Enacts into law major components of legislation necessary to implement the state fiscal plan relating to revenues of the state
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| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| Mar 10, 2015 |
referred to finance |
Enacts into law major components of legislation necessary to implement the state fiscal plan relating to revenues of the state; relates to the New York city personal income tax rates (Part B); relates to the suspension of STAR exemptions of property owned by persons with outstanding tax liabilities (Part C); relates to a recoupment of certain STAR exemptions
S T A T E O F N E W Y O R K
________________________________________________________________________
4209
2015-2016 Regular Sessions
I N S E N A T E
March 9, 2015
___________
Introduced by COMMITTEE ON RULES -- read twice and ordered printed, and
when printed to be committed to the Committee on Finance
AN ACT intentionally omitted (Part A); to amend the state finance law,
the tax law and the administrative code of the city of New York, in
relation to the New York city personal income tax rates (Part B); to
amend the real property tax law, the tax law, and section 3 of part B
of chapter 59 of the laws of 2012 amending the real property tax law
and the tax law relating to the suspension of STAR exemptions of prop-
erty owned by persons with outstanding tax liabilities, in relation to
the suspension of STAR exemptions of property owned by persons with
outstanding tax liabilities (Part C); intentionally omitted (Part D);
to amend the real property tax law, in relation to a recoupment of
certain STAR exemptions; to amend the administrative code of the city
of New York and the emergency tenant protection act of nineteen seven-
ty-four, in relation to determining primary residency and to amend the
tax law, in relation to verification of residence (Part E); to amend
the state finance law, in relation to making technical corrections to
the school tax relief fund; and to provide one-time relief to STAR
registrants who failed to file timely STAR exemption applications
(Part F); to amend the real property tax law and the tax law, in
relation to the New York property tax relief check program; to amend
the education law and the general municipal law, in relation to
certification of compliance with the New York property tax relief
check program requirements (Part G); to amend the tax law and the
administrative code of the city of New York, in relation to extending
the limitation on charitable contribution deductions for certain
taxpayers (Part H); to amend the tax law, the administrative code of
the city of New York and the labor law, in relation to making certain
technical corrections (Part I); to amend the tax law, in relation to a
report regarding the empire state commercial production tax credit;
and to repeal section 9 of part V of chapter 62 of the laws of 2006,
amending the tax law relating to the empire state commercial
production tax credit, relating thereto (Part J); to amend the econom-
ic development law, in relation to including video game developers in
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD20018-01-5
S. 4209 2
the excelsior jobs program (Part K); intentionally omitted (Part L);
intentionally omitted (Part M); to amend the tax law, in relation to
the business income base rate; in relation to certain small business
taxpayers (Part N); to amend the economic development law and the tax
law, in relation to creating a technology internship program and
establishing tax credits for such program (Part O); intentionally
omitted (Part P); intentionally omitted (Part Q); to amend the envi-
ronmental conservation law, the tax law and the general municipal law,
in relation to eligibility for participation in the brownfield cleanup
program, assignment of the brownfield redevelopment tax credits and
brownfield opportunity areas; to amend part H of chapter 1 of the laws
of 2003, amending the tax law relating to brownfield redevelopment tax
credits, remediated brownfield credit for real property taxes for
qualified sites and environmental remediation insurance credits, in
relation to tax credits for certain sites; to amend the environmental
conservation law, in relation to hazardous waste generator fees and
taxes; to amend the environmental conservation law and the state
finance law, in relation to the environmental restoration program; and
to repeal certain provisions of the environmental conservation law and
the tax law relating thereto (Part R); to amend the business corpo-
ration law, the limited liability company law, the partnership law and
the tax law, in relation to the biennial statements filed with the
secretary of state (Part S); to amend the tax law, in relation to
making corrections to the corporate tax reform provisions; and repeal-
ing certain provisions of such law relating thereto (Part T); to amend
the tax law, in relation to exempting certain items of tangible
personal property furnished to customers by certain cider producers,
breweries, and distilleries at tastings (Part U); to amend the tax
law, in relation to the imposition of the sales and compensating use
tax on prepaid mobile calling services (Part V); intentionally omitted
(Part W); intentionally omitted (Part X); intentionally omitted (Part
Y); to amend the tax law, in relation to exempting electricity
provided by certain sources from the sales tax imposed by article 28
of the tax law and omitting such exemption from the taxes imposed
pursuant to the authority of article 29 of the tax law, unless a
locality elects otherwise; and to repeal subdivisions (n) and (p) of
section 1210 of such law relating to tax exemptions imposed by resol-
ution in cities having a population of one million or more persons
(Part Z); to amend the tax law, in relation to allowing a reimburse-
ment of the petroleum business tax for highway diesel motor fuel used
in farm production (Part AA); to amend the tax law, in relation to
calculating the estate tax imposed under the tax rate table, clarify-
ing the phase out date for certain gift add backs and disallowing
deductions relating to intangible personal property for estates of
non-resident decedents; and to amend the tax law, in relation to
computation of estate tax (Part BB); intentionally omitted (Part CC);
to amend part Q of chapter 59 of the laws of 2013 amending the tax law
relating to serving an income execution with respect to individual tax
debtors without filing a warrant, in relation to the effectiveness
thereof (Part DD); intentionally omitted (Part EE); to amend chapter
266 of the laws of 1986 amending the civil practice law and rules and
other laws relating to malpractice and professional medical conduct;
and to amend chapter 63 of the laws of 2001 amending chapter 20 of the
laws of 2001 amending the military law and other laws relating to
making appropriations for the support of government, in relation to
extending certain provisions concerning the hospital excess liability
S. 4209 3
pool and requiring a tax clearance for doctors and dentists to be
eligible for such excess coverage (Part FF); to amend the public
authorities law and the tax law, in relation to authorizing clearance
of past-due tax liabilities for state or local authority grant appli-
cants (Part GG); to amend the tax law and the state finance law, in
relation to allowing the commissioner of taxation and finance to enter
into reciprocal tax collection agreements with other states (Part HH);
intentionally omitted (Part II); intentionally omitted (Part JJ);
intentionally omitted (Part KK); to amend the social services law, in
relation to the disclosure of certain information relating to a person
receiving public assistance to the commissioner of the department of
taxation and finance (Part LL); to amend the tax law, in relation to
capital awards to vendor tracks (Part MM); to amend the racing, pari-
mutuel wagering and breeding law, in relation to licenses for simul-
cast facilities, sums relating to track simulcast, simulcast of out-
of-state thoroughbred races, simulcasting of races run by out-of-state
harness tracks and distributions of wagers; to amend chapter 281 of
the laws of 1994 amending the racing, pari-mutuel wagering and breed-
ing law and other laws relating to simulcasting and 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 NN); to amend
the tax law and the penal law, in relation to video lottery gaming;
and providing for the repeal of such provisions upon expiration there-
of (Part OO); to amend the racing, pari-mutuel wagering and breeding
law, in relation to a franchised corporation (Part PP); intentionally
omitted (Part QQ); to amend the tax law, in relation to the credit for
certain alternative fuel vehicle refueling property and electric vehi-
cle recharging property (Part RR); to amend the public service law, in
relation to costs associated with the department of public service
(Part SS); to amend the tax law, in relation to the amount of credit
towards sales and compensating use taxes for vendors (Part TT); to
amend the tax law, in relation to simple personal income tax (Part
UU); to amend the civil practice law and rules, in relation to the
undertaking required during the pendency of a stay of enforcement of a
judgment against a participating or non-participating manufacturer
under the master settlement agreement (Part VV); to amend the tax law,
in relation to the stock transfer tax, and to repeal certain
provisions of the tax law relating thereto (Part WW); to amend chapter
912 of the laws of 1920 relating to the regulation of boxing, sparring
and wrestling, in relation to establishing protocols for combative
sports and authorizing mixed martial arts events in this state; to
amend the tax law, in relation to the imposition of a tax on the gross
receipts of any person holding any professional or amateur boxing,
sparring or wrestling match or exhibition, or professional combative
sports match or exhibition; and to amend the alcoholic beverage
control law, in relation to allowing matches or exhibitions on the
premises of certain licensees (Part XX); to amend the tax law, in
relation to the authority of counties to impose sales and compensating
use taxes pursuant to the authority of article 29 of such law; and to
repeal certain provisions of sections 1210 and 1224 and section 1210-E
of such law relating thereto (Part YY); to amend the tax law, in
relation to exempting from sales and compensating use taxes the
purchase of general aviation aircraft; and providing for the repeal of
S. 4209 4
certain provisions upon expiration thereof (Part ZZ); to amend the tax
law, in relation to adding the use of a vessel by the purchaser in
this state for not more than 20 days per calendar day to the list of
exemptions to the compensating use tax (Part AAA); to amend the tax
law, in relation to establishing a credit against income tax for the
rehabilitation of distressed commercial properties (Part BBB); to
amend the tax law, in relation to QEZE tax reduction credits (Part
CCC); to amend the tax law, in relation to providing for a sales tax
exemption for farm abstracts (Part DDD); to amend the tax law, in
relation to sales and compensating use taxes (Part EEE); to amend the
tax law, in relation to granting sales and compensating use tax
exemptions for certain tangible personal property and services used in
the operation of recreational skiing facilities (Part FFF); to amend
the tax law, in relation to the exemption of political subdivisions
from the imposition of the metropolitan commuter transportation mobil-
ity tax (Part GGG); to amend the tax law, in relation to the exemption
of libraries from the imposition of the metropolitan commuter trans-
portation mobility tax (Part HHH); to amend the tax law, in relation
to exempting certain prekindergarten special education programs from
the metropolitan commuter transportation mobility tax (Part III); to
amend the tax law, in relation to the definition of "allowable college
tuition expenses" and the tax credit allowed for such expenses (Part
JJJ); to amend the tax law, in relation to providing an asbestos reme-
diation tax credit (Part KKK); to amend the tax law and the state
finance law, in relation to the creation of the cigarette tax enforce-
ment account and repealing provisions of the administrative code of
the city of New York relating thereto (Part LLL); to amend the econom-
ic development law, in relation to veterans entrepreneurship assist-
ance (Part MMM); to amend the tax law, in relation to the empire state
film production credit (Part NNN); to amend the public housing law and
the tax law, in relation to providing certain tax credits for
construction or rehabilitation of middle-income housing (Part OOO); to
amend the tax law, in relation to real estate investment trusts (Part
PPP); to amend the tax law, in relation to establishing an elderly
residential emergency repair personal income tax credit (Part QQQ);
relating to sales tax in empire zones (Part RRR); to amend the tax
law, in relation to exempting from sales and use taxes certain tangi-
ble personal property or services (Part SSS); to amend the tax law, in
relation to the green building credit (Part TTT); to amend the tax
law, in relation to establishing a senior utility circuit breaker
personal income tax credit (Part UUU); to amend the general municipal
law and the municipal home rule law, in relation to establishing limi-
tations upon real property tax levies in cities with a population of
one million or more (Part VVV); to amend the racing, pari-mutuel
wagering and breeding law, in relation to authorizing the division of
state police to conduct qualification investigations for those apply-
ing for casino key employee licenses or gaming employee registrations
(Part WWW); to amend the racing, pari-mutuel wagering and breeding
law, in relation to out-of-state or out-of-country races, unclaimed
winnings, fast track betting, and account wagering; and repealing
certain provisions of such law relating thereto (Part XXX); to amend
the racing, pari-mutuel wagering and breeding law, in relation to the
New York Jockey Injury Compensation Fund, Inc. (Part YYY); to amend
the racing, pari-mutuel wagering and breeding law, in relation to
payments received by regional harness tracks for certain wagers (Part
ZZZ); to amend the tax law, in relation to vendor fees paid to vendor
S. 4209 5
tracks (Part AAAA); to amend the real property tax law, in relation to
rent increase exemptions for persons regardless of their age or disa-
bility status (Part BBBB); to amend the real property tax law, in
relation to authorizing a tax exemption for senior citizen tenants
residing in manufactured home parks in certain municipal corporations
and school districts (Part CCCC); to amend the real property tax law,
in relation to extending eligibility, for an additional three years,
for the exemption of certain new or substantially rehabilitated multi-
ple dwellings from local taxation (Part DDDD); to amend the tax law,
in relation to the state school tax reduction credit (Part EEEE); to
amend the tax law, in relation to reducing federal adjusted gross
income, for purposes of state personal income taxes, by the amount of
interest on indebtedness incurred for tuition and fees paid for under-
graduate education (Part FFFF); and to amend the state finance law and
the public housing law, in relation to establishing the public housing
revitalization fund; and to amend the New York city charter, in
relation to authorizing the New York city council to oversee the
activities of certain public authorities (Part GGGG)
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 2015-2016
state fiscal year. Each component is wholly contained within a Part
identified as Parts A through GGGG. The effective date for each partic-
ular provision contained within such Part is set forth in the last
section of such Part. Any provision in any section contained within a
Part, including the effective date of the Part, which makes a reference
to a section "of this act", when used in connection with that particular
component, shall be deemed to mean and refer to the corresponding
section of the Part in which it is found. Section three of this act sets
forth the general effective date of this act.
PART A
Intentionally Omitted
PART B
Section 1. Subdivision 1 of section 54-f of the state finance law, as
amended by section 1 of part EE of chapter 57 of the laws of 2010, 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 THREE HUNDRED
EIGHTY-NINE 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 liabilities imposed pursuant to the
authority granted the city by such section and other statutes authoriz-
ing 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] chap-
S. 4209 6
ter FIFTY-SEVEN of the laws of two thousand ten AND BY A CHAPTER OF THE
LAWS OF TWO THOUSAND FIFTEEN, 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 2 of part EE of chapter 57 of the laws of
2010, 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 FOURTEEN:
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 $16,803 PLUS 3.4% OF EXCESS
OVER $500,000
(B) For taxable years beginning after two thousand nine AND BEFORE TWO
THOUSAND FIFTEEN:
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 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]
(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 FOURTEEN:
S. 4209 7
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 $16,869 PLUS 3.4% OF EXCESS
OVER $500,000
(B) For taxable years beginning after two thousand nine AND BEFORE TWO
THOUSAND FIFTEEN:
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 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]
(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 FOURTEEN:
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
S. 4209 8
OVER $50,000 BUT NOT $1,497 PLUS 3.2% OF EXCESS
OVER $500,000 OVER $50,000
OVER $500,000 $16,891 PLUS 3.4%
OF EXCESS OVER $500,000
(B) For taxable years beginning after two thousand nine AND BEFORE TWO
THOUSAND FIFTEEN:
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 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 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 3
of part EE of chapter 57 of the laws of 2010, 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 FOURTEEN:
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 $16,803 PLUS 3.4% OF EXCESS
OVER $500,000
(B) For taxable years beginning after two thousand nine AND BEFORE TWO
THOUSAND FIFTEEN:
S. 4209 9
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 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]
(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 FOURTEEN:
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 $16,869 PLUS 3.4% OF EXCESS
OVER $500,000
(B) For taxable years beginning after two thousand nine AND BEFORE TWO
THOUSAND FIFTEEN:
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 ten:
S. 4209 10
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]
(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 FOURTEEN:
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 $16,891 PLUS 3.4% OF EXCESS
OVER $500,000
(B) For taxable years beginning after two thousand nine AND BEFORE TWO
THOUSAND FIFTEEN:
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 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
S. 4209 11
over $50,000 over $25,000
Over $50,000 $1,497 plus 3.2% of excess
over $50,000]
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 2015 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 2015 the with-
holding tables shall reflect as accurately as practicable the full
amount of tax year 2015 liability so that such amount is withheld by
December 31, 2015. Any such regulations to implement a change in with-
holding tables and methods for tax year 2015 shall be adopted and effec-
tive as soon as practicable and the commissioner may adopt such regu-
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 shall be imposed for failure to pay the estimated tax in
subsection (c) of section 685 of the tax law and subdivision (c) of
section 11-1785 of the administrative code of the city of New York 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 underpayment was created or increased by the amendments made by
this act, provided, however, that the taxpayer remits the amount of any
underpayment 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 C
Section 1. The opening paragraph of paragraph (f) of subdivision 3 of
section 425 of the real property tax law, as added by section 1 of part
B of chapter 59 of the laws of 2012, is amended to read as follows:
Compliance with state tax obligations. [The] A PROPERTY SHALL NOT BE
ELIGIBLE [property's eligibility] for the STAR exemption [must not be]
IF THE PROPERTY'S ELIGIBILITY HAS BEEN suspended pursuant to section one
hundred seventy-one-y of the tax law due to the past-due state tax
liabilities of one or more of its owners. Notwithstanding any provision
S. 4209 12
of law to the contrary, where a property's eligibility for a STAR
exemption has been suspended pursuant to such section, the following
provisions shall be applicable:
S 2. Paragraphs (h) and (i) of subdivision 2 and subdivision 7 of
section 171-y of the tax law, as added by section 2 of part B of chapter
59 of the laws of 2012, are amended to read as follows:
(h) [The procedures by which the department shall apply the amount of
a taxpayer's lost STAR benefits as an offset against the amount of that
taxpayer's past-due state tax liabilities.
(i)] Any other matter as the department shall deem necessary to carry
out the provisions of this section.
7. Activities to collect state tax liabilities undertaken by the
department pursuant to this section shall not in any way limit, restrict
or impair the department from exercising any other authority to collect
or enforce past-due state tax liabilities under any other applicable
provision of law. [The amount by which a taxpayer's property tax liabil-
ity increases as a result of the loss of the STAR exemption pursuant to
paragraph (f) of subdivision three of section four hundred twenty-five
of the real property tax law and this section shall be applied as an
offset against the amount of the taxpayer's past-due state tax liabil-
ity.] IF A TAXPAYER LOSES THE STAR EXEMPTION PURSUANT TO PARAGRAPH (F)
OF SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL
PROPERTY TAX LAW AND THIS SECTION, THE TAXPAYER SHALL LOSE ANY ENTITLE-
MENT OR CLAIM OF RIGHT TO THE STAR EXEMPTION FOR THE APPLICABLE YEAR.
S 3. Section 3 of part B of chapter 59 of the laws of 2012, amending
the real property tax law and the tax law relating to suspension of STAR
exemptions of property owned by persons with outstanding tax liabil-
ities, is amended to read as follows:
S 3. This act shall take effect immediately [and shall apply to the
administration of the STAR exemption authorized by section 425 of the
real property tax law for the 2013-2014, 2014-2015 and 2015-2016 school
years].
S 4. This act shall take effect immediately.
PART D
Intentionally Omitted
PART E
Section 1. Section 425 of the real property tax law is amended by
adding a new subdivision 15 to read as follows:
15. RECOUPMENT OF EXEMPTIONS BY COMMISSIONER. (A) GENERALLY. IF THE
COMMISSIONER SHOULD DETERMINE, BASED UPON DATA COLLECTED UNDER THE STAR
REGISTRATION PROGRAM, THAT PROPERTY IMPROPERLY RECEIVED THE BASIC STAR
EXEMPTION ON ONE OR MORE OF THE THREE PRECEDING ASSESSMENT ROLLS, THE
COMMISSIONER SHALL TREAT THE EXEMPTION AS AN IMPROPERLY GRANTED
EXEMPTION AND PROCEED IN THE MANNER PROVIDED BY THIS SUBDIVISION;
PROVIDED THAT FINAL ASSESSMENT ROLLS THAT WERE FILED PRIOR TO APRIL
FIRST, TWO THOUSAND ELEVEN SHALL NOT BE SUBJECT TO THE PROVISIONS OF
THIS SUBDIVISION.
(B) PROCEDURE. THE TAX SAVINGS ATTRIBUTABLE TO EACH SUCH IMPROPERLY
GRANTED EXEMPTION SHALL BE COLLECTED FROM THE OWNERS WHOSE PROPERTY
IMPROPERLY RECEIVED THE EXEMPTION FOR THE APPLICABLE YEAR, TOGETHER WITH
INTEREST AND A PENALTY AS SPECIFIED IN THIS SUBDIVISION, BY UTILIZING
S. 4209 13
ANY OF THE PROCEDURES FOR COLLECTION, LEVY, AND LIEN OF PERSONAL INCOME
TAX SET FORTH IN ARTICLE TWENTY-TWO OF THE TAX LAW, ANY OTHER RELEVANT
PROCEDURES REFERENCED WITHIN THE PROVISIONS OF THAT ARTICLE, AND ANY
OTHER LAW AS MAY BE APPLICABLE, SO FAR AS PRACTICABLE WHEN RECOUPING THE
EXEMPTION AMOUNT PURSUANT TO THIS SUBDIVISION, EXCEPT THAT:
(I) PRIOR TO DIRECTING THAT AN IMPROPERLY GRANTED EXEMPTION BE
RECOUPED PURSUANT TO THIS SUBDIVISION, THE COMMISSIONER SHALL PROVIDE
THE OWNERS WITH NOTICE AND AN OPPORTUNITY TO SHOW THE COMMISSIONER THAT
THE EXEMPTION WAS PROPERLY GRANTED. IF THE OWNERS FAIL TO RESPOND TO
SUCH NOTICE WITHIN FORTY-FIVE DAYS FROM THE MAILING THEREOF, OR IF THEIR
RESPONSE DOES NOT SHOW TO THE COMMISSIONER'S SATISFACTION THAT THE
ELIGIBILITY REQUIREMENTS WERE IN FACT SATISFIED, THE COMMISSIONER SHALL
PROCEED WITH THE RECOUPMENT OF THE IMPROPERLY GRANTED EXEMPTION IN
ACCORDANCE WITH THE PROVISIONS OF THIS SUBDIVISION; AND
(II) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (B) OF SUBDIVISION
SIX OF THIS SECTION, NEITHER AN ASSESSOR NOR A BOARD OF ASSESSMENT
REVIEW HAS THE AUTHORITY TO CONSIDER AN OBJECTION TO THE RECOUPMENT OF
AN EXEMPTION PURSUANT TO THIS SUBDIVISION, NOR MAY SUCH AN ACTION BE
REVIEWED IN A PROCEEDING TO REVIEW AN ASSESSMENT PURSUANT TO TITLE ONE
OR ONE-A OF ARTICLE SEVEN OF THIS CHAPTER. SUCH AN ACTION MAY ONLY BE
CHALLENGED BEFORE THE DEPARTMENT. IF AN OWNER IS DISSATISFIED WITH THE
DEPARTMENT'S FINAL DETERMINATION, THE OWNER MAY APPEAL THAT DETERMI-
NATION TO THE BOARD IN A FORM AND MANNER TO BE PRESCRIBED BY THE COMMIS-
SIONER. SUCH APPEAL SHALL BE FILED WITHIN FORTY-FIVE DAYS FROM THE ISSU-
ANCE OF THE DEPARTMENT'S FINAL DETERMINATION. IF DISSATISFIED WITH THE
BOARD'S DETERMINATION, THE OWNER MAY SEEK JUDICIAL REVIEW THEREOF PURSU-
ANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. THE
OWNER SHALL OTHERWISE HAVE NO RIGHT TO CHALLENGE SUCH FINAL DETERMI-
NATION IN A COURT ACTION, ADMINISTRATIVE PROCEEDING, INCLUDING BUT NOT
LIMITED TO AN ADMINISTRATIVE PROCEEDING PURSUANT TO ARTICLE FORTY OF THE
TAX LAW, OR ANY OTHER FORM OF LEGAL RECOURSE AGAINST THE COMMISSIONER,
THE DEPARTMENT, THE BOARD, THE ASSESSOR, OR ANY OTHER PERSON, STATE
AGENCY, OR LOCAL GOVERNMENT.
(C) THE AMOUNT TO BE RECOUPED FOR EACH IMPROPERLY RECEIVED EXEMPTION
SHALL HAVE INTEREST ADDED AT THE RATE PRESCRIBED BY SECTION NINE HUNDRED
TWENTY-FOUR-A OF THIS CHAPTER OR SUCH OTHER LAW AS MAY BE APPLICABLE FOR
EACH MONTH OR PORTION THEREOF SINCE THE LEVY OF SCHOOL TAXES UPON SUCH
ASSESSMENT ROLL. IN ADDITION, A PENALTY SHALL BE IMPOSED IN THE AMOUNT
OF EITHER FIVE HUNDRED DOLLARS OR TWENTY PERCENT OF THE IMPROPERLY
RECEIVED TAX SAVINGS, WHICHEVER IS GREATER, NOT TO EXCEED TWO THOUSAND
FIVE HUNDRED DOLLARS, PROVIDED THAT THE COMMISSIONER MAY WAIVE SUCH
PENALTY FOR GOOD CAUSE SHOWN.
(D) IN THE EVENT THAT A REVOCATION OF PRIOR EXEMPTION PURSUANT TO
SUBDIVISION TWELVE OF THIS SECTION OR A VOLUNTARY RENUNCIATION OF THE
STAR EXEMPTION PURSUANT TO SECTION FOUR HUNDRED NINETY-SIX OF THIS CHAP-
TER HAS OCCURRED, THE PROVISIONS OF THIS SUBDIVISION SHALL NOT BE APPLI-
CABLE TO THE EXEMPTIONS SO REVOKED OR VOLUNTARILY RENOUNCED.
S 2. Clause 10 of subparagraph (i) of paragraph 2 of subdivision e of
section 26-403 of the administrative code of the city of New York, as
amended by chapter 422 of the laws of 2010, is amended to read as
follows:
(10) Housing accommodations not occupied by the tenant, not including
subtenants or occupants, as his or her primary residence, as determined
by a court of competent jurisdiction. For the purposes of determining
primary residency, a tenant who is a victim of domestic violence, as
defined in section four hundred fifty-nine-a of the social services law,
S. 4209 14
who has left the unit because of such violence, and who asserts an
intent to return to the housing accommodation shall be deemed to be
occupying the unit as his or her primary residence. FOR PURPOSES OF
DETERMINING PRIMARY RESIDENCY, AS USED IN THIS CHAPTER, THE FAILURE TO
FILE A NEW YORK CITY RESIDENT INCOME TAX RETURN (SETTING FORTH THE HOUS-
ING ACCOMMODATION AS HIS OR HER RESIDENCE) BY AN INDIVIDUAL REQUIRED BY
LAW TO FILE SUCH A RETURN, SHALL RESULT IN A FINDING THAT THE TENANT
DOES NOT OCCUPY THE UNIT AS HIS OR HER PRIMARY RESIDENCE; PROVIDED,
HOWEVER, THAT THIS PROVISION SHALL NOT APPLY TO AN INDIVIDUAL WHO HAS
REQUESTED AN EXTENSION OF TIME FOR PAYMENT OF TAX OR WHERE ANY OTHER
FACTOR EXISTS WHICH WOULD EXCUSE THE TIMELY FILING OF THE RETURN;
PROVIDED FURTHER, THAT THE TIMELY FILING OF THE RETURN, ALONE, SHALL NOT
RESULT IN A PRESUMPTION THAT THE INDIVIDUAL DOES OCCUPY THE UNIT AS HIS
OR HER PRIMARY RESIDENCE. No action or proceeding shall be commenced
seeking to recover possession on the ground that a housing accommodation
is not occupied by the tenant as his or her primary residence unless the
owner or lessor shall have given thirty days notice to the tenant of his
or her intention to commence such action or proceeding on such grounds.
S 3. Subparagraph (f) of paragraph 1 of subdivision a of section
26-504 of the administrative code of the city of New York, as amended by
chapter 422 of the laws of 2010, is amended to read as follows:
(f) not occupied by the tenant, not including subtenants or occupants,
as his or her primary residence, as determined by a court of competent
jurisdiction, provided, however that no action or proceeding shall be
commenced seeking to recover possession on the ground that a housing
accommodation is not occupied by the tenant as his or her primary resi-
dence unless the owner or lessor shall have given thirty days notice to
the tenant of his or her intention to commence such action or proceeding
on such grounds. For the purposes of determining primary residency, a
tenant who is a victim of domestic violence, as defined in section four
hundred fifty-nine-a of the social services law, who has left the unit
because of such violence, and who asserts an intent to return to the
housing accommodation shall be deemed to be occupying the unit as his or
her primary residence. FOR PURPOSES OF DETERMINING PRIMARY RESIDENCY,
AS USED IN THIS CHAPTER, THE FAILURE TO FILE A NEW YORK CITY RESIDENT
INCOME TAX RETURN (SETTING FORTH THE HOUSING ACCOMMODATION AS HIS OR HER
RESIDENCE) BY AN INDIVIDUAL REQUIRED BY LAW TO FILE SUCH A RETURN, SHALL
RESULT IN A FINDING THAT THE TENANT DOES NOT OCCUPY THE UNIT AS HIS OR
HER PRIMARY RESIDENCE; PROVIDED, HOWEVER, THAT THIS PROVISION SHALL NOT
APPLY TO AN INDIVIDUAL WHO HAS REQUESTED AN EXTENSION OF TIME FOR
PAYMENT OF TAX OR WHERE ANY OTHER FACTOR EXISTS WHICH WOULD EXCUSE THE
TIMELY FILING OF A RETURN; PROVIDED FURTHER, THAT THE TIMELY FILING OF
THE RETURN, ALONE, SHALL NOT RESULT IN A PRESUMPTION THAT THE INDIVIDUAL
DOES OCCUPY THE UNIT AS HIS OR HER PRIMARY RESIDENCE. For the purposes
of this subparagraph where a housing accommodation is rented to a not-
for-profit hospital for residential use, affiliated subtenants author-
ized to use such accommodations by such hospital shall be deemed to be
tenants, or
S 4. Paragraph 11 of subdivision a of section 5 of section 4 of chap-
ter 576 of the laws of 1974, constituting the emergency tenant
protection act of nineteen seventy-four, as amended by chapter 422 of
the laws of 2010, is amended to read as follows:
(11) housing accommodations which are not occupied by the tenant, not
including subtenants or occupants, as his or her primary residence, as
determined by a court of competent jurisdiction. FOR PURPOSES OF DETER-
MINING PRIMARY RESIDENCY, AS USED IN THIS CHAPTER, THE FAILURE TO FILE A
S. 4209 15
NEW YORK STATE RESIDENT INCOME TAX RETURN (SETTING FORTH THE HOUSING
ACCOMMODATION AS HIS OR HER RESIDENCE) BY AN INDIVIDUAL REQUIRED BY LAW
TO FILE SUCH A RETURN, SHALL RESULT IN A FINDING THAT THE TENANT DOES
NOT OCCUPY THE UNIT AS HIS OR HER PRIMARY RESIDENCE; PROVIDED, HOWEVER,
THAT THIS PROVISION SHALL NOT APPLY TO AN INDIVIDUAL WHO HAS REQUESTED
AN EXTENSION OF TIME FOR PAYMENT OF TAX OR WHERE ANY OTHER FACTOR EXISTS
WHICH WOULD EXCUSE THE TIMELY FILING OF THE RETURN; PROVIDED FURTHER,
THAT THE TIMELY FILING OF THE RETURN, ALONE, SHALL NOT RESULT IN A
PRESUMPTION THAT THE INDIVIDUAL DOES OCCUPY THE UNIT AS HIS OR HER
PRIMARY RESIDENCE. For the purposes of determining primary residency, a
tenant who is a victim of domestic violence, as defined in section four
hundred fifty-nine-a of the social services law, who has left the unit
because of such violence, and who asserts an intent to return to the
housing accommodation shall be deemed to be occupying the unit as his or
her primary residence. For the purposes of this paragraph, where a hous-
ing accommodation is rented to a not-for-profit hospital for residential
use, affiliated subtenants authorized to use such accommodations by such
hospital shall be deemed to be tenants. No action or proceeding shall be
commenced seeking to recover possession on the ground that a housing
accommodation is not occupied by the tenant as his or her primary resi-
dence unless the owner or lessor shall have given thirty days notice to
the tenant of his or her intention to commence such action or proceeding
on such grounds.
S 5. The tax law is amended by adding a new section 171-z to read as
follows:
S 171-Z. VERIFICATION OF RESIDENCE FILING ADDRESS. (1) THE COMMISSION-
ER IS AUTHORIZED TO VERIFY TO OWNERS OF MULTIPLE DWELLINGS COVERED BY
THE CITY RENT AND REHABILITATION LAW, THE RENT STABILIZATION LAW OF
NINETEEN HUNDRED SIXTY-NINE AND/OR THE EMERGENCY TENANT PROTECTION ACT
OF NINETEEN SEVENTY-FOUR WHETHER OR NOT, IN A GIVEN CALENDAR YEAR, A NEW
YORK CITY OR NEW YORK STATE RESIDENT INCOME TAX RETURN WAS FILED BY AN
INDIVIDUAL WHO IS A TENANT IN THE OWNER'S MULTIPLE DWELLING AND, IF SO,
THE RESIDENCE ADDRESS WHICH IS SET FORTH ON THE TAX RETURN. SUCH
VERIFICATION SHALL BE IN WRITING AND SHALL BE CONSIDERED A CERTIFICATE
OR AFFIDAVIT FOR THE PURPOSES OF RULE FORTY-FIVE HUNDRED TWENTY OF THE
CIVIL PRACTICE LAW AND RULES.
(2) THE DEPARTMENT MAY CHARGE A REASONABLE FEE, TO BE DETERMINED BY
THE COMMISSIONER, IN PAYMENT TO THE DEPARTMENT FOR THE EXPENSE INCURRED
IN VERIFYING THE FILING AND RESIDENCE ADDRESS.
(3) ANY FINDING THAT A RECIPIENT OF A PUBLIC BENEFIT PURSUANT TO CITY
RENT AND REHABILITATION LAW DOES NOT MEET A RESIDENCY REQUIREMENT NECES-
SARY TO RECEIVE SUCH BENEFIT BASED UPON HIS OR HER PERSONAL INCOME TAX
FILING SHALL, WITHIN THIRTY DAYS OF SUCH FINDING, BE SUBJECT TO EVICTION
FROM ANY UNIT REQUIRING PRIMARY RESIDENCE FOR TENANCY AND SHALL BE
DISALLOWED TO RECEIVE ANY PUBLIC BENEFIT AUTHORIZED PURSUANT TO SECTIONS
26-403 AND 26-504 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK,
AND ANY BENEFIT PROVIDED UNDER THE EMERGENCY TENANT PROTECTION ACT OF
NINETEEN SEVENTY-FOUR FOR THE PERIOD OF ONE YEAR FROM THE DATE OF SUCH
FINDING.
(4) (A) UPON A FINDING PURSUANT TO SUBDIVISION THREE OF THIS SECTION,
A STATE OR MUNICIPAL AGENCY ADMINISTERING BENEFITS AUTHORIZED PURSUANT
TO SECTIONS 26-403 AND 26-504 OF THE ADMINISTRATIVE CODE OF THE CITY OF
NEW YORK, AND ANY BENEFIT PROVIDED UNDER THE EMERGENCY TENANT PROTECTION
ACT OF NINETEEN SEVENTY-FOUR, SHALL BE NOTIFIED WITHIN SEVEN DAYS OF
SUCH FINDING AND MAY IN ADDITION TO ENFORCING PROVISIONS UNDER SUBDIVI-
SION THREE IMPOSE A CIVIL PENALTY UPON THE RECIPIENT OF AN UNAUTHORIZED
S. 4209 16
BENEFIT BASED UPON THE AMOUNT OF TIME SUCH UNAUTHORIZED BENEFIT WAS
PROVIDED.
(B) ANY CIVIL PENALTY AUTHORIZED UNDER THIS SUBDIVISION SHALL BE
IMPOSED AS FOLLOWS: (I) FOR ONE TO FIVE YEARS OF UNAUTHORIZED RECEIPT,
FIVE THOUSAND DOLLARS; (II) FOR SIX TO TEN YEARS OF UNAUTHORIZED
RECEIPT, TEN THOUSAND DOLLARS; (III) FOR ELEVEN TO FIFTEEN YEARS OF
UNAUTHORIZED RECEIPT, FIFTEEN THOUSAND DOLLARS; (IV) FOR SIXTEEN TO
TWENTY YEARS OF RECEIPT, TWENTY THOUSAND DOLLARS; AND (V) FOR TWENTY-ONE
OR MORE YEARS OF RECEIPT, TWENTY-FIVE THOUSAND DOLLARS.
S 6. This act shall take effect immediately; provided that:
a. the amendment to section 26-403 of the city rent and rehabilitation
law made by section two of this act shall remain in full force and
effect only so long as the public emergency requiring the regulation and
control of residential rents and evictions continues, as provided in
subdivision 3 of section 1 of the local emergency housing rent control
act;
b. the amendment to section 26-504 of the rent stabilization law of
nineteen hundred sixty-nine made by section three of this act shall
expire on the same date as such law expires and shall not affect the
expiration of such law as provided under section 26-520 of such law; and
c. the amendment to section 5 of the emergency tenant protection act
of nineteen seventy-four made by section four of this act shall expire
on the same date as such act expires and shall not affect the expiration
of such act as provided in section 17 of chapter 576 of the laws of
1974, as amended.
PART F
Section 1. Subdivision 3 of section 97-rrr of the state finance law,
as amended by section 8 of part F of chapter 109 of the laws of 2006, is
amended to read as follows:
3. The monies in such fund shall be appropriated for school property
tax exemptions [and local property tax rebates] granted pursuant to the
real property tax law [and the tax law] and payable pursuant to section
[thirty-six hundred nine] THIRTY-SIX HUNDRED NINE-E of the education
law, AND for payments to the city of New York pursuant to section
fifty-four-f of this chapter[, and pursuant to section one hundred
seventy-eight of the tax law].
S 2. One-time relief for unenrolled registrants. (1) As used in this
section, the term "unenrolled registrant" means a person who purchased
or otherwise acquired a primary residence after the taxable status date
for the 2013 assessment roll and who registered that property with the
commissioner of taxation and finance in accordance with subdivision 14
of section 425 of the real property tax law on or before the taxable
status date for the 2014 assessment roll, but who failed to file an
application for the STAR exemption for that property in accordance with
subdivision 6 of section 425 of the real property tax law on or before
the taxable status date for the 2014 assessment roll.
(2) If the commissioner of taxation and finance is informed on or
before October 1, 2015, that an owner of property is an unenrolled
registrant, and if such commissioner finds that the unenrolled regis-
trant's property would have qualified for the STAR exemption authorized
by section 425 of the real property tax law on the 2014 assessment roll
if a completed application had been filed with the appropriate assessor
in a timely manner, then the commissioner of taxation and finance is
authorized to remit directly to the property owner or owners the tax
S. 4209 17
savings that the STAR exemption would have yielded if the STAR exemption
had been granted on the 2014 assessment roll. When remitting such
amount, the commissioner of taxation and finance shall advise the prop-
erty owner or owners that such payment is subject to recovery by such
commissioner if the property owner or owners do not apply for and quali-
fy for the STAR exemption on the 2015 assessment roll, or if it should
otherwise be found to have been erroneously remitted to such property
owner or owners.
(3) The amounts payable under this act shall be paid from the account
established for the payment of STAR benefits to late registrants pursu-
ant to subparagraph (iii) of paragraph (a) of subdivision 14 of section
425 of the real property tax law.
(4) The provisions of part 6 of article 22 of the tax law relating to
the collection of a tax imposed by such article that has been assessed
and remains unpaid shall apply to the recovery authorized by subdivision
two of this section of a payment found to have been erroneously made
pursuant to this act to an ineligible property owner or owners in the
same manner and with the same force and effect as if the language of
such article had been incorporated in full into this act except to the
extent that any provision of such article is either inconsistent with a
provision of this act or is not relevant to this act as determined by
the commissioner of taxation and finance. Furthermore, for purposes of
applying the provisions of part 6 of article 22 of the tax law, where
the terms "tax" and "taxes" appear in such article, such terms shall be
construed to mean "a payment or payments erroneously made pursuant to
this act to an ineligible property owner or owners".
S 3. This act shall take effect immediately.
PART G
Section 1. The real property tax law is amended by adding a new
section 1306-b to read as follows:
S 1306-B. NEW YORK PROPERTY TAX RELIEF CHECK PROGRAM. 1. TAX REBATES.
(A) FOR BASIC AND ENHANCED REBATES BEGINNING IN THE TWO THOUSAND
FIFTEEN--TWO THOUSAND SIXTEEN SCHOOL YEAR AND EACH YEAR THEREAFTER IF A
PARCEL IS ENTITLED TO THE BASIC OR ENHANCED STAR EXEMPTION AUTHORIZED BY
SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER, A LOCAL PROPERTY TAX
REBATE SHALL BE PROVIDED TO THE OWNER OR OWNERS OF SUCH PARCEL AS SHOWN
ON THE FINAL ASSESSMENT ROLL FOR SUCH YEAR, IN AN AMOUNT COMPUTED AS
PRESCRIBED BY THIS SECTION AND SECTION ONE HUNDRED SEVENTY-EIGHT OF THE
TAX LAW.
(B) NO TAX REBATE SHALL BE PROVIDED TO AN OWNER OR OWNERS PURSUANT TO
PARAGRAPH A OF THIS SUBDIVISION IF THE AMOUNT OF SUCH REBATE IS LESS
THAN OR EQUAL TO A CREDIT AUTHORIZED TO BE PROVIDED TO A TAX PAYER OF AN
INDEPENDENT OR DEPENDENT SCHOOL DISTRICT PURSUANT TO SUBSECTION (BBB) OF
SECTION SIX HUNDRED SIX OF THE TAX LAW OR IF SUCH CREDIT IS LESS THAN
TWENTY DOLLARS IN A SINGLE YEAR.
(C) AN INDEPENDENT SCHOOL DISTRICT THAT IS SUBJECT TO THE PROVISIONS
OF SECTION TWO THOUSAND TWENTY-THREE-A OF THE EDUCATION LAW MUST MEET
THE APPLICABLE REQUIREMENTS OF SECTION TWO THOUSAND TWENTY-THREE-B OF
THE EDUCATION LAW FOR THE TWO THOUSAND FIFTEEN--TWO THOUSAND SIXTEEN
SCHOOL YEAR TO RENDER ITS PROPERTY OWNERS ELIGIBLE FOR THE NEW YORK
PROPERTY TAX RELIEF CHECK PROGRAM PURSUANT TO THIS SECTION. FOR ALL
SCHOOL YEARS THEREAFTER, IN ORDER FOR AN INDEPENDENT SCHOOL DISTRICT TO
QUALIFY ITS PROPERTY OWNERS TO RECEIVE A REBATE PURSUANT TO THIS
S. 4209 18
SECTION, THE BUDGET SO ADOPTED SHALL NOT EXCEED THE TAX LEVY LIMIT
PRESCRIBED BY SECTION TWO THOUSAND TWENTY-THREE-A OF THE EDUCATION LAW.
(D) A CITY WITH A DEPENDENT SCHOOL DISTRICT THAT IS SUBJECT TO THE
PROVISIONS OF SECTION THREE-C OF THE GENERAL MUNICIPAL LAW AND ITS
DEPENDENT SCHOOL DISTRICT MUST JOINTLY COMPLY WITH THE REQUIREMENTS OF
SUBDIVISION TWO, AND EITHER SUBDIVISION THREE OR FOUR OF SECTION THREE-D
OF THE GENERAL MUNICIPAL LAW IN ORDER TO RENDER ITS PROPERTY OWNERS
ELIGIBLE FOR THE NEW YORK PROPERTY TAX RELIEF CHECK PROGRAM FOR A CITY
FISCAL YEAR BEGINNING IN TWO THOUSAND FIFTEEN PURSUANT TO THIS SECTION.
FOR ALL FISCAL YEARS THEREAFTER WHERE A REBATE WOULD BE AUTHORIZED, A
CITY WITH A DEPENDENT SCHOOL DISTRICT THAT IS SUBJECT TO THE PROVISIONS
OF SECTION THREE-C OR THREE-E OF THE GENERAL MUNICIPAL LAW MUST ADOPT A
BUDGET THAT DOES NOT EXCEED THE TAX LEVY LIMIT PRESCRIBED BY SUCH
SECTION IN ORDER TO RENDER ITS PROPERTY OWNERS ELIGIBLE FOR THE NEW YORK
PROPERTY TAX RELIEF CHECK PROGRAM.
(E) IT SHALL BE THE RESPONSIBILITY OF THE DEPARTMENT TO ISSUE SUCH TAX
REBATES TO SUCH OWNER OR OWNERS IN THE MANNER PROVIDED BY SECTION ONE
HUNDRED SEVENTY-EIGHT OF THE TAX LAW. NOTHING CONTAINED HEREIN SHALL BE
CONSTRUED AS PERMITTING PARTIAL OR INSTALLMENT PAYMENTS OF TAXES IN A
JURISDICTION WHICH HAS NOT AUTHORIZED THE SAME PURSUANT TO LAW. TO THE
EXTENT PRACTICABLE REBATES MADE TO AN OWNER OR OWNERS PURSUANT TO THIS
SECTION AND CREDITS PROVIDED TO THE SAME PURSUANT TO SUBSECTION (BBB) OF
SECTION SIX HUNDRED SIX OF THE TAX LAW SHALL BE DISBURSED IN COMBINA-
TION.
2. PROCEDURE. (A) ON OR BEFORE AUGUST FIFTEENTH, TWO THOUSAND FIFTEEN
AND EACH YEAR THEREAFTER, THE COMMISSIONER, OR HIS OR HER DESIGNEE,
SHALL CREATE A REPORT, IF SUCH REPORT IS DEEMED NECESSARY BY THE COMMIS-
SIONER TO ESTABLISH ELIGIBILITY OF AN OWNER OR OWNERS TO A REBATE UNDER
THIS SECTION, CONCERNING THOSE PARCELS WHICH HAVE BEEN GRANTED AN EXCEP-
TION AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER, OR
ON OR BEFORE JULY FIRST, TWO THOUSAND FIFTEEN AND EACH YEAR THEREAFTER,
IN THE CASE OF A CITY WITH A POPULATION OF ONE MILLION OR MORE, THE
COMMISSIONER OF FINANCE, OR HIS OR HER DESIGNEE, SHALL PROVIDE TO THE
COMMISSIONER OF TAXATION AND FINANCE A REPORT IN A MUTUALLY AGREEABLE
FORMAT CONCERNING THOSE PARCELS WHICH HAVE BEEN GRANTED AN EXEMPTION
AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER ON THE
ASSESSMENT ROLLS USED TO GENERATE THE SCHOOL TAX BILLS FOR THE TWO THOU-
SAND FIFTEEN--TWO THOUSAND SIXTEEN SCHOOL TAX YEAR AND FOR EACH YEAR
THEREAFTER; PROVIDED HOWEVER THE INFORMATION TO BE PROVIDED ON SUCH
REPORT SHALL BE OBTAINED FROM THE FINAL ASSESSMENT ROLL DATA FILES USED
TO GENERATE THE TWO THOUSAND FIFTEEN--TWO THOUSAND SIXTEEN SCHOOL TAX
BILLS AND EACH YEAR THEREAFTER, FILED WITH THE DEPARTMENT PURSUANT TO
SECTION FIFTEEN HUNDRED NINETY OF THIS CHAPTER ON OR BEFORE JULY THIR-
TY-FIRST OF SUCH YEAR. SUCH REPORT SHALL SET FORTH THE NAMES AND MAILING
ADDRESSES OF THE OWNER OR OWNERS OF SUCH PARCELS AS SHOWN ON SUCH
ASSESSMENT ROLL DATA FILES, THE IDENTIFICATION NUMBERS OF SUCH PARCELS
AS SHOWN ON SUCH ASSESSMENT ROLL DATA FILES, AND SUCH OTHER INFORMATION
IN THE POSSESSION OF THE DEPARTMENT, OR IN THE CASE OF A CITY WITH A
POPULATION OF ONE MILLION OR MORE, THE COMMISSIONER OF FINANCE, AS THE
COMMISSIONER MAY DEEM NECESSARY FOR THE EFFECTIVE ADMINISTRATION OF THIS
PROGRAM, INCLUDING INFORMATION REGARDING COOPERATIVE APARTMENT BUILDINGS
AND MOBILE HOME PARKS OR SIMILAR PROPERTY. IT SHALL BE THE RESPONSIBIL-
ITY OF THE ASSESSOR OR ASSESSORS OF EACH ASSESSING UNIT TO ENSURE THAT
THE NAMES AND MAILING ADDRESSES OF SUCH OWNER OR OWNERS ARE ACCURATELY
RECORDED ON SUCH ROLLS AND FILES TO THE BEST OF HIS OR HER ABILITY,
BASED UPON THE INFORMATION CONTAINED IN HIS OR HER OFFICE. NOTHING
S. 4209 19
CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED AS AFFECTING IN ANY WAY
THE VALIDITY OR ENFORCEABILITY OF A REAL PROPERTY TAX, OR THE APPLICA-
BILITY OF INTEREST OR PENALTIES WITH RESPECT THERETO, WHEN AN OWNER'S
NAME OR MAILING ADDRESS HAS NOT BEEN ACCURATELY RECORDED.
(B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
SION, WHERE AN ASSESSING UNIT CONTAINS ONE OR MORE PROPERTIES WHICH ARE
RECEIVING SUCH EXEMPTION IN RELATION TO A PRIOR YEAR ASSESSMENT ROLL
PURSUANT TO PARAGRAPH (D) OF SUBDIVISION SIX OF SECTION FOUR HUNDRED
TWENTY-FIVE OF THIS CHAPTER, OR CONTAINS ONE OR MORE PARCELS WITH
RESPECT TO WHICH SUCH EXEMPTION WAS DULY ADDED OR REMOVED AFTER THE
FILING OF THE FINAL ASSESSMENT ROLL PURSUANT TO THE PROVISIONS OF TITLE
THREE OF ARTICLE FIVE OF THIS CHAPTER, THE DEPARTMENT MAY REQUIRE THE
ASSESSOR TO FILE WITH IT, ON OR BEFORE JULY THIRTY-FIRST, TWO THOUSAND
FIFTEEN AND EACH YEAR THEREAFTER, OR SUCH LATER DATE AS SUCH OFFICE MAY
SPECIFY, A SUPPLEMENTAL REPORT RELATING TO SUCH PROPERTY OR PROPERTIES,
SO THAT INFORMATION PERTAINING TO THE OWNER OR OWNERS THEREOF MAY BE
INCLUDED IN THE REPORT TO BE MADE TO THE COMMISSIONER PURSUANT TO THIS
PARAGRAPH. WHEN ANY INFORMATION REQUIRED BY THIS PARAGRAPH IS RECEIVED
BY THE DEPARTMENT AFTER JULY THIRTY-FIRST, TWO THOUSAND FIFTEEN AND EACH
YEAR THEREAFTER, SUCH INFORMATION SHALL BE TRANSMITTED AS SOON AS
REASONABLY PRACTICABLE FOR USE IN ISSUING LOCAL PROPERTY TAX REBATES
PURSUANT TO SECTION ONE HUNDRED SEVENTY-EIGHT OF THE TAX LAW.
3. REBATE BASE. (A) THE DEPARTMENT SHALL CALCULATE THE REBATE BASE AS
PROVIDED HEREIN AND CERTIFY THE SAME NO LATER THAN JULY FIRST, TWO THOU-
SAND FIFTEEN.
(B) A REBATE GRANTED PURSUANT TO THIS SECTION:
(I) FOR THE TWO THOUSAND FIFTEEN--TWO THOUSAND SIXTEEN SCHOOL YEAR
SHALL BE COMPUTED BY DETERMINING THE EXEMPT AMOUNT ESTABLISHED FOR
PURPOSES OF THE BASIC OR ENHANCED STAR EXEMPTION FOR SUCH SCHOOL YEAR
AND MULTIPLYING THAT AMOUNT BY THIRTY-SIX AND ONE-HALF PERCENT.
(II) FOR THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL YEAR
SHALL BE COMPUTED BY DETERMINING THE EXEMPT AMOUNT ESTABLISHED FOR
PURPOSES OF THE BASIC OR ENHANCED STAR EXEMPTION FOR SUCH SCHOOL YEAR
AND MULTIPLYING THAT AMOUNT BY THIRTY-SEVEN AND ONE-HALF PERCENT.
(III) FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL
YEAR SHALL BE COMPUTED BY DETERMINING THE EXEMPT AMOUNT ESTABLISHED FOR
PURPOSES OF THE BASIC OR ENHANCED STAR EXEMPTION FOR SUCH SCHOOL YEAR
AND MULTIPLYING THAT AMOUNT BY FIFTY-FIVE PERCENT.
(IV) FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR,
AND EACH YEAR THEREAFTER, SHALL BE COMPUTED BY DETERMINING THE EXEMPT
AMOUNT ESTABLISHED FOR PURPOSES OF THE BASIC OR ENHANCED STAR EXEMPTION
FOR SUCH SCHOOL YEAR AND MULTIPLYING THAT AMOUNT BY FIFTY-FIVE PERCENT.
S 2. The tax law is amended by adding a new section 178 to read as
follows:
S 178. NEW YORK PROPERTY TAX RELIEF CHECK PROGRAM. 1. THE COMMISSION-
ER SHALL ISSUE THE LOCAL PROPERTY TAX REBATES AUTHORIZED BY SECTION
THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW. FOR PURPOSES OF
THIS SECTION THE REBATE SHALL BE CALCULATED USING THE FORMULA SET FORTH
IN SUBDIVISION THREE OF SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROP-
ERTY TAX LAW. PROVIDED, HOWEVER, SUCH REBATES SHALL NOT BE ISSUED IN ANY
YEAR IN WHICH AN APPROPRIATION TO PAY SUCH REBATES HAS NOT BEEN INCLUDED
IN THE ENACTED STATE BUDGET FOR SUCH YEAR.
2. ON OR BEFORE AUGUST FIFTEENTH, TWO THOUSAND FIFTEEN AND EACH YEAR
THEREAFTER, THE COMMISSIONER, OR HIS OR HER DESIGNEE, SHALL CREATE A
REPORT, IF SUCH A REPORT IS DEEMED NECESSARY BY THE COMMISSIONER TO
ESTABLISH ELIGIBILITY OF A REBATE PURSUANT TO SECTION THIRTEEN HUNDRED
S. 4209 20
SIX-B OF THE REAL PROPERTY TAX LAW, CONCERNING THOSE PARCELS WHICH
SATISFY THE CRITERIA SET FORTH IN SECTION THIRTEEN HUNDRED SIX-B OF THE
REAL PROPERTY TAX LAW, OR ON OR BEFORE JULY FIRST, TWO THOUSAND FIFTEEN
AND EACH YEAR THEREAFTER IN THE CASE OF A CITY WITH A POPULATION OF ONE
MILLION OR MORE, THE COMMISSIONER OF FINANCE, SHALL PROVIDE TO THE
COMMISSIONER A REPORT IN A MUTUALLY AGREEABLE FORMAT CONCERNING THOSE
PARCELS WHICH SATISFY THE CRITERIA SET FORTH IN SECTION THIRTEEN HUNDRED
SIX-B OF THE REAL PROPERTY TAX LAW.
3. THE COMMISSIONER IN CONSULTATION WITH THE COMMISSIONER OF FINANCE,
FOR A CITY WITH A POPULATION OF ONE MILLION OR MORE, IS AUTHORIZED TO
DEVELOP PROCEDURES NECESSARY TO PROVIDE FOR THE ISSUANCE OF LOCAL PROP-
ERTY TAX REBATES TO QUALIFYING PROPERTY OWNERS, AND THOSE QUALIFYING
PROPERTY OWNERS THAT DID NOT RECEIVE THEM INITIALLY. IF THE COMMISSION-
ER IS NOT SATISFIED THAT THE PROPERTY OWNER OR OWNERS ARE QUALIFIED FOR
THE LOCAL PROPERTY TAX REBATE, THE COMMISSIONER SHALL NOT ISSUE SUCH
REBATE.
4. BY DEPOSITING A REBATE ISSUED PURSUANT TO THIS SECTION AND AUTHOR-
IZED BY SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW, THE
PAYEE IS CERTIFYING THAT HE OR SHE IS THE PROPERTY OWNER, AND THAT THE
PRIMARY RESIDENCE OF SUCH PROPERTY OWNER OR OWNERS IS NOT SUBJECT TO ANY
DELINQUENT SCHOOL TAXES.
5. CONFIDENTIAL INFORMATION; DISCLOSURE PROHIBITION. INFORMATION
REGARDING REBATES ISSUED TO INDIVIDUALS SHALL NOT BE SUBJECT TO DISCLO-
SURE; INCLUDING NAMES, ADDRESSES, AND DOLLAR AMOUNTS OF REBATES.
S 3. Section 606 of the tax law is amended by adding a new subsection
(n-1) to read as follows:
(N-1) SCHOOL DISTRICT PROPERTY TAX CREDIT. (1) (A) IN ANY TAXABLE
YEAR IN WHICH TAXPAYERS ARE NOT ELIGIBLE TO RECEIVE REBATES PURSUANT TO
SECTION ONE HUNDRED SEVENTY-EIGHT OF THIS CHAPTER SOLELY BECAUSE AN
APPROPRIATION TO PAY SUCH REBATES WAS NOT INCLUDED IN THE ENACTED STATE
BUDGET, FOR SUCH YEAR, THE CREDIT ALLOWED BY THIS SUBSECTION SHALL
APPLY.
(B) NO CREDIT SHALL BE PROVIDED TO A TAXPAYER PURSUANT TO THIS SECTION
IF THE AMOUNT OF SUCH CREDIT IS LESS THAN OR EQUAL TO A CREDIT AUTHOR-
IZED TO BE PROVIDED TO A TAXPAYER OF AN INDEPENDENT OR DEPENDENT SCHOOL
DISTRICT PURSUANT TO SUBSECTION (BBB) OF THIS SECTION OR IF SUCH CREDIT
IS LESS THAN TWENTY DOLLARS IN A SINGLE YEAR.
(C) AN INDEPENDENT SCHOOL DISTRICT THAT IS SUBJECT TO THE PROVISIONS
OF SECTION TWO THOUSAND TWENTY-THREE-A OF THE EDUCATION LAW MUST MEET
THE APPLICABLE REQUIREMENTS OF SECTION TWO THOUSAND TWENTY-THREE-B OF
THE EDUCATION LAW FOR THE TWO THOUSAND FIFTEEN-TWO THOUSAND SIXTEEN
SCHOOL YEAR TO RENDER ITS TAXPAYERS ELIGIBLE FOR A CREDIT PURSUANT TO
THIS SECTION. FOR ALL SCHOOL YEARS THEREAFTER, IN ORDER FOR AN INDEPEND-
ENT SCHOOL DISTRICT TO QUALIFY ITS TAXPAYERS TO RECEIVE A CREDIT PURSU-
ANT TO THIS SECTION, THE BUDGET SO ADOPTED SHALL NOT EXCEED THE TAX LEVY
LIMIT PRESCRIBED BY SECTION TWO THOUSAND TWENTY-THREE-A OF THE EDUCATION
LAW.
(D) A CITY WITH A DEPENDENT SCHOOL DISTRICT THAT IS SUBJECT TO THE
PROVISIONS OF SECTION THREE-C OF THE GENERAL MUNICIPAL LAW AND ITS
DEPENDENT SCHOOL DISTRICT MUST JOINTLY COMPLY WITH THE REQUIREMENTS OF
SUBDIVISION TWO, AND SUBDIVISION THREE OR FOUR OF SECTION THREE-D OF THE
GENERAL MUNICIPAL LAW IN ORDER TO RENDER ITS TAXPAYERS ELIGIBLE FOR A
CREDIT AUTHORIZED PURSUANT TO THIS SECTION FOR A CITY FISCAL YEAR BEGIN-
NING IN TWO THOUSAND FIFTEEN. FOR ALL FISCAL YEARS THEREAFTER WHERE A
CREDIT UNDER THIS SECTION WOULD BE AUTHORIZED, A CITY WITH A DEPENDENT
SCHOOL DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF SECTION THREE-C OR
S. 4209 21
THREE-E OF THE GENERAL MUNICIPAL LAW MUST ADOPT A BUDGET THAT DOES NOT
EXCEED THE TAX LEVY LIMIT.
(2) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND FIFTEEN IF THE CREDIT IS APPLICABLE IN SUCH YEAR, A TAXPAYER SHALL
BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE IN AN AMOUNT
EQUAL TO THE REBATE CHECK CALCULATED PURSUANT TO SECTION ONE HUNDRED
SEVENTY-EIGHT OF THIS CHAPTER.
(3) 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.
(4) (A) TAXPAYERS WHO WOULD HAVE QUALIFIED FOR THE CREDIT UNDER THIS
SUBSECTION FOR TAXABLE YEAR TWO THOUSAND FOURTEEN, HAD SUCH CREDIT BEEN
AUTHORIZED IN SUCH TAXABLE YEAR, SHALL BE TREATED AS HAVING MADE A
PAYMENT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR SUCH TAXABLE YEAR IN
AN AMOUNT EQUAL TO SUCH CREDIT FOR SUCH TAXABLE YEAR. SUCH PAYMENT SHALL
BE TREATED AS AN OVERPAYMENT OF TAX TO BE REFUNDED AS SOON AS PRACTICA-
BLE, BUT NOT LONGER THAN FORTY-FIVE DAYS FROM FILING A CLAIM FOR A
REFUND, IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHT-
Y-SIX OF THIS ARTICLE, PROVIDED, HOWEVER THAT NO INTEREST SHALL BE PAID
THEREON. ALL QUALIFIED TAXPAYERS MAY SUBMIT A CLAIM FOR AN ADVANCE
PAYMENT OF SUCH REFUND ON FORMS PREPARED BY THE DEPARTMENT, PROVIDED
SUCH FORMS ARE FILED WITH THE DEPARTMENT ON OR BEFORE AUGUST
THIRTY-FIRST, TWO THOUSAND FIFTEEN.
(B) THE AMOUNT OF THE CREDIT WHICH IS ALLOWED UNDER THIS SUBSECTION
FOR THE TAXPAYER'S TAXABLE YEAR BEGINNING IN TWO THOUSAND FIFTEEN SHALL
BE REDUCED BY THE PAYMENTS MADE TO THE TAXPAYER UNDER THIS SUBSECTION.
ANY FAILURE TO SO REDUCE THE CREDIT SHALL BE TREATED AS ARISING OUT OF A
MATHEMATICAL OR CLERICAL ERROR AND ASSESSED ACCORDING TO SUBSECTION (D)
OF SECTION SIX HUNDRED EIGHTY-ONE OF THIS ARTICLE.
(C) ANY FAILURE TO APPLY FOR AN ADVANCE PAYMENT SHALL NOT IMPAIR A
TAXPAYER'S ABILITY TO APPLY FOR THE CREDIT UPON FILING THEIR RETURN FOR
SUCH TAX YEAR.
(5) IF THE COMMISSIONER DETERMINES IT TO BE NECESSARY FOR PROPER
ADMINISTRATION OF THE CREDIT ALLOWED UNDER THIS SUBSECTION, THE COUNTY
DIRECTOR OF REAL PROPERTY TAX SERVICES OF ANY COUNTY, OR IN THE CASE OF
A CITY WITH A POPULATION OF ONE MILLION OR MORE, THE COMMISSIONER OF
FINANCE, UPON THE REQUEST OF THE COMMISSIONER, SHALL FILE A REPORT WITH
THE DEPARTMENT IDENTIFYING ALL PARCELS IN THE COUNTY OR IN THE CITY ON
WHICH SCHOOL TAXES FOR THE PRIOR SCHOOL YEAR REMAINED UNPAID AS OF JUNE
THIRTIETH OF SUCH PRIOR SCHOOL YEAR, PROVIDED THAT PARCELS NOT RECEIVING
THE BASIC OR ENHANCED STAR EXEMPTION SHALL BE EXCLUDED FROM SUCH LIST.
SUCH COUNTY DIRECTOR SHALL OBTAIN FROM THE TAX COLLECTING OFFICERS AND
TAX ENFORCEMENT OFFICERS WITHIN THE COUNTY SUCH INFORMATION AS HE OR SHE
MAY NEED TO PREPARE SUCH LIST. SUCH LIST SHALL BE PREPARED IN A FORMAT
PRESCRIBED BY THE COMMISSIONER.
(6) IF THE SCHOOL PROPERTY TAXES TO WHICH THE CREDIT RELATES ARE NOT
PAID, THE CREDIT ALLOWED WITH RESPECT TO SUCH PROPERTY TAXES MUST BE
ADDED BACK IN THE TAX YEAR IN WHICH SUCH CREDIT WAS CLAIMED.
(7) ONLY ONE CREDIT PER RESIDENCE SHALL BE ALLOWED PER TAXABLE YEAR
UNDER THIS SUBSECTION. WHEN TWO OR MORE MEMBERS OF A RESIDENCE ARE ABLE
TO MEET THE QUALIFICATIONS FOR A QUALIFIED TAXPAYER, THE CREDIT SHALL BE
EQUALLY DIVIDED BETWEEN OR AMONG SUCH INDIVIDUALS. IN THE CASE OF SPOUS-
ES WHO FILE A JOINT FEDERAL RETURN BUT WHO ARE REQUIRED TO DETERMINE
THEIR NEW YORK TAXES SEPARATELY, THE CREDIT ALLOWED PURSUANT TO THIS
S. 4209 22
SUBSECTION MAY BE APPLIED AGAINST THE TAX OF EITHER OR DIVIDED BETWEEN
THEM AS THEY MAY ELECT.
S 4. The opening paragraph of paragraph 2 of subsection (bbb) of
section 606 of the tax law, as added by section 1 of part FF of chapter
59 of the laws of 2014, is amended to read as follows:
An individual taxpayer who meets the eligibility standards set forth
in paragraph three of this subsection and whose primary residence is
located in a taxing jurisdiction that has a freeze-compliant budget for
the fiscal year starting in two thousand fourteen, two thousand fifteen
or two thousand sixteen, whichever is applicable, shall be allowed a
credit against the taxes imposed by this article. HOWEVER, THAT IN TWO
THOUSAND FIFTEEN NO CREDIT WILL BE PROVIDED UNDER THIS SECTION AS A
CREDIT ON TAXES IMPOSED ON BEHALF OF AN INDEPENDENT OR DEPENDENT SCHOOL
DISTRICT, IF AN AMOUNT GREATER THAN SUCH CREDIT WOULD BE AUTHORIZED TO
BE RECEIVED BY A PROPERTY OWNER OR OWNERS IN THE FORM OF A REBATE PURSU-
ANT TO SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW OR TO
BE RECEIVED IN THE FORM OR A CREDIT PURSUANT TO SUBSECTION (N-1) OF THIS
SECTION. Subject to the provisions of paragraph six of this subsection,
such credit shall be determined as follows:
S 5. Paragraph 4 of subsection (bbb) of section 606 of the tax law, as
added by section 1 of part FF of chapter 59 of the laws of 2014, is
amended to read as follows:
(4) For each year this credit is allowed, the commissioner shall
determine the taxpayer's eligibility for this credit utilizing the
information available to the commissioner. When the commissioner has
determined a taxpayer to be eligible for this credit, the commissioner
shall advance a payment of the amount determined in accordance with this
subsection. HOWEVER, THAT IN TWO THOUSAND FIFTEEN NO CREDIT WILL BE
PROVIDED UNDER THIS SECTION AS A CREDIT ON TAXES IMPOSED ON BEHALF OF AN
INDEPENDENT OR DEPENDENT SCHOOL DISTRICT, IF AN AMOUNT GREATER THAN SUCH
CREDIT WOULD BE AUTHORIZED TO BE RECEIVED BY A PROPERTY OWNER OR OWNERS
IN THE FORM OF A REBATE PURSUANT TO SECTION THIRTEEN HUNDRED SIX-B OF
THE REAL PROPERTY TAX LAW OR TO BE RECEIVED IN THE FORM OR A CREDIT
PURSUANT TO SUBSECTION (N-1) OF THIS SECTION.
The taxpayer shall not apply for such credit in conjunction with the
filing of his or her return. A taxpayer who has failed to receive an
advance payment that he or she believes was due to him or her, or who
has received an advance payment that he or she believes is less than the
amount that was due to him or her, may request payment of the claimed
deficiency in a manner prescribed by the commissioner.
S 6. The opening paragraph of section 2023-b of the education law, as
added by section 2 of part FF of chapter 59 of the laws of 2014, is
amended to read as follows:
Certification of compliance with property tax freeze, NEW YORK PROPER-
TY TAX RELIEF CHECK PROGRAM OR THE SCHOOL DISTRICT PROPERTY TAX CREDIT
requirements. A school district that is subject to the provisions of
section two thousand twenty-three-a of this part must comply with the
requirements of subdivision two of this section in order to render its
taxpayers eligible for the real property tax freeze credit authorized by
subsection (bbb) of section six hundred six of the tax law for a fiscal
year starting in two thousand fourteen. The property tax cuts will be
extended for a second year, A NEW YORK PROPERTY TAX RELIEF CHECK WILL BE
PROVIDED PURSUANT TO SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY
TAX LAW OR A TAX CREDIT WILL BE PROVIDED PURSUANT TO SUBSECTION N-1 OF
SECTION SIX HUNDRED SIX OF THE TAX LAW in jurisdictions which comply
with the tax cap and have a state approved government efficiency plan
S. 4209 23
which demonstrate three year savings and efficiencies of at least one
percent per year from shared services, cooperation agreements and/or
mergers or efficiencies. The director of the budget shall consider past
efficiencies, shared services and reforms in their approval process.
While localities may offer a variety of approaches it is anticipated
that the county government or board of cooperative educational services
will convene and facilitate a process and submit a county wide or board
of cooperative educational services region wide plan for approval. A
school district that is subject to the provisions of section two thou-
sand twenty-three-a of this part must comply with the requirements of
subdivision two and either subdivision three or subdivision four of this
section in order to render its taxpayers eligible for the real property
tax freeze credit authorized by subsection (bbb) of section six hundred
six of the tax law for a fiscal year starting in two thousand fifteen.
S 7. Paragraph b of subdivision 2 of section 2023-b of the education
law, as added by section 2 of part FF of chapter 59 of the laws of 2014,
is amended to read as follows:
b. In order for such certification to give rise to a real property tax
freeze credit under subsection (bbb) of section six hundred six of the
tax law, A NEW YORK PROPERTY TAX RELIEF CHECK PURSUANT TO SECTION THIR-
TEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW OR A TAX CREDIT PURSUANT
TO SUBSECTION (N-1) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, such
certification shall be made no later than the twenty-first day of the
fiscal year to which it applies.
S 8. The opening paragraph of section 3-d of the general municipal
law, as added by section 3 of part FF of chapter 59 of the laws of 2014,
is amended to read as follows:
Certification of compliance with property tax freeze, THE NEW YORK
PROPERTY TAX RELIEF CHECK PROGRAM OR THE SCHOOL DISTRICT PROPERTY TAX
CREDIT requirements. A municipal corporation or an independent special
district that is subject to the provisions of section three-c of this
article must comply with the requirements of subdivision two of this
section in order to render its taxpayers eligible for the real property
tax freeze credit authorized by subsection (bbb) of section six hundred
six of the tax law for a fiscal year starting in two thousand fifteen.
The property tax cuts will be extended for a second year OR AN AUTHOR-
IZED REBATE OR CREDIT WILL BE PROVIDED in jurisdictions which comply
with the tax cap and have a state approved government efficiency plan
which demonstrate three year savings and efficiencies of at least one
percent per year from shared services, cooperation agreements and/or
mergers or efficiencies. The director of the budget shall consider past
efficiencies, shared services and reforms in their approval process.
While localities may offer a variety of approaches it is anticipated
that the county government or board of cooperative educational services
will convene and facilitate a process and submit a county wide or board
of cooperative educational services region wide plan for approval. A
municipal corporation or an independent special district that is subject
to the provisions of section three-c of this article must comply with
the requirements of subdivision two and either subdivision three or
subdivision four of this section in order to render its taxpayers eligi-
ble for the real property tax freeze credit authorized by subsection
(bbb) of section six hundred six of the tax law for a fiscal year start-
ing in two thousand sixteen. Provided however, that a city with a
dependent school district must comply with the requirements of subdivi-
sion two of this section in order to render its taxpayers eligible for
the real property tax freeze credit authorized by subsection (bbb) of
S. 4209 24
section six hundred six of the tax law for a fiscal year starting in two
thousand fourteen and comply with the requirements of subdivision two of
this section, and both the city and its dependent school district must
jointly comply with the requirements of subdivision three or subdivision
four of this section, in order to render its taxpayers eligible for the
real property tax freeze credit authorized by subsection (bbb) of
section six hundred six of the tax law, FOR THE NEW YORK PROPERTY TAX
RELIEF CHECK AUTHORIZED BY SECTION THIRTEEN HUNDRED SIX-B OF THE REAL
PROPERTY TAX LAW OR THE SCHOOL DISTRICT PROPERTY TAX CREDIT PURSUANT TO
SUBSECTION (N-1) OF SECTION SIX HUNDRED SIX OF THE TAX LAW for a fiscal
year starting in two thousand fifteen or two thousand sixteen.
S 9. Paragraph (b) of subdivision 2 of section 3-d of the general
municipal law, as added by section 3 of part FF of chapter 59 of the
laws of 2014, is amended to read as follows:
(b) In order for such certification to give rise to a real property
tax freeze credit under subsection (bbb) of section six hundred six of
the tax law, A NEW YORK PROPERTY TAX RELIEF CHECK PURSUANT TO SECTION
THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW OR THE SCHOOL
DISTRICT PROPERTY TAX CREDIT PURSUANT TO SUBSECTION (N-1) OF SECTION SIX
HUNDRED SIX OF THE TAX LAW, such certification shall be made no later
than the twenty-first day of the fiscal year to which it applies.
S 10. This act shall take effect immediately.
PART H
Section 1. Subsection (g) of section 615 of the tax law, as amended by
section 1 of part D of chapter 59 of the laws of 2013, is amended 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 nine and before two thousand [sixteen]
EIGHTEEN. With respect to an individual whose New York adjusted gross
income is over one 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 in two thousand nine or after
two thousand [fifteen] SEVENTEEN.
(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 [sixteen] EIGHTEEN.
S 2. Subdivision (g) of section 11-1715 of the administrative code of
the city of New York, as amended by section 2 of part D of chapter 59 of
the laws of 2013, is amended 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 nine and before two thousand [sixteen]
EIGHTEEN. With respect to an individual whose New York adjusted gross
S. 4209 25
income is over one 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 in two thousand nine or after
two thousand [fifteen] SEVENTEEN.
(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 [sixteen] EIGHTEEN.
S 3. This act shall take effect immediately.
PART I
Section 1. Paragraph 41 of subsection (c) of section 612 of the tax
law, as added by section 1 of part KK of chapter 59 of the laws of 2014,
is amended to read as follows:
(41) The amount of any award paid to a volunteer firefighter or volun-
teer ambulance worker from a length of service defined contribution plan
or defined benefit plan as provided for in articles eleven-A, eleven-AA,
eleven-AAA and eleven-AAAA of the general municipal law, to the extent
that such award is includable in gross income for federal income tax
purposes; provided, however, that such award is not distributed in the
form of a lump sum distribution, as defined in subparagraph [(A)] (D) of
paragraph four of subsection (e) of section four hundred two of the
internal revenue code and taxed under section six hundred three of this
article; and provided, further, that such award is not distributed to a
taxpayer who has not attained the age of fifty-nine and one-half years.
S 2. Paragraph 37 of subdivision (c) of section 11-1712 of the admin-
istrative code of the city of New York, as added by section 2 of part KK
of chapter 59 of the laws of 2014, is amended to read as follows:
(37) The amount of any award paid to a volunteer firefighter or volun-
teer ambulance worker from a length of service defined contribution plan
or defined benefit plan as provided for in articles eleven-A, eleven-AA,
eleven-AAA and eleven-AAAA of the general municipal law, to the extent
that such award is includable in gross income for federal income tax
purposes; provided, however, that such award is not distributed in the
form of a lump sum distribution, as defined in subparagraph [(A)] (D) of
paragraph four of subsection (e) of section four hundred two of the
internal revenue code and taxed under section six hundred three of the
tax law; and provided, further, that such award is not distributed to a
taxpayer who has not attained the age of fifty-nine and one-half years.
S 3. Paragraph 3-a of subsection (c) of section 612 of the tax law, as
amended by chapter 760 of the laws of 1992, is amended to read as
follows:
(3-a) Pensions and annuities received by an individual who has
attained the age of fifty-nine and one-half, not otherwise excluded
pursuant to paragraph three of this subsection, to the extent includible
in gross income for federal income tax purposes, but not in excess of
twenty thousand dollars, which are periodic payments attributable to
personal services performed by such individual prior to his retirement
from employment, which arise (i) from an employer-employee relationship
or (ii) from contributions to a retirement plan which are deductible for
federal income tax purposes. However, the term "pensions and annuities"
shall also include distributions received by an individual who has
S. 4209 26
attained the age of fifty-nine and one-half from an individual retire-
ment account or an individual retirement annuity, as defined in section
four hundred eight of the internal revenue code, and distributions
received by an individual who has attained the age of fifty-nine and
one-half from self-employed individual and owner-employee retirement
plans which qualify under section four hundred one of the internal
revenue code, whether or not the payments are periodic in nature. Never-
theless, the term "pensions and annuities" shall not include any lump
sum distribution, as defined in subparagraph [(A)] (D) of paragraph four
of subsection (e) of section four hundred two of the internal revenue
code and taxed under section six hundred three of this article. Where a
husband and wife file a joint state personal income tax return, the
modification provided for in this paragraph shall be computed as if they
were filing separate state personal income tax returns. Where a payment
would otherwise come within the meaning of the term "pensions and annui-
ties" as set forth in this paragraph, except that such individual is
deceased, such payment shall, nevertheless, be treated as a pension or
annuity for purposes of this paragraph if such payment is received by
such individual's beneficiary.
S 4. Subparagraph (B) of paragraph 1 of subsection (e-1) of section
606 of the tax law, as added by section 2 of part K of chapter 59 of the
laws of 2014, is amended to read as follows:
(B) "Household" or "members of the household" means a qualified
taxpayer and all other persons, not necessarily related, who have the
same residence and share its furnishings, facilities and accommodations.
Such terms shall not include a tenant, subtenant, roomer or boarder who
is not related to the qualified taxpayer in any degree specified in
[paragraphs one through eight of subsection (a)] SUBPARAGRAPHS (A)
THROUGH (G) OF PARAGRAPH TWO OF SUBSECTION (D) of section one hundred
fifty-two of the internal revenue code. Provided, however, no person may
be a member of more than one household at one time.
S 5. Subparagraph (D) of paragraph 1 of subsection (e-1) of section
606 of the tax law, as added by section 2 of part K of chapter 59 of the
laws of 2014, is amended to read as follows:
(D) "Residence" means a dwelling in this state, IN A CITY WITH A POPU-
LATION OF OVER ONE MILLION, owned or rented by the taxpayer, and so much
of the land abutting it, not exceeding one acre, 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, and 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 paragraph (g) of
subdivision twelve of section one hundred two of the real property tax
law.
S 6. Subparagraph (B) of paragraph 1 of subsection (e) of section 606
of the tax law, as amended by chapter 28 of the laws of 1987, is amended
to read as follows:
(B) "Household" or "members of the household" means a qualified
taxpayer and all other persons, not necessarily related, who have the
same residence and share its furnishings, facilities and accommodations.
Such terms shall not include a tenant, subtenant, roomer or boarder who
is not related to the qualified taxpayer in any degree specified in
[paragraphs one through eight of subsection (a)] SUBPARAGRAPHS (A)
THROUGH (G) OF PARAGRAPH TWO OF SUBSECTION (D) of section one hundred
fifty-two of the internal revenue code. Provided, however, no person may
be a member of more than one household at one time.
S. 4209 27
S 7. Paragraph 1 of subsection (b) of section 806 of the tax law, as
added by section 2 of part DD of chapter 59 of the laws of 2014, is
amended to read as follows:
(1) The commissioner may require the filing of a combined return
which, in addition to the return provided for in subsection (b) of
section eight hundred four of this article, may also include any of the
returns required to be filed by a [resident individual of New York
state] TAXPAYER pursuant to the provisions of section six hundred
fifty-one of this chapter and which may be required to be filed by such
[individual] TAXPAYER pursuant to any local law enacted pursuant to the
authority of article thirty, thirty-A or thirty-B of this chapter.
S 8. Paragraph 1 and clause (ii) of subparagraph (B) of paragraph 2 of
subsection (xx) of section 606 of the tax law, as added by section 4 of
part R of chapter 59 of the laws of 2014, are amended to read as
follows:
(1) A qualified New York manufacturer will be allowed a credit equal
to twenty percent of the real property tax it paid during the taxable
year for real property owned by such manufacturer in New York which was
principally used during the taxable year for manufacturing to the extent
not deducted in computing [federal] NEW YORK adjusted gross income. This
credit will not be allowed if the real property taxes that are the basis
for this credit are included in the calculation of another credit
claimed by the taxpayer.
(ii) In addition, the term real property tax includes taxes paid by
the taxpayer upon real property principally used during the taxable year
by the taxpayer in manufacturing where the taxpayer leases such real
property from an unrelated third party if the following conditions are
satisfied: (I) the tax must be paid by the taxpayer as lessee pursuant
to explicit requirements in a written lease, and (II) the taxpayer as
lessee has paid such taxes directly to the taxing authority and has
received a written receipt for payment of taxes from the taxing authori-
ty. In the case of a [combined group that constitutes a qualified New
York manufacturer] TAXPAYER THAT, DURING THE TAXABLE YEAR, IS PRINCIPAL-
LY ENGAGED IN THE PRODUCTION OF GOODS BY FARMING, AGRICULTURE, HORTICUL-
TURE, FLORICULTURE, VITICULTURE, OR COMMERCIAL FISHING, THE TAXPAYER IS
ELIGIBLE IF THE TAXPAYER SATISFIES the conditions in the preceding
sentence [are satisfied if one corporation in the combined group is the
lessee and another corporation in the combined group makes the payments
to the taxing authority] AND THE TAXPAYER LEASES SUCH REAL PROPERTY FROM
A RELATED OR UNRELATED PARTY.
S 9. Subsection (yy) of section 606 of the tax law, as added by
section 4 of part T of chapter 59 of the laws of 2014, is amended to
read as follows:
(yy) The tax-free NY area excise tax on telecommunication services
credit. A taxpayer that is a business or owner of a business that is
located in a tax-free NY area approved pursuant to article twenty-one of
the economic development law shall be allowed a credit equal to the
excise tax on telecommunication services imposed by section one hundred
eighty-six-e of this chapter and passed through to such business during
the taxable year to the extent not otherwise deducted in computing
[federal] NEW YORK adjusted gross income. This credit may be claimed
only where any tax imposed by such section one hundred eighty-six-e has
been separately stated on a bill from the provider of telecommunication
services and paid by such taxpayer with respect to such services
rendered within a tax-free NY area during the taxable year. If the
amount of the credit allowed under this subsection for any taxable year
S. 4209 28
exceeds the taxpayer's tax for such year, the excess will 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 will be paid thereon.
S 10. Subparagraph (i) of paragraph 2 of subdivision (b) and subdivi-
sion (d) of section 25-b of the labor law, as added by section 1 of part
MM of chapter 59 of the laws of 2014, are amended to read as follows:
(i) who is deemed to have a developmental disability, as that term is
defined in subdivision twenty-two of section 1.03 of the mental hygiene
law and who is certified by the education department or the office for
people with developmental disabilities[:
(A)] as a person with a disability which constitutes or results in a
substantial handicap to employment; and
[(B) as a person having completed or as receiving services under an
individualized written rehabilitation plan approved by the education
department or other state agency responsible for providing vocational
rehabilitation services to such individual; and]
(d) To participate in the [developmentally disabled works] WORKERS
WITH DISABILITIES tax credit program, an employer must submit an appli-
cation (in a form prescribed by the commissioner) to the commissioner
[no later than November thirtieth of the prior year]. The commissioner
shall establish guidelines that specify requirements for employers to
participate in the program including criteria for certifying qualified
employees. Any regulations that the commissioner determines are neces-
sary may be adopted on an emergency basis notwithstanding anything to
the contrary in section two hundred two of the state administrative
procedure act. Such requirements may include the types of industries
that the employers are engaged in.
S 11. This act shall take effect immediately, provided, however that:
(i) sections one and two of this act shall be deemed to have been in
full force and effect on and after the effective date of part KK of
chapter 59 of the laws of 2014;
(ii) sections four and five of this act shall be deemed to have been
in full force and effect on and after the effective date of part K of
chapter 59 of the laws of 2014, provided, however, that the amendments
to subsection (e-1) of section 606 of the tax law made by sections four
and five of this act shall not affect the repeal of such subsection and
shall be deemed repealed therewith;
(iii) section seven of this act shall be deemed to have been in full
force and effect on and after the effective date of part DD of chapter
59 of the laws of 2014;
(iv) section eight of this act shall be deemed to have been in full
force and effect on and after the effective date of part R of chapter 59
of the laws of 2014;
(v) section nine of this act shall be deemed to have been in full
force and effect on and after the effective date of part T of chapter 59
of the laws of 2014;
(vi) section ten of this act shall be deemed to have been in full
force and effect on and after the effective date of part MM of chapter
59 of the laws of 2014; and
(vii) the amendments to section 25-b of the labor law made by section
ten of this act, shall not affect the repeal of such section and shall
be deemed repealed therewith.
PART J
S. 4209 29
Section 1. Section 9 of part V of chapter 62 of the laws of 2006,
amending the tax law relating to the empire state commercial production
tax credit, is REPEALED.
S 2. Subdivision (c) of section 28 of the tax law, as amended by
section 45 of part A of chapter 59 of the laws of 2014, is relettered
subdivision (d) and a new subdivision (c) is added to read as follows:
(C) THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL SUBMIT, ON OR BEFORE
DECEMBER FIRST OF EACH YEAR, TO THE GOVERNOR, THE DIRECTOR OF THE DIVI-
SION OF THE BUDGET, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE
SPEAKER OF THE ASSEMBLY AN ANNUAL REPORT INCLUDING, BUT NOT LIMITED TO,
THE FOLLOWING INFORMATION REGARDING THE PREVIOUS CALENDAR YEAR:
(1) THE TOTAL DOLLAR AMOUNT OF CREDITS ALLOCATED, THE NAME AND ADDRESS
OF EACH QUALIFIED COMMERCIAL PRODUCTION COMPANY ALLOCATED CREDITS UNDER
THIS SECTION, THE TOTAL AMOUNT OF CREDITS ALLOCATED TO EACH QUALIFIED
COMMERCIAL PRODUCTION COMPANY, THE TOTAL AMOUNT OF QUALIFIED PRODUCTION
COSTS AND PRODUCTION COSTS FOR EACH QUALIFIED COMMERCIAL PRODUCTION
COMPANY, AND THE ESTIMATED NUMBER OF EMPLOYEES, CREDIT-ELIGIBLE MAN
HOURS, AND CREDIT-ELIGIBLE WAGES ASSOCIATED WITH EACH QUALIFIED COMMER-
CIAL PRODUCTION COMPANY ALLOCATED CREDITS UNDER THIS SECTION;
(2) FOR QUALIFIED COMMERCIAL PRODUCTION COMPANIES THAT WERE ALLOCATED
CREDIT PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH TWO OF SUBDIVISION (A)
OF THIS SECTION: THE NAME AND ADDRESS OF EACH QUALIFIED COMMERCIAL
PRODUCTION COMPANY, THE TOTAL DOLLAR AMOUNT OF CREDITS ALLOCATED, THE
TOTAL AMOUNT OF CREDITS ALLOCATED TO EACH QUALIFIED COMMERCIAL
PRODUCTION COMPANY, TOTAL QUALIFIED PRODUCTION COSTS AND PRODUCTION
COSTS FOR EACH QUALIFIED PRODUCTION COMPANY, AND THE ESTIMATED NUMBER OF
EMPLOYEES, CREDIT-ELIGIBLE MAN HOURS, AND CREDIT-ELIGIBLE WAGES ASSOCI-
ATED WITH EACH QUALIFIED COMMERCIAL PRODUCTION COMPANY THAT FILMED OR
RECORDED A QUALIFIED COMMERCIAL WITHIN THE DISTRICT;
(3) FOR QUALIFIED COMMERCIAL PRODUCTION COMPANIES THAT WERE ALLOCATED
CREDIT PURSUANT TO SUBPARAGRAPH (III) OF PARAGRAPH TWO OF SUBDIVISION
(A) OF THIS SECTION: THE NAME AND ADDRESS OF EACH QUALIFIED COMMERCIAL
PRODUCTION COMPANY, THE TOTAL DOLLAR AMOUNT OF CREDITS ALLOCATED, THE
TOTAL AMOUNT OF CREDITS ALLOCATED TO EACH QUALIFIED COMMERCIAL
PRODUCTION COMPANY, TOTAL QUALIFIED PRODUCTION COSTS AND PRODUCTION
COSTS FOR EACH QUALIFIED PRODUCTION COMPANY, AND THE ESTIMATED NUMBER OF
EMPLOYEES, CREDIT-ELIGIBLE MAN HOURS, AND CREDIT-ELIGIBLE WAGES ASSOCI-
ATED WITH EACH QUALIFIED COMMERCIAL PRODUCTION COMPANY THAT FILMED OR
RECORDED A QUALIFIED COMMERCIAL OUTSIDE THE DISTRICT; AND
(4) THE AMOUNT OF CREDITS REALLOCATED TO ALL ELIGIBLE QUALIFIED
COMMERCIAL PRODUCTION COMPANIES PURSUANT TO SUBPARAGRAPH (III) OF PARA-
GRAPH TWO OF SUBDIVISION (A) OF THIS SECTION.
(5) THE REPORT MAY ALSO INCLUDE ANY RECOMMENDATIONS FOR CHANGES IN THE
CALCULATION OR ADMINISTRATION OF THE CREDIT, RECOMMENDATIONS REGARDING
CONTINUING MODIFICATION OR REPEAL OF THIS CREDIT, AND ANY OTHER INFORMA-
TION REGARDING THIS CREDIT AS MAY BE USEFUL AND APPROPRIATE.
S 3. This act shall take effect immediately with the first report
being due December 1, 2016, with regard to credits allocated in calendar
year 2015.
PART K
Section 1. Subdivision 14 of section 352 of the economic development
law, as added by section 1 of part MM of chapter 59 of the laws of 2010,
is amended and a new subdivision 20 is added to read as follows:
S. 4209 30
14. "Regionally significant project" means (a) a manufacturer creating
at least fifty net new jobs in the state and making significant capital
investment in the state; (b) a business creating at least twenty net new
jobs in agriculture in the state and making significant capital invest-
ment in the state, (c) a financial services firm, distribution center,
or back office operation creating at least three hundred net new jobs in
the state and making significant capital investment in the state, [or]
(d) a scientific research and development firm creating at least twenty
net new jobs in the state, and making significant capital investment in
the state, OR (E) A VIDEO GAME DEVELOPER CREATING AT LEAST TWENTY NET
NEW JOBS IN THE STATE AND MAKING SIGNIFICANT CAPITAL INVESTMENT IN THE
STATE. Other businesses creating three hundred or more net new jobs in
the state and making significant capital investment in the state may be
considered eligible as a regionally significant project by the commis-
sioner as well. The commissioner shall promulgate regulations pursuant
to section three hundred fifty-six of this article to determine what
constitutes significant capital investment for each of the project cate-
gories indicated in this subdivision and what additional criteria a
business must meet to be eligible as a regionally significant project,
including, but not limited to, whether a business exports a substantial
portion of its products or services outside of the state or outside of a
metropolitan statistical area or county within the state.
20. "VIDEO GAME DEVELOPER" MEANS A CORPORATION, PARTNERSHIP, LIMITED
PARTNERSHIP, OR OTHER ENTITY PRINCIPALLY ENGAGED IN THE PRODUCTION OR
POST-PRODUCTION OF VIDEO GAMES, OR THE PRODUCTION OR POST-PRODUCTION OF
VIDEO GAMES OTHER THAN THOSE EMBEDDED AND USED EXCLUSIVELY IN ADVERTIS-
ING, PROMOTIONAL WEBSITES OR MICROSITES, BUT SHALL NOT INCLUDE AN ENTITY
PRINCIPALLY ENGAGED IN THE PRODUCTION OF CONTENT INTENDED PRIMARILY FOR
INDUSTRIAL, CORPORATE OR INSTITUTIONAL END-USERS, PRINCIPALLY ENGAGED IN
THE PRODUCTION OF FUNDRAISING PROGRAMS, OR ENGAGED IN THE PRODUCTION OF
CONTENT FOR WHICH RECORDS ARE REQUIRED, UNDER SECTION 2257 OF TITLE 18
OF THE UNITED STATES CODE, TO BE MAINTAINED WITH RESPECT TO ANY PERFORM-
ER IN SUCH PRODUCTION.
S 2. Paragraph (c) of subdivision 1 and subdivision 3 of section 353
of the economic development law, paragraph (c) of subdivision 1 as
amended by section 2 of part G of chapter 61 of the laws of 2011 and
subdivision 3 as amended by section 1 of part C of chapter 68 of the
laws of 2013, are amended to read as follows:
(c) in software development and new media, OR AS A VIDEO GAME DEVELOP-
ER;
3. For the purposes of this article, in order to participate in the
excelsior jobs program, a business entity operating predominantly in
manufacturing must create at least ten net new jobs; a business entity
operating predominately in agriculture must create at least five net new
jobs; a business entity operating predominantly as a financial service
data center or financial services customer back office operation must
create at least fifty net new jobs; a business entity operating predomi-
nantly in scientific research and development must create at least five
net new jobs; a business entity operating predominantly in software
development OR AS A VIDEO GAME DEVELOPER must create at least five net
new jobs; a business entity creating or expanding back office operations
must create at least fifty net new jobs; or a business entity operating
predominantly as a distribution center in the state must create at least
seventy-five net new jobs, notwithstanding subdivision five of this
section; or a business entity must be a regionally significant project
as defined in this article; or
S. 4209 31
S 3. This act shall take effect immediately.
PART L
Intentionally Omitted
PART M
Intentionally Omitted
PART N
Section 1. Subparagraph (iv) of paragraph (a) of subdivision 1 of
section 210 of the tax law, as amended by section 12 of part A of chap-
ter 59 of the laws of 2014, is amended to read as follows:
(iv) (A) for taxable years beginning before January first, two thou-
sand sixteen, if the business income base is not more than two hundred
ninety thousand dollars the amount shall be six and one-half percent of
the business income base; if the business income base is more than two
hundred ninety thousand dollars but not over three hundred ninety thou-
sand dollars the amount shall be the sum of (1) eighteen thousand eight
hundred fifty dollars, (2) seven and one-tenth percent of the excess of
the business income base over two hundred ninety thousand dollars but
not over three hundred ninety thousand dollars and (3) four and thirty-
five hundredths percent of the excess of the business income base over
three hundred fifty thousand dollars but not over three hundred ninety
thousand dollars;
(B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND SIXTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND SEVENTEEN, IF THE
BUSINESS INCOME BASE IS NOT MORE THAN FOUR HUNDRED THOUSAND DOLLARS THE
AMOUNT SHALL BE THREE AND ONE-QUARTER PERCENT OF THE BUSINESS INCOME
BASE; IF THE BUSINESS INCOME BASE IS MORE THAN FOUR HUNDRED THOUSAND
DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS THE AMOUNT SHALL BE
THE SUM OF (1) THIRTEEN THOUSAND DOLLARS, (2) SIX AND ONE-HALF PERCENT
OF THE EXCESS OF THE BUSINESS INCOME BASE OVER FOUR HUNDRED THOUSAND
DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS AND (3) TWENTY-SIX
PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE OVER FOUR HUNDRED
FIFTY THOUSAND DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS;
(C) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, IF THE
BUSINESS INCOME BASE IS NOT MORE THAN FOUR HUNDRED THOUSAND DOLLARS THE
AMOUNT SHALL BE TWO AND NINE-TENTHS PERCENT OF THE BUSINESS INCOME BASE;
IF THE BUSINESS INCOME BASE IS MORE THAN FOUR HUNDRED THOUSAND DOLLARS
BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS THE AMOUNT SHALL BE THE SUM
OF (1) ELEVEN THOUSAND SIX HUNDRED DOLLARS, (2) SIX AND ONE-HALF PERCENT
OF THE EXCESS OF THE BUSINESS INCOME BASE OVER FOUR HUNDRED THOUSAND
DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS AND (3) TWENTY-EIGHT
AND EIGHT-TENTHS PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE OVER
FOUR HUNDRED FIFTY THOUSAND DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND
DOLLARS;
(D) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND EIGHTEEN, IF THE BUSINESS INCOME BASE IS NOT MORE THAN FOUR HUNDRED
THOUSAND DOLLARS THE AMOUNT SHALL BE TWO AND ONE-HALF PERCENT OF THE
BUSINESS INCOME BASE; IF THE BUSINESS INCOME BASE IS MORE THAN FOUR
S. 4209 32
HUNDRED THOUSAND DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS THE
AMOUNT SHALL BE THE SUM OF (1) TEN THOUSAND DOLLARS, (2) SIX AND
ONE-HALF PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE OVER FOUR
HUNDRED THOUSAND DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS AND
(3) THIRTY PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE OVER FOUR
HUNDRED FIFTY THOUSAND DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND
DOLLARS;
S 2. Paragraph 39 of subsection (c) of section 612 of the tax law, as
amended by section 1 of part Y of chapter 59 of the laws of 2013, is
amended to read as follows:
(39) In the case of a taxpayer who is a small business who has busi-
ness income and/or farm income as defined in the laws of the United
States, an amount equal to [three] TEN percent of the net items of
income, gain, loss and deduction attributable to such business or farm
entering into federal adjusted gross income, but not less than zero[,
for taxable years beginning after two thousand thirteen, an amount equal
to three and three-quarters percent of the net items of income, gain,
loss and deduction attributable to such business or farm entering into
federal adjusted gross income, but not less than zero, for taxable years
beginning after two thousand fourteen, and an amount equal to five
percent of the net items of income, gain, loss and deduction attribut-
able to such business or farm entering into federal adjusted gross
income, but not less than zero, for taxable years beginning after two
thousand fifteen]. PROVIDED THAT SUCH BUSINESS OR FARM INCOME IS LESS
THAN OR EQUAL TO FIVE HUNDRED THOUSAND DOLLARS. For the purposes of this
paragraph, the term small business shall mean a [sole proprietor] BUSI-
NESS or a farm business who employs one or more persons during the taxa-
ble year and who has net business income or net farm income of EQUAL TO
OR less than [two hundred fifty thousand dollars] FIVE HUNDRED THOUSAND
DOLLARS. FOR THE PURPOSES OF THIS PARAGRAPH, IF THE TAXPAYER IS A
MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY COMPANY, PARTNER-
SHIP OR S-CORPORATION, THE TAXPAYER WILL ONLY BE ELIGIBLE UNDER THIS
PARAGRAPH IF THE NEW YORK SOURCE GROSS INCOME OF THE LIMITED LIABILITY
COMPANY, PARTNERSHIP OR S-CORPORATION DOES NOT EXCEED ONE MILLION
DOLLARS. NEW YORK SOURCE GROSS INCOME IS THE SUM OF THE MEMBERS, PART-
NERS, OR SHAREHOLDERS SHARES OF FEDERAL GROSS INCOME FROM THE LIMITED
LIABILITY COMPANY, PARTNERSHIP, OR S-CORPORATION DERIVED FROM OR
CONNECTED WITH NEW YORK SOURCES, DETERMINED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION SIX HUNDRED THIRTY-ONE OF THIS ARTICLE AS IF THOSE
PROVISIONS AND ANY RELATED PROVISIONS EXPRESSLY REFERRED TO A COMPUTA-
TION OF FEDERAL GROSS INCOME FROM NEW YORK SOURCES.
S 3. This act shall take effect immediately; provided that section two
of this act shall apply to taxable years beginning on or after January
1, 2016.
PART O
Section 1. The economic development law is amended by adding a new
article 22 to read as follows:
ARTICLE 22
TECHNOLOGY INTERNSHIP PROGRAM
SECTION 441. TECHNOLOGY INTERNSHIP PROGRAM.
442. POWERS AND DUTIES OF THE COMMISSIONER.
443. RECORDKEEPING REQUIREMENTS.
S. 4209 33
444. CAP ON TAX CREDIT.
S 441. TECHNOLOGY INTERNSHIP PROGRAM. THERE IS HEREBY ESTABLISHED
WITHIN THE DIVISION OF SCIENCE, TECHNOLOGY AND INNOVATION A TECHNOLOGY
INTERNSHIP PROGRAM TO PROVIDE EMPLOYMENT AND EXPERIENCE OPPORTUNITIES
FOR CURRENT STUDENTS, RECENT GRADUATES AND MEMBERS OF THE ARMED FORCES.
1. TO BE ELIGIBLE TO PARTICIPATE IN THE TECHNOLOGY INTERNSHIP PROGRAM,
A CANDIDATE SHALL:
A. I. (A) BE A STUDENT ENROLLED AT A PUBLIC OR PRIVATE NONPROFIT
INSTITUTION OF HIGHER EDUCATION IN THIS STATE; AND
(B) MAINTAIN A CUMULATIVE 3.0 GRADE POINT AVERAGE ON A 4.0 SCALE EACH
ACADEMIC YEAR; OR
II. (A) WITHIN TWELVE MONTHS BEFORE THE DATE OF THE APPLICATION FOR
THE PROGRAM, HAVE GRADUATED FROM A PUBLIC OR PRIVATE NONPROFIT INSTITU-
TION OF HIGHER EDUCATION IN THIS STATE; AND
(B) HAVE MAINTAINED A CUMULATIVE 3.0 GRADE POINT AVERAGE ON A 4.0
SCALE DURING THE LATEST ACADEMIC YEAR THE INDIVIDUAL WAS ENROLLED AS A
STUDENT; OR
III. (A) HAVE BEEN HONORABLY DISCHARGED FROM THE UNITED STATES ARMED
FORCES, THE NATIONAL GUARD, OR A RESERVE COMPONENT OF THE UNITED STATES
ARMED FORCES; AND
(B) HAVE GRADUATED FROM A PUBLIC OR PRIVATE NONPROFIT INSTITUTION OF
HIGHER EDUCATION; AND
B. COMMIT TO WORKING A MINIMUM OF ONE HUNDRED TWENTY HOURS DURING THE
SPRING, FALL OR SUMMER SEMESTER;
2. TO QUALIFY FOR PARTICIPATION IN THE PROGRAM, A BUSINESS SHALL:
A. BE LOCATED IN THE STATE;
B. BE AN ADVANCED TECHNOLOGY BASED COMPANY AS DEFINED BY CRITERIA
ESTABLISHED BY THE DIVISION;
C. HAVE LESS THAN ONE HUNDRED EMPLOYEES;
D. COMMIT TO HOSTING AN INTERN FOR A MINIMUM OF ONE HUNDRED TWENTY
HOURS DURING THE SPRING, FALL OR SUMMER SEMESTER; AND
E. PROVIDE THE DIVISION A DETAILED DESCRIPTION OF THE INTERN POSITION
THAT ESTABLISHES HOW THE POSITION WILL PROVIDE THE INTERN EXPERIENCE IN
ADVANCED TECHNOLOGY.
S 442. POWERS AND DUTIES OF THE COMMISSIONER. 1. THE COMMISSIONER MAY
APPROVE AN APPLICATION FROM A BUSINESS ENTITY UPON DETERMINING THAT SUCH
BUSINESS ENTITY MEETS THE ELIGIBILITY CRITERIA ESTABLISHED IN SECTION
FOUR HUNDRED FORTY-ONE OF THIS ARTICLE. FOLLOWING APPROVAL BY THE
COMMISSIONER OF AN APPLICATION BY A BUSINESS ENTITY TO PARTICIPATE IN
THE TECHNOLOGY INTERNSHIP PROGRAM, THE COMMISSIONER SHALL ISSUE A
CERTIFICATE OF TAX CREDIT TO THE BUSINESS ENTITY UPON ITS DEMONSTRATING
THE INTERN WAS ELIGIBLE AND COMPLETED ONE HUNDRED TWENTY HOURS OF WORK
DURING THE RELEVANT SEMESTER. THE AMOUNT OF THE CREDIT SHALL BE EQUAL
TO UP TO FIFTY PERCENT OF A STIPEND PAID TO AN INTERN, BUT NOT MORE
THAN ONE THOUSAND EIGHT HUNDRED DOLLARS FOR THE FIRST SEMESTER; AND ONE
THOUSAND TWO HUNDRED DOLLARS FOR THE SECOND SEMESTER. SUCH AMOUNT MAY
NOT TOTAL MORE THAN THREE THOUSAND DOLLARS EACH YEAR FOR EACH INTERN.
THE TAX CREDITS SHALL BE CLAIMED BY THE QUALIFIED EMPLOYER AS SPECIFIED
IN SUBDIVISION FIFTY OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (DDD)
OF SECTION SIX HUNDRED SIX OF THE TAX LAW.
2. THE COMMISSIONER SHALL, IN CONSULTATION WITH THE COMMISSIONER OF
LABOR, PROMULGATE REGULATIONS CONSISTENT WITH THE PURPOSES OF THIS ARTI-
CLE.
3. THE COMMISSIONER SHALL, IN CONSULTATION WITH THE DEPARTMENT OF
TAXATION AND FINANCE, DEVELOP A CERTIFICATE OF TAX CREDIT THAT SHALL BE
S. 4209 34
ISSUED BY THE COMMISSIONER TO PARTICIPATING BUSINESS ENTITIES. PARTIC-
IPANTS MAY BE REQUIRED BY THE COMMISSIONER OF TAXATION AND FINANCE TO
INCLUDE THE CERTIFICATE OF TAX CREDIT WITH THEIR TAX RETURN TO RECEIVE
ANY TAX BENEFITS UNDER THIS ARTICLE.
4. 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 FOUR HUNDRED FORTY-ONE OF THIS
ARTICLE OR FOR MAKING A MATERIAL MISREPRESENTATION WITH RESPECT TO ITS
PARTICIPATION IN THE TECHNOLOGY INTERNSHIP PROGRAM.
S 443. RECORDKEEPING REQUIREMENTS. EACH BUSINESS ENTITY PARTICIPATING
IN THE TECHNOLOGY INTERNSHIP PROGRAM SHALL MAINTAIN ALL RELEVANT RECORDS
FOR THE DURATION OF ITS PROGRAM PARTICIPATION PLUS THREE YEARS.
S 444. 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 ONE MILLION DOLLARS.
S 2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 50 to read as follows:
50. TECHNOLOGY INTERNSHIP PROGRAM TAX CREDIT. (A) A TAXPAYER THAT HAS
BEEN APPROVED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT TO PARTICIPATE
IN THE TECHNOLOGY INTERNSHIP PROGRAM AND HAS BEEN ISSUED A CERTIFICATE
OF TAX CREDIT PURSUANT TO SECTION FOUR HUNDRED FORTY-TWO OF THE ECONOMIC
DEVELOPMENT LAW SHALL BE ALLOWED TO CLAIM A CREDIT AGAINST THE TAX
IMPOSED BY THIS ARTICLE. THE CREDIT SHALL EQUAL UP TO FIFTY PERCENT OF
A STIPEND PAID TO AN INTERN, BUT NOT MORE THAN ONE THOUSAND EIGHT
HUNDRED DOLLARS FOR THE FIRST SEMESTER; AND ONE THOUSAND TWO HUNDRED
DOLLARS FOR THE SECOND SEMESTER. SUCH AMOUNT MAY NOT TOTAL MORE THAN
THREE THOUSAND DOLLARS EACH YEAR FOR EACH INTERN. IN NO EVENT SHALL A
TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT OF CREDIT LISTED ON
THE CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC
DEVELOPMENT. THE CREDIT WILL BE ALLOWED IN THE TAXABLE YEAR IN WHICH THE
INTERN WORKED.
(B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY
NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS THAN THE AMOUNT PRESCRIBED
IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS
ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVI-
SION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, OR IF THE
TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT,
ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN THAT TAXABLE YEAR WILL 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
WILL BE PAID THEREON.
(C) THE TAXPAYER MAY BE REQUIRED TO ATTACH TO ITS TAX RETURN ITS
CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC DEVEL-
OPMENT PURSUANT TO SECTION FOUR HUNDRED FORTY-TWO OF THE ECONOMIC DEVEL-
OPMENT LAW. IN NO EVENT SHALL THE TAXPAYER BE ALLOWED A CREDIT GREATER
THAN THE AMOUNT OF THE CREDIT LISTED IN THE CERTIFICATE OF TAX CREDIT,
OR IN THE CASE OF A TAXPAYER WHO IS A PARTNER IN A PARTNERSHIP OR A
MEMBER OF A LIMITED LIABILITY COMPANY, ITS PRO RATA SHARE OF THE AMOUNT
OF CREDIT LISTED IN THE CERTIFICATE OF TAX CREDIT ISSUED TO THE PARTNER-
SHIP OR LIMITED LIABILITY COMPANY.
S 3. Section 606 of the tax law is amended by adding a new subsection
(ddd) to read as follows:
S. 4209 35
(DDD) TECHNOLOGY INTERNSHIP PROGRAM TAX CREDIT. (1) A TAXPAYER THAT
HAS BEEN APPROVED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT TO PARTIC-
IPATE IN THE TECHNOLOGY INTERNSHIP PROGRAM AND HAS BEEN ISSUED A CERTIF-
ICATE OF TAX CREDIT PURSUANT TO SECTION FOUR HUNDRED FORTY-TWO OF THE
ECONOMIC DEVELOPMENT LAW SHALL BE ALLOWED TO CLAIM A CREDIT AGAINST THE
TAX IMPOSED BY THIS ARTICLE. THE CREDIT SHALL EQUAL UP TO FIFTY PERCENT
OF A STIPEND PAID TO AN INTERN, BUT NOT MORE THAN ONE THOUSAND EIGHT
HUNDRED DOLLARS FOR THE FIRST SEMESTER; AND ONE THOUSAND TWO HUNDRED
DOLLARS FOR THE SECOND SEMESTER. SUCH AMOUNT MAY NOT TOTAL MORE THAN
THREE THOUSAND DOLLARS EACH YEAR FOR EACH INTERN. IN NO EVENT SHALL A
TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT LISTED ON THE
CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC DEVEL-
OPMENT. IN THE CASE OF A TAXPAYER WHO IS A PARTNER IN A PARTNERSHIP,
MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN AN S CORPO-
RATION, THE TAXPAYER SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT
EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR S CORPORATION.
THE CREDIT WILL BE ALLOWED IN THE TAXABLE YEAR IN WHICH THE INTERN
WORKED.
(2) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR THE TAXABLE 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, NO INTEREST WILL BE PAID THEREON.
S 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xlii) to read as
follows:
(XLII) TECHNOLOGY INTERNSHIP AMOUNT OF CREDIT UNDER
PROGRAM CREDIT UNDER SUBDIVISION FIFTY OF
SUBSECTION (DDD) SECTION TWO HUNDRED TEN-B
S 5. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2015.
PART P
Intentionally Omitted
PART Q
Intentionally Omitted
PART R
Section 1. Subdivision (b) of section 27-1318 of the environmental
conservation law, as amended by section 2 of part E of chapter 577 of
the laws of 2004, is amended to read as follows:
(b) Within [sixty] ONE HUNDRED EIGHTY days of commencement of the
remedial design, the owner of an inactive hazardous waste disposal site,
and/or any person responsible for implementing a remedial program at
such site, where institutional or engineering controls are employed
pursuant to this title, shall execute an environmental easement pursuant
to title thirty-six of article seventy-one of this chapter.
S 2. Subdivision 2 of section 27-1405 of the environmental conserva-
tion law, as amended by section 2 of part A of chapter 577 of the laws
S. 4209 36
of 2004, is amended and four new subdivisions 29, 30, 31 and 32 are
added to read as follows:
2. "Brownfield site" or "site" shall mean any real property[, the
redevelopment or reuse of which may be complicated by the presence or
potential presence of] WHERE a contaminant IS PRESENT AT LEVELS EXCEED-
ING THE SOIL CLEANUP OBJECTIVES OR OTHER HEALTH BASED OR ENVIRONMENTAL
STANDARDS, CRITERIA OR GUIDANCE ADOPTED BY THE DEPARTMENT THAT ARE
APPLICABLE BASED ON THE REASONABLY ANTICIPATED USE OF THE PROPERTY, AS
DETERMINED BY THE APPLICANT IN ACCORDANCE WITH APPLICABLE REGULATIONS.
Such term shall not include real property:
(a) listed in the registry of inactive hazardous waste disposal sites
under section 27-1305 of this article at the time of application to this
program and given a classification as described in subparagraph one or
two of paragraph b of subdivision two of section 27-1305 of this arti-
cle; provided, however [except until July first, two thousand five],
real property listed in the registry of inactive hazardous waste
disposal sites under subparagraph two of paragraph b of subdivision two
of section 27-1305 of this article [prior to the effective date of this
article], where such real property is owned by a volunteer OR UNDER
CONTRACT TO BE TRANSFERRED TO A VOLUNTEER, shall not be deemed ineligi-
ble to participate, PROVIDED THAT, PRIOR TO THE SITE BEING ACCEPTED INTO
THE BROWNFIELD CLEANUP PROGRAM, THE DEPARTMENT HAS NOT IDENTIFIED ANY
RESPONSIBLE PARTY FOR THAT PROPERTY HAVING THE ABILITY TO PAY FOR THE
INVESTIGATION OR CLEANUP OF THE PROPERTY and further provided that the
status of any such site as listed in the registry shall not be altered
prior to the issuance of a certificate of completion pursuant to section
27-1419 of this title. THE DEPARTMENT'S ASSESSMENT OF ELIGIBILITY UNDER
THIS PARAGRAPH SHALL NOT CONSTITUTE A FINDING CONCERNING LIABILITY WITH
RESPECT TO THE PROPERTY;
(b) listed on the national priorities list established under authority
of 42 U.S.C. section 9605;
(c) subject to an enforcement action under title seven or nine of this
article, [except] OR PERMITTED OR REQUIRED TO BE PERMITTED as a treat-
ment, storage or disposal facility [subject to a permit]; provided, that
nothing herein contained shall be deemed otherwise to exclude from the
scope of the term "brownfield site" a hazardous waste treatment, storage
or disposal facility having interim status according to regulations
promulgated by the commissioner AND PROVIDED FURTHER THAT REAL PROPERTY
OWNED BY A VOLUNTEER OR UNDER CONTRACT TO BE TRANSFERRED TO A VOLUNTEER,
WHETHER OR NOT OPERATING PURSUANT TO AN ORDER ON CONSENT ISSUED BY THE
DEPARTMENT SHALL NOT BE DEEMED INELIGIBLE TO PARTICIPATE PROVIDED THAT,
PRIOR TO THE SITE BEING ACCEPTED INTO THE BROWNFIELD CLEANUP PROGRAM,
THE DEPARTMENT HAS NOT IDENTIFIED ANY RESPONSIBLE PARTY FOR THAT PROPER-
TY HAVING THE ABILITY TO PAY FOR THE INVESTIGATION OR CLEANUP OF THE
PROPERTY;
(d) subject to an order for cleanup pursuant to article twelve of the
navigation law or pursuant to title ten of article seventeen of this
chapter except such property shall not be deemed ineligible if it is
subject to a stipulation agreement; [or]
(e) subject to any other on-going state or federal environmental
enforcement action related to the contamination which is at or emanating
from the site subject to the present application[.]; OR
(F) NOTWITHSTANDING PARAGRAPHS (A), (C), AND (D) OF THIS SUBDIVISION,
ANY VOLUNTEER HAVING AN OWNERSHIP OR TENANCY INTEREST, OR WHO HAS A
CONTRACT TO PURCHASE OR OBTAIN SUCH OWNERSHIP OR TENANCY INTEREST, IN
ANY REAL PROPERTY LOCATED WITHIN A BUSINESS OR TECHNOLOGY PARK EXCEEDING
S. 4209 37
FIVE HUNDRED ACRES IN SIZE, USED PRIMARILY FOR MANUFACTURING OR RESEARCH
AND DEVELOPMENT SHALL NOT BE DEEMED INELIGIBLE TO PARTICIPATE IN THE
BROWNFIELD CLEANUP PROGRAM. IN SUCH CASES, THE SITE PREPARATION CREDIT
COMPONENT AND THE ON-SITE GROUNDWATER REMEDIATION CREDIT COMPONENT UNDER
PARAGRAPHS TWO AND FOUR, RESPECTIVELY, OF SUBDIVISION (A) OF SECTION 21
OF THE TAX LAW SHALL BE LIMITED ONLY TO THE INCREMENTAL COSTS EXCEEDING
THOSE NECESSARY TO SATISFY THE CLOSURE REQUIREMENTS OF THE PERMIT OR
ORDER, AS APPLICABLE, THAT THE RESPONSIBLE PARTY HAS WITH THE DEPARTMENT
OF ENVIRONMENTAL CONSERVATION OR THE UNITED STATES ENVIRONMENTAL
PROTECTION AGENCY.
29. "AFFORDABLE HOUSING PROJECT" MEANS A PROJECT WHERE AT LEAST SEVEN-
TY PERCENT OF THE FLOOR AREA WILL BE FOR AFFORDABLE HOUSING, DEFINED AS
HAVING AT LEAST TWENTY PERCENT OF ITS RESIDENTIAL UNITS SUBJECT TO AN
AGREEMENT WITH MUNICIPALITY, THE STATE, THE FEDERAL GOVERNMENT, OR AN
INSTRUMENTALITY THEREOF WHERE SUCH AGREEMENT RESTRICTS OCCUPANCY OF
THOSE UNITS TO RESIDENTS WHO QUALIFY IN ACCORDANCE WITH AN INCOME TEST.
30. "UNDERUTILIZED" SHALL MEAN THE BROWNFIELD SITE AND ANY IMPROVE-
MENTS: (A) ON WHICH A BUILDING OR BUILDINGS CONTAINING NO MORE THAN
FIFTY PERCENT OF THE PERMISSIBLE FLOOR AREA UNDER APPLICABLE ZONING IS
BEING UTILIZED; OR (B) HAS A VALUE OF EQUAL TO OR LESS THAN SEVENTY
PERCENT OF THE AVERAGE VALUATION OF LAND IN THE COUNTY OR CITY IN WHICH
THE LAND IS LOCATED, EXCEPT IN A CITY HAVING A POPULATION OF ONE MILLION
OR MORE INHABITANTS WHERE THE AVERAGE VALUATION SHALL BE BASED ON THE
COUNTY IN WHICH THE LAND IS LOCATED; OR (C) HAS BEEN CERTIFIED BY THE
MUNICIPALITY IN WHICH THE SITE IS LOCATED AS UNDERUTILIZED PURSUANT TO
THE CRITERIA IN THIS SUBDIVISION.
31. "FUNCTIONALLY OBSOLESCENT" SHALL MEAN THE BROWNFIELD SITE AND ANY
IMPROVEMENTS THEREON THAT: (A) CAN NO LONGER BE FUNCTIONALLY OR ECONOM-
ICALLY UTILIZED IN THE CAPACITY IN WHICH IT WAS FORMERLY UTILIZED
BECAUSE OF (I) THE CONFIGURATION OF THE BUILDING; OR (II) SUBSTANTIAL
STRUCTURAL DEFECTS NOT BROUGHT ABOUT BY DEFERRED MAINTENANCE PRACTICES
OR INTENTIONAL CONDUCT; OR (B) THE ENTIRE SITE OR A SIGNIFICANT PORTION
THEREOF, WITH OR WITHOUT IMPROVEMENTS IS USED IRREGULARLY OR INTERMIT-
TENTLY; OR (C) THE FUNCTIONALITY OF THE EQUIPMENT INSIDE THE BUILDING OR
BUILDINGS IS OBSOLETE FOR A MODERN DAY APPLICATION.
32. "STIGMA" IS THE INCREMENTAL LOSS IN VALUE BEYOND THE COST FACTOR
DUE TO MARKET PERCEPTIONS ARISING FROM UNCERTAINTY AND FEAR ASSOCIATED
WITH THE ACTUAL OR POTENTIAL PRESENCE OF CONTAMINATION.
S 3. Subdivision 1 of section 27-1407 of the environmental conserva-
tion law, as amended by section 3 of part A of chapter 577 of the laws
of 2004, is amended and a new subdivision 1-a is added to read as
follows:
1. A person who seeks to participate in this program shall submit a
request to the department on a form provided by the department. Such
form shall include information to be determined by the department suffi-
cient to allow the department to determine eligibility and the current,
intended and reasonably anticipated future land use of the site pursuant
to section 27-1415 of this title. ANY SUCH PERSON SHALL SUBMIT AN
INVESTIGATION REPORT SUFFICIENT TO DEMONSTRATE THAT THE SITE REQUIRES
REMEDIATION IN ORDER TO MEET THE REMEDIAL REQUIREMENTS OF THIS TITLE.
1-A. IF THE PERSON IS ALSO SEEKING TO RECEIVE THE TANGIBLE PROPERTY
CREDIT COMPONENT OF THE BROWNFIELD REDEVELOPMENT TAX CREDIT PURSUANT TO
PARAGRAPH THREE OF SUBDIVISION (A) OF SECTION TWENTY-ONE OF THE TAX LAW,
FOR A SITE SITUATED IN A CITY HAVING A POPULATION OF ONE MILLION OR MORE
PERSONS, SUCH PERSON SHALL SUBMIT INFORMATION SUFFICIENT TO DEMONSTRATE
THAT: (A) AT LEAST HALF OF THE SITE AREA IS LOCATED IN THE ENVIRON-
S. 4209 38
MENTAL ZONE AS DEFINED IN SECTION TWENTY-ONE OF THE TAX LAW OR IS
LOCATED IN A CENSUS TRACT IMMEDIATELY ADJACENT TO SUCH A CENSUS TRACT
THAT IS DESIGNATED AS AN "ENVIRONMENTAL ZONE" AS DEFINED IN PARAGRAPH
SIX OF SUCH DIVISION (B) OF SECTION TWENTY-ONE OF THE TAX LAW, PROVIDED
FURTHER HOWEVER, THAT THE ADJACENT CENSUS TRACT ELIGIBILITY CRITERIA
SHALL ONLY BE APPLICABLE IF SUCH AN ADJACENT CENSUS TRACT IS LOCATED
WITHIN A VILLAGE, TOWN, OR CITY WITH A POPULATION LESS THAN THREE
HUNDRED TWENTY-FIVE THOUSAND; (B) THE PROJECTED COSTS AND ALL INCURRED
COSTS OF THE INVESTIGATION AND REMEDIATION WHICH IS PROTECTIVE FOR THE
ANTICIPATED USE OF THE SITE EXCEEDS THIRTY-THREE PERCENT OF THE UNIM-
PAIRED VALUE OF THE PROPERTY LESS STIGMA; (C) THE PROJECT IS AN AFFORDA-
BLE HOUSING PROJECT; (D) THE SITE IS UNDERUTILIZED; OR (E) THE SITE IS
FUNCTIONALLY OBSOLESCENT. AN APPLICANT MAY REQUEST AN ELIGIBILITY DETER-
MINATION FOR TANGIBLE PROPERTY CREDITS AT ANY TIME FROM APPLICATION
UNTIL THE SITE RECEIVES A CERTIFICATE OF COMPLETION PURSUANT TO SECTION
27-1419 OF THIS TITLE.
S 4. Subdivision 3 of section 27-1407 of the environmental conserva-
tion law, as amended by section 3 of part A of chapter 577 of the laws
of 2004, is amended to read as follows:
3. The department shall notify the person requesting participation in
this program within [ten] THIRTY days after receiving such request that
such request is either complete or incomplete. In the event the applica-
tion is determined to be incomplete the department shall specify in
writing the missing necessary information required pursuant to this
article to complete the application and shall have ten days after
receipt of the missing information to issue a written determination if
the application is complete.
S 5. Subdivision 6 of section 27-1407 of the environmental conserva-
tion law, as added by section 1 of part A of chapter 1 of the laws of
2003, is amended to read as follows:
6. The department shall use all best efforts to expeditiously notify
the applicant within forty-five days after receiving their request for
participation that such request is either accepted or rejected, AND, FOR
ANY APPLICANT SEEKING TO RECEIVE THE TANGIBLE PROPERTY CREDIT COMPONENT
OF THE BROWNFIELD REDEVELOPMENT TAX CREDIT PURSUANT TO PARAGRAPH THREE
OF SUBDIVISION (A) OF SECTION TWENTY-ONE OF THE TAX LAW, SHALL CONCUR-
RENTLY NOTIFY THE APPLICANT WHETHER THE CRITERIA FOR RECEIVING SUCH
COMPONENT AS SET FORTH IN SUBDIVISION ONE OF THIS SECTION HAVE BEEN MET.
S 6. Subdivision 9 of section 27-1407 of the environmental conserva-
tion law is amended by adding a new paragraph (g) to read as follows:
(G) THE PERSON'S PARTICIPATION IN ANY REMEDIAL PROGRAM UNDER THE
DEPARTMENT'S OVERSIGHT WAS TERMINATED BY THE DEPARTMENT OR BY A COURT
FOR FAILURE TO SUBSTANTIALLY COMPLY WITH AN AGREEMENT OR ORDER.
S 7. Subdivision 2 of section 27-1409 of the environmental conserva-
tion law, as amended by section 4 of part A of chapter 577 of the laws
of 2004, is amended and a new subdivision 9-a is added to read as
follows:
2. One requiring (A) the [applicant] PARTICIPANT to pay for state
costs, INCLUDING THE RECOVERY OF STATE COSTS INCURRED BEFORE THE EFFEC-
TIVE DATE OF SUCH AGREEMENT; provided, however, that SUCH COSTS MAY BE
BASED ON A REASONABLE FLAT-FEE FOR OVERSIGHT, WHICH SHALL REFLECT THE
PROJECTED FUTURE STATE COSTS INCURRED IN NEGOTIATING AND OVERSEEING
IMPLEMENTATION OF SUCH AGREEMENT; AND
(B) with respect to a brownfield site which the department has deter-
mined constitutes a significant threat to the public health or environ-
ment the department may include a provision requiring the applicant to
S. 4209 39
provide a technical assistance grant, as described in subdivision four
of section 27-1417 of this title and under the conditions described
therein, to an eligible party in accordance with procedures established
under such program, with the cost of such a grant incurred by a volun-
teer serving as an offset against such state costs[. Where the appli-
cant is a participant, the department shall include provisions relating
to recovery of state costs incurred before the effective date of such
agreement];
9-A. ONE STATING THAT THE STATE SHALL NOT CONSIDER THE APPLICANT AN
OPERATOR OF SUCH BROWNFIELD SITE BASED SOLELY UPON EXECUTION OR IMPLE-
MENTATION OF SUCH BROWNFIELD SITE CLEANUP AGREEMENT FOR PURPOSES OF
REMEDIATION LIABILITY;
S 8. Section 27-1411 of the environmental conservation law is amended
by adding a new subdivision 6 to read as follows:
6. AN APPLICANT SHALL INCLUDE WITH EVERY REPORT SUBMITTED TO THE
DEPARTMENT A SCHEDULE FOR THE SUBMISSION OF ANY SUBSEQUENT WORK PLAN
REQUIRED TO MEET THE REQUIREMENTS OF THIS TITLE.
S 9. Subdivision 2 of section 27-1413 of the environmental conserva-
tion law, as amended by section 6 of part A of chapter 577 of the laws
of 2004, is amended to read as follows:
2. For all [other] sites SEEKING TO RECEIVE THE TANGIBLE PROPERTY
CREDIT COMPONENT PURSUANT TO PARAGRAPH THREE OF SUBDIVISION (A) OF
SECTION TWENTY-ONE OF THE TAX LAW AND ALL SITES ACCEPTED PURSUANT TO
SUBDIVISION ONE-B OF SECTION 27-1407 OF THIS TITLE, the applicant shall
develop and evaluate at least two remedial alternatives, one of which
would achieve a Track 1 cleanup. The department shall have the
discretion to require the evaluation of additional alternatives at a
site that has been determined to pose a significant threat. The appli-
cant shall submit the alternatives analysis [as a part of the remedial
work plan to the department] WITHIN SIXTY DAYS OF THE ACCEPTANCE OF THE
REMEDIAL INVESTIGATION BY THE DEPARTMENT for review, approval, modifica-
tion or rejection BY THE DEPARTMENT.
S 10. Subdivision 4 of section 27-1415 of the environmental conserva-
tion law, as amended by section 7 of part A of chapter 577 of the laws
of 2004, is amended to read as follows:
4. Tracks. The commissioner, in consultation with the commissioner of
health, shall propose within twelve months and thereafter timely promul-
gate regulations which create a multi-track approach for the remediation
of contamination, and, commencing on the effective date of such regu-
lations, utilize such multi-track approach. Such regulations shall
provide that groundwater use in Tracks 2, 3 or 4 can be either
restricted or unrestricted. The tracks shall be as follows:
Track 1: The remedial program shall achieve a cleanup level that will
allow the site to be used for any purpose without restriction and with-
out reliance on the long-term employment of institutional or engineering
controls, and shall achieve contaminant-specific remedial action objec-
tives for soil which conform with those contained in the generic table
of contaminant-specific remedial action objectives for unrestricted use
developed pursuant to subdivision six of this section. Provided, howev-
er, that volunteers whose proposed remedial program [for the remediation
of groundwater] (1)(I) may require the long-term employment of institu-
tional or engineering controls FOR THE REMEDIATION OF GROUNDWATER after
the bulk reduction of groundwater contamination to asymptotic levels has
been achieved OR (II) MAY REQUIRE AN INSTITUTIONAL OR ENGINEERING
CONTROL FOR MORE THAN FIVE YEARS SOLELY TO ADDRESS SOIL VAPOR INTRUSION
S. 4209 40
but (2) whose program would otherwise conform with the requirements
necessary to qualify for Track 1, shall qualify for Track 1.
Track 2: The remedial program may include restrictions on the use of
the site or reliance on the long-term employment of engineering and/or
institutional controls, but shall achieve contaminant-specific remedial
action objectives for soil which conform with those contained in one of
the generic tables developed pursuant to subdivision six of this section
without the use of institutional or engineering controls to reach such
objectives.
Track 3: The remedial program shall achieve contaminant-specific reme-
dial action objectives for soil which conform with the criteria used to
develop the generic tables for such objectives developed pursuant to
subdivision six of this section but may use site specific data to deter-
mine such objectives.
Track 4: The remedial program shall achieve a cleanup level that will
be protective for the site's current, intended or reasonably anticipated
residential, commercial, or industrial use with restrictions and with
reliance on the long-term employment of institutional or engineering
controls to achieve such level. The regulations shall include a
provision requiring that a cleanup level which poses a risk in excee-
dance of an excess cancer risk of one in one million for carcinogenic
end points and a hazard index of one for non-cancer end points for a
specific contaminant at a specific site may be approved by the depart-
ment without requiring the use of institutional or engineering controls
to eliminate exposure only upon a site specific finding by the commis-
sioner, in consultation with the commissioner of health, that such level
shall be protective of public health and environment. Such finding shall
be included in the draft remedial work plan for the site and fully
described in the notice and fact sheet provided for such work plan.
S 11. Paragraphs (b), (c) and (d) of subdivision 7 of section 27-1415
of the environmental conservation law are relettered paragraphs (c), (d)
and (e) and a new paragraph (b) is added to read as follows:
(B) WITHIN ONE HUNDRED EIGHTY DAYS OF COMMENCEMENT OF THE REMEDIAL
DESIGN OR AT LEAST THREE MONTHS PRIOR TO THE DATE OF THE ANTICIPATED
ISSUANCE OF THE CERTIFICATE OF COMPLETION, THE OWNER OF A BROWNFIELD
SITE, AND/OR ANY PERSON RESPONSIBLE FOR IMPLEMENTING A REMEDIAL PROGRAM
AT SUCH SITE, WHERE INSTITUTIONAL OR ENGINEERING CONTROLS ARE EMPLOYED
PURSUANT TO THIS TITLE, SHALL EXECUTE AN ENVIRONMENTAL EASEMENT PURSUANT
TO TITLE THIRTY-SIX OF ARTICLE SEVENTY-ONE OF THIS CHAPTER.
S 12. Paragraph (h) of subdivision 3 of section 27-1417 of the envi-
ronmental conservation law is REPEALED, paragraph (i) is relettered
paragraph (h) and paragraph (f), as amended by section 8 of part A of
chapter 577 of the laws of 2004, is amended to read as follows:
(f) Before the department [finalizes] SELECTS a proposed [remedial
work plan] REMEDY FROM THE ALTERNATIVES SET FORTH IN THE ALTERNATIVES
ANALYSIS AS PRESCRIBED BY SECTION 27-1413 OF THIS TITLE or makes a
determination that site conditions meet the requirements of this title
without the necessity for remediation pursuant to section 27-1411 of
this title, the department, in consultation with the applicant, must
notify individuals on the brownfield site contact list. Such notice
shall include a fact sheet describing such plan and provide for a
forty-five day public comment period. The commissioner shall hold a
public meeting if requested by the affected community and the commis-
sioner has found that the site constitutes a significant threat to the
public health or the environment. Further, the affected community may
request a public meeting at sites that do not constitute a significant
S. 4209 41
threat. (1) To the extent that the department has determined that site
conditions do not pose a significant threat and the site is being
addressed by a volunteer, the notice shall state that the department has
determined that no remediation is required for the off-site areas and
that the department's determination of a significant threat is subject
to this forty-five day comment period. (2) If the [remedial work plan]
REMEDY includes a Track 2, Track 3 or Track 4 remedy at a non-signifi-
cant threat site, such comment period shall apply both to the approval
of the alternatives analysis by the department, IF APPLICABLE, and the
proposed remedy selected by the applicant.
S 13. Subdivision 1, paragraph (a) of subdivision 2 and subdivision 3
of section 27-1419 of the environmental conservation law, subdivision 1
and paragraph (a) of subdivision 2 as added by section 1 of part A of
chapter 1 of the laws of 2003, subdivision 3 as amended by chapter 390
of the laws of 2008, are amended to read as follows:
1. Upon certification by the applicant that the remediation require-
ments of this title have been OR WILL BE achieved IN ACCORDANCE WITH THE
TIMEFRAMES, IF ANY, ESTABLISHED IN THE REMEDIAL WORK PLAN for the brown-
field site, such applicant shall submit to the department a final engi-
neering report prepared by an individual licensed or otherwise author-
ized in accordance with article one hundred forty-five of the education
law to practice the profession of engineering.
(a) a description of the remediation activities completed pursuant to
the remedial work plan AND ANY INTERIM REMEDIAL MEASURES for the brown-
field site;
3. Upon receipt of the final engineering report, the department shall
review such report and the data submitted pursuant to the brownfield
site cleanup agreement as well as any other relevant information regard-
ing the brownfield site. Upon satisfaction of the commissioner that the
remediation requirements set forth in this title have been or will be
achieved in accordance with the timeframes, if any, established in the
remedial work plan, the commissioner shall issue a written certificate
of completion[, such]. THE certificate shall include such information as
determined by the department of taxation and finance, including but not
BE limited to the brownfield site boundaries included in the final engi-
neering report, the date of the brownfield site CLEANUP agreement
[pursuant to section 27-1409 of this title], and the applicable percent-
ages available AS OF THE DATE OF THE CERTIFICATE OF COMPLETION for that
site for purposes of section twenty-one of the tax law[, with such
percentages to be determined as follows with respect to such qualified
site]. FOR THOSE SITES FOR WHICH THE APPLICANT HAS SUBMITTED AN APPLICA-
TION ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN AND THAT TO ITS
REQUEST FOR PARTICIPATION HAS BEEN ACCEPTED UNDER SUBDIVISION SIX OF
SECTION 27-1407 OF THIS TITLE, THE TANGIBLE PROPERTY CREDIT COMPONENT OF
THE BROWNFIELD REDEVELOPMENT TAX CREDIT PURSUANT TO PARAGRAPH THREE OF
SUBDIVISION (A) OF SECTION TWENTY-ONE OF THE TAX LAW SHALL ONLY BE
AVAILABLE TO THE TAXPAYER IF THE CRITERIA FOR RECEIVING SUCH TAX COMPO-
NENT HAVE BEEN MET. FOR THOSE SITES for which the department has issued
a notice to the taxpayer after June twenty-third, two thousand eight
that its request for participation has been accepted under subdivision
six of section 27-1407 of this title[:
For the purposes of calculating], THE APPLICABLE PERCENTAGE FOR the
site preparation credit component pursuant to paragraph two of subdivi-
sion (a) of section twenty-one of the tax law, and the on-site groundwa-
ter remediation credit component pursuant to paragraph four of subdivi-
sion (a) of section twenty-one of the tax law[, the applicable
S. 4209 42
percentage] shall be based on the level of cleanup achieved pursuant to
subdivision four of section 27-1415 of this title and the level of
cleanup of soils to contaminant-specific soil cleanup objectives promul-
gated pursuant to subdivision six of section 27-1415 of this title, up
to a maximum of fifty percent, as follows:
(a) soil cleanup for unrestricted use, the protection of groundwater
or the protection of ecological resources, the applicable percentage
shall be fifty percent;
(b) soil cleanup for residential use, the applicable percentage shall
be forty percent, except for Track 4 which shall be twenty-eight
percent;
(c) soil cleanup for commercial use, the applicable percentage shall
be thirty-three percent, except for Track 4 which shall be twenty-five
percent;
(d) soil cleanup for industrial use, the applicable percentage shall
be twenty-seven percent, except for Track 4 which shall be twenty-two
percent.
S 14. Subdivision 5 of section 27-1419 of the environmental conserva-
tion law, as amended by section 9 of part A of chapter 577 of the laws
of 2004, is amended to read as follows:
5. A certificate of completion issued pursuant to this section may be
transferred [to the applicant's successors or assigns upon transfer or
sale of the brownfield site] BY THE APPLICANT OR SUBSEQUENT HOLDER OF
THE CERTIFICATE OF COMPLETION TO A SUCCESSOR TO A REAL PROPERTY INTER-
EST, INCLUDING LEGAL TITLE, EQUITABLE TITLE OR LEASEHOLD, IN ALL OR A
PART OF THE BROWNFIELD SITE FOR WHICH THE CERTIFICATE OF COMPLETION WAS
ISSUED. NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER TO THE CONTRARY, A
CERTIFICATE OF COMPLETION SHALL NOT BE TRANSFERRED TO A RESPONSIBLE
PARTY. Further, a certificate of completion may be modified or revoked
by the commissioner upon a finding that:
(a) Either the applicant, or the applicant's successors or assigns,
has failed to comply with the terms and conditions of the brownfield
site cleanup agreement;
(b) The applicant made a misrepresentation of a material fact tending
to demonstrate that (I) it was qualified as a volunteer OR (II) MET THE
CRITERIA SET FORTH IN SUBDIVISION ONE-A OF SECTION 27-1407 OF THIS TITLE
FOR THE PURPOSE OF RECEIVING THE TANGIBLE PROPERTY CREDIT COMPONENT OF
THE BROWNFIELD REDEVELOPMENT TAX CREDIT PURSUANT TO PARAGRAPH THREE OF
SUBDIVISION (A) OF SECTION TWENTY-ONE OF THE TAX LAW;
(c) Either the applicant, or the applicant's successors or assigns,
made a misrepresentation of a material fact tending to demonstrate that
the cleanup levels identified in the brownfield site cleanup agreement
were reached; or
(d) There is good cause for such modification or revocation.
S 15. Section 27-1423 of the environmental conservation law is
REPEALED.
S 16. Section 27-1429 of the environmental conservation law, as
amended by section 13 of part A of chapter 577 of the laws of 2004, is
amended to read as follows:
S 27-1429. Permit waivers.
The department[, by and through the commissioner,] shall be EXEMPT,
AND SHALL BE authorized to exempt a person from the requirement to
obtain any state or local permit or other authorization for any activity
needed to implement a program for the investigation and/or remediation
of contamination AT OR EMANATING FROM A BROWNFIELD SITE; provided that
the activity is OR WILL BE conducted in a manner which satisfies all
S. 4209 43
substantive technical requirements applicable to like activity conducted
pursuant to a permit.
S 17. Subdivision 1 of section 27-1431 of the environmental conserva-
tion law is amended by adding a new paragraph c to read as follows:
C. TO INSPECT FOR COMPLIANCE WITH THE SITE MANAGEMENT PLAN APPROVED BY
THE DEPARTMENT, INCLUDING (I) INSPECTION OF THE PERFORMANCE OF MAINTE-
NANCE, MONITORING AND OPERATIONAL ACTIVITIES REQUIRED AS PART OF THE
REMEDIAL PROGRAM FOR THE SITE, (II) INSPECTION FOR THE PURPOSE OF ASCER-
TAINING CURRENT USES OF THE SITE, AND (III) TAKING SAMPLES IN ACCORDANCE
WITH PARAGRAPH A OF THIS SUBDIVISION.
S 17-a. Section 27-1435 of the environmental conservation law is
REPEALED and a new section 27-1435 is added to read as follows:
S 27-1435. REPORTS TO THE DEPARTMENT.
THE DEPARTMENT, IN CONSULTATION WITH THE DEPARTMENT OF TAXATION AND
FINANCE, SHALL, ON OR BEFORE DECEMBER FIRST, TWO THOUSAND FIFTEEN, AND
ON OR BEFORE THE FIRST DAY OF DECEMBER OF EACH YEAR THEREAFTER, REPORT
TO THE GOVERNOR AND TO THE LEGISLATURE ON ITS ASSESSMENT OF THE IMPLE-
MENTATION OF THE STATE'S BROWNFIELD PROGRAMS, TOGETHER WITH ITS
COMMENTS, SUGGESTIONS, AND RECOMMENDATIONS REGARDING SUCH PROGRAMS,
AVAILABLE FUNDING AND RESOURCES, AND THE NEED FOR ANY ADDITIONAL STEPS
TO ENSURE THE FUTURE AVAILABILITY OF FUNDING.
S 18. The environmental conservation law is amended by adding a new
section 27-1435-a to read as follows:
S 27-1435-A. BCP-EZ PROGRAM.
THE APPROPRIATION MADE 1. NOTWITHSTANDING THE PROVISIONS OF THIS TITLE
OR ANY OTHER PROVISION OF LAW, THE DEPARTMENT SHALL PROMULGATE REGU-
LATIONS WHICH AUTHORIZE THE DEPARTMENT TO EXEMPT AN APPLICANT FROM
PROCEDURAL REQUIREMENTS OF THIS TITLE AS THE DEPARTMENT MAY SPECIFY
WHICH ARE OTHERWISE APPLICABLE TO IMPLEMENTATION OF AN INVESTIGATION
AND/OR REMEDIATION OF CONTAMINATION, PROVIDED THAT:
(A) AT THE TIME OF THE APPLICATION, THE DEPARTMENT HAS NOT DETERMINED
THAT THE BROWNFIELD SITE POSES A SIGNIFICANT THREAT PURSUANT TO SECTION
27-1411 OF THIS TITLE;
(B) THE APPLICANT HAS WAIVED IN WRITING ANY CLAIM FOR TAX CREDITS
PURSUANT TO SECTION TWENTY-ONE OF THE TAX LAW ON A FORM PRESCRIBED BY
THE DEPARTMENT; AND
(C) THE ACTIVITY IS CONDUCTED IN A MANNER WHICH SATISFIES ALL SUBSTAN-
TIVE TECHNICAL REQUIREMENTS APPLICABLE TO LIKE ACTIVITY CONDUCTED PURSU-
ANT TO THIS TITLE, INCLUDING MEETING APPLICABLE SOIL CLEANUP OBJECTIVES
ESTABLISHED PURSUANT TO SUBDIVISION SIX OF SECTION 27-1415 OF THIS ARTI-
CLE EXCEPT AS PROVIDED IN SUBDIVISION THREE OF THIS SECTION.
2. WHERE AN EXEMPTION HAS BEEN GRANTED PURSUANT TO SUBDIVISION ONE OF
THIS SECTION, THE APPROVED WORK PLAN FOR A BROWNFIELD SITE SHALL INCLUDE
THE PROCEDURAL REQUIREMENTS THE DEPARTMENT DETERMINES APPROPRIATE BASED
ON SITE SPECIFIC CONSIDERATIONS AND CONSIDERATION OF SECTION 27-1415 OF
THIS TITLE.
3. FOR ANY SITE ACCEPTED INTO THE BCP-EZ PROGRAM PURSUANT TO THIS
SECTION WHICH IS PURSUING A TRACK 4 REMEDIATION, IF A CONTAMINANT IS
IDENTIFIED IN SOIL IN EXCESS OF THE REMEDIAL ACTION OBJECTIVES CONTAINED
IN AN APPLICABLE GENERIC TABLE DEVELOPED PURSUANT TO SUBDIVISION SIX OF
SECTION 27-1415 OF THIS TITLE, THE APPLICANT MAY USE SITE-SPECIFIC DATA
TO DEMONSTRATE TO THE DEPARTMENT THAT THE CONCENTRATION OF THE CONTAM-
INANT IN THE SOILS REFLECTS BACKGROUND CONDITIONS AND, IN THAT CASE, A
CONTAMINANT-SPECIFIC ACTION OBJECTIVE FOR SUCH CONTAMINANT EQUAL TO SUCH
BACKGROUND CONCENTRATION MAY BE ESTABLISHED PROVIDED THAT SUCH OBJECTIVE
S. 4209 44
IS PROTECTIVE OF THE PUBLIC HEALTH AND THE ENVIRONMENT AND IS DETERMINED
IN A MANNER ACCEPTABLE TO THE DEPARTMENT.
4. UPON THE DEPARTMENT'S ACCEPTANCE OF THE CERTIFICATION BY THE APPLI-
CANT THAT THE REMEDIATION REQUIREMENTS OF THIS TITLE HAVE BEEN ACHIEVED
FOR THE BROWNFIELD SITE AND AN ENVIRONMENTAL EASEMENT, IF NECESSARY, HAS
BEEN CREATED AND FILED PURSUANT TO TITLE THIRTY-SIX OF ARTICLE SEVENTY-
ONE OF THIS CHAPTER, A SITE IN THE BCP-EZ SHALL BE ELIGIBLE TO RECEIVE A
CERTIFICATE OF COMPLETION IN ACCORDANCE WITH SECTION 27-1419 OF THIS
TITLE; PROVIDED, HOWEVER, THAT SUCH CERTIFICATE OF COMPLETION SHALL NOT
ENTITLE THE HOLDER TO ANY TAX CREDITS PROVIDED BY SECTION TWENTY-ONE OF
THE TAX LAW.
S 19. The opening paragraph of subdivision 10 of section 71-3605 of
the environmental conservation law, as added by section 2 of part A of
chapter 1 of the laws of 2003, is amended to read as follows:
An environmental easement may be enforced in law or equity by its
grantor, by the state, or any affected local government as defined in
section 71-3603 of this title. Such easement is enforceable against the
owner of the burdened property, any lessees, and any person using the
land. Enforcement shall not be defeated because of any subsequent
adverse possession, laches, estoppel, REVERSION or waiver. No general
law of the state which operates to defeat the enforcement of any inter-
est in real property shall operate to defeat the enforcement of any
environmental easement unless such general law expressly states the
intent to defeat the enforcement of such easement or provides for the
exercise of the power of eminent domain. It is not a defense in any
action to enforce an environmental easement that:
S 20. Intentionally omitted.
S 21. Paragraph 3 of subdivision (a) of section 21 of the tax law, as
amended by chapter 390 of the laws of 2008, is amended to read as
follows:
(3) Tangible property credit component. The tangible property credit
component shall be equal to the applicable percentage of the cost or
other basis for federal income tax purposes of tangible personal proper-
ty and other tangible property, including buildings and structural
components of buildings, which constitute qualified tangible property;
provided[, however,] that in determining the cost or other basis of such
property, the taxpayer shall exclude the acquisition cost of any item of
property with respect to which a credit under this section was allowable
to another taxpayer. WITH RESPECT TO ANY QUALIFIED SITE FOR WHICH THE
TAXPAYER HAS SUBMITTED AN APPLICATION TO PARTICIPATE IN THE BROWNFIELD
CLEANUP PROGRAM ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN AND THAT
IS ELIGIBLE FOR THE FIVE PERCENT AFFORDABLE HOUSING TANGIBLE PROPERTY
CREDIT COMPONENT PURSUANT TO CLAUSE (III) OF SUBPARAGRAPH (B) OF PARA-
GRAPH FIVE OF THIS SUBDIVISION, THAT PORTION OF THE TANGIBLE PROPERTY
CREDIT COMPONENT WILL BE DETERMINED BY MULTIPLYING THE TOTAL COSTS QUAL-
IFIED FOR THE TANGIBLE PROPERTY CREDIT COMPONENT BY A FRACTION, THE
NUMERATOR OF WHICH SHALL BE THE SQUARE FOOTAGE OF SPACE OF THE AFFORDA-
BLE HOUSING UNITS DEDICATED TO RESIDENTIAL OCCUPANCY AND THE DENOMINATOR
OF WHICH SHALL BE THE TOTAL SQUARE FOOTAGE OF THE BUILDING.
The credit component amount so determined shall be allowed for the
taxable year in which such qualified tangible property is placed in
service PROVIDED HOWEVER, THAT SUCH PROPERTY SHALL BE PLACED IN SERVICE
DURING THE ONE HUNDRED TWENTY MONTH PERIOD THAT BEGINS WITH THE FIRST
DAY OF THE FIRST TAXABLE YEAR IN WHICH QUALIFIED TANGIBLE PROPERTY IS
PLACED IN SERVICE on a qualified site with respect to which a certif-
icate of completion has been issued to the taxpayer [for up to ten taxa-
S. 4209 45
ble years after the date of the issuance of such certificate of
completion], OR FOR THE TAXABLE YEAR IN WHICH THE CERTIFICATE OF
COMPLETION IS ISSUED IF THE QUALIFIED TANGIBLE PROPERTY IS PLACED IN
SERVICE PRIOR TO THE ISSUANCE OF THE CERTIFICATE OF COMPLETION. The
tangible property credit component shall be allowed with respect to
property leased to a second party only if such second party is either
(i) not a party responsible for the disposal of hazardous waste or the
discharge of petroleum at the site according to applicable principles of
statutory or common law liability, or (ii) a party responsible according
to applicable principles of statutory or common law liability if such
party's liability arises solely from operation of the site subsequent to
the disposal of hazardous waste or the discharge of petroleum, and is so
certified by the commissioner of environmental conservation at the
request of the taxpayer, pursuant to section 27-1419 of the environ-
mental conservation law. Notwithstanding any other provision of law to
the contrary, in the case of allowance of credit under this section to
such a lessor, the commissioner shall have the authority to reveal to
such lessor any information, with respect to the issue of qualified use
of property by the lessee, which is the basis for the denial in whole or
in part, or for the recapture, of the credit claimed by such lessor. For
purposes of the tangible property credit component allowed under this
section the taxpayer to whom the certificate of completion is issued, as
provided for under subdivision five of section 27-1419 of the environ-
mental conservation law, may transfer the benefits and burdens of the
certificate of completion, which run with the land and to the appli-
cant's successors or assigns upon transfer or sale of all or any portion
of an interest or estate in the qualified site. However, the taxpayer to
whom certificate's benefits and burdens are transferred shall not
include the cost of acquiring all or any portion of an interest or
estate in the site and the amounts included in the cost or other basis
for federal income tax purposes of qualified tangible property already
claimed by the previous taxpayer pursuant to this section.
S 22. 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 SUM OF THE costs included in
the calculation of the site preparation credit component and the on-site
groundwater remediation credit component under paragraphs two and four,
respectively, of this subdivision, AND THE COSTS THAT WOULD HAVE BEEN
INCLUDED IN THE CALCULATION OF SUCH COMPONENTS IF NOT TREATED AS AN
EXPENSE AND DEDUCTED PURSUANT TO SECTION ONE HUNDRED NINETY-EIGHT OF THE
INTERNAL REVENUE CODE, whichever is less; provided, however, that: (1)
in the case of a qualified site to be used primarily for manufacturing
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 SUM OF THE costs
included in the calculation of the site preparation credit component and
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
S. 4209 46
its request for participation has been accepted under subdivision six of
section 27-1407 of the environmental conservation law.
S 23. Subparagraph (D) 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:
(D) [If] WITH RESPECT TO ANY QUALIFIED SITE FOR WHICH THE TAXPAYER HAS
SUBMITTED AN APPLICATION TO PARTICIPATE IN THE BROWNFIELD CLEANUP
PROGRAM, OR WHERE THE TAXPAYER HAS EITHER BEEN ISSUED OR RECEIVED A
CERTIFICATE OF COMPLETION FROM ANOTHER TAXPAYER UNDER SECTION 27-1419 OF
THE ENVIRONMENTAL CONSERVATION LAW BEFORE JANUARY FIRST, TWO THOUSAND
SIXTEEN, IF the qualifying site is located in a brownfield opportunity
area and is developed in conformance with the goals and priorities
established for that applicable brownfield opportunity area as desig-
nated pursuant to section nine hundred seventy-r of the general munici-
pal law, the applicable percentage of the tangible property credit
component will be increased by two percent.
S 24. Intentionally omitted.
S 25. Paragraph 5 of subdivision (a) of section 21 of the tax law, as
amended by section 39 of part A of chapter 59 of the laws of 2004, is
amended to read as follows:
(5) Applicable percentage. (A) For purposes of COMPUTING THE SITE
PREPARATION AND ON-SITE GROUNDWATER REMEDIATION CREDIT COMPONENTS PURSU-
ANT TO paragraphs two[, three] and four of this subdivision, WITH
RESPECT TO SUCH QUALIFIED SITES FOR WHICH THE DEPARTMENT OF ENVIRON-
MENTAL 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 ENVIRON-
MENTAL CONSERVATION LAW, OR WHERE THE TAXPAYER HAS EITHER BEEN ISSUED OR
RECEIVED A CERTIFICATE OF COMPLETION FROM ANOTHER TAXPAYER UNDER SECTION
27-1419 OF THE ENVIRONMENTAL CONSERVATION LAW BEFORE JUNE TWENTY-THIRD,
TWO THOUSAND EIGHT, AND, FOR PURPOSES OF COMPUTING THE TANGIBLE PROPERTY
COMPONENT PURSUANT TO PARAGRAPH THREE OF THIS SUBDIVISION WITH RESPECT
TO SUCH QUALIFIED SITES FOR WHICH THE TAXPAYER HAS SUBMITTED AN APPLICA-
TION TO PARTICIPATE IN THE BROWNFIELD CLEANUP PROGRAM BEFORE JANUARY
FIRST, TWO THOUSAND SIXTEEN, OR WHERE THE TAXPAYER HAS EITHER BEEN
ISSUED OR RECEIVED A CERTIFICATE OF COMPLETION FROM ANOTHER TAXPAYER
UNDER SECTION 27-1419 OF THE ENVIRONMENTAL CONSERVATION LAW BEFORE JANU-
ARY FIRST, TWO THOUSAND SIXTEEN, the applicable percentage shall be
twelve percent in the case of credits claimed under article nine, nine-A
or thirty-three of this chapter, and ten percent in the case of credits
claimed under article twenty-two of this chapter, except that where at
least fifty percent of the area of the qualified site relating to the
credit provided for in this section is located in an environmental zone
as defined in paragraph six of subdivision (b) of this section, the
applicable percentage shall be increased by an additional eight percent.
Provided, however, as afforded in section 27-1419 of the environmental
conservation law, if the certificate of completion indicates that the
qualified site has been remediated to Track 1 as that term is described
in subdivision four of section 27-1415 of the environmental conservation
law, the applicable percentage set forth in the first sentence of this
paragraph shall be increased by an additional two percent.
(B) WITH RESPECT TO SUCH QUALIFIED SITE FOR WHICH THE TAXPAYER HAS
SUBMITTED AN APPLICATION TO PARTICIPATE IN THE BROWNFIELD CLEANUP
PROGRAM, THE APPLICABLE PERCENTAGE FOR THE TANGIBLE PROPERTY CREDIT
COMPONENT OF THE BROWNFIELD REDEVELOPMENT TAX CREDIT PURSUANT TO PARA-
GRAPH THREE OF SUBDIVISION (A) OF THIS SECTION SHALL BE THE SUM OF TEN
S. 4209 47
PERCENT AND THE FOLLOWING ADDITIONAL PERCENTAGES, PROVIDED THAT THE
TOTAL PERCENTAGE OF THE TANGIBLE PROPERTY CREDIT COMPONENT SHALL NOT
EXCEED TWENTY-FOUR PERCENT AND IS OTHERWISE SUBJECT TO THE LIMITATIONS
SET FORTH IN PARAGRAPHS THREE AND THREE-A OF SUBDIVISION (A) OF THIS
SECTION:
(I) FIVE PERCENT FOR A SITE WITHIN AN ENVIRONMENTAL ZONE;
(II) FIVE PERCENT FOR A SITE LOCATED WITHIN A DESIGNATED BROWNFIELD
OPPORTUNITY AREA;
(III) FIVE PERCENT FOR A SITE DEVELOPED AS AN AFFORDABLE HOUSING
PROJECT, AS DEFINED IN SECTION 27-1405 OF THE ENVIRONMENTAL CONSERVATION
LAW; AND
(IV) FIVE PERCENT FOR A SITE TO BE USED PRIMARILY FOR MANUFACTURING
ACTIVITIES AS SUCH TERM IS DEFINED IN SUBPARAGRAPH (B) OF PARAGRAPH
THREE-A OF THIS SUBDIVISION.
(C) THE TAXPAYER SHALL SUBMIT, IN THE MANNER PRESCRIBED BY THE COMMIS-
SIONER, INFORMATION SUFFICIENT TO DEMONSTRATE THAT THE SITE QUALIFIES
FOR ANY CREDIT COMPONENTS AVAILABLE UNDER SUBPARAGRAPH (B) OF THIS PARA-
GRAPH.
S 26. Intentionally omitted.
S 27. Paragraphs 2 and 6 of subdivision (b) of section 21 of the tax
law, as amended by section 1 of part H of chapter 577 of the laws of
2004 and subparagraph (B) and the closing paragraph of paragraph 6 as
amended by section 1 of part G of chapter 62 of the laws of 2006, are
amended to read as follows:
(2) Site preparation costs. The term "site preparation costs" shall
mean all amounts properly chargeable to a capital account, (i) which are
paid [or] WITHIN SIX MONTHS OF THE DATE THE EXPENSE IS incurred in
connection with a site's qualification for a certificate of completion,
and (ii) all other site preparation costs paid or incurred in connection
with preparing a site for the erection of a building or a component of a
building, or otherwise to establish a site as usable for its industrial,
commercial (including the commercial development of residential hous-
ing), recreational or conservation purposes. Site preparation costs
shall include, but not be limited to, the costs of excavation, temporary
electric wiring, scaffolding, demolition costs, and the costs of fencing
and security facilities AND MAY INCLUDE COSTS ATTRIBUTABLE TO ACTIVITIES
UNDERTAKEN UNDER THE OVERSIGHT OF THE DEPARTMENT OF LABOR OR IN ACCORD-
ANCE WITH STANDARDS ESTABLISHED BY THE DEPARTMENT OF HEALTH TO REMEDIATE
REGULATED MATERIALS INCLUDING ASBESTOS, LEAD OR POLYCHLORINATED BIPHE-
NYLS IN BUILDINGS WHICH WILL REMAIN ON THE SITE. Site preparation costs
shall not include the cost of acquiring the site and shall not include
amounts included in the cost or other basis for federal income tax
purposes of qualified tangible property, as described in paragraph three
of this subdivision.
(6) Environmental zones (EN-Zones). An "environmental zone" shall mean
an area designated as such by the commissioner of [economic development]
LABOR. Such areas [so designated are areas which are] SHALL BE census
tracts [and block numbering areas which, as of the two thousand census,]
THAT satisfy either of the following criteria:
(A) areas that have both:
(i) a poverty rate of at least twenty percent [for the year to which
the data relate] BASED ON THE MOST RECENT FIVE YEAR AMERICAN COMMUNITY
SURVEY; and
(ii) an unemployment rate of at least one and one-quarter times the
statewide unemployment rate [for the year to which the data relate]
BASED ON THE MOST RECENT FIVE YEAR AMERICAN COMMUNITY SURVEY, or;
S. 4209 48
(B) areas that have a poverty rate of at least two times the poverty
rate for the county in which the areas are located [for the year to
which the data relate provided, however, that a qualified site shall
only be deemed to be located in an environmental zone under this subpar-
agraph (B) if such site was the subject of a brownfield site cleanup
agreement pursuant to section 27-1409 of the environmental conservation
law that was entered into prior to September first, two thousand ten]
BASED ON THE MOST RECENT FIVE YEAR AMERICAN COMMUNITY SURVEY.
Such designation shall be made and a list of all such environmental
zones shall be established by the commissioner of [economic development
no later than December thirty-first, two thousand four provided, howev-
er, that a qualified site shall only be deemed to be located in an envi-
ronmental zone under subparagraph (B) of this paragraph if such site was
the subject of a brownfield site cleanup agreement pursuant to section
27-1409 of the environmental conservation law that was entered into
prior to September first, two thousand ten] LABOR BASED ON THE TWO THOU-
SAND NINE THROUGH TWO THOUSAND THIRTEEN AMERICAN COMMUNITY SURVEY ESTI-
MATE. UPON REQUEST OF THE COMMISSIONER OF ENVIRONMENTAL CONSERVATION,
THE COMMISSIONER OF LABOR SHALL UPDATE SUCH DESIGNATION BASED ON THE
MOST RECENT AMERICAN COMMUNITY SURVEY, OR ITS SUCCESSOR.
THE DETERMINATION OF WHETHER A SITE IS LOCATED IN AN ENVIRONMENTAL
ZONE SHALL BE BASED ON THE DATE THE DEPARTMENT OF ENVIRONMENTAL CONSER-
VATION ISSUED A NOTICE TO THE TAXPAYER THAT ITS REQUEST FOR PARTIC-
IPATION IN THE BROWNFIELD CLEANUP PROGRAM HAS BEEN DEEMED COMPLETE
PURSUANT TO SUBDIVISION THREE OF SECTION 27-1407 OF THE ENVIRONMENTAL
CONSERVATION LAW.
S 28. Section 171-r of the tax law is amended by adding a new subdivi-
sion (e) to read as follows:
(E) THE COMMISSIONER, IN CONSULTATION WITH THE COMMISSIONER OF ENVI-
RONMENTAL CONSERVATION, SHALL PUBLISH BY JANUARY THIRTY-FIRST, TWO THOU-
SAND SIXTEEN A SUPPLEMENTAL BROWNFIELD CREDIT REPORT CONTAINING THE
INFORMATION REQUIRED BY THIS SECTION ABOUT THE CREDITS CLAIMED FOR THE
YEARS TWO THOUSAND FIVE, TWO THOUSAND SIX, AND TWO THOUSAND SEVEN.
S 29. Section 171-s of the tax law is REPEALED.
S 30. Paragraph b of subdivision 2 of section 970-r of the general
municipal law, as added by section 1 of part F of chapter 1 of the laws
of 2003, is amended to read as follows:
b. Activities eligible to receive such assistance shall include, but
are not limited to, the assembly and development of basic information
about:
(1) the borders of the [proposed] brownfield opportunity area;
(2) the number and size of KNOWN OR SUSPECTED brownfield sites;
(3) current and anticipated uses of the properties in the [proposed]
BROWNFIELD OPPORTUNITY area;
(4) current and anticipated future conditions of groundwater in the
[proposed] BROWNFIELD OPPORTUNITY area;
(5) known data about the environmental conditions of the properties in
the [proposed] BROWNFIELD OPPORTUNITY area;
(6) ownership of the properties in the [proposed] BROWNFIELD OPPORTU-
NITY area AND WHETHER THE OWNERS WOULD LIKE TO PARTICIPATE DIRECTLY IN
THE BROWNFIELD OPPORTUNITY PLANNING PROCESS; and
(7) preliminary descriptions of possible remediation strategies, reuse
opportunities, necessary infrastructure improvements and other public or
private measures needed to stimulate investment, promote revitalization,
and enhance community health and environmental conditions.
S. 4209 49
S 31. Subparagraphs 2 and 5 of paragraph c of subdivision 2 of section
970-r of the general municipal law, as added by section 1 of part F of
chapter 1 of the laws of 2003, are amended to read as follows:
(2) areas with concentrations of KNOWN OR SUSPECTED brownfield sites;
(5) areas with KNOWN OR SUSPECTED brownfield sites presenting strate-
gic opportunities to stimulate economic development, community revitali-
zation or the siting of public amenities.
S 32. Paragraph a of subdivision 3 of section 970-r of the general
municipal law, as amended by chapter 390 of the laws of 2008, is amended
to read as follows:
a. Within the limits of appropriations therefor, the secretary is
authorized to provide, on a competitive basis, financial assistance to
municipalities, to community based organizations, to community boards,
or to municipalities and community based organizations acting in cooper-
ation to prepare a nomination for designation of a brownfield opportu-
nity area. Such financial assistance shall not exceed ninety percent of
the costs of such nomination for any such area. A NOMINATION STUDY MUST
INCLUDE SUFFICIENT INFORMATION TO DESIGNATE THE BROWNFIELD OPPORTUNITY
AREA. THE CONTENTS OF THE NOMINATION STUDY SHALL BE DEVELOPED BASED ON
PRE-NOMINATION STUDY INFORMATION, WHICH SHALL PRINCIPALLY CONSIST OF AN
AREA-WIDE STUDY, DOCUMENTING THE HISTORIC BROWNFIELD USES IN THE AREA
PROPOSED FOR DESIGNATION. A NOMINATION STUDY IS NOT INTENDED TO BE
EQUIVALENT TO OR TO SERVE AS A MASTER PLAN, COMPREHENSIVE PLAN, OR OTHER
EQUIVALENT LAND USE STUDY, BUT RATHER IS INTENDED TO BE A BASIC PLAN FOR
DESIGNATION OF THE BROWNFIELD OPPORTUNITY AREA BASED ON HISTORIC BROWN-
FIELD USE INFORMATION AND THE COMMUNITY PARTICIPATION REQUIRED IN THIS
SECTION. A MASTER PLAN, COMPREHENSIVE PLAN OR EQUIVALENT LAND USE STUDY
MAY BE SEPARATELY DEVELOPED UNDER THIS PROGRAM AS AN IMPLEMENTATION
STRATEGY FOR THE FINAL BROWNFIELD OPPORTUNITY AREA PLAN. SINCE A NOMI-
NATION STUDY IS NOT EQUIVALENT TO A FINAL LAND USE PLAN, THE PREPARATION
OF THE NOMINATION STUDY DOES NOT REQUIRE REVIEW UNDER THE ENVIRONMENTAL
QUALITY REVIEW ACT PURSUANT TO ARTICLE EIGHT OF THE ENVIRONMENTAL
CONSERVATION LAW, AND A BROWNFIELD OPPORTUNITY AREA CAN BE DESIGNATED
BASED EXCLUSIVELY ON A NOMINATION STUDY. IN THE EVENT THE MUNICIPALITY
AND/OR COMMUNITY BASED ORGANIZATION ELECT TO DEVELOP IMPLEMENTATION
STRATEGIES, INCLUDING BUT NOT LIMITED TO A MASTER PLAN, COMPREHENSIVE
PLAN OR URBAN RENEWAL PLAN, REVIEW UNDER THE ENVIRONMENTAL QUALITY
REVIEW ACT UNDER ARTICLE EIGHT OF THE ENVIRONMENTAL CONSERVATION LAW IS
REQUIRED. NO SUCH NOMINATION STUDY SHALL SUPERSEDE AN EXISTING MASTER
PLAN OR EQUIVALENT LAND AND USE STUDY.
S 33. Subparagraphs 2 and 5 of paragraph e of subdivision 3 and subdi-
vision 4 of section 970-r of the general municipal law, subparagraphs 2
and 5 of paragraph e of subdivision 3 as added by section 1 of part F of
chapter 1 of the laws of 2003 and subdivision 4 as amended by chapter
390 of the laws of 2008, are amended to read as follows:
(2) areas with concentrations of KNOWN OR SUSPECTED brownfield sites;
(5) areas with KNOWN OR SUSPECTED brownfield sites presenting strate-
gic opportunities to stimulate economic development, community revitali-
zation or the siting of public amenities.
4. Designation of brownfield opportunity area. Upon completion of a
nomination for designation of a brownfield opportunity area, it shall be
forwarded by the applicant to the secretary, who shall determine whether
it is consistent with the provisions of this section. THE SECRETARY MAY
REVIEW AND APPROVE A NOMINATION FOR DESIGNATION OF A BROWNFIELD OPPORTU-
NITY AREA AT ANY TIME. If the secretary determines that the nomination
is consistent with the provisions of this section, the brownfield oppor-
S. 4209 50
tunity area shall be designated. If the secretary determines that the
nomination is not consistent with the provisions of this section, the
secretary shall make recommendations in writing to the applicant of the
manner and nature in which the nomination should be amended.
S 34. The subdivision heading, paragraph a and subparagraphs 2 and 5
of paragraph c of subdivision 6 of section 970-r of the general munici-
pal law, the subdivision heading and subparagraphs 2 and 5 of paragraph
c as added by section 1 of part F of chapter 1 of the laws of 2003, and
paragraph a as amended by chapter 386 of the laws of 2007, are amended
to read as follows:
State assistance for brownfield site assessments in brownfield oppor-
tunity areas. a. Within the limits of appropriations therefor, the
commissioner, in consultation with the secretary of state, is authorized
to provide, on a competitive basis, financial assistance to munici-
palities, to community based organizations, to community boards, or to
municipalities and community based organizations acting in cooperation
to conduct brownfield site assessments [in a brownfield opportunity area
designated pursuant to this section]. Such financial assistance shall
not exceed ninety percent of the costs of such brownfield site assess-
ment.
(2) areas with concentrations of KNOWN OR SUSPECTED brownfield sites;
(5) areas with KNOWN OR SUSPECTED brownfield sites presenting strate-
gic opportunities to stimulate economic development, community revitali-
zation or the siting of public amenities.
S 35. Intentionally omitted.
S 36. Section 31 of part H of chapter 1 of the laws of 2003, amending
the tax law relating to brownfield redevelopment tax credits, remediated
brownfield credit for real property taxes for qualified sites and envi-
ronmental remediation insurance credits, as amended by chapter 474 of
the laws of 2012, is amended to read as follows:
S 31. The tax credits allowed under section [21,] 22 or 23 of the tax
law and the corresponding provisions in articles 9, 9-A, 22, [32] and 33
of the tax law, as added by the provisions of sections one through twen-
ty-nine of this act, shall not be applicable [if] TO ANY SITE FOR WHICH
AN APPLICATION HAS BEEN FILED BY THE TAXPAYER FOR PARTICIPATION INTO THE
BROWNFIELD CLEANUP PROGRAM ON AND AFTER DECEMBER 31, 2025. THE TAX CRED-
ITS ALLOWED UNDER SECTION 21 OF THE TAX LAW AND THE CORRESPONDING
PROVISIONS IN ARTICLES 9, 9-A, 22, AND 33 OF THE TAX LAW, AS ADDED BY
THE PROVISIONS OF SECTIONS ONE THROUGH TWENTY-NINE OF THIS ACT, SHALL
NOT BE APPLICABLE TO ANY SITE ACCEPTED INTO THE BROWNFIELD CLEANUP
PROGRAM AFTER DECEMBER 31, 2022, PROVIDED, HOWEVER THAT ANY SITES
ACCEPTED ON OR BEFORE DECEMBER 31, 2022 MUST HAVE RECEIVED the [remedi-
ation] certificate OF COMPLETION required to qualify for any of such
credits [is issued after] BY December 31, [2015] 2025.
S 37. Notwithstanding any other provision of this act, any site for
which a brownfield cleanup agreement with the department of environ-
mental conservation was entered into (1) prior to June 23, 2008 and
which has not received a certificate of completion by December 31, 2019
or (2) on or after June 23, 2008 and prior to January 1, 2016 and which
has not received a certificate of completion by December 31, 2021, shall
be treated for the purposes of this act as a site for which an applica-
tion has been filed after July 1, 2014.
S 38. Paragraph c of subdivision 3 of section 27-0923 of the environ-
mental conservation law, as amended by section 5 of part I of chapter
577 of the laws of 2004, is amended to read as follows:
S. 4209 51
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 OR UNDER AN ORDER OF OR AGREEMENT WITH THE UNITED STATES ENVI-
RONMENTAL PROTECTION AGENCY OR AN ORDER OF A COURT OF COMPETENT JURIS-
DICTION, RELATED TO A FACILITY ADDRESSED PURSUANT TO THE COMPREHENSIVE
ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT (42 U.S.C. 9601
ET SEQ.) OR UNDER A WRITTEN AGREEMENT WITH A MUNICIPALITY WHICH IS
SUBJECT TO A MEMORANDUM OF AGREEMENT WITH THE DEPARTMENT RELATED TO THE
REMEDIATION OF BROWNFIELD SITES.
S 39. Subparagraphs (i) and (vi) of paragraph d of subdivision 1 of
section 72-0402 of the environmental conservation law, as amended by
chapter 99 of the laws of 2010, are amended to read as follows:
(i) under a contract with the department, or with the department's
written approval and in compliance with department regulations, or
pursuant to an order of the department, the United States environmental
protection agency or a court OF COMPETENT JURISDICTION, related to the
cleanup or remediation of a hazardous materials or hazardous waste
spill, discharge, or surficial cleanup, pursuant to this chapter; or
(vi) under a brownfield site cleanup agreement with the department
pursuant to section 27-1409 of this chapter OR UNDER AN AGREEMENT WITH A
MUNICIPALITY WHICH IS SUBJECT TO A MEMORANDUM OF AGREEMENT WITH THE
DEPARTMENT RELATED TO THE REMEDIATION OF BROWNFIELD SITES; or
S 40. Section 56-0501 of the environmental conservation law, as added
by chapter 413 of the laws of 1996, is amended to read as follows:
S 56-0501. Allocation of moneys.
1. Of the moneys received by the state from the sale of bonds pursuant
to the Clean Water/Clean Air Bond Act of 1996, two hundred million
dollars ($200,000,000) shall be available for disbursements for environ-
mental restoration projects.
2. ENVIRONMENTAL RESTORATION PROJECTS MAY BE FUNDED USING THE PROCEEDS
OF BONDS ISSUED PURSUANT TO SECTION TWELVE HUNDRED EIGHTY-FIVE-Q OF THE
PUBLIC AUTHORITIES LAW.
S 41. Subdivision 6 of section 56-0502 of the environmental conserva-
tion law, as amended by section 2 of part D of chapter 577 of the laws
of 2004, is amended to read as follows:
6. "State assistance", for purposes of this title, shall mean in the
case of a contract authorized by subdivision one of section 56-0503 of
this title, payments made to a municipality to reimburse the munici-
pality for the state share of the costs incurred by the municipality to
undertake an environmental restoration project OR IN THE CASE OF AN
AGREEMENT AUTHORIZED BY SUBDIVISION THREE OF SECTION 56-0503 OF THIS
TITLE, COSTS INCURRED BY THE STATE TO UNDERTAKE AN ENVIRONMENTAL RESTO-
RATION PROJECT BUT NOT REIMBURSED BY A MUNICIPALITY.
S 42. Paragraph (c) of subdivision 2 of section 56-0503 of the envi-
ronmental conservation law, as amended by section 4 of part D of chapter
1 of the laws of 2003, is amended and a new subdivision 3 is added to
read as follows:
(c) A provision that THE MUNICIPALITY SHALL ASSIST IN IDENTIFYING A
RESPONSIBLE PARTY BY SEARCHING LOCAL RECORDS, INCLUDING PROPERTY TAX
ROLLS, OR DOCUMENT REVIEWS, AND if, in accordance with the required
departmental approval of any settlement with a responsible party, any
responsible party payments become available to the municipality, before,
during or after the completion of an environmental restoration project,
S. 4209 52
which were not included when the state share was calculated pursuant to
this section, the state assistance share shall be recalculated, and the
municipality shall pay to the state, for deposit into the environmental
restoration project account of the hazardous waste remedial fund estab-
lished under section ninety-seven-b of the state finance law, the
difference between the original state assistance payment and the recal-
culated state share. Recalculation of the state share shall be done each
time a payment from a responsible party is received by the municipality;
3. THE DEPARTMENT MAY UNDERTAKE AN ENVIRONMENTAL RESTORATION PROJECT
ON BEHALF OF A MUNICIPALITY UPON REQUEST. IF THE DEPARTMENT UNDERTAKES
THE PROJECT ON BEHALF OF THE MUNICIPALITY, THE STATE SHALL ENTER INTO AN
AGREEMENT WITH THE MUNICIPALITY AND THE AGREEMENT SHALL REQUIRE THE
MUNICIPALITY TO PERIODICALLY PROVIDE ITS SHARE TO THE STATE FOR COSTS
INCURRED DURING THE PROGRESS OF SUCH PROJECT. THE MUNICIPALITY'S SHARE
SHALL BE THE SAME AS WOULD BE REQUIRED UNDER SUBDIVISION ONE OF THIS
SECTION. THE AGREEMENT SHALL INCLUDE ALL PROVISIONS SPECIFIED IN SUBDI-
VISION TWO OF THIS SECTION AS APPROPRIATE. FOR PURPOSES OF PROJECTS
SUBJECT TO AGREEMENTS UNDER THIS SUBDIVISION, ALL REFERENCES TO
CONTRACTS IN THIS TITLE SHALL ALSO APPLY TO AGREEMENTS UNDER THIS SUBDI-
VISION AS APPROPRIATE.
S 43. Subdivision 4 of section 56-0505 of the environmental conserva-
tion law, as amended by section 5 of part D of chapter 1 of the laws of
2003, is amended to read as follows:
4. After completion of such project, the municipality may use the
property for public purposes or may dispose of it. If the municipality
shall dispose of such property by sale to a responsible party, such
party shall pay to such municipality, in addition to such other consid-
eration, an amount of money constituting the amount of state assistance
provided [to the municipality] under this title plus accrued interest
and transaction costs and the municipality shall deposit that money into
the environmental restoration project account of the hazardous waste
remedial fund established under section ninety-seven-b of the state
finance law.
S 44. Subdivisions 3 and 4 of section 56-0508 of the environmental
conservation law, as added by section 7 of part D of chapter 1 of the
laws of 2003, are amended to read as follows:
3. such temporary incidents of ownership by such taxing district shall
also qualify it as being the owner of such property [for the purposes of
obtaining] TO BE ELIGIBLE FOR funding from the state of New York for
such environmental restoration investigation project under this article
or for such funding from any source pursuant to any other state, feder-
al, or local law, but such incidents of ownership shall not be suffi-
cient to qualify it as the owner of such property for the purposes of
holding it wholly or partially liable for any damages, past, present, or
future from any release of any hazardous material, substance, or contam-
inant into the air, ground, or water, unless such release was caused by
such taxing district.
4. within thirty days of the completion of the environmental restora-
tion investigation project and the receipt by the taxing jurisdiction of
the final report of such investigation, such taxing jurisdiction shall
file such report with the court on notice to the court and all other
parties of record, and the stay of the foreclosure shall be lifted
(unless lifted earlier by a prior court order), and all incidents of
temporary ownership of the taxing jurisdiction that was awarded such
taxing district, except any right [to receive funding] for the environ-
mental restoration investigation project TO BE FUNDED, shall cease to
S. 4209 53
exist, and nothing in this subdivision shall preclude the taxing juris-
diction that conducted the environmental restoration investigation
project or the taxing jurisdiction that commenced the foreclosure
action, if it is a different taxing jurisdiction than the taxing juris-
diction which conducted the investigation, from withdrawing the parcel
from foreclosure pursuant to section eleven hundred thirty-eight of the
real property tax law.
S 45. Subdivision 2 and paragraph (f) of subdivision 3 of section 97-b
of the state finance law, as amended by section 4 of part I of chapter 1
of the laws of 2003, are amended to read as follows:
2. Such fund shall consist of all of the following:
(a) moneys appropriated for transfer to the fund's site investigation
and construction account; (b) all fines and other sums accumulated in
the fund prior to April first, nineteen hundred eighty-eight pursuant to
section 71-2725 of the environmental conservation law for deposit in the
fund's site investigation and construction account; (c) all moneys
collected or received by the department of taxation and finance pursuant
to section 27-0923 of the environmental conservation law for deposit in
the fund's industry fee transfer account; (d) all moneys paid into the
fund pursuant to section 72-0201 of the environmental conservation law
which shall be deposited in the fund's industry fee transfer account;
(e) all moneys paid into the fund pursuant to section one hundred eight-
y-six of the navigation law which shall be deposited in the fund's
industry fee transfer account; (f) [all moneys paid into the fund by
municipalities for repayment of landfill closure loans made pursuant to
title five of article fifty-two of the environmental conservation law
for deposit in the fund's site investigation and construction account;
(g)] all monies recovered under sections 56-0503, 56-0505 and 56-0507 of
the environmental conservation law into the fund's environmental resto-
ration project account; [(h) all] (G) fees paid into the fund pursuant
to section [72-0403] 72-0402 of the environmental conservation law which
shall be deposited in the fund's industry fee transfer account; [(i)]
(H) payments received for all state costs incurred in negotiating and
overseeing the implementation of brownfield site cleanup agreements
pursuant to title fourteen OF ARTICLE TWENTY-SEVEN of the environmental
conservation law shall be deposited in the hazardous waste remediation
oversight and assistance account; and [(j)] (I) other moneys credited or
transferred thereto from any other fund or source for deposit in the
fund's site investigation and construction account.
(f) to undertake such remedial measures as the department of environ-
mental conservation may determine necessary due to environmental condi-
tions related to the property subject to an agreement [to provide state
assistance] OR CONTRACT under title five of article fifty-six of the
environmental conservation law [that were unknown to such department at
the time of its approval of such agreement which indicates that condi-
tions on such property are not sufficiently protective of human health
for its reasonably anticipated uses or due to information received, in
whole or in part, after such department's approval of such agreement's
final engineering report and certification], which indicates that such
agreement's remedial activities are not sufficiently protective of human
health for such property's reasonably anticipated uses; and, [respecting
the monies in the environmental restoration project account in excess of
ten million dollars,] shall provide state assistance under title five of
article fifty-six of the environmental conservation law;
S. 4209 54
S 46. Subdivisions 1 and 3 of section 27-1421 of the environmental
conservation law, as amended by section 10 of part A of chapter 577 of
the laws of 2004, are amended to read as follows:
1. Notwithstanding any other provision of law and except as provided
in subdivision two of this section, after the department has issued a
certificate of completion for a brownfield site, the applicant shall not
be liable to the state upon any statutory or common law cause of action,
arising out of the presence of any contamination in, on or emanating
from the brownfield site that was the subject of such certificate at any
time before the effective date of a brownfield site cleanup agreement
entered into pursuant to this title, except that a participant shall not
receive a release for natural resource damages that may be available
under law UNLESS THE DEPARTMENT IS SATISFIED THAT THE NATURAL RESOURCE
DAMAGED OR DESTROYED BY THE CONTAMINATION AT THE SITE WAS ADEQUATELY
REPAIRED, RESTORED AND/OR REPLACED AS PART OF THE BROWNFIELD SITE CLEAN-
UP IMPLEMENTED BY THE PARTICIPANT.
3. The liability limitation provided pursuant to this section shall
run with the land, extending to the applicant's successors or assigns
through acquisition of title to the brownfield site, TO LENDERS WHO
ACQUIRE INDICIA OR OWNERSHIP PRIMARILY TO PROTECT THE LENDERS' SECURITY
INTEREST IN THE BROWNFIELD SITE AFTER THE EFFECTIVE DATE OF THE BROWN-
FIELD SITE CLEANUP AGREEMENT FOR THE SITE, and to a person who develops
or otherwise occupies the brownfield site; provided that such persons
act with due care and in good faith to adhere to the requirements of the
brownfield site cleanup agreement and certificate of completion. Howev-
er, such liability limitation does not extend, and cannot be trans-
ferred, to a person who is responsible for the disposal or the discharge
of contaminants on such site according to applicable principles of stat-
utory or common law liability as of the effective date of the certif-
ication of completion issued pursuant to this title, unless that person
was party to the brownfield site cleanup agreement for the brownfield
site pursuant to this article.
S 47. Severability. If any clause, sentence, paragraph, subdivision,
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 judgment 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 48. This act shall take effect immediately and shall apply to a
qualified site for which the commissioner of environmental conservation
has issued a notice to the taxpayer or other applicant after January 1,
2016 that its request for participation has been accepted under subdivi-
sion 6 of section 27-1407 of the environmental conservation law;
provided, however, that the department of labor shall update the envi-
ronmental zones as required by section twenty-seven of this act within
ninety days of this act becoming law.
PART S
Section 1. Paragraph (r) of section 104-A of the business corporation
law, as amended by chapter 172 of the laws of 2000, is amended to read
as follows:
S. 4209 55
(r) For filing a statement or amendment pursuant to section four
hundred eight of this chapter WITH THE DEPARTMENT OF STATE, nine
dollars.
S 2. Paragraphs (b) and (c) of section 306-A of the business corpo-
ration law, as added by chapter 469 of the laws of 1997, are amended to
read as follows:
(b) Upon the failure of the designating corporation to file a certif-
icate of amendment or change providing for the designation by the corpo-
ration of the new address after the filing of a certificate of resigna-
tion for receipt of process with the secretary of state, its authority
to do business in this state shall be suspended unless the corporation
has previously filed a statement [of addresses and directors] under
section four hundred eight of this chapter, IN WHICH CASE the address of
the principal executive office stated in the last filed statement [of
addresses and directors], shall constitute the new address for process
of the corporation PROVIDED SUCH ADDRESS IS DIFFERENT FROM THE PREVIOUS
ADDRESS FOR PROCESS, and the corporation shall not be deemed suspended.
(c) The filing by the department of state of a certificate of amend-
ment or change OR STATEMENT UNDER SECTION FOUR HUNDRED EIGHT OF THIS
CHAPTER providing for a new address by a designating corporation shall
annul the suspension and its authority to do business in this state
shall be restored and continue as if no suspension had occurred.
S 3. Section 408 of the business corporation law, as added by chapter
55 of the laws of 1992, the section heading as amended by chapter 375 of
the laws of 1998, subparagraph (a) of paragraph 1 and paragraph 2 as
amended by chapter 172 of the laws of 1999, subparagraph (b) of para-
graph 3 as amended by chapter 170 of the laws of 1994, paragraph 6 as
added by chapter 469 of the laws of 1997, and paragraph 7 as added by
chapter 172 of the laws of 2000, is amended to read as follows:
S 408. [Biennial statement] STATEMENT; filing.
1. [Each] EXCEPT AS PROVIDED IN PARAGRAPH EIGHT OF THIS SECTION, EACH
domestic corporation, and each foreign corporation authorized to do
business in this state, shall, during the applicable filing period as
determined by subdivision three of this section, file a statement
setting forth:
(a) The name and business address of its chief executive officer.
(b) The street address of its principal executive office.
(c) The post office address within or without this state to which the
secretary of state shall mail a copy of any process against it served
upon him or her. Such address shall supersede any previous address on
file with the department of state for this purpose.
2. [Such] EXCEPT AS PROVIDED IN PARAGRAPH EIGHT OF THIS SECTION, SUCH
statement shall be made on forms prescribed by the secretary of state,
and the information therein contained shall be given as of the date of
the execution of the statement. Such statement shall only request
reporting of information required under paragraph one of this section.
It shall be signed and delivered to the department of state.
3. [For] EXCEPT AS PROVIDED IN PARAGRAPH EIGHT OF THIS SECTION, FOR
the purpose of this section the applicable filing period for a corpo-
ration shall be the calendar month during which its original certificate
of incorporation or application for authority were filed or the effec-
tive date thereof if stated. The applicable filing period shall only
occur: (a) annually, during the period starting on April 1, 1992 and
ending on March 31, 1994; and (b) biennially, during a period starting
on April 1 and ending on March 31 thereafter. Those corporations that
filed between April 1, 1992 and June 30, 1994 shall not be required to
S. 4209 56
file such statements again until such time as they would have filed, had
this subdivision not been amended.
4. The provisions of [subdivision eleven of section ninety-six of the
executive law and] paragraph (g) of section one hundred four of this
chapter shall not be applicable to filings pursuant to this section.
5. The provisions of this section and section 409 of this article
shall not apply to a farm corporation. For the purposes of this subdivi-
sion, the term "farm corporation" shall mean any domestic corporation or
foreign corporation authorized to do business in this state under this
chapter engaged in the production of crops, livestock and livestock
products on land used in agricultural production, as defined in section
301 of the agriculture and markets law. HOWEVER, THIS EXCEPTION FOR FARM
CORPORATIONS SHALL NOT BE APPLICABLE IF AN AGREEMENT IS MADE PURSUANT TO
PARAGRAPH EIGHT OF THIS SECTION SO THAT THESE STATEMENTS WILL BE FILED
WITH THE DEPARTMENT OF TAXATION AND FINANCE.
6. No such statement shall be accepted for filing when a certificate
of resignation for receipt of process has been filed under section three
hundred six-A of this chapter unless the corporation has stated a
different address for process which does not include the name of the
party previously designated in the address for process in such certif-
icate.
7. A domestic corporation or foreign corporation may amend its state-
ment to change the information required by [subdivisions] SUBPARAGRAPHS
(a) and (b) of paragraph one of this section. Such amendment shall be
made on forms prescribed by the secretary of state. It shall be signed
and delivered to the department of state.
8. (A) THE COMMISSIONER OF TAXATION AND FINANCE AND THE SECRETARY OF
STATE MAY AGREE TO ALLOW CORPORATIONS TO PROVIDE THE STATEMENT SPECIFIED
IN PARAGRAPH ONE OF THIS SECTION ON TAX REPORTS FILED WITH THE DEPART-
MENT OF TAXATION AND FINANCE IN LIEU OF BIENNIAL REPORTS. THIS AGREEMENT
MAY APPLY TO TAX REPORTS DUE FOR TAX YEARS STARTING ON OR AFTER JANUARY
FIRST, TWO THOUSAND SIXTEEN.
(B) IF THE AGREEMENT DESCRIBED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH
IS MADE, EACH CORPORATION REQUIRED TO FILE THE STATEMENT SPECIFIED IN
PARAGRAPH ONE OF THIS SECTION THAT IS ALSO SUBJECT TO TAX UNDER ARTICLE
NINE OR NINE-A OF THE TAX LAW SHALL INCLUDE SUCH STATEMENT ANNUALLY ON
ITS TAX REPORT FILED WITH THE DEPARTMENT OF TAXATION AND FINANCE IN LIEU
OF FILING A STATEMENT UNDER THIS SECTION WITH THE DEPARTMENT OF STATE
AND IN A MANNER PRESCRIBED BY THE COMMISSIONER OF TAXATION AND FINANCE.
HOWEVER, EACH CORPORATION REQUIRED TO FILE A STATEMENT UNDER THIS
SECTION MUST CONTINUE TO FILE THE BIENNIAL STATEMENT REQUIRED BY THIS
SECTION WITH THE DEPARTMENT OF STATE UNTIL THE CORPORATION IN FACT HAS
FILED A TAX REPORT WITH THE DEPARTMENT OF TAXATION AND FINANCE THAT
INCLUDES ALL REQUIRED INFORMATION. AFTER THAT TIME, THE CORPORATION
SHALL CONTINUE TO DELIVER ANNUALLY THE STATEMENT SPECIFIED IN PARAGRAPH
ONE OF THIS SECTION ON ITS TAX REPORT IN LIEU OF THE BIENNIAL STATEMENT
REQUIRED BY THIS SECTION.
(C) IF THE AGREEMENT DESCRIBED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH
IS MADE, THE DEPARTMENT OF TAXATION AND FINANCE SHALL DELIVER TO THE
DEPARTMENT OF STATE FOR FILING THE STATEMENT SPECIFIED IN PARAGRAPH ONE
OF THIS SECTION FOR EACH CORPORATION THAT FILES A TAX REPORT CONTAINING
SUCH STATEMENT. THE DEPARTMENT OF TAXATION AND FINANCE MUST, TO THE
EXTENT FEASIBLE, ALSO INCLUDE THE CURRENT NAME OF THE CORPORATION,
DEPARTMENT OF STATE IDENTIFICATION NUMBER FOR SUCH CORPORATION, THE
NAME, SIGNATURE AND CAPACITY OF THE SIGNER OF THE STATEMENT, NAME AND
S. 4209 57
STREET ADDRESS OF THE FILER OF THE STATEMENT, AND THE EMAIL ADDRESS, IF
ANY, OF THE FILER OF THE STATEMENT.
S 4. Section 409 of the business corporation law is amended by adding
a new paragraph 4 to read as follows:
4. THIS SECTION SHALL NOT APPLY TO A FAILURE TO FILE A STATEMENT FOR
ANY SITUATION FOR WHICH A PENALTY UNDER SUBDIVISION (V) OF SECTION ONE
THOUSAND EIGHTY-FIVE OF THE TAX LAW IS APPLICABLE.
S 5. Subdivision (e) of section 301 of the limited liability company
law, as amended by chapter 643 of the laws of 1995, is amended to read
as follows:
(e) [Every] (1) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBDIVISION,
EVERY limited liability company to which this chapter applies, shall
biennially in the calendar month during which its articles of organiza-
tion or application for authority were filed, or effective date thereof
if stated, file on forms prescribed by the secretary of state, a state-
ment setting forth the post office address within or without this state
to which the secretary of state shall mail a copy of any process
accepted against it served upon him or her. Such address shall supersede
any previous address on file with the department of state for this
purpose.
(2) THE COMMISSIONER OF TAXATION AND FINANCE AND THE SECRETARY OF
STATE MAY AGREE TO ALLOW LIMITED LIABILITY COMPANIES TO INCLUDE THE
STATEMENT SPECIFIED IN PARAGRAPH ONE OF THIS SUBDIVISION ON TAX REPORTS
FILED WITH THE DEPARTMENT OF TAXATION AND FINANCE IN LIEU OF BIENNIAL
REPORTS AND IN A MANNER PRESCRIBED BY THE COMMISSIONER OF TAXATION AND
FINANCE. IF THIS AGREEMENT IS MADE, STARTING WITH TAXABLE YEARS BEGIN-
NING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, EACH LIMITED
LIABILITY COMPANY REQUIRED TO FILE THE STATEMENT SPECIFIED IN PARAGRAPH
ONE OF THIS SUBDIVISION THAT IS SUBJECT TO THE FILING FEE IMPOSED BY
PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF
THE TAX LAW SHALL PROVIDE SUCH STATEMENT ANNUALLY ON ITS FILING FEE
PAYMENT FORM FILED WITH THE DEPARTMENT OF TAXATION AND FINANCE IN LIEU
OF FILING A STATEMENT UNDER THIS SECTION WITH THE DEPARTMENT OF STATE.
HOWEVER, EACH LIMITED LIABILITY COMPANY REQUIRED TO FILE A STATEMENT
UNDER THIS SECTION MUST CONTINUE TO FILE THE BIENNIAL STATEMENT REQUIRED
BY THIS SECTION WITH THE DEPARTMENT OF STATE UNTIL THE LIMITED LIABILITY
COMPANY IN FACT HAS FILED A FILING FEE PAYMENT FORM WITH THE DEPARTMENT
OF TAXATION AND FINANCE THAT INCLUDES ALL REQUIRED INFORMATION. AFTER
THAT TIME, THE LIMITED LIABILITY COMPANY SHALL CONTINUE TO PROVIDE ANNU-
ALLY THE STATEMENT SPECIFIED IN PARAGRAPH ONE OF THIS SUBDIVISION ON ITS
FILING FEE PAYMENT FORM IN LIEU OF THE BIENNIAL STATEMENT REQUIRED BY
THIS SUBDIVISION.
(3) IF THE AGREEMENT DESCRIBED IN PARAGRAPH TWO OF THIS SUBDIVISION IS
MADE, THE DEPARTMENT OF TAXATION AND FINANCE SHALL DELIVER TO THE
DEPARTMENT OF STATE THE STATEMENT SPECIFIED IN PARAGRAPH ONE OF THIS
SUBDIVISION CONTAINED ON FILING FEE PAYMENT FORMS. THE DEPARTMENT OF
TAXATION AND FINANCE MUST, TO THE EXTENT FEASIBLE, ALSO INCLUDE THE
CURRENT NAME OF THE LIMITED LIABILITY COMPANY, DEPARTMENT OF STATE IDEN-
TIFICATION NUMBER FOR SUCH LIMITED LIABILITY COMPANY, THE NAME, SIGNA-
TURE AND CAPACITY OF THE SIGNER OF THE STATEMENT, NAME AND STREET
ADDRESS OF THE FILER OF THE STATEMENT, AND THE EMAIL ADDRESS, IF ANY, OF
THE FILER OF THE STATEMENT.
S 6. Subdivision (c) of section 301-A of the limited liability company
law, as added by chapter 448 of the laws of 1998, is amended to read as
follows:
S. 4209 58
(c) The filing by the department of state of a certificate of amend-
ment or certificate of change OR THE FILING OF A STATEMENT UNDER SECTION
THREE HUNDRED ONE OF THIS ARTICLE providing for a new address by a
designating limited liability company shall annul the suspension and its
authority to do business in this state shall be restored and continued
as if no suspension had occurred.
S 7. Subdivision (c) of section 1101 of the limited liability company
law is amended to read as follows:
(c) For the statement of address of the post office address to which
the secretary of state shall mail a copy of any process against the
limited liability company served upon him or her pursuant to section
three hundred one of this chapter, nine dollars. THIS FEE SHALL NOT
APPLY IF THIS STATEMENT IS FILED DIRECTLY WITH THE DEPARTMENT OF TAXA-
TION AND FINANCE.
S 8. Subdivision (g) of section 121-1500 of the partnership law, as
amended by chapter 643 of the laws of 1995, is amended to read as
follows:
(g) Each registered limited liability partnership shall, within sixty
days prior to the fifth anniversary of the effective date of its regis-
tration and every five years thereafter, furnish a statement to the
department of state setting forth: (i) the name of the registered limit-
ed liability partnership, (ii) the address of the principal office of
the registered limited liability partnership, (iii) the post office
address within or without this state to which the secretary of state
shall mail a copy of any process accepted against it served upon him or
her, which address shall supersede any previous address on file with the
department of state for this purpose, and (iv) a statement that it is
eligible to register as a registered limited liability partnership
pursuant to subdivision (a) of this section. The statement shall be
executed by one or more partners of the registered limited liability
partnership. The statement shall be accompanied by a fee of twenty
dollars IF SUBMITTED DIRECTLY TO THE DEPARTMENT OF STATE. THE COMMIS-
SIONER OF TAXATION AND FINANCE AND THE SECRETARY OF STATE MAY AGREE TO
ALLOW REGISTERED LIMITED LIABILITY PARTNERSHIPS TO PROVIDE THE STATEMENT
SPECIFIED IN THIS SUBDIVISION ON TAX REPORTS FILED WITH THE DEPARTMENT
OF TAXATION AND FINANCE IN LIEU OF STATEMENTS FILED DIRECTLY WITH THE
SECRETARY OF STATE AND IN A MANNER PRESCRIBED BY THE COMMISSIONER OF
TAXATION AND FINANCE. IF THIS AGREEMENT IS MADE, STARTING WITH TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, EACH
LIMITED LIABILITY PARTNERSHIP REQUIRED TO FILE THE STATEMENT SPECIFIED
IN THIS SUBDIVISION THAT IS SUBJECT TO THE FILING FEE IMPOSED BY PARA-
GRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THE
TAX LAW SHALL PROVIDE SUCH STATEMENT ANNUALLY ON ITS FILING FEE PAYMENT
FORM FILED WITH THE DEPARTMENT OF TAXATION AND FINANCE IN LIEU OF FILING
A STATEMENT UNDER THIS SUBDIVISION WITH THE DEPARTMENT OF STATE. HOWEV-
ER, EACH REGISTERED LIMITED LIABILITY PARTNERSHIP REQUIRED TO FILE A
STATEMENT UNDER THIS SECTION MUST CONTINUE TO FILE A STATEMENT WITH THE
DEPARTMENT OF STATE AS REQUIRED BY THIS SECTION UNTIL THE REGISTERED
LIMITED LIABILITY PARTNERSHIP IN FACT HAS FILED A FILING FEE PAYMENT
FORM WITH THE DEPARTMENT OF TAXATION AND FINANCE THAT INCLUDES ALL
REQUIRED INFORMATION. AFTER THAT TIME, THE LIMITED LIABILITY PARTNERSHIP
SHALL CONTINUE TO PROVIDE ANNUALLY THE STATEMENT SPECIFIED IN THIS
SUBDIVISION ON ITS FILING FEE PAYMENT FORM IN LIEU OF THE STATEMENT
REQUIRED BY THIS SUBDIVISION. THE COMMISSIONER OF TAXATION AND FINANCE
SHALL DELIVER THE COMPLETED STATEMENT SPECIFIED IN THIS SUBDIVISION TO
THE DEPARTMENT OF STATE FOR FILING. THE DEPARTMENT OF TAXATION AND
S. 4209 59
FINANCE MUST, TO THE EXTENT FEASIBLE, ALSO INCLUDE IN SUCH DELIVERY THE
CURRENT NAME OF THE REGISTERED LIMITED LIABILITY PARTNERSHIP, DEPARTMENT
OF STATE IDENTIFICATION NUMBER FOR SUCH REGISTERED LIMITED LIABILITY
PARTNERSHIP, THE NAME, SIGNATURE AND CAPACITY OF THE SIGNER OF THE
STATEMENT, NAME AND STREET ADDRESS OF THE FILER OF THE STATEMENT, AND
THE EMAIL ADDRESS, IF ANY, OF THE FILER OF THE STATEMENT. If a regis-
tered limited liability partnership shall not timely file the statement
required by this subdivision, the department of state may, upon sixty
days' notice mailed to the address of such registered limited liability
partnership as shown in the last registration or statement or certif-
icate of amendment filed by such registered limited liability partner-
ship, make a proclamation declaring the registration of such registered
limited liability partnership to be revoked pursuant to this subdivi-
sion. The department of state shall file the original proclamation in
its office and shall publish a copy thereof in the state register no
later than three months following the date of such proclamation. Upon
the publication of such proclamation in the manner aforesaid, the regis-
tration of each registered limited liability partnership named in such
proclamation shall be deemed revoked without further legal proceedings.
Any registered limited liability partnership whose registration was so
revoked may file in the department of state a [certificate of consent
certifying that either a] statement required by this subdivision [has
been filed or accompanies the certificate of consent and all fees
imposed under this chapter on the registered limited liability partner-
ship have been paid]. The filing of such [certificate of consent] STATE-
MENT shall have the effect of annulling all of the proceedings thereto-
fore taken for the revocation of the registration of such registered
limited liability partnership under this subdivision and (1) the regis-
tered limited liability partnership shall thereupon have such powers,
rights, duties and obligations as it had on the date of the publication
of the proclamation, with the same force and effect as if such proclama-
tion had not been made or published and (2) such publication shall not
affect the applicability of the provisions of subdivision (b) of section
twenty-six of this chapter to any debt, obligation or liability
incurred, created or assumed from the date of publication of the procla-
mation through the date of the filing of the [certificate of consent.
The filing of a certificate of consent shall be accompanied by a fee of
fifty dollars and if accompanied by a statement, the fee required by
this subdivision] STATEMENT WITH THE DEPARTMENT OF STATE. If, after the
publication of such proclamation, it shall be determined by the depart-
ment of state that the name of any registered limited liability partner-
ship was erroneously included in such proclamation, the department of
state shall make appropriate entry on its records, which entry shall
have the effect of annulling all of the proceedings theretofore taken
for the revocation of the registration of such registered limited
liability partnership under this subdivision and (A) such registered
limited liability partnership shall have such powers, rights, duties and
obligations as it had on the date of the publication of the proclama-
tion, with the same force and effect as if such proclamation had not
been made or published and (B) such publication shall not affect the
applicability of the provisions of subdivision (b) of section twenty-six
of this chapter to any debt, obligation or liability incurred, created
or assumed from the date of publication of the proclamation through the
date of the making of the entry on the records of the department of
state. Whenever a registered limited liability partnership WHOSE REGIS-
TRATION WAS REVOKED shall have filed a [certificate of consent] STATE-
S. 4209 60
MENT pursuant to this subdivision or if the name of a registered limited
liability partnership was erroneously included in a proclamation and
such proclamation was annulled, the department of state shall publish a
notice thereof in the state register.
S 9. Paragraph (I) of subdivision (f) of section 121-1502 of the part-
nership law, as amended by chapter 643 of the laws of 1995 and as desig-
nated by chapter 767 of the laws of 2005, is amended to read as follows:
(I) Each New York registered foreign limited liability partnership
shall, within sixty days prior to the fifth anniversary of the effective
date of its notice and every five years thereafter, furnish a statement
to the department of state setting forth:
(i) the name under which the New York registered foreign limited
liability partnership is carrying on or conducting or transacting busi-
ness or activities in this state, (ii) the address of the principal
office of the New York registered foreign limited liability partnership,
(iii) the post office address within or without this state to which the
secretary of state shall mail a copy of any process accepted against it
served upon him or her, which address shall supersede any previous
address on file with the department of state for this purpose, and (iv)
a statement that it is a foreign limited liability partnership. The
statement shall be executed by one or more partners of the New York
registered foreign limited liability partnership. The statement shall be
accompanied by a fee of fifty dollars IF SUBMITTED DIRECTLY TO THE
DEPARTMENT OF STATE. THE COMMISSIONER OF TAXATION AND FINANCE AND THE
SECRETARY OF STATE MAY AGREE TO ALLOW NEW YORK REGISTERED FOREIGN LIMIT-
ED LIABILITY PARTNERSHIPS TO PROVIDE THE STATEMENT SPECIFIED IN THIS
PARAGRAPH ON TAX REPORTS FILED WITH THE DEPARTMENT OF TAXATION AND
FINANCE IN LIEU OF STATEMENTS FILED DIRECTLY WITH THE SECRETARY OF STATE
AND IN A MANNER PRESCRIBED BY THE COMMISSIONER OF TAXATION AND FINANCE.
IF THIS AGREEMENT IS MADE, STARTING WITH TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, EACH NEW YORK REGISTERED
FOREIGN LIMITED LIABILITY PARTNERSHIP REQUIRED TO FILE THE STATEMENT
SPECIFIED IN THIS PARAGRAPH THAT IS SUBJECT TO THE FILING FEE IMPOSED BY
PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF
THE TAX LAW SHALL PROVIDE SUCH STATEMENT ANNUALLY ON ITS FILING FEE
PAYMENT FORM FILED WITH THE DEPARTMENT OF TAXATION AND FINANCE IN LIEU
OF FILING A STATEMENT UNDER THIS PARAGRAPH DIRECTLY WITH THE DEPARTMENT
OF STATE. HOWEVER, EACH NEW YORK REGISTERED FOREIGN LIMITED LIABILITY
PARTNERSHIP REQUIRED TO FILE A STATEMENT UNDER THIS SECTION MUST CONTIN-
UE TO FILE A STATEMENT WITH THE DEPARTMENT OF STATE AS REQUIRED BY THIS
SECTION UNTIL THE NEW YORK REGISTERED FOREIGN LIMITED LIABILITY PARTNER-
SHIP IN FACT HAS FILED A FILING FEE PAYMENT FORM WITH THE DEPARTMENT OF
TAXATION AND FINANCE THAT INCLUDES ALL REQUIRED INFORMATION. AFTER THAT
TIME, THE NEW YORK REGISTERED FOREIGN LIMITED LIABILITY PARTNERSHIP
SHALL CONTINUE TO PROVIDE ANNUALLY THE STATEMENT SPECIFIED IN THIS PARA-
GRAPH ON ITS FILING FEE PAYMENT FORM IN LIEU OF FILING THE STATEMENT
REQUIRED BY THIS PARAGRAPH DIRECTLY WITH THE DEPARTMENT OF STATE. THE
COMMISSIONER OF TAXATION AND FINANCE SHALL DELIVER THE COMPLETED STATE-
MENT SPECIFIED IN THIS PARAGRAPH TO THE DEPARTMENT OF STATE FOR FILING.
THE DEPARTMENT OF TAXATION AND FINANCE MUST, TO THE EXTENT FEASIBLE,
ALSO INCLUDE IN SUCH DELIVERY THE CURRENT NAME OF THE NEW YORK REGIS-
TERED FOREIGN LIMITED LIABILITY PARTNERSHIP, DEPARTMENT OF STATE IDEN-
TIFICATION NUMBER FOR SUCH NEW YORK REGISTERED FOREIGN LIMITED LIABILITY
PARTNERSHIP, THE NAME, SIGNATURE AND CAPACITY OF THE SIGNER OF THE
STATEMENT, NAME AND STREET ADDRESS OF THE FILER OF THE STATEMENT, AND
THE EMAIL ADDRESS, IF ANY, OF THE FILER OF THE STATEMENT. If a New York
S. 4209 61
registered foreign limited liability partnership shall not timely file
the statement required by this subdivision, the department of state may,
upon sixty days' notice mailed to the address of such New York regis-
tered foreign limited liability partnership as shown in the last notice
or statement or certificate of amendment filed by such New York regis-
tered foreign limited liability partnership, make a proclamation declar-
ing the status of such New York registered foreign limited liability
partnership to be revoked pursuant to this subdivision. The department
of state shall file the original proclamation in its office and shall
publish a copy thereof in the state register no later than three months
following the date of such proclamation. Upon the publication of such
proclamation in the manner aforesaid, the status of each New York regis-
tered foreign limited liability partnership named in such proclamation
shall be deemed revoked without further legal proceedings. Any New York
registered foreign limited liability partnership whose status was so
revoked may file in the department of state a [certificate of consent
certifying that either a] statement required by this subdivision [has
been filed or accompanies the certificate of consent and all fees
imposed under this chapter on the New York registered foreign limited
liability partnership have been paid]. The filing of such [certificate
of consent] STATEMENT shall have the effect of annulling all of the
proceedings theretofore taken for the revocation of the status of such
New York registered foreign limited liability partnership under this
subdivision and (1) the New York registered foreign limited liability
partnership shall thereupon have such powers, rights, duties and obli-
gations as it had on the date of the publication of the proclamation,
with the same force and effect as if such proclamation had not been made
or published and (2) such publication shall not affect the applicability
of the laws of the jurisdiction governing the agreement under which such
New York registered foreign limited liability partnership is operating
(including laws governing the liability of partners) to any debt, obli-
gation or liability incurred, created or assumed from the date of publi-
cation of the proclamation through the date of the filing of the
[certificate of consent. The filing of a certificate of consent shall be
accompanied by a fee of fifty dollars and if accompanied by a statement,
the fee required by this subdivision] STATEMENT WITH THE DEPARTMENT OF
STATE. If, after the publication of such proclamation, it shall be
determined by the department of state that the name of any New York
registered foreign limited liability partnership was erroneously
included in such proclamation, the department of state shall make appro-
priate entry on its records, which entry shall have the effect of
annulling all of the proceedings theretofore taken for the revocation of
the status of such New York registered foreign limited liability part-
nership under this subdivision and (1) such New York registered foreign
limited liability partnership shall have such powers, rights, duties and
obligations as it had on the date of the publication of the proclama-
tion, with the same force and effect as if such proclamation had not
been made or published and (2) such publication shall not affect the
applicability of the laws of the jurisdiction governing the agreement
under which such New York registered foreign limited liability partner-
ship is operating (including laws governing the liability of partners)
to any debt, obligation or liability incurred, created or assumed from
the date of publication of the proclamation through the date of the
making of the entry on the records of the department of state. Whenever
a New York registered foreign limited liability partnership WHOSE STATUS
WAS REVOKED shall have filed a [certificate of consent] STATEMENT pursu-
S. 4209 62
ant to this subdivision or if the name of a New York registered foreign
limited liability partnership was erroneously included in a proclamation
and such proclamation was annulled, the department of state shall
publish a notice thereof in the state register.
S 10. Subdivision (d) of section 121-1506 of the partnership law, as
amended by chapter 172 of the laws of 1999, is amended to read as
follows:
(d) The filing by the department of state of a certificate of amend-
ment OR THE FILING OF A STATEMENT providing for a new address by a
designating limited liability partnership shall annul the suspension and
its authority to do business in this state shall be restored and contin-
ued as if no suspension had occurred.
S 11. Section 192 of the tax law is amended by adding a new subdivi-
sion 5 to read as follows:
5. NOTWITHSTANDING THE PROVISIONS OF SECTION TWO HUNDRED TWO OF THIS
ARTICLE, THE COMMISSIONER SHALL PROVIDE THE STATEMENTS AND OTHER
REQUIRED INFORMATION REQUESTED ON TAX REPORTS UNDER SECTION FOUR HUNDRED
EIGHT OF THE BUSINESS CORPORATION LAW TO THE SECRETARY OF STATE FOR
FILING. SUCH PROVISION MAY ALSO INCLUDE A COPY OR IMAGE OF THAT PORTION
OF THE REPORT SOLELY PERTINENT TO SUCH INFORMATION TO THE EXTENT FEASI-
BLE. THE COMMISSIONER MAY ALSO PROVIDE INFORMATION ON NONCOMPLIANCE.
S 12. Section 211 of the tax law is amended by adding a new subdivi-
sion 15 to read as follows:
15. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION EIGHT OF THIS
SECTION, THE COMMISSIONER SHALL PROVIDE THE STATEMENTS AND OTHER
REQUIRED INFORMATION REQUESTED ON TAX REPORTS UNDER SECTION FOUR HUNDRED
EIGHT OF THE BUSINESS CORPORATION LAW TO THE SECRETARY OF STATE FOR
FILING. SUCH PROVISION MAY ALSO INCLUDE A COPY OR IMAGE OF THAT PORTION
OF THE REPORT SOLELY PERTINENT TO SUCH INFORMATION TO THE EXTENT FEASI-
BLE. THE COMMISSIONER ANY ALSO PROVIDE INFORMATION ON NONCOMPLIANCE.
S 13. Paragraph 3 of subsection (c) of section 658 of the tax law is
amended by adding a new subparagraph (E) to read as follows:
(E) NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (E) OF SECTION SIX
HUNDRED NINETY-SEVEN OF THIS ARTICLE, THE COMMISSIONER SHALL PROVIDE THE
STATEMENTS AND OTHER REQUIRED INFORMATION INCLUDED ON THE FILING FEE
PAYMENT FORM UNDER SECTION THREE HUNDRED ONE OF THE LIMITED LIABILITY
COMPANY LAW, SUBDIVISION (F) OF SECTION 121-1502 OF THE PARTNERSHIP LAW,
AND SUBDIVISION (D) OF SECTION 121-1506 OF THE PARTNERSHIP LAW TO THE
SECRETARY OF STATE FOR FILING. SUCH PROVISION MAY ALSO INCLUDE A COPY
OR IMAGE OF THAT PORTION OF THE REPORT SOLELY PERTINENT TO SUCH INFORMA-
TION TO THE EXTENT FEASIBLE. THE COMMISSIONER MAY ALSO PROVIDE INFORMA-
TION ON NONCOMPLIANCE.
S 14. Section 1085 of the tax law is amended by adding a new
subsection (v) to read as follows:
(V) FAILURE TO SUPPLY ALL THE INFORMATION REQUIRED OR TO PROVIDE
CORRECT INFORMATION IN SECRETARY OF STATE STATEMENTS. UNLESS IT IS SHOWN
THAT SUCH FAILURE TO PROVIDE THE STATEMENT AND INFORMATION REQUIRED BY
SECTION FOUR HUNDRED EIGHT OF THE BUSINESS CORPORATION LAW IS DUE TO
REASONABLE CAUSE AND NOT TO WILLFUL NEGLECT, THERE SHALL, UPON NOTICE
AND DEMAND BY THE COMMISSIONER AND IN THE SAME MANNER AS TAX, BE PAID BY
THE TAXPAYER FAILING TO SUPPLY COMPLETE AND CORRECT INFORMATION, A
PENALTY OF TWO HUNDRED FIFTY DOLLARS PER TAXPAYER REQUIRED TO PROVIDE
SUCH INFORMATION.
S 15. Section 685 of the tax law is amended by adding a new subsection
(dd) to read as follows:
S. 4209 63
(DD) FAILURE TO SUPPLY ALL THE INFORMATION REQUIRED OR TO PROVIDE
CORRECT INFORMATION IN SECRETARY OF STATE STATEMENTS. UNLESS IT IS SHOWN
THAT SUCH FAILURE TO PROVIDE THE STATEMENT AND INFORMATION REQUIRED BY
SUBDIVISION (E) OF SECTION THREE HUNDRED ONE OF THE LIMITED LIABILITY
COMPANY LAW, SUBDIVISION (F) OF SECTION 121-1502 OF THE PARTNERSHIP LAW,
OR SUBDIVISION (D) OF SECTION 121-1506 OF THE PARTNERSHIP LAW IS DUE TO
REASONABLE CAUSE AND NOT TO WILLFUL NEGLECT, THERE SHALL, UPON NOTICE
AND DEMAND BY THE COMMISSIONER AND IN THE SAME MANNER AS TAX, BE PAID BY
THE TAXPAYER FAILING TO SUPPLY COMPLETE AND CORRECT INFORMATION, A
PENALTY OF TWO HUNDRED AND FIFTY DOLLARS PER LIMITED LIABILITY COMPANY
REQUIRED TO PROVIDE SUCH INFORMATION ON ITS FILING FEE PAYMENT FORM.
S 16. This act shall take effect immediately.
PART T
Section 1. Intentionally omitted.
S 2. Paragraph (d) of subdivision 5 of section 208 of the tax law, as
added by section 4 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(d) If a taxpayer acquires stock during the second half of its taxable
year and owns that stock on the last day of the taxable year, it will be
presumed, SOLELY FOR PURPOSES OF DETERMINING WHETHER THAT STOCK SHOULD
BE CLASSIFIED AS INVESTMENT CAPITAL AFTER IT IS ACQUIRED, that the
taxpayer held that stock for more than six consecutive months during the
taxable year. IF THE TAXPAYER DOES NOT OWN THE STOCK AT THE TIME IT
FILES ITS ORIGINAL REPORT FOR THE TAXABLE YEAR IN WHICH IT ACQUIRES THE
STOCK THEN THE PRESUMPTION IN THE PRECEDING SENTENCE SHALL NOT APPLY TO
THE TAXPAYER AND THE ACTUAL PERIOD OF TIME DURING WHICH THE TAXPAYER
OWNED THE STOCK SHALL BE USED TO DETERMINE WHETHER THE STOCK SHOULD BE
CLASSIFIED AS INVESTMENT CAPITAL AFTER IT IS ACQUIRED. However, if the
taxpayer does not in fact hold that stock AS INVESTMENT CAPITAL for more
than six consecutive months, the taxpayer must increase its total busi-
ness capital in the immediately succeeding taxable year by the amount
included in investment capital for that stock, net of any liabilities
attributable to that stock computed as provided in paragraph (b) of this
subdivision and must increase its business income in the immediately
succeeding taxable year by the amount of income and net gains (but not
less than zero) from that stock included in investment income, less any
interest deductions directly or indirectly attributable to that stock,
as provided in subdivision six of this section.
S 3. Paragraph (e) of subdivision 5 of section 208 of the tax law, as
added by section 4 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(e) When income or gain from a debt obligation or other security
cannot be apportioned to the state using the [business allocation
percentage] APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO HUNDRED
TEN-A OF THIS ARTICLE as a result of United States constitutional prin-
ciples, the debt obligation or other security will be included in
investment capital.
S 4. Paragraph (f) of subdivision 5 of section 208 of the tax law is
REPEALED.
S 5. Paragraph (a) of subdivision 6 of section 208 of the tax law, as
amended by section 4 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(a) The term "investment income" means income, including capital gains
in excess of capital losses, from investment capital, to the extent
S. 4209 64
included in computing entire net income, less, (i) in the discretion of
the commissioner, any interest deductions allowable in computing entire
net income which are directly or indirectly attributable to investment
capital or investment income, [and (ii) the taxpayer's loss, deduction
and/or expense attributable to any transaction, or series of trans-
actions, entered into to manage the risk of price changes or currency
fluctuations with respect to any item of investment capital that is held
or to be held by the taxpayer, or the aggregate investment capital that
is held or to be held by the taxpayer, if all of the risk, or all but a
de minimis amount of the risk, is with respect to investment capital,]
provided, however, that in no case shall investment income exceed entire
net income. (II) If the amount OF INTEREST DEDUCTIONS subtracted under
[subparagraph (i) or subparagraph (ii) of this paragraph or under both
of those subparagraphs] SUBPARAGRAPH (I) OF THIS PARAGRAPH exceeds
investment income, the excess of such amount over investment income must
be added back to entire net income.
S 6. Subclause (ii) of clause (B) of subparagraph 1 of paragraph (r)
of subdivision 9 of section 208 of the tax law, as added by section 4 of
part A of chapter 59 of the laws of 2014, is amended to read as follows:
(ii) Measurement of assets. FOR PURPOSES OF THIS PARAGRAPH: (I) Total
assets are those assets that are properly reflected on a balance sheet,
computed in the same manner as is required by the banking regulator of
the taxpayers included in the combined return.
(II) Assets will only be included if the income or expenses of which
are properly reflected (or would have been properly reflected if not
fully depreciated or expensed, or depreciated or expensed to a nominal
amount) in the computation of the combined group's entire net income for
the taxable year. Assets will not include deferred tax assets and intan-
gible assets identified as "goodwill".
(III) Tangible real and personal property, such as buildings, land,
machinery, and equipment shall be valued at cost. Leased assets will be
valued at the annual lease payment multiplied by eight. Intangible prop-
erty, such as loans and investments, shall be valued at book value
exclusive of reserves.
(IV) Intercorporate stockholdings and bills, notes and accounts
receivable, and other intercorporate indebtedness between the corpo-
rations included in the combined report shall be eliminated.
(V) Average assets are computed using the assets measured on the first
day of the taxable year, and on the last day of each subsequent quarter
of the taxable year or month or day during the taxable year.
S 7. Clause (B) of subparagraph 2 and clause (B) of subparagraph 2-a
of paragraph (s) of subdivision 9 of section 208 of the tax law, as
added by section 4 of part A of chapter 59 of the laws of 2014, are
amended to read as follows:
(B) The average value during the taxable year of the assets of the
taxpayer, or, IF THE TAXPAYER IS INCLUDED IN A COMBINED REPORT, the
assets of the combined reporting group of the taxpayer under section two
hundred ten-C of this article, must not exceed eight billion dollars.
(B) The average value during the taxable year of the assets of the
taxpayer, or, IF THE TAXPAYER IS INCLUDED IN A COMBINED REPORT, the
assets of the combined reporting group of the taxpayer under section two
hundred ten-C of this article, must not exceed eight billion dollars.
S 8. Paragraph (d) of subdivision 1 of section 209 of the tax law, as
added by section 5 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
S. 4209 65
(d)(i) A corporation with less than one million dollars but at least
ten thousand dollars of receipts within this state in a taxable year
that is part of a [combined reporting] UNITARY group THAT MEETS THE
OWNERSHIP TEST under section two hundred ten-C of this article is deriv-
ing receipts from activity in this state if the receipts within this
state of the members of the [combined reporting] UNITARY group that have
at least ten thousand dollars of receipts within this state in the
aggregate meet the threshold set forth in paragraph (b) of this subdivi-
sion.
(ii) A corporation that does not meet any of the thresholds set forth
in paragraph (c) of this subdivision but has at least ten customers, or
locations, or customers and locations, as described in paragraph (c) of
this subdivision, and is part of a [combined reporting] UNITARY group
THAT MEETS THE OWNERSHIP TEST under section two hundred ten-C of this
article [that] is doing business in this state if the number of custom-
ers, locations, or customers and locations, within this state of the
members of the [combined reporting] UNITARY group that have at least ten
customers, locations, or customers and locations, within this state in
the aggregate meets any of the thresholds set forth in paragraph (c) of
this subdivision.
S 9. Paragraph (d) of subdivision 1 of section 209-B of the tax law,
as added by section 7 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(d)(i) A corporation with less than one million dollars but at least
ten thousand dollars of receipts within the metropolitan commuter trans-
portation district in a taxable year that is part of a [combined report-
ing] UNITARY group THAT MEETS THE OWNERSHIP TEST under section two
hundred ten-C of this article is deriving receipts from activity in the
metropolitan commuter transportation district if the receipts within the
metropolitan commuter transportation district of the members of the
[combined reporting] UNITARY group that have at least ten thousand
dollars of receipts within the metropolitan commuter transportation
district in the aggregate meet the threshold set forth in paragraph (b)
of this subdivision.
(ii) A corporation that does not meet any of the thresholds set forth
in paragraph (c) of this subdivision but has at least ten customers, or
locations, or customers and locations, as described in paragraph (c),
and is part of a [combined reporting] UNITARY group THAT MEETS THE
OWNERSHIP TEST under section two hundred ten-C of this article [that] is
doing business in the metropolitan commuter transportation district if
the number of customers, locations, or customers and locations, within
the metropolitan commuter transportation district of the members of the
[combined reporting] UNITARY group that have at least ten customers,
locations, or customers and locations, within the metropolitan commuter
transportation district in the aggregate meets any of the thresholds set
forth in paragraph (c) of this subdivision.
S 10. The opening paragraph of paragraph (a) of subdivision 1 of
section 210 of the tax law, as amended by section 12 of part A of chap-
ter 59 of the laws of 2014, is amended to read as follows:
For taxable years beginning before January first, two thousand
sixteen, the amount prescribed by this paragraph shall be computed at
the rate of seven and one-tenth percent of the taxpayer's business
income base. For taxable years beginning on or after January first, two
thousand sixteen, the amount prescribed by this paragraph shall be six
and one-half percent of the taxpayer's business income base. The taxpay-
er's business income base shall mean the portion of the taxpayer's busi-
S. 4209 66
ness income allocated within the state as hereinafter provided. However,
in the case of a small business taxpayer, as defined in paragraph (f) of
this subdivision, the amount prescribed by this paragraph shall be
computed pursuant to subparagraph (iv) of this paragraph and in the case
of a manufacturer, as defined in subparagraph (vi) of this paragraph,
the amount prescribed by this paragraph shall be computed pursuant to
subparagraph (vi) of this paragraph, AND, IN THE CASE OF A QUALIFIED
EMERGING TECHNOLOGY COMPANY, AS DEFINED IN SUBPARAGRAPH (VII) OF THIS
PARAGRAPH, THE AMOUNT PRESCRIBED BY THIS PARAGRAPH SHALL BE COMPUTED
PURSUANT TO SUBPARAGRAPH (VII) OF THIS PARAGRAPH.
S 11. Subparagraph (vi) of paragraph (a) of subdivision 1 of section
210 of the tax law, as amended by section 12 of part A of chapter 59 of
the laws of 2014, is amended to read as follows:
(vi) for taxable years beginning on or after January first, two thou-
sand fourteen, the amount prescribed by this paragraph for a taxpayer
which is a qualified New York manufacturer, shall be computed at the
rate of zero percent of the taxpayer's business income base. The term
"manufacturer" shall mean a taxpayer which during the taxable year is
principally engaged in the production of goods by manufacturing, proc-
essing, assembling, refining, mining, extracting, farming, agriculture,
horticulture, floriculture, viticulture or commercial fishing. However,
the generation and distribution of electricity, the distribution of
natural gas, and the production of steam associated with the generation
of electricity shall not be qualifying activities for a manufacturer
under this subparagraph. Moreover, IN THE CASE OF A COMBINED REPORT, the
combined group shall be considered a "manufacturer" for purposes of this
subparagraph only if the combined group during the taxable year is prin-
cipally engaged in the activities set forth in this paragraph, or any
combination thereof. A taxpayer or, IN THE CASE OF A COMBINED REPORT, a
combined group shall be "principally engaged" in activities described
above if, during the taxable year, more than fifty percent of the gross
receipts of the taxpayer or combined group, respectively, are derived
from receipts from the sale of goods produced by such activities. In
computing a combined group's gross receipts, intercorporate receipts
shall be eliminated. A "qualified New York manufacturer" is a manufac-
turer which has property in New York which is described in CLAUSE (A) OF
SUBPARAGRAPH (I) OF PARAGRAPH (B) OF subdivision one of section two
hundred ten-B of this article and either (I) the adjusted basis of such
property for federal income tax purposes at the close of the taxable
year is at least one million dollars or (II) all of its real and
personal property is located in New York. A taxpayer or, in the case of
a combined report, a combined group, that does not satisfy the princi-
pally engaged test may be a qualified New York manufacturer if the
taxpayer or the combined group employs during the taxable year at least
two thousand five hundred employees in manufacturing in New York and the
taxpayer or the combined group has property in the state used in manu-
facturing, the adjusted basis of which for federal income tax purposes
at the close of the taxable year is at least one hundred million
dollars.
S 12. Subparagraph (vii) of paragraph (a) of subdivision 1 of section
210 of the tax law, as amended by section 12 of part A of chapter 59 of
the laws of 2014, is amended to read as follows:
(vii) For a taxpayer that is defined as a qualified emerging technolo-
gy company under paragraph (c) of subdivision one of section thirty-one
hundred two-e of the public authorities law regardless of the ten
million dollar limitation expressed in subparagraph one of such para-
S. 4209 67
graph (c) the AMOUNT PRESCRIBED BY THIS PARAGRAPH SHALL BE COMPUTED AT
THE rate [at which the tax is computed in effect for taxable years
beginning on or after January first, two thousand thirteen and before
January first, two thousand fourteen for such qualified emerging tech-
nology companies shall be reduced by nine and two-tenths percent for
taxable years commencing on or after January first, two thousand four-
teen and before January first, two thousand fifteen, twelve and three-
tenths percent for taxable years commencing on or after January first,
two thousand fifteen and before January first, two thousand sixteen,
fifteen and four-tenths percent for taxable years commencing on or after
January first, two thousand sixteen and before January first, two thou-
sand eighteen, and twenty-five percent for taxable years beginning on or
after January first, two thousand eighteen] OF 5.7 PERCENT FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN AND
BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, 5.5 PERCENT FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST TWO THOUSAND SIXTEEN AND
BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, AND 4.875 PERCENT FOR TAXA-
BLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN.
S 13. Item (IV) of subclause 2 of clause (B) of subparagraph (viii) of
paragraph (a) of subdivision 1 of section 210 of the tax law, as added
by section 12 of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
(IV) In lieu of the subtraction described in item (III) of this
subclause, if the taxpayer so elects, the taxpayer's prior net operating
loss conversion subtraction for the tax years beginning on or after
January first, two thousand fifteen and before January first, two thou-
sand seventeen shall equal in each year, not more than one-half of its
net operating loss conversion subtraction pool UNTIL THE POOL IS
EXHAUSTED. IF THE POOL IS NOT EXHAUSTED AT THE END OF SUCH TIME PERIOD,
THE REMAINDER OF THE POOL SHALL BE FORFEITED. The taxpayer shall make
such election on its FIRST return for the tax year beginning on or after
January first, two thousand fifteen and before January first, two thou-
sand sixteen by the due date for such return (determined with regard to
extensions).
S 14. Subclause 4 of clause (B) of subparagraph (viii) of paragraph
(a) of subdivision 1 of section 210 of the tax law, as added by section
12 of part A of chapter 59 of the laws of 2014, is amended to read as
follows:
(4) The prior net operating loss conversion subtraction may be used to
reduce the taxpayer's tax on allocated business income to the higher of
the tax on the capital base under paragraph (b) of this subdivision or
the fixed dollar minimum under paragraph (d) of this subdivision. [Any]
UNLESS THE TAXPAYER HAS MADE THE ELECTION PROVIDED FOR IN ITEM (IV) OF
SUBCLAUSE TWO OF THIS CLAUSE, ANY amount of unused subtraction shall be
carried forward to subsequent tax year or years until [tax] THE PRIOR
NET OPERATING LOSS CONVERSION SUBTRACTION POOL IS EXHAUSTED, BUT FOR NO
LONGER THAN TWENTY TAXABLE years OR THE TAXABLE YEAR beginning on or
after January first, TWO THOUSAND THIRTY-FIVE BUT BEFORE JANUARY FIRST,
two thousand thirty-six, WHICHEVER COMES FIRST. Such amount carried
forward shall not be subject to the one-tenth limitation for the subse-
quent tax year or years. However, if the taxpayer elects to compute its
prior net operating loss conversion subtraction pursuant to item (IV) of
subclause two of this clause, the taxpayer shall not carry forward any
UNUSED amount of such subtraction [beyond its] TO ANY tax year beginning
on or after [January first, two thousand sixteen and before] January
first, two thousand seventeen.
S. 4209 68
S 15. The opening paragraph of subparagraph (ix) of paragraph (a) of
subdivision 1 of section 210 of the tax law, as added by section 12 of
part A of chapter 59 of the laws of 2014, is amended to read as follows:
In computing the business income base, a net operating loss deduction
shall be allowed. A net operating loss deduction is the amount of net
operating loss or losses from one or more taxable years that are carried
forward OR CARRIED BACK to a particular [income] TAXABLE year. A net
operating loss is the amount of a business loss incurred in a particular
tax year multiplied by the apportionment factor for that year as deter-
mined under section two hundred ten-A of this article. The maximum net
operating LOSS deduction that is allowed in a taxable year is the amount
that reduces the taxpayer's tax on [allocated] APPORTIONED business
income to the higher of the tax on the capital base or the fixed dollar
minimum. Such deduction and loss are determined in accordance with the
following:
S 16. Clauses 4 and 6 of subparagraph (ix) of paragraph (a) of subdi-
vision 1 or section 210 of the tax law, as added by section 12 of part A
of chapter 59 of the laws of 2014, are amended to read as follows:
(4) [A net operating loss may be carried forward to each of the twenty
taxable years following the taxable year of the loss. A net operating
loss may be carried back to each of the three taxable years preceding
the taxable year of the loss; provided, however no loss can be carried
back to a tax year prior to a tax year beginning on or after January,
first, two thousand fifteen. A taxpayer must apply both of these limita-
tions in computing such net operating loss deduction.] A NET OPERATING
LOSS MAY BE CARRIED BACK THREE TAXABLE YEARS PRECEDING THE TAXABLE YEAR
OF THE LOSS. HOWEVER NO LOSS CAN BE CARRIED BACK TO A TAXABLE YEAR
BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN. THE LOSS IS FIRST
CARRIED TO THE EARLIEST OF THE THREE TAXABLE YEARS. IF IT IS NOT ENTIRE-
LY USED IN THAT YEAR, IT IS CARRIED TO THE SECOND TAXABLE YEAR PRECEDING
THE LOSS YEAR, AND ANY REMAINING AMOUNT IS CARRIED TO THE TAXABLE YEAR
IMMEDIATELY PRECEDING THE LOSS YEAR. ANY UNUSED AMOUNT OF LOSS THEN
REMAINING MAY BE CARRIED FORWARD FOR AS MANY AS TWENTY TAXABLE YEARS
FOLLOWING THE LOSS YEAR. LOSSES CARRIED FORWARD ARE CARRIED FORWARD
FIRST TO THE TAXABLE YEAR IMMEDIATELY FOLLOWING THE LOSS YEAR, THEN TO
THE SECOND TAXABLE YEAR FOLLOWING THE LOSS YEAR, AND THEN TO THE NEXT
IMMEDIATELY SUBSEQUENT TAXABLE YEAR OR YEARS UNTIL THE LOSS IS USED UP
OR THE TWENTIETH TAXABLE YEAR FOLLOWING THE LOSS YEAR, WHICHEVER COMES
FIRST.
(6) Where there are two or more allocated net operating losses, or
portions thereof, carried BACK OR CARRIED forward to be deducted in one
particular tax year from allocated business income, the earliest allo-
cated loss incurred must be applied first.
S 17. Subparagraph (ix) of paragraph (a) of subdivision 1 of section
210 of the tax law is amended by adding a new clause 7 to read as
follows:
(7) A TAXPAYER MAY ELECT TO WAIVE THE ENTIRE CARRYBACK PERIOD WITH
RESPECT TO A NET OPERATING LOSS. SUCH ELECTION MUST BE MADE ON THE
TAXPAYER'S ORIGINAL TIMELY FILED RETURN (DETERMINED WITH REGARD TO
EXTENSIONS) FOR THE TAXABLE YEAR OF THE NET OPERATING LOSS FOR WHICH THE
ELECTION IS TO BE IN EFFECT. ONCE AN ELECTION IS MADE FOR A TAXABLE
YEAR, IT SHALL BE IRREVOCABLE FOR THAT TAXABLE YEAR. A SEPARATE ELECTION
MUST BE MADE FOR EACH LOSS YEAR. THIS ELECTION APPLIES TO ALL MEMBERS OF
A COMBINED GROUP.
S. 4209 69
S 18. Paragraph (b) of subdivision 1 of section 210 of the tax law, as
amended by section 12 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(b) Capital base. (1) The amount prescribed by this paragraph shall be
computed at .15 percent for each dollar of the taxpayer's total business
capital, or the portion thereof allocated within the state as hereinaft-
er provided for taxable years beginning before January first, two thou-
sand sixteen. However, in the case of a cooperative housing corporation
as defined in the internal revenue code, the applicable rate shall be
.04 percent until taxable years beginning on or after January first, two
thousand twenty. The rate of tax for subsequent tax years shall be as
follows: .125 percent for taxable years beginning on or after January
first, two thousand sixteen and before January first, two thousand
seventeen; .100 percent for taxable years beginning on or after January
first, two thousand seventeen and before January first, two thousand
eighteen; .075 percent for taxable years beginning on or after January
first, two thousand eighteen and before January first, two thousand
nineteen; .050 percent for taxable years beginning on or after January
first, two thousand nineteen and before January first, two thousand
twenty; .025 percent for taxable years beginning on or after January
first, two thousand twenty and before January first, two thousand twen-
ty-one; and zero percent for years beginning on or after January first,
two thousand twenty-one. The rate of tax for a qualified New York
manufacturer [for tax years subsequent to taxable years beginning on or
after January first, two thousand fifteen and before January first, two
thousand sixteen] shall be .132 PERCENT FOR TAXABLE YEARS BEGINNING ON
OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN AND BEFORE JANUARY FIRST,
TWO THOUSAND SIXTEEN, .106 percent for taxable years beginning on or
after January first, two thousand sixteen and before January first, two
thousand seventeen, .085 percent for taxable years beginning on or after
January first, two thousand seventeen and before January first, two
thousand eighteen; .056 percent for taxable years beginning on or after
January first, two thousand eighteen and before January first, two thou-
sand nineteen; .038 percent for taxable years beginning on or after
January first, two thousand nineteen and before January first, thousand
twenty; .019 percent for taxable years beginning on or after January
first, two thousand twenty and before January first, two thousand twen-
ty-one; and zero percent for years beginning on or after January first,
two thousand twenty-one. In no event shall the amount prescribed by this
paragraph exceed three hundred fifty thousand dollars for qualified New
York manufacturers and for all other taxpayers five million dollars.
(2) For purposes of subparagraph one of this paragraph, the term
"manufacturer" shall mean a taxpayer which during the taxable year is
principally engaged in the production of goods by manufacturing, proc-
essing, assembling, refining, mining, extracting, farming, agriculture,
horticulture, floriculture, viticulture or commercial fishing. Moreover,
for purposes of computing the capital base in a combined report, the
combined group shall be considered a "manufacturer" for purposes of this
subparagraph only if the combined group during the taxable year is prin-
cipally engaged in the activities set forth in this subparagraph, or any
combination thereof. A taxpayer or, IN THE CASE OF A COMBINED REPORT, a
combined group shall be "principally engaged" in activities described
above if, during the taxable year, more than fifty percent of the gross
receipts of the taxpayer or combined group, respectively, are derived
from receipts from the sale of goods produced by such activities. In
computing a combined group's gross receipts, intercorporate receipts
S. 4209 70
shall be eliminated. A "qualified New York manufacturer" is a manufac-
turer that has property in New York that is described in subdivision one
of section [210-B] TWO HUNDRED TEN-B of this article and either (i) the
adjusted basis of that property for federal income tax purposes at the
close of the taxable year is at least one million dollars or (ii) all of
its real and personal property is located in New York. In addition, a
"qualified New York manufacturer" means a taxpayer that is defined as a
qualified emerging technology company under paragraph (c) of subdivision
one of section thirty-one hundred two-e of the public authorities law
regardless of the ten million dollar limitation expressed in subpara-
graph one of such paragraph. A taxpayer or, in the case of a combined
report, a combined group, that does not satisfy the principally engaged
test may be a qualified New York manufacturer if the taxpayer or the
combined group employs during the taxable year at least two thousand
five hundred employees in manufacturing in New York and the taxpayer or
the combined group has property in the state used in manufacturing, the
adjusted basis of which for federal income tax purposes at the close of
the taxable year is at least one hundred million dollars.
S 19. Subparagraph 1 of paragraph (d) of subdivision 1 of section 210
of the tax law, as amended by section 12 of part A of chapter 59 of the
laws of 2014, is amended to read as follows:
(1) (A) The amount prescribed by this paragraph for New York S corpo-
rations, OTHER THAN NEW YORK S CORPORATIONS THAT ARE QUALIFIED NEW YORK
MANUFACTURERS OR QUALIFIED EMERGING TECHNOLOGY COMPANIES, will be deter-
mined in accordance with the following table:
If New York receipts are: The fixed dollar minimum tax is:
not more than $100,000 $ 25
more than $100,000 but not over $250,000 $ 50
more than $250,000 but not over $500,000 $ 175
more than $500,000 but not over $1,000,000 $ 300
more than $1,000,000 but not over $5,000,000 $1,000
more than $5,000,000 but not over $25,000,000 $3,000
Over $25,000,000 $4,500
(B) PROVIDED FURTHER, THE AMOUNT PRESCRIBED BY THIS PARAGRAPH FOR NEW
YORK S CORPORATIONS THAT ARE QUALIFIED NEW YORK MANUFACTURES, AS DEFINED
IN SUBPARAGRAPH (VI) OF PARAGRAPH (A) OF THIS SUBDIVISION, AND FOR NEW
YORK S CORPORATIONS THAT ARE QUALIFIED EMERGING TECHNOLOGY COMPANIES
UNDER PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION THIRTY-ONE HUNDRED
TWO-E OF THE PUBLIC AUTHORITIES LAW REGARDLESS OF THE TEN MILLION DOLLAR
LIMITATION EXPRESSED IN SUBPARAGRAPH ONE OF SUCH PARAGRAPH (C), WILL BE
DETERMINED IN ACCORDANCE WITH THE FOLLOWING TABLES.
FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2015 AND BEFORE JANU-
ARY 1, 2016:
IF NEW YORK RECEIPTS ARE: THE FIXED DOLLAR MINIMUM TAX IS:
NOT MORE THAN $100,000 $ 22
MORE THAN $100,000 BUT NOT OVER $250,000 $ 44
MORE THAN $250,000 BUT NOT OVER $500,000 $ 153
MORE THAN $500,000 BUT NOT OVER $1,000,000 $ 263
MORE THAN $1,000,000 BUT NOT OVER $5,000,000 $ 877
MORE THAN $5,000,000 BUT NOT OVER $25,000,000 $2,631
OVER $25,000,000 $3,947
S. 4209 71
FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2016 AND BEFORE JANU-
ARY 1, 2018:
IF NEW YORK RECEIPTS ARE: THE FIXED DOLLAR MINIMUM TAX IS:
NOT MORE THAN $100,000 $ 21
MORE THAN $100,000 BUT NOT OVER $250,000 $ 42
MORE THAN $250,000 BUT NOT OVER $500,000 $ 148
MORE THAN $500,000 BUT NOT OVER $1,000,000 $ 254
MORE THAN $1,000,000 BUT NOT OVER $5,000,000 $ 846
MORE THAN $5,000,000 BUT NOT OVER $25,000,000 $2,538
OVER $25,000,000 $3,807
FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2018:
IF NEW YORK RECEIPTS ARE: THE FIXED DOLLAR MINIMUM TAX IS:
NOT MORE THAN $100,000 $ 19
MORE THAN $100,000 BUT NOT OVER $250,000 $ 38
MORE THAN $250,000 BUT NOT OVER $500,000 $ 131
MORE THAN $500,000 BUT NOT OVER $1,000,000 $ 225
MORE THAN $1,000,000 BUT NOT OVER $5,000,000 $ 750
MORE THAN $5,000,000 BUT NOT OVER $25,000,000 $2,250
OVER $25,000,000 $3,375
(C) Provided further, the amount prescribed by this paragraph for a
qualified New York manufacturer, as defined in subparagraph (vi) of
paragraph (a) of this subdivision, and a qualified emerging technology
company under paragraph (c) of subdivision one of section thirty-one
hundred two-e of the public authorities law regardless of the ten
million dollar limitation expressed in subparagraph one of such para-
graph (c), THAT IS NOT A NEW YORK S CORPORATION, will be determined in
accordance with the following tables[:
For tax years beginning on or after January 1, 2014 and before January
1, 2015:
If New York receipts are: The fixed dollar minimum tax is:
not more than $100,000 $ 23
more than $100,000 but not over $250,000 $ 68
more than $250,000 but not over $500,000 $ 159
more than $500,000 but not over $1,000,000 $ 454
more than $1,000,000 but not over $5,000,000 $1,362
more than $5,000,000 but not over $25,000,000 $3,178
Over $25,000,000 $4,500]
For tax years beginning on or after January 1, 2015 and before January
1, 2016:
If New York receipts are: The fixed dollar minimum tax is:
not more than $100,000 $ 22
more than $100,000 but not over $250,000 $ 66
more than $250,000 but not over $500,000 $ 153
more than $500,000 but not over $1,000,000 $ 439
more than $1,000,000 but not over $5,000,000 $1,316
more than $5,000,000 but not over $25,000,000 $3,070
Over $25,000,000 $4,385
S. 4209 72
For tax years beginning on or after January 1, 2016 and before January
1, 2018:
If New York receipts are: The fixed dollar minimum tax is:
not more than $100,000 $ 21
more than $100,000 but not over $250,000 $ 63
more than $250,000 but not over $500,000 $ 148
more than $500,000 but not over $1,000,000 $ 423
more than $1,000,000 but not over $5,000,000 $1,269
more than $5,000,000 but not over $25,000,000 $2,961
Over $25,000,000 $4,230
For tax years beginning on or after January 1, 2018:
If New York receipts are: The fixed dollar minimum tax is:
not more than $100,000 $ 19
more than $100,000 but not over $250,000 $ 56
more than $250,000 but not over $500,000 $ 131
more than $500,000 but not over $1,000,000 $ 375
more than $1,000,000 but not over $5,000,000 $1,125
more than $5,000,000 but not over $25,000,000 $2,625
Over $25,000,000 $3,750
(D) Otherwise, FOR ALL OTHER TAXPAYERS NOT COVERED BY CLAUSES (A), (B)
AND (C) OF THIS SUBPARAGRAPH, the amount prescribed by this paragraph
will be determined in accordance with the following table:
If New York receipts are: The fixed dollar minimum tax is:
not more than $100,000 $ 25
more than $100,000 but not over $250,000 $ 75
more than $250,000 but not over $500,000 $ 175
more than $500,000 but not over $1,000,000 $ 500
more than $1,000,000 but not over $5,000,000 $1,500
more than $5,000,000 but not over $25,000,000 $3,500
more than $25,000,000 but not over $50,000,000 $5,000
more than $50,000,000 but not over $100,000,000 $10,000
more than $100,000,000 but not over $250,000,000 $20,000
more than $250,000,000 but not over $500,000,000 $50,000
more than $500,000,000 but not over $1,000,000,000 $100,000
Over $1,000,000,000 $200,000
(E) For purposes of this paragraph, New York receipts are the receipts
included in the numerator of the apportionment factor determined under
section two hundred ten-A for the taxable year.
S 20. Paragraph (f) of subdivision 1 of section 210 of the tax law, as
amended by section 12 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(f) For purposes of this section, the term "small business taxpayer"
shall mean a taxpayer (i) which has an entire net income of not more
than three hundred ninety thousand dollars for the taxable year; (ii)
the aggregate amount of money and other property received by the corpo-
ration for stock, as a contribution to capital, and as paid-in surplus,
does not exceed one million dollars; (iii) which is not part of an
affiliated group, as defined in section 1504 of the internal revenue
code, unless such group, if it had filed a report under this article on
a combined basis, would have itself qualified as a "small business
S. 4209 73
taxpayer" pursuant to this subdivision; and (iv) which has an average
number of individuals, excluding general executive officers, employed
full-time in the state during the taxable year of one hundred or fewer.
If the taxable period to which subparagraph (i) of this paragraph
applies is less than twelve months, entire net income under such subpar-
agraph shall be placed on an annual basis by multiplying the entire net
income by twelve and dividing the result by the number of months in the
period. For purposes of subparagraph (ii) of this paragraph, the amount
taken into account with respect to any property other than money shall
be the amount equal to the adjusted basis to the corporation of such
property for determining gain, reduced by any liability to which the
property was subject or which was assumed by the corporation. The deter-
mination under the preceding sentence shall be made as of the time the
property was received by the corporation. For purposes of subparagraph
[(iii)] (IV) of this [section] PARAGRAPH, "average number of individ-
uals, excluding general executive officers, employed full-time" shall be
computed by ascertaining the number of such individuals employed by the
taxpayer on the thirty-first day of March, the thirtieth day of June,
the thirtieth day of September and the thirty-first day of December
during each taxable year or other applicable period, by adding together
the number of such individuals ascertained on each of such dates and
dividing the sum so obtained by the number of such dates occurring with-
in such taxable year or other applicable period. An individual employed
full-time means an employee in a job consisting of at least thirty-five
hours per week, or two or more employees who are in jobs that together
constitute the equivalent of a job at least thirty-five hours per week
(full-time equivalent). Full-time equivalent employees in the state
[includes] INCLUDE all employees regularly connected with or working out
of an office or place of business of the taxpayer within the state.
S 21. Subdivision 1 of section 210-A of the tax law, as added by
section 16 of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
1. General. Business income and capital shall be apportioned to the
state by the apportionment factor determined pursuant to this section.
The apportionment factor is a fraction, determined by including only
those receipts, net income, net gains, and other items described in this
section that are included in the computation of the taxpayer's business
income (DETERMINED WITHOUT REGARD TO THE MODIFICATION PROVIDED IN
SUBPARAGRAPH NINETEEN OF PARAGRAPH (A) OF SUBDIVISION NINE OF SECTION
TWO HUNDRED EIGHT OF THIS ARTICLE) for the taxable year. The numerator
of the apportionment fraction shall be equal to the sum of all the
amounts required to be included in the numerator pursuant to the
provisions of this section and the denominator of the apportionment
fraction shall be equal to the sum of all the amounts required to be
included in the denominator pursuant to the provisions of this section.
S 22. Paragraph (c) of subdivision 2 of section 210-A of the tax law,
as added by section 16 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(c) Receipts from sales of tangible personal property and electricity
that are traded as commodities, as [described] THE TERM "COMMODITY" IS
DEFINED in section 475 of the internal revenue code, are included in the
apportionment fraction in accordance with clause (I) of subparagraph two
of paragraph (a) of subdivision five of this section.
S 23. Paragraph 1 of paragraph (a) of subdivision 5 of section 210-A
of the tax law, as added by section 16 of part A of chapter 59 of the
laws of 2014, is amended to read as follows:
S. 4209 74
(1) Fixed percentage method for qualified financial instruments. In
determining the inclusion of receipts and net gains from qualified
financial instruments in the apportionment fraction, taxpayers may elect
to use the fixed percentage method described in this subparagraph for
qualified financial instruments. The election is irrevocable, applies to
all qualified financial instruments, and must be made on an annual basis
on the taxpayer's original, timely filed return. If the taxpayer elects
the fixed percentage method, then all income, gain or loss, INCLUDING
MARKED TO MARKET NET GAINS AS DEFINED IN CLAUSE (J) OF SUBPARAGRAPH TWO
OF THIS PARAGRAPH, from qualified financial instruments constitutes
business income, gain or loss. If the taxpayer does not elect to use the
fixed percentage method, then receipts and net gains are included in the
apportionment fraction in accordance with the customer sourcing method
described in subparagraph two of this paragraph. Under the fixed
percentage method, eight percent of all net income (not less than zero)
from qualified financial instruments is included in the numerator of the
apportionment fraction. All net income (not less than zero) from quali-
fied financial instruments is included in the denominator of the appor-
tionment fraction.
S 24. Subclause (iv) of clause (A) of subparagraph 2 of paragraph (a)
of subdivision 5 of section 210-A of the tax law, as added by section 16
of part A of chapter 59 of the laws of 2014, is amended to read as
follows:
(iv) Net gains (not less than zero) from sales of loans not secured by
real property are included in the numerator of the apportionment frac-
tion as provided in this subclause. The amount of net gains from the
sale of loans not secured by real property included in the numerator of
the apportionment fraction is determined by multiplying the net gains by
a fraction, the numerator of which is the amount of gross proceeds from
sales of loans not secured by real property to purchasers located within
the state and the denominator of which is the amount of gross [receipts]
PROCEEDS from sales of loans not secured by real property to purchasers
located within and without the state. Gross proceeds shall be determined
after the deduction of any cost incurred to acquire the loans but shall
not be less than zero. Net gains (not less than zero) from sales of
loans not secured by real property are included in the denominator of
the apportionment fraction.
S 25. Clause (A) of subparagraph 2 of paragraph (a) of subdivision 5
of section 210-A of the tax law is amended by adding a new subclause (v)
to read as follows:
(V) FOR PURPOSES OF THIS SUBDIVISION, A LOAN IS SECURED BY REAL PROP-
ERTY IF FIFTY PERCENT OR MORE OF THE VALUE OF THE COLLATERAL USED TO
SECURE THE LOAN, WHEN VALUED AT FAIR MARKET VALUE AS OF THE TIME THE
LOAN WAS ENTERED INTO, CONSISTS OF REAL PROPERTY.
S 26. Subparagraph 2 of paragraph (a) of subdivision 5 of section
210-A of the tax law is amended by adding a new clause (J) to read as
follows:
(J) MARKED TO MARKET NET GAINS. (I) FOR PURPOSES OF THIS CLAUSE,
"MARKED TO MARKET" MEAN THAT A FINANCIAL INSTRUMENT IS, UNDER SECTION
475 OR SECTION 1256 OF THE INTERNAL REVENUE CODE, TREATED BY THE TAXPAY-
ER AS SOLD FOR ITS FAIR MARKET VALUE ON THE LAST BUSINESS DAY OF THE
TAXPAYER'S TAXABLE YEAR. "MARKED TO MARKET GAIN OR LOSS" MEANS THE GAIN
OR LOSS RECOGNIZED BY THE TAXPAYER UNDER SECTION 475 OR SECTION 1256 OF
THE INTERNAL REVENUE CODE BECAUSE THE FINANCIAL INSTRUMENT IS TREATED AS
SOLD FOR ITS FAIR MARKET VALUE ON THE LAST BUSINESS DAY OF THE TAXABLE
YEAR.
S. 4209 75
(II) THE AMOUNT OF MARKED TO MARKET NET GAINS (NOT LESS THAN ZERO)
FROM EACH TYPE OF FINANCIAL INSTRUMENT THAT IS MARKED TO MARKET INCLUDED
IN THE NUMERATOR OF THE APPORTIONMENT FRACTION IS DETERMINED BY MULTI-
PLYING THE MARKED TO MARKET NET GAINS (BUT NOT LESS THAN ZERO) FROM SUCH
TYPE OF THE FINANCIAL INSTRUMENT BY A FRACTION, THE NUMERATOR OF WHICH
IS THE NUMERATOR OF THE APPORTIONMENT FRACTION FOR THE NET GAINS FROM
THAT TYPE OF FINANCIAL INSTRUMENT DETERMINED UNDER THE APPLICABLE CLAUSE
OF THIS SUBPARAGRAPH AND THE DENOMINATOR OF WHICH IS THE DENOMINATOR OF
THE APPORTIONMENT FRACTION FOR THE NET GAINS FOR THAT TYPE OF FINANCIAL
INSTRUMENT DETERMINED UNDER THE APPLICABLE CLAUSE OF THIS SUBPARAGRAPH.
MARKED TO MARKET NET GAINS (NOT LESS THAN ZERO) FROM FINANCIAL INSTRU-
MENTS FOR WHICH THE NUMERATOR OF THE APPORTIONMENT FRACTION IS DETER-
MINED UNDER THE IMMEDIATELY PRECEDING SENTENCE ARE INCLUDED IN THE
DENOMINATOR OF THE APPORTIONMENT FRACTION.
(III) IF THE TYPE OF FINANCIAL INSTRUMENT THAT IS MARKED TO MARKET IS
NOT OTHERWISE SOURCED BY THE TAXPAYER UNDER THIS SUBPARAGRAPH, OR IF THE
TAXPAYER HAS A NET LOSS FROM THE SALES OF THAT TYPE OF FINANCIAL INSTRU-
MENT UNDER THE APPLICABLE CLAUSE OF THIS SUBPARAGRAPH, THE AMOUNT OF
MARKED TO MARKET NET GAINS (NOT LESS THAN ZERO) FROM THAT TYPE OF FINAN-
CIAL INSTRUMENT INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FRACTION
IS DETERMINED BY MULTIPLYING THE MARKED TO MARKET NET GAINS (BUT NOT
LESS THAN ZERO) FROM THAT TYPE OF FINANCIAL INSTRUMENT BY A FRACTION,
THE NUMERATOR OF WHICH IS THE SUM OF THE AMOUNT OF RECEIPTS INCLUDED IN
THE NUMERATOR OF THE APPORTIONMENT FRACTION UNDER CLAUSES (A), (B), (C),
(D), (E), (F), (G), (H) AND (I) OF THIS SUBPARAGRAPH AND SUBCLAUSE (II)
OF THIS CLAUSE, AND THE DENOMINATOR OF WHICH IS THE SUM OF THE AMOUNT OF
RECEIPTS INCLUDED IN THE DENOMINATOR OF THE APPORTIONMENT FRACTION UNDER
CLAUSES (A), (B), (C), (D), (E), (F), (G), (H) AND (I) AND SUBCLAUSE
(II) OF THIS CLAUSE. MARKED TO MARKET NET GAINS (NOT LESS THAN ZERO) FOR
WHICH THE AMOUNT TO BE INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT
FRACTION IS DETERMINED UNDER THE IMMEDIATELY PRECEDING SENTENCE ARE
INCLUDED IN THE DENOMINATOR OF THE APPORTIONMENT FRACTION.
S 27. Paragraph (e) of subdivision 5 of section 210-A of the tax law,
as added by section 16 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(e) For purposes of this subdivision, a taxpayer shall use the follow-
ing hierarchy to determine the commercial domicile of a business entity,
based on the information known to the taxpayer or information that would
be known upon reasonable inquiry: (i) [the location of the treasury
function of the business entity; (ii)] the seat of management and
control of the business entity; and [(iii)] (II) the billing address of
the business entity in the taxpayer's records. The taxpayer must exer-
cise due diligence before rejecting [a] THE FIRST method in this hierar-
chy and proceeding to the next method.
S 28. Section 210-A of the tax law is amended by adding a new subdivi-
sion 6-a to read as follows:
6-A. RECEIPTS FROM THE OPERATION OF VESSELS. RECEIPTS FROM THE OPERA-
TION OF VESSELS ARE INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FRAC-
TION AS FOLLOWS. THE AMOUNT OF RECEIPTS FROM THE OPERATION OF VESSELS
INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FRACTION IS DETERMINED BY
MULTIPLYING THE AMOUNT OF SUCH RECEIPTS BY A FRACTION, THE NUMERATOR OF
WHICH IS THE AGGREGATE NUMBER OF WORKING DAYS OF THE VESSELS OWNED OR
LEASED BY THE TAXPAYER IN TERRITORIAL WATERS OF THE STATE DURING THE
PERIOD COVERED BY THE TAXPAYER'S REPORT AND THE DENOMINATOR OF WHICH IS
THE AGGREGATE NUMBER OF WORKING DAYS OF ALL VESSELS OWNED OR LEASED BY
THE TAXPAYER DURING SUCH PERIOD.
S. 4209 76
S 29. The opening paragraph of clause (A) of subparagraph 1 of para-
graph (b) of subdivision 7 of section 210-A of the tax law, as added by
section 16 of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
The portion of receipts of a taxpayer from aviation services (other
than services described in paragraph (a) of this subdivision, BUT
INCLUDING THE RECEIPTS OF A QUALIFIED AIR FREIGHT FORWARDER) to be
included in the numerator of the apportionment fraction shall be deter-
mined by multiplying its receipts from such aviation services by a
percentage which is equal to the arithmetic average of the following
three percentages:
S 30. Paragraph (b) of subdivision 7 of section 210-A of the tax law
is amended by adding a new subparagraph 3 to read as follows:
(3) A CORPORATION IS A QUALIFIED AIR FREIGHT FORWARDER WITH RESPECT TO
ANOTHER CORPORATION:
(A) IF IT OWNS OR CONTROLS EITHER DIRECTLY OR INDIRECTLY ALL OF THE
CAPITAL STOCK OF SUCH OTHER CORPORATION, OR IF ALL OF ITS CAPITAL STOCK
IS OWNED OR CONTROLLED EITHER DIRECTLY OR INDIRECTLY BY SUCH OTHER
CORPORATION, OR IF ALL OF THE CAPITAL STOCK OF BOTH CORPORATIONS IS
OWNED OR CONTROLLED EITHER DIRECTLY OR INDIRECTLY BY THE SAME INTERESTS,
(B) IF IT IS PRINCIPALLY ENGAGED IN THE BUSINESS OF AIR FREIGHT
FORWARDING, AND
(C) IF ITS AIR FREIGHT FORWARDING BUSINESS IS CARRIED ON PRINCIPALLY
WITH THE AIRLINE OR AIRLINES OPERATED BY SUCH OTHER CORPORATION.
S 31. Subparagraph (i) of paragraph (b) and paragraph (d) of subdivi-
sion 1 of section 210-B of the tax law, as added by section 17 of part A
of chapter 59 of the laws of 2014, are amended to read as follows:
(i) A credit shall be allowed under this subdivision with respect to
tangible personal property and other tangible property, including build-
ings and structural components of buildings, which are: depreciable
pursuant to section one hundred sixty-seven of the internal revenue
code, have a useful life of four years or more, are acquired by purchase
as defined in section one hundred seventy-nine (d) of the internal
revenue code, have a situs in this state and are (A) principally used by
the taxpayer in the production of goods by manufacturing, processing,
assembling, refining, mining, extracting, farming, agriculture, horti-
culture, floriculture, viticulture or commercial fishing, (B) industrial
waste treatment facilities or air pollution control facilities, used in
the taxpayer's trade or business, (C) research and development property,
or (D) principally used in the ordinary course of the taxpayer's trade
or business as a broker or dealer in connection with the purchase or
sale (which shall include but not be limited to the issuance, entering
into, assumption, offset, assignment, termination, or transfer) of
stocks, bonds or other securities as defined in section four hundred
seventy-five (c)(2) of the Internal Revenue Code, or of commodities as
defined in section four hundred seventy-five (e) of the Internal Revenue
Code, (E) principally used in the ordinary course of the taxpayer's
trade or business of providing investment advisory services for a regu-
lated investment company as defined in section eight hundred fifty-one
of the Internal Revenue Code, or lending, loan arrangement or loan orig-
ination services to customers in connection with the purchase or sale
(which shall include but not be limited to the issuance, entering into,
assumption, offset, assignment, termination, or transfer) of securities
as defined in section four hundred seventy-five (c)(2) of the Internal
Revenue Code, (F) [originally] PRINCIPALLY used in the ordinary course
of the taxpayer's business as an exchange registered as a national secu-
S. 4209 77
rities exchange within the meaning of sections 3(a)(1) and 6(a) of the
Securities Exchange Act of 1934 or a board of trade as defined in
[section 1410(a)(1) of the New York Not-for-Profit Corporation Law]
SUBPARAGRAPH ONE OF PARAGRAPH (A) OF SECTION FOURTEEN HUNDRED TEN OF THE
NOT-FOR-PROFIT CORPORATION LAW or as an entity that is wholly owned by
one or more such national securities exchanges or boards of trade and
that provides automation or technical services thereto, or (G) princi-
pally used as a qualified film production facility including qualified
film production facilities having a situs in an empire zone designated
as such pursuant to article eighteen-B of the general municipal law,
where the taxpayer is providing three or more services to any qualified
film production company using the facility, including such services as a
studio lighting grid, lighting and grip equipment, multi-line phone
service, broadband information technology access, industrial scale elec-
trical capacity, food services, security services, and heating, venti-
lation and air conditioning. FOR PURPOSES OF CLAUSES (D), (E) AND (F) OF
THIS SUBPARAGRAPH, PROPERTY PURCHASED BY A TAXPAYER AFFILIATED WITH A
REGULATED BROKER, DEALER, REGISTERED INVESTMENT ADVISOR, NATIONAL SECU-
RITIES EXCHANGE OR BOARD OF TRADE, IS ALLOWED A CREDIT UNDER THIS SUBDI-
VISION IF THE PROPERTY IS USED BY ITS AFFILIATED REGULATED BROKER, DEAL-
ER, REGISTERED INVESTMENT ADVISOR, NATIONAL SECURITIES EXCHANGE OR BOARD
OF TRADE IN ACCORDANCE WITH THIS SUBDIVISION. FOR PURPOSES OF DETERMIN-
ING IF THE PROPERTY IS PRINCIPALLY USED IN QUALIFYING USES, THE USES BY
THE TAXPAYER DESCRIBED IN CLAUSES (D) AND (E) OF THIS SUBPARAGRAPH MAY
BE AGGREGATED. IN ADDITION, THE USES BY THE TAXPAYER, ITS AFFILIATED
REGULATED BROKER, DEALER AND REGISTERED INVESTMENT ADVISOR UNDER EITHER
OR BOTH OF THOSE CLAUSES MAY BE AGGREGATED. Provided, however, a taxpay-
er shall not be allowed the credit provided by clauses (D), (E) and (F)
of this subparagraph unless THE PROPERTY IS FIRST PLACED IN SERVICE
BEFORE OCTOBER FIRST, TWO THOUSAND FIFTEEN AND (i) eighty percent or
more of the employees performing the administrative and support func-
tions resulting from or related to the qualifying uses of such equipment
are located in this state or (ii) the average number of employees that
perform the administrative and support functions resulting from or
related to the qualifying uses of such equipment and are located in this
state during the taxable year for which the credit is claimed is equal
to or greater than ninety-five percent of the average number of employ-
ees that perform these functions and are located in this state during
the thirty-six months immediately preceding the year for which the cred-
it is claimed, or (iii) the number of employees located in this state
during the taxable year for which the credit is claimed is equal to or
greater than ninety percent of the number of employees located in this
state on December thirty-first, nineteen hundred ninety-eight or, if the
taxpayer was not a calendar year taxpayer in nineteen hundred ninety-
eight, the last day of its first taxable year ending after December
thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes
subject to tax in this state after the taxable year beginning in nine-
teen hundred ninety-eight, then the taxpayer is not required to satisfy
the employment test provided in the preceding sentence of this subpara-
graph for its first taxable year. For purposes of clause (iii) of this
subparagraph the employment test will be based on the number of employ-
ees located in this state on the last day of the first taxable year the
taxpayer is subject to tax in this state. If the uses of the property
must be aggregated to determine whether the property is principally used
in qualifying uses, then either each affiliate using the property must
satisfy this employment test or this employment test must be satisfied
S. 4209 78
through the aggregation of the employees of the taxpayer, its affiliated
regulated broker, dealer, and registered investment adviser using the
property. For purposes of this subdivision, the term "goods" shall not
include electricity.
(d) Except as otherwise provided in this paragraph, 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] FIXED DOLLAR MINIMUM AMOUNT PRESCRIBED IN PARAGRAPH
(d) of subdivision one of [this] section TWO HUNDRED TEN OF THIS
ARTICLE. However, if the amount of credit allowable under this subdivi-
sion for any taxable year reduces the tax to such amount OR IF THE
TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT,
any amount of credit allowed for a taxable year commencing prior to
January first, nineteen hundred eighty-seven and 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 but in no
event shall such credit be carried over to taxable years commencing on
or after January first, two thousand two, and any amount of credit
allowed for a taxable year commencing on or after January first, nine-
teen hundred eighty-seven and not deductible in such year may be carried
over to the fifteen taxable years next following such taxable year and
may be deducted from the taxpayer's tax for such year or years. In lieu
of such carryover, any such taxpayer which qualifies as a new business
under paragraph [(j)] (F) of this subdivision may elect to treat the
amount of such carryover as an overpayment of tax to be credited or
refunded in accordance with the provisions of section ten hundred eight-
y-six of this chapter, provided, however, the provisions of subsection
(c) of section ten hundred eighty-eight of this chapter notwithstanding,
no interest shall be paid thereon.
S 32. Subdivision 27 of section 210-B of the tax law, as added by
section 17 of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
27. Credits of New York S corporations. (a) General. Notwithstanding
the provisions of this section, no carryover of credit allowable in a
New York C year shall be deducted from the tax otherwise due under this
article in a New York S year, and no credit allowable in a New York S
year, or carryover of such credit, shall be deducted from the tax
imposed by this article. However, a New York S year shall be treated as
a taxable year for purposes of determining the number of taxable years
to which a credit may be carried over under this section. Notwithstand-
ing the first sentence of this subdivision, however, the credit for the
special additional mortgage recording tax shall be allowed as provided
in subdivision [fifteen] NINE of this section, and the carryover of any
such credit shall be determined without regard to whether the credit is
carried from a New York C year to a New York S year or vice-versa.
S 33. Subdivision 1, subparagraphs (i) and (ii) of paragraph (d) and
paragraphs (d-1) and (e) of subdivision 4, and subdivision 7 of section
210-C of the tax law, as added by section 18 of part A of chapter 59 of
the laws of 2014, are amended to read as follows:
1. Tax. (A) The tax on a combined report shall be the highest of (i)
the combined business income base multiplied by the tax rate specified
in paragraph (a) of subdivision one of section two hundred ten of this
article; (ii) the combined capital base multiplied by the tax rate spec-
ified in paragraph (b) of subdivision one of section two hundred ten of
this article, but not exceeding the limitation provided for in that
paragraph (b); or (iii) the fixed dollar minimum that is attributable to
S. 4209 79
the designated agent of the combined group. In addition, the tax on a
combined report shall include the fixed dollar minimum tax specified in
paragraph (d) of subdivision one of section two hundred ten of this
article for each member of the combined group, other than the designated
agent, that is a taxpayer.
(b) The combined business income base is the amount of the combined
business income of the combined group that is apportioned to the state,
reduced by any PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION AND ANY
net operating loss deduction for the combined group. The combined capi-
tal base is the amount of the combined capital of the combined group
that is apportioned to the state.
(i) A net operating loss deduction is allowed in computing the
combined business income base. Such deduction may reduce the tax on the
combined business income base to the higher of the tax on the combined
capital base or the fixed dollar minimum amount that is attributable to
the designated agent of the combined group. A combined net operating
loss deduction is equal to the amount of combined net operating loss or
losses from one or more taxable years that are carried forward OR
CARRIED BACK to a particular [income] TAXABLE year. A combined net oper-
ating loss is the combined business loss incurred in a particular taxa-
ble year multiplied by the combined apportionment factor for that year
determined as provided in subdivision five of this section.
(ii) The combined net operating loss deduction and combined net oper-
ating loss are also subject to the provisions contained in clauses one
through [six] SEVEN of subparagraph (ix) of paragraph (a) of subdivision
one of section two hundred ten of this article.
(d-1) A PRIOR net operating loss conversion subtraction is allowed in
computing the combined business income base, as provided in subparagraph
(viii) of paragraph (a) of subdivision one of section two hundred ten of
this article. Such subtraction may reduce the tax on the combined busi-
ness income base to the higher of the tax on the combined capital base
or the fixed dollar minimum amount that is attributable to the desig-
nated agent of the combined group.
(e) Any election made pursuant to paragraph (b) of subdivision six,
[and] paragraphs (b) and (c) of subdivision six-a of section two hundred
eight, AND ITEM (IV) OF SUBCLAUSE TWO OF CLAUSE (B) OF SUBPARAGRAPH
(VIII) AND CLAUSE SEVEN OF SUBPARAGRAPH (IX) OF PARAGRAPH (A) OF SUBDI-
VISION ONE OF SECTION TWO HUNDRED TEN of this article shall apply to all
members of the combined group.
7. Designated agent. Each combined group shall have one designated
agent FOR THE COMBINED GROUP, which shall be a taxpayer. [The designated
agent is the parent corporation of the combined group. If there is no
such parent corporation, or the parent corporation is not a taxpayer,
then another member of the combined group that is a taxpayer may be
appointed as the designated agent.] Only the designated agent may act on
behalf of the members of the combined group for matters relating to the
combined report.
S 34. Paragraph 1 of subdivision (c) of section 40 of the tax law, as
added by section 4 of part A of chapter 68 of the laws of 2013, is
amended to read as follows:
(1) ascertaining the percentage that the average value of the busi-
ness's real and tangible personal property, whether owned or rented to
it, in the tax-free NY area in which the business was located during the
period covered by the taxpayer's report or return bears to the average
value of the business's real and tangible personal property, whether
owned or rented to it, within the state during such period; provided
S. 4209 80
that the term "value of the business's real and tangible personal prop-
erty" shall have the same meaning as such term has in [subparagraph one
of] paragraph (a) of subdivision [three] TWO of section [two hundred
ten] TWO HUNDRED NINE-B of this chapter; and
S 35. Clause (ii) of subparagraph (B) of paragraph 2 of subdivision
(d) of section 40 of the tax law, as added by section 4 of part A of
chapter 68 of the laws of 2013, is amended to read as follows:
(ii) For purposes of article nine-A of this chapter, the term "part-
ner's income from the partnership" means partnership items of income,
gain, loss and deduction, and New York modifications thereto, entering
into [entire net] BUSINESS income [or minimum taxable income] and the
term "partner's entire income" means [entire net] BUSINESS income [or
minimum taxable income], allocated within the state. For purposes of
article twenty-two of this chapter, the term "partner's income from the
partnership" means partnership items of income, gain, loss and
deduction, and New York modifications thereto, entering into New York
adjusted gross income, and the term "partner's entire income" means New
York adjusted gross income.
S 36. Subparagraph (C) of paragraph 2 of subdivision (d) of section 40
of the tax law, as added by section 4 of part A of chapter 68 of the
laws of 2013, is amended to read as follows:
(C) (I) Where the taxpayer is a shareholder of a New York S corpo-
ration that is a business located in a tax-free NY area, the sharehold-
er's tax factor shall be that portion of the amount determined in para-
graph one of this subdivision that is attributable to the income of the
S corporation. Such attribution shall be made in accordance with the
ratio of the shareholder's income from the S corporation allocated with-
in the state, entering into New York adjusted gross income, to the
shareholder's New York adjusted gross income, or in accordance with such
other methods as the commissioner may prescribe as providing an appor-
tionment that reasonably reflects the portion of the shareholder's tax
attributable to the income of such business. The income of the S corpo-
ration allocated within the state shall be determined by multiplying the
income of the S corporation by [the] A business allocation factor
[computed under paragraph (a) of subdivision three of section two
hundred ten of this article without regard to subparagraph ten of such
paragraph (a)] THAT SHALL BE DETERMINED IN CLAUSE (II) OF THIS SUBPARA-
GRAPH. In no event may the ratio so determined exceed 1.0.
(II) THE BUSINESS ALLOCATION FACTOR FOR PURPOSES OF THIS SUBPARAGRAPH
SHALL BE COMPUTED BY ADDING TOGETHER THE PROPERTY FACTOR SPECIFIED IN
SUBCLAUSE (I) OF THIS CLAUSE, THE WAGE FACTOR SPECIFIED IN SUBCLAUSE
(II) OF THIS CLAUSE AND THE APPORTIONMENT FACTOR DETERMINED UNDER
SECTION TWO HUNDRED TEN-A OF THIS CHAPTER AND DIVIDING BY THREE.
(I) THE PROPERTY FACTOR SHALL BE DETERMINED BY ASCERTAINING THE
PERCENTAGE THAT THE AVERAGE VALUE OF THE BUSINESS'S REAL AND TANGIBLE
PERSONAL PROPERTY, WHETHER OWNED OR RENTED TO IT, WITHIN THE STATE
DURING THE PERIOD COVERED BY THE TAXPAYER'S REPORT OR RETURN BEARS TO
THE AVERAGE VALUE OF THE BUSINESS'S REAL AND TANGIBLE PERSONAL PROPERTY,
WHETHER OWNED OR RENTED TO IT, WITHIN AND WITHOUT THE STATE DURING SUCH
PERIOD; PROVIDED THAT THE TERM "VALUE OF THE BUSINESS'S REAL AND TANGI-
BLE PERSONAL PROPERTY" SHALL HAVE THE SAME MEANING AS SUCH TERM HAS IN
PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION TWO HUNDRED NINE-B OF THIS
CHAPTER.
(II) THE WAGE FACTOR SHALL BE DETERMINED BY ASCERTAINING THE PERCENT-
AGE THAT THE TOTAL WAGES, SALARIES AND OTHER PERSONAL SERVICE COMPEN-
SATION, SIMILARLY COMPUTED, DURING SUCH PERIOD OF EMPLOYEES, EXCEPT
S. 4209 81
GENERAL EXECUTIVE OFFICERS, EMPLOYED AT THE BUSINESS'S LOCATION OR
LOCATIONS WITHIN THE STATE, BEARS TO THE TOTAL WAGES, SALARIES AND OTHER
PERSONAL SERVICE COMPENSATION, SIMILARLY COMPUTED, DURING SUCH PERIOD,
OF ALL THE BUSINESS'S EMPLOYEES WITHIN AND WITHOUT THE STATE, EXCEPT
GENERAL EXECUTIVE OFFICERS.
S 37. Subparagraph (B) of paragraph 3 of subdivision (d) of section 40
of the tax law, as added by section 4 of part A of chapter 68 of the
laws of 2013, is amended to read as follows:
(B) The term "income of the business located in a tax-free NY area"
means [entire net] BUSINESS income [or minimum taxable income] calcu-
lated as if the taxpayer was filing separately and the term "combined
group's income" means [entire net] BUSINESS income [or minimum taxable
income] as shown on the combined report, allocated within the state.
S 38. Paragraph 1 of subdivision (e) of section 40 of the tax law, as
added by section 4 of part A of chapter 68 of the laws of 2013, is
amended to read as follows:
(1) Article 9-A: section [210] 210-B, subdivision [47] 41.
S 39. Paragraph 1 of subsection (i) of section 660 of the tax law, as
amended by section 74 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(1) Notwithstanding the provisions in subsection (a) of this section,
in the case of an eligible S corporation for which the election under
subsection (a) of this section is not in effect for the current taxable
year, the shareholders of an eligible S corporation are deemed to have
made that election effective for the eligible S corporation's entire
current taxable year, if the eligible S corporation's investment income
for the current taxable year is more than fifty percent of its federal
gross income for such year. In determining WHETHER an eligible S [corpo-
ration's investment income] CORPORATION IS DEEMED TO HAVE MADE THAT
ELECTION, the [investment] income of a qualified subchapter S subsidiary
owned directly or indirectly by the eligible S corporation shall be
included WITH THE INCOME OF THE ELIGIBLE S CORPORATION.
S 40. This act shall take effect immediately and shall be deemed to be
in full force and effect on the same date as part A of chapter 59 of the
laws of 2014.
PART U
Section 1. Paragraph 33 of subdivision (a) of section 1115 of the tax
law, as added by section 99 of part A of chapter 389 of the laws of
1997, is amended to read as follows:
(33) Wine or wine product, AND THE BOTTLES, CORKS, CAPS, AND LABELS
USED TO PACKAGE SUCH WINE OR WINE PRODUCT, furnished by the official
agent of a farm winery, winery, wholesaler, or importer at a wine tast-
ing held in accordance with [section eighty of] the alcoholic beverage
control law to a customer or prospective customer who consumes such wine
at such wine tasting.
S 2. Section 1118 of the tax law is amended by adding a new subdivi-
sion (13) to read as follows:
(13) IN RESPECT TO THE USE OF THE FOLLOWING ITEMS AT A TASTING HELD BY
A LICENSED BREWERY, FARM BREWERY, CIDER PRODUCER, FARM CIDERY, DISTIL-
LERY OR FARM DISTILLERY IN ACCORDANCE WITH THE ALCOHOLIC BEVERAGE
CONTROL LAW: (I) THE ALCOHOLIC BEVERAGE OR BEVERAGES AUTHORIZED BY THE
ALCOHOLIC BEVERAGE CONTROL LAW TO BE FURNISHED AT NO CHARGE TO A CUSTOM-
ER OR PROSPECTIVE CUSTOMER AT SUCH TASTING FOR CONSUMPTION AT SUCH TAST-
S. 4209 82
ING; AND (II) BOTTLES, CORKS, CAPS AND LABELS USED TO PACKAGE SUCH ALCO-
HOLIC BEVERAGES.
S 3. This act shall take effect immediately, provided, however,
section two of this act shall take effect June 1, 2015 and shall apply
in accordance with the transition provisions of section 1106 and 1217 of
the tax law.
PART V
Section 1. Paragraph 22 of subdivision (b) of section 1101 of the tax
law, as amended by chapter 651 of the laws of 1999, is amended to read
as follows:
(22) (A) "Prepaid telephone calling service" means the right to exclu-
sively purchase telecommunication services, that must be paid for in
advance and enable the origination of one or more intrastate, interstate
or international telephone calls using an access number (such as a toll
free network access number) and/or authorization code, whether manually
or electronically dialed, for which payment to a vendor must be made in
advance, whether or not that right is represented by the transfer by the
vendor to the purchaser of an item of tangible personal property. SUCH
TERM INCLUDES A PREPAID MOBILE CALLING SERVICE. In no event shall a
credit card constitute a prepaid telephone calling service. If the sale
or recharge of a prepaid telephone calling service does not take place
at the vendor's place of business, it shall be conclusively determined
to take place at the purchaser's shipping address or, if there is no
item shipped, at the purchaser's billing address or the location associ-
ated with the purchaser's mobile telephone number, OR, IF THE VENDOR
DOES NOT HAVE THE ADDRESS OR THE LOCATION ASSOCIATED WITH THE CUSTOMER'S
MOBILE TELEPHONE NUMBER, AT SUCH ADDRESS, AS APPROVED BY THE COMMISSION-
ER, THAT REASONABLY REFLECTS THE CUSTOMER'S LOCATION AT THE TIME OF THE
SALE OR RECHARGE.
(B) "PREPAID MOBILE CALLING SERVICE" MEANS THE RIGHT TO USE A COMMER-
CIAL MOBILE RADIO SERVICE, WHETHER OR NOT SOLD WITH OTHER PROPERTY OR
SERVICES, THAT MUST BE PAID FOR IN ADVANCE AND IS SOLD IN PREDETERMINED
UNITS OR DOLLARS THAT DECLINE WITH USE IN A KNOWN AMOUNT, WHETHER OR NOT
THAT RIGHT IS REPRESENTED BY OR INCLUDES THE TRANSFER TO THE PURCHASER
OF AN ITEM OF TANGIBLE PERSONAL PROPERTY.
S 2. This act shall take effect immediately.
PART W
Intentionally Omitted
PART X
Intentionally Omitted
PART Y
Intentionally Omitted
PART Z
S. 4209 83
Section 1. Subdivision (ee) of section 1115 of the tax law, as added
by chapter 306 of the laws of 2005, is amended to read as follows:
(ee) THE FOLLOWING SHALL BE EXEMPT FROM TAX UNDER THIS ARTICLE: (1)
Receipts from the retail sale of, AND CONSIDERATION GIVEN OR CONTRACTED
TO BE GIVEN FOR, OR FOR THE USE OF, residential solar energy systems
equipment and [of] the service of installing such systems [shall be
exempt from tax under this article]. For the purposes of this subdivi-
sion, "residential solar energy systems equipment" shall mean an
arrangement or combination of components installed in a residence that
utilizes solar radiation to produce energy designed to provide heating,
cooling, hot water and/or electricity. Such arrangement or components
shall not include equipment that is part of a non-solar energy system or
which uses any sort of recreational facility or equipment as a storage
medium.
(2) RECEIPTS FROM THE SALE OF ELECTRICITY BY A PERSON PRIMARILY
ENGAGED IN THE SALE OF SOLAR ENERGY SYSTEM EQUIPMENT AND/OR ELECTRICITY
GENERATED BY SUCH EQUIPMENT PURSUANT TO A WRITTEN AGREEMENT UNDER WHICH
SUCH ELECTRICITY IS GENERATED BY RESIDENTIAL SOLAR ENERGY SYSTEM EQUIP-
MENT THAT IS: (A) OWNED BY A PERSON OTHER THAN THE PURCHASER OF SUCH
ELECTRICITY; (B) INSTALLED ON RESIDENTIAL PROPERTY OF THE PURCHASER OF
SUCH ELECTRICITY; AND (C) USED TO PROVIDE HEATING, COOLING, HOT WATER OR
ELECTRICITY TO SUCH PROPERTY.
S 2. Subdivision (ii) of section 1115 of the tax law, as amended by
chapter 13 of the laws of 2013, is amended to read as follows:
(ii) THE FOLLOWING SHALL BE EXEMPT FROM TAX UNDER THIS ARTICLE: (1)
Receipts from the retail sale of, AND CONSIDERATION GIVEN OR CONTRACTED
TO BE GIVEN FOR, OR FOR THE USE OF, commercial solar energy systems
equipment and [of] the service of installing such systems [shall be
exempt from taxes imposed by sections eleven hundred five and eleven
hundred ten of this article]. For the purposes of this subdivision,
"commercial solar energy systems equipment" shall mean an arrangement or
combination of components installed upon non-residential premises that
utilize solar radiation to produce energy designed to provide heating,
cooling, hot water and/or electricity. Such arrangement or components
shall not include equipment that is part of a non-solar energy system.
(2) RECEIPTS FROM THE SALE OF ELECTRICITY BY A PERSON PRIMARILY
ENGAGED IN THE SALE OF SOLAR ENERGY SYSTEM EQUIPMENT AND/OR ELECTRICITY
GENERATED BY SUCH EQUIPMENT PURSUANT TO A WRITTEN AGREEMENT UNDER WHICH
THE ELECTRICITY IS GENERATED BY COMMERCIAL SOLAR ENERGY SYSTEM EQUIPMENT
THAT IS: (A) OWNED BY A PERSON OTHER THAN THE PURCHASER OF SUCH ELEC-
TRICITY; (B) INSTALLED ON THE NON-RESIDENTIAL PREMISES OF THE PURCHASER
OF SUCH ELECTRICITY; AND (C) USED TO PROVIDE HEATING, COOLING, HOT WATER
OR ELECTRICITY TO SUCH PREMISES.
S 3. Paragraphs 1 and 4 of subdivision (a) of section 1210 of the tax
law, paragraph 1 as amended by chapter 13 of the laws of 2012, and para-
graph 4 as amended by chapter 200 of the laws of 2009, are amended to
read as follows:
(1) Either, all of the taxes described in article twenty-eight of this
chapter, at the same uniform rate, as to which taxes all provisions of
the local laws, ordinances or resolutions imposing such taxes shall be
identical, except as to rate and except as otherwise provided, with the
corresponding provisions in such article twenty-eight, including the
definition and exemption provisions of such article, so far as the
provisions of such article twenty-eight can be made applicable to the
taxes imposed by such city or county and with such limitations and
special provisions as are set forth in this article. The taxes author-
S. 4209 84
ized under this subdivision may not be imposed by a city or county
unless the local law, ordinance or resolution imposes such taxes so as
to include all portions and all types of receipts, charges or rents,
subject to state tax under sections eleven hundred five and eleven
hundred ten of this chapter, except as otherwise provided. (i) Any local
law, ordinance or resolution enacted by any city of less than one
million or by any county or school district, imposing the taxes author-
ized by this subdivision, shall, notwithstanding any provision of law to
the contrary, exclude from the operation of such local taxes all sales
of tangible personal property for use or consumption directly and
predominantly in the production of tangible personal property, gas,
electricity, refrigeration or steam, for sale, by manufacturing, proc-
essing, generating, assembly, refining, mining or extracting; and all
sales of tangible personal property for use or consumption predominantly
either in the production of tangible personal property, for sale, by
farming or in a commercial horse boarding operation, or in both; and,
unless such city, county or school district elects otherwise, shall omit
the provision for credit or refund contained in clause six of subdivi-
sion (a) or subdivision (d) of section eleven hundred nineteen of this
chapter. (ii) Any local law, ordinance or resolution enacted by any
city, county or school district, imposing the taxes authorized by this
subdivision, shall omit the residential solar energy systems equipment
AND ELECTRICITY exemption provided for in subdivision (ee), the commer-
cial solar energy systems equipment AND ELECTRICITY exemption provided
for in subdivision (ii) 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 AND ELECTRICITY exemption, such commercial solar energy
systems equipment AND ELECTRICITY exemption or such clothing and foot-
wear exemption.
(4) Notwithstanding any other provision of law to the contrary, any
local law enacted by any city of one million or more that imposes the
taxes authorized by this subdivision (i) may omit the exception provided
in subparagraph (ii) of paragraph three of subdivision (c) of section
eleven hundred five of this chapter for receipts from laundering, dry-
cleaning, tailoring, weaving, pressing, shoe repairing and shoe shining;
(ii) may impose the tax described in paragraph six of subdivision (c) of
section eleven hundred five of this chapter at a rate in addition to the
rate prescribed by this section not to exceed two percent in multiples
of one-half of one percent; (iii) shall provide that the tax described
in paragraph six of subdivision (c) of section eleven hundred five of
this chapter does not apply to facilities owned and operated by the city
or an agency or instrumentality of the city or a public corporation the
majority of whose members are appointed by the chief executive officer
of the city or the legislative body of the city or both of them; (iv)
shall not include any tax on receipts from, or the use of, the services
described in paragraph seven of subdivision (c) of section eleven
hundred five of this chapter; (v) shall provide that, for purposes of
the tax described in subdivision (e) of section eleven hundred five of
this chapter, "permanent resident" means any occupant of any room or
rooms in a hotel for at least one hundred eighty consecutive days with
regard to the period of such occupancy; (vi) may omit the exception
provided in paragraph one of subdivision (f) of section eleven hundred
five of this chapter for charges to a patron for admission to, or use
of, facilities for sporting activities in which the patron is to be a
S. 4209 85
participant, such as bowling alleys and swimming pools; (vii) may
provide the clothing and footwear exemption in paragraph thirty of
subdivision (a) of section eleven hundred fifteen of this chapter, and,
notwithstanding any provision of subdivision (d) of this section to the
contrary, any local law providing for such exemption or repealing such
exemption, may go into effect on any one of the following dates: March
first, June first, September first or December first; (viii) shall omit
the exemption provided in paragraph forty-one of subdivision (a) of
section eleven hundred fifteen of this chapter; (ix) shall omit the
exemption provided in subdivision (c) of section eleven hundred fifteen
of this chapter insofar as it applies to fuel, gas, electricity, refrig-
eration and steam, and gas, electric, refrigeration and steam service of
whatever nature for use or consumption directly and exclusively in the
production of gas, electricity, refrigeration or steam; (x) shall omit,
unless such city elects otherwise, the provision for refund or credit
contained in clause six of subdivision (a) or in subdivision (d) of
section eleven hundred nineteen of this chapter; [and] (xi) shall
provide that section eleven hundred five-C of this chapter does not
apply to such taxes, and shall tax receipts from every sale, other than
sales for resale, of gas service or electric service of whatever nature,
including the transportation, transmission or distribution of gas or
electricity, even if sold separately, at the rate set forth in clause
one of subparagraph (i) of the opening paragraph of this section; (XII)
SHALL OMIT, UNLESS SUCH CITY ELECTS OTHERWISE, THE EXEMPTION FOR RESI-
DENTIAL SOLAR ENERGY SYSTEMS EQUIPMENT AND ELECTRICITY PROVIDED IN
SUBDIVISION (EE) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER; AND
(XIII) SHALL OMIT, UNLESS SUCH CITY ELECTS OTHERWISE, THE EXEMPTION FOR
COMMERCIAL SOLAR ENERGY SYSTEMS EQUIPMENT AND ELECTRICITY PROVIDED IN
SUBDIVISION (II) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER. ANY
REFERENCE IN THIS CHAPTER OR IN ANY LOCAL LAW, ORDINANCE OR RESOLUTION
ENACTED PURSUANT TO THE AUTHORITY OF THIS ARTICLE TO FORMER SUBDIVISIONS
(N) OR (P) OF THIS SECTION SHALL BE DEEMED TO BE A REFERENCE TO CLAUSES
(XII) OR (XIII) OF THIS PARAGRAPH, RESPECTIVELY, AND ANY SUCH LOCAL LAW,
ORDINANCE OR RESOLUTION THAT PROVIDES THE EXEMPTIONS PROVIDED IN SUCH
FORMER SUBDIVISIONS (N) AND/OR (P) SHALL BE DEEMED INSTEAD TO PROVIDE
THE EXEMPTIONS PROVIDED IN CLAUSES (XII) AND/OR (XIII) OF THIS
PARAGRAPH.
S 4. Paragraph 1 and subparagraph (i) of paragraph 3 of subdivision
(b) of section 1210 of the tax law, paragraph 1 as amended by section 36
of part S-1 of chapter 57 of the laws of 2009, and subparagraph (i) of
paragraph 3 as amended by section 3 of part B of chapter 35 of the laws
of 2006, are amended to read as follows:
(1) Or, one or more of the taxes described in subdivisions (b), (d),
(e) and (f) of section eleven hundred five of this chapter, at the same
uniform rate, including the transitional provisions in section eleven
hundred six of this chapter covering such taxes, but not the taxes
described in subdivisions (a) and (c) of section eleven hundred five of
this chapter. Provided, further, that where the tax described in subdi-
vision (b) of section eleven hundred five of this chapter is imposed,
the compensating use taxes described in clauses (E), (G) and (H) of
subdivision (a) of section eleven hundred ten of this chapter shall also
be imposed. Provided, further, that where the taxes described in subdi-
vision (b) of section eleven hundred five are imposed, such taxes shall
omit: (A) the provision for refund or credit contained in subdivision
(d) of section eleven hundred nineteen of this chapter with respect to
such taxes described in such subdivision (b) of section eleven hundred
S. 4209 86
five unless such city or county elects to provide such provision or, if
so elected, to repeal such provision; (B) THE EXEMPTION PROVIDED IN
PARAGRAPH TWO OF SUBDIVISION (EE) OF SECTION ELEVEN HUNDRED FIFTEEN OF
THIS CHAPTER UNLESS SUCH COUNTY OR CITY ELECTS OTHERWISE; AND (C) THE
EXEMPTION PROVIDED IN PARAGRAPH TWO OF SUBDIVISION (II) OF SECTION ELEV-
EN HUNDRED FIFTEEN OF THIS CHAPTER, UNLESS SUCH COUNTY OR CITY ELECTS
OTHERWISE.
(i) Notwithstanding any other provision of law to the contrary but not
with respect to cities subject to the provisions of section eleven
hundred eight of this chapter, any city or county, except a county whol-
ly contained within a city, may provide that the tax imposed, pursuant
to this subdivision, by such city or county on the sale, other than for
resale, of propane (except when sold in containers of less than one
hundred pounds), natural gas, electricity, steam and gas, electric and
steam services of whatever nature used for residential purposes and on
the use of gas or electricity used for residential purposes may be
imposed at a lower rate than the uniform local rate imposed pursuant to
the opening paragraph of this section, as long as such rate is one of
the rates authorized by such paragraph or such sale or use may be
exempted from such taxes. Provided, however, such lower rate must apply
to all such energy sources and services and at the same rate and no such
exemption, OTHER THAN THE EXEMPTION PROVIDED FOR IN SUBDIVISION (EE) OF
SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER, IF SUCH EXEMPTION IS
ELECTED BY SUCH CITY OR COUNTY, may be enacted unless such exemption
applies to all such energy sources and services.
S 4-a. Subdivision (d) of section 1210 of the tax law, as amended by
section 37 of part S-1 of chapter 57 of the laws of 2009, is amended to
read as follows:
(d) A local law, ordinance or resolution imposing any tax pursuant to
this section, increasing or decreasing the rate of such tax, repealing
or suspending such tax, exempting from such tax the energy sources and
services described in paragraph three of subdivision (a) or of subdivi-
sion (b) of this section or changing the rate of tax imposed on such
energy sources and services or providing for the credit or refund
described in clause six of subdivision (a) of section eleven hundred
nineteen of this chapter, OR ELECTING OR REPEALING THE EXEMPTION FOR
RESIDENTIAL SOLAR EQUIPMENT AND ELECTRICITY IN SUBDIVISION (EE) OF
SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE, OR THE EXEMPTION FOR
COMMERCIAL SOLAR EQUIPMENT AND ELECTRICITY IN SUBDIVISION (II) OF
SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE must go into effect only
on one of the following dates: March first, June first, September first
or December first; provided, that a local law, ordinance or resolution
providing for the exemption described in paragraph thirty of subdivision
(a) of section eleven hundred fifteen of this chapter or repealing any
such exemption or a local law, ordinance or resolution providing for a
refund or credit described in subdivision (d) of section eleven hundred
nineteen of this chapter or repealing such provision so provided must go
into effect only on March first. No such local law, ordinance or resol-
ution shall be effective unless a certified copy of such law, ordinance
or resolution is mailed by registered or certified mail to the commis-
sioner at the commissioner's office in Albany at least ninety days prior
to the date it is to become effective. However, the commissioner may
waive and reduce such ninety-day minimum notice requirement to a mailing
of such certified copy by registered or certified mail within a period
of not less than thirty days prior to such effective date if the commis-
sioner deems such action to be consistent with the commissioner's duties
S. 4209 87
under section twelve hundred fifty of this article and the commissioner
acts by resolution. Where the restriction provided for in section twelve
hundred twenty-three of this article as to the effective date of a tax
and the notice requirement provided for therein are applicable and have
not been waived, the restriction and notice requirement in section
twelve hundred twenty-three of this article shall also apply.
S 5. Subdivisions (n) and (p) of section 1210 of the tax law are
REPEALED.
S 6. Subdivision (a) of section 1212 of the tax law, as amended by
section 40 of part S-1 of chapter 57 of the laws of 2009, is amended to
read as follows:
(a) Any school district which is coterminous with, partly within or
wholly within a city having a population of less than one hundred twen-
ty-five thousand, is hereby authorized and empowered, by majority vote
of the whole number of its school authorities, to impose for school
district purposes, within the territorial limits of such school district
and without discrimination between residents and nonresidents thereof,
the taxes described in subdivision (b) of section eleven hundred five
(but excluding the tax on prepaid telephone calling services) and the
taxes described in clauses (E) and (H) of subdivision (a) of section
eleven hundred ten, including the transitional provisions in subdivision
(b) of section eleven hundred six of this chapter, so far as such
provisions can be made applicable to the taxes imposed by such school
district and with such limitations and special provisions as are set
forth in this article, such taxes to be imposed at the rate of one-half,
one, one and one-half, two, two and one-half or three percent which rate
shall be uniform for all portions and all types of receipts and uses
subject to such taxes. In respect to such taxes, all provisions of the
resolution imposing them, except as to rate and except as otherwise
provided herein, shall be identical with the corresponding provisions in
such article twenty-eight of this chapter, including the applicable
definition and exemption provisions of such article, so far as the
provisions of such article twenty-eight of this chapter can be made
applicable to the taxes imposed by such school district and with such
limitations and special provisions as are set forth in this article. The
taxes described in subdivision (b) of section eleven hundred five (but
excluding the tax on prepaid telephone calling service) and clauses (E)
and (H) of subdivision (a) of section eleven hundred ten, including the
transitional provision in subdivision (b) of such section eleven hundred
six of this chapter, may not be imposed by such school district unless
the resolution imposes such taxes so as to include all portions and all
types of receipts and uses subject to tax under such subdivision (but
excluding the tax on prepaid telephone calling service) and clauses.
Provided, however, that, where a school district imposes such taxes,
such taxes shall omit the provision for refund or credit contained in
subdivision (d) of section eleven hundred nineteen of this chapter with
respect to such taxes described in such subdivision (b) of section elev-
en hundred five unless such school district elects to provide such
provision or, if so elected, to repeal such provision, AND SHALL OMIT
THE EXEMPTION PROVIDED IN PARAGRAPH TWO OF EITHER SUBDIVISION (EE) OR
SUBDIVISION (II) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER
UNLESS SUCH SCHOOL DISTRICT ELECTS OTHERWISE.
S 7. Section 1224 of the tax law is amended by adding a new subdivi-
sion (c-1) to read as follows:
(C-1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW: (1) WHERE A COUNTY
CONTAINING ONE OR MORE CITIES WITH A POPULATION OF LESS THAN ONE MILLION
S. 4209 88
HAS ELECTED THE EXEMPTION FOR RESIDENTIAL SOLAR ENERGY SYSTEMS EQUIPMENT
AND ELECTRICITY PROVIDED IN SUBDIVISION (EE) OF SECTION ELEVEN HUNDRED
FIFTEEN OF THIS CHAPTER, THE EXEMPTION FOR COMMERCIAL SOLAR ENERGY
SYSTEMS EQUIPMENT AND ELECTRICITY PROVIDED IN SUBDIVISION (II) OF SUCH
SECTION ELEVEN HUNDRED FIFTEEN, OR BOTH SUCH EXEMPTIONS, A CITY WITHIN
SUCH COUNTY SHALL HAVE THE PRIOR RIGHT TO IMPOSE TAX ON SUCH EXEMPT
EQUIPMENT AND/OR ELECTRICITY TO THE EXTENT OF ONE HALF OF THE MAXIMUM
RATES AUTHORIZED UNDER SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN OF
THIS ARTICLE;
(2) WHERE A CITY OF LESS THAN ONE MILLION HAS ELECTED THE EXEMPTION
FOR RESIDENTIAL SOLAR ENERGY SYSTEMS EQUIPMENT AND ELECTRICITY PROVIDED
IN SUBDIVISION (EE) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER,
THE EXEMPTION FOR COMMERCIAL SOLAR ENERGY SYSTEMS EQUIPMENT AND ELEC-
TRICITY PROVIDED IN SUBDIVISION (II) OF SUCH SECTION ELEVEN HUNDRED
FIFTEEN, OR BOTH SUCH EXEMPTIONS, THE COUNTY IN WHICH SUCH CITY IS
LOCATED SHALL HAVE THE PRIOR RIGHT TO IMPOSE TAX ON SUCH EXEMPT EQUIP-
MENT AND/OR ELECTRICITY TO THE EXTENT OF ONE HALF OF THE MAXIMUM RATES
AUTHORIZED UNDER SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN OF THIS
ARTICLE.
S 8. This act shall take effect December 1, 2015 and shall apply in
accordance with the applicable transitional provisions in sections 1106
and 1217 of the tax law.
PART AA
Section 1. Subdivision (f) of section 301-c of the tax law, as amended
by section 23 of part K of chapter 61 of the laws of 2011, is amended to
read as follows:
(f) Motor fuel AND HIGHWAY DIESEL MOTOR FUEL used for farm production.
No more than one thousand five hundred gallons of motor fuel AND NO MORE
THAN FOUR THOUSAND FIVE HUNDRED GALLONS OF HIGHWAY DIESEL MOTOR FUEL
purchased in this state in a thirty-day period or a greater amount which
has been given prior clearance by the commissioner, by a consumer for
use or consumption directly and exclusively in the production for sale
of tangible personal property by farming, but only if all of such MOTOR
fuel OR HIGHWAY DIESEL MOTOR FUEL is delivered on the farm site and is
consumed other than on the public highways of this state (except for the
use of the public highway to reach adjacent farmlands). This reimburse-
ment to such purchaser who used such motor fuel OR HIGHWAY DIESEL MOTOR
FUEL in the manner specified in this subdivision may be claimed only
where, (i) the tax imposed pursuant to this article has been paid with
respect to such motor fuel OR HIGHWAY DIESEL MOTOR FUEL and the entire
amount of such tax has been absorbed by such purchaser, and (ii) such
purchaser possesses documentary proof satisfactory to the commissioner
evidencing the absorption by it of the entire amount of the tax imposed
pursuant to this article. Provided, however, that the commissioner shall
require such documentary proof to qualify for any reimbursement of tax
provided by this subdivision as the commissioner deems appropriate. The
commissioner is hereby empowered to make such provisions as deemed
necessary to define the procedures for granting prior clearance for
purchases of more than one thousand five hundred gallons OF MOTOR FUEL
OR FOUR THOUSAND FIVE HUNDRED GALLONS OF HIGHWAY DIESEL MOTOR FUEL in a
thirty-day period.
S 2. This act shall take effect immediately.
PART BB
S. 4209 89
Section 1. Subsection (b) of section 952 of the tax law, as amended by
section 2 of part X of chapter 59 of the laws of 2014, is amended to
read as follows:
(b) Computation of tax. The tax imposed by this section shall be
computed on the deceased resident's New York taxable estate as follows:
[In the case of decedents dying on or after April 1, 2014 and before
April 1, 2015]
If the New York taxable estate is: The tax is:
Not over $500,000 3.06% of taxable estate
Over $500,000 but not over $1,000,000 $15,300 plus 5.0% of excess over
$500,000
Over $1,000,000 but not over $1,500,000 $40,300 plus 5.5% of excess over
$1,000,000
Over $1,500,000 but not over $2,100,000 $67,800 plus 6.5% of excess over
$1,500,000
Over $2,100,000 but not over $2,600,000 $106,800 plus 8.0% of excess
over $2,100,000
Over $2,600,000 but not over $3,100,000 $146,800 plus 8.8% of excess over
$2,600,000
Over $3,100,000 but not over $3,600,000 $190,800 plus 9.6% of excess over
$3,100,000
Over $3,600,000 but not over $4,100,000 $238,800 plus 10.4% of excess
over $3,600,000
Over $4,100,000 but not over $5,100,000 $290,800 plus 11.2% of excess
over $4,100,000
Over $5,100,000 but not over $6,100,000 $402,800 plus 12.0% of excess
over $5,100,000
Over $6,100,000 but not over $7,100,000 $522,800 plus 12.8% of excess
over $6,100,000
Over $7,100,000 but not over $8,100,000 $650,800 plus 13.6% of excess
over $7,100,000
Over $8,100,000 but not over $9,100,000 $786,800 plus 14.4% of excess
over $8,100,000
Over $9,100,000 but not over $930,800 plus 15.2% of excess over
$10,100,000 $9,100,000
Over $10,100,000 $1,082,800 plus 16.0% of excess
over $10,100,000
S 2. Paragraph 3 of subsection (a) of section 954 of the tax law, as
added by section 3 of part X of chapter 59 of the laws of 2014, is
amended to read as follows:
(3) Increased by the amount of any taxable gift under section 2503 of
the internal revenue code not otherwise included in the decedent's
federal gross estate, made during the three year period ending on the
decedent's date of death, but not including any gift made: [(1)] (A)
when the decedent was not a resident of New York state; [(2)] OR (B)
before April first, two thousand fourteen[; or (3)]. PROVIDED, HOWEVER
THAT THIS PARAGRAPH SHALL NOT APPLY TO THE ESTATE OF A DECEDENT DYING on
or after January first, two thousand nineteen.
S 3. Subsection (b) of section 960 of the tax law, as amended by
section 5 of part X of chapter 59 of the laws of 2014, is amended to
read as follows:
(b) Computation of tax.--The tax imposed under subsection (a) shall be
the same as the tax that would be due, if the decedent had died a resi-
dent, under subsection (a) of section nine hundred fifty-two, except
that for purposes of computing the tax under subsection (b) of section
nine hundred fifty-two, "New York taxable estate" shall not include the
S. 4209 90
value of, OR ANY DEDUCTION ALLOWABLE UNDER THE INTERNAL REVENUE CODE
RELATED TO, any intangible personal property otherwise includible in the
deceased individual's New York gross estate, and shall not include the
amount of any gift unless such gift consists of real or tangible
personal property having an actual situs in New York state or intangible
personal property employed in a business, trade or profession carried on
in this state.
S 4. Paragraph 1 of subsection (c) of section 952 of the tax law, as
added by section 2 of part X of chapter 59 of the laws of 2014, is
amended to read as follows:
(1) A credit of the applicable credit amount shall be allowed against
the tax imposed by this section as provided in this subsection. In the
case of a decedent whose New York taxable estate is less than or equal
to the basic exclusion amount, the applicable credit amount shall be the
amount of tax that would be due under subsection (b) of this section on
such decedent's New York taxable estate. In the case of a decedent whose
New York taxable estate exceeds the basic exclusion amount by an amount
that is less than or equal to [five] TEN percent of such amount, the
applicable credit amount shall be the amount of tax that would be due
under subsection (b) of this section if the amount on which the tax is
to be computed were equal to the basic exclusion amount multiplied by
one minus a fraction, the numerator of which is the decedent's New York
taxable estate minus the basic exclusion amount, and the denominator of
which is [five] TEN percent of the basic exclusion amount. Provided,
however, that the credit allowed by this subsection shall not exceed the
tax imposed by this section, and no credit shall be allowed to the
estate of any decedent whose New York taxable estate exceeds one hundred
[five] TEN percent of the basic exclusion amount.
S 5. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2014; provided
that section four of this act shall take effect April 1, 2015 and shall
apply to estates of decedents dying on and after that date.
PART CC
Intentionally Omitted
PART DD
Section 1. Section 2 of part Q of chapter 59 of the laws of 2013,
amending the tax law relating to serving an income execution with
respect to individual tax debtors without filing a warrant, is amended
to read as follows:
S 2. This act shall take effect immediately and shall expire and be
deemed repealed on and after April 1, [2015] 2016.
S 2. This act shall take effect immediately.
PART EE
Intentionally Omitted
PART FF
S. 4209 91
Section 1. Paragraph (a) of subdivision 1 of section 18 of chapter 266
of the laws of 1986, amending the civil practice law and rules and other
laws relating to malpractice and professional medical conduct, as
amended by section 18 of part B of chapter 60 of the laws of 2014, is
amended to read as follows:
(a) The superintendent of [insurance] FINANCIAL SERVICES and the
commissioner of health or their designee shall, from funds available in
the hospital excess liability pool created pursuant to subdivision 5 of
this section, purchase a policy or policies for excess insurance cover-
age, as authorized by paragraph 1 of subsection (e) of section 5502 of
the insurance law; or from an insurer, other than an insurer described
in section 5502 of the insurance law, duly authorized to write such
coverage and actually writing medical malpractice insurance in this
state; or shall purchase equivalent excess coverage in a form previously
approved by the superintendent of [insurance] FINANCIAL SERVICES for
purposes of providing equivalent excess coverage in accordance with
section 19 of chapter 294 of the laws of 1985, for medical or dental
malpractice occurrences between July 1, 1986 and June 30, 1987, between
July 1, 1987 and June 30, 1988, between July 1, 1988 and June 30, 1989,
between July 1, 1989 and June 30, 1990, between July 1, 1990 and June
30, 1991, between July 1, 1991 and June 30, 1992, between July 1, 1992
and June 30, 1993, between July 1, 1993 and June 30, 1994, between July
1, 1994 and June 30, 1995, between July 1, 1995 and June 30, 1996,
between July 1, 1996 and June 30, 1997, between July 1, 1997 and June
30, 1998, between July 1, 1998 and June 30, 1999, between July 1, 1999
and June 30, 2000, between July 1, 2000 and June 30, 2001, between July
1, 2001 and June 30, 2002, between July 1, 2002 and June 30, 2003,
between July 1, 2003 and June 30, 2004, between July 1, 2004 and June
30, 2005, between July 1, 2005 and June 30, 2006, between July 1, 2006
and June 30, 2007, between July 1, 2007 and June 30, 2008, between July
1, 2008 and June 30, 2009, between July 1, 2009 and June 30, 2010,
between July 1, 2010 and June 30, 2011, between July 1, 2011 and June
30, 2012, between July 1, 2012 and June 30, 2013, between July 1, 2013
and June 30, 2014, [and] between July 1, 2014 and June 30, 2015, AND
BETWEEN JULY 1, 2015 AND JUNE 30, 2016 or reimburse the hospital where
the hospital purchases equivalent excess coverage as defined in subpara-
graph (i) of paragraph (a) of subdivision 1-a of this section for
medical or dental malpractice occurrences between July 1, 1987 and June
30, 1988, between July 1, 1988 and June 30, 1989, between July 1, 1989
and June 30, 1990, between July 1, 1990 and June 30, 1991, between July
1, 1991 and June 30, 1992, between July 1, 1992 and June 30, 1993,
between July 1, 1993 and June 30, 1994, between July 1, 1994 and June
30, 1995, between July 1, 1995 and June 30, 1996, between July 1, 1996
and June 30, 1997, between July 1, 1997 and June 30, 1998, between July
1, 1998 and June 30, 1999, between July 1, 1999 and June 30, 2000,
between July 1, 2000 and June 30, 2001, between July 1, 2001 and June
30, 2002, between July 1, 2002 and June 30, 2003, between July 1, 2003
and June 30, 2004, between July 1, 2004 and June 30, 2005, between July
1, 2005 and June 30, 2006, between July 1, 2006 and June 30, 2007,
between July 1, 2007 and June 30, 2008, between July 1, 2008 and June
30, 2009, between July 1, 2009 and June 30, 2010, between July 1, 2010
and June 30, 2011, between July 1, 2011 and June 30, 2012, between July
1, 2012 and June 30, 2013, between July 1, 2013 and June 30, 2014, [and]
between July 1, 2014 and June 30, 2015, AND BETWEEN JULY 1, 2015 AND
JUNE 30, 2016 for physicians or dentists certified as eligible for each
such period or periods pursuant to subdivision 2 of this section by a
S. 4209 92
general hospital licensed pursuant to article 28 of the public health
law; provided that no single insurer shall write more than fifty percent
of the total excess premium for a given policy year; and provided,
however, that such eligible physicians or dentists must have in force an
individual policy, from an insurer licensed in this state of primary
malpractice insurance coverage in amounts of no less than one million
three hundred thousand dollars for each claimant and three million nine
hundred thousand dollars for all claimants under that policy during the
period of such excess coverage for such occurrences or be endorsed as
additional insureds under a hospital professional liability policy which
is offered through a voluntary attending physician ("channeling")
program previously permitted by the superintendent of [insurance] FINAN-
CIAL SERVICES during the period of such excess coverage for such occur-
rences. During such period, such policy for excess coverage or such
equivalent excess coverage shall, when combined with the physician's or
dentist's primary malpractice insurance coverage or coverage provided
through a voluntary attending physician ("channeling") program, total an
aggregate level of two million three hundred thousand dollars for each
claimant and six million nine hundred thousand dollars for all claimants
from all such policies with respect to occurrences in each of such years
provided, however, if the cost of primary malpractice insurance coverage
in excess of one million dollars, but below the excess medical malprac-
tice insurance coverage provided pursuant to this act, exceeds the rate
of nine percent per annum, then the required level of primary malprac-
tice insurance coverage in excess of one million dollars for each claim-
ant shall be in an amount of not less than the dollar amount of such
coverage available at nine percent per annum; the required level of such
coverage for all claimants under that policy shall be in an amount not
less than three times the dollar amount of coverage for each claimant;
and excess coverage, when combined with such primary malpractice insur-
ance coverage, shall increase the aggregate level for each claimant by
one million dollars and three million dollars for all claimants; and
provided further, that, with respect to policies of primary medical
malpractice coverage that include occurrences between April 1, 2002 and
June 30, 2002, such requirement that coverage be in amounts no less than
one million three hundred thousand dollars for each claimant and three
million nine hundred thousand dollars for all claimants for such occur-
rences shall be effective April 1, 2002.
S 2. Subdivision 3 of section 18 of chapter 266 of the laws of 1986,
amending the civil practice law and rules and other laws relating to
malpractice and professional medical conduct, as amended by section 19
of part B of chapter 60 of the laws of 2014, is amended to read as
follows:
(3)(a) The superintendent of [insurance] FINANCIAL SERVICES shall
determine and certify to each general hospital and to the commissioner
of health the cost of excess malpractice insurance for medical or dental
malpractice occurrences between July 1, 1986 and June 30, 1987, between
July 1, 1988 and June 30, 1989, between July 1, 1989 and June 30, 1990,
between July 1, 1990 and June 30, 1991, between July 1, 1991 and June
30, 1992, between July 1, 1992 and June 30, 1993, between July 1, 1993
and June 30, 1994, between July 1, 1994 and June 30, 1995, between July
1, 1995 and June 30, 1996, between July 1, 1996 and June 30, 1997,
between July 1, 1997 and June 30, 1998, between July 1, 1998 and June
30, 1999, between July 1, 1999 and June 30, 2000, between July 1, 2000
and June 30, 2001, between July 1, 2001 and June 30, 2002, between July
1, 2002 and June 30, 2003, between July 1, 2003 and June 30, 2004,
S. 4209 93
between July 1, 2004 and June 30, 2005, between July 1, 2005 and June
30, 2006, between July 1, 2006 and June 30, 2007, between July 1, 2007
and June 30, 2008, between July 1, 2008 and June 30, 2009, between July
1, 2009 and June 30, 2010, between July 1, 2010 and June 30, 2011,
between July 1, 2011 and June 30, 2012, between July 1, 2012 and June
30, 2013, and between July 1, 2013 and June 30, 2014, [and] between July
1, 2014 and June 30, 2015, AND BETWEEN JULY 1, 2015 AND JUNE 30, 2016
allocable to each general hospital for physicians or dentists certified
as eligible for purchase of a policy for excess insurance coverage by
such general hospital in accordance with subdivision 2 of this section,
and may amend such determination and certification as necessary.
(b) The superintendent of [insurance] FINANCIAL SERVICES shall deter-
mine and certify to each general hospital and to the commissioner of
health the cost of excess malpractice insurance or equivalent excess
coverage for medical or dental malpractice occurrences between July 1,
1987 and June 30, 1988, between July 1, 1988 and June 30, 1989, between
July 1, 1989 and June 30, 1990, between July 1, 1990 and June 30, 1991,
between July 1, 1991 and June 30, 1992, between July 1, 1992 and June
30, 1993, between July 1, 1993 and June 30, 1994, between July 1, 1994
and June 30, 1995, between July 1, 1995 and June 30, 1996, between July
1, 1996 and June 30, 1997, between July 1, 1997 and June 30, 1998,
between July 1, 1998 and June 30, 1999, between July 1, 1999 and June
30, 2000, between July 1, 2000 and June 30, 2001, between July 1, 2001
and June 30, 2002, between July 1, 2002 and June 30, 2003, between July
1, 2003 and June 30, 2004, between July 1, 2004 and June 30, 2005,
between July 1, 2005 and June 30, 2006, between July 1, 2006 and June
30, 2007, between July 1, 2007 and June 30, 2008, between July 1, 2008
and June 30, 2009, between July 1, 2009 and June 30, 2010, between July
1, 2010 and June 30, 2011, between July 1, 2011 and June 30, 2012,
between July 1, 2012 and June 30, 2013, between July 1, 2013 and June
30, 2014, [and] between July 1, 2014 and June 30, 2015, AND BETWEEN JULY
1, 2015 AND JUNE 30, 2016 allocable to each general hospital for physi-
cians or dentists certified as eligible for purchase of a policy for
excess insurance coverage or equivalent excess coverage by such general
hospital in accordance with subdivision 2 of this section, and may amend
such determination and certification as necessary. The superintendent of
[insurance] FINANCIAL SERVICES shall determine and certify to each
general hospital and to the commissioner of health the ratable share of
such cost allocable to the period July 1, 1987 to December 31, 1987, to
the period January 1, 1988 to June 30, 1988, to the period July 1, 1988
to December 31, 1988, to the period January 1, 1989 to June 30, 1989, to
the period July 1, 1989 to December 31, 1989, to the period January 1,
1990 to June 30, 1990, to the period July 1, 1990 to December 31, 1990,
to the period January 1, 1991 to June 30, 1991, to the period July 1,
1991 to December 31, 1991, to the period January 1, 1992 to June 30,
1992, to the period July 1, 1992 to December 31, 1992, to the period
January 1, 1993 to June 30, 1993, to the period July 1, 1993 to December
31, 1993, to the period January 1, 1994 to June 30, 1994, to the period
July 1, 1994 to December 31, 1994, to the period January 1, 1995 to June
30, 1995, to the period July 1, 1995 to December 31, 1995, to the period
January 1, 1996 to June 30, 1996, to the period July 1, 1996 to December
31, 1996, to the period January 1, 1997 to June 30, 1997, to the period
July 1, 1997 to December 31, 1997, to the period January 1, 1998 to June
30, 1998, to the period July 1, 1998 to December 31, 1998, to the period
January 1, 1999 to June 30, 1999, to the period July 1, 1999 to December
31, 1999, to the period January 1, 2000 to June 30, 2000, to the period
S. 4209 94
July 1, 2000 to December 31, 2000, to the period January 1, 2001 to June
30, 2001, to the period July 1, 2001 to June 30, 2002, to the period
July 1, 2002 to June 30, 2003, to the period July 1, 2003 to June 30,
2004, to the period July 1, 2004 to June 30, 2005, to the period July 1,
2005 and June 30, 2006, to the period July 1, 2006 and June 30, 2007, to
the period July 1, 2007 and June 30, 2008, to the period July 1, 2008
and June 30, 2009, to the period July 1, 2009 and June 30, 2010, to the
period July 1, 2010 and June 30, 2011, to the period July 1, 2011 and
June 30, 2012, to the period July 1, 2012 and June 30, 2013, to the
period July 1, 2013 and June 30, 2014, [and] to the period July 1, 2014
and June 30, 2015, AND TO THE PERIOD JULY 1, 2015 AND JUNE 30, 2016.
S 3. Paragraphs (a), (b), (c), (d) and (e) of subdivision 8 of section
18 of chapter 266 of the laws of 1986, amending the civil practice law
and rules and other laws relating to malpractice and professional
medical conduct, as amended by section 20 of part B of chapter 60 of the
laws of 2014, are amended to read as follows:
(a) To the extent funds available to the hospital excess liability
pool pursuant to subdivision 5 of this section as amended, and pursuant
to section 6 of part J of chapter 63 of the laws of 2001, as may from
time to time be amended, which amended this subdivision, are insuffi-
cient to meet the costs of excess insurance coverage or equivalent
excess coverage for coverage periods during the period July 1, 1992 to
June 30, 1993, during the period July 1, 1993 to June 30, 1994, during
the period July 1, 1994 to June 30, 1995, during the period July 1, 1995
to June 30, 1996, during the period July 1, 1996 to June 30, 1997,
during the period July 1, 1997 to June 30, 1998, during the period July
1, 1998 to June 30, 1999, during the period July 1, 1999 to June 30,
2000, during the period July 1, 2000 to June 30, 2001, during the period
July 1, 2001 to October 29, 2001, during the period April 1, 2002 to
June 30, 2002, during the period July 1, 2002 to June 30, 2003, during
the period July 1, 2003 to June 30, 2004, during the period July 1, 2004
to June 30, 2005, during the period July 1, 2005 to June 30, 2006,
during the period July 1, 2006 to June 30, 2007, during the period July
1, 2007 to June 30, 2008, during the period July 1, 2008 to June 30,
2009, during the period July 1, 2009 to June 30, 2010, during the period
July 1, 2010 to June 30, 2011, during the period July 1, 2011 to June
30, 2012, during the period July 1, 2012 to June 30, 2013, during the
period July 1, 2013 to June 30, 2014, [and] during the period July 1,
2014 to June 30, 2015, AND DURING THE PERIOD JULY 1, 2015 AND JUNE 30,
2016 allocated or reallocated in accordance with paragraph (a) of subdi-
vision 4-a of this section to rates of payment applicable to state
governmental agencies, each physician or dentist for whom a policy for
excess insurance coverage or equivalent excess coverage is purchased for
such period shall be responsible for payment to the provider of excess
insurance coverage or equivalent excess coverage of an allocable share
of such insufficiency, based on the ratio of the total cost of such
coverage for such physician to the sum of the total cost of such cover-
age for all physicians applied to such insufficiency.
(b) Each provider of excess insurance coverage or equivalent excess
coverage covering the period July 1, 1992 to June 30, 1993, or covering
the period July 1, 1993 to June 30, 1994, or covering the period July 1,
1994 to June 30, 1995, or covering the period July 1, 1995 to June 30,
1996, or covering the period July 1, 1996 to June 30, 1997, or covering
the period July 1, 1997 to June 30, 1998, or covering the period July 1,
1998 to June 30, 1999, or covering the period July 1, 1999 to June 30,
2000, or covering the period July 1, 2000 to June 30, 2001, or covering
S. 4209 95
the period July 1, 2001 to October 29, 2001, or covering the period
April 1, 2002 to June 30, 2002, or covering the period July 1, 2002 to
June 30, 2003, or covering the period July 1, 2003 to June 30, 2004, or
covering the period July 1, 2004 to June 30, 2005, or covering the peri-
od July 1, 2005 to June 30, 2006, or covering the period July 1, 2006 to
June 30, 2007, or covering the period July 1, 2007 to June 30, 2008, or
covering the period July 1, 2008 to June 30, 2009, or covering the peri-
od July 1, 2009 to June 30, 2010, or covering the period July 1, 2010 to
June 30, 2011, or covering the period July 1, 2011 to June 30, 2012, or
covering the period July 1, 2012 to June 30, 2013, or covering the peri-
od July 1, 2013 to June 30, 2014, or covering the period July 1, 2014 to
June 30, 2015, OR COVERING THE PERIOD JULY 1, 2015 TO JUNE 30, 2016
shall notify a covered physician or dentist by mail, mailed to the
address shown on the last application for excess insurance coverage or
equivalent excess coverage, of the amount due to such provider from such
physician or dentist for such coverage period determined in accordance
with paragraph (a) of this subdivision. Such amount shall be due from
such physician or dentist to such provider of excess insurance coverage
or equivalent excess coverage in a time and manner determined by the
superintendent of [insurance] FINANCIAL SERVICES.
(c) If a physician or dentist liable for payment of a portion of the
costs of excess insurance coverage or equivalent excess coverage cover-
ing the period July 1, 1992 to June 30, 1993, or covering the period
July 1, 1993 to June 30, 1994, or covering the period July 1, 1994 to
June 30, 1995, or covering the period July 1, 1995 to June 30, 1996, or
covering the period July 1, 1996 to June 30, 1997, or covering the peri-
od July 1, 1997 to June 30, 1998, or covering the period July 1, 1998 to
June 30, 1999, or covering the period July 1, 1999 to June 30, 2000, or
covering the period July 1, 2000 to June 30, 2001, or covering the peri-
od July 1, 2001 to October 29, 2001, or covering the period April 1,
2002 to June 30, 2002, or covering the period July 1, 2002 to June 30,
2003, or covering the period July 1, 2003 to June 30, 2004, or covering
the period July 1, 2004 to June 30, 2005, or covering the period July 1,
2005 to June 30, 2006, or covering the period July 1, 2006 to June 30,
2007, or covering the period July 1, 2007 to June 30, 2008, or covering
the period July 1, 2008 to June 30, 2009, or covering the period July 1,
2009 to June 30, 2010, or covering the period July 1, 2010 to June 30,
2011, or covering the period July 1, 2011 to June 30, 2012, or covering
the period July 1, 2012 to June 30, 2013, or covering the period July 1,
2013 to June 30, 2014, or covering the period July 1, 2014 to June 30,
2015, OR COVERING THE PERIOD JULY 1, 2015 TO JUNE 30, 2016 determined in
accordance with paragraph (a) of this subdivision fails, refuses or
neglects to make payment to the provider of excess insurance coverage or
equivalent excess coverage in such time and manner as determined by the
superintendent of [insurance] FINANCIAL SERVICES pursuant to paragraph
(b) of this subdivision, excess insurance coverage or equivalent excess
coverage purchased for such physician or dentist in accordance with this
section for such coverage period shall be cancelled and shall be null
and void as of the first day on or after the commencement of a policy
period where the liability for payment pursuant to this subdivision has
not been met.
(d) Each provider of excess insurance coverage or equivalent excess
coverage shall notify the superintendent of [insurance] FINANCIAL
SERVICES and the commissioner of health or their designee of each physi-
cian and dentist eligible for purchase of a policy for excess insurance
coverage or equivalent excess coverage covering the period July 1, 1992
S. 4209 96
to June 30, 1993, or covering the period July 1, 1993 to June 30, 1994,
or covering the period July 1, 1994 to June 30, 1995, or covering the
period July 1, 1995 to June 30, 1996, or covering the period July 1,
1996 to June 30, 1997, or covering the period July 1, 1997 to June 30,
1998, or covering the period July 1, 1998 to June 30, 1999, or covering
the period July 1, 1999 to June 30, 2000, or covering the period July 1,
2000 to June 30, 2001, or covering the period July 1, 2001 to October
29, 2001, or covering the period April 1, 2002 to June 30, 2002, or
covering the period July 1, 2002 to June 30, 2003, or covering the peri-
od July 1, 2003 to June 30, 2004, or covering the period July 1, 2004 to
June 30, 2005, or covering the period July 1, 2005 to June 30, 2006, or
covering the period July 1, 2006 to June 30, 2007, or covering the peri-
od July 1, 2007 to June 30, 2008, or covering the period July 1, 2008 to
June 30, 2009, or covering the period July 1, 2009 to June 30, 2010, or
covering the period July 1, 2010 to June 30, 2011, or covering the peri-
od July 1, 2011 to June 30, 2012, or covering the period July 1, 2012 to
June 30, 2013, or covering the period July 1, 2013 to June 30, 2014, or
covering the period July 1, 2014 to June 30, 2015, OR COVERING THE PERI-
OD JULY 1, 2015 TO JUNE 30, 2016 that has made payment to such provider
of excess insurance coverage or equivalent excess coverage in accordance
with paragraph (b) of this subdivision and of each physician and dentist
who has failed, refused or neglected to make such payment.
(e) A provider of excess insurance coverage or equivalent excess
coverage shall refund to the hospital excess liability pool any amount
allocable to the period July 1, 1992 to June 30, 1993, and to the period
July 1, 1993 to June 30, 1994, and to the period July 1, 1994 to June
30, 1995, and to the period July 1, 1995 to June 30, 1996, and to the
period July 1, 1996 to June 30, 1997, and to the period July 1, 1997 to
June 30, 1998, and to the period July 1, 1998 to June 30, 1999, and to
the period July 1, 1999 to June 30, 2000, and to the period July 1, 2000
to June 30, 2001, and to the period July 1, 2001 to October 29, 2001,
and to the period April 1, 2002 to June 30, 2002, and to the period July
1, 2002 to June 30, 2003, and to the period July 1, 2003 to June 30,
2004, and to the period July 1, 2004 to June 30, 2005, and to the period
July 1, 2005 to June 30, 2006, and to the period July 1, 2006 to June
30, 2007, and to the period July 1, 2007 to June 30, 2008, and to the
period July 1, 2008 to June 30, 2009, and to the period July 1, 2009 to
June 30, 2010, and to the period July 1, 2010 to June 30, 2011, and to
the period July 1, 2011 to June 30, 2012, and to the period July 1, 2012
to June 30, 2013, and to the period July 1, 2013 to June 30, 2014, and
to the period July 1, 2014 to June 30, 2015, AND TO THE PERIOD JULY 1,
2015 TO JUNE 30, 2016 received from the hospital excess liability pool
for purchase of excess insurance coverage or equivalent excess coverage
covering the period July 1, 1992 to June 30, 1993, and covering the
period July 1, 1993 to June 30, 1994, and covering the period July 1,
1994 to June 30, 1995, and covering the period July 1, 1995 to June 30,
1996, and covering the period July 1, 1996 to June 30, 1997, and cover-
ing the period July 1, 1997 to June 30, 1998, and covering the period
July 1, 1998 to June 30, 1999, and covering the period July 1, 1999 to
June 30, 2000, and covering the period July 1, 2000 to June 30, 2001,
and covering the period July 1, 2001 to October 29, 2001, and covering
the period April 1, 2002 to June 30, 2002, and covering the period July
1, 2002 to June 30, 2003, and covering the period July 1, 2003 to June
30, 2004, and covering the period July 1, 2004 to June 30, 2005, and
covering the period July 1, 2005 to June 30, 2006, and covering the
period July 1, 2006 to June 30, 2007, and covering the period July 1,
S. 4209 97
2007 to June 30, 2008, and covering the period July 1, 2008 to June 30,
2009, and covering the period July 1, 2009 to June 30, 2010, and cover-
ing the period July 1, 2010 to June 30, 2011, and covering the period
July 1, 2011 to June 30, 2012, and covering the period July 1, 2012 to
June 30, 2013, and covering the period July 1, 2013 to June 30, 2014,
and covering the period July 1, 2014 to June 30, 2015, AND COVERING THE
PERIOD JULY 1, 2015 TO JUNE 30, 2016 for a physician or dentist where
such excess insurance coverage or equivalent excess coverage is
cancelled in accordance with paragraph (c) of this subdivision.
S 4. Section 40 of chapter 266 of the laws of 1986, amending the civil
practice law and rules and other laws relating to malpractice and
professional medical conduct, as amended by section 21 of part B of
chapter 60 of the laws of 2014, is amended to read as follows:
S 40. The superintendent of [insurance] FINANCIAL SERVICES shall
establish rates for policies providing coverage for physicians and
surgeons medical malpractice for the periods commencing July 1, 1985 and
ending June 30, [2015] 2016; provided, however, that notwithstanding any
other provision of law, the superintendent shall not establish or
approve any increase in rates for the period commencing July 1, 2009 and
ending June 30, 2010. The superintendent shall direct insurers to estab-
lish segregated accounts for premiums, payments, reserves and investment
income attributable to such premium periods and shall require periodic
reports by the insurers regarding claims and expenses attributable to
such periods to monitor whether such accounts will be sufficient to meet
incurred claims and expenses. On or after July 1, 1989, the superinten-
dent shall impose a surcharge on premiums to satisfy a projected defi-
ciency that is attributable to the premium levels established pursuant
to this section for such periods; provided, however, that such annual
surcharge shall not exceed eight percent of the established rate until
July 1, [2015] 2016, at which time and thereafter such surcharge shall
not exceed twenty-five percent of the approved adequate rate, and that
such annual surcharges shall continue for such period of time as shall
be sufficient to satisfy such deficiency. The superintendent shall not
impose such surcharge during the period commencing July 1, 2009 and
ending June 30, 2010. On and after July 1, 1989, the surcharge
prescribed by this section shall be retained by insurers to the extent
that they insured physicians and surgeons during the July 1, 1985
through June 30, [2015] 2016 policy periods; in the event and to the
extent physicians and surgeons were insured by another insurer during
such periods, all or a pro rata share of the surcharge, as the case may
be, shall be remitted to such other insurer in accordance with rules and
regulations to be promulgated by the superintendent. Surcharges
collected from physicians and surgeons who were not insured during such
policy periods shall be apportioned among all insurers in proportion to
the premium written by each insurer during such policy periods; if a
physician or surgeon was insured by an insurer subject to rates estab-
lished by the superintendent during such policy periods, and at any time
thereafter a hospital, health maintenance organization, employer or
institution is responsible for responding in damages for liability aris-
ing out of such physician's or surgeon's practice of medicine, such
responsible entity shall also remit to such prior insurer the equivalent
amount that would then be collected as a surcharge if the physician or
surgeon had continued to remain insured by such prior insurer. In the
event any insurer that provided coverage during such policy periods is
in liquidation, the property/casualty insurance security fund shall
receive the portion of surcharges to which the insurer in liquidation
S. 4209 98
would have been entitled. The surcharges authorized herein shall be
deemed to be income earned for the purposes of section 2303 of the
insurance law. The superintendent, in establishing adequate rates and
in determining any projected deficiency pursuant to the requirements of
this section and the insurance law, shall give substantial weight,
determined in his discretion and judgment, to the prospective antic-
ipated effect of any regulations promulgated and laws enacted and the
public benefit of stabilizing malpractice rates and minimizing rate
level fluctuation during the period of time necessary for the develop-
ment of more reliable statistical experience as to the efficacy of such
laws and regulations affecting medical, dental or podiatric malpractice
enacted or promulgated in 1985, 1986, by this act and at any other time.
Notwithstanding any provision of the insurance law, rates already estab-
lished and to be established by the superintendent pursuant to this
section are deemed adequate if such rates would be adequate when taken
together with the maximum authorized annual surcharges to be imposed for
a reasonable period of time whether or not any such annual surcharge has
been actually imposed as of the establishment of such rates.
S 5. Section 5 and subdivisions (a) and (e) of section 6 of part J of
chapter 63 of the laws of 2001, amending chapter 20 of the laws of 2001
amending the military law and other laws relating to making appropri-
ations for the support of government, as amended by section 22 of part B
of chapter 60 of the laws of 2014, are amended to read as follows:
S 5. The superintendent of [insurance] FINANCIAL SERVICES and the
commissioner of health shall determine, no later than June 15, 2002,
June 15, 2003, June 15, 2004, June 15, 2005, June 15, 2006, June 15,
2007, June 15, 2008, June 15, 2009, June 15, 2010, June 15, 2011, June
15, 2012, June 15, 2013, June 15, 2014, [and] June 15, 2015, AND JUNE
15, 2016 the amount of funds available in the hospital excess liability
pool, created pursuant to section 18 of chapter 266 of the laws of 1986,
and whether such funds are sufficient for purposes of purchasing excess
insurance coverage for eligible participating physicians and dentists
during the period July 1, 2001 to June 30, 2002, or July 1, 2002 to June
30, 2003, or July 1, 2003 to June 30, 2004, or July 1, 2004 to June 30,
2005, or July 1, 2005 to June 30, 2006, or July 1, 2006 to June 30,
2007, or July 1, 2007 to June 30, 2008, or July 1, 2008 to June 30,
2009, or July 1, 2009 to June 30, 2010, or July 1, 2010 to June 30,
2011, or July 1, 2011 to June 30, 2012, or July 1, 2012 to June 30,
2013, or July 1, 2013 to June 30, 2014, or July 1, 2014 to June 30,
2015, OR JULY 1, 2015 TO JUNE 30, 2016, as applicable.
(a) This section shall be effective only upon a determination, pursu-
ant to section five of this act, by the superintendent of [insurance]
FINANCIAL SERVICES and the commissioner of health, and a certification
of such determination to the state director of the budget, the chair of
the senate committee on finance and the chair of the assembly committee
on ways and means, that the amount of funds in the hospital excess
liability pool, created pursuant to section 18 of chapter 266 of the
laws of 1986, is insufficient for purposes of purchasing excess insur-
ance coverage for eligible participating physicians and dentists during
the period July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30,
2003, or July 1, 2003 to June 30, 2004, or July 1, 2004 to June 30,
2005, or July 1, 2005 to June 30, 2006, or July 1, 2006 to June 30,
2007, or July 1, 2007 to June 30, 2008, or July 1, 2008 to June 30,
2009, or July 1, 2009 to June 30, 2010, or July 1, 2010 to June 30,
2011, or July 1, 2011 to June 30, 2012, or July 1, 2012 to June 30,
S. 4209 99
2013, or July 1, 2013 to June 30, 2014, or July 1, 2014 to June 30,
2015, OR JULY 1, 2015 TO JUNE 30, 2016, as applicable.
(e) The commissioner of health shall transfer for deposit to the
hospital excess liability pool created pursuant to section 18 of chapter
266 of the laws of 1986 such amounts as directed by the superintendent
of [insurance] FINANCIAL SERVICES for the purchase of excess liability
insurance coverage for eligible participating physicians and dentists
for the policy year July 1, 2001 to June 30, 2002, or July 1, 2002 to
June 30, 2003, or July 1, 2003 to June 30, 2004, or July 1, 2004 to June
30, 2005, or July 1, 2005 to June 30, 2006, or July 1, 2006 to June 30,
2007, as applicable, and the cost of administering the hospital excess
liability pool for such applicable policy year, pursuant to the program
established in chapter 266 of the laws of 1986, as amended, no later
than June 15, 2002, June 15, 2003, June 15, 2004, June 15, 2005, June
15, 2006, June 15, 2007, June 15, 2008, June 15, 2009, June 15, 2010,
June 15, 2011, June 15, 2012, June 15, 2013, June 15, 2014, [and] June
15, 2015, AND JUNE 15, 2016, as applicable.
S 6. Notwithstanding any law, rule or regulation to the contrary, only
physicians or dentists who were eligible, and for whom the superinten-
dent of financial services and the commissioner of health, or their
designee, purchased, with funds available in the hospital excess liabil-
ity pool, a full or partial policy for excess coverage or equivalent
excess coverage for the coverage period ending the thirtieth of June,
two thousand fifteen, shall be eligible to apply for such coverage for
the coverage period beginning the first of July, two thousand fifteen;
provided, however, if the total number of physicians or dentists for
whom such excess coverage or equivalent excess coverage was purchased
for the policy year ending the thirtieth of June, two thousand fifteen
exceeds the total number of physicians or dentists certified as eligible
for the coverage period beginning the first of July, two thousand
fifteen, then the general hospitals may certify additional eligible
physicians or dentists in a number equal to such general hospital's
proportional share of the total number of physicians or dentists for
whom excess coverage or equivalent excess coverage was purchased with
funds available in the hospital excess liability pool as of the thirti-
eth of June, two thousand fifteen, as applied to the difference between
the number of eligible physicians or dentists for whom a policy for
excess coverage or equivalent excess coverage was purchased for the
coverage period ending the thirtieth of June, two thousand fifteen and
the number of such eligible physicians or dentists who have applied for
excess coverage or equivalent excess for the coverage period beginning
the first of July, two thousand fifteen.
S 7. Intentionally omitted.
S 8. This act shall take effect immediately.
PART GG
Section 1. The public authorities law is amended by adding a new
section 2858 to read as follows:
S 2858. CLEARANCE OF PAST-DUE TAX LIABILITIES FOR STATE OR LOCAL
AUTHORITY GRANT APPLICANTS. 1. AS USED IN THIS SECTION:
A. "APPLICANT" MEANS ANY APPLICANT, AGENT OR AFFILIATED PERSON OF
EITHER OF THEM THAT MAKES AN APPLICATION FOR A GRANT.
B. "GRANT" MEANS ANY STATE MONIES AWARDED BY A STATE OR LOCAL AUTHORI-
TY TO AN APPLICANT FOR ANY STATE OR LOCAL PUBLIC PURPOSE.
S. 4209 100
C. "LOCAL AUTHORITY" MEANS (I) A PUBLIC AUTHORITY OR PUBLIC BENEFIT
CORPORATION CREATED BY OR EXISTING UNDER THIS CHAPTER OR ANY OTHER LAW
OF THE STATE OF NEW YORK THAT HAS THE POWER TO MAKE GRANTS OR LOAN FUNDS
OF STATE MONIES AND WHOSE MEMBERS DO NOT HOLD A CIVIL OFFICE OF THE
STATE, AND WHOSE MEMBERS EITHER ARE NOT APPOINTED BY THE GOVERNOR OR ARE
APPOINTED BY THE GOVERNOR SPECIFICALLY UPON THE RECOMMENDATION OF THE
LOCAL GOVERNMENT OR GOVERNMENTS; (II) A NOT-FOR-PROFIT CORPORATION
AFFILIATED WITH, SPONSORED BY, OR CREATED BY A COUNTY, CITY, TOWN OR
VILLAGE GOVERNMENT; (III) A LAND BANK CORPORATION CREATED PURSUANT TO
ARTICLE SIXTEEN OF THE NOT-FOR-PROFIT CORPORATION LAW, INCLUDING SUBSID-
IARIES AND AFFILIATES OF SUCH LOCAL AUTHORITY; OR (IV) HOUSING AUTHORI-
TIES CREATED PURSUANT TO THE PUBLIC HOUSING LAW.
D. "PAST-DUE TAX LIABILITIES" MEANS A PAST-DUE LEGALLY ENFORCEABLE
DEBT WITHIN THE MEANING OF SUBDIVISION ONE OF SECTION ONE HUNDRED SEVEN-
TY-ONE-W OF THE TAX LAW IN AN AMOUNT THAT IS EQUAL TO FIVE HUNDRED
DOLLARS OR MORE.
E. "STATE AUTHORITY" MEANS A PUBLIC AUTHORITY OR PUBLIC BENEFIT CORPO-
RATION CREATED BY OR EXISTING UNDER THIS CHAPTER OR ANY OTHER LAW OF THE
STATE OF NEW YORK THAT HAS THE POWER TO MAKE GRANTS OR LOAN FUNDS OF
STATE MONIES AND HAS ONE OR MORE OF ITS MEMBERS APPOINTED BY THE GOVER-
NOR OR WHO SERVE AS MEMBER BY VIRTUE OF HOLDING A CIVIL OFFICE OF THE
STATE, OTHER THAN AN INTERSTATE OR INTERNATIONAL AUTHORITY OR PUBLIC
BENEFIT CORPORATION, INCLUDING SUBSIDIARIES AND AFFILIATES OF SUCH
PUBLIC AUTHORITY OR PUBLIC BENEFIT CORPORATION.
2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY STATE AUTHORITY OR
LOCAL AUTHORITY THAT PROCESSES AN APPLICATION FOR A GRANT SHALL REQUIRE,
AS A CONDITION TO RECEIVE SUCH GRANT, THE RECEIPT OF A TAX CLEARANCE
THAT SUCH APPLICANT HAS NO PAST-DUE TAX LIABILITIES PURSUANT TO SECTION
ONE HUNDRED SEVENTY-ONE-W OF THE TAX LAW.
3. THE APPLICANT SHALL BE REQUIRED TO PROVIDE ANY INFORMATION DEEMED
NECESSARY BY THE STATE AUTHORITY OR THE LOCAL AUTHORITY AND THE DEPART-
MENT OF TAXATION AND FINANCE TO EFFICIENTLY AND ACCURATELY PROVIDE A
CLEARANCE OF NO PAST-DUE TAX LIABILITIES, AND THE FAILURE BY THE APPLI-
CANT TO PROVIDE SUCH INFORMATION SHALL RENDER THE APPLICATION INCOM-
PLETE.
4. IF THE STATE AUTHORITY OR THE LOCAL AUTHORITY RECEIVES NOTIFICATION
THAT PAST-DUE TAX LIABILITIES ARE OWED BY THE APPLICANT, THE STATE
AUTHORITY OR THE LOCAL AUTHORITY, AS THE CASE MAY BE, SHALL DENY THE
GRANT APPLICATION AND SHALL NOTIFY THE APPLICANT TO CONTACT THE DEPART-
MENT OF TAXATION AND FINANCE TO RESOLVE THE PAST-DUE TAX LIABILITIES AND
THAT NO GRANT MAY BE ISSUED UNTIL THE TAX LIABILITIES ARE RESOLVED. ANY
PERIOD OF TIME THAT IS DETERMINED ACCORDING TO THE PROVISIONS OF THIS
SECTION OR THE TAX LAW SHALL COMMENCE TO RUN FROM THE DATE OF NOTIFICA-
TION TO THE APPLICANT THAT THE TAX CLEARANCE WAS DENIED.
S 2. The tax law is amended by adding a new section 171-w to read as
follows:
S 171-W. ENFORCEMENT OF DELINQUENT TAX LIABILITIES THROUGH TAX CLEAR-
ANCES. (1) FOR THE PURPOSES OF THIS SECTION, THE TERM "TAX LIABILITIES"
SHALL MEAN ANY TAX, SURCHARGE, OR FEE ADMINISTERED BY THE COMMISSIONER,
OR ANY PENALTY OR INTEREST OWED BY AN INDIVIDUAL OR ENTITY. THE TERM
"PAST-DUE TAX LIABILITIES" MEANS ANY UNPAID TAX LIABILITIES THAT HAVE
BECOME FIXED AND FINAL SUCH THAT THE TAXPAYER NO LONGER HAS ANY RIGHT TO
ADMINISTRATIVE OR JUDICIAL REVIEW. THE TERM "GOVERNMENT ENTITY" MEANS
THE STATE OF NEW YORK, OR ANY OF ITS AGENCIES, POLITICAL SUBDIVISIONS,
INSTRUMENTALITIES, PUBLIC CORPORATIONS (INCLUDING A PUBLIC CORPORATION
S. 4209 101
CREATED PURSUANT TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA),
OR COMBINATION THEREOF.
(2) THE COMMISSIONER, OR HIS OR HER DESIGNEE, SHALL COOPERATE WITH ANY
GOVERNMENT ENTITY THAT IS REQUIRED BY LAW OR HAS ELECTED TO REQUIRE TAX
CLEARANCES TO ESTABLISH PROCEDURES BY WHICH THE DEPARTMENT SHALL RECEIVE
A TAX CLEARANCE REQUEST AND TRANSMIT SUCH TAX CLEARANCE TO THE GOVERN-
MENT ENTITY, AND ANY OTHER PROCEDURES DEEMED NECESSARY TO CARRY OUT THE
PROVISIONS OF THIS SECTION. THESE PROCEDURES SHALL, TO THE EXTENT PRAC-
TICABLE, REQUIRE SECURE ELECTRONIC COMMUNICATION BETWEEN THE DEPARTMENT
AND THE REQUESTING GOVERNMENT ENTITY FOR THE TRANSMISSION OF TAX CLEAR-
ANCE REQUESTS TO THE DEPARTMENT AND TRANSMISSION OF TAX CLEARANCES TO
THE REQUESTING ENTITY. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, A
GOVERNMENT ENTITY SHALL BE AUTHORIZED TO SHARE ANY APPLICANT DATA OR
INFORMATION WITH THE DEPARTMENT THAT IS NECESSARY TO ENSURE THE PROPER
MATCHING OF THE APPLICANT TO THE TAX RECORDS MAINTAINED BY THE DEPART-
MENT.
(3) UPON RECEIPT OF A TAX CLEARANCE REQUEST, THE DEPARTMENT SHALL
EXAMINE ITS RECORDS TO DETERMINE WHETHER THE SUBJECT OF THE TAX CLEAR-
ANCE REQUEST HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN EXCESS OF THE
DOLLAR THRESHOLD APPLICABLE FOR SUCH TAX CLEARANCE REQUEST OR, WHERE NO
THRESHOLD HAS BEEN ESTABLISHED BY LAW OR OTHERWISE, EQUAL TO OR IN
EXCESS OF FIVE HUNDRED DOLLARS. WHEN A TAX CLEARANCE REQUEST SO
REQUIRES, THE DEPARTMENT SHALL ALSO DETERMINE WHETHER (I) THE SUBJECT OF
SUCH REQUEST HAS COMPLIED WITH APPLICABLE TAX RETURN FILING REQUIREMENTS
FOR EACH OF THE PAST THREE YEARS; AND/OR (II) WHETHER A SUBJECT OF SUCH
REQUEST THAT IS AN INDIVIDUAL OR ENTITY THAT IS A PERSON REQUIRED TO
REGISTER PURSUANT TO SECTION ONE THOUSAND ONE HUNDRED THIRTY-FOUR OF
THIS CHAPTER IS REGISTERED PURSUANT TO SUCH SECTION. THE DEPARTMENT
SHALL DENY A TAX CLEARANCE IF IT DETERMINES THAT THE SUBJECT OF A TAX
CLEARANCE REQUEST HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN EXCESS OF
THE APPLICABLE THRESHOLD OR, WHEN THE TAX CLEARANCE REQUEST SO REQUIRES,
HAS NOT COMPLIED WITH APPLICABLE RETURN FILING AND/OR REGISTRATION
REQUIREMENTS.
(4) IF A TAX CLEARANCE IS DENIED, THE GOVERNMENT ENTITY THAT REQUESTED
THE CLEARANCE SHALL PROVIDE NOTICE TO THE APPLICANT TO CONTACT THE
DEPARTMENT. SUCH NOTICE SHALL BE MADE BY FIRST CLASS MAIL WITH A CERTIF-
ICATE OF MAILING AND A COPY OF SUCH NOTICE ALSO SHALL BE PROVIDED TO THE
DEPARTMENT. WHEN THE APPLICANT CONTACTS THE DEPARTMENT, THE DEPARTMENT
SHALL INFORM THE APPLICANT OF THE BASIS FOR THE DENIAL OF THE TAX CLEAR-
ANCE AND SHALL ALSO INFORM THE APPLICANT (I) THAT A TAX CLEARANCE DENIED
DUE TO PAST-DUE TAX LIABILITIES MAY BE ISSUED ONCE THE TAXPAYER FULLY
SATISFIES PAST-DUE TAX LIABILITIES OR MAKES PAYMENT ARRANGEMENTS SATIS-
FACTORY TO THE COMMISSIONER; (II) THAT A TAX CLEARANCE DENIED DUE TO
FAILURE TO FILE TAX RETURNS MAY BE ISSUED ONCE THE APPLICANT HAS SATIS-
FIED THE APPLICABLE RETURN FILING REQUIREMENTS; (III) THAT A TAX CLEAR-
ANCE DENIED FOR FAILURE TO REGISTER PURSUANT TO SECTION ONE THOUSAND ONE
HUNDRED THIRTY-FOUR OF THIS CHAPTER MAY BE ISSUED ONCE THE APPLICANT HAS
REGISTERED PURSUANT TO SUCH SECTION; AND (IV) THE GROUNDS FOR CHALLENG-
ING THE DENIAL OF A TAX CLEARANCE LISTED IN SUBDIVISION FIVE OF THIS
SECTION.
(5) (A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AND EXCEPT AS
SPECIFICALLY PROVIDED HEREIN, AN APPLICANT DENIED A TAX CLEARANCE SHALL
HAVE NO RIGHT TO COMMENCE A COURT ACTION OR PROCEEDING OR SEEK ANY OTHER
LEGAL RECOURSE AGAINST THE DEPARTMENT OR THE GOVERNMENT ENTITY RELATED
TO THE DENIAL OF A TAX CLEARANCE BY THE DEPARTMENT.
S. 4209 102
(B) AN APPLICANT SEEKING TO CHALLENGE THE DENIAL OF A TAX CLEARANCE
MUST PROTEST TO THE DEPARTMENT OR THE DIVISION OF TAX APPEALS NO LATER
THAN SIXTY DAYS FROM THE DATE OF THE NOTIFICATION TO THE APPLICANT THAT
THE TAX CLEARANCE WAS DENIED. AN APPLICANT MAY CHALLENGE A DEPARTMENT
FINDING OF PAST-DUE TAX LIABILITIES ONLY ON THE GROUNDS THAT (I) THE
INDIVIDUAL OR ENTITY DENIED THE TAX CLEARANCE IS NOT THE INDIVIDUAL OR
ENTITY WITH THE PAST-DUE TAX LIABILITIES AT ISSUE; (II) THE PAST-DUE TAX
LIABILITIES WERE SATISFIED; (III) THE APPLICANT'S WAGES ARE BEING
GARNISHED FOR THE PAYMENT OF CHILD SUPPORT OR COMBINED CHILD AND SPOUSAL
SUPPORT PURSUANT TO AN INCOME EXECUTION ISSUED PURSUANT TO SECTION FIVE
THOUSAND TWO HUNDRED FORTY-ONE OR FIVE THOUSAND TWO HUNDRED FORTY-TWO OF
THE CIVIL PRACTICE LAW AND RULES OR ANOTHER STATE'S INCOME WITHHOLDING
ORDER AS AUTHORIZED UNDER PART FIVE OF ARTICLE FIVE-B OF THE FAMILY
COURT ACT, OR GARNISHED BY THE DEPARTMENT FOR THE PAYMENT OF THE
PAST-DUE TAX LIABILITIES AT ISSUE; OR (IV) THE APPLICANT IS MAKING CHILD
SUPPORT PAYMENTS OR COMBINED CHILD AND SPOUSAL SUPPORT PAYMENTS PURSUANT
TO A SATISFACTORY PAYMENT ARRANGEMENT UNDER SECTION ONE HUNDRED ELEVEN-B
OF THE SOCIAL SERVICES LAW WITH A SUPPORT COLLECTION UNIT OR OTHERWISE
MAKING PERIODIC PAYMENTS IN ACCORDANCE WITH SECTION FOUR HUNDRED FORTY
OF THE FAMILY COURT ACT. AN APPLICANT MAY CHALLENGE A DEPARTMENT FINDING
OF FAILURE TO COMPLY WITH TAX RETURN FILING REQUIREMENTS ONLY ON THE
GROUNDS THAT ALL REQUIRED TAX RETURNS HAVE BEEN FILED FOR EACH OF THE
PAST THREE YEARS.
(C) NOTHING IN THIS SUBDIVISION IS INTENDED TO LIMIT ANY APPLICANT
FROM SEEKING RELIEF FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION
SIX HUNDRED FIFTY-FOUR OF THIS CHAPTER, TO THE EXTENT THAT HE OR SHE IS
ELIGIBLE PURSUANT TO THAT SECTION, OR ESTABLISHING TO THE DEPARTMENT
THAT THE ENFORCEMENT OF THE UNDERLYING TAX LIABILITIES HAS BEEN STAYED
BY THE FILING OF A PETITION PURSUANT TO THE BANKRUPTCY CODE OF 1978
(TITLE ELEVEN OF THE UNITED STATES CODE).
(6) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE DEPARTMENT MAY
EXCHANGE WITH A GOVERNMENT ENTITY ANY DATA OR INFORMATION THAT, IN THE
DISCRETION OF THE COMMISSIONER, IS NECESSARY FOR THE IMPLEMENTATION OF A
TAX CLEARANCE REQUIREMENT. HOWEVER, NO GOVERNMENT ENTITY MAY RE-DISCLOSE
THIS INFORMATION TO ANY OTHER ENTITY OR PERSON, OTHER THAN FOR THE
PURPOSE OF INFORMING THE APPLICANT THAT A REQUIRED TAX CLEARANCE HAS
BEEN DENIED, UNLESS OTHERWISE PERMITTED BY LAW.
(7) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE ACTIVITIES TO
COLLECT PAST-DUE TAX LIABILITIES UNDERTAKEN BY THE DEPARTMENT PURSUANT
TO THIS SECTION SHALL NOT IN ANY WAY LIMIT, RESTRICT OR IMPAIR THE
DEPARTMENT FROM EXERCISING ANY OTHER AUTHORITY TO COLLECT OR ENFORCE TAX
LIABILITIES UNDER ANY OTHER APPLICABLE PROVISION OF LAW.
(8) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE PROVISIONS OF
THIS SECTION ARE NOT APPLICABLE TO THE TAX CLEARANCE REQUIRED BY SECTION
171-V OF THIS ARTICLE.
S 3. This act shall take effect immediately; provided, however, that
the department of taxation and finance and any state or local public
authority may work to execute the necessary procedures and technical
changes to support the tax clearance process as described in sections
one and two of this act before the effective date of this act.
PART HH
Section 1. The tax law is amended by adding a new section 171-z to
read as follows:
S. 4209 103
S 171-Z. RECIPROCAL TAX COLLECTION AGREEMENTS WITH OTHER CLAIMANT
STATES. (1) THE COMMISSIONER SHALL HAVE THE AUTHORITY TO ENTER INTO
AGREEMENTS WITH CLAIMANT STATES TO COLLECT AND PAY OVER TO CLAIMANT
STATES, TAXES OWED TO CLAIMANT STATES BY NEW YORK TAXPAYERS AND TO
CERTIFY AND REQUEST THAT CLAIMANT STATES COLLECT AND PAY OVER TAXES OWED
TO NEW YORK BY TAXPAYERS RESIDING IN CLAIMANT STATES. FOR PURPOSES OF
THIS SECTION, THE TERM "CLAIMANT STATE" SHALL MEAN ANY OTHER STATE IN
THE UNITED STATES OR THE DISTRICT OF COLUMBIA THAT ALLOWS THE COMMIS-
SIONER, IN CASES WHERE A TAXPAYER IN ANOTHER STATE OWES TAXES TO NEW
YORK STATE, TO CERTIFY AND REQUEST THAT THE OTHER STATE COLLECT AND PAY
SUCH COLLECTED TAXES TO NEW YORK STATE; THE TERM "TAXES" SHALL MEAN ANY
AMOUNT OF TAX IMPOSED UNDER THE LAWS OF NEW YORK OR A CLAIMANT STATE,
DUE AND PAYABLE TO NEW YORK OR A CLAIMANT STATE, INCLUDING ADDITIONS TO
TAX FOR PENALTIES AND INTEREST, THAT HAS BECOME FIXED AND FINAL SUCH
THAT THE TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL
REVIEW; THE TERM "TAXPAYER" SHALL MEAN ANY INDIVIDUAL, CORPORATION,
PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP OR COMPANY, PARTNER, MEMBER,
MANAGER, ESTATE, TRUST, FIDUCIARY OR ENTITY, WHO OR WHICH HAS BEEN IDEN-
TIFIED BY NEW YORK OR A CLAIMANT STATE UNDER THIS SECTION AS OWING TAXES
TO NEW YORK OR A CLAIMANT STATE.
(2) THE RECIPROCAL TAX COLLECTION AGREEMENTS MAY INCLUDE THE FOLLOWING
PROVISIONS:
(A) UPON THE REQUEST AND CERTIFICATION OF A CLAIMANT STATE TO THE
COMMISSIONER THAT A TAXPAYER OWES TAXES TO SUCH CLAIMANT STATE, THE
COMMISSIONER MAY, PURSUANT TO THE AUTHORITY UNDER THIS SECTION, COLLECT
SUCH TAXES IN THE SAME MANNER THAT THE COMMISSIONER CAN COLLECT TAXES
DUE AND PAYABLE TO NEW YORK STATE, AND SHALL PAY OVER SUCH COLLECTED
AMOUNT TO THE CLAIMANT STATE IN ACCORDANCE WITH THE PROVISIONS OF THIS
SECTION. THE COMMISSIONER SHALL NOT COLLECT SUCH TAXES UNLESS THE LAWS
OF THE CLAIMANT STATE (I) ALLOW THE COMMISSIONER, IN CASES WHERE A
TAXPAYER OWES TAXES TO NEW YORK STATE, TO CERTIFY AND REQUEST THE CLAIM-
ANT STATE COLLECT SUCH TAXES OWED TO NEW YORK STATE, AND (II) PROVIDE
FOR THE PAYMENT OF SUCH COLLECTED AMOUNT TO NEW YORK STATE.
(B) SUCH CERTIFICATION SHALL INCLUDE (I) THE FULL NAME AND ADDRESS OF
THE TAXPAYER; (II) THE TAXPAYER'S SOCIAL SECURITY NUMBER OR FEDERAL
EMPLOYER IDENTIFICATION NUMBER; (III) THE AMOUNT OF THE TAX FOR THE
TAXABLE PERIOD SOUGHT TO BE COLLECTED, INCLUDING A DETAILED STATEMENT
FOR EACH TAXABLE PERIOD SHOWING TAX, INTEREST AND PENALTY; (IV) A STATE-
MENT WHETHER THE TAXPAYER FILED A TAX RETURN WITH THE CLAIMANT STATE FOR
SUCH TAX, AND, IF SO, WHETHER SUCH TAX RETURN WAS FILED UNDER PROTEST;
AND (V) A STATEMENT THAT ANY ADMINISTRATIVE OR JUDICIAL REMEDIES, OR
BOTH, HAVE BEEN EXHAUSTED OR HAVE LAPSED AND THE AMOUNT OF TAX IS LEGAL-
LY ENFORCEABLE UNDER THE LAWS OF THE CLAIMANT STATE AGAINST THE TAXPAY-
ER.
(C) UPON RECEIPT BY THE COMMISSIONER OF THE REQUIRED CERTIFICATION,
THE COMMISSIONER SHALL NOTIFY THE TAXPAYER BY FIRST-CLASS MAIL WITH
CERTIFICATE OF MAILING TO THE TAXPAYER'S LAST KNOWN ADDRESS THAT THE
COMMISSIONER HAS RECEIVED A REQUEST FROM THE CLAIMANT STATE TO COLLECT
TAXES FROM THE TAXPAYER, THAT THE TAXPAYER HAS THE RIGHT TO PROTEST THE
COLLECTION OF SUCH TAXES, THAT FAILURE TO FILE A PROTEST IN ACCORDANCE
WITH PARAGRAPH (D) OF THIS SUBDIVISION SHALL CONSTITUTE A WAIVER OF ANY
CLAIM AGAINST NEW YORK STATE REGARDING THE COLLECTION OF SUCH TAXES AND
THAT THE AMOUNT, UPON COLLECTION, WILL BE PAID OVER TO THE CLAIMANT
STATE. SIXTY DAYS AFTER THE DATE ON WHICH IT IS MAILED, A NOTICE UNDER
THIS SUBDIVISION SHALL BE FINAL EXCEPT ONLY FOR SUCH AMOUNTS AS TO WHICH
S. 4209 104
THE TAXPAYER HAS FILED, AS PROVIDED IN PARAGRAPH (D) OF THIS SUBDIVI-
SION, A WRITTEN PROTEST WITH THE COMMISSIONER.
(D) ANY TAXPAYER NOTIFIED IN ACCORDANCE WITH PARAGRAPH (C) OF THIS
SUBDIVISION MAY, ON OR BEFORE THE SIXTIETH DAY AFTER THE MAILING OF SUCH
NOTICE BY THE COMMISSIONER, PROTEST THE COLLECTION OF ALL OR A PORTION
OF SUCH TAXES BY FILING WITH THE CLAIMANT STATE AND PROVIDING A COPY TO
THE COMMISSIONER A WRITTEN PROTEST IN WHICH THE TAXPAYER SHALL SET FORTH
THE GROUNDS ON WHICH THE PROTEST IS BASED. IF A TIMELY PROTEST IS FILED,
THE COMMISSIONER SHALL REFRAIN FROM COLLECTING SUCH TAXES AND SHALL SEND
A COPY OF THE PROTEST TO THE CLAIMANT STATE FOR A DETERMINATION OF THE
PROTEST ON ITS MERITS IN ACCORDANCE WITH THE LAWS OF THE CLAIMANT STATE.
(E) THE COMMISSIONER MAY ENTER INTO AGREEMENTS WITH CLAIMANT STATES
THAT (I) RELATE TO PROCEDURES AND METHODS TO BE EMPLOYED BY A CLAIMANT
STATE WITH RESPECT TO THE OPERATION OF THIS SECTION; (II) SAFEGUARD
AGAINST THE DISCLOSURE OR INAPPROPRIATE USE OF ANY INFORMATION THAT
IDENTIFIES, DIRECTLY OR INDIRECTLY, A PARTICULAR TAXPAYER OBTAINED OR
MAINTAINED PURSUANT TO THIS SECTION; (III) ESTABLISH A MINIMUM THRESHOLD
FOR THE AMOUNT OF TAXES OWED BY A TAXPAYER TO A CLAIMANT STATE THAT
WOULD TRIGGER THE OPERATION OF THIS SECTION; (IV) PROVIDE THAT EACH
CLAIMANT STATE SHALL BEAR THE COSTS THAT ARE INCURRED BY IT UNDER SUCH
RECIPROCAL AGREEMENTS; (V) SET THE COMMENCEMENT AND TERMINATION DATE OF
SUCH RECIPROCAL AGREEMENTS; AND (VI) PROVIDE THAT EACH CLAIMANT STATE
SHALL AGREE THAT, UPON PAYMENT TO A CLAIMANT STATE OF AN AMOUNT
COLLECTED UNDER THIS SECTION, THE COMMISSIONER AND THE STATE OF NEW YORK
SHALL BE DISCHARGED OF ANY OBLIGATION OR LIABILITY TO A TAXPAYER AND A
CLAIMANT STATE WITH RESPECT TO THE AMOUNTS COLLECTED FROM THE TAXPAYER
AND PAID TO THE CLAIMANT STATE PURSUANT TO THIS SECTION. ANY ACTION FOR
REFUND OF THOSE AMOUNTS SHALL LIE SOLELY AGAINST THE CLAIMANT STATE.
(3) FOR PURPOSES OF MAKING PAYMENT OF ANY TAXES THAT ARE COLLECTED BY
THE COMMISSIONER ON BEHALF OF ANY CLAIMANT STATE UNDER RECIPROCAL AGREE-
MENTS, THE OFFICE OF THE STATE COMPTROLLER, UPON REQUEST BY THE COMMIS-
SIONER, IS AUTHORIZED TO PAY THE AMOUNT COLLECTED FROM THE RECIPROCAL
TAX COLLECTION REVENUE FUND ESTABLISHED PURSUANT TO SECTION
NINETY-NINE-W OF THE STATE FINANCE LAW TO WHICH SUCH TAXES ARE CREDITED.
(4) NOTWITHSTANDING OTHER PROVISIONS OF THIS CHAPTER, THE COMMISSIONER
IS AUTHORIZED TO RELEASE TO THE CLAIMANT STATE ANY SPECIFIC TAXPAYER
INFORMATION NECESSARY FOR PURPOSES OF IMPLEMENTING AND ADMINISTERING AN
AGREEMENT ENTERED INTO BETWEEN THE CLAIMANT STATE AND NEW YORK STATE
UNDER THIS SECTION.
S 2. The state finance law is amended by adding a new section 99-w to
read as follows:
S 99-W. RECIPROCAL TAX COLLECTION REVENUE FUND. 1. THERE IS HEREBY
ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE
COMMISSIONER OF TAXATION AND FINANCE A SPECIAL REVENUE FUND KNOWN AS THE
"RECIPROCAL TAX COLLECTION REVENUE FUND".
2. ALL MONIES RECEIVED BY THE RECIPROCAL TAX COLLECTION REVENUE FUND
PURSUANT TO RECIPROCAL TAX COLLECTION AGREEMENTS WITH OTHER STATES
ENTERED INTO PURSUANT TO SECTION ONE HUNDRED SEVENTY-ONE-Z OF THE TAX
LAW SHALL BE DEPOSITED TO THE EXCLUSIVE CREDIT OF SUCH FUND. SAID MONIES
SHALL BE KEPT SEPARATE AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONIES
IN THE CUSTODY OF THE COMPTROLLER OR THE COMMISSIONER OF TAXATION AND
FINANCE.
3. THE MONIES IN SAID REVENUE FUND SHALL BE RETAINED UNTIL THE COMMIS-
SIONER OF TAXATION AND FINANCE REQUESTS THE STATE COMPTROLLER MAKE A
PAYMENT OF TAXES COLLECTED BY THE COMMISSIONER OF TAXATION AND FINANCE
ON BEHALF OF A CLAIMANT STATE UNDER A RECIPROCAL TAX COLLECTION AGREE-
S. 4209 105
MENT ENTERED INTO PURSUANT TO SECTION ONE HUNDRED SEVENTY-ONE-Z OF THE
TAX LAW. THE STATE COMPTROLLER SHALL BE AUTHORIZED TO PAY A CLAIMANT
STATE THE AMOUNT COLLECTED FROM THE RECIPROCAL TAX COLLECTION REVENUE
FUND.
S 3. This act shall take effect immediately.
PART II
Intentionally Omitted
PART JJ
Intentionally Omitted
PART KK
Intentionally Omitted
PART LL
Section 1. Subdivision 2 of section 136 of the social services law, as
amended by section 24 of part B of chapter 436 of the laws of 1997, is
amended to read as follows:
2. All communications and information relating to a person receiving
public assistance or care obtained by any social services official,
service officer, or employee in the course of his or her work shall be
considered confidential and, except as otherwise provided in this
section, shall be disclosed only to the commissioner, or his or her
authorized representative, the commissioner of labor, or his or her
authorized representative, the commissioner of health, or his or her
authorized representative, THE COMMISSIONER OF TAXATION AND FINANCE, OR
HIS OR HER AUTHORIZED REPRESENTATIVE, the welfare inspector general, or
his or her authorized representative, the county board of supervisors,
city council, town board or other board or body authorized and required
to appropriate funds for public assistance and care in and for such
county, city or town or its authorized representative or, by authority
of the county, city or town social services official, to a person or
agency considered entitled to such information. Nothing herein shall
preclude a social services official from reporting to an appropriate
agency or official, including law enforcement agencies or officials,
known or suspected instances of physical or mental injury, sexual abuse
or exploitation, sexual contact with a minor or negligent treatment or
maltreatment of a child of which the official becomes aware in the
administration of public assistance and care nor shall it preclude
communication with the federal immigration and naturalization service
regarding the immigration status of any individual.
S 2. This act shall take effect immediately.
PART MM
Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of subdivi-
sion b of section 1612 of the tax law, as amended by section 1 of part
BB of chapter 59 of the laws of 2014, is amended to read as follows:
S. 4209 106
(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, and except for a vendor
track located west of State Route 14 from Sodus Point to the Pennsylva-
nia border within New York, 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 [fifteen] SIXTEEN. Any amount attributable to
a capital expenditure approved prior to April first, two thousand
[fifteen] SIXTEEN and completed before April first, two thousand [seven-
teen] EIGHTEEN; or approved prior to April first, two thousand [nine-
teen] TWENTY and completed before April first, two thousand [twenty-one]
TWENTY-TWO for a vendor track located west of State Route 14 from Sodus
Point to the Pennsylvania border within New York, 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 [fifteen] SIXTEEN and completed prior to April first, two thou-
sand [seventeen] EIGHTEEN, exceed the vendor track's cumulative capital
award during the five year period ending April first, two thousand
[fifteen] SIXTEEN, the vendor shall continue to receive the capital
award after April first, two thousand [fifteen] SIXTEEN until such
approved capital expenditures are paid to the vendor track subject to
any required co-investment. 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 opera-
tor 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 generally accepted accounting principles, shall reim-
burse 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 [fifteen] SIXTEEN shall be
deposited into the state lottery fund for education aid; and
S 2. This act shall take effect immediately.
PART NN
S. 4209 107
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 AA of chapter 59 of the laws of 2014, 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 commission for
a license so to do. Applications for licenses shall be in such form as
may be prescribed by the commission and shall contain such information
or other material or evidence as the commission may require. No license
shall be issued by the commission authorizing the simulcast transmission
of thoroughbred races from a track located in Suffolk county. The fee
for such licenses shall be five hundred dollars per simulcast facility
and for account wagering licensees that do not operate either a simul-
cast facility that is open to the public within the state of New York or
a licensed racetrack within the state, twenty thousand dollars per year
payable by the licensee to the commission for deposit into the general
fund. Except as provided in this section, the commission 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 wagering. The commission 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 follow-
ing: a franchised corporation, thoroughbred racing corporation or a
harness racing corporation or association; 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 primari-
ly for promotional or marketing purposes as found by the commission. For
purposes of this paragraph, the provisions of section one thousand thir-
teen of this article shall not apply. Any agreement authorizing an
in-home simulcasting experiment commencing prior to May fifteenth, nine-
teen hundred ninety-five, may, and all its terms, be extended until June
thirtieth, two thousand [fifteen] SIXTEEN; 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 commission 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 [fifteen] SIXTEEN; and (iv) no in-home simul-
S. 4209 108
casting 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 AA of chapter 59 of the laws of 2014, 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 [fifteen] SIXTEEN, 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
determined by comparing the total commissions available after July twen-
ty-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 AA of chapter 59 of the laws of 2014, 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 [fifteen] SIXTEEN and on any day regardless of
whether or not a franchised corporation is conducting a race meeting in
Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
two thousand [fifteen] SIXTEEN. On any day on which a franchised corpo-
ration 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 organization, as approved by the commission), 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 AA of chapter 59 of
the laws of 2014, 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 [fifteen] SIXTEEN. 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 AA of chapter 59 of the laws of 2014, 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
S. 4209 109
thirtieth, two thousand [fifteen] SIXTEEN. 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 commission, one thousand eight or one thou-
sand 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 AA of chapter
59 of the laws of 2014, 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 [fourteen] FIFTEEN, 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 commission), 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, 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 AA of chapter 59 of the
laws of 2014, 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, [2015] 2016; 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 AA of chapter 59 of the laws of 2014, 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, [2015] 2016; and section eighteen of this
S. 4209 110
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
AA of chapter 59 of the laws of 2014, 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 gaming commission.
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 [fifteen] SIXTEEN, 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
S. 4209 111
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
[fifteen] SIXTEEN, such payment shall be seven-tenths of one per centum
of such pools.
S 10. This act shall take effect immediately.
PART OO
Section 1. Section 1602 of the tax law is amended by adding a new
subdivision 6 to read as follows:
6. "VIDEO LOTTERY GAMING" MEANS ANY LOTTERY GAME PLAYED ON A VIDEO
LOTTERY TERMINAL THAT ISSUES ELECTRONIC TICKETS, ALLOWS MULTIPLE PLAYERS
TO PARTICIPATE IN THE SAME GAME AND DETERMINES WINNERS TO A MATERIAL
DEGREE UPON THE ELEMENT OF CHANCE, NOTWITHSTANDING THAT THE SKILL OF A
PLAYER MAY INFLUENCE SUCH PLAYER'S CHANCE OF WINNING A GAME. VIDEO
LOTTERY GAMING MAY INCLUDE ELEMENTS OF PLAYER INTERACTION AFTER A PLAYER
RECEIVES AN INITIAL CHANCE.
S 2. Subdivision 28 of section 225.00 of the penal law, as added by
chapter 174 of the laws of 2013, is amended to read as follows:
28. "Video lottery gaming" [means any lottery game played on a video
lottery terminal, which consists of multiple players competing for a
chance to win a random drawn prize pursuant to section sixteen hundred
seventeen-a and paragraph five of subdivision a of section sixteen
hundred twelve of the tax law, as amended and implemented] HAS THE MEAN-
ING SET FORTH IN SUBDIVISION SIX OF SECTION SIXTEEN HUNDRED TWO OF THE
TAX LAW.
S 3. This act shall take effect on the thirtieth day after it shall
have become a law and shall expire and be deemed repealed May 1, 2017.
PART PP
Section 1. Paragraph d of subdivision 1 of section 207 of the racing,
pari-mutuel wagering and breeding law, as added by chapter 457 of the
laws of 2012, is amended to read as follows:
d. The board, which shall become effective upon appointment of a
majority of public members, shall terminate [three] FOUR years from its
date of creation. The board shall propose, no less than one hundred
eighty days prior to its termination, recommendations to the governor
and the state legislature representing a statutory plan for the prospec-
tive not-for-profit governing structure of The New York Racing Associ-
ation, Inc.
S 2. This act shall take effect June 18, 2015.
PART QQ
Intentionally Omitted
PART RR
Section 1. Subdivision 2 of section 187-b of the tax law, as amended
by section 1 of part G of chapter 59 of the laws of 2013, is amended to
read as follows:
S. 4209 112
2. (A) Alternative fuel vehicle refueling property and electric vehi-
cle recharging property. The credit under this section for alternative
fuel vehicle refueling and electric vehicle recharging property shall
equal for each installation of property the lesser of five thousand
dollars or THE PRODUCT OF fifty percent [of the cost of any such proper-
ty:
(a) which is] AND THE COST OF ANY SUCH PROPERTY LESS ANY COSTS PAID
FROM THE PROCEEDS OF GRANTS.
(B) TO QUALIFY FOR THE CREDIT, THE PROPERTY MUST:
(I) BE located in this state;
[(b) which constitutes] (II) CONSTITUTE alternative fuel vehicle refu-
eling property or electric vehicle recharging property; and
[(c) for which none of the cost has been] (III) NOT BE paid for from
the proceeds of grants AWARDED BEFORE JANUARY FIRST, TWO THOUSAND
FIFTEEN, including grants from the New York state energy research and
development authority or the New York power authority.
S 2. Paragraph (b) of subdivision 30 of section 210-B of the tax law,
as added by section 17 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(b) (I) Alternative fuel vehicle refueling property and electric vehi-
cle recharging property. The credit under this subdivision for alterna-
tive fuel vehicle refueling property and electric vehicle recharging
property shall equal for each installation of property the lesser of
five thousand dollars or THE PRODUCT OF fifty percent [of the cost of
any such property:
(i) which is] AND THE COST OF ANY SUCH PROPERTY LESS ANY COSTS PAID
FROM THE PROCEEDS OF GRANTS.
(II) TO QUALIFY FOR THE CREDIT, THE PROPERTY MUST:
(A) BE located in this state;
[(ii) which constitutes] (B) MUST CONSTITUTE alternative fuel vehicle
refueling property or electric vehicle recharging property; and
[(iii) for which none of the cost has been] (C) NOT BE paid for from
the proceeds of grants AWARDED BEFORE JANUARY FIRST, TWO THOUSAND
FIFTEEN, including grants from the New York state energy research and
development authority or the New York power authority.
S 3. Paragraph 2 of subsection (p) of section 606 of the tax law, as
amended by section 3 of part G of chapter 59 of the laws of 2013, is
amended to read as follows:
(2) (A) Alternative fuel vehicle refueling property and electric vehi-
cle recharging property. The credit under this subsection for alterna-
tive fuel vehicle refueling property or electric vehicle recharging
property shall equal for each installation of property the lesser of
five thousand dollars or THE PRODUCT OF fifty percent [of the cost of
any such property
(A) which is] AND THE COST OF ANY SUCH PROPERTY LESS ANY COSTS PAID
FROM THE PROCEEDS OF GRANTS.
(B) TO QUALIFY FOR THE CREDIT, THE PROPERTY MUST:
(I) BE located in this state;
[(B) which constitutes] (II) CONSTITUTE alternative fuel vehicle refu-
eling property or electric vehicle recharging property; and
[(C) for which none of the cost has been] (III) NOT BE paid for from
the proceeds of grants AWARDED BEFORE JANUARY FIRST, TWO THOUSAND
FIFTEEN, including grants from the New York state energy research and
development authority or the New York power authority.
S 4. This act shall take effect immediately, and shall apply to taxa-
ble years beginning on or after January 1, 2015.
S. 4209 113
PART SS
Section 1. Paragraph (b) of subdivision 6 of section 18-a of the
public service law, as amended by section 1 of part S of chapter 57 of
the laws of 2014, is amended to read as follows:
(b) The temporary state energy and utility service conservation
assessment shall be based upon the following percentum of the utility
entity's gross operating revenues derived from intrastate utility oper-
ations in the last preceding calendar year, minus the amount, if any,
that such utility entity is assessed pursuant to subdivisions one and
two of this section for the corresponding state fiscal year period: (1)
two percentum for the state fiscal year beginning April first, two thou-
sand thirteen; AND (2) 1.63 percentum for the state fiscal year begin-
ning April first, two thousand fourteen[; (3) 1.00 percentum for the
state fiscal year beginning April first, two thousand fifteen; and (4)
.73 percentum for the state fiscal year beginning April first, two thou-
sand sixteen]. With respect to the temporary state energy and utility
service conservation assessment to be paid for the state fiscal year
beginning April first, two thousand [seventeen] FIFTEEN and notwith-
standing clause (i) of paragraph (d) of this subdivision, on or before
March tenth, two thousand [seventeen] FIFTEEN, utility entities shall
make a payment equal to [one-half] SIXTY-ONE HUNDREDTHS of the assess-
ment paid by such entities pursuant to this paragraph for the state
fiscal year beginning on April first, two thousand [sixteen] FOURTEEN;
provided, further that such assessment for state fiscal year beginning
April first, two thousand [seventeen] FIFTEEN shall not be reflected in
a customer's rate after December thirty-first, two thousand [seventeen]
FIFTEEN. With respect to the Long Island power authority, the temporary
state energy and utility service conservation assessment shall be based
upon the following percentum of such authority's gross operating reven-
ues derived from intrastate utility operations in the last preceding
calendar year, minus the amount, if any, that such authority is assessed
pursuant to subdivisions one-a and two of this section for the corre-
sponding state fiscal year period: (1) one percentum for the state
fiscal year beginning April first, two thousand thirteen; AND (2) .84
percentum for the state fiscal year beginning April first, two thousand
fourteen; [(3) .50 percentum for the state fiscal year beginning April
first, two thousand fifteen; and (4) .34 percentum for the state fiscal
year beginning April first, two thousand sixteen;] provided, however,
that should the amount assessed by the department for costs and expenses
pursuant to such subdivisions equal or exceed such authority's temporary
state energy and utility service conservation assessment for a partic-
ular fiscal year, the amount to be paid under this subdivision by such
authority shall be zero. With respect to the temporary state energy and
utility service conservation assessment to be paid for the state fiscal
year beginning April first, two thousand [seventeen] FIFTEEN and
notwithstanding clause (i) of paragraph (d) of this subdivision, on or
before March tenth, two thousand [seventeen] FIFTEEN, the Long Island
power authority shall make a payment equal to [one-half] SIX-TENTHS of
the assessment it paid for the state fiscal year beginning on April
first, two thousand [sixteen] FOURTEEN; provided, further that such
assessment for state fiscal year beginning April first, two thousand
[seventeen] FIFTEEN shall not be reflected in a customer's rate after
December thirty-first, two thousand [seventeen] FIFTEEN. No corporation
or person subject to the jurisdiction of the commission only with
respect to safety, or the power authority of the state of New York,
S. 4209 114
shall be subject to the temporary state energy and utility service
conservation assessment provided for under this subdivision. Utility
entities whose gross operating revenues from intrastate utility oper-
ations are five hundred thousand dollars or less in the preceding calen-
dar year shall not be subject to the temporary state energy and utility
service conservation assessment. The minimum temporary state energy and
utility service conservation assessment to be billed to any utility
entity whose gross revenues from intrastate utility operations are in
excess of five hundred thousand dollars in the preceding calendar year
shall be two hundred dollars.
S 2. This act shall take effect immediately, provided, however, that
the amendments to paragraph (b) of subdivision 6 of section 18-a of the
public service law made by section one of this act shall not affect the
repeal of such subdivision and shall be deemed to be repealed therewith.
PART TT
Section 1. Paragraph 2 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:
(2) The amount of the credit authorized by paragraph one of this
subdivision shall be five percent of the amount of taxes and fees (but
not including any penalty or interest thereon) required to be reported
on, and paid or paid over with, the return but only if the return is
filed on or before the filing due date, but not more than [two] FOUR
hundred dollars, for each quarterly or longer period, except that, with
respect to returns required to be filed for quarterly or longer periods
ending on or before the last day of February, two thousand seven, the
amount of the credit shall be not more than one hundred seventy-five
dollars for each such quarterly or longer period.
S 2. This act shall take effect immediately and shall apply to returns
filed for the quarter beginning September 1, 2015 and thereafter.
PART UU
Section 1. Section 601 of the tax law is amended by adding a new
subsection (d-3) to read as follows:
(D-3) OPTIONAL ALTERNATE SIMPLE CALCULATION. NOTWITHSTANDING
SUBSECTIONS (A) THROUGH (D-2) OF THIS SECTION, A RESIDENT TAXPAYER WITH
FEDERAL ADJUSTED GROSS INCOME LESS THAN ONE MILLION DOLLARS MAY CHOOSE
TO CALCULATE TAX LIABILITY AS FOLLOWS:
(1) IMPOSITION OF TAX. (A) RESIDENT MARRIED INDIVIDUALS FILING JOINT
RETURNS AND RESIDENT SURVIVING SPOUSES. THERE IS HEREBY IMPOSED FOR EACH
TAXABLE YEAR ON THE NEW YORK TAXABLE INCOME OF EVERY RESIDENT MARRIED
INDIVIDUAL WHO MAKES A SINGLE RETURN JOINTLY WITH HIS OR HER SPOUSE
UNDER SUBSECTION (B) OF SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE
AND ON THE NEW YORK TAXABLE INCOME OF EVERY RESIDENT SURVIVING SPOUSE A
TAX DETERMINED IN ACCORDANCE WITH THE FOLLOWING CALCULATION: SIMPLE
TAXABLE INCOME MULTIPLIED BY THE MARRIED JOINT EFFECTIVE TAX RATE.
(B) RESIDENT HEADS OF HOUSEHOLDS. THERE IS HEREBY IMPOSED FOR EACH
TAXABLE YEAR ON THE NEW YORK TAXABLE INCOME OF EVERY RESIDENT HEAD OF A
HOUSEHOLD A TAX DETERMINED IN ACCORDANCE WITH THE FOLLOWING CALCULATION:
SIMPLE TAXABLE INCOME MULTIPLIED BY THE HEADS OF HOUSEHOLD EFFECTIVE TAX
RATE.
(C) RESIDENT UNMARRIED INDIVIDUALS, RESIDENT MARRIED INDIVIDUALS
FILING SEPARATE RETURNS AND RESIDENT ESTATES AND TRUSTS. THERE IS HEREBY
S. 4209 115
IMPOSED FOR EACH TAXABLE YEAR ON THE NEW YORK TAXABLE INCOME OF EVERY
RESIDENT INDIVIDUAL WHO IS NOT A MARRIED INDIVIDUAL WHO MAKES A SINGLE
RETURN JOINTLY WITH HIS OR HER SPOUSE UNDER SUBSECTION (B) OF SECTION
SIX HUNDRED FIFTY-ONE OF THIS ARTICLE OR A RESIDENT HEAD OF A HOUSEHOLD
OR A RESIDENT SURVIVING SPOUSE, AND ON THE NEW YORK TAXABLE INCOME OF
EVERY RESIDENT ESTATE AND TRUST A TAX DETERMINED IN ACCORDANCE WITH THE
FOLLOWING CALCULATION: SIMPLE TAXABLE INCOME MULTIPLIED BY THE SINGLE
EFFECTIVE TAX RATE.
(2) MEANING OF TERMS. (A) SIMPLE TAXABLE INCOME. FOR THE PURPOSES OF
THIS SUBSECTION, SIMPLE TAXABLE INCOME OF A TAXPAYER SHALL MEAN HIS
FEDERAL ADJUSTED GROSS INCOME LESS THE MODIFICATIONS SPECIFIED IN PARA-
GRAPHS THREE, THREE-A, THREE-B, AND THREE-C OF SUBSECTION (C) OF SECTION
SIX HUNDRED TWELVE OF THIS ARTICLE.
(B) EFFECTIVE TAX RATE. FOR THE PURPOSES OF THIS SUBSECTION, EFFECTIVE
TAX RATE SHALL BE DETERMINED BY THE COMMISSIONER BY DIVIDING THE TOTAL
TAX LIABILITY BEFORE CREDITS FOR ALL TAXPAYERS WITHIN A LIABILITY GROUP
BY THE TOTAL FEDERAL ADJUSTED GROSS INCOME FOR ALL TAXPAYERS WITHIN THE
SAME LIABILITY GROUP ON PERSONAL INCOME TAX RETURNS FILED FOR THE TAXA-
BLE YEAR TWO YEARS PRIOR. A LIABILITY GROUP SHALL BE DETERMINED BY (I)
EACH FILING STATUS LISTED IN SUBPARAGRAPHS (A), (B), AND (C) OF PARA-
GRAPH ONE OF THIS SUBSECTION AND (II) NUMBER OF DEPENDENTS AS FOLLOWS:
NO DEPENDENTS, ONE DEPENDENT, TWO DEPENDENTS, OR THREE OR MORE DEPEN-
DENTS. A LIABILITY GROUP SHALL BE ALL RESIDENT TAXPAYERS WITH FEDERAL
ADJUSTED GROSS INCOME: WITHIN FIVE THOUSAND DOLLAR INCREMENTS FOR
INCOMES OVER FIVE THOUSAND DOLLARS AND LESS THAN OR EQUAL TO ONE HUNDRED
FIFTY THOUSAND DOLLARS; WITHIN TEN THOUSAND DOLLAR INCREMENTS FOR
INCOMES OVER ONE HUNDRED FIFTY THOUSAND DOLLARS AND LESS THAN OR EQUAL
TO THREE HUNDRED THOUSAND DOLLARS; AND WITHIN FIFTY THOUSAND DOLLARS FOR
INCOMES OVER THREE HUNDRED THOUSAND DOLLARS AND LESS THAN ONE MILLION
DOLLARS. THE EFFECTIVE TAX RATE SHALL BE CALCULATED TO NO MORE THAN FOUR
DECIMAL PLACES.
(C) MARRIED JOINT EFFECTIVE TAX RATE. MARRIED JOINT EFFECTIVE TAX
RATE SHALL BE THE EFFECTIVE TAX RATE CALCULATED UNDER SUBPARAGRAPH (B)
OF THIS PARAGRAPH FOR TAXPAYERS THAT FILE IN ACCORDANCE WITH SUBPARA-
GRAPH (A) OF PARAGRAPH ONE OF THIS SUBSECTION.
(D) HEADS OF HOUSEHOLDS EFFECTIVE TAX RATE. HEADS OF HOUSEHOLDS
EFFECTIVE TAX RATE SHALL BE THE EFFECTIVE TAX RATE CALCULATED UNDER
SUBPARAGRAPH (B) OF THIS PARAGRAPH FOR TAXPAYERS THAT FILE IN ACCORDANCE
WITH SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION.
(E) SINGLE EFFECTIVE TAX RATE. SINGLE EFFECTIVE TAX RATE SHALL BE THE
EFFECTIVE TAX RATE CALCULATED UNDER SUBPARAGRAPH (B) OF THIS PARAGRAPH
FOR TAXPAYERS THAT FILE IN ACCORDANCE WITH SUBPARAGRAPH (C) OF PARAGRAPH
ONE OF THIS SUBSECTION.
S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2015.
PART VV
Section 1. The civil practice law and rules is amended by adding a new
section 5519-a to read as follows:
S 5519-A. STAY OF ENFORCEMENT FOR MASTER SETTLEMENT AGREEMENT PARTIC-
IPATING AND NON-PARTICIPATING MANUFACTURERS OR THEIR SUCCESSORS. (A) IN
CIVIL LITIGATION CONCERNING A THEORY OF LIABILITY RELATING TO THE HEALTH
EFFECTS, DESIGN, OR MARKETING OF, OR REPRESENTATIONS CONCERNING, TOBACCO
PRODUCTS AS DEFINED BY THE MASTER SETTLEMENT AGREEMENT, AND THAT
INVOLVES A PARTICIPATING OR NON-PARTICIPATING MANUFACTURER, AS THOSE
S. 4209 116
TERMS ARE DEFINED IN THE MASTER SETTLEMENT AGREEMENT, OR ANY OF THEIR
SUCCESSORS, OR PARENT ENTITIES FOUND TO BE LIABLE BY VIRTUE OF THEIR
STATUS AS PARENT TO HAVE CONTROLLED THE CONDUCT OF SUCH MANUFACTURERS OR
THEIR SUCCESSORS, THE UNDERTAKING REQUIRED DURING THE PENDENCY OF ALL
APPEALS OR DISCRETIONARY REVIEWS BY ANY APPELLATE COURTS IN ORDER TO
STAY THE EXECUTION OF ANY JUDGMENT OR ORDER GRANTING LEGAL, EQUITABLE OR
OTHER RELIEF DURING THE ENTIRE COURSE OF APPELLATE REVIEW, INCLUDING
REVIEW BY THE UNITED STATES SUPREME COURT, SHALL BE SET PURSUANT TO THE
APPLICABLE PROVISIONS OF LAW; PROVIDED, HOWEVER, THAT THE COURT OF
ORIGINAL INSTANCE SHALL SET THE TOTAL UNDERTAKING REQUIRED IN AN AMOUNT
NOT TO EXCEED TWO HUNDRED FIFTY MILLION DOLLARS, REGARDLESS OF THE VALUE
OF THE JUDGMENT APPEALED. NOTHING HEREIN SHALL AFFECT THE DISCRETION OF
AN APPELLATE COURT PURSUANT TO SUBDIVISION (C) OF SECTION FIFTY-FIVE
HUNDRED NINETEEN OF THIS ARTICLE. WHERE THE COURT SETS THE UNDERTAKING
IN AN AMOUNT LESS THAN THE JUDGMENT, THE APPEAL SHALL BE DILIGENTLY
PROSECUTED IN GOOD FAITH.
(B) AS USED IN THIS SECTION, "MASTER SETTLEMENT AGREEMENT" SHALL HAVE
THE SAME MEANING AS SET FORTH IN SUBDIVISION FIVE OF SECTION THIRTEEN
HUNDRED NINETY-NINE-OO OF THE PUBLIC HEALTH LAW.
(C) NOTHING CONTAINED IN THIS SECTION SHALL BE READ TO ALLOW: (I)
SUCH PARTICIPATING MANUFACTURER TO CURTAIL ITS FINANCIAL OBLIGATION
UNDER THE MASTER SETTLEMENT AGREEMENT; OR (II) SUCH NON-PARTICIPATING
MANUFACTURER TO CURTAIL ITS OBLIGATION TO PLACE THE AMOUNTS SPECIFIED IN
SUBDIVISION TWO OF SECTION THIRTEEN HUNDRED NINETY-NINE-PP OF THE PUBLIC
HEALTH LAW INTO A QUALIFIED ESCROW FUND AS DEFINED IN SUBDIVISION SIX OF
SECTION THIRTEEN HUNDRED NINETY-NINE-OO OF THE PUBLIC HEALTH LAW.
S 2. This act shall take effect on the thirtieth day after it shall
have become a law, and shall apply to any cause of action pending on or
filed on or after such effective date.
PART WW
Section 1. Article 12 of the tax law is REPEALED.
S 2. Subdivision fourth of section 171 of the tax law is REPEALED.
S 3. Subparagraph (iii) of paragraph (b) of subdivision 1 of section
173-a of the tax law is REPEALED.
S 4. Section 176 of the tax law, as amended by chapter 267 of the laws
of 1987, is amended to read as follows:
S 176. Transfer of the powers and duties of the comptroller in
relation to the assessment or collection of certain taxes. On and after
July first, nineteen hundred twenty-one, all the powers and duties now
conferred or imposed upon the state comptroller in relation to the taxa-
tion of corporations under articles nine and nine-A of this chapter, in
relation to the taxation of transfers of property, under article ten of
this chapter, [in relation to the taxation of transfers of stock, under
article twelve of this chapter,] and in relation to taxation upon and
with respect to personal income, under article sixteen of this chapter
(as such article was in effect on December thirtieth, nineteen hundred
sixty), shall be transferred to and thereafter shall be exercised and
performed by the commissioner, except as powers and duties under any
such article are expressly conferred upon or continued in the state
comptroller by acts of the legislature of nineteen hundred twenty-one,
enacted subsequent to chapter ninety of the laws of nineteen hundred
twenty-one.
S 5. (a) Notwithstanding the repeal of article 12 of the tax law by
this act, all provisions of such article 12 and any regulations adopted
S. 4209 117
thereunder, in respect to the assessment, payment, payment over, deter-
mination, collection and refund of tax imposed thereunder, the rebates
provided for in section 280-a of the tax law, the filing of forms and
returns and the preservation of records for the purposes of the tax
imposed by article 12, the secrecy of returns, the disposition of reven-
ues, and the civil and criminal penalties applicable to the violation of
the provisions of such article 12, shall continue in full force and
effect with respect to all such tax accrued up to the date this act
takes effect; all actions and proceedings, civil or criminal, commenced
or authorized to be commenced under or by virtue of any provision of
such article 12 so repealed, and pending or able to be commenced prior
to the taking effect of such repeal, may be commenced, prosecuted and
defended to final effect in the same manner as they might if such
provisions were not so repealed.
(b) Notwithstanding any provision of law in article 12 of the tax law
or subdivision (a) of this section to the contrary, any application for
a rebate of tax paid under such article 12 must be filed within two
years from the effective date of this act.
S 6. This act shall take effect June 1, 2015.
PART XX
Section 1. Subdivisions 2, 3, 4, 5 and 6 of section 4 of chapter 912
of the laws of 1920 relating to the regulation of boxing, sparring and
wrestling, subdivisions 2 and 6 as amended by chapter 437 of the laws of
2002 and subdivisions 3, 4 and 5 as added by chapter 603 of the laws of
1981, are amended to read as follows:
2. The advisory board shall have power and it shall be the duty of the
board to prepare and submit to the commission for approval regulations
and standards for the physical examination of professional boxers AND
PROFESSIONAL COMBATIVE SPORTS PARTICIPANTS including, without limita-
tion, pre-fight and/or post-fight examinations and periodic comprehen-
sive examinations. The board shall continue to serve in an advisory
capacity to the commission and from time to time prepare and submit to
the commission for approval, such additional regulations and standards
of examination as in their judgment will safeguard the physical welfare
of professional boxers licensed by the commission. The advisory board
shall recommend to the commission from time to time such qualified
physicians, for the purpose of conducting physical examinations of
professional boxers AND PROFESSIONAL COMBATIVE SPORTS PARTICIPANTS and
other services as the rules of the commission shall provide; and shall
recommend to the commission a schedule of fees to be paid to physicians
for such examinations and other services as required by this act.
3. The advisory board shall develop appropriate medical education
programs for all commission personnel involved in the conduct of boxing
and sparring matches or exhibitions OR PROFESSIONAL COMBATIVE SPORTS
MATCHES OR EXHIBITIONS so that such personnel can recognize and act upon
evidence of potential or actual adverse medical indications in a partic-
ipant prior to or during the course of a match OR EXHIBITION.
4. The advisory board shall review the credentials and performance of
each commission physician on an annual basis as a condition of reap-
pointment of each such physician, including each such physician's
comprehension of the medical literature on boxing OR PROFESSIONAL COMBA-
TIVE SPORTS referred to in subdivision five of this section.
5. The advisory board shall recommend to the commission a compilation
of medical publications on the medical aspects of boxing OR PROFESSIONAL
S. 4209 118
COMBATIVE SPORTS which shall be maintained by the commission and be made
available for review to all commission personnel involved in the conduct
of any boxing or sparring match or exhibition OR PROFESSIONAL COMBATIVE
SPORTS MATCH OR EXHIBITION.
6. The advisory board shall also advise the commission on any study of
equipment, procedures or personnel which will, in their opinion, promote
the safety of boxing participants AND PROFESSIONAL COMBATIVE SPORTS
PARTICIPANTS.
S 2. Section 5-a of chapter 912 of the laws of 1920 relating to the
regulation of boxing, sparring and wrestling, as added by chapter 14 of
the laws of 1997, is amended to read as follows:
S 5-a. Combative sports. 1. DEFINITIONS. AS USED IN THIS SECTION:
(A) "BOARD" MEANS MEDICAL ADVISORY BOARD AS ESTABLISHED IN SECTION
FOUR OF THIS ACT.
(B) A "combative sport" shall mean any professional match or exhibi-
tion other than boxing, sparring, wrestling or martial arts wherein the
contestants deliver, or are not forbidden by the applicable rules there-
of from delivering kicks, punches or blows of any kind to the body of an
opponent or opponents. For the purposes of this section, the term
"martial arts" shall include any professional match or exhibition OF A
SINGLE DISCIPLINE sanctioned by AN ORGANIZATION APPROVED BY THE COMMIS-
SION, INCLUDING, BUT NOT LIMITED TO, any of the following organizations:
U.S. Judo Association, U.S. Judo, Inc., U.S. Judo Federation, U.S. Tae
Kwon Do Union, North American Sport Karate Association, U.S.A. Karate
Foundation, U.S. Karate, Inc., World Karate Association, Professional
Karate Association, Karate International, International Kenpo Associ-
ation, or World Wide Kenpo Association. The commission [is authorized
to] SHALL promulgate regulations which would establish a process to
allow for the inclusion or removal of martial arts organizations from
the above list. Such process shall include but not be limited to consid-
eration of the following factors: [(a)] (1) is the organization's
primary purpose to provide instruction in self defense techniques; [(b)]
(2) does the organization require the use of hand, feet and groin
protection during any competition or bout; and [(c)] (3) does the organ-
ization have an established set of rules that require the immediate
termination of any competition or bout when any participant has received
severe punishment or is in danger of suffering serious physical injury.
(C) "COMMISSION" MEANS THE STATE ATHLETIC COMMISSION AS PROVIDED FOR
IN SECTION ONE OF THIS CHAPTER OR AN AGENT OF THE COMMISSION ACTING ON
ITS BEHALF.
(D) "MIXED MARTIAL ARTS" MEANS ANY PROFESSIONAL COMBATIVE SPORTS
COMPETITION WHEREIN THE RULES OF SUCH COMPETITION SUBJECT TO THE APPLI-
CABLE LIMITATIONS AS SET FORTH BY THE COMMISSION AUTHORIZE PROFESSIONAL
COMBATIVE SPORTS MATCHES OR EXHIBITIONS BETWEEN VARIOUS FIGHTING DISCI-
PLINES, INCLUDING THE UTILIZATION OF PERMITTED MARTIAL ARTS TECHNIQUES,
INCLUDING STRIKING, KICKING AND GRAPPLING. NO NON-PROFESSIONAL OR
AMATEUR BOUT, EXHIBITION OR PARTICIPANT SHALL BE AUTHORIZED BY THIS
SECTION.
(E) "PROFESSIONAL COMBATIVE SPORTS PARTICIPANT" OR "PARTICIPANT" SHALL
MEAN A COMBATIVE SPORTS FIGHTER WHO COMPETES FOR A MONEY PRIZE OR TEACH-
ES OR PURSUES OR ASSISTS IN THE PRACTICE OF MIXED MARTIAL ARTS AS A
MEANS OF OBTAINING A LIVELIHOOD OR PECUNIARY GAIN, AND ANY CONTEST
CONFORMING TO THE RULES, REGULATIONS AND REQUIREMENTS OF THIS SECTION.
(F) "PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION" SHALL MEAN ANY
MATCH OR EXHIBITION THAT MUST BE APPROVED BY THE COMMISSION WHERE
S. 4209 119
PROFESSIONAL COMBATIVE SPORTS PARTICIPANTS RECEIVE CONSIDERATION OF ANY
VALUE OR AN ADMISSION IS CHARGED.
1-A. COMMISSION REVIEW. THE COMMISSION SHALL REVIEW EACH MARTIAL ARTS
SANCTIONING ORGANIZATION, INCLUDING THOSE LISTED IN SUBDIVISION ONE OF
THIS SECTION, AT LEAST BIENNIALLY, OR SOONER IF DETERMINED NECESSARY
BASED UPON THE PERIODIC COMPLIANCE CHECKS OR COMPLAINTS TO THE COMMIS-
SION, TO DETERMINE CONTINUATION OF THE COMMISSION'S APPROVAL. THE
COMMISSION SHALL CONTINUE APPROVAL OR SHALL SUSPEND OR REVOKE APPROVAL
BASED UPON COMPLIANCE OF THE ORGANIZATION WITH THE APPROVED SANCTIONING
STANDARDS AND ITS ABILITY TO SUPERVISE MATCHES IN THE STATE. THE
COMMISSION SHALL ACT UPON ANY APPLICATION FOR INCLUSION IN THE LIST IN
PARAGRAPH (B) OF SUBDIVISION ONE OF THIS SECTION WITHIN SIXTY DAYS OF
THE DATE SUCH APPLICATION IS MADE TO THE COMMISSION.
1-B. MIXED MARTIAL ARTS COMPETITION. THE COMMISSION SHALL PROMULGATE
RULES AND REGULATIONS TO ALLOW FOR MIXED MARTIAL ARTS COMPETITIONS TO BE
CONDUCTED, HELD, OR GIVEN WITHIN THE STATE OF NEW YORK AND SHALL ALLOW
FOR LICENSES TO BE APPROVED BY THE COMMISSION FOR SUCH MATCHES OR EXHI-
BITIONS. THE COMMISSION IS AUTHORIZED TO PROMULGATE RULES AND REGU-
LATIONS TO CARRY OUT THE PROVISIONS OF THIS SUBDIVISION. SUCH RULES AND
REGULATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO, THE ADOPTION OF
UNIFIED RULES OF MIXED MARTIAL ARTS, A LICENSING PROCESS FOR MATCHES AND
EXHIBITIONS, A FEE SCHEDULE FOR SUCH LICENSES, PROCEDURES TO ALLOW FOR
THE PARTICIPATION, PROMOTION, AND ADVANCEMENT OF SUCH EVENTS, THE HEALTH
AND SAFETY OF PARTICIPANTS, AND THE BEST INTERESTS OF MIXED MARTIAL ARTS
AND THE ADOPTION OF RULES AND REGULATIONS FOR LICENSING AND REGULATION
OF ANY AND ALL GYMS, CLUBS, TRAINING CAMPS AND OTHER ORGANIZATIONS THAT
MAINTAIN TRAINING FACILITIES PROVIDING CONTACT SPARRING FOR PERSONS WHO
PREPARE FOR PARTICIPATION IN SUCH PROFESSIONAL COMBATIVE SPORTS OR EXHI-
BITIONS, EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION.
(B) THE COMMISSION IS AUTHORIZED AND DIRECTED TO REQUIRE THAT ALL
SITES WHEREIN PROFESSIONAL COMBATIVE SPORTS ARE CONDUCTED SHALL COMPLY
WITH STATE AND APPLICABLE LOCAL SANITARY CODES APPROPRIATE TO SCHOOL
ATHLETIC FACILITIES.
2. [No combative sport shall be conducted, held or given within the
state of New York, and no licenses may be approved by the commission for
such matches or exhibitions.
3. (a) A person who knowingly advances or profits from a combative
sport activity shall be guilty of a class A misdemeanor, and shall be
guilty of a class E felony if he or she has been convicted in the previ-
ous five years of violating this subdivision.
(b) A person advances a combative sport activity when, acting other
than as a spectator, he or she engages in conduct which materially aids
any combative sport. Such conduct includes but is not limited to conduct
directed toward the creation, establishment or performance of a comba-
tive sport, toward the acquisition or maintenance of premises, parapher-
nalia, equipment or apparatus therefor, toward the solicitation or
inducement of persons to attend or participate therein, toward the actu-
al conduct of the performance thereof, toward the arrangement of any of
its financial or promotional phases, or toward any other phase of a
combative sport. One advances a combative sport activity when, having
substantial proprietary or other authoritative control over premises
being used with his or her knowledge for purposes of a combative sport
activity, he or she permits such to occur or continue or makes no effort
to prevent its occurrence or continuation.
(c) A person profits from a combative sport activity when he or she
accepts or receives money or other property with intent to participate
S. 4209 120
in the proceeds of a combative sport activity, or pursuant to an agree-
ment or understanding with any person whereby he or she participates or
is to participate in the proceeds of a combative sport activity.
(d) Any person who knowingly advances or profits from a combative
sport activity shall also be subject to a civil penalty not to exceed
for the first violation ten thousand dollars or twice the amount of gain
derived therefrom whichever is greater, or for a subsequent violation
twenty thousand dollars or twice the amount of gain derived therefrom
whichever is greater. The attorney general is hereby empowered to
commence judicial proceedings to recover such penalties and to obtain
injunctive relief to enforce the provisions of this section.] PROFES-
SIONAL COMBATIVE SPORTS MATCHES AND EXHIBITIONS AUTHORIZED. NO COMBATIVE
SPORTS MATCH OR EXHIBITION SHALL BE CONDUCTED, HELD OR GIVEN WITHIN THE
STATE EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION AND THE
RULES AND REGULATIONS PROMULGATED BY THE COMMISSION PURSUANT THERETO.
THE COMMISSION SHALL DIRECT A REPRESENTATIVE TO BE PRESENT AT EACH PLACE
WHERE COMBATIVE SPORTS ARE TO BE HELD PURSUANT TO THE PROVISIONS OF THIS
SECTION. SUCH REPRESENTATIVE SHALL ASCERTAIN THE EXACT CONDITIONS
SURROUNDING SUCH MATCH OR EXHIBITION AND MAKE A WRITTEN REPORT OF THE
SAME IN THE MANNER AND FORM PRESCRIBED BY THE COMMISSION. SUCH COMBATIVE
SPORTS MATCHES OR EXHIBITIONS MAY BE HELD IN ANY BUILDING FOR WHICH THE
COMMISSION IN ITS DISCRETION MAY ISSUE A LICENSE. WHERE SUCH MATCH OR
EXHIBITION IS AUTHORIZED TO BE HELD IN A STATE OR CITY OWNED ARMORY, THE
PROVISION OF THE MILITARY LAW IN RESPECT THERETO MUST BE COMPLIED WITH,
BUT NO SUCH MATCH OR EXHIBITION SHALL BE HELD IN A BUILDING WHOLLY USED
FOR RELIGIOUS SERVICES.
3. JURISDICTION OF COMMISSION. (A) THE COMMISSION SHALL HAVE AND HERE-
BY IS VESTED WITH THE SOLE DIRECTION, MANAGEMENT, CONTROL AND JURISDIC-
TION OVER ALL PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHIBITIONS TO BE
CONDUCTED, HELD OR GIVEN WITHIN THE STATE OF NEW YORK AND OVER ALL
LICENSES TO ANY AND ALL PERSONS WHO PARTICIPATE IN SUCH COMBATIVE SPORTS
MATCHES OR EXHIBITIONS AND OVER ANY AND ALL GYMS, CLUBS, TRAINING CAMPS
AND OTHER ORGANIZATIONS THAT MAINTAIN TRAINING FACILITIES PROVIDING
CONTACT SPARRING FOR PERSONS WHO PREPARE FOR PARTICIPATION IN SUCH
PROFESSIONAL COMBATIVE SPORTS OR EXHIBITIONS, EXCEPT AS OTHERWISE
PROVIDED IN THIS SECTION.
(B) THE COMMISSION IS AUTHORIZED AND DIRECTED TO REQUIRE THAT ALL
SITES WHEREIN PROFESSIONAL COMBATIVE SPORTS ARE CONDUCTED SHALL COMPLY
WITH STATE AND APPLICABLE LOCAL SANITARY CODES APPROPRIATE TO SCHOOL
ATHLETIC FACILITIES.
4. ENTITIES REQUIRED TO PROCURE LICENSES; PROFESSIONAL COMBATIVE
SPORTS PARTICIPANTS DEFINED. EXCEPT AS OTHERWISE PROVIDED IN SUBDIVISION
SIX OF THIS SECTION, ALL CORPORATIONS, PERSONS, LIMITED LIABILITY COMPA-
NIES, REFEREES, JUDGES, CORPORATION TREASURERS, PROFESSIONAL COMBATIVE
SPORTS PARTICIPANTS, THEIR MANAGERS, PROMOTERS, TRAINERS AND CHIEF
SECONDS SHALL BE LICENSED BY THE COMMISSION, AND NO SUCH ENTITY SHALL BE
PERMITTED TO PARTICIPATE, EITHER DIRECTLY OR INDIRECTLY, IN ANY PROFES-
SIONAL COMBATIVE SPORTS MATCH OR EXHIBITION, OR THE HOLDING THEREOF,
UNLESS SUCH ENTITY SHALL HAVE FIRST PROCURED A LICENSE FROM THE COMMIS-
SION. THE COMMISSION SHALL ESTABLISH BY RULE AND REGULATION LICENSING
STANDARDS FOR REFEREES, JUDGES, MANAGERS, PROMOTERS, TRAINERS AND CHIEF
SECONDS. ANY MATCH OR EXHIBITION CONFORMING TO THE RULES, REGULATIONS
AND REQUIREMENTS OF THIS SECTION SHALL BE DEEMED TO BE A PROFESSIONAL
COMBATIVE SPORTS MATCH OR EXHIBITION.
5. LICENSE TO ENTITIES. (A) THE COMMISSION MAY, IN ITS DISCRETION,
ISSUE A LICENSE TO CONDUCT OR HOLD PROFESSIONAL COMBATIVE SPORTS MATCHES
S. 4209 121
OR EXHIBITIONS, SUBJECT TO THE PROVISIONS HEREOF, TO ANY PERSON, CORPO-
RATION OR LIMITED LIABILITY COMPANY DULY INCORPORATED OR FORMED, HEREIN-
AFTER REFERRED TO AS "ENTITY".
(B) A PROSPECTIVE LICENSEE MUST SUBMIT TO THE COMMISSION PROOF THAT IT
CAN FURNISH SUITABLE PREMISES IN WHICH SUCH MATCH OR EXHIBITION IS TO BE
HELD.
(C) UPON WRITTEN APPLICATION AND THE PAYMENT OF A FEE OF FIVE HUNDRED
DOLLARS WHICH MUST ACCOMPANY THE APPLICATION, THE COMMISSION MAY GRANT
TO ANY ENTITY HOLDING A LICENSE ISSUED HEREUNDER, THE PRIVILEGE OF HOLD-
ING SUCH A MATCH OR EXHIBITION ON A SPECIFIED DATE IN OTHER PREMISES, OR
IN ANOTHER LOCATION, THAN THE PREMISES OF LOCATION PREVIOUSLY APPROVED
BY THE COMMISSION, SUBJECT HOWEVER TO APPROVAL OF THE COMMISSION AND THE
RULES AND REGULATIONS OF THE COMMISSION.
(D) ALL PENALTIES IMPOSED AND COLLECTED BY THE COMMISSION FROM ANY
ENTITY LICENSED UNDER THE PROVISIONS OF THIS ACT, WHICH FINES AND PENAL-
TIES ARE IMPOSED AND COLLECTED UNDER THE AUTHORITY HEREBY VESTED SHALL
WITHIN THIRTY DAYS AFTER THE RECEIPT THEREOF BY THE COMMISSION BE PAID
BY THEM INTO THE STATE TREASURY.
6. TEMPORARY WORKING PERMITS FOR PROFESSIONAL COMBATIVE SPORTS PARTIC-
IPANTS, MANAGERS, TRAINERS AND CHIEF SECONDS. THE COMMISSION MAY ISSUE
TEMPORARY WORKING PERMITS TO PROFESSIONAL COMBATIVE SPORTS PARTICIPANTS,
THEIR MANAGERS, TRAINERS AND CHIEF SECONDS. A TEMPORARY WORKING PERMIT
SHALL AUTHORIZE THE EMPLOYMENT OF THE HOLDER OF SUCH PERMIT TO ENGAGE IN
A SINGLE MATCH OR EXHIBITION AT A SPECIFIED TIME AND PLACE. A TEMPORARY
WORKING PERMIT MAY BE ISSUED IF IN THE JUDGMENT OF THE COMMISSION THE
PARTICIPATION OF THE HOLDER THEREOF IN A PROFESSIONAL COMBATIVE SPORTS
MATCH OR EXHIBITION WILL BE CONSISTENT WITH THE PURPOSES AND PROVISIONS
OF THIS SECTION, THE BEST INTERESTS OF COMBATIVE SPORTS GENERALLY, AND
THE PUBLIC INTEREST, CONVENIENCE OR NECESSITY. THE COMMISSION MAY
REQUIRE THAT PROFESSIONAL COMBATIVE SPORTS PARTICIPANTS APPLYING FOR
TEMPORARY WORKING PERMITS UNDERGO A PHYSICAL EXAMINATION, NEUROLOGICAL
OR NEUROPSYCHOLOGICAL TEST OR PROCEDURE, INCLUDING COMPUTED TOMOGRAPHY
OR MEDICALLY EQUIVALENT PROCEDURE. THE FEE FOR SUCH TEMPORARY WORKING
PERMIT SHALL BE TWENTY DOLLARS.
7. LICENSE FEES; TERM OF LICENSES; RENEWALS. EACH APPLICANT FOR A
PROMOTER LICENSE SHALL, BEFORE A LICENSE IS ISSUED BY THE COMMISSION,
PAY TO THE COMMISSION, AN ANNUAL LICENSE FEE AS FOLLOWS: WHERE THE
SEATING CAPACITY IS NOT MORE THAN TWO THOUSAND FIVE HUNDRED, FIVE
HUNDRED DOLLARS; WHERE THE SEATING CAPACITY IS MORE THAN TWO THOUSAND
FIVE HUNDRED BUT NOT MORE THAN FIVE THOUSAND, ONE THOUSAND DOLLARS;
WHERE THE SEATING CAPACITY IS MORE THAN FIVE THOUSAND BUT NOT MORE THAN
FIFTEEN THOUSAND, ONE THOUSAND FIVE HUNDRED DOLLARS; WHERE THE SEATING
CAPACITY IS MORE THAN FIFTEEN THOUSAND BUT NOT MORE THAN TWENTY-FIVE
THOUSAND, TWO THOUSAND FIVE HUNDRED DOLLARS; WHERE THE SEATING CAPACITY
IS MORE THAN TWENTY-FIVE THOUSAND, THREE THOUSAND FIVE HUNDRED DOLLARS;
REFEREE, ONE HUNDRED DOLLARS; JUDGES, ONE HUNDRED DOLLARS; PROFESSIONAL
COMBATIVE SPORTS PARTICIPANTS, FIFTY DOLLARS; MANAGERS, FIFTY DOLLARS;
TRAINERS, FIFTY DOLLARS; AND CHIEF SECONDS, FORTY DOLLARS. EACH LICENSE
OR RENEWAL THEREOF ISSUED PURSUANT TO THIS SUBDIVISION ON OR AFTER OCTO-
BER FIRST SHALL BE EFFECTIVE FOR A LICENSE YEAR EXPIRING ON THE THIRTI-
ETH DAY OF SEPTEMBER FOLLOWING THE DATE OF ITS ISSUANCE. THE ANNUAL
LICENSE FEE PRESCRIBED BY THIS SUBDIVISION SHALL BE THE LICENSE FEE DUE
AND PAYABLE THEREFOR AND SHALL BE PAID IN ADVANCE AT THE TIME APPLICA-
TION IS MADE THEREFOR, AND EACH SUCH LICENSE MAY BE RENEWED FOR PERIODS
OF ONE YEAR UPON THE PAYMENT OF THE ANNUAL LICENSE FEE PRESCRIBED BY
THIS SUBDIVISION. WITHIN THREE YEARS FROM THE DATE OF PAYMENT AND UPON
S. 4209 122
THE AUDIT OF THE COMPTROLLER, THE COMMISSION MAY REFUND ANY FEE, UNFOR-
FEITED POSTED GUARANTEE OR TAX PAID PURSUANT TO THIS SECTION, FOR WHICH
NO LICENSE IS ISSUED OR NO SERVICE RENDERED OR REFUND THAT PORTION OF
THE PAYMENT THAT IS IN EXCESS OF THE AMOUNT PRESCRIBED BY STATUTE.
8. APPLICATION FOR LICENSE; FINGERPRINTS. (A) EVERY APPLICATION FOR A
LICENSE SHALL BE IN WRITING, SHALL BE ADDRESSED TO THE COMMISSION, SHALL
BE SUBSCRIBED BY THE APPLICANT, AND AFFIRMED BY HIM AS TRUE UNDER THE
PENALTIES OF PERJURY, AND SHALL SET FORTH SUCH FACTS AS THE PROVISIONS
HEREOF AND THE RULES AND REGULATIONS OF THE COMMISSION MAY REQUIRE.
(B) WHEN AN APPLICATION IS MADE FOR A LICENSE UNDER THIS SECTION, THE
COMMISSION MAY CAUSE THE FINGERPRINTS OF SUCH APPLICANT, OR IF SUCH
APPLICANT BE A CORPORATION, OF THE OFFICERS OF SUCH CORPORATION, OR IF
SUCH APPLICANT BE A LIMITED LIABILITY COMPANY, THE MANAGER OF SUCH
LIMITED LIABILITY COMPANY TO BE TAKEN IN DUPLICATE. THE APPLICANT SHALL
BE RESPONSIBLE FOR THE COST OF HAVING HIS FINGERPRINTS TAKEN. IF SUCH
FINGERPRINTS ARE TAKEN, ONE COPY SHALL BE TRANSMITTED TO THE DIVISION OF
CRIMINAL JUSTICE SERVICES IN ACCORDANCE WITH THE RULES AND REGULATIONS
OF THE DIVISION OF CRIMINAL JUSTICE SERVICES AND ONE SHALL REMAIN ON
FILE IN THE OFFICE OF THE COMMISSION. NO SUCH FINGERPRINT MAY BE
INSPECTED BY ANY PERSON, OTHER THAN A PEACE OFFICER, EXCEPT ON ORDER OF
A JUDGE OR JUSTICE OF A COURT OF RECORD. THE DIVISION IS HEREBY AUTHOR-
IZED TO TRANSMIT CRIMINAL HISTORY INFORMATION TO THE COMMISSION FOR THE
PURPOSES OF THIS PARAGRAPH. THE INFORMATION OBTAINED BY ANY SUCH FING-
ERPRINT EXAMINATION SHALL BE FOR THE GUIDANCE OF THE COMMISSION IN THE
EXERCISE OF ITS DISCRETION IN GRANTING OR WITHHOLDING THE LICENSE. THE
COMMISSION SHALL PROVIDE SUCH APPLICANT WITH A COPY OF HIS OR HER CRIMI-
NAL HISTORY RECORD, IF ANY, TOGETHER WITH A COPY OF ARTICLE
TWENTY-THREE-A OF THE CORRECTION LAW, AND INFORM SUCH APPLICANT OF HIS
OR HER RIGHT TO SEEK CORRECTION OF ANY INCORRECT INFORMATION CONTAINED
IN SUCH RECORD PURSUANT TO REGULATIONS AND PROCEDURES ESTABLISHED BY THE
DIVISION OF CRIMINAL JUSTICE SERVICES. ALL DETERMINATIONS TO ISSUE,
RENEW, SUSPEND OR REVOKE A LICENSE SHALL BE MADE IN ACCORDANCE WITH
SUBDIVISION SIXTEEN OF SECTION TWO HUNDRED NINETY-SIX OF THE EXECUTIVE
LAW AND ARTICLE TWENTY-THREE-A OF THE CORRECTION LAW.
9. STANDARDS FOR THE ISSUANCE OF LICENSES. (A) IF IN THE JUDGMENT OF
THE COMMISSION THE FINANCIAL RESPONSIBILITY, EXPERIENCE, CHARACTER AND
GENERAL FITNESS OF AN APPLICANT, INCLUDING IN THE CASE OF CORPORATIONS
ITS OFFICERS AND STOCKHOLDERS, ARE SUCH THAT THE PARTICIPATION OF SUCH
APPLICANT WILL BE CONSISTENT WITH THE BEST INTERESTS OF COMBATIVE
SPORTS, THE PURPOSES OF THIS SECTION INCLUDING THE SAFETY OF PROFES-
SIONAL COMBATIVE SPORTS PARTICIPANTS, AND IN THE PUBLIC INTEREST,
CONVENIENCE OR NECESSITY, THE COMMISSION SHALL GRANT A LICENSE IN
ACCORDANCE WITH THE PROVISIONS CONTAINED IN THIS SUBDIVISION.
(B) ANY PROFESSIONAL COMBATIVE SPORTS PARTICIPANT APPLYING FOR A
LICENSE OR RENEWAL OF A LICENSE UNDER THIS SUBDIVISION SHALL UNDERGO A
COMPREHENSIVE PHYSICAL EXAMINATION INCLUDING CLINICAL NEUROLOGICAL AND
NEUROPSYCHOLOGICAL EXAMINATIONS BY A PHYSICIAN APPROVED BY THE COMMIS-
SION. IF, AT THE TIME OF SUCH EXAMINATION, THERE IS ANY INDICATION OF
BRAIN INJURY, OR FOR ANY OTHER REASON THE PHYSICIAN DEEMS IT APPROPRI-
ATE, THE PROFESSIONAL COMBATIVE SPORTS PARTICIPANT SHALL BE REQUIRED TO
UNDERGO FURTHER NEUROLOGICAL AND NEUROPSYCHOLOGICAL EXAMINATIONS BY A
NEUROLOGIST INCLUDING, BUT NOT LIMITED TO, A COMPUTED TOMOGRAPHY OR
MEDICALLY EQUIVALENT PROCEDURE. THE COMMISSION SHALL NOT ISSUE A LICENSE
TO A PROFESSIONAL COMBATIVE SPORTS PARTICIPANT UNTIL SUCH EXAMINATIONS
ARE COMPLETED AND REVIEWED BY THE COMMISSION. THE RESULTS OF ALL SUCH
EXAMINATIONS HEREIN REQUIRED SHALL BECOME A PART OF THE PROFESSIONAL
S. 4209 123
COMBATIVE SPORTS PARTICIPANT'S PERMANENT MEDICAL RECORD AS MAINTAINED BY
THE COMMISSION. THE COST OF ALL SUCH EXAMINATIONS CALLED FOR IN THIS
SUBDIVISION SHALL BE ASSUMED BY THE STATE IF SUCH EXAMINATIONS ARE
PERFORMED BY A PHYSICIAN OR NEUROLOGIST APPROVED BY THE COMMISSION.
(C) ANY PROFESSIONAL COMBATIVE SPORTS PARTICIPANT LICENSED UNDER THIS
CHAPTER SHALL, AS A CONDITION OF LICENSURE, WAIVE RIGHT OF CONFIDENTIAL-
ITY OF MEDICAL RECORDS RELATING TO TREATMENT OF ANY PHYSICAL CONDITION
WHICH RELATES TO HIS ABILITY TO FIGHT. ALL MEDICAL REPORTS SUBMITTED TO,
AND ALL MEDICAL RECORDS OF THE MEDICAL ADVISORY BOARD OR THE COMMISSION
RELATIVE TO THE PHYSICAL EXAMINATION OR CONDITION OF COMBATIVE SPORTS
PARTICIPANTS SHALL BE CONSIDERED CONFIDENTIAL, AND SHALL BE OPEN TO
EXAMINATION ONLY TO THE COMMISSION OR ITS AUTHORIZED REPRESENTATIVE, TO
THE LICENSED PARTICIPANT, MANAGER OR CHIEF SECOND UPON WRITTEN APPLICA-
TION TO EXAMINE SAID RECORDS, OR UPON THE ORDER OF A COURT OF COMPETENT
JURISDICTION IN AN APPROPRIATE CASE.
10. FINANCIAL INTEREST IN PROFESSIONAL COMBATIVE SPORTS PARTICIPANTS
PROHIBITED. NO ENTITY SHALL HAVE, EITHER DIRECTLY OR INDIRECTLY, ANY
FINANCIAL INTEREST IN A PROFESSIONAL COMBATIVE SPORTS PARTICIPANT
COMPETING ON PREMISES OWNED OR LEASED BY THE ENTITY, OR IN WHICH SUCH
ENTITY IS OTHERWISE INTERESTED EXCEPT PURSUANT TO THE SPECIFIC WRITTEN
AUTHORIZATION OF THE COMMISSION.
11. PAYMENTS NOT TO BE MADE BEFORE CONTESTS. NO PROFESSIONAL COMBATIVE
SPORTS PARTICIPANT SHALL BE PAID FOR SERVICES BEFORE THE CONTEST, AND
SHOULD IT BE DETERMINED BY THE COMMISSION THAT SUCH PARTICIPANT DID NOT
GIVE AN HONEST EXHIBITION OF HIS SKILL, SUCH SERVICE SHALL NOT BE PAID
FOR.
12. SHAM OR COLLUSIVE EVENTS. (A) ANY PERSON, INCLUDING ANY CORPO-
RATION AND THE OFFICERS THEREOF, ANY PHYSICIAN, LIMITED LIABILITY COMPA-
NY, REFEREE, JUDGE, PROFESSIONAL COMBATIVE SPORTS PARTICIPANT, MANAGER,
TRAINER OR CHIEF SECOND, WHO SHALL PROMOTE, CONDUCT, GIVE OR PARTICIPATE
IN ANY SHAM OR COLLUSIVE PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBI-
TION, SHALL BE DEPRIVED OF HIS LICENSE BY THE COMMISSION.
(B) NO LICENSED ENTITY SHALL KNOWINGLY ENGAGE IN A COURSE OF CONDUCT
IN WHICH PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHIBITIONS ARE
ARRANGED WHERE ONE PROFESSIONAL COMBATIVE SPORTS PARTICIPANT HAS SKILLS
OR EXPERIENCE SIGNIFICANTLY IN EXCESS OF THE OTHER PROFESSIONAL COMBA-
TIVE SPORTS PARTICIPANT SO THAT A MISMATCH RESULTS WITH THE POTENTIAL OF
PHYSICAL HARM TO THE PROFESSIONAL COMBATIVE SPORTS PARTICIPANT. IF SUCH
ACTION OCCURS, THE COMMISSION MAY EXERCISE ITS POWERS TO DISCIPLINE
UNDER SUBDIVISIONS THIRTEEN AND FOURTEEN OF THIS SECTION, PROVIDED THAT
NOTHING IN THIS SUBDIVISION SHALL AUTHORIZE THE COMMISSION TO INTERVENE
OR PROHIBIT A PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION SOLELY
ON THE BASIS OF THE DIFFERENCE BETWEEN RESPECTIVE PARTICIPANT'S MARTIAL
ARTS DISCIPLINES.
13. IMPOSITION OF PENALTIES FOR VIOLATIONS. ANY ENTITY, LICENSED UNDER
THE PROVISIONS OF THIS SECTION, THAT SHALL KNOWINGLY VIOLATE ANY RULE OR
ORDER OF THE COMMISSION OR ANY PROVISION OF THIS SECTION, IN ADDITION TO
ANY OTHER PENALTY BY LAW PRESCRIBED, SHALL BE LIABLE TO A CIVIL PENALTY
NOT EXCEEDING FIVE THOUSAND DOLLARS TO BE IMPOSED BY THE COMMISSION, TO
BE SUED FOR BY THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF THE
STATE OF NEW YORK IF DIRECTED BY THE COMMISSION. THE AMOUNT OF THE
PENALTY COLLECTED BY THE COMMISSION OR RECOVERED IN ANY SUCH ACTION, OR
PAID TO THE COMMISSION UPON A COMPROMISE AS HEREINAFTER PROVIDED, SHALL
BE TRANSMITTED BY THE DEPARTMENT OF STATE INTO THE STATE TREASURY AND
CREDITED TO THE GENERAL FUND. THE COMMISSION, FOR CAUSE SHOWN, MAY
EXTEND THE TIME FOR THE PAYMENT OF SUCH PENALTY AND, BY COMPROMISE, MAY
S. 4209 124
ACCEPT LESS THAN THE AMOUNT OF SUCH PENALTY AS IMPOSED IN SETTLEMENT
THEREOF.
14. REVOCATION OR SUSPENSION OF LICENSES. (A) ANY LICENSE ISSUED UNDER
THE PROVISIONS OF THIS SECTION MAY BE REVOKED OR SUSPENDED BY THE
COMMISSION FOR THE REASON THEREIN STATED, THAT THE LICENSEE HAS, IN THE
JUDGMENT OF THE COMMISSION, BEEN GUILTY OF AN ACT DETRIMENTAL TO THE
INTERESTS OF COMBATIVE SPORTS GENERALLY OR TO THE PUBLIC INTEREST,
CONVENIENCE OR NECESSITY.
(B) WITHOUT OTHERWISE LIMITING THE DISCRETION OF THE COMMISSION AS
PROVIDED IN THIS SECTION, THE COMMISSION MAY SUSPEND OR REVOKE A LICENSE
OR REFUSE TO RENEW OR ISSUE A LICENSE, IF IT SHALL FIND THAT THE APPLI-
CANT OR PARTICIPANT: (1) HAS BEEN CONVICTED OF A CRIME IN ANY JURISDIC-
TION; (2) IS ASSOCIATING OR CONSORTING WITH ANY PERSON WHO HAS OR
PERSONS WHO HAVE BEEN CONVICTED OF A CRIME OR CRIMES IN ANY JURISDICTION
OR JURISDICTIONS; (3) HAS BEEN GUILTY OF OR ATTEMPTED ANY FRAUD OR
MISREPRESENTATION IN CONNECTION WITH COMBATIVE SPORTS; (4) HAS VIOLATED
OR ATTEMPTED TO VIOLATE ANY LAW WITH RESPECT TO COMBATIVE SPORTS IN ANY
JURISDICTION OR ANY RULE, REGULATION OR ORDER OF THE COMMISSION, OR
SHALL HAVE VIOLATED ANY RULE OF COMBATIVE SPORTS WHICH SHALL HAVE BEEN
APPROVED OR ADOPTED BY THE COMMISSION, OR HAS BEEN GUILTY OF OR ENGAGED
IN SIMILAR, RELATED OR LIKE PRACTICES; OR (5) HAS NOT ACTED IN THE BEST
INTEREST OF MIXED MARTIAL ARTS. ALL DETERMINATIONS TO ISSUE, RENEW,
SUSPEND OR REVOKE A LICENSE SHALL BE MADE IN ACCORDANCE WITH SUBDIVISION
SIXTEEN OF SECTION TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW AND ARTI-
CLE TWENTY-THREE-A OF THE CORRECTION LAW AS APPLICABLE.
(C) NO SUCH PARTICIPANT MAY, UNDER ANY CIRCUMSTANCES, COMPETE OR
APPEAR IN A PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION WITHIN
NINETY DAYS OF HAVING SUFFERED A KNOCKOUT OR TECHNICAL KNOCKOUT IN ANY
SUCH MATCH OR EXHIBITION WITHOUT CLEARANCE BY THE BOARD, OR WITHIN NINE-
TY DAYS OF BEING RENDERED UNCONSCIOUS IN ANY SUCH MATCH OR EXHIBITION
WHERE THERE IS EVIDENCE OF HEAD TRAUMA AS DETERMINED BY THE ATTENDING
COMMISSION PHYSICIAN AND SHALL UNDERGO SUCH EXAMINATIONS AS REQUIRED
UNDER PARAGRAPH (B) OF SUBDIVISION TWENTY OF THIS SECTION. THE PROFES-
SIONAL COMBATIVE SPORTS PARTICIPANT SHALL BE CONSIDERED SUSPENDED FROM
PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHIBITIONS BY THE COMMISSION
AND SHALL FORFEIT HIS LICENSE TO THE COMMISSION DURING SUCH PERIOD AND
SUCH LICENSE SHALL NOT BE RETURNED TO THE PARTICIPANT UNTIL THE PARTIC-
IPANT HAS MET ALL REQUIREMENTS, MEDICAL AND OTHERWISE, FOR REINSTATEMENT
OF SUCH LICENSE. ALL SUCH SUSPENSIONS SHALL BE RECORDED IN THE PARTIC-
IPANT'S LICENSE BY A COMMISSION OFFICIAL.
(D) THE COMMISSION MAY AT ANY TIME SUSPEND, REVOKE OR DENY A PARTIC-
IPANT'S LICENSE OR TEMPORARY WORKING PERMIT FOR MEDICAL REASONS AT THE
RECOMMENDATION OF THE BOARD.
(E) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, IF ANY OTHER STATE
SHALL REVOKE A LICENSEE'S LICENSE TO COMPETE OR APPEAR IN A PROFESSIONAL
COMBATIVE SPORTS MATCH OR EXHIBITION IN THAT STATE BASED ON A KNOWING
AND INTENTIONAL ENGAGEMENT IN ANY PROHIBITED PRACTICES OF SUCH STATE,
THE COMMISSION MAY ACT TO REVOKE ANY LICENSE TO COMPETE OR APPEAR IN A
PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION ISSUED TO SUCH LICEN-
SEE PURSUANT TO THE PROVISIONS OF THIS SECTION.
(F) THE COMMISSION MAY SUSPEND ANY LICENSE IT HAS ISSUED BY A DATED
NOTICE TO THAT EFFECT TO THE SUSPENDED LICENSEE, MAILED OR DELIVERED TO
THE LICENSEE, AND SPECIFYING THE EFFECTIVE DATE AND TERM OF THE SUSPEN-
SION, PROVIDED HOWEVER THAT THE COMMISSION REPRESENTATIVE IN CHARGE OF A
CONTEST OR EXHIBITION MAY THEN AND THERE TEMPORARILY SUSPEND ANY LICENSE
ISSUED BY THE COMMISSION WITHOUT SUCH NOTICE. IN THE EVENT OF A TEMPO-
S. 4209 125
RARY SUSPENSION, THE COMMISSION SHALL MAIL OR DELIVER THE NOTICE TO THE
SUSPENDED LICENSEE WITHIN THREE BUSINESS DAYS AFTER THE TEMPORARY
SUSPENSION. IN EITHER CASE SUCH SUSPENSION MAY BE WITHOUT ANY ADVANCE
HEARING. UPON THE RECEIPT OF SUCH NOTICE OF SUSPENSION, THE SUSPENDED
LICENSEE MAY APPLY TO THE COMMISSION FOR A HEARING ON THE MATTER TO
DETERMINE WHETHER SUCH SUSPENSION SHOULD BE RESCINDED. SUCH APPLICATION
FOR A HEARING MUST BE IN WRITING AND MUST BE RECEIVED BY THE COMMISSION
WITHIN THIRTY DAYS AFTER THE DATE OF NOTICE OF SUSPENSION. THE COMMIS-
SION SHALL HAVE THE AUTHORITY TO REVOKE ANY LICENSE ISSUED BY IT. BEFORE
ANY LICENSE IS SO REVOKED, THE LICENSEE WILL BE OFFERED THE OPPORTUNITY
AT A HEARING HELD BY OR ON BEHALF OF THE COMMISSION TO SHOW CAUSE WHY
THE LICENSE SHOULD NOT BE REVOKED. THE COMMISSION SHALL OFFER THE OPPOR-
TUNITY FOR A HEARING TO AN AFFECTED PERSON BEFORE TAKING ANY FINAL
ACTION NEGATIVELY AFFECTING SUCH PERSON'S INDIVIDUAL PRIVILEGES OR PROP-
ERTY GRANTED BY A LICENSE DULY ISSUED BY THE COMMISSION OR A CONTRACT
APPROVED BY AND FILED WITH THE COMMISSION. IN ALL SUCH HEARINGS, LICEN-
SEES AND OTHER WITNESSES SHALL TESTIFY UNDER OATH OR AFFIRMATION, WHICH
MAY BE ADMINISTERED BY ANY COMMISSIONER OR AUTHORIZED REPRESENTATIVE OF
THE COMMISSION ACTUALLY PRESENT. THE COMMISSION SHALL BE THE SOLE JUDGE
OF THE RELEVANCY AND COMPETENCY OF TESTIMONY AND OTHER EVIDENCE, THE
CREDIBILITY OF WITNESSES, AND THE SUFFICIENCY OF EVIDENCE. HEARINGS MAY
BE CONDUCTED BY REPRESENTATIVES OF THE COMMISSION IN THE DISCRETION OF
THE COMMISSION. IN SUCH CASES, THE COMMISSION REPRESENTATIVES CONDUCTING
THE HEARING SHALL SUBMIT FINDINGS OF FACT AND RECOMMENDATIONS TO THE
COMMISSION, WHICH SHALL NOT BE BINDING ON THE COMMISSION.
15. ADVERTISING MATTER TO STATE ADMISSION PRICE. IT SHALL BE THE DUTY
OF EVERY ENTITY PROMOTING OR CONDUCTING A PROFESSIONAL COMBATIVE SPORTS
MATCH OR EXHIBITION SUBJECT TO THE PROVISIONS OF THIS SECTION TO CAUSE
TO BE INSERTED IN EACH SHOW CARD, BILL, POSTER, NEWSPAPER ADVERTISEMENT
OF ANY PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION GIVEN BY IT,
THE PRICE OF ADMISSION THERETO. VIOLATION OF THE PROVISIONS OF THIS
SUBDIVISION SHALL SUBJECT THE ENTITY TO A FINE OF ONE HUNDRED DOLLARS.
16. TICKETS TO INDICATE PURCHASE PRICE. ALL TICKETS OF ADMISSION TO
ANY SUCH COMBATIVE SPORTS MATCH OR EXHIBITION SHALL BE CONTROLLED BY THE
PROVISIONS OF ARTICLE TWENTY-FIVE OF THE ARTS AND CULTURAL AFFAIRS LAW.
IT SHALL BE UNLAWFUL FOR ANY ENTITY TO ADMIT TO SUCH MATCH OR EXHIBITION
A NUMBER OF PEOPLE GREATER THAN THE SEATING CAPACITY OF THE PLACE WHERE
SUCH MATCH OR EXHIBITION IS HELD. VIOLATION OF THIS SUBDIVISION SHALL BE
A MISDEMEANOR AND SHALL BE PUNISHABLE AS SUCH AND IN ADDITION SHALL
INCUR FORFEITURE OF LICENSE.
17. EQUIPMENT OF BUILDINGS FOR MATCHES OR EXHIBITIONS. ALL BUILDINGS
OR STRUCTURES USED OR INTENDED TO BE USED FOR HOLDING OR GIVING SUCH
PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHIBITIONS SHALL BE PROPERLY
VENTILATED AND PROVIDED WITH FIRE EXITS AND FIRE ESCAPES, AND IN ALL
MANNER CONFORM TO THE LAWS, ORDINANCES AND REGULATIONS PERTAINING TO
BUILDINGS IN THE CITY, TOWN OR VILLAGE WHERE SITUATED.
18. AGE OF PARTICIPANTS AND SPECTATORS. NO PERSON UNDER THE AGE OF
EIGHTEEN YEARS SHALL PARTICIPATE IN ANY PROFESSIONAL COMBATIVE SPORTS
MATCH OR EXHIBITION, AND NO PERSON UNDER SIXTEEN YEARS OF AGE SHALL BE
PERMITTED TO ATTEND AS A SPECTATOR; PROVIDED, HOWEVER, THAT A PERSON
UNDER THE AGE OF SIXTEEN SHALL BE PERMITTED TO ATTEND AS A SPECTATOR IF
ACCOMPANIED BY A PARENT OR GUARDIAN.
19. REGULATION OF CONDUCT OF MATCHES OR EXHIBITIONS. (A) EXCEPT FOR
CHAMPIONSHIP MATCHES, WHICH SHALL NOT BE MORE THAN FIVE ROUNDS, NO
COMBATIVE SPORTS MATCH OR EXHIBITION SHALL BE MORE THAN THREE ROUNDS IN
LENGTH. NO PARTICIPANT SHALL BE ALLOWED TO PARTICIPATE IN MORE THAN
S. 4209 126
THREE MATCHES OR EXHIBITIONS OR COMPETE FOR MORE THAN SIXTY MINUTES
WITHIN SEVENTY-TWO CONSECUTIVE HOURS. NO PARTICIPANT SHALL BE ALLOWED
TO COMPETE IN ANY SUCH MATCH OR EXHIBITION WITHOUT WEARING A MOUTHGUARD
AND A PROTECTIVE GROIN CUP. AT EACH PROFESSIONAL COMBATIVE SPORTS MATCH
OR EXHIBITION, THERE SHALL BE IN ATTENDANCE A DULY LICENSED REFEREE WHO
SHALL DIRECT AND CONTROL THE SAME. BEFORE STARTING SUCH CONTEST THE
REFEREE SHALL ASCERTAIN FROM EACH PARTICIPANT THE NAME OF HIS MANAGER OR
CHIEF SECOND, AND SHALL HOLD SUCH MANAGER OR CHIEF SECOND RESPONSIBLE
FOR THE CONDUCT OF HIS ASSISTANT SECONDS DURING THE PROGRESS OF THE
MATCH OR EXHIBITION. THE COMMISSION SHALL HAVE THE POWER IN ITS
DISCRETION TO DECLARE FORFEITED ANY PRIZE, REMUNERATION OR PURSE, OR ANY
PART THEREOF, BELONGING TO THE PARTICIPANTS OR ONE OF THEM, OR THE SHARE
THEREOF OF ANY MANAGER OR CHIEF SECOND IF IN ITS JUDGMENT, SUCH PARTIC-
IPANT OR PARTICIPANTS ARE NOT HONESTLY COMPETING OR THE PARTICIPANT OR
MANAGER OR CHIEF SECOND OF A PARTICIPANT, AS THE CASE MAY BE, HAS
COMMITTED AN ACT IN THE PREMISES IN VIOLATION OF ANY RULE, ORDER OR
REGULATION OF THE COMMISSION. THE AMOUNT SO FORFEITED SHALL BE PAID
WITHIN FORTY-EIGHT HOURS TO THE COMMISSION. THERE SHALL ALSO BE IN
ATTENDANCE, THREE DULY LICENSED JUDGES WHO SHALL AT THE TERMINATION OF
EACH SUCH COMBATIVE SPORTS MATCH OR EXHIBITION RENDER THEIR DECISION.
THE WINNER OF SUCH MATCH OR EXHIBITION SHALL BE DETERMINED IN ACCORDANCE
WITH A SCORING SYSTEM PRESCRIBED BY THE COMMISSION. PROVIDED, HOWEVER,
THAT A PARTICIPANT MAY TERMINATE THE CONTEST BY SIGNALLING TO THE REFER-
EE THAT SUCH PARTICIPANT SUBMITS TO THE OPPONENT.
(B) THE COMMISSION MAY BY RULE, REGULATION OR ORDER, REQUIRE THE PRES-
ENCE OF ANY MEDICAL EQUIPMENT AND PERSONNEL AT EACH PROFESSIONAL COMBA-
TIVE SPORTS MATCH OR EXHIBITION AS IS NECESSARY OR BENEFICIAL FOR THE
SAFETY AND PROTECTION OF THE CONTESTANTS; AND MAY ALSO REQUIRE THE PRES-
ENCE OF AN AMBULANCE OR OTHER APPARATUS AT THE SITE OF ANY SUCH MATCH OR
EXHIBITION OR THE PROMULGATION OF AN EMERGENCY MEDICAL PLAN IN LIEU
THEREOF.
(C) THE COMMISSION SHALL PRESCRIBE BY RULE OR REGULATION THE RESPONSI-
BILITIES OF MANAGERS, TRAINERS AND CHIEF SECONDS PRIOR TO, DURING AND
AFTER A COMBATIVE SPORTS MATCH OR EXHIBITION IN ORDER TO PROMOTE THE
SAFETY OF THE PARTICIPANTS AT ALL TIMES.
(D) THE COMMISSION SHALL REQUIRE BY RULE OR REGULATION THAT ANY
PROFESSIONAL COMBATIVE SPORTS PARTICIPANT LICENSED UNDER THIS SECTION
PRESENT TO A DESIGNATED COMMISSION OFFICIAL, BEFORE EACH MATCH OR EXHI-
BITION IN WHICH HE FIGHTS IN THIS STATE, A LICENSE WHICH SHALL INCLUDE
BUT NOT BE LIMITED TO THE FOLLOWING INFORMATION: (1) THE PARTICIPANT'S
NAME, PHOTOGRAPH, SOCIAL SECURITY NUMBER, DATE OF BIRTH, AND OTHER IDEN-
TIFYING INFORMATION; (2) THE PARTICIPANT'S PRIOR MATCH OR EXHIBITION
HISTORY INCLUDING THE DATES, LOCATION, AND DECISION OF SUCH MATCHES OR
EXHIBITIONS; AND (3) THE PARTICIPANT'S MEDICAL HISTORY, RELATING TO ANY
PHYSICAL CONDITION, MEDICAL TEST OR PROCEDURE WHICH RELATES TO HIS ABIL-
ITY TO FIGHT, AND A RECORD OF ALL MEDICAL SUSPENSIONS.
20. EXAMINATION BY PHYSICIAN; COST. (A) ALL PARTICIPANTS MUST BE EXAM-
INED BY A PHYSICIAN DESIGNATED BY THE COMMISSION BEFORE ENTERING THE
RING AND EACH SUCH PHYSICIAN SHALL IMMEDIATELY FILE WITH THE COMMISSION
A WRITTEN REPORT OF SUCH EXAMINATION. THE COST OF ANY SUCH EXAMINATION,
AS PRESCRIBED BY A SCHEDULE OF FEES ESTABLISHED BY THE COMMISSION, SHALL
BE PAID BY THE ENTITY CONDUCTING THE MATCH OR EXHIBITION TO THE COMMIS-
SION, WHICH SHALL THEN PAY THE FEE COVERING SUCH COST TO THE EXAMINING
PHYSICIAN, IN ACCORDANCE WITH THE RULES OF THE COMMISSION.
(B) ANY PROFESSIONAL COMBATIVE SPORTS PARTICIPANT LICENSED OR PERMIT-
TED UNDER THIS SECTION RENDERED UNCONSCIOUS OR SUFFERING HEAD TRAUMA AS
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DETERMINED BY THE ATTENDING PHYSICIAN SHALL BE IMMEDIATELY EXAMINED BY
THE ATTENDING COMMISSION PHYSICIAN AND SHALL BE REQUIRED TO UNDERGO
NEUROLOGICAL AND NEUROPSYCHOLOGICAL EXAMINATIONS BY A NEUROLOGIST
INCLUDING BUT NOT LIMITED TO A COMPUTED TOMOGRAPHY OR MEDICALLY EQUIV-
ALENT PROCEDURE. ANY PARTICIPANT SO INJURED SHALL NOT APPEAR IN ANY
MATCH OR EXHIBITION UNTIL RESULTS OF SUCH EXAMINATIONS ARE REVIEWED BY
THE COMMISSION. THE RESULTS OF ALL SUCH EXAMINATIONS HEREIN REQUIRED
SHALL BECOME A PART OF THE PARTICIPANT'S PERMANENT MEDICAL RECORDS AS
MAINTAINED BY THE COMMISSION AND SHALL BE USED BY THE COMMISSION TO
DETERMINE WHETHER A PARTICIPANT SHALL BE PERMITTED TO APPEAR IN ANY
FUTURE PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION. THE COSTS OF
ALL SUCH EXAMINATIONS CALLED FOR IN THIS PARAGRAPH SHALL BE ASSUMED BY
THE ENTITY OR PROMOTER IF SUCH EXAMINATIONS ARE PERFORMED BY A PHYSICIAN
APPROVED BY THE COMMISSION.
(C) THE COMMISSION MAY AT ANY TIME REQUIRE A LICENSED OR PERMITTED
PARTICIPANT TO UNDERGO A PHYSICAL EXAMINATION, INCLUDING ANY NEUROLOGI-
CAL OR NEUROPSYCHOLOGICAL TEST OR PROCEDURE. THE COST OF SUCH EXAM SHALL
BE ASSUMED BY THE STATE.
21. PHYSICIAN TO BE IN ATTENDANCE; POWERS OF SUCH PHYSICIAN. (A) IT
SHALL BE THE DUTY OF EVERY ENTITY LICENSED TO CONDUCT A COMBATIVE SPORTS
MATCH OR EXHIBITION, TO HAVE IN ATTENDANCE AT EVERY MATCH OR EXHIBITION
AT LEAST ONE PHYSICIAN DESIGNATED BY THE COMMISSION AS THE RULES SHALL
PROVIDE. THE COMMISSION MAY ESTABLISH A SCHEDULE OF FEES TO BE PAID BY
THE LICENSEE TO COVER THE COST OF SUCH ATTENDANCE. SUCH FEES SHALL BE
PAID TO THE COMMISSION, WHICH SHALL THEN PAY SUCH FEES TO THE PHYSICIANS
ENTITLED THERETO, IN ACCORDANCE WITH THE RULES OF THE COMMISSION.
(B) THE PHYSICIAN SHALL TERMINATE ANY PROFESSIONAL COMBATIVE SPORTS
MATCH OR EXHIBITION IF IN THE OPINION OF SUCH PHYSICIAN ANY PARTICIPANT
HAS RECEIVED SEVERE PUNISHMENT OR IS IN DANGER OF SERIOUS PHYSICAL INJU-
RY. IN THE EVENT OF ANY SERIOUS PHYSICAL INJURY, SUCH PHYSICIAN SHALL
IMMEDIATELY RENDER ANY EMERGENCY TREATMENT NECESSARY, RECOMMEND FURTHER
TREATMENT OR HOSPITALIZATION IF REQUIRED, AND FULLY REPORT THE ENTIRE
MATTER TO THE COMMISSION WITHIN TWENTY-FOUR HOURS AND IF NECESSARY,
SUBSEQUENTLY THEREAFTER. SUCH PHYSICIAN MAY ALSO REQUIRE THAT THE
INJURED PARTICIPANT AND HIS MANAGER OR CHIEF SECOND REMAIN IN THE RING
OR ON THE PREMISES OR REPORT TO A HOSPITAL AFTER THE CONTEST FOR SUCH
PERIOD OF TIME AS SUCH PHYSICIAN DEEMS ADVISABLE.
(C) SUCH PHYSICIAN MAY ENTER THE RING AT ANY TIME DURING A PROFES-
SIONAL COMBATIVE SPORTS MATCH OR EXHIBITION AND MAY TERMINATE THE MATCH
OR EXHIBITION IF IN HIS OPINION THE SAME IS NECESSARY TO PREVENT SEVERE
PUNISHMENT OR SERIOUS PHYSICAL INJURY TO A PARTICIPANT.
22. BOND. BEFORE A LICENSE SHALL BE GRANTED TO AN ENTITY TO CONDUCT A
PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION, THE APPLICANT SHALL
EXECUTE AND FILE WITH THE COMPTROLLER A BOND IN AN AMOUNT TO BE DETER-
MINED BY THE COMMISSION, TO BE APPROVED AS TO FORM AND SUFFICIENCY OF
SURETIES THEREON BY THE COMPTROLLER, CONDITIONED FOR THE FAITHFUL
PERFORMANCE BY SUCH ENTITY OF THE PROVISIONS OF THIS SECTION AND THE
RULES AND REGULATIONS OF THE COMMISSION, AND UPON THE FILING AND
APPROVAL OF SUCH BOND THE COMPTROLLER SHALL ISSUE TO SUCH APPLICANT A
CERTIFICATE OF SUCH FILING AND APPROVAL, WHICH SHALL BE BY SUCH APPLI-
CANT FILED IN THE OFFICE OF THE COMMISSION WITH ITS APPLICATION FOR
LICENSE, AND NO SUCH LICENSE SHALL BE ISSUED UNTIL SUCH CERTIFICATE
SHALL BE FILED. IN CASE OF DEFAULT IN SUCH PERFORMANCE, THE COMMISSION
MAY IMPOSE UPON THE DELINQUENT A PENALTY IN THE SUM OF NOT MORE THAN ONE
THOUSAND DOLLARS FOR EACH OFFENSE, WHICH MAY BE RECOVERED BY THE ATTOR-
NEY GENERAL IN THE NAME OF THE PEOPLE OF THE STATE OF NEW YORK IN THE
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SAME MANNER AS OTHER PENALTIES ARE RECOVERED BY LAW; ANY AMOUNT SO
RECOVERED SHALL BE PAID INTO THE TREASURY.
23. BOND FOR PURSES, SALARIES AND OTHER EXPENSES. IN ADDITION TO THE
BOND REQUIRED BY SUBDIVISION TWENTY-TWO OF THIS SECTION, EACH APPLICANT
FOR A LICENSE TO CONDUCT PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHI-
BITIONS SHALL EXECUTE AND FILE WITH THE COMPTROLLER A BOND IN AN AMOUNT
TO BE DETERMINED BY THE COMMISSION TO BE APPROVED AS TO FORM AND SUFFI-
CIENCY OF SURETIES THEREON BY THE COMPTROLLER, CONDITIONED FOR AND GUAR-
ANTEEING THE PAYMENT OF PROFESSIONAL COMBATIVE SPORTS PARTICIPANTS'
PURSES, SALARIES OF CLUB EMPLOYEES LICENSED BY THE COMMISSION, AND THE
LEGITIMATE EXPENSES OF PRINTING TICKETS AND ALL ADVERTISING MATERIAL.
24. DUTY TO PROVIDE INSURANCE FOR LICENSED PROFESSIONAL COMBATIVE
SPORTS PARTICIPANTS. (A) ALL ENTITIES HAVING LICENSES AS PROMOTERS
SHALL CONTINUOUSLY PROVIDE INSURANCE FOR THE PROTECTION OF LICENSED
PROFESSIONAL COMBATIVE SPORTS PARTICIPANTS, APPEARING IN PROFESSIONAL
COMBATIVE SPORTS MATCHES OR EXHIBITIONS. SUCH INSURANCE COVERAGE SHALL
PROVIDE FOR REIMBURSEMENT TO THE LICENSED ATHLETE FOR MEDICAL, SURGICAL
AND HOSPITAL CARE, WITH A MINIMUM LIMIT OF FIFTY THOUSAND DOLLARS FOR
INJURIES SUSTAINED WHILE PARTICIPATING IN ANY PROGRAM OPERATED UNDER THE
CONTROL OF SUCH LICENSED PROMOTER AND FOR A PAYMENT OF ONE HUNDRED THOU-
SAND DOLLARS TO THE ESTATE OF ANY DECEASED ATHLETE WHERE SUCH DEATH IS
OCCASIONED BY INJURIES RECEIVED DURING THE COURSE OF A MATCH OR EXHIBI-
TION IN WHICH SUCH LICENSED ATHLETE PARTICIPATED UNDER THE PROMOTION OR
CONTROL OF ANY LICENSED PROMOTER. THE COMMISSION MAY FROM TIME TO TIME,
IN ITS DISCRETION, INCREASE THE AMOUNT OF SUCH MINIMUM LIMITS.
(B) THE FAILURE TO PAY PREMIUMS ON SUCH INSURANCE AS IS REQUIRED BY
PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE CAUSE FOR THE SUSPENSION OR
THE REVOCATION OF THE LICENSE OF SUCH DEFAULTING PROMOTER.
25. NOTICE OF CONTEST; COLLECTION OF TAX. (A) EVERY ENTITY HOLDING ANY
PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION FOR WHICH AN ADMISSION
FEE IS CHARGED OR RECEIVED, SHALL NOTIFY THE ATHLETIC COMMISSION TEN
DAYS IN ADVANCE OF THE HOLDING OF SUCH CONTEST. ALL TICKETS OF ADMISSION
TO ANY SUCH MATCH OR EXHIBITION SHALL BE PROCURED FROM A PRINTER DULY
AUTHORIZED BY THE STATE ATHLETIC COMMISSION TO PRINT SUCH TICKETS AND
SHALL BEAR CLEARLY UPON THE FACE THEREOF THE PURCHASE PRICE AND LOCATION
OF SAME. AN ENTITY FAILING TO FULLY COMPLY WITH THIS SECTION SHALL BE
SUBJECT TO A PENALTY OF FIVE HUNDRED DOLLARS TO BE COLLECTED BY AND PAID
TO THE DEPARTMENT OF STATE. AN ENTITY IS PROHIBITED FROM OPERATING ANY
MATCHES OR EXHIBITIONS UNTIL ALL PENALTIES DUE PURSUANT TO THIS SUBDIVI-
SION AND TAXES, INTEREST AND PENALTIES DUE PURSUANT TO ARTICLE NINETEEN
OF THE TAX LAW HAVE BEEN PAID.
(B) PURSUANT TO DIRECTION BY THE COMMISSIONER OF TAXATION AND FINANCE,
EMPLOYEES OR OFFICERS OF THE ATHLETIC COMMISSION SHALL ACT AS AGENTS OF
THE COMMISSIONER OF TAXATION AND FINANCE TO COLLECT THE TAX IMPOSED BY
ARTICLE NINETEEN OF THE TAX LAW. THE ATHLETIC COMMISSION SHALL PROVIDE
THE COMMISSIONER OF TAXATION AND FINANCE WITH SUCH INFORMATION AND TECH-
NICAL ASSISTANCE AS MAY BE NECESSARY FOR THE PROPER ADMINISTRATION OF
SUCH TAX.
26. REGULATION OF JUDGES. (A) JUDGES FOR ANY PROFESSIONAL COMBATIVE
SPORTS MATCH OR EXHIBITION UNDER THE JURISDICTION OF THE COMMISSION
SHALL BE SELECTED BY THE COMMISSION FROM A LIST OF QUALIFIED LICENSED
JUDGES MAINTAINED BY THE COMMISSION.
(B) ANY PROFESSIONAL COMBATIVE SPORT PARTICIPANT, MANAGER OR CHIEF
SECOND MAY PROTEST THE ASSIGNMENT OF A JUDGE TO A PROFESSIONAL COMBATIVE
SPORTS MATCH OR EXHIBITION AND THE PROTESTING PROFESSIONAL COMBATIVE
SPORTS PARTICIPANT, MANAGER OR CHIEF SECOND MAY BE HEARD BY THE COMMIS-
S. 4209 129
SION OR ITS DESIGNEE IF SUCH PROTEST IS TIMELY. IF THE PROTEST IS
UNTIMELY IT SHALL BE SUMMARILY REJECTED.
(C) EACH PERSON SEEKING TO BE LICENSED AS A JUDGE BY THE COMMISSION
SHALL BE REQUIRED TO SUBMIT TO OR PROVIDE PROOF OF AN EYE EXAMINATION
AND ANNUALLY THEREAFTER ON THE ANNIVERSARY OF THE ISSUANCE OF THE
LICENSE. EACH PERSON SEEKING TO BE A PROFESSIONAL COMBATIVE SPORTS JUDGE
IN THE STATE SHALL BE CERTIFIED AS HAVING COMPLETED A TRAINING PROGRAM
AS APPROVED BY THE COMMISSION AND SHALL HAVE PASSED A WRITTEN EXAMINA-
TION APPROVED BY THE COMMISSION COVERING ASPECTS OF PROFESSIONAL COMBA-
TIVE SPORTS INCLUDING, BUT NOT LIMITED TO, THE RULES OF THE SPORT, THE
LAW OF THE STATE RELATING TO THE COMMISSION, AND BASIC FIRST AID. THE
COMMISSION SHALL ESTABLISH CONTINUING EDUCATION PROGRAMS TO KEEP LICEN-
SEES CURRENT ON AREAS OF REQUIRED KNOWLEDGE.
(D) EACH PERSON SEEKING A LICENSE TO BE A PROFESSIONAL COMBATIVE
SPORTS JUDGE IN THIS STATE SHALL BE REQUIRED TO FILL OUT A FINANCIAL
QUESTIONNAIRE CERTIFYING UNDER PENALTY OF PERJURY FULL DISCLOSURE OF THE
JUDGE'S FINANCIAL SITUATION ON A QUESTIONNAIRE TO BE PROMULGATED BY THE
COMMISSION. SUCH QUESTIONNAIRE SHALL BE IN A FORM AND MANNER APPROVED BY
THE COMMISSION AND SHALL PROVIDE INFORMATION AS TO AREAS OF ACTUAL OR
POTENTIAL CONFLICTS OF INTEREST AS WELL AS APPEARANCES OF SUCH
CONFLICTS, INCLUDING FINANCIAL RESPONSIBILITY. WITHIN FORTY-EIGHT HOURS
OF ANY PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION, EACH COMBATIVE
SPORTS JUDGE SHALL FILE WITH THE COMMISSION A FINANCIAL DISCLOSURE
STATEMENT IN SUCH FORM AND MANNER AS SHALL BE ACCEPTABLE TO THE COMMIS-
SION.
(E) ONLY A PERSON LICENSED BY THE COMMISSION MAY JUDGE A PROFESSIONAL
COMBATIVE SPORTS MATCH OR EXHIBITION.
27. TRAINING FACILITIES. (A) THE COMMISSION MAY, IN ITS DISCRETION AND
IN ACCORDANCE WITH REGULATIONS ADOPTED BY THE COMMISSION TO PROTECT THE
HEALTH AND SAFETY OF PROFESSIONAL COMBATIVE SPORT PARTICIPANTS IN TRAIN-
ING, ISSUE A LICENSE TO OPERATE A TRAINING FACILITY PROVIDING CONTACT
SPARRING MAINTAINED EITHER EXCLUSIVELY OR IN PART FOR THE USE OF PROFES-
SIONAL COMBATIVE SPORT PARTICIPANTS. THE REGULATIONS OF THE COMMISSION
SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING SUBJECTS TO PROTECT
THE HEALTH AND SAFETY OF PROFESSIONAL COMBATIVE SPORT PARTICIPANTS:
(1) REQUIREMENTS FOR FIRST AID MATERIALS TO BE STORED IN AN ACCESSIBLE
LOCATION ON THE PREMISES AND FOR THE PRESENCE ON THE PREMISES OF A
PERSON TRAINED AND CERTIFIED IN THE USE OF SUCH MATERIALS AND PROCEDURES
FOR CARDIO-PULMONARY RESUSCITATION AT ALL TIMES DURING WHICH THE FACILI-
TY IS OPEN FOR TRAINING PURPOSES;
(2) PROMINENT POSTING ADJACENT TO AN ACCESSIBLE TELEPHONE OF THE TELE-
PHONE NUMBER FOR EMERGENCY MEDICAL SERVICES AT THE NEAREST HOSPITAL;
(3) CLEAN AND SANITARY BATHROOMS, SHOWER ROOMS, LOCKER ROOMS AND FOOD
SERVING AND STORAGE AREAS;
(4) ADEQUATE VENTILATION AND LIGHTING OF ACCESSIBLE AREAS OF THE
TRAINING FACILITY;
(5) ESTABLISHMENT OF A POLICY CONCERNING THE RESTRICTION OF SMOKING IN
TRAINING AREAS, INCLUDING PROVISIONS FOR ITS ENFORCEMENT BY THE FACILITY
OPERATOR;
(6) COMPLIANCE WITH STATE AND LOCAL FIRE ORDINANCES;
(7) INSPECTION AND APPROVAL OF RINGS AS REQUIRED BY SUBDIVISION THIRTY
OF THIS SECTION; AND
(8) ESTABLISHMENT OF A POLICY FOR POSTING ALL COMMISSION LICENSE
SUSPENSIONS AND LICENSE REVOCATIONS RECEIVED FROM THE COMMISSION INCLUD-
ING PROVISIONS FOR ENFORCEMENT OF SUCH SUSPENSIONS AND REVOCATIONS BY
THE FACILITY OPERATOR.
S. 4209 130
(B) A PROSPECTIVE LICENSEE SHALL SUBMIT TO THE COMMISSION PROOF THAT
IT CAN FURNISH SUITABLE FACILITIES IN WHICH THE TRAINING IS TO BE
CONDUCTED, INCLUDING THE MAKING OF SUCH TRAINING FACILITIES AVAILABLE
FOR INSPECTION BY THE COMMISSION AT ANY TIME DURING WHICH TRAINING IS IN
PROGRESS.
28. TEMPORARY TRAINING FACILITIES. ANY TRAINING FACILITY PROVIDING
CONTACT SPARRING ESTABLISHED AND MAINTAINED ON A TEMPORARY BASIS FOR THE
PURPOSE OF PREPARING A PROFESSIONAL COMBATIVE SPORT PARTICIPANT FOR A
SPECIFIC PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION TO BE
CONDUCTED, HELD OR GIVEN WITHIN THE STATE OF NEW YORK SHALL BE EXEMPT
FROM THIS ACT INSOFAR AS IT CONCERNS THE LICENSING OF SUCH FACILITIES
IF, IN THE JUDGMENT OF THE COMMISSION, ESTABLISHMENT AND MAINTENANCE OF
SUCH FACILITY WILL BE CONSISTENT WITH THE PURPOSES AND PROVISIONS OF
THIS CHAPTER, THE BEST INTERESTS OF PROFESSIONAL COMBATIVE SPORTS GENER-
ALLY, AND THE PUBLIC INTEREST, CONVENIENCE OR NECESSITY.
29. WEIGHTS; CLASSES AND RULES. THE WEIGHTS AND CLASSES OF COMBATIVE
SPORT PARTICIPANTS AND THE RULES AND REGULATIONS OF PROFESSIONAL COMBA-
TIVE SPORTS SHALL BE PRESCRIBED BY THE COMMISSION.
30. RINGS OR FIGHTING AREAS. NO PROFESSIONAL COMBATIVE SPORTS MATCH
OR EXHIBITION OR TRAINING ACTIVITY SHALL BE PERMITTED IN ANY RING OR
FIGHTING AREA UNLESS SUCH RING OR FIGHTING AREA HAS BEEN INSPECTED AND
APPROVED BY THE COMMISSION. THE COMMISSION SHALL PRESCRIBE STANDARD
ACCEPTABLE SIZE AND QUALITY REQUIREMENTS FOR RINGS OR FIGHTING AREAS AND
APPURTENANCES THERETO.
31. MISDEMEANOR. ANY ENTITY WHO INTENTIONALLY, DIRECTLY OR INDIRECTLY
CONDUCTS, HOLDS OR GIVES A PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHI-
BITION OR PARTICIPATES EITHER DIRECTLY OR INDIRECTLY IN ANY SUCH MATCH
OR EXHIBITION AS A REFEREE, JUDGE, CORPORATION TREASURER, PROFESSIONAL
COMBATIVE SPORTS PARTICIPANT, MANAGER, PROMOTER, TRAINER OR CHIEF
SECOND, WITHOUT FIRST HAVING PROCURED AN APPROPRIATE LICENSE OR PERMIT
AS PRESCRIBED IN THIS SECTION SHALL BE GUILTY OF A MISDEMEANOR.
S 3. Section 6 of chapter 912 of the laws of 1920 relating to the
regulation of boxing, sparring and wrestling, as amended by chapter 437
of the laws of 2002 and subdivision 1 as designated and subdivision 2 as
added by chapter 673 of the laws of 2003, is amended to read as follows:
S 6. Jurisdiction of commission. 1. The commission shall have and
hereby is vested with the sole direction, management, control and juris-
diction over all such boxing and sparring matches or exhibitions OR
PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHIBITIONS to be conducted,
held or given within the state of New York and over all licenses to any
and all persons who participate in such boxing or sparring matches or
exhibitions OR PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHIBITIONS and
over any and all gyms, clubs, training camps and other organizations
that maintain training facilities providing contact sparring for persons
who prepare for participation in such boxing or sparring matches or
exhibitions OR PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHIBITIONS, and
over the promotion of professional wrestling exhibitions OR PROFESSIONAL
COMBATIVE SPORTS MATCHES OR EXHIBITIONS to the extent provided for in
sections 5, 9, 19, 20, 28-a, 28-b and 33 of this act, except as other-
wise provided in this act.
2. The commission is authorized and directed to require that all sites
wherein boxing, sparring and wrestling matches and exhibitions OR
PROFESSIONAL COMBATIVE SPORTS MATCHES OR EXHIBITIONS are conducted shall
comply with state and applicable local sanitary codes appropriate to
school athletic facilities.
S. 4209 131
S 4. Subdivision 1 of section 451 of the tax law, as amended by
section 1 of part F of chapter 407 of the laws of 1999, is amended to
read as follows:
1. "Gross receipts from ticket sales" shall mean the total gross
receipts of every person from the sale of tickets to any professional or
amateur boxing, sparring or wrestling match or exhibition OR ANY PROFES-
SIONAL COMBATIVE SPORTS MATCH OR EXHIBITION held in this state, and
without any deduction whatsoever for commissions, brokerage, distrib-
ution fees, advertising or any other expenses, charges and recoupments
in respect thereto.
S 5. Section 452 of the tax law, as amended by section 2 of part F of
chapter 407 of the laws of 1999, is amended to read as follows:
S 452. Imposition of tax. On and after October first, nineteen
hundred ninety-nine, a tax is hereby imposed and shall be paid upon the
gross receipts of every person holding any professional or amateur
boxing, PROFESSIONAL COMBATIVE SPORTS, sparring or wrestling match or
exhibition in this state. Such tax shall be imposed on such gross
receipts, exclusive of any federal taxes, as follows:
(a) three percent of gross receipts from ticket sales, except that in
no event shall the tax imposed by this subdivision exceed fifty thousand
dollars for any match or exhibition;
(b) three percent of gross receipts from broadcasting rights, except
that in no event shall the tax imposed by this subdivision exceed fifty
thousand dollars for any match or exhibition.
(C) ON AND AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION, A TAX IS
HEREBY IMPOSED AND SHALL BE PAID UPON THE GROSS RECEIPTS OF EVERY PERSON
HOLDING ANY PROFESSIONAL COMBATIVE SPORTS MATCH OR EXHIBITION IN THIS
STATE. SUCH TAX SHALL BE IMPOSED ON SUCH GROSS RECEIPTS, EXCLUSIVE OF
ANY FEDERAL TAXES, AS FOLLOWS:
(I) EIGHT AND ONE-HALF PERCENT OF GROSS RECEIPTS FROM TICKET SALES;
AND
(II) THREE PERCENT OF GROSS RECEIPTS FROM BROADCASTING RIGHTS, EXCEPT
THAT IN NO EVENT SHALL THE TAX IMPOSED BY THIS PARAGRAPH EXCEED FIFTY
THOUSAND DOLLARS FOR ANY MATCH OR EXHIBITION.
S 6. Paragraph 1 of subdivision (f) of section 1105 of the tax law, as
amended by section 100 of part A of chapter 389 of the laws of 1997, is
amended to read as follows:
(1) Any admission charge where such admission charge is in excess of
ten cents to or for the use of any place of amusement in the state,
except charges for admission to race tracks, boxing, sparring or wrestl-
ing matches or exhibitions, OR PROFESSIONAL MIXED MARTIAL ARTS MATCHES
OR EXHIBITIONS which charges are taxed under any other law of this
state, or dramatic or musical arts performances, or live circus perform-
ances, or motion picture theaters, and except charges to a patron for
admission to, or use of, facilities for sporting activities in which
such patron is to be a participant, such as bowling alleys and swimming
pools. For any person having the permanent use or possession of a box or
seat or a lease or a license, other than a season ticket, for the use of
a box or seat at a place of amusement, the tax shall be upon the amount
for which a similar box or seat is sold for each performance or exhibi-
tion at which the box or seat is used or reserved by the holder, licen-
see or lessee, and shall be paid by the holder, licensee or lessee.
S 7. Paragraph (b) of subdivision 6-c of section 106 of the alcoholic
beverage control law, as added by chapter 254 of the laws of 2001, is
amended to read as follows:
S. 4209 132
(b) The prohibition contained in paragraph (a) of this subdivision,
however, shall not be applied to any professional match or exhibition
which consists of boxing, PROFESSIONAL COMBATIVE SPORTS, sparring, wres-
tling, or martial arts [and which is] THAT ARE excepted from the defi-
nition of the term "combative sport" contained in subdivision one of
section five-a of chapter nine hundred twelve of the laws of nineteen
hundred twenty, as added by chapter fourteen of the laws of nineteen
hundred ninety-seven.
S 8. This act shall take effect on the ninetieth day after it shall
have become a law; provided, however, that effective immediately, the
addition, amendment and/or repeal of any rule or regulation necessary
for the implementation of this act on its effective date is authorized
and directed to be made and completed on or before such effective date.
PART YY
Section 1. Subparagraph (i) of the opening paragraph of section 1210
of the tax law is REPEALED and a new subparagraph (i) is added to read
as follows:
(I) WITH RESPECT TO A CITY OF ONE MILLION OR MORE AND THE FOLLOWING
COUNTIES (1) ANY SUCH CITY HAVING A POPULATION OF ONE MILLION OR MORE IS
HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDI-
NANCES OR RESOLUTIONS IMPOSING SUCH TAXES IN ANY SUCH CITY, AT THE RATE
OF FOUR AND ONE-HALF PERCENT;
(2) THE FOLLOWING COUNTIES THAT IMPOSE TAXES DESCRIBED IN SUBDIVISION
(A) OF THIS SECTION AT THE RATE OF THREE PERCENT AS AUTHORIZED ABOVE IN
THIS PARAGRAPH FOR SUCH COUNTIES ARE HEREBY FURTHER AUTHORIZED AND
EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDINANCES, OR RESOLUTIONS
IMPOSING SUCH TAXES DESCRIBED IN SUBDIVISION (A) OF THIS SECTION AT THE
FOLLOWING ADDITIONAL RATES, IN QUARTER PERCENT INCREMENTS, WHICH RATES
ARE ADDITIONAL TO THE THREE PERCENT RATE AUTHORIZED ABOVE IN THIS PARA-
GRAPH, AND, IN THE CASE OF A COUNTY AUTHORIZED TO IMPOSE MORE THAN ONE
ADDITIONAL RATE, ALSO IN ADDITION TO EACH OTHER, FOR EACH SUCH COUNTY,
PROVIDED THAT (A) THE COUNTY OF ROCKLAND MAY IMPOSE ADDITIONAL RATES OF
FIVE-EIGHTHS PERCENT AND THREE-EIGHTHS PERCENT, IN LIEU OF IMPOSING SUCH
ADDITIONAL RATE IN QUARTER PERCENT INCREMENTS; (B) THE COUNTY OF ONTARIO
MAY IMPOSE ADDITIONAL RATES OF ONE-EIGHTH PERCENT AND THREE-EIGHTHS
PERCENT, IN LIEU OF IMPOSING SUCH ADDITIONAL RATE IN QUARTER PERCENT
INCREMENTS; (C) THREE-QUARTERS PERCENT OF THE ADDITIONAL RATE AUTHORIZED
TO BE IMPOSED BY THE COUNTY OF NASSAU SHALL BE SUBJECT TO THE LIMITATION
SET FORTH IN SECTION TWELVE HUNDRED SIXTY-TWO-E OF THIS ARTICLE:
(A) ONE-QUARTER OF ONE PERCENT - NONE.
(B) ONE-HALF OF ONE PERCENT - CHAUTAUQUA, ONTARIO, SCHENECTADY.
(C) THREE-QUARTERS OF ONE PERCENT - DUTCHESS, JEFFERSON, ORANGE.
(D) ONE PERCENT - ALBANY, BROOME, CATTARAUGUS, CAYUGA, CHEMUNG,
CHENANGO, CLINTON, COLUMBIA, CORTLAND, DELAWARE, ESSEX, FRANKLIN,
FULTON, GENESEE, GREENE, HAMILTON, LEWIS, LIVINGSTON, MADISON, MONROE,
MONTGOMERY, NIAGARA, ONONDAGA, ORLEANS, OSWEGO, OTSEGO, PUTNAM, RENSSE-
LAER, ROCKLAND, ST. LAWRENCE, SCHOHARIE, SCHUYLER, SENECA, STEUBEN,
SUFFOLK, SULLIVAN, TIOGA, TOMPKINS, ULSTER, WAYNE, WYOMING, YATES.
(E) ONE AND ONE-QUARTER PERCENT - HERKIMER, NASSAU.
(F) ONE AND ONE-HALF PERCENT - ALLEGANY.
(G) ONE AND THREE-QUARTERS PERCENT - ERIE, ONEIDA.
S 2. Subparagraph (ii) of the opening paragraph of section 1210 of the
tax law is REPEALED and a new subparagraph (ii) is added to read as
follows:
S. 4209 133
(II) THE FOLLOWING CITIES THAT IMPOSE TAXES DESCRIBED IN SUBDIVISION
(A) OF THIS SECTION AT THE RATE OF ONE AND ONE-HALF PERCENT OR HIGHER AS
AUTHORIZED ABOVE IN THIS PARAGRAPH FOR SUCH CITIES ARE HEREBY FURTHER
AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDINANCES, OR
RESOLUTIONS IMPOSING SUCH TAXES DESCRIBED IN SUBDIVISION (A) OF THIS
SECTION AT THE FOLLOWING ADDITIONAL RATES, IN QUARTER PERCENT INCRE-
MENTS, WHICH RATES ARE ADDITIONAL TO THE ONE AND ONE-HALF PERCENT OR
HIGHER RATES AUTHORIZED ABOVE IN THIS PARAGRAPH AND, IN THE CASE OF A
CITY AUTHORIZED TO IMPOSE MORE THAN ONE ADDITIONAL RATE, ALSO IN ADDI-
TION TO EACH OTHER, FOR EACH SUCH CITY:
(1) ONE-QUARTER OF ONE PERCENT - NONE.
(2) ONE-HALF OF ONE PERCENT - NONE.
(3) THREE-QUARTERS OF ONE PERCENT - NONE.
(4) ONE PERCENT - MOUNT VERNON; YONKERS; OSWEGO, FOR THE PERIOD BEGIN-
NING DECEMBER FIRST, TWO THOUSAND THIRTEEN, AND ENDING NOVEMBER THIRTI-
ETH, TWO THOUSAND FIFTEEN; NEW ROCHELLE, FOR THE PERIOD BEGINNING JANU-
ARY FIRST, TWO THOUSAND THIRTEEN, AND ENDING DECEMBER THIRTY-FIRST, TWO
THOUSAND FIFTEEN; WHITE PLAINS, FOR THE PERIOD BEGINNING SEPTEMBER
FIRST, TWO THOUSAND THIRTEEN, AND ENDING AUGUST THIRTY-FIRST, TWO THOU-
SAND FIFTEEN.
(5) ONE AND ONE-QUARTER PERCENT - NONE.
(6) ONE AND ONE-HALF PERCENT - NONE.
(7) ONE AND THREE-QUARTERS PERCENT - NONE.
S 3. Subparagraph (iii) of the opening paragraph of section 1210 of
the tax law is REPEALED and a new subparagraph (iii) is added to read as
follows:
(III) THE MAXIMUM RATE REFERRED TO IN SECTION TWELVE HUNDRED
TWENTY-FOUR OF THIS ARTICLE SHALL BE CALCULATED WITHOUT REFERENCE TO THE
ADDITIONAL RATES AUTHORIZED FOR COUNTIES, OTHER THAN THE COUNTIES OF
CAYUGA, CORTLAND, FULTON, MADISON, AND OTSEGO IN SUBPARAGRAPH (I) AND
THE CITIES IN SUBPARAGRAPH (II) OF THIS PARAGRAPH.
S 4. Section 1210 of the tax law is amended by adding a new subdivi-
sion (q) to read as follows:
(Q) NOTWITHSTANDING ANY PROVISION OF THIS SECTION OR ANY OTHER LAW, A
COUNTY MAY, BY A MAJORITY VOTE OF ITS GOVERNING BODY, PASS A LOCAL LAW,
ORDINANCE OR RESOLUTION TO IMPOSE THE ADDITIONAL RATE OR RATES OF SUCH
SALES AND COMPENSATING USE TAXES AUTHORIZED BY CLAUSE TWO OF SUBPARA-
GRAPH (I) OF THE OPENING PARAGRAPH OF THIS SECTION FOR A PERIOD NOT TO
EXCEED TWO YEARS. ANY SUCH LOCAL LAW, ORDINANCE, OR RESOLUTION SHALL
ALSO BE SUBJECT TO THE PROVISIONS OF SUBDIVISIONS (D) AND (E) OF THIS
SECTION.
S 5. Section 1210-E of the tax law is REPEALED.
S 6. Subdivisions (d), (e), (f), (g), (h) (i), (j), (k), (l), (m),
(n), (o), (p), (q), (r), (t), (u), (v), (w), (x), (y), (z), (z-1), (aa),
(bb), (cc), (dd), (ee), (ff) and (gg) of section 1224 of the tax law are
REPEALED.
S 7. Section 1224 of the tax law is amended by adding four new subdi-
visions (d),(e), (f), and (g) to read as follows:
(D) FOR PURPOSES OF THIS SECTION, THE TERM "PRIOR RIGHT" SHALL MEAN
THE PREFERENTIAL RIGHT TO IMPOSE ANY TAX DESCRIBED IN SECTIONS TWELVE
HUNDRED TWO AND TWELVE HUNDRED THREE, OR TWELVE HUNDRED TEN AND TWELVE
HUNDRED ELEVEN, OF THIS ARTICLE AND THEREBY TO PREEMPT SUCH TAX AND TO
PRECLUDE ANOTHER MUNICIPAL CORPORATION FROM IMPOSING OR CONTINUING THE
IMPOSITION OF SUCH TAX TO THE EXTENT THAT SUCH RIGHT IS EXERCISED.
HOWEVER, THE RIGHT OF PREEMPTION SHALL ONLY APPLY WITHIN THE TERRITORIAL
LIMITS OF THE TAXING JURISDICTION HAVING THE RIGHT OR PREEMPTION.
S. 4209 134
(E) EACH OF THE FOLLOWING COUNTIES AND CITIES SHALL HAVE THE SOLE
RIGHT TO IMPOSE THE FOLLOWING ADDITIONAL RATE OF SALES AND COMPENSATING
USE TAXES IN EXCESS OF THREE PERCENT THAT SUCH COUNTY OR CITY IS AUTHOR-
IZED TO IMPOSE PURSUANT TO THE AUTHORITY OF SUBDIVISION (A) OF SECTION
TWELVE HUNDRED TEN OF THIS ARTICLE. SUCH ADDITIONAL RATES OF TAX SHALL
NOT BE SUBJECT TO PREEMPTION.
(1) COUNTIES:
(A) ONE-QUARTER OF ONE PERCENT - NONE.
(B) ONE-HALF OF ONE PERCENT - CHAUTAUQUA, ONTARIO, SCHENECTADY.
(C) THREE-QUARTERS OF ONE PERCENT - DUTCHESS, JEFFERSON, ORANGE.
(D) ONE PERCENT - ALBANY, BROOME, CATTARAUGUS, CHEMUNG, CHENANGO,
CLINTON, COLUMBIA, DELAWARE, ESSEX, FRANKLIN, GENESEE, GREENE, HAMILTON,
LEWIS, LIVINGSTON, MONROE, MONTGOMERY, NIAGARA, ONONDAGA, ORLEANS, OTSE-
GO, PUTNAM, RENSSELAER, ROCKLAND, ST. LAWRENCE, SCHOHARIE, SCHUYLER,
SENECA, STEUBEN, SUFFOLK, SULLIVAN, TIOGA, TOMPKINS, ULSTER, WAYNE,
WYOMING, YATES.
(E) ONE AND ONE-QUARTER PERCENT - HERKIMER, NASSAU.
(F) ONE AND ONE-HALF PERCENT - ALLEGANY.
(G) ONE AND THREE-QUARTERS PERCENT - ERIE, ONEIDA.
(2) CITIES:
(A) ONE-QUARTER OF ONE PERCENT - NONE.
(B) ONE-HALF OF ONE PERCENT - NONE.
(C) THREE-QUARTERS OF ONE PERCENT - NONE.
(D) ONE PERCENT - MOUNT VERNON, NEW ROCHELLE, WHITE PLAINS, YONKERS.
(F) EACH OF THE FOLLOWING CITIES IS AUTHORIZED TO PREEMPT THE TAXES
IMPOSED BY THE COUNTY IN WHICH IT IS LOCATED PURSUANT TO THE AUTHORITY
OF SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, TO THE
EXTENT OF ONE-HALF THE MAXIMUM AGGREGATE RATE AUTHORIZED UNDER SECTION
TWELVE HUNDRED TEN OF THIS ARTICLE, INCLUDING THE ADDITIONAL RATE THAT
THE COUNTY IN WHICH SUCH CITY IS LOCATED IS AUTHORIZED TO IMPOSE:
AUBURN, IN CAYUGA COUNTY; CORTLAND, IN CORTLAND COUNTY; GLOVERSVILLE AND
JOHNSTOWN, IN FULTON COUNTY; ONEIDA, IN MADISON COUNTY; ONEONTA, IN
OTSEGO COUNTY. AS OF THE DATE THIS SUBDIVISION TAKES EFFECT, ANY SUCH
PREEMPTION BY SUCH A CITY IN EFFECT ON SUCH DATE SHALL CONTINUE IN FULL
FORCE AND EFFECT UNTIL THE EFFECTIVE DATE OF A LOCAL LAW, ORDINANCE, OR
RESOLUTION ADOPTED OR AMENDED BY THE CITY TO CHANGE SUCH PREEMPTION,
PROVIDED SUCH A CITY'S RATE OF TAX IN EXCESS OF ONE AND ONE-HALF PERCENT
SHALL NOT CONTINUE IN EFFECT IF THE COUNTY IN WHICH IT IS LOCATED DOES
NOT EXTEND ITS ADDITIONAL RATE IN EXCESS OF THREE PERCENT. ANY
PREEMPTION BY SUCH A CITY TO TAKE EFFECT UNDER THIS SUBDIVISION AFTER
THE DATE THIS SUBDIVISION TAKES EFFECT SHALL BE SUBJECT TO THE NOTICE
REQUIREMENTS IN SECTION TWELVE HUNDRED TWENTY-THREE OF THIS SUBPART AND
TO THE OTHER REQUIREMENTS OF THIS ARTICLE.
(G) NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SECTION OR OTHER
LAW, IF THE COUNTY OF DUTCHESS WITHDRAWS FROM THE METROPOLITAN COMMUTER
TRANSPORTATION DISTRICT AND IMPOSES THE ADDITIONAL THREE-EIGHTHS PERCENT
RATE OF TAX, THE NET COLLECTIONS FROM WHICH THE COUNTY HAS SET ASIDE FOR
MASS TRANSPORTATION PURPOSES, AS AUTHORIZED BY SUBPARAGRAPH (IV) OF THE
OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, SUCH
ADDITIONAL THREE-EIGHTHS PERCENT RATE OF TAX SHALL BE IN ADDITION TO ANY
OTHER ADDITIONAL RATE OF TAX SUCH COUNTY IS AUTHORIZED TO IMPOSE AND
SHALL NOT BE SUBJECT TO PREEMPTION AND SUCH COUNTY SHALL NOT INCLUDE
SUCH ADDITIONAL THREE-EIGHTHS PERCENT RATE OF TAX IN DETERMINING ITS
ADDITIONAL RATE OF TAX ON THE AREA OF THE COUNTY OUTSIDE ANY CITY IN THE
COUNTY IMPOSING TAX FOR PURPOSES OF SUBDIVISION (D) OF SECTION TWELVE
HUNDRED SIXTY-TWO OF THIS ARTICLE.
S. 4209 135
S 8. The tax law is amended by adding three new sections 1262-t,
1262-u, and 1262-v to read as follows:
S 1262-T. ONEIDA COUNTY NET COLLECTIONS FROM ADDITIONAL RATE OF TAX.
NET COLLECTIONS FROM AN ADDITIONAL THREE-QUARTERS PERCENT RATE OF ONEIDA
COUNTY'S SALES AND COMPENSATING USE TAXES IMPOSED PURSUANT TO THE
AUTHORITY OF CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF
SECTION TWELVE HUNDRED TEN OF THIS ARTICLE SHALL NOT BE SUBJECT TO ANY
REVENUE DISTRIBUTION AGREEMENT ENTERED INTO BY THE COUNTY AND THE CITIES
IN THE COUNTY UNDER SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO
OF THIS PART.
S 1262-U. CLINTON COUNTY NET COLLECTIONS FROM ADDITIONAL RATE OF TAX.
NET COLLECTIONS FROM ANY ADDITIONAL RATE OF SALES AND COMPENSATING USE
TAXES CLINTON COUNTY IMPOSES PURSUANT TO THE AUTHORITY OF CLAUSE TWO OF
SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN
OF THIS ARTICLE SHALL BE PAID TO THE COUNTY AND THE COUNTY SHALL SET
ASIDE SUCH NET COLLECTIONS AND USE THEM SOLELY FOR COUNTY PURPOSES. SUCH
NET COLLECTIONS SHALL NOT BE SUBJECT TO ANY REVENUE DISTRIBUTION AGREE-
MENT ENTERED INTO BY THE COUNTY AND THE CITY IN THE COUNTY UNDER SUBDI-
VISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THIS PART.
S 1262-V. ONTARIO COUNTY NET COLLECTIONS FROM ADDITIONAL RATE OF TAX.
NOTWITHSTANDING ANY LAW TO THE CONTRARY, AFTER ONTARIO COUNTY ALLOCATES
NET COLLECTIONS FROM ITS ADDITIONAL ONE-EIGHTH OF ONE PERCENT RATE OF
SALES AND COMPENSATING USE TAXES PURSUANT TO THE AUTHORITY OF SECTION
TWELVE HUNDRED SIXTY-TWO-R OF THIS PART, AS ADDED BY CHAPTER THIRTY-SEV-
EN OF THE LAWS OF TWO THOUSAND SIX, NET COLLECTIONS FROM THE COUNTY'S
ADDITIONAL THREE-EIGHTHS OF ONE PERCENT RATE OF SUCH TAXES SHALL BE SET
ASIDE FOR COUNTY PURPOSES AND SHALL NOT BE SUBJECT TO ANY AGREEMENT
ENTERED INTO BY THE COUNTY AND THE CITIES IN THE COUNTY UNDER SUBDIVI-
SION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OR SECTION TWELVE HUNDRED
SIXTY-TWO-R OF THIS PART, AS ADDED BY CHAPTER THIRTY-SEVEN OF THE LAWS
OF TWO THOUSAND SIX.
S 9. Section 1262-s of the tax law, as amended by chapter 328 of the
laws of 2013, is amended to read as follows:
S 1262-s. Disposition of net collections from the additional one-quar-
ter of one percent rate of sales and compensating use taxes in the coun-
ty of Herkimer. Notwithstanding any contrary provision of law, if the
county of Herkimer imposes the additional one-quarter of one percent
rate of sales and compensating use taxes IN EXCESS OF FOUR PERCENT
authorized by [section twelve hundred ten-E] THE OPENING PARAGRAPH OF
SECTION TWELVE HUNDRED TEN of this article [for all or any portion of
the period beginning December first, two thousand seven and ending
November thirtieth, two thousand fifteen], the county shall use all net
collections from such additional one-quarter of one percent rate to pay
the county's expenses for the construction of additional correctional
facilities. The net collections from [the] SUCH additional rate imposed
[pursuant to section twelve hundred ten-E] shall be deposited in a
special fund to be created by such county separate and apart from any
other funds and accounts of the county. Any and all remaining net
collections from such additional tax, after the expenses of such
construction are paid, shall be deposited by the county of Herkimer in
the general fund of such county for any county purpose.
S 10. The tax law is amended by adding a new section 1265 to read as
follows:
S 1265. REFERENCES TO CERTAIN PROVISIONS AUTHORIZING ADDITIONAL RATES
OR TO EXPIRATIONS OF A PERIOD. NOTWITHSTANDING ANY PROVISION OF LAW TO
THE CONTRARY: ANY REFERENCE IN ANY SECTION OF THIS CHAPTER OR OTHER LAW,
S. 4209 136
OR IN ANY LOCAL LAW, ORDINANCE, OR RESOLUTION ADOPTED PURSUANT TO THE
AUTHORITY OF THIS ARTICLE, OR IN ANY AGREEMENT ENTERED INTO BY A COUNTY
AND ALL THE CITIES IN THAT COUNTY UNDER SUBDIVISION (C) OF SECTION
TWELVE HUNDRED SIXTY-TWO OF THIS PART, TO NET COLLECTIONS OR REVENUES
FROM A TAX IMPOSED BY A COUNTY OR CITY PURSUANT TO THE AUTHORITY OF A
CLAUSE, OR TO A SUBCLAUSE OF A CLAUSE, OF SUBPARAGRAPH (I) OR (II) OF
THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE
REPEALED BY SECTION ONE OR TWO OF THE CHAPTER OF THE LAWS OF TWO THOU-
SAND FIFTEEN THAT ADDED THIS SECTION OR TO SECTION TWELVE HUNDRED TEN-E
OF THIS ARTICLE REPEALED BY SECTION FIVE OF SUCH CHAPTER OF THE LAWS OF
TWO THOUSAND FIFTEEN SHALL BE DEEMED TO BE A REFERENCE TO NET
COLLECTIONS OR REVENUES FROM A TAX IMPOSED BY THAT COUNTY OR CITY PURSU-
ANT TO THE AUTHORITY OF THE EQUIVALENT PROVISION OF CLAUSE TWO OF
SUBPARAGRAPH (I) OR TO SUBPARAGRAPH (II) OF THE OPENING PARAGRAPH OF
SUCH SECTION TWELVE HUNDRED TEN AS ADDED BY SUCH SECTION ONE OR TWO OF
SUCH CHAPTER OF THE LAWS OF TWO THOUSAND FIFTEEN.
S 11. Severability. If any provision of this act shall for any reason
be finally adjudged by any court of competent jurisdiction to be inval-
id, such judgment shall not affect, impair, or invalidate the remainder
of this act, but shall be confined in its operation to the provision
directly involved in the controversy in which such judgment shall have
been rendered. It it hereby declared to be the intent of the legislature
that this act would have been enacted even if such invalid provision had
not been included in this act.
S 12. This act shall take effect immediately.
PART ZZ
Section 1. Short title. This act shall be known and may be cited as
the "New York aviation jobs act".
S 2. Paragraph 1 of subdivision (dd) of section 1115 of the tax law,
as added by section 1 of part L of chapter 60 of the laws of 2004, is
amended to read as follows:
(1) Services otherwise taxable under paragraph three of subdivision
(c) of section eleven hundred five or under section eleven hundred ten
of this article, SALES OF GENERAL AVIATION AIRCRAFT, and tangible
personal property purchased and used by the person who sells such
services in performing such services, where such property becomes a
physical component part of the property upon which the services are
performed or where such property is a lubricant applied to aircraft,
shall be exempt from tax under this article where such services are
performed on aircraft.
S 3. The commissioner of taxation and finance, in conjunction with the
commissioner of transportation, shall review and analyze all statistical
data available for the purpose of determining the economic and revenue
impact of the sales and compensating use tax exemption for the sale of
general aviation aircraft enacted by section two of this act. Such
review and analysis shall include, but not be limited to, any increases
in aviation-related employment, aircraft basing, aircraft maintenance
and aircraft hangering within the state. The commissioner shall compile
his or her findings into a report, which shall be submitted, on or
before November 1, 2020, to the governor, the temporary president of the
senate and the speaker of the assembly.
S 4. This act shall take effect April 1, 2016, and shall apply to
sales of general aviation aircraft made and uses occurring on or after
such effective date in accordance with the applicable transitional
S. 4209 137
provisions of sections 1106 and 1107 of the tax law, but shall not apply
to sales occurring after March 31, 2021, and section two of this act
shall expire and be deemed repealed April 1, 2021. Provided, however,
that aircraft subject to exemption pursuant to paragraph 1 of subdivi-
sion (dd) of section 1115 of the tax law, as amended by section two of
this act, shall remain so exempt after the expiration and repeal of
section two of this act, including instances where the aircraft is
subsequently sold or the ownership is transferred or assigned, for the
useful life of the aircraft. Provided, further, that the commissioner of
taxation and finance shall be immediately authorized to adopt and amend
any rules or regulations and to issue any procedure, forms or
instructions necessary to implement section two of this act on its
effective date.
PART AAA
Section 1. Section 1118 of the tax law is amended by adding a new
subdivision 13 to read as follows:
(13) (A) IN RESPECT TO THE USE OF A VESSEL BY THE PURCHASER THEREOF IN
THIS STATE FOR NOT MORE THAN TWENTY DAYS PER CALENDAR YEAR.
(B) IF A VESSEL BROUGHT INTO THIS STATE FOR USE UNDER THIS PARAGRAPH
IS PLACED IN A QUALIFIED FACILITY FOR REPAIRS, ALTERATIONS, REFITTING,
OR MODIFICATIONS AND SUCH REPAIRS, ALTERATIONS, REFITTING, OR MODIFICA-
TIONS ARE SUPPORTED BY WRITTEN DOCUMENTATION, THE TWENTY-DAY PERIOD
SHALL BE TOLLED DURING THE TIME THE VESSEL IS PHYSICALLY IN THE CARE,
CUSTODY, AND CONTROL OF A QUALIFIED FACILITY, INCLUDING THE TIME SPENT
ON SEA TRIALS CONDUCTED BY SUCH FACILITY. THE TWENTY-DAY PERIOD MAY BE
TOLLED ONLY ONCE WITHIN A CALENDAR YEAR WHEN A VESSEL IS PLACED FOR THE
FIRST TIME IN SUCH CALENDAR YEAR IN THE PHYSICAL CARE, CUSTODY, AND
CONTROL OF A QUALIFIED FACILITY; HOWEVER, THE COMMISSIONER MAY GRANT
UPON WRITTEN REQUEST OF THE OWNER OF SUCH VESSEL AN ADDITIONAL TOLLING
OF THE TWENTY-DAY PERIOD FOR PURPOSES OF REPAIRS THAT ARISE FROM A WRIT-
TEN GUARANTEE GIVEN BY SUCH FACILITY, WHICH GUARANTEE COVERS ONLY THOSE
REPAIRS OR MODIFICATIONS MADE DURING THE FIRST TOLLED PERIOD. WITHIN
SEVENTY-TWO HOURS AFTER THE DATE UPON WHICH SUCH FACILITY TOOK
POSSESSION OF THE VESSEL, THE OWNER MUST OBTAIN DOCUMENTATION, IN SUCH
FORM AS THE COMMISSIONER SHALL PRESCRIBE, WHICH STATES THAT THE VESSEL
IS UNDER THE CARE, CUSTODY, AND CONTROL OF A QUALIFIED FACILITY AND THAT
THE OWNER DOES NOT USE THE VESSEL WHILE IN SUCH FACILITY. UPON
COMPLETION OF THE REPAIRS, ALTERATIONS, REFITTING, OR MODIFICATIONS, THE
OWNER MUST OBTAIN FROM SUCH FACILITY WITHIN SEVENTY-TWO HOURS AFTER THE
DATE THE VESSEL IS RELEASED, DOCUMENTATION THAT SHOWS THE DATE OF
RELEASE AND ANY OTHER INFORMATION THE COMMISSIONER MAY REQUIRE. SUCH
FACILITY SHALL MAINTAIN A LOG THAT DOCUMENTS ALL ALTERATIONS, ADDITIONS,
REPAIRS, AND SEA TRIALS DURING THE TIME A VESSEL IS UNDER ITS CARE,
CUSTODY, AND CONTROL. SUCH DOCUMENTATION SHALL BE MAINTAINED BY SUCH
OWNER AND FACILITY FOR AT LEAST THREE YEARS FROM THE DATE SUCH VESSEL IS
RELEASED.
(C) IF A VESSEL IS BROUGHT INTO THE STATE FOR THE SOLE PURPOSE OF
OFFERING IT FOR SALE UNDER A CONTRACT WITH A BROKER OR DEALER REGISTERED
PURSUANT TO SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS ARTICLE, SUCH
VESSEL IS EXCLUSIVELY IN THE CARE, CUSTODY AND CONTROL OF SUCH BROKER OR
DEALER, AND NO PERSON MAKES RECREATIONAL USE OF SUCH VESSEL, THE TWEN-
TY-DAY PERIOD SHALL BE TOLLED DURING THE TIME SUCH VESSEL IS IN THE
CARE, CUSTODY AND CONTROL OF SUCH BROKER OR DEALER.
S. 4209 138
(D) THE MERE STORAGE OF A BOAT AT A QUALIFIED FACILITY DOES NOT QUALI-
FY AS A TAX-EXEMPT USE IN THIS STATE.
(E) AS USED IN THIS SUBDIVISION, "QUALIFIED FACILITY" MEANS A MARINA
OR SIMILAR FACILITY WITHIN THE STATE THAT:
(I) IS LOCATED ON A NAVIGABLE BODY OF WATER;
(II) HAS PIERS AND STORAGE FACILITIES TO PROVIDE BERTHING OF VESSELS
IN ITS CARE, CUSTODY, AND CONTROL; AND
(III) HAS NECESSARY SHOPS AND EQUIPMENT TO PROVIDE REPAIR, ALTERATION,
REFITTING, MODIFICATION OR WARRANTY WORK ON VESSELS.
S 2. This act shall take effect immediately.
PART BBB
Section 1. Section 606 of the tax law is amended by adding a new
subsection (ccc) to read as follows:
(CCC) CREDIT FOR REHABILITATION OF DISTRESSED COMMERCIAL PROPERTIES.
(1) 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 QUALIFIED REHABILITATION EXPENDITURES MADE BY THE TAXPAY-
ER WITH RESPECT TO A QUALIFIED DISTRESSED COMMERCIAL PROPERTY. PROVIDED,
HOWEVER, THE CREDIT SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS.
(2) TAX CREDITS ALLOWED PURSUANT TO THIS SUBSECTION SHALL BE ALLOWED
IN THE TAXABLE YEAR IN WHICH THE PROPERTY IS DEEMED A CERTIFIED REHABIL-
ITATION.
(3) IF THE AMOUNT OF THE 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
APPLIED AGAINST THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS, BUT SHALL NOT
EXCEED TWENTY-FIVE THOUSAND DOLLARS.
(4) (A) THE TERM "QUALIFIED REHABILITATION EXPENDITURE" MEANS, FOR
PURPOSES OF THIS SUBSECTION, ANY AMOUNT PROPERLY CHARGEABLE TO A CAPITAL
ACCOUNT:
(I) IN CONNECTION WITH THE CERTIFIED REHABILITATION OF A QUALIFIED
DISTRESSED COMMERCIAL PROPERTY, AND
(II) FOR PROPERTY FOR WHICH DEPRECIATION WOULD BE ALLOWABLE UNDER
SECTION 168 OF THE INTERNAL REVENUE CODE.
(B) SUCH TERM SHALL NOT INCLUDE (I) THE COST OF ACQUIRING ANY BUILDING
OR INTEREST THEREIN, (II) ANY EXPENDITURE ATTRIBUTABLE TO THE ENLARGE-
MENT OF AN EXISTING BUILDING, OR (III) ANY EXPENDITURE MADE PRIOR TO
JANUARY FIRST, TWO THOUSAND FIFTEEN OR AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY.
(5) THE TERM "CERTIFIED REHABILITATION" MEANS, FOR PURPOSES OF THIS
SUBSECTION, ANY REHABILITATION OF A CERTIFIED DISTRESSED COMMERCIAL
PROPERTY WHICH HAS BEEN APPROVED AND CERTIFIED BY A LOCAL GOVERNMENT AS
BEING COMPLETED, WITH A CERTIFICATE OF OCCUPANCY ISSUED, AND THAT THE
COSTS ARE CONSISTENT WITH THE WORK COMPLETED. SUCH CERTIFICATION SHALL
BE ACCEPTABLE AS PROOF THAT THE EXPENDITURES RELATED TO SUCH REHABILI-
TATION QUALIFY AS QUALIFIED REHABILITATION EXPENDITURES FOR PURPOSES OF
THE CREDIT ALLOWED UNDER PARAGRAPH ONE OF THIS SUBSECTION.
(6) (A) THE TERM "QUALIFIED DISTRESSED COMMERCIAL PROPERTY" MEANS, FOR
PURPOSES OF THIS SUBSECTION, A DISTRESSED COMMERCIAL PROPERTY LOCATED
WITHIN NEW YORK STATE:
(I) WHICH HAS BEEN SUBSTANTIALLY REHABILITATED,
(II) WHICH IS OWNED BY THE TAXPAYER, AND
S. 4209 139
(III) WHICH IS LOCATED WITHIN A DISTRESSED COMMERCIAL AREA, AS IDENTI-
FIED BY EACH LOCALITY THROUGH LOCAL LAW, THAT IS DEEMED AN AREA IN NEED
OF COMMUNITY RENEWAL DUE TO DILAPIDATION AND VACANCIES.
(B) IF THE DISTRESSED COMMERCIAL PROPERTY IS RENTAL PROPERTY, SUCH
PROPERTY SHALL HAVE BEEN MORE THAN THIRTY PERCENT VACANT FOR TWELVE
MONTHS WHILE ACTIVELY MARKETED FOR LEASE.
(C) A BUILDING SHALL BE TREATED AS HAVING BEEN "SUBSTANTIALLY REHABIL-
ITATED" IF THE QUALIFIED REHABILITATION EXPENDITURES IN RELATION TO SUCH
BUILDING TOTAL TEN THOUSAND DOLLARS OR MORE.
(7) (A) IF THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S INTEREST IN THE
QUALIFIED DISTRESSED COMMERCIAL PROPERTY, OR SUCH PROPERTY CEASES TO BE
USED AS A COMMERCIAL PROPERTY OF THE TAXPAYER WITHIN FIVE YEARS OF
RECEIVING THE CREDIT UNDER THIS SUBSECTION, THE TAXPAYER'S TAX IMPOSED
BY THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION OR CESSA-
TION OCCURS SHALL BE INCREASED BY THE RECAPTURE PORTION OF THE CREDIT
ALLOWED UNDER THIS SUBSECTION FOR ALL PRIOR TAXABLE YEARS WITH RESPECT
TO SUCH REHABILITATION.
(B) FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE RECAPTURE
PORTION SHALL BE THE PRODUCT OF THE AMOUNT OF CREDIT CLAIMED BY THE
TAXPAYER MULTIPLIED BY A RATIO, THE NUMERATOR OF WHICH IS EQUAL TO SIXTY
LESS THE NUMBER OF MONTHS THE BUILDING IS OWNED OR USED AS COMMERCIAL
PROPERTY BY THE TAXPAYER AND THE DENOMINATOR OF WHICH IS SIXTY.
(8) ANY EXPENDITURE FOR WHICH A CREDIT IS CLAIMED UNDER THIS
SUBSECTION SHALL NOT BE ELIGIBLE FOR ANY OTHER CREDIT UNDER THIS CHAP-
TER.
S 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xli) to read as
follows:
(XLI) CREDIT FOR REHABILITATION AMOUNT OF CREDIT UNDER
OF DISTRESSED COMMERCIAL PROPERTIES SUBDIVISION FORTY-NINE
UNDER SUBSECTION (CCC) OF SECTION TWO HUNDRED TEN-B
S 3. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:
49. CREDIT FOR REHABILITATION OF DISTRESSED COMMERCIAL PROPERTIES. (1)
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 QUALIFIED REHABILITATION EXPENDITURES MADE BY THE TAXPAY-
ER WITH RESPECT TO A QUALIFIED DISTRESSED COMMERCIAL PROPERTY. PROVIDED,
HOWEVER, THE CREDIT SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS.
(2) TAX CREDITS ALLOWED PURSUANT TO THIS SUBDIVISION SHALL BE ALLOWED
IN THE TAXABLE YEAR IN WHICH THE PROPERTY IS DEEMED A CERTIFIED REHABIL-
ITATION.
(3) 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 AGAINST THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS, BUT SHALL NOT
EXCEED TWENTY-FIVE THOUSAND DOLLARS.
(4) (A) THE TERM "QUALIFIED REHABILITATION EXPENDITURE" MEANS, FOR
PURPOSES OF THIS SUBDIVISION, ANY AMOUNT PROPERLY CHARGEABLE TO A CAPI-
TAL ACCOUNT:
(I) IN CONNECTION WITH THE CERTIFIED REHABILITATION OF A QUALIFIED
COMMERCIAL PROPERTY, AND
(II) FOR PROPERTY FOR WHICH DEPRECIATION WOULD BE ALLOWABLE UNDER
SECTION 168 OF THE INTERNAL REVENUE CODE.
S. 4209 140
(B) SUCH TERM SHALL NOT INCLUDE (I) THE COST OF ACQUIRING ANY BUILDING
OR INTEREST THEREIN, (II) ANY EXPENDITURE ATTRIBUTABLE TO THE ENLARGE-
MENT OF AN EXISTING BUILDING, OR (III) ANY EXPENDITURE MADE PRIOR TO
JANUARY FIRST, TWO THOUSAND FIFTEEN OR AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY.
(5) THE TERM "CERTIFIED REHABILITATION" MEANS, FOR PURPOSES OF THIS
SUBDIVISION, ANY REHABILITATION OF A CERTIFIED DISTRESSED COMMERCIAL
PROPERTY WHICH HAS BEEN APPROVED AND CERTIFIED BY A LOCAL GOVERNMENT AS
BEING COMPLETED, WITH A CERTIFICATE OF OCCUPANCY ISSUED, AND THAT THE
COSTS ARE CONSISTENT WITH THE WORK COMPLETED. SUCH CERTIFICATION SHALL
BE ACCEPTABLE AS PROOF THAT THE EXPENDITURES RELATED TO SUCH REHABILI-
TATION QUALIFY AS QUALIFIED REHABILITATION EXPENDITURES FOR PURPOSES OF
THE CREDIT ALLOWED UNDER PARAGRAPH ONE OF THIS SUBDIVISION.
(6) (A) THE TERM "QUALIFIED DISTRESSED COMMERCIAL PROPERTY" MEANS, FOR
PURPOSES OF THIS SUBDIVISION, A DISTRESSED COMMERCIAL PROPERTY LOCATED
WITHIN NEW YORK STATE:
(I) WHICH HAS BEEN SUBSTANTIALLY REHABILITATED,
(II) WHICH IS OWNED BY THE TAXPAYER, AND
(III) WHICH IS LOCATED WITHIN A DISTRESSED COMMERCIAL AREA, AS IDENTI-
FIED BY EACH LOCALITY THROUGH LOCAL LAW, THAT IS DEEMED AN AREA IN NEED
OF COMMUNITY RENEWAL DUE TO DILAPIDATION AND VACANCIES.
(B) IF THE DISTRESSED COMMERCIAL PROPERTY IS RENTAL PROPERTY, SUCH
PROPERTY SHALL HAVE BEEN MORE THAN THIRTY PERCENT VACANT FOR TWELVE
MONTHS WHILE ACTIVELY MARKETED FOR LEASE.
(C) A BUILDING SHALL BE TREATED AS HAVING BEEN "SUBSTANTIALLY REHABIL-
ITATED" IF THE QUALIFIED REHABILITATION EXPENDITURES IN RELATION TO SUCH
BUILDING TOTAL TEN THOUSAND DOLLARS OR MORE.
(7) (A) IF THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S INTEREST IN THE
QUALIFIED DISTRESSED COMMERCIAL PROPERTY, OR SUCH PROPERTY CEASES TO BE
USED AS A COMMERCIAL PROPERTY OF THE TAXPAYER WITHIN FIVE YEARS OF
RECEIVING THE CREDIT UNDER THIS SUBDIVISION, THE TAXPAYER'S TAX IMPOSED
BY THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION OR CESSA-
TION OCCURS SHALL BE INCREASED BY THE RECAPTURE PORTION OF THE CREDIT
ALLOWED UNDER THIS SUBDIVISION FOR ALL PRIOR TAXABLE YEARS WITH RESPECT
TO SUCH REHABILITATION.
(B) FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE RECAPTURE
PORTION SHALL BE THE PRODUCT OF THE AMOUNT OF CREDIT CLAIMED BY THE
TAXPAYER MULTIPLIED BY A RATIO, THE NUMERATOR OF WHICH IS EQUAL TO SIXTY
LESS THE NUMBER OF MONTHS THE BUILDING IS OWNED OR USED AS COMMERCIAL
PROPERTY BY THE TAXPAYER AND THE DENOMINATOR OF WHICH IS SIXTY.
(8) ANY EXPENDITURE FOR WHICH A CREDIT IS CLAIMED UNDER THIS SUBDIVI-
SION SHALL NOT BE ELIGIBLE FOR ANY OTHER CREDIT UNDER THIS CHAPTER.
S 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2015.
PART CCC
Section 1. Paragraph 1 of subdivision (f) of section 16 of the tax
law, as amended by section 34 of part A of chapter 59 of the laws of
2014, is amended to read as follows:
(1) General. The tax factor shall be, in the case of article nine-A of
this chapter, the amount of tax determined for the taxable year under
paragraph (a) of subdivision one of section two hundred ten of such
article. The tax factor shall be, in the case of article twenty-two of
this chapter, the tax determined for the taxable year under subsections
(a) through (d) of section six hundred one of such article. PROVIDED
S. 4209 141
HOWEVER, TAXPAYERS FILING UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER SHALL
INCLUDE FOR THE PURPOSES OF THE TAX FACTOR ALL BUSINESS INCOME ATTRIBUT-
ABLE TO A QEZE BUSINESS WHICH IS TAXABLE UNDER ARTICLE TWENTY-TWO OF
THIS CHAPTER. The tax factor shall be, in the case of article thirty-
three of this chapter, the larger of the amounts of tax determined for
the taxable year under paragraphs one and three of subdivision (a) of
section fifteen hundred two of such article.
S 2. This act shall take effect immediately.
PART DDD
Section 1. Paragraph 1 of subdivision (c) of section 1105 of the tax
law, as amended by chapter 583 of the laws of 2011, is amended to read
as follows:
(1) The furnishing of information by printed, mimeographed or multi-
graphed matter or by duplicating written or printed matter in any other
manner, including the services of collecting, compiling or analyzing
information of any kind or nature and furnishing reports thereof to
other persons, but excluding the furnishing of information which is
personal or individual in nature and which is not or may not be substan-
tially incorporated in reports furnished to other persons, and excluding
the services of advertising or other agents, or other persons acting in
a representative capacity, and information services used by newspapers,
electronic news services, radio broadcasters and television broadcasters
in the collection and dissemination of news, and excluding meteorologi-
cal services, AND EXCLUDING THE SALE OF AN ABSTRACT OF TITLE TO REAL
PROPERTY TO BE USED FOR AGRICULTURAL PURPOSES TO EITHER A PROSPECTIVE
PURCHASER OF REAL PROPERTY OR TO AN ATTORNEY REPRESENTING A PROSPECTIVE
PURCHASER.
S 2. This act shall take effect immediately.
PART EEE
Section 1. Subdivision (a) of section 1115 of the tax law is amended
by adding a new paragraph 44 to read as follows:
(44) SCHOOL BUSES AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED
FORTY-TWO OF THE VEHICLE AND TRAFFIC LAW, AND PARTS, EQUIPMENT, LUBRI-
CANTS AND FUEL PURCHASED AND USED IN THEIR OPERATION.
S 2. This act shall take effect on the first day of a quarterly sales
tax period, as set forth in subdivision (b) of section 1136 of the tax
law, next succeeding April 1, 2018. Provided, however, that the commis-
sioner of taxation and finance may take any action necessary for the
timely implementation of this act on or before the date on which it
shall have become a law.
PART FFF
Section 1. Subdivision (a) of section 1115 of the tax law is amended
by adding a new paragraph 44 to read as follows:
(44) ENERGY EFFICIENT TANGIBLE PERSONAL PROPERTY OF WHATEVER NATURE
FOR USE OR CONSUMPTION DIRECTLY AND EXCLUSIVELY: (I) IN THE PRODUCTION
OF SNOW; (II) IN THE UPHILL TRANSPORTATION OF SKIERS; OR (III) IN THE
GROOMING AND MAINTENANCE OF SNOW BY ANY PERSON ENGAGED IN THE BUSINESS
OF OPERATING A RECREATIONAL FACILITY FOR SKIING.
S 2. Section 1115 of the tax law is amended by adding a new subdivi-
sion (jj) to read as follows:
S. 4209 142
(JJ) FUEL, GAS, ELECTRICITY AND REFRIGERATION, AND GAS, ELECTRIC AND
REFRIGERATION SERVICE OF WHATEVER NATURE FOR USE OR CONSUMPTION DIRECTLY
AND EXCLUSIVELY IN THE PRODUCTION OF SNOW BY ANY PERSON ENGAGED IN THE
BUSINESS OF OPERATING A RECREATIONAL FACILITY FOR SKIING, SHALL BE
EXEMPT FROM THE TAXES IMPOSED UNDER SUBDIVISIONS (A) AND (B) OF SECTION
ELEVEN HUNDRED FIVE AND THE COMPENSATING USE TAX IMPOSED UNDER SECTION
ELEVEN HUNDRED TEN OF THIS ARTICLE.
S 3. This act shall take effect on the first of July next succeeding
the date on which it shall have become a law.
PART GGG
Section 1. Paragraphs 3 and 4 of subsection (b) of section 800 of the
tax law, paragraph 3 as amended and paragraph 4 as added by section 1 of
part B of chapter 56 of the laws of 2011, are amended and a new para-
graph 5 is added to read as follows:
(3) an interstate agency or public corporation created pursuant to an
agreement or compact with another state or the Dominion of Canada; [or]
(4) [Any] ANY eligible educational institution. An "eligible educa-
tional institution" shall mean any public school district, a board of
cooperative educational services, a public elementary or secondary
school, a school approved pursuant to article eighty-five or eighty-nine
of the education law to serve students with disabilities of school age,
or a nonpublic elementary or secondary school that provides instruction
in grade one or above[.]; OR
(5) ANY COUNTY, TOWN, CITY, VILLAGE OR OTHER POLITICAL SUBDIVISION
EXCEPT A CITY WITH A POPULATION OF ONE MILLION INHABITANTS OR MORE.
S 2. This act shall take effect immediately.
PART HHH
Section 1. Paragraph 4 of subsection (b) of section 800 of the tax
law, as added by section 1 of part B of chapter 56 of the laws of 2011,
is amended to read as follows:
(4) Any eligible educational institution. An "eligible educational
institution" shall mean any public school district, a board of cooper-
ative educational services, a public elementary or secondary school, a
school approved pursuant to article eighty-five or eighty-nine of the
education law to serve students with disabilities of school age, or a
nonpublic elementary or secondary school that provides instruction in
grade one or above, ALL PUBLIC LIBRARY SYSTEMS AS DEFINED IN SUBDIVISION
ONE OF SECTION TWO HUNDRED SEVENTY-TWO OF THE EDUCATION LAW, AND ALL
PUBLIC AND FREE ASSOCIATION LIBRARIES AS SUCH TERMS ARE DEFINED IN
SUBDIVISION TWO OF SECTION TWO HUNDRED FIFTY-THREE OF THE EDUCATION LAW.
S 2. This act shall take effect immediately.
PART III
Section 1. Paragraph 4 of subsection (b) of section 800 of the tax
law, as added by section 1 of part B of chapter 56 of the laws of 2011,
is amended to read as follows:
(4) Any eligible educational institution. An "eligible educational
institution" shall mean any public school district, a board of cooper-
ative educational services, a public elementary or secondary school, a
school approved pursuant to article eighty-five or eighty-nine of the
education law to serve students with disabilities of school OR PRESCHOOL
S. 4209 143
age, or a nonpublic elementary or secondary school that provides
instruction in grade one or above.
S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2016.
PART JJJ
Section 1. Subparagraph (A) of paragraph 2 of subsection (t) of
section 606 of the tax law, as amended by section 1 of part N of chapter
85 of the laws of 2002, is amended to read as follows:
(A) The term "allowable college tuition expenses" shall mean the
amount of qualified college tuition expenses of eligible students paid
by the taxpayer during the taxable year[,]. THE AMOUNT OF QUALIFIED
COLLEGE TUITION EXPENSES SHALL BE limited [to] AS FOLLOWS: FOR TAXABLE
YEARS BEGINNING AFTER TWO THOUSAND AND BEFORE TWO THOUSAND SIXTEEN, ten
thousand dollars for each such student; FOR TAXABLE YEARS BEGINNING IN
TWO THOUSAND SIXTEEN, TWELVE THOUSAND DOLLARS FOR EACH STUDENT; FOR
TAXABLE YEARS BEGINNING IN TWO THOUSAND SEVENTEEN, FOURTEEN THOUSAND
DOLLARS FOR EACH STUDENT; FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND
EIGHTEEN, SIXTEEN THOUSAND DOLLARS FOR EACH STUDENT; FOR TAXABLE YEARS
BEGINNING IN TWO THOUSAND NINETEEN, EIGHTEEN THOUSAND DOLLARS FOR EACH
STUDENT; AND FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND NINETEEN,
TWENTY THOUSAND DOLLARS PER STUDENT;
S 2. Paragraph 4 of subsection (t) of section 606 of the tax law, as
added by section 1 of part DD of chapter 63 of the laws of 2000, is
amended to read as follows:
(4) Amount of credit. [If allowable college tuition expenses are less
than five thousand dollars, the amount of the credit provided under this
subsection shall be equal to the applicable percentage of the lesser of
allowable college tuition expenses or two hundred dollars. If allowable
college tuition expenses are five thousand dollars or more, the amount
of the credit provided under this subsection shall be equal to the
applicable percentage of the allowable college tuition expenses multi-
plied by four percent.]
THE AMOUNT OF THE CREDIT SHALL BE DETERMINED IN ACCORDANCE WITH THE
FOLLOWING SCHEDULES:
(A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND AND BEFORE TWO
THOUSAND SIXTEEN:
IF ALLOWABLE COLLEGE TUITION THE TAX CREDIT IS EQUAL TO:
EXPENSES ARE:
LESS THAN FIVE THOUSAND DOLLARS THE APPLICABLE PERCENTAGE OF THE
LESSER OF ALLOWABLE COLLEGE TUITION
EXPENSES OR TWO HUNDRED DOLLARS
FIVE THOUSAND DOLLARS OR MORE THE APPLICABLE PERCENTAGE OF
ALLOWABLE COLLEGE TUITION EXPENSES
MULTIPLIED BY FOUR PERCENT
(B) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND SIXTEEN:
IF ALLOWABLE COLLEGE TUITION THE TAX CREDIT IS EQUAL TO:
EXPENSES ARE:
LESS THAN SIX THOUSAND DOLLARS THE LESSER OF ALLOWABLE COLLEGE
TUITION EXPENSES OR TWO HUNDRED
FORTY DOLLARS
SIX THOUSAND DOLLARS OR MORE THE ALLOWABLE COLLEGE TUITION
EXPENSES MULTIPLIED BY FOUR PERCENT
(C) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND SEVENTEEN:
S. 4209 144
IF ALLOWABLE COLLEGE TUITION THE TAX CREDIT IS EQUAL TO:
EXPENSES ARE:
LESS THAN SEVEN THOUSAND DOLLARS THE LESSER OF ALLOWABLE COLLEGE
TUITION EXPENSES OR TWO HUNDRED
EIGHTY DOLLARS
SEVEN THOUSAND DOLLARS OR MORE THE ALLOWABLE COLLEGE TUITION
EXPENSES MULTIPLIED BY FOUR PERCENT
(D) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND EIGHTEEN:
IF ALLOWABLE COLLEGE TUITION THE TAX CREDIT IS EQUAL TO:
EXPENSES ARE:
LESS THAN EIGHT THOUSAND DOLLARS THE LESSER OF ALLOWABLE COLLEGE
TUITION EXPENSES OR THREE HUNDRED
TWENTY DOLLARS
EIGHT THOUSAND DOLLARS OR MORE THE ALLOWABLE COLLEGE TUITION
EXPENSES MULTIPLIED BY FOUR PERCENT
(E) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN:
IF ALLOWABLE COLLEGE TUITION THE TAX CREDIT IS EQUAL TO:
EXPENSES ARE:
LESS THAN NINE THOUSAND DOLLARS THE LESSER OF ALLOWABLE COLLEGE
TUITION EXPENSES OR THREE HUNDRED
SIXTY DOLLARS
NINE THOUSAND DOLLARS OR MORE THE ALLOWABLE COLLEGE TUITION
EXPENSES MULTIPLIED BY FOUR PERCENT
(F) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND NINETEEN:
IF ALLOWABLE COLLEGE TUITION THE TAX CREDIT IS EQUAL TO:
EXPENSES ARE:
LESS THAN TEN THOUSAND DOLLARS THE LESSER OF ALLOWABLE COLLEGE
TUITION EXPENSES OR FOUR HUNDRED
DOLLARS
TEN THOUSAND DOLLARS OR MORE THE ALLOWABLE COLLEGE TUITION
EXPENSES MULTIPLIED BY FOUR PERCENT
Such applicable percentage shall be twenty-five percent for taxable
years beginning in two thousand one, fifty percent for taxable years
beginning in two thousand two, seventy-five percent for taxable years
beginning in two thousand three and one hundred percent for taxable
years beginning after two thousand three.
S 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2016.
PART KKK
Section 1. The tax law is amended by adding a new section 23-a to read
as follows:
S 23-A. ASBESTOS REMEDIATION CREDIT. (A) DEFINITIONS. AS USED IN THIS
SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(1) QUALIFIED STRUCTURE. "QUALIFIED STRUCTURE" SHALL MEAN (I) A BUILD-
ING, PRINCIPALLY USED BY THE TAXPAYER FOR RESIDENTIAL, INDUSTRIAL,
COMMERCIAL, RECREATIONAL OR ENVIRONMENTAL CONSERVATION PURPOSES, AND
(II) WHICH WAS ORIGINALLY PLACED IN SERVICE AT LEAST TWENTY-FIVE YEARS
PRIOR TO THE TAXABLE YEAR IN WHICH THE CREDIT IS CLAIMED.
(2) ELIGIBLE COSTS. "ELIGIBLE COSTS" SHALL MEAN ALL AMOUNTS PROPERLY
CHARGEABLE TO A CAPITAL ACCOUNT, WHICH ARE INCURRED IN DIRECT CONNECTION
TO ASBESTOS REMEDIATION OF A QUALIFIED ASBESTOS PROJECT.
(3) QUALIFIED ASBESTOS PROJECT. "QUALIFIED ASBESTOS PROJECT" SHALL BE
AN ASBESTOS PROJECT AS DEFINED IN SECTION NINE HUNDRED ONE OF THE LABOR
LAW AND UNDERTAKEN BY THE TAXPAYER, ON A QUALIFIED STRUCTURE, AND
S. 4209 145
COMPLETED PURSUANT TO THE APPLICABLE REGULATIONS AT PART FIFTY-SIX OF
TITLE TWELVE OF THE OFFICIAL COMPILATION OF RULES AND REGULATIONS OF THE
STATE.
(B) ASBESTOS REMEDIATION CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
WHO HAS UNDERTAKEN A QUALIFIED ASBESTOS PROJECT ON A QUALIFIED STRUC-
TURE, AND WHO IS 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 (C) OF THIS SECTION.
(2) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE TWENTY PERCENT
OF ALL ELIGIBLE COSTS WHICH ARE INCURRED IN THE TAXABLE YEAR, AS A
RESULT OF ASBESTOS REMEDIATION WITH A COMPLETED QUALIFIED ASBESTOS
PROJECT. THE CREDIT SHALL BE ALLOWED FOR THE TAXABLE YEAR IN WHICH THE
QUALIFIED ASBESTOS PROJECT IS FIRST COMMENCED AND FOR THE NEXT TWO
SUCCEEDING TAXABLE YEARS. THE CREDIT AUTHORIZED PURSUANT TO THIS SECTION
SHALL NOT EXCEED THE TOTAL SUM OF ONE MILLION DOLLARS FOR THE THREE
TAXABLE YEARS ALLOWED AND CLAIMED. THE COSTS, EXPENSES AND OTHER AMOUNTS
FOR WHICH A CREDIT IS ALLOWED AND CLAIMED UNDER THIS SUBDIVISION SHALL
NOT BE USED IN THE CALCULATION OF ANY OTHER CREDIT ALLOWED UNDER THIS
CHAPTER.
(C) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
ARTICLE 9: SECTION 187-T.
ARTICLE 9-A: SECTION 210-B, SUBDIVISION 49.
ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (CCC).
S 2. The tax law is amended by adding a new section 187-t to read as
follows:
S 187-T. ASBESTOS REMEDIATION CREDIT. 1. ALLOWANCE OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN
SECTION TWENTY-THREE-A OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY
THIS ARTICLE. PROVIDED, HOWEVER, THAT THE AMOUNT OF SUCH CREDIT ALLOW-
ABLE AGAINST THE TAX IMPOSED BY SECTION ONE HUNDRED EIGHTY-FOUR OF THIS
ARTICLE SHALL BE THE EXCESS OF THE AMOUNT OF SUCH CREDIT OVER THE AMOUNT
OF ANY CREDIT ALLOWED BY THIS SECTION AGAINST THE TAX IMPOSED BY SECTION
ONE HUNDRED EIGHTY-THREE OF THIS ARTICLE.
2. APPLICATION OF CREDIT. THE CREDIT UNDER THIS SECTION FOR ANY TAXA-
BLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
APPLICABLE MINIMUM TAX PRESCRIBED BY THIS ARTICLE. IF, HOWEVER, THE
AMOUNT OF CREDIT ALLOWABLE 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, THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
S 3. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:
49. ASBESTOS REMEDIATION CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER
WHO HAS UNDERTAKEN A QUALIFIED ASBESTOS PROJECT ON AN EXISTING STRUCTURE
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION TWEN-
TY-THREE-A 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 SUCH YEAR TO LESS
THAN THE HIGHER AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF
SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED-
ITS ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX
TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
S. 4209 146
YEAR 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.
S 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xli) to read as
follows:
(XLI) ASBESTOS REMEDIATION AMOUNT OF CREDIT UNDER
CREDIT UNDER SUBSECTION (CCC) SUBDIVISION FORTY-NINE OF
SECTION TWO HUNDRED TEN-B
S 5. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
(CCC) ASBESTOS REMEDIATION CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
WHO HAS UNDERTAKEN A QUALIFIED ASBESTOS PROJECT ON AN EXISTING STRUCTURE
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION TWEN-
TY-THREE-A 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. This act shall take effect immediately and shall apply to taxable
years commencing on or after January 1, 2016.
PART LLL
Section 1. Subdivision 1 of section 472 of the tax law, as amended by
chapter 629 of the laws of 1996, and as further amended by section 104
of part A of chapter 62 of the laws of 2011, is amended to read as
follows:
1. The commissioner shall prescribe, prepare and furnish stamps of
such denominations and quantities as may be necessary for the payment of
the tax on cigarettes imposed by this article, PLUS THE PAYMENT BY THE
AGENT OF A CONCURRENT EXPENSE ALLOWANCE FOR THE CIGARETTE TAX ENFORCE-
MENT ACCOUNT ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN-QQQQ OF THE
STATE FINANCE LAW OF FOUR CENTS PER STAMP WHICH SHALL BE DEPOSITED
PURSUANT TO SUBDIVISION (C) OF SECTION FOUR HUNDRED EIGHTY-TWO OF THIS
ARTICLE, and may from time to time and as often as he deems advisable
provide for the issuance and exclusive use of stamps of a new design and
forbid the use of stamps of any other design, in the manner and with the
effect provided in section two hundred seventy-four of this chapter. The
commissioner shall make provisions for the sale of such stamps at such
places and at such times as he may deem necessary and may license agents
for such purpose. The commissioner may license dealers in cigarettes,
who maintain separate warehousing facilities for the purpose of receiv-
ing and distributing cigarettes and conducting their business, who have
received commitments from at least two cigarette manufacturers whose
aggregate market share is at least forty percent of the New York state
cigarette market, and importers, exporters and manufacturers of ciga-
rettes, and other persons within or without the state as agents to buy
or affix stamps to be used in paying the tax herein imposed, but an
agent shall at all times have the right to appoint the person in his
employ who is to affix the stamps to any cigarettes under the agent's
S. 4209 147
control. The fee for filing such application for an agent's license
shall be one thousand five hundred dollars, unless such fee has been
paid during the preceding twelve months, in which case, the fee for a
new license shall be one thousand dollars. All of the provisions of
section four hundred eighty OF THIS ARTICLE relating to wholesale deal-
ers' licenses, including the procedure for suspension, revocation,
refusal to license and for hearings, except for paragraphs (c) and (g)
of subdivision one of such section, shall be applicable to agents'
licenses applied for or granted pursuant to this section, as if such
provisions had been set forth in full in this subdivision and had
expressly referred to the applicant for, or the holder of, an agent's
license. Whenever the commissioner shall sell and deliver to any such
agent any such stamps, such agent shall be entitled to receive as
compensation for his services and expenses as such agent in selling or
affixing such stamps, and to retain out of the moneys to be paid by him
for such stamps, a commission on the par value thereof. The commissioner
is hereby authorized to prescribe a schedule of commissions, not exceed-
ing five per centum, allowable to such agent for buying and affixing
such stamps. Such schedule shall be uniform with respect to the differ-
ent types of stamps used, and may be on a graduated scale with respect
to the number of stamps purchased. The commissioner may, in his
discretion, permit an agent to pay for such stamps within thirty days
after the date of purchase and may require any such agent to file with
the department [of taxation and finance] a bond issued by a surety
company approved by the superintendent of financial services as to
solvency and responsibility and authorized to transact business in the
state or other security acceptable to the commissioner, in such amount
as the commissioner may fix, to secure the payment of any sums due from
such agent pursuant to this article. If securities are deposited as
security under this subdivision, such securities shall be kept in the
custody of the commissioner and may be sold by the commissioner if it
becomes necessary so to do in order to recover any sums due from such
agent pursuant to this article, but no such sale shall be had until
after such agent shall have had opportunity to litigate the validity of
any tax if it elects so to do. Upon any such sale, the surplus, if any,
above the sums due under this article shall be returned to such agent.
S 2. Section 482 of the tax law is amended by adding a new subdivision
(c) to read as follows:
(C) FROM THE AMOUNTS RECEIVED PURSUANT TO SUBDIVISION ONE OF SECTION
FOUR HUNDRED SEVENTY-TWO OF THIS ARTICLE, THE COMMISSIONER SHALL DEPOSIT
IN THE CIGARETTE TAX ENFORCEMENT ACCOUNT ESTABLISHED PURSUANT TO SECTION
NINETY-SEVEN-QQQQ OF THE STATE FINANCE LAW THE CONCURRENT EXPENSE ALLOW-
ANCE FOR THE CIGARETTE TAX ENFORCEMENT FUND OF FOUR CENTS PER STAMP.
S 3. The state finance law is amended by adding a new section 97-qqqq
to read as follows:
S 97-QQQQ. CIGARETTE TAX ENFORCEMENT ACCOUNT. 1. THERE IS HEREBY
CREATED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMIS-
SIONER OF TAXATION AND FINANCE AN ACCOUNT OF THE MISCELLANEOUS SPECIAL
REVENUE FUND TO BE KNOWN AS THE "CIGARETTE TAX ENFORCEMENT 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 CIGARETTE TAX ENFORCEMENT ACCOUNT MONIES
RECEIVED FROM THE COMMISSIONER OF TAXATION AND FINANCE FROM THE CONCUR-
RENT EXPENSE ALLOWANCE PAID PURSUANT TO SUBDIVISION ONE OF SECTION FOUR
HUNDRED SEVENTY-TWO OF THE TAX LAW, AND OTHER MONIES APPROPRIATED, CRED-
ITED OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE.
S. 4209 148
3. THE PROCEEDS OF THE CIGARETTE TAX ENFORCEMENT ACCOUNT SHALL BE USED
SOLELY TO ENFORCE (I) THE COLLECTION OF THE CIGARETTE TAX IMPOSED BY
ARTICLE TWENTY OF THE TAX LAW OR (II) THE CIGARETTE MARKETING STANDARDS
ACT, AS ESTABLISHED BY ARTICLE TWENTY-A OF THE TAX LAW.
S 4. Subdivisions (a), (b) and (c) of section 1846 of the tax law, as
amended by chapter 556 of the laws of 2011, are amended to read as
follows:
(a) Whenever a police officer designated in section 1.20 of the crimi-
nal procedure law or a peace officer designated in subdivision four of
section 2.10 of such law, acting pursuant to his or her special duties,
shall discover any cigarettes subject to tax provided by article twenty
of this chapter or by chapter thirteen of title eleven of the adminis-
trative code of the city of New York, and upon which the tax has not
been paid or the stamps not affixed as required by such article or such
chapter thirteen, they are hereby authorized and empowered forthwith to
seize and take possession of such cigarettes, together with any vending
machine or receptacle in which they are held for sale. Such cigarettes,
vending machine or receptacle seized by a police officer or such peace
officer shall be turned over to the commissioner. Such seized ciga-
rettes, vending machine or receptacle, not including money contained in
such vending machine or receptacle, shall be forfeited to the state. The
commissioner may, within a reasonable time thereafter, upon publication
of a notice to such effect for at least five successive days, before the
day of sale, in a newspaper published or circulated in the county where
the seizure was made, sell such forfeited vending machines or recepta-
cles at public sale and pay the proceeds into the state treasury to the
credit of the general fund. Notwithstanding any other provision of this
section, the commissioner may enter into an agreement with any city of
this state which is authorized to impose a tax similar to that imposed
by article twenty of this chapter to provide for the disposition between
the state and any such city of the proceeds from any such sale. All
cigarettes forfeited to the state [shall be destroyed or used for law
enforcement purposes], except [that] cigarettes that violate, or are
suspected of violating, federal trademark laws or import laws shall [not
be used for law enforcement purposes. If the commissioner determines the
cigarettes may not be used for law enforcement purposes], UPON PUBLICA-
TION IN THE STATE REGISTRY, BE AVAILABLE FOR INSPECTION BY THE MANUFAC-
TURER WHO SHALL DETERMINE WHETHER SUCH CIGARETTES ARE OF SALEABLE QUALI-
TY AND SUCH CIGARETTES SHALL BE OFFERED FOR SALE TO SUCH MANUFACTURERS.
ANY CIGARETTES THAT ARE EITHER NOT INSPECTED BY THE MANUFACTURER WITHIN
FIVE DAYS OF THE PUBLICATION IN THE STATE REGISTRY OR ARE NOT PURCHASED
BY THE MANUFACTURER AFTER BEING DETERMINED TO BE OF SALEABLE QUALITY
SHALL, UPON PUBLICATION IN THE STATE REGISTRY, BE OFFERED FOR SALE TO
AGENTS, AS SUCH TERM IS DEFINED IN SUBDIVISION ELEVEN OF SECTION FOUR
HUNDRED SEVENTY OF THIS CHAPTER, TO A PRICE EQUALING TWO DOLLARS AND
TWENTY CENTS PER PACK OF TWENTY CIGARETTES. ANY SUCH CIGARETTES THAT ARE
EITHER NOT SOLD WITHIN A REASONABLE PERIOD OF TIME AFTER BEING OFFERED
FOR SALE TO AGENTS OR DEEMED UNSALEABLE BY THE MANUFACTURER SHALL, UPON
PUBLICATION IN THE STATE REGISTRY, BE DESTROYED OR USED FOR LAW ENFORCE-
MENT PURPOSES. IF THE COMMISSIONER DETERMINES THE CIGARETTES MAY NOT BE
OFFERED FOR SALE TO THE MANUFACTURERS OR AGENTS, OR USED FOR LAW
ENFORCEMENT PURPOSES BECAUSE SUCH CIGARETTES VIOLATE, OR ARE SUSPECTED
OF VIOLATING, FEDERAL TRADEMARK LAWS OR IMPORT LAWS, the commissioner
must, within a reasonable time after the forfeiture of such cigarettes,
upon publication in the state registry, destroy such forfeited ciga-
rettes. The commissioner may, prior to any destruction of cigarettes,
S. 4209 149
permit the true holder of the trademark rights in the cigarettes to
inspect such forfeited cigarettes in order to assist in any investi-
gation regarding such cigarettes. THE REVENUE FROM ALL SALES OF CIGA-
RETTES MADE PURSUANT TO THIS SUBDIVISION SHALL BE DEPOSITED IN THE CIGA-
RETTE TAX ENFORCEMENT ACCOUNT, AS ESTABLISHED IN SECTION 97-QQQQ OF THE
STATE FINANCE LAW.
(b) [In the alternative] PRIOR TO MAKING FORFEITED CIGARETTES AVAIL-
ABLE FOR INSPECTION OR PURCHASE BY THE MANUFACTURER, OFFERING SUCH CIGA-
RETTES FOR SALE TO AGENTS, OR USING SUCH CIGARETTES FOR LAW ENFORCEMENT
PURPOSES IN ACCORDANCE WITH SUBDIVISION (A) OF THIS SECTION, the tax
commission, on reasonable notice by mail or otherwise, may permit the
person from whom said cigarettes were seized to redeem the said ciga-
rettes, and any vending machine or receptacle seized therewith, by the
payment of the tax due, plus a penalty of fifty per centum thereof, plus
interest on the amount of tax due for each month or fraction thereof
after such tax became due (determined without regard to any extension of
time for filing or paying) at the rate applicable under subparagraph
(ii) of paragraph (a) of subdivision one of section four hundred eight-
y-one of this chapter and the costs incurred in such proceeding, which
total payment shall not be less than five dollars; provided, however,
that such seizure and sale or redemption shall not be deemed to relieve
any person from fine or imprisonment provided for in this article for
violation of any provision of article twenty of this chapter.
(c) [In the alternative] AFTER MAKING FORFEITED CIGARETTES AVAILABLE
FOR INSPECTION OR PURCHASE BY THE MANUFACTURER AND OFFERING SUCH CIGA-
RETTES FOR SALE TO AGENTS IN ACCORDANCE WITH SUBDIVISION (A) OF THIS
SECTION, the tax commission may dispose of any cigarettes seized pursu-
ant to this section, except those that violate, or are suspected of
violating, federal trademark laws or import laws, by transferring them
to the department of corrections and community supervision for sale to
or use by inmates in such institutions.
S 5. Subdivision (b) of section 483 of the tax law, as amended by
chapter 860 of the laws of 1987, subparagraph (A) of paragraph 1 and
subparagraph (B) of paragraph 3 as amended by chapter 744 of the laws of
1990, subparagraph (B) of paragraph 1 as amended by chapter 1 of the
laws of 1999 and subparagraph (B) of paragraph 2 as amended by chapter 4
of the laws of 1988, is amended to read as follows:
(b) 1. (A) The term "cost of the agent" shall mean the basic cost of
cigarettes plus the cost of doing business by the agent as evidenced by
the accounting standards and methods regularly employed by said agent in
his determination of costs for the purpose of federal income tax report-
ing for the total operation of his establishment, and must include,
without limitation, labor, including salaries of executives and offi-
cers, rent, depreciation, selling costs, maintenance of equipment,
delivery costs, interest payable, all types of licenses, taxes, insur-
ance and advertising expressed as a percentage and applied to the basic
cost of cigarettes. Any fractional part of a cent in the cost to the
agent per carton of cigarettes shall be rounded off to the next higher
cent. In the case of sales at retail by an agent, the "cost of the
agent" shall be the same as the "cost of the retail dealer". In the case
of sales of cigarettes to a chain store having fifteen or more retail
outlets, excluding vending machine operators, which are delivered to a
central warehouse owned and operated by such chain store and which are
delivered to its retail outlets by the chain store, the "cost of the
agent" shall be presumed to be the basic cost of cigarettes. There shall
S. 4209 150
be determined a separate cost of the agent for sales to wholesale deal-
ers and for sales to retail dealers.
(B) In the absence of the filing with the commissioner of satisfactory
proof of a lesser cost of doing business of the agent making the sale,
the cost of doing business by the agent shall be presumed to be [seven-
eighths of one] TWO AND ONE-QUARTER percent of the basic cost of ciga-
rettes for sales to wholesale dealers plus one cent per package of ten
cigarettes, two cents per package of twenty cigarettes and in the case
of a package containing more than twenty cigarettes, two cents and one-
half of a cent for each five cigarettes in excess of twenty cigarettes,
[one and one-half] FIVE AND THREE-QUARTER percent of the basic cost of
cigarettes for sales to chain stores plus one cent per package of ten
cigarettes, two cents per package of twenty cigarettes and in the case
of a package containing more than twenty cigarettes, two cents and one-
half of a cent for each five cigarettes in excess of twenty cigarettes
and [three and seven-eighths] FIVE AND THREE-QUARTER percent of the
basic cost of cigarettes with respect to sales to retail dealers plus
one cent per package of ten cigarettes, two cents per package of twenty
cigarettes and in the case of a package containing more than twenty
cigarettes, two cents and one-half of a cent for each five cigarettes in
excess of twenty cigarettes and the foregoing cents per pack shall be
included in the "cost of doing business by the agent" referred to in
paragraphs two and three of this subdivision.
2. (A) The term "cost of the wholesale dealer" shall mean the basic
cost of cigarettes plus the cost of doing business by the wholesale
dealer as evidenced by the accounting standards and methods regularly
employed by said wholesale dealer in his determination of costs for the
purpose of federal income tax reporting for the total operation of his
establishment, and must include, without limitation, labor, including
salaries of executives and officers, rent, depreciation, selling costs,
maintenance of equipment, delivery costs, interest payable, all types of
licenses, taxes, insurance and advertising expressed as a percentage and
applied to the basic cost of cigarettes, plus the cost of doing business
by the agent with respect to sales of cigarettes to wholesale dealers.
Any fractional part of a cent in the cost to the wholesale dealer per
carton of cigarettes shall be rounded off to the next higher cent. In
the case of sales at retail by a wholesale dealer, the "cost of the
wholesale dealer" shall be the same as the "cost of the retail dealer".
There shall be determined a separate cost of the wholesale dealer for
sales to chain stores and for sales to retail dealers.
(B) In the absence of the filing with the tax commission of satisfac-
tory proof of a lesser cost of doing business of the wholesale dealer
making the sale, the cost of doing business by the wholesale dealer with
respect to sales to retail dealers shall be presumed to be three AND
ONE-HALF per centum of the basic cost of cigarettes, and with respect to
sales to chain stores, [five-eighths of one] THREE AND ONE-HALF percent
of the basic cost of cigarettes.
3. (A) The term "cost of the retail dealer" shall mean the basic cost
of cigarettes plus the cost of doing business by the retail dealer as
evidenced by the accounting standards and methods regularly employed by
said retail dealer in his determination of costs for the purpose of
federal income tax reporting for the total operation of his establish-
ment, and shall include, without limitation, labor, including salaries
of executives and officers, rent, depreciation, selling costs, mainte-
nance of equipment, delivery costs, interest payable, all types of
licenses, taxes, insurance and advertising expressed as a percentage and
S. 4209 151
applied to the basic cost of cigarettes, plus the cost of doing business
by the agent with respect to sales of cigarettes to retail dealers. Any
fractional part of a cent in the cost to the retail dealer per package
or per carton shall be rounded off to the next higher cent.
(B) In the absence of the filing with the commissioner of taxation and
finance of satisfactory proof of a lesser cost of doing business by the
retail dealer making the sale, the cost of doing business by the retail
dealer shall be presumed to be [seven] EIGHT AND ONE-HALF per centum of
the sum of the basic cost of cigarettes plus the cost of doing business
by the agent with respect to cigarettes sold to retail dealers.
S 6. Section 1814 of the tax law is amended by adding a new subdivi-
sion (j) to read as follows:
(J) REWARDS. (1) NOTWITHSTANDING ANY PROVISION OF LAW, RULE OR REGU-
LATION TO THE CONTRARY, THE COMMISSIONER SHALL ESTABLISH A PROGRAM TO
ALLOW INDIVIDUALS TO SUBMIT A SWORN STATEMENT AFFIRMING THE OBSERVATION
OF A VIOLATION OF ARTICLE TWENTY OF THIS CHAPTER AND, WHERE THE COMMIS-
SIONER DEEMS IT APPROPRIATE, ALLOW FOR A REWARD FOR ANY SUCH SWORN
STATEMENT. WHERE ENFORCEMENT ACTION IS TAKEN PURSUANT TO THIS ARTICLE OR
ARTICLE TWENTY OF THIS CHAPTER BASED UPON A SWORN STATEMENT BY ONE OR
MORE INDIVIDUALS AND WHERE THE COMMISSIONER DETERMINES, IN THE EXERCISE
OF HIS OR HER DISCRETION, THAT SUCH SWORN STATEMENT, EITHER ALONE OR IN
CONJUNCTION WITH THE TESTIMONY OF THE PERSON SUBMITTING SUCH SWORN
STATEMENT CONTRIBUTES TO THE IMPOSITION OF A CIVIL OR CRIMINAL PENALTY
UPON ANY PERSON FOR A VIOLATION OF THIS ARTICLE, OR ARTICLE TWENTY OF
THIS CHAPTER, THE COMMISSIONER SHALL OFFER AS A REWARD TO SUCH INDIVID-
UAL OR INDIVIDUALS AN AMOUNT THAT, IN THE AGGREGATE, IS FIVE DOLLARS. NO
PEACE OFFICER, POLICE OFFICER OR EMPLOYEE OF THE DEPARTMENT, EMPLOYEE OF
ANY COMPANY UNDER CONTRACT WITH THE DEPARTMENT, OR EMPLOYEE OF ANY
GOVERNMENTAL ENTITY THAT, IN CONJUNCTION WITH THE DEPARTMENT, CONDUCTS
ENFORCEMENT ACTIVITY RELATING TO A VIOLATION OF THIS ARTICLE OR ARTICLE
TWENTY OF THIS CHAPTER, SHALL BE ENTITLED TO OBTAIN THE BENEFIT OF ANY
SUCH REWARD WHEN ACTING IN THE DISCHARGE OF HIS OR HER OFFICIAL DUTIES.
(2) ALL REWARDS PAID PURSUANT TO THIS SECTION SHALL BE PAID FROM THE
CIGARETTE TAX ENFORCEMENT ACCOUNT, AS ESTABLISHED IN SECTION 97-QQQQ OF
THE STATE FINANCE LAW.
S 7. Beginning the month immediately following the month in which the
balance in the cigarette tax enforcement account, as established in
section 97-qqqq of the state finance law, there is hereby appropriated
to the division of state police the amount of six million dollars
($6,000,000) from the cigarette tax enforcement account to support ciga-
rette tax, as imposed by article twenty of the tax law, and cigarette
marketing standards act, as established by article twenty-A of the tax
law, enforcement activities. This appropriation may be apportioned to
either the patrol activities or criminal investigation activities
programs of the division of state police, may be transferred or suballo-
cated to any other state agency or public authority for their costs
associated with the enforcement of the cigarette tax or the cigarette
marketing standards act, and may be used to contract with local enforce-
ment agencies for cigarette tax and/or cigarette marketing standards act
enforcement activities. No monies shall be available from this appropri-
ation absent a certificate of allocation from the director of the budg-
et.
S 8. This act shall take effect September 1, 2015 and shall apply in
accordance with the applicable transitional provisions of sections 1106
and 1217 of the tax law.
S. 4209 152
PART MMM
Section 1. The economic development law is amended by adding a new
section 212-a to read as follows:
S 212-A. VETERANS ENTREPRENEURSHIP ASSISTANCE. THAT PORTION OF ANY
FUNDING PROVIDED TO SUPPORT CENTERS OR DEVELOPMENT CENTERS PURSUANT TO
SECTION TWO HUNDRED ELEVEN OR TWO HUNDRED TWELVE OF THIS ARTICLE FOR
MANAGEMENT AND ASSISTANCE TO VETERANS WHO ARE SEEKING TO START OR ARE
STARTING NEW BUSINESS VENTURES, OR TO TRAIN VETERANS IN THE PRINCIPLES
AND PRACTICE OF ENTREPRENEURSHIP IN ORDER TO PREPARE THEM TO PURSUE
SELF-EMPLOYMENT OPPORTUNITIES, SHALL BE BASED ON THE EXTENT, QUALITY,
AND COMPREHENSIVENESS OF SERVICES PROVIDED, DIRECTLY OR INDIRECTLY, AND
THE NUMBERS SERVED, AND NEED NOT BE EQUAL TO ALL SUPPORT CENTERS OR
DEVELOPMENT CENTERS. ANY SUCH FUNDING AMOUNTS SHALL ALSO BE AVAILABLE
ON APPLICATION AND ON THE BASIS OF THE SAME CRITERIA TO INCUBATORS
DESIGNATED AS NEW YORK STATE INCUBATORS PURSUANT TO SECTION SIXTEEN-V OF
THE URBAN DEVELOPMENT CORPORATION ACT. A PORTION OF FUNDS PROVIDED FOR
ANY SUCH PURPOSES SHALL ALSO BE AVAILABLE TO OBTAIN EXPERT CONSULTING
SERVICES TO AN ENTITY WHICH PROVIDES SUCH ENTREPRENEURIAL SERVICES TO
VETERANS ON A STATEWIDE AND NATIONAL BASIS.
S 2. This act shall take effect immediately.
PART NNN
Section 1. Subdivision (a) of section 24 of the tax law is amended by
adding a new paragraph 6 to read as follows:
(6) FOR THE PERIOD TWO THOUSAND FIFTEEN THROUGH TWO THOUSAND NINETEEN,
IN ADDITION TO THE AMOUNT OF CREDIT ESTABLISHED IN PARAGRAPH TWO OF THIS
SUBDIVISION, A TAXPAYER SHALL BE ALLOWED A CREDIT EQUAL TO THE PRODUCT
(OR PRO RATA SHARE OF THE PRODUCT, IN THE CASE OF A MEMBER OF A PARTNER-
SHIP) OF FIVE PERCENT AND THE AMOUNT OF WAGES OR SALARIES PAID TO INDI-
VIDUALS DIRECTLY EMPLOYED (EXCLUDING THOSE EMPLOYED AS WRITERS, DIREC-
TORS, MUSIC DIRECTORS, PRODUCERS AND PERFORMERS, INCLUDING BACKGROUND
ACTORS WITH NO SCRIPTED LINES) BY A QUALIFIED FILM PRODUCTION COMPANY OR
A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY FOR SERVICES PERFORMED
BY THOSE INDIVIDUALS IN ONE IF THE COUNTIES SPECIFIED IN THIS PARAGRAPH
IN CONNECTION WITH A QUALIFIED FILM WITH A MINIMUM BUDGET OF FIVE
HUNDRED THOUSAND DOLLARS. FOR PURPOSES OF THIS ADDITIONAL CREDIT, THE
SERVICES MUST BE PERFORMED IN ONE OR MORE OF THE FOLLOWING COUNTIES:
WARREN, SARATOGA, WASHINGTON, RENSSELAER, GREENE, COLUMBIA, ULSTER,
DUTCHESS, SULLIVAN, ORANGE, PUTNAM AND SUFFOLK. THE AGGREGATE AMOUNT OF
TAX CREDITS ALLOWED PURSUANT TO THE AUTHORITY OF THIS PARAGRAPH DURING
THE PERIOD TWO THOUSAND SIXTEEN THROUGH TWO THOUSAND NINETEEN SHALL BE
TWO MILLION FIVE HUNDRED THOUSAND DOLLARS EACH YEAR OF THE ANNUAL ALLO-
CATION MADE AVAILABLE TO THE PROGRAM PURSUANT TO PARAGRAPH FIVE OF THIS
SUBDIVISION. SUCH AGGREGATE AMOUNT OF CREDITS SHALL BE ALLOCATED BY THE
GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVELOPMENT AMONG
TAXPAYERS IN ORDER OF PRIORITY BASED UPON THE DATE OF FILING AN APPLICA-
TION FOR ALLOCATION OF FILM PRODUCTION CREDIT WITH SUCH OFFICE. IF THE
TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR UNDER THIS PARAGRAPH IN
ANY YEAR EXCEEDS THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED FOR SUCH
YEAR UNDER THIS PARAGRAPH, SUCH EXCESS SHALL BE TREATED AS HAVING BEEN
APPLIED FOR ON THE FIRST DAY OF THE NEXT YEAR. IF THE TOTAL AMOUNT OF
ALLOCATED TAX CREDITS APPLIED FOR UNDER THIS PARAGRAPH AT THE CONCLUSION
OF ANY YEAR IS LESS THAN FIVE HUNDRED THOUSAND DOLLARS, THE REMAINDER
SHALL BE TREATED AS PART OF THE ANNUAL ALLOCATION MADE AVAILABLE TO THE
S. 4209 153
PROGRAM PURSUANT TO PARAGRAPH FIVE OF THIS SUBDIVISION. HOWEVER, IN NO
EVENT MAY THE TOTAL OF THE CREDITS ALLOCATED UNDER THIS PARAGRAPH AND
THE CREDITS ALLOCATED UNDER PARAGRAPH FIVE OF SUBDIVISION (A) OF SECTION
THIRTY-ONE OF THIS ARTICLE EXCEED FIVE MILLION DOLLARS IN ANY YEAR
DURING THE PERIOD TWO THOUSAND SIXTEEN THROUGH TWO THOUSAND NINETEEN.
S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2016.
PART OOO
Section 1. Article 2-A of the public housing law, as added by section
1 of part CC of chapter 63 of the laws of 2000, subdivision 4 of section
22 as amended by section 2 of part P of chapter 59 of the laws of 2014,
is amended to read as follows:
ARTICLE 2-A
NEW YORK STATE LOW INCOME AND MIDDLE INCOME
HOUSING TAX CREDIT PROGRAM
Section 21. Definitions.
22. Allowance of credit, amount and limitations.
23. Project monitoring.
24. Credit recapture.
25. Regulations, coordination with federal low-income housing
credit provisions.
S 21. Definitions. 1. (a) "Applicable percentage" means, FOR THE
PURPOSES OF AN ELIGIBLE LOW-INCOME BUILDING, the appropriate percentage
(depending on whether a building is new, existing, or federally subsi-
dized) prescribed by the secretary of the treasury for purposes of
section 42 of the internal revenue code AND, FOR THE PURPOSES OF AN
ELIGIBLE MIDDLE-INCOME BUILDING, THIRTY PERCENT OF THE QUALIFIED BASIS
OF THE BUILDING AS DETERMINED PURSUANT TO SECTION 42 OF THE INTERNAL
REVENUE CODE, for the month which is the earlier of:
(i) the month in which the eligible low-income building OR THE ELIGI-
BLE MIDDLE-INCOME BUILDING is placed in service, or
(ii) at the election of the taxpayer,
(A) the month in which the taxpayer and the commissioner enter into an
agreement with respect to such building (which is binding on the commis-
sioner, the taxpayer, and all successors in interest) as to the housing
credit dollar amount to be allocated to such building, or
(B) in the case of any building to which subsection (h)(4)(B) of such
section 42 applies, the month in which the tax-exempt obligations are
issued.
(b) A month may be elected under subparagraph (ii) of paragraph (a) of
this subdivision only if the election is made not later than the fifth
day after the close of such month. Such election, once made, shall be
irrevocable.
(c) If, as of the close of any taxable year in the credit period, the
qualified basis of an eligible low-income building OR AN ELIGIBLE
MIDDLE-INCOME BUILDING exceeds such basis as of the close of the first
year of the credit period, the applicable percentage which shall apply
to such excess shall be two-thirds of the applicable percentage
originally ascribed to such building.
2. "Compliance period" means, with respect to any building, the period
of fifteen taxable years beginning with the first taxable year of the
credit period with respect to such building.
S. 4209 154
3. "Credit period" means, with respect to any eligible low-income
building OR ELIGIBLE MIDDLE-INCOME BUILDING, the period of ten taxable
years beginning with
(a) the taxable year in which the building is placed in service, or
(b) at the election of the taxpayer, the succeeding taxable year,
but only if the building is an eligible low-income building as of the
close of the first year of such period. The election under paragraph (b)
of this subdivision, once made, shall be irrevocable.
4. "Eligibility statement" means a statement issued by the commission-
er certifying that a building is an eligible low-income building OR AN
ELIGIBLE MIDDLE-INCOME BUILDING. Such statement shall set forth the
taxable year in which such building is placed in service, the dollar
amount of low-income housing credit OR MIDDLE-INCOME HOUSING CREDIT
allocated by the commissioner to such building as provided in subdivi-
sion five of section twenty-two of this article, the applicable percent-
age and maximum qualified basis with respect to such building taken into
account in determining such dollar amount, sufficient information to
identify each such building and the taxpayer or taxpayers with respect
to each such building, and such other information as the commissioner,
in consultation with the commissioner of taxation and finance, shall
prescribe. Such statement shall be first issued following the close of
the first taxable year in the credit period, and thereafter, to the
extent required by the commissioner of taxation and finance, following
the close of each taxable year of the compliance period.
5. "Eligible low-income building" means a building located in this
state which either
(a) is a qualified low-income building as defined in section 42(c) of
the internal revenue code, or
(b) would be a qualified low-income building under such section if the
20-50 test specified in subsection (g)(1) of such section were disre-
garded and the 40-60 test specified in such subsection (requiring that
at least forty percent of residential units be both rent-restricted and
occupied by individuals whose income is sixty percent or less of area
median gross income) were a 40-90 test.
5-A. "ELIGIBLE MIDDLE-INCOME BUILDING" MEANS A BUILDING LOCATED IN
THIS STATE WHICH IS COMPOSED OF MULTIPLE RESIDENTIAL UNITS WHICH WILL,
UPON COMPLETION, BE AFFORDABLE BY ELIGIBLE MIDDLE-INCOME HOUSEHOLDS.
5-B. "ELIGIBLE MIDDLE-INCOME HOUSEHOLD" MEANS (A) IN CITIES HAVING A
POPULATION OF ONE MILLION OR MORE, A PERSON OR FAMILY RESIDING IN A
RESIDENTIAL UNIT WHOSE INCOME DOES NOT EXCEED ONE HUNDRED THIRTY PERCENT
OF THE MEDIAN INCOME FOR THE METROPOLITAN STATISTICAL AREA IN WHICH AN
ELIGIBLE MIDDLE-INCOME BUILDING IS LOCATED; OR (B) IN ANY PORTION OF THE
STATE OUTSIDE OF A CITY HAVING A POPULATION OF ONE MILLION OR MORE AND
(I) WITHIN A METROPOLITAN STATISTICAL AREA, A PERSON OR FAMILY RESIDING
IN A RESIDENTIAL UNIT WHOSE INCOME DOES NOT EXCEED ONE HUNDRED THIRTY
PERCENT OF THE MEDIAN INCOME FOR THE METROPOLITAN STATISTICAL AREA IN
WHICH AN ELIGIBLE MIDDLE-INCOME BUILDING IS LOCATED, OR ONE HUNDRED
THIRTY PERCENT OF THE STATEWIDE MEDIAN INCOME, WHICHEVER SHALL BE LESS,
OR (II) OUTSIDE OF METROPOLITAN STATISTICAL AREA, A PERSON OR FAMILY
RESIDING IN A RESIDENTIAL UNIT WHOSE INCOME DOES NOT EXCEED ONE HUNDRED
THIRTY PERCENT OF THE MEDIAN INCOME FOR THE COUNTY IN WHICH AN ELIGIBLE
MIDDLE-INCOME BUILDING IS LOCATED, OR ONE HUNDRED THIRTY PERCENT OF THE
STATEWIDE MEDIAN INCOME, WHICHEVER SHALL BE LESS.
6. "Qualified basis" of an eligible low-income building OR AN ELIGIBLE
MIDDLE-INCOME BUILDING means the qualified basis of such building deter-
mined under section 42(c) of the internal revenue code, or, FOR AN
S. 4209 155
ELIGIBLE LOW-INCOME BUILDING, which would be determined under such
section if the 40-90 test specified in paragraph (b) of subdivision five
of this section applied under such section 42 to determine if such
building were part of a qualified low-income housing project.
7. References in this article to section 42 of the internal revenue
code shall mean such section as amended from time to time.
S 22. Allowance of credit, amount and limitations. 1. A taxpayer
subject to tax under article nine-A, twenty-two, thirty-two or thirty-
three of the tax law which owns an interest in one or more eligible
low-income buildings OR ELIGIBLE MIDDLE-INCOME BUILDINGS shall be
allowed a credit against such tax for the amount of low-income housing
credit OR FOR THE AMOUNT OF THE MIDDLE-INCOME HOUSING CREDIT, AS THE
CASE MAY BE, allocated by the commissioner to each such building. Except
as provided in subdivision two of this section, the credit amount so
allocated shall be allowed as a credit against the tax for the ten taxa-
ble years in the credit period.
2. Adjustment of first-year credit allowed in eleventh year. The cred-
it allowable for the first taxable year of the credit period with
respect to any building shall be adjusted using the rules of section
42(f)(2) of the internal revenue code (relating to first-year adjustment
of qualified basis by the weighted average of low-income to total resi-
dential units, OR BY THE WEIGHTED AVERAGE OF MIDDLE-INCOME TO TOTAL
RESIDENTIAL UNITS, AS THE CASE MAY BE), and any reduction in first-year
credit by reason of such adjustment shall be allowable for the first
taxable year following the credit period.
3. Amount of credit. Except as provided in subdivisions four and five
of this section, the amount of low-income housing credit AND MIDDLE-IN-
COME HOUSING CREDIT shall be the applicable percentage of the qualified
basis of each eligible low-income building OR OF EACH ELIGIBLE
MIDDLE-INCOME BUILDING.
4. Statewide limitation. The aggregate dollar amount of credit which
the commissioner may allocate to eligible low-income buildings under
this article shall be sixty-four million dollars. THE AGGREGATE DOLLAR
AMOUNT OF CREDIT WHICH THE COMMISSIONER MAY ALLOCATE TO ELIGIBLE
MIDDLE-INCOME BUILDINGS UNDER THIS ARTICLE SHALL BE TWENTY-FIVE 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 eligible low-income building OR AN ELIGIBLE MIDDLE-INCOME BUILDING
for each year of the credit period.
5. Building limitation. The dollar amount of credit allocated to any
building shall not exceed the amount the commissioner determines is
necessary for the financial feasibility of the project and the viability
of the building as an eligible low-income building OR AS AN ELIGIBLE
MIDDLE-INCOME BUILDING throughout the credit period. In allocating a
dollar amount of credit to any building, the commissioner shall specify
the applicable percentage and the maximum qualified basis which may be
taken into account under this article with respect to such building. The
applicable percentage and the maximum qualified basis with respect to a
building shall not exceed the amounts determined in subdivisions one and
six, respectively, of section twenty-one of this article.
6. Long-term commitment to low-income OR MIDDLE-INCOME housing
required. (A) No credit shall be allowed under this article with respect
to [a] AN ELIGIBLE LOW-INCOME building for the taxable year unless an
extended low-income housing commitment is in effect as of the end of
such taxable year. For purposes of this [subdivision] PARAGRAPH, the
S. 4209 156
term "extended low-income housing commitment" means an agreement between
the taxpayer and the commissioner substantially similar to the agreement
specified in section 42(h)(6)(B) of the internal revenue code.
(B) NO CREDIT SHALL BE ALLOWED UNDER THIS ARTICLE WITH RESPECT TO AN
ELIGIBLE MIDDLE-INCOME BUILDING FOR THE TAXABLE YEAR UNLESS AN EXTENDED
MIDDLE-INCOME HOUSING COMMITMENT IS IN EFFECT AS OF THE END OF SUCH
TAXABLE YEAR. FOR THE PURPOSES OF THIS PARAGRAPH, THE TERM "EXTENDED
MIDDLE-INCOME HOUSING COMMITMENT" MEANS AN AGREEMENT BETWEEN THE TAXPAY-
ER AND THE COMMISSIONER WHICH HAS BEEN DETERMINED BY THE COMMISSIONER TO
BE SIMILAR TO THE AGREEMENT SPECIFIED IN SECTION 42(H)(6)(B) OF THE
INTERNAL REVENUE CODE.
7. Credit to successor owner. If a credit is allowed under subdivision
one of this section with respect to an eligible low-income building OR
AN ELIGIBLE MIDDLE-INCOME BUILDING, and such building (or an interest
therein) is sold during the credit period, the credit for the period
after the sale which would have been allowable under such subdivision
one to the prior owner had the building not been sold shall be allowable
to the new owner. Credit for the year of sale shall be allocated between
the parties on the basis of the number of days during such year that the
building or interest was held by each.
S 23. Project monitoring. The commissioner shall establish such proce-
dures as he OR SHE deems necessary for monitoring compliance of an
eligible low-income building OR AN ELIGIBLE MIDDLE-INCOME BUILDING with
the provisions of this article, and for notifying the commissioner of
taxation and finance of any such noncompliance of which he OR SHE
becomes aware.
S 24. Credit recapture. If, as of the close of any taxable year in the
compliance period, the amount of the qualified basis of any building
with respect to the taxpayer is less than the amount of such basis as of
the close of the preceding taxable year, the credit under this article
may be recaptured as provided in section eighteen OR EIGHTEEN-A of the
tax law.
S 25. Regulations, coordination with federal low-income housing credit
provisions. 1. The commissioner shall promulgate rules and regulations
necessary to administer the provisions of this act.
2. The provisions of section 42 of the internal revenue code shall
apply to the credit under this article, provided however, to the extent
such provisions are inconsistent with this article, the provisions of
this article shall control.
S 2. The tax law is amended by adding a new section 18-a to read as
follows:
S 18-A. MIDDLE-INCOME HOUSING CREDIT. (A) ALLOWANCE OF CREDIT. 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 (D) OF THIS
SECTION, WITH RESPECT TO THE OWNERSHIP OF ELIGIBLE MIDDLE-INCOME BUILD-
INGS FOR WHICH AN ELIGIBILITY STATEMENT HAS BEEN ISSUED BY THE COMMIS-
SIONER OF HOUSING AND COMMUNITY RENEWAL. THE AMOUNT OF THE CREDIT SHALL
BE THE CREDIT AMOUNT FOR EACH SUCH BUILDING ALLOCATED BY SUCH COMMIS-
SIONER AS PROVIDED IN ARTICLE TWO-A OF THE PUBLIC HOUSING LAW. THE CRED-
IT AMOUNT SHALL BE ALLOWED FOR EACH OF THE TEN TAXABLE YEARS IN THE
CREDIT PERIOD, AND ANY REDUCTION IN FIRST-YEAR CREDIT AS PROVIDED IN
SUBDIVISION TWO OF SECTION TWENTY-TWO OF SUCH LAW SHALL BE ALLOWED IN
THE ELEVENTH TAXABLE YEAR.
(B) CREDIT RECAPTURE. (1) GENERAL. IF,
S. 4209 157
(A) AS OF THE CLOSE OF ANY TAXABLE YEAR IN THE COMPLIANCE PERIOD, THE
AMOUNT OF THE QUALIFIED BASIS OF ANY BUILDING WITH RESPECT TO THE
TAXPAYER IS LESS THAN
(B) THE AMOUNT OF SUCH BASIS AS OF THE CLOSE OF THE PRECEDING TAXABLE
YEAR,
(C) THEN THE CREDIT RECAPTURE AMOUNT MUST BE ADDED BACK FOR THE TAXA-
BLE YEAR.
(2) CREDIT RECAPTURE AMOUNT. THE CREDIT RECAPTURE AMOUNT IS AN AMOUNT
EQUAL TO THE SUM OF
(A) THE AGGREGATE DECREASE IN THE CREDITS ALLOWED TO THE TAXPAYER
UNDER THIS SECTION FOR ALL PRIOR TAXABLE YEARS WHICH WOULD HAVE RESULTED
IF THE ACCELERATED PORTION OF THE CREDIT ALLOWABLE BY REASON OF THIS
SECTION WERE NOT ALLOWED FOR ALL PRIOR TAXABLE YEARS WITH RESPECT TO THE
EXCESS OF THE AMOUNT DESCRIBED IN SUBPARAGRAPH (B) OF PARAGRAPH (1) OF
THIS SUBDIVISION OVER THE AMOUNT DESCRIBED IN SUBPARAGRAPH (A) OF SUCH
PARAGRAPH, PLUS
(B) INTEREST AT THE OVERPAYMENT RATE ESTABLISHED UNDER SECTION ONE
THOUSAND NINETY-SIX OF THIS CHAPTER ON THE AMOUNT DETERMINED UNDER
SUBPARAGRAPH (A) OF THIS PARAGRAPH FOR EACH PRIOR TAXABLE YEAR FOR THE
PERIOD BEGINNING ON THE DUE DATE FOR FILING THE REPORT FOR THE PRIOR
TAXABLE YEAR INVOLVED.
(3) ACCELERATED PORTION OF CREDIT. FOR PURPOSES OF PARAGRAPH TWO OF
THIS SUBDIVISION, THE ACCELERATED PORTION OF THE CREDIT FOR THE PRIOR
TAXABLE YEARS WITH RESPECT TO ANY AMOUNT OF BASIS IS THE EXCESS OF
(A) THE AGGREGATE CREDIT ALLOWED BY REASON OF THIS SECTION (WITHOUT
REGARD TO THIS SUBDIVISION) FOR SUCH YEARS WITH RESPECT TO SUCH BASIS,
OVER
(B) THE AGGREGATE CREDIT WHICH WOULD BE ALLOWABLE BY REASON OF THIS
SECTION FOR SUCH YEARS WITH RESPECT TO SUCH BASIS IF THE AGGREGATE CRED-
IT WHICH WOULD (BUT FOR THIS SUBDIVISION) HAVE BEEN ALLOWED FOR THE
ENTIRE COMPLIANCE PERIOD WERE ALLOWABLE RATABLY OVER FIFTEEN YEARS.
(4) SPECIAL RULES. FOR PURPOSES OF THIS SUBDIVISION, THE RULES OF
SECTION 42 (J)(4)(B) AND (C) OF THE INTERNAL REVENUE CODE SHALL APPLY IN
DETERMINING THE CREDIT RECAPTURE AMOUNT.
(5) EXCEPTIONS TO RECAPTURE. RECAPTURE UNDER THIS SUBDIVISION SHALL
NOT APPLY TO A REDUCTION IN QUALIFIED BASIS
(A) BY REASON OF A CASUALTY LOSS, IF THE COMMISSIONER, IN CONSULTATION
WITH THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL, DETERMINES THAT
SUCH LOSS IS RESTORED BY RECONSTRUCTION OR REPLACEMENT WITHIN A REASON-
ABLE PERIOD, OR
(B) BY REASON OF A CHANGE IN FLOOR SPACE DEVOTED TO MIDDLE-INCOME
UNITS IN A BUILDING, IF SUCH BUILDING REMAINS AN ELIGIBLE MIDDLE-INCOME
BUILDING AFTER SUCH CHANGE, AND IF THE COMMISSIONER, IN CONSULTATION
WITH THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL, DETERMINES THAT
SUCH CHANGE IS DE MINIMIS, OR
(C) BY REASON OF ERROR IN COMPLYING WITH MIDDLE-INCOME ELIGIBILITY
TESTS REFERRED TO IN SUBDIVISION FIVE OF SECTION TWENTY-ONE OF THE
PUBLIC HOUSING LAW, IF THE COMMISSIONER, IN CONSULTATION WITH THE
COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL, DETERMINES THAT SUCH
ERROR IS DE MINIMIS.
(6) RECAPTURE BY PARTNERS OF A PARTNERSHIP. IN THE CASE OF OWNERSHIP
OF A BUILDING OR INTEREST THEREIN BY A PARTNERSHIP WHICH HAS THIRTY-FIVE
OR MORE PARTNERS, THE PROVISIONS OF SECTION 42(J)(5) OF THE INTERNAL
REVENUE CODE SHALL APPLY TO ANY RECAPTURE UNDER THIS SUBDIVISION UNLESS
THE PARTNERSHIP ELECTS NOT TO HAVE SUCH PROVISIONS APPLY.
S. 4209 158
(7) (A) THE CREDIT RECAPTURE REQUIRED UNDER THIS SUBDIVISION WILL NOT
APPLY SOLELY BY REASON OF THE DISPOSITION OF A BUILDING OR AN INTEREST
THEREIN IF IT IS REASONABLY EXPECTED THAT SUCH BUILDING WILL CONTINUE TO
BE OPERATED AS AN ELIGIBLE MIDDLE-INCOME BUILDING FOR THE REMAINING
COMPLIANCE PERIOD WITH RESPECT TO SUCH BUILDING.
(B) STATUTE OF LIMITATIONS. IF A BUILDING (OR AN INTEREST THEREIN) IS
DISPOSED OF DURING ANY TAXABLE YEAR AND THERE IS ANY REDUCTION IN THE
QUALIFIED BASIS OF SUCH BUILDING WHICH RESULTS IN AN INCREASE IN TAX
UNDER THIS SECTION FOR SUCH TAXABLE OR ANY SUBSEQUENT TAXABLE YEAR, THEN
(I) THE STATUTORY PERIOD FOR THE ASSESSMENT OF ANY DEFICIENCY WITH
RESPECT TO SUCH INCREASE IN TAX WILL NOT EXPIRE BEFORE THE EXPIRATION OF
THREE YEARS FROM THE DATE THE COMMISSIONER OF HOUSING AND COMMUNITY
RENEWAL IS NOTIFIED BY THE TAXPAYER (IN SUCH MANNER AS THE COMMISSIONER
OF HOUSING AND COMMUNITY RENEWAL MAY PRESCRIBE) OF SUCH REDUCTION IN
QUALIFIED BASIS, AND
(II) SUCH DEFICIENCY MAY BE ASSESSED BEFORE THE EXPIRATION OF SUCH
THREE-YEAR PERIOD NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW OR
RULE OF LAW WHICH WOULD OTHERWISE PREVENT SUCH ASSESSMENT.
(C) CONSTRUCTION WITH PUBLIC HOUSING LAW; DEFINITIONS. THE PROVISIONS
OF THIS SECTION SHALL BE CONSTRUED IN CONJUNCTION WITH THE PROVISIONS OF
ARTICLE TWO-A OF THE PUBLIC HOUSING LAW. FOR DEFINITIONS RELATING TO THE
MIDDLE-INCOME HOUSING CREDIT, SEE SECTION TWENTY-ONE OF SUCH LAW.
(D) 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-B: SUBDIVISION 15-A,
(2) ARTICLE 22: SECTION 606: SUBSECTIONS (I) AND (X-1),
(3) ARTICLE 33: SECTION 1511: SUBDIVISION (N-1).
S 3. Section 210-B of the tax law is amended by adding a new subdivi-
sion 15-a to read as follows:
15-A. MIDDLE-INCOME HOUSING CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAY-
ER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE
WITH RESPECT TO THE OWNERSHIP OF ELIGIBLE MIDDLE-INCOME BUILDINGS,
COMPUTED AS PROVIDED IN SECTION EIGHTEEN-A OF THIS CHAPTER.
(B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT, IN THE AGGREGATE, REDUCE THE TAX DUE FOR
SUCH YEAR TO LESS THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARA-
GRAPHS (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 SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION TWO
HUNDRED EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
SUBSECTION (C) OF SECTION TEN HUNDRED EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
(C) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT,
SEE SUBDIVISION (B) OF SECTION EIGHTEEN-A OF THIS CHAPTER.
S 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xiii-a) to read as
follows:
(XIII-A) MIDDLE-INCOME HOUSING CREDIT AMOUNT UNDER SUBDIVISION
CREDIT UNDER SUBSECTION (X-L) FIFTEEN-A OF SECTION TWO HUNDRED
TEN-B
S 5. Section 606 of the tax law is amended by adding a new subsection
(x-1) to read as follows:
S. 4209 159
(X-1) MIDDLE-INCOME HOUSING CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAY-
ER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE
WITH RESPECT TO THE OWNERSHIP OF ELIGIBLE MIDDLE-INCOME BUILDINGS,
COMPUTED AS PROVIDED IN SECTION EIGHTEEN-A OF THIS CHAPTER.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF CREDIT ALLOWABLE 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.
(3) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT,
SEE SUBDIVISION (B) OF SECTION EIGHTEEN-A OF THIS CHAPTER.
S 6. Section 1511 of the tax law is amended by adding a new subdivi-
sion (n-1) to read as follows:
(N-1) MIDDLE-INCOME HOUSING CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAY-
ER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE
WITH RESPECT TO THE OWNERSHIP OF ELIGIBLE MIDDLE-INCOME BUILDINGS,
COMPUTED AS PROVIDED IN SECTION EIGHTEEN-A OF THIS CHAPTER.
(2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT, IN THE AGGREGATE, REDUCE THE TAX DUE FOR
SUCH YEAR TO LESS THAN THE MINIMUM TAX FIXED BY PARAGRAPH FOUR OF SUBDI-
VISION (A) OF SECTION FIFTEEN HUNDRED TWO OF THIS ARTICLE OR BY SECTION
FIFTEEN HUNDRED TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE. HOWEV-
ER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXA-
BLE YEAR REDUCES THE TAX TO SUCH AMOUNT, THEN ANY AMOUNT OF CREDIT THUS
NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT
OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF
SECTION TEN HUNDRED EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE
PROVISIONS OF SUBSECTION (C) OF SECTION TEN HUNDRED EIGHTY-EIGHT OF THIS
CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
(3) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT,
SEE SUBDIVISION (B) OF SECTION EIGHTEEN-A OF THIS CHAPTER.
S 7. This act shall take effect immediately and shall apply to tax
years commencing on or after January 1, 2015; provided, however, that if
this act takes effect before the effective date of section 2 of part P
of chapter 59 of the laws of 2014, then the amendments to subdivision 4
of section 22 of the public housing law, made by section one of this
act, shall take effect on the same date and in the same manner as such
section.
PART PPP
Section 1. Subdivision 11 of section 2 of the tax law, as amended by
section 20 of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
11. The term "combinable captive insurance company" means an entity
that is treated as an association taxable as a corporation under the
internal revenue code (a) more than fifty percent of the voting stock of
which is owned or controlled, directly or indirectly, by a single entity
that is treated as an association taxable as a corporation under the
internal revenue code and not exempt from federal income tax; (b) that
is licensed as a captive insurance company under the laws of this state
or another jurisdiction; (c) whose business includes providing, directly
and indirectly, insurance or reinsurance covering the risks of its
parent and/or members of its affiliated group; and (d) fifty percent or
less of whose gross receipts for the taxable year consist of premiums
S. 4209 160
from arrangements that constitute insurance for federal income tax
purposes; PROVIDED, HOWEVER, IF THE CAPTIVE INSURANCE COMPANY IS
LICENSED IN NEW YORK STATE AND OWNED DIRECTLY OR INDIRECTLY BY A REIT,
ALL PREMIUMS SHALL BE CONSIDERED REGARDLESS OF WHETHER THEY ARE FROM
ARRANGEMENTS THAT CONSTITUTE INSURANCE FOR FEDERAL INCOME TAX PURPOSES.
For purposes of this subdivision, "affiliated group" has the same mean-
ing as that term is given in section 1504 of the internal revenue code,
except that the term "common parent corporation" in that section is
deemed to mean any person, as defined in section 7701 of the internal
revenue code and references to "at least eighty percent" in section 1504
of the internal revenue code are to be read as "fifty percent or more;"
section 1504 of the internal revenue code is to be read without regard
to the exclusions provided for in subsection (b) of that section;
"premiums" has the same meaning as that term is given in paragraph one
of subdivision (c) of section fifteen hundred ten of this chapter,
except that it includes consideration for annuity contracts and excludes
any part of the consideration for insurance, reinsurance or annuity
contracts that do not provide bona fide insurance, reinsurance or annui-
ty benefits; and "gross receipts" includes the amounts included in gross
receipts for purposes of section 501(c) (15) of the internal revenue
code, except that those amounts also include all premiums as defined in
this subdivision.
S 2. This act shall take effect immediately and apply to taxable years
commencing on and after January 1, 2015.
PART QQQ
Section 1. Section 606 of the tax law is amended by adding a new
subsection (ccc) to read as follows:
(CCC) ELDERLY RESIDENTIAL EMERGENCY REPAIR CREDIT. (1) ALLOWANCE OF
CREDIT. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND FIFTEEN, AN ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE
TAX IMPOSED BY THIS ARTICLE EQUAL TO THE SUM OF ALL EMERGENCY REPAIR
COSTS INCURRED FOR THE PRIMARY RESIDENCE OF THE TAXPAYER, NOT TO EXCEED
SEVEN THOUSAND FIVE HUNDRED DOLLARS DURING ANY TAXABLE YEAR.
(2) ELIGIBLE TAXPAYER. FOR THE PURPOSES OF THIS SUBSECTION, "ELIGIBLE
TAXPAYER" SHALL MEAN A RESIDENT TAXPAYER WHO IS SIXTY YEARS OF AGE OR
OLDER, WHOSE ADJUSTED FEDERAL GROSS INCOME DOES NOT EXCEED ONE HUNDRED
THIRTY PERCENT OF THE MEDIAN ANNUAL INCOME FOR ALL RESIDENTS OF THE
REGION IN WHICH THE TAXPAYER'S PRIMARY RESIDENCE IS LOCATED OR A LARGER
AREA ENCOMPASSING SUCH REGION FOR WHICH MEDIAN ANNUAL INCOME CAN BE
DETERMINED.
(3) EMERGENCY REPAIR. FOR THE PURPOSES OF THIS SUBSECTION, "EMERGENCY
REPAIR" SHALL MEAN ANY REPAIR OR MODIFICATION OF THE PRIMARY RESIDENCE
OF A TAXPAYER WHICH IS NECESSARY TO MAKE IT POSSIBLE FOR THE TAXPAYER TO
CONTINUE TO RESIDE IN SUCH RESIDENCE INCLUDING, BUT NOT LIMITED TO:
(A) THE INSTALLATION OF RAMPS;
(B) THE INSTALLATION OF BATHROOM AND HOUSEHOLD GRAB BARS;
(C) THE WIDENING OF DOORWAYS;
(D) THE LOWERING OF LIGHT SWITCHES; AND
(E) OTHER MODIFICATIONS THAT WOULD MAKE THE RESIDENCE WHEELCHAIR-AC-
CESSIBLE OR OTHERWISE ENABLE THE TAXPAYER TO REMAIN SAFELY IN HIS OR HER
RESIDENCE.
(4) OVERPAYMENT. IF THE AMOUNT 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
S. 4209 161
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
(5) ALLOCATION OF CREDITS. THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
UNDER THIS SUBSECTION IN ANY TAXABLE YEAR SHALL NOT EXCEED FIVE MILLION
DOLLARS.
S 2. This act shall take effect immediately.
PART RRR
Section 1. For the purposes of this act, the term "equipment" shall
mean a machine or system, and any part or subassembly thereof.
S 2. For the purposes of this act, equipment shall be considered to be
"directly and predominantly" used, as such term is used in clause (i) of
paragraph 1 of subdivision (z) of section 1115 of the tax law, as
repealed by section 30, part S-1 of chapter 57 of the laws of 2009 and
last amended by section 17 of part CC of chapter 85 of the laws of 2002,
when such equipment was received, inventoried or organized, and then
prepared for distribution at 124 Metropolitan Park Drive, Syracuse, New
York, or 3606 John Glenn Blvd, Syracuse, New York, by a qualified empire
zone enterprise operation that has operated at both locations, provided
such equipment, upon distribution, is stocked, repaired, cleaned or
otherwise handled for the purpose of maintenance or upkeep by employees
of such qualified empire zone enterprise, provided such service work or
duties originate from, and terminate at, either empire zone location
described in this section.
S 3. Notwithstanding any law, rule, or regulation, or any determi-
nation or decision of the department of taxation and finance or the
division of tax appeals to the contrary, the division of tax appeals
shall accept and review, pursuant to part 3000 of the tax appeals tribu-
nal rules of practice and procedure, a petition related to the interpre-
tation of the term "directly and predominantly", as such term is used in
section two of this act, provided that such petition is filed by a qual-
ified empire zone enterprise that has operated at both locations
described in section two of this act, and provided further that such
petition challenges a determination or decision of the department of
taxation and finance or the division of tax appeals that denied or with-
held sales and use tax credits as afforded by the provision of the tax
law described in section two of this act.
S 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after March 1, 2003, and shall apply to any audit
or enforcement proceeding of the department of taxation and finance, or
any other administrative matter or proceeding of such department,
commencing on or after March 1, 2003.
PART SSS
Section 1. Section 1115 of the tax law is amended by adding a new
subdivision (jj) to read as follows:
(JJ) TANGIBLE PERSONAL PROPERTY OR SERVICES OTHERWISE TAXABLE UNDER
THIS ARTICLE SOLD TO A RELATED PERSON SHALL NOT BE SUBJECT TO THE TAXES
IMPOSED BY SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE OR THE COMPENSAT-
ING USE TAX IMPOSED UNDER SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE
WHERE THE PURCHASER CAN SHOW THAT THE FOLLOWING CONDITIONS HAVE BEEN MET
TO THE EXTENT THEY ARE APPLICABLE: (1)(I) THE VENDOR AND THE PURCHASER
ARE REFERENCED AS EITHER A "COVERED COMPANY" AS DESCRIBED IN SECTION
243.2(F) OR A "MATERIAL ENTITY" AS DESCRIBED IN SECTION 243.2(L) OF THE
S. 4209 162
CODE OF FEDERAL REGULATIONS IN A RESOLUTION PLAN THAT HAS BEEN SUBMITTED
TO AN AGENCY OF THE UNITED STATES FOR THE PURPOSE OF SATISFYING SUBPARA-
GRAPH 1 OF PARAGRAPH (D) OF SECTION ONE HUNDRED SIXTY-FIVE OF THE DODD-
FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT (THE "ACT") OR ANY
SUCCESSOR LAW, OR (II) THE VENDOR AND THE PURCHASER ARE SEPARATE LEGAL
ENTITIES PURSUANT TO A DIVESTITURE DIRECTED PURSUANT TO SUBPARAGRAPH 5
OF PARAGRAPH (D) OF SECTION ONE HUNDRED SIXTY-FIVE OF SUCH ACT OR ANY
SUCCESSOR LAW; (2) THE SALE WOULD NOT HAVE OCCURRED BETWEEN SUCH RELATED
ENTITIES WERE IT NOT FOR SUCH RESOLUTION PLAN OR DIVESTITURE; AND (3) IN
ACQUIRING SUCH PROPERTY OR SERVICES, THE VENDOR DID NOT CLAIM AN
EXEMPTION FROM THE TAX IMPOSED BY THIS STATE OR ANOTHER STATE BASED ON
THE VENDOR'S INTENT TO RESELL SUCH SERVICES OR PROPERTY. A PERSON IS
RELATED TO ANOTHER PERSON FOR PURPOSES OF THIS SUBDIVISION IF THE PERSON
BEARS A RELATIONSHIP TO SUCH PERSON DESCRIBED IN SECTION TWO HUNDRED
SIXTY-SEVEN OF THE INTERNAL REVENUE CODE. THE EXEMPTION PROVIDED BY THIS
SUBDIVISION SHALL NOT APPLY AFTER JUNE THIRTIETH, TWO THOUSAND NINETEEN,
EXCEPT WITH RESPECT TO TRANSACTIONS OCCURRING PURSUANT TO BINDING
CONTRACTS ENTERED INTO ON OR BEFORE SUCH DATE.
S 2. This act shall take effect on the first day of a sales tax quar-
terly period, as described in subdivision (b) of section 1136 of the tax
law, next commencing at least ninety days after the date this act shall
have become a law and shall apply in accordance with the applicable
transitional provisions of sections 1106 and 1217 of the tax law.
PART TTT
Section 1. Subdivision (f) of section 19 of the tax law is relettered
subdivision (g) and a new subdivision (f) is added to read as follows:
(F) NOTWITHSTANDING ANY CONTRARY PROVISION OF THIS SECTION, AN INDI-
VIDUAL TAXPAYER SHALL BE ELIGIBLE FOR THE CREDIT ALLOWED PURSUANT TO
SUBDIVISION (A) OF THIS SECTION PROVIDED THAT SUCH TAXPAYER CONSTRUCTS
OR REHABILITATES QUALIFYING RESIDENTIAL REAL PROPERTY IN CONFORMITY WITH
ENERGY EFFICIENCY STANDARDS ESTABLISHED BY THE NATIONAL ASSOCIATION OF
HOME BUILDERS OR THE LEADERSHIP IN ENERGY AND ENVIRONMENTAL DESIGN
RATING SYSTEM DEVELOPED BY THE UNITED STATES GREEN BUILDING COUNCIL AND
FASHIONS PROOF THEREOF PURSUANT TO SUBDIVISION (C) OF THIS SECTION.
SUCH TAXPAYER SHALL REMAIN ELIGIBLE FOR SUCH CREDIT IRRESPECTIVE OF
THE AMOUNT OF TAX SUCH TAXPAYER PAYS PER ANNUM.
FOR THE PURPOSES OF THIS SUBDIVISION, "QUALIFYING RESIDENTIAL REAL
PROPERTY" SHALL MEAN THE PRINCIPAL PLACE OF RESIDENCE OF AN INDIVIDUAL
TAXPAYER WHO CLAIMS A CREDIT PURSUANT TO THIS SECTION.
S 2. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2016.
PART UUU
Section 1. Section 606 of the tax law is amended by adding a new
subdivision (ccc) to read as follows:
(CCC) SENIOR UTILITY CIRCUIT BREAKER TAX CREDIT. (1) DEFINITIONS. FOR
THE PURPOSES OF THIS SUBSECTION:
(A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL, MARRIED OR HEAD
OF HOUSEHOLD TAXPAYER WHO IS OVER SIXTY-FIVE YEARS OF AGE, WITH A HOUSE-
HOLD GROSS INCOME OF ONE HUNDRED FIFTY THOUSAND DOLLARS OR LESS.
(B) "HOUSEHOLD" OR "MEMBERS OF THE HOUSEHOLD" MEANS A QUALIFIED
TAXPAYER AND ALL OTHER PERSONS, NOT NECESSARILY RELATED, WHO HAVE THE
SAME RESIDENCE AND SHARE ITS FURNISHINGS, FACILITIES AND ACCOMMODATIONS.
S. 4209 163
SUCH TERMS SHALL NOT INCLUDE A TENANT, SUBTENANT, ROOMER OR BOARDER WHO
IS NOT RELATED TO THE QUALIFIED TAXPAYER IN ANY DEGREE SPECIFIED IN
PARAGRAPHS ONE THROUGH EIGHT OF SUBSECTION (A) OF SECTION ONE HUNDRED
FIFTY-TWO OF THE INTERNAL REVENUE CODE. PROVIDED, HOWEVER, NO PERSON MAY
BE A MEMBER OF MORE THAN ONE HOUSEHOLD AT ONE TIME.
(C) "HOUSEHOLD GROSS INCOME" MEANS THE AGGREGATE ADJUSTED GROSS INCOME
OF ALL MEMBERS OF THE HOUSEHOLD FOR THE TAXABLE YEAR AS REPORTED FOR
FEDERAL INCOME TAX PURPOSES, OR WHICH WOULD BE REPORTED AS ADJUSTED
GROSS INCOME IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED,
WITH THE MODIFICATIONS IN SUBSECTION (B) OF SECTION SIX HUNDRED TWELVE
OF THIS ARTICLE BUT WITHOUT THE MODIFICATIONS IN SUBSECTION (C) OF SUCH
SECTION, PLUS ANY PORTION OF THE GAIN FROM THE SALE OR EXCHANGE OF PROP-
ERTY OTHERWISE EXCLUDED FROM SUCH AMOUNT; EARNED INCOME FROM SOURCES
WITHOUT THE UNITED STATES EXCLUDABLE FROM FEDERAL GROSS INCOME BY
SECTION NINE HUNDRED ELEVEN OF THE INTERNAL REVENUE CODE; SUPPORT MONEY
NOT INCLUDED IN ADJUSTED GROSS INCOME; NONTAXABLE STRIKE BENEFITS;
SUPPLEMENTAL SECURITY INCOME PAYMENTS; THE GROSS AMOUNT OF ANY PENSION
OR ANNUITY BENEFITS TO THE EXTENT NOT INCLUDED IN SUCH ADJUSTED GROSS
INCOME (INCLUDING, BUT NOT LIMITED TO, RAILROAD RETIREMENT BENEFITS AND
ALL PAYMENTS RECEIVED UNDER THE FEDERAL SOCIAL SECURITY ACT AND VETER-
ANS' DISABILITY PENSIONS); NONTAXABLE INTEREST RECEIVED FROM THE STATE
OF NEW YORK, ITS AGENCIES, INSTRUMENTALITIES, PUBLIC CORPORATIONS, OR
POLITICAL SUBDIVISIONS (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT
TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA); WORKERS' COMPEN-
SATION; THE GROSS AMOUNT OF "LOSS-OF-TIME" INSURANCE; AND THE AMOUNT OF
CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE FOR THE
NEEDY, PAID TO OR FOR THE BENEFIT OF THE QUALIFIED TAXPAYER OR MEMBERS
OF HIS HOUSEHOLD. HOUSEHOLD GROSS INCOME SHALL NOT INCLUDE SURPLUS FOODS
OR OTHER RELIEF IN KIND OR PAYMENTS MADE TO INDIVIDUALS BECAUSE OF THEIR
STATUS AS VICTIMS OF NAZI PERSECUTION AS DEFINED IN P.L. 103-286.
PROVIDED, FURTHER, HOUSEHOLD GROSS INCOME SHALL ONLY INCLUDE ALL SUCH
INCOME RECEIVED BY ALL MEMBERS OF THE HOUSEHOLD WHILE MEMBERS OF SUCH
HOUSEHOLD.
(D) "RESIDENCE" MEANS A DWELLING IN THIS STATE, WHETHER OWNED OR RENT-
ED.
(E) "ELIGIBLE EXPENSES" MEANS PAYMENTS MADE BY A QUALIFIED TAXPAYER
FOR THE FOLLOWING GOODS AND SERVICES DELIVERED AND USED AT HIS OR HER
PRIMARY RESIDENCE:
(I) RESIDENTIAL GAS, ELECTRIC AND STEAM UTILITY SERVICE WHICH IS
SUBJECT TO THE PROVISIONS OF ARTICLE TWO OF THE PUBLIC SERVICE LAW;
(II) RESIDENTIAL WATER AND SEWER SERVICE;
(III) HOME HEATING FUEL, WHICH SHALL INCLUDE FUEL OIL, COAL, WOOD,
PROPANE, NATURAL GAS, ELECTRICITY, STEAM, KEROSENE AND ANY OTHER FUEL
WHEN USED FOR RESIDENTIAL HEATING PURPOSES; AND
(IV) TELECOMMUNICATIONS SERVICES AS DEFINED IN PARAGRAPH (G) OF SUBDI-
VISION ONE OF SECTION ONE HUNDRED EIGHTY-SIX-E OF THIS CHAPTER, AND
SHALL NOT INCLUDE WIRELESS COMMUNICATIONS SERVICE, AS DEFINED BY SUBDI-
VISION TEN OF SECTION THREE HUNDRED ONE OF THE COUNTY LAW, UNLESS SUCH
WIRELESS SERVICE IS THE ONLY MEANS BY WHICH THE QUALIFIED TAXPAYER
RECEIVES TELEPHONIC SERVICES.
(2) COMPUTATION OF CREDIT. FOR TAXABLE YEARS BEGINNING ON AND AFTER
JANUARY FIRST, TWO THOUSAND FIFTEEN, A QUALIFIED TAXPAYER SHALL BE
ALLOWED A CREDIT, TO BE CREDITED AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE. THE AMOUNT OF THE CREDIT SHALL BE ONE-HALF OF ALL ELIGIBLE EXPENSES
PAID BY THE QUALIFIED TAXPAYER TO THE EXTENT SUCH EXPENSES EXCEED SEVEN
PERCENT OF THE QUALIFIED TAXPAYER'S HOUSEHOLD GROSS INCOME. SUCH CREDIT
S. 4209 164
SHALL BE REDUCED BY THE AMOUNT OF ANY MONEYS RECEIVED BY THE QUALIFIED
TAXPAYER PURSUANT TO THE LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM
ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN OF THE SOCIAL SERVICES LAW.
(3) OVERPAYMENT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS
SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE QUALIFIED TAXPAYER'S
TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX
TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH SECTION SIX HUNDRED EIGHT-
Y-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID
THEREON.
S 2. This act shall take effect immediately.
PART VVV
Section 1. The general municipal law is amended by adding a new
section 3-e to read as follows:
S 3-E. LIMITATION UPON REAL PROPERTY TAX LEVIES BY CITIES HAVING A
POPULATION OF ONE MILLION OR MORE. 1. UNLESS OTHERWISE PROVIDED BY LAW,
THE AMOUNT OF REAL PROPERTY TAXES THAT MAY BE LEVIED BY OR ON BEHALF OF
ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE SHALL NOT EXCEED THE
TAX LEVY LIMITATION ESTABLISHED PURSUANT TO THIS SECTION.
2. WHEN USED IN THIS SECTION:
(A) "ALLOWABLE LEVY GROWTH FACTOR" SHALL BE THE LESSER OF: (I) ONE AND
TWO ONE-HUNDREDTHS; OR (II) THE SUM OF ONE PLUS THE INFLATION FACTOR;
PROVIDED, HOWEVER, THAT IN NO CASE SHALL THE LEVY GROWTH FACTOR BE LESS
THAN ONE.
(B) "APPROVED CAPITAL EXPENDITURES" MEANS THE EXPENDITURES ASSOCIATED
WITH CAPITAL PROJECTS THAT HAVE BEEN APPROVED BY THE QUALIFIED VOTERS OF
THE LOCAL GOVERNMENT.
(C) "AVAILABLE CARRYOVER" MEANS THE SUM OF THE AMOUNT BY WHICH THE TAX
LEVY FOR THE PRIOR FISCAL YEAR WAS BELOW THE TAX LEVY LIMIT FOR SUCH
FISCAL YEAR, IF ANY, BUT NO MORE THAN ONE AND ONE-HALF PERCENT OF THE
TAX LEVY LIMIT FOR SUCH FISCAL YEAR.
(D) "CAPITAL TAX LEVY" MEANS THE TAX LEVY NECESSARY TO SUPPORT CAPITAL
EXPENDITURES, IF ANY.
(E) "COMING FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
FOR WHICH A TAX LEVY LIMITATION SHALL BE DETERMINED PURSUANT TO THIS
SECTION.
(F) "INFLATION FACTOR" MEANS THE QUOTIENT OF: (I) THE AVERAGE OF THE
NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPART-
MENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE
START OF THE COMING FISCAL YEAR MINUS THE AVERAGE OF THE NATIONAL
CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPARTMENT OF
LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE START
OF THE PRIOR FISCAL YEAR, DIVIDED BY: (II) THE AVERAGE OF THE NATIONAL
CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPARTMENT OF
LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE START
OF THE PRIOR FISCAL YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
PLACES.
(G) "LOCAL GOVERNMENT" MEANS A CITY HAVING A POPULATION OF ONE MILLION
OR MORE.
(H) "PRIOR FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
IMMEDIATELY PRECEDING THE COMING FISCAL YEAR.
(I) "TAX LEVY LIMITATION" MEANS THE AMOUNT OF TAXES A LOCAL GOVERNMENT
IS AUTHORIZED TO LEVY PURSUANT TO THIS SECTION, PROVIDED, HOWEVER, THAT
THE TAX LEVY LIMIT SHALL NOT INCLUDE THE LOCAL GOVERNMENT'S APPROVED
CAPITAL TAX LEVY, IF ANY.
S. 4209 165
3. (A) BEGINNING WITH THE FISCAL YEAR THAT BEGINS IN TWO THOUSAND
FIFTEEN, NO LOCAL GOVERNMENT SHALL ADOPT A BUDGET THAT REQUIRES A TAX
LEVY THAT IS GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL
YEAR.
(B) THE STATE COMPTROLLER SHALL CALCULATE THE TAX LEVY LIMITATION FOR
EACH LOCAL GOVERNMENT BY THE ONE HUNDRED TWENTIETH DAY PRECEDING THE
COMMENCEMENT OF EACH LOCAL GOVERNMENT'S FISCAL YEAR, AND SHALL NOTIFY
EACH LOCAL GOVERNMENT OF THE TAX LEVY LIMITATION SO DETERMINED.
(C) THE TAX LEVY LIMITATION APPLICABLE TO THE COMING FISCAL YEAR SHALL
BE DETERMINED AS FOLLOWS:
(I) ASCERTAIN THE TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR FISCAL
YEAR.
(II) ADD ANY PAYMENTS IN LIEU OF TAXES THAT WERE RECEIVABLE IN THE
PRIOR FISCAL YEAR.
(III) SUBTRACT THE APPROVED CAPITAL TAX LEVY FOR THE PRIOR FISCAL
YEAR, IF ANY.
(IV) SUBTRACT THE LEVY ATTRIBUTABLE TO A LARGE LEGAL SETTLEMENT OF A
TORT ACTION EXCLUDED FROM THE LEVY LIMITATION IN THE PRIOR FISCAL YEAR,
IF ANY.
(V) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
(VI) SUBTRACT ANY PAYMENTS IN LIEU OF TAXES RECEIVABLE IN THE COMING
FISCAL YEAR.
(VII) ADD THE AVAILABLE CARRYOVER, IF ANY.
(D) IN THE EVENT THE CITY COUNCIL OF A LOCAL GOVERNMENT HAS APPROVED A
LEGAL SETTLEMENT OF A TORT ACTION AGAINST THE GOVERNMENT, THE ANNUAL
COSTS OF WHICH EXCEED TEN PERCENT OF THE PROPERTY TAXES LEVIED BY THE
LOCAL GOVERNMENT IN THE PRIOR FISCAL YEAR, THE STATE COMPTROLLER, UPON
APPLICATION BY THE LOCAL GOVERNMENT, MAY ADJUST THE TAX LEVY LIMITATION
FOR THE COMING FISCAL YEAR APPLICABLE TO SUCH LOCAL GOVERNMENT, BY
ADDING THE ANNUAL COSTS OF SUCH SETTLEMENT TO THE TAX LEVY LIMITATION.
(E) THE STATE COMPTROLLER SHALL DETERMINE THE PORTION OF THE TAX LEVY
OF EACH LOCAL GOVERNMENT THAT IS ATTRIBUTABLE TO ANY INCREASE OR
DECREASE OVER THE PRIOR YEAR IN THE COST OF THE LOCAL GOVERNMENT SHARE
OF DIRECT CASH ASSISTANCE TO PERSONS ELIGIBLE FOR THE FEDERAL-STATE-LO-
CAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES PROGRAM OR THE STATE-LOCAL
SAFETY NET ASSISTANCE PROGRAM AND SHALL ADJUST THE TAX LEVY LIMITATION
FOR SUCH LOCAL GOVERNMENT TO REFLECT SUCH CHANGE.
4. A LOCAL GOVERNMENT MAY ADOPT A BUDGET THAT REQUIRES A TAX LEVY THAT
IS GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL YEAR ONLY
IF THE CITY COUNCIL OF SUCH LOCAL GOVERNMENT FIRST ENACTS, BY A
TWO-THIRDS VOTE OF THE TOTAL VOTING POWER OF SUCH CITY COUNCIL, A LOCAL
LAW TO OVERRIDE SUCH LIMITATION FOR SUCH COMING FISCAL YEAR ONLY.
5. IN THE EVENT A LOCAL GOVERNMENT'S ACTUAL TAX LEVY FOR A GIVEN
FISCAL YEAR EXCEEDS THE MAXIMUM ALLOWABLE LEVY AS ESTABLISHED PURSUANT
TO THIS SECTION DUE TO CLERICAL OR TECHNICAL ERRORS, THE LOCAL GOVERN-
MENT SHALL PLACE THE EXCESS AMOUNT OF THE LEVY IN RESERVE IN ACCORDANCE
WITH SUCH REQUIREMENTS AS THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL
USE SUCH FUNDS AND ANY INTEREST EARNED THEREON TO OFFSET THE TAX LEVY
FOR THE ENSUING FISCAL YEAR.
S 2. Paragraphs j and k of subdivision 2 of section 23 of the munici-
pal home rule law are relettered paragraphs k and l, and a new paragraph
j is added to read as follows:
J. OVERRIDES THE TAX LEVY LIMITATION APPLICABLE FOR THE COMING FISCAL
YEAR IN ACCORDANCE WITH SECTION THREE-E OF THE GENERAL MUNICIPAL LAW.
S. 4209 166
S 3. This act shall take effect immediately and shall first apply to
the levy of taxes by local governments for the fiscal year that begins
in 2016.
PART WWW
Section 1. Section 1325 of the racing, pari-mutuel wagering and breed-
ing law, as added by chapter 174 of the laws of 2013, is amended to read
as follows:
S 1325. Approval, denial and renewal of employee licenses and regis-
trations. 1. Upon the filing of an application for a casino key employee
license or gaming employee registration required by this article and
after submission of such supplemental information as the commission may
require, the commission shall conduct or cause to be conducted such
investigation into the qualification of the applicant, WHICH SHALL
INCLUDE THE COMPLETION OF A CRIMINAL BACKGROUND CHECK BY THE DIVISION OF
THE STATE POLICE OF SUCH APPLICANT, and the commission shall conduct
such hearings concerning the qualification of the applicant, in accord-
ance with its regulations, as may be necessary to determine qualifica-
tion for such license.
1-A. THE COST OF ANY SUCH BACKGROUND CHECK SHALL BE BORNE BY THE
GAMING FACILITY THAT INITIALLY EMPLOYS OR EXTENDS EMPLOYMENT TO A LICEN-
SEE PURSUANT TO THIS TITLE AFTER THE APPROVAL OR RENEWAL OF A LICENSE
PURSUANT TO THIS TITLE AND SHALL BE PAID IN A TIME AND MANNER DETERMINED
BY THE COMMISSION.
2. After such investigation, the commission may either deny the appli-
cation or grant a license to an applicant whom it determines to be qual-
ified to hold such license.
3. The commission shall have the authority to deny any application
pursuant to the provisions of this article following notice and opportu-
nity for hearing.
4. When the commission grants an application, the commission may limit
or place such restrictions thereupon as it may deem necessary in the
public interest.
5. After an application for a casino key employee license is submit-
ted, final action of the commission shall be taken within ninety days
after completion of all hearings and investigations and the receipt of
all information required by the commission.
6. Licenses and registrations of casino key employees and gaming
employees issued pursuant to this article shall remain valid for five
years unless suspended, revoked or voided pursuant to law. Such licenses
and registrations may be renewed by the holder thereof upon application,
on a form prescribed by the commission, and payment of the applicable
fee. Notwithstanding the forgoing, if a gaming employee registrant has
not been employed in any position within a gaming facility for a period
of three years, the registration of that gaming employee shall lapse.
8. The commission shall establish by regulation appropriate fees to be
paid upon the filing of the required applications. Such fees shall be
deposited into the commercial gaming revenue fund.
S 2. This act shall take effect immediately.
PART XXX
Section 1. Clauses (E) and (F) of subparagraph 5 of paragraph b of
subdivision 1 of section 1016 of the racing, pari-mutuel wagering and
breeding law are REPEALED.
S. 4209 167
S 2. Section 1017 of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws of 2008 and subdivision 2 as
amended by chapter 174 of the laws of 2013, is amended to read as
follows:
S 1017. Out-of-state or out-of-country races. [1.] Licensed simulcast
facilities may accept wagers and display the signal of out-of-state or
out-of-country thoroughbred tracks after 7:30 P.M. in accordance with
the provisions of this section. Such simulcasting may include mixed
meetings if such meetings are integral to such racing programs and all
such wagering on such races shall be construed to be thoroughbred races.
For facilities located within the special betting district, such
approval shall also be required from a thoroughbred racing corporation
during the period a racing program is being conducted at such track.
Such approval shall not be required on any day such thoroughbred racing
corporation is also accepting an out-of-state or out-of-country signal
and wager, as authorized by this section. The provisions of section one
thousand sixteen of this article shall be applicable to the conduct of
such simulcasting and the provisions of clauses (A) and (B) of subpara-
graph four of paragraph b of subdivision one of section one thousand
sixteen of this article shall apply to those facilities licensed in
accordance with sections one thousand eight and one thousand nine of
this article and the provisions of clauses (A) and (B) of subparagraph
six of paragraph b of subdivision one of section one thousand sixteen of
this article shall apply to those facilities licensed in accordance with
section one thousand seven of this article, when such provisions are in
full force and effect pursuant to such section. Provided, however, the
provisions of section one thousand fourteen of this article shall be
applicable to the conduct of such simulcasting, when such provisions are
in full force and effect pursuant to such section.
[2. a. Maintenance of effort. Any off-track betting corporation which
engages in accepting wagers on the simulcasts of thoroughbred races from
out-of-state or out-of-country as permitted under subdivision one of
this section shall submit to the commission, for its approval, a sched-
ule of payments to be made in any year or portion thereof, that such
off-track corporation engages in nighttime thoroughbred simulcasting. In
order to be approved by the commission, the payment schedule shall be
identical to the actual payments and distributions of such payments to
tracks and purses] PURSES made by such off-track corporation pursuant to
the provisions of section one thousand fifteen of this article during
the year two thousand two, as derived from out-of-state harness races
displayed after 6:00 P.M. If approved by the commission, such scheduled
payments shall be made from revenues derived from any simulcasting
conducted pursuant to this section and section one thousand fifteen of
this article.
[b.] Additional payments. During each calendar year, to the extent,
and at such time in the event, that aggregate statewide wagering handle
after 7:30 P.M. on out-of-state and out-of-country thoroughbred races
exceeds one hundred million dollars, each off-track betting corporation
conducting such simulcasting shall pay to its regional harness track or
tracks, an amount equal to two percent of its proportionate share of
such excess handle. In any region where there are two or more regional
harness tracks, such two percent shall be divided between or among the
tracks in a proportion equal to the proportion of handle on live harness
races conducted at such tracks during the preceding calendar year. Fifty
percent of the sum received by each track pursuant to this paragraph
shall be used exclusively for increasing purses, stakes and prizes at
S. 4209 168
that regional harness track. For the purpose of determining whether such
aggregate statewide handle exceeds one hundred million dollars, all
wagering on such thoroughbred races accepted by licensed multi-jurisdic-
tional account wagering providers from customers within New York state
shall be excluded.
S 3. Subdivision 2 of section 529 of the racing, pari-mutuel wagering
and breeding law is amended to read as follows:
2. [Ninety-five percent of the balance of such account remaining
unclaimed as of the last day of February of such year shall be paid to
the state tax commission by March fifteenth. On or before April tenth of
each year the balance of such account and any other unclaimed amounts
received in the course of conducting off-track betting shall be paid by
such corporation to the state tax commission. A penalty of five percent
and interest at the rate of one percent per month from the due date to
the date of payment of the unclaimed balance due March fifteenth or
April tenth, as the case may be, shall be payable in case such balance
is not paid when due. Such amounts, interest and penalties when
collected by the state tax commission shall be deposited into the gener-
al fund of the state treasury.] ON APRIL FIRST OF EACH YEAR, THE AMOUNT
OF TICKET REMAINING UNCLAIMED FROM THE PRIOR YEAR MAY BE USED FOR CORPO-
RATE PURPOSES.
S 4. Paragraph b of subdivision 3 of section 1009 of the racing, pari-
mutuel wagering and breeding law, as amended by chapter 18 of the laws
of 2008, is amended to read as follows:
b. Letters of consent to the application from any regional track which
is not a party to the operation of the proposed theater unless such
track is located more than [forty] TEN miles from the proposed simulcast
theater; and a copy of any agreement between the applicant and such
corporation pursuant to which such consent has been given, subject to
the provision of subdivision two of section one thousand seven of this
article. Notwithstanding the foregoing, the Nassau region may apply to
locate [one simulcast theater] ANY FAST TRACK BETTING LOCATIONS within
Nassau County without a letter of consent from the operator of the
regional track [provided the proposed simulcast theater is not within
fifteen miles of the closest border of any racing facility operated by a
franchised corporation].
S 5. Section 503 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 14 to read as follows:
14. ON AND AFTER MAY FIRST, TWO THOUSAND FIFTEEN, ANY REGIONAL
OFF-TRACK BETTING CORPORATION WITH A CAPITAL RESERVE FUND IN EXCESS OF
FIVE MILLION DOLLARS SHALL DISBURSE ANY EXCESS FUNDS TO ITS PARTICIPAT-
ING COUNTIES IN PROPORTION TO SUCH COUNTY'S POPULATION MEASURED AGAINST
THE TOTAL POPULATION OF THE REGION.
S 6. Subdivision 1 of section 1012 of the racing, pari-mutuel wagering
and breeding law, as amended by chapter 174 of the laws of 2013, is
amended to read as follows:
1. Racing associations and corporations, franchised corporations,
off-track betting corporations and multi-jurisdictional account wagering
providers may form partnerships, joint ventures, or any other affil-
iations or contractual arrangement in order to further the purposes of
this section. Multi-jurisdictional account wagering providers involved
in such joint affiliations or contractual arrangements shall follow the
same distributional policy with respect to retained commissions [as
their in-state affiliate or contractual partner] A MULTI-JURISDICTIONAL
ACCOUNT WAGERING PROVIDER DEFINED IN THIS ARTICLE; PROVIDED, HOWEVER,
THAT SUCH JOINT AFFILIATION OR CONTRACTUAL ARRANGEMENT ENTERED INTO ON
S. 4209 169
OR AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND
FIFTEEN WHICH AMENDED THIS SUBDIVISION SHALL BE SUBJECT TO THE REVIEW
AND APPROVAL OF THE NEW YORK STATE GAMING COMMISSION TO DETERMINE IF
SUCH AFFILIATION OR CONTRACTUAL ARRANGEMENT IS IN THE BEST INTEREST OF
THE RACING INDUSTRY OF THE STATE.
S 7. This act shall take effect immediately, provided however that
section six of this act shall be deemed to have been in full force and
effect on and after January 1, 2014.
PART YYY
Section 1. The opening paragraph of subdivision 7 of section 221 of
the racing, pari-mutuel wagering and breeding law, as amended by chapter
18 of the laws of 2008, is amended to read as follows:
In order to pay the costs of the insurance required by this section
and by the workers' compensation law and to carry out its other powers
and duties and to pay for any of its liabilities under section four-
teen-a of the workers' compensation law, the New York Jockey Injury
Compensation Fund, Inc. shall ascertain the total funding necessary and
establish the sums that are to be paid by all owners and trainers
licensed or required to be licensed under section two hundred twenty of
this article, to obtain the total funding amount required annually. In
order to provide that any sum required to be paid by an owner or trainer
is equitable, the fund shall establish payment schedules which reflect
such factors as are appropriate, including where applicable, the
geographic location of the racing corporation at which the owner or
trainer participates, the duration of such participation, the amount of
any purse earnings, the number of horses involved, or such other factors
as the fund shall determine to be fair, equitable and in the best inter-
ests of racing. In no event shall the amount deducted from an owner's
share of purses exceed [one] TWO per centum. THE AMOUNT DEDUCTED FROM AN
OWNER'S SHARE OF PURSES SHALL NOT EXCEED ONE PER CENTUM AFTER APRIL
FIRST, TWO THOUSAND SEVENTEEN. In the cases of multiple ownerships and
limited racing appearances, the fund shall equitably adjust the sum
required.
S 2. This act shall take effect immediately.
PART ZZZ
Section 1. Clause (E) of subparagraph 5 and clause (G) of subparagraph
6 of paragraph b of subdivision 1 of section 1016 of the racing, pari-
mutuel wagering and breeding law, as amended by chapter 18 of the laws
of 2008, are amended to read as follows:
(E) On days when a franchised corporation is not conducting a race
meeting and when a licensed harness track is neither accepting wagers
nor displaying the signal from an in-state thoroughbred corporation or
association or an out-of-state thoroughbred track:
(i) Such licensed regional harness track shall receive in lieu of any
other payments on wagers placed at off-track betting facilities outside
the special betting district on races conducted by an in-state thorough-
bred racing corporation, [two and eight-tenths] ONE AND FOUR-TENTHS
percent on regular and multiple bets during a regional meeting and [one
and nine-tenths] NINETY-FIVE HUNDREDTHS percent of such bets if there is
no regional meeting and [four and eight-tenths] TWO AND FOUR-TENTHS
percent on exotic bets on days on which there is a regional meeting and
S. 4209 170
[three and four-tenths] ONE AND SEVEN-TENTHS percent of such bets if
there is no regional meeting.
(ii) Such licensed regional harness track shall receive [one and one-
half] SEVENTY-FIVE HUNDREDTHS per centum on total regional handle on
races conducted at out-of-state or out-of-country thoroughbred tracks.
(iii) In those regions in which there is more than one licensed
regional harness track, if no track is accepting wagers or displaying
the live simulcast signal from the out-of-state track, the total sum
shall be divided among the tracks in proportion to the ratio the wagers
placed on races conducted by each track bears to the corporation's total
in-region harness handle. If one or more tracks are accepting wagers or
displaying the live simulcast signal, the total amount shall be divided
among those tracks not accepting wagers or displaying the simulcast
signal for an out-of-state track or in-state thoroughbred corporation or
association.
(G) Of the sums retained by a licensed harness facility, [fifty] ONE
HUNDRED percent shall be used exclusively for purses awarded in races
conducted by such licensed facility [and the remaining fifty percent
shall be retained by such licensed facility for its general purposes,
provided, however, that in a harness special betting district the
portion of the sums retained by a licensed harness facility to be used
for purses or the methodology for calculating the amount to be used for
purses may be specified in a written contract between a harness racing
association or corporation and its representative horsemen's associ-
ation].
S 2. This act shall take effect immediately.
PART AAAA
Section 1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi-
sion b of section 1612 of the tax law, as amended by section 1 of part Z
of chapter 59 of the laws of 2014, is amended to read as follows:
(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 [seven] EIGHT years commencing April first,
two thousand eight, be at a rate of 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.
S 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2015.
PART BBBB
Section 1. The section heading of section 467-b of the real property
tax law, as amended by section 1 of chapter 188 of the laws of 2005, is
amended to read as follows:
Tax abatement for rent-controlled and rent regulated property occupied
by senior citizens or persons with disabilities OR PERSONS PAYING A
MAXIMUM RENT OR LEGAL REGULATED RENT WHICH EXCEEDS ONE-HALF OF THE
COMBINED INCOME OF ALL MEMBERS OF THEIR HOUSEHOLD.
S 2. Paragraph b of subdivision 1 of section 467-b of the real proper-
ty tax law, as amended by section 1 of chapter 188 of the laws of 2005,
is amended to read as follows:
S. 4209 171
b. "Head of the household" means a person (i) who is sixty-two years
of age or older, or (ii) who qualifies as a person with a disability
pursuant to subdivision five of this section, OR (III) WHO PAYS A MAXI-
MUM RENT OR LEGAL REGULATED RENT WHICH EXCEEDS ONE-HALF OF THE COMBINED
INCOME OF ALL MEMBERS OF THEIR HOUSEHOLD, and is entitled to the
possession or to the use or occupancy of a dwelling unit;
S 3. Subdivision 2 of section 467-b of the real property tax law, as
amended by chapter 747 of the laws of 1985, is amended to read as
follows:
2. The governing body of any municipal corporation is hereby author-
ized and empowered to adopt, after public hearing, in accordance with
the provisions of this section, a local law, ordinance or resolution
providing for the abatement of taxes of said municipal corporation
imposed on real property containing a dwelling unit as defined herein by
one of the following amounts: (a) where the head of the household does
not receive a monthly allowance for shelter pursuant to the social
services law, an amount not in excess of that portion of any increase in
maximum rent or legal regulated rent which causes such maximum rent or
legal regulated rent to exceed one-third of the combined income of all
members of the household; or
(b) WHERE THE HEAD OF THE HOUSEHOLD QUALIFIES AS A PERSON PAYING A
MAXIMUM RENT OR LEGAL REGULATED RENT WHICH EXCEEDS ONE-HALF OF THE
COMBINED INCOME OF ALL MEMBERS OF THE HOUSEHOLD AND DOES NOT RECEIVE A
MONTHLY ALLOWANCE FOR SHELTER PURSUANT TO THE SOCIAL SERVICES LAW, AN
AMOUNT NOT IN EXCESS OF THAT PORTION OF ANY INCREASE IN MAXIMUM RENT OR
LEGAL REGULATED RENT WHICH CAUSES SUCH MAXIMUM RENT OR LEGAL REGULATED
RENT TO EXCEED ONE-HALF OF THE COMBINED INCOME OF ALL MEMBERS OF THE
HOUSEHOLD; OR
(C) where the head of the household receives a monthly allowance for
shelter pursuant to the social services law, an amount not in excess of
that portion of any increase in maximum rent or legal regulated rent
which is not covered by the maximum allowance for shelter which such
person is entitled to receive pursuant to the social services law.
S 4. Paragraph a of subdivision 3 of section 467-b of the real proper-
ty tax law, as amended by section 1 of part U of chapter 55 of the laws
of 2014, is amended to read as follows:
a. for a dwelling unit where the head of the household is a person
sixty-two years of age or older OR WHERE THE HEAD OF THE HOUSEHOLD PAYS
A MAXIMUM RENT OR LEGAL REGULATED RENT WHICH EXCEEDS ONE-HALF OF THE
COMBINED INCOME OF ALL MEMBERS OF THE HOUSEHOLD, no tax abatement shall
be granted if the combined income of all members of the household for
the income tax year immediately preceding the date of making application
exceeds four thousand dollars, or such other sum not more than twenty-
five thousand dollars beginning July first, two thousand five, twenty-
six thousand dollars beginning July first, two thousand six, twenty-sev-
en thousand dollars beginning July first, two thousand seven,
twenty-eight thousand dollars beginning July first, two thousand eight,
twenty-nine thousand dollars beginning July first, two thousand nine,
and fifty thousand dollars beginning July first, two thousand fourteen,
as may be provided by the local law, ordinance or resolution adopted
pursuant to this section, provided that when the head of the household
retires before the commencement of such income tax year and the date of
filing the application, the income for such year may be adjusted by
excluding salary or earnings and projecting his or her retirement income
over the entire period of such year.
S. 4209 172
S 5. Paragraph d of subdivision 1 of section 467-c of the real proper-
ty tax law, as separately amended by chapters 188 and 205 of the laws of
2005, and subparagraph 1 of paragraph d as amended by section 2 of part
U of chapter 55 of the laws of 2014, is amended to read as follows:
d. "Eligible head of the household" means (1) a person or his or her
spouse who is sixty-two years of age or older, OR A PERSON WHO PAYS A
MAXIMUM RENT WHICH EXCEEDS ONE-HALF OF THE COMBINED INCOME OF ALL
MEMBERS OF THE HOUSEHOLD, and is entitled to the possession or to the
use and occupancy of a dwelling unit, provided, however, with respect to
a dwelling which was subject to a mortgage insured or initially insured
by the federal government pursuant to section two hundred thirteen of
the National Housing Act, as amended "eligible head of the household"
shall be limited to that person or his or her spouse who was entitled to
possession or the use and occupancy of such dwelling unit at the time of
termination of such mortgage, and whose income when combined with the
income of all other members of the household, does not exceed six thou-
sand five hundred dollars for the taxable period, or such other sum not
less than sixty-five hundred dollars nor more than twenty-five thousand
dollars beginning July first, two thousand five, twenty-six thousand
dollars beginning July first, two thousand six, twenty-seven thousand
dollars beginning July first, two thousand seven, twenty-eight thousand
dollars beginning July first, two thousand eight, twenty-nine thousand
dollars beginning July first, two thousand nine, and fifty thousand
dollars beginning July first, two thousand fourteen, as may be provided
by local law; or (2) a person with a disability as defined in this
subdivision.
S 6. Subparagraph (1) of paragraph a of subdivision 3 of section 467-c
of the real property tax law, as amended by chapter 747 of the laws of
1985, is amended to read as follows:
(1) where the eligible head of the household WHO IS EITHER SIXTY-TWO
YEARS OF AGE OR OLDER OR IS DISABLED does not receive a monthly allow-
ance for shelter pursuant to the social services law, the amount by
which increases in the maximum rent subsequent to such person's eligi-
bility date have resulted in the maximum rent exceeding one-third of the
combined income of all members of the household for the taxable period,
OR WHERE THE ELIGIBLE HEAD OF THE HOUSEHOLD IS A PERSON WHO PAYS A MAXI-
MUM RENT WHICH EXCEEDS ONE-HALF OF THE COMBINED INCOME OF ALL MEMBERS OF
THE HOUSEHOLD DOES NOT RECEIVE A MONTHLY ALLOWANCE FOR SHELTER PURSUANT
TO THE SOCIAL SERVICES LAW, THE AMOUNT BY WHICH INCREASES IN THE MAXIMUM
RENT SUBSEQUENT TO SUCH PERSON'S DATE HAVE RESULTED IN THE MAXIMUM RENT
EXCEEDING ONE-HALF OF THE COMBINED INCOME OF ALL MEMBERS OF THE HOUSE-
HOLD FOR THE TAXABLE PERIOD, except that in no event shall a rent
increase exemption order/tax abatement certificate become effective
prior to January first, nineteen hundred seventy-six; or
S 7. The state shall reimburse the city of New York and other partic-
ipating municipalities for 10% of the increase between the amount of
real property tax revenue abated for the period beginning July 1, 2015
and ending June 30, 2016 pursuant to the program expansion where the
tenant's maximum rent exceeds one-half of the combined income of house-
hold members as established by sections one through six of this act and
the amount that would have been abated for the period beginning July 1,
2015 and ending June 30, 2016 pursuant to the current provisions that
were in effect immediately prior to the additions provided in this act.
Prior to any payment, the city and any participating municipalities
shall provide attestation to the director of the New York state division
of the budget and the state comptroller as to the increase in the actual
S. 4209 173
amount of real property tax abated as a consequence of sections one
through six of this act. The information contained within such attesta-
tion may be subject to the audit and verification by the state comp-
troller.
S 8. This act shall take effect July 1, 2015; provided however, that
a. the amendments to section 467-b of the real property tax law, made
by sections one, two, three and four of this act shall be subject to the
expiration and reversion of such section pursuant to section 17 of chap-
ter 576 of the laws of 1974, and shall expire and be deemed repealed
therewith;
b. the amendments to paragraph a of subdivision 3 of section 467-b of
the real property tax law, made by section four of this act shall be
subject to the expiration of such paragraph pursuant to section 4 of
part U of chapter 55 of the laws of 2014, as amended, and shall be
deemed to expire therewith; and
c. the amendments to subparagraph (1) of paragraph d of subdivision 1
of section 467-c of the real property tax law, made by section five of
this act shall not affect the expiration of such subparagraph pursuant
to chapter 55 of the laws of 2014 and shall expire and be deemed
repealed therewith.
PART CCCC
Section 1. The real property tax law is amended by adding a new
section 467-i to read as follows:
S 467-I. TENANTS SIXTY-FIVE YEARS OF AGE OR OVER WITHIN MANUFACTURED
HOME PARKS. 1. ANY MUNICIPAL CORPORATION OR SCHOOL DISTRICT WITHIN A
COUNTY WITH A POPULATION BETWEEN ONE MILLION FOUR HUNDRED NINETY THOU-
SAND AND ONE MILLION FIVE HUNDRED THOUSAND BASED UPON THE LATEST DECEN-
NIAL FEDERAL CENSUS SHALL BE AUTHORIZED TO PROVIDE A SENIOR CITIZEN TAX
EXEMPTION PROGRAM FOR SENIOR CITIZENS RESIDING WITHIN MANUFACTURED
HOMES, AS DEFINED BY SECTION TWO HUNDRED THIRTY-THREE OF THE REAL PROP-
ERTY LAW, WITHIN SUCH COUNTY, AFTER A PUBLIC HEARING THEREON, AND UPON
THE ADOPTION OF A LOCAL LAW OR ORDINANCE, OR FOR A SCHOOL DISTRICT UPON
THE ADOPTION OF A RESOLUTION, PROVIDING THEREFOR. SUCH PROGRAMS SHALL
APPLY TO SENIOR CITIZENS SIXTY-FIVE YEARS OF AGE OR OVER, AS DEFINED IN
PARAGRAPH (A) OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF
THIS TITLE, WHO RESIDE IN A MANUFACTURED HOME LOCATED ON LAND FOR WHICH
RESIDENTIAL RENT IS PAID AND WHOSE COMBINED INCOME DOES NOT EXCEED THE
INCOME STANDARD SET FORTH IN PARAGRAPH (B) OF SUBDIVISION FOUR OF
SECTION FOUR HUNDRED TWENTY-FIVE OF THIS TITLE AND WITHIN ANY ADDITIONAL
SPECIFIED LIMITS AS FURTHER ESTABLISHED BY SUCH LAW OR LOCAL ORDINANCE.
SUCH TAX EXEMPTION SHALL INCLUDE A PROPORTIONAL SHARE OF THE INCREASE IN
ANNUAL TAXES LEVIED UPON BUILDINGS AND LAND WITHIN SUCH PARK. THIS
AMOUNT SHALL BE CALCULATED BASED UPON THE PERCENTAGE THAT THE NUMBER OF
HOMES QUALIFYING UNDER THIS SECTION BEARS TO THE TOTAL LOTS WITHIN SUCH
PARK WHICH SHALL BE MULTIPLIED BY THE OVERALL ANNUAL TAX INCREASE ON
BUILDINGS AND LAND CONSTITUTING THE COMMON AREAS OF SUCH PARK.
2. THE ELIGIBLE SENIOR CITIZEN SHALL APPLY EACH YEAR TO QUALIFY FOR
THE EXEMPTION, PRIOR TO THE TAXABLE STATUS DATE PRESCRIBED BY LAW, TO
THE APPROPRIATE LOCAL ASSESSOR FOR A TAX EXEMPTION CERTIFICATE, ON A
FORM PRESCRIBED BY THE COMMISSIONER. IN ORDER TO RECEIVE SUCH
EXEMPTION, EACH APPLICANT MUST SUBMIT, AS PART OF THE APPLICATION PROC-
ESS, AN ACCESSORY AGREEMENT SIGNED BY HIS OR HER MANUFACTURED HOME PARK
LANDLORD, ATTESTING TO THE LANDLORD'S WILLINGNESS TO PARTICIPATE IN THE
PROGRAM. SUCH AGREEMENT SHALL INCLUDE THE LANDLORD'S RESPONSIBILITIES TO
S. 4209 174
(A) REDUCE THE TENANT'S RENT ON A MONTHLY BASIS BY ONE-TWELFTH OF THE
AMOUNT OF THE ANNUAL EXEMPTION GRANTED, (B) REIMBURSE, TO THE RECEIVER
OF TAXES OF THE MUNICIPAL CORPORATION WHICH GRANTED THE EXEMPTION, A
PRO-RATED PORTION OF THE TAX EXEMPTION IF HIS OR HER QUALIFYING TENANT
SHOULD MOVE DURING THE TAXABLE PERIOD, AND (C) PERMIT ALL QUALIFYING
TENANTS TO PARTICIPATE IN THE PROGRAM.
3. A TAX EXEMPTION CERTIFICATE ESTABLISHING THE AMOUNT OF EXEMPTION
FOR THE TAXABLE PERIOD SHALL BE ISSUED TO EACH SENIOR CITIZEN WHO IS
ELIGIBLE BY THE RESPECTIVE LOCAL ASSESSOR UPON REQUEST. COPIES OF THE
CERTIFICATE SHALL BE ISSUED TO THE OWNER OF THE REAL PROPERTY CONTAINING
THE MANUFACTURED HOME OF THE SENIOR CITIZEN AND TO THE RECEIVER OF TAXES
OF EACH MUNICIPALITY WHICH HAS GRANTED THE EXEMPTION OF TAXES. THE
EXEMPTION FOR THE TAX PERIOD SET IN THE TAX EXEMPTION CERTIFICATE SHALL
BE DEDUCTED FROM THE TOTAL TAXES LEVIED BY THE MUNICIPALITY WHICH GRANT-
ED THE EXEMPTION ON REAL PROPERTY CONTAINING THE MANUFACTURED HOME.
4. ANY CONVICTION OF HAVING MADE A WILLFUL FALSE STATEMENT IN THE
APPLICATION FOR EXEMPTION PURSUANT TO THIS SECTION SHALL BE PUNISHABLE
BY A FINE OF NOT MORE THAN ONE HUNDRED DOLLARS AND SHALL DISQUALIFY THE
APPLICANT SENIOR CITIZEN AND/OR HOMEOWNER FROM FURTHER EXEMPTIONS FOR A
PERIOD OF FIVE YEARS.
5. THE PROVISIONS OF THIS SECTION SHALL BE APPLICABLE TO ALL MANUFAC-
TURED HOME UNITS WITHIN A MANUFACTURED HOME PARK WHICH COMPLY WITH ALL
RELEVANT HOUSING CODES, LOCAL LAWS OR ORDINANCES.
6. ANY MUNICIPAL CORPORATION OR SCHOOL DISTRICT WITHIN A COUNTY WITH A
POPULATION BETWEEN ONE MILLION FOUR HUNDRED NINETY THOUSAND AND ONE
MILLION FIVE HUNDRED THOUSAND BASED UPON THE LATEST DECENNIAL FEDERAL
CENSUS THAT ADOPTS SUCH PROGRAM FOR SENIOR CITIZENS RESIDING IN A MANU-
FACTURED HOME PARK SHALL RECEIVE REIMBURSEMENT FOR THE COST OF ADMINIS-
TERING THE PROGRAM FROM THE STATE OF NEW YORK.
S 2. This act shall take effect January 1, 2016 and shall apply to
real property having a taxable status date on or after such effective
date.
PART DDDD
Section 1. Paragraph (b) of subdivision 3 of section 421-m of the real
property tax law, as added by section 43 of part B of chapter 97 of the
laws of 2011, is amended to read as follows:
(b) Such construction or substantial rehabilitation was commenced on
or after the effective date of the local law, ordinance or resolution
described in subdivision one of this section, but no later than June
fifteenth, two thousand [fifteen] EIGHTEEN.
S 2. This act shall take effect immediately.
PART EEEE
Section 1. Paragraph 1 of subsection (e) of section 1310 of the tax
law, as amended by section 3 of part A of chapter 56 of the laws of
1998, is amended to read as follows:
(1) For taxable years beginning after nineteen hundred ninety-seven, a
state school tax reduction credit shall be allowed as provided in the
following tables. The credit shall be allowed against the taxes author-
ized by this article reduced by the credits permitted by this article.
If the credit exceeds the tax as so reduced, the taxpayer may receive,
and the comptroller, subject to a certificate of the commissioner, shall
pay as an overpayment, without interest, the amount of such excess. For
S. 4209 175
purposes of this subsection, no credit shall be granted 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. FOR TAXABLE YEARS BEGINNING IN TWO THOU-
SAND SIXTEEN AND ALL TAXABLE YEARS THEREAFTER, IN ORDER FOR A CITY TO
QUALIFY ITS RESIDENTS TO RECEIVE A CREDIT PURSUANT TO THIS SUBSECTION,
THE BUDGET SO ADOPTED BY SUCH CITY SHALL NOT EXCEED THE TAX LEVY LIMIT
PRESCRIBED BY SECTION THREE-E OF THE GENERAL MUNICIPAL LAW.
S 2. Subparagraphs (A) and (B) of paragraph 2 of subsection (e) of
section 1310 of the tax law, as amended by section 4 of part M of chap-
ter 57 of the laws of 2009, are amended to read as follows:
(A) Married individuals filing joint returns and surviving spouses. In
the case of a husband and wife who make a single return jointly and of a
surviving spouse:
For taxable years beginning: The credit shall be:
in 2001-2005 $125
in 2006 $230
in 2007-2008 $290
in 2009 [and after]- 2014 $125
IN 2015 $184
IN 2016 $186
IN 2017 AND AFTER $214
(B) All others. In the case of an unmarried individual, a head of a
household or a married individual filing a separate return:
For taxable years beginning: The credit shall be:
in 2001-2005 $62.50
in 2006 $115
in 2007-2008 $145
in 2009 [and after]- 2014 $62.50
IN 2015 $92
IN 2016 $94
IN 2017 AND AFTER $107
S 3. This act shall take effect immediately.
PART FFFF
Section 1. Subsection (c) of section 612 of the tax law is amended by
adding a new paragraph 42 to read as follows:
(42) INTEREST ON INDEBTEDNESS INCURRED OR CONTINUED TO PAY TUITION AND
FEES FOR UNDERGRADUATE EDUCATION TO THE EXTENT SUCH INTEREST IS DEDUCT-
IBLE, IN ACCORDANCE WITH 26 U.S.C. S 221, FOR FEDERAL TAX PURPOSES, AND
ONLY WHEN THE TAXPAYER'S FEDERAL ADJUSTED GROSS INCOME IS SEVENTY-FIVE
THOUSAND DOLLARS OR LESS. PROVIDED THAT NO INDIVIDUAL MAY CLAIM THIS
DEDUCTION IF THEY DO NOT COMPLY WITH THE TERMS OF THEIR LOAN REPAYMENT
PLAN.
S 2. This act shall take effect immediately and shall apply to the tax
year in which it takes effect, and all subsequent tax years.
PART GGGG
Section 1. The state finance law is amended by adding a new section
99-w to read as follows:
S 99-W. PUBLIC HOUSING REVITALIZATION FUND. 1. THERE IS HEREBY ESTAB-
LISHED IN THE CUSTODY OF THE STATE COMPTROLLER A SPECIAL REVENUE FUND TO
BE KNOWN AS THE "PUBLIC HOUSING REVITALIZATION FUND".
S. 4209 176
2. THE FUND SHALL CONSIST OF ALL MONEYS APPROPRIATED OR TRANSFERRED
THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW AND ANY OTHER
MONEYS TRANSFERRED THERETO FOR THE PURPOSES OF THE FUND, INCLUDING
MONEYS APPROPRIATED TO THE FUND BY THE CITY OF NEW YORK.
3. MONEYS OF THE FUNDS, UPON APPROPRIATION THEREOF, SHALL BE DISBURSED
BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL TO THE NEW YORK
CITY HOUSING AUTHORITY, IN ACCORDANCE WITH SECTION SEVENTY-SEVEN OF THE
PUBLIC HOUSING LAW, FOR CAPITAL PROJECTS ASSOCIATED WITH THE REPAIR,
RECONSTRUCTION, REHABILITATION AND UPGRADE OF ANY FACILITIES OPERATED BY
SUCH AUTHORITY.
S 2. The public housing law is amended by adding a new section 77 to
read as follows:
S 77. PUBLIC HOUSING REVITALIZATION FUND. 1. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW TO THE CONTRARY, THE COMMISSIONER SHALL MAKE AVAILABLE
TO THE NEW YORK CITY HOUSING AUTHORITY, CONSTITUTED UNDER SECTION FOUR
HUNDRED ONE OF THIS CHAPTER, MONEYS FOR CAPITAL PROJECTS RELATED TO THE
REPAIR, RECONSTRUCTION, REHABILITATION AND UPGRADE OF FACILITIES OWNED
BY THE AUTHORITY IN ORDER TO PREVENT THE FURTHER DETERIORATION OF SUCH
PROJECTS.
2. SUCH MONEYS SHALL BE DISBURSED FROM THE PUBLIC HOUSING REVITALIZA-
TION FUND ESTABLISHED BY SECTION NINETY-NINE-W OF THE STATE FINANCE LAW.
3. PROVIDED, HOWEVER, NO MONEYS SHALL BE DISBURSED FROM SUCH FUND
AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN UNLESS THE COMMISSIONER HAS BY
THAT DATE CERTIFIED TO THE COMPTROLLER THAT HE OR SHE HAS RECEIVED A
REFORM PLAN FROM THE MAYOR OF THE CITY OF NEW YORK, TOGETHER WITH THE
MEMBERS OF THE NEW YORK CITY HOUSING AUTHORITY LAYING OUT A PLAN TO MEET
ITS CAPITAL OBLIGATIONS IN A TIMELY AND COST EFFECTIVE MANNER, INCLUSIVE
OF A SPECIFIC PLAN TO:
A. DECENTRALIZE MAINTENANCE AND REPAIR STAFF AND ENSURE ADEQUATE STAFF
AT EACH PROPERTY;
B. REDESIGN MAINTENANCE AND REPAIR POLICIES TO CUT CRITICAL REPAIR
PROJECT TIMELINES BY FIFTY PERCENT;
C. ENSURE THAT ALL PROCUREMENTS ARE OPEN, TRANSPARENT AND ADHERE TO
PUBLIC AUTHORITIES REFORM ACT BEST PRACTICES, AND SHALL REDUCE THE TIME
TO THE FINAL AWARD BY FIFTY PERCENT;
D. IMPROVE CUSTOMER SERVICE TO PROVIDE A MORE RELIABLE AND
USER-FRIENDLY EXPERIENCE TO BOTH RESIDENTS AND APPLICANTS; AND
E. DEVELOP A LONG-TERM FINANCIAL PLAN, INCLUDING A FIVE-YEAR CAPITAL
PLAN UPDATED BI-ANNUALLY, WITH IDENTIFIED SOURCES OF FUNDING.
4. ANY REFORM PLAN ESTABLISHED PURSUANT TO SUBDIVISION THREE OF THIS
SECTION SHALL BE PROVIDED UPON ADOPTION TO THE MEMBERS OF THE NEW YORK
CITY COUNCIL FOR REVIEW AND COMMENT BY THE RESPECTIVE SUBCOMMITTEE
ASSIGNED TO SUCH AUTHORITY PURSUANT TO SUBDIVISION A OF SECTION TWENTY-
NINE OF THE NEW YORK CITY CHARTER. ADDITIONALLY, SUCH PLAN SHALL BE
PROVIDED UPON ADOPTION TO THE COMMITTEE CHAIR FOR THE NEW YORK STATE
ASSEMBLY STANDING COMMITTEE FOR HOUSING, AND THE COMMITTEE CHAIR FOR THE
NEW YORK STATE SENATE STANDING COMMITTEE FOR HOUSING, CONSTRUCTION AND
COMMUNITY DEVELOPMENT.
S 3. Subdivision a of section 29 of the New York city charter, as
added by a vote of the people of the city of New York at the general
election held in November 1989, is amended to read as follows:
a. The council, acting as a committee of the whole, and each standing
or special committee of the council, through hearings or otherwise:
1. [may] MAY investigate any matters within its jurisdiction relating
to the property, affairs, or government of the city or of any county
within the city, or to any other powers of the council, or to the effec-
S. 4209 177
tuation of the purposes or provisions of this charter or any laws relat-
ing to the city or to any county within the city.
2. [shall] SHALL review on a regular and continuous basis the activ-
ities of the agencies of the city, including their service goals and
performance and management efficiency. Each unit of appropriation in
the adopted budget of the city shall be assigned to a standing commit-
tee. Each standing committee of the council shall hold at least one
hearing each year relating to the activities of each of the agencies
under its jurisdiction.
3. SHALL REVIEW ON A REGULAR AND CONTINUOUS BASIS THE ACTIVITIES OF
ANY PUBLIC AUTHORITY WHERE A MAJORITY OF APPOINTMENTS TO THE BOARD OF
SUCH AUTHORITY ARE MADE BY THE MAYOR OF THE CITY OF NEW YORK, INCLUDING
THE SERVICE GOALS, PERFORMANCE AND MANAGEMENT EFFICIENCY OF SUCH AUTHOR-
ITY. EACH SUCH AUTHORITY SHALL BE ASSIGNED TO A STANDING COMMITTEE. EACH
STANDING COMMITTEE OF THE COUNCIL SHALL HOLD AT LEAST ONE HEARING EACH
YEAR RELATING TO THE ACTIVITIES OF EACH SUCH AUTHORITY UNDER ITS JURIS-
DICTION.
S 4. This act shall take effect immediately; provided however that
sections one and two of this act shall take effect on the one hundred
twentieth day after this act shall become a law; and provided further
that section three of this act shall take effect on the thirtieth day
after it shall have become a law.
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 GGGG this act shall be
as specifically set forth in the last section of such Parts.
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