Assembly Bill A9710D

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

    S. 6610                                                  A. 9710

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

                            January 19, 2010
                               ___________

IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
  cle seven of the Constitution -- read twice and ordered  printed,  and
  when printed to be committed to the Committee on Finance

IN  ASSEMBLY  --  A  BUDGET  BILL, submitted by the Governor pursuant to
  article seven of the Constitution -- read once  and  referred  to  the
  Committee on Ways and Means

AN ACT to amend the tax law, in relation to imposing a tax on the sever-
  ing  of  natural  gas  (Part  A); to amend the tax law, in relation to
  increasing the rate of the cigarette tax under article 20 of  the  tax
  law  (Part  B);  to  amend the tax law, in relation to imposing tax on
  beverage syrups and soft drinks (Part C); to amend  the  tax  law,  in
  relation  to the statutory limitation on the biofuel production credit
  and the qualified emerging technology company  facilities,  operations
  and  training  credits  (Part D); to amend the tax law, in relation to
  the inclusion of certain past employment related income in the  calcu-
  lation  of  the  New  York  source income of nonresidents (Part E); to
  amend the tax law, in  relation  to  clarifying  that  certain  income
  constitutes New York source income of nonresident shareholders of an S
  corporation (Part F); to amend the tax law, in relation to taxation of
  certain resident trusts; and to repeal subparagraph (D) of paragraph 3
  of  subdivision  (b) of section 605 of such law relating thereto (Part
  G); to amend the tax law, in  relation  to  information  reporting  of
  payments  made  in  settlement of payment card and third party network
  transactions (Part H); to amend the tax law, in relation to  authoriz-
  ing  the  use  of generally accepted statistical sampling to determine
  the amount of sales and compensating use tax due under articles 28 and
  29 of such law (Part I); to amend the tax law and  the  administrative
  code  of  the  city  of New York, in relation to the penalties imposed
  upon tax return preparers failing to electronically file  returns  and
  other  tax  documents  when  required  by  law  to do so, to authorize
  reasonable correction periods for electronic tax filings and payments,
  and to prohibit tax  return  preparers  and  software  companies  from
  charging  separately  for  electronic filing of New York tax documents
  (Part J); to amend the tax law, in relation to providing  the  depart-
  ment of taxation and finance with greater flexibility, and the ability
  to realize cost savings, by allowing the department to use alternative

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD12674-01-0

S. 6610                             2                            A. 9710

  means by which tax notices and other tax documents are communicated to
  addressees  (Part  K);  to amend the tax law, in relation to reforming
  the offer-in-compromise program (Part L); to direct the department  of
  taxation  and  finance to complete a report that makes recommendations
  about reforming and modernizing state and local taxes on communication
  services (Part M); to amend chapter 405 of the laws of 1999,  amending
  the  real property tax law relating to improving the administration of
  the school tax relief (STAR) program, in relation to  eliminating  the
  expiration and repeal of the Quick Draw lottery game; and to amend the
  tax  law,  in  relation  to  the game of Quick Draw (Part N); to amend
  chapter 383 of the laws of 2001 amending the tax law  and  other  laws
  relating to authorizing the division of the lottery to conduct a pilot
  program  involving the operation of video lottery terminals at certain
  racetracks, in relation to the effectiveness thereof; to amend the tax
  law, in relation to the hours of operation of video lottery gaming and
  the recapture of the vendor fee at a  certain  track;  and  to  repeal
  section  13  of  chapter  140 of the laws of 2008 amending the racing,
  pari-mutuel wagering and breeding   law and  other  laws  relating  to
  thoroughbred racing and to repeal section 5 of chapter 286 of the laws
  of  2008  amending  the tax law relating to annual capital improvement
  credits for video lottery gaming operators, relating thereto (Part O);
  to amend the tax law and the uniform commercial code, in  relation  to
  imposing  a  recording  tax  on  the  filing  of  financing statements
  pertaining to cooperative interests in cooperative organizations (Part
  P); to amend the tax law, in relation to  establishing  a  school  tax
  circuit  breaker  tax  credit;  and to amend the state finance law, in
  relation to establishing a property tax circuit breaker  reserve  fund
  and  annual  spending growth cap, and increasing the rainy day reserve
  fund; and providing for the repeal of certain provisions upon  expira-
  tion  thereof  (Part  Q);  to amend the tax law and the administrative
  code of the city of New York, in relation to allowing  recognition  of
  marriages  performed outside New York state (Part R); to amend the tax
  law, in relation to narrowing the definition of vendor for purposes of
  the sales and compensating use taxes (Part S); to amend the  alcoholic
  beverage  control law and the state finance law, in relation to enact-
  ing the wine industry and liquor store revitalization act;  to  repeal
  certain  provisions  of  the  alcoholic  beverage control law relating
  thereto; and providing for the repeal of certain provisions upon expi-
  ration thereof (Part T); to amend the public housing law, in  relation
  to  providing  a  credit  against  income  tax for persons or entities
  investing in low-income housing (Part U); to amend chapter 60  of  the
  laws  of  2004, amending the tax law relating to the empire state film
  production credit, in relation to the  empire  state  film  production
  credit and in relation to the effectiveness of such provisions; and to
  amend  the  tax  law,  in relation to the empire state film production
  credit (Part V); to amend the economic development  law  and  the  tax
  law,  in relation to creating the excelsior jobs program act (Part W);
  to amend the general municipal law, in relation to the decertification
  of business entities located in empire zones; to amend the tax law, in
  relation to a refund or credit provided to certain zone businesses and
  to a report on empire zone businesses produced by  the  department  of
  taxation  and  finance,  and  to amend chapter 57 of the laws of 2009,
  amending the general municipal law and the tax law relating to  enact-
  ing reforms to the empire zones program, in relation to the effective-
  ness  thereof  (Part  X);  to  amend  chapter 298 of the laws of 1985,
  amending the tax law relating to the franchise tax on  banking  corpo-

S. 6610                             3                            A. 9710

  rations  imposed  by the tax law, authorized to be imposed by any city
  having a population of one million or more by chapter 772 of the  laws
  of 1966 and imposed by the administrative code of the city of New York
  and  relating  to  other provisions of the tax law, chapter 883 of the
  laws of 1975 and the administrative code of the city of New York which
  relates to such franchise tax, to amend chapter 817  of  the  laws  of
  1987,  amending  the  tax  law and the environmental conservation law,
  constituting the business tax reform and rate reduction act  of  1987,
  and to amend chapter 525 of the laws of 1988, amending the tax law and
  the  administrative code of the city of New York relating to the impo-
  sition of taxes in the city of New York, in relation to the effective-
  ness of certain provisions of such chapters; and to extend the  Gramm-
  Leach-Bliley  transitional  provisions  under  the  franchise taxes on
  banking corporations under the tax law and the administrative code  of
  the  city  of  New York (Part Y); to amend the tax law, in relation to
  making technical corrections to certain tax enforcement and sales  tax
  avoidance  provisions;  and  to  amend  chapter 57 of the laws of 2009
  amending the criminal procedure law, the penal law, and  the  tax  law
  relating  to  creating  the offense of "tax fraud act", in relation to
  the effectiveness thereof (Subpart  A);  to  amend  the  tax  law,  in
  relation  to  defining  certain  terms  (Subpart  B); and to amend the
  general municipal law and the public authorities law, in  relation  to
  statements  of industrial agencies and their agents and project opera-
  tors (Subpart C) (PART Z); 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  thorough-
  bred  races,  simulcasting of races run by out-of-state harness tracks
  and distributions of wagers; to amend chapter 281 of the laws of  1994
  amending  the  racing, pari-mutuel wagering and breeding law and other
  laws relating to simulcasting and to amend chapter 346 of the laws  of
  1990  amending  the  racing, pari-mutuel wagering and breeding law and
  other laws relating to simulcasting  and  the  imposition  of  certain
  taxes,  in  relation  to  extending certain provisions thereof; and to
  amend the racing, pari-mutuel wagering and breeding law,  in  relation
  to  extending  certain  provisions thereof (Part AA); to amend the tax
  law, in relation to the amount  of  the  unified  credit  against  the
  estate  tax (Part BB); and to amend the tax law, the general municipal
  law, and the administrative code of the city of New York, in  relation
  to the taxicab ride tax imposed in the metropolitan commuter transpor-
  tation district by article 29-A of the tax law (Part CC)

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

  Section 1. This act enacts into law major  components  of  legislation
which are necessary to implement the state fiscal plan for the 2010-2011
state  fiscal  year.  Each  component  is wholly contained within a Part
identified as Parts A through CC. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes 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.

S. 6610                             4                            A. 9710

                                 PART A

  Section  1.  Paragraph a of subdivision twenty-sixth of section 171 of
the tax law, as amended by section 1 of subpart D of part V-1 of chapter
57 of the laws of 2009, is amended to read as follows:
  a. Set the overpayment and underpayment rates of interest for purposes
of articles twelve-A, SEVENTEEN, 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
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.  Subdivision  1  of  section 171-a of the tax law, as amended by
section 1 of part R of chapter 60 of the laws of  2004,  is  amended  to
read as follows:
  1.  All  taxes,  interest, penalties and fees collected or received by
the commissioner or the commissioner's duly authorized agent under arti-
cles nine (except section one hundred eighty-two-a thereof and except as
otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
twelve-A  (except  as  otherwise provided in section two hundred eighty-
four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
section  three  hundred  twelve thereof), SEVENTEEN (EXCEPT AS OTHERWISE
PROVIDED IN SECTION FOUR HUNDRED  EIGHT  THEREOF),  eighteen,  nineteen,
twenty  (except as otherwise provided in section four hundred eighty-two
thereof), twenty-one, twenty-two, twenty-six, twenty-six-B, twenty-eight
(except as otherwise provided in section eleven hundred  two  or  eleven
hundred  three thereof), twenty-eight-A, thirty-one (except as otherwise
provided in section fourteen hundred  twenty-one  thereof),  thirty-two,
thirty-three and thirty-three-A of this chapter shall be deposited daily
in  one  account  with  such  responsible banks, banking houses or trust
companies as may be designated by the comptroller, to the credit of  the
comptroller.  Such  an account may be established in one or more of such
depositories. Such deposits shall be kept separate and  apart  from  all
other  money in the possession of the comptroller. The comptroller shall
require adequate security from  all  such  depositories.  Of  the  total
revenue  collected  or received under such articles of this chapter, the
comptroller shall retain in the comptroller's hands such amount  as  the
commissioner may determine to be necessary for refunds or reimbursements
under  such  articles  of  this chapter [and article ten thereof] out of
which amount the comptroller shall pay any refunds or reimbursements  to
which  taxpayers shall be entitled under the provisions of such articles
of this chapter [and article ten  thereof].  The  commissioner  and  the
comptroller  shall  maintain  a system of accounts showing the amount of
revenue collected or received from each of the  taxes  imposed  by  such
articles.  The  comptroller,  after  reserving  the  amount  to pay such
refunds or reimbursements, shall, on or before the  tenth  day  of  each
month, pay into the state treasury to the credit of the general fund all

S. 6610                             5                            A. 9710

revenue deposited under this section during the preceding calendar month
and  remaining  to  the  comptroller's  credit  on  the last day of such
preceding month, (i) except that the comptroller shall pay to the  state
department of social services that amount of overpayments of tax imposed
by  article  twenty-two  of this chapter and the interest on such amount
which is certified to the comptroller by the commissioner as the  amount
to  be  credited against past-due support pursuant to subdivision six of
section one hundred seventy-one-c of this [chapter]  ARTICLE,  (ii)  and
except  that  the  comptroller  shall  pay  to the New York state higher
education services corporation and the state university of New  York  or
the city university of New York respectively that amount of overpayments
of tax imposed by article twenty-two of this chapter and the interest on
such amount which is certified to the comptroller by the commissioner as
the amount to be credited against the amount of defaults in repayment of
guaranteed  student  loans and state university loans or city university
loans pursuant to subdivision five of section one hundred  seventy-one-d
and  subdivision six of section one hundred seventy-one-e of this [chap-
ter] ARTICLE, (iii) and except further that,  notwithstanding  any  law,
the  comptroller shall credit to the revenue arrearage account, pursuant
to section ninety-one-a of the state finance law, that amount  of  over-
payment  of  tax  imposed  by  article nine, nine-A, twenty-two, thirty,
thirty-A, thirty-B, thirty-two or thirty-three of this chapter, and  any
interest  thereon,  which is certified to the comptroller by the commis-
sioner as the amount to be credited against a past-due legally enforcea-
ble debt owed to a state agency pursuant to paragraph (a) of subdivision
six of section one hundred  seventy-one-f  of  this  article,  provided,
however, he shall credit to the special offset fiduciary account, pursu-
ant  to  section  ninety-one-c of the state finance law, any such amount
creditable as a liability as set forth in paragraph (b)  of  subdivision
six  of  section  one  hundred  seventy-one-f  of this article, (iv) and
except further that the comptroller shall pay to the city  of  New  York
that amount of overpayment of tax imposed by article nine, nine-A, twen-
ty-two,  thirty, thirty-A, thirty-B, thirty-two, or thirty-three of this
chapter and any interest thereon that is certified to the comptroller by
the commissioner as the amount to be credited against city of  New  York
tax  warrant judgment debt pursuant to section one hundred seventy-one-l
of this article, (v) and except further that the comptroller  shall  pay
to  a  non-obligated spouse that amount of overpayment of tax imposed by
article twenty-two of this chapter and the interest on such amount which
has been credited pursuant to section  one  hundred  seventy-one-c,  one
hundred  seventy-one-d,  one hundred seventy-one-e, one hundred seventy-
one-f or one hundred seventy-one-l of this article and which  is  certi-
fied  to the comptroller by the commissioner as the amount due such non-
obligated spouse pursuant to paragraph six of subsection (b) of  section
six  hundred  fifty-one  of this chapter; and (vi) the comptroller shall
deduct a like amount which the comptroller shall pay into  the  treasury
to  the  credit of the general fund from amounts subsequently payable to
the [department of  social  services]  OFFICE  OF  CHILDREN  AND  FAMILY
SERVICES  AND  THE  OFFICE  OF  TEMPORARY AND DISABILITY ASSISTANCE, the
state university of New York, the city university of New  York,  or  the
higher  education services corporation, or the revenue arrearage account
or special offset fiduciary account pursuant to section ninety-one-a  or
ninety-one-c of the state finance law, as the case may be, whichever had
been  credited the amount originally withheld from such overpayment, and
(vii) with respect to amounts originally withheld from such  overpayment
pursuant  to  section one hundred seventy-one-l of this article and paid

S. 6610                             6                            A. 9710

to the city of New York, the comptroller shall  collect  a  like  amount
from the city of New York.
  S  3.  The  tax  law  is amended by adding a new article 17 to read as
follows:
                               ARTICLE 17
                       TAX ON SEVERING NATURAL GAS
SECTION 400. GENERAL DEFINITIONS.
        401. IMPOSITION OF TAX.
        402. REGISTRATION OF PRODUCERS.
        403. RECORDS TO BE KEPT BY PRODUCERS.
        404. PAYMENT OF TAX; RETURNS.
        405. DETERMINATION OF TAX.
        406. PENALTIES AND INTEREST.
        407. MAILING RULES; HOLIDAYS.
        408. DEPOSIT AND DISPOSITION OF REVENUE.
        409. REFUNDS.
        410. SECRECY.
        411. LIABILITY FOR OTHER TAXES NOT AFFECTED.
  S 400. GENERAL DEFINITIONS. AS USED IN THIS ARTICLE:
  1. "PERSON" INCLUDES AN  INDIVIDUAL,  PARTNERSHIP,  LIMITED  LIABILITY
COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY, CORPORATION, ESTATE,
RECEIVER,  TRUSTEE,  ASSIGNEE, REFEREE, AND ANY OTHER PERSON ACTING IN A
FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER APPOINTED BY  A  COURT  OR
OTHERWISE, AND ANY COMBINATION OF THE FOREGOING.
  2.  "PRODUCER" MEANS ANY PERSON WHO SEVERS NATURAL GAS FROM A GAS POOL
IN THE MARCELLUS OR UTICA SHALE FORMATION USING A HORIZONTAL WELL.
  3. "PURCHASER" MEANS ANY PERSON, CONSIGNOR, AGENT, OR OTHER DEALER, BY
WHATEVER NAME CALLED, WHO OR WHICH ACQUIRES  TITLE  OUTRIGHT  OR  CONDI-
TIONALLY TO ANY INTEREST IN SEVERED NATURAL GAS.
  4. "MARKET VALUE," WHEN USED IN REFERENCE TO THE RATE OF SEVERANCE TAX
ON  NATURAL GAS, MEANS THE PRODUCER'S ACTUAL CASH RECEIPTS FROM THE SALE
OF NATURAL GAS TO  THE  FIRST  PURCHASER.  IN  A  TRANSACTION  INVOLVING
RELATED  PARTIES (AS THAT TERM IS DESCRIBED IN SECTION 267(B) OR SECTION
707(B) OF THE INTERNAL REVENUE CODE), MARKET VALUE CANNOT BE  LESS  THAN
THE  FAIR  MARKET VALUE FOR NATURAL GAS OF SIMILAR GRADE AND QUALITY. IN
THE ABSENCE OF A SALE, MARKET VALUE IS THE FAIR MARKET VALUE FOR NATURAL
GAS OF SIMILAR GRADE AND QUALITY. "FAIR MARKET VALUE"  IS  THE  MIDPOINT
PRICE  OF  NATURAL  GAS  AT  THE  DOMINION, SOUTH POINT MARKET CENTER AS
PUBLISHED IN PLATTS GAS DAILY OR, IF THAT  PRICE  IS  UNATTAINABLE,  THE
FAIR MARKET PRICE OF NATURAL GAS AT A SIMILAR MARKET CENTER AS PUBLISHED
BY A SIMILAR INDUSTRY ORGANIZATION.
  5.  "SEVER",  "SEVERED",  OR  "SEVERING" MEANS, IN RELATION TO NATURAL
GAS, TAKING OR REMOVING FOR COMMERCIAL PURPOSES FROM THE SOIL  OR  WATER
BY  A  WELL  WHOSE  SURFACE  HOLE IS LOCATED WITHIN THIS STATE. HOWEVER,
"SEVER", "SEVERED", OR "SEVERING" DOES NOT  APPLY  TO  ANY  NATURAL  GAS
RETURNED  TO ANY FORMATION, IN RECYCLING, REPRESSURING, PRESSURE MAINTE-
NANCE OPERATION, OR OTHER OPERATION, FOR THE PRODUCTION OF  OIL  OR  ANY
OTHER LIQUID HYDROCARBON.
  6.  "COMPLETION" OR "COMPLETED" MEANS THE ACT OF MAKING A WELL CAPABLE
OF PRODUCING NATURAL GAS.
  7. "MCF" EQUALS ONE THOUSAND CUBIC FEET.
  S 401. IMPOSITION OF TAX. THERE IS HEREBY IMPOSED UPON EVERY PRODUCER,
FOR THE PRIVILEGE OF SEVERING NATURAL GAS FROM ANY OIL OR GAS WELL  FROM
A  GAS  POOL IN THE MARCELLUS OR THE UTICA SHALE FORMATION USING A HORI-
ZONTAL WELL, A TAX  OF THREE PERCENT OF THE MARKET VALUE OF THE  NATURAL
GAS.

S. 6610                             7                            A. 9710

  S 402. REGISTRATION OF PRODUCERS. 1. THE DEPARTMENT, UPON THE APPLICA-
TION  OF  A  PERSON, SHALL REGISTER THAT PERSON AS A PRODUCER UNDER THIS
ARTICLE IF THAT PERSON HAS OBTAINED ALL PERMITS REQUIRED BY THE  DEPART-
MENT  OF ENVIRONMENTAL CONSERVATION TO SEVER NATURAL GAS FROM A GAS POOL
IN  THE MARCELLUS OR UTICA SHALE FORMATION USING A HORIZONTAL WELL.  THE
APPLICATION SHALL BE IN A FORM AND CONTAIN SUCH DATA AS  THE  DEPARTMENT
PRESCRIBES. NO PRODUCER, UNLESS SO REGISTERED, MAY SEVER NATURAL GAS.
  2.    THE COMMISSIONER MAY REQUIRE A PRODUCER TO FILE WITH THE DEPART-
MENT A BOND ISSUED BY A SURETY COMPANY THAT IS APPROVED  BY  THE  SUPER-
INTENDENT  OF INSURANCE AS TO SOLVENCY AND RESPONSIBILITY AND AUTHORIZED
TO TRANSACT BUSINESS IN THIS STATE OR ANOTHER SECURITY ACCEPTABLE TO THE
COMMISSIONER, IN AN AMOUNT FIXED  BY  THE  COMMISSIONER  TO  SECURE  THE
PAYMENT OF ANY SUMS DUE FROM SUCH PRODUCER PURSUANT TO THIS ARTICLE. THE
COMMISSIONER MAY REQUIRE THAT THE BOND OR OTHER SECURITY BE FILED BEFORE
A PRODUCER IS REGISTERED, AND THE AMOUNT THEREOF MAY BE INCREASED AT ANY
TIME  WHEN,  IN  HIS  OR  HER  JUDGMENT,  THE INCREASE IS NECESSARY AS A
PROTECTION TO THE REVENUES  UNDER  THIS  ARTICLE.  SECURITIES  DEPOSITED
UNDER  THIS  SUBDIVISION  WILL BE KEPT IN THE JOINT CUSTODY OF THE COMP-
TROLLER AND THE COMMISSIONER AND MAY BE SOLD BY THE  COMMISSIONER  IF  A
SALE  BECOMES NECESSARY TO RECOVER ANY SUMS DUE FROM THE PRODUCER PURSU-
ANT TO THIS ARTICLE, BUT NO SALE WILL BE HELD UNTIL AFTER  THE  PRODUCER
HAS  AN  OPPORTUNITY TO LITIGATE THE VALIDITY OF ANY TAX. AFTER ANY SALE
OF SUCH SECURITIES, THE AMOUNT, IF ANY, ABOVE THE SUMS  DUE  UNDER  THIS
ARTICLE  SHALL BE RETURNED TO THE PRODUCER. THE DEPARTMENT, WHEN AUTHOR-
IZED BY THE PRODUCER, MAY FURNISH INFORMATION REGARDING  THE  PRODUCER'S
REGISTRATION  AND ANY OTHER INFORMATION THAT THE PRODUCER AUTHORIZES THE
DEPARTMENT TO DISCLOSE.
  3. (A) THE REGISTRATION OF ANY PRODUCER MAY BE CANCELLED OR  SUSPENDED
BY  THE COMMISSIONER WHEN THE PRODUCER (I) FAILS TO FILE A BOND OR OTHER
SECURITY WHEN REQUIRED OR THE AMOUNT THEREOF IS INCREASED, OR (II) FAILS
TO CONTINUE TO MAINTAIN IN FULL  FORCE  AND  EFFECT  AT  ALL  TIMES  THE
REQUIRED BOND OR OTHER SECURITY FILED WITH THE COMMISSIONER.
  (B) NOTWITHSTANDING ANY OTHER PROVISION TO THE CONTRARY:
  (I)  IN THE EVENT THAT THE COMMISSIONER DETERMINES THAT AN INCREASE IN
THE AMOUNT OF THE BOND OR  OTHER  SECURITY  FILED  BY  A  REGISTRANT  IS
REQUIRED  TO SECURE THE LIABILITY OF SUCH REGISTRANT, THAT BOND INCREASE
OR OTHER SECURITY INCREASE SHALL BE FILED BY THE REGISTRANT WITHIN THIR-
TY DAYS FROM THE DAY THE NOTICE AND DEMAND THEREFOR HAS  BEEN  GIVEN  BY
THE  COMMISSIONER. IF THE REGISTRANT FAILS TO: (1) FILE THAT INCREASE IN
THE AMOUNT OF BOND OR OTHER SECURITY WITHIN THE THIRTY  DAY  PERIOD,  OR
(2)  MAKE TIMELY APPLICATION FOR A HEARING WITH RESPECT TO THE AMOUNT OF
THE INCREASE OF THE BOND  OR  OTHER  SECURITY,  THE  COMMISSIONER  SHALL
CANCEL OR SUSPEND THE REGISTRATION OF SUCH REGISTRANT.
  (II)  THE  REGISTRANT  MAY  APPLY TO THE DIVISION OF TAX APPEALS FOR A
HEARING TO REVIEW AN INCREASE IN THE AMOUNT OF THE BOND OR OTHER SECURI-
TY REQUIRED TO BE FILED BY MAKING APPLICATION THEREFOR WITHIN SEVEN DAYS
OF THE DAY THAT THE NOTICE AND DEMAND FOR AN INCREASE IS  GIVEN  BY  THE
COMMISSIONER,  PROVIDED, THE DIVISION OF TAX APPEALS MAY, BY REGULATION,
FOR THE CAUSES STATED THEREIN, EXTEND THE PERIOD TO A PERIOD NOT EXCEED-
ING FIFTEEN DAYS FROM THE DAY THAT NOTICE AND DEMAND IS  GIVEN.  IF  THE
REGISTRANT  TIMELY  APPLIES  FOR  A  HEARING TO REVIEW THE INCREASE, THE
HEARING SHALL BE HELD, UNLESS EXTENDED BY THE DIVISION  OF  TAX  APPEALS
FOR  GOOD CAUSE, NO LESS THAN SEVEN DAYS AND NO MORE THAN TEN DAYS AFTER
THE APPLICATION FOR A  HEARING  IS  RECEIVED  BY  THE  DIVISION  OF  TAX
APPEALS.  WITHIN  FIFTEEN  DAYS  OF THE RECEIPT OF THE APPLICATION FOR A
HEARING, UNLESS EXTENDED BY THE DIVISION OF TAX APPEALS, THE ADMINISTRA-

S. 6610                             8                            A. 9710

TIVE LAW JUDGE SHALL RENDER A DETERMINATION WITH RESPECT TO THE INCREASE
IN THE AMOUNT OF THE BOND OR OTHER SECURITY AND, IF THE  AMOUNT  OF  THE
BOND  OR  OTHER  SECURITY IS DETERMINED TO BE DUE, THE INCREASE SHALL BE
FILED  WITHIN SEVEN DAYS FROM THE DAY THE ADMINISTRATIVE LAW JUDGE GIVES
NOTICE OF THE DETERMINATION, OR, IF LATER, THIRTY DAYS FROM THE DAY  THE
NOTICE  AND  DEMAND FOR THE INCREASE HAD BEEN GIVEN BY THE COMMISSIONER.
NOTWITHSTANDING THAT THE REGISTRANT TAKES EXCEPTION TO  THE  ADMINISTRA-
TIVE  LAW JUDGE'S DETERMINATION THAT AN INCREASED BOND OR OTHER SECURITY
IS DUE, IF THE INCREASED BOND OR OTHER SECURITY IS NOT FILED WITHIN SUCH
TIME, THE COMMISSIONER SHALL CANCEL OR SUSPEND THE REGISTRATION  OF  THE
REGISTRANT.  WHERE  THE  ADMINISTRATIVE  LAW  JUDGE  DETERMINES  THAT AN
INCREASED BOND OR OTHER SECURITY IS NOT DUE BUT  THAT  DETERMINATION  IS
REVERSED  BY  THE  TAX  APPEALS TRIBUNAL, IF THE INCREASED BOND OR OTHER
SECURITY IS NOT FILED WITHIN SEVEN DAYS FROM THE  DAY  THE  TAX  APPEALS
TRIBUNAL GIVES NOTICE OF ITS DECISION, THEN NOTWITHSTANDING ANY JUDICIAL
REVIEW  OF  SUCH  DECISION OF THE TAX APPEALS TRIBUNAL, THE COMMISSIONER
SHALL CANCEL OR SUSPEND THE REGISTRATION OF THE REGISTRANT.
  4. THE REGISTRATION GRANTED TO A PRODUCER BY THE  COMMISSIONER  CANNOT
BE TRANSFERRED TO ANY OTHER PERSON WITHOUT THE PRIOR WRITTEN APPROVAL OF
THE  COMMISSIONER, AND ANY TRANSFER WITHOUT APPROVAL CONSTITUTES GROUNDS
FOR THE IMMEDIATE CANCELLATION OR SUSPENSION OF  THE  REGISTRATION.  THE
COMMISSIONER  MAY  ESTABLISH  BY RULE OR REGULATION A SPECIFIC PROCEDURE
FOR THE REVIEW OF AN APPLICATION FOR  REGISTRATION  IN  THOSE  INSTANCES
WHERE  THERE  HAS  BEEN A PROPOSED TRANSFER OF REGISTRATION. THE COMMIS-
SIONER, IN MAKING HIS OR HER DETERMINATION WITH RESPECT TO THE  APPROVAL
OF  A PROPOSED TRANSFER, WILL REVIEW THE APPLICATION AS ANY OTHER APPLI-
CATION FOR REGISTRATION IS REVIEWED UNDER THIS SECTION AND WILL MAKE HIS
OR HER DETERMINATION IN ACCORDANCE WITH THE CRITERIA SET FORTH  IN  THIS
SECTION. PROVIDED FURTHER, THE COMMISSIONER SHALL ISSUE A DETERMINATION,
WITH  RESPECT TO AN APPLICATION FOR A PROPOSED TRANSFER OF REGISTRATION,
WITHIN SEVENTY-FIVE DAYS AFTER THE DAY OF  THE  RECEIPT  OF  A  PROPERLY
COMPLETED  APPLICATION  CONTAINING  SUCH INFORMATION AS THE COMMISSIONER
MAY REQUIRE. IF THE COMMISSIONER FAILS TO ISSUE A  DETERMINATION  WITHIN
SUCH  TIME,  THE  COMMISSIONER WILL BE REQUIRED TO REGISTER THE PROPOSED
TRANSFEREE.
  S 403. RECORDS TO BE KEPT BY PRODUCERS. 1.  EVERY  PERSON  WHO  SEVERS
NATURAL  GAS  FROM  A GAS POOL IN THE MARCELLUS OR UTICA SHALE FORMATION
USING A HORIZONTAL WELL IN THIS STATE SHALL KEEP A COMPLETE AND ACCURATE
RECORD OF THE GROSS QUANTITY OF NATURAL GAS SEVERED AND THE MARKET VALUE
THEREOF, THE AMOUNT OF TAX DUE,  AND  ANY  OTHER  INFORMATION  THAT  THE
COMMISSIONER MAY REQUIRE FOR THE PROPER ENFORCEMENT OF THE PROVISIONS OF
THIS  ARTICLE.  SUCH  RECORDS  SHALL BE IN THE FORM AND CONTAIN WHATEVER
OTHER INFORMATION THE COMMISSIONER MAY PRESCRIBE. SUCH  RECORDS,  UNLESS
REQUIRED  BY THE COMMISSIONER TO BE PRESERVED FOR A LONGER PERIOD, SHALL
BE PRESERVED FOR A PERIOD OF  THREE  YEARS  AND  SHALL  BE  OFFERED  FOR
INSPECTION  AT  ANY TIME UPON ORAL OR WRITTEN DEMAND BY THE COMMISSIONER
OR THE COMMISSIONER'S DULY AUTHORIZED AGENTS. THE COMMISSIONER IS HEREBY
FURTHER AUTHORIZED TO EXAMINE THE EQUIPMENT OF ANY PERSON PERTAINING  TO
THE  SEVERANCE  OF  NATURAL GAS AND THE STOCK OF SUCH NATURAL GAS IN THE
POSSESSION OR CONTROL OF ANY PERSON. TO VERIFY THE  AMOUNT  OF  TAX  DUE
UNDER  THIS ARTICLE, EACH PERSON IS HEREBY DIRECTED AND REQUIRED TO GIVE
TO THE COMMISSIONER OR  THE  COMMISSIONER'S  DULY  AUTHORIZED  REPRESEN-
TATIVES  THE MEANS, FACILITIES, AND OPPORTUNITY FOR SUCH EXAMINATIONS AS
ARE HEREIN PROVIDED FOR AND REQUIRED.
  2. THE COMMISSIONER MAY, BY REGULATION,  PROVIDE  FOR  THE  FILING  OF
MONTHLY INFORMATION RETURNS BY EVERY PERSON REQUIRED TO MAINTAIN RECORDS

S. 6610                             9                            A. 9710

AS PRESCRIBED IN SUBDIVISION ONE OF THIS SECTION. THESE RETURNS SHALL IN
ALL  MATERIAL  RESPECTS REFLECT THE INFORMATION REQUIRED TO BE CONTAINED
IN THOSE RECORDS.  THESE RETURNS SHALL BE IN THE FORM  AND  CONTAIN  ALL
OTHER INFORMATION THE COMMISSIONER MAY REQUIRE.
  S  404.  PAYMENT  OF  TAX;  RETURNS. 1. ON OR BEFORE THE TWENTIETH DAY
AFTER THE END OF THE SECOND CALENDAR MONTH FOLLOWING A REPORTING PERIOD,
EVERY PRODUCER SHALL FILE WITH THE  DEPARTMENT  A  RETURN  IN  THE  FORM
PRESCRIBED BY THE COMMISSIONER THAT STATES THE GROSS QUANTITY OF NATURAL
GAS SEVERED AND THE MARKET VALUE THEREOF, THE AMOUNT OF TAX DUE, AND ANY
OTHER  INFORMATION  THAT  THE  COMMISSIONER  MAY  REQUIRE FOR THE PROPER
ENFORCEMENT OF THE PROVISIONS OF  THIS  ARTICLE.  THE  COMMISSIONER  MAY
REQUIRE THESE RETURNS TO BE FILED ELECTRONICALLY. THE COMMISSIONER SHALL
PRESCRIBE  THE  REPORTING PERIOD BY REGULATION AND MAY PERMIT THE FILING
OF RETURNS BY PRODUCERS ON A MONTHLY, QUARTERLY, SEMI-ANNUAL, OR  ANNUAL
BASIS.  THE  COMMISSIONER  MAY WAIVE THE FILING OF RETURNS BY A PRODUCER
FOR SUCH TIME AND UPON SUCH TERMS AS HE OR SHE MAY DEEM PROPER IF SATIS-
FIED THAT NO TAX IMPOSED BY THIS ARTICLE IS OR WILL BE  PAYABLE  BY  THE
PRODUCER  DURING  THE TIME FOR WHICH RETURNS ARE WAIVED. THE FACT THAT A
PRODUCER'S NAME IS SIGNED TO A FILED RETURN IS PRIMA FACIE EVIDENCE  FOR
ALL  PURPOSES THAT THE RETURN WAS ACTUALLY SIGNED BY THAT PRODUCER. EACH
SUCH PRODUCER SHALL PAY TO THE DEPARTMENT WITH THE FILING OF THE RETURN,
THE TAXES IMPOSED BY THIS ARTICLE  DURING  THE  PERIOD  COVERED  BY  THE
RETURN.  THE  COMMISSIONER MAY REQUIRE THAT THOSE PAYMENTS BE MADE ELEC-
TRONICALLY.
  2. A PRODUCER WHO IS ENTITLED TO A  REFUND  UNDER  THE  PROVISIONS  OF
SECTION FOUR HUNDRED NINE OF THIS ARTICLE, MAY TAKE CREDIT THEREFOR ON A
RETURN FILED PURSUANT TO THIS SECTION IN LIEU OF SUCH REFUND, UNLESS THE
COMMISSIONER WITHDRAWS THAT PRIVILEGE.
  S  405.  DETERMINATION OF TAX. 1. EXCEPT AS OTHERWISE PROVIDED IN THIS
SECTION, IF A PRODUCER FILES A  RETURN  UNDER  THIS  ARTICLE,  BUT  THAT
RETURN  IS INCORRECT OR INSUFFICIENT, THE COMMISSIONER MAY DETERMINE THE
AMOUNT OF TAX DUE AT ANY TIME WITHIN THREE YEARS AFTER  THE  RETURN  WAS
FILED  (WHETHER  OR NOT SUCH RETURN WAS FILED ON OR AFTER THE DUE DATE),
AND GIVE WRITTEN NOTICE OF THAT DETERMINATION TO THE PRODUCER.
  2. THE COMMISSIONER MAY DETERMINE THE AMOUNT OF TAX DUE AT ANY TIME IF
A PRODUCER (A) HAS NOT REGISTERED AS REQUIRED BY THIS ARTICLE, (B) FAILS
TO FILE A RETURN, OR (C) WILLFULLY DELIVERS OR DISCLOSES TO THE  COMMIS-
SIONER  ANY  LIST, RETURN, REPORT, ACCOUNT, STATEMENT, OR OTHER DOCUMENT
KNOWN BY THE PRODUCER TO BE FRAUDULENT OR TO BE FALSE AS TO ANY MATERIAL
MATTER, OR OMITS ANY MATERIAL MATTER WITH INTENT TO DECEIVE.
  3. NOTWITHSTANDING ANY OF THE FOREGOING PROVISIONS  OF  THIS  SECTION,
WHERE,  BEFORE THE EXPIRATION OF THE TIME PRESCRIBED IN THIS SECTION FOR
THE DETERMINATION OF TAX, BOTH THE COMMISSIONER AND  THE  PRODUCER  HAVE
CONSENTED  IN  WRITING TO ITS DETERMINATION AFTER SUCH TIME, THE TAX MAY
BE DETERMINED AT ANY TIME PRIOR TO THE EXPIRATION OF THE  PERIOD  AGREED
UPON. THE PERIOD SO AGREED UPON MAY BE EXTENDED BY SUBSEQUENT AGREEMENTS
MADE  IN  WRITING  BEFORE THE EXPIRATION OF THE PERIOD PREVIOUSLY AGREED
UPON.
  4. ANY DETERMINATION MADE PURSUANT TO THIS SECTION  WILL  FINALLY  AND
IRREVOCABLY FIX THE TAX UNLESS THE PRODUCER AGAINST WHOM IT IS ASSESSED,
WITHIN  NINETY  DAYS  AFTER  THE GIVING OF NOTICE OF SUCH DETERMINATION,
PETITIONS THE DIVISION OF TAX APPEALS  FOR  A  HEARING,  OR  UNLESS  THE
COMMISSIONER  ON  HIS  OR  HER OWN MOTION, RE-DETERMINES THE SAME. AFTER
SUCH HEARING, THE DIVISION OF TAX APPEALS WILL GIVE NOTICE OF THE DETER-
MINATION OF THE ADMINISTRATIVE LAW JUDGE TO THE PRODUCER LIABLE FOR  THE
TAX  AND  TO THE COMMISSIONER. THAT DETERMINATION MAY BE REVIEWED BY THE

S. 6610                            10                            A. 9710

TAX APPEALS TRIBUNAL AS PROVIDED IN ARTICLE FORTY OF THIS  CHAPTER.  THE
DECISION  OF  THE  TAX  APPEALS  TRIBUNAL MAY BE REVIEWED AS PROVIDED IN
SECTION TWO THOUSAND SIXTEEN OF THIS CHAPTER, BUT THE PROCEEDING MAY NOT
BE COMMENCED UNLESS THE AMOUNT OF TAX STATED OR REFERRED TO IN THE DECI-
SION, WITH PENALTIES AND INTEREST THEREON, IF ANY, AND THE AMOUNT OF ANY
OTHER  PENALTY STATED OR REFERRED TO IN THE DECISION, IS FIRST DEPOSITED
WITH THE COMMISSIONER.
  5. THE REMEDY PROVIDED BY THIS SECTION FOR REVIEW OF A DECISION OF THE
TAX APPEALS TRIBUNAL IS THE EXCLUSIVE REMEDY AVAILABLE TO  ANY  TAXPAYER
FOR  JUDICIAL  DETERMINATION  OF THE LIABILITY OF THE TAXPAYER FOR TAXES
UNDER THIS ARTICLE.
  S 406. PENALTIES AND INTEREST. 1. (A) A PRODUCER OR OTHER  PERSON  WHO
OR  WHICH  FAILS  TO  FILE  A  RETURN  OR TO PAY ANY TAX WITHIN THE TIME
REQUIRED BY THIS ARTICLE (DETERMINED WITH REGARD  TO  ANY  EXTENSION  OF
TIME  FOR  FILING  OR  PAYING)  WILL  BE SUBJECT TO A PENALTY OF TEN PER
CENTUM OF THE AMOUNT OF TAX DETERMINED TO BE DUE  AS  PROVIDED  IN  THIS
ARTICLE  PLUS  ONE  PER CENTUM OF SUCH AMOUNT FOR EACH MONTH OR FRACTION
THEREOF DURING WHICH THE FAILURE CONTINUES AFTER THE EXPIRATION  OF  THE
FIRST  MONTH  DURING  WHICH THAT RETURN WAS REQUIRED TO BE FILED OR SUCH
TAX BECAME DUE, NOT  EXCEEDING  THIRTY  PER  CENTUM  IN  THE  AGGREGATE.
PROVIDED,  HOWEVER,  IN  THE  CASE  OF A FAILURE TO FILE A RETURN WITHIN
SIXTY DAYS OF THE DATE PRESCRIBED FOR FILING OF A RETURN BY THIS ARTICLE
(DETERMINED WITH REGARD TO ANY EXTENSION OF TIME FOR FILING), THE PENAL-
TY IMPOSED BY THIS PARAGRAPH WILL NOT BE LESS THAN  THE  LESSER  OF  ONE
HUNDRED  DOLLARS  OR ONE HUNDRED PER CENTUM OF THE AMOUNT REQUIRED TO BE
SHOWN AS TAX ON THAT RETURN.  FOR THE PURPOSE OF THE PRECEDING SENTENCE,
THE AMOUNT OF TAX REQUIRED TO BE SHOWN ON THE RETURN WILL BE REDUCED  BY
THE  AMOUNT  OF  ANY  PART OF THE TAX THAT IS PAID ON OR BEFORE THE DATE
PRESCRIBED FOR PAYMENT OF THE TAX.
  (B) 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
UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SUBDIVISION  TWEN-
TY-SIXTH  OF  SECTION  ONE  HUNDRED SEVENTY-ONE OF THIS CHAPTER SHALL BE
PAID FOR THE PERIOD FROM THAT LAST DATE TO THE DATE PAID, WHETHER OR NOT
ANY EXTENSION OF TIME FOR PAYMENT WAS  GRANTED.    INTEREST  UNDER  THIS
PARAGRAPH  WILL  NOT  BE  OWED  IF  THE  AMOUNT THEREOF IS LESS THAN ONE
DOLLAR.
  (C) IF THE COMMISSIONER DETERMINES THAT SUCH FAILURE OR DELAY WAS  DUE
TO  REASONABLE CAUSE (AS DETERMINED UNDER REGULATIONS OF THE COMMISSION-
ER) AND NOT DUE TO WILLFUL NEGLECT, HE OR SHE SHALL ABATE ALL OR PART OF
SUCH PENALTY.
  (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
PROVIDED FOR IN PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION,  THERE  WILL
BE  ADDED  TO  THE TAX (I) A PENALTY OF TWO TIMES THE AMOUNT OF TAX DUE,
PLUS (II) INTEREST ON SUCH UNPAID TAX AT THE UNDERPAYMENT  RATE  SET  BY
THE  COMMISSIONER  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.
  (E) THE PENALTIES AND INTEREST PROVIDED FOR IN THIS  SECTION  WILL  BE
DETERMINED, ASSESSED, COLLECTED AND PAID IN THE SAME MANNER AS THE TAXES
IMPOSED  BY THIS ARTICLE AND WILL BE DISPOSED OF AS HEREINAFTER PROVIDED
WITH RESPECT TO MONEYS DERIVED FROM THE TAX.

S. 6610                            11                            A. 9710

  2. FOR PURPOSES OF THIS CHAPTER, THE FAILURE TO DO ANY ACT REQUIRED BY
THIS ARTICLE WILL BE DEEMED AN ACT COMMITTED IN PART AT  THE  OFFICE  OF
THE  DEPARTMENT IN ALBANY. FOR PURPOSES OF THIS CHAPTER, THE CERTIFICATE
OF THE DEPARTMENT TO THE EFFECT THAT A TAX HAS NOT  BEEN  PAID,  THAT  A
RETURN HAS NOT BEEN FILED, OR THAT INFORMATION HAS NOT BEEN SUPPLIED, AS
REQUIRED BY OR UNDER THE PROVISIONS OF THIS ARTICLE, OR THAT A CLAIM FOR
REFUND HAS BEEN FILED, WILL BE PRIMA FACIE EVIDENCE THAT THE TAX HAS NOT
BEEN  PAID,  THE RETURN HAS NOT BEEN FILED, THE INFORMATION HAS NOT BEEN
SUPPLIED, OR THE CLAIM HAS BEEN FILED.
  3. CROSS-REFERENCE: FOR CRIMINAL PENALTIES, SEE  ARTICLE  THIRTY-SEVEN
OF THIS CHAPTER.
  S  407.  MAILING  RULES;  HOLIDAYS. THE RULES SET FORTH IN SECTION TWO
HUNDRED EIGHTY-NINE-D OF THIS CHAPTER APPLY TO THIS ARTICLE.
  S 408. DEPOSIT AND DISPOSITION OF REVENUE.  ALL  TAXES,  INTEREST  AND
PENALTIES  COLLECTED  OR  RECEIVED  BY  THE COMMISSIONER UNDER THE TAXES
IMPOSED BY THIS ARTICLE WILL BE DEPOSITED AND DISPOSED  OF  PURSUANT  TO
THE PROVISIONS OF SECTION THREE HUNDRED TWELVE OF THIS CHAPTER.
  S 409. REFUNDS. 1. IN THE MANNER PROVIDED IN THIS SECTION, THE COMMIS-
SIONER  WILL REFUND OR CREDIT ANY TAX, PENALTY, OR INTEREST ERRONEOUSLY,
ILLEGALLY OR UNCONSTITUTIONALLY COLLECTED OR PAID IF APPLICATION  THERE-
FOR  IS  FILED  WITH  THE COMMISSIONER WITHIN THREE YEARS AFTER THE DATE
WHEN THE TAX, PENALTY, OR INTEREST WAS  PAID  UNDER  THIS  ARTICLE.  THE
APPLICATION SHALL BE IN A FORM PRESCRIBED BY THE COMMISSIONER.
  2.  IF  AN  APPLICATION FOR REFUND OR CREDIT IS FILED WITH THE COMMIS-
SIONER AS PROVIDED IN SUBDIVISION ONE OF THIS SECTION, THE  COMMISSIONER
SHALL  GRANT  OR  DENY  THAT  APPLICATION IN WHOLE OR IN PART WITHIN SIX
MONTHS OF RECEIPT OF THE APPLICATION IN A FORM THAT IS ABLE TO BE  PROC-
ESSED  AND SHALL NOTIFY THE APPLICANT BY MAIL ACCORDINGLY. THAT DETERMI-
NATION WILL BE FINAL AND IRREVOCABLE UNLESS THE APPLICANT, WITHIN NINETY
DAYS AFTER THE MAILING OF NOTICE OF SUCH  DETERMINATION,  PETITIONS  THE
DIVISION  OF  TAX APPEALS FOR A HEARING. AFTER THE HEARING, THE DIVISION
OF TAX APPEALS WILL MAIL NOTICE OF THE DETERMINATION OF THE  ADMINISTRA-
TIVE  LAW  JUDGE TO THE APPLICANT AND TO THE COMMISSIONER. THAT DETERMI-
NATION MAY BE REVIEWED BY THE TAX APPEALS TRIBUNAL AS PROVIDED IN  ARTI-
CLE  FORTY OF THIS CHAPTER. THE DECISION OF THE TAX APPEALS TRIBUNAL MAY
BE REVIEWED AS PROVIDED IN SECTION TWO THOUSAND SIXTEEN OF THIS CHAPTER.
  3. UPON RECEIPT OF A CLAIM FOR REFUND OR CREDIT IN  PROCESSIBLE  FORM,
INTEREST  WILL  BE  ALLOWED  AND PAID AT THE OVERPAYMENT RATE SET BY THE
COMMISSIONER PURSUANT TO SUBDIVISION TWENTY-SIXTH OF SECTION ONE HUNDRED
SEVENTY-ONE OF THIS CHAPTER, OR IF NO RATE IS SET, AT THE RATE OF  SEVEN
AND  ONE-HALF  PERCENT  PER  ANNUM CALCULATED FROM THE DATE THE CLAIM IS
FILED TO THE DATE IMMEDIATELY PRECEDING THE DATE  OF  THE  REFUND  CHECK
EXCEPT NO INTEREST WILL BE ALLOWED OR PAID IF THE REFUND CHECK IS MAILED
WITHIN  THIRTY  DAYS  OF  SUCH RECEIPT OR IF THE AMOUNT THEREOF WOULD BE
LESS THAN ONE DOLLAR. FOR PURPOSES OF THIS SUBDIVISION, A CLAIM WILL NOT
BE TREATED AS FILED UNTIL IT IS FILED IN PROCESSIBLE FORM. A CLAIM IS IN
A PROCESSIBLE FORM IF THE CLAIM  IS  FILED  ON  A  PERMITTED  FORM,  AND
CONTAINS  THE  TAXPAYER'S  NAME,  ADDRESS AND IDENTIFYING NUMBER AND THE
REQUIRED SIGNATURES, AND SUFFICIENT REQUIRED INFORMATION (WHETHER ON THE
CLAIM OR ON REQUIRED ATTACHMENTS) TO PERMIT THE  MATHEMATICAL  VERIFICA-
TION OF REFUND SHOWN ON THE CLAIM.
  S  410.  SECRECY.  1.  FOR  PURPOSES  OF  THIS  ARTICLE,  THE  SECRECY
PROVISIONS SET FORTH IN SECTION THREE HUNDRED FOURTEEN OF  THIS  CHAPTER
WILL APPLY.
  2.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  THIS SECTION: (A) UPON
AGREEMENT WITH THE HEAD OF THE DEPARTMENT OF ENVIRONMENTAL  CONSERVATION

S. 6610                            12                            A. 9710

OR  THE  UNITED STATES ENVIRONMENTAL PROTECTION AGENCY, THE COMMISSIONER
MAY DISCLOSE TO THAT AGENCY THE NAME, ADDRESS,  EMPLOYER  IDENTIFICATION
NUMBER,  APPLICATION STATUS INFORMATION, AND OTHER APPROPRIATE IDENTIFY-
ING  AND  APPLICATION  INFORMATION, OF (I) PERSONS WHOSE APPLICATION FOR
REGISTRATION UNDER THIS ARTICLE IS PENDING; (II) PERSONS HOLDING A VALID
REGISTRATION UNDER THIS ARTICLE; (III) PERSONS WHOSE REGISTRATION  UNDER
THIS  ARTICLE  HAS  BEEN  CANCELLED OR SUSPENDED; AND (IV) PERSONS WHOSE
REGISTRATION APPLICATION UNDER THIS ARTICLE HAS  BEEN  DENIED,  FOR  THE
PURPOSES  OF  IMPROVING THE SAFETY AND SECURITY OVERSIGHT OF THE NATURAL
GAS INDUSTRY AND COORDINATING AND STREAMLINING THE CREDENTIALING PROCESS
FOR SUCH INDUSTRY ADMINISTERED BY SUCH AGENCIES.
  (B) ANY INFORMATION DISCLOSED BY THE COMMISSIONER  PURSUANT  TO  PARA-
GRAPH (A) OF THIS SUBDIVISION MAY, PURSUANT TO SUCH AGREEMENT, BE REDIS-
CLOSED  BY  AND  AMONG THE HEADS OF SUCH AGENCIES AND MAY ALSO BE REDIS-
CLOSED TO THE HEADS OF COMPARABLE  AGENCIES  OF  ANY  OTHER  STATE,  THE
DISTRICT  OF COLUMBIA OR ANY PROVINCE OR TERRITORY OF CANADA IN FURTHER-
ANCE OF THE PURPOSES SPECIFIED IN THIS SUBDIVISION.
  3. THE COMMISSIONER MAY REQUEST FROM THE NEW YORK STATE DEPARTMENT  OF
ENVIRONMENTAL CONSERVATION AND THE NEW YORK STATE DEPARTMENT OF ENVIRON-
MENTAL  CONSERVATION  IS AUTHORIZED AND DIRECTED TO PROVIDE, ANY COOPER-
ATION AND ASSISTANCE, INCLUDING THE PROVISION OF  RELEVANT  INFORMATION,
THAT  WILL ENABLE THE COMMISSIONER TO ADMINISTER THE TAX IMPOSED BY THIS
ARTICLE.
  S 411. LIABILITY FOR OTHER TAXES NOT  AFFECTED.  PAYMENT  OF  THE  TAX
IMPOSED BY THIS ARTICLE BY A PRODUCER DOES NOT AFFECT THE REQUIREMENT OF
THAT  PRODUCER  TO PAY ANY OTHER STATE, LOCAL, OR OTHER TAX IMPOSED UPON
THE PRODUCER'S REAL OR PERSONAL PROPERTY OR THE PRODUCER'S OPERATIONS.
  S 4. The tax law is amended by adding a new section 1812-g to read  as
follows:
  S  1812-G. ARTICLE SEVENTEEN TAX. 1. ANY PERSON WHO WILLFULLY ATTEMPTS
IN ANY MANNER TO EVADE OR DEFEAT ANY TAX IMPOSED BY ARTICLE SEVENTEEN 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 A CLASS E FELONY.
  2. ANY WILLFUL ACT OR OMISSION, OTHER THAN THOSE DESCRIBED IN  SECTION
EIGHTEEN HUNDRED ONE OF THIS ARTICLE OR SUBDIVISION ONE OF THIS SECTION,
BY  ANY  PERSON  THAT AMOUNTS TO A VIOLATION OF ANY PROVISION OF ARTICLE
SEVENTEEN OF THIS CHAPTER CONSTITUTES A MISDEMEANOR.
  S 5. This act shall take effect September 1, 2010; provided,  however,
that  persons currently severing natural gas in this state and any other
person who is or will be subject to the  requirements  of  this  act  on
September 1, 2010 may begin submitting their certification that they are
not  required to register or their applications to register as producers
on July 1, 2010.

                                 PART B

  Section 1. Subdivision 1 of section 471 of the tax law, as amended  by
section  1 of part RR-1 of chapter 57 of the laws of 2008, is amended to
read as follows:
  1. There is hereby imposed and shall be paid a tax on  all  cigarettes
possessed  in the state by any person for sale, except that no tax shall
be imposed on cigarettes sold under such circumstances that  this  state
is without power to impose such tax or sold to the United States or sold
to  or by a voluntary unincorporated organization of the armed forces of

S. 6610                            13                            A. 9710

the United States operating a place for the sale of  goods  pursuant  to
regulations  promulgated  by  the  appropriate  executive  agency of the
United States, to the extent provided in  such  regulations  and  policy
statements of such an agency applicable to such sales. Such tax on ciga-
rettes  shall  be  at  the  rate of [two] THREE dollars and seventy-five
cents for each twenty cigarettes or fraction thereof, provided, however,
that if a package of cigarettes contains more  than  twenty  cigarettes,
the  rate  of  tax on the cigarettes in such package in excess of twenty
shall be [sixty-eight] NINETY-THREE and three-quarters  cents  for  each
five  cigarettes or fraction thereof. Such tax is intended to be imposed
upon only one sale of the  same  package  of  cigarettes.  It  shall  be
presumed  that  all cigarettes within the state are subject to tax until
the contrary is established, and the burden of proof that any cigarettes
are not taxable hereunder shall be upon the person in possession  there-
of.
  S  2.  Section  471-a  of the tax law, as amended by section 2 of part
RR-1 of chapter 57 of the laws of 2008, is amended to read as follows:
  S 471-a. Use tax on cigarettes. There is hereby imposed and  shall  be
paid  a  tax  on  all cigarettes used in the state by any person, except
that no tax shall be imposed (1) if the tax  provided  in  section  four
hundred  seventy-one  of  this  article is paid, (2) on the use of ciga-
rettes which are exempt from the tax imposed by said section, or (3)  on
the  use  of four hundred or less cigarettes, brought into the state on,
or in the possession of, any person. Such tax on cigarettes shall be  at
the  rate  of [two] THREE dollars and seventy-five cents for each twenty
cigarettes or fraction thereof, provided, however, that if a package  of
cigarettes  contains more than twenty cigarettes, the rate of tax on the
cigarettes in such package in excess of twenty  shall  be  [sixty-eight]
NINETY-THREE  and three-quarters cents for each five cigarettes or frac-
tion thereof.   Within twenty-four hours after  liability  for  the  tax
accrues,  each  such person shall file with the commissioner a return in
such form as the commissioner may prescribe together with  a  remittance
of  the  tax  shown to be due thereon. For purposes of this article, the
word "use" means the exercise of any right or power actual or  construc-
tive and shall include but is not limited to the receipt, storage or any
keeping  or  retention  for  any  length  of time, but shall not include
possession for sale. All other provisions of this article if not  incon-
sistent  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. Section 482 of the tax law, as amended by section 125-b of part C
of chapter 58 of the laws of 2009, is amended to read as follows:
  S 482. Deposit and disposition of revenue. (a) All taxes, fees, inter-
est  and  penalties collected or received by the commissioner under this
article and article twenty-A of this  chapter  shall  be  deposited  and
disposed  of  pursuant to the provisions of section one hundred seventy-
one-a of this chapter.  (b)  From  the  taxes,  interest  and  penalties
collected  or  received  by the commissioner under sections four hundred
seventy-one and four hundred seventy-one-a of this article, effective on
and  after  March  first,  two  thousand,  forty-nine   and   fifty-five
hundredths, and effective on and after February first, two thousand two,
forty-three  and  seventy  hundredths;  and  effective  on and after May
first, two thousand  two,  sixty-four  and  fifty-five  hundredths;  and
effective  on  and  after April first, two thousand three, sixty-one and
twenty-two hundredths percent; and effective on and  after  June  third,
two  thousand  eight,  seventy  and  sixty-three hundredths percent; AND

S. 6610                            14                            A. 9710

EFFECTIVE ON AND  AFTER  JUNE  FIRST,  TWO  THOUSAND  TEN,  SEVENTY-FIVE
PERCENT  collected or received under those sections must be deposited to
the credit of the tobacco control and insurance initiatives pool  to  be
established  and distributed by the commissioner of health in accordance
with section twenty-eight hundred seven-v of the public health law.  (c)
From  the  fees collected or received by the commissioner under subdivi-
sion two of section four hundred eighty-a of this article, effective  on
or  after  September  first,  two thousand nine, any monies collected or
received under that section in excess of three million dollars  must  be
deposited to the credit of the tobacco control and insurance initiatives
pool  to be distributed by the commissioner of health in accordance with
section twenty-eight hundred seven-v of the public health law.
  S 4. Notwithstanding any other provision of law to the  contrary,  the
tax  due  on  cigarettes  possessed in New York state as of the close of
business on May 31, 2010 by any person for sale solely  attributable  to
the increase imposed by the amendments to section 471 of the tax law, as
amended  by  section  one of this act, shall be paid by August 20, 2010,
subject to such terms and conditions as the commissioner of taxation and
finance shall prescribe.
  S 5. This act shall take effect June 2, 2010, and shall apply  to  all
cigarettes  possessed  in the state by any person for sale and all ciga-
rettes used in the state by any person on or after June 2, 2010.

                                 PART C

  Section 1. Paragraph a of subdivision twenty-sixth of section  171  of
the tax law, as amended by section 1 of subpart D of part V-1 of chapter
57 of the laws of 2009, is amended to read as follows:
  a. Set the overpayment and underpayment rates of interest for purposes
of  articles  twelve-A, SIXTEEN, 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
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.  Subdivision  1  of  section 171-a of the tax law, as amended by
section 1 of part R of chapter 60 of the laws of  2004,  is  amended  to
read as follows:
  1.  All  taxes,  interest, penalties and fees collected or received by
the commissioner or the commissioner's duly authorized agent under arti-
cles nine (except section one hundred eighty-two-a thereof and except as
otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
twelve-A  (except  as  otherwise provided in section two hundred eighty-
four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
section  three  hundred  twelve  thereof),  SIXTEEN (EXCEPT AS OTHERWISE
PROVIDED IN SECTION THREE HUNDRED SIXTY-FOUR THEREOF),  eighteen,  nine-
teen,  twenty  (except  as  otherwise  provided  in section four hundred

S. 6610                            15                            A. 9710

eighty-two thereof), twenty-one, twenty-two,  twenty-six,  twenty-six-B,
twenty-eight (except as otherwise provided in section eleven hundred two
or  eleven hundred three thereof), twenty-eight-A, thirty-one (except as
otherwise  provided  in  section  fourteen  hundred twenty-one thereof),
thirty-two, thirty-three and thirty-three-A of  this  chapter  shall  be
deposited  daily  in  one  account  with such responsible banks, banking
houses or trust companies as may be designated by  the  comptroller,  to
the credit of the comptroller. Such an account may be established in one
or  more  of such depositories. Such deposits shall be kept separate and
apart from all other money in the possession  of  the  comptroller.  The
comptroller  shall require adequate security from all such depositories.
Of the total revenue collected or received under such articles  of  this
chapter,  the  comptroller  shall retain in the comptroller's hands such
amount as the commissioner may determine to be necessary for refunds  or
reimbursements  under  such  articles  of  this chapter [and article ten
thereof] out of which amount the comptroller shall pay  any  refunds  or
reimbursements to which taxpayers shall be entitled under the provisions
of  such articles of this chapter [and article ten thereof]. The commis-
sioner and the comptroller shall maintain a system of  accounts  showing
the  amount  of  revenue  collected  or  received from each of the taxes
imposed by such articles. The comptroller, after reserving the amount to
pay such refunds or reimbursements, shall, on or before the tenth day of
each month, pay into the state treasury to the  credit  of  the  general
fund  all  revenue  deposited  under  this  section during the preceding
calendar month and remaining to the comptroller's credit on the last day
of such preceding month, (i) except that the comptroller  shall  pay  to
the  state  department of social services that amount of overpayments of
tax imposed by article twenty-two of this chapter and  the  interest  on
such amount which is certified to the comptroller by the commissioner as
the  amount to be credited against past-due support pursuant to subdivi-
sion six of section one hundred seventy-one-c of this [chapter] ARTICLE,
(ii) and except that the comptroller shall pay to  the  New  York  state
higher  education  services  corporation and the state university of New
York or the city university of New  York  respectively  that  amount  of
overpayments  of  tax  imposed by article twenty-two of this chapter and
the interest on such amount which is certified to the comptroller by the
commissioner as the amount to be credited against the amount of defaults
in repayment of guaranteed student loans and state university  loans  or
city  university  loans  pursuant  to  subdivision  five  of section one
hundred seventy-one-d and subdivision six of section one hundred  seven-
ty-one-e  of  this  [chapter]  ARTICLE,  (iii)  and except further that,
notwithstanding any law, the comptroller shall  credit  to  the  revenue
arrearage account, pursuant to section ninety-one-a of the state finance
law,  that amount of overpayment of tax imposed by article nine, nine-A,
twenty-two, thirty, thirty-A, thirty-B, thirty-two  or  thirty-three  of
this  chapter, and any interest thereon, which is certified to the comp-
troller by the commissioner as the amount to be credited against a past-
due legally enforceable debt owed to a state agency  pursuant  to  para-
graph  (a)  of  subdivision  six of section one hundred seventy-one-f of
this article, provided, however, he OR SHE shall credit to  the  special
offset  fiduciary account, pursuant to section ninety-one-c of the state
finance law, any such amount creditable as a liability as set  forth  in
paragraph (b) of subdivision six of section one hundred seventy-one-f of
this  article, (iv) and except further that the comptroller shall pay to
the city of New York that amount of overpayment of tax imposed by  arti-
cle nine, nine-A, twenty-two, thirty, thirty-A, thirty-B, thirty-two, or

S. 6610                            16                            A. 9710

thirty-three  of this chapter and any interest thereon that is certified
to the comptroller by the commissioner as  the  amount  to  be  credited
against  city  of New York tax warrant judgment debt pursuant to section
one  hundred  seventy-one-l of this article, (v) and except further that
the comptroller shall pay to a non-obligated spouse that amount of over-
payment of tax imposed by article twenty-two of  this  chapter  and  the
interest  on such amount which has been credited pursuant to section one
hundred seventy-one-c, one hundred seventy-one-d, one  hundred  seventy-
one-e,  one  hundred  seventy-one-f or one hundred seventy-one-l of this
article and which is certified to the comptroller by the commissioner as
the amount due such non-obligated spouse pursuant to  paragraph  six  of
subsection  (b)  of  section  six hundred fifty-one of this chapter; and
(vi) the comptroller shall deduct a like amount  which  the  comptroller
shall  pay  into  the  treasury  to  the credit of the general fund from
amounts subsequently payable to the department of social  services,  the
state  university  of  New York, the city university of New York, or the
higher education services corporation, or the revenue arrearage  account
or  special offset fiduciary account pursuant to section ninety-one-a or
ninety-one-c of the state finance law, as the case may be, whichever had
been credited the amount originally withheld from such overpayment,  and
(vii)  with respect to amounts originally withheld from such overpayment
pursuant to section one hundred seventy-one-l of this article  and  paid
to  the  city  of  New York, the comptroller shall collect a like amount
from the city of New York.
  S 3. The tax law is amended by adding a new  article  16  to  read  as
follows:
                               ARTICLE 16
                 TAX ON BEVERAGE SYRUPS AND SOFT DRINKS
SECTION 350. GENERAL DEFINITIONS.
        351. IMPOSITION OF TAX.
        352. EXEMPTIONS.
        353. REGISTRATION OF DISTRIBUTORS.
        354. BONDS OF DISTRIBUTORS.
        355. CANCELLATION OR SUSPENSION OF REGISTRATION OF DISTRIBUTORS.
        356. PRESUMPTION OF TAXABILITY.
        357. RECORDS TO BE KEPT BY DISTRIBUTORS AND OTHERS; EXAMINATION.
        358. PAYMENT OF TAX; RETURNS.
        359. DETERMINATION OF TAX.
        360. PROCEEDINGS TO RECOVER TAX.
        361. PENALTIES AND INTEREST.
        362. REFUNDS.
        363. MAILING RULES; HOLIDAYS.
        364. DEPOSIT AND DISPOSITION OF REVENUE.
  S 350. GENERAL DEFINITIONS. AS USED IN THIS ARTICLE: 1. "BOTTLE" MEANS
ANY  CLOSED  OR  SEALED  GLASS,  METAL,  PAPER, PLASTIC OR OTHER TYPE OF
CONTAINER, REGARDLESS OF SIZE OR SHAPE.
  2. "BOTTLED SOFT DRINK" MEANS ANY SOFT DRINK CONTAINED IN A BOTTLE.
  3. "DIETARY AID" MEANS A  LIQUID  PRODUCT  THAT  IS  INTENDED  BY  ITS
MANUFACTURER  FOR  USE  AS  (A)  A  REPLACEMENT FOR A DAILY MEAL FOR THE
PURPOSES OF WEIGHT REDUCTION, (B)  AN  ORAL  NUTRITIONAL  THERAPY  WHERE
CALORIC  AND  DIETARY NUTRIENTS FROM FOOD CANNOT BE ABSORBED OR METABOL-
IZED, (C) A SOURCE OF NECESSARY NUTRITION DUE TO A MEDICAL CONDITION, OR
(D) AN ORAL ELECTROLYTE SOLUTION FOR INFANTS AND CHILDREN FORMULATED  TO
PREVENT DEHYDRATION DUE TO DIARRHEA OR VOMITING.
  4.  "DISTRIBUTOR"  MEANS  ANY  PERSON  WHO (A) IMPORTS OR CAUSES TO BE
IMPORTED INTO THE STATE, FOR USE,  DISTRIBUTION,  BOTTLING,  STORAGE  OR

S. 6610                            17                            A. 9710

SALE ANY (I) SYRUPS OR SIMPLE SYRUPS, (II) BOTTLED SOFT DRINKS, OR (III)
POWDERS  OR  BASE  PRODUCTS, OR (B) PRODUCES, REFINES, BOTTLES, MANUFAC-
TURES, COMPOUNDS OR MIXES (I) SYRUPS OR SIMPLE SYRUPS, (II) BOTTLED SOFT
DRINKS, OR (III) POWDERS OR BASE PRODUCTS.
  5.  "INFANT  FORMULA"  MEANS  ANY  PRODUCT,  WHETHER SOLD IN LIQUID OR
POWDER FORM, THAT IS INTENDED BY ITS  MANUFACTURER  FOR  CONSUMPTION  BY
INFANTS AND THAT IS COMMONLY REFERRED TO AS INFANT FORMULA.
  6.  "MILK"  MEANS  NATURAL LIQUID MILK, REGARDLESS OF ANIMAL SOURCE OR
BUTTERFAT CONTENT; AND NATURAL MILK CONCENTRATE, WHETHER OR  NOT  RECON-
STITUTED,  REGARDLESS  OF  ANIMAL  SOURCE OR BUTTERFAT CONTENT; OR DEHY-
DRATED NATURAL MILK, WHETHER OR NOT RECONSTITUTED.
  7. "MILK PRODUCT" MEANS ANY LIQUID THAT HAS MILK  AS  THE  PREDOMINANT
INGREDIENT  BY  WEIGHT  IN ACCORDANCE WITH THE REGULATIONS OF THE UNITED
STATES FOOD AND DRUG ADMINISTRATION.
  8. "MILK SUBSTITUTE"  MEANS  ANY  LIQUID  THAT  IS  SOY-BASED  AND  IS
INTENDED BY ITS MANUFACTURER AS A SUBSTITUTE FOR MILK.
  9.  "NATURAL FRUIT JUICE" MEANS THE ORIGINAL LIQUID RESULTING FROM THE
PRESSING OF FRUIT, THE LIQUID RESULTING FROM THE RECONSTITUTION OF FRUIT
JUICE CONCENTRATE OR THE LIQUID RESULTING FROM THE RESTORATION OF  WATER
TO DEHYDRATED FRUIT JUICE.
  10. "NATURAL VEGETABLE JUICE" MEANS THE ORIGINAL LIQUID RESULTING FROM
THE PRESSING OF VEGETABLES, THE LIQUID RESULTING FROM THE RECONSTITUTION
OF VEGETABLE JUICE CONCENTRATE OR THE LIQUID RESULTING FROM THE RESTORA-
TION OF WATER TO DEHYDRATED VEGETABLE JUICE.
  11.  "NONALCOHOLIC  BEVERAGE"  MEANS  ANY  BEVERAGE NOT SUBJECT TO TAX
UNDER ARTICLE EIGHTEEN OF THIS CHAPTER.
  12. "PERSON" INCLUDES AN INDIVIDUAL,  PARTNERSHIP,  LIMITED  LIABILITY
COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY, CORPORATION, ESTATE,
RECEIVER,  TRUSTEE,  ASSIGNEE, REFEREE, AND ANY OTHER PERSON ACTING IN A
FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER APPOINTED BY  A  COURT  OR
OTHERWISE, AND ANY COMBINATION OF THE FOREGOING.
  13.  "PLACE  OF  BUSINESS"  MEANS ANY PLACE WHERE (A) SYRUPS OR SIMPLE
SYRUPS (B) BOTTLED SOFT DRINKS, OR (C)  POWDERS  OR  BASE  PRODUCTS  ARE
EITHER MANUFACTURED OR RECEIVED.
  14.  "POWDER  OR BASE PRODUCT" MEANS A SOLID MIXTURE OF BASIC INGREDI-
ENTS USED IN MAKING, MIXING, OR COMPOUNDING SOFT DRINKS, BY  MIXING  THE
POWDER OR OTHER BASE WITH WATER, ICE, SYRUP, SIMPLE SYRUP, FRUITS, VEGE-
TABLES,  FRUIT  JUICE,  VEGETABLE JUICE OR ANY OTHER PRODUCT SUITABLE TO
MAKE A SOFT DRINK.
  15. "RETAIL DEALER" MEANS ANY PERSON, OTHER THAN  A  DISTRIBUTOR,  WHO
SELLS OR DISPENSES A SOFT DRINK TO AN ULTIMATE CONSUMER.
  16. "SALE" MEANS ANY TRANSFER OF TITLE OR POSSESSION OR BOTH, EXCHANGE
OR  BARTER,  RENTAL,  LEASE OR LICENSE TO USE OR CONSUME, CONDITIONAL OR
OTHERWISE, IN ANY MANNER OR BY ANY MEANS WHATSOEVER  FOR  CONSIDERATION,
OR ANY AGREEMENT THEREFOR.
  17. "SIMPLE SYRUP" MEANS A MIXTURE OF SUGAR AND WATER.
  18. "SOFT DRINK" MEANS ANY NONALCOHOLIC BEVERAGE, WHETHER NATURALLY OR
ARTIFICIALLY  FLAVORED,  WHETHER  CARBONATED  OR NONCARBONATED, SOLD FOR
HUMAN CONSUMPTION, CONTAINING MORE THAN TEN CALORIES PER  EIGHT  OUNCES,
INCLUDING,  BUT NOT LIMITED TO, (A) SODA, WATER, SPORTS DRINKS, "ENERGY"
DRINKS, COLAS, FLAVORED DRINKS, (B) FRUIT OR VEGETABLE DRINKS CONTAINING
LESS THAN SEVENTY PERCENT (70%) OF NATURAL FRUIT JUICE OR NATURAL  VEGE-
TABLE  JUICE,  OR  A COMBINATION OF JUICES, ANY FROZEN, FREEZE-DRIED, OR
OTHER CONCENTRATE TO WHICH WATER IS ADDED TO PRODUCE A BEVERAGE CONTAIN-
ING LESS THAN SEVENTY PERCENT (70%) OF NATURAL FRUIT  JUICE  OR  NATURAL
VEGETABLE JUICE, AND (C) COFFEE AND TEA BOTTLED AS A LIQUID FOR SALE.

S. 6610                            18                            A. 9710

  19.  "SYRUP"  MEANS  THE  LIQUID  MIXTURE OF BASIC INGREDIENTS USED IN
MAKING, MIXING OR COMPOUNDING SOFT DRINKS,  BY  MIXING  THE  SYRUP  WITH
WATER,  SIMPLE  SYRUP,  ICE,  FRUITS, VEGETABLES, FRUIT JUICE, VEGETABLE
JUICE OR ANY OTHER PRODUCT SUITABLE TO MAKE A SOFT DRINK.
  20.  "USE"  MEANS  ANY  (A)  COMPOUNDING OR MIXING OF SYRUPS OR SIMPLE
SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS  OR  BASE  PRODUCTS  WITH  OTHER
INGREDIENTS  OR  OTHER  TREATMENT  OR  (B)  THE  ACTUAL  CONSUMPTION  OR
POSSESSION FOR CONSUMPTION OF SYRUPS  OR  SIMPLE  SYRUPS,  BOTTLED  SOFT
DRINKS, OR POWDERS OR BASE PRODUCTS AS A BEVERAGE OR OTHERWISE.
  S 351. IMPOSITION OF TAX. 1. THERE ARE LEVIED AND IMPOSED TAXES AT THE
FOLLOWING RATES ON:
  (A)  SYRUPS  OR SIMPLE SYRUPS, THE TAX RATE SHALL BE SEVEN DOLLARS AND
SIXTY-EIGHT CENTS PER GALLON BASED ON ONE GALLON BEING CONSTITUTED  INTO
SEVEN HUNDRED SIXTY-EIGHT OUNCES OF SOFT DRINK. IN THE EVENT SUCH GALLON
OF  SYRUP  OR  SIMPLE SYRUP RECONSTITUTES A GREATER AMOUNT OF SOFT DRINK
THE RATE OF TAX PER GALLON SHALL BE INCREASED PROPORTIONALLY TO BE BASED
ON THE ACTUAL NUMBER OF FLUID OUNCES OF  SOFT  DRINK  PRODUCED  BY  SUCH
GALLON OF SYRUP OR SIMPLE SYRUP;
  (B)  BOTTLED SOFT DRINKS, THE TAX RATE SHALL BE ONE DOLLAR AND TWENTY-
EIGHT CENTS PER GALLON; AND
  (C) POWDERS OR BASE PRODUCTS, THE TAX RATE SHALL  BE  ONE  DOLLAR  AND
TWENTY-EIGHT  CENTS  FOR  EACH GALLON OF SOFT DRINK THAT MAY BE PRODUCED
FROM EACH PACKAGE OR CONTAINER OF POWDERS OR BASE PRODUCTS BY  FOLLOWING
THE MANUFACTURER'S DIRECTIONS.
  2.  THE  TAXES  SHALL BE IMPOSED WHEN THE (A) SYRUPS OR SIMPLE SYRUPS,
BOTTLED SOFT DRINKS, OR POWDERS OR BASE PRODUCTS ARE  IMPORTED  INTO  OR
CAUSED  TO  BE  IMPORTED INTO THE STATE FOR USE, DISTRIBUTION, BOTTLING,
STORAGE, OR SALE IN THE STATE OR  (B)  UPON  SYRUPS  OR  SIMPLE  SYRUPS,
BOTTLED  SOFT  DRINKS,  OR  POWDERS OR BASE PRODUCTS WHICH ARE PRODUCED,
REFINED, BOTTLED, MANUFACTURED, COMPOUNDED OR MIXED BY A DISTRIBUTOR  IN
THE  STATE  (WHICH  ACTS SHALL HEREINAFTER IN THIS SUBDIVISION BE ENCOM-
PASSED BY THE PHRASE "IMPORTED OR MANUFACTURED").
  3. FOR PURPOSES OF THIS CHAPTER, IT IS PRESUMED THAT SYRUPS AND SIMPLE
SYRUPS ARE POSSESSED FOR THE PURPOSE OF SALE IN THIS STATE. IT  IS  ALSO
PRESUMED  THAT  BOTTLED  SOFT  DRINKS  OR  POWDERS  OR BASE PRODUCTS ARE
POSSESSED FOR THE PURPOSE OF SALE IN  THIS  STATE  IF  THE  QUANTITY  OF
BOTTLED SOFT DRINKS OR POWDERS OR BASE PRODUCTS POSSESSED IN THIS STATE,
IMPORTED  OR CAUSED TO BE IMPORTED INTO THIS STATE OR PRODUCED, REFINED,
BOTTLED, MANUFACTURED, COMPOUNDED OR MIXED IN THIS  STATE  EXCEEDS  FIVE
GALLONS.  SUCH  PRESUMPTION  MAY  BE  REBUTTED  BY  THE  INTRODUCTION OF
SUBSTANTIAL EVIDENCE TO THE CONTRARY. IN ANY CASE WHERE THE QUANTITY  OF
SYRUPS  AND  SIMPLE  SYRUPS,  BOTTLE  SOFT  DRINKS,  OR  POWDERS OR BASE
PRODUCTS TAXABLE PURSUANT TO THIS ARTICLE IS A FRACTIONAL  PART  OF  ONE
GALLON OR AN AMOUNT GREATER THAN A WHOLE MULTIPLE OF GALLONS, THE AMOUNT
OF  TAX  LEVIED  AND  IMPOSED  ON SUCH FRACTIONAL PART OF ONE GALLON, OR
FRACTIONAL PART OF A GALLON IN EXCESS OF A  WHOLE  MULTIPLE  OF  GALLONS
SHALL  BE SUCH FRACTIONAL PART OF THE RATE IMPOSED BY SUBDIVISION ONE OF
THIS SECTION.
  4. WHEN A RETAILER PURCHASES SYRUPS OR  SIMPLE  SYRUPS,  BOTTLED  SOFT
DRINKS,  OR POWDERS OR BASE PRODUCTS FROM ANY PERSON NOT REGISTERED AS A
DISTRIBUTOR, THE RETAILER SHALL BE LIABLE FOR THE TAX IMPOSED IN  SUBDI-
VISION ONE OF THIS SECTION.
  5.  NOTHING  IN THIS ARTICLE SHALL BE CONSTRUED TO REQUIRE THE PAYMENT
TO THE DEPARTMENT OF THE TAXES IMPOSED  BY  THIS  ARTICLE  ON  THE  SAME
GALLON OF PRODUCT MORE THAN ONCE.

S. 6610                            19                            A. 9710

  S  352. EXEMPTIONS. THE FOLLOWING SHALL BE EXEMPT FROM THE TAX IMPOSED
BY THIS ARTICLE ON:
  1. PRODUCTS.
  (A) DIETARY AIDS.
  (B) INFANT FORMULA.
  (C) MILK, MILK PRODUCTS AND MILK SUBSTITUTES.
  2.  EXPORTS.  SYRUPS OR SIMPLE SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS
OR BASE PRODUCTS IMPORTED OR CAUSED TO BE IMPORTED INTO  THIS  STATE  OR
PRODUCED,  REFINED,  BOTTLED,  MANUFACTURED, COMPOUNDED OR MIXED IN THIS
STATE BY A DISTRIBUTOR, WHERE SUCH DISTRIBUTOR OR THE IMMEDIATE PURCHAS-
ER OF SUCH SYRUPS OR SIMPLE SYRUPS, BOTTLED SOFT DRINKS, OR  POWDERS  OR
BASE  PRODUCTS  EXPORTS  SUCH  PRODUCTS  FROM THIS STATE FOR SALE OR USE
OUTSIDE THE STATE. IN ORDER TO RECEIVE  THIS  EXEMPTION,  A  DISTRIBUTOR
SHALL  HAVE  TO  COMPLY WITH ALL EVIDENTIARY REQUIREMENTS OF THE COMMIS-
SIONER.
  3. SALES TO THE FEDERAL GOVERNMENT. SYRUPS OR SIMPLE  SYRUPS,  BOTTLED
SOFT  DRINKS,  OR  POWDERS  OR  BASE  PRODUCTS  IMPORTED OR CAUSED TO BE
IMPORTED INTO THIS STATE OR PRODUCED,  REFINED,  BOTTLED,  MANUFACTURED,
COMPOUNDED  OR  MIXED  IN  THIS STATE BY A DISTRIBUTOR, AND THEN SOLD BY
SUCH DISTRIBUTOR TO AN ORGANIZATION DESCRIBED IN PARAGRAPH TWO OF SUBDI-
VISION (A) OF SECTION ELEVEN HUNDRED SIXTEEN OF THIS CHAPTER WHERE  SUCH
SYRUPS  OR  SIMPLE  SYRUPS,  BOTTLED  SOFT  DRINKS,  OR  POWDERS OR BASE
PRODUCTS ARE USED BY SUCH ORGANIZATION FOR ITS OWN USE OR CONSUMPTION.
  4. IMPORTATION FOR PERSONAL USE AND CONSUMPTION. BOTTLED  SOFT  DRINKS
OR  POWDERS OR BASE PRODUCTS IMPORTED OR CAUSED TO BE IMPORTED INTO THIS
STATE IN THE POSSESSION OF AN INDIVIDUAL IN THE AMOUNT OF ONE GALLON  OR
LESS PER MONTH FOR SUCH INDIVIDUAL'S OWN USE AND CONSUMPTION.
  5.  MANUFACTURE FOR PERSONAL USE AND CONSUMPTION. SOFT DRINKS MANUFAC-
TURED FOR SUCH INDIVIDUAL'S OWN USE AND CONSUMPTION AND NOT FOR RESALE.
  S 353. REGISTRATION OF DISTRIBUTORS.   1.  (A)  THE  COMMISSIONER  MAY
REGISTER  PERSONS AS DISTRIBUTORS UNDER THIS ARTICLE AS THE COMMISSIONER
SHALL PRESCRIBE. IF THE COMMISSIONER REGISTERS DISTRIBUTORS, THE COMMIS-
SIONER SHALL REGISTER DISTRIBUTORS UPON APPLICATION.    THE  APPLICATION
SHALL  BE  IN  A  FORM  AND  CONTAIN SUCH DATA AS THE COMMISSIONER SHALL
PRESCRIBE.
  (B)  IF  THE  COMMISSIONER  REGISTERS  DISTRIBUTORS,   THE   FOLLOWING
PROVISIONS APPLY. NO PERSON, UNLESS SO REGISTERED, SHALL IMPORT OR CAUSE
ANY  SYRUPS  OR  SIMPLE  SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS OR BASE
PRODUCTS TO BE IMPORTED INTO THE STATE, FOR USE,  DISTRIBUTION,  STORAGE
OR  SALE WITHIN THE STATE OR SHALL PRODUCE, REFINE, BOTTLE, MANUFACTURE,
COMPOUND OR MIX SYRUPS OR SIMPLE SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS
OR BASE PRODUCTS WITHIN THE STATE. NO DISTRIBUTOR, UNLESS SO REGISTERED,
SHALL MAKE ANY SALE, TRANSFER, USE OR OTHER  DISPOSITION  OF  SYRUPS  OR
SIMPLE  SYRUPS,  BOTTLED SOFT DRINKS, OR POWDERS OR BASE PRODUCTS WITHIN
THIS STATE, EXCEPT A SALE, TRANSFER, USE OR DISPOSITION, IF ANY,  AS  TO
WHICH  THIS  STATE  CANNOT IMPOSE SUCH CONDITION BY REASON OF THE UNITED
STATES CONSTITUTION AND OF LAWS OF THE UNITED  STATES  ENACTED  PURSUANT
THERETO.   PROVIDED, HOWEVER, THAT THE COMMISSIONER MAY EXCLUDE FROM THE
REGISTRATION REQUIREMENTS, ANY PERSON WHO IS A DISTRIBUTOR OF SYRUPS  OR
SIMPLE  SYRUPS,  BOTTLED SOFT DRINKS, OR POWDERS OR BASE PRODUCTS SOLELY
BY REASON OF THE IMPORTATION INTO  THIS  STATE  OF  NO  MORE  THAN  FIVE
GALLONS  OF  BOTTLED  SOFT DRINKS OR POWDERS OR BASE PRODUCTS SUBJECT TO
TAX BY THIS ARTICLE EACH  MONTH  FOR  SUCH  PERSON'S  PERSONAL  USE  AND
CONSUMPTION.

S. 6610                            20                            A. 9710

  2. IF THE COMMISSIONER REGISTERS DISTRIBUTORS, THE REGISTRATION GRANT-
ED  TO  A  DISTRIBUTOR  BY  THE  COMMISSIONER SHALL NOT BE ASSIGNABLE OR
TRANSFERABLE.
  S  354.  BONDS  OF  DISTRIBUTORS.  1.  IF  THE  COMMISSIONER REGISTERS
DISTRIBUTORS, THE COMMISSIONER MAY ALSO REQUIRE  BONDS  AS  PROVIDED  IN
THIS SECTION.
  2. THE COMMISSIONER MAY REQUIRE A DISTRIBUTOR TO FILE WITH THE COMMIS-
SIONER  A BOND ISSUED BY A SURETY COMPANY APPROVED BY THE SUPERINTENDENT
OF INSURANCE AS TO SOLVENCY AND RESPONSIBILITY AND AUTHORIZED TO  TRANS-
ACT BUSINESS IN THIS STATE OR ANOTHER SECURITY ACCEPTABLE TO THE COMMIS-
SIONER,  IN  SUCH AMOUNT FIXED BY THE COMMISSIONER TO SECURE THE PAYMENT
OF ANY SUMS DUE FROM SUCH DISTRIBUTOR PURSUANT TO THIS ARTICLE.
  3. THE COMMISSIONER MAY REQUIRE THAT THE BOND  OR  OTHER  SECURITY  BE
FILED  BEFORE A DISTRIBUTOR IS REGISTERED, OR AT ANY TIME WHEN IN HIS OR
HER JUDGMENT A BOND IS NECESSARY FOR  THE  PROTECTION  OF  THE  REVENUES
UNDER THIS ARTICLE.
  4.  THE  COMMISSIONER  MAY  REQUIRE THAT THE AMOUNT OF A BOND OR OTHER
SECURITY BE INCREASED AT ANY TIME WHEN, IN  HIS  OR  HER  JUDGMENT,  THE
INCREASE  IS  NECESSARY AS A PROTECTION TO THE REVENUES UNDER THIS ARTI-
CLE.
  5. IF SECURITIES ARE DEPOSITED UNDER THIS  SECTION,  THESE  SECURITIES
SHALL  BE  KEPT  IN THE JOINT CUSTODY OF THE COMPTROLLER AND THE COMMIS-
SIONER AND MAY BE SOLD BY THE COMMISSIONER IF A SALE  BECOMES  NECESSARY
TO  RECOVER  ANY SUMS DUE FROM THE DISTRIBUTOR PURSUANT TO THIS ARTICLE,
BUT NO SALE SHALL BE HELD UNTIL AFTER THE DISTRIBUTOR SHALL HAVE HAD  AN
OPPORTUNITY  TO  LITIGATE THE VALIDITY OF ANY TAX. AFTER ANY SALE OF THE
SECURITIES, THE SURPLUS AMOUNT, IF ANY, ABOVE THE SUMS  DUE  UNDER  THIS
ARTICLE SHALL BE RETURNED TO THE DISTRIBUTOR.
  S  355. CANCELLATION OR SUSPENSION OF REGISTRATION OF DISTRIBUTORS. IF
THE  COMMISSIONER  REGISTERS  DISTRIBUTORS,  THE  REGISTRATION  OF   ANY
DISTRIBUTOR  MAY  BE  CANCELLED BY THE COMMISSIONER UPON A DISTRIBUTOR'S
FAILURE TO FILE A BOND OR OTHER SECURITY WHEN REQUIRED, AND  THE  REGIS-
TRATION  OF  A  DISTRIBUTOR  MAY BE CANCELLED BY THE COMMISSIONER UPON A
DISTRIBUTOR'S FAILURE TO COMPLY WITH ANY OF THE PROVISIONS OF THIS ARTI-
CLE OR ANY REASONABLE REQUIREMENT, RULE OR REGULATION  ADOPTED  PURSUANT
TO THIS ARTICLE. ALL THE PROVISIONS OF SUBDIVISIONS FOUR THROUGH SIX AND
EIGHT  THROUGH  TEN  OF SECTION TWO HUNDRED EIGHTY-THREE OF THIS CHAPTER
RELATING TO REGISTRATION OF DISTRIBUTORS OF MOTOR FUEL SHALL BE APPLICA-
BLE TO THE REGISTRATION OF DISTRIBUTORS UNDER THIS ARTICLE WITH THE SAME
FORCE AND EFFECT AS IF THE  LANGUAGE  OF  THOSE  SUBDIVISIONS  HAD  BEEN
INCORPORATED  IN  FULL IN THIS SECTION AND HAD EXPRESSLY REFERRED TO THE
REGISTRATION OF DISTRIBUTORS UNDER THIS ARTICLE AND THE TAX  IMPOSED  BY
THIS  ARTICLE,  WITH  SUCH  MODIFICATION AS MAY BE NECESSARY IN ORDER TO
ADAPT THE LANGUAGE OF SUCH PROVISIONS TO THE PROVISIONS OF THIS ARTICLE,
PROVIDED, SPECIFICALLY, THAT THE TERM "MOTOR  FUEL"  SHALL  BE  READ  AS
"SYRUPS  OR  SIMPLE  SYRUPS,  BOTTLED  SOFT  DRINKS,  OR POWDERS OR BASE
PRODUCTS".
  S 356. PRESUMPTION OF TAXABILITY. 1. NO PERSON SHALL  PURCHASE  SYRUPS
OR  SIMPLE  SYRUPS,  BOTTLED SOFT DRINKS, OR POWDERS OR BASE PRODUCTS IN
THIS STATE, EXCLUDING A PURCHASE AT RETAIL, UNLESS THE TAXES IMPOSED  BY
THIS  ARTICLE  HAVE  BEEN  ASSUMED BY A DISTRIBUTOR IN ACCORDANCE WITH A
CERTIFICATION UNDER SUBDIVISION TWO OF THIS  SECTION  OR  PAID  BY  SUCH
DISTRIBUTOR. IN ADDITION TO ANY OTHER CIVIL AND CRIMINAL PENALTIES WHICH
MAY  APPLY,  ANY  PERSON  WHO PURCHASES SYRUPS OR SIMPLE SYRUPS, BOTTLED
SOFT DRINKS, OR POWDERS OR  BASE  PRODUCTS  WITHOUT  HAVING  RECEIVED  A
CERTIFICATION FROM THE SELLER IN ACCORDANCE WITH SUBDIVISION TWO OF THIS

S. 6610                            21                            A. 9710

SECTION  SHALL  BE JOINTLY AND SEVERALLY LIABLE TO PAY THE TAXES IMPOSED
BY THIS ARTICLE WITH RESPECT TO SUCH SYRUPS OR  SIMPLE  SYRUPS,  BOTTLED
SOFT DRINKS, OR POWDERS OR BASE PRODUCTS.
  2. (A) UPON EACH SALE OF SYRUPS OR SIMPLE SYRUPS, BOTTLED SOFT DRINKS,
OR  POWDERS  OR  BASE  PRODUCTS, OTHER THAN A SALE AT RETAIL, THE SELLER
MUST GIVE TO THE PURCHASER AND THE PURCHASER SHALL RECEIVE AT  THE  TIME
OF  DELIVERY  OF  SUCH  SALE  OF  SYRUPS  OR SIMPLE SYRUPS, BOTTLED SOFT
DRINKS, OR POWDERS OR BASE PRODUCTS,  A  CERTIFICATION  CONTAINING  SUCH
INFORMATION  AS  THE  COMMISSIONER  SHALL  REQUIRE WHICH SHALL INCLUDE A
STATEMENT TO THE EFFECT THAT THE SELLER ASSUMED THE PAYMENT OF  OR  PAID
THE TAXES IMPOSED BY THIS ARTICLE.
  (B)  IF  THE  CERTIFICATION  REQUIRED  BY  THIS  SUBDIVISION  HAS BEEN
FURNISHED TO THE PURCHASER AT DELIVERY AND ACCEPTED IN GOOD  FAITH,  THE
BURDEN OF PROVING THAT THE TAXES IMPOSED BY THIS ARTICLE WERE ASSUMED OR
PAID BY A DISTRIBUTOR SHALL BE SOLELY ON THE SELLER.
  (C)  WHERE  THE  CERTIFICATION  REQUIRED UNDER THIS SUBDIVISION IS NOT
FURNISHED BY THE SELLER AT DELIVERY OF  THE  SYRUPS  OR  SIMPLE  SYRUPS,
BOTTLED  SOFT  DRINKS, OR POWDERS OR BASE PRODUCTS, IT SHALL BE PRESUMED
THAT THE TAXES IMPOSED BY THIS ARTICLE HAVE NOT BEEN ASSUMED OR PAID  BY
A  DISTRIBUTOR  AND  THAT  THE  PURCHASER  IN  SUCH  CASE IS JOINTLY AND
SEVERALLY LIABLE FOR SUCH TAXES.
  (D) IF, DUE TO THE CIRCUMSTANCES OF DELIVERY, IT IS  NOT  POSSIBLE  TO
ISSUE  A  CERTIFICATION  REQUIRED  UNDER THIS SUBDIVISION AT THE TIME OF
DELIVERY OF SYRUPS OR SIMPLE SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS  OR
BASE  PRODUCTS,  THE  COMMISSIONER  MAY  AUTHORIZE  THE  DELIVERY OF THE
CERTIFICATION REQUIRED UNDER THIS SUBDIVISION AT A TIME AFTER THE DELIV-
ERY OF THE SYRUPS OR SIMPLE SYRUPS, BOTTLED SOFT DRINKS, OR  POWDERS  OR
BASE  PRODUCTS  WHICH  ARE  THE  SUBJECT  OF  THE SALE UNDER THE LIMITED
CIRCUMSTANCES HE OR SHE SHALL PRESCRIBE AND UPON SUCH TERMS  AND  CONDI-
TIONS  HE  OR SHE SHALL DEEM NECESSARY TO ENSURE COLLECTION OF THE TAXES
IMPOSED BY THIS ARTICLE.
  S 357. RECORDS TO BE KEPT BY DISTRIBUTORS AND OTHERS; EXAMINATION.  1.
EVERY  DISTRIBUTOR WHO IMPORTS OR CAUSES TO BE IMPORTED INTO THIS STATE,
OR WHO PRODUCES, REFINES,  BOTTLES,  MANUFACTURES,  COMPOUNDS  OR  MIXES
WITHIN  THIS  STATE,  SHALL  KEEP  A COMPLETE AND ACCURATE RECORD OF ALL
PURCHASES AND SALES, USES OR OTHER  DISPOSITIONS  OF  SYRUPS  OR  SIMPLE
SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS OR BASE PRODUCTS, AND A COMPLETE
AND ACCURATE RECORD OF THE NUMBER OF GALLONS OF SYRUPS OR SIMPLE SYRUPS,
BOTTLED  SOFT  DRINKS,  OR  POWDERS OR BASE PRODUCTS, PRODUCED, REFINED,
BOTTLED, MANUFACTURED, COMPOUNDED AND MIXED. SUCH RECORDS  SHALL  BE  IN
THE  FORM  AND  CONTAIN  WHATEVER OTHER INFORMATION THE COMMISSIONER MAY
PRESCRIBE. SUCH RECORDS, UNLESS  REQUIRED  BY  THE  COMMISSIONER  TO  BE
PRESERVED  FOR A LONGER PERIOD, SHALL BE PRESERVED FOR A PERIOD OF THREE
YEARS AND SHALL BE OFFERED FOR INSPECTION AT ANY TIME UPON ORAL OR WRIT-
TEN DEMAND BY THE COMMISSIONER OR  THE  COMMISSIONER'S  DULY  AUTHORIZED
AGENTS,  AND  EVERY  SUCH  DISTRIBUTOR  SHALL  MAKE  SUCH REPORTS TO THE
COMMISSIONER AS MAY BE REQUIRED  BY  THE  COMMISSIONER.  TO  VERIFY  THE
AMOUNT OF TAX DUE UNDER THIS ARTICLE, EACH PERSON IS HEREBY DIRECTED AND
REQUIRED  TO GIVE TO THE COMMISSIONER OR THE COMMISSIONER'S DULY AUTHOR-
IZED REPRESENTATIVES THE MEANS, FACILITIES,  AND  OPPORTUNITY  FOR  SUCH
EXAMINATIONS AS ARE HEREIN PROVIDED FOR AND REQUIRED.
  2.  EVERY  PERSON  WHO SHALL POSSESS OR TRANSPORT ANY SYRUPS OR SIMPLE
SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS OR BASE PRODUCTS UPON THE PUBLIC
HIGHWAYS, ROADS OR STREETS OF THE STATE, SHALL BE REQUIRED  TO  HAVE  IN
HIS  OR  HER  ACTUAL  POSSESSION  INVOICES  OR DELIVERY TICKETS FOR SUCH
SYRUPS OR SIMPLE  SYRUPS,  BOTTLED  SOFT  DRINKS,  OR  POWDERS  OR  BASE

S. 6610                            22                            A. 9710

PRODUCTS.  SUCH  INVOICES  OR  DELIVERY  TICKETS SHALL SHOW THE NAME AND
ADDRESS OF THE  CONSIGNOR  OR  SELLER,  THE  NAME  AND  ADDRESS  OF  THE
CONSIGNEE  OR PURCHASER, THE QUANTITY AND BRANDS OF THE SYRUPS OR SIMPLE
SYRUPS,  BOTTLED  SOFT  DRINKS, OR POWDERS OR BASE PRODUCTS TRANSPORTED,
AND THE NAME AND ADDRESS OF THE PERSON  WHO  HAS  OR  SHALL  ASSUME  THE
PAYMENT  OF  THE  TAX.  THE ABSENCE OF SUCH INVOICES OR DELIVERY TICKETS
SHALL BE PRIMA FACIE EVIDENCE THAT  SUCH  PERSON  IS  A  DISTRIBUTOR  OF
SYRUPS  OR  SIMPLE  SYRUPS,  BOTTLED  SOFT  DRINKS,  OR  POWDERS OR BASE
PRODUCTS. NOTHING CONTAINED  IN  THIS  SECTION  SHALL  BE  CONSTRUED  TO
REQUIRE  THE KEEPING OF A RECORD OF PURCHASE OR DISPOSITION OF SYRUPS OR
SIMPLE SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS OR  BASE  PRODUCTS  BY  A
CONSUMER  THEREOF,  EXCEPT  BY A PERSON WHO USES THE SAME FOR COMMERCIAL
PURPOSES, OR OF THE SALE  OF  SYRUPS  OR  SIMPLE  SYRUPS,  BOTTLED  SOFT
DRINKS, OR POWDERS OR BASE PRODUCTS AT RETAIL.
  3.  THE  COMMISSIONER  MAY,  BY  REGULATION, PROVIDE FOR THE FILING OF
MONTHLY INFORMATION RETURNS BY EVERY PERSON REQUIRED TO MAINTAIN RECORDS
AS PRESCRIBED IN SUBDIVISION ONE OF THIS SECTION. THESE RETURNS SHALL IN
ALL MATERIAL RESPECTS REFLECT THE INFORMATION REQUIRED TO  BE  CONTAINED
IN  THOSE  RECORDS.   THESE RETURNS SHALL BE IN THE FORM AND CONTAIN ALL
OTHER INFORMATION THE COMMISSIONER MAY REQUIRE.
  S 358. PAYMENT OF TAX; RETURNS. 1.  EVERY  DISTRIBUTOR  SHALL,  ON  OR
BEFORE  THE  TWENTIETH  DAY  OF EACH MONTH, FILE WITH THE COMMISSIONER A
RETURN, ON FORMS TO BE PRESCRIBED AND  FURNISHED  BY  THE  COMMISSIONER,
STATING  THE  NUMBER OF GALLONS OF SYRUPS OR SIMPLE SYRUPS, BOTTLED SOFT
DRINKS, OR POWDERS OR BASE PRODUCTS IMPORTED OR CAUSED TO  BE  IMPORTED,
PRODUCED,  REFINED,  BOTTLED,  MANUFACTURED,  COMPOUNDED OR MIXED BY THE
DISTRIBUTOR IN THE STATE DURING THE PRECEDING  CALENDAR  MONTH  AND  ANY
OTHER  INFORMATION  THAT  THE  COMMISSIONER  MAY  REQUIRE FOR THE PROPER
ENFORCEMENT OF THE PROVISIONS OF THIS ARTICLE.
  2. THE COMMISSIONER MAY ALSO, IF HE OR SHE DEEMS IT NECESSARY IN ORDER
TO INSURE THE PAYMENT OF THE TAXES  IMPOSED  BY  THIS  ARTICLE,  REQUIRE
RETURNS  TO BE MADE AT SUCH TIMES AND COVERING SUCH PERIODS AS HE OR SHE
MAY DEEM NECESSARY, AND, BY REGULATION, MAY PERMIT THE FILING OF RETURNS
BY DISTRIBUTORS ON A QUARTERLY, SEMI-ANNUAL, OR  ANNUAL  BASIS,  OR  MAY
WAIVE THE FILING OF RETURNS BY A DISTRIBUTOR FOR SUCH TIME AND UPON SUCH
TERMS  AS  HE OR SHE MAY DEEM PROPER IF SATISFIED THAT NO TAX IMPOSED BY
THIS ARTICLE IS OR SHALL BE PAYABLE BY THE DISTRIBUTOR DURING  THE  TIME
FOR  WHICH  RETURNS  ARE WAIVED. SUCH RETURNS SHALL CONTAIN SUCH FURTHER
INFORMATION AS THE COMMISSIONER SHALL REQUIRE.
  3. THE COMMISSIONER MAY REQUIRE EACH DISTRIBUTOR  UNDER  THIS  ARTICLE
TO:
  (A) ELECTRONICALLY PAY OVER TO THE COMMISSIONER ALL TAXES COLLECTED;
  (B) ELECTRONICALLY FILE A RETURN WITH THE COMMISSIONER; AND
  (C)  ELECTRONICALLY  FILE A RETURN INDICATING THAT NO TAX IS DUE IF NO
TAX IS DUE.
  4. THE FACT THAT A DISTRIBUTOR'S NAME IS  SIGNED  TO  A  FILED  RETURN
SHALL BE PRIMA FACIE EVIDENCE FOR ALL PURPOSES THAT THE RETURN WAS ACTU-
ALLY  SIGNED BY THAT DISTRIBUTOR. EACH SUCH DISTRIBUTOR SHALL PAY TO THE
COMMISSIONER WITH THE FILING OF THE RETURN, THE TAXES  IMPOSED  BY  THIS
ARTICLE DURING THE PERIOD COVERED BY THE RETURN.
  5.  A  DISTRIBUTOR WHO IS ENTITLED TO A REFUND UNDER THE PROVISIONS OF
SECTION THREE HUNDRED SIXTY-TWO OF THIS ARTICLE, IN LIEU OF SUCH REFUND,
MAY TAKE CREDIT THEREFOR ON A RETURN FILED  PURSUANT  TO  THIS  SECTION,
UNLESS THE COMMISSIONER WITHDRAWS THAT PRIVILEGE.
  S  359.  DETERMINATION OF TAX. 1. EXCEPT AS OTHERWISE PROVIDED IN THIS
SECTION, IF A DISTRIBUTOR FILES A RETURN UNDER THIS  ARTICLE,  BUT  THAT

S. 6610                            23                            A. 9710

RETURN  IS  INCORRECT  OR INSUFFICIENT, THE COMMISSIONER SHALL DETERMINE
THE AMOUNT OF TAX DUE AT ANY TIME WITHIN THREE YEARS  AFTER  THE  RETURN
WAS  FILED  (WHETHER  OR  NOT  SUCH RETURN WAS FILED ON OR AFTER THE DUE
DATE), AND GIVE WRITTEN NOTICE OF THAT DETERMINATION TO THE DISTRIBUTOR.
FOR THE PURPOSES OF THIS SECTION THE TERM DISTRIBUTOR SHALL ALSO INCLUDE
ANY OTHER PERSON LIABLE FOR THE TAXES IMPOSED BY THIS ARTICLE.
  2.  THE COMMISSIONER SHALL DETERMINE THE AMOUNT OF TAX DUE AT ANY TIME
IF A DISTRIBUTOR (A) HAS NOT REGISTERED AS REQUIRED BY THIS ARTICLE, (B)
FAILS TO FILE A RETURN, OR (C) WILLFULLY DELIVERS OR  DISCLOSES  TO  THE
COMMISSIONER  ANY  LIST,  RETURN,  REPORT,  ACCOUNT, STATEMENT, OR OTHER
DOCUMENT KNOWN BY THE DISTRIBUTOR TO BE FRAUDULENT OR TO BE FALSE AS  TO
ANY  MATERIAL  MATTER,  OR  OMITS  ANY  MATERIAL  MATTER  WITH INTENT TO
DECEIVE.
  3. NOTWITHSTANDING ANY OF THE FOREGOING PROVISIONS  OF  THIS  SECTION,
WHERE,  BEFORE THE EXPIRATION OF THE TIME PRESCRIBED IN THIS SECTION FOR
THE DETERMINATION OF TAX, BOTH THE COMMISSIONER AND THE DISTRIBUTOR HAVE
CONSENTED IN WRITING TO ITS DETERMINATION AFTER SUCH TIME, THE  TAX  MAY
BE  DETERMINED  AT ANY TIME PRIOR TO THE EXPIRATION OF THE PERIOD AGREED
UPON. THE PERIOD SO AGREED UPON MAY BE EXTENDED BY SUBSEQUENT AGREEMENTS
IN WRITING MADE BEFORE THE EXPIRATION OF THE  PERIOD  PREVIOUSLY  AGREED
UPON.
  4.  ANY  DETERMINATION  MADE PURSUANT TO THIS SECTION WILL FINALLY AND
IRREVOCABLY FIX THE TAX  UNLESS  THE  DISTRIBUTOR  AGAINST  WHOM  IT  IS
ASSESSED, WITHIN NINETY DAYS AFTER THE GIVING OF NOTICE OF SUCH DETERMI-
NATION,  PETITIONS  THE DIVISION OF TAX APPEALS FOR A HEARING, OR UNLESS
THE COMMISSIONER, ON HIS OR HER  OWN  MOTION,  RE-DETERMINES  THE  SAME.
AFTER SUCH HEARING, THE DIVISION OF TAX APPEALS SHALL GIVE NOTICE OF THE
DETERMINATION  OF THE ADMINISTRATIVE LAW JUDGE TO THE DISTRIBUTOR LIABLE
FOR THE TAX AND TO THE COMMISSIONER. THAT DETERMINATION MAY BE  REVIEWED
BY  THE  TAX APPEALS TRIBUNAL AS PROVIDED IN ARTICLE FORTY OF THIS CHAP-
TER. THE DECISION OF  THE  TAX  APPEALS  TRIBUNAL  MAY  BE  REVIEWED  AS
PROVIDED  IN  SECTION  TWO  THOUSAND  SIXTEEN  OF  THIS CHAPTER, BUT THE
PROCEEDING MAY NOT BE COMMENCED UNLESS  THE  AMOUNT  OF  TAX  STATED  OR
REFERRED  TO  IN  THE  DECISION, WITH PENALTIES AND INTEREST THEREON, IF
ANY, AND THE AMOUNT OF ANY OTHER PENALTY STATED OR REFERRED  TO  IN  THE
DECISION, IS FIRST DEPOSITED WITH THE COMMISSIONER.
  5. THE REMEDY PROVIDED BY THIS SECTION FOR REVIEW OF A DECISION OF THE
TAX  APPEALS  TRIBUNAL IS THE EXCLUSIVE REMEDY AVAILABLE TO ANY TAXPAYER
FOR JUDICIAL DETERMINATION OF THE LIABILITY OF THE  TAXPAYER  FOR  TAXES
UNDER THIS ARTICLE.
  S 360. PROCEEDINGS TO RECOVER TAX. WHENEVER ANY DISTRIBUTOR SHALL FAIL
TO  PAY,  WITHIN  THE  TIME  LIMITED  HEREIN, ANY TAX WHICH HE OR SHE IS
REQUIRED TO PAY UNDER THE  PROVISIONS  OF  THIS  ARTICLE,  THE  ATTORNEY
GENERAL  SHALL,  UPON  THE REQUEST OF THE DEPARTMENT, ENFORCE PAYMENT OF
SUCH TAX BY CIVIL ACTION IN THE SUPREME COURT, IN THE NAME OF THE PEOPLE
OF THE STATE, AGAINST SUCH DISTRIBUTOR FOR THE AMOUNT OF SUCH TAX,  WITH
INTEREST.  THE  PROCEEDS  OF  THE JUDGMENT, IF ANY, SHALL BE PAID TO THE
DEPARTMENT.
  WHENEVER ANY DISTRIBUTOR SHALL FAIL TO PAY, WITHIN  THE  TIME  LIMITED
HEREIN,  ANY TAX WHICH HE OR SHE IS REQUIRED TO PAY UNDER THE PROVISIONS
OF THIS ARTICLE, THE COMMISSIONER MAY ISSUE A WARRANT UNDER HIS  OR  HER
OFFICIAL  SEAL,  DIRECTED  TO  THE  SHERIFF  OF ANY COUNTY OF THE STATE,
COMMANDING HIM OR HER TO LEVY UPON AND SELL THE REAL AND PERSONAL  PROP-
ERTY  OF  SUCH  DISTRIBUTOR,  FOUND  WITHIN  HIS  OR HER COUNTY, FOR THE
PAYMENT OF THE AMOUNT THEREOF, WITH THE ADDED  PENALTIES,  INTEREST  AND
THE  COST  OF  EXECUTING  THE WARRANT, AND TO RETURN SUCH WARRANT TO THE

S. 6610                            24                            A. 9710

DEPARTMENT AND TO PAY TO IT THE MONEY COLLECTED BY VIRTUE THEREOF WITHIN
SIXTY DAYS AFTER THE RECEIPT OF SUCH WARRANT. THE SHERIFF SHALL,  WITHIN
FIVE  DAYS  AFTER THE RECEIPT OF THE WARRANT, FILE WITH THE CLERK OF HIS
OR HER COUNTY A COPY THEREOF, AND THEREUPON THE CLERK SHALL ENTER IN THE
JUDGMENT  DOCKET  THE  NAME OF THE DISTRIBUTOR MENTIONED IN THE WARRANT,
AND THE AMOUNT OF THE TAX, PENALTIES AND INTEREST FOR WHICH THE  WARRANT
IS ISSUED AND THE DATE WHEN SUCH COPY IS FILED, AND THEREUPON THE AMOUNT
OF  SUCH  WARRANT SO DOCKETED SHALL BECOME A LIEN UPON THE TITLE TO, AND
INTEREST IN, REAL AND PERSONAL PROPERTY OF THE DISTRIBUTOR AGAINST  WHOM
THE  WARRANT  IS  ISSUED. SUCH LIEN SHALL NOT APPLY TO PERSONAL PROPERTY
UNLESS SUCH WARRANT IS ALSO FILED IN THE DEPARTMENT OF STATE.  THE  SAID
SHERIFF  SHALL  THEREUPON PROCEED UPON THE WARRANT IN ALL RESPECTS, WITH
LIKE EFFECT, AND IN THE SAME MANNER PRESCRIBED  BY  LAW  IN  RESPECT  TO
EXECUTIONS  ISSUED AGAINST PROPERTY UPON JUDGMENTS OF A COURT OF RECORD,
AND SHALL BE ENTITLED TO THE SAME  FEES  FOR  HIS  OR  HER  SERVICES  IN
EXECUTING  THE  WARRANT,  TO  BE  COLLECTED  IN  THE SAME MANNER. IN THE
DISCRETION OF THE COMMISSIONER A WARRANT OF LIKE TERMS, FORCE AND EFFECT
MAY BE ISSUED AND DIRECTED TO ANY OFFICER OR EMPLOYEE OF THE DEPARTMENT,
AND IN THE EXECUTION THEREOF SUCH OFFICER OR EMPLOYEE SHALL HAVE ALL THE
POWERS CONFERRED BY LAW UPON SHERIFFS, BUT SHALL BE ENTITLED TO  NO  FEE
OR  COMPENSATION IN EXCESS OF ACTUAL EXPENSES PAID IN THE PERFORMANCE OF
SUCH DUTY. UPON SUCH FILING OF A COPY OF  A  WARRANT,  THE  COMMISSIONER
SHALL  HAVE  THE SAME REMEDIES TO ENFORCE THE CLAIM FOR TAXES, PENALTIES
AND INTEREST AGAINST THE DISTRIBUTOR AS IF THE PEOPLE OF THE  STATE  HAD
RECOVERED JUDGMENT AGAINST SUCH DISTRIBUTOR FOR THE AMOUNT OF THE TAX.
  S 361. PENALTIES AND INTEREST. 1. (A)(I) A DISTRIBUTOR OR OTHER PERSON
WHO  OR  WHICH  FAILS TO FILE A RETURN OR TO PAY ANY TAX WITHIN THE TIME
REQUIRED BY THIS ARTICLE (DETERMINED WITH REGARD  TO  ANY  EXTENSION  OF
TIME  FOR  FILING  OR  PAYING)  SHALL BE SUBJECT TO A PENALTY OF TEN PER
CENTUM OF THE AMOUNT OF TAX DETERMINED TO BE DUE  AS  PROVIDED  IN  THIS
ARTICLE  PLUS  ONE  PER CENTUM OF SUCH AMOUNT FOR EACH MONTH OR FRACTION
THEREOF DURING WHICH THE FAILURE CONTINUES AFTER THE EXPIRATION  OF  THE
FIRST  MONTH  DURING  WHICH THAT RETURN WAS REQUIRED TO BE FILED OR SUCH
TAX BECAME DUE, NOT EXCEEDING THIRTY PER CENTUM IN THE AGGREGATE.
  (II) IN THE CASE OF A FAILURE TO FILE A RETURN WITHIN  SIXTY  DAYS  OF
THE DATE PRESCRIBED FOR FILING A RETURN BY THIS ARTICLE (DETERMINED WITH
REGARD TO ANY EXTENSION OF TIME FOR FILING), THE PENALTY IMPOSED BY THIS
PARAGRAPH  SHALL  NOT  BE LESS THAN THE LESSER OF ONE HUNDRED DOLLARS OR
ONE HUNDRED PER CENTUM OF THE AMOUNT REQUIRED TO BE SHOWN AS TAX ON THAT
RETURN. FOR THE PURPOSE OF THE PRECEDING SENTENCE,  THE  AMOUNT  OF  TAX
REQUIRED TO BE SHOWN ON THE RETURN SHALL BE REDUCED BY THE AMOUNT OF ANY
PART  OF  THE  TAX  THAT  IS  PAID  ON OR BEFORE THE DATE PRESCRIBED FOR
PAYMENT OF THE TAX.
  (B) 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
UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SUBDIVISION  TWEN-
TY-SIXTH  OF  SECTION  ONE  HUNDRED SEVENTY-ONE OF THIS CHAPTER SHALL BE
PAID FOR THE PERIOD FROM THAT LAST DATE TO THE DATE PAID, WHETHER OR NOT
ANY EXTENSION OF TIME FOR PAYMENT WAS  GRANTED.    INTEREST  UNDER  THIS
PARAGRAPH  SHALL  NOT  BE  OWED  IF  THE AMOUNT THEREOF IS LESS THAN ONE
DOLLAR.
  (C) IF THE COMMISSIONER  DETERMINES  THAT  SUCH  FAILURE  WAS  DUE  TO
REASONABLE  CAUSE  (AS DETERMINED UNDER REGULATIONS OF THE COMMISSIONER)
AND NOT DUE TO WILLFUL NEGLECT, HE OR SHE SHALL ABATE  ALL  OR  PART  OF
SUCH PENALTY.

S. 6610                            25                            A. 9710

  (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 TWO TIMES THE AMOUNT OF
TAX  DUE, PLUS (II) INTEREST ON SUCH UNPAID TAX AT THE UNDERPAYMENT RATE
SET BY THE COMMISSIONER 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  (DETER-
MINED  WITHOUT REGARD TO ANY EXTENSION OF TIME FOR PAYING) AND ENDING ON
THE DAY ON WHICH SUCH TAX IS PAID.
  (E) THE PENALTIES AND INTEREST PROVIDED FOR IN THIS SECTION  SHALL  BE
DETERMINED, ASSESSED, COLLECTED AND PAID IN THE SAME MANNER AS THE TAXES
IMPOSED BY THIS ARTICLE AND SHALL BE DISPOSED OF AS HEREINAFTER PROVIDED
WITH RESPECT TO MONIES DERIVED FROM THE TAX. UNPAID PENALTIES AND INTER-
EST  UNDER  THIS SUBDIVISION MAY BE RECOVERED BY THE ATTORNEY GENERAL IN
AN ACTION BROUGHT PURSUANT TO SECTION THREE HUNDRED SIXTY OF THIS  ARTI-
CLE. INTEREST UNDER THIS SUBDIVISION SHALL BE COMPOUNDED DAILY.
  2. FOR PURPOSES OF THIS CHAPTER, THE FAILURE TO DO ANY ACT REQUIRED BY
THIS  ARTICLE  SHALL BE DEEMED AN ACT COMMITTED IN PART AT THE OFFICE OF
THE COMMISSIONER IN ALBANY. FOR PURPOSES OF THIS  CHAPTER,  THE  CERTIF-
ICATE  OF  THE  COMMISSIONER TO THE EFFECT THAT A TAX HAS NOT BEEN PAID,
THAT A RETURN HAS NOT BEEN FILED,  OR  THAT  INFORMATION  HAS  NOT  BEEN
SUPPLIED,  AS  REQUIRED  BY  OR UNDER THE PROVISIONS OF THIS ARTICLE, OR
THAT A CLAIM FOR REFUND HAS BEEN FILED, SHALL BE  PRIMA  FACIE  EVIDENCE
THAT  THE  TAX  HAS  NOT  BEEN  PAID, THE RETURN HAS NOT BEEN FILED, THE
INFORMATION HAS NOT BEEN SUPPLIED, OR THE CLAIM HAS NOT BEEN FILED.
  3. FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN OF THIS CHAPTER.
  S 362. REFUNDS. 1. IN THE MANNER PROVIDED IN THIS SECTION, THE COMMIS-
SIONER SHALL REFUND OR CREDIT ANY TAX, PENALTY, OR INTEREST ERRONEOUSLY,
ILLEGALLY OR UNCONSTITUTIONALLY COLLECTED OR PAID IF AN  APPLICATION  IS
FILED  WITH  THE COMMISSIONER WITHIN THREE YEARS AFTER THE DATE WHEN THE
TAX, PENALTY, OR INTEREST WAS PAID UNDER THIS ARTICLE.  THE  APPLICATION
SHALL BE IN A FORM PRESCRIBED BY THE COMMISSIONER.
  2.  WITH  RESPECT  TO SYRUPS OR SIMPLE SYRUPS, BOTTLED SOFT DRINKS, OR
POWDERS OR BASE PRODUCTS IMPORTED, MANUFACTURED OR SOLD OR PURCHASED  IN
THIS STATE, A DISTRIBUTOR SHALL BE ALLOWED A REFUND OR CREDIT OF THE TAX
REQUIRED  TO BE PAID PURSUANT TO THIS ARTICLE UPON SUCH SYRUPS OR SIMPLE
SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS OR BASE PRODUCTS IN  THE  AMOUNT
OF  SUCH  TAX PAID IF SUCH SYRUPS OR SIMPLE SYRUPS, BOTTLED SOFT DRINKS,
OR POWDERS OR BASE PRODUCTS WERE EXPORTED FROM THIS STATE  FOR  SALE  OR
USE  OUTSIDE  THIS  STATE.  THE DISTRIBUTOR MUST FILE AN APPLICATION FOR
SUCH REFUND OR CREDIT AND COMPLY WITH ALL  REQUIREMENTS  AND  RULES  AND
REGULATIONS  OF  THE  COMMISSIONER,  INCLUDING  ANY  AND ALL EVIDENTIARY
REQUIREMENTS. UPON RECEIPT OF A CLAIM FOR REFUND  IN  PROCESSIBLE  FORM,
INTEREST  SHALL  BE  ALLOWED AND PAID AT THE OVERPAYMENT RATE SET BY THE
COMMISSIONER PURSUANT TO SUBDIVISION TWENTY-SIXTH OF SECTION ONE HUNDRED
SEVENTY-ONE OF THIS CHAPTER FROM THE DUE DATE OF THE RETURN TO THE  DATE
IMMEDIATELY PRECEDING THE DATE OF THE REFUND CHECK EXCEPT NO SUCH INTER-
EST SHALL BE ALLOWED OR PAID IF THE REFUND CHECK IS MAILED WITHIN THIRTY
DAYS  OF SUCH RECEIPT AND EXCEPT NO INTEREST SHALL BE ALLOWED OR PAID IF
THE AMOUNT THEREOF WOULD BE LESS THAN ONE DOLLAR.  FOR PURPOSES OF  THIS
SUBDIVISION,  A CLAIM SHALL NOT BE TREATED AS FILED UNTIL IT IS FILED IN
PROCESSIBLE FORM. A CLAIM IS IN A PROCESSIBLE FORM IF THE CLAIM IS FILED
ON A PERMITTED FORM, AND CONTAINS THE TAXPAYER'S NAME, ADDRESS AND IDEN-
TIFYING NUMBER AND THE  REQUIRED  SIGNATURES,  AND  SUFFICIENT  REQUIRED

S. 6610                            26                            A. 9710

INFORMATION  (WHETHER ON THE CLAIM OR ON REQUIRED ATTACHMENTS) TO PERMIT
THE MATHEMATICAL VERIFICATION OF REFUND SHOWN ON THE CLAIM.
  3.  IF  AN  APPLICATION FOR REFUND OR CREDIT IS FILED WITH THE COMMIS-
SIONER AS PROVIDED IN SUBDIVISION ONE OF THIS SECTION, THE  COMMISSIONER
SHALL  GRANT  OR  DENY  THAT  APPLICATION IN WHOLE OR IN PART WITHIN SIX
MONTHS OF RECEIPT OF THE APPLICATION IN A FORM THAT IS ABLE TO BE  PROC-
ESSED  AND SHALL NOTIFY THE APPLICANT BY MAIL ACCORDINGLY. THAT DETERMI-
NATION SHALL BE FINAL AND IRREVOCABLE UNLESS THE APPLICANT, WITHIN NINE-
TY DAYS AFTER THE MAILING OF NOTICE OF SUCH DETERMINATION, PETITIONS THE
DIVISION OF TAX APPEALS FOR A HEARING.  AFTER THE HEARING, THE  DIVISION
OF TAX APPEALS SHALL MAIL NOTICE OF THE DETERMINATION OF THE ADMINISTRA-
TIVE  LAW JUDGE TO THE APPLICANT AND TO THE COMMISSIONER.  THAT DETERMI-
NATION MAY BE REVIEWED BY THE TAX APPEALS TRIBUNAL AS PROVIDED IN  ARTI-
CLE  FORTY OF THIS CHAPTER. THE DECISION OF THE TAX APPEALS TRIBUNAL MAY
BE REVIEWED AS PROVIDED IN SECTION TWO THOUSAND SIXTEEN OF THIS CHAPTER.
  4. A SUBSEQUENT PURCHASER SHALL BE ELIGIBLE FOR REIMBURSEMENT  OF  TAX
IMPOSED  UNDER THIS SECTION WITH RESPECT TO ANY SYRUPS OR SIMPLE SYRUPS,
BOTTLED SOFT DRINKS, OR POWDERS  OR  BASE  PRODUCTS  PURCHASED  BY  SUCH
SUBSEQUENT  PURCHASER  TO WHICH AN EXEMPTION UNDER SUBDIVISIONS ONE, TWO
OR THREE OF SECTION THREE HUNDRED FIFTY-TWO OF THIS ARTICLE  WOULD  HAVE
APPLIED.  THIS  REIMBURSEMENT  MAY  BE  CLAIMED  ONLY  WHERE (A) THE TAX
IMPOSED PURSUANT TO THIS ARTICLE HAS BEEN PAID WITH RESPECT TO SYRUPS OR
SIMPLE SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS OR BASE PRODUCTS, AND THE
ENTIRE AMOUNT OF SUCH TAX HAS BEEN ABSORBED BY SUCH PURCHASER,  AND  (B)
SUCH  PURCHASER  POSSESSES DOCUMENTARY PROOF SATISFACTORY TO THE COMMIS-
SIONER EVIDENCING THE ABSORPTION BY IT OF THE ENTIRE AMOUNT OF  THE  TAX
IMPOSED  PURSUANT  TO  THIS ARTICLE. PROVIDED, HOWEVER, THAT THE COMMIS-
SIONER  SHALL  REQUIRE  SUCH  DOCUMENTARY  PROOF  TO  QUALIFY  FOR   ANY
REIMBURSEMENT  OF TAX PROVIDED BY THIS SECTION AS THE COMMISSIONER DEEMS
APPROPRIATE.
  S 363. MAILING RULES; HOLIDAYS. 1. IF ANY  RETURN,  CLAIM,  STATEMENT,
NOTICE,  APPLICATION,  OR  OTHER  DOCUMENT  REQUIRED TO BE FILED, OR ANY
PAYMENT REQUIRED TO BE MADE, WITHIN A PRESCRIBED PERIOD OR ON OR  BEFORE
A  PRESCRIBED  DATE UNDER AUTHORITY OF ANY PROVISION OF THIS ARTICLE IS,
AFTER SUCH PERIOD OR SUCH DATE, DELIVERED BY UNITED STATES MAIL  TO  THE
COMMISSIONER,  DEPARTMENT,  BUREAU, OFFICE, OFFICER OR PERSON WITH WHICH
OR WITH WHOM SUCH DOCUMENT IS REQUIRED TO BE FILED, OR TO  WHICH  OR  TO
WHOM  SUCH PAYMENT IS REQUIRED TO BE MADE, THE DATE OF THE UNITED STATES
POSTMARK STAMPED ON THE ENVELOPE SHALL BE  DEEMED  TO  BE  THE  DATE  OF
DELIVERY.  THIS  SUBDIVISION SHALL APPLY ONLY IF THE POSTMARK DATE FALLS
WITHIN THE PRESCRIBED PERIOD OR ON OR BEFORE THE PRESCRIBED DATE FOR THE
FILING OF SUCH DOCUMENT, OR FOR MAKING THE PAYMENT, INCLUDING ANY EXTEN-
SION GRANTED FOR SUCH FILING OR PAYMENT, AND ONLY IF  SUCH  DOCUMENT  OR
PAYMENT  WAS  DEPOSITED IN THE MAIL, POSTAGE PREPAID, PROPERLY ADDRESSED
TO THE COMMISSIONER, DEPARTMENT, BUREAU, OFFICE, OFFICER OR PERSON  WITH
WHICH  OR  WITH WHOM THE DOCUMENT IS REQUIRED TO BE FILED OR TO WHICH OR
TO WHOM SUCH PAYMENT IS REQUIRED TO BE MADE.  IF ANY DOCUMENT IS SENT BY
UNITED STATES REGISTERED MAIL, SUCH REGISTRATION SHALL  BE  PRIMA  FACIE
EVIDENCE  THAT  SUCH DOCUMENT WAS DELIVERED TO THE COMMISSIONER, DEPART-
MENT, BUREAU, OFFICE, OFFICER OR PERSON TO WHICH OR TO  WHOM  ADDRESSED.
TO  THE  EXTENT  THAT  THE  COMMISSIONER  SHALL PRESCRIBE BY REGULATION,
CERTIFIED MAIL MAY BE  USED  IN  LIEU  OF  REGISTERED  MAIL  UNDER  THIS
SECTION.  THIS SUBDIVISION SHALL APPLY IN THE CASE OF POSTMARKS NOT MADE
BY THE UNITED STATES POST OFFICE ONLY IF AND TO THE EXTENT  PROVIDED  BY
REGULATIONS OF THE COMMISSIONER.

S. 6610                            27                            A. 9710

  2.  ANY  NOTICE AUTHORIZED OR REQUIRED UNDER THIS ARTICLE MAY BE GIVEN
BY MAILING IT TO THE PERSON FOR WHOM  IT  IS  INTENDED,  IN  A  POSTPAID
ENVELOPE  ADDRESSED TO SUCH PERSON AT THE ADDRESS GIVEN BY HIM OR HER IN
HIS OR HER APPLICATION FOR REGISTRATION AS A DISTRIBUTOR OR IN THE  LAST
RETURN  FILED  BY HIM OR HER UNDER THIS ARTICLE OR, IF NO APPLICATION OR
RETURN HAS BEEN FILED, THEN TO SUCH ADDRESS AS MAY  BE  OBTAINABLE.  THE
MAILING  OF  SUCH NOTICE SHALL BE PRESUMPTIVE EVIDENCE OF ITS RECEIPT BY
THE PERSON TO WHOM ADDRESSED.  ANY PERIOD OF TIME, WHICH  IS  DETERMINED
ACCORDING  TO  THE  PROVISIONS OF THIS ARTICLE, FOR THE GIVING OF NOTICE
SHALL COMMENCE TO RUN FROM THE DATE OF MAILING OF SUCH NOTICE.
  3. WHEN THE LAST  DAY  PRESCRIBED  UNDER  AUTHORITY  OF  THIS  ARTICLE
(INCLUDING ANY EXTENSION OF TIME) FOR PERFORMING ANY ACT FALLS ON SATUR-
DAY, SUNDAY OR A LEGAL HOLIDAY IN THE STATE OF NEW YORK, THE PERFORMANCE
OF  SUCH  ACT  SHALL BE CONSIDERED TIMELY IF IT IS PERFORMED ON THE NEXT
SUCCEEDING DAY WHICH IS NOT A SATURDAY, SUNDAY OR A LEGAL HOLIDAY.
  4. (A) ANY REFERENCE IN SUBDIVISION ONE OF THIS SECTION TO THE  UNITED
STATES  MAIL  SHALL  BE TREATED AS INCLUDING A REFERENCE TO ANY DELIVERY
SERVICE DESIGNATED BY THE SECRETARY OF THE TREASURY OF THE UNITED STATES
PURSUANT TO SECTION SEVENTY-FIVE HUNDRED TWO  OF  THE  INTERNAL  REVENUE
CODE  AND ANY REFERENCE IN SUBDIVISION ONE OF THIS SECTION TO A POSTMARK
BY THE UNITED STATES MAIL SHALL BE TREATED AS INCLUDING A  REFERENCE  TO
ANY  DATE RECORDED OR MARKED IN THE MANNER DESCRIBED IN SECTION SEVENTY-
FIVE HUNDRED TWO OF THE INTERNAL REVENUE CODE BY A  DESIGNATED  DELIVERY
SERVICE.  IF THE COMMISSIONER FINDS THAT ANY DELIVERY SERVICE DESIGNATED
BY SUCH SECRETARY IS INADEQUATE FOR THE NEEDS OF THE STATE, THE  COMMIS-
SIONER  MAY  WITHDRAW SUCH DESIGNATION FOR PURPOSES OF THIS ARTICLE. THE
COMMISSIONER MAY ALSO DESIGNATE ADDITIONAL DELIVERY SERVICES MEETING THE
CRITERIA OF SECTION SEVENTY-FIVE HUNDRED TWO  OF  THE  INTERNAL  REVENUE
CODE  FOR PURPOSES OF THIS ARTICLE, OR MAY WITHDRAW ANY SUCH DESIGNATION
IF THE COMMISSIONER FINDS THAT A DELIVERY SERVICE SO DESIGNATED IS INAD-
EQUATE FOR THE NEEDS OF THE STATE. ANY REFERENCE IN SUBDIVISION  ONE  OF
THIS  SECTION  TO THE UNITED STATES MAIL SHALL BE TREATED AS INCLUDING A
REFERENCE TO ANY DELIVERY SERVICE DESIGNATED BY THE COMMISSIONER AND ANY
REFERENCE IN SUBDIVISION ONE OF THIS SECTION TO A POSTMARK BY THE UNITED
STATES MAIL SHALL BE TREATED  AS  INCLUDING  A  REFERENCE  TO  ANY  DATE
RECORDED  OR  MARKED  IN  THE  MANNER  DESCRIBED IN SECTION SEVENTY-FIVE
HUNDRED TWO OF THE INTERNAL REVENUE CODE BY A  DELIVERY  SERVICE  DESIG-
NATED BY THE COMMISSIONER.
  (B)  ANY  EQUIVALENT OF REGISTERED OR CERTIFIED MAIL DESIGNATED BY THE
UNITED STATES SECRETARY OF THE TREASURY, OR AS MAY BE DESIGNATED BY  THE
COMMISSIONER  PURSUANT  TO  THE SAME CRITERIA USED BY SUCH SECRETARY FOR
SUCH DESIGNATIONS PURSUANT TO SECTION SEVENTY-FIVE HUNDRED  TWO  OF  THE
INTERNAL  REVENUE  CODE,  SHALL BE INCLUDED WITHIN THE MEANING OF REGIS-
TERED OR CERTIFIED MAIL AS USED IN SUBDIVISION ONE OF THIS  SECTION.  IF
THE  COMMISSIONER  FINDS  THAT ANY EQUIVALENT OF REGISTERED OR CERTIFIED
MAIL IS INADEQUATE FOR THE NEEDS OF  THE  STATE,  THE  COMMISSIONER  MAY
WITHDRAW SUCH DESIGNATION FOR PURPOSES OF THIS ARTICLE.
  S  364.  DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES, FEES, INTEREST
AND PENALTIES COLLECTED OR RECEIVED BY THE COMMISSIONER UNDER THE  TAXES
IMPOSED  BY  THIS ARTICLE SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO
THE PROVISIONS OF SECTION ONE HUNDRED  SEVENTY-ONE-A  OF  THIS  CHAPTER.
FROM  THE  TAXES AND INTEREST AND PENALTIES COLLECTED OR RECEIVED BY THE
COMMISSIONER UNDER SECTION  THREE  HUNDRED  FIFTY-ONE  OF  THIS  ARTICLE
EFFECTIVE  ON  AND  AFTER  SEPTEMBER FIRST, TWO THOUSAND TEN, ALL MONIES
COLLECTED OR RECEIVED UNDER SUCH SECTIONS SHALL BE DEPOSITED TO THE HCRA

S. 6610                            28                            A. 9710

RESOURCES FUND AS ESTABLISHED PURSUANT TO SECTION NINETY-TWO-DD  OF  THE
STATE FINANCE LAW.
  S  4. The tax law is amended by adding a new section 1812-g to read as
follows:
  S 1812-G. ARTICLE SIXTEEN TAX. 1. ANY PERSON WHO WILLFULLY ATTEMPTS IN
ANY MANNER TO EVADE OR DEFEAT ANY TAX IMPOSED BY ARTICLE SIXTEEN 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.
  2. ANY WILLFUL ACT OR OMISSION, OTHER THAN THOSE DESCRIBED IN  SECTION
EIGHTEEN HUNDRED ONE OF THIS ARTICLE OR SUBDIVISION ONE OF THIS SECTION,
BY  ANY  PERSON  THAT AMOUNTS TO A VIOLATION OF ANY PROVISION OF ARTICLE
SIXTEEN OF THIS CHAPTER, CONSTITUTES A MISDEMEANOR.
  S 5. This act shall take effect September 1, 2010.

                                 PART D

  Section 1. Subdivision (a) of section 28 of the tax law, as  added  by
section  1  of  part  X of chapter 62 of the laws of 2006, is amended to
read as follows:
  (a) General. A taxpayer subject to tax under article nine,  nine-A  or
twenty-two  of  this  chapter shall be allowed a credit against such tax
pursuant to  the  provisions  referenced  in  subdivision  (d)  of  this
section. The credit (or pro rata share of earned credit in the case of a
partnership)  for  each gallon of biofuel produced at a biofuel plant on
or after January first, two thousand six shall equal fifteen  cents  per
gallon after the production of the first forty thousand gallons per year
presented  to  market.  The credit under this section shall be capped at
two and one-half million dollars per taxpayer per taxable year for up to
no more than four consecutive taxable years per biofuel plant.   IF  THE
TAXPAYER  IS  A  PARTNER IN A PARTNERSHIP OR SHAREHOLDER OF A NEW YORK S
CORPORATION, THEN THE CAP IMPOSED BY THE  PRECEDING  SENTENCE  SHALL  BE
APPLIED AT THE ENTITY LEVEL, SO THAT THE AGGREGATE CREDIT ALLOWED TO ALL
THE  PARTNERS  OR  SHAREHOLDERS  OF EACH SUCH ENTITY IN THE TAXABLE YEAR
DOES NOT EXCEED TWO AND ONE-HALF MILLION DOLLARS.
  S 2. Paragraph (f) of subdivision 12-G of section 210 of the tax  law,
as  amended  by section 1-a of part A of chapter 63 of the laws of 2005,
is amended to read as follows:
  (f) An eligible taxpayer may claim credits under this subdivision  for
four  consecutive  taxable years, except, if a taxpayer is located in an
academic incubator facility and relocates within New  York  state  to  a
nonacademic  incubator  site, then the taxpayer (i) may make a revocable
election to defer the credit provided  under  this  subdivision  to  the
first  taxable  year  beginning  after  the  taxpayer  relocates from an
academic incubator facility, and (ii) shall be eligible for such  credit
for  five consecutive taxable years. In no case shall the credit allowed
by this subdivision to a taxpayer exceed two hundred and fifty  thousand
dollars  per  year.    IF  THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR
SHAREHOLDER OF A NEW YORK S CORPORATION, THEN THE LIMIT IMPOSED  BY  THE
PRECEDING  SENTENCE  SHALL  BE  APPLIED AT THE ENTITY LEVEL, SO THAT THE
AGGREGATE CREDIT ALLOWED TO ALL THE PARTNERS  OR  SHAREHOLDERS  OF  EACH
SUCH  ENTITY  IN  THE TAXABLE YEAR DOES NOT EXCEED TWO HUNDRED AND FIFTY
THOUSAND DOLLARS.

S. 6610                            29                            A. 9710

  S 3. Paragraph 6 of subsection (nn) of section 606 of the tax law,  as
amended  by  section 1-a of part A of chapter 63 of the laws of 2005, is
amended to read as follows:
  (6)  An  eligible taxpayer may claim credits under this subsection for
four consecutive taxable years, except, if a taxpayer is located  in  an
academic  incubator  facility  and  relocates within New York state to a
nonacademic incubator site, then the taxpayer (i) may make  a  revocable
election to defer the credit provided under this subsection to the first
taxable  year  beginning  after  the taxpayer relocates from an academic
incubator facility, and (ii) shall be eligible for such credit for  five
consecutive  years.  In  no  case  shall  the  credit  allowed  by  this
subsection to a taxpayer exceed two hundred fifty thousand  dollars  per
year.  IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR SHAREHOLDER OF A
NEW YORK S CORPORATION, THEN THE LIMIT IMPOSED BY THE PRECEDING SENTENCE
SHALL  BE  APPLIED  AT  THE  ENTITY  LEVEL, SO THAT THE AGGREGATE CREDIT
ALLOWED TO ALL THE PARTNERS OR SHAREHOLDERS OF EACH SUCH ENTITY  IN  THE
TAXABLE YEAR DOES NOT EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS.
  S 4. This act shall take effect immediately and apply to taxable years
beginning on or after January 1, 2010.

                                 PART E

  Section  1.  Subparagraph  (E)  of  paragraph  1  of subsection (b) of
section 631 of the tax law, as added by section 1 of part H  of  chapter
60  of  the laws of 2004, is amended and a new subparagraph (F) is added
to read as follows:
  (E) gains from the sale, conveyance or other disposition of shares  of
stock  in a cooperative housing corporation in connection with the grant
or transfer of a proprietary leasehold by the owner thereof and  subject
to  the  provisions  of article thirty-one of this chapter, whether such
shares are held by a partnership, trust or otherwise[.]; OR
  (F) INCOME RECEIVED BY NONRESIDENTS  RELATED  TO  A  BUSINESS,  TRADE,
PROFESSION OR OCCUPATION PREVIOUSLY CARRIED ON IN THIS STATE, WHETHER OR
NOT  AS  AN  EMPLOYEE,  INCLUDING  BUT  NOT LIMITED TO, COVENANTS NOT TO
COMPETE AND TERMINATION  AGREEMENTS.  INCOME  RECEIVED  BY  NONRESIDENTS
RELATED  TO  A  BUSINESS,  TRADE,  PROFESSION  OR  OCCUPATION PREVIOUSLY
CARRIED ON PARTLY WITHIN AND PARTLY WITHOUT THE STATE SHALL BE ALLOCATED
IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTION (C) OF THIS SECTION.
  S 2. This act shall take effect immediately and apply to taxable years
on or after January 1, 2010.

                                 PART F

  Section 1. Legislative findings. The  legislature  finds  that  it  is
necessary to correct a decision of the tax appeals tribunal and a deter-
mination  of the division of tax appeals that erroneously overturned the
longstanding policies of department of taxation and finance that nonres-
ident subchapter S shareholders who sell their interest in an  S  corpo-
ration  pursuant  to  an  election  under  section 338(h)(10) or section
453(h)(1)(A) of the Internal Revenue Code, respectively,  are  taxed  in
accordance with that election and the transaction is treated as an asset
sale  producing  New  York  source  income.  Section  two of this act is
intended to clarify the concept of federal conformity  in  the  personal
income  tax  and is necessary to prevent confusion in the preparation of
returns, unintended refunds, and protracted litigation  of  issues  that
have been properly administered up to now.

S. 6610                            30                            A. 9710

  S  2.  Paragraph 2 of subsection (a) of section 632 of the tax law, as
amended by section 65 of part A of chapter 389 of the laws of  1997,  is
amended to read as follows:
  (2) In determining New York source income of a nonresident shareholder
of an S corporation where the election provided for in subsection (a) of
section  six  hundred sixty of this article is in effect, there shall be
included only the portion derived from or connected with New York sourc-
es of such shareholder's pro  rata  share  of  items  of  S  corporation
income,  loss  and  deduction  entering  into his federal adjusted gross
income, increased by reductions for taxes described  in  paragraphs  two
and three of subsection (f) of section thirteen hundred sixty-six of the
internal  revenue  code, as such portion shall be determined under regu-
lations of the commissioner consistent with the applicable  methods  and
rules for allocation under article nine-A or thirty-two of this chapter,
REGARDLESS  OF  WHETHER  OR  NOT  SUCH  ITEM OR REDUCTION IS INCLUDED IN
ENTIRE NET INCOME UNDER ARTICLE NINE-A OR THIRTY-TWO FOR THE  TAX  YEAR.
IF A NONRESIDENT IS A SHAREHOLDER IN AN S CORPORATION WHERE THE ELECTION
PROVIDED  FOR  IN  SUBSECTION  (A)  OF SECTION SIX HUNDRED SIXTY OF THIS
ARTICLE IS IN EFFECT, AND THE S CORPORATION HAS DISTRIBUTED AN  INSTALL-
MENT OBLIGATION UNDER SECTION 453(H)(1)(A) OF THE INTERNAL REVENUE CODE,
THEN ANY GAIN RECOGNIZED ON THE RECEIPT OF PAYMENTS FROM THE INSTALLMENT
OBLIGATION  FOR  FEDERAL INCOME TAX PURPOSES WILL BE TREATED AS NEW YORK
SOURCE INCOME ALLOCATED IN A MANNER CONSISTENT WITH THE APPLICABLE METH-
ODS AND RULES FOR ALLOCATION UNDER ARTICLE NINE-A OR THIRTY-TWO OF  THIS
CHAPTER  IN  THE  YEAR  THAT  THE  ASSETS WERE SOLD. IN ADDITION, IF THE
SHAREHOLDERS OF THE S CORPORATION HAVE MADE AN  ELECTION  UNDER  SECTION
338(H)(10) OF THE INTERNAL REVENUE CODE, THEN ANY GAIN RECOGNIZED ON THE
DEEMED ASSET SALE FOR FEDERAL INCOME TAX PURPOSES WILL BE TREATED AS NEW
YORK  SOURCE INCOME ALLOCATED IN A MANNER CONSISTENT WITH THE APPLICABLE
METHODS AND RULES FOR ALLOCATION UNDER ARTICLE NINE-A OR  THIRTY-TWO  OF
THIS  CHAPTER  IN  THE  YEAR  THAT  THE  SHAREHOLDER  MADE  THE  SECTION
338(H)(10) ELECTION. FOR PURPOSES OF A SECTION 338(H)(10) ELECTION, WHEN
A NONRESIDENT SHAREHOLDER EXCHANGES HIS OR HER S  CORPORATION  STOCK  AS
PART  OF  THE  DEEMED  LIQUIDATION, ANY GAIN OR LOSS RECOGNIZED SHALL BE
TREATED AS THE DISPOSITION OF AN INTANGIBLE ASSET AND WILL NOT  INCREASE
OR  OFFSET  ANY GAIN RECOGNIZED ON THE DEEMED ASSETS SALE AS A RESULT OF
THE SECTION 338(H)(10) ELECTION.
  S 3. Paragraph 1 of subsection (b) of section 631 of the  tax  law  is
amended by adding a new subparagraph (E-1) to read as follows:
  (E-1)  IN  THE  CASE  OF  AN S CORPORATION FOR WHICH AN ELECTION IS IN
EFFECT PURSUANT TO SUBSECTION (A) OF SECTION SIX HUNDRED SIXTY  OF  THIS
ARTICLE  THAT  TERMINATES  ITS TAXABLE STATUS IN NEW YORK, ANY INCOME OR
GAIN RECOGNIZED ON THE RECEIPT OF  PAYMENTS  FROM  AN  INSTALLMENT  SALE
CONTRACT  ENTERED  INTO WHEN THE S CORPORATION WAS SUBJECT TO TAX IN NEW
YORK, ALLOCATED IN A MANNER CONSISTENT WITH THE APPLICABLE  METHODS  AND
RULES FOR ALLOCATION UNDER ARTICLE NINE-A OR THIRTY-TWO OF THIS CHAPTER,
IN THE YEAR THAT THE S CORPORATION SOLD ITS ASSETS.
  S  4.  This  act shall take effect immediately; provided however, that
section two of this act shall apply to all tax years for which the stat-
ute of limitations for seeking a refund or assessing additional tax  are
still  open,  and section three of this act shall apply to taxable years
beginning on or after January 1, 2010.

                                 PART G

S. 6610                            31                            A. 9710

  Section 1. Subparagraph (D) of  paragraph  3  of  subdivision  (b)  of
section 605 of the tax law is REPEALED.
  S  2.  Section 618 of the tax law, as added by chapter 563 of the laws
of 1960, subsection 4 as amended by section 9 of part C of chapter 25 of
the laws of 2009 and subsection 5 as added by chapter 384 of the laws of
1988, is amended to read as follows:
  S 618. New York taxable income of a resident estate or trust.   (A)(1)
The  New York taxable income of a resident estate or trust, OTHER THAN A
RESIDENT NONTESTAMENTARY TRUST WITH ONE OR MORE NONRESIDENT  ASCERTAINA-
BLE  BENEFICIARIES BUT NO INCOME DERIVED FROM OR CONNECTED WITH NEW YORK
SOURCES, means its federal taxable income as defined in the laws of  the
United States for the taxable year, with the following modifications:
  (2)  There  shall  be  subtracted the modifications described in para-
graphs [(4)] FOUR and [(5)]  FIVE  of  subsection  (c)  of  section  six
hundred  twelve  OF  THIS  PART,  with respect to gains from the sale or
other disposition of property, to the extent  such  gains  are  excluded
from federal distributable net income of the estate or trust.
  (3)  There shall be added or subtracted (as the case may be) the share
of the estate or trust in the New York fiduciary  adjustment  determined
under section six hundred nineteen OF THIS PART.
  (4)  There  shall  be  added  or  subtracted  (as the case may be) the
modifications described in paragraphs  [(6),  (10),  (17),  (18),  (19),
(20),  (21),  (22),  (23),  (24), (25), (26), (27), (29), (38) and (39)]
SIX, TEN, SEVENTEEN, EIGHTEEN, NINETEEN, TWENTY, TWENTY-ONE, TWENTY-TWO,
TWENTY-THREE, TWENTY-FOUR, TWENTY-FIVE, TWENTY-SIX, TWENTY-SEVEN,  TWEN-
TY-NINE,  THIRTY-EIGHT  AND  THIRTY-NINE  of subsection (b) and in para-
graphs [(11), (13), (15), (19), (20), (21), (22), (23), (24), (25), (26)
and (28)] ELEVEN, THIRTEEN, FIFTEEN, NINETEEN, TWENTY, TWENTY-ONE, TWEN-
TY-TWO,   TWENTY-THREE,   TWENTY-FOUR,   TWENTY-FIVE,   TWENTY-SIX   AND
TWENTY-EIGHT  of  subsection  (c)  of section six hundred twelve of this
part.
  (5) In the case of a trust, there shall be added  the  amount  of  any
includible  gain,  reduced by any deductions properly allocable thereto,
upon which tax is imposed for the taxable year pursuant to  section  six
hundred forty-four of the internal revenue code.
  (B)  (1)  THE  NEW  YORK  TAXABLE INCOME OF A RESIDENT NONTESTAMENTARY
TRUST WITH ONE OR MORE NONRESIDENT ASCERTAINABLE  BENEFICIARIES  BUT  NO
INCOME  DERIVED  FROM  OR  CONNECTED  WITH NEW YORK SOURCES SHALL BE THE
PRODUCT OF THE NEW YORK TAXABLE INCOME BASE OF THE TRUST MULTIPLIED BY A
FRACTION, THE NUMERATOR OF WHICH IS THE NUMBER OF INDIVIDUAL ASCERTAINA-
BLE BENEFICIARIES OF THE TRUST WHO ARE RESIDENTS, AND THE DENOMINATOR OF
WHICH IS THE TOTAL NUMBER OF INDIVIDUAL ASCERTAINABLE BENEFICIARIES.
  (2) FOR PURPOSES OF THIS SUBSECTION, THE NEW YORK TAXABLE INCOME  BASE
MEANS  THE  TRUST'S FEDERAL TAXABLE INCOME AS DEFINED IN THE LAWS OF THE
UNITED STATES FOR THE TAXABLE YEAR, WITH THE MODIFICATIONS PRESCRIBED IN
PARAGRAPHS TWO, THREE, FOUR AND FIVE OF SUBSECTION (A) OF THIS SECTION.
  (3) FOR PURPOSES OF THIS SECTION, "DERIVED FROM OR CONNECTED WITH  NEW
YORK SOURCES" HAS THE SAME MEANING AS SUCH PHRASE IS USED IN SECTION SIX
HUNDRED  THIRTY-THREE  OF  THIS  ARTICLE  IN RELATION TO THE INCOME OF A
NONRESIDENT TRUST.
  (4) FOR PURPOSES OF THIS SECTION, "ASCERTAINABLE BENEFICIARY" MEANS  A
CURRENTLY  LIVING  ASCERTAINABLE BENEFICIARY WHO HAS A PRESENT OR FUTURE
INTEREST IN THE TRUST, INCLUDING A BENEFICIARY WHOSE  INTEREST  HAS  NOT
VESTED  BECAUSE  IT IS IN A CLASS SUBJECT TO OPEN, AS DEFINED IN SECTION
6-4.8 OF THE ESTATES, POWERS AND TRUSTS LAW,  AND  A  BENEFICIARY  WHOSE
INTEREST  HAS NOT YET VESTED BECAUSE IT IS SUBJECT TO A CONDITION PRECE-

S. 6610                            32                            A. 9710

DENT, AS DEFINED IN SECTION 6-4.10 OF THE  ESTATES,  POWERS  AND  TRUSTS
LAW.
  (5) IF A BENEFICIARY OF A TRUST IS A PARTNERSHIP (OTHER THAN A PUBLIC-
LY TRADED PARTNERSHIP AS DEFINED IN SECTION 7704 OF THE FEDERAL INTERNAL
REVENUE  CODE), SUBCHAPTER K LIMITED LIABILITY COMPANY, OR S CORPORATION
FOR WHICH AN ELECTION HAS BEEN MADE UNDER SUBSECTION (A) OF SECTION  SIX
HUNDRED  SIXTY  OF THIS ARTICLE, THE TRUST SHALL, FOR PURPOSES OF DETER-
MINING THE NUMBER OF ASCERTAINABLE BENEFICIARIES OF THE  TRUST  WHO  ARE
RESIDENTS,  COUNT  EACH  PARTNER,  MEMBER,  OR SHAREHOLDER AS A SEPARATE
BENEFICIARY AND DETERMINE EACH INDIVIDUAL PARTNER'S, MEMBER'S OR  SHARE-
HOLDER'S RESIDENCE SEPARATELY.
  S 3. Subsection 4 of section 618 of the tax law, as separately amended
by  section 5 of part HH-1 of chapter 57 of the laws of 2008 and section
9 of part C of chapter 25 of the laws of 2009, as designated paragraph 4
of subsection (a) by section two of this act,  is  amended  to  read  as
follows:
  (4)  There  shall  be  added  or  subtracted  (as the case may be) the
modifications described in paragraphs  [(6),  (10),  (17),  (18),  (19),
(20),  (21),  (22),  (23),  (24), (25), (26), (27), (28), (29), (38) and
(39)] SIX, TEN, SEVENTEEN, EIGHTEEN, NINETEEN, TWENTY, TWENTY-ONE, TWEN-
TY-TWO,   TWENTY-THREE,    TWENTY-FOUR,    TWENTY-FIVE,    TWENTY-SEVEN,
TWENTY-NINE, THIRTY-EIGHT AND THIRTY-NINE of subsection (b) and in para-
graphs [(11), (13), (15), (19), (20), (21), (22), (23), (24), (25), (26)
and (28)] ELEVEN, THIRTEEN, FIFTEEN, NINETEEN, TWENTY, TWENTY-ONE, TWEN-
TY-TWO,   TWENTY-THREE,   TWENTY-FOUR,   TWENTY-FIVE,   TWENTY-SIX   AND
TWENTY-EIGHT of subsection (c) of section six  hundred  twelve  of  this
part.
  S 4. This act shall take effect immediately and apply to taxable years
beginning  on  or after January 1, 2010; provided that the amendments to
paragraph 4 of subsection (a) of section 618 of  the  tax  law  made  by
section two of this act shall be subject to the expiration and reversion
of such paragraph and shall be deemed to expire therewith when upon such
date the provisions of section three of this act shall take effect.

                                 PART H

  Section 1. The tax law is amended by adding a new section 1703 to read
as follows:
  S 1703. INFORMATION RETURNS RELATING TO PAYMENTS MADE IN SETTLEMENT OF
PAYMENT  CARD AND THIRD PARTY NETWORK TRANSACTIONS. 1. (A) EVERY PAYMENT
SETTLEMENT  ENTITY,  THIRD  PARTY  SETTLEMENT  ORGANIZATION,  ELECTRONIC
PAYMENT  FACILITATOR  OR OTHER THIRD PARTY ACTING ON BEHALF OF A PAYMENT
SETTLEMENT ENTITY, ALL AS DEFINED  IN  SECTION  6050W  OF  THE  INTERNAL
REVENUE CODE AND REFERRED TO HEREIN AS "A REPORTING ENTITY," REQUIRED TO
FILE  INFORMATION  RETURNS PURSUANT TO THAT SECTION SHALL, WITHIN THIRTY
DAYS OF THE FILING THEREOF, FILE WITH THE DEPARTMENT IN  SUCH  FORM  AND
MANNER  AS  PRESCRIBED BY THE COMMISSIONER EITHER (I) A DUPLICATE OF ALL
SUCH INFORMATION RETURNS OR (II) A DUPLICATE OF SUCH INFORMATION RETURNS
RELATED TO PARTICIPATING PAYEES, AS DEFINED  IN  SECTION  6050W  OF  THE
INTERNAL  REVENUE  CODE, WITH A NEW YORK STATE ADDRESS OR NEW YORK STATE
TAXPAYERS. THE COMMISSIONER MAY REQUIRE THAT SUCH RETURNS BE FILED ELEC-
TRONICALLY.
  (B) TO FACILITATE ACCURATE REPORTING BY THE ENTITIES REQUIRED TO  FILE
INFORMATION  RETURNS  PURSUANT  TO  THIS  SECTION,  THE DEPARTMENT SHALL
PROVIDE A LIST OR DATABASE OF NEW YORK STATE  TAXPAYERS  NO  LATER  THAN
FORTY-FIVE  DAYS  PRIOR  TO  THE INFORMATION REPORTING DEADLINE, IN SUCH

S. 6610                            33                            A. 9710

FORM AND MANNER AS  PRESCRIBED  BY  THE  COMMISSIONER.  THE  INFORMATION
INCLUDED IN SUCH LIST OR DATABASE SHALL NOT BE USED BY A REPORTING ENTI-
TY  FOR  ANY PURPOSE OTHER THAN PRODUCING AND FILING INFORMATION RETURNS
PURSUANT TO THIS SECTION.
  (C)  ANY  INFORMATION  RECEIVED  BY  THE  DEPARTMENT ON AN INFORMATION
RETURN FILED PURSUANT TO THIS SECTION, CONCERNING A PERSON  WHO  IS  NOT
SUBJECT TO TAX IN NEW YORK, OR IS NOT SUBJECT TO ANY REQUIREMENT IMPOSED
BY  OR PURSUANT TO THE AUTHORITY OF THIS CHAPTER, MAY NOT BE USED BY THE
DEPARTMENT. THE DEPARTMENT SHALL NOT REDISCLOSE ANY INFORMATION RECEIVED
ON AN INFORMATION RETURN FILED PURSUANT TO THIS SECTION.
  2. (A) ANY REPORTING ENTITY FAILING  TO  FILE  AN  INFORMATION  RETURN
REQUIRED  PURSUANT  TO  SUBDIVISION  ONE OF THIS SECTION WITHIN THE TIME
PRESCRIBED WILL BE SUBJECT TO A PENALTY OF FIFTY DOLLARS FOR EACH  FAIL-
URE, IF FAILURE IS FOR NOT MORE THAN ONE MONTH, WITH AN ADDITIONAL FIFTY
DOLLARS  FOR  EACH  MONTH  OR FRACTION THEREOF DURING WHICH EACH FAILURE
CONTINUES. HOWEVER, THE TOTAL AMOUNT OF PENALTY IMPOSED ON  A  REPORTING
ENTITY MAY NOT EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS ANNUALLY.
  (B)  THE  COMMISSIONER  MAY  WAIVE  ALL  OR ANY PORTION OF ANY PENALTY
IMPOSED BY THIS SUBDIVISION WITH RESPECT TO ANY  VIOLATION  IF  (I)  THE
COMMISSIONER  DETERMINES  THAT  THE FAILURE TO TIMELY FILE A RETURN, WAS
DUE TO REASONABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT, OR (II) RESCIND-
ING THE PENALTY WOULD PROMOTE COMPLIANCE WITH THE REQUIREMENTS  OF  THIS
CHAPTER AND EFFECTIVE TAX ADMINISTRATION.
  S 2. This act shall take effect immediately.

                                 PART I

  Section  1.  Paragraph 1 of subdivision (a) of section 1138 of the tax
law, as amended by chapter 267 of the laws of 1996, is amended  to  read
as follows:
  (1)  If a return required by this article is not filed, or if a return
when filed is incorrect or insufficient, the amount of tax due shall  be
determined  by  the commissioner from [such information as may be avail-
able] THE RECORDS OF THE PERSON LIABLE FOR THE TAX DUE IF THOSE  RECORDS
ARE  MADE  AVAILABLE  TO THE COMMISSIONER AND ARE ADEQUATE, INCLUDING BY
USING  GENERALLY  ACCEPTED  STATISTICAL  SAMPLING  TECHNIQUES  ON  THOSE
RECORDS  AS  AUTHORIZED  BY  SUBDIVISION SIX-A OF SECTION ELEVEN HUNDRED
FORTY-TWO OF THIS PART, UNLESS SUCH PERSON AND THE COMMISSIONER AGREE TO
SOME OTHER METHOD.    If  [necessary]  SUCH  PERSON'S  RECORDS  ARE  NOT
ADEQUATE  OR  ARE NOT MADE AVAILABLE TO THE COMMISSIONER, the tax may be
estimated on the basis of SUCH INFORMATION AS MAY BE AVAILABLE,  INCLUD-
ING  external  indices,  such  as stock on hand, purchases, rental paid,
number of rooms, location, scale of rents or charges,  comparable  rents
or  charges,  type of accommodations and service, number of employees or
other factors.    FOR  THE  PURPOSES  OF  THIS  PARAGRAPH,  RECORDS  ARE
"ADEQUATE"  ONLY  WHEN  THEY  ARE  COMPLETE AND RELIABLE. In the case of
retail food stores and other participants approved for participation  in
the  federal  food  stamp  program under or pursuant to the federal food
stamp act of nineteen hundred seventy-seven (7 U.S.C. S 2011  et  seq.),
as  amended,  whose records are incomplete, UNAVAILABLE or inadequate to
determine tax, the external indices upon which tax may be estimated  and
determined  may  also  include  information  contained  in applications,
updates of applications, redemption certificates,  returns  and  reports
which  such  retail food stores and other participants furnish to or are
furnished by the United States government or this state or  their  agen-
cies  in  order  for  such  retail food stores and other participants to

S. 6610                            34                            A. 9710

participate in the food stamp program or to redeem coupons issued  under
or  pursuant  to such food stamp act and any other available information
considered relevant.  Notice of such determination shall  be  mailed  to
the person or persons liable for the collection or payment of the tax. A
notice  of determination shall be mailed by certified or registered mail
to the person or persons liable for the collection or payment of the tax
at his last known address in or out of this state.  If  such  person  or
persons  is  deceased  or under a legal disability, a notice of determi-
nation may be mailed to his last known address in or out of this  state,
unless  the department has received notice of the existence of a fiduci-
ary relationship with respect to the taxpayer. After  ninety  days  from
the  mailing  of  a  notice  of  determination,  such notice shall be an
assessment of the amount of tax specified in such notice, together  with
the  interest,  additions  to  tax  and penalties stated in such notice,
except only for any such tax or other amounts as to which  the  taxpayer
has within such ninety day period applied to the division of tax appeals
for  a hearing, or unless the commissioner of his own motion shall rede-
termine the same. If the notice  of  determination  is  addressed  to  a
person  outside  of  the United States, such period shall be one hundred
fifty days instead of ninety days.
  S 2. Section 1142 of the tax law is amended by adding a  new  subdivi-
sion 6-a to read as follows:
  6-A.  (A) TO USE GENERALLY ACCEPTED STATISTICAL SAMPLING TECHNIQUES TO
DETERMINE  THE  AMOUNT  OF  TAX  DUE  UNDER   SECTION   ELEVEN   HUNDRED
THIRTY-EIGHT OF THIS PART. THE COMMISSIONER SHALL NOT USE THESE SAMPLING
TECHNIQUES  TO  DETERMINE TAX DUE FROM A PERSON WHOSE "GROSS RECEIPTS OR
SALES", AS THAT TERM IS USED FOR FEDERAL INCOME TAX REPORTING  PURPOSES,
ARE LESS THAN ONE MILLION DOLLARS IN EACH OF THE THREE TAXABLE YEARS FOR
FEDERAL  INCOME  TAX PURPOSES IMMEDIATELY PRECEDING THE CALENDAR YEAR IN
WHICH THE AUDIT IS COMMENCED, OR, IF THAT INFORMATION IS  NOT  AVAILABLE
FOR  THOSE  YEARS, IN EACH OF THE THREE MOST RECENT OF THOSE YEARS (OR A
LESSER NUMBER OF YEARS IF ONLY THE LESSER NUMBER OF YEARS IS  AVAILABLE)
FOR  WHICH  THAT INFORMATION IS AVAILABLE, UNLESS THE PERSON CONSENTS IN
WRITING THAT THE COMMISSIONER MAY USE THESE TECHNIQUES TO DETERMINE  TAX
DUE  FROM  THAT  PERSON.  WITHIN  A  REASONABLE AMOUNT OF TIME AFTER THE
COMMISSIONER DECIDES TO DETERMINE TAX  DUE  USING  STATISTICAL  SAMPLING
TECHNIQUES,  THE  COMMISSIONER SHALL NOTIFY A PERSON FOR WHOM THE AMOUNT
OF TAX DUE IS TO BE DETERMINED USING SUCH TECHNIQUES. SUCH NOTICE  SHALL
DESCRIBE THE SAMPLING TECHNIQUE TO BE USED, INCLUDING THE GENERAL DESIGN
AND SIZE OF THE SAMPLE.
  (B)  THE  COMMISSIONER'S  AUTHORITY  TO  USE  THE  SAMPLING TECHNIQUES
AUTHORIZED BY THIS SUBDIVISION SHALL BE IN ADDITION TO ANY OTHER METHODS
AUTHORIZED BY LAW, AND NOTHING IN THIS SUBDIVISION MAY BE  CONSTRUED  TO
LIMIT  THE USE OF ANY OTHER METHOD. NOR MAY ANYTHING IN THIS SUBDIVISION
OR OTHER PROVISION OF LAW  BE  CONSTRUED  TO  LIMIT  THE  COMMISSIONER'S
AUTHORITY  TO USE GENERALLY ACCEPTED STATISTICAL SAMPLING TECHNIQUES FOR
PURPOSES OTHER THAN DETERMINING  TAX  DUE,  SUCH  AS  EXAMINING  RECORDS
REQUIRED  TO  BE KEPT BY THIS ARTICLE OR RETURNS AND REPORTS REQUIRED TO
BE FILED OR SUBMITTED BY THIS ARTICLE.  STATISTICAL SAMPLING  TECHNIQUES
AND ANY RESULTS THEREFROM SHALL NOT BE DEEMED TO BE AN ESTIMATE BASED ON
AN EXTERNAL INDEX.
  S  3.  This act shall take effect immediately; provided, however, that
the provisions of this act shall apply, with  respect  to  the  determi-
nation  of  tax due under article 28 of the tax law or under or pursuant
to the authority of other provisions of the tax law which incorporate or

S. 6610                            35                            A. 9710

make reference to such article 28, to any tax  due  that  has  not  been
assessed on the date this act becomes a law.

                                 PART J

  Section  1.  Paragraph  1  of subdivision (e) of section 29 of the tax
law, as added by section 1 of part UU-1 of chapter 57  of  the  laws  of
2008, is amended to read as follows:
  (1)  If a tax return preparer is required to file authorized tax docu-
ments electronically pursuant to subdivision (b) of  this  section,  and
that  preparer  fails  to  file one or more of those documents electron-
ically, then that preparer will be subject to a penalty of fifty dollars
for each failure to electronically  file  an  authorized  tax  document,
unless  it  is shown that the failure is due to reasonable cause and not
due to willful neglect. [For  purposes  of  this  paragraph,  reasonable
cause shall include, but not be limited to, a taxpayer's election not to
electronically file the authorized tax document.]
  S  2.  The  tax  law  is amended by adding a new section 33 to read as
follows:
  S 33.  CORRECTION PERIODS FOR ELECTRONIC TAX DOCUMENTS  AND  PAYMENTS.
(A) FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS HAVE THE SPECIFIED
MEANINGS:
  (1)  "ELECTRONIC  FUNDS  WITHDRAWAL"  MEANS  THE  PROCESS BY WHICH THE
DEPARTMENT, WITH A TAXPAYER'S PERMISSION, ORIGINATES AN ELECTRONIC ORDER
FROM ITS BANK TO THE TAXPAYER'S BANK TO WITHDRAW FUNDS FROM THE  TAXPAY-
ER'S  BANK  ACCOUNT SO THAT THE TAXPAYER MAY PAY A TAX LIABILITY ASSOCI-
ATED WITH A TAX DOCUMENT.
  (2) "ELECTRONIC POSTMARK" MEANS A RECORD OF THE DATE AND  TIME  (IN  A
PARTICULAR TIME ZONE) THAT AN AUTHORIZED ELECTRONIC TRANSMITTER RECEIVES
THE  TRANSMISSION  OF  A TAXPAYER'S ELECTRONICALLY FILED TAX DOCUMENT ON
ITS HOST SYSTEM.
  (3) "ELECTRONIC TRANSMITTER" MEANS A PERSON OR ENTITY THAT IS  AUTHOR-
IZED  TO  SUBMIT  ELECTRONIC TAX DOCUMENTS DIRECTLY TO THE DEPARTMENT OR
DIRECTLY TO THE INTERNAL REVENUE SERVICE FOR FORWARDING TO  THE  DEPART-
MENT.
  (4)  "REJECT"  OR  "REJECTED"  MEANS  THAT AN ELECTRONICALLY FILED TAX
DOCUMENT OR AN AUTHORIZATION FOR AN ELECTRONIC FUNDS WITHDRAWAL  IS  NOT
ACCEPTED FOR PROCESSING.
  (5)  "SUBMIT" OR "SUBMITTED" MEANS THE DATE OF THE ELECTRONIC POSTMARK
ASSIGNED BY AN ELECTRONIC TRANSMITTER TO  AN  ELECTRONICALLY  FILED  TAX
DOCUMENT  OR  AUTHORIZATION FOR AN ELECTRONIC FUNDS WITHDRAWAL. HOWEVER,
IF AN ELECTRONIC TRANSMITTER DOES NOT  ASSIGN  AN  ELECTRONIC  POSTMARK,
THEN  AN ELECTRONICALLY FILED TAX DOCUMENT OR AUTHORIZATION FOR AN ELEC-
TRONIC FUNDS WITHDRAWAL SHALL BE DEEMED SUBMITTED ON THE EARLIER OF  THE
DATE  THE INTERNAL REVENUE SERVICE RECEIVES THE ELECTRONICALLY FILED TAX
DOCUMENT OR AUTHORIZATION FOR AN ELECTRONIC  FUNDS  WITHDRAWAL,  OR  THE
DATE  THE  DEPARTMENT  RECEIVES THE ELECTRONICALLY FILED TAX DOCUMENT OR
AUTHORIZATION FOR AN ELECTRONIC FUNDS WITHDRAWAL. IN ANY OF  THE  AFORE-
MENTIONED  CASES,  IF  THE  TAXPAYER  CAN  ESTABLISH  THAT  THE  TIME OF
SUBMISSION, ADJUSTED FOR THE TAXPAYER'S TIME ZONE, WAS TIMELY, THE  TIME
OF SUBMISSION SHALL BE BASED ON THE TAXPAYER'S TIME ZONE.
  (6)  "TAX"  MEANS ANY TAX, FEE, SPECIAL ASSESSMENT OR OTHER IMPOSITION
ADMINISTERED BY THE COMMISSIONER.
  (7) "TAX DOCUMENT" MEANS ANY RETURN, REPORT OR OTHER DOCUMENT RELATING
TO A TAX.

S. 6610                            36                            A. 9710

  (B) IF A TAX DOCUMENT IS REQUIRED OR PERMITTED TO BE  FILED  WITH  THE
DEPARTMENT  ELECTRONICALLY  (WHETHER DIRECTLY, DIRECTLY THROUGH A RETURN
TRANSMITTER OR THROUGH THE INTERNAL REVENUE SERVICE), THE  TAX  DOCUMENT
IS  SUBMITTED ELECTRONICALLY ON OR BEFORE THE DUE DATE FOR SUCH DOCUMENT
(INCLUDING  ANY  EXTENSION  OF  TIME),  AND THE ELECTRONICALLY FILED TAX
DOCUMENT IS REJECTED, THEN THE COMMISSIONER MAY, BY INSTRUCTION, PROVIDE
FOR A REASONABLE PERIOD OF TIME DURING WHICH THE  TAX  DOCUMENT  MAY  BE
CORRECTED  AND RE-SUBMITTED. IF THE CORRECTED TAX DOCUMENT IS RE-SUBMIT-
TED ON OR BEFORE THE EXPIRATION DATE OF THE EXTENDED  TIME  PERIOD,  AND
SUCH  DOCUMENT  IS  ACCEPTED  BY THE DEPARTMENT FOR PROCESSING, THEN THE
RE-SUBMITTED TAX DOCUMENT SHALL BE DEEMED TO HAVE BEEN TIMELY FILED EVEN
THOUGH THE DEPARTMENT RECEIVES IT AFTER THE APPLICABLE DUE DATE (INCLUD-
ING ANY EXTENSION OF TIME).
  (C) (1) IF A TAXPAYER HAS SUBMITTED AN AUTHORIZATION FOR AN ELECTRONIC
FUNDS WITHDRAWAL ON OR BEFORE THE DUE DATE FOR  PAYMENT  (INCLUDING  ANY
EXTENSION  OF  TIME),  AND SUCH AUTHORIZATION IS REJECTED BY THE DEPART-
MENT, THEN THE COMMISSIONER MAY, BY INSTRUCTION, PROVIDE FOR  A  REASON-
ABLE  PERIOD  OF  TIME,  COMMENCING  FROM THE DATE OF REJECTION, FOR THE
TAXPAYER TO RE-SUBMIT THE AUTHORIZATION FOR THE ELECTRONIC  FUNDS  WITH-
DRAWAL.  IF  THE  AUTHORIZATION  FOR  THE ELECTRONIC FUNDS WITHDRAWAL IS
RE-SUBMITTED ON OR BEFORE THE EXPIRATION DATE OF THE EXTENDED TIME PERI-
OD, THEN THE ELECTRONIC FUNDS WITHDRAWAL SHALL BE DEEMED  TO  HAVE  BEEN
TIMELY  PAID EVEN THOUGH THE DEPARTMENT RECEIVES IT AFTER THE APPLICABLE
DUE DATE (INCLUDING ANY EXTENSION OF TIME).
  (2) ANY REASONABLE PERIOD OF TIME PROVIDED FOR BY THE COMMISSIONER FOR
RE-SUBMISSION OF AN AUTHORIZATION FOR AN ELECTRONIC FUNDS WITHDRAWAL MAY
DIFFER FROM THE REASONABLE TIME PERIOD, IF  ANY,  PROVIDED  FOR  BY  THE
COMMISSIONER  WITH RESPECT TO THE ELECTRONICALLY FILED TAX DOCUMENT WITH
WHICH THE TAXPAYER'S ELECTRONIC FUNDS WITHDRAWAL IS ASSOCIATED.
  (3) IN LIEU OF RE-SUBMITTING AN AUTHORIZATION FOR AN ELECTRONIC  FUNDS
WITHDRAWAL,  THE  COMMISSIONER  MAY  PERMIT A TAXPAYER TO INSTEAD PAY BY
SUBSTITUTE MEANS, AS DEFINED BY INSTRUCTION. ANY SUCH INSTRUCTION  SHALL
ADDRESS THE TIMELINESS OF PAYMENT BY SUBSTITUTE MEANS.
  (D)  THE  PROVISIONS  OF  THIS  SECTION  SHALL  NOT APPLY TO TAXPAYERS
PARTICIPATING IN THE ELECTRONIC FUNDS TRANSFER  PROGRAMS  PRESCRIBED  BY
SECTIONS NINE AND TEN OF THIS ARTICLE.
  S  3.  The  tax  law  is amended by adding a new section 34 to read as
follows:
  S 34.  TAX RETURN PREPARERS AND SOFTWARE COMPANIES NOT TO CHARGE SEPA-
RATELY FOR NEW YORK E-FILE SERVICES. (A) FOR PURPOSES OF  THIS  SECTION,
THE FOLLOWING TERMS HAVE THE SPECIFIED MEANINGS:
  (1)  "AUTHORIZED  TAX DOCUMENT" MEANS A TAX DOCUMENT WHICH THE COMMIS-
SIONER HAS AUTHORIZED TO BE FILED ELECTRONICALLY.
  (2) "ELECTRONIC" MEANS COMPUTER TECHNOLOGY.
  (3) "SOFTWARE COMPANY" MEANS A DEVELOPER OF TAX SOFTWARE.
  (4) "TAX" MEANS ANY TAX OR OTHER MATTER ADMINISTERED  BY  THE  COMMIS-
SIONER PURSUANT TO THIS CHAPTER OR ANY OTHER PROVISION OF LAW.
  (5) "TAX DOCUMENT" MEANS A RETURN, REPORT OR ANY OTHER DOCUMENT RELAT-
ING TO A TAX OR OTHER MATTER ADMINISTERED BY THE COMMISSIONER.
  (6)  "TAX  RETURN  PREPARER" MEANS ANY PERSON WHO PREPARES FOR COMPEN-
SATION, OR WHO EMPLOYS OR ENGAGES ONE OR MORE  PERSONS  TO  PREPARE  FOR
COMPENSATION, ANY AUTHORIZED TAX DOCUMENT. FOR PURPOSES OF THIS SECTION,
THE TERM "TAX RETURN PREPARER" ALSO INCLUDES A PAYROLL SERVICE.
  (7)  "TAX  SOFTWARE"  MEANS ANY COMPUTER SOFTWARE PROGRAM INTENDED FOR
TAX RETURN PREPARATION PURPOSES. FOR PURPOSES OF THIS SECTION, THE  TERM
"TAX  SOFTWARE"  INCLUDES, BUT IS NOT LIMITED TO, AN OFF-THE-SHELF SOFT-

S. 6610                            37                            A. 9710

WARE PROGRAM LOADED ONTO A TAX RETURN PREPARER'S OR TAXPAYER'S COMPUTER,
OR AN ONLINE TAX PREPARATION APPLICATION.
  (B)  IT  SHALL  BE  UNLAWFUL  FOR  A TAX RETURN PREPARER OR A SOFTWARE
COMPANY TO CHARGE A SEPARATE FEE FOR THE ELECTRONIC FILING OF AUTHORIZED
TAX DOCUMENTS. IT SHALL ALSO BE UNLAWFUL FOR A SOFTWARE COMPANY TO OFFER
A VERSION OF ITS TAX SOFTWARE THAT CHARGES A SEPARATE FEE FOR THE  ELEC-
TRONIC  FILING  OF  AUTHORIZED TAX DOCUMENTS AND ONE VERSION OF THE SAME
TAX SOFTWARE THAT DOES NOT.
  (C) ANY TAX RETURN PREPARER OR SOFTWARE COMPANY VIOLATING THIS SECTION
WILL BE LIABLE FOR A CIVIL PENALTY OF FIVE HUNDRED DOLLARS FOR THE FIRST
VIOLATION AND ONE THOUSAND DOLLARS FOR EACH  SUCCEEDING  VIOLATION.  THE
CIVIL PENALTIES IMPOSED BY THIS SECTION SHALL BE PAID TO THE COMMISSION-
ER  UPON  NOTICE AND DEMAND, AND WILL BE ASSESSED, COLLECTED AND PAID IN
THE SAME MANNER AS TAXES UNDER ARTICLE TWENTY-SEVEN OF THIS CHAPTER.
  S 4. Paragraph 5 of subsection (u) of section 685 of the tax  law,  as
added  by  section  2  of  part  Q of chapter 61 of the laws of 2005, is
amended to read as follows:
  (5) Failure to electronically  file.  If  a  tax  return  preparer  is
required  to  file  returns  electronically pursuant to paragraph ten of
subsection (g) of section six hundred fifty-eight of this  article,  and
such  preparer fails to file one or more of such returns electronically,
then such preparer shall be subject to a penalty of  fifty  dollars  for
each  such  failure  to electronically file a return, unless it is shown
that such failure is due to reasonable cause  and  not  due  to  willful
neglect.    [For  purposes  of  this  paragraph,  reasonable cause shall
include, but not be limited to, a taxpayer's election not  to  electron-
ically file his or her return.]
  S 5. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis-
trative code of the city of New York, as added by section 4 of part Q of
chapter 61 of the laws of 2005, is amended to read as follows:
  (5)  Failure  to  electronically  file.  If  a  tax return preparer is
required to file returns electronically pursuant  to  paragraph  ten  of
subdivision  (g) of section 11-1758, and such preparer fails to file one
or more of such returns electronically,  then  such  preparer  shall  be
subject to a penalty of fifty dollars for each such failure to electron-
ically  file  a  return,  unless it is shown that such failure is due to
reasonable cause and not due to willful neglect. [For purposes  of  this
paragraph,  reasonable  cause  shall  include,  but not be limited to, a
taxpayer's election not to electronically file his or her return.]
  S 6. This act shall take effect immediately, provided,  however,  that
sections  one,  four and five of this act shall apply to tax returns and
other tax documents required to be filed electronically  by  tax  return
preparers  on  or  after  December 31, 2010, and section two of this act
shall apply to electronic returns and payments made for tax years begin-
ning after December 31, 2010.

                                 PART K

  Section 1. The tax law is amended by adding a new section 31  to  read
as follows:
  S 31. USE OF ALTERNATIVE MEANS OF COMMUNICATION TO PROVIDE TAX NOTICES
AND OTHER TAX DOCUMENTS. NOTWITHSTANDING ANY OTHER PROVISION OF NEW YORK
STATE  LAW OR REGULATION REQUIRING A TAX NOTICE OR OTHER TAX DOCUMENT TO
BE MAILED BY FIRST CLASS MAIL, CERTIFIED MAIL, REGISTERED  MAIL,  CERTI-
FIED  MAIL  RETURN  RECEIPT REQUESTED, OR REGISTERED MAIL RETURN RECEIPT
REQUESTED, OR ANY OTHER SPECIFIED TYPE OF MAILING,  THE  DEPARTMENT  MAY

S. 6610                            38                            A. 9710

USE  ANY  FORM OF COMMUNICATION DEEMED BY THE COMMISSIONER TO BE REASON-
ABLY CALCULATED, UNDER ALL THE CIRCUMSTANCES, TO APPRISE  THE  ADDRESSEE
OF  THE  INFORMATION  CONTAINED  THEREIN, INCLUDING, BUT NOT LIMITED TO,
E-MAIL OR OTHER FORM OF ELECTRONIC COMMUNICATION WHEN THE DEPARTMENT HAS
OBTAINED  THE  ADDRESSEE'S AUTHORIZATION TO COMMUNICATE USING ELECTRONIC
MEANS. IF THE DEPARTMENT DEEMS AN ALTERNATIVE MEANS OF COMMUNICATION  TO
BE  REASONABLY  CALCULATED,  UNDER  ALL  THE CIRCUMSTANCES, TO REACH THE
ADDRESSEE, AND THEN TRANSMITS THE TAX NOTICE OR OTHER  TAX  DOCUMENT  BY
SUCH  MEANS  IN ACCORD WITH ITS ESTABLISHED BUSINESS RULES AND PROCESSES
FOR THAT COMMUNICATION METHOD, THERE SHALL ARISE A PRESUMPTION THAT  THE
TAX  NOTICE  OR  OTHER TAX DOCUMENT WAS DELIVERED TO AND RECEIVED BY THE
ADDRESSEE.
  S 2. This act shall take effect immediately.

                                 PART L

  Section 1. Subdivision fifteenth of section 171 of  the  tax  law,  as
amended  by  chapter  513  of  the  laws  of 2002, is amended to read as
follows:
  Fifteenth. Have authority to compromise any taxes OR OTHER IMPOSITIONS
or any warrant or judgment for taxes OR OTHER  IMPOSITIONS  administered
by the commissioner, and the penalties and interest in connection there-
with, if the tax debtor has been discharged in bankruptcy, [or] is shown
by  proofs  submitted  to  be  insolvent,  [but] OR SHOWS BY PROOFS THAT
COLLECTION IN FULL WOULD CAUSE THE TAX DEBTOR UNDUE ECONOMIC HARDSHIP OR
THAT THERE IS ANY OTHER EXCEPTIONAL MITIGATING CIRCUMSTANCE  THAT  WOULD
RENDER  ACCEPTANCE OF THE COMPROMISE JUST AND APPROPRIATE, PROVIDED THAT
the amount payable in compromise [shall in no event  be  less  than  the
amount, if any, recoverable through legal proceedings, and provided that
where]  REASONABLY  REFLECTS COLLECTION POTENTIAL OR IS OTHERWISE JUSTI-
FIED BY THE PROOFS OFFERED BY THE TAX  DEBTOR.  PROVIDED,  FURTHER,  THE
COMMISSIONER  SHALL  NOT  ACCEPT  ANY  AMOUNT PAYABLE IN COMPROMISE THAT
WOULD UNDERMINE COMPLIANCE WITH THE TAXES OR OTHER IMPOSITIONS  ADMINIS-
TERED  BY  THE  COMMISSIONER,  NOR SHALL THE COMMISSIONER ENTER INTO ANY
OFFER OF COMPROMISE THAT WOULD BE ADVERSE TO THE BEST INTERESTS  OF  THE
STATE.  WHERE  the  amount  owing  for taxes OR OTHER IMPOSITIONS or the
warrant or judgment, exclusive of any penalties and  interest,  is  more
than  one  hundred  thousand dollars, such compromise shall be effective
only when approved by a justice of the supreme court.
  S 2. Subdivision eighteenth-a of  section  171  of  the  tax  law,  as
amended  by  chapter  577  of  the  laws  of 1997, is amended to read as
follows:
  Eighteenth-a. Have authority to compromise civil liability, with  such
qualifications  and  limitations  as may be established pursuant to such
rules and regulations as the  commissioner  may  prescribe,  where  such
liability arises under [this chapter, or under a law enacted pursuant to
the authority of this chapter] A TAX OR OTHER IMPOSITION which is admin-
istered  by  the  [department,  or  under  a law enacted pursuant to the
authority of article two-E of the general city law] COMMISSIONER, at any
time prior to the time  the  tax,  OTHER  IMPOSITION  or  administrative
action  becomes  finally  and irrevocably fixed and no longer subject to
administrative review. Upon acceptance of an offer in compromise by  the
commissioner,  the  matter  may not be reopened except upon a showing of
fraud, malfeasance or misrepresentation of a material fact. The attorney
general may compromise any such liability after reference to the depart-
ment of law for prosecution or defense at any time prior to the time the

S. 6610                            39                            A. 9710

tax, OTHER IMPOSITION or administrative action taken by the [department]
COMMISSIONER is no longer subject to judicial review. Whenever a compro-
mise is made by the [department] COMMISSIONER  of  any  such  liability,
there  shall  be  placed  on  file in the office of the commissioner the
opinion of the counsel for such department,  with  his  OR  HER  reasons
therefor, with a statement of: (a) the amount of tax OR OTHER IMPOSITION
and  any  other  issues which may be the subject of such compromise, (b)
the amount of interest, additions to the tax, or penalty imposed by  law
on  the taxpayer or other persons against whom the administrative action
was taken by the department, and (c) the amount actually paid in accord-
ance with the terms of the compromise.   Notwithstanding  the  preceding
sentence,  no such opinion shall be required with respect to the compro-
mise of any civil liability in which the unpaid amount of tax  OR  OTHER
IMPOSITION which was the subject of the administrative action (including
any  interest,  additions to tax, or penalty) is less than [twenty-five]
FIFTY thousand dollars.
  S 3. This act shall take effect immediately.

                                 PART M

  Section 1. Communication services study. On or before the date that is
245 days after this act shall have become a  law,  the  commissioner  of
taxation  and  finance,  in  consultation  with the department of public
service and the office of real property services, shall  submit  to  the
governor,  the  temporary  president  of  the senate, the speaker of the
assembly, the minority leaders of the senate and the assembly, the chair
and ranking minority member of the senate  finance  committee,  and  the
chair and ranking minority member of the assembly ways and means commit-
tee  a  written  report prepared by the office of tax policy analysis of
the department of taxation and finance. The report shall examine  statu-
tory  and  policy options designed to achieve the goal of improved taxa-
tion of communication services in New York  state  (including,  but  not
limited to, wireline and wireless telecommunication services, telecommu-
nication  services  using  voice  over  internet protocol, and cable and
satellite television services), and the state and local  revenue  impli-
cations  of  those  options. The report shall take into account commonly
accepted goals of tax policy (such as fairness, simplicity and effect on
the economic climate of this state and its communications industry). The
report shall also take into consideration developments of new  technolo-
gies and business models used in the provision of communication services
and  the  desired  goal  that  this  state should formulate an effective
communications tax policy. To this end, the report shall  recommend  tax
policies that shall modernize the taxation of communication services.
  S 2. This act shall take effect immediately.

                                 PART N

  Section  1.  Section  1  of part J of chapter 405 of the laws of 1999,
amending the real property tax law relating to  improving  the  adminis-
tration of the school tax relief (STAR) program, as amended by section 3
of  part  PP-1  of chapter 57 of the laws of 2008, is amended to read as
follows:
  Section 1. Notwithstanding the provisions of article 5 of the  general
construction  law,  the  provisions  of  the tax law amended by sections
94-a, 94-d and 94-g of chapter 2 of the laws of 1995 are hereby  revived
and shall continue in full force and effect as they existed on March 31,

S. 6610                            40                            A. 9710

1999 [through May 31, 2010, when upon such date they shall expire and be
repealed].  Sections  1,  2, 3, 4, and 5, and such part of section 10 of
chapter 336 of the laws of 1999 as relates to providing for  the  effec-
tiveness  of such sections 1, 2, 3, 4 and 5 shall be nullified in effect
on the effective date of this section, except that the  amendments  made
to:  paragraph  (2)  of  subdivision a of section 1612 of the tax law by
such section 1; and subdivision b of section 1612 of the tax law by such
section 2; and the repeal of section 152 of chapter 166 of the  laws  of
1991 made by such section 5 shall continue to remain in effect.
  S  2.  Paragraph 1 of subdivision a of section 1612 of the tax law, as
amended by chapter 336 of the laws  of  1999,  is  amended  to  read  as
follows:
  (1) sixty percent of the total amount for which tickets have been sold
for  a  lawful lottery game introduced on or after the effective date of
this paragraph[, subject to the following provisions:
  (A) drawings in such game shall be held during no more  than  thirteen
hours each day, no more than eight hours of which shall be consecutive;
  (B) such game shall be available only on premises occupied by licensed
lottery sales agents, subject to the following provisions:
  (i)  if  the licensee holds a license issued pursuant to the alcoholic
beverage control law to sell alcoholic beverages for consumption on  the
premises, then not less than twenty-five percent of the gross sales must
result from sales of food;
  (ii)  if  the  licensee does not hold a license issued pursuant to the
alcoholic beverage control law to sell alcoholic beverages for  consump-
tion  on  the  premises,  then  the  premises must have a minimum square
footage greater than two thousand five hundred square feet;
  (iii) notwithstanding the foregoing provisions,  television  equipment
that  automatically  displays  the  results  of  such  drawings  may  be
installed and used without regard to the percentage of food sales or the
square footage if such premises are used as:
  (I) a commercial bowling establishment, or
  (II) a facility authorized under the racing, pari-mutuel wagering  and
breeding law to accept pari-mutuel wagers;
  (C) the rules for the operation of such game shall be as prescribed by
regulations  promulgated  and adopted by the division, provided however,
that such rules shall provide that no person under the age of twenty-one
may participate in such games on the premises of a licensee who holds  a
license  issued  pursuant  to the alcoholic beverage control law to sell
alcoholic beverages for consumption  on  the  premises;  and,  provided,
further,  that such regulations may be revised on an emergency basis not
later than ninety days after the enactment of this paragraph in order to
conform such regulations to the requirements of this paragraph]; or
  S 3. This act shall take effect immediately.

                                 PART O

  Section 1. Section 4 of part C of chapter 383 of  the  laws  of  2001,
amending the tax law and other laws relating to authorizing the division
of  the  lottery  to  conduct a pilot program involving the operation of
video lottery terminals at certain racetracks, as amended by chapter 140
of the laws of 2008, is amended to read as follows:
  S 4. This act shall take effect immediately[; provided, however,  that
the  provisions of this act shall expire and be deemed repealed December
31, 2033].

S. 6610                            41                            A. 9710

  S 2. Section 4 of part C of chapter 383 of the laws of 2001,  amending
the  tax  law and other laws relating to authorizing the division of the
lottery to conduct a pilot program  involving  the  operation  of  video
lottery  terminals  at  certain racetracks, as amended by chapter 286 of
the laws of 2008, is amended to read as follows:
  S  4. This act shall take effect immediately[; provided, however, that
the provisions of this act shall expire and be deemed repealed  December
31, 2050].
  S  3.  Section  13  of  chapter  140  of the laws of 2008 amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
thoroughbred racing is REPEALED.
  S 4. Section 5 of chapter 286 of the laws of 2008 amending the tax law
relating to annual capital improvement credits for video lottery  gaming
operators is REPEALED.
  S  5.  Subdivision  b  of section 1617-a of the tax law, as amended by
section 2 of part Z3 of chapter 62 of the laws of 2003,  is  amended  to
read as follows:
  b.  [Video]  THE HOURS OF OPERATION OF VIDEO lottery gaming shall only
be permitted [for no more than sixteen consecutive hours per day and  on
no day shall such operation be conducted past 2:00 a.m] AS PRESCRIBED BY
THE DIVISION OF THE LOTTERY.
  S  6.  Clause (G) of subparagraph (ii) of paragraph 1 of subdivision b
of section 1612 of the tax law, as amended by chapter 342 of the laws of
2009, is amended to read as follows:
  (G) notwithstanding [any other provisions of  this  section,]  CLAUSES
(A),  (B), (C), (D), (E) AND (F) OF THIS SUBPARAGRAPH, when no more than
one vendor track located in the town of Thompson in Sullivan  county  at
the  site  of  the  former  Concord  Resort at which a qualified capital
investment has been made and  no  fewer  than  one  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 credit of  the  state  lottery  fund  created  by
section  ninety-two-c  of  the state finance law] THE VENDOR'S FEE SHALL
EQUAL THE TOTAL REVENUE WAGERED AT THE  VENDOR  TRACK  AFTER  PAYOUT  OF
PRIZES  PURSUANT TO THIS SUBDIVISION REDUCED BY the greater of (i) twen-
ty-five percent of total revenue after  payout  for  prizes  for  "video
lottery  games"  or  (ii) for the first eight years of operation thirty-
eight million dollars, and beginning 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,  adminis-
tration  and  procurement  of the video lottery terminal operation at no
more than one vendor track located in the town of Thompson  in  Sullivan
county at the site of the former Concord Resort, 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] VENDOR FEE IS CALCULATED 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]  VENDOR'S
FEE  SHALL  BE  FURTHER  REDUCED BY 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] REDUCTION exceed
five million dollars.
  [The balance shall be paid as a vendor's fee to the track operator  of
no  more than one vendor track located in the town of Thompson in Sulli-

S. 6610                            42                            A. 9710

van county at the site of the former Concord Resort  for  serving  as  a
lottery agent under this chapter.]
  Provided,  however,  that in the case of no more than one vendor track
located in the town of Thompson in Sullivan county at the  site  of  the
former Concord Resort with a qualified capital investment, and one thou-
sand  full-time,  permanent  employees  [as  of July first, two thousand
eleven] if at any time after three years of opening  operations  of  the
licensed  video  gaming  facility  or  licensed vendor track, 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  six  hundred  million  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 population 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, lodg-
ing, 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  video  gaming  facility,
vendor  track  or related and adjacent facilities for a minimum of thir-
ty-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 video gaming facility, vendor track or
related and adjacent facilities for a combined  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 one thou-
sand  five  hundred  full-time  permanent employees after three years of
opening operations of the licensed video  gaming  facility  or  licensed
vendor track.
  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) one hundred percent of the  recapture  amount  if  the  employment
shortfall  is  greater  than  sixty-six  and  two-thirds  percent of the
employment goal;

S. 6610                            43                            A. 9710

  (ii) seventy-five percent of the recapture amount  if  the  employment
shortfall  is  greater  than  thirty-three  and one-third percent of the
employment goal;
  (iii)  forty-nine  and one-half percent of the recapture amount if the
employment shortfall is greater than thirty percent  of  the  employment
goal;
  (iv)  twenty-two  percent  of  the  recapture amount if the employment
shortfall is greater than twenty percent of the employment goal;
  (v) eleven percent of the recapture amount if the employment shortfall
is greater than ten percent of the employment goal.
  S 7. This act shall take effect immediately.

                                 PART P

  Section 1. Section 253 of the tax law  is  amended  by  adding  a  new
subdivision 4 to read as follows:
  4.  (A)  A TAX, MEASURED BY THE AMOUNT OF PRINCIPAL DEBT OR OBLIGATION
WHICH IS OR UNDER ANY CONTINGENCY MAY BE SECURED  AT  THE  DATE  OF  THE
EXECUTION  THEREOF,  OR  AT ANY TIME THEREAFTER, BY A SECURITY AGREEMENT
PERTAINING TO A COOPERATIVE INTEREST IN A COOPERATIVE  ORGANIZATION,  AS
EVIDENCED  BY  A  FINANCING  STATEMENT,  IS IMPOSED ON THE FILING OF THE
FINANCING STATEMENT.
  (B) THE RATE AND INCIDENCE OF THE TAX SHALL BE DETERMINED PURSUANT  TO
THIS SECTION.
  (C)  EXCEPT  AS  OTHERWISE  PROVIDED  IN  THIS  SUBDIVISION,  ALL  THE
PROVISIONS OF THIS ARTICLE RELATING TO OR  APPLICABLE  TO  THE  ADMINIS-
TRATION,  COLLECTION,  DETERMINATION AND DISTRIBUTION OF THE TAX IMPOSED
BY THIS SECTION SHALL APPLY TO THE TAX IMPOSED UNDER  THE  AUTHORITY  OF
THIS  SUBDIVISION  WITH  SUCH  MODIFICATION AS MAY BE NECESSARY TO ADAPT
SUCH LANGUAGE TO THE TAX SO AUTHORIZED. ANY REFERENCE TO A MORTGAGE WILL
BE DEEMED TO BE A REFERENCE TO A FINANCING STATEMENT  THAT  EVIDENCES  A
SECURITY  AGREEMENT. SUCH PROVISIONS SHALL APPLY WITH THE SAME FORCE AND
EFFECT AS IF THOSE PROVISIONS HAD BEEN SET  FORTH  IN  THIS  SUBDIVISION
EXCEPT  TO  THE  EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A
PROVISION OF THIS SUBDIVISION OR NOT RELEVANT TO THE TAX  AUTHORIZED  BY
THIS SUBDIVISION.
  (D)  NO  REMEDY  OTHERWISE  AVAILABLE TO A SECURED PARTY UNDER ARTICLE
NINE OF THE UNIFORM COMMERCIAL CODE SHALL  BE  AVAILABLE  TO  ENFORCE  A
SECURITY AGREEMENT PERTAINING TO A COOPERATIVE INTEREST IN A COOPERATIVE
ORGANIZATION  THAT  IS  EVIDENCED  BY A FINANCING STATEMENT, UNLESS THAT
FINANCING STATEMENT IS FILED AND THE TAX IMPOSED PURSUANT TO THE AUTHOR-
ITY OF THIS SUBDIVISION HAS BEEN PAID.
  (E) FOR THE PURPOSES OF THIS SUBDIVISION:
  (1) "COOPERATIVE INTEREST" MEANS AN OWNERSHIP INTEREST  IN  A  COOPER-
ATIVE ORGANIZATION, WHICH INTEREST WHEN CREATED, IS COUPLED WITH POSSES-
SORY RIGHTS OF A PROPRIETARY NATURE IN IDENTIFIED PHYSICAL SPACE BELONG-
ING TO THE COOPERATIVE ORGANIZATION.
  (2)  "COOPERATIVE ORGANIZATION" MEANS AN ORGANIZATION WHICH HAS AS ITS
PRINCIPAL ASSET AN INTEREST IN REAL PROPERTY IN THIS STATE AND IN  WHICH
ORGANIZATION ALL OWNERSHIP INTERESTS ARE COOPERATIVE INTERESTS.
  (3)  "FINANCING  STATEMENT"  MEANS  A RECORD OR RECORDS COMPOSED OF AN
INITIAL FINANCING STATEMENT AND ANY FILED RECORD RELATING TO THE INITIAL
FINANCING STATEMENT.
  (4) "SECURITY AGREEMENT" MEANS AN AGREEMENT THAT CREATES  OR  PROVIDES
FOR A SECURITY INTEREST.

S. 6610                            44                            A. 9710

  (F)  COUNTIES  OR CITIES AUTHORIZED UNDER THIS ARTICLE TO IMPOSE A TAX
ARE AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS TO IMPOSE  IN
SUCH COUNTY OR CITY A TAX ON THE FILING OF FINANCING STATEMENTS PERTAIN-
ING  TO  A  COOPERATIVE  INTEREST IN A COOPERATIVE ORGANIZATION. ANY TAX
THAT  HAS  BEEN  IMPOSED BY A COUNTY OR CITY UNDER THE AUTHORITY OF THIS
ARTICLE SHALL BE DEEMED TO INCLUDE THE AUTHORITY TO IMPOSE  AND  COLLECT
THE  TAX ON THE RECORDING OF A FINANCING STATEMENT PERTAINING TO A COOP-
ERATIVE INTEREST IN A COOPERATIVE ORGANIZATION IN THE SAME MANNER AS THE
LOCAL MORTGAGE RECORDING TAX.
  S 2. Subdivisions 1 and 2 of section 253-a of the tax law, subdivision
1 and paragraph (a) of subdivision 2 as amended by chapter  343  of  the
laws  of  1990  and subdivision 2 as added by chapter 241 of the laws of
1989, are amended to read as follows:
  1. Any city in this state having a population of one million or  more,
acting  through  its  local  legislative  body, is hereby authorized and
empowered to adopt and amend local laws imposing in any  such  city  (A)
prior  to  February  first,  nineteen  hundred eighty-two a tax of fifty
cents, (B) on or after February first, nineteen hundred  eighty-two  and
before  July first, nineteen hundred eighty-two with respect to (i) one,
two or three-family houses, individual cooperative apartments and  indi-
vidual  residential condominium units, and (ii) real property securing a
principal debt or obligation of less than five hundred thousand dollars,
a tax of fifty cents, and with respect to all other real property a  tax
of  one  dollar  and  twelve  and  one-half cents, (C) on and after July
first, nineteen hundred eighty-two and  before  August  first,  nineteen
hundred  ninety  with respect to real property securing a principal debt
or obligation of less than five hundred thousand dollars, a tax of fifty
cents, with respect to one, two or three-family houses, individual coop-
erative apartments and individual residential condominium units securing
a principal debt or obligation of five hundred thousand dollars or more,
a tax of sixty-two and one-half cents, and with  respect  to  all  other
real  property  a  tax of one dollar and twenty-five cents, [and] (D) on
and after August first, nineteen hundred ninety  with  respect  to  real
property  securing  a  principal  debt  or  obligation of less than five
hundred thousand dollars, a tax of one dollar, with respect to one,  two
or  three-family  houses  and  individual  residential condominium units
securing a principal debt or obligation of five hundred thousand dollars
or more, a tax of one dollar and twelve and  one-half  cents,  and  with
respect  to all other real property a tax of one dollar and seventy-five
cents, for each one hundred dollars and each  remaining  major  fraction
thereof of principal debt or obligation which is or under any contingen-
cy may be secured at the date of execution thereof, or at any time ther-
eafter,  by  a  mortgage on such real property situated within such city
and recorded on or after the date upon which such tax takes effect and a
tax of one dollar on such mortgage if the principal debt  or  obligation
which  is  or by any contingency may be secured by such mortgage is less
than one hundred dollars. In each instance where the tax imposed  pursu-
ant to this subdivision is one dollar and twenty-five cents for each one
hundred  dollars and each remaining major fraction thereof of such prin-
cipal debt or obligation, fifty percent of the total amount of such tax,
including fifty percent of any interest or penalties thereon,  shall  be
set  aside  in  a special account by the commissioner of finance of such
city. In each instance where the tax imposed pursuant to  this  subdivi-
sion  is  one dollar and seventy-five cents for each one hundred dollars
and each remaining major fraction thereof  of  such  principal  debt  or
obligation,  thirty-five and seven-tenths percent of the total amount of

S. 6610                            45                            A. 9710

such tax, including thirty-five and seven-tenths percent of any interest
or penalties thereon, shall also be set aside in such  special  account.
Moneys in such account shall be used for payment by such commissioner to
the  state  comptroller  for deposit in the urban mass transit operating
assistance account of the mass transportation operating assistance  fund
of any amount of insufficiency certified by the state comptroller pursu-
ant  to  the  provisions of subdivision six of section eighty-eight-a of
the state finance law, and, on the fifteenth day  of  each  month,  such
commissioner shall transmit all funds in such account on the last day of
the  preceding  month, except the amount required for the payment of any
amount of insufficiency certified by  the  state  comptroller  and  such
amount  as  he deems necessary for refunds and such other amounts neces-
sary to finance the New York city transportation disabled committee  and
the New York city paratransit system as established by section fifteen-b
of  the  transportation  law, provided, however, that such amounts shall
not exceed six percent of the total funds in the account but in no event
be less than two hundred twenty-five thousand  dollars  beginning  April
first,  nineteen hundred eighty-six, and further that beginning November
fifteenth, nineteen hundred eighty-four and  during  the  entire  period
prior  to  operation of such system, the total of such amounts shall not
exceed three hundred seventy-five thousand dollars for  the  administra-
tive  expenses  of  such  committee  and  fifty thousand dollars for the
expenses of the agency designated pursuant to paragraph b of subdivision
five of such section FIFTEEN-B, and other amounts necessary  to  finance
the  operating needs of the private bus companies franchised by the city
of New York and eligible to receive  state  operating  assistance  under
section  eighteen-b  of  the transportation law, provided, however, that
such amounts shall not exceed four percent of the  total  funds  in  the
account,  to the New York city transit authority for mass transit within
the city.  THE TAX IMPOSED UNDER THE AUTHORITY OF PARAGRAPH (D) OF  THIS
SUBDIVISION  IS DEEMED TO INCLUDE A TAX IMPOSED ON THE FILING OF FINANC-
ING STATEMENTS EVIDENCING A SECURITY AGREEMENT PERTAINING TO  A  COOPER-
ATIVE INTEREST IN A COOPERATIVE ORGANIZATION.
  2. (a) For the purpose of determining whether a mortgage is subject to
the  tax authorized to be imposed by paragraph (B) or (C) of subdivision
one of this section at a rate in excess of fifty cents, or by  paragraph
(D)  of  subdivision  one  of  this  section  at a rate in excess of one
dollar, for each one hundred dollars and each remaining  major  fraction
thereof  of  principal  debt  or obligation, the principal debt or obli-
gation which is or under any contingency may be secured at the  date  of
execution  thereof, or at any time thereafter, by such mortgage shall be
aggregated with the principal debt or obligation which is or  under  any
contingency  may  be secured at the date of execution thereof, or at any
time thereafter, by any other mortgage, where such mortgages  form  part
of the same or related transactions and have the same or related mortga-
gors  OR RELATED DEBTORS IN THE CASE OF A FINANCING STATEMENT EVIDENCING
A SECURITY AGREEMENT PERTAINING TO A COOPERATIVE INTEREST IN  A  COOPER-
ATIVE  ORGANIZATION.   If the commissioner of taxation and finance finds
that a mortgage transaction or mortgage transactions  have  been  formu-
lated for the purpose of avoiding or evading a rate of tax authorized to
be imposed under subdivision one of this section in excess of the lowest
such  authorized rate, rather than solely for an independent business or
financial purpose, such commissioner shall treat all  of  the  mortgages
forming  part  of  such transaction or transactions as a single mortgage
for the purpose of determining the applicable rate of tax. For  purposes
of  this  subdivision,  there  shall be a presumption that all mortgages

S. 6610                            46                            A. 9710

offered for recording within  a  period  of  twelve  consecutive  months
having  the  same or related mortgagors OR RELATED DEBTORS are part of a
related transaction, and such presumption  may  be  rebutted  only  with
clear and convincing evidence to the contrary. The commissioner of taxa-
tion  and  finance  may  require  such  affidavits  and  forms,  and may
prescribe such rules and regulations, as he determines to  be  necessary
to enforce the provisions of this subdivision.  ANY REFERENCE TO A MORT-
GAGE  IN  THIS  SUBDIVISION  INCLUDES A FINANCING STATEMENT EVIDENCING A
SECURITY AGREEMENT PERTAINING TO A COOPERATIVE INTEREST IN A COOPERATIVE
ORGANIZATION.
  (b) The term "related", when used in this subdivision  with  reference
to  mortgagors  OR  DEBTORS, shall include, but shall not be limited to,
the following relationships:
  (i) members of a family, including spouses, ancestors, lineal descend-
ants, and brothers and sisters (whether by the whole or half blood);
  (ii) a shareholder and a corporation more than fifty  percent  of  the
value  of the outstanding stock of which is owned or controlled directly
or indirectly by such shareholder;
  (iii) a partner and a partnership more than fifty percent of the capi-
tal or profits interest in which is  owned  or  controlled  directly  or
indirectly by such partner;
  (iv)  a beneficiary and a trust more than fifty percent of the benefi-
cial interest in which is owned or controlled directly or indirectly  by
such beneficiary;
  (v)  two  or more corporations, partnerships, associations, or trusts,
or any combination  thereof,  which  are  owned  or  controlled,  either
directly or indirectly, by the same person, corporation or other entity,
or interests; and
  (vi) a grantor of a trust and such trust.
  S  3. Subsection (e) of section 9--502 of the uniform commercial code,
as added by chapter 84 of the laws  of  2001,  is  amended  to  read  as
follows:
  (e) Contents  of cooperative addendum. A cooperative addendum SHALL BE
FILED AT THE SAME TIME AS A FINANCING STATEMENT AND is  sufficient  only
if it satisfies subsection (a) and also:
       (1) [if  not  filed  simultaneously  with  the  initial financing
           statement,] identifies, by its file number[, the initial] ANY
           PREVIOUSLY FILED financing statement AND COOPERATIVE ADDENDUM
           to which the addendum relates;
       (2) indicates the street address of the cooperative unit;
       (3) indicates  the  county  in  which  the  cooperative  unit  is
           located;
       (4) indicates the city, town, or village in which the cooperative
           unit is located;
       (5) indicates  the  real property tax designation associated with
           the real property in which the cooperative unit is located as
           assigned by the local real property tax assessing  authority;
           [and]
       (6) indicates the name of the cooperative organization, AND
       (7) SPECIFIES THE AMOUNT OF PRINCIPAL DEBT THAT IS SECURED BY THE
           SECURITY  AGREEMENT  EVIDENCED BY THE FINANCING STATEMENT AND
           WHETHER THE DEBT IS FOR THE PURPOSE OF THE  INITIAL  PURCHASE
           OF THE COOPERATIVE INTEREST OR SUPPLEMENTAL FINANCING.
  S  4.  Section  9--601  of  the  uniform commercial code is amended by
adding a new subsection (h) to read as follows:

S. 6610                            47                            A. 9710

  (H) SECURITY INTEREST PERFECTED BY FINANCIAL STATEMENT.  NOTWITHSTAND-
ING ANY PROVISION OF LAW TO THE CONTRARY, IF A SECURED PARTY'S  SECURITY
INTEREST  IS  COLLATERALIZED  BY  THE  SHARES OF STOCK AND A PROPRIETARY
LEASEHOLD OR EITHER OF THE FOREGOING FROM A COOPERATIVE ORGANIZATION AND
THAT  SECURITY  INTEREST MAY BE PERFECTED ONLY BY THE FILING OF A FINAN-
CIAL STATEMENT UNDER SECTION 9--310(D) OF THIS ARTICLE, THEN NO ENFORCE-
MENT PROCEDURES SHALL BE AVAILABLE UNTIL SUCH TAX IS PAID.
  S 5. This act shall take effect on the first day of  the  third  month
after it shall have become a law and shall apply to financing statements
filed on or after such date.

                                 PART Q

  Section  1.  Subparagraph  (E)  of  paragraph  1  of subsection (e) of
section 606 of the tax law, as amended by chapter 105  of  the  laws  of
2006, is amended to read as follows:
  (E)  "Qualifying  real  property taxes" means all real property taxes,
special ad valorem levies and special assessments, exclusive  of  penal-
ties  and  interest, levied on the residence of a qualified taxpayer and
paid during the taxable year [less the credit claimed  under  subsection
(n-1)  of  this section]. In addition, for taxable years beginning after
December thirty-first, nineteen hundred eighty-four, a qualified taxpay-
er may elect to include any  additional  amount  that  would  have  been
levied in the absence of an exemption from real property taxation pursu-
ant to section four hundred sixty-seven of the real property tax law. If
tenant-stockholders  in  a  cooperative housing corporation have met the
requirements of section two hundred sixteen of the internal revenue code
by which they are allowed a deduction for real estate taxes, the  amount
of  taxes  so allowable, or which would be allowable if the taxpayer had
filed returns on a cash basis, shall be qualifying real property  taxes.
If  a  residence is owned by two or more individuals as joint tenants or
tenants in common, and one or more than one individual is not  a  member
of  the  household,  qualifying real property taxes is that part of such
taxes on the residence which reflects the ownership  percentage  of  the
qualified  taxpayer  and  members of his household. If a residence is an
integral part of a larger unit, qualifying real property taxes shall  be
limited  to  that  amount of such taxes paid as may be reasonably appor-
tioned to such residence. If a household owns and occupies two  or  more
residences during different periods in the same taxable year, qualifying
real  property  taxes  shall  be the sum of the prorated qualifying real
property taxes attributable to the household  during  the  periods  such
household  occupies  each  of such residences. If the household owns and
occupies a residence for part of the taxable year and rents a  residence
for  part of the same taxable year, it may include both the proration of
qualifying real property taxes on the residence owned and the real prop-
erty tax equivalent with respect to the months the residence is  rented.
Provided,  however,  for  purposes  of  the  credit  allowed  under this
subsection, qualifying real property taxes may be included by  a  quali-
fied  taxpayer  only  to  the extent that such taxpayer or the spouse of
such taxpayer occupying such residence for six months  or  more  of  the
taxable year owns or has owned the residence and paid such taxes.
  S  2. Section 606 of the tax law is amended by adding a new subsection
(e-2) to read as follows:
  (E-2) SCHOOL TAX CIRCUIT  BREAKER  CREDIT.  1.  DEFINITIONS.  FOR  THE
PURPOSES OF THIS SUBSECTION:

S. 6610                            48                            A. 9710

  (A)  "QUALIFIED  TAXPAYER"  MEANS  A  RESIDENT INDIVIDUAL WHO OWNS THE
RESIDENTIAL REAL PROPERTY IN WHICH HE OR SHE RESIDES, AND HAS USED  SUCH
RESIDENTIAL  REAL  PROPERTY AS HIS OR HER PRIMARY RESIDENCE FOR NOT LESS
THAN SIX MONTHS OF THE TAXABLE YEAR.
  (B)  "HOUSEHOLD"  OR  "MEMBERS  OF  THE HOUSEHOLD" SHALL HAVE THE SAME
MEANING AS SET FORTH IN SUBPARAGRAPH (B) OF PARAGRAPH ONE OF  SUBSECTION
(E) OF THIS SECTION.
  (C)  "HOUSEHOLD GROSS INCOME" SHALL HAVE THE SAME MEANING AS SET FORTH
IN SUBPARAGRAPH (C) OF PARAGRAPH ONE OF SUBSECTION (E) OF  THIS  SECTION
BUT   SHALL   BE  DECREASED  BY  MODIFICATIONS  IN  PARAGRAPHS  SIXTEEN,
TWENTY-TWO AND THIRTY-SEVEN OF SUBSECTION  (C)  AND  SUBSECTION  (L)  OF
SECTION  SIX  HUNDRED TWELVE OF THIS ARTICLE; PROVIDED HOWEVER, THAT, IN
CALCULATING HOUSEHOLD GROSS INCOME, THE AMOUNT OF ANY LOSS FROM EACH THE
FOLLOWING CATEGORIES OR ITEMS DEDUCTED IN DETERMINING  FEDERAL  ADJUSTED
GROSS INCOME SHALL NOT EXCEED THREE THOUSAND DOLLARS:
  (I) PARTNERSHIPS AND S CORPORATIONS,
  (II) RENTAL REAL ESTATE AND ROYALTIES,
  (III) BUSINESS,
  (IV) FARMING,
  (V) NET OPERATING LOSS, AND
  (VI) REAL ESTATE MORTGAGE INVESTMENT CONDUITS.
  (D)  "RESIDENTIAL REAL PROPERTY" MEANS A DWELLING IN THIS STATE, OWNED
BY A QUALIFIED TAXPAYER AND USED BY THE TAXPAYER AS HIS OR  HER  PRIMARY
RESIDENCE,  AND  SO MUCH OF THE LAND ABUTTING IT AS IS REASONABLY NECES-
SARY FOR USE OF THE DWELLING AS A HOME, AND MAY CONSIST OF A PART  OF  A
MULTI-DWELLING  OR  MULTI-PURPOSE  BUILDING  INCLUDING  A COOPERATIVE OR
CONDOMINIUM, BUT NOT A RENTED DWELLING OR RENTAL UNITS WITHIN  A  SINGLE
DWELLING.  RESIDENCE INCLUDES A TRAILER OR MOBILE HOME, USED EXCLUSIVELY
FOR RESIDENTIAL PURPOSES AND DEFINED AS REAL PROPERTY PURSUANT TO  PARA-
GRAPH  (G)  OF SUBDIVISION TWELVE OF SECTION ONE HUNDRED TWO OF THE REAL
PROPERTY TAX LAW.
  (E) "NET SCHOOL TAXES" MEANS THE SCHOOL TAXES LEVIED AND PAID  ON  THE
RESIDENTIAL  REAL  PROPERTY OWNED AND OCCUPIED BY THE QUALIFIED TAXPAYER
AFTER ANY EXEMPTION OR ABATEMENT RECEIVED PURSUANT TO THE REAL  PROPERTY
TAX LAW.
  2.  CREDIT.  (A) SUBJECT IN EACH YEAR TO THE AVAILABILITY OF MONEYS IN
THE PROPERTY TAX CIRCUIT BREAKER RESERVE  FUND  ESTABLISHED  BY  SECTION
NINETY-TWO-GG  OF  THE  STATE FINANCE LAW, A QUALIFIED TAXPAYER SHALL BE
ALLOWED A CREDIT AGAINST THE TAXES IMPOSED BY THIS ARTICLE EQUAL TO  THE
EXCESS  AMOUNT  OF  NET  SCHOOL  TAXES  PAID OVER THE MAXIMUM SCHOOL TAX
AMOUNT APPLICABLE TO HIM OR HER AS SET FORTH IN PARAGRAPH THREE OF  THIS
SUBSECTION, MULTIPLIED BY A FIXED PERCENTAGE, THAT SHALL CAUSE, AS NEAR-
LY  AS  POSSIBLE  THE  FULL  UTILIZATION OF THE MONEYS AVAILABLE IN SUCH
RESERVE FUND. SUCH FIXED PERCENTAGE SHALL BE DETERMINED BY  THE  COMMIS-
SIONER IN CONSULTATION WITH THE DIRECTOR OF THE BUDGET FOR EACH SUBPARA-
GRAPH OF PARAGRAPH THREE OF THIS SUBSECTION NO LATER THAN JUNE THIRTIETH
EACH YEAR. NO SUCH CREDIT SHALL BE ALLOWED IF THE HOUSEHOLD GROSS INCOME
OF  A  QUALIFIED  TAXPAYER  RESIDING IN THE CITY OF NEW YORK, OR NASSAU,
SUFFOLK,  ROCKLAND,  WESTCHESTER,  PUTNAM,  ORANGE  OR  DUTCHESS  COUNTY
EXCEEDS  THREE  HUNDRED  THOUSAND  DOLLARS,  AND  IF THE HOUSEHOLD GROSS
INCOME OF A QUALIFIED TAXPAYER RESIDING IN ANY OTHER COUNTY OF THE STATE
EXCEEDS TWO HUNDRED THOUSAND DOLLARS. IN TWO THOUSAND TWELVE AND  THERE-
AFTER,  THE  HOUSEHOLD  GROSS  INCOME  LIMITS  SPECIFIED IN THE PREVIOUS
SENTENCE SHALL BE INCREASED BY AN AMOUNT EQUAL  TO  (I)  SUCH  HOUSEHOLD
GROSS  INCOME  LIMIT, MULTIPLIED BY (II) THE RATE OF INFLATION AS DETER-
MINED UNDER SUBPARAGRAPH (F) OF PARAGRAPH THREE OF THIS  SUBSECTION  FOR

S. 6610                            49                            A. 9710

THAT  YEAR.  IF  ANY  INCREASE IS NOT A MULTIPLE OF ONE HUNDRED DOLLARS,
SUCH INCREASE SHALL BE ROUNDED TO THE NEAREST MULTIPLE  OF  ONE  HUNDRED
DOLLARS.
  (B) (I) FOR TAX YEARS TWO THOUSAND TWELVE AND THEREAFTER, THE VALUE OF
THE CREDIT SHALL BE MULTIPLIED BY AN ADJUSTMENT FACTOR, WHICH IS A FRAC-
TION  THE  NUMERATOR  OF WHICH IS THE CHANGE IN THE COST OF LIVING SINCE
TWO THOUSAND ELEVEN, AND THE DENOMINATOR OF WHICH IS THE CHANGE  IN  THE
SCHOOL  DISTRICT  TAX LEVY PER PUPIL SINCE TWO THOUSAND ELEVEN.  A SEPA-
RATE ADJUSTMENT FACTOR SHALL BE DETERMINED FOR EACH SCHOOL DISTRICT.
  (II) THE NUMERATOR OF THE ADJUSTMENT FACTOR SHALL BE COMPUTED  AS  THE
PRODUCT OF THE GROSS APPLICABLE RATES OF INFLATION FOR ALL YEARS BETWEEN
TWO THOUSAND ELEVEN AND THE CURRENT YEAR WHERE:
  (I)  THE  GROSS  APPLICABLE RATE OF INFLATION IS OBTAINED BY COMPUTING
THE ANNUAL RATE OF INFLATION AND TAKING THE LESSER OF  FOUR  PERCENT  OR
1.2  TIMES  THE ANNUAL RATE OF INFLATION AND ADDING ONE. FOR PURPOSES OF
THIS PARAGRAPH, THE ANNUAL RATE OF INFLATION SHALL BE THE PERCENTAGE (IF
ANY) BY WHICH THE CONSUMER PRICE INDEX  FOR  THE  IMMEDIATELY  PRECEDING
YEAR  EXCEEDS  THE CONSUMER PRICE INDEX FOR THE PRIOR YEAR. THE CONSUMER
PRICE INDEX FOR ANY YEAR SHALL BE THE  AVERAGE  OF  THE  CONSUMER  PRICE
INDEX  AS  OF  THE SECOND QUARTER OF THAT YEAR. THE TERM "CONSUMER PRICE
INDEX" MEANS THE CONSUMER PRICE INDEX FOR URBAN WAGE EARNERS  AND  CLER-
ICAL WORKERS (CPI-W) PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR,
BUREAU OF LABOR STATISTICS.
  (III)  THE  DENOMINATOR  OF THE ADJUSTMENT FACTOR SHALL BE COMPUTED AS
ONE PLUS THE PERCENTAGE BY WHICH THE PER PUPIL TAX LEVY FOR THE  CURRENT
SCHOOL YEAR EXCEEDS THE PER PUPIL TAX LEVY FOR THE TWO THOUSAND TEN--TWO
THOUSAND ELEVEN SCHOOL YEAR.
  (IV)  FOR  PURPOSES  OF THIS PARAGRAPH, THE PER PUPIL TAX LEVY FOR ANY
SCHOOL YEAR SHALL BE CALCULATED AS FOLLOWS:
  (I) DETERMINE THE TOTAL SCHOOL TAX LEVY IN THE SCHOOL DISTRICT FOR THE
CURRENT SCHOOL YEAR,  AS  CERTIFIED  TO  THE  OFFICE  OF  REAL  PROPERTY
SERVICES  BY THE OFFICIAL WHO COMPUTES TAX RATES FOR THE SCHOOL DISTRICT
BY JANUARY THIRTY-FIRST OF THAT SCHOOL YEAR.
  (II) DIVIDE THE AMOUNT CERTIFIED IN CLAUSE (I) OF THIS SUBPARAGRAPH BY
THE RESIDENT PUBLIC SCHOOL DISTRICT ENROLLMENT FOR THE CURRENT  YEAR  AS
DEFINED  IN PARAGRAPH N OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED
TWO OF THE EDUCATION LAW, BASED ON  AN  ELECTRONIC  DATA  FILE  USED  TO
PRODUCE  THE SCHOOL AID COMPUTER LISTING PRODUCED BY THE COMMISSIONER ON
NOVEMBER FIFTEENTH, OR SUCH ALTERNATIVE DATE AS MAY BE REQUESTED BY  THE
DIRECTOR  OF  THE BUDGET FOR THE PURPOSE OF PREPARATION OF THE EXECUTIVE
BUDGET, PURSUANT TO PARAGRAPH B OF  SUBDIVISION  TWENTY-ONE  OF  SECTION
THREE  HUNDRED FIVE OF THE EDUCATION LAW, AS CERTIFIED TO THE DEPARTMENT
BY THE STATE EDUCATION DEPARTMENT BY JANUARY THIRTY-FIRST OF THAT SCHOOL
YEAR.
  3. MAXIMUM SCHOOL TAX.  (A) IF THE AMOUNT AVAILABLE  IN  THE  PROPERTY
TAX  CIRCUIT  BREAKER  RESERVE  FUND  IS  AT  LEAST  ONE HUNDRED MILLION
DOLLARS, BUT LESS THAN OR EQUAL TO FIVE  HUNDRED  MILLION  DOLLARS,  THE
CREDIT  ALLOWED  BY  THIS  SUBPARAGRAPH  SHALL  NOT  EXCEED TWO THOUSAND
DOLLARS AND THE MAXIMUM SCHOOL TAX AMOUNT IS AS FOLLOWS:
  (I) IN THE CITY OF NEW YORK, AND  THE  COUNTIES  OF  NASSAU,  SUFFOLK,
ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS:
     HOUSEHOLD GROSS INCOME          MAXIMUM SCHOOL TAX AMOUNT
     ONE HUNDRED TWENTY THOUSAND     SIX PERCENT OF THE
     DOLLARS OR LESS                 HOUSEHOLD GROSS INCOME
     MORE THAN ONE HUNDRED           SEVEN PERCENT OF
     TWENTY THOUSAND                 THE HOUSEHOLD

S. 6610                            50                            A. 9710

     DOLLARS, BUT                    GROSS INCOME
     LESS THAN OR EQUAL TO
     ONE HUNDRED SEVENTY-FIVE
     THOUSAND DOLLARS

     MORE THAN ONE HUNDRED           EIGHT PERCENT OF
     SEVENTY-FIVE THOUSAND           THE HOUSEHOLD
     DOLLARS, BUT LESS THAN          GROSS INCOME
     OR EQUAL TO THREE HUNDRED
     THOUSAND DOLLARS
  (II) IN ALL OTHER COUNTIES IN THE STATE:
     HOUSEHOLD GROSS                 MAXIMUM SCHOOL TAX AMOUNT
     INCOME

     NINETY THOUSAND                 SIX PERCENT OF THE
     DOLLARS OR LESS                 HOUSEHOLD GROSS INCOME
     MORE THAN NINETY                SEVEN PERCENT OF
     THOUSAND DOLLARS, BUT           THE HOUSEHOLD
     LESS THAN OR EQUAL TO           GROSS INCOME
     ONE HUNDRED FIFTY
     THOUSAND DOLLARS

     MORE THAN ONE HUNDRED           EIGHT PERCENT OF
     FIFTY THOUSAND DOLLARS,         THE HOUSEHOLD
     BUT LESS THAN OR EQUAL          GROSS INCOME
     TO TWO HUNDRED THOUSAND
     DOLLARS
  (B)  IF  THE  AMOUNT  AVAILABLE  IN  THE  PROPERTY TAX CIRCUIT BREAKER
RESERVE FUND IS MORE THAN FIVE HUNDRED MILLION DOLLARS BUT LESS THAN  OR
EQUAL  TO  ONE  BILLION DOLLARS, THE CREDIT ALLOWED BY THIS SUBPARAGRAPH
SHALL NOT EXCEED TWO THOUSAND TWO HUNDRED FIFTY DOLLARS AND THE  MAXIMUM
SCHOOL TAX AMOUNT IS AS FOLLOWS:
  (I)  IN  THE  CITY  OF  NEW YORK, AND THE COUNTIES OF NASSAU, SUFFOLK,
ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS:
     HOUSEHOLD GROSS INCOME          MAXIMUM SCHOOL TAX AMOUNT
     ONE HUNDRED TWENTY THOUSAND     FIVE PERCENT OF THE
     DOLLARS OR LESS                 HOUSEHOLD GROSS INCOME
     MORE THAN ONE HUNDRED           SIX PERCENT OF
     TWENTY THOUSAND                 THE HOUSEHOLD
     DOLLARS, BUT                    GROSS INCOME
     LESS THAN OR EQUAL TO
     ONE HUNDRED SEVENTY-FIVE
     THOUSAND DOLLARS

     MORE THAN ONE HUNDRED           SEVEN PERCENT OF
     SEVENTY-FIVE THOUSAND           THE HOUSEHOLD
     DOLLARS, BUT LESS THAN          GROSS INCOME
     OR EQUAL TO THREE HUNDRED
     THOUSAND DOLLARS
  (II) IN ALL OTHER COUNTIES IN THE STATE:

     HOUSEHOLD GROSS                 MAXIMUM SCHOOL TAX AMOUNT
     INCOME
     NINETY THOUSAND                 FIVE PERCENT OF THE
     DOLLARS OR LESS                 HOUSEHOLD GROSS INCOME
     MORE THAN NINETY                SIX PERCENT OF

S. 6610                            51                            A. 9710

     THOUSAND DOLLARS, BUT           THE HOUSEHOLD
     LESS THAN OR EQUAL TO           GROSS INCOME
     ONE HUNDRED FIFTY
     THOUSAND DOLLARS

     MORE THAN ONE HUNDRED           SEVEN PERCENT OF
     FIFTY THOUSAND DOLLARS,         THE HOUSEHOLD
     BUT LESS THAN OR EQUAL          GROSS INCOME
     TO TWO HUNDRED THOUSAND
     DOLLARS
  (C)  IF  THE  AMOUNT  AVAILABLE  IN  THE  PROPERTY TAX CIRCUIT BREAKER
RESERVE FUND IS MORE THAN ONE BILLION DOLLARS BUT LESS THAN OR EQUAL  TO
ONE  BILLION  FIVE  HUNDRED  MILLION DOLLARS, THE CREDIT ALLOWED BY THIS
SUBPARAGRAPH SHALL NOT EXCEED TWO THOUSAND TWO HUNDRED FIFTY DOLLARS AND
THE MAXIMUM SCHOOL TAX AMOUNT IS AS FOLLOWS:
  (I) IN THE CITY OF NEW YORK, AND  THE  COUNTIES  OF  NASSAU,  SUFFOLK,
ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS:
     HOUSEHOLD GROSS INCOME          MAXIMUM SCHOOL TAX AMOUNT
     ONE HUNDRED TWENTY THOUSAND     FOUR PERCENT OF THE
     DOLLARS OR LESS                 HOUSEHOLD GROSS INCOME
     MORE THAN ONE HUNDRED           FIVE PERCENT OF
     TWENTY THOUSAND                 THE HOUSEHOLD
     DOLLARS, BUT                    GROSS INCOME
     LESS THAN OR EQUAL TO
     ONE HUNDRED SEVENTY-FIVE
     THOUSAND DOLLARS

     MORE THAN ONE HUNDRED           SIX PERCENT OF
     SEVENTY-FIVE THOUSAND           THE HOUSEHOLD
     DOLLARS, BUT LESS THAN          GROSS INCOME
     OR EQUAL TO THREE HUNDRED
     THOUSAND DOLLARS
  (II) IN ALL OTHER COUNTIES IN THE STATE:

     HOUSEHOLD GROSS                 MAXIMUM SCHOOL TAX AMOUNT
     INCOME

     NINETY THOUSAND                 FOUR PERCENT OF THE
     DOLLARS OR LESS                 HOUSEHOLD GROSS INCOME
     MORE THAN NINETY                FIVE PERCENT OF
     THOUSAND DOLLARS, BUT           THE HOUSEHOLD
     LESS THAN OR EQUAL TO           GROSS INCOME
     ONE HUNDRED FIFTY
     THOUSAND DOLLARS

     MORE THAN ONE HUNDRED           SIX PERCENT OF
     FIFTY THOUSAND DOLLARS,         THE HOUSEHOLD
     BUT LESS THAN OR EQUAL          GROSS INCOME
     TO TWO HUNDRED THOUSAND
     DOLLARS
  (D)  IF  THE  AMOUNT  AVAILABLE  IN  THE  PROPERTY TAX CIRCUIT BREAKER
RESERVE FUND IS MORE THAN ONE BILLION FIVE HUNDRED MILLION  DOLLARS  BUT
LESS  THAN  OR  EQUAL TO TWO BILLION DOLLARS, THE CREDIT ALLOWED BY THIS
SUBPARAGRAPH SHALL NOT EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS AND  THE
MAXIMUM SCHOOL TAX AMOUNT IS AS FOLLOWS:

S. 6610                            52                            A. 9710

  (I)  IN  THE  CITY  OF  NEW YORK, AND THE COUNTIES OF NASSAU, SUFFOLK,
ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS:
     HOUSEHOLD GROSS INCOME          MAXIMUM SCHOOL TAX AMOUNT
     ONE HUNDRED TWENTY THOUSAND     THREE PERCENT OF THE
     DOLLARS OR LESS                 HOUSEHOLD GROSS INCOME
     MORE THAN ONE HUNDRED           FOUR PERCENT OF
     TWENTY THOUSAND                 THE HOUSEHOLD
     DOLLARS, BUT                    GROSS INCOME
     LESS THAN OR EQUAL TO
     ONE HUNDRED SEVENTY-FIVE
     THOUSAND DOLLARS

     MORE THAN ONE HUNDRED           FIVE PERCENT OF
     SEVENTY-FIVE THOUSAND           THE HOUSEHOLD
     DOLLARS, BUT LESS THAN          GROSS INCOME
     OR EQUAL TO THREE HUNDRED
     THOUSAND DOLLARS
  (II) IN ALL OTHER COUNTIES IN THE STATE:
     HOUSEHOLD GROSS                 MAXIMUM SCHOOL TAX AMOUNT
     INCOME

     NINETY THOUSAND                 THREE PERCENT OF THE
     DOLLARS OR LESS                 HOUSEHOLD GROSS INCOME
     MORE THAN NINETY                FOUR PERCENT OF
     THOUSAND DOLLARS, BUT           THE HOUSEHOLD
     LESS THAN OR EQUAL TO           GROSS INCOME
     ONE HUNDRED FIFTY
     THOUSAND DOLLARS

     MORE THAN ONE HUNDRED           FIVE PERCENT OF
     FIFTY THOUSAND DOLLARS,         THE HOUSEHOLD
     BUT LESS THAN OR EQUAL          GROSS INCOME
     TO TWO HUNDRED THOUSAND
     DOLLARS
  (E)  IF  THE  AMOUNT  AVAILABLE  IN  THE  PROPERTY TAX CIRCUIT BREAKER
RESERVE FUND IS MORE THAN TWO BILLION DOLLARS,  THE  CREDIT  ALLOWED  BY
THIS  SUBPARAGRAPH SHALL NOT EXCEED THREE THOUSAND DOLLARS AND THE MAXI-
MUM SCHOOL TAX AMOUNT IS AS FOLLOWS:
  (I) IN THE CITY OF NEW YORK, AND  THE  COUNTIES  OF  NASSAU,  SUFFOLK,
ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS:
     HOUSEHOLD GROSS INCOME          MAXIMUM SCHOOL TAX AMOUNT
     ONE HUNDRED TWENTY THOUSAND     TWO AND A HALF PERCENT OF THE
     DOLLARS OR LESS                 HOUSEHOLD GROSS INCOME
     MORE THAN ONE HUNDRED           THREE AND A HALF PERCENT OF
     TWENTY THOUSAND                 THE HOUSEHOLD GROSS INCOME
     DOLLARS, BUT
     LESS THAN OR EQUAL TO
     ONE HUNDRED SEVENTY-FIVE
     THOUSAND DOLLARS

     MORE THAN ONE HUNDRED           FOUR AND A HALF PERCENT OF
     SEVENTY-FIVE THOUSAND           THE HOUSEHOLD GROSS INCOME
     DOLLARS, BUT LESS THAN
     OR EQUAL TO THREE HUNDRED
     THOUSAND DOLLARS
  (II) IN ALL OTHER COUNTIES IN THE STATE:

S. 6610                            53                            A. 9710

     HOUSEHOLD GROSS                 MAXIMUM SCHOOL TAX AMOUNT
     INCOME

     NINETY THOUSAND                 TWO AND A HALF PERCENT OF
     DOLLARS OR LESS                 THE HOUSEHOLD GROSS INCOME
     MORE THAN NINETY                THREE AND A HALF PERCENT OF
     THOUSAND DOLLARS, BUT           THE HOUSEHOLD GROSS INCOME
     LESS THAN OR EQUAL TO
     ONE HUNDRED FIFTY
     THOUSAND DOLLARS

     MORE THAN ONE HUNDRED           FOUR AND A HALF PERCENT OF
     FIFTY THOUSAND DOLLARS,         THE HOUSEHOLD GROSS INCOME
     BUT LESS THAN OR EQUAL
     TO TWO HUNDRED THOUSAND
     DOLLARS
  (F)  FOR  TWO THOUSAND TWELVE AND THEREAFTER, THE THRESHOLDS OF HOUSE-
HOLD GROSS INCOME SET FORTH IN THIS PARAGRAPH SHALL BE INCREASED  BY  AN
AMOUNT EQUAL TO (I) SUCH HOUSEHOLD GROSS INCOME THRESHOLD, MULTIPLIED BY
(II)  THE  RATE  OF  INFLATION  FOR  THAT YEAR. IF ANY INCREASE IS NOT A
MULTIPLE OF ONE HUNDRED DOLLARS, SUCH INCREASE SHALL BE ROUNDED  TO  THE
NEAREST MULTIPLE OF ONE HUNDRED DOLLARS.
THE  RATE  OF  INFLATION  SHALL  BE THE PERCENTAGE (IF ANY) BY WHICH THE
CONSUMER PRICE INDEX FOR THE PRECEDING YEAR, EXCEEDS THE CONSUMER  PRICE
INDEX  FOR  TWO THOUSAND ELEVEN.   THE CONSUMER PRICE INDEX FOR ANY YEAR
SHALL BE THE AVERAGE OF THE CONSUMER PRICE INDEX AS OF THE SECOND  QUAR-
TER  OF  THAT  YEAR.  THE TERM "CONSUMER PRICE INDEX" MEANS THE CONSUMER
PRICE  INDEX  FOR  URBAN  WAGE  EARNERS  AND  CLERICAL  WORKERS  (CPI-W)
PUBLISHED  BY  THE  UNITED  STATES  DEPARTMENT OF LABOR, BUREAU OF LABOR
STATISTICS.
  4. IF THE AMOUNT OF THE CREDIT ALLOWABLE PURSUANT TO  THIS  SUBSECTION
EXCEEDS  A  QUALIFIED  TAXPAYER'S  TAX  FOR  A TAXABLE YEAR, SUCH EXCESS
AMOUNT SHALL BE TREATED AS AN OVERPAYMENT TO BE CREDITED OR REFUNDED  IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE; PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. IF A
QUALIFIED  TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT TO SECTION
SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, SUCH  TAXPAYER  MAY  NEVERTHELESS
RECEIVE AS AN OVERPAYMENT THE FULL AMOUNT OF SUCH CREDIT, WITHOUT INTER-
EST.
  5. NO CREDIT SHALL BE ALLOWED UNDER THIS SUBSECTION:
  (A) TO AN INDIVIDUAL WITH RESPECT TO WHOM A DEDUCTION UNDER SUBSECTION
(C)  OF  SECTION  ONE  HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE CODE IS
ALLOWABLE TO ANOTHER TAXPAYER FOR THE TAXABLE YEAR;
  (B) WITH RESPECT TO RESIDENTIAL REAL PROPERTY THAT IS WHOLLY  EXEMPTED
FROM TAXATION FOR SCHOOL PURPOSES;
  (C) TO AN INDIVIDUAL WHO IS NOT A RESIDENT INDIVIDUAL OF THE STATE FOR
THE ENTIRE TAXABLE YEAR;
  (D)  IF  THE  QUALIFIED  TAXPAYER CLAIMS THE REAL PROPERTY TAX CIRCUIT
BREAKER CREDIT, PURSUANT TO SUBSECTION (E)  OF  THIS  SECTION,  FOR  THE
TAXABLE YEAR; AND
  (E) IF THE RESIDENTIAL REAL PROPERTY IS EXCLUDED FROM RECEIVING A STAR
EXEMPTION  UNDER  SUBDIVISION FOUR-A OF SECTION FOUR HUNDRED TWENTY-FIVE
OF THE REAL PROPERTY TAX LAW.
  6. PARAGRAPHS FOUR, FIVE, SIX, EIGHT, NINE, TEN, ELEVEN, TWELVE, THIR-
TEEN AND FOURTEEN OF SUBSECTION (E) OF THIS SECTION SHALL ALSO APPLY  TO
THIS SUBSECTION.

S. 6610                            54                            A. 9710

  S 3. The state finance law is amended by adding a new section 92-gg to
read as follows:
  S 92-GG. PROPERTY TAX CIRCUIT BREAKER RESERVE FUND.  1. THERE IS HERE-
BY  ESTABLISHED  IN THE JOINT CUSTODY OF THE COMPTROLLER AND THE COMMIS-
SIONER OF TAXATION AND FINANCE A FUND TO BE KNOWN AS THE  "PROPERTY  TAX
CIRCUIT  BREAKER  RESERVE  FUND".  SUCH  FUND  SHALL  BE ESTABLISHED AND
ACCOUNTED FOR BY THE COMPTROLLER WITHIN THE GENERAL FUND.
  2. AT THE BEGINNING OF EACH FISCAL YEAR, THE DIRECTOR  OF  THE  BUDGET
AND  THE COMMISSIONER OF TAXATION AND FINANCE SHALL DETERMINE THE AMOUNT
OF CASH SURPLUS REMAINING IN THE  GENERAL  FUND  AT  THE  CLOSE  OF  THE
PRECEDING YEAR, AFTER DEPOSITS TO THE TAX STABILIZATION RESERVE FUND AND
RAINY  DAY RESERVE FUND. SUCH REMAINING AMOUNT SHALL BE TRANSFERRED INTO
THE PROPERTY TAX CIRCUIT BREAKER RESERVE FUND.
  3. SUCH FUND SHALL ALSO CONSIST OF ALL MONEYS TRANSFERRED OR  CREDITED
THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW.
  4. MONEYS DEPOSITED IN SUCH FUND SHALL BE USED ONLY TO OFFSET THE COST
OF  THE  TAX CREDITS PURSUANT TO SUBSECTION (E-2) OF SECTION SIX HUNDRED
SIX OF THE TAX LAW. AT THE REQUEST OF THE DIRECTOR OF  THE  BUDGET,  THE
COMPTROLLER SHALL TRANSFER FROM THE PROPERTY TAX CIRCUIT BREAKER RESERVE
FUND  TO  THE GENERAL FUND AN AMOUNT EQUAL TO THE ESTIMATED REDUCTION OF
RECEIPTS RELATED TO THE TAX CREDIT. SUCH TRANSFERS SHALL OCCUR  PURSUANT
TO  A  SCHEDULE  PREPARED  BY THE DIRECTOR OF THE BUDGET IN CONSULTATION
WITH THE COMMISSIONER OF TAXATION AND FINANCE.
  5. MONEYS IN THE PROPERTY TAX CIRCUIT  BREAKER  RESERVE  FUND  MAY  BE
TEMPORARILY  LOANED TO THE GENERAL FUND DURING ANY FISCAL YEAR IN ANTIC-
IPATION OF THE RECEIPT OF REVENUES FROM TAXES, FEES  AND  OTHER  SOURCES
REQUIRED  TO  BE  PAID  INTO  THE  GENERAL FUND DURING SUCH FISCAL YEAR.
MONEYS SO TEMPORARILY LOANED SHALL BE REPAID IN  CASH  DURING  THE  SAME
FISCAL  YEAR  FROM  REVENUES  RECEIVED  FROM  SUCH TAXES, FEES AND OTHER
SOURCES AS SUCH REVENUES ARE RECEIVED, TO THE EXTENT THAT SUCH  REVENUES
ARE  NOT NECESSARY FOR CURRENT EXPENDITURES REQUIRED TO BE MADE FROM THE
GENERAL FUND. TEMPORARY LOANS PURSUANT  TO  THIS  SUBDIVISION  SHALL  BE
WITHOUT INTEREST.
  S 4. Subdivision 2 of section 92-cc of the state finance law, as added
by chapter 1 of the laws of 2007, is amended to read as follows:
  2.  Such  fund  shall have a maximum balance not to exceed [three] TEN
per centum of the aggregate amount projected to be  disbursed  from  the
general  fund during the fiscal year immediately following the then-cur-
rent fiscal year.
  S 5. The state finance law is amended by adding a new  article  17  to
read as follows:
                               ARTICLE 17
                     ANNUAL SPENDING GROWTH CAP ACT
SECTION 244. DEFINITIONS.
         245. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP.
         246. PROVISIONS REGARDING DECLARATION OF EMERGENCY.
  S 244. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS, UNLESS OTHERWISE SPECIFIED:
  1.  "ANNUAL SPENDING GROWTH CAP" SHALL MEAN A PERCENTAGE DETERMINED BY
ADDING THE INFLATION RATES FROM EACH OF THE THREE CALENDAR  YEARS  IMME-
DIATELY PRIOR TO THE COMMENCEMENT OF A GIVEN FISCAL YEAR AND THEN DIVID-
ING THAT SUM BY THREE.
  2. "STATE OPERATING FUNDS SPENDING" SHALL MEAN ANNUAL DISBURSEMENTS OF
ALL GOVERNMENTAL FUND TYPES INCLUDED IN THE CASH-BASIS FINANCIAL PLAN OF
THE  STATE,  EXCLUDING  DISBURSEMENTS  FROM  FEDERAL  FUNDS  AND CAPITAL
PROJECT FUNDS.

S. 6610                            55                            A. 9710

  3.  "INFLATION  RATE"  SHALL  MEAN  THE  PERCENTAGE  CHANGE   IN   THE
TWELVE-MONTH AVERAGE OF THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS
AS  PUBLISHED  BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR
STATISTICS OR ANY  SUCCESSOR  AGENCY  FOR  A  GIVEN  CALENDAR  YEAR,  AS
COMPARED TO THE PRIOR CALENDAR YEAR.
  4.  "EXECUTIVE BUDGET" SHALL MEAN THE BUDGET SUBMITTED ANNUALLY BY THE
GOVERNOR PURSUANT TO SECTION ONE OF ARTICLE VII OF THE  STATE  CONSTITU-
TION.
  5.  "STATE  BUDGET AS ENACTED" SHALL MEAN THE BUDGET ACTED UPON BY THE
LEGISLATURE IN A GIVEN FISCAL YEAR, AS SUBJECT TO SECTION FOUR OF  ARTI-
CLE VII OF THE STATE CONSTITUTION AND SECTION SEVEN OF ARTICLE IV OF THE
STATE CONSTITUTION.
  6.  "EMERGENCY" SHALL MEAN AN EXTRAORDINARY, UNFORESEEN, OR UNEXPECTED
OCCURRENCE, OR COMBINATION OF CIRCUMSTANCES, INCLUDING BUT  NOT  LIMITED
TO A NATURAL DISASTER, INVASION, TERRORIST ATTACK, OR ECONOMIC CALAMITY.
  S 245. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP.  1. THERE IS HERE-
BY ESTABLISHED AN ANNUAL SPENDING GROWTH CAP.
  2. THE GOVERNOR SHALL NOT SUBMIT, AND THE LEGISLATURE SHALL NOT ENACT,
ANY BUDGET THAT CONTAINS AN ESTIMATED PERCENTAGE INCREASE OVER THE PRIOR
FISCAL  YEAR  IN STATE OPERATING FUNDS SPENDING WHICH EXCEEDS THE ANNUAL
SPENDING GROWTH CAP.
  3. THE GOVERNOR SHALL CERTIFY IN WRITING THAT ESTIMATED STATE  OPERAT-
ING  FUNDS  SPENDING  IN THE EXECUTIVE BUDGET DOES NOT EXCEED THE ANNUAL
SPENDING GROWTH CAP. IF FINAL INFLATION RATE DATA FOR THE PRIOR CALENDAR
YEAR IS NOT YET AVAILABLE AT THE TIME THE GOVERNOR SUBMITS  HIS  OR  HER
EXECUTIVE  BUDGET, HE OR SHE SHALL FURNISH A REASONABLE ESTIMATE OF SUCH
PRIOR CALENDAR YEAR INFLATION RATE.
  4. THE DIRECTOR OF THE BUDGET SHALL PROVIDE, WITHIN TEN DAYS OF ACTION
BY THE LEGISLATURE UPON THE BUDGET, A DETERMINATION AS TO WHETHER  ESTI-
MATED STATE OPERATING FUNDS SPENDING AS SET FORTH IN THE STATE BUDGET AS
ENACTED EXCEEDS THE ANNUAL SPENDING GROWTH CAP.
  5.  IF  THE  DIRECTOR  OF  THE BUDGET FINDS THAT STATE OPERATING FUNDS
SPENDING AS SET FORTH IN THE STATE BUDGET AS ENACTED EXCEEDS THE  ANNUAL
SPENDING GROWTH CAP, THE GOVERNOR SHALL TAKE CORRECTIVE ACTION TO ENSURE
THAT FUNDING IS LIMITED TO THE AMOUNT OF THE ANNUAL SPENDING CAP.
  S 246. PROVISIONS REGARDING DECLARATION OF EMERGENCY.  1. UPON A FIND-
ING  OF AN EMERGENCY BY THE GOVERNOR, HE OR SHE MAY DECLARE AN EMERGENCY
BY AN EXECUTIVE ORDER WHICH SHALL SET FORTH THE REASONS FOR SUCH  DECLA-
RATION.
  2.  BASED  UPON  SUCH  DECLARATION,  THE  GOVERNOR MAY SUBMIT, AND THE
LEGISLATURE MAY APPROVE BY AN AFFIRMATIVE  VOTE  OF  TWO-THIRDS  OF  THE
MEMBERS ELECTED TO EACH HOUSE, A BUDGET CONTAINING A PERCENTAGE INCREASE
OVER  THE  PRIOR  FISCAL  YEAR  IN  STATE  OPERATING FUNDS SPENDING THAT
EXCEEDS THE ANNUAL SPENDING GROWTH CAP.
  S 6. This act shall take effect immediately; provided,  however,  that
section  two  of this act shall apply to tax years beginning on or after
January 1, 2011 and further provided that section five of this act shall
expire April 1, 2014 when upon such date the provisions of such  section
shall be deemed repealed.

                                 PART R

  Section  1.  Section  2  of  the  tax law is amended by adding two new
subdivisions 12 and 13 to read as follows:

S. 6610                            56                            A. 9710

  12. AS USED IN THIS CHAPTER, A "STATE RECOGNIZED MARRIAGE" SHALL  MEAN
A  MARRIAGE  RECOGNIZED  BY  NEW  YORK  STATE  LAW, INCLUDING A MARRIAGE
OUTSIDE THE STATE RECOGNIZED UNDER PRINCIPLES OF COMITY.
  13.  AS  USED IN THIS CHAPTER, "MARRIED," "SPOUSE," "HUSBAND," "WIFE,"
"WIDOW," AND OTHER SIMILAR TERMS ENCOMPASS ANY INDIVIDUALS  IN  A  STATE
RECOGNIZED   MARRIAGE,   NOTWITHSTANDING  THE  TREATMENT  AFFORDED  SUCH
MARRIAGE UNDER THE LAWS OF THE UNITED STATES.
  S 2. The tax law is amended by adding a new  section  31  to  read  as
follows:
  S  31.  TREATMENT OF INDIVIDUALS IN ANY STATE RECOGNIZED MARRIAGE. (A)
FOR PURPOSES OF  THIS  CHAPTER,  INDIVIDUALS  IN  ANY  STATE  RECOGNIZED
MARRIAGE  SHALL  BE  TREATED  AS MARRIED, AND THEIR STATUS AS "HUSBAND,"
"WIFE," "SPOUSE," "WIDOW"  OR  OTHER  SIMILAR  TERM  INDICATING  MARITAL
STATUS AS USED IN THIS CHAPTER SHALL BE THAT OF SIMILARLY-SITUATED INDI-
VIDUALS  IN  ANY  OTHER  MARRIAGE RECOGNIZED UNDER FEDERAL AND STATE TAX
LAW, NOTWITHSTANDING THE TREATMENT AFFORDED SUCH INDIVIDUALS  UNDER  THE
LAWS OF THE UNITED STATES.
  (B) TAX LIABILITY UNDER ARTICLES TWENTY-TWO, TWENTY-SIX, TWENTY-SIX-B,
THIRTY, THIRTY-A, AND THIRTY-B OF THIS CHAPTER SHALL BE COMPUTED FOR ANY
STATE RECOGNIZED MARRIAGE IN THE SAME WAY LIABILITY WOULD BE COMPUTED IN
ANY OTHER MARRIAGE RECOGNIZED UNDER FEDERAL AND STATE TAX LAW.
  S 3. Subsection (b) of section 607 of the tax law, as amended by chap-
ter 760 of the laws of 1992, is amended to read as follows:
  (b)  Marital  or other status. An individual's marital or other status
under section six hundred one, subsection (b) of section six hundred six
and section six hundred fourteen shall be the same as his OR HER marital
or other status for purposes  of  establishing  the  applicable  federal
income tax rates; PROVIDED HOWEVER, THAT INDIVIDUALS IN ANY STATE RECOG-
NIZED  MARRIAGE  SHALL  BE  TREATED AS MARRIED AND AS "HUSBAND," "WIFE,"
"SPOUSE," "WIDOW" OR OTHER SIMILAR TERM USED IN THIS ARTICLE TO INDICATE
MARITAL STATUS TO THE SAME EXTENT AND IN THE SAME WAY AS ARE INDIVIDUALS
IN ANY OTHER LEGALLY PERFORMED MARRIAGE. IN APPLYING RELEVANT PROVISIONS
OF THE LAWS OF THE UNITED STATES TO THIS ARTICLE, THE  TERMS  "MARRIED,"
"HUSBAND,"  "WIFE,"  "SPOUSE,"  "WIDOW" OR OTHER SIMILAR TERM INDICATING
MARITAL STATUS AS USED IN THIS ARTICLE SHALL INCLUDE  ANY  STATE  RECOG-
NIZED  MARRIAGE, NOTWITHSTANDING THE TREATMENT AFFORDED SUCH INDIVIDUALS
UNDER THE LAWS OF THE UNITED STATES.
  S 4. Subsection (b) of section 651 of the tax law is amended by adding
a new paragraph 8 to read as follows:
  (8) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, AN INDIVIDUAL
IN A STATE RECOGNIZED MARRIAGE NOT RECOGNIZED BY FEDERAL LAW SHALL  FILE
A  STATE RETURN USING THE SAME FILING STATUS THAT WOULD HAVE BEEN AVAIL-
ABLE HAD SUCH MARRIAGE BEEN RECOGNIZED BY FEDERAL LAW.
  S 5. Subsection (a) of section 951 of  the  tax  law,  as  amended  by
section  1  of  part A of chapter 407 of the laws of 1999, is amended to
read as follows:
  (a) Dates. For purposes of this article, any reference to the internal
revenue code means the United States Internal Revenue Code of 1986, with
all amendments enacted on or before July twenty-second, nineteen hundred
ninety-eight, and, unless specifically provided otherwise in this  arti-
cle,  any  reference to December thirty-first, nineteen hundred seventy-
six or January first, nineteen hundred seventy-seven  contained  in  the
provisions of such code which are applicable to the determination of the
tax imposed by this article shall be read as a reference to June thirti-
eth,  nineteen  hundred  seventy-eight  or  July first, nineteen hundred
seventy-eight, respectively. Notwithstanding the foregoing, the  unified

S. 6610                            57                            A. 9710

credit  against  the  estate tax provided in section two thousand ten of
the internal revenue code shall, for purposes of this  article,  be  the
amount  allowed  by  such  section  under  the applicable federal law in
effect on the decedent's date of death. Provided, however, the amount of
such  credit allowable for purposes of this article shall not exceed the
amount allowable as if the federal unified credit did not exceed the tax
due under section two thousand one of the internal  revenue  code  on  a
federal  taxable  estate of one million dollars.  PROVIDED, FURTHER, ANY
ELECTION TO TAKE A QUALIFIED TERMINABLE INTEREST PROPERTY DEDUCTION MADE
ON THE RETURN FILED UNDER THIS  ARTICLE  SHALL  BE  TREATED  AS  IF  THE
ELECTION HAD BEEN MADE ON THE FEDERAL ESTATE TAX RETURN.
  S  6. Section 1-112 of the administrative code of the city of New York
is amended by adding a new subdivision 22 to read as follows:
  22. FOR PURPOSES OF CHAPTER SEVENTEEN OF TITLE ELEVEN  OF  THIS  CODE,
"MARRIED," "SPOUSE," "HUSBAND," "WIFE," "WIDOW," AND OTHER SIMILAR TERMS
ENCOMPASS  ANY  STATE  RECOGNIZED MARRIAGE NOTWITHSTANDING THE TREATMENT
AFFORDED SUCH INDIVIDUALS UNDER THE LAWS OF THE UNITED STATES.
  S 7. Subdivision (b) of section 11-1707 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:
  (b) Marital or other status. An individual's marital or  other  status
under  section  11-1701  and section 11-1714 shall be the same as his OR
HER marital or other status for purposes of establishing the  applicable
federal  income  tax  rates;  PROVIDED  HOWEVER, THAT INDIVIDUALS IN ANY
STATE RECOGNIZED MARRIAGE SHALL BE TREATED AS MARRIED AND AS  "HUSBAND,"
"WIFE,"  "SPOUSE,"  "WIDOW"  OR  OTHER  SIMILAR  TERM INDICATING MARITAL
STATUS AS USED IN THIS CHAPTER TO THE SAME EXTENT AND IN THE SAME WAY AS
IN ANY OTHER MARRIAGE RECOGNIZED UNDER FEDERAL AND STATE TAX  LAW.    IN
APPLYING  RELEVANT  PROVISIONS  OF THE LAWS OF THE UNITED STATES TO THIS
CHAPTER, THE TERMS "MARRIED," "HUSBAND," "WIFE," "SPOUSE,"  "WIDOW"  AND
OTHER  SIMILAR  TERMS  INDICATING MARITAL STATUS AS USED IN THIS CHAPTER
SHALL INCLUDE INDIVIDUALS IN ANY  STATE  RECOGNIZED  MARRIAGE,  NOTWITH-
STANDING  THE  TREATMENT AFFORDED SUCH INDIVIDUALS UNDER THE LAWS OF THE
UNITED STATES.
  S 8. This act shall take effect immediately;  provided  however,  that
sections  three,  four, six and seven of this act shall apply to taxable
years beginning on or after January 1, 2010.

                                 PART S

  Section 1. Clause (I) of subparagraph (i) of paragraph 8  of  subdivi-
sion  (b)  of section 1101 of the tax law, as added by section 1 of part
P-1 of chapter 57 of the laws of 2009, is amended to read as follows:
  (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
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.
NOTWITHSTANDING THE PROVISIONS OF THIS CLAUSE,  THE  ACTIVITIES  IN  THE

S. 6610                            58                            A. 9710

STATE  OF AN AFFILIATED PERSON IN PROVIDING ACCOUNTING OR LEGAL SERVICES
OR ADVICE, OR IN DIRECTING THE ACTIVITIES OF A  SELLER,  INCLUDING,  BUT
NOT  LIMITED  TO,  MAKING  DECISIONS  ABOUT  (A) STRATEGIC PLANNING, (B)
MARKETING,  (C)  INVENTORY,  (D) STAFFING, (E) DISTRIBUTION, OR (F) CASH
MANAGEMENT, WILL NOT RESULT IN MAKING THE SELLER  A  VENDOR  UNDER  THIS
PARAGRAPH.
  S  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after June 1, 2009  and  shall
apply  to  sales made or uses occurring on or after such date in accord-
ance with the applicable transitional provisions of  sections  1106  and
1217 of the tax law.

                                 PART T

  Section  1.  This  act  shall  be  known and may be cited as the "wine
industry and liquor store revitalization act".
  S 2. Subdivisions 4 and 5 of section  63  of  the  alcoholic  beverage
control  law,  subdivision  4  as  amended by chapter 603 of the laws of
1992, are amended and three new subdivisions 7, 8 and  9  are  added  to
read as follows:
  4.  (A)  No  licensee under this section shall be engaged in any other
business on the licensed premises. The SALE OF PRODUCTS COMPLEMENTARY TO
THE BUSINESS OF THE LICENSED PREMISES SHALL NOT CONSTITUTE  ENGAGING  IN
ANOTHER  BUSINESS  WITHIN THE MEANING OF THIS SUBDIVISION. SUCH PRODUCTS
SHALL INCLUDE BUT NOT BE LIMITED TO THE sale of  lottery  tickets,  when
duly  authorized  and  lawfully conducted, the sale of corkscrews or the
sale of ice or the sale of  publications,  including  prerecorded  video
and/or audio cassette tapes, designed to help educate consumers in their
knowledge  and  appreciation  of  wine  and wine products, as defined in
section three of this chapter, or the sale of [non-carbonated,  non-fla-
vored  mineral  waters, spring waters and drinking waters or the sale of
glasses designed for the consumption of  wine]  BOTTLED  WATER,  MIXERS,
JUICE  AND  SODA,  OR  THE SALE OF CIGARS, CIGAR ACCESSORIES AND RELATED
PUBLICATIONS DESIGNED TO HELP EDUCATE CONSUMERS IN THEIR  KNOWLEDGE  AND
APPRECIATION  OF  CIGAR  PRODUCTS, LIGHTERS, NEWSPAPERS OR FOOD AND FOOD
PRODUCTS TYPICALLY CONSUMED WITH ALCOHOLIC BEVERAGES, INCLUDING BUT  NOT
LIMITED TO SNACK FOODS AND GOURMET FOODS SUCH AS LOCALLY PRODUCED CHEES-
ES  AND  FRESH  BREADS, GIFTS, GIFT BAGS AND GIFT BASKETS, GLASSWARE AND
DECANTERS RELATED TO THE CONSUMPTION OR STORAGE OF WINE  AND/OR  LIQUOR,
racks designed for the storage of wine, and devices designed to minimize
oxidation  in  bottles  of  wine  which  have  been uncorked[, shall not
constitute engaging in another  business  within  the  meaning  of  this
subdivision].
  (B)  THE INSTALLATION AND OPERATION OF AUTOMATED TELLER MACHINES SHALL
NOT CONSTITUTE ENGAGING IN ANOTHER BUSINESS WITHIN THE MEANING  OF  THIS
SUBDIVISION.   FOR  PURPOSES  OF  THIS  SUBDIVISION,  "AUTOMATED  TELLER
MACHINE" MEANS A DEVICE WHICH IS LINKED TO THE ACCOUNTS AND RECORDS OF A
BANKING INSTITUTION AND WHICH ENABLES CONSUMERS  TO  CARRY  OUT  BANKING
TRANSACTIONS,  INCLUDING,  BUT NOT LIMITED TO, ACCOUNT TRANSFERS, DEPOS-
ITS, CASH WITHDRAWALS, BALANCE INQUIRIES, AND LOAN PAYMENTS.
  5. [Not more than one license shall be] NOTHING IN THIS SECTION  SHALL
BE  CONSTRUED  TO  PROHIBIT  MULTIPLE LICENSES FROM BEING granted to any
person under this section.
  7.  ANY LICENSE UNDER THIS SECTION INCLUDES  THE  PRIVILEGES  TO  SELL
LIQUOR  TO  ANY  PERSON  LICENSED  UNDER  THIS CHAPTER TO SELL LIQUOR AT
RETAIL FOR CONSUMPTION ON THE PREMISES AND WINE TO ANY  PERSON  LICENSED

S. 6610                            59                            A. 9710

UNDER  THIS  CHAPTER TO SELL WINE AT RETAIL FOR CONSUMPTION ON THE PREM-
ISES. SUCH SALES SHALL NOT BE SUBJECT TO THE PROVISIONS OF  SECTION  ONE
HUNDRED ONE-AA OR SECTION ONE HUNDRED ONE-B OF THIS CHAPTER.
  8.    EVERY  LICENSEE UNDER THIS SECTION SHALL HAVE AN INDIVIDUAL IN A
POSITION OF MANAGEMENT AND CONTROL ASSIGNED TO IT WHO HAS BEEN ISSUED  A
CERTIFICATE  OF  COMPLETION  FROM AN APPROVED ALCOHOL TRAINING AWARENESS
PROGRAM.
  9. (A) EXCEPT AS PROVIDED  IN  THIS  SUBDIVISION,  COMMENCING  ON  THE
EFFECTIVE  DATE  OF  THIS  SUBDIVISION  NO  ADDITIONAL LICENSES SHALL BE
ISSUED PURSUANT TO THIS SECTION.
  (B) THE PROVISIONS OF THIS SUBDIVISION SHALL  NOT  APPLY  TO  (I)  THE
RENEWAL,  TRANSFER OR CONTINUANCE OF A LICENSE PURSUANT TO THIS CHAPTER;
(II) AN APPLICATION FOR A LICENSE FILED BEFORE  THE  EFFECTIVE  DATE  OF
THIS SUBDIVISION; (III) THE ISSUANCE OF A LICENSE IN ACCORDANCE WITH THE
PROVISIONS OF PARAGRAPH (C) OF THIS SUBDIVISION.
  (C)  EACH  PERSON HOLDING A LICENSE ISSUED UNDER THIS SECTION PRIOR TO
THE EFFECTIVE DATE OF THIS SUBDIVISION SHALL HAVE THE RIGHT TO APPLY FOR
ONE ADDITIONAL LICENSE UNDER THIS SECTION. THIS RIGHT MAY  BE  EXERCISED
BY  THE EXISTING LICENSEE OR SOLD BY THE LICENSEE TO ANOTHER PARTY. SUCH
A SALE SHALL BE SUBJECT TO SALES AND COMPENSATING USE TAX AS IMPOSED  BY
SECTION  ELEVEN  HUNDRED  FIVE  OF THE TAX LAW. THE PARTY EXERCISING THE
RIGHT TO APPLY FOR THE LICENSE MUST FILE AN APPLICATION WITH THE AUTHOR-
ITY AND MEET ALL APPLICABLE RESTRICTIONS AND REQUIREMENTS.
  (D) THE AUTHORITY MAY SELL, BY AUCTION, THE RIGHT  TO  APPLY  FOR  ANY
LICENSE ISSUED UNDER THIS SECTION WHICH IS CANCELED OR REVOKED. PRIOR TO
THE  ISSUANCE  OF ANY LICENSE, THE PERSON BUYING SUCH RIGHT MUST FILE AN
APPLICATION WITH THE AUTHORITY AND MEET ALL APPLICABLE RESTRICTIONS  AND
REQUIREMENTS.  THE  AMOUNT  OF  THE  SALE  SHALL BE SUBJECT TO SALES AND
COMPENSATING USE TAX AS IMPOSED BY SECTION ELEVEN HUNDRED  FIVE  OF  THE
TAX LAW.
  (E)  THE AUTHORITY MAY PROMULGATE SUCH RULES AND REGULATIONS AS MAY BE
NECESSARY TO CARRY OUT THE PROVISIONS OF THIS SUBDIVISION.
  S 3. Subdivision 2 of section 79 of the alcoholic beverage control law
is amended and three new subdivisions 5, 6 and 7 are added  to  read  as
follows:
  2.  [Not more than one license shall be] NOTHING IN THIS SECTION SHALL
BE CONSTRUED TO PROHIBIT MULTIPLE LICENSES FROM  BEING  granted  to  any
person under this section.
  5.    ANY  LICENSE  UNDER THIS SECTION INCLUDES THE PRIVILEGES TO SELL
WINE TO ANY PERSON LICENSED UNDER THIS CHAPTER TO SELL  WINE  AT  RETAIL
FOR  CONSUMPTION  ON  THE  PREMISES OR ANY PERSON LICENSED UNDER SECTION
SEVENTY-NINE-E OF THIS ARTICLE, PROVIDED THAT SUCH GROCERY OR DRUG STORE
WINE LICENSEE'S PREMISES OCCUPIES LESS THAN ONE  THOUSAND  SQUARE  FEET.
SUCH SALES SHALL NOT BE SUBJECT TO THE PROVISIONS OF SECTION ONE HUNDRED
ONE-AA OR SECTION ONE HUNDRED ONE-B OF THIS CHAPTER.
  6.  EVERY  LICENSEE  UNDER  THIS SECTION SHALL HAVE AN INDIVIDUAL IN A
POSITION OF MANAGEMENT AND CONTROL ASSIGNED TO IT WHO HAS BEEN ISSUED  A
CERTIFICATE  OF  COMPLETION  FROM AN APPROVED ALCOHOL TRAINING AWARENESS
PROGRAM.
  7. (A) EXCEPT AS PROVIDED FOR IN THIS SUBDIVISION, COMMENCING  ON  THE
EFFECTIVE  DATE  OF  THIS  SUBDIVISION,  NO ADDITIONAL LICENSES SHALL BE
ISSUED PURSUANT TO THIS SECTION.
  (B) THE PROVISIONS OF THIS SUBDIVISION SHALL  NOT  APPLY  TO  (I)  THE
RENEWAL,  TRANSFER OR CONTINUANCE OF A LICENSE PURSUANT TO THIS CHAPTER;
(II) AN APPLICATION FOR A LICENSE FILED BEFORE  THE  EFFECTIVE  DATE  OF

S. 6610                            60                            A. 9710

THIS SUBDIVISION; (III) THE ISSUANCE OF A LICENSE IN ACCORDANCE WITH THE
PROVISIONS OF PARAGRAPH (C) OF THIS SUBDIVISION.
  (C)  EACH  PERSON HOLDING A LICENSE ISSUED UNDER THIS SECTION PRIOR TO
THE EFFECTIVE DATE OF THIS SUBDIVISION SHALL HAVE THE RIGHT TO APPLY FOR
ONE ADDITIONAL LICENSE UNDER THIS SECTION. THIS RIGHT MAY  BE  EXERCISED
BY  THE EXISTING LICENSEE OR SOLD BY THE LICENSEE TO ANOTHER PARTY. SUCH
A SALE SHALL BE SUBJECT TO SALES AND COMPENSATING USE TAX AS IMPOSED  BY
SECTION  ELEVEN  HUNDRED  FIVE OF THE TAX LAW.  THE PARTY EXERCISING THE
RIGHT TO APPLY FOR THE LICENSE MUST FILE AN APPLICATION WITH THE AUTHOR-
ITY AND MEET ALL APPLICABLE RESTRICTIONS AND REQUIREMENTS.
  (D) THE AUTHORITY MAY SELL, BY AUCTION, THE RIGHT  TO  APPLY  FOR  ANY
LICENSE ISSUED UNDER THIS SECTION WHICH IS CANCELED OR REVOKED. PRIOR TO
THE  ISSUANCE  OF ANY LICENSE, THE PERSON BUYING SUCH RIGHT MUST FILE AN
APPLICATION WITH THE AUTHORITY AND MEET ALL APPLICABLE RESTRICTIONS  AND
REQUIREMENTS.  THE  AMOUNT  OF  THE  SALE  SHALL BE SUBJECT TO SALES AND
COMPENSATING USE TAX AS IMPOSED BY SECTION ELEVEN HUNDRED  FIVE  OF  THE
TAX LAW.
  (E)  THE AUTHORITY MAY PROMULGATE SUCH RULES AND REGULATIONS AS MAY BE
NECESSARY TO CARRY OUT THE PROVISIONS OF THIS SUBDIVISION.
  S 4. Section 83 of the alcoholic beverage control law  is  amended  by
adding a new subdivision 8 to read as follows:
  8. THE ANNUAL FEE FOR A GROCERY OR DRUG STORE WINE LICENSE PURSUANT TO
SECTION  SEVENTY-NINE-E  OF  THIS ARTICLE SHALL BE FIVE HUNDRED DOLLARS.
WHERE, HOWEVER, THE  APPLICANT  IS  THE  HOLDER  OF  TWO  OR  MORE  SUCH
LICENSES, THE ANNUAL FEE FOR EACH ADDITIONAL LICENSE SHALL BE DOUBLE THE
AMOUNT HEREINABOVE SET FORTH. TEN PERCENT OF THE OVERALL FEES PAID UP TO
ONE  MILLION  DOLLARS  SHALL  BE  DEPOSITED TO THE MISCELLANEOUS SPECIAL
REVENUE FUND (339) WINE INDUSTRY MARKETING ACCOUNT FOR APPROPRIATION AND
ALLOCATION TO THE NEW YORK WINE MARKETING  PROGRAM,  AS  ESTABLISHED  IN
SECTION THREE-A OF CHAPTER EIGHTY OF THE LAWS OF NINETEEN HUNDRED EIGHT-
Y-FIVE,  SUCH  SECTION  AS  ADDED BY CHAPTER THREE HUNDRED THIRTY OF THE
LAWS OF TWO THOUSAND FOUR.
  S 4-a. The state finance law  is  amended  by  adding  a  new  section
97-jjjj to read as follows:
  S  97-JJJJ. NEW YORK WINE INDUSTRY MARKETING AND PROMOTION ACCOUNT. 1.
THERE IS HEREBY ESTABLISHED IN THE JOINT  CUSTODY  OF  THE  STATE  COMP-
TROLLER  AND  THE  COMMISSIONER OF TAXATION AND FINANCE AN ACCOUNT TO BE
KNOWN AS THE NEW YORK WINE INDUSTRY MARKETING AND PROMOTION ACCOUNT.
  2. SUCH ACCOUNT SHALL CONSIST OF REVENUES  RECEIVED  FROM  GROCERY  OR
DRUG  STORE  WINE  LICENSE FEES PURSUANT TO SUBDIVISION EIGHT OF SECTION
EIGHTY-THREE OF THE ALCOHOLIC BEVERAGE CONTROL LAW.
  3. MONEYS OF THE ACCOUNT, FOLLOWING APPROPRIATION BY THE  LEGISLATURE,
MAY  BE EXPENDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION THREE-A OF
CHAPTER EIGHTY OF THE LAWS OF NINETEEN HUNDRED EIGHTY-FIVE, AS ADDED  BY
CHAPTER  THREE  HUNDRED  THIRTY OF THE LAWS OF TWO THOUSAND FOUR. MONEYS
SHALL BE PAID OUT OF THE ACCOUNT ON THE AUDIT AND WARRANT OF  THE  STATE
COMPTROLLER  ON  VOUCHERS  CERTIFIED  OR APPROVED BY THE COMMISSIONER OF
AGRICULTURE AND MARKETS.
  S 5. Subdivision 2-a of section 100 of the alcoholic beverage  control
law,  as  amended by chapter 249 of the laws of 2002, is amended to read
as follows:
  2-a. No retailer shall employ, or permit  to  be  employed,  or  shall
suffer  to work, on any premises licensed for retail sale hereunder, any
person under the age of eighteen years, as a hostess, waitress,  waiter,
or  in  any  other  capacity  where the duties of such person require or
permit such person to sell,  dispense  or  handle  alcoholic  beverages;

S. 6610                            61                            A. 9710

except that: (1) any person under the age of eighteen years and employed
by  any  person  holding  a  grocery or drug store beer license shall be
permitted to handle and deliver beer and wine products for  such  licen-
see, (2) any person under the age of eighteen employed as a cashier by a
person  holding  a grocery or drug store beer license shall be permitted
to record and receive payment for beer and wine product  sales  when  in
the  presence  of  and under the direct supervision of a person eighteen
years of age or over, (2-a) any person under the age of  eighteen  years
and  employed  by  a  person  holding a grocery store or drug store beer
license as either a cashier or in any other position to  which  handling
of  containers  which  may  have  held alcoholic beverages is necessary,
shall be permitted to handle the containers if such have been  presented
for redemption in accordance with the provisions of title ten of article
twenty-seven of the environmental conservation law, [and] (3) any person
under  the  age  of  eighteen years employed as a dishwasher, busboy, or
other such position as to which handling of containers  which  may  have
held  alcoholic beverages is necessary shall be permitted to do so under
the direct supervision of a person of legal age  to  purchase  alcoholic
beverages  in  the state, (4) ANY PERSON UNDER THE AGE OF EIGHTEEN YEARS
AND EMPLOYED BY A PERSON HOLDING A GROCERY OR DRUG  STORE  WINE  LICENSE
SHALL BE PERMITTED TO HANDLE AND DELIVER WINE FOR SUCH LICENSEE, AND (5)
ANY  PERSON  UNDER  THE  AGE  OF EIGHTEEN YEARS AND EMPLOYED BY A PERSON
HOLDING A GROCERY OR DRUG STORE  WINE  LICENSE  SHALL  BE  PERMITTED  TO
RECORD  AND  RECEIVE  PAYMENT FOR WINE SALES WHEN IN THE PRESENCE OF AND
UNDER THE DIRECT SUPERVISION OF A PERSON EIGHTEEN YEARS OR OVER.
  S 6. Section 17 of the alcoholic beverage control law  is  amended  by
adding a new subdivision 8-b to read as follows:
  8-B.  ON  AND  AFTER  JANUARY  FIRST,  TWO THOUSAND ELEVEN, THE REPORT
PROVIDED FOR IN SUBDIVISION EIGHT OF THIS SECTION SHALL INCLUDE INFORMA-
TION RELATED TO THE NUMBER OF LICENSES APPLIED FOR, RENEWALS SOUGHT  AND
THE  LENGTH  OF  TIME REQUIRED FOR THE APPROVAL OR DENIAL OF SUCH RETAIL
LICENSES AND RENEWALS APPLIED  FOR  PURSUANT  TO  SUBDIVISION  TWO-C  OF
SECTION  SIXTY-ONE,  SECTIONS  SIXTY-FOUR,  SEVENTY-SIX,  SEVENTY-SIX-A,
SEVENTY-SIX-C, SEVENTY-SIX-D AND SEVENTY-SIX-F OF THIS CHAPTER.
  S 7. Paragraphs (a) and (b) of subdivision 14 of section  105  of  the
alcoholic beverage control law, paragraph (a) as amended by section 1 of
part U of chapter 63 of the laws of 2003 and paragraph (b) as amended by
chapter 334 of the laws of 2004, are amended to read as follows:
  (a)  No  premises licensed to sell liquor and/or wine for off-premises
consumption shall be permitted to [remain open] SELL LIQUOR AND/OR WINE:
  (i) On Sunday before twelve  o'clock  post  meridian  and  after  nine
o'clock post meridian.
  (ii) On any day between midnight and eight o'clock antemeridian.
  (iii) On the twenty-fifth day of December, known as Christmas day.
  In  any  community  where daylight saving time is in effect, such time
shall be deemed the standard time for the purpose of this subdivision.
  (b) This subdivision shall only be interpreted to prohibit the sale of
liquor and/or wine for off-premises consumption [when it  is  closed  to
the  public,  provided however, retail licensees may undertake all other
activities allowed during the course of normal business  operations].  A
LICENSEE  MAY  ENGAGE  IN  ANY  OTHER  LAWFUL  ACTIVITY  ALLOWED  ON THE
LICENSEE'S PREMISES, including but not limited to:
  (i) placing orders with or  taking  deliveries  from  wholesalers  AND
MANUFACTURERS;
  (ii) meeting with individuals who have valid solicitors permits issued
by the liquor authority;

S. 6610                            62                            A. 9710

  (iii) stocking shelves;
  (iv) filling or building displays; [and]
  (v) rotating product on store shelves; AND
  (VI)  IN  THE CASE OF PERSONS LICENSED UNDER SECTION SEVENTY-NINE-E OF
THIS CHAPTER, THE SALE  OF  OTHER  PRODUCTS,  INCLUDING  BEER  AND  WINE
PRODUCTS  IF  THE  PERSON  IS  ALSO LICENSED UNDER SECTION FIFTY-FOUR OR
SECTION FIFTY-FOUR-A OF THIS CHAPTER.
  S 8. Section 105 of the alcoholic beverage control law is  amended  by
adding a new subdivision 24 to read as follows:
  24. COOPERATIVE AGREEMENTS BY LICENSEES TO SELL AT RETAIL FOR CONSUMP-
TION  OFF THE PREMISES.  FOR THE PURPOSES OF PURCHASING ONLY, ANY TWO OR
MORE  PERSONS  LICENSED  PURSUANT   TO   SECTIONS   SIXTY-THREE   AND/OR
SEVENTY-NINE  OF  THIS  CHAPTER  MAY  JOIN IN AN AGREEMENT TO MAKE JOINT
PURCHASES OF LIQUOR AND/OR WINE IN LARGER QUANTITIES THAN  MIGHT  OTHER-
WISE  BE PURCHASED; PROVIDED, HOWEVER, THAT ALL SUCH ALCOHOLIC BEVERAGES
PURCHASED PURSUANT TO ANY SUCH AGREEMENT SHALL BE  DISTRIBUTED  TO  NONE
OTHER  THAN A LICENSEE WHO IS A PARTY TO SUCH AGREEMENT. THE COOPERATIVE
AGREEMENTS, AS AUTHORIZED UNDER THIS  SUBDIVISION,  SHALL  BE  VOID  IF,
WITHIN  A  CITY  WITH  A POPULATION OF ONE MILLION OR MORE, THE PREMISES
OPERATING UNDER THE COOPERATIVE AGREEMENTS AUTHORIZED IN  THIS  SUBDIVI-
SION  ARE  LOCATED  MORE THAN ONE MILE FROM ONE ANOTHER. THE COOPERATIVE
AGREEMENTS, AS AUTHORIZED UNDER THIS  SUBDIVISION,  SHALL  BE  VOID  IF,
OUTSIDE OF A CITY WITH A POPULATION OF ONE MILLION OR MORE, THE PREMISES
OPERATING  UNDER  AGREEMENTS  AUTHORIZED IN THIS SUBDIVISION ARE LOCATED
MORE THAN FIFTY MILES FROM ONE ANOTHER.   THE AUTHORITY  MAY  PROMULGATE
SUCH  RULES  AND  REGULATIONS  AS  MAY  BE  NECESSARY  TO  CARRY OUT THE
PROVISIONS OF THIS SUBDIVISION.
  S 9. Subdivision 2 of section 105 of the  alcoholic  beverage  control
law is REPEALED.
  S  10.  Subdivision 7 of section 105 of the alcoholic beverage control
law is REPEALED.
  S 11. The alcoholic beverage control law is amended by  adding  a  new
section 79-e to read as follows:
  S 79-E. GROCERY OR DRUG STORE WINE LICENSE. 1. ANY PERSON MAY APPLY TO
THE  AUTHORITY  FOR A LICENSE TO SELL FROM THE LICENSED PREMISES WINE IN
SEALED CONTAINERS FOR CONSUMPTION OFF SUCH PREMISES.
  2. NO SUCH LICENSE SHALL BE ISSUED, HOWEVER, TO  ANY  PERSON  FOR  ANY
PREMISES  OTHER THAN A GROCERY STORE, AS DEFINED IN SUBDIVISION THIRTEEN
OF SECTION THREE OF THIS CHAPTER, OR A DRUG STORE, AS DEFINED IN  SUBDI-
VISION TWELVE OF SECTION THREE OF THIS CHAPTER.
  3. (A) NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, EXCEPT FOR
GOOD CAUSE SHOWN, THE AUTHORITY SHALL ISSUE A GROCERY OR DRUG STORE WINE
LICENSE  TO  THE HOLDER OF A LICENSE TO SELL BEER AT RETAIL FOR CONSUMP-
TION OFF THE PREMISES PURSUANT TO SECTION FIFTY-FOUR OF THIS CHAPTER, OR
BEER AND WINE PRODUCTS AT RETAIL FOR CONSUMPTION OFF THE PREMISES PURSU-
ANT TO SECTION FIFTY-FOUR-A OF THIS CHAPTER,  AT  THE  REQUEST  OF  SUCH
LICENSEE.
  (B)  FOR THE PURPOSES OF THIS SUBDIVISION, THE PREMISES OF THE GROCERY
OR DRUG STORE WINE LICENSEE SHALL BE THE SAME AS THE  PREMISES  LICENSED
UNDER SECTION FIFTY-FOUR OR FIFTY-FOUR-A OF THIS CHAPTER.
  (C)  NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS CHAPTER, ANY LICENSE
ISSUED PURSUANT TO THIS SECTION SHALL RUN CONCURRENTLY WITH THE UNDERLY-
ING LICENSE UNDER SECTION FIFTY-FOUR OR FIFTY-FOUR-A  OF  THIS  CHAPTER,
AND  SHALL  BE  DEEMED  EXPIRED  AT  SUCH TIME AS THE UNDERLYING LICENSE
EXPIRES.

S. 6610                            63                            A. 9710

  (D) WINE TASTING. ANY PERSON LICENSED TO SELL WINE  PURSUANT  TO  THIS
ARTICLE SHALL BE PERMITTED TO CONDUCT WINE TASTINGS. WINE TASTINGS WHICH
ARE  CONDUCTED UNDER THE AUSPICES OF AN OFFICIAL AGENT OF A FARM WINERY,
WINERY, WHOLESALER, OR IMPORTER AND WHERE SUCH AGENT IS PHYSICALLY PRES-
ENT AT ALL TIMES DURING THE CONDUCT OF THE TASTING, THEN, IN THAT EVENT,
ANY  LIABILITY  STEMMING  FROM  A  RIGHT OF ACTION RESULTING FROM A WINE
TASTING AS AUTHORIZED PURSUANT TO THIS SECTION, AND IN  ACCORDANCE  WITH
THE  PROVISIONS OF SECTIONS 11-100 AND 11-101 OF THE GENERAL OBLIGATIONS
LAW, SHALL ACCRUE TO THE FARM WINERY, WINERY, WHOLESALER, OR IMPORTER.
  4. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE  AUTHORITY
MAY  ISSUE  A  LICENSE  UNDER THIS SECTION TO THE HOLDER OF A LICENSE TO
SELL WINE AT RETAIL FOR CONSUMPTION OFF THE PREMISES PURSUANT TO SECTION
SEVENTY-NINE OF THIS ARTICLE, PROVIDED THAT: (A) THE LICENSEE MEETS  THE
REQUIREMENTS  OF  SUBDIVISION TWO OF THIS SECTION; AND (B) UPON ISSUANCE
OF A LICENSE, THE LICENSEE UNDER THIS  SECTION  SURRENDERS  THE  LICENSE
CERTIFICATE ISSUED PURSUANT TO SUCH SECTION SEVENTY-NINE.
  5.  SUCH  APPLICATION  SHALL  BE  IN  SUCH FORM AND SHALL CONTAIN SUCH
INFORMATION AS SHALL BE REQUIRED BY THE RULES OF THE AUTHORITY AND SHALL
BE ACCOMPANIED BY A CHECK OR DRAFT IN THE AMOUNT REQUIRED BY THIS  ARTI-
CLE FOR SUCH LICENSE.
  6.  NOTWITHSTANDING  ANY  OTHER PROVISIONS OF THIS CHAPTER, ANY PERSON
RECEIVING A LICENSE PURSUANT TO THIS SECTION SHALL NOT BE SUBJECT TO THE
PROVISIONS OF SUBDIVISION TWO, THREE OR FOUR OF SECTION SEVENTY-NINE  OF
THIS ARTICLE.
  7.  NOTWITHSTANDING  ANY  OTHER PROVISIONS OF THIS CHAPTER, ANY PERSON
RECEIVING A LICENSE PURSUANT TO THIS SECTION SHALL NOT BE SUBJECT TO THE
PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION THREE OF SECTION ONE  HUNDRED
FIVE OF THIS CHAPTER.
  8. (A) A ONE-TIME FRANCHISE FEE SHALL BE PAID BY EACH RETAIL OUTLET TO
THE  STATE LIQUOR AUTHORITY. THIS FRANCHISE FEE IS HEREBY IMPOSED PURSU-
ANT TO THE FOLLOWING SCHEDULE PER LOCATION BASED UPON GROSS SALES IN THE
PREVIOUS YEAR:
ANNUAL SALES                  FRANCHISE FEE PER LOCATION
$0-$249,999                   $1,000
$250,000-$999,999             0.40 OF ONE PERCENT OF TOTAL GROSS SALES
$1,000,000-$9,999,999         0.42 OF ONE PERCENT OF TOTAL GROSS SALES
$10,000,000-$39,999,999       0.46 OF ONE PERCENT OF TOTAL GROSS SALES
$40,000,000 AND GREATER       0.48 OF ONE PERCENT OF TOTAL GROSS SALES
WAREHOUSE STORES              0.50 OF ONE PERCENT OF TOTAL GROSS SALES
  FOR THE PURPOSES OF THIS PARAGRAPH,  "TOTAL  GROSS  SALES"  SHALL  NOT
INCLUDE  SALES  RESULTING FROM THE SALE OF TOBACCO AS DEFINED BY ARTICLE
TWENTY OF THE TAX LAW AND MOTOR FUEL AS DEFINED BY ARTICLE  TWELVE-A  OF
THE  TAX  LAW.  FOR  THE PURPOSES OF THIS PARAGRAPH, NOTWITHSTANDING THE
GROSS SALES OF THE APPLICANT, AN ESTABLISHMENT THAT CHARGES A MEMBERSHIP
FEE TO ITS CUSTOMERS SHALL BE DEEMED A "WAREHOUSE STORE".
  (B) IN THE EVENT AN APPLICANT HAS  BEEN  IN  BUSINESS  FOR  LESS  THAN
TWELVE  MONTHS  PRIOR TO THE FILING OF THE APPLICATION FOR THIS LICENSE,
SUCH APPLICANT SHALL, IN ACCORDANCE WITH THE  RULES  OF  THE  AUTHORITY,
REMIT  AN  ESTIMATE  OF  ITS  FRANCHISE FEE BASED ON SQUARE FOOTAGE AT A
LICENSEE'S LOCATION PURSUANT TO THE FOLLOWING SCHEDULE:
SQUARE FOOTAGE LICENSEE'S LOCATION      FRANCHISE FEE PER LOCATION
  0-999                                 $825
  1,000-1,999                           $1,650
  2,000-3,999                           $3,300
  4,000-9,999                           $8,250
  10,000-19,999                         $16,500

S. 6610                            64                            A. 9710

  20,000-24,999                         $33,000
  25,000-29,999                         $82,500
  30,000-39,999                         $132,000
  40,000-79,999                         $250,000
  80,000 AND GREATER                    $350,000
  WITHIN  SIXTY DAYS AFTER SUCH LICENSEE SHALL HAVE BEEN IN BUSINESS FOR
TWELVE MONTHS, SUCH LICENSEE SHALL SUBMIT TO THE AUTHORITY,  IN  ACCORD-
ANCE  WITH  THE  RULES  OF THE AUTHORITY, A STATEMENT SHOWING ITS ACTUAL
TOTAL GROSS SALES FOR THE FIRST TWELVE MONTHS OF OPERATION AND THE FRAN-
CHISE FEE DUE PURSUANT TO PARAGRAPH (A)  OF  THIS  SUBDIVISION.  IN  THE
EVENT  THE  FRANCHISE  FEE DETERMINED PURSUANT TO SUCH PARAGRAPH EXCEEDS
THE AMOUNT PAID PURSUANT TO THIS PARAGRAPH,  THE  LICENSEE  SHALL  REMIT
PAYMENT  FOR  THE  BALANCE  OF  THE  REQUIRED  FRANCHISE FEE WITHIN SUCH
SIXTY-DAY PERIOD. FAILURE TO REMIT PAYMENT WITHIN SUCH SIXTY-DAY  PERIOD
SHALL  BE GROUNDS FOR CANCELLATION OR REVOCATION OF SUCH LICENSE. IN THE
EVENT THAT THE FRANCHISE FEE DUE  PURSUANT  TO  PARAGRAPH  (A)  OF  THIS
SUBDIVISION IS LESS THAN THE AMOUNT PAID PURSUANT TO THIS PARAGRAPH, THE
LICENSEE  SHALL  BE ENTITLED TO A REFUND EQUAL TO THE DIFFERENCE BETWEEN
THE FRANCHISE FEE PAID PURSUANT TO THIS PARAGRAPH  AND  THE  AMOUNT  DUE
PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION.
  (C)  NO  LICENSE  SHALL  BE  ISSUED PURSUANT TO THIS SECTION UNTIL THE
FRANCHISE FEE OR ESTIMATED FRANCHISE FEE UNDER THIS SUBDIVISION REQUIRED
BY EITHER PARAGRAPH (A) OR (B) OF THIS  SUBDIVISION  HAS  BEEN  PAID  IN
FULL.
  (D)  THE  FRANCHISE FEE SHALL BE DEPOSITED AND DISPOSED OF IN THE SAME
MANNER AS ANY LICENSE FEE AS PROVIDED IN SECTION ONE HUNDRED TWENTY-FIVE
OF THIS CHAPTER.
  9. ANY PERSON LICENSED TO SELL WINE  PURSUANT  TO  THIS  ARTICLE  THAT
OPERATES  THE  PREMISES  OF THE GROCERY OR DRUG STORE WINE LICENSEE THAT
OCCUPIES LESS THAN ONE THOUSAND  SQUARE  FEET  MAY  PURCHASE,  AGREE  TO
PURCHASE  OR  RECEIVE  ANY  WINE  FROM  A PERSON LICENSED UNDER SECTIONS
SIXTY-THREE AND SEVENTY-NINE OF THIS CHAPTER.
  10. EVERY LICENSEE UNDER THIS SECTION SHALL HAVE AN  INDIVIDUAL  IN  A
POSITION  OF MANAGEMENT AND CONTROL ASSIGNED TO IT WHO HAS BEEN ISSUED A
CERTIFICATE OF COMPLETION FROM AN APPROVED  ALCOHOL  TRAINING  AWARENESS
PROGRAM.
  11.  NOTWITHSTANDING  SUBDIVISION  EIGHT OF THIS SECTION, NO FRANCHISE
FEE SHALL BE REQUIRED FROM AN APPLICANT WHO IS PURCHASING  THE  BUSINESS
OF  A  LICENSEE WHO HAS ALREADY PAID A FRANCHISE FEE, PROVIDED THAT SUCH
APPLICANT CONTINUES  THE  BUSINESS  OPERATION  AT  THE  SAME  GEOGRAPHIC
LOCATION  AS  THE  LICENSEE.  IN  THE  EVENT  THE APPLICANT SUBSEQUENTLY
REMOVES THE BUSINESS TO ANOTHER LOCATION,  PAYMENT  OF  THE  APPROPRIATE
FRANCHISE  FEE  SHALL  BE  REQUIRED PRIOR TO THE APPROVAL OF THE REMOVAL
PURSUANT TO SUBDIVISION THREE OF SECTION NINETY-NINE-D OF THIS CHAPTER.
  12. THE STATE LIQUOR AUTHORITY MAY MAKE SUCH RULES AS IT DEEMS  NECES-
SARY  TO  CARRY  OUT THE PROVISIONS OF THIS SECTION, HOWEVER, SUCH RULES
SHALL NOT BE CONSTRUED TO PLACE ADDITIONAL LIMITATIONS UPON THE  HOLDERS
OF  LICENSES  ISSUED  PURSUANT  TO  SECTION SEVENTY-NINE OF THIS ARTICLE
UNRELATED TO THE SALE OF WINE.
  S 12. Subdivision 10 of section 105 of the alcoholic beverage  control
law,  paragraph  (a)  as  amended by chapter 679 of the laws of 1950, is
amended to read as follows:
  10. [(a)] Each retail licensee of liquor and/or wine for  off-premises
consumption  shall  have  conspicuously displayed within the interior of
the licensed premises where sales are made and where it can  be  readily
inspected  by consumers a printed price list of the liquors and/or wines

S. 6610                            65                            A. 9710

offered for sale therein; and no liquor and/or wine shall be sold except
at the price set forth in such list[;
  (b)  No  screen,  blind, curtain, partition, article or thing shall be
permitted in the windows or upon the doors of  such  licensed  premises,
which  shall  prevent  a  clear  view into the interior of such licensed
premises from the sidewalk, at all times; and
  (c) No booth, screen, partition or other obstruction shall be  permit-
ted in the interior of said licensed premises].
  S  13. Section  97-a of the alcoholic beverage control law is REPEALED
and a new section 97-a is added to read as follows:
  S 97-A. TEMPORARY RETAIL PERMIT. 1. THE AUTHORITY IS HEREBY AUTHORIZED
TO ISSUE A TEMPORARY RETAIL PERMIT:
  (A) TO THE TRANSFEREE OF A RETAIL LICENSE TO CONTINUE  THE  OPERATIONS
OF A RETAIL PREMISES DURING THE PERIOD THAT THE TRANSFER APPLICATION FOR
THE LICENSE FROM PERSON TO PERSON AT THE SAME PREMISES IS PENDING; OR
  (B)  TO  THE  APPLICANT FOR A NEW RETAIL LICENSE WHERE THE PROSPECTIVE
LICENSED PREMISES IS LOCATED IN A MUNICIPALITY WITH A POPULATION OF LESS
THAN ONE MILLION DURING THE PERIOD THAT THE APPLICATION IS PENDING.
  2. SUCH A PERMIT MAY BE ISSUED IF ALL OF THE FOLLOWING CONDITIONS  ARE
MET:
  (A)  THE  APPLICANT FOR THE TEMPORARY PERMIT SHALL HAVE FILED WITH THE
AUTHORITY AN APPLICATION FOR A RETAIL LICENSE AT SUCH PREMISES, TOGETHER
WITH ALL REQUIRED FILING AND LICENSE FEES;
  (B) THE APPLICANT SHALL HAVE FILED WITH THE AUTHORITY  AN  APPLICATION
FOR A TEMPORARY RETAIL PERMIT, ACCOMPANIED BY A NONREFUNDABLE FILING FEE
OF  ONE HUNDRED TWENTY-EIGHT DOLLARS FOR ALL RETAIL BEER LICENSES OR SIX
HUNDRED FORTY DOLLARS FOR ALL OTHER RETAIL LICENSES; PROVIDED,  HOWEVER,
THAT  NO  TEMPORARY  RETAIL PERMIT SHALL BE ISSUED TO AN APPLICANT FOR A
LICENSE PURSUANT TO SECTION SEVENTY-NINE-E OF  THIS  CHAPTER  UNTIL  THE
FRANCHISE  FEE  OR  ESTIMATED FRANCHISE FEE REQUIRED BY EITHER PARAGRAPH
(A) OR (B) OF SUBDIVISION EIGHT OF SECTION SEVENTY-NINE-E OF THIS  CHAP-
TER  HAS BEEN PAID IN FULL. IN THE EVENT SUCH APPLICATION IS DENIED, THE
APPLICANT SHALL RECEIVE A REFUND OF THE FRANCHISE FEE OR ESTIMATED FRAN-
CHISE FEE;
  (C) IN THE CASE OF A TRANSFER APPLICATION,  THE  PREMISES  SHALL  HAVE
BEEN  OPERATED  UNDER A RETAIL LICENSE WITHIN THIRTY DAYS OF THE DATE OF
FILING THE APPLICATION FOR A TEMPORARY PERMIT;
  (D)  AT THE TIME THE PERMIT IS ISSUED THE CURRENT LICENSE, IF ANY,  IN
EFFECT  FOR  SAID  PREMISES  SHALL HAVE BEEN SURRENDERED TO, PLACED INTO
SAFEKEEPING WITH, OR OTHERWISE DEEMED ABANDONED BY THE AUTHORITY;
  3. A TEMPORARY RETAIL PERMIT UNDER PARAGRAPH (B) OF SUBDIVISION ONE OF
THIS SECTION MAY NOT BE ISSUED FOR ANY PREMISES THAT IS SUBJECT  TO  THE
PROVISIONS OF SECTION SIXTY-THREE, PARAGRAPH (B) OF SUBDIVISION SEVEN OF
SECTION  SIXTY-FOUR,  SUBPARAGRAPH  (II) OF PARAGRAPH (A) OF SUBDIVISION
SEVEN OF SECTION SIXTY-FOUR-A, SUBPARAGRAPH (II)  OF  PARAGRAPH  (A)  OF
SUBDIVISION ELEVEN OF SECTION SIXTY-FOUR-C, PARAGRAPH (B) OF SUBDIVISION
EIGHT OF SECTION SIXTY-FOUR-D, OR SECTION SEVENTY-NINE OF THIS CHAPTER.
  4.  A TEMPORARY RETAIL PERMIT ISSUED BY THE AUTHORITY PURSUANT TO THIS
SECTION SHALL BE FOR A PERIOD NOT TO EXCEED  NINETY  DAYS.  A  TEMPORARY
PERMIT  MAY BE EXTENDED AT THE DISCRETION OF THE AUTHORITY, FOR AN ADDI-
TIONAL THIRTY DAY PERIOD UPON PAYMENT OF AN ADDITIONAL FEE OF SIXTY-FOUR
DOLLARS FOR ALL RETAIL BEER LICENSES  AND  NINETY-SIX  DOLLARS  FOR  ALL
OTHER TEMPORARY PERMITS AND UPON COMPLIANCE WITH ALL CONDITIONS REQUIRED
IN  THIS SECTION. THE AUTHORITY MAY, IN ITS DISCRETION, ISSUE ADDITIONAL
THIRTY DAY EXTENSIONS UPON PAYMENT OF THE APPROPRIATE FEE.

S. 6610                            66                            A. 9710

  5. A TEMPORARY RETAIL PERMIT IS A CONDITIONAL  PERMIT  AND  AUTHORIZES
THE HOLDER THEREOF:
  (A)  IN  THE  CASE OF A TRANSFER APPLICATION TO PURCHASE AND SELL SUCH
ALCOHOLIC BEVERAGES AS WOULD BE PERMITTED TO BE PURCHASED AND SOLD UNDER
THE PRIVILEGES OF THE RETAIL LICENSE FOR WHICH THE TRANSFER  APPLICATION
HAS BEEN FILED;
  (B) IN THE CASE OF ALL OTHER RETAIL APPLICATIONS, TO PURCHASE AND SELL
SUCH  ALCOHOLIC BEVERAGES AS WOULD BE PERMITTED TO BE PURCHASED AND SOLD
UNDER THE PRIVILEGES OF THE LICENSE APPLIED FOR; AND
  (C) TO SELL SUCH ALCOHOLIC BEVERAGES TO CONSUMERS  ONLY  AND  NOT  FOR
RESALE.
  6.  THE  HOLDER  OF A TEMPORARY RETAIL PERMIT SHALL PURCHASE ALCOHOLIC
BEVERAGES ONLY BY PAYMENT IN CURRENCY OR CHECK FOR SUCH ALCOHOLIC BEVER-
AGES ON OR BEFORE  THE  DAY  SUCH  ALCOHOLIC  BEVERAGES  ARE  DELIVERED,
PROVIDED, HOWEVER, THAT THE HOLDER OF A TEMPORARY PERMIT ISSUED PURSUANT
TO  THIS SECTION WHO ALSO HOLDS ONE OR MORE RETAIL LICENSES AND IS OPER-
ATING UNDER SUCH RETAIL LICENSE OR LICENSES IN ADDITION TO THE TEMPORARY
RETAIL PERMIT, AND WHO IS NOT DELINQUENT UNDER THE PROVISIONS OF SECTION
ONE HUNDRED ONE-AA OF THIS CHAPTER AS TO ANY RETAIL LICENSE UNDER  WHICH
HE OPERATES, MAY PURCHASE ALCOHOLIC BEVERAGES ON CREDIT UNDER THE TEMPO-
RARY PERMIT.
  7.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF LAW, A TEMPORARY RETAIL
PERMIT MAY BE SUMMARILY CANCELLED  OR  SUSPENDED  AT  ANY  TIME  IF  THE
AUTHORITY DETERMINES THAT GOOD CAUSE FOR SUCH CANCELLATION OR SUSPENSION
EXISTS.    THE AUTHORITY SHALL PROMPTLY NOTIFY THE HOLDER OF A TEMPORARY
RETAIL PERMIT IN WRITING OF SUCH CANCELLATION OR  SUSPENSION  AND  SHALL
SET FORTH THE REASONS FOR SUCH ACTION.
  8. THE APPLICATION FOR A TEMPORARY PERMIT SHALL BE ON SUCH FORM AS THE
AUTHORITY SHALL PRESCRIBE.
  9.  APPROVAL  OF, OR EXTENSION OF, A TEMPORARY RETAIL PERMIT SHALL NOT
BE DEEMED AS AN APPROVAL OF THE RETAIL APPLICATION.
  10. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW TO THE CONTRARY,
THE AUTHORITY MAY PROMULGATE SUCH RULES AND REGULATIONS AS MAY BE NECES-
SARY TO CARRY OUT THE PROVISIONS OF THIS SECTION.
  S 14. Paragraph f of subdivision 1 of section 99-b  of  the  alcoholic
beverage  control  law,  as added by chapter 486 of the laws of 1941, is
amended to read as follows:
  f. A licensee who is liquidating or selling [his] ITS business,  or  a
former  licensee  whose  license  [was]  HAS  BEEN surrendered, REVOKED,
CANCELLED or HAS expired, to sell [his] ITS entire  stock  of  alcoholic
beverages  to  other  licensees,  PROVIDED, HOWEVER, THAT NO SUCH PERMIT
SHALL BE ISSUED TO A LICENSEE OR FORMER LICENSEE WHO IS DELINQUENT UNDER
THE PROVISIONS OF SECTION ONE HUNDRED  ONE-AA  OR  SECTION  ONE  HUNDRED
ONE-AAA  OF  THIS  CHAPTER.  A  FORMER  LICENSEE  WHOSE LICENSE HAS BEEN
SURRENDERED, REVOKED, CANCELLED, OR HAS EXPIRED, MAY  NOT  TRANSFER  ITS
STOCK  OF ALCOHOLIC BEVERAGES TO ANY OTHER PERSON UNLESS IT OBTAINS SUCH
A PERMIT.
  S 15. Section 3 of the alcoholic beverage control law  is  amended  by
adding a new subdivision 30-a to read as follows:
  30-A.  "TRANSFER" MEANS THE ADMINISTRATIVE PROCESSES INVOLVED IN ISSU-
ING A LICENSE TO A NEW APPLICANT  FOR  AN  EXISTING  LICENSED  BUSINESS.
TRANSFER  APPLICANTS  SHALL BE UNDER CONTRACT WITH THE EXISTING LICENSEE
FOR PURCHASE OF THE EXISTING LICENSED BUSINESS.
  S 16. Subdivision 12 of section 17 of the alcoholic  beverage  control
law,  as  amended by chapter 549 of the laws of 2001, is amended to read
as follows:

S. 6610                            67                            A. 9710

  12. To develop and establish minimum  criteria  for  alcohol  training
awareness programs which may be given and administered by schools; other
entities  including  trade  associations whose members are engaged in or
involved in  the  retail  sale  of  alcoholic  beverages;  national  and
regional  franchisors  who  have granted at least five franchises in the
state which are  licensed  to  sell  beer  at  retail  for  off-premises
consumption;  licensees authorized to sell alcoholic beverages at retail
for off-premises consumption operating five or more  licensed  premises;
and  persons  interested, whether as an individual proprietor or partner
or officer or member of a limited liability company,  in  five  or  more
licensees authorized to sell alcoholic beverages at retail for off-prem-
ises  consumption.  The  authority  shall  provide  for  the issuance of
certificates of approval to all  certified  alcohol  training  awareness
programs.  Certificates  of approval may be revoked by the authority for
failure to adhere to the authority's rules and regulations.  Such  rules
and regulations shall afford those who have been issued a certificate of
approval  an  opportunity  for  a  hearing prior to any determination of
whether such certificate should be revoked.
  No licensee shall be required to apply for  any  such  certificate  or
renewal  certificate  and  the licensee may voluntarily surrender such a
certificate or renewal certificate at any time. A fee in the  amount  of
nine  hundred  dollars shall be paid to the authority with each applica-
tion for a certificate of approval or renewal certificate. The authority
shall promptly refund such fee to an  applicant  whose  application  was
denied. Each certificate of approval and renewal thereof shall be issued
for a period of three years. To effectuate the provisions of this subdi-
vision,  the  authority  is  empowered  to require in connection with an
application the submission of such  information  as  the  authority  may
direct;  to  prescribe forms of applications and of all reports which it
deems necessary to be made by any applicant or  certificate  holder;  to
conduct  investigations;  to  require  the maintenance of such books and
records as the authority may direct; to revoke, cancel, or  suspend  for
cause  any  certificate  provided  for  in this subdivision. Each entity
authorized to give and administer an alcohol training awareness  program
shall  issue  certificates  of completion to all licensees and employees
who successfully complete such an approved  alcohol  training  awareness
program.  Such  entity  shall  regularly  transmit  to the authority the
names, addresses and dates  of  attendance  of  all  the  licensees  and
employees  of  licensees  who  successfully complete an approved alcohol
training awareness program.  Such transmittal shall be  in  a  form  and
manner  prescribed by the authority. The authority shall adopt rules and
regulations to effectuate the provisions of this subdivision,  including
the  minimum  requirements  for  the  curriculum  of  each such training
program and the regular ongoing training of  employees  holding  certif-
icates of completion or renewal certificates. Such rules and regulations
shall  include  the  minimum  requirements for a separate curriculum for
licensees and their employees authorized to sell alcoholic beverages  at
retail for off-premises consumption, minimum requirements for a separate
curriculum for licensees and their employees authorized to sell alcohol-
ic  beverages  at  retail for on-premises consumption, and the form of a
certificate of completion or renewal thereof to be issued in respect  to
each such type of program. A certificate of completion or renewal there-
of  issued  by  an  entity  authorized to give and administer an alcohol
training awareness program pursuant to this subdivision to licensees and
their employees authorized to sell alcoholic  beverages  at  retail  for
off-premises consumption shall not be invalidated by a change of employ-

S. 6610                            68                            A. 9710

ment  to  another  such licensee. A certificate of completion or renewal
thereof issued by an entity authorized to give and administer an alcohol
training awareness program pursuant to this subdivision to licensees and
their  employees  authorized  to  sell alcoholic beverages at retail for
on-premises consumption shall not be invalidated by a change of  employ-
ment  to  another  such licensee.   ATTENDANCE AT ANY COURSE ESTABLISHED
PURSUANT TO THIS SECTION SHALL BE IN PERSON, THROUGH  DISTANCE  LEARNING
METHODS, OR THROUGH AN INTERNET BASED ONLINE PROGRAM.
  S 17.  Paragraph a of subdivision 1 of section 101-aa of the alcoholic
beverage  control  law, as amended by chapter 84 of the laws of 2004, is
amended to read as follows:
  a. "Credit period" means a period  beginning  on  the  date  alcoholic
beverages  are  delivered and ending thirty days thereafter, EXCEPT THAT
WITH REGARD TO LICENSEES LICENSED  UNDER  SECTION  SIXTY-THREE  OF  THIS
CHAPTER  THE  "CREDIT PERIOD" MEANS A PERIOD BEGINNING ON THE DATE ALCO-
HOLIC BEVERAGES ARE DELIVERED AND ENDING SIXTY DAYS THEREAFTER.
  S 18. Paragraph (b) of subdivision 3 of section 101-b of the alcoholic
beverage control law, as amended by section 1 of part E of chapter 56 of
the laws of 2006, is amended to read as follows:
  (b) No brand of liquor or wine shall be sold  to  or  purchased  by  a
retailer  unless a schedule, as provided by this section, is transmitted
to and received by the liquor authority, and is  then  in  effect.  Such
schedule  shall  be  transmitted  to the authority in such form, manner,
medium and format as the authority may  direct;  shall  be  deemed  duly
verified by the person submitting such schedule upon its transmission to
the  authority;  and shall contain, with respect to each item, the exact
brand or trade name, capacity of package, nature of  contents,  age  and
proof where stated on the label, the number of bottles contained in each
case,  the  bottle  and case price to retailers, the net bottle and case
price paid by the seller, which prices, in each instance, shall be indi-
vidual for each item and not in "combination" with any other  item,  the
discounts  for  quantity, if any, and the discounts for time of payment,
if any. PROVIDED HOWEVER THAT,  FOR  THE  PURPOSES  OF  THIS  PARAGRAPH,
DIFFERENT PRODUCTS OR DIFFERENT SIZED BOTTLES FROM THE SAME MANUFACTURER
MAY  BE  COMBINED.  Such  brand  of  liquor or wine shall not be sold to
retailers except at the price and discounts then in effect unless  prior
written  permission of the authority is granted for good cause shown and
for reasons not inconsistent with the  purpose  of  this  chapter.  Such
schedule shall be transmitted by each manufacturer selling such brand to
retailers and by each wholesaler selling such brand to retailers.
  S 19.  Section 101-aa of the alcoholic beverage control law is amended
by adding a new subdivision 3-a to read as follows:
  3-A.  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBDIVISION  THREE OF THIS
SECTION, THE HOLDER OF A LICENSE TO SELL LIQUOR AND WINE AT  RETAIL  FOR
CONSUMPTION  OFF  THE  PREMISES, PURSUANT TO SECTION SIXTY-THREE OF THIS
CHAPTER, OR A LICENSE TO SELL WINE AT RETAIL  FOR  CONSUMPTION  OFF  THE
PREMISES  PURSUANT  TO  SECTION  SEVENTY-NINE OF THIS CHAPTER, WHO IS IN
DEFAULT MAY PURCHASE ALCOHOLIC  BEVERAGES  ON  CREDIT  EXCEPT  FROM  THE
MANUFACTURER OR WHOLESALER WHO PLACED SUCH RETAIL LICENSEE IN DEFAULT.
  S 20. This act shall take effect immediately; provided that:
  (a)  sections two, three, seven, eight, nine, ten, sixteen, seventeen,
eighteen, and nineteen of this act shall take effect on the one  hundred
eightieth day after it shall have become a law; and
  (b) subdivision 9 of section 63 and subdivision 7 of section 79 of the
alcoholic  beverage  control  law, as added by sections two and three of
this act, respectively, shall expire three years  after  such  effective

S. 6610                            69                            A. 9710

date  when  upon  such date the provisions of such subdivisions shall be
deemed repealed.

                                 PART U

  Section  1.  Subdivision 4 of section 22 of the public housing law, as
amended by section 1 of part J-1 of chapter 57 of the laws of  2009,  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-four] TWENTY-EIGHT million dollars. The
limitation 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. This act shall take effect immediately.

                                 PART V

  Section 1. Subdivision (d) of 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,  as  added by section 2 of part Y-1 of chapter 57 of
the laws of 2009, is amended to read as follows:
  (d) ADDITIONAL POOL 1 - 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 gover-
nor's office for motion picture and television development among taxpay-
ers in accordance with subdivision (a) of this section.
  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 (e) to read as follows:
  (E) ADDITIONAL POOL 2 - THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED IN
SUBDIVISION (A) OF THIS SECTION SHALL BE INCREASED BY AN ADDITIONAL $420
MILLION IN 2010, $420 MILLION  IN  2011,  $420  MILLION  IN  2012,  $420
MILLION  IN  2013 AND $420 MILLION IN 2014. 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. THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION  DEVEL-
OPMENT  MUST  NOTIFY  TAXPAYERS OF THEIR ALLOCATION YEAR AND INCLUDE THE
ALLOCATION YEAR ON THE CERTIFICATE OF TAX CREDIT. TAXPAYERS ELIGIBLE  TO
CLAIM  A CREDIT MUST REPORT THE ALLOCATION YEAR DIRECTLY ON THEIR EMPIRE
STATE FILM PRODUCTION CREDIT TAX FORM FOR EACH YEAR A CREDIT IS  CLAIMED
AND  INCLUDE  A  COPY  OF THE CERTIFICATE WITH THEIR TAX RETURN.  IN THE
CASE OF A QUALIFIED FILM THAT RECEIVES FUNDS FROM ADDITIONAL POOL 2,  NO
EMPIRE STATE FILM PRODUCTION CREDIT SHALL BE CLAIMED BEFORE THE LATER OF
(1)  THE  TAXABLE YEAR THE PRODUCTION OF THE QUALIFIED FILM IS COMPLETE,
OR (2) THE TAXABLE YEAR IMMEDIATELY FOLLOWING THE  ALLOCATION  YEAR  FOR
WHICH  THE  FILM  HAS BEEN ALLOCATED CREDIT BY THE GOVERNOR'S OFFICE FOR
MOTION PICTURE AND TELEVISION DEVELOPMENT.
  S 3. Paragraph 1 of subdivision (a) of section 24 of the tax  law,  as
added  by  section  1  of  part  P of chapter 60 of the laws of 2004, is
amended to read as follows:
  (1) Allowance  of  credit.  A  taxpayer  which  is  a  qualified  film
production  company, OR A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY,
or which is a sole proprietor of OR A MEMBER OF A PARTNERSHIP WHICH IS a
qualified film  production  company  OR  A  QUALIFIED  INDEPENDENT  FILM

S. 6610                            70                            A. 9710

PRODUCTION COMPANY, and which is subject to tax under articles nine-A or
twenty-two  of this chapter, shall be allowed a credit against such tax,
pursuant to  the  provisions  referenced  in  subdivision  (c)  of  this
section, to be computed as hereinafter provided.
  S  4.  Paragraph 2 of subdivision (a) of section 24 of the tax law, as
amended by section 1 of part Y-1 of chapter 57 of the laws of  2009,  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:  (I)  the  qualified
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  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
performance of services at any film production facility within and with-
out  the state in the production of such qualified film, AND (II) EXCEPT
WITH RESPECT TO A  QUALIFIED  INDEPENDENT  FILM  PRODUCTION  COMPANY  OR
PILOT,  AT LEAST TEN PERCENT OF THE TOTAL PRINCIPAL PHOTOGRAPHY SHOOTING
DAYS SPENT IN THE PRODUCTION OF SUCH QUALIFIED FILM MUST BE SPENT  AT  A
QUALIFIED   FILM   PRODUCTION  FACILITY.    However,  if  the  qualified
production costs (excluding post production costs) which  are  attribut-
able 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  quali-
fied  production  costs  attributable to the use of tangible property or
the performance of services in the production  of  such  qualified  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 facili-
ty 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  quali-
fied film. The credit shall be allowed for the taxable year in which the
production of such qualified film is completed.  HOWEVER, IN THE CASE OF
A  QUALIFIED  FILM THAT RECEIVES FUNDS FROM ADDITIONAL POOL 2, NO CREDIT
SHALL BE CLAIMED BEFORE THE LATER OF (1) THE TAXABLE YEAR THE PRODUCTION
OF THE QUALIFIED FILM IS COMPLETE, OR (2) THE TAXABLE  YEAR  IMMEDIATELY
FOLLOWING  THE  ALLOCATION  YEAR  FOR  WHICH THE FILM HAS BEEN ALLOCATED
CREDIT BY THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVEL-
OPMENT. 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 FIRST taxable year in which the [production
of the qualified film is completed] CREDIT MAY BE  CLAIMED  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 FIRST taxable year in which the [production
of the qualified film is completed] CREDIT MAY BE  CLAIMED  and  in  the
next  two  succeeding taxable years, with one-third of the amount of the
credit allowed being claimed in each year.
  S 5. Subdivision (a) of section 24 of the tax law is amended by adding
a new paragraph 4 to read as follows:
  (4) NOTWITHSTANDING THE FOREGOING PROVISIONS OF  THIS  SUBDIVISION,  A
QUALIFIED   FILM   PRODUCTION  COMPANY  OR  QUALIFIED  INDEPENDENT  FILM

S. 6610                            71                            A. 9710

PRODUCTION COMPANY, THAT HAS APPLIED FOR CREDIT UNDER THE PROVISIONS  OF
THIS  SECTION, AGREES AS A CONDITION FOR THE GRANTING OF THE CREDIT: (I)
TO INCLUDE IN EACH QUALIFIED FILM DISTRIBUTED BY DVD, OR OTHER MEDIA FOR
THE  SECONDARY  MARKET,  A  NEW  YORK  PROMOTIONAL VIDEO APPROVED BY THE
GOVERNOR'S OFFICE OF MOTION PICTURE AND  TELEVISION  DEVELOPMENT  OR  TO
INCLUDE  IN  THE  END  CREDITS  OF  EACH QUALIFIED FILM "FILMED WITH THE
SUPPORT OF THE NEW YORK STATE GOVERNOR'S OFFICE OF  MOTION  PICTURE  AND
TELEVISION  DEVELOPMENT" AND A LOGO PROVIDED BY THE GOVERNOR'S OFFICE OF
MOTION PICTURE AND TELEVISION DEVELOPMENT, AND (II) TO CERTIFY  THAT  IT
WILL  PURCHASE TAXABLE TANGIBLE PROPERTY AND SERVICES, DEFINED AS QUALI-
FIED PRODUCTION COSTS PURSUANT TO PARAGRAPH ONE OF  SUBDIVISION  (B)  OF
THIS  SECTION, ONLY FROM COMPANIES REGISTERED TO COLLECT AND REMIT STATE
AND LOCAL SALES AND USE TAXES  PURSUANT  TO  ARTICLES  TWENTY-EIGHT  AND
TWENTY-NINE OF THIS CHAPTER.
  S  6.  Paragraph 1 of subdivision (b) of section 24 of the tax law, as
added by section 1 of part P of chapter 60  of  the  laws  of  2004,  is
amended to read as follows:
  (1)  "Qualified  production  costs" means production costs only to the
extent such costs are attributable to the use of  tangible  property  or
the  performance of services within the state directly and predominantly
in the production (including pre-production and post  production)  of  a
qualified film, PROVIDED, HOWEVER, THAT QUALIFIED PRODUCTION COSTS SHALL
NOT  INCLUDE  POST  PRODUCTION  COSTS  UNLESS  THE  PORTION  OF THE POST
PRODUCTION COSTS PAID OR INCURRED THAT IS ATTRIBUTABLE  TO  THE  USE  OF
TANGIBLE  PROPERTY  OR  THE  PERFORMANCE  OF SERVICES IN NEW YORK IN THE
PRODUCTION OF SUCH QUALIFIED FILM EQUALS OR EXCEEDS SEVENTY-FIVE PERCENT
OF THE TOTAL POST PRODUCTION COSTS SPENT WITHIN AND WITHOUT NEW YORK  IN
THE PRODUCTION OF SUCH QUALIFIED FILM.
  S  7.  Paragraph 4 of subdivision (b) of section 24 of the tax law, as
added by section 1 of part P of chapter 60  of  the  laws  of  2004,  is
amended to read as follows:
  (4) "Film production facility" shall mean a building and/or complex of
buildings  and  their improvements and associated back-lot facilities in
which films are or are intended  to  be  regularly  produced  and  which
contain  at  least  one  sound  stage, PROVIDED, HOWEVER, THAT AN ARMORY
OWNED BY THE STATE OR CITY OF NEW YORK LOCATED IN THE CITY OF  NEW  YORK
SHALL  NOT  BE  CONSIDERED  TO BE A "FILM PRODUCTION FACILITY" UNLESS IT
MEETS THE CRITERIA CONTAINED IN PARAGRAPH FIVE OF  THIS  SUBDIVISION  OR
UNLESS  SUCH FACILITY IS USED BY A QUALIFIED INDEPENDENT FILM PRODUCTION
COMPANY.
  S 8. Paragraph 5 of subdivision (b) of section 24 of the tax  law,  as
added  by  section  1  of  part  P of chapter 60 of the laws of 2004, is
amended to read as follows:
  (5) "Qualified film production facility" shall mean a film  production
facility  in the state, which contains at least one sound stage having a
minimum of seven thousand square feet of  contiguous  production  space,
PROVIDED,  HOWEVER,  THAT  EXCEPT  WITH  RESPECT  TO  A  QUALIFIED  FILM
PRODUCTION  FACILITY  BEING  USED  BY  A  QUALIFIED   INDEPENDENT   FILM
PRODUCTION  COMPANY:  (I)  A FILM PRODUCTION FACILITY IN THE CITY OF NEW
YORK MUST CONTAIN AT LEAST ONE SOUND STAGE HAVING  A  MINIMUM  OF  SEVEN
THOUSAND  SQUARE FEET OF CONTIGUOUS PRODUCTION SPACE THAT IS SOUND PROOF
WITH A NOISE CRITERIA ("NC") OF 30 OR BETTER, HAS SUFFICIENT HEATING AND
AIR CONDITIONING FOR SHOOTING WITHOUT THE NEED FOR  SUPPLEMENTAL  UNITS,
INCORPORATES  A  PERMANENT GRID AND SUFFICIENT BUILT-IN ELECTRIC SERVICE
FOR SHOOTING WITHOUT THE NEED FOR GENERATORS, AND IS COLUMN-FREE WITH  A
CLEAR HEIGHT OF AT LEAST SIXTEEN FEET UNDER THE PERMANENT GRID; AND (II)

S. 6610                            72                            A. 9710

AN  ARMORY OWNED BY THE STATE OR CITY OF NEW YORK LOCATED IN THE CITY OF
NEW YORK THAT DOES NOT SATISFY THE CRITERIA OF SUBPARAGRAPH (I) OF  THIS
PARAGRAPH  SHALL BE TREATED AS A QUALIFIED FILM PRODUCTION FACILITY UPON
CERTIFICATION  BY THE GOVERNOR'S OFFICE OF MOTION PICTURE AND TELEVISION
DEVELOPMENT OF A PETITION SUBMITTED TO THAT OFFICE BY A  QUALIFIED  FILM
PRODUCTION COMPANY ESTABLISHING THAT NO QUALIFIED FILM PRODUCTION FACIL-
ITY  IS AVAILABLE IN THE CITY OF NEW YORK THAT HAS STAGE SPACE AVAILABLE
FOR SHOOTING SUCH COMPANY'S FILM. SUCH PETITION SHALL  BE  SUBMITTED  NO
LATER  THAN  NINETY DAYS PRIOR TO THE START OF PRINCIPAL PHOTOGRAPHY FOR
THE QUALIFIED FILM AND THE GOVERNOR'S OFFICE OF MOTION PICTURE AND TELE-
VISION DEVELOPMENT SHALL HAVE TEN DAYS TO CERTIFY OR  REJECT  THE  PETI-
TION.  A STAGE WILL BE DEEMED UNAVAILABLE IF CONSIDERATION HAS BEEN PAID
FOR ITS USE OR SUCH STAGE IS CURRENTLY UNDER AN AGREEMENT WITH AN OPTION
FOR USE AND, IN EITHER CIRCUMSTANCE, SUCH PERIOD  OF  USE  INCLUDES  THE
PETITIONER'S ESTIMATED START DATE OF PRINCIPAL PHOTOGRAPHY.
  S 9. Subdivision (b) of section 24 of the tax law is amended by adding
a new paragraph 7 to read as follows:
  (7)  "QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY" IS A CORPORATION,
PARTNERSHIP, LIMITED PARTNERSHIP, OR OTHER ENTITY OR INDIVIDUAL, THAT OR
WHO (I) IS PRINCIPALLY ENGAGED IN THE PRODUCTION  OF  A  QUALIFIED  FILM
WITH  A MAXIMUM BUDGET OF FIFTEEN MILLION DOLLARS, AND (II) CONTROLS THE
QUALIFIED FILM DURING PRODUCTION, AND (III) EITHER  IS  NOT  A  PUBLICLY
TRADED  ENTITY, OR NO MORE THAN FIVE PERCENT OF THE BENEFICIAL OWNERSHIP
OF WHICH IS OWNED, DIRECTLY OR INDIRECTLY, BY A PUBLICLY TRADED ENTITY.
  S 10. Section 24 of the tax law is amended by adding a new subdivision
(d) to read as follows:
  (D) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, EMPLOYEES AND OFFI-
CERS OF THE GOVERNOR'S OFFICE OF MOTION PICTURE AND TELEVISION  DEVELOP-
MENT  AND  THE DEPARTMENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND
EXCHANGE INFORMATION REGARDING THE  CREDITS  APPLIED  FOR,  ALLOWED,  OR
CLAIMED  PURSUANT  TO  THIS  SECTION  AND TAXPAYERS WHO ARE APPLYING FOR
CREDITS OR WHO ARE CLAIMING CREDITS, INCLUDING INFORMATION CONTAINED  IN
OR  DERIVED  FROM  CREDIT  CLAIM  FORMS  SUBMITTED TO THE DEPARTMENT AND
APPLICATIONS FOR CREDIT SUBMITTED TO THE  GOVERNOR'S  OFFICE  OF  MOTION
PICTURE AND TELEVISION DEVELOPMENT.
  S  11.  Section 9 of part P of chapter 60 of the laws of 2004 amending
the tax law relating to the empire  state  film  production  credit,  as
amended  by section 5 of part WW-1 of chapter 57 of the laws of 2008, is
amended to read as follows:
  S 9. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2004, with respect to  "qualified
production  costs"  paid  or  incurred  on or after such effective date,
providing final applications are approved  on  or  after  the  effective
date,  regardless  of  whether  the initial application relating to such
qualified film was first submitted before such date,  [provided  further
that  this  act  shall  expire  and  be deemed repealed January 1, 2014,
provided further that the expiration and repeal of this  act  shall  not
affect  the  carry  over of any credit allowed pursuant to this act and,
subsequent to the expiration and repeal of this  act,  such  carry  over
credits  shall  be allowed as provided by and pursuant to the provisions
of this act, and] provided further that the IMB credit for energy  taxes
under  subsection  (t-l)  of  section  606  of  the tax law contained in
section three of this act shall expire on the same date as  provided  in
subdivision  (a)  of  section  49 of part Y of chapter 63 of the laws of
2000.

S. 6610                            73                            A. 9710

  S 12. This act shall take effect immediately; provided  that  sections
one  through  nine  of  this  act shall apply to applications for credit
awarded under additional pool 2 authorized by section two of this act.

                                 PART W

  Section  1.  The  economic  development law is amended by adding a new
article 17 to read as follows:
                               ARTICLE 17
                       EXCELSIOR JOBS PROGRAM ACT
SECTION 350. SHORT TITLE.
        351. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION.
        352. DEFINITIONS.
        353. ELIGIBILITY CRITERIA.
        354. APPLICATION AND APPROVAL PROCESS.
        355. EXCELSIOR JOBS PROGRAM CREDIT.
        356. POWERS AND DUTIES OF THE COMMISSIONER.
        357. MAINTENANCE OF RECORDS.
        358. REPORTING.
        359. CAP ON TAX CREDIT.
  S 350. SHORT TITLE.  THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
THE "EXCELSIOR JOBS PROGRAM ACT".
  S 351. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION.  IT IS HERE-
BY  FOUND  AND DECLARED THAT NEW YORK STATE NEEDS, AS A MATTER OF PUBLIC
POLICY, TO CREATE COMPETITIVE FINANCIAL  INCENTIVES  FOR  BUSINESSES  TO
CREATE  JOBS  IN  THE  NEW  ECONOMY.  THE  EXCELSIOR JOBS PROGRAM ACT IS
CREATED TO SUPPORT  THE  GROWTH  OF  THE  STATE'S  TRADITIONAL  ECONOMIC
PILLARS  INCLUDING  THE  MANUFACTURING  AND  FINANCIAL INDUSTRIES AND TO
ENSURE THAT NEW YORK EMERGES AS THE LEADER IN THE KNOWLEDGE,  TECHNOLOGY
AND  INNOVATION  BASED ECONOMY. THE PROGRAM WILL ENCOURAGE THE EXPANSION
IN AND RELOCATION TO NEW YORK OF BUSINESSES IN GROWTH INDUSTRIES SUCH AS
CLEAN-TECH,  BROADBAND,  INFORMATION  SYSTEMS,  RENEWABLE   ENERGY   AND
BIOTECHNOLOGY.
  THIS  LEGISLATION CREATES THE EXCELSIOR JOBS PROGRAM CREDIT, WHICH HAS
THREE COMPONENTS: THE EXCELSIOR JOBS TAX CREDIT, THE  EXCELSIOR  INVEST-
MENT  TAX CREDIT, AND THE EXCELSIOR RESEARCH AND DEVELOPMENT TAX CREDIT.
THESE CREDITS ARE DESIGNED TO PROMOTE BUSINESS  EXPANSION  IN  NEW  YORK
STATE  AND  INCREASE  JOBS  IN  THE  NEW  ECONOMY. AT THE SAME TIME, THE
PROGRAM PROTECTS STATE TAXPAYERS' DOLLARS  BY  ENSURING  THAT  NEW  YORK
PROVIDES  TAX BENEFITS ONLY TO BUSINESSES THAT HAVE CREATED THE PROMISED
JOBS.
  S 352. DEFINITIONS.  1. "CERTIFICATE OF ELIGIBILITY" MEANS  THE  DOCU-
MENT  ISSUED  BY  THE  DEPARTMENT  TO AN APPLICANT THAT HAS COMPLETED AN
APPLICATION TO BE ADMITTED INTO THE EXCELSIOR JOBS PROGRAM AND HAS  BEEN
ACCEPTED INTO THE PROGRAM BY THE DEPARTMENT.
  2.  "CERTIFICATE OF TAX CREDIT" MEANS THE DOCUMENT ISSUED TO A PARTIC-
IPANT BY THE DEPARTMENT, AFTER THE  DEPARTMENT  HAS  VERIFIED  THAT  THE
PARTICIPANT HAS CREATED ITS PROJECTED NUMBER OF NET NEW JOBS IN NEW YORK
STATE  AND  HAS  MET THE OTHER ELIGIBILITY CRITERIA IN THIS ARTICLE. THE
CERTIFICATE SHALL BE ISSUED ANNUALLY IF SUCH CRITERIA ARE SATISFIED  AND
SHALL  SPECIFY  THE  EXACT  AMOUNT  OF EACH OF THE TAX CREDIT COMPONENTS
UNDER THIS ARTICLE THAT A PARTICIPANT MAY  CLAIM,  PURSUANT  TO  SECTION
THREE  HUNDRED FIFTY-FIVE OF THIS ARTICLE, AND SHALL SPECIFY THE TAXABLE
YEAR IN WHICH SUCH CREDIT MAY BE CLAIMED.
  3. "FINANCIAL SERVICES DATA CENTERS  OR  FINANCIAL  SERVICES  CUSTOMER
SERVICE  CENTERS"  MEANS  OPERATIONS THAT MANAGE THE DATA OR ACCOUNTS OF

S. 6610                            74                            A. 9710

EXISTING CUSTOMERS OF FINANCIAL  INSTITUTIONS,  INCLUDING  BANKS,  OTHER
LENDERS,  SECURITIES  AND  COMMODITIES  BROKERS  AND DEALERS, INVESTMENT
BANKS, PORTFOLIO MANAGERS, TRUST OFFICES, AND INSURANCE COMPANIES.
  4.  "INTERNET  PUBLISHING" MEANS PUBLISHING CONTENT EXCLUSIVELY ON THE
INTERNET.
  5. "MANUFACTURING" MEANS THE PROCESS OF  WORKING  RAW  MATERIALS  INTO
WARES  SUITABLE  FOR  USE  OR WHICH GIVES NEW SHAPES, NEW QUALITY OR NEW
COMBINATIONS TO MATTER WHICH HAS ALREADY GONE  THROUGH  SOME  ARTIFICIAL
PROCESS  BY  THE  USE  OF MACHINERY, TOOLS, APPLIANCES, OR OTHER SIMILAR
EQUIPMENT.  "MANUFACTURING" DOES NOT INCLUDE AN OPERATION THAT  INVOLVES
ONLY THE ASSEMBLY OF COMPONENTS, OTHER THAN THE ASSEMBLY OF AUTOMOBILES.
  6. "NET NEW JOBS" MEANS JOBS CREATED IN THIS STATE THAT:
  (A) ARE NEW TO THE STATE;
  (B)  HAVE  NOT BEEN TRANSFERRED FROM ANOTHER LOCATION IN THIS STATE OR
FROM A RELATED BUSINESS ENTITY IN THIS STATE;
  (C) ARE EITHER FULL-TIME JOBS OR EQUIVALENT TO A FULL-TIME JOB REQUIR-
ING AT LEAST THIRTY-FIVE HOURS PER WEEK; AND
  (D) ARE FILLED FOR MORE THAN SIX MONTHS.
  7. "PARTICIPANT" MEANS A BUSINESS ENTITY THAT:
  (A) HAS COMPLETED AN APPLICATION PRESCRIBED BY THE  DEPARTMENT  TO  BE
ADMITTED INTO THE PROGRAM;
  (B) HAS BEEN ISSUED A CERTIFICATE OF ELIGIBILITY BY THE DEPARTMENT;
  (C) HAS DEMONSTRATED THAT IT MEETS THE ELIGIBILITY CRITERIA IN SECTION
THREE  HUNDRED  FIFTY-THREE AND SUBDIVISION TWO OF SECTION THREE HUNDRED
FIFTY-FOUR OF THIS ARTICLE; AND
  (D) HAS BEEN CERTIFIED AS A PARTICIPANT BY THE COMMISSIONER.
  8. "PRELIMINARY SCHEDULE OF  BENEFITS"  MEANS  THE  MAXIMUM  AGGREGATE
AMOUNT  OF  EACH  COMPONENT  OF THE TAX CREDIT THAT A PARTICIPANT IN THE
EXCELSIOR JOBS PROGRAM IS ELIGIBLE TO RECEIVE PURSUANT TO THIS  ARTICLE.
THE  SCHEDULE  SHALL INDICATE THE ANNUAL AMOUNT OF EACH COMPONENT OF THE
CREDIT A PARTICIPANT MAY CLAIM IN EACH OF ITS FIVE YEARS OF ELIGIBILITY.
THE PRELIMINARY SCHEDULE OF BENEFITS SHALL BE ISSUED BY  THE  DEPARTMENT
WHEN  THE  DEPARTMENT  APPROVES  THE  APPLICATION FOR ADMISSION INTO THE
PROGRAM. THE COMMISSIONER MAY AMEND THAT  SCHEDULE,  PROVIDED  THAT  THE
COMMISSIONER  COMPLIES  WITH  THE  CREDIT  CAPS IN SECTION THREE HUNDRED
FIFTY-NINE OF THIS ARTICLE.
  9. "QUALIFIED INVESTMENT" MEANS AN  INVESTMENT  IN  TANGIBLE  PROPERTY
(INCLUDING  A BUILDING OR A STRUCTURAL COMPONENT OF A BUILDING) OWNED BY
A BUSINESS ENTERPRISE WHICH:
  (A) IS DEPRECIABLE PURSUANT TO SECTION ONE HUNDRED SIXTY-SEVEN OF  THE
INTERNAL REVENUE CODE;
  (B) HAS A USEFUL LIFE OF FOUR YEARS OR MORE;
  (C)  IS  ACQUIRED BY PURCHASE AS DEFINED IN SECTION ONE HUNDRED SEVEN-
TY-NINE (D) OF THE INTERNAL REVENUE CODE;
  (D) HAS A SITUS IN THIS STATE; AND
  (E) IS PLACED IN SERVICE IN THE STATE ON OR AFTER THE DATE THE CERTIF-
ICATE OF ELIGIBILITY IS ISSUED TO THE BUSINESS ENTERPRISE.
  10. "RESEARCH AND DEVELOPMENT EXPENDITURES" MEAN THE EXPENSES  OF  THE
BUSINESS  ENTERPRISE  THAT  ARE  QUALIFIED  RESEARCH  EXPENSES UNDER THE
FEDERAL RESEARCH AND DEVELOPMENT CREDIT UNDER SECTION FORTY-ONE  OF  THE
INTERNAL  REVENUE  CODE  AND ARE ATTRIBUTABLE TO ACTIVITIES CONDUCTED IN
THE STATE.
  11. "SCIENTIFIC RESEARCH AND DEVELOPMENT"  MEANS  CONDUCTING  RESEARCH
AND  EXPERIMENTAL  DEVELOPMENT  IN  THE  PHYSICAL, ENGINEERING, AND LIFE
SCIENCES, INCLUDING BUT NOT LIMITED TO AGRICULTURE,  ELECTRONICS,  ENVI-
RONMENTAL,  BIOLOGY,  BOTANY, BIOTECHNOLOGY, COMPUTERS, CHEMISTRY, FOOD,

S. 6610                            75                            A. 9710

FISHERIES, FORESTS, GEOLOGY, HEALTH, MATHEMATICS,  MEDICINE,  OCEANOGRA-
PHY,  PHARMACY,  PHYSICS, VETERINARY, AND OTHER ALLIED SUBJECTS. FOR THE
PURPOSES OF THIS ARTICLE, SCIENTIFIC RESEARCH AND DEVELOPMENT  DOES  NOT
INCLUDE MEDICAL OR VETERINARY LABORATORY TESTING FACILITIES.
  12.  "SOFTWARE  DEVELOPMENT"  MEANS  THE  CREATION  OF  CODED COMPUTER
INSTRUCTIONS.
  S 353. ELIGIBILITY CRITERIA.  1. TO BE A PARTICIPANT IN THE  EXCELSIOR
JOBS PROGRAM, A BUSINESS ENTITY SHALL OPERATE PREDOMINANTLY:
  (A)  AS  A  FINANCIAL  SERVICES  DATA  CENTER  OR A FINANCIAL SERVICES
CUSTOMER SERVICE CENTER;
  (B) IN INTERNET PUBLISHING;
  (C) IN MANUFACTURING;
  (D) IN SOFTWARE DEVELOPMENT;
  (E) IN SCIENTIFIC RESEARCH AND DEVELOPMENT; OR
  (F) IN AN  INDUSTRY  WITH  SIGNIFICANT  POTENTIAL  FOR  PRIVATE-SECTOR
ECONOMIC  GROWTH AND DEVELOPMENT IN NEW YORK STATE AS ESTABLISHED BY THE
COMMISSIONER IN REGULATIONS PROMULGATED PURSUANT TO THIS ARTICLE.
  2. A NOT-FOR-PROFIT BUSINESS ENTITY, A BUSINESS ENTITY  WHOSE  PRIMARY
FUNCTION IS THE PROVISION OF SERVICES INCLUDING PERSONAL SERVICES, BUSI-
NESS  SERVICES,  OR  THE  PROVISION  OF UTILITIES, AND A BUSINESS ENTITY
ENGAGED PREDOMINANTLY IN THE RETAIL OR ENTERTAINMENT INDUSTRY,  ARE  NOT
ELIGIBLE TO RECEIVE THE TAX CREDIT DESCRIBED IN THIS ARTICLE.
  3. A BUSINESS ENTITY MUST BE IN SUBSTANTIAL COMPLIANCE WITH ALL WORKER
PROTECTION  AND ENVIRONMENTAL LAWS AND REGULATIONS. IN ADDITION, A BUSI-
NESS ENTITY MAY NOT OWE PAST DUE NEW YORK STATE TAXES OR LOCAL  PROPERTY
TAXES.
  4. A BUSINESS ENTITY MUST CREATE THE NET NEW JOBS THAT IT PROJECTED IN
ITS  APPLICATION  FOR  ADMISSION  INTO THE PROGRAM AND THEN RETAIN THOSE
JOBS IN SUBSEQUENT YEARS IN ORDER TO PARTICIPATE IN THE PROGRAM.
  S 354. APPLICATION AND APPROVAL PROCESS.   1.  A  BUSINESS  ENTERPRISE
MUST SUBMIT A COMPLETED APPLICATION AS PRESCRIBED BY THE COMMISSIONER.
  2. AS PART OF SUCH APPLICATION, EACH BUSINESS ENTERPRISE MUST:
  (A) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
TAX  INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION SHARED AS
A RESULT OF THIS AGREEMENT SHALL NOT  BE  AVAILABLE  FOR  DISCLOSURE  OR
INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW.
  (B)  ALLOW  THE  DEPARTMENT AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS
AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE.
  (C) VOLUNTARILY DECERTIFY FROM THE EMPIRE ZONES  PROGRAM  IF  ADMITTED
INTO  THE  EXCELSIOR  JOBS PROGRAM, EFFECTIVE FOR THE FIRST TAXABLE YEAR
THAT THE BUSINESS ENTERPRISE MAY CLAIM THE EXCELSIOR JOBS PROGRAM CREDIT
AND FOR ALL SUBSEQUENT TAXABLE YEARS.
  (D) SUBMIT THE PRIOR THREE YEARS OF FEDERAL AND NEW YORK STATE  INCOME
OR FRANCHISE TAX RETURNS AND UNEMPLOYMENT INSURANCE QUARTERLY RETURNS TO
THE  DEPARTMENT.  IF THE BUSINESS ENTITY HAS BEEN SUBJECT TO TAX IN THIS
STATE FOR LESS THAN THREE YEARS, IT MUST  SUBMIT  RETURNS  FOR  ALL  THE
YEARS IT HAS BEEN SUBJECT TO TAX.
  (E) PROVIDE THE FOLLOWING INFORMATION TO THE DEPARTMENT:
  (I)  A  PLAN  FOR NO MORE THAN TWO YEARS, OUTLINING THE CREATION OF AT
LEAST FIFTY NET NEW JOBS IN NEW YORK, INCLUDING DETAILS  ON  JOB  TITLES
AND  EXPECTED  SALARIES  FOR  NEW  POSITIONS CREATED, AND A PLAN FOR THE
SUBSEQUENT FIVE YEARS, OUTLINING ANY ADDITIONAL NET NEW  JOBS  (AND  THE
DETAILS  ON JOB TITLES AND EXPECTED SALARIES) THAT IT PLANS TO CREATE IN
THE FIVE YEARS AFTER THE BUSINESS ENTERPRISE RECEIVES ITS FIRST  CERTIF-
ICATE OF TAX CREDIT;

S. 6610                            76                            A. 9710

  (II)  THE  AMOUNT  AND  DESCRIPTION OF PROJECTED QUALIFIED INVESTMENTS
THAT IT PLANS TO MAKE BETWEEN THE TIME IT RECEIVES  ITS  CERTIFICATE  OF
ELIGIBILITY AND THE LAST YEAR IT WOULD BE ALLOWED TO CLAIM THE TAX CRED-
IT; AND
  (III)  AN ESTIMATE OF THE PORTION OF ANY FEDERAL RESEARCH AND DEVELOP-
MENT TAX CREDITS, ATTRIBUTABLE TO RESEARCH  AND  DEVELOPMENT  ACTIVITIES
CONDUCTED  IN NEW YORK STATE, THAT IT ANTICIPATES CLAIMING FOR THE YEARS
IT EXPECTS TO CLAIM THE STATE CREDIT.
  (F) PROVIDE A CLEAR AND DETAILED PRESENTATION OF ALL  RELATED  PERSONS
TO  THE  APPLICANT,  AS THE TERM "RELATED PERSON" IS DEFINED IN SUBPARA-
GRAPH (C) OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION  FOUR  HUNDRED
SIXTY-FIVE  OF  THE INTERNAL REVENUE CODE, TO ASSURE THE DEPARTMENT THAT
JOBS ARE NOT BEING SHIFTED WITHIN THE STATE.
  (G) SUBMIT THE EMPLOYER IDENTIFICATION OR SOCIAL SECURITY NUMBERS  FOR
ALL  RELATED  PERSONS  TO THE APPLICANT, AS THE TERM "RELATED PERSON" IS
DEFINED IN SUBPARAGRAPH (C) OF PARAGRAPH  THREE  OF  SUBSECTION  (B)  OF
SECTION  FOUR HUNDRED SIXTY-FIVE OF THE INTERNAL REVENUE CODE, INCLUDING
THOSE OF ANY MEMBERS OF A LIMITED LIABILITY COMPANY  OR  PARTNERS  IN  A
PARTNERSHIP.
  (H)  CERTIFY,  UNDER  PENALTY  OF  PERJURY,  THAT IT IS IN SUBSTANTIAL
COMPLIANCE WITH ALL ENVIRONMENTAL, WORKER PROTECTION, AND LOCAL,  STATE,
AND FEDERAL TAX LAWS.
  3.  AFTER  REVIEWING A BUSINESS ENTERPRISE'S COMPLETED APPLICATION AND
DETERMINING THAT THE BUSINESS ENTERPRISE WILL MEET  THE  CONDITIONS  SET
FORTH  IN  SUBDIVISION TWO OF THIS SECTION, THE DEPARTMENT MAY ADMIT THE
APPLICANT INTO THE PROGRAM AND PROVIDE THE APPLICANT WITH A  CERTIFICATE
OF  ELIGIBILITY  AND A PRELIMINARY SCHEDULE OF BENEFITS BY YEAR BASED ON
THE APPLICANT'S PROJECTIONS  AS  SET  FORTH  IN  ITS  APPLICATION.  THIS
PRELIMINARY  SCHEDULE  OF BENEFITS DELINEATES THE MAXIMUM POSSIBLE BENE-
FITS AN APPLICANT MAY RECEIVE.
  4. RECEIPT OF TAX BENEFITS. IN ORDER TO BECOME A  PARTICIPANT  IN  THE
PROGRAM,  AN  APPLICANT  MUST  MEET THE JOB PROJECTIONS SPECIFIED IN ITS
APPLICATION WITHIN TWENTY-FOUR MONTHS OF THE DATE OF THE ISSUANCE OF ITS
CERTIFICATE OF ELIGIBILITY. AN APPLICANT THAT MEETS ITS JOB  PROJECTIONS
WITHIN  THAT  TWENTY-FOUR  MONTH  PERIOD  MUST  SUBMIT PROOF OF THAT JOB
CREATION TO THE DEPARTMENT AND PROOF  OF  ITS  ACTUAL  EXPENDITURES  AND
OTHER REQUIRED INFORMATION AS THE COMMISSIONER MAY PRESCRIBE RELATING TO
THE  EXCELSIOR  JOBS  PROGRAM  CREDIT.  AFTER  REVIEWING SUCH PROOF, THE
DEPARTMENT SHALL CERTIFY THE APPLICANT AS A  PARTICIPANT  AND  ISSUE  TO
THAT  PARTICIPANT  A  CERTIFICATE OF TAX CREDIT FOR ONE TAXABLE YEAR. TO
RECEIVE A CERTIFICATE OF TAX CREDIT FOR SUBSEQUENT  TAXABLE  YEARS,  THE
PARTICIPANT  MUST SUBMIT TO THE DEPARTMENT A PERFORMANCE REPORT REQUIRED
BY SECTION THREE HUNDRED FIFTY-EIGHT OF THIS ARTICLE, PROOF THAT IT  HAS
CREATED  AND RETAINED THE NET NEW JOBS, PROOF OF ITS ACTUAL EXPENDITURES
FOR QUALIFIED  INVESTMENTS  CONTAINED  IN  ITS  APPLICATION,  AND  OTHER
REQUIRED  INFORMATION  AS THE COMMISSIONER MAY PRESCRIBE RELATING TO THE
EXCELSIOR JOBS PROGRAM CREDIT. A PARTICIPANT'S INCREASE  IN  EMPLOYMENT,
QUALIFIED  INVESTMENT,  OR  FEDERAL  RESEARCH AND DEVELOPMENT TAX CREDIT
ATTRIBUTABLE TO RESEARCH AND DEVELOPMENT ACTIVITIES IN  NEW  YORK  STATE
ABOVE  ITS  PROJECTIONS LISTED IN ITS APPLICATION SHALL NOT RESULT IN AN
INCREASE IN TAX BENEFITS UNDER THIS ARTICLE.  HOWEVER,  IF  THE  PARTIC-
IPANT'S  EXPENDITURES  ARE  LESS  THAN THE ESTIMATED AMOUNTS, THE CREDIT
SHALL BE LESS THAN THE ESTIMATE. IF AN APPLICANT  FAILS  TO  CREATE  ITS
PROJECTED  NUMBER  OF NET NEW JOBS IN THE FIRST TWENTY-FOUR MONTHS AFTER
BEING ADMITTED TO THE PROGRAM, SUCH APPLICANT SHALL NOT BE CERTIFIED  AS
A PARTICIPANT.

S. 6610                            77                            A. 9710

  5.  A PARTICIPANT MAY CLAIM TAX BENEFITS COMMENCING IN THE FIRST TAXA-
BLE YEAR THAT THE BUSINESS ENTERPRISE  RECEIVES  A  CERTIFICATE  OF  TAX
CREDIT  OR  THE FIRST TAXABLE YEAR LISTED ON ITS PRELIMINARY SCHEDULE OF
BENEFITS, WHICHEVER IS LATER. A PARTICIPANT MAY CLAIM SUCH BENEFITS  FOR
THE  NEXT  FOUR CONSECUTIVE TAXABLE YEARS, PROVIDED THAT THE PARTICIPANT
DEMONSTRATES TO THE DEPARTMENT THAT IT CONTINUES TO SATISFY  THE  ELIGI-
BILITY  CRITERIA  SPECIFIED IN SECTION THREE HUNDRED FIFTY-THREE OF THIS
ARTICLE AND SUBDIVISION TWO OF THIS SECTION IN  EACH  OF  THOSE  TAXABLE
YEARS.
  S  355.  EXCELSIOR  JOBS PROGRAM CREDIT.  1. EXCELSIOR JOBS TAX CREDIT
COMPONENT. A PARTICIPANT IN THE EXCELSIOR JOBS PROGRAM SHALL BE ELIGIBLE
TO CLAIM A CREDIT EQUAL TO AT LEAST TWO THOUSAND  FIVE  HUNDRED  DOLLARS
BUT  NOT  MORE THAN TEN THOUSAND DOLLARS FOR EACH NET NEW JOB IT CREATES
IN NEW YORK STATE. THE AMOUNT OF SUCH CREDIT PER  JOB  SHALL  BE  ESTAB-
LISHED  IN THE SOLE DISCRETION OF THE COMMISSIONER AND SHALL BE BASED ON
CRITERIA INCLUDING SALARY AND BENEFIT LEVELS AND LOCATION  IN  A  CENSUS
TRACT DESIGNATED AS DISTRESSED BY THE COMMISSIONER.
  2.  EXCELSIOR  INVESTMENT  TAX  CREDIT COMPONENT. A PARTICIPANT IN THE
EXCELSIOR JOBS PROGRAM SHALL BE ELIGIBLE TO CLAIM A CREDIT ON  QUALIFIED
INVESTMENTS  MADE  DURING THE TAXABLE YEAR. THE CREDIT SHALL BE EQUAL TO
TWO PERCENT OF THE FEDERAL COST OR OTHER BASIS OF THE QUALIFIED  INVEST-
MENT.  A  PARTICIPANT  MAY  NOT  CLAIM BOTH THE EXCELSIOR INVESTMENT TAX
CREDIT AND THE INVESTMENT TAX CREDIT SET FORTH IN SUBDIVISION TWELVE  OF
SECTION  TWO  HUNDRED  TEN,  SUBSECTION  (A) OF SECTION SIX HUNDRED SIX,
SUBSECTION (I) OF SECTION FOURTEEN HUNDRED FIFTY-SIX, OR SUBSECTION  (Q)
OF  SECTION  FIFTEEN HUNDRED ELEVEN OF THE TAX LAW FOR THE SAME PROPERTY
IN ANY TAXABLE YEAR. IN ADDITION, A TAXPAYER WHO OR WHICH  IS  QUALIFIED
TO CLAIM THE EXCELSIOR INVESTMENT TAX CREDIT COMPONENT AND IS ALSO QUAL-
IFIED  TO  CLAIM THE BROWNFIELD TANGIBLE PROPERTY CREDIT COMPONENT UNDER
SECTION TWENTY-ONE OF THE TAX LAW, AS ADDED BY CHAPTER ONE OF  THE  LAWS
OF  TWO  THOUSAND  THREE,  MAY CLAIM EITHER THE EXCELSIOR INVESTMENT TAX
CREDIT COMPONENT OR SUCH TANGIBLE PROPERTY  CREDIT  COMPONENT,  BUT  NOT
BOTH  WITH REGARD TO A PARTICULAR PIECE OF PROPERTY. A CREDIT MAY NOT BE
CLAIMED UNTIL A BUSINESS ENTERPRISE HAS RECEIVED A  CERTIFICATE  OF  TAX
CREDIT,  PROVIDED  THAT QUALIFIED INVESTMENTS MADE ON OR AFTER THE ISSU-
ANCE OF THE CERTIFICATE OF ELIGIBILITY BUT BEFORE THE  ISSUANCE  OF  THE
CERTIFICATE  OF TAX CREDIT TO THE BUSINESS ENTERPRISE, MAY BE CLAIMED IN
THE FIRST TAXABLE YEAR FOR WHICH THE BUSINESS ENTERPRISE IS  ALLOWED  TO
CLAIM THE CREDIT. EXPENSES INCURRED PRIOR TO THE DATE THE CERTIFICATE OF
ELIGIBILITY IS ISSUED ARE NOT ELIGIBLE TO BE INCLUDED IN THE CALCULATION
OF THE CREDIT.
  3.  EXCELSIOR RESEARCH AND DEVELOPMENT TAX CREDIT COMPONENT. A PARTIC-
IPANT IN THE EXCELSIOR JOBS PROGRAM SHALL BE ELIGIBLE TO CLAIM A  CREDIT
EQUAL  TO  TEN  PERCENT  OF  THE  PORTION  OF  THE PARTICIPANT'S FEDERAL
RESEARCH AND DEVELOPMENT TAX CREDIT THAT RELATES  TO  THE  PARTICIPANT'S
RESEARCH AND DEVELOPMENT EXPENDITURES DURING THE TAXABLE YEAR.
  4. REFUNDABILITY OF CREDITS.  THE TAX CREDIT COMPONENTS ESTABLISHED IN
THIS  SECTION  SHALL  BE  REFUNDABLE  AS  PROVIDED  IN THE TAX LAW. IF A
PARTICIPANT FAILS TO SATISFY THE ELIGIBILITY CRITERIA IN ANY  ONE  YEAR,
IT  WILL  LOSE  THE  ABILITY TO CLAIM CREDIT FOR THAT YEAR. THE EVENT OF
SUCH FAILURE SHALL NOT EXTEND THE ORIGINAL FIVE-YEAR ELIGIBILITY PERIOD.
  5. CLAIM OF TAX CREDIT.  THE BUSINESS ENTERPRISE SHALL BE  ALLOWED  TO
CLAIM THE CREDIT AS PRESCRIBED IN SECTION THIRTY-ONE OF THE TAX LAW.
  S  356.  POWERS  AND  DUTIES OF THE COMMISSIONER.  1. THE COMMISSIONER
SHALL PROMULGATE REGULATIONS ESTABLISHING  AN  APPLICATION  PROCESS  AND
SELECTION CRITERIA, THAT WILL BE APPLIED CONSISTENT WITH THE PURPOSES OF

S. 6610                            78                            A. 9710

THIS  ARTICLE,  SO  AS  NOT  TO EXCEED THE ANNUAL CAP ON TAX CREDITS SET
FORTH IN  SECTION  THREE  HUNDRED  FIFTY-NINE  OF  THIS  ARTICLE  WHICH,
NOTWITHSTANDING  ANY PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRA-
TIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMERGENCY BASIS.
  2.  THE  COMMISSIONER  SHALL,  IN  CONSULTATION WITH THE DEPARTMENT OF
TAXATION AND FINANCE, DEVELOP A CERTIFICATE OF TAX CREDIT THAT SHALL  BE
ISSUED  BY  THE  COMMISSIONER  TO  THOSE PARTICIPANTS. PARTICIPANTS MUST
INCLUDE THE CERTIFICATE OF TAX CREDIT WITH THEIR TAX RETURN  TO  RECEIVE
ANY TAX BENEFITS UNDER THIS ARTICLE.
  3.  THE  COMMISSIONER  SHALL  SOLELY  DETERMINE THE ELIGIBILITY OF ANY
APPLICANT APPLYING FOR ENTRY INTO  THE  PROGRAM  AND  SHALL  REMOVE  ANY
PARTICIPANT FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIREMENTS
SET FORTH IN SUBDIVISION TWO OF SECTION THREE HUNDRED FIFTY-FOUR OF THIS
ARTICLE.
  S  357. MAINTENANCE OF RECORDS.  EACH PARTICIPANT SHALL KEEP ALL RELE-
VANT RECORDS FOR THEIR DURATION  OF  PROGRAM  PARTICIPATION  PLUS  THREE
YEARS.
  S  358.  REPORTING.    1.  EACH  PARTICIPANT MUST SUBMIT A PERFORMANCE
REPORT ANNUALLY, IN SUCH FORM AS THE COMMISSIONER  MAY  REQUIRE,  WITHIN
THIRTY DAYS OF THE END OF THEIR TAXABLE YEAR.
  2.  THE COMMISSIONER SHALL ANNUALLY PREPARE A PROGRAM REPORT FOR POST-
ING ON THE DEPARTMENT'S WEB SITE BY  DECEMBER  THIRTY-FIRST.  THE  FIRST
REPORT  WILL  BE  DUE  DECEMBER  THIRTY-FIRST, TWO THOUSAND ELEVEN. SUCH
REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, THE  FOLLOWING:  NUMBER  OF
APPLICANTS;  NUMBER  OF  PARTICIPANTS  APPROVED;  NAMES OF PARTICIPANTS;
TOTAL AMOUNT OF BENEFITS CERTIFIED; BENEFITS RECEIVED  PER  PARTICIPANT;
TOTAL NUMBER OF NET NEW JOBS CREATED; NUMBER OF NET NEW JOBS CREATED PER
PARTICIPANT;  AGGREGATE  NEW INVESTMENT IN THE STATE; NEW INVESTMENT PER
PARTICIPANT; AND SUCH OTHER INFORMATION AS THE COMMISSIONER DETERMINES.
  S 359. CAP ON TAX CREDIT.  THE TOTAL AMOUNT OF TAX CREDITS  LISTED  ON
CERTIFICATES  OF  TAX  CREDIT ISSUED BY THE COMMISSIONER FOR ANY TAXABLE
YEAR MAY NOT EXCEED THE LIMITATIONS  SET  FORTH  IN  THIS  SECTION.  ANY
AMOUNT  OF TAX CREDITS NOT AWARDED FOR A PARTICULAR TAXABLE YEAR MAY NOT
BE USED BY THE COMMISSIONER TO AWARD  TAX  CREDITS  IN  ANOTHER  TAXABLE
YEAR.

CREDIT COMPONENTS IN THE AGGREGATE                WITH RESPECT TO
SHALL NOT EXCEED:                                 TAXABLE YEARS
                                                  BEGINNING IN:

$ 50 MILLION                                      2011
$ 100 MILLION                                     2012
$ 150 MILLION                                     2013
$ 200 MILLION                                     2014
$ 250 MILLION                                     2015
$ 200 MILLION                                     2016
$ 150 MILLION                                     2017
$ 100 MILLION                                     2018
$ 50 MILLION                                      2019
  S  2.  The  tax  law  is amended by adding a new section 31 to read as
follows:
  S 31. EXCELSIOR JOBS PROGRAM  TAX  CREDIT.  (A)  GENERAL.  A  TAXPAYER
SUBJECT   TO   TAX  UNDER  ARTICLE  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  (G)  OF  THIS

S. 6610                            79                            A. 9710

SECTION.  THE AMOUNT OF THE CREDIT, ALLOWABLE FOR UP TO FIVE CONSECUTIVE
TAXABLE YEARS, IS THE SUM OF THE FOLLOWING THREE CREDIT COMPONENTS:
  (1) THE EXCELSIOR JOBS TAX CREDIT;
  (2) THE EXCELSIOR INVESTMENT TAX CREDIT; AND
  (3) THE EXCELSIOR RESEARCH AND DEVELOPMENT TAX CREDIT.
  (B)  TO  BE  ELIGIBLE  FOR  THE EXCELSIOR JOBS PROGRAM TAX CREDIT, THE
TAXPAYER SHALL HAVE BEEN ISSUED A "CERTIFICATE OF  TAX  CREDIT"  BY  THE
DEPARTMENT  OF  ECONOMIC  DEVELOPMENT  PURSUANT  TO  SUBDIVISION FOUR OF
SECTION THREE HUNDRED FIFTY-FOUR OF THE ECONOMIC DEVELOPMENT LAW,  WHICH
CERTIFICATE  SHALL SET FORTH THE AMOUNT OF EACH CREDIT COMPONENT FOR THE
TAXABLE YEAR. A TAXPAYER MAY CLAIM  SUCH  CREDIT  FOR  FIVE  CONSECUTIVE
TAXABLE  YEARS  COMMENCING  IN  THE FIRST TAXABLE YEAR THAT THE TAXPAYER
RECEIVES A CERTIFICATE OF TAX CREDIT OR THE FIRST TAXABLE YEAR LISTED ON
ITS PRELIMINARY SCHEDULE OF BENEFITS, WHICHEVER IS LATER.  THE  TAXPAYER
SHALL  BE  ALLOWED TO CLAIM ONLY THE AMOUNT LISTED ON THE CERTIFICATE OF
TAX CREDIT FOR THAT TAXABLE YEAR.  SUCH CERTIFICATE SHOULD  BE  ATTACHED
TO  THE  TAXPAYER'S  RETURN.  NO COST OR EXPENSE PAID OR INCURRED BY THE
TAXPAYER SHALL BE THE BASIS FOR MORE THAN ONE COMPONENT OF  THIS  CREDIT
OR ANY OTHER TAX CREDIT.
  (C)  ELECTION OF CREDIT. A TAXPAYER WHO OR WHICH IS QUALIFIED TO CLAIM
THE EXCELSIOR INVESTMENT TAX CREDIT COMPONENT AND IS ALSO  QUALIFIED  TO
CLAIM THE INVESTMENT TAX CREDIT PROVIDED FOR UNDER SUBDIVISION TWELVE OF
SECTION  TWO  HUNDRED  TEN,  SUBSECTION  (A) OF SECTION SIX HUNDRED SIX,
SUBSECTION (I) OF SECTION FOURTEEN HUNDRED FIFTY-SIX, OR SUBDIVISION (Q)
OF SECTION FIFTEEN HUNDRED ELEVEN OF THIS CHAPTER, MAY CLAIM EITHER  THE
EXCELSIOR  INVESTMENT TAX CREDIT COMPONENT OR THE INVESTMENT TAX CREDIT,
BUT NOT BOTH WITH REGARD TO A PARTICULAR PIECE OF PROPERTY. IN ADDITION,
A TAXPAYER WHO OR WHICH IS QUALIFIED TO CLAIM THE  EXCELSIOR  INVESTMENT
TAX  CREDIT  COMPONENT  AND  IS  ALSO  QUALIFIED TO CLAIM THE BROWNFIELD
TANGIBLE PROPERTY CREDIT COMPONENT  UNDER  SECTION  TWENTY-ONE  OF  THIS
ARTICLE,  AS ADDED BY CHAPTER ONE OF THE LAWS OF TWO THOUSAND THREE, MAY
CLAIM EITHER THE EXCELSIOR  INVESTMENT  TAX  CREDIT  COMPONENT  OR  SUCH
TANGIBLE  PROPERTY  CREDIT  COMPONENT,  BUT  NOT  BOTH  WITH REGARD TO A
PARTICULAR PIECE OF  PROPERTY.  THE  ELECTION  TO  CLAIM  THE  EXCELSIOR
INVESTMENT TAX CREDIT COMPONENT, THE INVESTMENT TAX CREDIT OR THE BROWN-
FIELD  TANGIBLE PROPERTY CREDIT COMPONENT, WITH REGARD TO THE SAME PROP-
ERTY, IS IRREVOCABLE.
  (D) INFORMATION SHARING. NOTWITHSTANDING ANY PROVISION OF  THIS  CHAP-
TER,  EMPLOYEES  AND  OFFICERS OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT
AND THE DEPARTMENT SHALL BE  ALLOWED  AND  ARE  DIRECTED  TO  SHARE  AND
EXCHANGE:
  (1)  INFORMATION  DERIVED FROM TAX RETURNS OR REPORTS THAT IS RELEVANT
TO A  TAXPAYER'S  ELIGIBILITY  TO  PARTICIPATE  IN  THE  EXCELSIOR  JOBS
PROGRAM;
  (2)  INFORMATION  REGARDING  THE COMPONENT OR COMPONENTS OF THE CREDIT
APPLIED FOR, ALLOWED, OR CLAIMED PURSUANT TO THIS SECTION AND  TAXPAYERS
WHO ARE APPLYING FOR THE CREDIT OR WHO ARE CLAIMING THE CREDIT; AND
  (3)  INFORMATION  CONTAINED  IN  OR  DERIVED  FROM  CREDIT CLAIM FORMS
SUBMITTED TO THE DEPARTMENT AND  APPLICATIONS  FOR  ADMISSION  INTO  THE
EXCELSIOR JOBS PROGRAM.
  OTHER  THAN  THE  INFORMATION  REQUIRED  TO BE CONTAINED IN THE REPORT
ISSUED PURSUANT TO SUBDIVISION (E)  OF  THIS  SECTION,  ALL  INFORMATION
EXCHANGED BETWEEN THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPART-
MENT  SHALL NOT BE SUBJECT TO DISCLOSURE OR INSPECTION UNDER THE STATE'S
FREEDOM OF INFORMATION LAW.

S. 6610                            80                            A. 9710

  (E) EXCELSIOR JOBS PROGRAM TAX CREDIT  REPORT.  (1)  THE  COMMISSIONER
MUST  PUBLISH  AN  EXCELSIOR  JOBS PROGRAM TAX CREDIT REPORT ANNUALLY BY
JUNE THIRTIETH. THE FIRST REPORT MUST BE PUBLISHED  BY  JUNE  THIRTIETH,
TWO THOUSAND ELEVEN.
  (2) THE CREDIT REPORT MUST CONTAIN THE FOLLOWING INFORMATION ABOUT THE
EXCELSIOR  JOBS PROGRAM TAX CREDIT CLAIMED UNDER THIS CHAPTER DURING THE
PREVIOUS CALENDAR YEAR:
  (I) THE NAME OF EACH TAXPAYER CLAIMING A CREDIT; PROVIDED HOWEVER,  IF
THE  TAXPAYER  CLAIMS  A  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 COMPA-
NY,  PARTNERSHIP  OR  SUBCHAPTER S CORPORATION EARNING ANY OF THE CREDIT
MUST BE INCLUDED IN THE REPORT INSTEAD OF INFORMATION ABOUT THE TAXPAYER
CLAIMING THE CREDIT; AND
  (II) THE AMOUNT OF EACH  CREDIT  EARNED  BY  EACH  TAXPAYER;  PROVIDED
HOWEVER,  IF  THE  TAXPAYER  CLAIMS  A  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 AMOUNT OF CREDIT EARNED
BY EACH ENTITY MUST BE INCLUDED IN THE  REPORT  INSTEAD  OF  INFORMATION
ABOUT THE TAXPAYER CLAIMING THE CREDIT.
  (3)  THE CREDIT REPORT MAY ALSO CONTAIN ANY OTHER INFORMATION RECEIVED
BY THE COMMISSIONER WITH REGARD TO THE EXCELSIOR JOBS PROGRAM TAX CREDIT
THAT THE COMMISSIONER DEEMS TO BE USEFUL IN EVALUATING THE  USE  OF  THE
CREDIT.   THE INFORMATION INCLUDED IN THE CREDIT 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.
  (F) CREDIT RECAPTURE. IF A CERTIFICATE OF ELIGIBILITY OR A CERTIFICATE
OF  TAX  CREDIT  ISSUED  BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT UNDER
ARTICLE SEVENTEEN OF THE ECONOMIC DEVELOPMENT LAW  IS  REVOKED  BY  SUCH
DEPARTMENT,  THE  AMOUNT OF CREDIT DESCRIBED IN THIS SECTION AND CLAIMED
BY THE TAXPAYER PRIOR TO THAT REVOCATION SHALL BE ADDED BACK  TO  INCOME
IN THE TAXABLE YEAR IN WHICH ANY SUCH REVOCATION BECOMES FINAL.
  (G)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9-A: SECTION 210: SUBDIVISION 41.
  (2) ARTICLE 22: SECTION 606: SUBSECTION (QQ).
  (3) ARTICLE 32: SECTION 1456: SUBSECTION (U).
  (4) ARTICLE 33: SECTION 1511: SUBDIVISION (Y).
  S 3. Section 210 of the tax law is amended by adding a new subdivision
41 to read as follows:
  41. EXCELSIOR JOBS PROGRAM TAX CREDIT.  (A)  ALLOWANCE  OF  CREDIT.  A
TAXPAYER WILL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION
THIRTY-ONE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH  YEAR  TO  LESS
THAN  THE  HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF
SUBDIVISION ONE OF THIS  SECTION.  HOWEVER,  IF  THE  AMOUNT  OF  CREDIT
ALLOWED  UNDER  THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE  IN  SUCH  TAXABLE
YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED
IN  ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF
THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS  OF  SUBSECTION  (C)  OF
SECTION  ONE  THOUSAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO
INTEREST WILL BE PAID THEREON.
  S 4. Section 606 of the tax law is amended by adding a new  subsection
(qq) to read as follows:

S. 6610                            81                            A. 9710

  (QQ) EXCELSIOR JOBS PROGRAM TAX CREDIT. (1) A TAXPAYER WILL BE ALLOWED
A  CREDIT,  TO THE EXTENT ALLOWED UNDER SECTION THIRTY-ONE OF THIS CHAP-
TER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX  HUNDRED
EIGHTY-SIX  OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE
PAID THEREON.
  S 5. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended  by adding a new clause (xxxi) to read as
follows:

(XXXI) EXCELSIOR JOBS PROGRAM TAX  AMOUNT OF CREDIT UNDER SUBDIVISION
CREDIT UNDER SUBSECTION (QQ)       FORTY-ONE OF SECTION TWO HUNDRED TEN

  S 6. Section 1456 of the tax law is amended by adding a new subsection
(u) to read as follows:
  (U) EXCELSIOR JOBS PROGRAM TAX CREDIT.  (1)  ALLOWANCE  OF  CREDIT.  A
TAXPAYER WILL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION
THIRTY-ONE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR WILL
NOT  REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE MINIMUM TAX FIXED
BY PARAGRAPH THREE OF SUBSECTION (B) OF SECTION FOURTEEN HUNDRED  FIFTY-
FIVE  OF  THIS  ARTICLE.  HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY
AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR WILL BE TREAT-
ED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR  REFUNDED  IN  ACCORDANCE
WITH  THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER.
PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOU-
SAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST  WILL  BE
PAID THEREON.
  S  7.  Section 1511 of the tax law is amended by adding a new subdivi-
sion (y) to read as follows:
  (Y) EXCELSIOR JOBS PROGRAM TAX CREDIT.  (1)  ALLOWANCE  OF  CREDIT.  A
TAXPAYER WILL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION
THIRTY-ONE OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS
THAN  THE  MINIMUM  TAX FIXED BY THIS ARTICLE. HOWEVER, IF THE AMOUNT OF
CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
TAX  TO  SUCH  AMOUNT,  ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
  S 8. This act shall take effect July 1, 2010.

                                 PART X

  Section 1. It is the intent of the legislature to clarify and  confirm
that  the  amendments made to the general municipal law by chapter 57 of
the laws of 2009 that require the revocation of certification of certain
business entities previously certified under the  empire  zones  program
are intended to be effective for the taxable year in which the decertif-

S. 6610                            82                            A. 9710

ication  occurs  and  for  all subsequent taxable years, notwithstanding
that any such business entity may subsequently apply  for  certification
pursuant  to  part  11 of title 5 of the New York state codes, rules and
regulations,  and  that  such  decertifications  that  occur in 2009 are
deemed to be in effect for the taxable year commencing on or after Janu-
ary 1, 2008 and before January 1, 2009.
  S 2. Subdivision (a) of section 959 of the general municipal  law,  as
amended  by  section 3 of part S-1 of chapter 57 of the laws of 2009, is
amended to read as follows:
  (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 certification
by  the  commissioner  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  caus-
ing  individuals to transfer from existing employment with another busi-
ness enterprise to similar employment with the  business  enterprise  so
certified,  and  transferring existing employment from one or more other
municipalities, 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
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-

S. 6610                            83                            A. 9710

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  decertification by the commissioner, upon the recommendation of the
commissioner of labor, 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 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 decertif-
ication by the commissioner 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 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 busi-
ness  enterprise failed to disclose facts in its application for certif-
ication that would constitute grounds for not issuing  a  certification;
(2)  the  business enterprise has failed to construct, expand, rehabili-
tate or operate or invest in its facility  substantially  in  accordance
with the representations 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;
(4) where applicable, the business enterprise has failed  to  submit  an
annual  report  after  it  has  applied for zone tax benefits or program
assistance based on new hires or investments or failed to  submit  other
information  when  due;  (5) the business enterprise, 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 anoth-
er  business  enterprise  with similar ownership and located in New York
state to similar employment with the certified business enterprise or if
the enterprise acquired, purchased, leased, or  had  transferred  to  it
real  property  previously  owned  by  an entity with similar ownership,
regardless of form of incorporation or organization;  (6)  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 business
enterprise is decertified with respect to an empire zone: (A)  the  date
determined  to  be  the earliest event constituting grounds for revoking
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; WITH RESPECT TO
ANY BUSINESS ENTERPRISE WHOSE CERTIFICATION HAS BEEN REVOKED PURSUANT TO
SUBPARAGRAPH FIVE OR SIX OF THIS PARAGRAPH, THAT REVOCATION (I) WILL  BE
EFFECTIVE  FOR  A  TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND EIGHT AND BEFORE JANUARY  FIRST,  TWO  THOUSAND  NINE  AND  FOR
SUBSEQUENT TAXABLE YEARS, UNLESS THE BUSINESS ENTERPRISE IS SUBSEQUENTLY
RE-CERTIFIED PURSUANT TO PART 11 OF TITLE 5 OF THE NEW YORK STATE CODES,
RULES  AND  REGULATIONS  FOR A BUSINESS ENTERPRISE FOR WHICH A REVIEW IS

S. 6610                            84                            A. 9710

REQUIRED TO BE CONDUCTED PURSUANT TO SUBDIVISION (W) OF THIS SECTION  IN
CALENDAR  YEAR  TWO THOUSAND NINE, AND (II) THEREAFTER WILL BE EFFECTIVE
FOR THE TAXABLE YEAR DURING WHICH THE  COMMISSIONER  MAKES  HIS  OR  HER
DETERMINATION  (PRIOR  TO  ANY  APPEAL) TO REVOKE THE CERTIFICATION OF A
BUSINESS ENTERPRISE AND FOR SUBSEQUENT TAXABLE YEARS;
  S 3. Subdivision (w) of section 959 of the general municipal  law,  as
amended  by  section 3 of part S-1 of chapter 57 of the laws of 2009, is
amended to read as follows:
  (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
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)] (V) 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  economic,  social  and
environmental  factors  when  evaluating  the  costs  and  benefits of a
project to the state and whether continued  certification  is  warranted
based  on such factors. The commissioner shall provide written notifica-
tion to such business enterprise of his or her determination  to  revoke
the  certification,  including  the  reasons therefor. Such notification
shall state that the business enterprise may appeal the determination 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 commis-
sioner's revocation notification. Provided that the business  enterprise
appeals the commissioner's determination within fifteen business days of
the  commissioner's revocation notification, the business enterprise may
present a written submission to the empire  zone  designation  board  no
later  than  sixty days following the date the commissioner'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 business 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] SUFFICIENT evidence presented BY THE BUSI-
NESS ENTERPRISE demonstrating  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  subdivision  (a)  of this section, any extraordinary
circumstances occurred which would justify the  continued  certification
of the business enterprise.
  S 4. Paragraph 6 of subdivision (d) of section 1119 of the tax law, as
added  by  section  31 of part S-1 of chapter 57 of the laws of 2009, is
amended to read as follows:

S. 6610                            85                            A. 9710

  (6) Any reference in this chapter OR IN ANY LOCAL  LAW,  ORDINANCE  OR
RESOLUTION  ENACTED  PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF
THIS CHAPTER to former subdivision (z) of section eleven hundred fifteen
of this article will be deemed to be a reference  to  this  subdivision,
AND  ANY  SUCH  LOCAL  LAW,  ORDINANCE  OR RESOLUTION WHICH PROVIDES THE
EXEMPTIONS DESCRIBED IN FORMER SUBDIVISION (Z) OF  SUCH  SECTION  ELEVEN
HUNDRED FIFTEEN SHALL BE DEEMED INSTEAD TO PROVIDE THE REFUNDS AND CRED-
ITS DESCRIBED IN THIS SUBDIVISION.
  S 5. Subdivision (a) of section 17 of the tax law, as added by section
43  of part S-1 of chapter 57 of the laws of 2009, is amended to read as
follows:
  (a) The department of taxation and  finance  must  publish  an  empire
zones  tax benefits report annually by [January thirty-first] JUNE THIR-
TIETH. The first report must be published by [January thirty-first] JUNE
THIRTIETH, two thousand [thirteen] ELEVEN.
  S 6. Subdivision (d) of section 44 of part S-1 of chapter  57  of  the
laws  of 2009, amending the general municipal law and the tax law relat-
ing to enacting reforms to the empire zones program, is amended to  read
as follows:
  (d)  section  forty-two  of  this  act shall take effect on January 1,
[2012] 2010; and
  S 7. Subdivision 12-B of section 210 of the  tax  law  is  amended  by
adding a new paragraph (g) to read as follows:
  (G)  NOTWITHSTANDING  THE EXPIRATION OF THE EMPIRE ZONES PROGRAM UNDER
ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL  LAW,  A  TAXPAYER  THAT  IS
CERTIFIED  AS  A  QUALIFIED  INVESTMENT PROJECT PURSUANT TO SUCH ARTICLE
EIGHTEEN-B ON THE DAY IMMEDIATELY PRECEDING THE  DAY  THE  EMPIRE  ZONES
PROGRAM EXPIRED SHALL CONTINUE TO BE DEEMED CERTIFIED UNDER SUCH ARTICLE
EIGHTEEN-B  FOR  PURPOSES  OF  THIS SUBDIVISION FOR THE REMAINDER OF THE
TAXABLE YEAR IN WHICH THE EXPIRATION OCCURRED AND FOR THE NEXT  SUCCEED-
ING  NINE  TAXABLE  YEARS.  IN  ADDITION, THE AREAS DESIGNATED AS EMPIRE
ZONES IN WHICH THE TAXPAYER  IS  CERTIFIED  AS  A  QUALIFIED  INVESTMENT
PROJECT  ON  THE  DAY  IMMEDIATELY  PRECEDING  THE  DAY THE EMPIRE ZONES
PROGRAM EXPIRED SHALL CONTINUE TO BE DEEMED EMPIRE ZONES FOR PURPOSES OF
THIS SUBDIVISION FOR THE REMAINDER OF THE  TAXABLE  YEAR  IN  WHICH  THE
EXPIRATION OCCURRED AND FOR THE NEXT SUCCEEDING NINE TAXABLE YEARS.
  S  8.  Subdivision  12-C  of  section 210 of the tax law is amended by
adding a new paragraph (d) to read as follows:
  (D) NOTWITHSTANDING THE EXPIRATION OF THE EMPIRE ZONES  PROGRAM  UNDER
ARTICLE  EIGHTEEN-B  OF  THE  GENERAL  MUNICIPAL LAW, A TAXPAYER THAT IS
CERTIFIED AS A QUALIFIED INVESTMENT PROJECT  PURSUANT  TO  SUCH  ARTICLE
EIGHTEEN-B  ON  THE  DAY  IMMEDIATELY PRECEDING THE DAY THE EMPIRE ZONES
PROGRAM EXPIRED SHALL CONTINUE TO BE DEEMED CERTIFIED UNDER SUCH ARTICLE
EIGHTEEN-B FOR PURPOSES OF THIS SUBDIVISION FOR  THE  REMAINDER  OF  THE
TAXABLE  YEAR IN WHICH THE EXPIRATION OCCURRED AND FOR THE NEXT SUCCEED-
ING NINE TAXABLE YEARS. IN ADDITION,  THE  AREAS  DESIGNATED  AS  EMPIRE
ZONES  IN  WHICH  THE  TAXPAYER  IS  CERTIFIED AS A QUALIFIED INVESTMENT
PROJECT ON THE DAY  IMMEDIATELY  PRECEDING  THE  DAY  THE  EMPIRE  ZONES
PROGRAM EXPIRED SHALL CONTINUE TO BE DEEMED EMPIRE ZONES FOR PURPOSES OF
THIS  SUBDIVISION  FOR  THE  REMAINDER  OF THE TAXABLE YEAR IN WHICH THE
EXPIRATION OCCURRED AND FOR THE NEXT SUCCEEDING NINE TAXABLE YEARS.
  S 9. This act shall take effect immediately, provided that the  amend-
ment  to  paragraph  6 of subdivision (d) of section 1119 of the tax law
made by section four of this act shall take effect on the same date  and
apply  in  the  same manner that section 31 of part S-1 of chapter 57 of
the laws of 2009 took effect and applied.

S. 6610                            86                            A. 9710

                                 PART Y

  Section 1. Section 51 of chapter 298 of the laws of 1985, amending the
tax law relating to the franchise tax on banking corporations imposed by
the tax law, authorized to be imposed by any city having a population of
one  million  or  more by chapter 772 of the laws of 1966 and imposed by
the administrative code of the city of New York and  relating  to  other
provisions  of  the  tax  law,  chapter  883 of the laws of 1975 and the
administrative code of the city of New York which relates to such  fran-
chise  tax,  as amended by section 1 of part H of chapter 60 of the laws
of 2007, is amended to read as follows:
  S 51. This act shall take effect immediately and shall apply to  taxa-
ble years beginning on or after January 1, 1985, except that:
  (a) sections one through eight shall not apply to taxable years begin-
ning on or after January 1, [2010] 2011;
  (b)  sections  nine,  twelve,  the  amendment  made  to paragraph 9 of
subsection (a) of section 1452 of  the  tax  law  by  section  thirteen,
sections  fifteen,  sixteen,  eighteen,  nineteen, twenty, twenty-three,
twenty-seven, thirty and thirty-two, the amendment made to  paragraph  9
of  subdivision  (a) of section 11-640 of the administrative code of the
city of New York by section thirty-three, sections thirty-five,  thirty-
six, thirty-eight, thirty-nine, forty, and forty-five shall not apply to
corporations  other than savings banks and savings and loan associations
for taxable years beginning on or after January 1, [2010] 2011;
  (c)  sections  twenty-one,  twenty-two,  twenty-four,  forty-one   and
forty-two  shall  not apply to corporations other than savings banks and
savings and loan associations for taxable years beginning  on  or  after
January  1,  [2010] 2011, provided, however, that the provisions of such
sections which relate to the alternative minimum tax measured by taxable
assets shall continue to apply to all taxpayers for taxable years begin-
ning on or after January 1, [2010] 2011;
  (d) the amendment to the section heading and the opening paragraph  of
section 11-643.3 of the administrative code of the city of New York made
by  section  forty-three  shall  not  apply  to  corporations other than
savings banks and savings and loan associations for taxable years begin-
ning on or after January 1, [2010] 2011 with respect to those provisions
of such section 11-643.3 which relate  to  the  basic  tax  measured  by
entire net income; and
  (e)  section twenty-eight, and the addition of new section 11-643.5 of
the administrative code of the city of New York made by  section  forty-
four  shall  not  apply  to  corporations  other  than savings banks and
savings and loan associations for taxable years beginning  on  or  after
January  1,  [2010] 2011, provided, however, that the provisions of such
sections which relate to  the  alternative  minimum  taxes  measured  by
assets,  issued  capital stock and one hundred twenty-five dollars shall
continue to apply to all taxpayers for taxable  years  beginning  on  or
after January 1, [2010] 2011.
  S  2.  Subdivision  (f)  of  section 110 of chapter 817 of the laws of
1987, amending the tax  law  and  the  environmental  conservation  law,
constituting  the business tax reform and rate reduction act of 1987, as
amended by section 2 of part H of chapter 60 of the  laws  of  2007,  is
amended to read as follows:
  (f) The provisions of section one hundred four of this act shall apply
to  taxable years beginning after December 31, 1986, and shall not apply
to corporations other than savings banks and savings  and  loan  associ-
ations  for  taxable years beginning on or after January 1, [2010] 2011,

S. 6610                            87                            A. 9710

provided, however, that the provisions of such section which  relate  to
the alternative minimum tax measured by taxable assets shall continue to
apply  to  all taxpayers for taxable years beginning on or after January
1, [2010] 2011.
  S 3. Subdivision (d) of section 68 of chapter 525 of the laws of 1988,
amending the tax law and the administrative code of the city of New York
relating  to the imposition of taxes in the city of New York, as amended
by section 3 of part H of chapter 60 of the laws of 2007, is amended  to
read as follows:
  (d)  The  provisions  of  section forty-six of this act shall apply to
taxable years beginning after December 31, 1986, and shall not apply  to
corporations  other than savings banks and savings and loan associations
for taxable  years  beginning  on  or  after  January  1,  [2010]  2011,
provided,  however,  that the provisions of such section which relate to
the alternative minimum tax measured by taxable assets shall continue to
apply to all taxpayers for taxable years beginning on or  after  January
1, [2010] 2011;
  S  4. Extension of Gramm-Leach-Bliley transitional provisions.  Refer-
ences in subsection (m) of section 1452 of the tax law  and  subdivision
(1) of section 11-640 of the administrative code of the city of New York
to  January  1,  2008 shall be read as January 1, 2010 and references in
those provisions to January 1, 2010 shall be read as January 1, 2011, as
if those dates were specifically referenced in those provisions of  law.
References  in  subparagraph  (iv) of paragraph (2) of subsection (f) of
section 1462 of the tax law and subparagraph  (iv)  of  paragraph  2  of
subdivision (f) of section 11-646 of the administrative code of the city
of  New  York to January 1, 2010 shall be read as January 1, 2011, as if
that date was specifically referenced in those provisions of law.    The
legislative  bill  drafting  commission is hereby directed to effectuate
this provision, and shall be  guided  by  a  memorandum  of  instruction
setting  forth  the specific provisions of law to be amended. Such memo-
randum shall be transmitted to the legislative bill drafting  commission
within thirty days of enactment of this provision. Such memorandum shall
be  issued  jointly  by  the  governor,  the  temporary president of the
senate, and the speaker of the assembly, or by the delegate of each.
  S 5. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after January 1, 2010.

                                 PART Z

  Section  1.  This  act enacts into law major components of legislation
relating to tax enforcement,  sales  tax  avoidance  and  statements  of
industrial  agencies  and  their  agents.    Each  component  is  wholly
contained within a Subpart identified  as  Subparts  A  through  C.  The
effective  date  for  each  particular  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 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 Subpart in  which  it
is  found.  Section  three  of this act sets forth the general effective
date of this act.

                                SUBPART A

S. 6610                            88                            A. 9710

  Section 1. The tax law is amended by adding two new sections 1808  and
1809 to read as follows:
  S  1808. PERSONAL INCOME AND EARNINGS TAXES; REPEATED FAILURE TO FILE.
(A) ANY PERSON WHO, WITH INTENT TO EVADE  PAYMENT  OF  ANY  TAX  IMPOSED
UNDER  ARTICLE TWENTY-TWO OF THIS CHAPTER OR ANY RELATED INCOME OR EARN-
INGS TAX STATUTE, FAILS TO FILE A RETURN FOR THREE  CONSECUTIVE  TAXABLE
YEARS SHALL BE GUILTY OF A CLASS E FELONY, PROVIDED THAT SUCH PERSON HAD
AN  UNPAID  TAX  LIABILITY WITH RESPECT TO EACH OF THE THREE CONSECUTIVE
TAXABLE YEARS.
  (B) IN ANY PROSECUTION FOR A VIOLATION  OF  SUBDIVISION  (A)  OF  THIS
SECTION,  IT  SHALL  BE  A  DEFENSE THAT THE DEFENDANT HAD NO UNPAID TAX
LIABILITY FOR ANY OF THE THREE CONSECUTIVE TAXABLE YEARS.
  (C) AS USED IN THIS SUBDIVISION, THE TERM "RETURN" SHALL MEAN A RETURN
REQUIRED UNDER SECTION SIX HUNDRED FIFTY-ONE OF  THIS  CHAPTER,  SECTION
11-1751  OF  THE  ADMINISTRATIVE CODE OF THE CITY OF NEW YORK OR SECTION
92-85 OR 92-105 OF THE CODES AND ORDINANCES OF THE CITY OF  YONKERS.  IT
SHALL  NOT  INCLUDE ANY INFORMATION RETURN REFERRED TO IN SUBSECTION (I)
OF SECTION SIX HUNDRED FIFTY-ONE OF THIS CHAPTER, OR SUBDIVISION (I)  OF
SECTION  11-1751  OF  SUCH CODE, OR SUBDIVISION (G) OF SECTION 92-105 OF
SUCH CODES AND ORDINANCES, OR SECTION SIX HUNDRED  FIFTY-EIGHT  OF  THIS
CHAPTER  OR SECTION 11-1758 OF SUCH CODE OR SECTION 92-111 OF SUCH CODES
AND ORDINANCES, OR ANY EMPLOYER'S RETURN REQUIRED BY SECTION SIX HUNDRED
SEVENTY-FOUR OF THIS CHAPTER OR SECTION 11-1774 OF SUCH CODE.
  S 1809. CORPORATE TAXES; REPEATED FAILURE TO FILE. (A) ANY PERSON WHO,
WITH INTENT TO EVADE PAYMENT OF  ANY  TAX  IMPOSED  UNDER  ARTICLE  NINE
(OTHER THAN UNDER SECTION ONE HUNDRED EIGHTY OR ONE HUNDRED EIGHTY-ONE),
NINE-A,  THIRTEEN,  THIRTY-TWO,  THIRTY-THREE  OR THIRTY-THREE-A OF THIS
CHAPTER, FAILS TO FILE A RETURN OR REPORT FOR THREE CONSECUTIVE  TAXABLE
YEARS SHALL BE GUILTY OF A CLASS E FELONY, PROVIDED THAT SUCH PERSON HAD
AN  UNPAID TAX LIABILITY, IN EXCESS OF THE THRESHOLD AMOUNT WITH RESPECT
TO EACH OF THE THREE CONSECUTIVE TAXABLE YEARS. THE THRESHOLD AMOUNT  IN
THE  CASE  OF A TAXABLE YEAR UNDER ARTICLE NINE-A OF THIS CHAPTER ENDING
AFTER JUNE THIRTIETH, NINETEEN HUNDRED  EIGHTY-NINE  IS  THE  APPLICABLE
FIXED  DOLLAR  MINIMUM PRESCRIBED UNDER PARAGRAPH (D) OF SUBDIVISION ONE
OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.  IN  THE  EVENT  SUCH  FIXED
DOLLAR  MINIMUM  IS  LESS  THAN TWO HUNDRED FIFTY DOLLARS, THE THRESHOLD
AMOUNT IN THE CASE OF SUCH TAXABLE YEAR IS TWO HUNDRED FIFTY DOLLARS. IN
ALL OTHER CASES THE THRESHOLD AMOUNT IS TWO HUNDRED FIFTY DOLLARS.
  (B) IN ANY PROSECUTION FOR A VIOLATION  OF  SUBDIVISION  (A)  OF  THIS
SECTION,  IT  SHALL  BE  A  DEFENSE THAT THE DEFENDANT HAD NO UNPAID TAX
LIABILITY FOR ANY OF THE THREE CONSECUTIVE TAXABLE YEARS.
  (C) AS USED IN THIS SECTION, THE TERMS  "RETURN"  AND  "REPORT"  SHALL
MEAN  A  RETURN OR REPORT REQUIRED UNDER SECTION ONE HUNDRED NINETY-TWO,
TWO HUNDRED ELEVEN, TWO HUNDRED NINETY-FOUR, FOURTEEN HUNDRED SIXTY-TWO,
FIFTEEN HUNDRED FIFTEEN OR FIFTEEN HUNDRED FIFTY-FOUR OF  THIS  CHAPTER.
IT  SHALL  NOT  INCLUDE  ANY RETURN OR REPORT REFERRED TO IN SECTION ONE
HUNDRED NINETY-SEVEN-A, TWO HUNDRED THIRTEEN-A, FOURTEEN  HUNDRED  SIXTY
OR FIFTEEN HUNDRED THIRTEEN OF THIS CHAPTER.
  S  2.  Paragraph (b) of subdivision 3-a of section 170 of the tax law,
as amended by section 1 of subpart C of part V-1 of chapter  57  of  the
laws of 2009, is 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.  TO DISCONTINUE  THE  CONCILIATION

S. 6610                            89                            A. 9710

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,  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. The commissioner shall notify the division of tax
appeals when any person requests a conference or requests to discontinue
such conference.
  S 3. Paragraph (h) of subdivision 3-a of section 170 of the  tax  law,
as added by section 2 of subpart C of part V-1 of chapter 57 of the laws
of 2009, is amended 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
other credential issued under the authority of this chapter EXCLUDING  A
CERTIFICATE  OF  REGISTRATION  OF  A  RETAIL  DEALER  UNDER SECTION FOUR
HUNDRED EIGHTY-A 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 FOR REGISTRATION AS A
RETAIL DEALER UNDER SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER AND 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] THE MAILING of that notice.
  S 4. Paragraphs (a) and (b) of subdivision 2 of section  2008  of  the
tax law, as added by section 3 of subpart C of part V-1 of chapter 57 of
the laws of 2009, are amended to read as follows:
  (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 EXCLUDING A CERTIFICATE OF REGISTRATION OF A RETAIL DEALER UNDER
SECTION  FOUR  HUNDRED  EIGHTY-A  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 FOR
REGISTRATION AS A RETAIL DEALER UNDER SECTION FOUR HUNDRED  EIGHTY-A  OF
THIS  CHAPTER  AND  an  application  to renew a certificate of authority
filed pursuant to paragraph five of subdivision (a) of section one thou-
sand one hundred thirty-four of this chapter  and  any  other  law,  or,
(iii)  the imposition of a fraud penalty under this chapter, must file a
petition with  the  division  of  tax  appeals  within  thirty  days  of
[receipt] THE MAILING 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] A PARTY that delays the expedited hearing

S. 6610                            90                            A. 9710

process will extend the time limitations imposed on the tribunal or  the
administrative  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.
  S 5. Section 1807 of the tax law, as added by section 21 of subpart  I
of  part  V-1  of  chapter 57 of the laws of 2009, is amended to read as
follows:
  S 1807. Aggregation. For purposes of this article,  the  payments  due
and  not paid under A SINGLE 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 6. Section 34 of subpart I of part V-1 of chapter 57 of the laws  of
2009,  amending  the  criminal procedure law, the penal law, and the tax
law relating to creating the offense of "tax fraud act", is  amended  to
read as follows:
  S  34. This act shall take effect immediately and SECTIONS TWO THROUGH
THIRTY-THREE OF THIS ACT SHALL apply to offenses committed on and  after
such effective date.
  S  7.  This  act  shall take effect immediately; provided however that
section one of this act shall apply to offenses committed on  and  after
such effective date.

                                SUBPART B

  Section  1.  Subparagraph  (iv)  of  paragraph 4 of subdivision (b) of
section 1101 of the tax law, as added by chapter 93 of the laws of 1965,
clause (B) as amended by chapter 575 of the laws of 1965 and  as  renum-
bered by chapter 2 of the laws of 1995, is amended to read as follows:
  (iv) (A) The term retail sale does not include:
  [(A)] (I) The transfer of tangible personal property to a corporation,
solely  in  consideration  for  the issuance of its stock, pursuant to a
merger or consolidation effected under the law of New York or any  other
jurisdiction.
  [(B)] (II) The distribution of property by a corporation to its stock-
holders as a liquidating dividend.
  [(C)] (III) The distribution of property by a partnership to its part-
ners in whole or partial liquidation.
  [(D)]  (IV)  The transfer of property to a corporation upon its organ-
ization in consideration for the issuance of its stock.
  [(E)] (V) The contribution of property to a partnership  in  consider-
ation for a partnership interest therein.
  (B)  FOR AN EXCEPTION APPLICABLE TO THIS SUBPARAGRAPH, SEE SUBDIVISION
(Q) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.
  S 2. Paragraph 17 of subdivision (b) of section 1101 of the  tax  law,
as  amended  by section 1 of part N-1 of chapter 57 of the laws of 2009,
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 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,  offi-
cers,  members,  partners,  managers or directors of affiliated persons.
Persons are affiliated persons with respect to each other where  one  of

S. 6610                            91                            A. 9710

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 affil-
iated  persons  with  respect  to  each other.   FOR AN EXCEPTION TO THE
EXCLUSIONS FROM THE DEFINITION OF "RETAIL SALE" APPLICABLE TO  AIRCRAFT,
SEE SUBDIVISION (Q) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.
  S  3.  Section 1111 of the tax law is amended by adding a new subdivi-
sion (q) to read as follows:
  (Q) (1) THE EXCLUSIONS FROM THE DEFINITION OF RETAIL SALE IN  SUBPARA-
GRAPH  (IV)  OF  PARAGRAPH  FOUR  OF  SUBDIVISION  (B) OF SECTION ELEVEN
HUNDRED ONE OF THIS ARTICLE SHALL NOT APPLY TO TRANSFERS, DISTRIBUTIONS,
OR CONTRIBUTIONS OF AN AIRCRAFT OR VESSEL, EXCEPT WHERE, IN THE CASE  OF
THE  EXCLUSION IN SUBCLAUSE (I) OF CLAUSE (A) OF SUCH SUBPARAGRAPH (IV),
THE TWO CORPORATIONS TO BE MERGED OR  CONSOLIDATED  ARE  NOT  AFFILIATED
PERSONS  WITH  RESPECT TO EACH OTHER.  FOR PURPOSES OF THIS SUBDIVISION,
CORPORATIONS ARE AFFILIATED PERSONS WITH RESPECT TO EACH OTHER WHERE (I)
MORE THAN FIVE PERCENT OF THEIR COMBINED SHARES ARE OWNED BY MEMBERS  OF
THE  SAME  FAMILY,  AS  DEFINED  BY  PARAGRAPH FOUR OF SUBSECTION (C) OF
SECTION TWO HUNDRED SIXTY-SEVEN OF THE INTERNAL REVENUE CODE OF NINETEEN
HUNDRED EIGHTY-SIX; (II) ONE OF THE CORPORATIONS HAS AN OWNERSHIP INTER-
EST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN THE OTHER;
OR (III) ANOTHER PERSON OR A GROUP OF OTHER PERSONS THAT ARE  AFFILIATED
PERSONS  WITH  RESPECT  TO EACH OTHER HOLD AN OWNERSHIP INTEREST OF MORE
THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN  EACH  OF  THE  CORPO-
RATIONS.
  (2)  NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, IN RELATION TO ANY
TRANSFER, DISTRIBUTION, OR CONTRIBUTION OF AN AIRCRAFT  OR  VESSEL  THAT
QUALIFIES AS A RETAIL SALE AS A RESULT OF PARAGRAPH ONE OF THIS SUBDIVI-
SION, THE SALES TAX IMPOSED BY SUBDIVISION (A) OF SECTION ELEVEN HUNDRED
FIVE  OF  THIS  PART  SHALL  BE COMPUTED BASED ON THE PRICE AT WHICH THE
SELLER PURCHASED THE TANGIBLE PERSONAL PROPERTY, PROVIDED THAT WHERE THE
SELLER OR PURCHASER AFFIRMATIVELY SHOWS THAT THE SELLER OWNED THE  PROP-
ERTY  FOR  SIX  MONTHS  PRIOR  TO  MAKING  THE TRANSFER, DISTRIBUTION OR
CONTRIBUTION COVERED BY PARAGRAPH ONE OF THIS SUBDIVISION, SUCH AIRCRAFT
OR VESSEL SHALL BE TAXED ON THE BASIS OF THE CURRENT MARKET VALUE OF THE
AIRCRAFT OR VESSEL AT  THE  TIME  OF  THAT  TRANSFER,  DISTRIBUTION,  OR
CONTRIBUTION.  FOR  THE  PURPOSES OF THE PRIOR SENTENCE, "CURRENT MARKET
VALUE" SHALL NOT EXCEED THE COST OF THE AIRCRAFT OR VESSEL. SEE SUBDIVI-
SION (B) OF THIS SECTION FOR A SIMILAR RULE ON THE  COMPUTATION  OF  ANY
COMPENSATING  USE  TAX DUE UNDER SECTION ELEVEN HUNDRED TEN OF THIS PART
ON SUCH TRANSFERS, DISTRIBUTIONS, OR CONTRIBUTIONS.
  (3) A PURCHASER OF AN AIRCRAFT OR VESSEL COVERED BY PARAGRAPH  ONE  OF
THIS  SUBDIVISION  WILL  BE  ENTITLED  TO A REFUND OR CREDIT AGAINST THE
SALES OR COMPENSATING USE TAX DUE AS A RESULT OF  A  TRANSFER,  DISTRIB-
UTION,  OR  CONTRIBUTION OF SUCH AIRCRAFT OR VESSEL IN THE AMOUNT OF ANY
SALES OR USE TAX PAID TO THIS STATE OR ANY OTHER STATE ON  THE  SELLER'S
PURCHASE OR USE OF THE AIRCRAFT OR VESSEL SO TRANSFERRED, DISTRIBUTED OR
CONTRIBUTED,  BUT  NOT  TO  EXCEED THE TAX DUE ON THE TRANSFER, DISTRIB-
UTION, OR CONTRIBUTION OF THE AIRCRAFT OR VESSEL OR ON  THE  PURCHASER'S
USE  IN  THE STATE OF THE AIRCRAFT OR VESSEL SO TRANSFERRED, DISTRIBUTED
OR CONTRIBUTED.  AN APPLICATION FOR A REFUND OR CREDIT UNDER THIS SUBDI-
VISION MUST BE FILED AND SHALL BE IN SUCH FORM AS THE  COMMISSIONER  MAY
PRESCRIBE. WHERE AN APPLICATION FOR CREDIT HAS BEEN FILED, THE APPLICANT
MAY  IMMEDIATELY  TAKE SUCH CREDIT ON THE RETURN WHICH IS DUE COINCIDENT
WITH OR IMMEDIATELY SUBSEQUENT TO THE TIME THE APPLICATION FOR CREDIT IS

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FILED. HOWEVER, THE TAKING OF THE CREDIT ON THE RETURN SHALL  BE  DEEMED
TO BE PART OF THE APPLICATION FOR CREDIT.  PROVIDED THAT THE COMMISSION-
ER  MAY,  IN  HIS  OR  HER DISCRETION AND NOTWITHSTANDING ANY OTHER LAW,
WAIVE  THE  APPLICATION  REQUIREMENT  FOR  ANY OR ALL CLASSES OF PERSONS
WHERE THE AMOUNT OF THE CREDIT OR REFUND IS EQUAL TO THE AMOUNT  OF  THE
TAX  DUE  FROM THE PURCHASER.   THE PROVISIONS OF SUBDIVISIONS (A), (B),
AND (C) OF SECTION ELEVEN HUNDRED  THIRTY-NINE  OF  THIS  ARTICLE  SHALL
APPLY  TO  APPLICATIONS  FOR REFUND OR CREDIT UNDER THIS SUBDIVISION. NO
INTEREST SHALL BE ALLOWED OR PAID ON ANY REFUND MADE OR  CREDIT  ALLOWED
UNDER THIS SUBDIVISION. IF A REFUND IS GRANTED OR A CREDIT ALLOWED UNDER
THIS  PARAGRAPH,  THE  SELLER  OR  PURCHASER SHALL NOT BE ELIGIBLE FOR A
REFUND OR CREDIT PURSUANT TO SUBDIVISION SEVEN OF SECTION ELEVEN HUNDRED
EIGHTEEN OF THIS ARTICLE WITH REGARD TO THE SAME PURCHASE OR USE.
  S 4. Subdivision 2 of section 1118 of  the  tax  law,  as  amended  by
section  2  of part N-1 of chapter 57 of the laws of 2009, 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
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.  FOR AN EXCEPTION TO THE EXCLUSIONS FROM THE
DEFINITION OF "RETAIL SALE" APPLICABLE  TO  AIRCRAFT  AND  VESSELS,  SEE
SUBDIVISION (Q) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.
  S  5.  This  act shall take effect on June 1, 2010, 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, provided that sales or use tax paid on the seller's purchase or
use of the aircraft or vessel transferred,  distributed  or  contributed
may  be refunded or credited as authorized by the new subdivision (q) of
section 1111 of the tax law, as added by  section  three  of  this  act,
regardless  of  the  date  on  which  the  seller  purchased or used the
aircraft or vessel.

                                SUBPART C

  Section 1. Section 874 of the general  municipal  law  is  amended  by
adding a new subdivision 9 to read as follows:

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  (9)  WITHIN  THIRTY  DAYS  OF  THE  DATE  THAT THE AGENCY DESIGNATES A
PROJECT OPERATOR OR OTHER PERSON TO ACT  AS  AGENT  OF  THE  AGENCY  FOR
PURPOSES  OF  PROVIDING FINANCIAL ASSISTANCE CONSISTING OF ANY SALES AND
COMPENSATING USE TAX EXEMPTION TO SUCH PERSON, THE AGENCY SHALL  FILE  A
STATEMENT  WITH THE DEPARTMENT OF TAXATION AND FINANCE RELATING THERETO,
ON A FORM AND IN SUCH MANNER AS IS PRESCRIBED  BY  THE  COMMISSIONER  OF
TAXATION  AND FINANCE, IDENTIFYING EACH SUCH AGENT SO NAMED BY THE AGEN-
CY, SETTING FORTH THE TAXPAYER IDENTIFICATION NUMBER OF EACH SUCH AGENT,
GIVING A BRIEF DESCRIPTION OF THE PROPERTY AND/OR SERVICES  INTENDED  TO
BE  EXEMPTED  FROM  SUCH TAXES AS A RESULT OF SUCH APPOINTMENT AS AGENT,
INDICATING THE AGENCY'S ROUGH ESTIMATE OF  THE  VALUE  OF  THE  PROPERTY
AND/OR  SERVICES  TO WHICH SUCH APPOINTMENT AS AGENT RELATES, INDICATING
THE DATE WHEN SUCH DESIGNATION AS AGENT BECAME EFFECTIVE AND  INDICATING
THE DATE UPON WHICH SUCH DESIGNATION AS AGENT SHALL CEASE.
  S  2.  Section 1963 of the public authorities law is amended by adding
two new subdivisions 3 and 4 to read as follows:
  3. AGENTS OF THE AUTHORITY AND PROJECT OPERATORS SHALL ANNUALLY FILE A
STATEMENT WITH THE DEPARTMENT OF TAXATION AND FINANCE, ON A FORM AND  IN
SUCH  A  MANNER  AS  IS  PRESCRIBED  BY THE COMMISSIONER OF TAXATION AND
FINANCE, OF THE VALUE OF ALL SALES AND USE  TAX  EXEMPTIONS  CLAIMED  BY
SUCH  AGENTS  OR  AGENTS OF SUCH AGENTS OR PROJECT OPERATORS, INCLUDING,
BUT NOT LIMITED TO, CONSULTANTS OR  SUBCONTRACTORS  OF  SUCH  AGENTS  OR
PROJECT OPERATORS, UNDER THE AUTHORITY GRANTED PURSUANT TO THIS SECTION.
THE  PENALTY  FOR FAILURE TO FILE SUCH STATEMENT SHALL BE THE REMOVAL OF
THE AUTHORITY TO ACT AS AN AGENT OF THE AUTHORITY OR AS A PROJECT OPERA-
TOR.
  4. WITHIN THIRTY DAYS OF THE DATE  THAT  THE  AUTHORITY  DESIGNATES  A
PROJECT  OPERATOR  OR  OTHER PERSON TO ACT AS AGENT OF THE AUTHORITY FOR
PURPOSES OF PROVIDING FINANCIAL ASSISTANCE CONSISTING OF ANY  SALES  AND
COMPENSATING  USE  TAX EXEMPTION TO SUCH PERSON, THE AGENCY SHALL FILE A
STATEMENT WITH THE DEPARTMENT OF TAXATION AND FINANCE RELATING  THERETO,
ON  A  FORM  AND  IN SUCH MANNER AS IS PRESCRIBED BY THE COMMISSIONER OF
TAXATION AND FINANCE, IDENTIFYING  EACH  SUCH  AGENT  SO  NAMED  BY  THE
AUTHORITY, SETTING FORTH THE TAXPAYER IDENTIFICATION NUMBER OF EACH SUCH
AGENT,  GIVING  A  BRIEF  DESCRIPTION  OF  THE  PROPERTY AND/OR SERVICES
INTENDED TO BE EXEMPTED FROM SUCH TAXES AS A RESULT OF SUCH  APPOINTMENT
AS  AGENT, INDICATING THE AUTHORITY'S ROUGH ESTIMATE OF THE VALUE OF THE
PROPERTY AND/OR SERVICES TO WHICH SUCH  APPOINTMENT  AS  AGENT  RELATES,
INDICATING  THE DATE WHEN SUCH DESIGNATION AS AGENT BECAME EFFECTIVE AND
INDICATING THE DATE UPON WHICH SUCH DESIGNATION AS AGENT SHALL CEASE.
  S 3. Section 2326 of the public authorities law is amended  by  adding
two new subdivisions 3 and 4 to read as follows:
  3. AGENTS OF THE AUTHORITY AND PROJECT OPERATORS SHALL ANNUALLY FILE A
STATEMENT  WITH THE DEPARTMENT OF TAXATION AND FINANCE, ON A FORM AND IN
SUCH A MANNER AS IS PRESCRIBED  BY  THE  COMMISSIONER  OF  TAXATION  AND
FINANCE,  OF  THE  VALUE  OF ALL SALES AND USE TAX EXEMPTIONS CLAIMED BY
SUCH AGENTS OR AGENTS OF SUCH AGENTS OR  PROJECT  OPERATORS,  INCLUDING,
BUT  NOT  LIMITED  TO,  CONSULTANTS  OR SUBCONTRACTORS OF SUCH AGENTS OR
PROJECT OPERATORS, UNDER THE AUTHORITY GRANTED PURSUANT TO THIS SECTION.
THE PENALTY FOR FAILURE TO FILE SUCH STATEMENT SHALL BE THE  REMOVAL  OF
THE AUTHORITY TO ACT AS AN AGENT OF THE AUTHORITY OR AS A PROJECT OPERA-
TOR.
  4.  WITHIN  THIRTY  DAYS  OF  THE DATE THAT THE AUTHORITY DESIGNATES A
PROJECT OPERATOR OR OTHER PERSON TO ACT AS AGENT OF  THE  AUTHORITY  FOR
PURPOSES  OF  PROVIDING FINANCIAL ASSISTANCE CONSISTING OF ANY SALES AND
COMPENSATING USE TAX EXEMPTION TO SUCH PERSON, THE AGENCY SHALL  FILE  A

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STATEMENT  WITH THE DEPARTMENT OF TAXATION AND FINANCE RELATING THERETO,
ON A FORM AND IN SUCH MANNER AS IS PRESCRIBED  BY  THE  COMMISSIONER  OF
TAXATION  AND  FINANCE,  IDENTIFYING  EACH  SUCH  AGENT  SO NAMED BY THE
AUTHORITY, SETTING FORTH THE TAXPAYER IDENTIFICATION NUMBER OF EACH SUCH
AGENT,  GIVING  A  BRIEF  DESCRIPTION  OF  THE  PROPERTY AND/OR SERVICES
INTENDED TO BE EXEMPTED FROM SUCH TAXES AS A RESULT OF SUCH  APPOINTMENT
AS  AGENT, INDICATING THE AUTHORITY'S ROUGH ESTIMATE OF THE VALUE OF THE
PROPERTY AND/OR SERVICES TO WHICH SUCH  APPOINTMENT  AS  AGENT  RELATES,
INDICATING  THE DATE WHEN SUCH DESIGNATION AS AGENT BECAME EFFECTIVE AND
INDICATING THE DATE UPON WHICH SUCH DESIGNATION AS AGENT SHALL CEASE.
  S 4. This act shall take effect immediately, provided, however, that:
  (a) section one of this act shall be deemed to have been in full force
and effect on and after January 31, 2008;
  (b) sections two and three of this act shall be deemed to have been in
full force and effect on and after January 1, 2010; and
  (c) any statement of an industrial development agency or authority  to
the department of taxation and finance required by this act with respect
to  having  appointed  an agent or project operator before the effective
date of this act shall be deemed timely if it is filed within 90 days of
such date.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included herein.
  S  3.  This  act shall take effect immediately provided, however, that
the applicable effective date of Subparts A through C of this act  shall
be as specifically set forth in the last section of such Subparts.

                                 PART AA

  Section  1.  Paragraph  (a)  of  subdivision  1 of section 1003 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  1
of  part  L-1  of  chapter 57 of the laws of 2009, is amended to read as
follows:
  (a) Any  racing  association  or  corporation  or  regional  off-track
betting  corporation,  authorized  to conduct pari-mutuel wagering under
this chapter, desiring to display the simulcast of horse races on  which
pari-mutuel  betting shall be permitted in the manner and subject to the
conditions provided for in this article may apply to  the  board  for  a
license so to do. Applications for licenses shall be in such form as may
be  prescribed  by the board and shall contain such information or other
material or evidence as the board  may  require.  No  license  shall  be
issued  by the board authorizing the simulcast transmission of thorough-
bred races from a track located in Suffolk  county.  The  fee  for  such
licenses  shall  be five hundred dollars per simulcast facility per year
payable by the licensee to the board for deposit into the general  fund.
Except  as  provided herein, the board shall not approve any application
to conduct simulcasting into individual or group  residences,  homes  or
other areas for the purposes of or in connection with pari-mutuel wager-
ing.  The board may approve simulcasting into residences, homes or other
areas to be conducted jointly by one or more regional off-track  betting

S. 6610                            95                            A. 9710

corporations and one or more of the following: a franchised corporation,
thoroughbred racing corporation or a harness racing corporation or asso-
ciation;  provided  (i) the simulcasting consists only of those races on
which  pari-mutuel  betting is authorized by this chapter at one or more
simulcast facilities for  each  of  the  contracting  off-track  betting
corporations  which shall include wagers made in accordance with section
one thousand fifteen, one thousand sixteen and one thousand seventeen of
this article; provided further that the  contract  provisions  or  other
simulcast  arrangements  for  such  simulcast  facility shall be no less
favorable than those in effect on January first, two thousand five; (ii)
that each off-track betting corporation  having  within  its  geographic
boundaries  such residences, homes or other areas technically capable of
receiving the simulcast signal shall be a contracting party;  (iii)  the
distribution  of  revenues  shall be subject to contractual agreement of
the parties except that statutory payments to  non-contracting  parties,
if  any,  may  not be reduced; provided, however, that nothing herein to
the contrary shall prevent a track  from  televising  its  races  on  an
irregular basis primarily for promotional or marketing purposes as found
by  the board. For purposes of this paragraph, the provisions of section
one thousand thirteen of this article shall  not  apply.  Any  agreement
authorizing  an  in-home simulcasting experiment commencing prior to May
fifteenth, nineteen hundred ninety-five, may,  and  all  its  terms,  be
extended  until  June  thirtieth,  two  thousand [ten] ELEVEN; provided,
however, that any party to such agreement may elect  to  terminate  such
agreement  upon  conveying  written  notice to all other parties of such
agreement at least forty-five days prior to the effective  date  of  the
termination,  via  registered  mail. Any party to an agreement receiving
such notice of an intent to terminate, may request the board to  mediate
between  the parties new terms and conditions in a replacement agreement
between the parties as will permit continuation of an in-home experiment
until June thirtieth, two thousand [ten] ELEVEN;  and  (iv)  no  in-home
simulcasting  in  the  thoroughbred special betting district shall occur
without the approval of the regional thoroughbred track.
  S 2. Subparagraph (iii) of paragraph d of  subdivision  3  of  section
1007 of the racing, pari-mutuel wagering and breeding law, as amended by
section  2  of part L-1 of chapter 57 of the laws of 2009, is amended to
read as follows:
  (iii) Of the sums retained by a receiving track located in Westchester
county on races received from a franchised corporation, for  the  period
commencing January first, two thousand eight and continuing through June
thirtieth,  two  thousand  [ten] ELEVEN, the amount used exclusively for
purses to be awarded at races conducted by such receiving track shall be
computed as follows: of the sums so retained, two and  one-half  percent
of  the  total pools. Such amount shall be increased or decreased in the
amount of fifty percent of the difference in  total  commissions  deter-
mined  by  comparing  the total commissions available after July twenty-
first, nineteen hundred ninety-five to the total commissions that  would
have  been  available to such track prior to July twenty-first, nineteen
hundred ninety-five.
  S 3. The opening paragraph of subdivision 1 of  section  1014  of  the
racing,  pari-mutuel  wagering and breeding law, as amended by section 3
of part L-1 of chapter 57 of the laws of 2009, is  amended  to  read  as
follows:
  The  provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country  on
any day during which a franchised corporation is conducting a race meet-

S. 6610                            96                            A. 9710

ing  in  Saratoga  county  at Saratoga thoroughbred racetrack until June
thirtieth, two thousand [ten] ELEVEN and on any day regardless of wheth-
er or not a franchised corporation is conducting a race meeting in Sara-
toga county at Saratoga thoroughbred racetrack after June thirtieth, two
thousand  [ten] ELEVEN. On any day on which a franchised corporation has
not scheduled a racing program but  a  thoroughbred  racing  corporation
located  within  the state is conducting racing, every off-track betting
corporation branch office and every simulcasting  facility  licensed  in
accordance  with  section  one  thousand seven (that have entered into a
written agreement with such facility's representative horsemen's  organ-
ization,  as approved by the board), one thousand eight, or one thousand
nine of this article shall be authorized to accept  wagers  and  display
the  live  simulcast  signal from thoroughbred tracks located in another
state or foreign country subject to the following provisions:
  S 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
and breeding law, as amended by section 4 of part L-1 of chapter  57  of
the laws of 2009, is amended to read as follows:
  1.  The  provisions  of  this section shall govern the simulcasting of
races conducted at harness tracks located in another  state  or  country
during  the period July first, nineteen hundred ninety-four through June
thirtieth, two thousand [ten] ELEVEN.  This section shall supersede  all
inconsistent provisions of this chapter.
  S  5.  The  opening  paragraph of subdivision 1 of section 1016 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  5
of  part  L-1  of  chapter 57 of the laws of 2009, is amended to read as
follows:
  The provisions of this section shall govern the simulcasting of  races
conducted  at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is not conducting  a  race
meeting in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth,  two  thousand [ten] ELEVEN.   Every off-track betting corpo-
ration branch office and every simulcasting facility licensed in accord-
ance with section one thousand seven that have entered  into  a  written
agreement with such facility's representative horsemen's organization as
approved  by  the board, one thousand eight or one thousand nine of this
article shall be authorized to accept wagers and display the live  full-
card  simulcast signal of thoroughbred tracks (which may include quarter
horse or mixed meetings provided that all such wagering  on  such  races
shall be construed to be thoroughbred races) located in another state or
foreign country, subject to the following provisions; provided, however,
no  such written agreement shall be required of a franchised corporation
licensed in accordance with section one thousand seven of this article:
  S 6. The opening paragraph of section 1018 of the racing,  pari-mutuel
wagering  and breeding law, as amended by section 6 of part L-1 of chap-
ter 57 of the laws of 2009, is amended to read as follows:
  Notwithstanding any other provision of this chapter,  for  the  period
July  twenty-fifth, two thousand one through September eighth, two thou-
sand [nine] TEN, when a franchised  corporation  is  conducting  a  race
meeting  within  the  state  at  Saratoga  Race  Course, every off-track
betting  corporation  branch  office  and  every  simulcasting  facility
licensed in accordance with section one thousand seven (that has entered
into  a written agreement with such facility's representative horsemen's
organization as approved by the board), one thousand eight or one  thou-
sand  nine  of  this  article  shall  be authorized to accept wagers and
display the live simulcast signal from thoroughbred  tracks  located  in
another  state, provided that such facility shall accept wagers on races

S. 6610                            97                            A. 9710

run at all in-state thoroughbred  tracks  which  are  conducting  racing
programs subject to the following provisions; provided, however, no such
written agreement shall be required of a franchised corporation licensed
in accordance with section one thousand seven of this article.
  S  7.  Section  32  of  chapter  281 of the laws of 1994, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting, as amended by section 7 of part L-1 of chapter 57  of  the
laws of 2009, is amended to read as follows:
  S  32.  This act shall take effect immediately and the pari-mutuel tax
reductions in section six  of  this  act  shall  expire  and  be  deemed
repealed  on  July  1,  [2010]  2011;  provided,  however,  that nothing
contained herein shall be deemed to affect the  application,  qualifica-
tion,  expiration,  or  repeal  of  any  provision of law amended by any
section of this act, and such provisions shall be applied  or  qualified
or  shall  expire  or be deemed repealed in the same manner, to the same
extent and on the same date as the case may be as otherwise provided  by
law;  provided  further, however, that sections twenty-three and twenty-
five of this act shall remain in full force and effect only until May 1,
1997 and at such time shall be deemed to be repealed.
  S 8. Section 54 of chapter 346 of  the  laws  of  1990,  amending  the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting  and the imposition of certain taxes, as amended by section
8 of part L-1 of chapter 57 of the laws of 2009, is amended to  read  as
follows:
  S  54.  This  act  shall  take  effect immediately; provided, however,
sections three through twelve of this act shall take effect  on  January
1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
ing  law, as added by section thirty-eight of this act, shall expire and
be deemed repealed on July 1, [2010] 2011; and section eighteen of  this
act  shall take effect on July 1, 2008 and sections fifty-one and fifty-
two of this act shall take effect as of the same date as chapter 772  of
the laws of 1989 took effect.
  S  9.  Paragraph  (a)  of  subdivision 1 of section 238 of the racing,
pari-mutuel wagering and breeding law, as amended by section 9  of  part
L-1 of chapter 57 of the laws of 2009, is amended to read as follows:
  (a)  The  franchised  corporation  authorized  under  this  chapter to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute all sums deposited in any pari-mutuel pool to the holders  of
winning  tickets therein, provided such tickets be presented for payment
before April first of the year following the  year  of  their  purchase,
less  an  amount  which  shall be established and retained by such fran-
chised corporation of between sixteen to seventeen  per  centum  of  the
total  deposits in pools resulting from on-track regular bets, and eigh-
teen and one-half to twenty-one per centum  of  the  total  deposits  in
pools resulting from on-track multiple bets and twenty-six per centum of
the  total  deposits  in  pools  resulting from on-track exotic bets and
sixteen to thirty-six per centum of the total deposits in pools  result-
ing  from  on-track  super exotic bets, and twenty-six to thirty-six per
centum when  such  on-track  super  exotic  betting  pools  are  carried
forward,  plus  the  breaks.  The  retention  rate  to be established is
subject to the prior approval of the racing  and  wagering  board.  Such
rate may not be changed more than once per calendar quarter to be effec-
tive  on  the  first  day  of  the calendar quarter.   "Exotic bets" and
"multiple bets" shall have  the  meanings  set  forth  in  section  five
hundred  nineteen  of  this  chapter. "Super exotic bets" shall have the
meaning set forth in section three hundred one of  this  chapter.    For

S. 6610                            98                            A. 9710

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

S. 6610                            99                            A. 9710

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

                                 PART BB

S. 6610                            100                           A. 9710

  Section 1. Subsection (a) of section 951 of the tax law, as amended by
section  1  of  part A of chapter 407 of the laws of 1999, is amended to
read as follows:
  (a) Dates. For purposes of this article, any reference to the internal
revenue code means the United States Internal Revenue Code of 1986, with
all amendments enacted on or before July twenty-second, nineteen hundred
ninety-eight,  and, unless specifically provided otherwise in this arti-
cle, any reference to December thirty-first, nineteen  hundred  seventy-
six  or  January  first, nineteen hundred seventy-seven contained in the
provisions of such code which are applicable to the determination of the
tax imposed by this article shall be read as a reference to June thirti-
eth, nineteen hundred seventy-eight  or  July  first,  nineteen  hundred
seventy-eight,  respectively. Notwithstanding the foregoing, the unified
credit against the estate tax provided in section two  thousand  ten  of
the  internal  revenue  code shall, for purposes of this article, be the
amount [allowed by such section under  the  applicable  federal  law  in
effect on the decedent's date of death. Provided, however, the amount of
such  credit allowable for purposes of this article shall not exceed the
amount] allowable as if the federal [unified credit did not  exceed  the
tax due under section two thousand one of the internal revenue code on a
federal  taxable estate of] APPLICABLE EXCLUSION AMOUNT WERE one million
dollars.
  S 2. This act shall take effect immediately and shall apply to estates
of decedents dying on or after January 1, 2010.

                                 PART CC

  Section 1. The article heading of article 29-A  of  the  tax  law,  as
added  by  section  1  of  part  E of chapter 25 of the laws of 2009, is
amended to read as follows:
               [TAX ON] MEDALLION TAXICAB [RIDES] OWNERS TAX
          IN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT
  S 2. Subdivisions (d), (e), (f) and (h) of section  1280  of  the  tax
law,  as added by section 1 of part E of chapter 25 of the laws of 2009,
are amended and two new subdivisions (i) and (j) are added  to  read  as
follows:
  (d)  "Taxicab"  means a motor vehicle [carrying passengers for hire in
the city, duly] licensed by the [taxi and limousine  commission  of  the
city]  TLC  TO  CARRY  PASSENGERS FOR HIRE and [permitted] AUTHORIZED to
accept hails from prospective passengers in the street.
  (e) ["Taxicab ride" means a taxicab  ride  provided  to  one  or  more
passengers  to  a  given destination] "TLC" MEANS THE TAXI AND LIMOUSINE
COMMISSION OF THE CITY.
  (f) "Taxicab owner" OR "OWNER" means a person [owning  a  taxicab  and
shall  include  a  purchaser under a reserve title contract, conditional
sales agreement or vendor's lien agreement. In addition, an owner  shall
be deemed to include any lessee, licensee or bailee having the exclusive
use  of  a  taxicab,  under a lease or otherwise, for a period of thirty
days or more] LICENSED BY  THE  TLC  TO  OWN  AND  OPERATE  A  MEDALLION
TAXICAB.
  (h)  ["Taximeter"  shall  include  any device which, when affixed to a
motor vehicle, is so constructed as to operate as a fare indicator and a
time and distance register for the purpose of automatically  determining
the charge for which a passenger becomes liable] "TAXICAB LICENSE" MEANS
THE  AUTHORITY  GRANTED  BY  THE TLC TO AN OWNER TO OPERATE A DESIGNATED
VEHICLE AS A TAXICAB IN THE CITY.

S. 6610                            101                           A. 9710

  (I) "MEDALLION" MEANS A PLATE  ISSUED  BY  THE  TLC  AS  THE  PHYSICAL
EVIDENCE  OF A TAXICAB LICENSE, AND AFFIXED TO THE OUTSIDE OF SUCH TAXI-
CAB.
  (J)  "MEDALLION TAXICAB" MEANS A TAXICAB TO WHICH A MEDALLION HAS BEEN
AFFIXED IN ACCORDANCE WITH APPLICABLE LAW AND REGULATIONS.
  S 3. Section 1281 of the tax law, as added by section 1 of part  E  of
chapter 25 of the laws of 2009, is amended to read as follows:
  S  1281.  Imposition  of  tax. In addition to any other tax imposed by
this chapter or other law, there is  hereby  imposed  on  every  taxicab
owner  a  tax  ON  THE USE OF A MEDALLION TAXICAB IN THE CITY, OR ON THE
PRIVILEGE OF USING THE PUBLIC HIGHWAYS OR STREETS OF THE CITY  FOR  SUCH
MEDALLION  TAXICAB,  OR  ON  BOTH  SUCH  USE AND SUCH PRIVILEGE. THE TAX
IMPOSED BY THIS SECTION SHALL BE AT  THE  RATE  of  ONE  THOUSAND  SEVEN
HUNDRED  fifty  [cents per taxicab ride on every ride that originates in
the city and terminates anywhere within the  territorial  boundaries  of
the MCTD] DOLLARS PER QUARTERLY FILING PERIOD FOR EACH MEDALLION TAXICAB
THAT THE TLC LICENSES SUCH PERSON TO OPERATE, WHETHER OR NOT OPERATED.
  S  4.  Section 1282 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1282. Presumption of taxability.  For  the  purpose  of  the  proper
administration of this article and to prevent evasion of the tax imposed
by  this  article,  it  shall  be presumed that every taxicab [ride that
originates in the city is] OWNER AND EVERY USE OF A MEDALLION TAXICAB IN
THE CITY ARE subject to the tax imposed by this article WITH RESPECT  TO
EVERY  MEDALLION  TAXICAB  LICENSED  TO  SUCH  OWNER  TO OPERATE.   This
presumption shall prevail until the contrary is proven, and  the  burden
of  proving  the  contrary shall be on [the person liable for payment of
the tax] SUCH OWNER.
  S 5. Section 1283 of the tax law, as added by section 1 of part  E  of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1283. [Special] LIABILITY FOR TAX, SPECIAL provisions. Notwithstand-
ing  any  [provisions]  PROVISION of [this article] LAW to the contrary:
(a) [If a taxicab owner subject to the tax imposed by this article leas-
es, rents or otherwise furnishes a taxicab to an  unrelated  person  who
uses the taxicab to provide taxicab rides originating in the city, then:
(1)  the owner is deemed to provide such taxicab rides during the day or
other period that the unrelated person uses the taxicab to provide  such
rides;  (2)  the  tax  imposed  by this article shall be imposed on such
owner; and (3) the owner must pay the tax imposed by this article on the
number of rides subject to such tax provided by  such  unrelated  person
during the day or other period.] ANY PERSON THAT THE TLC HAS LICENSED AS
THE  TAXICAB  OWNER  AS  OF THE END OF EACH QUARTERLY PERIOD FOR WHICH A
RETURN IS REQUIRED TO BE FILED SHALL BE LIABLE FOR THE  TAX  IMPOSED  BY
THIS ARTICLE FOR THAT QUARTER, WHETHER OR NOT THAT PERSON IS THE TAXICAB
OWNER  FOR THE ENTIRE QUARTER. IF A TAXICAB OWNER TRANSFERS OWNERSHIP OF
A MEDALLION TO ANOTHER PERSON, THE TRANSFEREE SHALL BE  LIABLE  FOR  THE
TAX  IMPOSED BY THIS ARTICLE WITH RESPECT TO USE OF THE TAXICAB TO WHICH
THAT MEDALLION RELATES FOR THE ENTIRE QUARTERLY  PERIOD  IN  WHICH  SUCH
TRANSFER OCCURS.
  (b)  Notwithstanding  any law to the contrary: (1) Although the tax is
imposed on the taxicab owner, the [taxicab owner must pass  along]  CITY
OR  THE  TLC  SHALL  ADOPT  OR AMEND ORDINANCES OR REGULATIONS AND SHALL
INCREASE MAXIMUM TAXICAB VEHICLE LEASE RATE OR RENTAL CHARGE  (INCLUDING
ANY CHARGE ATTRIBUTABLE TO THE RENTAL OF THE MEDALLION) AND TAXICAB TRIP
FARES  TO  ENSURE  THAT  the economic incidence of the tax IS ULTIMATELY
PASSED THROUGH to [the passenger] PASSENGERS, SUCH AS by [adjusting  the

S. 6610                            102                           A. 9710

fare  for  the  ride, and the] INCREASING TAXICAB TRIP FARES AND ALSO BY
INCREASING THE AMOUNT OF ANY SUCH MAXIMUM LEASE RATE  OR  RENTAL  CHARGE
(INCLUDING  ANY CHARGE ATTRIBUTABLE TO THE RENTAL OF THE MEDALLION) MADE
BY  A  TAXICAB  OWNER OR TAXICAB VEHICLE OWNER, AS THE CASE MAY BE, TO A
DRIVER FOR THE USE OF THE TAXICAB VEHICLE. THE  passing  along  of  such
economic  incidence  OF  THE  TAX  IMPOSED  BY  THIS  ARTICLE may not be
construed by any court or administrative body as  imposing  the  tax  on
[the]  ANY  person  [or entity that pays the fare for a ride] OTHER THAN
THE TAXICAB OWNER.  [A] THE city [that  regulates  taxicabs  or  taxicab
fares]  OR THE TLC must adjust the fares AND ANY SUCH MAXIMUM LEASE RATE
OR RENTAL CHARGE (INCLUDING ANY CHARGE ATTRIBUTABLE TO THE RENTAL OF THE
MEDALLION) authorized to include therein the PASS-THROUGH OF THE ECONOM-
IC INCIDENCE OF THE tax imposed by this article, as the rate of such tax
may from time to time change, and must timely require that any taximeter
in a taxicab used to  provide  rides  THAT  ORIGINATE  in  the  city  be
adjusted to include the [tax] PASS-THROUGH.
  (2)  A  taxicab owner in such city must timely adjust the taximeter in
any of such person's taxicabs so that it reflects [the  tax  imposed  by
this  article]  SUCH  PASS-THROUGH PRESCRIBED BY THE CITY OR TLC as such
[rate] PASS-THROUGH AMOUNT may from time to time change.
  (3) Neither the failure of such city OR THE TLC to  adjust  fares  nor
the  failure  of  a  taxicab owner OR OTHER PERSON to adjust a taximeter
will relieve any [person] TAXICAB OWNER liable for the  tax  imposed  by
this  article  from  the  obligation to pay such tax timely, [at] IN the
correct [rate] AMOUNT.
  [(c) For purposes of this section, "unrelated person" means  a  person
other  than a related person as defined for purposes of section fourteen
of this chapter.]
  S 6. Section 1284 of the tax law, as added by section 1 of part  E  of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1284. Returns. Every person liable for the tax imposed by this arti-
cle  shall  file  a  return quarterly with the commissioner. Each return
shall show the number of [rides] TAXICABS  in  the  quarter  [for]  WITH
RESPECT  TO which the return is filed, together with such other informa-
tion as the commissioner may  require.  The  returns  required  by  this
section  shall be filed for quarterly periods [ending] COMMENCING on the
[last] FIRST day of March, June, September, and December of  each  year,
and each return shall be filed [within twenty days after the end] ON THE
LAST  DAY  of  the  quarterly period covered thereby. [Every such person
shall also file a return with the commissioner for the period of  Novem-
ber  and  December two thousand nine, by January twentieth, two thousand
ten, containing the information described  above.  If  the  commissioner
deems  it necessary in order to ensure the payment of the tax imposed by
this article, the commissioner may require returns to be made for short-
er periods than prescribed by the foregoing provisions of this  section,
and  upon  such  dates  as  the  commissioner  may specify.] The form of
returns shall be prescribed by the commissioner and shall  contain  such
information as the commissioner may deem necessary for the proper admin-
istration  of this article. The commissioner may require amended returns
to be filed within twenty days after notice and to contain the  informa-
tion  specified  in  the  notice.  The commissioner may require that the
returns be filed electronically.
  S 7. Section 1285 of the tax law, as added by section 1 of part  E  of
chapter 25 of the laws of 2009, is amended to read as follows:
  S  1285.  Payment of tax. Every person required to file a return under
this article shall, at the time  of  filing  such  return,  pay  to  the

S. 6610                            103                           A. 9710

commissioner  the  total  of  all  tax  imposed  by this article, on the
correct number of [rides] TAXICABS WITH RESPECT TO WHICH SUCH PERSON  IS
subject  to tax under this article. The amount so payable to the commis-
sioner  for  the period for which a return is required to be filed shall
be due and payable to the commissioner  on  the  date  limited  for  the
filing of the return for such period, without regard to whether a return
is  filed  or  whether  the  return  which  is filed correctly shows the
correct number of [rides] TAXICABS or the amount of tax due [thereon] ON
SUCH RETURN.  The commissioner may require that the tax  be  paid  elec-
tronically.
  S  8.  Section 1286 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1286. Records to be kept. (A) Every person [required to pay]  LIABLE
FOR any tax imposed by this article shall keep:
  (1) records of every [ride originating] TAXICAB THE PERSON USES in the
city  [and  of  all  amounts paid, charged or due thereon and of the tax
payable thereon], in such form as the commissioner may  require[.  Every
such  person shall also keep a true and complete copy of every contract,
agreement, or arrangement concerning the lease, rental,  or  license  to
use a taxicab for which the person is required to remit the tax on rides
imposed by this article on such person];
  (2) A TRUE AND COMPLETE COPY OF EVERY CONTRACT, AGREEMENT, OR ARRANGE-
MENT  CONCERNING  THE  SALE,  TRANSFER,  OR ASSIGNMENT OF A MEDALLION OR
TAXICAB;
  (3) TRUE AND COMPLETE COPIES OF ANY RECORDS REQUIRED TO BE KEPT BY THE
TLC; AND
  (4) SUCH OTHER RECORDS  AND  INFORMATION  THAT  THE  COMMISSIONER  MAY
REQUIRE TO PERFORM HIS OR HER DUTIES UNDER THIS ARTICLE.
  [Such]  (B)  THE  records REQUIRED TO BE KEPT BY THIS SECTION shall be
available for inspection and examination at any time upon demand by  the
commissioner or the commissioner's duly authorized agent or employee and
shall  be preserved for a period of three years, except that the commis-
sioner may consent to  their  destruction  within  that  period  or  may
require  that  they  be kept longer. Such records may be kept within the
meaning of this section when reproduced on any photographic,  photostat-
ic, microfilm, micro-card, miniature photographic or other process which
actually reproduces the original record. If those records are maintained
in  an  electronic format, they must be made available and accessible to
the commissioner in electronic format.
  S 9. Subdivision (b) of section 1287 of  the  tax  law,  as  added  by
section  1  of  part  E of chapter 25 of the laws of 2009, is amended to
read as follows:
  (b) Notwithstanding the provisions of subdivision (a) of this section,
the commissioner may, in his or her discretion, permit the proper  offi-
cer  of  [a]  THE  city [that regulates taxicabs] or the duly authorized
representative of such officer, to inspect any return filed  under  this
article,  or  may  furnish  to such officer or such officer's authorized
representative an abstract of any such return or supply such person with
information  concerning  an  item  contained  in  any  such  return,  or
disclosed  by any investigation of tax liability under this article; but
such permission shall be granted or such information furnished  only  if
such  city  OR  THE  TLC  shall have furnished the commissioner with all
information requested by the commissioner pursuant to this  article  and
shall  have  permitted the commissioner or the commissioner's authorized
representative to make any inspection of any records or reports concern-
ing taxicabs, and [their] TAXICAB owners [or operators]  filed  with  or

S. 6610                            104                           A. 9710

possessed  by  such  city  OR  THE  TLC  which the commissioner may have
requested from such city OR THE TLC. PROVIDED, FURTHER, THAT THE COMMIS-
SIONER MAY DISCLOSE TO SUCH CITY OR THE TLC  WHETHER  OR  NOT  A  PERSON
LIABLE  FOR  THE TAX IMPOSED BY THIS ARTICLE HAS PAID ALL OF THE TAX DUE
UNDER THIS ARTICLE AS OF ANY GIVEN DATE.
  S 10. Section 1289 of the tax law, as added by section 1 of part E  of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1289. Cooperation by city. The city AND THE TLC shall cooperate with
and  assist  the commissioner to effect the purposes of this article and
the commissioner's responsibilities under this article. Such cooperation
shall include furnishing the names, addresses and all other  information
concerning  every  TAXICAB  owner,  [operator] MEDALLION, and [driver of
taxicabs] TAXICAB in the city, AND THE RECORDS OF ANY OF  THEM,  IN  THE
CITY'S POSSESSION OR IN THE POSSESSION OF ANY OF ITS AGENCIES OR INSTRU-
MENTALITIES,  together  with  any  other  information  the  commissioner
requests, all without cost to the commissioner.
  S 11. Section 1290 of the tax law, as added by section 1 of part E  of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1290. Practice and procedure. The provisions of article twenty-seven
of  this  chapter  shall apply with respect to the administration of and
procedure with respect to the tax imposed by this article  in  the  same
manner  and  with  the  same force and effect as if the language of such
article twenty-seven had been incorporated in full into this article and
had expressly referred to the tax under  this  article,  except  to  the
extent  that  any such provision is either inconsistent with a provision
of this article or is not relevant to this article. [Criminal  penalties
provided  in  section  one thousand eight hundred twenty of this chapter
shall apply in the same manner and with the same force and  effect  with
respect to this article.]
  S  12.  The tax law is amended by adding a new section 1821 to read as
follows:
  S 1821. MEDALLION TAXICAB OWNERS  TAX  IN  THE  METROPOLITAN  COMMUTER
TRANSPORTATION DISTRICT. ANY WILLFUL ACT OR OMISSION BY ANY PERSON WHICH
CONSTITUTES  A  VIOLATION  OF  ANY PROVISION OF ARTICLE TWENTY-NINE-A OF
THIS CHAPTER SHALL CONSTITUTE A MISDEMEANOR.
  S 13. Subdivision 1 of section 181 of the general  municipal  law,  as
amended  by  chapter  430  of  the  laws  of 2003, is amended to read as
follows:
  1. The registration and licensing of taxicabs and may limit the number
of taxicabs to be licensed and the county of Westchester may adopt ordi-
nances regulating the registration and licensing of taxicabs and  limou-
sines  and may limit the number to be licensed; and the county of Nassau
may adopt ordinances regulating the registration of taxicabs and  limou-
sines;  PROVIDED, HOWEVER, THAT A CITY WITH A POPULATION OF A MILLION OR
MORE IN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT ESTABLISHED BY
SECTION TWELVE HUNDRED SIXTY-TWO OF THE  PUBLIC  AUTHORITIES  LAW  SHALL
ADOPT  OR AMEND ORDINANCES, REGULATIONS, AND PROCEDURES THAT COMPLY WITH
THE REQUIREMENTS OF ARTICLE TWENTY-NINE-A  OF  THE  TAX  LAW,  INCLUDING
PROVIDING   THAT   THE  TAXICAB  OWNER  LIABLE  FOR  TAX  UNDER  ARTICLE
TWENTY-NINE-A OF THE TAX LAW SHALL, IF SUCH OWNER'S MEDALLION TAXICAB IS
DRIVEN BY A PERSON OTHER THAN SUCH  OWNER,  BE  PERMITTED  TO  CHARGE  A
LESSEE  OF  SUCH TAXICAB, IN ADDITION TO ANY LEASE FEE AUTHORIZED BY THE
TLC OF THE CITY, AN AMOUNT EQUAL TO THE ANNUALIZED AMOUNT  OF  SUCH  TAX
IMPOSED BY ARTICLE TWENTY-NINE-A OF THE TAX LAW DIVIDED BY THE NUMBER OF
LEASE  PERIODS SUCH VEHICLE IS REQUIRED TO BE OPERATED EACH YEAR BY SUCH
TLC. THE TERMS "TAXICAB OWNER," "MEDALLION," "MEDALLION TAXICAB," "TLC,"

S. 6610                            105                           A. 9710

AND "CITY" SHALL HAVE THE SAME MEANINGS  THEY  HAVE  IN  SECTION  TWELVE
HUNDRED EIGHTY OF THE TAX LAW.
  S  14.  Section  19-504  of the administrative code of the city of New
York is amended by adding a new subdivision q to read as follows:
  Q. NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, THE COMMISSION SHALL
NOT ISSUE OR RENEW A TAXICAB LICENSE UNLESS THE APPLICANT OR HOLDER,  AS
THE  CASE  MAY  BE,  AVOWS UNDER PENALTY OF PERJURY THAT SUCH PERSON HAS
FULLY  PAID  ALL  AND  ANY  TAX  IMPOSED  ON  SUCH  PERSON  BY   ARTICLE
TWENTY-NINE-A OF THE TAX LAW. THE COMMISSION MAY ASK THE COMMISSIONER OF
TAXATION  AND  FINANCE  FOR  CONFIRMATION THAT SUCH PERSON HAS PAID SUCH
TAX. IF THE PERSON DOES NOT MAKE SUCH  AVOWAL  OR  THE  COMMISSIONER  OF
TAXATION  AND  FINANCE  ADVISES  THAT SUCH PERSON OWES ANY SUCH TAX, THE
COMMISSION SHALL NOT ISSUE OR RENEW SUCH LICENSE UNLESS AND  UNTIL  SUCH
PERSON  PRESENTS  PROOF THAT ALL SUCH TAX HAS BEEN PAID. NOTHING IN THIS
SUBDIVISION SHALL PREVENT A PERSON TO WHOM A TAXICAB  LICENSE  HAS  BEEN
ISSUED FROM MOVING THE MEDALLION WHICH EVIDENCES THE LICENSE TO A STAND-
BY VEHICLE IF THE TLC'S REGULATIONS PERMIT SUCH PERSON TO DO SO.
  S  15.  The legislature hereby declares that it is an essential public
interest to support public transportation in the  metropolitan  commuter
transportation  district,  to  enable  citizens  to  commute to work and
school, to access health care and to engage in all the other  activities
that  are  part  of a healthy and robust society and article 29-A of the
tax law has been enacted and the revenues from the tax imposed  by  that
article have been expressly dedicated to support the metropolitan trans-
portation  authority  financial assistance fund for those purposes. Thus
the legislature considers it vital to the public health and  welfare  of
the  people  of  the  state of New York to ensure that the revenues from
article 29-A of the tax law continue unabated.  Therefore, notwithstand-
ing any provision of law to the contrary,  if  any  court  of  competent
jurisdiction  issues  any temporary restraining order, permanent injunc-
tion, or other injunctive relief, or any order or decision, or takes any
other action, that invalidates or prevents or delays from taking  effect
all  or  any  portion  of article 29-A of the tax law as amended by this
act, then the sections of this  act,  other  than  sections  eleven  and
twelve  of  this  act and this section, shall expire and article 29-A of
the tax law as it existed prior to the  amendments  made  by  this  act,
other  than by sections eleven and twelve of this act, shall be restored
effective the first day of the first month next commencing at  least  30
days  after  any such court order, injunction, decision, or relief takes
effect, and such restored article 29-A  shall  apply  to  taxicab  rides
occurring  on  and  after  such first day of such first month, provided,
however that sections eleven and twelve of this act shall apply to  such
restored  article  29-A.  Provided,  further,  that, notwithstanding any
provision of law to the contrary, if  any  such  order,  injunction,  or
other  injunctive  relief,  or  any order or decision, or any such other
action that invalidated or prevented or delayed from taking  effect  all
or  any  portion of such article 29-A shall be overturned, overruled, or
reversed or shall expire or be of no further force and effect, then  the
sections  of  this act that expired, as described above in this section,
shall be restored and take effect the first day of a  quarterly  period,
as described in section 1284 of the tax law as amended by section six of
this  act, next commencing at least 30 days after the date of such over-
turn, overrule, reversal, or expiration.
  S 16. This act shall take effect June 1, 2010, and shall apply to uses
made and privileges exercised on and after that date; provided that:

S. 6610                            106                           A. 9710

  (a) the provisions of article 29-A of the tax law in  existence  prior
to  that  date  shall continue to apply to all liabilities accrued up to
that date;
  (b)  notwithstanding  any contrary provision of law, a person required
to file a return and pay tax under sections 1284 and 1285 of the tax law
for the period commencing April 1, 2010, shall file that return and  pay
tax  by  June  20,  2010,  for  the period commencing April 1, 2010, and
ending May 31, 2010; and
  (c) sections nine, eleven and twelve of this act shall  be  deemed  to
have  taken  effect  on  the same date and apply in the same manner that
part E of chapter 25 of the laws of 2009 took effect.
  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 CC of this act shall be
as specifically set forth in the last section of such Parts.

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

    S. 6610--A                                            A. 9710--A

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

                            January 19, 2010
                               ___________

IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
  cle seven of the Constitution -- read twice and ordered  printed,  and
  when  printed to be committed to the Committee on Finance -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

IN ASSEMBLY -- A BUDGET BILL, submitted  by  the  Governor  pursuant  to
  article  seven  of  the  Constitution -- read once and referred to the
  Committee on Ways and Means --  committee  discharged,  bill  amended,
  ordered reprinted as amended and recommitted to said committee

AN ACT to amend the tax law, in relation to imposing a tax on the sever-
  ing  of  natural  gas  (Part  A); to amend the tax law, in relation to
  increasing the rate of the cigarette tax under article 20 of  the  tax
  law  (Part  B);  to  amend the tax law, in relation to imposing tax on
  beverage syrups and soft drinks (Part C); to amend  the  tax  law,  in
  relation  to the statutory limitation on the biofuel production credit
  and the qualified emerging technology company  facilities,  operations
  and  training  credits  (Part D); to amend the tax law, in relation to
  the inclusion of certain past employment related income in the  calcu-
  lation  of  the  New  York  source income of nonresidents (Part E); to
  amend the tax law, in  relation  to  clarifying  that  certain  income
  constitutes New York source income of nonresident shareholders of an S
  corporation (Part F); to amend the tax law, in relation to taxation of
  certain resident trusts; and to repeal subparagraph (D) of paragraph 3
  of  subsection  (b)  of section 605 of such law relating thereto (Part
  G); to amend the tax law, in  relation  to  information  reporting  of
  payments  made  in  settlement of payment card and third party network
  transactions (Part H); to amend the tax law, in relation to  authoriz-
  ing  the  use  of generally accepted statistical sampling to determine
  the amount of sales and compensating use tax due under articles 28 and
  29 of such law (Part I); to amend the tax law and  the  administrative
  code  of  the  city  of New York, in relation to the penalties imposed
  upon tax return preparers failing to electronically file  returns  and
  other  tax  documents  when  required  by  law  to do so, to authorize
  reasonable correction periods for electronic tax filings and payments,
  and to prohibit tax  return  preparers  and  software  companies  from
  charging  separately  for  electronic filing of New York tax documents

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD12674-03-0

S. 6610--A                          2                         A. 9710--A

  (Part J); to amend the tax law, in relation to providing  the  depart-
  ment of taxation and finance with greater flexibility, and the ability
  to realize cost savings, by allowing the department to use alternative
  means by which tax notices and other tax documents are communicated to
  addressees  (Part  K);  to amend the tax law, in relation to reforming
  the offer-in-compromise program (Part L); to direct the department  of
  taxation  and  finance to complete a report that makes recommendations
  about reforming and modernizing state and local taxes on communication
  services (Part M); to amend chapter 405 of the laws of 1999,  amending
  the  real property tax law relating to improving the administration of
  the school tax relief (STAR) program, in relation to  eliminating  the
  expiration and repeal of the Quick Draw lottery game; and to amend the
  tax  law,  in  relation  to  the game of Quick Draw (Part N); to amend
  chapter 383 of the laws of 2001 amending the tax law  and  other  laws
  relating to authorizing the division of the lottery to conduct a pilot
  program  involving the operation of video lottery terminals at certain
  racetracks, in relation to the effectiveness thereof; to amend the tax
  law, in relation to the hours of operation of video lottery gaming and
  the recapture of the vendor fee at a  certain  track;  and  to  repeal
  section  13  of  chapter  140 of the laws of 2008 amending the racing,
  pari-mutuel wagering and breeding   law and  other  laws  relating  to
  thoroughbred racing and to repeal section 5 of chapter 286 of the laws
  of  2008  amending  the tax law relating to annual capital improvement
  credits for video lottery gaming operators, relating thereto (Part O);
  to amend the tax law and the uniform commercial code, in  relation  to
  imposing  a  recording  tax  on  the  filing  of  financing statements
  pertaining to cooperative interests in cooperative organizations (Part
  P); to amend the tax law, in relation to  establishing  a  school  tax
  circuit  breaker  tax  credit;  and to amend the state finance law, in
  relation to establishing a property tax circuit breaker  reserve  fund
  and  annual  spending growth cap, and increasing the rainy day reserve
  fund; and providing for the repeal of certain provisions upon  expira-
  tion  thereof  (Part  Q);  to amend the tax law and the administrative
  code of the city of New York, in relation to allowing  recognition  of
  marriages  performed outside New York state (Part R); to amend the tax
  law, in relation to narrowing the definition of vendor for purposes of
  the sales and compensating use taxes (Part S); to amend the  alcoholic
  beverage  control law and the state finance law, in relation to enact-
  ing the wine industry and liquor store revitalization act;  to  repeal
  certain  provisions  of  the  alcoholic  beverage control law relating
  thereto; and providing for the repeal of certain provisions upon expi-
  ration thereof (Part T); to amend the public housing law, in  relation
  to  providing  a  credit  against  income  tax for persons or entities
  investing in low-income housing (Part U); to amend chapter 60  of  the
  laws  of  2004, amending the tax law relating to the empire state film
  production credit, in relation to the  empire  state  film  production
  credit and in relation to the effectiveness of such provisions; and to
  amend  the  tax  law,  in relation to the empire state film production
  credit (Part V); to amend the economic development  law  and  the  tax
  law,  in relation to creating the excelsior jobs program act (Part W);
  to amend the general municipal law, in relation to the decertification
  of business entities located in empire zones; to amend the tax law, in
  relation to a refund or credit provided to certain zone businesses and
  to a report on empire zone businesses produced by  the  department  of
  taxation  and  finance,  and  to amend chapter 57 of the laws of 2009,
  amending the general municipal law and the tax law relating to  enact-

S. 6610--A                          3                         A. 9710--A

  ing reforms to the empire zones program, in relation to the effective-
  ness  thereof  (Part  X);  to  amend  chapter 298 of the laws of 1985,
  amending the tax law relating to the franchise tax on  banking  corpo-
  rations  imposed  by the tax law, authorized to be imposed by any city
  having a population of one million or more by chapter 772 of the  laws
  of 1966 and imposed by the administrative code of the city of New York
  and  relating  to  other provisions of the tax law, chapter 883 of the
  laws of 1975 and the administrative code of the city of New York which
  relates to such franchise tax, to amend chapter 817  of  the  laws  of
  1987,  amending  the  tax  law and the environmental conservation law,
  constituting the business tax reform and rate reduction act  of  1987,
  and to amend chapter 525 of the laws of 1988, amending the tax law and
  the  administrative code of the city of New York relating to the impo-
  sition of taxes in the city of New York, in relation to the effective-
  ness of certain provisions of such chapters; and to extend the  Gramm-
  Leach-Bliley  transitional  provisions  under  the  franchise taxes on
  banking corporations under the tax law and the administrative code  of
  the  city  of  New York (Part Y); to amend the tax law, in relation to
  making technical corrections to certain tax enforcement and sales  tax
  avoidance  provisions;  and  to  amend  chapter 57 of the laws of 2009
  amending the criminal procedure law, the penal law, and  the  tax  law
  relating  to  creating  the offense of "tax fraud act", in relation to
  the effectiveness thereof (Subpart  A);  to  amend  the  tax  law,  in
  relation  to  defining  certain  terms  (Subpart  B); and to amend the
  general municipal law and the public authorities law, in  relation  to
  statements  of industrial agencies and their agents and project opera-
  tors (Subpart C) (PART Z); 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  thorough-
  bred  races,  simulcasting of races run by out-of-state harness tracks
  and distributions of wagers; to amend chapter 281 of the laws of  1994
  amending  the  racing, pari-mutuel wagering and breeding law and other
  laws relating to simulcasting and to amend chapter 346 of the laws  of
  1990  amending  the  racing, pari-mutuel wagering and breeding law and
  other laws relating to simulcasting  and  the  imposition  of  certain
  taxes,  in  relation  to  extending certain provisions thereof; and to
  amend the racing, pari-mutuel wagering and breeding law,  in  relation
  to  extending  certain  provisions thereof (Part AA); to amend the tax
  law, in relation to the amount  of  the  unified  credit  against  the
  estate  tax  (Part  BB); Intentionally omitted (Part CC); to amend the
  tax law, in relation to the brownfield redevelopment tax credit  (Part
  DD);  to  amend the tax law and the administrative code of the city of
  New York, in relation to the taxicab ride tax imposed in the metropol-
  itan commuter transportation district by article 29-A of the  tax  law
  (Part  EE);  and  to  amend  the tax law, in relation to the rates and
  filing threshold of the metropolitan commuter transportation  mobility
  tax (Part FF)

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

  Section 1. This act enacts into law major  components  of  legislation
which are necessary to implement the state fiscal plan for the 2010-2011
state  fiscal  year.  Each  component  is wholly contained within a Part
identified as Parts A through FF. The effective date for each particular

S. 6610--A                          4                         A. 9710--A

provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes 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. Paragraph a of subdivision twenty-sixth of section  171  of
the tax law, as amended by section 1 of subpart D of part V-1 of chapter
57 of the laws of 2009, is amended to read as follows:
  a. Set the overpayment and underpayment rates of interest for purposes
of articles twelve-A, SEVENTEEN, 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
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. Subdivision 1 of section 171-a of the  tax  law,  as  amended  by
section  1  of  part  R of chapter 60 of the laws of 2004, is amended to
read as follows:
  1. All taxes, interest, penalties and fees collected  or  received  by
the commissioner or the commissioner's duly authorized agent under arti-
cles nine (except section one hundred eighty-two-a thereof and except as
otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
twelve-A (except as otherwise provided in section  two  hundred  eighty-
four-d  thereof),  thirteen, thirteen-A (except as otherwise provided in
section three hundred twelve thereof), SEVENTEEN  (EXCEPT  AS  OTHERWISE
PROVIDED  IN  SECTION  FOUR  HUNDRED EIGHT THEREOF), eighteen, nineteen,
twenty (except as otherwise provided in section four hundred  eighty-two
thereof), twenty-one, twenty-two, twenty-six, twenty-six-B, twenty-eight
(except  as  otherwise  provided in section eleven hundred two or eleven
hundred three thereof), twenty-eight-A, thirty-one (except as  otherwise
provided  in  section  fourteen hundred twenty-one thereof), thirty-two,
thirty-three and thirty-three-A of this chapter shall be deposited daily
in one account with such responsible  banks,  banking  houses  or  trust
companies  as may be designated by the comptroller, to the credit of the
comptroller. Such an account may be established in one or more  of  such
depositories.  Such  deposits  shall be kept separate and apart from all
other money in the possession of the comptroller. The comptroller  shall
require  adequate  security  from  all  such  depositories. Of the total
revenue collected or received under such articles of this  chapter,  the
comptroller  shall  retain in the comptroller's hands such amount as the
commissioner may determine to be necessary for refunds or reimbursements
under such articles of this chapter [and article  ten  thereof]  out  of

S. 6610--A                          5                         A. 9710--A

which  amount the comptroller shall pay any refunds or reimbursements to
which taxpayers shall be entitled under the provisions of such  articles
of  this  chapter  [and  article  ten thereof]. The commissioner and the
comptroller  shall  maintain  a system of accounts showing the amount of
revenue collected or received from each of the  taxes  imposed  by  such
articles.  The  comptroller,  after  reserving  the  amount  to pay such
refunds or reimbursements, shall, on or before the  tenth  day  of  each
month, pay into the state treasury to the credit of the general fund all
revenue deposited under this section during the preceding calendar month
and  remaining  to  the  comptroller's  credit  on  the last day of such
preceding month, (i) except that the comptroller shall pay to the  state
department of social services that amount of overpayments of tax imposed
by  article  twenty-two  of this chapter and the interest on such amount
which is certified to the comptroller by the commissioner as the  amount
to  be  credited against past-due support pursuant to subdivision six of
section one hundred seventy-one-c of this [chapter]  ARTICLE,  (ii)  and
except  that  the  comptroller  shall  pay  to the New York state higher
education services corporation and the state university of New  York  or
the city university of New York respectively that amount of overpayments
of tax imposed by article twenty-two of this chapter and the interest on
such amount which is certified to the comptroller by the commissioner as
the amount to be credited against the amount of defaults in repayment of
guaranteed  student  loans and state university loans or city university
loans pursuant to subdivision five of section one hundred  seventy-one-d
and  subdivision six of section one hundred seventy-one-e of this [chap-
ter] ARTICLE, (iii) and except further that,  notwithstanding  any  law,
the  comptroller shall credit to the revenue arrearage account, pursuant
to section ninety-one-a of the state finance law, that amount  of  over-
payment  of  tax  imposed  by  article nine, nine-A, twenty-two, thirty,
thirty-A, thirty-B, thirty-two or thirty-three of this chapter, and  any
interest  thereon,  which is certified to the comptroller by the commis-
sioner as the amount to be credited against a past-due legally enforcea-
ble debt owed to a state agency pursuant to paragraph (a) of subdivision
six of section one hundred  seventy-one-f  of  this  article,  provided,
however, he shall credit to the special offset fiduciary account, pursu-
ant  to  section  ninety-one-c of the state finance law, any such amount
creditable as a liability as set forth in paragraph (b)  of  subdivision
six  of  section  one  hundred  seventy-one-f  of this article, (iv) and
except further that the comptroller shall pay to the city  of  New  York
that amount of overpayment of tax imposed by article nine, nine-A, twen-
ty-two,  thirty, thirty-A, thirty-B, thirty-two, or thirty-three of this
chapter and any interest thereon that is certified to the comptroller by
the commissioner as the amount to be credited against city of  New  York
tax  warrant judgment debt pursuant to section one hundred seventy-one-l
of this article, (v) and except further that the comptroller  shall  pay
to  a  non-obligated spouse that amount of overpayment of tax imposed by
article twenty-two of this chapter and the interest on such amount which
has been credited pursuant to section  one  hundred  seventy-one-c,  one
hundred  seventy-one-d,  one hundred seventy-one-e, one hundred seventy-
one-f or one hundred seventy-one-l of this article and which  is  certi-
fied  to the comptroller by the commissioner as the amount due such non-
obligated spouse pursuant to paragraph six of subsection (b) of  section
six  hundred  fifty-one  of this chapter; and (vi) the comptroller shall
deduct a like amount which the comptroller shall pay into  the  treasury
to  the  credit of the general fund from amounts subsequently payable to
the [department of  social  services]  OFFICE  OF  CHILDREN  AND  FAMILY

S. 6610--A                          6                         A. 9710--A

SERVICES  AND  THE  OFFICE  OF  TEMPORARY AND DISABILITY ASSISTANCE, the
state university of New York, the city university of New  York,  or  the
higher  education services corporation, or the revenue arrearage account
or  special offset fiduciary account pursuant to section ninety-one-a or
ninety-one-c of the state finance law, as the case may be, whichever had
been credited the amount originally withheld from such overpayment,  and
(vii)  with respect to amounts originally withheld from such overpayment
pursuant to section one hundred seventy-one-l of this article  and  paid
to  the  city  of  New York, the comptroller shall collect a like amount
from the city of New York.
  S 3. The tax law is amended by adding a new  article  17  to  read  as
follows:
                               ARTICLE 17
                       TAX ON SEVERING NATURAL GAS
SECTION 400. GENERAL DEFINITIONS.
        401. IMPOSITION OF TAX.
        402. REGISTRATION OF PRODUCERS.
        403. RECORDS TO BE KEPT BY PRODUCERS.
        404. PAYMENT OF TAX; RETURNS.
        405. DETERMINATION OF TAX.
        406. PENALTIES AND INTEREST.
        407. MAILING RULES; HOLIDAYS.
        408. DEPOSIT AND DISPOSITION OF REVENUE.
        409. REFUNDS.
        410. SECRECY.
        411. LIABILITY FOR OTHER TAXES NOT AFFECTED.
  S 400. GENERAL DEFINITIONS. AS USED IN THIS ARTICLE:
  1.  "PERSON"  INCLUDES  AN  INDIVIDUAL, PARTNERSHIP, LIMITED LIABILITY
COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY, CORPORATION, ESTATE,
RECEIVER, TRUSTEE, ASSIGNEE, REFEREE, AND ANY OTHER PERSON ACTING  IN  A
FIDUCIARY  OR  REPRESENTATIVE  CAPACITY, WHETHER APPOINTED BY A COURT OR
OTHERWISE, AND ANY COMBINATION OF THE FOREGOING.
  2. "PRODUCER" MEANS ANY PERSON WHO SEVERS NATURAL GAS FROM A GAS  POOL
IN THE MARCELLUS OR UTICA SHALE FORMATION USING A HORIZONTAL WELL.
  3. "PURCHASER" MEANS ANY PERSON, CONSIGNOR, AGENT, OR OTHER DEALER, BY
WHATEVER  NAME  CALLED,  WHO  OR WHICH ACQUIRES TITLE OUTRIGHT OR CONDI-
TIONALLY TO ANY INTEREST IN SEVERED NATURAL GAS.
  4. "MARKET VALUE," WHEN USED IN REFERENCE TO THE RATE OF SEVERANCE TAX
ON NATURAL GAS, MEANS THE PRODUCER'S ACTUAL CASH RECEIPTS FROM THE  SALE
OF  NATURAL  GAS  TO  THE  FIRST  PURCHASER.  IN A TRANSACTION INVOLVING
RELATED PARTIES (AS THAT TERM IS DESCRIBED IN SECTION 267(B) OR  SECTION
707(B)  OF  THE INTERNAL REVENUE CODE), MARKET VALUE CANNOT BE LESS THAN
THE FAIR MARKET VALUE FOR NATURAL GAS OF SIMILAR GRADE AND  QUALITY.  IN
THE ABSENCE OF A SALE, MARKET VALUE IS THE FAIR MARKET VALUE FOR NATURAL
GAS  OF  SIMILAR  GRADE AND QUALITY. "FAIR MARKET VALUE" IS THE MIDPOINT
PRICE OF NATURAL GAS AT THE  DOMINION,  SOUTH  POINT  MARKET  CENTER  AS
PUBLISHED  IN  PLATTS  GAS  DAILY OR, IF THAT PRICE IS UNATTAINABLE, THE
FAIR MARKET PRICE OF NATURAL GAS AT A SIMILAR MARKET CENTER AS PUBLISHED
BY A SIMILAR INDUSTRY ORGANIZATION.
  5. "SEVER", "SEVERED", OR "SEVERING" MEANS,  IN  RELATION  TO  NATURAL
GAS,  TAKING  OR REMOVING FOR COMMERCIAL PURPOSES FROM THE SOIL OR WATER
BY A WELL WHOSE SURFACE HOLE IS  LOCATED  WITHIN  THIS  STATE.  HOWEVER,
"SEVER",  "SEVERED",  OR  "SEVERING"  DOES  NOT APPLY TO ANY NATURAL GAS
RETURNED TO ANY FORMATION, IN RECYCLING, REPRESSURING, PRESSURE  MAINTE-
NANCE  OPERATION,  OR  OTHER OPERATION, FOR THE PRODUCTION OF OIL OR ANY
OTHER LIQUID HYDROCARBON.

S. 6610--A                          7                         A. 9710--A

  6. "COMPLETION" OR "COMPLETED" MEANS THE ACT OF MAKING A WELL  CAPABLE
OF PRODUCING NATURAL GAS.
  7. "MCF" EQUALS ONE THOUSAND CUBIC FEET.
  S 401. IMPOSITION OF TAX. THERE IS HEREBY IMPOSED UPON EVERY PRODUCER,
FOR  THE PRIVILEGE OF SEVERING NATURAL GAS FROM ANY OIL OR GAS WELL FROM
A GAS POOL IN THE MARCELLUS OR THE UTICA SHALE FORMATION USING  A  HORI-
ZONTAL  WELL, A TAX  OF THREE PERCENT OF THE MARKET VALUE OF THE NATURAL
GAS.
  S 402. REGISTRATION OF PRODUCERS. 1. THE DEPARTMENT, UPON THE APPLICA-
TION OF A PERSON, SHALL REGISTER THAT PERSON AS A  PRODUCER  UNDER  THIS
ARTICLE  IF THAT PERSON HAS OBTAINED ALL PERMITS REQUIRED BY THE DEPART-
MENT OF ENVIRONMENTAL CONSERVATION TO SEVER NATURAL GAS FROM A GAS  POOL
IN  THE MARCELLUS OR UTICA SHALE FORMATION USING A HORIZONTAL WELL.  THE
APPLICATION SHALL BE IN A FORM AND CONTAIN SUCH DATA AS  THE  DEPARTMENT
PRESCRIBES. NO PRODUCER, UNLESS SO REGISTERED, MAY SEVER NATURAL GAS.
  2.    THE COMMISSIONER MAY REQUIRE A PRODUCER TO FILE WITH THE DEPART-
MENT A BOND ISSUED BY A SURETY COMPANY THAT IS APPROVED  BY  THE  SUPER-
INTENDENT  OF INSURANCE AS TO SOLVENCY AND RESPONSIBILITY AND AUTHORIZED
TO TRANSACT BUSINESS IN THIS STATE OR ANOTHER SECURITY ACCEPTABLE TO THE
COMMISSIONER, IN AN AMOUNT FIXED  BY  THE  COMMISSIONER  TO  SECURE  THE
PAYMENT OF ANY SUMS DUE FROM SUCH PRODUCER PURSUANT TO THIS ARTICLE. THE
COMMISSIONER MAY REQUIRE THAT THE BOND OR OTHER SECURITY BE FILED BEFORE
A PRODUCER IS REGISTERED, AND THE AMOUNT THEREOF MAY BE INCREASED AT ANY
TIME  WHEN,  IN  HIS  OR  HER  JUDGMENT,  THE INCREASE IS NECESSARY AS A
PROTECTION TO THE REVENUES  UNDER  THIS  ARTICLE.  SECURITIES  DEPOSITED
UNDER  THIS  SUBDIVISION  WILL BE KEPT IN THE JOINT CUSTODY OF THE COMP-
TROLLER AND THE COMMISSIONER AND MAY BE SOLD BY THE  COMMISSIONER  IF  A
SALE  BECOMES NECESSARY TO RECOVER ANY SUMS DUE FROM THE PRODUCER PURSU-
ANT TO THIS ARTICLE, BUT NO SALE WILL BE HELD UNTIL AFTER  THE  PRODUCER
HAS  AN  OPPORTUNITY TO LITIGATE THE VALIDITY OF ANY TAX. AFTER ANY SALE
OF SUCH SECURITIES, THE AMOUNT, IF ANY, ABOVE THE SUMS  DUE  UNDER  THIS
ARTICLE  SHALL BE RETURNED TO THE PRODUCER. THE DEPARTMENT, WHEN AUTHOR-
IZED BY THE PRODUCER, MAY FURNISH INFORMATION REGARDING  THE  PRODUCER'S
REGISTRATION  AND ANY OTHER INFORMATION THAT THE PRODUCER AUTHORIZES THE
DEPARTMENT TO DISCLOSE.
  3. (A) THE REGISTRATION OF ANY PRODUCER MAY BE CANCELLED OR  SUSPENDED
BY  THE COMMISSIONER WHEN THE PRODUCER (I) FAILS TO FILE A BOND OR OTHER
SECURITY WHEN REQUIRED OR THE AMOUNT THEREOF IS INCREASED, OR (II) FAILS
TO CONTINUE TO MAINTAIN IN FULL  FORCE  AND  EFFECT  AT  ALL  TIMES  THE
REQUIRED BOND OR OTHER SECURITY FILED WITH THE COMMISSIONER.
  (B) NOTWITHSTANDING ANY OTHER PROVISION TO THE CONTRARY:
  (I)  IN THE EVENT THAT THE COMMISSIONER DETERMINES THAT AN INCREASE IN
THE AMOUNT OF THE BOND OR  OTHER  SECURITY  FILED  BY  A  REGISTRANT  IS
REQUIRED  TO SECURE THE LIABILITY OF SUCH REGISTRANT, THAT BOND INCREASE
OR OTHER SECURITY INCREASE SHALL BE FILED BY THE REGISTRANT WITHIN THIR-
TY DAYS FROM THE DAY THE NOTICE AND DEMAND THEREFOR HAS  BEEN  GIVEN  BY
THE  COMMISSIONER. IF THE REGISTRANT FAILS TO: (1) FILE THAT INCREASE IN
THE AMOUNT OF BOND OR OTHER SECURITY WITHIN THE THIRTY  DAY  PERIOD,  OR
(2)  MAKE TIMELY APPLICATION FOR A HEARING WITH RESPECT TO THE AMOUNT OF
THE INCREASE OF THE BOND  OR  OTHER  SECURITY,  THE  COMMISSIONER  SHALL
CANCEL OR SUSPEND THE REGISTRATION OF SUCH REGISTRANT.
  (II)  THE  REGISTRANT  MAY  APPLY TO THE DIVISION OF TAX APPEALS FOR A
HEARING TO REVIEW AN INCREASE IN THE AMOUNT OF THE BOND OR OTHER SECURI-
TY REQUIRED TO BE FILED BY MAKING APPLICATION THEREFOR WITHIN SEVEN DAYS
OF THE DAY THAT THE NOTICE AND DEMAND FOR AN INCREASE IS  GIVEN  BY  THE
COMMISSIONER,  PROVIDED, THE DIVISION OF TAX APPEALS MAY, BY REGULATION,

S. 6610--A                          8                         A. 9710--A

FOR THE CAUSES STATED THEREIN, EXTEND THE PERIOD TO A PERIOD NOT EXCEED-
ING FIFTEEN DAYS FROM THE DAY THAT NOTICE AND DEMAND IS  GIVEN.  IF  THE
REGISTRANT  TIMELY  APPLIES  FOR  A  HEARING TO REVIEW THE INCREASE, THE
HEARING  SHALL  BE  HELD, UNLESS EXTENDED BY THE DIVISION OF TAX APPEALS
FOR GOOD CAUSE, NO LESS THAN SEVEN DAYS AND NO MORE THAN TEN DAYS  AFTER
THE  APPLICATION  FOR  A  HEARING  IS  RECEIVED  BY  THE DIVISION OF TAX
APPEALS. WITHIN FIFTEEN DAYS OF THE RECEIPT OF  THE  APPLICATION  FOR  A
HEARING, UNLESS EXTENDED BY THE DIVISION OF TAX APPEALS, THE ADMINISTRA-
TIVE LAW JUDGE SHALL RENDER A DETERMINATION WITH RESPECT TO THE INCREASE
IN  THE  AMOUNT  OF THE BOND OR OTHER SECURITY AND, IF THE AMOUNT OF THE
BOND OR OTHER SECURITY IS DETERMINED TO BE DUE, THE  INCREASE  SHALL  BE
FILED  WITHIN SEVEN DAYS FROM THE DAY THE ADMINISTRATIVE LAW JUDGE GIVES
NOTICE OF THE DETERMINATION, OR, IF LATER, THIRTY DAYS FROM THE DAY  THE
NOTICE  AND  DEMAND FOR THE INCREASE HAD BEEN GIVEN BY THE COMMISSIONER.
NOTWITHSTANDING THAT THE REGISTRANT TAKES EXCEPTION TO  THE  ADMINISTRA-
TIVE  LAW JUDGE'S DETERMINATION THAT AN INCREASED BOND OR OTHER SECURITY
IS DUE, IF THE INCREASED BOND OR OTHER SECURITY IS NOT FILED WITHIN SUCH
TIME, THE COMMISSIONER SHALL CANCEL OR SUSPEND THE REGISTRATION  OF  THE
REGISTRANT.  WHERE  THE  ADMINISTRATIVE  LAW  JUDGE  DETERMINES  THAT AN
INCREASED BOND OR OTHER SECURITY IS NOT DUE BUT  THAT  DETERMINATION  IS
REVERSED  BY  THE  TAX  APPEALS TRIBUNAL, IF THE INCREASED BOND OR OTHER
SECURITY IS NOT FILED WITHIN SEVEN DAYS FROM THE  DAY  THE  TAX  APPEALS
TRIBUNAL GIVES NOTICE OF ITS DECISION, THEN NOTWITHSTANDING ANY JUDICIAL
REVIEW  OF  SUCH  DECISION OF THE TAX APPEALS TRIBUNAL, THE COMMISSIONER
SHALL CANCEL OR SUSPEND THE REGISTRATION OF THE REGISTRANT.
  4. THE REGISTRATION GRANTED TO A PRODUCER BY THE  COMMISSIONER  CANNOT
BE TRANSFERRED TO ANY OTHER PERSON WITHOUT THE PRIOR WRITTEN APPROVAL OF
THE  COMMISSIONER, AND ANY TRANSFER WITHOUT APPROVAL CONSTITUTES GROUNDS
FOR THE IMMEDIATE CANCELLATION OR SUSPENSION OF  THE  REGISTRATION.  THE
COMMISSIONER  MAY  ESTABLISH  BY RULE OR REGULATION A SPECIFIC PROCEDURE
FOR THE REVIEW OF AN APPLICATION FOR  REGISTRATION  IN  THOSE  INSTANCES
WHERE  THERE  HAS  BEEN A PROPOSED TRANSFER OF REGISTRATION. THE COMMIS-
SIONER, IN MAKING HIS OR HER DETERMINATION WITH RESPECT TO THE  APPROVAL
OF  A PROPOSED TRANSFER, WILL REVIEW THE APPLICATION AS ANY OTHER APPLI-
CATION FOR REGISTRATION IS REVIEWED UNDER THIS SECTION AND WILL MAKE HIS
OR HER DETERMINATION IN ACCORDANCE WITH THE CRITERIA SET FORTH  IN  THIS
SECTION. PROVIDED FURTHER, THE COMMISSIONER SHALL ISSUE A DETERMINATION,
WITH  RESPECT TO AN APPLICATION FOR A PROPOSED TRANSFER OF REGISTRATION,
WITHIN SEVENTY-FIVE DAYS AFTER THE DAY OF  THE  RECEIPT  OF  A  PROPERLY
COMPLETED  APPLICATION  CONTAINING  SUCH INFORMATION AS THE COMMISSIONER
MAY REQUIRE. IF THE COMMISSIONER FAILS TO ISSUE A  DETERMINATION  WITHIN
SUCH  TIME,  THE  COMMISSIONER WILL BE REQUIRED TO REGISTER THE PROPOSED
TRANSFEREE.
  S 403. RECORDS TO BE KEPT BY PRODUCERS. 1.  EVERY  PERSON  WHO  SEVERS
NATURAL  GAS  FROM  A GAS POOL IN THE MARCELLUS OR UTICA SHALE FORMATION
USING A HORIZONTAL WELL IN THIS STATE SHALL KEEP A COMPLETE AND ACCURATE
RECORD OF THE GROSS QUANTITY OF NATURAL GAS SEVERED AND THE MARKET VALUE
THEREOF, THE AMOUNT OF TAX DUE,  AND  ANY  OTHER  INFORMATION  THAT  THE
COMMISSIONER MAY REQUIRE FOR THE PROPER ENFORCEMENT OF THE PROVISIONS OF
THIS  ARTICLE.  SUCH  RECORDS  SHALL BE IN THE FORM AND CONTAIN WHATEVER
OTHER INFORMATION THE COMMISSIONER MAY PRESCRIBE. SUCH  RECORDS,  UNLESS
REQUIRED  BY THE COMMISSIONER TO BE PRESERVED FOR A LONGER PERIOD, SHALL
BE PRESERVED FOR A PERIOD OF  THREE  YEARS  AND  SHALL  BE  OFFERED  FOR
INSPECTION  AT  ANY TIME UPON ORAL OR WRITTEN DEMAND BY THE COMMISSIONER
OR THE COMMISSIONER'S DULY AUTHORIZED AGENTS. THE COMMISSIONER IS HEREBY
FURTHER AUTHORIZED TO EXAMINE THE EQUIPMENT OF ANY PERSON PERTAINING  TO

S. 6610--A                          9                         A. 9710--A

THE  SEVERANCE  OF  NATURAL GAS AND THE STOCK OF SUCH NATURAL GAS IN THE
POSSESSION OR CONTROL OF ANY PERSON. TO VERIFY THE  AMOUNT  OF  TAX  DUE
UNDER  THIS ARTICLE, EACH PERSON IS HEREBY DIRECTED AND REQUIRED TO GIVE
TO  THE  COMMISSIONER  OR  THE  COMMISSIONER'S DULY AUTHORIZED REPRESEN-
TATIVES THE MEANS, FACILITIES, AND OPPORTUNITY FOR SUCH EXAMINATIONS  AS
ARE HEREIN PROVIDED FOR AND REQUIRED.
  2.  THE  COMMISSIONER  MAY,  BY  REGULATION, PROVIDE FOR THE FILING OF
MONTHLY INFORMATION RETURNS BY EVERY PERSON REQUIRED TO MAINTAIN RECORDS
AS PRESCRIBED IN SUBDIVISION ONE OF THIS SECTION. THESE RETURNS SHALL IN
ALL MATERIAL RESPECTS REFLECT THE INFORMATION REQUIRED TO  BE  CONTAINED
IN  THOSE  RECORDS.   THESE RETURNS SHALL BE IN THE FORM AND CONTAIN ALL
OTHER INFORMATION THE COMMISSIONER MAY REQUIRE.
  S 404. PAYMENT OF TAX; RETURNS. 1. ON  OR  BEFORE  THE  TWENTIETH  DAY
AFTER THE END OF THE SECOND CALENDAR MONTH FOLLOWING A REPORTING PERIOD,
EVERY  PRODUCER  SHALL  FILE  WITH  THE  DEPARTMENT A RETURN IN THE FORM
PRESCRIBED BY THE COMMISSIONER THAT STATES THE GROSS QUANTITY OF NATURAL
GAS SEVERED AND THE MARKET VALUE THEREOF, THE AMOUNT OF TAX DUE, AND ANY
OTHER INFORMATION THAT THE  COMMISSIONER  MAY  REQUIRE  FOR  THE  PROPER
ENFORCEMENT  OF  THE  PROVISIONS  OF  THIS ARTICLE. THE COMMISSIONER MAY
REQUIRE THESE RETURNS TO BE FILED ELECTRONICALLY. THE COMMISSIONER SHALL
PRESCRIBE THE REPORTING PERIOD BY REGULATION AND MAY PERMIT  THE  FILING
OF  RETURNS BY PRODUCERS ON A MONTHLY, QUARTERLY, SEMI-ANNUAL, OR ANNUAL
BASIS. THE COMMISSIONER MAY WAIVE THE FILING OF RETURNS  BY  A  PRODUCER
FOR SUCH TIME AND UPON SUCH TERMS AS HE OR SHE MAY DEEM PROPER IF SATIS-
FIED  THAT  NO  TAX IMPOSED BY THIS ARTICLE IS OR WILL BE PAYABLE BY THE
PRODUCER DURING THE TIME FOR WHICH RETURNS ARE WAIVED. THE FACT  THAT  A
PRODUCER'S  NAME IS SIGNED TO A FILED RETURN IS PRIMA FACIE EVIDENCE FOR
ALL PURPOSES THAT THE RETURN WAS ACTUALLY SIGNED BY THAT PRODUCER.  EACH
SUCH PRODUCER SHALL PAY TO THE DEPARTMENT WITH THE FILING OF THE RETURN,
THE  TAXES  IMPOSED  BY  THIS  ARTICLE  DURING THE PERIOD COVERED BY THE
RETURN. THE COMMISSIONER MAY REQUIRE THAT THOSE PAYMENTS BE  MADE  ELEC-
TRONICALLY.
  2.  A  PRODUCER  WHO  IS  ENTITLED TO A REFUND UNDER THE PROVISIONS OF
SECTION FOUR HUNDRED NINE OF THIS ARTICLE, MAY TAKE CREDIT THEREFOR ON A
RETURN FILED PURSUANT TO THIS SECTION IN LIEU OF SUCH REFUND, UNLESS THE
COMMISSIONER WITHDRAWS THAT PRIVILEGE.
  S 405. DETERMINATION OF TAX. 1. EXCEPT AS OTHERWISE PROVIDED  IN  THIS
SECTION,  IF  A  PRODUCER  FILES  A  RETURN UNDER THIS ARTICLE, BUT THAT
RETURN IS INCORRECT OR INSUFFICIENT, THE COMMISSIONER MAY DETERMINE  THE
AMOUNT  OF  TAX  DUE AT ANY TIME WITHIN THREE YEARS AFTER THE RETURN WAS
FILED (WHETHER OR NOT SUCH RETURN WAS FILED ON OR AFTER THE  DUE  DATE),
AND GIVE WRITTEN NOTICE OF THAT DETERMINATION TO THE PRODUCER.
  2. THE COMMISSIONER MAY DETERMINE THE AMOUNT OF TAX DUE AT ANY TIME IF
A PRODUCER (A) HAS NOT REGISTERED AS REQUIRED BY THIS ARTICLE, (B) FAILS
TO  FILE A RETURN, OR (C) WILLFULLY DELIVERS OR DISCLOSES TO THE COMMIS-
SIONER ANY LIST, RETURN, REPORT, ACCOUNT, STATEMENT, OR  OTHER  DOCUMENT
KNOWN BY THE PRODUCER TO BE FRAUDULENT OR TO BE FALSE AS TO ANY MATERIAL
MATTER, OR OMITS ANY MATERIAL MATTER WITH INTENT TO DECEIVE.
  3.  NOTWITHSTANDING  ANY  OF THE FOREGOING PROVISIONS OF THIS SECTION,
WHERE, BEFORE THE EXPIRATION OF THE TIME PRESCRIBED IN THIS SECTION  FOR
THE  DETERMINATION  OF  TAX, BOTH THE COMMISSIONER AND THE PRODUCER HAVE
CONSENTED IN WRITING TO ITS DETERMINATION AFTER SUCH TIME, THE  TAX  MAY
BE  DETERMINED  AT ANY TIME PRIOR TO THE EXPIRATION OF THE PERIOD AGREED
UPON. THE PERIOD SO AGREED UPON MAY BE EXTENDED BY SUBSEQUENT AGREEMENTS
MADE IN WRITING BEFORE THE EXPIRATION OF THE  PERIOD  PREVIOUSLY  AGREED
UPON.

S. 6610--A                         10                         A. 9710--A

  4.  ANY  DETERMINATION  MADE PURSUANT TO THIS SECTION WILL FINALLY AND
IRREVOCABLY FIX THE TAX UNLESS THE PRODUCER AGAINST WHOM IT IS ASSESSED,
WITHIN NINETY DAYS AFTER THE GIVING OF  NOTICE  OF  SUCH  DETERMINATION,
PETITIONS  THE  DIVISION  OF  TAX  APPEALS  FOR A HEARING, OR UNLESS THE
COMMISSIONER  ON  HIS  OR  HER OWN MOTION, RE-DETERMINES THE SAME. AFTER
SUCH HEARING, THE DIVISION OF TAX APPEALS WILL GIVE NOTICE OF THE DETER-
MINATION OF THE ADMINISTRATIVE LAW JUDGE TO THE PRODUCER LIABLE FOR  THE
TAX  AND  TO THE COMMISSIONER. THAT DETERMINATION MAY BE REVIEWED BY THE
TAX APPEALS TRIBUNAL AS PROVIDED IN ARTICLE FORTY OF THIS  CHAPTER.  THE
DECISION  OF  THE  TAX  APPEALS  TRIBUNAL MAY BE REVIEWED AS PROVIDED IN
SECTION TWO THOUSAND SIXTEEN OF THIS CHAPTER, BUT THE PROCEEDING MAY NOT
BE COMMENCED UNLESS THE AMOUNT OF TAX STATED OR REFERRED TO IN THE DECI-
SION, WITH PENALTIES AND INTEREST THEREON, IF ANY, AND THE AMOUNT OF ANY
OTHER PENALTY STATED OR REFERRED TO IN THE DECISION, IS FIRST  DEPOSITED
WITH THE COMMISSIONER.
  5. THE REMEDY PROVIDED BY THIS SECTION FOR REVIEW OF A DECISION OF THE
TAX  APPEALS  TRIBUNAL IS THE EXCLUSIVE REMEDY AVAILABLE TO ANY TAXPAYER
FOR JUDICIAL DETERMINATION OF THE LIABILITY OF THE  TAXPAYER  FOR  TAXES
UNDER THIS ARTICLE.
  S  406.  PENALTIES AND INTEREST. 1. (A) A PRODUCER OR OTHER PERSON WHO
OR WHICH FAILS TO FILE A RETURN OR  TO  PAY  ANY  TAX  WITHIN  THE  TIME
REQUIRED  BY  THIS  ARTICLE  (DETERMINED WITH REGARD TO ANY EXTENSION OF
TIME FOR FILING OR PAYING) WILL BE SUBJECT  TO  A  PENALTY  OF  TEN  PER
CENTUM  OF  THE  AMOUNT  OF TAX DETERMINED TO BE DUE AS PROVIDED IN THIS
ARTICLE PLUS ONE PER CENTUM OF SUCH AMOUNT FOR EACH  MONTH  OR  FRACTION
THEREOF  DURING  WHICH THE FAILURE CONTINUES AFTER THE EXPIRATION OF THE
FIRST MONTH DURING WHICH THAT RETURN WAS REQUIRED TO BE  FILED  OR  SUCH
TAX  BECAME  DUE,  NOT  EXCEEDING  THIRTY  PER  CENTUM IN THE AGGREGATE.
PROVIDED, HOWEVER, IN THE CASE OF A FAILURE  TO  FILE  A  RETURN  WITHIN
SIXTY DAYS OF THE DATE PRESCRIBED FOR FILING OF A RETURN BY THIS ARTICLE
(DETERMINED WITH REGARD TO ANY EXTENSION OF TIME FOR FILING), THE PENAL-
TY  IMPOSED  BY  THIS  PARAGRAPH WILL NOT BE LESS THAN THE LESSER OF ONE
HUNDRED DOLLARS OR ONE HUNDRED PER CENTUM OF THE AMOUNT REQUIRED  TO  BE
SHOWN AS TAX ON THAT RETURN.  FOR THE PURPOSE OF THE PRECEDING SENTENCE,
THE  AMOUNT OF TAX REQUIRED TO BE SHOWN ON THE RETURN WILL BE REDUCED BY
THE AMOUNT OF ANY PART OF THE TAX THAT IS PAID ON  OR  BEFORE  THE  DATE
PRESCRIBED FOR PAYMENT OF THE TAX.
  (B)  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
UNDERPAYMENT  RATE SET BY THE COMMISSIONER PURSUANT TO SUBDIVISION TWEN-
TY-SIXTH OF SECTION ONE HUNDRED SEVENTY-ONE OF  THIS  CHAPTER  SHALL  BE
PAID FOR THE PERIOD FROM THAT LAST DATE TO THE DATE PAID, WHETHER OR NOT
ANY  EXTENSION  OF  TIME  FOR PAYMENT WAS GRANTED.   INTEREST UNDER THIS
PARAGRAPH WILL NOT BE OWED IF  THE  AMOUNT  THEREOF  IS  LESS  THAN  ONE
DOLLAR.
  (C)  IF THE COMMISSIONER DETERMINES THAT SUCH FAILURE OR DELAY WAS DUE
TO REASONABLE CAUSE (AS DETERMINED UNDER REGULATIONS OF THE  COMMISSION-
ER) AND NOT DUE TO WILLFUL NEGLECT, HE OR SHE SHALL ABATE ALL OR PART OF
SUCH PENALTY.
  (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
PROVIDED  FOR  IN PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION, THERE WILL
BE ADDED TO THE TAX (I) A PENALTY OF TWO TIMES THE AMOUNT  OF  TAX  DUE,
PLUS  (II)  INTEREST  ON SUCH UNPAID TAX AT THE UNDERPAYMENT RATE SET BY
THE COMMISSIONER PURSUANT TO SUBDIVISION  TWENTY-SIXTH  OF  SECTION  ONE
HUNDRED SEVENTY-ONE OF THIS CHAPTER FOR THE PERIOD BEGINNING ON THE LAST

S. 6610--A                         11                         A. 9710--A

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.
  (E)  THE  PENALTIES  AND INTEREST PROVIDED FOR IN THIS SECTION WILL BE
DETERMINED, ASSESSED, COLLECTED AND PAID IN THE SAME MANNER AS THE TAXES
IMPOSED BY THIS ARTICLE AND WILL BE DISPOSED OF AS HEREINAFTER  PROVIDED
WITH RESPECT TO MONEYS DERIVED FROM THE TAX.
  2. FOR PURPOSES OF THIS CHAPTER, THE FAILURE TO DO ANY ACT REQUIRED BY
THIS  ARTICLE  WILL  BE DEEMED AN ACT COMMITTED IN PART AT THE OFFICE OF
THE DEPARTMENT IN ALBANY. FOR PURPOSES OF THIS CHAPTER, THE  CERTIFICATE
OF  THE  DEPARTMENT  TO  THE EFFECT THAT A TAX HAS NOT BEEN PAID, THAT A
RETURN HAS NOT BEEN FILED, OR THAT INFORMATION HAS NOT BEEN SUPPLIED, AS
REQUIRED BY OR UNDER THE PROVISIONS OF THIS ARTICLE, OR THAT A CLAIM FOR
REFUND HAS BEEN FILED, WILL BE PRIMA FACIE EVIDENCE THAT THE TAX HAS NOT
BEEN PAID, THE RETURN HAS NOT BEEN FILED, THE INFORMATION HAS  NOT  BEEN
SUPPLIED, OR THE CLAIM HAS BEEN FILED.
  3.  CROSS-REFERENCE:  FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN
OF THIS CHAPTER.
  S 407. MAILING RULES; HOLIDAYS. THE RULES SET  FORTH  IN  SECTION  TWO
HUNDRED EIGHTY-NINE-D OF THIS CHAPTER APPLY TO THIS ARTICLE.
  S  408.  DEPOSIT  AND  DISPOSITION OF REVENUE. ALL TAXES, INTEREST AND
PENALTIES COLLECTED OR RECEIVED BY  THE  COMMISSIONER  UNDER  THE  TAXES
IMPOSED  BY  THIS  ARTICLE WILL BE DEPOSITED AND DISPOSED OF PURSUANT TO
THE PROVISIONS OF SECTION THREE HUNDRED TWELVE OF THIS CHAPTER.
  S 409. REFUNDS. 1. IN THE MANNER PROVIDED IN THIS SECTION, THE COMMIS-
SIONER WILL REFUND OR CREDIT ANY TAX, PENALTY, OR INTEREST  ERRONEOUSLY,
ILLEGALLY  OR UNCONSTITUTIONALLY COLLECTED OR PAID IF APPLICATION THERE-
FOR IS FILED WITH THE COMMISSIONER WITHIN THREE  YEARS  AFTER  THE  DATE
WHEN  THE  TAX,  PENALTY,  OR  INTEREST WAS PAID UNDER THIS ARTICLE. THE
APPLICATION SHALL BE IN A FORM PRESCRIBED BY THE COMMISSIONER.
  2. IF AN APPLICATION FOR REFUND OR CREDIT IS FILED  WITH  THE  COMMIS-
SIONER  AS PROVIDED IN SUBDIVISION ONE OF THIS SECTION, THE COMMISSIONER
SHALL GRANT OR DENY THAT APPLICATION IN WHOLE  OR  IN  PART  WITHIN  SIX
MONTHS  OF RECEIPT OF THE APPLICATION IN A FORM THAT IS ABLE TO BE PROC-
ESSED AND SHALL NOTIFY THE APPLICANT BY MAIL ACCORDINGLY. THAT  DETERMI-
NATION WILL BE FINAL AND IRREVOCABLE UNLESS THE APPLICANT, WITHIN NINETY
DAYS  AFTER  THE  MAILING OF NOTICE OF SUCH DETERMINATION, PETITIONS THE
DIVISION OF TAX APPEALS FOR A HEARING. AFTER THE HEARING,  THE  DIVISION
OF  TAX APPEALS WILL MAIL NOTICE OF THE DETERMINATION OF THE ADMINISTRA-
TIVE LAW JUDGE TO THE APPLICANT AND TO THE COMMISSIONER.  THAT  DETERMI-
NATION  MAY BE REVIEWED BY THE TAX APPEALS TRIBUNAL AS PROVIDED IN ARTI-
CLE FORTY OF THIS CHAPTER. THE DECISION OF THE TAX APPEALS TRIBUNAL  MAY
BE REVIEWED AS PROVIDED IN SECTION TWO THOUSAND SIXTEEN OF THIS CHAPTER.
  3.  UPON  RECEIPT OF A CLAIM FOR REFUND OR CREDIT IN PROCESSIBLE FORM,
INTEREST WILL BE ALLOWED AND PAID AT THE OVERPAYMENT  RATE  SET  BY  THE
COMMISSIONER PURSUANT TO SUBDIVISION TWENTY-SIXTH OF SECTION ONE HUNDRED
SEVENTY-ONE  OF THIS CHAPTER, OR IF NO RATE IS SET, AT THE RATE OF SEVEN
AND ONE-HALF PERCENT PER ANNUM CALCULATED FROM THE  DATE  THE  CLAIM  IS
FILED  TO  THE  DATE  IMMEDIATELY PRECEDING THE DATE OF THE REFUND CHECK
EXCEPT NO INTEREST WILL BE ALLOWED OR PAID IF THE REFUND CHECK IS MAILED
WITHIN THIRTY DAYS OF SUCH RECEIPT OR IF THE  AMOUNT  THEREOF  WOULD  BE
LESS THAN ONE DOLLAR. FOR PURPOSES OF THIS SUBDIVISION, A CLAIM WILL NOT
BE TREATED AS FILED UNTIL IT IS FILED IN PROCESSIBLE FORM. A CLAIM IS IN
A  PROCESSIBLE  FORM  IF  THE  CLAIM  IS  FILED ON A PERMITTED FORM, AND
CONTAINS THE TAXPAYER'S NAME, ADDRESS AND  IDENTIFYING  NUMBER  AND  THE
REQUIRED SIGNATURES, AND SUFFICIENT REQUIRED INFORMATION (WHETHER ON THE

S. 6610--A                         12                         A. 9710--A

CLAIM  OR  ON REQUIRED ATTACHMENTS) TO PERMIT THE MATHEMATICAL VERIFICA-
TION OF REFUND SHOWN ON THE CLAIM.
  S  410.  SECRECY.  1.  FOR  PURPOSES  OF  THIS  ARTICLE,  THE  SECRECY
PROVISIONS SET FORTH IN SECTION THREE HUNDRED FOURTEEN OF  THIS  CHAPTER
WILL APPLY.
  2.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  THIS SECTION: (A) UPON
AGREEMENT WITH THE HEAD OF THE DEPARTMENT OF ENVIRONMENTAL  CONSERVATION
OR  THE  UNITED STATES ENVIRONMENTAL PROTECTION AGENCY, THE COMMISSIONER
MAY DISCLOSE TO THAT AGENCY THE NAME, ADDRESS,  EMPLOYER  IDENTIFICATION
NUMBER,  APPLICATION STATUS INFORMATION, AND OTHER APPROPRIATE IDENTIFY-
ING AND APPLICATION INFORMATION, OF (I) PERSONS  WHOSE  APPLICATION  FOR
REGISTRATION UNDER THIS ARTICLE IS PENDING; (II) PERSONS HOLDING A VALID
REGISTRATION  UNDER THIS ARTICLE; (III) PERSONS WHOSE REGISTRATION UNDER
THIS ARTICLE HAS BEEN CANCELLED OR SUSPENDED;  AND  (IV)  PERSONS  WHOSE
REGISTRATION  APPLICATION  UNDER  THIS  ARTICLE HAS BEEN DENIED, FOR THE
PURPOSES OF IMPROVING THE SAFETY AND SECURITY OVERSIGHT OF  THE  NATURAL
GAS INDUSTRY AND COORDINATING AND STREAMLINING THE CREDENTIALING PROCESS
FOR SUCH INDUSTRY ADMINISTERED BY SUCH AGENCIES.
  (B)  ANY  INFORMATION  DISCLOSED BY THE COMMISSIONER PURSUANT TO PARA-
GRAPH (A) OF THIS SUBDIVISION MAY, PURSUANT TO SUCH AGREEMENT, BE REDIS-
CLOSED BY AND AMONG THE HEADS OF SUCH AGENCIES AND MAY  ALSO  BE  REDIS-
CLOSED  TO  THE  HEADS  OF  COMPARABLE  AGENCIES OF ANY OTHER STATE, THE
DISTRICT OF COLUMBIA OR ANY PROVINCE OR TERRITORY OF CANADA IN  FURTHER-
ANCE OF THE PURPOSES SPECIFIED IN THIS SUBDIVISION.
  3.  THE COMMISSIONER MAY REQUEST FROM THE NEW YORK STATE DEPARTMENT OF
ENVIRONMENTAL CONSERVATION AND THE NEW YORK STATE DEPARTMENT OF ENVIRON-
MENTAL CONSERVATION IS AUTHORIZED AND DIRECTED TO PROVIDE,  ANY  COOPER-
ATION  AND  ASSISTANCE, INCLUDING THE PROVISION OF RELEVANT INFORMATION,
THAT WILL ENABLE THE COMMISSIONER TO ADMINISTER THE TAX IMPOSED BY  THIS
ARTICLE.
  S  411.  LIABILITY  FOR  OTHER  TAXES NOT AFFECTED. PAYMENT OF THE TAX
IMPOSED BY THIS ARTICLE BY A PRODUCER DOES NOT AFFECT THE REQUIREMENT OF
THAT PRODUCER TO PAY ANY OTHER STATE, LOCAL, OR OTHER TAX  IMPOSED  UPON
THE PRODUCER'S REAL OR PERSONAL PROPERTY OR THE PRODUCER'S OPERATIONS.
  S  4. The tax law is amended by adding a new section 1812-g to read as
follows:
  S 1812-G. ARTICLE SEVENTEEN TAX. 1. ANY PERSON WHO WILLFULLY  ATTEMPTS
IN ANY MANNER TO EVADE OR DEFEAT ANY TAX IMPOSED BY ARTICLE SEVENTEEN 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 A CLASS E FELONY.
  2.  ANY WILLFUL ACT OR OMISSION, OTHER THAN THOSE DESCRIBED IN SECTION
EIGHTEEN HUNDRED ONE OF THIS ARTICLE OR SUBDIVISION ONE OF THIS SECTION,
BY ANY PERSON THAT AMOUNTS TO A VIOLATION OF ANY  PROVISION  OF  ARTICLE
SEVENTEEN OF THIS CHAPTER CONSTITUTES A MISDEMEANOR.
  S  5. This act shall take effect September 1, 2010; provided, however,
that persons currently severing natural gas in this state and any  other
person  who  is  or  will  be subject to the requirements of this act on
September 1, 2010 may begin submitting their certification that they are
not required to register or their applications to register as  producers
on July 1, 2010.

                                 PART B

S. 6610--A                         13                         A. 9710--A

  Section  1. Subdivision 1 of section 471 of the tax law, as amended by
section 1 of part RR-1 of chapter 57 of the laws of 2008, is amended  to
read as follows:
  1.  There  is hereby imposed and shall be paid a tax on all cigarettes
possessed in the state by any person for sale, except that no tax  shall
be  imposed  on cigarettes sold under such circumstances that this state
is without power to impose such tax or sold to the United States or sold
to or by a voluntary unincorporated organization of the armed forces  of
the  United  States  operating a place for the sale of goods pursuant to
regulations promulgated by  the  appropriate  executive  agency  of  the
United  States,  to  the  extent provided in such regulations and policy
statements of such an agency applicable to such sales. Such tax on ciga-
rettes shall be at the rate of  [two]  THREE  dollars  and  seventy-five
cents for each twenty cigarettes or fraction thereof, provided, however,
that  if  a  package of cigarettes contains more than twenty cigarettes,
the rate of tax on the cigarettes in such package in  excess  of  twenty
shall  be  [sixty-eight]  NINETY-THREE and three-quarters cents for each
five cigarettes or fraction thereof. Such tax is intended to be  imposed
upon  only  one  sale  of  the  same  package of cigarettes. It shall be
presumed that all cigarettes within the state are subject to  tax  until
the contrary is established, and the burden of proof that any cigarettes
are  not taxable hereunder shall be upon the person in possession there-
of.
  S 2. Section 471-a of the tax law, as amended by  section  2  of  part
RR-1 of chapter 57 of the laws of 2008, is amended to read as follows:
  S  471-a.  Use tax on cigarettes. There is hereby imposed and shall be
paid a tax on all cigarettes used in the state  by  any  person,  except
that  no  tax  shall  be imposed (1) if the tax provided in section four
hundred seventy-one of this article is paid, (2) on  the  use  of  ciga-
rettes  which are exempt from the tax imposed by said section, or (3) on
the use of four hundred or less cigarettes, brought into the  state  on,
or  in the possession of, any person. Such tax on cigarettes shall be at
the rate of [two] THREE dollars and seventy-five cents for  each  twenty
cigarettes  or fraction thereof, provided, however, that if a package of
cigarettes contains more than twenty cigarettes, the rate of tax on  the
cigarettes  in  such  package in excess of twenty shall be [sixty-eight]
NINETY-THREE and three-quarters cents for each five cigarettes or  frac-
tion  thereof.    Within  twenty-four  hours after liability for the tax
accrues, each such person shall file with the commissioner a  return  in
such  form  as the commissioner may prescribe together with a remittance
of the tax shown to be due thereon. For purposes of  this  article,  the
word  "use" means the exercise of any right or power actual or construc-
tive and shall include but is not limited to the receipt, storage or any
keeping or retention for any length  of  time,  but  shall  not  include
possession  for sale. All other provisions of this article if not incon-
sistent 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. Section 482 of the tax law, as amended by section 125-b of part C
of chapter 58 of the laws of 2009, is amended to read as follows:
  S 482. Deposit and disposition of revenue. (a) All taxes, fees, inter-
est and penalties collected or received by the commissioner  under  this
article  and  article  twenty-A  of  this chapter shall be deposited and
disposed of pursuant to the provisions of section one  hundred  seventy-
one-a  of  this  chapter.  (b)  From  the  taxes, interest and penalties
collected or received by the commissioner under  sections  four  hundred

S. 6610--A                         14                         A. 9710--A

seventy-one and four hundred seventy-one-a of this article, effective on
and   after   March  first,  two  thousand,  forty-nine  and  fifty-five
hundredths, and effective on and after February first, two thousand two,
forty-three  and  seventy  hundredths;  and  effective  on and after May
first, two thousand  two,  sixty-four  and  fifty-five  hundredths;  and
effective  on  and  after April first, two thousand three, sixty-one and
twenty-two hundredths percent; and effective on and  after  June  third,
two  thousand  eight,  seventy  and  sixty-three hundredths percent; AND
EFFECTIVE ON AND  AFTER  JUNE  FIRST,  TWO  THOUSAND  TEN,  SEVENTY-FIVE
PERCENT  collected or received under those sections must be deposited to
the credit of the tobacco control and insurance initiatives pool  to  be
established  and distributed by the commissioner of health in accordance
with section twenty-eight hundred seven-v of the public health law.  (c)
From  the  fees collected or received by the commissioner under subdivi-
sion two of section four hundred eighty-a of this article, effective  on
or  after  September  first,  two thousand nine, any monies collected or
received under that section in excess of three million dollars  must  be
deposited to the credit of the tobacco control and insurance initiatives
pool  to be distributed by the commissioner of health in accordance with
section twenty-eight hundred seven-v of the public health law.
  S 4. Notwithstanding any other provision of law to the  contrary,  the
tax  due  on  cigarettes  possessed in New York state as of the close of
business on June 1, 2010 by any person for sale solely  attributable  to
the increase imposed by the amendments to section 471 of the tax law, as
amended  by  section  one of this act, shall be paid by August 20, 2010,
subject to such terms and conditions as the commissioner of taxation and
finance shall prescribe.
  S 5. This act shall take effect June 2, 2010, and shall apply  to  all
cigarettes  possessed  in the state by any person for sale and all ciga-
rettes used in the state by any person on or after June 2, 2010.

                                 PART C

  Section 1. Paragraph a of subdivision twenty-sixth of section  171  of
the tax law, as amended by section 1 of subpart D of part V-1 of chapter
57 of the laws of 2009, is amended to read as follows:
  a. Set the overpayment and underpayment rates of interest for purposes
of  articles  twelve-A, SIXTEEN, 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
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.  Subdivision  1  of  section 171-a of the tax law, as amended by
section 1 of part R of chapter 60 of the laws of  2004,  is  amended  to
read as follows:

S. 6610--A                         15                         A. 9710--A

  1.  All  taxes,  interest, penalties and fees collected or received by
the commissioner or the commissioner's duly authorized agent under arti-
cles nine (except section one hundred eighty-two-a thereof and except as
otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
twelve-A  (except  as  otherwise provided in section two hundred eighty-
four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
section  three  hundred  twelve  thereof),  SIXTEEN (EXCEPT AS OTHERWISE
PROVIDED IN SECTION THREE HUNDRED SIXTY-FOUR THEREOF),  eighteen,  nine-
teen,  twenty  (except  as  otherwise  provided  in section four hundred
eighty-two thereof), twenty-one, twenty-two,  twenty-six,  twenty-six-B,
twenty-eight (except as otherwise provided in section eleven hundred two
or  eleven hundred three thereof), twenty-eight-A, thirty-one (except as
otherwise provided in  section  fourteen  hundred  twenty-one  thereof),
thirty-two,  thirty-three  and  thirty-three-A  of this chapter shall be
deposited daily in one account  with  such  responsible  banks,  banking
houses  or  trust  companies as may be designated by the comptroller, to
the credit of the comptroller. Such an account may be established in one
or more of such depositories. Such deposits shall be kept  separate  and
apart  from  all  other  money in the possession of the comptroller. The
comptroller shall require adequate security from all such  depositories.
Of  the  total revenue collected or received under such articles of this
chapter, the comptroller shall retain in the  comptroller's  hands  such
amount  as the commissioner may determine to be necessary for refunds or
reimbursements under such articles of  this  chapter  [and  article  ten
thereof]  out  of  which amount the comptroller shall pay any refunds or
reimbursements to which taxpayers shall be entitled under the provisions
of such articles of this chapter [and article ten thereof]. The  commis-
sioner  and  the comptroller shall maintain a system of accounts showing
the amount of revenue collected or  received  from  each  of  the  taxes
imposed by such articles. The comptroller, after reserving the amount to
pay such refunds or reimbursements, shall, on or before the tenth day of
each  month,  pay  into  the state treasury to the credit of the general
fund all revenue deposited  under  this  section  during  the  preceding
calendar month and remaining to the comptroller's credit on the last day
of  such  preceding  month, (i) except that the comptroller shall pay to
the state department of social services that amount of  overpayments  of
tax  imposed  by  article twenty-two of this chapter and the interest on
such amount which is certified to the comptroller by the commissioner as
the amount to be credited against past-due support pursuant to  subdivi-
sion six of section one hundred seventy-one-c of this [chapter] ARTICLE,
(ii)  and  except  that  the comptroller shall pay to the New York state
higher education services corporation and the state  university  of  New
York  or  the  city  university  of New York respectively that amount of
overpayments of tax imposed by article twenty-two of  this  chapter  and
the interest on such amount which is certified to the comptroller by the
commissioner as the amount to be credited against the amount of defaults
in  repayment  of guaranteed student loans and state university loans or
city university loans  pursuant  to  subdivision  five  of  section  one
hundred  seventy-one-d and subdivision six of section one hundred seven-
ty-one-e of this [chapter]  ARTICLE,  (iii)  and  except  further  that,
notwithstanding  any  law,  the  comptroller shall credit to the revenue
arrearage account, pursuant to section ninety-one-a of the state finance
law, that amount of overpayment of tax imposed by article nine,  nine-A,
twenty-two,  thirty,  thirty-A,  thirty-B, thirty-two or thirty-three of
this chapter, and any interest thereon, which is certified to the  comp-
troller by the commissioner as the amount to be credited against a past-

S. 6610--A                         16                         A. 9710--A

due  legally  enforceable  debt owed to a state agency pursuant to para-
graph (a) of subdivision six of section  one  hundred  seventy-one-f  of
this  article,  provided, however, he OR SHE shall credit to the special
offset  fiduciary account, pursuant to section ninety-one-c of the state
finance law, any such amount creditable as a liability as set  forth  in
paragraph (b) of subdivision six of section one hundred seventy-one-f of
this  article, (iv) and except further that the comptroller shall pay to
the city of New York that amount of overpayment of tax imposed by  arti-
cle nine, nine-A, twenty-two, thirty, thirty-A, thirty-B, thirty-two, or
thirty-three  of this chapter and any interest thereon that is certified
to the comptroller by the commissioner as  the  amount  to  be  credited
against  city  of New York tax warrant judgment debt pursuant to section
one hundred seventy-one-l of this article, (v) and except  further  that
the comptroller shall pay to a non-obligated spouse that amount of over-
payment  of  tax  imposed  by article twenty-two of this chapter and the
interest on such amount which has been credited pursuant to section  one
hundred  seventy-one-c,  one hundred seventy-one-d, one hundred seventy-
one-e, one hundred seventy-one-f or one hundred  seventy-one-l  of  this
article and which is certified to the comptroller by the commissioner as
the  amount  due  such non-obligated spouse pursuant to paragraph six of
subsection (b) of section six hundred fifty-one  of  this  chapter;  and
(vi)  the  comptroller  shall deduct a like amount which the comptroller
shall pay into the treasury to the  credit  of  the  general  fund  from
amounts  subsequently  payable to the department of social services, the
state university of New York, the city university of New  York,  or  the
higher  education services corporation, or the revenue arrearage account
or special offset fiduciary account pursuant to section ninety-one-a  or
ninety-one-c of the state finance law, as the case may be, whichever had
been  credited the amount originally withheld from such overpayment, and
(vii) with respect to amounts originally withheld from such  overpayment
pursuant  to  section one hundred seventy-one-l of this article and paid
to the city of New York, the comptroller shall  collect  a  like  amount
from the city of New York.
  S  3.  The  tax  law  is amended by adding a new article 16 to read as
follows:
                               ARTICLE 16
                 TAX ON BEVERAGE SYRUPS AND SOFT DRINKS
SECTION 350. GENERAL DEFINITIONS.
        351. IMPOSITION OF TAX.
        352. EXEMPTIONS.
        353. REGISTRATION OF DISTRIBUTORS.
        354. BONDS OF DISTRIBUTORS.
        355. CANCELLATION OR SUSPENSION OF REGISTRATION OF DISTRIBUTORS.
        356. PRESUMPTION OF TAXABILITY.
        357. RECORDS TO BE KEPT BY DISTRIBUTORS AND OTHERS; EXAMINATION.
        358. PAYMENT OF TAX; RETURNS.
        359. DETERMINATION OF TAX.
        360. PROCEEDINGS TO RECOVER TAX.
        361. PENALTIES AND INTEREST.
        362. REFUNDS.
        363. MAILING RULES; HOLIDAYS.
        364. DEPOSIT AND DISPOSITION OF REVENUE.
  S 350. GENERAL DEFINITIONS. AS USED IN THIS ARTICLE: 1. "BOTTLE" MEANS
ANY CLOSED OR SEALED GLASS, METAL,  PAPER,  PLASTIC  OR  OTHER  TYPE  OF
CONTAINER, REGARDLESS OF SIZE OR SHAPE.
  2. "BOTTLED SOFT DRINK" MEANS ANY SOFT DRINK CONTAINED IN A BOTTLE.

S. 6610--A                         17                         A. 9710--A

  3.  "DIETARY  AID"  MEANS  A  LIQUID  PRODUCT  THAT IS INTENDED BY ITS
MANUFACTURER FOR USE AS (A) A REPLACEMENT  FOR  A  DAILY  MEAL  FOR  THE
PURPOSES  OF  WEIGHT  REDUCTION,  (B)  AN ORAL NUTRITIONAL THERAPY WHERE
CALORIC AND DIETARY NUTRIENTS FROM FOOD CANNOT BE ABSORBED  OR  METABOL-
IZED, (C) A SOURCE OF NECESSARY NUTRITION DUE TO A MEDICAL CONDITION, OR
(D)  AN ORAL ELECTROLYTE SOLUTION FOR INFANTS AND CHILDREN FORMULATED TO
PREVENT DEHYDRATION DUE TO DIARRHEA OR VOMITING.
  4. "DISTRIBUTOR" MEANS ANY PERSON WHO (A)  IMPORTS  OR  CAUSES  TO  BE
IMPORTED  INTO  THE  STATE,  FOR USE, DISTRIBUTION, BOTTLING, STORAGE OR
SALE ANY (I) SYRUPS OR SIMPLE SYRUPS, (II) BOTTLED SOFT DRINKS, OR (III)
POWDERS OR BASE PRODUCTS, OR (B) PRODUCES,  REFINES,  BOTTLES,  MANUFAC-
TURES, COMPOUNDS OR MIXES (I) SYRUPS OR SIMPLE SYRUPS, (II) BOTTLED SOFT
DRINKS, OR (III) POWDERS OR BASE PRODUCTS.
  5.  "INFANT  FORMULA"  MEANS  ANY  PRODUCT,  WHETHER SOLD IN LIQUID OR
POWDER FORM, THAT IS INTENDED BY ITS  MANUFACTURER  FOR  CONSUMPTION  BY
INFANTS AND THAT IS COMMONLY REFERRED TO AS INFANT FORMULA.
  6.  "MILK"  MEANS  NATURAL LIQUID MILK, REGARDLESS OF ANIMAL SOURCE OR
BUTTERFAT CONTENT; AND NATURAL MILK CONCENTRATE, WHETHER OR  NOT  RECON-
STITUTED,  REGARDLESS  OF  ANIMAL  SOURCE OR BUTTERFAT CONTENT; OR DEHY-
DRATED NATURAL MILK, WHETHER OR NOT RECONSTITUTED.
  7. "MILK PRODUCT" MEANS ANY LIQUID THAT HAS MILK  AS  THE  PREDOMINANT
INGREDIENT  BY  WEIGHT  IN ACCORDANCE WITH THE REGULATIONS OF THE UNITED
STATES FOOD AND DRUG ADMINISTRATION.
  8. "MILK SUBSTITUTE"  MEANS  ANY  LIQUID  THAT  IS  SOY-BASED  AND  IS
INTENDED BY ITS MANUFACTURER AS A SUBSTITUTE FOR MILK.
  9.  "NATURAL FRUIT JUICE" MEANS THE ORIGINAL LIQUID RESULTING FROM THE
PRESSING OF FRUIT, THE LIQUID RESULTING FROM THE RECONSTITUTION OF FRUIT
JUICE CONCENTRATE OR THE LIQUID RESULTING FROM THE RESTORATION OF  WATER
TO DEHYDRATED FRUIT JUICE.
  10. "NATURAL VEGETABLE JUICE" MEANS THE ORIGINAL LIQUID RESULTING FROM
THE PRESSING OF VEGETABLES, THE LIQUID RESULTING FROM THE RECONSTITUTION
OF VEGETABLE JUICE CONCENTRATE OR THE LIQUID RESULTING FROM THE RESTORA-
TION OF WATER TO DEHYDRATED VEGETABLE JUICE.
  11.  "NONALCOHOLIC  BEVERAGE"  MEANS  ANY  BEVERAGE NOT SUBJECT TO TAX
UNDER ARTICLE EIGHTEEN OF THIS CHAPTER.
  12. "PERSON" INCLUDES AN INDIVIDUAL,  PARTNERSHIP,  LIMITED  LIABILITY
COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY, CORPORATION, ESTATE,
RECEIVER,  TRUSTEE,  ASSIGNEE, REFEREE, AND ANY OTHER PERSON ACTING IN A
FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER APPOINTED BY  A  COURT  OR
OTHERWISE, AND ANY COMBINATION OF THE FOREGOING.
  13.  "PLACE  OF  BUSINESS"  MEANS ANY PLACE WHERE (A) SYRUPS OR SIMPLE
SYRUPS (B) BOTTLED SOFT DRINKS, OR (C)  POWDERS  OR  BASE  PRODUCTS  ARE
EITHER MANUFACTURED OR RECEIVED.
  14.  "POWDER  OR BASE PRODUCT" MEANS A SOLID MIXTURE OF BASIC INGREDI-
ENTS USED IN MAKING, MIXING, OR COMPOUNDING SOFT DRINKS, BY  MIXING  THE
POWDER OR OTHER BASE WITH WATER, ICE, SYRUP, SIMPLE SYRUP, FRUITS, VEGE-
TABLES,  FRUIT  JUICE,  VEGETABLE JUICE OR ANY OTHER PRODUCT SUITABLE TO
MAKE A SOFT DRINK.
  15. "RETAIL DEALER" MEANS ANY PERSON, OTHER THAN  A  DISTRIBUTOR,  WHO
SELLS OR DISPENSES A SOFT DRINK TO AN ULTIMATE CONSUMER.
  16. "SALE" MEANS ANY TRANSFER OF TITLE OR POSSESSION OR BOTH, EXCHANGE
OR  BARTER,  RENTAL,  LEASE OR LICENSE TO USE OR CONSUME, CONDITIONAL OR
OTHERWISE, IN ANY MANNER OR BY ANY MEANS WHATSOEVER  FOR  CONSIDERATION,
OR ANY AGREEMENT THEREFOR.
  17. "SIMPLE SYRUP" MEANS A MIXTURE OF SUGAR AND WATER.

S. 6610--A                         18                         A. 9710--A

  18. "SOFT DRINK" MEANS ANY NONALCOHOLIC BEVERAGE, WHETHER NATURALLY OR
ARTIFICIALLY  FLAVORED,  WHETHER  CARBONATED  OR NONCARBONATED, SOLD FOR
HUMAN CONSUMPTION, CONTAINING MORE THAN TEN CALORIES PER  EIGHT  OUNCES,
INCLUDING,  BUT NOT LIMITED TO, (A) SODA, WATER, SPORTS DRINKS, "ENERGY"
DRINKS, COLAS, FLAVORED DRINKS, (B) FRUIT OR VEGETABLE DRINKS CONTAINING
LESS  THAN SEVENTY PERCENT (70%) OF NATURAL FRUIT JUICE OR NATURAL VEGE-
TABLE JUICE, OR A COMBINATION OF JUICES, ANY  FROZEN,  FREEZE-DRIED,  OR
OTHER CONCENTRATE TO WHICH WATER IS ADDED TO PRODUCE A BEVERAGE CONTAIN-
ING  LESS  THAN  SEVENTY PERCENT (70%) OF NATURAL FRUIT JUICE OR NATURAL
VEGETABLE JUICE, AND (C) COFFEE AND TEA BOTTLED AS A LIQUID FOR SALE.
  19. "SYRUP" MEANS THE LIQUID MIXTURE  OF  BASIC  INGREDIENTS  USED  IN
MAKING,  MIXING  OR  COMPOUNDING  SOFT  DRINKS, BY MIXING THE SYRUP WITH
WATER, SIMPLE SYRUP, ICE, FRUITS,  VEGETABLES,  FRUIT  JUICE,  VEGETABLE
JUICE OR ANY OTHER PRODUCT SUITABLE TO MAKE A SOFT DRINK.
  20.  "USE"  MEANS  (A)  ANY  COMPOUNDING OR MIXING OF SYRUPS OR SIMPLE
SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS  OR  BASE  PRODUCTS  WITH  OTHER
INGREDIENTS  OR  OTHER  TREATMENT  OR  (B)  THE  ACTUAL  CONSUMPTION  OR
POSSESSION FOR CONSUMPTION OF SYRUPS  OR  SIMPLE  SYRUPS,  BOTTLED  SOFT
DRINKS, OR POWDERS OR BASE PRODUCTS AS A BEVERAGE OR OTHERWISE.
  S 351. IMPOSITION OF TAX. 1. THERE ARE LEVIED AND IMPOSED TAXES AT THE
FOLLOWING RATES ON:
  (A)  SYRUPS  OR SIMPLE SYRUPS, THE TAX RATE SHALL BE SEVEN DOLLARS AND
SIXTY-EIGHT CENTS PER GALLON BASED ON ONE GALLON BEING CONSTITUTED  INTO
SEVEN HUNDRED SIXTY-EIGHT OUNCES OF SOFT DRINK. IN THE EVENT SUCH GALLON
OF  SYRUP  OR  SIMPLE SYRUP RECONSTITUTES A GREATER AMOUNT OF SOFT DRINK
THE RATE OF TAX PER GALLON SHALL BE INCREASED PROPORTIONALLY TO BE BASED
ON THE ACTUAL NUMBER OF FLUID OUNCES OF  SOFT  DRINK  PRODUCED  BY  SUCH
GALLON  OF  SYRUP  OR  SIMPLE  SYRUP  BY  FOLLOWING  THE  MANUFACTURER'S
DIRECTIONS;
  (B) BOTTLED SOFT DRINKS, THE TAX RATE SHALL BE ONE DOLLAR AND  TWENTY-
EIGHT CENTS PER GALLON; AND
  (C)  POWDERS  OR  BASE  PRODUCTS, THE TAX RATE SHALL BE ONE DOLLAR AND
TWENTY-EIGHT CENTS FOR EACH GALLON OF SOFT DRINK THAT  MAY  BE  PRODUCED
FROM  EACH PACKAGE OR CONTAINER OF POWDERS OR BASE PRODUCTS BY FOLLOWING
THE MANUFACTURER'S DIRECTIONS.
  2. THE TAXES SHALL BE IMPOSED WHEN THE (A) SYRUPS  OR  SIMPLE  SYRUPS,
BOTTLED  SOFT  DRINKS,  OR POWDERS OR BASE PRODUCTS ARE IMPORTED INTO OR
CAUSED TO BE IMPORTED INTO THE STATE FOR  USE,  DISTRIBUTION,  BOTTLING,
STORAGE,  OR  SALE  IN  THE  STATE  OR (B) UPON SYRUPS OR SIMPLE SYRUPS,
BOTTLED SOFT DRINKS, OR POWDERS OR BASE  PRODUCTS  WHICH  ARE  PRODUCED,
REFINED,  BOTTLED, MANUFACTURED, COMPOUNDED OR MIXED BY A DISTRIBUTOR IN
THE STATE (WHICH ACTS SHALL HEREINAFTER IN THIS  SUBDIVISION  BE  ENCOM-
PASSED BY THE PHRASE "IMPORTED OR MANUFACTURED").
  3. FOR PURPOSES OF THIS CHAPTER, IT IS PRESUMED THAT SYRUPS AND SIMPLE
SYRUPS  ARE  POSSESSED FOR THE PURPOSE OF SALE IN THIS STATE. IT IS ALSO
PRESUMED THAT BOTTLED SOFT  DRINKS  OR  POWDERS  OR  BASE  PRODUCTS  ARE
POSSESSED  FOR  THE  PURPOSE  OF  SALE  IN THIS STATE IF THE QUANTITY OF
BOTTLED SOFT DRINKS OR POWDERS OR BASE PRODUCTS POSSESSED IN THIS STATE,
IMPORTED OR CAUSED TO BE IMPORTED INTO THIS STATE OR PRODUCED,  REFINED,
BOTTLED,  MANUFACTURED,  COMPOUNDED  OR MIXED IN THIS STATE EXCEEDS FIVE
GALLONS. SUCH  PRESUMPTION  MAY  BE  REBUTTED  BY  THE  INTRODUCTION  OF
SUBSTANTIAL  EVIDENCE TO THE CONTRARY. IN ANY CASE WHERE THE QUANTITY OF
SYRUPS AND SIMPLE  SYRUPS,  BOTTLE  SOFT  DRINKS,  OR  POWDERS  OR  BASE
PRODUCTS  TAXABLE  PURSUANT  TO THIS ARTICLE IS A FRACTIONAL PART OF ONE
GALLON OR AN AMOUNT GREATER THAN A WHOLE MULTIPLE OF GALLONS, THE AMOUNT
OF TAX LEVIED AND IMPOSED ON SUCH FRACTIONAL  PART  OF  ONE  GALLON,  OR

S. 6610--A                         19                         A. 9710--A

FRACTIONAL  PART  OF  A  GALLON IN EXCESS OF A WHOLE MULTIPLE OF GALLONS
SHALL BE SUCH FRACTIONAL PART OF THE RATE IMPOSED BY SUBDIVISION ONE  OF
THIS SECTION.
  4.  WHEN  A  RETAILER  PURCHASES SYRUPS OR SIMPLE SYRUPS, BOTTLED SOFT
DRINKS, OR POWDERS OR BASE PRODUCTS FROM ANY PERSON NOT REGISTERED AS  A
DISTRIBUTOR,  THE RETAILER SHALL BE LIABLE FOR THE TAX IMPOSED IN SUBDI-
VISION ONE OF THIS SECTION.
  5. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO REQUIRE  THE  PAYMENT
TO  THE  DEPARTMENT  OF  THE  TAXES  IMPOSED BY THIS ARTICLE ON THE SAME
GALLON OF PRODUCT MORE THAN ONCE.
  S 352. EXEMPTIONS. THE FOLLOWING SHALL BE EXEMPT FROM THE TAX  IMPOSED
BY THIS ARTICLE ON:
  1. PRODUCTS.
  (A) DIETARY AIDS.
  (B) INFANT FORMULA.
  (C) MILK, MILK PRODUCTS AND MILK SUBSTITUTES.
  2.  EXPORTS.  SYRUPS OR SIMPLE SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS
OR BASE PRODUCTS IMPORTED OR CAUSED TO BE IMPORTED INTO  THIS  STATE  OR
PRODUCED,  REFINED,  BOTTLED,  MANUFACTURED, COMPOUNDED OR MIXED IN THIS
STATE BY A DISTRIBUTOR, WHERE SUCH DISTRIBUTOR OR THE IMMEDIATE PURCHAS-
ER OF SUCH SYRUPS OR SIMPLE SYRUPS, BOTTLED SOFT DRINKS, OR  POWDERS  OR
BASE  PRODUCTS  EXPORTS  SUCH  PRODUCTS  FROM THIS STATE FOR SALE OR USE
OUTSIDE THE STATE. IN ORDER TO RECEIVE  THIS  EXEMPTION,  A  DISTRIBUTOR
SHALL  HAVE  TO  COMPLY WITH ALL EVIDENTIARY REQUIREMENTS OF THE COMMIS-
SIONER.
  3. SALES TO THE FEDERAL GOVERNMENT. SYRUPS OR SIMPLE  SYRUPS,  BOTTLED
SOFT  DRINKS,  OR  POWDERS  OR  BASE  PRODUCTS  IMPORTED OR CAUSED TO BE
IMPORTED INTO THIS STATE OR PRODUCED,  REFINED,  BOTTLED,  MANUFACTURED,
COMPOUNDED  OR  MIXED  IN  THIS STATE BY A DISTRIBUTOR, AND THEN SOLD BY
SUCH DISTRIBUTOR TO AN ORGANIZATION DESCRIBED IN PARAGRAPH TWO OF SUBDI-
VISION (A) OF SECTION ELEVEN HUNDRED SIXTEEN OF THIS CHAPTER WHERE  SUCH
SYRUPS  OR  SIMPLE  SYRUPS,  BOTTLED  SOFT  DRINKS,  OR  POWDERS OR BASE
PRODUCTS ARE USED BY SUCH ORGANIZATION FOR ITS OWN USE OR CONSUMPTION.
  4. IMPORTATION FOR PERSONAL USE AND CONSUMPTION. BOTTLED  SOFT  DRINKS
OR  POWDERS OR BASE PRODUCTS IMPORTED OR CAUSED TO BE IMPORTED INTO THIS
STATE IN THE POSSESSION OF AN INDIVIDUAL IN THE AMOUNT OF ONE GALLON  OR
LESS PER MONTH FOR SUCH INDIVIDUAL'S OWN USE AND CONSUMPTION.
  5.  MANUFACTURE FOR PERSONAL USE AND CONSUMPTION. SOFT DRINKS MANUFAC-
TURED FOR SUCH INDIVIDUAL'S OWN USE AND CONSUMPTION AND NOT FOR RESALE.
  6. SUGAR ADDED AT THE REQUEST OF PURCHASER. THE TAX DOES NOT APPLY  TO
INDIVIDUAL SERVINGS OF A BEVERAGE THAT WOULD NOT OTHERWISE BE SUBJECT TO
TAX  AS A SOFT DRINK IF SUGAR IS ADDED BY THE RETAILER AT THE REQUEST OF
THE PURCHASER AT THE TIME OF SALE.
  S 353. REGISTRATION OF DISTRIBUTORS.   1.  (A)  THE  COMMISSIONER  MAY
REGISTER  PERSONS AS DISTRIBUTORS UNDER THIS ARTICLE AS THE COMMISSIONER
SHALL PRESCRIBE. IF THE COMMISSIONER REGISTERS DISTRIBUTORS, THE COMMIS-
SIONER SHALL REGISTER DISTRIBUTORS UPON APPLICATION.    THE  APPLICATION
SHALL  BE  IN  A  FORM  AND  CONTAIN SUCH DATA AS THE COMMISSIONER SHALL
PRESCRIBE.
  (B)  IF  THE  COMMISSIONER  REGISTERS  DISTRIBUTORS,   THE   FOLLOWING
PROVISIONS APPLY. NO PERSON, UNLESS SO REGISTERED, SHALL IMPORT OR CAUSE
ANY  SYRUPS  OR  SIMPLE  SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS OR BASE
PRODUCTS TO BE IMPORTED INTO THE STATE, FOR USE,  DISTRIBUTION,  STORAGE
OR  SALE WITHIN THE STATE OR SHALL PRODUCE, REFINE, BOTTLE, MANUFACTURE,
COMPOUND OR MIX SYRUPS OR SIMPLE SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS
OR BASE PRODUCTS WITHIN THE STATE. NO DISTRIBUTOR, UNLESS SO REGISTERED,

S. 6610--A                         20                         A. 9710--A

SHALL MAKE ANY SALE, TRANSFER, USE OR OTHER  DISPOSITION  OF  SYRUPS  OR
SIMPLE  SYRUPS,  BOTTLED SOFT DRINKS, OR POWDERS OR BASE PRODUCTS WITHIN
THIS STATE, EXCEPT A SALE, TRANSFER, USE OR DISPOSITION, IF ANY,  AS  TO
WHICH  THIS  STATE  CANNOT IMPOSE SUCH CONDITION BY REASON OF THE UNITED
STATES CONSTITUTION AND OF LAWS OF THE UNITED  STATES  ENACTED  PURSUANT
THERETO.   PROVIDED, HOWEVER, THAT THE COMMISSIONER MAY EXCLUDE FROM THE
REGISTRATION REQUIREMENTS, ANY PERSON WHO IS A DISTRIBUTOR OF SYRUPS  OR
SIMPLE  SYRUPS,  BOTTLED SOFT DRINKS, OR POWDERS OR BASE PRODUCTS SOLELY
BY REASON OF THE IMPORTATION INTO  THIS  STATE  OF  NO  MORE  THAN  FIVE
GALLONS  OF  BOTTLED  SOFT DRINKS OR POWDERS OR BASE PRODUCTS SUBJECT TO
TAX BY THIS ARTICLE EACH  MONTH  FOR  SUCH  PERSON'S  PERSONAL  USE  AND
CONSUMPTION.
  2. IF THE COMMISSIONER REGISTERS DISTRIBUTORS, THE REGISTRATION GRANT-
ED  TO  A  DISTRIBUTOR  BY  THE  COMMISSIONER SHALL NOT BE ASSIGNABLE OR
TRANSFERABLE.
  S 354.  BONDS  OF  DISTRIBUTORS.  1.  IF  THE  COMMISSIONER  REGISTERS
DISTRIBUTORS,  THE  COMMISSIONER  MAY  ALSO REQUIRE BONDS AS PROVIDED IN
THIS SECTION.
  2. THE COMMISSIONER MAY REQUIRE A DISTRIBUTOR TO FILE WITH THE COMMIS-
SIONER A BOND ISSUED BY A SURETY COMPANY APPROVED BY THE  SUPERINTENDENT
OF  INSURANCE AS TO SOLVENCY AND RESPONSIBILITY AND AUTHORIZED TO TRANS-
ACT BUSINESS IN THIS STATE OR ANOTHER SECURITY ACCEPTABLE TO THE COMMIS-
SIONER, IN SUCH AMOUNT FIXED BY THE COMMISSIONER TO SECURE  THE  PAYMENT
OF ANY SUMS DUE FROM SUCH DISTRIBUTOR PURSUANT TO THIS ARTICLE.
  3.  THE  COMMISSIONER  MAY  REQUIRE THAT THE BOND OR OTHER SECURITY BE
FILED BEFORE A DISTRIBUTOR IS REGISTERED, OR AT ANY TIME WHEN IN HIS  OR
HER  JUDGMENT  A  BOND  IS  NECESSARY FOR THE PROTECTION OF THE REVENUES
UNDER THIS ARTICLE.
  4. THE COMMISSIONER MAY REQUIRE THAT THE AMOUNT OF  A  BOND  OR  OTHER
SECURITY  BE  INCREASED  AT  ANY  TIME WHEN, IN HIS OR HER JUDGMENT, THE
INCREASE IS NECESSARY AS A PROTECTION TO THE REVENUES UNDER  THIS  ARTI-
CLE.
  5.  IF  SECURITIES  ARE DEPOSITED UNDER THIS SECTION, THESE SECURITIES
SHALL BE KEPT IN THE JOINT CUSTODY OF THE COMPTROLLER  AND  THE  COMMIS-
SIONER  AND  MAY BE SOLD BY THE COMMISSIONER IF A SALE BECOMES NECESSARY
TO RECOVER ANY SUMS DUE FROM THE DISTRIBUTOR PURSUANT TO  THIS  ARTICLE,
BUT  NO SALE SHALL BE HELD UNTIL AFTER THE DISTRIBUTOR SHALL HAVE HAD AN
OPPORTUNITY TO LITIGATE THE VALIDITY OF ANY TAX. AFTER ANY SALE  OF  THE
SECURITIES,  THE  SURPLUS  AMOUNT, IF ANY, ABOVE THE SUMS DUE UNDER THIS
ARTICLE SHALL BE RETURNED TO THE DISTRIBUTOR.
  S 355. CANCELLATION OR SUSPENSION OF REGISTRATION OF DISTRIBUTORS.  IF
THE   COMMISSIONER  REGISTERS  DISTRIBUTORS,  THE  REGISTRATION  OF  ANY
DISTRIBUTOR MAY BE CANCELLED BY THE COMMISSIONER  UPON  A  DISTRIBUTOR'S
FAILURE  TO  FILE A BOND OR OTHER SECURITY WHEN REQUIRED, AND THE REGIS-
TRATION OF A DISTRIBUTOR MAY BE CANCELLED BY  THE  COMMISSIONER  UPON  A
DISTRIBUTOR'S FAILURE TO COMPLY WITH ANY OF THE PROVISIONS OF THIS ARTI-
CLE  OR  ANY REASONABLE REQUIREMENT, RULE OR REGULATION ADOPTED PURSUANT
TO THIS ARTICLE. ALL THE PROVISIONS OF SUBDIVISIONS FOUR THROUGH SIX AND
EIGHT THROUGH TEN OF SECTION TWO HUNDRED EIGHTY-THREE  OF  THIS  CHAPTER
RELATING TO REGISTRATION OF DISTRIBUTORS OF MOTOR FUEL SHALL BE APPLICA-
BLE TO THE REGISTRATION OF DISTRIBUTORS UNDER THIS ARTICLE WITH THE SAME
FORCE  AND  EFFECT  AS  IF  THE  LANGUAGE OF THOSE SUBDIVISIONS HAD BEEN
INCORPORATED IN FULL IN THIS SECTION AND HAD EXPRESSLY REFERRED  TO  THE
REGISTRATION  OF  DISTRIBUTORS UNDER THIS ARTICLE AND THE TAX IMPOSED BY
THIS ARTICLE, WITH SUCH MODIFICATION AS MAY BE  NECESSARY  IN  ORDER  TO
ADAPT THE LANGUAGE OF SUCH PROVISIONS TO THE PROVISIONS OF THIS ARTICLE,

S. 6610--A                         21                         A. 9710--A

PROVIDED,  SPECIFICALLY,  THAT  THE  TERM  "MOTOR FUEL" SHALL BE READ AS
"SYRUPS OR SIMPLE SYRUPS,  BOTTLED  SOFT  DRINKS,  OR  POWDERS  OR  BASE
PRODUCTS".
  S  356.  PRESUMPTION OF TAXABILITY. 1. NO PERSON SHALL PURCHASE SYRUPS
OR SIMPLE SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS OR  BASE  PRODUCTS  IN
THIS  STATE, EXCLUDING A PURCHASE AT RETAIL, UNLESS THE TAXES IMPOSED BY
THIS ARTICLE HAVE BEEN ASSUMED BY A DISTRIBUTOR  IN  ACCORDANCE  WITH  A
CERTIFICATION  UNDER  SUBDIVISION  TWO  OF  THIS SECTION OR PAID BY SUCH
DISTRIBUTOR. IN ADDITION TO ANY OTHER CIVIL AND CRIMINAL PENALTIES WHICH
MAY APPLY, ANY PERSON WHO PURCHASES SYRUPS  OR  SIMPLE  SYRUPS,  BOTTLED
SOFT  DRINKS,  OR  POWDERS  OR  BASE  PRODUCTS WITHOUT HAVING RECEIVED A
CERTIFICATION FROM THE SELLER IN ACCORDANCE WITH SUBDIVISION TWO OF THIS
SECTION SHALL BE JOINTLY AND SEVERALLY LIABLE TO PAY THE  TAXES  IMPOSED
BY  THIS  ARTICLE  WITH RESPECT TO SUCH SYRUPS OR SIMPLE SYRUPS, BOTTLED
SOFT DRINKS, OR POWDERS OR BASE PRODUCTS.
  2. (A) UPON EACH SALE OF SYRUPS OR SIMPLE SYRUPS, BOTTLED SOFT DRINKS,
OR POWDERS OR BASE PRODUCTS, OTHER THAN A SALE  AT  RETAIL,  THE  SELLER
MUST  GIVE  TO THE PURCHASER AND THE PURCHASER SHALL RECEIVE AT THE TIME
OF DELIVERY OF SUCH SALE  OF  SYRUPS  OR  SIMPLE  SYRUPS,  BOTTLED  SOFT
DRINKS,  OR  POWDERS  OR  BASE PRODUCTS, A CERTIFICATION CONTAINING SUCH
INFORMATION AS THE COMMISSIONER SHALL  REQUIRE  WHICH  SHALL  INCLUDE  A
STATEMENT  TO  THE EFFECT THAT THE SELLER ASSUMED THE PAYMENT OF OR PAID
THE TAXES IMPOSED BY THIS ARTICLE.
  (B) IF  THE  CERTIFICATION  REQUIRED  BY  THIS  SUBDIVISION  HAS  BEEN
FURNISHED  TO  THE PURCHASER AT DELIVERY AND ACCEPTED IN GOOD FAITH, THE
BURDEN OF PROVING THAT THE TAXES IMPOSED BY THIS ARTICLE WERE ASSUMED OR
PAID BY A DISTRIBUTOR SHALL BE SOLELY ON THE SELLER.
  (C) WHERE THE CERTIFICATION REQUIRED UNDER  THIS  SUBDIVISION  IS  NOT
FURNISHED  BY  THE  SELLER  AT  DELIVERY OF THE SYRUPS OR SIMPLE SYRUPS,
BOTTLED SOFT DRINKS, OR POWDERS OR BASE PRODUCTS, IT SHALL  BE  PRESUMED
THAT  THE TAXES IMPOSED BY THIS ARTICLE HAVE NOT BEEN ASSUMED OR PAID BY
A DISTRIBUTOR AND THAT  THE  PURCHASER  IN  SUCH  CASE  IS  JOINTLY  AND
SEVERALLY LIABLE FOR SUCH TAXES.
  (D)  IF,  DUE  TO THE CIRCUMSTANCES OF DELIVERY, IT IS NOT POSSIBLE TO
ISSUE A CERTIFICATION REQUIRED UNDER THIS SUBDIVISION  AT  THE  TIME  OF
DELIVERY  OF SYRUPS OR SIMPLE SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS OR
BASE PRODUCTS, THE  COMMISSIONER  MAY  AUTHORIZE  THE  DELIVERY  OF  THE
CERTIFICATION REQUIRED UNDER THIS SUBDIVISION AT A TIME AFTER THE DELIV-
ERY  OF  THE SYRUPS OR SIMPLE SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS OR
BASE PRODUCTS WHICH ARE THE  SUBJECT  OF  THE  SALE  UNDER  THE  LIMITED
CIRCUMSTANCES  HE  OR SHE SHALL PRESCRIBE AND UPON SUCH TERMS AND CONDI-
TIONS HE OR SHE SHALL DEEM NECESSARY TO ENSURE COLLECTION OF  THE  TAXES
IMPOSED BY THIS ARTICLE.
  S  357. RECORDS TO BE KEPT BY DISTRIBUTORS AND OTHERS; EXAMINATION. 1.
EVERY DISTRIBUTOR WHO IMPORTS OR CAUSES TO BE IMPORTED INTO THIS  STATE,
OR  WHO  PRODUCES,  REFINES,  BOTTLES,  MANUFACTURES, COMPOUNDS OR MIXES
WITHIN THIS STATE, SHALL KEEP A COMPLETE  AND  ACCURATE  RECORD  OF  ALL
PURCHASES  AND  SALES,  USES  OR  OTHER DISPOSITIONS OF SYRUPS OR SIMPLE
SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS OR BASE PRODUCTS, AND A COMPLETE
AND ACCURATE RECORD OF THE NUMBER OF GALLONS OF SYRUPS OR SIMPLE SYRUPS,
BOTTLED SOFT DRINKS, OR POWDERS OR  BASE  PRODUCTS,  PRODUCED,  REFINED,
BOTTLED,  MANUFACTURED,  COMPOUNDED  AND MIXED. SUCH RECORDS SHALL BE IN
THE FORM AND CONTAIN WHATEVER OTHER  INFORMATION  THE  COMMISSIONER  MAY
PRESCRIBE.  SUCH  RECORDS,  UNLESS  REQUIRED  BY  THE COMMISSIONER TO BE
PRESERVED FOR A LONGER PERIOD, SHALL BE PRESERVED FOR A PERIOD OF  THREE
YEARS AND SHALL BE OFFERED FOR INSPECTION AT ANY TIME UPON ORAL OR WRIT-

S. 6610--A                         22                         A. 9710--A

TEN  DEMAND  BY  THE  COMMISSIONER OR THE COMMISSIONER'S DULY AUTHORIZED
AGENTS, AND EVERY SUCH  DISTRIBUTOR  SHALL  MAKE  SUCH  REPORTS  TO  THE
COMMISSIONER  AS  MAY  BE  REQUIRED  BY  THE COMMISSIONER. TO VERIFY THE
AMOUNT OF TAX DUE UNDER THIS ARTICLE, EACH PERSON IS HEREBY DIRECTED AND
REQUIRED  TO GIVE TO THE COMMISSIONER OR THE COMMISSIONER'S DULY AUTHOR-
IZED REPRESENTATIVES THE MEANS, FACILITIES,  AND  OPPORTUNITY  FOR  SUCH
EXAMINATIONS AS ARE HEREIN PROVIDED FOR AND REQUIRED.
  2.  EVERY  PERSON  WHO SHALL POSSESS OR TRANSPORT ANY SYRUPS OR SIMPLE
SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS OR BASE PRODUCTS UPON THE PUBLIC
HIGHWAYS, ROADS OR STREETS OF THE STATE, SHALL BE REQUIRED  TO  HAVE  IN
HIS  OR  HER  ACTUAL  POSSESSION  INVOICES  OR DELIVERY TICKETS FOR SUCH
SYRUPS OR SIMPLE  SYRUPS,  BOTTLED  SOFT  DRINKS,  OR  POWDERS  OR  BASE
PRODUCTS.  SUCH  INVOICES  OR  DELIVERY  TICKETS SHALL SHOW THE NAME AND
ADDRESS OF THE  CONSIGNOR  OR  SELLER,  THE  NAME  AND  ADDRESS  OF  THE
CONSIGNEE  OR PURCHASER, THE QUANTITY AND BRANDS OF THE SYRUPS OR SIMPLE
SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS OR  BASE  PRODUCTS  TRANSPORTED,
AND  THE  NAME  AND  ADDRESS  OF  THE PERSON WHO HAS OR SHALL ASSUME THE
PAYMENT OF THE TAX. THE ABSENCE OF SUCH  INVOICES  OR  DELIVERY  TICKETS
SHALL  BE  PRIMA  FACIE  EVIDENCE  THAT  SUCH PERSON IS A DISTRIBUTOR OF
SYRUPS OR SIMPLE  SYRUPS,  BOTTLED  SOFT  DRINKS,  OR  POWDERS  OR  BASE
PRODUCTS.  NOTHING  CONTAINED  IN  THIS  SECTION  SHALL  BE CONSTRUED TO
REQUIRE THE KEEPING OF A RECORD OF PURCHASE OR DISPOSITION OF SYRUPS  OR
SIMPLE  SYRUPS,  BOTTLED  SOFT  DRINKS, OR POWDERS OR BASE PRODUCTS BY A
CONSUMER THEREOF, EXCEPT BY A PERSON WHO USES THE  SAME  FOR  COMMERCIAL
PURPOSES,  OR  OF  THE  SALE  OF  SYRUPS  OR SIMPLE SYRUPS, BOTTLED SOFT
DRINKS, OR POWDERS OR BASE PRODUCTS AT RETAIL.
  3. THE COMMISSIONER MAY, BY REGULATION,  PROVIDE  FOR  THE  FILING  OF
MONTHLY INFORMATION RETURNS BY EVERY PERSON REQUIRED TO MAINTAIN RECORDS
AS PRESCRIBED IN SUBDIVISION ONE OF THIS SECTION. THESE RETURNS SHALL IN
ALL  MATERIAL  RESPECTS REFLECT THE INFORMATION REQUIRED TO BE CONTAINED
IN THOSE RECORDS.  THESE RETURNS SHALL BE IN THE FORM  AND  CONTAIN  ALL
OTHER INFORMATION THE COMMISSIONER MAY REQUIRE.
  S  358.  PAYMENT  OF  TAX;  RETURNS. 1. EVERY DISTRIBUTOR SHALL, ON OR
BEFORE THE TWENTIETH DAY OF EACH MONTH, FILE  WITH  THE  COMMISSIONER  A
RETURN,  ON  FORMS  TO  BE PRESCRIBED AND FURNISHED BY THE COMMISSIONER,
STATING THE NUMBER OF GALLONS OF SYRUPS OR SIMPLE SYRUPS,  BOTTLED  SOFT
DRINKS,  OR  POWDERS OR BASE PRODUCTS IMPORTED OR CAUSED TO BE IMPORTED,
PRODUCED, REFINED, BOTTLED, MANUFACTURED, COMPOUNDED  OR  MIXED  BY  THE
DISTRIBUTOR  IN  THE  STATE  DURING THE PRECEDING CALENDAR MONTH AND ANY
OTHER INFORMATION THAT THE  COMMISSIONER  MAY  REQUIRE  FOR  THE  PROPER
ENFORCEMENT OF THE PROVISIONS OF THIS ARTICLE.
  2. THE COMMISSIONER MAY ALSO, IF HE OR SHE DEEMS IT NECESSARY IN ORDER
TO  INSURE  THE  PAYMENT  OF  THE TAXES IMPOSED BY THIS ARTICLE, REQUIRE
RETURNS TO BE MADE AT SUCH TIMES AND COVERING SUCH PERIODS AS HE OR  SHE
MAY DEEM NECESSARY, AND, BY REGULATION, MAY PERMIT THE FILING OF RETURNS
BY  DISTRIBUTORS  ON  A  QUARTERLY, SEMI-ANNUAL, OR ANNUAL BASIS, OR MAY
WAIVE THE FILING OF RETURNS BY A DISTRIBUTOR FOR SUCH TIME AND UPON SUCH
TERMS AS HE OR SHE MAY DEEM PROPER IF SATISFIED THAT NO TAX  IMPOSED  BY
THIS  ARTICLE  IS OR SHALL BE PAYABLE BY THE DISTRIBUTOR DURING THE TIME
FOR WHICH RETURNS ARE WAIVED. SUCH RETURNS SHALL  CONTAIN  SUCH  FURTHER
INFORMATION AS THE COMMISSIONER SHALL REQUIRE.
  3.  THE  COMMISSIONER  MAY REQUIRE EACH DISTRIBUTOR UNDER THIS ARTICLE
TO:
  (A) ELECTRONICALLY PAY OVER TO THE COMMISSIONER ALL TAXES COLLECTED;
  (B) ELECTRONICALLY FILE A RETURN WITH THE COMMISSIONER; AND

S. 6610--A                         23                         A. 9710--A

  (C) ELECTRONICALLY FILE A RETURN INDICATING THAT NO TAX IS DUE  IF  NO
TAX IS DUE.
  4.  THE  FACT  THAT  A  DISTRIBUTOR'S NAME IS SIGNED TO A FILED RETURN
SHALL BE PRIMA FACIE EVIDENCE FOR ALL PURPOSES THAT THE RETURN WAS ACTU-
ALLY SIGNED BY THAT DISTRIBUTOR. EACH SUCH DISTRIBUTOR SHALL PAY TO  THE
COMMISSIONER  WITH  THE  FILING OF THE RETURN, THE TAXES IMPOSED BY THIS
ARTICLE DURING THE PERIOD COVERED BY THE RETURN.
  5. A DISTRIBUTOR WHO IS ENTITLED TO A REFUND UNDER THE  PROVISIONS  OF
SECTION THREE HUNDRED SIXTY-TWO OF THIS ARTICLE, IN LIEU OF SUCH REFUND,
MAY  TAKE  CREDIT  THEREFOR  ON A RETURN FILED PURSUANT TO THIS SECTION,
UNLESS THE COMMISSIONER WITHDRAWS THAT PRIVILEGE.
  S 359. DETERMINATION OF TAX. 1. EXCEPT AS OTHERWISE PROVIDED  IN  THIS
SECTION,  IF  A  DISTRIBUTOR FILES A RETURN UNDER THIS ARTICLE, BUT THAT
RETURN IS INCORRECT OR INSUFFICIENT, THE  COMMISSIONER  SHALL  DETERMINE
THE  AMOUNT  OF  TAX DUE AT ANY TIME WITHIN THREE YEARS AFTER THE RETURN
WAS FILED (WHETHER OR NOT SUCH RETURN WAS FILED  ON  OR  AFTER  THE  DUE
DATE), AND GIVE WRITTEN NOTICE OF THAT DETERMINATION TO THE DISTRIBUTOR.
FOR THE PURPOSES OF THIS SECTION THE TERM DISTRIBUTOR SHALL ALSO INCLUDE
ANY OTHER PERSON LIABLE FOR THE TAXES IMPOSED BY THIS ARTICLE.
  2.  THE COMMISSIONER SHALL DETERMINE THE AMOUNT OF TAX DUE AT ANY TIME
IF A DISTRIBUTOR (A) HAS NOT REGISTERED AS REQUIRED BY THIS ARTICLE, (B)
FAILS TO FILE A RETURN, OR (C) WILLFULLY DELIVERS OR  DISCLOSES  TO  THE
COMMISSIONER  ANY  LIST,  RETURN,  REPORT,  ACCOUNT, STATEMENT, OR OTHER
DOCUMENT KNOWN BY THE DISTRIBUTOR TO BE FRAUDULENT OR TO BE FALSE AS  TO
ANY  MATERIAL  MATTER,  OR  OMITS  ANY  MATERIAL  MATTER  WITH INTENT TO
DECEIVE.
  3. NOTWITHSTANDING ANY OF THE FOREGOING PROVISIONS  OF  THIS  SECTION,
WHERE,  BEFORE THE EXPIRATION OF THE TIME PRESCRIBED IN THIS SECTION FOR
THE DETERMINATION OF TAX, BOTH THE COMMISSIONER AND THE DISTRIBUTOR HAVE
CONSENTED IN WRITING TO ITS DETERMINATION AFTER SUCH TIME, THE  TAX  MAY
BE  DETERMINED  AT ANY TIME PRIOR TO THE EXPIRATION OF THE PERIOD AGREED
UPON. THE PERIOD SO AGREED UPON MAY BE EXTENDED BY SUBSEQUENT AGREEMENTS
IN WRITING MADE BEFORE THE EXPIRATION OF THE  PERIOD  PREVIOUSLY  AGREED
UPON.
  4.  ANY  DETERMINATION  MADE PURSUANT TO THIS SECTION WILL FINALLY AND
IRREVOCABLY FIX THE TAX  UNLESS  THE  DISTRIBUTOR  AGAINST  WHOM  IT  IS
ASSESSED, WITHIN NINETY DAYS AFTER THE GIVING OF NOTICE OF SUCH DETERMI-
NATION,  PETITIONS  THE DIVISION OF TAX APPEALS FOR A HEARING, OR UNLESS
THE COMMISSIONER, ON HIS OR HER  OWN  MOTION,  RE-DETERMINES  THE  SAME.
AFTER SUCH HEARING, THE DIVISION OF TAX APPEALS SHALL GIVE NOTICE OF THE
DETERMINATION  OF THE ADMINISTRATIVE LAW JUDGE TO THE DISTRIBUTOR LIABLE
FOR THE TAX AND TO THE COMMISSIONER. THAT DETERMINATION MAY BE  REVIEWED
BY  THE  TAX APPEALS TRIBUNAL AS PROVIDED IN ARTICLE FORTY OF THIS CHAP-
TER. THE DECISION OF  THE  TAX  APPEALS  TRIBUNAL  MAY  BE  REVIEWED  AS
PROVIDED  IN  SECTION  TWO  THOUSAND  SIXTEEN  OF  THIS CHAPTER, BUT THE
PROCEEDING MAY NOT BE COMMENCED UNLESS  THE  AMOUNT  OF  TAX  STATED  OR
REFERRED  TO  IN  THE  DECISION, WITH PENALTIES AND INTEREST THEREON, IF
ANY, AND THE AMOUNT OF ANY OTHER PENALTY STATED OR REFERRED  TO  IN  THE
DECISION, IS FIRST DEPOSITED WITH THE COMMISSIONER.
  5. THE REMEDY PROVIDED BY THIS SECTION FOR REVIEW OF A DECISION OF THE
TAX  APPEALS  TRIBUNAL IS THE EXCLUSIVE REMEDY AVAILABLE TO ANY TAXPAYER
FOR JUDICIAL DETERMINATION OF THE LIABILITY OF THE  TAXPAYER  FOR  TAXES
UNDER THIS ARTICLE.
  S 360. PROCEEDINGS TO RECOVER TAX. WHENEVER ANY DISTRIBUTOR SHALL FAIL
TO  PAY,  WITHIN  THE  TIME  LIMITED  HEREIN, ANY TAX WHICH HE OR SHE IS
REQUIRED TO PAY UNDER THE  PROVISIONS  OF  THIS  ARTICLE,  THE  ATTORNEY

S. 6610--A                         24                         A. 9710--A

GENERAL  SHALL,  UPON  THE REQUEST OF THE DEPARTMENT, ENFORCE PAYMENT OF
SUCH TAX BY CIVIL ACTION IN THE SUPREME COURT, IN THE NAME OF THE PEOPLE
OF THE STATE, AGAINST SUCH DISTRIBUTOR FOR THE AMOUNT OF SUCH TAX,  WITH
INTEREST.  THE  PROCEEDS  OF  THE JUDGMENT, IF ANY, SHALL BE PAID TO THE
DEPARTMENT.
  WHENEVER ANY DISTRIBUTOR SHALL FAIL TO PAY, WITHIN  THE  TIME  LIMITED
HEREIN,  ANY TAX WHICH HE OR SHE IS REQUIRED TO PAY UNDER THE PROVISIONS
OF THIS ARTICLE, THE COMMISSIONER MAY ISSUE A WARRANT UNDER HIS  OR  HER
OFFICIAL  SEAL,  DIRECTED  TO  THE  SHERIFF  OF ANY COUNTY OF THE STATE,
COMMANDING HIM OR HER TO LEVY UPON AND SELL THE REAL AND PERSONAL  PROP-
ERTY  OF  SUCH  DISTRIBUTOR,  FOUND  WITHIN  HIS  OR HER COUNTY, FOR THE
PAYMENT OF THE AMOUNT THEREOF, WITH THE ADDED  PENALTIES,  INTEREST  AND
THE  COST  OF  EXECUTING  THE WARRANT, AND TO RETURN SUCH WARRANT TO THE
DEPARTMENT AND TO PAY TO IT THE MONEY COLLECTED BY VIRTUE THEREOF WITHIN
SIXTY DAYS AFTER THE RECEIPT OF SUCH WARRANT. THE SHERIFF SHALL,  WITHIN
FIVE  DAYS  AFTER THE RECEIPT OF THE WARRANT, FILE WITH THE CLERK OF HIS
OR HER COUNTY A COPY THEREOF, AND THEREUPON THE CLERK SHALL ENTER IN THE
JUDGMENT DOCKET THE NAME OF THE DISTRIBUTOR MENTIONED  IN  THE  WARRANT,
AND  THE AMOUNT OF THE TAX, PENALTIES AND INTEREST FOR WHICH THE WARRANT
IS ISSUED AND THE DATE WHEN SUCH COPY IS FILED, AND THEREUPON THE AMOUNT
OF SUCH WARRANT SO DOCKETED SHALL BECOME A LIEN UPON THE TITLE  TO,  AND
INTEREST  IN, REAL AND PERSONAL PROPERTY OF THE DISTRIBUTOR AGAINST WHOM
THE WARRANT IS ISSUED. SUCH LIEN SHALL NOT APPLY  TO  PERSONAL  PROPERTY
UNLESS  SUCH WARRANT IS ALSO FILED IN THE DEPARTMENT OF STATE.  THE SAID
SHERIFF SHALL THEREUPON PROCEED UPON THE WARRANT IN ALL  RESPECTS,  WITH
LIKE  EFFECT,  AND  IN  THE  SAME MANNER PRESCRIBED BY LAW IN RESPECT TO
EXECUTIONS ISSUED AGAINST PROPERTY UPON JUDGMENTS OF A COURT OF  RECORD,
AND  SHALL  BE  ENTITLED  TO  THE  SAME  FEES FOR HIS OR HER SERVICES IN
EXECUTING THE WARRANT, TO BE  COLLECTED  IN  THE  SAME  MANNER.  IN  THE
DISCRETION OF THE COMMISSIONER A WARRANT OF LIKE TERMS, FORCE AND EFFECT
MAY BE ISSUED AND DIRECTED TO ANY OFFICER OR EMPLOYEE OF THE DEPARTMENT,
AND IN THE EXECUTION THEREOF SUCH OFFICER OR EMPLOYEE SHALL HAVE ALL THE
POWERS  CONFERRED  BY LAW UPON SHERIFFS, BUT SHALL BE ENTITLED TO NO FEE
OR COMPENSATION IN EXCESS OF ACTUAL EXPENSES PAID IN THE PERFORMANCE  OF
SUCH  DUTY.  UPON  SUCH  FILING OF A COPY OF A WARRANT, THE COMMISSIONER
SHALL HAVE THE SAME REMEDIES TO ENFORCE THE CLAIM FOR  TAXES,  PENALTIES
AND  INTEREST  AGAINST THE DISTRIBUTOR AS IF THE PEOPLE OF THE STATE HAD
RECOVERED JUDGMENT AGAINST SUCH DISTRIBUTOR FOR THE AMOUNT OF THE TAX.
  S 361. PENALTIES AND INTEREST. 1. (A)(I) A DISTRIBUTOR OR OTHER PERSON
WHO OR WHICH FAILS TO FILE A RETURN OR TO PAY ANY TAX  WITHIN  THE  TIME
REQUIRED  BY  THIS  ARTICLE  (DETERMINED WITH REGARD TO ANY EXTENSION OF
TIME FOR FILING OR PAYING) SHALL BE SUBJECT TO  A  PENALTY  OF  TEN  PER
CENTUM  OF  THE  AMOUNT  OF TAX DETERMINED TO BE DUE AS PROVIDED IN THIS
ARTICLE PLUS ONE PER CENTUM OF SUCH AMOUNT FOR EACH  MONTH  OR  FRACTION
THEREOF  DURING  WHICH THE FAILURE CONTINUES AFTER THE EXPIRATION OF THE
FIRST MONTH DURING WHICH THAT RETURN WAS REQUIRED TO BE  FILED  OR  SUCH
TAX BECAME DUE, NOT EXCEEDING THIRTY PER CENTUM IN THE AGGREGATE.
  (II)  IN  THE  CASE OF A FAILURE TO FILE A RETURN WITHIN SIXTY DAYS OF
THE DATE PRESCRIBED FOR FILING A RETURN BY THIS ARTICLE (DETERMINED WITH
REGARD TO ANY EXTENSION OF TIME FOR FILING), THE PENALTY IMPOSED BY THIS
PARAGRAPH SHALL NOT BE LESS THAN THE LESSER OF ONE  HUNDRED  DOLLARS  OR
ONE HUNDRED PER CENTUM OF THE AMOUNT REQUIRED TO BE SHOWN AS TAX ON THAT
RETURN.  FOR  THE  PURPOSE  OF THE PRECEDING SENTENCE, THE AMOUNT OF TAX
REQUIRED TO BE SHOWN ON THE RETURN SHALL BE REDUCED BY THE AMOUNT OF ANY
PART OF THE TAX THAT IS PAID  ON  OR  BEFORE  THE  DATE  PRESCRIBED  FOR
PAYMENT OF THE TAX.

S. 6610--A                         25                         A. 9710--A

  (B)  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
UNDERPAYMENT  RATE SET BY THE COMMISSIONER PURSUANT TO SUBDIVISION TWEN-
TY-SIXTH OF SECTION ONE HUNDRED SEVENTY-ONE OF  THIS  CHAPTER  SHALL  BE
PAID FOR THE PERIOD FROM THAT LAST DATE TO THE DATE PAID, WHETHER OR NOT
ANY  EXTENSION  OF  TIME  FOR PAYMENT WAS GRANTED.   INTEREST UNDER THIS
PARAGRAPH SHALL NOT BE OWED IF THE  AMOUNT  THEREOF  IS  LESS  THAN  ONE
DOLLAR.
  (C)  IF  THE  COMMISSIONER  DETERMINES  THAT  SUCH  FAILURE WAS DUE TO
REASONABLE CAUSE (AS DETERMINED UNDER REGULATIONS OF  THE  COMMISSIONER)
AND  NOT  DUE  TO  WILLFUL NEGLECT, HE OR SHE SHALL ABATE ALL OR PART OF
SUCH PENALTY.
  (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 TWO TIMES THE AMOUNT OF
TAX  DUE, PLUS (II) INTEREST ON SUCH UNPAID TAX AT THE UNDERPAYMENT RATE
SET BY THE COMMISSIONER 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  (DETER-
MINED  WITHOUT REGARD TO ANY EXTENSION OF TIME FOR PAYING) AND ENDING ON
THE DAY ON WHICH SUCH TAX IS PAID.
  (E) THE PENALTIES AND INTEREST PROVIDED FOR IN THIS SECTION  SHALL  BE
DETERMINED, ASSESSED, COLLECTED AND PAID IN THE SAME MANNER AS THE TAXES
IMPOSED BY THIS ARTICLE AND SHALL BE DISPOSED OF AS HEREINAFTER PROVIDED
WITH RESPECT TO MONIES DERIVED FROM THE TAX. UNPAID PENALTIES AND INTER-
EST  UNDER  THIS SUBDIVISION MAY BE RECOVERED BY THE ATTORNEY GENERAL IN
AN ACTION BROUGHT PURSUANT TO SECTION THREE HUNDRED SIXTY OF THIS  ARTI-
CLE. INTEREST UNDER THIS SUBDIVISION SHALL BE COMPOUNDED DAILY.
  2. FOR PURPOSES OF THIS CHAPTER, THE FAILURE TO DO ANY ACT REQUIRED BY
THIS  ARTICLE  SHALL BE DEEMED AN ACT COMMITTED IN PART AT THE OFFICE OF
THE COMMISSIONER IN ALBANY. FOR PURPOSES OF THIS  CHAPTER,  THE  CERTIF-
ICATE  OF  THE  COMMISSIONER TO THE EFFECT THAT A TAX HAS NOT BEEN PAID,
THAT A RETURN HAS NOT BEEN FILED,  OR  THAT  INFORMATION  HAS  NOT  BEEN
SUPPLIED,  AS  REQUIRED  BY  OR UNDER THE PROVISIONS OF THIS ARTICLE, OR
THAT A CLAIM FOR REFUND HAS BEEN FILED, SHALL BE  PRIMA  FACIE  EVIDENCE
THAT  THE  TAX  HAS  NOT  BEEN  PAID, THE RETURN HAS NOT BEEN FILED, THE
INFORMATION HAS NOT BEEN SUPPLIED, OR THE CLAIM HAS NOT BEEN FILED.
  3. FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN OF THIS CHAPTER.
  S 362. REFUNDS. 1. IN THE MANNER PROVIDED IN THIS SECTION, THE COMMIS-
SIONER SHALL REFUND OR CREDIT ANY TAX, PENALTY, OR INTEREST ERRONEOUSLY,
ILLEGALLY OR UNCONSTITUTIONALLY COLLECTED OR PAID IF AN  APPLICATION  IS
FILED  WITH  THE COMMISSIONER WITHIN THREE YEARS AFTER THE DATE WHEN THE
TAX, PENALTY, OR INTEREST WAS PAID UNDER THIS ARTICLE.  THE  APPLICATION
SHALL BE IN A FORM PRESCRIBED BY THE COMMISSIONER.
  2.  WITH  RESPECT  TO SYRUPS OR SIMPLE SYRUPS, BOTTLED SOFT DRINKS, OR
POWDERS OR BASE PRODUCTS IMPORTED, MANUFACTURED OR SOLD OR PURCHASED  IN
THIS STATE, A DISTRIBUTOR SHALL BE ALLOWED A REFUND OR CREDIT OF THE TAX
REQUIRED  TO BE PAID PURSUANT TO THIS ARTICLE UPON SUCH SYRUPS OR SIMPLE
SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS OR BASE PRODUCTS IN  THE  AMOUNT
OF  SUCH  TAX PAID IF SUCH SYRUPS OR SIMPLE SYRUPS, BOTTLED SOFT DRINKS,
OR POWDERS OR BASE PRODUCTS WERE EXPORTED FROM THIS STATE  FOR  SALE  OR
USE  OUTSIDE  THIS  STATE.  THE DISTRIBUTOR MUST FILE AN APPLICATION FOR
SUCH REFUND OR CREDIT AND COMPLY WITH ALL  REQUIREMENTS  AND  RULES  AND
REGULATIONS  OF  THE  COMMISSIONER,  INCLUDING  ANY  AND ALL EVIDENTIARY
REQUIREMENTS. UPON RECEIPT OF A CLAIM FOR REFUND  IN  PROCESSIBLE  FORM,

S. 6610--A                         26                         A. 9710--A

INTEREST  SHALL  BE  ALLOWED AND PAID AT THE OVERPAYMENT RATE SET BY THE
COMMISSIONER PURSUANT TO SUBDIVISION TWENTY-SIXTH OF SECTION ONE HUNDRED
SEVENTY-ONE OF THIS CHAPTER FROM THE DUE DATE OF THE REFUND CLAIM TO THE
DATE  IMMEDIATELY  PRECEDING THE DATE OF THE REFUND CHECK EXCEPT NO SUCH
INTEREST SHALL BE ALLOWED OR PAID IF THE REFUND CHECK IS  MAILED  WITHIN
THIRTY  DAYS  OF SUCH RECEIPT AND EXCEPT NO INTEREST SHALL BE ALLOWED OR
PAID IF THE AMOUNT THEREOF WOULD BE LESS THAN ONE DOLLAR.  FOR  PURPOSES
OF  THIS  SUBDIVISION, A CLAIM SHALL NOT BE TREATED AS FILED UNTIL IT IS
FILED IN PROCESSIBLE FORM. A CLAIM IS IN A PROCESSIBLE FORM IF THE CLAIM
IS FILED ON A PERMITTED FORM, AND CONTAINS THE TAXPAYER'S NAME,  ADDRESS
AND  IDENTIFYING  NUMBER  AND  THE  REQUIRED  SIGNATURES, AND SUFFICIENT
REQUIRED INFORMATION (WHETHER ON THE CLAIM OR ON  REQUIRED  ATTACHMENTS)
TO PERMIT THE MATHEMATICAL VERIFICATION OF REFUND SHOWN ON THE CLAIM.
  3.  IF  AN  APPLICATION FOR REFUND OR CREDIT IS FILED WITH THE COMMIS-
SIONER AS PROVIDED IN SUBDIVISION ONE OF THIS SECTION, THE  COMMISSIONER
SHALL  GRANT  OR  DENY  THAT  APPLICATION IN WHOLE OR IN PART WITHIN SIX
MONTHS OF RECEIPT OF THE APPLICATION IN A FORM THAT IS ABLE TO BE  PROC-
ESSED  AND SHALL NOTIFY THE APPLICANT BY MAIL ACCORDINGLY. THAT DETERMI-
NATION SHALL BE FINAL AND IRREVOCABLE UNLESS THE APPLICANT, WITHIN NINE-
TY DAYS AFTER THE MAILING OF NOTICE OF SUCH DETERMINATION, PETITIONS THE
DIVISION OF TAX APPEALS FOR A HEARING.  AFTER THE HEARING, THE  DIVISION
OF TAX APPEALS SHALL MAIL NOTICE OF THE DETERMINATION OF THE ADMINISTRA-
TIVE  LAW JUDGE TO THE APPLICANT AND TO THE COMMISSIONER.  THAT DETERMI-
NATION MAY BE REVIEWED BY THE TAX APPEALS TRIBUNAL AS PROVIDED IN  ARTI-
CLE  FORTY OF THIS CHAPTER. THE DECISION OF THE TAX APPEALS TRIBUNAL MAY
BE REVIEWED AS PROVIDED IN SECTION TWO THOUSAND SIXTEEN OF THIS CHAPTER.
  4. A SUBSEQUENT PURCHASER SHALL BE ELIGIBLE FOR REIMBURSEMENT  OF  TAX
IMPOSED  UNDER THIS SECTION WITH RESPECT TO ANY SYRUPS OR SIMPLE SYRUPS,
BOTTLED SOFT DRINKS, OR POWDERS  OR  BASE  PRODUCTS  PURCHASED  BY  SUCH
SUBSEQUENT  PURCHASER  TO WHICH AN EXEMPTION UNDER SUBDIVISIONS ONE, TWO
OR THREE OF SECTION THREE HUNDRED FIFTY-TWO OF THIS ARTICLE  WOULD  HAVE
APPLIED.  THIS  REIMBURSEMENT  MAY  BE  CLAIMED  ONLY  WHERE (A) THE TAX
IMPOSED PURSUANT TO THIS ARTICLE HAS BEEN PAID WITH RESPECT TO SYRUPS OR
SIMPLE SYRUPS, BOTTLED SOFT DRINKS, OR POWDERS OR BASE PRODUCTS, AND THE
ENTIRE AMOUNT OF SUCH TAX HAS BEEN ABSORBED BY SUCH PURCHASER,  AND  (B)
SUCH  PURCHASER  POSSESSES DOCUMENTARY PROOF SATISFACTORY TO THE COMMIS-
SIONER EVIDENCING THE ABSORPTION BY IT OF THE ENTIRE AMOUNT OF  THE  TAX
IMPOSED  PURSUANT  TO  THIS ARTICLE. PROVIDED, HOWEVER, THAT THE COMMIS-
SIONER  SHALL  REQUIRE  SUCH  DOCUMENTARY  PROOF  TO  QUALIFY  FOR   ANY
REIMBURSEMENT  OF TAX PROVIDED BY THIS SECTION AS THE COMMISSIONER DEEMS
APPROPRIATE.
  S 363. MAILING RULES; HOLIDAYS. 1. IF ANY  RETURN,  CLAIM,  STATEMENT,
NOTICE,  APPLICATION,  OR  OTHER  DOCUMENT  REQUIRED TO BE FILED, OR ANY
PAYMENT REQUIRED TO BE MADE, WITHIN A PRESCRIBED PERIOD OR ON OR  BEFORE
A  PRESCRIBED  DATE UNDER AUTHORITY OF ANY PROVISION OF THIS ARTICLE IS,
AFTER SUCH PERIOD OR SUCH DATE, DELIVERED BY UNITED STATES MAIL  TO  THE
COMMISSIONER,  DEPARTMENT,  BUREAU, OFFICE, OFFICER OR PERSON WITH WHICH
OR WITH WHOM SUCH DOCUMENT IS REQUIRED TO BE FILED, OR TO  WHICH  OR  TO
WHOM  SUCH PAYMENT IS REQUIRED TO BE MADE, THE DATE OF THE UNITED STATES
POSTMARK STAMPED ON THE ENVELOPE SHALL BE  DEEMED  TO  BE  THE  DATE  OF
DELIVERY.  THIS  SUBDIVISION SHALL APPLY ONLY IF THE POSTMARK DATE FALLS
WITHIN THE PRESCRIBED PERIOD OR ON OR BEFORE THE PRESCRIBED DATE FOR THE
FILING OF SUCH DOCUMENT, OR FOR MAKING THE PAYMENT, INCLUDING ANY EXTEN-
SION GRANTED FOR SUCH FILING OR PAYMENT, AND ONLY IF  SUCH  DOCUMENT  OR
PAYMENT  WAS  DEPOSITED IN THE MAIL, POSTAGE PREPAID, PROPERLY ADDRESSED
TO THE COMMISSIONER, DEPARTMENT, BUREAU, OFFICE, OFFICER OR PERSON  WITH

S. 6610--A                         27                         A. 9710--A

WHICH  OR  WITH WHOM THE DOCUMENT IS REQUIRED TO BE FILED OR TO WHICH OR
TO WHOM SUCH PAYMENT IS REQUIRED TO BE MADE.  IF ANY DOCUMENT IS SENT BY
UNITED STATES REGISTERED MAIL, SUCH REGISTRATION SHALL  BE  PRIMA  FACIE
EVIDENCE  THAT  SUCH DOCUMENT WAS DELIVERED TO THE COMMISSIONER, DEPART-
MENT, BUREAU, OFFICE, OFFICER OR PERSON TO WHICH OR TO  WHOM  ADDRESSED.
TO  THE  EXTENT  THAT  THE  COMMISSIONER  SHALL PRESCRIBE BY REGULATION,
CERTIFIED MAIL MAY BE  USED  IN  LIEU  OF  REGISTERED  MAIL  UNDER  THIS
SECTION.  THIS SUBDIVISION SHALL APPLY IN THE CASE OF POSTMARKS NOT MADE
BY THE UNITED STATES POST OFFICE ONLY IF AND TO THE EXTENT  PROVIDED  BY
REGULATIONS OF THE COMMISSIONER.
  2.  ANY  NOTICE AUTHORIZED OR REQUIRED UNDER THIS ARTICLE MAY BE GIVEN
BY MAILING IT TO THE PERSON FOR WHOM  IT  IS  INTENDED,  IN  A  POSTPAID
ENVELOPE  ADDRESSED TO SUCH PERSON AT THE ADDRESS GIVEN BY HIM OR HER IN
HIS OR HER APPLICATION FOR REGISTRATION AS A DISTRIBUTOR OR IN THE  LAST
RETURN  FILED  BY HIM OR HER UNDER THIS ARTICLE OR, IF NO APPLICATION OR
RETURN HAS BEEN FILED, THEN TO SUCH ADDRESS AS MAY  BE  OBTAINABLE.  THE
MAILING  OF  SUCH NOTICE SHALL BE PRESUMPTIVE EVIDENCE OF ITS RECEIPT BY
THE PERSON TO WHOM ADDRESSED.  ANY PERIOD OF TIME, WHICH  IS  DETERMINED
ACCORDING  TO  THE  PROVISIONS OF THIS ARTICLE, FOR THE GIVING OF NOTICE
SHALL COMMENCE TO RUN FROM THE DATE OF MAILING OF SUCH NOTICE.
  3. WHEN THE LAST  DAY  PRESCRIBED  UNDER  AUTHORITY  OF  THIS  ARTICLE
(INCLUDING ANY EXTENSION OF TIME) FOR PERFORMING ANY ACT FALLS ON SATUR-
DAY, SUNDAY OR A LEGAL HOLIDAY IN THE STATE OF NEW YORK, THE PERFORMANCE
OF  SUCH  ACT  SHALL BE CONSIDERED TIMELY IF IT IS PERFORMED ON THE NEXT
SUCCEEDING DAY WHICH IS NOT A SATURDAY, SUNDAY OR A LEGAL HOLIDAY.
  4. (A) ANY REFERENCE IN SUBDIVISION ONE OF THIS SECTION TO THE  UNITED
STATES  MAIL  SHALL  BE TREATED AS INCLUDING A REFERENCE TO ANY DELIVERY
SERVICE DESIGNATED BY THE SECRETARY OF THE TREASURY OF THE UNITED STATES
PURSUANT TO SECTION SEVENTY-FIVE HUNDRED TWO  OF  THE  INTERNAL  REVENUE
CODE  AND ANY REFERENCE IN SUBDIVISION ONE OF THIS SECTION TO A POSTMARK
BY THE UNITED STATES MAIL SHALL BE TREATED AS INCLUDING A  REFERENCE  TO
ANY  DATE RECORDED OR MARKED IN THE MANNER DESCRIBED IN SECTION SEVENTY-
FIVE HUNDRED TWO OF THE INTERNAL REVENUE CODE BY A  DESIGNATED  DELIVERY
SERVICE.  IF THE COMMISSIONER FINDS THAT ANY DELIVERY SERVICE DESIGNATED
BY SUCH SECRETARY IS INADEQUATE FOR THE NEEDS OF THE STATE, THE  COMMIS-
SIONER  MAY  WITHDRAW SUCH DESIGNATION FOR PURPOSES OF THIS ARTICLE. THE
COMMISSIONER MAY ALSO DESIGNATE ADDITIONAL DELIVERY SERVICES MEETING THE
CRITERIA OF SECTION SEVENTY-FIVE HUNDRED TWO  OF  THE  INTERNAL  REVENUE
CODE  FOR PURPOSES OF THIS ARTICLE, OR MAY WITHDRAW ANY SUCH DESIGNATION
IF THE COMMISSIONER FINDS THAT A DELIVERY SERVICE SO DESIGNATED IS INAD-
EQUATE FOR THE NEEDS OF THE STATE. ANY REFERENCE IN SUBDIVISION  ONE  OF
THIS  SECTION  TO THE UNITED STATES MAIL SHALL BE TREATED AS INCLUDING A
REFERENCE TO ANY DELIVERY SERVICE DESIGNATED BY THE COMMISSIONER AND ANY
REFERENCE IN SUBDIVISION ONE OF THIS SECTION TO A POSTMARK BY THE UNITED
STATES MAIL SHALL BE TREATED  AS  INCLUDING  A  REFERENCE  TO  ANY  DATE
RECORDED  OR  MARKED  IN  THE  MANNER  DESCRIBED IN SECTION SEVENTY-FIVE
HUNDRED TWO OF THE INTERNAL REVENUE CODE BY A  DELIVERY  SERVICE  DESIG-
NATED BY THE COMMISSIONER.
  (B)  ANY  EQUIVALENT OF REGISTERED OR CERTIFIED MAIL DESIGNATED BY THE
UNITED STATES SECRETARY OF THE TREASURY, OR AS MAY BE DESIGNATED BY  THE
COMMISSIONER  PURSUANT  TO  THE SAME CRITERIA USED BY SUCH SECRETARY FOR
SUCH DESIGNATIONS PURSUANT TO SECTION SEVENTY-FIVE HUNDRED  TWO  OF  THE
INTERNAL  REVENUE  CODE,  SHALL BE INCLUDED WITHIN THE MEANING OF REGIS-
TERED OR CERTIFIED MAIL AS USED IN SUBDIVISION ONE OF THIS  SECTION.  IF
THE  COMMISSIONER  FINDS  THAT ANY EQUIVALENT OF REGISTERED OR CERTIFIED

S. 6610--A                         28                         A. 9710--A

MAIL IS INADEQUATE FOR THE NEEDS OF  THE  STATE,  THE  COMMISSIONER  MAY
WITHDRAW SUCH DESIGNATION FOR PURPOSES OF THIS ARTICLE.
  S  364.  DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES, FEES, INTEREST
AND PENALTIES COLLECTED OR RECEIVED BY THE COMMISSIONER UNDER THE  TAXES
IMPOSED  BY  THIS ARTICLE SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO
THE PROVISIONS OF SECTION ONE HUNDRED  SEVENTY-ONE-A  OF  THIS  CHAPTER.
FROM  THE  TAXES AND INTEREST AND PENALTIES COLLECTED OR RECEIVED BY THE
COMMISSIONER UNDER SECTION  THREE  HUNDRED  FIFTY-ONE  OF  THIS  ARTICLE
EFFECTIVE  ON  AND  AFTER  SEPTEMBER FIRST, TWO THOUSAND TEN, ALL MONIES
COLLECTED OR RECEIVED UNDER SUCH SECTIONS SHALL BE DEPOSITED TO THE HCRA
RESOURCES FUND AS ESTABLISHED PURSUANT TO SECTION NINETY-TWO-DD  OF  THE
STATE FINANCE LAW.
  S  4. The tax law is amended by adding a new section 1812-g to read as
follows:
  S 1812-G. ARTICLE SIXTEEN TAX. 1. ANY PERSON WHO WILLFULLY ATTEMPTS IN
ANY MANNER TO EVADE OR DEFEAT ANY TAX IMPOSED BY ARTICLE SIXTEEN 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.
  2. ANY WILLFUL ACT OR OMISSION, OTHER THAN THOSE DESCRIBED IN  SECTION
EIGHTEEN HUNDRED ONE OF THIS ARTICLE OR SUBDIVISION ONE OF THIS SECTION,
BY  ANY  PERSON  THAT AMOUNTS TO A VIOLATION OF ANY PROVISION OF ARTICLE
SIXTEEN OF THIS CHAPTER, CONSTITUTES A MISDEMEANOR.
  S 5. This act shall take effect September 1, 2010.

                                 PART D

  Section 1. Subdivision (a) of section 28 of the tax law, as  added  by
section  1  of  part  X of chapter 62 of the laws of 2006, is amended to
read as follows:
  (a) General. A taxpayer subject to tax under article nine,  nine-A  or
twenty-two  of  this  chapter shall be allowed a credit against such tax
pursuant to  the  provisions  referenced  in  subdivision  (d)  of  this
section. The credit (or pro rata share of earned credit in the case of a
partnership)  for  each gallon of biofuel produced at a biofuel plant on
or after January first, two thousand six shall equal fifteen  cents  per
gallon after the production of the first forty thousand gallons per year
presented  to  market.  The credit under this section shall be capped at
two and one-half million dollars per taxpayer per taxable year for up to
no more than four consecutive taxable years per biofuel plant.   IF  THE
TAXPAYER  IS  A  PARTNER IN A PARTNERSHIP OR SHAREHOLDER OF A NEW YORK S
CORPORATION, THEN THE CAP IMPOSED BY THE  PRECEDING  SENTENCE  SHALL  BE
APPLIED AT THE ENTITY LEVEL, SO THAT THE AGGREGATE CREDIT ALLOWED TO ALL
THE  PARTNERS  OR  SHAREHOLDERS  OF EACH SUCH ENTITY IN THE TAXABLE YEAR
DOES NOT EXCEED TWO AND ONE-HALF MILLION DOLLARS.
  S 2. Paragraph (f) of subdivision 12-G of section 210 of the tax  law,
as  amended  by section 1-a of part A of chapter 63 of the laws of 2005,
is amended to read as follows:
  (f) An eligible taxpayer may claim credits under this subdivision  for
four  consecutive  taxable years, except, if a taxpayer is located in an
academic incubator facility and relocates within New  York  state  to  a
nonacademic  incubator  site, then the taxpayer (i) may make a revocable
election to defer the credit provided  under  this  subdivision  to  the
first  taxable  year  beginning  after  the  taxpayer  relocates from an
academic incubator facility, and (ii) shall be eligible for such  credit

S. 6610--A                         29                         A. 9710--A

for  five consecutive taxable years. In no case shall the credit allowed
by this subdivision to a taxpayer exceed two hundred and fifty  thousand
dollars  per  year.    IF  THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR
SHAREHOLDER  OF  A NEW YORK S CORPORATION, THEN THE LIMIT IMPOSED BY THE
PRECEDING SENTENCE SHALL BE APPLIED AT THE ENTITY  LEVEL,  SO  THAT  THE
AGGREGATE  CREDIT  ALLOWED  TO  ALL THE PARTNERS OR SHAREHOLDERS OF EACH
SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED TWO  HUNDRED  AND  FIFTY
THOUSAND DOLLARS.
  S  3. Paragraph 6 of subsection (nn) of section 606 of the tax law, as
amended by section 1-a of part A of chapter 63 of the laws of  2005,  is
amended to read as follows:
  (6)  An  eligible taxpayer may claim credits under this subsection for
four consecutive taxable years, except, if a taxpayer is located  in  an
academic  incubator  facility  and  relocates within New York state to a
nonacademic incubator site, then the taxpayer (i) may make  a  revocable
election to defer the credit provided under this subsection to the first
taxable  year  beginning  after  the taxpayer relocates from an academic
incubator facility, and (ii) shall be eligible for such credit for  five
consecutive  years.  In  no  case  shall  the  credit  allowed  by  this
subsection to a taxpayer exceed two hundred fifty thousand  dollars  per
year.  IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR SHAREHOLDER OF A
NEW YORK S CORPORATION, THEN THE LIMIT IMPOSED BY THE PRECEDING SENTENCE
SHALL  BE  APPLIED  AT  THE  ENTITY  LEVEL, SO THAT THE AGGREGATE CREDIT
ALLOWED TO ALL THE PARTNERS OR SHAREHOLDERS OF EACH SUCH ENTITY  IN  THE
TAXABLE YEAR DOES NOT EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS.
  S 4. This act shall take effect immediately and apply to taxable years
beginning on or after January 1, 2010.

                                 PART E

  Section  1.  Subparagraph  (E)  of  paragraph  1  of subsection (b) of
section 631 of the tax law, as added by section 1 of part H  of  chapter
60  of  the laws of 2004, is amended and a new subparagraph (F) is added
to read as follows:
  (E) gains from the sale, conveyance or other disposition of shares  of
stock  in a cooperative housing corporation in connection with the grant
or transfer of a proprietary leasehold by the owner thereof and  subject
to  the  provisions  of article thirty-one of this chapter, whether such
shares are held by a partnership, trust or otherwise[.]; OR
  (F) INCOME RECEIVED BY NONRESIDENTS  RELATED  TO  A  BUSINESS,  TRADE,
PROFESSION OR OCCUPATION PREVIOUSLY CARRIED ON IN THIS STATE, WHETHER OR
NOT  AS  AN  EMPLOYEE,  INCLUDING  BUT  NOT LIMITED TO, COVENANTS NOT TO
COMPETE AND TERMINATION  AGREEMENTS.  INCOME  RECEIVED  BY  NONRESIDENTS
RELATED  TO  A  BUSINESS,  TRADE,  PROFESSION  OR  OCCUPATION PREVIOUSLY
CARRIED ON PARTLY WITHIN AND PARTLY WITHOUT THE STATE SHALL BE ALLOCATED
IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTION (C) OF THIS SECTION.
  S 2. This act shall take effect immediately and apply to taxable years
on or after January 1, 2010.

                                 PART F

  Section 1. Legislative findings. The  legislature  finds  that  it  is
necessary to correct a decision of the tax appeals tribunal and a deter-
mination  of the division of tax appeals that erroneously overturned the
longstanding policies of department of taxation and finance that nonres-
ident subchapter S shareholders who sell their interest in an  S  corpo-

S. 6610--A                         30                         A. 9710--A

ration  pursuant  to  an  election  under  section 338(h)(10) or section
453(h)(1)(A) of the Internal Revenue Code, respectively,  are  taxed  in
accordance with that election and the transaction is treated as an asset
sale  producing  New  York  source  income.  Section  two of this act is
intended to clarify the concept of federal conformity  in  the  personal
income  tax  and is necessary to prevent confusion in the preparation of
returns, unintended refunds, and protracted litigation  of  issues  that
have been properly administered up to now.
  S  2.  Paragraph 2 of subsection (a) of section 632 of the tax law, as
amended by section 65 of part A of chapter 389 of the laws of  1997,  is
amended to read as follows:
  (2) In determining New York source income of a nonresident shareholder
of an S corporation where the election provided for in subsection (a) of
section  six  hundred sixty of this article is in effect, there shall be
included only the portion derived from or connected with New York sourc-
es of such shareholder's pro  rata  share  of  items  of  S  corporation
income,  loss  and  deduction  entering  into his federal adjusted gross
income, increased by reductions for taxes described  in  paragraphs  two
and three of subsection (f) of section thirteen hundred sixty-six of the
internal  revenue  code, as such portion shall be determined under regu-
lations of the commissioner consistent with the applicable  methods  and
rules for allocation under article nine-A or thirty-two of this chapter,
REGARDLESS  OF  WHETHER  OR  NOT  SUCH  ITEM OR REDUCTION IS INCLUDED IN
ENTIRE NET INCOME UNDER ARTICLE NINE-A OR THIRTY-TWO FOR THE  TAX  YEAR.
IF A NONRESIDENT IS A SHAREHOLDER IN AN S CORPORATION WHERE THE ELECTION
PROVIDED  FOR  IN  SUBSECTION  (A)  OF SECTION SIX HUNDRED SIXTY OF THIS
ARTICLE IS IN EFFECT, AND THE S CORPORATION HAS DISTRIBUTED AN  INSTALL-
MENT OBLIGATION UNDER SECTION 453(H)(1)(A) OF THE INTERNAL REVENUE CODE,
THEN ANY GAIN RECOGNIZED ON THE RECEIPT OF PAYMENTS FROM THE INSTALLMENT
OBLIGATION  FOR  FEDERAL INCOME TAX PURPOSES WILL BE TREATED AS NEW YORK
SOURCE INCOME ALLOCATED IN A MANNER CONSISTENT WITH THE APPLICABLE METH-
ODS AND RULES FOR ALLOCATION UNDER ARTICLE NINE-A OR THIRTY-TWO OF  THIS
CHAPTER  IN  THE  YEAR  THAT  THE  ASSETS WERE SOLD. IN ADDITION, IF THE
SHAREHOLDERS OF THE S CORPORATION HAVE MADE AN  ELECTION  UNDER  SECTION
338(H)(10) OF THE INTERNAL REVENUE CODE, THEN ANY GAIN RECOGNIZED ON THE
DEEMED ASSET SALE FOR FEDERAL INCOME TAX PURPOSES WILL BE TREATED AS NEW
YORK  SOURCE INCOME ALLOCATED IN A MANNER CONSISTENT WITH THE APPLICABLE
METHODS AND RULES FOR ALLOCATION UNDER ARTICLE NINE-A OR  THIRTY-TWO  OF
THIS  CHAPTER  IN  THE  YEAR  THAT  THE  SHAREHOLDER  MADE  THE  SECTION
338(H)(10) ELECTION. FOR PURPOSES OF A SECTION 338(H)(10) ELECTION, WHEN
A NONRESIDENT SHAREHOLDER EXCHANGES HIS OR HER S  CORPORATION  STOCK  AS
PART  OF  THE  DEEMED  LIQUIDATION, ANY GAIN OR LOSS RECOGNIZED SHALL BE
TREATED AS THE DISPOSITION OF AN INTANGIBLE ASSET AND WILL NOT  INCREASE
OR  OFFSET  ANY GAIN RECOGNIZED ON THE DEEMED ASSETS SALE AS A RESULT OF
THE SECTION 338(H)(10) ELECTION.
  S 3. Paragraph 1 of subsection (b) of section 631 of the  tax  law  is
amended by adding a new subparagraph (E-1) to read as follows:
  (E-1)  IN  THE  CASE  OF  AN S CORPORATION FOR WHICH AN ELECTION IS IN
EFFECT PURSUANT TO SUBSECTION (A) OF SECTION SIX HUNDRED SIXTY  OF  THIS
ARTICLE  THAT  TERMINATES  ITS TAXABLE STATUS IN NEW YORK, ANY INCOME OR
GAIN RECOGNIZED ON THE RECEIPT OF  PAYMENTS  FROM  AN  INSTALLMENT  SALE
CONTRACT  ENTERED  INTO WHEN THE S CORPORATION WAS SUBJECT TO TAX IN NEW
YORK, ALLOCATED IN A MANNER CONSISTENT WITH THE APPLICABLE  METHODS  AND
RULES FOR ALLOCATION UNDER ARTICLE NINE-A OR THIRTY-TWO OF THIS CHAPTER,
IN THE YEAR THAT THE S CORPORATION SOLD ITS ASSETS.

S. 6610--A                         31                         A. 9710--A

  S  4.  This  act shall take effect immediately; provided however, that
section two of this act shall apply to all tax years for which the stat-
ute of limitations for seeking a refund or assessing additional tax  are
still  open,  and section three of this act shall apply to taxable years
beginning on or after January 1, 2010.

                                 PART G

  Section  1.  Subparagraph  (D)  of  paragraph  3  of subsection (b) of
section 605 of the tax law is REPEALED.
  S 2. Section 618 of the tax law, as added by chapter 563 of  the  laws
of 1960, subsection 4 as amended by section 9 of part C of chapter 25 of
the laws of 2009 and subsection 5 as added by chapter 384 of the laws of
1988, is amended to read as follows:
  S  618. New York taxable income of a resident estate or trust.  (A)(1)
The New York taxable income of a resident estate or trust, OTHER THAN  A
RESIDENT  NONTESTAMENTARY TRUST WITH ONE OR MORE NONRESIDENT ASCERTAINA-
BLE BENEFICIARIES BUT NO INCOME DERIVED FROM OR CONNECTED WITH NEW  YORK
SOURCES,  means its federal taxable income as defined in the laws of the
United States for the taxable year, with the following modifications:
  (2) There shall be subtracted the  modifications  described  in  para-
graphs  [(4)]  FOUR  and  [(5)]  FIVE  of  subsection (c) of section six
hundred twelve OF THIS PART, with respect to  gains  from  the  sale  or
other  disposition  of  property,  to the extent such gains are excluded
from federal distributable net income of the estate or trust.
  (3) There shall be added or subtracted (as the case may be) the  share
of  the  estate or trust in the New York fiduciary adjustment determined
under section six hundred nineteen OF THIS PART.
  (4) There shall be added or  subtracted  (as  the  case  may  be)  the
modifications  described  in  paragraphs  [(6),  (10), (17), (18), (19),
(20), (21), (22), (23), (24), (25), (26), (27),  (29),  (38)  and  (39)]
SIX, TEN, SEVENTEEN, EIGHTEEN, NINETEEN, TWENTY, TWENTY-ONE, TWENTY-TWO,
TWENTY-THREE,  TWENTY-FOUR, TWENTY-FIVE, TWENTY-SIX, TWENTY-SEVEN, TWEN-
TY-NINE, THIRTY-EIGHT AND THIRTY-NINE of subsection  (b)  and  in  para-
graphs [(11), (13), (15), (19), (20), (21), (22), (23), (24), (25), (26)
and (28)] ELEVEN, THIRTEEN, FIFTEEN, NINETEEN, TWENTY, TWENTY-ONE, TWEN-
TY-TWO,   TWENTY-THREE,   TWENTY-FOUR,   TWENTY-FIVE,   TWENTY-SIX   AND
TWENTY-EIGHT of subsection (c) of section six  hundred  twelve  of  this
part.
  (5)  In  the  case  of a trust, there shall be added the amount of any
includible gain, reduced by any deductions properly  allocable  thereto,
upon  which  tax is imposed for the taxable year pursuant to section six
hundred forty-four of the internal revenue code.
  (B) (1) THE NEW YORK TAXABLE  INCOME  OF  A  RESIDENT  NONTESTAMENTARY
TRUST  WITH  ONE  OR MORE NONRESIDENT ASCERTAINABLE BENEFICIARIES BUT NO
INCOME DERIVED FROM OR CONNECTED WITH NEW  YORK  SOURCES  SHALL  BE  THE
PRODUCT OF THE NEW YORK TAXABLE INCOME BASE OF THE TRUST MULTIPLIED BY A
FRACTION, THE NUMERATOR OF WHICH IS THE NUMBER OF INDIVIDUAL ASCERTAINA-
BLE BENEFICIARIES OF THE TRUST WHO ARE RESIDENTS, AND THE DENOMINATOR OF
WHICH IS THE TOTAL NUMBER OF INDIVIDUAL ASCERTAINABLE BENEFICIARIES.
  (2)  FOR PURPOSES OF THIS SUBSECTION, THE NEW YORK TAXABLE INCOME BASE
MEANS THE TRUST'S FEDERAL TAXABLE INCOME AS DEFINED IN THE LAWS  OF  THE
UNITED STATES FOR THE TAXABLE YEAR, WITH THE MODIFICATIONS PRESCRIBED IN
PARAGRAPHS TWO, THREE, FOUR AND FIVE OF SUBSECTION (A) OF THIS SECTION.
  (3)  FOR PURPOSES OF THIS SECTION, "DERIVED FROM OR CONNECTED WITH NEW
YORK SOURCES" HAS THE SAME MEANING AS SUCH PHRASE IS USED IN SECTION SIX

S. 6610--A                         32                         A. 9710--A

HUNDRED THIRTY-THREE OF THIS ARTICLE IN RELATION  TO  THE  INCOME  OF  A
NONRESIDENT TRUST.
  (4)  FOR PURPOSES OF THIS SECTION, "ASCERTAINABLE BENEFICIARY" MEANS A
CURRENTLY LIVING ASCERTAINABLE BENEFICIARY WHO HAS A PRESENT  OR  FUTURE
INTEREST  IN  THE  TRUST, INCLUDING A BENEFICIARY WHOSE INTEREST HAS NOT
VESTED BECAUSE IT IS IN A CLASS SUBJECT TO OPEN, AS DEFINED  IN  SECTION
6-4.8  OF  THE  ESTATES,  POWERS AND TRUSTS LAW, AND A BENEFICIARY WHOSE
INTEREST HAS NOT YET VESTED BECAUSE IT IS SUBJECT TO A CONDITION  PRECE-
DENT,  AS  DEFINED  IN  SECTION 6-4.10 OF THE ESTATES, POWERS AND TRUSTS
LAW.
  (5) IF A BENEFICIARY OF A TRUST IS A PARTNERSHIP (OTHER THAN A PUBLIC-
LY TRADED PARTNERSHIP AS DEFINED IN SECTION 7704 OF THE FEDERAL INTERNAL
REVENUE CODE), SUBCHAPTER K LIMITED LIABILITY COMPANY, OR S  CORPORATION
FOR  WHICH AN ELECTION HAS BEEN MADE UNDER SUBSECTION (A) OF SECTION SIX
HUNDRED SIXTY OF THIS ARTICLE, THE TRUST SHALL, FOR PURPOSES  OF  DETER-
MINING  THE  NUMBER  OF ASCERTAINABLE BENEFICIARIES OF THE TRUST WHO ARE
RESIDENTS, COUNT EACH PARTNER, MEMBER,  OR  SHAREHOLDER  AS  A  SEPARATE
BENEFICIARY  AND DETERMINE EACH INDIVIDUAL PARTNER'S, MEMBER'S OR SHARE-
HOLDER'S RESIDENCE SEPARATELY.
  S 3. Subsection 4 of section 618 of the tax law, as separately amended
by section 5 of part HH-1 of chapter 57 of the laws of 2008 and  section
9 of part C of chapter 25 of the laws of 2009, as designated paragraph 4
of  subsection  (a)  by  section  two of this act, is amended to read as
follows:
  (4) There shall be added or  subtracted  (as  the  case  may  be)  the
modifications  described  in  paragraphs  [(6),  (10), (17), (18), (19),
(20), (21), (22), (23), (24), (25), (26), (27),  (28),  (29),  (38)  and
(39)] SIX, TEN, SEVENTEEN, EIGHTEEN, NINETEEN, TWENTY, TWENTY-ONE, TWEN-
TY-TWO,    TWENTY-THREE,    TWENTY-FOUR,    TWENTY-FIVE,   TWENTY-SEVEN,
TWENTY-NINE, THIRTY-EIGHT AND THIRTY-NINE of subsection (b) and in para-
graphs [(11), (13), (15), (19), (20), (21), (22), (23), (24), (25), (26)
and (28)] ELEVEN, THIRTEEN, FIFTEEN, NINETEEN, TWENTY, TWENTY-ONE, TWEN-
TY-TWO,   TWENTY-THREE,   TWENTY-FOUR,   TWENTY-FIVE,   TWENTY-SIX   AND
TWENTY-EIGHT  of  subsection  (c)  of section six hundred twelve of this
part.
  S 4. This act shall take effect immediately and apply to taxable years
beginning on or after January 1, 2010; provided that the  amendments  to
paragraph  4  of  subsection  (a)  of section 618 of the tax law made by
section two of this act shall be subject to the expiration and reversion
of such paragraph and shall be deemed to expire therewith when upon such
date the provisions of section three of this act shall take effect.

                                 PART H

  Section 1. The tax law is amended by adding a new section 1703 to read
as follows:
  S 1703. INFORMATION RETURNS RELATING TO PAYMENTS MADE IN SETTLEMENT OF
PAYMENT CARD AND THIRD PARTY NETWORK TRANSACTIONS. 1. (A) EVERY  PAYMENT
SETTLEMENT  ENTITY,  THIRD  PARTY  SETTLEMENT  ORGANIZATION,  ELECTRONIC
PAYMENT FACILITATOR OR OTHER THIRD PARTY ACTING ON BEHALF OF  A  PAYMENT
SETTLEMENT  ENTITY,  ALL  AS  DEFINED  IN  SECTION 6050W OF THE INTERNAL
REVENUE CODE AND REFERRED TO HEREIN AS "A REPORTING ENTITY," REQUIRED TO
FILE INFORMATION RETURNS PURSUANT TO THAT SECTION SHALL,  WITHIN  THIRTY
DAYS  OF  THE  FILING THEREOF, FILE WITH THE DEPARTMENT IN SUCH FORM AND
MANNER AS PRESCRIBED BY THE COMMISSIONER EITHER (I) A DUPLICATE  OF  ALL
SUCH INFORMATION RETURNS OR (II) A DUPLICATE OF SUCH INFORMATION RETURNS

S. 6610--A                         33                         A. 9710--A

RELATED  TO  PARTICIPATING  PAYEES,  AS  DEFINED IN SECTION 6050W OF THE
INTERNAL REVENUE CODE, WITH A NEW YORK STATE ADDRESS OR NEW  YORK  STATE
TAXPAYERS. THE COMMISSIONER MAY REQUIRE THAT SUCH RETURNS BE FILED ELEC-
TRONICALLY.
  (B)  TO FACILITATE ACCURATE REPORTING BY THE ENTITIES REQUIRED TO FILE
INFORMATION RETURNS PURSUANT  TO  THIS  SECTION,  THE  DEPARTMENT  SHALL
PROVIDE  A  LIST  OR  DATABASE OF NEW YORK STATE TAXPAYERS NO LATER THAN
FORTY-FIVE DAYS PRIOR TO THE INFORMATION  REPORTING  DEADLINE,  IN  SUCH
FORM  AND  MANNER  AS  PRESCRIBED  BY  THE COMMISSIONER. THE INFORMATION
INCLUDED IN SUCH LIST OR DATABASE SHALL NOT BE USED BY A REPORTING ENTI-
TY FOR ANY PURPOSE OTHER THAN PRODUCING AND FILING  INFORMATION  RETURNS
PURSUANT TO THIS SECTION.
  (C)  ANY  INFORMATION  RECEIVED  BY  THE  DEPARTMENT ON AN INFORMATION
RETURN FILED PURSUANT TO THIS SECTION, CONCERNING A PERSON  WHO  IS  NOT
SUBJECT TO TAX IN NEW YORK, OR IS NOT SUBJECT TO ANY REQUIREMENT IMPOSED
BY  OR PURSUANT TO THE AUTHORITY OF THIS CHAPTER, MAY NOT BE USED BY THE
DEPARTMENT. THE DEPARTMENT SHALL NOT REDISCLOSE ANY INFORMATION RECEIVED
ON AN INFORMATION RETURN FILED PURSUANT TO THIS SECTION.
  2. (A) ANY REPORTING ENTITY FAILING  TO  FILE  AN  INFORMATION  RETURN
REQUIRED  PURSUANT  TO  SUBDIVISION  ONE OF THIS SECTION WITHIN THE TIME
PRESCRIBED WILL BE SUBJECT TO A PENALTY OF FIFTY DOLLARS FOR EACH  FAIL-
URE, IF FAILURE IS FOR NOT MORE THAN ONE MONTH, WITH AN ADDITIONAL FIFTY
DOLLARS  FOR  EACH  MONTH  OR FRACTION THEREOF DURING WHICH EACH FAILURE
CONTINUES. HOWEVER, THE TOTAL AMOUNT OF PENALTY IMPOSED ON  A  REPORTING
ENTITY MAY NOT EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS ANNUALLY.
  (B)  THE  COMMISSIONER  MAY  WAIVE  ALL  OR ANY PORTION OF ANY PENALTY
IMPOSED BY THIS SUBDIVISION WITH RESPECT TO ANY  VIOLATION  IF  (I)  THE
COMMISSIONER  DETERMINES  THAT  THE FAILURE TO TIMELY FILE A RETURN, WAS
DUE TO REASONABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT, OR (II) RESCIND-
ING THE PENALTY WOULD PROMOTE COMPLIANCE WITH THE REQUIREMENTS  OF  THIS
CHAPTER AND EFFECTIVE TAX ADMINISTRATION.
  S 2. This act shall take effect immediately.

                                 PART I

  Section  1.  Paragraph 1 of subdivision (a) of section 1138 of the tax
law, as amended by chapter 267 of the laws of 1996, is amended  to  read
as follows:
  (1)  If a return required by this article is not filed, or if a return
when filed is incorrect or insufficient, the amount of tax due shall  be
determined  by  the commissioner from [such information as may be avail-
able] THE RECORDS OF THE PERSON LIABLE FOR THE TAX DUE IF THOSE  RECORDS
ARE  MADE  AVAILABLE  TO THE COMMISSIONER AND ARE ADEQUATE, INCLUDING BY
USING  GENERALLY  ACCEPTED  STATISTICAL  SAMPLING  TECHNIQUES  ON  THOSE
RECORDS  AS  AUTHORIZED  BY  SUBDIVISION SIX-A OF SECTION ELEVEN HUNDRED
FORTY-TWO OF THIS PART, UNLESS SUCH PERSON AND THE COMMISSIONER AGREE TO
SOME OTHER METHOD.    If  [necessary]  SUCH  PERSON'S  RECORDS  ARE  NOT
ADEQUATE  OR  ARE NOT MADE AVAILABLE TO THE COMMISSIONER, the tax may be
estimated on the basis of SUCH INFORMATION AS MAY BE AVAILABLE,  INCLUD-
ING  external  indices,  such  as stock on hand, purchases, rental paid,
number of rooms, location, scale of rents or charges,  comparable  rents
or  charges,  type of accommodations and service, number of employees or
other factors.    FOR  THE  PURPOSES  OF  THIS  PARAGRAPH,  RECORDS  ARE
"ADEQUATE"  ONLY  WHEN  THEY  ARE  COMPLETE AND RELIABLE. In the case of
retail food stores and other participants approved for participation  in
the  federal  food  stamp  program under or pursuant to the federal food

S. 6610--A                         34                         A. 9710--A

stamp act of nineteen hundred seventy-seven (7 U.S.C. S 2011  et  seq.),
as  amended,  whose records are incomplete, UNAVAILABLE or inadequate to
determine tax, the external indices upon which tax may be estimated  and
determined  may  also  include  information  contained  in applications,
updates of applications, redemption certificates,  returns  and  reports
which  such  retail food stores and other participants furnish to or are
furnished by the United States government or this state or  their  agen-
cies  in  order  for  such  retail food stores and other participants to
participate in the food stamp program or to redeem coupons issued  under
or  pursuant  to such food stamp act and any other available information
considered relevant.  Notice of such determination shall  be  mailed  to
the person or persons liable for the collection or payment of the tax. A
notice  of determination shall be mailed by certified or registered mail
to the person or persons liable for the collection or payment of the tax
at his last known address in or out of this state.  If  such  person  or
persons  is  deceased  or under a legal disability, a notice of determi-
nation may be mailed to his last known address in or out of this  state,
unless  the department has received notice of the existence of a fiduci-
ary relationship with respect to the taxpayer. After  ninety  days  from
the  mailing  of  a  notice  of  determination,  such notice shall be an
assessment of the amount of tax specified in such notice, together  with
the  interest,  additions  to  tax  and penalties stated in such notice,
except only for any such tax or other amounts as to which  the  taxpayer
has within such ninety day period applied to the division of tax appeals
for  a hearing, or unless the commissioner of his own motion shall rede-
termine the same. If the notice  of  determination  is  addressed  to  a
person  outside  of  the United States, such period shall be one hundred
fifty days instead of ninety days.
  S 2. Section 1142 of the tax law is amended by adding a  new  subdivi-
sion 6-a to read as follows:
  6-A.  (A) TO USE GENERALLY ACCEPTED STATISTICAL SAMPLING TECHNIQUES TO
DETERMINE  THE  AMOUNT  OF  TAX  DUE  UNDER   SECTION   ELEVEN   HUNDRED
THIRTY-EIGHT OF THIS PART. THE COMMISSIONER SHALL NOT USE THESE SAMPLING
TECHNIQUES  TO  DETERMINE TAX DUE FROM A PERSON WHOSE "GROSS RECEIPTS OR
SALES", AS THAT TERM IS USED FOR FEDERAL INCOME TAX REPORTING  PURPOSES,
ARE LESS THAN ONE MILLION DOLLARS IN EACH OF THE THREE TAXABLE YEARS FOR
FEDERAL  INCOME  TAX PURPOSES IMMEDIATELY PRECEDING THE CALENDAR YEAR IN
WHICH THE AUDIT IS COMMENCED, OR, IF THAT INFORMATION IS  NOT  AVAILABLE
FOR  THOSE  YEARS, IN EACH OF THE THREE MOST RECENT OF THOSE YEARS (OR A
LESSER NUMBER OF YEARS IF ONLY THE LESSER NUMBER OF YEARS IS  AVAILABLE)
FOR  WHICH  THAT INFORMATION IS AVAILABLE, UNLESS THE PERSON CONSENTS IN
WRITING THAT THE COMMISSIONER MAY USE THESE TECHNIQUES TO DETERMINE  TAX
DUE  FROM  THAT  PERSON.  WITHIN  A  REASONABLE AMOUNT OF TIME AFTER THE
COMMISSIONER DECIDES TO DETERMINE TAX  DUE  USING  STATISTICAL  SAMPLING
TECHNIQUES,  THE  COMMISSIONER SHALL NOTIFY A PERSON FOR WHOM THE AMOUNT
OF TAX DUE IS TO BE DETERMINED USING SUCH TECHNIQUES. SUCH NOTICE  SHALL
DESCRIBE THE SAMPLING TECHNIQUE TO BE USED, INCLUDING THE GENERAL DESIGN
AND SIZE OF THE SAMPLE.
  (B)  THE  COMMISSIONER'S  AUTHORITY  TO  USE  THE  SAMPLING TECHNIQUES
AUTHORIZED BY THIS SUBDIVISION SHALL BE IN ADDITION TO ANY OTHER METHODS
AUTHORIZED BY LAW, AND NOTHING IN THIS SUBDIVISION MAY BE  CONSTRUED  TO
LIMIT  THE USE OF ANY OTHER METHOD. NOR MAY ANYTHING IN THIS SUBDIVISION
OR OTHER PROVISION OF LAW  BE  CONSTRUED  TO  LIMIT  THE  COMMISSIONER'S
AUTHORITY  TO USE GENERALLY ACCEPTED STATISTICAL SAMPLING TECHNIQUES FOR
PURPOSES OTHER THAN DETERMINING  TAX  DUE,  SUCH  AS  EXAMINING  RECORDS
REQUIRED  TO  BE KEPT BY THIS ARTICLE OR RETURNS AND REPORTS REQUIRED TO

S. 6610--A                         35                         A. 9710--A

BE FILED OR SUBMITTED BY THIS ARTICLE.  STATISTICAL SAMPLING  TECHNIQUES
AND ANY RESULTS THEREFROM SHALL NOT BE DEEMED TO BE AN ESTIMATE BASED ON
AN EXTERNAL INDEX.
  S  3.  This act shall take effect immediately; provided, however, that
the provisions of this act shall apply, with  respect  to  the  determi-
nation  of  tax due under article 28 of the tax law or under or pursuant
to the authority of other provisions of the tax law which incorporate or
make reference to such article 28, to any tax  due  that  has  not  been
assessed on the date this act becomes a law.

                                 PART J

  Section  1.  Paragraph  1  of subdivision (e) of section 29 of the tax
law, as added by section 1 of part UU-1 of chapter 57  of  the  laws  of
2008, is amended to read as follows:
  (1)  If a tax return preparer is required to file authorized tax docu-
ments electronically pursuant to subdivision (b) of  this  section,  and
that  preparer  fails  to  file one or more of those documents electron-
ically, then that preparer will be subject to a penalty of fifty dollars
for each failure to electronically  file  an  authorized  tax  document,
unless  it  is shown that the failure is due to reasonable cause and not
due to willful neglect. [For  purposes  of  this  paragraph,  reasonable
cause shall include, but not be limited to, a taxpayer's election not to
electronically file the authorized tax document.]
  S  2.  The  tax  law  is amended by adding a new section 33 to read as
follows:
  S 33.  CORRECTION PERIODS FOR ELECTRONIC TAX DOCUMENTS  AND  PAYMENTS.
(A) FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS HAVE THE SPECIFIED
MEANINGS:
  (1)  "ELECTRONIC  FUNDS  WITHDRAWAL"  MEANS  THE  PROCESS BY WHICH THE
DEPARTMENT, WITH A TAXPAYER'S PERMISSION, ORIGINATES AN ELECTRONIC ORDER
FROM ITS BANK TO THE TAXPAYER'S BANK TO WITHDRAW FUNDS FROM THE  TAXPAY-
ER'S  BANK  ACCOUNT SO THAT THE TAXPAYER MAY PAY A TAX LIABILITY ASSOCI-
ATED WITH A TAX DOCUMENT.
  (2) "ELECTRONIC POSTMARK" MEANS A RECORD OF THE DATE AND  TIME  (IN  A
PARTICULAR TIME ZONE) THAT AN AUTHORIZED ELECTRONIC TRANSMITTER RECEIVES
THE  TRANSMISSION  OF  A TAXPAYER'S ELECTRONICALLY FILED TAX DOCUMENT ON
ITS HOST SYSTEM.
  (3) "ELECTRONIC TRANSMITTER" MEANS A PERSON OR ENTITY THAT IS  AUTHOR-
IZED  TO  SUBMIT  ELECTRONIC TAX DOCUMENTS DIRECTLY TO THE DEPARTMENT OR
DIRECTLY TO THE INTERNAL REVENUE SERVICE FOR FORWARDING TO  THE  DEPART-
MENT.
  (4)  "REJECT"  OR  "REJECTED"  MEANS  THAT AN ELECTRONICALLY FILED TAX
DOCUMENT OR AN AUTHORIZATION FOR AN ELECTRONIC FUNDS WITHDRAWAL  IS  NOT
ACCEPTED FOR PROCESSING.
  (5)  "SUBMIT" OR "SUBMITTED" MEANS THE DATE OF THE ELECTRONIC POSTMARK
ASSIGNED BY AN ELECTRONIC TRANSMITTER TO  AN  ELECTRONICALLY  FILED  TAX
DOCUMENT  OR  AUTHORIZATION FOR AN ELECTRONIC FUNDS WITHDRAWAL. HOWEVER,
IF AN ELECTRONIC TRANSMITTER DOES NOT  ASSIGN  AN  ELECTRONIC  POSTMARK,
THEN  AN ELECTRONICALLY FILED TAX DOCUMENT OR AUTHORIZATION FOR AN ELEC-
TRONIC FUNDS WITHDRAWAL SHALL BE DEEMED SUBMITTED ON THE EARLIER OF  THE
DATE  THE INTERNAL REVENUE SERVICE RECEIVES THE ELECTRONICALLY FILED TAX
DOCUMENT OR AUTHORIZATION FOR AN ELECTRONIC  FUNDS  WITHDRAWAL,  OR  THE
DATE  THE  DEPARTMENT  RECEIVES THE ELECTRONICALLY FILED TAX DOCUMENT OR
AUTHORIZATION FOR AN ELECTRONIC FUNDS WITHDRAWAL. IN ANY OF  THE  AFORE-
MENTIONED  CASES,  IF  THE  TAXPAYER  CAN  ESTABLISH  THAT  THE  TIME OF

S. 6610--A                         36                         A. 9710--A

SUBMISSION, ADJUSTED FOR THE TAXPAYER'S TIME ZONE, WAS TIMELY, THE  TIME
OF SUBMISSION SHALL BE BASED ON THE TAXPAYER'S TIME ZONE.
  (6)  "TAX"  MEANS ANY TAX, FEE, SPECIAL ASSESSMENT OR OTHER IMPOSITION
ADMINISTERED BY THE COMMISSIONER.
  (7) "TAX DOCUMENT" MEANS ANY RETURN, REPORT OR OTHER DOCUMENT RELATING
TO A TAX.
  (B) IF A TAX DOCUMENT IS REQUIRED OR PERMITTED TO BE  FILED  WITH  THE
DEPARTMENT  ELECTRONICALLY  (WHETHER DIRECTLY, DIRECTLY THROUGH A RETURN
TRANSMITTER OR THROUGH THE INTERNAL REVENUE SERVICE), THE  TAX  DOCUMENT
IS  SUBMITTED ELECTRONICALLY ON OR BEFORE THE DUE DATE FOR SUCH DOCUMENT
(INCLUDING ANY EXTENSION OF TIME),  AND  THE  ELECTRONICALLY  FILED  TAX
DOCUMENT IS REJECTED, THEN THE COMMISSIONER MAY, BY INSTRUCTION, PROVIDE
FOR  A  REASONABLE  PERIOD  OF TIME DURING WHICH THE TAX DOCUMENT MAY BE
CORRECTED AND RE-SUBMITTED. IF THE CORRECTED TAX DOCUMENT IS  RE-SUBMIT-
TED  ON  OR  BEFORE THE EXPIRATION DATE OF THE EXTENDED TIME PERIOD, AND
SUCH DOCUMENT IS ACCEPTED BY THE DEPARTMENT  FOR  PROCESSING,  THEN  THE
RE-SUBMITTED TAX DOCUMENT SHALL BE DEEMED TO HAVE BEEN TIMELY FILED EVEN
THOUGH THE DEPARTMENT RECEIVES IT AFTER THE APPLICABLE DUE DATE (INCLUD-
ING ANY EXTENSION OF TIME).
  (C) (1) IF A TAXPAYER HAS SUBMITTED AN AUTHORIZATION FOR AN ELECTRONIC
FUNDS  WITHDRAWAL  ON  OR BEFORE THE DUE DATE FOR PAYMENT (INCLUDING ANY
EXTENSION OF TIME), AND SUCH AUTHORIZATION IS REJECTED  BY  THE  DEPART-
MENT,  THEN  THE COMMISSIONER MAY, BY INSTRUCTION, PROVIDE FOR A REASON-
ABLE PERIOD OF TIME, COMMENCING FROM THE  DATE  OF  REJECTION,  FOR  THE
TAXPAYER  TO  RE-SUBMIT THE AUTHORIZATION FOR THE ELECTRONIC FUNDS WITH-
DRAWAL. IF THE AUTHORIZATION FOR  THE  ELECTRONIC  FUNDS  WITHDRAWAL  IS
RE-SUBMITTED ON OR BEFORE THE EXPIRATION DATE OF THE EXTENDED TIME PERI-
OD,  THEN  THE  ELECTRONIC FUNDS WITHDRAWAL SHALL BE DEEMED TO HAVE BEEN
TIMELY PAID EVEN THOUGH THE DEPARTMENT RECEIVES IT AFTER THE  APPLICABLE
DUE DATE (INCLUDING ANY EXTENSION OF TIME).
  (2) ANY REASONABLE PERIOD OF TIME PROVIDED FOR BY THE COMMISSIONER FOR
RE-SUBMISSION OF AN AUTHORIZATION FOR AN ELECTRONIC FUNDS WITHDRAWAL MAY
DIFFER  FROM  THE  REASONABLE  TIME  PERIOD, IF ANY, PROVIDED FOR BY THE
COMMISSIONER WITH RESPECT TO THE ELECTRONICALLY FILED TAX DOCUMENT  WITH
WHICH THE TAXPAYER'S ELECTRONIC FUNDS WITHDRAWAL IS ASSOCIATED.
  (3)  IN LIEU OF RE-SUBMITTING AN AUTHORIZATION FOR AN ELECTRONIC FUNDS
WITHDRAWAL, THE COMMISSIONER MAY PERMIT A TAXPAYER  TO  INSTEAD  PAY  BY
SUBSTITUTE  MEANS, AS DEFINED BY INSTRUCTION. ANY SUCH INSTRUCTION SHALL
ADDRESS THE TIMELINESS OF PAYMENT BY SUBSTITUTE MEANS.
  (D) THE PROVISIONS OF  THIS  SECTION  SHALL  NOT  APPLY  TO  TAXPAYERS
PARTICIPATING  IN  THE  ELECTRONIC FUNDS TRANSFER PROGRAMS PRESCRIBED BY
SECTIONS NINE AND TEN OF THIS ARTICLE.
  S 3. The tax law is amended by adding a new  section  34  to  read  as
follows:
  S 34.  TAX RETURN PREPARERS AND SOFTWARE COMPANIES NOT TO CHARGE SEPA-
RATELY  FOR  NEW YORK E-FILE SERVICES. (A) FOR PURPOSES OF THIS SECTION,
THE FOLLOWING TERMS HAVE THE SPECIFIED MEANINGS:
  (1) "AUTHORIZED TAX DOCUMENT" MEANS A TAX DOCUMENT WHICH  THE  COMMIS-
SIONER HAS AUTHORIZED TO BE FILED ELECTRONICALLY.
  (2) "ELECTRONIC" MEANS COMPUTER TECHNOLOGY.
  (3) "SOFTWARE COMPANY" MEANS A DEVELOPER OF TAX SOFTWARE.
  (4)  "TAX"  MEANS  ANY TAX OR OTHER MATTER ADMINISTERED BY THE COMMIS-
SIONER PURSUANT TO THIS CHAPTER OR ANY OTHER PROVISION OF LAW.
  (5) "TAX DOCUMENT" MEANS A RETURN, REPORT OR ANY OTHER DOCUMENT RELAT-
ING TO A TAX OR OTHER MATTER ADMINISTERED BY THE COMMISSIONER.

S. 6610--A                         37                         A. 9710--A

  (6) "TAX RETURN PREPARER" MEANS ANY PERSON WHO  PREPARES  FOR  COMPEN-
SATION,  OR  WHO  EMPLOYS  OR ENGAGES ONE OR MORE PERSONS TO PREPARE FOR
COMPENSATION, ANY AUTHORIZED TAX DOCUMENT. FOR PURPOSES OF THIS SECTION,
THE TERM "TAX RETURN PREPARER" ALSO INCLUDES A PAYROLL SERVICE.
  (7)  "TAX  SOFTWARE"  MEANS ANY COMPUTER SOFTWARE PROGRAM INTENDED FOR
TAX RETURN PREPARATION PURPOSES. FOR PURPOSES OF THIS SECTION, THE  TERM
"TAX  SOFTWARE"  INCLUDES, BUT IS NOT LIMITED TO, AN OFF-THE-SHELF SOFT-
WARE PROGRAM LOADED ONTO A TAX RETURN PREPARER'S OR TAXPAYER'S COMPUTER,
OR AN ONLINE TAX PREPARATION APPLICATION.
  (B) IT SHALL BE UNLAWFUL FOR A  TAX  RETURN  PREPARER  OR  A  SOFTWARE
COMPANY TO CHARGE A SEPARATE FEE FOR THE ELECTRONIC FILING OF AUTHORIZED
TAX DOCUMENTS. IT SHALL ALSO BE UNLAWFUL FOR A SOFTWARE COMPANY TO OFFER
A  VERSION OF ITS TAX SOFTWARE THAT CHARGES A SEPARATE FEE FOR THE ELEC-
TRONIC FILING OF AUTHORIZED TAX DOCUMENTS AND ONE VERSION  OF  THE  SAME
TAX SOFTWARE THAT DOES NOT.
  (C) ANY TAX RETURN PREPARER OR SOFTWARE COMPANY VIOLATING THIS SECTION
WILL BE LIABLE FOR A CIVIL PENALTY OF FIVE HUNDRED DOLLARS FOR THE FIRST
VIOLATION  AND  ONE  THOUSAND DOLLARS FOR EACH SUCCEEDING VIOLATION. THE
CIVIL PENALTIES IMPOSED BY THIS SECTION SHALL BE PAID TO THE COMMISSION-
ER UPON NOTICE AND DEMAND, AND WILL BE ASSESSED, COLLECTED AND  PAID  IN
THE SAME MANNER AS TAXES UNDER ARTICLE TWENTY-SEVEN OF THIS CHAPTER.
  S  4.  Paragraph 5 of subsection (u) of section 685 of the tax law, as
added by section 2 of part Q of chapter 61  of  the  laws  of  2005,  is
amended to read as follows:
  (5)  Failure  to  electronically  file.  If  a  tax return preparer is
required to file returns electronically pursuant  to  paragraph  ten  of
subsection  (g)  of section six hundred fifty-eight of this article, and
such preparer fails to file one or more of such returns  electronically,
then  such  preparer  shall be subject to a penalty of fifty dollars for
each such failure to electronically file a return, unless  it  is  shown
that  such  failure  is  due  to reasonable cause and not due to willful
neglect.   [For purposes  of  this  paragraph,  reasonable  cause  shall
include,  but  not be limited to, a taxpayer's election not to electron-
ically file his or her return.]
  S 5. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis-
trative code of the city of New York, as added by section 4 of part Q of
chapter 61 of the laws of 2005, is amended to read as follows:
  (5) Failure to electronically  file.  If  a  tax  return  preparer  is
required  to  file  returns  electronically pursuant to paragraph ten of
subdivision (g) of section 11-1758, and such preparer fails to file  one
or  more  of  such  returns  electronically, then such preparer shall be
subject to a penalty of fifty dollars for each such failure to electron-
ically file a return, unless it is shown that such  failure  is  due  to
reasonable  cause  and not due to willful neglect. [For purposes of this
paragraph, reasonable cause shall include, but  not  be  limited  to,  a
taxpayer's election not to electronically file his or her return.]
  S  6.  This act shall take effect immediately, provided, however, that
sections one, four and five of this act shall apply to tax  returns  and
other  tax  documents  required to be filed electronically by tax return
preparers on or after December 31, 2010, and section  two  of  this  act
shall apply to electronic returns and payments made for tax years begin-
ning after December 31, 2010.

                                 PART K

S. 6610--A                         38                         A. 9710--A

  Section  1.  The tax law is amended by adding a new section 31 to read
as follows:
  S 31. USE OF ALTERNATIVE MEANS OF COMMUNICATION TO PROVIDE TAX NOTICES
AND OTHER TAX DOCUMENTS. NOTWITHSTANDING ANY OTHER PROVISION OF NEW YORK
STATE  LAW OR REGULATION REQUIRING A TAX NOTICE OR OTHER TAX DOCUMENT TO
BE MAILED BY FIRST CLASS MAIL, CERTIFIED MAIL, REGISTERED  MAIL,  CERTI-
FIED  MAIL  RETURN  RECEIPT REQUESTED, OR REGISTERED MAIL RETURN RECEIPT
REQUESTED, OR ANY OTHER SPECIFIED TYPE OF MAILING,  THE  DEPARTMENT  MAY
USE  ANY  FORM OF COMMUNICATION DEEMED BY THE COMMISSIONER TO BE REASON-
ABLY CALCULATED, UNDER ALL THE CIRCUMSTANCES, TO APPRISE  THE  ADDRESSEE
OF  THE  INFORMATION  CONTAINED  THEREIN, INCLUDING, BUT NOT LIMITED TO,
E-MAIL OR OTHER FORM OF ELECTRONIC COMMUNICATION WHEN THE DEPARTMENT HAS
OBTAINED THE ADDRESSEE'S AUTHORIZATION TO COMMUNICATE  USING  ELECTRONIC
MEANS.  IF THE DEPARTMENT DEEMS AN ALTERNATIVE MEANS OF COMMUNICATION TO
BE REASONABLY CALCULATED, UNDER ALL  THE  CIRCUMSTANCES,  TO  REACH  THE
ADDRESSEE,  AND  THEN  TRANSMITS THE TAX NOTICE OR OTHER TAX DOCUMENT BY
SUCH MEANS IN ACCORD WITH ITS ESTABLISHED BUSINESS RULES  AND  PROCESSES
FOR  THAT COMMUNICATION METHOD, THERE SHALL ARISE A PRESUMPTION THAT THE
TAX NOTICE OR OTHER TAX DOCUMENT WAS DELIVERED TO AND  RECEIVED  BY  THE
ADDRESSEE.
  S 2. This act shall take effect immediately.

                                 PART L

  Section  1.  Subdivision  fifteenth  of section 171 of the tax law, as
amended by chapter 513 of the laws  of  2002,  is  amended  to  read  as
follows:
  Fifteenth. Have authority to compromise any taxes OR OTHER IMPOSITIONS
or  any  warrant or judgment for taxes OR OTHER IMPOSITIONS administered
by the commissioner, and the penalties and interest in connection there-
with, if the tax debtor has been discharged in bankruptcy, [or] is shown
by proofs submitted to be insolvent,  [but]  OR  SHOWS  BY  PROOFS  THAT
COLLECTION IN FULL WOULD CAUSE THE TAX DEBTOR UNDUE ECONOMIC HARDSHIP OR
THAT  THERE  IS ANY OTHER EXCEPTIONAL MITIGATING CIRCUMSTANCE THAT WOULD
RENDER ACCEPTANCE OF THE COMPROMISE JUST AND APPROPRIATE, PROVIDED  THAT
the  amount  payable  in  compromise [shall in no event be less than the
amount, if any, recoverable through legal proceedings, and provided that
where] REASONABLY REFLECTS COLLECTION POTENTIAL OR IS  OTHERWISE  JUSTI-
FIED  BY  THE  PROOFS  OFFERED BY THE TAX DEBTOR. PROVIDED, FURTHER, THE
COMMISSIONER SHALL NOT ACCEPT ANY  AMOUNT  PAYABLE  IN  COMPROMISE  THAT
WOULD  UNDERMINE COMPLIANCE WITH THE TAXES OR OTHER IMPOSITIONS ADMINIS-
TERED BY THE COMMISSIONER, NOR SHALL THE  COMMISSIONER  ENTER  INTO  ANY
OFFER  OF  COMPROMISE THAT WOULD BE ADVERSE TO THE BEST INTERESTS OF THE
STATE. WHERE the amount owing for taxes  OR  OTHER  IMPOSITIONS  or  the
warrant  or  judgment,  exclusive of any penalties and interest, is more
than one hundred thousand dollars, such compromise  shall  be  effective
only when approved by a justice of the supreme court.
  S  2.  Subdivision  eighteenth-a  of  section  171  of the tax law, as
amended by chapter 577 of the laws  of  1997,  is  amended  to  read  as
follows:
  Eighteenth-a.  Have authority to compromise civil liability, with such
qualifications and limitations as may be established  pursuant  to  such
rules  and  regulations  as  the  commissioner may prescribe, where such
liability arises under [this chapter, or under a law enacted pursuant to
the authority of this chapter] A TAX OR OTHER IMPOSITION which is admin-
istered by the [department, or under  a  law  enacted  pursuant  to  the

S. 6610--A                         39                         A. 9710--A

authority of article two-E of the general city law] COMMISSIONER, at any
time  prior  to  the  time  the  tax, OTHER IMPOSITION or administrative
action becomes finally and irrevocably fixed and no  longer  subject  to
administrative  review. Upon acceptance of an offer in compromise by the
commissioner, the matter may not be reopened except upon  a  showing  of
fraud, malfeasance or misrepresentation of a material fact. The attorney
general may compromise any such liability after reference to the depart-
ment of law for prosecution or defense at any time prior to the time the
tax, OTHER IMPOSITION or administrative action taken by the [department]
COMMISSIONER is no longer subject to judicial review. Whenever a compro-
mise  is  made  by  the [department] COMMISSIONER of any such liability,
there shall be placed on file in the  office  of  the  commissioner  the
opinion  of  the  counsel  for  such department, with his OR HER reasons
therefor, with a statement of: (a) the amount of tax OR OTHER IMPOSITION
and any other issues which may be the subject of  such  compromise,  (b)
the  amount of interest, additions to the tax, or penalty imposed by law
on the taxpayer or other persons against whom the administrative  action
was taken by the department, and (c) the amount actually paid in accord-
ance  with  the  terms of the compromise.  Notwithstanding the preceding
sentence, no such opinion shall be required with respect to the  compro-
mise  of  any civil liability in which the unpaid amount of tax OR OTHER
IMPOSITION which was the subject of the administrative action (including
any interest, additions to tax, or penalty) is less  than  [twenty-five]
FIFTY thousand dollars.
  S 3. This act shall take effect immediately.

                                 PART M

  Section 1. Communication services study. On or before the date that is
245  days  after  this  act shall have become a law, the commissioner of
taxation and finance, in consultation  with  the  department  of  public
service  and  the  office of real property services, shall submit to the
governor, the temporary president of the  senate,  the  speaker  of  the
assembly, the minority leaders of the senate and the assembly, the chair
and  ranking  minority  member  of the senate finance committee, and the
chair and ranking minority member of the assembly ways and means commit-
tee a written report prepared by the office of tax  policy  analysis  of
the  department of taxation and finance. The report shall examine statu-
tory and policy options designed to achieve the goal of  improved  taxa-
tion  of  communication  services  in New York state (including, but not
limited to, wireline and wireless telecommunication services, telecommu-
nication services using voice over  internet  protocol,  and  cable  and
satellite  television  services), and the state and local revenue impli-
cations of those options. The report shall take  into  account  commonly
accepted goals of tax policy (such as fairness, simplicity and effect on
the economic climate of this state and its communications industry). The
report  shall also take into consideration developments of new technolo-
gies and business models used in the provision of communication services
and the desired goal that  this  state  should  formulate  an  effective
communications  tax  policy. To this end, the report shall recommend tax
policies that shall modernize the taxation of communication services.
  S 2. This act shall take effect immediately.

                                 PART N

S. 6610--A                         40                         A. 9710--A

  Section 1. Section 1 of part J of chapter 405 of  the  laws  of  1999,
amending  the  real  property tax law relating to improving the adminis-
tration of the school tax relief (STAR) program, as amended by section 3
of part PP-1 of chapter 57 of the laws of 2008, is amended  to  read  as
follows:
  Section  1. Notwithstanding the provisions of article 5 of the general
construction law, the provisions of the  tax  law  amended  by  sections
94-a,  94-d and 94-g of chapter 2 of the laws of 1995 are hereby revived
and shall continue in full force and effect as they existed on March 31,
1999 [through May 31, 2010, when upon such date they shall expire and be
repealed]. Sections 1, 2, 3, 4, and 5, and such part of  section  10  of
chapter  336  of the laws of 1999 as relates to providing for the effec-
tiveness of such sections 1, 2, 3, 4 and 5 shall be nullified in  effect
on  the  effective date of this section, except that the amendments made
to: paragraph (2) of subdivision a of section 1612 of  the  tax  law  by
such section 1; and subdivision b of section 1612 of the tax law by such
section  2;  and the repeal of section 152 of chapter 166 of the laws of
1991 made by such section 5 shall continue to remain in effect.
  S 2. Paragraph 1 of subdivision a of section 1612 of the tax  law,  as
amended  by  chapter  336  of  the  laws  of 1999, is amended to read as
follows:
  (1) sixty percent of the total amount for which tickets have been sold
for a lawful lottery game introduced on or after the effective  date  of
this paragraph[, subject to the following provisions:
  (A)  drawings  in such game shall be held during no more than thirteen
hours each day, no more than eight hours of which shall be consecutive;
  (B) such game shall be available only on premises occupied by licensed
lottery sales agents, subject to the following provisions:
  (i) if the licensee holds a license issued pursuant to  the  alcoholic
beverage  control law to sell alcoholic beverages for consumption on the
premises, then not less than twenty-five percent of the gross sales must
result from sales of food;
  (ii) if the licensee does not hold a license issued  pursuant  to  the
alcoholic  beverage control law to sell alcoholic beverages for consump-
tion on the premises, then the  premises  must  have  a  minimum  square
footage greater than two thousand five hundred square feet;
  (iii)  notwithstanding  the foregoing provisions, television equipment
that  automatically  displays  the  results  of  such  drawings  may  be
installed and used without regard to the percentage of food sales or the
square footage if such premises are used as:
  (I) a commercial bowling establishment, or
  (II)  a facility authorized under the racing, pari-mutuel wagering and
breeding law to accept pari-mutuel wagers;
  (C) the rules for the operation of such game shall be as prescribed by
regulations promulgated and adopted by the division,  provided  however,
that such rules shall provide that no person under the age of twenty-one
may  participate in such games on the premises of a licensee who holds a
license issued pursuant to the alcoholic beverage control  law  to  sell
alcoholic  beverages  for  consumption  on  the premises; and, provided,
further, that such regulations may be revised on an emergency basis  not
later than ninety days after the enactment of this paragraph in order to
conform such regulations to the requirements of this paragraph]; or
  S 3. This act shall take effect immediately.

                                 PART O

S. 6610--A                         41                         A. 9710--A

  Section  1.  Section  4  of part C of chapter 383 of the laws of 2001,
amending the tax law and other laws relating to authorizing the division
of the lottery to conduct a pilot program  involving  the  operation  of
video lottery terminals at certain racetracks, as amended by chapter 140
of the laws of 2008, is amended to read as follows:
  S  4. This act shall take effect immediately[; provided, however, that
the provisions of this act shall expire and be deemed repealed  December
31, 2033].
  S  2. Section 4 of part C of chapter 383 of the laws of 2001, amending
the tax law and other laws relating to authorizing the division  of  the
lottery  to  conduct  a  pilot  program involving the operation of video
lottery terminals at certain racetracks, as amended by  chapter  286  of
the laws of 2008, is amended to read as follows:
  S  4. This act shall take effect immediately[; provided, however, that
the provisions of this act shall expire and be deemed repealed  December
31, 2050].
  S  3.  Section  13  of  chapter  140  of the laws of 2008 amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
thoroughbred racing is REPEALED.
  S 4. Section 5 of chapter 286 of the laws of 2008 amending the tax law
relating to annual capital improvement credits for video lottery  gaming
operators is REPEALED.
  S  5.  Subdivision  b  of section 1617-a of the tax law, as amended by
section 2 of part Z3 of chapter 62 of the laws of 2003,  is  amended  to
read as follows:
  b.  [Video]  THE HOURS OF OPERATION OF VIDEO lottery gaming shall only
be permitted [for no more than sixteen consecutive hours per day and  on
no day shall such operation be conducted past 2:00 a.m] AS PRESCRIBED BY
THE DIVISION OF THE LOTTERY.
  S  6.  Clause (G) of subparagraph (ii) of paragraph 1 of subdivision b
of section 1612 of the tax law, as amended by chapter 342 of the laws of
2009, is amended to read as follows:
  (G) notwithstanding [any other provisions of  this  section,]  CLAUSES
(A),  (B), (C), (D), (E) AND (F) OF THIS SUBPARAGRAPH, when no more than
one vendor track located in the town of Thompson in Sullivan  county  at
the  site  of  the  former  Concord  Resort at which a qualified capital
investment has been made and  no  fewer  than  one  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 credit of  the  state  lottery  fund  created  by
section  ninety-two-c  of  the state finance law] THE VENDOR'S FEE SHALL
EQUAL THE TOTAL REVENUE WAGERED AT THE  VENDOR  TRACK  AFTER  PAYOUT  OF
PRIZES  PURSUANT TO THIS SUBDIVISION REDUCED BY the greater of (i) twen-
ty-five percent of total revenue after  payout  for  prizes  for  "video
lottery  games"  or  (ii) for the first eight years of operation thirty-
eight million dollars, and beginning 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,  adminis-
tration  and  procurement  of the video lottery terminal operation at no
more than one vendor track located in the town of Thompson  in  Sullivan
county at the site of the former Concord Resort, 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] VENDOR FEE IS CALCULATED pursuant to subclause  (i)  of

S. 6610--A                         42                         A. 9710--A

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]  VENDOR'S
FEE  SHALL  BE  FURTHER  REDUCED BY 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]  REDUCTION  exceed
five million dollars.
  [The  balance shall be paid as a vendor's fee to the track operator of
no more than one vendor track located in the town of Thompson in  Sulli-
van  county  at  the  site of the former Concord Resort for serving as a
lottery agent under this chapter.]
  Provided, however, that in the case of no more than one  vendor  track
located  in  the  town of Thompson in Sullivan county at the site of the
former Concord Resort with a qualified capital investment, and one thou-
sand full-time, permanent employees [as  of  July  first,  two  thousand
eleven]  if  at  any time after three years of opening operations of the
licensed video gaming facility or  licensed  vendor  track,  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  six hundred million 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  population  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, lodg-
ing,  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 video gaming facility,
vendor track or related and adjacent facilities for a minimum  of  thir-
ty-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 video gaming facility, vendor track  or
related  and  adjacent  facilities for a combined 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 one thou-
sand five hundred full-time permanent employees  after  three  years  of
opening  operations  of  the  licensed video gaming facility or licensed
vendor track.
  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

S. 6610--A                         43                         A. 9710--A

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)  one  hundred  percent  of  the recapture amount if the employment
shortfall is greater  than  sixty-six  and  two-thirds  percent  of  the
employment goal;
  (ii)  seventy-five  percent  of the recapture amount if the employment
shortfall is greater than thirty-three  and  one-third  percent  of  the
employment goal;
  (iii)  forty-nine  and one-half percent of the recapture amount if the
employment shortfall is greater than thirty percent  of  the  employment
goal;
  (iv)  twenty-two  percent  of  the  recapture amount if the employment
shortfall is greater than twenty percent of the employment goal;
  (v) eleven percent of the recapture amount if the employment shortfall
is greater than ten percent of the employment goal.
  S 7. This act shall take effect immediately.

                                 PART P

  Section 1. Section 253 of the tax law  is  amended  by  adding  a  new
subdivision 4 to read as follows:
  4.  (A)  A TAX, MEASURED BY THE AMOUNT OF PRINCIPAL DEBT OR OBLIGATION
WHICH IS OR UNDER ANY CONTINGENCY MAY BE SECURED  AT  THE  DATE  OF  THE
EXECUTION  THEREOF,  OR  AT ANY TIME THEREAFTER, BY A SECURITY AGREEMENT
PERTAINING TO A COOPERATIVE INTEREST IN A COOPERATIVE  ORGANIZATION,  AS
EVIDENCED  BY  A  FINANCING  STATEMENT,  IS IMPOSED ON THE FILING OF THE
FINANCING STATEMENT.
  (B) THE RATE AND INCIDENCE OF THE TAX SHALL BE DETERMINED PURSUANT  TO
THIS SECTION.
  (C)  EXCEPT  AS  OTHERWISE  PROVIDED  IN  THIS  SUBDIVISION,  ALL  THE
PROVISIONS OF THIS ARTICLE RELATING TO OR  APPLICABLE  TO  THE  ADMINIS-
TRATION,  COLLECTION,  DETERMINATION AND DISTRIBUTION OF THE TAX IMPOSED
BY THIS SECTION SHALL APPLY TO THE TAX IMPOSED UNDER  THE  AUTHORITY  OF
THIS  SUBDIVISION  WITH  SUCH  MODIFICATION AS MAY BE NECESSARY TO ADAPT
SUCH LANGUAGE TO THE TAX SO AUTHORIZED. ANY REFERENCE TO A MORTGAGE WILL
BE DEEMED TO BE A REFERENCE TO A FINANCING STATEMENT  THAT  EVIDENCES  A
SECURITY  AGREEMENT. SUCH PROVISIONS SHALL APPLY WITH THE SAME FORCE AND
EFFECT AS IF THOSE PROVISIONS HAD BEEN SET  FORTH  IN  THIS  SUBDIVISION
EXCEPT  TO  THE  EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A
PROVISION OF THIS SUBDIVISION OR NOT RELEVANT TO THE TAX  AUTHORIZED  BY
THIS SUBDIVISION.
  (D)  NO  REMEDY  OTHERWISE  AVAILABLE TO A SECURED PARTY UNDER ARTICLE
NINE OF THE UNIFORM COMMERCIAL CODE SHALL  BE  AVAILABLE  TO  ENFORCE  A
SECURITY AGREEMENT PERTAINING TO A COOPERATIVE INTEREST IN A COOPERATIVE
ORGANIZATION  THAT  IS  EVIDENCED  BY A FINANCING STATEMENT, UNLESS THAT
FINANCING STATEMENT IS FILED AND THE TAX IMPOSED PURSUANT TO THE AUTHOR-
ITY OF THIS SUBDIVISION HAS BEEN PAID.
  (E) FOR THE PURPOSES OF THIS SUBDIVISION:
  (1) "COOPERATIVE INTEREST" MEANS AN OWNERSHIP INTEREST  IN  A  COOPER-
ATIVE ORGANIZATION, WHICH INTEREST WHEN CREATED, IS COUPLED WITH POSSES-
SORY RIGHTS OF A PROPRIETARY NATURE IN IDENTIFIED PHYSICAL SPACE BELONG-
ING TO THE COOPERATIVE ORGANIZATION.

S. 6610--A                         44                         A. 9710--A

  (2)  "COOPERATIVE ORGANIZATION" MEANS AN ORGANIZATION WHICH HAS AS ITS
PRINCIPAL ASSET AN INTEREST IN REAL PROPERTY IN THIS STATE AND IN  WHICH
ORGANIZATION ALL OWNERSHIP INTERESTS ARE COOPERATIVE INTERESTS.
  (3)  "FINANCING  STATEMENT"  MEANS  A RECORD OR RECORDS COMPOSED OF AN
INITIAL FINANCING STATEMENT AND ANY FILED RECORD RELATING TO THE INITIAL
FINANCING STATEMENT.
  (4) "SECURITY AGREEMENT" MEANS AN AGREEMENT THAT CREATES  OR  PROVIDES
FOR A SECURITY INTEREST.
  (F)  COUNTIES  OR CITIES AUTHORIZED UNDER THIS ARTICLE TO IMPOSE A TAX
ARE AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS TO IMPOSE  IN
SUCH COUNTY OR CITY A TAX ON THE FILING OF FINANCING STATEMENTS PERTAIN-
ING  TO  A  COOPERATIVE  INTEREST IN A COOPERATIVE ORGANIZATION. ANY TAX
THAT HAS BEEN IMPOSED BY A COUNTY OR CITY UNDER THE  AUTHORITY  OF  THIS
ARTICLE  SHALL  BE DEEMED TO INCLUDE THE AUTHORITY TO IMPOSE AND COLLECT
THE TAX ON THE RECORDING OF A FINANCING STATEMENT PERTAINING TO A  COOP-
ERATIVE INTEREST IN A COOPERATIVE ORGANIZATION IN THE SAME MANNER AS THE
LOCAL MORTGAGE RECORDING TAX.
  S 2. Subdivisions 1 and 2 of section 253-a of the tax law, subdivision
1  and  paragraph  (a) of subdivision 2 as amended by chapter 343 of the
laws of 1990 and subdivision 2 as added by chapter 241 of  the  laws  of
1989, are amended to read as follows:
  1.  Any city in this state having a population of one million or more,
acting through its local legislative  body,  is  hereby  authorized  and
empowered  to  adopt  and amend local laws imposing in any such city (A)
prior to February first, nineteen hundred  eighty-two  a  tax  of  fifty
cents,  (B)  on or after February first, nineteen hundred eighty-two and
before July first, nineteen hundred eighty-two with respect to (i)  one,
two  or three-family houses, individual cooperative apartments and indi-
vidual residential condominium units, and (ii) real property securing  a
principal debt or obligation of less than five hundred thousand dollars,
a  tax of fifty cents, and with respect to all other real property a tax
of one dollar and twelve and one-half  cents,  (C)  on  and  after  July
first,  nineteen  hundred  eighty-two  and before August first, nineteen
hundred ninety with respect to real property securing a  principal  debt
or obligation of less than five hundred thousand dollars, a tax of fifty
cents, with respect to one, two or three-family houses, individual coop-
erative apartments and individual residential condominium units securing
a principal debt or obligation of five hundred thousand dollars or more,
a  tax  of  sixty-two  and one-half cents, and with respect to all other
real property a tax of one dollar and twenty-five cents,  [and]  (D)  on
and  after  August  first,  nineteen hundred ninety with respect to real
property securing a principal debt  or  obligation  of  less  than  five
hundred  thousand dollars, a tax of one dollar, with respect to one, two
or three-family houses  and  individual  residential  condominium  units
securing a principal debt or obligation of five hundred thousand dollars
or  more,  a  tax  of one dollar and twelve and one-half cents, and with
respect to all other real property a tax of one dollar and  seventy-five
cents,  for  each  one hundred dollars and each remaining major fraction
thereof of principal debt or obligation which is or under any contingen-
cy may be secured at the date of execution thereof, or at any time ther-
eafter, by a mortgage on such real property situated  within  such  city
and recorded on or after the date upon which such tax takes effect and a
tax  of  one dollar on such mortgage if the principal debt or obligation
which is or by any contingency may be secured by such mortgage  is  less
than  one hundred dollars. In each instance where the tax imposed pursu-
ant to this subdivision is one dollar and twenty-five cents for each one

S. 6610--A                         45                         A. 9710--A

hundred dollars and each remaining major fraction thereof of such  prin-
cipal debt or obligation, fifty percent of the total amount of such tax,
including  fifty  percent of any interest or penalties thereon, shall be
set  aside  in  a special account by the commissioner of finance of such
city. In each instance where the tax imposed pursuant to  this  subdivi-
sion  is  one dollar and seventy-five cents for each one hundred dollars
and each remaining major fraction thereof  of  such  principal  debt  or
obligation,  thirty-five and seven-tenths percent of the total amount of
such tax, including thirty-five and seven-tenths percent of any interest
or penalties thereon, shall also be set aside in such  special  account.
Moneys in such account shall be used for payment by such commissioner to
the  state  comptroller  for deposit in the urban mass transit operating
assistance account of the mass transportation operating assistance  fund
of any amount of insufficiency certified by the state comptroller pursu-
ant  to  the  provisions of subdivision six of section eighty-eight-a of
the state finance law, and, on the fifteenth day  of  each  month,  such
commissioner shall transmit all funds in such account on the last day of
the  preceding  month, except the amount required for the payment of any
amount of insufficiency certified by  the  state  comptroller  and  such
amount  as  he deems necessary for refunds and such other amounts neces-
sary to finance the New York city transportation disabled committee  and
the New York city paratransit system as established by section fifteen-b
of  the  transportation  law, provided, however, that such amounts shall
not exceed six percent of the total funds in the account but in no event
be less than two hundred twenty-five thousand  dollars  beginning  April
first,  nineteen hundred eighty-six, and further that beginning November
fifteenth, nineteen hundred eighty-four and  during  the  entire  period
prior  to  operation of such system, the total of such amounts shall not
exceed three hundred seventy-five thousand dollars for  the  administra-
tive  expenses  of  such  committee  and  fifty thousand dollars for the
expenses of the agency designated pursuant to paragraph b of subdivision
five of such section FIFTEEN-B, and other amounts necessary  to  finance
the  operating needs of the private bus companies franchised by the city
of New York and eligible to receive  state  operating  assistance  under
section  eighteen-b  of  the transportation law, provided, however, that
such amounts shall not exceed four percent of the  total  funds  in  the
account,  to the New York city transit authority for mass transit within
the city.  THE TAX IMPOSED UNDER THE AUTHORITY OF PARAGRAPH (D) OF  THIS
SUBDIVISION  IS DEEMED TO INCLUDE A TAX IMPOSED ON THE FILING OF FINANC-
ING STATEMENTS EVIDENCING A SECURITY AGREEMENT PERTAINING TO  A  COOPER-
ATIVE INTEREST IN A COOPERATIVE ORGANIZATION.
  2. (a) For the purpose of determining whether a mortgage is subject to
the  tax authorized to be imposed by paragraph (B) or (C) of subdivision
one of this section at a rate in excess of fifty cents, or by  paragraph
(D)  of  subdivision  one  of  this  section  at a rate in excess of one
dollar, for each one hundred dollars and each remaining  major  fraction
thereof  of  principal  debt  or obligation, the principal debt or obli-
gation which is or under any contingency may be secured at the  date  of
execution  thereof, or at any time thereafter, by such mortgage shall be
aggregated with the principal debt or obligation which is or  under  any
contingency  may  be secured at the date of execution thereof, or at any
time thereafter, by any other mortgage, where such mortgages  form  part
of the same or related transactions and have the same or related mortga-
gors  OR RELATED DEBTORS IN THE CASE OF A FINANCING STATEMENT EVIDENCING
A SECURITY AGREEMENT PERTAINING TO A COOPERATIVE INTEREST IN  A  COOPER-
ATIVE  ORGANIZATION.   If the commissioner of taxation and finance finds

S. 6610--A                         46                         A. 9710--A

that a mortgage transaction or mortgage transactions  have  been  formu-
lated for the purpose of avoiding or evading a rate of tax authorized to
be imposed under subdivision one of this section in excess of the lowest
such  authorized rate, rather than solely for an independent business or
financial purpose, such commissioner shall treat all  of  the  mortgages
forming  part  of  such transaction or transactions as a single mortgage
for the purpose of determining the applicable rate of tax. For  purposes
of  this  subdivision,  there  shall be a presumption that all mortgages
offered for recording within  a  period  of  twelve  consecutive  months
having  the  same or related mortgagors OR RELATED DEBTORS are part of a
related transaction, and such presumption  may  be  rebutted  only  with
clear and convincing evidence to the contrary. The commissioner of taxa-
tion  and  finance  may  require  such  affidavits  and  forms,  and may
prescribe such rules and regulations, as he determines to  be  necessary
to enforce the provisions of this subdivision.  ANY REFERENCE TO A MORT-
GAGE  IN  THIS  SUBDIVISION  INCLUDES A FINANCING STATEMENT EVIDENCING A
SECURITY AGREEMENT PERTAINING TO A COOPERATIVE INTEREST IN A COOPERATIVE
ORGANIZATION.
  (b) The term "related", when used in this subdivision  with  reference
to  mortgagors  OR  DEBTORS, shall include, but shall not be limited to,
the following relationships:
  (i) members of a family, including spouses, ancestors, lineal descend-
ants, and brothers and sisters (whether by the whole or half blood);
  (ii) a shareholder and a corporation more than fifty  percent  of  the
value  of the outstanding stock of which is owned or controlled directly
or indirectly by such shareholder;
  (iii) a partner and a partnership more than fifty percent of the capi-
tal or profits interest in which is  owned  or  controlled  directly  or
indirectly by such partner;
  (iv)  a beneficiary and a trust more than fifty percent of the benefi-
cial interest in which is owned or controlled directly or indirectly  by
such beneficiary;
  (v)  two  or more corporations, partnerships, associations, or trusts,
or any combination  thereof,  which  are  owned  or  controlled,  either
directly or indirectly, by the same person, corporation or other entity,
or interests; and
  (vi) a grantor of a trust and such trust.
  S  3. Subsection (e) of section 9--502 of the uniform commercial code,
as added by chapter 84 of the laws  of  2001,  is  amended  to  read  as
follows:
  (e) Contents  of cooperative addendum. A cooperative addendum SHALL BE
FILED AT THE SAME TIME AS A FINANCING STATEMENT AND is  sufficient  only
if it satisfies subsection (a) and also:
       (1) [if  not  filed  simultaneously  with  the  initial financing
           statement,] identifies, by its file number[, the initial] ANY
           PREVIOUSLY FILED financing statement AND COOPERATIVE ADDENDUM
           to which the addendum relates;
       (2) indicates the street address of the cooperative unit;
       (3) indicates  the  county  in  which  the  cooperative  unit  is
           located;
       (4) indicates the city, town, or village in which the cooperative
           unit is located;
       (5) indicates  the  real property tax designation associated with
           the real property in which the cooperative unit is located as
           assigned by the local real property tax assessing  authority;
           [and]

S. 6610--A                         47                         A. 9710--A

       (6) indicates the name of the cooperative organization, AND
       (7) SPECIFIES THE AMOUNT OF PRINCIPAL DEBT THAT IS SECURED BY THE
           SECURITY  AGREEMENT  EVIDENCED BY THE FINANCING STATEMENT AND
           WHETHER THE DEBT IS FOR THE PURPOSE OF THE  INITIAL  PURCHASE
           OF THE COOPERATIVE INTEREST OR SUPPLEMENTAL FINANCING.
  S  4.  Section  9--601  of  the  uniform commercial code is amended by
adding a new subsection (h) to read as follows:
  (H) SECURITY INTEREST PERFECTED BY FINANCIAL STATEMENT.  NOTWITHSTAND-
ING ANY PROVISION OF LAW TO THE CONTRARY, IF A SECURED PARTY'S  SECURITY
INTEREST  IS  COLLATERALIZED  BY  THE  SHARES OF STOCK AND A PROPRIETARY
LEASEHOLD OR EITHER OF THE FOREGOING FROM A COOPERATIVE ORGANIZATION AND
THAT SECURITY INTEREST MAY BE PERFECTED ONLY BY THE FILING OF  A  FINAN-
CIAL STATEMENT UNDER SECTION 9--310(D) OF THIS ARTICLE, THEN NO ENFORCE-
MENT PROCEDURES SHALL BE AVAILABLE UNTIL SUCH TAX IS PAID.
  S  5.  This  act shall take effect on the first day of the third month
after it shall have become a law and shall apply to financing statements
filed on or after such date.

                                 PART Q

  Section 1. Subparagraph (E)  of  paragraph  1  of  subsection  (e)  of
section  606  of  the  tax law, as amended by chapter 105 of the laws of
2006, is amended to read as follows:
  (E) "Qualifying real property taxes" means all  real  property  taxes,
special  ad  valorem levies and special assessments, exclusive of penal-
ties and interest, levied on the residence of a qualified  taxpayer  and
paid  during  the taxable year [less the credit claimed under subsection
(n-1) of this section]. In addition, for taxable years  beginning  after
December thirty-first, nineteen hundred eighty-four, a qualified taxpay-
er  may  elect  to  include  any  additional amount that would have been
levied in the absence of an exemption from real property taxation pursu-
ant to section four hundred sixty-seven of the real property tax law. If
tenant-stockholders in a cooperative housing corporation  have  met  the
requirements of section two hundred sixteen of the internal revenue code
by  which they are allowed a deduction for real estate taxes, the amount
of taxes so allowable, or which would be allowable if the  taxpayer  had
filed  returns on a cash basis, shall be qualifying real property taxes.
If a residence is owned by two or more individuals as joint  tenants  or
tenants  in  common, and one or more than one individual is not a member
of the household, qualifying real property taxes is that  part  of  such
taxes  on  the  residence which reflects the ownership percentage of the
qualified taxpayer and members of his household. If a  residence  is  an
integral  part of a larger unit, qualifying real property taxes shall be
limited to that amount of such taxes paid as may  be  reasonably  appor-
tioned  to  such residence. If a household owns and occupies two or more
residences during different periods in the same taxable year, qualifying
real property taxes shall be the sum of  the  prorated  qualifying  real
property  taxes  attributable  to  the household during the periods such
household occupies each of such residences. If the  household  owns  and
occupies  a residence for part of the taxable year and rents a residence
for part of the same taxable year, it may include both the proration  of
qualifying real property taxes on the residence owned and the real prop-
erty  tax equivalent with respect to the months the residence is rented.
Provided, however,  for  purposes  of  the  credit  allowed  under  this
subsection,  qualifying  real property taxes may be included by a quali-
fied taxpayer only to the extent that such taxpayer  or  the  spouse  of

S. 6610--A                         48                         A. 9710--A

such  taxpayer  occupying  such  residence for six months or more of the
taxable year owns or has owned the residence and paid such taxes.
  S  2. Section 606 of the tax law is amended by adding a new subsection
(e-2) to read as follows:
  (E-2) SCHOOL TAX CIRCUIT  BREAKER  CREDIT.  1.  DEFINITIONS.  FOR  THE
PURPOSES OF THIS SUBSECTION:
  (A)  "QUALIFIED  TAXPAYER"  MEANS  A  RESIDENT INDIVIDUAL WHO OWNS THE
RESIDENTIAL REAL PROPERTY IN WHICH HE OR SHE RESIDES, AND HAS USED  SUCH
RESIDENTIAL  REAL  PROPERTY AS HIS OR HER PRIMARY RESIDENCE FOR NOT LESS
THAN SIX MONTHS OF THE TAXABLE YEAR.
  (B) "HOUSEHOLD" OR "MEMBERS OF THE  HOUSEHOLD"  SHALL  HAVE  THE  SAME
MEANING  AS SET FORTH IN SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION
(E) OF THIS SECTION.
  (C) "HOUSEHOLD GROSS INCOME" SHALL HAVE THE SAME MEANING AS SET  FORTH
IN  SUBPARAGRAPH  (C) OF PARAGRAPH ONE OF SUBSECTION (E) OF THIS SECTION
BUT  SHALL  BE  DECREASED  BY  MODIFICATIONS  IN   PARAGRAPHS   SIXTEEN,
TWENTY-TWO  AND  THIRTY-SEVEN  OF  SUBSECTION  (C) AND SUBSECTION (L) OF
SECTION SIX HUNDRED TWELVE OF THIS ARTICLE; PROVIDED HOWEVER,  THAT,  IN
CALCULATING HOUSEHOLD GROSS INCOME, THE AMOUNT OF ANY LOSS FROM EACH THE
FOLLOWING  CATEGORIES  OR ITEMS DEDUCTED IN DETERMINING FEDERAL ADJUSTED
GROSS INCOME SHALL NOT EXCEED THREE THOUSAND DOLLARS:
  (I) PARTNERSHIPS AND S CORPORATIONS,
  (II) RENTAL REAL ESTATE AND ROYALTIES,
  (III) BUSINESS,
  (IV) FARMING,
  (V) NET OPERATING LOSS, AND
  (VI) REAL ESTATE MORTGAGE INVESTMENT CONDUITS.
  (D) "RESIDENTIAL REAL PROPERTY" MEANS A DWELLING IN THIS STATE,  OWNED
BY  A  QUALIFIED TAXPAYER AND USED BY THE TAXPAYER AS HIS OR HER PRIMARY
RESIDENCE, AND SO MUCH OF THE LAND ABUTTING IT AS IS  REASONABLY  NECES-
SARY  FOR  USE OF THE DWELLING AS A HOME, AND MAY CONSIST OF A PART OF A
MULTI-DWELLING OR MULTI-PURPOSE  BUILDING  INCLUDING  A  COOPERATIVE  OR
CONDOMINIUM,  BUT  NOT A RENTED DWELLING OR RENTAL UNITS WITHIN A SINGLE
DWELLING. RESIDENCE INCLUDES A TRAILER OR MOBILE HOME, USED  EXCLUSIVELY
FOR  RESIDENTIAL PURPOSES AND DEFINED AS REAL PROPERTY PURSUANT TO PARA-
GRAPH (G) OF SUBDIVISION TWELVE OF SECTION ONE HUNDRED TWO OF  THE  REAL
PROPERTY TAX LAW.
  (E)  "NET  SCHOOL TAXES" MEANS THE SCHOOL TAXES LEVIED AND PAID ON THE
RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED BY THE  QUALIFIED  TAXPAYER
AFTER  ANY EXEMPTION OR ABATEMENT RECEIVED PURSUANT TO THE REAL PROPERTY
TAX LAW.
  2. CREDIT. (A) SUBJECT IN EACH YEAR TO THE AVAILABILITY OF  MONEYS  IN
THE  PROPERTY  TAX  CIRCUIT  BREAKER RESERVE FUND ESTABLISHED BY SECTION
NINETY-TWO-GG OF THE STATE FINANCE LAW, A QUALIFIED  TAXPAYER  SHALL  BE
ALLOWED  A CREDIT AGAINST THE TAXES IMPOSED BY THIS ARTICLE EQUAL TO THE
EXCESS AMOUNT OF NET SCHOOL TAXES  PAID  OVER  THE  MAXIMUM  SCHOOL  TAX
AMOUNT  APPLICABLE TO HIM OR HER AS SET FORTH IN PARAGRAPH THREE OF THIS
SUBSECTION, MULTIPLIED BY A FIXED PERCENTAGE, THAT SHALL CAUSE, AS NEAR-
LY AS POSSIBLE THE FULL UTILIZATION OF  THE  MONEYS  AVAILABLE  IN  SUCH
RESERVE  FUND.  SUCH FIXED PERCENTAGE SHALL BE DETERMINED BY THE COMMIS-
SIONER IN CONSULTATION WITH THE DIRECTOR OF THE BUDGET FOR EACH SUBPARA-
GRAPH OF PARAGRAPH THREE OF THIS SUBSECTION NO LATER THAN JUNE THIRTIETH
EACH YEAR. NO SUCH CREDIT SHALL BE ALLOWED IF THE HOUSEHOLD GROSS INCOME
OF A QUALIFIED TAXPAYER RESIDING IN THE CITY OF  NEW  YORK,  OR  NASSAU,
SUFFOLK,  ROCKLAND,  WESTCHESTER,  PUTNAM,  ORANGE  OR  DUTCHESS  COUNTY
EXCEEDS THREE HUNDRED THOUSAND  DOLLARS,  AND  IF  THE  HOUSEHOLD  GROSS

S. 6610--A                         49                         A. 9710--A

INCOME OF A QUALIFIED TAXPAYER RESIDING IN ANY OTHER COUNTY OF THE STATE
EXCEEDS  TWO HUNDRED THOUSAND DOLLARS. IN TWO THOUSAND TWELVE AND THERE-
AFTER, THE HOUSEHOLD GROSS  INCOME  LIMITS  SPECIFIED  IN  THE  PREVIOUS
SENTENCE  SHALL  BE  INCREASED  BY AN AMOUNT EQUAL TO (I) SUCH HOUSEHOLD
GROSS INCOME LIMIT, MULTIPLIED BY (II) THE RATE OF INFLATION  AS  DETER-
MINED  UNDER  SUBPARAGRAPH (F) OF PARAGRAPH THREE OF THIS SUBSECTION FOR
THAT YEAR. IF ANY INCREASE IS NOT A MULTIPLE  OF  ONE  HUNDRED  DOLLARS,
SUCH  INCREASE  SHALL  BE ROUNDED TO THE NEAREST MULTIPLE OF ONE HUNDRED
DOLLARS.
  (B) (I) FOR TAX YEARS TWO THOUSAND TWELVE AND THEREAFTER, THE VALUE OF
THE CREDIT SHALL BE MULTIPLIED BY AN ADJUSTMENT FACTOR, WHICH IS A FRAC-
TION THE NUMERATOR OF WHICH IS THE CHANGE IN THE COST  OF  LIVING  SINCE
TWO  THOUSAND  ELEVEN, AND THE DENOMINATOR OF WHICH IS THE CHANGE IN THE
SCHOOL DISTRICT TAX LEVY PER PUPIL SINCE TWO THOUSAND ELEVEN.   A  SEPA-
RATE ADJUSTMENT FACTOR SHALL BE DETERMINED FOR EACH SCHOOL DISTRICT.
  (II)  THE  NUMERATOR OF THE ADJUSTMENT FACTOR SHALL BE COMPUTED AS THE
PRODUCT OF THE GROSS APPLICABLE RATES OF INFLATION FOR ALL YEARS BETWEEN
TWO THOUSAND ELEVEN AND THE CURRENT YEAR WHERE:
  THE GROSS APPLICABLE RATE OF INFLATION IS OBTAINED  BY  COMPUTING  THE
ANNUAL  RATE  OF  INFLATION AND TAKING THE LESSER OF FOUR PERCENT OR 1.2
TIMES THE ANNUAL RATE OF INFLATION AND ADDING ONE. FOR PURPOSES OF  THIS
PARAGRAPH, THE ANNUAL RATE OF INFLATION SHALL BE THE PERCENTAGE (IF ANY)
BY  WHICH  THE  CONSUMER  PRICE INDEX FOR THE IMMEDIATELY PRECEDING YEAR
EXCEEDS THE CONSUMER PRICE INDEX FOR THE PRIOR YEAR. THE CONSUMER  PRICE
INDEX  FOR  ANY YEAR SHALL BE THE AVERAGE OF THE CONSUMER PRICE INDEX AS
OF THE SECOND QUARTER OF THAT YEAR.  THE  TERM  "CONSUMER  PRICE  INDEX"
MEANS THE CONSUMER PRICE INDEX FOR URBAN WAGE EARNERS AND CLERICAL WORK-
ERS  (CPI-W)  PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU
OF LABOR STATISTICS.
  (III) THE DENOMINATOR OF THE ADJUSTMENT FACTOR SHALL  BE  COMPUTED  AS
ONE  PLUS THE PERCENTAGE BY WHICH THE PER PUPIL TAX LEVY FOR THE CURRENT
SCHOOL YEAR EXCEEDS THE PER PUPIL TAX LEVY FOR THE TWO THOUSAND TEN--TWO
THOUSAND ELEVEN SCHOOL YEAR.
  (IV) FOR PURPOSES OF THIS PARAGRAPH, THE PER PUPIL TAX  LEVY  FOR  ANY
SCHOOL YEAR SHALL BE CALCULATED AS FOLLOWS:
  (I) DETERMINE THE TOTAL SCHOOL TAX LEVY IN THE SCHOOL DISTRICT FOR THE
CURRENT  SCHOOL  YEAR,  AS  CERTIFIED  TO  THE  OFFICE  OF REAL PROPERTY
SERVICES BY THE OFFICIAL WHO COMPUTES TAX RATES FOR THE SCHOOL  DISTRICT
BY JANUARY THIRTY-FIRST OF THAT SCHOOL YEAR.
  (II) DIVIDE THE AMOUNT CERTIFIED IN CLAUSE (I) OF THIS SUBPARAGRAPH BY
THE  RESIDENT  PUBLIC SCHOOL DISTRICT ENROLLMENT FOR THE CURRENT YEAR AS
DEFINED IN PARAGRAPH N OF SUBDIVISION ONE OF SECTION THIRTY-SIX  HUNDRED
TWO  OF  THE  EDUCATION  LAW,  BASED  ON AN ELECTRONIC DATA FILE USED TO
PRODUCE THE SCHOOL AID COMPUTER LISTING PRODUCED BY THE COMMISSIONER  ON
NOVEMBER  FIFTEENTH, OR SUCH ALTERNATIVE DATE AS MAY BE REQUESTED BY THE
DIRECTOR OF THE BUDGET FOR THE PURPOSE OF PREPARATION OF  THE  EXECUTIVE
BUDGET,  PURSUANT  TO  PARAGRAPH  B OF SUBDIVISION TWENTY-ONE OF SECTION
THREE HUNDRED FIVE OF THE EDUCATION LAW, AS CERTIFIED TO THE  DEPARTMENT
BY THE STATE EDUCATION DEPARTMENT BY JANUARY THIRTY-FIRST OF THAT SCHOOL
YEAR.
  3.  MAXIMUM  SCHOOL TAX.   (A) IF THE AMOUNT AVAILABLE IN THE PROPERTY
TAX CIRCUIT BREAKER  RESERVE  FUND  IS  AT  LEAST  ONE  HUNDRED  MILLION
DOLLARS,  BUT  LESS  THAN  OR EQUAL TO FIVE HUNDRED MILLION DOLLARS, THE
CREDIT ALLOWED BY  THIS  SUBPARAGRAPH  SHALL  NOT  EXCEED  TWO  THOUSAND
DOLLARS AND THE MAXIMUM SCHOOL TAX AMOUNT IS AS FOLLOWS:

S. 6610--A                         50                         A. 9710--A

  (I)  IN  THE  CITY  OF  NEW YORK, AND THE COUNTIES OF NASSAU, SUFFOLK,
ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS:
     HOUSEHOLD GROSS INCOME          MAXIMUM SCHOOL TAX AMOUNT
     ONE HUNDRED TWENTY THOUSAND     SIX PERCENT OF THE
     DOLLARS OR LESS                 HOUSEHOLD GROSS INCOME
     MORE THAN ONE HUNDRED           SEVEN PERCENT OF
     TWENTY THOUSAND                 THE HOUSEHOLD
     DOLLARS, BUT                    GROSS INCOME
     LESS THAN OR EQUAL TO
     ONE HUNDRED SEVENTY-FIVE
     THOUSAND DOLLARS

     MORE THAN ONE HUNDRED           EIGHT PERCENT OF
     SEVENTY-FIVE THOUSAND           THE HOUSEHOLD
     DOLLARS, BUT LESS THAN          GROSS INCOME
     OR EQUAL TO THREE HUNDRED
     THOUSAND DOLLARS
  (II) IN ALL OTHER COUNTIES IN THE STATE:
     HOUSEHOLD GROSS                 MAXIMUM SCHOOL TAX AMOUNT
     INCOME

     NINETY THOUSAND                 SIX PERCENT OF THE
     DOLLARS OR LESS                 HOUSEHOLD GROSS INCOME
     MORE THAN NINETY                SEVEN PERCENT OF
     THOUSAND DOLLARS, BUT           THE HOUSEHOLD
     LESS THAN OR EQUAL TO           GROSS INCOME
     ONE HUNDRED FIFTY
     THOUSAND DOLLARS

     MORE THAN ONE HUNDRED           EIGHT PERCENT OF
     FIFTY THOUSAND DOLLARS,         THE HOUSEHOLD
     BUT LESS THAN OR EQUAL          GROSS INCOME
     TO TWO HUNDRED THOUSAND
     DOLLARS
  (B)  IF  THE  AMOUNT  AVAILABLE  IN  THE  PROPERTY TAX CIRCUIT BREAKER
RESERVE FUND IS MORE THAN FIVE HUNDRED MILLION DOLLARS BUT LESS THAN  OR
EQUAL  TO  ONE  BILLION DOLLARS, THE CREDIT ALLOWED BY THIS SUBPARAGRAPH
SHALL NOT EXCEED TWO THOUSAND TWO HUNDRED FIFTY DOLLARS AND THE  MAXIMUM
SCHOOL TAX AMOUNT IS AS FOLLOWS:
  (I)  IN  THE  CITY  OF  NEW YORK, AND THE COUNTIES OF NASSAU, SUFFOLK,
ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS:
     HOUSEHOLD GROSS INCOME          MAXIMUM SCHOOL TAX AMOUNT
     ONE HUNDRED TWENTY THOUSAND     FIVE PERCENT OF THE
     DOLLARS OR LESS                 HOUSEHOLD GROSS INCOME
     MORE THAN ONE HUNDRED           SIX PERCENT OF
     TWENTY THOUSAND                 THE HOUSEHOLD
     DOLLARS, BUT                    GROSS INCOME
     LESS THAN OR EQUAL TO
     ONE HUNDRED SEVENTY-FIVE
     THOUSAND DOLLARS

     MORE THAN ONE HUNDRED           SEVEN PERCENT OF
     SEVENTY-FIVE THOUSAND           THE HOUSEHOLD
     DOLLARS, BUT LESS THAN          GROSS INCOME
     OR EQUAL TO THREE HUNDRED
     THOUSAND DOLLARS

S. 6610--A                         51                         A. 9710--A

  (II) IN ALL OTHER COUNTIES IN THE STATE:

     HOUSEHOLD GROSS                 MAXIMUM SCHOOL TAX AMOUNT
     INCOME
     NINETY THOUSAND                 FIVE PERCENT OF THE
     DOLLARS OR LESS                 HOUSEHOLD GROSS INCOME
     MORE THAN NINETY                SIX PERCENT OF
     THOUSAND DOLLARS, BUT           THE HOUSEHOLD
     LESS THAN OR EQUAL TO           GROSS INCOME
     ONE HUNDRED FIFTY
     THOUSAND DOLLARS

     MORE THAN ONE HUNDRED           SEVEN PERCENT OF
     FIFTY THOUSAND DOLLARS,         THE HOUSEHOLD
     BUT LESS THAN OR EQUAL          GROSS INCOME
     TO TWO HUNDRED THOUSAND
     DOLLARS
  (C)  IF  THE  AMOUNT  AVAILABLE  IN  THE  PROPERTY TAX CIRCUIT BREAKER
RESERVE FUND IS MORE THAN ONE BILLION DOLLARS BUT LESS THAN OR EQUAL  TO
ONE  BILLION  FIVE  HUNDRED  MILLION DOLLARS, THE CREDIT ALLOWED BY THIS
SUBPARAGRAPH SHALL NOT EXCEED TWO THOUSAND TWO HUNDRED FIFTY DOLLARS AND
THE MAXIMUM SCHOOL TAX AMOUNT IS AS FOLLOWS:
  (I) IN THE CITY OF NEW YORK, AND  THE  COUNTIES  OF  NASSAU,  SUFFOLK,
ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS:
     HOUSEHOLD GROSS INCOME          MAXIMUM SCHOOL TAX AMOUNT
     ONE HUNDRED TWENTY THOUSAND     FOUR PERCENT OF THE
     DOLLARS OR LESS                 HOUSEHOLD GROSS INCOME
     MORE THAN ONE HUNDRED           FIVE PERCENT OF
     TWENTY THOUSAND                 THE HOUSEHOLD
     DOLLARS, BUT                    GROSS INCOME
     LESS THAN OR EQUAL TO
     ONE HUNDRED SEVENTY-FIVE
     THOUSAND DOLLARS

     MORE THAN ONE HUNDRED           SIX PERCENT OF
     SEVENTY-FIVE THOUSAND           THE HOUSEHOLD
     DOLLARS, BUT LESS THAN          GROSS INCOME
     OR EQUAL TO THREE HUNDRED
     THOUSAND DOLLARS
  (II) IN ALL OTHER COUNTIES IN THE STATE:

     HOUSEHOLD GROSS                 MAXIMUM SCHOOL TAX AMOUNT
     INCOME

     NINETY THOUSAND                 FOUR PERCENT OF THE
     DOLLARS OR LESS                 HOUSEHOLD GROSS INCOME
     MORE THAN NINETY                FIVE PERCENT OF
     THOUSAND DOLLARS, BUT           THE HOUSEHOLD
     LESS THAN OR EQUAL TO           GROSS INCOME
     ONE HUNDRED FIFTY
     THOUSAND DOLLARS

     MORE THAN ONE HUNDRED           SIX PERCENT OF
     FIFTY THOUSAND DOLLARS,         THE HOUSEHOLD
     BUT LESS THAN OR EQUAL          GROSS INCOME
     TO TWO HUNDRED THOUSAND

S. 6610--A                         52                         A. 9710--A

     DOLLARS
  (D)  IF  THE  AMOUNT  AVAILABLE  IN  THE  PROPERTY TAX CIRCUIT BREAKER
RESERVE FUND IS MORE THAN ONE BILLION FIVE HUNDRED MILLION  DOLLARS  BUT
LESS  THAN  OR  EQUAL TO TWO BILLION DOLLARS, THE CREDIT ALLOWED BY THIS
SUBPARAGRAPH SHALL NOT EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS AND  THE
MAXIMUM SCHOOL TAX AMOUNT IS AS FOLLOWS:
  (I)  IN  THE  CITY  OF  NEW YORK, AND THE COUNTIES OF NASSAU, SUFFOLK,
ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS:
     HOUSEHOLD GROSS INCOME          MAXIMUM SCHOOL TAX AMOUNT
     ONE HUNDRED TWENTY THOUSAND     THREE PERCENT OF THE
     DOLLARS OR LESS                 HOUSEHOLD GROSS INCOME
     MORE THAN ONE HUNDRED           FOUR PERCENT OF
     TWENTY THOUSAND                 THE HOUSEHOLD
     DOLLARS, BUT                    GROSS INCOME
     LESS THAN OR EQUAL TO
     ONE HUNDRED SEVENTY-FIVE
     THOUSAND DOLLARS

     MORE THAN ONE HUNDRED           FIVE PERCENT OF
     SEVENTY-FIVE THOUSAND           THE HOUSEHOLD
     DOLLARS, BUT LESS THAN          GROSS INCOME
     OR EQUAL TO THREE HUNDRED
     THOUSAND DOLLARS
  (II) IN ALL OTHER COUNTIES IN THE STATE:
     HOUSEHOLD GROSS                 MAXIMUM SCHOOL TAX AMOUNT
     INCOME

     NINETY THOUSAND                 THREE PERCENT OF THE
     DOLLARS OR LESS                 HOUSEHOLD GROSS INCOME
     MORE THAN NINETY                FOUR PERCENT OF
     THOUSAND DOLLARS, BUT           THE HOUSEHOLD
     LESS THAN OR EQUAL TO           GROSS INCOME
     ONE HUNDRED FIFTY
     THOUSAND DOLLARS

     MORE THAN ONE HUNDRED           FIVE PERCENT OF
     FIFTY THOUSAND DOLLARS,         THE HOUSEHOLD
     BUT LESS THAN OR EQUAL          GROSS INCOME
     TO TWO HUNDRED THOUSAND
     DOLLARS
  (E) IF THE AMOUNT  AVAILABLE  IN  THE  PROPERTY  TAX  CIRCUIT  BREAKER
RESERVE  FUND  IS  MORE  THAN TWO BILLION DOLLARS, THE CREDIT ALLOWED BY
THIS SUBPARAGRAPH SHALL NOT EXCEED THREE THOUSAND DOLLARS AND THE  MAXI-
MUM SCHOOL TAX AMOUNT IS AS FOLLOWS:
  (I)  IN  THE  CITY  OF  NEW YORK, AND THE COUNTIES OF NASSAU, SUFFOLK,
ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS:
     HOUSEHOLD GROSS INCOME          MAXIMUM SCHOOL TAX AMOUNT
     ONE HUNDRED TWENTY THOUSAND     TWO AND A HALF PERCENT OF THE
     DOLLARS OR LESS                 HOUSEHOLD GROSS INCOME
     MORE THAN ONE HUNDRED           THREE AND A HALF PERCENT OF
     TWENTY THOUSAND                 THE HOUSEHOLD GROSS INCOME
     DOLLARS, BUT
     LESS THAN OR EQUAL TO
     ONE HUNDRED SEVENTY-FIVE
     THOUSAND DOLLARS

S. 6610--A                         53                         A. 9710--A

     MORE THAN ONE HUNDRED           FOUR AND A HALF PERCENT OF
     SEVENTY-FIVE THOUSAND           THE HOUSEHOLD GROSS INCOME
     DOLLARS, BUT LESS THAN
     OR EQUAL TO THREE HUNDRED
     THOUSAND DOLLARS
  (II) IN ALL OTHER COUNTIES IN THE STATE:
     HOUSEHOLD GROSS                 MAXIMUM SCHOOL TAX AMOUNT
     INCOME

     NINETY THOUSAND                 TWO AND A HALF PERCENT OF
     DOLLARS OR LESS                 THE HOUSEHOLD GROSS INCOME
     MORE THAN NINETY                THREE AND A HALF PERCENT OF
     THOUSAND DOLLARS, BUT           THE HOUSEHOLD GROSS INCOME
     LESS THAN OR EQUAL TO
     ONE HUNDRED FIFTY
     THOUSAND DOLLARS

     MORE THAN ONE HUNDRED           FOUR AND A HALF PERCENT OF
     FIFTY THOUSAND DOLLARS,         THE HOUSEHOLD GROSS INCOME
     BUT LESS THAN OR EQUAL
     TO TWO HUNDRED THOUSAND
     DOLLARS
  (F)  FOR  TWO THOUSAND TWELVE AND THEREAFTER, THE THRESHOLDS OF HOUSE-
HOLD GROSS INCOME SET FORTH IN THIS PARAGRAPH SHALL BE INCREASED  BY  AN
AMOUNT EQUAL TO (I) SUCH HOUSEHOLD GROSS INCOME THRESHOLD, MULTIPLIED BY
(II)  THE  RATE  OF  INFLATION  FOR  THAT YEAR. IF ANY INCREASE IS NOT A
MULTIPLE OF ONE HUNDRED DOLLARS, SUCH INCREASE SHALL BE ROUNDED  TO  THE
NEAREST MULTIPLE OF ONE HUNDRED DOLLARS.
THE  RATE  OF  INFLATION  SHALL  BE THE PERCENTAGE (IF ANY) BY WHICH THE
CONSUMER PRICE INDEX FOR THE PRECEDING YEAR, EXCEEDS THE CONSUMER  PRICE
INDEX  FOR  TWO THOUSAND ELEVEN.   THE CONSUMER PRICE INDEX FOR ANY YEAR
SHALL BE THE AVERAGE OF THE CONSUMER PRICE INDEX AS OF THE SECOND  QUAR-
TER  OF  THAT  YEAR.  THE TERM "CONSUMER PRICE INDEX" MEANS THE CONSUMER
PRICE  INDEX  FOR  URBAN  WAGE  EARNERS  AND  CLERICAL  WORKERS  (CPI-W)
PUBLISHED  BY  THE  UNITED  STATES  DEPARTMENT OF LABOR, BUREAU OF LABOR
STATISTICS.
  4. IF THE AMOUNT OF THE CREDIT ALLOWABLE PURSUANT TO  THIS  SUBSECTION
EXCEEDS  A  QUALIFIED  TAXPAYER'S  TAX  FOR  A TAXABLE YEAR, SUCH EXCESS
AMOUNT SHALL BE TREATED AS AN OVERPAYMENT TO BE CREDITED OR REFUNDED  IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE; PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. IF A
QUALIFIED  TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT TO SECTION
SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, SUCH  TAXPAYER  MAY  NEVERTHELESS
RECEIVE AS AN OVERPAYMENT THE FULL AMOUNT OF SUCH CREDIT, WITHOUT INTER-
EST.
  5. NO CREDIT SHALL BE ALLOWED UNDER THIS SUBSECTION:
  (A) TO AN INDIVIDUAL WITH RESPECT TO WHOM A DEDUCTION UNDER SUBSECTION
(C)  OF  SECTION  ONE  HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE CODE IS
ALLOWABLE TO ANOTHER TAXPAYER FOR THE TAXABLE YEAR;
  (B) WITH RESPECT TO RESIDENTIAL REAL PROPERTY THAT IS WHOLLY  EXEMPTED
FROM TAXATION FOR SCHOOL PURPOSES;
  (C) TO AN INDIVIDUAL WHO IS NOT A RESIDENT INDIVIDUAL OF THE STATE FOR
THE ENTIRE TAXABLE YEAR;
  (D)  IF  THE  QUALIFIED  TAXPAYER CLAIMS THE REAL PROPERTY TAX CIRCUIT
BREAKER CREDIT, PURSUANT TO SUBSECTION (E)  OF  THIS  SECTION,  FOR  THE
TAXABLE YEAR; AND

S. 6610--A                         54                         A. 9710--A

  (E) IF THE RESIDENTIAL REAL PROPERTY IS EXCLUDED FROM RECEIVING A STAR
EXEMPTION  UNDER  SUBDIVISION FOUR-A OF SECTION FOUR HUNDRED TWENTY-FIVE
OF THE REAL PROPERTY TAX LAW.
  6. PARAGRAPHS FOUR, FIVE, SIX, EIGHT, NINE, TEN, ELEVEN, TWELVE, THIR-
TEEN  AND FOURTEEN OF SUBSECTION (E) OF THIS SECTION SHALL ALSO APPLY TO
THIS SUBSECTION.
  S 3. The state finance law is amended by adding a new section 92-gg to
read as follows:
  S 92-GG. PROPERTY TAX CIRCUIT BREAKER RESERVE FUND.  1. THERE IS HERE-
BY ESTABLISHED IN THE JOINT CUSTODY OF THE COMPTROLLER AND  THE  COMMIS-
SIONER  OF  TAXATION AND FINANCE A FUND TO BE KNOWN AS THE "PROPERTY TAX
CIRCUIT BREAKER RESERVE  FUND".  SUCH  FUND  SHALL  BE  ESTABLISHED  AND
ACCOUNTED FOR BY THE COMPTROLLER WITHIN THE GENERAL FUND.
  2.  AT  THE  BEGINNING OF EACH FISCAL YEAR, THE DIRECTOR OF THE BUDGET
AND THE COMMISSIONER OF TAXATION AND FINANCE SHALL DETERMINE THE  AMOUNT
OF  CASH  SURPLUS  REMAINING  IN  THE  GENERAL  FUND AT THE CLOSE OF THE
PRECEDING YEAR, AFTER DEPOSITS TO THE TAX STABILIZATION RESERVE FUND AND
RAINY DAY RESERVE FUND. SUCH REMAINING AMOUNT SHALL BE TRANSFERRED  INTO
THE PROPERTY TAX CIRCUIT BREAKER RESERVE FUND.
  3.  SUCH FUND SHALL ALSO CONSIST OF ALL MONEYS TRANSFERRED OR CREDITED
THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW.
  4. MONEYS DEPOSITED IN SUCH FUND SHALL BE USED ONLY TO OFFSET THE COST
OF THE TAX CREDITS PURSUANT TO SUBSECTION (E-2) OF SECTION  SIX  HUNDRED
SIX  OF  THE  TAX LAW. AT THE REQUEST OF THE DIRECTOR OF THE BUDGET, THE
COMPTROLLER SHALL TRANSFER FROM THE PROPERTY TAX CIRCUIT BREAKER RESERVE
FUND TO THE GENERAL FUND AN AMOUNT EQUAL TO THE ESTIMATED  REDUCTION  OF
RECEIPTS  RELATED TO THE TAX CREDIT. SUCH TRANSFERS SHALL OCCUR PURSUANT
TO A SCHEDULE PREPARED BY THE DIRECTOR OF  THE  BUDGET  IN  CONSULTATION
WITH THE COMMISSIONER OF TAXATION AND FINANCE.
  5.  MONEYS  IN  THE  PROPERTY  TAX CIRCUIT BREAKER RESERVE FUND MAY BE
TEMPORARILY LOANED TO THE GENERAL FUND DURING ANY FISCAL YEAR IN  ANTIC-
IPATION  OF  THE  RECEIPT OF REVENUES FROM TAXES, FEES AND OTHER SOURCES
REQUIRED TO BE PAID INTO THE  GENERAL  FUND  DURING  SUCH  FISCAL  YEAR.
MONEYS  SO  TEMPORARILY  LOANED  SHALL BE REPAID IN CASH DURING THE SAME
FISCAL YEAR FROM REVENUES RECEIVED  FROM  SUCH  TAXES,  FEES  AND  OTHER
SOURCES  AS SUCH REVENUES ARE RECEIVED, TO THE EXTENT THAT SUCH REVENUES
ARE NOT NECESSARY FOR CURRENT EXPENDITURES REQUIRED TO BE MADE FROM  THE
GENERAL  FUND.  TEMPORARY  LOANS  PURSUANT  TO THIS SUBDIVISION SHALL BE
WITHOUT INTEREST.
  S 4. Subdivision 2 of section 92-cc of the state finance law, as added
by chapter 1 of the laws of 2007, is amended to read as follows:
  2. Such fund shall have a maximum balance not to  exceed  [three]  TEN
per  centum  of  the aggregate amount projected to be disbursed from the
general fund during the fiscal year immediately following the  then-cur-
rent fiscal year.
  S  5.  The  state finance law is amended by adding a new article 17 to
read as follows:
                               ARTICLE 17
                     ANNUAL SPENDING GROWTH CAP ACT
SECTION 244. DEFINITIONS.
         245. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP.
         246. PROVISIONS REGARDING DECLARATION OF EMERGENCY.
  S 244. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS, UNLESS OTHERWISE SPECIFIED:
  1. "ANNUAL SPENDING GROWTH CAP" SHALL MEAN A PERCENTAGE DETERMINED  BY
ADDING  THE  INFLATION RATES FROM EACH OF THE THREE CALENDAR YEARS IMME-

S. 6610--A                         55                         A. 9710--A

DIATELY PRIOR TO THE COMMENCEMENT OF A GIVEN FISCAL YEAR AND THEN DIVID-
ING THAT SUM BY THREE.
  2. "STATE OPERATING FUNDS SPENDING" SHALL MEAN ANNUAL DISBURSEMENTS OF
ALL GOVERNMENTAL FUND TYPES INCLUDED IN THE CASH-BASIS FINANCIAL PLAN OF
THE  STATE,  EXCLUDING  DISBURSEMENTS  FROM  FEDERAL  FUNDS  AND CAPITAL
PROJECT FUNDS.
  3.  "INFLATION  RATE"  SHALL  MEAN  THE  PERCENTAGE  CHANGE   IN   THE
TWELVE-MONTH AVERAGE OF THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS
AS  PUBLISHED  BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR
STATISTICS OR ANY  SUCCESSOR  AGENCY  FOR  A  GIVEN  CALENDAR  YEAR,  AS
COMPARED TO THE PRIOR CALENDAR YEAR.
  4.  "EXECUTIVE BUDGET" SHALL MEAN THE BUDGET SUBMITTED ANNUALLY BY THE
GOVERNOR PURSUANT TO SECTION ONE OF ARTICLE VII OF THE  STATE  CONSTITU-
TION.
  5.  "STATE  BUDGET AS ENACTED" SHALL MEAN THE BUDGET ACTED UPON BY THE
LEGISLATURE IN A GIVEN FISCAL YEAR, AS SUBJECT TO SECTION FOUR OF  ARTI-
CLE VII OF THE STATE CONSTITUTION AND SECTION SEVEN OF ARTICLE IV OF THE
STATE CONSTITUTION.
  6.  "EMERGENCY" SHALL MEAN AN EXTRAORDINARY, UNFORESEEN, OR UNEXPECTED
OCCURRENCE, OR COMBINATION OF CIRCUMSTANCES, INCLUDING BUT  NOT  LIMITED
TO A NATURAL DISASTER, INVASION, TERRORIST ATTACK, OR ECONOMIC CALAMITY.
  S 245. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP.  1. THERE IS HERE-
BY ESTABLISHED AN ANNUAL SPENDING GROWTH CAP.
  2. THE GOVERNOR SHALL NOT SUBMIT, AND THE LEGISLATURE SHALL NOT ENACT,
ANY BUDGET THAT CONTAINS AN ESTIMATED PERCENTAGE INCREASE OVER THE PRIOR
FISCAL  YEAR  IN STATE OPERATING FUNDS SPENDING WHICH EXCEEDS THE ANNUAL
SPENDING GROWTH CAP.
  3. THE GOVERNOR SHALL CERTIFY IN WRITING THAT ESTIMATED STATE  OPERAT-
ING  FUNDS  SPENDING  IN THE EXECUTIVE BUDGET DOES NOT EXCEED THE ANNUAL
SPENDING GROWTH CAP. IF FINAL INFLATION RATE DATA FOR THE PRIOR CALENDAR
YEAR IS NOT YET AVAILABLE AT THE TIME THE GOVERNOR SUBMITS  HIS  OR  HER
EXECUTIVE  BUDGET, HE OR SHE SHALL FURNISH A REASONABLE ESTIMATE OF SUCH
PRIOR CALENDAR YEAR INFLATION RATE.
  4. THE DIRECTOR OF THE BUDGET SHALL PROVIDE, WITHIN TEN DAYS OF ACTION
BY THE LEGISLATURE UPON THE BUDGET, A DETERMINATION AS TO WHETHER  ESTI-
MATED STATE OPERATING FUNDS SPENDING AS SET FORTH IN THE STATE BUDGET AS
ENACTED EXCEEDS THE ANNUAL SPENDING GROWTH CAP.
  5.  IF  THE  DIRECTOR  OF  THE BUDGET FINDS THAT STATE OPERATING FUNDS
SPENDING AS SET FORTH IN THE STATE BUDGET AS ENACTED EXCEEDS THE  ANNUAL
SPENDING GROWTH CAP, THE GOVERNOR SHALL TAKE CORRECTIVE ACTION TO ENSURE
THAT FUNDING IS LIMITED TO THE AMOUNT OF THE ANNUAL SPENDING CAP.
  S 246. PROVISIONS REGARDING DECLARATION OF EMERGENCY.  1. UPON A FIND-
ING  OF AN EMERGENCY BY THE GOVERNOR, HE OR SHE MAY DECLARE AN EMERGENCY
BY AN EXECUTIVE ORDER WHICH SHALL SET FORTH THE REASONS FOR SUCH  DECLA-
RATION.
  2.  BASED  UPON  SUCH  DECLARATION,  THE  GOVERNOR MAY SUBMIT, AND THE
LEGISLATURE MAY APPROVE BY AN AFFIRMATIVE  VOTE  OF  TWO-THIRDS  OF  THE
MEMBERS ELECTED TO EACH HOUSE, A BUDGET CONTAINING A PERCENTAGE INCREASE
OVER  THE  PRIOR  FISCAL  YEAR  IN  STATE  OPERATING FUNDS SPENDING THAT
EXCEEDS THE ANNUAL SPENDING GROWTH CAP.
  S 6. This act shall take effect immediately; provided,  however,  that
section  two  of this act shall apply to tax years beginning on or after
January 1, 2011 and further provided that section five of this act shall
expire April 1, 2014 when upon such date the provisions of such  section
shall be deemed repealed.

S. 6610--A                         56                         A. 9710--A

                                 PART R

  Section  1.  Section  2  of  the  tax law is amended by adding two new
subdivisions 12 and 13 to read as follows:
  12. AS USED IN THIS CHAPTER, A "STATE RECOGNIZED MARRIAGE" SHALL  MEAN
A  MARRIAGE  RECOGNIZED  BY  NEW  YORK  STATE  LAW, INCLUDING A MARRIAGE
OUTSIDE THE STATE RECOGNIZED UNDER PRINCIPLES OF COMITY.
  13. AS USED IN THIS CHAPTER, "MARRIED," "SPOUSE,"  "HUSBAND,"  "WIFE,"
"WIDOW,"  AND  OTHER  SIMILAR TERMS ENCOMPASS ANY INDIVIDUALS IN A STATE
RECOGNIZED  MARRIAGE,  NOTWITHSTANDING  THE  TREATMENT   AFFORDED   SUCH
MARRIAGE UNDER THE LAWS OF THE UNITED STATES.
  S  2.  The  tax  law  is amended by adding a new section 31 to read as
follows:
  S 31. TREATMENT OF INDIVIDUALS IN ANY STATE RECOGNIZED  MARRIAGE.  (A)
FOR  PURPOSES  OF  THIS  CHAPTER,  INDIVIDUALS  IN  ANY STATE RECOGNIZED
MARRIAGE SHALL BE TREATED AS MARRIED, AND  THEIR  STATUS  AS  "HUSBAND,"
"WIFE,"  "SPOUSE,"  "WIDOW"  OR  OTHER  SIMILAR  TERM INDICATING MARITAL
STATUS AS USED IN THIS CHAPTER SHALL BE THAT OF SIMILARLY-SITUATED INDI-
VIDUALS IN ANY OTHER MARRIAGE RECOGNIZED UNDER  FEDERAL  AND  STATE  TAX
LAW,  NOTWITHSTANDING  THE TREATMENT AFFORDED SUCH INDIVIDUALS UNDER THE
LAWS OF THE UNITED STATES.
  (B) TAX LIABILITY UNDER ARTICLES TWENTY-TWO, TWENTY-SIX, TWENTY-SIX-B,
THIRTY, THIRTY-A, AND THIRTY-B OF THIS CHAPTER SHALL BE COMPUTED FOR ANY
STATE RECOGNIZED MARRIAGE IN THE SAME WAY LIABILITY WOULD BE COMPUTED IN
ANY OTHER MARRIAGE RECOGNIZED UNDER FEDERAL AND STATE TAX LAW.
  S 3. Subsection (b) of section 607 of the tax law, as amended by chap-
ter 760 of the laws of 1992, is amended to read as follows:
  (b) Marital or other status. An individual's marital or  other  status
under section six hundred one, subsection (b) of section six hundred six
and section six hundred fourteen shall be the same as his OR HER marital
or  other  status  for  purposes  of establishing the applicable federal
income tax rates; PROVIDED HOWEVER, THAT INDIVIDUALS IN ANY STATE RECOG-
NIZED MARRIAGE SHALL BE TREATED AS MARRIED  AND  AS  "HUSBAND,"  "WIFE,"
"SPOUSE," "WIDOW" OR OTHER SIMILAR TERM USED IN THIS ARTICLE TO INDICATE
MARITAL STATUS TO THE SAME EXTENT AND IN THE SAME WAY AS ARE INDIVIDUALS
IN ANY OTHER LEGALLY PERFORMED MARRIAGE. IN APPLYING RELEVANT PROVISIONS
OF  THE  LAWS OF THE UNITED STATES TO THIS ARTICLE, THE TERMS "MARRIED,"
"HUSBAND," "WIFE," "SPOUSE," "WIDOW" OR OTHER  SIMILAR  TERM  INDICATING
MARITAL  STATUS  AS  USED IN THIS ARTICLE SHALL INCLUDE ANY STATE RECOG-
NIZED MARRIAGE, NOTWITHSTANDING THE TREATMENT AFFORDED SUCH  INDIVIDUALS
UNDER THE LAWS OF THE UNITED STATES.
  S 4. Subsection (b) of section 651 of the tax law is amended by adding
a new paragraph 8 to read as follows:
  (8) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, AN INDIVIDUAL
IN  A STATE RECOGNIZED MARRIAGE NOT RECOGNIZED BY FEDERAL LAW SHALL FILE
A STATE RETURN USING THE SAME FILING STATUS THAT WOULD HAVE BEEN  AVAIL-
ABLE HAD SUCH MARRIAGE BEEN RECOGNIZED BY FEDERAL LAW.
  S  5.  Subsection  (a)  of  section  951 of the tax law, as amended by
section 1 of part A of chapter 407 of the laws of 1999,  is  amended  to
read as follows:
  (a) Dates. For purposes of this article, any reference to the internal
revenue code means the United States Internal Revenue Code of 1986, with
all amendments enacted on or before July twenty-second, nineteen hundred
ninety-eight,  and, unless specifically provided otherwise in this arti-
cle, any reference to December thirty-first, nineteen  hundred  seventy-
six  or  January  first, nineteen hundred seventy-seven contained in the

S. 6610--A                         57                         A. 9710--A

provisions of such code which are applicable to the determination of the
tax imposed by this article shall be read as a reference to June thirti-
eth, nineteen hundred seventy-eight  or  July  first,  nineteen  hundred
seventy-eight,  respectively. Notwithstanding the foregoing, the unified
credit against the estate tax provided in section two  thousand  ten  of
the  internal  revenue  code shall, for purposes of this article, be the
amount allowed by such section  under  the  applicable  federal  law  in
effect on the decedent's date of death. Provided, however, the amount of
such  credit allowable for purposes of this article shall not exceed the
amount allowable as if the federal unified credit did not exceed the tax
due under section two thousand one of the internal  revenue  code  on  a
federal  taxable  estate of one million dollars.  PROVIDED, FURTHER, ANY
ELECTION TO TAKE A QUALIFIED TERMINABLE INTEREST PROPERTY DEDUCTION MADE
ON THE RETURN FILED UNDER THIS  ARTICLE  SHALL  BE  TREATED  AS  IF  THE
ELECTION HAD BEEN MADE ON THE FEDERAL ESTATE TAX RETURN.
  S  6. Section 1-112 of the administrative code of the city of New York
is amended by adding a new subdivision 22 to read as follows:
  22. FOR PURPOSES OF CHAPTER SEVENTEEN OF TITLE ELEVEN  OF  THIS  CODE,
"MARRIED," "SPOUSE," "HUSBAND," "WIFE," "WIDOW," AND OTHER SIMILAR TERMS
ENCOMPASS  ANY  STATE  RECOGNIZED MARRIAGE NOTWITHSTANDING THE TREATMENT
AFFORDED SUCH INDIVIDUALS UNDER THE LAWS OF THE UNITED STATES.
  S 7. Subdivision (b) of section 11-1707 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:
  (b) Marital or other status. An individual's marital or  other  status
under  section  11-1701  and section 11-1714 shall be the same as his OR
HER marital or other status for purposes of establishing the  applicable
federal  income  tax  rates;  PROVIDED  HOWEVER, THAT INDIVIDUALS IN ANY
STATE RECOGNIZED MARRIAGE SHALL BE TREATED AS MARRIED AND AS  "HUSBAND,"
"WIFE,"  "SPOUSE,"  "WIDOW"  OR  OTHER  SIMILAR  TERM INDICATING MARITAL
STATUS AS USED IN THIS CHAPTER TO THE SAME EXTENT AND IN THE SAME WAY AS
IN ANY OTHER MARRIAGE RECOGNIZED UNDER FEDERAL AND STATE TAX  LAW.    IN
APPLYING  RELEVANT  PROVISIONS  OF THE LAWS OF THE UNITED STATES TO THIS
CHAPTER, THE TERMS "MARRIED," "HUSBAND," "WIFE," "SPOUSE,"  "WIDOW"  AND
OTHER  SIMILAR  TERMS  INDICATING MARITAL STATUS AS USED IN THIS CHAPTER
SHALL INCLUDE INDIVIDUALS IN ANY  STATE  RECOGNIZED  MARRIAGE,  NOTWITH-
STANDING  THE  TREATMENT AFFORDED SUCH INDIVIDUALS UNDER THE LAWS OF THE
UNITED STATES.
  S 8. This act shall take effect immediately;  provided  however,  that
sections  three,  four, six and seven of this act shall apply to taxable
years beginning on or after January 1, 2010.

                                 PART S

  Section 1. Clause (I) of subparagraph (i) of paragraph 8  of  subdivi-
sion  (b)  of section 1101 of the tax law, as added by section 1 of part
P-1 of chapter 57 of the laws of 2009, is amended to read as follows:
  (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
the nexus requirement of the United States constitution. For purposes of

S. 6610--A                         58                         A. 9710--A

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.
NOTWITHSTANDING  THE  PROVISIONS  OF  THIS CLAUSE, THE ACTIVITIES IN THE
STATE OF AN AFFILIATED PERSON IN PROVIDING ACCOUNTING OR LEGAL  SERVICES
OR  ADVICE  TO  A  SELLER,  OR  IN DIRECTING THE ACTIVITIES OF A SELLER,
INCLUDING, BUT NOT LIMITED TO,  MAKING  DECISIONS  ABOUT  (A)  STRATEGIC
PLANNING,  (B) MARKETING, (C) INVENTORY, (D) STAFFING, (E) DISTRIBUTION,
OR (F) CASH MANAGEMENT, WILL NOT RESULT IN MAKING THE  SELLER  A  VENDOR
UNDER THIS PARAGRAPH.
  S  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after June 1, 2009  and  shall
apply  to  sales made or uses occurring on or after such date in accord-
ance with the applicable transitional provisions of  sections  1106  and
1217 of the tax law.

                                 PART T

  Section  1.  This  act  shall  be  known and may be cited as the "wine
industry and liquor store revitalization act".
  S 2. Subdivisions 4 and 5 of section  63  of  the  alcoholic  beverage
control  law,  subdivision  4  as  amended by chapter 603 of the laws of
1992, are amended and three new subdivisions 7, 8 and  9  are  added  to
read as follows:
  4.  (A)  No  licensee under this section shall be engaged in any other
business on the licensed premises. The sale  of  lottery  tickets,  when
duly  authorized  and  lawfully conducted, the sale of corkscrews or the
sale of ice or the sale of  publications,  including  prerecorded  video
and/or audio cassette tapes, designed to help educate consumers in their
knowledge  and  appreciation  of  [wine and wine products, as defined in
section three of this chapter] ALCOHOLIC BEVERAGES OR  CONDUCTING  SEMI-
NARS  TO  HELP  EDUCATE CONSUMERS IN THEIR KNOWLEDGE AND APPRECIATION OF
ALCOHOLIC  BEVERAGES,  or  the  sale  of  [non-carbonated,  non-flavored
mineral waters, spring waters and drinking waters or the sale of glasses
designed  for  the consumption of wine] BOTTLED WATER, MIXERS, JUICE AND
SODA, OR THE SALE OF CIGARS, CIGAR ACCESSORIES AND RELATED  PUBLICATIONS
DESIGNED  TO  HELP EDUCATE CONSUMERS IN THEIR KNOWLEDGE AND APPRECIATION
OF CIGAR PRODUCTS, LIGHTERS, NEWSPAPERS OR FOOD AND FOOD PRODUCTS  TYPI-
CALLY  CONSUMED  WITH  ALCOHOLIC BEVERAGES, INCLUDING BUT NOT LIMITED TO
SNACK FOODS AND GOURMET FOODS SUCH AS LOCALLY PRODUCED CHEESES AND FRESH
BREADS, GIFTS, GIFT BAGS  AND  GIFT  BASKETS,  GLASSWARE  AND  DECANTERS
RELATED  TO  THE  CONSUMPTION  OR  STORAGE OF ALCOHOLIC BEVERAGES, racks
designed for the storage of  wine,  and  devices  designed  to  minimize
oxidation  in  bottles  of  wine  which  have  been uncorked[, shall not
constitute engaging in another  business  within  the  meaning  of  this
subdivision].
  (B)  THE INSTALLATION AND OPERATION OF AUTOMATED TELLER MACHINES SHALL
NOT CONSTITUTE ENGAGING IN ANOTHER BUSINESS WITHIN THE MEANING  OF  THIS
SUBDIVISION.   FOR  PURPOSES  OF  THIS  SUBDIVISION,  "AUTOMATED  TELLER
MACHINE" MEANS A DEVICE WHICH IS LINKED TO THE ACCOUNTS AND RECORDS OF A
BANKING INSTITUTION AND WHICH ENABLES CONSUMERS  TO  CARRY  OUT  BANKING
TRANSACTIONS,  INCLUDING,  BUT NOT LIMITED TO, ACCOUNT TRANSFERS, DEPOS-
ITS, CASH WITHDRAWALS, BALANCE INQUIRIES, AND LOAN PAYMENTS.
  5. [Not more than one license shall be] NOTHING IN THIS SECTION  SHALL
BE  CONSTRUED  TO  PROHIBIT  MULTIPLE LICENSES FROM BEING granted to any
person under this section.   PROVIDED, HOWEVER, THAT NO  MORE  THAN  ONE

S. 6610--A                         59                         A. 9710--A

LICENSE  UNDER  THIS SECTION OR SECTION SEVENTY-NINE OF THIS CHAPTER MAY
BE  GRANTED  TO  A  PERSON  HOLDING  A  LICENSE  ISSUED  UNDER   SECTION
FIFTY-FOUR, SECTION FIFTY-FOUR-A OR SECTION SEVENTY-NINE-E OF THIS CHAP-
TER.
  7.    ANY  LICENSE  UNDER THIS SECTION INCLUDES THE PRIVILEGES TO SELL
LIQUOR TO ANY PERSON LICENSED UNDER  THIS  CHAPTER  TO  SELL  LIQUOR  AT
RETAIL  FOR  CONSUMPTION ON THE PREMISES AND WINE TO ANY PERSON LICENSED
UNDER THIS CHAPTER TO SELL WINE AT RETAIL FOR CONSUMPTION ON  THE  PREM-
ISES.  SUCH  SALES SHALL NOT BE SUBJECT TO THE PROVISIONS OF SECTION ONE
HUNDRED ONE-AA OR SECTION ONE HUNDRED ONE-B OF THIS CHAPTER.
  8.  EVERY LICENSEE UNDER THIS SECTION SHALL HAVE AN  INDIVIDUAL  IN  A
POSITION  OF MANAGEMENT AND CONTROL ASSIGNED TO IT WHO HAS BEEN ISSUED A
CERTIFICATE OF COMPLETION FROM AN APPROVED  ALCOHOL  TRAINING  AWARENESS
PROGRAM.
  9.  (A)  EXCEPT  AS  PROVIDED  IN  THIS SUBDIVISION, COMMENCING ON THE
EFFECTIVE DATE OF THIS  SUBDIVISION  NO  ADDITIONAL  LICENSES  SHALL  BE
ISSUED PURSUANT TO THIS SECTION.
  (B)  THE  PROVISIONS  OF  THIS  SUBDIVISION SHALL NOT APPLY TO (I) THE
RENEWAL, TRANSFER OR CONTINUANCE OF A LICENSE PURSUANT TO THIS  CHAPTER;
(II)  AN  APPLICATION  FOR  A LICENSE FILED BEFORE THE EFFECTIVE DATE OF
THIS SUBDIVISION; (III) THE ISSUANCE OF A LICENSE IN ACCORDANCE WITH THE
PROVISIONS OF PARAGRAPH (C) OF THIS SUBDIVISION.
  (C) EACH PERSON HOLDING A LICENSE ISSUED UNDER THIS SECTION  PRIOR  TO
THE EFFECTIVE DATE OF THIS SUBDIVISION SHALL HAVE THE RIGHT TO APPLY FOR
ONE  ADDITIONAL  LICENSE UNDER THIS SECTION. THIS RIGHT MAY BE EXERCISED
BY THE EXISTING LICENSEE OR SOLD BY THE LICENSEE TO ANOTHER PARTY.  SUCH
A  SALE SHALL BE SUBJECT TO SALES AND COMPENSATING USE TAX AS IMPOSED BY
SECTION ELEVEN HUNDRED FIVE OF THE TAX LAW.  THE  PARTY  EXERCISING  THE
RIGHT TO APPLY FOR THE LICENSE MUST FILE AN APPLICATION WITH THE AUTHOR-
ITY AND MEET ALL APPLICABLE RESTRICTIONS AND REQUIREMENTS.
  (D)  THE  AUTHORITY  MAY  SELL, BY AUCTION, THE RIGHT TO APPLY FOR ANY
LICENSE ISSUED UNDER THIS SECTION WHICH IS CANCELED OR REVOKED. PRIOR TO
THE ISSUANCE OF ANY LICENSE, THE PERSON BUYING SUCH RIGHT MUST  FILE  AN
APPLICATION  WITH THE AUTHORITY AND MEET ALL APPLICABLE RESTRICTIONS AND
REQUIREMENTS. THE AMOUNT OF THE SALE  SHALL  BE  SUBJECT  TO  SALES  AND
COMPENSATING  USE  TAX  AS IMPOSED BY SECTION ELEVEN HUNDRED FIVE OF THE
TAX LAW.
  (E) THE AUTHORITY MAY PROMULGATE SUCH RULES AND REGULATIONS AS MAY  BE
NECESSARY TO CARRY OUT THE PROVISIONS OF THIS SUBDIVISION.
  S 3. Subdivision 2 of section 79 of the alcoholic beverage control law
is  amended  and  three new subdivisions 5, 6 and 7 are added to read as
follows:
  2. [Not more than one license shall be] NOTHING IN THIS SECTION  SHALL
BE  CONSTRUED  TO  PROHIBIT  MULTIPLE LICENSES FROM BEING granted to any
person under this section. PROVIDED, HOWEVER,  THAT  NO  MORE  THAN  ONE
LICENSE UNDER THIS SECTION OR SECTION SIXTY-THREE OF THIS CHAPTER MAY BE
GRANTED  TO  A PERSON HOLDING A LICENSE ISSUED UNDER SECTION FIFTY-FOUR,
SECTION FIFTY-FOUR-A OR SECTION SEVENTY-NINE-E OF THIS CHAPTER.
  5.  ANY LICENSE UNDER THIS SECTION INCLUDES  THE  PRIVILEGES  TO  SELL
WINE  TO  ANY  PERSON LICENSED UNDER THIS CHAPTER TO SELL WINE AT RETAIL
FOR CONSUMPTION ON THE PREMISES OR ANY  PERSON  LICENSED  UNDER  SECTION
SEVENTY-NINE-E OF THIS ARTICLE, PROVIDED THAT SUCH GROCERY OR DRUG STORE
WINE  LICENSEE'S  PREMISES  OCCUPIES LESS THAN ONE THOUSAND SQUARE FEET.
SUCH SALES SHALL NOT BE SUBJECT TO THE PROVISIONS OF SECTION ONE HUNDRED
ONE-AA OR SECTION ONE HUNDRED ONE-B OF THIS CHAPTER.

S. 6610--A                         60                         A. 9710--A

  6. EVERY LICENSEE UNDER THIS SECTION SHALL HAVE  AN  INDIVIDUAL  IN  A
POSITION  OF MANAGEMENT AND CONTROL ASSIGNED TO IT WHO HAS BEEN ISSUED A
CERTIFICATE OF COMPLETION FROM AN APPROVED  ALCOHOL  TRAINING  AWARENESS
PROGRAM.
  7.  (A)  EXCEPT AS PROVIDED FOR IN THIS SUBDIVISION, COMMENCING ON THE
EFFECTIVE DATE OF THIS SUBDIVISION,  NO  ADDITIONAL  LICENSES  SHALL  BE
ISSUED PURSUANT TO THIS SECTION.
  (B)  THE  PROVISIONS  OF  THIS  SUBDIVISION SHALL NOT APPLY TO (I) THE
RENEWAL, TRANSFER OR CONTINUANCE OF A LICENSE PURSUANT TO THIS  CHAPTER;
(II)  AN  APPLICATION  FOR  A LICENSE FILED BEFORE THE EFFECTIVE DATE OF
THIS SUBDIVISION; (III) THE ISSUANCE OF A LICENSE IN ACCORDANCE WITH THE
PROVISIONS OF PARAGRAPH (C) OF THIS SUBDIVISION.
  (C) EACH PERSON HOLDING A LICENSE ISSUED UNDER THIS SECTION  PRIOR  TO
THE EFFECTIVE DATE OF THIS SUBDIVISION SHALL HAVE THE RIGHT TO APPLY FOR
ONE  ADDITIONAL  LICENSE UNDER THIS SECTION. THIS RIGHT MAY BE EXERCISED
BY THE EXISTING LICENSEE OR SOLD BY THE LICENSEE TO ANOTHER PARTY.  SUCH
A  SALE SHALL BE SUBJECT TO SALES AND COMPENSATING USE TAX AS IMPOSED BY
SECTION ELEVEN HUNDRED FIVE OF THE TAX LAW.   THE PARTY  EXERCISING  THE
RIGHT TO APPLY FOR THE LICENSE MUST FILE AN APPLICATION WITH THE AUTHOR-
ITY AND MEET ALL APPLICABLE RESTRICTIONS AND REQUIREMENTS.
  (D)  THE  AUTHORITY  MAY  SELL, BY AUCTION, THE RIGHT TO APPLY FOR ANY
LICENSE ISSUED UNDER THIS SECTION WHICH IS CANCELED OR REVOKED. PRIOR TO
THE ISSUANCE OF ANY LICENSE, THE PERSON BUYING SUCH RIGHT MUST  FILE  AN
APPLICATION  WITH THE AUTHORITY AND MEET ALL APPLICABLE RESTRICTIONS AND
REQUIREMENTS. THE AMOUNT OF THE SALE  SHALL  BE  SUBJECT  TO  SALES  AND
COMPENSATING  USE  TAX  AS IMPOSED BY SECTION ELEVEN HUNDRED FIVE OF THE
TAX LAW.
  (E) THE AUTHORITY MAY PROMULGATE SUCH RULES AND REGULATIONS AS MAY  BE
NECESSARY TO CARRY OUT THE PROVISIONS OF THIS SUBDIVISION.
  S  4.  Section  83 of the alcoholic beverage control law is amended by
adding a new subdivision 8 to read as follows:
  8. THE ANNUAL FEE FOR A GROCERY OR DRUG STORE WINE LICENSE PURSUANT TO
SECTION SEVENTY-NINE-E OF THIS ARTICLE SHALL BE  FIVE  HUNDRED  DOLLARS.
WHERE,  HOWEVER,  THE  APPLICANT  IS  THE  HOLDER  OF  TWO  OR MORE SUCH
LICENSES, THE ANNUAL FEE FOR EACH ADDITIONAL LICENSE SHALL BE DOUBLE THE
AMOUNT HEREINABOVE SET FORTH. TEN PERCENT OF THE OVERALL FEES PAID UP TO
ONE MILLION DOLLARS ANNUALLY SHALL BE DEPOSITED TO  THE  NEW  YORK  WINE
INDUSTRY  MARKETING  AND  PROMOTION  ACCOUNT,  ESTABLISHED  PURSUANT  TO
SECTION NINETY-SEVEN-JJJJ OF THE STATE FINANCE LAW.
  S 4-a. The state finance law  is  amended  by  adding  a  new  section
97-jjjj to read as follows:
  S  97-JJJJ. NEW YORK WINE INDUSTRY MARKETING AND PROMOTION ACCOUNT. 1.
THERE IS HEREBY ESTABLISHED IN THE JOINT  CUSTODY  OF  THE  STATE  COMP-
TROLLER  AND  THE  COMMISSIONER OF TAXATION AND FINANCE AN ACCOUNT TO BE
KNOWN AS THE NEW YORK WINE INDUSTRY MARKETING AND PROMOTION ACCOUNT.
  2. SUCH ACCOUNT SHALL CONSIST OF REVENUES  RECEIVED  FROM  GROCERY  OR
DRUG  STORE  WINE  LICENSE FEES PURSUANT TO SUBDIVISION EIGHT OF SECTION
EIGHTY-THREE OF THE ALCOHOLIC BEVERAGE CONTROL LAW.
  3. MONEYS OF THE ACCOUNT, FOLLOWING APPROPRIATION BY THE  LEGISLATURE,
MAY  BE EXPENDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION THREE-A OF
CHAPTER EIGHTY OF THE LAWS OF NINETEEN HUNDRED EIGHTY-FIVE, AS ADDED  BY
CHAPTER  THREE  HUNDRED  THIRTY OF THE LAWS OF TWO THOUSAND FOUR. MONEYS
SHALL BE PAID OUT OF THE ACCOUNT ON THE AUDIT AND WARRANT OF  THE  STATE
COMPTROLLER  ON  VOUCHERS  CERTIFIED  OR APPROVED BY THE COMMISSIONER OF
AGRICULTURE AND MARKETS.

S. 6610--A                         61                         A. 9710--A

  S 5. Subdivision 2-a of section 100 of the alcoholic beverage  control
law,  as  amended by chapter 249 of the laws of 2002, is amended to read
as follows:
  2-a.  No  retailer  shall  employ,  or permit to be employed, or shall
suffer to work, on any premises licensed for retail sale hereunder,  any
person  under the age of eighteen years, as a hostess, waitress, waiter,
or in any other capacity where the duties  of  such  person  require  or
permit  such  person  to  sell,  dispense or handle alcoholic beverages;
except that: (1) any person under the age of eighteen years and employed
by any person holding a grocery or drug  store  beer  license  shall  be
permitted  to  handle and deliver beer and wine products for such licen-
see, (2) any person under the age of eighteen employed as a cashier by a
person holding a grocery or drug store beer license shall  be  permitted
to  record  and  receive payment for beer and wine product sales when in
the presence of and under the direct supervision of  a  person  eighteen
years  of  age or over, (2-a) any person under the age of eighteen years
and employed by a person holding a grocery  store  or  drug  store  beer
license  as  either a cashier or in any other position to which handling
of containers which may have  held  alcoholic  beverages  is  necessary,
shall  be permitted to handle the containers if such have been presented
for redemption in accordance with the provisions of title ten of article
twenty-seven of the environmental conservation law, [and] (3) any person
under the age of eighteen years employed as  a  dishwasher,  busboy,  or
other  such  position  as to which handling of containers which may have
held alcoholic beverages is necessary shall be permitted to do so  under
the  direct  supervision  of a person of legal age to purchase alcoholic
beverages in the state, (4) ANY PERSON UNDER THE AGE OF  EIGHTEEN  YEARS
AND  EMPLOYED  BY  A PERSON HOLDING A GROCERY OR DRUG STORE WINE LICENSE
SHALL BE PERMITTED TO HANDLE AND DELIVER WINE FOR SUCH LICENSEE, AND (5)
ANY PERSON UNDER THE AGE OF EIGHTEEN YEARS  AND  EMPLOYED  BY  A  PERSON
HOLDING  A  GROCERY  OR  DRUG  STORE  WINE LICENSE SHALL BE PERMITTED TO
RECORD AND RECEIVE PAYMENT FOR WINE SALES WHEN IN THE  PRESENCE  OF  AND
UNDER THE DIRECT SUPERVISION OF A PERSON EIGHTEEN YEARS OR OVER.
  S  6.  Section  17 of the alcoholic beverage control law is amended by
adding a new subdivision 8-b to read as follows:
  8-B. ON AND AFTER JANUARY  FIRST,  TWO  THOUSAND  ELEVEN,  THE  REPORT
PROVIDED FOR IN SUBDIVISION EIGHT OF THIS SECTION SHALL INCLUDE INFORMA-
TION  RELATED TO THE NUMBER OF LICENSES APPLIED FOR, RENEWALS SOUGHT AND
THE LENGTH OF TIME REQUIRED FOR THE APPROVAL OR DENIAL  OF  SUCH  RETAIL
LICENSES  AND  RENEWALS  APPLIED  FOR  PURSUANT  TO SUBDIVISION TWO-C OF
SECTION  SIXTY-ONE,  SECTIONS  SIXTY-FOUR,  SEVENTY-SIX,  SEVENTY-SIX-A,
SEVENTY-SIX-C, SEVENTY-SIX-D AND SEVENTY-SIX-F OF THIS CHAPTER.
  S  7.  Paragraphs  (a) and (b) of subdivision 14 of section 105 of the
alcoholic beverage control law, paragraph (a) as amended by section 1 of
part U of chapter 63 of the laws of 2003 and paragraph (b) as amended by
chapter 334 of the laws of 2004, are amended to read as follows:
  (a) No premises licensed to sell liquor and/or wine  for  off-premises
consumption shall be permitted to [remain open] SELL LIQUOR AND/OR WINE:
  (i)  On  Sunday  before  twelve  o'clock  post meridian and after nine
o'clock post meridian.
  (ii) On any day between midnight and eight o'clock antemeridian.
  (iii) On the twenty-fifth day of December, known as Christmas day.
  In any community where daylight saving time is in  effect,  such  time
shall be deemed the standard time for the purpose of this subdivision.
  (b) This subdivision shall only be interpreted to prohibit the sale of
liquor  and/or  wine  for off-premises consumption [when it is closed to

S. 6610--A                         62                         A. 9710--A

the public, provided however, retail licensees may undertake  all  other
activities  allowed  during the course of normal business operations]. A
LICENSEE MAY  ENGAGE  IN  ANY  OTHER  LAWFUL  ACTIVITY  ALLOWED  ON  THE
LICENSEE'S PREMISES, including but not limited to:
  (i)  placing  orders  with  or  taking deliveries from wholesalers AND
MANUFACTURERS;
  (ii) meeting with individuals who have valid solicitors permits issued
by the liquor authority;
  (iii) stocking shelves;
  (iv) filling or building displays; [and]
  (v) rotating product on store shelves; AND
  (VI) THE SALE OF OTHER PRODUCTS, INCLUDING BEER AND WINE PRODUCTS.
  S 8. Section 105 of the alcoholic beverage control law is  amended  by
adding a new subdivision 24 to read as follows:
  24. COOPERATIVE AGREEMENTS BY LICENSEES TO SELL AT RETAIL FOR CONSUMP-
TION  OFF THE PREMISES.  FOR THE PURPOSES OF PURCHASING ONLY, ANY TWO OR
MORE  PERSONS  LICENSED  PURSUANT   TO   SECTIONS   SIXTY-THREE   AND/OR
SEVENTY-NINE  OF  THIS  CHAPTER  MAY  JOIN IN AN AGREEMENT TO MAKE JOINT
PURCHASES OF LIQUOR AND/OR WINE IN LARGER QUANTITIES THAN  MIGHT  OTHER-
WISE  BE PURCHASED; PROVIDED, HOWEVER, THAT ALL SUCH ALCOHOLIC BEVERAGES
PURCHASED PURSUANT TO ANY SUCH AGREEMENT SHALL BE  DISTRIBUTED  TO  NONE
OTHER  THAN A LICENSEE WHO IS A PARTY TO SUCH AGREEMENT. THE COOPERATIVE
AGREEMENTS, AS AUTHORIZED UNDER THIS  SUBDIVISION,  SHALL  BE  VOID  IF,
WITHIN  A  CITY  WITH  A POPULATION OF ONE MILLION OR MORE, THE PREMISES
OPERATING UNDER THE COOPERATIVE AGREEMENTS AUTHORIZED IN  THIS  SUBDIVI-
SION  ARE  LOCATED  MORE THAN ONE MILE FROM ONE ANOTHER. THE COOPERATIVE
AGREEMENTS, AS AUTHORIZED UNDER THIS  SUBDIVISION,  SHALL  BE  VOID  IF,
OUTSIDE OF A CITY WITH A POPULATION OF ONE MILLION OR MORE, THE PREMISES
OPERATING  UNDER  AGREEMENTS  AUTHORIZED IN THIS SUBDIVISION ARE LOCATED
MORE THAN FIFTY MILES FROM ONE ANOTHER.   THE AUTHORITY  MAY  PROMULGATE
SUCH  RULES  AND  REGULATIONS  AS  MAY  BE  NECESSARY  TO  CARRY OUT THE
PROVISIONS OF THIS SUBDIVISION.
  S 9. Subdivision 2 of section 105 of the  alcoholic  beverage  control
law is REPEALED.
  S  10.  Subdivision 7 of section 105 of the alcoholic beverage control
law is REPEALED.
  S 11. The alcoholic beverage control law is amended by  adding  a  new
section 79-e to read as follows:
  S 79-E. GROCERY OR DRUG STORE WINE LICENSE. 1. ANY PERSON MAY APPLY TO
THE  AUTHORITY  FOR A LICENSE TO SELL FROM THE LICENSED PREMISES WINE IN
SEALED CONTAINERS FOR CONSUMPTION OFF SUCH PREMISES.
  2. NO SUCH LICENSE SHALL BE ISSUED, HOWEVER, TO  ANY  PERSON  FOR  ANY
PREMISES  OTHER THAN A GROCERY STORE, AS DEFINED IN SUBDIVISION THIRTEEN
OF SECTION THREE OF THIS CHAPTER, OR A DRUG STORE, AS DEFINED IN  SUBDI-
VISION TWELVE OF SECTION THREE OF THIS CHAPTER.
  3. (A) NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, EXCEPT FOR
GOOD CAUSE SHOWN, THE AUTHORITY SHALL ISSUE A GROCERY OR DRUG STORE WINE
LICENSE  TO  THE HOLDER OF A LICENSE TO SELL BEER AT RETAIL FOR CONSUMP-
TION OFF THE PREMISES PURSUANT TO SECTION FIFTY-FOUR OF THIS CHAPTER, OR
BEER AND WINE PRODUCTS AT RETAIL FOR CONSUMPTION OFF THE PREMISES PURSU-
ANT TO SECTION FIFTY-FOUR-A OF THIS CHAPTER,  AT  THE  REQUEST  OF  SUCH
LICENSEE.
  (B)  FOR THE PURPOSES OF THIS SUBDIVISION, THE PREMISES OF THE GROCERY
OR DRUG STORE WINE LICENSEE SHALL BE THE SAME AS THE  PREMISES  LICENSED
UNDER SECTION FIFTY-FOUR OR FIFTY-FOUR-A OF THIS CHAPTER.

S. 6610--A                         63                         A. 9710--A

  (C)  NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS CHAPTER, ANY LICENSE
ISSUED PURSUANT TO THIS SECTION SHALL RUN CONCURRENTLY WITH THE UNDERLY-
ING LICENSE UNDER SECTION FIFTY-FOUR OR FIFTY-FOUR-A  OF  THIS  CHAPTER,
AND  SHALL  BE  DEEMED  EXPIRED  AT  SUCH TIME AS THE UNDERLYING LICENSE
EXPIRES.
  (D)  WINE  TASTING.  ANY PERSON LICENSED TO SELL WINE PURSUANT TO THIS
ARTICLE SHALL BE PERMITTED TO CONDUCT WINE TASTINGS. WINE TASTINGS WHICH
ARE CONDUCTED UNDER THE AUSPICES OF AN OFFICIAL AGENT OF A FARM  WINERY,
WINERY, WHOLESALER, OR IMPORTER AND WHERE SUCH AGENT IS PHYSICALLY PRES-
ENT AT ALL TIMES DURING THE CONDUCT OF THE TASTING, THEN, IN THAT EVENT,
ANY  LIABILITY  STEMMING  FROM  A  RIGHT OF ACTION RESULTING FROM A WINE
TASTING AS AUTHORIZED PURSUANT TO THIS SECTION, AND IN  ACCORDANCE  WITH
THE  PROVISIONS OF SECTIONS 11-100 AND 11-101 OF THE GENERAL OBLIGATIONS
LAW, SHALL ACCRUE TO THE FARM WINERY, WINERY, WHOLESALER, OR IMPORTER.
  4. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE  AUTHORITY
MAY  ISSUE  A  LICENSE  UNDER THIS SECTION TO THE HOLDER OF A LICENSE TO
SELL WINE AT RETAIL FOR CONSUMPTION OFF THE PREMISES PURSUANT TO SECTION
SEVENTY-NINE OF THIS ARTICLE, PROVIDED THAT: (A) THE LICENSEE MEETS  THE
REQUIREMENTS  OF  SUBDIVISION TWO OF THIS SECTION; AND (B) UPON ISSUANCE
OF A LICENSE, THE LICENSEE UNDER THIS  SECTION  SURRENDERS  THE  LICENSE
CERTIFICATE ISSUED PURSUANT TO SUCH SECTION SEVENTY-NINE.
  5.  SUCH  APPLICATION  SHALL  BE  IN  SUCH FORM AND SHALL CONTAIN SUCH
INFORMATION AS SHALL BE REQUIRED BY THE RULES OF THE AUTHORITY AND SHALL
BE ACCOMPANIED BY A CHECK OR DRAFT IN THE AMOUNT REQUIRED BY THIS  ARTI-
CLE FOR SUCH LICENSE.
  6.  NOTWITHSTANDING  ANY  OTHER PROVISIONS OF THIS CHAPTER, ANY PERSON
RECEIVING A LICENSE PURSUANT TO THIS SECTION SHALL NOT BE SUBJECT TO THE
PROVISIONS OF SUBDIVISION TWO, THREE OR FOUR OF SECTION SEVENTY-NINE  OF
THIS ARTICLE.
  7.  NOTWITHSTANDING  ANY  OTHER PROVISIONS OF THIS CHAPTER, ANY PERSON
RECEIVING A LICENSE PURSUANT TO THIS SECTION SHALL NOT BE SUBJECT TO THE
PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION THREE OF SECTION ONE  HUNDRED
FIVE OF THIS CHAPTER.
  8. (A) A ONE-TIME FRANCHISE FEE SHALL BE PAID BY EACH RETAIL OUTLET TO
THE  STATE LIQUOR AUTHORITY. THIS FRANCHISE FEE IS HEREBY IMPOSED PURSU-
ANT TO THE FOLLOWING SCHEDULE PER LOCATION BASED UPON GROSS SALES IN THE
PREVIOUS YEAR:
ANNUAL SALES                  FRANCHISE FEE PER LOCATION
$0-$249,999                   $1,000
$250,000-$499,999             0.40 OF ONE PERCENT OF TOTAL GROSS SALES
$500,000-$999,999             0.40 OF ONE PERCENT OF TOTAL GROSS SALES
$1,000,000-$2,499,999         0.55 OF ONE PERCENT OF TOTAL GROSS SALES
$2,500,000-$4,999,999         0.55 OF ONE PERCENT OF TOTAL GROSS SALES
$5,000,000-$9,999,999         0.80 OF ONE PERCENT OF TOTAL GROSS SALES
$10,000,000-$24,999,999       1.10 OF ONE PERCENT OF TOTAL GROSS SALES
$25,000,000-$39,999,999       1.50 OF ONE PERCENT OF TOTAL GROSS SALES
$40,000,000 AND GREATER       1.70 OF ONE PERCENT OF TOTAL GROSS SALES
WAREHOUSE STORES              2.0 OF ONE PERCENT OF TOTAL GROSS SALES
  FOR THE PURPOSES OF THIS PARAGRAPH,  "TOTAL  GROSS  SALES"  SHALL  NOT
INCLUDE  SALES  RESULTING FROM THE SALE OF TOBACCO AS DEFINED BY ARTICLE
TWENTY OF THE TAX LAW AND MOTOR FUEL AS DEFINED BY ARTICLE  TWELVE-A  OF
THE  TAX  LAW.  FOR  THE PURPOSES OF THIS PARAGRAPH, NOTWITHSTANDING THE
GROSS SALES OF THE APPLICANT, AN ESTABLISHMENT THAT CHARGES A MEMBERSHIP
FEE TO ITS CUSTOMERS SHALL BE DEEMED A "WAREHOUSE STORE".
  (B) IN THE EVENT AN APPLICANT HAS  BEEN  IN  BUSINESS  FOR  LESS  THAN
TWELVE  MONTHS  PRIOR TO THE FILING OF THE APPLICATION FOR THIS LICENSE,

S. 6610--A                         64                         A. 9710--A

SUCH APPLICANT SHALL, IN ACCORDANCE WITH THE  RULES  OF  THE  AUTHORITY,
REMIT  AN  ESTIMATE  OF  ITS  FRANCHISE FEE BASED ON SQUARE FOOTAGE AT A
LICENSEE'S LOCATION PURSUANT TO THE FOLLOWING SCHEDULE:
SQUARE FOOTAGE LICENSEE'S LOCATION      FRANCHISE FEE PER LOCATION
  0-999                                 $825
  1,000-1,999                           $1,650
  2,000-3,999                           $3,300
  4,000-9,999                           $8,250
  10,000-19,999                         $16,500
  20,000-24,999                         $33,000
  25,000-29,999                         $82,500
  30,000-39,999                         $132,000
  40,000-79,999                         $250,000
  80,000 AND GREATER                    $350,000
  WITHIN  SIXTY DAYS AFTER SUCH LICENSEE SHALL HAVE BEEN IN BUSINESS FOR
TWELVE MONTHS, SUCH LICENSEE SHALL SUBMIT TO THE AUTHORITY,  IN  ACCORD-
ANCE  WITH  THE  RULES  OF THE AUTHORITY, A STATEMENT SHOWING ITS ACTUAL
TOTAL GROSS SALES FOR THE FIRST TWELVE MONTHS OF OPERATION AND THE FRAN-
CHISE FEE DUE PURSUANT TO PARAGRAPH (A)  OF  THIS  SUBDIVISION.  IN  THE
EVENT  THE  FRANCHISE  FEE DETERMINED PURSUANT TO SUCH PARAGRAPH EXCEEDS
THE AMOUNT PAID PURSUANT TO THIS PARAGRAPH,  THE  LICENSEE  SHALL  REMIT
PAYMENT  FOR  THE  BALANCE  OF  THE  REQUIRED  FRANCHISE FEE WITHIN SUCH
SIXTY-DAY PERIOD. FAILURE TO REMIT PAYMENT WITHIN SUCH SIXTY-DAY  PERIOD
SHALL  BE GROUNDS FOR CANCELLATION OR REVOCATION OF SUCH LICENSE. IN THE
EVENT THAT THE FRANCHISE FEE DUE  PURSUANT  TO  PARAGRAPH  (A)  OF  THIS
SUBDIVISION IS LESS THAN THE AMOUNT PAID PURSUANT TO THIS PARAGRAPH, THE
LICENSEE  SHALL  BE ENTITLED TO A REFUND EQUAL TO THE DIFFERENCE BETWEEN
THE FRANCHISE FEE PAID PURSUANT TO THIS PARAGRAPH  AND  THE  AMOUNT  DUE
PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION.
  (C)  NO  LICENSE  SHALL  BE  ISSUED PURSUANT TO THIS SECTION UNTIL THE
FRANCHISE FEE OR ESTIMATED FRANCHISE FEE UNDER THIS SUBDIVISION REQUIRED
BY EITHER PARAGRAPH (A) OR (B) OF THIS  SUBDIVISION  HAS  BEEN  PAID  IN
FULL.
  (D)  THE  FRANCHISE FEE SHALL BE DEPOSITED AND DISPOSED OF IN THE SAME
MANNER AS ANY LICENSE FEE AS PROVIDED IN SECTION ONE HUNDRED TWENTY-FIVE
OF THIS CHAPTER.
  9. ANY PERSON LICENSED TO SELL WINE  PURSUANT  TO  THIS  ARTICLE  THAT
OPERATES  THE  PREMISES  OF THE GROCERY OR DRUG STORE WINE LICENSEE THAT
OCCUPIES LESS THAN ONE THOUSAND  SQUARE  FEET  MAY  PURCHASE,  AGREE  TO
PURCHASE  OR  RECEIVE  ANY  WINE  FROM  A PERSON LICENSED UNDER SECTIONS
SIXTY-THREE AND SEVENTY-NINE OF THIS CHAPTER.
  10. EVERY LICENSEE UNDER THIS SECTION SHALL HAVE AN  INDIVIDUAL  IN  A
POSITION  OF MANAGEMENT AND CONTROL ASSIGNED TO IT WHO HAS BEEN ISSUED A
CERTIFICATE OF COMPLETION FROM AN APPROVED  ALCOHOL  TRAINING  AWARENESS
PROGRAM.
  11.  NOTWITHSTANDING  SUBDIVISION  EIGHT OF THIS SECTION, NO FRANCHISE
FEE SHALL BE REQUIRED FROM AN APPLICANT WHO IS PURCHASING  THE  BUSINESS
OF  A  LICENSEE WHO HAS ALREADY PAID A FRANCHISE FEE, PROVIDED THAT SUCH
APPLICANT CONTINUES  THE  BUSINESS  OPERATION  AT  THE  SAME  GEOGRAPHIC
LOCATION  AS  THE  LICENSEE.  IN  THE  EVENT  THE APPLICANT SUBSEQUENTLY
REMOVES THE BUSINESS TO ANOTHER LOCATION,  PAYMENT  OF  THE  APPROPRIATE
FRANCHISE  FEE  SHALL  BE  REQUIRED PRIOR TO THE APPROVAL OF THE REMOVAL
PURSUANT TO SUBDIVISION THREE OF SECTION NINETY-NINE-D OF THIS CHAPTER.
  12. THE STATE LIQUOR AUTHORITY MAY MAKE SUCH RULES AS IT DEEMS  NECES-
SARY  TO  CARRY  OUT THE PROVISIONS OF THIS SECTION, HOWEVER, SUCH RULES
SHALL NOT BE CONSTRUED TO PLACE ADDITIONAL LIMITATIONS UPON THE  HOLDERS

S. 6610--A                         65                         A. 9710--A

OF  LICENSES  ISSUED  PURSUANT  TO  SECTION SEVENTY-NINE OF THIS ARTICLE
UNRELATED TO THE SALE OF WINE.
  S  12. Subdivision 10 of section 105 of the alcoholic beverage control
law, paragraph (a) as amended by chapter 679 of the  laws  of  1950,  is
amended to read as follows:
  10.  [(a)] Each retail licensee of liquor and/or wine for off-premises
consumption shall have conspicuously displayed within  the  interior  of
the  licensed  premises where sales are made and where it can be readily
inspected by consumers a printed price list of the liquors and/or  wines
offered for sale therein; and no liquor and/or wine shall be sold except
at the price set forth in such list[;
  (b)  No  screen,  blind, curtain, partition, article or thing shall be
permitted in the windows or upon the doors of  such  licensed  premises,
which  shall  prevent  a  clear  view into the interior of such licensed
premises from the sidewalk, at all times; and
  (c) No booth, screen, partition or other obstruction shall be  permit-
ted in the interior of said licensed premises].
  S  13. Section  97-a of the alcoholic beverage control law is REPEALED
and a new section 97-a is added to read as follows:
  S 97-A. TEMPORARY RETAIL PERMIT. 1. THE AUTHORITY IS HEREBY AUTHORIZED
TO ISSUE A TEMPORARY RETAIL PERMIT:
  (A) TO THE TRANSFEREE OF A RETAIL LICENSE TO CONTINUE  THE  OPERATIONS
OF A RETAIL PREMISES DURING THE PERIOD THAT THE TRANSFER APPLICATION FOR
THE LICENSE FROM PERSON TO PERSON AT THE SAME PREMISES IS PENDING; OR
  (B)  TO  THE  APPLICANT FOR A NEW RETAIL LICENSE WHERE THE PROSPECTIVE
LICENSED PREMISES IS LOCATED IN A MUNICIPALITY WITH A POPULATION OF LESS
THAN ONE MILLION DURING THE PERIOD THAT THE APPLICATION IS PENDING.
  2. SUCH A PERMIT MAY BE ISSUED IF ALL OF THE FOLLOWING CONDITIONS  ARE
MET:
  (A)  THE  APPLICANT FOR THE TEMPORARY PERMIT SHALL HAVE FILED WITH THE
AUTHORITY AN APPLICATION FOR A RETAIL LICENSE AT SUCH PREMISES, TOGETHER
WITH ALL REQUIRED FILING AND LICENSE FEES;
  (B) THE APPLICANT SHALL HAVE FILED WITH THE AUTHORITY  AN  APPLICATION
FOR A TEMPORARY RETAIL PERMIT, ACCOMPANIED BY A NONREFUNDABLE FILING FEE
OF  ONE HUNDRED TWENTY-EIGHT DOLLARS FOR ALL RETAIL BEER LICENSES OR SIX
HUNDRED FORTY DOLLARS FOR ALL OTHER RETAIL LICENSES; PROVIDED,  HOWEVER,
THAT  NO  TEMPORARY  RETAIL PERMIT SHALL BE ISSUED TO AN APPLICANT FOR A
LICENSE PURSUANT TO SECTION SEVENTY-NINE-E OF  THIS  CHAPTER  UNTIL  THE
FRANCHISE  FEE  OR  ESTIMATED FRANCHISE FEE REQUIRED BY EITHER PARAGRAPH
(A) OR (B) OF SUBDIVISION EIGHT OF SECTION SEVENTY-NINE-E OF THIS  CHAP-
TER  HAS BEEN PAID IN FULL. IN THE EVENT SUCH APPLICATION IS DENIED, THE
APPLICANT SHALL RECEIVE A REFUND OF THE FRANCHISE FEE OR ESTIMATED FRAN-
CHISE FEE;
  (C) IN THE CASE OF A TRANSFER APPLICATION,  THE  PREMISES  SHALL  HAVE
BEEN  OPERATED  UNDER A RETAIL LICENSE WITHIN THIRTY DAYS OF THE DATE OF
FILING THE APPLICATION FOR A TEMPORARY PERMIT;
  (D)  AT THE TIME THE PERMIT IS ISSUED THE CURRENT LICENSE, IF ANY,  IN
EFFECT  FOR  SAID  PREMISES  SHALL HAVE BEEN SURRENDERED TO, PLACED INTO
SAFEKEEPING WITH, OR OTHERWISE DEEMED ABANDONED BY THE AUTHORITY;
  3. A TEMPORARY RETAIL PERMIT UNDER PARAGRAPH (B) OF SUBDIVISION ONE OF
THIS SECTION MAY NOT BE ISSUED FOR ANY PREMISES THAT IS SUBJECT  TO  THE
PROVISIONS OF SECTION SIXTY-THREE, PARAGRAPH (B) OF SUBDIVISION SEVEN OF
SECTION  SIXTY-FOUR,  SUBPARAGRAPH  (II) OF PARAGRAPH (A) OF SUBDIVISION
SEVEN OF SECTION SIXTY-FOUR-A, SUBPARAGRAPH (II)  OF  PARAGRAPH  (A)  OF
SUBDIVISION ELEVEN OF SECTION SIXTY-FOUR-C, PARAGRAPH (B) OF SUBDIVISION
EIGHT OF SECTION SIXTY-FOUR-D, OR SECTION SEVENTY-NINE OF THIS CHAPTER.

S. 6610--A                         66                         A. 9710--A

  4.  A TEMPORARY RETAIL PERMIT ISSUED BY THE AUTHORITY PURSUANT TO THIS
SECTION SHALL BE FOR A PERIOD NOT TO EXCEED  NINETY  DAYS.  A  TEMPORARY
PERMIT  MAY BE EXTENDED AT THE DISCRETION OF THE AUTHORITY, FOR AN ADDI-
TIONAL THIRTY DAY PERIOD UPON PAYMENT OF AN ADDITIONAL FEE OF SIXTY-FOUR
DOLLARS  FOR  ALL  RETAIL  BEER  LICENSES AND NINETY-SIX DOLLARS FOR ALL
OTHER TEMPORARY PERMITS AND UPON COMPLIANCE WITH ALL CONDITIONS REQUIRED
IN THIS SECTION. THE AUTHORITY MAY, IN ITS DISCRETION, ISSUE  ADDITIONAL
THIRTY DAY EXTENSIONS UPON PAYMENT OF THE APPROPRIATE FEE.
  5.  A  TEMPORARY  RETAIL PERMIT IS A CONDITIONAL PERMIT AND AUTHORIZES
THE HOLDER THEREOF:
  (A) IN THE CASE OF A TRANSFER APPLICATION TO PURCHASE  AND  SELL  SUCH
ALCOHOLIC BEVERAGES AS WOULD BE PERMITTED TO BE PURCHASED AND SOLD UNDER
THE  PRIVILEGES OF THE RETAIL LICENSE FOR WHICH THE TRANSFER APPLICATION
HAS BEEN FILED;
  (B) IN THE CASE OF ALL OTHER RETAIL APPLICATIONS, TO PURCHASE AND SELL
SUCH ALCOHOLIC BEVERAGES AS WOULD BE PERMITTED TO BE PURCHASED AND  SOLD
UNDER THE PRIVILEGES OF THE LICENSE APPLIED FOR; AND
  (C)  TO  SELL  SUCH  ALCOHOLIC BEVERAGES TO CONSUMERS ONLY AND NOT FOR
RESALE.
  6. THE HOLDER OF A TEMPORARY RETAIL PERMIT  SHALL  PURCHASE  ALCOHOLIC
BEVERAGES ONLY BY PAYMENT IN CURRENCY OR CHECK FOR SUCH ALCOHOLIC BEVER-
AGES  ON  OR  BEFORE  THE  DAY  SUCH  ALCOHOLIC BEVERAGES ARE DELIVERED,
PROVIDED, HOWEVER, THAT THE HOLDER OF A TEMPORARY PERMIT ISSUED PURSUANT
TO THIS SECTION WHO ALSO HOLDS ONE OR MORE RETAIL LICENSES AND IS  OPER-
ATING UNDER SUCH RETAIL LICENSE OR LICENSES IN ADDITION TO THE TEMPORARY
RETAIL PERMIT, AND WHO IS NOT DELINQUENT UNDER THE PROVISIONS OF SECTION
ONE  HUNDRED ONE-AA OF THIS CHAPTER AS TO ANY RETAIL LICENSE UNDER WHICH
HE OPERATES, MAY PURCHASE ALCOHOLIC BEVERAGES ON CREDIT UNDER THE TEMPO-
RARY PERMIT.
  7. NOTWITHSTANDING ANY OTHER PROVISION  OF  LAW,  A  TEMPORARY  RETAIL
PERMIT  MAY  BE  SUMMARILY  CANCELLED  OR  SUSPENDED  AT ANY TIME IF THE
AUTHORITY DETERMINES THAT GOOD CAUSE FOR SUCH CANCELLATION OR SUSPENSION
EXISTS.  THE AUTHORITY SHALL PROMPTLY NOTIFY THE HOLDER OF  A  TEMPORARY
RETAIL  PERMIT  IN  WRITING OF SUCH CANCELLATION OR SUSPENSION AND SHALL
SET FORTH THE REASONS FOR SUCH ACTION.
  8. THE APPLICATION FOR A TEMPORARY PERMIT SHALL BE ON SUCH FORM AS THE
AUTHORITY SHALL PRESCRIBE.
  9. APPROVAL OF, OR EXTENSION OF, A TEMPORARY RETAIL PERMIT  SHALL  NOT
BE DEEMED AS AN APPROVAL OF THE RETAIL APPLICATION.
  10. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW TO THE CONTRARY,
THE AUTHORITY MAY PROMULGATE SUCH RULES AND REGULATIONS AS MAY BE NECES-
SARY TO CARRY OUT THE PROVISIONS OF THIS SECTION.
  S  14.  Paragraph  f of subdivision 1 of section 99-b of the alcoholic
beverage control law, as added by chapter 486 of the laws  of  1941,  is
amended to read as follows:
  f.  A  licensee who is liquidating or selling [his] ITS business, or a
former licensee whose  license  [was]  HAS  BEEN  surrendered,  REVOKED,
CANCELLED  or  HAS  expired, to sell [his] ITS entire stock of alcoholic
beverages to other licensees, PROVIDED, HOWEVER,  THAT  NO  SUCH  PERMIT
SHALL BE ISSUED TO A LICENSEE OR FORMER LICENSEE WHO IS DELINQUENT UNDER
THE  PROVISIONS  OF  SECTION  ONE  HUNDRED ONE-AA OR SECTION ONE HUNDRED
ONE-AAA OF THIS CHAPTER.  A  FORMER  LICENSEE  WHOSE  LICENSE  HAS  BEEN
SURRENDERED,  REVOKED,  CANCELLED,  OR HAS EXPIRED, MAY NOT TRANSFER ITS
STOCK OF ALCOHOLIC BEVERAGES TO ANY OTHER PERSON UNLESS IT OBTAINS  SUCH
A PERMIT.

S. 6610--A                         67                         A. 9710--A

  S  15.  Section  3 of the alcoholic beverage control law is amended by
adding a new subdivision 30-a to read as follows:
  30-A.  "TRANSFER" MEANS THE ADMINISTRATIVE PROCESSES INVOLVED IN ISSU-
ING A LICENSE TO A NEW APPLICANT  FOR  AN  EXISTING  LICENSED  BUSINESS.
TRANSFER  APPLICANTS  SHALL BE UNDER CONTRACT WITH THE EXISTING LICENSEE
FOR PURCHASE OF THE EXISTING LICENSED BUSINESS.
  S 16. Subdivision 12 of section 17 of the alcoholic  beverage  control
law,  as  amended by chapter 549 of the laws of 2001, is amended to read
as follows:
  12. To develop and establish minimum  criteria  for  alcohol  training
awareness programs which may be given and administered by schools; other
entities  including  trade  associations whose members are engaged in or
involved in  the  retail  sale  of  alcoholic  beverages;  national  and
regional  franchisors  who  have granted at least five franchises in the
state which are  licensed  to  sell  beer  at  retail  for  off-premises
consumption;  licensees authorized to sell alcoholic beverages at retail
for off-premises consumption operating five or more  licensed  premises;
and  persons  interested, whether as an individual proprietor or partner
or officer or member of a limited liability company,  in  five  or  more
licensees authorized to sell alcoholic beverages at retail for off-prem-
ises  consumption.  The  authority  shall  provide  for  the issuance of
certificates of approval to all  certified  alcohol  training  awareness
programs.  Certificates  of approval may be revoked by the authority for
failure to adhere to the authority's rules and regulations.  Such  rules
and regulations shall afford those who have been issued a certificate of
approval  an  opportunity  for  a  hearing prior to any determination of
whether such certificate should be revoked.
  No licensee shall be required to apply for  any  such  certificate  or
renewal  certificate  and  the licensee may voluntarily surrender such a
certificate or renewal certificate at any time. A fee in the  amount  of
nine  hundred  dollars shall be paid to the authority with each applica-
tion for a certificate of approval or renewal certificate. The authority
shall promptly refund such fee to an  applicant  whose  application  was
denied. Each certificate of approval and renewal thereof shall be issued
for a period of three years. To effectuate the provisions of this subdi-
vision,  the  authority  is  empowered  to require in connection with an
application the submission of such  information  as  the  authority  may
direct;  to  prescribe forms of applications and of all reports which it
deems necessary to be made by any applicant or  certificate  holder;  to
conduct  investigations;  to  require  the maintenance of such books and
records as the authority may direct; to revoke, cancel, or  suspend  for
cause  any  certificate  provided  for  in this subdivision. Each entity
authorized to give and administer an alcohol training awareness  program
shall  issue  certificates  of completion to all licensees and employees
who successfully complete such an approved  alcohol  training  awareness
program.  Such  entity  shall  regularly  transmit  to the authority the
names, addresses and dates  of  attendance  of  all  the  licensees  and
employees  of  licensees  who  successfully complete an approved alcohol
training awareness program.  Such transmittal shall be  in  a  form  and
manner  prescribed by the authority. The authority shall adopt rules and
regulations to effectuate the provisions of this subdivision,  including
the  minimum  requirements  for  the  curriculum  of  each such training
program and the regular ongoing training of  employees  holding  certif-
icates of completion or renewal certificates. Such rules and regulations
shall  include  the  minimum  requirements for a separate curriculum for
licensees and their employees authorized to sell alcoholic beverages  at

S. 6610--A                         68                         A. 9710--A

retail for off-premises consumption, minimum requirements for a separate
curriculum for licensees and their employees authorized to sell alcohol-
ic  beverages  at  retail for on-premises consumption, and the form of a
certificate  of completion or renewal thereof to be issued in respect to
each such type of program. A certificate of completion or renewal there-
of issued by an entity authorized to  give  and  administer  an  alcohol
training awareness program pursuant to this subdivision to licensees and
their  employees  authorized  to  sell alcoholic beverages at retail for
off-premises consumption shall not be invalidated by a change of employ-
ment to another such licensee. A certificate of  completion  or  renewal
thereof issued by an entity authorized to give and administer an alcohol
training awareness program pursuant to this subdivision to licensees and
their  employees  authorized  to  sell alcoholic beverages at retail for
on-premises consumption shall not be invalidated by a change of  employ-
ment  to  another  such licensee.   ATTENDANCE AT ANY COURSE ESTABLISHED
PURSUANT TO THIS SECTION SHALL BE IN PERSON, THROUGH  DISTANCE  LEARNING
METHODS, OR THROUGH AN INTERNET BASED ONLINE PROGRAM.
  S 17.  Paragraph a of subdivision 1 of section 101-aa of the alcoholic
beverage  control  law, as amended by chapter 84 of the laws of 2004, is
amended to read as follows:
  a. "Credit period" means a period  beginning  on  the  date  alcoholic
beverages  are  delivered and ending thirty days thereafter, EXCEPT THAT
WITH REGARD TO LICENSEES LICENSED  UNDER  SECTION  SIXTY-THREE  OF  THIS
CHAPTER  THE  "CREDIT PERIOD" MEANS A PERIOD BEGINNING ON THE DATE ALCO-
HOLIC BEVERAGES ARE DELIVERED AND ENDING SIXTY DAYS THEREAFTER.
  S 18. Paragraph (b) of subdivision 3 of section 101-b of the alcoholic
beverage control law, as amended by section 1 of part E of chapter 56 of
the laws of 2006, is amended to read as follows:
  (b) No brand of liquor or wine shall be sold  to  or  purchased  by  a
retailer  unless a schedule, as provided by this section, is transmitted
to and received by the liquor authority, and is  then  in  effect.  Such
schedule  shall  be  transmitted  to the authority in such form, manner,
medium and format as the authority may  direct;  shall  be  deemed  duly
verified by the person submitting such schedule upon its transmission to
the  authority;  and shall contain, with respect to each item, the exact
brand or trade name, capacity of package, nature of  contents,  age  and
proof where stated on the label, the number of bottles contained in each
case,  the  bottle  and case price to retailers, the net bottle and case
price paid by the seller, which prices, in each instance, shall be indi-
vidual for each item and not in "combination" with any other  item,  the
discounts  for  quantity, if any, and the discounts for time of payment,
if any. PROVIDED HOWEVER THAT,  FOR  THE  PURPOSES  OF  THIS  PARAGRAPH,
DIFFERENT PRODUCTS OR DIFFERENT SIZED BOTTLES FROM THE SAME MANUFACTURER
MAY  BE  COMBINED.  Such  brand  of  liquor or wine shall not be sold to
retailers except at the price and discounts then in effect unless  prior
written  permission of the authority is granted for good cause shown and
for reasons not inconsistent with the  purpose  of  this  chapter.  Such
schedule shall be transmitted by each manufacturer selling such brand to
retailers and by each wholesaler selling such brand to retailers.
  S 19.  Section 101-aa of the alcoholic beverage control law is amended
by adding a new subdivision 3-a to read as follows:
  3-A.  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBDIVISION  THREE OF THIS
SECTION, THE HOLDER OF A LICENSE TO SELL LIQUOR AND WINE AT  RETAIL  FOR
CONSUMPTION  OFF  THE  PREMISES, PURSUANT TO SECTION SIXTY-THREE OF THIS
CHAPTER, OR A LICENSE TO SELL WINE AT RETAIL  FOR  CONSUMPTION  OFF  THE
PREMISES  PURSUANT  TO  SECTION  SEVENTY-NINE OF THIS CHAPTER, WHO IS IN

S. 6610--A                         69                         A. 9710--A

DEFAULT MAY PURCHASE ALCOHOLIC  BEVERAGES  ON  CREDIT  EXCEPT  FROM  THE
MANUFACTURER OR WHOLESALER WHO PLACED SUCH RETAIL LICENSEE IN DEFAULT.
  S 20. Deposit and disposition of revenue. All franchise fees collected
or received by the commissioner under provisions imposed by this article
shall be deposited to the HCRA resources fund as established pursuant to
section ninety-two-dd of the state finance law.
  S 21. This act shall take effect immediately; provided that:
  (a) sections two, three, four, five, seven, eight, sixteen, seventeen,
eighteen,  and nineteen of this act shall take effect on the one hundred
eightieth day after it shall have become a law  and  section  eleven  of
this act shall take effect ninety days after it shall have become a law;
and
  (b) subdivision 9 of section 63 and subdivision 7 of section 79 of the
alcoholic  beverage  control  law, as added by sections two and three of
this act, respectively, shall expire three years  after  such  effective
date  when  upon  such date the provisions of such subdivisions shall be
deemed repealed.

                                 PART U

  Section 1. Subdivision 4 of section 22 of the public housing  law,  as
amended  by  section 1 of part J-1 of chapter 57 of the laws of 2009, 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-four] TWENTY-EIGHT  million  dollars.  The
limitation  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. This act shall take effect immediately.

                                 PART V

  Section 1. Subdivision (d) of 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, as added by section 2 of part Y-1 of  chapter  57  of
the laws of 2009, is amended to read as follows:
  (d) ADDITIONAL POOL 1 - 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 gover-
nor's office for motion picture and television development among taxpay-
ers in accordance with subdivision (a) of this section.
  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 (e) to read as follows:
  (E) ADDITIONAL POOL 2 - THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED IN
SUBDIVISION (A) OF THIS SECTION SHALL BE INCREASED BY AN ADDITIONAL $420
MILLION  IN  2010,  $420  MILLION  IN  2011,  $420 MILLION IN 2012, $420
MILLION IN 2013 AND $420 MILLION IN 2014. 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.  THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVEL-
OPMENT MUST NOTIFY TAXPAYERS OF THEIR ALLOCATION YEAR  AND  INCLUDE  THE
ALLOCATION  YEAR ON THE CERTIFICATE OF TAX CREDIT. TAXPAYERS ELIGIBLE TO
CLAIM A CREDIT MUST REPORT THE ALLOCATION YEAR DIRECTLY ON THEIR  EMPIRE

S. 6610--A                         70                         A. 9710--A

STATE  FILM PRODUCTION CREDIT TAX FORM FOR EACH YEAR A CREDIT IS CLAIMED
AND INCLUDE A COPY OF THE CERTIFICATE WITH THEIR TAX  RETURN.    IN  THE
CASE  OF A QUALIFIED FILM THAT RECEIVES FUNDS FROM ADDITIONAL POOL 2, NO
EMPIRE STATE FILM PRODUCTION CREDIT SHALL BE CLAIMED BEFORE THE LATER OF
(1)  THE  TAXABLE YEAR THE PRODUCTION OF THE QUALIFIED FILM IS COMPLETE,
OR (2) THE TAXABLE YEAR IMMEDIATELY FOLLOWING THE  ALLOCATION  YEAR  FOR
WHICH  THE  FILM  HAS BEEN ALLOCATED CREDIT BY THE GOVERNOR'S OFFICE FOR
MOTION PICTURE AND TELEVISION DEVELOPMENT.
  S 3. Paragraph 1 of subdivision (a) of section 24 of the tax  law,  as
added  by  section  1  of  part  P of chapter 60 of the laws of 2004, is
amended to read as follows:
  (1) Allowance  of  credit.  A  taxpayer  which  is  a  qualified  film
production  company, OR A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY,
or which is a sole proprietor of OR A MEMBER OF A PARTNERSHIP WHICH IS a
qualified film  production  company  OR  A  QUALIFIED  INDEPENDENT  FILM
PRODUCTION COMPANY, and which is subject to tax under articles nine-A or
twenty-two  of this chapter, shall be allowed a credit against such tax,
pursuant to  the  provisions  referenced  in  subdivision  (c)  of  this
section, to be computed as hereinafter provided.
  S  4.  Paragraph 2 of subdivision (a) of section 24 of the tax law, as
amended by section 1 of part Y-1 of chapter 57 of the laws of  2009,  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:  (I)  the  qualified
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  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
performance of services at any film production facility within and with-
out  the state in the production of such qualified film, AND (II) EXCEPT
WITH RESPECT TO A  QUALIFIED  INDEPENDENT  FILM  PRODUCTION  COMPANY  OR
PILOT,  AT LEAST TEN PERCENT OF THE TOTAL PRINCIPAL PHOTOGRAPHY SHOOTING
DAYS SPENT IN THE PRODUCTION OF SUCH QUALIFIED FILM MUST BE SPENT  AT  A
QUALIFIED   FILM   PRODUCTION  FACILITY.    However,  if  the  qualified
production costs (excluding post production costs) which  are  attribut-
able 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  quali-
fied  production  costs  attributable to the use of tangible property or
the performance of services in the production  of  such  qualified  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 facili-
ty 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  quali-
fied film. The credit shall be allowed for the taxable year in which the
production of such qualified film is completed.  HOWEVER, IN THE CASE OF
A  QUALIFIED  FILM THAT RECEIVES FUNDS FROM ADDITIONAL POOL 2, NO CREDIT
SHALL BE CLAIMED BEFORE THE LATER OF (1) THE TAXABLE YEAR THE PRODUCTION
OF THE QUALIFIED FILM IS COMPLETE, OR (2) THE TAXABLE  YEAR  IMMEDIATELY
FOLLOWING  THE  ALLOCATION  YEAR  FOR  WHICH THE FILM HAS BEEN ALLOCATED
CREDIT BY THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVEL-

S. 6610--A                         71                         A. 9710--A

OPMENT. 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 FIRST taxable year in which the [production
of  the  qualified  film  is completed] CREDIT MAY BE CLAIMED 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 FIRST taxable year in which the [production
of  the  qualified  film  is completed] CREDIT MAY BE CLAIMED and in the
next two succeeding taxable years, with one-third of the amount  of  the
credit allowed being claimed in each year.
  S 5. Subdivision (a) of section 24 of the tax law is amended by adding
a new paragraph 4 to read as follows:
  (4)  NOTWITHSTANDING  THE  FOREGOING PROVISIONS OF THIS SUBDIVISION, A
QUALIFIED  FILM  PRODUCTION  COMPANY  OR  QUALIFIED   INDEPENDENT   FILM
PRODUCTION  COMPANY, THAT HAS APPLIED FOR CREDIT UNDER THE PROVISIONS OF
THIS SECTION, AGREES AS A CONDITION FOR THE GRANTING OF THE CREDIT:  (I)
TO INCLUDE IN EACH QUALIFIED FILM DISTRIBUTED BY DVD, OR OTHER MEDIA FOR
THE  SECONDARY  MARKET,  A  NEW  YORK  PROMOTIONAL VIDEO APPROVED BY THE
GOVERNOR'S OFFICE OF MOTION PICTURE AND  TELEVISION  DEVELOPMENT  OR  TO
INCLUDE  IN  THE  END  CREDITS  OF  EACH QUALIFIED FILM "FILMED WITH THE
SUPPORT OF THE NEW YORK STATE GOVERNOR'S OFFICE OF  MOTION  PICTURE  AND
TELEVISION  DEVELOPMENT" AND A LOGO PROVIDED BY THE GOVERNOR'S OFFICE OF
MOTION PICTURE AND TELEVISION DEVELOPMENT, AND (II) TO CERTIFY  THAT  IT
WILL  PURCHASE TAXABLE TANGIBLE PROPERTY AND SERVICES, DEFINED AS QUALI-
FIED PRODUCTION COSTS PURSUANT TO PARAGRAPH ONE OF  SUBDIVISION  (B)  OF
THIS  SECTION, ONLY FROM COMPANIES REGISTERED TO COLLECT AND REMIT STATE
AND LOCAL SALES AND USE TAXES  PURSUANT  TO  ARTICLES  TWENTY-EIGHT  AND
TWENTY-NINE OF THIS CHAPTER.
  S  6.  Paragraph 1 of subdivision (b) of section 24 of the tax law, as
added by section 1 of part P of chapter 60  of  the  laws  of  2004,  is
amended to read as follows:
  (1)  "Qualified  production  costs" means production costs only to the
extent such costs are attributable to the use of  tangible  property  or
the  performance of services within the state directly and predominantly
in the production (including pre-production and post  production)  of  a
qualified film, PROVIDED, HOWEVER, THAT QUALIFIED PRODUCTION COSTS SHALL
NOT  INCLUDE  POST  PRODUCTION  COSTS  UNLESS  THE  PORTION  OF THE POST
PRODUCTION COSTS PAID OR INCURRED THAT IS ATTRIBUTABLE  TO  THE  USE  OF
TANGIBLE  PROPERTY  OR  THE  PERFORMANCE  OF SERVICES IN NEW YORK IN THE
PRODUCTION OF SUCH QUALIFIED FILM EQUALS OR EXCEEDS SEVENTY-FIVE PERCENT
OF THE TOTAL POST PRODUCTION COSTS SPENT WITHIN AND WITHOUT NEW YORK  IN
THE PRODUCTION OF SUCH QUALIFIED FILM.
  S  7.  Paragraph 4 of subdivision (b) of section 24 of the tax law, as
added by section 1 of part P of chapter 60  of  the  laws  of  2004,  is
amended to read as follows:
  (4) "Film production facility" shall mean a building and/or complex of
buildings  and  their improvements and associated back-lot facilities in
which films are or are intended  to  be  regularly  produced  and  which
contain  at  least  one  sound  stage, PROVIDED, HOWEVER, THAT AN ARMORY
OWNED BY THE STATE OR CITY OF NEW YORK LOCATED IN THE CITY OF  NEW  YORK
SHALL  NOT  BE  CONSIDERED  TO BE A "FILM PRODUCTION FACILITY" UNLESS IT
MEETS THE CRITERIA CONTAINED IN PARAGRAPH FIVE OF  THIS  SUBDIVISION  OR
UNLESS  SUCH FACILITY IS USED BY A QUALIFIED INDEPENDENT FILM PRODUCTION
COMPANY.

S. 6610--A                         72                         A. 9710--A

  S 8. Paragraph 5 of subdivision (b) of section 24 of the tax  law,  as
added  by  section  1  of  part  P of chapter 60 of the laws of 2004, is
amended to read as follows:
  (5)  "Qualified film production facility" shall mean a film production
facility in the state, which contains at least one sound stage having  a
minimum  of  seven  thousand square feet of contiguous production space,
PROVIDED,  HOWEVER,  THAT  EXCEPT  WITH  RESPECT  TO  A  QUALIFIED  FILM
PRODUCTION   FACILITY   BEING  USED  BY  A  QUALIFIED  INDEPENDENT  FILM
PRODUCTION COMPANY: (I) A FILM PRODUCTION FACILITY IN THE  CITY  OF  NEW
YORK  MUST  CONTAIN  AT  LEAST ONE SOUND STAGE HAVING A MINIMUM OF SEVEN
THOUSAND SQUARE FEET OF CONTIGUOUS PRODUCTION SPACE THAT IS SOUND  PROOF
WITH A NOISE CRITERIA ("NC") OF 30 OR BETTER, HAS SUFFICIENT HEATING AND
AIR  CONDITIONING  FOR SHOOTING WITHOUT THE NEED FOR SUPPLEMENTAL UNITS,
INCORPORATES A PERMANENT GRID AND SUFFICIENT BUILT-IN  ELECTRIC  SERVICE
FOR  SHOOTING WITHOUT THE NEED FOR GENERATORS, AND IS COLUMN-FREE WITH A
CLEAR HEIGHT OF AT LEAST SIXTEEN FEET UNDER THE PERMANENT GRID; AND (II)
AN ARMORY OWNED BY THE STATE OR CITY OF NEW YORK LOCATED IN THE CITY  OF
NEW  YORK THAT DOES NOT SATISFY THE CRITERIA OF SUBPARAGRAPH (I) OF THIS
PARAGRAPH SHALL BE TREATED AS A QUALIFIED FILM PRODUCTION FACILITY  UPON
CERTIFICATION  BY THE GOVERNOR'S OFFICE OF MOTION PICTURE AND TELEVISION
DEVELOPMENT OF A PETITION SUBMITTED TO THAT OFFICE BY A  QUALIFIED  FILM
PRODUCTION COMPANY ESTABLISHING THAT NO QUALIFIED FILM PRODUCTION FACIL-
ITY  IS AVAILABLE IN THE CITY OF NEW YORK THAT HAS STAGE SPACE AVAILABLE
FOR SHOOTING SUCH COMPANY'S FILM. SUCH PETITION SHALL  BE  SUBMITTED  NO
LATER  THAN  NINETY DAYS PRIOR TO THE START OF PRINCIPAL PHOTOGRAPHY FOR
THE QUALIFIED FILM AND THE GOVERNOR'S OFFICE OF MOTION PICTURE AND TELE-
VISION DEVELOPMENT SHALL HAVE TEN DAYS TO CERTIFY OR  REJECT  THE  PETI-
TION.  A STAGE WILL BE DEEMED UNAVAILABLE IF CONSIDERATION HAS BEEN PAID
FOR ITS USE OR SUCH STAGE IS CURRENTLY UNDER AN AGREEMENT WITH AN OPTION
FOR USE AND, IN EITHER CIRCUMSTANCE, SUCH PERIOD  OF  USE  INCLUDES  THE
PETITIONER'S ESTIMATED START DATE OF PRINCIPAL PHOTOGRAPHY.
  S 9. Subdivision (b) of section 24 of the tax law is amended by adding
a new paragraph 7 to read as follows:
  (7)  "QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY" IS A CORPORATION,
PARTNERSHIP, LIMITED PARTNERSHIP, OR OTHER ENTITY OR INDIVIDUAL, THAT OR
WHO (I) IS PRINCIPALLY ENGAGED IN THE PRODUCTION  OF  A  QUALIFIED  FILM
WITH  A MAXIMUM BUDGET OF FIFTEEN MILLION DOLLARS, AND (II) CONTROLS THE
QUALIFIED FILM DURING PRODUCTION, AND (III) EITHER  IS  NOT  A  PUBLICLY
TRADED  ENTITY, OR NO MORE THAN FIVE PERCENT OF THE BENEFICIAL OWNERSHIP
OF WHICH IS OWNED, DIRECTLY OR INDIRECTLY, BY A PUBLICLY TRADED ENTITY.
  S 10. Section 24 of the tax law is amended by adding a new subdivision
(d) to read as follows:
  (D) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, EMPLOYEES AND OFFI-
CERS OF THE GOVERNOR'S OFFICE OF MOTION PICTURE AND TELEVISION  DEVELOP-
MENT  AND  THE DEPARTMENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND
EXCHANGE INFORMATION REGARDING THE  CREDITS  APPLIED  FOR,  ALLOWED,  OR
CLAIMED  PURSUANT  TO  THIS  SECTION  AND TAXPAYERS WHO ARE APPLYING FOR
CREDITS OR WHO ARE CLAIMING CREDITS, INCLUDING INFORMATION CONTAINED  IN
OR  DERIVED  FROM  CREDIT  CLAIM  FORMS  SUBMITTED TO THE DEPARTMENT AND
APPLICATIONS FOR CREDIT SUBMITTED TO THE  GOVERNOR'S  OFFICE  OF  MOTION
PICTURE AND TELEVISION DEVELOPMENT.
  S  11.  Section 9 of part P of chapter 60 of the laws of 2004 amending
the tax law relating to the empire  state  film  production  credit,  as
amended  by section 5 of part WW-1 of chapter 57 of the laws of 2008, is
amended to read as follows:

S. 6610--A                         73                         A. 9710--A

  S 9. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2004, with respect to  "qualified
production  costs"  paid  or  incurred  on or after such effective date,
providing final applications are approved  on  or  after  the  effective
date,  regardless  of  whether  the initial application relating to such
qualified film was first submitted before such date,  [provided  further
that  this  act  shall  expire  and  be deemed repealed January 1, 2014,
provided further that the expiration and repeal of this  act  shall  not
affect  the  carry  over of any credit allowed pursuant to this act and,
subsequent to the expiration and repeal of this  act,  such  carry  over
credits  shall  be allowed as provided by and pursuant to the provisions
of this act, and] provided further that the IMB credit for energy  taxes
under  subsection  (t-l)  of  section  606  of  the tax law contained in
section three of this act shall expire on the same date as  provided  in
subdivision  (a)  of  section  49 of part Y of chapter 63 of the laws of
2000.
  S 12. This act shall take effect immediately; provided  that  sections
one  through  nine  of  this  act shall apply to applications for credit
awarded under additional pool 2 authorized by section two of this act.

                                 PART W

  Section 1. The economic development law is amended  by  adding  a  new
article 17 to read as follows:
                               ARTICLE 17
                       EXCELSIOR JOBS PROGRAM ACT
SECTION 350. SHORT TITLE.
        351. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION.
        352. DEFINITIONS.
        353. ELIGIBILITY CRITERIA.
        354. APPLICATION AND APPROVAL PROCESS.
        355. EXCELSIOR JOBS PROGRAM CREDIT.
        356. POWERS AND DUTIES OF THE COMMISSIONER.
        357. MAINTENANCE OF RECORDS.
        358. REPORTING.
        359. CAP ON TAX CREDIT.
  S  350.  SHORT TITLE.  THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "EXCELSIOR JOBS PROGRAM ACT".
  S 351. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION.  IT IS HERE-
BY FOUND AND DECLARED THAT NEW YORK STATE NEEDS, AS A MATTER  OF  PUBLIC
POLICY,  TO  CREATE  COMPETITIVE  FINANCIAL INCENTIVES FOR BUSINESSES TO
CREATE JOBS IN THE NEW  ECONOMY.  THE  EXCELSIOR  JOBS  PROGRAM  ACT  IS
CREATED  TO  SUPPORT  THE  GROWTH  OF  THE  STATE'S TRADITIONAL ECONOMIC
PILLARS INCLUDING THE MANUFACTURING  AND  FINANCIAL  INDUSTRIES  AND  TO
ENSURE  THAT NEW YORK EMERGES AS THE LEADER IN THE KNOWLEDGE, TECHNOLOGY
AND INNOVATION BASED ECONOMY. THE PROGRAM WILL ENCOURAGE  THE  EXPANSION
IN AND RELOCATION TO NEW YORK OF BUSINESSES IN GROWTH INDUSTRIES SUCH AS
CLEAN-TECH,   BROADBAND,   INFORMATION  SYSTEMS,  RENEWABLE  ENERGY  AND
BIOTECHNOLOGY.
  THIS LEGISLATION CREATES THE EXCELSIOR JOBS PROGRAM CREDIT, WHICH  HAS
THREE  COMPONENTS:  THE EXCELSIOR JOBS TAX CREDIT, THE EXCELSIOR INVEST-
MENT TAX CREDIT, AND THE EXCELSIOR RESEARCH AND DEVELOPMENT TAX  CREDIT.
THESE  CREDITS  ARE  DESIGNED  TO PROMOTE BUSINESS EXPANSION IN NEW YORK
STATE AND INCREASE JOBS IN THE  NEW  ECONOMY.  AT  THE  SAME  TIME,  THE
PROGRAM  PROTECTS  STATE  TAXPAYERS'  DOLLARS  BY ENSURING THAT NEW YORK

S. 6610--A                         74                         A. 9710--A

PROVIDES TAX BENEFITS ONLY TO BUSINESSES THAT HAVE CREATED THE  PROMISED
JOBS.
  S  352. DEFINITIONS.   1. "CERTIFICATE OF ELIGIBILITY" MEANS THE DOCU-
MENT ISSUED BY THE DEPARTMENT TO AN  APPLICANT  THAT  HAS  COMPLETED  AN
APPLICATION  TO BE ADMITTED INTO THE EXCELSIOR JOBS PROGRAM AND HAS BEEN
ACCEPTED INTO THE PROGRAM BY THE DEPARTMENT. POSSESSION OF A CERTIFICATE
OF ELIGIBILITY DOES NOT BY ITSELF GUARANTEE THE ELIGIBILITY TO CLAIM THE
TAX CREDIT.
  2. "CERTIFICATE OF TAX CREDIT" MEANS THE DOCUMENT ISSUED TO A  PARTIC-
IPANT  BY  THE  DEPARTMENT,  AFTER  THE DEPARTMENT HAS VERIFIED THAT THE
PARTICIPANT HAS CREATED ITS PROJECTED NUMBER OF NET NEW JOBS IN NEW YORK
STATE AND HAS MET THE OTHER ELIGIBILITY CRITERIA IN  THIS  ARTICLE.  THE
CERTIFICATE  SHALL BE ISSUED ANNUALLY IF SUCH CRITERIA ARE SATISFIED AND
SHALL SPECIFY THE EXACT AMOUNT OF EACH  OF  THE  TAX  CREDIT  COMPONENTS
UNDER  THIS  ARTICLE  THAT  A PARTICIPANT MAY CLAIM, PURSUANT TO SECTION
THREE HUNDRED FIFTY-FIVE OF THIS ARTICLE, AND SHALL SPECIFY THE  TAXABLE
YEAR IN WHICH SUCH CREDIT MAY BE CLAIMED.
  3.  "FINANCIAL  SERVICES  DATA  CENTERS OR FINANCIAL SERVICES CUSTOMER
BACK OFFICE  OPERATIONS"  MEANS  OPERATIONS  THAT  MANAGE  THE  DATA  OR
ACCOUNTS  OF  EXISTING  CUSTOMERS  OF  FINANCIAL INSTITUTIONS, INCLUDING
BANKS, OTHER LENDERS, SECURITIES AND COMMODITIES  BROKERS  AND  DEALERS,
INVESTMENT  BANKS,  PORTFOLIO  MANAGERS,  TRUST  OFFICES,  AND INSURANCE
COMPANIES.
  4. "MANUFACTURING" MEANS THE PROCESS OF  WORKING  RAW  MATERIALS  INTO
PRODUCTS  SUITABLE FOR USE OR WHICH GIVES NEW SHAPES, NEW QUALITY OR NEW
COMBINATIONS TO MATTER WHICH HAS ALREADY GONE  THROUGH  SOME  ARTIFICIAL
PROCESS  BY  THE  USE  OF MACHINERY, TOOLS, APPLIANCES, OR OTHER SIMILAR
EQUIPMENT.  "MANUFACTURING" DOES NOT INCLUDE AN OPERATION THAT  INVOLVES
ONLY THE ASSEMBLY OF COMPONENTS, OTHER THAN THE ASSEMBLY OF AUTOMOBILES.
  5. "NET NEW JOBS" MEANS JOBS CREATED IN THIS STATE THAT:
  (A) ARE NEW TO THE STATE;
  (B)  HAVE  NOT  BEEN TRANSFERRED FROM EMPLOYMENT WITH ANOTHER BUSINESS
LOCATED IN THIS STATE INCLUDING FROM A RELATED PERSON IN THIS STATE;
  (C) ARE EITHER FULL-TIME WAGE-PAYING JOBS OR EQUIVALENT TO A FULL-TIME
WAGE-PAYING JOB REQUIRING AT LEAST THIRTY-FIVE HOURS PER WEEK; AND
  (D) ARE FILLED FOR MORE THAN SIX MONTHS.
  6. "PARTICIPANT" MEANS A BUSINESS ENTITY THAT:
  (A) HAS COMPLETED AN APPLICATION PRESCRIBED BY THE  DEPARTMENT  TO  BE
ADMITTED INTO THE PROGRAM;
  (B) HAS BEEN ISSUED A CERTIFICATE OF ELIGIBILITY BY THE DEPARTMENT;
  (C) HAS DEMONSTRATED THAT IT MEETS THE ELIGIBILITY CRITERIA IN SECTION
THREE  HUNDRED  FIFTY-THREE AND SUBDIVISION TWO OF SECTION THREE HUNDRED
FIFTY-FOUR OF THIS ARTICLE; AND
  (D) HAS BEEN CERTIFIED AS A PARTICIPANT BY THE COMMISSIONER.
  7. "PRELIMINARY SCHEDULE OF  BENEFITS"  MEANS  THE  MAXIMUM  AGGREGATE
AMOUNT  OF  EACH  COMPONENT  OF THE TAX CREDIT THAT A PARTICIPANT IN THE
EXCELSIOR JOBS PROGRAM IS ELIGIBLE TO RECEIVE PURSUANT TO THIS  ARTICLE.
THE  SCHEDULE  SHALL INDICATE THE ANNUAL AMOUNT OF EACH COMPONENT OF THE
CREDIT A PARTICIPANT MAY CLAIM IN EACH OF ITS FIVE YEARS OF ELIGIBILITY.
THE PRELIMINARY SCHEDULE OF BENEFITS SHALL BE ISSUED BY  THE  DEPARTMENT
WHEN  THE  DEPARTMENT  APPROVES  THE  APPLICATION FOR ADMISSION INTO THE
PROGRAM. THE COMMISSIONER MAY AMEND THAT  SCHEDULE,  PROVIDED  THAT  THE
COMMISSIONER  COMPLIES  WITH  THE  CREDIT  CAPS IN SECTION THREE HUNDRED
FIFTY-NINE OF THIS ARTICLE.

S. 6610--A                         75                         A. 9710--A

  8. "QUALIFIED INVESTMENT" MEANS AN  INVESTMENT  IN  TANGIBLE  PROPERTY
(INCLUDING  A BUILDING OR A STRUCTURAL COMPONENT OF A BUILDING) OWNED BY
A BUSINESS ENTERPRISE WHICH:
  (A)  IS DEPRECIABLE PURSUANT TO SECTION ONE HUNDRED SIXTY-SEVEN OF THE
INTERNAL REVENUE CODE;
  (B) HAS A USEFUL LIFE OF FOUR YEARS OR MORE;
  (C) IS ACQUIRED BY PURCHASE AS DEFINED IN SECTION ONE  HUNDRED  SEVEN-
TY-NINE (D) OF THE INTERNAL REVENUE CODE;
  (D) HAS A SITUS IN THIS STATE; AND
  (E) IS PLACED IN SERVICE IN THE STATE ON OR AFTER THE DATE THE CERTIF-
ICATE OF ELIGIBILITY IS ISSUED TO THE BUSINESS ENTERPRISE.
  9.  "RELATED PERSON" MEANS A "RELATED PERSON" PURSUANT TO SUBPARAGRAPH
(C) OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION FOUR HUNDRED  SIXTY-
FIVE OF THE INTERNAL REVENUE CODE.
  10.  "RESEARCH  AND DEVELOPMENT EXPENDITURES" MEAN THE EXPENSES OF THE
BUSINESS ENTERPRISE THAT  ARE  QUALIFIED  RESEARCH  EXPENSES  UNDER  THE
FEDERAL  RESEARCH  AND DEVELOPMENT CREDIT UNDER SECTION FORTY-ONE OF THE
INTERNAL REVENUE CODE AND ARE ATTRIBUTABLE TO  ACTIVITIES  CONDUCTED  IN
THE STATE.
  11.  "SCIENTIFIC  RESEARCH  AND DEVELOPMENT" MEANS CONDUCTING RESEARCH
AND EXPERIMENTAL DEVELOPMENT IN  THE  PHYSICAL,  ENGINEERING,  AND  LIFE
SCIENCES,  INCLUDING  BUT NOT LIMITED TO AGRICULTURE, ELECTRONICS, ENVI-
RONMENTAL, BIOLOGY, BOTANY, BIOTECHNOLOGY, COMPUTERS,  CHEMISTRY,  FOOD,
FISHERIES,  FORESTS,  GEOLOGY, HEALTH, MATHEMATICS, MEDICINE, OCEANOGRA-
PHY, PHARMACY, PHYSICS, VETERINARY, AND OTHER ALLIED SUBJECTS.  FOR  THE
PURPOSES  OF  THIS ARTICLE, SCIENTIFIC RESEARCH AND DEVELOPMENT DOES NOT
INCLUDE MEDICAL OR VETERINARY LABORATORY TESTING FACILITIES.
  12. "SOFTWARE  DEVELOPMENT"  MEANS  THE  CREATION  OF  CODED  COMPUTER
INSTRUCTIONS.
  S  353. ELIGIBILITY CRITERIA.  1. TO BE A PARTICIPANT IN THE EXCELSIOR
JOBS PROGRAM, A BUSINESS ENTITY SHALL OPERATE IN NEW YORK STATE PREDOMI-
NANTLY:
  (A) AS A FINANCIAL SERVICES DATA CENTER OR A FINANCIAL  SERVICES  BACK
OFFICE OPERATION;
  (B) IN MANUFACTURING;
  (C) IN SOFTWARE DEVELOPMENT;
  (D) IN SCIENTIFIC RESEARCH AND DEVELOPMENT; OR
  (E)  IN  AN  INDUSTRY  WITH  SIGNIFICANT  POTENTIAL FOR PRIVATE-SECTOR
ECONOMIC GROWTH AND DEVELOPMENT IN NEW YORK STATE AS ESTABLISHED BY  THE
COMMISSIONER IN REGULATIONS PROMULGATED PURSUANT TO THIS ARTICLE.
  2.  A  NOT-FOR-PROFIT BUSINESS ENTITY, A BUSINESS ENTITY WHOSE PRIMARY
FUNCTION IS THE PROVISION OF SERVICES INCLUDING PERSONAL SERVICES, BUSI-
NESS SERVICES, OR THE PROVISION OF  UTILITIES,  AND  A  BUSINESS  ENTITY
ENGAGED  PREDOMINANTLY  IN THE RETAIL OR ENTERTAINMENT INDUSTRY, ARE NOT
ELIGIBLE TO RECEIVE THE TAX CREDIT DESCRIBED IN THIS ARTICLE.
  3. A BUSINESS ENTITY MUST BE IN SUBSTANTIAL COMPLIANCE WITH ALL WORKER
PROTECTION AND ENVIRONMENTAL LAWS AND REGULATIONS. IN ADDITION, A  BUSI-
NESS  ENTITY MAY NOT OWE PAST DUE NEW YORK STATE TAXES OR LOCAL PROPERTY
TAXES.
  4. A BUSINESS ENTITY MUST CREATE THE NET NEW JOBS THAT IT PROJECTED IN
ITS APPLICATION FOR ADMISSION INTO THE PROGRAM  AND  THEN  RETAIN  THOSE
JOBS  IN SUBSEQUENT YEARS IN ORDER TO BE ELIGIBLE TO CLAIM THE EXCELSIOR
JOBS PROGRAM CREDIT.
  S 354. APPLICATION AND APPROVAL PROCESS.   1.  A  BUSINESS  ENTERPRISE
MUST SUBMIT A COMPLETED APPLICATION AS PRESCRIBED BY THE COMMISSIONER.
  2. AS PART OF SUCH APPLICATION, EACH BUSINESS ENTERPRISE MUST:

S. 6610--A                         76                         A. 9710--A

  (A) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
TAX  INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION SHARED AS
A RESULT OF THIS AGREEMENT SHALL NOT  BE  AVAILABLE  FOR  DISCLOSURE  OR
INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW.
  (B)  ALLOW  THE  DEPARTMENT AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS
AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE.
  (C) AGREE TO BE PERMANENTLY DECERTIFIED FROM THE EMPIRE ZONES  PROGRAM
IF  ADMITTED  INTO  THE  EXCELSIOR JOBS PROGRAM, EFFECTIVE FOR THE FIRST
TAXABLE YEAR THAT THE BUSINESS ENTERPRISE MAY CLAIM THE  EXCELSIOR  JOBS
PROGRAM CREDIT AND FOR ALL SUBSEQUENT TAXABLE YEARS.
  (D)  SUBMIT THE PRIOR THREE YEARS OF FEDERAL AND NEW YORK STATE INCOME
OR FRANCHISE TAX RETURNS AND UNEMPLOYMENT INSURANCE QUARTERLY RETURNS TO
THE DEPARTMENT. IF THE BUSINESS ENTITY HAS BEEN SUBJECT TO TAX  IN  THIS
STATE  FOR  LESS  THAN  THREE  YEARS, IT MUST SUBMIT RETURNS FOR ALL THE
YEARS IT HAS BEEN SUBJECT TO TAX.
  (E) PROVIDE THE FOLLOWING INFORMATION TO THE DEPARTMENT:
  (I) A PLAN FOR NO MORE THAN TWO YEARS, OUTLINING THE  CREATION  OF  AT
LEAST FIFTY NET NEW JOBS IN NEW YORK, WITHIN 24 MONTHS OF BEING ACCEPTED
INTO  THE  PROGRAM  AND  THE MAINTENANCE OF THOSE JOBS FOR AT LEAST FIVE
YEARS DURING PARTICIPATION INTO THE  PROGRAM.  SUCH  PLAN  MUST  INCLUDE
DETAILS ON JOB TITLES AND EXPECTED SALARIES;
  (II)  THE  AMOUNT  AND  DESCRIPTION OF PROJECTED QUALIFIED INVESTMENTS
THAT IT PLANS TO MAKE BETWEEN THE TIME IT RECEIVES  ITS  CERTIFICATE  OF
ELIGIBILITY AND THE LAST YEAR IT WOULD BE ALLOWED TO CLAIM THE TAX CRED-
IT; AND
  (III)  AN ESTIMATE OF THE PORTION OF ANY FEDERAL RESEARCH AND DEVELOP-
MENT TAX CREDITS, ATTRIBUTABLE TO RESEARCH  AND  DEVELOPMENT  ACTIVITIES
CONDUCTED  IN NEW YORK STATE, THAT IT ANTICIPATES CLAIMING FOR THE YEARS
IT EXPECTS TO CLAIM THE STATE CREDIT.
  (F) PROVIDE A CLEAR AND DETAILED PRESENTATION OF ALL  RELATED  PERSONS
TO THE APPLICANT TO ASSURE THE DEPARTMENT THAT JOBS ARE NOT BEING SHIFT-
ED WITHIN THE STATE.
  (G)  SUBMIT THE EMPLOYER IDENTIFICATION OR SOCIAL SECURITY NUMBERS FOR
ALL RELATED PERSONS TO THE APPLICANT INCLUDING THOSE OF ANY MEMBERS OF A
LIMITED LIABILITY COMPANY OR PARTNERS IN A PARTNERSHIP.
  (H) CERTIFY, UNDER PENALTY OF  PERJURY,  THAT  IT  IS  IN  SUBSTANTIAL
COMPLIANCE  WITH ALL ENVIRONMENTAL, WORKER PROTECTION, AND LOCAL, STATE,
AND FEDERAL TAX LAWS.
  3. AFTER REVIEWING A BUSINESS ENTERPRISE'S COMPLETED  APPLICATION  AND
DETERMINING  THAT  THE  BUSINESS ENTERPRISE WILL MEET THE CONDITIONS SET
FORTH IN SUBDIVISION TWO OF THIS SECTION, THE DEPARTMENT MAY  ADMIT  THE
APPLICANT  INTO THE PROGRAM AND PROVIDE THE APPLICANT WITH A CERTIFICATE
OF ELIGIBILITY AND A PRELIMINARY SCHEDULE OF BENEFITS BY YEAR  BASED  ON
THE  APPLICANT'S  PROJECTIONS  AS  SET  FORTH  IN  ITS APPLICATION. THIS
PRELIMINARY SCHEDULE OF BENEFITS DELINEATES THE MAXIMUM  POSSIBLE  BENE-
FITS AN APPLICANT MAY RECEIVE.
  4.  RECEIPT  OF  TAX BENEFITS. IN ORDER TO BECOME A PARTICIPANT IN THE
PROGRAM, AN APPLICANT MUST MEET THE JOB  PROJECTIONS  SPECIFIED  IN  ITS
APPLICATION WITHIN TWENTY-FOUR MONTHS OF THE DATE OF THE ISSUANCE OF ITS
CERTIFICATE  OF ELIGIBILITY. AN APPLICANT THAT MEETS ITS JOB PROJECTIONS
WITHIN THAT TWENTY-FOUR MONTH PERIOD  MUST  SUBMIT  PROOF  OF  THAT  JOB
CREATION  TO  THE  DEPARTMENT  AND  PROOF OF ITS ACTUAL EXPENDITURES AND
OTHER REQUIRED INFORMATION AS THE COMMISSIONER MAY PRESCRIBE RELATING TO
THE EXCELSIOR JOBS PROGRAM  CREDIT.  AFTER  REVIEWING  SUCH  PROOF,  THE
DEPARTMENT  SHALL  CERTIFY  THE  APPLICANT AS A PARTICIPANT AND ISSUE TO
THAT PARTICIPANT A CERTIFICATE OF TAX CREDIT FOR ONE  TAXABLE  YEAR.  TO

S. 6610--A                         77                         A. 9710--A

RECEIVE  A  CERTIFICATE  OF TAX CREDIT FOR SUBSEQUENT TAXABLE YEARS, THE
PARTICIPANT MUST SUBMIT TO THE DEPARTMENT A PERFORMANCE REPORT  REQUIRED
BY  SECTION THREE HUNDRED FIFTY-EIGHT OF THIS ARTICLE, PROOF THAT IT HAS
CREATED  AND RETAINED THE NET NEW JOBS, PROOF OF ITS ACTUAL EXPENDITURES
FOR QUALIFIED  INVESTMENTS  CONTAINED  IN  ITS  APPLICATION,  AND  OTHER
REQUIRED  INFORMATION  AS THE COMMISSIONER MAY PRESCRIBE RELATING TO THE
EXCELSIOR JOBS PROGRAM CREDIT. A PARTICIPANT'S INCREASE  IN  EMPLOYMENT,
QUALIFIED  INVESTMENT,  OR  FEDERAL  RESEARCH AND DEVELOPMENT TAX CREDIT
ATTRIBUTABLE TO RESEARCH AND DEVELOPMENT ACTIVITIES IN  NEW  YORK  STATE
ABOVE  ITS  PROJECTIONS LISTED IN ITS APPLICATION SHALL NOT RESULT IN AN
INCREASE IN TAX BENEFITS UNDER THIS ARTICLE.  HOWEVER,  IF  THE  PARTIC-
IPANT'S  EXPENDITURES  ARE  LESS  THAN THE ESTIMATED AMOUNTS, THE CREDIT
SHALL BE LESS THAN THE ESTIMATE. IF AN APPLICANT  FAILS  TO  CREATE  ITS
PROJECTED  NUMBER  OF NET NEW JOBS IN THE FIRST TWENTY-FOUR MONTHS AFTER
BEING ADMITTED TO THE PROGRAM, SUCH APPLICANT SHALL NOT BE CERTIFIED  AS
A  PARTICIPANT, SHALL BE REMOVED FROM THE PROGRAM, AND IS NOT ALLOWED TO
CLAIM THE EXCELSIOR JOBS PROGRAM CREDIT.
  5. A PARTICIPANT MAY CLAIM TAX BENEFITS COMMENCING IN THE FIRST  TAXA-
BLE  YEAR  THAT  THE  BUSINESS  ENTERPRISE RECEIVES A CERTIFICATE OF TAX
CREDIT OR THE FIRST TAXABLE YEAR LISTED ON ITS PRELIMINARY  SCHEDULE  OF
BENEFITS,  WHICHEVER IS LATER. A PARTICIPANT MAY CLAIM SUCH BENEFITS FOR
THE NEXT FOUR CONSECUTIVE TAXABLE YEARS, PROVIDED THAT  THE  PARTICIPANT
DEMONSTRATES  TO  THE DEPARTMENT THAT IT CONTINUES TO SATISFY THE ELIGI-
BILITY CRITERIA SPECIFIED IN SECTION THREE HUNDRED FIFTY-THREE  OF  THIS
ARTICLE  AND  SUBDIVISION  TWO  OF THIS SECTION IN EACH OF THOSE TAXABLE
YEARS.
  S 355. EXCELSIOR JOBS PROGRAM CREDIT.   1. EXCELSIOR JOBS  TAX  CREDIT
COMPONENT. A PARTICIPANT IN THE EXCELSIOR JOBS PROGRAM SHALL BE ELIGIBLE
TO  CLAIM  A  CREDIT EQUAL TO AT LEAST TWO THOUSAND FIVE HUNDRED DOLLARS
BUT NOT MORE THAN TEN THOUSAND DOLLARS FOR EACH NET NEW JOB  IT  CREATES
IN  NEW  YORK  STATE.  THE AMOUNT OF SUCH CREDIT PER JOB SHALL BE ESTAB-
LISHED IN THE SOLE DISCRETION OF THE COMMISSIONER AND SHALL BE BASED  ON
CRITERIA  INCLUDING  SALARY  AND BENEFIT LEVELS AND LOCATION IN A CENSUS
TRACT DESIGNATED AS DISTRESSED BY THE COMMISSIONER.
  2. EXCELSIOR INVESTMENT TAX CREDIT COMPONENT.  A  PARTICIPANT  IN  THE
EXCELSIOR  JOBS PROGRAM SHALL BE ELIGIBLE TO CLAIM A CREDIT ON QUALIFIED
INVESTMENTS. THE CREDIT SHALL BE EQUAL TO TWO PERCENT  OF  THE  COST  OR
OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF THE QUALIFIED INVESTMENT.
A  PARTICIPANT  MAY  NOT  CLAIM BOTH THE EXCELSIOR INVESTMENT TAX CREDIT
COMPONENT AND THE INVESTMENT TAX CREDIT SET FORTH IN SUBDIVISION  TWELVE
OF  SECTION  TWO HUNDRED TEN, SUBSECTION (A) OF SECTION SIX HUNDRED SIX,
OR SUBSECTION (I) OF SECTION FOURTEEN HUNDRED FIFTY-SIX OF THE  TAX  LAW
FOR  THE  SAME PROPERTY IN ANY TAXABLE YEAR. IN ADDITION, A TAXPAYER WHO
OR WHICH IS QUALIFIED TO  CLAIM  THE  EXCELSIOR  INVESTMENT  TAX  CREDIT
COMPONENT AND IS ALSO QUALIFIED TO CLAIM THE BROWNFIELD TANGIBLE PROPER-
TY CREDIT COMPONENT UNDER SECTION TWENTY-ONE OF THE TAX LAW, AS ADDED BY
CHAPTER  ONE  OF  THE  LAWS  OF TWO THOUSAND THREE, MAY CLAIM EITHER THE
EXCELSIOR INVESTMENT TAX CREDIT  COMPONENT  OR  SUCH  TANGIBLE  PROPERTY
CREDIT  COMPONENT,  BUT  NOT  BOTH  WITH REGARD TO A PARTICULAR PIECE OF
PROPERTY. A CREDIT MAY NOT BE CLAIMED UNTIL A  BUSINESS  ENTERPRISE  HAS
RECEIVED  A  CERTIFICATE  OF TAX CREDIT, PROVIDED THAT QUALIFIED INVEST-
MENTS MADE ON OR AFTER THE ISSUANCE OF THE  CERTIFICATE  OF  ELIGIBILITY
BUT BEFORE THE ISSUANCE OF THE CERTIFICATE OF TAX CREDIT TO THE BUSINESS
ENTERPRISE, MAY BE CLAIMED IN THE FIRST TAXABLE YEAR FOR WHICH THE BUSI-
NESS  ENTERPRISE IS ALLOWED TO CLAIM THE CREDIT. EXPENSES INCURRED PRIOR

S. 6610--A                         78                         A. 9710--A

TO THE DATE THE CERTIFICATE OF ELIGIBILITY IS ISSUED ARE NOT ELIGIBLE TO
BE INCLUDED IN THE CALCULATION OF THE CREDIT.
  3.  EXCELSIOR RESEARCH AND DEVELOPMENT TAX CREDIT COMPONENT. A PARTIC-
IPANT IN THE EXCELSIOR JOBS PROGRAM SHALL BE ELIGIBLE TO CLAIM A  CREDIT
EQUAL  TO  TEN  PERCENT  OF  THE  PORTION  OF  THE PARTICIPANT'S FEDERAL
RESEARCH AND DEVELOPMENT TAX CREDIT THAT RELATES  TO  THE  PARTICIPANT'S
RESEARCH AND DEVELOPMENT EXPENDITURES IN NEW YORK STATE DURING THE TAXA-
BLE YEAR.
  4. REFUNDABILITY OF CREDITS.  THE TAX CREDIT COMPONENTS ESTABLISHED IN
THIS  SECTION  SHALL  BE  REFUNDABLE  AS  PROVIDED  IN THE TAX LAW. IF A
PARTICIPANT FAILS TO SATISFY THE ELIGIBILITY CRITERIA IN ANY  ONE  YEAR,
IT  WILL  LOSE  THE  ABILITY TO CLAIM CREDIT FOR THAT YEAR. THE EVENT OF
SUCH FAILURE SHALL NOT EXTEND THE ORIGINAL FIVE-YEAR ELIGIBILITY PERIOD.
  5. CLAIM OF TAX CREDIT.  THE BUSINESS ENTERPRISE SHALL BE  ALLOWED  TO
CLAIM THE CREDIT AS PRESCRIBED IN SECTION THIRTY-ONE OF THE TAX LAW.
  S  356.  POWERS  AND  DUTIES OF THE COMMISSIONER.  1. THE COMMISSIONER
SHALL PROMULGATE REGULATIONS ESTABLISHING  AN  APPLICATION  PROCESS  AND
SELECTION CRITERIA, THAT WILL BE APPLIED CONSISTENT WITH THE PURPOSES OF
THIS  ARTICLE,  SO  AS  NOT  TO EXCEED THE ANNUAL CAP ON TAX CREDITS SET
FORTH IN  SECTION  THREE  HUNDRED  FIFTY-NINE  OF  THIS  ARTICLE  WHICH,
NOTWITHSTANDING  ANY PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRA-
TIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMERGENCY BASIS.
  2. THE COMMISSIONER SHALL, IN  CONSULTATION  WITH  THE  DEPARTMENT  OF
TAXATION  AND FINANCE, DEVELOP A CERTIFICATE OF TAX CREDIT THAT SHALL BE
ISSUED BY THE COMMISSIONER TO PARTICIPANTS.  PARTICIPANTS  MUST  INCLUDE
THE  CERTIFICATE  OF TAX CREDIT WITH THEIR TAX RETURN TO RECEIVE ANY TAX
BENEFITS UNDER THIS ARTICLE.
  3. THE COMMISSIONER SHALL SOLELY  DETERMINE  THE  ELIGIBILITY  OF  ANY
APPLICANT  APPLYING  FOR  ENTRY  INTO  THE  PROGRAM AND SHALL REMOVE ANY
PARTICIPANT FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIREMENTS
SET FORTH IN SUBDIVISION TWO OF SECTION THREE HUNDRED FIFTY-FOUR OF THIS
ARTICLE.
  S 357. MAINTENANCE OF RECORDS.  EACH PARTICIPANT SHALL KEEP ALL  RELE-
VANT  RECORDS  FOR  THEIR  DURATION  OF PROGRAM PARTICIPATION PLUS THREE
YEARS.
  S 358. REPORTING.   1. EACH  PARTICIPANT  MUST  SUBMIT  A  PERFORMANCE
REPORT  ANNUALLY,  IN  SUCH FORM AS THE COMMISSIONER MAY REQUIRE, WITHIN
THIRTY DAYS OF THE END OF THEIR TAXABLE YEAR.
  2. THE COMMISSIONER SHALL ANNUALLY PREPARE A PROGRAM REPORT FOR  POST-
ING  ON  THE  DEPARTMENT'S  WEB SITE BY DECEMBER THIRTY-FIRST. THE FIRST
REPORT WILL BE DUE DECEMBER  THIRTY-FIRST,  TWO  THOUSAND  ELEVEN.  SUCH
REPORT  SHALL  INCLUDE,  BUT NOT BE LIMITED TO, THE FOLLOWING: NUMBER OF
APPLICANTS; NUMBER OF  PARTICIPANTS  APPROVED;  NAMES  OF  PARTICIPANTS;
TOTAL  AMOUNT  OF BENEFITS CERTIFIED; BENEFITS RECEIVED PER PARTICIPANT;
TOTAL NUMBER OF NET NEW JOBS CREATED; NUMBER OF NET NEW JOBS CREATED PER
PARTICIPANT; AGGREGATE NEW INVESTMENT IN THE STATE; NEW  INVESTMENT  PER
PARTICIPANT; AND SUCH OTHER INFORMATION AS THE COMMISSIONER DETERMINES.
  S  359.  CAP ON TAX CREDIT.  THE TOTAL AMOUNT OF TAX CREDITS LISTED ON
CERTIFICATES OF TAX CREDIT ISSUED BY THE COMMISSIONER  FOR  ANY  TAXABLE
YEAR  MAY  NOT  EXCEED  THE  LIMITATIONS  SET FORTH IN THIS SECTION. ANY
AMOUNT OF TAX CREDITS NOT AWARDED FOR A PARTICULAR TAXABLE YEAR MAY  NOT
BE  USED  BY  THE  COMMISSIONER  TO AWARD TAX CREDITS IN ANOTHER TAXABLE
YEAR.

CREDIT COMPONENTS IN THE AGGREGATE                WITH RESPECT TO
SHALL NOT EXCEED:                                 TAXABLE YEARS

S. 6610--A                         79                         A. 9710--A

                                                  BEGINNING IN:

$ 50 MILLION                                      2011
$ 100 MILLION                                     2012
$ 150 MILLION                                     2013
$ 200 MILLION                                     2014
$ 250 MILLION                                     2015
$ 200 MILLION                                     2016
$ 150 MILLION                                     2017
$ 100 MILLION                                     2018
$ 50 MILLION                                      2019
  S  2.  The  tax  law  is amended by adding a new section 31 to read as
follows:
  S 31. EXCELSIOR JOBS PROGRAM CREDIT. (A) GENERAL. A  TAXPAYER  SUBJECT
TO  TAX  UNDER ARTICLE 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 (G) OF THIS SECTION. THE AMOUNT  OF
THE  CREDIT,  ALLOWABLE FOR UP TO FIVE CONSECUTIVE TAXABLE YEARS, IS THE
SUM OF THE FOLLOWING THREE CREDIT COMPONENTS:
  (1) THE EXCELSIOR JOBS TAX CREDIT;
  (2) THE EXCELSIOR INVESTMENT TAX CREDIT; AND
  (3) THE EXCELSIOR RESEARCH AND DEVELOPMENT TAX CREDIT.
  (B) TO BE ELIGIBLE FOR THE EXCELSIOR JOBS PROGRAM CREDIT, THE TAXPAYER
SHALL HAVE BEEN ISSUED A "CERTIFICATE OF TAX CREDIT" BY  THE  DEPARTMENT
OF  ECONOMIC  DEVELOPMENT  PURSUANT TO SUBDIVISION FOUR OF SECTION THREE
HUNDRED FIFTY-FOUR OF THE ECONOMIC DEVELOPMENT  LAW,  WHICH  CERTIFICATE
SHALL  SET FORTH THE AMOUNT OF EACH CREDIT COMPONENT THAT MAY BE CLAIMED
FOR THE TAXABLE YEAR. A TAXPAYER MAY CLAIM SUCH CREDIT FOR FIVE  CONSEC-
UTIVE  TAXABLE  YEARS  COMMENCING  IN  THE  FIRST  TAXABLE YEAR THAT THE
TAXPAYER RECEIVES A CERTIFICATE OF TAX CREDIT OR THE FIRST TAXABLE  YEAR
LISTED  ON ITS PRELIMINARY SCHEDULE OF BENEFITS, WHICHEVER IS LATER. THE
TAXPAYER SHALL BE ALLOWED TO CLAIM ONLY THE AMOUNT LISTED ON THE CERTIF-
ICATE OF TAX CREDIT FOR THAT TAXABLE YEAR.  SUCH CERTIFICATE  SHOULD  BE
ATTACHED  TO  THE TAXPAYER'S RETURN. NO COST OR EXPENSE PAID OR INCURRED
BY THE TAXPAYER SHALL BE THE BASIS FOR MORE THAN ONE COMPONENT  OF  THIS
CREDIT OR ANY OTHER TAX CREDIT.
  (C)  ELECTION OF CREDIT. A TAXPAYER WHO OR WHICH IS QUALIFIED TO CLAIM
THE EXCELSIOR INVESTMENT TAX CREDIT COMPONENT AND IS ALSO  QUALIFIED  TO
CLAIM THE INVESTMENT TAX CREDIT PROVIDED FOR UNDER SUBDIVISION TWELVE OF
SECTION  TWO  HUNDRED TEN, SUBSECTION (A) OF SECTION SIX HUNDRED SIX, OR
SUBSECTION (I) OF SECTION FOURTEEN HUNDRED FIFTY-SIX  OF  THIS  CHAPTER,
MAY  CLAIM  EITHER  THE EXCELSIOR INVESTMENT TAX CREDIT COMPONENT OR THE
INVESTMENT TAX CREDIT, BUT NOT BOTH WITH REGARD TO A PARTICULAR PIECE OF
PROPERTY. IN ADDITION, A TAXPAYER WHO OR WHICH IS QUALIFIED TO CLAIM THE
EXCELSIOR INVESTMENT TAX CREDIT COMPONENT AND IS ALSO QUALIFIED TO CLAIM
THE BROWNFIELD TANGIBLE PROPERTY CREDIT COMPONENT UNDER SECTION  TWENTY-
ONE OF THIS ARTICLE, AS ADDED BY CHAPTER ONE OF THE LAWS OF TWO THOUSAND
THREE, MAY CLAIM EITHER THE EXCELSIOR INVESTMENT TAX CREDIT COMPONENT OR
SUCH  TANGIBLE  PROPERTY CREDIT COMPONENT, BUT NOT BOTH WITH REGARD TO A
PARTICULAR PIECE OF  PROPERTY.  THE  ELECTION  TO  CLAIM  THE  EXCELSIOR
INVESTMENT TAX CREDIT COMPONENT, THE INVESTMENT TAX CREDIT OR THE BROWN-
FIELD  TANGIBLE PROPERTY CREDIT COMPONENT, WITH REGARD TO THE SAME PROP-
ERTY, IS IRREVOCABLE.
  (D) INFORMATION SHARING. NOTWITHSTANDING ANY PROVISION OF  THIS  CHAP-
TER,  EMPLOYEES  AND  OFFICERS OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT

S. 6610--A                         80                         A. 9710--A

AND THE DEPARTMENT SHALL BE  ALLOWED  AND  ARE  DIRECTED  TO  SHARE  AND
EXCHANGE:
  (1)  INFORMATION  DERIVED FROM TAX RETURNS OR REPORTS THAT IS RELEVANT
TO A  TAXPAYER'S  ELIGIBILITY  TO  PARTICIPATE  IN  THE  EXCELSIOR  JOBS
PROGRAM;
  (2)  INFORMATION  REGARDING  THE COMPONENT OR COMPONENTS OF THE CREDIT
APPLIED FOR, ALLOWED, OR CLAIMED PURSUANT TO THIS SECTION AND  TAXPAYERS
WHO ARE APPLYING FOR THE CREDIT OR WHO ARE CLAIMING THE CREDIT; AND
  (3)  INFORMATION  CONTAINED  IN  OR  DERIVED  FROM  CREDIT CLAIM FORMS
SUBMITTED TO THE DEPARTMENT AND  APPLICATIONS  FOR  ADMISSION  INTO  THE
EXCELSIOR JOBS PROGRAM.
  OTHER  THAN  THE  INFORMATION  REQUIRED  TO BE CONTAINED IN THE REPORT
ISSUED PURSUANT TO SUBDIVISION (E)  OF  THIS  SECTION,  ALL  INFORMATION
EXCHANGED BETWEEN THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPART-
MENT  SHALL NOT BE SUBJECT TO DISCLOSURE OR INSPECTION UNDER THE STATE'S
FREEDOM OF INFORMATION LAW.
  (E) EXCELSIOR JOBS PROGRAM CREDIT REPORT. (1)  THE  COMMISSIONER  MUST
PUBLISH  AN  EXCELSIOR  JOBS  PROGRAM TAX CREDIT REPORT ANNUALLY BY JUNE
THIRTIETH. THE FIRST REPORT MUST BE PUBLISHED  BY  JUNE  THIRTIETH,  TWO
THOUSAND TWELVE.
  (2) THE CREDIT REPORT MUST CONTAIN THE FOLLOWING INFORMATION ABOUT THE
EXCELSIOR  JOBS PROGRAM TAX CREDIT CLAIMED UNDER THIS CHAPTER DURING THE
PREVIOUS CALENDAR YEAR:
  (I) THE NAME OF EACH TAXPAYER CLAIMING A CREDIT; PROVIDED HOWEVER,  IF
THE  TAXPAYER  CLAIMS  A  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 COMPA-
NY,  PARTNERSHIP  OR  SUBCHAPTER S CORPORATION EARNING ANY OF THE CREDIT
MUST BE INCLUDED IN THE REPORT INSTEAD OF INFORMATION ABOUT THE TAXPAYER
CLAIMING THE CREDIT; AND
  (II) THE AMOUNT OF EACH CREDIT  COMPONENT  EARNED  BY  EACH  TAXPAYER;
PROVIDED  HOWEVER,  IF THE TAXPAYER CLAIMS A 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 AMOUNT OF CREDIT
EARNED BY EACH ENTITY MUST BE INCLUDED IN THE REPORT INSTEAD OF INFORMA-
TION ABOUT THE TAXPAYER CLAIMING THE CREDIT.
  (3) THE CREDIT REPORT MAY ALSO CONTAIN ANY OTHER INFORMATION  RECEIVED
BY  THE  COMMISSIONER  WITH  REGARD TO THE EXCELSIOR JOBS PROGRAM CREDIT
THAT THE COMMISSIONER DEEMS TO BE USEFUL IN EVALUATING THE  USE  OF  THE
CREDIT.   THE INFORMATION INCLUDED IN THE CREDIT 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.
  (F) CREDIT RECAPTURE. IF A CERTIFICATE OF ELIGIBILITY OR A CERTIFICATE
OF  TAX  CREDIT  ISSUED  BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT UNDER
ARTICLE SEVENTEEN OF THE ECONOMIC DEVELOPMENT LAW  IS  REVOKED  BY  SUCH
DEPARTMENT,  THE  AMOUNT OF CREDIT DESCRIBED IN THIS SECTION AND CLAIMED
BY THE TAXPAYER PRIOR TO THAT REVOCATION SHALL BE ADDED BACK  TO  INCOME
IN THE TAXABLE YEAR IN WHICH ANY SUCH REVOCATION BECOMES FINAL.
  (G)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9-A: SECTION 210: SUBDIVISION 41.
  (2) ARTICLE 22: SECTION 606: SUBSECTION (QQ).
  (3) ARTICLE 32: SECTION 1456: SUBSECTION (U).
  (4) ARTICLE 33: SECTION 1511: SUBDIVISION (Y).
  S 3. Section 210 of the tax law is amended by adding a new subdivision
41 to read as follows:

S. 6610--A                         81                         A. 9710--A

  41. EXCELSIOR JOBS PROGRAM CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER
WILL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION  THIRTY-
ONE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH  YEAR  TO  LESS
THAN  THE  HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF
SUBDIVISION ONE OF THIS  SECTION.  HOWEVER,  IF  THE  AMOUNT  OF  CREDIT
ALLOWED  UNDER  THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE  IN  SUCH  TAXABLE
YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED
IN  ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF
THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS  OF  SUBSECTION  (C)  OF
SECTION  ONE  THOUSAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO
INTEREST WILL BE PAID THEREON.
  S 4. Section 606 of the tax law is amended by adding a new  subsection
(qq) to read as follows:
  (QQ)  EXCELSIOR  JOBS PROGRAM CREDIT. (1) A TAXPAYER WILL BE ALLOWED A
CREDIT, TO THE EXTENT ALLOWED UNDER SECTION THIRTY-ONE OF THIS  CHAPTER,
AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX  HUNDRED
EIGHTY-SIX  OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE
PAID THEREON.
  S 5. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended  by adding a new clause (xxxi) to read as
follows:

(XXXI) EXCELSIOR JOBS PROGRAM TAX  AMOUNT OF CREDIT UNDER SUBDIVISION
CREDIT UNDER SUBSECTION (QQ)       FORTY-ONE OF SECTION TWO HUNDRED TEN
                                   OR UNDER SUBDIVISION (U) OF SECTION
                                   FOURTEEN HUNDRED FIFTY-SIX

  S 6. Section 1456 of the tax law is amended by adding a new subsection
(u) to read as follows:
  (U) EXCELSIOR JOBS PROGRAM TAX CREDIT.  (1)  ALLOWANCE  OF  CREDIT.  A
TAXPAYER WILL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION
THIRTY-ONE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR WILL
NOT  REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE MINIMUM TAX FIXED
BY PARAGRAPH THREE OF SUBSECTION (B) OF SECTION FOURTEEN HUNDRED  FIFTY-
FIVE  OF  THIS  ARTICLE.  HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY
AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR WILL BE TREAT-
ED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR  REFUNDED  IN  ACCORDANCE
WITH  THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER.
PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOU-
SAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST  WILL  BE
PAID THEREON.
  S  7.  Section 1511 of the tax law is amended by adding a new subdivi-
sion (y) to read as follows:
  (Y) EXCELSIOR JOBS PROGRAM TAX CREDIT.  (1)  ALLOWANCE  OF  CREDIT.  A
TAXPAYER WILL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION
THIRTY-ONE OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS ARTICLE.

S. 6610--A                         82                         A. 9710--A

  (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS
THAN  THE  MINIMUM  TAX FIXED BY THIS ARTICLE. HOWEVER, IF THE AMOUNT OF
CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
TAX  TO  SUCH  AMOUNT,  ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
  S 8. This act shall take effect July 1, 2010.

                                 PART X

  Section 1. It is the intent of the legislature to clarify and  confirm
that  the  amendments made to the general municipal law by chapter 57 of
the laws of 2009 that require the revocation of certification of certain
business entities previously certified under the  empire  zones  program
are  intended  to be effective for the taxable year in which the revoca-
tion of certification occurs  and  for  all  subsequent  taxable  years,
notwithstanding that any such business entity may subsequently apply for
certification  pursuant  to  part  11  of  title 5 of the New York state
codes, rules and regulations, and that such revocations of certification
that occur in 2009 are deemed to be  in  effect  for  the  taxable  year
commencing on or after January 1, 2008 and before January 1, 2009.
  S  2.  Subdivision (a) of section 959 of the general municipal law, as
amended by section 3 of part S-1 of chapter 57 of the laws of  2009,  is
amended to read as follows:
  (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 certification
by the commissioner 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 caus-
ing individuals to transfer from existing employment with another  busi-
ness  enterprise  to  similar employment with the business enterprise so
certified, and transferring existing employment from one or  more  other
municipalities, 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;

S. 6610--A                         83                         A. 9710--A

(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
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  decertification by the commissioner, upon the recommendation of the
commissioner of labor, 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 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 decertif-
ication by the commissioner 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 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 busi-
ness  enterprise failed to disclose facts in its application for certif-
ication that would constitute grounds for not issuing  a  certification;
(2)  the  business enterprise has failed to construct, expand, rehabili-
tate or operate or invest in its facility  substantially  in  accordance
with the representations 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;
(4) where applicable, the business enterprise has failed  to  submit  an
annual  report  after  it  has  applied for zone tax benefits or program
assistance based on new hires or investments or failed to  submit  other
information  when  due;  (5) the business enterprise, 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 anoth-
er  business  enterprise  with similar ownership and located in New York
state to similar employment with the certified business enterprise or if
the enterprise acquired, purchased, leased, or  had  transferred  to  it
real  property  previously  owned  by  an entity with similar ownership,
regardless of form of incorporation or organization;  (6)  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)

S. 6610--A                         84                         A. 9710--A

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 business
enterprise is decertified with respect to an empire zone: (A)  the  date
determined  to  be  the earliest event constituting grounds for revoking
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; WITH RESPECT TO
ANY BUSINESS ENTERPRISE WHOSE CERTIFICATION HAS BEEN REVOKED PURSUANT TO
SUBPARAGRAPH FIVE OR SIX OF THIS PARAGRAPH, THAT REVOCATION (I) WILL  BE
EFFECTIVE  FOR  A  TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND EIGHT AND BEFORE JANUARY  FIRST,  TWO  THOUSAND  NINE  AND  FOR
SUBSEQUENT TAXABLE YEARS, UNLESS THE BUSINESS ENTERPRISE IS SUBSEQUENTLY
RE-CERTIFIED PURSUANT TO PART 11 OF TITLE 5 OF THE NEW YORK STATE CODES,
RULES  AND  REGULATIONS  FOR A BUSINESS ENTERPRISE FOR WHICH A REVIEW IS
REQUIRED TO BE CONDUCTED PURSUANT TO SUBDIVISION (W) OF THIS SECTION  IN
CALENDAR  YEAR  TWO THOUSAND NINE, AND (II) THEREAFTER WILL BE EFFECTIVE
FOR THE TAXABLE YEAR DURING WHICH THE  COMMISSIONER  MAKES  HIS  OR  HER
DETERMINATION  (PRIOR  TO  ANY  APPEAL) TO REVOKE THE CERTIFICATION OF A
BUSINESS ENTERPRISE AND FOR SUBSEQUENT TAXABLE YEARS;
  S 3. Subdivision (w) of section 959 of the general municipal  law,  as
amended  by  section 3 of part S-1 of chapter 57 of the laws of 2009, is
amended to read as follows:
  (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
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)] (V) 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  economic,  social  and
environmental  factors  when  evaluating  the  costs  and  benefits of a
project to the state and whether continued  certification  is  warranted
based  on such factors. The commissioner shall provide written notifica-
tion to such business enterprise of his or her determination  to  revoke
the  certification,  including  the  reasons therefor. Such notification
shall state that the business enterprise may appeal the determination 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 commis-
sioner's revocation notification. Provided that the business  enterprise
appeals the commissioner's determination within fifteen business days of

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the  commissioner's revocation notification, the business enterprise may
present a written submission to the empire  zone  designation  board  no
later  than  sixty days following the date the commissioner'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 business 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] SUFFICIENT evidence presented BY THE BUSI-
NESS  ENTERPRISE  demonstrating  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 subdivision (a)  of  this  section,  any  extraordinary
circumstances  occurred  which would justify the continued certification
of the business enterprise.
  S 4. Paragraph 6 of subdivision (d) of section 1119 of the tax law, as
added by section 31 of part S-1 of chapter 57 of the laws  of  2009,  is
amended to read as follows:
  (6)  Any  reference  in this chapter OR IN ANY LOCAL LAW, ORDINANCE OR
RESOLUTION ENACTED PURSUANT TO THE AUTHORITY OF ARTICLE  TWENTY-NINE  OF
THIS CHAPTER to former subdivision (z) of section eleven hundred fifteen
of  this  article  will be deemed to be a reference to this subdivision,
AND ANY SUCH LOCAL LAW,  ORDINANCE  OR  RESOLUTION  WHICH  PROVIDES  THE
EXEMPTIONS  DESCRIBED  IN  FORMER SUBDIVISION (Z) OF SUCH SECTION ELEVEN
HUNDRED FIFTEEN SHALL BE DEEMED INSTEAD TO PROVIDE THE REFUNDS AND CRED-
ITS DESCRIBED IN THIS SUBDIVISION.
  S 5. Subdivision (a) of section 17 of the tax law, as added by section
43 of part S-1 of chapter 57 of the laws of 2009, is amended to read  as
follows:
  (a)  The  department  of  taxation  and finance must publish an empire
zones tax benefits report annually by [January thirty-first] JUNE  THIR-
TIETH. The first report must be published by [January thirty-first] JUNE
THIRTIETH, two thousand [thirteen] ELEVEN.
  S  6.  Subdivision  (d) of section 44 of part S-1 of chapter 57 of the
laws of 2009, amending the general municipal law and the tax law  relat-
ing  to enacting reforms to the empire zones program, is amended to read
as follows:
  (d) section forty-two of this act shall  take  effect  on  January  1,
[2012] 2010; and
  S  7.  Subdivision  12-B  of  section 210 of the tax law is amended by
adding two new paragraphs (g) and (h) to read as follows:
  (G) NOTWITHSTANDING THE EXPIRATION OF THE EMPIRE ZONES  PROGRAM  UNDER
ARTICLE  EIGHTEEN-B  OF  THE  GENERAL  MUNICIPAL LAW, A TAXPAYER THAT IS
CERTIFIED AS A QUALIFIED INVESTMENT PROJECT  PURSUANT  TO  SUCH  ARTICLE
EIGHTEEN-B  ON  THE  DAY  IMMEDIATELY PRECEDING THE DAY THE EMPIRE ZONES
PROGRAM EXPIRED SHALL CONTINUE TO BE DEEMED CERTIFIED UNDER SUCH ARTICLE
EIGHTEEN-B FOR PURPOSES OF THIS SUBDIVISION FOR  THE  REMAINDER  OF  THE
TAXABLE  YEAR IN WHICH THE EXPIRATION OCCURRED AND FOR THE NEXT SUCCEED-
ING NINE TAXABLE YEARS. IN ADDITION,  THE  AREAS  DESIGNATED  AS  EMPIRE
ZONES  IN  WHICH  THE  TAXPAYER  IS  CERTIFIED AS A QUALIFIED INVESTMENT
PROJECT ON THE DAY  IMMEDIATELY  PRECEDING  THE  DAY  THE  EMPIRE  ZONES
PROGRAM EXPIRED SHALL CONTINUE TO BE DEEMED EMPIRE ZONES FOR PURPOSES OF
THIS  SUBDIVISION  FOR  THE  REMAINDER  OF THE TAXABLE YEAR IN WHICH THE
EXPIRATION OCCURRED AND FOR THE NEXT SUCCEEDING NINE TAXABLE YEARS.
  (H) NOTWITHSTANDING THE EXPIRATION OF THE EMPIRE ZONES  PROGRAM  UNDER
ARTICLE  EIGHTEEN-B  OF THE GENERAL MUNICIPAL LAW AND EXCEPT AS PROVIDED

S. 6610--A                         86                         A. 9710--A

IN PARAGRAPH (G) OF THIS SUBDIVISION, A TAXPAYER THAT IS CERTIFIED AS AN
EMPIRE ZONE BUSINESS PURSUANT TO SUCH  ARTICLE  EIGHTEEN-B  ON  THE  DAY
IMMEDIATELY  PRECEDING  THE  DAY  THE EMPIRE ZONES PROGRAM EXPIRED SHALL
CONTINUE  TO  BE  DEEMED  CERTIFIED  UNDER  SUCH  ARTICLE EIGHTEEN-B FOR
PURPOSES OF THIS SUBDIVISION UNTIL APRIL FIRST, TWO  THOUSAND  FOURTEEN.
IN  ADDITION, THE AREAS DESIGNATED AS EMPIRE ZONES IN WHICH THE TAXPAYER
IS CERTIFIED AS AN EMPIRE ZONE BUSINESS ON THE DAY IMMEDIATELY PRECEDING
THE DAY THE EMPIRE ZONES PROGRAM EXPIRED SHALL  CONTINUE  TO  BE  DEEMED
EMPIRE  ZONES  FOR  PURPOSES  OF THIS SUBDIVISION UNTIL APRIL FIRST, TWO
THOUSAND FOURTEEN.
  S 8. Subsection (j) of section 606 of the tax law is amended by adding
a new paragraph 7 to read as follows:
  (7) NOTWITHSTANDING THE EXPIRATION OF THE EMPIRE ZONES  PROGRAM  UNDER
ARTICLE  EIGHTEEN-B  OF  THE  GENERAL  MUNICIPAL LAW, A TAXPAYER THAT IS
CERTIFIED AS AN EMPIRE ZONE BUSINESS PURSUANT TO SUCH ARTICLE EIGHTEEN-B
ON THE DAY IMMEDIATELY  PRECEDING  THE  DAY  THE  EMPIRE  ZONES  PROGRAM
EXPIRED  SHALL  CONTINUE TO BE DEEMED CERTIFIED UNDER SUCH ARTICLE EIGH-
TEEN-B FOR PURPOSES OF THIS SUBDIVISION UNTIL APRIL FIRST, TWO  THOUSAND
FOURTEEN. IN ADDITION, THE AREAS DESIGNATED AS EMPIRE ZONES IN WHICH THE
TAXPAYER  IS CERTIFIED AS AN EMPIRE ZONE BUSINESS ON THE DAY IMMEDIATELY
PRECEDING THE DAY THE EMPIRE ZONES PROGRAM EXPIRED SHALL CONTINUE TO  BE
DEEMED  EMPIRE ZONES FOR PURPOSES OF THIS SUBDIVISION UNTIL APRIL FIRST,
TWO THOUSAND FOURTEEN.
  S 9. Subdivision 12-C of section 210 of the  tax  law  is  amended  by
adding two new paragraphs (d) and (e) to read as follows:
  (D)  NOTWITHSTANDING  THE EXPIRATION OF THE EMPIRE ZONES PROGRAM UNDER
ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL  LAW,  A  TAXPAYER  THAT  IS
CERTIFIED  AS  A  QUALIFIED  INVESTMENT PROJECT PURSUANT TO SUCH ARTICLE
EIGHTEEN-B ON THE DAY IMMEDIATELY PRECEDING THE  DAY  THE  EMPIRE  ZONES
PROGRAM EXPIRED SHALL CONTINUE TO BE DEEMED CERTIFIED UNDER SUCH ARTICLE
EIGHTEEN-B  FOR  PURPOSES  OF  THIS SUBDIVISION FOR THE REMAINDER OF THE
TAXABLE YEAR IN WHICH THE EXPIRATION OCCURRED AND FOR THE NEXT  SUCCEED-
ING  NINE  TAXABLE  YEARS.  IN  ADDITION, THE AREAS DESIGNATED AS EMPIRE
ZONES IN WHICH THE TAXPAYER  IS  CERTIFIED  AS  A  QUALIFIED  INVESTMENT
PROJECT  ON  THE  DAY  IMMEDIATELY  PRECEDING  THE  DAY THE EMPIRE ZONES
PROGRAM EXPIRED SHALL CONTINUE TO BE DEEMED EMPIRE ZONES FOR PURPOSES OF
THIS SUBDIVISION FOR THE REMAINDER OF THE  TAXABLE  YEAR  IN  WHICH  THE
EXPIRATION OCCURRED AND FOR THE NEXT SUCCEEDING NINE TAXABLE YEARS.
  (E)  NOTWITHSTANDING  THE EXPIRATION OF THE EMPIRE ZONES PROGRAM UNDER
ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW AND EXCEPT  AS  PROVIDED
IN PARAGRAPH (D) OF THIS SUBDIVISION, A TAXPAYER THAT IS CERTIFIED AS AN
EMPIRE  ZONE  BUSINESS  PURSUANT  TO  SUCH ARTICLE EIGHTEEN-B ON THE DAY
IMMEDIATELY PRECEDING THE DAY THE EMPIRE  ZONES  PROGRAM  EXPIRED  SHALL
CONTINUE  TO  BE  DEEMED  IN  THE  EMPIRE ZONE IN WHICH THE TAXPAYER WAS
CERTIFIED AS AN EMPIRE ZONE BUSINESS ON THE  DAY  IMMEDIATELY  PRECEDING
THE  DAY  THE  EMPIRE  ZONES PROGRAM EXPIRED FOR EACH OF THE THREE YEARS
NEXT SUCCEEDING THE TAXABLE YEAR FOR WHICH THE CREDIT UNDER  SUBDIVISION
TWELVE-B IS ALLOWED.
  S  10.  Subsection  (j-1)  of section 606 of the tax law is amended by
adding a new subdivision (4) to read as follows:
  (4) NOTWITHSTANDING THE EXPIRATION OF THE EMPIRE ZONES  PROGRAM  UNDER
ARTICLE  EIGHTEEN-B  OF  THE  GENERAL  MUNICIPAL LAW, A TAXPAYER THAT IS
CERTIFIED AS AN EMPIRE ZONE BUSINESS PURSUANT TO SUCH ARTICLE EIGHTEEN-B
ON THE DAY IMMEDIATELY  PRECEDING  THE  DAY  THE  EMPIRE  ZONES  PROGRAM
EXPIRED  SHALL  CONTINUE  TO  BE  DEEMED IN THE EMPIRE ZONE IN WHICH THE
TAXPAYER WAS CERTIFIED AS AN EMPIRE ZONE BUSINESS ON THE DAY IMMEDIATELY

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PRECEDING THE DAY THE EMPIRE ZONES PROGRAM EXPIRED FOR EACH OF THE THREE
YEARS NEXT SUCCEEDING THE TAXABLE YEAR FOR WHICH THE CREDIT UNDER SUBDI-
VISION (J) IS ALLOWED.
  S 11. Section 14 of the tax law is amended by adding a new subdivision
(h) to read as follows:
  (H)  SALES  AND  USE TAX. (1) IN ADDITION TO THE OTHER REQUIREMENTS OF
THIS SECTION, FOR BUSINESS ENTERPRISES  CERTIFIED  PURSUANT  TO  ARTICLE
EIGHTEEN-B  OF THE GENERAL MUNICIPAL LAW PRIOR TO APRIL FIRST, TWO THOU-
SAND NINE, IN ORDER FOR AN EXEMPTION UNDER SUBDIVISION  (Z)  OF  SECTION
ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER OR THE CREDIT OR REFUND DESCRIBED
IN SUBDIVISION (D) OF SECTION ELEVEN HUNDRED NINETEEN OF THIS CHAPTER OR
ANY LIKE EXEMPTION OR CREDIT OR REFUND IMPOSED PURSUANT TO THE AUTHORITY
OF ARTICLE TWENTY-NINE OF THIS CHAPTER TO APPLY WITH RESPECT TO A QUALI-
FIED  EMPIRE ZONE ENTERPRISE, SUCH ENTERPRISE SHALL APPLY TO THE COMMIS-
SIONER OF TAXATION AND FINANCE FOR THE ISSUANCE OF  A  QUALIFIED  EMPIRE
ZONE  ENTERPRISE  CERTIFICATION  IN THE MANNER PRESCRIBED BY THE COMMIS-
SIONER. IF SUCH COMMISSIONER GRANTS  SUCH  CERTIFICATION,  SUCH  CERTIF-
ICATION  SHALL  BE SUBJECT TO CONDITIONS SPECIFIED BY SUCH COMMISSIONER.
NOTHING HEREIN OR IN ANY OTHER LAW SHALL BE CONSTRUED  TO  PROHIBIT  THE
DISCLOSURE,  IN  SUCH MANNER AS THE COMMISSIONER OF TAXATION AND FINANCE
DEEMS APPROPRIATE, OF THE NAMES AND OTHER APPROPRIATE IDENTIFYING INFOR-
MATION OF THOSE PERSONS HOLDING  QUALIFIED  EMPIRE  ZONE  CERTIFICATIONS
PURSUANT  TO THIS SUBDIVISION, THOSE PERSONS WHOSE QUALIFIED EMPIRE ZONE
ENTERPRISE CERTIFICATIONS HAVE BEEN REVOKED OR PERSONS  WHOSE  QUALIFIED
EMPIRE  ZONE  ENTERPRISE  CERTIFICATIONS  HAVE EXPIRED. THE COMMISSIONER
SHALL NOT GRANT ANY CERTIFICATIONS PURSUANT TO  THIS  SUBDIVISION  AFTER
JUNE THIRTIETH, TWO THOUSAND TEN.
  (2)  A BUSINESS ENTERPRISE, CERTIFIED AS AN EMPIRE ZONE BUSINESS UNDER
ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW PRIOR  TO  APRIL  FIRST,
TWO  THOUSAND  NINE, AND CERTIFIED AS A QUALIFIED EMPIRE ZONE ENTERPRISE
BY THE COMMISSIONER OF TAXATION AND FINANCE PRIOR TO AUGUST  FIRST,  TWO
THOUSAND  NINE, IS ELIGIBLE TO CLAIM THE EXEMPTION UNDER SUBDIVISION (Z)
OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER OR ANY LIKE  EXEMPTION
FROM  TAX  IMPOSED  PURSUANT  TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF
THIS CHAPTER UNTIL SEPTEMBER FIRST, TWO THOUSAND NINE, PROVIDED THAT THE
OTHER REQUIREMENTS OF THE STATUTE ARE MET. A BUSINESS ENTERPRISE  CERTI-
FIED  AS AN EMPIRE ZONE BUSINESS UNDER ARTICLE EIGHTEEN-B OF THE GENERAL
MUNICIPAL LAW PRIOR TO APRIL FIRST, TWO THOUSAND NINE, AND CERTIFIED  AS
A  QUALIFIED  EMPIRE ZONE ENTERPRISE BY THE COMMISSIONER OF TAXATION AND
FINANCE AS OF OR PRIOR TO JUNE FIRST, TWO THOUSAND TEN, IS  ELIGIBLE  TO
CLAIM  THE  CREDIT  OR  REFUND  UNDER  SUBDIVISION (D) OF SECTION ELEVEN
HUNDRED NINETEEN OF THIS CHAPTER OR ANY LIKE CREDIT  OR  REFUND  IMPOSED
PURSUANT  TO  THE  AUTHORITY  OF  ARTICLE  TWENTY-NINE  OF THIS CHAPTER,
PROVIDED THAT THE OTHER REQUIREMENTS OF THE STATUTE ARE MET  DURING  THE
TERM OF ITS SALES AND USE TAX BENEFIT PERIOD NOTWITHSTANDING THE EXPIRA-
TION OF THE EMPIRE ZONES PROGRAM UNDER ARTICLE EIGHTEEN-B OF THE GENERAL
MUNICIPAL LAW.
  (3) DURING THE PERIOD THAT A BUSINESS ENTERPRISE IS ELIGIBLE TO APPLY,
OR IS QUALIFIED, FOR AN EXEMPTION OR A CREDIT OR REFUND OF THE SALES AND
COMPENSATING  USE TAXES UNDER THIS SECTION, THE COMMISSIONER OF ECONOMIC
DEVELOPMENT SHALL, AT THE TIME SUCH COMMISSIONER CERTIFIES  OR  DECERTI-
FIES  A  BUSINESS  ENTERPRISE  UNDER  ARTICLE  EIGHTEEN-B OF THE GENERAL
MUNICIPAL LAW, NOTIFY THE COMMISSIONER OF TAXATION AND FINANCE  OF  SUCH
CERTIFICATION  OR  DECERTIFICATION, WHICH NOTIFICATION SHALL INCLUDE THE
FULL LEGAL NAME, ADDRESS AND FEDERAL EMPLOYER IDENTIFICATION  NUMBER  OF
SUCH  ENTERPRISE. THE COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL, AT THE

S. 6610--A                         88                         A. 9710--A

TIME OF ANY SUCH CERTIFICATION,  ALSO  ADVISE  SUCH  ENTERPRISE  OF  THE
REQUIREMENTS IN PARAGRAPH ONE OF THIS SUBDIVISION.
  S 12. This act shall take effect immediately, provided that the amend-
ment  to  paragraph  6 of subdivision (d) of section 1119 of the tax law
made by section four of this act shall take effect on the same date  and
apply  in  the  same manner that section 31 of part S-1 of chapter 57 of
the laws of 2009 took effect and applied; provided that  the  amendments
to  section  14 of the tax law, made by section eleven of this act shall
take effect immediately and be deemed to have been  in  full  force  and
effect on April 1, 2009.

                                 PART Y

  Section 1. Section 51 of chapter 298 of the laws of 1985, amending the
tax law relating to the franchise tax on banking corporations imposed by
the tax law, authorized to be imposed by any city having a population of
one  million  or  more by chapter 772 of the laws of 1966 and imposed by
the administrative code of the city of New York and  relating  to  other
provisions  of  the  tax  law,  chapter  883 of the laws of 1975 and the
administrative code of the city of New York which relates to such  fran-
chise  tax,  as amended by section 1 of part H of chapter 60 of the laws
of 2007, is amended to read as follows:
  S 51. This act shall take effect immediately and shall apply to  taxa-
ble years beginning on or after January 1, 1985, except that:
  (a) sections one through eight shall not apply to taxable years begin-
ning on or after January 1, [2010] 2011;
  (b)  sections  nine,  twelve,  the  amendment  made  to paragraph 9 of
subsection (a) of section 1452 of  the  tax  law  by  section  thirteen,
sections  fifteen,  sixteen,  eighteen,  nineteen, twenty, twenty-three,
twenty-seven, thirty and thirty-two, the amendment made to  paragraph  9
of  subdivision  (a) of section 11-640 of the administrative code of the
city of New York by section thirty-three, sections thirty-five,  thirty-
six, thirty-eight, thirty-nine, forty, and forty-five shall not apply to
corporations  other than savings banks and savings and loan associations
for taxable years beginning on or after January 1, [2010] 2011;
  (c)  sections  twenty-one,  twenty-two,  twenty-four,  forty-one   and
forty-two  shall  not apply to corporations other than savings banks and
savings and loan associations for taxable years beginning  on  or  after
January  1,  [2010] 2011, provided, however, that the provisions of such
sections which relate to the alternative minimum tax measured by taxable
assets shall continue to apply to all taxpayers for taxable years begin-
ning on or after January 1, [2010] 2011;
  (d) the amendment to the section heading and the opening paragraph  of
section 11-643.3 of the administrative code of the city of New York made
by  section  forty-three  shall  not  apply  to  corporations other than
savings banks and savings and loan associations for taxable years begin-
ning on or after January 1, [2010] 2011 with respect to those provisions
of such section 11-643.3 which relate  to  the  basic  tax  measured  by
entire net income; and
  (e)  section twenty-eight, and the addition of new section 11-643.5 of
the administrative code of the city of New York made by  section  forty-
four  shall  not  apply  to  corporations  other  than savings banks and
savings and loan associations for taxable years beginning  on  or  after
January  1,  [2010] 2011, provided, however, that the provisions of such
sections which relate to  the  alternative  minimum  taxes  measured  by
assets,  issued  capital stock and one hundred twenty-five dollars shall

S. 6610--A                         89                         A. 9710--A

continue to apply to all taxpayers for taxable  years  beginning  on  or
after January 1, [2010] 2011.
  S  2.  Subdivision  (f)  of  section 110 of chapter 817 of the laws of
1987, amending the tax  law  and  the  environmental  conservation  law,
constituting  the business tax reform and rate reduction act of 1987, as
amended by section 2 of part H of chapter 60 of the  laws  of  2007,  is
amended to read as follows:
  (f) The provisions of section one hundred four of this act shall apply
to  taxable years beginning after December 31, 1986, and shall not apply
to corporations other than savings banks and savings  and  loan  associ-
ations  for  taxable years beginning on or after January 1, [2010] 2011,
provided, however, that the provisions of such section which  relate  to
the alternative minimum tax measured by taxable assets shall continue to
apply  to  all taxpayers for taxable years beginning on or after January
1, [2010] 2011.
  S 3. Subdivision (d) of section 68 of chapter 525 of the laws of 1988,
amending the tax law and the administrative code of the city of New York
relating to the imposition of taxes in the city of New York, as  amended
by  section 3 of part H of chapter 60 of the laws of 2007, is amended to
read as follows:
  (d) The provisions of section forty-six of this  act  shall  apply  to
taxable  years beginning after December 31, 1986, and shall not apply to
corporations other than savings banks and savings and loan  associations
for  taxable  years  beginning  on  or  after  January  1,  [2010] 2011,
provided, however, that the provisions of such section which  relate  to
the alternative minimum tax measured by taxable assets shall continue to
apply  to  all taxpayers for taxable years beginning on or after January
1, [2010] 2011;
  S 4. Extension of Gramm-Leach-Bliley transitional provisions.   Refer-
ences  in  subsection (m) of section 1452 of the tax law and subdivision
(1) of section 11-640 of the administrative code of the city of New York
to January 1, 2008 shall be read as January 1, 2010  and  references  in
those provisions to January 1, 2010 shall be read as January 1, 2011, as
if  those dates were specifically referenced in those provisions of law.
References in subparagraph (iv) of paragraph (2) of  subsection  (f)  of
section  1462  of  the  tax  law and subparagraph (iv) of paragraph 2 of
subdivision (f) of section 11-646 of the administrative code of the city
of New York to January 1, 2010 shall be read as January 1, 2011,  as  if
that  date  was specifically referenced in those provisions of law.  The
legislative bill drafting commission is hereby  directed  to  effectuate
this  provision,  and  shall  be  guided  by a memorandum of instruction
setting forth the specific provisions of law to be amended.  Such  memo-
randum  shall be transmitted to the legislative bill drafting commission
within thirty days of enactment of this provision. Such memorandum shall
be issued jointly by  the  governor,  the  temporary  president  of  the
senate, and the speaker of the assembly, or by the delegate of each.
  S  5.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after January 1, 2010.

                                 PART Z

  Section 1. This act enacts into law major  components  of  legislation
relating  to  tax  enforcement,  sales  tax  avoidance and statements of
industrial  agencies  and  their  agents.    Each  component  is  wholly
contained  within  a  Subpart  identified  as  Subparts A through C. The
effective date for  each  particular  provision  contained  within  such

S. 6610--A                         90                         A. 9710--A

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 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 Subpart in  which  it
is  found.  Section  three  of this act sets forth the general effective
date of this act.

                                SUBPART A

  Section 1. The tax law is amended by adding two new sections 1808  and
1809 to read as follows:
  S  1808. PERSONAL INCOME AND EARNINGS TAXES; REPEATED FAILURE TO FILE.
(A) ANY PERSON WHO, WITH INTENT TO EVADE  PAYMENT  OF  ANY  TAX  IMPOSED
UNDER  ARTICLE TWENTY-TWO OF THIS CHAPTER OR ANY RELATED INCOME OR EARN-
INGS TAX STATUTE, FAILS TO FILE A RETURN FOR THREE  CONSECUTIVE  TAXABLE
YEARS SHALL BE GUILTY OF A CLASS E FELONY, PROVIDED THAT SUCH PERSON HAD
AN  UNPAID  TAX  LIABILITY WITH RESPECT TO EACH OF THE THREE CONSECUTIVE
TAXABLE YEARS.
  (B) IN ANY PROSECUTION FOR A VIOLATION  OF  SUBDIVISION  (A)  OF  THIS
SECTION,  IT  SHALL  BE  A  DEFENSE THAT THE DEFENDANT HAD NO UNPAID TAX
LIABILITY FOR ANY OF THE THREE CONSECUTIVE TAXABLE YEARS.
  (C) AS USED IN THIS SUBDIVISION, THE TERM "RETURN" SHALL MEAN A RETURN
REQUIRED UNDER SECTION SIX HUNDRED FIFTY-ONE OF  THIS  CHAPTER,  SECTION
11-1751  OF  THE  ADMINISTRATIVE CODE OF THE CITY OF NEW YORK OR SECTION
92-85 OR 92-105 OF THE CODES AND ORDINANCES OF THE CITY OF  YONKERS.  IT
SHALL  NOT  INCLUDE ANY INFORMATION RETURN REFERRED TO IN SUBSECTION (I)
OF SECTION SIX HUNDRED FIFTY-ONE OF THIS CHAPTER, OR SUBDIVISION (I)  OF
SECTION  11-1751  OF  SUCH CODE, OR SUBDIVISION (G) OF SECTION 92-105 OF
SUCH CODES AND ORDINANCES, OR SECTION SIX HUNDRED  FIFTY-EIGHT  OF  THIS
CHAPTER  OR SECTION 11-1758 OF SUCH CODE OR SECTION 92-111 OF SUCH CODES
AND ORDINANCES, OR ANY EMPLOYER'S RETURN REQUIRED BY SECTION SIX HUNDRED
SEVENTY-FOUR OF THIS CHAPTER OR SECTION 11-1774 OF SUCH CODE.
  S 1809. CORPORATE TAXES; REPEATED FAILURE TO FILE. (A) ANY PERSON WHO,
WITH INTENT TO EVADE PAYMENT OF  ANY  TAX  IMPOSED  UNDER  ARTICLE  NINE
(OTHER THAN UNDER SECTION ONE HUNDRED EIGHTY OR ONE HUNDRED EIGHTY-ONE),
NINE-A,  THIRTEEN,  THIRTY-TWO,  THIRTY-THREE  OR THIRTY-THREE-A OF THIS
CHAPTER, FAILS TO FILE A RETURN OR REPORT FOR THREE CONSECUTIVE  TAXABLE
YEARS SHALL BE GUILTY OF A CLASS E FELONY, PROVIDED THAT SUCH PERSON HAD
AN  UNPAID TAX LIABILITY, IN EXCESS OF THE THRESHOLD AMOUNT WITH RESPECT
TO EACH OF THE THREE CONSECUTIVE TAXABLE YEARS. THE THRESHOLD AMOUNT  IN
THE  CASE  OF A TAXABLE YEAR UNDER ARTICLE NINE-A OF THIS CHAPTER ENDING
AFTER JUNE THIRTIETH, NINETEEN HUNDRED  EIGHTY-NINE  IS  THE  APPLICABLE
FIXED  DOLLAR  MINIMUM PRESCRIBED UNDER PARAGRAPH (D) OF SUBDIVISION ONE
OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.  IN  THE  EVENT  SUCH  FIXED
DOLLAR  MINIMUM  IS  LESS  THAN TWO HUNDRED FIFTY DOLLARS, THE THRESHOLD
AMOUNT IN THE CASE OF SUCH TAXABLE YEAR IS TWO HUNDRED FIFTY DOLLARS. IN
ALL OTHER CASES THE THRESHOLD AMOUNT IS TWO HUNDRED FIFTY DOLLARS.
  (B) IN ANY PROSECUTION FOR A VIOLATION  OF  SUBDIVISION  (A)  OF  THIS
SECTION,  IT  SHALL  BE  A  DEFENSE THAT THE DEFENDANT HAD NO UNPAID TAX
LIABILITY FOR ANY OF THE THREE CONSECUTIVE TAXABLE YEARS.
  (C) AS USED IN THIS SECTION, THE TERMS  "RETURN"  AND  "REPORT"  SHALL
MEAN  A  RETURN OR REPORT REQUIRED UNDER SECTION ONE HUNDRED NINETY-TWO,
TWO HUNDRED ELEVEN, TWO HUNDRED NINETY-FOUR, FOURTEEN HUNDRED SIXTY-TWO,
FIFTEEN HUNDRED FIFTEEN OR FIFTEEN HUNDRED FIFTY-FOUR OF  THIS  CHAPTER.
IT  SHALL  NOT  INCLUDE  ANY RETURN OR REPORT REFERRED TO IN SECTION ONE

S. 6610--A                         91                         A. 9710--A

HUNDRED NINETY-SEVEN-A, TWO HUNDRED THIRTEEN-A, FOURTEEN  HUNDRED  SIXTY
OR FIFTEEN HUNDRED THIRTEEN OF THIS CHAPTER.
  S  2.  Paragraph (b) of subdivision 3-a of section 170 of the tax law,
as amended by section 1 of subpart C of part V-1 of chapter  57  of  the
laws of 2009, is 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.  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, 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. The commissioner shall notify the division of tax
appeals when any person requests a conference or requests to discontinue
such conference.
  S  3.  Paragraph (h) of subdivision 3-a of section 170 of the tax law,
as added by section 2 of subpart C of part V-1 of chapter 57 of the laws
of 2009, is amended 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
other  credential issued under the authority of this chapter EXCLUDING A
CERTIFICATE OF REGISTRATION  OF  A  RETAIL  DEALER  UNDER  SECTION  FOUR
HUNDRED  EIGHTY-A 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 FOR REGISTRATION AS A
RETAIL DEALER UNDER SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER AND 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] THE MAILING of that notice.
  S  4.  Paragraphs  (a) and (b) of subdivision 2 of section 2008 of the
tax law, as added by section 3 of subpart C of part V-1 of chapter 57 of
the laws of 2009, are amended to read as follows:
  (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 EXCLUDING A CERTIFICATE OF REGISTRATION OF A RETAIL DEALER UNDER
SECTION FOUR HUNDRED EIGHTY-A 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  FOR
REGISTRATION  AS  A RETAIL DEALER UNDER SECTION FOUR HUNDRED EIGHTY-A OF
THIS CHAPTER AND an application to  renew  a  certificate  of  authority
filed pursuant to paragraph five of subdivision (a) of section one thou-
sand  one  hundred  thirty-four  of  this chapter and any other law, or,
(iii) the imposition of a fraud penalty under this chapter, must file  a
petition  with  the  division  of  tax  appeals  within  thirty  days of
[receipt] THE MAILING of that notice (unless that person has requested a
conciliation conference as provided in subdivision  three-a  of  section

S. 6610--A                         92                         A. 9710--A

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] A PARTY that delays the expedited hearing
process will extend the time limitations imposed on the tribunal or  the
administrative  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.
  S  5. Section 1807 of the tax law, as added by section 21 of subpart I
of part V-1 of chapter 57 of the laws of 2009, is  amended  to  read  as
follows:
  S  1807.  Aggregation.  For purposes of this article, the payments due
and not paid under A SINGLE 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  6. Section 34 of subpart I of part V-1 of chapter 57 of the laws of
2009, amending the criminal procedure law, the penal law,  and  the  tax
law  relating  to creating the offense of "tax fraud act", is amended to
read as follows:
  S 34. This act shall take effect immediately and SECTIONS TWO  THROUGH
THIRTY-THREE  OF THIS ACT SHALL apply to offenses committed on and after
such effective date.
  S 7. This act shall take effect  immediately;  provided  however  that
section  one  of this act shall apply to offenses committed on and after
such effective date.

                                SUBPART B

  Section 1. Subparagraph (iv) of paragraph  4  of  subdivision  (b)  of
section 1101 of the tax law, as added by chapter 93 of the laws of 1965,
clause  (B)  as amended by chapter 575 of the laws of 1965 and as renum-
bered by chapter 2 of the laws of 1995, is amended to read as follows:
  (iv) (A) The term retail sale does not include:
  [(A)] (I) The transfer of tangible personal property to a corporation,
solely in consideration for the issuance of its  stock,  pursuant  to  a
merger  or consolidation effected under the law of New York or any other
jurisdiction.
  [(B)] (II) The distribution of property by a corporation to its stock-
holders as a liquidating dividend.
  [(C)] (III) The distribution of property by a partnership to its part-
ners in whole or partial liquidation.
  [(D)] (IV) The transfer of property to a corporation upon  its  organ-
ization in consideration for the issuance of its stock.
  [(E)]  (V)  The contribution of property to a partnership in consider-
ation for a partnership interest therein.
  (B) FOR AN EXCEPTION APPLICABLE TO THIS SUBPARAGRAPH, SEE  SUBDIVISION
(Q) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.

S. 6610--A                         93                         A. 9710--A

  S  2.  Paragraph 17 of subdivision (b) of section 1101 of the tax law,
as amended by section 1 of part N-1 of chapter 57 of the laws  of  2009,
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  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, offi-
cers, members, partners, managers or directors  of  affiliated  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 affil-
iated  persons  with  respect  to  each other.   FOR AN EXCEPTION TO THE
EXCLUSIONS FROM THE DEFINITION OF "RETAIL SALE" APPLICABLE TO  AIRCRAFT,
SEE SUBDIVISION (Q) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.
  S  3.  Section 1111 of the tax law is amended by adding a new subdivi-
sion (q) to read as follows:
  (Q) (1) THE EXCLUSIONS FROM THE DEFINITION OF RETAIL SALE IN  SUBPARA-
GRAPH  (IV)  OF  PARAGRAPH  FOUR  OF  SUBDIVISION  (B) OF SECTION ELEVEN
HUNDRED ONE OF THIS ARTICLE SHALL NOT APPLY TO TRANSFERS, DISTRIBUTIONS,
OR CONTRIBUTIONS OF AN AIRCRAFT OR VESSEL, EXCEPT WHERE, IN THE CASE  OF
THE  EXCLUSION IN SUBCLAUSE (I) OF CLAUSE (A) OF SUCH SUBPARAGRAPH (IV),
THE TWO CORPORATIONS TO BE MERGED OR  CONSOLIDATED  ARE  NOT  AFFILIATED
PERSONS  WITH  RESPECT TO EACH OTHER.  FOR PURPOSES OF THIS SUBDIVISION,
CORPORATIONS ARE AFFILIATED PERSONS WITH RESPECT TO EACH OTHER WHERE (I)
MORE THAN FIVE PERCENT OF THEIR COMBINED SHARES ARE OWNED BY MEMBERS  OF
THE  SAME  FAMILY,  AS  DEFINED  BY  PARAGRAPH FOUR OF SUBSECTION (C) OF
SECTION TWO HUNDRED SIXTY-SEVEN OF THE INTERNAL REVENUE CODE OF NINETEEN
HUNDRED EIGHTY-SIX; (II) ONE OF THE CORPORATIONS HAS AN OWNERSHIP INTER-
EST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN THE OTHER;
OR (III) ANOTHER PERSON OR A GROUP OF OTHER PERSONS THAT ARE  AFFILIATED
PERSONS  WITH  RESPECT  TO EACH OTHER HOLD AN OWNERSHIP INTEREST OF MORE
THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN  EACH  OF  THE  CORPO-
RATIONS.
  (2)  NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, IN RELATION TO ANY
TRANSFER, DISTRIBUTION, OR CONTRIBUTION OF AN AIRCRAFT  OR  VESSEL  THAT
QUALIFIES AS A RETAIL SALE AS A RESULT OF PARAGRAPH ONE OF THIS SUBDIVI-
SION, THE SALES TAX IMPOSED BY SUBDIVISION (A) OF SECTION ELEVEN HUNDRED
FIVE  OF  THIS  PART  SHALL  BE COMPUTED BASED ON THE PRICE AT WHICH THE
SELLER PURCHASED THE TANGIBLE PERSONAL PROPERTY, PROVIDED THAT WHERE THE
SELLER OR PURCHASER AFFIRMATIVELY SHOWS THAT THE SELLER OWNED THE  PROP-
ERTY  FOR  SIX  MONTHS  PRIOR  TO  MAKING  THE TRANSFER, DISTRIBUTION OR
CONTRIBUTION COVERED BY PARAGRAPH ONE OF THIS SUBDIVISION, SUCH AIRCRAFT
OR VESSEL SHALL BE TAXED ON THE BASIS OF THE CURRENT MARKET VALUE OF THE
AIRCRAFT OR VESSEL AT  THE  TIME  OF  THAT  TRANSFER,  DISTRIBUTION,  OR
CONTRIBUTION.  FOR  THE  PURPOSES OF THE PRIOR SENTENCE, "CURRENT MARKET
VALUE" SHALL NOT EXCEED THE COST OF THE AIRCRAFT OR VESSEL. SEE SUBDIVI-
SION (B) OF THIS SECTION FOR A SIMILAR RULE ON THE  COMPUTATION  OF  ANY
COMPENSATING  USE  TAX DUE UNDER SECTION ELEVEN HUNDRED TEN OF THIS PART
ON SUCH TRANSFERS, DISTRIBUTIONS, OR CONTRIBUTIONS.
  (3) A PURCHASER OF AN AIRCRAFT OR VESSEL COVERED BY PARAGRAPH  ONE  OF
THIS  SUBDIVISION  WILL  BE  ENTITLED  TO A REFUND OR CREDIT AGAINST THE
SALES OR COMPENSATING USE TAX DUE AS A RESULT OF  A  TRANSFER,  DISTRIB-
UTION,  OR  CONTRIBUTION OF SUCH AIRCRAFT OR VESSEL IN THE AMOUNT OF ANY

S. 6610--A                         94                         A. 9710--A

SALES OR USE TAX PAID TO THIS STATE OR ANY OTHER STATE ON  THE  SELLER'S
PURCHASE OR USE OF THE AIRCRAFT OR VESSEL SO TRANSFERRED, DISTRIBUTED OR
CONTRIBUTED,  BUT  NOT  TO  EXCEED THE TAX DUE ON THE TRANSFER, DISTRIB-
UTION,  OR  CONTRIBUTION OF THE AIRCRAFT OR VESSEL OR ON THE PURCHASER'S
USE IN THE STATE OF THE AIRCRAFT OR VESSEL SO  TRANSFERRED,  DISTRIBUTED
OR CONTRIBUTED.  AN APPLICATION FOR A REFUND OR CREDIT UNDER THIS SUBDI-
VISION  MUST  BE FILED AND SHALL BE IN SUCH FORM AS THE COMMISSIONER MAY
PRESCRIBE. WHERE AN APPLICATION FOR CREDIT HAS BEEN FILED, THE APPLICANT
MAY IMMEDIATELY TAKE SUCH CREDIT ON THE RETURN WHICH IS  DUE  COINCIDENT
WITH OR IMMEDIATELY SUBSEQUENT TO THE TIME THE APPLICATION FOR CREDIT IS
FILED.  HOWEVER,  THE TAKING OF THE CREDIT ON THE RETURN SHALL BE DEEMED
TO BE PART OF THE APPLICATION FOR CREDIT.  PROVIDED THAT THE COMMISSION-
ER MAY, IN HIS OR HER DISCRETION  AND  NOTWITHSTANDING  ANY  OTHER  LAW,
WAIVE  THE  APPLICATION  REQUIREMENT  FOR  ANY OR ALL CLASSES OF PERSONS
WHERE THE AMOUNT OF THE CREDIT OR REFUND IS EQUAL TO THE AMOUNT  OF  THE
TAX  DUE  FROM THE PURCHASER.   THE PROVISIONS OF SUBDIVISIONS (A), (B),
AND (C) OF SECTION ELEVEN HUNDRED  THIRTY-NINE  OF  THIS  ARTICLE  SHALL
APPLY  TO  APPLICATIONS  FOR REFUND OR CREDIT UNDER THIS SUBDIVISION. NO
INTEREST SHALL BE ALLOWED OR PAID ON ANY REFUND MADE OR  CREDIT  ALLOWED
UNDER THIS SUBDIVISION. IF A REFUND IS GRANTED OR A CREDIT ALLOWED UNDER
THIS  PARAGRAPH,  THE  SELLER  OR  PURCHASER SHALL NOT BE ELIGIBLE FOR A
REFUND OR CREDIT PURSUANT TO SUBDIVISION SEVEN OF SECTION ELEVEN HUNDRED
EIGHTEEN OF THIS ARTICLE WITH REGARD TO THE SAME PURCHASE OR USE.
  S 4. Subdivision 2 of section 1118 of  the  tax  law,  as  amended  by
section  2  of part N-1 of chapter 57 of the laws of 2009, 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
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.  FOR AN EXCEPTION TO THE EXCLUSIONS FROM THE
DEFINITION OF "RETAIL SALE" APPLICABLE  TO  AIRCRAFT  AND  VESSELS,  SEE
SUBDIVISION (Q) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.
  S  5.  This  act shall take effect on June 1, 2010, 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, provided that sales or use tax paid on the seller's purchase or

S. 6610--A                         95                         A. 9710--A

use of the aircraft or vessel transferred,  distributed  or  contributed
may  be refunded or credited as authorized by the new subdivision (q) of
section 1111 of the tax law, as added by  section  three  of  this  act,
regardless  of  the  date  on  which  the  seller  purchased or used the
aircraft or vessel.

                                SUBPART C

  Section 1. Section 874 of the general  municipal  law  is  amended  by
adding a new subdivision 9 to read as follows:
  (9)  WITHIN  THIRTY  DAYS  OF  THE  DATE  THAT THE AGENCY DESIGNATES A
PROJECT OPERATOR OR OTHER PERSON TO ACT  AS  AGENT  OF  THE  AGENCY  FOR
PURPOSES  OF  PROVIDING FINANCIAL ASSISTANCE CONSISTING OF ANY SALES AND
COMPENSATING USE TAX EXEMPTION TO SUCH PERSON, THE AGENCY SHALL  FILE  A
STATEMENT  WITH THE DEPARTMENT OF TAXATION AND FINANCE RELATING THERETO,
ON A FORM AND IN SUCH MANNER AS IS PRESCRIBED  BY  THE  COMMISSIONER  OF
TAXATION  AND FINANCE, IDENTIFYING EACH SUCH AGENT SO NAMED BY THE AGEN-
CY, SETTING FORTH THE TAXPAYER IDENTIFICATION NUMBER OF EACH SUCH AGENT,
GIVING A BRIEF DESCRIPTION OF THE PROPERTY AND/OR SERVICES  INTENDED  TO
BE  EXEMPTED  FROM  SUCH TAXES AS A RESULT OF SUCH APPOINTMENT AS AGENT,
INDICATING THE AGENCY'S ROUGH ESTIMATE OF  THE  VALUE  OF  THE  PROPERTY
AND/OR  SERVICES  TO WHICH SUCH APPOINTMENT AS AGENT RELATES, INDICATING
THE DATE WHEN SUCH DESIGNATION AS AGENT BECAME EFFECTIVE AND  INDICATING
THE DATE UPON WHICH SUCH DESIGNATION AS AGENT SHALL CEASE.
  S  2.  Section 1963 of the public authorities law is amended by adding
two new subdivisions 3 and 4 to read as follows:
  3. AGENTS OF THE AUTHORITY AND PROJECT OPERATORS SHALL ANNUALLY FILE A
STATEMENT WITH THE DEPARTMENT OF TAXATION AND FINANCE, ON A FORM AND  IN
SUCH  A  MANNER  AS  IS  PRESCRIBED  BY THE COMMISSIONER OF TAXATION AND
FINANCE, OF THE VALUE OF ALL SALES AND USE  TAX  EXEMPTIONS  CLAIMED  BY
SUCH  AGENTS  OR  AGENTS OF SUCH AGENTS OR PROJECT OPERATORS, INCLUDING,
BUT NOT LIMITED TO, CONSULTANTS OR  SUBCONTRACTORS  OF  SUCH  AGENTS  OR
PROJECT OPERATORS, UNDER THE AUTHORITY GRANTED PURSUANT TO THIS SECTION.
THE  PENALTY  FOR FAILURE TO FILE SUCH STATEMENT SHALL BE THE REMOVAL OF
THE AUTHORITY TO ACT AS AN AGENT OF THE AUTHORITY OR AS A PROJECT OPERA-
TOR.
  4. WITHIN THIRTY DAYS OF THE DATE  THAT  THE  AUTHORITY  DESIGNATES  A
PROJECT  OPERATOR  OR  OTHER PERSON TO ACT AS AGENT OF THE AUTHORITY FOR
PURPOSES OF PROVIDING FINANCIAL ASSISTANCE CONSISTING OF ANY  SALES  AND
COMPENSATING  USE  TAX EXEMPTION TO SUCH PERSON, THE AGENCY SHALL FILE A
STATEMENT WITH THE DEPARTMENT OF TAXATION AND FINANCE RELATING  THERETO,
ON  A  FORM  AND  IN SUCH MANNER AS IS PRESCRIBED BY THE COMMISSIONER OF
TAXATION AND FINANCE, IDENTIFYING  EACH  SUCH  AGENT  SO  NAMED  BY  THE
AUTHORITY, SETTING FORTH THE TAXPAYER IDENTIFICATION NUMBER OF EACH SUCH
AGENT,  GIVING  A  BRIEF  DESCRIPTION  OF  THE  PROPERTY AND/OR SERVICES
INTENDED TO BE EXEMPTED FROM SUCH TAXES AS A RESULT OF SUCH  APPOINTMENT
AS  AGENT, INDICATING THE AUTHORITY'S ROUGH ESTIMATE OF THE VALUE OF THE
PROPERTY AND/OR SERVICES TO WHICH SUCH  APPOINTMENT  AS  AGENT  RELATES,
INDICATING  THE DATE WHEN SUCH DESIGNATION AS AGENT BECAME EFFECTIVE AND
INDICATING THE DATE UPON WHICH SUCH DESIGNATION AS AGENT SHALL CEASE.
  S 3. Section 2326 of the public authorities law is amended  by  adding
two new subdivisions 3 and 4 to read as follows:
  3. AGENTS OF THE AUTHORITY AND PROJECT OPERATORS SHALL ANNUALLY FILE A
STATEMENT  WITH THE DEPARTMENT OF TAXATION AND FINANCE, ON A FORM AND IN
SUCH A MANNER AS IS PRESCRIBED  BY  THE  COMMISSIONER  OF  TAXATION  AND
FINANCE,  OF  THE  VALUE  OF ALL SALES AND USE TAX EXEMPTIONS CLAIMED BY

S. 6610--A                         96                         A. 9710--A

SUCH AGENTS OR AGENTS OF SUCH AGENTS OR  PROJECT  OPERATORS,  INCLUDING,
BUT  NOT  LIMITED  TO,  CONSULTANTS  OR SUBCONTRACTORS OF SUCH AGENTS OR
PROJECT OPERATORS, UNDER THE AUTHORITY GRANTED PURSUANT TO THIS SECTION.
THE  PENALTY  FOR FAILURE TO FILE SUCH STATEMENT SHALL BE THE REMOVAL OF
THE AUTHORITY TO ACT AS AN AGENT OF THE AUTHORITY OR AS A PROJECT OPERA-
TOR.
  4. WITHIN THIRTY DAYS OF THE DATE  THAT  THE  AUTHORITY  DESIGNATES  A
PROJECT  OPERATOR  OR  OTHER PERSON TO ACT AS AGENT OF THE AUTHORITY FOR
PURPOSES OF PROVIDING FINANCIAL ASSISTANCE CONSISTING OF ANY  SALES  AND
COMPENSATING  USE  TAX EXEMPTION TO SUCH PERSON, THE AGENCY SHALL FILE A
STATEMENT WITH THE DEPARTMENT OF TAXATION AND FINANCE RELATING  THERETO,
ON  A  FORM  AND  IN SUCH MANNER AS IS PRESCRIBED BY THE COMMISSIONER OF
TAXATION AND FINANCE, IDENTIFYING  EACH  SUCH  AGENT  SO  NAMED  BY  THE
AUTHORITY, SETTING FORTH THE TAXPAYER IDENTIFICATION NUMBER OF EACH SUCH
AGENT,  GIVING  A  BRIEF  DESCRIPTION  OF  THE  PROPERTY AND/OR SERVICES
INTENDED TO BE EXEMPTED FROM SUCH TAXES AS A RESULT OF SUCH  APPOINTMENT
AS  AGENT, INDICATING THE AUTHORITY'S ROUGH ESTIMATE OF THE VALUE OF THE
PROPERTY AND/OR SERVICES TO WHICH SUCH  APPOINTMENT  AS  AGENT  RELATES,
INDICATING  THE DATE WHEN SUCH DESIGNATION AS AGENT BECAME EFFECTIVE AND
INDICATING THE DATE UPON WHICH SUCH DESIGNATION AS AGENT SHALL CEASE.
  S 4. This act shall take effect immediately, provided, however, that:
  (a) section one of this act shall be deemed to have been in full force
and effect on and after January 31, 2008;
  (b) sections two and three of this act shall be deemed to have been in
full force and effect on and after January 1, 2010; and
  (c) any statement of an industrial development agency or authority  to
the department of taxation and finance required by this act with respect
to  having  appointed  an agent or project operator before the effective
date of this act shall be deemed timely if it is filed within 90 days of
such date.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included herein.
  S  3.  This  act shall take effect immediately provided, however, that
the applicable effective date of Subparts A through C of this act  shall
be as specifically set forth in the last section of such Subparts.

                                 PART AA

  Section  1.  Paragraph  (a)  of  subdivision  1 of section 1003 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  1
of  part  L-1  of  chapter 57 of the laws of 2009, is amended to read as
follows:
  (a) Any  racing  association  or  corporation  or  regional  off-track
betting  corporation,  authorized  to conduct pari-mutuel wagering under
this chapter, desiring to display the simulcast of horse races on  which
pari-mutuel  betting shall be permitted in the manner and subject to the
conditions provided for in this article may apply to  the  board  for  a
license so to do. Applications for licenses shall be in such form as may
be  prescribed  by the board and shall contain such information or other

S. 6610--A                         97                         A. 9710--A

material or evidence as the board  may  require.  No  license  shall  be
issued  by the board authorizing the simulcast transmission of thorough-
bred races from a track located in Suffolk  county.  The  fee  for  such
licenses  shall  be five hundred dollars per simulcast facility per year
payable by the licensee to the board for deposit into the general  fund.
Except  as  provided herein, the board shall not approve any application
to conduct simulcasting into individual or group  residences,  homes  or
other areas for the purposes of or in connection with pari-mutuel wager-
ing.  The board may approve simulcasting into residences, homes or other
areas to be conducted jointly by one or more regional off-track  betting
corporations and one or more of the following: a franchised corporation,
thoroughbred racing corporation or a harness racing corporation or asso-
ciation;  provided  (i) the simulcasting consists only of those races on
which pari-mutuel betting is authorized by this chapter at one  or  more
simulcast  facilities  for  each  of  the  contracting off-track betting
corporations which shall include wagers made in accordance with  section
one thousand fifteen, one thousand sixteen and one thousand seventeen of
this  article;  provided  further  that the contract provisions or other
simulcast arrangements for such simulcast  facility  shall  be  no  less
favorable than those in effect on January first, two thousand five; (ii)
that  each  off-track  betting  corporation having within its geographic
boundaries such residences, homes or other areas technically capable  of
receiving  the  simulcast signal shall be a contracting party; (iii) the
distribution of revenues shall be subject to  contractual  agreement  of
the  parties  except that statutory payments to non-contracting parties,
if any, may not be reduced; provided, however, that  nothing  herein  to
the  contrary  shall  prevent  a  track  from televising its races on an
irregular basis primarily for promotional or marketing purposes as found
by the board. For purposes of this paragraph, the provisions of  section
one  thousand  thirteen  of  this article shall not apply. Any agreement
authorizing an in-home simulcasting experiment commencing prior  to  May
fifteenth,  nineteen  hundred  ninety-five,  may,  and all its terms, be
extended until June thirtieth,  two  thousand  [ten]  ELEVEN;  provided,
however,  that  any  party to such agreement may elect to terminate such
agreement upon conveying written notice to all  other  parties  of  such
agreement  at  least  forty-five days prior to the effective date of the
termination, via registered mail. Any party to  an  agreement  receiving
such  notice of an intent to terminate, may request the board to mediate
between the parties new terms and conditions in a replacement  agreement
between the parties as will permit continuation of an in-home experiment
until  June  thirtieth,  two  thousand [ten] ELEVEN; and (iv) no in-home
simulcasting in the thoroughbred special betting  district  shall  occur
without the approval of the regional thoroughbred track.
  S  2.  Subparagraph  (iii)  of paragraph d of subdivision 3 of section
1007 of the racing, pari-mutuel wagering and breeding law, as amended by
section 2 of part L-1 of chapter 57 of the laws of 2009, is  amended  to
read as follows:
  (iii) Of the sums retained by a receiving track located in Westchester
county  on  races received from a franchised corporation, for the period
commencing January first, two thousand eight and continuing through June
thirtieth, two thousand [ten] ELEVEN, the amount  used  exclusively  for
purses to be awarded at races conducted by such receiving track shall be
computed  as  follows: of the sums so retained, two and one-half percent
of the total pools. Such amount shall be increased or decreased  in  the
amount  of  fifty  percent of the difference in total commissions deter-
mined by comparing the total commissions available  after  July  twenty-

S. 6610--A                         98                         A. 9710--A

first,  nineteen hundred ninety-five to the total commissions that would
have been available to such track prior to July  twenty-first,  nineteen
hundred ninety-five.
  S  3.  The  opening  paragraph of subdivision 1 of section 1014 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  3
of  part  L-1  of  chapter 57 of the laws of 2009, is amended to read as
follows:
  The provisions of this section shall govern the simulcasting of  races
conducted  at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is conducting a race meet-
ing in Saratoga county at Saratoga  thoroughbred  racetrack  until  June
thirtieth, two thousand [ten] ELEVEN and on any day regardless of wheth-
er or not a franchised corporation is conducting a race meeting in Sara-
toga county at Saratoga thoroughbred racetrack after June thirtieth, two
thousand  [ten] ELEVEN. On any day on which a franchised corporation has
not scheduled a racing program but  a  thoroughbred  racing  corporation
located  within  the state is conducting racing, every off-track betting
corporation branch office and every simulcasting  facility  licensed  in
accordance  with  section  one  thousand seven (that have entered into a
written agreement with such facility's representative horsemen's  organ-
ization,  as approved by the board), one thousand eight, or one thousand
nine of this article shall be authorized to accept  wagers  and  display
the  live  simulcast  signal from thoroughbred tracks located in another
state or foreign country subject to the following provisions:
  S 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
and breeding law, as amended by section 4 of part L-1 of chapter  57  of
the laws of 2009, is amended to read as follows:
  1.  The  provisions  of  this section shall govern the simulcasting of
races conducted at harness tracks located in another  state  or  country
during  the period July first, nineteen hundred ninety-four through June
thirtieth, two thousand [ten] ELEVEN.  This section shall supersede  all
inconsistent provisions of this chapter.
  S  5.  The  opening  paragraph of subdivision 1 of section 1016 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  5
of  part  L-1  of  chapter 57 of the laws of 2009, is amended to read as
follows:
  The provisions of this section shall govern the simulcasting of  races
conducted  at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is not conducting  a  race
meeting in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth,  two  thousand [ten] ELEVEN.   Every off-track betting corpo-
ration branch office and every simulcasting facility licensed in accord-
ance with section one thousand seven that have entered  into  a  written
agreement with such facility's representative horsemen's organization as
approved  by  the board, one thousand eight or one thousand nine of this
article shall be authorized to accept wagers and display the live  full-
card  simulcast signal of thoroughbred tracks (which may include quarter
horse or mixed meetings provided that all such wagering  on  such  races
shall be construed to be thoroughbred races) located in another state or
foreign country, subject to the following provisions; provided, however,
no  such written agreement shall be required of a franchised corporation
licensed in accordance with section one thousand seven of this article:
  S 6. The opening paragraph of section 1018 of the racing,  pari-mutuel
wagering  and breeding law, as amended by section 6 of part L-1 of chap-
ter 57 of the laws of 2009, is amended to read as follows:

S. 6610--A                         99                         A. 9710--A

  Notwithstanding any other provision of this chapter,  for  the  period
July  twenty-fifth, two thousand one through September eighth, two thou-
sand [nine] TEN, when a franchised  corporation  is  conducting  a  race
meeting  within  the  state  at  Saratoga  Race  Course, every off-track
betting  corporation  branch  office  and  every  simulcasting  facility
licensed in accordance with section one thousand seven (that has entered
into a written agreement with such facility's representative  horsemen's
organization  as approved by the board), one thousand eight or one thou-
sand nine of this article shall  be  authorized  to  accept  wagers  and
display  the  live  simulcast signal from thoroughbred tracks located in
another state, provided that such facility shall accept wagers on  races
run  at  all  in-state  thoroughbred  tracks which are conducting racing
programs subject to the following provisions; provided, however, no such
written agreement shall be required of a franchised corporation licensed
in accordance with section one thousand seven of this article.
  S 7. Section 32 of chapter 281 of  the  laws  of  1994,  amending  the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting,  as  amended by section 7 of part L-1 of chapter 57 of the
laws of 2009, is amended to read as follows:
  S 32. This act shall take effect immediately and the  pari-mutuel  tax
reductions  in  section  six  of  this  act  shall  expire and be deemed
repealed on  July  1,  [2010]  2011;  provided,  however,  that  nothing
contained  herein  shall be deemed to affect the application, qualifica-
tion, expiration, or repeal of any  provision  of  law  amended  by  any
section  of  this act, and such provisions shall be applied or qualified
or shall expire or be deemed repealed in the same manner,  to  the  same
extent  and on the same date as the case may be as otherwise provided by
law; provided further, however, that sections twenty-three  and  twenty-
five of this act shall remain in full force and effect only until May 1,
1997 and at such time shall be deemed to be repealed.
  S  8.  Section  54  of  chapter  346 of the laws of 1990, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting and the imposition of certain taxes, as amended by  section
8  of  part L-1 of chapter 57 of the laws of 2009, is amended to read as
follows:
  S 54. This act  shall  take  effect  immediately;  provided,  however,
sections  three  through twelve of this act shall take effect on January
1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
ing law, as added by section thirty-eight of this act, shall expire  and
be  deemed repealed on July 1, [2010] 2011; and section eighteen of this
act shall take effect on July 1, 2008 and sections fifty-one and  fifty-
two  of this act shall take effect as of the same date as chapter 772 of
the laws of 1989 took effect.
  S 9. Paragraph (a) of subdivision 1 of  section  238  of  the  racing,
pari-mutuel  wagering  and breeding law, as amended by section 9 of part
L-1 of chapter 57 of the laws of 2009, is amended to read as follows:
  (a) The  franchised  corporation  authorized  under  this  chapter  to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute  all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets be presented for  payment
before  April  first  of  the year following the year of their purchase,
less an amount which shall be established and  retained  by  such  fran-
chised  corporation  of  between  sixteen to seventeen per centum of the
total deposits in pools resulting from on-track regular bets, and  eigh-
teen  and  one-half  to  twenty-one  per centum of the total deposits in
pools resulting from on-track multiple bets and twenty-six per centum of

S. 6610--A                         100                        A. 9710--A

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 [ten] ELEVEN, such tax on
all wagers shall be one and six-tenths per centum, plus,  in  each  such
period,  twenty  per centum of the breaks. Payment to the New York state
thoroughbred breeding and development fund  by  such  franchised  corpo-
ration shall be one-half of one per centum of total daily on-track pari-
mutuel  pools resulting from regular, multiple and exotic bets and three
per centum of super exotic bets provided, however, that for  the  period
September  tenth,  nineteen  hundred  ninety-nine  through March thirty-
first, two thousand one, such payment shall be  six-tenths  of  one  per
centum  of  regular,  multiple and exotic pools and for the period April
first, two thousand one  through  December  thirty-first,  two  thousand
[ten]  ELEVEN,  such  payment shall be seven-tenths of one per centum of
such pools.
  S 10. Paragraph (a) of subdivision 1 of section  238  of  the  racing,
pari-mutuel  wagering and breeding law, as amended by section 10 of part
L-1 of chapter 57 of the laws of 2009, is amended to read as follows:
  (a) The  franchised  corporation  authorized  under  this  chapter  to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute  all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets be presented for  payment
before  April  first  of  the year following the year of their purchase,

S. 6610--A                         101                        A. 9710--A

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 [ten] ELEVEN,  such  tax  on
all  wagers  shall  be one and six-tenths per centum, plus, in each such
period, twenty per centum of the breaks. Payment to the New  York  state
thoroughbred  breeding  and  development  fund by such franchised corpo-
ration shall be one-half of one per centum of total daily on-track pari-
mutuel pools resulting from regular, multiple and exotic bets and  three
per  centum  of super exotic bets provided, however, that for the period
September tenth, nineteen  hundred  ninety-nine  through  March  thirty-
first,  two  thousand  one,  such payment shall be six-tenths of one per
centum of regular, multiple and exotic pools and for  the  period  April
first,  two  thousand  one  through  December thirty-first, two thousand
[ten] ELEVEN, such payment shall be seven-tenths of one  per  centum  of
such pools.
  S  11. Subdivision 5 of section 1012 of the racing, pari-mutuel wager-
ing and breeding law, as amended by section 11 of part L-1 of chapter 57
of the laws of 2009, is amended to read as follows:
  5. The provisions of this section shall expire and be  of  no  further
force and effect after June thirtieth, two thousand [ten] ELEVEN.

S. 6610--A                         102                        A. 9710--A

  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 BB

  Section 1. Subsection (a) of section 951 of the tax law, as amended by
section 1 of part A of chapter 407 of the laws of 1999,  is  amended  to
read as follows:
  (a) Dates. For purposes of this article, any reference to the internal
revenue code means the United States Internal Revenue Code of 1986, with
all amendments enacted on or before July twenty-second, nineteen hundred
ninety-eight,  and, unless specifically provided otherwise in this arti-
cle, any reference to December thirty-first, nineteen  hundred  seventy-
six  or  January  first, nineteen hundred seventy-seven contained in the
provisions of such code which are applicable to the determination of the
tax imposed by this article shall be read as a reference to June thirti-
eth, nineteen hundred seventy-eight  or  July  first,  nineteen  hundred
seventy-eight,  respectively. Notwithstanding the foregoing, the unified
credit against the estate tax provided in section two  thousand  ten  of
the  internal  revenue  code shall, for purposes of this article, be the
amount [allowed by such section under  the  applicable  federal  law  in
effect on the decedent's date of death. Provided, however, the amount of
such  credit allowable for purposes of this article shall not exceed the
amount] allowable as if the federal [unified credit did not  exceed  the
tax due under section two thousand one of the internal revenue code on a
federal  taxable estate of] APPLICABLE EXCLUSION AMOUNT WERE one million
dollars.
  S 2. This act shall take effect immediately and shall apply to estates
of decedents dying on or after January 1, 2010.

                                 PART CC

  INTENTIONALLY OMITTED.

                                 PART DD

  Section 1. Subparagraph (A) of paragraph 3-a  of  subdivision  (a)  of
section  21 of the tax law, as added by chapter 390 of the laws of 2008,
is amended to read as follows:
  (A) Notwithstanding any other provision of law to  the  contrary,  the
tangible  property  credit  component  available  for any qualified site
pursuant to paragraph three of this subdivision shall not  exceed  thir-
ty-five  million dollars or three times the costs included in the calcu-
lation of the site preparation credit component and the on-site  ground-
water  remediation  credit  component  under  paragraphs  two  and four,
respectively, of this subdivision, whichever is less; provided, however,
that: (1) in the case of a qualified site to be used primarily for manu-
facturing activities, the tangible property credit  component  available
for  any  qualified site pursuant to paragraph three of this subdivision
shall not exceed forty-five million  dollars  or  six  times  the  costs
included in the calculation of the site preparation credit component and

S. 6610--A                         103                        A. 9710--A

the  on-site  groundwater  remediation credit component under paragraphs
two and four, respectively, of this subdivision, whichever is less;  and
(2)  the  provisions  of this paragraph shall not apply to any qualified
site for which the department of environmental conservation has issued a
notice to the taxpayer before June twenty-third, two thousand eight that
its request for participation has been accepted under subdivision six of
section  27-1407  of the environmental conservation law, BUT SHALL APPLY
TO ANY SITE FOR WHICH A REQUEST  FOR  PARTICIPATION  HAS  BEEN  ACCEPTED
UNDER  SUBDIVISION SIX OF SUCH SECTION 27-1407 BEFORE JUNE TWENTY-THIRD,
TWO THOUSAND EIGHT AND FOR WHICH A CERTIFICATE OF COMPLETION PURSUANT TO
SUBDIVISION THREE OF SECTION 27-1419 OF THE  ENVIRONMENTAL  CONSERVATION
LAW HAS NOT BEEN ISSUED AS OF FEBRUARY NINTH, TWO THOUSAND TEN.
  S  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after January 1, 2010.

                                 PART EE

  Section 1. The article heading of article 29-A  of  the  tax  law,  as
added  by  section  1  of  part  E of chapter 25 of the laws of 2009, is
amended to read as follows:
                 TAX ON MEDALLION TAXICAB [RIDES] TRIPS
          IN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT
  S 2. Subdivisions (d), (e), (f) and (h) of section  1280  of  the  tax
law,  as added by section 1 of part E of chapter 25 of the laws of 2009,
are amended and six new subdivisions (i), (j), (k), (l), (m) and (n) are
added to read as follows:
  (d) "Taxicab" means a motor vehicle [carrying passengers for  hire  in
the  city,  duly]  licensed by the [taxi and limousine commission of the
city] TLC TO CARRY PASSENGERS FOR HIRE  and  [permitted]  AUTHORIZED  to
accept hails from prospective passengers in the street.
  (e)  "Taxicab [ride] TRIP" means a taxicab [ride] TRIP provided to one
or more passengers [to a given destination] REGARDLESS OF THE NUMBER  OF
STOPS,  FOR  WHICH  THE  TAXIMETER IS REQUIRED TO BE IN THE RECORDING OR
HIRED POSITION.
  (f) "Taxicab owner" OR "OWNER" means a person [owning  a  taxicab  and
shall  include  a  purchaser under a reserve title contract, conditional
sales agreement or vendor's lien agreement. In addition, an owner  shall
be deemed to include any lessee, licensee or bailee having the exclusive
use  of  a  taxicab,  under a lease or otherwise, for a period of thirty
days or more] LICENSED BY  THE  TLC  TO  OWN  AND  OPERATE  A  MEDALLION
TAXICAB.
  (h)  "Taximeter"  [shall  include  any device which, when affixed to a
motor vehicle, is so constructed as to operate as a fare indicator and a
time and distance register for the purpose of automatically  determining
the  charge for which a passenger becomes liable] MEANS AN INSTRUMENT OR
DEVICE APPROVED BY THE TLC BY WHICH THE CHARGE TO A PASSENGER  FOR  HIRE
OF  A  LICENSED  TAXICAB  IS  AUTOMATICALLY CALCULATED AND ON WHICH SUCH
CHARGE IS PLAINLY INDICATED.
  (I) "TLC" MEANS THE TAXI AND LIMOUSINE COMMISSION OF THE CITY.
  (J) "AGENT" MEANS A PERSON THAT  ACTS,  BY  EMPLOYMENT,  CONTRACT,  OR
OTHERWISE, ON BEHALF OF ONE OR MORE TAXICAB OWNERS TO OPERATE OR PROVIDE
FOR THE OPERATION OF A LICENSED MEDALLION TAXICAB IN ACCORDANCE WITH THE
TLC'S  RULES.    "AGENT" SHALL NOT INCLUDE AN ATTORNEY OR REPRESENTATIVE
WHO APPEARS ON BEHALF OF ONE OR MORE OWNERS  BEFORE  THE  TLC,  THE  TLC
HEARING  TRIBUNAL,  THE  COMMISSIONER, OR THE NEW YORK STATE DIVISION OF
TAX APPEALS, AND TAXICAB DRIVERS LICENSED PURSUANT TO  CHAPTER  FIVE  OF

S. 6610--A                         104                        A. 9710--A

TITLE  NINETEEN  OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK WHEN
ACTING IN THAT CAPACITY.
  (K)  "MEDALLION"  MEANS  A  PLATE  ISSUED  BY  THE TLC AS THE PHYSICAL
EVIDENCE OF A TAXICAB LICENSE, AND AFFIXED TO THE OUTSIDE OF SUCH  TAXI-
CAB.
  (L)  "TAXICAB  LICENSE"  MEANS  THE AUTHORITY GRANTED BY THE TLC TO AN
OWNER TO OPERATE A DESIGNATED VEHICLE AS A TAXICAB IN THE CITY.
  (M) "TRIP RECORD," ALSO KNOWN AS A TRIP SHEET OR TRIP LOG,  MEANS  THE
WRITTEN,  COMPUTERIZED,  AUTOMATED OR ELECTRONIC ACCOUNTING OF A TAXICAB
RIDE.  THE TRIP DATA TO BE TRANSMITTED OR  RECORDED  SHALL  INCLUDE  THE
TAXICAB  LICENSE NUMBER (MEDALLION NUMBER); THE TAXICAB DRIVER'S LICENSE
NUMBER; THE LOCATION OF TRIP INITIATION; THE TIME  OF  TRIP  INITIATION;
THE  NUMBER OF PASSENGERS; THE LOCATION OF TRIP TERMINATION; THE TIME OF
TRIP TERMINATION;  THE  ITEMIZED  METERED  FARE  FOR  THE  TRIP  (TOLLS,
SURCHARGE, AND TIP IF PAID BY CREDIT OR DEBIT CARD); THE DISTANCE OF THE
TRIP,  THE  TRIP  NUMBER,  THE  METHOD  OF  PAYMENT, THE TOTAL NUMBER OF
PASSENGERS, AS WELL AS SUCH OTHER INFORMATION AS MAY BE REQUIRED BY  THE
TLC.
  (N)  "MEDALLION TAXICAB" MEANS A TAXICAB TO WHICH A MEDALLION HAS BEEN
AFFIXED IN ACCORDANCE WITH APPLICABLE LAW AND REGULATIONS.
  S 3. Section 1281 of the tax law, as added by section 1 of part  E  of
chapter 25 of the laws of 2009, is amended to read as follows:
  S  1281.  Imposition  of  tax. In addition to any other tax imposed by
this chapter or other law, there is  hereby  imposed  on  every  taxicab
owner  a tax of fifty cents per taxicab [ride] TRIP on every [ride] TRIP
that originates in the city and terminates anywhere within the  territo-
rial boundaries of the MCTD.
  S  4.  Section 1282 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1282. Presumption of taxability.  For  the  purpose  of  the  proper
administration of this article and to prevent evasion of the tax imposed
by  this  article,  it  shall be presumed that every taxicab [ride] TRIP
that originates in the city is subject to the tax imposed by this  arti-
cle.    This presumption shall prevail until the contrary is proven, and
the burden of proving the contrary shall be on  the  person  liable  for
[payment of the] tax.
  S  5.  Section 1283 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1283. [Special] LIABILITY FOR TAX; SPECIAL provisions. Notwithstand-
ing any [provisions] PROVISION of [this article] LAW  to  the  contrary:
(a) [If a taxicab owner subject to the tax imposed by this article leas-
es,  rents  or  otherwise furnishes a taxicab to an unrelated person who
uses the taxicab to provide taxicab rides originating in the city, then:
(1) the owner is deemed to provide such taxicab rides during the day  or
other  period that the unrelated person uses the taxicab to provide such
rides; (2) the tax imposed by this article  shall  be  imposed  on  such
owner; and (3) the owner must pay the tax imposed by this article on the
number  of  rides  subject to such tax provided by such unrelated person
during the day or other period] THE TAXICAB OWNER SHALL  BE  LIABLE  FOR
THE  TAX  IMPOSED BY THIS ARTICLE. IF THE OWNER HAS DESIGNATED AN AGENT,
THEN THE AGENT SHALL BE JOINTLY LIABLE WITH THE OWNER  FOR  THE  TAX  ON
TRIPS  OCCURRING  DURING  THE PERIOD THAT SUCH DESIGNATION IS IN EFFECT.
EVEN IF THE TLC HAS SPECIFIED THAT THE OWNER'S AGENT CANNOT  OPERATE  AS
AN AGENT, THAT AGENT SHALL BE JOINTLY LIABLE WITH THE OWNER IF THE AGENT
HAS  ACTED  FOR THE OWNER. DURING THE PERIOD THAT AN OWNER'S DESIGNATION
OF AN AGENT IS IN EFFECT, THE AGENT SHALL FILE THE RETURNS  REQUIRED  BY

S. 6610--A                         105                        A. 9710--A

THIS  ARTICLE  AND PAY ANY TAX DUE WITH SUCH RETURN, BUT THE OWNER SHALL
NOT BE RELIEVED OF LIABILITY FOR TAX, PENALTY OR INTEREST DUE UNDER THIS
ARTICLE, OR FOR THE FILING OF RETURNS REQUIRED TO BE FILED,  UNLESS  THE
AGENT HAS TIMELY FILED ACCURATE RETURNS AND TIMELY PAID THE TAX REQUIRED
TO BE PAID UNDER THIS ARTICLE. IF AN OWNER HAS DESIGNATED AN AGENT, THEN
THE  AGENT  MUST  PERFORM  ANY  ACT  THIS  ARTICLE  REQUIRES AN OWNER TO
PERFORM, BUT THE FAILURE OF SUCH AGENT TO PERFORM ANY SUCH ACT SHALL NOT
RELIEVE THE OWNER FROM THE OBLIGATION TO PERFORM SUCH ACT  OR  FROM  ANY
LIABILITY THAT MAY ARISE FROM FAILURE TO PERFORM THE ACT.
  (b) [Notwithstanding any law to the contrary:] (1) Although the tax is
imposed  on  the  taxicab owner, the [taxicab owner must pass along the]
CITY OR THE TLC SHALL ADOPT OR AMEND ORDINANCES OR REGULATIONS TO ENSURE
THAT THE economic incidence of the tax IS PASSED THROUGH to [the passen-
ger] PASSENGERS, SUCH AS by [adjusting the fare for the ride,  and  the]
INCREASING  TAXICAB TRIP FARES. THE passing along of such economic inci-
dence may not be construed by any court or administrative body as impos-
ing the tax on [the] ANY person [or entity that  pays  the  fare  for  a
ride]  OTHER THAN THE TAXICAB OWNER.  [A] THE city [that regulates taxi-
cabs or taxicab fares] OR THE TLC must adjust [the] TRIP fares  [author-
ized]  to  include therein the PASS-THROUGH OF THE ECONOMIC INCIDENCE OF
THE tax imposed by this article, as the rate of such tax may  from  time
to  time change, and must timely require that any taximeter in a taxicab
used to provide [rides] TRIPS THAT ORIGINATE in the city be adjusted  to
include the [tax] PASS-THROUGH.
  (2)  A  taxicab owner in such city must timely adjust the taximeter in
any of such person's taxicabs so that it reflects [the  tax  imposed  by
this  article]  SUCH PASS-THROUGH as such [rate] PASS-THROUGH AMOUNT may
from time to time change.
  (3) Neither the failure of such city OR THE TLC to  adjust  fares  nor
the  failure  of  a  taxicab owner OR OTHER PERSON to adjust a taximeter
will relieve any person liable for the tax imposed by this article  from
the obligation to pay such tax timely, at the correct rate.
  [(c)  For  purposes of this section, "unrelated person" means a person
other than a related person as defined for purposes of section  fourteen
of this chapter.]
  S  6.  Section 1284 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1284. Returns. Every person liable for the tax imposed by this arti-
cle shall file a return quarterly with  the  commissioner.  Each  return
shall  show  the  number  of  [rides] TRIPS in the quarter for which the
return is filed, together with such other information as the commission-
er may require. The returns required by this section shall be filed  for
quarterly  periods ending on the last day of March, June, September, and
December of each year, and each return shall be filed within twenty days
after the end of the quarterly period covered thereby. Every such person
shall also file a return with the commissioner for the period of  Novem-
ber  and  December two thousand nine, by January twentieth, two thousand
ten, containing the information described  above.  If  the  commissioner
deems  it necessary in order to ensure the payment of the tax imposed by
this article, the commissioner may require returns to be made for short-
er periods than prescribed by the foregoing provisions of this  section,
and upon such dates as the commissioner may specify. The form of returns
shall  be prescribed by the commissioner and shall contain such informa-
tion as the commissioner may deem  necessary  for  the  proper  adminis-
tration of this article. The commissioner may require amended returns to
be  filed within twenty days after notice and to contain the information

S. 6610--A                         106                        A. 9710--A

specified in the notice. The commissioner may require that  the  returns
be filed electronically.
  S  7.  Section 1285 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1285. Payment of tax. Every person required to file a  return  under
this  article  shall,  at  the  time  of  filing such return, pay to the
commissioner the total of all  tax  imposed  by  this  article,  on  the
correct  number  of [rides] TRIPS subject to tax under this article. The
amount so payable to the commissioner for the period for which a  return
is  required to be filed shall be due and payable to the commissioner on
the date limited for the filing of the return for such  period,  without
regard to whether a return is filed or whether the return which is filed
correctly shows the correct number of [rides] TRIPS or the amount of tax
due thereon. The commissioner may require that the tax be paid electron-
ically.
  S  8.  Section 1286 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1286. Records to be kept. (A) Every person [required to pay]  LIABLE
FOR any tax imposed by this article shall keep:
  (1)  records  of every [ride] TAXICAB TRIP originating in the city and
of all amounts paid, charged or due thereon and of the tax payable ther-
eon, in such form as the commissioner may require[.  Every  such  person
shall also keep];
  (2) a true and complete copy of every contract, agreement, or arrange-
ment concerning the lease, rental, or license to use a taxicab for which
the person is required to remit the tax on [rides] TRIPS imposed by this
article on such person;
  (3) A TRUE AND COMPLETE COPY OF EVERY CONTRACT, AGREEMENT, OR ARRANGE-
MENT CONCERNING THE APPOINTMENT OF AN AGENT;
  (4) TRUE AND COMPLETE COPIES OF ANY RECORDS REQUIRED TO BE KEPT BY THE
TLC; AND
  (5) SUCH OTHER RECORDS AND INFORMATION AS THE COMMISSIONER MAY REQUIRE
TO PERFORM HIS OR HER DUTIES UNDER THIS ARTICLE.
  [Such]  (B)  THE  records REQUIRED TO BE KEPT BY THIS SECTION shall be
available for inspection and examination at any time upon demand by  the
commissioner or the commissioner's duly authorized agent or employee and
shall  be preserved for a period of three years, except that the commis-
sioner may consent to  their  destruction  within  that  period  or  may
require  that  they  be kept longer. Such records may be kept within the
meaning of this section when reproduced on any photographic,  photostat-
ic, microfilm, micro-card, miniature photographic or other process which
actually reproduces the original record. If those records are maintained
in  an  electronic format, they must be made available and accessible to
the commissioner in electronic format.
  S 9. Subdivision (b) of section 1287 of  the  tax  law,  as  added  by
section  1  of  part  E of chapter 25 of the laws of 2009, is amended to
read as follows:
  (b) Notwithstanding the provisions of subdivision (a) of this section,
the commissioner may, in his or her discretion, permit the proper  offi-
cer  of  [a]  THE  city [that regulates taxicabs] or the duly authorized
representative of such officer, to inspect any return filed  under  this
article,  or  may  furnish  to such officer or such officer's authorized
representative an abstract of any such return or supply such person with
information  concerning  an  item  contained  in  any  such  return,  or
disclosed  by any investigation of tax liability under this article; but
such permission shall be granted or such information furnished  only  if

S. 6610--A                         107                        A. 9710--A

[such]  THE  city  OR THE TLC shall have furnished the commissioner with
all information requested by the commissioner pursuant to  this  article
and  shall have permitted the commissioner or the commissioner's author-
ized  representative  to  make  any inspection of any records or reports
concerning taxicabs [and their],  TAXICAB  owners  [or  operators],  AND
AGENTS filed with or possessed by such city OR THE TLC which the commis-
sioner  may have requested from such city OR THE TLC. PROVIDED, FURTHER,
THAT THE COMMISSIONER MAY DISCLOSE TO THE CITY OR THE TLC WHETHER OR NOT
A PERSON LIABLE FOR THE TAX IMPOSED BY THIS ARTICLE HAS PAID ALL OF  THE
TAX DUE UNDER THIS ARTICLE AS OF ANY GIVEN DATE.
  S  10. Section 1289 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1289. Cooperation by city. The city AND THE TLC shall cooperate with
and assist the commissioner to effect the purposes of this  article  and
the commissioner's responsibilities under this article. Such cooperation
shall  include furnishing the names, addresses and all other information
concerning every TAXICAB owner, operator, and driver of taxicabs in  the
city, AND CONCERNING EVERY AGENT AND VEHICLE OWNER, AND THE TRIP RECORDS
AND  OTHER  RECORDS  OF  ANY OF THEM, IN THE CITY'S POSSESSION OR IN THE
POSSESSION OF ANY OF ITS AGENCIES OR  INSTRUMENTALITIES,  together  with
any other information the commissioner requests, all without cost to the
commissioner.
  S  11. Section 1290 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1290. Practice and procedure. The provisions of article twenty-seven
of this chapter shall apply with respect to the  administration  of  and
procedure  with  respect  to the tax imposed by this article in the same
manner and with the same force and effect as if  the  language  of  such
article twenty-seven had been incorporated in full into this article and
had  expressly  referred  to  the  tax under this article, except to the
extent that any such provision is either inconsistent with  a  provision
of  this article or is not relevant to this article. [Criminal penalties
provided in section one thousand eight hundred twenty  of  this  chapter
shall  apply  in the same manner and with the same force and effect with
respect to this article.]
  S 12. The tax law is amended by adding a new section 1821 to  read  as
follows:
  S  1821.  MEDALLION  TAXICAB  OWNERS  TAX IN THE METROPOLITAN COMMUTER
TRANSPORTATION DISTRICT. ANY WILLFUL ACT OR OMISSION BY ANY PERSON WHICH
CONSTITUTES A VIOLATION OF ANY PROVISION  OF  ARTICLE  TWENTY-NINE-A  OF
THIS CHAPTER SHALL CONSTITUTE A MISDEMEANOR.
  S  13.  Section  19-504  of the administrative code of the city of New
York is amended by adding a new subdivision q to read as follows:
  Q. NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, THE COMMISSION SHALL
NOT ISSUE OR RENEW A TAXICAB LICENSE UNLESS THE APPLICANT OR HOLDER,  AS
THE  CASE  MAY  BE,  AVOWS UNDER PENALTY OF PERJURY THAT SUCH PERSON HAS
FULLY  PAID  ALL  AND  ANY  TAX  IMPOSED  ON  SUCH  PERSON  BY   ARTICLE
TWENTY-NINE-A OF THE TAX LAW. THE COMMISSION MAY ASK THE COMMISSIONER OF
TAXATION  AND  FINANCE  FOR  CONFIRMATION THAT SUCH PERSON HAS PAID SUCH
TAX.  NOTHING IN THIS SUBDIVISION SHALL PREVENT A PERSON TO WHOM A TAXI-
CAB LICENSE HAS BEEN ISSUED FROM MOVING THE  MEDALLION  WHICH  EVIDENCES
THE  LICENSE  TO  A STANDBY VEHICLE IF THE TLC'S REGULATIONS PERMIT SUCH
PERSON TO DO SO.
  S 14. This act shall take effect July 1,  2010,  and  shall  apply  to
taxicab trips commencing on or after that date; provided that:

S. 6610--A                         108                        A. 9710--A

  (a)  the  provisions of article 29-A of the tax law in existence prior
to that date shall continue to apply to all liabilities  accrued  up  to
that date; and
  (b)  sections nine, ten, eleven and twelve of this act shall be deemed
to have taken effect on the same date and apply in the same manner  that
part E of chapter 25 of the laws of 2009 took effect.

                                 PART FF

  Section  1. Subdivision (a) of section 801 of the tax law, as added by
section 1 of part C of chapter 25 of the laws of  2009,  is  amended  to
read as follows:
  (a)  For  the sole purpose of providing an additional stable and reli-
able  dedicated  funding  source  for  the  metropolitan  transportation
authority  and  its subsidiaries and affiliates to preserve, operate and
improve essential transit and transportation services in  the  metropol-
itan  commuter  transportation  district, a tax is hereby imposed IN THE
COUNTIES OF  THE  METROPOLITAN  COMMUTER  TRANSPORTATION  DISTRICT  THAT
COMPRISE  THE  CITY  OF  NEW  YORK at a rate of [thirty-four] FIFTY-FOUR
hundredths [(.34)] (.54) percent AND IN THE REMAINING  COUNTIES  OF  THE
METROPOLITAN  COMMUTER  TRANSPORTATION  DISTRICT  AT A RATE OF SEVENTEEN
HUNDREDTHS (.17) PERCENT of (1) the payroll expense  of  every  employer
who  engages  in  business within the MCTD and (2) the net earnings from
self-employment of individuals that are attributable to the MCTD if such
earnings attributable to the MCTD  exceed  [ten]  ONE  HUNDRED  thousand
dollars for the tax year.
  S  2. This act shall take effect immediately and apply to the quarters
beginning on or after January 1, 2010 with regard to tax imposed on  the
payroll  expense  of  employers  and taxable years beginning on or after
January 1, 2010 with regard to the tax imposed on the net earnings  from
self-employment of individuals.
  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 FF of this act shall be
as specifically set forth in the last section of such Parts.

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

                                 9710--B

                          I N  A S S E M B L Y

                            January 19, 2010
                               ___________

A  BUDGET  BILL,  submitted by the Governor pursuant to article seven of
  the Constitution -- read once and referred to the  Committee  on  Ways
  and  Means -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee -- again reported from  said
  committee  with amendments, ordered reprinted as amended and recommit-
  ted to said committee

AN ACT to amend the tax law, in relation to increasing the rate  of  the
  cigarette  tax  under article 20 of the tax law (Part A); to amend the
  tax law, in relation  to  the  statutory  limitation  on  the  biofuel
  production credit and the qualified emerging technology company facil-
  ities, operations and training credits (Part B); to amend the tax law,
  in relation to the inclusion of certain past employment related income
  in the calculation of the New York source income of nonresidents (Part
  C);  to  amend  the  tax  law,  in relation to clarifying that certain
  income constitutes New York source income of nonresident  shareholders
  of  an  S  corporation  (Part D); to amend the tax law, in relation to
  information reporting of payments made in settlement of  payment  card
  and  third  party  network transactions (Part E); to amend the tax law
  and the administrative code of the city of New York,  in  relation  to
  the  penalties  imposed upon tax return preparers failing to electron-
  ically file returns and other tax documents when required by law to do
  so, to authorize reasonable  correction  periods  for  electronic  tax
  filings  and payments (Part F); to amend the multiple dwelling law, in
  relation to owner obligations; to amend chapter 349  of  the  laws  of
  1982  amending  the  multiple dwelling law relating to legalization of
  interim multiple dwellings in cities over one million, in relation  to
  the  effectiveness  thereof;  and  to amend chapter 405 of the laws of
  1999 amending the real property tax  law  relating  to  improving  the
  administration of the school tax relief (STAR) program, in relation to
  the  lottery game of Quick Draw (Part G); to amend the tax law and the
  administrative code of the city of New York, in relation  to  allowing
  recognition of marriages performed outside New York state (Part H); to
  amend  the  public  housing  law,  in  relation  to providing a credit
  against income tax for persons or  entities  investing  in  low-income
  housing  (Part  I);  to amend chapter 60 of the laws of 2004, amending
  the tax law relating to the empire state film  production  credit,  in
  relation to the empire state film production credit and in relation to

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD12674-04-0

A. 9710--B                          2

  the  effectiveness  of  such  provisions; and to amend the tax law, in
  relation to the empire state film production credit (Part J); to amend
  the general municipal law, in relation to the decertification of busi-
  ness  entities  located  in  empire  zones;  to  amend the tax law, in
  relation to a refund or credit provided to certain zone businesses and
  to a report on empire zone businesses produced by  the  department  of
  taxation  and  finance,  and  to amend chapter 57 of the laws of 2009,
  amending the general municipal law and the tax law relating to  enact-
  ing reforms to the empire zones program, in relation to the effective-
  ness  thereof  (Part  K);  to  amend  chapter 298 of the laws of 1985,
  amending the tax law relating to the franchise tax on  banking  corpo-
  rations  imposed  by the tax law, authorized to be imposed by any city
  having a population of one million or more by chapter 772 of the  laws
  of 1966 and imposed by the administrative code of the city of New York
  and  relating  to  other provisions of the tax law, chapter 883 of the
  laws of 1975 and the administrative code of the city of New York which
  relates to such franchise tax, to amend chapter 817  of  the  laws  of
  1987,  amending  the  tax  law and the environmental conservation law,
  constituting the business tax reform and rate reduction act  of  1987,
  and to amend chapter 525 of the laws of 1988, amending the tax law and
  the  administrative code of the city of New York relating to the impo-
  sition of taxes in the city of New York, in relation to the effective-
  ness of certain provisions of such chapters; and to extend the  Gramm-
  Leach-Bliley  transitional  provisions  under  the  franchise taxes on
  banking corporations under the tax law and the administrative code  of
  the  city  of  New York (Part L); to amend the tax law, in relation to
  making technical corrections to certain tax enforcement and sales  tax
  avoidance  provisions;  and  to  amend  chapter 57 of the laws of 2009
  amending the criminal procedure law, the penal law, and  the  tax  law
  relating  to  creating  the offense of "tax fraud act", in relation to
  the effectiveness thereof (Subpart  A);  to  amend  the  tax  law,  in
  relation  to  defining  certain  terms  (Subpart  B); and to amend the
  general municipal law and the public authorities law, in  relation  to
  statements  of industrial agencies and their agents and project opera-
  tors (Subpart C) (Part M); to amend the tax law, in  relation  to  the
  amount of the unified credit against the estate tax (Part N); to amend
  the  tax  law  and the administrative code of the city of New York, in
  relation to the taxicab ride tax imposed in the metropolitan  commuter
  transportation  district  by  article 29-A of the tax law (Part O); to
  amend the tax law, in relation to sales and compensating use taxes  on
  the  transportation, transmission and distribution of gas or electric-
  ity; and to repeal section 1105-c of such law relating to reduced  tax
  rates  with  respect to certain gas service and electric service (Part
  P); to amend the tax law, in relation to little cigars  (Part  Q);  to
  repeal  subdivision  (n)  of  section  1115 of the tax law relating to
  exemptions from sales and use taxes of certain  promotional  materials
  (Part  R);  to  amend the tax law, in relation to providing exemptions
  from sales and use taxes (Part S); to amend the tax law and the admin-
  istrative code of the city of New York, in relation to  modifying  the
  New  York  itemized  deduction  (Part T); to amend the tax law and the
  administrative code of the city of New York, in relation  to  ensuring
  payment of sales tax due on rent for hotel room occupancy by providers
  of  hotel rooms (Part U); to amend the environmental conservation law,
  in relation to creating a hazardous waste landfill special  assessment
  (Part  V);  to  amend  the  general  municipal law and the tax law, in
  relation to empire innovation zones (Part W); and  to  amend  the  tax

A. 9710--B                          3

  law,  in  relation to clarifying the application of the credit for the
  rehabilitation of historic properties and historic homes; and to amend
  chapter 239 of the laws of 2009 amending the tax law  and  other  laws
  relating  to providing a tax credit for the rehabilitation of historic
  properties, in relation to making  permanent  the  provisions  thereof
  (Part X)

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

  Section 1. This act enacts into law major  components  of  legislation
which are necessary to implement the state fiscal plan for the 2010-2011
state  fiscal  year.  Each  component  is wholly contained within a Part
identified as Parts A through X. The effective date for each  particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes 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. Subdivision 1 of section 471 of the tax law, as amended  by
section  1 of part RR-1 of chapter 57 of the laws of 2008, is amended to
read as follows:
  1. There is hereby imposed and shall be paid a tax on  all  cigarettes
possessed  in the state by any person for sale, except that no tax shall
be imposed on cigarettes sold under such circumstances that  this  state
is without power to impose such tax or sold to the United States or sold
to  or by a voluntary unincorporated organization of the armed forces of
the United States operating a place for the sale of  goods  pursuant  to
regulations  promulgated  by  the  appropriate  executive  agency of the
United States, to the extent provided in  such  regulations  and  policy
statements of such an agency applicable to such sales. Such tax on ciga-
rettes  shall  be  at  the  rate of [two] THREE dollars and seventy-five
cents for each twenty cigarettes or fraction thereof, provided, however,
that if a package of cigarettes contains more  than  twenty  cigarettes,
the  rate  of  tax on the cigarettes in such package in excess of twenty
shall be [sixty-eight] NINETY-THREE and three-quarters  cents  for  each
five  cigarettes or fraction thereof. Such tax is intended to be imposed
upon only one sale of the  same  package  of  cigarettes.  It  shall  be
presumed  that  all cigarettes within the state are subject to tax until
the contrary is established, and the burden of proof that any cigarettes
are not taxable hereunder shall be upon the person in possession  there-
of.
  S  2.  Section  471-a  of the tax law, as amended by section 2 of part
RR-1 of chapter 57 of the laws of 2008, is amended to read as follows:
  S 471-a. Use tax on cigarettes. There is hereby imposed and  shall  be
paid  a  tax  on  all cigarettes used in the state by any person, except
that no tax shall be imposed (1) if the tax  provided  in  section  four
hundred  seventy-one  of  this  article is paid, (2) on the use of ciga-
rettes which are exempt from the tax imposed by said section, or (3)  on
the  use  of four hundred or less cigarettes, brought into the state on,

A. 9710--B                          4

or in the possession of, any person. Such tax on cigarettes shall be  at
the  rate  of [two] THREE dollars and seventy-five cents for each twenty
cigarettes or fraction thereof, provided, however, that if a package  of
cigarettes  contains more than twenty cigarettes, the rate of tax on the
cigarettes in such package in excess of twenty  shall  be  [sixty-eight]
NINETY-THREE  and three-quarters cents for each five cigarettes or frac-
tion thereof.   Within twenty-four hours after  liability  for  the  tax
accrues,  each  such person shall file with the commissioner a return in
such form as the commissioner may prescribe together with  a  remittance
of  the  tax  shown to be due thereon. For purposes of this article, the
word "use" means the exercise of any right or power actual or  construc-
tive and shall include but is not limited to the receipt, storage or any
keeping  or  retention  for  any  length  of time, but shall not include
possession for sale. All other provisions of this article if not  incon-
sistent  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. Section 482 of the tax law, as amended by section 125-b of part C
of chapter 58 of the laws of 2009, is amended to read as follows:
  S 482. Deposit and disposition of revenue. (a) All taxes, fees, inter-
est  and  penalties collected or received by the commissioner under this
article and article twenty-A of this  chapter  shall  be  deposited  and
disposed  of  pursuant to the provisions of section one hundred seventy-
one-a of this chapter.  (b)  From  the  taxes,  interest  and  penalties
collected  or  received  by the commissioner under sections four hundred
seventy-one and four hundred seventy-one-a of this article, effective on
and  after  March  first,  two  thousand,  forty-nine   and   fifty-five
hundredths, and effective on and after February first, two thousand two,
forty-three  and  seventy  hundredths;  and  effective  on and after May
first, two thousand  two,  sixty-four  and  fifty-five  hundredths;  and
effective  on  and  after April first, two thousand three, sixty-one and
twenty-two hundredths percent; and effective on and  after  June  third,
two  thousand  eight,  seventy  and  sixty-three hundredths percent; AND
EFFECTIVE ON AND  AFTER  JUNE  FIRST,  TWO  THOUSAND  TEN,  SEVENTY-FIVE
PERCENT  collected or received under those sections must be deposited to
the credit of the tobacco control and insurance initiatives pool  to  be
established  and distributed by the commissioner of health in accordance
with section twenty-eight hundred seven-v of the public health law.  (c)
From  the  fees collected or received by the commissioner under subdivi-
sion two of section four hundred eighty-a of this article, effective  on
or  after  September  first,  two thousand nine, any monies collected or
received under that section in excess of three million dollars  must  be
deposited to the credit of the tobacco control and insurance initiatives
pool  to be distributed by the commissioner of health in accordance with
section twenty-eight hundred seven-v of the public health law.
  S 4. Notwithstanding any other provision of law to the  contrary,  the
tax  due  on  cigarettes  possessed in New York state as of the close of
business on June 1, 2010 by any person for sale solely  attributable  to
the increase imposed by the amendments to section 471 of the tax law, as
amended  by  section  one of this act, shall be paid by August 20, 2010,
subject to such terms and conditions as the commissioner of taxation and
finance shall prescribe.
  S 5. This act shall take effect June 2, 2010, and shall apply  to  all
cigarettes  possessed  in the state by any person for sale and all ciga-
rettes used in the state by any person on or after June 2, 2010.

A. 9710--B                          5

                                 PART B

  Section  1.  Subdivision (a) of section 28 of the tax law, as added by
section 1 of part X of chapter 62 of the laws of  2006,  is  amended  to
read as follows:
  (a)  General.  A taxpayer subject to tax under article nine, nine-A or
twenty-two of this chapter shall be allowed a credit  against  such  tax
pursuant  to  the  provisions  referenced  in  subdivision  (d)  of this
section. The credit (or pro rata share of earned credit in the case of a
partnership) for each gallon of biofuel produced at a biofuel  plant  on
or  after  January first, two thousand six shall equal fifteen cents per
gallon after the production of the first forty thousand gallons per year
presented to market. The credit under this section shall  be  capped  at
two and one-half million dollars per taxpayer per taxable year for up to
no  more  than four consecutive taxable years per biofuel plant.  IF THE
TAXPAYER IS A PARTNER IN A PARTNERSHIP OR SHAREHOLDER OF A  NEW  YORK  S
CORPORATION,  THEN  THE  CAP  IMPOSED BY THE PRECEDING SENTENCE SHALL BE
APPLIED AT THE ENTITY LEVEL, SO THAT THE AGGREGATE CREDIT ALLOWED TO ALL
THE PARTNERS OR SHAREHOLDERS OF EACH SUCH ENTITY  IN  THE  TAXABLE  YEAR
DOES NOT EXCEED TWO AND ONE-HALF MILLION DOLLARS.
  S  2. Paragraph (f) of subdivision 12-G of section 210 of the tax law,
as amended by section 1-a of part A of chapter 63 of the laws  of  2005,
is amended to read as follows:
  (f)  An eligible taxpayer may claim credits under this subdivision for
four consecutive taxable years, except, if a taxpayer is located  in  an
academic  incubator  facility  and  relocates within New York state to a
nonacademic incubator site, then the taxpayer (i) may make  a  revocable
election  to  defer  the  credit  provided under this subdivision to the
first taxable year  beginning  after  the  taxpayer  relocates  from  an
academic  incubator facility, and (ii) shall be eligible for such credit
for five consecutive taxable years. In no case shall the credit  allowed
by  this subdivision to a taxpayer exceed two hundred and fifty thousand
dollars per year.  IF THE TAXPAYER IS A  PARTNER  IN  A  PARTNERSHIP  OR
SHAREHOLDER  OF  A NEW YORK S CORPORATION, THEN THE LIMIT IMPOSED BY THE
PRECEDING SENTENCE SHALL BE APPLIED AT THE ENTITY  LEVEL,  SO  THAT  THE
AGGREGATE  CREDIT  ALLOWED  TO  ALL THE PARTNERS OR SHAREHOLDERS OF EACH
SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED TWO  HUNDRED  AND  FIFTY
THOUSAND DOLLARS.
  S  3. Paragraph 6 of subsection (nn) of section 606 of the tax law, as
amended by section 1-a of part A of chapter 63 of the laws of  2005,  is
amended to read as follows:
  (6)  An  eligible taxpayer may claim credits under this subsection for
four consecutive taxable years, except, if a taxpayer is located  in  an
academic  incubator  facility  and  relocates within New York state to a
nonacademic incubator site, then the taxpayer (i) may make  a  revocable
election to defer the credit provided under this subsection to the first
taxable  year  beginning  after  the taxpayer relocates from an academic
incubator facility, and (ii) shall be eligible for such credit for  five
consecutive  years.  In  no  case  shall  the  credit  allowed  by  this
subsection to a taxpayer exceed two hundred fifty thousand  dollars  per
year.  IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR SHAREHOLDER OF A
NEW YORK S CORPORATION, THEN THE LIMIT IMPOSED BY THE PRECEDING SENTENCE
SHALL  BE  APPLIED  AT  THE  ENTITY  LEVEL, SO THAT THE AGGREGATE CREDIT
ALLOWED TO ALL THE PARTNERS OR SHAREHOLDERS OF EACH SUCH ENTITY  IN  THE
TAXABLE YEAR DOES NOT EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS.

A. 9710--B                          6

  S 4. This act shall take effect immediately and apply to taxable years
beginning on or after January 1, 2010.

                                 PART C

  Section  1.  Subparagraph  (E)  of  paragraph  1  of subsection (b) of
section 631 of the tax law, as added by section 1 of part H  of  chapter
60  of  the laws of 2004, is amended and a new subparagraph (F) is added
to read as follows:
  (E) gains from the sale, conveyance or other disposition of shares  of
stock  in a cooperative housing corporation in connection with the grant
or transfer of a proprietary leasehold by the owner thereof and  subject
to  the  provisions  of article thirty-one of this chapter, whether such
shares are held by a partnership, trust or otherwise[.]; OR
  (F) INCOME RECEIVED BY NONRESIDENTS  RELATED  TO  A  BUSINESS,  TRADE,
PROFESSION OR OCCUPATION PREVIOUSLY CARRIED ON IN THIS STATE, WHETHER OR
NOT  AS  AN  EMPLOYEE,  INCLUDING  BUT  NOT LIMITED TO, COVENANTS NOT TO
COMPETE AND TERMINATION  AGREEMENTS.  INCOME  RECEIVED  BY  NONRESIDENTS
RELATED  TO  A  BUSINESS,  TRADE,  PROFESSION  OR  OCCUPATION PREVIOUSLY
CARRIED ON PARTLY WITHIN AND PARTLY WITHOUT THE STATE SHALL BE ALLOCATED
IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTION (C) OF THIS SECTION.
  S 2. This act shall take effect immediately and apply to taxable years
on or after January 1, 2010.

                                 PART D

  Section 1. Legislative findings. The  legislature  finds  that  it  is
necessary to correct a decision of the tax appeals tribunal and a deter-
mination  of the division of tax appeals that erroneously overturned the
longstanding policies of department of taxation and finance that nonres-
ident subchapter S shareholders who sell their interest in an  S  corpo-
ration  pursuant  to  an  election  under  section 338(h)(10) or section
453(h)(1)(A) of the Internal Revenue Code, respectively,  are  taxed  in
accordance with that election and the transaction is treated as an asset
sale  producing  New  York  source  income.  Section  two of this act is
intended to clarify the concept of federal conformity  in  the  personal
income  tax  and is necessary to prevent confusion in the preparation of
returns, unintended refunds, and protracted litigation  of  issues  that
have been properly administered up to now.
  S  2.  Paragraph 2 of subsection (a) of section 632 of the tax law, as
amended by section 65 of part A of chapter 389 of the laws of  1997,  is
amended to read as follows:
  (2) In determining New York source income of a nonresident shareholder
of an S corporation where the election provided for in subsection (a) of
section  six  hundred sixty of this article is in effect, there shall be
included only the portion derived from or connected with New York sourc-
es of such shareholder's pro  rata  share  of  items  of  S  corporation
income,  loss  and  deduction  entering  into his federal adjusted gross
income, increased by reductions for taxes described  in  paragraphs  two
and three of subsection (f) of section thirteen hundred sixty-six of the
internal  revenue  code, as such portion shall be determined under regu-
lations of the commissioner consistent with the applicable  methods  and
rules for allocation under article nine-A or thirty-two of this chapter,
REGARDLESS  OF  WHETHER  OR  NOT  SUCH  ITEM OR REDUCTION IS INCLUDED IN
ENTIRE NET INCOME UNDER ARTICLE NINE-A OR THIRTY-TWO FOR THE  TAX  YEAR.
IF A NONRESIDENT IS A SHAREHOLDER IN AN S CORPORATION WHERE THE ELECTION

A. 9710--B                          7

PROVIDED  FOR  IN  SUBSECTION  (A)  OF SECTION SIX HUNDRED SIXTY OF THIS
ARTICLE IS IN EFFECT, AND THE S CORPORATION HAS DISTRIBUTED AN  INSTALL-
MENT OBLIGATION UNDER SECTION 453(H)(1)(A) OF THE INTERNAL REVENUE CODE,
THEN ANY GAIN RECOGNIZED ON THE RECEIPT OF PAYMENTS FROM THE INSTALLMENT
OBLIGATION  FOR  FEDERAL INCOME TAX PURPOSES WILL BE TREATED AS NEW YORK
SOURCE INCOME ALLOCATED IN A MANNER CONSISTENT WITH THE APPLICABLE METH-
ODS AND RULES FOR ALLOCATION UNDER ARTICLE NINE-A OR THIRTY-TWO OF  THIS
CHAPTER  IN  THE  YEAR  THAT  THE  ASSETS WERE SOLD. IN ADDITION, IF THE
SHAREHOLDERS OF THE S CORPORATION HAVE MADE AN  ELECTION  UNDER  SECTION
338(H)(10) OF THE INTERNAL REVENUE CODE, THEN ANY GAIN RECOGNIZED ON THE
DEEMED ASSET SALE FOR FEDERAL INCOME TAX PURPOSES WILL BE TREATED AS NEW
YORK  SOURCE INCOME ALLOCATED IN A MANNER CONSISTENT WITH THE APPLICABLE
METHODS AND RULES FOR ALLOCATION UNDER ARTICLE NINE-A OR  THIRTY-TWO  OF
THIS  CHAPTER  IN  THE  YEAR  THAT  THE  SHAREHOLDER  MADE  THE  SECTION
338(H)(10) ELECTION. FOR PURPOSES OF A SECTION 338(H)(10) ELECTION, WHEN
A NONRESIDENT SHAREHOLDER EXCHANGES HIS OR HER S  CORPORATION  STOCK  AS
PART  OF  THE  DEEMED  LIQUIDATION, ANY GAIN OR LOSS RECOGNIZED SHALL BE
TREATED AS THE DISPOSITION OF AN INTANGIBLE ASSET AND WILL NOT  INCREASE
OR  OFFSET  ANY GAIN RECOGNIZED ON THE DEEMED ASSETS SALE AS A RESULT OF
THE SECTION 338(H)(10) ELECTION.
  S 3. Paragraph 1 of subsection (b) of section 631 of the  tax  law  is
amended by adding a new subparagraph (E-1) to read as follows:
  (E-1)  IN  THE  CASE  OF  AN S CORPORATION FOR WHICH AN ELECTION IS IN
EFFECT PURSUANT TO SUBSECTION (A) OF SECTION SIX HUNDRED SIXTY  OF  THIS
ARTICLE  THAT  TERMINATES  ITS TAXABLE STATUS IN NEW YORK, ANY INCOME OR
GAIN RECOGNIZED ON THE RECEIPT OF  PAYMENTS  FROM  AN  INSTALLMENT  SALE
CONTRACT  ENTERED  INTO WHEN THE S CORPORATION WAS SUBJECT TO TAX IN NEW
YORK, ALLOCATED IN A MANNER CONSISTENT WITH THE APPLICABLE  METHODS  AND
RULES FOR ALLOCATION UNDER ARTICLE NINE-A OR THIRTY-TWO OF THIS CHAPTER,
IN THE YEAR THAT THE S CORPORATION SOLD ITS ASSETS.
  S  4.  This  act shall take effect immediately; provided however, that
section two of this act shall apply to all tax years for which the stat-
ute of limitations for seeking a refund or assessing additional tax  are
still  open,  and section three of this act shall apply to taxable years
beginning on or after January 1, 2010.

                                 PART E

  Section 1. The tax law is amended by adding a new section 1703 to read
as follows:
  S 1703. INFORMATION RETURNS RELATING TO PAYMENTS MADE IN SETTLEMENT OF
PAYMENT CARD AND THIRD PARTY NETWORK TRANSACTIONS. 1. (A) EVERY  PAYMENT
SETTLEMENT  ENTITY,  THIRD  PARTY  SETTLEMENT  ORGANIZATION,  ELECTRONIC
PAYMENT FACILITATOR OR OTHER THIRD PARTY ACTING ON BEHALF OF  A  PAYMENT
SETTLEMENT  ENTITY,  ALL  AS  DEFINED  IN  SECTION 6050W OF THE INTERNAL
REVENUE CODE AND REFERRED TO HEREIN AS "A REPORTING ENTITY," REQUIRED TO
FILE INFORMATION RETURNS PURSUANT TO THAT SECTION SHALL,  WITHIN  THIRTY
DAYS  OF  THE  FILING THEREOF, FILE WITH THE DEPARTMENT IN SUCH FORM AND
MANNER AS PRESCRIBED BY THE COMMISSIONER EITHER (I) A DUPLICATE  OF  ALL
SUCH INFORMATION RETURNS OR (II) A DUPLICATE OF SUCH INFORMATION RETURNS
RELATED  TO  PARTICIPATING  PAYEES,  AS  DEFINED IN SECTION 6050W OF THE
INTERNAL REVENUE CODE, WITH A NEW YORK STATE ADDRESS OR NEW  YORK  STATE
TAXPAYERS. THE COMMISSIONER MAY REQUIRE THAT SUCH RETURNS BE FILED ELEC-
TRONICALLY.
  (B)  TO FACILITATE ACCURATE REPORTING BY THE ENTITIES REQUIRED TO FILE
INFORMATION RETURNS PURSUANT  TO  THIS  SECTION,  THE  DEPARTMENT  SHALL

A. 9710--B                          8

PROVIDE  A  LIST  OR  DATABASE OF NEW YORK STATE TAXPAYERS NO LATER THAN
FORTY-FIVE DAYS PRIOR TO THE INFORMATION  REPORTING  DEADLINE,  IN  SUCH
FORM  AND  MANNER  AS  PRESCRIBED  BY  THE COMMISSIONER. THE INFORMATION
INCLUDED IN SUCH LIST OR DATABASE SHALL NOT BE USED BY A REPORTING ENTI-
TY  FOR  ANY PURPOSE OTHER THAN PRODUCING AND FILING INFORMATION RETURNS
PURSUANT TO THIS SECTION.
  (C) ANY INFORMATION RECEIVED  BY  THE  DEPARTMENT  ON  AN  INFORMATION
RETURN  FILED  PURSUANT  TO THIS SECTION, CONCERNING A PERSON WHO IS NOT
SUBJECT TO TAX IN NEW YORK, OR IS NOT SUBJECT TO ANY REQUIREMENT IMPOSED
BY OR PURSUANT TO THE AUTHORITY OF THIS CHAPTER, MAY NOT BE USED BY  THE
DEPARTMENT. THE DEPARTMENT SHALL NOT REDISCLOSE ANY INFORMATION RECEIVED
ON AN INFORMATION RETURN FILED PURSUANT TO THIS SECTION.
  2.  (A)  ANY  REPORTING  ENTITY  FAILING TO FILE AN INFORMATION RETURN
REQUIRED PURSUANT TO SUBDIVISION ONE OF THIS  SECTION  WITHIN  THE  TIME
PRESCRIBED  WILL BE SUBJECT TO A PENALTY OF FIFTY DOLLARS FOR EACH FAIL-
URE, IF FAILURE IS FOR NOT MORE THAN ONE MONTH, WITH AN ADDITIONAL FIFTY
DOLLARS FOR EACH MONTH OR FRACTION THEREOF  DURING  WHICH  EACH  FAILURE
CONTINUES.  HOWEVER,  THE TOTAL AMOUNT OF PENALTY IMPOSED ON A REPORTING
ENTITY MAY NOT EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS ANNUALLY.
  (B) THE COMMISSIONER MAY WAIVE ALL  OR  ANY  PORTION  OF  ANY  PENALTY
IMPOSED  BY  THIS  SUBDIVISION  WITH RESPECT TO ANY VIOLATION IF (I) THE
COMMISSIONER DETERMINES THAT THE FAILURE TO TIMELY FILE  A  RETURN,  WAS
DUE TO REASONABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT, OR (II) RESCIND-
ING  THE  PENALTY WOULD PROMOTE COMPLIANCE WITH THE REQUIREMENTS OF THIS
CHAPTER AND EFFECTIVE TAX ADMINISTRATION.
  S 2. This act shall take effect immediately.

                                 PART F

  Section 1. Paragraph 1 of subdivision (e) of section  29  of  the  tax
law,  as  added  by  section 1 of part UU-1 of chapter 57 of the laws of
2008, is amended to read as follows:
  (1) If a tax return preparer is required to file authorized tax  docu-
ments  electronically  pursuant  to subdivision (b) of this section, and
that preparer fails to file one or more  of  those  documents  electron-
ically, then that preparer will be subject to a penalty of fifty dollars
for  each  failure  to  electronically  file an authorized tax document,
unless it is shown that the failure is due to reasonable cause  and  not
due  to  willful  neglect.  [For  purposes of this paragraph, reasonable
cause shall include, but not be limited to, a taxpayer's election not to
electronically file the authorized tax document.]
  S 2. The tax law is amended by adding a new  section  33  to  read  as
follows:
  S  33.   CORRECTION PERIODS FOR ELECTRONIC TAX DOCUMENTS AND PAYMENTS.
(A) FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS HAVE THE SPECIFIED
MEANINGS:
  (1) "ELECTRONIC FUNDS WITHDRAWAL"  MEANS  THE  PROCESS  BY  WHICH  THE
DEPARTMENT, WITH A TAXPAYER'S PERMISSION, ORIGINATES AN ELECTRONIC ORDER
FROM  ITS BANK TO THE TAXPAYER'S BANK TO WITHDRAW FUNDS FROM THE TAXPAY-
ER'S BANK ACCOUNT SO THAT THE TAXPAYER MAY PAY A TAX  LIABILITY  ASSOCI-
ATED WITH A TAX DOCUMENT.
  (2)  "ELECTRONIC  POSTMARK"  MEANS A RECORD OF THE DATE AND TIME (IN A
PARTICULAR TIME ZONE) THAT AN AUTHORIZED ELECTRONIC TRANSMITTER RECEIVES
THE TRANSMISSION OF A TAXPAYER'S ELECTRONICALLY FILED  TAX  DOCUMENT  ON
ITS HOST SYSTEM.

A. 9710--B                          9

  (3)  "ELECTRONIC TRANSMITTER" MEANS A PERSON OR ENTITY THAT IS AUTHOR-
IZED TO SUBMIT ELECTRONIC TAX DOCUMENTS DIRECTLY TO  THE  DEPARTMENT  OR
DIRECTLY  TO  THE INTERNAL REVENUE SERVICE FOR FORWARDING TO THE DEPART-
MENT.
  (4)  "REJECT"  OR  "REJECTED"  MEANS  THAT AN ELECTRONICALLY FILED TAX
DOCUMENT OR AN AUTHORIZATION FOR AN ELECTRONIC FUNDS WITHDRAWAL  IS  NOT
ACCEPTED FOR PROCESSING.
  (5)  "SUBMIT" OR "SUBMITTED" MEANS THE DATE OF THE ELECTRONIC POSTMARK
ASSIGNED BY AN ELECTRONIC TRANSMITTER TO  AN  ELECTRONICALLY  FILED  TAX
DOCUMENT  OR  AUTHORIZATION FOR AN ELECTRONIC FUNDS WITHDRAWAL. HOWEVER,
IF AN ELECTRONIC TRANSMITTER DOES NOT  ASSIGN  AN  ELECTRONIC  POSTMARK,
THEN  AN ELECTRONICALLY FILED TAX DOCUMENT OR AUTHORIZATION FOR AN ELEC-
TRONIC FUNDS WITHDRAWAL SHALL BE DEEMED SUBMITTED ON THE EARLIER OF  THE
DATE  THE INTERNAL REVENUE SERVICE RECEIVES THE ELECTRONICALLY FILED TAX
DOCUMENT OR AUTHORIZATION FOR AN ELECTRONIC  FUNDS  WITHDRAWAL,  OR  THE
DATE  THE  DEPARTMENT  RECEIVES THE ELECTRONICALLY FILED TAX DOCUMENT OR
AUTHORIZATION FOR AN ELECTRONIC FUNDS WITHDRAWAL. IN ANY OF  THE  AFORE-
MENTIONED  CASES,  IF  THE  TAXPAYER  CAN  ESTABLISH  THAT  THE  TIME OF
SUBMISSION, ADJUSTED FOR THE TAXPAYER'S TIME ZONE, WAS TIMELY, THE  TIME
OF SUBMISSION SHALL BE BASED ON THE TAXPAYER'S TIME ZONE.
  (6)  "TAX"  MEANS ANY TAX, FEE, SPECIAL ASSESSMENT OR OTHER IMPOSITION
ADMINISTERED BY THE COMMISSIONER.
  (7) "TAX DOCUMENT" MEANS ANY RETURN, REPORT OR OTHER DOCUMENT RELATING
TO A TAX.
  (B) IF A TAX DOCUMENT IS REQUIRED OR PERMITTED TO BE  FILED  WITH  THE
DEPARTMENT  ELECTRONICALLY  (WHETHER DIRECTLY, DIRECTLY THROUGH A RETURN
TRANSMITTER OR THROUGH THE INTERNAL REVENUE SERVICE), THE  TAX  DOCUMENT
IS  SUBMITTED ELECTRONICALLY ON OR BEFORE THE DUE DATE FOR SUCH DOCUMENT
(INCLUDING ANY EXTENSION OF TIME),  AND  THE  ELECTRONICALLY  FILED  TAX
DOCUMENT IS REJECTED, THEN THE COMMISSIONER MAY, BY INSTRUCTION, PROVIDE
FOR  A  REASONABLE  PERIOD  OF TIME DURING WHICH THE TAX DOCUMENT MAY BE
CORRECTED AND RE-SUBMITTED. IF THE CORRECTED TAX DOCUMENT IS  RE-SUBMIT-
TED  ON  OR  BEFORE THE EXPIRATION DATE OF THE EXTENDED TIME PERIOD, AND
SUCH DOCUMENT IS ACCEPTED BY THE DEPARTMENT  FOR  PROCESSING,  THEN  THE
RE-SUBMITTED TAX DOCUMENT SHALL BE DEEMED TO HAVE BEEN TIMELY FILED EVEN
THOUGH THE DEPARTMENT RECEIVES IT AFTER THE APPLICABLE DUE DATE (INCLUD-
ING ANY EXTENSION OF TIME).
  (C) (1) IF A TAXPAYER HAS SUBMITTED AN AUTHORIZATION FOR AN ELECTRONIC
FUNDS  WITHDRAWAL  ON  OR BEFORE THE DUE DATE FOR PAYMENT (INCLUDING ANY
EXTENSION OF TIME), AND SUCH AUTHORIZATION IS REJECTED  BY  THE  DEPART-
MENT,  THEN  THE COMMISSIONER MAY, BY INSTRUCTION, PROVIDE FOR A REASON-
ABLE PERIOD OF TIME, COMMENCING FROM THE  DATE  OF  REJECTION,  FOR  THE
TAXPAYER  TO  RE-SUBMIT THE AUTHORIZATION FOR THE ELECTRONIC FUNDS WITH-
DRAWAL. IF THE AUTHORIZATION FOR  THE  ELECTRONIC  FUNDS  WITHDRAWAL  IS
RE-SUBMITTED ON OR BEFORE THE EXPIRATION DATE OF THE EXTENDED TIME PERI-
OD,  THEN  THE  ELECTRONIC FUNDS WITHDRAWAL SHALL BE DEEMED TO HAVE BEEN
TIMELY PAID EVEN THOUGH THE DEPARTMENT RECEIVES IT AFTER THE  APPLICABLE
DUE DATE (INCLUDING ANY EXTENSION OF TIME).
  (2) ANY REASONABLE PERIOD OF TIME PROVIDED FOR BY THE COMMISSIONER FOR
RE-SUBMISSION OF AN AUTHORIZATION FOR AN ELECTRONIC FUNDS WITHDRAWAL MAY
DIFFER  FROM  THE  REASONABLE  TIME  PERIOD, IF ANY, PROVIDED FOR BY THE
COMMISSIONER WITH RESPECT TO THE ELECTRONICALLY FILED TAX DOCUMENT  WITH
WHICH THE TAXPAYER'S ELECTRONIC FUNDS WITHDRAWAL IS ASSOCIATED.
  (3)  IN LIEU OF RE-SUBMITTING AN AUTHORIZATION FOR AN ELECTRONIC FUNDS
WITHDRAWAL, THE COMMISSIONER MAY PERMIT A TAXPAYER  TO  INSTEAD  PAY  BY

A. 9710--B                         10

SUBSTITUTE  MEANS, AS DEFINED BY INSTRUCTION. ANY SUCH INSTRUCTION SHALL
ADDRESS THE TIMELINESS OF PAYMENT BY SUBSTITUTE MEANS.
  (D)  THE  PROVISIONS  OF  THIS  SECTION  SHALL  NOT APPLY TO TAXPAYERS
PARTICIPATING IN THE ELECTRONIC FUNDS TRANSFER  PROGRAMS  PRESCRIBED  BY
SECTIONS NINE AND TEN OF THIS ARTICLE.
  S 3. Intentionally omitted.
  S  4.  Paragraph 5 of subsection (u) of section 685 of the tax law, as
added by section 2 of part Q of chapter 61  of  the  laws  of  2005,  is
amended to read as follows:
  (5)  Failure  to  electronically  file.  If  a  tax return preparer is
required to file returns electronically pursuant  to  paragraph  ten  of
subsection  (g)  of section six hundred fifty-eight of this article, and
such preparer fails to file one or more of such returns  electronically,
then  such  preparer  shall be subject to a penalty of fifty dollars for
each such failure to electronically file a return, unless  it  is  shown
that  such  failure  is  due  to reasonable cause and not due to willful
neglect.   [For purposes  of  this  paragraph,  reasonable  cause  shall
include,  but  not be limited to, a taxpayer's election not to electron-
ically file his or her return.]
  S 5. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis-
trative code of the city of New York, as added by section 4 of part Q of
chapter 61 of the laws of 2005, is amended to read as follows:
  (5) Failure to electronically  file.  If  a  tax  return  preparer  is
required  to  file  returns  electronically pursuant to paragraph ten of
subdivision (g) of section 11-1758, and such preparer fails to file  one
or  more  of  such  returns  electronically, then such preparer shall be
subject to a penalty of fifty dollars for each such failure to electron-
ically file a return, unless it is shown that such  failure  is  due  to
reasonable  cause  and not due to willful neglect. [For purposes of this
paragraph, reasonable cause shall include, but  not  be  limited  to,  a
taxpayer's election not to electronically file his or her return.]
  S  6.  This act shall take effect immediately, provided, however, that
sections one, four and five of this act shall apply to tax  returns  and
other  tax  documents  required to be filed electronically by tax return
preparers on or after December 31, 2010, and section  two  of  this  act
shall apply to electronic returns and payments made for tax years begin-
ning after December 31, 2010.

                                 PART G

  Section  1.  Section 3 of chapter 349 of the laws of 1982 amending the
multiple dwelling law relating to the legalization of  interim  multiple
dwellings  in  cities  over one million, as amended by section 1 of part
PP-1 of chapter 57 of the laws of 2008, is amended to read as follows:
  S 3. Effective date [and termination].  This  act  shall  take  effect
immediately. [The provisions of this act and all regulations, orders and
requirements thereunder shall terminate at the close of the calendar day
May 31, 2010.]
  S  2.  Paragraph  (v)  of subdivision 1 of section 284 of the multiple
dwelling law, as amended by section 2 of part PP-1 of chapter 57 of  the
laws of 2008, is amended to read as follows:
  (v) An owner of an interim multiple dwelling who has not complied with
the  requirements of paragraph (i), (ii), (iii) or (iv) of this subdivi-
sion by the effective date of this  paragraph  as  provided  in  chapter
eighty-five of the laws of two thousand two shall hereafter be deemed in
compliance  with  this  subdivision  provided  that  such owner filed an

A. 9710--B                         11

alteration application by September first, nineteen hundred ninety-nine,
took all reasonable and necessary action to obtain  an  approved  alter-
ation  permit by March first, two thousand, achieves compliance with the
standards  of safety and fire protection set forth in article seven-B of
this chapter for the residential portions of the building by May  first,
two  thousand  [ten]  TWELVE  or  within twelve months from obtaining an
approved alteration permit whichever is later, and takes all  reasonable
and  necessary  action to obtain a certificate of occupancy as a class A
multiple dwelling for the residential portions of the building or struc-
ture by May thirty-first, two thousand [ten] TWELVE or within one  month
from  achieving  compliance  with  the  aforementioned standards for the
residential portions of the building, whichever is later.
  S 3. Section 1 of part J of chapter 405 of the laws of  1999  amending
the  real  property  tax law relating to improving the administration of
the school tax relief (STAR) program, as amended by section  3  of  part
PP-1 of chapter 57 of the laws of 2008, is amended to read as follows:
  Section  1. Notwithstanding the provisions of article 5 of the general
construction law, the provisions of the  tax  law  amended  by  sections
94-a,  94-d and 94-g of chapter 2 of the laws of 1995 are hereby revived
and shall continue in full force and effect as they existed on March 31,
1999 [through May 31, 2010, when upon such date they shall expire and be
repealed]. Sections 1, 2, 3, 4, and 5, and such part of  section  10  of
chapter  336  of the laws of 1999 as relates to providing for the effec-
tiveness of such sections 1, 2, 3, 4 and 5 shall be nullified in  effect
on  the  effective date of this section, except that the amendments made
to: paragraph (2) of subdivision a of section 1612 of  the  tax  law  by
such section 1; and subdivision b of section 1612 of the tax law by such
section  2;  and the repeal of section 152 of chapter 166 of the laws of
1991 made by such section 5 shall continue to remain in effect.
  S 4. This act shall take effect immediately.

                                 PART H

  Section 1. Section 2 of the tax law  is  amended  by  adding  two  new
subdivisions 12 and 13 to read as follows:
  12.  AS USED IN THIS CHAPTER, A "STATE RECOGNIZED MARRIAGE" SHALL MEAN
A MARRIAGE RECOGNIZED BY  NEW  YORK  STATE  LAW,  INCLUDING  A  MARRIAGE
OUTSIDE THE STATE RECOGNIZED UNDER PRINCIPLES OF COMITY.
  13.  AS  USED IN THIS CHAPTER, "MARRIED", "SPOUSE", "HUSBAND", "WIFE",
"WIDOW", AND OTHER SIMILAR TERMS ENCOMPASS ANY INDIVIDUALS  IN  A  STATE
RECOGNIZED   MARRIAGE,   NOTWITHSTANDING  THE  TREATMENT  AFFORDED  SUCH
MARRIAGE UNDER THE LAWS OF THE UNITED STATES.
  S 2. The tax law is amended by adding a new  section  31  to  read  as
follows:
  S  31. TREATMENT OF INDIVIDUALS IN ANY STATE RECOGNIZED MARRIAGE.  (A)
FOR PURPOSES OF  THIS  CHAPTER,  INDIVIDUALS  IN  ANY  STATE  RECOGNIZED
MARRIAGE  SHALL  BE  TREATED  AS MARRIED, AND THEIR STATUS AS "HUSBAND",
"WIFE", "SPOUSE", "WIDOW"  OR  OTHER  SIMILAR  TERM  INDICATING  MARITAL
STATUS AS USED IN THIS CHAPTER SHALL BE THAT OF SIMILARLY-SITUATED INDI-
VIDUALS  IN  ANY  OTHER  MARRIAGE RECOGNIZED UNDER FEDERAL AND STATE TAX
LAW, NOTWITHSTANDING THE TREATMENT AFFORDED SUCH INDIVIDUALS  UNDER  THE
LAWS OF THE UNITED STATES.
  (B) TAX LIABILITY UNDER ARTICLES TWENTY-TWO, TWENTY-SIX, TWENTY-SIX-B,
THIRTY, THIRTY-A, AND THIRTY-B OF THIS CHAPTER SHALL BE COMPUTED FOR ANY
STATE RECOGNIZED MARRIAGE IN THE SAME WAY LIABILITY WOULD BE COMPUTED IN
ANY OTHER MARRIAGE RECOGNIZED UNDER FEDERAL AND STATE TAX LAW.

A. 9710--B                         12

  S 3. Subsection (b) of section 607 of the tax law, as amended by chap-
ter 760 of the laws of 1992, is amended to read as follows:
  (b)  Marital  or other status. An individual's marital or other status
under section six hundred one, subsection (b) of section six hundred six
and section six hundred fourteen shall be the same as his OR HER marital
or other status for purposes  of  establishing  the  applicable  federal
income tax rates; PROVIDED HOWEVER, THAT INDIVIDUALS IN ANY STATE RECOG-
NIZED  MARRIAGE  SHALL  BE  TREATED AS MARRIED AND AS "HUSBAND", "WIFE",
"SPOUSE", "WIDOW" OR OTHER SIMILAR TERM USED IN THIS ARTICLE TO INDICATE
MARITAL STATUS TO THE SAME EXTENT AND IN THE SAME WAY AS ARE INDIVIDUALS
IN ANY OTHER LEGALLY PERFORMED MARRIAGE. IN APPLYING RELEVANT PROVISIONS
OF THE LAWS OF THE UNITED STATES TO THIS ARTICLE, THE  TERMS  "MARRIED",
"HUSBAND",  "WIFE",  "SPOUSE",  "WIDOW" OR OTHER SIMILAR TERM INDICATING
MARITAL STATUS AS USED IN THIS ARTICLE SHALL INCLUDE  ANY  STATE  RECOG-
NIZED  MARRIAGE, NOTWITHSTANDING THE TREATMENT AFFORDED SUCH INDIVIDUALS
UNDER THE LAWS OF THE UNITED STATES.
  S 4. Subsection (b) of section 651 of the tax law is amended by adding
a new paragraph 8 to read as follows:
  (8) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, AN INDIVIDUAL
IN A STATE RECOGNIZED MARRIAGE NOT RECOGNIZED BY FEDERAL LAW SHALL  FILE
A  STATE RETURN USING THE SAME FILING STATUS THAT WOULD HAVE BEEN AVAIL-
ABLE HAD SUCH MARRIAGE BEEN RECOGNIZED BY FEDERAL LAW.
  S 5. Subsection (a) of section 951 of  the  tax  law,  as  amended  by
section  1  of  part A of chapter 407 of the laws of 1999, is amended to
read as follows:
  (a) Dates. For purposes of this article, any reference to the internal
revenue code means the United States Internal Revenue Code of 1986, with
all amendments enacted on or before July twenty-second, nineteen hundred
ninety-eight, and, unless specifically provided otherwise in this  arti-
cle,  any  reference to December thirty-first, nineteen hundred seventy-
six or January first, nineteen hundred seventy-seven  contained  in  the
provisions of such code which are applicable to the determination of the
tax imposed by this article shall be read as a reference to June thirti-
eth,  nineteen  hundred  seventy-eight  or  July first, nineteen hundred
seventy-eight, respectively. Notwithstanding the foregoing, the  unified
credit  against  the  estate tax provided in section two thousand ten of
the internal revenue code shall, for purposes of this  article,  be  the
amount  allowed  by  such  section  under  the applicable federal law in
effect on the decedent's date of death. Provided, however, the amount of
such credit allowable for purposes of this article shall not exceed  the
amount allowable as if the federal unified credit did not exceed the tax
due  under  section  two  thousand one of the internal revenue code on a
federal taxable estate of one million dollars.   PROVIDED, FURTHER,  ANY
ELECTION TO TAKE A QUALIFIED TERMINABLE INTEREST PROPERTY DEDUCTION MADE
ON  THE  RETURN  FILED  UNDER  THIS  ARTICLE  SHALL BE TREATED AS IF THE
ELECTION HAD BEEN MADE ON THE FEDERAL ESTATE TAX RETURN.
  S 6. Section 1-112 of the administrative code of the city of New  York
is amended by adding a new subdivision 22 to read as follows:
  22.  FOR  PURPOSES  OF CHAPTER SEVENTEEN OF TITLE ELEVEN OF THIS CODE,
"MARRIED", "SPOUSE", "HUSBAND", "WIFE", "WIDOW", AND OTHER SIMILAR TERMS
ENCOMPASS ANY STATE RECOGNIZED MARRIAGE  NOTWITHSTANDING  THE  TREATMENT
AFFORDED SUCH INDIVIDUALS UNDER THE LAWS OF THE UNITED STATES.
  S  7. Subdivision (b) of section 11-1707 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. 9710--B                         13

  (b)  Marital  or other status. An individual's marital or other status
under section 11-1701 and section 11-1714 OF THIS CHAPTER shall  be  the
same  as his OR HER marital or other status for purposes of establishing
the applicable federal income tax rates; PROVIDED HOWEVER, THAT INDIVID-
UALS IN ANY STATE RECOGNIZED MARRIAGE SHALL BE TREATED AS MARRIED AND AS
"HUSBAND",  "WIFE",  "SPOUSE",  "WIDOW" OR OTHER SIMILAR TERM INDICATING
MARITAL STATUS AS USED IN THIS CHAPTER TO THE SAME  EXTENT  AND  IN  THE
SAME WAY AS IN ANY OTHER MARRIAGE RECOGNIZED UNDER FEDERAL AND STATE TAX
LAW. IN APPLYING RELEVANT PROVISIONS OF THE LAWS OF THE UNITED STATES TO
THIS  CHAPTER, THE TERMS "MARRIED", "HUSBAND", "WIFE", "SPOUSE", "WIDOW"
AND OTHER SIMILAR TERMS INDICATING MARITAL STATUS AS USED IN THIS  CHAP-
TER SHALL INCLUDE INDIVIDUALS IN ANY STATE RECOGNIZED MARRIAGE, NOTWITH-
STANDING  THE  TREATMENT AFFORDED SUCH INDIVIDUALS UNDER THE LAWS OF THE
UNITED STATES.
  S 8. This act shall take effect immediately;  provided  however,  that
sections  three,  four, six and seven of this act shall apply to taxable
years beginning on or after January 1, 2010.

                                 PART I

  Section 1. Subdivision 4 of section 22 of the public housing  law,  as
amended  by  section 1 of part J-1 of chapter 57 of the laws of 2009, 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-four] TWENTY-EIGHT  million  dollars.  The
limitation  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. This act shall take effect immediately.

                                 PART J

  Section 1. Subdivision (d) of 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, as added by section 2 of part Y-1 of  chapter  57  of
the laws of 2009, is amended to read as follows:
  (d) ADDITIONAL POOL 1 - 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 gover-
nor's office for motion picture and television development among taxpay-
ers in accordance with subdivision (a) of this section.
  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 (e) to read as follows:
  (E) ADDITIONAL POOL 2 - THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED IN
SUBDIVISION (A) OF THIS SECTION SHALL BE INCREASED BY AN ADDITIONAL $420
MILLION  IN  2010,  $420  MILLION  IN  2011,  $420 MILLION IN 2012, $420
MILLION IN 2013 AND $420 MILLION IN 2014. 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.  THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVEL-
OPMENT MUST NOTIFY TAXPAYERS OF THEIR ALLOCATION YEAR  AND  INCLUDE  THE
ALLOCATION  YEAR ON THE CERTIFICATE OF TAX CREDIT. TAXPAYERS ELIGIBLE TO
CLAIM A CREDIT MUST REPORT THE ALLOCATION YEAR DIRECTLY ON THEIR  EMPIRE

A. 9710--B                         14

STATE  FILM PRODUCTION CREDIT TAX FORM FOR EACH YEAR A CREDIT IS CLAIMED
AND INCLUDE A COPY OF THE CERTIFICATE WITH THEIR TAX RETURN. IN THE CASE
OF A QUALIFIED FILM THAT RECEIVES  FUNDS  FROM  ADDITIONAL  POOL  2,  NO
EMPIRE STATE FILM PRODUCTION CREDIT SHALL BE CLAIMED BEFORE THE LATER OF
(1)  THE  TAXABLE YEAR THE PRODUCTION OF THE QUALIFIED FILM IS COMPLETE,
OR (2) THE TAXABLE YEAR IMMEDIATELY FOLLOWING THE  ALLOCATION  YEAR  FOR
WHICH  THE  FILM  HAS BEEN ALLOCATED CREDIT BY THE GOVERNOR'S OFFICE FOR
MOTION PICTURE AND TELEVISION DEVELOPMENT.
  S 3. Paragraph 1 of subdivision (a) of section 24 of the tax  law,  as
added  by  section  1  of  part  P of chapter 60 of the laws of 2004, is
amended to read as follows:
  (1) Allowance  of  credit.  A  taxpayer  which  is  a  qualified  film
production  company, OR A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY,
or which is a sole proprietor of OR A MEMBER OF A PARTNERSHIP WHICH IS a
qualified film  production  company  OR  A  QUALIFIED  INDEPENDENT  FILM
PRODUCTION COMPANY, and which is subject to tax under articles nine-A or
twenty-two  of this chapter, shall be allowed a credit against such tax,
pursuant to  the  provisions  referenced  in  subdivision  (c)  of  this
section, to be computed as hereinafter provided.
  S  4.  Paragraph 2 of subdivision (a) of section 24 of the tax law, as
amended by section 1 of part Y-1 of chapter 57 of the laws of  2009,  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:  (I)  the  qualified
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  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
performance of services at any film production facility within and with-
out  the state in the production of such qualified film, AND (II) EXCEPT
WITH RESPECT TO A  QUALIFIED  INDEPENDENT  FILM  PRODUCTION  COMPANY  OR
PILOT,  AT LEAST TEN PERCENT OF THE TOTAL PRINCIPAL PHOTOGRAPHY SHOOTING
DAYS SPENT IN THE PRODUCTION OF SUCH QUALIFIED FILM MUST BE SPENT  AT  A
QUALIFIED   FILM   PRODUCTION  FACILITY.    However,  if  the  qualified
production costs (excluding post production costs) which  are  attribut-
able 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  quali-
fied  production  costs  attributable to the use of tangible property or
the performance of services in the production  of  such  qualified  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 facili-
ty 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  quali-
fied film. The credit shall be allowed for the taxable year in which the
production of such qualified film is completed.  HOWEVER, IN THE CASE OF
A  QUALIFIED  FILM THAT RECEIVES FUNDS FROM ADDITIONAL POOL 2, NO CREDIT
SHALL BE CLAIMED BEFORE THE LATER OF (1) THE TAXABLE YEAR THE PRODUCTION
OF THE QUALIFIED FILM IS COMPLETE, OR (2) THE TAXABLE  YEAR  IMMEDIATELY
FOLLOWING  THE  ALLOCATION  YEAR  FOR  WHICH THE FILM HAS BEEN ALLOCATED
CREDIT BY THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVEL-

A. 9710--B                         15

OPMENT. 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 FIRST taxable year in which the [production
of  the  qualified  film  is completed] CREDIT MAY BE CLAIMED 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 FIRST taxable year in which the [production
of  the  qualified  film  is completed] CREDIT MAY BE CLAIMED and in the
next two succeeding taxable years, with one-third of the amount  of  the
credit allowed being claimed in each year.
  S 5. Subdivision (a) of section 24 of the tax law is amended by adding
a new paragraph 4 to read as follows:
  (4)  NOTWITHSTANDING  THE  FOREGOING PROVISIONS OF THIS SUBDIVISION, A
QUALIFIED  FILM  PRODUCTION  COMPANY  OR  QUALIFIED   INDEPENDENT   FILM
PRODUCTION  COMPANY, THAT HAS APPLIED FOR CREDIT UNDER THE PROVISIONS OF
THIS SECTION, AGREES AS A CONDITION FOR THE GRANTING OF THE CREDIT:  (I)
TO INCLUDE IN EACH QUALIFIED FILM DISTRIBUTED BY DVD, OR OTHER MEDIA FOR
THE  SECONDARY  MARKET,  A  NEW  YORK  PROMOTIONAL VIDEO APPROVED BY THE
GOVERNOR'S OFFICE OF MOTION PICTURE AND  TELEVISION  DEVELOPMENT  OR  TO
INCLUDE  IN  THE  END  CREDITS  OF  EACH QUALIFIED FILM "FILMED WITH THE
SUPPORT OF THE NEW YORK STATE GOVERNOR'S OFFICE OF  MOTION  PICTURE  AND
TELEVISION  DEVELOPMENT" AND A LOGO PROVIDED BY THE GOVERNOR'S OFFICE OF
MOTION PICTURE AND TELEVISION DEVELOPMENT, AND (II) TO CERTIFY  THAT  IT
WILL  PURCHASE TAXABLE TANGIBLE PROPERTY AND SERVICES, DEFINED AS QUALI-
FIED PRODUCTION COSTS PURSUANT TO PARAGRAPH ONE OF  SUBDIVISION  (B)  OF
THIS  SECTION, ONLY FROM COMPANIES REGISTERED TO COLLECT AND REMIT STATE
AND LOCAL SALES AND USE TAXES  PURSUANT  TO  ARTICLES  TWENTY-EIGHT  AND
TWENTY-NINE OF THIS CHAPTER.
  S  6.  Paragraph 1 of subdivision (b) of section 24 of the tax law, as
added by section 1 of part P of chapter 60  of  the  laws  of  2004,  is
amended to read as follows:
  (1)  "Qualified  production  costs" means production costs only to the
extent such costs are attributable to the use of  tangible  property  or
the  performance of services within the state directly and predominantly
in the production (including pre-production and post  production)  of  a
qualified film, PROVIDED, HOWEVER, THAT QUALIFIED PRODUCTION COSTS SHALL
NOT  INCLUDE  POST  PRODUCTION  COSTS  UNLESS  THE  PORTION  OF THE POST
PRODUCTION COSTS PAID OR INCURRED THAT IS ATTRIBUTABLE  TO  THE  USE  OF
TANGIBLE  PROPERTY  OR  THE  PERFORMANCE  OF SERVICES IN NEW YORK IN THE
PRODUCTION OF SUCH QUALIFIED FILM EQUALS OR EXCEEDS SEVENTY-FIVE PERCENT
OF THE TOTAL POST PRODUCTION COSTS SPENT WITHIN AND WITHOUT NEW YORK  IN
THE PRODUCTION OF SUCH QUALIFIED FILM.
  S  7.  Paragraph 4 of subdivision (b) of section 24 of the tax law, as
added by section 1 of part P of chapter 60  of  the  laws  of  2004,  is
amended to read as follows:
  (4) "Film production facility" shall mean a building and/or complex of
buildings  and  their improvements and associated back-lot facilities in
which films are or are intended  to  be  regularly  produced  and  which
contain  at  least  one  sound  stage, PROVIDED, HOWEVER, THAT AN ARMORY
OWNED BY THE STATE OR CITY OF NEW YORK LOCATED IN THE CITY OF  NEW  YORK
SHALL  NOT  BE  CONSIDERED  TO BE A "FILM PRODUCTION FACILITY" UNLESS IT
MEETS THE CRITERIA CONTAINED IN PARAGRAPH FIVE OF  THIS  SUBDIVISION  OR
UNLESS  SUCH FACILITY IS USED BY A QUALIFIED INDEPENDENT FILM PRODUCTION
COMPANY.

A. 9710--B                         16

  S 8. Paragraph 5 of subdivision (b) of section 24 of the tax  law,  as
added  by  section  1  of  part  P of chapter 60 of the laws of 2004, is
amended to read as follows:
  (5)  "Qualified film production facility" shall mean a film production
facility in the state, which contains at least one sound stage having  a
minimum  of  seven  thousand square feet of contiguous production space,
PROVIDED,  HOWEVER,  THAT  EXCEPT  WITH  RESPECT  TO  A  QUALIFIED  FILM
PRODUCTION   FACILITY   BEING  USED  BY  A  QUALIFIED  INDEPENDENT  FILM
PRODUCTION COMPANY: (I) A FILM PRODUCTION FACILITY IN THE  CITY  OF  NEW
YORK  MUST  CONTAIN  AT  LEAST ONE SOUND STAGE HAVING A MINIMUM OF SEVEN
THOUSAND SQUARE FEET OF CONTIGUOUS PRODUCTION SPACE THAT IS SOUND  PROOF
WITH A NOISE CRITERIA ("NC") OF 30 OR BETTER, HAS SUFFICIENT HEATING AND
AIR  CONDITIONING  FOR SHOOTING WITHOUT THE NEED FOR SUPPLEMENTAL UNITS,
INCORPORATES A PERMANENT GRID AND SUFFICIENT BUILT-IN  ELECTRIC  SERVICE
FOR  SHOOTING WITHOUT THE NEED FOR GENERATORS, AND IS COLUMN-FREE WITH A
CLEAR HEIGHT OF AT LEAST SIXTEEN FEET UNDER THE PERMANENT GRID; AND (II)
AN ARMORY OWNED BY THE STATE OR CITY OF NEW YORK LOCATED IN THE CITY  OF
NEW  YORK THAT DOES NOT SATISFY THE CRITERIA OF SUBPARAGRAPH (I) OF THIS
PARAGRAPH SHALL BE TREATED AS A QUALIFIED FILM PRODUCTION FACILITY  UPON
CERTIFICATION  BY THE GOVERNOR'S OFFICE OF MOTION PICTURE AND TELEVISION
DEVELOPMENT OF A PETITION SUBMITTED TO THAT OFFICE BY A  QUALIFIED  FILM
PRODUCTION COMPANY ESTABLISHING THAT NO QUALIFIED FILM PRODUCTION FACIL-
ITY  IS AVAILABLE IN THE CITY OF NEW YORK THAT HAS STAGE SPACE AVAILABLE
FOR SHOOTING SUCH COMPANY'S FILM. SUCH PETITION SHALL  BE  SUBMITTED  NO
LATER  THAN  NINETY DAYS PRIOR TO THE START OF PRINCIPAL PHOTOGRAPHY FOR
THE QUALIFIED FILM AND THE GOVERNOR'S OFFICE OF MOTION PICTURE AND TELE-
VISION DEVELOPMENT SHALL HAVE TEN DAYS TO CERTIFY OR  REJECT  THE  PETI-
TION.  A STAGE WILL BE DEEMED UNAVAILABLE IF CONSIDERATION HAS BEEN PAID
FOR ITS USE OR SUCH STAGE IS CURRENTLY UNDER AN AGREEMENT WITH AN OPTION
FOR USE AND, IN EITHER CIRCUMSTANCE, SUCH PERIOD  OF  USE  INCLUDES  THE
PETITIONER'S ESTIMATED START DATE OF PRINCIPAL PHOTOGRAPHY.
  S 9. Subdivision (b) of section 24 of the tax law is amended by adding
a new paragraph 7 to read as follows:
  (7)  "QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY" IS A CORPORATION,
PARTNERSHIP, LIMITED PARTNERSHIP, OR OTHER ENTITY OR INDIVIDUAL, THAT OR
WHO (I) IS PRINCIPALLY ENGAGED IN THE PRODUCTION  OF  A  QUALIFIED  FILM
WITH  A MAXIMUM BUDGET OF FIFTEEN MILLION DOLLARS, AND (II) CONTROLS THE
QUALIFIED FILM DURING PRODUCTION, AND (III) EITHER  IS  NOT  A  PUBLICLY
TRADED  ENTITY, OR NO MORE THAN FIVE PERCENT OF THE BENEFICIAL OWNERSHIP
OF WHICH IS OWNED, DIRECTLY OR INDIRECTLY, BY A PUBLICLY TRADED ENTITY.
  S 10. Section 24 of the tax law is amended by adding a new subdivision
(d) to read as follows:
  (D) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, EMPLOYEES AND OFFI-
CERS OF THE GOVERNOR'S OFFICE OF MOTION PICTURE AND TELEVISION  DEVELOP-
MENT  AND  THE DEPARTMENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND
EXCHANGE INFORMATION REGARDING THE  CREDITS  APPLIED  FOR,  ALLOWED,  OR
CLAIMED  PURSUANT  TO  THIS  SECTION  AND TAXPAYERS WHO ARE APPLYING FOR
CREDITS OR WHO ARE CLAIMING CREDITS, INCLUDING INFORMATION CONTAINED  IN
OR  DERIVED  FROM  CREDIT  CLAIM  FORMS  SUBMITTED TO THE DEPARTMENT AND
APPLICATIONS FOR CREDIT SUBMITTED TO THE  GOVERNOR'S  OFFICE  OF  MOTION
PICTURE AND TELEVISION DEVELOPMENT.
  S  11.  Section 9 of part P of chapter 60 of the laws of 2004 amending
the tax law relating to the empire  state  film  production  credit,  as
amended  by section 5 of part WW-1 of chapter 57 of the laws of 2008, is
amended to read as follows:

A. 9710--B                         17

  S 9. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2004, with respect to  "qualified
production  costs"  paid  or  incurred  on or after such effective date,
providing final applications are approved  on  or  after  the  effective
date,  regardless  of  whether  the initial application relating to such
qualified film was first submitted before such date,  [provided  further
that  this  act  shall  expire  and  be deemed repealed January 1, 2014,
provided further that the expiration and repeal of this  act  shall  not
affect  the  carry  over of any credit allowed pursuant to this act and,
subsequent to the expiration and repeal of this  act,  such  carry  over
credits  shall  be allowed as provided by and pursuant to the provisions
of this act, and] provided further that the IMB credit for energy  taxes
under  subsection  (t-l)  of  section  606  of  the tax law contained in
section three of this act shall expire on the same date as  provided  in
subdivision  (a)  of  section  49 of part Y of chapter 63 of the laws of
2000.
  S 12. This act shall take effect immediately; provided  that  sections
one  through  nine  of  this  act shall apply to applications for credit
awarded under additional pool 2 authorized by section two of this act.

                                 PART K

  Section 1. It is the intent of the legislature to clarify and  confirm
that  the  amendments made to the general municipal law by chapter 57 of
the laws of 2009 that require the revocation of certification of certain
business entities previously certified under the  empire  zones  program
are  intended  to be effective for the taxable year in which the revoca-
tion of certification occurs  and  for  all  subsequent  taxable  years,
notwithstanding that any such business entity may subsequently apply for
certification  pursuant  to  part  11  of  title 5 of the New York state
codes, rules and regulations, and that such revocations of certification
that occur in 2009 are deemed to be  in  effect  for  the  taxable  year
commencing on or after January 1, 2008 and before January 1, 2009.
  S  2.  Subdivision (a) of section 959 of the general municipal law, as
amended by section 3 of part S-1 of chapter 57 of the laws of  2009,  is
amended to read as follows:
  (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 certification
by the commissioner 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 caus-
ing individuals to transfer from existing employment with another  busi-
ness  enterprise  to  similar employment with the business enterprise so
certified, and transferring existing employment from one or  more  other
municipalities, towns or villages in the state, or transferring existing
employment  from  one  or more other businesses in the zone, (4) whether

A. 9710--B                         18

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
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 decertification by the commissioner, upon the recommendation of  the
commissioner  of  labor,  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 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  decertif-
ication  by  the commissioner 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 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 busi-
ness enterprise failed to disclose facts in its application for  certif-
ication  that  would constitute grounds for not issuing a certification;
(2) the business enterprise has failed to construct,  expand,  rehabili-
tate  or  operate  or invest in its facility substantially in accordance
with the representations 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;
(4)  where  applicable,  the business enterprise has failed to submit an
annual report after it has applied for  zone  tax  benefits  or  program
assistance  based  on new hires or investments or failed to submit other
information when due; (5) the business enterprise,  if  first  certified
pursuant  to this article prior to the first day of August, two thousand

A. 9710--B                         19

two, caused individuals to transfer from existing employment with anoth-
er business enterprise with similar ownership and located  in  New  York
state to similar employment with the certified business enterprise or if
the  enterprise  acquired,  purchased,  leased, or had transferred to it
real property previously owned by  an  entity  with  similar  ownership,
regardless  of  form  of incorporation or organization; (6) 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  business
enterprise  is  decertified with respect to an empire zone: (A) the date
determined to be the earliest event constituting  grounds  for  revoking
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; WITH  RESPECT  TO
ANY BUSINESS ENTERPRISE WHOSE CERTIFICATION HAS BEEN REVOKED PURSUANT TO
SUBPARAGRAPH  FIVE OR SIX OF THIS PARAGRAPH, THAT REVOCATION (I) WILL BE
EFFECTIVE FOR A TAXABLE YEAR BEGINNING ON OR AFTER  JANUARY  FIRST,  TWO
THOUSAND  EIGHT  AND  BEFORE  JANUARY  FIRST,  TWO THOUSAND NINE AND FOR
SUBSEQUENT TAXABLE YEARS, UNLESS THE BUSINESS ENTERPRISE IS SUBSEQUENTLY
RE-CERTIFIED PURSUANT TO PART 11 OF TITLE 5 OF THE NEW YORK STATE CODES,
RULES AND REGULATIONS FOR A BUSINESS ENTERPRISE FOR WHICH  A  REVIEW  IS
REQUIRED  TO BE CONDUCTED PURSUANT TO SUBDIVISION (W) OF THIS SECTION IN
CALENDAR YEAR TWO THOUSAND NINE, AND (II) THEREAFTER WILL  BE  EFFECTIVE
FOR  THE  TAXABLE  YEAR  DURING  WHICH THE COMMISSIONER MAKES HIS OR HER
DETERMINATION (PRIOR TO ANY APPEAL) TO REVOKE  THE  CERTIFICATION  OF  A
BUSINESS ENTERPRISE AND FOR SUBSEQUENT TAXABLE YEARS;
  S  3.  Subdivision (w) of section 959 of the general municipal law, as
amended by section 3 of part S-1 of chapter 57 of the laws of  2009,  is
amended to read as follows:
  (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
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)] (V) 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 economic, social and
environmental factors when  evaluating  the  costs  and  benefits  of  a
project  to  the  state and whether continued certification is warranted

A. 9710--B                         20

based on such factors. The commissioner shall provide written  notifica-
tion  to  such business enterprise of his or her determination to revoke
the certification, including the  reasons  therefor.  Such  notification
shall state that the business enterprise may appeal the determination 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  commis-
sioner's  revocation notification. Provided that the business enterprise
appeals the commissioner's determination within fifteen business days of
the commissioner's revocation notification, the business enterprise  may
present  a  written  submission  to the empire zone designation board no
later than sixty days following the date the  commissioner'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 business 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] SUFFICIENT evidence presented BY THE BUSI-
NESS  ENTERPRISE  demonstrating  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 subdivision (a)  of  this  section,  any  extraordinary
circumstances  occurred  which would justify the continued certification
of the business enterprise.
  S 4. Paragraph 6 of subdivision (d) of section 1119 of the tax law, as
added by section 31 of part S-1 of chapter 57 of the laws  of  2009,  is
amended to read as follows:
  (6)  Any  reference  in this chapter OR IN ANY LOCAL LAW, ORDINANCE OR
RESOLUTION ENACTED PURSUANT TO THE AUTHORITY OF ARTICLE  TWENTY-NINE  OF
THIS CHAPTER to former subdivision (z) of section eleven hundred fifteen
of  this  article  will be deemed to be a reference to this subdivision,
AND ANY SUCH LOCAL LAW,  ORDINANCE  OR  RESOLUTION  WHICH  PROVIDES  THE
EXEMPTIONS  DESCRIBED  IN  FORMER SUBDIVISION (Z) OF SUCH SECTION ELEVEN
HUNDRED FIFTEEN SHALL BE DEEMED INSTEAD TO PROVIDE THE REFUNDS AND CRED-
ITS DESCRIBED IN THIS SUBDIVISION.
  S 5. Subdivision (a) of section 17 of the tax law, as added by section
43 of part S-1 of chapter 57 of the laws of 2009, is amended to read  as
follows:
  (a)  The  department  of  taxation  and finance must publish an empire
zones tax benefits report annually by [January thirty-first] JUNE  THIR-
TIETH. The first report must be published by [January thirty-first] JUNE
THIRTIETH, two thousand [thirteen] ELEVEN.
  S  6.  Subdivision  (d) of section 44 of part S-1 of chapter 57 of the
laws of 2009, amending the general municipal law and the tax law  relat-
ing  to enacting reforms to the empire zones program, is amended to read
as follows:
  (d) section forty-two of this act shall  take  effect  on  January  1,
[2012] 2010; and
  S  7.  Subdivision  12-B  of  section 210 of the tax law is amended by
adding two new paragraphs (g) and (h) to read as follows:
  (G) NOTWITHSTANDING THE EXPIRATION OF THE EMPIRE ZONES  PROGRAM  UNDER
ARTICLE  EIGHTEEN-B  OF  THE  GENERAL  MUNICIPAL LAW, A TAXPAYER THAT IS
CERTIFIED AS A QUALIFIED INVESTMENT PROJECT  PURSUANT  TO  SUCH  ARTICLE
EIGHTEEN-B  ON  THE  DAY  IMMEDIATELY PRECEDING THE DAY THE EMPIRE ZONES
PROGRAM EXPIRED SHALL CONTINUE TO BE DEEMED CERTIFIED UNDER SUCH ARTICLE
EIGHTEEN-B FOR PURPOSES OF THIS SUBDIVISION FOR  THE  REMAINDER  OF  THE
TAXABLE  YEAR IN WHICH THE EXPIRATION OCCURRED AND FOR THE NEXT SUCCEED-

A. 9710--B                         21

ING NINE TAXABLE YEARS. IN ADDITION,  THE  AREAS  DESIGNATED  AS  EMPIRE
ZONES  IN  WHICH  THE  TAXPAYER  IS  CERTIFIED AS A QUALIFIED INVESTMENT
PROJECT ON THE DAY  IMMEDIATELY  PRECEDING  THE  DAY  THE  EMPIRE  ZONES
PROGRAM EXPIRED SHALL CONTINUE TO BE DEEMED EMPIRE ZONES FOR PURPOSES OF
THIS  SUBDIVISION  FOR  THE  REMAINDER  OF THE TAXABLE YEAR IN WHICH THE
EXPIRATION OCCURRED AND FOR THE NEXT SUCCEEDING NINE TAXABLE YEARS.
  (H) NOTWITHSTANDING THE EXPIRATION OF THE EMPIRE ZONES  PROGRAM  UNDER
ARTICLE  EIGHTEEN-B  OF THE GENERAL MUNICIPAL LAW AND EXCEPT AS PROVIDED
IN PARAGRAPH (G) OF THIS SUBDIVISION, A TAXPAYER THAT IS CERTIFIED AS AN
EMPIRE ZONE BUSINESS PURSUANT TO SUCH  ARTICLE  EIGHTEEN-B  ON  THE  DAY
IMMEDIATELY  PRECEDING  THE  DAY  THE EMPIRE ZONES PROGRAM EXPIRED SHALL
CONTINUE TO BE  DEEMED  CERTIFIED  UNDER  SUCH  ARTICLE  EIGHTEEN-B  FOR
PURPOSES  OF  THIS SUBDIVISION UNTIL APRIL FIRST, TWO THOUSAND FOURTEEN.
IN ADDITION, THE AREAS DESIGNATED AS EMPIRE ZONES IN WHICH THE  TAXPAYER
IS CERTIFIED AS AN EMPIRE ZONE BUSINESS ON THE DAY IMMEDIATELY PRECEDING
THE  DAY  THE  EMPIRE  ZONES PROGRAM EXPIRED SHALL CONTINUE TO BE DEEMED
EMPIRE ZONES FOR PURPOSES OF THIS SUBDIVISION  UNTIL  APRIL  FIRST,  TWO
THOUSAND FOURTEEN.
  S 8. Subsection (j) of section 606 of the tax law is amended by adding
a new paragraph 7 to read as follows:
  (7)  NOTWITHSTANDING  THE EXPIRATION OF THE EMPIRE ZONES PROGRAM UNDER
ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL  LAW,  A  TAXPAYER  THAT  IS
CERTIFIED AS AN EMPIRE ZONE BUSINESS PURSUANT TO SUCH ARTICLE EIGHTEEN-B
ON  THE  DAY  IMMEDIATELY  PRECEDING  THE  DAY  THE EMPIRE ZONES PROGRAM
EXPIRED SHALL CONTINUE TO BE DEEMED CERTIFIED UNDER SUCH  ARTICLE  EIGH-
TEEN-B  FOR PURPOSES OF THIS SUBDIVISION UNTIL APRIL FIRST, TWO THOUSAND
FOURTEEN. IN ADDITION, THE AREAS DESIGNATED AS EMPIRE ZONES IN WHICH THE
TAXPAYER IS CERTIFIED AS AN EMPIRE ZONE BUSINESS ON THE DAY  IMMEDIATELY
PRECEDING  THE DAY THE EMPIRE ZONES PROGRAM EXPIRED SHALL CONTINUE TO BE
DEEMED EMPIRE ZONES FOR PURPOSES OF THIS SUBDIVISION UNTIL APRIL  FIRST,
TWO THOUSAND FOURTEEN.
  S  9.  Subdivision  12-C  of  section 210 of the tax law is amended by
adding two new paragraphs (d) and (e) to read as follows:
  (D) NOTWITHSTANDING THE EXPIRATION OF THE EMPIRE ZONES  PROGRAM  UNDER
ARTICLE  EIGHTEEN-B  OF  THE  GENERAL  MUNICIPAL LAW, A TAXPAYER THAT IS
CERTIFIED AS A QUALIFIED INVESTMENT PROJECT  PURSUANT  TO  SUCH  ARTICLE
EIGHTEEN-B  ON  THE  DAY  IMMEDIATELY PRECEDING THE DAY THE EMPIRE ZONES
PROGRAM EXPIRED SHALL CONTINUE TO BE DEEMED CERTIFIED UNDER SUCH ARTICLE
EIGHTEEN-B FOR PURPOSES OF THIS SUBDIVISION FOR  THE  REMAINDER  OF  THE
TAXABLE  YEAR IN WHICH THE EXPIRATION OCCURRED AND FOR THE NEXT SUCCEED-
ING NINE TAXABLE YEARS. IN ADDITION,  THE  AREAS  DESIGNATED  AS  EMPIRE
ZONES  IN  WHICH  THE  TAXPAYER  IS  CERTIFIED AS A QUALIFIED INVESTMENT
PROJECT ON THE DAY  IMMEDIATELY  PRECEDING  THE  DAY  THE  EMPIRE  ZONES
PROGRAM EXPIRED SHALL CONTINUE TO BE DEEMED EMPIRE ZONES FOR PURPOSES OF
THIS  SUBDIVISION  FOR  THE  REMAINDER  OF THE TAXABLE YEAR IN WHICH THE
EXPIRATION OCCURRED AND FOR THE NEXT SUCCEEDING NINE TAXABLE YEARS.
  (E) NOTWITHSTANDING THE EXPIRATION OF THE EMPIRE ZONES  PROGRAM  UNDER
ARTICLE  EIGHTEEN-B  OF THE GENERAL MUNICIPAL LAW AND EXCEPT AS PROVIDED
IN PARAGRAPH (D) OF THIS SUBDIVISION, A TAXPAYER THAT IS CERTIFIED AS AN
EMPIRE ZONE BUSINESS PURSUANT TO SUCH  ARTICLE  EIGHTEEN-B  ON  THE  DAY
IMMEDIATELY  PRECEDING  THE  DAY  THE EMPIRE ZONES PROGRAM EXPIRED SHALL
CONTINUE TO BE DEEMED IN THE EMPIRE  ZONE  IN  WHICH  THE  TAXPAYER  WAS
CERTIFIED  AS  AN  EMPIRE ZONE BUSINESS ON THE DAY IMMEDIATELY PRECEDING
THE DAY THE EMPIRE ZONES PROGRAM EXPIRED FOR EACH  OF  THE  THREE  YEARS
NEXT  SUCCEEDING THE TAXABLE YEAR FOR WHICH THE CREDIT UNDER SUBDIVISION
TWELVE-B IS ALLOWED.

A. 9710--B                         22

  S 10. Subsection (j-1) of section 606 of the tax  law  is  amended  by
adding a new subdivision (4) to read as follows:
  (4)  NOTWITHSTANDING  THE EXPIRATION OF THE EMPIRE ZONES PROGRAM UNDER
ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL  LAW,  A  TAXPAYER  THAT  IS
CERTIFIED AS AN EMPIRE ZONE BUSINESS PURSUANT TO SUCH ARTICLE EIGHTEEN-B
ON  THE  DAY  IMMEDIATELY  PRECEDING  THE  DAY  THE EMPIRE ZONES PROGRAM
EXPIRED SHALL CONTINUE TO BE DEEMED IN THE  EMPIRE  ZONE  IN  WHICH  THE
TAXPAYER WAS CERTIFIED AS AN EMPIRE ZONE BUSINESS ON THE DAY IMMEDIATELY
PRECEDING THE DAY THE EMPIRE ZONES PROGRAM EXPIRED FOR EACH OF THE THREE
YEARS NEXT SUCCEEDING THE TAXABLE YEAR FOR WHICH THE CREDIT UNDER SUBDI-
VISION (J) IS ALLOWED.
  S 11. Section 14 of the tax law is amended by adding a new subdivision
(h) to read as follows:
  (H)  SALES  AND  USE TAX. (1) IN ADDITION TO THE OTHER REQUIREMENTS OF
THIS SECTION, FOR BUSINESS ENTERPRISES  CERTIFIED  PURSUANT  TO  ARTICLE
EIGHTEEN-B  OF THE GENERAL MUNICIPAL LAW PRIOR TO APRIL FIRST, TWO THOU-
SAND NINE, IN ORDER FOR AN EXEMPTION UNDER SUBDIVISION  (Z)  OF  SECTION
ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER OR THE CREDIT OR REFUND DESCRIBED
IN SUBDIVISION (D) OF SECTION ELEVEN HUNDRED NINETEEN OF THIS CHAPTER OR
ANY LIKE EXEMPTION OR CREDIT OR REFUND IMPOSED PURSUANT TO THE AUTHORITY
OF ARTICLE TWENTY-NINE OF THIS CHAPTER TO APPLY WITH RESPECT TO A QUALI-
FIED  EMPIRE ZONE ENTERPRISE, SUCH ENTERPRISE SHALL APPLY TO THE COMMIS-
SIONER OF TAXATION AND FINANCE FOR THE ISSUANCE OF  A  QUALIFIED  EMPIRE
ZONE  ENTERPRISE  CERTIFICATION  IN THE MANNER PRESCRIBED BY THE COMMIS-
SIONER. IF SUCH COMMISSIONER GRANTS  SUCH  CERTIFICATION,  SUCH  CERTIF-
ICATION  SHALL  BE SUBJECT TO CONDITIONS SPECIFIED BY SUCH COMMISSIONER.
NOTHING HEREIN OR IN ANY OTHER LAW SHALL BE CONSTRUED  TO  PROHIBIT  THE
DISCLOSURE,  IN  SUCH MANNER AS THE COMMISSIONER OF TAXATION AND FINANCE
DEEMS APPROPRIATE, OF THE NAMES AND OTHER APPROPRIATE IDENTIFYING INFOR-
MATION OF THOSE PERSONS HOLDING  QUALIFIED  EMPIRE  ZONE  CERTIFICATIONS
PURSUANT  TO THIS SUBDIVISION, THOSE PERSONS WHOSE QUALIFIED EMPIRE ZONE
ENTERPRISE CERTIFICATIONS HAVE BEEN REVOKED OR PERSONS  WHOSE  QUALIFIED
EMPIRE  ZONE  ENTERPRISE  CERTIFICATIONS  HAVE EXPIRED. THE COMMISSIONER
SHALL NOT GRANT ANY CERTIFICATIONS PURSUANT TO  THIS  SUBDIVISION  AFTER
JUNE THIRTIETH, TWO THOUSAND TEN.
  (2)  A BUSINESS ENTERPRISE, CERTIFIED AS AN EMPIRE ZONE BUSINESS UNDER
ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW PRIOR  TO  APRIL  FIRST,
TWO  THOUSAND  NINE, AND CERTIFIED AS A QUALIFIED EMPIRE ZONE ENTERPRISE
BY THE COMMISSIONER OF TAXATION AND FINANCE PRIOR TO AUGUST  FIRST,  TWO
THOUSAND  NINE, IS ELIGIBLE TO CLAIM THE EXEMPTION UNDER SUBDIVISION (Z)
OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER OR ANY LIKE  EXEMPTION
FROM  TAX  IMPOSED  PURSUANT  TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF
THIS CHAPTER UNTIL SEPTEMBER FIRST, TWO THOUSAND NINE, PROVIDED THAT THE
OTHER REQUIREMENTS OF THE STATUTE ARE MET. A BUSINESS ENTERPRISE  CERTI-
FIED  AS AN EMPIRE ZONE BUSINESS UNDER ARTICLE EIGHTEEN-B OF THE GENERAL
MUNICIPAL LAW PRIOR TO APRIL FIRST, TWO THOUSAND NINE, AND CERTIFIED  AS
A  QUALIFIED  EMPIRE ZONE ENTERPRISE BY THE COMMISSIONER OF TAXATION AND
FINANCE AS OF OR PRIOR TO JUNE FIRST, TWO THOUSAND TEN, IS  ELIGIBLE  TO
CLAIM  THE  CREDIT  OR  REFUND  UNDER  SUBDIVISION (D) OF SECTION ELEVEN
HUNDRED NINETEEN OF THIS CHAPTER OR ANY LIKE CREDIT  OR  REFUND  IMPOSED
PURSUANT  TO  THE  AUTHORITY  OF  ARTICLE  TWENTY-NINE  OF THIS CHAPTER,
PROVIDED THAT THE OTHER REQUIREMENTS OF THE STATUTE ARE MET  DURING  THE
TERM OF ITS SALES AND USE TAX BENEFIT PERIOD NOTWITHSTANDING THE EXPIRA-
TION OF THE EMPIRE ZONES PROGRAM UNDER ARTICLE EIGHTEEN-B OF THE GENERAL
MUNICIPAL LAW.

A. 9710--B                         23

  (3) DURING THE PERIOD THAT A BUSINESS ENTERPRISE IS ELIGIBLE TO APPLY,
OR IS QUALIFIED, FOR AN EXEMPTION OR A CREDIT OR REFUND OF THE SALES AND
COMPENSATING  USE TAXES UNDER THIS SECTION, THE COMMISSIONER OF ECONOMIC
DEVELOPMENT SHALL, AT THE TIME SUCH COMMISSIONER CERTIFIES  OR  DECERTI-
FIES  A  BUSINESS  ENTERPRISE  UNDER  ARTICLE  EIGHTEEN-B OF THE GENERAL
MUNICIPAL LAW, NOTIFY THE COMMISSIONER OF TAXATION AND FINANCE  OF  SUCH
CERTIFICATION  OR  DECERTIFICATION, WHICH NOTIFICATION SHALL INCLUDE THE
FULL LEGAL NAME, ADDRESS AND FEDERAL EMPLOYER IDENTIFICATION  NUMBER  OF
SUCH  ENTERPRISE. THE COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL, AT THE
TIME OF ANY SUCH CERTIFICATION,  ALSO  ADVISE  SUCH  ENTERPRISE  OF  THE
REQUIREMENTS IN PARAGRAPH ONE OF THIS SUBDIVISION.
  S 12. This act shall take effect immediately, provided that the amend-
ment  to  paragraph  6 of subdivision (d) of section 1119 of the tax law
made by section four of this act shall take effect on the same date  and
apply  in  the  same manner that section 31 of part S-1 of chapter 57 of
the laws of 2009 took effect and applied; provided that  the  amendments
to  section  14 of the tax law, made by section eleven of this act shall
take effect immediately and be deemed to have been  in  full  force  and
effect on April 1, 2009.

                                 PART L

  Section 1. Section 51 of chapter 298 of the laws of 1985, amending the
tax law relating to the franchise tax on banking corporations imposed by
the tax law, authorized to be imposed by any city having a population of
one  million  or  more by chapter 772 of the laws of 1966 and imposed by
the administrative code of the city of New York and  relating  to  other
provisions  of  the  tax  law,  chapter  883 of the laws of 1975 and the
administrative code of the city of New York which relates to such  fran-
chise  tax,  as amended by section 1 of part H of chapter 60 of the laws
of 2007, is amended to read as follows:
  S 51. This act shall take effect immediately and shall apply to  taxa-
ble years beginning on or after January 1, 1985, except that:
  (a) sections one through eight shall not apply to taxable years begin-
ning on or after January 1, [2010] 2011;
  (b)  sections  nine,  twelve,  the  amendment  made  to paragraph 9 of
subsection (a) of section 1452 of  the  tax  law  by  section  thirteen,
sections  fifteen,  sixteen,  eighteen,  nineteen, twenty, twenty-three,
twenty-seven, thirty and thirty-two, the amendment made to  paragraph  9
of  subdivision  (a) of section 11-640 of the administrative code of the
city of New York by section thirty-three, sections thirty-five,  thirty-
six, thirty-eight, thirty-nine, forty, and forty-five shall not apply to
corporations  other than savings banks and savings and loan associations
for taxable years beginning on or after January 1, [2010] 2011;
  (c)  sections  twenty-one,  twenty-two,  twenty-four,  forty-one   and
forty-two  shall  not apply to corporations other than savings banks and
savings and loan associations for taxable years beginning  on  or  after
January  1,  [2010] 2011, provided, however, that the provisions of such
sections which relate to the alternative minimum tax measured by taxable
assets shall continue to apply to all taxpayers for taxable years begin-
ning on or after January 1, [2010] 2011;
  (d) the amendment to the section heading and the opening paragraph  of
section 11-643.3 of the administrative code of the city of New York made
by  section  forty-three  shall  not  apply  to  corporations other than
savings banks and savings and loan associations for taxable years begin-
ning on or after January 1, [2010] 2011 with respect to those provisions

A. 9710--B                         24

of such section 11-643.3 which relate  to  the  basic  tax  measured  by
entire net income; and
  (e)  section twenty-eight, and the addition of new section 11-643.5 of
the administrative code of the city of New York made by  section  forty-
four  shall  not  apply  to  corporations  other  than savings banks and
savings and loan associations for taxable years beginning  on  or  after
January  1,  [2010] 2011, provided, however, that the provisions of such
sections which relate to  the  alternative  minimum  taxes  measured  by
assets,  issued  capital stock and one hundred twenty-five dollars shall
continue to apply to all taxpayers for taxable  years  beginning  on  or
after January 1, [2010] 2011.
  S  2.  Subdivision  (f)  of  section 110 of chapter 817 of the laws of
1987, amending the tax  law  and  the  environmental  conservation  law,
constituting  the business tax reform and rate reduction act of 1987, as
amended by section 2 of part H of chapter 60 of the  laws  of  2007,  is
amended to read as follows:
  (f) The provisions of section one hundred four of this act shall apply
to  taxable years beginning after December 31, 1986, and shall not apply
to corporations other than savings banks and savings  and  loan  associ-
ations  for  taxable years beginning on or after January 1, [2010] 2011,
provided, however, that the provisions of such section which  relate  to
the alternative minimum tax measured by taxable assets shall continue to
apply  to  all taxpayers for taxable years beginning on or after January
1, [2010] 2011.
  S 3. Subdivision (d) of section 68 of chapter 525 of the laws of 1988,
amending the tax law and the administrative code of the city of New York
relating to the imposition of taxes in the city of New York, as  amended
by  section 3 of part H of chapter 60 of the laws of 2007, is amended to
read as follows:
  (d) The provisions of section forty-six of this  act  shall  apply  to
taxable  years beginning after December 31, 1986, and shall not apply to
corporations other than savings banks and savings and loan  associations
for  taxable  years  beginning  on  or  after  January  1,  [2010] 2011,
provided, however, that the provisions of such section which  relate  to
the alternative minimum tax measured by taxable assets shall continue to
apply  to  all taxpayers for taxable years beginning on or after January
1, [2010] 2011;
  S 4. Extension of Gramm-Leach-Bliley transitional provisions.   Refer-
ences  in  subsection (m) of section 1452 of the tax law and subdivision
(1) of section 11-640 of the administrative code of the city of New York
to January 1, 2008 shall be read as January 1, 2010  and  references  in
those provisions to January 1, 2010 shall be read as January 1, 2011, as
if  those dates were specifically referenced in those provisions of law.
References in subparagraph (iv) of paragraph (2) of  subsection  (f)  of
section  1462  of  the  tax  law and subparagraph (iv) of paragraph 2 of
subdivision (f) of section 11-646 of the administrative code of the city
of New York to January 1, 2010 shall be read as January 1, 2011,  as  if
that  date  was specifically referenced in those provisions of law.  The
legislative bill drafting commission is hereby  directed  to  effectuate
this  provision,  and  shall  be  guided  by a memorandum of instruction
setting forth the specific provisions of law to be amended.  Such  memo-
randum  shall be transmitted to the legislative bill drafting commission
within thirty days of enactment of this provision. Such memorandum shall
be issued jointly by  the  governor,  the  temporary  president  of  the
senate, and the speaker of the assembly, or by the delegate of each.

A. 9710--B                         25

  S  5.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after January 1, 2010.

                                 PART M

  Section  1.  This  act enacts into law major components of legislation
relating to tax enforcement,  sales  tax  avoidance  and  statements  of
industrial  agencies  and  their  agents.    Each  component  is  wholly
contained within a Subpart identified  as  Subparts  A  through  C.  The
effective  date  for  each  particular  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 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 Subpart in  which  it
is  found.  Section  three  of this act sets forth the general effective
date of this act.

                                SUBPART A

  Section 1. The tax law is amended by adding two new sections 1808  and
1809 to read as follows:
  S  1808. PERSONAL INCOME AND EARNINGS TAXES; REPEATED FAILURE TO FILE.
(A) ANY PERSON WHO, WITH INTENT TO EVADE  PAYMENT  OF  ANY  TAX  IMPOSED
UNDER  ARTICLE TWENTY-TWO OF THIS CHAPTER OR ANY RELATED INCOME OR EARN-
INGS TAX STATUTE, FAILS TO FILE A RETURN FOR THREE  CONSECUTIVE  TAXABLE
YEARS SHALL BE GUILTY OF A CLASS E FELONY, PROVIDED THAT SUCH PERSON HAD
AN  UNPAID  TAX  LIABILITY WITH RESPECT TO EACH OF THE THREE CONSECUTIVE
TAXABLE YEARS.
  (B) IN ANY PROSECUTION FOR A VIOLATION  OF  SUBDIVISION  (A)  OF  THIS
SECTION,  IT  SHALL  BE  A  DEFENSE THAT THE DEFENDANT HAD NO UNPAID TAX
LIABILITY FOR ANY OF THE THREE CONSECUTIVE TAXABLE YEARS.
  (C) AS USED IN THIS SUBDIVISION, THE TERM "RETURN" SHALL MEAN A RETURN
REQUIRED UNDER SECTION SIX HUNDRED FIFTY-ONE OF  THIS  CHAPTER,  SECTION
11-1751  OF  THE  ADMINISTRATIVE CODE OF THE CITY OF NEW YORK OR SECTION
92-85 OR 92-105 OF THE CODES AND ORDINANCES OF THE CITY OF  YONKERS.  IT
SHALL  NOT  INCLUDE ANY INFORMATION RETURN REFERRED TO IN SUBSECTION (I)
OF SECTION SIX HUNDRED FIFTY-ONE OF THIS CHAPTER, OR SUBDIVISION (I)  OF
SECTION  11-1751  OF  SUCH CODE, OR SUBDIVISION (G) OF SECTION 92-105 OF
SUCH CODES AND ORDINANCES, OR SECTION SIX HUNDRED  FIFTY-EIGHT  OF  THIS
CHAPTER  OR SECTION 11-1758 OF SUCH CODE OR SECTION 92-111 OF SUCH CODES
AND ORDINANCES, OR ANY EMPLOYER'S RETURN REQUIRED BY SECTION SIX HUNDRED
SEVENTY-FOUR OF THIS CHAPTER OR SECTION 11-1774 OF SUCH CODE.
  S 1809. CORPORATE TAXES; REPEATED FAILURE TO FILE. (A) ANY PERSON WHO,
WITH INTENT TO EVADE PAYMENT OF  ANY  TAX  IMPOSED  UNDER  ARTICLE  NINE
(OTHER THAN UNDER SECTION ONE HUNDRED EIGHTY OR ONE HUNDRED EIGHTY-ONE),
NINE-A,  THIRTEEN,  THIRTY-TWO,  THIRTY-THREE  OR THIRTY-THREE-A OF THIS
CHAPTER, FAILS TO FILE A RETURN OR REPORT FOR THREE CONSECUTIVE  TAXABLE
YEARS SHALL BE GUILTY OF A CLASS E FELONY, PROVIDED THAT SUCH PERSON HAD
AN  UNPAID TAX LIABILITY, IN EXCESS OF THE THRESHOLD AMOUNT WITH RESPECT
TO EACH OF THE THREE CONSECUTIVE TAXABLE YEARS. THE THRESHOLD AMOUNT  IN
THE  CASE  OF A TAXABLE YEAR UNDER ARTICLE NINE-A OF THIS CHAPTER ENDING
AFTER JUNE THIRTIETH, NINETEEN HUNDRED  EIGHTY-NINE  IS  THE  APPLICABLE
FIXED  DOLLAR  MINIMUM PRESCRIBED UNDER PARAGRAPH (D) OF SUBDIVISION ONE
OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.  IN  THE  EVENT  SUCH  FIXED
DOLLAR  MINIMUM  IS  LESS  THAN TWO HUNDRED FIFTY DOLLARS, THE THRESHOLD

A. 9710--B                         26

AMOUNT IN THE CASE OF SUCH TAXABLE YEAR IS TWO HUNDRED FIFTY DOLLARS. IN
ALL OTHER CASES THE THRESHOLD AMOUNT IS TWO HUNDRED FIFTY DOLLARS.
  (B)  IN  ANY  PROSECUTION  FOR  A VIOLATION OF SUBDIVISION (A) OF THIS
SECTION, IT SHALL BE A DEFENSE THAT THE  DEFENDANT  HAD  NO  UNPAID  TAX
LIABILITY FOR ANY OF THE THREE CONSECUTIVE TAXABLE YEARS.
  (C)  AS  USED  IN  THIS SECTION, THE TERMS "RETURN" AND "REPORT" SHALL
MEAN A RETURN OR REPORT REQUIRED UNDER SECTION ONE  HUNDRED  NINETY-TWO,
TWO HUNDRED ELEVEN, TWO HUNDRED NINETY-FOUR, FOURTEEN HUNDRED SIXTY-TWO,
FIFTEEN  HUNDRED  FIFTEEN OR FIFTEEN HUNDRED FIFTY-FOUR OF THIS CHAPTER.
IT SHALL NOT INCLUDE ANY RETURN OR REPORT REFERRED  TO  IN  SECTION  ONE
HUNDRED  NINETY-SEVEN-A,  TWO HUNDRED THIRTEEN-A, FOURTEEN HUNDRED SIXTY
OR FIFTEEN HUNDRED THIRTEEN OF THIS CHAPTER.
  S 2. Paragraph (b) of subdivision 3-a of section 170 of the  tax  law,
as  amended  by  section 1 of subpart C of part V-1 of chapter 57 of the
laws of 2009, is 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.  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,  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. The commissioner shall notify the division of tax
appeals when any person requests a conference or requests to discontinue
such conference.
  S 3. Paragraph (h) of subdivision 3-a of section 170 of the  tax  law,
as added by section 2 of subpart C of part V-1 of chapter 57 of the laws
of 2009, is amended 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
other credential issued under the authority of this chapter EXCLUDING  A
CERTIFICATE  OF  REGISTRATION  OF  A  RETAIL  DEALER  UNDER SECTION FOUR
HUNDRED EIGHTY-A 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 FOR REGISTRATION AS A
RETAIL DEALER UNDER SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER AND 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 4. Paragraphs (a) and (b) of subdivision 2 of section  2008  of  the
tax law, as added by section 3 of subpart C of part V-1 of chapter 57 of
the laws of 2009, are amended to read as follows:
  (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 EXCLUDING A CERTIFICATE OF REGISTRATION OF A RETAIL DEALER UNDER
SECTION  FOUR  HUNDRED  EIGHTY-A  OF THIS CHAPTER, (ii) the denial of an

A. 9710--B                         27

application for a license, permit,  registration,  or  other  credential
issued  under the authority of this chapter excluding AN APPLICATION FOR
REGISTRATION AS A RETAIL DEALER UNDER SECTION FOUR HUNDRED  EIGHTY-A  OF
THIS  CHAPTER  AND  an  application  to renew a certificate of authority
filed pursuant to paragraph five of subdivision (a) of section one thou-
sand one hundred thirty-four of this chapter  and  any  other  law,  or,
(iii)  the imposition of a fraud penalty under this chapter, 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 confer-
ence 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 hear-
ing must be scheduled within ten business days of receipt of  the  peti-
tion.
  (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] A PARTY that delays the expedited hearing
process will extend the time limitations imposed on the tribunal or  the
administrative  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.
  S  5. Section 1807 of the tax law, as added by section 21 of subpart I
of part V-1 of chapter 57 of the laws of 2009, is  amended  to  read  as
follows:
  S  1807.  Aggregation.  For purposes of this article, the payments due
and not paid under A SINGLE 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  6. Section 34 of subpart I of part V-1 of chapter 57 of the laws of
2009, amending the criminal procedure law, the penal law,  and  the  tax
law  relating  to creating the offense of "tax fraud act", is amended to
read as follows:
  S 34. This act shall take effect immediately and SECTIONS TWO  THROUGH
THIRTY-THREE  OF THIS ACT SHALL apply to offenses committed on and after
such effective date.
  S 7. This act shall take effect  immediately;  provided  however  that
section  one  of this act shall apply to offenses committed on and after
such effective date.

                                SUBPART B

  Section 1. Subparagraph (iv) of paragraph  4  of  subdivision  (b)  of
section 1101 of the tax law, as added by chapter 93 of the laws of 1965,
clause  (B)  as amended by chapter 575 of the laws of 1965 and as renum-
bered by chapter 2 of the laws of 1995, is amended to read as follows:
  (iv) (A) The term retail sale does not include:
  [(A)] (I) The transfer of tangible personal property to a corporation,
solely in consideration for the issuance of its  stock,  pursuant  to  a
merger  or consolidation effected under the law of New York or any other
jurisdiction.

A. 9710--B                         28

  [(B)] (II) The distribution of property by a corporation to its stock-
holders as a liquidating dividend.
  [(C)] (III) The distribution of property by a partnership to its part-
ners in whole or partial liquidation.
  [(D)]  (IV)  The transfer of property to a corporation upon its organ-
ization in consideration for the issuance of its stock.
  [(E)] (V) The contribution of property to a partnership  in  consider-
ation for a partnership interest therein.
  (B)  FOR AN EXCEPTION APPLICABLE TO THIS SUBPARAGRAPH, SEE SUBDIVISION
(Q) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.
  S 2. Paragraph 17 of subdivision (b) of section 1101 of the  tax  law,
as  amended  by section 1 of part N-1 of chapter 57 of the laws of 2009,
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 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,  offi-
cers,  members,  partners,  managers or directors of affiliated 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 affil-
iated persons with respect to each other.    FOR  AN  EXCEPTION  TO  THE
EXCLUSIONS  FROM THE DEFINITION OF "RETAIL SALE" APPLICABLE TO AIRCRAFT,
SEE SUBDIVISION (Q) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.
  S 3. Section 1111 of the tax law is amended by adding a  new  subdivi-
sion (q) to read as follows:
  (Q)  (1) THE EXCLUSIONS FROM THE DEFINITION OF RETAIL SALE IN SUBPARA-
GRAPH (IV) OF PARAGRAPH  FOUR  OF  SUBDIVISION  (B)  OF  SECTION  ELEVEN
HUNDRED ONE OF THIS ARTICLE SHALL NOT APPLY TO TRANSFERS, DISTRIBUTIONS,
OR  CONTRIBUTIONS OF AN AIRCRAFT OR VESSEL, EXCEPT WHERE, IN THE CASE OF
THE EXCLUSION IN SUBCLAUSE (I) OF CLAUSE (A) OF SUCH SUBPARAGRAPH  (IV),
THE  TWO  CORPORATIONS  TO  BE MERGED OR CONSOLIDATED ARE NOT AFFILIATED
PERSONS WITH RESPECT TO EACH OTHER.  FOR PURPOSES OF  THIS  SUBDIVISION,
CORPORATIONS ARE AFFILIATED PERSONS WITH RESPECT TO EACH OTHER WHERE (I)
MORE  THAN FIVE PERCENT OF THEIR COMBINED SHARES ARE OWNED BY MEMBERS OF
THE SAME FAMILY, AS DEFINED BY  PARAGRAPH  FOUR  OF  SUBSECTION  (C)  OF
SECTION TWO HUNDRED SIXTY-SEVEN OF THE INTERNAL REVENUE CODE OF NINETEEN
HUNDRED EIGHTY-SIX; (II) ONE OF THE CORPORATIONS HAS AN OWNERSHIP INTER-
EST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN THE OTHER;
OR  (III) ANOTHER PERSON OR A GROUP OF OTHER PERSONS THAT ARE AFFILIATED
PERSONS WITH RESPECT TO EACH OTHER HOLD AN OWNERSHIP  INTEREST  OF  MORE
THAN  FIVE  PERCENT,  WHETHER  DIRECT OR INDIRECT, IN EACH OF THE CORPO-
RATIONS.
  (2) NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, IN RELATION TO  ANY
TRANSFER,  DISTRIBUTION,  OR  CONTRIBUTION OF AN AIRCRAFT OR VESSEL THAT
QUALIFIES AS A RETAIL SALE AS A RESULT OF PARAGRAPH ONE OF THIS SUBDIVI-
SION, THE SALES TAX IMPOSED BY SUBDIVISION (A) OF SECTION ELEVEN HUNDRED
FIVE OF THIS PART SHALL BE COMPUTED BASED ON  THE  PRICE  AT  WHICH  THE
SELLER PURCHASED THE TANGIBLE PERSONAL PROPERTY, PROVIDED THAT WHERE THE
SELLER  OR PURCHASER AFFIRMATIVELY SHOWS THAT THE SELLER OWNED THE PROP-
ERTY FOR SIX MONTHS  PRIOR  TO  MAKING  THE  TRANSFER,  DISTRIBUTION  OR
CONTRIBUTION COVERED BY PARAGRAPH ONE OF THIS SUBDIVISION, SUCH AIRCRAFT
OR VESSEL SHALL BE TAXED ON THE BASIS OF THE CURRENT MARKET VALUE OF THE

A. 9710--B                         29

AIRCRAFT  OR  VESSEL  AT  THE  TIME  OF  THAT TRANSFER, DISTRIBUTION, OR
CONTRIBUTION. FOR THE PURPOSES OF THE PRIOR  SENTENCE,  "CURRENT  MARKET
VALUE" SHALL NOT EXCEED THE COST OF THE AIRCRAFT OR VESSEL. SEE SUBDIVI-
SION  (B)  OF  THIS SECTION FOR A SIMILAR RULE ON THE COMPUTATION OF ANY
COMPENSATING USE TAX DUE UNDER SECTION ELEVEN HUNDRED TEN OF  THIS  PART
ON SUCH TRANSFERS, DISTRIBUTIONS, OR CONTRIBUTIONS.
  (3)  A  PURCHASER OF AN AIRCRAFT OR VESSEL COVERED BY PARAGRAPH ONE OF
THIS SUBDIVISION WILL BE ENTITLED TO A  REFUND  OR  CREDIT  AGAINST  THE
SALES  OR  COMPENSATING  USE TAX DUE AS A RESULT OF A TRANSFER, DISTRIB-
UTION, OR CONTRIBUTION OF SUCH AIRCRAFT OR VESSEL IN THE AMOUNT  OF  ANY
SALES  OR  USE TAX PAID TO THIS STATE OR ANY OTHER STATE ON THE SELLER'S
PURCHASE OR USE OF THE AIRCRAFT OR VESSEL SO TRANSFERRED, DISTRIBUTED OR
CONTRIBUTED, BUT NOT TO EXCEED THE TAX DUE  ON  THE  TRANSFER,  DISTRIB-
UTION,  OR  CONTRIBUTION OF THE AIRCRAFT OR VESSEL OR ON THE PURCHASER'S
USE IN THE STATE OF THE AIRCRAFT OR VESSEL SO  TRANSFERRED,  DISTRIBUTED
OR CONTRIBUTED.  AN APPLICATION FOR A REFUND OR CREDIT UNDER THIS SUBDI-
VISION  MUST  BE FILED AND SHALL BE IN SUCH FORM AS THE COMMISSIONER MAY
PRESCRIBE. WHERE AN APPLICATION FOR CREDIT HAS BEEN FILED, THE APPLICANT
MAY IMMEDIATELY TAKE SUCH CREDIT ON THE RETURN WHICH IS  DUE  COINCIDENT
WITH OR IMMEDIATELY SUBSEQUENT TO THE TIME THE APPLICATION FOR CREDIT IS
FILED.  HOWEVER,  THE TAKING OF THE CREDIT ON THE RETURN SHALL BE DEEMED
TO BE PART OF THE APPLICATION FOR CREDIT.  PROVIDED THAT THE COMMISSION-
ER MAY, IN HIS OR HER DISCRETION  AND  NOTWITHSTANDING  ANY  OTHER  LAW,
WAIVE  THE  APPLICATION  REQUIREMENT  FOR  ANY OR ALL CLASSES OF PERSONS
WHERE THE AMOUNT OF THE CREDIT OR REFUND IS EQUAL TO THE AMOUNT  OF  THE
TAX  DUE  FROM THE PURCHASER.   THE PROVISIONS OF SUBDIVISIONS (A), (B),
AND (C) OF SECTION ELEVEN HUNDRED  THIRTY-NINE  OF  THIS  ARTICLE  SHALL
APPLY  TO  APPLICATIONS  FOR REFUND OR CREDIT UNDER THIS SUBDIVISION. NO
INTEREST SHALL BE ALLOWED OR PAID ON ANY REFUND MADE OR  CREDIT  ALLOWED
UNDER THIS SUBDIVISION. IF A REFUND IS GRANTED OR A CREDIT ALLOWED UNDER
THIS  PARAGRAPH,  THE  SELLER  OR  PURCHASER SHALL NOT BE ELIGIBLE FOR A
REFUND OR CREDIT PURSUANT TO SUBDIVISION SEVEN OF SECTION ELEVEN HUNDRED
EIGHTEEN OF THIS ARTICLE WITH REGARD TO THE SAME PURCHASE OR USE.
  S 4. Subdivision 2 of section 1118 of  the  tax  law,  as  amended  by
section  2  of part N-1 of chapter 57 of the laws of 2009, 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
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

A. 9710--B                         30

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.  FOR AN EXCEPTION TO THE EXCLUSIONS FROM THE
DEFINITION  OF  "RETAIL  SALE"  APPLICABLE  TO AIRCRAFT AND VESSELS, SEE
SUBDIVISION (Q) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.
  S 5. This act shall take effect on June 1, 2010, 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, provided that sales or use tax paid on the seller's purchase or
use  of  the  aircraft or vessel transferred, distributed or contributed
may be refunded or credited as authorized by the new subdivision (q)  of
section  1111  of  the  tax  law, as added by section three of this act,
regardless of the date  on  which  the  seller  purchased  or  used  the
aircraft or vessel.

                                SUBPART C

  Section  1.  Section  874  of  the general municipal law is amended by
adding a new subdivision 9 to read as follows:
  (9) WITHIN THIRTY DAYS OF  THE  DATE  THAT  THE  AGENCY  DESIGNATES  A
PROJECT  OPERATOR  OR  OTHER  PERSON  TO  ACT AS AGENT OF THE AGENCY FOR
PURPOSES OF PROVIDING FINANCIAL ASSISTANCE CONSISTING OF ANY  SALES  AND
COMPENSATING  USE  TAX EXEMPTION TO SUCH PERSON, THE AGENCY SHALL FILE A
STATEMENT WITH THE DEPARTMENT OF TAXATION AND FINANCE RELATING  THERETO,
ON  A  FORM  AND  IN SUCH MANNER AS IS PRESCRIBED BY THE COMMISSIONER OF
TAXATION AND FINANCE, IDENTIFYING EACH SUCH AGENT SO NAMED BY THE  AGEN-
CY, SETTING FORTH THE TAXPAYER IDENTIFICATION NUMBER OF EACH SUCH AGENT,
GIVING  A  BRIEF DESCRIPTION OF THE PROPERTY AND/OR SERVICES INTENDED TO
BE EXEMPTED FROM SUCH TAXES AS A RESULT OF SUCH  APPOINTMENT  AS  AGENT,
INDICATING  THE  AGENCY'S  ROUGH  ESTIMATE  OF THE VALUE OF THE PROPERTY
AND/OR SERVICES TO WHICH SUCH APPOINTMENT AS AGENT  RELATES,  INDICATING
THE  DATE WHEN SUCH DESIGNATION AS AGENT BECAME EFFECTIVE AND INDICATING
THE DATE UPON WHICH SUCH DESIGNATION AS AGENT SHALL CEASE.
  S 2. Section 1963 of the public authorities law is amended  by  adding
two new subdivisions 3 and 4 to read as follows:
  3. AGENTS OF THE AUTHORITY AND PROJECT OPERATORS SHALL ANNUALLY FILE A
STATEMENT  WITH THE DEPARTMENT OF TAXATION AND FINANCE, ON A FORM AND IN
SUCH A MANNER AS IS PRESCRIBED  BY  THE  COMMISSIONER  OF  TAXATION  AND
FINANCE,  OF  THE  VALUE  OF ALL SALES AND USE TAX EXEMPTIONS CLAIMED BY
SUCH AGENTS OR AGENTS OF SUCH AGENTS OR  PROJECT  OPERATORS,  INCLUDING,
BUT  NOT  LIMITED  TO,  CONSULTANTS  OR SUBCONTRACTORS OF SUCH AGENTS OR
PROJECT OPERATORS, UNDER THE AUTHORITY GRANTED PURSUANT TO THIS SECTION.
THE PENALTY FOR FAILURE TO FILE SUCH STATEMENT SHALL BE THE  REMOVAL  OF
THE AUTHORITY TO ACT AS AN AGENT OF THE AUTHORITY OR AS A PROJECT OPERA-
TOR.
  4.  WITHIN  THIRTY  DAYS  OF  THE DATE THAT THE AUTHORITY DESIGNATES A
PROJECT OPERATOR OR OTHER PERSON TO ACT AS AGENT OF  THE  AUTHORITY  FOR
PURPOSES  OF  PROVIDING FINANCIAL ASSISTANCE CONSISTING OF ANY SALES AND
COMPENSATING USE TAX EXEMPTION TO SUCH PERSON, THE AGENCY SHALL  FILE  A
STATEMENT  WITH THE DEPARTMENT OF TAXATION AND FINANCE RELATING THERETO,
ON A FORM AND IN SUCH MANNER AS IS PRESCRIBED  BY  THE  COMMISSIONER  OF
TAXATION  AND  FINANCE,  IDENTIFYING  EACH  SUCH  AGENT  SO NAMED BY THE
AUTHORITY, SETTING FORTH THE TAXPAYER IDENTIFICATION NUMBER OF EACH SUCH
AGENT, GIVING A  BRIEF  DESCRIPTION  OF  THE  PROPERTY  AND/OR  SERVICES
INTENDED  TO BE EXEMPTED FROM SUCH TAXES AS A RESULT OF SUCH APPOINTMENT

A. 9710--B                         31

AS AGENT, INDICATING THE AUTHORITY'S ROUGH ESTIMATE OF THE VALUE OF  THE
PROPERTY  AND/OR  SERVICES  TO  WHICH SUCH APPOINTMENT AS AGENT RELATES,
INDICATING THE DATE WHEN SUCH DESIGNATION AS AGENT BECAME EFFECTIVE  AND
INDICATING THE DATE UPON WHICH SUCH DESIGNATION AS AGENT SHALL CEASE.
  S  3.  Section 2326 of the public authorities law is amended by adding
two new subdivisions 3 and 4 to read as follows:
  3. AGENTS OF THE AUTHORITY AND PROJECT OPERATORS SHALL ANNUALLY FILE A
STATEMENT WITH THE DEPARTMENT OF TAXATION AND FINANCE, ON A FORM AND  IN
SUCH  A  MANNER  AS  IS  PRESCRIBED  BY THE COMMISSIONER OF TAXATION AND
FINANCE, OF THE VALUE OF ALL SALES AND USE  TAX  EXEMPTIONS  CLAIMED  BY
SUCH  AGENTS  OR  AGENTS OF SUCH AGENTS OR PROJECT OPERATORS, INCLUDING,
BUT NOT LIMITED TO, CONSULTANTS OR  SUBCONTRACTORS  OF  SUCH  AGENTS  OR
PROJECT OPERATORS, UNDER THE AUTHORITY GRANTED PURSUANT TO THIS SECTION.
THE  PENALTY  FOR FAILURE TO FILE SUCH STATEMENT SHALL BE THE REMOVAL OF
THE AUTHORITY TO ACT AS AN AGENT OF THE AUTHORITY OR AS A PROJECT OPERA-
TOR.
  4. WITHIN THIRTY DAYS OF THE DATE  THAT  THE  AUTHORITY  DESIGNATES  A
PROJECT  OPERATOR  OR  OTHER PERSON TO ACT AS AGENT OF THE AUTHORITY FOR
PURPOSES OF PROVIDING FINANCIAL ASSISTANCE CONSISTING OF ANY  SALES  AND
COMPENSATING  USE  TAX EXEMPTION TO SUCH PERSON, THE AGENCY SHALL FILE A
STATEMENT WITH THE DEPARTMENT OF TAXATION AND FINANCE RELATING  THERETO,
ON  A  FORM  AND  IN SUCH MANNER AS IS PRESCRIBED BY THE COMMISSIONER OF
TAXATION AND FINANCE, IDENTIFYING  EACH  SUCH  AGENT  SO  NAMED  BY  THE
AUTHORITY, SETTING FORTH THE TAXPAYER IDENTIFICATION NUMBER OF EACH SUCH
AGENT,  GIVING  A  BRIEF  DESCRIPTION  OF  THE  PROPERTY AND/OR SERVICES
INTENDED TO BE EXEMPTED FROM SUCH TAXES AS A RESULT OF SUCH  APPOINTMENT
AS  AGENT, INDICATING THE AUTHORITY'S ROUGH ESTIMATE OF THE VALUE OF THE
PROPERTY AND/OR SERVICES TO WHICH SUCH  APPOINTMENT  AS  AGENT  RELATES,
INDICATING  THE DATE WHEN SUCH DESIGNATION AS AGENT BECAME EFFECTIVE AND
INDICATING THE DATE UPON WHICH SUCH DESIGNATION AS AGENT SHALL CEASE.
  S 4. This act shall take effect immediately, provided, however, that:
  (a) section one of this act shall be deemed to have been in full force
and effect on and after January 31, 2008;
  (b) sections two and three of this act shall be deemed to have been in
full force and effect on and after January 1, 2010; and
  (c) any statement of an industrial development agency or authority  to
the department of taxation and finance required by this act with respect
to  having  appointed  an agent or project operator before the effective
date of this act shall be deemed timely if it is filed within 90 days of
such date.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included herein.
  S  3.  This  act shall take effect immediately provided, however, that
the applicable effective date of Subparts A through C of this act  shall
be as specifically set forth in the last section of such Subparts.

                                 PART N

A. 9710--B                         32

  Section 1. Subsection (a) of section 951 of the tax law, as amended by
section  1  of  part A of chapter 407 of the laws of 1999, is amended to
read as follows:
  (a) Dates. For purposes of this article, any reference to the internal
revenue code means the United States Internal Revenue Code of 1986, with
all amendments enacted on or before July twenty-second, nineteen hundred
ninety-eight,  and, unless specifically provided otherwise in this arti-
cle, any reference to December thirty-first, nineteen  hundred  seventy-
six  or  January  first, nineteen hundred seventy-seven contained in the
provisions of such code which are applicable to the determination of the
tax imposed by this article shall be read as a reference to June thirti-
eth, nineteen hundred seventy-eight  or  July  first,  nineteen  hundred
seventy-eight,  respectively. Notwithstanding the foregoing, the unified
credit against the estate tax provided in section two  thousand  ten  of
the  internal  revenue  code shall, for purposes of this article, be the
amount [allowed by such section under  the  applicable  federal  law  in
effect on the decedent's date of death. Provided, however, the amount of
such  credit allowable for purposes of this article shall not exceed the
amount] allowable as if the federal [unified credit did not  exceed  the
tax due under section two thousand one of the internal revenue code on a
federal  taxable estate of] APPLICABLE EXCLUSION AMOUNT WERE one million
dollars.
  S 2. This act shall take effect immediately and shall apply to estates
of decedents dying on or after January 1, 2010.

                                 PART O

  Section 1. The article heading of article 29-A  of  the  tax  law,  as
added  by  section  1  of  part  E of chapter 25 of the laws of 2009, is
amended to read as follows:
                 TAX ON MEDALLION TAXICAB [RIDES] TRIPS
          IN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT
  S 2. Subdivisions (d), (e), (f) and (h) of section  1280  of  the  tax
law,  as added by section 1 of part E of chapter 25 of the laws of 2009,
are amended and six new subdivisions (i), (j), (k), (l), (m) and (n) are
added to read as follows:
  (d) "Taxicab" means a motor vehicle [carrying passengers for  hire  in
the  city,  duly]  licensed by the [taxi and limousine commission of the
city] TLC TO CARRY PASSENGERS FOR HIRE  and  [permitted]  AUTHORIZED  to
accept hails from prospective passengers in the street.
  (e)  "Taxicab [ride] TRIP" means a taxicab [ride] TRIP provided to one
or more passengers [to a given destination] REGARDLESS OF THE NUMBER  OF
STOPS,  FOR  WHICH  THE  TAXIMETER IS REQUIRED TO BE IN THE RECORDING OR
HIRED POSITION.
  (f) "Taxicab owner" OR "OWNER" means a person [owning  a  taxicab  and
shall  include  a  purchaser under a reserve title contract, conditional
sales agreement or vendor's lien agreement. In addition, an owner  shall
be deemed to include any lessee, licensee or bailee having the exclusive
use  of  a  taxicab,  under a lease or otherwise, for a period of thirty
days or more] LICENSED BY  THE  TLC  TO  OWN  AND  OPERATE  A  MEDALLION
TAXICAB.
  (h)  "Taximeter"  [shall  include  any device which, when affixed to a
motor vehicle, is so constructed as to operate as a fare indicator and a
time and distance register for the purpose of automatically  determining
the  charge for which a passenger becomes liable] MEANS AN INSTRUMENT OR
DEVICE APPROVED BY THE TLC BY WHICH THE CHARGE TO A PASSENGER  FOR  HIRE

A. 9710--B                         33

OF  A  LICENSED  TAXICAB  IS  AUTOMATICALLY CALCULATED AND ON WHICH SUCH
CHARGE IS PLAINLY INDICATED.
  (I) "TLC" MEANS THE TAXI AND LIMOUSINE COMMISSION OF THE CITY.
  (J)  "AGENT"  MEANS  A  PERSON  THAT ACTS, BY EMPLOYMENT, CONTRACT, OR
OTHERWISE, ON BEHALF OF ONE OR MORE TAXICAB OWNERS TO OPERATE OR PROVIDE
FOR THE OPERATION OF A LICENSED MEDALLION TAXICAB IN ACCORDANCE WITH THE
TLC'S RULES.  "AGENT" SHALL NOT INCLUDE AN  ATTORNEY  OR  REPRESENTATIVE
WHO  APPEARS  ON  BEHALF  OF  ONE OR MORE OWNERS BEFORE THE TLC, THE TLC
HEARING TRIBUNAL, THE COMMISSIONER, OR THE NEW YORK  STATE  DIVISION  OF
TAX  APPEALS,  AND  TAXICAB DRIVERS LICENSED PURSUANT TO CHAPTER FIVE OF
TITLE NINETEEN OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW  YORK  WHEN
ACTING IN THAT CAPACITY.
  (K)  "MEDALLION"  MEANS  A  PLATE  ISSUED  BY  THE TLC AS THE PHYSICAL
EVIDENCE OF A TAXICAB LICENSE, AND AFFIXED TO THE OUTSIDE OF SUCH  TAXI-
CAB.
  (L)  "TAXICAB  LICENSE"  MEANS  THE AUTHORITY GRANTED BY THE TLC TO AN
OWNER TO OPERATE A DESIGNATED VEHICLE AS A TAXICAB IN THE CITY.
  (M) "TRIP RECORD," ALSO KNOWN AS A TRIP SHEET OR TRIP LOG,  MEANS  THE
WRITTEN,  COMPUTERIZED,  AUTOMATED OR ELECTRONIC ACCOUNTING OF A TAXICAB
RIDE.  THE TRIP DATA TO BE TRANSMITTED OR  RECORDED  SHALL  INCLUDE  THE
TAXICAB  LICENSE NUMBER (MEDALLION NUMBER); THE TAXICAB DRIVER'S LICENSE
NUMBER; THE LOCATION OF TRIP INITIATION; THE TIME  OF  TRIP  INITIATION;
THE  NUMBER OF PASSENGERS; THE LOCATION OF TRIP TERMINATION; THE TIME OF
TRIP TERMINATION;  THE  ITEMIZED  METERED  FARE  FOR  THE  TRIP  (TOLLS,
SURCHARGE, AND TIP IF PAID BY CREDIT OR DEBIT CARD); THE DISTANCE OF THE
TRIP,  THE  TRIP  NUMBER,  THE  METHOD  OF  PAYMENT, THE TOTAL NUMBER OF
PASSENGERS, AS WELL AS SUCH OTHER INFORMATION AS MAY BE REQUIRED BY  THE
TLC.
  (N)  "MEDALLION TAXICAB" MEANS A TAXICAB TO WHICH A MEDALLION HAS BEEN
AFFIXED IN ACCORDANCE WITH APPLICABLE LAW AND REGULATIONS.
  S 3. Section 1281 of the tax law, as added by section 1 of part  E  of
chapter 25 of the laws of 2009, is amended to read as follows:
  S  1281.  Imposition  of  tax. In addition to any other tax imposed by
this chapter or other law, there is  hereby  imposed  on  every  taxicab
owner  a tax of fifty cents per taxicab [ride] TRIP on every [ride] TRIP
that originates in the city and terminates anywhere within the  territo-
rial boundaries of the MCTD.
  S  4.  Section 1282 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1282. Presumption of taxability.  For  the  purpose  of  the  proper
administration of this article and to prevent evasion of the tax imposed
by  this  article,  it  shall be presumed that every taxicab [ride] TRIP
that originates in the city is subject to the tax imposed by this  arti-
cle.    This presumption shall prevail until the contrary is proven, and
the burden of proving the contrary shall be on  the  person  liable  for
[payment of the] tax.
  S  5.  Section 1283 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1283. [Special] LIABILITY FOR TAX; SPECIAL provisions. Notwithstand-
ing any [provisions] PROVISION of [this article] LAW  to  the  contrary:
(a) [If a taxicab owner subject to the tax imposed by this article leas-
es,  rents  or  otherwise furnishes a taxicab to an unrelated person who
uses the taxicab to provide taxicab rides originating in the city, then:
(1) the owner is deemed to provide such taxicab rides during the day  or
other  period that the unrelated person uses the taxicab to provide such
rides; (2) the tax imposed by this article  shall  be  imposed  on  such

A. 9710--B                         34

owner; and (3) the owner must pay the tax imposed by this article on the
number  of  rides  subject to such tax provided by such unrelated person
during the day or other period] THE TAXICAB OWNER SHALL  BE  LIABLE  FOR
THE  TAX  IMPOSED BY THIS ARTICLE. IF THE OWNER HAS DESIGNATED AN AGENT,
THEN THE AGENT SHALL BE JOINTLY LIABLE WITH THE OWNER  FOR  THE  TAX  ON
TRIPS  OCCURRING  DURING  THE PERIOD THAT SUCH DESIGNATION IS IN EFFECT.
EVEN IF THE TLC HAS SPECIFIED THAT THE OWNER'S AGENT CANNOT  OPERATE  AS
AN AGENT, THAT AGENT SHALL BE JOINTLY LIABLE WITH THE OWNER IF THE AGENT
HAS  ACTED  FOR THE OWNER. DURING THE PERIOD THAT AN OWNER'S DESIGNATION
OF AN AGENT IS IN EFFECT, THE AGENT SHALL FILE THE RETURNS  REQUIRED  BY
THIS  ARTICLE  AND PAY ANY TAX DUE WITH SUCH RETURN, BUT THE OWNER SHALL
NOT BE RELIEVED OF LIABILITY FOR TAX, PENALTY OR INTEREST DUE UNDER THIS
ARTICLE, OR FOR THE FILING OF RETURNS REQUIRED TO BE FILED,  UNLESS  THE
AGENT HAS TIMELY FILED ACCURATE RETURNS AND TIMELY PAID THE TAX REQUIRED
TO BE PAID UNDER THIS ARTICLE. IF AN OWNER HAS DESIGNATED AN AGENT, THEN
THE  AGENT  MUST  PERFORM  ANY  ACT  THIS  ARTICLE  REQUIRES AN OWNER TO
PERFORM, BUT THE FAILURE OF SUCH AGENT TO PERFORM ANY SUCH ACT SHALL NOT
RELIEVE THE OWNER FROM THE OBLIGATION TO PERFORM SUCH ACT  OR  FROM  ANY
LIABILITY THAT MAY ARISE FROM FAILURE TO PERFORM THE ACT.
  (b) [Notwithstanding any law to the contrary:] (1) Although the tax is
imposed  on  the  taxicab owner, the [taxicab owner must pass along the]
CITY OR THE TLC SHALL ADOPT OR AMEND ORDINANCES OR REGULATIONS TO ENSURE
THAT THE economic incidence of the tax IS PASSED THROUGH to [the passen-
ger] PASSENGERS, SUCH AS by [adjusting the fare for the ride,  and  the]
INCREASING  TAXICAB TRIP FARES. THE passing along of such economic inci-
dence may not be construed by any court or administrative body as impos-
ing the tax on [the] ANY person [or entity that  pays  the  fare  for  a
ride]  OTHER THAN THE TAXICAB OWNER.  [A] THE city [that regulates taxi-
cabs or taxicab fares] OR THE TLC must adjust [the] TRIP fares  [author-
ized]  to  include therein the PASS-THROUGH OF THE ECONOMIC INCIDENCE OF
THE tax imposed by this article, as the rate of such tax may  from  time
to  time change, and must timely require that any taximeter in a taxicab
used to provide [rides] TRIPS THAT ORIGINATE in the city be adjusted  to
include the [tax] PASS-THROUGH.
  (2)  A  taxicab owner in such city must timely adjust the taximeter in
any of such person's taxicabs so that it reflects [the  tax  imposed  by
this  article]  SUCH PASS-THROUGH as such [rate] PASS-THROUGH AMOUNT may
from time to time change.
  (3) Neither the failure of such city OR THE TLC to  adjust  fares  nor
the  failure  of  a  taxicab owner OR OTHER PERSON to adjust a taximeter
will relieve any person liable for the tax imposed by this article  from
the obligation to pay such tax timely, at the correct rate.
  [(c)  For  purposes of this section, "unrelated person" means a person
other than a related person as defined for purposes of section  fourteen
of this chapter.]
  S  6.  Section 1284 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1284. Returns. Every person liable for the tax imposed by this arti-
cle shall file a return quarterly with  the  commissioner.  Each  return
shall  show  the  number  of  [rides] TRIPS in the quarter for which the
return is filed, together with such other information as the commission-
er may require. The returns required by this section shall be filed  for
quarterly  periods ending on the last day of March, June, September, and
December of each year, and each return shall be filed within twenty days
after the end of the quarterly period covered thereby. Every such person
shall also file a return with the commissioner for the period of  Novem-

A. 9710--B                         35

ber  and  December two thousand nine, by January twentieth, two thousand
ten, containing the information described  above.  If  the  commissioner
deems  it necessary in order to ensure the payment of the tax imposed by
this article, the commissioner may require returns to be made for short-
er  periods than prescribed by the foregoing provisions of this section,
and upon such dates as the commissioner may specify. The form of returns
shall be prescribed by the commissioner and shall contain such  informa-
tion  as  the  commissioner  may  deem necessary for the proper adminis-
tration of this article. The commissioner may require amended returns to
be filed within twenty days after notice and to contain the  information
specified  in  the notice. The commissioner may require that the returns
be filed electronically.
  S 7. Section 1285 of the tax law, as added by section 1 of part  E  of
chapter 25 of the laws of 2009, is amended to read as follows:
  S  1285.  Payment of tax. Every person required to file a return under
this article shall, at the time  of  filing  such  return,  pay  to  the
commissioner  the  total  of  all  tax  imposed  by this article, on the
correct number of [rides] TRIPS subject to tax under this  article.  The
amount  so payable to the commissioner for the period for which a return
is required to be filed shall be due and payable to the commissioner  on
the  date  limited for the filing of the return for such period, without
regard to whether a return is filed or whether the return which is filed
correctly shows the correct number of [rides] TRIPS or the amount of tax
due thereon. The commissioner may require that the tax be paid electron-
ically.
  S 8. Section 1286 of the tax law, as added by section 1 of part  E  of
chapter 25 of the laws of 2009, is amended to read as follows:
  S  1286. Records to be kept. (A) Every person [required to pay] LIABLE
FOR any tax imposed by this article shall keep:
  (1) records of every [ride] TAXICAB TRIP originating in the  city  and
of all amounts paid, charged or due thereon and of the tax payable ther-
eon,  in  such  form as the commissioner may require[. Every such person
shall also keep];
  (2) a true and complete copy of every contract, agreement, or arrange-
ment concerning the lease, rental, or license to use a taxicab for which
the person is required to remit the tax on [rides] TRIPS imposed by this
article on such person;
  (3) A TRUE AND COMPLETE COPY OF EVERY CONTRACT, AGREEMENT, OR ARRANGE-
MENT CONCERNING THE APPOINTMENT OF AN AGENT;
  (4) TRUE AND COMPLETE COPIES OF ANY RECORDS REQUIRED TO BE KEPT BY THE
TLC; AND
  (5) SUCH OTHER RECORDS AND INFORMATION AS THE COMMISSIONER MAY REQUIRE
TO PERFORM HIS OR HER DUTIES UNDER THIS ARTICLE.
  [Such] (B) THE records REQUIRED TO BE KEPT BY THIS  SECTION  shall  be
available  for inspection and examination at any time upon demand by the
commissioner or the commissioner's duly authorized agent or employee and
shall be preserved for a period of three years, except that the  commis-
sioner  may  consent  to  their  destruction  within  that period or may
require that they be kept longer. Such records may be  kept  within  the
meaning  of this section when reproduced on any photographic, photostat-
ic, microfilm, micro-card, miniature photographic or other process which
actually reproduces the original record. If those records are maintained
in an electronic format, they must be made available and  accessible  to
the commissioner in electronic format.

A. 9710--B                         36

  S  9.  Subdivision  (b)  of  section  1287 of the tax law, as added by
section 1 of part E of chapter 25 of the laws of  2009,  is  amended  to
read as follows:
  (b) Notwithstanding the provisions of subdivision (a) of this section,
the  commissioner may, in his or her discretion, permit the proper offi-
cer of [a] THE city [that regulates taxicabs]  or  the  duly  authorized
representative  of  such officer, to inspect any return filed under this
article, or may furnish to such officer  or  such  officer's  authorized
representative an abstract of any such return or supply such person with
information  concerning  an  item  contained  in  any  such  return,  or
disclosed by any investigation of tax liability under this article;  but
such  permission  shall be granted or such information furnished only if
[such] THE city OR THE TLC shall have furnished  the  commissioner  with
all  information  requested by the commissioner pursuant to this article
and shall have permitted the commissioner or the commissioner's  author-
ized  representative  to  make  any inspection of any records or reports
concerning taxicabs [and their],  TAXICAB  owners  [or  operators],  AND
AGENTS filed with or possessed by such city OR THE TLC which the commis-
sioner  may have requested from such city OR THE TLC. PROVIDED, FURTHER,
THAT THE COMMISSIONER MAY DISCLOSE TO THE CITY OR THE TLC WHETHER OR NOT
A PERSON LIABLE FOR THE TAX IMPOSED BY THIS ARTICLE HAS PAID ALL OF  THE
TAX DUE UNDER THIS ARTICLE AS OF ANY GIVEN DATE.
  S  10. Section 1289 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1289. Cooperation by city. The city AND THE TLC shall cooperate with
and assist the commissioner to effect the purposes of this  article  and
the commissioner's responsibilities under this article. Such cooperation
shall  include furnishing the names, addresses and all other information
concerning every TAXICAB owner, operator, and driver of taxicabs in  the
city, AND CONCERNING EVERY AGENT AND VEHICLE OWNER, AND THE TRIP RECORDS
AND  OTHER  RECORDS  OF  ANY OF THEM, IN THE CITY'S POSSESSION OR IN THE
POSSESSION OF ANY OF ITS AGENCIES OR  INSTRUMENTALITIES,  together  with
any other information the commissioner requests, all without cost to the
commissioner.
  S  11. Section 1290 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1290. Practice and procedure. The provisions of article twenty-seven
of this chapter shall apply with respect to the  administration  of  and
procedure  with  respect  to the tax imposed by this article in the same
manner and with the same force and effect as if  the  language  of  such
article twenty-seven had been incorporated in full into this article and
had  expressly  referred  to  the  tax under this article, except to the
extent that any such provision is either inconsistent with  a  provision
of  this article or is not relevant to this article. [Criminal penalties
provided in section one thousand eight hundred twenty  of  this  chapter
shall  apply  in the same manner and with the same force and effect with
respect to this article.]
  S 12. The tax law is amended by adding a new section 1821 to  read  as
follows:
  S  1821.  MEDALLION  TAXICAB  OWNERS  TAX IN THE METROPOLITAN COMMUTER
TRANSPORTATION DISTRICT. ANY WILLFUL ACT OR OMISSION BY ANY PERSON WHICH
CONSTITUTES A VIOLATION OF ANY PROVISION  OF  ARTICLE  TWENTY-NINE-A  OF
THIS CHAPTER SHALL CONSTITUTE A MISDEMEANOR.
  S  13.  Section  19-504  of the administrative code of the city of New
York is amended by adding a new subdivision q to read as follows:

A. 9710--B                         37

  Q. NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, THE COMMISSION SHALL
NOT ISSUE OR RENEW A TAXICAB LICENSE UNLESS THE APPLICANT OR HOLDER,  AS
THE  CASE  MAY  BE,  AVOWS UNDER PENALTY OF PERJURY THAT SUCH PERSON HAS
FULLY  PAID  ALL  AND  ANY  TAX  IMPOSED  ON  SUCH  PERSON  BY   ARTICLE
TWENTY-NINE-A OF THE TAX LAW. THE COMMISSION MAY ASK THE COMMISSIONER OF
TAXATION  AND  FINANCE  FOR  CONFIRMATION THAT SUCH PERSON HAS PAID SUCH
TAX.  NOTHING IN THIS SUBDIVISION SHALL PREVENT A PERSON TO WHOM A TAXI-
CAB LICENSE HAS BEEN ISSUED FROM MOVING THE  MEDALLION  WHICH  EVIDENCES
THE  LICENSE  TO  A STANDBY VEHICLE IF THE TLC'S REGULATIONS PERMIT SUCH
PERSON TO DO SO.
  S 14. This act shall take effect July 1,  2010,  and  shall  apply  to
taxicab trips commencing on or after that date; provided that:
  (a)  the  provisions of article 29-A of the tax law in existence prior
to that date shall continue to apply to all liabilities  accrued  up  to
that date; and
  (b)  sections nine, ten, eleven and twelve of this act shall be deemed
to have taken effect on the same date and apply in the same manner  that
part E of chapter 25 of the laws of 2009 took effect.

                                 PART P

  Section  1.  Paragraph 3 of subdivision (b) of section 1101 of the tax
law, as amended by section 21 of part Y of chapter 63  of  the  laws  of
2000, is amended to read as follows:
  (3)  Receipt.  The  amount  of  the sale price of any property and the
charge for any service taxable under this article, including gas and gas
service and electricity and electric service of whatever nature,  valued
in  money,  whether received in money or otherwise, including any amount
for which credit is allowed by the vendor to the purchaser, without  any
deduction for expenses or early payment discounts and also including any
charges  by  the  vendor to the purchaser for shipping or delivery, and,
with respect to  gas  and  gas  service  and  electricity  and  electric
service, any charges [by the vendor] for transportation, transmission or
distribution,  regardless  of whether such charges are separately stated
in the written contract, if  any,  or  on  the  bill  rendered  to  such
purchaser  and regardless of whether such shipping or delivery or trans-
portation, transmission, or  distribution  is  provided  by  [such]  THE
vendor  or a third party, but excluding any credit for tangible personal
property accepted in part payment and intended for resale.  For  special
rules  governing  computation  of  receipts,  see section eleven hundred
eleven.
  S 2. Section 1105-c of the tax law is REPEALED.
  S 3. This act shall take effect June 1, 2010, and shall apply to sales
made, services rendered and  uses  occurring  on  or  after  such  date,
although made, rendered or occurring under a prior contract.

                                 PART Q

  Section  1. Subdivision 1 of section 470 of the tax law, as amended by
section 1 of part MM-1 of chapter 57 of the laws of 2008, is amended  to
read as follows:
  1.  "Cigarette."  (a)  Any  roll for smoking made wholly or in part of
tobacco or of any other substance wrapped  in  paper  or  in  any  other
substance  not  containing  tobacco,  and  (b) any roll for smoking made
wholly or in part of tobacco wrapped in any substance containing tobacco
that, because of its appearance, the type of tobacco used in the filler,

A. 9710--B                         38

or its packaging and labeling, is likely to be offered to, or  purchased
by, consumers as a cigarette described in paragraph (a) of this subdivi-
sion.  [However,  a  roll  will  not be considered to be a cigarette for
purposes  of paragraph (b) of this subdivision if it is not treated as a
cigarette for federal excise tax purposes under the  applicable  federal
statute in effect on April first, two thousand eight.]
  S  2.  Subdivision  2  of  section  470  of the tax law, as amended by
section 1 of part MM-1 of chapter 57 of the laws of 2008, is amended  to
read as follows:
  2.  "Tobacco products." Any cigar, INCLUDING A LITTLE CIGAR, or tobac-
co, other than cigarettes, intended for consumption by smoking, chewing,
or as snuff.
  S 3. Section 470 of the tax law is amended by adding a new subdivision
2-b to read as follows:
  2-B. "LITTLE CIGAR." ANY ROLL FOR SMOKING MADE WHOLLY OR  IN  PART  OF
TOBACCO  IF SUCH PRODUCT IS WRAPPED IN ANY SUBSTANCE CONTAINING TOBACCO,
OTHER THAN NATURAL LEAF TOBACCO WRAPPER,  AND  WEIGHING  NOT  MORE  THAN
THREE  POUNDS  PER  THOUSAND,  PROVIDED THAT IF A PRODUCT ALSO MEETS THE
DEFINITION OF "CIGARETTE" UNDER THIS ARTICLE, IT SHALL BE TREATED  AS  A
CIGARETTE AND NOT AS A LITTLE CIGAR.
  S 4. Subdivision 19 of section 470 of the tax law, as added by section
1  of part MM-1 of chapter 57 of the laws of 2008, is amended to read as
follows:
  19. "Cigar." Any roll of tobacco wrapped in leaf  tobacco  or  in  any
substance  containing  tobacco (other than any roll of tobacco that is a
cigarette as defined in subdivision one of this section).   [However,  a
roll  will not be considered to be a cigar for purposes of this subdivi-
sion if it is not treated as a cigar for  federal  excise  tax  purposes
under the applicable federal statute in effect on April first, two thou-
sand eight.] "CIGAR" SHALL INCLUDE, EXCEPT WHERE EXPRESSLY EXCLUDED, ANY
LITTLE CIGAR.
  S  5.  Paragraph (a) of subdivision 1 of section 471-b of the tax law,
as amended by section 1 of part I-1 of chapter 57 of the laws  of  2009,
is amended to read as follows:
  (a)  Such  tax  on tobacco products other than snuff AND LITTLE CIGARS
shall be at the rate of forty-six percent of the wholesale price, and is
intended to be imposed only once upon the sale of any  tobacco  products
other than snuff AND LITTLE CIGARS.
  S  6.  Subdivision  1  of  section  471-b of the tax law is amended by
adding a new paragraph (c) to read as follows:
  (C) SUCH TAX ON LITTLE CIGARS SHALL BE AT THE  SAME  RATE  IMPOSED  ON
CIGARETTES  UNDER THIS ARTICLE, AS THIS ARTICLE MAY BE AMENDED FROM TIME
TO TIME, AND IS INTENDED TO BE IMPOSED ONLY ONCE  UPON THE SALE  OF  ANY
LITTLE CIGARS.
  S 7. Paragraph (i) of subdivision (a) of section 471-c of the tax law,
as  amended  by section 2 of part I-1 of chapter 57 of the laws of 2009,
is amended to read as follows:
  (i) Such tax on tobacco products other than snuff  AND  LITTLE  CIGARS
shall be at the rate of forty-six percent of the wholesale price.
  S 8. This act shall take effect July 1, 2010.

                                 PART R

  Section 1. Subdivision (n) of section 1115 of the tax law is REPEALED.
  S 2. This act shall take effect June 1, 2010.

A. 9710--B                         39

                                 PART S

  Section  1.  Subparagraph  3  of  paragraph  (i) of subdivision (d) of
section 1105 of the tax law, as amended by section 1 of part DD of chap-
ter 407 of the laws of 1999, is amended to read as follows:
  (3) in those instances where  the  sale  is  made  through  a  vending
machine that is activated by use of coin, currency, credit card or debit
card  [(except  the sale of drinks in a heated state made through such a
vending machine)] or is for consumption off the premises of the  vendor,
except  where food (other than sandwiches) or drink or both are (A) sold
in an unheated state and, (B) are of a type commonly sold  for  consump-
tion off the premises and in the same form and condition, quantities and
packaging,  in  establishments  which  are  food stores other than those
principally engaged in selling foods prepared and ready to be eaten.
  S 2. Paragraph 1 of subdivision (a) of section 1115 of the tax law, as
amended by section 1 of part O of chapter 63 of the  laws  of  2000,  is
amended to read as follows:
  (1)  Food,  food products, beverages, dietary foods and health supple-
ments, sold for human  consumption  but  not  including  (i)  candy  and
confectionery, (ii) fruit drinks which contain less than seventy percent
of  natural  fruit juice, (iii) soft drinks, sodas and beverages such as
are ordinarily dispensed at soda fountains or  in  connection  therewith
(other than coffee, tea and cocoa) and (iv) beer, wine or other alcohol-
ic  beverages,  all  of  which  shall be subject to the retail sales and
compensating use taxes, whether or not the item is sold in liquid  form.
[The  food  and drink excluded from the exemption provided by this para-
graph under subparagraphs (i), (ii) and (iii) of this paragraph shall be
exempt under this paragraph when sold for  seventy-five  cents  or  less
through  any  vending  machine  activated  by the use of coin, currency,
credit card or debit card. With the exception of the provision  in  this
paragraph  providing for an exemption for certain food or drink sold for
seventy-five cents or less through vending  machines,  nothing]  NOTHING
herein  shall  be  construed  as  exempting  food  or drink from the tax
imposed under subdivision (d) of section eleven hundred five.
  S 3. This act shall take effect immediately.

                                 PART T

  Section 1. Paragraph 1 of subsection (c) of section  615  of  the  tax
law,  as  amended by chapter 497 of the laws of 1997, is amended to read
as follows:
  (1) STATE AND LOCAL GENERAL SALES TAXES AS DEFINED IN  SUBSECTION  (B)
OF SECTION ONE HUNDRED SIXTY-FOUR OF THE INTERNAL REVENUE CODE OR income
taxes  imposed  by  this  state or any other taxing jurisdiction, except
city earnings taxes on nonresidents that are imposed upon  and  paid  by
taxpayers for taxable years beginning after December thirty-first, nine-
teen hundred seventy and before January first, two thousand, pursuant to
the  authority  of FORMER section twenty-five-m of the general city law,
to the extent that the amount of such tax exceeds the tax computed as if
the rates were one-fourth of one percent of wages  subject  to  tax  and
three-eighths  of  one  percent  of  net  earnings  from self-employment
subject to tax;
  S 2. Paragraph 1 of subdivision (c) of section 11-1715 of the adminis-
trative code of the city of New York, as amended by chapter 497  of  the
laws of 1997, is amended to read as follows:

A. 9710--B                         40

  (1)  STATE  AND LOCAL GENERAL SALES TAXES AS DEFINED IN SUBSECTION (B)
OF SECTION ONE HUNDRED SIXTY-FOUR OF THE INTERNAL REVENUE CODE OR income
taxes imposed by this city or any other taxing jurisdiction, except city
earnings taxes on nonresidents that are imposed upon and paid by taxpay-
ers  for  taxable  years beginning after December thirty-first, nineteen
hundred seventy and before January first, two thousand, pursuant to  the
authority  of  FORMER  section twenty-five-m of the general city law, to
the extent that the amount of such tax exceeds the tax  computed  as  if
the  rates  were  one-fourth  of one percent of wages subject to tax and
three-eighths of  one  percent  of  net  earnings  from  self-employment
subject to tax;
  S 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2011.

                                 PART U

  Section  1.  Paragraphs  2 and 3 of subdivision (c) of section 1101 of
the tax law, as added by chapter 93 of the laws of 1965, are amended  to
read as follows:
  (2)  Occupancy.  The  use  or  possession,  or the right to the use or
possession, of any room in a hotel.  "RIGHT TO THE  USE  OR  POSSESSION"
INCLUDES THE RIGHTS OF AN OCCUPANCY PROVIDER AS DESCRIBED IN SUBDIVISION
(A) OF SECTION ELEVEN HUNDRED FIVE-D OF THIS ARTICLE.
  (3)  Occupant.  A person who, for a consideration, uses, possesses, or
has the right to use or possess, any room in a hotel  under  any  lease,
concession,  permit, right of access, license to use or other agreement,
or otherwise.  "RIGHT TO USE OR POSSESS" INCLUDES THE RIGHTS OF AN OCCU-
PANCY PROVIDER AS DESCRIBED IN SUBDIVISION (A) OF SECTION ELEVEN HUNDRED
FIVE-D OF THIS ARTICLE.
  S 2. The tax law is amended by adding a new section 1105-D to read  as
follows:
  S 1105-D. SPECIAL RULES REGARDING SALES TAX ON RENT FOR OCCUPANCY OF A
ROOM  IN A HOTEL. NOTWITHSTANDING ANY PROVISION OF THIS ARTICLE OR OTHER
LAW TO THE CONTRARY:
  (A) "OCCUPANCY PROVIDER" MEANS A PERSON HAVING AN AGREEMENT  AUTHORIZ-
ING  SUCH  PERSON  TO  RESERVE, ARRANGE FOR, OR CONVEY THE RIGHT TO, FOR
CONSIDERATION, AN OCCUPANCY FOR ANOTHER PERSON IN  AN  OPERATOR'S  HOTEL
WHERE  THE  PERSON  HAVING SUCH AGREEMENT HAS THE RIGHT TO DETERMINE THE
AMOUNT, HOWEVER DENOMINATED, OF RENT FOR  THE  OCCUPANCY  OF  THE  OTHER
PERSON.  AN  OCCUPANCY  PROVIDER  SHALL NOT BE A PERMANENT RESIDENT WITH
RESPECT TO SUCH OCCUPANCY FOR PURPOSES OF THE TAXES IMPOSED BY OR PURSU-
ANT TO THIS ARTICLE AND SUBPART B OF PART I OF  ARTICLE  TWENTY-NINE  OF
THIS CHAPTER.
  (B) THE SALES TAX ON RENT IMPOSED BY SUBDIVISION (E) OF SECTION ELEVEN
HUNDRED  FIVE  OF  THIS  ARTICLE SHALL BE COMPUTED ON ONE HUNDRED TWENTY
PERCENT OF THE RENT PAID, NO MATTER HOW DENOMINATED,  BY  THE  OCCUPANCY
PROVIDER TO THE OPERATOR OF A HOTEL OR ANOTHER OCCUPANCY PROVIDER.
  (C)(1)  AN  OCCUPANCY  PROVIDER  SHALL  BE  ALLOWED A REFUND OR CREDIT
AGAINST THE AMOUNT OF TAX COLLECTED AND REQUIRED TO BE REMITTED PURSUANT
TO SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS ARTICLE IN THE AMOUNT  OF
THE  TAX IT PAID TO AN OPERATOR OF A HOTEL OR ANOTHER OCCUPANCY PROVIDER
UNDER SECTION ELEVEN HUNDRED FOUR OF THIS ARTICLE, WHERE APPLICABLE, AND
SUBDIVISION (B) OF THIS SECTION. PROVIDED, HOWEVER, THAT,  IN  ORDER  TO
RECEIVE  A  REFUND  OR  CREDIT  UNDER THIS PARAGRAPH WITH RESPECT TO ANY
SALES TAX QUARTERLY PERIOD, AS DESCRIBED IN SUBDIVISION (B)  OF  SECTION
ELEVEN  HUNDRED THIRTY-SIX OF THIS ARTICLE, THE OCCUPANCY PROVIDER MUST,

A. 9710--B                         41

WITH RESPECT TO SUCH QUARTER, (I) BE REGISTERED FOR SALES  TAX  PURPOSES
PURSUANT  TO SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS ARTICLE AND (II)
COLLECT THE TAXES IMPOSED BY SECTION ELEVEN HUNDRED FOUR OF  THIS  ARTI-
CLE,  WHERE  APPLICABLE,  AND  SUBDIVISION (E) OF SECTION ELEVEN HUNDRED
FIVE OF THIS ARTICLE, WHETHER SUBJECT TO SUBDIVISION (B) OF THIS SECTION
OR NOT, AS THE CASE MAY BE, ON THE RENT FOR OCCUPANCY IT RECEIVES.
  (2) AN OCCUPANCY PROVIDER NOT COVERED BY PARAGRAPH ONE OF THIS  SUBDI-
VISION SHALL BE ALLOWED A REFUND OF SALES TAX TO THE EXTENT THAT THE TAX
IT PAID UNDER SUBDIVISION (B) OF THIS SECTION IN RESPECT TO AN OCCUPANCY
OF A ROOM EXCEEDS THE SALES TAX DUE FROM THE OCCUPANT PURSUANT TO SUBDI-
VISION  (E)  OF  SECTION  ELEVEN  HUNDRED  FIVE OF THIS ARTICLE, WHETHER
SUBJECT TO SUBDIVISION (B) OF THIS SECTION OR NOT, AS THE CASE  MAY  BE,
ON  THE  RENT  THE  OCCUPANCY PROVIDER CHARGED FOR THE OCCUPANCY OF SUCH
ROOM.
  (3) ANY REFUND OR CREDIT AVAILABLE UNDER  THIS  SUBDIVISION  SHALL  BE
SUBJECT  TO  THE COMMISSIONER'S RIGHT OF OFFSET AGAINST ANY TAX OR OTHER
IMPOSITION  DUE  TO  AND  ADMINISTERED  BY  THE  COMMISSIONER  AND   THE
PROVISIONS  OF SECTIONS ELEVEN HUNDRED NINETEEN AND ELEVEN HUNDRED THIR-
TY-NINE OF THIS ARTICLE AS IF SUCH PROVISIONS WERE INCORPORATED IN  FULL
INTO  THIS SECTION AND HAD EXPRESSLY REFERRED TO THE REFUNDS AND CREDITS
AUTHORIZED BY THIS SUBDIVISION, INCLUDING THE PERIODS OF LIMITATIONS  ON
PAYMENTS AND APPLICATIONS TO THE COMMISSIONER, EXCEPT TO THE EXTENT THAT
ANY  SUCH  PROVISION  IS  NOT RELEVANT TO, OR IS INCONSISTENT WITH, THIS
SECTION; PROVIDED THAT NO INTEREST SHALL BE ALLOWED  OR  PAID  UPON  ANY
REFUND MADE OR CREDIT ALLOWED PURSUANT TO THIS SUBDIVISION.
  (D)  FOR  PURPOSES  OF PARTS III AND IV OF THIS ARTICLE, SUBPARTS B OF
PARTS I AND III OF ARTICLE TWENTY-NINE OF THIS CHAPTER, AND PART III  OF
ARTICLE  THIRTY-SEVEN  OF  THIS  CHAPTER, AN OCCUPANCY PROVIDER SHALL BE
DEEMED TO BE AN OPERATOR, SHALL BE CONSIDERED TO BE  OPERATING  A  HOTEL
AND  SHALL  COMPLY WITH ALL THE REQUIREMENTS OF THIS ARTICLE AND ARTICLE
TWENTY-NINE OF THIS CHAPTER WITH RESPECT  TO  OPERATORS,  INCLUDING  THE
DUTY TO COLLECT AND REMIT THE TAX ON ANY RENT CHARGED ANOTHER PERSON.
  (E)  WHEN  OCCUPANCY  IS  PROVIDED  IN CONJUNCTION WITH OTHER GOODS OR
SERVICES, FOR A SINGLE CONSIDERATION, THE ENTIRE CONSIDERATION SHALL  BE
TREATED  AS  RENT SUBJECT TO SUBDIVISION (B) OF THIS SECTION, WHETHER OR
NOT SUCH OTHER GOODS AND SERVICES ARE SUBJECT TO TAX; PROVIDED, HOWEVER,
THAT WHERE THE AMOUNT OF THE RENT FOR THE OCCUPANCY IS SEPARATELY STATED
ON ANY SALES SLIP, INVOICE, RECEIPT OR OTHER STATEMENT OR MEMORANDUM  OF
THE  PRICE GIVEN THE OCCUPANT AND IS REASONABLE IN RELATION TO THE VALUE
OF THE OTHER GOODS AND SERVICES BEING PROVIDED, ONLY THE AMOUNT OF  SUCH
RENT WILL BE SUBJECT TO SUBDIVISION (B) OF THIS SECTION.
  S  3.  Subdivisions  3  and 4 of section 11-2501 of the administrative
code of the city of New York are amended to read as follows:
  3. "Occupant." A person who, for a consideration, uses, possesses,  or
has  the right to use or possess, any room or rooms in a hotel under any
lease, concession, permit, right of access,  license  to  use  or  other
agreement,  or otherwise.  "RIGHT TO USE OR POSSESS" INCLUDES THE RIGHTS
OF AN OCCUPANCY PROVIDER AS DESCRIBED IN PARAGRAPH  ONE  OF  SUBDIVISION
A-ONE OF SECTION 11-2502 OF THIS CHAPTER.
  4.  "Occupancy."  The  use  or  possession, or the right to the use or
possession of any room or rooms in a hotel, or the right to the  use  or
possession  of  the  furnishings  or  to the services and accommodations
accompanying the use and possession of the room or rooms.  "RIGHT TO THE
USE OR POSSESSION" INCLUDES THE  RIGHTS  OF  AN  OCCUPANCY  PROVIDER  AS
DESCRIBED  IN  PARAGRAPH  ONE OF SUBDIVISION A-ONE OF SECTION 11-2502 OF
THIS CHAPTER.

A. 9710--B                         42

  S 4. Section 11-2502 of the administrative code of  the  city  of  New
York is amended by adding a new subdivision a-1 to read as follows:
  A-1.    NOTWITHSTANDING  ANY PROVISION OF THIS CHAPTER OR OTHER LAW TO
THE CONTRARY: (1) "OCCUPANCY PROVIDER" MEANS A PERSON HAVING  AN  AGREE-
MENT  AUTHORIZING  SUCH  PERSON  TO  RESERVE, ARRANGE FOR, OR CONVEY THE
RIGHT TO, FOR CONSIDERATION, AN OCCUPANCY OF ANOTHER PERSON IN THE OPER-
ATOR'S HOTEL WHERE THE PERSON HAVING SUCH AGREEMENT  HAS  THE  RIGHT  TO
DETERMINE  THE AMOUNT, HOWEVER DENOMINATED, OF RENT FOR THE OCCUPANCY OF
THE OTHER PERSON. AN OCCUPANCY PROVIDER SHALL NOT BE A  PERMANENT  RESI-
DENT WITH RESPECT TO SUCH OCCUPANCY FOR PURPOSES OF THIS CHAPTER.
  (2)  THE  TAX  ON  RENT IMPOSED BY PARAGRAPH THREE OF SUBDIVISION A OF
THIS SECTION SHALL BE COMPUTED ON ONE HUNDRED TWENTY PERCENT OF THE RENT
PAID, NO MATTER HOW DENOMINATED, BY THE OCCUPANCY PROVIDER TO THE OPERA-
TOR OF A HOTEL OR ANOTHER OCCUPANCY PROVIDER.
  (3)(A) AN OCCUPANCY PROVIDER SHALL  BE  ALLOWED  A  REFUND  OR  CREDIT
AGAINST  THE  TAXES  COLLECTED  AND  REQUIRED TO BE REMITTED PURSUANT TO
SECTION 11-2505 OF THIS CHAPTER IN THE AMOUNT OF THE TAX IT PAID TO  THE
OPERATOR  OF THE HOTEL OR ANOTHER OCCUPANCY PROVIDER UNDER PARAGRAPH TWO
OF SUBDIVISION A OF THIS SECTION AND PARAGRAPH TWO OF THIS  SUBDIVISION.
PROVIDED,  HOWEVER,  THAT  IN  ORDER TO RECEIVE A REFUND OR CREDIT UNDER
THIS SUBPARAGRAPH WITH RESPECT TO ANY SALES  TAX  QUARTERLY  PERIOD,  AS
DESCRIBED IN SUBDIVISION A OF SECTION 11-2504 OF THIS CHAPTER, THE OCCU-
PANCY PROVIDER MUST, WITH RESPECT TO SUCH QUARTER, (I) BE REGISTERED FOR
SALES TAX PURPOSES PURSUANT TO SECTION 11-2514 OF THIS CHAPTER; AND (II)
COLLECT  THE  TAXES IMPOSED BY PARAGRAPHS TWO AND THREE OF SUBDIVISION A
OF THIS SECTION, WHETHER SUBJECT TO PARAGRAPH TWO OF THIS SUBDIVISION OR
NOT, AS THE CASE MAY BE, ON THE RENT FOR OCCUPANCY IT RECEIVES.
  (B) AN OCCUPANCY PROVIDER NOT COVERED  BY  SUBPARAGRAPH  (A)  OF  THIS
PARAGRAPH  SHALL  BE ALLOWED A REFUND TO THE EXTENT THAT THE TAX IT PAID
UNDER PARAGRAPH TWO OF THIS SUBDIVISION FOR  THE  OCCUPANCY  OF  A  ROOM
EXCEEDS THE TAX ON OCCUPANCY DUE FROM THE OCCUPANT UNDER PARAGRAPH THREE
OF  SUBDIVISION  A  OF THIS SECTION, WHETHER SUBJECT TO PARAGRAPH TWO OF
THIS SUBDIVISION OR NOT, AS THE CASE MAY BE, ON THE RENT SUCH  OCCUPANCY
PROVIDER CHARGED FOR THE OCCUPANCY OF SUCH ROOM.
  (C)  ANY  REFUND  OR  CREDIT  AVAILABLE  UNDER THIS PARAGRAPH SHALL BE
SUBJECT TO THE COMMISSIONER OF FINANCE'S RIGHT OF OFFSET AGAINST ANY TAX
OR OTHER IMPOSITION DUE TO AND ADMINISTERED BY SUCH COMMISSIONER AND THE
PROVISIONS OF SECTION 11-2507 OF THIS CHAPTER AS IF SUCH PROVISIONS WERE
INCORPORATED IN FULL INTO THIS SUBDIVISION AND HAD EXPRESSLY REFERRED TO
THE REFUNDS AND CREDITS AUTHORIZED  BY  THIS  PARAGRAPH,  INCLUDING  THE
PERIODS  OF LIMITATIONS ON PAYMENTS AND APPLICATIONS TO THE COMMISSIONER
OF FINANCE, EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS NOT RELEVANT
TO, OR IS INCONSISTENT WITH, THIS SUBDIVISION; PROVIDED, THAT NO  INTER-
EST  SHALL  BE  ALLOWED  OR  PAID UPON ANY REFUND MADE OR CREDIT ALLOWED
PURSUANT TO THIS PARAGRAPH.
  (4) "OPERATOR" AS USED IN SUBDIVISION SEVEN OF SECTION 11-2501 OF THIS
CHAPTER, OTHER SUBDIVISIONS OF THIS SECTION AND THE  FOLLOWING  SECTIONS
OF THIS CHAPTER INCLUDES AN OCCUPANCY PROVIDER AND THE OCCUPANCY PROVID-
ER SHALL BE CONSIDERED TO BE OPERATING A HOTEL AND SHALL COMPLY WITH ALL
THE  REQUIREMENTS  OF  THIS CHAPTER WITH RESPECT TO OPERATORS, INCLUDING
THE DUTY TO COLLECT AND REMIT  THE  TAX  ON  ANY  RENT  CHARGED  ANOTHER
PERSON.
  (5)  WHEN  OCCUPANCY  IS  PROVIDED  IN CONJUNCTION WITH OTHER GOODS OR
SERVICES FOR A SINGLE CONSIDERATION, THE ENTIRE CONSIDERATION  SHALL  BE
TREATED AS RENT SUBJECT TO PARAGRAPH TWO OF THIS SUBDIVISION, WHETHER OR
NOT SUCH OTHER GOODS AND SERVICES ARE SUBJECT TO TAX; PROVIDED, HOWEVER,

A. 9710--B                         43

THAT WHERE THE AMOUNT OF THE RENT FOR THE OCCUPANCY IS SEPARATELY STATED
ON  ANY SALES SLIP, INVOICE, RECEIPT OR OTHER STATEMENT OR MEMORANDUM OF
THE PRICE GIVEN THE OCCUPANT AND IS REASONABLE IN RELATION TO THE  VALUE
OF  THE OTHER GOODS AND SERVICES BEING PROVIDED, ONLY THE AMOUNT OF SUCH
RENT WILL BE SUBJECT TO PARAGRAPH TWO OF THIS SUBDIVISION.
  S 5. The tax law is amended by adding a new section 1244  to  read  as
follows:
  S 1244. SPECIAL RULES REGARDING HOTEL OR MOTEL TAXES ON RENT FOR OCCU-
PANCY OF A ROOM. NOTWITHSTANDING ANY PROVISIONS OF THIS ARTICLE OR OTHER
LAW  TO  THE  CONTRARY,  A MUNICIPALITY WHICH IMPOSES A TAX UPON PERSONS
OCCUPYING HOTEL OR MOTEL ROOMS IN  SUCH  MUNICIPALITY  PURSUANT  TO  THE
AUTHORITY  OF  SUBPART  A OF PART I OF THIS ARTICLE OR AN UNCONSOLIDATED
LAW SHALL BE AUTHORIZED AND EMPOWERED TO ADOPT  AND  AMEND  LOCAL  LAWS,
ORDINANCES  OR  RESOLUTIONS  TO  MAKE  THE  PROVISIONS OF SECTION ELEVEN
HUNDRED FIVE-D OF THIS CHAPTER AND RELATED DEFINITIONS IN PARAGRAPHS TWO
AND THREE OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS CHAP-
TER APPLICABLE TO SUCH TAX IN SUCH MUNICIPALITY, AS IF  SUCH  PROVISIONS
HAD  BEEN  INCORPORATED  INTO  THE  LAW AUTHORIZING SUCH MUNICIPALITY TO
IMPOSE SUCH TAX AND HAD  EXPRESSLY  REFERRED  TO  SUCH  TAX,  WITH  SUCH
MODIFICATIONS  AS ARE NECESSARY TO ADAPT THE LANGUAGE OF SUCH PROVISIONS
TO SUCH TAX.
  S 6. This act shall take effect on the  first  day  of  the  quarterly
period,  as described in subdivision (b) of section 1136 of the tax law,
next commencing at least 30 days after the  date  this  act  shall  have
become  a law, and shall apply in accordance with the applicable transi-
tional provisions in sections 1106 and 1217 of the tax law.

                                 PART V

  Section 1. The section heading, the opening paragraph and paragraph  a
of  subdivision  1  of section 27-0923 of the environmental conservation
law, the section heading and the opening paragraph of subdivision  1  as
added by chapter 38 of the laws of 1985 and paragraph a of subdivision 1
as  amended  by  chapter  423 of the laws of 1990, are amended and a new
paragraph g is added to read as follows:
  Special assessments on hazardous wastes [generated].
  On and after [June] JULY first,  [nineteen  hundred  eighty-five]  TWO
THOUSAND  TEN,  there is hereby imposed upon every person who is engaged
within the state in the generation  of  hazardous  waste  identified  or
listed  pursuant  to this title a special assessment to be determined as
follows:
  a. [Twenty-seven] SEVEN dollars per ton of hazardous  waste  generated
which is disposed of in a landfill on the site where the waste is gener-
ated  or  which  is  designated  for removal or removed from the site of
generation for disposal in a landfill or which is designated for removal
or removed from the site of generation for storage prior to disposal  in
a landfill;
  G.  FOR THE PURPOSE OF THIS SUBDIVISION, GENERATION OF HAZARDOUS WASTE
SHALL NOT INCLUDE RETRIEVAL OR CREATION OF HAZARDOUS WASTE WHICH MUST BE
DISPOSED OF UNDER AN ORDER OF OR AGREEMENT WITH THE DEPARTMENT  PURSUANT
TO  TITLE THIRTEEN OR TITLE FOURTEEN OF THIS ARTICLE OR UNDER A CONTRACT
WITH THE DEPARTMENT PURSUANT TO TITLE FIVE OF ARTICLE FIFTY-SIX OF  THIS
CHAPTER.
  S  2.  Subdivision 2 of section 27-0923 of the environmental conserva-
tion law, as amended by chapter 423 of the laws of 1990, is  amended  to
read as follows:

A. 9710--B                         44

  2.  On  or after [June] JULY first, [nineteen hundred eighty-five] TWO
THOUSAND TEN, there is hereby imposed upon persons  holding  permits  or
required  to  hold  permits  for  the  storage, treatment or disposal of
hazardous waste pursuant to section 27-0913 of this  title  a  hazardous
waste disposal special assessment [to be determined as follows:
  a. Twenty-seven] OF TWENTY dollars per ton of hazardous waste which is
received  for disposal in a landfill or for storage prior to disposal in
a landfill[;
  b. Nine dollars per ton of  hazardous  waste  which  is  received  for
incineration or for storage prior to incineration;
  c.  Sixteen  dollars  per ton of hazardous waste which is received for
treatment or disposal, exclusive of disposal in a landfill or by  incin-
eration, or for storage prior to such treatment or disposal;
  d.  No special assessment shall be imposed under this subdivision upon
receipt for treatment or disposal, or storage prior thereto of hazardous
waste where such waste was generated by persons subject to  the  special
assessment under subdivision one of this section].
  S  3. Section 27-0923 of the environmental conservation law is amended
by adding a new subdivision 2-a to read as follows:
  2-A. TEN PERCENT OF ANY SPECIAL ASSESSMENT PAID FOR LANDFILL  DISPOSAL
SHALL  GO  TO THE COUNTY HEALTH DEPARTMENT OF THE COUNTY WHERE THE LAND-
FILL THAT IS ACCEPTING HAZARDOUS WASTE IS LOCATED.  SUCH FUNDS SHALL  BE
PAID  TO  THE COUNTY ON A QUARTERLY BASIS ON OR BEFORE THE TWENTIETH DAY
OF THE MONTH AFTER THE  END  OF  EACH  CALENDAR  QUARTER.    ALL  MONEYS
COLLECTED  OR  RECEIVED  BY THE COUNTY PURSUANT TO THIS SECTION SHALL BE
CREDITED TO THE COUNTY HEALTH DEPARTMENTS.   COUNTY  HEALTH  DEPARTMENTS
SHALL USE SUCH MONIES FOR ASSESSMENT OF ANY POTENTIAL HEALTH OR ENVIRON-
MENTAL  IMPACT  FROM  THE LANDFILL DISPOSAL FACILITY, INCLUDING SOIL AND
WATER TESTING. SUCH MONIES SHALL SUPPLEMENT  AND  IN  NO  CASE  SUPPLANT
EXISTING FUNDING.
  S  4. Paragraphs c, d and e of subdivision 3 of section 27-0923 of the
environmental conservation law, paragraph c as amended by section  5  of
part I of chapter 577 of the laws of 2004, paragraph d as added by chap-
ter  512  of the laws of 1986 and paragraph e as added by chapter 423 of
the laws of 1990, are amended to read as follows:
  c. [For the purpose of this section,  generation  of  hazardous  waste
shall not include retrieval or creation of hazardous waste which must be
disposed  of under an order of or agreement with the department pursuant
to title thirteen or title fourteen of this article or under a  contract
with  the department pursuant to title five of article fifty-six of this
chapter.
  d.] No portion of the special assessments collected pursuant  to  this
section  shall  be  used for any purpose if such use, under federal law,
would preclude the collection of such special assessment.
  [e.] D. Notwithstanding any provision of this section to the contrary,
the actual method utilized to dispose of or treat  any  hazardous  waste
shall  govern the determination of the rate per ton applicable under the
special assessments imposed by this  section,  even  if  such  hazardous
waste  was  designated  for  removal,  removed,  stored  or received for
disposal or treatment by a method different  than  the  method  actually
utilized.  Where any such special assessment with respect to any hazard-
ous waste is reported and paid on the basis of a rate per ton  which  is
greater  than  the rate per ton applicable to the actual method utilized
to dispose of or treat such hazardous waste, the difference between  the
amount  reported  and  paid  and  the  amount due using the rate per ton
applicable to the actual method utilized shall be considered an overpay-

A. 9710--B                         45

ment of such  special  assessment.  The  commissioner  of  taxation  and
finance  shall  credit or refund such overpayment in the manner provided
and subject to the conditions contained in article twenty-seven  of  the
tax law, as incorporated by subdivision six of this section.
  S  5.  Paragraph b of subdivision 4 of section 27-0923 of the environ-
mental conservation law, as added by chapter 38 of the laws of 1985,  is
amended to read as follows:
  b.  All  [moneys]  MONIES  collected  or received by the department of
taxation and finance pursuant to this section shall be  deposited  daily
to  the  credit  of the comptroller with such responsible banks, banking
houses or trust companies as may be designated by the comptroller.  Such
deposits  shall  be kept separate and apart from all other moneys in the
possession of the comptroller. The comptroller  shall  require  adequate
security  from  all  such  depositories. Of the revenues collected under
this section, the comptroller shall retain in his hands such amounts  as
the  commissioner  of taxation and finance may determine to be necessary
for refunds under this section and the comptroller shall pay any refunds
to which those liable for special assessments shall  be  entitled  under
the  provisions  of  this  section. The comptroller, after reserving the
amount to pay such refunds, shall, on or before the tenth  day  of  each
month,  pay  all  special  assessments, interest and penalties collected
under this section and remaining to his credit in  such  banks,  banking
houses  or  trust  companies at the close of business on the last day of
the preceding month into  the  hazardous  waste  remedial  fund  created
pursuant  to  section  ninety-seven-b  of  the state finance law. Within
thirty days after each quarterly reporting date, the  comptroller  shall
certify  the  amount of special assessments under this section deposited
in the hazardous waste remedial fund during the  preceding  quarter  and
the  cumulative amount collected since the start of the current calendar
year, and shall submit such certification to the governor and the chair-
man of the senate finance committee and the  chairman  of  the  assembly
ways and means committee.
  S 6. This act shall take effect July 1, 2010.

                                 PART W

  Section  1. The general municipal law is amended by adding a new arti-
cle 18-D to read as follows:
                              ARTICLE 18-D
                         EMPIRE INNOVATION ZONES
SECTION 971. SHORT TITLE.
        971-A. DEFINITIONS.
        972. JOB CREATION AND INVESTMENT REQUIREMENTS.
        972-A. RESPONSIBILITIES OF THE COMMISSIONER.
        973. LOCAL ADMINISTRATION.
  S 971. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY  BE  CITED  AS
THE "NEW YORK STATE EMPIRE INNOVATION ZONES ACT".
  S 971-A. 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) "COMMISSIONER" SHALL MEAN THE COMMISSIONER  OF  ECONOMIC  DEVELOP-
MENT.
  (B)"INNOVATION ZONE" SHALL MEAN AN AREA WITHIN THE STATE THAT HAS BEEN
DESIGNATED UNDER PARAGRAPH (I) OF SUBDIVISION (A) AND SUBDIVISION (D) OF
SECTION  NINE  HUNDRED  FIFTY-EIGHT  OF THIS CHAPTER AND SHALL BE WHOLLY
CONTAINED WITHIN UP TO THREE DISTINCT AND SEPARATE CONTIGUOUS AREAS.

A. 9710--B                         46

  (C) "LOCAL EMPIRE INNOVATION ZONE ADMINISTRATIVE BOARD" SHALL MEAN THE
SAME BOARD AS AUTHORIZED AND DEFINED PURSUANT TO  SECTION  NINE  HUNDRED
FIFTY-SEVEN OF THIS CHAPTER.
  (D)  "WOMEN-OWNED  BUSINESS ENTERPRISE" SHALL HAVE THE SAME MEANING AS
PROVIDED IN SECTION THREE HUNDRED TEN OF THE EXECUTIVE LAW.
  (E) "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 LEGISLATIVE 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 SUPERVISOR OF  A  TOWN,
EXCEPT WHERE A TOWN HAS A MANAGER, IT SHALL MEAN SUCH MANAGER.
  (F)  "ZONE  ADMINISTRATIVE  ENTITY" SHALL MEAN A COMMUNITY-BASED LOCAL
DEVELOPMENT CORPORATION OR ENTITY CONTRACTING WITH THE LOCAL EMPIRE ZONE
BOARD PURSUANT TO SECTION NINE HUNDRED SIXTY-THREE OF  THIS  CHAPTER  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.
  (G)  "STRATEGIC  INDUSTRY"  SHALL MEAN A BUSINESS OPERATING IN CERTAIN
HIGH GROWTH, HIGH TECHNOLOGY INDUSTRIES AND INDUSTRY  CLUSTERS,  INCLUD-
ING,  BUT  NOT  LIMITED  TO:  BIO-TECHNOLOGY/LIFE SCIENCES, INFORMATICS,
NANO-TECHNOLOGY, CLEAN TECHNOLOGY, GREEN TECHNOLOGY, ALTERNATIVE ENERGY,
SOFTWARE DEVELOPMENT AND INTERNET PUBLISHING.
  (H) "REGIONALLY SIGNIFICANT" SHALL MEAN A BUSINESS ENTITY ENGAGING  IN
ECONOMIC DEVELOPMENT IMPACTING MORE THAN ONE MUNICIPALITY THAT MEETS THE
FOLLOWING  CRITERIA:  A MANUFACTURER THAT CREATES FIFTY OR MORE JOBS; OR
AN AGRI-BUSINESS MAKING A CAPITAL 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.
  (I) "NET NEW JOBS" SHALL MEAN JOBS CREATED IN THIS STATE THAT ARE  NEW
TO  THE  STATE,  HAVE NOT BEEN TRANSFERRED FROM ANOTHER LOCATION IN THIS
STATE OR FROM A RELATED BUSINESS ENTITY IN THIS STATE, ARE  EITHER  FULL
TIME OR FULL TIME EQUIVALENT TO A FULL TIME JOB REQUIRING AT LEAST THIR-
TY-FIVE HOURS PER WEEK AND ARE FILLED FOR MORE THAN SIX MONTHS.
  S 972. JOB CREATION AND INVESTMENT REQUIREMENTS. (A) THE PROVISIONS OF
THIS ARTICLE SHALL BE CONSIDERED IN FULL FORCE AND EFFECT BEGINNING JULY
FIRST, TWO THOUSAND TEN UNTIL JUNE THIRTIETH, TWO THOUSAND SEVENTEEN AND
ONLY  APPLY TO BUSINESS ENTITIES CERTIFIED TO BE ELIGIBLE TO PARTICIPATE
IN THE EMPIRE INNOVATION ZONES PROGRAM PURSUANT TO  THIS  ARTICLE  AFTER
JULY  FIRST,  TWO THOUSAND TEN AND PRIOR TO JUNE THIRTIETH, TWO THOUSAND
SEVENTEEN.
  (B) NO BUSINESS ENTITY SHALL BE CERTIFIED  PURSUANT  TO  THIS  ARTICLE
UNLESS  SUCH  ENTITY  IS  INCLUDED IN A STRATEGIC INDUSTRY AS DEFINED IN
SECTION NINE HUNDRED SEVENTY-ONE-A OF THIS ARTICLE  AND  CREATES  A  NET
FIVE  NEW  JOBS  OR  IS CERTIFIED AS A REGIONALLY SIGNIFICANT ENTITY AND
MEETS ITS NET NEW JOB AND INVESTMENT REQUIREMENTS  WHERE  APPLICABLE  AS
PURSUANT TO SECTION NINE HUNDRED SEVENTY-ONE-A OF THIS ARTICLE.
  (C)  ELIGIBLE BUSINESS ENTITIES MAY APPLY TO THE COMMISSIONER UPON THE
RECOMMENDATION OF THE LOCAL ADMINISTRATION BOARD. THE COMMISSIONER SHALL
PROMULGATE REGULATIONS CONCERNING THE APPLICATION  PROCESS  PURSUANT  TO
SECTION NINE HUNDRED SEVENTY-TWO-A OF THIS ARTICLE.
  (D)  IN ORDER TO BE CERTIFIED BY THE COMMISSIONER, THE BUSINESS ENTITY
MUST MEET THE NET NEW JOB REQUIREMENTS WITHIN TWENTY-FOUR MONTHS OF  THE
DATE  OF  CERTIFICATION  FOLLOWING THE BUSINESS ENTITY'S APPLICATION FOR
ELIGIBILITY. A BUSINESS ENTITY THAT MEETS ITS NET  NEW  JOB  REQUIREMENT
WITHIN  THAT  TWENTY-FOUR  MONTH  PERIOD  MUST  SUBMIT PROOF OF THAT JOB
CREATION TO THE DEPARTMENT OF ECONOMIC  DEVELOPMENT  AND  PROOF  OF  ITS

A. 9710--B                         47

ACTUAL  EXPENDITURES  AND OTHER REQUIRED INFORMATION AS THE COMMISSIONER
MAY PRESCRIBE. TO RETAIN CERTIFICATION AND CONTINUE TO RECEIVE  BENEFITS
PURSUANT TO THIS ARTICLE, THE BUSINESS ENTITY MUST SUBMIT TO THE DEPART-
MENT OF ECONOMIC DEVELOPMENT PROOF OF RETAINED NET NEW JOBS AND PROOF OF
QUALIFIED  INVESTMENTS. NO CERTIFICATION APPROVAL SHALL TAKE PLACE UNTIL
THE ENTITY:
  (1) AGREES IN WRITING TO ALLOW THE DEPARTMENT OF TAXATION AND  FINANCE
TO  SHARE  ITS  TAX INFORMATION WITH THE DEPARTMENT OF ECONOMIC DEVELOP-
MENT. HOWEVER, ANY INFORMATION SHARED AS  A  RESULT  OF  THIS  AGREEMENT
SHALL  NOT  BE  AVAILABLE  FOR  DISCLOSURE OR INSPECTION UNDER THE STATE
FREEDOM OF INFORMATION LAW;
  (2) ALLOWS THE DEPARTMENT  OF  ECONOMIC  DEVELOPMENT  AND  ITS  AGENTS
ACCESS  TO  ANY  AND  ALL  BOOKS  AND RECORDS THE DEPARTMENT OF ECONOMIC
DEVELOPMENT MAY REQUIRE TO MONITOR COMPLIANCE;
  (3) SUBMITS THE PRIOR THREE YEARS OF FEDERAL AND NEW YORK STATE INCOME
OR FRANCHISE TAX RETURNS AND UNEMPLOYMENT INSURANCE QUARTERLY RETURNS TO
THE DEPARTMENT OF ECONOMIC DEVELOPMENT. IF THE BUSINESS ENTITY HAS  BEEN
SUBJECT  TO  TAX IN THIS STATE FOR LESS THAN THREE YEARS, IT MUST SUBMIT
RETURNS FOR ALL THE YEARS IT HAS BEEN SUBJECT TO TAX;
  (4) PROVIDES A PLAN TO THE COMMISSIONER OUTLINING THE CREATION OF  THE
REQUISITE  NET  NEW  JOBS,  INCLUDING DETAILS ON JOB TITLES AND EXPECTED
SALARIES FOR NEW POSITIONS CREATED, AND A PLAN FOR THE  SUBSEQUENT  FIVE
YEARS,  OUTLINING ANY ADDITIONAL NET NEW JOBS THAT IT PLANS TO CREATE IN
THE FIVE YEARS FOLLOWING CERTIFICATION;
  (5) PROVIDES A PLAN TO THE  COMMISSIONER  DESCRIBING  THE  AMOUNT  AND
DESCRIPTION  OF  PROJECTED  QUALIFIED  INVESTMENTS THAT IT PLANS TO MAKE
FOLLOWING CERTIFICATION; AND
  (6) CERTIFIES UNDER PENALTY OF  PERJURY  THAT  IT  IS  IN  SUBSTANTIAL
COMPLIANCE  WITH  ALL  ENVIRONMENTAL, WORKER PROTECTION AND LOCAL, STATE
AND FEDERAL TAX LAWS.
  (E) ELIGIBLE BUSINESS ENTITIES CERTIFIED AFTER JULY FIRST,  TWO  THOU-
SAND  TEN  PURSUANT  TO  THIS  ARTICLE  AND SUBJECT TO TAX UNDER ARTICLE
NINE-A, TWENTY-TWO, THIRTY-TWO OR THIRTY THREE OF THE TAX LAW  SHALL  BE
ELIGIBLE  TO  CLAIM A CREDIT PURSUANT TO SUBDIVISION NINETEEN OF SECTION
TWO HUNDRED TEN OF THE TAX LAW.
  (F) AN ELIGIBLE ENTITY CERTIFIED AS A  REGIONALLY  SIGNIFICANT  ENTER-
PRISE AFTER JULY FIRST, TWO THOUSAND TEN OR A BUSINESS ENTITY IN A STRA-
TEGIC  INDUSTRY  LOCATED  IN AN INNOVATION ZONE AND CERTIFIED AFTER JULY
FIRST, TWO THOUSAND TEN PURSUANT TO THIS  ARTICLE  AND  SUBJECT  TO  TAX
UNDER  ARTICLE NINE-A, TWENTY-TWO, THIRTY-TWO OR THIRTY-THREE OF THE TAX
LAW SHALL BE ELIGIBLE TO CLAIM A CREDIT PURSUANT TO SUBDIVISION NINETEEN
OF SECTION TWO HUNDRED TEN OF THE TAX LAW.
  (G) AN ENTITY CERTIFIED PURSUANT TO THIS ARTICLE AFTER JULY FIRST, TWO
THOUSAND TEN WHICH MEETS ITS NET  NEW  JOB  AND  INVESTMENT  REQUIREMENT
SHALL  BE ELIGIBLE TO CLAIM A CREDIT EQUAL TO TEN PERCENT OF THE PORTION
OF THE ENTITY'S FEDERAL RESEARCH AND DEVELOPMENT TAX CREDIT THAT RELATES
TO THE PARTICIPANT'S RESEARCH AND DEVELOPMENT  EXPENDITURES  DURING  THE
TAXABLE YEAR.
  (H)  AN  ELIGIBLE  ENTITY CERTIFIED AS A REGIONALLY SIGNIFICANT ENTER-
PRISE AFTER JULY FIRST, TWO THOUSAND TEN OR A BUSINESS ENTITY IN A STRA-
TEGIC INDUSTRY LOCATED IN AN INNOVATION ZONE AND  CERTIFIED  AFTER  JULY
FIRST,  TWO  THOUSAND  TEN PURSUANT TO THIS ARTICLE SHALL BE ELIGIBLE TO
CLAIM A REAL PROPERTY TAX CREDIT PURSUANT TO SECTION FIFTEEN OF THE  TAX
LAW.
  (I)  AN  ELIGIBLE  ENTITY CERTIFIED AS A REGIONALLY SIGNIFICANT ENTER-
PRISE AFTER JULY FIRST, TWO THOUSAND TEN OR  AN  ENTITY  LOCATED  IN  AN

A. 9710--B                         48

INNOVATION  ZONE AND CERTIFIED AFTER JULY FIRST, TWO THOUSAND TEN PURSU-
ANT TO THIS ARTICLE SHALL BE ELIGIBLE TO CLAIM  A  QUALIFIED  INVESTMENT
TAX  CREDIT  ON  QUALIFIED INVESTMENTS MADE DURING THE TAXABLE YEAR. THE
CREDIT  SHALL  BE  EQUAL  TO  TEN PERCENT OF THE COST OR OTHER BASIS FOR
FEDERAL INCOME TAX PURPOSES OF  TANGIBLE  PERSONAL  PROPERTY  AND  OTHER
TANGIBLE  PROPERTY  PURSUANT  TO  SUBDIVISION  TWELVE-B  OF  SECTION TWO
HUNDRED TEN OF THE TAX LAW.
  (J) A BUSINESS ENTITY CERTIFIED PURSUANT TO THIS ARTICLE  WHICH  MEETS
NET  NEW  JOB  AND  INVESTMENT  REQUIREMENTS AND IS A QUALIFIED EMERGING
TECHNOLOGY COMPANY AS DEFINED BY PARAGRAPH (C)  OF  SUBDIVISION  ONE  OF
SECTION  THIRTY-ONE HUNDRED TWO-E OF THE PUBLIC AUTHORITIES LAW SHALL BE
ELIGIBLE TO CLAIM A QUALIFIED EMERGING TECHNOLOGY COMPANY CREDIT  PURSU-
ANT TO SUBDIVISION TWELVE-E OF SECTION TWO HUNDRED TEN OF THE TAX LAW.
  (K)  THE  TAX  CREDIT  COMPONENTS ESTABLISHED IN THIS SECTION SHALL BE
REFUNDABLE AS PROVIDED IN THE TAX LAW. IF A CERTIFIED  ENTITY  FAILS  TO
SATISFY  THE  ELIGIBILITY CRITERIA AND LOSES CERTIFICATION IT SHALL LOSE
THE ABILITY TO CLAIM THE CREDIT. THE ENTITY SHALL ONLY  BE  ELIGIBLE  TO
CLAIM  THE  CREDIT IF THE COMMISSIONER FINDS THAT THE ENTITY HAS MET ITS
JOB AND INVESTMENT REQUIREMENT IN SUBSEQUENT YEARS  AND  THE  ENTITY  IS
RECERTIFIED.  AT  NO TIME SHALL THE ENTITY BE RECERTIFIED IF SUCH ENTITY
HAS NOT MET THE NET NEW JOBS AND INVESTMENT REQUIREMENTS AS PROVIDED  IN
THIS SECTION.
  (L) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, EMPLOYEES AND OFFI-
CERS  OF  THE  DEPARTMENT  OF ECONOMIC DEVELOPMENT AND THE DEPARTMENT OF
TAXATION AND FINANCE SHALL BE ALLOWED AND  ARE  DIRECTED  TO  SHARE  AND
EXCHANGE:
  (1)  INFORMATION  DERIVED FROM TAX RETURNS OR REPORTS THAT IS RELEVANT
TO A TAXPAYER'S ELIGIBILITY TO  PARTICIPATE  IN  THE  EMPIRE  INNOVATION
ZONES PROGRAM;
  (2)  INFORMATION  REGARDING  THE COMPONENT OR COMPONENTS OF THE CREDIT
APPLIED FOR, ALLOWED, OR CLAIMED PURSUANT TO THIS SECTION AND  TAXPAYERS
WHO ARE APPLYING FOR THE CREDIT OR WHO ARE CLAIMING THE CREDIT; AND
  (3)  INFORMATION  CONTAINED  IN  OR  DERIVED  FROM  CREDIT CLAIM FORMS
SUBMITTED TO THE DEPARTMENT OF TAXATION AND FINANCE AND APPLICATIONS FOR
ADMISSION INTO THE EMPIRE INNOVATION ZONES PROGRAM.
  OTHER THAN THE INFORMATION REQUIRED TO  BE  CONTAINED  IN  THE  REPORT
ISSUED  PURSUANT  TO  SUBDIVISION  (M)  OF THIS SECTION, ALL INFORMATION
EXCHANGED BETWEEN THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPART-
MENT OF TAXATION AND FINANCE SHALL  NOT  BE  SUBJECT  TO  DISCLOSURE  OR
INSPECTION  UNDER  THE  STATE'S FREEDOM OF INFORMATION LAW UNDER ARTICLE
SIX OF THE PUBLIC OFFICERS LAW.
  (M) (1) THE COMMISSIONER OF TAXATION  AND  FINANCE  SHALL  PUBLISH  AN
EMPIRE INNOVATION ZONES PROGRAM TAX CREDIT REPORT ANNUALLY BY JUNE THIR-
TIETH.  THE  FIRST REPORT MUST BE PUBLISHED BY JUNE THIRTIETH, TWO THOU-
SAND ELEVEN.
  (2) THE CREDIT REPORT MUST CONTAIN THE FOLLOWING INFORMATION ABOUT THE
EMPIRE INNOVATION ZONE PROGRAM TAX CREDIT  CLAIMED  UNDER  THIS  CHAPTER
DURING THE PREVIOUS CALENDAR YEAR:
  (I)  THE NAME OF EACH TAXPAYER CLAIMING A CREDIT; PROVIDED HOWEVER, IF
THE TAXPAYER CLAIMS A 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 COMPA-
NY, PARTNERSHIP OR SUBCHAPTER S CORPORATION EARNING ANY  OF  THE  CREDIT
MUST BE INCLUDED IN THE REPORT INSTEAD OF INFORMATION ABOUT THE TAXPAYER
CLAIMING THE CREDIT; AND

A. 9710--B                         49

  (II)  THE  AMOUNT  OF  EACH  CREDIT  EARNED BY EACH TAXPAYER; PROVIDED
HOWEVER, IF THE TAXPAYER CLAIMS A  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 AMOUNT OF  CREDIT  EARNED
BY  EACH  ENTITY  MUST  BE INCLUDED IN THE REPORT INSTEAD OF INFORMATION
ABOUT THE TAXPAYER CLAIMING THE CREDIT.
  (3) THE CREDIT REPORT MAY ALSO CONTAIN ANY OTHER INFORMATION  RECEIVED
BY  THE  COMMISSIONER  OF TAXATION AND FINANCE WITH REGARD TO THE EMPIRE
INNOVATION ZONES PROGRAM TAX CREDIT THAT IS DEEMED TO BE USEFUL IN EVAL-
UATING THE USE OF THE CREDIT. THE INFORMATION  INCLUDED  IN  THE  CREDIT
REPORT  WILL  BE  BASED  ON THE INFORMATION FILED WITH THE DEPARTMENT OF
TAXATION AND FINANCE DURING THE PREVIOUS CALENDAR YEAR,  TO  THE  EXTENT
THAT IT IS PRACTICABLE TO USE THAT INFORMATION.
  (N)  IF  CERTIFICATION  OF A BUSINESS ENTITY BY THE COMMISSIONER UNDER
SECTION NINE HUNDRED SEVENTY-TWO-A OF THIS ARTICLE IS REVOKED THE AMOUNT
OF CREDIT DESCRIBED IN THIS SECTION AND CLAIMED BY THE TAXPAYER PRIOR TO
THAT REVOCATION SHALL BE ADDED BACK TO INCOME IN  THE  TAXABLE  YEAR  IN
WHICH ANY SUCH REVOCATION BECOMES FINAL.
  S 972-A. RESPONSIBILITIES OF THE COMMISSIONER. AFTER CONSULTATION WITH
THE  DIRECTOR  OF  THE BUDGET, THE COMMISSIONER OF LABOR AND THE COMMIS-
SIONER OF TAXATION AND FINANCE, THE COMMISSIONER SHALL PROMULGATE  REGU-
LATIONS,  WHICH,  NOTWITHSTANDING  ANY PROVISIONS TO THE CONTRARY IN THE
STATE ADMINISTRATIVE PROCEDURE ACT,  MAY  BE  ADOPTED  ON  AN  EMERGENCY
BASIS, GOVERNING:
  (A)  THE  CERTIFICATION  BY  THE COMMISSIONER AS TO THE ELIGIBILITY OF
BUSINESS ENTERPRISES FOR BENEFITS REFERRED TO IN  SECTION  NINE  HUNDRED
SEVENTY-TWO OF THIS ARTICLE, WHICH SHALL BE GOVERNED BY CRITERIA INCLUD-
ING,  BUT  NOT LIMITED TO:  (1) WHETHER SUCH BUSINESS MEETS THE REQUIRE-
MENTS OF THE NET NEW JOBS AND/OR THE INVESTMENT CRITERIA AS PROVIDED  IN
SECTION  NINE  HUNDRED  SEVENTY-TWO  OF  THIS  ARTICLE;  (2) WHETHER THE
COMMISSIONER OF LABOR ESTABLISHES THAT SUCH BUSINESS ENTERPRISE,  DURING
THE  THREE  YEARS PRECEDING THE SUBMISSION OF AN APPLICATION FOR CERTIF-
ICATION, HAS  ENGAGED  IN  A  SUBSTANTIAL  VIOLATION  OR  A  PATTERN  OF
VIOLATIONS  OF  LAWS REGULATING UNEMPLOYMENT INSURANCE, WORKERS' COMPEN-
SATION, PUBLIC WORK, CHILD LABOR, EMPLOYMENT OF  MINORITIES  AND  WOMEN,
SAFETY AND HEALTH, OR OTHER LAWS FOR THE PROTECTION OF WORKERS AS DETER-
MINED  BY  FINAL  JUDGMENT OF A JUDICIAL OR ADMINISTRATIVE PROCEEDING IN
WHICH CASE, SUCH BUSINESS SHALL NOT BE CERTIFIED; AND  (3)  WHETHER  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 IN PARAGRAPH ONE OF THIS SUBDIVISION
OR REGULATIONS PROMULGATED PURSUANT 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, IN
WHICH CASE, SUCH BUSINESS SHALL NOT BE CERTIFIED;
  (B) THE 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 SEVEN-
TY-TWO OF THIS ARTICLE WITH RESPECT TO BUSINESS ENTERPRISES UPON A FIND-
ING 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;
  (C) THE DECERTIFICATION BY  THE  COMMISSIONER  SO  AS  TO  REVOKE  THE
CERTIFICATION  OF  BUSINESS  ENTERPRISES  FOR  BENEFITS  REFERRED  TO IN
SECTION NINE HUNDRED SEVENTY-TWO OF THIS ARTICLE WITH RESPECT TO A BUSI-
NESS ENTERPRISE UPON A FINDING OF ANY ONE  OF  THE  FOLLOWING:  (1)  THE

A. 9710--B                         50

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 REPRESENTATIONS CONTAINED IN ITS APPLICATION  FOR
CERTIFICATION;  OR  (3) THE BUSINESS ENTERPRISE HAS FAILED TO CREATE NEW
EMPLOYMENT OR PREVENT A LOSS THEREOF; OR
  (D) WHERE APPLICABLE, THE BUSINESS ENTERPRISE HAS FAILED TO SUBMIT  AN
ANNUAL  REPORT  AFTER  IT  HAS  APPLIED FOR ZONE TAX BENEFITS OR PROGRAM
ASSISTANCE BASED ON NEW HIRES OR INVESTMENTS OR FAILED TO  SUBMIT  OTHER
INFORMATION WHEN DUE.
  S  973.  LOCAL  ADMINISTRATION.  (A)  THE LOCAL EMPIRE INNOVATION ZONE
ADMINISTRATIVE BOARD SHALL BE THE SAME BOARD AS AUTHORIZED  PURSUANT  TO
SECTION NINE HUNDRED SIXTY-THREE OF THIS CHAPTER, AND SHALL:
  (1)  DEVELOP  SHORT-TERM GOALS FOR ZONE ACTIVITIES ON AN ANNUAL BASIS;
AND
  (2) PREPARE, OR CAUSE TO BE PREPARED,  AN  ANNUAL  REPORT  AND  SUBMIT
COPIES  TO  THE  DEPARTMENT OF AUDIT AND CONTROL, DEPARTMENT OF TAXATION
AND FINANCE, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER  OF  THE
ASSEMBLY  AND  DEPARTMENT OF ECONOMIC DEVELOPMENT ON OR BEFORE THE FIRST
DAY OF JULY NEXT SUCCEEDING THE  YEAR  TO  WHICH  THE  REPORT  PERTAINS,
REGARDING EMPIRE ZONE ACTIVITIES.
  (B)  THE ANNUAL REPORT OF THE LOCAL EMPIRE INNOVATION ZONE ADMINISTRA-
TIVE BOARD REQUIRED BY THIS SUBDIVISION SHALL INCLUDE, BUT NOT BE LIMIT-
ED TO, THE FOLLOWING INFORMATION WITH RESPECT TO  THE  YEAR  IMMEDIATELY
PRECEDING THE YEAR WHICH IS THE SUBJECT OF THE REPORT:
  (1)  THE  NUMBER  OF  TAXPAYERS  CLAIMING  EACH  OF THE TAX CREDITS OR
REFUNDS AS DESCRIBED IN SUBDIVISIONS (E), (F), (G), (H), (I) AND (J)  OF
SECTION  NINE  HUNDRED  SEVENTY-TWO  OF  THIS ARTICLE, TOGETHER WITH THE
TOTAL AMOUNT OF EACH  CREDIT  CLAIMED  BY  TAXPAYERS  IN  THE  AGGREGATE
AGAINST  THEIR TAXES IN THE YEAR TO WHICH THE REPORT PERTAINS, RESULTING
FROM TAXPAYER ACTIVITY IN THE EMPIRE INNOVATION ZONE; AND
  (2) ANY OTHER INFORMATION REGARDING EMPIRE ZONE ACTIVITIES  WHICH  THE
DEPARTMENT  OF  ECONOMIC DEVELOPMENT MAY REQUIRE UPON ITS OWN REQUEST OR
THAT OF THE DEPARTMENT OF AUDIT AND CONTROL, DEPARTMENT OF TAXATION  AND
FINANCE, OR THE LEGISLATIVE COMMISSION ON EXPENDITURE REVIEW.
  (C)  THE  COMMISSIONER SHALL PROVIDE TO THE TEMPORARY PRESIDENT OF THE
SENATE, THE SPEAKER OF THE ASSEMBLY AND THE COMMISSIONER OF TAXATION AND
FINANCE A CONSOLIDATED STATEWIDE  REPORT  OF  THE  INFORMATION  REQUIRED
PURSUANT  TO  THIS SECTION. SUCH REPORT SHALL CONTAIN AN ANALYSIS OF THE
PERFORMANCE OF EACH ZONE USING THE INFORMATION OBTAINED PURSUANT TO THIS
SECTION. SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, THE NUMBER OF
JOBS CREATED, AS DERIVED  FROM  PARAGRAPH  ONE  OF  SUBDIVISION  (B)  OF
SECTION  FOURTEEN  OF  THE TAX LAW, FOR ALL BUSINESSES IN EACH ZONE, AND
THE NUMBER OF NEW BUSINESSES IN EACH ZONE.
  (D) NO DESIGNATED EMPIRE INNOVATION  ZONE  SHALL  REQUIRE  OR  SOLICIT
FUNDS  FROM  BUSINESSES, WHETHER CERTIFIED OR NOT, FOR USE IN THE EMPIRE
INNOVATION ZONES PROGRAM AS CREATED BY THIS ARTICLE. NO  BUSINESS  SHALL
BE  REQUIRED  TO  PAY  ANY FUNDS TO PARTICIPATE IN THE EMPIRE INNOVATION
ZONES PROGRAM.
  (E) 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:

A. 9710--B                         51

  (1)  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;
  (2)  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;
  (3)  CAPITAL  INVESTMENT TO INCLUDE: TOTAL INVESTMENT MADE IN THE ZONE
FOR THE REPORTED YEAR;
  (4) TAX BENEFITS USED AND  REFUNDED:  PROVIDE  AN  ESTIMATION  OF  THE
AMOUNT  OF  THE  TAX BENEFITS USED AND REFUNDED FOR THE REPORTED YEAR BY
THE CERTIFIED BUSINESS, OR BY THE TAXPAYERS WITHIN THE  CERTIFIED  BUSI-
NESS  INCLUDING  ITS  SHAREHOLDERS,  MEMBERS, PARTNERS OR THE OWNER OF A
SOLE PROPRIETORSHIP INCLUDING THE WAGE TAX CREDITS, INVESTMENT TAX CRED-
ITS, EMPLOYMENT INCENTIVE TAX CREDITS, REAL  PROPERTY  TAX  CREDIT,  TAX
REDUCTION CREDIT; AND
  (5) THE SALES TAX CREDITS AND REFUNDS FOR THE REPORTED YEAR.
  S  31-a.  Subdivision  (b)  of section 15 of the tax law is amended by
adding a new paragraph 4 to read as follows:
  (4) FOR A BUSINESS ENTERPRISE WHICH IS FIRST CERTIFIED  UNDER  ARTICLE
EIGHTEEN-D  OF  THE  GENERAL  MUNICIPAL  LAW ON OR AFTER JULY FIRST, TWO
THOUSAND TEN, THE CREDIT ALLOWED SHALL BE FOR A PERIOD OF FIVE YEARS AND
SHALL NOT EXCEED FIFTY PERCENT OF THE ELIGIBLE REAL PROPERTY TAXES  PAID
IN  THE  FIRST  TAXABLE  YEAR OF ELIGIBILITY. IN THE REMAINING YEARS THE
MAXIMUM CREDIT SHALL BE REDUCED ACCORDING TO THE FOLLOWING SCHEDULE:
  YEAR 2: 40% OF ELIGIBLE REAL PROPERTY TAXES
  YEAR 3: 30% OF ELIGIBLE REAL PROPERTY TAXES
  YEAR 4: 20% OF ELIGIBLE REAL PROPERTY TAXES
  YEAR 5: 10% OF ELIGIBLE REAL PROPERTY TAXES.
  S 2. The tax law is amended by adding a new  section  31  to  read  as
follows:
  S  31.  EMPIRE INNOVATION ZONES. (A) ELIGIBLE BUSINESS ENTITIES CERTI-
FIED AFTER JULY FIRST, TWO THOUSAND TEN PURSUANT TO  ARTICLE  EIGHTEEN-D
OF  THE  GENERAL  MUNICIPAL LAW AND SUBJECT TO TAX UNDER ARTICLE NINE-A,
TWENTY-TWO, THIRTY-TWO OR THIRTY-THREE OF THIS CHAPTER SHALL BE  ALLOWED
A WAGE TAX CREDIT PURSUANT TO SUBSECTION NINETEEN OF SECTION TWO HUNDRED
TEN OF THIS CHAPTER.
  (B)  ELIGIBLE  BUSINESS ENTITIES CERTIFIED AFTER JULY FIRST, TWO THOU-
SAND TEN PURSUANT TO ARTICLE EIGHTEEN-D OF THE GENERAL MUNICIPAL LAW AND
SUBJECT  TO  TAX  UNDER  ARTICLE  NINE-A,  TWENTY-TWO,   THIRTY-TWO   OR
THIRTY-THREE  OF  THIS  CHAPTER  SHALL  BE ALLOWED A CREDIT EQUAL TO TEN
PERCENT OF THE PORTION OF THE TAXPAYER'S FEDERAL RESEARCH  AND  DEVELOP-
MENT  TAX  CREDIT  THAT RELATES TO THE ENTITY'S RESEARCH AND DEVELOPMENT
EXPENDITURES DURING THE APPLICABLE YEAR.
  (C) ELIGIBLE BUSINESS ENTITIES CERTIFIED AS A  REGIONALLY  SIGNIFICANT
ENTERPRISE  AND/OR  LOCATED  IN  AN EMPIRE INNOVATION ZONE AND CERTIFIED
AFTER JULY FIRST, TWO THOUSAND TEN PURSUANT TO ARTICLE EIGHTEEN-D OF THE

A. 9710--B                         52

GENERAL  MUNICIPAL  LAW  AND  SUBJECT  TO  TAX  UNDER  ARTICLE   NINE-A,
TWENTY-TWO, THIRTY-TWO OR THIRTY-THREE OF THIS CHAPTER SHALL BE ELIGIBLE
TO CLAIM A QUALIFIED INVESTMENT TAX CREDIT ON QUALIFIED INVESTMENTS MADE
DURING THE TAXABLE YEAR. THE CREDIT SHALL BE EQUAL TO TEN PERCENT OF THE
COST OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF TANGIBLE PERSONAL
PROPERTY AND OTHER TANGIBLE PROPERTY PURSUANT TO SUBDIVISION TWELVE-B OF
SECTION TWO HUNDRED TEN OF THIS CHAPTER.
  (D) QUALIFIED INVESTMENT TAX CREDIT. AN ELIGIBLE ENTITY CERTIFIED AS A
REGIONALLY  SIGNIFICANT ENTERPRISE AFTER JULY FIRST, TWO THOUSAND TEN OR
AN ENTITY LOCATED IN AN EMPIRE INNOVATION ZONE AND CERTIFIED AFTER  JULY
FIRST,  TWO  THOUSAND  TEN PURSUANT TO THIS SECTION SHALL BE ELIGIBLE TO
CLAIM A QUALIFIED INVESTMENT TAX CREDIT ON  QUALIFIED  INVESTMENTS  MADE
DURING THE TAXABLE YEAR. THE CREDIT SHALL BE EQUAL TO TEN PERCENT OF THE
COST OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF TANGIBLE PERSONAL
PROPERTY AND OTHER TANGIBLE PROPERTY PURSUANT TO SUBDIVISION TWELVE-B OF
SECTION TWO HUNDRED TEN OF THIS CHAPTER.
  (E)  BUSINESS  ENTITIES CERTIFIED PURSUANT TO THIS SECTION WHICH MEETS
ITS NET NEW JOB AND INVESTMENT REQUIREMENT AND IS A  QUALIFIED  EMERGING
TECHNOLOGY COMPANY AS DEFINED BY SECTION THIRTY-ONE HUNDRED TWO-E OF THE
PUBLIC  AUTHORITIES  LAW SHALL BE ELIGIBLE TO CLAIM A QUALIFIED EMERGING
TECHNOLOGY COMPANY CREDIT PURSUANT TO SUBDIVISION  TWELVE-E  OF  SECTION
TWO HUNDRED TEN OF THIS CHAPTER.
  S 3. Section 210 of the tax law is amended by adding a new subdivision
41 to read as follows:
  41.  EMPIRE INNOVATION ZONE PROGRAM TAX CREDIT. (A) ALLOWANCE OF CRED-
IT. A TAXPAYER WILL BE ALLOWED A CREDIT, TO BE COMPUTED AS  PROVIDED  IN
SECTION  THIRTY-ONE  OF  THIS  CHAPTER,  AGAINST THE TAX IMPOSED BY THIS
ARTICLE.
  (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY  TAXABLE  YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND  (D)  OF
SUBDIVISION  ONE  OF  THIS  SECTION.  HOWEVER,  IF  THE AMOUNT OF CREDIT
ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE  TAX  TO
SUCH  AMOUNT,  ANY  AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED
IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX  OF
THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE PROVISIONS OF SUBSECTION (C) OF
SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS  CHAPTER  NOTWITHSTANDING,  NO
INTEREST WILL BE PAID THEREON.
  S  4. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
  (QQ) EMPIRE INNOVATION ZONE PROGRAM TAX CREDIT. (1) A TAXPAYER WILL BE
ALLOWED A CREDIT, TO THE EXTENT ALLOWED UNDER SECTION THIRTY-ONE OF THIS
CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
OR  REFUNDED  IN  ACCORDANCE  WITH THE PROVISIONS OF SECTION SIX HUNDRED
EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL  BE
PAID THEREON.
  S  5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a  new  clause  (xxxi)  to  read  as
follows:

A. 9710--B                         53

(XXXI) EMPIRE INNOVATION ZONE
PROGRAM TAX                        AMOUNT OF CREDIT UNDER SUBDIVISION
CREDIT UNDER SUBSECTION (QQ)       FORTY-ONE OF SECTION TWO HUNDRED TEN

  S 6. Section 1456 of the tax law is amended by adding a new subsection
(u) to read as follows:
  (U)  EMPIRE INNOVATION ZONE PROGRAM TAX CREDIT. (1) ALLOWANCE OF CRED-
IT. A TAXPAYER WILL BE ALLOWED A CREDIT, TO BE COMPUTED AS  PROVIDED  IN
SECTION  THIRTY-ONE  OF  THIS  CHAPTER,  AGAINST THE TAX IMPOSED BY THIS
ARTICLE.
  (2) THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR WILL
NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE MINIMUM TAX  FIXED
BY  PARAGRAPH THREE OF SUBSECTION (B) OF SECTION FOURTEEN HUNDRED FIFTY-
FIVE OF THIS ARTICLE. HOWEVER, IF THE AMOUNT  OF  CREDIT  ALLOWED  UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY
AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR WILL BE TREAT-
ED  AS  AN  OVERPAYMENT  OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE
WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS  CHAPTER.
PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOU-
SAND  EIGHTY-EIGHT  OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST WILL BE
PAID THEREON.
  S 7. Section 1511 of the tax law is amended by adding a  new  subdivi-
sion (y) to read as follows:
  (Y)  EMPIRE INNOVATION ZONE PROGRAM TAX CREDIT. (1) ALLOWANCE OF CRED-
IT. A TAXPAYER WILL BE ALLOWED A CREDIT, TO BE COMPUTED AS  PROVIDED  IN
SECTION  THIRTY-ONE  OF  THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS
ARTICLE.
  (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY  TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM TAX FIXED BY THIS ARTICLE. HOWEVER, IF  THE  AMOUNT  OF
CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS  NOT  DEDUCTIBLE  IN  SUCH
TAXABLE  YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH  THE  PROVISIONS  OF  SECTION  ONE  THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
  S 8. This act shall take effect July 1, 2010.

                                 PART X

  Section  1.  Paragraph  1 of subsection (oo) of section 606 of the tax
law, as amended by chapter 239 of the laws of 2009, is amended  to  read
as follows:
  (1)  (A)  For  taxable  years beginning on or after January first, two
thousand ten AND  BEFORE  JANUARY  FIRST,  TWO  THOUSAND  FIFTEEN,  [any
person,  firm,  partnership,  limited  liability company, corporation or
other business entity] A TAXPAYER shall be allowed a credit  as  herein-
after  provided,  against  the tax imposed by this article, in an amount
equal to one hundred percent of the amount of credit allowed the taxpay-
er [for the same taxable year] with  respect  to  a  certified  historic
structure  under  subsection  [(c)] (A) (2) of section 47 of the federal
internal revenue code with respect to  a  certified  historic  structure
located  within  the  state.    Provided,  however, the credit shall not
exceed five million dollars.  FOR TAXABLE YEARS BEGINNING  ON  OR  AFTER
JANUARY FIRST, TWO THOUSAND FIFTEEN, A TAXPAYER SHALL BE ALLOWED A CRED-

A. 9710--B                         54

IT  AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE, IN
AN AMOUNT EQUAL TO THIRTY PERCENT OF THE AMOUNT OF  CREDIT  ALLOWED  THE
TAXPAYER WITH RESPECT TO A CERTIFIED HISTORIC STRUCTURE UNDER SUBSECTION
(A)(2)  OF  SECTION 47 OF THE FEDERAL INTERNAL REVENUE CODE WITH RESPECT
TO A CERTIFIED HISTORIC STRUCTURE LOCATED WITHIN  THE  STATE;  PROVIDED,
HOWEVER, THE CREDIT SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS.
  (B)  IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR A SHAREHOLDER OF
A NEW YORK S CORPORATION, THEN THE CREDIT CAP  IMPOSED  IN  SUBPARAGRAPH
(A)  OF THIS PARAGRAPH SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT THE
AGGREGATE CREDIT ALLOWED TO ALL THE PARTNERS  OR  SHAREHOLDERS  OF  EACH
SUCH  ENTITY  IN THE TAXABLE YEAR DOES NOT EXCEED THE CREDIT CAP THAT IS
APPLICABLE IN THAT TAXABLE YEAR.
  S 2. Subparagraphs (A) and (B) of paragraph 2 of  subsection  (pp)  of
section  606  of  the  tax law, as amended by chapter 239 of the laws of
2009, are amended to read as follows:
  (A) With respect to any particular residence of a taxpayer, the credit
allowed under paragraph one of this subsection shall  not  exceed  fifty
thousand  dollars FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,
TWO THOUSAND TEN AND BEFORE JANUARY  FIRST,  TWO  THOUSAND  FIFTEEN  AND
TWENTY-FIVE  THOUSAND  DOLLARS  FOR  TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND FIFTEEN.  In the case of a husband and wife,
the amount of the credit shall be divided between  them  equally  or  in
such other manner as they may both elect. If a taxpayer incurs qualified
rehabilitation  expenditures  in  relation to more than one residence in
the same year, the total amount of credit allowed under paragraph one of
this subsection for all such expenditures shall not exceed [twenty-five]
FIFTY thousand dollars FOR TAXABLE YEARS BEGINNING ON OR  AFTER  JANUARY
FIRST,  TWO  THOUSAND TEN AND BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN
AND TWENTY-FIVE THOUSAND DOLLARS FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND FIFTEEN.
  (B) [If] FOR TAXABLE YEARS BEGINNING ON OR AFTER  JANUARY  FIRST,  TWO
THOUSAND  TEN  AND  BEFORE  JANUARY  FIRST, TWO THOUSAND FIFTEEN, IF the
amount of credit  allowable  under  this  subsection  shall  exceed  the
taxpayer's tax for such year, and the taxpayer's New York adjusted gross
income  for such year does not exceed sixty thousand dollars, the excess
shall be treated as an overpayment of tax to be credited or refunded  in
accordance with the provisions of section six hundred eighty-six of this
article,  provided,  however, that no interest shall be paid thereon. If
the taxpayer's New York adjusted gross  income  for  such  year  exceeds
sixty  thousand  dollars,  the excess credit that may be carried over to
the following year or years and may be deducted from the taxpayer's  tax
for such year or years.  FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
FIRST,  TWO  THOUSAND  FIFTEEN,  IF THE AMOUNT OF CREDIT ALLOWABLE UNDER
THIS SUBSECTION SHALL EXCEED THE  TAXPAYER'S  TAX  FOR  SUCH  YEAR,  THE
EXCESS  MAY  BE  CARRIED  OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE
DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S 3. Paragraphs 1, 3 and 4 of subdivision 40 of section 210 of the tax
law, as amended by chapter 239 of the laws of 2009, are amended to  read
as follows:
  (1)  (A)  For  taxable  years beginning on or after January first, two
thousand ten AND  BEFORE  JANUARY  FIRST,  TWO  THOUSAND  FIFTEEN,  [any
person,  firm,  partnership,  limited  liability company, corporation or
other business entity] A TAXPAYER shall be allowed a credit  as  herein-
after  provided,  against  the tax imposed by this article, in an amount
equal to one hundred percent of the amount of credit allowed the taxpay-
er [for the same taxable year] with  respect  to  a  certified  historic

A. 9710--B                         55

structure  under  subsection  [(c)] (A) (2) of section 47 of the federal
internal revenue code with respect to  a  certified  historic  structure
located  within  the  state.    Provided,  however, the credit shall not
exceed  five  million dollars.   FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND FIFTEEN, A TAXPAYER SHALL BE ALLOWED A CRED-
IT AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE,  IN
AN  AMOUNT  EQUAL  TO THIRTY PERCENT OF THE AMOUNT OF CREDIT ALLOWED THE
TAXPAYER WITH RESPECT TO A CERTIFIED HISTORIC STRUCTURE UNDER SUBSECTION
(A)(2) OF SECTION 47 OF THE FEDERAL INTERNAL REVENUE CODE  WITH  RESPECT
TO  A  CERTIFIED HISTORIC STRUCTURE LOCATED WITHIN THE STATE.  PROVIDED,
HOWEVER, THE CREDIT SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS.
  (B) IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR A SHAREHOLDER  IN
A  NEW  YORK S CORPORATION, THEN THE CREDIT CAPS IMPOSED IN SUBPARAGRAPH
(A) OF THIS PARAGRAPH SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT  THE
AGGREGATE  CREDIT  ALLOWED  TO  ALL THE PARTNERS OR SHAREHOLDERS OF EACH
SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED THE CREDIT CAP  THAT  IS
APPLICABLE IN THAT TAXABLE YEAR.
  (3)  If  the credit allowed the taxpayer pursuant to section 47 of the
internal revenue code with respect  to  a  qualified  rehabilitation  is
recaptured  pursuant  to  subsection  (a)  of section 50 of the internal
revenue code, a portion of the credit allowed under this subsection must
be added back in the same taxable year and in  the  same  proportion  as
[such credit] THE FEDERAL RECAPTURE.
  (4)  [If]  THE  CREDIT  ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE
YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE  HIGHER
OF  THE  AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE
OF THIS SECTION.  HOWEVER, IF the amount of the credit  allowable  under
this  subdivision  for  any taxable year shall exceed the taxpayer's tax
for such year, the excess may be carried over to the following  year  or
years,  and  may  be [applied] DEDUCTED from the taxpayer's tax for such
year or years.
  S 4. Subdivision 40 of section 210 of the tax law, as amended by chap-
ter 239 of the laws of 2009, is amended by adding a new paragraph  5  to
read as follows:
  (5)  TO  BE  ELIGIBLE FOR THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION,
THE REHABILITATION PROJECT SHALL BE IN WHOLE OR IN PART A TARGETED  AREA
RESIDENCE  WITHIN  THE MEANING OF SECTION 143(J) OF THE INTERNAL REVENUE
CODE OR LOCATED WITHIN A CENSUS TRACT WHICH IS IDENTIFIED AS BEING AT OR
BELOW ONE HUNDRED PERCENT OF THE STATE MEDIAN FAMILY INCOME IN THE  MOST
RECENT FEDERAL CENSUS.
  S 5. Section 1456 of the tax law is amended by adding a new subsection
(u) to read as follows:
  (U) CREDIT FOR REHABILITATION OF HISTORIC PROPERTIES. (1)(A) FOR TAXA-
BLE  YEARS  BEGINNING  ON  OR  AFTER JANUARY FIRST, TWO THOUSAND TEN AND
BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, A TAXPAYER SHALL BE  ALLOWED
A  CREDIT AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE, IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF THE AMOUNT  OF  CREDIT
ALLOWED  THE  TAXPAYER  WITH  RESPECT  TO A CERTIFIED HISTORIC STRUCTURE
UNDER SUBSECTION (A)(2) OF SECTION 47 OF THE  FEDERAL  INTERNAL  REVENUE
CODE  WITH  RESPECT TO A CERTIFIED HISTORIC STRUCTURE LOCATED WITHIN THE
STATE. PROVIDED, HOWEVER, THE  CREDIT  SHALL  NOT  EXCEED  FIVE  MILLION
DOLLARS.  FOR  TAXABLE  YEARS  BEGINNING  ON OR AFTER JANUARY FIRST, TWO
THOUSAND FIFTEEN, A TAXPAYER SHALL BE ALLOWED A  CREDIT  AS  HEREINAFTER
PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE, IN AN AMOUNT EQUAL TO
THIRTY PERCENT OF THE AMOUNT OF CREDIT ALLOWED THE TAXPAYER WITH RESPECT
TO  A CERTIFIED HISTORIC STRUCTURE UNDER SUBSECTION (A)(2) OF SECTION 47

A. 9710--B                         56

OF THE FEDERAL INTERNAL REVENUE CODE WITH RESPECT TO A CERTIFIED HISTOR-
IC STRUCTURE LOCATED WITHIN THE STATE.   PROVIDED, HOWEVER,  THE  CREDIT
SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS.
  (B)  IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR A SHAREHOLDER OF
A NEW YORK S CORPORATION, THEN THE CREDIT CAPS IMPOSED  IN  SUBPARAGRAPH
(A)  OF THIS PARAGRAPH SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT THE
AGGREGATE CREDIT ALLOWED TO ALL THE PARTNERS  OR  SHAREHOLDERS  OF  EACH
SUCH  ENTITY  IN THE TAXABLE YEAR DOES NOT EXCEED THE CREDIT CAP THAT IS
APPLICABLE IN THAT TAXABLE YEAR.
  (2) TAX CREDITS ALLOWED PURSUANT TO THIS SUBSECTION SHALL  BE  ALLOWED
IN  THE  TAXABLE  YEAR  THAT  THE  QUALIFIED REHABILITATION IS PLACED IN
SERVICE UNDER SECTION 167 OF THE FEDERAL INTERNAL REVENUE CODE.
  (3) IF THE CREDIT ALLOWED THE TAXPAYER PURSUANT TO SECTION 47  OF  THE
INTERNAL  REVENUE  CODE  WITH  RESPECT  TO A QUALIFIED REHABILITATION IS
RECAPTURED PURSUANT TO SUBSECTION (A) OF  SECTION  50  OF  THE  INTERNAL
REVENUE CODE, A PORTION OF THE CREDIT ALLOWED UNDER THIS SUBSECTION MUST
BE ADDED BACK IN THE SAME TAXABLE YEAR AND IN THE SAME PROPORTION AS THE
FEDERAL RECAPTURE.
  (4)  THE  CREDIT  ALLOWED  UNDER  THIS SUBSECTION FOR ANY TAXABLE YEAR
SHALL NOT REDUCE THE TAX TO LESS THAN THE DOLLAR AMOUNT FIXED AS A MINI-
MUM TAX BY SUBSECTION (B) OF SECTION FOURTEEN HUNDRED FIFTY-FIVE OF THIS
ARTICLE.  IF THE AMOUNT OF CREDIT ALLOWABLE UNDER  THIS  SUBSECTION  FOR
ANY  TAXABLE  YEAR  REDUCES  THE  TAX  TO SUCH AMOUNT, THE EXCESS MAY BE
CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY  BE  DEDUCTED  FROM
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  (5)  TO BE ELIGIBLE FOR THE CREDIT ALLOWABLE UNDER THIS SUBSECTION THE
REHABILITATION PROJECT SHALL BE IN WHOLE OR  IN  PART  A  TARGETED  AREA
RESIDENCE  WITHIN  THE MEANING OF SECTION 143(J) OF THE INTERNAL REVENUE
CODE OR LOCATED WITHIN A CENSUS TRACT WHICH IS IDENTIFIED AS BEING AT OR
BELOW ONE HUNDRED PERCENT OF THE STATE MEDIAN FAMILY INCOME IN THE  MOST
RECENT FEDERAL CENSUS.
  S 6. Section 1511 of the tax law is amended by adding a new subsection
(y) to read as follows:
  (Y) CREDIT FOR REHABILITATION OF HISTORIC PROPERTIES. (1)(A) FOR TAXA-
BLE  YEARS  BEGINNING  ON  OR  AFTER JANUARY FIRST, TWO THOUSAND TEN AND
BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, A TAXPAYER SHALL BE  ALLOWED
A  CREDIT AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE, IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF THE AMOUNT  OF  CREDIT
ALLOWED  THE  TAXPAYER  WITH  RESPECT  TO A CERTIFIED HISTORIC STRUCTURE
UNDER SUBSECTION (A)(2) OF SECTION 47 OF THE  FEDERAL  INTERNAL  REVENUE
CODE  WITH  RESPECT TO A CERTIFIED HISTORIC STRUCTURE LOCATED WITHIN THE
STATE. PROVIDED, HOWEVER, THE  CREDIT  SHALL  NOT  EXCEED  FIVE  MILLION
DOLLARS.  FOR  TAXABLE  YEARS  BEGINNING  ON OR AFTER JANUARY FIRST, TWO
THOUSAND FIFTEEN, A TAXPAYER SHALL BE ALLOWED A  CREDIT  AS  HEREINAFTER
PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE, IN AN AMOUNT EQUAL TO
THIRTY PERCENT OF THE AMOUNT OF CREDIT ALLOWED THE TAXPAYER WITH RESPECT
TO  A CERTIFIED HISTORIC STRUCTURE UNDER SUBSECTION (A)(2) OF SECTION 47
OF THE FEDERAL INTERNAL REVENUE CODE WITH RESPECT TO A CERTIFIED HISTOR-
IC STRUCTURE LOCATED WITHIN THE STATE.   PROVIDED, HOWEVER,  THE  CREDIT
SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS.
  (B)  IF  THE  TAXPAYER  IS  A  PARTNER  IN A PARTNERSHIP, THEN THE CAP
IMPOSED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL BE  APPLIED  AT  THE
ENTITY  LEVEL,  SO THAT THE AGGREGATE CREDIT ALLOWED TO ALL THE PARTNERS
OF SUCH PARTNERSHIP IN THE TAXABLE YEAR DOES NOT EXCEED THE  CREDIT  CAP
THAT IS APPLICABLE IN THAT TAXABLE YEAR.

A. 9710--B                         57

  (2)  TAX  CREDITS ALLOWED PURSUANT TO THIS SUBSECTION SHALL BE ALLOWED
IN THE TAXABLE YEAR THAT  THE  QUALIFIED  REHABILITATION  IS  PLACED  IN
SERVICE UNDER SECTION 167 OF THE FEDERAL INTERNAL REVENUE CODE.
  (3)  IF  THE CREDIT ALLOWED THE TAXPAYER PURSUANT TO SECTION 47 OF THE
INTERNAL REVENUE CODE WITH RESPECT  TO  A  QUALIFIED  REHABILITATION  IS
RECAPTURED  PURSUANT  TO  SUBSECTION  (A)  OF SECTION 50 OF THE INTERNAL
REVENUE CODE, A PORTION OF THE CREDIT ALLOWED UNDER THIS  SUBSECTION  IN
THE  TAXABLE  YEAR THE CREDIT WAS CLAIMED MUST BE ADDED BACK IN THE SAME
TAXABLE YEAR AND IN THE SAME PROPORTION AS THE FEDERAL RECAPTURE.
  (4) THE CREDIT ALLOWED UNDER THIS SUBDIVISION  FOR  ANY  TAXABLE  YEAR
SHALL  NOT  REDUCE  THE  TAX  DUE FOR SUCH YEAR TO LESS THAN THE MINIMUM
FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF  SECTION  FIFTEEN  HUNDRED
TWO  OR  SECTION  FIFTEEN  HUNDRED  TWO-A  OF THIS ARTICLE, WHICHEVER IS
APPLICABLE. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, THE EXCESS  MAY  BE
CARRIED  OVER  TO  THE FOLLOWING YEAR OR YEARS, AND MAY BE DEDUCTED FROM
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  (5) TO BE ELIGIBLE FOR THE CREDIT ALLOWABLE  UNDER  THIS  SUBDIVISION,
THE  REHABILITATION PROJECT SHALL BE IN WHOLE OR IN PART A TARGETED AREA
RESIDENCE WITHIN THE MEANING OF SECTION 143(J) OF THE  INTERNAL  REVENUE
CODE OR LOCATED WITHIN A CENSUS TRACT WHICH IS IDENTIFIED AS BEING AT OR
BELOW  ONE HUNDRED PERCENT OF THE STATE MEDIAN FAMILY INCOME IN THE MOST
RECENT FEDERAL CENSUS.
  S 7. Section 5 of chapter 239 of the laws of 2009 amending the tax law
and other laws relating to providing a tax credit for the rehabilitation
of historic properties, is amended to read as follows:
  S 5. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2010 [and shall  expire  and  be
deemed  repealed  December  31, 2014; provided, however, that the credit
shall be applied to any rehabilitation project commenced  on  or  before
the date on which that act shall be deemed repealed].
  S 8. This act shall take effect immediately.
  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 X of this act shall be
as specifically set forth in the last section of such Parts.

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

    S. 6610--B                                            A. 9710--C

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

                            January 19, 2010
                               ___________

IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
  cle seven of the Constitution -- read twice and ordered  printed,  and
  when  printed to be committed to the Committee on Finance -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

IN  ASSEMBLY  --  A  BUDGET  BILL, submitted by the Governor pursuant to
  article seven of the Constitution -- read once  and  referred  to  the
  Committee  on  Ways  and  Means -- committee discharged, bill amended,
  ordered reprinted as amended and  recommitted  to  said  committee  --
  again  reported from said committee with amendments, ordered reprinted
  as amended and recommitted to said committee --  again  reported  from
  said  committee  with  amendments,  ordered  reprinted  as amended and
  recommitted to said committee

AN ACT to amend the tax law, in relation to the statutory limitation  on
  the  biofuel  production  credit and the qualified emerging technology
  company facilities, operations and training credits (Part A); to amend
  the tax law, in relation to the inclusion of certain  past  employment
  related  income  in  the  calculation of the New York source income of
  nonresidents (Part B); to amend the tax law, in relation to clarifying
  that certain income constitutes New York source income of  nonresident
  shareholders of an S corporation (Part C); Intentionally omitted (Part
  D);  to  amend  the  tax  law, in relation to information reporting of
  payments made in settlement of payment card and  third  party  network
  transactions  (Part  E);  Intentionally omitted (Part F); to amend the
  tax law and the administrative code  of  the  city  of  New  York,  in
  relation to the penalties imposed upon tax return preparers failing to
  electronically  file  returns and other tax documents when required by
  law to do so, to authorize reasonable correction periods for electron-
  ic tax filings and payments, and to prohibit tax return preparers  and
  software  companies  from charging separately for electronic filing of
  New York tax documents  (Part  G);  Intentionally  omitted  (Part  H);
  Intentionally  omitted  (Part  I);  Intentionally omitted (Part J); to
  amend chapter 383 of the laws of 2001 amending the tax law  and  other
  laws  relating to authorizing the division of the lottery to conduct a
  pilot program involving the operation of video  lottery  terminals  at

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD12674-07-0

S. 6610--B                          2                         A. 9710--C

  certain  racetracks,  in relationship to the effectiveness thereof; to
  amend the tax law, in relation to the  hours  of  operation  of  video
  lottery  gaming, the vendor fees paid to lottery agents, the amount of
  video  lottery gaming revenue after payout of prizes to be retained by
  the division of the lottery for operation, administration and procure-
  ment purposes at a certain track and the recapture of the  vendor  fee
  at  a  certain  track;  and to repeal section 13 of chapter 140 of the
  laws of 2008 amending the racing, pari-mutuel  wagering  and  breeding
  law  and  other  laws  relating  to  thoroughbred racing and to repeal
  section 5 of chapter 286 of the laws of  2008  amending  the  tax  law
  relating  to  annual  capital  improvement  credits  for video lottery
  gaming operators, relating thereto  (Part  K);  Intentionally  omitted
  (Part L); to amend the tax law and the administrative code of the city
  of  New  York,  in  relation  to  allowing  recognition  of  marriages
  performed outside New York state (Part M); to amend the  tax  law,  in
  relation  to  narrowing  the  definition of vendor for purposes of the
  sales and compensating use taxes (Part N); Intentionally omitted (Part
  O); to amend the public housing law, in relation to providing a credit
  against income tax for persons or  entities  investing  in  low-income
  housing  (Part  P);  to amend chapter 60 of the laws of 2004, amending
  the tax law relating to the empire state film  production  credit,  in
  relation to the empire state film production credit and in relation to
  the  effectiveness  of  such  provisions;  to  amend  the  tax law, in
  relation to the empire state film production credit; and to amend  the
  tax  law,  in relation to the empire state film post production credit
  (Part Q); to amend the general  municipal  law,  in  relation  to  the
  decertification of business entities located in empire zones; to amend
  the  tax  law,  in  relation to a refund or credit provided to certain
  zone businesses and to a report on empire zone businesses produced  by
  the department of taxation and finance, and to amend chapter 57 of the
  laws  of  2009,  amending  the  general  municipal law and the tax law
  relating to enacting reforms to the empire zones program, in  relation
  to  the  effectiveness  thereof  (Part  R);  to  amend the tax law, in
  relation to making technical corrections to  certain  tax  enforcement
  and  sales  tax  avoidance  provisions; and to amend chapter 57 of the
  laws of 2009 amending the criminal procedure law, the penal  law,  and
  the  tax  law  relating to creating the offense of "tax fraud act", in
  relation to the effectiveness thereof (Subpart A); to  amend  the  tax
  law,  in  relation to defining certain terms (Subpart B); and to amend
  the general municipal law and the public authorities law, in  relation
  to  statements  of  industrial  agencies  and their agents and project
  operators (Subpart C) (Part S); to amend the tax law, in  relation  to
  the  amount  of  the  unified  credit against the estate tax (Part T);
  Intentionally omitted (Part U); to amend the tax law and the  adminis-
  trative  code of the city of New York, in relation to the taxicab ride
  tax imposed in the metropolitan commuter  transportation  district  by
  article  29-A  of the tax law (Part V); to repeal subdivision (e-1) of
  section 1132 of the tax law, relating to a sales tax bad  debt  credit
  or  refund  for purchases made by private label credit cards (Part W);
  to amend the tax law, in relation  to  the  sales  tax  vendor  credit
  authorized  under  article  28  (Part  X);  to  amend  the tax law, in
  relation to the deferral of use or  payment  of  certain  tax  credits
  (Part Y); to amend the tax law and the administrative code of the city
  of  New  York,  in relation to the deduction for bad debts provided to
  qualifying thrift institutions and commercial banks (Part Z); to amend
  the tax law and the administrative code of the city of  New  York,  in

S. 6610--B                          3                         A. 9710--C

  relation  to  ensuring payment of sales tax due on rent for hotel room
  occupancy by room remarketers of hotel rooms and to reverse the  deci-
  sion  of  the Tax Appeals Tribunal in the Marriott International, Inc.
  matter  on rewards program payments; and to repeal certain sections of
  the administrative code of the city of New York relating thereto (Part
  AA); Intentionally omitted (Part BB); to amend the  tax  law  and  the
  administrative  code of the city of New York, in relation to modifying
  the New York itemized deduction (Part CC); Intentionally omitted (Part
  DD); to amend the state finance law, the tax law and  the  administra-
  tive  code  of  the city of New York, in relation to the New York city
  personal income tax rates (Part EE); to amend the  real  property  tax
  law  and  the tax law, in relation to the STAR exemption (Part FF); to
  amend the tax law, in relation to eliminating the  state's  sales  and
  compensating use tax exemption for clothing and footwear sold for less
  than  $110  per item for the period October 1, 2010, through March 31,
  2011; exempting clothing and footwear sold for less than $55 per  item
  from state taxes for the period April 1, 2011, through March 31, 2012;
  authorizing  counties  and cities to elect the less than $55 exemption
  for the same period; and  restoring  the  state's  original  exemption
  April  1,  2012;  and to repeal subdivision (k) of section 1210 of the
  tax law relating thereto; and providing  for  the  repeal  of  certain
  provisions upon expiration thereof (Part GG); to amend the tax law, in
  relation  to  limiting  itemized  deductions for certain taxpayers and
  determining the amount of estimated tax installments to be paid  (Part
  HH);  to  amend  the  abandoned  property law, in relation to uncashed
  travelers checks and money orders and miscellaneous unclaimed property
  (Part II); Intentionally omitted (Part JJ); to amend the tax  law,  in
  relation  to  investment management services to a partnership or other
  entity (Part KK); Intentionally omitted (Part LL); to amend Part  FF-1
  of  chapter 57 of the laws of 2008 relating to the taxation of captive
  real estate investment trusts and captive regulated investment  compa-
  nies, in relation to the application of the provisions of such chapter
  (Part  MM);  to  amend the tax law, in relation to the definition of a
  captive REIT (Part NN); to amend the public service law,  in  relation
  to electric corporations (Part OO); to amend chapter 57 of the laws of
  2009  amending  the education law and other laws relating to contracts
  for excellence, reporting requirements, electronic  format  materials,
  reimbursement of school districts, calculation of foundation aid base,
  foundation  amount and local contribution, apportionment of school aid
  and of current year approved expenditures for  debt  service,  deficit
  reduction  assessment,  building  aid, Medicaid reimbursement, grants,
  and maximum class size, in relation to  deficit  reduction  assessment
  restoration  (Part  PP);  to  amend  the education law, in relation to
  making technical corrections  concerning  gap  elimination  adjustment
  offset  (Part QQ); to amend the public authorities law, in relation to
  the implementation of a state longitudinal data system (Part  RR);  to
  amend  the  vehicle  and  traffic law, in relation to making technical
  amendments concerning designated bus lanes (Part  SS);  to  amend  the
  retirement  and  social  security  law,  in  relation to the manner of
  paying employer contributions to the New York state and local  employ-
  ees'  retirement  system  and  the New York state and local police and
  fire retirement system (Part TT); in relation to the  New  York  state
  urban  development  corporation  submitting  a comprehensive financial
  plan to the director of the budget and the establishment  of  accounts
  and subaccounts within the treasury of such corporation; and providing
  for  the  repeal  of such provisions upon the expiration thereof (Part

S. 6610--B                          4                         A. 9710--C

  UU); to amend the state finance law, in relation to  establishing  the
  education  assessment  account  (Part  VV);  to  amend the tax law, in
  relation to excluding from sales tax transportation  service  provided
  by  an  affiliated  livery  vehicle in a city with a population of one
  million or more (Part WW); to amend the correction law,  the  legisla-
  tive  law,  and  the  municipal  home  rule  law,  in  relation to the
  collection of census data (Part XX); and to  amend  the  tax  law,  in
  relation to little cigars (Part YY)

  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 two thou-
sand ten-two thousand eleven state fiscal year. Each component is wholly
contained  within a Part identified as Parts A through YY. The effective
date for each particular provision contained within  such  Part  is  set
forth  in  the  last  section of such Part. Any provision in any section
contained within a Part, 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.  Subdivision (a) of section 28 of the tax law, as added by
section 1 of part X of chapter 62 of the laws of  2006,  is  amended  to
read as follows:
  (a)  General.  A taxpayer subject to tax under article nine, nine-A or
twenty-two of this chapter shall be allowed a credit  against  such  tax
pursuant  to  the  provisions  referenced  in  subdivision  (d)  of this
section. The credit (or pro rata share of earned credit in the case of a
partnership) for each gallon of biofuel produced at a biofuel  plant  on
or  after  January first, two thousand six shall equal fifteen cents per
gallon after the production of the first forty thousand gallons per year
presented to market. The credit under this section shall  be  capped  at
two and one-half million dollars per taxpayer per taxable year for up to
no  more  than four consecutive taxable years per biofuel plant.  IF THE
TAXPAYER IS A PARTNER IN A PARTNERSHIP OR SHAREHOLDER OF A  NEW  YORK  S
CORPORATION,  THEN  THE  CAP  IMPOSED BY THE PRECEDING SENTENCE SHALL BE
APPLIED AT THE ENTITY LEVEL, SO THAT THE AGGREGATE CREDIT ALLOWED TO ALL
THE PARTNERS OR SHAREHOLDERS OF EACH SUCH ENTITY  IN  THE  TAXABLE  YEAR
DOES NOT EXCEED TWO AND ONE-HALF MILLION DOLLARS.
  S  2. Paragraph (f) of subdivision 12-G of section 210 of the tax law,
as amended by section 1-a of part A of chapter 63 of the laws  of  2005,
is amended to read as follows:
  (f)  An eligible taxpayer may claim credits under this subdivision for
four consecutive taxable years, except, if a taxpayer is located  in  an
academic  incubator  facility  and  relocates within New York state to a
nonacademic incubator site, then the taxpayer (i) may make  a  revocable
election  to  defer  the  credit  provided under this subdivision to the
first taxable year  beginning  after  the  taxpayer  relocates  from  an
academic  incubator facility, and (ii) shall be eligible for such credit
for five consecutive taxable years. In no case shall the credit  allowed

S. 6610--B                          5                         A. 9710--C

by  this subdivision to a taxpayer exceed two hundred and fifty thousand
dollars per year.  IF THE TAXPAYER IS A  PARTNER  IN  A  PARTNERSHIP  OR
SHAREHOLDER  OF  A NEW YORK S CORPORATION, THEN THE LIMIT IMPOSED BY THE
PRECEDING  SENTENCE  SHALL  BE  APPLIED AT THE ENTITY LEVEL, SO THAT THE
AGGREGATE CREDIT ALLOWED TO ALL THE PARTNERS  OR  SHAREHOLDERS  OF  EACH
SUCH  ENTITY  IN  THE TAXABLE YEAR DOES NOT EXCEED TWO HUNDRED AND FIFTY
THOUSAND DOLLARS.
  S 3. Paragraph 6 of subsection (nn) of section 606 of the tax law,  as
amended  by  section 1-a of part A of chapter 63 of the laws of 2005, is
amended to read as follows:
  (6) An eligible taxpayer may claim credits under this  subsection  for
four  consecutive  taxable years, except, if a taxpayer is located in an
academic incubator facility and relocates within New  York  state  to  a
nonacademic  incubator  site, then the taxpayer (i) may make a revocable
election to defer the credit provided under this subsection to the first
taxable year beginning after the taxpayer  relocates  from  an  academic
incubator  facility, and (ii) shall be eligible for such credit for five
consecutive  years.  In  no  case  shall  the  credit  allowed  by  this
subsection  to  a taxpayer exceed two hundred fifty thousand dollars per
year.  IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR SHAREHOLDER OF A
NEW YORK S CORPORATION, THEN THE LIMIT IMPOSED BY THE PRECEDING SENTENCE
SHALL BE APPLIED AT THE ENTITY  LEVEL,  SO  THAT  THE  AGGREGATE  CREDIT
ALLOWED  TO  ALL THE PARTNERS OR SHAREHOLDERS OF EACH SUCH ENTITY IN THE
TAXABLE YEAR DOES NOT EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS.
  S 4. This act shall take effect immediately and apply to taxable years
beginning on or after January 1, 2010.

                                 PART B

  Section 1. Subparagraph (E)  of  paragraph  1  of  subsection  (b)  of
section  631  of the tax law, as added by section 1 of part H of chapter
60 of the laws of 2004, is amended and a new subparagraph (F)  is  added
to read as follows:
  (E)  gains from the sale, conveyance or other disposition of shares of
stock in a cooperative housing corporation in connection with the  grant
or  transfer of a proprietary leasehold by the owner thereof and subject
to the provisions of article thirty-one of this  chapter,  whether  such
shares are held by a partnership, trust or otherwise[.]; OR
  (F)  INCOME  RECEIVED  BY  NONRESIDENTS  RELATED TO A BUSINESS, TRADE,
PROFESSION OR OCCUPATION PREVIOUSLY CARRIED ON IN THIS STATE, WHETHER OR
NOT AS AN EMPLOYEE, INCLUDING BUT  NOT  LIMITED  TO,  COVENANTS  NOT  TO
COMPETE  AND  TERMINATION  AGREEMENTS.  INCOME  RECEIVED BY NONRESIDENTS
RELATED TO  A  BUSINESS,  TRADE,  PROFESSION  OR  OCCUPATION  PREVIOUSLY
CARRIED ON PARTLY WITHIN AND PARTLY WITHOUT THE STATE SHALL BE ALLOCATED
IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTION (C) OF THIS SECTION.
  S 2. This act shall take effect immediately and apply to taxable years
on or after January 1, 2010.

                                 PART C

  Section  1.  Legislative  findings.  The  legislature finds that it is
necessary to correct a decision of the tax appeals tribunal and a deter-
mination of the division of tax appeals that erroneously overturned  the
longstanding policies of department of taxation and finance that nonres-
ident  subchapter  S shareholders who sell their interest in an S corpo-
ration pursuant to an  election  under  section  338(h)(10)  or  section

S. 6610--B                          6                         A. 9710--C

453(h)(1)(A)  of  the  Internal Revenue Code, respectively, are taxed in
accordance with that election and the transaction is treated as an asset
sale producing New York source  income.  Section  two  of  this  act  is
intended  to  clarify  the concept of federal conformity in the personal
income tax and is necessary to prevent confusion in the  preparation  of
returns,  unintended  refunds,  and protracted litigation of issues that
have been properly administered up to now.
  S 2. Paragraph 2 of subsection (a) of section 632 of the tax  law,  as
amended  by  section 65 of part A of chapter 389 of the laws of 1997, is
amended to read as follows:
  (2) In determining New York source income of a nonresident shareholder
of an S corporation where the election provided for in subsection (a) of
section six hundred sixty of this article is in effect, there  shall  be
included only the portion derived from or connected with New York sourc-
es  of  such  shareholder's  pro  rata  share  of items of S corporation
income, loss and deduction entering  into  his  federal  adjusted  gross
income,  increased  by  reductions for taxes described in paragraphs two
and three of subsection (f) of section thirteen hundred sixty-six of the
internal revenue code, as such portion shall be determined  under  regu-
lations  of  the commissioner consistent with the applicable methods and
rules for allocation under article nine-A or thirty-two of this chapter,
REGARDLESS OF WHETHER OR NOT SUCH  ITEM  OR  REDUCTION  IS  INCLUDED  IN
ENTIRE  NET  INCOME UNDER ARTICLE NINE-A OR THIRTY-TWO FOR THE TAX YEAR.
IF A NONRESIDENT IS A SHAREHOLDER IN AN S CORPORATION WHERE THE ELECTION
PROVIDED FOR IN SUBSECTION (A) OF SECTION  SIX  HUNDRED  SIXTY  OF  THIS
ARTICLE  IS IN EFFECT, AND THE S CORPORATION HAS DISTRIBUTED AN INSTALL-
MENT OBLIGATION UNDER SECTION 453(H)(1)(A) OF THE INTERNAL REVENUE CODE,
THEN ANY GAIN RECOGNIZED ON THE RECEIPT OF PAYMENTS FROM THE INSTALLMENT
OBLIGATION FOR FEDERAL INCOME TAX PURPOSES WILL BE TREATED AS  NEW  YORK
SOURCE INCOME ALLOCATED IN A MANNER CONSISTENT WITH THE APPLICABLE METH-
ODS  AND RULES FOR ALLOCATION UNDER ARTICLE NINE-A OR THIRTY-TWO OF THIS
CHAPTER IN THE YEAR THAT THE ASSETS  WERE  SOLD.  IN  ADDITION,  IF  THE
SHAREHOLDERS  OF  THE  S CORPORATION HAVE MADE AN ELECTION UNDER SECTION
338(H)(10) OF THE INTERNAL REVENUE CODE, THEN ANY GAIN RECOGNIZED ON THE
DEEMED ASSET SALE FOR FEDERAL INCOME TAX PURPOSES WILL BE TREATED AS NEW
YORK SOURCE INCOME ALLOCATED IN A MANNER CONSISTENT WITH THE  APPLICABLE
METHODS  AND  RULES FOR ALLOCATION UNDER ARTICLE NINE-A OR THIRTY-TWO OF
THIS  CHAPTER  IN  THE  YEAR  THAT  THE  SHAREHOLDER  MADE  THE  SECTION
338(H)(10) ELECTION. FOR PURPOSES OF A SECTION 338(H)(10) ELECTION, WHEN
A  NONRESIDENT  SHAREHOLDER  EXCHANGES HIS OR HER S CORPORATION STOCK AS
PART OF THE DEEMED LIQUIDATION, ANY GAIN OR  LOSS  RECOGNIZED  SHALL  BE
TREATED  AS THE DISPOSITION OF AN INTANGIBLE ASSET AND WILL NOT INCREASE
OR OFFSET ANY GAIN RECOGNIZED ON THE DEEMED ASSETS SALE AS A  RESULT  OF
THE SECTION 338(H)(10) ELECTION.
  S  3.  Paragraph  1 of subsection (b) of section 631 of the tax law is
amended by adding a new subparagraph (E-1) to read as follows:
  (E-1) IN THE CASE OF AN S CORPORATION FOR  WHICH  AN  ELECTION  IS  IN
EFFECT  PURSUANT  TO SUBSECTION (A) OF SECTION SIX HUNDRED SIXTY OF THIS
ARTICLE THAT TERMINATES ITS TAXABLE STATUS IN NEW YORK,  ANY  INCOME  OR
GAIN  RECOGNIZED  ON  THE  RECEIPT  OF PAYMENTS FROM AN INSTALLMENT SALE
CONTRACT ENTERED INTO WHEN THE S CORPORATION WAS SUBJECT TO TAX  IN  NEW
YORK,  ALLOCATED  IN A MANNER CONSISTENT WITH THE APPLICABLE METHODS AND
RULES FOR ALLOCATION UNDER ARTICLE NINE-A OR THIRTY-TWO OF THIS CHAPTER,
IN THE YEAR THAT THE S CORPORATION SOLD ITS ASSETS.
  S 4. This act shall take effect immediately;  provided  however,  that
section two of this act shall apply to all tax years for which the stat-

S. 6610--B                          7                         A. 9710--C

ute  of limitations for seeking a refund or assessing additional tax are
still open, and section three of this act shall apply to  taxable  years
beginning on or after January 1, 2010.

                                 PART D

  Intentionally omitted.

                                 PART E

  Section 1. The tax law is amended by adding a new section 1703 to read
as follows:
  S 1703. INFORMATION RETURNS RELATING TO PAYMENTS MADE IN SETTLEMENT OF
PAYMENT  CARD AND THIRD PARTY NETWORK TRANSACTIONS. 1. (A) EVERY PAYMENT
SETTLEMENT  ENTITY,  THIRD  PARTY  SETTLEMENT  ORGANIZATION,  ELECTRONIC
PAYMENT  FACILITATOR  OR OTHER THIRD PARTY ACTING ON BEHALF OF A PAYMENT
SETTLEMENT ENTITY, ALL AS DEFINED  IN  SECTION  6050W  OF  THE  INTERNAL
REVENUE CODE AND REFERRED TO HEREIN AS "A REPORTING ENTITY," REQUIRED TO
FILE  INFORMATION  RETURNS PURSUANT TO THAT SECTION SHALL, WITHIN THIRTY
DAYS OF THE FILING THEREOF, FILE WITH THE DEPARTMENT IN  SUCH  FORM  AND
MANNER  AS  PRESCRIBED BY THE COMMISSIONER EITHER (I) A DUPLICATE OF ALL
SUCH INFORMATION RETURNS OR (II) A DUPLICATE OF SUCH INFORMATION RETURNS
RELATED TO PARTICIPATING PAYEES, AS DEFINED  IN  SECTION  6050W  OF  THE
INTERNAL  REVENUE  CODE, WITH A NEW YORK STATE ADDRESS OR NEW YORK STATE
TAXPAYERS. THE COMMISSIONER MAY REQUIRE THAT SUCH RETURNS BE FILED ELEC-
TRONICALLY.
  (B) TO FACILITATE ACCURATE REPORTING BY THE ENTITIES REQUIRED TO  FILE
INFORMATION  RETURNS  PURSUANT  TO  THIS  SECTION,  THE DEPARTMENT SHALL
PROVIDE A LIST OR DATABASE OF NEW YORK STATE  TAXPAYERS  NO  LATER  THAN
FORTY-FIVE  DAYS  PRIOR  TO  THE INFORMATION REPORTING DEADLINE, IN SUCH
FORM AND MANNER AS  PRESCRIBED  BY  THE  COMMISSIONER.  THE  INFORMATION
INCLUDED IN SUCH LIST OR DATABASE SHALL NOT BE USED BY A REPORTING ENTI-
TY  FOR  ANY PURPOSE OTHER THAN PRODUCING AND FILING INFORMATION RETURNS
PURSUANT TO THIS SECTION.
  (C) ANY INFORMATION RECEIVED  BY  THE  DEPARTMENT  ON  AN  INFORMATION
RETURN  FILED  PURSUANT  TO THIS SECTION, CONCERNING A PERSON WHO IS NOT
SUBJECT TO TAX IN NEW YORK, OR IS NOT SUBJECT TO ANY REQUIREMENT IMPOSED
BY OR PURSUANT TO THE AUTHORITY OF THIS CHAPTER, MAY NOT BE USED BY  THE
DEPARTMENT. THE DEPARTMENT SHALL NOT REDISCLOSE ANY INFORMATION RECEIVED
ON AN INFORMATION RETURN FILED PURSUANT TO THIS SECTION.
  2.  (A)  ANY  REPORTING  ENTITY  FAILING TO FILE AN INFORMATION RETURN
REQUIRED PURSUANT TO SUBDIVISION ONE OF THIS  SECTION  WITHIN  THE  TIME
PRESCRIBED  WILL BE SUBJECT TO A PENALTY OF FIFTY DOLLARS FOR EACH FAIL-
URE, IF FAILURE IS FOR NOT MORE THAN ONE MONTH, WITH AN ADDITIONAL FIFTY
DOLLARS FOR EACH MONTH OR FRACTION THEREOF  DURING  WHICH  EACH  FAILURE
CONTINUES.  HOWEVER,  THE TOTAL AMOUNT OF PENALTY IMPOSED ON A REPORTING
ENTITY MAY NOT EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS ANNUALLY.
  (B) THE COMMISSIONER MAY WAIVE ALL  OR  ANY  PORTION  OF  ANY  PENALTY
IMPOSED  BY  THIS  SUBDIVISION  WITH RESPECT TO ANY VIOLATION IF (I) THE
COMMISSIONER DETERMINES THAT THE FAILURE TO TIMELY FILE  A  RETURN,  WAS
DUE TO REASONABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT, OR (II) RESCIND-
ING  THE  PENALTY WOULD PROMOTE COMPLIANCE WITH THE REQUIREMENTS OF THIS
CHAPTER AND EFFECTIVE TAX ADMINISTRATION.
  S 2. This act shall take effect immediately.

                                 PART F

S. 6610--B                          8                         A. 9710--C

  Intentionally omitted.

                                 PART G

  Section  1.  Paragraph  1  of subdivision (e) of section 29 of the tax
law, as added by section 1 of part UU-1 of chapter 57  of  the  laws  of
2008, is amended to read as follows:
  (1)  If a tax return preparer is required to file authorized tax docu-
ments electronically pursuant to subdivision (b) of  this  section,  and
that  preparer  fails  to  file one or more of those documents electron-
ically, then that preparer will be subject to a penalty of fifty dollars
for each failure to electronically  file  an  authorized  tax  document,
unless  it  is shown that the failure is due to reasonable cause and not
due to willful neglect. [For  purposes  of  this  paragraph,  reasonable
cause shall include, but not be limited to, a taxpayer's election not to
electronically file the authorized tax document.]
  S  2.  The  tax  law  is amended by adding a new section 33 to read as
follows:
  S 33.  CORRECTION PERIODS FOR ELECTRONIC TAX DOCUMENTS  AND  PAYMENTS.
(A) FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS HAVE THE SPECIFIED
MEANINGS:
  (1)  "ELECTRONIC  FUNDS  WITHDRAWAL"  MEANS  THE  PROCESS BY WHICH THE
DEPARTMENT, WITH A TAXPAYER'S PERMISSION, ORIGINATES AN ELECTRONIC ORDER
FROM ITS BANK TO THE TAXPAYER'S BANK TO WITHDRAW FUNDS FROM THE  TAXPAY-
ER'S  BANK  ACCOUNT SO THAT THE TAXPAYER MAY PAY A TAX LIABILITY ASSOCI-
ATED WITH A TAX DOCUMENT.
  (2) "ELECTRONIC POSTMARK" MEANS A RECORD OF THE DATE AND  TIME  (IN  A
PARTICULAR TIME ZONE) THAT AN AUTHORIZED ELECTRONIC TRANSMITTER RECEIVES
THE  TRANSMISSION  OF  A TAXPAYER'S ELECTRONICALLY FILED TAX DOCUMENT ON
ITS HOST SYSTEM.
  (3) "ELECTRONIC TRANSMITTER" MEANS A PERSON OR ENTITY THAT IS  AUTHOR-
IZED  TO  SUBMIT  ELECTRONIC TAX DOCUMENTS DIRECTLY TO THE DEPARTMENT OR
DIRECTLY TO THE INTERNAL REVENUE SERVICE FOR FORWARDING TO  THE  DEPART-
MENT.
  (4)  "REJECT"  OR  "REJECTED"  MEANS  THAT AN ELECTRONICALLY FILED TAX
DOCUMENT OR AN AUTHORIZATION FOR AN ELECTRONIC FUNDS WITHDRAWAL  IS  NOT
ACCEPTED FOR PROCESSING.
  (5)  "SUBMIT" OR "SUBMITTED" MEANS THE DATE OF THE ELECTRONIC POSTMARK
ASSIGNED BY AN ELECTRONIC TRANSMITTER TO  AN  ELECTRONICALLY  FILED  TAX
DOCUMENT  OR  AUTHORIZATION FOR AN ELECTRONIC FUNDS WITHDRAWAL. HOWEVER,
IF AN ELECTRONIC TRANSMITTER DOES NOT  ASSIGN  AN  ELECTRONIC  POSTMARK,
THEN  AN ELECTRONICALLY FILED TAX DOCUMENT OR AUTHORIZATION FOR AN ELEC-
TRONIC FUNDS WITHDRAWAL SHALL BE DEEMED SUBMITTED ON THE EARLIER OF  THE
DATE  THE INTERNAL REVENUE SERVICE RECEIVES THE ELECTRONICALLY FILED TAX
DOCUMENT OR AUTHORIZATION FOR AN ELECTRONIC  FUNDS  WITHDRAWAL,  OR  THE
DATE  THE  DEPARTMENT  RECEIVES THE ELECTRONICALLY FILED TAX DOCUMENT OR
AUTHORIZATION FOR AN ELECTRONIC FUNDS WITHDRAWAL. IN ANY OF  THE  AFORE-
MENTIONED  CASES,  IF  THE  TAXPAYER  CAN  ESTABLISH  THAT  THE  TIME OF
SUBMISSION, ADJUSTED FOR THE TAXPAYER'S TIME ZONE, WAS TIMELY, THE  TIME
OF SUBMISSION SHALL BE BASED ON THE TAXPAYER'S TIME ZONE.
  (6)  "TAX"  MEANS ANY TAX, FEE, SPECIAL ASSESSMENT OR OTHER IMPOSITION
ADMINISTERED BY THE COMMISSIONER.
  (7) "TAX DOCUMENT" MEANS ANY RETURN, REPORT OR OTHER DOCUMENT RELATING
TO A TAX.
  (B) IF A TAX DOCUMENT IS REQUIRED OR PERMITTED TO BE  FILED  WITH  THE
DEPARTMENT  ELECTRONICALLY  (WHETHER DIRECTLY, DIRECTLY THROUGH A RETURN

S. 6610--B                          9                         A. 9710--C

TRANSMITTER OR THROUGH THE INTERNAL REVENUE SERVICE), THE  TAX  DOCUMENT
IS  SUBMITTED ELECTRONICALLY ON OR BEFORE THE DUE DATE FOR SUCH DOCUMENT
(INCLUDING ANY EXTENSION OF TIME),  AND  THE  ELECTRONICALLY  FILED  TAX
DOCUMENT IS REJECTED, THEN THE COMMISSIONER MAY, BY INSTRUCTION, PROVIDE
FOR  A  REASONABLE  PERIOD  OF TIME DURING WHICH THE TAX DOCUMENT MAY BE
CORRECTED AND RE-SUBMITTED. IF THE CORRECTED TAX DOCUMENT IS  RE-SUBMIT-
TED  ON  OR  BEFORE THE EXPIRATION DATE OF THE EXTENDED TIME PERIOD, AND
SUCH DOCUMENT IS ACCEPTED BY THE DEPARTMENT  FOR  PROCESSING,  THEN  THE
RE-SUBMITTED TAX DOCUMENT SHALL BE DEEMED TO HAVE BEEN TIMELY FILED EVEN
THOUGH THE DEPARTMENT RECEIVES IT AFTER THE APPLICABLE DUE DATE (INCLUD-
ING ANY EXTENSION OF TIME).
  (C) (1) IF A TAXPAYER HAS SUBMITTED AN AUTHORIZATION FOR AN ELECTRONIC
FUNDS  WITHDRAWAL  ON  OR BEFORE THE DUE DATE FOR PAYMENT (INCLUDING ANY
EXTENSION OF TIME), AND SUCH AUTHORIZATION IS REJECTED  BY  THE  DEPART-
MENT,  THEN  THE COMMISSIONER MAY, BY INSTRUCTION, PROVIDE FOR A REASON-
ABLE PERIOD OF TIME, COMMENCING FROM THE  DATE  OF  REJECTION,  FOR  THE
TAXPAYER  TO  RE-SUBMIT THE AUTHORIZATION FOR THE ELECTRONIC FUNDS WITH-
DRAWAL. IF THE AUTHORIZATION FOR  THE  ELECTRONIC  FUNDS  WITHDRAWAL  IS
RE-SUBMITTED ON OR BEFORE THE EXPIRATION DATE OF THE EXTENDED TIME PERI-
OD,  THEN  THE  ELECTRONIC FUNDS WITHDRAWAL SHALL BE DEEMED TO HAVE BEEN
TIMELY PAID EVEN THOUGH THE DEPARTMENT RECEIVES IT AFTER THE  APPLICABLE
DUE DATE (INCLUDING ANY EXTENSION OF TIME).
  (2) ANY REASONABLE PERIOD OF TIME PROVIDED FOR BY THE COMMISSIONER FOR
RE-SUBMISSION OF AN AUTHORIZATION FOR AN ELECTRONIC FUNDS WITHDRAWAL MAY
DIFFER  FROM  THE  REASONABLE  TIME  PERIOD, IF ANY, PROVIDED FOR BY THE
COMMISSIONER WITH RESPECT TO THE ELECTRONICALLY FILED TAX DOCUMENT  WITH
WHICH THE TAXPAYER'S ELECTRONIC FUNDS WITHDRAWAL IS ASSOCIATED.
  (3)  IN LIEU OF RE-SUBMITTING AN AUTHORIZATION FOR AN ELECTRONIC FUNDS
WITHDRAWAL, THE COMMISSIONER MAY PERMIT A TAXPAYER  TO  INSTEAD  PAY  BY
SUBSTITUTE  MEANS, AS DEFINED BY INSTRUCTION. ANY SUCH INSTRUCTION SHALL
ADDRESS THE TIMELINESS OF PAYMENT BY SUBSTITUTE MEANS.
  (D) THE PROVISIONS OF  THIS  SECTION  SHALL  NOT  APPLY  TO  TAXPAYERS
PARTICIPATING  IN  THE  ELECTRONIC FUNDS TRANSFER PROGRAMS PRESCRIBED BY
SECTIONS NINE AND TEN OF THIS ARTICLE.
  S 3. The tax law is amended by adding a new  section  34  to  read  as
follows:
  S 34.  TAX RETURN PREPARERS AND SOFTWARE COMPANIES NOT TO CHARGE SEPA-
RATELY  FOR  NEW YORK E-FILE SERVICES. (A) FOR PURPOSES OF THIS SECTION,
THE FOLLOWING TERMS HAVE THE SPECIFIED MEANINGS:
  (1) "AUTHORIZED TAX DOCUMENT" MEANS A TAX DOCUMENT WHICH  THE  COMMIS-
SIONER HAS AUTHORIZED TO BE FILED ELECTRONICALLY.
  (2) "ELECTRONIC" MEANS COMPUTER TECHNOLOGY.
  (3) "SOFTWARE COMPANY" MEANS A DEVELOPER OF TAX SOFTWARE.
  (4)  "TAX"  MEANS  ANY TAX OR OTHER MATTER ADMINISTERED BY THE COMMIS-
SIONER PURSUANT TO THIS CHAPTER OR ANY OTHER PROVISION OF LAW.
  (5) "TAX DOCUMENT" MEANS A RETURN, REPORT OR ANY OTHER DOCUMENT RELAT-
ING TO A TAX OR OTHER MATTER ADMINISTERED BY THE COMMISSIONER.
  (6) "TAX RETURN PREPARER" MEANS ANY PERSON WHO  PREPARES  FOR  COMPEN-
SATION,  OR  WHO  EMPLOYS  OR ENGAGES ONE OR MORE PERSONS TO PREPARE FOR
COMPENSATION, ANY AUTHORIZED TAX DOCUMENT. FOR PURPOSES OF THIS SECTION,
THE TERM "TAX RETURN PREPARER" ALSO INCLUDES A PAYROLL SERVICE.
  (7) "TAX SOFTWARE" MEANS ANY COMPUTER SOFTWARE  PROGRAM  INTENDED  FOR
TAX  RETURN PREPARATION PURPOSES. FOR PURPOSES OF THIS SECTION, THE TERM
"TAX SOFTWARE" INCLUDES, BUT IS NOT LIMITED TO, AN  OFF-THE-SHELF  SOFT-
WARE PROGRAM LOADED ONTO A TAX RETURN PREPARER'S OR TAXPAYER'S COMPUTER,
OR AN ONLINE TAX PREPARATION APPLICATION.

S. 6610--B                         10                         A. 9710--C

  (B)  IT  SHALL  BE  UNLAWFUL  FOR  A TAX RETURN PREPARER OR A SOFTWARE
COMPANY TO CHARGE A SEPARATE FEE FOR THE ELECTRONIC FILING OF AUTHORIZED
TAX DOCUMENTS. IT SHALL ALSO BE UNLAWFUL FOR A SOFTWARE COMPANY TO OFFER
A VERSION OF ITS TAX SOFTWARE THAT CHARGES A SEPARATE FEE FOR THE  ELEC-
TRONIC  FILING  OF  AUTHORIZED TAX DOCUMENTS AND ONE VERSION OF THE SAME
TAX SOFTWARE THAT DOES NOT.
  (C) ANY TAX RETURN PREPARER OR SOFTWARE COMPANY VIOLATING THIS SECTION
WILL BE LIABLE FOR A CIVIL PENALTY OF FIVE HUNDRED DOLLARS FOR THE FIRST
VIOLATION AND ONE THOUSAND DOLLARS FOR EACH  SUCCEEDING  VIOLATION.  THE
CIVIL PENALTIES IMPOSED BY THIS SECTION SHALL BE PAID TO THE COMMISSION-
ER  UPON  NOTICE AND DEMAND, AND WILL BE ASSESSED, COLLECTED AND PAID IN
THE SAME MANNER AS TAXES UNDER ARTICLE TWENTY-SEVEN OF THIS CHAPTER.
  S 4. Paragraph 5 of subsection (u) of section 685 of the tax  law,  as
added  by  section  2  of  part  Q of chapter 61 of the laws of 2005, is
amended to read as follows:
  (5) Failure to electronically  file.  If  a  tax  return  preparer  is
required  to  file  returns  electronically pursuant to paragraph ten of
subsection (g) of section six hundred fifty-eight of this  article,  and
such  preparer fails to file one or more of such returns electronically,
then such preparer shall be subject to a penalty of  fifty  dollars  for
each  such  failure  to electronically file a return, unless it is shown
that such failure is due to reasonable cause  and  not  due  to  willful
neglect.    [For  purposes  of  this  paragraph,  reasonable cause shall
include, but not be limited to, a taxpayer's election not  to  electron-
ically file his or her return.]
  S 5. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis-
trative code of the city of New York, as added by section 4 of part Q of
chapter 61 of the laws of 2005, is amended to read as follows:
  (5)  Failure  to  electronically  file.  If  a  tax return preparer is
required to file returns electronically pursuant  to  paragraph  ten  of
subdivision  (g) of section 11-1758, and such preparer fails to file one
or more of such returns electronically,  then  such  preparer  shall  be
subject to a penalty of fifty dollars for each such failure to electron-
ically  file  a  return,  unless it is shown that such failure is due to
reasonable cause and not due to willful neglect. [For purposes  of  this
paragraph,  reasonable  cause  shall  include,  but not be limited to, a
taxpayer's election not to electronically file his or her return.]
  S 6. This act shall take effect immediately, provided,  however,  that
sections  one,  four and five of this act shall apply to tax returns and
other tax documents required to be filed electronically  by  tax  return
preparers  on  or  after  December 31, 2010, and section two of this act
shall apply to electronic returns and payments made for tax years begin-
ning after December 31, 2010.

                                 PART H

  Intentionally omitted.

                                 PART I

  Intentionally omitted.

                                 PART J

  Intentionally omitted.

S. 6610--B                         11                         A. 9710--C

                                 PART K

  Section  1.  Section  4  of part C of chapter 383 of the laws of 2001,
amending the tax law and other laws relating to authorizing the division
of the lottery to conduct a pilot program  involving  the  operation  of
video lottery terminals at certain racetracks, as amended by chapter 140
of the laws of 2008, is amended to read as follows:
  S  4. This act shall take effect immediately[; provided, however, that
the provisions of this act shall expire and be deemed repealed  December
31, 2033].
  S  2. Section 4 of part C of chapter 383 of the laws of 2001, amending
the tax law and other laws relating to authorizing the division  of  the
lottery  to  conduct  a  pilot  program involving the operation of video
lottery terminals at certain racetracks, as amended by  chapter  286  of
the laws of 2008, is amended to read as follows:
  S  4. This act shall take effect immediately[; provided, however, that
the provisions of this act shall expire and be deemed repealed  December
31, 2050].
  S  3.  Section  13  of  chapter  140  of the laws of 2008 amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
thoroughbred racing is REPEALED.
  S 4. Section 5 of chapter 286 of the laws of 2008 amending the tax law
relating to annual capital improvement credits for video lottery  gaming
operators is REPEALED.
  S  5.  Subdivision  b  of section 1617-a of the tax law, as amended by
section 2 of part Z3 of chapter 62 of the laws of 2003,  is  amended  to
read as follows:
  b.  Video  lottery  gaming  shall  only  be permitted for no more than
[sixteen] TWENTY consecutive hours per day and  on  no  day  shall  such
operation be conducted past [2:00] 4:00 a.m.
  S 6. Subparagraph (ii) of paragraph 1 of subdivision b of section 1612
of the tax law, as amended by section 1 of part O-1 of chapter 57 of the
laws  of  2009  and  clause  (G)  of subparagraph (ii) of paragraph 1 as
amended by chapter 342 of the laws  of  2009,  is  amended  to  read  as
follows:
  (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]  THIRTY-FIVE  percent  for  the  first  fifty
million  dollars  annually,  [twenty-nine]  TWENTY-EIGHT percent for the
next hundred million  dollars  annually,  and  [twenty-six]  TWENTY-FIVE
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] THIRTY-ONE 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 thirty-two percent ninety days following  the  completion  of
the successful restructuring. A successful restructuring is defined as a

S. 6610--B                         12                         A. 9710--C

restructuring  of  the  existing  debt  obligations of such vendor track
located in Westchester 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]  THIRTY 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].
  Notwithstanding the foregoing, not later than April first,  two  thou-
sand twelve, the vendor fee shall become [thirty-two] THIRTY-ONE 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] THIRTY-NINE percent for the first fifty million dollars  annual-
ly,  [twenty-nine]  TWENTY-EIGHT  percent  for  the next hundred million
dollars annually, and [twenty-six] TWENTY-FIVE percent thereafter of the
total revenue wagered at the vendor track after payout for prizes pursu-
ant 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 at a rate of [forty-two] FORTY-ONE 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]  FORTY-ONE  percent  of  the
total revenue wagered after payout for prizes pursuant to this chapter;
  (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] FORTY-ONE percent of the total
revenue wagered at the vendor track after payout for prizes pursuant  to
this  chapter,  after which time such rate shall be as for all tracks in
clause (C) of this subparagraph.
  (G) notwithstanding [any other provisions  of  this  section]  CLAUSES
(A),  (B), (C), (D), (E) AND (F) OF THIS SUBPARAGRAPH, when no more than
one vendor track located in the town of Thompson in Sullivan  county  at
the  site  of  the  former  Concord  Resort at which a qualified capital
investment has been made and  no  fewer  than  one  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 credit of  the  state  lottery  fund  created  by
section  ninety-two-c  of  the state finance law] THE VENDOR'S FEE SHALL
EQUAL THE TOTAL REVENUE WAGERED AT THE  VENDOR  TRACK  AFTER  PAYOUT  OF
PRIZES  PURSUANT TO THIS SUBDIVISION REDUCED BY the greater of (i) twen-

S. 6610--B                         13                         A. 9710--C

ty-five percent of total revenue after  payout  for  prizes  for  "video
lottery  games"  or  (ii) for the first eight years of operation thirty-
eight million dollars, and beginning 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, adminis-
tration and procurement of the video lottery terminal  operation  at  no
more  than  one vendor track located in the town of Thompson in Sullivan
county at the site of the former Concord Resort, 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] VENDOR FEE IS CALCULATED 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] VENDOR'S
FEE SHALL BE FURTHER REDUCED BY 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]  REDUCTION  exceed
five million dollars.
  [The  balance shall be paid as a vendor's fee to the track operator of
no more than one vendor track located in the town of Thompson in  Sulli-
van  county  at  the  site of the former Concord Resort for serving as a
lottery agent under this chapter.]
  Provided, however, that in the case of no more than one  vendor  track
located  in  the  town of Thompson in Sullivan county at the site of the
former Concord Resort with a qualified capital investment, and one thou-
sand full-time, permanent employees [as  of  July  first,  two  thousand
eleven]  if  at  any time after three years of opening operations of the
licensed video gaming facility or  licensed  vendor  track,  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  six hundred million 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  population  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, lodg-
ing,  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 video gaming facility,
vendor track or related and adjacent facilities for a minimum  of  thir-
ty-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 video gaming facility, vendor track  or
related  and  adjacent  facilities for a combined 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.

S. 6610--B                         14                         A. 9710--C

  For the purpose of this section "employment goal" shall mean one thou-
sand five hundred full-time permanent employees  after  three  years  of
opening  operations  of  the  licensed video gaming facility or licensed
vendor track.
  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) one hundred percent of the  recapture  amount  if  the  employment
shortfall  is  greater  than  sixty-six  and  two-thirds  percent of the
employment goal;
  (ii) seventy-five percent of the recapture amount  if  the  employment
shortfall  is  greater  than  thirty-three  and one-third percent of the
employment goal;
  (iii) forty-nine and one-half percent of the recapture amount  if  the
employment  shortfall  is  greater than thirty percent of the employment
goal;
  (iv) twenty-two percent of the  recapture  amount  if  the  employment
shortfall is greater than twenty percent of the employment goal;
  (v) eleven 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-

S. 6610--B                         15                         A. 9710--C

sand  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 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 subparagraph be eligible 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 the
full depreciation of the capital improvement in accordance with general-
ly 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
  S 7. This act shall take effect immediately.

                                 PART L

  Intentionally omitted.

                                 PART M

  Section 1. Section 2 of the tax law  is  amended  by  adding  two  new
subdivisions 12 and 13 to read as follows:
  12.  AS USED IN THIS CHAPTER, A "STATE RECOGNIZED MARRIAGE" SHALL MEAN
A MARRIAGE RECOGNIZED BY  NEW  YORK  STATE  LAW,  INCLUDING  A  MARRIAGE
OUTSIDE THE STATE RECOGNIZED UNDER PRINCIPLES OF COMITY.
  13.  AS  USED IN THIS CHAPTER, "MARRIED," "SPOUSE," "HUSBAND," "WIFE,"
"WIDOW," AND OTHER SIMILAR TERMS ENCOMPASS ANY INDIVIDUALS  IN  A  STATE
RECOGNIZED   MARRIAGE,   NOTWITHSTANDING  THE  TREATMENT  AFFORDED  SUCH
MARRIAGE UNDER THE LAWS OF THE UNITED STATES.
  S 2. The tax law is amended by adding a new  section  31  to  read  as
follows:
  S  31.  TREATMENT OF INDIVIDUALS IN ANY STATE RECOGNIZED MARRIAGE. (A)
FOR PURPOSES OF  THIS  CHAPTER,  INDIVIDUALS  IN  ANY  STATE  RECOGNIZED
MARRIAGE  SHALL  BE  TREATED  AS MARRIED, AND THEIR STATUS AS "HUSBAND,"
"WIFE," "SPOUSE," "WIDOW"  OR  OTHER  SIMILAR  TERM  INDICATING  MARITAL
STATUS AS USED IN THIS CHAPTER SHALL BE THAT OF SIMILARLY-SITUATED INDI-
VIDUALS  IN  ANY  OTHER  MARRIAGE RECOGNIZED UNDER FEDERAL AND STATE TAX
LAW, NOTWITHSTANDING THE TREATMENT AFFORDED SUCH INDIVIDUALS  UNDER  THE
LAWS OF THE UNITED STATES.
  (B) TAX LIABILITY UNDER ARTICLES TWENTY-TWO, TWENTY-SIX, TWENTY-SIX-B,
THIRTY, THIRTY-A, AND THIRTY-B OF THIS CHAPTER SHALL BE COMPUTED FOR ANY
STATE RECOGNIZED MARRIAGE IN THE SAME WAY LIABILITY WOULD BE COMPUTED IN
ANY OTHER MARRIAGE RECOGNIZED UNDER FEDERAL AND STATE TAX LAW.
  S 3. Subsection (b) of section 607 of the tax law, as amended by chap-
ter 760 of the laws of 1992, is amended to read as follows:
  (b)  Marital  or other status. An individual's marital or other status
under section six hundred one, subsection (b) of section six hundred six
and section six hundred fourteen shall be the same as his OR HER marital

S. 6610--B                         16                         A. 9710--C

or other status for purposes  of  establishing  the  applicable  federal
income tax rates; PROVIDED HOWEVER, THAT INDIVIDUALS IN ANY STATE RECOG-
NIZED  MARRIAGE  SHALL  BE  TREATED AS MARRIED AND AS "HUSBAND," "WIFE,"
"SPOUSE," "WIDOW" OR OTHER SIMILAR TERM USED IN THIS ARTICLE TO INDICATE
MARITAL STATUS TO THE SAME EXTENT AND IN THE SAME WAY AS ARE INDIVIDUALS
IN ANY OTHER LEGALLY PERFORMED MARRIAGE. IN APPLYING RELEVANT PROVISIONS
OF  THE  LAWS OF THE UNITED STATES TO THIS ARTICLE, THE TERMS "MARRIED,"
"HUSBAND," "WIFE," "SPOUSE," "WIDOW" OR OTHER  SIMILAR  TERM  INDICATING
MARITAL  STATUS  AS  USED IN THIS ARTICLE SHALL INCLUDE ANY STATE RECOG-
NIZED MARRIAGE, NOTWITHSTANDING THE TREATMENT AFFORDED SUCH  INDIVIDUALS
UNDER THE LAWS OF THE UNITED STATES.
  S 4. Subsection (b) of section 651 of the tax law is amended by adding
a new paragraph 8 to read as follows:
  (8) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, AN INDIVIDUAL
IN  A STATE RECOGNIZED MARRIAGE NOT RECOGNIZED BY FEDERAL LAW SHALL FILE
A STATE RETURN USING THE SAME FILING STATUS THAT WOULD HAVE BEEN  AVAIL-
ABLE HAD SUCH MARRIAGE BEEN RECOGNIZED BY FEDERAL LAW.
  S  5.  Subsection  (a)  of  section  951 of the tax law, as amended by
section 1 of part A of chapter 407 of the laws of 1999,  is  amended  to
read as follows:
  (a) Dates. For purposes of this article, any reference to the internal
revenue code means the United States Internal Revenue Code of 1986, with
all amendments enacted on or before July twenty-second, nineteen hundred
ninety-eight,  and, unless specifically provided otherwise in this arti-
cle, any reference to December thirty-first, nineteen  hundred  seventy-
six  or  January  first, nineteen hundred seventy-seven contained in the
provisions of such code which are applicable to the determination of the
tax imposed by this article shall be read as a reference to June thirti-
eth, nineteen hundred seventy-eight  or  July  first,  nineteen  hundred
seventy-eight,  respectively. Notwithstanding the foregoing, the unified
credit against the estate tax provided in section two  thousand  ten  of
the  internal  revenue  code shall, for purposes of this article, be the
amount allowed by such section  under  the  applicable  federal  law  in
effect on the decedent's date of death. Provided, however, the amount of
such  credit allowable for purposes of this article shall not exceed the
amount allowable as if the federal unified credit did not exceed the tax
due under section two thousand one of the internal  revenue  code  on  a
federal  taxable  estate of one million dollars.  PROVIDED, FURTHER, ANY
ELECTION TO TAKE A QUALIFIED TERMINABLE INTEREST PROPERTY DEDUCTION MADE
ON THE RETURN FILED UNDER THIS  ARTICLE  SHALL  BE  TREATED  AS  IF  THE
ELECTION HAD BEEN MADE ON THE FEDERAL ESTATE TAX RETURN.
  S  6. Section 1-112 of the administrative code of the city of New York
is amended by adding a new subdivision 22 to read as follows:
  22. FOR PURPOSES OF CHAPTER SEVENTEEN OF TITLE ELEVEN  OF  THIS  CODE,
"MARRIED," "SPOUSE," "HUSBAND," "WIFE," "WIDOW," AND OTHER SIMILAR TERMS
ENCOMPASS  ANY  STATE  RECOGNIZED MARRIAGE NOTWITHSTANDING THE TREATMENT
AFFORDED SUCH INDIVIDUALS UNDER THE LAWS OF THE UNITED STATES.
  S 7. Subdivision (b) of section 11-1707 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:
  (b) Marital or other status. An individual's marital or  other  status
under  section  11-1701  and section 11-1714 shall be the same as his OR
HER marital or other status for purposes of establishing the  applicable
federal  income  tax  rates;  PROVIDED  HOWEVER, THAT INDIVIDUALS IN ANY
STATE RECOGNIZED MARRIAGE SHALL BE TREATED AS MARRIED AND AS  "HUSBAND,"
"WIFE,"  "SPOUSE,"  "WIDOW"  OR  OTHER  SIMILAR  TERM INDICATING MARITAL

S. 6610--B                         17                         A. 9710--C

STATUS AS USED IN THIS CHAPTER TO THE SAME EXTENT AND IN THE SAME WAY AS
IN ANY OTHER MARRIAGE RECOGNIZED UNDER FEDERAL AND STATE TAX  LAW.    IN
APPLYING  RELEVANT  PROVISIONS  OF THE LAWS OF THE UNITED STATES TO THIS
CHAPTER,  THE  TERMS "MARRIED," "HUSBAND," "WIFE," "SPOUSE," "WIDOW" AND
OTHER SIMILAR TERMS INDICATING MARITAL STATUS AS USED  IN  THIS  CHAPTER
SHALL  INCLUDE  INDIVIDUALS  IN  ANY STATE RECOGNIZED MARRIAGE, NOTWITH-
STANDING THE TREATMENT AFFORDED SUCH INDIVIDUALS UNDER THE LAWS  OF  THE
UNITED STATES.
  S  8.  This  act shall take effect immediately; provided however, that
sections three, four, six and seven of this act shall apply  to  taxable
years beginning on or after January 1, 2010.

                                 PART N

  Section  1.  Clause (I) of subparagraph (i) of paragraph 8 of subdivi-
sion (b) of section 1101 of the tax law, as added by section 1  of  part
P-1 of chapter 57 of the laws of 2009, is amended to read as follows:
  (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
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.
NOTWITHSTANDING  THE  PROVISIONS  OF  THIS CLAUSE, THE ACTIVITIES IN THE
STATE OF AN AFFILIATED PERSON IN PROVIDING ACCOUNTING OR LEGAL  SERVICES
OR  ADVICE  TO  A  SELLER,  OR  IN DIRECTING THE ACTIVITIES OF A SELLER,
INCLUDING, BUT NOT LIMITED TO,  MAKING  DECISIONS  ABOUT  (A)  STRATEGIC
PLANNING,  (B) MARKETING, (C) INVENTORY, (D) STAFFING, (E) DISTRIBUTION,
OR (F) CASH MANAGEMENT, WILL NOT RESULT IN MAKING THE  SELLER  A  VENDOR
UNDER THIS PARAGRAPH.
  S  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after June 1, 2009  and  shall
apply  to  sales made or uses occurring on or after such date in accord-
ance with the applicable transitional provisions of  sections  1106  and
1217 of the tax law.

                                 PART O

  Intentionally omitted.

                                 PART P

  Section  1.  Subdivision 4 of section 22 of the public housing law, as
amended by section 1 of part J-1 of chapter 57 of the laws of  2009,  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-four] TWENTY-EIGHT million dollars. The
limitation provided by this subdivision applies only  to  allocation  of
the  aggregate dollar amount of credit by the commissioner, and does not

S. 6610--B                         18                         A. 9710--C

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. This act shall take effect immediately.

                                 PART Q

  Section 1. Subdivision (d) of 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, as added by section 2 of part Y-1 of  chapter  57  of
the laws of 2009, is amended to read as follows:
  (d) ADDITIONAL POOL 1 - 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 gover-
nor's office for motion picture and television development among taxpay-
ers in accordance with subdivision (a) of this section.
  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 (e) to read as follows:
  (E) ADDITIONAL POOL 2 - THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED IN
SUBDIVISION (A) OF THIS SECTION SHALL BE INCREASED BY AN ADDITIONAL $420
MILLION  IN  2010,  $420  MILLION  IN  2011,  $420 MILLION IN 2012, $420
MILLION IN 2013 AND $420 MILLION IN 2014 PROVIDED HOWEVER, $7 MILLION OF
THE ANNUAL ALLOCATION SHALL BE AVAILABLE FOR THE EMPIRE STATE FILM  POST
PRODUCTION  CREDIT  PURSUANT  TO  SECTION 31 OF THE TAX LAW.  THIS ADDI-
TIONAL 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.  THE  GOVERNOR'S  OFFICE  FOR  MOTION
PICTURE  AND TELEVISION DEVELOPMENT MUST NOTIFY TAXPAYERS OF THEIR ALLO-
CATION YEAR AND INCLUDE THE ALLOCATION YEAR ON THE  CERTIFICATE  OF  TAX
CREDIT.  TAXPAYERS ELIGIBLE TO CLAIM A CREDIT MUST REPORT THE ALLOCATION
YEAR DIRECTLY ON THEIR EMPIRE STATE FILM PRODUCTION CREDIT TAX FORM  FOR
EACH YEAR A CREDIT IS CLAIMED AND INCLUDE A COPY OF THE CERTIFICATE WITH
THEIR  TAX RETURN.   IN THE CASE OF A QUALIFIED FILM THAT RECEIVES FUNDS
FROM ADDITIONAL POOL 2, NO EMPIRE STATE FILM PRODUCTION CREDIT SHALL  BE
CLAIMED  BEFORE  THE LATER OF (1) THE TAXABLE YEAR THE PRODUCTION OF THE
QUALIFIED FILM IS COMPLETE, OR (2) THE TAXABLE YEAR IMMEDIATELY  FOLLOW-
ING  THE ALLOCATION YEAR FOR WHICH THE FILM HAS BEEN ALLOCATED CREDIT BY
THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVELOPMENT.
  S 3. Paragraph 1 of subdivision (a) of section 24 of the tax  law,  as
added  by  section  1  of  part  P of chapter 60 of the laws of 2004, is
amended to read as follows:
  (1) Allowance  of  credit.  A  taxpayer  which  is  a  qualified  film
production  company, OR A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY,
or which is a sole proprietor of OR A MEMBER OF A PARTNERSHIP WHICH IS a
qualified film  production  company  OR  A  QUALIFIED  INDEPENDENT  FILM
PRODUCTION COMPANY, and which is subject to tax under articles nine-A or
twenty-two  of this chapter, shall be allowed a credit against such tax,
pursuant to  the  provisions  referenced  in  subdivision  (c)  of  this
section, to be computed as hereinafter provided.
  S  4.  Paragraph 2 of subdivision (a) of section 24 of the tax law, as
amended by section 1 of part Y-1 of chapter 57 of the laws of  2009,  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:  (I)  the  qualified

S. 6610--B                         19                         A. 9710--C

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  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
performance of services at any film production facility within and with-
out the state in the production of such qualified film, AND (II)  EXCEPT
WITH  RESPECT  TO  A  QUALIFIED  INDEPENDENT  FILM PRODUCTION COMPANY OR
PILOT, AT LEAST TEN PERCENT OF THE TOTAL PRINCIPAL PHOTOGRAPHY  SHOOTING
DAYS  SPENT  IN THE PRODUCTION OF SUCH QUALIFIED FILM MUST BE SPENT AT A
QUALIFIED  FILM  PRODUCTION  FACILITY.    However,  if   the   qualified
production  costs  (excluding post production costs) which are attribut-
able 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 quali-
fied production costs attributable to the use of  tangible  property  or
the  performance  of  services  in the production of such qualified 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 facili-
ty 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 quali-
fied film. The credit shall be allowed for the taxable year in which the
production of such qualified film is completed.  HOWEVER, IN THE CASE OF
A QUALIFIED FILM THAT RECEIVES FUNDS FROM ADDITIONAL POOL 2,  NO  CREDIT
SHALL BE CLAIMED BEFORE THE LATER OF (1) THE TAXABLE YEAR THE PRODUCTION
OF  THE  QUALIFIED FILM IS COMPLETE, OR (2) THE TAXABLE YEAR IMMEDIATELY
FOLLOWING THE ALLOCATION YEAR FOR WHICH  THE  FILM  HAS  BEEN  ALLOCATED
CREDIT BY THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVEL-
OPMENT.  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 FIRST taxable year in which the [production
of  the  qualified  film  is completed] CREDIT MAY BE CLAIMED 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 FIRST taxable year in which the [production
of  the  qualified  film  is completed] CREDIT MAY BE CLAIMED and in the
next two succeeding taxable years, with one-third of the amount  of  the
credit allowed being claimed in each year.
  S 5. Subdivision (a) of section 24 of the tax law is amended by adding
a new paragraph 4 to read as follows:
  (4)  NOTWITHSTANDING  THE  FOREGOING PROVISIONS OF THIS SUBDIVISION, A
QUALIFIED  FILM  PRODUCTION  COMPANY  OR  QUALIFIED   INDEPENDENT   FILM
PRODUCTION  COMPANY, THAT HAS APPLIED FOR CREDIT UNDER THE PROVISIONS OF
THIS SECTION, AGREES AS A CONDITION FOR THE GRANTING OF THE CREDIT:  (I)
TO INCLUDE IN EACH QUALIFIED FILM DISTRIBUTED BY DVD, OR OTHER MEDIA FOR
THE  SECONDARY  MARKET,  A  NEW  YORK  PROMOTIONAL VIDEO APPROVED BY THE
GOVERNOR'S OFFICE OF MOTION PICTURE AND  TELEVISION  DEVELOPMENT  OR  TO
INCLUDE  IN  THE  END  CREDITS  OF  EACH QUALIFIED FILM "FILMED WITH THE
SUPPORT OF THE NEW YORK STATE GOVERNOR'S OFFICE OF  MOTION  PICTURE  AND
TELEVISION  DEVELOPMENT" AND A LOGO PROVIDED BY THE GOVERNOR'S OFFICE OF
MOTION PICTURE AND TELEVISION DEVELOPMENT, AND (II) TO CERTIFY  THAT  IT
WILL  PURCHASE TAXABLE TANGIBLE PROPERTY AND SERVICES, DEFINED AS QUALI-
FIED PRODUCTION COSTS PURSUANT TO PARAGRAPH ONE OF  SUBDIVISION  (B)  OF

S. 6610--B                         20                         A. 9710--C

THIS  SECTION, ONLY FROM COMPANIES REGISTERED TO COLLECT AND REMIT STATE
AND LOCAL SALES AND USE TAXES  PURSUANT  TO  ARTICLES  TWENTY-EIGHT  AND
TWENTY-NINE OF THIS CHAPTER.
  S  6.  Paragraph 1 of subdivision (b) of section 24 of the tax law, as
added by section 1 of part P of chapter 60  of  the  laws  of  2004,  is
amended to read as follows:
  (1)  "Qualified  production  costs" means production costs only to the
extent such costs are attributable to the use of  tangible  property  or
the  performance of services within the state directly and predominantly
in the production (including pre-production and post  production)  of  a
qualified film, PROVIDED, HOWEVER, THAT QUALIFIED PRODUCTION COSTS SHALL
NOT  INCLUDE  POST  PRODUCTION  COSTS  UNLESS  THE  PORTION  OF THE POST
PRODUCTION COSTS PAID OR INCURRED THAT IS ATTRIBUTABLE  TO  THE  USE  OF
TANGIBLE  PROPERTY  OR  THE  PERFORMANCE  OF SERVICES IN NEW YORK IN THE
PRODUCTION OF SUCH QUALIFIED FILM EQUALS OR EXCEEDS SEVENTY-FIVE PERCENT
OF THE TOTAL POST PRODUCTION COSTS SPENT WITHIN AND WITHOUT NEW YORK  IN
THE PRODUCTION OF SUCH QUALIFIED FILM.
  S  7.  Paragraph 4 of subdivision (b) of section 24 of the tax law, as
added by section 1 of part P of chapter 60  of  the  laws  of  2004,  is
amended to read as follows:
  (4) "Film production facility" shall mean a building and/or complex of
buildings  and  their improvements and associated back-lot facilities in
which films are or are intended  to  be  regularly  produced  and  which
contain  at  least  one  sound  stage, PROVIDED, HOWEVER, THAT AN ARMORY
OWNED BY THE STATE OR CITY OF NEW YORK LOCATED IN THE CITY OF  NEW  YORK
SHALL  NOT  BE  CONSIDERED  TO BE A "FILM PRODUCTION FACILITY" UNLESS IT
MEETS THE CRITERIA CONTAINED IN PARAGRAPH FIVE OF  THIS  SUBDIVISION  OR
UNLESS  SUCH FACILITY IS USED BY A QUALIFIED INDEPENDENT FILM PRODUCTION
COMPANY.
  S 8. Paragraph 5 of subdivision (b) of section 24 of the tax  law,  as
added  by  section  1  of  part  P of chapter 60 of the laws of 2004, is
amended to read as follows:
  (5) "Qualified film production facility" shall mean a film  production
facility  in the state, which contains at least one sound stage having a
minimum of seven thousand square feet of  contiguous  production  space,
PROVIDED,  HOWEVER,  THAT  EXCEPT  WITH  RESPECT  TO  A  QUALIFIED  FILM
PRODUCTION  FACILITY  BEING  USED  BY  A  QUALIFIED   INDEPENDENT   FILM
PRODUCTION  COMPANY:  (I)  A FILM PRODUCTION FACILITY IN THE CITY OF NEW
YORK MUST CONTAIN AT LEAST ONE SOUND STAGE HAVING  A  MINIMUM  OF  SEVEN
THOUSAND  SQUARE FEET OF CONTIGUOUS PRODUCTION SPACE THAT IS SOUND PROOF
WITH A NOISE CRITERIA ("NC") OF 30 OR BETTER, HAS SUFFICIENT HEATING AND
AIR CONDITIONING FOR SHOOTING WITHOUT THE NEED FOR  SUPPLEMENTAL  UNITS,
INCORPORATES  A  PERMANENT GRID AND SUFFICIENT BUILT-IN ELECTRIC SERVICE
FOR SHOOTING WITHOUT THE NEED FOR GENERATORS, AND IS COLUMN-FREE WITH  A
CLEAR HEIGHT OF AT LEAST SIXTEEN FEET UNDER THE PERMANENT GRID; AND (II)
AN  ARMORY OWNED BY THE STATE OR CITY OF NEW YORK LOCATED IN THE CITY OF
NEW YORK THAT DOES NOT SATISFY THE CRITERIA OF SUBPARAGRAPH (I) OF  THIS
PARAGRAPH  SHALL BE TREATED AS A QUALIFIED FILM PRODUCTION FACILITY UPON
CERTIFICATION BY THE GOVERNOR'S OFFICE OF MOTION PICTURE AND  TELEVISION
DEVELOPMENT  OF  A PETITION SUBMITTED TO THAT OFFICE BY A QUALIFIED FILM
PRODUCTION COMPANY ESTABLISHING THAT NO QUALIFIED FILM PRODUCTION FACIL-
ITY IS AVAILABLE IN THE CITY OF NEW YORK THAT HAS STAGE SPACE  AVAILABLE
FOR  SHOOTING  SUCH  COMPANY'S FILM. SUCH PETITION SHALL BE SUBMITTED NO
LATER THAN NINETY DAYS PRIOR TO THE START OF PRINCIPAL  PHOTOGRAPHY  FOR
THE QUALIFIED FILM AND THE GOVERNOR'S OFFICE OF MOTION PICTURE AND TELE-
VISION  DEVELOPMENT  SHALL  HAVE TEN DAYS TO CERTIFY OR REJECT THE PETI-

S. 6610--B                         21                         A. 9710--C

TION. A STAGE WILL BE DEEMED UNAVAILABLE IF CONSIDERATION HAS BEEN  PAID
FOR ITS USE OR SUCH STAGE IS CURRENTLY UNDER AN AGREEMENT WITH AN OPTION
FOR  USE  AND,  IN  EITHER CIRCUMSTANCE, SUCH PERIOD OF USE INCLUDES THE
PETITIONER'S ESTIMATED START DATE OF PRINCIPAL PHOTOGRAPHY.
  S 9. Subdivision (b) of section 24 of the tax law is amended by adding
a new paragraph 7 to read as follows:
  (7)  "QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY" IS A CORPORATION,
PARTNERSHIP, LIMITED PARTNERSHIP, OR OTHER ENTITY OR INDIVIDUAL, THAT OR
WHO (I) IS PRINCIPALLY ENGAGED IN THE PRODUCTION  OF  A  QUALIFIED  FILM
WITH  A MAXIMUM BUDGET OF FIFTEEN MILLION DOLLARS, AND (II) CONTROLS THE
QUALIFIED FILM DURING PRODUCTION, AND (III) EITHER  IS  NOT  A  PUBLICLY
TRADED  ENTITY, OR NO MORE THAN FIVE PERCENT OF THE BENEFICIAL OWNERSHIP
OF WHICH IS OWNED, DIRECTLY OR INDIRECTLY, BY A PUBLICLY TRADED ENTITY.
  S 10. Section 24 of the tax law is amended by adding a new subdivision
(d) to read as follows:
  (D) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, EMPLOYEES AND OFFI-
CERS OF THE GOVERNOR'S OFFICE OF MOTION PICTURE AND TELEVISION  DEVELOP-
MENT  AND  THE DEPARTMENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND
EXCHANGE INFORMATION REGARDING THE  CREDITS  APPLIED  FOR,  ALLOWED,  OR
CLAIMED  PURSUANT  TO  THIS  SECTION  AND TAXPAYERS WHO ARE APPLYING FOR
CREDITS OR WHO ARE CLAIMING CREDITS, INCLUDING INFORMATION CONTAINED  IN
OR  DERIVED  FROM  CREDIT  CLAIM  FORMS  SUBMITTED TO THE DEPARTMENT AND
APPLICATIONS FOR CREDIT SUBMITTED TO THE  GOVERNOR'S  OFFICE  OF  MOTION
PICTURE AND TELEVISION DEVELOPMENT.
  S  11.  Section 9 of part P of chapter 60 of the laws of 2004 amending
the tax law relating to the empire  state  film  production  credit,  as
amended  by section 5 of part WW-1 of chapter 57 of the laws of 2008, is
amended to read as follows:
  S 9. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2004, with respect to  "qualified
production  costs"  paid  or  incurred  on or after such effective date,
providing final applications are approved  on  or  after  the  effective
date,  regardless  of  whether  the initial application relating to such
qualified film was first submitted before such date,  [provided  further
that  this  act  shall  expire  and  be deemed repealed January 1, 2014,
provided further that the expiration and repeal of this  act  shall  not
affect  the  carry  over of any credit allowed pursuant to this act and,
subsequent to the expiration and repeal of this  act,  such  carry  over
credits  shall  be allowed as provided by and pursuant to the provisions
of this act, and] provided further that the IMB credit for energy  taxes
under  subsection  (t-l)  of  section  606  of  the tax law contained in
section three of this act shall expire on the same date as  provided  in
subdivision  (a)  of  section  49 of part Y of chapter 63 of the laws of
2000.
  S 12. The tax law is amended by adding a new section  31  to  read  as
follows:
  S 31. EMPIRE STATE FILM POST PRODUCTION CREDIT. (A) ALLOWANCE OF CRED-
IT.  (1)  A  TAXPAYER  WHICH IS A FILM PRODUCTION COMPANY OR A QUALIFIED
FILM PRODUCTION COMPANY, AND WHICH  IS  SUBJECT  TO  TAX  UNDER  ARTICLE
NINE-A  OR TWENTY-TWO OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST
SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN  SUBDIVISION  (C)  OF
THIS SECTION TO BE COMPUTED AS PROVIDED IN THIS SUBDIVISION.
  (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 TEN PERCENT
AND THE QUALIFIED POST PRODUCTION COSTS PAID  IN  THE  PRODUCTION  OF  A
QUALIFIED FILM AT A QUALIFIED POST PRODUCTION FACILITY.

S. 6610--B                         22                         A. 9710--C

  (3)  A  TAXPAYER  SHALL  NOT BE ELIGIBLE FOR THE CREDIT ESTABLISHED BY
THIS SECTION UNLESS THE QUALIFIED POST PRODUCTION COSTS AT  A  QUALIFIED
POST  PRODUCTION  FACILITY  MEET  OR  EXCEED SEVENTY-FIVE PERCENT OF THE
TOTAL POST PRODUCTION COSTS PAID OR INCURRED IN THE POST  PRODUCTION  OF
THE  QUALIFIED FILM AT ANY POST PRODUCTION FACILITY. THE CREDIT SHALL BE
ALLOWED FOR THE TAXABLE YEAR IN WHICH THE PRODUCTION OF  SUCH  QUALIFIED
FILM IS COMPLETED.
  (4)  NO  QUALIFIED  POST PRODUCTION COSTS USED BY A TAXPAYER EITHER AS
THE BASIS FOR THE ALLOWANCE  OF  THE  CREDIT  PROVIDED  FOR  UNDER  THIS
SECTION OR USED IN THE CALCULATION OF THE CREDIT PROVIDED FOR UNDER THIS
SECTION SHALL BE USED BY SUCH TAXPAYER TO CLAIM ANY OTHER CREDIT ALLOWED
PURSUANT TO THIS CHAPTER.
  (B)  DEFINITIONS.  AS  USED  IN THIS SECTION THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (1) "QUALIFIED FILM PRODUCTION COMPANY"  AND  "QUALIFIED  FILM"  SHALL
HAVE  THE  SAME  MEANING  AS  ARE  ASCRIBED  TO  SUCH  TERMS  BY SECTION
TWENTY-FOUR OF THIS ARTICLE.
  (2) "FILM PRODUCTION COMPANY" IS A CORPORATION,  PARTNERSHIP,  LIMITED
PARTNERSHIP,  OR  OTHER ENTITY OR INDIVIDUAL WHICH OR WHO IS PRINCIPALLY
ENGAGED IN THE PRODUCTION OF A QUALIFIED FILM AND CONTROLS THE QUALIFIED
FILM DURING PRODUCTION.
  (3) "POST PRODUCTION COSTS" MEANS PRODUCTION OF ORIGINAL CONTENT FOR A
QUALIFIED FILM EMPLOYING TRADITIONAL, EMERGING AND  NEW  WORKFLOW  TECH-
NIQUES  USED  IN POST-PRODUCTION FOR PICTURE, SOUND AND MUSIC EDITORIAL,
RERECORDING AND MIXING, VISUAL EFFECTS, GRAPHIC DESIGN,  ORIGINAL  SCOR-
ING, ANIMATION, AND MUSICAL COMPOSITION; BUT SHALL NOT INCLUDE THE EDIT-
ING OF PREVIOUSLY PRODUCED CONTENT FOR A QUALIFIED FILM.
  (4)  "POST  PRODUCTION  FACILITY"  MEANS  A BUILDING AND/OR COMPLEX OF
BUILDINGS AND THEIR IMPROVEMENTS ON WHICH FILM ARE INTENDED TO  BE  POST
PRODUCED.
  (5)  "QUALIFIED  POST  PRODUCTION  FACILITY"  MEANS  A POST PRODUCTION
FACILITY LOCATED IN THE STATE, ENGAGED IN FINISHING A QUALIFIED FILM.
  (C) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9-A: SECTION 210: SUBDIVISION 41.
  (2) ARTICLE 22: SECTION 606: SUBSECTION (QQ).
  S  13.  Section 210 of the tax law is amended by adding a new subdivi-
sion 41 to read as follows:
  41. EMPIRE STATE FILM POST PRODUCTION CREDIT. (A) ALLOWANCE OF CREDIT.
A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION THIRTY-ONE OF THIS  CHAP-
TER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION
THIRTY-ONE AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
THAN  THE  AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF THIS
SECTION. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF THE  CREDIT  ALLOWABLE
UNDER  THIS  SUBDIVISION  FOR  ANY  TAXABLE YEAR REDUCES THE TAX TO SUCH
AMOUNT, FIFTY PERCENT OF THE EXCESS SHALL BE TREATED AS  AN  OVERPAYMENT
OF  TAX  TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF
SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER,  THE
PROVISIONS  OF  SUBSECTION  (C)  OF SECTION ONE THOUSAND EIGHTY-EIGHT OF
THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL  BE  PAID  THEREON.  THE
BALANCE OF SUCH CREDIT NOT CREDITED OR REFUNDED IN SUCH TAXABLE YEAR MAY
BE  A  CARRY  OVER TO THE IMMEDIATELY SUCCEEDING TAXABLE YEAR AND MAY BE
DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR. THE EXCESS, IF  ANY,  OF
THE  AMOUNT OF THE CREDIT OVER THE TAX FOR SUCH SUCCEEDING YEAR SHALL BE

S. 6610--B                         23                         A. 9710--C

TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORD-
ANCE  WITH  THE  PROVISIONS  OF  SECTION ONE THOUSAND EIGHTY-SIX OF THIS
CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF  SECTION
ONE  THOUSAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST
SHALL BE PAID THEREON.
  S 14. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a  new  clause  (xxxi)  to  read  as
follows:
  (XXXI) EMPIRE STATE FILM         AMOUNT OF CREDIT FOR
       POST PRODUCTION             QUALIFIED POST PRODUCTION
       CREDIT UNDER                COSTS OF A QUALIFIED FILM
       SUBSECTION (QQ)             UNDER SUBDIVISION FORTY-ONE OF
                                   SECTION TWO HUNDRED TEN
  S 15. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
  (QQ)  EMPIRE STATE FILM POST PRODUCTION CREDIT. (1) ALLOWANCE OF CRED-
IT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION  THIRTY-ONE  OF  THIS
CHAPTER  SHALL  BE  ALLOWED  A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH
SECTION THIRTY-ONE AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, FIFTY PERCENT OF THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT  OF
TAX  TO  BE  CREDITED  OR  REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF
SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER,  THE
PROVISIONS  OF  SUBSECTION  (C)  OF SECTION ONE THOUSAND EIGHTY-EIGHT OF
THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL  BE  PAID  THEREON.  THE
BALANCE OF SUCH CREDIT NOT CREDITED OR REFUNDED IN SUCH TAXABLE YEAR MAY
BE  CARRIED  OVER  TO THE IMMEDIATELY SUCCEEDING TAXABLE YEAR AND MAY BE
DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR. THE EXCESS, IF  ANY,  OF
THE  AMOUNT OF THE CREDIT OVER THE TAX FOR SUCH SUCCEEDING YEAR SHALL BE
TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORD-
ANCE  WITH  THE  PROVISIONS  OF  SECTION ONE THOUSAND EIGHTY-SIX OF THIS
CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF  SECTION
ONE  THOUSAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST
SHALL BE PAID THEREON.
  S 16. This act shall take effect immediately; provided  that  sections
one  through  nine  of  this  act shall apply to applications for credit
awarded under additional pool 2 authorized by section two of this act.

                                 PART R

  Section 1. It is the intent of the legislature to clarify and  confirm
that  the  amendments made to the general municipal law by chapter 57 of
the laws of 2009 that require the revocation of certification of certain
business entities previously certified under the  empire  zones  program
are  intended  to be effective for the taxable year in which the revoca-
tion of certification occurs  and  for  all  subsequent  taxable  years,
notwithstanding that any such business entity may subsequently apply for
certification  pursuant  to  part  11  of  title 5 of the New York state
codes, rules and regulations, and that such revocations of certification
that occur in 2009 are deemed to be  in  effect  for  the  taxable  year
commencing on or after January 1, 2008 and before January 1, 2009.
  S  2.  Subdivision (a) of section 959 of the general municipal law, as
amended by section 3 of part S-1 of chapter 57 of the laws of  2009,  is
amended to read as follows:

S. 6610--B                         24                         A. 9710--C

  (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 certification
by  the  commissioner  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  caus-
ing  individuals to transfer from existing employment with another busi-
ness enterprise to similar employment with the  business  enterprise  so
certified,  and  transferring existing employment from one or more other
municipalities, 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
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 decertification by the commissioner, upon the recommendation of  the
commissioner  of  labor,  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 the business enterprise  has  committed  substantial

S. 6610--B                         25                         A. 9710--C

violations  of laws for the protection of workers including all federal,
state and local labor laws, rules or regulations; and (v) the  decertif-
ication  by  the commissioner 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 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 busi-
ness  enterprise failed to disclose facts in its application for certif-
ication that would constitute grounds for not issuing  a  certification;
(2)  the  business enterprise has failed to construct, expand, rehabili-
tate or operate or invest in its facility  substantially  in  accordance
with the representations 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;
(4) where applicable, the business enterprise has failed  to  submit  an
annual  report  after  it  has  applied for zone tax benefits or program
assistance based on new hires or investments or failed to  submit  other
information  when  due;  (5) the business enterprise, 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 anoth-
er  business  enterprise  with similar ownership and located in New York
state to similar employment with the certified business enterprise or if
the enterprise acquired, purchased, leased, or  had  transferred  to  it
real  property  previously  owned  by  an entity with similar ownership,
regardless of form of incorporation or organization;  (6)  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 business
enterprise is decertified with respect to an empire zone: (A)  the  date
determined  to  be  the earliest event constituting grounds for revoking
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; WITH RESPECT TO
ANY BUSINESS ENTERPRISE WHOSE CERTIFICATION HAS BEEN REVOKED PURSUANT TO
SUBPARAGRAPH FIVE OR SIX OF THIS PARAGRAPH, THAT REVOCATION (I) WILL  BE
EFFECTIVE  FOR  A  TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND EIGHT AND BEFORE JANUARY  FIRST,  TWO  THOUSAND  NINE  AND  FOR
SUBSEQUENT TAXABLE YEARS, UNLESS THE BUSINESS ENTERPRISE IS SUBSEQUENTLY
RE-CERTIFIED PURSUANT TO PART 11 OF TITLE 5 OF THE NEW YORK STATE CODES,
RULES  AND  REGULATIONS  FOR A BUSINESS ENTERPRISE FOR WHICH A REVIEW IS
REQUIRED TO BE CONDUCTED PURSUANT TO SUBDIVISION (W) OF THIS SECTION  IN
CALENDAR  YEAR  TWO THOUSAND NINE, AND (II) THEREAFTER WILL BE EFFECTIVE
FOR THE TAXABLE YEAR DURING WHICH THE  COMMISSIONER  MAKES  HIS  OR  HER
DETERMINATION  (PRIOR  TO  ANY  APPEAL) TO REVOKE THE CERTIFICATION OF A
BUSINESS ENTERPRISE AND FOR SUBSEQUENT TAXABLE YEARS;
  S 3. Subdivision (w) of section 959 of the general municipal  law,  as
amended  by  section 3 of part S-1 of chapter 57 of the laws of 2009, is
amended to read as follows:

S. 6610--B                         26                         A. 9710--C

  (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
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)] (V) 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  economic,  social  and
environmental  factors  when  evaluating  the  costs  and  benefits of a
project to the state and whether continued  certification  is  warranted
based  on such factors. The commissioner shall provide written notifica-
tion to such business enterprise of his or her determination  to  revoke
the  certification,  including  the  reasons therefor. Such notification
shall state that the business enterprise may appeal the determination 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 commis-
sioner's revocation notification. Provided that the business  enterprise
appeals the commissioner's determination within fifteen business days of
the  commissioner's revocation notification, the business enterprise may
present a written submission to the empire  zone  designation  board  no
later  than  sixty days following the date the commissioner'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 business 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] SUFFICIENT evidence presented BY THE BUSI-
NESS ENTERPRISE demonstrating  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  subdivision  (a)  of this section, any extraordinary
circumstances occurred which would justify the  continued  certification
of the business enterprise.
  S 4. Section 969 of the general municipal law is amended by adding two
new subdivisions (f) and (g) to read as follows:
  (F)  NOTWITHSTANDING  SUBDIVISION  (A)  OF  THIS  SECTION, IF THE ZONE
ADMINISTRATIVE BOARD DEMONSTRATES THAT, PRIOR TO  THE  DATE  THE  EMPIRE
ZONES  EXPIRE  UNDER  THIS  SECTION, THAT IT HAD SUBMITTED A PRELIMINARY
APPLICATION TO THE DEPARTMENT  OF  ECONOMIC  DEVELOPMENT  REQUESTING  TO
REVISE THE BOUNDARIES OF ITS ZONE IN ORDER TO ACCOMMODATE A PROJECT THAT
WOULD  RESULT  IN THE CREATION OF JOBS WITHIN THE ZONE, THE COMMISSIONER
OF ECONOMIC DEVELOPMENT MAY REVIEW AND APPROVE  SUCH  BOUNDARY  REVISION
AND,  IF APPROVED, MAY ESTABLISH AN EFFECTIVE DATE PRIOR TO THE DATE THE
EMPIRE ZONES EXPIRE PURSUANT TO SUBDIVISION (A) OF THIS SECTION.

S. 6610--B                         27                         A. 9710--C

  (G) NOTWITHSTANDING ANY REGULATIONS  TO  THE  CONTRARY,  A  REGIONALLY
SIGNIFICANT  PROJECT  AS  DEFINED IN PARAGRAPH (I) OF SUBDIVISION (D) OF
SECTION NINE HUNDRED FIFTY-SEVEN OF THIS ARTICLE, THAT WAS DEEMED ELIGI-
BLE BY THE LOCAL ZONE ADMINISTRATIVE BOARD AND RECOMMENDED FOR  APPROVAL
TO  THE  COMMISSIONER  OF ECONOMIC DEVELOPMENT ON OR BEFORE THE DATE THE
EMPIRE ZONES EXPIRE PURSUANT TO SUBDIVISION (A)  OF  THIS  SECTION,  THE
COMMISSIONER  OF  ECONOMIC  DEVELOPMENT, IF THE PROJECT IS APPROVED, MAY
ESTABLISH AN EFFECTIVE DATE PRIOR TO THE DATE THE  EMPIRE  ZONES  EXPIRE
PURSUANT TO SUBDIVISION (A) OF THIS SECTION.
  S 5. Paragraph 6 of subdivision (d) of section 1119 of the tax law, as
added  by  section  31 of part S-1 of chapter 57 of the laws of 2009, is
amended to read as follows:
  (6) Any reference in this chapter OR IN ANY LOCAL  LAW,  ORDINANCE  OR
RESOLUTION  ENACTED  PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF
THIS CHAPTER to former subdivision (z) of section eleven hundred fifteen
of this article will be deemed to be a reference  to  this  subdivision,
AND  ANY  SUCH  LOCAL  LAW,  ORDINANCE  OR RESOLUTION WHICH PROVIDES THE
EXEMPTIONS DESCRIBED IN FORMER SUBDIVISION (Z) OF  SUCH  SECTION  ELEVEN
HUNDRED FIFTEEN SHALL BE DEEMED INSTEAD TO PROVIDE THE REFUNDS AND CRED-
ITS DESCRIBED IN THIS SUBDIVISION.
  S 6. Subdivision (a) of section 17 of the tax law, as added by section
43  of part S-1 of chapter 57 of the laws of 2009, is amended to read as
follows:
  (a) The department of taxation and  finance  must  publish  an  empire
zones  tax benefits report annually by [January thirty-first] JUNE THIR-
TIETH. The first report must be published by [January thirty-first] JUNE
THIRTIETH, two thousand [thirteen] ELEVEN.
  S 7. Subdivision (d) of section 44 of part S-1 of chapter  57  of  the
laws  of 2009, amending the general municipal law and the tax law relat-
ing to enacting reforms to the empire zones program, is amended to  read
as follows:
  (d)  section  forty-two  of  this  act shall take effect on January 1,
[2012] 2010; and
  S 8. Subdivision 12-B of section 210 of the  tax  law  is  amended  by
adding two new paragraphs (g) and (h) to read as follows:
  (G)  NOTWITHSTANDING  THE EXPIRATION OF THE EMPIRE ZONES PROGRAM UNDER
ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL  LAW,  A  TAXPAYER  THAT  IS
CERTIFIED  AS  A  QUALIFIED  INVESTMENT PROJECT PURSUANT TO SUCH ARTICLE
EIGHTEEN-B ON THE DAY IMMEDIATELY PRECEDING THE  DAY  THE  EMPIRE  ZONES
PROGRAM EXPIRED SHALL CONTINUE TO BE DEEMED CERTIFIED UNDER SUCH ARTICLE
EIGHTEEN-B  FOR  PURPOSES  OF  THIS SUBDIVISION FOR THE REMAINDER OF THE
TAXABLE YEAR IN WHICH THE EXPIRATION OCCURRED AND FOR THE NEXT  SUCCEED-
ING  NINE  TAXABLE  YEARS.  IN  ADDITION, THE AREAS DESIGNATED AS EMPIRE
ZONES IN WHICH THE TAXPAYER  IS  CERTIFIED  AS  A  QUALIFIED  INVESTMENT
PROJECT  ON  THE  DAY  IMMEDIATELY  PRECEDING  THE  DAY THE EMPIRE ZONES
PROGRAM EXPIRED SHALL CONTINUE TO BE DEEMED EMPIRE ZONES FOR PURPOSES OF
THIS SUBDIVISION FOR THE REMAINDER OF THE  TAXABLE  YEAR  IN  WHICH  THE
EXPIRATION OCCURRED AND FOR THE NEXT SUCCEEDING NINE TAXABLE YEARS.
  (H)  NOTWITHSTANDING  THE EXPIRATION OF THE EMPIRE ZONES PROGRAM UNDER
ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW AND EXCEPT  AS  PROVIDED
IN PARAGRAPH (G) OF THIS SUBDIVISION, A TAXPAYER THAT IS CERTIFIED AS AN
EMPIRE  ZONE  BUSINESS  PURSUANT  TO  SUCH ARTICLE EIGHTEEN-B ON THE DAY
IMMEDIATELY PRECEDING THE DAY THE EMPIRE  ZONES  PROGRAM  EXPIRED  SHALL
CONTINUE  TO  BE  DEEMED  CERTIFIED  UNDER  SUCH  ARTICLE EIGHTEEN-B FOR
PURPOSES OF THIS SUBDIVISION UNTIL APRIL FIRST, TWO  THOUSAND  FOURTEEN.
IN  ADDITION, THE AREAS DESIGNATED AS EMPIRE ZONES IN WHICH THE TAXPAYER

S. 6610--B                         28                         A. 9710--C

IS CERTIFIED AS AN EMPIRE ZONE BUSINESS ON THE DAY IMMEDIATELY PRECEDING
THE DAY THE EMPIRE ZONES PROGRAM EXPIRED SHALL  CONTINUE  TO  BE  DEEMED
EMPIRE  ZONES  FOR  PURPOSES  OF THIS SUBDIVISION UNTIL APRIL FIRST, TWO
THOUSAND FOURTEEN.
  S 9. Subsection (j) of section 606 of the tax law is amended by adding
a new paragraph 7 to read as follows:
  (7)  NOTWITHSTANDING  THE EXPIRATION OF THE EMPIRE ZONES PROGRAM UNDER
ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL  LAW,  A  TAXPAYER  THAT  IS
CERTIFIED AS AN EMPIRE ZONE BUSINESS PURSUANT TO SUCH ARTICLE EIGHTEEN-B
ON  THE  DAY  IMMEDIATELY  PRECEDING  THE  DAY  THE EMPIRE ZONES PROGRAM
EXPIRED SHALL CONTINUE TO BE DEEMED CERTIFIED UNDER SUCH  ARTICLE  EIGH-
TEEN-B  FOR PURPOSES OF THIS SUBDIVISION UNTIL APRIL FIRST, TWO THOUSAND
FOURTEEN. IN ADDITION, THE AREAS DESIGNATED AS EMPIRE ZONES IN WHICH THE
TAXPAYER IS CERTIFIED AS AN EMPIRE ZONE BUSINESS ON THE DAY  IMMEDIATELY
PRECEDING  THE DAY THE EMPIRE ZONES PROGRAM EXPIRED SHALL CONTINUE TO BE
DEEMED EMPIRE ZONES FOR PURPOSES OF THIS SUBDIVISION UNTIL APRIL  FIRST,
TWO THOUSAND FOURTEEN.
  S  10.  Subdivision  12-C  of section 210 of the tax law is amended by
adding two new paragraphs (d) and (e) to read as follows:
  (D) NOTWITHSTANDING THE EXPIRATION OF THE EMPIRE ZONES  PROGRAM  UNDER
ARTICLE  EIGHTEEN-B  OF  THE  GENERAL  MUNICIPAL LAW, A TAXPAYER THAT IS
CERTIFIED AS A QUALIFIED INVESTMENT PROJECT  PURSUANT  TO  SUCH  ARTICLE
EIGHTEEN-B  ON  THE  DAY  IMMEDIATELY PRECEDING THE DAY THE EMPIRE ZONES
PROGRAM EXPIRED SHALL CONTINUE TO BE DEEMED CERTIFIED UNDER SUCH ARTICLE
EIGHTEEN-B FOR PURPOSES OF THIS SUBDIVISION FOR  THE  REMAINDER  OF  THE
TAXABLE  YEAR IN WHICH THE EXPIRATION OCCURRED AND FOR THE NEXT SUCCEED-
ING NINE TAXABLE YEARS. IN ADDITION,  THE  AREAS  DESIGNATED  AS  EMPIRE
ZONES  IN  WHICH  THE  TAXPAYER  IS  CERTIFIED AS A QUALIFIED INVESTMENT
PROJECT ON THE DAY  IMMEDIATELY  PRECEDING  THE  DAY  THE  EMPIRE  ZONES
PROGRAM EXPIRED SHALL CONTINUE TO BE DEEMED EMPIRE ZONES FOR PURPOSES OF
THIS  SUBDIVISION  FOR  THE  REMAINDER  OF THE TAXABLE YEAR IN WHICH THE
EXPIRATION OCCURRED AND FOR THE NEXT SUCCEEDING NINE TAXABLE YEARS.
  (E) NOTWITHSTANDING THE EXPIRATION OF THE EMPIRE ZONES  PROGRAM  UNDER
ARTICLE  EIGHTEEN-B  OF THE GENERAL MUNICIPAL LAW AND EXCEPT AS PROVIDED
IN PARAGRAPH (D) OF THIS SUBDIVISION, A TAXPAYER THAT IS CERTIFIED AS AN
EMPIRE ZONE BUSINESS PURSUANT TO SUCH  ARTICLE  EIGHTEEN-B  ON  THE  DAY
IMMEDIATELY  PRECEDING  THE  DAY  THE EMPIRE ZONES PROGRAM EXPIRED SHALL
CONTINUE TO BE DEEMED IN THE EMPIRE  ZONE  IN  WHICH  THE  TAXPAYER  WAS
CERTIFIED  AS  AN  EMPIRE ZONE BUSINESS ON THE DAY IMMEDIATELY PRECEDING
THE DAY THE EMPIRE ZONES PROGRAM EXPIRED FOR EACH  OF  THE  THREE  YEARS
NEXT  SUCCEEDING THE TAXABLE YEAR FOR WHICH THE CREDIT UNDER SUBDIVISION
TWELVE-B IS ALLOWED.
  S 11. Subsection (j-1) of section 606 of the tax  law  is  amended  by
adding a new subdivision (4) to read as follows:
  (4)  NOTWITHSTANDING  THE EXPIRATION OF THE EMPIRE ZONES PROGRAM UNDER
ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL  LAW,  A  TAXPAYER  THAT  IS
CERTIFIED AS AN EMPIRE ZONE BUSINESS PURSUANT TO SUCH ARTICLE EIGHTEEN-B
ON  THE  DAY  IMMEDIATELY  PRECEDING  THE  DAY  THE EMPIRE ZONES PROGRAM
EXPIRED SHALL CONTINUE TO BE DEEMED IN THE  EMPIRE  ZONE  IN  WHICH  THE
TAXPAYER WAS CERTIFIED AS AN EMPIRE ZONE BUSINESS ON THE DAY IMMEDIATELY
PRECEDING THE DAY THE EMPIRE ZONES PROGRAM EXPIRED FOR EACH OF THE THREE
YEARS NEXT SUCCEEDING THE TAXABLE YEAR FOR WHICH THE CREDIT UNDER SUBDI-
VISION (J) IS ALLOWED.
  S 12. Section 14 of the tax law is amended by adding a new subdivision
(h) to read as follows:

S. 6610--B                         29                         A. 9710--C

  (H)  SALES  AND  USE TAX. (1) IN ADDITION TO THE OTHER REQUIREMENTS OF
THIS SECTION, FOR BUSINESS ENTERPRISES  CERTIFIED  PURSUANT  TO  ARTICLE
EIGHTEEN-B  OF THE GENERAL MUNICIPAL LAW PRIOR TO APRIL FIRST, TWO THOU-
SAND NINE, IN ORDER FOR AN EXEMPTION UNDER SUBDIVISION  (Z)  OF  SECTION
ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER OR THE CREDIT OR REFUND DESCRIBED
IN SUBDIVISION (D) OF SECTION ELEVEN HUNDRED NINETEEN OF THIS CHAPTER OR
ANY LIKE EXEMPTION OR CREDIT OR REFUND IMPOSED PURSUANT TO THE AUTHORITY
OF ARTICLE TWENTY-NINE OF THIS CHAPTER TO APPLY WITH RESPECT TO A QUALI-
FIED  EMPIRE ZONE ENTERPRISE, SUCH ENTERPRISE SHALL APPLY TO THE COMMIS-
SIONER OF TAXATION AND FINANCE FOR THE ISSUANCE OF  A  QUALIFIED  EMPIRE
ZONE  ENTERPRISE  CERTIFICATION  IN THE MANNER PRESCRIBED BY THE COMMIS-
SIONER. IF SUCH COMMISSIONER GRANTS  SUCH  CERTIFICATION,  SUCH  CERTIF-
ICATION  SHALL  BE SUBJECT TO CONDITIONS SPECIFIED BY SUCH COMMISSIONER.
NOTHING HEREIN OR IN ANY OTHER LAW SHALL BE CONSTRUED  TO  PROHIBIT  THE
DISCLOSURE,  IN  SUCH MANNER AS THE COMMISSIONER OF TAXATION AND FINANCE
DEEMS APPROPRIATE, OF THE NAMES AND OTHER APPROPRIATE IDENTIFYING INFOR-
MATION OF THOSE PERSONS HOLDING  QUALIFIED  EMPIRE  ZONE  CERTIFICATIONS
PURSUANT  TO THIS SUBDIVISION, THOSE PERSONS WHOSE QUALIFIED EMPIRE ZONE
ENTERPRISE CERTIFICATIONS HAVE BEEN REVOKED OR PERSONS  WHOSE  QUALIFIED
EMPIRE  ZONE  ENTERPRISE  CERTIFICATIONS  HAVE EXPIRED. THE COMMISSIONER
SHALL NOT GRANT ANY CERTIFICATIONS PURSUANT TO  THIS  SUBDIVISION  AFTER
JUNE THIRTIETH, TWO THOUSAND TEN.
  (2)  A BUSINESS ENTERPRISE, CERTIFIED AS AN EMPIRE ZONE BUSINESS UNDER
ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW PRIOR  TO  APRIL  FIRST,
TWO  THOUSAND  NINE, AND CERTIFIED AS A QUALIFIED EMPIRE ZONE ENTERPRISE
BY THE COMMISSIONER OF TAXATION AND FINANCE PRIOR TO AUGUST  FIRST,  TWO
THOUSAND  NINE, IS ELIGIBLE TO CLAIM THE EXEMPTION UNDER SUBDIVISION (Z)
OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER OR ANY LIKE  EXEMPTION
FROM  TAX  IMPOSED  PURSUANT  TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF
THIS CHAPTER UNTIL SEPTEMBER FIRST, TWO THOUSAND NINE, PROVIDED THAT THE
OTHER REQUIREMENTS OF THE STATUTE ARE MET. A BUSINESS ENTERPRISE  CERTI-
FIED  AS AN EMPIRE ZONE BUSINESS UNDER ARTICLE EIGHTEEN-B OF THE GENERAL
MUNICIPAL LAW PRIOR TO APRIL FIRST, TWO THOUSAND NINE, AND CERTIFIED  AS
A  QUALIFIED  EMPIRE ZONE ENTERPRISE BY THE COMMISSIONER OF TAXATION AND
FINANCE AS OF OR PRIOR TO JUNE THIRTIETH, TWO THOUSAND TEN, IS  ELIGIBLE
TO  CLAIM  THE  CREDIT OR REFUND UNDER SUBDIVISION (D) OF SECTION ELEVEN
HUNDRED NINETEEN OF THIS CHAPTER OR ANY LIKE CREDIT  OR  REFUND  IMPOSED
PURSUANT  TO  THE  AUTHORITY  OF  ARTICLE  TWENTY-NINE  OF THIS CHAPTER,
PROVIDED THAT THE OTHER REQUIREMENTS OF THE STATUTE ARE MET  DURING  THE
TERM OF ITS SALES AND USE TAX BENEFIT PERIOD NOTWITHSTANDING THE EXPIRA-
TION OF THE EMPIRE ZONES PROGRAM UNDER ARTICLE EIGHTEEN-B OF THE GENERAL
MUNICIPAL LAW.
  (3) DURING THE PERIOD THAT A BUSINESS ENTERPRISE IS ELIGIBLE TO APPLY,
OR IS QUALIFIED, FOR AN EXEMPTION OR A CREDIT OR REFUND OF THE SALES AND
COMPENSATING  USE TAXES UNDER THIS SECTION, THE COMMISSIONER OF ECONOMIC
DEVELOPMENT SHALL, AT THE TIME SUCH COMMISSIONER CERTIFIES  OR  DECERTI-
FIES  A  BUSINESS  ENTERPRISE  UNDER  ARTICLE  EIGHTEEN-B OF THE GENERAL
MUNICIPAL LAW, NOTIFY THE COMMISSIONER OF TAXATION AND FINANCE  OF  SUCH
CERTIFICATION  OR  DECERTIFICATION, WHICH NOTIFICATION SHALL INCLUDE THE
FULL LEGAL NAME, ADDRESS AND FEDERAL EMPLOYER IDENTIFICATION  NUMBER  OF
SUCH  ENTERPRISE. THE COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL, AT THE
TIME OF ANY SUCH CERTIFICATION,  ALSO  ADVISE  SUCH  ENTERPRISE  OF  THE
REQUIREMENTS IN PARAGRAPH ONE OF THIS SUBDIVISION.
  S  13.  Subdivision  (e)  of  section 15 of the tax law, as amended by
chapter 161 of the laws of 2005, is amended to read as follows:

S. 6610--B                         30                         A. 9710--C

  (e) Eligible real property taxes. The  term  "eligible  real  property
taxes"  means  taxes imposed on real property which is owned by the QEZE
and located in an empire zone with respect to which the QEZE  is  certi-
fied  pursuant  to  article  eighteen-B  of  the  general municipal law,
provided  such taxes are paid by the QEZE which is the owner of the real
property or are paid by a tenant which either  (i)  does  not  meet  the
eligibility  requirements under section fourteen of this article to be a
QEZE or (ii) cannot treat such payment as eligible real  property  taxes
pursuant  to  this  paragraph  and  such taxes become a lien on the real
property during a taxable year in which the owner of the  real  property
is  both certified pursuant to article eighteen-B of the general munici-
pal law and a qualified empire zone enterprise.   FOR PURPOSES  OF  THIS
SUBDIVISION, THE TERM "TAX" MEANS A CHARGE IMPOSED UPON REAL PROPERTY BY
OR  ON  BEHALF  OF  A COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT FOR
MUNICIPAL OR SCHOOL DISTRICT  PURPOSES,  PROVIDED  THAT  THE  CHARGE  IS
LEVIED  FOR  THE GENERAL PUBLIC WELFARE BY THE PROPER TAXING AUTHORITIES
AT A LIKE RATE AGAINST ALL PROPERTY IN THE  TERRITORY  OVER  WHICH  SUCH
AUTHORITIES  HAVE JURISDICTION, AND PROVIDED THAT WHERE TAXES ARE LEVIED
PURSUANT TO ARTICLE EIGHTEEN OR ARTICLE NINETEEN OF  THE  REAL  PROPERTY
TAX  LAW,  THE  PROPERTY MUST HAVE BEEN TAXED AT THE RATE DETERMINED FOR
THE CLASS IN WHICH IT IS CONTAINED, AS PROVIDED BY SUCH ARTICLE EIGHTEEN
OR NINETEEN, WHICHEVER IS APPLICABLE. THE TERM "TAX" DOES NOT INCLUDE  A
CHARGE  FOR LOCAL BENEFITS, INCLUDING ANY PORTION OF THAT CHARGE THAT IS
PROPERLY ALLOCATED TO THE COSTS ATTRIBUTABLE TO MAINTENANCE OR INTEREST,
WHEN (1) THE PROPERTY SUBJECT TO THE CHARGE IS LIMITED TO  THE  PROPERTY
THAT BENEFITS FROM THE CHARGE, OR (2) THE AMOUNT OF THE CHARGE IS DETER-
MINED  BY  THE  BENEFIT TO THE PROPERTY ASSESSED, OR (3) THE IMPROVEMENT
FOR WHICH THE CHARGE IS ASSESSED TENDS TO INCREASE THE  PROPERTY  VALUE.
In  addition, "eligible real property taxes" shall include taxes paid by
a QEZE which is a lessee of real property if  the  following  conditions
are  satisfied:    (1)  the taxes must be paid by the lessee pursuant to
explicit requirements in a written lease executed or amended on or after
June first, two thousand five, (2) such taxes become a lien on the  real
property  during a taxable year in which the lessee of the real property
is both certified pursuant to article eighteen-B of the general  munici-
pal  law  and a qualified empire zone enterprise, and (3) the lessee has
made direct payment of such  taxes  to  the  taxing  authority  and  has
received  a receipt for such payment of taxes from the taxing authority.
In addition, the term "eligible real property taxes"  includes  payments
in  lieu of taxes made by the QEZE to the state, a municipal corporation
or a public benefit corporation pursuant to a written agreement  entered
into  between  the  QEZE and the state, municipal corporation, or public
benefit corporation. Provided, however, a payment in lieu of taxes  made
by  the  QEZE  pursuant to a written agreement executed or amended on or
after January first, two thousand one,  shall  not  constitute  eligible
real  property taxes in any taxable year to the extent that such payment
exceeds the product of (A) the greater of  (i)  the  basis  for  federal
income  tax  purposes, calculated without regard to depreciation, deter-
mined as of the effective date of the QEZE's certification  pursuant  to
article  eighteen-B  of  the  general  municipal  law  of real property,
including buildings and structural components of buildings, owned by the
QEZE and located in empire zones with  respect  to  which  the  QEZE  is
certified  pursuant  to such article eighteen-B of the general municipal
law, and provided that if such basis  is  further  adjusted  or  reduced
pursuant  to  any  provision  of the internal revenue code, the QEZE may
petition the department, the department of economic development and  the

S. 6610--B                         31                         A. 9710--C

office  of real property services to disregard such reduction or adjust-
ment for the purpose of this subdivision or (ii) the basis  for  federal
income  tax  purposes  of  such real property described in clause (i) of
this  subparagraph,  calculated  without  regard to depreciation, on the
last day of the taxable year, and provided that if such basis is further
adjusted or reduced pursuant to any provision of  the  internal  revenue
code,  the  QEZE may petition the department, the department of economic
development and the office of real property services to  disregard  such
reduction or adjustment for the purpose of this subdivision; and (B) the
estimated  effective full value tax rate within the county in which such
property is located, as most recently reported to  the  commissioner  by
the  secretary  of  the state board of real property services, or his or
her designee. The state board shall annually calculate estimated  effec-
tive full value tax rates within each county for this purpose based upon
the  most  current  information  available  to it in relation to county,
city, town, village and school district taxes.
  S 14. Subdivision 20 of section 210 of  the  tax  law  is  amended  by
adding a new paragraph (f) to read as follows:
  (F)  IF  THE  DESIGNATION OF AN AREA AS AN EMPIRE ZONE IS NO LONGER IN
EFFECT BECAUSE THE DESIGNATIONS OF ALL EMPIRE ZONES PURSUANT TO  ARTICLE
EIGHTEEN-B  OF  THE  GENERAL MUNICIPAL LAW HAVE EXPIRED, A TAXPAYER THAT
HAS MADE A CONTRIBUTION OF  MONEY  ON  OR  BEFORE  THE  DAY  IMMEDIATELY
PRECEDING  THE  DAY  THE EMPIRE ZONES EXPIRED TO A COMMUNITY DEVELOPMENT
PROJECT APPROVED BY THE COMMISSIONER OF ECONOMIC  DEVELOPMENT  SHALL  BE
DEEMED  ELIGIBLE  TO CLAIM THE EMPIRE ZONE CAPITAL CREDIT UNDER SUBPARA-
GRAPH THREE OF PARAGRAPH (A) OF THIS SUBDIVISION FOR ADDITIONAL CONTRIB-
UTIONS MADE PRIOR TO APRIL FIRST, TWO THOUSAND FOURTEEN AND CERTIFIED BY
THE COMMISSIONER OF ECONOMIC DEVELOPMENT TO THAT  COMMUNITY  DEVELOPMENT
PROJECT AS PAYMENT OF A COMMITMENT MADE BY THE TAXPAYER TO THAT COMMUNI-
TY DEVELOPMENT PROJECT BEFORE THE EMPIRE ZONES EXPIRED.
  S  15.  Subsection  (l)  of  section  606 of the tax law is amended by
adding a new paragraph 5 to read as follows:
  (5) IF THE DESIGNATION OF AN AREA AS AN EMPIRE ZONE IS  NO  LONGER  IN
EFFECT  BECAUSE THE DESIGNATIONS OF ALL EMPIRE ZONES PURSUANT TO ARTICLE
EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW HAVE EXPIRED,  A  TAXPAYER  THAT
HAS  MADE  A  CONTRIBUTION  OF  MONEY  ON  OR BEFORE THE DAY IMMEDIATELY
PRECEDING THE DAY THE EMPIRE ZONES EXPIRED TO  A  COMMUNITY  DEVELOPMENT
PROJECT  APPROVED  BY  THE COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL BE
DEEMED ELIGIBLE TO CLAIM THE EMPIRE ZONE CAPITAL CREDIT  UNDER  SUBPARA-
GRAPH  (C)  OF  PARAGRAPH ONE OF THIS SUBSECTION FOR ADDITIONAL CONTRIB-
UTIONS MADE PRIOR TO APRIL FIRST, TWO THOUSAND FOURTEEN AND CERTIFIED BY
THE COMMISSIONER OF ECONOMIC DEVELOPMENT TO THAT  COMMUNITY  DEVELOPMENT
PROJECT AS PAYMENT OF A COMMITMENT MADE BY THE TAXPAYER TO THAT COMMUNI-
TY DEVELOPMENT PROJECT BEFORE THE EMPIRE ZONES EXPIRED.
  S  16.  Subsection  (d)  of  section 1456 of the tax law is amended by
adding a new paragraph 5 to read as follows:
  (5) IF THE DESIGNATION OF AN AREA AS AN EMPIRE ZONE IS  NO  LONGER  IN
EFFECT  BECAUSE THE DESIGNATIONS OF ALL EMPIRE ZONES PURSUANT TO ARTICLE
EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW HAVE EXPIRED,  A  TAXPAYER  THAT
HAS  MADE  A  CONTRIBUTION  OF  MONEY  ON  OR BEFORE THE DAY IMMEDIATELY
PRECEDING THE DAY THE EMPIRE ZONES EXPIRED TO  A  COMMUNITY  DEVELOPMENT
PROJECT  APPROVED  BY  THE COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL BE
DEEMED ELIGIBLE TO CLAIM THE EMPIRE ZONE CAPITAL CREDIT  UNDER  SUBPARA-
GRAPH  (C)  OF  PARAGRAPH ONE OF THIS SUBSECTION FOR ADDITIONAL CONTRIB-
UTIONS MADE PRIOR TO APRIL FIRST, TWO THOUSAND FOURTEEN AND CERTIFIED BY
THE COMMISSIONER OF ECONOMIC DEVELOPMENT TO THAT  COMMUNITY  DEVELOPMENT

S. 6610--B                         32                         A. 9710--C

PROJECT AS PAYMENT OF A COMMITMENT MADE BY THE TAXPAYER TO THAT COMMUNI-
TY DEVELOPMENT PROJECT BEFORE THE EMPIRE ZONES EXPIRED.
  S  17.  Subdivision  (h)  of section 1511 of the tax law is amended by
adding a new paragraph 5 to read as follows:
  (5) IF THE DESIGNATION OF AN AREA AS AN EMPIRE ZONE IS  NO  LONGER  IN
EFFECT  BECAUSE THE DESIGNATIONS OF ALL EMPIRE ZONES PURSUANT TO ARTICLE
EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW HAVE EXPIRED,  A  TAXPAYER  THAT
HAS  MADE  A  CONTRIBUTION  OF  MONEY  ON  OR BEFORE THE DAY IMMEDIATELY
PRECEDING THE DAY THE EMPIRE ZONES EXPIRED TO  A  COMMUNITY  DEVELOPMENT
PROJECT  APPROVED  BY  THE COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL BE
DEEMED ELIGIBLE TO CLAIM THE EMPIRE ZONE CAPITAL CREDIT  UNDER  SUBPARA-
GRAPH  (C)  OF PARAGRAPH ONE OF THIS SUBDIVISION FOR ADDITIONAL CONTRIB-
UTIONS MADE PRIOR TO APRIL FIRST, TWO THOUSAND FOURTEEN AND CERTIFIED BY
THE COMMISSIONER OF ECONOMIC DEVELOPMENT TO THAT  COMMUNITY  DEVELOPMENT
PROJECT AS PAYMENT OF A COMMITMENT MADE BY THE TAXPAYER TO THAT COMMUNI-
TY DEVELOPMENT PROJECT BEFORE THE EMPIRE ZONES EXPIRED.
  S 18. This act shall take effect immediately, provided that the amend-
ments  to  section 14 of the tax law, made by section twelve of this act
shall take effect immediately and be deemed to have been in  full  force
and  effect  on April 1, 2009; and provided, however, that section thir-
teen of this act shall take effect immediately and apply to all  taxable
years  beginning on or after January 1, 2010 and, except with respect to
maintenance or interest charges, to all  taxable  years  for  which  the
statute  of limitations for seeking a refund or assessing additional tax
are still open.

                                 PART S

  Section 1. This act enacts into law major  components  of  legislation
relating  to  tax  enforcement,  sales  tax  avoidance and statements of
industrial  agencies  and  their  agents.    Each  component  is  wholly
contained  within  a  Subpart  identified  as  Subparts A through C. The
effective date for  each  particular  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 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 Subpart in which it
is found. Section three of this act sets  forth  the  general  effective
date of this act.

                                SUBPART A

  Section  1. The tax law is amended by adding two new sections 1808 and
1809 to read as follows:
  S 1808. PERSONAL INCOME AND EARNINGS TAXES; REPEATED FAILURE TO  FILE.
(A)  ANY  PERSON  WHO,  WITH  INTENT TO EVADE PAYMENT OF ANY TAX IMPOSED
UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER OR ANY RELATED INCOME OR  EARN-
INGS  TAX  STATUTE, FAILS TO FILE A RETURN FOR THREE CONSECUTIVE TAXABLE
YEARS SHALL BE GUILTY OF A CLASS E FELONY, PROVIDED THAT SUCH PERSON HAD
AN UNPAID TAX LIABILITY WITH RESPECT TO EACH OF  THE  THREE  CONSECUTIVE
TAXABLE YEARS.
  (B)  IN  ANY  PROSECUTION  FOR  A VIOLATION OF SUBDIVISION (A) OF THIS
SECTION, IT SHALL BE A DEFENSE THAT THE  DEFENDANT  HAD  NO  UNPAID  TAX
LIABILITY FOR ANY OF THE THREE CONSECUTIVE TAXABLE YEARS.

S. 6610--B                         33                         A. 9710--C

  (C) AS USED IN THIS SUBDIVISION, THE TERM "RETURN" SHALL MEAN A RETURN
REQUIRED  UNDER  SECTION  SIX HUNDRED FIFTY-ONE OF THIS CHAPTER, SECTION
11-1751 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW  YORK  OR  SECTION
92-85  OR  92-105 OF THE CODES AND ORDINANCES OF THE CITY OF YONKERS. IT
SHALL  NOT  INCLUDE ANY INFORMATION RETURN REFERRED TO IN SUBSECTION (I)
OF SECTION SIX HUNDRED FIFTY-ONE OF THIS CHAPTER, OR SUBDIVISION (I)  OF
SECTION  11-1751  OF  SUCH CODE, OR SUBDIVISION (G) OF SECTION 92-105 OF
SUCH CODES AND ORDINANCES, OR SECTION SIX HUNDRED  FIFTY-EIGHT  OF  THIS
CHAPTER  OR SECTION 11-1758 OF SUCH CODE OR SECTION 92-111 OF SUCH CODES
AND ORDINANCES, OR ANY EMPLOYER'S RETURN REQUIRED BY SECTION SIX HUNDRED
SEVENTY-FOUR OF THIS CHAPTER OR SECTION 11-1774 OF SUCH CODE.
  S 1809. CORPORATE TAXES; REPEATED FAILURE TO FILE. (A) ANY PERSON WHO,
WITH INTENT TO EVADE PAYMENT OF  ANY  TAX  IMPOSED  UNDER  ARTICLE  NINE
(OTHER THAN UNDER SECTION ONE HUNDRED EIGHTY OR ONE HUNDRED EIGHTY-ONE),
NINE-A,  THIRTEEN,  THIRTY-TWO,  THIRTY-THREE  OR THIRTY-THREE-A OF THIS
CHAPTER, FAILS TO FILE A RETURN OR REPORT FOR THREE CONSECUTIVE  TAXABLE
YEARS SHALL BE GUILTY OF A CLASS E FELONY, PROVIDED THAT SUCH PERSON HAD
AN  UNPAID TAX LIABILITY, IN EXCESS OF THE THRESHOLD AMOUNT WITH RESPECT
TO EACH OF THE THREE CONSECUTIVE TAXABLE YEARS. THE THRESHOLD AMOUNT  IN
THE  CASE  OF A TAXABLE YEAR UNDER ARTICLE NINE-A OF THIS CHAPTER ENDING
AFTER JUNE THIRTIETH, NINETEEN HUNDRED  EIGHTY-NINE  IS  THE  APPLICABLE
FIXED  DOLLAR  MINIMUM PRESCRIBED UNDER PARAGRAPH (D) OF SUBDIVISION ONE
OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.  IN  THE  EVENT  SUCH  FIXED
DOLLAR  MINIMUM  IS  LESS  THAN TWO HUNDRED FIFTY DOLLARS, THE THRESHOLD
AMOUNT IN THE CASE OF SUCH TAXABLE YEAR IS TWO HUNDRED FIFTY DOLLARS. IN
ALL OTHER CASES THE THRESHOLD AMOUNT IS TWO HUNDRED FIFTY DOLLARS.
  (B) IN ANY PROSECUTION FOR A VIOLATION  OF  SUBDIVISION  (A)  OF  THIS
SECTION,  IT  SHALL  BE  A  DEFENSE THAT THE DEFENDANT HAD NO UNPAID TAX
LIABILITY FOR ANY OF THE THREE CONSECUTIVE TAXABLE YEARS.
  (C) AS USED IN THIS SECTION, THE TERMS  "RETURN"  AND  "REPORT"  SHALL
MEAN  A  RETURN OR REPORT REQUIRED UNDER SECTION ONE HUNDRED NINETY-TWO,
TWO HUNDRED ELEVEN, TWO HUNDRED NINETY-FOUR, FOURTEEN HUNDRED SIXTY-TWO,
FIFTEEN HUNDRED FIFTEEN OR FIFTEEN HUNDRED FIFTY-FOUR OF  THIS  CHAPTER.
IT  SHALL  NOT  INCLUDE  ANY RETURN OR REPORT REFERRED TO IN SECTION ONE
HUNDRED NINETY-SEVEN-A, TWO HUNDRED THIRTEEN-A, FOURTEEN  HUNDRED  SIXTY
OR FIFTEEN HUNDRED THIRTEEN OF THIS CHAPTER.
  S  2.  Paragraph (b) of subdivision 3-a of section 170 of the tax law,
as amended by section 1 of subpart C of part V-1 of chapter  57  of  the
laws of 2009, is 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.  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, 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. The commissioner shall notify the division of tax
appeals when any person requests a conference or requests to discontinue
such conference.
  S  3.  Paragraph (h) of subdivision 3-a of section 170 of the tax law,
as added by section 2 of subpart C of part V-1 of chapter 57 of the laws
of 2009, is amended to read as follows:

S. 6610--B                         34                         A. 9710--C

  (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
other  credential issued under the authority of this chapter EXCLUDING A
CERTIFICATE OF REGISTRATION  OF  A  RETAIL  DEALER  UNDER  SECTION  FOUR
HUNDRED  EIGHTY-A 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 FOR REGISTRATION AS A
RETAIL DEALER UNDER SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER AND 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] THE MAILING of that notice.
  S  4.  Paragraphs  (a) and (b) of subdivision 2 of section 2008 of the
tax law, as added by section 3 of subpart C of part V-1 of chapter 57 of
the laws of 2009, are amended to read as follows:
  (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 EXCLUDING A CERTIFICATE OF REGISTRATION OF A RETAIL DEALER UNDER
SECTION FOUR HUNDRED EIGHTY-A 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  FOR
REGISTRATION  AS  A RETAIL DEALER UNDER SECTION FOUR HUNDRED EIGHTY-A OF
THIS CHAPTER AND an application to  renew  a  certificate  of  authority
filed pursuant to paragraph five of subdivision (a) of section one thou-
sand  one  hundred  thirty-four  of  this chapter and any other law, or,
(iii) the imposition of a fraud penalty under this chapter, must file  a
petition  with  the  division  of  tax  appeals  within  thirty  days of
[receipt] THE MAILING 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] A PARTY that delays  the  expedited  hearing
process  will extend the time limitations imposed on the tribunal or the
administrative 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.
  S 5. Section 1807 of the tax law, as added by section 21 of subpart  I
of  part  V-1  of  chapter 57 of the laws of 2009, is amended to read as
follows:
  S 1807. Aggregation. For purposes of this article,  the  payments  due
and  not paid under A SINGLE article [one] of this chapter pursuant to a
common scheme or plan or due and not  paid,  within  one  year,  may  be

S. 6610--B                         35                         A. 9710--C

charged  in  a  single  count, and the amount of underpaid tax liability
incurred, within one year, may be aggregated in a single count.
  S  6. Section 34 of subpart I of part V-1 of chapter 57 of the laws of
2009, amending the criminal procedure law, the penal law,  and  the  tax
law  relating  to creating the offense of "tax fraud act", is amended to
read as follows:
  S 34. This act shall take effect immediately and SECTIONS TWO  THROUGH
THIRTY-THREE  OF THIS ACT SHALL apply to offenses committed on and after
such effective date.
  S 7. This act shall take effect  immediately;  provided  however  that
section  one  of this act shall apply to offenses committed on and after
such effective date.

                                SUBPART B

  Section 1. Subparagraph (iv) of paragraph  4  of  subdivision  (b)  of
section 1101 of the tax law, as added by chapter 93 of the laws of 1965,
clause  (B)  as amended by chapter 575 of the laws of 1965 and as renum-
bered by chapter 2 of the laws of 1995, is amended to read as follows:
  (iv) (A) The term retail sale does not include:
  [(A)] (I) The transfer of tangible personal property to a corporation,
solely in consideration for the issuance of its  stock,  pursuant  to  a
merger  or consolidation effected under the law of New York or any other
jurisdiction.
  [(B)] (II) The distribution of property by a corporation to its stock-
holders as a liquidating dividend.
  [(C)] (III) The distribution of property by a partnership to its part-
ners in whole or partial liquidation.
  [(D)] (IV) The transfer of property to a corporation upon  its  organ-
ization in consideration for the issuance of its stock.
  [(E)]  (V)  The contribution of property to a partnership in consider-
ation for a partnership interest therein.
  (B) FOR AN EXCEPTION APPLICABLE TO THIS SUBPARAGRAPH, SEE  SUBDIVISION
(Q) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.
  S  2.  Paragraph 17 of subdivision (b) of section 1101 of the tax law,
as amended by section 1 of part N-1 of chapter 57 of the laws  of  2009,
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  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, offi-
cers, members, partners, managers or directors  of  affiliated  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 affil-
iated  persons  with  respect  to  each other.   FOR AN EXCEPTION TO THE
EXCLUSIONS FROM THE DEFINITION OF "RETAIL SALE" APPLICABLE TO  AIRCRAFT,
SEE SUBDIVISION (Q) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.
  S  3.  Section 1111 of the tax law is amended by adding a new subdivi-
sion (q) to read as follows:
  (Q) (1) THE EXCLUSIONS FROM THE DEFINITION OF RETAIL SALE IN  SUBPARA-
GRAPH  (IV)  OF  PARAGRAPH  FOUR  OF  SUBDIVISION  (B) OF SECTION ELEVEN
HUNDRED ONE OF THIS ARTICLE SHALL NOT APPLY TO TRANSFERS, DISTRIBUTIONS,

S. 6610--B                         36                         A. 9710--C

OR CONTRIBUTIONS OF AN AIRCRAFT OR VESSEL, EXCEPT WHERE, IN THE CASE  OF
THE  EXCLUSION IN SUBCLAUSE (I) OF CLAUSE (A) OF SUCH SUBPARAGRAPH (IV),
THE TWO CORPORATIONS TO BE MERGED OR  CONSOLIDATED  ARE  NOT  AFFILIATED
PERSONS  WITH  RESPECT TO EACH OTHER.  FOR PURPOSES OF THIS SUBDIVISION,
CORPORATIONS ARE AFFILIATED PERSONS WITH RESPECT TO EACH OTHER WHERE (I)
MORE THAN FIVE PERCENT OF THEIR COMBINED SHARES ARE OWNED BY MEMBERS  OF
THE  SAME  FAMILY,  AS  DEFINED  BY  PARAGRAPH FOUR OF SUBSECTION (C) OF
SECTION TWO HUNDRED SIXTY-SEVEN OF THE INTERNAL REVENUE CODE OF NINETEEN
HUNDRED EIGHTY-SIX; (II) ONE OF THE CORPORATIONS HAS AN OWNERSHIP INTER-
EST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN THE OTHER;
OR (III) ANOTHER PERSON OR A GROUP OF OTHER PERSONS THAT ARE  AFFILIATED
PERSONS  WITH  RESPECT  TO EACH OTHER HOLD AN OWNERSHIP INTEREST OF MORE
THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN  EACH  OF  THE  CORPO-
RATIONS.
  (2)  NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, IN RELATION TO ANY
TRANSFER, DISTRIBUTION, OR CONTRIBUTION OF AN AIRCRAFT  OR  VESSEL  THAT
QUALIFIES AS A RETAIL SALE AS A RESULT OF PARAGRAPH ONE OF THIS SUBDIVI-
SION, THE SALES TAX IMPOSED BY SUBDIVISION (A) OF SECTION ELEVEN HUNDRED
FIVE  OF  THIS  PART  SHALL  BE COMPUTED BASED ON THE PRICE AT WHICH THE
SELLER PURCHASED THE TANGIBLE PERSONAL PROPERTY, PROVIDED THAT WHERE THE
SELLER OR PURCHASER AFFIRMATIVELY SHOWS THAT THE SELLER OWNED THE  PROP-
ERTY  FOR  SIX  MONTHS  PRIOR  TO  MAKING  THE TRANSFER, DISTRIBUTION OR
CONTRIBUTION COVERED BY PARAGRAPH ONE OF THIS SUBDIVISION, SUCH AIRCRAFT
OR VESSEL SHALL BE TAXED ON THE BASIS OF THE CURRENT MARKET VALUE OF THE
AIRCRAFT OR VESSEL AT  THE  TIME  OF  THAT  TRANSFER,  DISTRIBUTION,  OR
CONTRIBUTION.  FOR  THE  PURPOSES OF THE PRIOR SENTENCE, "CURRENT MARKET
VALUE" SHALL NOT EXCEED THE COST OF THE AIRCRAFT OR VESSEL. SEE SUBDIVI-
SION (B) OF THIS SECTION FOR A SIMILAR RULE ON THE  COMPUTATION  OF  ANY
COMPENSATING  USE  TAX DUE UNDER SECTION ELEVEN HUNDRED TEN OF THIS PART
ON SUCH TRANSFERS, DISTRIBUTIONS, OR CONTRIBUTIONS.
  (3) A PURCHASER OF AN AIRCRAFT OR VESSEL COVERED BY PARAGRAPH  ONE  OF
THIS  SUBDIVISION  WILL  BE  ENTITLED  TO A REFUND OR CREDIT AGAINST THE
SALES OR COMPENSATING USE TAX DUE AS A RESULT OF  A  TRANSFER,  DISTRIB-
UTION,  OR  CONTRIBUTION OF SUCH AIRCRAFT OR VESSEL IN THE AMOUNT OF ANY
SALES OR USE TAX PAID TO THIS STATE OR ANY OTHER STATE ON  THE  SELLER'S
PURCHASE OR USE OF THE AIRCRAFT OR VESSEL SO TRANSFERRED, DISTRIBUTED OR
CONTRIBUTED,  BUT  NOT  TO  EXCEED THE TAX DUE ON THE TRANSFER, DISTRIB-
UTION, OR CONTRIBUTION OF THE AIRCRAFT OR VESSEL OR ON  THE  PURCHASER'S
USE  IN  THE STATE OF THE AIRCRAFT OR VESSEL SO TRANSFERRED, DISTRIBUTED
OR CONTRIBUTED.  AN APPLICATION FOR A REFUND OR CREDIT UNDER THIS SUBDI-
VISION MUST BE FILED AND SHALL BE IN SUCH FORM AS THE  COMMISSIONER  MAY
PRESCRIBE. WHERE AN APPLICATION FOR CREDIT HAS BEEN FILED, THE APPLICANT
MAY  IMMEDIATELY  TAKE SUCH CREDIT ON THE RETURN WHICH IS DUE COINCIDENT
WITH OR IMMEDIATELY SUBSEQUENT TO THE TIME THE APPLICATION FOR CREDIT IS
FILED. HOWEVER, THE TAKING OF THE CREDIT ON THE RETURN SHALL  BE  DEEMED
TO BE PART OF THE APPLICATION FOR CREDIT.  PROVIDED THAT THE COMMISSION-
ER  MAY,  IN  HIS  OR  HER DISCRETION AND NOTWITHSTANDING ANY OTHER LAW,
WAIVE THE APPLICATION REQUIREMENT FOR ANY  OR  ALL  CLASSES  OF  PERSONS
WHERE  THE  AMOUNT OF THE CREDIT OR REFUND IS EQUAL TO THE AMOUNT OF THE
TAX DUE FROM THE PURCHASER.  THE PROVISIONS OF  SUBDIVISIONS  (A),  (B),
AND  (C)  OF  SECTION  ELEVEN  HUNDRED THIRTY-NINE OF THIS ARTICLE SHALL
APPLY TO APPLICATIONS FOR REFUND OR CREDIT UNDER  THIS  SUBDIVISION.  NO
INTEREST  SHALL  BE ALLOWED OR PAID ON ANY REFUND MADE OR CREDIT ALLOWED
UNDER THIS SUBDIVISION. IF A REFUND IS GRANTED OR A CREDIT ALLOWED UNDER
THIS PARAGRAPH, THE SELLER OR PURCHASER SHALL  NOT  BE  ELIGIBLE  FOR  A

S. 6610--B                         37                         A. 9710--C

REFUND OR CREDIT PURSUANT TO SUBDIVISION SEVEN OF SECTION ELEVEN HUNDRED
EIGHTEEN OF THIS ARTICLE WITH REGARD TO THE SAME PURCHASE OR USE.
  S  4.  Subdivision  2  of  section  1118 of the tax law, as amended by
section 2 of part N-1 of chapter 57 of the laws of 2009, 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
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.  FOR AN EXCEPTION TO THE EXCLUSIONS FROM THE
DEFINITION  OF  "RETAIL  SALE"  APPLICABLE  TO AIRCRAFT AND VESSELS, SEE
SUBDIVISION (Q) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.
  S 5. This act shall take effect immediately 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, provided that sales or use tax paid on the seller's purchase or use
of the aircraft or vessel transferred, distributed or contributed may be
refunded or credited as authorized by the new subdivision (q) of section
1111  of  the tax law, as added by section three of this act, regardless
of the date on which the  seller  purchased  or  used  the  aircraft  or
vessel.

                                SUBPART C

  Section  1.  Section  874  of  the general municipal law is amended by
adding a new subdivision 9 to read as follows:
  (9) WITHIN THIRTY DAYS OF  THE  DATE  THAT  THE  AGENCY  DESIGNATES  A
PROJECT  OPERATOR  OR  OTHER  PERSON  TO  ACT AS AGENT OF THE AGENCY FOR
PURPOSES OF PROVIDING FINANCIAL ASSISTANCE CONSISTING OF ANY  SALES  AND
COMPENSATING  USE  TAX EXEMPTION TO SUCH PERSON, THE AGENCY SHALL FILE A
STATEMENT WITH THE DEPARTMENT OF TAXATION AND FINANCE RELATING  THERETO,
ON  A  FORM  AND  IN SUCH MANNER AS IS PRESCRIBED BY THE COMMISSIONER OF
TAXATION AND FINANCE, IDENTIFYING EACH SUCH AGENT SO NAMED BY THE  AGEN-
CY, SETTING FORTH THE TAXPAYER IDENTIFICATION NUMBER OF EACH SUCH AGENT,
GIVING  A  BRIEF DESCRIPTION OF THE PROPERTY AND/OR SERVICES INTENDED TO
BE EXEMPTED FROM SUCH TAXES AS A RESULT OF SUCH  APPOINTMENT  AS  AGENT,
INDICATING  THE  AGENCY'S  ROUGH  ESTIMATE  OF THE VALUE OF THE PROPERTY

S. 6610--B                         38                         A. 9710--C

AND/OR SERVICES TO WHICH SUCH APPOINTMENT AS AGENT  RELATES,  INDICATING
THE  DATE WHEN SUCH DESIGNATION AS AGENT BECAME EFFECTIVE AND INDICATING
THE DATE UPON WHICH SUCH DESIGNATION AS AGENT SHALL CEASE.
  S  2.  Section 1963 of the public authorities law is amended by adding
two new subdivisions 3 and 4 to read as follows:
  3. AGENTS OF THE AUTHORITY AND PROJECT OPERATORS SHALL ANNUALLY FILE A
STATEMENT WITH THE DEPARTMENT OF TAXATION AND FINANCE, ON A FORM AND  IN
SUCH  A  MANNER  AS  IS  PRESCRIBED  BY THE COMMISSIONER OF TAXATION AND
FINANCE, OF THE VALUE OF ALL SALES AND USE  TAX  EXEMPTIONS  CLAIMED  BY
SUCH  AGENTS  OR  AGENTS OF SUCH AGENTS OR PROJECT OPERATORS, INCLUDING,
BUT NOT LIMITED TO, CONSULTANTS OR  SUBCONTRACTORS  OF  SUCH  AGENTS  OR
PROJECT OPERATORS, UNDER THE AUTHORITY GRANTED PURSUANT TO THIS SECTION.
THE  PENALTY  FOR FAILURE TO FILE SUCH STATEMENT SHALL BE THE REMOVAL OF
THE AUTHORITY TO ACT AS AN AGENT OF THE AUTHORITY OR AS A PROJECT OPERA-
TOR.
  4. WITHIN THIRTY DAYS OF THE DATE  THAT  THE  AUTHORITY  DESIGNATES  A
PROJECT  OPERATOR  OR  OTHER PERSON TO ACT AS AGENT OF THE AUTHORITY FOR
PURPOSES OF PROVIDING FINANCIAL ASSISTANCE CONSISTING OF ANY  SALES  AND
COMPENSATING  USE  TAX EXEMPTION TO SUCH PERSON, THE AGENCY SHALL FILE A
STATEMENT WITH THE DEPARTMENT OF TAXATION AND FINANCE RELATING  THERETO,
ON  A  FORM  AND  IN SUCH MANNER AS IS PRESCRIBED BY THE COMMISSIONER OF
TAXATION AND FINANCE, IDENTIFYING  EACH  SUCH  AGENT  SO  NAMED  BY  THE
AUTHORITY, SETTING FORTH THE TAXPAYER IDENTIFICATION NUMBER OF EACH SUCH
AGENT,  GIVING  A  BRIEF  DESCRIPTION  OF  THE  PROPERTY AND/OR SERVICES
INTENDED TO BE EXEMPTED FROM SUCH TAXES AS A RESULT OF SUCH  APPOINTMENT
AS  AGENT, INDICATING THE AUTHORITY'S ROUGH ESTIMATE OF THE VALUE OF THE
PROPERTY AND/OR SERVICES TO WHICH SUCH  APPOINTMENT  AS  AGENT  RELATES,
INDICATING  THE DATE WHEN SUCH DESIGNATION AS AGENT BECAME EFFECTIVE AND
INDICATING THE DATE UPON WHICH SUCH DESIGNATION AS AGENT SHALL CEASE.
  S 3. Section 2326 of the public authorities law is amended  by  adding
two new subdivisions 3 and 4 to read as follows:
  3. AGENTS OF THE AUTHORITY AND PROJECT OPERATORS SHALL ANNUALLY FILE A
STATEMENT  WITH THE DEPARTMENT OF TAXATION AND FINANCE, ON A FORM AND IN
SUCH A MANNER AS IS PRESCRIBED  BY  THE  COMMISSIONER  OF  TAXATION  AND
FINANCE,  OF  THE  VALUE  OF ALL SALES AND USE TAX EXEMPTIONS CLAIMED BY
SUCH AGENTS OR AGENTS OF SUCH AGENTS OR  PROJECT  OPERATORS,  INCLUDING,
BUT  NOT  LIMITED  TO,  CONSULTANTS  OR SUBCONTRACTORS OF SUCH AGENTS OR
PROJECT OPERATORS, UNDER THE AUTHORITY GRANTED PURSUANT TO THIS SECTION.
THE PENALTY FOR FAILURE TO FILE SUCH STATEMENT SHALL BE THE  REMOVAL  OF
THE AUTHORITY TO ACT AS AN AGENT OF THE AUTHORITY OR AS A PROJECT OPERA-
TOR.
  4.  WITHIN  THIRTY  DAYS  OF  THE DATE THAT THE AUTHORITY DESIGNATES A
PROJECT OPERATOR OR OTHER PERSON TO ACT AS AGENT OF  THE  AUTHORITY  FOR
PURPOSES  OF  PROVIDING FINANCIAL ASSISTANCE CONSISTING OF ANY SALES AND
COMPENSATING USE TAX EXEMPTION TO SUCH PERSON, THE AGENCY SHALL  FILE  A
STATEMENT  WITH THE DEPARTMENT OF TAXATION AND FINANCE RELATING THERETO,
ON A FORM AND IN SUCH MANNER AS IS PRESCRIBED  BY  THE  COMMISSIONER  OF
TAXATION  AND  FINANCE,  IDENTIFYING  EACH  SUCH  AGENT  SO NAMED BY THE
AUTHORITY, SETTING FORTH THE TAXPAYER IDENTIFICATION NUMBER OF EACH SUCH
AGENT, GIVING A  BRIEF  DESCRIPTION  OF  THE  PROPERTY  AND/OR  SERVICES
INTENDED  TO BE EXEMPTED FROM SUCH TAXES AS A RESULT OF SUCH APPOINTMENT
AS AGENT, INDICATING THE AUTHORITY'S ROUGH ESTIMATE OF THE VALUE OF  THE
PROPERTY  AND/OR  SERVICES  TO  WHICH SUCH APPOINTMENT AS AGENT RELATES,
INDICATING THE DATE WHEN SUCH DESIGNATION AS AGENT BECAME EFFECTIVE  AND
INDICATING THE DATE UPON WHICH SUCH DESIGNATION AS AGENT SHALL CEASE.
  S 4. This act shall take effect immediately, provided, however, that:

S. 6610--B                         39                         A. 9710--C

  (a) section one of this act shall be deemed to have been in full force
and effect on and after January 31, 2008;
  (b) sections two and three of this act shall be deemed to have been in
full force and effect on and after January 1, 2010; and
  (c)  any statement of an industrial development agency or authority to
the department of taxation and finance required by this act with respect
to having appointed an agent or project operator  before  the  effective
date of this act shall be deemed timely if it is filed within 90 days of
such date.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  S 3. This act shall take effect immediately  provided,  however,  that
the  applicable effective date of Subparts A through C of this act shall
be as specifically set forth in the last section of such Subparts.

                                 PART T

  Section 1. Subsection (a) of section 951 of the tax law, as amended by
section 1 of part A of chapter 407 of the laws of 1999,  is  amended  to
read as follows:
  (a) Dates. For purposes of this article, any reference to the internal
revenue code means the United States Internal Revenue Code of 1986, with
all amendments enacted on or before July twenty-second, nineteen hundred
ninety-eight,  and, unless specifically provided otherwise in this arti-
cle, any reference to December thirty-first, nineteen  hundred  seventy-
six  or  January  first, nineteen hundred seventy-seven contained in the
provisions of such code which are applicable to the determination of the
tax imposed by this article shall be read as a reference to June thirti-
eth, nineteen hundred seventy-eight  or  July  first,  nineteen  hundred
seventy-eight,  respectively. Notwithstanding the foregoing, the unified
credit against the estate tax provided in section two  thousand  ten  of
the  internal  revenue  code shall, for purposes of this article, be the
amount [allowed by such section under  the  applicable  federal  law  in
effect on the decedent's date of death. Provided, however, the amount of
such  credit allowable for purposes of this article shall not exceed the
amount] allowable as if the federal [unified credit did not  exceed  the
tax due under section two thousand one of the internal revenue code on a
federal  taxable estate of] APPLICABLE EXCLUSION AMOUNT WERE one million
dollars.
  S 2. This act shall take effect immediately and shall apply to estates
of decedents dying on or after January 1, 2010.

                                 PART U

  Intentionally omitted.

                                 PART V

S. 6610--B                         40                         A. 9710--C

  Section 1. The article heading of article 29-A  of  the  tax  law,  as
added  by  section  1  of  part  E of chapter 25 of the laws of 2009, is
amended to read as follows:
                 TAX ON MEDALLION TAXICAB [RIDES] TRIPS
          IN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT
  S  2.  Subdivisions  (d),  (e), (f) and (h) of section 1280 of the tax
law, as added by section 1 of part E of chapter 25 of the laws of  2009,
are amended and six new subdivisions (i), (j), (k), (l), (m) and (n) are
added to read as follows:
  (d)  "Taxicab"  means a motor vehicle [carrying passengers for hire in
the city, duly] licensed by the [taxi and limousine  commission  of  the
city]  TLC  TO  CARRY  PASSENGERS FOR HIRE and [permitted] AUTHORIZED to
accept hails from prospective passengers in the street.
  (e) "Taxicab [ride] TRIP" means a taxicab [ride] TRIP provided to  one
or  more passengers [to a given destination] REGARDLESS OF THE NUMBER OF
STOPS, FOR WHICH THE TAXIMETER IS REQUIRED TO BE  IN  THE  RECORDING  OR
HIRED POSITION.
  (f)  "Taxicab  owner"  OR "OWNER" means a person [owning a taxicab and
shall include a purchaser under a reserve  title  contract,  conditional
sales  agreement or vendor's lien agreement. In addition, an owner shall
be deemed to include any lessee, licensee or bailee having the exclusive
use of a taxicab, under a lease or otherwise, for  a  period  of  thirty
days  or  more]  LICENSED  BY  THE  TLC  TO  OWN AND OPERATE A MEDALLION
TAXICAB.
  (h) "Taximeter" [shall include any device which,  when  affixed  to  a
motor vehicle, is so constructed as to operate as a fare indicator and a
time  and distance register for the purpose of automatically determining
the charge for which a passenger becomes liable] MEANS AN INSTRUMENT  OR
DEVICE  APPROVED  BY THE TLC BY WHICH THE CHARGE TO A PASSENGER FOR HIRE
OF A LICENSED TAXICAB IS AUTOMATICALLY  CALCULATED  AND  ON  WHICH  SUCH
CHARGE IS PLAINLY INDICATED.
  (I) "TLC" MEANS THE TAXI AND LIMOUSINE COMMISSION OF THE CITY.
  (J)  "AGENT"  MEANS  A  PERSON  THAT ACTS, BY EMPLOYMENT, CONTRACT, OR
OTHERWISE, ON BEHALF OF ONE OR MORE TAXICAB OWNERS TO OPERATE OR PROVIDE
FOR THE OPERATION OF A LICENSED MEDALLION TAXICAB IN ACCORDANCE WITH THE
TLC'S RULES.  "AGENT" SHALL NOT INCLUDE AN  ATTORNEY  OR  REPRESENTATIVE
WHO  APPEARS  ON  BEHALF  OF  ONE OR MORE OWNERS BEFORE THE TLC, THE TLC
HEARING TRIBUNAL, THE COMMISSIONER, OR THE NEW YORK  STATE  DIVISION  OF
TAX  APPEALS,  AND  TAXICAB DRIVERS LICENSED PURSUANT TO CHAPTER FIVE OF
TITLE NINETEEN OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW  YORK  WHEN
ACTING IN THAT CAPACITY.
  (K)  "MEDALLION"  MEANS  A  PLATE  ISSUED  BY  THE TLC AS THE PHYSICAL
EVIDENCE OF A TAXICAB LICENSE, AND AFFIXED TO THE OUTSIDE OF SUCH  TAXI-
CAB.
  (L)  "TAXICAB  LICENSE"  MEANS  THE AUTHORITY GRANTED BY THE TLC TO AN
OWNER TO OPERATE A DESIGNATED VEHICLE AS A TAXICAB IN THE CITY.
  (M) "TRIP RECORD," ALSO KNOWN AS A TRIP SHEET OR TRIP LOG,  MEANS  THE
WRITTEN,  COMPUTERIZED,  AUTOMATED OR ELECTRONIC ACCOUNTING OF A TAXICAB
RIDE.  THE TRIP DATA TO BE TRANSMITTED OR  RECORDED  SHALL  INCLUDE  THE
TAXICAB  LICENSE NUMBER (MEDALLION NUMBER); THE TAXICAB DRIVER'S LICENSE
NUMBER; THE LOCATION OF TRIP INITIATION; THE TIME  OF  TRIP  INITIATION;
THE  NUMBER OF PASSENGERS; THE LOCATION OF TRIP TERMINATION; THE TIME OF
TRIP TERMINATION;  THE  ITEMIZED  METERED  FARE  FOR  THE  TRIP  (TOLLS,
SURCHARGE, AND TIP IF PAID BY CREDIT OR DEBIT CARD); THE DISTANCE OF THE
TRIP,  THE  TRIP  NUMBER,  THE  METHOD  OF  PAYMENT, THE TOTAL NUMBER OF

S. 6610--B                         41                         A. 9710--C

PASSENGERS, AS WELL AS SUCH OTHER INFORMATION AS MAY BE REQUIRED BY  THE
TLC.
  (N)  "MEDALLION TAXICAB" MEANS A TAXICAB TO WHICH A MEDALLION HAS BEEN
AFFIXED IN ACCORDANCE WITH APPLICABLE LAW AND REGULATIONS.
  S 3. Section 1281 of the tax law, as added by section 1 of part  E  of
chapter 25 of the laws of 2009, is amended to read as follows:
  S  1281.  Imposition  of  tax. In addition to any other tax imposed by
this chapter or other law, there is  hereby  imposed  on  every  taxicab
owner  a tax of fifty cents per taxicab [ride] TRIP on every [ride] TRIP
that originates in the city and terminates anywhere within the  territo-
rial boundaries of the MCTD.
  S  4.  Section 1282 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1282. Presumption of taxability.  For  the  purpose  of  the  proper
administration of this article and to prevent evasion of the tax imposed
by  this  article,  it  shall be presumed that every taxicab [ride] TRIP
that originates in the city is subject to the tax imposed by this  arti-
cle.    This presumption shall prevail until the contrary is proven, and
the burden of proving the contrary shall be on  the  person  liable  for
[payment of the] tax.
  S  5.  Section 1283 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1283. [Special] LIABILITY FOR TAX; SPECIAL provisions. Notwithstand-
ing any [provisions] PROVISION of [this article] LAW  to  the  contrary:
(a) [If a taxicab owner subject to the tax imposed by this article leas-
es,  rents  or  otherwise furnishes a taxicab to an unrelated person who
uses the taxicab to provide taxicab rides originating in the city, then:
(1) the owner is deemed to provide such taxicab rides during the day  or
other  period that the unrelated person uses the taxicab to provide such
rides; (2) the tax imposed by this article  shall  be  imposed  on  such
owner; and (3) the owner must pay the tax imposed by this article on the
number  of  rides  subject to such tax provided by such unrelated person
during the day or other period] THE TAXICAB OWNER SHALL  BE  LIABLE  FOR
THE  TAX  IMPOSED BY THIS ARTICLE. IF THE OWNER HAS DESIGNATED AN AGENT,
THEN THE AGENT SHALL BE JOINTLY LIABLE WITH THE OWNER  FOR  THE  TAX  ON
TRIPS  OCCURRING  DURING  THE PERIOD THAT SUCH DESIGNATION IS IN EFFECT.
EVEN IF THE TLC HAS SPECIFIED THAT THE OWNER'S AGENT CANNOT  OPERATE  AS
AN AGENT, THAT AGENT SHALL BE JOINTLY LIABLE WITH THE OWNER IF THE AGENT
HAS  ACTED  FOR THE OWNER. DURING THE PERIOD THAT AN OWNER'S DESIGNATION
OF AN AGENT IS IN EFFECT, THE AGENT SHALL FILE THE RETURNS  REQUIRED  BY
THIS  ARTICLE  AND PAY ANY TAX DUE WITH SUCH RETURN, BUT THE OWNER SHALL
NOT BE RELIEVED OF LIABILITY FOR TAX, PENALTY OR INTEREST DUE UNDER THIS
ARTICLE, OR FOR THE FILING OF RETURNS REQUIRED TO BE FILED,  UNLESS  THE
AGENT HAS TIMELY FILED ACCURATE RETURNS AND TIMELY PAID THE TAX REQUIRED
TO BE PAID UNDER THIS ARTICLE. IF AN OWNER HAS DESIGNATED AN AGENT, THEN
THE  AGENT  MUST  PERFORM  ANY  ACT  THIS  ARTICLE  REQUIRES AN OWNER TO
PERFORM, BUT THE FAILURE OF SUCH AGENT TO PERFORM ANY SUCH ACT SHALL NOT
RELIEVE THE OWNER FROM THE OBLIGATION TO PERFORM SUCH ACT  OR  FROM  ANY
LIABILITY THAT MAY ARISE FROM FAILURE TO PERFORM THE ACT.
  (b) [Notwithstanding any law to the contrary:] (1) Although the tax is
imposed  on  the  taxicab owner, the [taxicab owner must pass along the]
CITY OR THE TLC SHALL ADOPT OR AMEND ORDINANCES OR REGULATIONS TO ENSURE
THAT THE economic incidence of the tax IS PASSED THROUGH to [the passen-
ger] PASSENGERS, SUCH AS by [adjusting the fare for the ride,  and  the]
INCREASING  TAXICAB TRIP FARES. THE passing along of such economic inci-
dence may not be construed by any court or administrative body as impos-

S. 6610--B                         42                         A. 9710--C

ing the tax on [the] ANY person [or entity that  pays  the  fare  for  a
ride]  OTHER THAN THE TAXICAB OWNER.  [A] THE city [that regulates taxi-
cabs or taxicab fares] OR THE TLC must adjust [the] TRIP fares  [author-
ized]  to  include therein the PASS-THROUGH OF THE ECONOMIC INCIDENCE OF
THE tax imposed by this article, as the rate of such tax may  from  time
to  time change, and must timely require that any taximeter in a taxicab
used to provide [rides] TRIPS THAT ORIGINATE in the city be adjusted  to
include the [tax] PASS-THROUGH.
  (2)  A  taxicab owner in such city must timely adjust the taximeter in
any of such person's taxicabs so that it reflects [the  tax  imposed  by
this  article]  SUCH PASS-THROUGH as such [rate] PASS-THROUGH AMOUNT may
from time to time change.
  (3) Neither the failure of such city OR THE TLC to  adjust  fares  nor
the  failure  of  a  taxicab owner OR OTHER PERSON to adjust a taximeter
will relieve any person liable for the tax imposed by this article  from
the obligation to pay such tax timely, at the correct rate.
  [(c)  For  purposes of this section, "unrelated person" means a person
other than a related person as defined for purposes of section  fourteen
of this chapter.]
  S  6.  Section 1284 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1284. Returns. Every person liable for the tax imposed by this arti-
cle shall file a return quarterly with  the  commissioner.  Each  return
shall  show  the  number  of  [rides] TRIPS in the quarter for which the
return is filed, together with such other information as the commission-
er may require. The returns required by this section shall be filed  for
quarterly  periods ending on the last day of March, June, September, and
December of each year, and each return shall be filed within twenty days
after the end of the quarterly period covered thereby. Every such person
shall also file a return with the commissioner for the period of  Novem-
ber  and  December two thousand nine, by January twentieth, two thousand
ten, containing the information described  above.  If  the  commissioner
deems  it necessary in order to ensure the payment of the tax imposed by
this article, the commissioner may require returns to be made for short-
er periods than prescribed by the foregoing provisions of this  section,
and upon such dates as the commissioner may specify. The form of returns
shall  be prescribed by the commissioner and shall contain such informa-
tion as the commissioner may deem  necessary  for  the  proper  adminis-
tration of this article. The commissioner may require amended returns to
be  filed within twenty days after notice and to contain the information
specified in the notice. The commissioner may require that  the  returns
be filed electronically.
  S  7.  Section 1285 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1285. Payment of tax. Every person required to file a  return  under
this  article  shall,  at  the  time  of  filing such return, pay to the
commissioner the total of all  tax  imposed  by  this  article,  on  the
correct  number  of [rides] TRIPS subject to tax under this article. The
amount so payable to the commissioner for the period for which a  return
is  required to be filed shall be due and payable to the commissioner on
the date limited for the filing of the return for such  period,  without
regard to whether a return is filed or whether the return which is filed
correctly shows the correct number of [rides] TRIPS or the amount of tax
due thereon. The commissioner may require that the tax be paid electron-
ically.

S. 6610--B                         43                         A. 9710--C

  S  8.  Section 1286 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S  1286. Records to be kept. (A) Every person [required to pay] LIABLE
FOR any tax imposed by this article shall keep:
  (1) records of every [ride] TAXICAB TRIP originating in the  city  and
of all amounts paid, charged or due thereon and of the tax payable ther-
eon,  in  such  form as the commissioner may require[. Every such person
shall also keep];
  (2) a true and complete copy of every contract, agreement, or arrange-
ment concerning the lease, rental, or license to use a taxicab for which
the person is required to remit the tax on [rides] TRIPS imposed by this
article on such person;
  (3) A TRUE AND COMPLETE COPY OF EVERY CONTRACT, AGREEMENT, OR ARRANGE-
MENT CONCERNING THE APPOINTMENT OF AN AGENT;
  (4) TRUE AND COMPLETE COPIES OF ANY RECORDS REQUIRED TO BE KEPT BY THE
TLC; AND
  (5) SUCH OTHER RECORDS AND INFORMATION AS THE COMMISSIONER MAY REQUIRE
TO PERFORM HIS OR HER DUTIES UNDER THIS ARTICLE.
  [Such] (B) THE records REQUIRED TO BE KEPT BY THIS  SECTION  shall  be
available  for inspection and examination at any time upon demand by the
commissioner or the commissioner's duly authorized agent or employee and
shall be preserved for a period of three years, except that the  commis-
sioner  may  consent  to  their  destruction  within  that period or may
require that they be kept longer. Such records may be  kept  within  the
meaning  of this section when reproduced on any photographic, photostat-
ic, microfilm, micro-card, miniature photographic or other process which
actually reproduces the original record. If those records are maintained
in an electronic format, they must be made available and  accessible  to
the commissioner in electronic format.
  S  9.  Subdivision  (b)  of  section  1287 of the tax law, as added by
section 1 of part E of chapter 25 of the laws of  2009,  is  amended  to
read as follows:
  (b) Notwithstanding the provisions of subdivision (a) of this section,
the  commissioner may, in his or her discretion, permit the proper offi-
cer of [a] THE city [that regulates taxicabs]  or  the  duly  authorized
representative  of  such officer, to inspect any return filed under this
article, or may furnish to such officer  or  such  officer's  authorized
representative an abstract of any such return or supply such person with
information  concerning  an  item  contained  in  any  such  return,  or
disclosed by any investigation of tax liability under this article;  but
such  permission  shall be granted or such information furnished only if
[such] THE city OR THE TLC shall have furnished  the  commissioner  with
all  information  requested by the commissioner pursuant to this article
and shall have permitted the commissioner or the commissioner's  author-
ized  representative  to  make  any inspection of any records or reports
concerning taxicabs [and their],  TAXICAB  owners  [or  operators],  AND
AGENTS filed with or possessed by such city OR THE TLC which the commis-
sioner  may have requested from such city OR THE TLC. PROVIDED, FURTHER,
THAT THE COMMISSIONER MAY DISCLOSE TO THE CITY OR THE TLC WHETHER OR NOT
A PERSON LIABLE FOR THE TAX IMPOSED BY THIS ARTICLE HAS PAID ALL OF  THE
TAX DUE UNDER THIS ARTICLE AS OF ANY GIVEN DATE.
  S  10. Section 1289 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1289. Cooperation by city. The city AND THE TLC shall cooperate with
and assist the commissioner to effect the purposes of this  article  and
the commissioner's responsibilities under this article. Such cooperation

S. 6610--B                         44                         A. 9710--C

shall  include furnishing the names, addresses and all other information
concerning every TAXICAB owner, operator, and driver of taxicabs in  the
city, AND CONCERNING EVERY AGENT AND VEHICLE OWNER, AND THE TRIP RECORDS
AND  OTHER  RECORDS  OF  ANY OF THEM, IN THE CITY'S POSSESSION OR IN THE
POSSESSION OF ANY OF ITS AGENCIES OR  INSTRUMENTALITIES,  together  with
any other information the commissioner requests, all without cost to the
commissioner.
  S  11. Section 1290 of the tax law, as added by section 1 of part E of
chapter 25 of the laws of 2009, is amended to read as follows:
  S 1290. Practice and procedure. The provisions of article twenty-seven
of this chapter shall apply with respect to the  administration  of  and
procedure  with  respect  to the tax imposed by this article in the same
manner and with the same force and effect as if  the  language  of  such
article twenty-seven had been incorporated in full into this article and
had  expressly  referred  to  the  tax under this article, except to the
extent that any such provision is either inconsistent with  a  provision
of  this article or is not relevant to this article. [Criminal penalties
provided in section one thousand eight hundred twenty  of  this  chapter
shall  apply  in the same manner and with the same force and effect with
respect to this article.]
  S 12. The tax law is amended by adding a new section 1821 to  read  as
follows:
  S  1821.  MEDALLION  TAXICAB  OWNERS  TAX IN THE METROPOLITAN COMMUTER
TRANSPORTATION DISTRICT. ANY WILLFUL ACT OR OMISSION BY ANY PERSON WHICH
CONSTITUTES A VIOLATION OF ANY PROVISION  OF  ARTICLE  TWENTY-NINE-A  OF
THIS CHAPTER SHALL CONSTITUTE A MISDEMEANOR.
  S  13.  Section  19-504  of the administrative code of the city of New
York is amended by adding a new subdivision q to read as follows:
  Q. NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, THE COMMISSION SHALL
NOT ISSUE OR RENEW A TAXICAB LICENSE UNLESS THE APPLICANT OR HOLDER,  AS
THE  CASE  MAY  BE,  AVOWS UNDER PENALTY OF PERJURY THAT SUCH PERSON HAS
FULLY  PAID  ALL  AND  ANY  TAX  IMPOSED  ON  SUCH  PERSON  BY   ARTICLE
TWENTY-NINE-A OF THE TAX LAW. THE COMMISSION MAY ASK THE COMMISSIONER OF
TAXATION  AND  FINANCE  FOR  CONFIRMATION THAT SUCH PERSON HAS PAID SUCH
TAX.  NOTHING IN THIS SUBDIVISION SHALL PREVENT A PERSON TO WHOM A TAXI-
CAB LICENSE HAS BEEN ISSUED FROM MOVING THE  MEDALLION  WHICH  EVIDENCES
THE  LICENSE  TO  A STANDBY VEHICLE IF THE TLC'S REGULATIONS PERMIT SUCH
PERSON TO DO SO.
  S 14. This act shall take effect July 1,  2010,  and  shall  apply  to
taxicab  trips  commencing  on  or  after that date; provided that:  the
provisions of article 29-A of the tax law in  existence  prior  to  that
date shall continue to apply to all liabilities accrued up to that date.

                                 PART W

  Section  1.  Subdivision  (e-1)  of  section  1132  of  the tax law is
REPEALED.
  S 2. This act shall take effect immediately and shall apply to credits
taken and refunds claimed on or after July 1, 2010.

                                 PART X

  Section 1. Paragraph 1 of subdivision (f) of section 1137 of  the  tax
law,  as  amended  by  section  1 of part H of chapter 62 of the laws of
2006, is amended to read as follows:

S. 6610--B                         45                         A. 9710--C

  (1) Except  as  otherwise  provided  in  this  subdivision,  a  person
required  to  collect  tax who files a return required to be filed under
section eleven hundred thirty-six of this part for a quarterly or longer
period shall be allowed a credit against the taxes and fees required  to
be  reported  on, and paid with, such return, in an amount as determined
in paragraph two of this subdivision, but only where such  person  files
the  return  on or before the filing due date and pays or pays over with
such return the total amount  shown  on  such  return  (determined  with
regard  to this subdivision); PROVIDED, HOWEVER, THAT NO CREDIT PURSUANT
TO THIS SUBDIVISION SHALL BE ALLOWED FOR ANY  PERSON  WHO  FILES  OR  IS
REQUIRED  TO  FILE A RETURN PURSUANT TO PARAGRAPH TWO OF SUBDIVISION (A)
OF SECTION ELEVEN HUNDRED THIRTY-SIX OF THIS PART OR ANY PERSON WHO PAYS
OR IS REQUIRED TO PAY TAX PURSUANT TO SECTION TEN OF THIS CHAPTER.
  S 2. This act shall take effect June 1, 2010; and shall apply to quar-
terly periods, as described in subdivision (b) of section eleven hundred
thirty-six of the tax law, beginning on or after such date.

                                 PART Y

  Section 1. The tax law is amended by adding a new section 33  to  read
as follows:
  S  33.  TEMPORARY DEFERRAL OF CERTAIN TAX CREDITS.  1. (A) FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN  AND  BEFORE
JANUARY  FIRST,  TWO  THOUSAND  THIRTEEN,  THE  EXCESS  OVER TWO MILLION
DOLLARS OF THE TOTAL AMOUNT OF THE TAX CREDITS SPECIFIED IN  SUBDIVISION
THREE  OF  THIS SECTION THAT IN EACH OF THOSE TAXABLE YEARS WOULD OTHER-
WISE BE USED TO REDUCE THE TAXPAYER'S TAX LIABILITY TO THE AMOUNT OTHER-
WISE SPECIFIED IN THIS CHAPTER OR BE REFUNDED OR CREDITED AS AN OVERPAY-
MENT WILL BE DEFERRED TO AND USED OR REFUNDED IN TAXABLE YEARS BEGINNING
ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN IN ACCORDANCE WITH  THE
PROVISIONS OF SECTION THIRTY-FOUR OF THIS ARTICLE. INTEREST SHALL NOT BE
PAID ON THE AMOUNTS OF CREDIT DEFERRED.
  (B) TO DETERMINE THE AMOUNT OF EACH TAX CREDIT ALLOWED FOR THE TAXABLE
YEAR  TO  BE  USED,  REFUNDED OR CREDITED AS AN OVERPAYMENT THE TAXPAYER
SHALL MULTIPLY THE AMOUNT OF EACH CREDIT SUBJECT TO DEFERRAL THAT  WOULD
HAVE BEEN USED, REFUNDED OR CREDITED AS AN OVERPAYMENT IN THE ABSENCE OF
THIS  SECTION  BY  A  FRACTION,  THE  NUMERATOR  OF WHICH IS TWO MILLION
DOLLARS, AND THE DENOMINATOR OF WHICH IS THE TOTAL AMOUNT OF THE TAXPAY-
ER'S CREDITS SUBJECT TO DEFERRAL PURSUANT TO SUBDIVISION THREE  OF  THIS
SECTION  THAT  WOULD HAVE BEEN USED, REFUNDED OR CREDITED AS AN OVERPAY-
MENT FOR THE TAXABLE YEAR IN THE ABSENCE OF THIS SECTION. THE PRODUCT IS
THE AMOUNT OF SUCH CREDIT THAT IS  NOT  SUBJECT  TO  DEFERRAL  AND  THUS
ALLOWED TO BE USED, REFUNDED OR CREDITED AS AN OVERPAYMENT FOR THE TAXA-
BLE YEAR.
  2.  TAXPAYERS  SHALL  CALCULATE  AND  MAKE  ANY ESTIMATED TAX PAYMENTS
REQUIRED TO BE MADE BY TAKING  INTO  ACCOUNT  THE  DEFERRAL  OF  CREDITS
REQUIRED  BY THIS SECTION. TAXPAYERS SHALL CALCULATE ANY MANDATORY FIRST
INSTALLMENT PAYMENTS MADE ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION
AS IF THE DEFERRAL OF CREDITS REQUIRED  BY  THIS  SECTION  HAD  BEEN  IN
EFFECT  FOR  THE  TAXABLE  YEAR UPON WHICH THAT INSTALLMENT IS BASED. IN
ADDITION, FOR TAXABLE YEARS BEGINNING ON OR  AFTER  JANUARY  FIRST,  TWO
THOUSAND TEN AND BEFORE JANUARY FIRST, TWO THOUSAND ELEVEN, (A) NO ADDI-
TION  TO  TAX UNDER SUBSECTION (C) OF SECTION SIX HUNDRED EIGHTY-FIVE OF
THIS CHAPTER OR SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-FIVE  OF
THIS CHAPTER SHALL BE IMPOSED WITH RESPECT TO ANY UNDERPAYMENT ATTRIBUT-
ABLE  TO  THE  DEFERRAL  REQUIRED BY THIS SECTION OF ANY ESTIMATED TAXES

S. 6610--B                         46                         A. 9710--C

THAT ARE REQUIRED TO BE PAID PRIOR TO THE  ENACTMENT  OF  THIS  SECTION,
PROVIDED  THAT  THE  TAXPAYER  TIMELY  MADE  THOSE PAYMENTS; AND (B) THE
REQUIRED INSTALLMENT OF  ESTIMATED  TAX  DESCRIBED  IN  CLAUSE  (II)  OF
SUBPARAGRAPH  (B)  OF  PARAGRAPH  THREE OF SUBSECTION (C) OF SECTION SIX
HUNDRED EIGHTY-FIVE OF THIS CHAPTER, AND THE EXCEPTION TO  ADDITION  FOR
UNDERPAYMENT  OF  ESTIMATED  TAX  DESCRIBED  IN  PARAGRAPH ONE OR TWO OF
SUBSECTION (D) OF SECTION ONE THOUSAND EIGHTY-FIVE OF THIS  CHAPTER,  IN
RELATION  TO  THE PRECEDING YEAR'S RETURN, SHALL BE CALCULATED AS IF THE
DEFERRAL REQUIRED BY THIS SECTION HAD BEEN IN  EFFECT  FOR  THAT  ENTIRE
PRECEDING YEAR.
  3.  (A)  THIS  SECTION  SHALL  APPLY  TO THE CREDITS ALLOWED UNDER THE
FOLLOWING PROVISIONS IN ARTICLE NINE-A OF THIS CHAPTER AND ANY  APPLICA-
BLE  COUNTERPART PROVISIONS IN ARTICLES NINE, TWENTY-TWO, THIRTY-TWO AND
THIRTY-THREE OF THIS CHAPTER:
  SECTION 210(12) INVESTMENT TAX CREDIT
  SECTION 210(12-B) EMPIRE ZONE INVESTMENT TAX CREDIT
  SECTION 210(12-C) EMPIRE ZONE EMPLOYMENT INCENTIVE CREDIT
  SECTION 210(12-D) EMPLOYMENT INCENTIVE CREDIT
  SECTION 210(12-E) QETC EMPLOYMENT CREDIT
  SECTION 210(12-F) QETC CAPITAL TAX CREDIT
  SECTION 210(12-G) QETC FACILITIES, OPERATIONS, AND TRAINING CREDIT
  SECTION 210(17) SPECIAL ADDITIONAL MORTGAGE RECORDING TAX CREDIT
  SECTION 210(19) EMPIRE ZONE WAGE TAX CREDIT
  SECTION 210(20) EMPIRE ZONE CAPITAL TAX CREDIT
  SECTION 210(21-A) CREDIT FOR SERVICING CERTAIN MORTGAGES
  SECTION 210(23) CREDIT FOR EMPLOYMENT OF PERSONS WITH DISABILITIES
  SECTION 210(24) ALTERNATIVE FUELS CREDIT
  SECTION 210(25) CREDIT FOR PURCHASE OF AN AUTOMATED EXTERNAL DEFIBRIL-
LATOR
  SECTION 210(27) QEZE CREDIT FOR REAL PROPERTY TAXES
  SECTION 210(28) QEZE TAX REDUCTION CREDIT
  SECTION 210(30) LOW INCOME HOUSING CREDIT
  SECTION 210(31) GREEN BUILDING CREDIT
  SECTION 210(33) BROWNFIELD REDEVELOPMENT TAX CREDIT
  SECTION 210(34) REMEDIATED BROWNFIELD CREDIT FOR REAL  PROPERTY  TAXES
FOR QUALIFIED SITES
  SECTION 210(35) ENVIRONMENTAL REMEDIATION INSURANCE CREDIT
  SECTION 210(37) SECURITY TRAINING TAX CREDIT
  SECTION  210(37)  CREDIT  FOR  FUEL CELL ELECTRIC GENERATING EQUIPMENT
EXPENDITURES
  SECTION 210(38) CONSERVATION EASEMENT TAX CREDIT
  SECTION 210(38) EMPIRE STATE COMMERCIAL PRODUCTION CREDIT
  SECTION 210(38) BIOFUEL PRODUCTION CREDIT
  SECTION 210(39) CLEAN HEATING FUEL CREDIT
  SECTION 210(40) CREDIT FOR REHABILITATION OF HISTORIC PROPERTIES
  SECTION 210(40) CREDIT FOR COMPANIES  WHO  PROVIDE  TRANSPORTATION  TO
INDIVIDUALS WITH DISABILITIES
  (B)  THIS  SECTION  SHALL  ALSO  APPLY  TO  THE CREDITS ALLOWED BY THE
FOLLOWING SECTIONS:
  SECTION 186-A(9) POWER FOR JOBS CREDIT
  SECTION 606(G-1) SOLAR ENERGY SYSTEM EQUIPMENT CREDIT
  SECTION 606(PP) HISTORIC HOMEOWNERSHIP REHABILITATION CREDIT
  SECTION 1511(K) CREDIT FOR CERTAIN INVESTMENTS  IN  CERTIFIED  CAPITAL
COMPANIES
  S  2.  The  tax  law  is amended by adding a new section 34 to read as
follows:

S. 6610--B                         47                         A. 9710--C

  S 34. TEMPORARY DEFERRAL PAYOUT CREDITS.  1. THE AMOUNTS OF NONREFUND-
ABLE CREDITS THAT ARE DEFERRED PURSUANT TO SECTION THIRTY-THREE OF  THIS
ARTICLE IN  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TEN AND BEFORE  JANUARY FIRST, TWO THOUSAND THIRTEEN SHALL BE ACCU-
MULATED  AND CONSTITUTE THE  TAXPAYER'S TEMPORARY DEFERRAL NONREFUNDABLE
PAYOUT CREDIT. THE TAXPAYER MAY FIRST CLAIM THIS CREDIT IN  THE  TAXABLE
YEAR  BEGINNING  ON  OR AFTER JANUARY FIRST,   TWO THOUSAND THIRTEEN AND
BEFORE JANUARY FIRST, TWO THOUSAND FOURTEEN.  THE    TAXPAYER  SHALL  BE
ALLOWED   TO  CLAIM  THIS  CREDIT  UNTIL  THE  ACCUMULATED  AMOUNTS  ARE
EXHAUSTED. THE CREDIT SHALL BE ALLOWED AGAINST  THE  TAXPAYER'S  TAX  AS
PROVIDED  IN  THE  PROVISIONS REFERENCED IN PARAGRAPH (A) OF SUBDIVISION
THREE OF THIS SECTION.
  2. THE AMOUNTS OF REFUNDABLE CREDITS THAT  ARE  DEFERRED  PURSUANT  TO
SECTION  THIRTY-THREE  OF  THIS ARTICLE IN TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND TEN  AND  BEFORE  JANUARY  FIRST,  TWO
THOUSAND  THIRTEEN  SHALL  BE  ACCUMULATED AND CONSTITUTE THE TAXPAYER'S
TEMPORARY DEFERRAL REFUNDABLE PAYOUT  CREDIT. IN THE TAXABLE YEAR BEGIN-
NING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN AND BEFORE JANUARY
FIRST, TWO THOUSAND FOURTEEN, THE TAXPAYER SHALL BE ALLOWED TO  CLAIM  A
CREDIT  EQUAL TO FIFTY PERCENT OF THE AMOUNT ACCUMULATED. IN THE TAXABLE
YEAR BEGINNING ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND  FOURTEEN  AND
BEFORE  JANUARY  FIRST,  TWO  THOUSAND  FIFTEEN,  THE  TAXPAYER SHALL BE
ALLOWED TO CLAIM A CREDIT EQUAL TO SEVENTY-FIVE PERCENT OF  THE  BALANCE
OF  THE  AMOUNT  ACCUMULATED.  IN THE TAXABLE YEAR BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND FIFTEEN AND BEFORE JANUARY FIRST, TWO  THOU-
SAND  SIXTEEN,  THE TAXPAYER SHALL BE ALLOWED TO CLAIM A CREDIT EQUAL TO
THE REMAINING BALANCE OF THE AMOUNT ACCUMULATED.  THE  CREDIT  SHALL  BE
ALLOWED  AGAINST THE TAXPAYER'S TAX AS PROVIDED IN THE PROVISIONS REFER-
ENCED IN PARAGRAPH (B) OF SUBDIVISION THREE OF THIS SECTION.
  3. (A) FOR APPLICATION OF THE TEMPORARY DEFERRAL NONREFUNDABLE  PAYOUT
CREDIT, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9: SECTION 187-0
  (2) ARTICLE 9-A: SECTION 210(41)
  (3) ARTICLE 22: SECTION 606(QQ)
  (4) ARTICLE 32: SECTION 1456(V)
  (5) ARTICLE 33: SECTION 1511(Y)
  (B)  FOR APPLICATION OF THE TEMPORARY DEFERRAL REFUNDABLE PAYOUT CRED-
IT, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9: SECTION 187-P
  (2) ARTICLE 9-A: SECTION 210(42)
  (3) ARTICLE 22: SECTION 606(RR)
  (4) ARTICLE 32: SECTION 1456(W)
  (5) ARTICLE 33: SECTION 1511(Z)
  S 3. The tax law is amended by adding two new sections 187-o and 187-p
to read as follows:
  S 187-O. TEMPORARY DEFERRAL NONREFUNDABLE PAYOUT CREDIT. 1.  ALLOWANCE
OF  CREDIT.  A  TAXPAYER  SHALL  BE  ALLOWED A CREDIT, TO BE COMPUTED AS
PROVIDED IN SUBDIVISION ONE OF  SECTION  THIRTY-FOUR  OF  THIS  CHAPTER,
AGAINST  EITHER  THE TAXES IMPOSED BY SECTIONS ONE HUNDRED EIGHTY-THREE,
ONE HUNDRED EIGHTY-FOUR, AND ONE HUNDRED EIGHTY-FIVE, OR THE TAX IMPOSED
BY SECTION ONE HUNDRED EIGHTY-SIX-A OF THIS ARTICLE. HOWEVER, THE AMOUNT
OF  SUCH  CREDIT  AGAINST  THE  TAX  IMPOSED  BY  SECTION  ONE   HUNDRED
EIGHTY-FOUR  OF  THIS  ARTICLE SHALL BE THE EXCESS OF THE AMOUNT OF THAT
CREDIT OVER THE AMOUNT OF ANY CREDIT ALLOWED BY THIS SECTION AGAINST THE
TAX IMPOSED BY SECTION ONE HUNDRED EIGHTY-THREE OF THIS ARTICLE.

S. 6610--B                         48                         A. 9710--C

  2. APPLICATION OF CREDIT. IN NO EVENT  SHALL  THE  CREDIT  UNDER  THIS
SECTION  BE  ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX TO LESS THAN
THE APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHTY-THREE  OR
ONE  HUNDRED  EIGHTY-FIVE  OF  THIS  ARTICLE. IF, HOWEVER, THE AMOUNT OF
CREDIT  ALLOWED  UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES THE TAX
TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY  BE  DEDUCTED
FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S 187-P. TEMPORARY DEFERRAL REFUNDABLE PAYOUT CREDIT. 1.  ALLOWANCE OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN  SUBDIVISION  TWO OF SECTION THIRTY-FOUR OF THIS CHAPTER, AGAINST THE
TAXES IMPOSED BY SECTIONS ONE HUNDRED EIGHTY-THREE, ONE HUNDRED  EIGHTY-
FOUR  AND ONE HUNDRED EIGHTY-FIVE OF THIS ARTICLE, OR THE TAX IMPOSED BY
SECTION ONE HUNDRED EIGHTY-SIX-A OF THIS ARTICLE. HOWEVER, THE AMOUNT OF
SUCH CREDIT AGAINST THE TAX IMPOSED BY SECTION ONE  HUNDRED  EIGHTY-FOUR
OF  THIS  ARTICLE  SHALL BE THE EXCESS OF THE AMOUNT OF THAT CREDIT OVER
THE AMOUNT OF ANY CREDIT ALLOWED BY THIS SECTION AGAINST THE TAX IMPOSED
BY SECTION ONE HUNDRED EIGHTY-THREE OF THIS ARTICLE.
  2. APPLICATION OF CREDIT. IN NO EVENT  SHALL  THE  CREDIT  UNDER  THIS
SECTION  BE  ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX TO LESS THAN
THE APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHTY-THREE  OR
ONE  HUNDRED  EIGHTY-FIVE  OF  THIS  ARTICLE. IF, HOWEVER, THE AMOUNT OF
CREDIT ALLOWED UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES  THE  TAX
TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
SHALL  BE  TREATED AS AN OVERPAYMENT OF TAX TO BE REFUNDED IN ACCORDANCE
WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS  CHAPTER,
PROVIDED HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S  4. Section 210 of the tax law is amended by adding two new subdivi-
sions 41 and 42 to read as follows:
  41. TEMPORARY DEFERRAL NONREFUNDABLE PAYOUT CREDIT. (A)  ALLOWANCE  OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN  SUBDIVISION  ONE OF SECTION THIRTY-FOUR OF THIS CHAPTER, AGAINST THE
TAX IMPOSED BY THIS ARTICLE.
  (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS
THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE  OF  THIS
SECTION.    HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVI-
SION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT  OF
CREDIT  THUS  NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO
THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S  TAX
FOR SUCH YEAR OR YEARS.
  42.  TEMPORARY  DEFERRAL  REFUNDABLE  PAYOUT  CREDIT. (A) ALLOWANCE OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN SUBDIVISION TWO OF SECTION THIRTY-FOUR OF THIS CHAPTER,  AGAINST  THE
TAX IMPOSED BY THIS ARTICLE.
  (B)  APPLICATION  OF  CREDIT.  IN NO EVENT SHALL THE CREDIT UNDER THIS
SECTION BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX TO  LESS  THAN
THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF  SUBDIVISION ONE OF THIS
SECTION. IF, HOWEVER, THE AMOUNT OF CREDIT ALLOWED  UNDER  THIS  SECTION
FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CRED-
IT  NOT  DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAY-
MENT OF TAX TO BE REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF  SECTION
ONE  THOUSAND  EIGHTY-SIX  OF  THIS  CHAPTER,  PROVIDED HOWEVER, THAT NO
INTEREST SHALL BE PAID THEREON.
  S 5. Section 606  of  the  tax  law  is  amended  by  adding  two  new
subsections (qq) and (rr) to read as follows:

S. 6610--B                         49                         A. 9710--C

  (QQ)  TEMPORARY DEFERRAL NONREFUNDABLE PAYOUT CREDIT. (1) ALLOWANCE OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN SUBDIVISION ONE OF SECTION THIRTY-FOUR OF THIS CHAPTER,  AGAINST  THE
TAX IMPOSED BY THIS ARTICLE.
  (2)  IF  THE  AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
MAY  BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE DEDUCTED
FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  (RR) TEMPORARY DEFERRAL REFUNDABLE PAYOUT  CREDIT.  (1)  ALLOWANCE  OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN  SUBDIVISION  TWO OF SECTION THIRTY-FOUR OF THIS CHAPTER, AGAINST THE
TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH  YEAR,  THE  EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX
HUNDRED  EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON.
  S 6. Section 1456 of  the  tax  law  is  amended  by  adding  two  new
subsections (v) and (w) to read as follows:
  (V)  TEMPORARY  DEFERRAL NONREFUNDABLE PAYOUT CREDIT. (1) ALLOWANCE OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN SUBDIVISION ONE OF SECTION THIRTY-FOUR OF THIS CHAPTER,  AGAINST  THE
TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR THAT YEAR TO  LESS
THAN THE MINIMUM TAX FIXED BY SUBSECTION (B) OF SECTION FOURTEEN HUNDRED
FIFTY-FIVE  OF  THIS  ARTICLE.  HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED
UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE  TAX  TO  SUCH
AMOUNT,  ANY  AMOUNT  OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY  BE  DEDUCTED
FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  (W)  TEMPORARY  DEFERRAL  REFUNDABLE  PAYOUT  CREDIT. (1) ALLOWANCE OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN SUBDIVISION TWO OF SECTION THIRTY-FOUR OF THIS CHAPTER,  AGAINST  THE
TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF  CREDIT.  IN NO EVENT SHALL THE CREDIT UNDER THIS
SECTION BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX TO  LESS  THAN
THE  MINIMUM  TAX  FIXED  BY  SUBSECTION (B) OF SECTION FOURTEEN HUNDRED
FIFTY-FIVE OF THIS ARTICLE. IF, HOWEVER, THE AMOUNT  OF  CREDIT  ALLOWED
UNDER  THIS SECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT,
ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREAT-
ED AS AN OVERPAYMENT OF TAX  TO  BE  REFUNDED  IN  ACCORDANCE  WITH  THE
PROVISIONS  OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER, PROVIDED
HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S 7. Section 1511 of the tax law is amended by adding two new subdivi-
sions (y) and (z) to read as follows:
  (Y) TEMPORARY DEFERRAL NONREFUNDABLE PAYOUT CREDIT. (1)  ALLOWANCE  OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN  SUBDIVISION  ONE OF SECTION THIRTY-FOUR OF THIS CHAPTER, AGAINST THE
TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS
THAN THE MINIMUM TAX FIXED BY  PARAGRAPH  FOUR  OF  SUBDIVISION  (A)  OF
SECTION  FIFTEEN  HUNDRED  TWO  OF  THIS  ARTICLE  OR BY SECTION FIFTEEN
HUNDRED TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF  THE

S. 6610--B                         50                         A. 9710--C

AMOUNT  OF  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE
IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR  YEARS
AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  (Z)  TEMPORARY  DEFERRAL  REFUNDABLE  PAYOUT  CREDIT. (1) ALLOWANCE OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN SUBDIVISION TWO OF SECTION THIRTY-FOUR OF THIS CHAPTER,  AGAINST  THE
TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF  CREDIT.  IN NO EVENT SHALL THE CREDIT UNDER THIS
SECTION BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX TO  LESS  THAN
THE  MINIMUM  TAX  FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION
FIFTEEN HUNDRED TWO OF THIS ARTICLE OR BY SECTION FIFTEEN HUNDRED  TWO-A
OF  THIS  ARTICLE,  WHICHEVER  IS APPLICABLE. IF, HOWEVER, THE AMOUNT OF
CREDIT ALLOWED UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES  THE  TAX
TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
SHALL  BE  TREATED AS AN OVERPAYMENT OF TAX TO BE REFUNDED IN ACCORDANCE
WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS  CHAPTER,
PROVIDED HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S 8. This act shall take effect immediately.

                                 PART Z

  Section  1.  Paragraph 11 of subsection (b) of section 1453 of the tax
law, as added by chapter 817 of the laws of 1987, is amended to read  as
follows:
  (11)  FOR  TAXABLE  YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TEN, in the case of a taxpayer subject  to  the  provisions  of  section
585(c)  of  the internal revenue code, the amount allowed as a deduction
pursuant to section 166 of such code, and
  S 2. Paragraph 12 of subsection (b) of section 1453 of the tax law, as
added by chapter 817 of the laws of 1987, is amended to read as follows:
  (12) FOR TAXABLE YEARS BEGINNING BEFORE JANUARY  FIRST,  TWO  THOUSAND
TEN,  for  taxpayers subject to the provisions of subsection (i) of this
section, twenty percent of the  excess  of  (A)  the  amount  determined
pursuant  to  such  subsection  (i) over (B) the amount which would have
been allowable had such institution maintained its bad debt reserve  for
all taxable years on the basis of actual experience.
  S 3. Paragraph 13 of subsection (e) of section 1453 of the tax law, as
added by chapter 817 of the laws of 1987, is amended to read as follows:
  (13)  FOR  TAXABLE  YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TEN, in the case of a taxpayer  which  recaptures  its  balance  of  the
reserve  for losses on loans for federal income tax purposes pursuant to
section 585(c) of  the  internal  revenue  code,  any  amount  which  is
included  in  federal  taxable income pursuant to section 585(c) of such
code,
  S 4. Paragraph 14 of subsection (e) of section 1453 of the tax law, as
added by chapter 817 of the laws of 1987, is amended to read as follows:
  (14) FOR TAXABLE YEARS BEGINNING BEFORE JANUARY  FIRST,  TWO  THOUSAND
TEN,  in  the  case  of  a taxpayer subject to the provisions of section
585(c) of the internal revenue code, any amount  which  is  included  in
federal taxable income as a result of a recovery of a loan.
  S 5. Paragraph 15 of subsection (e) of section 1453 of the tax law, as
added by chapter 411 of the laws of 1996, is amended to read as follows:
  (15)  FOR  TAXABLE  YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TEN, in the case of a taxpayer which is currently or has previously been
subject to subsection (h) of this section, any amount which is  included

S. 6610--B                         51                         A. 9710--C

in  federal taxable income pursuant to section 593(e)(2) of the internal
revenue code, and any other amount so included as a result of a recovery
of or termination from the use of a  bad  debt  reserve  as  defined  in
section 593 of such code as in existence on December thirty-first, nine-
teen  hundred  ninety-five  as  a  result of federal legislation enacted
after December thirty-first, nineteen hundred ninety-five.
  S 6. Paragraph 2 of subsection (h) of section 1453 of the tax law,  as
amended  by  chapter  411  of  the  laws  of 1996, is amended to read as
follows:
  (2) [A] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TEN, A thrift institution must  exclude  from  the  computation  of  its
entire  net  income any amount allowed as a deduction for federal income
tax purposes pursuant to sections 166, 585 or 593 of the internal reven-
ue code.
  S 7. Paragraph 3 of subsection (h) of section 1453 of the tax law,  as
amended  by  chapter  411  of  the  laws  of 1996, is amended to read as
follows:
  (3) [A] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TEN, A thrift institution shall be allowed as a deduction  in  computing
entire net income the amount of a reasonable addition to its reserve for
bad debts. This amount shall be equal to the sum of
  (A)  the  amount determined to be a reasonable addition to the reserve
for losses on nonqualifying loans, computed in the  same  manner  as  is
provided  with  respect to additions to the reserves for losses on loans
of banks under paragraph one of subsection (i) of this section, plus
  (B) the amount determined by the taxpayer to be a reasonable  addition
to  the  reserve  for losses on qualifying real property loans, but such
amount shall not exceed the amount determined under  paragraph  four  or
five  of this subsection, whichever is the larger, but the amount deter-
mined under this subparagraph shall in no case be greater than the larg-
er of
  (i) the amount determined under such paragraph five, or
  (ii) the amount which, when  added  to  the  amount  determined  under
subparagraph  (A)  of  this paragraph, equals the amount by which twelve
percent of the total deposits or withdrawable accounts of depositors  of
the  taxpayer  at the close of such year exceeds the sum of its surplus,
undivided profits and reserves at the beginning  of  such  year  (taking
into  account  any portion thereof attributable to the period before the
first taxable  year  beginning  after  December  thirty-first,  nineteen
hundred fifty-one).
  The  taxpayer  must include in its tax return for each year a computa-
tion of the amount of the addition to the bad  debt  reserve  determined
under  this subsection. The use of a particular method in the return for
a taxable year is not a binding election by the taxpayer.
  S 8. Paragraph 1 of subsection (i) of section 1453 of the tax law,  as
amended  by  chapter  411  of  the  laws  of 1996, is amended to read as
follows:
  (1) [A] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TEN, A taxpayer subject to the  provisions  of  section  585(c)  of  the
internal  revenue code and not subject to subsection (h) of this section
may, in computing entire net income, deduct an amount equal to  or  less
than  the  amount  determined pursuant to subparagraph (A) of this para-
graph or subparagraph (B)  of  this  paragraph,  whichever  is  greater.
Provided,  however,  in  no  event  shall the deduction be less than the
amount determined pursuant to such subparagraph (A).

S. 6610--B                         52                         A. 9710--C

  (A) The amount determined pursuant to this subparagraph shall  be  the
amount  necessary  to  increase  the balance of its New York reserve for
losses on loans (at the close of the taxable year) to the  amount  which
bears  the  same  ratio to loans outstanding at the close of the taxable
year  as  (i)  the total bad debts sustained during the taxable year and
the five preceding taxable years (or, with the approval of  the  commis-
sioner  of  taxation and finance, a shorter period), adjusted for recov-
eries of bad debts during such period, bears to  (ii)  the  sum  of  the
loans outstanding at the close of such six or fewer taxable years.
  (B)  (i)  The amount determined pursuant to this subparagraph shall be
the amount necessary to increase the balance of its New York reserve for
losses on loans (at the close of the taxable year) to the lower of --
  (I) the balance of the reserve at the close of the base year, or
  (II) if the amount of loans outstanding at the close  of  the  taxable
year  is  less  than the amount of loans outstanding at the close of the
base year, the amount which bears the same ratio to loans outstanding at
the close of the taxable year as the balance of the reserve at the close
of the base year bears to the amount of loans outstanding at  the  close
of the base year.
  (ii)  For  purposes  of this paragraph, the base year shall be (I) for
taxable years beginning in nineteen hundred eighty-seven, the last taxa-
ble year before the most recent adoption of the  experience  method  for
federal  income  tax purposes or for purposes of this article, whichever
is earlier, and (II) for taxable years beginning after nineteen  hundred
eighty-seven,  the  last  taxable year beginning before nineteen hundred
eighty-eight.
  S 9. Paragraph 2 of subsection (i) of section 1453 of the tax law,  as
amended  by  chapter  411  of  the  laws  of 1996, is amended to read as
follows:
  (2) (A) [Each] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY  FIRST,  TWO
THOUSAND   TEN,  EACH  taxpayer  described  in  paragraph  one  of  this
subsection shall establish and maintain a New York reserve for losses on
loans.   Such reserve shall be maintained  for  all  subsequent  taxable
years.  The  balance  of the New York reserve for losses on loans at the
beginning of the first day  of  the  first  taxable  year  the  taxpayer
becomes  subject  to this subsection shall be the same as the balance at
the beginning of such day of the reserve for losses on loans  maintained
for  federal  income  tax  purposes.  The New York reserve for losses on
loans shall be reduced by an amount equal to the deduction allowed,  but
not  more  than  the  amount  allowable, for worthless debts for federal
income tax purposes pursuant to section 166 of the internal revenue code
plus the amount, if any, charged against its reserve for losses on loans
pursuant to section 585(c)(4) of such code.
  (B) For purposes of subparagraph (A) of  this  paragraph,  a  taxpayer
which had previously been subject to the provisions of subsection (h) of
this  section  shall  establish  a  New York reserve for losses on loans
equal to the sum of (i) the greater of (I) the balance  of  its  federal
reserve for losses on qualifying real property loans as of the first day
of the first taxable year the taxpayer becomes subject to the provisions
of  this  subsection or (II) the greater of the amounts determined under
subparagraphs (A) and (B) of paragraph nine of subsection  (h)  of  this
section  in  the  year  such paragraph applied to the taxpayer, (ii) the
greater of (I) the balance in its federal reserve for losses on nonqual-
ifying loans as of the first day of the first taxable year the  taxpayer
becomes  subject  to this subsection or (II) the balance in its New York
reserve for losses on nonqualifying  loans  as  of  the  last  date  the

S. 6610--B                         53                         A. 9710--C

taxpayer was subject to the provisions of subsection (h) of this section
and (iii) the balance in its supplemental reserve for losses on loans as
of  the  last  date  the  taxpayer  was  subject  to  the  provisions of
subsection (h) of this section.
  S  10. Paragraph 11 of subdivision (b) of section 11-641 of the admin-
istrative code of the city of New York, as added by chapter 525  of  the
laws of 1988, is amended to read as follows:
  (11)  FOR  TAXABLE  YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TEN, in the case of a taxpayer subject  to  the  provisions  of  section
585(c)  of  the internal revenue code, the amount allowed as a deduction
pursuant to section 166 of such code; and
  S 11. Paragraph 12 of subdivision (b) of section 11-641 of the  admin-
istrative  code  of the city of New York, as added by chapter 525 of the
laws of 1988, is amended to read as follows:
  (12) FOR TAXABLE YEARS BEGINNING BEFORE JANUARY  FIRST,  TWO  THOUSAND
TEN,  for taxpayers subject to the provisions of subdivision (i) of this
section, twenty percent of the  excess  of  (A)  the  amount  determined
pursuant  to  such  subdivision (i) over (B) the amount which would have
been allowable had such institution maintained its bad debt reserve  for
all taxable years on the basis of actual experience.
  S  12. Paragraph 13 of subdivision (e) of section 11-641 of the admin-
istrative code of the city of New York, as added by chapter 525  of  the
laws of 1988, is amended to read as follows:
  (13)  FOR  TAXABLE  YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TEN, in the case of a taxpayer  which  recaptures  its  balance  of  the
reserve  for losses on loans for federal income tax purposes pursuant to
section 585(c) of  the  internal  revenue  code,  any  amount  which  is
included  in  federal  taxable income pursuant to section 585(c) of such
code,
  S 13. Paragraph 14 of subdivision (e) of section 11-641 of the  admin-
istrative  code  of the city of New York, as added by chapter 525 of the
laws of 1988, is amended to read as follows:
  (14) FOR TAXABLE YEARS BEGINNING BEFORE JANUARY  FIRST,  TWO  THOUSAND
TEN,  in  the  case  of  a taxpayer subject to the provisions of section
585(c) of the internal revenue code, any amount  which  is  included  in
federal taxable income as a result of a recovery of a loan.
  S  14. Paragraph 15 of subdivision (e) of section 11-641 of the admin-
istrative code of the city of New York, as added by chapter  18  of  the
laws of 1997, is amended to read as follows:
  (15)  FOR  TAXABLE  YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TEN, in the case of a taxpayer which is currently or has previously been
subject to subdivision (h) of this section, any amount which is included
in federal taxable income pursuant to section 593(e)(2) of the  internal
revenue code, and any other amount so included as a result of a recovery
of  or  termination  from  the  use  of a bad debt reserve as defined in
section 593 of such code as in existence on December thirty-first, nine-
teen hundred ninety-five as a  result  of  federal  legislation  enacted
after December thirty-first, nineteen hundred ninety-five.
  S 15. Paragraph 2 of subdivision (h) of section 11-641 of the adminis-
trative  code  of  the city of New York, as amended by chapter 18 of the
laws of 1997, is amended to read as follows:
  (2) [A] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TEN, A thrift institution must  exclude  from  the  computation  of  its
entire  net  income any amount allowed as a deduction for federal income
tax purposes pursuant to section 166, 585 or 593 of the internal revenue
code.

S. 6610--B                         54                         A. 9710--C

  S 16. Paragraph 3 of subdivision (h) of section 11-641 of the adminis-
trative code of the city of New York, as amended by chapter  18  of  the
laws of 1997, is amended to read as follows:
  (3) [A] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TEN,  A  thrift institution shall be allowed as a deduction in computing
entire net income the amount of a reasonable addition to its reserve for
bad debts. This amount shall be equal to the sum of
  (A) the amount determined to be a reasonable addition to  the  reserve
for  losses  on  nonqualifying  loans, computed in the same manner as is
provided with respect to additions to the reserves for losses  on  loans
of banks under paragraph one of subdivision (i) of this section, plus
  (B)  the amount determined by the taxpayer to be a reasonable addition
to the reserve for losses on qualifying real property  loans,  but  such
amount  shall  not  exceed the amount determined under paragraph four or
five of this subdivision, whichever is the larger, but the amount deter-
mined under this subparagraph shall in no case be greater than the larg-
er of
  (i) the amount determined under paragraph five of this subdivision, or
  (ii) the amount which, when  added  to  the  amount  determined  under
subparagraph  (A)  of  this paragraph, equals the amount by which twelve
percent of the total deposits or withdrawable accounts of depositors  of
the  taxpayer  at the close of such year exceeds the sum of its surplus,
undivided profits and reserves at the beginning  of  such  year  (taking
into  account  any portion thereof attributable to the period before the
first taxable  year  beginning  after  December  thirty-first,  nineteen
hundred fifty-one).
  The  taxpayer  must include in its tax return for each year a computa-
tion of the amount of the addition to the bad  debt  reserve  determined
under this subdivision. The use of a particular method in the return for
a taxable year is not a binding election by the taxpayer.
  S 17. Paragraph 1 of subdivision (i) of section 11-641 of the adminis-
trative  code  of  the city of New York, as amended by chapter 18 of the
laws of 1997, is amended to read as follows:
  (1) [A] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TEN, A taxpayer subject to the  provisions  of  section  585(c)  of  the
internal revenue code and not subject to subdivision (h) of this section
may,  in  computing entire net income, deduct an amount equal to or less
than the amount determined pursuant to subparagraph (A)  of  this  para-
graph  or  subparagraph  (B)  of  this  paragraph, whichever is greater.
Provided, however, in no event shall the  deduction  be  less  than  the
amount determined pursuant to such subparagraph (A).
  (A)  The  amount determined pursuant to this subparagraph shall be the
amount necessary to increase the balance of its  New  York  reserve  for
losses  on  loans (at the close of the taxable year) to the amount which
bears the same ratio to loans outstanding at the close  of  the  taxable
year  as  (i)  the total bad debts sustained during the taxable year and
the five preceding taxable years (or, with the approval of  the  commis-
sioner  of  finance,  a  shorter period), adjusted for recoveries of bad
debts during such period, bears to (ii) the sum of the loans outstanding
at the close of such six or fewer taxable years.
  (B)(i) The amount determined pursuant to this  subparagraph  shall  be
the amount necessary to increase the balance of its New York reserve for
losses on loans (at the close of the taxable year) to the lower of --
  (I) the balance of the reserve at the close of the base year, or
  (II)  if  the  amount of loans outstanding at the close of the taxable
year is less than the amount of loans outstanding at the  close  of  the

S. 6610--B                         55                         A. 9710--C

base year, the amount which bears the same ratio to loans outstanding at
the close of the taxable year as the balance of the reserve at the close
of  the  base year bears to the amount of loans outstanding at the close
of the base year.
  (ii)  For  purposes  of this paragraph, the base year shall be (I) for
taxable years beginning in nineteen hundred eighty-seven, the last taxa-
ble year before the most recent adoption of the  experience  method  for
federal  income  tax purposes or for purposes of this part, whichever is
earlier, and (II) for taxable years  beginning  after  nineteen  hundred
eighty-seven,  the  last  taxable year beginning before nineteen hundred
eighty-eight.
  S 18. Paragraph 2 of subdivision (i) of section 11-641 of the adminis-
trative code of the city of New York, as amended by chapter  18  of  the
laws of 1997, is amended to read as follows:
  (2)  (A)  [Each] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND TEN, EACH taxpayer described in paragraph one of this  subdivi-
sion  shall  establish  and  maintain  a  New York reserve for losses on
loans.   Such reserve shall be maintained  for  all  subsequent  taxable
years.  The  balance  of the New York reserve for losses on loans at the
beginning of the first day  of  the  first  taxable  year  the  taxpayer
becomes  subject to this subdivision shall be the same as the balance at
the beginning of such day of the reserve for losses on loans  maintained
for  federal  income  tax  purposes.  The New York reserve for losses on
loans shall be reduced by an amount equal to the deduction allowed,  but
not  more  than  the  amount  allowable, for worthless debts for federal
income tax purposes pursuant to section 166 of the internal revenue code
plus the amount, if any, charged against its reserve for losses on loans
pursuant to section 585(c)(4) of such code.
  (B) For purposes of subparagraph (A) of  this  paragraph,  a  taxpayer
which  had  previously been subject to the provisions of subdivision (h)
of this section shall establish a New York reserve for losses  on  loans
equal  to  the  sum of (i) the greater of (I) the balance of its federal
reserve for losses on qualifying real property loans as of the first day
of the first taxable year the taxpayer becomes subject to the provisions
of this subdivision or (II) the greater of the amounts determined  under
subparagraphs  (A)  and (B) of paragraph nine of subdivision (h) of this
section in the year such paragraph applied to  the  taxpayer,  (ii)  the
greater of (I) the balance in its federal reserve for losses on nonqual-
ifying  loans as of the first day of the first taxable year the taxpayer
becomes subject to this subdivision or (II) the balance in its New  York
reserve  for  losses  on  nonqualifying  loans  as  of the last date the
taxpayer was subject to  the  provisions  of  subdivision  (h)  of  this
section, and (iii) the balance in its supplemental reserve for losses on
loans  as of the last date the taxpayer was subject to the provisions of
subdivision (h) of this section.
  S 19. This act shall take effect immediately.

                                 PART AA

  Section 1. Statement of legislative findings and purposes. (a)  It  is
hereby  found  and declared that New York's Tax Law should be updated to
put room remarketers on the same footing as hotel  operators  for  sales
tax purposes. In recent years, more and more consumers are booking their
hotel  rooms through room remarketers and paying them instead of obtain-
ing the hotel room directly from hotel operators. Room remarketers enter
into agreements with New York hotel operators to  resell  rooms  through

S. 6610--B                         56                         A. 9710--C

the  remarketers'  websites  and  toll-free numbers. The State currently
receives no tax on the remarketers' markup on the room, giving remarket-
ers a competitive advantage over hotels using  conventional  reservation
methods. This bill would make clear that the right to "resell" the occu-
pancy, as well as the physical occupancy of a hotel room, are both taxa-
ble,  thus  removing  the  tax advantage that room remarketers currently
have over hotel operators. The bill would also  amend  New  York  City's
locally-administered hotel room occupancy tax to conform it to the meth-
odology of the State tax in regard to room remarketers.
  (b)  It  is  further  found and declared that the Tax Appeals Tribunal
erred in its recent decision in the Marriott International, Inc.  matter
(DTA 821078, dated January 14, 2010)  when  it  held  that  the  rewards
program  payments  made  to  hotels  were not taxable as rent. This bill
remedies this interpretation  of  the  law  by  clarifying  that  reward
program  payments  are  taxable as rent for purposes of the sales tax on
hotel occupancies and as amusement charges for purposes of  the  tax  on
amusement  charges.  No change is necessary for purposes of the taxes on
the receipts from the sale of tangible  personal  property  or  services
because  the law is clear that such rewards program payments are part of
the receipts subject to tax.
  S 2. Paragraphs 2, 3, 4 and 6 of subdivision (c) of  section  1101  of
the  tax law, as added by chapter 93 of the laws of 1965, are amended to
read as follows:
  (2) Occupancy. The use or possession, or  the  right  to  the  use  or
possession,  of  any  room in a hotel.  "RIGHT TO THE USE OR POSSESSION"
INCLUDES THE RIGHTS OF A ROOM REMARKETER AS DESCRIBED IN PARAGRAPH EIGHT
OF THIS SUBDIVISION.
  (3) Occupant. A person who, for a consideration, uses,  possesses,  or
has  the  right  to use or possess, any room in a hotel under any lease,
concession, permit, right of access, license to use or other  agreement,
or  otherwise.   "RIGHT TO USE OR POSSESS" INCLUDES THE RIGHTS OF A ROOM
REMARKETER AS DESCRIBED IN PARAGRAPH EIGHT OF THIS SUBDIVISION.
  (4) Operator. Any person operating a hotel.  SUCH TERM SHALL INCLUDE A
ROOM REMARKETER AND SUCH ROOM REMARKETER SHALL BE DEEMED  TO  OPERATE  A
HOTEL,  OR  PORTION  THEREOF,  WITH RESPECT TO WHICH SUCH PERSON HAS THE
RIGHTS OF A ROOM REMARKETER.
  (6) Rent. The consideration  received  for  occupancy,  INCLUDING  ANY
SERVICE OR OTHER CHARGE OR AMOUNT REQUIRED TO BE PAID AS A CONDITION FOR
OCCUPANCY,  valued  in money, whether received in money or otherwise AND
WHETHER RECEIVED BY THE OPERATOR OR A ROOM REMARKETER OR ANOTHER  PERSON
ON BEHALF OF EITHER OF THEM.
  S  3.  Subdivision  (c)  of  section 1101 of the tax law is amended by
adding a new paragraph 8 to read as follows:
  (8) ROOM REMARKETER.  A PERSON WHO RESERVES, ARRANGES FOR, CONVEYS, OR
FURNISHES OCCUPANCY, WHETHER DIRECTLY OR INDIRECTLY, TO AN OCCUPANT  FOR
RENT  IN  AN AMOUNT DETERMINED BY THE ROOM REMARKETER, DIRECTLY OR INDI-
RECTLY, WHETHER PURSUANT TO A WRITTEN OR OTHER AGREEMENT. SUCH  PERSON'S
ABILITY  OR  AUTHORITY TO RESERVE, ARRANGE FOR, CONVEY, OR FURNISH OCCU-
PANCY, DIRECTLY OR INDIRECTLY, AND TO DETERMINE RENT THEREFOR, SHALL  BE
THE  "RIGHTS OF A ROOM REMARKETER". A ROOM REMARKETER IS NOT A PERMANENT
RESIDENT WITH RESPECT TO A ROOM FOR WHICH SUCH PERSON HAS THE RIGHTS  OF
A ROOM REMARKETER.
  S  4.  Subdivision  (e)  of section 1105 of the tax law, as amended by
chapter 72 of the laws of 1971, is amended to read as follows:
  (e) (1) The rent for every occupancy of a room or rooms in a hotel  in
this  state,  except  that the tax shall not be imposed upon [(1)] (I) a

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permanent resident, or [(2)] (II) where the rent is not more than at the
rate of two dollars per day.
  (2) WHEN OCCUPANCY IS PROVIDED, FOR A SINGLE CONSIDERATION, WITH PROP-
ERTY, SERVICES, AMUSEMENT CHARGES, OR ANY OTHER ITEMS, THE SEPARATE SALE
OF  WHICH IS NOT SUBJECT TO TAX UNDER THIS ARTICLE, THE ENTIRE CONSIDER-
ATION SHALL BE TREATED AS RENT SUBJECT TO TAX  UNDER  PARAGRAPH  ONE  OF
THIS  SUBDIVISION;  PROVIDED, HOWEVER, THAT WHERE THE AMOUNT OF THE RENT
FOR OCCUPANCY IS STATED SEPARATELY FROM  THE  PRICE  OF  SUCH  PROPERTY,
SERVICES, AMUSEMENT CHARGES, OR OTHER ITEMS, ON ANY SALES SLIP, INVOICE,
RECEIPT, OR OTHER STATEMENT GIVEN THE OCCUPANT, AND SUCH RENT IS REASON-
ABLE  IN  RELATION  TO  THE  VALUE OF SUCH PROPERTY, SERVICES, AMUSEMENT
CHARGES OR OTHER ITEMS, ONLY SUCH SEPARATELY STATED RENT WILL BE SUBJECT
TO TAX UNDER PARAGRAPH ONE OF THIS SUBDIVISION.
  S 5. Section 1119 of the tax law is amended by adding a  new  subdivi-
sion (e) to read as follows:
  (E)  SUBJECT  TO  CONDITIONS AND LIMITATIONS PROVIDED IN THIS SUBDIVI-
SION, A ROOM REMARKETER SHALL BE ALLOWED A REFUND OR CREDIT AGAINST  THE
AMOUNT OF TAX COLLECTED AND REQUIRED TO BE REMITTED UNDER SECTION ELEVEN
HUNDRED THIRTY-SEVEN OF THIS ARTICLE IN THE AMOUNT OF THE TAX IT PAID TO
AN  OPERATOR  OF A HOTEL UNDER SECTION ELEVEN HUNDRED FOUR OF THIS ARTI-
CLE, WHERE APPLICABLE, AND SUBDIVISION (E)  OF  SECTION  ELEVEN  HUNDRED
FIVE OF THIS ARTICLE. PROVIDED, HOWEVER, THAT, IN ORDER TO QUALIFY FOR A
REFUND  OR  CREDIT  UNDER  THIS  SUBDIVISION FOR ANY SALES TAX QUARTERLY
PERIOD, THE ROOM REMARKETER MUST, FOR THAT QUARTER,  (1)  BE  REGISTERED
FOR  SALES TAX PURPOSES UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS
ARTICLE; (2) COLLECT THE TAXES IMPOSED BY SECTION ELEVEN HUNDRED FOUR OF
THIS ARTICLE, WHERE APPLICABLE, AND SUBDIVISION (E)  OF  SECTION  ELEVEN
HUNDRED FIVE OF THIS ARTICLE; AND (3) FURNISH THE CERTIFICATE OF AUTHOR-
ITY  NUMBER  OF  THE  OPERATOR TO WHOM THE APPLICANT PAID THE TAX IN ITS
APPLICATION FOR REFUND OR CREDIT  IF  REQUIRED  ON  THAT  FORM  OR  UPON
REQUEST. AN APPLICATION FOR REFUND OR CREDIT UNDER THIS SUBDIVISION MUST
BE  FILED  WITH THE COMMISSIONER WITHIN THE TIME PROVIDED BY SUBDIVISION
(A) OF SECTION ELEVEN HUNDRED THIRTY-NINE OF THIS ARTICLE. THE  APPLICA-
TION MUST BE IN THE FORM PRESCRIBED BY THE COMMISSIONER. WHERE AN APPLI-
CATION FOR CREDIT HAS BEEN FILED, THE APPLICANT MAY IMMEDIATELY TAKE THE
CREDIT  ON  THE RETURN THAT IS DUE COINCIDENT WITH OR IMMEDIATELY SUBSE-
QUENT TO THE TIME THAT THE APPLICANT FILES THE APPLICATION  FOR  CREDIT.
HOWEVER,  THE TAKING OF THE CREDIT ON THE RETURN IS DEEMED TO BE PART OF
THE APPLICATION FOR CREDIT. THE PROCEDURE FOR GRANTING  OR  DENYING  THE
APPLICATIONS  FOR  REFUND  OR  CREDIT AND REVIEW OF THOSE DETERMINATIONS
SHALL BE AS PROVIDED IN SUBDIVISION (E) OF SECTION ELEVEN HUNDRED  THIR-
TY-NINE  OF  THIS ARTICLE. AN OPERATOR, INCLUDING A ROOM REMARKETER, WHO
IS PAID TAX BY A ROOM REMARKETER MUST UPON REQUEST PROVIDE THE REMARKET-
ER WITH ITS CERTIFICATE OF AUTHORITY NUMBER, PROVIDED  THAT  THE  OPERA-
TOR'S  FAILURE  TO  DO  SO  DOES NOT CHANGE THE REQUIREMENT SET FORTH IN
PARAGRAPH THREE OF THIS SUBDIVISION.
  S 6. Subdivisions 2, 3, 4, 7 and 12 of section 11-2501 of the adminis-
trative code of the city of New  York,  subdivision  7  as  amended  and
subdivision  12  as added by local law number 43 of the city of New York
for the year 2009, are amended to read as follows:
  2. "Operator." Any person operating a hotel in the city of  New  York,
including, but not limited to, the owner or proprietor of such premises,
lessee,  sublessee,  [mortgage] MORTGAGEE in possession, licensee or any
other person otherwise operating such hotel.
  3. "Occupant." A person who, for a consideration, uses, possesses,  or
has  the right to use or possess, any room or rooms in a hotel under any

S. 6610--B                         58                         A. 9710--C

lease, concession, permit, right of access,  license  to  use  or  other
agreement,  or otherwise.  "RIGHT TO USE OR POSSESS" INCLUDES THE RIGHTS
OF A ROOM REMARKETER AS DESCRIBED IN SUBDIVISION TWELVE OF THIS SECTION.
  4.  "Occupancy."  The  use  or  possession, or the right to the use or
possession of any room or rooms in a hotel, or the right to the  use  or
possession  of  the  furnishings  or  to the services and accommodations
accompanying the use and possession of the room or rooms.  "RIGHT TO THE
USE OR POSSESSION" INCLUDES THE RIGHTS OF A ROOM REMARKETER AS DESCRIBED
IN SUBDIVISION TWELVE OF THIS SECTION.
  7. "Rent." The consideration received for occupancy valued  in  money,
whether  received  in  money or otherwise, including all receipts, cash,
credits, and property or services of any kind or nature,  including  any
service  [and/or  booking  fees  that  are]  OR  OTHER  CHARGE OR AMOUNT
REQUIRED TO BE PAID AS a condition [of]  FOR  occupancy,  and  also  any
amount for which credit is allowed by the operator or room remarketer to
the  occupant,  without  any  deduction  therefrom  whatsoever,  WHETHER
RECEIVED BY THE OPERATOR OR A  ROOM  REMARKETER  OR  ANOTHER  PERSON  ON
BEHALF OF EITHER OF THEM.
  12. "Room remarketer." [Any person, excluding the operator, having any
right,  access, ability or authority, through an internet transaction or
any other means whatsoever, to offer, reserve, book, arrange for, remar-
ket, distribute, broker, resell, or facilitate the transfer of rooms the
occupancy of which is subject to tax under this chapter.] A  PERSON  WHO
RESERVES, ARRANGES FOR, CONVEYS, OR FURNISHES OCCUPANCY, WHETHER DIRECT-
LY  OR  INDIRECTLY,  TO  AN OCCUPANT FOR RENT IN AN AMOUNT DETERMINED BY
SUCH ROOM REMARKETER, DIRECTLY OR  INDIRECTLY,  WHETHER  PURSUANT  TO  A
WRITTEN  OR  OTHER  AGREEMENT.  SUCH  PERSON'S  ABILITY  OR AUTHORITY TO
RESERVE, ARRANGE FOR, CONVEY, OR FURNISH OCCUPANCY,  DIRECTLY  OR  INDI-
RECTLY,  AND  TO DETERMINE RENT THEREFOR, SHALL BE THE "RIGHTS OF A ROOM
REMARKETER". A ROOM REMARKETER IS NOT A PERMANENT RESIDENT WITH  RESPECT
TO A ROOM FOR WHICH SUCH PERSON HAS THE RIGHTS OF A ROOM REMARKETER.
  S  7.  Subdivisions 13 and 14 of section 11-2501 of the administrative
code of the city of New York are REPEALED.
  S 8. Paragraphs 4 and 5 of subdivision a of  section  11-2502  of  the
administrative  code  of  the  city of New York, as amended by local law
number 43 of the city of New York for the year 2009, are amended to read
as follows:
  (4) [Where the occupancy of a room is reserved,  booked  or  otherwise
arranged for by a room remarketer, the tax imposed by paragraph three of
this subdivision shall be determined based on the rent received from the
occupant by the room remarketer. In such a transaction, the room remark-
eter  shall  collect  from  the  occupant and remit to the operator that
portion of the tax that is determined based upon the net rent,  and  the
operator  shall  pay  such  portion  of  the  tax to the commissioner of
finance. The room remarketer shall collect from the occupant and pay  to
the  commissioner  of finance that portion of the tax that is determined
based upon the additional rent.]  WHEN  OCCUPANCY  IS  PROVIDED,  FOR  A
SINGLE CONSIDERATION, WITH PROPERTY, SERVICES, AMUSEMENT CHARGES, OR ANY
OTHER ITEMS, THE SEPARATE SALE OF WHICH IS NOT SUBJECT TO TAX UNDER THIS
CHAPTER,  THE  ENTIRE  CONSIDERATION SHALL BE TREATED AS RENT SUBJECT TO
TAX UNDER PARAGRAPH ONE OF THIS  SUBDIVISION;  PROVIDED,  HOWEVER,  THAT
WHERE THE AMOUNT OF THE RENT FOR OCCUPANCY IS STATED SEPARATELY FROM THE
PRICE  OF  SUCH  PROPERTY, SERVICES, AMUSEMENT CHARGES OR OTHER ITEMS ON
ANY SALES SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT GIVEN THE  OCCUPANT
AND  SUCH  RENT IS REASONABLE IN RELATION TO THE VALUE OF SUCH PROPERTY,

S. 6610--B                         59                         A. 9710--C

SERVICES, AMUSEMENT CHARGES, OR OTHER ITEMS, ONLY SUCH SEPARATELY STATED
RENT WILL BE SUBJECT TO TAX UNDER PARAGRAPH ONE OF THIS SUBDIVISION.
  (5)  A ROOM REMARKETER SHALL BE ALLOWED A REFUND OR CREDIT AGAINST THE
TAXES COLLECTED AND REQUIRED TO BE REMITTED PURSUANT TO SECTION  11-2505
OF  THIS CHAPTER IN THE AMOUNT OF THE TAX IT PAID TO THE OPERATOR OF THE
HOTEL OR ANOTHER ROOM REMARKETER UNDER PARAGRAPH THREE OF THIS  SUBDIVI-
SION. PROVIDED, HOWEVER, THAT IN ORDER TO QUALIFY FOR A REFUND OR CREDIT
UNDER  THIS PARAGRAPH WITH RESPECT TO ANY QUARTERLY PERIOD, AS DESCRIBED
IN SUBDIVISION A OF SECTION 11-2504 OF THIS CHAPTER, THE ROOM REMARKETER
MUST, WITH RESPECT TO SUCH QUARTER, (I) BE  REGISTERED  FOR  HOTEL  ROOM
OCCUPANCY  TAX  PURPOSES UNDER SECTION 11-2514 OF THIS CHAPTER, AND (II)
COLLECT THE TAXES IMPOSED BY PARAGRAPHS TWO AND THREE OF  THIS  SUBDIVI-
SION.  SUBJECT  TO THE CONDITIONS AND LIMITATIONS OF THIS PARAGRAPH, THE
PROVISIONS OF SECTION 11-2507 OF THIS CHAPTER SHALL APPLY TO REFUNDS  OR
CREDITS UNDER THIS PARAGRAPH.
  (6)  Where  the  rent  is  paid  or charged or billed, or falls due on
either a weekly, monthly or other term basis, the daily rent upon  which
the  tax is determined shall be the result obtained by dividing the rent
for such term by the number of days in such term. Where the rent is  for
more  than  one room, including but not limited to a suite of rooms, the
daily rent per room upon which tax is determined shall be calculated  by
multiplying  the  daily  rent  for the group of rooms by a fraction, the
numerator of which shall be the daily rent for the particular room, or a
similar room, when such room is rented alone with similar  bath  facili-
ties,  and the denominator of which shall be the total of the daily rent
for the individual rooms in the group of rooms, or similar  rooms,  when
such rooms are rented alone with similar bath facilities. In any case in
which  it  is  not  possible to determine the daily rent per room in the
foregoing manner, the commissioner of finance  shall  prescribe  methods
for making such determination.
  S  9.  Paragraph 2 of subdivision f of section 11-2502 of the adminis-
trative code of the city of New York is REPEALED and paragraph 3 of such
subdivision is renumbered paragraph 2.
  S 10. Subdivision a of section 11-2507 of the administrative  code  of
the  city  of New York, as amended by local law number 43 of the city of
New York for the year 2009, is amended to read as follows:
  a. In the manner provided in this section the commissioner of  finance
shall  refund  or credit, without interest, any tax, penalty or interest
erroneously, illegally or unconstitutionally collected or paid if  writ-
ten  application to the commissioner of finance for such refund shall be
made within one year from the payment thereof.   Whenever  a  refund  or
credit is made or denied by the commissioner of finance, he or she shall
state his or her reasons therefor and give notice thereof to the taxpay-
er  in  writing. Such application may be made by the occupant, operator,
room remarketer or other person  who  has  actually  paid  the  tax  [or
portion of the tax] to the commissioner of finance. Such application may
also  be  made  by  an operator or room remarketer who has collected and
paid over such tax [or portion of  such  tax]  to  the  commissioner  of
finance  provided  that  the  application is made within one year of the
payment by the occupant to the operator or room remarketer, but no actu-
al refund of moneys shall be made to such operator  or  room  remarketer
until he or she shall first establish to the satisfaction of the commis-
sioner of finance, under such regulations as the commissioner of finance
may  prescribe, that he or she has repaid to the occupant the amount for
which the application for refund is made.  The commissioner  of  finance

S. 6610--B                         60                         A. 9710--C

may, in lieu of any refund required to be made, allow credit therefor on
payments due from the applicant.
  S  11. Paragraph 1 of subdivision (h) of section 11-2515 of the admin-
istrative code of the city of New York, as amended by local  law  number
43  of  the  city  of  New York for the year 2009, is amended to read as
follows:
  (1) Officers of a corporate operator or room remarketer  and  partners
in  a  partnership  which  is  an  operator  or room remarketer shall be
personally liable for the tax [or portion  of  such  tax]  collected  or
required  to  be collected by such corporation or partnership under this
chapter, and subject to the  penalties  and  interest  imposed  by  this
section.
  S  12. This act shall take effect September 1, 2010 and shall apply in
accordance with the applicable transitional provisions of sections  1106
and 1217 of the tax law.

                                 PART BB

  Intentionally omitted.

                                 PART CC

  Section  1.  Paragraph  1  of subsection (c) of section 615 of the tax
law, as amended by chapter 497 of the laws of 1997, is amended  to  read
as follows:
  (1)  STATE  AND LOCAL GENERAL SALES TAXES AS DEFINED IN SUBSECTION (B)
OF SECTION ONE HUNDRED SIXTY-FOUR OF THE INTERNAL REVENUE CODE,  TO  THE
EXTENT  INCLUDED  IN FEDERAL ITEMIZED DEDUCTIONS OR income taxes imposed
by this state or any other taxing  jurisdiction,  except  city  earnings
taxes  on  nonresidents  that are imposed upon and paid by taxpayers for
taxable years beginning after December  thirty-first,  nineteen  hundred
seventy and before January first, two thousand, pursuant to the authori-
ty  of  FORMER  section  twenty-five-m  of  the general city law, to the
extent that the amount of such tax exceeds the tax computed  as  if  the
rates  were one-fourth of one percent of wages subject to tax and three-
eighths of one percent of net earnings from self-employment  subject  to
tax;
  S 2. Paragraph 1 of subdivision (c) of section 11-1715 of the adminis-
trative  code  of the city of New York, as amended by chapter 497 of the
laws of 1997, is amended to read as follows:
  (1) STATE AND LOCAL GENERAL SALES TAXES AS DEFINED IN  SUBSECTION  (B)
OF  SECTION  ONE HUNDRED SIXTY-FOUR OF THE INTERNAL REVENUE CODE, TO THE
EXTENT INCLUDED IN FEDERAL ITEMIZED DEDUCTIONS OR income  taxes  imposed
by  this  city  or  any  other taxing jurisdiction, except city earnings
taxes on nonresidents that are imposed upon and paid  by  taxpayers  for
taxable  years  beginning  after December thirty-first, nineteen hundred
seventy and before January first, two thousand, pursuant to the authori-
ty of FORMER section twenty-five-m of  the  general  city  law,  to  the
extent  that  the  amount of such tax exceeds the tax computed as if the
rates were one-fourth of one percent of wages subject to tax and  three-
eighths  of  one percent of net earnings from self-employment subject to
tax;
  S 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2010.

                                 PART DD

S. 6610--B                         61                         A. 9710--C

  Intentionally omitted.

                                 PART EE

  Section  1. Subdivision 1 of section 54-f of the state finance law, as
added by section 139 of part A of chapter 389 of the laws  of  1997,  is
amended to read as follows:
  1. Except as otherwise provided by law, the provisions of this section
shall  be utilized by the state to calculate the annual amount due to be
paid to the city of New York by the state to reimburse such city for tax
receipts foregone (A) as a result of a chapter of the laws  of  nineteen
hundred  ninety-seven  that reduced the rates of tax imposed pursuant to
authority granted under section thirteen hundred one of the tax law  and
that  created  a new "state school tax reduction credit" against liabil-
ities imposed pursuant to the authority granted the city by such section
and other statutes authorizing the imposition of a personal  income  tax
on  the  residents  of  such  city,  AND (B) AS A RESULT OF THE TAX RATE
ADJUSTMENTS MADE BY A CHAPTER OF THE LAWS  OF  TWO  THOUSAND  TEN  WHICH
AMENDED THIS SUBDIVISION.
  S  2.  Paragraphs  1, 2 and 3 of subsection (a) of section 1304 of the
tax law, as amended by section 134 of part A of chapter 389 of the  laws
of  1997, subparagraph (A) of paragraph 1, subparagraph (A) of paragraph
2 and subparagraph (A) of paragraph 3 as amended by chapter 525  of  the
laws of 2008, are amended to read as follows:
  (1)  Resident  married  individuals  filing joint returns and resident
surviving spouses. The tax under this section for each taxable  year  on
the  city  taxable  income of every city resident married individual who
makes a single return jointly with his or her  spouse  under  subsection
(b)  of  section  thirteen  hundred  six of this article and on the city
taxable income of every city resident surviving spouse shall  be  deter-
mined in accordance with the following tables:

  (A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND NINE:
IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $21,600                       2.55% OF THE CITY TAXABLE INCOME
OVER $21,600 BUT NOT                   $551 PLUS 3.1% OF EXCESS
OVER $45,000                             OVER $21,600
OVER $45,000 BUT NOT                   $1,276 PLUS 3.15% OF EXCESS
OVER $90,000                             OVER $45,000
OVER $90,000 BUT NOT                   $2,694 PLUS 3.2% OF EXCESS
OVER $500,000                            OVER $90,000
OVER $500,000                          $15,814 PLUS 3.4% OF EXCESS
                                         OVER $500,000

  (B)  For  taxable years beginning in two thousand one and two thousand
two and for taxable years beginning after two thousand five  and  before
two thousand [twelve] TEN:

If the city taxable income is:         The tax is:
Not over $21,600                       2.55% of the city taxable income
Over $21,600 but not                   $551 plus 3.1% of excess
over $45,000                             over $21,600
Over $45,000 but not                   $1,276 plus 3.15% of excess
over $90,000                             over $45,000
Over $90,000                           $2,694 plus 3.2% of excess
                                         over $90,000

S. 6610--B                         62                         A. 9710--C

  [(B) For taxable years beginning in two thousand:

If the city taxable income is:         The tax is:
Not over $21,600                       2.65% of the city taxable income
Over $21,600 but not                   $572 plus 3.215% of excess
over $45,000                             over $21,600
Over $45,000 but not                   $1,325 plus 3.265% of excess
over $90,000                             over $45,000
Over $90,000                           $2,794 plus 3.315% of excess
                                         over $90,000

  (C) For taxable years beginning in nineteen hundred ninety-nine:

If the city taxable income is:         The tax is:
Not over $21,600                       2.675% of the city taxable income
Over $21,600 but not                   $578 plus 3.2575% of excess
over $45,000                             over $21,600
Over $45,000 but not                   $1,340 plus 3.3075% of excess
over $90,000                             over $45,000
Over $90,000                           $2,828 plus 3.3575% of excess
                                         over $90,000

  (D)  For taxable years beginning after nineteen hundred ninety-six and
before nineteen hundred ninety-nine:

If the city taxable income is:         The tax is:
Not over $21,600                       2.7% of the city taxable income
Over $21,600 but not                   $583 plus 3.3% of excess
over $45,000                             over $21,600
Over $45,000 but not                   $1,355 plus 3.35% of excess
over $90,000                             over $45,000
Over $90,000                           $2,863 plus 3.4% of excess
                                         over $90,000

  (E) For taxable years beginning in nineteen hundred ninety-six:

If the city taxable income is:         The tax is:
Not over $14,400                       2.6% of the city taxable income
Over $14,400 but not                   $374 plus 3% of excess
over $27,000                             over $14,400
Over $27,000 but not                   $752 plus 3.3% of excess
over $45,000                             over $27,000
Over $45,000 but not                   $1,346 plus 3.35% of excess
over $108,000                            over $45,000
Over $108,000                          $3,457 plus 3.4% of excess
                                         over $108,000

  (F) For taxable years beginning in nineteen hundred ninety-five:

If the city taxable income is:         The tax is:
Not over $14,400                       2.25% of the city taxable income
Over $14,400 but not                   $324 plus 2.85% of excess
over $27,000                             over $14,400
Over $27,000 but not                   $683 plus 3.3% of excess
over $45,000                             over $27,000
Over $45,000 but not                   $1,278 plus 3.35% of excess

S. 6610--B                         63                         A. 9710--C

over $108,000                            over $45,000
Over $108,000                          $3,388 plus 3.4% of excess
                                         over $108,000
  (G)  For  taxable  years beginning after nineteen hundred eighty-eight
and before nineteen hundred ninety-five:

If the city taxable income is:         The tax is:
Not over $14,400                       2.2% of the city taxable income
Over $14,400 but not                   $317 plus 2.7% of excess
over $27,000                             over $14,400
Over $27,000 but not                   $657 plus 3.2% of excess
over $45,000                             over $27,000
Over $45,000 but not                   $1,233 plus 3.35% of excess
over $108,000                            over $45,000
Over $108,000                          $3,344 plus 3.4% of excess
                                         over $108,000

  (H) For taxable years beginning in nineteen hundred eighty-eight:

If the city taxable income is:         The tax is:
Not over $4,500                        1.5% of the city taxable income
Over $4,500 but not                    $68 plus 2.2% of excess
over $16,200                             over $4,500
Over $16,200 but not                   $325 plus 2.7% of excess
over $27,000                             over $16,200
Over $27,000 but not                   $617 plus 3.2% of excess
over $45,000                             over $27,000
Over $45,000 but not                   $1,193 plus 3.4% of excess
over $108,000                            over $45,000
Over $108,000                          $3,335 plus 3.5% of excess
                                         over $108,000

  (I) For taxable years beginning in nineteen hundred eighty-seven:

If the city taxable income is:         The tax is:
Not over $4,125                        1.5% of the city taxable income
Over $4,125 but not                    $62 plus 1.8% of excess
over $8,250                              over $4,125
Over $8,250 but not                    $136 plus 2.2% of excess
over $14,850                             over $8,250
Over $14,850 but not                   $281 plus 2.6% of excess
over $21,450                             over $14,850
Over $21,450 but not                   $453 plus 3% of excess
over $28,050                             over $21,450
Over $28,050 but not                   $651 plus 3.4% of excess
over $34,650                             over $28,050
Over $34,650 but not                   $875 plus 3.7% of excess
over $41,250                             over $34,650
Over $41,250 but not                   $1,119 plus 3.9% of excess
over $99,000                             over $41,250
Over $99,000                           $3,371 plus 4.1% of excess
                                         over $99,000]
  (2) Resident heads of households. The tax under this section for  each
taxable year on the city taxable income of every city resident head of a
household shall be determined in accordance with the following tables:
  (A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND NINE:

S. 6610--B                         64                         A. 9710--C

IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $14,400                       2.55% OF THE CITY TAXABLE INCOME
OVER $14,400 BUT NOT                   $367 PLUS 3.1% OF EXCESS
OVER $30,000                             OVER $14,400
OVER $30,000 BUT NOT                   $851 PLUS 3.15% OF EXCESS
OVER $60,000                             OVER $30,000
OVER $60,000 BUT NOT                   $1,796 PLUS 3.2% OF EXCESS
OVER $500,000                            OVER $60,000
OVER $500,000                          $15,876 PLUS 3.4% OF EXCESS
                                         OVER $500,000

  (B)  For  taxable years beginning in two thousand one and two thousand
two and for taxable years beginning after two thousand five  and  before
two thousand [twelve] TEN:

If the city taxable income is:         The tax is:
Not over $14,400                       2.55% of the city taxable income
Over $14,400 but not                   $367 plus 3.1% of excess
over $30,000                             over $14,400
Over $30,000 but not                   $851 plus 3.15% of excess
over $60,000                             over $30,000
Over $60,000                           $1,796 plus 3.2% of excess
                                         over $60,000

  [(B) For taxable years beginning in two thousand:

If the city taxable income is:         The tax is:
Not over $14,400                       2.65% of the city taxable income
Over $14,400 but not                   $382 plus 3.215% of excess
over $30,000                             over $14,400
Over $30,000 but not                   $883 plus 3.265% of excess
over $60,000                             over $30,000
Over $60,000 but not                   $1,863 plus 3.315% of excess
                                         over $60,000

  (C) For taxable years beginning in nineteen hundred ninety-nine:

If the city taxable income is:         The tax is:
Not over $14,400                       2.675% of the city taxable income
Over $14,400 but not                   $385 plus 3.2575% of excess
over $30,000                             over $14,400
Over $30,000 but not                   $893 plus 3.3075% of excess
over $60,000                             over $30,000
Over $60,000                           $1,886 plus 3.3575% of excess
                                         over $60,000

  (D)  For taxable years beginning after nineteen hundred ninety-six and
before nineteen hundred ninety-nine:

If the city taxable income is:         The tax is:
Not over $14,400                       2.7% of the city taxable income
Over $14,400 but not                   $389 plus 3.3% of excess
over $30,000                             over $14,400
Over $30,000 but not                   $904 plus 3.35% of excess
over $60,000                             over $30,000
Over $60,000                           $1,909 plus 3.4% of excess

S. 6610--B                         65                         A. 9710--C

                                         over $60,000

  (E) For taxable years beginning in nineteen hundred ninety-six:

If the city taxable income is:         The tax is:
Not over $9,600                        2.6% of the city taxable income
Over $9,600 but not                    $250 plus 3% of excess
over $18,000                             over $9,600
Over $18,000 but not                   $502 plus 3.3% of excess
over $30,000                             over $18,000
Over $30,000 but not                   $898 plus 3.35% of excess
over $72,000                             over $30,000
Over $72,000                           $2,305 plus 3.4% of excess
                                         over $72,000

  (F) For taxable years beginning in nineteen hundred ninety-five:

If the city taxable income is:         The tax is:
Not over $9,200                        2.25% of the city taxable income
Over $9,200 but not                    $207 plus 2.85% of excess
over $17,250                             over $9,200
Over $17,250 but not                   $436 plus 3.3% of excess
over $28,750                             over $17,250
Over $28,750 but not                   $816 plus 3.35% of excess
over $69,000                             over $28,750
Over $69,000                           $2,164 plus 3.4% of excess
                                         over $69,000

  (G)  For  taxable  years beginning after nineteen hundred eighty-eight
and before nineteen hundred ninety-five:

If the city taxable income is:         The tax is:
Not over $8,800                        2.2% of the city taxable income
Over $8,800 but not                    $194 plus 2.7% of excess
over $16,500                             over $8,800
Over $16,500 but not                   $402 plus 3.2% of excess
over $27,500                             over $16,500
Over $27,500 but not                   $754 plus 3.35% of excess
over $66,000                             over $27,500
Over $66,000                           $2,044 plus 3.4% of excess
                                         over $66,000

  (H) For taxable years beginning in nineteen hundred eighty-eight:

If the city taxable income is:         The tax is:
Not over $2,750                        1.5% of the city taxable income
Over $2,750 but not                    $41 plus 2.2% of excess
over $9,900                              over $2,750
Over $9,900 but not                    $198 plus 2.7% of excess
over $16,500                             over $9,900
Over $16,500 but not                   $376 plus 3.2% of excess
over $27,500                             over $16,500
Over $27,500 but not                   $728 plus 3.4% of excess
over $66,000                             over $27,500
Over $66,000                           $2,037 plus 3.5% of excess
                                         over $66,000

S. 6610--B                         66                         A. 9710--C

  (I) For taxable years beginning in nineteen hundred eighty-seven:

If the city taxable income is:         The tax is:
Not over $2,750                        1.5% of the city taxable income
Over $2,750 but not                    $41 plus 1.8% of excess
over $5,500                              over $2,750
Over $5,500 but not                    $91 plus 2.2% of excess
over $9,900                              over $5,500
Over $9,900 but not                    $188 plus 2.6% of excess
over $14,300                             over $9,900
Over $14,300 but not                   $302 plus 3% of excess
over $18,700                             over $14,300
Over $18,700 but not                   $434 plus 3.4% of excess
over $23,100                             over $18,700
Over $23,100 but not                   $584 plus 3.7% of excess
over $27,500                             over $23,100
Over $27,500 but not                   $747 plus 3.9% of excess
over $66,000                             over $27,500
Over $66,000                           $2,249 plus 4.1% of excess
                                         over $66,000]

  (3)  Resident  unmarried  individuals,  resident  married  individuals
filing separate returns and resident estates and trusts. The  tax  under
this  section  for each taxable year on the city taxable income of every
city resident individual who is not a city resident  married  individual
who  makes  a  single  return  jointly  with  his  or  her  spouse under
subsection (b) of section thirteen hundred six OF THIS ARTICLE or a city
resident head of household or a city resident surviving spouse,  and  on
the city taxable income of every city resident estate and trust shall be
determined in accordance with the following tables:

(A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND NINE:

IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $12,000                       2.55% OF THE CITY TAXABLE INCOME
OVER $12,000 BUT NOT                   $306 PLUS 3.1% OF EXCESS
OVER $25,000                             OVER $12,000
OVER $25,000 BUT NOT                   $709 PLUS 3.15% OF EXCESS
OVER $50,000                             OVER $25,000
OVER $50,000 BUT NOT                   $1,497 PLUS 3.2% OF EXCESS
OVER $500,000                          OVER $50,000
OVER $500,000                          $15,897 PLUS 3.4%
                                       OF EXCESS OVER $500,000
(B) For taxable years beginning in two thousand one and two thousand two
and  for  taxable years beginning after two thousand five and before two
thousand [twelve] TEN:

If the city taxable income is:         The tax is:
Not over $12,000                       2.55% of the city taxable income
Over $12,000 but not                   $306 plus 3.1% of excess
over $25,000                             over $12,000
Over $25,000 but not                   $709 plus 3.15% of excess
over $50,000                             over $25,000
Over $50,000                           $1,497 plus 3.2% of excess
                                         over $50,000

S. 6610--B                         67                         A. 9710--C

  [(B) For taxable years beginning in two thousand:

If the city taxable income is:         The tax is:
Not over $12,000                       2.65% of the city taxable income
Over $12,000 but not                   $318 plus 3.215% of excess
over $25,000                             over $12,000
Over $25,000 but not                   $736 plus 3.265% of excess
over $50,000                             over $25,000
Over $50,000                           $1,552 plus 3.315% of excess
                                         over $50,000

  (C) For taxable years beginning in nineteen hundred ninety-nine:

If the city taxable income is:         The tax is:
Not over $12,000                       2.675% of the city taxable income
Over $12,000 but not                   $321 plus 3.2575% of excess
over $25,000                             over $12,000
Over $25,000 but not                   $744 plus 3.3075% of excess
over $50,000                             over $25,000
Over $50,000                           $1,571 plus 3.3575% of excess
                                         over $50,000

  (D)  For taxable years beginning after nineteen hundred ninety-six and
before nineteen hundred ninety-nine:

If the city taxable income is:         The tax is:
Not over $12,000                       2.7% of the city taxable income
Over $12,000 but not                   $324 plus 3.3% of excess
over $25,000                             over $12,000
Over $25,000 but not                   $753 plus 3.35% of excess
over $50,000                             over $25,000
Over $50,000                           $1,591 plus 3.4% of excess
                                         over $50,000

  (E) For taxable years beginning in nineteen hundred ninety-six:

If the city taxable income is:         The tax is:
Not over $8,000                        2.6% of the city taxable income
Over $8,000 but not                    $208 plus 3% of excess
over $15,000                             over $8,000
Over $15,000 but not                   $418 plus 3.3% of excess
over $25,000                             over $15,000
Over $25,000 but not                   $748 plus 3.35% of excess
over $60,000                             over $25,000
Over $60,000                           $1,920 plus 3.4% of excess
                                         over $60,000

  (F) For taxable years beginning in nineteen hundred ninety-five:

If the city taxable income is:         The tax is:
Not over $8,000                        2.25% of the city taxable income
Over $8,000 but not                    $180 plus 2.85% of excess
over $15,000                             over $8,000
Over $15,000 but not                   $380 plus 3.3% of excess
over $25,000                             over $15,000
Over $25,000 but not                   $710 plus 3.35% of excess

S. 6610--B                         68                         A. 9710--C

over $60,000                             over $25,000
Over $60,000                           $1,883 plus 3.4% of excess
                                         over $60,000

  (G)  For  taxable  years beginning after nineteen hundred eighty-eight
and before nineteen hundred ninety-five:

If the city taxable income is:         The tax is:
Not over $8,000                        2.2% of the city taxable income
Over $8,000 but not                    $176 plus 2.7% of excess
over $15,000                             over $8,000
Over $15,000 but not                   $365 plus 3.2% of excess
over $25,000                             over $15,000
Over $25,000 but not                   $685 plus 3.35% of excess
over $60,000                             over $25,000
Over $60,000                           $1,858 plus 3.4% of excess
                                         over $60,000

  (H) For taxable years beginning in nineteen hundred eighty-eight:

If the city taxable income is:         The tax is:
Not over $2,500                        1.5% of the city taxable income
Over $2,500 but not                    $38 plus 2.2% of excess
over $9,000                              over $2,500
Over $9,000 but not                    $181 plus 2.7% of excess
over $15,000                             over $9,000
Over $15,000 but not                   $343 plus 3.2% of excess
over $25,000                             over $15,000
Over $25,000 but not                   $663 plus 3.4% of excess
over $60,000                             over $25,000
Over $60,000                           $1,853 plus 3.5% of excess
                                         over $60,000

  (I) For taxable years beginning in nineteen hundred eighty-seven:

If the city taxable income is:         The tax is:
Not over $2,500                        1.5% of the city taxable income
Over $2,500 but not                    $38 plus 1.8% of excess
over $5,000                              over $2,500
Over $5,000 but not                    $83 plus 2.2% of excess
over $9,000                              over $5,000
Over $9,000 but not                    $171 plus 2.6% of excess
over $13,000                             over $9,000
Over $13,000 but not                   $275 plus 3% of excess
over $17,000                             over $13,000
Over $17,000 but not                   $395 plus 3.4% of excess
over $21,000                             over $17,000
Over $21,000 but not                   $531 plus 3.7% of excess
over $25,000                             over $21,000
Over $25,000 but not                   $679 plus 3.9% of excess
over $60,000                             over $25,000
Over $60,000                           $2,044 plus 4.1% of excess
                                         over $60,000]

  S 3. Paragraphs 1, 2 and 3 of subdivision (a) of  section  11-1701  of
the  administrative  code of the city of New York, as amended by section

S. 6610--B                         69                         A. 9710--C

136 of part A of chapter 389 of the laws of 1997,  subparagraph  (A)  of
paragraph  1,  subparagraph  (A)  of paragraph 2 and subparagraph (A) of
paragraph 3 as amended by chapter 525 of the laws of 2008,  are  amended
to read as follows:
  (1)  Resident  married  individuals  filing joint returns and resident
surviving spouses. The tax under this section for each taxable  year  on
the  city  taxable  income of every city resident married individual who
makes a single return jointly with his or her spouse  under  subdivision
(b) of section 11-1751 OF THIS CHAPTER and on the city taxable income of
every  city  resident surviving spouse shall be determined in accordance
with the following tables:

(A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND NINE:

IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $21,600                       2.55% OF THE CITY TAXABLE INCOME
OVER $21,600 BUT NOT                   $551 PLUS 3.1% OF EXCESS
OVER $45,000                            OVER $21,600
OVER $45,000 BUT NOT                   $1,276 PLUS 3.15% OF EXCESS
OVER $90,000                            OVER $45,000
OVER $90,000 BUT NOT                   $2,694 PLUS 3.2% OF EXCESS
OVER $500,000                           OVER $90,000
OVER $500,000                          $15,814 PLUS 3.4% OF EXCESS
                                        OVER $500,000
  (B) For taxable years beginning in two thousand one and  two  thousand
two  and  for taxable years beginning after two thousand five and before
two thousand [twelve] TEN:

If the city taxable income is:         The tax is:
Not over $21,600                       2.55% of the city taxable income
Over $21,600 but not                   $551 plus 3.1% of excess
over $45,000                            over $21,600
Over $45,000 but not                   $1,276 plus 3.15% of excess
over $90,000                            over $45,000
Over $90,000                           $2,694 plus 3.2% of excess
                                        over $90,000
  [(B) For taxable years beginning in two thousand:

If the city taxable income is:         The tax is:
Not over $21,600                       2.65% of the city taxable income
Over $21,600 but not                   $572 plus 3.215% of excess
over $45,000                            over $21,600
Over $45,000 but not                   $1,325 plus 3.265% of excess
over $90,000                            over $45,000
Over $90,000                           $2,794 plus 3.315% of excess
                                        over $90,000

  (C) For taxable years beginning in nineteen hundred ninety-nine:

If the city taxable income is:         The tax is:
Not over $21,600                       2.675% of the city taxable income
Over $21,600 but not                   $578 plus 3.2575% of excess
over $45,000                            over $21,600
Over $45,000 but not                   $1,340 plus 3.3075% of excess
over $90,000                            over $45,000
Over $90,000                           $2,828 plus 3.3575% of excess

S. 6610--B                         70                         A. 9710--C

                                        over $90,000

  (D)  For taxable years beginning after nineteen hundred ninety-six and
before nineteen hundred ninety-nine:

If the city taxable income is:         The tax is:
Not over $21,600                       2.7% of the city taxable income
Over $21,600 but not over              $583 plus 3.3% of excess
$45,000                                 over $21,600
Over $45,000 but not over              $1,355 plus 3.35% of excess
$90,000                                 over $45,000
Over $90,000                           $2,863 plus 3.4% of excess
                                        over $90,000

  (E) For taxable years beginning in nineteen hundred ninety-six:

If the city taxable income is:         The tax is:
Not over $14,400                       2.6% of the city taxable income
Over $14,400 but not                   $374 plus 3% of excess
over $27,000                            over $14,400
Over $27,000 but not                   $752 plus 3.3% of excess
over $45,000                            over $27,000
Over $45,000 but not                   $1,346 plus 3.35% of excess
over $108,000                           over $45,000
Over $108,000                          $3,457 plus 3.4% of excess
                                        over $108,000

  (F) For taxable years beginning in nineteen hundred ninety-five:

If the city taxable income is:         The tax is:
Not over $14,400                       2.25% of the city taxable income
Over $14,400 but not over              $324 plus 2.85% of excess
$27,000                                 over $14,400
Over $27,000 but not over              $683 plus 3.3% of excess
$45,000                                 over $27,000
Over $45,000 but not over              $1,278 plus 3.35% of excess
$108,000                                over $45,000
Over $108,000                          $3,388 plus 3.4% of excess
                                        over $108,000

  (G) For taxable years beginning after  nineteen  hundred  eighty-eight
and before nineteen hundred ninety-five:

If the city taxable income is:         The tax is:
Not over $14,400                       2.2% of the city taxable income
Over $14,400 but not over              $317 plus 2.7% of excess
$27,000                                 over $14,400
Over $27,000 but not over              $657 plus 3.2% of excess
$45,000                                 over $27,000
Over $45,000 but not over              $1,233 plus 3.35% of excess
$108,000                                over $45,000
Over $108,000                          $3,344 plus 3.4% of excess
                                        over $108,000

  (H) For taxable years beginning in nineteen hundred eighty-eight:

S. 6610--B                         71                         A. 9710--C

If the city taxable income is:         The tax is:
Not over $4,500                        1.5% of the city taxable income
Over $4,500 but not over               $68 plus 2.2% of excess
$16,200                                 over $4,500
Over $16,200 but not over              $325 plus 2.7% of excess
$27,000                                 over $16,200
Over $27,000 but not over              $617 plus 3.2% of excess
$45,000                                 over $27,000
Over $45,000 but not over              $1,193 plus 3.4% of excess
$108,000                                over $45,000
Over $108,000                          $3,335 plus 3.5% of excess
                                        over $108,000

  (I) For taxable years beginning in nineteen hundred eighty-seven:

If the city taxable income is:         The tax is:
Not over $4,125                        1.5% of the city taxable income
Over $4,125 but not over               $62 plus 1.8% of excess
$8,250                                   over $4,125
Over $8,250 but not over               $136 plus 2.2% of excess
$14,850                                  over $8,250
Over $14,850 but not over              $281 plus 2.6% of excess
$21,450                                  over $14,850
Over $21,450 but not over              $453 plus 3% of excess
$28,050                                  over $21,450
Over $28,050 but not over              $651 plus 3.4% of excess
$34,650                                  over $28,050
Over $34,650 but not over              $875 plus 3.7% of excess
$41,250                                  over $34,650
Over $41,250 but not over              $1,119 plus 3.9% of excess
$99,000                                  over $41,250
Over $99,000                           $3,371 plus 4.1% of excess
                                         over $99,000]

  (2)  Resident heads of households. The tax under this section for each
taxable year on the city taxable income of every city resident head of a
household shall be determined in accordance with the following tables:
  (A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND NINE:

IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $14,400                       2.55% OF THE CITY TAXABLE INCOME
OVER $14,400 BUT NOT                   $367 PLUS 3.1% OF EXCESS
OVER $30,000                            OVER $14,400
OVER $30,000 BUT NOT                   $851 PLUS 3.15% OF EXCESS
OVER $60,000                            OVER $30,000
OVER $60,000 BUT NOT                   $1,796 PLUS 3.2% OF EXCESS
OVER $500,000                           OVER $60,000
OVER $500,000                          $15,876 PLUS 3.4% OF EXCESS
                                        OVER $500,000

  (B) For taxable years beginning in two thousand one and  two  thousand
two  and  for taxable years beginning after two thousand five and before
two thousand [twelve] TEN:

If the city taxable income is:         The tax is:
Not over $14,400                       2.55% of the city taxable income

S. 6610--B                         72                         A. 9710--C

Over $14,400 but not                   $367 plus 3.1% of excess
over $30,000                            over $14,400
Over $30,000 but not                   $851 plus 3.15% of excess
over $60,000                            over $30,000
Over $60,000                           $[1,769] 1,796
                                       plus 3.2% of excess
                                        over $60,000
  [(B) For taxable years beginning in two thousand:

If the city taxable income is:         The tax is:
Not over $14,400                       2.65% of the city taxable income
Over $14,400 but not                   $382 plus 3.215% of excess
over $30,000                            over $14,400
Over $30,000 but not                   $883 plus 3.265% of excess
over $60,000                            over $30,000
Over $60,000                           $1,863 plus 3.315% of excess
                                        over $60,000

  (C) For taxable years beginning in nineteen hundred ninety-nine:

If the city taxable income is:         The tax is:
Not over $14,400                       2.675% of the city taxable income
Over $14,400 but not                   $385 plus 3.2575% of excess
over $30,000                            over $14,400
Over $30,000 but not                   $893 plus 3.3075% of excess
over $60,000                            over $30,000
Over $60,000                           $1,886 plus 3.3575% of excess
                                        over $60,000

  (D)  For taxable years beginning after nineteen hundred ninety-six and
before nineteen hundred ninety-nine:

If the city taxable income is:         The tax is:
Not over $14,400                       2.7% of the city taxable income
Over $14,400 but not                   $389 plus 3.3% of excess
over $30,000                            over $14,400
Over $30,000 but not over              $904 plus 3.35% of excess
$60,000                                 over $30,000
Over $60,000                           $1,909 plus 3.4% of excess
                                        over $60,000

  (E) For taxable years beginning in nineteen hundred ninety-six:

If the city taxable income is:         The tax is:
Not over $9,600                        2.6% of the city taxable income
Over $9,600 but not over               $250 plus 3% of excess
$18,000                                 over $9,600
Over $18,000 but not over              $502 plus 3.3% of excess
$30,000                                 over $18,000
Over $30,000 but not over              $898 plus 3.35% of excess
$72,000                                 over $30,000
Over $72,000                           $2,305 plus 3.4% of excess
                                        over $72,000

  (F) For taxable years beginning in nineteen hundred ninety-five:

S. 6610--B                         73                         A. 9710--C

If the city taxable income is:         The tax is:
Not over $9,200                        2.25% of the city taxable income
Over $9,200 but not over               $207 plus 2.85% of excess
$17,250                                 over $9,200
Over $17,250 but not over              $436 plus 3.3% of excess
$28,750                                 over $17,250
Over $28,750 but not over              $816 plus 3.35% of excess
$69,000                                 over $28,750
Over $69,000                           $2,164 plus 3.4% of excess
                                        over $69,000

  (G)  For  taxable  years beginning after nineteen hundred eighty-eight
and before nineteen hundred ninety-five:

If the city taxable income is:         The tax is:
Not over $8,800                        2.2% of the city taxable income
Over $8,800 but not over               $194 plus 2.7% of excess
$16,500                                 over $8,800
Over $16,500 but not over              $402 plus 3.2% of excess
$27,500                                 over $16,500
Over $27,500 but not over              $754 plus 3.35% of excess
$66,000                                 over $27,500
Over $66,000                           $2,044 plus 3.4% of excess
                                        over $66,000

  (H) For taxable years beginning in nineteen hundred eighty-eight:

If the city taxable income is:         The tax is:
Not over $2,750                        1.5% of the city taxable income
Over $2,750 but not over               $41 plus 2.2% of excess
$9,900                                  over $2,750
Over $9,900 but not over               $198 plus 2.7% of excess
$16,500                                 over $9,900
Over $16,500 but not over              $376 plus 3.2% of excess
$27,500                                 over $16,500
Over $27,500 but not over              $728 plus 3.4% of excess
$66,000                                 over $27,500
Over $66,000                           $2,037 plus 3.5% of excess
                                        over $66,000

  (I) For taxable years beginning in nineteen hundred eighty-seven:

If the city taxable income is:         The tax is:
Not over $2,750                        1.5% of the city taxable income
Over $2,750 but not over               $41 plus 1.8% of excess
$5,500                                   over $2,750
Over $5,500 but not over               $91 plus 2.2% of excess
$9,900                                   over $5,500
Over $9,900 but not over               $188 plus 2.6% of excess
$14,300                                  over $9,900
Over $14,300 but not over              $302 plus 3% of excess
$18,700                                  over $14,300
Over $18,700 but not over              $434 plus 3.4% of excess
$23,100                                  over $18,700
Over $23,100 but not over              $584 plus 3.7% of excess
$27,500                                  over $23,100

S. 6610--B                         74                         A. 9710--C

Over $27,500 but not over              $747 plus 3.9% of excess
$66,000                                  over $27,500
Over $66,000                           $2,249 plus 4.1% of excess
                                         over $66,000]

  (3)  Resident  unmarried  individuals,  resident  married  individuals
filing separate returns and resident estates and trusts. The  tax  under
this  section  for each taxable year on the city taxable income of every
city resident individual who is not a married  individual  who  makes  a
single  return  jointly  with his or her spouse under subdivision (b) of
section 11-1751 OF THIS CHAPTER or a city resident head of  a  household
or  a  city resident surviving spouse, and on the city taxable income of
every city resident estate and trust shall be determined  in  accordance
with the following tables:

(A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND NINE:

IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $12,000                       2.55% OF THE CITY TAXABLE INCOME
OVER $12,000 BUT NOT                   $306 PLUS 3.1% OF EXCESS
OVER $25,000                            OVER $12,000
OVER $25,000 BUT NOT                   $709 PLUS 3.15% OF EXCESS
OVER $50,000                            OVER $25,000
OVER $50,000 BUT NOT                   $1,497 PLUS 3.2% OF EXCESS
OVER $500,000                           OVER $50,000
OVER $500,000                          $15,897 PLUS 3.4% OF EXCESS
                                        OVER $500,000

  (B)  For  taxable years beginning in two thousand one and two thousand
two and for taxable years beginning after two thousand five  and  before
two thousand [twelve] TEN:

If the city taxable income is:         The tax is:
Not over $12,000                       2.55% of the city taxable income
Over $12,000 but not                   $306 plus 3.1% of excess
over $25,000                            over $12,000
Over $25,000 but not                   $709 plus 3.15% of excess
over $50,000                            over $25,000
Over $50,000                           $1,497 plus 3.2% of excess
                                        over $50,000
  [(B) For taxable years beginning in two thousand:

If the city taxable income is:         The tax is:
Not over $12,000                       2.65% of the city taxable income
Over $12,000 but not                   $318 plus 3.215% of excess
over $25,000                            over $12,000
Over $25,000 but not                   $736 plus 3.265% of excess
over $50,000                            over $25,000
Over $50,000                           $1,552 plus 3.315% of excess
                                        over $50,000

  (C) For taxable years beginning in nineteen hundred ninety-nine:

If the city taxable income is:         The tax is:
Not over $12,000                       2.675% of the city taxable income
Over $12,000 but not                   $321 plus 3.2575% of excess

S. 6610--B                         75                         A. 9710--C

over $25,000                            over $12,000
Over $25,000 but not                   $744 plus 3.3075% of excess
over $50,000                            over $25,000
Over $50,000                           $1,571 plus 3.3575% of excess
                                        over $50,000

  (D)  For taxable years beginning after nineteen hundred ninety-six and
before nineteen hundred ninety-nine:

If the city taxable income is:         The tax is:
Not over $12,000                       2.7% of the city taxable income
Over $12,000 but not over              $324 plus 3.3% of excess
$25,000                                 over $12,000
Over $25,000 but not over              $753 plus 3.35% of excess
$50,000                                 over $25,000
Over $50,000                           $1,591 plus 3.4% of excess
                                        over $50,000

  (E) For taxable years beginning in nineteen hundred ninety-six:

If the city taxable income is:         The tax is:
Not over $8,000                        2.6% of the city taxable income
Over $8,000 but not over               $208 plus 3% of excess
$15,000                                 over $8,000
Over $15,000 but not over              $418 plus 3.3% of excess
$25,000                                 over $15,000
Over $25,000 but not over              $748 plus 3.35% of excess
$60,000                                 over $25,000
Over $60,000                           $1,920 plus 3.4% of excess
                                        over $60,000

  (F) For taxable years beginning in nineteen hundred ninety-five:

If the city taxable income is:         The tax is:
Not over $8,000                        2.25% of the city taxable income
Over $8,000 but not over               $180 plus 2.85% of excess
$15,000                                 over $8,000
Over $15,000 but not over              $380 plus 3.3% of excess
$25,000                                 over $15,000
Over $25,000 but not over              $710 plus 3.35% of excess
$60,000                                 over $25,000
Over $60,000                           $1,883 plus 3.4% of excess
                                        over $60,000

  (G) For taxable years beginning after  nineteen  hundred  eighty-eight
and before nineteen hundred ninety-five:

If the city taxable income is:         The tax is:
Not over $8,000                        2.2% of the city taxable income
Over $8,000 but not over               $176 plus 2.7% of excess
$15,000                                 over $8,000
Over $15,000 but not over              $365 plus 3.2% of excess
$25,000                                 over $15,000
Over $25,000 but not over              $685 plus 3.35% of excess
$60,000                                 over $25,000
Over $60,000                           $1,858 plus 3.4% of excess

S. 6610--B                         76                         A. 9710--C

                                        over $60,000

  (H) For taxable years beginning in nineteen hundred eighty-eight:

If the city taxable income is:         The tax is:
Not over $2,500                        1.5% of the city taxable income
Over $2,500 but not over               $38 plus 2.2% of excess
$9,000                                  over $2,500
Over $9,000 but not over               $181 plus 2.7% of excess
$15,000                                 over $9,000
Over $15,000 but not over              $343 plus 3.2% of excess
$25,000                                 over $15,000
Over $25,000 but not over              $663 plus 3.4% of excess
$60,000                                 over $25,000
Over $60,000                           $1,853 plus 3.5% of excess
                                        over $60,000

  (I) For taxable years beginning in nineteen hundred eighty-seven:

If the city taxable income is:         The tax is:
Not over $2,500                        1.5% of the city taxable income
Over $2,500 but not over               $38 plus 1.8% of excess
$5,000                                  over $2,500
Over $5,000 but not over               $83 plus 2.2% of excess
$9,000                                  over $5,000
Over $9,000 but not over               $171 plus 2.6% of excess
$13,000                                 over $9,000
Over $13,000 but not over              $275 plus 3% of excess
$17,000                                 over $13,000
Over $17,000 but not over              $395 plus 3.4% of excess
$21,000                                 over $17,000
Over $21,000 but not over              $531 plus 3.7% of excess
$25,000                                 over $21,000
Over $25,000 but not over              $679 plus 3.9% of excess
$60,000                                 over $25,000
Over $60,000                           $2,044 plus 4.1% of excess
                                        over $60,000]

  S  4. 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 30
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  2010  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 2010  the  with-
holding  tables  shall  reflect  as  accurately  as practicable the full
amount of tax year 2010 liability so that such  amount  is  withheld  by
December  31, 2010.  Any such regulations to implement a change in with-
holding tables and methods for tax year 2010 shall be adopted and effec-
tive as soon as practicable and the commissioner may  adopt  such  regu-

S. 6610--B                         77                         A. 9710--C

lations  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 accompany 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 law, the provisions
of any other law in  relation  to  such  a  procedure  to  the  contrary
notwithstanding.
  S 5. 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 any  underpay-
ment prior to or 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 6. This act shall take effect immediately.

                                 PART FF

  Section 1.  Subdivision 3 of section 425 of the real property tax  law
is amended by adding a new paragraph (b-1) to read as follows:
  (B-1)  INCOME.   FOR FINAL ASSESSMENT ROLLS TO BE USED FOR THE LEVY OF
TAXES FOR THE TWO THOUSAND ELEVEN-TWO THOUSAND TWELVE  SCHOOL  YEAR  AND
THEREAFTER,  THE  PARCEL'S AFFILIATED INCOME MAY BE NO GREATER THAN FIVE
HUNDRED THOUSAND DOLLARS, AS DETERMINED BY THE COMMISSIONER OF  TAXATION
AND  FINANCE  PURSUANT  TO  SECTION ONE HUNDRED SEVENTY-ONE-U OF THE TAX
LAW, IN ORDER TO BE ELIGIBLE FOR THE BASIC EXEMPTION AUTHORIZED BY  THIS
SECTION.    AS  USED HEREIN, THE TERM "AFFILIATED INCOME" SHALL MEAN THE
COMBINED INCOME OF ALL OF THE OWNERS OF THE PARCEL WHO RESIDED PRIMARILY
THEREON ON THE APPLICABLE TAXABLE STATUS DATE, AND OF ANY OWNERS' SPOUS-
ES RESIDING PRIMARILY THEREON.  FOR EXEMPTIONS ON FINAL ASSESSMENT ROLLS
TO BE USED FOR THE LEVY OF TAXES FOR THE TWO THOUSAND  ELEVEN-TWO  THOU-
SAND  TWELVE  SCHOOL  YEAR,  AFFILIATED INCOME SHALL BE DETERMINED BASED
UPON THE PARTIES' INCOMES FOR THE INCOME TAX YEAR ENDING IN TWO THOUSAND
NINE.  IN EACH SUBSEQUENT SCHOOL YEAR, THE APPLICABLE  INCOME  TAX  YEAR
SHALL  BE  ADVANCED  BY ONE YEAR. THE TERM "INCOME" AS USED HEREIN SHALL
HAVE THE SAME MEANING AS IN SUBDIVISION FOUR OF THIS SECTION.
  S 2. The tax law is amended by adding a new section 171-u to  read  as
follows:
  S  171-U. VERIFICATION OF INCOME ELIGIBILITY FOR BASIC STAR EXEMPTION.
(1) ON OR AFTER AUGUST FIFTEENTH OF EACH YEAR, BEGINNING IN TWO THOUSAND
TEN, THE COMMISSIONER SHALL PROCURE A REPORT OR REPORTS IDENTIFYING  ALL
PARCELS  RECEIVING  THE  BASIC STAR EXEMPTION AUTHORIZED BY SECTION FOUR
HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW.  THE  COMMISSIONER  IS
AUTHORIZED  TO  DEVELOP PROCEDURES NECESSARY TO ASCERTAIN TO THE BEST OF
HIS OR HER ABILITY WHETHER THE PARCELS SATISFY  THE  INCOME  ELIGIBILITY
REQUIREMENTS  FOR SUCH EXEMPTION. SUCH DETERMINATION SHALL BE BASED UPON
THE AFFILIATED INCOME OF THE PARCEL FOR THE APPLICABLE INCOME TAX  YEAR,
AS  DEFINED  BY  PARAGRAPH  (B-1)  OF  SUBDIVISION THREE OF SECTION FOUR
HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW.

S. 6610--B                         78                         A. 9710--C

  (2) THE COMMISSIONER SHALL FURTHER DEVELOP PROCEDURES  BY  WHICH  EACH
ASSESSOR  SHALL BE NOTIFIED OF HIS OR HER FINDINGS, STATING IN EACH CASE
EITHER THAT THE PARCEL DOES OR DOES  NOT  MEET  THE  INCOME  ELIGIBILITY
STANDARD  PRESCRIBED  BY  LAW,  OR  THAT  THE INCOME-ELIGIBILITY OF SUCH
PARCEL CANNOT BE ASCERTAINED, WHICHEVER IS APPROPRIATE.  THE COMMISSION-
ER  SHALL PROVIDE NO OTHER INFORMATION ABOUT THE INCOME OF ANY PERSON TO
AN ASSESSOR.  SUCH REPORTS SHALL BE FURNISHED TO ASSESSORS PRIOR TO  THE
APPLICABLE TAXABLE STATUS DATE OR AS SOON THEREAFTER AS IS POSSIBLE.
  (3)  UPON  RECEIVING  SUCH  A  REPORT,  THE  ASSESSOR  SHALL GRANT THE
EXEMPTION TO THOSE PARCELS  WHICH  THE  COMMISSIONER  DETERMINED  TO  BE
INCOME-ELIGIBLE  (ASSUMING  THE ASSESSOR FINDS THAT THE REMAINING ELIGI-
BILITY REQUIREMENTS CONTINUE TO BE SATISFIED), SHALL DENY THE  EXEMPTION
TO  THOSE  WHICH  THE COMMISSIONER DETERMINED NOT TO BE INCOME-ELIGIBLE,
AND SHALL SOLICIT INCOME DOCUMENTATION FROM THE OWNERS OF THOSE  PARCELS
AS  TO WHICH THE COMMISSIONER WAS UNABLE TO MAKE A DETERMINATION.  WHERE
THE ASSESSOR DENIES THE EXEMPTION BASED UPON THE COMMISSIONER'S  REPORT,
A  NOTICE  OF  DENIAL  SHALL  BE  MAILED AS PROVIDED BY PARAGRAPH (B) OF
SUBDIVISION SIX OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY
TAX LAW, GIVING THE FINDINGS OF SUCH DEPARTMENT AS  A  REASON  FOR  SUCH
DENIAL.
  (4)  WHERE  A  STAR  EXEMPTION  HAS BEEN IMPROPERLY GRANTED ON A FINAL
ASSESSMENT ROLL TO A PROPERTY WHERE THE AFFILIATED  INCOME  EXCEEDS  THE
LIMITATIONS  ESTABLISHED  BY  PARAGRAPH  (B-1)  OF  SUBDIVISION THREE OF
SECTION FOUR HUNDRED TWENTY-FIVE OF  THE  REAL  PROPERTY  TAX  LAW,  THE
IMPROPERLY  GRANTED  EXEMPTION SHALL BE CORRECTED IN THE MANNER PROVIDED
BY SUBDIVISION TWELVE OF SECTION FOUR HUNDRED TWENTY-FIVE  OF  THE  REAL
PROPERTY TAX LAW.
  S  3.  (a)  Notwithstanding  any provision of law to the contrary, for
purposes of final assessment rolls that are to be used for the  levy  of
taxes  for the 2010-2011 school year, no STAR exemption shall be granted
pursuant to section 425 of the real property tax law to a property which
has an equalized value that is greater than  or  equal  to  two  million
dollars.    This  limitation  shall  not  apply  to  a property which is
partially eligible for the exemption  by  virtue  of  paragraph  (a)  of
subdivision  3  of  section 425 of the real property tax law, unless the
eligible portion of the property has an equalized value that is  greater
than or equal to two million dollars. Nor shall this limitation apply to
a  cooperative  apartment  unit  or  a  mobile home whose value has been
included in the assessment of property owned by  another  party,  unless
the  equalized value of the cooperative apartment unit or mobile home is
greater than or equal to two  million  dollars.  For  purposes  of  this
section,  the  equalized  value  of a property shall equal (i) the total
assessed value of the property appearing on the assessment roll (or  the
eligible  portion  thereof, if applicable), divided by (ii) the residen-
tial assessment ratio established  for  that  roll,  except  that  in  a
special  assessing  unit as defined by section 1801 of the real property
tax law, the equalized value of  the  property  shall  equal  (iii)  the
assessed  valuation  of the property (or the eligible portion thereof if
applicable) determined without regard to  the  restrictions  imposed  by
section  1805 of the real property tax law, divided by (iv) the applica-
ble class ratio as determined pursuant to article 12 of the real proper-
ty tax law. Where a STAR exemption has  been  improperly  granted  on  a
final assessment roll to a property with an equalized value that exceeds
the  limitations  established  by  this  section, the improperly granted
exemption shall be corrected in the manner provided by subdivision 12 of

S. 6610--B                         79                         A. 9710--C

section 425 of the real property tax law, subject to the  provisions  of
paragraph (b) of this section.
  (b)  Where  taxes are payable in installments, if tax bills shall have
been prepared before the assessment roll has been corrected as  required
by  this  section,  the  tax liability of the affected parcel or parcels
shall be recalculated, and any deficiency shall be  added  to  the  next
installment  payment  or  payments  due,  notwithstanding any law to the
contrary.
  (c) No later than October 1, 2010, the assessor shall provide a report
to the commissioner of taxation  and  finance  identifying  the  parcels
which  were rendered ineligible for the STAR exemption by the provisions
of 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, 2010.

                                 PART GG

  Section  1. Paragraph 30 of subdivision (a) of section 1115 of the tax
law, as amended by section 84 of part A of chapter 56  of  the  laws  of
1998, is amended to read as follows:
  (30)  [Clothing]  NOTWITHSTANDING  ANY OTHER PROVISION OF LAW: (I) FOR
PURPOSES OF THE TAXES IMPOSED BY SECTIONS ELEVEN  HUNDRED  FIVE,  ELEVEN
HUNDRED  NINE,  AND ELEVEN HUNDRED TEN OF THIS ARTICLE, AND FOR PURPOSES
ONLY OF TAXES IMPOSED BY A COUNTY, CITY, OR SCHOOL DISTRICT PURSUANT  TO
THE  AUTHORITY  OF  SUBPART B OF PART ONE OF ARTICLE TWENTY-NINE OF THIS
CHAPTER THAT ELECTS THE EXEMPTION DESCRIBED IN  THIS  SUBPARAGRAPH,  FOR
THE PERIOD COMMENCING APRIL FIRST, TWO THOUSAND ELEVEN, AND ENDING MARCH
THIRTY-FIRST,  TWO  THOUSAND TWELVE, CLOTHING and footwear for which the
receipt or consideration given or contracted to be given  is  less  than
[one  hundred  ten] FIFTY-FIVE dollars per article of clothing, per pair
of shoes or other articles of footwear or per item used or  consumed  to
make or repair such clothing and which becomes a physical component part
of such clothing.
  (II)  FOR  PURPOSES  ONLY  OF  THE TAXES IMPOSED BY A COUNTY, CITY, OR
SCHOOL DISTRICT PURSUANT TO THE AUTHORITY OF SUBPART B OF  PART  ONE  OF
ARTICLE  TWENTY-NINE OF THIS CHAPTER THAT ELECTS THE EXEMPTION DESCRIBED
IN THIS SUBPARAGRAPH, CLOTHING AND FOOTWEAR FOR  WHICH  THE  RECEIPT  OR
CONSIDERATION  GIVEN  OR CONTRACTED TO BE GIVEN IS LESS THAN ONE HUNDRED
TEN DOLLARS PER ARTICLE OF CLOTHING, PER PAIR OF SHOES OR OTHER ARTICLES
OF FOOTWEAR OR PER ITEM USED OR CONSUMED TO MAKE OR REPAIR SUCH CLOTHING
AND WHICH BECOMES A PHYSICAL COMPONENT PART OF SUCH CLOTHING.
  S 2. Subdivision (g) of section 1109 of  the  tax  law,  as  added  by
section  118-a of part A of chapter 389 of the laws of 1997, paragraph 1
as amended by section 10 of part A of chapter 63 of the  laws  of  2005,
paragraph  2  as  amended  by section 4 of part KK of chapter 407 of the
laws of 1999, and paragraph 3 as amended by section  88  of  part  A  of
chapter 56 of the laws of 1998, is amended to read as follows:
  (g)  Notwithstanding  any other provision of state or local law, ordi-
nance or resolution to the contrary: (1) In the  event  that  a  county,
city or school district located in the metropolitan commuter transporta-
tion  district  imposes  taxes pursuant to the authority of subpart B of
part I of article twenty-nine of this chapter and elects to provide  the
clothing  and footwear exemption authorized in paragraph one of subdivi-
sion (a) of section twelve hundred ten  of  this  chapter,  [or  a  city
located  in  such  district  in  which the taxes provided for in section
eleven hundred seven of this article are in  effect  elects  to  provide

S. 6610--B                         80                         A. 9710--C

such  clothing  and  footwear  exemption from such taxes pursuant to the
authority of subdivision (k) of such section twelve hundred ten,] or the
taxes provided for in section eleven hundred eight of this  article  are
in  effect in a city located in such district, the exemption provided by
paragraph thirty of subdivision (a) of section eleven hundred fifteen of
this article shall be applicable in such  portion  of  the  metropolitan
commuter  transportation  district  in which such county, city or school
district which elects to provide the  clothing  and  footwear  exemption
authorized in paragraph one of subdivision (a) of section twelve hundred
ten  of  this chapter is located, [or in a city located in such district
in which the taxes provided for in section eleven hundred seven of  this
article  are  in effect which elects to provide such exemption] or where
the taxes provided for in section eleven hundred eight of this [article]
PART are in effect in a city located in such district. The  commissioner
shall  determine  and  certify  to the comptroller the amount of revenue
forgone at the rate of three-eighths of one percent under  this  section
in  such county, city or school district on account of sales of clothing
and footwear in such county, city or school district.
  (2) Commencing with the sales tax quarterly period which commences  on
March  first,  two  thousand,  the commissioner shall make such determi-
nations and certifications on the twelfth day of the month following the
month in which sales tax quarterly returns are due under section  eleven
hundred thirty-six of this article with respect to such quarterly period
for  as  long  as  such clothing and footwear exemptions from such taxes
imposed pursuant to the authority of article twenty-nine OF THIS CHAPTER
or by section [eleven hundred seven or] eleven  hundred  eight  OF  THIS
PART  are  in effect. Neither the commissioner nor the comptroller shall
be held liable for any inaccuracy in  such  determinations  and  certif-
ications.    Such determinations and certifications may be based on such
information as may be available to the commissioner  at  the  time  such
determinations  and  certifications  must be made under this subdivision
and may be estimated on the basis of percentages or other indices calcu-
lated from distributions from prior periods. The commissioner  shall  be
authorized  to require such information as the commissioner deems neces-
sary to comply with the requirements of this  subdivision  from  persons
required to file returns under such section eleven hundred thirty-six OF
THIS ARTICLE.
  (3)  By  the  fifteenth day of the month in which the commissioner has
made the certifications to the comptroller described in paragraph two of
this subdivision, the comptroller shall bill any county, city or  school
district  in  such  metropolitan  commuter transportation district which
provides such clothing and footwear exemption, [and  any  city  in  such
district  in which the taxes imposed by section eleven hundred seven are
in effect which has  elected  to  provide  such  clothing  and  footwear
exemption,]  and any city in such district in which the taxes imposed by
section eleven hundred eight OF THIS PART are in effect, an amount equal
to one-half of the amount certified to the comptroller  by  the  commis-
sioner  in  respect  of  such  county, city or school district; and such
county, city or school district shall pay the amount of such bill to the
comptroller by the twenty-fifth day of such month. The comptroller shall
deposit any such amounts received in the mass  transportation  operating
assistance  fund  established  by  section  eighty-eight-a  of the state
finance law to the credit of the metropolitan mass transportation  oper-
ating assistance account therein.
  (4)  In  the event that a county, city or school district imposing tax
pursuant to the authority of subpart B of part I of article  twenty-nine

S. 6610--B                         81                         A. 9710--C

of this chapter does not pay in full a bill described in paragraph three
of  this  subdivision  by the twenty-fifth day of the month described in
paragraphs two and three of  this  subdivision,  the  comptroller  shall
deduct  any  amount  not  paid  from  the  amount of the next payment or
payments due such county, city or school district pursuant  to  subdivi-
sion  (c) of section twelve hundred sixty-one of this chapter until such
amount not paid has been recovered. The comptroller  shall  deposit  the
amounts  so  deducted and recovered in the mass transportation operating
assistance fund to be credited as provided in paragraph  three  of  this
subdivision.
  (5)  [In  the  event that a city in which the taxes imposed by section
eleven hundred seven of this article are in effect does not pay in  full
a  bill  described in paragraph three of this subdivision by the twenty-
fifth day of the month described in paragraphs two  and  three  of  this
subdivision,  the  comptroller shall deduct any amount not paid from the
amount of the next payment or payments due such city,  with  respect  to
taxes, penalty and interest imposed pursuant to the authority of section
twelve  hundred twelve-a of this chapter, pursuant to subdivision (c) of
section twelve hundred sixty-one of this chapter, until such amount  not
paid  has  been  recovered. The comptroller shall deposit the amounts so
deducted and recovered in the mass transportation  operating  assistance
fund to be credited as provided in paragraph three of this subdivision.
  (6)]  In  the  event that a city in which the taxes imposed by section
eleven hundred eight of this article are in effect does not pay in  full
a  bill  described in paragraph three of this subdivision by the twenty-
fifth day of the month described in paragraphs two  and  three  of  this
subdivision,  the  comptroller shall deduct any amount not paid from the
amount of any other moneys due  such  city  from  the  comptroller,  not
otherwise  pledged, dedicated or encumbered pursuant to other state law,
until such amount not paid has been  recovered.  The  comptroller  shall
deposit the amounts so deducted and recovered in the mass transportation
operating  assistance fund to be credited as provided in paragraph three
of this subdivision.
  [(7)] (6) The commissioner shall certify the amount of any over calcu-
lation or under calculation of any certification required to be made  to
the  comptroller under paragraph three of this subdivision as soon after
its discovery as reasonably possible and subsequent  bills  to  a  city,
county  or school district to which the over calculation or under calcu-
lation relates shall be adjusted accordingly, provided  that  the  comp-
troller  may  adjust  such number of subsequent bills as the comptroller
shall consider reasonable in view of the amount of  the  adjustment  and
all other facts and circumstances.
  [(8)]  (7) On the same date that the comptroller is required to bill a
county, city or school district an amount as provided in paragraph three
of this subdivision, the comptroller shall, after having first made  any
deposits  required  by section ninety-two-r of the state finance law and
only to the extent that there are moneys  remaining  after  having  made
such  required  deposits, withdraw from the state treasury, to the debit
of the general fund, an  amount  equal  to  the  total  of  the  amounts
required  to be billed to counties, cities and school districts pursuant
to such subdivision three and deposit such  total  amount  in  the  mass
transportation  operating  assistance fund to be credited as provided in
such paragraph three. The amount of any over calculation or under calcu-
lation determined in paragraph [seven] SIX  of  this  subdivision  shall
likewise  be  applied to the amounts required to be deposited under this
paragraph, so that the amounts deposited under this paragraph equal  the

S. 6610--B                         82                         A. 9710--C

total  of  the  amounts  required  to  be billed to counties, cities and
school districts under such paragraph three, as  adjusted,  pursuant  to
paragraph [seven] SIX of this subdivision.
  S  2-a.  Subdivision  (g) of section 1109 of the tax law is amended by
adding a new paragraph 8 to read as follows:
  (8) NOTWITHSTANDING THE FOREGOING PROVISIONS OF  THIS  SUBDIVISION  OR
OTHER  PROVISIONS  OF  LAW: (I) FOR THE PERIOD COMMENCING OCTOBER FIRST,
TWO THOUSAND TEN, AND ENDING MARCH THIRTY-FIRST,  TWO  THOUSAND  ELEVEN,
THERE  SHALL  BE  NO  EXEMPTION FOR CLOTHING AND FOOTWEAR FROM THE TAXES
IMPOSED BY THIS SECTION, AND THE COMMISSIONER  SHALL  NOT  DETERMINE  OR
CERTIFY ANY AMOUNT OF REVENUE FOREGONE UNDER THE FOREGOING PROVISIONS OF
THIS SUBDIVISION AND THE COMPTROLLER SHALL NOT BILL ANY COUNTY, CITY, OR
SCHOOL  DISTRICT  LOCATED IN SUCH DISTRICT THAT EXEMPTS FOR CLOTHING AND
FOOTWEAR FROM ITS TAXES IMPOSED PURSUANT TO THE AUTHORITY OF  SUBPART  B
OF PART ONE OF ARTICLE TWENTY-NINE OF THIS CHAPTER.
  (II)  FOR  THE PERIOD COMMENCING APRIL FIRST, TWO THOUSAND ELEVEN, AND
ENDING MARCH THIRTY-FIRST, TWO THOUSAND TWELVE, WHILE THE EXEMPTION  FOR
CLOTHING  AND FOOTWEAR DESCRIBED IN SUBPARAGRAPH (I) OF PARAGRAPH THIRTY
OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED  FIFTEEN  OF  THIS  ARTICLE
APPLIES  TO  THE  TAXES  IMPOSED BY THIS SECTION, THE COMPTROLLER SHALL,
AFTER HAVING FIRST MADE ANY DEPOSITS REQUIRED BY SECTION NINETY-TWO-R OF
THE STATE FINANCE LAW AND ONLY TO  THE  EXTENT  THAT  THERE  ARE  MONEYS
REMAINING  AFTER  HAVING  MADE SUCH REQUIRED DEPOSITS, WITHDRAW FROM THE
STATE TREASURY, TO THE DEBIT OF THE GENERAL FUND, AN AMOUNT EQUAL TO ONE
HUNDRED PERCENT OF THE REVENUES FOREGONE UNDER THIS SECTION  ON  ACCOUNT
OF SUCH EXEMPTION FROM THE TAXES IMPOSED BY THIS SECTION, SUCH AMOUNT OF
REVENUE  FOREGONE DETERMINED AND CALCULATED AS PROVIDED IN THE FOREGOING
PROVISIONS OF THIS SUBDIVISION, AND DEPOSIT SUCH  TOTAL  AMOUNT  IN  THE
MASS  TRANSPORTATION  OPERATING  ASSISTANCE  FUND ESTABLISHED BY SECTION
EIGHTY-EIGHT-A OF THE STATE FINANCE LAW TO THE CREDIT OF  THE  METROPOL-
ITAN MASS TRANSPORTATION OPERATING ASSISTANCE ACCOUNT THEREIN.  HOWEVER,
IF DURING SUCH PERIOD A COUNTY, CITY, OR SCHOOL DISTRICT LOCATED IN SUCH
DISTRICT  PROVIDES  THE EXEMPTION FOR CLOTHING AND FOOTWEAR DESCRIBED IN
EITHER SUBPARAGRAPH (I) OR (II) OF PARAGRAPH THIRTY OF  SUBDIVISION  (A)
OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE FROM ITS TAXES IMPOSED
PURSUANT  TO  THE  AUTHORITY  OF  SUBPART  B  OF  PART  ONE  OF  ARTICLE
TWENTY-NINE OF THIS CHAPTER, THEN THE COMMISSIONER SHALL  DETERMINE  AND
CALCULATE  THE AMOUNT OF REVENUE FOREGONE IN SUCH COUNTY, CITY OR SCHOOL
DISTRICT ON ACCOUNT OF THE EXEMPTIONS OF BOTH THE STATE AND THE  COUNTY,
CITY  OR  SCHOOL  DISTRICT  AND THE STATE AND THE COUNTY, CITY OR SCHOOL
DISTRICT SHALL EACH BE RESPONSIBLE FOR FIFTY  PERCENT  OF  SUCH  REVENUE
FOREGONE  IN  ACCORDANCE  WITH THE FOREGOING PROVISIONS OF THIS SUBDIVI-
SION.
  S 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
amended by chapter 306 of the laws of 2005, subparagraph (i) as  amended
by section 34 of part S-1 of chapter 57 of the laws of 2009 and subpara-
graph  (ii) as amended by chapter 144 of the laws of 2006, is amended to
read as follows:
  (1) [(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 arti-
cle, 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

S. 6610--B                         83                         A. 9710--C

limitations and special provisions as are set forth in this article. The
taxes authorized 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 elev-
en 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 footwear
exemption provided for in paragraph thirty of subdivision (a) of section
eleven  hundred  fifteen  of  this  chapter, unless such city, county or
school district elects otherwise as to  either  such  residential  solar
energy  systems  equipment  exemption  or  such  clothing  and  footwear
exemption.
  [(ii) Notwithstanding any other provision of the law to the  contrary,
any  county, imposing the taxes authorized by this subdivision, having a
population of not less than one hundred  thirty-nine  thousand  and  not
more  than one hundred forty thousand, determined in accordance with the
two thousand decennial federal census, may by local  law,  ordinance  or
resolution  elect  to  exempt from such local sales and compensating use
taxes clothing and footwear, as defined in paragraph fifteen of subdivi-
sion (b) of section eleven hundred one of this chapter,  for  which  the
receipt  or  consideration  given or contracted to be given is less than
one hundred ten dollars per article of clothing, per pair  of  shoes  or
other  articles  of  footwear  or  per  item used or consumed to make or
repair such clothing and which becomes a physical component part of such
clothing. Every such county shall comply with the provisions of subdivi-
sions (d) and (e) of this section, including such provisions  applicable
to providing or repealing the exemption described in paragraph thirty of
subdivision (a) of section eleven hundred fifteen of this chapter.]
  S 4. Subdivision (k) of section 1210 of the tax law is REPEALED.
  S 5. Notwithstanding any provision of state or local law, ordinance or
resolution  to  the  contrary:  (a)  A  county, city, or school district
imposing sales and compensating use taxes pursuant to the  authority  of
subpart  B  of part one of article 29 of this chapter may, regardless of
whether it does or does not provide the clothing and footwear  exemption
as  it  exists  before  this  act  shall  have  become  a law, elect the
exemption for clothing and footwear described  in  subparagraph  (i)  of
paragraph  thirty  of subdivision (a) of section 1115 of the tax law, as
amended by section one of this act, for the period commencing  April  1,
2011,  and  ending  March  31,  2012,  and may also elect to continue to

S. 6610--B                         84                         A. 9710--C

provide the then-to-exist clothing and  footwear  exemption  after  that
period,  by  amending  its  local law, ordinance, or resolution imposing
such taxes in exactly the manner and format prescribed  by  the  commis-
sioner of taxation and finance, without any additions or deletions what-
soever,  and otherwise in accordance with the provisions of subdivisions
(d) and (e) of section 1210 or section 1211 or subdivisions (e) and  (f)
of section 1212 of the tax law.
  (b)  Nothing  in this act shall be construed as limiting the authority
of a county, city, or school district which imposes sales and compensat-
ing use taxes pursuant to the authority of subdivision  (a)  of  section
1210  or  section 1211 or 1212 of the tax law from continuing to provide
the exemption for clothing and footwear costing less  than  110  dollars
per  item,  or  to elect or repeal that exemption, in exactly the manner
and format prescribed by the commissioner of taxation and finance, with-
out any additions or deletions whatsoever, and otherwise  in  accordance
with  the  provisions  of  subdivisions  (d)  and (e) of section 1210 or
section 1211 or subdivisions (e) and (f) of section 1212 of the tax law.
  S 6. This act shall take effect October 1, 2010, and  shall  apply  in
accordance  with applicable transitional provisions in sections 1106 and
1217 of the tax law; provided that section one of this act shall  expire
April 1, 2012, whereupon paragraph 30 of subdivision (a) of section 1115
of the tax law shall be restored to read as it did before this act shall
have  become  a law and such restored provision shall apply on and after
April 1, 2012, in accordance with applicable transitional provisions  in
sections 1106 and 1217 of the tax law, and further that section two-a of
this  act  shall expire April 1, 2012, and be deemed repealed; provided,
further, that section five of this act shall take effect immediately.

                                 PART HH

  Section 1. Subsection (a) of section 615 of the tax law, as amended by
chapter 28 of the laws of 1987, is amended to read as follows:
  (a) General. If federal taxable income of  a  resident  individual  is
determined  by  itemizing  deductions  from  his  federal adjusted gross
income, he may elect to deduct his New York itemized deduction  in  lieu
of his New York standard deduction. The New York itemized deduction of a
resident individual means the total amount of his deductions from feder-
al  adjusted  gross  income,  other than federal deductions for personal
exemptions, as provided in the laws of the United States for the taxable
year, with the  modifications  specified  in  this  section,  except  as
provided for under [subsection] SUBSECTIONS (f) AND (G) of this section.
  S  2.  Subsection  (f)  of  section  615 of the tax law, as amended by
section 1 of part W-1 of chapter 57 of the laws of 2009, is  amended  to
read as follows:
  (f) [The] EXCEPT AS PROVIDED UNDER SUBSECTION (G) OF THIS SECTION, 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

S. 6610--B                         85                         A. 9710--C

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
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  3. Section 615 of the tax law is amended by adding a new subsection
(g) to read as follows:
  (G)(1) WITH RESPECT TO AN INDIVIDUAL WHOSE  NEW  YORK  ADJUSTED  GROSS
INCOME IS OVER ONE MILLION DOLLARS AND NO MORE THAN TEN MILLION DOLLARS,
THE  NEW  YORK  ITEMIZED  DEDUCTION  SHALL  BE  AN AMOUNT EQUAL TO FIFTY
PERCENT OF ANY CHARITABLE CONTRIBUTION DEDUCTION ALLOWED  UNDER  SECTION
ONE  HUNDRED  SEVENTY  OF  THE  INTERNAL  REVENUE CODE FOR TAXABLE YEARS
BEGINNING AFTER TWO THOUSAND EIGHT.
  (2) WITH RESPECT TO AN INDIVIDUAL WHOSE NEW YORK ADJUSTED GROSS INCOME
IS OVER TEN MILLION DOLLARS, THE NEW YORK ITEMIZED DEDUCTION SHALL BE AN
AMOUNT EQUAL TO  TWENTY-FIVE  PERCENT  OF  ANY  CHARITABLE  CONTRIBUTION
DEDUCTION  ALLOWED  UNDER  SECTION  ONE  HUNDRED SEVENTY OF THE INTERNAL
REVENUE CODE FOR TAXABLE YEARS BEGINNING AFTER  TWO  THOUSAND  NINE  AND
ENDING BEFORE TWO THOUSAND THIRTEEN.
  S  4. Clause (ii) of subparagraph (B) of paragraph 3 of subsection (c)
of section 685 of the tax law, as separately amended  by  section  2  of
part W-1 and section 4 of part Z-1 of chapter 57 of the laws of 2009, 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.  Further provided that the tax shown on such return  for  taxable
years  beginning in two thousand eight shall be the tax calculated as if

S. 6610--B                         86                         A. 9710--C

such years began in two thousand nine.  PROVIDED, HOWEVER, THAT THE  TAX
SHOWN  ON  SUCH  RETURN FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINE
SHALL BE CALCULATED AS IF PARAGRAPH TWO OF SUBSECTION (G) OF SECTION SIX
HUNDRED  FIFTEEN  OF THIS ARTICLE WAS IN EFFECT FOR TAXABLE YEARS BEGIN-
NING IN TWO THOUSAND NINE AND ENDING BEFORE TWO THOUSAND THIRTEEN.
  S 5. Subdivision (a) of section 11-1715 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) General. If federal taxable income of a city  resident  individual
is  determined  by  itemizing deductions from his federal adjusted gross
income, such resident individual may elect to deduct his  city  itemized
deduction  in  lieu  of  his city standard deduction.  The city itemized
deduction of a city resident individual means the total  amount  of  his
deductions  from  federal  adjusted  gross  income,  other  than federal
deductions for personal exemptions, as  provided  in  the  laws  of  the
United  States for the taxable year, with the modifications specified in
this section, except as provided for  under  [subdivision]  SUBDIVISIONS
(f) AND (G) of this section.
  S  6. Subdivision (f) of section 11-1715 of the administrative code of
the city of New York, as amended by section 3 of part W-1 of chapter  57
of the laws of 2009, is amended to read as follows:
  (f)  [The]  EXCEPT AS OTHERWISE PROVIDED UNDER SUBDIVISION (G) OF THIS
SECTION, 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
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

S. 6610--B                         87                         A. 9710--C

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 7. Section 11-1715 of the administrative code of  the  city  of  New
York is amended by adding a new subdivision (g) to read as follows:
  (G)  (1)  WITH  RESPECT TO AN INDIVIDUAL WHOSE NEW YORK ADJUSTED GROSS
INCOME IS OVER ONE MILLION DOLLARS BUT NO MORE THAN TEN MILLION DOLLARS,
THE NEW YORK ITEMIZED DEDUCTION  SHALL  BE  AN  AMOUNT  EQUAL  TO  FIFTY
PERCENT  OF  ANY CHARITABLE CONTRIBUTION DEDUCTION ALLOWED UNDER SECTION
ONE HUNDRED SEVENTY OF THE  INTERNAL  REVENUE  CODE  FOR  TAXABLE  YEARS
BEGINNING AFTER TWO THOUSAND EIGHT.
  (2) WITH RESPECT TO AN INDIVIDUAL WHOSE NEW YORK ADJUSTED GROSS INCOME
IS OVER TEN MILLION DOLLARS, THE NEW YORK ITEMIZED DEDUCTION SHALL BE AN
AMOUNT  EQUAL  TO  TWENTY-FIVE  PERCENT  OF  ANY CHARITABLE CONTRIBUTION
DEDUCTION ALLOWED UNDER SECTION ONE  HUNDRED  SEVENTY  OF  THE  INTERNAL
REVENUE CODE FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND NINE.
  S 8. 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 section 4 of part W-1 of chapter 57 of the laws  of  2009,
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.    PROVIDED, HOWEVER, THAT THE TAX SHOWN ON SUCH RETURN
FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINE SHALL BE CALCULATED  AS
IF  PARAGRAPH  TWO OF SUBDIVISION (G) OF SECTION 11-1715 OF THIS CHAPTER
WAS IN EFFECT FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINE.
  S 9. For taxable years beginning on  or  after  January  1,  2010  and
before  January  1,  2011,  no  addition  to tax under subsection (c) of
section 685 of the tax law, or subdivision (c) of section 11-1785 of the
administrative code of the city  of  New  York  shall  be  imposed  with
respect  to any underpayment attributable to the amendments made by this
act of any estimated taxes that are required to be  paid  prior  to  the
effective date of this act, provided that the taxpayer timely made those
payments.
  S 10. This act shall take effect immediately.

                                 PART II

  Section  1.  Subdivision  2  of section 1309 of the abandoned property
law, as amended by chapter 591 of the laws of 1979, is amended  to  read
as follows:
  2.  Any  amount held or owing by any such organization for the payment
of a money order, or for the payment of any instrument drawn  or  issued
to  effect  the  payment therefor, sold by such organization on or after
January first, nineteen hundred thirty shall be deemed abandoned proper-
ty when such amount has remained unpaid to the person  entitled  thereto
for [seven] FIVE years and
  (a)  the  last known address of such entitled person, according to the
records of such organization is located within this state, or
  (b) such organization is incorporated in  this  state  and  such  last
known  address  cannot be obtained from the records of such organization

S. 6610--B                         88                         A. 9710--C

and the records of such organization do not disclose the place  of  sale
of the money order or instrument, or
  (c)  such  organization  is  incorporated  in this state and such last
known address is located in a state not having in effect a statute under
which such amount is payable to such state as  unclaimed,  abandoned  or
escheated property, or
  (d)  such  organization is incorporated in this state or another state
or foreign country and such last known  address  is  not  shown  on  the
records  of  such organization and such records disclosed that the place
of sale of the money order or instrument was in this state.
  Payment to the state comptroller pursuant to  paragraph  (b)  of  this
subdivision  shall  be subject to the right of any other state, the laws
of which provide for escheat or custodial  taking  of  such  amount,  to
recover such amount upon proof that the last known address of the person
entitled  thereto  or place of sale of the money order or instrument was
within that other state's borders.
  Payment to the state comptroller pursuant to  paragraph  (c)  of  this
subdivision  shall  be  subject  to the right of the state of last known
address to recover such amount if and when the law of the state of  such
last  known  address  makes provision for escheat or custodial taking of
such amount.
  S 2. Section 1315 of the abandoned property law, as amended by chapter
166 of the laws of 1991, subdivision 1  as  amended  by  section  6  and
subdivision  1-a  as  added  by section 7 of part T of chapter 62 of the
laws of 2006 and subdivision 4 as added by section 3 of part P of  chap-
ter 62 of the laws of 2003, is amended to read as follows:
  S 1315. Miscellaneous unclaimed property. This section shall encompass
the  following miscellaneous unclaimed property not otherwise covered by
any other section of law. Such property shall be paid  or  delivered  to
the  state comptroller at such times and shall be accompanied by reports
in such form as the state comptroller may prescribe. 1.  [Any  unclaimed
amount  for  services  not  rendered  or  for goods not delivered, which
amount was received after July first, nineteen hundred seventy-four,  or
in  the  case  of  a  public  utility company as that term is defined in
subdivision twenty-three of section two of the public service law, on or
after July first, nineteen hundred eighty, and any] ANY unclaimed amount
representing unredeemed gift certificates sold  after  December  thirty-
first,  nineteen  hundred  eighty-three, including gift certificates for
merchandise only in which case the face value of such certificate  shall
be  deemed the amount deemed abandoned, and owing in this state, or held
by any corporation (other than a public corporation), joint stock compa-
ny, individual, association of two or  more  individuals,  committee  or
business  trust  in  this state, and which has remained unclaimed by the
owner of such amount for five years, shall be deemed abandoned property.
  1-a. Any amount representing outstanding checks issued  on  and  after
July  first,  nineteen  hundred seventy-four in payment for goods or for
services, and owing in this state, or held  by  any  corporation  (other
than a public corporation), joint stock company, individual, association
of  two  or more individuals, committee or business trust in this state,
and which has remained unclaimed by the owner of such amount  for  three
years, shall be deemed abandoned property.
  1-B.  ANY  UNCLAIMED AMOUNT FOR SERVICES NOT RENDERED OR FOR GOODS NOT
DELIVERED, WHICH AMOUNT WAS RECEIVED AFTER JULY FIRST, NINETEEN  HUNDRED
SEVENTY-FOUR, OR IN THE CASE OF A PUBLIC UTILITY COMPANY AS THAT TERM IS
DEFINED IN SUBDIVISION TWENTY-THREE OF SECTION TWO OF THE PUBLIC SERVICE
LAW,  ON OR AFTER JULY FIRST, NINETEEN HUNDRED EIGHTY WHICH HAS REMAINED

S. 6610--B                         89                         A. 9710--C

UNCLAIMED BY THE OWNER OF SUCH AMOUNT FOR THREE YEARS, SHALL  BE  DEEMED
ABANDONED PROPERTY.
  2.  Except  as  otherwise  provided  by  law,  any amount representing
unclaimed money or securities and held in escrow  or  otherwise  by  any
corporation  (other  than  a  public  corporation), joint stock company,
individual, association of two or more individuals, committee  or  busi-
ness  trust,  to ensure the performance of any duty or obligation, shall
be deemed abandoned property when:
  a. such amount is held or owing in this state, and
  b. such amount has remained unclaimed by the person or  persons  enti-
tled thereto for five years, except
  c.  where  the  duty or obligation for which such amount was deposited
has not been performed and such  performance  is  still  required,  such
amounts shall not be deemed abandoned property.
  3.  Any  amount representing an unpaid lottery prize determined by the
division of the lottery pursuant to section sixteen hundred fourteen  of
the  tax  law  to have been abandoned shall be deemed abandoned property
and shall be paid to the state comptroller.
  4. Any amount representing an unpaid check  or  draft  issued  by  the
state  of  New York which shall have remained unpaid after one year from
the date of issuance in accordance with section one hundred two  of  the
state  finance  law shall be deemed abandoned property and shall be paid
to the state comptroller.
  S 3. This act shall take effect immediately.

                                 PART JJ

  Intentionally omitted.

                                 PART KK

  Section 1. Subdivision 6 of section 208 of the tax law, as amended  by
section  2  of  part M of chapter 407 of the laws of 1999, is amended to
read as follows:
  6. The term "investment income" means income, including capital  gains
in  excess  of  capital  losses,  from investment capital, to the extent
included in computing entire net income, less, (a) in the discretion  of
the  commissioner,  any  deductions  allowable  in  computing entire net
income which are directly or indirectly attributable to investment capi-
tal or investment income, [and] (b) such portion of  any  net  operating
loss  deduction allowable in computing entire net income, as the invest-
ment income, before such deduction, bears to entire net  income,  before
such  deduction, AND (C) ANY IF CAPITAL GAIN INCLUDED IN FEDERAL TAXABLE
INCOME THAT HAS TO BE RECHARACTERIZED AS  BUSINESS  INCOME  PURSUANT  TO
PARAGRAPH  (R)  OF  SUBDIVISION NINE OF THIS SECTION; provided, however,
that in no case shall investment income exceed entire net income;
  S 2. Paragraph (f) of subdivision 9 of section 208 of the tax  law  is
amended by adding a new subparagraph 6 to read as follows:
  (6) THE NET OPERATING LOSS DEDUCTION ALLOWED UNDER SECTION ONE HUNDRED
SEVENTY-TWO  OF  THE  INTERNAL  REVENUE  CODE SHALL FOR PURPOSES OF THIS
PARAGRAPH BE DETERMINED TAKING INTO CONSIDERATION  THE  RE-CHARACTERIZA-
TION OF INCOME PURSUANT TO PARAGRAPH (R) OF THIS SUBDIVISION.
  S  3. Subdivision 9 of section 208 of the tax law is amended by adding
a new paragraph (r) to read as follows:
  (R) SPECIAL RULE FOR CORPORATE PARTNERS PERFORMING INVESTMENT  MANAGE-
MENT  SERVICES. IN THE CASE OF A TAXPAYER THAT IS A PARTNER WHO PERFORMS

S. 6610--B                         90                         A. 9710--C

INVESTMENT MANAGEMENT SERVICES (AS DEFINED IN SUBSECTION (H) OF  SECTION
SIX HUNDRED THIRTY-ONE OF THIS CHAPTER) FOR THE PARTNERSHIP, THE TAXPAY-
ER  WILL  NOT  BE TREATED AS A PARTNER FOR PURPOSES OF THIS ARTICLE WITH
RESPECT  TO  THE  AMOUNT  OF THE PARTNER'S DISTRIBUTIVE SHARE OF INCOME,
GAIN, LOSS AND DEDUCTION (INCLUDING ANY GUARANTEED PAYMENTS) WHICH IS IN
EXCESS OF THE AMOUNT THAT SUCH DISTRIBUTIVE SHARE WOULD HAVE BEEN IF THE
PARTNER HAD PERFORMED NO INVESTMENT MANAGEMENT SERVICES.  INSTEAD,  SUCH
EXCESS  AMOUNT  SHALL  BE  TREATED AS AN AMOUNT RECEIVED FROM A TRADE OR
BUSINESS CARRIED ON BY THE TAXPAYER, AND NOTWITHSTANDING  ANY  STATE  OR
FEDERAL  LAW  TO THE CONTRARY, SUCH EXCESS AMOUNT SHALL BE CHARACTERIZED
AS A PAYMENT FOR SERVICES RENDERED. FOR PURPOSES OF THIS PARAGRAPH,  THE
AMOUNT  OF THE DISTRIBUTIVE SHARE THAT WOULD HAVE BEEN DETERMINED IF THE
PARTNER PERFORMED NO SERVICES, SHALL NOT BE LESS THAN ZERO.
  S 4. Paragraph (a) of subdivision 3 of section 210 of the tax  law  is
amended by adding a new subparagraph (6-a) to read as follows:
  (6-A)  RULE  FOR  INVESTMENT  MANAGEMENT  SERVICES TO A PARTNERSHIP OR
OTHER ENTITY. FOR PURPOSES OF SUBPARAGRAPH TWO OF  THIS  PARAGRAPH,  THE
AMOUNT  OF  DISTRIBUTIVE  SHARE  OF  PARTNERSHIP  INCOME,  GAIN, LOSS OR
DEDUCTION (INCLUDING ANY GUARANTEED PAYMENTS) RECEIVED AS A PARTNER BY A
CORPORATION WHICH RENDERS INVESTMENT MANAGEMENT SERVICES TO  A  PARTNER-
SHIP  OR  OTHER  ENTITY,  AS  DEFINED  IN  SUBSECTION (H) OF SECTION SIX
HUNDRED THIRTY-ONE OF THIS CHAPTER, WHICH IS IN  EXCESS  OF  THE  AMOUNT
THAT  SUCH  DISTRIBUTIVE  SHARE  WOULD  HAVE  BEEN  IF  THE  PARTNER HAD
PERFORMED NO INVESTMENT MANAGEMENT SERVICES, SHALL BE TREATED AS A BUSI-
NESS RECEIPT THAT ARISES FROM THE PERFORMANCE OF SERVICES. FOR  PURPOSES
OF  THIS  SUBPARAGRAPH,  THE AMOUNT OF THE DISTRIBUTIVE SHARE THAT WOULD
HAVE BEEN DETERMINED IF THE PARTNER PERFORMED NO SERVICES, SHALL NOT  BE
LESS THAN ZERO.
  S 5. Subsection (b) of section 617 of the tax law, as amended by chap-
ter 606 of the laws of 1984, is amended to read as follows:
  (b)  Character  of  items.  Each item of partnership and S corporation
income, gain, loss, or deduction shall have the  same  character  for  a
partner  or  shareholder  under  this  article as for federal income tax
purposes. Where an item is not  characterized  for  federal  income  tax
purposes,  it shall have the same character for a partner or shareholder
as if realized directly from the source from which realized by the part-
nership or S corporation or incurred in the same manner as  incurred  by
the  partnership  or  S  corporation.    SEE  SUBSECTIONS (F) AND (G) OF
SECTION SIX HUNDRED THIRTY-TWO FOR SPECIAL RULES FOR PARTNERS AND SHARE-
HOLDERS PERFORMING INVESTMENT MANAGEMENT SERVICES.
  S 6. Subsection (d) of section 631 of the tax law, as amended by chap-
ter 28 of the laws of 1987, is amended to read as follows:
  (d) Purchase and sale for own account.-- (1) A nonresident, other than
a dealer holding property primarily for sale to customers in  the  ordi-
nary  course of his trade or business, shall not be deemed to carry on a
business, trade, profession or occupation in this state solely by reason
of the purchase and sale of property or the purchase, sale or writing of
stock option contracts, or both, for his own account.
  (2) THIS SUBSECTION SHALL  NOT  APPLY  TO  A  PARTNER  OR  SHAREHOLDER
PERFORMING  INVESTMENT MANAGEMENT SERVICES AS DESCRIBED UNDER SUBSECTION
(H) OF THIS SECTION.
  S 7. Section 631 of the tax law is amended by adding a new  subsection
(h) to read as follows:
  (H)  INVESTMENT MANAGEMENT SERVICES. (1) FOR PURPOSES OF THIS SECTION,
THE TERM "INVESTMENT MANAGEMENT SERVICES" TO  A  PARTNERSHIP,  S  CORPO-
RATION  OR OTHER ENTITY MEANS PROVIDING A SUBSTANTIAL QUANTITY OF ANY OF

S. 6610--B                         91                         A. 9710--C

THE FOLLOWING SERVICES TO THE PARTNERSHIP, S CORPORATION OR OTHER  ENTI-
TY:
  (I)  ADVISING  THE  PARTNERSHIP,  S  CORPORATION,  OR ENTITY AS TO THE
ADVISABILITY OF INVESTING  IN,  PURCHASING,  OR  SELLING  ANY  SPECIFIED
ASSET, OR
  (II) MANAGING, ACQUIRING, OR DISPOSING OF ANY SPECIFIED ASSET, OR
  (III)  ARRANGING FINANCING WITH RESPECT TO ACQUIRING SPECIFIED ASSETS,
OR
  (IV) ANY ACTIVITY IN SUPPORT OF ANY SERVICE DESCRIBED IN SUBPARAGRAPHS
(I) THROUGH (III) OF THIS PARAGRAPH.
  (2) FOR PURPOSES OF THIS SUBSECTION, THE TERM "SPECIFIED ASSET"  MEANS
SECURITIES  (AS  DEFINED  IN SECTION FOUR HUNDRED SEVENTY-FIVE (C)(2) OF
THE INTERNAL REVENUE CODE WITHOUT REGARD TO THE LAST SENTENCE  THEREOF),
REAL  ESTATE  HELD  FOR RENTAL OR INVESTMENT, INTERESTS IN PARTNERSHIPS,
COMMODITIES (AS DEFINED IN SECTION FOUR HUNDRED SEVENTY-FIVE  (E)(2)  OF
THE  INTERNAL  REVENUE  CODE),  OR  OPTIONS OR DERIVATIVE CONTRACTS WITH
RESPECT TO ANY OF THE FORGOING.
  (3) A PARTNER OR SHAREHOLDER  WILL  NOT  BE  DEEMED  TO  BE  PROVIDING
INVESTMENT  MANAGEMENT SERVICES UNDER THIS SUBSECTION IF AT LEAST EIGHTY
PERCENT OF THE AVERAGE FAIR MARKET VALUE OF THE SPECIFIED ASSETS OF  THE
PARTNERSHIP,  S  CORPORATION  OR  OTHER  ENTITY  DURING THE TAXABLE YEAR
CONSIST OF REAL ESTATE.
  S 8. Section 632  of  the  tax  law  is  amended  by  adding  two  new
subsections (f) and (g) to read as follows:
  (F)   SPECIAL  RULE  FOR  PARTNERS  PERFORMING  INVESTMENT  MANAGEMENT
SERVICES. IN THE CASE OF A PARTNER WHO  PERFORMS  INVESTMENT  MANAGEMENT
SERVICES FOR THE PARTNERSHIP, THE PARTNER WILL NOT BE TREATED AS A PART-
NER FOR PURPOSES OF THIS ARTICLE WITH RESPECT TO THE AMOUNT OF THE PART-
NER'S  DISTRIBUTIVE SHARE OF INCOME, GAIN, LOSS AND DEDUCTION (INCLUDING
ANY GUARANTEED PAYMENTS) WHICH IS IN EXCESS OF THE AMOUNT SUCH DISTRIBU-
TIVE SHARE WOULD HAVE BEEN IF THE PARTNER HAD  PERFORMED  NO  INVESTMENT
MANAGEMENT  SERVICES. INSTEAD, SUCH EXCESS AMOUNT SHALL BE TREATED AS AN
AMOUNT RECEIVED FROM A TRADE, BUSINESS, PROFESSION OR OCCUPATION CARRIED
ON IN THE PARTNER'S OWN CAPACITY FOR PURPOSES OF THIS ARTICLE.  NOTWITH-
STANDING  ANY  STATE  OR FEDERAL LAW TO THE CONTRARY, SUCH EXCESS AMOUNT
SHALL BE CHARACTERIZED AS A PAYMENT FOR SERVICES RENDERED  FOR  PURPOSES
OF  THIS  ARTICLE, AND FOR PURPOSES OF SECTION SIX HUNDRED THIRTY-ONE OF
THIS ARTICLE SHALL BE ALLOCATED IN ACCORDANCE WITH THE RULES  AND  REGU-
LATIONS APPLICABLE TO:
  (1) INDIVIDUALS RENDERING PERSONAL SERVICES IN THE CASE OF AN INDIVID-
UAL PARTNER, OR
  (2) A BUSINESS CARRIED ON IN NEW YORK IN THE CASE OF A PARTNER THAT IS
A PARTNERSHIP, ESTATE OR TRUST, OR
  (3) A CORPORATION UNDER ARTICLES NINE-A AND THIRTY-TWO OF THIS CHAPTER
IN THE CASE OF A PARTNER THAT IS AN S CORPORATION.
FOR  PURPOSES  OF  THIS SUBSECTION, THE AMOUNT OF THE DISTRIBUTIVE SHARE
THAT WOULD HAVE BEEN DETERMINED IF THE PARTNER  PERFORMED  NO  SERVICES,
SHALL NOT BE LESS THAN ZERO.
  (G)  SPECIAL  RULE  FOR  SHAREHOLDERS PERFORMING INVESTMENT MANAGEMENT
SERVICES. IN THE CASE OF A SHAREHOLDER WHO PERFORMS  INVESTMENT  MANAGE-
MENT SERVICES FOR THE S CORPORATION, THE SHAREHOLDER WILL NOT BE TREATED
AS A SHAREHOLDER FOR PURPOSES OF THIS ARTICLE WITH RESPECT TO THE AMOUNT
OF  THE SHAREHOLDER'S PRO RATA SHARE OF INCOME, GAIN, LOSS AND DEDUCTION
WHICH IS IN EXCESS OF THE AMOUNT SUCH PRO RATA SHARE WOULD HAVE BEEN  IF
THE   SHAREHOLDER  HAD  PERFORMED  NO  INVESTMENT  MANAGEMENT  SERVICES.
INSTEAD, SUCH EXCESS AMOUNT SHALL BE TREATED AS AN AMOUNT RECEIVED  FROM

S. 6610--B                         92                         A. 9710--C

A TRADE, BUSINESS, PROFESSION OR OCCUPATION CARRIED ON IN THE SHAREHOLD-
ER'S  OWN  CAPACITY  FOR  PURPOSES  OF THIS ARTICLE. NOTWITHSTANDING ANY
STATE OR FEDERAL LAW TO THE CONTRARY, SUCH EXCESS AMOUNT SHALL BE  CHAR-
ACTERIZED  AS A PAYMENT FOR SERVICES RENDERED FOR PURPOSES OF THIS ARTI-
CLE, AND FOR PURPOSES OF SECTION SIX HUNDRED THIRTY-ONE OF THIS  ARTICLE
SHALL BE ALLOCATED IN ACCORDANCE WITH THE RULES AND REGULATIONS APPLICA-
BLE TO:
  (1) INDIVIDUALS RENDERING PERSONAL SERVICES IN THE CASE OF AN INDIVID-
UAL SHAREHOLDER, OR
  (2)  A  BUSINESS  CARRIED  ON IN NEW YORK IN THE CASE OF A SHAREHOLDER
THAT IS AN ESTATE OR TRUST.
FOR PURPOSES OF THIS SUBSECTION, THE AMOUNT OF THE PRO RATA  SHARE  THAT
WOULD  HAVE  BEEN  DETERMINED  IF THE SHAREHOLDER PERFORMED NO SERVICES,
SHALL NOT BE LESS THAN ZERO.
  S 9. For taxable years beginning on  or  after  January  1,  2010  and
before  January  1, 2011, (i) no addition to tax under subsection (c) of
section 685 or subsection (c) of section 1085 of the tax  law  shall  be
imposed  with respect to any underpayment attributable to the amendments
made by this part of any estimated taxes that are required  to  be  paid
prior  to  the enactment of this part, provided that the taxpayer timely
made those payments; and (ii) the required installment of estimated  tax
described  in  clause  (ii)  of  subparagraph  (B)  of  paragraph  3  of
subsection (c) of section 685 of the tax law, and the exception to addi-
tion for underpayment of estimated tax described in paragraph one or two
of subsection (d) of section 1085 of the tax law,  in  relation  to  the
preceding  year's  return, shall be calculated as if the amendments made
by this part had been in effect for that entire preceding year.
  S 10. This act shall take effect immediately and shall apply to  taxa-
ble years beginning on or after January 1, 2010.

                                 PART LL

  Intentionally omitted.

                                 PART MM

  Section  1.  Section 18 of part FF-1 of chapter 57 of the laws of 2008
relating to the taxation of captive real estate  investment  trusts  and
captive regulated investment companies is amended to read as follows:
  S  18. This act shall take effect immediately and shall apply to taxa-
ble years beginning after 2007 [and before 2011;  provided  however  the
provisions  of  this  act  shall  be deemed repealed January 1, 2011 for
taxable years beginning on or after January 1, 2011].
  S 2. This act shall take effect immediately.

                                 PART NN

  Section 1. Subdivision 9 of section 2 of the  tax  law,  as  added  by
section  1 of part FF-1 of chapter 57 of the laws of 2008, is amended to
read as follows:
  9. "Captive REIT" means a REIT [(a)] that is not regularly  traded  on
an  established  securities market, and ([b)] more than fifty percent of
the voting stock of which is owned or controlled, directly or  indirect-
ly,  by  a single [corporation] ENTITY TREATED AS AN ASSOCIATION TAXABLE
AS A CORPORATION UNDER THE INTERNAL REVENUE CODE that is not exempt from
federal income tax and is not a REIT. Any voting stock in a REIT that is

S. 6610--B                         93                         A. 9710--C

held in a segregated asset account of a life insurance  corporation  (as
described  in  section  817  of  the internal revenue code) shall not be
taken into account for purposes of  determining  whether  a  REIT  is  a
captive  REIT.    NONE  OF THE FOLLOWING ENTITIES SHALL BE CONSIDERED AN
ASSOCIATION TAXABLE AS A CORPORATION FOR PURPOSES OF THIS SUBDIVISION:
  (A) ANY LISTED AUSTRALIAN PROPERTY TRUST (MEANING AN  AUSTRALIAN  UNIT
TRUST  REGISTERED  AS A "MANAGED INVESTMENT SCHEME" UNDER THE AUSTRALIAN
CORPORATIONS ACT IN WHICH THE PRINCIPAL CLASS OF UNITS IS  LISTED  ON  A
RECOGNIZED  STOCK  EXCHANGE  IN  AUSTRALIA AND IS REGULARLY TRADED ON AN
ESTABLISHED SECURITIES MARKET), OR  AN  ENTITY  ORGANIZED  AS  A  TRUST,
PROVIDED  THAT  A  LISTED  AUSTRALIAN  PROPERTY  TRUST OWNS OR CONTROLS,
DIRECTLY OR INDIRECTLY, SEVENTY-FIVE PERCENT OR MORE OF THE VOTING POWER
OR VALUE OF THE BENEFICIAL INTERESTS OR SHARES OF SUCH TRUST; OR
  (B) ANY QUALIFIED FOREIGN ENTITY, MEANING A CORPORATION, TRUST,  ASSO-
CIATION  OR  PARTNERSHIP ORGANIZED OUTSIDE THE LAWS OF THE UNITED STATES
AND WHICH SATISFIES THE FOLLOWING CRITERIA:
  (I) AT LEAST SEVENTY-FIVE PERCENT OF THE ENTITY'S TOTAL ASSET VALUE AT
THE CLOSE OF ITS TAXABLE YEAR IS REPRESENTED BY REAL ESTATE  ASSETS  (AS
DEFINED  AT  SUBPARAGRAPH  (B)  OF  PARAGRAPH  (5)  OF SUBSECTION (C) OF
SECTION EIGHT HUNDRED FIFTY-SIX OF THE INTERNAL  REVENUE  CODE,  THEREBY
INCLUDING  SHARES  OR  CERTIFICATES  OF  BENEFICIAL INTEREST IN ANY REAL
ESTATE INVESTMENT TRUST), CASH AND CASH EQUIVALENTS, AND  UNITED  STATES
GOVERNMENT SECURITIES;
  (II)  THE  ENTITY  IS NOT SUBJECT TO TAX ON AMOUNTS DISTRIBUTED TO ITS
BENEFICIAL OWNERS, OR IS EXEMPT FROM ENTITY-LEVEL TAXATION;
  (III) THE ENTITY DISTRIBUTES AT LEAST EIGHT-FIVE PERCENT OF ITS  TAXA-
BLE INCOME (AS COMPUTED IN THE JURISDICTION IN WHICH IT IS ORGANIZED) TO
THE  HOLDERS  OF ITS SHARES OR CERTIFICATES OF BENEFICIAL INTEREST ON AN
ANNUAL BASIS;
  (IV) NOT MORE THAN TEN PERCENT OF THE VOTING POWER OR  VALUE  IN  SUCH
ENTITY  IS  HELD  DIRECTLY  OR  INDIRECTLY OR CONSTRUCTIVELY BY A SINGLE
ENTITY OR INDIVIDUAL, OR THE SHARES  OR  BENEFICIAL  INTERESTS  OF  SUCH
ENTITY ARE REGULARLY TRADED ON AN ESTABLISHED SECURITIES MARKET; AND
  (V)  THE  ENTITY IS ORGANIZED IN A COUNTRY WHICH HAS A TAX TREATY WITH
THE UNITED STATES.
  S 2. This act shall take effect immediately.

                                 PART OO

  Section 1. Section 66-h of the  public  service  law,  as  amended  by
section 15 of part SS-1 of chapter 57 of the laws of 2008, is amended to
read as follows:
  S 66-h. Certain  electric corporations; payment equivalent to tax. The
commission shall require each electric corporation that purchases  elec-
tricity from an energy business as defined in subdivision (c) of section
three hundred one-i of the tax law (1) that is a co-generation facility,
as  such  term  is  defined  in subdivision two-a of section two of this
chapter, or (2) that is a qualifying facility, as such term  is  defined
by section two hundred one of the Public Utility Regulatory Policies Act
of  1978  (Public  Law  95-617) that is a co-generation facility, or (3)
that has executed or will execute a contract for the sale of electricity
through negotiation with an electric corporation or an auction conducted
by an electric  corporation  pursuant  to  a  competitive  bidding  plan
approved  by  the  commission,  to pay, in addition to payments made for
such purchased electricity under a contract with  such  electric  corpo-
ration,  (I) an amount equal to the tax imposed under article thirteen-A

S. 6610--B                         94                         A. 9710--C

of the tax law with respect to each Mcf of natural gas used to  generate
such  electricity  and [the] (II) WITH RESPECT TO CONTRACTS FOR THE SALE
OF ELECTRICITY AND/OR STEAM EXECUTED PRIOR TO JANUARY FIRST,  TWO  THOU-
SAND, ANY sales and compensating use taxes imposed on [such] NATURAL gas
USED IN THE PRODUCTION OF ELECTRICITY AND/OR STEAM by or pursuant to the
authority  of section eleven hundred seven or subdivision (a) of section
twelve hundred ten of the tax law, unless such  sales  and  compensating
use  taxes imposed are otherwise accounted for in the payments the elec-
tric corporation makes under that contract; provided, however, that  any
such amount paid by such electric corporation shall be recovered through
a  fuel  adjustment  mechanism  authorized  by the commission; provided,
further, that such amount shall not be recovered from charges for  resi-
dential use provided by such electric corporation.
  S 2. This act shall take effect immediately.

                                 PART PP

  Section  1.  Section  24  of  part A of chapter 57 of the laws of 2009
amending the education law and other  laws  relating  to  contracts  for
excellence,   reporting   requirements,   electronic  format  materials,
reimbursement of school districts, calculation of foundation  aid  base,
foundation  amount  and  local contribution, apportionment of school aid
and of current year approved  expenditures  for  debt  service,  deficit
reduction  assessment, building aid, Medicaid reimbursement, grants, and
maximum class size, is amended to read as follows:
  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
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

S. 6610--B                         95                         A. 9710--C

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  AND
2010-2011  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] YEARS.
  S 2. This act shall take effect immediately.

                                 PART QQ

  Section  1.  Paragraph  f  of  subdivision  1 of section 3609-a of the
education law, as added by section 21 of part A of a chapter of the laws
of 2010 amending the education law and other laws relating to  contracts
for  excellence,  as  proposed in legislative bills numbers S.6607-B and
A.9707-C, is amended to read as follows:
  f. Gap elimination adjustment offset for two thousand  ten--two  thou-
sand eleven. Notwithstanding any other provision of law to the contrary,
the  commissioner  shall  increase payments due to each district for the
two thousand ten--two thousand  eleven  school  year  pursuant  to  this
section  by  an  amount  equal  to  the  product  of  [forty-one]  FORTY
hundredths [(0.41)] AND FORTY-FIVE HUNDRED THOUSANDTHS (0.40045)  multi-
plied  by  the net gap elimination adjustment computed for such district
pursuant to paragraph e of this subdivision, and such  amount  shall  be
added  to  moneys apportioned for the purposes of payments made pursuant
to this section.
  S 2. This act shall take effect on the  same  date  and  in  the  same
manner as section 21 of part A of a chapter of the laws of 2010 amending
the  education  law and other laws relating to contracts for excellence,
as proposed in legislative bills numbers S.6607-B  and  A.9707-C,  takes
effect.

                                 PART RR

  Section  1.  Notwithstanding any other law, rule, or regulation to the
contrary, the comptroller is hereby authorized and directed  to  deposit
to  the  credit  of  the  capital  projects fund, reimbursement from the
proceeds of notes or bonds issued by the dormitory authority for a capi-
tal appropriation for $20,400,000 authorized by chapter 100 of the  laws
of  2010  to  the  department  of  education for payment of services and
expenses related to implementing a state longitudinal data system.
  S 2. The public authorities law is amended by  adding  a  new  section
1680-p to read as follows:

S. 6610--B                         96                         A. 9710--C

  S  1680-P. LONGITUDINAL DATA SYSTEM. 1. NOTWITHSTANDING THE PROVISIONS
OF ANY OTHER LAW TO THE CONTRARY, THE AUTHORITY IS HEREBY AUTHORIZED  TO
ISSUE  BONDS  OR  NOTES IN ONE OR MORE SERIES FOR THE PURPOSE OF FUNDING
PROJECT COSTS FOR  THE  IMPLEMENTATION  OF  A  STATE  LONGITUDINAL  DATA
SYSTEM.  THE AGGREGATE PRINCIPAL AMOUNT OF BONDS AUTHORIZED TO BE ISSUED
PURSUANT  TO  THIS  SECTION SHALL NOT EXCEED TWENTY MILLION FOUR HUNDRED
THOUSAND DOLLARS, EXCLUDING BONDS  ISSUED  TO  FUND  ONE  OR  MORE  DEBT
SERVICE RESERVE FUNDS, TO PAY COSTS OF ISSUANCE OF SUCH BONDS, AND BONDS
OR  NOTES ISSUED TO REFUND OR OTHERWISE REPAY SUCH BONDS OR NOTES PREVI-
OUSLY ISSUED. SUCH BONDS AND NOTES OF THE AUTHORITY SHALL NOT BE A  DEBT
OF  THE STATE, AND THE STATE SHALL NOT BE LIABLE THEREON, NOR SHALL THEY
BE PAYABLE OUT OF ANY FUNDS OTHER THAN THOSE APPROPRIATED BY  THE  STATE
TO  THE AUTHORITY FOR PRINCIPAL, INTEREST, AND RELATED EXPENSES PURSUANT
TO A SERVICE CONTRACT AND SUCH BONDS AND NOTES SHALL CONTAIN ON THE FACE
THEREOF A STATEMENT TO SUCH EFFECT. EXCEPT  FOR  PURPOSES  OF  COMPLYING
WITH  THE  INTERNAL  REVENUE  CODE,  ANY  INTEREST INCOME EARNED ON BOND
PROCEEDS SHALL ONLY BE USED TO PAY DEBT SERVICE ON SUCH BONDS.
  2. NOTWITHSTANDING ANY OTHER PROVISION OF  LAW  TO  THE  CONTRARY,  IN
ORDER   TO   ASSIST  THE  AUTHORITY  IN  UNDERTAKING  THE  FINANCING  OF
CONSTRUCTION OF A STATE LONGITUDINAL DATA SYSTEM BUT NOT LIMITED TO  THE
DEVELOPMENT  AND  PURCHASE  OF  COMPUTER HARDWARE, SOFTWARE, AND RELATED
EQUIPMENT, SUCH AMOUNT SHALL INCLUDE EXPENSES MADE BY THE STATE  UNIVER-
SITY  OF NEW YORK, THE CITY UNIVERSITY OF NEW YORK AND THE DEPARTMENT OF
EDUCATION, THE DIRECTOR OF THE BUDGET IS HEREBY AUTHORIZED TO ENTER INTO
ONE OR MORE SERVICE CONTRACTS WITH THE AUTHORITY, NONE  OF  WHICH  SHALL
EXCEED  THIRTY  YEARS IN DURATION, UPON SUCH TERMS AND CONDITIONS AS THE
DIRECTOR OF THE BUDGET AND  THE  AUTHORITY  AGREE,  SO  AS  TO  ANNUALLY
PROVIDE  TO  THE  AUTHORITY,  IN  THE AGGREGATE, A SUM NOT TO EXCEED THE
PRINCIPAL, INTEREST, AND RELATED EXPENSES REQUIRED FOR  SUCH  BONDS  AND
NOTES.  ANY SERVICE CONTRACT ENTERED INTO PURSUANT TO THIS SECTION SHALL
PROVIDE THAT THE OBLIGATION OF THE  STATE  TO  PAY  THE  AMOUNT  THEREIN
PROVIDED  SHALL NOT CONSTITUTE A DEBT OF THE STATE WITHIN THE MEANING OF
ANY CONSTITUTIONAL OR STATUTORY PROVISION AND SHALL BE DEEMED  EXECUTORY
ONLY  TO  THE  EXTENT OF MONIES AVAILABLE AND THAT NO LIABILITY SHALL BE
INCURRED BY THE STATE BEYOND THE  MONIES  AVAILABLE  FOR  SUCH  PURPOSE,
SUBJECT TO ANNUAL APPROPRIATION BY THE LEGISLATURE. ANY SUCH CONTRACT OR
ANY  PAYMENTS  MADE OR TO BE MADE THEREUNDER MAY BE ASSIGNED AND PLEDGED
BY THE AUTHORITY AS SECURITY FOR ITS BONDS AND NOTES, AS  AUTHORIZED  BY
THIS SECTION.
  S 3. This act shall take effect immediately.

                                 PART SS

  Section  1.  Subparagraph  (i)  of  paragraph  a of subdivision 5-a of
section 401 of the vehicle and traffic law, as amended by section  8  of
part  II of a chapter of the laws of 2010 amending the vehicle and traf-
fic law and the public officers law relating to establishing a bus rapid
transit demonstration program to restrict the use of bus lanes by  means
of  bus  lane  photo  devices,  as  proposed in legislative bill numbers
S.6609-B and A.9909-C, is amended to read as follows:
  (i) If at the time of application for a registration or renewal there-
of there is a certification from a  court,  parking  violations  bureau,
traffic  and  parking  violations  agency  or administrative tribunal of
appropriate  jurisdiction  or  administrative  tribunal  of  appropriate
jurisdiction  that the registrant or his or her representative failed to
appear on the return date or any subsequent adjourned date or failed  to

S. 6610--B                         97                         A. 9710--C

comply  with  the  rules  and  regulations of an administrative tribunal
following entry of a final decision in response to a total of  three  or
more summonses or other process in the aggregate, issued within an eigh-
teen  month  period,  charging either that:   (i) such motor vehicle was
parked, stopped or standing, or that such motor vehicle was operated for
hire by the registrant or his or her agent without being licensed  as  a
motor  vehicle for hire by the appropriate local authority, in violation
of any of the provisions of this chapter or of any law, ordinance,  rule
or  regulation  made  by  a  local authority; or (ii) the registrant was
liable in accordance with section eleven hundred eleven-a of this  chap-
ter  or  section eleven hundred eleven-b of this chapter for a violation
of subdivision (d) of section eleven hundred eleven of this chapter;  or
(iii)  the  registrant  was  liable  in  accordance  with section eleven
hundred eleven-c  of  this  chapter  for  a  violation  of  a  bus  lane
restriction  as [as] defined in such section, the commissioner or his or
her agent shall deny the registration or renewal application  until  the
applicant  provides proof from the court, traffic and parking violations
agency or administrative tribunal wherein the charges are  pending  that
an  appearance  or answer has been made or in the case of an administra-
tive tribunal that he or she has complied with the rules and regulations
of said tribunal following entry of a final decision. Where an  applica-
tion is denied pursuant to this section, the commissioner may, in his or
her  discretion, deny a registration or renewal application to any other
person for the same vehicle and  may  deny  a  registration  or  renewal
application  for  any  other motor vehicle registered in the name of the
applicant where the commissioner has determined that  such  registrant's
intent  has been to evade the purposes of this subdivision and where the
commissioner has reasonable grounds to believe that such registration or
renewal will have the effect of defeating the purposes of this  subdivi-
sion.  Such  denial shall only remain in effect as long as the summonses
remain unanswered, or in the case of  an  administrative  tribunal,  the
registrant  fails  to  comply  with  the rules and regulations following
entry of a final decision.
  S 2. Paragraph 7 of subdivision (c) of section 1111-c of  the  vehicle
and  traffic  law,  as added by section 9 of part II of a chapter of the
laws of 2010 amending the vehicle and traffic law and the  public  offi-
cers  law  relating  to  establishing  a bus rapid transit demonstration
program to restrict the use of bus lanes by  means  of  bus  lane  photo
devices,  as proposed in legislative bill numbers S.6609-B and A.9909-C,
is amended to read as follows:
  7. "designated bus lane" shall mean [an  exclusive  bus  only  traffic
lane]  A  LANE  DEDICATED  FOR  THE  EXCLUSIVE  USE  OF  BUSES  WITH THE
EXCEPTIONS ALLOWED UNDER 4-12(M) AND 4-08(A)(3) OF TITLE 34 OF THE RULES
OF THE CITY OF NEW YORK.
  S 3. This act shall take effect on the  same  date  and  in  the  same
manner  as section 14 of part II of a chapter of the laws of 2010 amend-
ing the vehicle and traffic law and the public officers law relating  to
establishing  a  bus rapid transit demonstration program to restrict the
use of bus lanes by means of bus lane  photo  devices,  as  proposed  in
legislative bill numbers S.6609-B and A.9909-C, takes effect.

                                 PART TT

  Section 1. The retirement and social security law is amended by adding
a new section 19-a to read as follows:

S. 6610--B                         98                         A. 9710--C

  S  19-A.   EMPLOYER CONTRIBUTIONS FOR THE TWO THOUSAND TEN - TWO THOU-
SAND ELEVEN FISCAL YEAR AND SUBSEQUENT FISCAL YEARS. A. IN  ADDITION  TO
THE  DEFINITIONS  IN  SECTION  TWO  OF  THIS  ARTICLE, WHEN USED IN THIS
SECTION:
  (1)  "AMORTIZING EMPLOYER" SHALL MEAN AN EMPLOYER THAT ELECTS TO AMOR-
TIZE A PORTION OF THE EMPLOYER'S ANNUAL BILL PURSUANT TO  PARAGRAPH  ONE
OF SUBDIVISION D OF THIS SECTION FOR THE TWO THOUSAND TEN - TWO THOUSAND
ELEVEN FISCAL YEAR, OR ANY SUBSEQUENT FISCAL YEAR, REGARDLESS OF WHETHER
THE EMPLOYER HAS SUBSEQUENTLY PAID IN FULL ALL SUCH AMORTIZED AMOUNTS.
  (2)  "AMOUNT  ELIGIBLE FOR AMORTIZATION" FOR A GIVEN FISCAL YEAR SHALL
MEAN THE AMOUNT BY WHICH AN EMPLOYER'S ACTUARIAL CONTRIBUTION  FOR  SUCH
FISCAL  YEAR  EXCEEDS  THE  EMPLOYER'S  GRADED CONTRIBUTION FOR THE SAME
FISCAL YEAR, LESS ANY AMOUNT FROM THE EMPLOYER CONTRIBUTION RESERVE FUND
APPLIED TO REDUCE THE EMPLOYER'S PAYMENT TO THE  RETIREMENT  SYSTEM  FOR
THE FISCAL YEAR, PROVIDED, HOWEVER, THAT IF THE EMPLOYER'S AVERAGE ACTU-
ARIAL  CONTRIBUTION  RATE  FOR  THE  FISCAL  YEAR  IS LESS THAN NINE AND
ONE-HALF PERCENT, THEN THE AMOUNT ELIGIBLE  FOR  AMORTIZATION  SHALL  BE
ZERO.
  (3)  "EMPLOYER'S ACTUARIAL CONTRIBUTION" FOR A GIVEN FISCAL YEAR SHALL
MEAN AN EMPLOYER'S ANNUAL BILL FOR SUCH FISCAL YEAR EXCLUSIVE  OF  DEFI-
CIENCY  CONTRIBUTIONS  AND PAYMENTS ON ACCOUNT OF GROUP TERM LIFE INSUR-
ANCE, ADJUSTMENTS RELATING TO PRIOR FISCAL YEARS'  OBLIGATIONS,  RETIRE-
MENT INCENTIVES AND PRIOR AMORTIZATIONS.
  (4)  "EMPLOYER'S  ANNUAL  BILL" SHALL MEAN FOR A GIVEN FISCAL YEAR THE
SUM OF THE FOLLOWING AMOUNTS: (I) AN EMPLOYER'S NORMAL CONTRIBUTIONS FOR
THE FISCAL YEAR DETERMINED IN ACCORDANCE WITH PARAGRAPH ONE OF  SUBDIVI-
SION  B  OF  SECTION  TWENTY-THREE OF THIS ARTICLE AND THE COMPREHENSIVE
STRUCTURAL REFORM PROGRAM  IMPLEMENTED  PURSUANT  TO  SUBDIVISION  B  OF
SECTION  TWENTY-THREE-A  OF  THIS  ARTICLE,  INCLUDING THE PROVISIONS OF
SUBDIVISION B OF SECTION TWENTY-THREE-A OF THIS ARTICLE RELATING TO  THE
REQUIRED  MINIMUM  ANNUAL  CONTRIBUTION  OF FOUR AND ONE-HALF PERCENT OF
PENSIONABLE SALARIES; (II) THE EMPLOYER'S DEFICIENCY  CONTRIBUTIONS  AND
ADMINISTRATION  CONTRIBUTIONS  FOR THE FISCAL YEAR DETERMINED IN ACCORD-
ANCE  WITH  PARAGRAPHS  TWO  AND  THREE  OF  SUBDIVISION  B  OF  SECTION
TWENTY-THREE OF THIS ARTICLE; AND (III) ANY PAYMENTS BY THE EMPLOYER DUE
IN  THE FISCAL YEAR ON ACCOUNT OF GROUP TERM LIFE INSURANCE, ADJUSTMENTS
RELATING TO PRIOR FISCAL YEARS' OBLIGATIONS, RETIREMENT  INCENTIVES  AND
PRIOR AMORTIZATIONS.
  (5)  "EMPLOYER'S  AVERAGE  ACTUARIAL  CONTRIBUTION  RATE"  FOR A GIVEN
FISCAL YEAR SHALL MEAN AN EMPLOYER'S  ACTUARIAL  CONTRIBUTION  FOR  SUCH
FISCAL  YEAR  DIVIDED  BY  THE EMPLOYER'S PROJECTED PAYROLL FOR THE SAME
FISCAL YEAR.
  (6) "EMPLOYER CONTRIBUTION RESERVE FUND"  OR  "FUND"  SHALL  MEAN  THE
EMPLOYER CONTRIBUTION RESERVE FUND ESTABLISHED PURSUANT TO SUBDIVISION E
OF THIS SECTION.
  (7)  "EMPLOYER'S  GRADED  CONTRIBUTION"  FOR A GIVEN FISCAL YEAR SHALL
MEAN THE AMOUNT DETERMINED BY APPLYING THE  SYSTEM  GRADED  CONTRIBUTION
RATE  FOR  SUCH  FISCAL  YEAR TO AN EMPLOYER'S PROJECTED PAYROLL FOR THE
SAME FISCAL YEAR.
  (8) "EMPLOYER'S GRADED PAYMENT" FOR A GIVEN FISCAL YEAR SHALL MEAN THE
AMOUNT BY WHICH AN EMPLOYER'S GRADED CONTRIBUTION FOR SUCH  FISCAL  YEAR
EXCEEDS THE EMPLOYER'S ACTUARIAL CONTRIBUTION FOR THE SAME FISCAL YEAR.
  (9)  "PRIOR  AMORTIZATION"  SHALL  MEAN WITH RESPECT TO A GIVEN FISCAL
YEAR ANY PAYMENT DUE IN SUCH FISCAL YEAR ON  ACCOUNT  OF  AN  OBLIGATION
FROM  A  PRIOR  FISCAL  YEAR THAT AN EMPLOYER IS PERMITTED TO PAY TO THE
RETIREMENT SYSTEM ON AN AMORTIZED BASIS.

S. 6610--B                         99                         A. 9710--C

  (10) "SYSTEM AVERAGE ACTUARIAL CONTRIBUTION RATE" FOR A  GIVEN  FISCAL
YEAR  SHALL  MEAN  THE SUM OF ALL EMPLOYERS' ACTUARIAL CONTRIBUTIONS FOR
SUCH FISCAL YEAR DIVIDED BY THE SUM OF ALL EMPLOYERS' PROJECTED  PAYROLL
FOR THE SAME FISCAL YEAR.
  (11)  "SYSTEM  GRADED CONTRIBUTION RATE" FOR A GIVEN FISCAL YEAR SHALL
MEAN THE GRADED CONTRIBUTION RATE FOR THE RETIREMENT SYSTEM AS  A  WHOLE
DETERMINED  FOR  SUCH  FISCAL  YEAR  PURSUANT  TO  SUBDIVISION C OF THIS
SECTION.
  B. NOTWITHSTANDING THE PROVISIONS OF THIS CHAPTER OR ANY OTHER LAW  TO
THE  CONTRARY,  THE  COMPTROLLER,  IN  HIS OR HER DISCRETION, SHALL HAVE
AUTHORITY TO IMPLEMENT THIS SECTION. IF THE COMPTROLLER ELECTS TO IMPLE-
MENT THIS SECTION, THE PROVISIONS OF THIS SECTION  SHALL  APPLY  TO  THE
PAYMENT  OF  EMPLOYER  CONTRIBUTIONS  FOR  THE FISCAL YEAR COMMENCING ON
APRIL FIRST, TWO THOUSAND TEN, AND FOR SUBSEQUENT FISCAL YEARS.
  C. FOR EACH FISCAL YEAR TO WHICH THE PROVISIONS OF THIS SECTION APPLY,
THE COMPTROLLER SHALL DETERMINE  A  GRADED  CONTRIBUTION  RATE  FOR  THE
RETIREMENT SYSTEM AS A WHOLE IN THE MANNER PROVIDED IN THIS SUBDIVISION.
  (1)  FOR  THE  TWO  THOUSAND TEN - TWO THOUSAND ELEVEN FISCAL YEAR THE
SYSTEM GRADED CONTRIBUTION RATE SHALL BE NINE AND ONE-HALF PERCENT.
  (2) FOR THE TWO THOUSAND ELEVEN - TWO THOUSAND TWELVE FISCAL YEAR, AND
SUBSEQUENT FISCAL YEARS,  SYSTEM  GRADED  CONTRIBUTION  RATES  SHALL  BE
DETERMINED AS FOLLOWS:
  (I)  IF  THE  SYSTEM  AVERAGE  ACTUARIAL CONTRIBUTION RATE FOR A GIVEN
FISCAL YEAR IS AT LEAST NINE AND ONE-HALF PERCENT AND EXCEEDS THE SYSTEM
GRADED CONTRIBUTION RATE FOR THE IMMEDIATELY PRECEDING  FISCAL  YEAR  BY
MORE THAN ONE PERCENTAGE POINT, THEN THE SYSTEM GRADED CONTRIBUTION RATE
FOR  THE  GIVEN  FISCAL  YEAR SHALL EQUAL THE SYSTEM GRADED CONTRIBUTION
RATE FOR THE IMMEDIATELY  PRECEDING  FISCAL  YEAR  PLUS  ONE  PERCENTAGE
POINT,  PROVIDED,  HOWEVER,  THAT  IN  NO  EVENT SHALL THE SYSTEM GRADED
CONTRIBUTION RATE BE LESS THAN NINE AND ONE-HALF PERCENT;
  (II) IF THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION  RATE  FOR  A  GIVEN
FISCAL  YEAR IS AT LEAST NINE AND ONE-HALF PERCENT AND EITHER EQUALS THE
SYSTEM GRADED CONTRIBUTION RATE FOR  THE  IMMEDIATELY  PRECEDING  FISCAL
YEAR  OR EXCEEDS THE SYSTEM GRADED CONTRIBUTION RATE FOR THE IMMEDIATELY
PRECEDING FISCAL YEAR BY ONE PERCENTAGE POINT OR LESS, THEN  THE  SYSTEM
GRADED  CONTRIBUTION  RATE  FOR  THE  GIVEN  FISCAL YEAR SHALL EQUAL THE
SYSTEM  AVERAGE  ACTUARIAL  CONTRIBUTION  RATE  FOR  SUCH  FISCAL  YEAR,
PROVIDED, HOWEVER, THAT IN NO EVENT SHALL THE SYSTEM GRADED CONTRIBUTION
RATE BE LESS THAN NINE AND ONE-HALF PERCENT;
  (III)  IF  THE  SYSTEM AVERAGE ACTUARIAL CONTRIBUTION RATE FOR A GIVEN
FISCAL YEAR IS LESS THAN NINE AND ONE-HALF PERCENT AND GREATER THAN  THE
SYSTEM  GRADED  CONTRIBUTION  RATE  FOR THE IMMEDIATELY PRECEDING FISCAL
YEAR, THEN THE SYSTEM GRADED CONTRIBUTION RATE FOR THE GIVEN FISCAL YEAR
SHALL EQUAL THE SYSTEM ACTUARIAL CONTRIBUTION RATE FOR SUCH FISCAL YEAR;
  (IV) IF THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION  RATE  FOR  A  GIVEN
FISCAL  YEAR IS SMALLER THAN THE SYSTEM GRADED CONTRIBUTION RATE FOR THE
IMMEDIATELY PRECEDING FISCAL YEAR BY MORE  THAN  ONE  PERCENTAGE  POINT,
THEN THE SYSTEM GRADED CONTRIBUTION RATE FOR THE GIVEN FISCAL YEAR SHALL
EQUAL  THE SYSTEM GRADED CONTRIBUTION RATE FOR THE IMMEDIATELY PRECEDING
FISCAL YEAR MINUS ONE PERCENTAGE POINT; AND
  (V) IF THE SYSTEM AVERAGE ACTUARIAL  CONTRIBUTION  RATE  FOR  A  GIVEN
FISCAL  YEAR  EITHER  EQUALS THE SYSTEM GRADED CONTRIBUTION RATE FOR THE
IMMEDIATELY PRECEDING FISCAL YEAR OR IS SMALLER THAN THE  SYSTEM  GRADED
CONTRIBUTION  RATE  FOR  THE  IMMEDIATELY  PRECEDING  FISCAL YEAR BY ONE
PERCENTAGE POINT OR LESS, THEN THE SYSTEM GRADED CONTRIBUTION  RATE  FOR

S. 6610--B                         100                        A. 9710--C

THE GIVEN FISCAL YEAR SHALL EQUAL THE SYSTEM ACTUARIAL CONTRIBUTION RATE
FOR SUCH FISCAL YEAR.
  D. (1) FOR ANY GIVEN FISCAL YEAR FOR WHICH AN EMPLOYER'S AVERAGE ACTU-
ARIAL CONTRIBUTION RATE EXCEEDS THE SYSTEM GRADED CONTRIBUTION RATE, THE
EMPLOYER  SHALL  PAY  TO  THE  RETIREMENT  SYSTEM AN AMOUNT EQUAL TO THE
EMPLOYER'S ANNUAL BILL FOR SUCH YEAR OR, IN LIEU OF  PAYING  THE  ENTIRE
ANNUAL  BILL,  THE  EMPLOYER  MAY  PAY AN AMOUNT EQUAL TO THE EMPLOYER'S
ANNUAL BILL LESS ALL OR A PORTION OF THE EMPLOYER'S AMOUNT ELIGIBLE  FOR
AMORTIZATION  FOR  THE FISCAL YEAR. IF IN ACCORDANCE WITH THIS PARAGRAPH
THE EMPLOYER'S PAYMENT TO THE RETIREMENT SYSTEM IS LESS THAN THE  ENTIRE
AMOUNT  OF  THE  EMPLOYER'S ANNUAL BILL, THEN THE DIFFERENCE BETWEEN THE
EMPLOYER'S ANNUAL BILL, AND THE AMOUNT ACTUALLY PAID BY THE EMPLOYER  TO
THE RETIREMENT SYSTEM EXCLUSIVE OF ANY AMOUNT FROM THE EMPLOYER CONTRIB-
UTION  RESERVE  FUND  APPLIED TO REDUCE THE EMPLOYER'S PAYMENT, SHALL BE
THE AMOUNT AMORTIZED FOR THE FISCAL YEAR. THE AMOUNT AMORTIZED  FOR  THE
FISCAL  YEAR  SHALL  BE  PAID  TO  THE RETIREMENT SYSTEM IN EQUAL ANNUAL
INSTALLMENTS OVER A TEN-YEAR PERIOD, WITH INTEREST ON THE UNPAID BALANCE
AT A RATE DETERMINED BY THE COMPTROLLER WHICH APPROXIMATES A MARKET RATE
OF RETURN ON TAXABLE FIXED RATE SECURITIES WITH SIMILAR TERMS ISSUED  BY
COMPARABLE ISSUERS, AND WITH THE FIRST INSTALLMENT DUE IN THE IMMEDIATE-
LY SUCCEEDING FISCAL YEAR.
  (2) FOR ANY GIVEN FISCAL YEAR FOR WHICH THE SYSTEM GRADED CONTRIBUTION
RATE  EQUALS  OR  EXCEEDS  AN  AMORTIZING  EMPLOYER'S  AVERAGE ACTUARIAL
CONTRIBUTION RATE, THE AMORTIZING EMPLOYER SHALL PAY TO  THE  RETIREMENT
SYSTEM  AN AMOUNT EQUAL TO THE EMPLOYER'S ANNUAL BILL FOR SUCH YEAR PLUS
THE EMPLOYER'S GRADED PAYMENT FOR THE FISCAL YEAR.
  (I) IF THE AMORTIZING EMPLOYER'S ANNUAL BILL FOR THE FISCAL YEAR  DOES
NOT  INCLUDE  AN  AMOUNT  ATTRIBUTABLE TO A PRIOR AMORTIZATION, THEN THE
EMPLOYER'S GRADED PAYMENT SHALL BE PAID INTO THE  EMPLOYER  CONTRIBUTION
RESERVE  FUND PROVIDED FOR IN SUBDIVISION E OF THIS SECTION AND CREDITED
TO AN ACCOUNT WITHIN SUCH FUND ESTABLISHED FOR THE EMPLOYER.
  (II) IF THE AMORTIZING EMPLOYER'S ANNUAL  BILL  FOR  THE  FISCAL  YEAR
INCLUDES  AN AMOUNT ATTRIBUTABLE TO A PRIOR AMORTIZATION, THE EMPLOYER'S
GRADED PAYMENT SHALL BE USED  FIRST  TO  ELIMINATE  THE  AMOUNT  OF  THE
EMPLOYER'S  UNPAID  PRIOR  AMORTIZATION  BALANCES IN CHRONOLOGICAL ORDER
STARTING WITH THE OLDEST PRIOR AMORTIZATION BALANCE. WHEN IN ANY  FISCAL
YEAR  THE  EMPLOYER'S GRADED PAYMENT ELIMINATES ALL BALANCES OWED ON THE
EMPLOYER'S PRIOR AMORTIZATIONS, ANY REMAINING PORTION OF THE  EMPLOYER'S
GRADED  PAYMENT  FOR SUCH FISCAL YEAR, AND THE EMPLOYER'S GRADED PAYMENT
IN ANY SUBSEQUENT FISCAL YEAR IN WHICH THE AMORTIZING  EMPLOYER  HAS  NO
UNPAID PRIOR AMORTIZATIONS, SHALL BE PAID INTO THE EMPLOYER CONTRIBUTION
RESERVE  FUND PROVIDED FOR IN SUBDIVISION E OF THIS SECTION AND CREDITED
TO AN ACCOUNT WITHIN SUCH FUND ESTABLISHED FOR THE EMPLOYER.
  (3) NOTHING IN THIS SUBDIVISION SHALL BE CONSTRUED AS  PROHIBITING  AN
EMPLOYER FROM PRE-PAYING ANY PRIOR AMORTIZATION.
  E.  (1)  NOTWITHSTANDING ANY LAW TO THE CONTRARY, THERE SHALL BE MAIN-
TAINED SEPARATE AND APART FROM THE OTHER FUNDS OF THE RETIREMENT  SYSTEM
AN  EMPLOYER CONTRIBUTION RESERVE FUND, THE ASSETS OF WHICH SHALL NOT BE
USED OR INVESTED IN A MANNER CONTRARY TO THE PROVISIONS OF THIS SUBDIVI-
SION. THE FUND SHALL CONSIST OF ALL EMPLOYER CONTRIBUTIONS  REQUIRED  TO
BE  DEPOSITED  INTO  THE FUND PURSUANT TO SUBDIVISION D OF THIS SECTION.
WITHIN SUCH FUND THERE SHALL BE A SEPARATE  ACCOUNT  FOR  EACH  EMPLOYER
MAKING SUCH CONTRIBUTIONS AND PAYMENTS.
  (2)  FOR  ANY  GIVEN  FISCAL  YEAR  FOR WHICH (I) THE SYSTEM ACTUARIAL
CONTRIBUTION RATE EXCEEDS NINE AND ONE-HALF PERCENT OF PAYROLL, AND (II)
AN EMPLOYER'S AVERAGE ACTUARIAL CONTRIBUTION  RATE  EXCEEDS  THE  SYSTEM

S. 6610--B                         101                        A. 9710--C

GRADED  CONTRIBUTION  RATE, THE BALANCE IN THE EMPLOYER'S ACCOUNT WITHIN
SUCH FUND SHALL BE APPLIED TO  REDUCE  THE  EMPLOYER'S  PAYMENT  TO  THE
RETIREMENT  SYSTEM  FOR  SUCH FISCAL YEAR IN AN AMOUNT NOT TO EXCEED THE
DIFFERENCE BETWEEN THE EMPLOYER'S ACTUARIAL CONTRIBUTION AND THE EMPLOY-
ER'S GRADED CONTRIBUTION FOR THE FISCAL YEAR.
  (3)  NOTWITHSTANDING  THE PROVISIONS OF PARAGRAPH TWO OF THIS SUBDIVI-
SION, IF AT THE CLOSE OF ANY GIVEN FISCAL YEAR THE BALANCE OF AN EMPLOY-
ER'S ACCOUNT WITHIN THE FUND EXCEEDS ONE HUNDRED PERCENT OF THE  EMPLOY-
ER'S PAYROLL FOR SUCH FISCAL YEAR, THE EXCESS SHALL BE APPLIED TO REDUCE
THE  EMPLOYER'S PAYMENT TO THE RETIREMENT SYSTEM FOR THE NEXT SUCCEEDING
FISCAL YEAR.
  (4) THE ASSETS OF THE FUND SHALL BE INVESTED  IN  ONLY  THE  FOLLOWING
TYPES OF INVESTMENTS:
  (I)  OBLIGATIONS  OF  THE  UNITED  STATES OF AMERICA OR IN OBLIGATIONS
GUARANTEED BY AGENCIES OF THE UNITED STATES OF AMERICA WHERE THE PAYMENT
OF PRINCIPAL AND INTEREST ARE GUARANTEED BY THE UNITED STATES OF AMERICA
OR IN OBLIGATIONS OF THE STATE OF NEW YORK;
  (II) GENERAL OBLIGATION BONDS AND NOTES OF ANY STATE OTHER  THAN  THIS
STATE,  PROVIDED THAT SUCH BONDS AND NOTES RECEIVE THE HIGHEST RATING OF
AT LEAST ONE INDEPENDENT RATING AGENCY;
  (III) OBLIGATIONS OF, OR INSTRUMENTS ISSUED BY OR FULLY GUARANTEED  AS
TO  PRINCIPAL  AND  INTEREST  BY,  ANY  AGENCY OR INSTRUMENTALITY OF THE
UNITED STATES ACTING PURSUANT TO A GRANT OF AUTHORITY FROM THE  CONGRESS
OF  THE  UNITED  STATES, INCLUDING, BUT NOT LIMITED TO, ANY FEDERAL HOME
LOAN BANK OR BANKS, THE TENNESSEE VALLEY AUTHORITY, THE FEDERAL NATIONAL
MORTGAGE ASSOCIATION, THE FEDERAL HOME LOAN MORTGAGE CORPORATION AND THE
UNITED STATES POSTAL SERVICE;
  (IV) CERTIFICATE OF DEPOSITS THAT ARE FULLY SECURED BY THE  ISSUER  BY
DEPOSITING  WITH  THE  COMPTROLLER DIRECT OR INDIRECT OBLIGATIONS OF THE
UNITED STATES OR ITS AGENCIES OR A LETTER OF CREDIT ISSUED BY THE FEDER-
AL HOME LOAN BANK; AND
  (V) OBLIGATIONS OF ANY CORPORATION ORGANIZED UNDER  THE  LAWS  OF  ANY
STATE  IN  THE  UNITED  STATES  MATURING WITHIN TWO HUNDRED SEVENTY DAYS
PROVIDED THAT SUCH OBLIGATIONS RECEIVE THE HIGHEST RATING OF  TWO  INDE-
PENDENT RATING SERVICES DESIGNATED BY THE COMPTROLLER.
  (5) AT THE CLOSE OF EACH FISCAL YEAR, THE AMOUNT OF INTEREST AND EARN-
INGS  ATTRIBUTABLE  TO  EACH EMPLOYER'S ACCOUNT SHALL BE COMPUTED BY THE
ACTUARY AND CERTIFIED TO THE COMPTROLLER,  WHO  SHALL  THEREUPON  CREDIT
EACH EMPLOYER'S ACCOUNT IN ACCORDANCE THEREWITH.
  (6) THE ASSETS OF THE FUND SHALL BE EXCLUDED FROM THE ANNUAL VALUATION
OF  THE  ASSETS  AND  LIABILITIES  OF THE FUNDS OF THE RETIREMENT SYSTEM
REQUIRED BY SECTION ELEVEN OF THIS TITLE. THE ASSETS OF THE  FUND  SHALL
NOT BE USED TO FINANCE INCREASES IN PENSION BENEFITS.
  S 2. The opening paragraph and paragraph 1 of subdivision b of section
23  of the retirement and social security law, as amended by chapter 210
of the laws of 1990 and clause (ii) of subparagraph (a) of  paragraph  1
as  amended  by  chapter 947 of the laws of 1990, are amended to read as
follows:
  Each employer shall make  [two]  THREE  contributions  annually.  They
shall  be  known  as the normal contribution [as defined in subparagraph
(a) of paragraph one of this subdivision and], the  deficiency  contrib-
ution  [as defined in paragraph two of this subdivision], AND THE ADMIN-
ISTRATION CONTRIBUTION.   The rates thereof shall  be  computed  by  the
actuary.
  1.  [(a)]  Normal contribution. The rate of such contribution shall be
applied to the members' annual compensation as of the end of the  fiscal

S. 6610--B                         102                        A. 9710--C

year. Such rate shall be a uniform and constant rate per centum of annu-
al  compensation [when determined by dividing the valuation costs by the
payroll amount used in the valuation. Notwithstanding any  provision  of
law to the contrary, the valuation costs consist of:
  (i) the normal cost, which shall be the actuarial present value of the
employer  provided  benefits  accrued  during  the  year, based upon the
projected future salary on which benefits are expected to  be  paid,  by
prorating  each employee's projected benefit over his or her total years
of service;
  (ii) the supplemental cost, which  shall  be  the  cost  of  providing
supplemental  retirement allowance payments pursuant to subdivision e of
section seventy-eight of this article;
  (iii) the administrative cost, which shall  be  the  expenses  of  the
retirement  system  pursuant to paragraph three of subdivision b of this
section;
  (iv) the prior service cost, which shall be equal to the  interest  on
the  unfunded  actuarial  accrued liability or surplus plus a portion of
the unfunded liability or surplus, said  portion  to  be  equal  to  the
unfunded  liability  or  surplus  divided by the average future years of
service of active employees; and
  (v) the annual amortization cost, which shall be equal to  the  amount
of the annual amortization payment required to be paid into the system's
pension  accumulation  fund  under sections sixteen-a and seventeen-a of
this article.
  Provided, however, in no event shall the  amount  of  contribution  be
less than zero.
  (b)  The comptroller is authorized to make appropriate adjustments for
those participating employers that have paid an amount in excess of  the
minimum  annual  amortization payment required by section seventeen-a of
this article. The excess payment shall accumulate with  interest  earned
at  the  rate  used  in  the  annual  actuarial valuation and be applied
against future pension contribution  requirements  to  insure  equitable
treatment of all participating employers.
  (c)  In  any  year in which no contribution is required to the pension
accumulation fund, any adjustment reducing a prior  year's  contribution
resulting from the enactment of section sixteen-b of this chapter, shall
be credited with interest earned at the rate used in the annual actuari-
al  valuation  and  applied against future pension contributions].  WHEN
APPLIED TO THE COMPENSATION  OF  THE  AVERAGE  NEW  ENTRANT  DURING  THE
REMAINING  PERIOD  OF HIS OR HER MEMBERSHIP, SUCH RATE SHALL BE COMPUTED
TO BE SUFFICIENT TO PROVIDE  ALL  THE  BENEFITS,  OTHER  THAN  THOSE  ON
ACCOUNT  OF PRIOR SERVICE, GRANTED BY THIS ARTICLE AND WHICH ARE PAYABLE
FROM FUNDS CONTRIBUTED TO THE PENSION ACCUMULATION FUND.
  Such rate shall be computed each year by means of an  actuarial  valu-
ation  as  prescribed in section eleven of this [chapter] ARTICLE AND AS
AUTHORIZED BY SECTION TWENTY-THREE-A OF THIS TITLE.
  S 3. The retirement and social security law is amended by adding a new
section 319-a to read as follows:
  S 319-A. EMPLOYER CONTRIBUTIONS FOR THE TWO THOUSAND TEN -  TWO  THOU-
SAND  ELEVEN  FISCAL YEAR AND SUBSEQUENT FISCAL YEARS. A. IN ADDITION TO
THE DEFINITIONS IN SECTION THREE HUNDRED TWO OF THIS ARTICLE, WHEN  USED
IN THIS SECTION:
  (1)  "AMORTIZING EMPLOYER" SHALL MEAN AN EMPLOYER THAT ELECTS TO AMOR-
TIZE A PORTION OF THE EMPLOYER'S ANNUAL BILL PURSUANT TO  PARAGRAPH  ONE
OF SUBDIVISION D OF THIS SECTION FOR THE TWO THOUSAND TEN - TWO THOUSAND

S. 6610--B                         103                        A. 9710--C

ELEVEN FISCAL YEAR, OR ANY SUBSEQUENT FISCAL YEAR, REGARDLESS OF WHETHER
THE EMPLOYER HAS SUBSEQUENTLY PAID IN FULL ALL SUCH AMORTIZED AMOUNTS.
  (2)  "AMOUNT  ELIGIBLE FOR AMORTIZATION" FOR A GIVEN FISCAL YEAR SHALL
MEAN THE AMOUNT BY WHICH AN EMPLOYER'S ACTUARIAL CONTRIBUTION  FOR  SUCH
FISCAL  YEAR  EXCEEDS  THE  EMPLOYER'S  GRADED CONTRIBUTION FOR THE SAME
FISCAL YEAR, LESS ANY AMOUNT FROM THE EMPLOYER CONTRIBUTION RESERVE FUND
APPLIED TO REDUCE THE EMPLOYER'S PAYMENT TO THE  RETIREMENT  SYSTEM  FOR
THE FISCAL YEAR, PROVIDED, HOWEVER, THAT IF THE EMPLOYER'S AVERAGE ACTU-
ARIAL  CONTRIBUTION  RATE FOR THE FISCAL YEAR IS LESS THAN SEVENTEEN AND
ONE-HALF PERCENT, THEN THE AMOUNT ELIGIBLE  FOR  AMORTIZATION  SHALL  BE
ZERO.
  (3)  "EMPLOYER'S ACTUARIAL CONTRIBUTION" FOR A GIVEN FISCAL YEAR SHALL
MEAN AN EMPLOYER'S ANNUAL BILL FOR SUCH FISCAL  YEAR  EXCLUSIVE  OF  THE
DEFICIENCY  CONTRIBUTIONS  AND  PAYMENTS  ON  ACCOUNT OF GROUP TERM LIFE
INSURANCE, ADJUSTMENTS RELATING  TO  PRIOR  FISCAL  YEARS'  OBLIGATIONS,
RETIREMENT INCENTIVES AND PRIOR AMORTIZATIONS.
  (4)  "EMPLOYER'S  ANNUAL  BILL" SHALL MEAN FOR A GIVEN FISCAL YEAR THE
SUM OF THE FOLLOWING AMOUNTS: (I) AN EMPLOYER'S NORMAL CONTRIBUTIONS FOR
THE FISCAL YEAR DETERMINED IN ACCORDANCE WITH PARAGRAPH ONE OF  SUBDIVI-
SION  B  OF  SECTION  THREE HUNDRED TWENTY-THREE OF THIS ARTICLE AND THE
COMPREHENSIVE STRUCTURAL REFORM PROGRAM IMPLEMENTED PURSUANT TO SUBDIVI-
SION B OF SECTION THREE HUNDRED TWENTY-THREE-A OF THIS ARTICLE,  INCLUD-
ING   THE   PROVISIONS   OF  SUBDIVISION  B  OF  SECTION  THREE  HUNDRED
TWENTY-THREE-A OF THIS ARTICLE RELATING TO THE REQUIRED  MINIMUM  ANNUAL
CONTRIBUTION  OF FOUR AND ONE-HALF PERCENT OF PENSIONABLE SALARIES; (II)
THE EMPLOYER'S DEFICIENCY CONTRIBUTIONS AND ADMINISTRATION CONTRIBUTIONS
FOR THE FISCAL YEAR DETERMINED IN ACCORDANCE  WITH  PARAGRAPHS  TWO  AND
THREE  OF  SUBDIVISION  B  OF SECTION THREE HUNDRED TWENTY-THREE OF THIS
ARTICLE; AND (III) ANY PAYMENTS BY THE EMPLOYER DUE IN THE  FISCAL  YEAR
ON  ACCOUNT  OF GROUP TERM LIFE INSURANCE, ADJUSTMENTS RELATING TO PRIOR
FISCAL YEARS'  OBLIGATIONS,  RETIREMENT  INCENTIVES  AND  PRIOR  AMORTI-
ZATIONS.
  (5)  "EMPLOYER'S  AVERAGE  ACTUARIAL  CONTRIBUTION  RATE"  FOR A GIVEN
FISCAL YEAR SHALL MEAN AN EMPLOYER'S  ACTUARIAL  CONTRIBUTION  FOR  SUCH
FISCAL  YEAR  DIVIDED  BY  THE EMPLOYER'S PROJECTED PAYROLL FOR THE SAME
FISCAL YEAR.
  (6) "EMPLOYER CONTRIBUTION RESERVE FUND"  OR  "FUND"  SHALL  MEAN  THE
EMPLOYER CONTRIBUTION RESERVE FUND ESTABLISHED PURSUANT TO SUBDIVISION E
OF THIS SECTION.
  (7)  "EMPLOYER'S  GRADED  CONTRIBUTION"  FOR A GIVEN FISCAL YEAR SHALL
MEAN THE AMOUNT DETERMINED BY APPLYING THE  EMPLOYER'S  GRADED  CONTRIB-
UTION  RATE  FOR SUCH FISCAL YEAR TO AN EMPLOYER'S PROJECTED PAYROLL FOR
THE SAME FISCAL YEAR.
  (8) "EMPLOYER'S GRADED CONTRIBUTION RATE"  FOR  A  GIVEN  FISCAL  YEAR
SHALL MEAN (I) THE SYSTEM GRADED CONTRIBUTION RATE FOR SUCH FISCAL YEAR,
OR  (II)  IN  THE  CASE  OF  AN  INDIVIDUAL  EMPLOYER FOR WHICH A GRADED
CONTRIBUTION RATE HAS BEEN DETERMINED PURSUANT  TO  PARAGRAPH  THREE  OF
SUBDIVISION  C  OF  THIS  SECTION,  THE GRADED CONTRIBUTION RATE FOR THE
INDIVIDUAL EMPLOYER FOR SUCH FISCAL YEAR.
  (9) "EMPLOYER'S GRADED PAYMENT" FOR A GIVEN FISCAL YEAR SHALL MEAN THE
AMOUNT BY WHICH AN EMPLOYER'S GRADED CONTRIBUTION FOR SUCH  FISCAL  YEAR
EXCEEDS THE EMPLOYER'S ACTUARIAL CONTRIBUTION FOR THE SAME FISCAL YEAR.
  (10)  "PRIOR  AMORTIZATION"  SHALL MEAN WITH RESPECT TO A GIVEN FISCAL
YEAR ANY PAYMENT DUE IN SUCH FISCAL YEAR ON  ACCOUNT  OF  AN  OBLIGATION
FROM  A  PRIOR  FISCAL  YEAR THAT AN EMPLOYER IS PERMITTED TO PAY TO THE
RETIREMENT SYSTEM ON AN AMORTIZED BASIS.

S. 6610--B                         104                        A. 9710--C

  (11) "SYSTEM AVERAGE ACTUARIAL CONTRIBUTION RATE" FOR A  GIVEN  FISCAL
YEAR  SHALL  MEAN  THE SUM OF ALL EMPLOYERS' ACTUARIAL CONTRIBUTIONS FOR
SUCH FISCAL YEAR, DIVIDED BY THE SUM OF ALL EMPLOYERS' PROJECTED PAYROLL
FOR THE SAME FISCAL YEAR.
  (12)  "SYSTEM  GRADED CONTRIBUTION RATE" FOR A GIVEN FISCAL YEAR SHALL
MEAN THE GRADED CONTRIBUTION RATE FOR THE RETIREMENT SYSTEM AS  A  WHOLE
DETERMINED  FOR  SUCH  FISCAL  YEAR  PURSUANT TO PARAGRAPH ONE OR TWO OF
SUBDIVISION C OF THIS SECTION.
  B. NOTWITHSTANDING THE PROVISIONS OF THIS CHAPTER OR ANY OTHER LAW  TO
THE  CONTRARY,  THE  COMPTROLLER,  IN  HIS OR HER DISCRETION, SHALL HAVE
AUTHORITY TO IMPLEMENT THIS SECTION. IF THE COMPTROLLER ELECTS TO IMPLE-
MENT THIS SECTION, THE PROVISIONS OF THIS SECTION  SHALL  APPLY  TO  THE
PAYMENT  OF  EMPLOYER  CONTRIBUTIONS  FOR  THE FISCAL YEAR COMMENCING ON
APRIL FIRST, TWO THOUSAND TEN, AND FOR SUBSEQUENT FISCAL YEARS.
  C. FOR EACH FISCAL YEAR TO WHICH THE PROVISIONS OF THIS SECTION APPLY,
THE COMPTROLLER SHALL DETERMINE  A  GRADED  CONTRIBUTION  RATE  FOR  THE
RETIREMENT SYSTEM AS A WHOLE IN THE MANNER PROVIDED IN THIS SUBDIVISION.
  (1)  FOR  THE  TWO  THOUSAND TEN - TWO THOUSAND ELEVEN FISCAL YEAR THE
SYSTEM GRADED CONTRIBUTION RATE SHALL BE SEVENTEEN AND ONE-HALF PERCENT.
  (2) FOR THE TWO THOUSAND ELEVEN - TWO THOUSAND TWELVE FISCAL YEAR, AND
SUBSEQUENT FISCAL YEARS,  SYSTEM  GRADED  CONTRIBUTION  RATES  SHALL  BE
DETERMINED AS FOLLOWS:
  (I)  IF  THE  SYSTEM  AVERAGE  ACTUARIAL CONTRIBUTION RATE FOR A GIVEN
FISCAL YEAR IS AT LEAST SEVENTEEN AND ONE-HALF PERCENT AND  EXCEEDS  THE
SYSTEM  GRADED  CONTRIBUTION  RATE  FOR THE IMMEDIATELY PRECEDING FISCAL
YEAR BY MORE THAN ONE PERCENTAGE POINT, THEN THE SYSTEM GRADED  CONTRIB-
UTION  RATE  FOR  THE  GIVEN  FISCAL  YEAR SHALL EQUAL THE SYSTEM GRADED
CONTRIBUTION RATE FOR THE IMMEDIATELY PRECEDING  FISCAL  YEAR  PLUS  ONE
PERCENTAGE  POINT,  PROVIDED  HOWEVER, THAT IN NO EVENT SHALL THE SYSTEM
GRADED CONTRIBUTION RATE BE LESS THAN SEVENTEEN AND ONE-HALF PERCENT;
  (II) IF THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION  RATE  FOR  A  GIVEN
FISCAL YEAR IS AT LEAST SEVENTEEN AND ONE-HALF PERCENT AND EITHER EQUALS
THE SYSTEM GRADED CONTRIBUTION RATE FOR THE IMMEDIATELY PRECEDING FISCAL
YEAR  OR EXCEEDS THE SYSTEM GRADED CONTRIBUTION RATE FOR THE IMMEDIATELY
PRECEDING FISCAL YEAR BY ONE PERCENTAGE POINT OR LESS, THEN  THE  SYSTEM
GRADED  CONTRIBUTION  RATE  FOR  THE  GIVEN  FISCAL YEAR SHALL EQUAL THE
SYSTEM  AVERAGE  ACTUARIAL  CONTRIBUTION  RATE  FOR  SUCH  FISCAL  YEAR,
PROVIDED, HOWEVER, THAT IN NO EVENT SHALL THE SYSTEM GRADED CONTRIBUTION
RATE BE LESS THAN SEVENTEEN AND ONE-HALF PERCENT;
  (III)  IF  THE  SYSTEM AVERAGE ACTUARIAL CONTRIBUTION RATE FOR A GIVEN
FISCAL YEAR IS LESS THAN SEVENTEEN AND ONE-HALF PERCENT AND GREATER THAN
THE SYSTEM GRADED CONTRIBUTION RATE FOR THE IMMEDIATELY PRECEDING FISCAL
YEAR, THEN THE SYSTEM GRADED CONTRIBUTION RATE FOR THE GIVEN FISCAL YEAR
SHALL EQUAL THE SYSTEM ACTUARIAL CONTRIBUTION RATE FOR SUCH FISCAL YEAR;
  (IV) IF THE SYSTEM AVERAGE ACTUARIAL CONTRIBUTION  RATE  FOR  A  GIVEN
FISCAL  YEAR IS SMALLER THAN THE SYSTEM GRADED CONTRIBUTION RATE FOR THE
IMMEDIATELY PRECEDING FISCAL YEAR BY MORE  THAN  ONE  PERCENTAGE  POINT,
THEN THE SYSTEM GRADED CONTRIBUTION RATE FOR THE GIVEN FISCAL YEAR SHALL
EQUAL  THE SYSTEM GRADED CONTRIBUTION RATE FOR THE IMMEDIATELY PRECEDING
FISCAL YEAR MINUS ONE PERCENTAGE POINT; AND
  (V) IF THE SYSTEM AVERAGE ACTUARIAL  CONTRIBUTION  RATE  FOR  A  GIVEN
FISCAL  YEAR  EITHER  EQUALS THE SYSTEM GRADED CONTRIBUTION RATE FOR THE
IMMEDIATELY PRECEDING FISCAL YEAR OR IS SMALLER THAN THE  SYSTEM  GRADED
CONTRIBUTION  RATE  FOR  THE  IMMEDIATELY  PRECEDING  FISCAL YEAR BY ONE
PERCENTAGE POINT OR LESS, THEN THE SYSTEM GRADED CONTRIBUTION  RATE  FOR

S. 6610--B                         105                        A. 9710--C

THE GIVEN FISCAL YEAR SHALL EQUAL THE SYSTEM ACTUARIAL CONTRIBUTION RATE
FOR SUCH FISCAL YEAR.
  (3)  THE  COMPTROLLER  SHALL  DETERMINE A GRADED CONTRIBUTION RATE FOR
INDIVIDUAL EMPLOYERS AS PROVIDED IN THIS PARAGRAPH.
  (I) IF THE ACTUARIAL CONTRIBUTION RATE FOR AN  EMPLOYER  FOR  A  GIVEN
FISCAL  YEAR  IS  EQUAL  TO  OR GREATER THAN FIFTY PERCENT OF THE SYSTEM
ACTUARIAL CONTRIBUTION RATE FOR SUCH YEAR, AND LESS  THAN  OR  EQUAL  TO
SEVENTY-FIVE  PERCENT  OF  SUCH SYSTEM ACTUARIAL CONTRIBUTION RATE, THEN
THE GRADED CONTRIBUTION RATE FOR THE EMPLOYER FOR THE FISCAL YEAR  SHALL
EQUAL  SEVENTY-FIVE  PERCENT  OF THE SYSTEM GRADED CONTRIBUTION FOR SUCH
YEAR.
  (II) IF THE ACTUARIAL CONTRIBUTION RATE FOR AN EMPLOYER  FOR  A  GIVEN
FISCAL  YEAR IS LESS THAN FIFTY PERCENT OF THE SYSTEM ACTUARIAL CONTRIB-
UTION RATE FOR SUCH YEAR, THEN THE  GRADED  CONTRIBUTION  RATE  FOR  THE
EMPLOYER  FOR  THE  FISCAL  YEAR SHALL EQUAL FIFTY PERCENT OF THE SYSTEM
GRADED CONTRIBUTION RATE FOR SUCH YEAR.
  D. (1) FOR ANY GIVEN FISCAL YEAR FOR WHICH AN EMPLOYER'S AVERAGE ACTU-
ARIAL CONTRIBUTION  RATE  EXCEEDS  THE  GRADED  CONTRIBUTION  RATE,  THE
EMPLOYER  SHALL  PAY  TO  THE  RETIREMENT  SYSTEM AN AMOUNT EQUAL TO THE
EMPLOYER'S ANNUAL BILL FOR SUCH YEAR OR, IN LIEU OF  PAYING  THE  ENTIRE
ANNUAL  BILL,  THE  EMPLOYER  MAY  PAY AN AMOUNT EQUAL TO THE EMPLOYER'S
ANNUAL BILL LESS ALL OR A PORTION OF THE EMPLOYER'S AMOUNT ELIGIBLE  FOR
AMORTIZATION  FOR  THE FISCAL YEAR. IF IN ACCORDANCE WITH THIS PARAGRAPH
THE EMPLOYER'S PAYMENT TO THE RETIREMENT SYSTEM IS LESS THAN THE  ENTIRE
AMOUNT  OF  THE  EMPLOYER'S ANNUAL BILL, THEN THE DIFFERENCE BETWEEN THE
EMPLOYER'S ANNUAL BILL, AND THE AMOUNT ACTUALLY PAID BY THE EMPLOYER  TO
THE RETIREMENT SYSTEM EXCLUSIVE OF ANY AMOUNT FROM THE EMPLOYER CONTRIB-
UTION  RESERVE  FUND  APPLIED TO REDUCE THE EMPLOYER'S PAYMENT, SHALL BE
THE AMOUNT AMORTIZED FOR THE FISCAL YEAR. THE AMOUNT AMORTIZED  FOR  THE
FISCAL  YEAR  SHALL  BE  PAID  TO  THE RETIREMENT SYSTEM IN EQUAL ANNUAL
INSTALLMENTS OVER A TEN-YEAR PERIOD, WITH INTEREST ON THE UNPAID BALANCE
AT A RATE DETERMINED BY THE COMPTROLLER WHICH APPROXIMATES A MARKET RATE
OF RETURN ON TAXABLE FIXED RATE SECURITIES WITH SIMILAR TERMS ISSUED  BY
COMPARABLE ISSUERS, AND WITH THE FIRST INSTALLMENT DUE IN THE IMMEDIATE-
LY SUCCEEDING FISCAL YEAR.
  (2) FOR ANY GIVEN FISCAL YEAR FOR WHICH THE SYSTEM GRADED CONTRIBUTION
RATE  EQUALS  OR  EXCEEDS  AN  AMORTIZING  EMPLOYER'S  AVERAGE ACTUARIAL
CONTRIBUTION RATE, THE AMORTIZING EMPLOYER SHALL PAY TO  THE  RETIREMENT
SYSTEM  AN AMOUNT EQUAL TO THE EMPLOYER'S ANNUAL BILL FOR SUCH YEAR PLUS
THE EMPLOYER'S GRADED PAYMENT FOR THE FISCAL YEAR.
  (I) IF THE AMORTIZING EMPLOYER'S ANNUAL BILL FOR THE FISCAL YEAR  DOES
NOT  INCLUDE  AN  AMOUNT  ATTRIBUTABLE TO A PRIOR AMORTIZATION, THEN THE
EMPLOYER'S GRADED PAYMENT SHALL BE PAID INTO THE  EMPLOYER  CONTRIBUTION
RESERVE  FUND PROVIDED FOR IN SUBDIVISION E OF THIS SECTION AND CREDITED
TO AN ACCOUNT WITHIN SUCH FUND ESTABLISHED FOR THE EMPLOYER.
  (II) IF THE AMORTIZING EMPLOYER'S ANNUAL  BILL  FOR  THE  FISCAL  YEAR
INCLUDES  AN AMOUNT ATTRIBUTABLE TO A PRIOR AMORTIZATION, THE EMPLOYER'S
GRADED PAYMENT SHALL BE USED  FIRST  TO  ELIMINATE  THE  AMOUNT  OF  THE
EMPLOYER'S  UNPAID  PRIOR  AMORTIZATION  BALANCES IN CHRONOLOGICAL ORDER
STARTING WITH OLDEST PRIOR AMORTIZATION BALANCE.   WHEN  IN  ANY  FISCAL
YEAR  THE  EMPLOYER'S GRADED PAYMENT ELIMINATES ALL BALANCES OWED ON THE
EMPLOYER'S PRIOR AMORTIZATIONS, ANY REMAINING PORTION OF THE  EMPLOYER'S
GRADED  PAYMENT  FOR SUCH FISCAL YEAR, AND THE EMPLOYER'S GRADED PAYMENT
IN ANY SUBSEQUENT FISCAL YEAR IN WHICH THE AMORTIZING  EMPLOYER  HAS  NO
UNPAID PRIOR AMORTIZATIONS, SHALL BE PAID INTO THE EMPLOYER CONTRIBUTION

S. 6610--B                         106                        A. 9710--C

RESERVE  FUND PROVIDED FOR IN SUBDIVISION E OF THIS SECTION AND CREDITED
TO AN ACCOUNT WITHIN SUCH FUND ESTABLISHED FOR THE EMPLOYER.
  (3)  NOTHING  IN THIS SUBDIVISION SHALL BE CONSTRUED AS PROHIBITING AN
EMPLOYER FROM PRE-PAYING ANY PRIOR AMORTIZATION.
  E. (1) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THERE SHALL  BE  MAIN-
TAINED  SEPARATE AND APART FROM THE OTHER FUNDS OF THE RETIREMENT SYSTEM
AN EMPLOYER CONTRIBUTION RESERVE FUND, THE ASSETS OF WHICH SHALL NOT  BE
USED OR INVESTED IN A MANNER CONTRARY TO THE PROVISIONS OF THIS SUBDIVI-
SION.  THE  FUND SHALL CONSIST OF ALL EMPLOYER CONTRIBUTIONS REQUIRED TO
BE DEPOSITED INTO THE FUND PURSUANT TO SUBDIVISION D  OF  THIS  SECTION.
WITHIN  SUCH  FUND  THERE  SHALL BE A SEPARATE ACCOUNT FOR EACH EMPLOYER
MAKING SUCH CONTRIBUTIONS AND PAYMENTS.
  (2) FOR ANY GIVEN FISCAL YEAR  FOR  WHICH  (I)  THE  SYSTEM  ACTUARIAL
CONTRIBUTION RATE EXCEEDS SEVENTEEN AND ONE-HALF PERCENT OF PAYROLL, AND
(II) FOR WHICH AN EMPLOYER'S AVERAGE ACTUARIAL CONTRIBUTION RATE EXCEEDS
THE  GRADED  CONTRIBUTION  RATE,  THE  BALANCE IN THE EMPLOYER'S ACCOUNT
WITHIN SUCH FUND SHALL BE APPLIED TO REDUCE THE  EMPLOYER'S  PAYMENT  TO
THE  RETIREMENT  SYSTEM  FOR SUCH FISCAL YEAR IN AN AMOUNT NOT TO EXCEED
THE DIFFERENCE BETWEEN THE EMPLOYER'S  ACTUARIAL  CONTRIBUTION  AND  THE
EMPLOYER'S GRADED CONTRIBUTION FOR THE FISCAL YEAR.
  (3)  NOTWITHSTANDING  THE PROVISIONS OF PARAGRAPH TWO OF THIS SUBDIVI-
SION, IF AT THE CLOSE OF ANY GIVEN FISCAL YEAR THE BALANCE OF AN EMPLOY-
ER'S ACCOUNT WITHIN THE FUND EXCEEDS ONE HUNDRED PERCENT OF THE  EMPLOY-
ER'S PAYROLL FOR SUCH FISCAL YEAR, THE EXCESS SHALL BE APPLIED TO REDUCE
THE  EMPLOYER'S PAYMENT TO THE RETIREMENT SYSTEM FOR THE NEXT SUCCEEDING
FISCAL YEAR.
  (4) THE ASSETS OF THE FUND SHALL BE INVESTED  IN  ONLY  THE  FOLLOWING
TYPES OF INVESTMENTS:
  (I)  OBLIGATIONS  OF  THE  UNITED  STATES OF AMERICA OR IN OBLIGATIONS
GUARANTEED BY AGENCIES OF THE UNITED STATES OF AMERICA WHERE THE PAYMENT
OF PRINCIPAL AND INTEREST ARE GUARANTEED BY THE UNITED STATES OF AMERICA
OR IN OBLIGATIONS OF THE STATE OF NEW YORK;
  (II) GENERAL OBLIGATION BONDS AND NOTES OF ANY STATE OTHER  THAN  THIS
STATE,  PROVIDED THAT SUCH BONDS AND NOTES RECEIVE THE HIGHEST RATING OF
AT LEAST ONE INDEPENDENT RATING AGENCY;
  (III) OBLIGATIONS OF, OR INSTRUMENTS ISSUED BY OR FULLY GUARANTEED  AS
TO  PRINCIPAL  AND  INTEREST  BY,  ANY  AGENCY OR INSTRUMENTALITY OF THE
UNITED STATES ACTING PURSUANT TO A GRANT OF AUTHORITY FROM THE  CONGRESS
OF  THE  UNITED  STATES, INCLUDING, BUT NOT LIMITED TO, ANY FEDERAL HOME
LOAN BANK OR BANKS, THE TENNESSEE VALLEY AUTHORITY, THE FEDERAL NATIONAL
MORTGAGE ASSOCIATION, THE FEDERAL HOME LOAN MORTGAGE CORPORATION AND THE
UNITED STATES POSTAL SERVICE;
  (IV) CERTIFICATE OF DEPOSITS THAT ARE FULLY SECURED BY THE  ISSUER  BY
DEPOSITING  WITH  THE  COMPTROLLER DIRECT OR INDIRECT OBLIGATIONS OF THE
UNITED STATES OR ITS AGENCIES OR A LETTER OF CREDIT ISSUED BY THE FEDER-
AL HOME LOAN BANK; AND
  (V) OBLIGATIONS OF ANY CORPORATION ORGANIZED UNDER  THE  LAWS  OF  ANY
STATE  IN  THE  UNITED  STATES  MATURING WITHIN TWO HUNDRED SEVENTY DAYS
PROVIDED THAT SUCH OBLIGATIONS RECEIVE THE HIGHEST RATING OF  TWO  INDE-
PENDENT RATING SERVICES DESIGNATED BY THE COMPTROLLER.
  (5) AT THE CLOSE OF EACH FISCAL YEAR, THE AMOUNT OF INTEREST AND EARN-
INGS  ATTRIBUTABLE  TO  EACH EMPLOYER'S ACCOUNT SHALL BE COMPUTED BY THE
ACTUARY AND CERTIFIED TO THE COMPTROLLER,  WHO  SHALL  THEREUPON  CREDIT
EACH EMPLOYER'S ACCOUNT IN ACCORDANCE THEREWITH.
  (6) THE ASSETS OF THE FUND SHALL BE EXCLUDED FROM THE ANNUAL VALUATION
OF  THE  ASSETS  AND  LIABILITIES  OF THE FUNDS OF THE RETIREMENT SYSTEM

S. 6610--B                         107                        A. 9710--C

REQUIRED BY SECTION THREE HUNDRED ELEVEN OF THIS TITLE.  THE  ASSETS  OF
THE FUND SHALL NOT FINANCE INCREASES IN PENSION BENEFITS.
  S 4. The opening paragraph and paragraph 1 of subdivision b of section
323 of the retirement and social security law, as amended by chapter 210
of  the  laws of 1990 and clause (ii) of subparagraph (a) of paragraph 1
as amended by chapter 947 of the laws of 1990, are amended  to  read  as
follows:
  Each  employer  shall  make  [two]  THREE contributions annually. They
shall be known as the normal contribution [as  defined  in  subparagraph
(a)  of  paragraph one of this subdivision and], the deficiency contrib-
ution [as defined in paragraph two of this subdivision], AND THE  ADMIN-
ISTRATION CONTRIBUTION. The rates thereof shall be computed by the actu-
ary.
  1.  [(a)]  Normal contribution. The rate of such contribution shall be
applied to the members' annual compensation as of the end of the  fiscal
year. Such rate shall be a uniform and constant rate per centum of annu-
al  compensation [when determined by dividing the valuation costs by the
payroll amount used in the valuation. Notwithstanding any  provision  of
law to the contrary, the valuation costs consist of:
  (i) the normal cost, which shall be the actuarial present value of the
employer  provided  benefits  accrued  during  the  year, based upon the
projected future salary on which benefits are expected to  be  paid,  by
prorating  each employee's projected benefit over his or her total years
of service;
  (ii) the supplemental cost, which  shall  be  the  cost  of  providing
supplemental  retirement allowance payments pursuant to subdivision e of
section three hundred seventy-eight of this article;
  (iii) the administrative cost, which shall  be  the  expenses  of  the
retirement  system  pursuant to paragraph three of subdivision b of this
section;
  (iv) the prior service cost, which shall be equal to the  interest  on
the  unfunded  actuarial  accrued liability or surplus plus a portion of
the unfunded liability or surplus, said  portion  to  be  equal  to  the
unfunded  liability  or  surplus  divided by the average future years of
service of active employees; and
  (v) the annual amortization cost, which shall be equal to  the  amount
of the annual amortization payment required to be paid into the system's
pension  accumulation  fund  under  section  three hundred sixteen-a and
three hundred seventeen-a of this article.
  Provided, however, in no event shall the amount of  contribution  cost
be less than zero.
  (b)  The comptroller is authorized to make appropriate adjustments for
those participating employers that have paid an amount in excess of  the
minimum  annual  amortization  payment required by section three hundred
seventeen-a of this article. The excess payment  shall  accumulate  with
interest  earned  at the rate used in the annual actuarial valuation and
be applied against future pension contribution  requirements  to  insure
equitable treatment of all participating employers.
  (c)  In  any  year in which no contribution is required to the pension
accumulation fund, any adjustment reducing a prior  year's  contribution
resulting  from the enactment of section three hundred sixteen-b of this
chapter, shall be credited with interest earned at the rate used in  the
annual  actuarial  valuation and applied against future pension contrib-
utions].  WHEN APPLIED TO THE COMPENSATION OF THE  AVERAGE  NEW  ENTRANT
DURING THE REMAINING PERIOD OF HIS OR HER MEMBERSHIP, SUCH RATE SHALL BE
COMPUTED  TO BE SUFFICIENT TO PROVIDE ALL THE BENEFITS, OTHER THAN THOSE

S. 6610--B                         108                        A. 9710--C

ON ACCOUNT OF PRIOR SERVICE, GRANTED BY THIS ARTICLE AND WHICH ARE PAYA-
BLE FROM FUNDS CONTRIBUTED TO THE PENSION ACCUMULATION FUND.
  Such  rate  shall be computed each year by means of an actuarial valu-
ation as prescribed in section three hundred eleven  of  this  [chapter]
ARTICLE  AND  AS  AUTHORIZED  BY SECTION THREE HUNDRED TWENTY-THREE-A OF
THIS TITLE.
  S 5. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This bill would amend the Retirement and Social  Security  Law  as  it
pertains  to  employer  bills  of the New York State and Local Employees
Retirement System (ERS) and the New York State and Local Police and Fire
Retirement System (PFRS).
  This bill puts in place a program that allows ERS and PFRS  employers,
if  they choose to participate, to amortize a portion of their bill with
their respective Retirement System  when  employer  contributions  rates
rise  above certain levels. If they do this, then when rates are falling
below certain levels and they have  paid  off  all  outstanding  amorti-
zations,  the  employer will be required to pay additional monies into a
reserve fund that will be used when employer contribution rates begin to
rise in the future.
  If this bill is enacted, we estimate  that  there  would  be  a  small
administrative  cost  to  the System to revise the current billing proc-
esses.
  This estimate, dated February 2,  2010,  and  intended  for  use  only
during  the  2010  Legislative  Session,  is  Fiscal  Note No. 2010-104,
prepared by the Actuary for the New  York  State  and  Local  Employees'
Retirement  System  and  the  New  York  State and Local Police and Fire
Retirement System.

                                 PART UU

  Section 1. The New York  state  urban  development  corporation  shall
submit for approval to the director of the budget a comprehensive finan-
cial  plan  for  the  corporation and its subsidiaries for expenditures,
regardless of source, including but not limited to those from  the  debt
service account, the excess debt service account, the housing repair and
modernization fund account, the interest income account, and the econom-
ic  development  income  account,  in such detail as the director of the
budget may require. The director of the budget shall file copies of such
financial plan with the senate finance committee, the assembly ways  and
means  committee  and  the department of audit and control in both paper
and electronic format.
  S 2. 1. Notwithstanding any provision of law to the contrary, the  New
York  state  urban  development corporation shall establish accounts and
subaccounts within the treasury of such corporation which shall  reflect
and  consist  of  all  funds  made available to such corporation, at any
time, from any sources for its corporate purposes.  Such  account  shall
consist of, but not be limited to, the following:
  (i)  general  and  administrative accounts, which shall consist of all
funds made available for the operational expenses of such corporation;
  (ii) general and administrative accounts of certain subsidiary  corpo-
rations,  which shall consist of all funds made available for the opera-
tional expenses of the  mortgage  loan  enforcement  and  administration
corporation  and  the  42nd  street  development  project, incorporated,
provided, however, that such subsidiary shall be established as a  sepa-
rate account;

S. 6610--B                         109                        A. 9710--C

  (iii)  debt  service  account,  which  shall consist of all funds made
available for debt service payments on  the  outstanding  general  obli-
gations  of  the  corporation  where the original issue of such bonds or
notes was prior to April 1,  1976,  and  including  any  refinancing  or
renewal of such bonds and notes, provided such account shall not, in any
manner,  reduce  any  debt  service reserve fund below a level agreed to
pursuant to a statute, covenant or other  contract  between  the  corpo-
ration and such bondholders or noteholders;
  (iv)  excess  debt  service  account, which shall consist of all funds
made available from the net savings achieved as a result of the  refund-
ing  of  the  corporation's general purpose bonds authorized pursuant to
resolution number 96-ud-526 of the public authorities control board. Net
savings shall be  determined  by  the  difference  between  annual  debt
service payments which would have been required pursuant to the refunded
bonds  and the annual debt service payments for the corporation's corpo-
rate purpose bonds issued to accomplish such refunding;
  (v) housing repair and modernization fund account, which shall consist
of funds made available from the excess debt service account  to  assist
in  maintaining  the residential and commercial portfolios of the corpo-
ration as determined by the chairman of the corporation or his designee;
  (vi) buildout account, which shall consist of all funds made available
for the payment of expenses associated with final settlements on remain-
ing issues of construction costs and mortgage amounts on residential and
nonresidential projects financed by the corporation;
  (vii) project repair account, which shall consist of  all  funds  made
available  for  the maintenance, servicing or repairing of real property
in the residential, industrial and commercial portfolios of such  corpo-
rations;
  (viii) economic development income account, which shall consist of all
payments,  including payments to compensate for any funds, time or other
costs provided by the corporation in relation to nonresidential projects
and all other reimbursable corporate service income from economic devel-
opment projects and payments which are provided to such corporation  for
purposes  of  repayment  of  funds  in  respect to any contract or other
agreements entered into by the corporation which are attributable to any
economic development project of the corporation, provided, however, that
such account shall not include funds representing repayments  which  are
to  be  returned  to  the  development  of  such project pursuant to any
contract or other agreement entered into by the corporation;
  (ix) economic development program and project  accounts,  which  shall
consist  of  all  funds made available for specific economic development
programs and projects excluding any program or project authorized  by  a
resolution  or  other  action of the corporation prior to April 1, 1976,
and excluding any residential  project,  provided,  however,  that  each
specified program and project shall be established as a separate account
unless otherwise authorized pursuant to an appropriation;
  (x) new communities and community support account, which shall consist
of  all funds made available for, and all income received from the Audu-
bon and Radisson communities;
  (xi) Roosevelt  Island  operating  corporation  account,  which  shall
consist  of  all  funds made available for, and all income received from
the Roosevelt Island community;
  (xii) interest income account,  which  shall  consist  of  all  moneys
earned  by the corporation from investment of any funds available in the
accounts and subaccounts within the treasury of the corporation; and

S. 6610--B                         110                        A. 9710--C

  (xiii) mortgage servicing fee account,  which  shall  consist  of  all
funds made available to the mortgage loan enforcement and administration
corporation  for  the  payment  of  fees  to the housing special revenue
account of the miscellaneous special revenue fund  associated  with  the
provision  of  mortgage  servicing activities by the division of housing
and community renewal.
  2. The amounts deposited in any such account may be interchanged  with
any  other  account  for  purposes  of investment and may be commingled,
provided, however, that such interchange may not  increase  or  decrease
any  account,  other  than  the  debt  service account, and the interest
income account, by more than five percent in the aggregate in the entire
period of any fiscal year of the corporation. Provided further, that  in
addition  to  any other specific exception provided for in this section,
the following exemptions to the above interchange provision shall  apply
for  the  purposes  of  the  debt  service  account, the interest income
account, the project repair account, the mortgage servicing fee account,
the general and administrative account of the mortgage loan  enforcement
and  administration  corporation,  excess  debt service account, housing
repair and modernization fund account, Roosevelt Island operating corpo-
ration account and the economic development income account:
  (i) Interchange from the debt service account  to  any  other  account
shall be unlimited, but all such transfers from the debt service account
shall  be  repaid  quarterly to such account on or before June 30, 2010,
September 30, 2010, December 31, 2010 and March 31,  2011,  except  for:
(A)  $30,762,000  which shall be transferred to the general and adminis-
trative account from the debt service account during  the  state  fiscal
year  commencing April 1, 2010, and such amount of $30,762,000 shall not
be repaid to the debt service account; (B)  $2,000,000  which  shall  be
transferred to the general and administrative account of the 42nd street
development  project, incorporated and which shall be repaid pursuant to
a repayment agreement as set out in paragraph (vi) of this subdivision.
  (ii) Interchange from the excess debt service account shall be  unlim-
ited,  but all such transfers from the excess debt service account shall
be repaid quarterly to such account on or before June 30, 2010,  Septem-
ber 30, 2010, December 31, 2010, and March 31, 2011, except for:  (A) an
amount  sufficient  to  fund  the  housing repair and modernization fund
account to assist in maintaining the residential and commercial  portfo-
lios of the corporation as determined by the chairman of the corporation
or  his  designee; (B) an amount necessary to invest in the job develop-
ment authority, as certified by the chairman of  the  authority  or  his
designee, to provide funds in order to pay lawful debts of the authority
provided  that  the corporation shall not make any payment or investment
for the benefit of the authority unless and until it  has  independently
verified  that the authority does not have sufficient funds available to
pay its lawfully incurred  debts  and  obligations,  and  with  any  net
savings  which  remain  and are available; (C) all remaining balances of
funds contained in the excess debt service account shall be remitted  to
the  credit  of  the state of New York general fund not later than March
31, 2010.
  (iii) Interchange from the interest income account, other than to  the
general  and administrative account of the mortgage loan enforcement and
administration corporation, may be unlimited.
  (iv) Interchange to the project repair account from any account may be
unlimited, and the corporation shall transfer up to $10,000,000 to  such
account  from  any  account  during  the fiscal year commencing April 1,
2010, and such amount up to $10,000,000 shall not be repaid.

S. 6610--B                         111                        A. 9710--C

  (v) Interchange between the general and administrative account of  the
mortgage  loan  enforcement and administration corporation and any other
account shall comply with the provisions specified herein,  except  that
up  to  $1,700,000  shall  be transferred to such subsidiary corporation
during  the  fiscal  year  commencing  April 1, 2010 and any such amount
shall not be repaid.
  (vi) An advance up to $2,000,000 may be made  from  the  debt  service
account  to  the  general  and administrative account of the 42nd street
development project, incorporated, provided, however, that  before  such
advance  is  made the New York state urban development corporation shall
enter into an agreement with the director of the  budget  providing  for
repayment  of  such  advance. Subject to the approval of the director of
the budget, and notification of the chairs  of  the  assembly  ways  and
means  and  the  senate  finance committees in both paper and electronic
format, the corporation is hereby authorized to expend revenues  of  the
project  for  services and expenses of the corporation. The total amount
expended by the 42nd street development project, incorporated shall  not
exceed  $2,000,000  and any unexpended project revenues shall be used to
reduce the total advance provided to the project from the  debt  service
account.
  (vii)  Interchange  from  the  debt  service  account  to the mortgage
servicing fee account of the  mortgage  loan  enforcement  and  adminis-
tration  corporation  shall comply with the provisions specified herein,
except that up to $2,838,000  shall  be  transferred  to  such  mortgage
servicing  fee  account  during the fiscal year commencing April 1, 2010
and such amount shall not be repaid. Prior  to  the  allocation  of  any
moneys  from  the  debt  service  account to the 42nd street development
project, incorporated, and the mortgage loan  enforcement  and  adminis-
tration  corporation  for the fiscal year commencing April 1, 2010, each
corporation shall submit for approval to the director of the  budget,  a
comprehensive  financial plan for each corporation for such fiscal year,
in such detail as the director of the budget shall require in both paper
and electronic format. The financial plan  shall  be  submitted  to  the
budget  director  on  or before May 15, 2010. A report for each plan and
any plan update, if necessary, shall be submitted to the director of the
budget on or before August 15, 2010, November 15, 2010 and February  15,
2011. Each such report shall provide the actual revenue and expenditures
for  the preceding quarters ending June 30, 2010, September 30, 2010 and
December 31, 2010, in such detail as the director of  the  budget  shall
require.  Further,  any  plan  update shall revise, where necessary, the
revenue and expenditure plan for each corporation for the  remainder  of
the  fiscal  year  beginning  April  1, 2010. No transfer to the general
administrative account of the  corporation  shall  occur  prior  to  the
approval  of  the  financial  plan  and  unless  in  compliance with the
approved financial plan.
  The director of the budget shall file copies of such financial  plans,
quarterly  reports and any plan updates with the department of audit and
control and the senate finance committee and the assembly ways and means
committee in both paper and electronic format. Interchange made  to  the
debt  service  account  shall not be repaid if such payment would reduce
any debt service or debt service reserve requirements below  any  amount
required  pursuant  to a covenant, contract or other agreements with the
bondholders and noteholders. No payments or deposits shall be made  from
any  debt service reserve fund established pursuant to the provisions of
section 20 of the New York state urban development  corporation  act  to
any  account of the corporation other than the debt service account; and

S. 6610--B                         112                        A. 9710--C

such payment or deposit shall only occur if deemed necessary to meet the
payments specified in the debt service account described herein.
  Provided  further,  (a) that such investment shall be made pursuant to
the provisions of subdivision 22 of section 5  of  the  New  York  state
urban  development  corporation  act;  (b) that such investment shall be
made in a fashion which shall enable the corporation to timely meet  its
obligations; (c) that such investment shall be specified in each account
in  respect to the amount contributed, and that upon termination of such
investment each account shall be reimbursed. Such account and subaccount
shall be included in  detailed  quarterly  reports  of  the  corporation
commencing  with the quarterly report for the period immediately preced-
ing April 1, 2010 which set forth  the  status  of  all  such  accounts,
including for each account and subaccount the amount in such accounts at
the  beginning  of such quarter (from and including the entire period of
the first day of the operative calendar  year),  the  payments  of  such
accounts,  the  payments  from  such  accounts  and  the  amount in such
accounts at the close of such quarter (to and including the entire peri-
od of the last day of the operative calendar year). Such detailed  quar-
terly report shall be prepared and submitted within 30 days of the close
of each fiscal quarter of the corporation to the director of the budget,
and  the  chair  of  the  senate  finance committee and the chair of the
assembly ways and means committee in both paper and  electronic  format.
Such  accounts and subaccounts shall be detailed in the annual report of
the corporation.
  No disbursements or payments shall be made from the economic  develop-
ment income account or the interest income account except upon a request
for  the  transfer of such funds to the director of the budget who shall
file such request and approval thereof with the department of audit  and
control  and  copies  thereof  with the senate finance committee and the
assembly ways and means committee in both paper and  electronic  format,
except  that  such  prior  approval  shall not be required in respect to
repayments to the state. Any amounts in any debt service reserve  funds,
any  inconsistent  provisions of law notwithstanding, established by the
corporation pursuant to the provisions of section 20  of  the  New  York
state  urban  development  corporation  act,  which would not reduce the
amount of such fund or funds to less than  (1)  the  maximum  amount  of
principal  and  interest  maturing  and  becoming due in 2010 or (2) any
amount required pursuant to a covenant, contract or other agreement with
bondholders and noteholders shall be paid  by  the  corporation  to  the
state  comptroller  for deposit to the credit of the general fund of the
state on or before March 1, 2011.   In the event  that  the  corporation
shall fail to make such payment, the comptroller shall withhold from any
appropriations otherwise available to the corporation, the amount suffi-
cient  to pay to the general fund the amounts required to be paid by the
corporation pursuant to the foregoing provisions. The state  comptroller
shall create accounts for each item of appropriation.
  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,  2010;  and
provided  further that sections one and two of this act shall expire and
be deemed repealed March 31, 2011.

                                 PART VV

  Section 1. The state finance law is amended by adding  a  new  section
97-jjjj to read as follows:

S. 6610--B                         113                        A. 9710--C

  S  97-JJJJ.  EDUCATION ASSESSMENT ACCOUNT.   1. THERE IS HEREBY ESTAB-
LISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSION-
ER OF TAXATION AND FINANCE  AN  ACCOUNT  OF  THE  MISCELLANEOUS  SPECIAL
REVENUE FUND TO BE KNOWN AS THE "EDUCATION ASSESSMENT ACCOUNT".
  2.  NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY,
THE STATE COMPTROLLER IS HEREBY AUTHORIZED AND DIRECTED TO  RECEIVE  FOR
DEPOSIT  TO  THE CREDIT OF THE EDUCATION ASSESSMENT ACCOUNT ALL REVENUES
RECEIVED PURSUANT TO AN APPROPRIATION FOR SUCH  ACCOUNT,  INCLUDING  BUT
NOT LIMITED TO FUNDS TRANSFERRED FROM ANOTHER ACCOUNT.
  3. MONEYS OF THIS ACCOUNT, FOLLOWING APPROPRIATION BY THE LEGISLATURE,
SHALL  BE  AVAILABLE  TO THE STATE EDUCATION DEPARTMENT FOR SERVICES AND
EXPENSES RELATING TO  STATE  ASSESSMENTS  OF  ELEMENTARY  AND  SECONDARY
SCHOOL  STUDENTS,  INCLUDING  BUT  NOT  LIMITED TO THE STATE HIGH SCHOOL
EQUIVALENCY DIPLOMA EXAMINATION. MONEYS OF THIS ACCOUNT  SHALL  ONLY  BE
AVAILABLE FOR EXPENDITURE PURSUANT TO APPROVAL OF AN EXPENDITURE PLAN BY
THE DIRECTOR OF THE BUDGET.
  S 2. This act shall take effect immediately.

                                 PART WW

  Section  1. Paragraph 34 of subdivision (b) of section 1101 of the tax
law, as added by section 1 of part U-1 of chapter  57  of  the  laws  of
2009, is amended 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
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  (I)  a  taxicab
[and],  (II)  a bus, AND (III), IN A CITY OF ONE MILLION OR MORE IN THIS
STATE, AN AFFILIATED LIVERY VEHICLE, and excluding any scheduled  public
service.  Limousine  means  a  vehicle  with a seating capacity of up to
fourteen persons, excluding the driver. Black car means a for-hire vehi-
cle dispatched from a central facility.    "AFFILIATED  LIVERY  VEHICLE"
MEANS  A  FOR-HIRE  MOTOR  VEHICLE  WITH A SEATING CAPACITY OF UP TO SIX
PERSONS, INCLUDING THE DRIVER, OTHER THAN A BLACK CAR OR  LUXURY  LIMOU-
SINE,  THAT IS AUTHORIZED AND LICENSED BY THE TAXI AND LIMOUSINE COMMIS-
SION OF A CITY OF ONE MILLION OR MORE TO BE DISPATCHED BY A BASE STATION
LOCATED IN SUCH A CITY AND REGULATED BY SUCH TAXI AND LIMOUSINE  COMMIS-
SION; AND THE CHARGES FOR SERVICE PROVIDED BY AN AFFILIATED LIVERY VEHI-
CLE  ARE ON THE BASIS OF FLAT RATE, TIME, MILEAGE, OR ZONES AND NOT ON A
GARAGE TO GARAGE BASIS.
  S 2. Section 1213 of the tax law, as amended by section 5 of part  U-1
of chapter 57 of the laws of 2009, is amended to read as follows:

S. 6610--B                         114                        A. 9710--C

  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] PURSUANT TO THE AUTHORITY OF
this article shall be due the jurisdiction or  jurisdictions  where  the
service commenced.
  S  3.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after June 1, 2009, and  shall
apply  in accordance with applicable transitional provisions in sections
1106 and 1217 of the tax law.

                                 PART XX

  Section 1.  Section 71 of the correction law is amended  by  adding  a
new subdivision 8 to read as follows:
  8. (A) IN EACH YEAR IN WHICH THE FEDERAL DECENNIAL CENSUS IS TAKEN BUT
IN  WHICH  THE  UNITED  STATES BUREAU OF THE CENSUS DOES NOT IMPLEMENT A
POLICY OF REPORTING INCARCERATED PERSONS AT EACH SUCH PERSON'S  RESIDEN-
TIAL  ADDRESS  PRIOR  TO  INCARCERATION,  THE DEPARTMENT OF CORRECTIONAL
SERVICES SHALL BY JULY FIRST OF THAT SAME YEAR DELIVER TO  THE  LEGISLA-
TIVE  TASK FORCE ON DEMOGRAPHIC RESEARCH AND REAPPORTIONMENT THE FOLLOW-
ING INFORMATION FOR EACH INCARCERATED PERSON SUBJECT TO THE JURISDICTION
OF THE DEPARTMENT AND LOCATED IN THIS STATE ON THE DATE  FOR  WHICH  THE
DECENNIAL CENSUS REPORTS POPULATION:
  (I) A UNIQUE IDENTIFIER, NOT INCLUDING THE NAME, FOR EACH SUCH PERSON;
  (II)  THE  STREET  ADDRESS  OF THE CORRECTIONAL FACILITY IN WHICH SUCH
PERSON WAS INCARCERATED AT THE TIME OF SUCH REPORT;
  (III) THE RESIDENTIAL ADDRESS OF SUCH PERSON  PRIOR  TO  INCARCERATION
(IF ANY); AND
  (IV) ANY ADDITIONAL INFORMATION AS THE TASK FORCE MAY SPECIFY PURSUANT
TO LAW.
  (B)  THE  DEPARTMENT  SHALL PROVIDE THE INFORMATION SPECIFIED IN PARA-
GRAPH (A) OF THIS SUBDIVISION IN SUCH FORM AS THE LEGISLATIVE TASK FORCE
ON DEMOGRAPHIC RESEARCH AND REAPPORTIONMENT SHALL SPECIFY.
  S 2. Section 83-m of the legislative law is amended by  adding  a  new
subdivision 13 to read as follows:

S. 6610--B                         115                        A. 9710--C

  13.  (A) THE TASK FORCE SHALL SPECIFY THE FORM IN WHICH THE DEPARTMENT
OF CORRECTIONAL SERVICES SHALL PROVIDE SUCH INFORMATION REQUIRED  TO  BE
REPORTED  TO  THE  TASK  FORCE  PURSUANT TO SUBDIVISION EIGHT OF SECTION
SEVENTY-ONE OF THE CORRECTION LAW.
  (B)  UPON  RECEIPT  OF  SUCH  INFORMATION FOR EACH INCARCERATED PERSON
SUBJECT TO THE JURISDICTION OF THE DEPARTMENT OF CORRECTIONAL  SERVICES,
THE  TASK  FORCE  SHALL  DETERMINE THE CENSUS BLOCK CORRESPONDING TO THE
STREET ADDRESS OF EACH SUCH PERSON'S RESIDENTIAL ADDRESS PRIOR TO INCAR-
CERATION (IF ANY), AND THE CENSUS  BLOCK  CORRESPONDING  TO  THE  STREET
ADDRESS  OF  THE  CORRECTIONAL  FACILITY  IN  WHICH SUCH PERSON WAS HELD
SUBJECT TO THE JURISDICTION OF SUCH DEPARTMENT. UNTIL SUCH TIME  AS  THE
UNITED STATES BUREAU OF THE CENSUS SHALL IMPLEMENT A POLICY OF REPORTING
EACH SUCH INCARCERATED PERSON AT SUCH PERSON'S RESIDENTIAL ADDRESS PRIOR
TO  INCARCERATION, THE TASK FORCE SHALL USE SUCH DATA TO DEVELOP A DATA-
BASE IN WHICH ALL INCARCERATED PERSONS SHALL BE, WHERE  POSSIBLE,  ALLO-
CATED  FOR  REDISTRICTING  PURPOSES,  SUCH  THAT  EACH  GEOGRAPHIC  UNIT
REFLECTS  INCARCERATED  POPULATIONS  AT  THEIR  RESPECTIVE   RESIDENTIAL
ADDRESSES  PRIOR  TO  INCARCERATION RATHER THAN AT THE ADDRESSES OF SUCH
CORRECTIONAL FACILITIES.  FOR ALL INCARCERATED PERSONS WHOSE RESIDENTIAL
ADDRESS PRIOR TO INCARCERATION WAS OUTSIDE OF THE STATE, OR FOR WHOM THE
TASK FORCE CANNOT IDENTIFY THEIR PRIOR RESIDENTIAL ADDRESS, AND FOR  ALL
PERSONS  CONFINED  IN A FEDERAL CORRECTIONAL FACILITY ON CENSUS DAY, THE
TASK FORCE SHALL CONSIDER THOSE PERSONS  TO  HAVE  BEEN  COUNTED  AT  AN
ADDRESS  UNKNOWN  AND  PERSONS  AT  SUCH  UNKNOWN  ADDRESS  SHALL NOT BE
INCLUDED IN SUCH DATA SET CREATED PURSUANT TO THIS PARAGRAPH.  THE  TASK
FORCE  SHALL  DEVELOP  AND MAINTAIN SUCH AMENDED POPULATION DATA SET AND
SHALL MAKE SUCH AMENDED DATA SET  AVAILABLE  TO  LOCAL  GOVERNMENTS,  AS
DEFINED  IN  SUBDIVISION EIGHT OF SECTION TWO OF THE MUNICIPAL HOME RULE
LAW, AND FOR THE DRAWING OF ASSEMBLY AND SENATE DISTRICTS.  THE ASSEMBLY
AND SENATE DISTRICTS SHALL BE DRAWN USING SUCH AMENDED  POPULATION  DATA
SET.
  (C)  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  LAW,  THE INFORMATION
REQUIRED TO BE PROVIDED PURSUANT TO SUBDIVISION EIGHT OF SECTION  SEVEN-
TY-ONE  OF THE CORRECTION LAW SHALL BE TREATED AS CONFIDENTIAL AND SHALL
NOT BE DISCLOSED BY THE TASK FORCE EXCEPT AS AGGREGATED BY CENSUS  BLOCK
FOR PURPOSE SPECIFIED IN THIS SUBDIVISION.
  S  3.  The opening paragraph, subclause (i.) of clause (a.) and clause
(c.) of subparagraph 13 of paragraph a of subdivision 1 of section 10 of
the municipal home rule law, as added by chapter  834  of  the  laws  of
1969, are amended to read as follows:
  The apportionment of its legislative body and, only in connection with
such  action  taken  pursuant  to this subparagraph, the composition and
membership of such body, the terms of office  of  members  thereof,  the
units  of local government or other areas from which representatives are
to be chosen and the voting powers of individual members of such  legis-
lative  body.  [The]  EXCEPT FOR THE EQUAL APPORTIONMENT REQUIREMENTS IN
SUBCLAUSE (I.) OF CLAUSE (A.) AND  CLAUSE  (C.)  OF  THIS  SUBPARAGRAPH,
WHICH  SHALL  APPLY GENERALLY TO ANY LOCAL GOVERNMENT, THE power granted
by this subparagraph shall be in addition to and not in substitution for
any other power and the provisions of this subparagraph shall apply only
to local governments which adopt a plan of apportionment thereunder.
  (i.) The plan shall provide substantially equal weight for  [all]  the
[voters] POPULATION of that local government in the allocation of repre-
sentation in the local legislative body.
  (c.)  As  used  in  this subparagraph the term "population" shall mean
residents, citizens, or registered voters. FOR SUCH PURPOSES, NO  PERSON

S. 6610--B                         116                        A. 9710--C

SHALL  BE DEEMED TO HAVE GAINED OR LOST A RESIDENCE, OR TO HAVE BECOME A
RESIDENT OF A LOCAL GOVERNMENT,  AS  DEFINED  IN  SUBDIVISION  EIGHT  OF
SECTION TWO OF THIS CHAPTER, BY REASON OF BEING SUBJECT TO THE JURISDIC-
TION  OF  THE DEPARTMENT OF CORRECTIONAL SERVICES AND PRESENT IN A STATE
CORRECTIONAL FACILITY PURSUANT TO SUCH JURISDICTION. A  population  base
for  such  a  plan of apportionment shall utilize the latest statistical
information obtainable from an official enumeration  done  at  the  same
time  for all the residents, citizens, or registered voters of the local
government.  Such a plan may allocate, by  extrapolation  or  any  other
rational  method,  such latest statistical information to representation
areas or units of local government, provided that  any  plan  containing
such an allocation shall have annexed thereto as an appendix, a detailed
explanation of the allocation.
  S  4.  Severability.  If any section, subdivision, paragraph, subpara-
graph, clause or other part of this act or its application is held to be
invalid by final judgment of a court  of  competent  jurisdiction,  such
invalidity shall not be deemed to impair or otherwise affect the validi-
ty  of  the remaining provisions or applications of this act that can be
given effect without such invalid provision  or  application,  but  such
invalidity  shall  be  confined  to the section, subdivision, paragraph,
subparagraph, clause or other  part  of  this  act  or  its  application
directly  held  invalid thereby, which are declared to be severable from
the remainder of this act. It is declared to be the intent of the legis-
lature that this act would have been enacted but for  any  such  invalid
provision or application thereof.
  S  5.  This act shall take effect immediately; provided, however, that
the amendments to section 83-m of the legislative law  made  by  section
two of this act shall not affect the repeal of such section and shall be
deemed repealed therewith.

                                 PART YY

  Section  1. Subdivision 2-b of section 470 of the tax law, as added by
section 16 of part D of chapter 134 of the laws of 2010, is  amended  to
read as follows:
  2-b.  "Little  cigar."  Any roll for smoking made wholly or in part of
tobacco if such product is wrapped in any substance containing  tobacco,
other than natural leaf tobacco wrapper, and weighing not more than four
pounds  per  thousand  OR  WITH  A CELLULOSE ACETATE OR OTHER INTEGRATED
FILTER.
  S 2. This act shall take effect on the same date and  same  manner  as
section 16 of part D of chapter 134 of the laws of 2010, takes effect.
  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 YY of this act shall be
as specifically set forth in the last section of such Parts.