, as
amended by chapter 790 of the laws of 1978, is amended to read as
follows:
(1) who is domiciled in the city wherein the tax is imposed, unless
(A) [he] THE TAXPAYER maintains no permanent place of abode in [such]
THE city, maintains a permanent place of abode elsewhere, and spends in
the aggregate not more than thirty days of the taxable year in [such]
THE city, or (B) (i) within any period of five hundred forty-eight
consecutive days [he] THE TAXPAYER is present in a foreign country or
countries for at least four hundred fifty days, and (ii) during such
period of five hundred forty-eight consecutive days [he is] THE TAXPAY-
ER, THE TAXPAYER'S SPOUSE (UNLESS THE SPOUSE IS LEGALLY SEPARATED) AND
THE TAXPAYER'S MINOR CHILDREN ARE not present in [such] THE city for
more than ninety days [and does not maintain a permanent place of abode
in such city at which his spouse (unless such spouse is legally sepa-
rated) or minor children are present for more than ninety days], and
(iii) during any period of less than twelve months, which would be
treated as a separate taxable period pursuant to section thirteen
hundred seven, and which period is contained within [such] THE period of
five hundred forty-eight consecutive days, [he] THE TAXPAYER is present
in [such] THE city for a number of days which does not exceed an amount
which bears the same ratio to ninety as the number of days contained in
[such] THAT period of less than twelve months bears to five hundred
forty-eight, or
S 3. Subparagraph (A) of paragraph 1 of subdivision (b) of section
11-1705 of the administrative code of the city of New York, as amended
by chapter 333 of the laws of 1987, is amended to read as follows:
(A) who is domiciled in this city, unless (i) [he] THE TAXPAYER main-
tains no permanent place of abode in this city, maintains a permanent
place of abode elsewhere, and spends in the aggregate not more than
thirty days of the taxable year in this city, or (ii) (I) within any
period of five hundred forty-eight consecutive days [he] THE TAXPAYER is
present in a foreign country or countries for at least four hundred
fifty days, and (II) during [such] THE period of five hundred forty-
eight consecutive days [he is] THE TAXPAYER, THE TAXPAYER'S SPOUSE
(UNLESS THE SPOUSE IS LEGALLY SEPARATED) AND THE TAXPAYER'S MINOR CHIL-
DREN ARE not present in this city for more than ninety days [and does
not maintain a permanent place of abode in this city at which his spouse
(unless such spouse is legally separated) or minor children are present
for more than ninety days], and (III) during any period of less than
twelve months, which would be treated as a separate taxable period
pursuant to section 11-1754, and which period is contained within [such]
THE period of five hundred forty-eight consecutive days, [he] THE
TAXPAYER is present in this city for a number of days which does not
exceed an amount which bears the same ratio to ninety as the number of
days contained in [such] THAT period of less than twelve months bears to
five hundred forty-eight, or
S. 57--B 82 A. 157--B
S 4. Paragraph 1 of subsection (a) of section 1325 of the tax law, as
added by chapter 345 of the laws of 1984, is amended to read as follows:
(1) who is domiciled in the city wherein the city income tax surcharge
is imposed pursuant to the authority of this article, unless (A) [he]
THE TAXPAYER maintains no permanent place of abode in such city, main-
tains a permanent place of abode elsewhere, and spends in the aggregate
not more than thirty days of the taxable year in [such] THE city, or
(B)(i) within any period of five hundred forty-eight consecutive days
[he is] THE TAXPAYER, THE TAXPAYER'S SPOUSE (UNLESS THE SPOUSE IS LEGAL-
LY SEPARATED) AND THE TAXPAYER'S MINOR CHILDREN ARE present in a foreign
country or countries for at least four hundred fifty days, and (ii)
during [such] THE period of five hundred forty-eight consecutive days
[he] THE TAXPAYER is not present in [such] THE city for more than ninety
days [and does not maintain a permanent place of abode in such city at
which his spouse (unless such spouse is legally separated) or minor
children are present for more than ninety days], and (iii) during any
period of less than twelve months, which would be treated as a separate
taxable period pursuant to section thirteen hundred twenty-seven of this
article, and which period is contained within [such] THE period of five
hundred forty-eight consecutive days, [he] THE TAXPAYER is present in
[such] THE city for a number of days which does not exceed an amount
which bears the same ratio to ninety as the number of days contained in
[such] THAT period of less than twelve months bears to five hundred
forty-eight, or
S 5. Paragraph 1 of subsection (f) of section 1 contained in
subsection (c) of section 1340 of the tax law, as added by chapter 345
of the laws of 1984, is amended to read as follows:
(1) who is domiciled in the city, unless (A) [he] THE TAXPAYER main-
tains no permanent place of abode in the city, maintains a permanent
place of abode elsewhere, and spends in the aggregate not more than
thirty days of the taxable year in the city, or (B) (i) within any peri-
od of five hundred forty-eight consecutive days [he] THE TAXPAYER is
present in a foreign country or countries for at least four hundred
fifty days, and (ii) during such period of five hundred forty-eight
consecutive days [he is] THE TAXPAYER, THE TAXPAYER'S SPOUSE (UNLESS THE
SPOUSE IS LEGALLY SEPARATED) AND THE TAXPAYER'S MINOR CHILDREN ARE not
present in the city for more than ninety days [and does not maintain a
permanent place of abode in the city at which his spouse (unless such
spouse is legally separated) or minor children are present for more than
ninety days], and (iii) during any period of less than twelve months,
which would be treated as a separate taxable period based on a change of
resident status, and which period is contained within [such] THE period
of five hundred forty-eight consecutive days, [he] THE TAXPAYER is pres-
ent in the city for a number of days which does not exceed an amount
which bears the same ratio to ninety as the number of days contained in
[such] THAT period of less than twelve months bears to five hundred
forty-eight, or
S 6. This act shall take effect immediately and apply to taxable years
beginning on or after January 1, 2009.
PART B-1
Section 1. Subdivision (a) of section 1500 of the tax law, as amended
by chapter 188 of the laws of 2003, is amended to read as follows:
(a) The term "insurance corporation" includes a corporation, associ-
ation, joint stock company or association, person, society, aggregation
S. 57--B 83 A. 157--B
or partnership, by whatever name known, doing an insurance business,
and, notwithstanding the provisions of section fifteen hundred twelve of
this article, shall include (1) a risk retention group as defined in
subsection (n) of section five thousand nine hundred two of the insur-
ance law, (2) the state insurance fund and (3) a corporation, associ-
ation, joint stock company or association, person, society, aggregation
or partnership doing an insurance business as a member of the New York
insurance exchange described in section six thousand two hundred one of
the insurance law. The definition of the "state insurance fund"
contained in this subdivision shall be limited in its effect to the
provisions of this article and the related provisions of this chapter
and shall have no force and effect other than with respect to such
provisions. The term "insurance corporation" shall also include a
captive insurance company doing a captive insurance business, as defined
in subsections (c) and (b), respectively, of section seven thousand two
of the insurance law; provided, however, "insurance corporation" shall
not include the metropolitan transportation authority, or a public bene-
fit corporation or not-for-profit corporation formed by a city with a
population of one million or more pursuant to subsection (a) of section
seven thousand five of the insurance law, each of which is expressly
exempt from the payment of fees, taxes or assessments, whether state or
local. The term "insurance corporation" shall also include an unauthor-
ized insurer operating from an office within the state, pursuant to
paragraph five of subsection (b) of section one thousand one hundred one
and subsection (i) of section two thousand one hundred seventeen of the
insurance law. THE TERM "INSURANCE CORPORATION" ALSO INCLUDES A HEALTH
MAINTENANCE ORGANIZATION REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY
UNDER ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW.
S 2. Section 1502-a of the tax law, as added by section 2 of part H3
of chapter 62 of the laws of 2003, is amended to read as follows:
S 1502-a. Tax on non-life insurance corporations. In lieu of the tax
imposed by section fifteen hundred one of this article, every domestic
insurance corporation, every foreign insurance corporation and every
alien insurance corporation, other than such corporations transacting
the business of life insurance, (1) authorized to transact business in
this state under a certificate of authority from the superintendent of
insurance [or], (2) [which] THAT is a risk retention group as defined in
subsection (n) of section five thousand nine hundred two of the insur-
ance law, OR (3) THAT IS A HEALTH MAINTENANCE ORGANIZATION REQUIRED TO
OBTAIN A CERTIFICATE OF AUTHORITY UNDER ARTICLE FORTY-FOUR OF THE PUBLIC
HEALTH LAW, shall, for the privilege of exercising corporate franchises
or for carrying on business in a corporate or organized capacity within
this state, and in addition to any other taxes imposed for such privi-
lege, pay a tax on all gross direct premiums, less return premiums ther-
eon, written on risks located or resident in this state. The tax
imposed by this section shall be computed in the manner set forth in
subdivision (a) of section fifteen hundred ten of this article as such
subdivision applied to taxable years beginning before January first, two
thousand three, except that the rate of tax imposed by this section
shall be one and seventy-five hundredths percent on all gross direct
premiums, less return premiums thereon, for accident and health insur-
ance contracts, INCLUDING CONTRACTS WITH HEALTH MAINTENANCE ORGANIZA-
TIONS FOR HEALTH SERVICES, and two percent on all other such premiums.
All the other provisions in section fifteen hundred ten of this article
AS AMENDED FROM TIME TO TIME, other than subdivision (b) of such
section, shall apply to the tax imposed by this section. In no event
S. 57--B 84 A. 157--B
shall the tax imposed under this section be less than two hundred fifty
dollars.
S 3. Paragraphs 1 and 2 of subdivision (c) of section 1510 of the tax
law, as amended by section 7 of part H3 of chapter 62 of the laws of
2003, is amended to read as follows:
(1) The term "premium" includes all amounts received as consideration
for insurance contracts [or], reinsurance contracts OR CONTRACTS WITH
HEALTH MAINTENANCE ORGANIZATIONS FOR HEALTH SERVICES, other than for
annuity contracts, and shall include premium deposits, assessments,
policy fees, membership fees, any separate costs by carriers assessed
upon their policyholders and every other compensation for such contract.
In ascertaining the amount of direct premiums upon which a tax is paya-
ble under this section there shall be first determined the amount of
total gross premiums or deposit premiums or assessments, less returns
thereon, on all policies, certificates, renewals, policies subsequently
cancelled, insurance and reinsurance executed, issued or delivered on
property or risks located or resident in this state, including premiums
for reinsurance assumed, and also including premiums written, procured
or received in this state on business which cannot specifically be allo-
cated or apportioned and reported as taxable premiums or which have been
used as a measure of a tax on business of any other state or states.
Provided however, in the case of special risk premiums, direct premiums
shall include only those premiums written, procured or received in this
state on property or risks located or resident in this state. The
reporting of premiums for the purpose of the tax imposed by this section
shall be on a written basis or on a paid-for basis consistent with the
basis required by the annual statement filed with the superintendent of
insurance pursuant to section three hundred seven of the insurance law.
(2) The term "gross direct premiums," as used in this section, shall
not include premiums for policies issued pursuant to section four thou-
sand two hundred thirty-six of the insurance law and premiums for insur-
ance upon hulls, freights, or disbursements, or upon goods, wares,
merchandise and all other personal property and interests therein, in
the course of exportation from, importation into any country, or trans-
portation coastwise, including transportation by land or water from
point of origin to final destination in respect to, appertaining to, or
in connection with, any and all risks or perils of navigation, transit
or transportation, and while being prepared for, and while awaiting
shipment, and during any delays, storage, transshipment or reshipment
incident thereto, including war risks and marine builder's risks. THE
TERM "GROSS DIRECT PREMIUMS," AS USED IN THIS SECTION, ALSO SHALL NOT
INCLUDE ANY PREMIUMS THAT THIS STATE IS PROHIBITED FROM TAXING PURSUANT
TO FEDERAL LAW, INCLUDING (I) SUBSECTION (F) OF SECTION 8909 OF TITLE 5
OF THE UNITED STATES CODE, (II) SUBSECTION (G) OF SECTION 1395W-24 OF
TITLE 42 OF THE UNITED STATES CODE, (III) SUBSECTION (G) OF SECTION
1395W-112 OF TITLE 42 OF THE UNITED STATES CODE, AND (IV) SUBPARAGRAPH
(B) OF PARAGRAPH (4) OF SUBSECTION (K) OF SECTION 1395MM OF TITLE 42 OF
THE UNITED STATES CODE.
S 4. Subdivision (a) of section 1512 of the tax law is amended by
adding a new paragraph 10 to read as follows:
(10) ANY NONPROFIT HEALTH MAINTENANCE ORGANIZATION REQUIRED TO OBTAIN
A CERTIFICATE OF AUTHORITY UNDER ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH
LAW.
S 5. The state comptroller is hereby authorized and directed to depos-
it to the Health Care Reform Act Resources Fund (061) a portion of the
premiums tax on non-life insurance companies collected pursuant to
S. 57--B 85 A. 157--B
section 1502-a of the tax law as are periodically identified by the
director of the budget as having been intended for such deposit to
support disbursements from the Health Care Reform Act Resources Fund
made in pursuance of an appropriation by law.
S 6. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2009.
PART C-1
Section 1. Subdivision 1 of section 187-n of the tax law, as added by
chapter 446 of the laws of 2005, is amended to read as follows:
(1) Allowance of credit. [A] FOR TAXABLE YEARS BEGINNING BEFORE JANU-
ARY FIRST, TWO THOUSAND NINE, A taxpayer whose business is not substan-
tially engaged in the commercial generation, distribution, transmission,
or servicing of energy or energy products shall be allowed a credit
against the taxes imposed by sections one hundred eighty-three, one
hundred eighty-four and one hundred eighty-five of this article, equal
to its qualified fuel cell electric generating equipment expenditures.
Provided, however, that the amount of such credit allowable against the
tax imposed by section one hundred eighty-four of this article shall be
the excess of the amount of such credit over the amount of any credit
allowed by this section against the tax imposed by section one hundred
eighty-three of this article. This credit shall not exceed one thousand
five hundred dollars per generating unit with respect to any taxable
year. The credit provided for herein shall be allowed with respect to
the taxable year in which the fuel cell electric generating equipment is
placed in service.
S 2. Paragraph (a) of subdivision 37 of section 210 of the tax law, as
added by chapter 446 of the laws of 2005, is amended to read as follows:
(a) Allowance of credit. [A] FOR TAXABLE YEARS BEGINNING BEFORE JANU-
ARY FIRST, TWO THOUSAND NINE, A taxpayer shall be allowed a credit
against the tax imposed by this article, equal to its qualified fuel
cell electric generating equipment expenditures. This credit shall not
exceed one thousand five hundred dollars per generating unit with
respect to any taxable year. The credit provided for herein shall be
allowed with respect to the taxable year in which the fuel cell electric
generating equipment is placed in service.
S 3. Paragraph 1 of subsection (g-2) of section 606 of the tax law, as
amended by chapter 446 of the laws of 2005, is amended to read as
follows:
(1) General. [An] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST,
TWO THOUSAND NINE, AN individual taxpayer shall be allowed a credit
against the tax imposed by this article equal to twenty percent of qual-
ified fuel cell electric generating equipment expenditures. This credit
shall not exceed one thousand five hundred dollars per generating unit
with respect to any taxable year. The credit provided for herein shall
be allowed with respect to the taxable year in which the fuel cell elec-
tric generating equipment is placed in service.
S 4. Paragraph 1 of subsection (t) of section 1456 of the tax law, as
added by chapter 446 of the laws of 2005, is amended to read as follows:
(1) Allowance of credit. [A] FOR TAXABLE YEARS BEGINNING BEFORE JANU-
ARY FIRST, TWO THOUSAND NINE, A taxpayer shall be allowed a credit
against the tax imposed by this article, equal to its qualified fuel
cell electric generating equipment expenditures. This credit shall not
exceed one thousand five hundred dollars per generating unit with
respect to any taxable year. The credit provided for in this subsection
S. 57--B 86 A. 157--B
shall be allowed with respect to the taxable year in which the fuel cell
electric generating equipment is placed in service.
S 5. Paragraph 1 of subdivision (x) of section 1511 of the tax law, as
added by chapter 446 of the laws of 2005, is amended to read as follows:
(1) Allowance of credit. [A] FOR TAXABLE YEARS BEGINNING BEFORE JANU-
ARY FIRST, TWO THOUSAND NINE, A taxpayer shall be allowed a credit
against the tax imposed by this article, equal to its qualified fuel
cell electric generating equipment expenditures. This credit shall not
exceed one thousand five hundred dollars per generating unit with
respect to any taxable year. The credit provided for in this subdivision
shall be allowed with respect to the taxable year in which the fuel cell
electric generating equipment is placed in service.
S 6. Subdivision (a) of section 20 of the tax law, as added by section
1 of part I of chapter 63 of the laws of 2000, is amended to read as
follows:
(a) Allowance of credit. [A] FOR TAXABLE YEARS BEGINNING BEFORE JANU-
ARY FIRST, TWO THOUSAND NINE, A taxpayer subject to tax under article
nine, nine-A, twenty-two, thirty-two or thirty-three of this chapter
shall be allowed a credit against such tax, pursuant to the provisions
referenced in subdivision (d) of this section. The credit shall be
allowed where a taxpayer has made a certified contribution of at least
ten million dollars to a qualified transportation improvement project in
a prior taxable year. The credit shall be equal to six percent of the
taxpayer's increased qualified business facility payroll for the taxable
year. The aggregate of all credit amounts allowed to the taxpayer pursu-
ant to this section with respect to a certified contribution shall not
exceed the amount of such certified contribution.
S 7. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law, as amended by section 2 of part ZZ-1 of chapter 57 of
the laws of 2008, is amended to read as follows:
(B) shall be treated as the owner of a new business with respect to
such share if the corporation qualifies as a new business pursuant to
paragraph (j) of subdivision twelve of section two hundred ten of this
chapter.
The corporation's credit base under
section two hundred ten or section
With respect to the following fourteen hundred fifty-six of this
credit under this section: chapter is:
(I) Investment tax credit under Investment credit base or qualified
subsection (a) rehabilitation expenditures under
subdivision twelve of section two
hundred ten
(II) Empire zone investment Cost or other basis under
tax credit under subsection (j) subdivision twelve-B of section
two hundred ten
(III) Empire zone wage tax credit Eligible wages under subdivision
under subsection (k) nineteen of section two hundred
ten or subsection (e) of section
fourteen hundred fifty-six
(IV) Empire zone capital tax Qualified investments and
credit under subsection (l) contributions under subdivision
S. 57--B 87 A. 157--B
twenty of section two hundred ten
or subsection (d) of section
fourteen hundred fifty-six
(V) Agricultural property tax Allowable school district property
credit under subsection (n) taxes under subdivision twenty-two
of section two hundred ten
(VI) Credit for employment of Qualified first-year wages or
persons with disabilities qualified second-year wages under
under subsection (o) subdivision twenty-three of
section two hundred ten or
subsection (f) of section
fourteen hundred fifty-six
(VII) Employment incentive credit Applicable investment credit base
under subsection (a-1) under subdivision twelve-D of
section two hundred ten
(VIII) Empire zone employment Applicable investment credit
incentive credit under subsection under subdivision twelve-C of
(j-1) section two hundred ten
(IX) Alternative fuels credit Cost under subdivision twenty-four
under subsection (p) of section two hundred ten
(X) Qualified emerging technology Applicable credit base under
company employment credit under subdivision twelve-E of section
subsection (q) two hundred ten
(XI) Qualified emerging technology Qualified investments under
company capital tax credit under subdivision twelve-F of section
subsection (r) two hundred ten
(XII) Credit for purchase of an Cost of an automated external
automated external defibrillator defibrillator under subdivision
under subsection (s) twenty-five of section two hundred
ten or subsection (j) of section
fourteen hundred fifty-six
(XIII) Low-income housing credit Credit amount under subdivision
under subsection (x) thirty of section two hundred ten
or subsection (l) of section
fourteen hundred fifty-six
(XIV) Credit for transportation [Amount] FOR
improvement contributions under TAXABLE YEARS BEGINNING
subsection (z) BEFORE JANUARY FIRST, TWO THOUSAND
NINE, AMOUNT of credit under
subdivision thirty-two of
section two hundred ten
or subsection (n) of section
fourteen hundred fifty-six
(XV) QEZE credit for real property Amount of credit under subdivision
taxes under subsection (bb) twenty-seven of section two hundred
S. 57--B 88 A. 157--B
ten or subsection (o) of section
fourteen hundred fifty-six
(XVI) QEZE tax reduction credit Amount of benefit period factor,
under subsection (cc) employment increase factor and zone
allocation factor (without regard
to pro ration) under subdivision
twenty-eight of section two hundred
ten or subsection (p) of section
fourteen hundred fifty-six and
amount of tax factor as determined
under subdivision (f) of section
sixteen
(XVII) Green building credit under Amount of green building credit
subsection (y) under subdivision thirty-one of
section two hundred ten or
subsection (m) of section fourteen
hundred fifty-six
(XVIII) Credit for long-term care Qualified costs under subdivision
insurance premiums under subsection twenty-five-a of section two
(aa) hundred ten or subsection (k) of
section fourteen hundred fifty-six
(XIX) Brownfield redevelopment Amount of credit under subdivision
credit under subsection (dd) thirty-three of section two hundred
ten or subsection (q) of section
fourteen hundred fifty-six
(XX) Remediated brownfield credit Amount of credit under subdivision
for real property taxes for thirty-four of section two hundred
qualified sites under subsection ten or subsection (r) of section
(ee) fourteen hundred fifty-six
(XXI) Environmental remediation Amount of credit under subdivision
insurance credit under subsection thirty-five of section two hundred
(ff) ten or subsection (s) of section
fourteen hundred fifty-six
(XXII) Empire state film production Amount of credit for qualified
credit under subsection (gg) production costs in production of a
qualified film under subdivision
thirty-six of section two hundred
ten
(XXIII) Qualified emerging Qualifying expenditures and
technology company facilities, development activities under
operations and training credit subdivision twelve-G of section two
under subsection (nn) hundred ten
(XXIV) Security training tax credit Amount of credit under subdivision
under subsection (ii) thirty-seven of section two hundred
ten or under subsection (t) of
section fourteen hundred fifty-six
S. 57--B 89 A. 157--B
(XXV) Credit for qualified fuel [Amount] FOR
cell electric generating TAXABLE YEARS BEGINNING BEFORE
equipment expenditures JANUARY FIRST, TWO THOUSAND NINE,
under subsection (g-2) AMOUNT of credit under subdivision
thirty-seven of section two hundred
ten or subsection (t) of section
fourteen hundred fifty-six
(XXVI) Empire state commercial Amount of credit for qualified
production credit under subsection production costs in production of
(jj) a qualified commercial under
subdivision thirty-eight of
section two hundred ten
(XXVII) Biofuel production tax Amount of credit under subdivision
credit under subsection (jj) thirty-eight of section two hundred
ten
(XXVIII) Clean heating fuel credit Amount of credit under subdivision
under subsection (mm) thirty-nine of section two hundred
ten
(XXIX) Credit for rehabilitation Amount of credit under subdivision
of historic properties under forty of [subsection] SECTION
subsection (oo) two hundred ten
(XXX) Credit for companies who Amount of credit under subdivision
provide transportation to forty of section two hundred ten
individuals with disabilities under
subsection (oo)
S 8. This act shall take effect immediately; provided, however that
the empire state film production credit under subsection (gg), the
empire state commercial production credit under subsection (jj) and the
credit for companies who provide transportation to individuals with
disabilities under subsection (oo) of section 606 of the tax law
contained in section seven of this act shall expire on the same date as
provided in section 9 of part P of chapter 60 of the laws of 2004, as
amended, section 10 of part V of chapter 62 of the laws of 2006, as
amended and section 5 of chapter 522 of the laws of 2006, as amended,
respectively.
PART D-1
Section 1. The tax law is amended by adding a new section 171-t to
read as follows:
S 171-T. RECIPROCAL OFFSET AGREEMENTS WITH THE UNITED STATES OR OTHER
STATES. (1) FOR THE PURPOSES OF THIS SECTION, THE DEFINITIONS PROVIDED
FOR IN SECTION ONE HUNDRED SEVENTY-ONE-N OF THIS ARTICLE APPLY TOGETHER
WITH THE FOLLOWING:
(A) "CLAIMANT" MEANS ANY STATE OR THE UNITED STATES THAT ENTERS INTO A
RECIPROCAL AGREEMENT UNDER THIS SECTION OR REQUESTS APPLICATION OF A
VENDOR PAYMENT OR AN OVERPAYMENT TO A DEBT.
(B) "DEBT" MEANS (I), FOR PURPOSES OF STATE DEBT, A "TAX DEBT" AS
DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-N OF THIS ARTICLE AND ANY
OTHER PAST DUE LEGALLY ENFORCEABLE OBLIGATION OWED TO A STATE, WHICH
S. 57--B 90 A. 157--B
ARISES FROM (A) AN ENFORCEABLE JUDGMENT OF A COURT OF COMPETENT JURIS-
DICTION THAT IS NO LONGER SUBJECT TO JUDICIAL REVIEW, OR (B) AN ENFORCE-
ABLE DETERMINATION OF AN ADMINISTRATIVE BODY THAT IS NO LONGER SUBJECT
TO ADMINISTRATIVE OR JUDICIAL REVIEW, OR (C) A DETERMINATION THAT HAS
BECOME FINAL OR FINALLY AND IRREVOCABLY FIXED AND NO LONGER SUBJECT TO
ADMINISTRATIVE OR JUDICIAL REVIEW; OR (II), FOR PURPOSES OF FEDERAL
DEBT, DEBT MEANS ANY AMOUNT OF MONEY, FUNDS OR PROPERTY THAT HAS BEEN
DETERMINED BY AN APPROPRIATE OFFICIAL OF THE FEDERAL GOVERNMENT TO BE
OWED TO THE UNITED STATES BY A PERSON, ORGANIZATION, OR ENTITY, EXCEPT
ANOTHER FEDERAL AGENCY, TO THE EXTENT SUCH AMOUNT IS ELIGIBLE FOR OFFSET
UNDER FEDERAL LAW. THE TERM INCLUDES DEBT ADMINISTERED BY A THIRD PARTY
ACTING AS AN AGENT FOR THE FEDERAL GOVERNMENT.
(C) "DEBTOR" MEANS A PERSON WHO OWES A DEBT.
(D) "PERSON" HAS THE SAME MEANING AS THAT TERM HAS IN SUBDIVISION (A)
OF SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER.
(E) "VENDOR PAYMENT" MEANS ANY PAYMENT, OTHER THAN AN OVERPAYMENT,
MADE BY A STATE OR THE UNITED STATES TO ANY PERSON, AND INCLUDES BUT IS
NOT LIMITED TO ANY EXPENSE REIMBURSEMENT TO AN EMPLOYEE OF THE STATE OR
THE UNITED STATES; BUT DOES NOT INCLUDE A PERSON'S SALARY, WAGES OR
PENSION.
(2) THE COMMISSIONER MAY, IN HIS OR HER DISCRETION, ENTER INTO A
COLLECTION AND OFFSET AGREEMENT WITH ANOTHER STATE OR WITH THE UNITED
STATES SECRETARY OF THE TREASURY THROUGH THE INTERNAL REVENUE SERVICE OR
THE FINANCIAL MANAGEMENT SERVICE OF THE DEPARTMENT OF THE TREASURY OF
THE UNITED STATES UNDER WHICH THE COMMISSIONER, ON BEHALF OF THE STATE
OF NEW YORK, MAY, IN HIS OR HER DISCRETION, AGREE TO PAY TO A CLAIMANT
OWED A DEBT BY A TAXPAYER OR OTHER PERSON THE WHOLE OR PART OF AN OVER-
PAYMENT OR A VENDOR PAYMENT OWED BY THE STATE TO THAT TAXPAYER OR OTHER
PERSON, PROVIDED THE CLAIMANT GRANTS SUBSTANTIALLY SIMILAR PRIVILEGES TO
THIS STATE. HOWEVER, THE UNITED STATES WILL NOT BE REQUIRED UNDER THIS
SECTION TO OFFSET TAX OVERPAYMENTS OWED BY IT EXCEPT TO THE EXTENT THAT
IT AGREES TO DO SO. AN AGREEMENT WITH THE CLAIMANT MUST SPECIFY THAT A
TAXPAYER OR ANY PERSON OWED A VENDOR PAYMENT WILL RECEIVE THIRTY DAYS
ADVANCE WRITTEN NOTICE OF THE OFFSET AND WILL BE PROVIDED WITH AN OPPOR-
TUNITY TO PRESENT WRITTEN OR ORAL EVIDENCE ABOUT THE APPLICATION OF THE
OVERPAYMENT OR VENDOR PAYMENT TO THE DEBT. A PROCEEDING FOR JUDICIAL
REVIEW OF THE DECISION IN THE MANNER PROVIDED BY ARTICLE SEVENTY-EIGHT
OF THE CIVIL PRACTICE LAW AND RULES MAY BE COMMENCED BY A TAXPAYER OR A
PERSON OWED A VENDOR PAYMENT WITHIN FOUR MONTHS AFTER A COPY OF A DECI-
SION ADVERSE TO THE TAXPAYER OR THAT PERSON IS MAILED TO THE TAXPAYER OR
THAT PERSON. ARTICLE FORTY OF THIS CHAPTER DOES NOT APPLY TO ANY HEARING
OR PROCEEDING ON WHETHER AN OVERPAYMENT OR VENDOR PAYMENT MAY BE APPLIED
TO A DEBT UNDER THIS SECTION. THE REMEDY PROVIDED BY THIS SECTION FOR
REVIEW OF HEARINGS AND PROCEEDINGS IS THE EXCLUSIVE REMEDY AVAILABLE TO
JUDICIALLY DETERMINE WHETHER AN OVERPAYMENT OR VENDOR PAYMENT MAY BE
APPLIED TO A DEBT UNDER THIS SECTION. THE AMOUNT OF A DEBT REMAINING DUE
AS CERTIFIED BY A CLAIMANT WILL BE PRIMA FACIE EVIDENCE OF THE CORRECT
AMOUNT OF A DEBT.
(3) THE COMMISSIONER WILL CALCULATE THE AMOUNT OF AN OVERPAYMENT AND
INTEREST THEREON THAT IS TO BE CREDITED AGAINST THE AMOUNT OF A PAST DUE
LEGALLY ENFORCEABLE DEBT OWED BY A TAXPAYER WHICH IS CERTIFIED TO THE
DEPARTMENT FOR COLLECTION UNDER THIS SECTION USING THE RULES IN SUBDIVI-
SION FIVE OF SECTION ONE HUNDRED SEVENTY-ONE-F OF THIS ARTICLE. IF A
TAXPAYER OR A PERSON OWES MORE THAN ONE DEBT WHICH IS CERTIFIED TO THE
COMMISSIONER FOR COLLECTION UNDER THIS SECTION, ANY OVERPAYMENT OR
VENDOR PAYMENT WILL BE CREDITED AGAINST THE DEBTS IN THE ORDER IN WHICH
S. 57--B 91 A. 157--B
THE DEBTS ACCRUED. A DEBT WILL BE CONSIDERED TO HAVE ACCRUED AT THE TIME
AT WHICH THE DEBT BECAME PAST DUE.
(4) NOTWITHSTANDING ANY OTHER LAW, THE COMMISSIONER IS AUTHORIZED TO
RELEASE TO A CLAIMANT TAXPAYER INFORMATION FOR PURPOSES OF IMPLEMENTING
AND ADMINISTERING AN AGREEMENT ENTERED INTO BETWEEN THE CLAIMANT AND
THIS STATE UNDER THIS SECTION.
S 2. Subdivision 2 of section 171-p of the tax law, as added by
section 1 of part BB-1 of chapter 57 of the laws of 2008, is amended to
read as follows:
(2) The commissioner may implement procedures under which any cost or
fee imposed or charged by the United States or any state, with respect
to payment or remittance of a taxpayer's overpayment to satisfy a tax
debt of the taxpayer, must not be credited by the commissioner to
payment or satisfaction of the tax debt, must be deemed to be part of
the taxpayer's tax debt, and must be eligible for offset against the
taxpayer's overpayment to the extent permitted by law. THE COMMISSIONER
MAY ALSO IMPLEMENT PROCEDURES UNDER WHICH ANY COST OR FEE IMPOSED OR
CHARGED BY THE UNITED STATES OR ANY OTHER STATE, WITH RESPECT TO ANY
OTHER PAYMENT OR REMITTANCE OF A TAXPAYER'S OVERPAYMENT OR A VENDOR
PAYMENT TO SATISFY A DEBT OF THE TAXPAYER OR THE PERSON WHO IS OWED THE
VENDOR PAYMENT AS AUTHORIZED BY SECTION ONE HUNDRED SEVENTY-ONE-T OF
THIS ARTICLE, MUST NOT BE CREDITED BY THE STATE OF NEW YORK TO PAYMENT
OR SATISFACTION OF THE DEBT, MUST BE DEEMED TO BE PART OF THE TAXPAYER'S
OR PERSON'S DEBT, AND MUST BE ELIGIBLE FOR OFFSET AGAINST THE TAXPAYER'S
OVERPAYMENT OR THE PERSON'S VENDOR PAYMENT TO THE EXTENT PERMITTED BY
LAW.
S 3. Paragraph (c) of subdivision 1 of section 171-n of the tax law,
as added by section 2 of part O of chapter 61 of the laws of 2005, is
amended to read as follows:
(c) "tax debt" means any past due, legally enforceable tax obligation
owed any other state administering that tax, which arises from (i) an
enforceable judgment of a court of competent jurisdiction which is no
longer subject to judicial review, or (ii) an enforceable determination
of an administrative body which is no longer subject to administrative
or judicial review, or (iii) an assessment or determination (including
self-assessment or self-assessed determination) which has become final
or finally and irrevocably fixed and no longer subject to administrative
or judicial review[, and which has not been delinquent for more than ten
years]; and
S 4. This act shall take effect immediately.
PART E-1
Section 1. Section 2 of the tax law is amended by adding a new subdi-
vision 11 to read as follows:
11. THE TERM "OVERCAPITALIZED CAPTIVE INSURANCE COMPANY" MEANS AN
ENTITY THAT IS TREATED AS AN ASSOCIATION TAXABLE AS A CORPORATION UNDER
THE INTERNAL REVENUE CODE (A) MORE THAN FIFTY PERCENT OF THE VOTING
STOCK OF WHICH IS OWNED OR CONTROLLED, DIRECTLY OR INDIRECTLY, BY A
SINGLE ENTITY THAT IS TREATED AS AN ASSOCIATION TAXABLE AS A CORPORATION
UNDER THE INTERNAL REVENUE CODE AND NOT EXEMPT FROM FEDERAL INCOME TAX;
(B) THAT IS LICENSED AS A CAPTIVE INSURANCE COMPANY UNDER THE LAWS OF
THIS STATE OR ANOTHER JURISDICTION; (C) WHOSE BUSINESS INCLUDES PROVID-
ING, DIRECTLY AND INDIRECTLY, INSURANCE OR REINSURANCE COVERING THE
RISKS OF ITS PARENT AND/OR MEMBERS OF ITS AFFILIATED GROUP; AND (D)
FIFTY PERCENT OR LESS OF WHOSE GROSS RECEIPTS FOR THE TAXABLE YEAR
S. 57--B 92 A. 157--B
CONSIST OF PREMIUMS. FOR PURPOSES OF THIS SUBDIVISION, "AFFILIATED
GROUP" HAS THE SAME MEANING AS THAT TERM IS GIVEN IN SECTION 1504 OF THE
INTERNAL REVENUE CODE, EXCEPT THAT THE TERM "COMMON PARENT CORPORATION"
IN THAT SECTION IS DEEMED TO MEAN ANY PERSON, AS DEFINED IN SECTION 7701
OF THE INTERNAL REVENUE CODE; REFERENCES TO "AT LEAST EIGHTY PERCENT" IN
SECTION 1504 OF THE INTERNAL REVENUE CODE ARE TO BE READ AS "FIFTY
PERCENT OR MORE;" SECTION 1504 OF THE INTERNAL REVENUE CODE IS TO BE
READ WITHOUT REGARD TO THE EXCLUSIONS PROVIDED FOR IN SUBSECTION (B) OF
THAT SECTION; "PREMIUMS" HAS THE SAME MEANING AS THAT TERM IS GIVEN IN
PARAGRAPH ONE OF SUBDIVISION (C) OF SECTION FIFTEEN HUNDRED TEN OF THIS
CHAPTER, EXCEPT THAT IT INCLUDES CONSIDERATION FOR ANNUITY CONTRACTS AND
EXCLUDES ANY PART OF THE CONSIDERATION FOR INSURANCE, REINSURANCE OR
ANNUITY CONTRACTS THAT DO NOT PROVIDE BONA FIDE INSURANCE, REINSURANCE
OR ANNUITY BENEFITS; AND "GROSS RECEIPTS" INCLUDES THE AMOUNTS INCLUDED
IN GROSS RECEIPTS FOR PURPOSES OF SECTION 501(C) (15) OF THE INTERNAL
REVENUE CODE, EXCEPT THAT THOSE AMOUNTS ALSO INCLUDE ALL PREMIUMS AS
DEFINED IN THIS SUBDIVISION.
S 2. Paragraph (a) of subdivision 4 of section 211 of the tax law is
amended by adding a new subparagraph 7 to read as follows:
(7) (I) FOR PURPOSES OF THIS SUBPARAGRAPH, THE TERM "CLOSEST CONTROL-
LING STOCKHOLDER" MEANS THE CORPORATION THAT INDIRECTLY OWNS OR CONTROLS
OVER FIFTY PERCENT OF THE VOTING STOCK OF AN OVERCAPITALIZED CAPTIVE
INSURANCE COMPANY; IS SUBJECT TO TAX UNDER THIS ARTICLE OR ARTICLE THIR-
TY-TWO OF THIS CHAPTER, OR IS OTHERWISE REQUIRED TO BE INCLUDED IN A
COMBINED RETURN OR REPORT UNDER THIS ARTICLE OR ARTICLE THIRTY-TWO OF
THIS CHAPTER; AND IS THE FEWEST TIERS OF CORPORATIONS AWAY IN THE OWNER-
SHIP STRUCTURE FROM THE OVERCAPITALIZED CAPTIVE INSURANCE COMPANY. THE
COMMISSIONER IS AUTHORIZED TO PRESCRIBE BY REGULATION OR PUBLISHED GUID-
ANCE THE CRITERIA FOR DETERMINING THE CLOSEST CONTROLLING STOCKHOLDER.
(II) AN OVERCAPITALIZED CAPTIVE INSURANCE COMPANY MUST BE INCLUDED IN
A COMBINED REPORT WITH THE CORPORATION THAT DIRECTLY OWNS OR CONTROLS
OVER FIFTY PERCENT OF THE VOTING STOCK OF THE OVERCAPITALIZED CAPTIVE
INSURANCE COMPANY IF THAT CORPORATION IS SUBJECT TO TAX OR REQUIRED TO
BE INCLUDED IN A COMBINED REPORT UNDER THIS ARTICLE.
(III) IF OVER FIFTY PERCENT OF THE VOTING STOCK OF AN OVERCAPITALIZED
CAPTIVE INSURANCE COMPANY IS NOT DIRECTLY OWNED OR CONTROLLED BY A
CORPORATION THAT IS SUBJECT TO TAX OR REQUIRED TO BE INCLUDED IN A
COMBINED REPORT UNDER THIS ARTICLE, THEN THE OVERCAPITALIZED CAPTIVE
INSURANCE COMPANY MUST BE INCLUDED IN A COMBINED RETURN OR REPORT WITH
THE CORPORATION THAT IS THE CLOSEST CONTROLLING STOCKHOLDER OF THE OVER-
CAPITALIZED CAPTIVE INSURANCE COMPANY. IF THE CLOSEST CONTROLLING STOCK-
HOLDER OF THE OVERCAPITALIZED CAPTIVE INSURANCE COMPANY IS SUBJECT TO
TAX OR OTHERWISE REQUIRED TO BE INCLUDED IN A COMBINED REPORT UNDER THIS
ARTICLE, THEN THE OVERCAPITALIZED CAPTIVE INSURANCE COMPANY MUST BE
INCLUDED IN A COMBINED REPORT UNDER THIS ARTICLE.
(IV) IF THE CORPORATION THAT DIRECTLY OWNS OR CONTROLS THE VOTING
STOCK OF THE OVERCAPITALIZED CAPTIVE INSURANCE COMPANY IS DESCRIBED IN
SUBPARAGRAPH TWO, THREE, OR FIVE OF THIS PARAGRAPH AS A CORPORATION NOT
PERMITTED TO MAKE A COMBINED REPORT, THEN THE PROVISIONS IN CLAUSE (III)
OF THIS SUBPARAGRAPH MUST BE APPLIED TO DETERMINE THE CORPORATION IN
WHOSE COMBINED RETURN OR REPORT THE OVERCAPITALIZED CAPTIVE INSURANCE
COMPANY SHOULD BE INCLUDED. IF, UNDER CLAUSE (III) OF THIS SUBPARAGRAPH,
THE CORPORATION THAT IS THE CLOSEST CONTROLLING STOCKHOLDER OF THE OVER-
CAPITALIZED CAPTIVE INSURANCE COMPANY IS DESCRIBED IN SUBPARAGRAPH TWO,
THREE OR FIVE OF THIS PARAGRAPH AS A CORPORATION NOT PERMITTED TO MAKE A
COMBINED RETURN, THEN THAT CORPORATION IS DEEMED NOT TO BE IN THE OWNER-
S. 57--B 93 A. 157--B
SHIP STRUCTURE OF THE OVERCAPITALIZED CAPTIVE INSURANCE COMPANY, AND THE
CLOSEST CONTROLLING STOCKHOLDER WILL BE DETERMINED WITHOUT REGARD TO
THAT CORPORATION.
(V) IF AN OVERCAPITALIZED CAPTIVE INSURANCE COMPANY IS REQUIRED UNDER
THIS SUBPARAGRAPH TO BE INCLUDED IN A COMBINED REPORT WITH ANOTHER
CORPORATION, AND THAT OTHER CORPORATION IS ALSO REQUIRED TO BE INCLUDED
IN A COMBINED REPORT WITH ANOTHER RELATED CORPORATION OR CORPORATIONS
UNDER THIS PARAGRAPH, THEN THE OVERCAPITALIZED CAPTIVE INSURANCE COMPANY
MUST BE INCLUDED IN THAT COMBINED REPORT WITH THOSE CORPORATIONS.
(VI) IF AN OVERCAPITALIZED CAPTIVE INSURANCE COMPANY IS NOT REQUIRED
TO BE INCLUDED IN A COMBINED REPORT WITH ANOTHER CORPORATION UNDER
CLAUSE (II) OR (III) OF THIS SUBPARAGRAPH, OR IN A COMBINED RETURN UNDER
THE PROVISIONS OF SUBPARAGRAPH (V) OF PARAGRAPH TWO OF SUBSECTION (F) OF
SECTION FOURTEEN HUNDRED SIXTY-TWO OF THIS CHAPTER, THEN THE OVERCAPI-
TALIZED CAPTIVE INSURANCE COMPANY IS SUBJECT TO THE OPENING PROVISIONS
OF THIS PARAGRAPH AND THE PROVISIONS OF SUBPARAGRAPH FOUR OF THIS PARA-
GRAPH. THE OVERCAPITALIZED CAPTIVE INSURANCE COMPANY MUST BE INCLUDED IN
A COMBINED REPORT UNDER THIS ARTICLE WITH ANOTHER CORPORATION IF EITHER
THE SUBSTANTIAL INTERCORPORATE TRANSACTIONS REQUIREMENT IN THE OPENING
PROVISIONS OF THIS PARAGRAPH OR THE INTER-COMPANY TRANSACTIONS OR AGREE-
MENT, UNDERSTANDING, ARRANGEMENT OR TRANSACTION REQUIREMENT OF SUBPARA-
GRAPH FOUR OF THIS PARAGRAPH IS SATISFIED, AND BOTH MORE THAN FIFTY
PERCENT OF THE VOTING STOCK OF THE OVERCAPITALIZED CAPTIVE INSURANCE
COMPANY AND SUBSTANTIALLY ALL OF THE CAPITAL STOCK OF THAT OTHER CORPO-
RATION ARE OWNED AND CONTROLLED, DIRECTLY OR INDIRECTLY, BY THE SAME
CORPORATION.
S 3. Subparagraph 1 of paragraph (b) of subdivision 4 of section 211
of the tax law, as amended by section 4 of part FF-1 of chapter 57 of
the laws of 2008, is amended to read as follows:
(1) Tax. (i) In the case of a combined report the tax shall be meas-
ured by the combined entire net income, combined minimum taxable income,
combined pre-nineteen hundred ninety minimum taxable income or combined
capital, of all the corporations included in the report, including any
captive REIT [or], captive RIC OR OVERCAPITALIZED CAPTIVE INSURANCE
COMPANY; provided, however, in no event shall the tax measured by
combined capital exceed the limitation provided for in paragraph (b) of
subdivision one of section two hundred ten of this article.
(ii) In the case of a captive REIT or captive RIC required under this
subdivision to be included in a combined report, entire net income must
be computed as required under subdivision five (in the case of a captive
REIT) or subdivision seven (in the case of a captive RIC) of section two
hundred nine of this article. However, the deduction under the internal
revenue code for dividends paid by the captive REIT or captive RIC to
any member of the affiliated group that includes the corporation that
directly or indirectly owns over fifty percent of the voting stock of
the captive REIT or captive RIC shall not be allowed for taxable years
beginning on or after January first, two thousand eight. The term
"affiliated group" means "affiliated group" as defined in section
fifteen hundred four of the internal revenue code, but without regard to
the exceptions provided for in subsection (b) of that section.
(III) IN THE CASE OF AN OVERCAPITALIZED CAPTIVE INSURANCE COMPANY
REQUIRED UNDER THIS SUBDIVISION TO BE INCLUDED IN A COMBINED REPORT,
ENTIRE NET INCOME MUST BE COMPUTED AS REQUIRED BY SUBDIVISION NINE OF
SECTION TWO HUNDRED EIGHT OF THIS ARTICLE.
S. 57--B 94 A. 157--B
S 4. Subsection (d) of section 1452 of the tax law, as amended by
section 5 of part FF-1 of chapter 57 of the laws of 2008, is amended to
read as follows:
(d) Corporations taxable under article nine-A. Notwithstanding the
provisions of this article, all corporations of classes now or hereto-
fore taxable under article nine-A of this chapter shall continue to be
taxable under article nine-A, except: (1) corporations organized under
article five-A of the banking law; (2) corporations subject to article
three-A of the banking law, or registered under the federal bank holding
company act of nineteen hundred fifty-six, as amended, or registered as
a savings and loan holding company (but excluding a diversified savings
and loan holding company) under the federal national housing act, as
amended, which make a combined return under the provisions of subsection
(f) of section fourteen hundred sixty-two; (3) banking corporations
described in paragraph nine of subsection (a) of this section; [and] (4)
any captive REIT or captive RIC that is required to be included in a
combined return under the provisions of subsection (f) of section four-
teen hundred sixty-two of this article; AND (5) ANY OVERCAPITALIZED
CAPTIVE INSURANCE COMPANY REQUIRED TO BE INCLUDED IN A COMBINED RETURN
UNDER SUBSECTION (F) OF SECTION FOURTEEN HUNDRED SIXTY-TWO OF THIS ARTI-
CLE. Provided, however, that a corporation described in paragraph three
of this subsection which was subject to the tax imposed by article
nine-A of this chapter for its taxable year ending during nineteen
hundred eighty-four may, on or before the due date for filing its return
(determined with regard to extensions) for its taxable year ending
during nineteen hundred eighty-five, make a one time election to contin-
ue to be taxable under such article nine-A. Such election shall continue
to be in effect until revoked by the taxpayer. In no event shall such
election or revocation be for a part of a taxable year.
S 5. Paragraph 4 of subsection (m) of section 1452 of the tax law, as
added by section 6 of part FF-1 of chapter 57 of the laws of 2008, is
amended to read as follows:
(4) The provisions of this subsection shall not apply to a captive
REIT [or], a captive RIC OR AN OVERCAPITALIZED CAPTIVE INSURANCE
COMPANY.
S 6. Paragraph 2 of subsection (f) of section 1462 of the tax law is
amended by adding a new subparagraph (vi) to read as follows:
(VI) (A) FOR PURPOSES OF THIS SUBPARAGRAPH, THE TERM "CLOSEST CONTROL-
LING STOCKHOLDER" MEANS THE CORPORATION THAT INDIRECTLY OWNS OR CONTROLS
OVER FIFTY PERCENT OF THE VOTING STOCK OF AN OVERCAPITALIZED CAPTIVE
INSURANCE COMPANY, IS SUBJECT TO TAX UNDER THIS ARTICLE OR ARTICLE
NINE-A OF THIS CHAPTER OR OTHERWISE REQUIRED TO BE INCLUDED IN A
COMBINED RETURN UNDER THIS ARTICLE OR ARTICLE NINE-A OF THIS CHAPTER,
AND IS THE FEWEST TIERS OF CORPORATIONS AWAY IN THE OWNERSHIP STRUCTURE
FROM THE OVERCAPITALIZED CAPTIVE INSURANCE COMPANY. THE COMMISSIONER IS
AUTHORIZED TO PRESCRIBE BY REGULATION OR PUBLISHED GUIDANCE THE CRITERIA
FOR DETERMINING THE CLOSEST CONTROLLING STOCKHOLDER.
(B) AN OVERCAPITALIZED CAPTIVE INSURANCE COMPANY MUST BE INCLUDED IN A
COMBINED RETURN WITH THE BANKING CORPORATION OR BANK HOLDING COMPANY
THAT DIRECTLY OWNS OR CONTROLS OVER FIFTY PERCENT OF THE VOTING STOCK OF
THE OVERCAPITALIZED CAPTIVE INSURANCE COMPANY IF THAT BANKING CORPO-
RATION OR BANK HOLDING COMPANY IS SUBJECT TO TAX OR REQUIRED TO BE
INCLUDED IN A COMBINED RETURN UNDER THIS ARTICLE.
(C) IF OVER FIFTY PERCENT OF THE VOTING STOCK OF AN OVERCAPITALIZED
CAPTIVE INSURANCE COMPANY IS NOT DIRECTLY OWNED OR CONTROLLED BY A BANK-
ING CORPORATION OR BANK HOLDING COMPANY THAT IS SUBJECT TO TAX OR
S. 57--B 95 A. 157--B
REQUIRED TO BE INCLUDED IN A COMBINED RETURN UNDER THIS ARTICLE, THEN
THE OVERCAPITALIZED CAPTIVE INSURANCE COMPANY MUST BE INCLUDED IN A
COMBINED RETURN OR REPORT WITH THE CORPORATION THAT IS THE CLOSEST
CONTROLLING STOCKHOLDER OF THE OVERCAPITALIZED CAPTIVE INSURANCE COMPA-
NY. IF THE CLOSEST CONTROLLING STOCKHOLDER OF THE OVERCAPITALIZED
CAPTIVE INSURANCE COMPANY IS A BANKING CORPORATION OR BANK HOLDING
COMPANY THAT IS SUBJECT TO TAX OR OTHERWISE REQUIRED TO BE INCLUDED IN A
COMBINED RETURN UNDER THIS ARTICLE, THEN THE OVERCAPITALIZED CAPTIVE
INSURANCE COMPANY MUST BE INCLUDED IN A COMBINED RETURN UNDER THIS ARTI-
CLE.
(D) IF THE CORPORATION THAT DIRECTLY OWNS OR CONTROLS THE VOTING STOCK
OF THE OVERCAPITALIZED CAPTIVE INSURANCE COMPANY IS DESCRIBED IN SUBPAR-
AGRAPH (II) OR (IV) OF PARAGRAPH FOUR OF THIS SUBSECTION AS A CORPO-
RATION NOT PERMITTED TO MAKE A COMBINED RETURN, THEN THE PROVISIONS IN
CLAUSE (C) OF THIS SUBPARAGRAPH MUST BE APPLIED TO DETERMINE THE CORPO-
RATION IN WHOSE COMBINED RETURN OR REPORT THE OVERCAPITALIZED CAPTIVE
INSURANCE COMPANY SHOULD BE INCLUDED. IF, UNDER CLAUSE (C) OF THIS
SUBPARAGRAPH, THE CORPORATION THAT IS THE CLOSEST CONTROLLING STOCKHOLD-
ER OF THE OVERCAPITALIZED CAPTIVE INSURANCE COMPANY IS DESCRIBED IN
SUBPARAGRAPH (II) OR (IV) OF PARAGRAPH FOUR OF THIS SUBSECTION AS A
CORPORATION NOT PERMITTED TO MAKE A COMBINED RETURN, THEN THAT CORPO-
RATION IS DEEMED NOT TO BE IN THE OWNERSHIP STRUCTURE OF THE OVERCAPI-
TALIZED CAPTIVE INSURANCE COMPANY, AND THE CLOSEST CONTROLLING STOCK-
HOLDER WILL BE DETERMINED WITHOUT REGARD TO THAT CORPORATION.
(E) IF AN OVERCAPITALIZED CAPTIVE INSURANCE COMPANY IS REQUIRED UNDER
THIS SUBPARAGRAPH TO BE INCLUDED IN A COMBINED RETURN WITH ANOTHER
CORPORATION, AND THAT OTHER CORPORATION IS REQUIRED TO BE INCLUDED IN A
COMBINED RETURN WITH ANOTHER CORPORATION UNDER OTHER PROVISIONS OF THIS
SUBSECTION, THE OVERCAPITALIZED CAPTIVE INSURANCE COMPANY MUST BE
INCLUDED IN THAT COMBINED RETURN WITH THOSE CORPORATIONS.
S 7. Paragraph 3 of subsection (f) of section 1462 of the tax law, as
amended by section 11 of part FF-1 of chapter 57 of the laws of 2008, is
amended to read as follows:
(3) (i) In the case of a combined return, the tax shall be measured by
the combined entire net income, combined alternative entire net income
or combined assets of all the corporations included in the return,
including any captive REIT [or], captive RIC OR OVERCAPITALIZED CAPTIVE
INSURANCE COMPANY. The allocation percentage shall be computed based on
the combined factors with respect to all the corporations included in
the combined return. In computing combined entire net income and
combined alternative entire net income intercorporate dividends and all
other intercorporate transactions shall be eliminated and in computing
combined assets intercorporate stockholdings and intercorporate bills,
notes and accounts receivable and payable and other intercorporate
indebtedness shall be eliminated.
(ii) In the case of a captive REIT required under this subsection to
be included in a combined return, "entire net income" means "real estate
investment trust taxable income" as defined in paragraph two of subdivi-
sion (b) of section eight hundred fifty-seven (as modified by section
eight hundred fifty-eight) of the internal revenue code, plus the amount
taxable under paragraph three of subdivision (b) of section eight
hundred fifty-seven of that code, subject to the modifications required
by section fourteen hundred fifty-three of this article. In the case of
a captive RIC required under this subsection to be included in a
combined return, "entire net income" means "investment company taxable
income" as defined in paragraph two of subdivision (b) of section eight
S. 57--B 96 A. 157--B
hundred fifty-two (as modified by section eight hundred fifty-five) of
the internal revenue code, plus the amount taxable under paragraph three
of subdivision (b) of section eight hundred fifty-two of that code,
subject to the modifications required by section fourteen hundred
fifty-three of this article. However, the deduction under the internal
revenue code for dividends paid by the captive REIT or captive RIC to
any member of the affiliated group that includes the corporation that
directly or indirectly owns over fifty percent of the voting stock of
the captive REIT or captive RIC will be limited to the following
percentages: (A) fifty percent for taxable years beginning on or after
January first, two thousand eight and before January first, two thousand
nine; (B) twenty-five percent for taxable years beginning on or after
January first, two thousand nine and before January first, two thousand
eleven; and (C) zero percent for taxable years beginning on or after
January first, two thousand eleven. The term "affiliated group" means
"affiliated group" as defined in section fifteen hundred four of the
internal revenue code, but without regard to the exceptions provided for
in subsection (b) of SUCH section fifteen hundred four.
(III) IN THE CASE OF AN OVERCAPITALIZED CAPTIVE INSURANCE COMPANY
REQUIRED UNDER THIS SUBSECTION TO BE INCLUDED IN A COMBINED RETURN,
ENTIRE NET INCOME MUST BE COMPUTED AS REQUIRED BY SECTION FOURTEEN
HUNDRED FIFTY-THREE OF THIS ARTICLE.
S 8. Subdivision (a) of section 1500 of the tax law, as amended by
chapter 188 of the laws of 2003, is amended to read as follows:
(a) The term "insurance corporation" includes a corporation, associ-
ation, joint stock company or association, person, society, aggregation
or partnership, by whatever name known, doing an insurance business,
and, notwithstanding the provisions of section fifteen hundred twelve of
this article, shall include (1) a risk retention group as defined in
subsection (n) of section five thousand nine hundred two of the insur-
ance law, (2) the state insurance fund and (3) a corporation, associ-
ation, joint stock company or association, person, society, aggregation
or partnership doing an insurance business as a member of the New York
insurance exchange described in section six thousand two hundred one of
the insurance law. The definition of the "state insurance fund"
contained in this subdivision shall be limited in its effect to the
provisions of this article and the related provisions of this chapter
and shall have no force and effect other than with respect to such
provisions. The term "insurance corporation" shall also include a
captive insurance company doing a captive insurance business, as defined
in subsections (c) and (b), respectively, of section seven thousand two
of the insurance law; provided, however, "insurance corporation" shall
not include the metropolitan transportation authority, or a public bene-
fit corporation or not-for-profit corporation formed by a city with a
population of one million or more pursuant to subsection (a) of section
seven thousand five of the insurance law, each of which is expressly
exempt from the payment of fees, taxes or assessments, whether state or
local; AND PROVIDED FURTHER "INSURANCE CORPORATION" DOES NOT INCLUDE ANY
OVERCAPITALIZED CAPTIVE INSURANCE COMPANY. The term "insurance corpo-
ration" shall also include an unauthorized insurer operating from an
office within the state, pursuant to paragraph five of subsection (b) of
section one thousand one hundred one and subsection (i) of section two
thousand one hundred seventeen of the insurance law.
S 9. Subdivision (a) of section 1502-b of the tax law, as separately
amended by chapter 188 and section 3 of part H3 of chapter 62 of the
laws of 2003, is amended to read as follows:
S. 57--B 97 A. 157--B
(a) In lieu of the taxes and tax surcharge imposed by sections fifteen
hundred one, fifteen hundred two-a, fifteen hundred five-a, and fifteen
hundred ten of this article, every captive insurance company licensed by
the superintendent of insurance pursuant to the provisions of article
seventy of the insurance law, other than the metropolitan transportation
authority and a public benefit corporation or not-for-profit corporation
formed by a city with a population of one million or more pursuant to
subsection (a) of section seven thousand five of the insurance law, each
of which is expressly exempt from the payment of fees, taxes or assess-
ments whether state or local, AND OTHER THAN AN OVERCAPITALIZED CAPTIVE
INSURANCE COMPANY, shall, for the privilege of exercising its corporate
franchise, pay a tax on (1) all gross direct premiums, less return
premiums thereon, written on risks located or resident in this state and
(2) all assumed reinsurance premiums, less return premiums thereon,
written on risks located or resident in this state. The rate of the tax
imposed on gross direct premiums shall be four-tenths of one percent on
all or any part of the first twenty million dollars of premiums, three-
tenths of one percent on all or any part of the second twenty million
dollars of premiums, two-tenths of one percent on all or any part of the
third twenty million dollars of premiums, and seventy-five thousandths
of one percent on each dollar of premiums thereafter. The rate of the
tax on assumed reinsurance premiums shall be two hundred twenty-five
thousandths of one percent on all or any part of the first twenty
million dollars of premiums, one hundred and fifty thousandths of one
percent on all or any part of the second twenty million dollars of
premiums, fifty thousandths of one percent on all or any part of the
third twenty million dollars of premiums and twenty-five thousandths of
one percent on each dollar of premiums thereafter. The tax imposed by
this section shall be equal to the greater of (i) the sum of the tax
imposed on gross direct premiums and the tax imposed on assumed reinsur-
ance premiums or (ii) five thousand dollars.
S 10. This act shall take effect immediately and apply to taxable
years beginning on or after January 1, 2009; provided, however that the
amendments to subparagraph 1 of paragraph (b) of subdivision 4 of
section 211 of the tax law made by section three of this act shall not
affect the expiration of such subparagraph and shall be deemed expired
therewith; the amendments to subsection (d) and paragraph 4 of
subsection (m) of section 1452 of the tax law made by sections four and
five of this act, respectively, shall not affect the expiration and
repeal of such subsection and paragraph and shall be deemed expired and
repealed therewith; and the amendments to paragraph 3 of subsection (f)
of section 1462 of the tax law made by section seven of this act shall
not affect the expiration and reversion of such paragraph and shall
expire and be deemed repealed therewith.
PART F-1
Section 1. Subparagraph (A) of paragraph 1 of subsection (b) of
section 631 of the tax law is amended by adding a new clause 1 to read
as follows:
(1) FOR PURPOSES OF THIS SUBPARAGRAPH, THE TERM "REAL PROPERTY LOCATED
IN THIS STATE" INCLUDES AN INTEREST IN A PARTNERSHIP, LIMITED LIABILITY
CORPORATION, S CORPORATION, OR NON-PUBLICLY TRADED C CORPORATION WITH
ONE HUNDRED OR FEWER SHAREHOLDERS (HEREINAFTER THE "ENTITY") THAT OWNS
REAL PROPERTY THAT IS LOCATED IN NEW YORK AND HAS A FAIR MARKET VALUE
THAT EQUALS OR EXCEEDS FIFTY PERCENT OF ALL THE ASSETS OF THE ENTITY ON
S. 57--B 98 A. 157--B
THE DATE OF SALE OR EXCHANGE OF THE TAXPAYER'S INTEREST IN THE ENTITY.
ONLY THOSE ASSETS THAT THE ENTITY OWNED FOR AT LEAST TWO YEARS BEFORE
THE DATE OF THE SALE OR EXCHANGE OF THE TAXPAYER'S INTEREST IN THE ENTI-
TY ARE TO BE USED IN DETERMINING THE FAIR MARKET VALUE OF ALL THE ASSETS
OF THE ENTITY ON THE DATE OF SALE OR EXCHANGE. THE GAIN OR LOSS DERIVED
FROM NEW YORK SOURCES FROM THE TAXPAYER'S SALE OR EXCHANGE OF AN INTER-
EST IN AN ENTITY THAT IS SUBJECT TO THE PROVISIONS OF THIS SUBPARAGRAPH
IS THE TOTAL GAIN OR LOSS FOR FEDERAL INCOME TAX PURPOSES FROM THAT SALE
OR EXCHANGE MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE FAIR
MARKET VALUE OF THE REAL PROPERTY LOCATED IN NEW YORK ON THE DATE OF
SALE OR EXCHANGE AND THE DENOMINATOR OF WHICH IS THE FAIR MARKET VALUE
OF ALL THE ASSETS OF THE ENTITY ON THE DATE OF SALE OR EXCHANGE.
S 2. This act shall take effect immediately and shall apply to sales
or exchanges of entity interests that occur thirty or more days after
the date this act becomes law.
PART G-1
Section 1. Paragraph (a) of subdivision 1 of section 197-b of the tax
law, as amended by section 1 of part JJ-1 of chapter 57 of the laws of
2008, is amended to read as follows:
(a) For taxable years beginning on or after January first, nineteen
hundred seventy-seven, every taxpayer subject to tax under section one
hundred eighty-two, one hundred eighty-two-a, former section one hundred
eighty-two-b, one hundred eighty-four, one hundred eighty-six-a or one
hundred eighty-six-e of this article, must pay in each year an amount
equal to (i) twenty-five percent of the tax imposed under each of such
sections for the preceding taxable year if the preceding year's tax
exceeded one thousand dollars but was equal to or less than one hundred
thousand dollars, or (ii) [thirty] FORTY percent of the tax imposed
under any of these sections for the preceding taxable year if the
preceding year's tax exceeded one hundred thousand dollars. If the
preceding year's tax under section one hundred eighty-four, one hundred
eighty-six-a or one hundred eighty-six-e of this article exceeded one
thousand dollars and the taxpayer is subject to the tax surcharge
imposed by section one hundred eighty-four-a or one hundred eighty-six-c
of this article, respectively, the taxpayer must also pay in each such
year an amount equal to (i) twenty-five percent of the tax surcharge
imposed under such section for the preceding taxable year if the preced-
ing year's tax exceeded one thousand dollars but was equal to or less
than one hundred thousand dollars, or (ii) [thirty] FORTY percent of the
tax surcharge imposed under that section for the preceding taxable year
if the preceding year's tax exceeded one hundred thousand dollars. The
amount or amounts must be paid with the return or report required to be
filed with respect to the tax or tax surcharge for the preceding taxable
year or with an application for extension of the time for filing the
return or report.
S 2. Subdivision (a) of section 213-b of the tax law, as amended by
section 2 of part JJ-1 of chapter 57 of the laws of 2008, is amended to
read as follows:
(a) First installments for certain taxpayers.--In privilege periods of
twelve months ending at any time during the calendar year nineteen
hundred seventy and thereafter, every taxpayer subject to the tax
imposed by section two hundred nine of this chapter must pay with the
report required to be filed for the preceding privilege period, or with
an application for extension of the time for filing the report, an
S. 57--B 99 A. 157--B
amount equal to (i) twenty-five percent of the preceding year's tax if
the preceding year's tax exceeded one thousand dollars but was equal to
or less than one hundred thousand dollars, or (ii) [thirty] FORTY
percent of the preceding year's tax if the preceding year's tax exceeded
one hundred thousand dollars. If the preceding year's tax under section
two hundred nine of this chapter exceeded one thousand dollars and the
taxpayer is subject to the tax surcharge imposed by section two hundred
nine-B of this chapter, the taxpayer must also pay with the tax
surcharge report required to be filed for the preceding privilege peri-
od, or with an application for extension of the time for filing the
report, an amount equal to (i) twenty-five percent of the tax surcharge
imposed for the preceding year if the preceding year's tax was equal to
or less than one hundred thousand dollars, or (ii) [thirty] FORTY
percent of the tax surcharge imposed for the preceding year if the
preceding year's tax exceeded one hundred thousand dollars.
S 3. Subsection (a) of section 1461 of the tax law, as amended by
section 3 of part JJ-1 of chapter 57 of the laws of 2008, is amended to
read as follows:
(a) Every taxpayer subject to the tax imposed by section fourteen
hundred fifty-one must pay an amount equal to (i) twenty-five percent of
the preceding year's tax if the preceding year's tax exceeded one thou-
sand dollars but was equal to or less than one hundred thousand dollars,
or (ii) [thirty] FORTY percent of the preceding year's tax if the
preceding year's tax exceeded one hundred thousand dollars. The amount
must be paid with the return required to be filed for the preceding
taxable year or with an application for an extension of the time for
filing the return. If the preceding year's tax under section fourteen
hundred fifty-one OF THIS ARTICLE exceeded one thousand dollars and the
taxpayer is subject to the tax surcharge imposed by section fourteen
hundred fifty-five-B OF THIS ARTICLE, the taxpayer must also pay with
the tax surcharge return required to be filed for the preceding taxable
year, or with an application for an extension of the time for filing the
return, an amount equal to (i) twenty-five percent of the tax surcharge
imposed for the preceding year if the preceding year's tax was equal to
or less than one hundred thousand dollars, or (ii) [thirty] FORTY
percent of the tax surcharge imposed for the preceding year if the
preceding year's tax exceeded one hundred thousand dollars.
S 4. Paragraph 1 of subdivision (a) of section 1514 of the tax law, as
amended by section 4 of part JJ-1 of chapter 57 of the laws of 2008, is
amended to read as follows:
(1) Except as otherwise provided in paragraph two of this subdivision,
for taxable years beginning on or after January first, nineteen hundred
seventy-six, every taxpayer subject to tax under this article must pay
in each year an amount equal to (i) twenty-five percent of the tax
imposed under this article for the preceding taxable year if the preced-
ing year's tax exceeded one thousand dollars but was equal to or less
than one hundred thousand dollars, or (ii) [thirty] FORTY percent of the
tax imposed under this article for the preceding taxable year if the
preceding year's tax exceeded one hundred thousand dollars. If the
preceding year's tax exceeded one thousand dollars and the taxpayer is
subject to the tax surcharge imposed by section fifteen hundred five-a
of this article, the taxpayer must also pay an amount equal to (i) twen-
ty-five percent of the tax surcharge imposed under section fifteen
hundred five-a for the preceding taxable year if the preceding year's
tax was equal to or less than one hundred thousand dollars, or (ii)
[thirty] FORTY percent of the tax surcharge imposed for the preceding
S. 57--B 100 A. 157--B
taxable year if the preceding year's tax exceeded one hundred thousand
dollars.
S 5. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2010.
PART H-1
Section 1. Paragraph 3 of subsection (c) of section 658 of the tax
law, as amended by section 1 of part AA-1 of chapter 57 of the laws of
2008, is amended to read as follows:
(3) Filing fees. (A) Every subchapter K limited liability company,
every limited liability company that is a disregarded entity for federal
income tax purposes, and every [limited liability] partnership [under
article eight-B of the partnership law and every foreign limited liabil-
ity partnership,] which has any income derived from New York sources,
determined in accordance with the applicable rules of section six
hundred thirty-one of this article as in the case of a nonresident indi-
vidual, shall, within thirty days after the last day of the taxable
year, make a payment of a filing fee. The amount of the filing fee is
the amount set forth in subparagraph (B) of this paragraph. The minimum
filing fee is twenty-five dollars for taxable years beginning in two
thousand eight and [after] THEREAFTER. Limited liability companies that
are disregarded [entitled] ENTITIES for federal income tax purposes must
pay a filing fee of twenty-five dollars for taxable years beginning on
or after January first, two thousand eight.
(B) The filing fee will be based on the New York source gross income
of the limited liability company or [limited liability] partnership for
the taxable year immediately preceding the taxable year for which the
fee is due. If the limited liability company or [limited liability]
partnership does not have any New York source gross income for the taxa-
ble year immediately preceding the taxable year for which the fee is
due, the limited liability company or [limited liability] partnership
shall pay the minimum filing fee. PARTNERSHIPS, OTHER THAN LIMITED
LIABILITY PARTNERSHIPS UNDER ARTICLE EIGHT-B OF THE PARTNERSHIP LAW AND
FOREIGN LIMITED LIABILITY PARTNERSHIPS, WITH LESS THAN ONE MILLION
DOLLARS IN NEW YORK SOURCE GROSS INCOME ARE EXEMPT FROM THE FILING FEE.
New York source gross income is the sum of the partners' or members'
shares of federal gross income from the [limited liability] partnership
or limited liability company derived from or connected with New York
sources, determined in accordance with the provisions of section six
hundred thirty-one of this article as if those provisions and any
related provisions expressly referred to a computation of federal gross
income from New York sources. For this purpose, federal gross income is
computed without any allowance or deduction for cost of goods sold.
The amount of the filing fee for taxable years beginning on or after
January first, two thousand eight will be determined in accordance with
the following table:
If the New York source gross income is: The fee is:
not more than $100,000 $25
more than $100,000 but not over $250,000 $50
more than $250,000 but not over $500,000 $175
more than $500,000 but not over $1,000,000 $500
more than $1,000,000 but not over $5,000,000 $1,500
more than $5,000,000 but not over $25,000,000 $3,000
Over $25,000,000 $4,500
S. 57--B 101 A. 157--B
(C) No credits provided by this article may be taken against the fee
imposed by this paragraph.
(D) Where the filing fee is not timely paid, it shall be paid upon
notice and demand and shall be assessed, collected and paid in the same
manner as taxes, and for those purposes any reference in this article to
tax imposed by this article shall be deemed also to refer to this filing
fee.
S 2. Subsection (a) of section 1304-C of the tax law, as amended by
section 5 of part AA-1 of chapter 57 of the laws of 2008, is amended to
read as follows:
(a) In addition to any other taxes or fees authorized by this article
or any other law, any city imposing the taxes authorized by this article
is hereby authorized and empowered to adopt and amend local laws provid-
ing that every subchapter K limited liability company (as such term is
defined in subsection (b) of section thirteen hundred two of this arti-
cle), every limited liability company that is a disregarded entity for
federal income tax purposes and every [limited liability] partnership
[under article eight-B of the partnership law and every foreign limited
liability partnership,] which has any income derived from sources within
such city, determined in accordance with the applicable rules of section
six hundred thirty-one of this chapter as in the case of a state nonres-
ident individual (except that in making that determination any refer-
ences in section six hundred thirty-one of this chapter to "New York
source" or "New York sources" shall be read as references to "New York
city source" or "New York city sources" and any references in that
section to "this state" or "the state" shall be read as references to
"this city" or "the city"), shall within thirty days after the last day
of the taxable year make a payment of a filing fee. The amount of the
filing fee shall be the amount determined under paragraph three of
subsection (c) of section six hundred fifty-eight of this chapter,
except that in making that determination any references in that section
to "New York source gross income" must be read as reference to "New York
city source gross income". Any local law imposing the filing fee author-
ized by this section shall provide that where the filing fee is not
timely paid, it shall be paid upon notice and demand and shall be
assessed, collected and paid in the same manner as the taxes imposed
pursuant to the authority of this article, and for these purposes any
reference in the local law imposing those taxes to the taxes imposed by
that local law shall be deemed also to refer to the filing fee imposed
pursuant to the authority of this section.
S 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2009.
PART I-1
Section 1. Paragraph (a) of subdivision 1 of section 471-b of the tax
law, as amended by section 2 of part QQ-1 of chapter 57 of the laws of
2008, is amended to read as follows:
(a) Such tax on tobacco products other than snuff shall be at the rate
of [thirty-seven] FORTY-SIX percent of the wholesale price, and is
intended to be imposed only once upon the sale of any tobacco products
other than snuff.
S 2. Section 471-c of the tax law, as separately amended by section 3
of part QQ-1 of chapter 57 and chapter 552 of the laws of 2008, is
amended to read as follows:
S. 57--B 102 A. 157--B
S 471-c. Use tax on tobacco products. (A) There is hereby imposed and
shall be paid a tax on all tobacco products used in the state by any
person, except that no such tax shall be imposed (1) if the tax provided
in section four hundred seventy-one-b of this article is paid, or (2) on
the use of tobacco products which are exempt from the tax imposed by
said section, or (3) on the use of two hundred fifty cigars or less, or
five pounds or less of tobacco other than roll-your-own tobacco, or
thirty-six ounces or less of roll-your-own tobacco brought into the
state on, or in the possession of, any person.
[(a)] (I) Such tax on tobacco products other than snuff shall be at
the rate of [thirty-seven] FORTY-SIX percent of the wholesale price.
[(b)] (II) Such tax on snuff shall be at the rate of ninety-six cents
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.
(B) 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 the other provisions of this 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 3. This act shall take effect immediately.
PART J-1
Section 1. Subdivision 4 of section 22 of the public housing law, as
amended by section 1 of part XX-1 of chapter 57 of the laws of 2008, is
amended to read as follows:
4. Statewide limitation. The aggregate dollar amount of credit which
the commissioner may allocate to eligible low-income buildings under
this article shall be [twenty] TWENTY-FOUR million dollars. The limita-
tion provided by this subdivision applies only to allocation of the
aggregate dollar amount of credit by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
S 2. Paragraph 7 of subdivision (b) of section 18 of the tax law, as
added by section 2 of part CC of chapter 63 of the laws of 2000, is
amended to read as follows:
(7) [Bond in lieu of recapture. In the case of a disposition of a
building or an interest therein, the taxpayer shall be discharged from
liability for any recapture under this subdivision by reason of such
disposition if the taxpayer furnishes to the commissioner a bond or
other security acceptable to the commissioner in an amount satisfactory
to the commissioner and for the period required by the commissioner,
and] (A) THE CREDIT RECAPTURE REQUIRED UNDER THIS SUBDIVISION WILL NOT
APPLY SOLELY BY REASON OF THE DISPOSITION OF A BUILDING OR AN INTEREST
THEREIN IF it is reasonably expected that such building will continue to
be operated as an eligible low-income building for the remaining compli-
ance period with respect to such building.
S. 57--B 103 A. 157--B
(B) STATUTE OF LIMITATIONS. IF A BUILDING (OR AN INTEREST THEREIN) IS
DISPOSED OF DURING ANY TAXABLE YEAR AND THERE IS ANY REDUCTION IN THE
QUALIFIED BASIS OF SUCH BUILDING WHICH RESULTS IN AN INCREASE IN TAX
UNDER THIS SECTION FOR SUCH TAXABLE OR ANY SUBSEQUENT TAXABLE YEAR, THEN
(I) THE STATUTORY PERIOD FOR THE ASSESSMENT OF ANY DEFICIENCY WITH
RESPECT TO SUCH INCREASE IN TAX WILL NOT EXPIRE BEFORE THE EXPIRATION OF
THREE YEARS FROM THE DATE THE COMMISSIONER OF HOUSING AND COMMUNITY
RENEWAL IS NOTIFIED BY THE TAXPAYER (IN SUCH MANNER AS THE COMMISSIONER
OF HOUSING AND COMMUNITY RENEWAL MAY PRESCRIBE) OF SUCH REDUCTION IN
QUALIFIED BASIS, AND
(II) SUCH DEFICIENCY MAY BE ASSESSED BEFORE THE EXPIRATION OF SUCH
THREE-YEAR PERIOD NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW OR
RULE OF LAW WHICH WOULD OTHERWISE PREVENT SUCH ASSESSMENT.
S 3. This act shall take effect immediately.
PART K-1
Section 1. Section 502 of the tax law is amended by adding a new
subdivision 6 to read as follows:
6. A. THE COMMISSIONER MAY REQUIRE THE USE OF DECALS AS EVIDENCE THAT
A CARRIER HAS A VALID CERTIFICATE OF REGISTRATION FOR EACH MOTOR VEHICLE
OPERATED OR TO BE OPERATED ON THE PUBLIC HIGHWAYS OF THIS STATE AS
REQUIRED BY PARAGRAPH A OF SUBDIVISION ONE OF THIS SECTION. IF THE
COMMISSIONER REQUIRES THE USE OF DECALS, THE COMMISSIONER SHALL ISSUE
FOR EACH MOTOR VEHICLE WITH A VALID CERTIFICATE OF REGISTRATION A DECAL
THAT SHALL BE OF A SIZE AND DESIGN AND CONTAINING SUCH INFORMATION AS
THE COMMISSIONER PRESCRIBES. THE FEE FOR ANY DECAL ISSUED PURSUANT TO
THIS PARAGRAPH IS FOUR DOLLARS. IN THE CASE OF THE LOSS, MUTILATION, OR
DESTRUCTION OF A DECAL, THE COMMISSIONER SHALL ISSUE A NEW DECAL UPON
PROOF OF THE FACTS AND PAYMENT OF FOUR DOLLARS. THE DECAL SHALL BE FIRM-
LY AND CONSPICUOUSLY AFFIXED UPON THE MOTOR VEHICLE FOR WHICH IT IS
ISSUED AS CLOSELY AS PRACTICAL TO THE REGISTRATION OR LICENSE PLATES AND
AT ALL TIMES BE VISIBLE AND LEGIBLE. NO DECAL IS TRANSFERABLE. A DECAL
SHALL BE VALID UNTIL IT EXPIRES OR IS REVOKED, SUSPENDED, OR SURREN-
DERED.
B. THE COMMISSIONER MAY REQUIRE THE USE OF SPECIAL DECALS AS EVIDENCE
THAT AN AUTOMOTIVE FUEL CARRIER HAS A VALID SPECIAL CERTIFICATE OF
REGISTRATION FOR EACH MOTOR VEHICLE OPERATED OR TO BE OPERATED ON THE
PUBLIC HIGHWAYS OF THIS STATE TO TRANSPORT AUTOMOTIVE FUEL AS REQUIRED
BY PARAGRAPH B OF SUBDIVISION ONE OF THIS SECTION. IF THE COMMISSIONER
REQUIRES THE USE OF SPECIAL DECALS, THE COMMISSIONER SHALL ISSUE FOR
EACH MOTOR VEHICLE WITH A VALID SPECIAL CERTIFICATE OF REGISTRATION A
SPECIAL DECAL THAT SHALL BE DISTINCTIVELY COLORED AND OF A SIZE AND
DESIGN AND CONTAINING SUCH INFORMATION AS THE COMMISSIONER PRESCRIBES.
THE FEE FOR ANY SPECIAL DECAL ISSUED PURSUANT TO THIS PARAGRAPH IS FOUR
DOLLARS. IN THE CASE OF THE LOSS, MUTILATION, OR DESTRUCTION OF A
SPECIAL DECAL, THE COMMISSIONER SHALL ISSUE A NEW SPECIAL DECAL UPON
PROOF OF THE FACTS AND PAYMENT OF FOUR DOLLARS. THE SPECIAL DECAL SHALL
BE FIRMLY AND CONSPICUOUSLY AFFIXED UPON THE MOTOR VEHICLE FOR WHICH IT
IS ISSUED PURSUANT TO THE RULES AND REGULATIONS PRESCRIBED BY THE
COMMISSIONER TO ENABLE THE EASY IDENTIFICATION OF THE AUTOMOTIVE FUEL
CARRIER CERTIFICATE OF REGISTRATION NUMBER AND AT ALL TIMES BE VISIBLE
AND LEGIBLE. NO SPECIAL DECAL IS TRANSFERABLE AND SHALL BE VALID UNTIL
IT EXPIRES OR IS REVOKED, SUSPENDED, OR SURRENDERED.
S. 57--B 104 A. 157--B
C. THE SUSPENSION OR REVOCATION OF ANY CERTIFICATE OF REGISTRATION
ISSUED UNDER THIS ARTICLE SHALL BE DEEMED TO INCLUDE THE SUSPENSION AND
REVOCATION OF ANY DECAL ISSUED UNDER THIS SUBDIVISION.
S 2. Subdivision 5-a of section 509 of the tax law, as amended by
section 4 of part E of chapter 60 of the laws of 2007, is amended to
read as follows:
5-a. To take possession of any certificate of registration which has
been suspended or revoked under the provisions of this article AND ANY
DECAL ISSUED IN CONJUNCTION THEREWITH, and any certificate of registra-
tion which is being used for a motor vehicle other than the one for
which it was issued AND ANY DECAL THAT IS ON A MOTOR VEHICLE OTHER THAN
THE ONE FOR WHICH IT WAS ISSUED, OR TO DIRECT ANY PEACE OFFICER, ACTING
PURSUANT TO HIS OR HER SPECIAL DUTIES, OR ANY POLICE OFFICER OR ANY
EMPLOYEE OF THE DEPARTMENT TO TAKE POSSESSION THEREOF AND RETURN THE
SAME TO THE COMMISSIONER.
S 3. Subdivision 8 of section 509 of the tax law, as amended by
section 5 of part E of chapter 60 of the laws of 2007, is amended to
read as follows:
8. To issue replacement certificates of registration OR DECALS at such
times as the commissioner may deem necessary for the proper and effi-
cient enforcement of the provisions of this article, but not more often
than once every year and to require the surrender of the then outstand-
ing certificates of registration AND DECALS. All of the provisions of
this article with respect to certificates of registration AND DECALS
shall be applicable to replacement certificates of registration AND
DECALS issued hereunder, except that the replacement certificate of
registration OR DECAL shall be issued upon payment of a fee of four
dollars for each motor vehicle and two dollars for any trailer, semi-
trailer, dolly or other device drawn thereby for which a certificate of
registration OR DECAL is required to be issued under this article;
S 4. Paragraph (e) of subdivision 1 of section 512 of the tax law, as
added by section 8 of part E of chapter 60 of the laws of 2007, is
amended to read as follows:
(e) In addition to any other penalty imposed by this chapter, any
person who fails to obtain a certificate of registration OR DECAL as
required under this article shall, after due notice and an opportunity
for a hearing, for a first violation be liable for a civil fine not less
than five hundred dollars but not to exceed two thousand dollars and for
a second or subsequent violation within three years following a prior
finding of violation be liable for a civil fine not less than one thou-
sand dollars but not to exceed three thousand five hundred dollars.
S 5. Clause (i) of subparagraph (A) of paragraph 1 of subdivision (a)
of section 1815 of the tax law, as amended by section 10 of part E of
chapter 60 of the laws of 2007, is amended to read as follows:
(i) Use or cause or permit to be used, any public highway in this
state for the operation of a motor vehicle subject to the provisions of
article twenty-one of this chapter without first applying for and
obtaining the certificate of registration required under such article OR
A DECAL THAT HAS BEEN SUSPENDED OR REVOKED OR THAT WAS ISSUED FOR A
MOTOR VEHICLE OTHER THAN THE ONE ON WHICH AFFIXED. THE OPERATION OF ANY
MOTOR VEHICLE ON ANY PUBLIC HIGHWAY OF THIS STATE WITHOUT A DECAL
REQUIRED UNDER SUCH ARTICLE SHALL BE PRESUMPTIVE EVIDENCE THAT A CERTIF-
ICATE OF REGISTRATION OR DECAL HAS NOT BEEN OBTAINED FOR SUCH MOTOR
VEHICLE;
S 6. This act shall take effect immediately.
S. 57--B 105 A. 157--B
PART L-1
Section 1. Paragraph (a) of subdivision 1 of section 1003 of the
racing, pari-mutuel wagering and breeding law, as amended by chapter 18
of the laws of 2008, 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 [chapter] 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 geograph-
ic 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, 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 [nine] TEN;
provided, however, that any party to such agreement may elect to termi-
nate 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 [nine] TEN; and (iv) no
in-home simulcasting in the thoroughbred special betting district shall
occur without the approval of the regional thoroughbred track.
S. 57--B 106 A. 157--B
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
chapter 18 of the laws of 2008, 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 [nine] TEN, 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 chapter 18
of the laws of 2008, 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 [nine] TEN and on any day regardless of whether
or not a franchised corporation is conducting a race meeting in Saratoga
county at Saratoga thoroughbred racetrack after June thirtieth, two
thousand [nine] TEN. 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 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
and breeding law, as amended by chapter 18 of the laws of 2008, 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 [nine] TEN. 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 chapter 18
of the laws of 2008, 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 [nine] TEN. 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 agree-
ment 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-
S. 57--B 107 A. 157--B
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 chapter 18 of the laws of 2008,
is amended to read as follows:
Notwithstanding any other provision of this chapter, for the period
July twenty-fifth, two thousand one through September [ninth] EIGHTH,
two thousand [eight] NINE, 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 chapter 18 of the laws of 2008, 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, [2009] 2010; 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
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 chapter
18 of the laws of 2008, 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, [2009] 2010; 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 chapter 115 of the
laws of 2008, 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
S. 57--B 108 A. 157--B
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
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 [nine] TEN, such tax on all
wagers shall be one and six-tenths per centum, plus, in each such peri-
od, 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
[nine] TEN, such payment shall be seven-tenths of one per centum of such
pools.
S. 57--B 109 A. 157--B
S 10. Paragraph (a) of subdivision 1 of section 238 of the racing,
pari-mutuel wagering and breeding law, as amended by chapter 18 of the
laws of 2008, 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
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 [nine] TEN, such tax on all
wagers shall be one and six-tenths per centum, plus, in each such peri-
od, 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
S. 57--B 110 A. 157--B
first, two thousand one through December thirty-first, two thousand
[eight] TEN, 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 chapter 18 of the laws of 2008, 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 [nine] TEN.
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 M-1
Section 1. Paragraph 1 of subdivision (j) of section 1111 of the tax
law, as amended by section 1 of part E of chapter 85 of the laws of
2002, is amended to read as follows:
(1) The tax required to be prepaid pursuant to section eleven hundred
three of this article shall be computed by multiplying the base retail
price by a tax rate of [seven] EIGHT percent and rounding the result
thereof to the nearest whole cent per package.
S 2. This act shall take effect June 1, 2009; and shall apply to sales
made and uses occurring on or after that date in accordance with appli-
cable transitional provisions in article 28 of the tax law.
PART N-1
Section 1. Paragraph 17 of subdivision (b) of section 1101 of the tax
law, as added by chapter 309 of the laws of 1996, is amended to read as
follows:
(17) Commercial aircraft. Aircraft used primarily (i) to transport
persons or property, for hire, (ii) by the purchaser of the aircraft
[primarily] to transport such person's tangible personal property in the
conduct of such person's business, or (iii) for both such purposes.
TRANSPORTING PERSONS FOR HIRE DOES NOT INCLUDE TRANSPORTING AGENTS,
EMPLOYEES, OFFICERS, MEMBERS, PARTNERS, MANAGERS OR DIRECTORS OF AFFIL-
IATED PERSONS. PERSONS ARE AFFILIATED PERSONS WITH RESPECT TO EACH OTHER
WHERE ONE OF THE PERSONS HAS AN OWNERSHIP INTEREST OF MORE THAN FIVE
PERCENT, WHETHER DIRECT OR INDIRECT, IN THE OTHER, OR WHERE AN OWNERSHIP
INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IS HELD
IN EACH OF THE PERSONS BY ANOTHER PERSON OR BY A GROUP OF OTHER PERSONS
THAT ARE AFFILIATED PERSONS WITH RESPECT TO EACH OTHER.
S 2. Subdivision 2 of section 1118 of the tax law, as amended by chap-
ter 651 of the laws of 1999, is amended to read as follows:
(2) In respect to the use of property or services purchased by the
user while a nonresident of this state, except in the case of tangible
personal property or services which the user, in the performance of a
contract, incorporates into real property located in the state. A person
while engaged in any manner in carrying on in this state any employment,
trade, business or profession, shall not be deemed a nonresident with
respect to the use in this state of property or services in such employ-
ment, trade, business or profession. THIS EXEMPTION DOES NOT APPLY TO
S. 57--B 111 A. 157--B
THE USE OF QUALIFIED PROPERTY WHERE THE QUALIFIED PROPERTY IS PURCHASED
PRIMARILY TO CARRY INDIVIDUALS, WHETHER OR NOT FOR HIRE, WHO ARE AGENTS,
EMPLOYEES, OFFICERS, SHAREHOLDERS, MEMBERS, MANAGERS, PARTNERS, OR
DIRECTORS OF (A) THE PURCHASER, WHERE ANY OF THOSE INDIVIDUALS WAS A
RESIDENT OF THIS STATE WHEN THE QUALIFIED PROPERTY WAS PURCHASED OR (B)
ANY AFFILIATED PERSON THAT WAS A RESIDENT WHEN THE QUALIFIED PROPERTY
WAS PURCHASED. FOR PURPOSES OF THIS SUBDIVISION: (I) PERSONS ARE AFFIL-
IATED PERSONS WITH RESPECT TO EACH OTHER WHERE ONE OF THE PERSONS HAS AN
OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDI-
RECT, IN THE OTHER, OR WHERE AN OWNERSHIP INTEREST OF MORE THAN FIVE
PERCENT, WHETHER DIRECT OR INDIRECT, IS HELD IN EACH OF THE PERSONS BY
ANOTHER PERSON OR BY A GROUP OF OTHER PERSONS THAT ARE AFFILIATED
PERSONS WITH RESPECT TO EACH OTHER; (II) "QUALIFIED PROPERTY" MEANS
AIRCRAFT, VESSELS AND MOTOR VEHICLES; AND (III) "CARRY" MEANS TO TAKE
ANY PERSON FROM ONE POINT TO ANOTHER, WHETHER FOR THE BUSINESS PURPOSES
OR PLEASURE OF THAT PERSON.
S 3. This act shall take effect on June 1, 2009, and shall apply to
sales made and uses occurring on or after such date in accordance with
the applicable transitional provisions in sections 1106 and 1217 of the
tax law.
PART O-1
Section 1. Subdivision b of section 1612 of the tax law, as amended by
chapter 140 of the laws of 2008, clauses (D) and (F) of subparagraph
(ii) and subparagraph (iii) of paragraph 1 and paragraph 2 as separately
amended by chapter 286 of the laws of 2008 and clause (G) of subpara-
graph (ii) of paragraph 1 as added and clause (H) of subparagraph (ii)
of paragraph 1 as amended by chapter 286 of the laws of 2008, is amended
to read as follows:
b. 1. Notwithstanding section one hundred twenty-one of the state
finance law, on or before the twentieth day of each month, the division
shall pay into the state treasury, to the credit of the state lottery
fund created by section ninety-two-c of the state finance law, not less
than forty-five percent of the total amount for which tickets have been
sold for games defined in paragraph four of subdivision a of this
section during the preceding month, not less than thirty-five percent of
the total amount for which tickets have been sold for games defined in
paragraph three of subdivision a of this section during the preceding
month, not less than twenty percent of the total amount for which tick-
ets have been sold for games defined in paragraph two of subdivision a
of this section during the preceding month, provided however that for
games with a prize payout of seventy-five percent of the total amount
for which tickets have been sold, the division shall pay not less than
ten percent of sales into the state treasury and not less than twenty-
five percent of the total amount for which tickets have been sold for
games defined in paragraph one of subdivision a of this section during
the preceding month; and the balance of the total revenue after payout
for prizes for games known as "video lottery gaming," (i) less ten
percent of the total revenue wagered after payout for prizes to be
retained by the division for operation, administration, and procurement
purposes; (ii) less a vendor's fee the amount of which is to be paid for
serving as a lottery agent to the track operator of a vendor track:
(A) having fewer than one thousand one hundred video gaming machines,
at a rate of thirty-six percent for the first fifty million dollars
annually, twenty-nine percent for the next hundred million dollars annu-
S. 57--B 112 A. 157--B
ally, and twenty-six percent thereafter of the total revenue wagered at
the vendor track after payout for prizes pursuant to this chapter;
(B) having one thousand one hundred or more video gaming machines, at
a rate of thirty-two percent of the total revenue wagered at the vendor
track after payout for prizes pursuant to this chapter, except for such
facility located in the county of Westchester, in which case the rate
shall be thirty-four percent of the total revenue wagered at the vendor
track after payout for prizes pursuant to this chapter, for a period of
twenty-four months effective beginning April first, two thousand eight;
provided, however, that in the event that the vendor track located in
Westchester county completes a successful restructuring prior to March
thirty-first, two thousand ten, the vendor fee will be reduced to thir-
ty-two percent ninety days following the completion of the successful
restructuring. A successful restructuring is defined as a restructuring
of the existing debt obligations of such vendor track located in West-
chester county that meets the following two conditions:
(i) it requires no more than twenty million dollars of additional
equity invested in such track; and
(ii) results in average net interest costs of less than nine percent.
Notwithstanding the foregoing, the vendor fee at such track will
become thirty-one percent effective April first, two thousand ten and
remain at that level for a period equal to two times the period of time
(measured in days) that the vendor fee was thirty-four percent or until
March thirty-first, two thousand twelve, whichever is later. Notwith-
standing the foregoing, not later than April first, two thousand twelve,
the vendor fee shall become thirty-two percent and remain at that level
thereafter; and except for Aqueduct racetrack, in which case the vendor
fee shall be thirty-eight percent of the total revenue wagered at the
vendor track after payout for prizes pursuant to this chapter;
(C) notwithstanding clauses (A) and (B) of this subparagraph, when the
vendor track is located in an area with a population of less than one
million within the forty mile radius around such track, at a rate of
forty percent for the first fifty million dollars annually, twenty-nine
percent for the next hundred million dollars annually, and twenty-six
percent thereafter of the total revenue wagered at the vendor track
after payout for prizes pursuant to this chapter;
(D) notwithstanding clauses (A), (B) and (C) of this subparagraph,
when the vendor track is located within fifteen miles of a Native Ameri-
can class III gaming facility [or, for a period of five years effective
beginning April first, two thousand eight when the vendor track is
located within Sullivan county and within sixty miles from any gaming
facility in a contiguous state,] at a rate of forty-two percent of the
total revenue wagered at the vendor track after payout for prizes pursu-
ant to this chapter [unless such vendor track relocates outside the
specified geographic area sooner, in which case such rate shall be as
for all other tracks in the applicable clause of this subparagraph];
[(D) notwithstanding clauses (A), (B) and (C) of this subparagraph,
when the vendor track is within fifteen miles of a Native American
gaming facility, at a rate of forty-two percent of the total revenue
wagered at the vendor track after payout for prizes pursuant to this
chapter;]
(E) notwithstanding clauses (A), (B), (C) and (D) of this subpara-
graph, when a Native American class III gaming facility is established,
after the effective date of this subparagraph, within fifteen miles of
the vendor track, at a rate of forty-two percent of the total revenue
wagered after payout for prizes pursuant to this chapter;
S. 57--B 113 A. 157--B
[(F) notwithstanding clauses (A), (B), (C), (D) and (E) of this
subparagraph, the track operator of a vendor track shall be eligible for
a vendor's capital award of up to four percent of the total revenue
wagered at the vendor track after payout for prizes pursuant to this
chapter, which shall be used exclusively for capital project investments
to improve the facilities of the vendor track which promote or encourage
increased attendance at the video lottery gaming facility including, but
not limited to hotels, other lodging facilities, entertainment facili-
ties, retail facilities, dining facilities, events arenas, parking
garages and other improvements that enhance facility amenities; provided
that such capital investments shall be approved by the division, in
consultation with the state racing and wagering board, and that such
vendor track demonstrates that such capital expenditures will increase
patronage at such vendor track's facilities and increase the amount of
revenue generated to support state education programs. The annual amount
of such vendor's capital awards that a vendor track shall be eligible to
receive shall be limited to two million five hundred thousand dollars,
except for Aqueduct racetrack, for which there shall be no vendor's
capital awards. Except for tracks having less than one thousand one
hundred video gaming machines, each track operator shall be required to
co-invest an amount of capital expenditure equal to its cumulative
vendor's capital awards. For all tracks, except for Aqueduct racetrack,
the amount of any vendor's capital award that is not used during any one
year period may be carried over into subsequent years ending before
April first, two thousand thirteen. Any amount attributable to a capital
expenditure approved prior to April first, two thousand thirteen and
completed before April first, two thousand fifteen shall be eligible to
receive the vendor's capital award. In the event that a vendor track's
capital expenditures, approved by the division prior to April first, two
thousand thirteen and completed prior to April first, two thousand
fifteen, exceed the vendor track's cumulative capital award during the
five year period ending April first, two thousand thirteen, the vendor
shall continue to receive the capital award after April first, two thou-
sand thirteen until such approved capital expenditures are paid to the
vendor track subject to any required co-investment. In no event shall
such track facility located in Sullivan county and within sixty miles
from any gaming facility in a contiguous state be eligible for a
vendor's capital award under this section, unless it shall have moved
from such location or the five year period commencing on April first,
two thousand eight has expired, whichever comes first. Any operator of a
vendor track which has received a vendor's capital award, choosing to
divest the capital improvement toward which the award was applied, prior
to reaching the forty year straightline depreciation value of the
improvement, shall reimburse the state in amounts equal to the total of
any such awards. Any capital award not approved for a capital expendi-
ture at a video lottery gaming facility by April first, two thousand
thirteen shall be deposited in the state lottery fund for education aid;
and]
(E-1) FOR PURPOSES OF THIS SUBDIVISION, THE TERM "CLASS III GAMING"
SHALL HAVE THE MEANING DEFINED IN 25 U.S.C. S 2703(8).
(F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
agraph, when a vendor track, is located in Sullivan county and within
sixty miles from any gaming facility in a contiguous state such vendor
fee shall, for a period of five years commencing April first, two thou-
sand eight, be at a rate of forty-two percent of the total revenue
wagered at the vendor track after payout for prizes pursuant to this
S. 57--B 114 A. 157--B
chapter, after which time such rate shall be as for all tracks in clause
(C) of this subparagraph.
[(G) For purposes of this subdivision, the term "class III gaming"
shall have the meaning defined in 25 U.S.C. S 2703(8).]
(G) notwithstanding any other provisions of this section, when a relo-
cated vendor track at which a qualified capital investment has been made
and no fewer than two thousand full-time, permanent employees have been
newly hired, is located in Sullivan county and is within sixty miles
from any gaming facility in a contiguous state, then for a period of
forty years the division shall pay into the state treasury, to the cred-
it of the state lottery fund created by section ninety-two-c of the
state finance law the greater of (i) twenty-five percent of total reven-
ue after payout for prizes for "video lottery games" or (ii) for the
first eight years of operation thirty-eight million dollars, and begin-
ning in the ninth year of operation such amount shall increase annually
by the lesser of the increase in the consumer price index or two percent
plus the division shall retain an amount equal to all actual expenses
related to operations, administration and procurement of the video
lottery terminal operation at the relocated vendor track, provided,
however, such amount retained by the division shall not exceed seven
percent of total revenue after payout of prizes. In addition, in the
event the division makes a payment pursuant to subclause (i) of this
clause, the division shall pay to the credit of the state lottery fund
created by section ninety-two-c of the state finance law 11.11 percent
of the amount by which total revenue after payout for prizes exceeds two
hundred fifteen million dollars, but in no event shall such payment
exceed five million dollars.
The balance shall be paid as a vendor's fee to the track operator of
the relocated vendor track for serving as a lottery agent under this
chapter.
Provided, however, that in the case of a relocated vendor track with a
qualified capital investment, if at any time after July first, two thou-
sand ten the vendor track experiences an employment shortfall, then the
recapture amount shall apply, for only such period as the shortfall
exists.
For the purposes of this section "qualified capital investment" shall
mean an investment of a minimum of one billion dollars as reflected by
audited financial statements of which not less than three hundred
million dollars shall be comprised of equity and/or mezzanine financing
as an initial investment in a county where twelve percent of the popu-
lation is below the federal poverty level as measured by the most recent
Bureau of Census Statistics prior to the qualified capital investment
commencing that results in the construction, development or improvement
of at least one eighteen hole golf course, and the construction and
issuance of certificates of occupancy for hotels, lodging, convention
centers, spas, dining, retail and entertainment venues, parking garages
and other capital improvements at or adjacent to the licensed video
gaming facility or licensed vendor track which promote or encourage
increased attendance at such facilities.
For the purposes of this section, "full-time, permanent employee"
shall mean an employee who has worked at the vendor track or related and
adjacent facilities for a minimum of thirty-five hours per week for not
less than four consecutive weeks and who is entitled to receive the
usual and customary fringe benefits extended to other employees with
comparable rank and duties; or two part-time employees who have worked
at the vendor track or related and adjacent facilities for a combined
S. 57--B 115 A. 157--B
minimum of thirty-five hours per week for not less than four consecutive
weeks and who are entitled to receive the usual and customary fringe
benefits extended to other employees with comparable rank and duties.
For the purpose of this section "employment goal" shall mean two thou-
sand full-time permanent employees.
For the purpose of this section "employment shortfall" shall mean a
level of employment that falls below the employment goal, as certified
annually by vendor's certified accountants and the chairman of the
empire state development corporation.
For the purposes of this section "recapture amount" shall mean the
difference between the amount of the vendor's fee paid to a vendor track
with a qualified capital investment, and the vendor fee otherwise paya-
ble to a vendor track pursuant to clause (F) of this subparagraph, that
is reimbursable by the vendor track to the division for payment into the
state treasury, to the credit of the state lottery fund created by
section ninety-two-c of the state finance law, due to an employment
shortfall pursuant to the following schedule only for the period of the
employment shortfall:
(i) sixty-six percent of the recapture amount if the employment short-
fall is greater than fifty percent of the employment goal;
(ii) sixty percent of the recapture amount if the employment shortfall
is greater than forty percent of the employment goal;
(iii) forty-five percent of the recapture amount if the employment
shortfall is greater than thirty percent of the employment goal;
(iv) twenty percent of the recapture amount if the employment short-
fall is greater than twenty percent of the employment goal;
(v) ten percent of the recapture amount if the employment shortfall is
greater than ten percent of the employment goal.
(H) notwithstanding clauses (A), (B), (C), (D), (E), (F) and (G) of
this subparagraph, the track operator of a vendor track shall be eligi-
ble for a vendor's capital award of up to four percent of the total
revenue wagered at the vendor track after payout for prizes pursuant to
this chapter, which shall be used exclusively for capital project
investments to improve the facilities of the vendor track which promote
or encourage increased attendance at the video lottery gaming facility
including, but not limited to hotels, other lodging facilities, enter-
tainment facilities, retail facilities, dining facilities, events
arenas, parking garages and other improvements that enhance facility
amenities; provided that such capital investments shall be approved by
the division, in consultation with the state racing and wagering board,
and that such vendor track demonstrates that such capital expenditures
will increase patronage at such vendor track's facilities and increase
the amount of revenue generated to support state education programs. The
annual amount of such vendor's capital awards that a vendor track shall
be eligible to receive shall be limited to two million five hundred
thousand dollars, except for Aqueduct racetrack, for which there shall
be no vendor's capital awards. Except for tracks having less than one
thousand one hundred video gaming machines, each track operator shall be
required to co-invest an amount of capital expenditure equal to its
cumulative vendor's capital award. For all tracks, except for Aqueduct
racetrack, the amount of any vendor's capital award that is not used
during any one year period may be carried over into subsequent years
ending before April first, two thousand thirteen. Any amount attribut-
able to a capital expenditure approved prior to April first, two thou-
sand thirteen and completed before April first, two thousand fifteen
shall be eligible to receive the vendor's capital award. IN THE EVENT
S. 57--B 116 A. 157--B
THAT A VENDOR TRACK'S CAPITAL EXPENDITURES, APPROVED BY THE DIVISION
PRIOR TO APRIL FIRST, TWO THOUSAND THIRTEEN AND COMPLETED PRIOR TO APRIL
FIRST, TWO THOUSAND FIFTEEN, EXCEED THE VENDOR TRACK'S CUMULATIVE CAPI-
TAL AWARD DURING THE FIVE YEAR PERIOD ENDING APRIL FIRST, TWO THOUSAND
THIRTEEN, THE VENDOR SHALL CONTINUE TO RECEIVE THE CAPITAL AWARD AFTER
APRIL FIRST, TWO THOUSAND THIRTEEN UNTIL SUCH APPROVED CAPITAL EXPENDI-
TURES ARE PAID TO THE VENDOR TRACK SUBJECT TO ANY REQUIRED CO-INVEST-
MENT. In no event shall any vendor track that receives a vendor fee
pursuant to clause (F) or (G) of this [paragraph] SUBPARAGRAPH be eligi-
ble for a vendor's capital award under this section. Any operator of a
vendor track which has received a vendor's capital award, choosing to
divest the capital improvement toward which the award was applied, prior
to [reaching the forty year straightline depreciation value of the
improvement] THE FULL DEPRECIATION OF THE CAPITAL IMPROVEMENT IN ACCORD-
ANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, shall reimburse the
state in amounts equal to the total of any such awards. ANY CAPITAL
AWARD NOT APPROVED FOR A CAPITAL EXPENDITURE AT A VIDEO LOTTERY GAMING
FACILITY BY APRIL FIRST, TWO THOUSAND THIRTEEN SHALL BE DEPOSITED INTO
THE STATE LOTTERY FUND FOR EDUCATION AID; and
(iii) less an additional vendor's marketing allowance at a rate of ten
percent for the first one hundred million dollars annually and eight
percent thereafter of the total revenue wagered at the vendor track
after payout for prizes to be used by the vendor track for the marketing
and promotion and associated costs of its video lottery gaming oper-
ations and pari-mutuel horse racing operations, as long as any such
costs associated with pari-mutuel horse racing operations simultaneously
encourage increased attendance at such vendor's video lottery gaming
facilities, consistent with the customary manner of marketing comparable
operations in the industry and subject to the overall supervision of the
division; provided, however, that the additional vendor's marketing
allowance shall not exceed eight percent in any year for any operator of
a racetrack located in the county of Westchester or Queens; provided,
however, a vendor track that receives a vendor fee pursuant to clause
(G) of [this] subparagraph (II) OF THIS PARAGRAPH shall not receive the
additional vendor's marketing allowance. In establishing the vendor fee,
the division shall ensure the maximum lottery support for education
while also ensuring the effective implementation of section sixteen
hundred seventeen-a of this article through the provision of reasonable
reimbursements and compensation to vendor tracks for participation in
such program. Within twenty days after any award of lottery prizes, the
division shall pay into the state treasury, to the credit of the state
lottery fund, the balance of all moneys received from the sale of all
tickets for the lottery in which such prizes were awarded remaining
after provision for the payment of prizes as herein provided. Any reven-
ues derived from the sale of advertising on lottery tickets shall be
deposited in the state lottery fund.
2. As consideration for the operation of a video lottery gaming facil-
ity, the division, shall cause the investment in the racing industry of
a portion of the vendor fee received pursuant to paragraph one of this
subdivision in the manner set forth in this subdivision. With the excep-
tion of Aqueduct racetrack, each such track shall dedicate a portion of
its vendor fees, received pursuant to clause (A), (B), (C), (D), (E),
(F), or (G) of subparagraph (ii) of paragraph one of this subdivision,
solely for the purpose of enhancing purses at such track, in an amount
equal to eight and three-quarters percent of the total revenue wagered
at the vendor track after pay out for prizes. In addition, WITH THE
S. 57--B 117 A. 157--B
EXCEPTION OF AQUEDUCT RACETRACK, one and one-quarter percent of total
revenue wagered at the vendor track after pay out for prizes, received
pursuant to clause (A), (B), (C), (D), (E), (F), or (G) of subparagraph
(ii) of paragraph one of this subdivision, shall be distributed to the
appropriate breeding fund for the manner of racing conducted by such
track.
Provided, further, that nothing in this paragraph shall prevent each
track from entering into an agreement, not to exceed five years, with
the organization authorized to represent its horsemen to increase or
decrease the portion of its vendor fee dedicated to enhancing purses at
such track during the years of participation by such track, or to race
fewer dates than required herein.
3. Nothing in paragraph two of this subdivision shall affect any
agreement in effect on or before the effective date of this paragraph.
S 2. Subdivision a of section 1617-a of the tax law, as amended by
section 2 of part Z3 of chapter 62 of the laws of 2003 and paragraph 3
as amended by chapter 18 of the laws of 2008, are amended to read as
follows:
a. The division of the lottery is hereby authorized to license, pursu-
ant to rules and regulations to be promulgated by the division of the
lottery, the operation of video lottery gaming at Aqueduct, Monticello,
Yonkers, Finger Lakes, and Vernon Downs racetracks, or at any other
racetrack licensed pursuant to article three of the racing, pari-mutuel
wagering and breeding law that are located in a county or counties in
which video lottery gaming has been authorized pursuant to local law,
excluding the licensed racetrack commonly referred to in article three
of the racing, pari-mutuel wagering and breeding law as the "New York
state exposition" held in Onondaga county and the racetracks of the
non-profit racing association known as Belmont Park racetrack and the
Saratoga thoroughbred racetrack. Such rules and regulations shall
provide, as a condition of licensure, that racetracks to be licensed are
certified to be in compliance with all state and local fire and safety
codes, that the division is afforded adequate space, infrastructure, and
amenities consistent with industry standards for such video gaming oper-
ations as found at racetracks in other states, that racetrack employees
involved in the operation of video lottery gaming pursuant to this
section are licensed by the racing and wagering board, and such other
terms and conditions of licensure as the division may establish.
Notwithstanding any inconsistent provision of law, video lottery gaming
at a racetrack pursuant to this section shall be deemed an approved
activity for such racetrack under the relevant city, county, town, or
village land use or zoning ordinances, rules, or regulations. No [race-
track] ENTITY LICENSED BY THE DIVISION operating video lottery gaming
pursuant to this section may house such gaming activity in a structure
deemed or approved by the division as "temporary" for a duration of
longer than eighteen-months. NOTHING IN THIS SECTION SHALL PROHIBIT THE
DIVISION FROM LICENSING AN ENTITY TO OPERATE VIDEO LOTTERY GAMING AT AN
EXISTING RACETRACK AS AUTHORIZED IN THIS SUBDIVISION WHETHER OR NOT A
DIFFERENT ENTITY IS LICENSED TO CONDUCT HORSE RACING AND PARI-MUTUEL
WAGERING AT SUCH RACETRACK PURSUANT TO ARTICLE TWO OR THREE OF THE
RACING, PARI-MUTUEL WAGERING AND BREEDING LAW.
The division, in consultation with the racing and wagering board,
shall establish standards for approval of the temporary and permanent
physical layout and construction of any facility or building devoted to
a video lottery gaming operation. In reviewing such application for the
construction or reconstruction of facilities related or devoted to the
S. 57--B 118 A. 157--B
operation or housing of video lottery gaming operations, the division,
in consultation with the racing and wagering board, shall ensure that
such facility:
(1) possesses superior consumer amenities and conveniences to encour-
age and attract the patronage of tourists and other visitors from across
the region, state, and nation.
(2) has adequate motor vehicle parking facilities to satisfy patron
requirements.
(3) has a physical layout and location that facilitates access to and
from the horse racing track portion of such facility to encourage patro-
nage of live horse racing events that are conducted at such track.
S 3. Section 1617-a of the tax law is amended by adding a new subdivi-
sion e to read as follows:
E. THE DIVISION SHALL NOT APPROVE THE CONSTRUCTION OR ALTERATION OF
ANY FACILITY OR BUILDING DEVOTED TO THE OPERATION OR HOUSING OF VIDEO
LOTTERY GAMING UNTIL THE PERSON OR ENTITY SELECTED TO OPERATE SUCH VIDEO
LOTTERY GAMING SHALL HAVE SUBMITTED TO THE DIVISION A STATEMENT OF THE
LOCATION OF THE PROPOSED FACILITY OR BUILDING, TOGETHER WITH A PLAN OF
SUCH RACETRACK, AND PLANS OF ALL EXISTING BUILDINGS, SEATING STANDS AND
OTHER STRUCTURES ON THE GROUNDS OF SUCH RACETRACK, IN SUCH FORM AS THE
DIVISION MAY PRESCRIBE, AND SUCH PLANS SHALL HAVE BEEN APPROVED BY THE
DIVISION. THE DIVISION, AT THE EXPENSE OF THE APPLICANT, MAY ORDER SUCH
ENGINEERING EXAMINATION THEREOF AS THE DIVISION MAY DEEM NECESSARY.
SUCH CONSTRUCTION OR ALTERATION MAY BE MADE ONLY WITH THE APPROVAL OF
THE DIVISION AND AFTER EXAMINATION AND INSPECTION OF THE PLANS THEREOF
AND THE ISSUANCE OF A PERMIT THEREFOR BY THE DIVISION.
S 4. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2008; provided,
however, that the amendment made to section 1617-a of the tax law by
sections two and three of this act shall not affect the repeal of such
section as provided in section 4 of part C of chapter 383 of the laws of
2001, as amended, and shall be deemed repealed therewith.
PART P-1
Section 1. Clauses (G) and (H) of subparagraph (i) of paragraph 8 of
subdivision (b) of section 1101 of the tax law, as amended by chapter 61
of the laws of 1989 and as relettered by chapter 190 of the laws of
1990, are amended and a new clause (I) is added to read as follows:
(G) Any other person making sales to persons within the state of
tangible personal property or services, the use of which is taxed by
this article, who may be authorized by the commissioner of taxation and
finance to collect such tax by part IV of this article; [and]
(H) The state of New York, any of its agencies, instrumentalities,
public corporations (including a public corporation created pursuant to
agreement or compact with another state or Canada) or political subdivi-
sions when such entity sells services or property of a kind ordinarily
sold by private persons[.]; AND
(I) A SELLER OF TANGIBLE PERSONAL PROPERTY OR SERVICES, THE USE OF
WHICH IS TAXED BY THIS ARTICLE IF EITHER (I) AN AFFILIATED PERSON THAT
IS A VENDOR AS OTHERWISE DEFINED IN THIS PARAGRAPH USES IN THE STATE
TRADEMARKS, SERVICE MARKS, OR TRADE NAMES THAT ARE THE SAME AS THOSE THE
SELLER USES; OR (II) AN AFFILIATED PERSON ENGAGES IN ACTIVITIES IN THE
STATE THAT INURE TO THE BENEFIT OF THE SELLER, IN ITS DEVELOPMENT OR
MAINTENANCE OF A MARKET FOR ITS GOODS OR SERVICES IN THE STATE, TO THE
EXTENT THAT THOSE ACTIVITIES OF THE AFFILIATE ARE SUFFICIENT TO SATISFY
S. 57--B 119 A. 157--B
THE NEXUS REQUIREMENT OF THE UNITED STATES CONSTITUTION. FOR PURPOSES OF
THIS CLAUSE, "AFFILIATED PERSON" HAS THE SAME MEANING AS IN CLAUSE (B)
OF SUBPARAGRAPH (V) OF THIS PARAGRAPH. NOTHING IN THIS CLAUSE SHALL BE
CONSTRUED TO NARROW THE SCOPE OF ANY OTHER PROVISION IN THIS PARAGRAPH.
S 2. This act shall take effect June 1, 2009 and shall apply to sales
made or uses occurring on or after such date in accordance with the
applicable transitional provisions of sections 1106 and 1217 of the tax
law.
PART Q-1
Section 1. Section 1617 of the tax law, as added by section 3 of part
D of chapter 383 of the laws of 2001, is amended to read as follows:
S 1617. Joint, multi-jurisdiction, and out-of-state lottery. The
director may enter into an agreement with a government-authorized group
of one or more other jurisdictions providing for the operation and
administration of a joint, multi-jurisdiction, and out-of-state
lottery[, except the director may not agree to participate in the games
of more than one such group at any single time]. Such a joint, multi-
jurisdiction, and out-of-state lottery game or games may include a
combined drawing, a combined prize pool, the transfer of sales and prize
monies to other jurisdictions as may be necessary, and such other coop-
erative arrangements as the director deems necessary or desirable.
S 2. This act shall take effect immediately.
PART R-1
Section 1. Paragraph 1 of subdivision (a) of section 1160 of the tax
law, as added by chapter 190 of the laws of 1990, is amended to read as
follows:
(1) [On and after June first, nineteen hundred ninety, in] IN addition
to any tax imposed under any other article of this chapter, there is
hereby imposed and there shall be paid a tax of [five] SIX percent upon
the receipts from every rental of a passenger car which is a retail sale
of such passenger car.
S 2. Paragraph 2 of subdivision (a) of section 1160 of the tax law, as
amended by chapter 166 of the laws of 1991, is amended to read as
follows:
(2) Except to the extent that a passenger car rental described in
paragraph one of this subdivision has already been or will be subject to
the tax imposed under such paragraph and except as otherwise exempted
under this article, there is hereby imposed on every person and there
shall be paid a use tax for the use within this state [on and after June
first, nineteen hundred ninety] of any passenger car rented by the user,
which is a purchase at retail of such passenger car, but not including
any lease of a passenger car to which subdivision (i) of section eleven
hundred eleven of this chapter applies. For purposes of this paragraph,
the tax shall be at the rate of [five] SIX percent of the consideration
given or contracted to be given for such property, or for the use of
such property, including any charges for shipping or delivery as
described in paragraph three of subdivision (b) of section eleven
hundred one of this chapter, but excluding any credit for tangible
personal property accepted in part payment and intended for resale.
S 3. This act shall take effect June 1, 2009, and shall apply to sales
made or uses occurring on or after such date in accordance with applica-
ble transitional provisions in sections 1106 and 1217 of the tax law.
S. 57--B 120 A. 157--B
PART S-1
Section 1. Section 957 of the general municipal law, as added by chap-
ter 686 of the laws of 1986, subdivisions (b) and (f) as amended and
subdivisions (c), (g), (i), (j), (k), and (l) as added by chapter 624 of
the laws of 1990, subdivision (d) as amended and subdivision (r) as
added by section 1 of part HH of chapter 59 of the laws of 2006, para-
graphs (iii), (iv), (v) and (vi) of subdivision (d) as added by section
5 of part A of chapter 63 of the laws of 2005, subdivision (e) as
amended and subdivisions (m), (n) and (o) as added by chapter 708 of the
laws of 1993, subdivision (h) as amended by chapter 39 of the laws of
2004, subdivision (p) as added by chapter 170 of the laws of 1994,
subdivision (q) as amended by chapter 161 of the laws of 2005, subdivi-
sions (s) and (t) as added by section 1 of part V-1 of chapter 109 of
the laws of 2006, and subdivisions (a), (e), (f), (k), and (m) as
further amended pursuant to section 15 of part GG of chapter 63 of the
laws of 2000, is amended to read as follows:
S 957. Definitions. As used in this article, the following words and
terms shall have the following meanings unless the context shall indi-
cate another or different meaning or intent:
(a) "Applicant" shall mean the county, city, town or village submit-
ting an application in the manner authorized by local law for desig-
nation of an area as an empire zone.
(b) "Commissioner" shall mean the commissioner of economic develop-
ment.
(c) "Minority-owned business enterprise" shall [mean a business enter-
prise, including a sole proprietorship, partnership or corporation, that
is:
(i) at least fifty-one percent owned by one or more minority group
members;
(ii) an enterprise in which such minority ownership is real, substan-
tial and continuing;
(iii) an enterprise in which such minority ownership has and exercises
the authority to control independently the day-to-day business decisions
of the enterprise; and
(iv) an enterprise authorized to do business in this state and inde-
pendently owned and operated] HAVE THE SAME MEANING AS PROVIDED IN
SECTION THREE HUNDRED TEN OF THE EXECUTIVE LAW.
(d) "Empire zone" shall mean an area within the state that has been
designated as an empire zone pursuant to this article and:
(i) all empire zones designated under paragraph (i) of subdivision (a)
and subdivision (d) of section nine hundred fifty-eight of this article
shall be referred to as "investment zones" and shall be wholly contained
within up to three distinct and separate contiguous areas; provided,
however, that empire zones designated prior to the enactment of this
paragraph shall identify up to three distinct and separate contiguous
areas, which shall equal up to their total allotted acreage at the time
of designation by January first, two thousand six. Provided however, the
existing zone must include as much designated acreage into the distinct
and separate contiguous areas as possible. Provided, however, notwith-
standing the provisions of paragraphs (i) and (ii) of subdivision (a) of
section nine hundred fifty-eight and subdivision (d) of section nine
hundred fifty-nine of this article a regionally significant project may
be located outside of the investment zone's distinct and separate
contiguous areas, provided such significant project is located within
the zone applicant's municipal boundaries. Provided further however, if
S. 57--B 121 A. 157--B
the investment zone is located in a county that does not have a develop-
ment zone such significant project may be located within the county's
boundaries. For the purpose of this article a "regionally significant
project" shall mean: a manufacturer projecting the creation of fifty or
more jobs; or an agri-business or high tech or biotech business making a
capital investment of ten million dollars and creating twenty or more
jobs; or a financial or insurance services or distribution center creat-
ing three hundred or more jobs; or a clean energy research and develop-
ment enterprise shall be eligible as a regionally significant project as
determined by the local zone administrative board and commissioner.
Other projects may be considered by the zone designation board;
(ii) all empire zones designated under subdivisions (b) and (c) of
section nine hundred fifty-eight of this article shall be referred to as
"development zones" and shall be wholly contained within up to six
distinct and separate contiguous areas. However, an empire zone located
in more than one county at the time of designation shall be wholly
contained in up to twelve distinct and separate contiguous areas.
Provided, however, that empire zones designated prior to the enactment
of this paragraph shall identify up to six distinct and separate contig-
uous areas, which shall equal up to their total allotted acreage at the
time of designation, by January first, two thousand six or in the case
of an empire zone located in more than one county, at the time of desig-
nation shall identify twelve distinct and separate contiguous areas.
Provided however, the existing zone must include as much designated
acreage into the distinct and separate contiguous areas as possible.
Provided, however, a regionally significant project may be located
outside of the development zone's distinct and separate contiguous
areas. For the purpose of this article a "regionally significant
project" shall mean: a manufacturer projecting the creation of fifty or
more jobs; or an agri-business or high tech or biotech business making a
capital investment of ten million dollars and creating twenty or more
jobs; or a financial or insurance services or distribution center creat-
ing three hundred or more jobs; or a clean energy research and develop-
ment enterprise shall be eligible as a regionally significant project as
determined by the local zone administrative board and the commissioner.
Other projects may be considered by the zone designation board;
(iii) provided, however, a zone may apply to add one additional
distinct and separate contiguous area, pursuant to paragraphs (i) and
(ii) of this subdivision, to such zone upon the demonstration of need,
provided, however, such additional distinct and separate contiguous area
shall not result in an empire zone that exceeds the maximum allotted
acreage;
(iv) a "development zone", pursuant to paragraph (ii) of this subdivi-
sion, shall apply, pursuant to subdivisions (a) and (d) of section nine
hundred fifty-eight of this article, to have up to three distinct and
separate contiguous areas defined as "investment zones", pursuant to
this subdivision;
(v) any certified businesses located outside of the empire zone's
distinct and separate contiguous areas, pursuant to this section, shall
be allowed the empire zone benefits until they are decertified; and
(vi) the boundaries that comprise the distinct and separate contiguous
areas in this subdivision must include at least the real property on one
side of a public thoroughfare when such street is used as a boundary. No
boundary shall be constructed as to connect one tax parcel to another
tax parcel by using a thoroughfare's center line, sidewalk or other
S. 57--B 122 A. 157--B
similar means of connecting a non-contiguous area to the zone's distinct
and separate contiguous areas.
(e) "Local empire zone administrative board" shall mean the entity
designated by the applicant that is responsible for RECOMMENDING BUSI-
NESS ENTERPRISES FOR CERTIFICATION PURSUANT TO PARAGRAPH (III) OF SUBDI-
VISION (A) OF SECTION NINE HUNDRED FIFTY-NINE OF THIS ARTICLE AND FOR
monitoring, evaluating and coordinating all empire zone benefits on
behalf of the applicant. Such entity shall consist of at least six
members, [none of whom shall be the local empire zone certification
officer,] and shall be representative of local businesses, organized
labor, community organizations, financial institutions, local educa-
tional institutions and residents of the empire zone.
(f) ["Local empire zone certification officer" shall mean the official
designated by the applicant who is responsible for jointly certifying
and decertifying together with the commissioner and the commissioner of
labor those business enterprises eligible to receive benefits pursuant
to this article.
(g)] "Women-owned business enterprise" shall [mean a business enter-
prise, including a sole proprietorship, partnership or corporation, that
is:
(i) at least fifty-one percent owned by one or more United States
citizens or permanent resident aliens who are women;
(ii) an enterprise in which the ownership interest of such women is
real, substantial and continuing;
(iii) an enterprise in which such women ownership has and exercises
the authority to control independently the day-to-day business decisions
of the enterprise; and
(iv) an enterprise authorized to do business in this state and inde-
pendently owned and operated] HAVE THE SAME MEANING AS PROVIDED IN
SECTION THREE HUNDRED TEN OF THE EXECUTIVE LAW.
[(h)] (G) "Locally owned business enterprise" shall mean (i) a busi-
ness firm in which the total ownership interest held by individuals who
are full time bona fide residents of such zone is more than eighty
percent, whose business activities are conducted in a manner whereby at
least fifty percent of the assets of such firm are located and utilized
in such zone, and at least forty percent of such firm's employees are
principally employed in such zone; or (ii) an agricultural cooperative
established pursuant to section one hundred eleven of the cooperative
corporations law; provided however, for business firms located within
zones designated in a city such individuals shall reside within a commu-
nity planning board or within traditional neighborhood boundaries and
provided further however for business firms located within zones outside
of a city such individuals may reside in the county in which the zone is
designated.
[(i)] (H) "Chief executive" shall mean (i) a county executive or
manager of a county; (ii) in a county not having a county executive or
manager, the chairperson or other presiding officer of the county legis-
lative body; (iii) a mayor of a city or village, except where a city or
village has a manager, it shall mean such a manager; or (iv) a supervi-
sor of a town, except where a town has a manager, it shall mean such
manager.
[(j)] (I) "Minority group member" shall [mean a United States citizen
or permanent resident alien who is and can demonstrate membership in one
of the following groups:
(i) Black persons having origins in any of the Black African racial
groups;
S. 57--B 123 A. 157--B
(ii) Hispanic persons of Mexican, Puerto Rican, Dominican, Cuban,
Central or South American of either Indian or Hispanic origin, regard-
less of race;
(iii) Native American or Alaskan native persons having origins in any
of the original peoples of North America; and
(iv) Asian and Pacific Islander persons having origins in any of the
Far East countries, South East Asia, the Indian subcontinent or the
Pacific Islands] HAVE THE SAME MEANING AS PROVIDED IN SECTION THREE
HUNDRED TEN OF THE EXECUTIVE LAW.
[(k)] (J) "Targeted employee" shall mean a New York resident who
receives empire zone wages pursuant to subdivision nineteen of section
two hundred ten of the tax law and who is (i) an eligible individual
under the provision of the targeted jobs tax credit (section fifty-one
of the internal revenue code), (ii) eligible for benefits under the
provisions of the job training partnership act (P.L. 97-300, as
amended), (iii) a recipient of public assistance benefits, or (iv) an
individual whose income is below the most recently established poverty
rate promulgated by the United States department of commerce, or a
member of a family whose family income is below the most recently estab-
lished poverty rate promulgated by the appropriate federal agency.
An individual who satisfies the criteria set forth in clause (i), (ii)
or (iv) of this subdivision at the time of initial employment in the job
with respect to which the credit is claimed, or who satisfies the crite-
rion set forth in clause (iii) of this subdivision at such time or at
any time within the previous two years, shall be a targeted employee so
long as such individual continues to receive empire zone wages.
[(l)] (K) "Single enterprise" means two or more related business
enterprises characterized by an absence of arms length relationships
found among enterprises that are not integrated. Factors to be consid-
ered, among other things, in determining the existence of a single
enterprise are interrelation of operations, common management, central-
ized control of labor relations, common ownership and common financial
control.
[(m)] (L) "Zone administrative entity" shall mean a community-based
local development corporation or entity contracting with the local
empire zone board pursuant to paragraph (viii) of subdivision [(b)] A of
section nine hundred sixty-three of this article or the municipality in
which the zone is located in those instances where the municipality
actively participates in the local administration of the zone program.
[(n)] (M) "Human resource development" shall mean job preparation and
placement, skills training and education for zone residents and employ-
ees of zone businesses, child and family care services and facilities,
and activities to improve the health benefits and other benefits
provided by zone businesses to their employees.
[(o)] (N) "Community development projects" shall mean projects spon-
sored by not-for-profit organizations which have been approved by the
zone board, which will advance the zone development plan. For purposes
described in subdivision twenty of section two hundred ten, subsection
(l) of section six hundred six, subsection (d) of section fourteen
hundred fifty-six and subdivision (h) of section fifteen hundred eleven
of the tax law, such projects shall be limited to child care programs
serving zone residents and businesses; community development projects in
direct support of economic development and business revitalization
activities, such as commercial revitalization projects; and business
development activities of local development corporations.
S. 57--B 124 A. 157--B
[(p)] (O) "Zone equivalent area" shall mean an area designated as such
pursuant to FORMER subdivision (bb) of section nine hundred fifty-nine
of this article.
[(q)] (P) "Cost benefit analysis" shall mean, FOR PURPOSES OF PARA-
GRAPH (III) OF SUBDIVISION (A) OF SECTION NINE HUNDRED FIFTY-NINE OF
THIS ARTICLE, a method of determining whether to certify a business
[pursuant to section nine hundred sixty-three of this article] ENTER-
PRISE based on the [business'] BUSINESS ENTERPRISE'S projected job
creation and/or investment in the zone versus the TOTAL amount of empire
zone TAX benefits the business ENTERPRISE will potentially be allowed to
[claim pursuant to sections fourteen, fifteen, and sixteen of the tax
law.] USE AND HAVE REFUNDED TO IT AND SHALL BE A RATIO OF AT LEAST
10AGING FOR MANUFACTURING ENTERPRISES AND 20AGING FOR ALL OTHER BUSINESS
ENTERPRISES, THE NUMERATOR OF WHICH IS THE SUM OF (I) THE ESTIMATED
VALUE OF ALL WAGES AND BENEFITS PAID FOR THE FIRST THREE YEARS OF
CERTIFICATION TO ALL EXISTING AND PROJECTED EMPLOYEES OF THE BUSINESS
ENTERPRISE IN THE ZONE AND (II) THE ESTIMATED VALUE OF CAPITAL INVEST-
MENTS FOR THE FIRST THREE YEARS OF CERTIFICATION IN THE ZONE, AND THE
DENOMINATOR OF WHICH IS THE ESTIMATED AMOUNT OF TOTAL EMPIRE ZONE TAX
BENEFITS THAT MAY BE USED AND MAY BE REFUNDED FOR THE FIRST THREE YEARS
OF CERTIFICATION.
[Such cost benefit analysis shall include, but not be limited to, an
estimate for the first five years commencing in the year in which the
business is certified, of: (i) the amount of all the state tax credits
under the empire zones program which may be claimed by the entity or its
members, partners, or shareholders each year, (ii) the value of the
sales tax exemption on an annual basis, (iii) the estimated number of
jobs created, (iv) the total annual remuneration and benefits for the
employees within the zone location, (v) the cost of construction, reno-
vation or expansion of the business's location within the zone, and (vi)
the investment being made with respect to tangible personal property or
other tangible property which is depreciable pursuant to section 179(d)
of the Internal Revenue Code. Non-quantifiable factors may include a
business enterprise's positive impact on an area that has high commer-
cial vacancy rates, and/or is characterized by blight and disinvestment
or the business enterprise is part of a strategic industry cluster or
supply chain; or is anticipated to access zone capital credits.]
(r) "Clean energy research and development enterprise" shall mean any
electric generating facility that used pulverized coal technology,
circulating fluidized bed technology or integrated gasification combined
cycle technology and that is capable of capturing carbon dioxide for
sequestration or capable of being retrofitted to capture carbon dioxide
for sequestration.
(s) "Qualified investment project" shall mean a project (i) located
within an empire zone, (ii) at which five hundred or more jobs will be
created, provided such jobs are new to the state and are in addition to
any other jobs previously created by the owner of such project in the
state, and (iii) which will consist of tangible personal property and
other tangible property, including buildings and structural components
of buildings, described in subparagraphs (i), (ii), (iii), (iv) and
clause (A) or (C) of subparagraph (v) of paragraph (b) of subdivision
twelve-B of section two hundred ten of the tax law, the basis of which
for federal income tax purposes will equal or exceed seven hundred fifty
million dollars. Provided however, the owner of such project does not
employ more than two hundred persons in the state at the time such
project is commenced.
S. 57--B 125 A. 157--B
(t) "Significant capital investment project" shall mean a project (i)
located within an empire zone, (ii) which will be either a newly
constructed facility or a newly constructed addition to or expansion of
a qualified investment project, consisting of tangible personal property
and other tangible property, including buildings and structural compo-
nents of buildings, described in subparagraphs (i), (ii), (iii), (iv)
and clause (A) or (C) of subparagraph (v) of paragraph (b) of subdivi-
sion twelve-B of section two hundred ten of the tax law, the basis of
which for federal income tax purposes will equal or exceed seven hundred
fifty million dollars, (iii) which is constructed after the basis for
federal income tax purposes of the property comprising such qualified
investment project equals or exceeds seven hundred fifty million
dollars, and (iv) at which five hundred or more jobs will be created,
provided such jobs are new to the state and are in addition to any other
jobs previously created by the owner of such project in the state.
S 2. Intentionally omitted.
S 3. Section 959 of the general municipal law, as amended by section 5
of part A of chapter 63 of the laws of 2005 and subdivision (w) as
amended by section 2 of part CCC1 of chapter 57 of the laws of 2008, is
amended to read as follows:
S 959. Responsibilities of the commissioner. The commissioner shall:
(a) After consultation with the director of the budget, the commis-
sioner of labor, and the commissioner of taxation and finance, promul-
gate regulations, WHICH, NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY
IN THE STATE ADMINISTRATIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMERGEN-
CY BASIS, governing (i) criteria of eligibility for empire zone desig-
nation, provided, however, that such criteria be approved by the direc-
tor of the budget; (ii) the application process; (iii) the [joint]
certification by the commissioner[, the commissioner of labor, and, in
the case of an empire zone, the local empire zone certification offi-
cer,] as to the eligibility of business enterprises for benefits
referred to in section nine hundred sixty-six of this article, WHICH
SHALL BE GOVERNED BY CRITERIA INCLUDING, BUT NOT LIMITED TO: (1) WHETHER
THE BUSINESS ENTERPRISE, IF CERTIFIED, IS REASONABLY LIKELY TO CREATE
NEW EMPLOYMENT OR PREVENT A LOSS OF EMPLOYMENT IN THE ZONE, (2) WHETHER
SUCH NEW EMPLOYMENT OPPORTUNITIES WILL BE FOR INDIVIDUALS WHO WILL
PERFORM A SUBSTANTIAL PART OF THEIR EMPLOYMENT ACTIVITIES IN THE ZONE,
(3) WHETHER CERTIFICATION WILL HAVE THE UNDESIRED EFFECT OF CAUSING
INDIVIDUALS TO TRANSFER FROM EXISTING EMPLOYMENT WITH ANOTHER BUSINESS
ENTERPRISE TO SIMILAR EMPLOYMENT WITH THE BUSINESS ENTERPRISE SO CERTI-
FIED, AND TRANSFERRING EXISTING EMPLOYMENT FROM ONE OR MORE OTHER MUNI-
CIPALITIES, TOWNS OR VILLAGES IN THE STATE, OR TRANSFERRING EXISTING
EMPLOYMENT FROM ONE OR MORE OTHER BUSINESSES IN THE ZONE, (4) WHETHER
SUCH ENTERPRISE IS LIKELY TO ENHANCE THE ECONOMIC CLIMATE OF THE ZONE,
(5) WHETHER THE COMMISSIONER OF LABOR ESTABLISHES THAT SUCH BUSINESS
ENTERPRISE, DURING THE THREE YEARS PRECEDING THE SUBMISSION OF AN APPLI-
CATION FOR CERTIFICATION, HAS ENGAGED IN A SUBSTANTIAL VIOLATION OR A
PATTERN OF VIOLATIONS OF LAWS REGULATING UNEMPLOYMENT INSURANCE, WORKERS
COMPENSATION, PUBLIC WORK, CHILD LABOR, EMPLOYMENT OF MINORITIES AND
WOMEN, SAFETY AND HEALTH, OR OTHER LAWS FOR THE PROTECTION OF WORKERS AS
DETERMINED BY FINAL JUDGMENT OF A JUDICIAL OR ADMINISTRATIVE PROCEEDING;
(6) WHETHER SUCH BUSINESS MEETS THE REQUIREMENTS OF THE COST BENEFIT
ANALYSIS AS ESTABLISHED IN PARAGRAPH (P) OF SECTION NINE HUNDRED FIFTY-
SEVEN OF THIS ARTICLE, AND (7) IF THE COMMISSIONER OF LABOR ESTABLISHES
THAT THE BUSINESS ENTERPRISE HAS BEEN FOUND IN A CRIMINAL PROCEEDING TO
HAVE VIOLATED, IN THE PREVIOUS THREE YEARS, ANY OF THE LAWS REFERRED TO
S. 57--B 126 A. 157--B
IN SUBPARAGRAPH FIVE OF THIS PARAGRAPH OR REGULATIONS PROMULGATED PURSU-
ANT TO SUCH LAWS, THE CONDITIONS OF ANY PERMIT ISSUED THEREUNDER, OR
SIMILAR STATUTE, REGULATION, ORDER OR PERMIT CONDITION OF ANY OTHER
GOVERNMENT AGENCY, FOREIGN OR DOMESTIC, SUCH BUSINESS SHALL NOT BE
CERTIFIED; provided, however, that a business enterprise that has shift-
ed its operations, or some portions thereof, from an area within New
York state not designated as an empire zone or zone equivalent area to
an area so designated shall not be certified to receive such benefits
except where such shift is entirely within a municipality and has been
approved by the local governing body of such municipality or in situ-
ations where it has been established, after a public hearing, that
extraordinary circumstances exist which warrant the relocation of a
business, in whole or part, into an empire zone or a zone equivalent
area from another municipality and the municipality from which the busi-
ness is relocating approves of such relocation; or where such shift in
operations is from a business incubator facility operated by a munici-
pality or by a public or private not-for-profit entity which provides
space and business support services to newly established firms; and (iv)
the [joint] decertification BY THE COMMISSIONER, UPON THE RECOMMENDATION
OF THE COMMISSIONER OF LABOR, SO AS TO REVOKE THE CERTIFICATION OF BUSI-
NESS ENTERPRISES FOR BENEFITS REFERRED TO IN SECTION NINE HUNDRED
SIXTY-SIX OF THIS ARTICLE WITH RESPECT TO AN EMPIRE ZONE OR ZONE EQUIV-
ALENT AREA UPON A FINDING THAT THE BUSINESS ENTERPRISE HAS COMMITTED
SUBSTANTIAL VIOLATIONS OF LAWS FOR THE PROTECTION OF WORKERS INCLUDING
ALL FEDERAL, STATE AND LOCAL LABOR LAWS, RULES OR REGULATIONS; AND (V)
THE DECERTIFICATION by the commissioner[, the commissioner of labor,
and, in the case of an empire zone, the local empire zone certification
officer] so as to revoke the certification of business enterprises for
benefits referred to in section nine hundred sixty-six of this article
with respect to an empire zone or zone equivalent area upon a finding
[that] OF ANY ONE OF THE FOLLOWING: (1) the business enterprise made
material misrepresentations of fact on its application for certification
OR IN ANY OF ITS BUSINESS ANNUAL REPORTS, or the business enterprise
failed to disclose facts in its application for certification that would
constitute grounds for not issuing a certification; (2) the business
enterprise has failed to construct, expand, rehabilitate or operate OR
INVEST IN its facility substantially in accordance with the representa-
tions contained in its application for certification; (3) the business
enterprise has failed to create new employment or prevent a loss of
employment in the empire zone or zone equivalent area [provided, howev-
er, that such failure was not due to economic circumstances or condi-
tions which such business could not anticipate or which were beyond its
control]; (4) where applicable, the business enterprise has failed to
submit an annual report after it has applied for zone [incentives] TAX
BENEFITS or program assistance based on new hires or investments or
failed to submit other information [to the local empire zone certif-
ication officer] when due; [or] (5) the business enterprise [has commit-
ted substantial violations of laws for the protection of workers includ-
ing all federal, state and local labor laws, rules or regulations;], IF
FIRST CERTIFIED PURSUANT TO THIS ARTICLE PRIOR TO THE FIRST DAY OF
AUGUST, TWO THOUSAND TWO, CAUSED INDIVIDUALS TO TRANSFER FROM EXISTING
EMPLOYMENT WITH ANOTHER BUSINESS ENTERPRISE WITH SIMILAR OWNERSHIP AND
LOCATED IN NEW YORK STATE TO SIMILAR EMPLOYMENT WITH THE CERTIFIED BUSI-
NESS ENTERPRISE OR IF THE ENTERPRISE ACQUIRED, PURCHASED, LEASED, OR HAD
TRANSFERRED TO IT REAL PROPERTY PREVIOUSLY OWNED BY AN ENTITY WITH SIMI-
LAR OWNERSHIP, REGARDLESS OF FORM OF INCORPORATION OR ORGANIZATION; (6)
S. 57--B 127 A. 157--B
THE BUSINESS ENTERPRISE HAS FAILED TO PROVIDE ECONOMIC RETURNS TO THE
STATE IN THE FORM OF TOTAL REMUNERATION TO ITS EMPLOYEES (I.E. WAGES AND
BENEFITS) AND INVESTMENTS IN ITS FACILITY GREATER IN VALUE TO THE TAX
BENEFITS THE BUSINESS ENTERPRISE USED AND HAD REFUNDED TO IT; OR (7) THE
BUSINESS ENTERPRISE HAS CHANGED OWNERSHIP OR MOVED ITS OPERATIONS OUT OF
THE EMPIRE ZONE; said regulations shall provide that whenever any busi-
ness enterprise is decertified with respect to an empire zone: (A) the
date determined to be the earliest event constituting grounds for revok-
ing certification shall be the effective date of decertification; (B)
its certified single enterprise, if any, may also be decertified; and
(C) the commissioner shall notify the commissioner of taxation and
finance that such decertification has occurred, and such notification
should include the effective date of such decertification and the zone
or zone equivalent area to which such decertification applies;
(b) Receive and review applications for designation of areas as empire
zones;
(c) Analyze and make recommendations to the empire zones designation
board for designation of areas as empire zones, provided, however, that
all such areas recommended by the commissioner shall meet the require-
ments of this article;
(d) Review new applications to replace any previously designated
empire zone the designation of which has been terminated or withdrawn[;
(e) File] AND FILE notice of the designation or redesignation of an
empire zone or of the revision or termination of such designation with
the applicant, the department of taxation and finance, the secretary of
state, with the county, city, town or village clerk of each county,
city, town, or village, respectively, in which the empire zone is
located, with the school district governing body in which the empire
zone is located, with the state board of real property services and with
other state and local entities; provided, however, that such notice
shall specify the date such action was taken and shall contain a
description sufficient to identify the empire zone, including the names
of the abutting streets, roads, highways, bodies of water, or other
identifying physical features;
[(f)] (E) Request, and shall receive from any department, division,
board, bureau, commission, agency or public authority of the state such
assistance as may be necessary to establish a procedure whereby applica-
tions submitted by business entities, community-based organizations,
not-for-profit organizations, human service agencies, labor unions and
municipal agencies located within an empire zone requesting financial
and other assistance provided by state programs, including, but not
limited to, capital development, human resource development, business
assistance, job training and job placement shall, consistent with feder-
al law, be given priority over applications submitted by entities not
located in empire zones;
[(g)] (F) Establish a priority for the allocation of authority to
issue private activity bonds for the benefit of municipalities and busi-
ness enterprises located or to be located within empire zones;
[(h)] (G) Coordinate, with the local empire zone administrative board
and state agencies and authorities, the provision of business develop-
ment programs and services for each empire zone in order to stimulate
the creation and development of new small businesses, including new
small minority-owned and women-owned business enterprises, and may
request and shall receive from any department, division, board, bureau,
commission, agency or public authority of the state such assistance as
may be necessary;
S. 57--B 128 A. 157--B
[(i)] (H) Coordinate with the comptroller and the commissioner of
taxation and finance a linked deposit program. The comptroller and the
commissioner of taxation and finance are hereby authorized and empowered
to enter into agreements with financial institutions located in or serv-
ing the empire zones, to provide for the deposit of funds administered
jointly by them in such institutions, at reduced rates of return to the
state, in return for commitments by such institutions to businesses of
loans of comparable amounts, at reduced interest rates, for business
development projects in the zones that will create or preserve jobs;
[(j)] (I) Assist each local empire zone board in preparing a small
business assistance plan as required by section nine hundred sixty-three
of this article and coordinate with the local empire zone administrative
board and state agencies and authorities the development of small busi-
ness procurement, export and marketing programs for businesses within
the empire zones;
[(k)] (J) Promulgate regulations, in consultation with the commission-
er of labor, for program evaluation and coordinate implementation of an
evaluation system, which is capable of compiling and analyzing accurate
and consistent information necessary for an assessment of whether statu-
tory objectives and criteria are being met;
[(l)] (K) Review performance objectives and progress in meeting objec-
tives with zone boards and zone administrative entities as part of the
annual administrative contract process;
[(m)] (L) Assist zone boards and zone administrative entities to
effect and implement job training and social services agreements and
programs provided for in paragraphs (v), (vi) and (vii) of subdivision
[(b)] (A) of section nine hundred sixty-three of this article and
request and receive from any agency or authority of the state such
assistance as may be necessary to improve the delivery and coordination
of human resource development programs to the zones;
[(n)] (M) Assist zones in increasing their child care capacity and in
planning special care activities, including the provision of technical
assistance by the department in planning for the provision of child care
services in the zones;
[(o)] (N) Coordinate with the department of labor, the state education
department, the job training partnership council and agencies of the
state the inclusion in annual and biennial plans of such entities strat-
egies for increasing and improving human resource development services
on a priority basis, consistent with federal statutory and regulatory
requirements, to residents of the zones and employees of zone busi-
nesses, including, but not limited to, the governor's plan for coordi-
nation and special services of the job training partnership council, the
jobs plan and Wagner-Peyser annual plan for services of the department
of labor, and the career education state plan of the state education
department;
[(p)] (O) Arrange with the job training partnership council the
provision of the workforce investment act funds for use within the zones
with the cooperation of the service delivery areas in the governor's
plan for coordination and special services;
[(q)] (P) Subject to the availability of funds, arrange for the allo-
cation and reservation of funds from the infrastructure improvement
programs of state agencies and authorities to assist the zones to make
public improvements necessary for community, commercial, industrial and
tourism development projects in support of zone revitalization;
[(r)] (Q) Systematically enlist other state agencies and authorities
to participate in zone programs and projects and in cooperative planning
S. 57--B 129 A. 157--B
of interagency zone activities in support of zone revitalization
efforts;
[(s)] (R) Recommend for economic development loan and grant programs
of the department of economic development, urban development corpo-
ration, job development authority, and science and technology foundation
special terms and conditions for viable zone projects and programs;
[(t)] (S) Award preference to be given to applications submitted by or
on behalf of zones for entrepreneurial assistance programs under article
nine of the omnibus economic development act of nineteen hundred eight-
y-seven to support the creation of new entrepreneurial development and
entrepreneurial support centers;
[(u)] (T) Coordinate with the urban development corporation the
creation of a special category of assistance for zones within the
regional economic development partnership program, which will make
available economic development assistance grants for zone programs and
activities, including, but not limited to, planning, service coordi-
nation, and local institutional capacity building for human resource
development necessary for economic revitalization; planning and develop-
ment of small business incubators; job placement and preparedness
programs for zones residents; education and training programs for zone
businesses; child care programs and projects supportive of business
development; technical assistance for minority and women-owned business
development; training for zone officials; business and tourism develop-
ment and marketing programs; and other innovative programs and activ-
ities in support of economic and community development within the zones;
[and]
[(v)] (U) Assist in the development of a plan, in coordination with
the health and insurance departments, to assist zones in obtaining
affordable employee health insurance for small business enterprises
located within the zone[.];
[(w)] (V) Approve applications for qualification of a business enter-
prise as the owner of a qualified investment project or as the owner of
a significant capital investment project, as defined in subdivisions (s)
and (t), respectively, of section nine hundred fifty-seven of this arti-
cle. As a condition for approval of such application, the commissioner
is authorized to specify certain requirements to be satisfied as a
condition for approval of such application as the commissioner deems
necessary to ensure that the project will make a substantial contrib-
ution to the economic development of this state. An application for
qualification of a business enterprise as the owner of a qualified
investment must be submitted by December thirty-first, two thousand
nine. An application for qualification of a business as the owner of a
significant capital investment project as defined in subdivision (t) of
section nine hundred fifty-seven of this article, which application is
submitted by an entity previously qualified by the commissioner as the
owner of a qualified investment project or an entity which is a related
person, as that term is defined in section 465(b)(3)(c) of the internal
revenue code, to an entity previously qualified by the commissioner as
the owner of a qualified investment project, must be submitted by June
thirtieth, two thousand eleven. No applications submitted after these
dates may be approved; AND
(W) CONDUCT A REVIEW DURING CALENDAR YEAR TWO THOUSAND NINE OF ALL
BUSINESS ENTERPRISES TO DETERMINE WHETHER THE BUSINESS ENTERPRISES
SHOULD BE DECERTIFIED PURSUANT TO SUBPARAGRAPHS FIVE AND SIX OF PARA-
GRAPH (V) OF SUBDIVISION (A) OF THIS SECTION AND THE REGULATIONS PROMUL-
GATED UNDER THIS ARTICLE. AFTER SUCH REVIEW, THE COMMISSIONER SHALL
S. 57--B 130 A. 157--B
ISSUE AN EMPIRE ZONE RETENTION CERTIFICATE TO EACH FIRM THAT THE COMMIS-
SIONER DETERMINES IS NOT SUBJECT TO DECERTIFICATION UNDER SUBPARAGRAPHS
FIVE AND SIX OF PARAGRAPH (V) OF SUBDIVISION (A) OF THIS SECTION. THE
DECERTIFICATION REFERRED TO IN SUBPARAGRAPH SIX OF PARAGRAPH (V) OF
SUBDIVISION (A) OF THIS SECTION SHALL BE BASED UPON AN ANALYSIS OF DATA
CONTAINED IN AT LEAST THREE BUSINESS ANNUAL REPORTS FILED BY THE BUSI-
NESS ENTERPRISE. IF ANY BUSINESS ENTERPRISE FAILS THE ANALYSIS
DESCRIBED IN THE IMMEDIATELY PRECEDING SENTENCE, OR IF THE COMMISSIONER
MAKES THE FINDING DESCRIBED IN SUBPARAGRAPH FIVE OF PARAGRAPH (V) OF
SUBDIVISION (A) OF THIS SECTION, THE COMMISSIONER SHALL REVOKE THE
CERTIFICATION OF SUCH BUSINESS ENTERPRISE PURSUANT TO PARAGRAPH (IV) OF
SUBDIVISION (A) OF THIS SECTION AND AS SPECIFIED HEREIN; PROVIDED,
HOWEVER, THE COMMISSIONER MAY CONSIDER, AFTER CONSULTATION WITH THE
DIRECTOR OF THE BUDGET, AND IN HIS OR HER SOLE DISCRETION, OTHER ECONOM-
IC, SOCIAL AND ENVIRONMENTAL FACTORS WHEN EVALUATING THE COSTS AND BENE-
FITS OF A PROJECT TO THE STATE AND WHETHER CONTINUED CERTIFICATION IS
WARRANTED BASED ON SUCH FACTORS. THE COMMISSIONER SHALL PROVIDE WRITTEN
NOTIFICATION TO SUCH BUSINESS ENTERPRISE OF HIS OR HER DETERMINATION TO
REVOKE THE CERTIFICATION, INCLUDING THE REASONS THEREFOR. SUCH NOTIFICA-
TION SHALL STATE THAT THE BUSINESS ENTERPRISE MAY APPEAL THE DETERMI-
NATION BY SENDING A WRITTEN NOTICE TO THE EMPIRE ZONE DESIGNATION BOARD
OF SUCH APPEAL NO LATER THAN FIFTEEN BUSINESS DAYS FROM THE DATE OF THE
COMMISSIONER'S REVOCATION NOTIFICATION. PROVIDED THAT THE BUSINESS
ENTERPRISE APPEALS THE COMMISSIONER'S DETERMINATION WITHIN FIFTEEN BUSI-
NESS DAYS OF THE COMMISSIONER'S REVOCATION NOTIFICATION, THE BUSINESS
ENTERPRISE MAY PRESENT A WRITTEN SUBMISSION TO THE EMPIRE ZONE DESIG-
NATION BOARD NO LATER THAN SIXTY DAYS FOLLOWING THE DATE THE COMMISSION-
ER'S REVOCATION NOTIFICATION WAS SENT TO THE BUSINESS ENTERPRISE
EXPLAINING WHY ITS CERTIFICATION SHOULD BE CONTINUED. THE EMPIRE ZONE
DESIGNATION BOARD SHALL CONSIDER THE EXPLANATION PROVIDED BY THE BUSI-
NESS ENTERPRISE, BUT SHALL ONLY REVERSE THE DETERMINATION TO REVOKE THE
BUSINESS ENTERPRISE'S CERTIFICATION IF THE EMPIRE ZONE DESIGNATION BOARD
UNANIMOUSLY FINDS THAT THERE WAS INSUFFICIENT EVIDENCE PRESENTED DEMON-
STRATING THAT THE COMMISSIONER'S FINDING, WITH RESPECT TO SUBPARAGRAPH
SIX OF PARAGRAPH (V) OF SUBDIVISION (A) OF THIS SECTION, WAS IN ERROR,
OR THAT, WITH RESPECT TO SUBPARAGRAPH FIVE OF PARAGRAPH (V) OF SUBDIVI-
SION (A) OF THIS SECTION, ANY EXTRAORDINARY CIRCUMSTANCES OCCURRED WHICH
WOULD JUSTIFY THE CONTINUED CERTIFICATION OF THE BUSINESS ENTERPRISE.
S 4. Subdivision (b) of section 959-b of the general municipal law, as
added by section 17 of part W1 of chapter 109 of the laws of 2006, is
amended to read as follows:
(b) The commissioner of economic development shall serve as the sole
certification officer for businesses seeking certification as a clean
energy enterprise. The commissioner of economic development, after
consultation with the executive director of the New York state energy
research and development authority, shall promulgate regulations govern-
ing (i) criteria of eligibility for designation of a clean energy enter-
prise, (ii) the application process, and (iii) the certification by the
commissioner of economic development as to the eligibility of business
enterprises for benefits referred to in section nine hundred sixty-six
of this article. A business so certified shall be deemed to be eligible
for such benefits as if such business were located in an investment zone
as defined in paragraph (i) of subdivision (d) of section nine hundred
fifty-seven of this article. No such certification shall be made after
[December thirty-first] JUNE THIRTIETH, two thousand [eleven] TEN.
S. 57--B 131 A. 157--B
S 5. Subdivisions (a-1) and (a-2) and the opening paragraph of para-
graph (ii) of subdivision (e) of section 960 of the general municipal
law, subdivision (a-1) as amended by section 2 of part HH of chapter 59
of the laws of 2006, subdivision (a-2) as added and the opening para-
graph of paragraph (ii) of subdivision (e) as amended by section 5 of
part A of chapter 63 of the laws of 2005, are amended to read as
follows:
(a-1) The empire zones designation board may consider designating
empire zone acreage for the following categories of regionally signif-
icant projects as set forth in section nine hundred fifty-seven of this
article: agri-business or high tech or biotech business making a capi-
tal investment of ten million dollars and creating twenty or more jobs;
or a financial or insurance services or distribution center creating
three hundred or more jobs; or a clean energy research and development
enterprise. Such consideration shall be upon application SUBMITTED by
the [local zone administrative board and/or the] commissioner. Such
application shall be made after a public hearing in accordance with
section nine hundred sixty-nine of this article and in accordance with
findings which shall consider factors including but not limited to: the
creation and retention of a regionally significant number of skilled or
otherwise quality jobs; substantial capital investment; or the export of
a substantial amount of goods or services beyond the immediate region;
and further findings as to why such project cannot be accommodated with-
in the distinct and separate contiguous areas pursuant to section nine
hundred fifty-seven of this article. Such findings shall be published
once a week for four successive weeks, in two newspapers of the county
of which the project is to be located or if no newspaper is published
therein, in the newspaper nearest thereto. Proof of such publication
shall be submitted to the board. The board shall not act on such project
or projects until thirty days of the final publication of such findings.
(a-2) The empire zones designation board may consider designating
empire zone acreage for other regionally significant projects in accord-
ance with section nine hundred fifty-seven of this article, upon appli-
cation SUBMITTED by the [local zone administrative board and/or the]
commissioner. Such application shall be made after a public hearing in
accordance with section nine hundred sixty-nine of this article and in
accordance with findings which shall consider factors including, but not
limited to: the creation and retention of a regionally significant
number of skilled or otherwise quality jobs; substantial capital invest-
ment; or the export of a substantial amount of goods or services beyond
the immediate region; and further findings as to why such project cannot
be accommodated within the distinct and separate contiguous areas pursu-
ant to section nine hundred fifty-seven of this article. Such findings
shall be published once a week for four successive weeks, in two newspa-
pers of the county of which the project is to be located or if no news-
paper is published therein, in the newspaper nearest thereto. Proof of
such publication shall be submitted to the board. The board shall not
act on such project or projects until thirty days of the final publica-
tion of such findings. Provided, however, that the commissioner shall
promulgate rules and regulations for the implementation of this subdivi-
sion after approval by the empire zones designation board. Provided
further, approval of such projects and related regulations requires an
affirmative vote by at least five voting members of such board.
[An entity independent of the department shall conduct and submit to
the governor and the legislature by no later than December thirty-first,
two thousand nine, a comprehensive evaluation of the performance of the
S. 57--B 132 A. 157--B
zones program and of individual zones on meeting criteria established
pursuant to this section. The criteria by which the empire zones program
and individual zones are to be evaluated shall include, but not be
limited to, the following:]
S 6. Subdivision (cc) of section 962 of the general municipal law is
REPEALED.
S 7. Subdivision (a) of section 963 of the general municipal law is
REPEALED and subdivisions (b), (c), (d), (e), (f) and (g) are relettered
subdivisions (a), (b), (c), (d), (e) and (f).
S 8. Subdivision (f) of section 963 of the general municipal law, as
added by section 5 of part A of chapter 63 of the laws of 2005, and as
relettered by section seven of this act, is amended to read as follows:
(f) All certified businesses are required to provide a certified annu-
al report to the local zone administration board which report shall
include but not be limited to the following:
(i) Business certification information to include: organization name,
organization address in the zone, contact information, federal employ-
ment ID number, New York state unemployment insurance number, state of
formation or incorporation, verification that the business is authorized
to conduct business in the state of New York;
(ii) Employment numbers calculated in the same manner in which the
employment number is required to be calculated by section fourteen of
the tax law including: total existing full-time equivalent jobs in the
zone as of the date of certification within that zone, total existing
jobs in the zone for the year for which the report is being provided,
total remuneration paid to employees in the zone each quarter of the
reported year, total number of employees in all zones, total annual
remuneration in all zones, total annual remuneration paid in New York
state for the reported year, total employment number in New York state
for the reported year as shown on each business' NYS-45 wage reporting
form filed with the department of labor;
(iii) Capital investment to include: total investment made in the zone
for the reported year[, with such investment being made with respect to
tangible personal property or other tangible property which is deprecia-
ble pursuant to section one hundred seventy-nine (d) of the internal
revenue code];
(iv) Tax [credits claimed] BENEFITS USED AND REFUNDED: provide an
estimation of the amount of the [following credits claimed] TAX BENEFITS
USED AND REFUNDED for the reported year by the certified business, or by
the taxpayers within the certified business including its shareholders,
members, partners or the owner of a sole proprietorship[:] INCLUDING THE
wage tax credits, investment tax credits, employment incentive tax cred-
its, real property tax credit, [and] tax reduction credit; and
(v) [Other benefits: estimated value to the certified business of the]
THE sales tax [exemption] CREDITS AND REFUNDS for the reported year.
S 9. Subdivision (a) of section 964 of the general municipal law, as
amended by chapter 708 of the laws of 1993 and as further amended pursu-
ant to section 15 of part GG of chapter 63 of the laws of 2000, is
amended to read as follows:
(a) No more than three empire zone capital corporations may be estab-
lished in each zone for the purpose of raising funds through private and
public grants, donations or investments, to be used in making invest-
ments in, and loans to, business firms certified pursuant to subdivision
(a) of section nine hundred [sixty-three] FIFTY-NINE of this article for
the purpose of encouraging the establishment or expansion of businesses
and the provision of additional job opportunities within such area. A
S. 57--B 133 A. 157--B
zone capital corporation may serve one or more zones within an economic
development region or zones within two or more regions. Prior to the
establishment of a zone capital corporation, the zone board and the
commissioner of the department of economic development shall approve the
formation of the proposed zone capital corporation, its board of direc-
tors and management, and its procedures for making, servicing and moni-
toring investments. In no event, however, shall an empire zone capital
corporation acquire an ownership interest in any certified business firm
which amounts to more than twenty-five percent of the ownership interest
of such certified business firm. No loan to or investment in any busi-
ness firm shall be made by an empire zone capital corporation located in
a zone within a town with a population of more than twenty-five thou-
sand, until such corporation has accumulated at least two hundred thou-
sand dollars in capital stock. No loan or investment in any business
firm shall be made by an empire zone capital corporation located in a
zone within a town with a population of less than twenty-five thousand
until such corporation has accumulated at least one hundred thousand
dollars in capital stock. A zone capital corporation shall submit to the
zone board an annual report on its activities.
S 10. Subdivision (a) of section 969 of the general municipal law, as
amended by section 5 of part A of chapter 63 of the laws of 2005, is
amended to read as follows:
(a) Except as provided in this section, any designation of an area as
an empire zone shall remain in effect during the period beginning on the
date of designation and ending June thirtieth, two thousand [eleven]
TEN.
S 11. Subdivision 19 of section 210 of the tax law is amended by
adding a new paragraph (e-1) to read as follows:
(E-1) ANY CARRY OVER OF A CREDIT FROM PRIOR TAXABLE YEARS WILL NOT BE
ALLOWED IF AN EMPIRE ZONE RETENTION CERTIFICATE IS NOT ISSUED PURSUANT
TO SUBDIVISION (W) OF SECTION NINE HUNDRED FIFTY-NINE OF THE GENERAL
MUNICIPAL LAW TO THE EMPIRE ZONE ENTERPRISE WHICH IS THE BASIS OF THE
CREDIT.
S 12. Subsection (k) of section 606 of the tax law is amended by
adding a new paragraph 5-a to read as follows:
(5-A) ANY CARRY OVER OF A CREDIT FROM PRIOR TAXABLE YEARS WILL NOT BE
ALLOWED IF AN EMPIRE ZONE RETENTION CERTIFICATE IS NOT ISSUED PURSUANT
TO SUBDIVISION (W) OF SECTION NINE HUNDRED FIFTY-NINE OF THE GENERAL
MUNICIPAL LAW TO THE EMPIRE ZONE ENTERPRISE WHICH IS THE BASIS OF THE
CREDIT.
S 13. Subsection (e) of section 1456 of the tax law is amended by
adding a new paragraph 5-a to read as follows:
(5-A) ANY CARRY OVER OF A CREDIT FROM PRIOR TAXABLE YEARS WILL NOT BE
ALLOWED IF AN EMPIRE ZONE RETENTION CERTIFICATE IS NOT ISSUED PURSUANT
TO SUBDIVISION (W) OF SECTION NINE HUNDRED FIFTY-NINE OF THE GENERAL
MUNICIPAL LAW TO THE EMPIRE ZONE ENTERPRISE WHICH IS THE BASIS OF THE
CREDIT.
S 14. Subdivision (g) of section 1511 of the tax law is amended by
adding a new paragraph 5-a to read as follows:
(5-A) ANY CARRY OVER OF A CREDIT FROM PRIOR TAXABLE YEARS WILL NOT BE
ALLOWED IF AN EMPIRE ZONE RETENTION CERTIFICATE IS NOT ISSUED PURSUANT
TO SUBDIVISION (W) OF SECTION NINE HUNDRED FIFTY-NINE OF THE GENERAL
MUNICIPAL LAW TO THE EMPIRE ZONE ENTERPRISE WHICH IS THE BASIS OF THE
CREDIT.
S 15. Subdivision 12-B of section 210 of the tax law is amended by
adding a new paragraph (d-1) to read as follows:
S. 57--B 134 A. 157--B
(D-1) ANY CARRY OVER OF A CREDIT FROM PRIOR TAXABLE YEARS WILL NOT BE
ALLOWED IF AN EMPIRE ZONE RETENTION CERTIFICATE IS NOT ISSUED PURSUANT
TO SUBDIVISION (W) OF SECTION NINE HUNDRED FIFTY-NINE OF THE GENERAL
MUNICIPAL LAW TO THE EMPIRE ZONE ENTERPRISE WHICH IS THE BASIS OF THE
CREDIT.
S 16. Subsection (j) of section 606 of the tax law is amended by
adding a new paragraph 4-a to read as follows:
(4-A) ANY CARRY OVER OF A CREDIT FROM PRIOR TAXABLE YEARS WILL NOT BE
ALLOWED IF AN EMPIRE ZONE RETENTION CERTIFICATE IS NOT ISSUED PURSUANT
TO SUBDIVISION (W) OF SECTION NINE HUNDRED FIFTY-NINE OF THE GENERAL
MUNICIPAL LAW TO THE EMPIRE ZONE ENTERPRISE WHICH IS THE BASIS OF THE
CREDIT.
S 17. Subdivision 12-C of section 210 of the tax law is amended by
adding a new paragraph (c-1) to read as follows:
(C-1) ANY CARRY OVER OF A CREDIT FROM PRIOR TAXABLE YEARS WILL NOT BE
ALLOWED IF AN EMPIRE ZONE RETENTION CERTIFICATE IS NOT ISSUED PURSUANT
TO SUBDIVISION (W) OF SECTION NINE HUNDRED FIFTY-NINE OF THE GENERAL
MUNICIPAL LAW TO THE EMPIRE ZONE ENTERPRISE WHICH IS THE BASIS OF THE
CREDIT.
S 18. Subsection (j-1) of section 606 of the tax law is amended by
adding a new paragraph 3-a to read as follows:
(3-A) ANY CARRY OVER OF A CREDIT FROM PRIOR TAXABLE YEARS WILL NOT BE
ALLOWED TO AN EMPIRE ZONE ENTERPRISE WHICH IS THE BASIS OF THE CREDIT,
IF AN EMPIRE ZONE RETENTION CERTIFICATE IS NOT ISSUED TO SUCH ENTITY
PURSUANT TO SUBDIVISION (W) OF SECTION NINE HUNDRED FIFTY-NINE OF THE
GENERAL MUNICIPAL LAW.
S 19. Subdivision 20 of section 210 of the tax law is amended by
adding a new paragraph (b-1) to read as follows:
(B-1) ANY CARRY OVER OF A CREDIT FROM PRIOR TAXABLE YEARS WILL NOT BE
ALLOWED TO AN EMPIRE ZONE ENTERPRISE WHICH IS THE BASIS OF THE CREDIT,
IF AN EMPIRE ZONE RETENTION CERTIFICATE IS NOT ISSUED TO SUCH ENTITY
PURSUANT TO SUBDIVISION (W) OF SECTION NINE HUNDRED FIFTY-NINE OF THE
GENERAL MUNICIPAL LAW.
S 20. Subsection (1) of section 606 of the tax law is amended by
adding a new paragraph 1-a to read as follows:
(1-A) ANY CARRY OVER OF A CREDIT FROM PRIOR TAXABLE YEARS WILL NOT BE
ALLOWED TO AN EMPIRE ZONE ENTERPRISE WHICH IS THE BASIS OF THE CREDIT,
IF AN EMPIRE ZONE RETENTION CERTIFICATE IS NOT ISSUED TO SUCH ENTITY
PURSUANT TO SUBDIVISION (W) OF SECTION NINE HUNDRED FIFTY-NINE OF THE
GENERAL MUNICIPAL LAW.
S 21. Subsection (d) of section 1456 of the tax law is amended by
adding a new paragraph 2-a to read as follows:
(2-A) ANY CARRY OVER OF A CREDIT FROM PRIOR TAXABLE YEARS WILL NOT BE
ALLOWED TO AN EMPIRE ZONE ENTERPRISE WHICH IS THE BASIS OF THE CREDIT,
IF AN EMPIRE ZONE RETENTION CERTIFICATE IS NOT ISSUED TO SUCH ENTITY
PURSUANT TO SUBDIVISION (W) OF SECTION NINE HUNDRED FIFTY-NINE OF THE
GENERAL MUNICIPAL LAW.
S 22. Subdivision (h) of section 1511 of the tax law is amended by
adding a new paragraph 2-a to read as follows:
(2-A) ANY CARRY OVER OF A CREDIT FROM PRIOR TAXABLE YEARS WILL NOT BE
ALLOWED TO AN EMPIRE ZONE ENTERPRISE WHICH IS THE BASIS OF THE CREDIT,
IF AN EMPIRE ZONE RETENTION CERTIFICATE IS NOT ISSUED TO SUCH ENTITY
PURSUANT TO SUBDIVISION (W) OF SECTION NINE HUNDRED FIFTY-NINE OF THE
GENERAL MUNICIPAL LAW.
S 23. Section 1088 of the tax law is amended by adding a new
subsection (h) to read as follows:
S. 57--B 135 A. 157--B
(H) NOTWITHSTANDING ANY OTHER PROVISION IN THIS SECTION, FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND EIGHT AND BEFORE
JANUARY FIRST, TWO THOUSAND NINE, INTEREST WILL BE ALLOWED ON AN OVER-
PAYMENT ON ANY RETURN OR REPORT ON WHICH ONE OR MORE EMPIRE ZONE TAX
CREDITS ARE CLAIMED, ONLY FROM THE ONE HUNDRED EIGHTIETH DAY AFTER THE
TAXPAYER FILES WITH THE DEPARTMENT AN EMPIRE ZONE RETENTION CERTIFICATE
ISSUED PURSUANT TO SUBDIVISION (W) OF SECTION NINE HUNDRED FIFTY-NINE OF
THE GENERAL MUNICIPAL LAW TO THE EMPIRE ZONE ENTERPRISE WHICH IS THE
BASIS FOR THE TAX CREDIT OR CREDITS CLAIMED ON THE RETURN OR REPORT.
S 24. Section 688 of the tax law is amended by adding a new subsection
(h) to read as follows:
(H) NOTWITHSTANDING ANY OTHER PROVISIONS IN THIS SECTION, FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND EIGHT AND BEFORE
JANUARY FIRST, TWO THOUSAND NINE, INTEREST WILL BE ALLOWED ON AN OVER-
PAYMENT ON ANY RETURN OR REPORT ON WHICH ONE OR MORE EMPIRE ZONE TAX
CREDITS ARE CLAIMED, ONLY FROM THE ONE HUNDRED EIGHTIETH DAY AFTER THE
TAXPAYER FILES WITH THE DEPARTMENT AN EMPIRE ZONE RETENTION CERTIFICATE
ISSUED PURSUANT TO SUBDIVISION (W) OF SECTION NINE HUNDRED FIFTY-NINE OF
THE GENERAL MUNICIPAL LAW TO THE EMPIRE ZONE ENTERPRISE WHICH IS THE
BASIS FOR THE TAX CREDIT OR CREDITS CLAIMED ON THE RETURN OR REPORT.
S 25. Subsection (c) of section 1089 of the tax law is amended by
adding a new paragraph 4 to read as follows:
(4) NOTWITHSTANDING PARAGRAPH THREE OF THIS SUBSECTION, NO PETITION
MAY BE FILED BY A TAXPAYER CLAIMING A REFUND OF ONE OR MORE EMPIRE ZONE
TAX CREDITS FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND EIGHT AND BEFORE JANUARY FIRST, TWO THOUSAND NINE, UNTIL SIX
MONTHS HAVE EXPIRED AFTER THE DATE ON WHICH AN EMPIRE ZONE RETENTION
CERTIFICATE WAS ISSUED PURSUANT TO SUBDIVISION (W) OF SECTION NINE
HUNDRED FIFTY-NINE OF THE GENERAL MUNICIPAL LAW TO THE EMPIRE ZONE
ENTERPRISE WHICH IS THE BASIS FOR THE TAX CREDIT OR CREDITS CLAIMED ON
THE RETURN OR REPORT.
S 26. Subsection (c) of section 689 of the tax law is amended by
adding a new paragraph 4 to read as follows:
(4) NOTWITHSTANDING PARAGRAPH THREE OF THIS SUBSECTION, NO PETITION
MAY BE FILED BY A TAXPAYER CLAIMING A REFUND OF ONE OR MORE EMPIRE ZONE
TAX CREDITS FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND EIGHT AND BEFORE JANUARY FIRST, TWO THOUSAND NINE, UNTIL SIX
MONTHS HAVE EXPIRED AFTER THE DATE ON WHICH AN EMPIRE ZONE RETENTION
CERTIFICATE WAS ISSUED PURSUANT TO SUBDIVISION (W) OF SECTION NINE
HUNDRED FIFTY-NINE OF THE GENERAL MUNICIPAL LAW TO THE EMPIRE ZONE
ENTERPRISE WHICH IS THE BASIS FOR THE TAX CREDIT OR CREDITS CLAIMED ON
THE RETURN OR REPORT.
S 27. Section 1085 of the tax law is amended by adding a new
subsection (k-2) to read as follows:
(K-2) NO PENALTY WILL BE IMPOSED PURSUANT TO SUBSECTION (C) OR (K) OF
THIS SECTION FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND EIGHT AND BEFORE JANUARY FIRST, TWO THOUSAND NINE RESULTING
FROM THE DENIAL OF AN EMPIRE ZONE TAX CREDIT CLAIMED BY THE TAXPAYER
BECAUSE AN EMPIRE ZONE RETENTION CERTIFICATE WAS NOT ISSUED PURSUANT TO
SUBDIVISION (W) OF SECTION NINE HUNDRED FIFTY-NINE OF THE GENERAL MUNIC-
IPAL LAW TO THE EMPIRE ZONE ENTERPRISE WHICH IS THE BASIS FOR THE TAX
CREDIT OR CREDITS CLAIMED ON THE RETURN OR REPORT.
S 28. Section 685 of the tax law is amended by adding a new subsection
(p-2) to read as follows:
(P-2) NO PENALTY WILL BE IMPOSED PURSUANT TO SUBSECTION (C) OR (P) OF
THIS SECTION FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
S. 57--B 136 A. 157--B
THOUSAND EIGHT AND BEFORE JANUARY FIRST, TWO THOUSAND NINE RESULTING
FROM THE DENIAL OF AN EMPIRE ZONE TAX CREDIT CLAIMED BY THE TAXPAYER
BECAUSE AN EMPIRE ZONE RETENTION CERTIFICATE WAS NOT ISSUED PURSUANT TO
SUBDIVISION (W) OF SECTION NINE HUNDRED FIFTY-NINE OF THE GENERAL MUNIC-
IPAL LAW TO THE EMPIRE ZONE ENTERPRISE WHICH IS THE BASIS FOR THE TAX
CREDIT OR CREDITS CLAIMED ON THE RETURN.
S 29. Subdivision (b) of section 15 of the tax law is amended by
adding a new paragraph 3 to read as follows:
(3) FOR A BUSINESS ENTERPRISE WHICH IS FIRST CERTIFIED UNDER ARTICLE
EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW ON OR AFTER APRIL FIRST, TWO
THOUSAND NINE, THE CREDIT ALLOWED SHALL BE SEVENTY-FIVE PERCENT OF THE
AMOUNT CALCULATED UNDER PARAGRAPH TWO OF THIS SUBDIVISION.
S 30. Subdivision (z) of section 1115 of the tax law is REPEALED.
S 31. Section 1119 of the tax law is amended by adding a new subdivi-
sion (d) to read as follows:
(D)(1) SUBJECT TO THE CONDITIONS AND LIMITATIONS PROVIDED FOR IN THIS
SECTION, A REFUND OR CREDIT WILL BE ALLOWED FOR TAXES IMPOSED ON THE
RETAIL SALE OF TANGIBLE PERSONAL PROPERTY DESCRIBED IN SUBDIVISION (A)
OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE, AND ON EVERY SALE OF
SERVICES DESCRIBED IN SUBDIVISIONS (B) AND (C) OF SUCH SECTION, AND
CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR, OR FOR THE USE OF,
SUCH TANGIBLE PERSONAL PROPERTY OR SERVICES, WHERE SUCH TANGIBLE
PERSONAL PROPERTY OR SERVICES ARE SOLD TO A QUALIFIED EMPIRE ZONE ENTER-
PRISE, PROVIDED THAT (A) SUCH TANGIBLE PERSONAL PROPERTY OR TANGIBLE
PERSONAL PROPERTY UPON WHICH SUCH A SERVICE HAS BEEN PERFORMED OR SUCH
SERVICE (OTHER THAN A SERVICE DESCRIBED IN SUBDIVISION (B) OF SECTION
ELEVEN HUNDRED FIVE OF THIS ARTICLE) IS DIRECTLY AND PREDOMINANTLY, OR
SUCH A SERVICE DESCRIBED IN CLAUSE (A) OR (D) OF PARAGRAPH ONE OF SUCH
SUBDIVISION (B) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE IS
DIRECTLY AND EXCLUSIVELY, USED OR CONSUMED BY SUCH ENTERPRISE IN AN AREA
DESIGNATED AS AN EMPIRE ZONE PURSUANT TO ARTICLE EIGHTEEN-B OF THE
GENERAL MUNICIPAL LAW WITH RESPECT TO WHICH SUCH ENTERPRISE IS CERTIFIED
PURSUANT TO SUCH ARTICLE EIGHTEEN-B, OR (B) SUCH A SERVICE DESCRIBED IN
CLAUSE (B) OR (C) OF PARAGRAPH ONE OF SUBDIVISION (B) OF SECTION ELEVEN
HUNDRED FIVE OF THIS ARTICLE IS DELIVERED AND BILLED TO SUCH ENTERPRISE
AT AN ADDRESS IN SUCH EMPIRE ZONE, OR (C) THE ENTERPRISE'S PLACE OF
PRIMARY USE OF THE SERVICE DESCRIBED IN PARAGRAPH TWO OF SUCH SUBDIVI-
SION (B) OF SECTION ELEVEN HUNDRED FIVE IS AT AN ADDRESS IN SUCH EMPIRE
ZONE; PROVIDED, FURTHER, THAT, IN ORDER FOR A MOTOR VEHICLE, AS DEFINED
IN SUBDIVISION (C) OF SECTION ELEVEN HUNDRED SEVENTEEN OF THIS ARTICLE,
OR TANGIBLE PERSONAL PROPERTY RELATED TO SUCH A MOTOR VEHICLE TO BE
FOUND TO BE USED PREDOMINANTLY IN SUCH A ZONE, AT LEAST FIFTY PERCENT OF
SUCH MOTOR VEHICLE'S USE SHALL BE EXCLUSIVELY WITHIN SUCH ZONE OR AT
LEAST FIFTY PERCENT OF SUCH MOTOR VEHICLE'S USE SHALL BE IN ACTIVITIES
ORIGINATING OR TERMINATING IN SUCH ZONE, OR BOTH; AND EITHER OR BOTH
SUCH USAGES SHALL BE COMPUTED EITHER ON THE BASIS OF MILEAGE OR HOURS OF
USE, AT THE DISCRETION OF SUCH ENTERPRISE. FOR PURPOSES OF THIS SUBDIVI-
SION, TANGIBLE PERSONAL PROPERTY RELATED TO SUCH A MOTOR VEHICLE SHALL
INCLUDE A BATTERY, DIESEL MOTOR FUEL, AN ENGINE, ENGINE COMPONENTS,
MOTOR FUEL, A MUFFLER, TIRES AND SIMILAR TANGIBLE PERSONAL PROPERTY USED
IN OR ON SUCH A MOTOR VEHICLE.
(2) SUBJECT TO THE CONDITIONS AND LIMITATIONS PROVIDED FOR IN THIS
SECTION, A REFUND OR CREDIT WILL BE ALLOWED FOR TAXES IMPOSED ON THE
RETAIL SALE OF, AND CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR,
OR FOR THE USE OF, TANGIBLE PERSONAL PROPERTY SOLD TO A CONTRACTOR,
SUBCONTRACTOR OR REPAIRMAN FOR USE IN (A) ERECTING A STRUCTURE OR BUILD-
S. 57--B 137 A. 157--B
ING OF A QUALIFIED EMPIRE ZONE ENTERPRISE, (B) ADDING TO, ALTERING OR
IMPROVING REAL PROPERTY, PROPERTY OR LAND OF SUCH AN ENTERPRISE OR (C)
MAINTAINING, SERVICING OR REPAIRING REAL PROPERTY, PROPERTY OR LAND OF
SUCH AN ENTERPRISE, AS THE TERMS REAL PROPERTY, PROPERTY OR LAND ARE
DEFINED IN THE REAL PROPERTY TAX LAW; PROVIDED, HOWEVER, NO CREDIT OR
REFUND WILL BE ALLOWED UNDER THIS PARAGRAPH UNLESS SUCH TANGIBLE
PERSONAL PROPERTY IS TO BECOME AN INTEGRAL COMPONENT PART OF SUCH STRUC-
TURE, BUILDING, REAL PROPERTY, PROPERTY OR LAND LOCATED IN AN AREA
DESIGNATED AS AN EMPIRE ZONE PURSUANT TO ARTICLE EIGHTEEN-B OF THE
GENERAL MUNICIPAL LAW IN, AND WITH RESPECT TO WHICH SUCH ENTERPRISE IS
CERTIFIED PURSUANT TO SUCH ARTICLE EIGHTEEN-B.
(3) EXCEPT AS OTHERWISE PROVIDED BY LAW, THE REFUND OR CREDIT PROVIDED
FOR IN THIS SUBDIVISION WILL NOT APPLY TO TAXES IMPOSED BY PARAGRAPH TEN
OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED
SEVEN OF THIS ARTICLE OR TO TAXES IMPOSED PURSUANT TO THE AUTHORITY OF
ARTICLE TWENTY-NINE OF THIS CHAPTER.
(4) IN THOSE INSTANCES WHEN THE PROVISIONS OF SUBDIVISION (W) OF
SECTION NINE HUNDRED FIFTY-NINE OF THE GENERAL MUNICIPAL LAW ARE APPLI-
CABLE, NO REFUND OR CREDIT WILL BE ALLOWED UNDER THIS SUBDIVISION UNLESS
THE QUALIFIED EMPIRE ZONE ENTERPRISE HAS BEEN ISSUED AN EMPIRE ZONE
RETENTION CERTIFICATE.
(5) A TAXPAYER MAY NOT APPLY FOR A CREDIT OR REFUND UNDER THIS SUBDI-
VISION MORE FREQUENTLY THAN ONCE A SALES TAX QUARTER, PURSUANT TO SUBDI-
VISION (B) OF SECTION ELEVEN HUNDRED THIRTY-SIX OF THIS ARTICLE.
(6) ANY REFERENCE IN THIS CHAPTER TO FORMER SUBDIVISION (Z) OF SECTION
ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE WILL BE DEEMED TO BE A REFERENCE
TO THIS SUBDIVISION.
(7) NOTWITHSTANDING ANY OTHER PROVISION IN THIS ARTICLE, ARTICLE TWEN-
TY-NINE OF THIS CHAPTER, OR ANY OTHER LAW TO THE CONTRARY, A CREDIT OR
REFUND FOR ANY SALE OR USE UNDER THIS SECTION SHALL NOT BE ALLOWED TO A
PERSON THAT IS FIRST CERTIFIED UNDER ARTICLE EIGHTEEN-B OF THE GENERAL
MUNICIPAL LAW ON OR AFTER APRIL FIRST, TWO THOUSAND NINE, UNLESS THAT
SALE OR USE IS ELIGIBLE FOR A CREDIT OR REFUND OF THE COUNTY OR CITY
SALES AND COMPENSATING USE TAXES IMPOSED PURSUANT TO THE AUTHORITY OF
SUBPART B OF PART I OF ARTICLE TWENTY-NINE OF THIS CHAPTER.
S 32. Paragraph 2 of subdivision (a) of section 14 of the tax law, as
amended by section 1 of part AA of chapter 62 of the laws of 2006, is
amended to read as follows:
(2) for purposes of articles twenty-eight and twenty-nine of this
chapter, during the "sales and use tax benefit period." Such period
shall consist of one hundred twenty consecutive months beginning on the
later of (A) March first, two thousand one, or (B) WITH REGARD TO BUSI-
NESS ENTERPRISES CERTIFIED PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL
MUNICIPAL LAW PRIOR TO APRIL FIRST, TWO THOUSAND NINE, the first day of
the month next following the date of issuance of a qualified empire zone
enterprise certification by the commissioner under subdivision (h) of
this section, OR (C) WITH REGARD TO BUSINESS ENTERPRISES CERTIFIED
PURSUANT TO SUCH ARTICLE EIGHTEEN-B ON OR AFTER APRIL FIRST, TWO THOU-
SAND NINE, THE FIRST DAY OF THE MONTH NEXT FOLLOWING THE DATE OF CERTIF-
ICATION UNDER ARTICLE EIGHTEEN-B AS AN EMPIRE ZONE BUSINESS. Provided
however, such period shall not include any month falling within a taxa-
ble year immediately preceded by a taxable year with respect to which
the business enterprise did not meet the employment test.
S 33. Subdivision (h) of section 14 of the tax law is REPEALED.
S. 57--B 138 A. 157--B
S 34. Subparagraph (i) of paragraph 1 of subdivision (a) of section
1210 of the tax law, as amended by section 4 of part SS1 of chapter 57
of the laws of 2008, is amended to read as follows:
(i) Either, all of the taxes described in article twenty-eight of this
chapter, at the same uniform rate, as to which taxes all provisions of
the local laws, ordinances or resolutions imposing such taxes shall be
identical, except as to rate and except as otherwise provided, with the
corresponding provisions in such article twenty-eight, including the
definition and exemption provisions of such article, so far as the
provisions of such article twenty-eight can be made applicable to the
taxes imposed by such city or county and with such limitations and
special provisions as are set forth in this article. The taxes author-
ized under this subdivision may not be imposed by a city or county
unless the local law, ordinance or resolution imposes such taxes so as
to include all portions and all types of receipts, charges or rents,
subject to state tax under sections eleven hundred five and eleven
hundred ten of this chapter, except as otherwise provided. (I) Any local
law, ordinance or resolution enacted by any city of less than one
million or by any county or school district, imposing the taxes author-
ized by this subdivision, shall, notwithstanding any provision of law to
the contrary, exclude from the operation of such local taxes all sales
of tangible personal property for use or consumption directly and
predominantly in the production of tangible personal property, gas,
electricity, refrigeration or steam, for sale, by manufacturing, proc-
essing, generating, assembly, refining, mining or extracting; and all
sales of tangible personal property for use or consumption predominantly
either in the production of tangible personal property, for sale, by
farming or in a commercial horse boarding operation, or in both; and,
unless such city, county or school district elects otherwise, shall omit
the provision for credit or refund contained in clause six of subdivi-
sion (a) OR SUBDIVISION (D) of section eleven hundred nineteen of this
chapter. (II) Any local law, ordinance or resolution enacted by any
city, county or school district, imposing the taxes authorized by this
subdivision, shall omit the residential solar energy systems equipment
exemption provided for in subdivision (ee)[,] AND the clothing and foot-
wear exemption provided for in paragraph thirty of subdivision (a) [and
the qualified empire zone enterprise exemptions provided for in subdivi-
sion (z)] of section eleven hundred fifteen of this chapter, unless such
city, county or school district elects otherwise as to either such resi-
dential solar energy systems equipment exemption or such clothing and
footwear exemption [or such qualified empire zone enterprise exemptions;
provided that if such a city having a population of one million or more
in which the taxes imposed by section eleven hundred seven of this chap-
ter are in effect enacts the resolution described in subdivision (k) of
this section or repeals such resolution or enacts the resolution
described in subdivision (l) of this section or repeals such resolution
or enacts the resolution described in subdivision (n) of this section or
repeals such resolution, such resolution or repeal shall also be deemed
to amend any local law, ordinance or resolution enacted by such a city
imposing such taxes pursuant to the authority of this subdivision,
whether or not such taxes are suspended at the time such city enacts its
resolution pursuant to subdivision (k), (l) or (n) of this section or at
the time of any such repeal; provided, further, that any such local law,
ordinance or resolution and section eleven hundred seven of this chap-
ter, as deemed to be amended in the event a city of one million or more
enacts a resolution pursuant to the authority of subdivision (k), (l) or
S. 57--B 139 A. 157--B
(n) of this section, shall be further amended, as provided in section
twelve hundred eighteen of this subpart, so that the residential solar
energy systems equipment exemption or the clothing and footwear
exemption or the qualified empire zone enterprise exemptions in any such
local law, ordinance or resolution or in such section eleven hundred
seven are the same, as the case may be, as the residential solar energy
systems equipment exemption provided for in subdivision (ee), the cloth-
ing and footwear exemption in paragraph thirty of subdivision (a) or the
qualified empire zone enterprise exemptions in subdivision (z) of
section eleven hundred fifteen of this chapter].
S 35. Paragraph 4 of subdivision (a) of section 1210 of the tax law,
as amended by section 5 of part SS1 of chapter 57 of the laws of 2008,
is amended to read as follows:
(4) Notwithstanding any other provision of law to the contrary, any
local law enacted by any city of one million or more that imposes the
taxes authorized by this subdivision (i) may omit the exception provided
in subparagraph (ii) of paragraph three of subdivision (c) of section
eleven hundred five of this chapter for receipts from laundering, dry-
cleaning, tailoring, weaving, pressing, shoe repairing and shoe shining;
(ii) may impose the tax described in paragraph six of subdivision (c) of
section eleven hundred five of this chapter at a rate in addition to the
rate prescribed by this section not to exceed two percent in multiples
of one-half of one percent; (iii) shall provide that the tax described
in paragraph six of subdivision (c) of section eleven hundred five of
this chapter does not apply to facilities owned and operated by the city
or an agency or instrumentality of the city or a public corporation the
majority of whose members are appointed by the chief executive officer
of the city or the legislative body of the city or both of them; (iv)
shall not include any tax on receipts from, or the use of, the services
described in paragraph seven of subdivision (c) of section eleven
hundred five of this chapter; (v) shall provide that, for purposes of
the tax described in subdivision (e) of section eleven hundred five of
this chapter, "permanent resident" means any occupant of any room or
rooms in a hotel for at least one hundred eighty consecutive days with
regard to the period of such occupancy; (vi) may omit the exception
provided in paragraph one of subdivision (f) of section eleven hundred
five of this chapter for charges to a patron for admission to, or use
of, facilities for sporting activities in which the patron is to be a
participant, such as bowling alleys and swimming pools; (vii) shall not
provide the clothing and footwear exemption in paragraph thirty of
subdivision (a) of section eleven hundred fifteen of this chapter but
must exempt clothing and footwear and any item used or consumed to make
or repair exempt clothing and which becomes a physical component part of
that exempt clothing; (viii) shall omit the exemption provided in para-
graph forty-one of subdivision (a) of section eleven hundred fifteen of
this chapter; (ix) shall omit the exemption provided in subdivision (c)
of section eleven hundred fifteen of this chapter insofar as it applies
to fuel, gas, electricity, refrigeration and steam, and gas, electric,
refrigeration and steam service of whatever nature for use or consump-
tion directly and exclusively in the production of gas, electricity,
refrigeration or steam; and (x) shall omit, unless such city elects
otherwise, the provision for refund or credit contained in clause six of
subdivision (a) OR IN SUBDIVISION (D) of section eleven hundred nineteen
of this chapter.
S. 57--B 140 A. 157--B
S 36. Paragraph 1 of subdivision (b) of section 1210 of the tax law,
as separately amended by section 36 of part Y and section 11 of part GG
of chapter 63 of the laws of 2000, is amended to read as follows:
(1) Or, one or more of the taxes described in subdivisions (b), (d),
(e) and (f) of section eleven hundred five of this chapter, at the same
uniform rate, including the transitional provisions in section eleven
hundred six of this chapter covering such taxes, but not the taxes
described in subdivisions (a) and (c) of section eleven hundred five of
this chapter. Provided, further, that where the tax described in subdi-
vision (b) of section eleven hundred five of this chapter is imposed,
the compensating use taxes described in clauses (E), (G) and (H) of
subdivision (a) of section eleven hundred ten of this chapter shall also
be imposed. Provided, further, that where the taxes described in subdi-
vision (b) of section eleven hundred five are imposed, such taxes shall
omit the [exemptions provided for in subdivision (z) of section eleven
hundred fifteen] PROVISION FOR REFUND OR CREDIT CONTAINED IN SUBDIVISION
(D) OF SECTION ELEVEN HUNDRED NINETEEN OF THIS CHAPTER with respect to
such taxes described in such subdivision (b) of section eleven hundred
five unless such city or county elects to provide such [exemptions]
PROVISION or, if so elected, to repeal such [exemptions] PROVISION.
S 37. Subdivision (d) of section 1210 of the tax law, as amended by
section 12 of part GG of chapter 63 of the laws of 2000, is amended to
read as follows:
(d) A local law, ordinance or resolution imposing any tax pursuant to
this section, increasing or decreasing the rate of such tax, repealing
or suspending such tax, exempting from such tax the energy sources and
services described in paragraph three of subdivision (a) or of subdivi-
sion (b) of this section or changing the rate of tax imposed on such
energy sources and services or providing for the credit or refund
described in clause six of subdivision (a) of section eleven hundred
nineteen of this chapter must go into effect only on one of the follow-
ing dates: March first, June first, September first or December first;
provided, that a local law, ordinance or resolution providing for the
exemption described in paragraph thirty of subdivision (a) [or providing
for the exemptions described in subdivision (z)] of section eleven
hundred fifteen of this chapter or repealing any such exemption [so
provided and a resolution enacted pursuant to the authority of subdivi-
sion (k) of this section providing such exemption or subdivision (l) of
this section providing such exemptions or repealing such exemption or
exemptions so provided] OR A LOCAL LAW, ORDINANCE OR RESOLUTION PROVID-
ING FOR A REFUND OR CREDIT DESCRIBED IN SUBDIVISION (D) OF SECTION ELEV-
EN HUNDRED NINETEEN OF THIS CHAPTER OR REPEALING SUCH PROVISION SO
PROVIDED must go into effect only on March first. No such local law,
ordinance or resolution shall be effective unless a certified copy of
such law, ordinance or resolution is mailed by registered or certified
mail to the commissioner at the commissioner's office in Albany at least
ninety days prior to the date it is to become effective. However, the
commissioner may waive and reduce such ninety-day minimum notice
requirement to a mailing of such certified copy by registered or certi-
fied mail within a period of not less than thirty days prior to such
effective date if the commissioner deems such action to be consistent
with the commissioner's duties under section twelve hundred fifty of
this article and the commissioner acts by resolution. Where the
restriction provided for in section twelve hundred twenty-three of this
article as to the effective date of a tax and the notice requirement
provided for therein are applicable and have not been waived, the
S. 57--B 141 A. 157--B
restriction and notice requirement in section twelve hundred twenty-
three of this article shall also apply.
S 38. Subdivision (1) of section 1210 of the tax law is REPEALED.
S 39. Subdivision (d) of section 1211 of the tax law, as amended by
chapter 577 of the laws of 1997, is amended to read as follows:
(d) A local law or resolution imposing any tax pursuant to this
section, increasing or decreasing the rate of such tax, repealing or
suspending such tax or providing for the credit or refund described in
clause six of subdivision (a) of section eleven hundred nineteen of this
chapter must go into effect only on one of the following dates: March
first, June first, September first or December first, subject to further
requirement as to effective date provided for in subdivision (b) of this
section; PROVIDED, THAT A LOCAL LAW OR RESOLUTION PROVIDING FOR A REFUND
OR CREDIT DESCRIBED IN SUBDIVISION (D) OF SECTION ELEVEN HUNDRED NINE-
TEEN OF THIS CHAPTER OR REPEALING SUCH PROVISION SO PROVIDED MUST GO
INTO EFFECT ONLY ON MARCH FIRST, SUBJECT TO FURTHER REQUIREMENT AS TO
EFFECTIVE DATE PROVIDED FOR IN SUBDIVISION (B) OF THIS SECTION. No such
local law or resolution shall be effective unless a certified copy of
such local law or resolution is mailed by registered or certified mail
to the commissioner at the commissioner's office in Albany at least
ninety days prior to the date it is to become effective. However, the
commissioner may waive and reduce such ninety-day minimum notice
requirement to a mailing of such certified copy by registered or certi-
fied mail within a period of not less than thirty days prior to such
effective date if the commissioner deems such action to be consistent
with the commissioner's duties under section twelve hundred fifty of
this article and the commissioner acts by resolution. Where the
restriction provided for in section twelve hundred twenty-three of this
article as to the effective date of a tax and the notice requirement
provided for therein are applicable and have not been waived, the
restriction and notice requirement in section twelve hundred twenty-
three of this article shall also apply.
S 40. Subdivisions (a) and (e) of section 1212 of the tax law, as
amended by section 14 of part GG and subdivision (a) as separately
amended by section 37 of part Y of chapter 63 of the laws of 2000, are
amended to read as follows:
(a) Any school district which is coterminous with, partly within or
wholly within a city having a population of less than one hundred twen-
ty-five thousand, is hereby authorized and empowered, by majority vote
of the whole number of its school authorities, to impose for school
district purposes, within the territorial limits of such school district
and without discrimination between residents and nonresidents thereof,
the taxes described in subdivision (b) of section eleven hundred five
(but excluding the tax on prepaid telephone calling services) and the
taxes described in clauses (E) and (H) of subdivision (a) of section
eleven hundred ten, including the transitional provisions in subdivision
(b) of section eleven hundred six of this chapter, so far as such
provisions can be made applicable to the taxes imposed by such school
district and with such limitations and special provisions as are set
forth in this article, such taxes to be imposed at the rate of one-half,
one, one and one-half, two, two and one-half or three percent which rate
shall be uniform for all portions and all types of receipts and uses
subject to such taxes. In respect to such taxes, all provisions of the
resolution imposing them, except as to rate and except as otherwise
provided herein, shall be identical with the corresponding provisions in
such article twenty-eight of this chapter, including the applicable
S. 57--B 142 A. 157--B
definition and exemption provisions of such article, so far as the
provisions of such article twenty-eight of this chapter can be made
applicable to the taxes imposed by such school district and with such
limitations and special provisions as are set forth in this article. The
taxes described in subdivision (b) of section eleven hundred five (but
excluding the tax on prepaid telephone calling service) and clauses (E)
and (H) of subdivision (a) of section eleven hundred ten, including the
transitional provision in subdivision (b) of such section eleven hundred
six of this chapter, may not be imposed by such school district unless
the resolution imposes such taxes so as to include all portions and all
types of receipts and uses subject to tax under such subdivision (but
excluding the tax on prepaid telephone calling service) and clauses.
Provided, however, that, where a school district imposes such taxes,
such taxes shall omit the [exemptions provided for in subdivision (z) of
section eleven hundred fifteen] PROVISION FOR REFUND OR CREDIT CONTAINED
IN SUBDIVISION (D) OF SECTION ELEVEN HUNDRED NINETEEN OF THIS CHAPTER
with respect to such taxes described in such subdivision (b) of section
eleven hundred five unless such school district elects to provide such
[exemptions] PROVISION or, if so elected, to repeal such [exemptions]
PROVISION.
(e) A resolution imposing a tax pursuant to this section, increasing
or decreasing the rate of such tax, or repealing or suspending such tax
must go into effect only on one of the following dates: March first,
June first, September first or December first; provided, that a resol-
ution providing for the [exemptions described in subdivision (z) of
section eleven hundred fifteen] REFUND OR CREDIT DESCRIBED IN SUBDIVI-
SION (D) OF SECTION ELEVEN HUNDRED NINETEEN of this chapter or repealing
such [exemptions so provided] PROVISION must go into effect only on
March first. No such resolution shall be effective unless a certified
copy of such resolution is mailed by registered or certified mail to the
commissioner at the commissioner's office in Albany at least ninety days
prior to the date it is to become effective. However, the commissioner
may waive and reduce such ninety-day minimum notice requirement to a
mailing of such certified copy by registered or certified mail within a
period of not less than thirty days prior to such effective date if the
commissioner deems such action to be consistent with the commissioner's
duties under section twelve hundred fifty of this article and the
commissioner acts by resolution.
S 41. Notwithstanding any provision of state or local law, ordinance
or resolution to the contrary:
(a) Every local enactment that elected the qualified empire zone
enterprise exemptions described in subdivision (z) of section 1115 of
the tax law elected by a county or city pursuant to the authority of
article 29 of the tax law that is in effect on the day before this act
becomes a law or was elected prior to such date to take effect at a
later date is hereby amended to elect the refund or credit described in
subdivision (d) of section 1119 of the tax law.
(b) A county or city that elected the qualified empire zone enterprise
exemptions described in subdivision (z) of section 1115 of the tax law
pursuant to the authority of article 29 of the tax law may repeal such
exemptions in accord with the provisions of subdivisions (d) and (e) of
section 1210 of the tax law.
S 42. Subdivision (m) of section 14 of the tax law is REPEALED.
S 43. The tax law is amended by adding a new section 17 to read as
follows:
S. 57--B 143 A. 157--B
S 17. EMPIRE ZONES TAX BENEFITS REPORT. (A) THE DEPARTMENT OF TAXATION
AND FINANCE MUST PUBLISH AN EMPIRE ZONES TAX BENEFITS REPORT ANNUALLY BY
JANUARY THIRTY-FIRST. THE FIRST REPORT MUST BE PUBLISHED BY JANUARY
THIRTY-FIRST, TWO THOUSAND THIRTEEN.
(B) (1) THE EMPIRE ZONES TAX BENEFITS REPORT MUST CONTAIN THE FOLLOW-
ING INFORMATION ABOUT THE EMPIRE ZONE TAX CREDITS CLAIMED UNDER ARTICLES
NINE, NINE-A, TWENTY-TWO, THIRTY-TWO AND THIRTY-THREE OF THIS CHAPTER
DURING THE PREVIOUS CALENDAR YEAR:
(A) THE NAME OF EACH TAXPAYER CLAIMING A CREDIT; AND
(B) THE AMOUNT OF EACH CREDIT EARNED BY EACH TAXPAYER.
(2) IF THE TAXPAYER CLAIMS A EMPIRE ZONE TAX CREDIT BECAUSE THE
TAXPAYER IS A MEMBER OF A LIMITED LIABILITY COMPANY, A PARTNER IN A
PARTNERSHIP OR A SHAREHOLDER IN A SUBCHAPTER S CORPORATION, THE NAME OF
EACH LIMITED LIABILITY COMPANY, PARTNERSHIP OR SUBCHAPTER S CORPORATION
EARNING ANY OF THOSE CREDITS AND THE AMOUNT OF CREDIT EARNED BY EACH
ENTITY MUST BE INCLUDED IN THE REPORT INSTEAD OF INFORMATION ABOUT THE
TAXPAYER CLAIMING THE CREDIT.
(C) THE EMPIRE ZONES TAX BENEFITS REPORT MUST ALSO CONTAIN THE FOLLOW-
ING INFORMATION ABOUT THE SALES AND USE TAX REFUNDS AND CREDITS CLAIMED
UNDER SUBDIVISION (D) OF SECTION ELEVEN HUNDRED NINETEEN OF THIS CHAPTER
DURING THE PREVIOUS CALENDAR YEAR:
(A) THE NAME OF EACH TAXPAYER CLAIMING A CREDIT OR REFUND; AND
(B) THE TOTAL AMOUNT OF CREDITS OR REFUNDS ALLOWED TO EACH TAXPAYER.
(D) THE INFORMATION INCLUDED IN THE EMPIRE ZONES TAX BENEFITS REPORT
WILL BE BASED ON THE INFORMATION FILED WITH THE DEPARTMENT DURING THE
PREVIOUS CALENDAR YEAR, TO THE EXTENT THAT IT IS PRACTICABLE TO USE THAT
INFORMATION.
S 44. This act shall take effect immediately, provided, however, that:
(a) sections eleven through twenty-two of this act shall apply to
taxable years beginning on and after January 1, 2008;
(b) sections thirty and thirty-one and sections thirty-four through
forty-one of this act shall take effect on the first day of the sales
tax quarter next commencing at least 60 days after this act becomes a
law; and provided further that any refund or credit allowed pursuant to
the amendments made by section thirty-one of this act may not be paid
for that quarter for at least two hundred seventy days after this act
becomes a law;
(c) section thirty-three of this act shall take effect April 1, 2009;
(d) section forty-two of this act shall take effect on January 1,
2012; and
(e) the amendments to subdivision (u) of section 957 of the general
municipal law made by section one of this act shall not affect the
repeal of such subdivision and shall be deemed repealed therewith.
PART T-1
Section 1. Paragraph b of subdivision 1 of section 502 of the tax
law, as amended by section 1 of part E of chapter 60 of the laws of
2007, is amended to read as follows:
b. Every automotive fuel carrier shall apply to the commissioner for a
special certificate of registration, in place of the certificate of
registration described in paragraph a of this subdivision, for each
motor vehicle operated or to be operated by him on the public highways
in this state to transport automotive fuel. Provided, however, a special
certificate of registration shall not be required under this paragraph
for a tractor or other self-propelled device which, except with respect
S. 57--B 144 A. 157--B
to the fuel in the ordinary fuel tank intended for its propulsion,
transports automotive fuel solely by means of a trailer, dolly or other
device drawn by such tractor or other self-propelled device if a certif-
icate of registration prescribed by paragraph a of this subdivision has
been issued for the self-propelled device. Application shall be made
upon an application form prescribed by the commissioner. The applica-
tion shall be accompanied by a fee of [five] FIFTEEN dollars for each
trailer, semi-trailer, dolly or other device [and fifteen dollars for
each self-propelled device] listed in the application. The commissioner
shall issue without further charge such special certificate of registra-
tion for each motor vehicle listed in the application or a consolidated
certificate of registration for all or any portion of such vehicles of
such carrier. All of the provisions of this article with respect to
certificates of registration shall be applicable to the special certif-
icates of registration issued to automotive fuel carriers under this
paragraph as if those provisions had been set forth in full in this
paragraph and expressly referred to the special certificates of regis-
tration required by this paragraph except to the extent that any such
provision is either inconsistent with a provision of this paragraph or
not relevant to the certificates of registration required by this para-
graph. Any certificate of registration shall not be transferable, and
shall be valid until revoked, suspended or surrendered. Such special
certificate of registration shall be maintained in the carrier's regular
place of business. Nothing contained in this paragraph shall in any way
exempt an automotive fuel carrier from payment of the taxes imposed
pursuant to this article.
S 2. Subdivision 8 of section 509 of the tax law, as amended by
section 5 of part E of chapter 60 of the laws of 2007, is amended to
read as follows:
8. To issue replacement certificates of registration at such times as
the commissioner may deem necessary for the proper and efficient
enforcement of the provisions of this article, but not more often than
once every year and to require the surrender of the then outstanding
certificates of registration. All of the provisions of this article with
respect to certificates of registration shall be applicable to replace-
ment certificates of registration issued hereunder, except that the
replacement certificate of registration shall be issued upon payment of
a fee of [four] FIFTEEN dollars for each motor vehicle and [two dollars]
for any trailer, semi-trailer, dolly or other device drawn thereby for
which a certificate of registration is required to be issued under this
article;
S 3. This act shall take effect immediately.
PART U-1
Section 1. Subdivision (b) of section 1101 of the tax law is amended
by adding a new paragraph 34 to read as follows:
(34) TRANSPORTATION SERVICE. THE SERVICE OF TRANSPORTING, CARRYING OR
CONVEYING A PERSON OR PERSONS BY LIVERY SERVICE; WHETHER TO A SINGLE
DESTINATION OR TO MULTIPLE DESTINATIONS; AND WHETHER THE COMPENSATION
PAID BY OR ON BEHALF OF THE PASSENGER IS BASED ON MILEAGE, TRIP, TIME
CONSUMED OR ANY OTHER BASIS. A SERVICE THAT BEGINS AND ENDS IN THIS
STATE IS DEEMED INTRA-STATE EVEN IF IT PASSES OUTSIDE THIS STATE DURING
A PORTION OF THE TRIP. HOWEVER, TRANSPORTATION SERVICE DOES NOT INCLUDE
TRANSPORTATION OF PERSONS IN CONNECTION WITH FUNERALS. TRANSPORTATION
SERVICE INCLUDES TRANSPORTING, CARRYING, OR CONVEYING PROPERTY OF THE
S. 57--B 145 A. 157--B
PERSON BEING TRANSPORTED, WHETHER OWNED BY OR IN THE CARE OF SUCH
PERSON. IN ADDITION TO WHAT IS INCLUDED IN THE DEFINITION OF "RECEIPT"
IN PARAGRAPH THREE OF THIS SUBDIVISION, RECEIPTS FROM THE SALE OF TRANS-
PORTATION SERVICE SUBJECT TO TAX INCLUDE ANY HANDLING, CARRYING,
BAGGAGE, BOOKING SERVICE, ADMINISTRATIVE, MARK-UP, ADDITIONAL, OR OTHER
CHARGE, OF ANY NATURE, MADE IN CONJUNCTION WITH THE TRANSPORTATION
SERVICE. LIVERY SERVICE MEANS SERVICE PROVIDED BY LIMOUSINE, BLACK CAR
OR OTHER MOTOR VEHICLE, WITH A DRIVER, BUT EXCLUDING A TAXICAB AND A
BUS, AND EXCLUDING ANY SCHEDULED PUBLIC SERVICE. LIMOUSINE MEANS A VEHI-
CLE WITH A SEATING CAPACITY OF UP TO FOURTEEN PERSONS, EXCLUDING THE
DRIVER. BLACK CAR MEANS A FOR-HIRE VEHICLE DISPATCHED FROM A CENTRAL
FACILITY.
S 2. Subdivision (c) of section 1105 of the tax law is amended by
adding a new paragraph 10 to read as follows:
(10) TRANSPORTATION SERVICE, WHETHER OR NOT ANY TANGIBLE PERSONAL
PROPERTY IS TRANSFERRED IN CONJUNCTION THEREWITH, AND REGARDLESS OF
WHETHER THE CHARGE IS PAID IN THIS STATE OR OUT OF STATE SO LONG AS THE
SERVICE IS PROVIDED IN THIS STATE.
S 3. Section 1106 of the tax law is amended by adding a new subdivi-
sion (1) to read as follows:
(1) THE TAX IMPOSED BY PARAGRAPH TEN OF SUBDIVISION (C) OF SECTION
ELEVEN HUNDRED FIVE OF THIS PART MUST BE PAID WITH RESPECT TO RECEIPTS
FROM ALL SALES OF SERVICES ON OR AFTER THE EFFECTIVE DATE OF SUCH PARA-
GRAPH ALTHOUGH RENDERED OR AGREED TO BE RENDERED UNDER A PRIOR CONTRACT.
WHERE A SERVICE IS SOLD ON A MONTHLY, QUARTERLY, YEARLY, OR OTHER TERM
BASIS, THE CHARGE FOR THE SERVICE WILL BE SUBJECT TO THE TAX IMPOSED BY
THAT PARAGRAPH TO THE EXTENT THAT THE CHARGE IS APPLICABLE TO ANY PERIOD
ON OR AFTER THE DATE THE TAX BECOMES EFFECTIVE, AND THE CHARGE MUST BE
APPORTIONED ON THE BASIS OF THE RATIO OF THE NUMBER OF DAYS FALLING
WITHIN THE PERIOD TO THE TOTAL NUMBER OF DAYS IN THE FULL TERM OR PERI-
OD.
S 4. Section 1111 of the tax law is amended by adding a new subdivi-
sion (o) to read as follows:
(O) (1) IF A TRANSPORTATION SERVICE SUBJECT TO TAX UNDER PARAGRAPH TEN
OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED FIVE OF THIS PART IS
PROVIDED BY VEHICLE, AND THE OWNER OR LESSOR OF THE VEHICLE LEASES OR
RENTS THE VEHICLE TO AN UNRELATED PERSON WHO PROVIDES THE TRANSPORTATION
SERVICE, SUCH AS A LIMOUSINE DRIVER WHO DRIVES A LIMOUSINE OWNED BY
ANOTHER PERSON, THEN (I) THE OWNER OR LESSOR IS DEEMED TO PROVIDE THE
TRANSPORTATION SERVICE DURING THE DAY OR OTHER PERIOD THAT THE UNRELATED
PERSON USES THE VEHICLE TO PROVIDE THE SERVICE, (II) THE OWNER OR LESSOR
IS DEEMED TO BE THE VENDOR OF THE SERVICE PROVIDED BY THE UNRELATED
PERSON, (III) THE TAX IMPOSED BY SUCH PARAGRAPH TEN IS DEEMED TO BE
IMPOSED ON THE UNRELATED PERSON, (IV) THE OWNER OR LESSOR, AS VENDOR,
MUST COLLECT THE TAX FROM THE UNRELATED PERSON, BASED ON THE LOCAL
JURISDICTION WHERE THE DRIVER TAKES DELIVERY OF THE VEHICLE AND PAY OVER
SUCH TAX REQUIRED TO BE COLLECTED WITH ITS RETURNS REQUIRED TO BE FILED
UNDER THIS ARTICLE, AND (V) THE RECEIPTS SUBJECT TO THE TAX EQUAL TWO
HUNDRED PERCENT OF THE AMOUNT THAT THE OWNER OR LESSOR CHARGES THE UNRE-
LATED PERSON FOR THE USE OF THE VEHICLE DURING THE DAY OR OTHER PERIOD,
INCLUDING ANY CHARGE RELATED TO INSURANCE, MAINTENANCE, REPAIRS, FUEL,
THE USE, RENTAL OR ECONOMIC VALUE OF ANY VEHICLE OR BUSINESS LICENSE,
AND ANY OTHER CHARGE MADE BY THE OWNER OR LESSOR TO THE UNRELATED PERSON
FOR THE DAY OR OTHER PERIOD, REGARDLESS OF WHETHER THE UNRELATED PERSON
TRANSPORTED, CARRIED OR CONVEYED ANY PERSON OR EARNED ANY FARES WITH
THAT VEHICLE DURING THAT DAY OR OTHER PERIOD.
S. 57--B 146 A. 157--B
(2) NOTWITHSTANDING ANY LAW TO THE CONTRARY:
(I) ANY MUNICIPALITY OR PUBLIC CORPORATION THAT ESTABLISHES OR REGU-
LATES BLACK CAR, LIMOUSINE OR OTHER VEHICLE SERVICE FARES MUST ADJUST
THOSE FARES TO INCLUDE THEREIN THE TAX IMPOSED BY PARAGRAPH TEN OF
SUBDIVISION (C) OF SECTION ELEVEN HUNDRED FIVE OF THIS PART AND THE
TAXES IMPOSED BY OTHER SECTIONS OF THIS PART AND PURSUANT TO THE AUTHOR-
ITY OF ARTICLE TWENTY-NINE OF THIS CHAPTER ON THE SERVICES TAXED BY SUCH
PARAGRAPH TEN AND MUST REQUIRE THAT ANY METERS OR OTHER DEVICES IN THE
VEHICLES OR OTHERWISE THAT MEASURE FARES BE ADJUSTED TO INCLUDE THESE
TAXES, AS THE SAME ARE FROM TIME TO TIME IMPOSED AND AS THE RATES OF
THOSE TAXES MAY CHANGE.
(II) ANY PERSON THAT SELLS THE SERVICES DESCRIBED IN PARAGRAPH ONE OF
THIS SUBDIVISION MUST ADJUST ANY METERS OR OTHER DEVICES IN THE VEHICLES
OR OTHERWISE THAT MEASURE FARES SO THAT THEY TIMELY REFLECT ANY CHANGE
IN THE RATES OF THE TAXES DESCRIBED IN SUBPARAGRAPH (I) OF THIS PARA-
GRAPH. NEITHER THE FAILURE OF A MUNICIPAL OR OTHER PUBLIC CORPORATION TO
ADJUST FARES NOR THE FAILURE OF ANY PERSON TO ADJUST THE METERS OR
DEVICES WILL RELIEVE ANY PERSON FROM THE OBLIGATION TO COLLECT AND PAY
OR PAY OVER SUCH TAXES TIMELY, AT THE CORRECT COMBINED RATE.
(3) FOR PURPOSES OF THIS SUBDIVISION, "UNRELATED PERSON" MEANS A
PERSON OTHER THAN A RELATED PERSON AS DEFINED FOR PURPOSES OF SECTION
FOURTEEN OF THIS CHAPTER.
S 5. Section 1213 of the tax law, as amended by chapter 651 of the
laws of 1999, is amended to read as follows:
S 1213. Deliveries outside the jurisdiction where sale is made. Where
a sale of tangible personal property or services, including prepaid
telephone calling services, but not including other services described
in subdivision (b) of section eleven hundred five OF THIS CHAPTER,
including an agreement therefor, is made in any city, county or school
district, but the property sold, the property upon which the services
were performed or prepaid telephone calling or other service is or will
be delivered to the purchaser elsewhere, such sale shall not be subject
to tax by such city, county or school district. However, if delivery
occurs or will occur in a city, county or school district imposing a tax
on the sale or use of such property, prepaid telephone calling or other
services, the vendor shall be required to collect from the purchaser, as
provided in section twelve hundred fifty-four OF THIS ARTICLE, the
aggregate sales or compensating use taxes imposed by the city, if any,
county and school district in which delivery occurs or will occur, for
distribution by the commissioner to such taxing jurisdiction or juris-
dictions. For the purposes of this section delivery shall be deemed to
include transfer of possession to the purchaser and the receiving of the
property or of the service, including prepaid telephone calling service,
by the purchaser. NOTWITHSTANDING THE FOREGOING, WHERE A TRANSPORTATION
SERVICE DESCRIBED IN PARAGRAPH TEN OF SUBDIVISION (C) OF SECTION ELEVEN
HUNDRED FIVE OF THIS CHAPTER BEGINS IN ONE JURISDICTION BUT ENDS IN
ANOTHER JURISDICTION, ANY TAX IMPOSED BY THIS ARTICLE SHALL BE DUE THE
JURISDICTION OR JURISDICTIONS WHERE THE SERVICE COMMENCED.
S 6. This act shall take effect June 1, 2009.
PART V-1
Section 1. This act enacts into law major components of legislation
which are necessary to implement the state fiscal plan for the 2009-2010
state fiscal year. Each component is wholly contained within a Subpart
identified as Subparts A through J. The effective date for each partic-
S. 57--B 147 A. 157--B
ular provision contained within such Subpart is set forth in the last
section of such Subpart. Any provision in any section contained within a
Subpart, including the effective date of the Subpart, which makes a
reference to a section "of this act", when used in connection with that
particular component, shall be deemed to mean and refer to the corre-
sponding section of the Subpart in which it is found. Section three of
this Part sets forth the general effective date of this Part.
SUBPART A
Section 1. Section 1135 of the tax law is amended by adding a new
subdivision (h) to read as follows:
(H) NOTWITHSTANDING THE PROVISIONS OF SECTION THREE HUNDRED FIVE AND
THREE HUNDRED NINE OF THE STATE TECHNOLOGY LAW OR ANY OTHER LAW, THE
COMMISSIONER MAY REQUIRE ANY PERSON WHO HAS ELECTED TO MAINTAIN IN AN
ELECTRONIC FORMAT ANY PORTION OF THE RECORDS REQUIRED TO BE MAINTAINED
BY THAT PERSON UNDER THIS ARTICLE, TO MAKE THE ELECTRONIC RECORDS AVAIL-
ABLE AND ACCESSIBLE TO THE COMMISSIONER, NOTWITHSTANDING THAT THE
RECORDS ARE ALSO MAINTAINED IN A HARD COPY FORMAT.
S 2. Section 1145 of the tax law is amended by adding a new subdivi-
sion (i) to read as follows:
(I) ANY PERSON REQUIRED TO MAKE OR MAINTAIN RECORDS UNDER THIS ARTICLE
(BUT NOT INCLUDING THE RECORDS REQUIRED UNDER SECTION ELEVEN HUNDRED
FORTY-TWO-A OF THIS PART) WHO FAILS TO MAKE OR MAINTAIN OR MAKE AVAIL-
ABLE TO THE COMMISSIONER THESE RECORDS IS SUBJECT TO A PENALTY NOT TO
EXCEED ONE THOUSAND DOLLARS FOR THE FIRST QUARTER OR PART THEREOF FOR
WHICH THE FAILURE OCCURS AND NOT TO EXCEED FIVE THOUSAND DOLLARS FOR
EACH ADDITIONAL QUARTERLY PERIOD OR PART THEREOF FOR WHICH THE FAILURE
OCCURS. THIS PENALTY IS IN ADDITION TO ANY OTHER PENALTY PROVIDED FOR IN
THIS ARTICLE BUT MAY NOT BE IMPOSED AND COLLECTED MORE THAN ONCE FOR
FAILURES FOR THE SAME QUARTERLY PERIOD OR PART THEREOF. IF THE COMMIS-
SIONER DETERMINES THAT A FAILURE TO MAKE OR MAINTAIN OR MAKE AVAILABLE
RECORDS IN ANY QUARTER WAS ENTIRELY DUE TO REASONABLE CAUSE AND NOT TO
WILLFUL NEGLECT, THE COMMISSIONER MUST REMIT THE PENALTY IMPOSED FOR
THAT QUARTER. THESE PENALTIES WILL BE PAID AND DISPOSED OF IN THE SAME
MANNER AS OTHER REVENUES FROM THIS ARTICLE. THESE PENALTIES WILL BE
DETERMINED, ASSESSED, COLLECTED, PAID AND ENFORCED IN THE SAME MANNER AS
THE TAX IMPOSED BY THIS ARTICLE, AND ALL THE PROVISIONS OF THIS ARTICLE
RELATING TO TAX WILL BE DEEMED ALSO TO APPLY TO THE PENALTIES IMPOSED BY
THIS SUBDIVISION. FOR PURPOSES OF THE PENALTY IMPOSED BY THIS SUBDIVI-
SION, A PERSON WILL BE CONSIDERED TO HAVE FAILED TO MAKE OR MAINTAIN THE
REQUIRED RECORDS WHEN THE RECORDS MADE OR MAINTAINED BY THAT PERSON FOR
A QUARTERLY PERIOD MAKE IT VIRTUALLY IMPOSSIBLE TO VERIFY SALES RECEIPTS
OR THE TAXABILITY OF THOSE RECEIPTS AND TO CONDUCT A COMPLETE AUDIT.
S 3. Section 1145 of the tax law is amended by adding a new subdivi-
sion (j) to read as follows:
(J) ANY PERSON REQUIRED TO MAKE OR MAINTAIN RECORDS UNDER THIS ARTICLE
WHO FAILS TO PRESENT AND MAKE AVAILABLE THESE RECORDS IN AN AUDITABLE
FORM IS SUBJECT TO A PENALTY NOT TO EXCEED ONE THOUSAND DOLLARS FOR EACH
QUARTERLY PERIOD OR PART THEREOF FOR WHICH RECORDS MAINTAINED BY THAT
PERSON ARE NOT PRESENTED AND MADE AVAILABLE BY THAT PERSON IN AUDITABLE
FORM, EVEN IF THESE RECORDS ARE ADEQUATE TO VERIFY CREDITS, RECEIPTS,
AND THE TAXABILITY THEREOF AND TO PERFORM A COMPLETE AUDIT. THIS PENALTY
IS IN ADDITION TO ANY OTHER PENALTY PROVIDED FOR IN THIS ARTICLE, BUT
WILL NOT BE IMPOSED AND COLLECTED MORE THAN ONCE FOR THESE FAILURES FOR
THE SAME QUARTERLY PERIOD OR PART THEREOF. IF THE COMMISSIONER DETER-
S. 57--B 148 A. 157--B
MINES THAT ANY FAILURE DESCRIBED IN THIS SUBDIVISION FOR A QUARTERLY
PERIOD WAS ENTIRELY DUE TO REASONABLE CAUSE AND NOT TO WILLFUL NEGLECT,
THE COMMISSIONER MUST REMIT THE PENALTY IMPOSED FOR THAT QUARTER. THE
PENALTIES IMPOSED BY THIS SUBDIVISION WILL BE PAID AND DISPOSED OF IN
THE SAME MANNER AS OTHER REVENUES FROM THIS ARTICLE. THESE PENALTIES
WILL BE DETERMINED, ASSESSED, COLLECTED, PAID AND ENFORCED IN THE SAME
MANNER AS THE TAX IMPOSED BY THIS ARTICLE, AND ALL THE PROVISIONS OF
THIS ARTICLE RELATING TO TAX WILL BE DEEMED ALSO TO APPLY TO THE PENAL-
TIES IMPOSED BY THIS SUBDIVISION. FOR PURPOSES OF THE PENALTY IMPOSED BY
THIS SUBDIVISION, A PERSON WILL BE CONSIDERED TO HAVE FAILED TO PRESENT
AND MAKE RECORDS AVAILABLE IN AUDITABLE FORM WHEN THE RECORDS PRESENTED
BY THAT PERSON FOR THAT QUARTER LACK SUFFICIENT ORGANIZATION, SUCH AS BY
DATE, INVOICE NUMBER, SALES RECEIPTS, OR SEQUENTIAL NUMBERING, OR ARE
OTHERWISE INADEQUATE (WITHOUT REORGANIZING, REORDERING OR OTHERWISE
REARRANGING THE RECORDS INTO AN AUDITABLE FORM) TO PERMIT DIRECT RECON-
CILIATION OF THE RECEIPTS, INVOICES OR OTHER SOURCE DOCUMENTS WITH THE
ENTRIES FOR THE QUARTERLY PERIOD IN THE BOOKS AND RECORDS AND ON THE
RETURNS OF THAT PERSON.
S 4. Section 1145 of the tax law is amended by adding a new subdivi-
sion (k) to read as follows:
(K) ANY PERSON WHO, HAVING ELECTED TO MAINTAIN IN AN ELECTRONIC FORMAT
ANY PORTION OR ALL OF THE RECORDS HE OR SHE IS REQUIRED TO MAKE AND
MAINTAIN BY THIS ARTICLE, FAILS TO PRESENT AND MAKE THESE RECORDS AVAIL-
ABLE AND ACCESSIBLE TO THE COMMISSIONER IN ELECTRONIC FORMAT, IS SUBJECT
TO A PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS FOR EACH QUARTERLY
PERIOD OR PART THEREOF FOR WHICH THESE ELECTRONIC RECORDS ARE NOT
PRESENTED AND MADE AVAILABLE AND ACCESSIBLE UPON REQUEST, NOTWITHSTAND-
ING THAT THE RECORDS MAY ALSO BE MAINTAINED AND AVAILABLE IN HARD COPY
FORMAT. THIS PENALTY IS IN ADDITION TO ANY OTHER PENALTY PROVIDED FOR IN
THIS ARTICLE, BUT MAY NOT BE IMPOSED AND COLLECTED MORE THAN ONCE FOR A
FAILURE FOR THE SAME QUARTERLY PERIOD OR PART THEREOF. PROVIDED, HOWEV-
ER, NOTHING IN THIS SUBDIVISION WILL PREVENT THE SEPARATE IMPOSITION, IF
APPLICABLE, OF ANY PENALTY IMPOSED BY SUBDIVISION (I) OR (J) OF THIS
SECTION FOR THE SAME QUARTERLY PERIOD OR PART THEREOF. IF THE COMMIS-
SIONER DETERMINES THAT THE FAILURE TO PRESENT AND MAKE ELECTRONICALLY
MAINTAINED RECORDS AVAILABLE AND ACCESSIBLE FOR A QUARTERLY PERIOD WAS
ENTIRELY DUE TO REASONABLE CAUSE AND NOT TO WILLFUL NEGLECT, THE COMMIS-
SIONER MUST REMIT THE PENALTY IMPOSED FOR THAT QUARTER. THESE PENALTIES
WILL BE PAID AND DISPOSED OF IN THE SAME MANNER AS OTHER REVENUES FROM
THIS ARTICLE. THESE PENALTIES WILL BE DETERMINED, ASSESSED, COLLECTED,
PAID AND ENFORCED IN THE SAME MANNER AS THE TAX IMPOSED BY THIS ARTICLE,
AND ALL THE PROVISIONS OF THIS ARTICLE RELATING TO TAX WILL BE DEEMED
ALSO TO APPLY TO THE PENALTY IMPOSED BY THIS SUBDIVISION. FOR PURPOSES
OF THE PENALTY IMPOSED BY THIS SUBDIVISION, A FAILURE TO PRESENT AND
MAKE AVAILABLE AND ACCESSIBLE A RECORD MAINTAINED IN ELECTRONIC FORMAT
INCLUDES NOT ONLY THE DENIAL OF ACCESS TO THE REQUESTED RECORDS THAT
WERE MAINTAINED ELECTRONICALLY, BUT ALSO THE FAILURE TO MAKE AVAILABLE
TO THE COMMISSIONER THE INFORMATION, KNOWLEDGE, OR MEANS NECESSARY TO
ACCESS AND OTHERWISE USE THE ELECTRONICALLY MAINTAINED RECORDS IN THE
INSPECTION AND EXAMINATION OF THESE RECORDS.
S 5. This act shall take effect immediately and apply to failures
occurring on and after such date, except that subdivision (i) of section
1145 of the tax law, as added by section two of this act, shall only
apply for records required to be made and maintained for sales tax quar-
terly periods commencing on or after such date.
S. 57--B 149 A. 157--B
SUBPART B
Section 1. Subsection (g) of section 685 of the tax law, as amended by
chapter 9 of the laws of 1976, is amended to read as follows:
(g) Willful failure to collect and pay over tax.-- Any person required
to collect, truthfully account for, and pay over the tax imposed by this
article who willfully fails to collect such tax or truthfully account
for and pay over such tax or willfully attempts in any manner to evade
or defeat the tax or the payment thereof, shall, in addition to other
penalties provided by law, be liable to a penalty equal to THE SUM OF
(I) the total amount of the tax evaded, or not collected, or not
accounted for and paid over, AND (II) THE INTEREST THAT HAS ACCRUED ON
THE TOTAL AMOUNT OF TAX EVADED ON THE DATE THIS PENALTY IS FIRST IMPOSED
UNTIL THIS PENALTY IS PAID WITH INTEREST THEREON. No addition to tax
under subsections (b) or (e) OF THIS SECTION shall be imposed for any
offense to which this subsection applies. The tax commission shall have
the power, in its discretion, to waive, reduce or compromise any penalty
under this subsection.
S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2009.
SUBPART C
Section 1. Paragraphs (b) and (e) of subdivision 3-a of section 170 of
the tax law, as added by chapter 282 of the laws of 1986, are amended to
read as follows:
(b) A request for a conciliation conference shall be applied for in
the manner as set forth by regulation of the commissioner and, notwith-
standing any provision of law to the contrary, shall suspend the running
of the period of limitations for the filing of a petition protesting
such notice and requesting a hearing, EXCEPT THAT THE RECIPIENT OF A
WRITTEN NOTICE DESCRIBED IN PARAGRAPH (H) OF THIS SUBDIVISION WILL HAVE
THIRTY DAYS FROM THE TIME SUCH REQUEST OF DISCONTINUANCE IS MADE TO
PETITION THE DIVISION OF TAX APPEALS FOR A HEARING. [To discontinue the
conciliation proceeding, the recipient of the notice shall make a
request in writing and such person shall have ninety days from the time
such request of discontinuance is made to petition the division of tax
appeals for a hearing.] The commissioner shall notify the division of
tax appeals when any person requests a conference or requests to discon-
tinue such conference.
(e) A conciliation order shall be rendered within thirty days after
the proceeding is concluded and such order shall, in the absence of a
showing of fraud, malfeasance or misrepresentation of a material fact,
be binding upon the department and the person who requested the confer-
ence, except such order shall not be binding on such person if such
person petitions for the hearing provided for under this chapter within
ninety days after the conciliation order is issued, OR, FOR A CONCIL-
IATION ORDER AFFIRMING A WRITTEN NOTICE DESCRIBED IN PARAGRAPH (H) OF
THIS SUBDIVISION, WITHIN THIRTY DAYS AFTER THE CONCILIATION ORDER IS
ISSUED, notwithstanding any other provision of law to the contrary.
S 2. Subdivision 3-a of section 170 the tax law is amended by adding a
new paragraph (h) to read as follows:
(H) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY PERSON
WHO SEEKS REVIEW BY THE BUREAU OF CONCILIATION AND MEDIATION SERVICES OF
A WRITTEN NOTICE THAT ADVISES THAT PERSON OF (I) THE PROPOSED CANCELLA-
TION, REVOCATION, OR SUSPENSION OF A LICENSE, PERMIT, REGISTRATION, OR
S. 57--B 150 A. 157--B
OTHER CREDENTIAL ISSUED UNDER THE AUTHORITY OF THIS CHAPTER, (II) THE
DENIAL OF AN APPLICATION FOR A LICENSE, PERMIT, REGISTRATION, OR OTHER
CREDENTIAL ISSUED UNDER THE AUTHORITY OF THIS CHAPTER EXCLUDING AN
APPLICATION TO RENEW A CERTIFICATE OF AUTHORITY FILED PURSUANT TO PARA-
GRAPH FIVE OF SUBDIVISION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIR-
TY-FOUR OF THIS CHAPTER AND ANY OTHER LAW, OR, (III) THE IMPOSITION OF A
FRAUD PENALTY UNDER THIS CHAPTER, MUST REQUEST A CONCILIATION CONFERENCE
WITHIN THIRTY DAYS OF RECEIPT OF THAT NOTICE.
S 3. Section 2008 of the tax law, as amended by chapter 401 of the
laws of 1987, is amended to read as follows:
S 2008. Commencement of proceedings. 1. All proceedings in the divi-
sion of tax appeals shall be commenced by the filing of a petition with
the division of tax appeals protesting any written notice of the divi-
sion of taxation which has advised the petitioner of a tax deficiency, a
determination of tax due, a denial of a refund or credit application, a
cancellation, revocation or suspension of a license, permit or registra-
tion, a denial of an application for a license, permit or registration
or any other notice which gives a person the right to a hearing in the
division of tax appeals under this chapter or other law.
2. EXPEDITED HEARINGS. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO THE
CONTRARY, ANY PERSON WHO RECEIVES A WRITTEN NOTICE THAT ADVISES THAT
PERSON OF (I) THE PROPOSED CANCELLATION, REVOCATION, OR SUSPENSION OF A
LICENSE, PERMIT, REGISTRATION, OR OTHER CREDENTIAL ISSUED UNDER THE
AUTHORITY OF THIS CHAPTER, (II) THE DENIAL OF AN APPLICATION FOR A
LICENSE, PERMIT, REGISTRATION, OR OTHER CREDENTIAL ISSUED UNDER THE
AUTHORITY OF THIS CHAPTER EXCLUDING AN APPLICATION TO RENEW A CERTIF-
ICATE OF AUTHORITY FILED PURSUANT TO PARAGRAPH FIVE OF SUBDIVISION (A)
OF SECTION ONE THOUSAND ONE HUNDRED THIRTY-FOUR OF THIS CHAPTER AND ANY
OTHER LAW, OR, (III) THE IMPOSITION OF A FRAUD PENALTY UNDER THIS CHAP-
TER, MUST FILE A PETITION WITH THE DIVISION OF TAX APPEALS WITHIN THIRTY
DAYS OF RECEIPT OF THAT NOTICE (UNLESS THAT PERSON HAS REQUESTED A
CONCILIATION CONFERENCE AS PROVIDED IN SUBDIVISION THREE-A OF SECTION
ONE HUNDRED SEVENTY OF THIS CHAPTER), OR THE CANCELLATION, REVOCATION,
SUSPENSION, DENIAL, OR PENALTY WILL BE PERMANENTLY AND IRREVOCABLY
FIXED. AN EXPEDITED HEARING MUST BE SCHEDULED WITHIN TEN BUSINESS DAYS
OF RECEIPT OF THE PETITION.
(B) IN THE CASE OF ANY EXPEDITED HEARING PROVIDED FOR UNDER THIS
SUBDIVISION, THE ADMINISTRATIVE LAW JUDGE MUST RENDER A DECISION WITHIN
THIRTY DAYS FROM RECEIPT OF THE PETITION. WHEN EXCEPTION IS TAKEN TO AN
ADMINISTRATIVE LAW JUDGE'S DETERMINATION, THE TAX APPEALS TRIBUNAL MUST
ISSUE ITS DECISION WITHIN THREE MONTHS FROM RECEIPT OF THE PETITION. ANY
REQUEST BY THE PETITIONER THAT DELAYS THE EXPEDITED HEARING PROCESS WILL
EXTEND THE TIME LIMITATIONS IMPOSED ON THE TRIBUNAL OR THE ADMINISTRA-
TIVE LAW JUDGE TO ISSUE A DECISION OR DETERMINATION. THE TRIBUNAL OR
ADMINISTRATIVE LAW JUDGE MAY NOT APPROVE ANY POSTPONEMENT OR OTHER DELAY
WITHOUT A SHOWING OF GOOD CAUSE BY THE MOVING PARTY AND MUST RENDER A
DEFAULT DETERMINATION OR DECISION AGAINST THE DILATORY PARTY FOR ANY
UNWARRANTED DELAY.
(C) IN ANY CASE WHERE AN EXPEDITED HEARING IS REQUIRED UNDER THIS
SUBDIVISION, IF THE COMMISSIONER BELIEVES THAT THE COLLECTION OF ANY TAX
OR THE PUBLIC SAFETY WILL BE JEOPARDIZED BY DELAY, HE OR SHE MAY IMME-
DIATELY CANCEL, REVOKE, OR SUSPEND A LICENSE, PERMIT, REGISTRATION, OR
OTHER CREDENTIAL ISSUED UNDER THE AUTHORITY OF THIS CHAPTER BEFORE THE
COMMENCEMENT OF THOSE PROCEEDINGS. WRITTEN NOTICE OF THE CANCELLATION,
REVOCATION, OR SUSPENSION MUST BE GIVEN TO THE LICENSEE, PERMITTEE,
REGISTRANT, OR OTHERWISE CREDENTIALED PERSON BY REGISTERED OR CERTIFIED
S. 57--B 151 A. 157--B
MAIL OR PERSONAL SERVICE AS PROVIDED BY THE CIVIL PRACTICE LAW AND
RULES. THE LICENSE, PERMIT, REGISTRATION, OR OTHER CREDENTIAL WILL BE
PERMANENTLY AND IRREVOCABLY CANCELLED, REVOKED, OR SUSPENDED, UNLESS THE
LICENSEE, PERMITTEE, REGISTRANT, OR OTHERWISE CREDENTIALED PERSON, WITH-
IN THIRTY DAYS OF RECEIPT OF THE WRITTEN NOTICE, FILES A PETITION WITH
THE DIVISION OF TAX APPEALS TO REVIEW THE CANCELLATION, REVOCATION, OR
SUSPENSION. AN EXPEDITED HEARING MUST BE SCHEDULED WITHIN TEN BUSINESS
DAYS OF RECEIPT OF THE PETITION.
S 4. This act shall take effect immediately and shall apply to notices
issued on and after such date.
SUBPART D
Section 1. Paragraph a of subdivision twenty-sixth of section 171 of
the tax law, as amended by section 1 of part M3 of chapter 62 of the
laws of 2003, is amended to read as follows:
a. Set the overpayment and underpayment rates of interest for purposes
of articles twelve-A, eighteen, twenty and twenty-one of this chapter.
Such rates shall be the overpayment and underpayment rates of interest
set pursuant to subsection (e) of section one thousand ninety-six of
this chapter, but the underpayment rate shall not be less than [six]
SEVEN AND ONE-HALF percent per annum. Any such rates set by such commis-
sioner shall apply to taxes, or any portion thereof, which remain or
become due or overpaid (other than overpayments under such article twen-
ty and not including reimbursements, if any, under any of such articles)
on or after the date on which such rates become effective and shall
apply only with respect to interest computed or computable for periods
or portions of periods occurring in the period during which such rates
are in effect. In computing the amount of any interest required to be
paid under such articles by such commissioner or by the taxpayer, or any
other amount determined by reference to such amount of interest, such
interest and such amount shall be compounded daily.
S 2. Subsections (a) and (j) of section 684 of the tax law, as amended
by section 6 of part R of chapter 85 of the laws of 2002, are amended to
read as follows:
(a) General.--If any amount of income tax is not paid on or before the
last date prescribed in this article for payment, interest on such
amount at the underpayment rate set by the commissioner pursuant to
section six hundred ninety-seven OF THIS PART, or if no rate is set, at
the rate of [six per cent] SEVEN AND ONE-HALF PERCENT per annum shall be
paid for the period from such last date to the date paid, whether or not
any extension of time for payment was granted. Interest under this
subsection shall not be paid if the amount thereof is less than one
dollar. If the time for filing of a return of tax withheld by an employ-
er is extended, the employer shall pay interest for the period for which
the extension is granted and may not charge such interest to the employ-
ee.
(j) Interest on erroneous refund.--Any portion of tax or other amount
which has been erroneously refunded, and which is recoverable by the
commissioner, shall bear interest at the underpayment rate set by the
commissioner pursuant to section six hundred ninety-seven OF THIS PART,
or if no rate is set, at the rate of [six per cent] SEVEN AND ONE-HALF
PERCENT per annum from the date of the payment of the refund, but only
if it appears that any part of the refund was induced by fraud or a
misrepresentation of a material fact.
S. 57--B 152 A. 157--B
S 3. Paragraph 1 of subsection (c) of section 685 of the tax law, as
amended by section 7 of part R of chapter 85 of the laws of 2002, is
amended to read as follows:
(1) Addition to the tax.--Except as otherwise provided in this
subsection and subsection (d) OF THIS SECTION, in the case of any under-
payment of estimated tax by an individual, there shall be added to the
tax under this article for the taxable year an amount determined by
applying the underpayment rate established under subsection (j) of
section six hundred ninety-seven OF THIS PART, or if no rate is set, at
the rate of [six] SEVEN AND ONE-HALF percent per annum, to the amount of
the underpayment for the period of the underpayment. Such period shall
run from the due date for the required installment to the earlier of the
fifteenth day of the fourth month following the close of the taxable
year or, with respect to any portion of the underpayment, the date on
which such portion is paid. For purposes of determining such date, a
payment of estimated tax shall be credited against unpaid required
installments in the order in which such installments are required to be
paid. There shall be four required installments for each taxable year,
due on April fifteenth, June fifteenth and September fifteenth of such
taxable year and on January fifteenth of the following taxable year.
S 4. Paragraph 1 of subsection (j) of section 697 of the tax law, as
amended by section 2 of part M3 of chapter 62 of the laws of 2003, is
amended to read as follows:
(1) The commissioner shall set the overpayment and underpayment rates
of interest to be paid pursuant to sections six hundred eighty-four, six
hundred eighty-five and six hundred eighty-eight OF THIS PART, but if no
such rates of interest are set, such [rates] OVERPAYMENT RATE shall be
deemed to be set at six percent per annum AND SUCH UNDERPAYMENT RATE
SHALL BE DEEMED TO BE SET AT SEVEN AND ONE-HALF PERCENT PER ANNUM. Such
rates shall be the rates prescribed in paragraphs two and four of this
subsection, but the underpayment rate shall not be less than [six] SEVEN
AND ONE-HALF percent per annum. Any such rates set by the commissioner
shall apply to taxes, or any portion thereof, which remain or become due
or overpaid on or after the date on which such rates become effective
and shall apply only with respect to interest computed or computable for
periods or portions of periods occurring in the period during which such
rates are in effect.
S 5. Subparagraph (B) of paragraph 2 of subsection (j) of section 697
of the tax law, as amended by section 10 of part R of chapter 85 of the
laws of 2002, is amended to read as follows:
(B) Underpayment rate. The underpayment rate of interest set under
this subsection shall be the sum of (i) the federal short-term rate as
provided under paragraph three of this subsection, plus (ii) [four] FIVE
AND ONE-HALF percentage points.
S 6. Subsections (a) and (j) of section 1084 of the tax law, as
amended by section 123 and subsection (j) as relettered by section 148
of chapter 61 of the laws of 1989, are amended to read as follows:
(a) General.--If any amount of tax is not paid on or before the last
date prescribed in article nine or nine-a OF THIS CHAPTER for payment,
interest on such amount at the underpayment rate set by the commissioner
[of taxation and finance] pursuant to section one thousand ninety-six OF
THIS ARTICLE, or if no rate is set, at the rate of [six] SEVEN AND ONE-
HALF percent per annum shall be paid for the period from such last date
to the date paid, whether or not any extension of time for payment was
granted. Interest under this subsection shall not be paid if the amount
thereof is less than one dollar.
S. 57--B 153 A. 157--B
(j) Interest on erroneous refund.---Any portion of tax or other amount
which has been erroneously refunded, and which is recoverable by the
commissioner [of taxation and finance], shall bear interest at the
underpayment rate set by the commissioner pursuant to section one thou-
sand ninety-six OF THIS ARTICLE, or if no rate is set, at the rate of
[six] SEVEN AND ONE-HALF percent per annum from the date of the payment
of the refund, but only if it appears that any part of the refund was
induced by fraud or a misrepresentation of a material fact.
S 7. Paragraph 1 of subsection (c) of section 1085 of the tax law, as
amended by chapter 57 of the laws of 1993, is amended to read as
follows:
(1) If any taxpayer fails to file a declaration of estimated tax under
article nine-A OF THIS CHAPTER, or fails to pay all or any part of an
amount which is applied as an installment against such estimated tax, it
shall be deemed to have made an underpayment of estimated tax. There
shall be added to the tax for the taxable year an amount at the under-
payment rate set by the commissioner pursuant to section one thousand
ninety-six OF THIS ARTICLE, or if no rate is set, at the rate of [six]
SEVEN AND ONE-HALF percent per annum upon the amount of the underpayment
for the period of the underpayment but not beyond the fifteenth day of
the third month following the close of the taxable year. The amount of
the underpayment shall be, with respect to any installment of estimated
tax computed on the basis of the preceding year's tax, the excess of the
amount required to be paid over the amount, if any, paid on or before
the last day prescribed for such payment or, with respect to any other
installment of estimated tax, the excess of the amount of the install-
ment which would be required to be paid if the estimated tax were equal
to ninety-one percent of the tax shown on the return for the taxable
year (or if no return was filed, ninety-one percent of the tax for such
year) over the amount, if any, of the installment paid on or before the
last day prescribed for such payment. In any case in which there would
be no underpayment if "eighty percent" were substituted for "ninety-one
percent" each place it appears in this subsection, the addition to the
tax shall be equal to seventy-five percent of the amount otherwise
determined. No underpayment shall be deemed to exist with respect to a
declaration or installment otherwise due on or after the termination of
existence of the taxpayer.
S 8. Paragraph 1 of subsection (e) of section 1096 of the tax law, as
amended by section 3 of part M3 of chapter 62 of the laws of 2003, is
amended to read as follows:
(1) Authority to set interest rates.---The commissioner shall set the
overpayment and underpayment rates of interest to be paid pursuant to
sections two hundred thirteen, two hundred thirteen-b, two hundred
fifty-eight, two hundred sixty-three, two hundred ninety-four, one thou-
sand eighty-four, one thousand eighty-five, one thousand eighty-eight,
fourteen hundred sixty-one and fourteen hundred sixty-three OF THIS
CHAPTER, but if no such rate or rates of interest are set, such OVERPAY-
MENT rate [or rates] shall be deemed to be set at six percent per annum
AND SUCH UNDERPAYMENT RATE SHALL BE DEEMED TO BE SET AT SEVEN AND
ONE-HALF PERCENT PER ANNUM. Such overpayment and underpayment rates
shall be the rates prescribed in paragraph two of this subsection, but
the underpayment rate shall not be less than [six] SEVEN AND ONE-HALF
percent per annum. Any such rates set by the commissioner shall apply to
taxes, or any portion thereof, which remain or become due or overpaid on
or after the date on which such rates become effective and shall apply
only with respect to interest computed or computable for periods or
S. 57--B 154 A. 157--B
portions of periods occurring in the period during which such rates are
in effect.
S 9. Subparagraph (B) of paragraph 2 of subsection (e) of section 1096
of the tax law, as amended by section 11 of part R of chapter 85 of the
laws of 2002, is amended to read as follows:
(B) Underpayment rate. The underpayment rate set under this subsection
shall be the sum of (i) the federal short-term rate as provided under
paragraph three of this subsection, plus (ii) [five] SEVEN percentage
points.
S 10. Subdivision (d) of section 1139 of the tax law, as amended by
chapter 61 of the laws of 1989, is amended to read as follows:
(d) (1) Except in respect to an overpayment made on a return described
in paragraph [(ii)] TWO of subdivision (a) of section eleven hundred
thirty-six [hereof] OF THIS PART or on a return described in subdivision
(c) of section eleven hundred thirty-seven-A OF THIS PART, interest
shall be allowed and paid upon any refund made or credit allowed pursu-
ant to this section except as otherwise provided in PARAGRAPH TWO OF
THIS SUBDIVISION OR subdivision (e) of this section and except that no
interest shall be allowed or paid if the amount thereof would be less
than one dollar. Such interest shall be at the overpayment rate set by
the commissioner [of taxation and finance] pursuant to section eleven
hundred forty-two OF THIS PART, or if no rate is set, at the rate of six
[per cent] PERCENT per annum from the date when the tax, penalty or
interest refunded or credited was paid to a date preceding the date of
the refund check by not more than thirty days, provided, however, that
for the purposes of this subdivision any tax paid before the last day
prescribed for its payment shall be deemed to have been paid on such
last day. In the case of a REFUND OR CREDIT CLAIMED ON A return of tax
which is filed after the last date prescribed for filing such return
(determined with regard to extensions), OR CLAIMED ON AN APPLICATION FOR
REFUND OR CREDIT, no interest shall be allowed or paid for any day
before the date on which the return OR APPLICATION is filed. For
purposes of this subdivision, a return OR APPLICATION FOR REFUND OR
CREDIT shall not be treated as filed until it is filed in processible
form. A return OR APPLICATION is in a processible form if [such return]
IT is filed on a permitted form, and [such return] contains the taxpay-
er's name, address and identifying number and the required signatures,
and sufficient required information (whether on the return OR APPLICA-
TION or on required attachments) to permit the mathematical verification
of tax liability shown on the return OR REFUND OR CREDIT CLAIMED ON THE
APPLICATION.
(2) IF A REFUND IS MADE OR A CREDIT IS ALLOWED WITHIN THREE MONTHS
AFTER THE LAST DATE PRESCRIBED OR PERMITTED BY EXTENSION OF TIME FOR
FILING A RETURN ON WHICH THE REFUND OR CREDIT WAS CLAIMED OR WITHIN
THREE MONTHS AFTER THE RETURN WAS FILED, WHICHEVER IS LATER, OR WITHIN
THREE MONTHS AFTER AN APPLICATION FOR REFUND OR CREDIT IS FILED ON WHICH
THAT REFUND OR CREDIT WAS CLAIMED, NO INTEREST WILL BE ALLOWED OR PAID
ON THAT REFUND OR CREDIT.
S 11. Subdivision 9 of section 1142 of the tax law, as amended by
section 4 of part M3 of chapter 62 of the laws of 2003, is amended to
read as follows:
9. To set the overpayment and underpayment rates of interest for
purposes of sections eleven hundred thirty-nine and eleven hundred
forty-five OF THIS PART. Such rates shall be the overpayment and under-
payment rates of interest set pursuant to subsection (e) of section one
thousand ninety-six of this chapter, but the underpayment rate shall not
S. 57--B 155 A. 157--B
be less than [six] SEVEN AND ONE-HALF percent per annum. Any such rates
set by the commissioner shall apply to taxes, or any portion thereof,
which remain or become due or overpaid on or after the date on which
such rates become effective and shall apply only with respect to inter-
est computed or computable for periods or portions of periods occurring
in the period during which such rates are in effect. In computing the
amount of any interest required to be paid under this article by the
commissioner or by the taxpayer, or any other amount determined by
reference to such amount of interest, such interest and such amount
shall be compounded daily. The preceding sentence shall not apply for
purposes of computing the amount of any interest for failure to pay
estimated tax under subparagraph (iv) of paragraph one of subdivision
(a) of section [one thousand one] ELEVEN hundred forty-five of this
[article] PART.
S 12. Subparagraph (ii) of paragraph 1 and paragraph 2 of subdivision
(a) of section 1145 of the tax law, as amended by section 12 of part R
of chapter 85 of the laws of 2002, are amended to read as follows:
(ii) If any amount of tax is not paid on or before the last date
prescribed in this article for payment, interest on such amount at the
rate of fourteen AND ONE-HALF percent per annum or at the underpayment
rate set by the commissioner pursuant to section eleven hundred forty-
two OF THIS PART, whichever is greater, shall be paid for the period
from such last date to the date paid, whether or not any extension of
time for payment was granted. Interest under this subparagraph shall
not be paid if the amount thereof is less than one dollar.
(2) If the failure to pay or pay over any tax to the commissioner
within the time required by this article is due to fraud, in lieu of the
penalties and interest provided for in subparagraphs (i) and (ii) of
paragraph one of this subdivision, there shall be added to the tax (i) a
penalty of fifty percent of the amount of the tax due, plus (ii) inter-
est on such unpaid tax at the rate of fourteen AND ONE-HALF percent per
annum or the underpayment rate of interest set by the commissioner
pursuant to section eleven hundred forty-two OF THIS PART, whichever is
greater, for the period beginning on the last day prescribed by this
article for the payment of such tax (determined without regard to any
extension of time for paying) and ending on the day on which such tax is
paid, plus (iii) for the period beginning on the last day prescribed by
this article for the payment of such tax (determined without regard to
any extension of time for paying) and ending on the day the amount of
tax due is finally determined or, if earlier, on the day on which such
tax is paid, an amount equal to fifty percent of the interest payable
under subparagraph (ii) of this paragraph, on that portion of the unpaid
tax which is attributable to fraud.
S 13. Subdivision 6 of section 72-0201 of the environmental conserva-
tion law, as amended by section 14 of part R of chapter 85 of the laws
of 2002, is amended to read as follows:
6. In addition to any penalty that may be assessed pursuant to subdi-
vision five of this section, there shall be collected interest upon the
unpaid amount at the underpayment rate set by the commissioner of taxa-
tion and finance pursuant to section one thousand ninety-six of the tax
law, minus [two] FOUR percentage points. Such interest shall accrue
thirty days from the date prescribed for fee payment until payment is
actually made to the department.
S 14. Subparagraph (iii) of paragraph 2 of subsection (a) of section
1112 of the insurance law, as amended by section 15 of part R of chapter
85 of the laws of 2002, is amended to read as follows:
S. 57--B 156 A. 157--B
(iii) If any insurer fails to pay all or any part of the initial
payment or estimated payment due pursuant to subparagraph (i) or (ii) of
this paragraph, it shall be deemed to have made an underpayment. There
shall be added to the amount due pursuant to paragraph one of this
subsection, an amount at the rate set for underpayments by the commis-
sioner of taxation and finance pursuant to section one thousand ninety-
six of the tax law, minus [two] FOUR percentage points, or if no rate is
set, at the rate of six percent per annum upon the amount of the under-
payment for the period of the underpayment. In computing the amount of
any interest required to be paid, such interest shall not be compounded.
The amount of the underpayment shall be, with respect to the initial
payment or any estimated payment, the excess of the amount required to
be paid over the amount, if any, paid on or before the last day
prescribed for such payment. If the superintendent demands payment of
the initial payment or any estimated payment, and if such amount is paid
within ten days after the date of such demand, interest on the amount so
paid shall not be imposed for the period after the date of such demand.
No portion of the interest imposed pursuant to this subparagraph may be
waived.
S 15. Paragraph (a) of subsection 4 of section 9110 of the insurance
law, as amended by section 16 of part R of chapter 85 of the laws of
2002, is amended to read as follows:
(a) Interest. If any amount of tax is not paid on or before the date
prescribed for payment thereof in subsection two of this section, inter-
est on such amount of tax at the underpayment rate set by the commis-
sioner of taxation and finance pursuant to section one thousand ninety-
six of the tax law, plus [three] ONE percentage [points] POINT, shall be
paid to the superintendent for the period from the date prescribed for
payment until the date paid.
S 16. Paragraph (a) of subsection 4 of section 9111 of the insurance
law, as amended by section 17 of part R of chapter 85 of the laws of
2002, is amended to read as follows:
(a) Interest. If any amount of tax is not paid on or before the date
prescribed for payment thereof in subsection two of this section, inter-
est on such amount of tax at the underpayment rate set by the commis-
sioner of taxation and finance pursuant to section one thousand ninety-
six of the tax law, plus [three] ONE percentage [points] POINT, shall be
paid to the superintendent for the period from the date prescribed for
payment until the date paid.
S 17. Paragraph 1 of subsection (d) of section 9111-a of the insurance
law, as amended by section 18 of part R of chapter 85 of the laws of
2002, is amended to read as follows:
(1) Interest. If any amount of tax is not paid on or before the date
prescribed for payment thereof in paragraph two of this subsection,
interest on such amount of tax at the underpayment rate set by the
commissioner of taxation and finance pursuant to section one thousand
ninety-six of the tax law, plus [three] ONE percentage [points] POINT,
shall be paid to the superintendent for the period from the date
prescribed for payment until the date paid.
S 18. Paragraph 1 of subsection (d) of section 9111-b of the insurance
law, as amended by section 19 of part R of chapter 85 of the laws of
2002, is amended to read as follows:
(1) Interest. If any amount of tax is not paid on or before the date
prescribed for payment thereof in paragraph two of this subsection,
interest on such amount of tax at the underpayment rate set by the
commissioner of taxation and finance pursuant to section one thousand
S. 57--B 157 A. 157--B
ninety-six of the tax law, plus [three] ONE percentage [points] POINT,
shall be paid to the superintendent for the period from the date
prescribed for payment until the date paid.
S 19. Paragraph 1 of subsection (d) of section 9111-c of the insurance
law, as amended by section 20 of part R of chapter 85 of the laws of
2002, is amended to read as follows:
(1) Interest. If any amount of tax is not paid on or before the date
prescribed for payment thereof in paragraph two of this subsection,
interest on such amount of tax at the underpayment rate set by the
commissioner of taxation and finance pursuant to section one thousand
ninety-six of the tax law, plus [three] ONE percentage [points] POINT,
shall be paid to the superintendent for the period from the date
prescribed for payment until the date paid.
S 20. Subparagraph (i) of paragraph (a) of subdivision 3 of section 77
of the lien law, as amended by section 21 of part R of chapter 85 of the
laws of 2002, is amended to read as follows:
(i) Relief to compel an interim or final accounting by the trustee; to
identify and recover trust assets in the hands of any person together
with interest accrued thereon from the time of the diversion. Interest
shall be computed at the rate equal to the underpayment rate set by the
commissioner of taxation and finance pursuant to subsection (e) of
section one thousand ninety-six of the tax law, minus [two] FOUR
percentage points; to set aside as a diversion any unauthorized payment,
assignment or other transfer, whether voluntary or involuntary; to
enjoin a diversion; to recover damages for breach of trust or partic-
ipation therein;
S 21. Paragraph (a) of subdivision 8 of section 43.04 of the mental
hygiene law, as amended by section 22 of part R of chapter 85 of the
laws of 2002, is amended to read as follows:
(a) If an estimated payment made for a month to which an assessment
applies is less than ninety percent of the actual amount due for such
month, interest shall be due and payable to the commissioner of the
office of mental retardation and developmental disabilities on the
difference between the amount paid and the amount due from the day of
the month the estimated payment was due until the date of payment. The
rate of interest shall be twelve percent per annum or at the rate of
interest set by the commissioner of taxation and finance with respect to
underpayments of tax pursuant to subsection (e) of section one thousand
ninety-six of the tax law minus [two] FOUR percentage points. Interest
under this paragraph shall not be paid if the amount thereof is less
than one dollar. Interest, if not paid by the due date of the following
month's estimated payment, may be collected by the commissioner of the
office of mental retardation and developmental disabilities pursuant to
paragraph (c) of subdivision six of this section in the same manner as
an assessment pursuant to subdivision two of this section.
S 22. Paragraph (a) of subdivision 8 of section 43.06 of the mental
hygiene law, as amended by section 23 of part R of chapter 85 of the
laws of 2002, is amended to read as follows:
(a) If an estimated payment made for a month to which an assessment
applies is less than ninety percent of the actual amount due for such
month, interest shall be due and payable to the commissioner on the
difference between the amount paid and the amount due from the day of
the month the estimated payment was due until the date of payment. The
rate of interest shall be twelve percent per annum or at the rate of
interest set by the commissioner of taxation and finance with respect to
underpayments of tax pursuant to subsection (e) of section one thousand
S. 57--B 158 A. 157--B
ninety-six of the tax law minus [two] FOUR percentage points. Interest
under this paragraph shall not be paid if the amount thereof is less
than one dollar. Interest, if not paid by the due date of the following
month's estimated payment, may be collected by the commissioner pursuant
to paragraph (c) of subdivision six of this section in the same manner
as an assessment pursuant to subdivision two of this section.
S 23. Subparagraph (i) of paragraph (c) of subdivision 20 of section
2807-c of the public health law, as amended by section 24 of part R of
chapter 85 of the laws of 2002, is amended to read as follows:
(i) Interest shall be due and payable to the commissioner by a general
hospital or by a payor paying directly to a pool on the difference
between the amount paid to a pool and the amount due to such pool by the
hospital or payor from the day of the month the payment was due until
the date of payment. The rate of interest shall be twelve percent per
annum or at the rate of interest set by the commissioner of taxation and
finance with respect to underpayments of tax pursuant to subsection (e)
of section one thousand ninety-six of the tax law minus [two] FOUR
percentage points. Interest under this paragraph shall not be paid if
the amount thereof is less than one dollar. Interest may be collected by
the commissioner in the same manner as an arrearage pursuant to this
subdivision.
S 24. Paragraph (a) of subdivision 8 of section 2807-d of the public
health law, as amended by section 25 of part R of chapter 85 of the laws
of 2002, is amended to read as follows:
(a) If an estimated payment made for a month to which an assessment
applies is less than ninety percent of the actual amount due for such
month, interest shall be due and payable to the commissioner on the
difference between the amount paid and the amount due from the day of
the month the estimated payment was due until the date of payment. The
rate of interest shall be twelve percent per annum or at the rate of
interest set by the commissioner of taxation and finance with respect to
underpayments of tax pursuant to subsection (e) of section one thousand
ninety-six of the tax law minus [two] FOUR percentage points. Interest
under this paragraph shall not be paid if the amount thereof is less
than one dollar. Interest, if not paid by the due date of the following
month's estimated payment, may be collected by the commissioner pursuant
to paragraph (c) of subdivision six of this section in the same manner
as an assessment pursuant to subdivision two of this section.
S 25. Subparagraph (i) of paragraph (c) of subdivision 4 of section
2807-f of the public health law, as amended by section 26 of part R of
chapter 85 of the laws of 2002, is amended to read as follows:
(i) If a payment made for a month to which a payment factor applies is
less than ninety percent of the actual amount due for such month, inter-
est shall be due and payable to the commissioner by a health maintenance
organization on the difference between the amount paid and the amount
due from the day of the month the payment was due until the date of
payment. The rate of interest shall be twelve percent per annum or, if
greater, at the rate of interest set by the commissioner of taxation and
finance with respect to underpayments of tax pursuant to subsection (e)
of section one thousand ninety-six of the tax law minus [two] FOUR
percentage points. Interest under this paragraph shall not be paid if
the amount thereof is less than one dollar.
S 26. Paragraph (a) of subdivision 8 of section 2807-j of the public
health law, as amended by section 27 of part R of chapter 85 of the laws
of 2002, is amended to read as follows:
S. 57--B 159 A. 157--B
(a) If a payment made pursuant to this section or to section twenty-
eight hundred seven-s or twenty-eight hundred seven-t of this article
for a month to which an allowance applies is less than ninety percent of
the amount due or which the commissioner estimates, based on available
financial and statistical data, is due for such month, interest shall be
due and payable to the commissioner by a designated provider of
services, or by a third-party payor, other than a state governmental
agency, that has elected to pay an allowance directly, on the difference
between the amount paid and the amount due or estimated to be due from
the day of the month the payment was due until the date of payment. The
rate of interest shall be twelve percent per annum or, if greater, at
the rate of interest set by the commissioner of taxation and finance
with respect to underpayments of tax pursuant to subsection (e) of
section one thousand ninety-six of the tax law minus [two] FOUR percent-
age points. Interest under this paragraph shall not be paid if the
amount thereof is less than one dollar. Interest due from a designated
provider of services, if not paid by the due date of the following
month's payment, may be collected by the commissioner pursuant to para-
graph (c) of subdivision six of this section in the same manner as an
allowance pursuant to subdivision two of this section.
S 27. Paragraph (a) of subdivision 8 of section 3614-a of the public
health law, as amended by section 28 of part R of chapter 85 of the laws
of 2002, is amended to read as follows:
(a) If an estimated payment made for a month to which an assessment
applies is less than ninety percent of the actual amount due for such
month, interest shall be due and payable to the commissioner on the
difference between the amount paid and the amount due from the day of
the month the estimated payment was due until the date of payment. The
rate of interest shall be twelve percent per annum or at the rate of
interest set by the commissioner of taxation and finance with respect to
underpayments of tax pursuant to subsection (e) of section one thousand
ninety-six of the tax law minus [two] FOUR percentage points. Interest
under this paragraph shall not be paid if the amount thereof is less
than one dollar. Interest, if not paid by the due date of the following
month's estimated payment, may be collected by the commissioner pursuant
to paragraph (c) of subdivision six of this section in the same manner
as an assessment pursuant to subdivision two of this section.
S 28. Paragraph (a) of subdivision 8 of section 3614-b of the public
health law, as amended by section 29 of part R of chapter 85 of the laws
of 2002, is amended to read as follows:
(a) If an estimated payment made for a month to which assessment
applies is less than ninety percent of the actual amount due for such
month, interest shall be due and payable to the commissioner on the
difference between the amount paid and the amount due from the day of
the month the estimated payment was due until the date of the payment.
The rate of interest shall be twelve percent per annum or at the rate of
interest set by the commissioner of taxation and finance with respect to
underpayment of tax pursuant to subsection (e) of section one thousand
ninety-six of the tax law minus [two] FOUR percentage points. Interest
under this paragraph shall not be paid if the amount thereof is less
than one dollar. Interest, if not paid by the due date of the following
month's estimated payment, may be collected by the commissioner pursuant
to paragraph (c) of subdivision six of this section in the same manner
as an assessment pursuant to subdivision two of this section.
S. 57--B 160 A. 157--B
S 29. Paragraph (a) of subdivision 7 of section 367-i of the social
services law, as amended by section 32 of part R of chapter 85 of the
laws of 2002, is amended to read as follows:
(a) If an estimated payment made for a month to which an assessment
applies is less than ninety percent of the actual amount due for such
month, interest shall be due and payable to the commissioner of health
on the difference between the amount paid and the amount due from the
day of the month the estimated payment was due until the date of
payment. The rate of interest shall be twelve percent per annum or at
the rate of interest set by the commissioner of taxation and finance
with respect to underpayments of tax pursuant to subsection (e) of
section one thousand ninety-six of the tax law minus [two] FOUR percent-
age points. Interest under this paragraph shall not be paid if the
amount thereof is less than one dollar. Interest, if not paid by the due
date of the following month's estimated payment, may be collected by the
commissioner of health pursuant to paragraph (c) of subdivision five of
this section in the same manner as an assessment pursuant to subdivision
two of this section.
S 30. Subdivision 4 of section 18 of the state finance law, as amended
by section 33 of part R of chapter 85 of the laws of 2002, is amended to
read as follows:
4. Unless provided otherwise by contract, statute or regulation, a
debtor that fails to make payment of a debt within the period set forth
in subdivision three of this section shall pay, in addition to the
amount of debt, the greater of: (a) interest on the outstanding balance
of the debt, accruing on the date on which the receipt of the first
billing invoice or first notice occurs, computed at the underpayment
rate which is in effect on the date which the receipt of the first bill-
ing invoice or first billing notice occurs; or (b) a late payment charge
of ten dollars. For the purposes of this section, the underpayment rate
shall be that rate set by the commissioner of taxation and finance and
published in the state register pursuant to subsection (e) of section
one thousand ninety-six of the tax law minus [two] FOUR percentage
points. With respect to specific classes of debt collected by a state
agency, the director of the budget or official of a state agency so
designated by the director of the budget may approve the assessment of
interest or late payment charges at a date later than the thirtieth day
following such debtor's receipt of any billing invoice or notice sent by
the state agency.
S 31. Subdivisions (a) and (j) of section 11-1784 of the administra-
tive code of the city of New York, as amended by section 34 of part R of
chapter 85 of the laws of 2002, are amended to read as follows:
(a) General. If any amount of income tax is not paid on or before the
last date prescribed in this chapter for payment, interest on such
amount at the underpayment rate set by the commissioner of taxation and
finance pursuant to section 11-1797 OF THIS SUBCHAPTER, or if no rate is
set, at the rate of [six] SEVEN AND ONE-HALF percent per annum shall be
paid for the period from such last date to the date paid, whether or not
any extension of time for payment was granted. Interest under this
subdivision shall not be paid if the amount thereof is less than one
dollar. If the time for filing of a return of tax withheld by an employ-
er is extended, the employer shall pay interest for the period for which
the extension is granted and may not charge such interest to the employ-
ee.
(j) Interest on erroneous refund. Any portion of tax or other amount
which has been erroneously refunded, and which is recoverable by the
S. 57--B 161 A. 157--B
commissioner of taxation and finance, shall bear interest at the under-
payment rate set by such commissioner pursuant to section 11-1797 OF
THIS SUBCHAPTER, or if no rate is set, at the rate of [six] SEVEN AND
ONE-HALF percent per annum from the date of the payment of the refund,
but only if it appears that any part of the refund was induced by fraud
or a misrepresentation of a material fact.
S 32. Paragraph 1 of subdivision (c) of section 11-1785 of the admin-
istrative code of the city of New York, as amended by section 35 of part
R of chapter 85 of the laws of 2002, is amended to read as follows:
(1) Addition to the tax. Except as otherwise provided in this subdivi-
sion and subdivision (d) OF THIS SECTION, in the case of any underpay-
ment of estimated tax by an individual, there shall be added to the tax
under this chapter for the taxable year an amount determined by applying
the underpayment rate established under section 11-1797 OF THIS SUBCHAP-
TER, or if no rate is set, at the rate of [six] SEVEN AND ONE-HALF
percent per annum, to the amount of the underpayment for the period of
the underpayment. Such period shall run from the due date for the
required installment to the earlier of the fifteenth day of the fourth
month following the close of the taxable year or, with respect to any
portion of the underpayment, the date on which such portion is paid. For
purposes of determining such date, a payment of estimated tax shall be
credited against unpaid required installments in the order in which such
installments are required to be paid. There shall be four required
installments for each taxable year, due on April fifteenth, June
fifteenth and September fifteenth of such taxable year and on January
fifteenth of the following taxable year.
S 33. Paragraph 1 of subdivision (j) of section 11-1797 of the admin-
istrative code of the city of New York, as amended by section 5 of part
M3 of chapter 62 of the laws of 2003, is amended to read as follows:
(1) Authority to set interest rates. The commissioner of taxation and
finance shall set the overpayment and underpayment rates of interest to
be paid pursuant to sections 11-1784, 11-1785 and 11-1788 OF THIS
SUBCHAPTER, but if no such rates of interest are set, such [rates] OVER-
PAYMENT RATE shall be deemed to be set at six percent per annum AND THE
UNDERPAYMENT RATE SHALL BE DEEMED TO BE SET AT SEVEN AND ONE-HALF
PERCENT PER ANNUM. Such rates shall be the rates prescribed by para-
graphs two and four of this subdivision, but the underpayment rate shall
not be less than [six] SEVEN AND ONE-HALF percent per annum. Any such
rates set by such commissioner shall apply to taxes, or any portion
thereof, which remain or become due or overpaid on or after the date on
which such rates become effective and shall apply only with respect to
interest computed or computable for periods or portions of periods
occurring in the period during which such rates are in effect.
S 34. Subparagraph (B) of paragraph 2 of subdivision (j) of section
11-1797 of the administrative code of the city of New York, as amended
by section 37 of part R of chapter 85 of the laws of 2002, is amended to
read as follows:
(B) Underpayment rate. The underpayment rate of interest set under
this subdivision shall be the sum of (i) the federal short-term rate as
provided under paragraph three of this subdivision, plus (ii) [four]
FIVE AND ONE-HALF percentage points.
S 35. This act shall take effect immediately, and shall apply to the
interest chargeable or due on taxes or on any other amounts, or any
portion thereof, that remain or become due or overpaid on that day,
except that:
S. 57--B 162 A. 157--B
(a) Section ten of this act shall take effect on June 1, 2009, and
shall apply to refunds or credits claimed on returns or applications for
refund or credit filed on or after that date;
(b) Provided, however, that the amendments to paragraph (a) of subdi-
vision 8 of section 2807-j of the public health law made by section
twenty-six of this act shall not affect the expiration of such section
and shall be deemed to expire therewith; and
(c) Notwithstanding any other provision of law, for the calendar quar-
ter in which this act becomes a law, the department of taxation and
finance may provide appropriate general notice of the new interest rates
for that calendar quarter within twenty days after the date this act has
become a law, without needing to have notice of the rates published in
advance in the State Register, and shall cause such a notice to be
published in the State Register as soon as is practicable.
SUBPART E
Section 1. Subparagraph (A) of paragraph 4 of subsection (a) of
section 674 of the tax law, as amended by chapter 477 of the laws of
1998, is amended to read as follows:
(A) All employers described in paragraph one of subsection (a) of
section six hundred seventy-one of this part, including those whose
wages paid are not sufficient to require the withholding of tax from the
wages of any of their employees, all employers required to provide the
wage reporting information for the employees described in subdivision
one of section one hundred seventy-one-a of this chapter, and all
employers liable for unemployment insurance contributions or for
payments in lieu of such contributions pursuant to article eighteen of
the labor law, shall file a quarterly combined withholding, wage report-
ing and unemployment insurance return detailing the preceding calendar
quarter's withholding tax transactions, such quarter's wage reporting
information, such quarter's unemployment insurance contributions, and
such other related information as the commissioner of taxation and
finance or the commissioner of labor, as applicable, may prescribe. In
addition, the return covering the last calendar quarter of each year
shall also include withholding reconciliation information for such
calendar year. Such returns shall be filed no later than the last day of
the month following the last day of each calendar quarter[; provided,
however, that an employer may provide the wage reporting information
covering the last calendar quarter of each year, and the withholding
reconciliation information for such year no later than February twenty-
eighth of the succeeding year].
S 2. This act shall take effect immediately.
SUBPART F
Section 1. Section 702 of the county law is amended by adding a new
subdivision 7 to read as follows:
7. NOTWITHSTANDING ANY PROVISION OF LAW WITH RESPECT TO THE REQUIRE-
MENTS OF RESIDENCE, A DISTRICT ATTORNEY MAY APPOINT ONE OR MORE ATTOR-
NEYS EMPLOYED BY THE DEPARTMENT OF TAXATION AND FINANCE AS SPECIAL
ASSISTANT DISTRICT ATTORNEYS WITH RESPECT TO ANY INVESTIGATION OR PROSE-
CUTION CONCERNING, IN WHOLE OR PART, A VIOLATION OF ARTICLE THIRTY-SEVEN
OF THE TAX LAW OR OF THE PENAL LAW AS IT APPLIES TO THE ENFORCEMENT OF
ANY PROVISION OF THE TAX LAW.
S 2. This act shall take effect immediately.
S. 57--B 163 A. 157--B
SUBPART G
Section 1. Section 1136 of the tax law is amended by adding a new
subdivision (i) to read as follows:
(I) (1) THE FOLLOWING PERSONS MUST FILE, IN ADDITION TO ANY OTHER
RETURN REQUIRED BY THIS CHAPTER, ANNUAL INFORMATION RETURNS WITH THE
COMMISSIONER PROVIDING THE INFORMATION SPECIFIED BELOW ABOUT THEIR TRAN-
SACTIONS WITH VENDORS, HOTEL OPERATORS, AND RECIPIENTS OF AMUSEMENT
CHARGES:
(A) EVERY INSURER LICENSED TO ISSUE MOTOR VEHICLE PHYSICAL DAMAGE OR
MOTOR VEHICLE PROPERTY DAMAGE LIABILITY INSURANCE FOR MOTOR VEHICLES
REGISTERED IN THIS STATE IF, DURING THE PERIOD COVERED BY THE RETURN, IT
HAS PAID CONSIDERATION OR AN AMOUNT UNDER AN INSURANCE CONTRACT FOR THE
SERVICING OR REPAIR OF A MOTOR VEHICLE ON BEHALF OF AN INSURED. FOR EACH
PERSON TO WHOM THE INSURER HAS PAID THE CONSIDERATION OR AMOUNT
DESCRIBED IN THE PRECEDING SENTENCE, THE RETURN MUST REPORT THE TOTAL
AMOUNT PAID FOR THAT PERIOD, ALONG WITH THE OTHER INFORMATION REQUIRED
BY PARAGRAPH TWO OF THIS SUBDIVISION.
(B) EVERY FRANCHISOR, AS DEFINED BY SECTION SIX HUNDRED EIGHTY-ONE OF
THE GENERAL BUSINESS LAW, THAT HAS AT LEAST ONE FRANCHISEE, AS DEFINED
BY SUBDIVISION FOUR OF SECTION SIX HUNDRED EIGHTY-ONE OF THE GENERAL
BUSINESS LAW, THAT IS REQUIRED TO BE REGISTERED UNDER SECTION ELEVEN
HUNDRED THIRTY-FOUR OF THIS PART. FOR EACH FRANCHISEE, THE RETURN MUST
INCLUDE THE GROSS SALES OF THE FRANCHISEE IN THIS STATE REPORTED BY THE
FRANCHISEE TO THE FRANCHISOR, THE TOTAL AMOUNT OF SALES BY THE FRANCHI-
SOR TO THE FRANCHISEE, AND ANY INCOME REPORTED TO THE FRANCHISOR BY EACH
FRANCHISEE, ALONG WITH THE INFORMATION REQUIRED BY PARAGRAPH TWO OF THIS
SUBDIVISION.
(C) EVERY WHOLESALER, AS DEFINED BY SECTION THREE OF THE ALCOHOLIC
BEVERAGE CONTROL LAW, IF IT HAS MADE A SALE OF AN ALCOHOLIC BEVERAGE, AS
DEFINED BY SECTION FOUR HUNDRED TWENTY OF THIS CHAPTER, WITHOUT COLLECT-
ING SALES OR USE TAX DURING THE PERIOD COVERED BY THE RETURN, EXCEPT (I)
A SALE TO A PERSON THAT HAS FURNISHED AN EXEMPT ORGANIZATION CERTIFICATE
TO THE WHOLESALER FOR THAT SALE; OR (II) A SALE TO ANOTHER WHOLESALER
WHOSE LICENSE UNDER THE ALCOHOLIC BEVERAGE CONTROL LAW DOES NOT ALLOW IT
TO MAKE RETAIL SALES OF THE ALCOHOLIC BEVERAGE. FOR EACH VENDOR, OPERA-
TOR, OR RECIPIENT TO WHOM THE WHOLESALER HAS MADE A SALE WITHOUT
COLLECTING SALES OR COMPENSATING USE TAX, THE RETURN MUST INCLUDE THE
TOTAL VALUE OF THOSE SALES MADE DURING THE PERIOD COVERED BY THE RETURN
(EXCEPTING THE SALES DESCRIBED IN CLAUSES (I) AND (II) OF THIS SUBPARA-
GRAPH) AND THE VENDOR'S, OPERATOR'S OR RECIPIENT'S STATE LIQUOR AUTHORI-
TY LICENSE NUMBER, ALONG WITH THE INFORMATION REQUIRED BY PARAGRAPH TWO
OF THIS SUBDIVISION.
(2) THE RETURNS REQUIRED BY PARAGRAPH ONE OF THIS SUBDIVISION MUST
ALSO INCLUDE, FOR EACH VENDOR, OPERATOR, OR RECIPIENT ABOUT WHOM INFOR-
MATION IS REQUIRED TO BE REPORTED UNDER SUCH PARAGRAPH, THE NAME AND
ADDRESS, AND THE CERTIFICATE OF AUTHORITY OR FEDERAL IDENTIFICATION
NUMBER, AND ANY OTHER INFORMATION REQUIRED BY THE COMMISSIONER. THE
COMMISSIONER MAY, IN THE COMMISSIONER'S DISCRETION, REQUIRE THE REPORT-
ING OF LESS THAN ALL THE INFORMATION OTHERWISE REQUIRED TO BE REPORTED
BY THIS PARAGRAPH AND PARAGRAPH ONE OF THIS SUBDIVISION.
(3) THE RETURNS REQUIRED BY PARAGRAPH ONE OF THIS SUBDIVISION MUST BE
FILED ANNUALLY ON OR BEFORE MARCH TWENTIETH AND MUST COVER THE FOUR
SALES TAX QUARTERLY PERIODS IMMEDIATELY PRECEDING SUCH DATE. NOTWITH-
STANDING SECTION THREE HUNDRED FIVE OF THE STATE TECHNOLOGY LAW OR ANY
S. 57--B 164 A. 157--B
OTHER LAW TO THE CONTRARY, THE RETURNS MUST BE FILED ELECTRONICALLY IN
THE MANNER PRESCRIBED BY THE COMMISSIONER.
(4) ANY PERSON REQUIRED TO FILE A RETURN UNDER PARAGRAPH ONE OF THIS
SUBDIVISION MUST, ON OR BEFORE MARCH TWENTIETH, GIVE TO EACH VENDOR,
OPERATOR, OR RECIPIENT ABOUT WHOM INFORMATION IS REQUIRED TO BE REPORTED
IN THE RETURN THE INFORMATION PERTAINING TO THAT PERSON. THE COMMISSION-
ER MAY PRESCRIBE A FORM TO BE USED TO PROVIDE THE INFORMATION REQUIRED
TO BE GIVEN BY THIS PARAGRAPH.
(5) NOTHING IN THIS SUBDIVISION IS TO BE CONSTRUED TO LIMIT THE
PERSONS FROM WHOM THE COMMISSIONER CAN SECURE INFORMATION OR THE INFOR-
MATION THE COMMISSIONER CAN REQUIRE FROM THOSE PERSONS PURSUANT TO THE
COMMISSIONER'S AUTHORITY UNDER SECTION ELEVEN HUNDRED FORTY-THREE OF
THIS PART OR ANY OTHER PROVISION OF LAW.
S 2. Section 1145 of the tax law is amended by adding a new subdivi-
sion (i) to read as follows:
(I)(1) EVERY PERSON REQUIRED TO FILE AN INFORMATION RETURN BY SUBDIVI-
SION (I) OF SECTION ELEVEN HUNDRED THIRTY-SIX OF THIS PART WHO (A) FAILS
TO PROVIDE ANY OF THE INFORMATION REQUIRED BY PARAGRAPH ONE OR TWO OF
SUBDIVISION (I) OF SECTION ELEVEN HUNDRED THIRTY-SIX OF THIS PART FOR A
VENDOR, OPERATOR, OR RECIPIENT, OR WHO FAILS TO INCLUDE ANY SUCH INFOR-
MATION THAT IS TRUE AND CORRECT (WHETHER OR NOT SUCH A REPORT IS FILED)
FOR A VENDOR, OPERATOR, OR RECIPIENT, OR (B) FAILS TO PROVIDE THE INFOR-
MATION REQUIRED BY PARAGRAPH FOUR OF SUBDIVISION (I) OF SECTION ELEVEN
HUNDRED THIRTY-SIX OF THIS PART TO A VENDOR, OPERATOR, OR RECIPIENT
SPECIFIED IN PARAGRAPH FOUR OF SUBDIVISION (I) OF SECTION ELEVEN HUNDRED
THIRTY-SIX OF THIS PART, WILL, IN ADDITION TO ANY OTHER PENALTY PROVIDED
IN THIS ARTICLE OR OTHERWISE IMPOSED BY LAW, BE SUBJECT TO A PENALTY OF
FIVE HUNDRED DOLLARS FOR TEN OR FEWER FAILURES, AND UP TO FIFTY DOLLARS
FOR EACH ADDITIONAL FAILURE.
(2) EVERY PERSON FAILING TO FILE AN INFORMATION RETURN REQUIRED BY
SUBDIVISION (I) OF SECTION ELEVEN HUNDRED THIRTY-SIX OF THIS PART WITHIN
THE TIME REQUIRED BY SUBDIVISION (I) OF SECTION ELEVEN HUNDRED
THIRTY-SIX OF THIS PART WILL, IN ADDITION TO ANY OTHER PENALTY PROVIDED
FOR IN THIS ARTICLE OR OTHERWISE IMPOSED BY LAW, BE SUBJECT TO A PENALTY
IN AN AMOUNT NOT TO EXCEED TWO THOUSAND DOLLARS FOR EACH SUCH FAILURE,
PROVIDED THAT THE MINIMUM PENALTY UNDER THIS PARAGRAPH IS FIVE HUNDRED
DOLLARS.
(3) IN NO EVENT WILL THE PENALTY IMPOSED BY PARAGRAPH ONE, OR THE
AGGREGATE OF THE PENALTIES IMPOSED UNDER PARAGRAPHS ONE AND TWO OF THIS
SUBDIVISION, EXCEED TEN THOUSAND DOLLARS FOR ANY ANNUAL FILING PERIOD AS
DESCRIBED BY PARAGRAPH THREE OF SUBDIVISION (I) OF SECTION ELEVEN
HUNDRED THIRTY-SIX OF THIS PART.
(4) IF THE COMMISSIONER DETERMINES THAT ANY OF THE FAILURES THAT ARE
SUBJECT TO PENALTY UNDER THIS SUBDIVISION WAS ENTIRELY DUE TO REASONABLE
CAUSE AND NOT DUE TO WILLFUL NEGLECT, THE COMMISSIONER MUST REMIT THE
PENALTY IMPOSED UNDER THIS SUBDIVISION. THESE PENALTIES WILL BE DETER-
MINED, ASSESSED, COLLECTED, PAID, DISPOSED OF AND ENFORCED IN THE SAME
MANNER AS TAXES IMPOSED BY THIS ARTICLE AND ALL THE PROVISIONS OF THIS
ARTICLE RELATING THERETO WILL BE DEEMED ALSO TO REFER TO THESE PENAL-
TIES.
S 3. This act shall take effect immediately, provided that the first
return required by subdivision (i) of section 1136 of the tax law, as
added by section one of this act, shall be due on or before September
20, 2009 and shall cover the period March 1, 2009 through August 31,
2009; provided, further, that the returns required to be filed by such
S. 57--B 165 A. 157--B
subdivision on or before March 20, 2010, shall cover the period from
September 1, 2009 to February 28, 2010.
SUBPART H
Section 1. Subdivision 4 of section 1700 of the tax law, as added by
section 1 of part CC1 of chapter 57 of the laws of 2008, is amended to
read as follows:
4. To participate in the voluntary disclosure and compliance program,
an eligible taxpayer must apply by submitting a disclosure statement in
the form and manner prescribed by the commissioner. The disclosure
statement shall contain all the information the commissioner reasonably
deems necessary to effectively administer the program. As long as all
the requirements of the voluntary disclosure and compliance program are
met, no application shall be denied solely because the taxpayer has
admitted that the delinquency was the result of willful or fraudulent
conduct. Except in instances where the taxpayer has failed to comply
with the terms of a voluntary disclosure and compliance agreement, the
commissioner shall not use the taxpayer's disclosure as evidence in any
proceeding brought against the taxpayer or reveal the contents of the
disclosure to any law enforcement or other agency. HOWEVER, THE DISCLO-
SURE OF ANY RETURNS OR REPORTS FILED UNDER THIS PROGRAM WITH THE SECRE-
TARY OF THE TREASURY OF THE UNITED STATES, HIS OR HER DELEGATES, OR THE
PROPER TAX OFFICER OF ANY STATE OR CITY IS PERMITTED AS OTHERWISE
PROVIDED FOR IN THIS CHAPTER.
S 2. This act shall take effect immediately.
SUBPART I
Section 1. Subdivision 4 of section 20.40 of the criminal procedure
law is amended by adding a new paragraph (m) to read as follows:
(M) AN OFFENSE UNDER THE TAX LAW OR THE PENAL LAW OF FILING A FALSE OR
FRAUDULENT RETURN, REPORT, DOCUMENT, DECLARATION, STATEMENT, OR FILING,
OR OF TAX EVASION, FRAUD, OR LARCENY RESULTING FROM THE FILING OF A
FALSE OR FRAUDULENT RETURN, REPORT, DOCUMENT, DECLARATION, OR FILING IN
CONNECTION WITH THE PAYMENT OF TAXES TO THE STATE OR A POLITICAL SUBDI-
VISION OF THE STATE, MAY BE PROSECUTED IN ANY COUNTY IN WHICH AN UNDER-
LYING TRANSACTION REFLECTED, REPORTED OR REQUIRED TO BE REFLECTED OR
REPORTED, IN WHOLE OR PART, ON SUCH RETURN, REPORT, DOCUMENT, DECLARA-
TION, STATEMENT, OR FILING OCCURRED.
S 2. Subdivision 1 of section 470.05 of the penal law, as added by
chapter 489 of the laws of 2000, is amended to read as follows:
1. Knowing that the property involved in one or more financial trans-
actions represents the proceeds of criminal conduct:
(a) he or she conducts one or more such financial transactions which
in fact involve the proceeds of specified criminal conduct:
(i) With intent to:
(A) promote the carrying on of criminal conduct; or
(B) engage in conduct constituting a felony as set forth in section
[eighteen hundred two,] eighteen hundred three, eighteen hundred four,
eighteen hundred five, [eighteen hundred seven or eighteen hundred
eight] OR EIGHTEEN HUNDRED SIX of the tax law; or
(ii) Knowing that the transaction or transactions in whole or in part
are designed to:
(A) conceal or disguise the nature, the location, the source, the
ownership or the control of the proceeds of criminal conduct; or
S. 57--B 166 A. 157--B
(B) avoid any transaction reporting requirement imposed by law; and
(b) The total value of the property involved in such financial trans-
action or transactions exceeds five thousand dollars; or
S 3. Subdivision 1 of section 470.10 of the penal law, as added by
chapter 489 of the laws of 2000, is amended to read as follows:
1. Knowing that the property involved in one or more financial trans-
actions represents:
(a) the proceeds of the criminal sale of a controlled substance, he or
she conducts one or more such financial transactions which in fact
involve the proceeds of the criminal sale of a controlled substance:
(i) With intent to:
(A) promote the carrying on of specified criminal conduct; or
(B) engage in conduct constituting a felony as set forth in section
[eighteen hundred two,] eighteen hundred three, eighteen hundred four,
eighteen hundred five, [eighteen hundred seven or eighteen hundred
eight] OR EIGHTEEN HUNDRED SIX of the tax law; or
(ii) Knowing that the transaction or transactions in whole or in part
are designed to:
(A) conceal or disguise the nature, the location, the source, the
ownership or the control of the proceeds of specified criminal conduct;
or
(B) avoid any transaction reporting requirement imposed by law; and
(iii) The total value of the property involved in such financial tran-
saction or transactions exceeds ten thousand dollars; or
(b) the proceeds of criminal conduct, he or she conducts one or more
such financial transactions which in fact involve the proceeds of speci-
fied criminal conduct:
(i) With intent to:
(A) promote the carrying on of criminal conduct; or
(B) engage in conduct constituting a felony as set forth in section
[eighteen hundred two,] eighteen hundred three, eighteen hundred four,
eighteen hundred five, [eighteen hundred seven or eighteen hundred
eight] OR EIGHTEEN HUNDRED SIX of the tax law; or
(ii) knowing that the transaction or transactions in whole or in part
are designed to:
(A) conceal or disguise the nature, the location, the source, the
ownership or the control of the proceeds of criminal conduct; or
(B) avoid any transaction reporting requirement imposed by law; and
(iii) The total value of the property involved in such financial tran-
saction or transactions exceeds fifty thousand dollars; or
S 4. Subdivision 1 of section 470.15 of the penal law, as added by
chapter 489 of the laws of 2000, is amended to read as follows:
1. Knowing that the property involved in one or more financial trans-
actions represents:
(a) the proceeds of the criminal sale of a controlled substance, he or
she conducts one or more such financial transactions which in fact
involve the proceeds of the criminal sale of a controlled substance:
(i) With intent to:
(A) promote the carrying on of specified criminal conduct; or
(B) engage in conduct constituting a felony as set forth in section
[eighteen hundred two,] eighteen hundred three, eighteen hundred four,
eighteen hundred five, [eighteen hundred seven or eighteen hundred
eight] OR EIGHTEEN HUNDRED SIX of the tax law; or
(ii) Knowing that the transaction or transactions in whole or in part
are designed to:
S. 57--B 167 A. 157--B
(A) conceal or disguise the nature, the location, the source, the
ownership or the control of the proceeds of specified criminal conduct;
or
(B) avoid any transaction reporting requirement imposed by law; and
(iii) The total value of the property involved in such financial tran-
saction or transactions exceeds fifty thousand dollars; or
(b) the proceeds of specified criminal conduct, he or she conducts one
or more such financial transactions which in fact involve the proceeds
of specified criminal conduct:
(i) With intent to:
(A) promote the carrying on of specified criminal conduct; or
(B) engage in conduct constituting a felony as set forth in section
[eighteen hundred two,] eighteen hundred three, eighteen hundred four,
eighteen hundred five, [eighteen hundred seven or eighteen hundred
eight] OR EIGHTEEN HUNDRED SIX of the tax law; or
(ii) Knowing that the transaction or transactions in whole or in part
are designed to:
(A) conceal or disguise the nature, the location, the source, the
ownership or the control of the proceeds of specified criminal conduct;
or
(B) avoid any transaction reporting requirement imposed by law; and
(iii) The total value of the property involved in such financial tran-
saction or transactions exceeds one hundred thousand dollars; or
S 5. Subdivision 1 of section 470.20 of the penal law, as added by
chapter 489 of the laws of 2000, is amended to read as follows:
1. Knowing that the property involved in one or more financial trans-
actions represents:
(a) the proceeds of the criminal sale of a controlled substance, he or
she conducts one or more such financial transactions which in fact
involve the proceeds of the criminal sale of a controlled substance:
(i) With intent to:
(A) promote the carrying on of specified criminal conduct; or
(B) engage in conduct constituting a felony as set forth in section
[eighteen hundred two,] eighteen hundred three, eighteen hundred four,
eighteen hundred five, [eighteen hundred seven or eighteen hundred
eight] OR EIGHTEEN HUNDRED SIX of the tax law; or
(ii) Knowing that the transaction or transactions in whole or in part
are designed to:
(A) conceal or disguise the nature, the location, the source, the
ownership or the control of the proceeds of specified criminal conduct;
or
(B) avoid any transaction reporting requirement imposed by law; and
(iii) The total value of the property involved in such financial tran-
saction or transactions exceeds five hundred thousand dollars; or
(b) the proceeds of a class A, B or C felony, or of a crime in any
other jurisdiction that is or would be a class A, B or C felony under
the laws of this state, he or she conducts one or more such financial
transactions which in fact involve the proceeds of any such felony:
(i) With intent to:
(A) promote the carrying on of specified criminal conduct; or
(B) engage in conduct constituting a felony as set forth in section
[eighteen hundred two,] eighteen hundred three, eighteen hundred four,
eighteen hundred five, [eighteen hundred seven or eighteen hundred
eight] EIGHTEEN HUNDRED SIX of the tax law; or
(ii) Knowing that the transaction or transactions in whole or in part
are designed to:
S. 57--B 168 A. 157--B
(A) conceal or disguise the nature, the location, the source, the
ownership or the control of the proceeds of specified criminal conduct;
or
(B) avoid any transaction reporting requirement imposed by law; and
(iii) The total value of the property involved in such financial tran-
saction or transactions exceeds one million dollars.
S 6. Subdivision 1 of section 470.21 of the penal law, as added by
section 18 of part A of chapter 1 of the laws of 2004, is amended to
read as follows:
1. Knowing that the property involved in one or more financial trans-
actions represents either the proceeds of an act of terrorism as defined
in subdivision one of section 490.05 of this part, or a monetary instru-
ment given, received or intended to be used to support a violation of
article four hundred ninety of this part:
(a) he or she conducts one or more such financial transactions which
in fact involve either the proceeds of an act of terrorism as defined in
subdivision one of section 490.05 of this part, or a monetary instrument
given, received or intended to be used to support a violation of article
four hundred ninety of this part:
(i) With intent to:
(A) promote the carrying on of criminal conduct; or
(B) engage in conduct constituting a felony as set forth in section
[eighteen hundred two,] eighteen hundred three, eighteen hundred four,
eighteen hundred five, [eighteen hundred seven or eighteen hundred
eight] OR EIGHTEEN HUNDRED SIX of the tax law; or
(ii) Knowing that the transaction or transactions in whole or in part
are designed to:
(A) conceal or disguise the nature, the location, the source, the
ownership or the control of either the proceeds of an act of terrorism
as defined in subdivision one of section 490.05 of this part, or a mone-
tary instrument given, received or intended to be used to support a
violation of article four hundred ninety of this part; or
(B) avoid any transaction reporting requirement imposed by law; and
(b) the total value of the property involved in such financial trans-
action or transactions exceeds one thousand dollars; or
S 7. Subdivision 1 of section 470.22 of the penal law, as added by
section 18 of part A of chapter 1 of the laws of 2004, is amended to
read as follows:
1. Knowing that the property involved in one or more financial trans-
actions represents either the proceeds of an act of terrorism as defined
in subdivision one of section 490.05 of this part, or a monetary instru-
ment given, received or intended to be used to support a violation of
article four hundred ninety of this part:
(a) he or she conducts one or more such financial transactions which
in fact involve either the proceeds of an act of terrorism as defined in
subdivision one of section 490.05 of this part, or a monetary instrument
given, received or intended to be used to support a violation of article
four hundred ninety of this part:
(i) With intent to:
(A) promote the carrying on of specified criminal conduct; or
(B) engage in conduct constituting a felony as set forth in section
[eighteen hundred two,] eighteen hundred three, eighteen hundred four,
eighteen hundred five, [eighteen hundred seven or eighteen hundred
eight] OR EIGHTEEN HUNDRED SIX of the tax law; or
(ii) Knowing that the transaction or transactions in whole or in part
are designed to:
S. 57--B 169 A. 157--B
(A) conceal or disguise the nature, the location, the source, the
ownership or the control of either the proceeds of an act of terrorism
as defined in subdivision one of section 490.05 of this part, or a mone-
tary instrument given, received or intended to be used to support a
violation of article four hundred ninety of this part; or
(B) avoid any transaction reporting requirement imposed by law; and
(b) the total value of the property involved in such financial trans-
action or transactions exceeds five thousand dollars; or
S 8. Subdivision 1 of section 470.23 of the penal law, as added by
section 18 of part A of chapter 1 of the laws of 2004, is amended to
read as follows:
1. Knowing that the property involved in one or more financial trans-
actions represents either the proceeds of an act of terrorism as defined
in subdivision one of section 490.05 of this part, or a monetary instru-
ment given, received or intended to be used to support a violation of
article four hundred ninety of this part:
(a) he or she conducts one or more such financial transactions which
in fact involve either the proceeds of an act of terrorism as defined in
subdivision one of section 490.05 of this part, or a monetary instrument
given, received or intended to be used to support a violation of article
four hundred ninety of this part:
(i) With intent to:
(A) promote the carrying on of specified criminal conduct; or
(B) engage in conduct constituting a felony as set forth in section
[eighteen hundred two,] eighteen hundred three, eighteen hundred four,
eighteen hundred five, [eighteen hundred seven or eighteen hundred
eight] OR EIGHTEEN HUNDRED SIX of the tax law; or
(ii) Knowing that the transaction or transactions in whole or in part
are designed to:
(A) conceal or disguise the nature, the location, the source, the
ownership or the control of either the proceeds of an act of terrorism
as defined in subdivision one of section 490.05 of this part, or a mone-
tary instrument given, received or intended to be used to support a
violation of article four hundred ninety of this part; or
(B) avoid any transaction reporting requirement imposed by law; and
(b) the total value of the property involved in such financial trans-
action or transactions exceeds twenty-five thousand dollars; or
S 9. Subdivision 1 of section 470.24 of the penal law, as added by
section 18 of part A of chapter 1 of the laws of 2004, is amended to
read as follows:
1. Knowing that the property involved in one or more financial trans-
actions represents either the proceeds of an act of terrorism as defined
in subdivision one of section 490.05 of this part, or a monetary instru-
ment given, received or intended to be used to support a violation of
article four hundred ninety of this part:
(a) he or she conducts one or more financial transactions which in
fact involve either the proceeds of an act of terrorism as defined in
subdivision one of section 490.05 of this part, or a monetary instrument
given, received or intended to be used to support a violation of article
four hundred ninety of this part:
(i) With intent to:
(A) promote the carrying on of specified criminal conduct; or
(B) engage in conduct constituting a felony as set forth in section
[eighteen hundred two,] eighteen hundred three, eighteen hundred four,
eighteen hundred five, [eighteen hundred seven or eighteen hundred
eight] OR EIGHTEEN HUNDRED SIX of the tax law; or
S. 57--B 170 A. 157--B
(ii) Knowing that the transaction or transactions in whole or in part
are designed to:
(A) conceal or disguise the nature, the location, the source, the
ownership or the control of the proceeds of either the proceeds of an
act of terrorism as defined in subdivision one of section 490.05 of this
part, or a monetary instrument given, received or intended to be used to
support a violation of article four hundred ninety of this part; or
(B) avoid any transaction reporting requirement imposed by law; and
(iii) The total value of the property involved in such financial tran-
saction or transactions exceeds seventy-five thousand dollars.
S 10. Subdivision 5 of section 480-a of the tax law, as amended by
chapter 760 of the laws of 1992 and as renumbered by chapter 629 of the
laws of 1996, is amended to read as follows:
5. Except for subdivision [(k)] (I) of section eighteen hundred four-
teen of this chapter, the criminal penalties set forth in article thir-
ty-seven of this chapter shall not apply to a violation of this section.
S 11. Paragraph 7 of subdivision (m) of section 1111 of the tax law,
as added by section 1 of part M1 of chapter 109 of the laws of 2006, is
amended to read as follows:
(7) Notwithstanding any foregoing provision of this subdivision or
other law to the contrary, this subdivision, subdivision (h) of section
eleven hundred nine OF THIS PART and subdivision [(t)] (N) of section
eighteen hundred seventeen of this chapter, section three hundred nine-
ty-two-i of the general business law and other provisions of law which
refer or relate to this subdivision shall apply only to (A) motor fuel
or diesel motor fuel sold for use directly and exclusively in the engine
of a motor vehicle and (B) motor fuel or diesel motor fuel, other than
water-white kerosene sold exclusively for heating purposes in containers
of no more than twenty gallons, sold by a retail gas station. For
purposes of this subdivision and such other provisions of law, "retail
gas station" shall mean a filling station where such fuel is stored
primarily for sale by delivery directly into the ordinary fuel tank
connected with the engine of a motor vehicle to be consumed in the oper-
ation of such motor vehicle or where such fuel is stored primarily for
sale by delivery directly into the ordinary fuel tank connected with the
engine of a vessel to be consumed in the operation of such vessel. The
commissioner is hereby authorized to require the use of certificates or
other documents, and procedures related thereto, to effect the purposes
of this subdivision; and any such certificate or other document so
required by the commissioner for a purchaser to tender to a vendor to
purchase such fuel subject to tax on the reduced base established by or
pursuant to this subdivision is hereby deemed to be an exemption certif-
icate as such term is used in subdivision (c) of section eleven hundred
thirty-two of this article and as if the provisions of such subdivision
(c) referred to such a certificate or document required pursuant to this
subdivision.
S 12. Paragraph 5 of subdivision (f) of section 1137 of the tax law,
as added by chapter 170 of the laws of 1994, is amended to read as
follows:
(5) (i) Where a person takes a credit pursuant to this subdivision in
an amount greater than allowed or under circumstances where the credit
is not authorized, or (ii) where a person takes a credit pursuant to
this subdivision at the time of filing a return for a quarterly or long-
er period and such person later becomes subject to a penalty imposed
under subparagraph (vi) of paragraph one of subdivision (a) or under
paragraph two of subdivision (a) of section eleven hundred forty-five of
S. 57--B 171 A. 157--B
this [article] PART or is later found guilty of a crime or offense under
section EIGHTEEN HUNDRED THREE, EIGHTEEN HUNDRED FOUR, EIGHTEEN HUNDRED
FIVE, EIGHTEEN HUNDRED SIX, OR eighteen hundred seventeen of this chap-
ter, relating to the period for which the return was filed, the amount
of such credit taken in such greater amount, under such circumstances or
for such period shall be disallowed and the person shall be required to
pay, as tax, an amount equal to the credit so taken, at such time and in
such manner as prescribed by the commissioner; provided, however, that
such amount shall be paid and disposed of in the same manner as other
revenues from this article, and may be determined, assessed, collected
and enforced in the same manner as the tax imposed by this article.
S 13. Subdivision (c) of section 1800 of the tax law, as added by
chapter 65 of the laws of 1985, is amended to read as follows:
(c) As used in this article, the term "felony" and the term "misdemea-
nor" shall have the same meaning as they have in the penal law, and the
disposition of such offenses and the sentences imposed therefor shall be
as provided in such law except; (1) notwithstanding the provisions of
paragraph a of subdivision one of section 80.00 and paragraph (a) of
subdivision one of section 80.10 of the penal law relating to the fine
for a felony, the court may impose a fine not to exceed THE GREATER OF
DOUBLE THE AMOUNT OF THE UNDERPAID TAX LIABILITY RESULTING FROM THE
COMMISSION OF THE CRIME OR fifty thousand dollars, [except that] OR, in
the case of a corporation the fine may not exceed THE GREATER OF DOUBLE
THE AMOUNT OF THE UNDERPAID TAX LIABILITY RESULTING FROM THE COMMISSION
OF THE CRIME OR two hundred fifty thousand dollars and (2) notwithstand-
ing the provisions of subdivision one of section 80.05 and paragraph (b)
of subdivision one of section 80.10 of the penal law relating to the
fine for a class A misdemeanor, the court may impose a fine not to
exceed ten thousand dollars, except that in the case of a corporation
the fine may not exceed twenty thousand dollars.
S 14. The part heading of part 2 of article 37 of the tax law, as
added by chapter 65 of the laws of 1985, is amended to read as follows:
[INCOME, EARNINGS AND CORPORATE TAXES] TAX FRAUD ACTS AND
PENALTIES
S 15. Section 1801 of the tax law is REPEALED and a new section 1801
is added to read as follows:
S 1801. TAX FRAUD ACTS. (A) AS USED IN THIS ARTICLE, "TAX FRAUD ACT"
MEANS WILLFULLY ENGAGING IN AN ACT OR ACTS OR WILLFULLY CAUSING ANOTHER
TO ENGAGE IN AN ACT OR ACTS PURSUANT TO WHICH A PERSON:
(1) FAILS TO MAKE, RENDER, SIGN, CERTIFY, OR FILE ANY RETURN OR REPORT
REQUIRED UNDER THIS CHAPTER OR ANY REGULATION PROMULGATED UNDER THIS
CHAPTER WITHIN THE TIME REQUIRED BY OR UNDER THE PROVISIONS OF THIS
CHAPTER OR SUCH REGULATION;
(2) KNOWING THAT A RETURN, REPORT, STATEMENT OR OTHER DOCUMENT UNDER
THIS CHAPTER CONTAINS ANY MATERIALLY FALSE OR FRAUDULENT INFORMATION, OR
OMITS ANY MATERIAL INFORMATION, FILES OR SUBMITS THAT RETURN, REPORT,
STATEMENT OR DOCUMENT WITH THE STATE OR ANY POLITICAL SUBDIVISION OF THE
STATE, OR WITH ANY PUBLIC OFFICE OR PUBLIC OFFICER OF THE STATE OR ANY
POLITICAL SUBDIVISION OF THE STATE;
(3) KNOWINGLY SUPPLIES OR SUBMITS MATERIALLY FALSE OR FRAUDULENT
INFORMATION IN CONNECTION WITH ANY RETURN, AUDIT, INVESTIGATION, OR
PROCEEDING OR FAILS TO SUPPLY INFORMATION WITHIN THE TIME REQUIRED BY OR
UNDER THE PROVISIONS OF THIS CHAPTER OR ANY REGULATION PROMULGATED UNDER
THIS CHAPTER;
(4) ENGAGES IN ANY SCHEME TO DEFRAUD THE STATE OR A POLITICAL SUBDIVI-
SION OF THE STATE OR A GOVERNMENT INSTRUMENTALITY WITHIN THE STATE BY
S. 57--B 172 A. 157--B
FALSE OR FRAUDULENT PRETENSES, REPRESENTATIONS OR PROMISES AS TO ANY
MATERIAL MATTER, IN CONNECTION WITH ANY TAX IMPOSED UNDER THIS CHAPTER
OR ANY MATTER UNDER THIS CHAPTER;
(5) FAILS TO REMIT ANY TAX COLLECTED IN THE NAME OF THE STATE OR ON
BEHALF OF THE STATE OR ANY POLITICAL SUBDIVISION OF THE STATE WHEN SUCH
COLLECTION IS REQUIRED UNDER THIS CHAPTER;
(6) FAILS TO COLLECT ANY TAX REQUIRED TO BE COLLECTED UNDER ARTICLES
TWELVE-A, EIGHTEEN, TWENTY, TWENTY-TWO OR TWENTY-EIGHT OF THIS CHAPTER,
OR PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS CHAPTER;
(7) WITH INTENT TO EVADE ANY TAX FAILS TO PAY THAT TAX; OR
(8) ISSUES AN EXEMPTION CERTIFICATE, INTERDISTRIBUTOR SALES CERTIF-
ICATE, RESALE CERTIFICATE, OR ANY OTHER DOCUMENT CAPABLE OF EVIDENCING A
CLAIM THAT TAXES DO NOT APPLY TO A TRANSACTION, WHICH HE OR SHE DOES NOT
BELIEVE TO BE TRUE AND CORRECT AS TO ANY MATERIAL MATTER, WHICH OMITS
ANY MATERIAL INFORMATION, OR WHICH IS FALSE, FRAUDULENT, OR COUNTERFEIT.
(B) FOR PURPOSES OF THIS SUBDIVISION, "THIS CHAPTER" INCLUDES ANY
"RELATED STATUTE" OR ANY "RELATED INCOME OR EARNINGS TAX STATUTE", AS
DEFINED IN SECTION EIGHTEEN HUNDRED OF THIS ARTICLE.
(C) FOR PURPOSES OF THIS SUBDIVISION, THE TERM "WILLFULLY" SHALL BE
DEFINED TO MEAN ACTING WITH EITHER INTENT TO DEFRAUD, INTENT TO EVADE
THE PAYMENT OF TAXES OR INTENT TO AVOID A REQUIREMENT OF THIS CHAPTER, A
LAWFUL REQUIREMENT OF THE COMMISSIONER OR A KNOWN LEGAL DUTY.
S 16. Section 1802 of the tax law is REPEALED and a new section 1802
is added to read as follows:
S 1802. CRIMINAL TAX FRAUD IN THE FIFTH DEGREE. A PERSON COMMITS CRIM-
INAL TAX FRAUD IN THE FIFTH DEGREE WHEN HE OR SHE COMMITS A TAX FRAUD
ACT. CRIMINAL TAX FRAUD IN THE FIFTH DEGREE IS A CLASS A MISDEMEANOR.
S 17. Section 1803 of the tax law is REPEALED and a new section 1803
is added to read as follows:
S 1803. CRIMINAL TAX FRAUD IN THE FOURTH DEGREE. A PERSON COMMITS
CRIMINAL TAX FRAUD IN THE FOURTH DEGREE WHEN HE OR SHE COMMITS A TAX
FRAUD ACT OR ACTS AND, WITH THE INTENT TO EVADE ANY TAX DUE UNDER THIS
CHAPTER, OR TO DEFRAUD THE STATE OR ANY SUBDIVISION THEREOF, THE PERSON
PAYS THE STATE AND/OR A POLITICAL SUBDIVISION OF THE STATE (WHETHER BY
MEANS OF UNDERPAYMENT OR RECEIPT OF REFUND OR BOTH), IN A PERIOD OF NOT
MORE THAN ONE YEAR IN EXCESS OF THREE THOUSAND DOLLARS LESS THAN THE TAX
LIABILITY THAT IS DUE. CRIMINAL TAX FRAUD IN THE FOURTH DEGREE IS A
CLASS E FELONY.
S 18. Section 1804 of the tax law is REPEALED and a new section 1804
is added to read as follows:
S 1804. CRIMINAL TAX FRAUD IN THE THIRD DEGREE. A PERSON COMMITS CRIM-
INAL TAX FRAUD IN THE THIRD DEGREE WHEN HE OR SHE COMMITS A TAX FRAUD
ACT OR ACTS AND, WITH THE INTENT TO EVADE ANY TAX DUE UNDER THIS CHAP-
TER, OR TO DEFRAUD THE STATE OR ANY POLITICAL SUBDIVISION OF THE STATE,
THE PERSON PAYS THE STATE AND/OR A POLITICAL SUBDIVISION OF THE STATE
(WHETHER BY MEANS OF UNDERPAYMENT OR RECEIPT OF REFUND OR BOTH), IN A
PERIOD OF NOT MORE THAN ONE YEAR IN EXCESS OF TEN THOUSAND DOLLARS LESS
THAN THE TAX LIABILITY THAT IS DUE. CRIMINAL TAX FRAUD IN THE THIRD
DEGREE IS A CLASS D FELONY.
S 19. Section 1805 of the tax law is REPEALED and a new section 1805
is added to read as follows:
S 1805. CRIMINAL TAX FRAUD IN THE SECOND DEGREE. A PERSON COMMITS
CRIMINAL TAX FRAUD IN THE SECOND DEGREE WHEN HE OR SHE COMMITS A TAX
FRAUD ACT OR ACTS AND, WITH THE INTENT TO EVADE ANY TAX DUE UNDER THIS
CHAPTER, OR TO DEFRAUD THE STATE OR ANY SUBDIVISION OF THE STATE, THE
PERSON PAYS THE STATE AND/OR A POLITICAL SUBDIVISION OF THE STATE
S. 57--B 173 A. 157--B
(WHETHER BY MEANS OF UNDERPAYMENT OR RECEIPT OF REFUND OR BOTH), IN A
PERIOD OF NOT MORE THAN ONE YEAR IN EXCESS OF FIFTY THOUSAND DOLLARS
LESS THAN THE TAX LIABILITY THAT IS DUE. CRIMINAL TAX FRAUD IN THE
SECOND DEGREE IS A CLASS C FELONY.
S 20. Section 1806 of the tax law is REPEALED and a new section 1806
is added to read as follows:
S 1806. CRIMINAL TAX FRAUD IN THE FIRST DEGREE. A PERSON COMMITS CRIM-
INAL TAX FRAUD IN THE FIRST DEGREE WHEN HE OR SHE COMMITS A TAX FRAUD
ACT OR ACTS AND, WITH THE INTENT TO EVADE ANY TAX DUE UNDER THIS CHAP-
TER, OR TO DEFRAUD THE STATE OR ANY SUBDIVISION OF THE STATE, THE PERSON
PAYS THE STATE AND/OR A POLITICAL SUBDIVISION OF THE STATE (WHETHER BY
MEANS OF UNDERPAYMENT OR RECEIPT OF REFUND OR BOTH), IN A PERIOD OF NOT
MORE THAN ONE YEAR IN EXCESS OF ONE MILLION DOLLARS LESS THAN THE TAX
LIABILITY THAT IS DUE. CRIMINAL TAX FRAUD IN THE FIRST DEGREE IS A CLASS
B FELONY.
S 21. Section 1807 of the tax law is REPEALED and a new section 1807
is added to read as follows:
S 1807. AGGREGATION. FOR PURPOSES OF THIS ARTICLE, THE PAYMENTS DUE
AND NOT PAID UNDER ARTICLE ONE OF THIS CHAPTER PURSUANT TO A COMMON
SCHEME OR PLAN OR DUE AND NOT PAID, WITHIN ONE YEAR, MAY BE CHARGED IN A
SINGLE COUNT, AND THE AMOUNT OF UNDERPAID TAX LIABILITY INCURRED, WITHIN
ONE YEAR, MAY BE AGGREGATED IN A SINGLE COUNT.
S 22. Section 1808 of the tax law is REPEALED.
S 23. Sections 1809 and 1810 of the tax law are REPEALED.
S 24. Section 1811 of the tax law, as amended by section 116, subdivi-
sions (a) and (b) as separately amended by section 145 of chapter 190 of
the laws of 1990, is amended to read as follows:
S 1811. Estate, gift and transfer taxes.[--(a) Failure to file a
return or report, or pay tax.--Any person required under article twen-
ty-six, twenty-six-A or twenty-six-B of this chapter to pay tax, or make
a return or report, who, with intent to evade tax or any requirement of
such articles, fails to pay such tax or make such return or report, at
the time or times so required, shall be guilty of a misdemeanor.
(b) Fraudulent returns, reports, statements or other documents.--(1)
Any person who, with intent to evade the tax or any requirement of arti-
cle twenty-six, twenty-six-A or twenty-six-B of this chapter or any
lawful requirement of the commissioner of taxation and finance there-
under, makes and subscribes any return, report, statement or other docu-
ment which is required to be filed with or furnished to the commissioner
or to any person, pursuant to or under the provisions of such articles,
which he does not believe to be true and correct as to every material
matter shall be guilty of a misdemeanor.
(2) Any person who, with intent to evade the tax or any requirement of
article twenty-six, twenty-six-A or twenty-six-B of this chapter or any
lawful requirement of the commissioner of taxation and finance there-
under, who delivers or discloses to the commissioner or to any person,
pursuant to or under the provisions of such articles, any list, return,
report, account, statement or other document known by him to be fraudu-
lent or to be false as to any material matter shall be guilty of a
misdemeanor.
(3) For purposes of this section, the omission by any person of any
material matter with intent to deceive shall constitute the delivery or
disclosure of a document known by him to be fraudulent or to be false as
to any material matter.
(c)] Wrongful entry into safe deposit box.--Any person who enters a
safe deposit box of a decedent, or a box standing in the joint names of
S. 57--B 174 A. 157--B
such a decedent and one or more persons, with knowledge of the death of
the lessee of such box, which entry results in an evasion of the tax
imposed by article twenty-six of this chapter shall be guilty of a
misdemeanor.
S 25. Section 1812 of the tax law, as added by chapter 65 of the laws
of 1985, paragraphs 4 and 5 of subdivision (c) as added and subdivision
(d) as amended by chapter 261 of the laws of 1988 and subdivisions (g)
and (h) as added by chapter 276 of the laws of 1986, is amended to read
as follows:
S 1812. Motor fuel taxes.--(a) Attempt to evade or defeat tax.--Any
person who willfully attempts in any manner to evade or defeat any tax
imposed by article twelve-A of this chapter or the payment thereof
shall, in addition to other penalties provided by law, be guilty of a
class E felony.
(b) [Willful failure to file a return or report, or pay tax.--Any
person required under article twelve-A of this chapter to pay tax, or
make a return or report, who willfully fails to pay such tax or make
such return or report, at the time or times so required, shall be guilty
of a misdemeanor.
(c) Fraudulent returns, reports, statements or other documents.--(1)
Any person who willfully makes and subscribes any return, report, state-
ment or other document which is required to be filed with or furnished
to the tax commission or to any person, pursuant to the provisions of
article twelve-A of this chapter, which he does not believe to be true
and correct as to every material matter shall be guilty of a class E
felony.
(2) Any person who willfully delivers or discloses to the tax commis-
sion or to any person, pursuant to the provisions of article twelve-A of
this chapter, any list, return, report, account, statement or other
document known by him to be fraudulent or to be false as to any material
matter shall be guilty of a misdemeanor.
(3) For purposes of this section, the omission by any person of any
material matter with intent to deceive shall constitute the delivery or
disclosure of a document known by him to be fraudulent or to be false as
to any material matter.
(4) Any person who willfully issues an exempt transaction certificate
(or similar document which has been prescribed by the commissioner of
taxation and finance) or interdistributor sale certificate in order to
claim an exemption from the taxes imposed on Diesel motor fuel by arti-
cle twelve-A of this chapter which he does not believe to be true and
correct as to any material matter shall, in addition to any other penal-
ty provided by law, be guilty of a misdemeanor.
(5)] Any person who willfully accepts an exempt transaction certif-
icate (or similar document which has been prescribed by the commissioner
[of taxation and finance]) or interdistributor sale certificate with
respect to claiming exemption from the taxes imposed on Diesel motor
fuel by article twelve-A of this chapter which he does not believe to be
true and correct as to any material matter shall, in addition to any
other penalty provided by law, be guilty of a misdemeanor.
[(d)] (C) Any owner of a filling station who shall willfully and know-
ingly have in his custody, possession or under his control any motor
fuel or Diesel motor fuel on which (1) the taxes imposed by or pursuant
to the authority of such article have not been assumed or paid by a
distributor registered as such under such article or (2) the taxes
imposed by or pursuant to the authority of such article have not been
included in the cost to him of such fuel where such taxes were required
S. 57--B 175 A. 157--B
to have been passed through to him and included in the cost to him of
such fuel, shall in either case, be guilty of a class E felony. For
purposes of this subdivision, such owner shall willfully and knowingly
have in his custody, possession or under his control any motor fuel or
Diesel motor fuel on which such taxes have not been assumed or paid by a
distributor registered as such where such owner has knowledge of the
requirement that such taxes be paid and where, to his knowledge, such
taxes have not been assumed or paid by a registered distributor on such
motor fuel or Diesel motor fuel. Such owner shall willfully and knowing-
ly have in his custody, possession or under his control any motor fuel
or Diesel motor fuel on which such taxes are required to have been
passed through to him and have not been included in his cost where such
owner has knowledge of the requirement that such taxes be passed through
and where to his knowledge such taxes have not been so included.
[(e)] (D) Any willful act or omission, other than those described in
subdivision (a), (b), OR (c) [or (d)] of this section, by any person
which constitutes a violation of any provision of article twelve-A of
this chapter shall constitute a misdemeanor.
[(f)] (E) The provisions of this section shall apply for purposes of
the tax imposed pursuant to the authority of section two hundred eight-
y-four-b of this chapter.
[(g) Any person who, being duly subpoenaed, pursuant to section one
hundred seventy-four of this chapter or the provisions of the civil
practice law and rules, in connection with a matter arising under arti-
cle twelve-A of this chapter, to attend as a witness or to produce
books, accounts, records, memoranda, documents or other papers who (i)
fails or refuses to attend without lawful excuse, (ii) refuses to be
sworn, (iii) refuses to answer any material and proper question, or (iv)
refuses, after reasonable notice, to produce books, accounts, records,
memoranda, documents or other papers in his possession or under his
control which constitute material and proper evidence shall be guilty of
a misdemeanor.
(h)] (F) Any person who willfully makes a manifest required by section
two hundred eighty-six-b of this chapter which he does not believe to be
true and correct as to every material matter or who willfully produces
any manifest for inspection as required under section two hundred eight-
y-six-b of this chapter which is known to be fraudulent or to be false
as to any material matter shall be guilty of a class E felony.
S 26. Section 1812-f of the tax law, as added by chapter 190 of the
laws of 1990, is amended to read as follows:
S 1812-f. Article thirteen-A tax. (a) [Attempt to evade or defeat tax.
Any person who willfully attempts in any manner to evade or defeat any
tax imposed by article thirteen-A of this chapter or the payment thereof
shall be guilty of a misdemeanor; provided, however, that if the tax
liability evaded or defeated as a result of such conduct is equal to or
greater than one thousand dollars, such person shall be guilty of class
E felony.
(b) Willful failure to file a return or report, or pay tax. Any person
required under article thirteen-A of this chapter to pay tax, or make a
return or report, who willfully fails to pay such tax or make such
return or report, at the time or times so required, shall be guilty of a
misdemeanor.
(c) Fraudulent returns, reports, statements or other documents. (1)
Any person who willfully makes and subscribes any return, report, state-
ment or other document which is required to be filed with or furnished
to the commissioner of taxation and finance or to any person, pursuant
S. 57--B 176 A. 157--B
to the provisions of article thirteen-A of this chapter, which he does
not believe to be true and correct as to every material matter shall be
guilty of a misdemeanor. Provided, however, where such person substan-
tially understates on such return, report, statement, or other document
his tax liability under such article, such person shall be guilty of a
class E felony. For purposes of this subdivision, the term "substantial-
ly understates" refers to the excess amount of the tax required to be
shown on the return or report for the taxable period over the amount of
the tax imposed which is shown on the return, report, statement, or
other document, provided that the excess is one thousand dollars or
more, and provided that the taxpayer, acting without reasonable ground
for believing that his conduct is lawful, intended to evade at least the
amount of such excess.
(2) Any person who willfully delivers or discloses to the commissioner
of taxation and finance or to any person, pursuant to the provisions of
article thirteen-A of this chapter, any list, return, report, account,
statement or other document known by him to be fraudulent or to be false
as to any material matter shall be guilty of a misdemeanor.
(3) For purposes of this section, the omission by any person of any
material matter with intent to deceive shall constitute the delivery or
disclosure of a document known by him to be fraudulent or to be false as
to any material matter.
(4) Any person who willfully issues an exempt transaction certificate
(or similar document which has been prescribed by the commissioner of
taxation and finance) or interdistributor sale certificate in order to
claim an exemption from taxes imposed with respect to diesel motor fuel
or residual petroleum product by article thirteen-A of this chapter
which he does not believe to be true and correct as to any material
matter shall be guilty of a misdemeanor.
(5)] Any person who willfully accepts an exempt transaction certif-
icate (or similar document which has been prescribed by the commissioner
of taxation and finance) or interdistributor sale certificate with
respect to claiming exemption from the taxes imposed with respect to
diesel motor fuel or residual petroleum product by article thirteen-A of
this chapter which he does not believe to be true and correct as to any
material matter shall be guilty of a misdemeanor.
[(d)] (B) Any willful act or omission, other than those described in
SECTION EIGHTEEN HUNDRED ONE OF THIS ARTICLE OR subdivision (a)[, (b)]
or (c) of this section, by any person which constitutes a violation of
any provision of article thirteen-A of this chapter shall constitute a
misdemeanor.
[(e) Any person who duly is subpoenaed, pursuant to section one
hundred seventy-four of this chapter or the provisions of the civil
practice law and rules, in connection with a matter arising under arti-
cle thirteen-A of this chapter, to attend as a witness or to produce
books, accounts, records, memoranda, documents or other papers and who
(i) fails or refuses to attend without lawful excuse, (ii) refuses to be
sworn, (iii) refuses to answer any material and proper question, or (iv)
refuses, after reasonable notice, to produce books, accounts, records,
memoranda, documents or other papers in his possession or under his
control which constitute material and proper evidence shall be guilty of
a misdemeanor.
(f)] (C) Any person who willfully makes a movement tracking document
required pursuant to subdivision (b) of section three hundred fifteen of
this chapter, which he does not believe to be true and correct as to
every material matter or who willfully produces any such document for
S. 57--B 177 A. 157--B
inspection as required under subdivision (b) of section three hundred
fifteen of this chapter which he knows to be fraudulent or to be false
as to any material matter shall be guilty of a misdemeanor; provided,
however, that if the tax liability under article thirteen-A of this
chapter with respect to the product being transported, is equal to or
greater than one thousand dollars, such person shall be guilty of a
class E felony.
S 27. Section 1813 of the tax law, as added by chapter 65 of the laws
of 1985, subdivisions (h), (i) and (j) as added by chapter 508 of the
laws of 1993, is amended to read as follows:
S 1813. Alcoholic beverage tax.--(a) [Attempt to evade or defeat tax.-
-Any person who willfully attempts in any manner to evade or defeat any
tax imposed by article eighteen of this chapter or the payment thereof
shall, in addition to other penalties provided by law, be guilty of a
misdemeanor.
(b) Willful failure to file a return or report, or pay tax.--Any
person required under article eighteen of this chapter to pay or make a
return or report, who willfully fails to pay such tax or make such
return or report at the time or times so required, shall be guilty of a
misdemeanor.
(c) Fraudulent returns, reports, statements or other documents.--(1)
Any person who willfully makes and subscribes any return, report, state-
ment or other document which is required to be filed with or furnished
to the tax commission or to any person, pursuant to article eighteen of
this chapter, which he does not believe to be true and correct as to
every material matter shall be guilty of a class E felony.
(2) Any person who willfully delivers or discloses to the tax commis-
sion or to any person, pursuant to article eighteen of this chapter, any
list, return, report, account, statement or other document known by him
to be fraudulent or to be false as to any material matter shall be guil-
ty of a misdemeanor.
(3) For purposes of this section, the omission by any person of any
material matter with intent to deceive shall constitute the delivery or
disclosure of a document known by him to be fraudulent or to be false as
to any material matter.
(d)] Unlawful use of stamps.--Any person who shall counterfeit stamps
prescribed by section four hundred thirty-eight of this chapter or who
shall willfully remove or alter or knowingly permit to be removed or
altered, the cancellation or defacing marks required to be placed upon
any stamp under provisions of article eighteen of this chapter with
intent to use such stamp, or who shall willfully open any container of
alcoholic beverages without first destroying the stamp affixed thereto
or who shall knowingly or willfully buy, prepare for use, use, have in
his possession or suffer to be used any washed, restored or counterfeit
stamp shall be guilty of a misdemeanor.
[(e)] (B) Unlawful use of alcoholic beverages.--Any person who shall
willfully sell or use any alcoholic beverages upon which tax has not
been paid by the affixation of stamps as prescribed pursuant to section
four hundred thirty-eight of this chapter shall be guilty of a misdemea-
nor.
[(f)] (C) Any willful act or omission, other than those described in
SECTION EIGHTEEN HUNDRED ONE OF THIS ARTICLE OR subdivision (a)[,] OR
(b)[, (c), (d) or (e)] of this section, by any person which constitutes
a violation of any provision of article eighteen of this chapter shall
constitute a misdemeanor.
S. 57--B 178 A. 157--B
[(g)] (D) The provisions of this section shall apply for purposes of
any tax imposed pursuant to the authority of section four hundred
forty-five of this chapter.
[(h)] (E) Person not registered as a distributor. (1) Any person
required to be registered as a distributor pursuant to the provisions of
article eighteen of this chapter who, while not so registered, knowingly
imports or causes to be imported into the state, for sale or use there-
in, any liquors or, who, except in accordance with clause (i) or (ii) of
paragraph (b) of subdivision four of section four hundred twenty of this
chapter, knowingly produces, distills, manufactures, compounds, mixes or
ferments in this state any such liquors for sale, or who, as a purchaser
of a warehouse receipt, knowingly causes liquors covered by such receipt
to be removed from a warehouse in this state, shall be guilty of a class
A misdemeanor. Provided, however, that any person who has twice been
convicted under this section within the preceding five years, shall be
guilty of a class E felony for any subsequent violation of this para-
graph.
(2) Any person who, while not registered as a distributor pursuant to
the provisions of article eighteen of this chapter, knowingly and inten-
tionally imports or causes to be imported into this state, for sale or
use therein, more than three hundred sixty liters of liquors into this
state in a one-year period or, except in accordance with clause (i) or
(ii) of paragraph (b) of subdivision four of section four hundred twenty
of this chapter, knowingly and intentionally produces, distills, manu-
factures, compounds, mixes or ferments for sale more than three hundred
sixty liters of such liquors within this state in a one-year period, or,
as a purchaser of a warehouse receipt, knowingly and intentionally caus-
es more than three hundred sixty liters of liquors in a one-year period
to be removed from a warehouse in this state, shall be guilty of a class
E felony.
(3) For purposes of this subdivision, it shall be presumed that the
importation or the causing to be imported into this state or the
production, distillation, manufacture, compounding, mixing or fermenting
in this state of more than ninety liters of such liquors by any person
in a one-year period is for purposes of sale. Such presumption may be
rebutted by the introduction of substantial evidence to the contrary.
[(i)] (F) Person not registered as a distributor for city purposes.
(1) Any person required to be registered as a distributor for city
purposes pursuant to the provisions of section four hundred forty-five
of article eighteen of this chapter who, while not so registered, know-
ingly imports or causes to be imported into such city, for sale or use
therein, any liquors or, who, except in accordance with clause (i) or
(ii) of paragraph (b) of subdivision four of section four hundred twenty
of this chapter as incorporated into such section four hundred forty-
five, knowingly produces, distills, manufactures, compounds, mixes or
ferments in such city any such liquors for sale, or who, as a purchaser
of a warehouse receipt, causes liquors covered by such receipt to be
removed from a warehouse in this state, shall be guilty of a class A
misdemeanor. Provided, however, that any person who has twice been
convicted under this section within the preceding five years shall be
guilty of a class E felony for any subsequent violation of this para-
graph.
(2) Any person who, while not registered as a distributor for city
purposes pursuant to the provisions of section four hundred forty-five
of article eighteen of this chapter, knowingly and intentionally imports
or causes to be imported into such city, for sale or use therein, more
S. 57--B 179 A. 157--B
than three hundred sixty liters of liquors into such city in a one-year
period or, except in accordance with clause (i) or (ii) of paragraph (b)
of subdivision four of section four hundred twenty of this chapter as
incorporated into such section four hundred forty-five, knowingly and
intentionally produces, distills, manufactures, compounds, mixes or
ferments for sale more than three hundred sixty liters of such liquors
within such city in a one-year period, or, as a purchaser of a warehouse
receipt, knowingly and intentionally causes more than three hundred
sixty liters of liquors in a one-year period to be removed from a ware-
house in this [store] STATE, shall be guilty of a class E felony.
(3) For purposes of this subdivision, it shall be presumed that the
importation or the causing to be imported into such city or the
production, distillation, manufacture, compounding, mixing or fermenting
in such city of more than ninety liters of liquors by any person in a
one-year period is for purposes of sale. Such presumption may be
rebutted by the introduction of substantial evidence to the contrary.
[(j)] (G) Any person, other than the distributor registered under
article eighteen of this chapter which imported or caused the liquors to
be imported into this state, who shall willfully and knowingly have in
his custody, possession or under his control liquors with respect to
which the taxes imposed by or pursuant to the authority of article eigh-
teen of this chapter have not been assumed or paid by a distributor
registered as such under such article, shall be guilty of a class B
misdemeanor; if such person shall willfully and knowingly have more than
ninety liters of such liquors in his custody or possession or under his
control, such person shall be guilty of a class A misdemeanor; or if
such person shall knowingly and intentionally have more than three
hundred sixty liters of such liquors in his custody or possession or
under his control, such person shall be guilty of a class E felony. For
purposes of this subdivision, such person shall willfully and knowingly
have in his custody, possession or under his control any liquors with
respect to which such taxes have not been assumed or paid by a distribu-
tor registered as such where such person has knowledge of the require-
ment of such taxes and where, to his knowledge, such taxes have not been
assumed or paid by a registered distributor with respect to such
liquors.
S 28. Section 1814 of the tax law, as added by chapter 65 of the laws
of 1985, the section heading and subdivisions (c), (g) and (h) as
amended and subdivision (j) as added by chapter 61 of the laws of 1989,
paragraph 2 of subdivision (a) and paragraph 1 of subdivision (e) as
amended by chapter 508 of the laws of 2004, subdivisions (d) and (e) as
amended by chapter 262 of the laws of 2000 and subdivision (k) as added
by chapter 190 of the laws of 1990, is amended to read as follows:
S 1814. Cigarette and tobacco products tax.--(a) [Attempt to evade or
defeat tax.--(1) Any person who willfully attempts in any manner to
evade or defeat any tax imposed by article twenty of this chapter or the
payment thereof shall, in addition to other penalties provided by law,
be guilty of a misdemeanor.
(2)] Any person who willfully attempts in any manner to evade or
defeat the taxes imposed by article twenty of this chapter or payment
thereof on (i) ten thousand cigarettes or more (ii) twenty-two thousand
cigars or more, or (iii) four hundred forty pounds of tobacco or more or
has previously been convicted two or more times of a violation of para-
graph one of this subdivision shall be guilty of a class E felony.
(b) [Willful failure to file a return or report, or pay tax.--Any
person required under article twenty of this chapter to pay or make a
S. 57--B 180 A. 157--B
return or report, who willfully fails to pay such tax or make such
return or report, at the time or times so required, shall be guilty of a
misdemeanor.
(c) Fraudulent returns, reports, statements or other documents.--(1)
Any person who willfully makes and subscribes any return, report, state-
ment or other document which is required to be filed with or furnished
to the commissioner of taxation and finance or to any person, pursuant
to article twenty of this chapter, which he does not believe to be true
and correct as to every material matter shall be guilty of a misdemea-
nor.
(2) Any person who willfully delivers or discloses to the commissioner
of taxation and finance or to any person, pursuant to article twenty of
this chapter, any list, return, report, account, statement or other
document known by him to be fraudulent or to be false as to any material
matter shall be guilty of a misdemeanor.
(3) For purposes of this section, the omission by any person of any
material matter with intent to deceive shall constitute the delivery or
disclosure of a document known by him to be fraudulent or to be false as
to any material matter.
(d)] Any person, other than an agent licensed by the commissioner, who
possesses or transports for the purpose of sale any unstamped or unlaw-
fully stamped packages of cigarettes subject to tax imposed by section
four hundred seventy-one of this chapter, or who sells or offers for
sale unstamped or unlawfully stamped packages of cigarettes in violation
of the provisions of article twenty of this chapter shall be guilty of a
misdemeanor. Any person who violates the provisions of this subdivision
after having previously been convicted of a violation of this subdivi-
sion within the preceding five years shall be guilty of a class E felo-
ny.
[(e)] (C) (1) Any person, other than an agent licensed by the commis-
sioner, who willfully possesses or transports for the purpose of sale
ten thousand or more cigarettes subject to the tax imposed by section
four hundred seventy-one of this chapter in any unstamped or unlawfully
stamped packages or who willfully sells or offers for sale ten thousand
or more cigarettes in any unstamped or unlawfully stamped packages in
violation of article twenty of this chapter shall be guilty of a class E
felony.
(2) Any person, other than an agent licensed by the commissioner, who
willfully possesses or transports for the purpose of sale thirty thou-
sand or more cigarettes subject to the tax imposed by section four
hundred seventy-one of this chapter in any unstamped or unlawfully
stamped packages or who willfully sells or offers for sale thirty thou-
sand or more cigarettes in any unstamped or unlawfully stamped packages
in violation of article twenty of this chapter shall be guilty of a
class D felony.
[(f)] (D) For the purposes of this section, the possession or trans-
portation within this state by any person, other than an agent, at any
one time of five thousand or more cigarettes in unstamped or unlawfully
stamped packages shall be presumptive evidence that such cigarettes are
possessed or transported for the purpose of sale and are subject to the
tax imposed by section four hundred seventy-one of this chapter. With
respect to such possession or transportation any provisions of article
twenty of this chapter providing for a time period during which a use
tax imposed by such article may be paid on unstamped cigarettes or
unlawfully or improperly stamped cigarettes or during which such ciga-
rettes may be returned to an agent shall not apply. The possession with-
S. 57--B 181 A. 157--B
in this state of more than four hundred cigarettes in unstamped or
unlawfully stamped packages by any person other than an agent at any one
time shall be presumptive evidence that such cigarettes are subject to
tax as provided by article twenty of this chapter.
[(g)] (E) Nothing in this section shall apply to common or contract
carriers or warehousemen while engaged in lawfully transporting or stor-
ing unstamped packages of cigarettes as merchandise, or lawfully trans-
porting or storing tobacco products, nor to any employee of such carrier
or warehouseman acting within the scope of his employment, nor to public
officers or employees in the performance of their official duties
requiring possession or control of unstamped or unlawfully stamped pack-
ages of cigarettes or possession or control of tobacco products, nor to
temporary incidental possession by employees or agents of persons
lawfully entitled to possession, nor to persons whose possession is for
the purpose of aiding police officers in performing their duties.
[(h)] (F) Any willful act or omission, other than those described in
SECTION EIGHTEEN HUNDRED ONE OF THIS ARTICLE OR subdivision (a), (b),
(c), (d), (e), [(f),] (g), (H) OR (i) [or (j)] of this section, by any
person which constitutes a violation of any provision of article twenty
of this chapter shall constitute a misdemeanor.
[(i)] (G) Any person who falsely or fraudulently makes, alters or
counterfeits any stamp prescribed by the tax commission under the
provisions of article twenty of this chapter, or causes or procures to
be falsely or fraudulently made, altered or counterfeited any such
stamp, or knowingly and willfully utters, purchases, passes or tenders
as true any such false, altered or counterfeited stamp, or knowingly and
willfully possesses any cigarettes in packages bearing any such false,
altered or counterfeited stamp, and any person who knowingly and will-
fully makes, causes to be made, purchases or receives any device for
forging or counterfeiting any stamp, prescribed by the tax commission
under the provisions of article twenty of this chapter, or who knowingly
and willfully possesses any such device, shall be guilty of a class E
felony. For the purposes of this subdivision, the words "stamp
prescribed by the tax commission" shall include a stamp, impression or
imprint made by a metering machine, the design of which has been
approved by such commission.
[(j)] (H) (1) Any dealer, other than a distributor appointed by the
commissioner of taxation and finance under article twenty of this chap-
ter, who shall knowingly transport or have in his custody, possession or
under his control more than ten pounds of tobacco or more than five
hundred cigars upon which the taxes imposed by article twenty of this
chapter have not been assumed or paid by a distributor appointed by the
commissioner of taxation and finance under article twenty of this chap-
ter, or other person treated as a distributor pursuant to section four
hundred seventy-one-d of this chapter, shall be guilty of a misdemeanor
punishable by a fine of not more than five thousand dollars or by a term
of imprisonment not to exceed thirty days.
(2) Any person, other than a dealer or a distributor appointed by the
commissioner [of taxation and finance] under article twenty of this
chapter, who shall knowingly transport or have in his custody,
possession or under his control more than fifteen pounds of tobacco or
more than seven hundred fifty cigars upon which the taxes imposed by
article twenty of this chapter have not been assumed or paid by a
distributor appointed by the commissioner [of taxation and finance]
under article twenty of this chapter, or other person treated as a
distributor pursuant to section four hundred seventy-one-d of this chap-
S. 57--B 182 A. 157--B
ter shall be guilty of a misdemeanor punishable by a fine of not more
than five thousand dollars or by a term of imprisonment not to exceed
thirty days.
(3) Any person, other than a distributor appointed by the commissioner
[of taxation and finance] under article twenty of this chapter, who
shall knowingly transport or have in his custody, possession or under
his control twenty-five hundred or more cigars or fifty or more pounds
of tobacco upon which the taxes imposed by article twenty of this chap-
ter have not been assumed or paid by a distributor appointed by the
commissioner [of taxation and finance] under article twenty of this
chapter, or other person treated as a distributor pursuant to section
four hundred seventy-one-d of this chapter shall be guilty of a misde-
meanor. Provided further, that any person who has twice been convicted
under this subdivision shall be guilty of a class E felony for any
subsequent violation of this section, regardless of the amount of tobac-
co products involved in such violation.
(4) For purposes of this subdivision, such person shall knowingly
transport or have in his custody, possession or under his control tobac-
co or cigars on which such taxes have not been assumed or paid by a
distributor appointed by the commissioner [of taxation and finance]
where such person has knowledge of the requirement of the tax on tobacco
products and, where to his knowledge, such taxes have not been assumed
or paid on such tobacco products by a distributor appointed by the
commissioner of taxation and finance.
[(k)] (I) Any person who falsely or fraudulently makes, alters or
counterfeits a registration certificate or sticker required under the
provisions of section four hundred eighty-a of this chapter, or causes
or procures to be falsely or fraudulently made, altered or counterfeited
any such registration certificate or sticker, or knowingly and willfully
utters, purchases, passes or tenders as true any such false, altered or
counterfeited registration certificate or sticker, and any person who
knowingly and willfully makes, causes to be made, purchases or receives
any device for forging or counterfeiting any registration certificate or
sticker required under the provisions of such section, or who knowingly
and willfully possesses any such device, shall be guilty of a class B
misdemeanor.
S 29. Section 1815 of the tax law, as amended by chapter 170 of the
laws of 1994, clause (i) of subparagraph (A) of paragraph 1 of subdivi-
sion (a) as amended by section 10, subparagraph (B) of paragraph 1 of
subdivision (a) as amended by section 11 and subparagraph (C) of para-
graph 1 of subdivision (a) as amended by section 12 of part E of chapter
60 of the laws of 2007, is amended to read as follows:
S 1815. Highway use and fuel use taxes. - (a) Violations. (1) It shall
be unlawful for any person to:
(A) (i) Use or cause or permit to be used, any public highway in this
state for the operation of a motor vehicle subject to the provisions of
article twenty-one of this chapter without first applying for and
obtaining the certificate of registration required under such article;
(ii) Use or cause or permit to be used, any public highway in this
state for the operation of a qualified motor vehicle subject to the
provisions of article twenty-one-A of this chapter without first obtain-
ing the license and decal required pursuant to such article or to carry
or cause or permit to be carried upon any qualified motor vehicle a
license or decal which has been suspended or revoked or which was issued
for a qualified motor vehicle other than the one on which carried. The
operation of any qualified motor vehicle on any public highway of this
S. 57--B 183 A. 157--B
state without carrying thereon the license or decal required under such
article shall be presumptive evidence that a license or decal has not
been obtained for such qualified motor vehicle;
(B) Operate, or cause or permit to be operated, on any public highway
any motor vehicle subject to the provisions of article twenty-one of
this chapter having an actual gross or unloaded weight in excess of the
gross or unloaded weight set forth on the certificate of registration
issued for such motor vehicle;
(C) Fail to deliver or surrender, pursuant to the provisions of arti-
cle twenty-one or twenty-one-A of this chapter or any rule or regulation
promulgated by the commissioner, a certificate of registration or
license or decal to such commissioner, or any person directed by such
commissioner to take possession thereof;
(D) Fail [to make any return under article twenty-one or twenty-one-A
of this chapter or] to keep records of operations of motor vehicles or
qualified motor vehicles as the commissioner shall prescribe;
(E) [Make any false return; or
(F)] Violate any other provision of article twenty-one or twenty-one-A
of this chapter or any rule or regulation promulgated thereunder.
(2) Any person who violates any provision of this subdivision, upon a
first conviction shall be subject to a fine of not less than one hundred
dollars or more than two hundred fifty dollars; and upon a second or
subsequent conviction to a fine of not less than two hundred fifty
dollars or more than five hundred dollars or by imprisonment for not
more than ten days. Except as otherwise provided by law such a violation
shall not be a crime and the penalty or punishment imposed therefor
shall not be deemed for any purpose a penal or criminal penalty or
punishment and shall not impose any disability upon or affect or impair
the credibility as a witness, or otherwise, of any person convicted
thereof.
(3) For the purposes of conferring jurisdiction upon courts and police
officers, and on the officers specified in subdivision four of section
2.10 of the criminal procedure law and on judicial officers generally,
such violations shall be deemed traffic infractions and for such purpose
only all provisions of law relating to traffic infractions shall apply
to such violations; provided, however, that the commissioner of motor
vehicles, any hearing officer appointed by him, or any administrative
tribunal authorized to hear and determine any charges or offenses which
are traffic infractions shall not have jurisdiction of such infractions.
(4) Upon the conviction of any person for a violation of any of the
provisions of this subdivision, the trial court or the clerk thereof
shall within forty-eight hours certify the facts of the case to the
commissioner and such certificate shall be presumptive evidence of the
facts recited therein. If any such conviction shall be reversed upon
appeal therefrom, the person whose conviction has been so reversed may
serve upon the commissioner a certified copy of the order of reversal
and the commissioner shall thereupon record the same.
(b) [Felonies. Any person who files or causes to be filed any return,
affidavit or statement required or permitted by article twenty-one or
twenty-one-A of this chapter which is willfully false or fraudulent or
who willfully fails to file a return with intent to evade the tax is
guilty of a class E felony.
(c)] An official weigh slip or ticket issued and certified by any
truck weigher in the employ of the department of transportation or by
any duly licensed weight master shall constitute prima facie evidence of
the information therein set forth and of the operation of the vehicle
S. 57--B 184 A. 157--B
therein described upon a public highway and shall be admissible before
any court in any violation proceeding or criminal proceeding.
S 30. Section 1817 of the tax law, as added by chapter 65 of the laws
of 1985, paragraph 1 of subdivision (c) as amended by chapter 411 of the
laws of 1986, subdivision (e) as amended by chapter 765 of the laws of
1985, subdivision (g) as amended by chapter 412 of the laws of 1986,
subdivision (h) as amended by chapter 275 of the laws of 1986, subdivi-
sion (i) as amended by chapter 261 of the laws of 1988, subdivision (k)
as amended by chapter 3 of the laws of 2004, subdivisions (l) and (s) as
amended and subdivisions (q) and (r) as added by chapter 2 of the laws
of 1995, subdivision (o) as added by chapter 61 of the laws of 1989,
subdivision (p) as added by chapter 810 of the laws of 1992 and subdivi-
sion (t) as added by section 3 of part A of chapter 35 of the laws of
2006, is amended to read as follows:
S 1817. Sales and compensating use taxes.--(a) [Willful failure to
file a return or report.--Any person required under article twenty-eight
of this chapter to make a return or report (other than a return of
compensating use tax), who willfully fails to make such return or
report, at the time or times so required, shall be guilty of a misdemea-
nor.
(b) Fraudulent returns, reports, statements or other documents.--(1)
Any person who willfully makes and subscribes any return, report, state-
ment or other document which is required to be filed with or furnished
to the tax commission or to any person, pursuant to the provisions of
article twenty-eight of this chapter, which he does not believe to be
true and correct as to every material matter shall be guilty of a misde-
meanor.
(2) Any person who willfully delivers or discloses to the tax commis-
sion or to any person, pursuant to the provisions of article twenty-
eight of this chapter, any list, return, report, account, statement or
other document known by him to be fraudulent or to be false as to any
material matter shall be guilty of a misdemeanor.
(3) For purposes of this section, the omission by any person of any
material matter with intent to deceive shall constitute the delivery or
disclosure of a document known by him to be fraudulent or to be false as
to any material matter.
(c) Failure to collect tax.--(1) Any person who willfully fails to
collect the tax imposed under article twenty-eight of this chapter from
a customer shall, in addition to other penalties provided by law, be
guilty of a misdemeanor.
(2) A person is guilty of failure to collect sales tax when he fails
to collect a sales tax required to be collected by article twenty-eight
of this chapter and when (a) he does so with intent to defraud the state
or a political subdivision thereof and thereby deprives the state or a
political subdivision thereof, or both together, of ten thousand dollars
or more, or (b) he does so with intent to defraud the state or a poli-
tical subdivision thereof through a common scheme or plan consisting of
ten or more failures to collect the required tax on sales in the amount
of one hundred dollars or more each. Failure to collect sales tax under
this paragraph is a class E felony.
(d)] Any person required to obtain a certificate of authority under
section eleven hundred thirty-four of this chapter who, without possess-
ing a valid certificate of authority, willfully (1) sells tangible
personal property or services subject to tax, receives amusement charges
or operates a hotel, (2) purchases or sells tangible personal property
for resale, or (3) sells automotive fuel; and any person who fails to
S. 57--B 185 A. 157--B
surrender a certificate of authority as required by such article shall
be guilty of a misdemeanor.
[(e)] (B) Any person required to obtain a certificate of authority
under section eleven hundred thirty-four of this chapter who within five
years after a determination by the tax commission, pursuant to such
section, to suspend, revoke or refuse to issue a certificate of authori-
ty has become final, and without possession of a valid certificate of
authority (1) sells tangible personal property or services subject to
tax, receives amusement charges or operates a hotel, (2) purchases or
sells tangible personal property for resale, or (3) sells automotive
fuel, shall be guilty of a misdemeanor. It shall be an affirmative
defense that such person performed the acts described in this subdivi-
sion without knowledge of such determination. Any person who violates a
provision of this subdivision, upon conviction, shall be subject to a
fine in any amount authorized by this article, but not less than five
hundred dollars, in addition to any other penalty provided by law.
[(f)] (C) Any person who willfully fails to file a notice of a show as
required by article twenty-eight of this chapter or who willfully rents,
leases or grants a license to use space for a show or operates a show
without obtaining a permit pursuant to paragraph two of subdivision (b)
of section eleven hundred thirty-four of this chapter shall be guilty of
a misdemeanor.
[(g)] (D) Any person (1) who willfully fails to charge separately the
tax imposed under article twenty-eight of this chapter or to state such
tax separately on any bill, statement, memorandum or receipt issued or
employed by him upon which the tax is required to be stated separately
as provided in subdivision (a) of section eleven hundred thirty-two of
this chapter; or (2) who shall refer or cause reference to be made to
such tax in a form or manner other than that required by such article
twenty-eight, shall be guilty of a misdemeanor.
[(h)] (E) Any person willfully failing to file a bond or other securi-
ty or deposit taxes in any banking institution where such filing or
deposit is required pursuant to the provisions of paragraph two or three
of subdivision (e) of section eleven hundred thirty-seven of this chap-
ter shall be guilty of a misdemeanor.
[(i)] (F) Any owner of a filling station who shall willfully and know-
ingly have in his custody, possession or under his control any motor
fuel or diesel motor fuel on which (1) the prepaid tax imposed by
section eleven hundred two of this chapter has not been assumed or paid
by a distributor registered as such under article twelve-A of this chap-
ter or (2) the prepaid tax imposed by section eleven hundred two of this
chapter was required to have been passed through to him and has not been
included in the cost of such fuel to him, shall in either case, be guil-
ty of a class E felony. For purposes of this subdivision, such owner
shall willfully and knowingly have in his custody, possession or under
his control any motor fuel or diesel motor fuel on which such tax has
not been assumed or paid by a distributor registered as such where such
owner has knowledge of the requirement that such tax be paid and where,
to his knowledge, such tax has not been assumed or paid by such regis-
tered distributor on such motor fuel or diesel motor fuel. Such owner
shall willfully and knowingly have in his custody, possession or under
his control motor fuel or diesel motor fuel on which such tax is
required to have been passed through to him and has not been included in
the cost to him where such owner has knowledge of the requirement that
such tax be passed through and where to his knowledge such tax has not
been so included.
S. 57--B 186 A. 157--B
[(j)] (G) Any person who willfully fails to keep any records required
by article twenty-eight of this chapter shall be guilty of a misdemea-
nor.
[(k)] (H) The penalties provided for in this section shall not
preclude prosecution pursuant to the penal law with respect to the will-
ful failure of any person to pay over to the state any sales tax imposed
by section eleven hundred four, eleven hundred five, eleven hundred
seven, eleven hundred eight or eleven hundred nine of this chapter or by
any local law adopted by any city or county pursuant to article twenty-
nine of this chapter, whenever such person has been required to collect
and has collected any such sales tax. In any such prosecution under the
penal law, a person who has been required to collect and has collected
any such tax shall be deemed to have acted in a fiduciary character with
respect to the state or a political subdivision thereof, and the tax
collected shall be deemed to have been entrusted to such person by the
state or a political subdivision thereof.
[(l) Any person who willfully fails to pay sales or compensating use
tax, or to file a return of compensating use tax imposed by or pursuant
to the authority of article twenty-eight or twenty-nine of this chapter,
with respect to the purchase or use of automotive fuel or cigarettes
shall be guilty of a misdemeanor.
(m) Any person who willfully issues a false or fraudulent resale or
other exemption certificate or document with intent to evade tax shall
be guilty of a misdemeanor.
(n) Any person who, being duly subpoenaed, pursuant to section one
hundred seventy-four of this chapter or the provisions of the civil
practice law and rules, in connection with a matter arising under arti-
cle twenty-eight of this chapter, to attend as a witness or to produce
books, accounts, records, memoranda, documents or other papers who (i)
fails or refuses to attend without lawful excuse, (ii) refuses to be
sworn, (iii) refuses to answer any material and proper question, or (iv)
refuses, after reasonable notice, to produce books, accounts, records,
memoranda, documents or other papers in his possession or under his
control which constitute material and proper evidence shall be guilty of
a misdemeanor.
(o)] (I) Any entertainment promoter who willfully authorizes an enter-
tainment vendor, to whom such promoter has either directly or indirectly
rented, leased, granted a license to use or under any other arrangement
made space available in order for such vendor to make taxable sales of
tangible personal property at an entertainment event, without first
requiring such vendor to obtain a certificate of authority or who will-
fully fails to obtain an entertainment promoter certificate as required
under article twenty-eight of this chapter shall be guilty of a misde-
meanor.
[(p)] (J) Any person described in subdivision (a) of section eleven
hundred forty-two-A of this chapter who willfully fails to include all
information required under such section on a ticket or other memorandum
as described in such section shall be guilty of a misdemeanor.
[(q)] (K) Any owner of a place of business selling cigarettes at
retail who shall willfully and knowingly have in such owner's custody or
possession or under such owner's control any cigarettes on which (1) the
prepaid tax imposed by section eleven hundred three of this chapter has
not been assumed or paid by an agent licensed as such under article
twenty of this chapter or (2) the prepaid tax imposed by section eleven
hundred three of this chapter was required to have been passed through
to such owner and has not been included in the cost of such cigarettes
S. 57--B 187 A. 157--B
to such owner shall, in either case, be guilty of a misdemeanor.
Provided, however, if the amount of cigarettes is twenty thousand or
more, such owner shall be guilty of a class E felony. For purposes of
this subdivision, such owner shall willfully and knowingly have in such
owner's custody or possession or under such owner's control any ciga-
rettes on which such tax has not been assumed or paid by an agent
licensed as such under such article twenty where such owner has know-
ledge of the requirement that such tax be assumed or paid and where, to
such owner's knowledge, such tax has not been assumed or paid by such an
agent on such cigarettes. Such owner shall willfully and knowingly have
in such owner's custody or possession or under such owner's control
cigarettes on which such tax is required to have been passed through to
such owner and has not been included in the cost to such owner where
such owner has knowledge of the requirement that such tax be passed
through and where to such owner's knowledge such tax has not been so
included.
[(r)] (L) Any person who falsely or fraudulently makes, alters or
counterfeits any stamp prescribed by the commissioner under the
provisions of article twenty-eight or pursuant to the authority of arti-
cle twenty-nine of this chapter, or causes or procures to be falsely or
fraudulently made, altered or counterfeited any such stamp, or knowingly
and willfully utters, purchases, passes or tenders as true any such
false, altered or counterfeited stamp, or knowingly and willfully
possesses any cigarettes in packages bearing any such false, altered or
counterfeited stamp, and any person who knowingly and willfully makes,
causes to be made, purchases or receives any device for forging or coun-
terfeiting any stamp prescribed by the commissioner under the provisions
of article twenty-eight or pursuant to the authority of article twenty-
nine of this chapter, or who knowingly and willfully possesses any such
device, shall be guilty of a class E felony. For the purposes of this
subdivision, the words "stamp prescribed by the commissioner" shall
include a stamp, impression or imprint made by a metering machine, the
design of which has been approved by the commissioner.
[(s)] (M) All of the provisions of this section shall apply for
purposes of any taxes administered by the commissioner and imposed
pursuant to the authority of article twenty-nine of this chapter and for
the purposes of any taxes imposed by article twenty-eight-A of this
chapter. References in subdivisions [(i), (l), (q) and (r)] (F), (K),
AND (L) of this section to taxes imposed by or pursuant to the authority
of article twenty-eight or twenty-nine of this chapter include the taxes
required to be prepaid pursuant to section eleven hundred two or eleven
hundred three of this chapter.
[(t)] (N) (1) Every person engaged in the retail sale of motor fuel
and/or diesel motor fuel or a distributor of such fuels, as defined in
article twelve-A of this chapter, shall comply with the provisions of
section three hundred ninety-two-i of the general business law by reduc-
ing the prices charged for motor fuel and diesel motor fuel in an amount
equal to any reduction in taxes prepaid by the distributor or imposed on
retail customers resulting from computing sales and compensating use
taxes at a cents per gallon rate pursuant to the provisions of paragraph
two of subdivision (e) and subdivision (m) of section one thousand one
hundred eleven of this chapter.
(2) The commissioner, in cooperation with the state consumer
protection board, shall monitor the prices charged by persons engaged in
the retail sale or distribution of motor fuel and diesel motor fuel.
S. 57--B 188 A. 157--B
(3) Upon a finding by the commissioner that a person engaged in the
retail sale of motor fuel and/or diesel motor fuel or in the distrib-
ution of such fuels has violated the provisions of section three hundred
ninety-two-i of the general business law, the commissioner shall provide
notice of such violation to such person and hold a hearing on such
violation, with an opportunity for the accused to be heard, not less
than ten days after notice is provided. A violation of section three
hundred ninety-two-i of the general business law shall subject the
person violating such section to a civil penalty of up to five thousand
dollars for each day such violation occurs.
S 31. Section 1818 of the tax law, as added by chapter 65 of the laws
of 1985, is amended to read as follows:
S 1818. Real estate transfer tax.--Any willful act or omission, by any
person which constitutes a violation of any provision of article thir-
ty-one of this chapter [or any willful attempt to evade or defeat the
tax imposed by such article] shall constitute a misdemeanor.
S 32. Section 1820 of the tax law, as added by chapter 833 of the laws
of 1987, is amended to read as follows:
S 1820. Boxing and wrestling exhibitions tax. Any willful act or omis-
sion by any person which constitutes a violation of any provision of
article nineteen of this chapter [or any willful attempt to evade or
defeat the tax imposed by such article] shall constitute a misdemeanor.
S 33. The tax law is amended by adding three new sections 1831, 1832
and 1833 to read as follows:
S 1831. FAILURE TO OBEY SUBPOENAS. ANY PERSON WHO IS DULY SUBPOENAED,
PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR OF THIS CHAPTER OR THE
PROVISIONS OF THE CIVIL PRACTICE LAW AND RULES, IN CONNECTION WITH ANY
MATTER ARISING UNDER THIS CHAPTER, OR ANY RELATED INCOME OR EARNINGS TAX
STATUTE, TO ATTEND AS A WITNESS OR TO PRODUCE BOOKS, ACCOUNTS, RECORDS,
MEMORANDA, DOCUMENTS OR OTHER PAPERS, AND WHO (1) FAILS OR REFUSES TO
ATTEND WITHOUT LAWFUL EXCUSE, (2) REFUSES TO BE SWORN, (3) WITHOUT
ASSERTING A VALID LEGAL PRIVILEGE REFUSES TO ANSWER ANY MATERIAL AND
PROPER QUESTION, OR (4) WITHOUT ASSERTING A VALID LEGAL PRIVILEGE
REFUSES, AFTER REASONABLE NOTICE, TO PRODUCE BOOKS, ACCOUNTS, RECORDS,
MEMORANDA, DOCUMENTS OR OTHER PAPERS THAT CONSTITUTE MATERIAL AND PROPER
EVIDENCE IN HIS OR HER POSSESSION OR UNDER HIS OR HER CONTROL, SHALL BE
GUILTY OF A MISDEMEANOR.
S 1832. NON-PREEMPTION; PENAL LAW ANTICIPATORY OFFENSES AND ACCESSO-
RIAL LIABILITY APPLY. (A) UNLESS EXPRESSLY STATED OTHERWISE, THE PENAL-
TIES PROVIDED IN THIS CHAPTER SHALL NOT PRECLUDE PROSECUTION FOR ANY
OFFENSE UNDER THE PENAL LAW OR ANY OTHER CRIMINAL STATUTE.
(B) THE OFFENSES SPECIFIED IN TITLE G OF THE PENAL LAW AND THE
PROVISIONS OF ARTICLE TWENTY OF THE PENAL LAW ARE APPLICABLE TO ALL
OFFENSES DEFINED IN THIS CHAPTER.
S 1833. TAX PREPARER REGISTRATION. A COMMERCIAL TAX RETURN PREPARER,
AS DEFINED BY PARAGRAPH THREE OF SUBDIVISION (A) OF SECTION THIRTY-TWO
OF THIS CHAPTER, WHO WILLFULLY AND WITH THE INTENT TO EVADE THE REQUIRE-
MENTS OF SECTION THIRTY-TWO OF THIS CHAPTER, FAILS TO SIGN HIS OR HER
NAME TO ANY TAX RETURN THAT REQUIRES A SIGNATURE OR FAILS TO REGISTER AS
REQUIRED BY SUCH SECTION THIRTY-TWO, WILL BE GUILTY OF A CLASS A MISDE-
MEANOR.
S 34. This act shall take effect immediately and apply to offenses
committed on and after such effective date.
SUBPART J
S. 57--B 189 A. 157--B
Section 1. Paragraph (d) of subdivision 1 of section 289-b of the tax
law, as amended by chapter 61 of the laws of 1989, is amended to read as
follows:
(d) If the failure to pay any tax within the time required by or
pursuant to this article is due to fraud, in lieu of the penalties and
interest provided for in paragraphs (a) and (b) of this subdivision,
there shall be added to the tax (i) a penalty of [fifty per centum of]
TWO TIMES the amount of tax due, plus (ii) interest on such unpaid tax
at the underpayment rate set by the commissioner of taxation and finance
pursuant to subdivision twenty-sixth of section one hundred seventy-one
of this chapter for the period beginning on the last day prescribed by
this article for the payment of such tax (determined without regard to
any extension of time for paying) and ending on the day on which such
tax is paid[, plus (iii) for the period beginning on the last day
prescribed by this article for the payment of such tax (determined with-
out regard to any extension of time for paying) and ending on the day
the amount of tax due is finally determined or, if earlier, on the day
on which such tax is paid, an amount equal to fifty per centum of the
interest payable under subparagraph (ii) of this paragraph on that
portion of the unpaid tax which is attributable to fraud].
S 2. Subdivision 1 of section 289-b of the tax law is amended by
adding a new paragraph (e-1) to read as follows:
(E-1) IN ADDITION TO ANY OTHER PENALTIES THAT MAY BE IMPOSED BY LAW,
ANY OF THE FOLLOWING PENALTIES MAY BE IMPOSED.
(I) ANY PERSON WHO FAILS TO FILE AN INFORMATIONAL RETURN UNDER THIS
ARTICLE ON OR BEFORE THE PRESCRIBED DATE, MUST PAY A PENALTY OF FIFTEEN
HUNDRED DOLLARS FOR THE FIRST VIOLATION AND A PENALTY OF THREE THOUSAND
DOLLARS FOR EACH SUBSEQUENT VIOLATION, UNLESS IT CAN BE SHOWN THAT SUCH
FAILURE IS DUE TO REASONABLE CAUSE AND NOT WILLFUL NEGLECT.
(II) ANY PERSON WHO FAILS TO FILE AN INFORMATIONAL RETURN WITHIN SIXTY
DAYS OF THE DATE PRESCRIBED FOR FILING MUST PAY A PENALTY OF TWO THOU-
SAND DOLLARS FOR THE FIRST VIOLATION AND A PENALTY OF FOUR THOUSAND
DOLLARS FOR EACH SUBSEQUENT VIOLATION, UNLESS IT CAN BE SHOWN THAT SUCH
FAILURE IS DUE TO REASONABLE CAUSE AND NOT WILLFUL NEGLECT.
(III) ANY PERSON WHO FAILS TO FILE A COMPLETE INFORMATIONAL RETURN
MUST PAY A PENALTY OF FIFTEEN HUNDRED DOLLARS FOR THE FIRST VIOLATION
AND A PENALTY OF THREE THOUSAND DOLLARS FOR EACH SUBSEQUENT VIOLATION,
UNLESS IT CAN BE SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE AND
NOT WILLFUL NEGLECT.
(IV) IF ANY PERSON MAKES A STATEMENT ON AN INFORMATIONAL RETURN AND,
AS OF THE TIME OF THE STATEMENT, THERE WAS NO REASONABLE BASIS FOR THAT
STATEMENT, THAT PERSON MUST PAY A PENALTY OF TWO THOUSAND DOLLARS FOR
THE FIRST VIOLATION AND A PENALTY OF FOUR THOUSAND DOLLARS FOR EACH
SUBSEQUENT VIOLATION.
S 3. Paragraph (d) of subdivision 1 of section 433 of the tax law, as
amended by chapter 61 of the laws of 1989, is amended to read as
follows:
(d) If the failure to pay any tax within the time required by or
pursuant to this article is due to fraud, in lieu of the penalties and
interest provided for in paragraphs (a) and (b) of this subdivision,
there shall be added to the tax (i) a penalty of [fifty per centum of]
TWO TIMES the amount of tax due, plus (ii) interest on such unpaid tax
at the underpayment rate set by the commissioner of taxation and finance
pursuant to subdivision twenty-sixth of section one hundred seventy-one
of this chapter for the period beginning on the last day prescribed by
this article for the payment of such tax (determined without regard to
S. 57--B 190 A. 157--B
any extension of time for paying) and ending on the day on which such
tax is paid[, plus (iii) for the period beginning on the last day
prescribed by this article for the payment of such tax (determined with-
out regard to any extension of time for paying) and ending on the day
the amount of tax due is finally determined or, if earlier, on the day
on which such tax is paid, an amount equal to fifty per centum of the
interest payable under subparagraph (ii) of this paragraph on that
portion of the unpaid tax which is attributable to fraud].
S 4. Subparagraph (iv) of paragraph (a) of subdivision 1 of section
481 of the tax law, as amended by chapter 61 of the laws of 1989, is
amended to read as follows:
(iv) If the failure to pay any tax within the time required by or
pursuant to this article is due to fraud, in lieu of the penalties and
interest provided for in subparagraphs (i) and (ii) of this paragraph,
there shall be added to the tax (A) a penalty of [fifty per centum of]
TWO TIMES the amount of tax due, plus (B) interest on such unpaid tax at
the underpayment rate set by the commissioner of taxation and finance
pursuant to subdivision twenty-sixth of section one hundred seventy-one
of this chapter for the period beginning on the last day prescribed by
this article for the payment of such tax (determined without regard to
any extension of time for paying) and ending on the day on which such
tax is paid[, plus (C) for the period beginning on the last day
prescribed by this article for the payment of such tax (determined with-
out regard to any extension of time for paying) and ending on the day
the amount of tax due is finally determined or, if earlier, on the day
on which such tax is paid, an amount equal to fifty per centum of the
interest payable under clause (B) of this subparagraph on that portion
of the unpaid tax which is attributable to fraud].
S 5. Paragraph (d) of subdivision 1 of section 512 of the tax law, as
amended by chapter 61 of the laws of 1989, is amended to read as
follows:
(d) If the failure to pay any tax within the time required by or
pursuant to this article is due to fraud, in lieu of the penalties and
interest provided for in paragraphs (a) and (b) of this subdivision,
there shall be added to the tax (i) a penalty of [fifty per centum of]
TWO TIMES the amount of tax due, plus (ii) interest on such unpaid tax
at the underpayment rate set by the commissioner of taxation and finance
pursuant to subdivision twenty-sixth of section one hundred seventy-one
of this chapter for the period beginning on the last day prescribed by
this article for the payment of such tax (determined without regard to
any extension of time for paying) and ending on the day on which such
tax is paid[, plus (iii) for the period beginning on the last day
prescribed by this article for the payment of such tax (determined with-
out regard to any extension of time for paying) and ending on the day
the amount of tax due is finally determined or, if earlier, on the day
on which such tax is paid, an amount equal to fifty per centum of the
interest payable under subparagraph (ii) of this paragraph on that
portion of the unpaid tax which is attributable to fraud].
S 6. Subdivision (d) of section 527 of the tax law, as added by chap-
ter 170 of the laws of 1994, is amended to read as follows:
(d) Fraud. If the failure to pay any tax within the time required by
or pursuant to this article is due to fraud, in lieu of the penalties
provided for in subdivision (b) of this section, there shall be added to
the tax (1) a penalty of [fifty percent of] TWO TIMES the amount of tax
due[, plus (2) for the period beginning on the last day prescribed by
this article for the payment of such tax (determined without regard to
S. 57--B 191 A. 157--B
any extension of time for paying) and ending on the day the amount of
tax due is finally determined or, if earlier, on the day on which such
tax is paid, an interest penalty equal to fifty percent of the interest
payable under subdivision (a) of this section on that portion of the
unpaid tax which is attributable to fraud].
S 7. Paragraph 1 of subsection (e) of section 685 of the tax law, as
amended by chapter 65 of the laws of 1985, is amended to read as
follows:
(1) If any part of a deficiency is due to fraud, there shall be added
to the tax an amount equal to [fifty percent of] TWO TIMES the deficien-
cy.
S 8. Paragraph 2 of subsection (e) of section 685 of the tax law is
REPEALED and paragraphs 3 and 4 are renumbered paragraphs 2 and 3.
S 9. Subsection (q) of section 685 of the tax law, as added by chapter
65 of the laws of 1985, is amended to read as follows:
(q) Frivolous tax returns AND SPECIFIED FRIVOLOUS SUBMISSIONS.-- (1)
If any individual files what purports to be a return of any tax imposed
by this article but which does not contain information on which the
substantial correctness of the self-assessment may be judged, or
contains information that on its face indicates that the self-assessment
is substantially incorrect; and such conduct is due to a position which
is frivolous, INCLUDING A POSITION IDENTIFIED AS FRIVOLOUS UNDER PARA-
GRAPH THREE OF THIS SUBSECTION, or an intent [(which appears on the
purported return)] to delay or impede the administration of this arti-
cle, then such individual shall pay a penalty not exceeding five
[hundred] THOUSAND dollars. This penalty shall be in addition to any
other penalty provided by law.
(2) PENALTY FOR SPECIFIED FRIVOLOUS SUBMISSIONS. (A) ANY PERSON WHO
SUBMITS A SPECIFIED FRIVOLOUS SUBMISSION SHALL PAY A PENALTY OF FIVE
THOUSAND DOLLARS. THIS PENALTY SHALL BE IN ADDITION TO ANY OTHER PENALTY
PROVIDED BY LAW.
(B) THE TERM "SPECIFIED FRIVOLOUS SUBMISSION" MEANS A SPECIFIED
SUBMISSION IF ANY PORTION OF THAT SUBMISSION (I) IS BASED ON A POSITION
THAT THE COMMISSIONER HAS IDENTIFIED AS FRIVOLOUS UNDER PARAGRAPH THREE
OF THIS SUBDIVISION, OR (II) REFLECTS A DESIRE TO DELAY OR IMPEDE THE
ADMINISTRATION OF THIS CHAPTER.
(C) THE TERM "SPECIFIED SUBMISSION" MEANS A REQUEST FOR CONCILIATION
CONFERENCE, A PETITION TO THE DIVISION OF TAX APPEALS, AN APPLICATION
FOR AN INSTALLMENT PAYMENT AGREEMENT, OR AN OFFER IN COMPROMISE.
(D) IF THE COMMISSIONER PROVIDES AN INDIVIDUAL WITH NOTICE THAT A
SUBMISSION IS A SPECIFIED FRIVOLOUS SUBMISSION AND THAT PERSON WITHDRAWS
THE SUBMISSION WITHIN THIRTY DAYS AFTER SUCH NOTICE, THE PENALTY IMPOSED
UNDER THIS PARAGRAPH WILL NOT APPLY WITH RESPECT TO THAT SUBMISSION.
(3) LISTING OF FRIVOLOUS POSITIONS. THE COMMISSIONER WILL PRESCRIBE
(AND PERIODICALLY REVISE) A LIST OF POSITIONS THAT THE COMMISSIONER HAS
IDENTIFIED AS FRIVOLOUS FOR PURPOSES OF THIS SUBSECTION.
(4) REDUCTION OF PENALTY. THE COMMISSIONER MAY REDUCE THE AMOUNT OF
ANY PENALTY IMPOSED UNDER THIS SECTION IF THE COMMISSIONER DETERMINES
THAT SUCH A REDUCTION WOULD PROMOTE COMPLIANCE WITH AND ADMINISTRATION
OF THIS CHAPTER.
S 10. Section 685 of the tax law is amended by adding a new subsection
(cc) to read as follows:
(CC) FALSE OR FRAUDULENT DOCUMENT PENALTY. ANY TAXPAYER THAT SUBMITS A
FALSE OR FRAUDULENT DOCUMENT TO THE DEPARTMENT WILL BE SUBJECT TO A
PENALTY OF ONE HUNDRED DOLLARS PER DOCUMENT SUBMITTED, OR FIVE HUNDRED
S. 57--B 192 A. 157--B
DOLLARS PER TAX RETURN SUBMITTED. THIS PENALTY WILL BE IN ADDITION TO
ANY OTHER PENALTY OR ADDITION PROVIDED BY LAW.
S 11. Paragraph 1 of subsection (f) of section 1085 of the tax law, as
amended by chapter 65 of the laws of 1985, is amended to read as
follows:
(1) If any part of a deficiency is due to fraud, there shall be added
to the tax an amount equal to [fifty percent of] TWO TIMES the deficien-
cy.
S 12. Paragraph 2 of subsection (f) of section 1085 of the tax law is
REPEALED and paragraph 3 is renumbered paragraph 2.
S 13. Section 1085 of the tax law is amended by adding a new
subsection (u) to read as follows:
(U) FALSE OR FRAUDULENT DOCUMENT PENALTY. ANY TAXPAYER THAT SUBMITS A
FALSE OR FRAUDULENT DOCUMENT TO THE DEPARTMENT WILL BE SUBJECT TO A
PENALTY OF ONE HUNDRED DOLLARS PER DOCUMENT SUBMITTED, OR FIVE HUNDRED
DOLLARS PER TAX RETURN SUBMITTED. THIS PENALTY WILL BE IN ADDITION TO
ANY OTHER PENALTY OR ADDITION PROVIDED BY LAW.
S 14. Paragraph 2 of subdivision (a) of section 1145 of the tax law,
as amended by section 12 of part R of chapter 85 of the laws of 2002, is
amended to read as follows:
(2) If the failure to pay or pay over any tax to the commissioner
within the time required by this article is due to fraud, in lieu of the
penalties and interest provided for in subparagraphs (i) and (ii) of
paragraph one of this subdivision, there shall be added to the tax (i) a
penalty of [fifty percent of] TWO TIMES the amount of the tax due, plus
(ii) interest on such unpaid tax at the rate of fourteen percent per
annum or the underpayment rate of interest set by the commissioner
pursuant to section eleven hundred forty-two OF THIS PART, whichever is
greater, for the period beginning on the last day prescribed by this
article for the payment of such tax (determined without regard to any
extension of time for paying) and ending on the day on which such tax is
paid[, plus (iii) for the period beginning on the last day prescribed by
this article for the payment of such tax (determined without regard to
any extension of time for paying) and ending on the day the amount of
tax due is finally determined or, if earlier, on the day on which such
tax is paid, an amount equal to fifty percent of the interest payable
under subparagraph (ii) of this paragraph, on that portion of the unpaid
tax which is attributable to fraud].
S 15. Section 1145 of the tax law is amended by adding two new subdi-
visions (i) and (j) to read as follows:
(I) AIDING OR ASSISTING IN THE GIVING OF FRAUDULENT RETURNS, REPORTS,
STATEMENTS OR OTHER DOCUMENTS. ANY PERSON WHO, WITH THE INTENT THAT TAX
BE EVADED, FOR A FEE OR OTHER COMPENSATION OR AS AN INCIDENT TO THE
PERFORMANCE OF OTHER SERVICES FOR WHICH THAT PERSON RECEIVES COMPEN-
SATION, AIDS OR ASSISTS IN, OR PROCURES, COUNSELS, OR ADVISES THE PREPA-
RATION OR PRESENTATION UNDER THIS ARTICLE, OR IN CONNECTION WITH ANY
MATTER ARISING UNDER THIS ARTICLE, OF ANY RETURN, REPORT, DECLARATION,
STATEMENT OR OTHER DOCUMENT THAT IS FRAUDULENT OR FALSE AS TO ANY MATE-
RIAL MATTER, OR SUPPLIES ANY FALSE OR FRAUDULENT INFORMATION, WHETHER OR
NOT SUCH FALSITY OR FRAUD IS WITH THE KNOWLEDGE OR CONSENT OF THE PERSON
AUTHORIZED OR REQUIRED TO PRESENT THAT RETURN, REPORT, DECLARATION,
STATEMENT OR OTHER DOCUMENT, WILL PAY A PENALTY NOT EXCEEDING FIVE THOU-
SAND DOLLARS. THE DEFINITIONS IN SUBSECTION (L) OF SECTION TEN HUNDRED
EIGHTY-FIVE OF THIS CHAPTER APPLY FOR THE PURPOSES OF THIS PENALTY.
(J) FALSE OR FRAUDULENT DOCUMENT PENALTY. ANY TAXPAYER THAT SUBMITS A
FALSE OR FRAUDULENT DOCUMENT TO THE DEPARTMENT WILL BE SUBJECT TO A
S. 57--B 193 A. 157--B
PENALTY OF ONE HUNDRED DOLLARS PER DOCUMENT SUBMITTED, OR FIVE HUNDRED
DOLLARS PER TAX RETURN SUBMITTED. THIS PENALTY WILL BE IN ADDITION TO
ANY OTHER PENALTY PROVIDED BY LAW.
S 16. Subdivision (iii) of section 12 of part N of chapter 61 of the
laws of 2005 amending the tax law relating to certain transactions and
related information, as amended by section 1 of part DD-1 of chapter 57
of the laws of 2008, is amended to read as follows:
(iii) provided, further, that the provisions of this act, EXCEPT
SECTION FIVE OF THIS ACT, shall expire and be deemed repealed July 1,
2011. The commissioner of taxation and finance shall cause to be
prepared a written report on the tax shelter law. Notwithstanding any
other provision of law to the contrary, such report shall include, but
not be limited to, statistical information regarding the listed and
reportable transactions and avoidance transactions under this act. A
copy of such report shall be delivered to the governor, the temporary
president of the senate, and the speaker of the assembly no later than
April 1, 2007; provided, that, such expiration and repeal shall not
affect any requirement imposed pursuant to this act.
S 17. This act shall take effect immediately and apply to returns and
other documents filed or required to be filed and actions taken and
omissions occurring on or after the date this act becomes a law;
provided however, that sections seven through thirteen of this act shall
apply to taxable years beginning on or after January 1, 2009.
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 date of Subparts A through J of this act shall
be as specifically set forth in the last section of such Subparts.
PART W-1
Section 1. Subsection (f) of section 615 of the tax law, as added by
chapter 28 of the laws of 1987, is amended to read as follows:
(f) The New York itemized deduction otherwise allowable under this
section shall be reduced by the sum of the amounts determined under
paragraphs one [and], two AND THREE of this subsection.
(1) An amount equal to the New York itemized deduction otherwise
allowable under subsection (a) of this section, multiplied by a percent-
age, such percentage to be determined by multiplying, for taxable years
beginning in nineteen hundred eighty-eight, ten percent, and for taxable
years beginning after nineteen hundred eighty-eight, twenty-five
percent, by a fraction,
(A) in the case of an unmarried individual or married individual
filing a separate return, the numerator of which is the lesser of fifty
thousand dollars or the excess of such individual's New York adjusted
gross income over one hundred thousand dollars and the denominator of
which is fifty thousand dollars;
(B) in the case of a married individual filing a joint return or a
surviving spouse, the numerator of which is the lesser of fifty thousand
S. 57--B 194 A. 157--B
dollars or the excess of such individual's New York adjusted gross
income over two hundred thousand dollars and the denominator of which is
fifty thousand dollars;
(C) in the case of a head of household, the numerator of which is the
lesser of fifty thousand dollars or the excess of such individual's New
York adjusted gross income over one hundred fifty thousand dollars and
the denominator of which is fifty thousand dollars.
(2) An amount equal to the New York itemized deduction of an individ-
ual otherwise allowable under subsection (a) of this section, multiplied
by a percentage, such percentage to be determined by multiplying, for
taxable years beginning in nineteen hundred eighty-eight, ten percent,
and for taxable years beginning after nineteen hundred eighty-eight,
twenty-five percent, by a fraction, the numerator of which is the lesser
of fifty thousand dollars or the excess of such individual's New York
adjusted gross income over four hundred seventy-five thousand dollars
and the denominator of which is fifty thousand dollars.
(3) WITH RESPECT TO AN INDIVIDUAL WHOSE NEW YORK ADJUSTED GROSS INCOME
IS OVER ONE MILLION DOLLARS, AN AMOUNT EQUAL TO THE NEW YORK ITEMIZED
DEDUCTION OF AN INDIVIDUAL OTHERWISE ALLOWABLE UNDER SUBSECTION (A) OF
THIS SECTION, EXCEPT THE PORTION OF THE DEDUCTION ATTRIBUTABLE TO ANY
CHARITABLE CONTRIBUTION ALLOWED UNDER SECTION ONE HUNDRED SEVENTY OF THE
INTERNAL REVENUE CODE, MULTIPLIED BY FIFTY PERCENT, FOR TAXABLE YEARS
BEGINNING AFTER TWO THOUSAND EIGHT.
S 2. Clause (ii) of subparagraph (B) of paragraph 3 of subsection (c)
of section 685 of the tax law, as amended by section 2 of part Y3 of
chapter 62 of the laws of 2003, is amended to read as follows:
(ii) one hundred percent of the tax shown on the return of the indi-
vidual for the preceding taxable year. Provided, however, the tax shown
on such return for taxable years beginning in two thousand two shall be
the tax calculated as if such years began in two thousand three.
PROVIDED FURTHER, HOWEVER, THAT THE TAX SHOWN ON SUCH RETURN FOR TAXABLE
YEARS BEGINNING IN TWO THOUSAND EIGHT SHALL BE CALCULATED AS IF PARA-
GRAPH THREE OF SUBSECTION (F) OF SECTION SIX HUNDRED FIFTEEN OF THIS
ARTICLE HAS BEEN IN EFFECT FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND
EIGHT.
S 3. Subdivision (f) of section 11-1715 of the administrative code of
the city of New York, as added by chapter 333 of the laws of 1987, is
amended to read as follows:
(f) The city itemized deduction otherwise allowable under this section
shall be reduced by the sum of the amounts determined under paragraphs
one [and], two AND THREE of this subdivision.
(1) An amount equal to the city itemized deduction otherwise allowable
under subdivision (a) of this section, multiplied by a percentage, such
percentage to be determined by multiplying, for taxable years beginning
in nineteen hundred eighty-eight, ten percent, and for taxable years
beginning after nineteen hundred eighty-eight, twenty-five percent, by a
fraction,
(A) in the case of an unmarried individual or married individual
filing a separate return, the numerator of which is the lesser of fifty
thousand dollars or the excess of such individual's city adjusted gross
income over one hundred thousand dollars and the denominator of which is
fifty thousand dollars;
(B) in the case of a married individual filing a joint return or a
surviving spouse, the numerator of which is the lesser of fifty thousand
dollars or the excess of such individual's city adjusted gross income
S. 57--B 195 A. 157--B
over two hundred thousand dollars and the denominator of which is fifty
thousand dollars;
(C) in the case of a head of household, the numerator of which is the
lesser of fifty thousand dollars or the excess of such individual's city
adjusted gross income over one hundred fifty thousand dollars and the
denominator of which is fifty thousand dollars.
(2) An amount equal to the city itemized deduction of an individual
otherwise allowable under subdivision (a) of this section, multiplied by
a percentage, such percentage to be determined by multiplying, for taxa-
ble years beginning in nineteen hundred eighty-eight, ten percent, and
for taxable years beginning after nineteen hundred eighty-eight, twen-
ty-five percent, by a fraction, the numerator of which is the lesser of
fifty thousand dollars or the excess of such individual's city adjusted
gross income over four hundred seventy-five thousand dollars and the
denominator of which is fifty thousand dollars.
(3) WITH RESPECT TO AN INDIVIDUAL WHOSE CITY ADJUSTED GROSS INCOME IS
OVER ONE MILLION DOLLARS, AN AMOUNT EQUAL TO THE CITY ITEMIZED DEDUCTION
OF AN INDIVIDUAL OTHERWISE ALLOWABLE UNDER SUBDIVISION (A) OF THIS
SECTION, EXCEPT THE PORTION OF THE DEDUCTION ATTRIBUTABLE TO ANY CHARI-
TABLE CONTRIBUTION ALLOWED UNDER SECTION ONE HUNDRED SEVENTY OF THE
INTERNAL REVENUE CODE, MULTIPLIED BY FIFTY PERCENT, FOR TAXABLE YEARS
BEGINNING AFTER TWO THOUSAND EIGHT.
S 4. Clause (ii) of subparagraph (B) of paragraph 3 of subdivision (c)
of section 11-1785 of the administrative code of the city of New York,
as amended by chapter 55 of the laws of 1992, is amended to read as
follows:
(ii) one hundred percent of the tax shown on the return of the indi-
vidual for the preceding taxable year. PROVIDED, HOWEVER, THAT THE TAX
SHOWN ON SUCH RETURN FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND EIGHT
SHALL BE CALCULATED AS IF PARAGRAPH THREE OF SUBDIVISION (F) OF SECTION
11-1715 OF THIS CHAPTER WAS IN EFFECT FOR TAXABLE YEARS BEGINNING IN TWO
THOUSAND EIGHT.
S 5. Notwithstanding the provisions of subsection (c) of section 685
of the tax law or subdivision (c) of section 11-1785 of the administra-
tive code of the city of New York, no addition to tax as a result of an
underpayment of estimated tax that is attributable to the amendments
made by sections one, two and three of this act shall be imposed with
respect to any installment the due date for the payment of which is
prior to 45 days after the date this act shall have become a law.
S 6. Notwithstanding any provision of law to the contrary, the commis-
sioner of taxation and finance is authorized to prescribe by regulations
the method of determining the amount to be deducted and withheld from
wages on account of taxes imposed by or pursuant to the authority of
article 22 of the tax law in taxable years beginning in 2009 in
connection with the implementation of section one of this act. The
commissioner of taxation and finance may adjust the withholding tables
in regard to taxable years beginning in 2009 to account for the
provisions of this act. In prescribing any such regulations, the commis-
sioner of taxation and finance may adopt rules on an emergency basis
notwithstanding anything to the contrary in section 202 of the state
administrative procedure act. In carrying out his duties and responsi-
bilities under this section, the commissioner of taxation and finance
may accompany any such rule making procedure with a similar procedure
with respect to the taxes required to be deducted and withheld by local
laws imposing taxes pursuant to the authority of articles 30, 30-A and
30-B of the tax law that take effect and become applicable in taxable
S. 57--B 196 A. 157--B
years beginning in 2009, the provisions of any other law in relation to
such a procedure to the contrary notwithstanding.
S 7. This act shall take effect immediately.
PART X-1
Section 1. Paragraphs (a), (b), (c) and (d) of subdivision 1 of
section 424 of the tax law, paragraph (a) as amended by section 1 of
part V of chapter 63 of the laws of 2000, paragraph (b) as amended by
chapter 490 of the laws of 1993 and paragraphs (c) and (d) as amended by
chapter 170 of the laws of 1994, are amended to read as follows:
(a) [Eleven] FOURTEEN cents per gallon upon beers;
(b) [Eighteen and ninety-three hundredths] THIRTY cents per gallon
upon still wines, except cider containing more than three and two-tenths
per centum of alcohol by volume, upon which the tax shall be three and
seventy-nine hundredths cents per gallon;
(c) [Eighteen and ninety-three hundredths] THIRTY cents per gallon
upon artificially carbonated sparkling wines, except artificially carbo-
nated sparkling cider containing more than three and two-tenths per
centum of alcohol by volume, upon which the tax shall be three and
seventy-nine hundredths cents per gallon;
(d) [Eighteen and ninety-three hundredths] THIRTY cents per gallon
upon natural sparkling wines, except natural sparkling cider containing
more than three and two-tenths per centum of alcohol by volume, upon
which the tax shall be three and seventy-nine hundredths cents per
gallon;
S 2. (a) If a contract for the sale of beer and wines was entered into
prior to May 1, 2009 and delivery under that contract is made within the
state on or after May 1, 2009, the beer and wines sold under that
contract will be subject to tax under article 18 of the tax law, as
amended by this act, at the time of delivery.
(b) In order to subject beer and wines in this state on May 1, 2009 to
the increased taxes imposed by section one of this act, a special floor
tax is imposed on each wholesaler or retailer (as defined in the alco-
holic beverage control law) or other sellers of beer and wine, other
than those registered as distributors under article 18 of the tax law,
at the rates shown below with respect to all beer and wines in the
possession or under the control on May 1, 2009 of those wholesalers,
retailers and other sellers of beer and wines for purposes of sale in
the state. Additionally, any person who is a distributor or manufacturer
under article 18 of the tax law is subject to this special floor tax on
any beer and wines in his or her possession or under his or her control
on which the tax under article 18 of the tax law was already imposed.
The rate of the floor tax will be:
(1) On beer, thirteen cents per gallon; and
(2) On wines, thirty-two and seven hundredths cents per gallon.
This floor tax will be due and payable to the commissioner of taxation
and finance on or before July 20, 2009.
(c) Except as provided in this section, all the provisions of articles
18 and 37 of the tax law will apply to floor taxes imposed by this
section.
(d) The commissioner of taxation and finance is authorized to
prescribe any terms and conditions the commissioner deems advisable and
require any reports the commissioner deems necessary to effectuate the
provisions of this section.
S. 57--B 197 A. 157--B
(e) The commissioner of taxation and finance may request from the
state liquor authority, and the state liquor authority is authorized and
directed to provide, any cooperation and assistance, including data,
that will enable the commissioner to carry out the imposition and imple-
mentation of the floor tax.
S 3. This act shall take effect May 1, 2009.
PART Y-1
Section 1. Paragraph 2 of subdivision (a) of section 24 of the tax
law, as amended by section 1 of part WW-1 of chapter 57 of the laws of
2008, is amended to read as follows:
(2) The amount of the credit shall be the product (or pro rata share
of the product, in the case of a member of a partnership) of thirty
percent and the qualified production costs paid or incurred in the
production of a qualified film, provided that the qualified production
costs (excluding post production costs) paid or incurred which are
attributable to the use of tangible property or the performance of
services at a qualified film production facility in the production of
such qualified film equal or exceed seventy-five percent of the
production costs (excluding post production costs) paid or incurred
which are attributable to the use of tangible property or the perform-
ance of services at any film production facility within and without the
state in the production of such qualified film. However, if the quali-
fied production costs (excluding post production costs) which are
attributable to the use of tangible property or the performance of
services at a qualified film production facility in the production of
such qualified film is less than three million dollars, then the portion
of the qualified production costs attributable to the use of tangible
property or the performance of services in the production of such quali-
fied film outside of a qualified film production facility shall be
allowed only if the shooting days spent in New York outside of a film
production facility in the production of such qualified film equal or
exceed seventy-five percent of the total shooting days spent within and
without New York outside of a film production facility in the production
of such qualified film. The credit shall be allowed for the taxable year
in which the production of such qualified film is completed. IF THE
AMOUNT OF THE CREDIT IS AT LEAST ONE MILLION DOLLARS BUT LESS THAN FIVE
MILLION DOLLARS, THE CREDIT SHALL BE CLAIMED OVER A TWO YEAR PERIOD
BEGINNING IN THE TAXABLE YEAR IN WHICH THE PRODUCTION OF THE QUALIFIED
FILM IS COMPLETED AND IN THE NEXT SUCCEEDING TAXABLE YEAR, WITH ONE-HALF
OF THE AMOUNT OF CREDIT ALLOWED BEING CLAIMED IN EACH YEAR. IF THE
AMOUNT OF THE CREDIT IS AT LEAST FIVE MILLION DOLLARS, THE CREDIT SHALL
BE CLAIMED OVER A THREE YEAR PERIOD BEGINNING IN THE TAXABLE YEAR IN
WHICH THE PRODUCTION OF THE QUALIFIED FILM IS COMPLETED AND IN THE NEXT
TWO SUCCEEDING TAXABLE YEARS, WITH ONE-THIRD OF THE AMOUNT OF THE CREDIT
ALLOWED BEING CLAIMED IN EACH YEAR.
S 2. Section 7 of part P of chapter 60 of the laws of 2004, amending
the tax law relating to the empire state film production credit, is
amended by adding a new subdivision (d) to read as follows:
(D) THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED IN SUBDIVISION (A) OF
THIS SECTION SHALL BE INCREASED BY AN ADDITIONAL $350 MILLION IN 2009.
THIS ADDITIONAL AMOUNT SHALL BE ALLOCATED BY THE GOVERNOR'S OFFICE FOR
MOTION PICTURE AND TELEVISION DEVELOPMENT AMONG TAXPAYERS IN ACCORDANCE
WITH SUBDIVISION (A) OF THIS SECTION.
S. 57--B 198 A. 157--B
S 3. The governor's office of motion picture and television develop-
ment shall file a report on a quarterly basis with the director of the
division of the budget and the chairmen of the assembly ways and means
committee and senate finance committee. The report shall be filed within
fifteen days after the close of the calendar quarter. The first report
shall cover the calendar quarter that begins April 1, 2009. The report
must contain the following information for the calendar quarter:
(1) the total dollar amount of credits allocated during each month of
the calendar quarter, broken down by month;
(2) the number of film projects which have been allocated tax credits
of less than $1 million per project and the total dollar amount of cred-
its allocated to those projects;
(3) the number of film projects which have been allocated tax credits
of $1 million or more but less than $5 million per project and the total
dollar amount of credits allocated to those projects;
(4) the number of film projects which have been allocated tax credits
of $5 million or more per project and the total dollar amount of credits
allocated to those projects; and
(5) a list of each film project which has been allocated a tax credit
and for each of those projects (a) the estimated number of employees
associated with the project, (b) the estimated qualified costs for the
project, and (c) the estimated total costs of the project.
S 4. This act shall take effect immediately; provided however, that:
(a) sections one and two of this act shall apply to taxable years
beginning on or after January 1, 2009;
(b) any film that started production prior to such effective date but
had not received an allocation of tax credit from the governor's office
of motion picture and television development prior to that date shall be
ineligible for the empire state film production credit;
(c) the amendments to section 24 of the tax law made by section one of
this act shall not affect the repeal of such section and shall be deemed
to be repealed therewith; and
(d) the amendments to section 7 of part P of chapter 60 of the laws of
2004 made by section two of this act shall not affect the repeal of such
part and shall be deemed repealed therewith.
PART Z-1
Section 1. Subsections (a), (b) and (c) of section 601 of the tax law,
as amended by section 1 of part Y3 of chapter 62 of the laws of 2003,
are amended to read as follows:
(a) Resident married individuals filing joint returns and resident
surviving spouses. There is hereby imposed for each taxable year on the
New York taxable income of every resident married individual who makes a
single return jointly with his spouse under subsection (b) of section
six hundred fifty-one and on the New York taxable income of every resi-
dent surviving spouse a tax determined in accordance with the following
tables:
(1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND EIGHT AND BEFORE
TWO THOUSAND TWELVE:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $16,000 4% OF THE NEW YORK TAXABLE
INCOME
OVER $16,000 BUT NOT OVER $22,000 $640 PLUS 4.5% OF EXCESS OVER
S. 57--B 199 A. 157--B
$16,000
OVER $22,000 BUT NOT OVER $26,000 $910 PLUS 5.25% OF EXCESS OVER
$22,000
OVER $26,000 BUT NOT OVER $40,000 $1,120 PLUS 5.9% OF EXCESS OVER
$26,000
OVER $40,000 BUT NOT OVER $300,000 $1,946 PLUS 6.85% OF EXCESS OVER
$40,000
OVER $300,000 BUT NOT OVER $500,000 $19,756 PLUS 7.85% OF EXCESS OVER
$300,000
OVER $500,000 $35,456 PLUS 8.97% OF EXCESS OVER
$500,000
[(1)] (2) For taxable years beginning after two thousand five AND
BEFORE TWO THOUSAND NINE AND AFTER TWO THOUSAND ELEVEN:
If the New York taxable income is: The tax is:
Not over $16,000 4% of the New York taxable
income
Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
$16,000
Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
$22,000
Over $26,000 but not over $40,000 $1,120 plus 5.9% of excess over
$26,000
Over $40,000 $1,946 plus 6.85% of excess over
$40,000
[(2)] (3) For taxable years beginning in two thousand five:
If the New York taxable income is: The tax is:
Not over $16,000 4% of the New York taxable
income
Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
$16,000
Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
$22,000
Over $26,000 but not over $40,000 $1,120 plus 5.9% of excess over
$26,000
Over $40,000 but not over $150,000 $1,946 plus 6.85% of excess over
$40,000
Over $150,000 but not over $500,000 $9,481 plus 7.25% of excess over
$150,000
Over $500,000 $34,856 plus 7.7% of excess over
$500,000
[(3)] (4) For taxable years beginning in two thousand four:
If the New York taxable income is: The tax is:
Not over $16,000 4% of the New York taxable
income
Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
$16,000
Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
$22,000
Over $26,000 but not over $40,000 $1,120 plus 5.9% of excess over
S. 57--B 200 A. 157--B
$26,000
Over $40,000 but not over $150,000 $1,946 plus 6.85% of excess over
$40,000
Over $150,000 but not over $500,000 $9,481 plus 7.375% of excess over
$150,000
Over $500,000 $35,294 plus 7.7% of excess over
$500,000
[(4)] (5) For taxable years beginning in two thousand three:
If the New York taxable income is: The tax is:
Not over $16,000 4% of the New York taxable
income
Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
$16,000
Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
$22,000
Over $26,000 but not over $40,000 $1,120 plus 5.9% of excess over
$26,000
Over $40,000 but not over $150,000 $1,946 plus 6.85% of excess over
$40,000
Over $150,000 but not over $500,000 $9,481 plus 7.5% of excess over
$150,000
Over $500,000 $35,731 plus 7.7% of excess over
$500,000
[(5)] (6) For taxable years beginning after nineteen hundred ninety-
six and before two thousand three:
If the New York taxable income is: The tax is:
Not over $16,000 4% of the New York taxable
income
Over $16,000 but not over $22,000 $640 plus 4.5% of excess over
$16,000
Over $22,000 but not over $26,000 $910 plus 5.25% of excess over
$22,000
Over $26,000 but not over $40,000 $1,120 plus 5.9% of excess over
$26,000
Over $40,000 $1,946 plus 6.85% of excess over
$40,000
[(6)] (7) For taxable years beginning in nineteen hundred ninety-six:
If the New York taxable income is: The tax is:
Not over $11,000 4% of the New York taxable
income
Over $11,000 but not over $16,000 $440 plus 5% of excess over
$11,000
Over $16,000 but not over $22,000 $690 plus 6% of excess over
$16,000
Over $22,000 $1,050 plus 7% of excess over
$22,000
[(7)] (8) For taxable years beginning in nineteen hundred ninety-five:
If the New York taxable income is: The tax is:
Not over $13,000 4.55% of the New York taxable
S. 57--B 201 A. 157--B
income
Over $13,000 but not over $19,000 $592 plus 5.55% of excess over
$13,000
Over $19,000 but not over $25,000 $925 plus 6.55% of excess over
$19,000
Over $25,000 $1,318 plus 7.5% of excess over
$25,000
[(8)] (9) For taxable years beginning after nineteen hundred eighty-
nine and before nineteen hundred ninety-five:
If the New York taxable income is: The tax is:
Not over $11,000 4% of the New York taxable
income
Over $11,000 but not over $16,000 $440 plus 5% of excess over
$11,000
Over $16,000 but not over $22,000 $690 plus 6% of excess over
$16,000
Over $22,000 but not over $26,000 $1,050 plus 7% of excess over
$22,000
Over $26,000 $1,330 plus 7.875% of excess over
$26,000
(b) Resident heads of households. There is hereby imposed for each
taxable year on the New York taxable income of every resident head of a
household a tax determined in accordance with the following tables:
(1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND EIGHT AND BEFORE
TWO THOUSAND TWELVE:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $11,000 4% OF THE NEW YORK TAXABLE
INCOME
OVER $11,000 BUT NOT OVER $15,000 $440 PLUS 4.5% OF EXCESS OVER
$11,000
OVER $15,000 BUT NOT OVER $17,000 $620 PLUS 5.25% OF EXCESS OVER
$15,000
OVER $17,000 BUT NOT OVER $30,000 $725 PLUS 5.9% OF EXCESS OVER
$17,000
OVER $30,000 BUT NOT OVER $250,000 $1,492 PLUS 6.85% OF EXCESS OVER
$30,000
OVER $250,000 BUT NOT OVER $500,000 $16,562 PLUS 7.85% OF EXCESS OVER
$250,000
OVER $500,000 $36,187 PLUS 8.97% OF EXCESS OVER
$500,000
[(1)] (2) For taxable years beginning after two thousand five AND
BEFORE TWO THOUSAND NINE AND AFTER TWO THOUSAND ELEVEN:
If the New York taxable income is: The tax is:
Not over $11,000 4% of the New York taxable
income
Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
$11,000
Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
$15,000
Over $17,000 but not over $30,000 $725 plus 5.9% of excess over
S. 57--B 202 A. 157--B
$17,000
Over $30,000 $1,492 plus 6.85% of excess over
$30,000
[(2)] (3) For taxable years beginning in two thousand five:
If the New York taxable income is: The tax is:
Not over $11,000 4% of the New York taxable
income
Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
$11,000
Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
$15,000
Over $17,000 but not over $30,000 $725 plus 5.9% of excess over
$17,000
Over $30,000 but not over $125,000 $1,492 plus 6.85% of excess over
$30,000
Over $125,000 but not over $500,000 $8,000 plus 7.25% of excess over
$125,000
Over $500,000 $35,187 plus 7.7% of excess over
$500,000
[(3)] (4) For taxable years beginning in two thousand four:
If the New York taxable income is: The tax is:
Not over $11,000 4% of the New York taxable
income
Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
$11,000
Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
$15,000
Over $17,000 but not over $30,000 $725 plus 5.9% of excess over
$17,000
Over $30,000 but not over $125,000 $1,492 plus 6.85% of excess over
$30,000
Over $125,000 but not over $500,000 $8,000 plus 7.375% of excess over
$125,000
Over $500,000 $35,656 plus 7.7% of excess over
$500,000
[(4)] (5) For taxable years beginning in two thousand three:
If the New York taxable income is: The tax is:
Not over $11,000 4% of the New York taxable
income
Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
$11,000
Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
$15,000
Over $17,000 but not over $30,000 $725 plus 5.9% of excess over
$17,000
Over $30,000 but not over $125,000 $1,492 plus 6.85% of excess over
$30,000
Over $125,000 but not over $500,000 $8,000 plus 7.5% of excess over
$125,000
Over $500,000 $36,125 plus 7.7% of excess over
S. 57--B 203 A. 157--B
$500,000
[(5)] (6) For taxable years beginning after nineteen hundred ninety-
six and before two thousand three:
If the New York taxable income is: The tax is:
Not over $11,000 4% of the New York taxable
income
Over $11,000 but not over $15,000 $440 plus 4.5% of excess over
$11,000
Over $15,000 but not over $17,000 $620 plus 5.25% of excess over
$15,000
Over $17,000 but not over $30,000 $725 plus 5.9% of excess over
$17,000
Over $30,000 $1,492 plus 6.85% of excess over
$30,000
[(6)] (7) For taxable years beginning in nineteen hundred ninety-six:
If the New York taxable income is: The tax is:
Not over $7,500 4% of the New York taxable
income
Over $7,500 but not over $11,000 $300 plus 5% of excess over
$7,500
Over $11,000 but not over $15,000 $475 plus 6% of excess over
$11,000
Over $15,000 $ 715 plus 7% of excess over
$15,000
[(7)] (8) For taxable years beginning in nineteen hundred ninety-five:
If the New York taxable income is: The tax is:
Not over $9,000 4.55% of the New York taxable
income
Over $9,000 but not over $14,000 $410 plus 5.55% of excess over
$9,000
Over $14,000 but not over $19,000 $687 plus 6.55% of excess over
$14,000
Over $19,000 $1,015 plus 7.5% of excess over
$19,000
[(8)] (9) For taxable years beginning after nineteen hundred eighty-
nine and before nineteen hundred ninety-five:
If the New York taxable income is: The tax is:
Not over $7,500 4% of the New York taxable
income
Over $7,500 but not over $11,000 $300 plus 5% of excess over
$7,500
Over $11,000 but not over $15,000 $475 plus 6% of excess over
$11,000
Over $15,000 but not over $17,000 $715 plus 7% of excess over
$15,000
Over $17,000 $855 plus 7.875% of excess over
$17,000
S. 57--B 204 A. 157--B
(c) Resident unmarried individuals, resident married individuals
filing separate returns and resident estates and trusts. There is hereby
imposed for each taxable year on the New York taxable income of every
resident individual who is not a married individual who makes a single
return jointly with his spouse under subsection (b) of section six
hundred fifty-one or a resident head of a household or a resident
surviving spouse, and on the New York taxable income of every resident
estate and trust a tax determined in accordance with the following
tables:
(1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND EIGHT AND BEFORE
TWO THOUSAND TWELVE:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $8,000 4% OF THE NEW YORK TAXABLE
INCOME
OVER $8,000 BUT NOT OVER $11,000 $320 PLUS 4.5% OF EXCESS OVER
$8,000
OVER $11,000 BUT NOT OVER $13,000 $455 PLUS 5.25% OF EXCESS OVER
$11,000
OVER $13,000 BUT NOT OVER $20,000 $560 PLUS 5.9% OF EXCESS OVER
$13,000
OVER $20,000 BUT NOT OVER $200,000 $973 PLUS 6.85% OF EXCESS OVER
$20,000
OVER $200,000 BUT NOT OVER $500,000 $13,303 PLUS 7.85% OF EXCESS OVER
$200,000
OVER $500,000 $36,853 PLUS 8.97% OF EXCESS OVER
$500,000
[(1)] (2) For taxable years beginning after two thousand five AND
BEFORE TWO THOUSAND NINE AND AFTER TWO THOUSAND ELEVEN:
If the New York taxable income is: The tax is:
Not over $8,000 4% of the New York taxable
income
Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
$8,000
Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
$11,000
Over $13,000 but not over $20,000 $560 plus 5.9% of excess over
$13,000
Over $20,000 $973 plus 6.85% of excess over
$20,000
[(2)] (3) For taxable years beginning in two thousand five:
If the New York taxable income is: The tax is:
Not over $8,000 4% of the New York taxable
income
Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
$8,000
Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
$11,000
Over $13,000 but not over $20,000 $560 plus 5.9% of excess over
$13,000
Over $20,000 but not over $100,000 $973 plus 6.85% of excess over
S. 57--B 205 A. 157--B
$20,000
Over $100,000 but not over $500,000 $6,453 plus 7.25% of excess over
$100,000
Over $500,000 $35,453 plus 7.7% of excess over
$500,000
[(3)] (4) For taxable years beginning in two thousand four:
If the New York taxable income is: The tax is:
Not over $8,000 4% of the New York taxable
income
Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
$8,000
Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
$11,000
Over $13,000 but not over $20,000 $560 plus 5.9% of excess over
$13,000
Over $20,000 but not over $100,000 $973 plus 6.85% of excess over
$20,000
Over $100,000 but not over $500,000 $6,453 plus 7.375% of excess over
$100,000
Over $500,000 $35,953 plus 7.7% of excess over
$500,000
[(4)] (5) For taxable years beginning in two thousand three:
If the New York taxable income is: The tax is:
Not over $8,000 4% of the New York taxable
income
Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
$8,000
Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
$11,000
Over $13,000 but not over $20,000 $560 plus 5.9% of excess over
$13,000
Over $20,000 but not over $100,000 $973 plus 6.85% of excess over
$20,000
Over $100,000 but not over $500,000 $6,453 plus 7.5% of excess over
$100,000
Over $500,000 $36,453 plus 7.7% of excess over
$500,000
[(5)] (6) For taxable years beginning after nineteen hundred ninety-
six and before two thousand three:
If the New York taxable income is: The tax is:
Not over $8,000 4% of the New York taxable
income
Over $8,000 but not over $11,000 $320 plus 4.5% of excess over
$8,000
Over $11,000 but not over $13,000 $455 plus 5.25% of excess over
$11,000
Over $13,000 but not over $20,000 $560 plus 5.9% of excess over
$13,000
Over $20,000 $973 plus 6.85% of excess over
S. 57--B 206 A. 157--B
$20,000
[(6)] (7) For taxable years beginning in nineteen hundred ninety-six:
If the New York taxable income is: The tax is:
Not over $5,500 4% of the New York taxable
income
Over $5,500 but not over $8,000 $220 plus 5% of excess over
$5,500
Over $8,000 but not over $11,000 $345 plus 6% of excess over
$8,000
Over $11,000 $525 plus 7% of excess over
$11,000
[(7)] (8) For taxable years beginning in nineteen hundred ninety-five:
If the New York taxable income is: The tax is:
Not over $6,500 4.55% of the New York taxable
income
Over $6,500 but not over $9,500 $296 plus 5.55% of excess over
$6,500
Over $9,500 but not over $12,500 $462 plus 6.55% of excess over
$9,500
Over $12,500 $659 plus 7.5% of excess over
$12,500
[(8)] (9) For taxable years beginning after nineteen hundred eighty-
nine and before nineteen hundred ninety-five:
If the New York taxable
income is: The tax is:
Not over $5,500 4% of the New York taxable
income
Over $5,500 but not over $8,000 $220 plus 5% of excess over
$5,500
Over $8,000 but not over $11,000 $345 plus 6% of excess over
$8,000
Over $11,000 but not over $13,000 $525 plus 7% of excess over
$11,000
Over $13,000 $665 plus 7.875% of excess over
$13,000
S 2. Subparagraphs (B) and (C) of paragraph 2 of subsection (d) of
section 601 of the tax law, as amended by section 1 of part R of chapter
63 of the laws of 2003, are amended to read as follows:
(B) [The] FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWO AND
BEFORE TWO THOUSAND SIX, THE fraction is computed as follows: the numer-
ator is the lesser of fifty thousand dollars or the excess of New York
adjusted gross income for the taxable year over one hundred fifty thou-
sand dollars and the denominator is fifty thousand dollars. FOR TAXABLE
YEARS BEGINNING AFTER TWO THOUSAND EIGHT AND BEFORE TWO THOUSAND TWELVE,
THE FRACTION IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF
FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME
FOR THE TAXABLE YEAR OVER THREE HUNDRED THOUSAND DOLLARS AND THE DENOMI-
NATOR IS FIFTY THOUSAND DOLLARS.
S. 57--B 207 A. 157--B
(C) This paragraph shall only apply to taxable years beginning after
two thousand two and before two thousand six AND AFTER TWO THOUSAND
EIGHT AND BEFORE TWO THOUSAND TWELVE.
S 3. Subparagraphs (B) and (C) of paragraph 3 of subsection (d) of
section 601 of the tax law, as amended by section 1 of part R of chapter
63 of the laws of 2003, subparagraph (B) as separately amended by
section 2 of part R of chapter 63 of the laws of 2003, are amended to
read as follows:
(B) For such taxpayers with adjusted gross income over five hundred
thousand dollars, FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND EIGHT
AND BEFORE TWO THOUSAND TWELVE, the fraction is [one] COMPUTED AS
FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE
EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER FIVE
HUNDRED THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.
Provided, however, that the total tax prior to the application of any
tax credits shall not exceed the highest rate of tax set forth in the
tax table in subsection (a) of this section multiplied by the taxpayer's
taxable income.
(C) This paragraph shall only apply to taxable years beginning after
two thousand two and before two thousand six AND AFTER TWO THOUSAND
EIGHT AND BEFORE TWO THOUSAND TWELVE.
S 4. Clause (ii) of subparagraph (B) of paragraph 3 of subsection (c)
of section 685 of the tax law, as amended by section 2 of part Y3 of
chapter 62 of the laws of 2003, is amended to read as follows:
(ii) one hundred percent of the tax shown on the return of the indi-
vidual for the preceding taxable year. Provided, however, the tax shown
on such return for taxable years beginning in two thousand two shall be
the tax calculated as if such years began in two thousand three.
FURTHER PROVIDED THAT THE TAX SHOWN ON SUCH RETURN FOR TAXABLE YEARS
BEGINNING IN TWO THOUSAND EIGHT SHALL BE THE TAX CALCULATED AS IF SUCH
YEARS BEGAN IN TWO THOUSAND NINE.
S 5. Notwithstanding any provision of law to the contrary, the method
of determining the amount to be deducted and withheld from wages on
account of taxes imposed by or pursuant to the authority of article 22
of the tax law in connection with the implementation of the provisions
of this act shall be prescribed by regulations of the commissioner of
taxation and finance with due consideration to the effect such withhold-
ing tables and methods would have on the receipt and amount of revenue.
The commissioner of taxation and finance shall adjust such withholding
tables and methods in regard to taxable years beginning in 2009 and
after in such manner as to result, so far as practicable, in withholding
from an employee's wages an amount substantially equivalent to the tax
reasonably estimated to be due for such taxable years as a result of the
provisions of this act. Provided, however, for tax year 2009 the with-
holding tables shall reflect as accurately as practicable the full
amount of tax year 2009 liability so that such amount is withheld by
December 31, 2009. Any such regulations to implement a change in with-
holding tables and methods for tax year 2009 shall be adopted and effec-
tive as soon as practicable and the commissioner of taxation and finance
may adopt such regulations on an emergency basis notwithstanding
anything to the contrary in section 202 of the state administrative
procedure act. In carrying out his or her duties and responsibilities
under this section, the commissioner of taxation and finance may accom-
pany such a rule making procedure with a similar procedure with respect
to the taxes required to be deducted and withheld by local laws imposing
taxes pursuant to the authority of articles 30, 30-A and 30-B of the tax
S. 57--B 208 A. 157--B
law, the provisions of any other law in relation to such a procedure to
the contrary notwithstanding.
S 6. 1. Notwithstanding any provision of law to the contrary, no addi-
tion to tax required shall be imposed for failure to pay the estimated
tax in subsection (c) of section 685 of the tax law with respect to any
underpayment of a required installment due prior to, or within thirty
days of, the effective date of this act to the extent that such under-
payment was created or increased by the amendments made by this act
provided, however, that the taxpayer remits the amount of the underpay-
ment with his or her next quarterly estimated tax payment.
2. The commissioner of taxation and finance shall take steps to publi-
cize the necessary adjustments to estimated tax and, to the extent
reasonably possible, to inform the taxpayer of the tax liability changes
made by this act.
S 7. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2009.
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 date of Parts A through Z-1 of this act shall
be as specifically set forth in the last section of such Parts.