The New York State Senate

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

    S. 7508                                                  A. 9508

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

                            January 18, 2018
                               ___________

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

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

AN  ACT to amend the vehicle and traffic law and the transportation law,
  in relation to enhancing the ability of the state to enforce state and
  federal law relating to motor carriers,  commercial  drivers  and  bus
  operators and to increase penalties for violations of state law relat-
  ing  thereto  (Part A); to amend the highway law, in relation to road-
  side rest areas (Part B); to amend the transportation law, in relating
  to enhancing the ability of the state to enforce state and federal law
  relating to the safety of rail fixed  guideway  public  transportation
  systems  under the oversight of the public transportation safety board
  (Part C); to amend the public authorities law, in relation  to  agree-
  ments  for  fiber optics (Part D); to amend the transportation law, in
  relation to authorizing the department of transportation to charge one
  hundred twenty dollars for a semi-annual inspection  of  certain  for-
  profit  fleets  (Part E); to amend the highway law and the transporta-
  tion corporations law, in relation to occupancy of the state right  of
  way  for a fee; and to amend the general municipal law, in relation to
  small wireless facilities development (Part F); to amend  the  vehicle
  and  traffic law, in relation to seat belt requirements, proper safety
  restraints for children under the age of 8,  prohibiting  the  use  of
  mobile telephones and portable electronic devices by persons under the
  age  of 18, and permitting junior license holders to operate a vehicle
  in New York City; and to  amend the vehicle and traffic  law  and  the
  public officers law, in relation to authorizing political subdivisions
  and  commuter  railroads  to  establish  demonstration programs and to
  implement railroad grade crossing monitoring systems by means of photo
  devices (Part G); to amend part FF of chapter 55 of the laws  of  2017
  relating  to motor vehicles equipped with autonomous vehicle technolo-
  gy, in relation to  demonstrations  and  tests;  in  relation  to  the
  submission  or reports; and in relation to extending the effectiveness
  thereof; relates to  demonstrations  and  testing  of  motor  vehicles

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12673-01-8

S. 7508                             2                            A. 9508

  equipped  with  autonomous  vehicle  technology; and to repeal section
  1226 of the vehicle and traffic law, relating to control  of  steering
  mechanisms  (Part  H);  to amend the state finance law, in relation to
  removing  the  authorization  for  the  OSC  to  prescribe a reporting
  requirement to the city of New York (Part I); to amend the vehicle and
  traffic law, in relation to establishing a pre-licensing course inter-
  net program; and providing for the  repeal  of  such  provisions  upon
  expiration  thereof (Part J); to amend the vehicle and traffic law, in
  relation to the disposition  of  certain  proceeds  collected  by  the
  commissioner  of  motor  vehicles; to amend the transportation law and
  the tax law, in relation  to  the  disposition  of  certain  fees  and
  assessments;  to  amend  the  state  finance  law,  in relation to the
  special obligation reserve and payment account of the dedicated  high-
  way  and  bridge  trust  fund; to amend the public authorities law, in
  relation to the metropolitan transportation  authority  finance  fund;
  and  to  amend  the state finance law, in relation to the metropolitan
  transportation authority financial assistance fund; to repeal subdivi-
  sion 5 of section 317 of the  vehicle  and  traffic  law  relating  to
  certain assessments charged and collected by the commissioner of motor
  vehicles;  to repeal subdivision 6 of section 423-a of the vehicle and
  traffic law relating to funds collected by  the  department  of  motor
  vehicles  from the sale of certain assets; and to repeal subdivision 4
  of section 94 of the  transportation  law  relating  to  certain  fees
  collected by the commissioner of transportation (Part K); to amend the
  public  authorities  law,  in  relation  to creation of transportation
  improvement subdistricts; and to amend the real property tax  law,  in
  relation  to  authorizing a tax levy to fund certain operations of the
  Metropolitan Transportation Authority (Part L); to  amend  the  public
  authorities  law, in relation to the funding of the capital program of
  the metropolitan transportation  authority  (Part  M);  to  amend  the
  public  authorities  law,  in  relation to acceleration of procurement
  contracts made with foreign enterprises; in relation  to  acceleration
  of  procurements  made  for  smaller purchases; and in relation to the
  modification of service or funding agreements (Part N); to  amend  the
  New  York  state  urban  development  corporation  act, in relation to
  extending certain provisions relating to  the  empire  state  economic
  development  fund  (Part  O);  to amend the chapter 393 of the laws of
  1994, amending the New York state urban development  corporation  act,
  relating  to the powers of the New York state urban development corpo-
  ration to make loans, in relation to the effectiveness  thereof  (Part
  P);  to  amend  the  executive  law, the state finance law, the public
  authorities law, the public buildings  law,  and  the  penal  law,  in
  relation  to the reauthorization of the minority and women-owned busi-
  ness enterprise program; to amend chapter 261 of  the  laws  of  1988,
  amending  the  state  finance  law  and other laws relating to the New
  York state infrastructure fund, in relation to  the  effectiveness  of
  certain  provisions  thereof;  and  to  amend  the  executive  law, in
  relation to establishing the workforce diversity program; and  provid-
  ing for the repeal of certain provisions upon expiration thereof (Part
  Q); to amend the infrastructure investment act, in relation to author-
  ized entities and design-build contracts (Part R); to amend chapter 21
  of the laws of 2003, amending the executive law relating to permitting
  the  secretary  of state to provide special handling for all documents
  filed or issued by the division of corporations and  to  permit  addi-
  tional  levels of such expedited service, in relation to extending the
  expiration date thereof (Part S); to amend  the  business  corporation

S. 7508                             3                            A. 9508

  law,  the cooperative corporations law, the executive law, the general
  associations law, the general  business  law,  the  limited  liability
  company  law, the not-for-profit corporation law, the partnership law,
  the  private  housing  finance law, the arts and cultural affairs law,
  the real property law and the tax law, in relation to streamlining the
  process by which service of process is served against a  corporate  or
  other  entity  with  the  secretary  of  state;  and to repeal certain
  provisions of the real property law  relating  thereto  (Part  T);  to
  amend the general municipal law, in relation to brownfield opportunity
  areas (Part U); to repeal section 159-j of the executive law, relating
  to  the local share requirement for providers under the federal commu-
  nity services block grant program (Part V); to amend the banking  law,
  in relation to student loan servicers (Subpart A); to amend the finan-
  cial services law, in relation to student debt collectors (Subpart B);
  and  to  amend  the education law, in relation to student loan debtors
  (Subpart C)(Part W); to amend chapter 584 of the laws of 2011,  amend-
  ing  the  public  authorities law relating to the powers and duties of
  the dormitory authority of the state  of  New  York  relative  to  the
  establishment of subsidiaries for certain purposes, in relation to the
  effectiveness  thereof  (Part X); to amend part S of chapter 58 of the
  laws of 2016, amending the New York  state  urban  development  corpo-
  ration  act  relating  to transferring the statutory authority for the
  promulgation of marketing orders from the  department  of  agriculture
  and  markets  to  the New York state urban development corporation, in
  relation to the effectiveness thereof (Part  Y);  to  amend  the  real
  property tax law, in relation to the taxation of forest land; to amend
  the  environmental  conservation  law,  in  relation to timber harvest
  notification and the creation  of  forest  protection  and  management
  programs;  and  to  amend  the  state  finance law, in relation to the
  procurement of wood and wood fiber projects (Part  Z);  to  amend  the
  state  finance law and the environmental conservation law, in relation
  to the environmental protection fund,  the  hazardous  waste  remedial
  fund  and  the mitigation and remediation of solid waste sites; and to
  repeal certain provisions of the state finance law  and  the  environ-
  mental conservation law relating thereto (Part AA); to amend the envi-
  ronmental conservation law, in relation to the donation of excess food
  and  recycling  of  food  scraps (Part BB); to amend the environmental
  conservation law, in relation to the Central  Pine  Barrens  area  and
  core  preservation area (Part CC); authorizing utility and cable tele-
  vision assessments to provide funds to the department of  health  from
  cable  television  assessment revenues and to the departments of agri-
  culture and markets,  environmental  conservation,  office  of  parks,
  recreation  and  historic preservation, and state from utility assess-
  ment revenues  (Part  DD);  authorizing  the  New  York  state  energy
  research  and  development  authority  to  finance  a  portion  of its
  research, development and demonstration, policy and planning, and Fuel
  NY programs, as well as the department of environmental conservation's
  climate change program and the department of agriculture and  markets'
  Fuel  NY  program, from an assessment on gas and electric corporations
  (Part EE); to amend the public authorities law, in relation  to  ener-
  gy-related  projects,  programs and services of the power authority of
  the state of New York (Part FF); and to amend the  public  authorities
  law, in relation to the provision of renewable power and energy by the
  power authority of the state of New York (Part GG)

S. 7508                             4                            A. 9508

  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 2018-2019
state fiscal year. Each component is  wholly  contained  within  a  Part
identified as Parts A through GG. The effective date for each particular
provision contained within such Part is set forth in the last section of
such  Part.    Any  provision  in  any  section contained within a Part,
including the effective date of the Part, which makes a reference  to  a
section  "of  this  act",  when  used in connection with that particular
component, shall be deemed  to  mean  and  refer  to  the  corresponding
section of the Part in which it is found. Section three of this act sets
forth the general effective date of this act.

                                 PART A

  Section  1.  Subparagraph  (iii)  of paragraph (b) of subdivision 2 of
section 510 of the vehicle and traffic law, as amended by chapter 349 of
1993, is amended to read as follows:
  (iii) such registrations shall be suspended when necessary  to  comply
with  subdivision  nine of section one hundred forty or subdivision four
of section one hundred forty-five of the transportation law OR  WITH  AN
OUT OF SERVICE ORDER ISSUED BY THE UNITED STATES DEPARTMENT OF TRANSPOR-
TATION. The commissioner shall have the authority to deny a registration
or  renewal application to any other person for the same vehicle and may
deny a registration or renewal application for any other  motor  vehicle
registered  in  the  name  of the applicant where it has been determined
that such registrant's intent has been to evade  the  purposes  of  this
subdivision and where the commissioner has reasonable grounds to believe
that  such registration or renewal will have the effect of defeating the
purposes of this subdivision.  ANY SUSPENSION ISSUED  PURSUANT  TO  THIS
SUBDIVISION  BY  REASON  OF AN OUT OF SERVICE ORDER ISSUED BY THE UNITED
STATES DEPARTMENT OF TRANSPORTATION SHALL REMAIN IN  EFFECT  UNTIL  SUCH
TIME  AS THE COMMISSIONER IS NOTIFIED BY THE UNITED STATES DEPARTMENT OF
TRANSPORTATION OR THE COMMISSIONER  OF  TRANSPORTATION  THAT  THE  ORDER
RESULTING IN THE SUSPENSION IS NO LONGER IN EFFECT.
  §  2. Subdivision 3 of section 145 of the transportation law, as added
by chapter 635 of the laws of 1983, is amended to read as follows:
  3. In addition to, or in lieu of, any  sanctions  set  forth  in  this
section,  the commissioner may, after a hearing, impose a penalty not to
exceed a maximum of five thousand dollars in any one proceeding upon any
person if the commissioner finds that such person or officer,  agent  or
employee  thereof  has  failed  to  comply with the requirements of this
chapter or any rule, regulation or order of the commissioner promulgated
thereunder.  PROVIDED, HOWEVER, THAT THE COMMISSIONER MAY, AFTER A HEAR-
ING, IMPOSE A PENALTY NOT TO EXCEED TEN THOUSAND  DOLLARS  IN  A  SECOND
PROCEEDING  FOR ANOTHER VIOLATION COMMITTED WITHIN EIGHTEEN MONTHS AND A
PENALTY NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS IN A THIRD PROCEEDING
FOR ADDITIONAL VIOLATIONS COMMITTED  WITHIN  EIGHTEEN  MONTHS.  If  such
penalty  is  not  paid  within  four  months,  the amount thereof may be
entered as a judgment in the office of the clerk of the county of Albany
and in any other county in which the person  resides,  has  a  place  of
business  or through which it operates. Thereafter, if said judgment has
not been satisfied within ninety days, any certificate or permit held by
any such person may be revoked upon notice but without a  further  hear-

S. 7508                             5                            A. 9508

ing.  Provided, however, that if a person shall apply for a rehearing of
the determination of the penalty pursuant to the provisions  of  section
eighty-nine  of  this  chapter,  judgment  shall  not be entered until a
determination has been made on the application for a rehearing.  Further
provided  however,  that  if  after a rehearing a penalty is imposed and
such penalty is not paid within four months of the date  of  service  of
the  rehearing  decision, the amount of such penalty may be entered as a
judgment in the office of the clerk of the county of Albany and  in  any
other  county  in  which  the person resides, has a place of business or
through which it operates. Thereafter, if said  judgment  has  not  been
satisfied within ninety days, any certificate or permit held by any such
person may be revoked upon notice but without a further hearing.
  § 3. This act shall take effect immediately.

                                 PART B

  Section  1. Subdivision 3 of section 20 of the highway law, as amended
by chapter 736 of the laws of 1984, is amended to read as follows:
  3. The commissioner may  in  his  discretion  develop  such  sites  by
providing  any or all of the following: a water supply, sanitary facili-
ties, parking space for automobiles or such other COMMERCIAL OR non-com-
mercial facilities as are suitable for  rest  and  relaxation  stops  by
highway  travelers. The commissioner may also permit the installation of
vending machines dispensing such food, drink and other  articles  as  he
deems appropriate or desirable.  Such sites shall be suitably marked and
markings  indicating  their  location may be erected on highways leading
thereto.
  § 2. This act shall take effect immediately.

                                 PART C

  Section 1. Section 217 of the transportation law is amended by  adding
a new subdivision 9 to read as follows:
  9.  TO ENFORCE THE REQUIREMENTS OF SECTION FIVE THOUSAND THREE HUNDRED
TWENTY-NINE OF TITLE FORTY-NINE OF THE UNITED STATES  CODE,  AS  AMENDED
FROM  TIME  TO TIME, AS IT PERTAINS TO RAIL FIXED GUIDEWAY PUBLIC TRANS-
PORTATION SYSTEMS.
  § 2. This act shall take effect immediately.

                                 PART D

  Section 1. Subdivision 6 of section 2897 of the public authorities law
is amended by adding a new paragraph f to read as follows:
  F. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS SECTION,
DISPOSALS FOR USE OF THE NEW YORK STATE THRUWAY AUTHORITY'S FIBER  OPTIC
SYSTEM, OR ANY PART THEREOF, MAY BE MADE THROUGH AGREEMENTS BASED ON SET
FEES RATHER THAN PUBLIC AUCTION OR NEGOTIATION, PROVIDED THAT:
  (I) THE THRUWAY AUTHORITY HAS DETERMINED THE DISPOSAL OF SUCH PROPERTY
COMPLIES WITH ALL APPLICABLE PROVISIONS OF THIS CHAPTER;
  (II)  DISPOSAL OF SUCH PROPERTY IS IN THE BEST INTEREST OF THE THRUWAY
AUTHORITY; AND
  (III) THE SET FEES ESTABLISHED FOR USE OF THE FIBER OPTIC  SYSTEM,  OR
PART  THEREOF, WILL BE BASED ON AN APPRAISAL OF THE FAIR MARKET VALUE OF
THE PROPERTY.
  DISPOSALS OF THE FIBER OPTIC SYSTEM, OR ANY  PART  THEREOF,  WILL  NOT
REQUIRE THE EXPLANATORY STATEMENTS REQUIRED BY THIS SECTION.

S. 7508                             6                            A. 9508

  § 2. This act shall take effect immediately.

                                 PART E

  Section  1.  The transportation law is amended by adding a new section
144 to read as follows:
  § 144. FEES AND CHARGES. THE COMMISSIONER  OR  AUTHORIZED  OFFICER  OR
EMPLOYEE  OF  THE DEPARTMENT SHALL CHARGE AND COLLECT ONE HUNDRED TWENTY
DOLLARS FOR THE INSPECTION OR RE-INSPECTION OF ALL MOTOR VEHICLES TRANS-
PORTING PASSENGERS SUBJECT TO THE DEPARTMENT'S  INSPECTION  REQUIREMENTS
PURSUANT TO SECTION ONE HUNDRED FORTY OF THIS ARTICLE, EXCEPT SUCH MOTOR
VEHICLES  OPERATED  UNDER CONTRACT WITH A MUNICIPALITY TO PROVIDE STATE-
WIDE MASS TRANSPORTATION OPERATING ASSISTANCE ELIGIBLE SERVICE OR  MOTOR
VEHICLES  USED  PRIMARILY  TO  TRANSPORT PASSENGERS PURSUANT TO SUBPARA-
GRAPHS (I), (III) AND (V) OF PARAGRAPH A OF SUBDIVISION TWO  OF  SECTION
ONE HUNDRED FORTY OF THIS ARTICLE. THE DEPARTMENT MAY DENY INSPECTION OF
ANY  MOTOR  VEHICLE  TRANSPORTING PASSENGERS SUBJECT TO THE DEPARTMENT'S
INSPECTION REQUIREMENTS IF SUCH FEE IS NOT PAID WITHIN  NINETY  DAYS  OF
THE DATE NOTED ON THE DEPARTMENT INVOICE.
  § 2. This act shall take effect immediately.

                                 PART F

  Section  1.  The  first  undesignated paragraph of subdivision 24-b of
section 10 of the highway law, as amended by  chapter  155  of  laws  of
1985, is amended to read as follows:
  Have  power,  whenever such commissioner of transportation deems it is
necessary as a result of work of construction, reconstruction or mainte-
nance of  state  highways,  to  provide  for  the  removal,  relocation,
replacement  or  reconstruction  of privately, publicly or cooperatively
owned water, storm and sewer lines and facilities,  facilities  for  the
transmission  and/or distribution of communications, power, electricity,
light, heat, gas, crude products, steam and other  similar  commodities,
municipal  utility  facilities, or facilities of a corporation organized
pursuant to the transportation corporations  law  that  are  located  on
privately  owned  property.  NOTWITHSTANDING  ANY OTHER PROVISION OF ANY
LAW, THE COMMISSIONER OF TRANSPORTATION MAY ENTER INTO AN AGREEMENT WITH
A FIBER OPTIC UTILITY FOR OCCUPANCY OF THE STATE RIGHT OF WAY,  PROVIDED
HOWEVER, ANY PROVIDER OCCUPYING A RIGHT OF WAY IN FULFILLMENT OF A STATE
GRANT AWARD THROUGH THE NEW NY BROADBAND PROGRAM SHALL NOT BE SUBJECT TO
A  FEE  FOR  SUCH OCCUPANCY, AND PROVIDED FURTHER, ANY FEE FOR OCCUPANCY
CHARGED TO A FIBER OPTIC UTILITY SHALL BE PROHIBITED FROM  BEING  PASSED
THROUGH IN WHOLE OR IN PART AS A FEE, CHARGE, INCREASED SERVICE COST, OR
BY ANY OTHER MEANS BY A FIBER OPTIC UTILITY TO ANY PERSON OR ENTITY THAT
CONTRACTS  WITH  SUCH  FIBER  OPTIC  UTILITY  FOR  SERVICE, AND PROVIDED
FURTHER THAT ANY COMPENSATION RECEIVED BY THE  STATE  PURSUANT  TO  SUCH
AGREEMENT  SHALL  BE DEPOSITED BY THE COMPTROLLER INTO THE SPECIAL OBLI-
GATION RESERVE AND PAYMENT ACCOUNT OF THE DEDICATED HIGHWAY  AND  BRIDGE
TRUST  FUND  ESTABLISHED  PURSUANT TO SECTION EIGHTY-NINE-B OF THE STATE
FINANCE LAW. If such work requires  additional  property  or  if  it  is
necessary  that the relocation of such facilities be made to other prop-
erty, he may acquire such property as may be necessary for the  purposes
of  this  subdivision,  in the same manner as other property is acquired
for state highway purposes pursuant to this  chapter,  and  he  and  the
owner  of  such  facilities may enter into a written agreement to convey
such property as deemed necessary for the purposes of  this  subdivision

S. 7508                             7                            A. 9508

to  such  owner  on  terms  beneficial to the state. The expense of such
removal, relocation, replacement or reconstruction and cost of  property
acquisition  shall  be  a  proper charge against funds available for the
construction,  reconstruction  or maintenance of state highways.  Except
when such facilities are owned by a corporation  organized  pursuant  to
the  transportation  corporations  law,  the work of such removal, relo-
cation, replacement or reconstruction shall be performed by contract  in
the  same manner as provided for state highways in article three of this
chapter, or, by the use of departmental  forces  and  equipment  and  of
materials  purchased therefor, unless the commissioner of transportation
consents to having the owner of such facilities provide for the work  of
such  removal,  relocation,  replacement  or reconstruction. In the case
where such facilities are owned by a corporation organized  pursuant  to
the  transportation  corporations  law,  the work of such removal, relo-
cation, replacement or reconstruction shall  be  provided  for  by  such
corporation unless it consents to having the commissioner of transporta-
tion  provide  for  such work to be performed by contract, in accordance
with specifications provided by such corporation, in the same manner  as
provided for state highways in article three of this chapter, or, by the
use  of  departmental  forces  and  equipment and of materials purchased
therefor. Upon the completion of the  work,  such  facilities  shall  be
maintained by the owners thereof.
  §  2.  The  transportation corporations law is amended by adding a new
section 7 to read as follows:
  § 7. AGREEMENT FOR FIBER OPTIC UTILITY OCCUPANCY  OF  STATE  RIGHT  OF
WAY. NOTWITHSTANDING ANY OTHER PROVISION OF ANY LAW, THE COMMISSIONER OF
TRANSPORTATION  MAY  ENTER  INTO AN AGREEMENT WITH A FIBER OPTIC UTILITY
FOR OCCUPANCY OF THE STATE RIGHT OF WAY, PROVIDED HOWEVER, ANY  PROVIDER
OCCUPYING  A  RIGHT OF WAY IN FULFILLMENT OF A STATE GRANT AWARD THROUGH
THE NEW NY BROADBAND PROGRAM SHALL NOT BE SUBJECT  TO  A  FEE  FOR  SUCH
OCCUPANCY,  AND  PROVIDED  FURTHER,  ANY  FEE FOR OCCUPANCY CHARGED TO A
FIBER OPTIC UTILITY SHALL BE PROHIBITED FROM  BEING  PASSED  THROUGH  IN
WHOLE  OR  IN  PART  AS A FEE, CHARGE, INCREASED SERVICE COST, OR BY ANY
OTHER MEANS BY A FIBER OPTIC  UTILITY  TO  ANY  PERSON  OR  ENTITY  THAT
CONTRACTS  WITH  SUCH  FIBER  OPTIC  UTILITY  FOR  SERVICE, AND PROVIDED
FURTHER THAT ANY COMPENSATION RECEIVED BY THE  STATE  PURSUANT  TO  SUCH
AGREEMENT  SHALL  BE DEPOSITED BY THE COMPTROLLER INTO THE SPECIAL OBLI-
GATION RESERVE AND PAYMENT ACCOUNT OF THE DEDICATED HIGHWAY  AND  BRIDGE
TRUST  FUND  ESTABLISHED  PURSUANT TO SECTION EIGHTY-NINE-B OF THE STATE
FINANCE LAW.
  § 3. The general municipal law is amended by adding a new article 13-E
to read as follows:
                              ARTICLE 13-E
                  SMALL WIRELESS FACILITIES DEPLOYMENT
SECTION 300. DEFINITIONS.
        301. USE OF RIGHT OF WAY.
        302. COLLOCATION OF SMALL WIRELESS FACILITIES AND MICRO WIRELESS
               FACILITIES.
        303. ACCESS TO MUNICIPAL CORPORATION STRUCTURES.
        304. LOCAL AUTHORITY
        305. DISPUTE RESOLUTION.
        306. INDEMNIFICATION.
  § 300. DEFINITIONS. FOR THE PURPOSES OF THIS  ARTICLE,  THE  FOLLOWING
TERMS  SHALL  HAVE  THE  FOLLOWING MEANINGS UNLESS THE CONTEXT INDICATES
OTHERWISE:

S. 7508                             8                            A. 9508

  1. "ANTENNA" MEANS COMMUNICATIONS EQUIPMENT THAT TRANSMITS OR RECEIVES
ELECTROMAGNETIC RADIO FREQUENCY SIGNALS USED IN THE PROVISION  OF  WIRE-
LESS SERVICES.
  2. "APPLICABLE CODES" MEANS THE NEW YORK STATE UNIFORM FIRE PREVENTION
AND BUILDING CODE AS ADOPTED, AND AS MAY BE AMENDED, PURSUANT TO ARTICLE
EIGHTEEN OF THE EXECUTIVE LAW.
  3.  "APPLICANT"  MEANS  ANY PERSON OR ENTITY THAT FILES AN APPLICATION
WITH A MUNICIPAL CORPORATION TO INSTALL OR MODIFY WIRELESS FACILITIES ON
BEHALF OF A COMMUNICATIONS SERVICE PROVIDER OR WIRELESS PROVIDER.
  4. "APPLICATION" MEANS A REQUEST SUBMITTED BY AN APPLICANT TO A  LOCAL
GOVERNMENT  FOR  A  PERMIT TO COLLOCATE SMALL WIRELESS FACILITIES; OR TO
APPROVE THE INSTALLATION OR MODIFICATION OF A UTILITY POLE  OR  WIRELESS
SUPPORT STRUCTURE.
  5. "APPLICATION FEE" MEANS THE ONE TIME FEE CHARGED TO AN APPLICANT BY
A  MUNICIPAL  CORPORATION  FOR REVIEW OF AN APPLICATION. THE APPLICATION
FEE MAY NOT EXCEED THE ACTUAL REASONABLE COSTS INCURRED BY THE MUNICIPAL
CORPORATION IN CONNECTION WITH ITS REVIEW OF THE APPLICATION.
  6. "POLE" MEANS: (I) A UTILITY POLE, OTHER THAN  A  UTILITY  POLE  FOR
DESIGNATED SERVICES, OWNED OR OPERATED BY A MUNICIPAL CORPORATION IN THE
RIGHT OF WAY, INCLUDING A UTILITY POLE THAT PROVIDES LIGHTING OR TRAFFIC
CONTROL  FUNCTIONS,  INCLUDING  LIGHT POLES, TRAFFIC SIGNALS, AND STRUC-
TURES FOR SIGNAGE; AND (II) A POLE OR SIMILAR STRUCTURE OWNED  OR  OPER-
ATED  BY  A MUNICIPAL CORPORATION IN THE RIGHT OF WAY THAT SUPPORTS ONLY
WIRELESS FACILITIES.
  7. "BASE STATION" MEANS WIRELESS  FACILITIES  OR  A  WIRELESS  SUPPORT
STRUCTURE  OR  UTILITY POLE THAT CURRENTLY SUPPORTS WIRELESS FACILITIES.
THE  TERM  DOES  NOT  INCLUDE  A  TOWER,  AS  DEFINED  IN  47  U.S.C.  §
1.40001(B)(9), OR ASSOCIATED WIRELESS FACILITIES.
  8.  "COLLOCATE" MEANS TO INSTALL, MOUNT, MAINTAIN, MODIFY, OPERATE, OR
REPLACE WIRELESS FACILITIES ON OR ADJACENT TO A WIRELESS SUPPORT  STRUC-
TURE  OR  UTILITY POLE. THE TERM "COLLOCATION" HAS A CORRESPONDING MEAN-
ING.
  9. "COMMUNICATIONS  SERVICE  PROVIDER"  MEANS  A  CABLE  OPERATOR,  AS
DEFINED  IN  47  U.S.C.  § 522(5); A PROVIDER OF INFORMATION SERVICE, AS
DEFINED IN 47 U.S.C. § 153(24); A TELECOMMUNICATIONS CARRIER, AS DEFINED
IN 47 U.S.C. § 153(51); OR A WIRELESS PROVIDER.
  10. "FCC" MEANS THE FEDERAL COMMUNICATIONS COMMISSION  OF  THE  UNITED
STATES.
  11. "FEE" MEANS A ONE-TIME CHARGE.
  12.  "LAW"  MEANS  FEDERAL,  STATE, OR LOCAL LAW, STATUTE, COMMON LAW,
CODE, RULE, REGULATION, ORDER, OR ORDINANCE.
  13. "MICRO WIRELESS FACILITY" MEANS A WIRELESS FACILITY THAT MEETS THE
FOLLOWING QUALIFICATIONS: (I) IS NOT LARGER IN  DIMENSION  THAN  TWENTY-
FOUR  INCHES  IN  LENGTH,  FIFTEEN INCHES IN WIDTH, AND TWELVE INCHES IN
HEIGHT; AND (II) ANY EXTERIOR ANTENNA IS NO LONGER THAN ELEVEN INCHES.
  14. "PERMIT" MEANS A WRITTEN AUTHORIZATION  REQUIRED  BY  A  MUNICIPAL
CORPORATION  TO  PERFORM  AN ACTION OR INITIATE, CONTINUE, OR COMPLETE A
PROJECT RELATING TO THE INSTALLATION OR MODIFICATION OF WIRELESS FACILI-
TIES.
  15. "PERSON"  MEANS  AN  INDIVIDUAL,  CORPORATION,  LIMITED  LIABILITY
COMPANY,  PARTNERSHIP,  ASSOCIATION, TRUST, OR OTHER ENTITY OR ORGANIZA-
TION.
  16. "RATE" MEANS A RECURRING CHARGE.
  17. "RIGHT OF WAY" OR "ROW" MEANS THE  AREA  ON,  BELOW,  OR  ABOVE  A
PUBLIC  ROADWAY,  HIGHWAY, STREET, SIDEWALK, ALLEY, UTILITY EASEMENT, OR
SIMILAR PROPERTY, BUT NOT INCLUDING A FEDERAL INTERSTATE HIGHWAY.

S. 7508                             9                            A. 9508

  18. "SMALL WIRELESS FACILITY" MEANS A  WIRELESS  FACILITY  THAT  MEETS
BOTH OF THE FOLLOWING QUALIFICATIONS: (I) EACH ANTENNA IS LOCATED INSIDE
AN ENCLOSURE OF NO MORE THAN SIX CUBIC FEET IN VOLUME OR, IN THE CASE OF
AN ANTENNA THAT HAS EXPOSED ELEMENTS, THE ANTENNA AND ALL OF ITS EXPOSED
ELEMENTS  COULD  FIT  WITHIN  AN IMAGINARY ENCLOSURE OF NO MORE THAN SIX
CUBIC FEET; AND (II) ALL OTHER WIRELESS EQUIPMENT  ASSOCIATED  WITH  THE
FACILITY IS CUMULATIVELY NO MORE THAN TWENTY-EIGHT CUBIC FEET IN VOLUME.
THE  FOLLOWING  TYPES OF ASSOCIATED ANCILLARY EQUIPMENT ARE NOT INCLUDED
IN THE CALCULATION OF  EQUIPMENT  VOLUME:  ELECTRIC  METER,  CONCEALMENT
ELEMENTS,  TELECOMMUNICATIONS  DEMARCATION BOX, GROUND-BASED ENCLOSURES,
GROUNDING EQUIPMENT, POWER TRANSFER SWITCH, CUT-OFF SWITCH, AND VERTICAL
CABLE RUNS FOR THE CONNECTION OF POWER AND OTHER SERVICES.
  19. "SUBSTANTIAL MODIFICATION" MEANS A  PROPOSED  MODIFICATION  TO  AN
EXISTING  WIRELESS SUPPORT STRUCTURE OR BASE STATION WHICH WILL SUBSTAN-
TIALLY CHANGE THE PHYSICAL DIMENSIONS OF THE WIRELESS SUPPORT  STRUCTURE
OR  BASE  STATION  UNDER  THE  OBJECTIVE STANDARD FOR SUBSTANTIAL CHANGE
ADOPTED BY THE FEDERAL COMMUNICATIONS COMMISSION PURSUANT TO 47 C.F.R. §
1.40001.
  20. "UTILITY POLE" MEANS A POLE OR SIMILAR STRUCTURE THAT IS  USED  IN
WHOLE  OR  IN  PART BY A COMMUNICATIONS SERVICE PROVIDER OR FOR ELECTRIC
DISTRIBUTION, LIGHTING, TRAFFIC CONTROL, SIGNAGE, OR A SIMILAR FUNCTION.
SUCH TERM SHALL NOT INCLUDE STRUCTURES SUPPORTING ONLY WIRELESS  FACILI-
TIES.
  21.  "UTILITY POLE FOR DESIGNATED SERVICES" MEANS A UTILITY POLE OWNED
OR OPERATED IN THE ROW BY A  MUNICIPAL  CORPORATION,  A  PUBLIC  UTILITY
DISTRICT,  AN ELECTRIC MEMBERSHIP CORPORATION, OR A RURAL ELECTRIC COOP-
ERATIVE THAT IS DESIGNED TO, OR USED IN WHOLE OR IN PART FOR THE PURPOSE
OF CARRYING ELECTRIC DISTRIBUTION LINES OR CABLES OR WIRES FOR  TELECOM-
MUNICATIONS, CABLE, OR ELECTRIC SERVICE.
  22.  "WIRELESS  FACILITY"  MEANS  EQUIPMENT  AT  A FIXED LOCATION THAT
ENABLES WIRELESS COMMUNICATIONS BETWEEN USER EQUIPMENT  AND  A  COMMUNI-
CATIONS  NETWORK,  INCLUDING:  (I)  EQUIPMENT  ASSOCIATED  WITH WIRELESS
COMMUNICATIONS;  AND  (II)  RADIO  TRANSCEIVERS,  ANTENNAS,  COAXIAL  OR
FIBER-OPTIC  CABLE,  REGULAR  AND  BACKUP POWER SUPPLIES, AND COMPARABLE
EQUIPMENT, REGARDLESS OF TECHNOLOGICAL CONFIGURATION. THE TERM  INCLUDES
SMALL  WIRELESS  FACILITIES AND MICRO WIRELESS FACILITIES. THE TERM DOES
NOT INCLUDE THE STRUCTURE OR IMPROVEMENTS ON, UNDER, OR WITHIN WHICH THE
EQUIPMENT IS COLLOCATED. THE TERM DOES NOT INCLUDE: (I) THE STRUCTURE OR
IMPROVEMENTS ON, UNDER, OR WITHIN WHICH THE EQUIPMENT IS COLLOCATED;  OR
(II) COAXIAL OR FIBER-OPTIC CABLE THAT IS BETWEEN WIRELESS STRUCTURES OR
UTILITY  POLES  OR  THAT  IS  OTHERWISE  NOT  IMMEDIATELY ADJACENT TO OR
DIRECTLY ASSOCIATED WITH A PARTICULAR ANTENNA.
  23. "WIRELESS INFRASTRUCTURE PROVIDER" MEANS ANY PERSON,  INCLUDING  A
PERSON  AUTHORIZED  TO  PROVIDE TELECOMMUNICATIONS SERVICE IN THE STATE,
THAT BUILDS OR INSTALLS WIRELESS COMMUNICATION  TRANSMISSION  EQUIPMENT,
WIRELESS  FACILITIES  OR  WIRELESS SUPPORT STRUCTURES, BUT THAT IS NOT A
WIRELESS SERVICES PROVIDER.
  24. "WIRELESS PROVIDER" MEANS A WIRELESS INFRASTRUCTURE PROVIDER OR  A
WIRELESS SERVICES PROVIDER.
  25.  "WIRELESS  SERVICES"  MEANS  ANY  SERVICES,  WHETHER  AT  A FIXED
LOCATION OR MOBILE, PROVIDED USING WIRELESS FACILITIES.
  26. "WIRELESS SERVICES PROVIDER"  MEANS  ANY  PERSON  OR  ENTITY  THAT
PROVIDES WIRELESS SERVICES.
  27.  "WIRELESS SUPPORT STRUCTURE" MEANS A FREESTANDING STRUCTURE, SUCH
AS A MONOPOLE; TOWER, EITHER GUYED OR  SELF-SUPPORTING;  BILLBOARD;  OR,
OTHER  EXISTING  OR PROPOSED STRUCTURE DESIGNED TO SUPPORT OR CAPABLE OF

S. 7508                            10                            A. 9508

SUPPORTING WIRELESS FACILITIES. SUCH TERM SHALL NOT  INCLUDE  A  UTILITY
POLE.
  §  301. USE OF RIGHT OF WAY. 1. APPLICABILITY. THIS SECTION SHALL ONLY
APPLY TO THE ACTIVITIES OF A WIRELESS PROVIDER WITHIN THE RIGHT OF WAY.
  2. EXCLUSIVE USE PROHIBITED. A MUNICIPAL  CORPORATION  MAY  NOT  ENTER
INTO  AN  EXCLUSIVE  ARRANGEMENT WITH ANY PERSON FOR USE OF THE RIGHT OF
WAY FOR THE CONSTRUCTION, OPERATION, MARKETING, OR MAINTENANCE OF  WIRE-
LESS  FACILITIES  OR  WIRELESS  SUPPORT STRUCTURES OR THE COLLOCATION OF
SMALL WIRELESS FACILITIES OR MICRO WIRELESS FACILITIES.
  3. RIGHT OF WAY RATES AND  FEES.  A  MUNICIPAL  CORPORATION  MAY  ONLY
CHARGE A WIRELESS PROVIDER A RATE OR FEE FOR THE USE OF THE RIGHT OF WAY
WITH  RESPECT  TO THE CONSTRUCTION, INSTALLATION, MOUNTING, MAINTENANCE,
MODIFICATION, OPERATION, OR REPLACEMENT OF A WIRELESS FACILITY OR  WIRE-
LESS  SUPPORT  STRUCTURE  IN  THE RIGHT OF WAY, INCLUDING COLLOCATION IN
SUCH RIGHT OF WAY, IF THE MUNICIPAL CORPORATION CHARGES  OTHER  COMMUNI-
CATIONS  SERVICE  PROVIDERS  OR  PUBLICLY, COOPERATIVELY, OR MUNICIPALLY
OWNED UTILITIES FOR THE USE OF THE RIGHT OF WAY. IF A  MUNICIPAL  CORPO-
RATION  IS AUTHORIZED BY APPLICABLE LAW TO CHARGE A RATE OR FEE TO THOSE
PERSONS OR ENTITIES, AND DOES SO, ANY SUCH RATE OR FEE  FOR  A  WIRELESS
PROVIDER MUST BE: (I) LIMITED TO NO MORE THAN THE DIRECT AND ACTUAL COST
OF MANAGING THE RIGHT OF WAY; AND (II) COMPETITIVELY NEUTRAL WITH REGARD
TO OTHER USERS OF THE RIGHT OF WAY, INCLUDING INVESTOR, MUNICIPAL CORPO-
RATION,  OR COOPERATIVELY OWNED ENTITIES. NO RATE OR FEE MAY: (I) RESULT
IN A DOUBLE RECOVERY  WHERE  EXISTING  RATES,  FEES,  OR  TAXES  ALREADY
RECOVER  THE DIRECT AND ACTUAL COSTS OF MANAGING THE RIGHTS OF WAY; (II)
BE IN THE FORM OF A FRANCHISE OR OTHER FEE BASED ON REVENUE OR  CUSTOMER
COUNTS; (III) BE UNREASONABLE OR DISCRIMINATORY; (IV) VIOLATE ANY APPLI-
CABLE  LAW; OR (V) EXCEED AN ANNUAL AMOUNT EQUAL TO TWENTY DOLLARS TIMES
THE NUMBER OF UTILITY POLES OR WIRELESS SUPPORT STRUCTURES IN THE MUNIC-
IPAL CORPORATION'S GEOGRAPHIC JURISDICTION ON WHICH THE WIRELESS PROVID-
ER HAS COLLOCATED A SMALL WIRELESS FACILITY ANTENNA. NOTWITHSTANDING THE
FOREGOING, IN RECOGNITION OF THE PUBLIC BENEFITS OF  THE  DEPLOYMENT  OF
WIRELESS SERVICES, A MUNICIPAL CORPORATION IS PERMITTED, ON A NONDISCRI-
MINATORY  BASIS,  TO REFRAIN FROM CHARGING ANY RATE OR FEE TO A WIRELESS
PROVIDER FOR THE USE OF THE RIGHT OF WAY.
  4. RATE OR FEE ADJUSTMENT. SHOULD  A  MUNICIPAL  CORPORATION  HAVE  AN
EXISTING  RATE  OR  FEE  TO CONSTRUCT, INSTALL, MOUNT, MAINTAIN, MODIFY,
OPERATE, OR REPLACE A WIRELESS FACILITY OR WIRELESS SUPPORT STRUCTURE IN
THE ROW, INCLUDING COLLOCATION IN SUCH ROW, CONTROLLED BY THE  MUNICIPAL
CORPORATION  AND  SUCH RATE OR FEE DOES NOT COMPLY WITH THE REQUIREMENTS
IN SUBDIVISION THREE OF THIS SECTION, NOT LATER THAN SIX MONTHS  FOLLOW-
ING  THE EFFECTIVE DATE OF THIS ARTICLE, THE MUNICIPAL CORPORATION SHALL
IMPLEMENT A REVISED RATE OR FEE TO ENSURE COMPLIANCE WITH SUCH  SUBDIVI-
SION THREE FOR ALL AFFECTED PERSONS.
  5.  RIGHT  OF  ACCESS.  SUBJECT  TO THE PROVISIONS OF THIS SECTION AND
APPROVAL OF AN APPLICATION, IF REQUIRED, A WIRELESS PROVIDER SHALL  HAVE
THE  RIGHT, AS A PERMITTED USE NOT SUBJECT TO ZONING REVIEW OR APPROVAL,
BUT SUBJECT TO THE ISSUANCE OF A PERMIT BY THE MUNICIPAL CORPORATION  AS
PROVIDED   IN   THIS  ARTICLE,  TO  COLLOCATE  WIRELESS  FACILITIES  AND
CONSTRUCT, MODIFY, MAINTAIN, AND OPERATE UTILITY POLES, WIRELESS SUPPORT
STRUCTURES, CONDUIT, CABLE, AND  RELATED  APPURTENANCES  AND  FACILITIES
ALONG,  ACROSS,  UPON, AND UNDER THE ROW. SUCH STRUCTURES AND FACILITIES
SHALL BE SO CONSTRUCTED AND MAINTAINED AS NOT TO OBSTRUCT OR HINDER  THE
USUAL  TRAVEL  OR PUBLIC SAFETY ON SUCH ROW OR OBSTRUCT THE LEGAL USE OF
SUCH ROW BY OTHER UTILITIES. EACH NEW OR MODIFIED UTILITY POLE AND WIRE-
LESS SUPPORT STRUCTURE INSTALLED IN THE ROW SHALL NOT EXCEED THE GREATER

S. 7508                            11                            A. 9508

OF (I) TEN FEET IN HEIGHT ABOVE THE TALLEST  EXISTING  UTILITY  POLE  IN
PLACE  AS  OF  THE  EFFECTIVE  DATE  OF THIS ARTICLE LOCATED WITHIN FIVE
HUNDRED FEET OF THE NEW POLE IN THE SAME ROW; OR (II) FIFTY  FEET  ABOVE
GROUND LEVEL. NEW WIRELESS FACILITIES IN THE ROW MAY NOT EXTEND (I) MORE
THAN  TEN FEET ABOVE AN EXISTING UTILITY POLE OR WIRELESS SUPPORT STRUC-
TURE IN PLACE AS OF THE EFFECTIVE DATE OF THIS ARTICLE;  OR  (II)  ABOVE
THE  HEIGHT  PERMITTED FOR A NEW UTILITY POLE OR WIRELESS SUPPORT STRUC-
TURE UNDER THIS SECTION. NOTWITHSTANDING THE FOREGOING:
  A. SUBJECT TO THIS ARTICLE, A WIRELESS PROVIDER SHALL HAVE  THE  RIGHT
TO  CONSTRUCT,  MODIFY  AND  MAINTAIN  A  UTILITY POLE, WIRELESS SUPPORT
STRUCTURE, OR WIRELESS FACILITY THAT EXCEEDS THESE  SIZE  LIMITS  ALONG,
ACROSS,  UPON  AND  UNDER  THE ROW, SUBJECT TO REVIEW IN ACCORDANCE WITH
APPLICABLE MUNICIPAL ZONING REGULATIONS; AND
  B.  APPLICANTS  SHALL  COMPLY  WITH  NONDISCRIMINATORY  UNDERGROUNDING
REQUIREMENTS  AFTER  OBTAINING  PRIOR ZONING APPROVAL IN AREAS ZONED FOR
SINGLE FAMILY RESIDENTIAL USE, PROVIDED THAT SUCH REQUIREMENTS SHALL NOT
PROHIBIT THE REPLACEMENT OF EXISTING STRUCTURES OR RESULT IN  AN  EFFEC-
TIVE  PROHIBITION  OF  SERVICES.  IN  ALL  OTHER ZONING DISTRICTS, PRIOR
ZONING APPROVAL SHALL NOT BE REQUIRED FOR UNDERGROUNDING NEW INFRASTRUC-
TURE ASSOCIATED WITH SMALL WIRELESS FACILITIES.
  6. NO DISCRIMINATION. THE MUNICIPAL CORPORATION, IN  THE  EXERCISE  OF
ITS  ADMINISTRATION  AND REGULATION RELATED TO THE MANAGEMENT OF THE ROW
MUST BE COMPETITIVELY NEUTRAL WITH REGARD TO OTHER  USERS  OF  THE  ROW,
INCLUDING  THAT  TERMS MAY NOT BE UNREASONABLE OR DISCRIMINATORY AND MAY
NOT VIOLATE ANY APPLICABLE LAW.
  7. DAMAGE AND REPAIR. THE MUNICIPAL CORPORATION MAY REQUIRE A WIRELESS
PROVIDER TO REPAIR ALL DAMAGE TO THE ROW DIRECTLY CAUSED BY  THE  ACTIV-
ITIES  OF  THE WIRELESS PROVIDER, WHILE OCCUPYING, INSTALLING, REPAIRING
OR MAINTAINING WIRELESS  FACILITIES,  WIRELESS  SUPPORT  STRUCTURES,  OR
UTILITY  POLES IN THE ROW AND TO RETURN THE ROW TO ITS FUNCTIONAL EQUIV-
ALENCE BEFORE THE DAMAGE PURSUANT TO THE COMPETITIVELY NEUTRAL,  REASON-
ABLE  REQUIREMENTS  AND  SPECIFICATIONS OF THE MUNICIPAL CORPORATION. IF
THE WIRELESS PROVIDER FAILS TO MAKE THE REPAIRS REASONABLY  REQUIRED  BY
THE MUNICIPAL CORPORATION WITHIN A REASONABLE TIME AFTER WRITTEN NOTICE,
THE MUNICIPAL CORPORATION MAY EFFECT THOSE REPAIRS AND CHARGE THE APPLI-
CABLE PARTY THE REASONABLE, DOCUMENTED ACTUAL COST OF SUCH REPAIRS.
  §  302.  COLLOCATION  OF  SMALL WIRELESS FACILITIES AND MICRO WIRELESS
FACILITIES. 1. APPLICABILITY. THE PROVISIONS OF THIS SECTION SHALL APPLY
TO ACTIVITIES OF A WIRELESS PROVIDER WITHIN OR OUTSIDE OF THE  RIGHT  OF
WAY.
  2.  EXCEPT  AS EXPRESSLY PROVIDED IN THIS ARTICLE, NO MUNICIPAL CORPO-
RATION  MAY  REGULATE,  PROHIBIT  OR  CHARGE  FOR  THE  COLLOCATION   OF
SMALL/MICRO WIRELESS FACILITIES.
  3.  SMALL  WIRELESS  FACILITIES AND MICRO WIRELESS FACILITIES SHALL BE
CLASSIFIED AS PERMITTED  USES  AND  NOT  SUBJECT  TO  ZONING  REVIEW  OR
APPROVAL  IF  THEY ARE COLLOCATED: (I) IN THE RIGHT OF WAY IN ANY ZONING
DISTRICT; OR (II) OUTSIDE THE RIGHT OF WAY IN PROPERTY NOT ZONED  EXCLU-
SIVELY FOR SINGLE FAMILY RESIDENTIAL USE.
  4.  A  MUNICIPAL CORPORATION MAY REQUIRE AN APPLICANT TO OBTAIN ONE OR
MORE PERMITS TO COLLOCATE  A  SMALL  WIRELESS  FACILITY,  PROVIDED  SUCH
PERMITS  ARE  OF  GENERAL  APPLICABILITY AND DO NOT APPLY EXCLUSIVELY TO
WIRELESS FACILITIES. A MUNICIPAL CORPORATION SHALL RECEIVE  APPLICATIONS
FOR,  PROCESS,  AND ISSUE SUCH PERMITS SUBJECT TO THE FOLLOWING REQUIRE-
MENTS: (I) NO MUNICIPAL CORPORATION MAY, DIRECTLY OR INDIRECTLY, REQUIRE
AN APPLICANT TO PERFORM SERVICES UNRELATED TO THE COLLOCATION FOR  WHICH
APPROVAL  IS  SOUGHT,  SUCH  AS  IN-KIND  CONTRIBUTIONS TO THE MUNICIPAL

S. 7508                            12                            A. 9508

CORPORATION, INCLUDING RESERVING FIBER, CONDUIT, OR POLE SPACE  FOR  THE
MUNICIPAL  CORPORATION;  (II)  NO APPLICANT SHALL BE REQUIRED TO PROVIDE
MORE INFORMATION TO OBTAIN A PERMIT THAN COMMUNICATIONS SERVICE  PROVID-
ERS  THAT ARE NOT WIRELESS PROVIDERS; (III) WITHIN TEN DAYS OF RECEIVING
AN APPLICATION, A MUNICIPAL CORPORATION SHALL DETERMINE AND  NOTIFY  THE
APPLICANT  WHETHER  THE  APPLICATION  IS  COMPLETE. IF AN APPLICATION IS
INCOMPLETE, THE MUNICIPAL CORPORATION SHALL SPECIFICALLY  IDENTIFY  WHAT
INFORMATION  IS  MISSING;  (IV)  AN  APPLICATION SHALL BE PROCESSED ON A
NONDISCRIMINATORY BASIS AND SHALL BE DEEMED APPROVED  IF  THE  MUNICIPAL
CORPORATION  FAILS  TO  OTHERWISE APPROVE OR DENY THE APPLICATION WITHIN
SIXTY DAYS OF RECEIPT; AND (V) A MUNICIPAL CORPORATION SHALL APPROVE  AN
APPLICATION  UNLESS  IT  DOES NOT MEET THE REQUIREMENTS OF THIS ARTICLE.
THE MUNICIPAL CORPORATION SHALL  DOCUMENT  THE  BASIS  FOR  ANY  DENIAL,
INCLUDING  THE  SPECIFIC  CODE PROVISIONS ON WHICH THE DENIAL WAS BASED,
AND SEND THE DOCUMENTATION TO THE APPLICANT ON OR  BEFORE  THE  DAY  THE
MUNICIPAL CORPORATION DENIES THE APPLICATION. THE APPLICANT MAY CURE THE
DEFICIENCIES  IDENTIFIED  BY  THE MUNICIPAL CORPORATION AND RESUBMIT THE
APPLICATION WITHIN THIRTY DAYS OF THE DENIAL  WITHOUT  PAYING  AN  ADDI-
TIONAL  APPLICATION FEE. THE MUNICIPAL CORPORATION SHALL APPROVE OR DENY
THE REVISED APPLICATION WITHIN THIRTY DAYS. ANY SUBSEQUENT REVIEW  SHALL
BE  LIMITED  TO  THE DEFICIENCIES CITED IN THE DENIAL; (VI) AN APPLICANT
SEEKING TO COLLOCATE SMALL WIRELESS FACILITIES WITHIN  THE  JURISDICTION
OF  A  SINGLE MUNICIPAL CORPORATION SHALL BE ALLOWED, AT THE APPLICANT'S
DISCRETION, TO FILE A CONSOLIDATED  APPLICATION  AND  RECEIVE  A  SINGLE
PERMIT  FOR THE COLLOCATION OF MULTIPLE SMALL WIRELESS FACILITIES; (VII)
COLLOCATION FOR WHICH A PERMIT HAS BEEN GRANTED  SHALL  COMMENCE  WITHIN
ONE  YEAR  OF APPROVAL AND SHALL BE PURSUED TO COMPLETION; AND (VIII) NO
MUNICIPAL CORPORATION MAY INSTITUTE, EITHER EXPRESSLY  OR  DE  FACTO,  A
MORATORIUM  ON:  A. FILING, RECEIVING, OR PROCESSING APPLICATIONS; OR B.
ISSUING PERMITS OR OTHER APPROVALS, IF ANY, FOR THE COLLOCATION OF SMALL
WIRELESS FACILITIES.
  5. APPLICATION FEES SHALL BE SUBJECT TO  THE  FOLLOWING  REQUIREMENTS:
(I)  A  MUNICIPAL CORPORATION MAY CHARGE AN APPLICATION FEE ONLY IF SUCH
FEE IS REQUIRED FOR SIMILAR TYPES OF COMMERCIAL DEVELOPMENT  WITHIN  THE
MUNICIPAL CORPORATION'S JURISDICTION; (II) A MUNICIPAL CORPORATION SHALL
ONLY  CHARGE A FEE FOR THE ACTUAL, DIRECT, AND REASONABLE COSTS INCURRED
BY THE MUNICIPAL CORPORATION RELATING TO THE GRANTING OR  PROCESSING  OF
AN  APPLICATION.    SUCH FEES SHALL BE REASONABLY RELATED IN TIME TO THE
INCURRING OF SUCH COSTS.   WHERE SUCH COSTS  ARE  ALREADY  RECOVERED  BY
EXISTING  FEES, RATES, OR TAXES PAID BY A WIRELESS PROVIDER, NO APPLICA-
TION FEE SHALL BE ASSESSED TO RECOVER SUCH COSTS; (III) A  FEE  MAY  NOT
INCLUDE:  A.  TRAVEL EXPENSES INCURRED BY A THIRD PARTY IN ITS REVIEW OF
AN APPLICATION; OR B. DIRECT PAYMENT OR  REIMBURSEMENT  OF  THIRD  PARTY
RATES  OR FEES CHARGED ON A CONTINGENCY BASIS OR A RESULT-BASED ARRANGE-
MENT; (IV) IN ANY CONTROVERSY CONCERNING THE APPROPRIATENESS OF  A  FEE,
THE  MUNICIPAL CORPORATION SHALL HAVE THE BURDEN OF PROVING THAT THE FEE
IS REASONABLY RELATED  TO  THE  ACTUAL,  DIRECT,  AND  REASONABLE  COSTS
INCURRED BY THE MUNICIPAL CORPORATION; (V) TOTAL APPLICATION FEES, WHERE
PERMITTED,  SHALL  NOT  EXCEED  THE  LESSER OF THE AMOUNT CHARGED BY THE
MUNICIPAL CORPORATION FOR: A. A BUILDING PERMIT FOR ANY SIMILAR  COMMER-
CIAL  CONSTRUCTION, ACTIVITY, OR LAND USE DEVELOPMENT; OR B. ONE HUNDRED
DOLLARS EACH FOR UP TO FIVE SMALL WIRELESS FACILITIES  ADDRESSED  IN  AN
APPLICATION AND FIFTY DOLLARS FOR EACH ADDITIONAL SMALL WIRELESS FACILI-
TY ADDRESSED IN THE APPLICATION.
  6.  NO  MUNICIPAL  CORPORATION  SHALL REQUIRE AN APPLICATION FOR:  (I)
ROUTINE MAINTENANCE; (II) THE REPLACEMENT OF  WIRELESS  FACILITIES  WITH

S. 7508                            13                            A. 9508

WIRELESS  FACILITIES  THAT ARE SUBSTANTIALLY SIMILAR OR THE SAME SIZE OR
SMALLER; OR (III) THE INSTALLATION, PLACEMENT, MAINTENANCE, OPERATION OR
REPLACEMENT OF MICRO WIRELESS  FACILITIES  THAT  ARE  STRUNG  ON  CABLES
BETWEEN  EXISTING  UTILITY  POLES, IN COMPLIANCE WITH THE NATIONAL ELEC-
TRICAL SAFETY CODE. A MUNICIPAL CORPORATION MAY REQUIRE A PERMIT TO WORK
WITHIN THE RIGHT OF WAY FOR SUCH ACTIVITIES,  IF  APPLICABLE.  ANY  SUCH
PERMITS SHALL BE SUBJECT TO THE REQUIREMENTS OF THIS SECTION.
  §  303. ACCESS TO MUNICIPAL CORPORATION STRUCTURES. 1.  COLLOCATION OF
SMALL WIRELESS FACILITIES ON OR ADJACENT TO MUNICIPAL CORPORATION  POLES
AND  UTILITY  POLES  FOR DESIGNATED SERVICES. (I) EXCLUSIVE ARRANGEMENTS
PROHIBITED.  A PERSON OWNING OR CONTROLLING MUNICIPAL POLES  OR  UTILITY
POLES  FOR  DESIGNATED SERVICES MAY NOT ENTER INTO AN EXCLUSIVE ARRANGE-
MENT WITH ANY PERSON FOR THE RIGHT TO ATTACH  TO  OR  ADJACENT  TO  SUCH
POLES.
  (II)  RATES.  A. THE RATES AND FEES FOR COLLOCATIONS ON OR ADJACENT TO
MUNICIPAL CORPORATION POLES OR UTILITY  POLES  FOR  DESIGNATED  SERVICES
SHALL  BE  NONDISCRIMINATORY  REGARDLESS OF THE SERVICES PROVIDED BY THE
COLLOCATING PERSON; B. THE RATE TO COLLOCATE ON OR ADJACENT  TO  UTILITY
POLES  FOR  DESIGNATED SERVICES MAY NOT EXCEED THE ANNUAL RECURRING RATE
THAT WOULD BE PERMITTED UNDER RULES ADOPTED BY THE FCC UNDER 47 U.S.C. §
224(E) IF THE RATES WERE REGULATED BY THE FCC OR TWENTY DOLLARS PER YEAR
PER WOODEN UTILITY POLE OR TWO  HUNDRED  DOLLARS  PER  YEAR  PER  METAL,
CONCRETE,  OR FIBERGLASS UTILITY POLE, WHICHEVER IS LESS; C. THE RATE TO
COLLOCATE ON MUNICIPAL  CORPORATION  POLES  SHALL  RECOVER  THE  ACTUAL,
DIRECT,  AND REASONABLE COSTS RELATED TO THE APPLICANT'S APPLICATION FOR
AND USE OF SPACE ON THE MUNICIPAL CORPORATION POLE; D. THE TOTAL  ANNUAL
RATE  FOR  COLLOCATIONS  AND ANY ACTIVITIES RELATED TO SUCH COLLOCATIONS
SHALL NOT EXCEED THE LESSER OF  ACTUAL,  DIRECT,  AND  REASONABLE  COSTS
RELATED  TO THE COLLOCATION ON OR ADJACENT TO THE POLE OR TWENTY DOLLARS
PER YEAR PER WOODEN UTILITY POLE OR TWO HUNDRED  DOLLARS  PER  YEAR  PER
METAL,  CONCRETE,  OR  FIBERGLASS UTILITY POLE, WHICHEVER IS LESS; E. IN
ANY CONTROVERSY CONCERNING THE APPROPRIATENESS OF A RATE FOR A MUNICIPAL
CORPORATION'S POLE, THE MUNICIPAL CORPORATION SHALL HAVE THE  BURDEN  OF
PROVING THAT THE RATES ARE REASONABLY RELATED TO THE ACTUAL, DIRECT, AND
REASONABLE  COSTS INCURRED FOR USE OF SPACE ON THE POLE FOR SUCH PERIOD;
F.  SHOULD A MUNICIPAL CORPORATION, MUNICIPALLY-OWNED  OR  OPERATED-PER-
SON,  PUBLIC  UTILITY  DISTRICT,  OR  COOPERATIVE  HAVE AN EXISTING POLE
ATTACHMENT RATE, FEE, OR OTHER  TERM  THAT  DOES  NOT  COMPLY  WITH  THE
REQUIREMENTS  OF  THIS  SECTION, THE MUNICIPAL CORPORATION, MUNICIPALLY-
OWNED OR OPERATED PERSON, PUBLIC UTILITY DISTRICT, OR COOPERATIVE SHALL,
NOT LATER THAN SIX MONTHS FOLLOWING THE EFFECTIVE DATE OF THIS  ARTICLE,
REFORM SUCH RATE, FEE, OR TERM IN COMPLIANCE WITH THIS SUBDIVISION.
  (III) RATES, FEES, AND TERMS TO BE OFFERED. PERSONS OWNING OR CONTROL-
LING  MUNICIPAL  CORPORATION  POLES  AND  UTILITY  POLES  FOR DESIGNATED
SERVICES SHALL OFFER RATES, FEES, AND OTHER TERMS THAT COMPLY  WITH  THE
PROVISION  SET  FORTH  IN THIS SECTION WITHIN THE LATER OF SIX MONTHS OF
THE EFFECTIVE DATE OF THIS ARTICLE OR THREE  MONTHS  AFTER  RECEIVING  A
REQUEST  TO  COLLOCATE  ITS FIRST SMALL WIRELESS FACILITY ON A MUNICIPAL
CORPORATION POLE OR A UTILITY POLE  FOR  DESIGNATED  SERVICES  OWNED  OR
CONTROLLED BY A MUNICIPAL CORPORATION.
  2.  COLLOCATION  ON  OR  ADJACENT  TO  MUNICIPAL  CORPORATION WIRELESS
SUPPORT STRUCTURES AND UTILITY POLES OUTSIDE THE RIGHT OF WAY. A MUNICI-
PAL CORPORATION SHALL AUTHORIZE THE COLLOCATION OF SMALL WIRELESS FACIL-
ITIES AND MICRO WIRELESS FACILITIES ON OR ADJACENT TO  WIRELESS  SUPPORT
STRUCTURES  AND  UTILITY POLES OWNED OR CONTROLLED BY A MUNICIPAL CORPO-
RATION THAT ARE NOT LOCATED WITHIN THE RIGHT OF WAY TO THE  SAME  EXTENT

S. 7508                            14                            A. 9508

THE  MUNICIPAL  CORPORATION  PERMITS ACCESS TO SUCH STRUCTURES FOR OTHER
COMMERCIAL PROJECTS OR USES.  SUCH  COLLOCATIONS  SHALL  BE  SUBJECT  TO
REASONABLE  AND  NONDISCRIMINATORY RATES, FEES, AND TERMS AS PROVIDED IN
AN  AGREEMENT BETWEEN THE MUNICIPAL CORPORATION AND THE WIRELESS PROVID-
ER.
  § 304. LOCAL AUTHORITY. SUBJECT TO THE PROVISIONS OF THIS ARTICLE  AND
APPLICABLE FEDERAL LAW, A MUNICIPAL CORPORATION MAY CONTINUE TO EXERCISE
ZONING,  LAND USE, PLANNING AND PERMITTING AUTHORITY WITHIN ITS TERRITO-
RIAL BOUNDARIES, INCLUDING WITH RESPECT TO  WIRELESS  SUPPORT  STRUCTURE
AND  UTILITY  POLES;  EXCEPT THAT NO MUNICIPAL CORPORATION SHALL HAVE OR
EXERCISE ANY JURISDICTION OR AUTHORITY  OVER  THE  DESIGN,  ENGINEERING,
CONSTRUCTION,  INSTALLATION, OR OPERATION OF ANY SMALL WIRELESS FACILITY
OR MICRO WIRELESS FACILITY LOCATED IN AN INTERIOR STRUCTURE OR UPON  THE
SITE OF ANY CAMPUS, STADIUM, OR ATHLETIC FACILITY NOT OTHERWISE OWNED OR
CONTROLLED  BY  THE  MUNICIPAL  CORPORATION,  OTHER  THAN TO COMPLY WITH
APPLICABLE CODES. NOTHING IN THIS ARTICLE AUTHORIZES THE  STATE  OR  ANY
POLITICAL  SUBDIVISION,  INCLUDING  A  MUNICIPAL CORPORATION, TO REQUIRE
WIRELESS FACILITY DEPLOYMENT OR TO REGULATE WIRELESS SERVICES.
  § 305. DISPUTE RESOLUTION. COURTS OF COMPETENT JURISDICTION SHALL HAVE
JURISDICTION TO DETERMINE ALL DISPUTES ARISING UNDER THIS ARTICLE.
  § 306. INDEMNIFICATION.   NO MUNICIPAL  CORPORATION  SHALL  REQUIRE  A
WIRELESS  PROVIDER  TO  INDEMNIFY AND HOLD THE MUNICIPAL CORPORATION AND
ITS OFFICERS AND EMPLOYEES HARMLESS AGAINST ANY CLAIMS, LAWSUITS,  JUDG-
MENTS,  COSTS,  LIENS,  LOSSES, EXPENSES OR FEES, EXCEPT WHEN A COURT OF
COMPETENT JURISDICTION HAS FOUND THAT THE  NEGLIGENCE  OF  THE  WIRELESS
PROVIDER WHILE INSTALLING, REPAIRING OR MAINTAINING CAUSED THE HARM THAT
CREATED   SUCH   CLAIMS,  LAWSUITS,  JUDGMENTS,  COSTS,  LIENS,  LOSSES,
EXPENSES, OR FEES OR TO REQUIRE A WIRELESS PROVIDER TO OBTAIN  INSURANCE
NAMING  THE MUNICIPAL CORPORATION OR ITS OFFICERS AND EMPLOYEES AN ADDI-
TIONAL INSURED AGAINST ANY OF THE FOREGOING.
  § 4. This act shall take effect immediately; provided,  however,  that
section  three  of this act shall take effect on the thirtieth day after
it shall have become a law.

                                 PART G

  Section 1. Paragraph (c) of subdivision 3 of section 501 of the  vehi-
cle  and  traffic  law,  as added by chapter 449 of the laws of 1989, is
amended to read as follows:
  (c) in the city of New York, [driving shall be prohibited]  FROM  FIVE
O'CLOCK  IN THE MORNING TO NINE O'CLOCK IN THE EVENING, WHEN ACCOMPANIED
BY A PERSON AT LEAST TWENTY-ONE YEARS OF AGE AND WHO IS A DULY  LICENSED
PARENT, GUARDIAN, PERSON IN A POSITION OF LOCO PARENTIS TO THE LICENSEE,
DRIVER EDUCATION TEACHER, OR DRIVING SCHOOL INSTRUCTOR, WHEN OPERATING A
VEHICLE EQUIPPED WITH DUAL BRAKE CONTROLS.
  § 2. Subdivision 2 of section 510-c of the vehicle and traffic law, as
amended  by  section  5  of part B of chapter 55 of the laws of 2014, is
amended to read as follows:
  2. For purposes of this section, the term "serious traffic  violation"
shall  mean operating a motor vehicle in violation of any of the follow-
ing provisions of this chapter:  articles  twenty-five  and  twenty-six;
subdivision  one  of  section  six  hundred;  section  six  hundred one;
sections eleven hundred eleven, eleven hundred seventy,  eleven  hundred
seventy-two and eleven hundred seventy-four; subdivisions (a), (b), (c),
(d)  and  (f)  of  section  eleven  hundred  eighty,  provided  that the
violation involved ten or more  miles  per  hour  over  the  established

S. 7508                            15                            A. 9508

limit;  section eleven hundred eighty-two; subdivision [three-a] THREE-B
of section twelve hundred twenty-nine-c for violations involving use  of
safety  belts  or seats by a child under the age of sixteen; and section
twelve hundred twelve of this chapter.
  §  3.  Subdivision 3 of section 1225-c of the vehicle and traffic law,
as added by chapter 69 of the laws of 2001, is amended and a new  subdi-
vision 2-a is added to read as follows:
  2-A. NO PERSON UNDER EIGHTEEN YEARS OF AGE SHALL OPERATE A MOTOR VEHI-
CLE  UPON  A PUBLIC HIGHWAY WHILE ENGAGING IN A CALL WITH A HAND-HELD OR
HANDS-FREE MOBILE TELEPHONE.  FOR  THE  PURPOSES  OF  THIS  SUBDIVISION,
ENGAGING IN A CALL SHALL INCLUDE MAKING OR RECEIVING A CALL WITH A HAND-
HELD OR HANDS-FREE MOBILE TELEPHONE.
  3.  [Subdivision] SUBDIVISIONS two AND TWO-A of this section shall not
apply to (a) the use of a mobile  telephone  for  the  sole  purpose  of
communicating  with  any  of  the following regarding an emergency situ-
ation: an emergency response operator; a hospital, physician's office or
health clinic;  an  ambulance  company  or  corps;  a  fire  department,
district  or  company;  or a police department, (b) any of the following
persons while in the performance of  their  official  duties:  a  police
officer  or  peace  officer;  a member of a fire department, district or
company; or the operator of an authorized emergency vehicle  as  defined
in  section one hundred one of this chapter, or (c) EXCEPT AS APPLIED TO
PERSONS UNDER THE AGE OF EIGHTEEN YEARS, the use of a hands-free  mobile
telephone.
  §  4. Paragraphs (a) and (b) of subdivision 2 of section 1225-d of the
vehicle and traffic law, as amended by section 8 of part C of chapter 58
of the laws of 2013, are amended to read as follows:
  (a) "Portable electronic device" shall mean any hand-held mobile tele-
phone, as defined by subdivision one of section twelve  hundred  twenty-
five-c  of  this  article,  personal  digital  assistant (PDA), handheld
device with  mobile  data  access,  laptop  computer,  pager,  broadband
personal  communication  device,  two-way  messaging  device, electronic
game, or portable computing device, or any other  [electronic]  PERSONAL
WIRELESS COMMUNICATIONS device when used to input, write, send, receive,
or  read  text  OR IMAGES for present or future communication, INCLUDING
DOING SO FOR THE PURPOSE OF SMS TEXTING, EMAILING, INSTANT MESSAGING, OR
ENGAGING IN ANY OTHER FORM OF ELECTRONIC DATA  RETRIEVAL  OR  ELECTRONIC
DATA COMMUNICATION.
  (b) "Using" shall mean holding OR MAKING CONTACT WITH a portable elec-
tronic device [while] FOR THE PURPOSE OF viewing, taking or transmitting
images, playing games, or, for the purpose of present or future communi-
cation: performing a command or request to access a world wide web page,
composing, sending, reading, viewing, accessing, browsing, transmitting,
saving  or  retrieving e-mail, text messages, instant messages, or other
electronic data.
  § 5. Subdivision 2 of section 1225-d of the vehicle and traffic law is
amended by adding a new paragraph (e) to read as follows:
  (E) "PERSONAL WIRELESS  COMMUNICATIONS  DEVICE"  (I)  MEANS  A  DEVICE
THROUGH   WHICH  PERSONAL  WIRELESS  SERVICES  (AS  DEFINED  IN  SECTION
332(C)(7)(C)(I)  OF  THE  COMMUNICATIONS  ACT   OF   1934   (47   U.S.C.
332(C)(7)(C)(I))) ARE TRANSMITTED; AND
  (II)  DOES  NOT  INCLUDE A GLOBAL NAVIGATION SATELLITE SYSTEM RECEIVER
USED FOR POSITIONING, EMERGENCY NOTIFICATION, OR NAVIGATION PURPOSES.
  § 6. Subdivision 4 of section 1225-d of the vehicle and  traffic  law,
as amended by section 10 of part C of chapter 58 of the laws of 2013, is
amended to read as follows:

S. 7508                            16                            A. 9508

  4.  A  person  who  [holds]  USES  a  portable  electronic device in a
conspicuous manner while operating a motor vehicle or while operating  a
commercial motor vehicle on a public highway including while temporarily
stationary because of traffic, a traffic control device, or other momen-
tary  delays  but  not  including  when such commercial motor vehicle is
stopped at the side of, or off, a public highway  in  a  location  where
such  vehicle  is  not  otherwise prohibited from stopping by law, rule,
regulation or any lawful order or  direction  of  a  police  officer  is
presumed  to  be  using  such  device,  except that a person operating a
commercial motor vehicle while using a portable electronic  device  when
such  vehicle  is  stopped at the side of, or off, a public highway in a
location where such vehicle is not otherwise prohibited from stopping by
law, rule, regulation or any lawful order or direction of a police offi-
cer shall not be presumed to  be  using  such  device.  The  presumption
established  by  this  subdivision  is rebuttable by evidence tending to
show that the operator was not using the device within  the  meaning  of
this section.
  §  7.  Subdivision 3 of section 1229-c of the vehicle and traffic law,
as added by chapter 365 of the laws of  1984,  is  amended  to  read  as
follows:
  3.  No  person  shall  operate  a  motor vehicle unless such person is
restrained by a safety belt approved  by  the  commissioner.  No  person
sixteen years of age or over shall be a passenger in [the front seat of]
a  motor  vehicle  unless  such  person  is  restrained by a safety belt
approved by the commissioner.
  § 8. Subdivision 13 of section 1229-c of the vehicle and traffic  law,
as  amended  by  chapter  20  of the laws of 2008, is amended to read as
follows:
  13.  Notwithstanding  the  provisions  of  subdivision  four  of  this
section,  no  person  shall  operate a school bus for which there are no
applicable federal school bus safety standards unless all occupants  are
restrained  by  a safety belt approved by the commissioner or, regarding
occupants age four or older but under age [seven] EIGHT, are  restrained
pursuant to subdivision one or two of this section.
  §  9.  The  vehicle and traffic law is amended by adding a new section
1170-a to read as follows:
  § 1170-A. OWNER LIABILITY FOR FAILURE OF OPERATOR TO OBEY SIGNAL INDI-
CATING APPROACH OF TRAIN. (A) 1. NOTWITHSTANDING ANY OTHER PROVISION  OF
LAW,  ANY  POLITICAL  SUBDIVISION AS DEFINED HEREIN IS HEREBY AUTHORIZED
AND EMPOWERED TO ADOPT AND AMEND A LOCAL LAW,  ORDINANCE  OR  RESOLUTION
ESTABLISHING  A DEMONSTRATION PROGRAM IMPOSING MONETARY LIABILITY ON THE
OWNER OF A VEHICLE FOR FAILURE OF AN OPERATOR  THEREOF  TO  COMPLY  WITH
SECTION  ELEVEN  HUNDRED  SEVENTY  OF  THIS  ARTICLE. SUCH DEMONSTRATION
PROGRAM SHALL EMPOWER A POLITICAL SUBDIVISION  TO  INSTALL  AND  OPERATE
RAILROAD  GRADE CROSSING PHOTO VIOLATION-MONITORING DEVICES AT ANY RAIL-
ROAD SIGN OR SIGNAL OVER WHICH IT HAS JURISDICTION.   THE  COST  OF  THE
PHOTO  VIOLATION MONITORING DEVICES MAY BE BORNE BY THE POLITICAL SUBDI-
VISION, A COMMUTER RAILROAD OPERATING WITHIN SUCH POLITICAL SUBDIVISION,
OR A COMBINATION OF BOTH SUCH POLITICAL SUBDIVISION AND  COMMUTER  RAIL-
ROAD PURSUANT TO A MEMORANDUM OF UNDERSTANDING.
  2.  SUCH DEMONSTRATION PROGRAM SHALL UTILIZE NECESSARY TECHNOLOGIES TO
ENSURE, TO THE EXTENT PRACTICABLE, THAT  PHOTOGRAPHS  PRODUCED  BY  SUCH
RAILROAD  GRADE  CROSSING  PHOTO  VIOLATION-MONITORING SYSTEMS SHALL NOT
INCLUDE IMAGES THAT IDENTIFY THE DRIVER, THE PASSENGERS OR THE  CONTENTS
OF  THE  VEHICLE.  NOTWITHSTANDING ANY FOREGOING, NO NOTICE OF LIABILITY
ISSUED PURSUANT TO THIS SECTION SHALL  BE  DISMISSED  SOLELY  BECAUSE  A

S. 7508                            17                            A. 9508

PHOTOGRAPH  OR  PHOTOGRAPHS ALLOW FOR THE IDENTIFICATION OF THE CONTENTS
OF A VEHICLE, PROVIDED  THAT  SUCH  POLITICAL  SUBDIVISION  HAS  MADE  A
REASONABLE EFFORT TO COMPLY WITH THE PROVISIONS OF THIS PARAGRAPH.
  (B)  WITHIN  THE  JURISDICTION OF ANY SUCH POLITICAL SUBDIVISION WHICH
HAS ADOPTED A LOCAL LAW, ORDINANCE OR RESOLUTION PURSUANT TO SUBDIVISION
(A) OF THIS SECTION, THE OWNER OF A VEHICLE SHALL BE LIABLE FOR A PENAL-
TY IMPOSED PURSUANT TO THIS SECTION IF SUCH VEHICLE WAS USED OR OPERATED
WITH THE PERMISSION OF THE OWNER, EXPRESS OR IMPLIED,  IN  VIOLATION  OF
SECTION  ELEVEN  HUNDRED  SEVENTY OF THIS ARTICLE, AND SUCH VIOLATION IS
EVIDENCE BY INFORMATION OBTAINED FROM A RAILROAD  GRADE  CROSSING  PHOTO
VIOLATION-MONITORING SYSTEM; PROVIDED, HOWEVER, THAT NO OWNER OF A VEHI-
CLE SHALL BE LIABLE FOR A PENALTY IMPOSED PURSUANT TO THIS SECTION WHERE
THE  OPERATOR  OF  SUCH  VEHICLE  HAS  BEEN  CONVICTED OF THE UNDERLYING
VIOLATION OF SECTION ELEVEN HUNDRED SEVENTY OF THIS ARTICLE.
  (C) FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL  HAVE  THE
FOLLOWING MEANING:
  1.  "OWNER"  SHALL  HAVE THE MEANING PROVIDED IN ARTICLE TWO-B OF THIS
CHAPTER;
  2. "RAILROAD GRADE CROSSING PHOTO VIOLATION-MONITORING  SYSTEM"  SHALL
MEAN  A  VEHICLE SENSOR INSTALLED TO WORK IN CONJUNCTION WITH A RAILROAD
SIGN OR SIGNAL WHICH AUTOMATICALLY PRODUCES TWO OR MORE PHOTOGRAPHS, TWO
OR MORE MICROPHOTOGRAPHS, A VIDEOTAPE OR OTHER RECORDED IMAGES  OF  EACH
VEHICLE AT THE TIME IT IS USED OR OPERATED IN VIOLATION OF SECTION ELEV-
EN HUNDRED SEVENTY OF THIS ARTICLE;
  3. "POLITICAL SUBDIVISION" SHALL MEAN A COUNTY, CITY, TOWN, OR VILLAGE
LOCATED  IN  THE  METROPOLITAN COMMUTER TRANSPORTATION DISTRICT, AS SUCH
DISTRICT IS DEFINED IN SECTION TWELVE HUNDRED SIXTY-TWO  OF  THE  PUBLIC
AUTHORITIES LAW; AND
  4. "COMMUTER RAILROAD" SHALL MEAN A RAILROAD OWNED AND OPERATED BY THE
METROPOLITAN  TRANSPORTATION  AUTHORITY WITHIN THE METROPOLITAN COMMUTER
TRANSPORTATION DISTRICT, AS SUCH  TERM  IS  DEFINED  IN  SECTION  TWELVE
HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW.
  (D)  A  CERTIFICATE,  SWORN TO OR AFFIRMED BY A TECHNICIAN EMPLOYED BY
THE COMMUTER RAILROAD OR BY  THE  POLITICAL  SUBDIVISION  IN  WHICH  THE
CHARGED   VIOLATION   OCCURRED,  OR  A  FACSIMILE  THEREOF,  BASED  UPON
INSPECTION OF PHOTOGRAPHS, MICROPHOTOGRAPHS, VIDEOTAPE OR OTHER RECORDED
IMAGES PRODUCED BY A RAILROAD GRADE CROSSING PHOTO  VIOLATION-MONITORING
SYSTEM,  SHALL  BE  PRIMA FACIE EVIDENCE OF THE FACTS CONTAINED THEREIN.
ANY PHOTOGRAPHS, MICROPHOTOGRAPHS, VIDEOTAPE OR  OTHER  RECORDED  IMAGES
EVIDENCING  SUCH  A  VIOLATION  SHALL BE AVAILABLE FOR INSPECTION IN ANY
PROCEEDING TO ADJUDICATE THE LIABILITY FOR SUCH VIOLATION PURSUANT TO  A
LOCAL LAW, ORDINANCE OR RESOLUTION ADOPTED PURSUANT TO THIS SECTION.
  (E)  AN OWNER LIABLE FOR A VIOLATION OF SECTION ELEVEN HUNDRED SEVENTY
OF THIS ARTICLE PURSUANT TO A LOCAL LAW, ORDINANCE OR RESOLUTION ADOPTED
PURSUANT TO THIS SECTION SHALL  BE  LIABLE  FOR  MONETARY  PENALTIES  IN
ACCORDANCE  WITH  A SCHEDULE OF FINES AND PENALTIES TO BE ESTABLISHED IN
SUCH LOCAL LAW, ORDINANCE OR RESOLUTION.  THE  LIABILITY  OF  THE  OWNER
PURSUANT  TO THIS SECTION SHALL NOT EXCEED TWO HUNDRED FIFTY DOLLARS FOR
EACH VIOLATION; PROVIDED, HOWEVER, THAT AN  ADJUDICATING  AUTHORITY  MAY
PROVIDE  FOR  AN  ADDITIONAL  PENALTY NOT IN EXCESS OF FIFTY DOLLARS FOR
EACH VIOLATION FOR THE FAILURE TO RESPOND TO A NOTICE OF LIABILITY WITH-
IN THE PRESCRIBED PERIOD OF TIME.
  (F) AN IMPOSITION OF LIABILITY UNDER A LOCAL LAW, ORDINANCE OR  RESOL-
UTION  ADOPTED PURSUANT TO THIS SECTION SHALL NOT BE DEEMED A CONVICTION
AS AN OPERATOR AND SHALL NOT BE MADE PART OF THE OPERATING RECORD OF THE

S. 7508                            18                            A. 9508

PERSON UPON WHOM SUCH LIABILITY IS IMPOSED NOR  SHALL  IT  BE  USED  FOR
INSURANCE PURPOSES IN THE PROVISION OF MOTOR VEHICLE INSURANCE COVERAGE.
  (G) 1. A NOTICE OF LIABILITY SHALL BE SENT BY FIRST CLASS MAIL TO EACH
PERSON ALLEGED TO BE LIABLE AS AN OWNER FOR A VIOLATION OF SECTION ELEV-
EN  HUNDRED  SEVENTY  OF THIS ARTICLE PURSUANT TO THIS SECTION. PERSONAL
DELIVERY ON THE OWNER SHALL NOT  BE  REQUIRED.  A  MANUAL  OR  AUTOMATIC
RECORD  OF  MAILING PREPARED IN THE ORDINARY COURSE OF BUSINESS SHALL BE
PRIMA FACIE EVIDENCE OF THE FACTS CONTAINED THEREIN.
  2. A NOTICE OF LIABILITY SHALL CONTAIN THE NAME  AND  ADDRESS  OF  THE
PERSON ALLEGED TO BE LIABLE AS AN OWNER FOR A VIOLATION OF SECTION ELEV-
EN  HUNDRED SEVENTY OF THIS ARTICLE PURSUANT TO THIS SECTION, THE REGIS-
TRATION NUMBER OF THE VEHICLE INVOLVED IN SUCH VIOLATION,  THE  LOCATION
WHERE SUCH VIOLATION TOOK PLACE, THE DATE AND TIME OF SUCH VIOLATION AND
THE  IDENTIFICATION NUMBER OF THE CAMERA WHICH RECORDED THE VIOLATION OR
OTHER DOCUMENT LOCATOR NUMBER.
  3. THE NOTICE OF LIABILITY  SHALL  CONTAIN  INFORMATION  ADVISING  THE
PERSON CHARGED OF THE MANNER AND THE TIME IN WHICH HE OR SHE MAY CONTEST
THE LIABILITY ALLEGED IN THE NOTICE. SUCH NOTICE OF LIABILITY SHALL ALSO
CONTAIN  A  WARNING TO ADVISE THE PERSON CHARGED THAT FAILURE TO CONTEST
IN THE MANNER AND TIME PROVIDED SHALL BE DEEMED AN ADMISSION OF  LIABIL-
ITY AND THAT A DEFAULT JUDGMENT MAY BE ENTERED THEREON.
  4.  THE  NOTICE OF LIABILITY SHALL BE PREPARED AND MAILED BY THE POLI-
TICAL SUBDIVISION, OR BY ANY OTHER ENTITY AUTHORIZED BY  SUCH  POLITICAL
SUBDIVISION TO PREPARE AND MAIL SUCH NOTIFICATION OF VIOLATION.
  (H)  ADJUDICATION OF THE LIABILITY IMPOSED UPON OWNERS BY THIS SECTION
SHALL BE BY THE COURT  HAVING  JURISDICTION  OVER  TRAFFIC  INFRACTIONS,
EXCEPT THAT IF SUCH POLITICAL SUBDIVISION HAS ESTABLISHED AN ADMINISTRA-
TIVE  TRIBUNAL  TO  HEAR AND DETERMINE COMPLAINTS OF TRAFFIC INFRACTIONS
CONSTITUTING PARKING, STANDING OR  STOPPING  VIOLATIONS  SUCH  POLITICAL
SUBDIVISION  MAY,  BY  LOCAL  LAW,  AUTHORIZE  SUCH ADJUDICATION BY SUCH
TRIBUNAL.
  (I) IF AN OWNER RECEIVES  A  NOTICE  OF  LIABILITY  PURSUANT  TO  THIS
SECTION  FOR  ANY TIME PERIOD DURING WHICH THE VEHICLE WAS REPORTED TO A
LAW ENFORCEMENT AGENCY AS HAVING  BEEN  STOLEN,  IT  SHALL  BE  A  VALID
DEFENSE  TO AN ALLEGATION OF LIABILITY FOR A VIOLATION OF SECTION ELEVEN
HUNDRED SEVENTY OF THIS ARTICLE PURSUANT TO THIS SECTION THAT THE  VEHI-
CLE  HAS  BEEN  REPORTED  TO  THE POLICE AS STOLEN PRIOR TO THE TIME THE
VIOLATION OCCURRED AND HAD NOT BEEN RECOVERED BY SUCH TIME. FOR PURPOSES
OF ASSERTING THE DEFENSE PROVIDED BY THIS SUBDIVISION IT SHALL BE SUFFI-
CIENT THAT A CERTIFIED COPY OF A POLICE REPORT ON THE STOLEN VEHICLE  BE
SENT  BY  FIRST  CLASS  MAIL TO THE COURT HAVING JURISDICTION OR PARKING
VIOLATIONS BUREAU.
  (J) 1. IN SUCH POLITICAL SUBDIVISION WHERE THE ADJUDICATION OF LIABIL-
ITY IMPOSED UPON OWNERS PURSUANT TO THIS SECTION IS BY  A  COURT  HAVING
JURISDICTION,  AND  AN  OWNER  WHO  IS  A LESSOR OF A VEHICLE TO WHICH A
NOTICE OF LIABILITY WAS ISSUED  PURSUANT  TO  SUBDIVISION  (G)  OF  THIS
SECTION  SHALL NOT BE LIABLE FOR THE VIOLATION OF SECTION ELEVEN HUNDRED
SEVENTY OF THIS ARTICLE, PROVIDED THAT HE OR  SHE  SENDS  TO  THE  COURT
HAVING  JURISDICTION  OF  A  COPY  OF  THE  RENTAL,  LEASE OR OTHER SUCH
CONTRACT DOCUMENT COVERING SUCH VEHICLE ON THE DATE  OF  THE  VIOLATION,
WITH  THE NAME AND ADDRESS OF THE LESSEE CLEARLY LEGIBLE, WITHIN THIRTY-
SEVEN DAYS AFTER RECEIVING NOTICE FROM THE COURT OF THE DATE AND TIME OF
SUCH VIOLATION, TOGETHER WITH THE OTHER  INFORMATION  CONTAINED  IN  THE
ORIGINAL  NOTICE  OF  LIABILITY. FAILURE TO SEND SUCH INFORMATION WITHIN
SUCH THIRTY-SEVEN DAY TIME PERIOD SHALL RENDER THE OWNER LIABLE FOR  THE
PENALTY  PRESCRIBED  BY THIS SECTION. WHERE THE LESSOR COMPLIES WITH THE

S. 7508                            19                            A. 9508

PROVISIONS OF THIS PARAGRAPH, THE LESSEE OF SUCH VEHICLE ON THE DATE  OF
SUCH  VIOLATION  SHALL  BE  DEEMED  TO  BE THE OWNER OF SUCH VEHICLE FOR
PURPOSES OF  THIS  SECTION,  SHALL  BE  SUBJECT  TO  LIABILITY  FOR  THE
VIOLATION  OF SECTION ELEVEN HUNDRED SEVENTY OF THIS ARTICLE PURSUANT TO
SUBDIVISION (G) OF THIS SECTION.
  2. (I) IN ANY POLITICAL SUBDIVISION WHICH HAS AUTHORIZED  THE  ADJUDI-
CATION  OF  LIABILITY  IMPOSED  UPON OWNERS BY THIS SECTION BY A PARKING
VIOLATIONS BUREAU, AN OWNER WHO IS A LESSOR OF  A  VEHICLE  TO  WHICH  A
NOTICE  OF  LIABILITY  WAS  ISSUED  PURSUANT  TO SUBDIVISION (G) OF THIS
SECTION SHALL NOT BE LIABLE FOR THE VIOLATION OF SECTION ELEVEN  HUNDRED
SEVENTY OF THIS ARTICLE, PROVIDED THAT:
  (A)  PRIOR  TO  THE VIOLATION, THE LESSOR HAS FILED WITH THE BUREAU IN
ACCORDANCE WITH THE PROVISIONS OF SECTION  TWO  HUNDRED  THIRTY-NINE  OF
THIS CHAPTER; AND
  (B) WITHIN THIRTY-SEVEN DAYS AFTER RECEIVING NOTICE FROM THE BUREAU OF
THE  DATE  AND  TIME OF A LIABILITY, TOGETHER WITH THE OTHER INFORMATION
CONTAINED IN THE ORIGINAL NOTICE OF LIABILITY, THE LESSOR SUBMITS TO THE
BUREAU THE CORRECT NAME AND ADDRESS OF THE LESSEE OF THE VEHICLE IDENTI-
FIED IN THE NOTICE OF LIABILITY AT THE TIME OF SUCH VIOLATION,  TOGETHER
WITH SUCH OTHER ADDITIONAL INFORMATION CONTAINED IN THE RENTAL, LEASE OR
OTHER  CONTRACT  DOCUMENT,  AS  MAY BE REASONABLY REQUIRED BY THE BUREAU
PURSUANT TO REGULATIONS THAT MAY BE PROMULGATED FOR SUCH PURPOSE.
  (II) FAILURE TO COMPLY WITH CLAUSE (B) OF  SUBPARAGRAPH  (I)  OF  THIS
PARAGRAPH  SHALL  RENDER  THE OWNER LIABLE FOR THE PENALTY PRESCRIBED IN
THIS SECTION.
  (III) WHERE THE LESSOR COMPLIES WITH THE PROVISIONS OF THIS PARAGRAPH,
THE LESSEE OF SUCH VEHICLE ON THE DATE OF SUCH VIOLATION SHALL BE DEEMED
TO BE THE OWNER OF SUCH VEHICLE FOR PURPOSES OF THIS SECTION,  SHALL  BE
SUBJECT  TO  LIABILITY  FOR  SUCH VIOLATION PURSUANT TO THIS SECTION AND
SHALL BE SENT A NOTICE OF LIABILITY PURSUANT TO THIS SECTION  AND  SHALL
BE  SENT  A  NOTICE  OF  LIABILITY  PURSUANT  TO SUBDIVISION (G) OF THIS
SECTION.
  (K) 1. IF THE OWNER LIABLE FOR A VIOLATION OF SECTION  ELEVEN  HUNDRED
SEVENTY OF THIS ARTICLE PURSUANT TO THIS SECTION WAS NOT THE OPERATOR OF
THE  VEHICLE  AT  THE  TIME  OF THE VIOLATION, THE OWNER MAY MAINTAIN AN
ACTION FOR INDEMNIFICATION AGAINST THE OPERATOR.
  2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NO OWNER OF  A
VEHICLE  SHALL  BE  SUBJECT  TO A MONETARY FINE IMPOSED PURSUANT TO THIS
SECTION IF THE OPERATOR OF SUCH VEHICLE WAS OPERATING SUCH VEHICLE WITH-
OUT THE CONSENT OF THE OWNER AT THE TIME SUCH OPERATOR FAILED TO  COMPLY
WITH  THE  PROVISIONS OF SECTION ELEVEN HUNDRED SEVENTY OF THIS ARTICLE.
FOR PURPOSES OF THIS SUBDIVISION THERE SHALL BE A PRESUMPTION  THAT  THE
OPERATOR  OF SUCH VEHICLE WAS OPERATING SUCH VEHICLE WITH THE CONSENT OF
THE OWNER AT THE TIME SUCH OPERATOR FAILED TO COMPLY WITH THE PROVISIONS
OF SECTION ELEVEN HUNDRED SEVENTY OF THIS ARTICLE.
  (L) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE  LIABILITY
OF  AN OPERATOR OF A VEHICLE FOR ANY VIOLATION OF SECTION ELEVEN HUNDRED
SEVENTY OF THIS ARTICLE.
  (M) IN ANY SUCH POLITICAL SUBDIVISION  WHICH  ADOPTS  A  DEMONSTRATION
PROGRAM  PURSUANT  TO  SUBDIVISION  (A)  OF THIS SECTION, SUCH POLITICAL
SUBDIVISION SHALL SUBMIT AN ANNUAL REPORT ON THE RESULTS OF THE USE OF A
RAILROAD GRADE CROSSING PHOTO VIOLATION-MONITORING SYSTEM TO THE  GOVER-
NOR, THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEM-
BLY  ON OR BEFORE JUNE FIRST, TWO THOUSAND EIGHTEEN AND ON THE SAME DATE
IN EACH SUCCEEDING YEAR IN WHICH THE DEMONSTRATION PROGRAM IS  OPERABLE.
SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO:

S. 7508                            20                            A. 9508

  1.  A  DESCRIPTION OF THE LOCATION WHERE RAILROAD GRADE CROSSING PHOTO
VIOLATION-MONITORING SYSTEM WAS USED;
  2.  THE  AGGREGATE  NUMBER, TYPE AND SEVERITY OF ACCIDENTS REPORTED AT
INTERSECTIONS WHERE A RAILROAD GRADE CROSSING PHOTO VIOLATION-MONITORING
SYSTEM IS USED FOR THE YEAR PRECEDING THE INSTALLATION OF  SUCH  SYSTEM,
TO THE EXTENT THE INFORMATION IS MAINTAINED BY THE DEPARTMENT;
  3.  THE  AGGREGATE  NUMBER, TYPE AND SEVERITY OF ACCIDENTS REPORTED AT
INTERSECTIONS WHERE A RAILROAD GRADE CROSSING PHOTO VIOLATION-MONITORING
SYSTEM IS USED, TO THE EXTENT  THE  INFORMATION  IS  MAINTAINED  BY  THE
DEPARTMENT;
  4.  THE  NUMBER  OF  VIOLATIONS  RECORDED AT EACH INTERSECTION WHERE A
RAILROAD GRADE CROSSING PHOTO VIOLATION-MONITORING SYSTEM IS USED AND IN
THE AGGREGATE ON A DAILY, WEEKLY, AND MONTHLY BASIS;
  5. THE TOTAL NUMBER OF NOTICES  OF  LIABILITY  ISSUED  FOR  VIOLATIONS
RECORDED BY SUCH SYSTEMS;
  6.  THE  NUMBER  OF  FINES  AND TOTAL AMOUNT OF FINES PAID AFTER FIRST
NOTICE OF LIABILITY ISSUED FOR VIOLATIONS RECORDED BY SUCH SYSTEMS;
  7. THE NUMBER OF VIOLATIONS ADJUDICATED AND RESULTS  OF  SUCH  ADJUDI-
CATIONS   INCLUDING  BREAKDOWNS  OF  DISPOSITIONS  MADE  FOR  VIOLATIONS
RECORDED BY SUCH SYSTEMS;
  8. THE TOTAL AMOUNT OF REVENUE REALIZED BY SUCH POLITICAL  SUBDIVISION
FROM SUCH ADJUDICATIONS;
  9.  EXPENSES INCURRED BY SUCH POLITICAL SUBDIVISION IN CONNECTION WITH
THE PROGRAM; AND
  10. QUALITY OF THE ADJUDICATION PROCESS AND ITS RESULTS.
  (N) IT SHALL BE AN  AFFIRMATIVE  DEFENSE  TO  ANY  PROSECUTION  FOR  A
VIOLATION  OF SECTION ELEVEN HUNDRED SEVENTY OF THIS ARTICLE PURSUANT TO
A LOCAL LAW OR ORDINANCE ADOPTED PURSUANT TO THIS SECTION THAT THERE  IS
VERIFIED EVIDENCE THAT THE RAILROAD SIGNAL INDICATIONS WERE MALFUNCTION-
ING AT THE TIME OF THE ALLEGED VIOLATION.
  §  10.  The vehicle and traffic law is amended by adding a new section
1633 to read as follows:
  § 1633. RAILROAD GRADE CROSSING  ENFORCEMENT;  DEMONSTRATION  PROGRAM.
(A)  1. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE LONG ISLAND RAIL
ROAD AND THE METRO-NORTH COMMUTER RAILROAD (HEREINAFTER REFERRED  TO  AS
"THE  COMMUTER RAILROADS") ARE HEREBY AUTHORIZED AND EMPOWERED TO IMPLE-
MENT A DEMONSTRATION PROGRAM IMPOSING MONETARY LIABILITY ON THE OWNER OF
A VEHICLE FOR FAILURE OF AN OPERATOR  THEREOF  TO  COMPLY  WITH  SECTION
ELEVEN HUNDRED SEVENTY OF THIS CHAPTER. SUCH DEMONSTRATION PROGRAM SHALL
EMPOWER  EACH  OF THE COMMUTER RAILROADS TO INSTALL AND OPERATE RAILROAD
GRADE CROSSING PHOTO VERIFICATION-MONITORING  DEVICES  AT  ANY  RAILROAD
SIGN  OR  SIGNAL  THAT  INDICATES  THE  APPROACH OF ONE OF ITS TRAINS. A
VIOLATION COMMITTED PURSUANT TO THE PROVISIONS OF THIS SECTION SHALL  BE
DEEMED  A TRAFFIC INFRACTION, AND ADJUDICATION OF THE TRAFFIC INFRACTION
AGAINST THE OWNER SHALL BE IN ACCORDANCE WITH  THE  PROVISIONS  OF  THIS
CHAPTER.
  2.  SUCH DEMONSTRATION PROGRAM SHALL UTILIZE NECESSARY TECHNOLOGIES TO
ENSURE, TO THE EXTENT PRACTICABLE, THAT  PHOTOGRAPHS  PRODUCED  BY  SUCH
RAILROAD  GRADE  CROSSING  PHOTO  VIOLATION-MONITORING SYSTEMS SHALL NOT
INCLUDE IMAGES THAT IDENTIFY THE DRIVER, THE PASSENGERS OR THE  CONTENTS
OF  THE VEHICLE.   PROVIDED, HOWEVER, THAT NO NOTICE OF LIABILITY ISSUED
PURSUANT TO THIS SECTION SHALL BE DISMISSED SOLELY BECAUSE A  PHOTOGRAPH
OR  PHOTOGRAPHS  ALLOW FOR THE IDENTIFICATION OF THE CONTENTS OF A VEHI-
CLE, PROVIDED THAT THE COMMUTER RAILROAD HAS MADE A REASONABLE EFFORT TO
COMPLY WITH THE PROVISIONS OF THIS PARAGRAPH.

S. 7508                            21                            A. 9508

  (B) WITHIN THE JURISDICTION OF ANY SUCH COMMUTER RAILROAD PURSUANT  TO
SUBDIVISION (A) OF THIS SECTION, AND SUBJECT TO THE ADJUDICATORY PROCESS
OF  THE  APPROPRIATE POLITICAL SUBDIVISION, THE OWNER OF A VEHICLE SHALL
BE LIABLE FOR A PENALTY IMPOSED PURSUANT TO THIS SECTION IF SUCH VEHICLE
WAS  USED  OR  OPERATED  WITH  THE  PERMISSION  OF THE OWNER, EXPRESS OR
IMPLIED, IN VIOLATION OF SECTION ELEVEN HUNDRED SEVENTY OF THIS CHAPTER,
AND SUCH VIOLATION IS EVIDENCED BY INFORMATION OBTAINED FROM A  RAILROAD
GRADE  CROSSING  PHOTO  VIOLATION-MONITORING  SYSTEM; PROVIDED, HOWEVER,
THAT NO OWNER OF A VEHICLE SHALL BE LIABLE FOR A PENALTY IMPOSED  PURSU-
ANT  TO  THIS  SECTION  WHERE  THE  OPERATOR  OF  SUCH  VEHICLE HAS BEEN
CONVICTED OF THE UNDERLYING VIOLATION OF SECTION ELEVEN HUNDRED  SEVENTY
OF THIS CHAPTER.
  (C)  FOR  PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANING:
  1. "OWNER" SHALL HAVE THE MEANING PROVIDED IN ARTICLE  TWO-B  OF  THIS
CHAPTER;
  2.  "RAILROAD  GRADE CROSSING PHOTO VIOLATION-MONITORING SYSTEM" SHALL
MEAN A VEHICLE SENSOR INSTALLED TO WORK IN CONJUNCTION WITH  A  RAILROAD
SIGN OR SIGNAL WHICH AUTOMATICALLY PRODUCES TWO OR MORE PHOTOGRAPHS, TWO
OR  MORE  MICROPHOTOGRAPHS, A VIDEOTAPE OR OTHER RECORDED IMAGES OF EACH
VEHICLE AT THE TIME IT IS USED OR OPERATED IN VIOLATION OF SECTION ELEV-
EN HUNDRED SEVENTY OF THIS CHAPTER;
  3. "POLITICAL SUBDIVISION" SHALL MEAN A COUNTY, CITY, TOWN OR  VILLAGE
LOCATED  IN  THE  METROPOLITAN COMMUTER TRANSPORTATION DISTRICT, AS SUCH
DISTRICT IS DEFINED IN SECTION TWELVE HUNDRED SIXTY-TWO  OF  THE  PUBLIC
AUTHORITIES LAW;
  (D)  A  CERTIFICATE,  SWORN TO OR AFFIRMED BY A TECHNICIAN EMPLOYED BY
THE COMMUTER RAILROAD WHERE THE CHARGED VIOLATION OCCURRED, OR A FACSIM-
ILE THEREOF, BASED UPON  INSPECTION  OF  PHOTOGRAPHS,  MICROPHOTOGRAPHS,
VIDEOTAPE OR OTHER RECORDED IMAGES PRODUCED BY A RAILROAD GRADE CROSSING
PHOTO  VIOLATION-MONITORING SYSTEM, SHALL BE PRIMA FACIE EVIDENCE OF THE
FACTS CONTAINED THEREIN.  ANY PHOTOGRAPHS,  MICROPHOTOGRAPHS,  VIDEOTAPE
OR  OTHER RECORDED IMAGES EVIDENCING SUCH A VIOLATION SHALL BE AVAILABLE
FOR INSPECTION IN ANY PROCEEDING TO ADJUDICATE THE  LIABILITY  FOR  SUCH
VIOLATION PURSUANT TO LAW.
  (E)  AN OWNER LIABLE FOR A VIOLATION OF SECTION ELEVEN HUNDRED SEVENTY
OF THIS CHAPTER PURSUANT TO  A  RAILROAD  GRADE  CROSSING  DEMONSTRATION
PROJECT  ADOPTED  PURSUANT  TO THIS SECTION SHALL BE LIABLE FOR MONETARY
PENALTIES NOT TO EXCEED TWO HUNDRED FIFTY DOLLARS  FOR  EACH  VIOLATION;
PROVIDED,  HOWEVER,  THAT  AN  ADJUDICATING AUTHORITY MAY PROVIDE FOR AN
ADDITIONAL PENALTY OF NOT IN EXCESS OF FIFTY DOLLARS FOR EACH  VIOLATION
FOR  THE  FAILURE  TO  RESPOND  TO  A  NOTICE  OF  LIABILITY  WITHIN THE
PRESCRIBED PERIOD OF TIME.
  (F) AN IMPOSITION OF LIABILITY PURSUANT TO THIS SECTION SHALL  NOT  BE
DEEMED  A  CONVICTION  AS  AN OPERATOR AND SHALL NOT BE MADE PART OF THE
OPERATING RECORD OF THE PERSON UPON WHOM SUCH LIABILITY IS  IMPOSED  NOR
SHALL  IT  BE  USED FOR INSURANCE PURPOSES IN THE PROVISION OF THE MOTOR
VEHICLE INSURANCE COVERAGE.
  (G) 1. A NOTICE OF LIABILITY SHALL BE SENT BY FIRST CLASS MAIL TO EACH
PERSON ALLEGED TO BE LIABLE AS AN OWNER FOR A VIOLATION OF SECTION ELEV-
EN HUNDRED SEVENTY OF THIS CHAPTER PURSUANT TO  THIS  SECTION.  PERSONAL
DELIVERY  ON  THE  OWNER  SHALL  NOT  BE REQUIRED. A MANUAL OR AUTOMATIC
RECORD OF MAILING PREPARED IN THE ORDINARY COURSE OF BUSINESS  SHALL  BE
PRIMA FACIE EVIDENCE OF THE FACTS CONTAINED THEREIN.
  2.  A  NOTICE  OF  LIABILITY SHALL CONTAIN THE NAME AND ADDRESS OF THE
PERSON ALLEGED TO BE LIABLE AS AN OWNER FOR A VIOLATION OF SECTION ELEV-

S. 7508                            22                            A. 9508

EN HUNDRED SEVENTY OF THIS CHAPTER PURSUANT TO THIS SECTION, THE  REGIS-
TRATION  NUMBER  OF THE VEHICLE INVOLVED IN SUCH VIOLATION, THE LOCATION
WHERE SUCH VIOLATION TOOK PLACE, THE DATE AND TIME OF SUCH VIOLATION AND
THE  IDENTIFICATION NUMBER OF THE CAMERA WHICH RECORDED THE VIOLATION OR
OTHER DOCUMENT LOCATOR NUMBER.
  3. THE NOTICE OF LIABILITY  SHALL  CONTAIN  INFORMATION  ADVISING  THE
PERSON CHARGED OF THE MANNER AND THE TIME IN WHICH HE OR SHE MAY CONTEST
THE LIABILITY ALLEGED IN THE NOTICE. SUCH NOTICE OF LIABILITY SHALL ALSO
CONTAIN  A  WARNING TO ADVISE THE PERSON CHARGED THAT FAILURE TO CONTEST
IN THE MANNER AND TIME PROVIDED SHALL BE DEEMED AN ADMISSION OF  LIABIL-
ITY AND THAT A DEFAULT JUDGMENT MAY BE ENTERED THEREON.
  4.  THE NOTICE OF LIABILITY SHALL BE PREPARED AND MAILED BY THE COMMU-
TER RAILROAD, OR BY ANY OTHER ENTITY AUTHORIZED BY SUCH  COMMUTER  RAIL-
ROAD TO PREPARE AND MAIL SUCH NOTIFICATION OF VIOLATION.
  (H)  ADJUDICATION OF THE LIABILITY IMPOSED UPON OWNERS BY THIS SECTION
SHALL BE BY THE COURT  HAVING  JURISDICTION  OVER  TRAFFIC  INFRACTIONS,
EXCEPT THAT IF A POLITICAL SUBDIVISION HAS ESTABLISHED AN ADMINISTRATIVE
TRIBUNAL TO HEAR AND DETERMINE COMPLAINTS OF TRAFFIC INFRACTIONS CONSTI-
TUTING  PARKING, STANDING OR STOPPING VIOLATIONS SUCH POLITICAL SUBDIVI-
SION MAY, BY LOCAL LAW, AUTHORIZE SUCH ADJUDICATION BY SUCH TRIBUNAL.
  (I) IF AN OWNER RECEIVES  A  NOTICE  OF  LIABILITY  PURSUANT  TO  THIS
SECTION  FOR  ANY TIME PERIOD DURING WHICH THE VEHICLE WAS REPORTED TO A
LAW ENFORCEMENT AGENCY AS HAVING  BEEN  STOLEN,  IT  SHALL  BE  A  VALID
DEFENSE  TO AN ALLEGATION OF LIABILITY FOR A VIOLATION OF SECTION ELEVEN
HUNDRED SEVENTY OF THIS CHAPTER PURSUANT TO THIS SECTION THAT THE  VEHI-
CLE  HAD  BEEN  REPORTED  TO  THE POLICE AS STOLEN PRIOR TO THE TIME THE
VIOLATION OCCURRED AND HAS NOT BEEN RECOVERED BY SUCH TIME. FOR PURPOSES
OF ASSERTING THE DEFENSE PROVIDED BY THIS SUBDIVISION IT SHALL BE SUFFI-
CIENT THAT A CERTIFIED COPY OF A POLICE REPORT ON THE STOLEN VEHICLE  BE
SENT  BY  FIRST  CLASS  MAIL TO THE COURT HAVING JURISDICTION OR PARKING
VIOLATIONS BUREAU.
  (J) 1. IN ANY POLITICAL SUBDIVISION WHERE THE ADJUDICATION OF  LIABIL-
ITY  IMPOSED  UPON  OWNERS PURSUANT TO THIS SECTION IS BY A COURT HAVING
JURISDICTION, AN OWNER WHO IS A LESSOR OF A VEHICLE TO WHICH A NOTICE OF
LIABILITY WAS ISSUED PURSUANT TO SUBDIVISION (G) OF THIS  SECTION  SHALL
NOT  BE  LIABLE  FOR  THE VIOLATION OF SECTION ELEVEN HUNDRED SEVENTY OF
THIS CHAPTER, PROVIDED THAT HE OR SHE SEND TO THE COURT HAVING JURISDIC-
TION A COPY OF THE RENTAL, LEASE OR OTHER SUCH CONTRACT DOCUMENT  COVER-
ING SUCH VEHICLE ON THE DATE OF THE VIOLATION, WITH THE NAME AND ADDRESS
OF  THE LESSEE CLEARLY LEGIBLE, WITHIN THIRTY-SEVEN DAYS AFTER RECEIVING
NOTICE FROM THE COURT OF THE DATE AND TIME OF SUCH  VIOLATION,  TOGETHER
WITH  THE  OTHER INFORMATION CONTAINED IN THE ORIGINAL NOTICE OF LIABIL-
ITY. FAILURE TO SEND SUCH INFORMATION WITHIN SUCH THIRTY-SEVEN DAY  TIME
PERIOD  SHALL RENDER THE OWNER LIABLE FOR THE PENALTY PRESCRIBED BY THIS
SECTION.  WHERE THE LESSOR COMPLIES WITH THE PROVISIONS  OF  THIS  PARA-
GRAPH, THE LESSEE OF SUCH VEHICLE ON THE DATE OF SUCH VIOLATION SHALL BE
DEEMED  TO  BE  THE  OWNER OF SUCH VEHICLE FOR PURPOSES OF THIS SECTION,
SHALL BE SUBJECT TO  LIABILITY  FOR  THE  VIOLATION  OF  SECTION  ELEVEN
HUNDRED  SEVENTY  OF  THIS CHAPTER PURSUANT TO THIS SECTION AND SHALL BE
SENT A NOTICE OF LIABILITY PURSUANT TO SUBDIVISION (G) OF THIS SECTION.
  2. (I) IN ANY POLITICAL SUBDIVISION WHICH HAS AUTHORIZED  THE  ADJUDI-
CATION  OF  LIABILITY  IMPOSED  UPON OWNERS BY THIS SECTION BY A PARKING
VIOLATIONS BUREAU, AN OWNER WHO IS A LESSOR OF  A  VEHICLE  TO  WHICH  A
NOTICE  OF  LIABILITY  WAS  ISSUED  PURSUANT  TO SUBDIVISION (G) OF THIS
SECTION SHALL NOT BE LIABLE FOR THE VIOLATION OF SECTION ELEVEN  HUNDRED
SEVENTY OF THIS CHAPTER, PROVIDED THAT:

S. 7508                            23                            A. 9508

  (A)  PRIOR  TO  THE VIOLATION, THE LESSOR HAS FILED WITH THE BUREAU IN
ACCORDANCE WITH THE PROVISIONS OF SECTION  TWO  HUNDRED  THIRTY-NINE  OF
THIS CHAPTER; AND
  (B) WITHIN THIRTY-SEVEN DAYS AFTER RECEIVING NOTICE FROM THE BUREAU OF
THE  DATE  AND  TIME OF A LIABILITY, TOGETHER WITH THE OTHER INFORMATION
CONTAINED IN THE ORIGINAL NOTICE OF LIABILITY, THE LESSOR SUBMITS TO THE
BUREAU THE CORRECT NAME AND ADDRESS OF THE LESSEE OF THE VEHICLE IDENTI-
FIED IN THE NOTICE OF LIABILITY AT THE TIME OF SUCH VIOLATION,  TOGETHER
WITH SUCH OTHER ADDITIONAL INFORMATION CONTAINED IN THE RENTAL, LEASE OR
OTHER  CONTRACT  DOCUMENT,  AS  MAY BE REASONABLY REQUIRED BY THE BUREAU
PURSUANT TO REGULATIONS THAT MAY BE REASONABLY REQUIRED  BY  THE  BUREAU
PURSUANT TO REGULATIONS THAT MAY BE PROMULGATED FOR SUCH PURPOSE.
  (II)  FAILURE  TO  COMPLY  WITH CLAUSE (B) OF SUBPARAGRAPH (I) OF THIS
PARAGRAPH SHALL RENDER THE OWNER LIABLE FOR THE  PENALTY  PRESCRIBED  IN
THIS SECTION.
  (III)  WHERE THE LESSOR COMPLIES WITH THE PROVISION OF THIS PARAGRAPH,
THE LESSEE OF SUCH VEHICLE ON THE DATE OF SUCH VIOLATION SHALL BE DEEMED
TO BE THE OWNER OF SUCH VEHICLE FOR PURPOSES OF THIS SECTION,  SHALL  BE
SUBJECT  TO  LIABILITY  FOR  SUCH VIOLATION PURSUANT TO THIS SECTION AND
SHALL BE SENT A NOTICE OF LIABILITY PURSUANT TO SUBDIVISION (G) OF  THIS
SECTION.
  (K)  1.  IF THE OWNER LIABLE FOR A VIOLATION OF SECTION ELEVEN HUNDRED
SEVENTY OF THIS CHAPTER PURSUANT TO THIS SECTION WAS NOT THE OPERATOR OF
THE VEHICLE AT THE TIME OF THE VIOLATION,  THE  OWNER  MAY  MAINTAIN  AN
ACTION FOR INDEMNIFICATION AGAINST THE OPERATOR.
  2.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NO OWNER OF A
VEHICLE SHALL BE SUBJECT TO A MONETARY FINE  IMPOSED  PURSUANT  TO  THIS
SECTION IF THE OPERATOR OF SUCH VEHICLE WAS OPERATING SUCH VEHICLE WITH-
OUT  THE CONSENT OF THE OWNER AT THE TIME SUCH OPERATOR FAILED TO OBEY A
RAILROAD SIGN OR SIGNAL INDICATING THE APPROACH OF A TRAIN. FOR PURPOSES
OF THIS SUBDIVISION THERE SHALL BE A PRESUMPTION THAT  THE  OPERATOR  OF
SUCH VEHICLE WAS OPERATING SUCH VEHICLE WITH THE CONSENT OF THE OWNER AT
THE TIME SUCH OPERATOR FAILED TO OBEY A RAILROAD SIGN OR SIGNAL INDICAT-
ING THE APPROACH OF A TRAIN.
  (L)  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE LIABILITY
OF AN OPERATOR OF A VEHICLE FOR ANY VIOLATION OF SECTION ELEVEN  HUNDRED
SEVENTY OF THIS CHAPTER.
  (M)  WHERE A COMMUTER RAILROAD ADOPTS A DEMONSTRATION PROGRAM PURSUANT
TO SUBDIVISION (A) OF THIS SECTION, SUCH RAILROAD SHALL SUBMIT AN ANNUAL
REPORT ON THE RESULTS OF THE USE OF  A  RAILROAD  GRADE  CROSSING  PHOTO
VIOLATION-MONITORING  SYSTEM TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF
THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON OR BEFORE JUNE FIRST,  TWO
THOUSAND  EIGHTEEN AND ON THE SAME DATE IN EACH SUCCEEDING YEAR IN WHICH
THE DEMONSTRATION PROGRAM IS OPERABLE.  SUCH REPORT SHALL  INCLUDE,  BUT
NOT BE LIMITED TO:
  1.  A DESCRIPTION OF THE LOCATIONS WHERE RAILROAD GRADE CROSSING PHOTO
VIOLATION-MONITORING SYSTEMS WERE USED;
  2. THE AGGREGATE NUMBER, TYPE AND SEVERITY OF  ACCIDENTS  REPORTED  AT
INTERSECTIONS WHERE A RAILROAD GRADE CROSSING PHOTO VIOLATION-MONITORING
SYSTEM  IS  USED FOR THE YEAR PRECEDING THE INSTALLATION OF SUCH SYSTEM,
TO THE EXTENT THE INFORMATION IS MAINTAINED BY THE DEPARTMENT;
  3. THE AGGREGATE NUMBER, TYPE AND SEVERITY OF  ACCIDENTS  REPORTED  AT
INTERSECTIONS WHERE A RAILROAD GRADE CROSSING PHOTO VIOLATION-MONITORING
SYSTEM  IS  USED,  TO  THE  EXTENT  THE INFORMATION IS MAINTAINED BY THE
DEPARTMENT;

S. 7508                            24                            A. 9508

  4. THE NUMBER OF VIOLATIONS RECORDED  AT  EACH  INTERSECTION  WHERE  A
RAILROAD GRADE CROSSING PHOTO VIOLATION-MONITORING SYSTEM IS USED AND IN
THE AGGREGATE ON A DAILY, WEEKLY, AND MONTHLY BASIS;
  5.  THE  TOTAL  NUMBER  OF  NOTICES OF LIABILITY ISSUED FOR VIOLATIONS
RECORDED BY SUCH SYSTEMS;
  6. THE NUMBER OF FINES AND TOTAL AMOUNT  OF  FINES  PAID  AFTER  FIRST
NOTICE OF LIABILITY ISSUED FOR VIOLATIONS RECORDED BY SUCH SYSTEMS;
  7.  THE  NUMBER  OF VIOLATIONS ADJUDICATED AND RESULTS OF SUCH ADJUDI-
CATIONS  INCLUDING  BREAKDOWNS  OF  DISPOSITIONS  MADE  FOR   VIOLATIONS
RECORDED BY SUCH SYSTEMS;
  8.  THE  TOTAL  AMOUNT OF REVENUE REALIZED BY ALL APPLICABLE POLITICAL
SUBDIVISION FROM SUCH ADJUDICATIONS;
  9. EXPENSES INCURRED BY SUCH COMMUTER RAILROAD IN CONNECTION WITH  THE
PROGRAM; AND
  10. QUALITY OF THE ADJUDICATION PROCESS AND ITS RESULTS.
  (N)  IT  SHALL  BE  AN  AFFIRMATIVE  DEFENSE  TO ANY PROSECUTION FOR A
VIOLATION OF SECTION ELEVEN HUNDRED SEVENTY OF THIS CHAPTER PURSUANT  TO
A  LOCAL LAW OR ORDINANCE ADOPTED PURSUANT TO THIS SECTION THAT THERE IS
VERIFIED EVIDENCE THAT THE RAILROAD SIGNAL INDICATIONS WERE MALFUNCTION-
ING AT THE TIME OF THE ALLEGED VIOLATION.
  § 11. The opening paragraph of subdivision 1 of section  1803  of  the
vehicle  and traffic law, as amended by chapter 385 of the laws of 1999,
is amended to read as follows:
  Except as otherwise  provided  in  subdivision  five  of  section  two
hundred  twenty-seven  of  this  chapter  [and  as provided in], SECTION
SIXTEEN HUNDRED THIRTY-THREE OF THIS CHAPTER AND section eleven  hundred
ninety-seven  of  this  chapter, section ninety of the state finance law
and sections fourteen-f and one hundred forty of the transportation law,
all fines and penalties  collected  under  a  sentence  or  judgment  of
conviction  of a violation of this chapter or of any act relating to the
use of highways by motor vehicles or trailers, now in force or hereafter
enacted, shall be distributed in the following manner:
  § 12. Section 1803 of the vehicle and traffic law is amended by adding
a new subdivision 10 to read as follows:
  10. WHERE A COMMUTER RAILROAD ESTABLISHES A  RAILROAD  GRADE  CROSSING
DEMONSTRATION  PROGRAM  PURSUANT TO SECTION SIXTEEN HUNDRED THIRTY-THREE
OF THIS CHAPTER, ALL FINES, PENALTIES AND FORFEITURES COLLECTED PURSUANT
TO SUCH SECTION SHALL BE PAID TO THE  COUNTY,  CITY,  TOWN,  OR  VILLAGE
HAVING JURISDICTION OF THE RAILROAD GRADE CROSSING.
  §  13.  Subdivision  2  of  section  87  of the public officers law is
amended by adding a new paragraph (p) to read as follows:
  (P) ARE PHOTOGRAPHS, MICROPHOTOGRAPHS,  VIDEOTAPE  OR  OTHER  RECORDED
IMAGES  PREPARED UNDER THE AUTHORITY OF SECTION ELEVEN HUNDRED SEVENTY-A
OR SECTION SIXTEEN HUNDRED THIRTY-THREE OF THE VEHICLE AND TRAFFIC LAW.
  § 14. This act shall take effect immediately; provided, however, that:
  (a) sections one, two, seven and eight of this act of this  act  shall
take  effect  on the first of November next succeeding the date on which
it shall have become a law;
  (b) sections three, four, five and six of this act shall  take  effect
October 1, 2018; and provided, further that:
  (c)  sections nine, ten, eleven, twelve and thirteen of this act shall
take effect on the thirtieth day after it shall have become a law.

                                 PART H

S. 7508                            25                            A. 9508

  Section 1. Paragraph a of section 1 of part FF of chapter  55  of  the
laws of 2017 relating to motor vehicles equipped with autonomous vehicle
technology, is amended to read as follows:
  a.  Notwithstanding  the provisions of section 1226 of the vehicle and
traffic law, the New York  state  commissioner  of  motor  vehicles  may
approve  demonstrations and tests consisting of the operation of a motor
vehicle equipped with autonomous vehicle  technology  while  such  motor
vehicle  is  engaged  in  the  use of such technology on public highways
within this state for the purposes of demonstrating  and  assessing  the
current  development of autonomous vehicle technology and to begin iden-
tifying potential impacts of such technology on safety, traffic control,
traffic enforcement, emergency services, and such other areas as may  be
identified  by  such  commissioner. Provided, however, that such [demon-
strations and tests shall only take place under the  direct  supervision
of  the New York state police. Such] demonstrations and tests shall take
place in a manner and form prescribed by the commissioner of motor vehi-
cles including, but not limited to: a requirement that a natural  person
holding  a  valid license for the operation of the motor vehicle's class
be present within such vehicle for the duration of the time it is  oper-
ated  on  public highways; a requirement that the motor vehicle utilized
in such demonstrations and tests complies with  all  applicable  federal
motor  vehicle  safety  standards  and  New  York  state  motor  vehicle
inspection standards; and a requirement that the motor vehicle  utilized
in  such  demonstrations and tests has in place, at a minimum, financial
security in the amount of five million  dollars.  Nothing  in  this  act
shall  authorize  the  motor vehicle utilized in such demonstrations and
tests to operate in violation of article 22 or title 7  of  the  vehicle
and traffic law, excluding section 1226 of such law.
  §  2.  Section 2 of part FF of chapter 55 of the laws of 2017 relating
to motor  vehicles  equipped  with  autonomous  vehicle  technology,  is
amended to read as follows:
  §  2.  The  commissioner of motor vehicles shall, in consultation with
the superintendent of state police, submit a report to the governor, the
temporary president of the senate, the speaker of the assembly, and  the
chairs  of  the  senate  and  assembly  transportation committees on the
demonstrations and tests authorized by section one  of  this  act.  Such
report shall include, but not be limited to, a description of the param-
eters  and  purpose  of  such  demonstrations and tests, the location or
locations where demonstrations and  tests  were  conducted,  the  demon-
strations'  and  tests'  impacts  on  safety,  traffic  control, traffic
enforcement, emergency services, and such other areas as may be  identi-
fied by such commissioner. Such commissioner shall submit such report on
or  before  June  [1,  2018]  FIRST OF EACH YEAR SECTION ONE OF THIS ACT
REMAINS IN EFFECT.
  § 3. Section 3 of part FF of chapter 55 of the laws of  2017  relating
to  motor  vehicles  equipped  with  autonomous  vehicle  technology, is
amended to read as follows:
  § 3. This act shall take effect April 1, 2017; provided, however, that
section one of this act shall expire and be  deemed  repealed  April  1,
[2018] 2020.
  §  4. a. The New York state commissioner of motor vehicles may approve
demonstrations and tests consisting of the operation of a motor  vehicle
equipped  with autonomous vehicle technology while such motor vehicle is
engaged in the use of such technology on  public  highways  within  this
state for the purposes of demonstrating and assessing the current devel-
opment  of autonomous vehicle technology and to begin identifying poten-

S. 7508                            26                            A. 9508

tial impacts of such technology  on  safety,  traffic  control,  traffic
enforcement,  emergency services, and such other areas as may be identi-
fied by such commissioner. Such  demonstrations  and  tests  shall  take
place in a manner and form prescribed by the commissioner of motor vehi-
cles including, but not limited to: a requirement that the motor vehicle
utilized  in  such demonstrations and tests complies with all applicable
federal motor vehicle safety standards and New York state motor  vehicle
inspection  standards; and a requirement that the motor vehicle utilized
in such demonstrations and tests has in place, at a  minimum,  financial
security  in  the  amount  of five million dollars.  Nothing in this act
shall authorize the motor vehicle utilized in  such  demonstrations  and
tests  to  operate  in violation of article 22 or title 7 of the vehicle
and traffic law, excluding section 1226 of such law.
  b. For the purposes of this  section,  the  term  "autonomous  vehicle
technology"  shall  mean the hardware and software that are collectively
capable of performing part or all of  the  dynamic  driving  task  on  a
sustained  basis,  and the term "dynamic driving task" shall mean all of
the real-time operational and tactical functions required to  operate  a
vehicle  in  on-road  traffic, excluding the strategic functions such as
trip scheduling and selection of destinations and waypoints.
  § 5. The commissioner of motor vehicles shall,  in  consultation  with
the superintendent of state police, submit a report to the governor, the
temporary  president of the senate, the speaker of the assembly, and the
chairs of the senate  and  assembly  transportation  committees  on  the
demonstrations  and  tests  authorized by section four of this act. Such
report shall include, but not be limited to, a description of the param-
eters and purpose of such demonstrations  and  tests,  the  location  or
locations  where  demonstrations  and  tests  were conducted, the demon-
strations' and  tests'  impacts  on  safety,  traffic  control,  traffic
enforcement,  emergency services, and such other areas as may be identi-
fied by such commissioner. Such commissioner shall submit such report on
or before June first of each year section four of this  act  remains  in
effect.
  § 6. Section 1226 of the vehicle and traffic law is REPEALED.
  §  7.  The  commissioner  of  motor vehicles and the superintendent of
financial services shall establish regulations consistent with this act.
  § 8. This act shall take effect immediately; provided, however, that:
  (a) the amendments to subdivision a of section 1 of part FF of chapter
55 of the laws of 2017 made by section one of this act shall not  affect
the repeal of such section and shall be deemed to be repealed therewith;
and
  (b) sections four, five and six of this act shall take effect April 1,
2020.

                                 PART I

  Section  1.  The closing paragraph of subdivision 3 of section 99-a of
the state finance law, as amended by section 3 of part GG of chapter  55
of the laws of 2017, is amended to read as follows:
  The comptroller may require such reporting and record keeping as he or
she  deems  necessary  to  ensure  the  proper distribution of moneys in
accordance with applicable laws. A  justice  court  or  the  Nassau  and
Suffolk  counties traffic and parking violations agencies or the city of
Buffalo traffic violations agency [or the city of New York  pursuant  to
article  two-A  of the vehicle and traffic law] may utilize these proce-

S. 7508                            27                            A. 9508

dures only when permitted by the comptroller, and such permission,  once
given, may subsequently be withdrawn by the comptroller on due notice.
  §  2.  The  closing  paragraph of subdivision 3 of section 99-a of the
state finance law, as amended by section 10 of chapter 157 of  the  laws
of 2017, is amended to read as follows:
  The comptroller may require such reporting and record keeping as he or
she  deems  necessary  to  ensure  the  proper distribution of moneys in
accordance with applicable laws. A  justice  court  or  the  Nassau  and
Suffolk  counties traffic and parking violations agencies or the city of
Buffalo traffic violations agency  or  the  city  of  Rochester  traffic
violations  agency [or the city of New York pursuant to article two-A of
the vehicle and traffic law] may  utilize  these  procedures  only  when
permitted  by  the  comptroller,  and  such  permission, once given, may
subsequently be withdrawn by the comptroller on due notice.
  § 3. This act shall take effect immediately; provided,  however,  that
the amendments to the closing paragraph of subdivision 3 of section 99-a
of  the  state finance law as made by section two of this act shall take
effect on the same date and in the same manner as section 10 of  chapter
157  of the laws of 2017 takes effect, and shall be subject to the expi-
ration of such subdivision pursuant to section 4 of part GG  of  chapter
55  of  the laws of 2017, as amended, and shall be deemed expired there-
with.

                                 PART J

  Section 1. The vehicle and traffic law is  amended  by  adding  a  new
article 12-D to read as follows:
                               ARTICLE 12-D
               PRE-LICENSING COURSE INTERNET PILOT PROGRAM
SECTION 399-P. PRE-LICENSING COURSE INTERNET PILOT PROGRAM.
        399-Q. APPLICATION.
        399-R. REGULATIONS AND FEES.
        399-S. PILOT PROGRAM SCOPE AND DURATION.
        399-T. REPORT BY COMMISSIONER.
  § 399-P. PRE-LICENSING COURSE INTERNET PILOT PROGRAM. THE COMMISSIONER
SHALL  ESTABLISH,  BY REGULATION, A COMPREHENSIVE PILOT PROGRAM TO ALLOW
USE OF THE  INTERNET,  FOR  THE  ADMINISTRATION  AND  COMPLETION  OF  AN
APPROVED  PRE-LICENSING  COURSE, WHICH SHALL BE DEEMED THE EQUIVALENT OF
THE COURSE REQUIRED BY SUBPARAGRAPH (I) OF PARAGRAPH (A) OF  SUBDIVISION
FOUR OF SECTION FIVE HUNDRED TWO OF THIS CHAPTER.
  §  399-Q.  APPLICATION.  AN  APPLICANT  FOR PARTICIPATION IN THE PILOT
PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE SHALL BE AN APPROVED  SPON-
SOR  OF  AN  INTERNET  ACCIDENT  PREVENTION  COURSE, PURSUANT TO ARTICLE
TWELVE-C OF THIS TITLE, PRIOR TO THE EFFECTIVE DATE OF THIS ARTICLE.  IN
ORDER TO BE APPROVED FOR PARTICIPATION IN SUCH PILOT PROGRAM, THE COURSE
MUST  COMPLY  WITH  PROVISIONS  OF LAW, RULES AND REGULATIONS APPLICABLE
THERETO. THE COMMISSIONER MAY, IN HIS OR HER DISCRETION,  IMPOSE  A  FEE
FOR  THE SUBMISSION OF EACH APPLICATION. SUCH FEE SHALL NOT EXCEED SEVEN
THOUSAND FIVE HUNDRED DOLLARS, WHICH SHALL BE DEPOSITED IN THE DEDICATED
HIGHWAY AND BRIDGE TRUST FUND ESTABLISHED PURSUANT  TO  SECTION  EIGHTY-
NINE-B OF THE STATE FINANCE LAW.
  §  399-R.  REGULATIONS  AND FEES. 1. THE COMMISSIONER IS AUTHORIZED TO
PROMULGATE  ANY  RULES  AND  REGULATIONS  NECESSARY  TO  IMPLEMENT   THE
PROVISIONS  OF  THIS  ARTICLE  AND  TO  INSURE  THAT  THE INTERNET PILOT
PROGRAM, AS APPROVED BY THE COMMISSIONER, CAN VALIDATE: STUDENT IDENTITY
AT REGISTRATION AND THROUGHOUT THE COURSE; PARTICIPATION THROUGHOUT  THE

S. 7508                            28                            A. 9508

COURSE; THAT TIME THE REQUIREMENTS ARE MET; AND SUCCESSFUL COMPLETION OF
THE COURSE. PROVIDED, HOWEVER, THAT ANY RULES AND REGULATIONS PROMULGAT-
ED  PURSUANT TO THIS ARTICLE SHALL NOT STIPULATE ANY PARTICULAR LOCATION
FOR  DELIVERY  OF A PRE-LICENSING COURSE OR LIMIT THE TIME OF DAY DURING
WHICH SUCH COURSE MAY BE TAKEN.
  2. THE COMMISSIONER IS AUTHORIZED TO IMPOSE A FEE  UPON  EACH  PRE-LI-
CENSING  COURSE SPONSORING AGENCY APPROVED TO DELIVER SUCH COURSE, WHICH
SHALL NOT EXCEED EIGHT DOLLARS  FOR  EACH  STUDENT  WHO  COMPLETES  SUCH
COURSE, AND WHICH SHALL BE DEPOSITED IN THE DEDICATED HIGHWAY AND BRIDGE
TRUST  FUND  ESTABLISHED  PURSUANT TO SECTION EIGHTY-NINE-B OF THE STATE
FINANCE LAW.
  § 399-S. PILOT PROGRAM SCOPE  AND  DURATION.  THE  COMMISSIONER  SHALL
CONDUCT  A PILOT PROGRAM DESIGNED TO EVALUATE UTILIZING THE INTERNET FOR
DELIVERING AN APPROVED PRE-LICENSING COURSE, WHICH SHALL BE  DEEMED  THE
EQUIVALENT  OF  THE COURSE REQUIRED BY SUBPARAGRAPH (I) OF PARAGRAPH (A)
OF SUBDIVISION FOUR OF SECTION FIVE HUNDRED  TWO  OF  THIS  CHAPTER,  BY
PERMITTING  QUALIFIED APPLICANTS TO PARTICIPATE IN THE PILOT PROGRAM FOR
A PERIOD OF FIVE YEARS.
  § 399-T. REPORT BY COMMISSIONER. WITHIN FIVE YEARS OF  THE  ESTABLISH-
MENT  AND  IMPLEMENTATION OF THIS ARTICLE, THE COMMISSIONER SHALL REPORT
TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE AND  THE  SPEAKER
OF  THE  ASSEMBLY ON THE PRE-LICENSING COURSE INTERNET PILOT PROGRAM AND
ITS RESULTS. SUCH REPORTS SHALL INCLUDE RECOMMENDATIONS AS TO THE FUTURE
USE OF INTERNET AS AN EFFECTIVE WAY, IN ADDITION TO CLASSROOM  PRESENTA-
TION, TO DELIVER TO THE PUBLIC APPROVED PRE-LICENSING COURSES, AND QUAL-
IFICATIONS   FOR   PARTICIPANTS  IN  SUCH  APPROVED  INTERNET  DELIVERED
PROGRAMS.
  § 2. Paragraph (h) of subdivision 4 of section 502 of the vehicle  and
traffic  law,  as added by section 1 of part L of chapter 59 of the laws
of 2009, is amended to read as follows:
  (h) Course completion certificate fee. The fee for a course completion
certificate provided by the department to an entity that is approved  by
the  commissioner  to  offer  the pre-licensing course, required by this
subdivision,  for  issuance  by  such  entity  to  students  upon  their
completion  of  such  pre-licensing course shall be one dollar. Such fee
shall be paid by such entity and shall not be charged to  a  person  who
takes  the course in any manner.  THE PROVISIONS OF THIS PARAGRAPH SHALL
NOT APPLY TO A PRE-LICENSING  COURSE  ESTABLISHED  PURSUANT  TO  ARTICLE
TWELVE-D OF THIS CHAPTER.
  § 3. This act shall take effect on the one hundred eightieth day after
it  shall have become a law and shall expire and be deemed repealed five
years after the  date  that  the  pre-licensing  course  internet  pilot
program  is  established  and  implemented  by the commissioner of motor
vehicles pursuant to article 12-D of the vehicle  and  traffic  law,  as
added  by  section  one  of  this act; provided that any rules and regu-
lations necessary to implement the provisions of this act on its  effec-
tive  date are authorized and directed to be completed on or before such
date; and provided, further, that the  commissioner  of  motor  vehicles
shall  notify the legislative bill drafting commission of the date he or
she establishes and implements the pre-licensing course  internet  pilot
program  pursuant  to  article  12-D  of the vehicle and traffic law, as
added by section one of this act, in  order  that  such  commission  may
maintain an accurate and timely effective data base of the official text
of  the  laws  of  the state of New York in furtherance of effecting the
provisions of section 44 of the legislative law and section 70-b of  the
public officers law.

S. 7508                            29                            A. 9508

                                 PART K

  Section 1. Section 399-1 of the vehicle and traffic law, as amended by
section  1  of  part  D of chapter 58 of the laws of 2016, is amended to
read as follows:
  § 399-l.  Application.  Applicants  for  participation  in  the  pilot
program  established pursuant to this article shall be among those acci-
dent prevention course sponsoring agencies that have a  course  approved
by  the commissioner pursuant to article twelve-B of this title prior to
the effective date of this article and which deliver such course to  the
public.   Provided,  however,  the  commissioner  may,  in  his  or  her
discretion, approve  applications  after  such  date.  In  order  to  be
approved for participation in such pilot program, the course must comply
with  the  provisions  of law, rules and regulations applicable thereto.
The commissioner may, in his or her discretion, impose  a  fee  for  the
submission  of  each  application  to  participate  in the pilot program
established pursuant to this article. Such fee shall  not  exceed  seven
thousand  five  hundred  dollars.  [The  proceeds from such fee shall be
deposited by the comptroller into the  special  obligation  reserve  and
payment  account  of  the dedicated highway and bridge trust fund estab-
lished pursuant to section eighty-nine-b of the state  finance  law  for
the purposes established in this section.]
  §  2.  Paragraph  a of subdivision 5 of section 410 of the vehicle and
traffic law, as amended by section 4 of part D of chapter 58 of the laws
of 2016, is amended to read as follows:
  a. The annual fee for registration or reregistration of  a  motorcycle
shall  be  eleven dollars and fifty cents.  Beginning April first, nine-
teen hundred ninety-eight the annual fee for registration or reregistra-
tion of a motorcycle shall be seventeen dollars  and  fifty  cents[,  of
which  two dollars and fifty cents shall be deposited by the comptroller
into the special obligation reserve and payment account of the dedicated
highway and bridge trust fund established pursuant  to  section  eighty-
nine-b  of  the  state  finance law for the purposes established in this
section].
  § 3. Paragraph (c-1) of subdivision 2 of section 503  of  the  vehicle
and  traffic law, as amended by section 5 of part D of chapter 58 of the
laws of 2016, is amended to read as follows:
  (c-1) In addition to the fees established in paragraphs (b) and (c) of
this subdivision, a fee of fifty cents for each six  months  or  portion
thereof of the period of validity shall be paid upon the issuance of any
permit, license or renewal of a license which is valid for the operation
of a motorcycle, except a limited use motorcycle. [Fees collected pursu-
ant  to  this  paragraph  shall be deposited by the comptroller into the
special obligation reserve and payment account of the dedicated  highway
and  bridge  trust fund established pursuant to section eighty-nine-b of
the state finance law for the purposes established in this section.]
  § 4. Subdivision 5 of section 317 of the vehicle and  traffic  law  is
REPEALED.
  §  5.  Paragraph  (b) of subdivision 1-a of section 318 of the vehicle
and traffic law, as amended by section 9 of part D of chapter 58 of  the
laws of 2016, is amended to read as follows:
  (b)  Notwithstanding  the provisions of paragraph (a) of this subdivi-
sion, an order of suspension issued pursuant to paragraph (a) or (e)  of
this subdivision may be terminated if the registrant pays to the commis-
sioner a civil penalty in the amount of eight dollars for each day up to
thirty  days  for  which  financial security was not in effect, plus ten

S. 7508                            30                            A. 9508

dollars for each day from the thirty-first to the sixtieth day for which
financial security was not in effect, plus twelve dollars for  each  day
from  the  sixty-first to the ninetieth day for which financial security
was  not  in  effect. [Of each eight dollar penalty, six dollars will be
deposited in the general fund and two dollars in the special  obligation
reserve  and  payment  account of the dedicated highway and bridge trust
fund established pursuant to section eighty-nine-b of the state  finance
law  for  the  purposes established in this section.] Of each ten dollar
penalty collected, [six] EIGHT dollars will be deposited in the  general
fund[,  two  dollars will be deposited in the special obligation reserve
and payment account of the  dedicated  highway  and  bridge  trust  fund
established  pursuant  to section eighty-nine-b of the state finance law
for the purposes established in this section,] and two dollars shall  be
deposited  in  the  dedicated  highway and bridge trust fund established
pursuant to section eighty-nine-b of the state finance law and the dedi-
cated mass transportation fund established pursuant to  section  eighty-
nine-c  of  the  state  finance  law  and  distributed  according to the
provisions of subdivision (d) of section three hundred one-j of the  tax
law.  Of  each twelve dollar penalty collected, [six] EIGHT dollars will
be deposited into the general fund[, two dollars will be deposited  into
the  special  obligation  reserve  and  payment account of the dedicated
highway and bridge trust fund established pursuant  to  section  eighty-
nine-b  of  the  state  finance law for the purposes established in this
section,] and four dollars shall be deposited in the  dedicated  highway
and  bridge  trust fund established pursuant to section eighty-nine-b of
the state finance law and the dedicated mass transportation fund  estab-
lished  pursuant  to  section eighty-nine-c of the state finance law and
distributed according to the provisions of subdivision  (d)  of  section
three  hundred one-j of the tax law. The foregoing provision shall apply
only once during any thirty-six month period and only if the  registrant
surrendered  the  certificate  of  registration and number plates to the
commissioner not more than ninety days from the date of  termination  of
financial security or submits to the commissioner new proof of financial
security  which  took  effect  not more than ninety days from the termi-
nation of financial security.
  § 6. Subdivision 6 of section 423-a of the vehicle and traffic law  is
REPEALED.
  §  7.  Paragraph  (a)  of  subdivision  3 of section 89-b of the state
finance law, as amended by section 11 of part D of  chapter  58  of  the
laws of 2016, is amended to read as follows:
  (a)  The  special obligation reserve and payment account shall consist
(i) of all moneys required to be deposited in the dedicated highway  and
bridge  trust  fund  pursuant  to the provisions of sections two hundred
five, two hundred  eighty-nine-e,  three  hundred  one-j,  five  hundred
fifteen  and  eleven  hundred  sixty-seven  of the tax law, section four
hundred one of the vehicle and traffic law, and  section  thirty-one  of
chapter fifty-six of the laws of nineteen hundred ninety-three, (ii) all
fees, fines or penalties collected by the commissioner of transportation
and  the  commissioner  of motor vehicles pursuant to section fifty-two,
section three hundred twenty-six, section eighty-eight  of  the  highway
law,  subdivision fifteen of section three hundred eighty-five[, section
four hundred twenty-three-a, section four  hundred  ten,  section  three
hundred seventeen, section three hundred eighteen, article twelve-C, and
paragraph (c-1) of subdivision two of section five hundred three] of the
vehicle  and  traffic law, section two of the chapter of the laws of two
thousand three that amended this paragraph, subdivision (d)  of  section

S. 7508                            31                            A. 9508

three  hundred  four-a, paragraph one of subdivision (a) and subdivision
(d) of section three hundred five, subdivision  six-a  of  section  four
hundred  fifteen and subdivision (g) of section twenty-one hundred twen-
ty-five of the vehicle and traffic law, section fifteen of this chapter,
excepting  moneys  deposited  with  the  state on account of betterments
performed pursuant to subdivision twenty-seven  or  subdivision  thirty-
five  of  section ten of the highway law, and [sections ninety-four, one
hundred thirty-five, and] SECTION one hundred forty-five of  the  trans-
portation law, (iii) any moneys collected by the department of transpor-
tation  for  services  provided  pursuant  to agreements entered into in
accordance with section ninety-nine-r of the general municipal law,  and
(iv)  any  other  moneys  collected  therefor or credited or transferred
thereto from any other fund, account or source.
  § 8. Paragraph (a) of subdivision 3  of  section  89-b  of  the  state
finance  law,  as  amended  by section 12 of part D of chapter 58 of the
laws of 2016, is amended to read as follows:
  (a) The special obligation reserve and payment account  shall  consist
(i)  of all moneys required to be deposited in the dedicated highway and
bridge trust fund pursuant to the provisions  of  sections  two  hundred
eighty-nine-e,  three  hundred  one-j,  five  hundred fifteen and eleven
hundred sixty-seven of the tax law, section  four  hundred  one  of  the
vehicle  and traffic law, and section thirty-one of chapter fifty-six of
the laws of nineteen hundred  ninety-three,  (ii)  all  fees,  fines  or
penalties  collected  by  the  commissioner  of  transportation  and the
commissioner of motor vehicles pursuant to  section  fifty-two,  section
three  hundred  twenty-six,  section  eighty-eight  of  the highway law,
subdivision fifteen of section three hundred eighty-five[, section  four
hundred  twenty-three-a, section four hundred ten, section three hundred
seventeen, section three hundred eighteen, article twelve-C,  and  para-
graph  (c-1)  of  subdivision  two of section five hundred three] of the
vehicle and traffic law, section  fifteen  of  this  chapter,  excepting
moneys  deposited  with  the  state  on account of betterments performed
pursuant to  subdivision  twenty-seven  or  subdivision  thirty-five  of
section  ten  of the highway law, and [sections ninety-four, one hundred
thirty-five, and] SECTION one hundred forty-five of  the  transportation
law,  (iii) any moneys collected by the department of transportation for
services provided pursuant to agreements entered into in accordance with
section ninety-nine-r of the general municipal law, and (iv)  any  other
moneys  collected  therefor  or credited or transferred thereto from any
other fund, account or source.
  § 9. Subdivision  4  of  section  94  of  the  transportation  law  is
REPEALED.
  §  10.  Subdivision  4  of  section  135 of the transportation law, as
amended by section 4 of part C of chapter 57 of the  laws  of  2014,  is
amended to read as follows:
  4. [All revenues collected pursuant to this section shall be deposited
by  the  comptroller  into  the  special  obligation reserve and payment
account of the dedicated  highway  and  bridge  trust  fund  established
pursuant  to  section  eighty-nine-b  of  the  state finance law for the
purposes established in this section.] Fees will be  based  on  revenues
from the preceding calendar year and shall be assessed on or before July
first  and  are  payable  by  September first of each year. On or before
January first of each year following assessment of fees pursuant to this
section, the commissioner shall report to the railroad companies  annual
costs associated with this assessment.

S. 7508                            32                            A. 9508

  §  11.  Subsection  (b)  of  section 805 of the tax law, as amended by
section 1 of part C of chapter 25 of the laws of  2009,  is  amended  to
read as follows:
  (b)  On  or before the twelfth and twenty-sixth day of each succeeding
month, after reserving such amount for such refunds and  deducting  such
amounts  for  such  costs,  as  provided  for  in subsection (a) of this
section, the commissioner shall certify to the comptroller the amount of
all revenues so received during the prior  month  as  a  result  of  the
taxes,  interest  and  penalties  so  imposed. The amount of revenues so
certified shall be paid over by the fifteenth and the final business day
of each succeeding month from such account  WITHOUT  APPROPRIATION  into
the  [mobility  tax  trust  account  of  the metropolitan transportation
authority financial assistance  fund  established  pursuant  to  section
ninety-two-ff  of the state finance law, for payment, pursuant to appro-
priations by the legislature to the] metropolitan transportation author-
ity finance fund established pursuant to section twelve  hundred  seven-
ty-h  of  the  public  authorities  law,  PROVIDED,  HOWEVER,  THAT  THE
COMPTROLLER SHALL ENSURE THAT ANY PAYMENTS TO THE METROPOLITAN TRANSPOR-
TATION AUTHORITY FINANCE FUND WHICH ARE DUE TO  BE  PAID  BY  THE  FINAL
BUSINESS  DAY IN THE MONTH OF DECEMBER PURSUANT TO THIS SUBSECTION SHALL
BE RECEIVED BY THE METROPOLITAN TRANSPORTATION AUTHORITY FINANCE FUND ON
THE SAME BUSINESS DAY IN WHICH IT IS PAID.
  § 12. Section 4 of the state finance law is amended by  adding  a  new
subdivision 12 to read as follows:
  12.  NOTWITHSTANDING SUBDIVISION ONE OF THIS SECTION AND ANY OTHER LAW
TO THE CONTRARY, THE REVENUE (INCLUDING TAXES, INTEREST  AND  PENALTIES)
FROM  THE  METROPOLITAN  COMMUTER  TRANSPORTATION  MOBILITY  TAX IMPOSED
PURSUANT TO ARTICLE TWENTY-THREE OF  THE  TAX  LAW  WHICH  ARE  PAID  IN
ACCORDANCE  WITH SUBSECTION (B) OF SECTION EIGHT HUNDRED FIVE OF THE TAX
LAW INTO THE METROPOLITAN TRANSPORTATION AUTHORITY FINANCE  FUND  ESTAB-
LISHED BY SECTION TWELVE HUNDRED SEVENTY-H OF THE PUBLIC AUTHORITIES LAW
SHALL BE MADE PURSUANT TO STATUTE BUT WITHOUT AN APPROPRIATION.
  §  13.  Subdivision 2 of section 1270-h of the public authorities law,
as added by section 16 of part H of chapter 25 of the laws of  2009,  is
amended to read as follows:
  2.  The comptroller shall deposit INTO THE METROPOLITAN TRANSPORTATION
AUTHORITY FINANCE FUND (A) monthly, pursuant to appropriation, [into the
metropolitan transportation authority finance fund] the moneys deposited
in the mobility tax trust account  of  the  metropolitan  transportation
authority financial assistance fund pursuant to [article twenty-three of
the  tax  law, and] any [other] provision of law directing or permitting
the deposit of moneys in such fund, AND (B) WITHOUT  APPROPRIATION,  THE
REVENUE  INCLUDING TAXES, INTEREST AND PENALTIES COLLECTED IN ACCORDANCE
WITH ARTICLE TWENTY-THREE OF THE TAX LAW.
  § 14. Subdivisions 3 and 5 of section 92-ff of the state finance  law,
as  added by section 16 of part G of chapter 25 of the laws of 2009, are
amended to read as follows:
  3. Such fund shall consist of all moneys collected [therefore]  THERE-
FOR  or  credited or transferred thereto from any other fund, account or
source, including, without limitation, the [revenues  derived  from  the
metropolitan  commuter  transportation  mobility  tax imposed by article
twenty-three of the tax law;] revenues derived from the special  supple-
mental  tax  on  passenger car rentals imposed by section eleven hundred
sixty-six-a of the tax law; revenues  derived  from  the  transportation
surcharge  imposed  by article twenty-nine-A of the tax law; the supple-
mental registration fees imposed by article seventeen-C of  the  vehicle

S. 7508                            33                            A. 9508

and  traffic law; and the supplemental metropolitan commuter transporta-
tion district license fees imposed by section five hundred three of  the
vehicle  and  traffic  law.  Any interest received by the comptroller on
moneys on deposit in the metropolitan transportation authority financial
assistance fund shall be retained in and become a part of such fund.
  5.  (a)  The  "mobility  tax trust account" shall consist of [revenues
required to be deposited therein pursuant to the provisions  of  article
twenty-three  of  the  tax  law and all other] moneys credited or trans-
ferred thereto from any [other] fund or source pursuant to law.
  (b) Moneys in the "mobility tax  trust  account"  shall,  pursuant  to
appropriation  by  the legislature, be transferred on a monthly basis to
the metropolitan transportation authority finance  fund  established  by
section  twelve  hundred  seventy-h  of  the  public authorities law and
utilized in accordance with said section. It is the intent of the legis-
lature to enact two appropriations from the mobility tax  trust  account
to the metropolitan transportation authority finance fund established by
section twelve hundred seventy-h of the public authorities law. One such
appropriation  shall  be  equal  to the amounts expected to be available
[for such purpose pursuant to article twenty-three of the  tax  law  or]
from  any  [other] monies described in paragraph (a) of this subdivision
during the two thousand [nine]  EIGHTEEN--two  thousand  [ten]  NINETEEN
fiscal  year  and shall be effective in that fiscal year. The other such
appropriation shall be equal to the amounts  expected  to  be  available
[for  such  purpose  pursuant to article twenty-three of the tax law or]
from any [other] monies described in paragraph (a) of  this  subdivision
during  the  two  thousand  [ten] NINETEEN--two thousand [eleven] TWENTY
fiscal year and shall, notwithstanding the provisions of  section  forty
of  this chapter, take effect on the first day of the two thousand [ten]
NINETEEN--two thousand [eleven] TWENTY fiscal year and lapse on the last
day of that fiscal year. It is the intent of the governor to submit  and
the  legislature  to  enact  for each fiscal year after the two thousand
[nine] EIGHTEEN--two thousand [ten] NINETEEN fiscal year  in  an  annual
budget  bill:  (i) an appropriation for the amount expected to be avail-
able in the mobility tax trust account during such fiscal year  for  the
metropolitan  transportation authority [pursuant to article twenty-three
of the tax law or] FROM any [other] monies described in paragraph (a) of
this subdivision; and (ii) an appropriation for the amount projected  by
the  director  of  the  budget to be deposited in the mobility tax trust
account [pursuant to article twenty-three of the tax law  or]  from  any
[other]  monies  described  in paragraph (a) of this subdivision for the
next succeeding fiscal year. Such appropriation for payment of  revenues
projected  to be deposited in the succeeding fiscal year shall, notwith-
standing the provisions of section forty of this chapter, take effect on
the first day of such succeeding fiscal year and lapse on the  last  day
of  such  fiscal year. If for any fiscal year commencing on or after the
first day of April, two thousand ten the  governor  fails  to  submit  a
budget  bill containing the foregoing, or the legislature fails to enact
a bill  with  such  provisions,  then  the  metropolitan  transportation
authority  shall notify the comptroller, the director of the budget, the
chairperson of the senate finance committee and the chairperson  of  the
assembly  ways  and  means committee of amounts required to be disbursed
from the appropriation made during the preceding fiscal year for payment
in such fiscal year. In no event shall the comptroller make any payments
from such appropriation prior to May first  of  such  fiscal  year,  and
unless  and  until  the  director  of the budget, the chairperson of the
senate finance committee and the chairperson of the  assembly  ways  and

S. 7508                            34                            A. 9508

means  committee  have  been  notified  of the required payments and the
timing of such payments to be made from the mobility tax  trust  account
to the metropolitan transportation authority finance fund established by
section  twelve hundred seventy-h of the public authorities law at least
forty-eight hours prior  to  any  such  payments.  Until  such  time  as
payments  pursuant  to  such appropriation are made in full, revenues in
the mobility tax trust account shall not be  paid  over  to  any  person
other than the metropolitan transportation authority.
  § 15. This act shall take effect April 1, 2018; provided however, that
the  amendments  to section 399-l of the vehicle and traffic law made by
section one of this act shall not affect the repeal of such section  and
shall  be deemed repealed therewith; and provided further, however, that
the amendments to paragraph (a) of subdivision 3 of section 89-b of  the
state  finance law made by section seven of this act shall be subject to
the expiration and reversion of such paragraph pursuant to section 13 of
part U1 of chapter 62 of the laws of 2003, as amended,  when  upon  such
date the provisions of section eight of this act shall take effect.

                                 PART L

  Section  1.  Legislative  findings and declaration. It is hereby found
and declared that:
  Within the metropolitan commuter transportation district  created  and
established  by  section  1262  of the public authorities law there have
been and will be geographic areas  that  receive  special  economic  and
other  benefits  from  capital  elements undertaken in connection with a
capital program approved  pursuant  to  section  1269-b  of  the  public
authorities law.
  It  is  further  found  and  declared that it is a matter of statewide
concern that the transportation facilities of the metropolitan transpor-
tation authority, the New York city transit authority and their  subsid-
iaries  be  maintained and expanded to ensure the economic health of the
metropolitan commuter transportation district and in furtherance thereof
that all of the real property within those subdistricts that are  deter-
mined  to be the beneficiary of such special economic and other benefits
should contribute to the  funding  of  the  metropolitan  transportation
authority's  capital programs at a level determined to be appropriate to
the special benefits received within such subdistrict.
  For these reasons it is declared that these changes are  necessary  to
protect  and promote the sound enhancement, renewal and expansion of the
transportation facilities of the metropolitan transportation  authority,
the  New  York  city transit authority and their subsidiaries, including
the planning, design, acquisition, construction,  reconstruction,  reha-
bilitation  and improvement of such facilities through the establishment
of transportation improvement subdistricts and the use of  increases  in
the  fair  market  value of real property in such subdistricts resulting
from such improvements to transportation facilities to  provide  funding
for   the   metropolitan  transportation  authority's  approved  capital
programs.
  § 2. Section 1261 of the public authorities law is amended by adding a
new subdivision 25 to read as follows:
  25. "TRANSPORTATION IMPROVEMENT SUBDISTRICT" SHALL MEAN AN AREA WITHIN
THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT WHICH  AREA  HAS  BEEN
ESTABLISHED  PURSUANT  TO  SECTION  TWELVE  HUNDRED SIXTY-NINE-H OF THIS
ARTICLE AND INCLUDED ON THE LIST OF TRANSPORTATION  IMPROVEMENT  SUBDIS-
TRICTS AS PROVIDED IN ARTICLE FIFTEEN-D OF THE REAL PROPERTY TAX LAW.

S. 7508                            35                            A. 9508

  §  3.  The  public  authorities law is amended by adding a new section
1269-h to read as follows:
  § 1269-H. TRANSPORTATION IMPROVEMENT SUBDISTRICTS. 1. THE BOARD OF THE
METROPOLITAN  TRANSPORTATION  AUTHORITY SHALL ESTABLISH A TRANSPORTATION
IMPROVEMENT SUBDISTRICT PURSUANT TO THE  PROCEDURE  SET  FORTH  IN  THIS
SECTION INCLUDING, BUT NOT LIMITED TO, THE PROJECTS LISTED BELOW:
  (A)  PHASES  ONE,  TWO,  THREE  AND  FOUR  OF THE SECOND AVENUE SUBWAY
PROJECT;
  (B) THE PROJECT TO BRING THE LONG ISLAND RAIL ROAD INTO GRAND  CENTRAL
TERMINAL ("EAST SIDE ACCESS PROJECT");
  (C) PENN STATION ACCESS; AND
  (D) 125TH MNR AND SUBWAY STATIONS.
  2.  FROM  TIME  TO  TIME, THE BOARD OF THE METROPOLITAN TRANSPORTATION
AUTHORITY MAY CREATE AND ESTABLISH  TRANSPORTATION  IMPROVEMENT  SUBDIS-
TRICTS  AS  IT DEEMS NECESSARY AND APPROPRIATE PROVIDED THAT THE PLANNED
CAPITAL PROGRAM  ELEMENTS  IN  AN  APPROVED  CAPITAL  PROGRAM  THAT  ARE
EXPECTED TO RESULT IN AN INCREASE IN THE FAIR MARKET VALUE OF REAL PROP-
ERTY  IN  SUCH  TRANSPORTATION IMPROVEMENT SUBDISTRICT HAVE AN ESTIMATED
CAPITAL COST GREATER THAN ONE HUNDRED MILLION DOLLARS.
  3. PRIOR TO THE VOTE BY THE BOARD OF THE  METROPOLITAN  TRANSPORTATION
AUTHORITY  TO  CREATE AND ESTABLISH A TRANSPORTATION IMPROVEMENT SUBDIS-
TRICT, THE FOLLOWING SHALL HAVE OCCURRED:
  (A) THE LEGAL DESCRIPTION OF  THE  BOUNDARIES  OF  THE  TRANSPORTATION
IMPROVEMENT  SUBDISTRICT  SHALL  HAVE  BEEN  PREPARED.  A TRANSPORTATION
IMPROVEMENT SUBDISTRICT MAY BE ESTABLISHED ANYWHERE WITHIN A CITY  OF  A
POPULATION OF ONE MILLION OR MORE THAT IS WITHIN THE METROPOLITAN COMMU-
TER  TRANSPORTATION  DISTRICT PROVIDED THAT A TRANSPORTATION IMPROVEMENT
SUBDISTRICT SHALL INCLUDE ONLY WHOLE TAX PARCELS, BUT  SHALL  EXTEND  NO
FURTHER  THAN ONE MILE IN ANY DIRECTION FROM ANY PART OF THE TRANSPORTA-
TION IMPROVEMENT.
  (B) THERE SHALL HAVE BEEN AN ANALYSIS PERFORMED BY OR ON BEHALF OF THE
AUTHORITY AND SUBMITTED TO THE BOARD OF THE METROPOLITAN  TRANSPORTATION
AUTHORITY  THAT  INDICATES  THAT  THE AGGREGATE FAIR MARKET VALUE OF THE
REAL PROPERTY WITHIN THE  PROPOSED  BOUNDARIES  OF  SUCH  TRANSPORTATION
IMPROVEMENT  SUBDISTRICT  INCREASED OR IS FORECAST TO INCREASE MORE THAN
IT WOULD HAVE INCREASED IF  NO  WORK  PERFORMED  OR  ANTICIPATED  TO  BE
PERFORMED PURSUANT TO ONE OR MORE CAPITAL PROGRAM ELEMENTS HAD OCCURRED.
SUCH  ANALYSIS  SHALL  IDENTIFY GENERALLY THE ESTIMATED LEVEL OF AVERAGE
INCREMENTAL INCREASE IN THE FAIR MARKET VALUE OF  REAL  PROPERTY  WITHIN
THE  PROPOSED  TRANSPORTATION IMPROVEMENT SUBDISTRICT AS A RESULT OF THE
IMPLEMENTATION OF THE SPECIFIED CAPITAL PROGRAM ELEMENTS SINCE  NINETEEN
HUNDRED EIGHTY-ONE.
  (C)  THE AUTHORITY SHALL CONDUCT A PUBLIC HEARING ON THE ESTABLISHMENT
OF SUCH PROPOSED TRANSPORTATION IMPROVEMENT SUBDISTRICT. NOTICE  OF  THE
HEARING  SHALL:  (I)  BE  WRITTEN  IN  A CLEAR AND COHERENT MANNER; (II)
GENERALLY  IDENTIFY  THE  BOUNDARIES  OF  THE  PROPOSED   TRANSPORTATION
IMPROVEMENT  SUBDISTRICT;  (III) STATE THE PERCENTAGE OF THE INCREMENTAL
REAL PROPERTY TAX LEVIED ON ALL PARCELS WITHIN THE PROPOSED  TRANSPORTA-
TION IMPROVEMENT SUBDISTRICT THAT THE AUTHORITY PROPOSES TO BE ASSESSED;
(IV) PROVIDE THE INTERNET ADDRESS WHERE A DETAILED MAP OF THE BOUNDARIES
OF  THE  PROPOSED  TRANSPORTATION  IMPROVEMENT  SUBDISTRICT  IS PUBLICLY
ACCESSIBLE, TOGETHER WITH A COPY OF THE ANALYSIS PROVIDED TO  THE  BOARD
OF  THE  METROPOLITAN TRANSPORTATION AUTHORITY PURSUANT TO PARAGRAPH (B)
OF THIS SUBDIVISION; (V) BE SENT TO THE MAYOR OF A  CITY  WITH  A  POPU-
LATION  OF  ONE  MILLION  OR  MORE  IN WHICH THE PROPOSED TRANSPORTATION
IMPROVEMENT SUBDISTRICT IS LOCATED AT LEAST THIRTY DAYS  PRIOR  TO  SUCH

S. 7508                            36                            A. 9508

PUBLIC  HEARING;  AND  (VI)  BE POSTED ON THE AUTHORITY'S WEBSITE FOR AT
LEAST THIRTY DAYS PRIOR TO SUCH PUBLIC HEARING.
  (D)  AFTER  SUCH  HEARING AND AT ANY TIME PRIOR TO THE ADOPTION OF THE
RESOLUTION RECOMMENDING ESTABLISHMENT OF  A  TRANSPORTATION  IMPROVEMENT
SUBDISTRICT,  THE  AUTHORITY MAY AMEND THE BOUNDARIES OF THE RECOMMENDED
TRANSPORTATION IMPROVEMENT SUBDISTRICT.
  (E) THE RESOLUTION BY WHICH THE BOARD OF THE METROPOLITAN  TRANSPORTA-
TION  AUTHORITY SHALL ESTABLISH A TRANSPORTATION IMPROVEMENT SUBDISTRICT
SHALL INCLUDE A DETAILED STATEMENT OF THE REASONS WHY THE BOARD  CONSID-
ERS  THAT  THE PROPOSED TRANSPORTATION IMPROVEMENT SUBDISTRICT HAS BENE-
FITTED OR WILL BENEFIT FROM  IMPLEMENTATION  OF  THE  SPECIFIED  CAPITAL
PROGRAM  ELEMENTS  AND  SHALL  SPECIFY THE PERCENTAGE OF THE INCREMENTAL
REAL PROPERTY TAX LEVIED ON ALL PARCELS WITHIN  EACH  OF  THE  FOLLOWING
TRANSPORTATION  IMPROVEMENT SUBDISTRICTS THAT SHALL BE ASSESSED PROVIDED
THAT SUCH PERCENTAGE MAY NOT EXCEED FIFTY PERCENT.
  (F) UPON APPROVAL BY THE  BOARD  OF  THE  METROPOLITAN  TRANSPORTATION
AUTHORITY  OF  A  RESOLUTION  ESTABLISHING  A TRANSPORTATION IMPROVEMENT
SUBDISTRICT, THE AUTHORITY SHALL ADD IT TO THE LIST OF  APPROVED  TRANS-
PORTATION IMPROVEMENT SUBDISTRICTS SET FORTH IN ARTICLE FIFTEEN-D OF THE
REAL PROPERTY TAX LAW THAT IT SHALL MAINTAIN ON THE AUTHORITY'S PUBLICLY
AVAILABLE  WEBSITE AND ALSO SHALL NOTIFY THE METROPOLITAN TRANSPORTATION
AUTHORITY CAPITAL PROGRAM REVIEW BOARD.
  (G) THE ADOPTION BY  THE  BOARD  OF  THE  METROPOLITAN  TRANSPORTATION
AUTHORITY  OF  A  RESOLUTION  ESTABLISHING  A TRANSPORTATION IMPROVEMENT
SUBDISTRICT SHALL NOT BE SUBJECT TO PROVISIONS OF ARTICLE  EIGHT,  NINE-
TEEN,  TWENTY-FOUR OR TWENTY-FIVE OF THE ENVIRONMENTAL CONSERVATION LAW,
OR TO ANY LOCAL LAW OR ORDINANCE ADOPTED PURSUANT TO SUCH ARTICLE.
  § 4. The real property tax law is amended by adding a new article 15-D
to read as follows:
                               ARTICLE 15-D
                  TRANSPORTATION IMPROVEMENT DISTRICTS
SECTION 1596. DEFINITIONS.
        1597. LEVYING ASSESSMENT.
        1598. COLLECTION OF ASSESSMENT.
  § 1596. DEFINITIONS. AS USED OR REFERRED TO IN THIS ARTICLE, UNLESS  A
DIFFERENT MEANING CLEARLY APPEARS FROM THE CONTEXT:
  1.  "BASELINE  REAL  PROPERTY  TAX" SHALL MEAN THE TOTAL REAL PROPERTY
TAXES LEVIED ON A PARCEL LAST LEVIED PRIOR TO THE EFFECTIVE DATE OF  THE
RESOLUTION OF THE METROPOLITAN TRANSPORTATION AUTHORITY ESTABLISHING THE
TRANSPORTATION  IMPROVEMENT  SUBDISTRICT IN WHICH SUCH PARCEL IS LOCATED
AND SHALL ALSO INCLUDE ANY PAYMENTS IN LIEU OF TAXES MADE  WITH  RESPECT
TO ANY SUCH PARCEL.
  2. "INCREMENTAL REAL PROPERTY TAX" SHALL MEAN THAT PORTION OF THE REAL
PROPERTY  TAXES  LEVIED  ON A PARCEL EACH YEAR IN EXCESS OF THE BASELINE
REAL PROPERTY TAX AND SHALL INCLUDE ANY PAYMENTS IN LIEU OF  TAXES  MADE
WITH RESPECT TO ANY PARCEL.
  3.  "REAL  PROPERTY" SHALL MEAN "REAL PROPERTY" AS DEFINED IN SUBDIVI-
SION TWELVE OF SECTION ONE HUNDRED TWO OF THIS CHAPTER.
  4. "PARCEL" SHALL MEAN A "PARCEL" AS DEFINED IN SUBDIVISION ELEVEN  OF
SECTION ONE HUNDRED TWO OF THIS CHAPTER.
  5. "TAXING JURISDICTION" SHALL MEAN A MUNICIPAL CORPORATION OR SPECIAL
DISTRICT WHICH IMPOSES A CHARGE UPON REAL PROPERTY LOCATED WITHIN A CITY
OF A POPULATION OF ONE MILLION OR MORE.
  6.  "TRANSPORTATION  IMPROVEMENT SUBDISTRICT" SHALL MEAN A TRANSPORTA-
TION IMPROVEMENT SUBDISTRICT DULY APPROVED BY THE BOARD OF THE METROPOL-
ITAN TRANSPORTATION AUTHORITY PURSUANT TO SECTION TWELVE HUNDRED  SIXTY-

S. 7508                            37                            A. 9508

NINE-H  OF  THE  PUBLIC  AUTHORITIES  LAW  AND ADDED TO THE LIST OF SUCH
TRANSPORTATION IMPROVEMENT SUBDISTRICTS MAINTAINED BY  THE  METROPOLITAN
TRANSPORTATION AUTHORITY.
  §  1597.  LEVYING  ASSESSMENT. 1. FOR THE SOLE PURPOSE OF PROVIDING AN
ADDITIONAL STABLE AND RELIABLE DEDICATED FUNDING SOURCE FOR  THE  METRO-
POLITAN  TRANSPORTATION  AUTHORITY,  THE NEW YORK CITY TRANSIT AUTHORITY
AND THEIR SUBSIDIARIES TO PRESERVE, OPERATE AND IMPROVE ESSENTIAL TRANS-
IT AND TRANSPORTATION SERVICES IN THE METROPOLITAN COMMUTER  TRANSPORTA-
TION DISTRICT, AN ASSESSMENT EQUAL TO NOT MORE THAN SEVENTY-FIVE PERCENT
OF  THE  INCREMENTAL REAL PROPERTY TAX LEVIED ON ALL PARCELS WITHIN EACH
OF  THE  FOLLOWING  TRANSPORTATION  IMPROVEMENT  SUBDISTRICTS  SHALL  BE
LEVIED,  COMMENCING,  FOR  EACH  PARCEL  IN A TRANSPORTATION IMPROVEMENT
SUBDISTRICT, WITH THE FIRST LEVY OF REAL PROPERTY TAXES ON  SUCH  PARCEL
OCCURRING ON OR AFTER THE DATE OF CALCULATION OF THE BASELINE REAL PROP-
ERTY  TAX  FOR SUCH PARCEL.   FOR THE TRANSPORTATION IMPROVEMENT SUBDIS-
TRICTS ESTABLISHED PURSUANT TO SUBDIVISION TWO OF SECTION TWELVE HUNDRED
SIXTY-NINE-H OF  THE  PUBLIC  AUTHORITIES  LAW,  SUCH  ASSESSMENT  SHALL
COMMENCE FOR EACH PARCEL IN SUCH SUBDISTRICT WITH THE FIRST LEVY OF REAL
PROPERTY TAXES ON SUCH PARCEL ON OR AFTER THE DATE THAT THE METROPOLITAN
TRANSPORTATION  AUTHORITY  ADOPTS A RESOLUTION ESTABLISHING SUCH SUBDIS-
TRICT. THE BASELINE REAL PROPERTY TAX THAT SHALL BE  USED  TO  DETERMINE
THE  AMOUNT  OF SUCH ASSESSMENT SHALL BE THE FIRST LEVY OF REAL PROPERTY
TAXES ON ANY PARCEL IN SUCH SUBDISTRICT FOLLOWING THE  APPROVAL  OF  THE
PLANNING PROCESS FOR SUCH PROJECT BY THE CAPITAL PROGRAM REVIEW BOARD.
  2. NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE METROPOLITAN TRANSPOR-
TATION  AUTHORITY  SHALL HAVE NO LIABILITY TO ANY TAXING JURISDICTION OR
TO ANY REAL PROPERTY TAXPAYER FOR ANY TAX CERTIORARI PROCEEDING  OR  ANY
OTHER  JUDICIAL  OR  ADMINISTRATIVE PROCEEDING COMMENCED WITH RESPECT TO
ANY REAL PROPERTY TAX ASSESSMENT.
  § 1598. COLLECTION OF ASSESSMENT. 1.  EACH  TAXING  JURISDICTION  WILL
TIMELY COLLECT AND PAY OVER THE ASSESSMENT TO THE METROPOLITAN TRANSPOR-
TATION AUTHORITY IN A FORM AND MANNER PRESCRIBED BY SUCH AUTHORITY.
  2.  IN  THE EVENT THAT ANY TAXING JURISDICTION WITH RESPONSIBILITY FOR
COLLECTING THE TRANSPORTATION IMPROVEMENT  SUBDISTRICT  ASSESSMENT  DOES
NOT  PAY  SUCH  ASSESSMENTS  WITHIN  THIRTY  DAYS OF THE RECEIPT OF SUCH
ASSESSMENT, THE METROPOLITAN TRANSPORTATION AUTHORITY SHALL  NOTIFY  THE
STATE COMPTROLLER IN WRITING AND SUCH COMPTROLLER SHALL, UPON REVIEW AND
DETERMINATION  THAT  AN  ASSESSMENT  WAS NOT PAID, DEDUCT ANY AMOUNT NOT
PAID FROM ANY AMOUNT OF STATE AID OR ANY OTHER STATE PAYMENT DUE TO SUCH
TAXING JURISDICTION. THE STATE COMPTROLLER SHALL REMIT  THE  AMOUNTS  SO
DEDUCTED AND RECOVERED TO THE METROPOLITAN TRANSPORTATION AUTHORITY.
  § 5. This act shall take effect immediately.

                                 PART M

  Section  1.  Legislative intent. Historically, under existing law, and
pursuant to its master lease with the New York  city  transit  authority
(NYCT), the city of New York is required to pay for the capital needs of
the  NYCT.  This  obligation  has  never ceased from the initial chapter
establishing the NYCT and  transferring  the  operation  of  the  city's
subway system to the NYCT in 1953. This legislation clarifies this long-
standing  obligation and establishes a process for state assistance when
a disaster emergency is declared.
  § 2. Subdivision 1 of section 1269-b of the public authorities law, as
amended by chapter 637 of the laws  of  1996,  is  amended  to  read  as
follows:

S. 7508                            38                            A. 9508

  1.    (a) On or before October first, nineteen hundred eighty-one, and
on or before October first of every fifth year thereafter,  through  and
including  October  first,  nineteen  hundred  ninety-one, the authority
shall  submit  to  the  metropolitan  transportation  authority  capital
program  review board two capital program plans for the five year period
commencing January first of the following year;
  (b) not later than ten days after the effective date of this paragraph
the authority shall submit to the metropolitan transportation  authority
capital program review board two capital program plans for the five-year
period commencing January first, nineteen hundred ninety-five; and
  (c) on or before October first, nineteen hundred ninety-nine and every
fifth  year  thereafter,  the authority shall submit to the metropolitan
transportation  authority  capital  program  review  board  two  capital
program  plans  for the five-year period commencing January first of the
following year.
  For each of the periods described above, one such plan  shall  contain
the  capital program for the transit facilities operated by the New York
city transit authority and its subsidiaries and for  the  Staten  Island
rapid transit operating authority; the other such plan shall contain the
capital  program  for  the railroad facilities, not including the Staten
Island rapid transit operating authority, under the jurisdiction of  the
authority.
  Each  plan  shall  set  system-wide  goals  and objectives for capital
spending, establish standards for service and operations,  and  describe
each  capital  element  proposed  to  be  initiated in each of the years
covered by the plan and explain how each proposed element  supports  the
achievement  of the service and operational standards established in the
plan. Each plan shall also set forth an estimate of the amount of  capi-
tal funding required each year and the expected sources of such funding,
EXCEPT  THAT  FOR  SUCH  CAPITAL  FUNDING REQUIRED EACH YEAR FOR TRANSIT
FACILITIES OPERATED BY THE NEW  YORK  CITY  TRANSIT  AUTHORITY  AND  ITS
SUBSIDIARIES,  THE  CITY  OF  NEW YORK SHALL PROVIDE IN FULL ALL FUNDING
REQUIRED TO MEET THE CAPITAL NEEDS OF THE NEW YORK CITY TRANSIT AUTHORI-
TY IN SUCH PLAN.  Each plan subsequent to the first such plan  and  each
proposed  amendment  or  modification  thereof  shall  also describe the
current status of  each  capital  element  included  in  the  previously
approved plan, if any. Each plan shall be accompanied or supplemented by
such  supporting  materials as the metropolitan transportation authority
capital program review board shall require.
  A capital element shall mean either a category of expenditure itemized
in a plan, as hereinafter provided, for which a specified maximum dollar
amount is proposed to be expended, or a particularly  described  capital
project  within  one or more categories for which no maximum expenditure
is proposed, but for which an estimate of expected cost is  provided.  A
capital  element  shall be deemed to have been initiated for purposes of
this section if in connection with  such  element  the  authority  shall
certify  that  (i)  purchase or construction contracts have been entered
into, obligating in the aggregate an amount exceeding ten percent of the
maximum or estimated cost of the element as set forth in  a  plan,  (ii)
financing  specific  to  the  project has been undertaken, or (iii) in a
case where such element is limited to design or engineering, a  contract
therefor has been entered into.
  § 3. Section 1269-b of the public authorities law is amended by adding
a new subdivision 10 to read as follows:
  10.  IN  THE CASE OF A DISASTER EMERGENCY DECLARED PURSUANT TO SECTION
TWENTY-EIGHT OF THE EXECUTIVE LAW, WHERE SUCH DISASTER EMERGENCY RELATES

S. 7508                            39                            A. 9508

TO THE CONTINUING FAILURES AND THE CONDITION OF THE TRACK,  SIGNALS  AND
OTHER  INFRASTRUCTURE OF THE TRANSIT FACILITIES OPERATED BY THE NEW YORK
CITY TRANSIT AUTHORITY, THE STATE  MAY  APPROPRIATE  REVENUES  IT  DEEMS
NECESSARY  AND  APPROPRIATE  TO  FUND  THE  CAPITAL COSTS OF REPAIRS AND
CONSTRUCTION DEEMED ESSENTIAL TO ENSURE THE CONTINUED SAFE AND EFFECTIVE
OPERATION OF SUCH TRANSIT FACILITIES. UPON ANY SUCH  APPROPRIATION,  THE
CITY  OF NEW YORK SHALL, WITHIN SIXTY DAYS, APPROPRIATE AN IDENTICAL SUM
TO PROVIDE FOR CAPITAL REPAIRS AND CONSTRUCTION.
  § 4. This act shall take effect immediately.

                                 PART N

  Section 1. Paragraph (a) of subdivision  5  of  section  2879  of  the
public  authorities  law, as amended by chapter 531 of the laws of 1993,
is amended to read as follows:
  (a) Each corporation shall notify the commissioner of economic  devel-
opment  of the award of a procurement contract for the purchase of goods
or services from a foreign business enterprise in an amount equal to  or
greater  than  one  million  dollars  simultaneously  with notifying the
successful bidder therefor. [No corporation shall thereafter enter  into
a procurement contract for said goods or services until at least fifteen
days  has  elapsed, except for procurement contracts awarded on an emer-
gency or critical basis, or where the commissioner of economic  develop-
ment  waives  the  provisions of this sentence.] The notification to the
commissioner of economic development shall include the name, address and
telephone and facsimile number of the  foreign  business  enterprise,  a
brief  description  of  the goods or services to be obtained pursuant to
the proposed procurement contract, the amount of the  proposed  procure-
ment  contract,  the  term of the proposed procurement contract, and the
name of the individual at the foreign business enterprise or  acting  on
behalf  of  the  same  who  is  principally responsible for the proposed
procurement contract. Such notification shall be used by the commission-
er of economic development solely to provide notification  to  New  York
state  business  enterprises  of opportunities to participate as subcon-
tractors and suppliers on such procurement  contracts,  to  promote  and
encourage  the location and development of new business in the state, to
assist New York state business enterprises in obtaining  offset  credits
from  foreign  countries, and to otherwise investigate, study and under-
take means of promoting and encouraging the prosperous  development  and
protection  of  the  legitimate  interest  and welfare of New York state
business enterprises, industry and commerce.
  § 2. Subdivision 7 of section 1209 of the public authorities  law,  as
amended  by  section  1 of part OO of chapter 54 of the laws of 2016, is
amended to read as follows:
  7. (a) Except as otherwise provided  in  this  section,  all  purchase
contracts  for  supplies,  materials or equipment involving an estimated
expenditure in excess of one [hundred thousand] MILLION dollars and  all
contracts  for  public work involving an estimated expenditure in excess
of one [hundred thousand]  MILLION  dollars  shall  be  awarded  by  the
authority  to  the lowest responsible bidder after obtaining sealed bids
in the manner hereinafter set forth. The aforesaid shall  not  apply  to
contracts for personal, architectural, engineering or other professional
services.  The  authority may reject all bids and obtain new bids in the
manner provided by this section when it is deemed in the public interest
to do so or, in cases where two or more responsible bidders submit iden-
tical bids which are the lowest bids, award the contract to any of  such

S. 7508                            40                            A. 9508

bidders or obtain new bids from such bidders. Nothing herein shall obli-
gate the authority to seek new bids after the rejection of bids or after
cancellation  of  an  invitation  to  bid. Nothing in this section shall
prohibit the evaluation of bids on the basis of costs or savings includ-
ing  life  cycle  costs  of  the  item  to  be purchased, discounts, and
inspection services so long as the invitation  to  bid  reasonably  sets
forth  the criteria to be used in evaluating such costs or savings. Life
cycle costs may include but shall not be limited  to  costs  or  savings
associated  with  installation,  energy  use, maintenance, operation and
salvage or disposal.
  (b) Section twenty-eight hundred seventy-nine of  this  chapter  shall
apply  to  the authority's acquisition of goods or services of any kind,
in the actual or estimated amount of fifteen thousand dollars  or  more,
provided  that  (i)  a  contract for services in the actual or estimated
amount of less than one [hundred thousand]  MILLION  dollars  shall  not
require  approval by the board of the authority regardless of the length
of the period over which the services are rendered, and provided further
that a contract for services in the actual or estimated  amount  of  one
[hundred thousand] MILLION dollars or more shall require approval by the
board of the authority regardless of the length of the period over which
the  services  are  rendered  unless  such  a contract is awarded to the
lowest responsible bidder after obtaining sealed bids and (ii) the board
of the authority may by resolution adopt guidelines that  authorize  the
award  of  contracts  to  small  business  concerns, to service disabled
veteran owned businesses certified pursuant to  article  seventeen-B  of
the  executive  law,  or  minority  or  women-owned business enterprises
certified pursuant  to  article  fifteen-A  of  the  executive  law,  or
purchases of goods or technology that are recycled or remanufactured, in
an  amount  not to exceed four hundred thousand dollars without a formal
competitive process and without further board approval. The board of the
authority shall adopt guidelines which shall be made publicly  available
for the awarding of such contract without a formal competitive process.
  §  3.  Subparagraph (i) of paragraph (f) and subparagraph (i) of para-
graph (g) of subdivision 9 of section 1209  of  the  public  authorities
law,  as  amended  by  section 3 of part OO of chapter 54 of the laws of
2016, are amended to read as follows:
  (i) Except for a contract  with  a  value  of  one  [hundred]  million
dollars or less that is awarded pursuant to this paragraph to the propo-
ser  whose  proposal  is  the  lowest  cost,  the  authority may award a
contract pursuant to this paragraph only after a resolution approved  by
a  two-thirds  vote of its members then in office at a public meeting of
the authority with such resolution (A) disclosing  the  other  proposers
and  the  substance  of their proposals, (B) summarizing the negotiation
process including the opportunities, if any, available to  proposers  to
present  and  modify their proposals, and (C) setting forth the criteria
upon which the selection was made provided however that for purposes  of
this  subparagraph  the  board  may,  at  its discretion, require such a
resolution be approved for contracts  with  a  value  of  one  [hundred]
million dollars or less.
  (i)  Except  for  a  contract  with  a  value of one [hundred] million
dollars or less that is awarded pursuant to this paragraph to the propo-
ser whose proposal is  the  lowest  cost,  the  authority  may  award  a
contract  pursuant to this paragraph only after a resolution approved by
a vote of not less than two-thirds of its members then in  office  at  a
public  meeting of the authority with such resolution (A) disclosing the
other proposers and the substance of their  proposals,  (B)  summarizing

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the  negotiation  process including the opportunities, if any, available
to proposers to present and modify  their  proposals,  and  (C)  setting
forth  the  criteria  upon which the selection was made provided however
that for purposes of this subparagraph the board may, at its discretion,
require  such a resolution be approved for contracts with a value of one
[hundred] million dollars or less.
  § 4. Paragraphs (a) and (b) of subdivision 2 of section 1265-a of  the
public authorities law, as amended by section 8 of part OO of chapter 54
of the laws of 2016, are amended to read as follows:
  (a)  Except  as  otherwise  provided  in  this  section,  all purchase
contracts for supplies, materials or equipment  involving  an  estimated
expenditure  in excess of one [hundred thousand] MILLION dollars and all
contracts for public work involving an estimated expenditure  in  excess
of  one  [hundred  thousand]  MILLION  dollars  shall  be awarded by the
authority to the lowest responsible bidder after obtaining  sealed  bids
in  the manner hereinafter set forth. For purposes hereof, contracts for
public work shall exclude contracts for personal, engineering and archi-
tectural, or professional services. The authority may  reject  all  bids
and  obtain  new  bids in the manner provided by this section when it is
deemed in the public interest to do so or, in cases where  two  or  more
responsible  bidders  submit  identical  bids which are the lowest bids,
award the contract to any of such bidders or obtain new bids  from  such
bidders.  Nothing  herein  shall obligate the authority to seek new bids
after the rejection of bids or after cancellation of  an  invitation  to
bid.  Nothing  in  this section shall prohibit the evaluation of bids on
the basis of costs or savings including life cycle costs of the item  to
be  purchased, discounts, and inspection services so long as the invita-
tion to bid reasonably sets forth the criteria to be used in  evaluating
such  costs  or  savings.  Life cycle costs may include but shall not be
limited to costs or savings associated with  installation,  energy  use,
maintenance, operation and salvage or disposal.
  (b)  Section  twenty-eight  hundred seventy-nine of this chapter shall
apply to the authority's acquisition of goods or services of  any  kind,
in  the  actual or estimated amount of fifteen thousand dollars or more,
provided (i) that a contract for services in  the  actual  or  estimated
amount  of  less  than  one [hundred thousand] MILLION dollars shall not
require approval by the board of the authority regardless of the  length
of the period over which the services are rendered, and provided further
that  a  contract  for services in the actual or estimated amount of one
[hundred thousand] MILLION dollars or more shall require approval by the
board of the authority regardless of the length of the period over which
the services are rendered unless such  a  contract  is  awarded  to  the
lowest  responsible  bidder  after  obtaining  sealed bids, and (ii) the
board of the authority may by resolution adopt guidelines that authorize
the award of contracts to small business concerns, to  service  disabled
veteran  owned  businesses  certified pursuant to article seventeen-B of
the executive law,  or  minority  or  women-owned  business  enterprises
certified  pursuant  to  article  fifteen-A  of  the  executive  law, or
purchases of goods or technology that are recycled or remanufactured, in
an amount not to exceed four hundred thousand dollars without  a  formal
competitive process and without further board approval. The board of the
authority  shall adopt guidelines which shall be made publicly available
for the awarding of such contract without a formal competitive process.
  § 5. Subparagraph (i) of paragraph (f) and subparagraph (i)  of  para-
graph  (g)  of subdivision 4 of section 1265-a of the public authorities

S. 7508                            42                            A. 9508

law, as amended by section 9 of part OO of chapter 54  of  the  laws  of
2016, are amended to read as follows:
  (i)  Except  for  a  contract  with  a  value of one [hundred] million
dollars or less that is awarded pursuant to this paragraph to the propo-
ser whose proposal is  the  lowest  cost,  the  authority  may  award  a
contract  pursuant to this paragraph only after a resolution approved by
a two-thirds vote of its members then in office at a public  meeting  of
the  authority  with  such resolution (A) disclosing the other proposers
and the substance of their proposals, (B)  summarizing  the  negotiation
process  including  the opportunities, if any, available to proposers to
present and modify their proposals, and (C) setting forth  the  criteria
upon  which the selection was made provided however that for purposes of
this subparagraph the board may,  at  its  discretion,  require  such  a
resolution  be  approved  for  contracts  with  a value of one [hundred]
million dollars or less.
  (i) Except for a contract  with  a  value  of  one  [hundred]  million
dollars or less that is awarded pursuant to this paragraph to the propo-
ser  whose  proposal  is  the  lowest  cost,  the  authority may award a
contract pursuant to this paragraph only after a resolution approved  by
a  vote of not less than a two-thirds vote of its members then in office
at a public meeting of the authority with such resolution (A) disclosing
the other proposers and the substance of their proposals, (B)  summariz-
ing  the negotiation process including the opportunities, if any, avail-
able to proposers to present and modify their proposals, and (C) setting
forth the criteria upon which the selection was  made  provided  however
that for purposes of this subparagraph the board may, at its discretion,
require  such a resolution be approved for contracts with a value of one
[hundred] million dollars or less.
  § 6. Subdivision 22 of section 553 of the public authorities  law,  as
added  by  section  12  of part OO of chapter 54 of the laws of 2016, is
amended to read as follows:
  22. Section twenty-eight hundred seventy-nine of  this  chapter  shall
apply  to  the authority's acquisition of goods or services of any kind,
in the actual or estimated amount of fifteen thousand dollars  or  more,
provided  that  (i)  a  contract for services in the actual or estimated
amount of less than one [hundred thousand]  MILLION  dollars  shall  not
require  approval by the board of the authority regardless of the length
of the period over which the services are rendered, and provided further
that a contract for services in the actual or estimated  amount  of  one
[hundred thousand] MILLION dollars or more shall require approval by the
board of the authority regardless of the length of the period over which
the  services  are  rendered  unless  such  a contract is awarded to the
lowest responsible bidder after obtaining sealed bids and (ii) the board
of the authority may by resolution adopt guidelines that  authorize  the
award  of  contracts  to  small  business  concerns, to service disabled
veteran owned businesses certified  pursuant  to  article  [seventeen-b]
SEVENTEEN-B  of  the  executive law, or minority or women-owned business
enterprises certified pursuant to article [fifteen-a] FIFTEEN-A  of  the
executive  law, or purchases of goods or technology that are recycled or
remanufactured, in an amount not to exceed four hundred thousand dollars
without a formal competitive process and without further board approval.
The board of the authority shall adopt guidelines which  shall  be  made
publicly  available  for  the awarding of such contract without a formal
competitive process.
  § 7. Section 1266 of the public authorities law is amended by adding a
new subdivision 19 to read as follows:

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  19. THE BOARD OF THE AUTHORITY SHALL BE AUTHORIZED TO TERMINATE, MODI-
FY OR AMEND ANY SERVICE OR  FUNDING  AGREEMENT  APPROVED  PRIOR  TO  THE
EFFECTIVE DATE OF THIS SUBDIVISION THAT DOES NOT INCLUDE A DEFINED DURA-
TION  TERM, OR CONTAINS AN INITIAL TERM THAT EXPLICITLY OR IN EFFECT HAS
A DURATION LONGER THAN TWENTY YEARS.
  §  8.  This  act  shall  take  effect April 1, 2018; provided that the
amendments to subdivisions 7 and 9 of section 1209, subdivisions 2 and 4
of section 1265-a, and subdivision 22  of  section  553  of  the  public
authorities  law made by sections two, three, four, five and six of this
act shall be subject to the expiration and reversion or repeal  of  such
provisions  pursuant  to section 15 of part OO of chapter 54 of the laws
of 2016, as amended, and shall expire and be deemed repealed therewith.

                                 PART O

  Section 1. Subdivision 3 of section 16-m of section 1 of  chapter  174
of  the  laws  of 1968 constituting the New York state urban development
corporation act, as amended by section 1 of part M of chapter 58 of  the
laws of 2017, is amended to read as follows:
  3.  The  provisions  of this section shall expire, notwithstanding any
inconsistent provision of subdivision 4 of section 469 of chapter 309 of
the laws of 1996 or of any other law, on July 1, [2018] 2019.
  § 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after July 1, 2018.

                                 PART P

  Section  1. Section 2 of chapter 393 of the laws of 1994, amending the
New York state urban development corporation act, relating to the powers
of the New York state urban development corporation to  make  loans,  as
amended  by  section  1  of part N of chapter 58 of the laws of 2017, is
amended to read as follows:
  § 2. This act shall take effect immediately  provided,  however,  that
section  one  of  this act shall expire on July 1, [2018] 2019, at which
time the provisions of subdivision 26 of section 5 of the New York state
urban development corporation act shall be  deemed  repealed;  provided,
however,  that neither the expiration nor the repeal of such subdivision
as provided for herein shall be deemed to affect or impair in any manner
any loan made pursuant to the authority of  such  subdivision  prior  to
such expiration and repeal.
  §  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2018.

                                 PART Q

  Section 1. Subdivisions 2, 7, 8, 13, 14, 15, 16, 19, 20, 21 and 22  of
section  310  of the executive law, subdivisions 2, 8 and 14 as added by
chapter 261 of the laws of 1988, subdivisions 7 and  15  as  amended  by
chapter 22 of the laws of 2014, subdivision 13 as amended by chapter 506
of  the laws of 2009, subdivision 16, as amended by section 3 of part BB
of chapter 59 of the laws of 2006, subdivisions 19, 20,  21  and  22  as
added  by chapter 175 of the laws of 2010 are amended and a new subdivi-
sion 24 is added to read as follows:
  2. "Contracting agency" shall mean  a  state  agency  OR  STATE-FUNDED
ENTITY  which  is a party or a proposed party to a state contract or, in
the case of a state contract described in paragraph (c)  of  subdivision

S. 7508                            44                            A. 9508

thirteen  of this section, shall mean the New York state housing finance
agency, housing trust fund  corporation  or  affordable  housing  corpo-
ration, whichever has made or proposes to make the grant or loan for the
state assisted housing project.
  7.  "Minority-owned  business enterprise" shall mean a business enter-
prise, including a sole proprietorship, partnership,  limited  liability
company or corporation that is:
  (a)  at  least  fifty-one  percent owned by one or more minority group
members;
  (b) an enterprise in which such minority ownership is  real,  substan-
tial and continuing;
  (c)  an  enterprise in which such minority ownership has and exercises
the authority to control independently the day-to-day business decisions
of the enterprise;
  (d) an enterprise authorized to do business in this  state  and  inde-
pendently owned and operated;
  (e)  an enterprise owned by an individual or individuals, whose owner-
ship, control and operation are relied upon for  certification,  with  a
personal net worth that does not exceed three million five hundred thou-
sand  dollars,  OR  SUCH OTHER AMOUNT AS THE DIRECTOR SHALL SET FORTH IN
REGULATIONS, as adjusted annually on the first of January for  inflation
according to the consumer price index of the previous year; and
  (f)  an  enterprise  that  is a small business pursuant to subdivision
twenty of this section.
  8. "Minority group member" shall  mean  a  United  States  citizen  or
permanent resident alien who is and can demonstrate membership in one of
the following groups:
  (a)  Black  persons  having origins in any of the Black African racial
groups;
  (b) Hispanic persons  of  Mexican,  Puerto  Rican,  Dominican,  Cuban,
Central  or  South American of either Indian or Hispanic origin, regard-
less of race;
  (c) Native American or Alaskan native persons having origins in any of
the original peoples of North America.
  (d) Asian and Pacific Islander persons having origins in  any  of  the
Far  East  countries,  South  East  Asia, the Indian subcontinent or the
Pacific Islands.
  13. "State contract" shall mean: (a) a written agreement  or  purchase
order  instrument, providing for a total expenditure in excess of [twen-
ty-five] FIFTY thousand dollars, whereby a contracting agency is commit-
ted to expend or does  expend  OR  GRANT  funds  in  return  for  labor,
services including but not limited to legal, financial and other profes-
sional  services,  supplies,  equipment, materials or any combination of
the foregoing, to be performed for, or  rendered  or  furnished  to  the
contracting  agency;  (b)  a  written  agreement  in excess of [one] TWO
hundred thousand dollars whereby a contracting agency  is  committed  to
expend  or does expend OR GRANT funds for the acquisition, construction,
demolition, replacement, major repair or renovation of real property and
improvements thereon; [and] (c) a written agreement in excess  of  [one]
TWO hundred thousand dollars whereby the owner of a state assisted hous-
ing project is committed to expend or does expend funds for the acquisi-
tion,  construction, demolition, replacement, major repair or renovation
of real property and improvements thereon for such project;  AND  (D)  A
WRITTEN  AGREEMENT  OR  PURCHASE ORDER INSTRUMENT, PROVIDING FOR A TOTAL
EXPENDITURE IN EXCESS OF FIFTY THOUSAND DOLLARS, WHEREBY A  STATE-FUNDED
ENTITY  IS  COMMITTED  TO EXPEND OR DOES EXPEND FUNDS PAID TO THE STATE-

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FUNDED ENTITY BY THE STATE OF NEW YORK,  INCLUDING  THOSE  PAID  TO  THE
STATE-FUNDED  ENTITY  PURSUANT  TO  AN APPROPRIATION, FOR ANY PRODUCT OR
SERVICE.
  14.  "Subcontract"  shall  mean  an  agreement  [providing for a total
expenditure  in  excess  of  twenty-five  thousand   dollars   for   the
construction,  demolition,  replacement, major repair, renovation, plan-
ning or design of real property  and  improvements  thereon]  between  a
contractor  and  any individual or business enterprise, including a sole
proprietorship, partnership, corporation, or not-for-profit corporation,
in which a portion of a contractor's obligation under a  state  contract
is  undertaken or assumed, but shall not include any construction, demo-
lition, replacement, major repair, renovation,  planning  or  design  of
real  property  or  improvements  thereon  for the beneficial use of the
contractor.
  15. "Women-owned business enterprise" shall  mean  a  business  enter-
prise,  including  a sole proprietorship, partnership, limited liability
company or corporation that is:
  (a) at least fifty-one percent owned by  one  or  more  United  States
citizens or permanent resident aliens who are women;
  (b)  an  enterprise  in  which the ownership interest of such women is
real, substantial and continuing;
  (c) an enterprise in which such women ownership has and exercises  the
authority  to control independently the day-to-day business decisions of
the enterprise;
  (d) an enterprise authorized to do business in this  state  and  inde-
pendently owned and operated;
  (e)  an enterprise owned by an individual or individuals, whose owner-
ship, control and operation are relied upon for  certification,  with  a
personal net worth that does not exceed three million five hundred thou-
sand  dollars,  OR  SUCH OTHER AMOUNT AS THE DIRECTOR SHALL SET FORTH IN
REGULATIONS, as adjusted annually on the first of January for  inflation
according to the consumer price index of the previous year; and
  (f)  an  enterprise  that  is a small business pursuant to subdivision
twenty of this section.
  A firm owned by a minority group member who is also  a  woman  may  be
certified  as  a minority-owned business enterprise, a women-owned busi-
ness enterprise, or both, and may be counted towards either a  minority-
owned  business  enterprise  goal  or  a women-owned business enterprise
goal, in regard to any contract or any goal, set by an agency or author-
ity, but such participation may not be counted towards both such  goals.
Such  an  enterprise's  participation  in  a contract may not be divided
between the minority-owned business enterprise goal and the  women-owned
business enterprise goal.
  16.  "Statewide  advocate"  shall  mean  the  person  appointed by the
[commissioner] DIRECTOR to serve in the capacity  of  the  minority  and
women-owned business enterprise statewide advocate.
  19.  "Personal  net worth" shall mean the aggregate adjusted net value
of the assets of an individual remaining  after  total  liabilities  are
deducted.  Personal  net worth includes the individual's share of assets
held jointly with said individual's spouse  and  does  not  include  the
individual's  ownership  interest  in  the certified minority and women-
owned business enterprise, the individual's [equity in his or her prima-
ry residence] OWNERSHIP INTEREST IN ANY HOLDING COMPANY THAT LEASES REAL
PROPERTY, MACHINERY, EQUIPMENT, OR VEHICLES EXCLUSIVELY TO THE CERTIFIED
MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE, UP TO TWO  HUNDRED  PERCENT
OF  THE MEDIAN VALUE OF OWNER-OCCUPIED HOUSING UNITS IN THE MUNICIPALITY

S. 7508                            46                            A. 9508

IN WHICH THE INDIVIDUAL RESIDES, or up to five hundred thousand  dollars
of  the  present  cash value of any qualified retirement savings plan or
individual retirement account held by the individual less any  penalties
for early withdrawal.
  20.  "Small  business" as used in this section, unless otherwise indi-
cated, shall mean a business which has a significant  business  presence
in  the  state, is independently owned and operated, not dominant in its
field and employs, based on its industry, a certain number of persons as
determined by the director[, but not to exceed  three  hundred],  taking
into consideration factors which include, but are not limited to, feder-
al  small  business administration standards pursuant to 13 CFR part 121
and any amendments thereto. The director may issue  regulations  on  the
construction of the terms in this definition.
  21.  "The  [2010]  disparity  study"  shall  refer  to the MOST RECENT
disparity study commissioned by the  [empire  state  development  corpo-
ration]  DEPARTMENT  OF  ECONOMIC DEVELOPMENT, pursuant to section three
hundred twelve-a of this article[, and published on  April  twenty-nine,
two thousand ten].
  22.  "Diversity  practices"  shall mean the contractor's practices and
policies with respect to:
  (a) [utilizing] MENTORING certified minority and women-owned  business
enterprises  in  contracts  awarded  by  a  state agency or other public
corporation, as subcontractors and suppliers; [and]
  (b) entering  into  partnerships,  joint  ventures  or  other  similar
arrangements  with  certified  minority  and women-owned business enter-
prises as defined in this article or other applicable statute  or  regu-
lation  governing  an  entity's  utilization  of minority or women-owned
business enterprises; AND
  (C) THE REPRESENTATION OF MINORITY GROUP MEMBERS AND WOMEN AS  MEMBERS
OF THE BOARD OF DIRECTORS OR EXECUTIVE OFFICERS OF THE CONTRACTOR.
  24.  "STATE-FUNDED  ENTITY"  SHALL  MEAN ANY UNIT OF LOCAL GOVERNMENT,
INCLUDING, BUT NOT LIMITED TO, A COUNTY, CITY, TOWN, VILLAGE, OR  SCHOOL
DISTRICT  THAT  IS PAID PURSUANT TO AN APPROPRIATION IN ANY STATE FISCAL
YEAR.
  § 2. Subdivision 4 of section 311 of the executive law, as amended  by
chapter 361 of the laws of 2009, is amended to read as follows:
  4.  The  director  [may]  SHALL  provide assistance to, and facilitate
access to programs serving [certified businesses as well as  applicants]
MINORITY  AND WOMEN-OWNED BUSINESS ENTERPRISES to ensure that such busi-
nesses benefit, as needed, from technical, managerial and financial, and
general  business  assistance;  training;  marketing;  organization  and
personnel  skill  development; project management assistance; technology
assistance; bond and insurance education assistance; and other  business
development  assistance.  THE DIRECTOR SHALL MAINTAIN A TOLL-FREE NUMBER
AT THE DEPARTMENT OF ECONOMIC DEVELOPMENT TO BE USED TO ANSWER QUESTIONS
CONCERNING THE MWBE CERTIFICATION PROCESS.  In  addition,  the  director
may, either independently or in conjunction with other state agencies:
  (a)  develop  a  clearinghouse of information on programs and services
provided by entities that may assist such businesses;
  (b) review bonding and paperwork requirements imposed  by  contracting
agencies that may unnecessarily impede the ability of such businesses to
compete; and
  (c)  seek to maximize utilization by minority and women-owned business
enterprises of available federal resources including but not limited  to
federal grants, loans, loan guarantees, surety bonding guarantees, tech-

S. 7508                            47                            A. 9508

nical  assistance,  and programs and services of the federal small busi-
ness administration.
  § 3. Section 311-a of the executive law, as added by section 4 of part
BB of chapter 59 of the laws of 2006, is amended to read as follows:
  §  311-a. Minority and women-owned business enterprise statewide advo-
cate. 1.  There is hereby established within the [department of  econom-
ic]  DIVISION OF MINORITY AND WOMEN'S BUSINESS development [an office of
the minority and women-owned business enterprise] A statewide  advocate.
The  statewide advocate shall be appointed by the [commissioner with the
advice of the small business advisory board as  established  in  section
one hundred thirty-three of the economic development law and shall serve
in  the  unclassified  service of the] director. [The statewide advocate
shall be located in the Albany empire state development office.]
  2. The advocate shall act as a liaison for  minority  and  women-owned
business  enterprises  (MWBEs)  to  assist  them in obtaining technical,
managerial, financial and other business assistance for certified  busi-
nesses  and  applicants.  The  advocate  shall  RECEIVE  AND investigate
complaints brought by or on behalf of  MWBEs  concerning  [certification
delays  and  instances  of] violations of [law] THE REQUIREMENTS OF THIS
ARTICLE by CONTRACTORS AND state agencies. [The statewide advocate shall
assist certified businesses and applicants in the certification process.
Other functions of the statewide  advocate  shall  be  directed  by  the
commissioner.  The  advocate  may  request  and the director may appoint
staff and employees of the  division  of  minority  and  women  business
development to support the administration of the office of the statewide
advocate.]
  3.  The  statewide advocate [shall establish a toll-free number at the
department of economic  development  to  be  used  to  answer  questions
concerning the MWBE certification process] SHALL CONDUCT PERIODIC AUDITS
OF  STATE  AGENCIES'  COMPLIANCE  WITH THE REQUIREMENTS OF SECTION THREE
HUNDRED FIFTEEN OF THIS ARTICLE, WHICH AUDITS SHALL INCLUDE A REVIEW  OF
THE  BOOKS AND RECORDS OF STATE AGENCIES CONCERNING, AMONG OTHER THINGS,
ANNUAL AGENCY EXPENDITURES, ANNUAL PARTICIPATION OF MINORITY AND  WOMEN-
OWNED  BUSINESS  ENTERPRISES  AS PRIME CONTRACTORS AND SUBCONTRACTORS IN
STATE AGENCIES' STATE CONTRACTS, AND DOCUMENTATION  OF  STATE  AGENCIES'
GOOD  FAITH EFFORTS TO MAXIMIZE MINORITY AND WOMEN-OWNED BUSINESS ENTER-
PRISE PARTICIPATION IN SUCH STATE AGENCIES' CONTRACTING.
  [4. The statewide advocate shall report to the  director  and  commis-
sioner  by  November  fifteenth  on  an  annual  basis on all activities
related to fulfilling the obligations of the  office  of  the  statewide
advocate. The commissioner shall include the unedited text of the state-
wide advocate's report within the reports submitted by the department of
economic development to the governor and the legislature.]
  §  4.  Section  312-a of the executive law, as amended by section 1 of
part Q of chapter 58 of the laws of 2015, is amended to read as follows:
  § 312-a.  Study  of  minority  and  women-owned  business  [enterprise
programs]  ENTERPRISES.  1. The director of the division of minority and
[women-owned] WOMEN'S business development [in the department of econom-
ic development] is authorized and directed to recommission  a  statewide
disparity  study regarding the participation of minority and women-owned
business enterprises in state contracts  since  the  amendment  of  this
article  to  be delivered to the governor and legislature [no later than
August fifteenth, two thousand sixteen]. The study shall be prepared  by
an  entity  independent of the department and selected through a request
for proposal process. The purpose of such study is:

S. 7508                            48                            A. 9508

  (a) to determine whether there is a disparity between  the  number  of
qualified minority and women-owned businesses ready, willing and able to
perform  state contracts for commodities, services and construction, and
the  number  of  such  contractors  actually  engaged  to  perform  such
contracts,  and  to  determine  what  changes, if any, should be made to
state policies affecting minority and women-owned business  enterprises;
and  (b) to determine whether there is a disparity between the number of
qualified minorities and women ready, willing and able, with respect  to
labor markets, qualifications and other relevant factors, to participate
in  contractor  employment, management level bodies, including boards of
directors, and as senior executive officers within contracting  entities
and  the  number  of  such group members actually employed or affiliated
with state contractors in the aforementioned capacities, and  to  deter-
mine  what  changes,  if any, should be made to state policies affecting
minority and women group populations with regard to  state  contractors'
employment  and appointment practices relative to diverse group members.
Such study shall include, but not be limited  to,  an  analysis  of  the
history  of  minority  and  women-owned business enterprise programs and
their effectiveness as a means of securing and ensuring participation by
minorities and women, and a disparity analysis by market area and region
of the state. Such  study  shall  distinguish  between  minority  males,
minority females and non-minority females in the statistical analysis.
  2.  The director of the division of minority and [women-owned] WOMEN'S
business development is directed to transmit the disparity study to  the
governor and the legislature [not later than August fifteenth, two thou-
sand sixteen], and to post the study on the website of the department of
economic development.
  §  5.  Section  313 of the executive law, as amended by chapter 175 of
the laws of 2010, is amended to read as follows:
  § 313. Opportunities for  minority  and  women-owned  business  enter-
prises.  1.  [Goals and requirements for agencies and contractors.  Each
agency shall structure procurement procedures for contracts made direct-
ly or indirectly to minority and women-owned  business  enterprises,  in
accordance  with  the  findings of the two thousand ten disparity study,
consistent with the purposes of this article, to attempt to achieve  the
following results with regard to total annual statewide procurement:
  (a) construction industry for certified minority-owned business enter-
prises: fourteen and thirty-four hundredths percent;
  (b)  construction  industry  for certified women-owned business enter-
prises: eight and forty-one hundredths percent;
  (c) construction related professional services industry for  certified
minority-owned  business enterprises: thirteen and twenty-one hundredths
percent;
  (d) construction related professional services industry for  certified
women-owned  business  enterprises:  eleven  and  thirty-two  hundredths
percent;
  (e) non-construction related services industry for  certified  minori-
ty-owned business enterprises: nineteen and sixty hundredths percent;
  (f)  non-construction  related  services industry for certified women-
owned business enterprises: seventeen and forty-four hundredths percent;
  (g) commodities industry for certified minority-owned business  enter-
prises: sixteen and eleven hundredths percent;
  (h)  commodities  industry  for  certified women-owned business enter-
prises:  ten and ninety-three hundredths percent;

S. 7508                            49                            A. 9508

  (i) overall agency total dollar value  of  procurement  for  certified
minority-owned  business enterprises: sixteen and fifty-three hundredths
percent;
  (j)  overall  agency  total  dollar value of procurement for certified
women-owned business  enterprises:  twelve  and  thirty-nine  hundredths
percent; and
  (k)  overall  agency  total  dollar value of procurement for certified
minority, women-owned business enterprises: twenty-eight and  ninety-two
hundredths percent.
  1-a.  The  director  shall  ensure  that  each  state  agency has been
provided with a copy of the two thousand ten disparity study.
  1-b. Each agency shall develop and adopt agency-specific  goals  based
on the findings of the two thousand ten disparity study.
  2.]  The  director shall promulgate rules and regulations [pursuant to
the goals established in subdivision one of this section]  that  provide
measures  and  procedures  to  ensure that certified minority and women-
owned businesses shall be given the  opportunity  for  maximum  feasible
participation in the performance of state contracts and to assist in the
agency's  identification of those state contracts for which minority and
women-owned certified businesses may best bid to actively  and  affirma-
tively  promote  and  assist  their  participation in the performance of
state contracts [so as to facilitate the  agency's  achievement  of  the
maximum  feasible portion of the goals for state contracts to such busi-
nesses].
  [2-a.] 2. The director shall promulgate  rules  and  regulations  that
will accomplish the following:
  (a)  provide for the certification and decertification of minority and
women-owned business enterprises for all agencies through a single proc-
ess that meets applicable requirements;
  (b) require that each contract solicitation document accompanying each
solicitation set forth the expected degree of minority  and  women-owned
business enterprise participation based, in part, on:
  (i)  the  potential  subcontract  opportunities available in the prime
procurement contract; [and]
  (ii) the availability[, as contained within the study,]  of  certified
minority  and  women-owned business enterprises to respond competitively
to the potential subcontract opportunities, AS REFLECTED  IN  THE  DIVI-
SION'S  DIRECTORY  OF CERTIFIED MINORITY AND WOMEN-OWNED BUSINESS ENTER-
PRISES; AND
  (III) THE FINDINGS OF THE DISPARITY STUDY.
  (c) [require that each agency provide  a  current  list  of  certified
minority business enterprises to each prospective contractor;
  (d)]  allow  a contractor that is a certified minority-owned or women-
owned business enterprise to use the work it performs to  meet  require-
ments for use of certified minority-owned or women-owned business enter-
prises as subcontractors;
  (D)  ESTABLISH  CRITERIA  FOR  AGENCIES TO CREDIT THE PARTICIPATION OF
MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES TOWARDS THE ACHIEVEMENT OF
THE MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISE PARTICIPATION GOALS  ON
A  STATE  CONTRACT BASED ON THE COMMERCIALLY USEFUL FUNCTION PROVIDED BY
EACH MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISE ON THE CONTRACT;
  (e) provide for joint ventures, which a bidder may count toward  meet-
ing its minority and women-owned business enterprise participation;
  (f)  consistent  with  subdivision  six  of  this section, provide for
circumstances under which an agency OR  STATE-FUNDED  ENTITY  may  waive

S. 7508                            50                            A. 9508

obligations of the contractor relating to minority and women-owned busi-
ness enterprise participation;
  (g) require that an agency OR STATE-FUNDED ENTITY verify that minority
and  women-owned  business  enterprises  listed  in a successful bid are
actually participating to the extent listed in the project for which the
bid was submitted;
  (h) provide for the collection of  statistical  data  by  each  agency
concerning  actual  minority and women-owned business enterprise partic-
ipation; [and]
  (i) require each agency to consult the most  current  disparity  study
when  calculating  [agency-wide and contract specific] CONTRACT-SPECIFIC
participation goals pursuant to this article; AND
  (J) PROVIDE FOR THE PERIODIC COLLECTION OF REPORTS  FROM  STATE-FUNDED
ENTITIES IN SUCH FORM AND AT SUCH TIME AS THE DIRECTOR SHALL REQUIRE.
  3.  Solely for the purpose of providing the opportunity for meaningful
participation by  certified  businesses  in  the  performance  of  state
contracts  as  provided  in  this section, state contracts shall include
leases of real property by a state agency to a lessee where:  the  terms
of  such  leases  provide for the construction, demolition, replacement,
major repair or renovation of real property and improvements thereon  by
such lessee; and the cost of such construction, demolition, replacement,
major  repair  or  renovation  of real property and improvements thereon
shall exceed the sum of [one] TWO hundred thousand dollars.  Reports  to
the  director  pursuant to section three hundred fifteen of this article
shall include activities with  respect  to  all  such  state  contracts.
Contracting  agencies  shall  include  or  require  to  be included with
respect to state contracts for the  acquisition,  construction,  demoli-
tion,  replacement,  major  repair  or  renovation  of real property and
improvements thereon, such provisions as may be necessary to  effectuate
the  provisions  of  this  section  in every bid specification and state
contract, including,  but  not  limited  to:  (a)  provisions  requiring
contractors  to make a good faith effort to solicit active participation
by enterprises identified  in  the  directory  of  certified  businesses
[provided  to  the  contracting agency by the office]; (b) requiring the
parties to agree as a condition of entering into such  contract,  to  be
bound  by  the provisions of section three hundred sixteen of this arti-
cle; and (c) requiring the contractor  to  include  the  provisions  set
forth in paragraphs (a) and (b) of this subdivision in every subcontract
in  a manner that the provisions will be binding upon each subcontractor
as to work in connection with such contract. Provided, however, that  no
such  provisions  shall be binding upon contractors or subcontractors in
the performance of work or the provision of services that are unrelated,
separate or distinct from the state contract as expressed by its  terms,
and  nothing  in  this  section  shall  authorize  the  director  or any
contracting agency to impose any requirement on a contractor or  subcon-
tractor except with respect to a state contract.
  4. In the implementation of this section, the contracting agency shall
(a) consult the findings contained within the disparity study evidencing
relevant   industry  specific  [availability  of  certified  businesses]
DISPARITIES IN THE UTILIZATION OF MINORITY  AND  WOMEN-OWNED  BUSINESSES
RELATIVE TO THEIR AVAILABILITY;
  (b)  implement  a program that will enable the agency to evaluate each
contract to determine the  [appropriateness  of  the]  APPROPRIATE  goal
[pursuant  to  subdivision  one  of  this  section] FOR PARTICIPATION BY
MINORITY-OWNED   BUSINESS   ENTERPRISES   AND    WOMEN-OWNED    BUSINESS
ENTERPRISES;

S. 7508                            51                            A. 9508

  (c)  consider  where  practicable,  the  severability  of construction
projects and other bundled contracts; and
  (d)  consider  compliance  with  the  requirements  of any federal law
concerning opportunities for minority and  women-owned  business  enter-
prises  which  effectuates  the purpose of this section. The contracting
agency shall determine whether the imposition of the requirements of any
such law duplicate or conflict with the provisions hereof  and  if  such
duplication  or  conflict exists, the contracting agency shall waive the
applicability of this section to  the  extent  of  such  duplication  or
conflict.
  5. (a) Contracting agencies shall administer the rules and regulations
promulgated by the director in a good faith effort to [meet] ACHIEVE the
maximum  feasible  [portion of the agency's goals adopted] PARTICIPATION
OF MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES pursuant to this  arti-
cle  and  the  regulations  of the director. Such rules and regulations:
shall require a contractor to submit a utilization plan after  bids  are
opened,  when  bids  are  required,  but  prior  to the award of a state
contract; shall require the contracting agency to review the utilization
plan submitted by the contractor [and to post the utilization  plan  and
any  waivers  of  compliance  issued pursuant to subdivision six of this
section on the website of the contracting agency]  within  a  reasonable
period  of  time  as  established  by  the  director;  shall require the
contracting agency to notify the contractor in writing within  a  period
of  time  specified  by the director as to any deficiencies contained in
the contractor's utilization plan; shall require remedy thereof within a
period of time specified by the director; shall require  the  contractor
to  submit  periodic  compliance  reports  relating to the operation and
implementation of any utilization plan; shall not  allow  any  automatic
waivers  but  shall  allow  a contractor to apply for a partial or total
waiver of the minority and women-owned business enterprise participation
requirements pursuant to subdivisions six and  seven  of  this  section;
shall  allow a contractor to file a complaint with the director pursuant
to subdivision eight of this section in the event a  contracting  agency
has  failed or refused to issue a waiver of the minority and women-owned
business  enterprise  participation  requirements  or  has  denied  such
request  for  a  waiver;  and shall allow a contracting agency to file a
complaint with the director pursuant to subdivision nine of this section
in the event a contractor is failing or has failed to  comply  with  the
minority  and women-owned business enterprise participation requirements
set forth in the state contract where no waiver has been granted.
  (b) The rules and regulations promulgated pursuant to this subdivision
regarding a utilization plan shall provide that where  enterprises  have
been  identified  within a utilization plan, a contractor shall attempt,
in good faith, to utilize such enterprise at least to the  extent  indi-
cated. A contracting agency may require a contractor to indicate, within
a  utilization  plan,  what measures and procedures he or she intends to
take to comply with the provisions of this article, but may not require,
as a condition of award of,  or  compliance  with,  a  contract  that  a
contractor  utilize  a  particular  enterprise  in  performance  of  the
contract.
  (c) Without limiting other grounds for the disqualification of bids or
proposals on the basis of non-responsibility, a contracting  agency  may
disqualify  the bid or proposal of a contractor as being non-responsible
for failure to remedy notified deficiencies contained  in  the  contrac-
tor's  utilization plan within a period of time specified in regulations
promulgated by the director after receiving notification of  such  defi-

S. 7508                            52                            A. 9508

ciencies  from the contracting agency. Where failure to remedy any noti-
fied deficiency in the utilization plan is a  ground  for  disqualifica-
tion,  that  issue  and  all other grounds for disqualification shall be
stated in writing by the contracting agency. Where the contracting agen-
cy states that a failure to remedy any notified deficiency in the utili-
zation  plan  is  a  ground for disqualification the contractor shall be
entitled to an  administrative  hearing,  on  a  record,  involving  all
grounds  stated  by  the  contracting  agency.  Such  hearing  shall  be
conducted by the appropriate authority  of  the  contracting  agency  to
review  the  determination  of  disqualification. A final administrative
determination made following such  hearing  shall  be  reviewable  in  a
proceeding  commenced  under article seventy-eight of the civil practice
law and rules, provided that such proceeding is commenced within  thirty
days  of  the  notice  given  by certified mail return receipt requested
rendering such final administrative determination. Such proceeding shall
be commenced in the supreme court, appellate division, third  department
and  such  proceeding  shall  be  preferred  over all other civil causes
except election causes, and shall be heard and determined in  preference
to  all  other  civil business pending therein, except election matters,
irrespective of position on the calendar. Appeals taken to the court  of
appeals  of  the  state of New York shall be subject to the same prefer-
ence.
  6. Where it appears that a  contractor  cannot,  after  a  good  faith
effort,  comply  with  the  minority and women-owned business enterprise
participation requirements set forth in a particular state  contract,  a
contractor  may  file  a written application with the contracting agency
requesting a partial or total waiver of such requirements setting  forth
the  reasons  for  such contractor's inability to meet any or all of the
participation requirements together with an explanation of  the  efforts
undertaken  by the contractor to obtain the required minority and women-
owned business enterprise participation. In implementing the  provisions
of  this  section,  the contracting agency shall consider the number and
types of minority and women-owned business enterprises [located]  AVAIL-
ABLE  TO  PROVIDE  GOODS  OR SERVICES REQUIRED UNDER THE CONTRACT in the
region in which the state contract is to be performed, the total  dollar
value  of  the state contract, the scope of work to be performed and the
project size and term. If, based on such considerations, the contracting
agency determines there is not a reasonable availability of  contractors
on  the  list of certified business to furnish services for the project,
it shall issue a waiver of compliance to the contractor. In making  such
determination,  the  contracting  agency shall first consider the avail-
ability of other business enterprises located in the  region  and  shall
thereafter  consider  the  financial ability of minority and women-owned
businesses located outside the region in which the  contract  is  to  be
performed to perform the state contract.
  7.  For  purposes  of  determining a contractor's good faith effort to
comply with the requirements of this section or  to  be  entitled  to  a
waiver therefrom the contracting agency shall consider:
  (a)  whether  the  contractor  has  [advertised in general circulation
media, trade association publications, and minority-focus and  women-fo-
cus  media  and, in such event, (i) whether or not certified minority or
women-owned businesses which  have  been  solicited  by  the  contractor
exhibited  interest  in submitting proposals for a particular project by
attending] ATTENDED a pre-bid conference, IF ANY, SCHEDULED BY THE STATE
AGENCY AWARDING THE STATE CONTRACT WITH CERTIFIED  MINORITY  AND  WOMEN-
OWNED BUSINESS ENTERPRISES; and

S. 7508                            53                            A. 9508

  [(ii)  whether  certified  businesses which have been solicited by the
contractor have responded in a timely fashion to the contractor's solic-
itations for timely competitive bid quotations prior to the  contracting
agency's bid date; and]
  (b)  whether  [there  has been] THE CONTRACTOR PROVIDED TIMELY written
notification OF SUBCONTRACTING OPPORTUNITIES ON THE  STATE  CONTRACT  to
appropriate  certified businesses that appear in the directory of certi-
fied businesses prepared pursuant to paragraph (f) of subdivision  three
of section three hundred eleven of this article; and
  (c) whether the contractor can reasonably structure the amount of work
to  be  performed under subcontracts in order to increase the likelihood
of participation by certified businesses.
  8. In the event that a contracting agency fails or refuses to issue  a
waiver to a contractor as requested within twenty days after having made
application  therefor  pursuant to subdivision six of this section or if
the contracting agency denies such application, in whole or in part, the
contractor may file a complaint with the director  pursuant  to  section
three  hundred  sixteen  of  this  article  setting  forth the facts and
circumstances giving rise to the contractor's complaint together with  a
demand  for  relief. The contractor shall serve a copy of such complaint
upon the contracting agency by personal service or  by  certified  mail,
return  receipt  requested.  The contracting agency shall be afforded an
opportunity to respond to such complaint in writing.
  9. If, after the review of a contractor's  minority  and  women  owned
business  utilization plan or review of a periodic compliance report and
after such contractor has been afforded an opportunity to respond  to  a
notice  of  deficiency  issued  by  the contracting agency in connection
therewith, it appears that a contractor is failing or refusing to comply
with the minority and women-owned business participation requirements as
set forth in the state contract and where no waiver from  such  require-
ments  has  been  granted,  the  contracting  agency  may file a written
complaint with the director pursuant to section three hundred sixteen of
this article setting forth the facts and circumstances  giving  rise  to
the  contracting  agency's  complaint together with a demand for relief.
The contracting agency shall serve a copy of  such  complaint  upon  the
contractor  by  personal  service  or  by certified mail, return receipt
requested. The contractor shall be afforded an opportunity to respond to
such complaint in writing.
  § 6. Section 314 of the executive law, as added by chapter 261 of  the
laws  of  1988, subdivision 2-a as amended by chapter 175 of the laws of
2010, subdivision 4 as amended and subdivision 5 as added by chapter 399
of the laws of 2014, is amended to read as follows:
  § 314. Statewide certification program. 1. The director shall  promul-
gate  rules  and regulations providing for the establishment of a state-
wide certification program including rules and regulations governing the
approval, denial or revocation of any  such  certification.  SUCH  RULES
SHALL  SET  FORTH  THE  MAXIMUM  PERSONAL  NET WORTH OF A MINORITY GROUP
MEMBER OR WOMAN WHO MAY BE RELIED UPON TO CERTIFY A BUSINESS AS A MINOR-
ITY-OWNED BUSINESS ENTERPRISE OR WOMEN-OWNED  BUSINESS  ENTERPRISE,  AND
MAY ESTABLISH DIFFERENT MAXIMUM LEVELS OF PERSONAL NET WORTH FOR MINORI-
TY  GROUP  MEMBERS  AND  WOMEN ON AN INDUSTRY-BY-INDUSTRY BASIS FOR SUCH
INDUSTRIES AS THE DIRECTOR SHALL DETERMINE. Such rules  and  regulations
shall include, but not be limited to, such matters as may be required to
ensure  that  the established procedures thereunder shall at least be in
compliance with the code of fair procedure set forth in  section  seven-
ty-three of the civil rights law.

S. 7508                            54                            A. 9508

  2.  For  the purposes of this article, the office shall be responsible
for verifying businesses as being owned,  operated,  and  controlled  by
minority  group  members or women and for certifying such verified busi-
nesses. The director shall prepare a directory of  certified  businesses
for  use  by  contracting  agencies  and contractors in carrying out the
provisions of this article. The director shall periodically  update  the
directory.
  2-a.  (a) The director shall establish a procedure enabling the office
to accept New York municipal corporation certification verification  for
minority  and  women-owned  business  enterprise  applicants  in lieu of
requiring the applicant to complete the state certification process. The
director shall promulgate rules and regulations to  set  forth  criteria
for  the acceptance of municipal corporation certification. All eligible
municipal corporation certifications shall require business  enterprises
seeking certification to meet the following standards:
  (i)  have  at  least  fifty-one  percent  ownership by a minority or a
women-owned enterprise and be owned by United States citizens or  perma-
nent resident aliens;
  (ii)  be  an  enterprise  in which the minority and/or women-ownership
interest is real, substantial and continuing;
  (iii) be an enterprise in which the  minority  and/or  women-ownership
has  and exercises the authority to control independently the day-to-day
business decisions of the enterprise;
  (iv) be an enterprise authorized to do business in this state;
  (v) be subject to a physical site inspection to verify  the  fifty-one
percent ownership requirement;
  (vi)  be  owned  by  an  individual  or  individuals, whose ownership,
control and operation are relied upon for certification, with a personal
net worth that does not  exceed  three  million  five  hundred  thousand
dollars,  OR  SUCH OTHER AMOUNT AS THE DIRECTOR SHALL SET FORTH IN REGU-
LATIONS, as adjusted annually for inflation according  to  the  consumer
price index; and
  (vii)  be  an enterprise that is a small business pursuant to subdivi-
sion twenty of section three hundred ten of this article.
  (b) The director shall work with all municipal corporations that  have
a  municipal  minority  and  women-owned  business enterprise program to
develop standards to accept state certification to  meet  the  municipal
corporation  minority  and women-owned business enterprise certification
standards.
  (c) The director shall establish a procedure enabling the division  to
accept  federal  certification verification for minority and women-owned
business enterprise applicants, provided  said  standards  comport  with
those  required  by the state minority and women-owned business program,
in lieu of requiring the applicant to complete the  state  certification
process.  The  director  shall  promulgate  rules and regulations to set
forth criteria for the acceptance of federal certification.
  2-B. EACH BUSINESS  APPLYING  FOR  MINORITY  OR  WOMEN-OWNED  BUSINESS
ENTERPRISE  CERTIFICATION  PURSUANT TO THIS SECTION MUST AGREE TO ALLOW:
(I) THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS TAX  INFORMATION
WITH  THE DIVISION AND (II) THE DEPARTMENT OF LABOR TO SHARE ITS TAX AND
EMPLOYER INFORMATION WITH THE DIVISION.
  3. Following application for certification pursuant to  this  section,
the  director  shall  provide  the  applicant with written notice of the
status of the application, including notice of any outstanding deficien-
cies[, within thirty days].  Within [sixty] THIRTY days of submission of
a final completed application, the director shall provide the  applicant

S. 7508                            55                            A. 9508

with  written notice of a determination by the office approving or deny-
ing such certification and, in the event of a denial a statement setting
forth the reasons for such  denial.  Upon  a  determination  denying  or
revoking  certification, the business enterprise for which certification
has been so denied or revoked shall, upon written  request  made  within
thirty days from receipt of notice of such determination, be entitled to
a  hearing  before  an  independent  hearing officer designated for such
purpose by the director. In the event that a request for  a  hearing  is
not  made  within  such  thirty  day period, such determination shall be
deemed to be final.   The independent hearing officer  shall  conduct  a
hearing  and upon the conclusion of such hearing, issue a written recom-
mendation to the director to affirm, reverse  or  modify  such  determi-
nation  of  the director. Such written recommendation shall be issued to
the parties.  The director, within thirty days, by order,  must  accept,
reject  or  modify  such  recommendation  of the hearing officer and set
forth in writing the reasons therefor. The director shall serve  a  copy
of  such  order  and  reasons  therefor  upon the business enterprise by
personal service or by certified  mail  return  receipt  requested.  The
order  of  the  director  shall be subject to review pursuant to article
seventy-eight of the civil practice law and rules.
  4. The director may, after performing  an  availability  analysis  and
upon  a finding that industry-specific factors coupled with personal net
worth or small business eligibility requirements  pursuant  to  subdivi-
sions  nineteen and twenty of section three hundred ten of this article,
respectively, have led to the significant exclusion of businesses  owned
by  minority  group members or women in that industry, grant provisional
MWBE certification status to applicants from that  designated  industry,
provided,  however,  that all other eligibility requirements pursuant to
subdivision seven or fifteen of section three hundred ten of this  arti-
cle, as applicable, are satisfied. Any industry-based determination made
under this section by the director shall be made widely available to the
public and posted on the division's website.
  5.  With  the exception of provisional MWBE certification, as provided
for in subdivision twenty-three of section three  hundred  ten  of  this
article, all MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISE certifications
shall be valid for a period of three years.
  §  7. Subdivisions 2, 3, 4, 5, 6 and 7 of section 315 of the executive
law, subdivision 2 as added by chapter 261 of  the  laws  of  1988,  and
subdivision  3  as  amended  and  subdivisions 4, 5, 6 and 7 as added by
chapter 175 of the laws of 2010, are amended to read as follows:
  2. [Each contracting agency shall provide  to  prospective  bidders  a
current copy of the directory of certified businesses, and a copy of the
regulations required pursuant to sections three hundred twelve and three
hundred  thirteen  of  this  article  at  the time bids or proposals are
solicited.
  3.] Each contracting agency shall report to the director with  respect
to activities undertaken to promote employment of minority group members
and women and promote and increase participation by certified businesses
with  respect to state contracts and subcontracts. Such reports shall be
submitted periodically,  but  not  less  frequently  than  annually,  as
required  by  the  director,  and  shall  include such information as is
necessary for the director to determine whether the  contracting  agency
and  contractor have complied with the purposes of this article, includ-
ing, without limitation, a summary of all waivers of the requirements of
subdivisions six and seven of section three  hundred  thirteen  of  this
article  allowed  by the contracting agency during the period covered by

S. 7508                            56                            A. 9508

the report, [including a description of the basis of the waiver  request
and  the  rationale for granting any such waiver] ANY INSTANCES IN WHICH
THE STATE AGENCY HAS DEEMED A CONTRACTOR TO HAVE COMMITTED  A  VIOLATION
PURSUANT  TO  SECTION  THREE HUNDRED SIXTEEN-A OF THIS ARTICLE, AND SUCH
OTHER INFORMATION AS THE DIRECTOR SHALL REQUIRE. Each agency shall  also
include  in  such  annual  report whether or not it has been required to
prepare a remedial plan, and, if so, the plan and the  extent  to  which
the agency has complied with each element of the plan.
  [4.]  3.  The  division  of  minority and women's business development
shall issue an annual report which: (a) summarizes the report  submitted
by  each  contracting agency pursuant to subdivision [three] TWO of this
section; (b) contains such  comparative  or  other  information  as  the
director  deems appropriate, including but not limited to goals compared
to actual participation of minority and women-owned business enterprises
in state contracting, to evaluate the effectiveness  of  the  activities
undertaken  by each such contracting agency to promote increased partic-
ipation by certified minority or women-owned businesses with respect  to
state  contracts and subcontracts; (c) contains a summary of all waivers
of the requirements of subdivisions  six  and  seven  of  section  three
hundred  thirteen  of  this  article  allowed by each contracting agency
during the period covered by the report[, including a description of the
basis of the waiver request and the contracting agency's  rationale  for
granting  any  such  waiver]; AND (d) [describes any efforts to create a
database or other information storage and  retrieval  system  containing
information  relevant to contracting with minority and women-owned busi-
ness enterprises; and (e)] contains a summary of (i) all  determinations
of  violations  of  this article by a contractor or a contracting agency
made during the period covered by the annual report pursuant to  section
three hundred sixteen-a of this article and
  (ii)  the  penalties or sanctions, if any, assessed in connection with
such determinations and the rationale for such penalties  or  sanctions.
Copies  of  the annual report shall be provided to the commissioner, the
governor, the comptroller, the temporary president of  the  senate,  the
speaker of the assembly, the minority leader of the senate, the minority
leader  of  the  assembly and shall also be made widely available to the
public via, among other things, publication on a website  maintained  by
the division of minority and women's business development.
  [5.] 4. Each agency shall include in its annual report to the governor
and legislature pursuant to section one hundred sixty-four of [the exec-
utive  law]  THIS  CHAPTER its annual goals for contracts with minority-
owned  and  women-owned  business  enterprises,  the  number  of  actual
contracts issued to minority-owned and women-owned business enterprises;
and a summary of all waivers of the requirements of subdivisions six and
seven  of  section three hundred thirteen of this article allowed by the
reporting agency during the preceding year, including a  description  of
the  basis  of  the  waiver  request and the rationale for granting such
waiver. Each agency shall also include in such annual report whether  or
not  it  has  been  required to prepare a remedial plan, and, if so, the
plan and the extent to which the agency has complied with  each  element
of the plan.
  [6.]  5. Each contracting agency that substantially fails to [meet the
goals supported by the disparity study] MAKE A  GOOD  FAITH  EFFORT,  as
defined  by  regulation of the director, TO ACHIEVE THE MAXIMUM FEASIBLE
PARTICIPATION OF MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES  IN  SUCH
AGENCY'S CONTRACTING shall be required to submit to the director a reme-
dial action plan to remedy such failure.

S. 7508                            57                            A. 9508

  [7.] 6. If it is determined by the director that any agency has failed
to  act in good faith to implement the remedial action plan, pursuant to
subdivision [six] FIVE of this section within  one  year,  the  director
shall  provide written notice of such a finding, which shall be publicly
available, and direct implementation of remedial actions to:
  (a) assure that sufficient and effective solicitation efforts to women
and minority-owned business enterprises are being made by said agency;
  (b)  divide  contract  requirements,  when economically feasible, into
quantities that will expand the participation  of  women  and  minority-
owned business enterprises;
  (c) eliminate extended experience or capitalization requirements, when
programmatically  and  economically  feasible,  that will expand partic-
ipation by women and minority-owned business enterprises;
  (d) identify specific proposed contracts as particularly attractive or
appropriate for  participation  by  women  and  minority-owned  business
enterprises  with such identification to result from and be coupled with
the efforts of paragraphs (a), (b), and (c) of this subdivision; and
  (e) upon a finding by the director that an agency has failed  to  take
affirmative measures to implement the remedial plan and to follow any of
the  remedial  actions  set forth by the director, and in the absence of
any objective progress towards the agency's goals, require some  or  all
of  the  agency's procurement, for a specified period of time, be placed
under the direction and control of another agency or agencies.
  § 8. Section 316-a of the executive law, as added by  chapter  175  of
the laws of 2010, is amended to read as follows:
  §  316-a.  Prohibitions  in  contracts;  violations. Every contracting
agency shall include  a  provision  in  its  state  contracts  expressly
providing that any contractor who [willfully and intentionally] fails TO
MAKE  A  GOOD  FAITH  EFFORT to comply with the minority and women-owned
participation requirements of this article as set forth  in  such  state
contract  shall  be  liable  to the contracting agency for liquidated or
other appropriate damages and shall provide for other appropriate  reme-
dies  on  account  of  such  breach. A contracting agency that elects to
proceed against a contractor for breach of contract as provided in  this
section  shall be precluded from seeking enforcement pursuant to section
three hundred sixteen  of  this  article;  provided  however,  that  the
contracting  agency  shall  include a summary of all enforcement actions
undertaken pursuant to this  section  in  its  annual  report  submitted
pursuant to [subdivision three of] section three hundred fifteen of this
article.
  § 9. Subdivision 6 of section 163 of the state finance law, as amended
by chapter 569 of the laws of 2015, is amended to read as follows:
  6. Discretionary buying thresholds. Pursuant to guidelines established
by the state procurement council: the commissioner may purchase services
and  commodities in an amount not exceeding eighty-five thousand dollars
without a  formal  competitive  process;  state  agencies  may  purchase
services  and  commodities  in  an  amount  not exceeding fifty thousand
dollars without a formal competitive process;  and  state  agencies  may
purchase  commodities  or services from small business concerns or those
certified pursuant to articles fifteen-A and seventeen-B of  the  execu-
tive  law,  or commodities or technology that are recycled or remanufac-
tured, or commodities that are food, including milk and  milk  products,
grown,  produced or harvested in New York state in an amount not exceed-
ing [two] FOUR hundred thousand dollars  without  a  formal  competitive
process.

S. 7508                            58                            A. 9508

  §  10.  Subparagraph  (i) of paragraph (b) of subdivision 3 of section
2879 of the public authorities law, as amended by  chapter  174  of  the
laws of 2010, is amended to read as follows:
  (i)  for the selection of such contractors on a competitive basis, and
provisions relating to the circumstances under which the  board  may  by
resolution  waive  competition,  including,  notwithstanding  any  other
provision of  law  requiring  competition,  the  purchase  of  goods  or
services  from small business concerns or those certified as minority or
women-owned business enterprises, or goods or technology that are  recy-
cled  or  remanufactured,  in an amount not to exceed [two] FOUR hundred
thousand dollars without a formal competitive process;
  § 11. Paragraph a of subdivision 3  of  section  139-j  of  the  state
finance law is amended by adding two new subparagraphs 10 and 11 to read
as follows:
  (10)  COMPLAINTS BY MINORITY-OWNED BUSINESS ENTERPRISES OR WOMEN-OWNED
BUSINESS ENTERPRISES, CERTIFIED AS SUCH BY THE DIVISION OF MINORITY  AND
WOMEN'S  BUSINESS  DEVELOPMENT, TO THE MINORITY AND WOMEN-OWNED BUSINESS
ENTERPRISE STATEWIDE  ADVOCATE  CONCERNING  THE  PROCURING  GOVERNMENTAL
ENTITY'S  FAILURE  TO  COMPLY  WITH  THE  REQUIREMENTS  OF SECTION THREE
HUNDRED FIFTEEN OF THE EXECUTIVE LAW;
  (11) COMMUNICATIONS BETWEEN  THE  MINORITY  AND  WOMEN-OWNED  BUSINESS
ENTERPRISE  STATEWIDE  ADVOCATE AND THE PROCURING GOVERNMENTAL ENTITY IN
FURTHERANCE OF AN INVESTIGATION OF THE MINORITY AND WOMEN-OWNED BUSINESS
ENTERPRISE STATEWIDE ADVOCATE PURSUANT TO SECTION THREE HUNDRED TWELVE-A
OF THE EXECUTIVE LAW;
  § 12. Subdivision 6 of section 8  of  the  public  buildings  law,  as
amended  by  chapter  840  of  the  laws  of 1980, is amended to read as
follows:
  6. All contracts for amounts in excess of five  thousand  dollars  for
the work of construction, reconstruction, alteration, repair or improve-
ment  of  any  state  building, whether constructed or to be constructed
must be offered for public bidding and may  be  awarded  to  the  lowest
responsible  and reliable bidder, as will best promote the public inter-
est, by the said department or other agency with  the  approval  of  the
comptroller  for the whole or any part of the work to be performed, and,
in the discretion of the said department or other agency, such contracts
may be sublet; provided, however, that no such contract shall be awarded
to a bidder other than  the  lowest  responsible  and  reliable  bidder,
EXCEPT FOR CERTAIN CONTRACTS AWARDED TO MINORITY OR WOMEN-OWNED BUSINESS
ENTERPRISES  AS  PROVIDED  HEREIN,  without  the written approval of the
comptroller. When a proposal consists of unit prices of items  specified
to be performed, the lowest bid shall be deemed to be that which specif-
ically  states  the  lowest  gross sum for which the entire work will be
performed, EXCEPT FOR CERTAIN CONTRACTS AWARDED TO  MINORITY  OR  WOMEN-
OWNED  BUSINESS  ENTERPRISES AS PROVIDED HEREIN, including all the items
specified in the proposal thereof. The lowest bid shall be determined by
the commissioner of general services on the basis of the gross  sum  for
which  the entire work will be performed, arrived at by a correct compu-
tation of all the items specified in the proposal therefor at  the  unit
prices contained in the bid. PROVIDED, HOWEVER, THAT WHERE A RESPONSIBLE
AND RELIABLE BIDDER CERTIFIED AS A MINORITY-OWNED BUSINESS ENTERPRISE OR
WOMEN-OWNED  BUSINESS  ENTERPRISE  PURSUANT  TO ARTICLE FIFTEEN-A OF THE
EXECUTIVE LAW SUBMITS A BID OF ONE MILLION FOUR HUNDRED THOUSAND DOLLARS
OR LESS, AS ADJUSTED ANNUALLY FOR INFLATION BEGINNING JANUARY FIRST, TWO
THOUSAND NINETEEN, THE BID  OF  THE  MINORITY  OR  WOMEN-OWNED  BUSINESS

S. 7508                            59                            A. 9508

ENTERPRISE  SHALL  BE DEEMED THE LOWEST BID UNLESS IT EXCEEDS THE BID OF
ANY OTHER BIDDER BY MORE THAN TEN PERCENT.
  §  13. The penal law is amended by adding a new article 181 to read as
follows:

                               ARTICLE 181
            MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD

SECTION 181.00 DEFINITIONS.
        181.10 MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD IN  THE
                 THIRD DEGREE.
        181.20 MINORITY  OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD IN THE
                 SECOND DEGREE.
        181.30 MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD IN  THE
                 FIRST DEGREE.
§ 181.00 DEFINITIONS.
  1.  "MINORITY-OWNED  BUSINESS  ENTERPRISE" MEANS A BUSINESS ENTERPRISE
CERTIFIED AS SUCH PURSUANT TO ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW.
  2. "STATE  CONTRACT"  SHALL  HAVE  THE  SAME  MEANING  AS  IN  ARTICLE
FIFTEEN-A OF THE EXECUTIVE LAW.
  3.  "WOMEN-OWNED  BUSINESS  ENTERPRISE"  MEANS  A  BUSINESS ENTERPRISE
CERTIFIED AS SUCH PURSUANT TO ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW.
§ 181.10 MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD IN THE  THIRD
            DEGREE.
  A  PERSON  IS  GUILTY  OF  MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE
FRAUD IN THE THIRD DEGREE WHEN HE OR SHE KNOWINGLY  PROVIDES  MATERIALLY
FALSE  INFORMATION  OR  OMITS MATERIAL INFORMATION CONCERNING THE USE OR
IDENTIFICATION OF A MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FOR  THE
PURPOSE  OF BEING AWARDED, OR DEMONSTRATING COMPLIANCE WITH THE MINORITY
AND  WOMEN-OWNED  BUSINESS  PARTICIPATION  REQUIREMENTS  OF,   A   STATE
CONTRACT.
  MINORITY  OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD IN THE THIRD DEGREE
IS A CLASS A MISDEMEANOR.
§ 181.20 MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD IN THE SECOND
            DEGREE.
  A PERSON IS GUILTY OF  MINORITY  OR  WOMEN-OWNED  BUSINESS  ENTERPRISE
FRAUD  IN THE SECOND DEGREE WHEN HE OR SHE KNOWINGLY PROVIDES MATERIALLY
FALSE INFORMATION OR OMITS MATERIAL INFORMATION CONCERNING  THE  USE  OR
IDENTIFICATION  OF A MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FOR THE
PURPOSE OF BEING AWARDED, OR DEMONSTRATING COMPLIANCE WITH THE  MINORITY
AND   WOMEN-OWNED   BUSINESS  PARTICIPATION  REQUIREMENTS  OF,  A  STATE
CONTRACT, AND THE STATE CONTRACT IS VALUED IN EXCESS OF  FIFTY  THOUSAND
DOLLARS.
  MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD IN THE SECOND DEGREE
IS A CLASS E FELONY.
§ 181.30 MINORITY  OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD IN THE FIRST
            DEGREE.
  A PERSON IS GUILTY OF  MINORITY  OR  WOMEN-OWNED  BUSINESS  ENTERPRISE
FRAUD  IN  THE FIRST DEGREE WHEN HE OR SHE KNOWINGLY PROVIDES MATERIALLY
FALSE INFORMATION OR OMITS MATERIAL INFORMATION CONCERNING  THE  USE  OR
IDENTIFICATION  OF A MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FOR THE
PURPOSE OF BEING AWARDED, OR DEMONSTRATING COMPLIANCE WITH THE  MINORITY
AND   WOMEN-OWNED   BUSINESS  PARTICIPATION  REQUIREMENTS  OF,  A  STATE
CONTRACT, AND THE STATE CONTRACT IS VALUED  IN  EXCESS  OF  ONE  MILLION
DOLLARS.

S. 7508                            60                            A. 9508

  MINORITY  OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD IN THE FIRST DEGREE
IS A CLASS D FELONY.
  § 14. The opening paragraph of subdivision (h) of section 121 of chap-
ter  261  of  the laws of 1988, amending the state finance law and other
laws relating to the  New  York  state  infrastructure  trust  fund,  as
amended  by  section  1  of  part  CCC of chapter 59 of laws of 2017, is
amended to read as follows:
  The provisions of sections sixty-two through  sixty-six  of  this  act
shall expire [April fifteenth, two thousand eighteen, provided, however,
that  if  the  statewide  disparity study regarding the participation of
minority  and  women-owned  business  enterprises  in  state   contracts
required  pursuant  to subdivision one of section three hundred twelve-a
of the executive law is completed and delivered to the governor and  the
legislature  on  or  before June thirtieth, two thousand seventeen, then
the provisions of sections sixty-two through sixty-six of this act shall
expire] AND BE DEEMED REPEALED on December  thirty-first,  two  thousand
[eighteen] TWENTY-THREE, except that:
  §  15.  The  executive  law  is  amended by adding a new article 28 as
follows:

                               ARTICLE 28
                       WORKFORCE DIVERSITY PROGRAM

SECTION 821. DEFINITIONS.
        822. WORKFORCE PARTICIPATION GOALS.
        823. REPORTING.
        824. ENFORCEMENT.
        825. POWERS AND RESPONSIBILITIES OF THE DIVISION.
        826. SEVERABILITY.
  § 821. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  1. "CONTRACTOR" SHALL  MEAN  AN  INDIVIDUAL,  A  BUSINESS  ENTERPRISE,
INCLUDING  A  SOLE  PROPRIETORSHIP, A PARTNERSHIP, A CORPORATION, A NOT-
FOR-PROFIT CORPORATION, OR ANY OTHER PARTY TO A  STATE  CONTRACT,  OR  A
BIDDER  IN  CONJUNCTION WITH THE AWARD OF A STATE CONTRACT OR A PROPOSED
PARTY TO A STATE CONTRACT.
  2. "DEPARTMENT" SHALL MEAN THE DEPARTMENT OF LABOR.
  3. "DIRECTOR" SHALL MEAN THE DIRECTOR OF THE DIVISION OF MINORITY  AND
WOMEN'S BUSINESS DEVELOPMENT.
  4.  "DISPARITY  STUDY" SHALL MEAN THE MOST RECENT STUDY OF DISPARITIES
BETWEEN THE UTILIZATION OF MINORITY  GROUP  MEMBERS  AND  WOMEN  IN  THE
PERFORMANCE  OF  STATE  CONTRACTS AND THE AVAILABILITY OF MINORITY GROUP
MEMBERS AND WOMEN TO PERFORM SUCH WORK BY THE DIRECTOR PURSUANT TO ARTI-
CLE FIFTEEN-A OF THIS CHAPTER.
  5. "DIVISION" SHALL MEAN  THE  DEPARTMENT  OF  ECONOMIC  DEVELOPMENT'S
DIVISION OF MINORITY AND WOMEN'S BUSINESS DEVELOPMENT.
  6.  "LIST  OF NON-COMPLIANT CONTRACTORS" SHALL MEAN A LIST OF CONTRAC-
TORS AND SUBCONTRACTORS, MAINTAINED BY THE DIVISION AND PUBLISHED ON THE
WEBSITE OF THE DIVISION, THAT ARE INELIGIBLE TO PARTICIPATE AS  CONTRAC-
TORS  OR SUBCONTRACTORS IN THE PERFORMANCE OF STATE CONTRACTS FOR A TERM
DETERMINED BY THE DIRECTOR.
  7. "MINORITY GROUP MEMBER" SHALL  MEAN  A  UNITED  STATES  CITIZEN  OR
PERMANENT RESIDENT ALIEN WHO IS AND CAN DEMONSTRATE MEMBERSHIP IN ONE OF
THE FOLLOWING GROUPS:
  (A)  BLACK  PERSONS  HAVING ORIGINS IN ANY OF THE BLACK AFRICAN RACIAL
GROUPS;

S. 7508                            61                            A. 9508

  (B) HISPANIC PERSONS  OF  MEXICAN,  PUERTO  RICAN,  DOMINICAN,  CUBAN,
CENTRAL  OR  SOUTH AMERICAN OF EITHER INDIAN OR HISPANIC ORIGIN, REGARD-
LESS OF RACE;
  (C) NATIVE AMERICAN OR ALASKAN NATIVE PERSONS HAVING ORIGINS IN ANY OF
THE ORIGINAL PEOPLES OF NORTH AMERICA;
  (D)  ASIAN  AND  PACIFIC ISLANDER PERSONS HAVING ORIGINS IN ANY OF THE
FAR EAST COUNTRIES, SOUTH EAST ASIA,  THE  INDIAN  SUBCONTINENT  OR  THE
PACIFIC ISLANDS.
  8. "NON-COMPLIANT CONTRACTOR" SHALL MEAN A CONTRACTOR OR SUBCONTRACTOR
THAT  HAS  FAILED  TO  MAKE  A  GOOD  FAITH EFFORT TO MEET THE WORKFORCE
PARTICIPATION GOAL ESTABLISHED BY A STATE AGENCY ON  A  STATE  CONTRACT,
AND  HAS  BEEN  LISTED  BY  THE  DIVISION  ON  ITS LIST OF NON-COMPLIANT
CONTRACTORS.
  9. "STATE AGENCY" SHALL MEAN (A)(I) ANY STATE DEPARTMENT, OR (II)  ANY
DIVISION,  BOARD, COMMISSION OR BUREAU OF ANY STATE DEPARTMENT, OR (III)
THE STATE UNIVERSITY OF NEW YORK AND THE CITY UNIVERSITY  OF  NEW  YORK,
INCLUDING  ALL THEIR CONSTITUENT UNITS EXCEPT COMMUNITY COLLEGES AND THE
INDEPENDENT INSTITUTIONS OPERATING STATUTORY  OR  CONTRACT  COLLEGES  ON
BEHALF  OF  THE  STATE, OR (IV) A BOARD, A MAJORITY OF WHOSE MEMBERS ARE
APPOINTED BY THE GOVERNOR OR WHO SERVE BY VIRTUE OF BEING STATE OFFICERS
OR EMPLOYEES AS DEFINED IN SUBPARAGRAPH (I), (II) OR (III) OF  PARAGRAPH
(I)  OF  SUBDIVISION ONE OF SECTION SEVENTY-THREE OF THE PUBLIC OFFICERS
LAW.
  (B) A "STATE AUTHORITY," AS DEFINED IN SUBDIVISION ONE OF SECTION  TWO
OF THE PUBLIC AUTHORITIES LAW, AND THE FOLLOWING:
ALBANY COUNTY AIRPORT AUTHORITY;
ALBANY PORT DISTRICT COMMISSION;
ALFRED, ALMOND, HORNELLSVILLE SEWER AUTHORITY;
BATTERY PARK CITY AUTHORITY;
CAYUGA COUNTY WATER AND SEWER AUTHORITY;
(NELSON A. ROCKEFELLER) EMPIRE STATE PLAZA PERFORMING ARTS CENTER
CORPORATION;
INDUSTRIAL EXHIBIT AUTHORITY;
LIVINGSTON COUNTY WATER AND SEWER AUTHORITY;
LONG ISLAND POWER AUTHORITY;
LONG ISLAND RAIL ROAD;
LONG ISLAND MARKET AUTHORITY;
MANHATTAN AND BRONX SURFACE TRANSIT OPERATING AUTHORITY;
METRO-NORTH COMMUTER RAILROAD;
METROPOLITAN SUBURBAN BUS AUTHORITY;
METROPOLITAN TRANSPORTATION AUTHORITY;
NATURAL HERITAGE TRUST;
NEW YORK CITY TRANSIT AUTHORITY;
NEW YORK CONVENTION CENTER OPERATING CORPORATION;
NEW YORK STATE BRIDGE AUTHORITY;
NEW YORK STATE OLYMPIC REGIONAL DEVELOPMENT AUTHORITY;
NEW YORK STATE THRUWAY AUTHORITY;
NIAGARA FALLS PUBLIC WATER AUTHORITY;
NIAGARA FALLS WATER BOARD;
PORT OF OSWEGO AUTHORITY;
POWER AUTHORITY OF THE STATE OF NEW YORK;
ROOSEVELT ISLAND OPERATING CORPORATION;
SCHENECTADY METROPLEX DEVELOPMENT AUTHORITY;
STATE INSURANCE FUND;
STATEN ISLAND RAPID TRANSIT OPERATING AUTHORITY;
STATE UNIVERSITY CONSTRUCTION FUND;

S. 7508                            62                            A. 9508

SYRACUSE REGIONAL AIRPORT AUTHORITY;
TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY;
UPPER MOHAWK VALLEY REGIONAL WATER BOARD;
UPPER MOHAWK VALLEY REGIONAL WATER FINANCE AUTHORITY;
UPPER MOHAWK VALLEY MEMORIAL AUDITORIUM AUTHORITY;
URBAN DEVELOPMENT CORPORATION AND ITS SUBSIDIARY CORPORATIONS.
(C) THE FOLLOWING ONLY TO THE EXTENT OF STATE CONTRACTS ENTERED INTO FOR
ITS OWN ACCOUNT OR FOR THE BENEFIT OF A STATE AGENCY AS DEFINED IN PARA-
GRAPH (A) OR (B) OF THIS SUBDIVISION:
DORMITORY AUTHORITY OF THE STATE OF NEW YORK;
FACILITIES DEVELOPMENT CORPORATION;
NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY;
NEW YORK STATE SCIENCE AND TECHNOLOGY FOUNDATION.
  10.  "STATE  CONTRACT" SHALL MEAN: (A) A WRITTEN AGREEMENT OR PURCHASE
ORDER INSTRUMENT, PROVIDING FOR A TOTAL EXPENDITURE IN EXCESS  OF  FIFTY
THOUSAND  DOLLARS, WHEREBY A STATE AGENCY IS COMMITTED TO EXPEND OR DOES
EXPEND OR GRANT FUNDS IN RETURN FOR LABOR, SERVICES  INCLUDING  BUT  NOT
LIMITED  TO  LEGAL, FINANCIAL AND OTHER PROFESSIONAL SERVICES, SUPPLIES,
EQUIPMENT,  MATERIALS  OR  ANY  COMBINATION  OF  THE  FOREGOING,  TO  BE
PERFORMED ON BEHALF OF, FOR, OR RENDERED OR FURNISHED TO THE STATE AGEN-
CY;  (B)  A  WRITTEN AGREEMENT IN EXCESS OF TWO HUNDRED THOUSAND DOLLARS
WHEREBY A STATE AGENCY IS COMMITTED TO EXPEND OR DOES  EXPEND  OR  GRANT
FUNDS  FOR THE ACQUISITION, CONSTRUCTION, DEMOLITION, REPLACEMENT, MAJOR
REPAIR OR RENOVATION OF REAL PROPERTY AND IMPROVEMENTS THEREON; AND  (C)
A  WRITTEN  AGREEMENT  IN EXCESS OF TWO HUNDRED THOUSAND DOLLARS WHEREBY
THE OWNER OF A STATE ASSISTED HOUSING PROJECT IS COMMITTED TO EXPEND  OR
DOES   EXPEND  FUNDS  FOR  THE  ACQUISITION,  CONSTRUCTION,  DEMOLITION,
REPLACEMENT, MAJOR REPAIR OR RENOVATION OF REAL  PROPERTY  AND  IMPROVE-
MENTS THEREON FOR SUCH PROJECT.
  11.  "SUBCONTRACTOR"  SHALL MEAN ANY INDIVIDUAL OR BUSINESS ENTERPRISE
THAT PROVIDES GOODS OR SERVICES TO ANY INDIVIDUAL OR BUSINESS FOR USE IN
THE PERFORMANCE OF A STATE  CONTRACT,  WHETHER  OR  NOT  SUCH  GOODS  OR
SERVICES ARE PROVIDED TO A PARTY TO A STATE CONTRACT.
  §  822.  WORKFORCE PARTICIPATION GOALS.  1. THE DIRECTOR, IN CONSULTA-
TION WITH THE DEPARTMENT,  SHALL  DEVELOP  ASPIRATIONAL  GOALS  FOR  THE
UTILIZATION  OF  MINORITY GROUP MEMBERS AND WOMEN IN CONSTRUCTION TRADE,
PROFESSION, AND OCCUPATION.
  (A) ASPIRATIONAL GOALS FOR THE UTILIZATION OF MINORITY  GROUP  MEMBERS
AND  WOMEN  MUST  SET FORTH THE EXPECTED PARTICIPATION OF MINORITY GROUP
MEMBERS AND WOMEN IN EACH CONSTRUCTION TRADE,  PROFESSION,  AND  OCCUPA-
TION,  AND SHALL BE EXPRESSED AS A PERCENTAGE OF THE TOTAL HOURS OF WORK
TO BE PERFORMED BY EACH TRADE, PROFESSION, AND OCCUPATION BASED  ON  THE
AVAILABILITY  OF  MINORITY  GROUP  MEMBERS  AND WOMEN WITHIN EACH TRADE,
PROFESSION, AND OCCUPATION.
  (I) THE ASPIRATIONAL GOALS SHALL SET FORTH SEPARATE LEVELS OF EXPECTED
PARTICIPATION BY MEN AND WOMEN FOR EACH MINORITY GROUP, AND  FOR  CAUCA-
SIAN WOMEN, IN EACH CONSTRUCTION TRADE, PROFESSION, AND OCCUPATION.
  (II)  ASPIRATIONAL  GOALS  FOR  THE EXPECTED PARTICIPATION OF MINORITY
GROUP MEMBERS AND WOMEN SHALL BE ESTABLISHED  FOR  EACH  COUNTY  OF  THE
STATE.  THE  DIRECTOR  MAY ESTABLISH ASPIRATIONAL GOALS FOR THE EXPECTED
PARTICIPATION OF MINORITY GROUP MEMBERS  AND  WOMEN  FOR  MUNICIPALITIES
WHERE THE DIRECTOR DEEMS FEASIBLE AND APPROPRIATE.
  (III)  THE  DIRECTOR  SHALL,  IN  ESTABLISHING THE ASPIRATIONAL GOALS,
CONSIDER THE FINDINGS OF THE MOST RECENT DISPARITY STUDY AND  ANY  RELE-
VANT DATA PUBLISHED BY THE UNITED STATES CENSUS BUREAU.

S. 7508                            63                            A. 9508

  (B)  THE  DIRECTOR  SHALL  UPDATE THE ASPIRATIONAL GOALS ON A PERIODIC
BASIS, NO LESS THAN ANNUALLY.
  2.  STATE  AGENCIES  SHALL,  FOR EACH INVITATION FOR BIDS, REQUEST FOR
PROPOSALS, OR OTHER SOLICITATION THAT WILL RESULT  IN  THE  AWARD  OF  A
STATE CONTRACT, SET FORTH THE EXPECTED DEGREE OF WORKFORCE PARTICIPATION
BY MINORITY GROUP MEMBERS AND WOMEN.
  (A)  EACH  WORKFORCE  PARTICIPATION GOAL ESTABLISHED BY A STATE AGENCY
SHALL SET FORTH THE EXPECTED LEVEL OF PARTICIPATION  BY  MINORITY  GROUP
MEMBERS  AND  WOMEN  IN  THE  PERFORMANCE OF EACH TRADE, PROFESSION, AND
OCCUPATION REQUIRED IN THE PERFORMANCE OF THE CONTRACT.
  (B) GOALS FOR THE PARTICIPATION OF MINORITY GROUP  MEMBERS  AND  WOMEN
SHALL  SET FORTH SEPARATE GOALS FOR EACH OF THE FOLLOWING GROUPS IN EACH
TRADE, PROFESSION, AND OCCUPATION:
  (I) BLACK MEN;
  (II) BLACK WOMEN;
  (III) HISPANIC MEN;
  (IV) HISPANIC WOMEN;
  (V) NATIVE AMERICAN MEN;
  (VI) NATIVE AMERICAN WOMEN;
  (VII) ASIAN MEN;
  (VIII) ASIAN WOMEN;
  (IX) CAUCASIAN WOMEN.
  (C) IN ESTABLISHING  WORKFORCE  PARTICIPATION  GOALS,  STATE  AGENCIES
SHALL CONSIDER FACTORS INCLUDING, BUT NOT LIMITED TO:
  (I) THE FINDINGS OF THE DISPARITY STUDY;
  (II)  ANY  RELEVANT DATA PUBLISHED BY THE UNITED STATES CENSUS BUREAU;
AND
  (III) IF APPLICABLE, ANY ASPIRATIONAL GOAL ESTABLISHED  BY  THE  DIVI-
SION.
  (D)  IN  ANY CASE WHERE A STATE AGENCY ESTABLISHES A WORKFORCE PARTIC-
IPATION GOAL ON AN INVITATION FOR BIDS, REQUEST FOR PROPOSALS, OR  OTHER
SOLICITATION  THAT  WILL  RESULT  IN  THE  AWARD OF A STATE CONTRACT FOR
CONSTRUCTION THAT DEVIATES FROM THE ASPIRATIONAL GOAL  FOR  CONSTRUCTION
WORK  IN THE COUNTY OR MUNICIPALITY IN WHICH THE WORK WILL BE PERFORMED,
THE STATE AGENCY SHALL DOCUMENT NUMERICAL  EVIDENCE  DEMONSTRATING  THAT
THE  APPLICATION OF THE ASPIRATIONAL GOAL WOULD NOT BE PRACTICAL, FEASI-
BLE, OR APPROPRIATE.
  3. EVERY CONTRACTOR RESPONDING TO AN INVITATION FOR BIDS, REQUEST  FOR
PROPOSALS,  OR  OTHER  SOLICITATION  THAT  WILL RESULT IN THE AWARD OF A
STATE CONTRACT SUBJECT TO WORKFORCE PARTICIPATION GOALS PURSUANT TO THIS
SECTION SHALL AGREE TO MAKE A GOOD FAITH EFFORT TO  ACHIEVE  SUCH  WORK-
FORCE PARTICIPATION GOAL OR REQUEST A WAIVER OF SUCH GOAL.
  (A)  A CONTRACTOR THAT CERTIFIES THAT IT WILL MAKE A GOOD FAITH EFFORT
TO ACHIEVE  A  WORKFORCE  PARTICIPATION  GOAL  SHALL  PROVIDE  WITH  ITS
RESPONSE  TO  THE APPLICABLE INVITATION FOR BIDS, REQUEST FOR PROPOSALS,
OR OTHER SOLICITATION:
  (I) A CERTIFICATION STATING THAT THE CONTRACTOR WILL MAKE A GOOD FAITH
EFFORT TO ACHIEVE THE APPLICABLE WORKFORCE PARTICIPATION GOAL  AND  WILL
CONTRACTUALLY  REQUIRE  ANY  SUBCONTRACTORS  TO THE CONTRACTOR TO MAKE A
GOOD FAITH EFFORT TO ACHIEVE THE APPLICABLE WORKFORCE PARTICIPATION GOAL
IN ANY SUBCONTRACTED WORK, WHICH CERTIFICATION  SHALL  ACKNOWLEDGE  THAT
FAILURE  BY  THE  CONTRACTOR OR ANY OF ITS SUBCONTRACTORS TO MAKE A GOOD
FAITH EFFORT TO ACHIEVE THE APPLICABLE WORKFORCE PARTICIPATION GOAL  MAY
RESULT  IN  A  DETERMINATION  BY  THE  CONTRACTING STATE AGENCY THAT THE
CONTRACTOR OR ITS SUBCONTRACTOR IS A NON-COMPLIANT CONTRACTOR;

S. 7508                            64                            A. 9508

  (II) THE LEVEL OF ANTICIPATED PARTICIPATION BY MINORITY GROUP  MEMBERS
AND  WOMEN  AS  EMPLOYEES TO THE CONTRACTOR, OR, IF THE STATE AGENCY HAS
SPECIFICALLY INDICATED THAT SUCH DOCUMENTATION IS NOT REQUIRED  AS  PART
OF  THE  RESPONSE  TO THE INVITATION FOR BIDS, REQUEST FOR PROPOSALS, OR
OTHER SOLICITATION, A DATE CERTAIN FOR THE SUBMISSION OF SUCH DOCUMENTA-
TION AFTER THE AWARD OF THE STATE CONTRACT;
  (III)  A LIST OF ALL SUBCONTRACTORS ANTICIPATED TO PERFORM WORK ON THE
STATE CONTRACT AND THE LEVEL OF ANTICIPATED  PARTICIPATION  BY  MINORITY
GROUP  MEMBERS  AND WOMEN AS EMPLOYEES TO EACH SUBCONTRACTOR, OR, IF THE
STATE AGENCY HAS SPECIFICALLY INDICATED THAT SUCH DOCUMENTATION  IS  NOT
REQUIRED AS PART OF THE RESPONSE TO THE INVITATION FOR BIDS, REQUEST FOR
PROPOSALS,  OR  OTHER SOLICITATION, A DATE CERTAIN FOR THE SUBMISSION OF
SUCH DOCUMENTATION AFTER THE AWARD OF THE STATE CONTRACT; AND
  (IV) SUCH OTHER INFORMATION AS  THE  CONTRACTING  STATE  AGENCY  SHALL
REQUIRE.
  (B)  A  CONTRACTOR THAT REQUESTS A WAIVER OF A WORKFORCE PARTICIPATION
GOAL SHALL PROVIDE WITH ITS RESPONSE TO THE  APPLICABLE  INVITATION  FOR
BIDS, REQUEST FOR PROPOSALS, OR OTHER SOLICITATION:
  (I)  NUMERICAL EVIDENCE SETTING FORTH WHY THE ACHIEVEMENT OF THE WORK-
FORCE PARTICIPATION GOAL IS NOT PRACTICAL, FEASIBLE, OR  APPROPRIATE  IN
LIGHT  OF  THE  TRADES, PROFESSIONS, AND OCCUPATIONS REQUIRED TO PERFORM
THE WORK OF THE STATE CONTRACT;
  (II) DOCUMENTATION OF THE CONTRACTOR'S EFFORTS,  AND  ANY  EFFORTS  BY
SUBCONTRACTORS  TO  THE CONTRACTOR, TO PROMOTE THE INCLUSION OF MINORITY
GROUP MEMBERS AND WOMEN IN TRADES, PROFESSIONS, AND OCCUPATIONS REQUIRED
IN THE PERFORMANCE OF THE STATE CONTRACT;
  (III) THE MAXIMUM FEASIBLE LEVEL OF PARTICIPATION  BY  MINORITY  GROUP
MEMBERS  AND  WOMEN  IN EACH OF THE TRADES, PROFESSIONS, AND OCCUPATIONS
REQUIRED IN THE PERFORMANCE OF THE WORK OF THE STATE CONTRACT;
  (IV) THE LEVEL OF ANTICIPATED PARTICIPATION BY MINORITY GROUP  MEMBERS
AND WOMEN AS EMPLOYEES TO THE CONTRACTOR;
  (V)  A  LIST  OF ALL SUBCONTRACTORS ANTICIPATED TO PERFORM WORK ON THE
STATE CONTRACT AND THE LEVEL OF ANTICIPATED  PARTICIPATION  BY  MINORITY
GROUP MEMBERS AND WOMEN AS EMPLOYEES TO EACH SUBCONTRACTOR; AND
  (VI)  ANY  OTHER RELEVANT INFORMATION EVIDENCING THAT THE CONTRACTOR'S
ACHIEVEMENT OF THE WORKFORCE PARTICIPATION GOAL WOULD NOT BE  PRACTICAL,
FEASIBLE, OR APPROPRIATE.
  4.  A  STATE  AGENCY  SHALL NOT AWARD A STATE CONTRACT TO A CONTRACTOR
UNLESS THE CONTRACTOR HAS (I) CERTIFIED THAT IT WILL MAKE A  GOOD  FAITH
EFFORT  TO  ACHIEVE  THE  APPLICABLE  WORKFORCE  PARTICIPATION  GOAL AND
PROVIDED DOCUMENTATION OF THE WORKFORCE ANTICIPATED TO PERFORM THE  WORK
OF THE STATE CONTRACT OR (II) SUBMITTED A WAIVER REQUEST WHICH THE STATE
AGENCY  DEEMS  TO REFLECT THE MAXIMUM FEASIBLE PARTICIPATION OF MINORITY
GROUP MEMBERS AND WOMEN IN EACH OF THE TRADES, PROFESSIONS, AND  OCCUPA-
TIONS REQUIRED IN PERFORMANCE OF THE WORK OF THE STATE CONTRACT.
  (A)  IN  THE EVENT THAT A CONTRACTOR SUBMITS A CERTIFICATION OR WAIVER
REQUEST THAT IS ACCEPTED BY THE STATE AGENCY,  THE  STATE  AGENCY  SHALL
ESTABLISH  IN  THE STATE CONTRACT THE EXPECTED LEVEL OF PARTICIPATION BY
MINORITY GROUP MEMBERS AND WOMEN IN EACH OF THE TRADES, PROFESSIONS, AND
OCCUPATIONS REQUIRED IN PERFORMANCE OF THE WORK OF THE  STATE  CONTRACT,
REQUIRE  THAT  THE  CONTRACTOR  MAKE  GOOD FAITH EFFORTS TO ACHIEVE SUCH
WORKFORCE PARTICIPATION GOALS, REQUIRE THAT THE CONTRACTOR  REQUIRE  ANY
SUBCONTRACTORS  TO  MAKE  A  GOOD FAITH EFFORT TO ACHIEVE THE APPLICABLE
WORKFORCE PARTICIPATION GOAL IN ANY  SUBCONTRACTED  WORK,  AND  INDICATE
THAT  THE FAILURE OF THE CONTRACTOR OR ANY OF ITS SUBCONTRACTORS TO MAKE
A GOOD FAITH EFFORT TO ACHIEVE  THE  WORKFORCE  PARTICIPATION  GOAL  MAY

S. 7508                            65                            A. 9508

RESULT  IN  THE CONTRACTOR OR SUBCONTRACTOR BEING DEEMED A NON-COMPLIANT
CONTRACTOR.
  (B)  IN  THE  EVENT THAT A CONTRACTOR FAILS TO SUBMIT A CERTIFICATION,
WAIVER REQUEST, OR ANY OTHER INFORMATION REQUIRED BY THE  STATE  AGENCY,
OR  THE  STATE AGENCY DETERMINES THAT A CONTRACTOR'S WAIVER REQUEST DOES
NOT DEMONSTRATE THAT THE  APPLICABLE  WORKFORCE  PARTICIPATION  GOAL  IS
IMPRACTICAL, UNFEASIBLE, OR INAPPROPRIATE, THE STATE AGENCY SHALL NOTIFY
THE  CONTRACTOR  OF THE DEFICIENCY IN WRITING AND PROVIDE THE CONTRACTOR
FIVE BUSINESS DAYS TO REMEDY THE  NOTICED  DEFICIENCY.  A  STATE  AGENCY
SHALL  REJECT  ANY  BID OR PROPOSAL OF A CONTRACTOR THAT FAILS TO TIMELY
RESPOND TO A NOTICE OF DEFICIENCY OR TO PROVIDE DOCUMENTATION  REMEDYING
THE DEFICIENCY TO THE SATISFACTION OF THE STATE AGENCY.
  (I)  WHERE  FAILURE TO REMEDY ANY NOTIFIED DEFICIENCY IN THE WORKFORCE
UTILIZATION PLAN IS A GROUND FOR DISQUALIFICATION, THAT  ISSUE  AND  ALL
OTHER  GROUNDS  FOR  DISQUALIFICATION  SHALL BE STATED IN WRITING BY THE
CONTRACTING STATE AGENCY. THE CONTRACTOR SHALL BE ENTITLED TO AN  ADMIN-
ISTRATIVE  HEARING,  ON  A  RECORD,  INVOLVING ALL GROUNDS STATED BY THE
CONTRACTING STATE AGENCY IN ITS NOTICE OF THE CONTRACTOR'S DISQUALIFICA-
TION. SUCH HEARING SHALL BE CONDUCTED BY THE  APPROPRIATE  AUTHORITY  OF
THE  CONTRACTING AGENCY TO REVIEW THE DETERMINATION OF DISQUALIFICATION.
A FINAL ADMINISTRATIVE DETERMINATION MADE FOLLOWING SUCH  HEARING  SHALL
BE  REVIEWABLE  IN A PROCEEDING COMMENCED UNDER ARTICLE SEVENTY-EIGHT OF
THE CIVIL PRACTICE LAW AND  RULES,  PROVIDED  THAT  SUCH  PROCEEDING  IS
COMMENCED  WITHIN  THIRTY  DAYS  OF  THE  NOTICE GIVEN BY CERTIFIED MAIL
RETURN RECEIPT REQUESTED RENDERING SUCH  FINAL  ADMINISTRATIVE  DETERMI-
NATION.  SUCH PROCEEDING SHALL BE COMMENCED IN THE SUPREME COURT, APPEL-
LATE DIVISION, THIRD DEPARTMENT AND SUCH PROCEEDING SHALL  BE  PREFERRED
OVER  ALL  OTHER CIVIL CAUSES EXCEPT ELECTION CAUSES, AND SHALL BE HEARD
AND DETERMINED IN PREFERENCE TO ALL OTHER CIVIL BUSINESS PENDING  THERE-
IN,  EXCEPT  ELECTION MATTERS, IRRESPECTIVE OF POSITION ON THE CALENDAR.
APPEALS TAKEN TO THE COURT OF APPEALS OF THE STATE OF NEW YORK SHALL  BE
SUBJECT TO THE SAME PREFERENCE.
  §  823.  REPORTING.    1. STATE CONTRACTS SHALL REQUIRE CONTRACTORS TO
SUBMIT, AND TO REQUIRE ANY SUBCONTRACTORS TO SUBMIT, TO THE  CONTRACTING
STATE  AGENCY  REPORTS  DOCUMENTING THE HOURS WORKED BY EMPLOYEES OF THE
CONTRACTOR AND ANY SUBCONTRACTORS IN THE PERFORMANCE OF THE WORK OF  THE
STATE  CONTRACT. SUCH REPORTS SHALL BE SUBMITTED NO LESS FREQUENTLY THAN
MONTHLY FOR STATE CONTRACTS FOR CONSTRUCTION AND QUARTERLY FOR ALL OTHER
STATE CONTRACTS.  SUCH  REPORTS  SHALL  IDENTIFY  THE  RACE,  ETHNICITY,
GENDER, AND TRADE, PROFESSION, OR OCCUPATION OF EACH EMPLOYEE PERFORMING
WORK ON A STATE CONTRACT.
  2.  STATE  AGENCIES  SHALL SUBMIT PERIODIC REPORTS TO THE DIRECTOR, OR
THE DESIGNEE OF THE DIRECTOR, CONCERNING THE PARTICIPATION  OF  MINORITY
GROUP MEMBERS AND WOMEN IN STATE CONTRACTS LET BY SUCH AGENCIES AND SUCH
STATE  AGENCIES'  COMPLIANCE  WITH  THIS  ARTICLE. SUCH REPORTS SHALL BE
SUBMITTED AT SUCH TIME, AND INCLUDE SUCH INFORMATION,  AS  THE  DIRECTOR
SHALL  REQUIRE IN REGULATIONS. STATE AGENCIES SHALL MAKE AVAILABLE THEIR
FACILITIES, BOOKS, AND RECORDS FOR INSPECTION, UPON  REASONABLE  NOTICE,
BY THE DIRECTOR OR THE DIRECTOR'S DESIGNEE.
  3.  THE DEPARTMENT SHALL PROVIDE SUCH ASSISTANCE AS THE DIRECTOR SHALL
REQUIRE IN CARRYING OUT THE REQUIREMENTS OF THIS SECTION.
  § 824. ENFORCEMENT.  1. WHERE IT APPEARS  THAT  A  CONTRACTOR  CANNOT,
AFTER  A  GOOD  FAITH EFFORT, MEET THE WORKFORCE PARTICIPATION GOALS SET
FORTH IN A PARTICULAR STATE CONTRACT, A CONTRACTOR MAY  FILE  A  WRITTEN
APPLICATION  WITH  THE  CONTRACTING STATE AGENCY REQUESTING A PARTIAL OR
TOTAL WAIVER OF SUCH REQUIREMENTS. SUCH  REQUEST  SHALL  SET  FORTH  THE

S. 7508                            66                            A. 9508

REASONS  FOR  SUCH  CONTRACTOR'S INABILITY TO MEET THE WORKFORCE PARTIC-
IPATION GOAL, SPECIFICALLY DESCRIBE THE REASONS FOR ANY DEVIATIONS  FROM
THE  ANTICIPATED  WORKFORCE  PARTICIPATION SET FORTH IN THE CONTRACTOR'S
BID OR PROPOSAL LEADING TO THE AWARD OF THE STATE CONTRACT, AND DESCRIBE
THE  EFFORTS  BY  THE  CONTRACTOR  AND ANY SUBCONTRACTORS TO ACHIEVE THE
MAXIMUM FEASIBLE PARTICIPATION OF MINORITY GROUP MEMBERS  AND  WOMEN  IN
THE  PERFORMANCE  OF  THE WORK OF THE STATE CONTRACT. WHERE THE CONTRAC-
TOR'S INABILITY TO ACHIEVE THE WORKFORCE PARTICIPATION GOAL ON  A  STATE
CONTRACT IS ATTRIBUTABLE TO THE FAILURE OF ONE OR MORE SUBCONTRACTORS TO
MAKE GOOD FAITH EFFORTS TO ACHIEVE THE MAXIMUM FEASIBLE PARTICIPATION OF
MINORITY  GROUP  MEMBERS AND WOMEN IN THE PERFORMANCE OF THE WORK OF THE
STATE CONTRACT, THE CONTRACTOR  SHALL  IDENTIFY  SUCH  SUBCONTRACTOR  OR
SUBCONTRACTORS TO THE CONTRACTING STATE AGENCY.
  2.  A  STATE  AGENCY  SHALL  GRANT A REQUEST FOR A WAIVER OF WORKFORCE
PARTICIPATION GOALS ON A STATE CONTRACT WHERE:
  (A) THE CONTRACTOR DEMONSTRATES THAT THE CONTRACTOR  AND  ITS  SUBCON-
TRACTORS  MADE GOOD FAITH EFFORTS TO ACHIEVE THE WORKFORCE PARTICIPATION
GOAL ON THE STATE CONTRACT, AND THAT INSUFFICIENT MINORITY GROUP MEMBERS
OR WOMEN WERE AVAILABLE IN  THE  TRADES,  PROFESSIONS,  AND  OCCUPATIONS
REQUIRED TO PERFORM THE WORK OF THE STATE CONTRACT; OR,
  (B)  THE  CONTRACTOR CONTRACTUALLY REQUIRED EACH OF ITS SUBCONTRACTORS
TO MAKE A GOOD FAITH EFFORT TO  ACHIEVE  THE  MAXIMUM  FEASIBLE  PARTIC-
IPATION  OF  MINORITY  GROUP MEMBERS AND WOMEN IN THE PERFORMANCE OF THE
SUBCONTRACTED WORK, PERIODICALLY MONITORED SUCH SUBCONTRACTORS'  DEPLOY-
MENT  OF  MINORITY  GROUP  MEMBERS  AND  WOMEN IN THE PERFORMANCE OF THE
SUBCONTRACTED WORK, PROVIDED NOTICE TO SUCH SUBCONTRACTORS OF ANY  DEFI-
CIENCIES  IN THEIR DEPLOYMENT OF MINORITY GROUP MEMBERS AND WOMEN IN THE
PERFORMANCE OF SUCH SUBCONTRACTED WORK, AND COULD NOT ACHIEVE THE  WORK-
FORCE PARTICIPATION GOAL FOR ONE OR MORE TRADES, PROFESSIONS, OR OCCUPA-
TIONS WITHOUT THE GOOD FAITH EFFORTS OF SUCH SUBCONTRACTORS.
  3.  WHERE A STATE AGENCY DENIES A CONTRACTOR'S REQUEST FOR A WAIVER OF
WORKFORCE PARTICIPATION GOALS PURSUANT TO THIS SECTION, THE STATE AGENCY
SHALL RECOMMEND TO THE DIRECTOR AND THE DEPARTMENT THAT  THE  CONTRACTOR
BE DEEMED A NON-COMPLIANT CONTRACTOR.
  4.  WHERE  A  STATE  AGENCY GRANTS A REQUEST FOR A WAIVER OF WORKFORCE
PARTICIPATION GOALS PURSUANT TO  THIS  SECTION  BASED  ON  ONE  OR  MORE
SUBCONTRACTORS'  FAILURE TO MAKE GOOD FAITH EFFORTS TO ACHIEVE THE MAXI-
MUM FEASIBLE PARTICIPATION OF MINORITY GROUP MEMBERS AND  WOMEN  IN  THE
PERFORMANCE  OF THE SUBCONTRACTED WORK, THE STATE AGENCY SHALL RECOMMEND
TO THE DIRECTOR AND THE DEPARTMENT THAT THE SUBCONTRACTOR  BE  DEEMED  A
NON-COMPLIANT CONTRACTOR.
  5.  UPON  RECEIPT  OF  A  RECOMMENDATION  FROM  A  STATE AGENCY THAT A
CONTRACTOR OR SUBCONTRACTOR SHOULD BE DEEMED A NON-COMPLIANT CONTRACTOR,
THE DIRECTOR SHALL, WITH THE ASSISTANCE OF THE  DEPARTMENT,  REVIEW  THE
FACTS  AND  CIRCUMSTANCES  FORMING  THE  BASIS OF THE RECOMMENDATION AND
ISSUE A DETERMINATION AS TO WHETHER OR NOT THE CONTRACTOR OR SUBCONTRAC-
TOR SHOULD BE DEEMED A NON-COMPLIANT CONTRACTOR AND, IF SO, THE DURATION
OF SUCH STATUS AS A NON-COMPLIANT CONTRACTOR. IN DETERMINING  THE  DURA-
TION  OF  A  CONTRACTOR'S  OR  SUBCONTRACTOR'S STATUS AS A NON-COMPLIANT
CONTRACTOR, THE DIRECTOR SHALL CONSIDER:
  (I) WHETHER THE CONTRACTOR OR SUBCONTRACTOR HAS PREVIOUSLY BEEN DEEMED
A NON-COMPLIANT CONTRACTOR;
  (II) THE NUMBER OF HOURS OF EXPECTED PARTICIPATION BY  MINORITY  GROUP
MEMBERS  AND  WOMEN  LOST AS A RESULT OF THE CONTRACTOR'S OR SUBCONTRAC-
TOR'S FAILURE TO MAKE GOOD  FAITH  EFFORTS  TO  INCLUDE  MINORITY  GROUP
MEMBERS OR WOMEN IN THE PERFORMANCE OF ONE OR MORE STATE CONTRACTS; AND

S. 7508                            67                            A. 9508

  (III)  WHETHER  THE CONTRACTOR OR SUBCONTRACTOR HAS OFFERED TO PROVIDE
EMPLOYMENT OPPORTUNITIES, TRAINING, OR OTHER REMEDIAL BENEFITS TO MINOR-
ITY GROUP MEMBERS OR WOMEN IN RELEVANT TRADES, PROFESSIONS,  OR  OCCUPA-
TIONS.
  6.  A CONTRACTOR OR SUBCONTRACTOR DEEMED A NON-COMPLIANT CONTRACTOR BY
THE DIRECTOR MAY REQUEST AN ADMINISTRATIVE HEARING BEFORE AN INDEPENDENT
HEARING OFFICER TO APPEAL THE DETERMINATION OF THE DIRECTOR.  THE  DECI-
SION  OF  THE  HEARING OFFICER SHALL BE FINAL AND MAY ONLY BE VACATED OR
MODIFIED AS PROVIDED IN ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE  LAW
AND  RULES  UPON  AN  APPLICATION  MADE WITHIN THE TIME PROVIDED BY SUCH
ARTICLE.
  7. UPON A FINAL DETERMINATION THAT A CONTRACTOR OR SUBCONTRACTOR IS  A
NON-COMPLIANT  CONTRACTOR,  THE  DIRECTOR  SHALL  LIST THE CONTRACTOR OR
SUBCONTRACTOR AS SUCH ON ITS WEBSITE  AND  INDICATE  THE  TERM  OF  SUCH
CONTRACTOR'S  OR SUBCONTRACTOR'S STATUS AS A NON-COMPLIANT CONTRACTOR. A
NON-COMPLIANT  CONTRACTOR  SHALL  BE  INELIGIBLE  TO  PARTICIPATE  AS  A
CONTRACTOR OR SUBCONTRACTOR ON ANY STATE CONTRACT.
  §  825.  POWERS AND RESPONSIBILITIES OF THE DIVISION.  1. THE DIRECTOR
SHALL POST TO THE WEBSITE OF THE DIVISION ON OR BEFORE  APRIL  FIRST  OF
EACH  YEAR  THE ASPIRATIONAL GOALS FOR THE UTILIZATION OF MINORITY GROUP
MEMBERS AND WOMEN IN CONSTRUCTION REQUIRED  PURSUANT  TO  SECTION  EIGHT
HUNDRED TWENTY-TWO OF THIS ARTICLE.
  2.  THE DIRECTOR SHALL PROMULGATE RULES AND REGULATIONS FOR THE IMPLE-
MENTATION OF THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO, PROCEDURES FOR
THE SUBMISSION OF CERTIFICATIONS  AND  WORKFORCE  UTILIZATION  PLANS  BY
CONTRACTORS,  CRITERIA  FOR  GRANTING WAIVERS OF WORKFORCE PARTICIPATION
GOALS, AND THE CONTENTS OF REPORTS BY STATE  AGENCIES  CONCERNING  THEIR
IMPLEMENTATION OF THE REQUIREMENTS OF THIS ARTICLE.
  3.  THE  DIVISION  SHALL,  FROM  TIME  TO TIME, REVIEW THE FACILITIES,
BOOKS, AND RECORDS OF STATE AGENCIES TO ASCERTAIN THE ACCURACY OF  THEIR
REPORTS  AND THEIR COMPLIANCE WITH THE REQUIREMENTS OF THIS ARTICLE. THE
DEPARTMENT SHALL PROVIDE SUCH ASSISTANCE AS THE DIRECTOR  SHALL  REQUIRE
IN CARRYING OUT THE REQUIREMENTS OF THIS SECTION.
  §  826.  SEVERABILITY.  IF ANY CLAUSE, SENTENCE, PARAGRAPH, SECTION OR
PART OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT  JURIS-
DICTION  TO BE INVALID, THE JUDGMENT SHALL NOT AFFECT, IMPAIR OR INVALI-
DATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN  ITS  OPERATION  TO
THE CLAUSE, SENTENCE, PARAGRAPH, SECTION OR PART OF THIS ARTICLE DIRECT-
LY  INVOLVED  IN  THE  CONTROVERSY IN WHICH THE JUDGMENT SHALL HAVE BEEN
RENDERED.
  § 16. This act shall take effect on April 1, 2018; provided,  however,
that
  (a)  the  amendments  to  article  15-A  of the executive law, made by
sections one, two, three, four, five, six, seven and eight of this  act,
shall  not  affect  the  expiration and repeal of such article and shall
expire and be deemed repealed therewith;
  (b) the amendments to section 163 of the state finance  law,  made  by
section  nine of this act, shall not affect the expiration and repeal of
such section, and shall expire and be deemed repealed therewith;
  (c) the amendments to section 139-j of the state finance law, made  by
section  eleven  of this act, shall not affect the expiration and repeal
of such section, and shall expire and be deemed repealed therewith; and
  (d) section fifteen of this act shall expire and  be  deemed  repealed
December 31, 2023.

                                 PART R

S. 7508                            68                            A. 9508

  Section  1. Paragraph (i) of subdivision (a) of section 2 of part F of
chapter 60 of the laws of 2015, constituting the infrastructure  invest-
ment  act, as amended by section 1 of part RRR of chapter 59 of the laws
of 2017, is amended to read as follows:
  (i)  "authorized  state  entity" shall mean the New York state thruway
authority, the department of transportation, the office of parks, recre-
ation and historic preservation, the department of environmental conser-
vation [and], the New York state bridge authority, THE DORMITORY AUTHOR-
ITY, THE NEW YORK STATE URBAN DEVELOPMENT  CORPORATION,  THE  OFFICE  OF
GENERAL SERVICES, THE DEPARTMENT OF HEALTH, AND THE NEW YORK STATE OLYM-
PIC REGIONAL DEVELOPMENT AUTHORITY.
  § 2. Section 3 of part F of chapter 60 of the laws of 2015, constitut-
ing  the  infrastructure investment act, as amended by section 3 of part
RRR of chapter 59 of the laws of 2017, is amended to read as follows:
  § 3. Notwithstanding the provisions of section 38 of the highway  law,
section  136-a  of  the state finance law, [section] SECTIONS 359, 1678,
1680, 1680-A  AND  2879-A  of  the  public  authorities  law,  [section]
SECTIONS  407-A, 6281 AND 7210 of the education law, SECTIONS 8 AND 9 OF
THE PUBLIC BUILDINGS LAW, SECTION 11 OF CHAPTER 795 OF THE LAWS OF 1967,
SECTIONS 8 AND 9 OF SECTION 1 OF CHAPTER 359 OF  THE  LAWS  OF  1968  AS
AMENDED,  SECTION 11 OF SECTION 1 OF CHAPTER 174 OF THE LAWS OF 1968, AS
AMENDED, SECTION 29 OF CHAPTER 337 OF THE LAWS OF 1972,  SECTION  21  OF
CHAPTER  464  OF  THE LAWS OF 1972, SECTION 103 OF THE GENERAL MUNICIPAL
LAW, and the provisions of  any  other  law  to  the  contrary,  and  in
conformity with the requirements of this act, an authorized state entity
may  utilize the alternative delivery method referred to as design-build
contracts, in consultation with relevant local labor  organizations  and
construction  industry,  for  capital  projects LOCATED IN THE STATE AND
related to [the state's] physical  infrastructure,  including,  but  not
limited  to,  [the  state's] BUILDINGS AND APPURTENANT STRUCTURES, high-
ways, bridges, dams, flood control projects, canals, and parks,  includ-
ing, but not limited to, to repair damage caused by natural disaster, to
correct  health  and  safety  defects,  to comply with federal and state
laws, standards, and regulations,  to  extend  the  useful  life  of  or
replace  [the  state's]  BUILDINGS AND APPURTENANT STRUCTURES, highways,
bridges, dams, flood control projects, canals, and parks or  to  improve
or  add to [the state's] BUILDINGS AND APPURTENANT STRUCTURES, highways,
bridges, dams, flood control projects, canals, and parks; provided  that
for  the  contracts  executed  by  the department of transportation, the
office of parks, recreation and historic preservation, or the department
of environmental conservation, THE OFFICE OF THE GENERAL SERVICES OR THE
DEPARTMENT OF HEALTH, the total cost of each such project shall  not  be
less than ten million dollars ($10,000,000).
  § 3. Section 7 of part F of chapter 60 of the laws of 2015, constitut-
ing the infrastructure investment act, is amended to read as follows:
  §  7.  If  otherwise  applicable,  capital  projects undertaken by the
authorized state entity pursuant to this act shall be subject to section
135 of the state finance law, SECTION 101 OF THE GENERAL  MUNICIPAL  LAW
and  section 222 of the labor law; PROVIDED, HOWEVER, THAT AN AUTHORIZED
ENTITY MAY FULFILL ITS  OBLIGATIONS  UNDER  SECTION  135  OF  THE  STATE
FINANCE LAW OR SECTION 101 OF THE GENERAL MUNICIPAL LAW BY REQUIRING THE
CONTRACTOR TO PREPARE SEPARATE SPECIFICATIONS IN ACCORDANCE WITH SECTION
135 OF THE STATE FINANCE LAW OR SECTION 101 OF THE GENERAL MUNICIPAL LAW
AS THE CASE MAY BE.
  §  4.  Section 13 of part F of chapter 60 of the laws of 2015, consti-
tuting the infrastructure investment act, as amended by  section  11  of

S. 7508                            69                            A. 9508

part  RRR  of  chapter  59  of  the  laws of 2017, is amended to read as
follows:
  §  13. Alternative construction awarding processes.  (a) Notwithstand-
ing the provisions of any other law  to  the  contrary,  the  authorized
state entity may award a construction contract:
  1. To the contractor offering the best value[; or]:
  [2.]  (I) Utilizing a cost-plus not to exceed guaranteed maximum price
form of contract in which the authorized state entity shall be  entitled
to monitor and audit all project costs. In establishing the schedule and
process for determining a guaranteed maximum price, the contract between
the authorized state entity and the contractor shall:
  [(i)]  (A)  describe  the scope of the work and the cost of performing
such work;
  [(ii)] (B) include a detailed line item cost breakdown;
  [(iii)] (C) include a list of all drawings, specifications  and  other
information on which the guaranteed maximum price is based;
  [(iv)]  (D)  include the dates for substantial and final completion on
which the guaranteed maximum price is based; and
  [(v)] (E) include a schedule of unit prices; or
  [3.] (II) Utilizing a lump sum contract in which the contractor agrees
to accept a set dollar amount for a contract which  comprises  a  single
bid  without providing a cost breakdown for all costs such as for equip-
ment, labor, materials, as well as such contractor's profit for complet-
ing all items of work comprising the project WHICH LUMP SUM PRICE MAY BE
NEGOTIATED AND ESTABLISHED BY THE AUTHORIZED STATE  ENTITY  BASED  ON  A
PROPOSED GUARANTEED MAXIMUM PRICE.
  2.  THE  DESIGN-BUILD  CONTRACT MAY INCLUDE BOTH LUMP SUM ELEMENTS AND
COST-PLUS NOT TO EXCEED GUARANTEED MAXIMUM PRICE ELEMENTS, AND ALSO  MAY
PROVIDE FOR PROFESSIONAL SERVICES ON A FEE-FOR-SERVICE BASIS.
  (b)  Capital  projects  undertaken  by  an authorized state entity may
include an incentive clause in  the  contract  for  various  performance
objectives, but the incentive clause shall not include an incentive that
exceeds the quantifiable value of the benefit received by the authorized
state  entity.  [The] NOTWITHSTANDING THE PROVISIONS OF SECTIONS 136 AND
137 OF THE STATE FINANCE LAW, THE authorized state entity  shall  estab-
lish  such  performance and payment bonds, BONDS OR OTHER FORM OF UNDER-
TAKING, as it deems necessary.
  § 5. Part F of chapter 60  of  the  laws  of  2015,  constituting  the
infrastructure  investment  act, is amended by adding a new section 15-a
to read as follows:
  § 15-A. ANY CONTRACT AWARDED PURSUANT TO THIS ACT SHALL BE  DEEMED  TO
BE AWARDED PURSUANT TO A COMPETITIVE PROCUREMENT FOR PURPOSES OF SECTION
2879-A OF THE PUBLIC AUTHORITIES LAW.
  §  6.  This  act shall take effect immediately; provided, however that
the amendments to the infrastructure investment act made by sections one
through five of this act shall not affect the repeal  of  such  act  and
shall be deemed repealed therewith.

                                 PART S

  Section  1.  Section 2 of chapter 21 of the laws of 2003, amending the
executive law relating to permitting the secretary of state  to  provide
special  handling  for  all documents filed or issued by the division of
corporations and to permit additional levels of such expedited  service,
as  amended by section 1 of part Q of chapter 58 of the laws of 2017, is
amended to read as follows:

S. 7508                            70                            A. 9508

  § 2. This act shall take effect immediately,  provided  however,  that
section  one  of this act shall be deemed to have been in full force and
effect on and after April 1, 2003 and shall expire  March  31,  [2018]
2019.
  §  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after March 31, 2018.

                                 PART T

  Section 1. Paragraph (d) of section 304 of  the  business  corporation
law is amended to read as follows:
  (d)  ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY OF
STATE AS AGENT OF A DOMESTIC CORPORATION OR FOREIGN CORPORATION FOR  THE
PURPOSE  OF  MAILING PROCESS SHALL BE THE POST OFFICE ADDRESS, WITHIN OR
WITHOUT THE STATE, TO WHICH A PERSON SHALL  MAIL  PROCESS  AGAINST  SUCH
CORPORATION  AS  REQUIRED  BY THIS ARTICLE. Any designated [post-office]
POST OFFICE address to which the secretary of state OR  A  PERSON  shall
mail  a  copy of ANY process served upon [him] THE SECRETARY OF STATE as
agent of a domestic corporation or a foreign corporation, shall continue
until the filing of a certificate under this chapter directing the mail-
ing to a different [post-office] POST OFFICE address.
  § 2. Paragraph (a) of section 305 of the business corporation law,  as
amended  by  chapter  131  of  the  laws  of 1985, is amended to read as
follows:
  (a) In addition to such designation of the secretary of  state,  every
domestic  corporation  or authorized foreign corporation may designate a
registered agent in this state upon whom  process  against  such  corpo-
ration may be served. The agent shall be a natural person who is a resi-
dent  of or has a business address in this state [or], a domestic corpo-
ration or foreign corporation of any type or kind formed, or  authorized
to  do  business  in this state[,] under this chapter or under any other
statute of this state,  OR  A  DOMESTIC  LIMITED  LIABILITY  COMPANY  OR
FOREIGN LIMITED LIABILITY COMPANY FORMED OR AUTHORIZED TO DO BUSINESS IN
THIS STATE.
  §  3.  Subparagraph  1 of paragraph (b) of section 306 of the business
corporation law, as amended by chapter 419  of  the  laws  of  1990,  is
amended to read as follows:
  (1)  Service of process on the secretary of state as agent of a domes-
tic or authorized foreign corporation, OR OTHER BUSINESS ENTITY THAT HAS
DESIGNATED THE SECRETARY OF STATE AS AGENT FOR SERVICE OF PROCESS PURSU-
ANT TO ARTICLE NINE OF THIS CHAPTER, shall be made by [personally deliv-
ering to and leaving with the secretary of state or a  deputy,  or  with
any person authorized by the secretary of state to receive such service,
at  the  office of the department of state in the city of Albany, dupli-
cate copies of such process together with the statutory fee,  which  fee
shall  be  a  taxable  disbursement]  MAILING  THE PROCESS AND NOTICE OF
SERVICE THEREOF BY CERTIFIED MAIL, RETURN  RECEIPT  REQUESTED,  TO  SUCH
CORPORATION OR OTHER BUSINESS ENTITY, AT THE POST OFFICE ADDRESS ON FILE
IN  THE DEPARTMENT OF STATE SPECIFIED FOR THIS PURPOSE. IF A DOMESTIC OR
AUTHORIZED FOREIGN CORPORATION HAS  NO  SUCH  ADDRESS  ON  FILE  IN  THE
DEPARTMENT  OF STATE, THE PROCESS AND NOTICE OF SERVICE THEREOF SHALL BE
MAILED, IN THE CASE OF A DOMESTIC CORPORATION, IN CARE OF  ANY  DIRECTOR
NAMED  IN  ITS  CERTIFICATE  OF  INCORPORATION AT THE DIRECTOR'S ADDRESS
STATED THEREIN OR, IN THE CASE OF AN AUTHORIZED FOREIGN CORPORATION,  TO
SUCH  CORPORATION AT THE ADDRESS OF ITS OFFICE WITHIN THIS STATE ON FILE
IN THE DEPARTMENT. ON THE SAME DAY THAT SUCH PROCESS IS MAILED, A DUPLI-

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CATE COPY OF SUCH PROCESS AND PROOF OF MAILING TOGETHER WITH THE  STATU-
TORY FEE, WHICH FEE SHALL BE A TAXABLE DISBURSEMENT, SHALL BE PERSONALLY
DELIVERED  TO  AND LEFT WITH THE SECRETARY OF STATE OR A DEPUTY, OR WITH
ANY PERSON AUTHORIZED BY THE SECRETARY OF STATE TO RECEIVE SUCH SERVICE,
AT THE OFFICE OF THE DEPARTMENT OF STATE IN THE CITY OF ALBANY. PROOF OF
MAILING  SHALL  BE BY AFFIDAVIT OF COMPLIANCE WITH THIS SECTION. Service
of process on  such  corporation  OR  OTHER  BUSINESS  ENTITY  shall  be
complete  when  the  secretary  of state is so served. [The secretary of
state shall promptly send one of such copies by certified  mail,  return
receipt  requested,  to such corporation, at the post office address, on
file in the department of state, specified for the purpose. If a  domes-
tic or authorized foreign corporation has no such address on file in the
department  of state, the secretary of state shall so mail such copy, in
the case of a domestic corporation, in care of any director named in its
certificate of incorporation at the director's  address  stated  therein
or,  in  the  case  of an authorized foreign corporation, to such corpo-
ration at the address of its office within this state  on  file  in  the
department.]
  §  4.  Subparagraphs  2 and 3 of paragraph (a) of section 306-A of the
business corporation law, as added by chapter 469 of the laws  of  1997,
are amended to read as follows:
  (2)  That  the  address of the party has been designated by the corpo-
ration as the post office address to which [the secretary  of  state]  A
PERSON shall mail a copy of any process served on the secretary of state
as  agent  for  such corporation, SPECIFYING SUCH ADDRESS, and that such
party wishes to resign.
  (3) That AT LEAST sixty days prior to the filing of the certificate of
resignation FOR RECEIPT OF PROCESS with  the  department  of  state  the
party  has  sent a copy of the certificate of resignation for receipt of
process by registered or certified mail to the address of the registered
agent of the designating corporation, if other than the party filing the
certificate of resignation[,] for receipt of process, or if the [resign-
ing] DESIGNATING corporation has no registered agent, then to  the  last
address  of  the  designating corporation known to the party, specifying
the address to which the copy was sent. If there is no registered  agent
and  no  known  address  of the designating corporation, the party shall
attach an affidavit to the  certificate  stating  that  a  diligent  but
unsuccessful  search  was  made  by the party to locate the corporation,
specifying what efforts were made.
  § 5. Subparagraph 7 of paragraph (a) of section 402  of  the  business
corporation law is amended to read as follows:
  (7)  A  designation  of  the secretary of state as agent of the corpo-
ration upon whom process against it may be served and  the  post  office
address, within or without this state, to which [the secretary of state]
A  PERSON  shall mail a copy of any process against it served upon [him]
THE SECRETARY OF STATE.
  § 6. Subparagraph (c) of paragraph 1 of section 408  of  the  business
corporation  law, as amended by section 3 of part S of chapter 59 of the
laws of 2015, is amended to read as follows:
  (c) The post office address, within or without this  state,  to  which
[the  secretary  of  state]  A  PERSON  shall mail a copy of any process
against it served upon [him or  her]  THE  SECRETARY  OF  STATE.    Such
address shall supersede any previous address on file with the department
of state for this purpose.
  §  7.  Subparagraph  4 of paragraph (b) of section 801 of the business
corporation law is amended to read as follows:

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  (4) To specify or change the post office address to which [the  secre-
tary  of  state]  A  PERSON shall mail a copy of any process against the
corporation served upon [him] THE SECRETARY OF STATE.
  §  8.  Subparagraph  2 of paragraph (b) of section 803 of the business
corporation law, as amended by chapter 803  of  the  laws  of  1965,  is
amended to read as follows:
  (2) To  specify or change the post office address to which [the secre-
tary of state] A PERSON shall mail a copy of  any  process  against  the
corporation served upon [him] THE SECRETARY OF STATE.
  §  9.  Paragraph (b) of section 805-A of the business corporation law,
as added by chapter 725 of the laws of  1964,  is  amended  to  read  as
follows:
  (b) A certificate of change which changes only the post office address
to  which  [the  secretary  of  state] A PERSON shall mail a copy of any
process against a corporation served upon  [him  or]  THE  SECRETARY  OF
STATE  AND/OR the address of the registered agent, provided such address
being changed is the address of a person, partnership, LIMITED LIABILITY
COMPANY or other corporation whose address, as agent, is the address  to
be  changed  or  who  has  been  designated as registered agent for such
corporation, may be signed[, verified] and delivered to  the  department
of  state  by  such agent. The certificate of change shall set forth the
statements required under subparagraphs [(a)] (1), (2) and (3) OF  PARA-
GRAPH  (A)  of  this  section;  that a notice of the proposed change was
mailed to the corporation by the party signing the certificate not  less
than  thirty  days  prior  to the date of delivery to the department and
that such corporation has not objected thereto; and that the party sign-
ing the certificate is the agent of such corporation  to  whose  address
[the  secretary of state] A PERSON is required to mail copies of process
SERVED ON THE SECRETARY OF STATE or the registered agent, if such be the
case. A certificate signed[, verified] and delivered  under  this  para-
graph  shall  not be deemed to effect a change of location of the office
of the corporation in whose behalf such certificate is filed.
  § 10. Subparagraph 8 of paragraph (a) of section 904-a of the business
corporation law, as amended by chapter 177  of  the  laws  of  2008,  is
amended to read as follows:
  (8)  If  the surviving or resulting entity is a foreign corporation or
other business entity, a designation of the secretary of  state  as  its
agent upon whom process against it may be served in the manner set forth
in  paragraph  (b)  of section three hundred six of this chapter, in any
action or special proceeding, and a post office address, within or with-
out this state, to which [the secretary of state] A PERSON shall mail  a
copy of any process against it served upon [him] THE SECRETARY OF STATE.
Such post office address shall supersede any prior address designated as
the address to which process shall be mailed;
  §  11. Clause (G) of subparagraph 2 of paragraph (e) of section 907 of
the business corporation law, as amended by chapter 494 of the  laws  of
1997, is amended to read as follows:
  (G)  A  designation  of  the secretary of state as its agent upon whom
process against it may be served in the manner set  forth  in  paragraph
(b)  of  section  306  (Service  of  process),  in any action or special
proceeding, and a post office address, within or without this state,  to
which [the secretary of state] A PERSON shall mail a copy of any process
against  it  served  upon [him] THE SECRETARY OF STATE. Such post office
address shall supersede any prior address designated as the  address  to
which process shall be mailed.

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  §  12. Subparagraph 6 of paragraph (a) of section 1304 of the business
corporation law, as amended by chapter 684 of the laws of  1963  and  as
renumbered  by  chapter  590  of the laws of 1982, is amended to read as
follows:
  (6)  A  designation  of  the secretary of state as its agent upon whom
process against it may be served and the post office address, within  or
without  this  state,  to  which [the secretary of state] A PERSON shall
mail a copy of any process against it served upon [him] THE SECRETARY OF
STATE.
  § 13. Subparagraph 7 of paragraph (a) of section 1308 of the  business
corporation  law,  as  amended by chapter 725 of the laws of 1964 and as
renumbered by chapter 186 of the laws of 1983, is  amended  to  read  as
follows:
  (7)  To specify or change the post office address to which [the secre-
tary of state] A PERSON shall mail a copy  of  any  process  against  it
served upon [him] THE SECRETARY OF STATE.
  §  14.  Subparagraph  2  of paragraph (a) and paragraph (c) of section
1309-A of the business corporation law, subparagraph 2 of paragraph  (a)
as added by chapter 725 of the laws of 1964 and paragraph (c) as amended
by chapter 172 of the laws of 1999, are amended to read as follows:
  (2)  To specify or change the post office address to which [the secre-
tary of state] A PERSON shall mail a copy  of  any  process  against  it
served upon [him] THE SECRETARY OF STATE.
  (c) A certificate of change of application for authority which changes
only  the post office address to which [the secretary of state] A PERSON
shall mail a copy of any process against an  authorized  foreign  corpo-
ration  served upon [him or which] THE SECRETARY OF STATE AND/OR changes
the address of its  registered  agent,  provided  such  address  is  the
address  of  a  person,  partnership, LIMITED LIABILITY COMPANY or other
corporation whose address, as agent, is the address to be changed or who
has been designated as registered  agent  for  such  authorized  foreign
corporation,  may  be signed and delivered to the department of state by
such agent. The certificate of change of application for authority shall
set forth the statements required under subparagraphs (1), (2), (3)  and
(4)  of  paragraph  (b)  of  this section; that a notice of the proposed
change was mailed by the party signing the certificate to the authorized
foreign corporation not less than thirty  days  prior  to  the  date  of
delivery  to  the  department and that such corporation has not objected
thereto; and that the party signing the certificate is the agent of such
foreign corporation to whose address [the secretary of state]  A  PERSON
is  required  to mail copies of process SERVED ON THE SECRETARY OF STATE
or the registered agent, if such be the case. A certificate  signed  and
delivered under this paragraph shall not be deemed to effect a change of
location  of  the office of the corporation in whose behalf such certif-
icate is filed.
  § 15. Subparagraphs 1 and 6 of paragraph (a) of section  1310  of  the
business  corporation  law,  subparagraph 1 as amended by chapter 590 of
the laws of 1982, are amended to read as follows:
  (1) The name of the foreign corporation as it appears on the index  of
names  of  existing  domestic and authorized foreign corporations of any
type or kind in the department of state, division of corporations  [or,]
AND  the  fictitious  name, IF ANY, the corporation has agreed to use in
this state pursuant to paragraph (d) of section 1301 of  this  [chapter]
ARTICLE.

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  (6) A post office address, within or without this state, to which [the
secretary of state] A PERSON shall mail a copy of any process against it
served upon [him] THE SECRETARY OF STATE.
  §  16. Subparagraph 4 of paragraph (d) of section 1310 of the business
corporation law is amended to read as follows:
  (4) The changed post office address, within or without this state,  to
which [the secretary of state] A PERSON shall mail a copy of any process
against it served upon [him] THE SECRETARY OF STATE.
  §  17.  Section  1311  of  the business corporation law, as amended by
chapter 375 of the laws of 1998, is amended to read as follows:
§ 1311. Termination of existence.
  When an authorized foreign corporation is dissolved or  its  authority
or existence is otherwise terminated or cancelled in the jurisdiction of
its  incorporation  or  when  such foreign corporation is merged into or
consolidated with another foreign  corporation,  a  certificate  of  the
secretary of state, or official performing the equivalent function as to
corporate  records, of the jurisdiction of incorporation of such foreign
corporation attesting to the occurrence of any such event or a certified
copy of an order or decree of a court of such jurisdiction directing the
dissolution of such foreign corporation, the termination of  its  exist-
ence  or  the  cancellation  of  its authority shall be delivered to the
department of state. The filing of  the  certificate,  order  or  decree
shall  have  the same effect as the filing of a certificate of surrender
of authority under section 1310 (Surrender of authority). The  secretary
of  state  shall  continue as agent of the foreign corporation upon whom
process against it may be served in the manner set  forth  in  paragraph
(b)  of  section  306  (Service  of  process),  in any action or special
proceeding based upon  any  liability  or  obligation  incurred  by  the
foreign  corporation  within  this  state  prior  to  the filing of such
certificate, order or decree and [he] THE PERSON  SERVING  SUCH  PROCESS
shall  [promptly  cause  a  copy  of  any  such] SEND THE process [to be
mailed] by [registered] CERTIFIED mail,  return  receipt  requested,  to
such foreign corporation at the post office address on file in [his] THE
office  OF  THE  SECRETARY OF STATE specified for such purpose AND SHALL
PROVIDE THE SECRETARY OF STATE WITH PROOF OF SUCH MAILING IN THE  MANNER
SET  FORTH  IN  PARAGRAPH  (B) OF SECTION 306 (SERVICE OF PROCESS).  The
post office address may be changed by  signing  and  delivering  to  the
department of state a certificate of change setting forth the statements
required  under  section  1309-A  (Certificate  of  change; contents) to
effect a change in the post office address under subparagraph  SEVEN  OF
PARAGRAPH (a) [(4)] of section 1308 (Amendments or changes).
  §  18. Subparagraph 6 of paragraph (a) of section 1530 of the business
corporation law, as added by chapter 505 of the laws of 1983, is amended
to read as follows:
  (6) A designation of the secretary of state as  its  agent  upon  whom
process  against it may be served and the post office address, within or
without this state, to which [the secretary of  state]  A  PERSON  shall
mail a copy of any process against it served upon [him] THE SECRETARY OF
STATE.
  §  19.  Subdivision  10  of section 11 of the cooperative corporations
law, as added by chapter 97 of the laws of 1969, is amended to  read  as
follows:
  10. A  designation  of  the  secretary of state as agent of the corpo-
ration upon whom process against it may be served and  the  post  office
address, within or without this state, to which [the secretary of state]

S. 7508                            75                            A. 9508

A  PERSON  shall mail a copy of any process against it served upon [him]
THE SECRETARY OF STATE.
  § 20. Subdivision 10 of section 96 of the executive law, as amended by
chapter 39 of the laws of 1987, is amended to read as follows:
  10.  For service of process on the secretary of state, acting as agent
for a third party pursuant to  law,  except  as  otherwise  specifically
provided  by  law,  forty dollars. No fee shall be collected for process
served on behalf of [a] ANY STATE OFFICIAL, DEPARTMENT,  BOARD,  AGENCY,
AUTHORITY,  county, city, town or village or other political subdivision
of the state. The fees paid the secretary of state shall  be  a  taxable
disbursement.
  §  21.  The  opening  paragraph  of subdivision 2 and subdivision 3 of
section 18 of the general associations law, as amended by chapter 13  of
the laws of 1938, are amended and two new subdivisions 5 and 6 are added
to read as follows:
  Every  association  doing business within this state shall file in the
department of state a certificate in its  associate  name,  signed  [and
acknowledged]  by  its  president, or a vice-president, or secretary, or
treasurer, or managing director, or trustee, designating  the  secretary
of  state  as  an  agent  upon  whom process in any action or proceeding
against the association may be served within  this  state,  and  setting
forth an address to which [the secretary of state] A PERSON shall mail a
copy  of  any  process  against the association which may be served upon
[him] THE SECRETARY OF STATE pursuant to law.   Annexed to  the  certif-
icate  of  designation shall be a statement, executed in the same manner
as the certificate is required to be executed under this section,  which
shall set forth:
  3.    Any  association,  from  time to time, may change the address to
which [the secretary of state] A PERSON is directed to  mail  copies  of
process  SERVED ON THE SECRETARY OF STATE, by filing a statement to that
effect, executed[,] AND signed [and acknowledged] in like  manner  as  a
certificate of designation as herein provided.
  5.   ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY OF
STATE AS AGENT IN ANY ACTION OR PROCEEDING AGAINST THE  ASSOCIATION  FOR
THE  PURPOSE OF MAILING PROCESS SHALL BE THE POST OFFICE ADDRESS, WITHIN
OR WITHOUT THE STATE, TO WHICH A PERSON SHALL MAIL PROCESS AGAINST  SUCH
ASSOCIATION  AS  REQUIRED  BY  THIS ARTICLE. SUCH ADDRESS SHALL CONTINUE
UNTIL THE FILING OF A CERTIFICATE UNDER THIS CHAPTER DIRECTING THE MAIL-
ING TO A DIFFERENT POST OFFICE ADDRESS.
  6. "PROCESS" MEANS JUDICIAL PROCESS AND ALL ORDERS,  DEMANDS,  NOTICES
OR  OTHER PAPERS REQUIRED OR PERMITTED BY LAW TO BE PERSONALLY SERVED ON
AN ASSOCIATION, FOR THE PURPOSE OF ACQUIRING JURISDICTION OF SUCH  ASSO-
CIATION  IN  ANY  ACTION OR PROCEEDING, CIVIL OR CRIMINAL, WHETHER JUDI-
CIAL, ADMINISTRATIVE, ARBITRATIVE OR OTHERWISE, IN THIS STATE OR IN  THE
FEDERAL COURTS SITTING IN OR FOR THIS STATE.
  §  22. Section 19 of the general associations law, as amended by chap-
ter 166 of the laws of 1991, is amended to read as follows:
  § 19.  Service of process. 1. Service of process  against  an  associ-
ation  upon  the secretary of state shall be made by MAILING THE PROCESS
AND  NOTICE  OF  SERVICE  THEREOF  BY  CERTIFIED  MAIL,  RETURN  RECEIPT
REQUESTED,  TO  SUCH  CORPORATION  OR OTHER BUSINESS ENTITY, AT THE POST
OFFICE ADDRESS ON FILE IN THE DEPARTMENT OF  STATE  SPECIFIED  FOR  THIS
PURPOSE.  ON  THE SAME DAY THAT SUCH PROCESS IS MAILED, A DUPLICATE COPY
OF SUCH PROCESS AND PROOF OF MAILING SHALL  BE  personally  [delivering]
DELIVERED  to  and [leaving] LEFT with [him] THE SECRETARY OF STATE or a
deputy [secretary of state or an associate attorney, senior attorney  or

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attorney  in the corporation division of the department of state, dupli-
cate copies of such process at the office of the department of state  in
the  city  of  Albany]  SO  DESIGNATED.  At the time of such service the
plaintiff  shall  pay  a fee of forty dollars to the secretary of state,
which shall be a taxable disbursement. [If the cost of  registered  mail
for  transmitting  a  copy  of  the process shall exceed two dollars, an
additional fee equal to such excess shall be paid at  the  time  of  the
service  of such process. The secretary of state shall forthwith send by
registered mail one of such copies to the  association  at  the  address
fixed for that purpose, as herein provided.]
  2.  PROOF  OF  MAILING  SHALL  BE BY AFFIDAVIT OF COMPLIANCE WITH THIS
SECTION. SERVICE OF PROCESS ON SUCH ASSOCIATION SHALL BE  COMPLETE  WHEN
THE  SECRETARY  OF  STATE  IS  SO SERVED. If the action or proceeding is
instituted in a court of limited jurisdiction, service of process may be
made in the manner provided in this section if the cause of action arose
within the territorial jurisdiction of the court and the office  of  the
defendant, as set forth in its statement filed pursuant to section eigh-
teen of this [chapter] ARTICLE, is within such territorial jurisdiction.
  §  23.  Subdivision 2 of section 352-b of the general business law, as
amended by chapter 252 of the laws  of  1983,  is  amended  to  read  as
follows:
  2.  Service  of such process upon the secretary of state shall be made
by personally delivering to and leaving with [him or] THE  SECRETARY  OF
STATE,  a  deputy secretary of state, OR WITH A PERSON AUTHORIZED BY THE
SECRETARY OF STATE TO RECEIVE SUCH SERVICE, a copy thereof at the office
of the department of state in the city of Albany, and such service shall
be sufficient service provided that notice of such service and a copy of
such process are forthwith sent by the attorney general to such  person,
partnership,  corporation,  company, trust or association, by registered
or certified mail with return receipt requested, at  [his  or  its]  THE
office  as  set  forth  in  the "broker-dealer's statement", "salesman's
statement" or "investment advisor's statement" filed in  the  department
of  law  pursuant to section three hundred fifty-nine-e or section three
hundred fifty-nine-eee of this article, or in default of the  filing  of
such  statement,  at  the  last  address  known to the attorney general.
Service of such process shall be complete on  receipt  by  the  attorney
general  of a return receipt purporting to be signed by the addressee or
a person qualified to receive [his or its] registered or certified mail,
in accordance with the rules and customs of the post office  department,
or,  if  acceptance  was  refused by the addressee or [his or its] THEIR
agent, on return to the attorney general of the original envelope  bear-
ing  a  notation  by  the  postal  authorities  that receipt thereof was
refused.
  § 24. Section 686 of the general business law, as added by chapter 730
of the laws of 1980, is amended to read as follows:
  § 686. Designation of secretary of state as agent for service of proc-
ess; service of process. Any person who shall offer to sell  or  sell  a
franchise  in  this  state  as  a franchisor, subfranchisor or franchise
sales agent shall be deemed to have irrevocably appointed the  secretary
of  state as his or [its] HER agent upon whom may be served any summons,
complaint, subpoena, subpoena duces tecum, notice, order or other  proc-
ess  directed to such person, or any partner, principal, officer, sales-
man or director thereof, or his or [its] HER successor, administrator or
executor, in any action, investigation, or proceeding which arises under
this article or a rule hereunder, with the same force and validity as if
served personally on such person.  Service  of  such  process  upon  the

S. 7508                            77                            A. 9508

secretary of state shall be made by personally delivering to and leaving
with  [him  or]  THE SECRETARY OF STATE, a deputy secretary of state, OR
WITH ANY PERSON AUTHORIZED BY THE SECRETARY OF  STATE  TO  RECEIVE  SUCH
SERVICE,  a  copy  thereof at the office of the department of state, and
such service shall be sufficient provided that notice  of  such  service
and  a copy of such process are sent forthwith by the department to such
person, by registered or certified mail with return  receipt  requested,
at  [his] THE address [as] set forth in the application for registration
of his OR HER offering prospectus or in the registered offering prospec-
tus itself filed with the department of law pursuant to this article, or
in default of the filing of such application or prospectus, at the  last
address  known  to  the  department.  Service  of  such process shall be
complete upon receipt by the department of a return  receipt  purporting
to  be  signed by the addressee or a person qualified to receive [his or
its] registered or certified mail, in  accordance  with  the  rules  and
customs  of the post office department, or, if acceptance was refused or
unclaimed by the addressee or his or [its] HER agent, or if the address-
ee moved without leaving  a  forwarding  address,  upon  return  to  the
department  of  the  original  envelope bearing a notation by the postal
authorities that receipt thereof was  refused  or  that  such  mail  was
otherwise undeliverable.
  §  25.  Paragraph  4  of subdivision (e) of section 203 of the limited
liability company law, as added by chapter 470 of the laws of  1997,  is
amended to read as follows:
  (4)  a  designation  of the secretary of state as agent of the limited
liability company upon whom process against it may  be  served  and  the
post  office address, within or without this state, to which [the secre-
tary of state] A PERSON shall mail a copy of  any  process  against  the
limited  liability  company  served  upon  [him or her] THE SECRETARY OF
STATE;
  § 26. Paragraph 4 of subdivision (a) of section  206  of  the  limited
liability  company law, as amended by chapter 44 of the laws of 2006, is
amended to read as follows:
  (4) a statement that the secretary of state  has  been  designated  as
agent  of the limited liability company upon whom process against it may
be served and the post office address, within or without this state,  to
which [the secretary of state] A PERSON shall mail a copy of any process
against it served upon [him or her] THE SECRETARY OF STATE;
  §  27.  Paragraph  6  of subdivision (d) of section 211 of the limited
liability company law is amended to read as follows:
  (6) a change in the post office address to  which  [the  secretary  of
state]  A  PERSON  shall  mail a copy of any process against the limited
liability company served upon [him or her] THE  SECRETARY  OF  STATE  if
such  change is made other than pursuant to section three hundred one of
this chapter;
  § 28. Section 211-A of the limited liability company law, as added  by
chapter 448 of the laws of 1998, is amended to read as follows:
  §  211-A.  Certificate  of change. (a) A limited liability company may
amend its articles of organization from time to time to (i)  specify  or
change  the  location  of  the  limited liability company's office; (ii)
specify or change the post office address to  which  [the  secretary  of
state]  A  PERSON  shall  mail a copy of any process against the limited
liability company served upon [him] THE SECRETARY OF  STATE;  and  (iii)
make, revoke or change the designation of a registered agent, or specify
or  change  the  address  of  the registered agent. Any one or more such
changes may be accomplished by filing  a  certificate  of  change  which

S. 7508                            78                            A. 9508

shall  be  entitled  "Certificate  of Change of ....... (name of limited
liability company) under section 211-A of the Limited Liability  Company
Law"  and  shall  be signed and delivered to the department of state. It
shall set forth:
  (1)  the  name  of  the  limited liability company, and if it has been
changed, the name under which it was formed;
  (2) the date the articles of organization were filed by the department
of state; and
  (3) each change effected thereby.
  (b) A certificate of change which changes only the post office address
to which [the secretary of state] A PERSON shall  mail  a  copy  of  any
process  against  a  limited  liability company served upon [him or] THE
SECRETARY OF STATE AND/OR the address of the registered agent,  provided
such  address  being  changed  is  the address of a person, partnership,
LIMITED LIABILITY COMPANY or corporation whose address, as agent, is the
address to be changed or who has been designated as registered agent for
such limited liability company  may  be  signed  and  delivered  to  the
department  of  state by such agent. The certificate of change shall set
forth the statements required under subdivision  (a)  of  this  section;
that  a notice of the proposed change was mailed to the domestic limited
liability company by the party signing the  certificate  not  less  than
thirty days prior to the date of delivery to the department of state and
that  such  domestic limited liability company has not objected thereto;
and that the party signing the certificate is the agent of such  limited
liability  company to whose address [the secretary of state] A PERSON is
required to mail copies of process SERVED ON THE SECRETARY OF  STATE  or
the  registered  agent,  if  such  be the case. A certificate signed and
delivered under this subdivision shall not be deemed to effect a  change
of  location  of  the  office  of the limited liability company in whose
behalf such certificate is filed.
  § 29. Paragraph 2 of subdivision (b) of section  213  of  the  limited
liability company law is amended to read as follows:
  (2)  to  change  the  post  office  address to which [the secretary of
state] A PERSON shall mail a copy of any  process  against  the  limited
liability company served upon [him or her] THE SECRETARY OF STATE; and
  § 30. Subdivisions (c) and (e) of section 301 of the limited liability
company  law, subdivision (e) as amended by section 5 of part S of chap-
ter 59 of the laws of 2015, are amended to read as follows:
  (c) ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY  OF
STATE AS AGENT OF A DOMESTIC LIMITED LIABILITY COMPANY OR FOREIGN LIMIT-
ED  LIABILITY  COMPANY  FOR  THE PURPOSE OF MAILING PROCESS SHALL BE THE
POST OFFICE ADDRESS, WITHIN OR WITHOUT THE  STATE,  TO  WHICH  A  PERSON
SHALL MAIL PROCESS AGAINST SUCH LIMITED LIABILITY COMPANY AS REQUIRED BY
THIS  ARTICLE. Any designated post office address to which the secretary
of state OR A PERSON shall mail a copy of process served  upon  [him  or
her]  THE  SECRETARY  OF  STATE as agent of a domestic limited liability
company or a foreign limited liability company shall continue until  the
filing  of  a  certificate under this chapter directing the mailing to a
different post office address.
  [(e)] (D) (1) Except as otherwise provided in this subdivision,  every
limited liability company to which this chapter applies, shall biennial-
ly  in  the  calendar month during which its articles of organization or
application for authority were filed, or effective date thereof if stat-
ed, file on forms prescribed by the  secretary  of  state,  a  statement
setting  forth  the  post office address within or without this state to
which [the secretary of state] A PERSON shall mail a copy of any process

S. 7508                            79                            A. 9508

accepted against it served upon [him or her]  THE  SECRETARY  OF  STATE.
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
statements  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 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.
  § 31. Paragraphs 2 and 3 of  subdivision  (a),  subparagraph  (ii)  of
paragraph  2  and subparagraph (ii) of paragraph 3 of subdivision (e) of
section 301-A of the limited liability company law, as added by  chapter
448 of the laws of 1998, are amended to read as follows:
  (2)  that  the address of the party has been designated by the limited
liability company as the post office address to which [the secretary  of
state] A PERSON shall mail a copy of any process served on the secretary
of  state  as agent for such limited liability company, SUCH ADDRESS and
that such party wishes to resign.
  (3) that AT LEAST  sixty days prior to the filing of  the  certificate
of  resignation  FOR RECEIPT OF PROCESS with the department of state the
party has sent a copy of the certificate of resignation for  receipt  of
process by registered or certified mail to the address of the registered
agent  of  the  designated  limited liability company, if other than the
party filing the certificate of resignation[,] for receipt  of  process,
or  if  the  [resigning]  DESIGNATING  limited  liability company has no
registered agent, then to the last address  of  the  designated  limited
liability  company  known  to the party, specifying the address to which
the copy was sent. If there is no registered agent and no known  address
of  the designating limited liability company, the party shall attach an
affidavit to the certificate stating that a  diligent  but  unsuccessful

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search  was  made  by the party to locate the limited liability company,
specifying what efforts were made.
  (ii)  sent  by or on behalf of the plaintiff to such limited LIABILITY
company by registered or certified mail with return receipt requested to
the last address of such limited liability company known to  the  plain-
tiff.
  (ii)  Where  service  of  a copy of process was effected by mailing in
accordance with this section, proof of service shall be by affidavit  of
compliance  with  this  section filed, together with the process, within
thirty days after receipt of the return receipt signed  by  the  limited
liability company or other official proof of delivery or of the original
envelope  mailed.  If a copy of the process is mailed in accordance with
this section, there shall be filed  with  the  affidavit  of  compliance
either  the  return  receipt signed by such limited LIABILITY company or
other official proof of delivery, if acceptance was refused by  it,  the
original envelope with a notation by the postal authorities that accept-
ance  was  refused.  If  acceptance was refused a copy of the notice and
process together with notice of the mailing by registered  or  certified
mail  and  refusal  to  accept  shall  be  promptly sent to such limited
liability company at the same address by ordinary mail and the affidavit
of compliance shall so state. Service of process shall be  complete  ten
days  after  such  papers  are  filed  with  the clerk of the court. The
refusal to accept delivery of the registered or  certified  mail  or  to
sign the return receipt shall not affect the validity of the service and
such  limited  liability  company  refusing to accept such registered or
certified mail shall be charged with knowledge of the contents thereof.
  § 32. Subdivision (a) of section 303 of the limited liability  company
law,  as  relettered  by  chapter 341 of the laws of 1999, is amended to
read as follows:
  (a) Service of process on the secretary of state as agent of a  domes-
tic limited liability company [or], authorized foreign limited liability
company,  OR  OTHER BUSINESS ENTITY THAT HAS DESIGNATED THE SECRETARY OF
STATE AS AGENT FOR SERVICE OF PROCESS PURSUANT TO ARTICLE  TEN  OF  THIS
CHAPTER,  SHALL  BE  MADE  BY  MAILING THE PROCESS AND NOTICE OF SERVICE
THEREOF BY CERTIFIED MAIL, RETURN RECEIPT  REQUESTED,  TO  SUCH  LIMITED
LIABILITY  COMPANY  OR OTHER BUSINESS ENTITY, AT THE POST OFFICE ADDRESS
ON FILE IN THE DEPARTMENT OF STATE SPECIFIED FOR THIS  PURPOSE.  ON  THE
SAME DAY AS SUCH PROCESS IS MAILED, A DUPLICATE COPY OF SUCH PROCESS AND
PROOF OF MAILING shall be [made by] personally [delivering] DELIVERED to
and  [leaving] LEFT with the secretary of state or his or her deputy, or
with any person authorized by the secretary of  state  to  receive  such
service, at the office of the department of state in the city of Albany,
[duplicate  copies  of  such  process]  together with the statutory fee,
which fee shall be a taxable disbursement.  PROOF OF MAILING SHALL BE BY
AFFIDAVIT OF COMPLIANCE WITH THIS SECTION. Service of  process  on  such
limited  liability  company  OR  OTHER BUSINESS ENTITY shall be complete
when the secretary of state is so served. [The secretary of state  shall
promptly  send  one  of  such  copies  by certified mail, return receipt
requested, to such limited liability company at the post office  address
on file in the department of state specified for that purpose.]
  §  33.  Section 305 of the limited liability company law is amended to
read as follows:
  § 305. Records of process served on  the  secretary  of  state.    The
[secretary  of  state]  DEPARTMENT  OF STATE shall keep a record of each
process served upon the secretary of state under this chapter, including
the date of such service [and the action of the secretary of state  with

S. 7508                            81                            A. 9508

reference thereto]. IT SHALL, UPON REQUEST MADE WITHIN TEN YEARS OF SUCH
SERVICE, ISSUE A CERTIFICATE UNDER ITS SEAL CERTIFYING AS TO THE RECEIPT
OF  THE  PROCESS  BY  AN  AUTHORIZED  PERSON, THE DATE AND PLACE OF SUCH
SERVICE  AND  THE  RECEIPT OF THE STATUTORY FEE. PROCESS SERVED UPON THE
SECRETARY OF STATE UNDER THIS CHAPTER SHALL BE DESTROYED BY THE  DEPART-
MENT OF STATE AFTER A PERIOD OF TEN YEARS FROM SUCH SERVICE.
  §  34.  Paragraph  4  of subdivision (a) of section 802 of the limited
liability company law, as amended by chapter 470 of the laws of 1997, is
amended to read as follows:
  (4) a designation of the secretary of state as  its  agent  upon  whom
process  against it may be served and the post office address, within or
without this state, to which [the secretary of  state]  A  PERSON  shall
mail  a  copy  of  any  process  against it served upon [him or her] THE
SECRETARY OF STATE;
  § 35. Section 804-A of the limited liability company law, as added  by
chapter 448 of the laws of 1998, is amended to read as follows:
  § 804-A. Certificate of change. (a) A foreign limited liability compa-
ny  may  amend  its  application  for authority from time to time to (i)
specify or change  the  location  of  the  limited  liability  company's
office;  (ii)  specify  or  change the post office address to which [the
secretary of state] A PERSON shall mail a copy of  any  process  against
the  limited liability company served upon [him] THE SECRETARY OF STATE;
and (iii) to make, revoke or change  the  designation  of  a  registered
agent,  or  to  specify or change the address of a registered agent. Any
one or more such changes may be accomplished by filing a certificate  of
change  which shall be entitled "Certificate of Change of ........ (name
of limited liability company) under section 804-A of the Limited Liabil-
ity Company Law" and shall be signed and delivered to the department  of
state. It shall set forth:
  (1) the name of the foreign limited liability company and, if applica-
ble, the fictitious name the limited liability company has agreed to use
in this state pursuant to section eight hundred two of this article;
  (2) the date its application for authority was filed by the department
of state; and
  (3) each change effected thereby[,].
  (b) A certificate of change which changes only the post office address
to  which  [the  secretary  of  state] A PERSON shall mail a copy of any
process against a foreign limited liability company served upon [him or]
THE SECRETARY OF STATE AND/OR  the  address  of  the  registered  agent,
provided such address being changed is the address of a person, partner-
ship [or], corporation OR OTHER LIMITED LIABILITY COMPANY whose address,
as  agent,  is  the address to be  changed or who has been designated as
registered agent for such limited liability company may  be  signed  and
delivered  to  the department of state by such agent. The certificate of
change shall set forth the statements required under subdivision (a)  of
this  section;  that  a  notice of the proposed change was mailed to the
foreign limited liability company by the party signing  the  certificate
not  less  than thirty days prior to the date of delivery to the depart-
ment of state and that such foreign limited liability  company  has  not
objected  thereto;  and  that  the  party signing the certificate is the
agent of such foreign limited liability company to  whose  address  [the
secretary  of  state]  A  PERSON  is  required to mail copies of process
SERVED ON THE SECRETARY OF STATE or the registered agent, if such be the
case. A certificate signed and delivered under  this  subdivision  shall
not  be  deemed  to  effect  a  change  of location of the office of the

S. 7508                            82                            A. 9508

foreign limited liability company in whose behalf  such  certificate  is
filed.
  §  36.  Paragraph  6  of subdivision (b) of section 806 of the limited
liability company law is amended to read as follows:
  (6) a post office address, within or without this state, to which [the
secretary of state] A PERSON shall mail a copy of any process against it
served upon [him or her] THE SECRETARY OF STATE.
  § 37. Paragraph 11 of subdivision (a) of section 1003 of  the  limited
liability company law, as amended by chapter 374 of the laws of 1998, is
amended to read as follows:
  (11)  a  designation  of the secretary of state as its agent upon whom
process against it may be served in the  manner  set  forth  in  article
three  of  this  chapter in any action or special proceeding, and a post
office address, within or without this state, to which [the secretary of
state] A PERSON shall mail a copy of any process  served  upon  [him  or
her]  THE  SECRETARY  OF STATE. Such post office address shall supersede
any prior address designated as the address to which  process  shall  be
mailed;
  §  38.  Clause  (iv) of subparagraph (A) of paragraph 2 of subdivision
(c) of section 1203 of the limited liability company law, as amended  by
chapter 44 of the laws of 2006, is amended to read as follows:
  (iv)  a  statement  that the secretary of state has been designated as
agent of the professional service limited liability  company  upon  whom
process  against it may be served and the post office address, within or
without this state, to which [the secretary of  state]  A  PERSON  shall
mail  a  copy  of  any  process  against it served upon [him or her] THE
SECRETARY OF STATE;
  § 39. Paragraph 6 of subdivision (a) and subparagraph 5  of  paragraph
(i)  of subdivision (d) of section 1306 of the limited liability company
law, subparagraph 5 of paragraph (i) of subdivision (d)  as  amended  by
chapter 44 of the laws of 2006, are amended to read as follows:
  (6)  a  designation  of  the secretary of state as its agent upon whom
process against it may be served and the post office address, within  or
without  this  state,  to  which [the secretary of state] A PERSON shall
mail a copy of any process against it  served  upon  [him  or  her]  THE
SECRETARY OF STATE; and
  (5)  a  statement  that  the secretary of state has been designated as
agent of the foreign professional service limited liability company upon
whom process against it may be served and the post office address, with-
in or without this state, to which [the secretary  of  state]  A  PERSON
shall mail a copy of any process against it served upon [him or her] THE
SECRETARY OF STATE;
  §  40.  Paragraph (d) of section 304 of the not-for-profit corporation
law, as amended by chapter 358 of the laws of 2015, is amended  to  read
as follows:
  (d)  ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY OF
STATE AS AGENT OF A DOMESTIC NOT-FOR-PROFIT CORPORATION OR FOREIGN  NOT-
FOR-PROFIT  CORPORATION  FOR THE PURPOSE OF MAILING PROCESS SHALL BE THE
POST OFFICE ADDRESS, WITHIN OR WITHOUT THE  STATE,  TO  WHICH  A  PERSON
SHALL MAIL PROCESS AGAINST SUCH CORPORATION AS REQUIRED BY THIS ARTICLE.
Any  designated [post-office] POST OFFICE address to which the secretary
of state OR A PERSON shall mail a copy of process served  upon  [him  or
her]  THE  SECRETARY  OF STATE as agent of a domestic corporation formed
under article four of this chapter or foreign corporation, shall contin-
ue until the filing of a certificate under this  chapter  directing  the
mailing to a different [post-office] POST OFFICE address.

S. 7508                            83                            A. 9508

  §  41.  Paragraph (a) of section 305 of the not-for-profit corporation
law, as amended by chapter 549 of the laws of 2013, is amended  to  read
as follows:
  (a)  Every  domestic corporation or authorized foreign corporation may
designate a registered agent in this state  upon  whom  process  against
such  corporation may be served. The agent shall be a natural person who
is a resident of or has a business address in this state or  a  domestic
corporation  or  foreign corporation of any kind formed[,] or authorized
to do business in this state[,] under this chapter or  under  any  other
statute  of  this  state,  OR  A DOMESTIC LIMITED LIABILITY COMPANY OR A
FOREIGN LIMITED LIABILITY COMPANY AUTHORIZED  TO  DO  BUSINESS  IN  THIS
STATE.
  §  42.  Paragraph (b) of section 306 of the not-for-profit corporation
law, as amended by chapter 23 of the laws of 2014, is amended to read as
follows:
  (b) Service of process on the secretary of state as agent of a  domes-
tic  corporation formed under article four of this chapter or an author-
ized foreign corporation shall be made by MAILING THE PROCESS AND NOTICE
OF SERVICE THEREOF BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO  SUCH
CORPORATION OR OTHER BUSINESS ENTITY, AT THE POST OFFICE ADDRESS ON FILE
IN  THE  DEPARTMENT OF STATE SPECIFIED FOR THIS PURPOSE. ON THE SAME DAY
THAT SUCH PROCESS IS MAILED, A DUPLICATE COPY OF SUCH PROCESS AND  PROOF
OF  MAILING  SHALL BE personally [delivering] DELIVERED to and [leaving]
LEFT with the secretary of state or his  or  her  deputy,  or  with  any
person  authorized by the secretary of state to receive such service, at
the office of the department of state in the city of Albany,  [duplicate
copies of such process] together with the statutory fee, which fee shall
be  a  taxable disbursement.   PROOF OF MAILING SHALL BE BY AFFIDAVIT OF
COMPLIANCE WITH THIS SECTION. Service of process on such corporation  OR
OTHER  BUSINESS  ENTITY shall be complete when the secretary of state is
so served.  [The secretary of state shall  promptly  send  one  of  such
copies by certified mail, return receipt requested, to such corporation,
at  the  post office address, on file in the department of state, speci-
fied for the purpose.] If a domestic corporation  formed  under  article
four  of  this  chapter or an authorized foreign corporation has no such
address on file in the department of  state,  the  [secretary  of  state
shall  so  mail  such]  DUPLICATE copy OF THE PROCESS SHALL BE MAILED to
such corporation at the address of its office within this state on  file
in the department.
  §  43.  Subparagraph 6 of paragraph (a) of section 402 of the not-for-
profit corporation law, as added by chapter 564 of the laws of 1981  and
as  renumbered by chapter 132 of the laws of 1985, is amended to read as
follows:
  (6) A designation of the secretary of state as  agent  of  the  corpo-
ration  upon  whom  process against it may be served and the post office
address, within or without this state, to which [the secretary of state]
A PERSON shall mail a copy of any process against it served  upon  [him]
THE SECRETARY OF STATE.
  §  44.  Subparagraph 7 of paragraph (b) of section 801 of the not-for-
profit corporation law, as amended by chapter 438 of the laws  of  1984,
is amended to read as follows:
  (7)  To specify or change the post office address to which [the secre-
tary of state] A PERSON shall mail a copy of  any  process  against  the
corporation served upon [him] THE SECRETARY OF STATE.

S. 7508                            84                            A. 9508

  §  45.  Subparagraph 2 of paragraph (c) of section 802 of the not-for-
profit corporation law, as amended by chapter 186 of the laws  of  1983,
is amended to read as follows:
  (2)  To specify or change the post office address to which [the secre-
tary of state] A PERSON shall mail a copy of  any  process  against  the
corporation served upon [him] THE SECRETARY OF STATE.
  §  46.  Subparagraph 6 of paragraph (a) of section 803 of the not-for-
profit corporation law, as amended by chapter 23 of the laws of 2014, is
amended to read as follows:
  (6) A designation of the secretary of state as  agent  of  the  corpo-
ration  upon  whom  process against it may be served and the post office
address,   within or without this state,  to  which  [the  secretary  of
state]  A PERSON shall mail a copy of any process against it served upon
the secretary OF STATE.
  § 47. Paragraph (b) of section 803-A of the not-for-profit corporation
law, as amended by chapter 172 of the laws of 1999, is amended  to  read
as follows:
  (b) A certificate of change which changes only the post office address
to  which  [the  secretary  of  state] A PERSON shall mail a copy of any
process against the corporation served upon [him or]  THE  SECRETARY  OF
STATE  AND/OR the address of the registered agent, provided such address
being changed is the address of a person, partnership, LIMITED LIABILITY
COMPANY or other corporation whose address, as agent, is the address  to
be  changed  or  who  has  been  designated as registered agent for such
corporation, may be signed and delivered to the department of  state  by
such  agent.  The  certificate  of change shall set forth the statements
required under subparagraphs (1), (2) and (3) of paragraph (a)  of  this
section;  that  a notice of the proposed change was mailed to the corpo-
ration by the party signing the certificate not less  than  thirty  days
prior  to  the  date  of delivery to the department and that such corpo-
ration has not objected thereto; and that the party signing the  certif-
icate  is  the agent of such corporation to whose address [the secretary
of state] A PERSON is required to mail copies of any process against the
corporation served upon [him] THE SECRETARY OF STATE or  the  registered
agent,  if  such  be  the case. A certificate signed and delivered under
this paragraph shall not be deemed to effect a change of location of the
office of the corporation in whose behalf such certificate is filed.
  § 48. Clause (E) of subparagraph 2 of paragraph (d) of section 906  of
the  not-for-profit  corporation  law, as amended by chapter 1058 of the
laws of 1971, is amended to read as follows:
  (E) A designation of the secretary of state as  its  agent  upon  whom
process  against  it  may be served in the manner set forth in paragraph
(b) of section 306 (Service  of  process),  in  any  action  or  special
proceeding  described  in [subparagraph] CLAUSE (D) OF THIS SUBPARAGRAPH
and a post office address, within or without this state, to  which  [the
secretary  of  state]  A PERSON shall mail a copy of the process in such
action or special proceeding SERVED UPON THE SECRETARY OF STATE.
  § 49. Clause (F) of subparagraph 2 of paragraph (d) of section 908  of
the not-for-profit corporation law is amended to read as follows:
  (F)  A  designation  of the secretary of state as [his] ITS agent upon
whom process against it may be served in the manner set forth  in  para-
graph  (b) of section 306 (Service of process), in any action or special
proceeding described in [subparagraph] CLAUSE (D) OF  THIS  SUBPARAGRAPH
and  a  post  office address, within or without the state, to which [the
secretary of state] A PERSON shall mail a copy of the  process  in  such
action or special proceeding SERVED UPON BY THE SECRETARY OF STATE.

S. 7508                            85                            A. 9508

  §  50. Subparagraph 6 of paragraph (a) of section 1304 of the not-for-
profit corporation law, as renumbered by chapter  590  of  the  laws  of
1982, is amended to read as follows:
  (6)  A  designation  of  the secretary of state as its agent upon whom
process against it may be served and the post office address, within  or
without  this  state,  to  which [the secretary of state] A PERSON shall
mail a copy of any process against it served upon [him] THE SECRETARY OF
STATE.
  § 51. Subparagraph 7 of paragraph (a) of section 1308 of the  not-for-
profit  corporation  law,  as  renumbered  by chapter 186 of the laws of
1983, is amended to read as follows:
  (7) To specify or change the post office address to which [the  secre-
tary  of  state]  A  PERSON  shall mail a copy of any process against it
served upon [him] THE SECRETARY OF STATE.
  § 52. Subparagraph 2 of paragraph (a) and  paragraph  (c)  of  section
1310  of the not-for-profit corporation law, paragraph (c) as amended by
chapter 172 of the laws of 1999, are amended to read as follows:
  (2) To specify or change the post office address to which [the  secre-
tary  of  state]  A  PERSON  shall mail a copy of any process against it
served upon [him] THE SECRETARY OF STATE.
  (c) A certificate of change of application for authority which changes
only the post office address to which [the secretary of state] A  PERSON
shall  mail  a  copy of any process against an authorized foreign corpo-
ration served upon [him or] THE SECRETARY OF STATE AND/OR which  changes
the  address  of  its  registered  agent,  provided  such address is the
address of a person, partnership, LIMITED  LIABILITY  COMPANY  or  other
corporation whose address, as agent, is the address to be changed or who
has  been  designated  as  registered  agent for such authorized foreign
corporation, may be signed and delivered to the department of  state  by
such agent. The certificate of change of application for authority shall
set  forth the statements required under subparagraphs (1), (2), (3) and
(4) of paragraph (b) of this section; that  a  notice  of  the  proposed
change was mailed by the party signing the certificate to the authorized
foreign  corporation  not  less  than  thirty  days prior to the date of
delivery to the department and that such corporation  has  not  objected
thereto; and that the party signing the certificate is the agent of such
foreign  corporation  to whose address [the secretary of state] A PERSON
is required to mail copies of process SERVED ON THE SECRETARY  OF  STATE
or  the  registered agent, if such be the case. A certificate signed and
delivered under this paragraph shall not be deemed to effect a change of
location of the office of the corporation in whose behalf  such  certif-
icate is filed.
  §  53. Subparagraph 6 of paragraph (a) and subparagraph 4 of paragraph
(d) of section 1311 of the not-for-profit corporation law are amended to
read as follows:
  (6) A post office address, within or without this state, to which [the
secretary of state] A PERSON shall mail a copy of any process against it
served upon [him] THE SECRETARY OF STATE.
  (4) The changed post office address, within or without this state,  to
which [the secretary of state] A PERSON shall mail a copy of any process
against it served upon [him] THE SECRETARY OF STATE.
  §  54.  Section 1312 of the not-for-profit corporation law, as amended
by chapter 375 of the laws of 1998, is amended to read as follows:
§ 1312. Termination of existence.
  When an authorized foreign corporation is dissolved or  its  authority
or existence is otherwise terminated or cancelled in the jurisdiction of

S. 7508                            86                            A. 9508

its  incorporation  or  when  such foreign corporation is merged into or
consolidated with another foreign  corporation,  a  certificate  of  the
secretary of state, or official performing the equivalent function as to
corporate  records, of the jurisdiction of incorporation of such foreign
corporation attesting to the occurrence of any such event or a certified
copy of an order or decree of a court of such jurisdiction directing the
dissolution of such foreign corporation, the termination of  its  exist-
ence  or  the  cancellation  of  its authority shall be delivered to the
department of state.  The filing of the  certificate,  order  or  decree
shall  have  the same effect as the filing of a certificate of surrender
of authority under section 1311 (Surrender of authority).  The secretary
of state shall continue as agent of the foreign  corporation  upon  whom
process  against  it  may be served in the manner set forth in paragraph
(b) of section 306 (Service  of  process),  in  any  action  or  special
proceeding  based  upon  any  liability  or  obligation  incurred by the
foreign corporation within this  state  prior  to  the  filing  of  such
certificate,  order  or  decree and [he] THE PERSON SERVING SUCH PROCESS
shall promptly cause a copy of any such process to be mailed by  [regis-
tered]  CERTIFIED mail, return receipt requested, to such foreign corpo-
ration at the post office address on  file  [in  his  office]  WITH  THE
DEPARTMENT  specified  for such purpose.  The post office address may be
changed by signing and delivering to the department of state  a  certif-
icate of change setting forth the statements required under section 1310
(Certificate  of change, contents) to effect a change in the post office
address under subparagraph [(a) (4)] (7) OF  PARAGRAPH  (A)  of  section
1308 (Amendments or changes).
  §  55.  Subdivision  (c) of section 121-104 of the partnership law, as
added by chapter 950 of the laws of 1990, is amended to read as follows:
  (c) ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY  OF
STATE  AS  AGENT  OF  A  DOMESTIC LIMITED PARTNERSHIP OR FOREIGN LIMITED
PARTNERSHIP FOR THE PURPOSE OF MAILING PROCESS SHALL BE THE POST  OFFICE
ADDRESS, WITHIN OR WITHOUT THE STATE, TO WHICH A PERSON SHALL MAIL PROC-
ESS  AGAINST  SUCH  LIMITED PARTNERSHIP AS REQUIRED BY THIS ARTICLE. Any
designated post office address to which the  secretary  of  state  OR  A
PERSON  shall  mail a copy of process served upon [him] THE SECRETARY OF
STATE as agent of a domestic  limited  partnership  or  foreign  limited
partnership  shall continue until the filing of a certificate under this
article directing the mailing to a different post office address.
  § 56. Paragraphs 1, 2 and 3 of subdivision (a) of section 121-104-A of
the partnership law, as added by chapter 448 of the laws  of  1998,  are
amended to read as follows:
  (1)  the  name of the limited partnership and the date that its [arti-
cles of organization] CERTIFICATE OF LIMITED PARTNERSHIP or  application
for authority was filed by the department of state.
  (2)  that  the address of the party has been designated by the limited
partnership as the post office address to which [the secretary of state]
A PERSON shall mail a copy of any process served  on  the  secretary  of
state  as agent for such limited partnership, and that such party wishes
to resign.
  (3) that AT LEAST sixty days prior to the filing of the certificate of
resignation FOR RECEIPT OF PROCESS with  the  department  of  state  the
party  has  sent a copy of the certificate of resignation for receipt of
process by registered or certified mail to the address of the registered
agent of the [designated] DESIGNATING limited partnership, if other than
the party filing the certificate of resignation[,] for receipt of  proc-
ess, or if the [resigning] DESIGNATING limited partnership has no regis-

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tered  agent,  then  to the last address of the [designated] DESIGNATING
limited partnership, known to the party, specifying the address to which
the copy was sent. If there is no registered agent and no known  address
of the designating limited partnership the party shall attach an affida-
vit  to  the certificate stating that a diligent but unsuccessful search
was made by the party to locate the limited partnership, specifying what
efforts were made.
  § 57. Subdivision (a) of section 121-105 of the  partnership  law,  as
added by chapter 950 of the laws of 1990, is amended to read as follows:
  (a)  In  addition  to  the designation of the secretary of state, each
limited partnership or authorized foreign limited partnership may desig-
nate a registered agent upon whom process against the  limited  partner-
ship  may  be  served.  The  agent must be (i) a natural person who is a
resident of this state or has a business address  in  this  state,  [or]
(ii)  a  domestic  corporation or a foreign corporation authorized to do
business in this state, OR (III) A DOMESTIC LIMITED LIABILITY COMPANY OR
A FOREIGN LIMITED LIABILITY COMPANY AUTHORIZED TO DO  BUSINESS  IN  THIS
STATE.
  §  58.  Subdivisions (a) and (c) of section 121-109 of the partnership
law, as added by chapter 950 of the laws of 1990 and  as  relettered  by
chapter 341 of the laws of 1999, are amended to read as follows:
  (a)  Service of process on the secretary of state as agent of a domes-
tic or authorized foreign limited partnership, OR OTHER BUSINESS  ENTITY
THAT HAS DESIGNATED THE SECRETARY OF STATE AS AGENT FOR SERVICE OF PROC-
ESS PURSUANT TO THIS CHAPTER, shall be made [as follows:
  (1) By] BY MAILING THE PROCESS AND NOTICE OF SERVICE OF PROCESS PURSU-
ANT TO THIS SECTION BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO SUCH
DOMESTIC  OR  AUTHORIZED  FOREIGN  LIMITED PARTNERSHIP OR OTHER BUSINESS
ENTITY, AT THE POST OFFICE ADDRESS ON FILE IN THE  DEPARTMENT  OF  STATE
SPECIFIED  FOR THIS PURPOSE. ON THE SAME DAY AS THE PROCESS IS MAILED, A
DUPLICATE COPY OF SUCH PROCESS AND PROOF OF MAILING SHALL BE  personally
[delivering]  DELIVERED  to  and  [leaving]  LEFT  with [him or his] THE
SECRETARY OF STATE OR A deputy, or with any  person  authorized  by  the
secretary of state to receive such service, at the office of the depart-
ment  of state in the city of Albany, [duplicate copies of such process]
together with the statutory fee, which fee shall be a taxable  disburse-
ment.  PROOF  OF  MAILING  SHALL BE BY AFFIDAVIT OF COMPLIANCE WITH THIS
SECTION. SERVICE OF PROCESS ON SUCH LIMITED PARTNERSHIP OR  OTHER  BUSI-
NESS ENTITY SHALL BE COMPLETE WHEN THE SECRETARY OF STATE IS SO SERVED.
  [(2)  The  service  on  the  limited  partnership is complete when the
secretary of state is so served.
  (3) The secretary of state shall promptly send one of such  copies  by
certified mail, return receipt requested, addressed to the limited part-
nership  at the post office address, on file in the department of state,
specified for that purpose.]
  (c) The [secretary of state] DEPARTMENT OF STATE shall keep  a  record
of  all process served upon [him] IT under this section and shall record
therein the date of such service [and his action with  reference  there-
to]. IT SHALL, UPON REQUEST MADE WITHIN TEN YEARS OF SUCH SERVICE, ISSUE
A CERTIFICATE UNDER ITS SEAL CERTIFYING AS TO THE RECEIPT OF THE PROCESS
BY  AN  AUTHORIZED  PERSON,  THE  DATE AND PLACE OF SUCH SERVICE AND THE
RECEIPT OF THE STATUTORY FEE. PROCESS SERVED UPON THE SECRETARY OF STATE
UNDER THIS CHAPTER SHALL BE DESTROYED BY THE DEPARTMENT AFTER  A  PERIOD
OF TEN YEARS FROM SUCH SERVICE.
  §  59.  Paragraph 3 of subdivision (a) and subparagraph 4 of paragraph
(i) of subdivision (c) of section 121-201 of the partnership law,  para-

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graph  3  of  subdivision  (a)  as amended by chapter 264 of the laws of
1991, and subparagraph 4 of paragraph (i) of subdivision (c) as  amended
by chapter 44 of the laws of 2006, are amended to read as follows:
  (3)  a  designation  of the secretary of state as agent of the limited
partnership upon whom process against it may  be  served  and  the  post
office address, within or without this state, to which [the secretary of
state]  A PERSON shall mail a copy of any process against it served upon
[him] THE SECRETARY OF STATE;
  (4) a statement that the secretary of state  has  been  designated  as
agent  of  the  limited  partnership upon whom process against it may be
served and the post office address, within or  without  this  state,  to
which [the secretary of state] A PERSON shall mail a copy of any process
against it served upon [him or her] THE SECRETARY OF STATE;
  §  60.  Paragraph 4 of subdivision (b) of section 121-202 of the part-
nership law, as amended by chapter 576 of the laws of 1994,  is  amended
to read as follows:
  (4)  a  change  in the name of the limited partnership, or a change in
the post office address to which [the secretary of state] A PERSON shall
mail a copy of any process against the  limited  partnership  served  on
[him]  THE SECRETARY OF STATE, or a change in the name or address of the
registered agent, if such change is made other than pursuant to  section
121-104 or 121-105 of this article.
  §  61.  Section  121-202-A of the partnership law, as added by chapter
448 of the laws of 1998, paragraph 2 of subdivision (a)  as  amended  by
chapter 172 of the laws of 1999, is amended to read as follows:
  § 121-202-A. Certificate of change. (a) A certificate of limited part-
nership  may be changed by filing with the department of state a certif-
icate of change entitled "Certificate of Change of ..... (name of limit-
ed  partnership)  under  Section  121-202-A  of  the   Revised   Limited
Partnership  Act" and shall be signed and delivered to the department of
state. A certificate of change may (i) specify or change the location of
the limited partnership's office; (ii) specify or change the post office
address to which [the secretary of state] A PERSON shall mail a copy  of
process  against the limited partnership served upon [him] THE SECRETARY
OF STATE; and (iii) make, revoke or change the designation of  a  regis-
tered  agent,  or  to  specify  or  change the address of its registered
agent. It shall set forth:
  (1) the name of the limited partnership, and if it has  been  changed,
the name under which it was formed;
  (2)  the  date its certificate of limited partnership was filed by the
department of state; and
  (3) each change effected thereby.
  (b) A certificate of change which changes only the post office address
to which [the secretary of state] A PERSON shall  mail  a  copy  of  any
process against a limited partnership served upon [him or] THE SECRETARY
OF  STATE  AND/OR  the  address  of  the registered agent, provided such
address being changed is the address of a person,  partnership,  LIMITED
LIABILITY  CORPORATION  or  corporation  whose address, as agent, is the
address to be changed or who has been designated as registered agent for
such limited partnership shall be signed and delivered to the department
of state by such agent. The certificate of change shall  set  forth  the
statements required under subdivision (a) of this section; that a notice
of the proposed change was mailed to the domestic limited partnership by
the party signing the certificate not less than thirty days prior to the
date  of  delivery  to  the  department  of state and that such domestic
limited partnership has not objected thereto; and that the party signing

S. 7508                            89                            A. 9508

the certificate is the  agent  of  such  limited  partnership  to  whose
address  [the secretary of state] A PERSON is required to mail copies of
process SERVED ON THE SECRETARY OF STATE or  the  registered  agent,  if
such be the case. A certificate signed and delivered under this subdivi-
sion shall not be deemed to effect a change of location of the office of
the limited partnership in whose behalf such certificate is filed.
  §  62.  Paragraph 4 of subdivision (a) and subparagraph 5 of paragraph
(i) of subdivision (d) of section 121-902 of the partnership law,  para-
graph 4 of subdivision (a) as amended by chapter 172 of the laws of 1999
and  subparagraph  5  of  paragraph (i) of subdivision (d) as amended by
chapter 44 of the laws of 2006, are amended to read as follows:
  (4) a designation of the secretary of state as  its  agent  upon  whom
process  against it may be served and the post office address, within or
without this state, to which [the secretary of  state]  A  PERSON  shall
mail a copy of any process against it served upon [him] THE SECRETARY OF
STATE;
  (5) a statement that the secretary of state has been designated as its
agent  upon  whom  process  against it may be served and the post office
address, within or without this state, to which [the secretary of state]
A PERSON shall mail a copy of any process against it served upon [him or
her] THE SECRETARY OF STATE;
  § 63. Section 121-903-A of the partnership law, as  added  by  chapter
448 of the laws of 1998, is amended to read as follows:
  §  121-903-A. Certificate of change. (a) A foreign limited partnership
may change its application for authority by filing with  the  department
of  state  a  certificate  of  change  entitled  "Certificate  of Change
of ........ (name of limited partnership) under Section 121-903-A of the
Revised Limited Partnership Act" and shall be signed  and  delivered  to
the  department  of  state.  A  certificate of change may (i) change the
location of the limited  partnership's  office;  (ii)  change  the  post
office  address  to which [the secretary of state] A PERSON shall mail a
copy of process against the limited partnership served  upon  [him]  THE
SECRETARY  OF STATE; and (iii) make, revoke or change the designation of
a registered agent, or to specify or change the address  of  its  regis-
tered agent. It shall set forth:
  (1)  the  name  of the foreign limited partnership and, if applicable,
the fictitious name the foreign limited partnership has agreed to use in
this state pursuant to section 121-902 of this article;
  (2) the date its application for authority was filed by the department
of state; and
  (3) each change effected thereby.
  (b) A certificate of change which changes only the post office address
to which [the secretary of state] A PERSON shall  mail  a  copy  of  any
process  against  a foreign limited partnership served upon [him or] THE
SECRETARY OF STATE AND/OR the address of the registered agent,  provided
such  address  being  changed  is  the address of a person, partnership,
LIMITED LIABILITY COMPANY or corporation whose address, as agent, is the
address to be changed or who has been designated as registered agent for
such foreign limited partnership shall be signed and  delivered  to  the
department  of  state by such agent. The certificate of change shall set
forth the statements required under subdivision  (a)  of  this  section;
that  a  notice of the proposed change was mailed to the foreign limited
partnership by the party signing the certificate not  less  than  thirty
days  prior  to the date of delivery to the department of state and that
such foreign limited partnership has not objected thereto; and that  the
party signing the certificate is the agent of such foreign limited part-

S. 7508                            90                            A. 9508

nership  to  whose address [the secretary of state] A PERSON is required
to mail copies of process SERVED ON THE SECRETARY OF STATE or the regis-
tered agent, if such be the case. A  certificate  signed  and  delivered
under  this  subdivision  shall  not  be  deemed  to  effect a change of
location of the office of the limited partnership in whose  behalf  such
certificate is filed.
  §  64.  Paragraph 6 of subdivision (b) of section 121-905 of the part-
nership law, as added by chapter 950 of the laws of 1990, is amended  to
read as follows:
  (6) a post office address, within or without this state, to which [the
secretary of state] A PERSON shall mail a copy of any process against it
served upon [him] THE SECRETARY OF STATE.
  §  65. Paragraph 7 of subdivision (a) of section 121-1103 of the part-
nership law, as added by chapter 950 of the laws of 1990, is amended  to
read as follows:
  (7)  A  designation  of  the secretary of state as its agent upon whom
process against it may be served in the  manner  set  forth  in  section
121-109  of this article in any action or special proceeding, and a post
office address, within or without this state, to which [the secretary of
state] A PERSON shall mail a copy of any process served upon  [him]  THE
SECRETARY  OF STATE.  Such post office address shall supersede any prior
address designated as the address to which process shall be mailed.
  § 66. Subparagraphs 2 and 4 of paragraph (I) and clause 4 of  subpara-
graph  (A)  of  paragraph (II) of subdivision (a) of section 121-1500 of
the partnership law, subparagraph 2 of paragraph (I) as added by chapter
576 of the laws of 1994, subparagraph 4 of paragraph (I) as  amended  by
chapter  643  of  the laws of 1995 and such paragraph as redesignated by
chapter 767 of the laws of 2005 and clause  4  of  subparagraph  (A)  of
paragraph (II) as amended by chapter 44 of the laws of 2006, are amended
to read as follows:
  (2)  the  address,  WITHIN  THIS STATE, of the principal office of the
partnership without limited partners;
  (4) a designation of the secretary of state as agent of  the  partner-
ship without limited partners upon whom process against it may be served
and  the post office address, within or without this state, to which the
[secretary of state] A PERSON shall mail a copy of any  process  against
it or served [upon it] ON THE SECRETARY OF STATE;
  (4)  a  statement  that  the secretary of state has been designated as
agent of the registered limited liability partnership upon whom  process
against  it may be served and the post office address, within or without
this state, to which [the secretary of state] A PERSON shall mail a copy
of any process against it served upon [him  or  her]  THE  SECRETARY  OF
STATE;
  § 67. Paragraphs (ii) and (iii) of subdivision (g) of section 121-1500
of  the partnership law, as amended by section 8 of part S of chapter 59
of the laws of 2015, are amended to read as follows:
  (ii) the address, WITHIN THIS STATE, 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] A PERSON
shall mail a copy of any process accepted against it served upon [him or
her]  THE SECRETARY OF STATE, which address shall supersede any previous
address on file with the department of state for this purpose, and
  § 68. Subdivision (j-1) of section 121-1500 of the partnership law, as
added by chapter 448 of the laws of 1998, is amended to read as follows:
  (j-1) A certificate of change  which  changes  only  the  post  office
address  to which [the secretary of state] A PERSON shall mail a copy of

S. 7508                            91                            A. 9508

any process against a registered limited  liability  partnership  served
upon  [him]  THE SECRETARY OF STATE AND/or the address of the registered
agent, provided such address being changed is the address of  a  person,
partnership,  LIMITED LIABILITY COMPANY or corporation whose address, as
agent, is the address to be changed or who has been designated as regis-
tered agent for such registered limited liability partnership  shall  be
signed  and  delivered  to  the  department  of state by such agent. The
certificate of change shall set forth: (i) the name  of  the  registered
limited  liability  partnership  and,  if  it has been changed, the name
under which it was originally filed with the department of  state;  (ii)
the  date  of  filing  of  its initial registration or notice statement;
(iii) each change effected thereby; (iv) that a notice of  the  proposed
change  was  mailed  to  the  limited liability partnership by the party
signing the certificate not less than thirty days prior to the  date  of
delivery  to  the  department  of  state and that such limited liability
partnership has not objected thereto; and (v) that the party signing the
certificate is the agent of such limited liability partnership to  whose
address  [the secretary of state] A PERSON is required to mail copies of
process SERVED ON THE SECRETARY OF STATE or  the  registered  agent,  if
such be the case. A certificate signed and delivered under this subdivi-
sion shall not be deemed to effect a change of location of the office of
the  limited  liability  partnership in whose behalf such certificate is
filed. The certificate of change shall be accompanied by a fee  of  five
dollars.
  §  69.  Subdivision (a) of section 121-1502 of the partnership law, as
amended by chapter 643 of the laws of 1995, paragraph (v) as amended  by
chapter 470 of the laws of 1997, is amended to read as follows:
  (a)  In  order for a foreign limited liability partnership to carry on
or conduct or transact business or activities as a New  York  registered
foreign limited liability partnership in this state, such foreign limit-
ed  liability  partnership  shall  file  with  the department of state a
notice which shall set forth: (i)  the  name  under  which  the  foreign
limited liability partnership intends to carry on or conduct or transact
business  or  activities  in  this state; (ii) the date on which and the
jurisdiction in which it registered as a limited liability  partnership;
(iii)  the  address,  WITHIN  THIS STATE, of the principal office of the
foreign  limited  liability  partnership;   (iv)   the   profession   or
professions  to  be practiced by such foreign limited liability partner-
ship and a statement that it is a foreign limited liability  partnership
eligible  to  file a notice under this chapter; (v) a designation of the
secretary of state as agent of the foreign limited liability partnership
upon whom process against it may be served and the post  office  address
within or without this state, to which [the secretary of state] A PERSON
shall  mail  a  copy of any process against it [or] served upon [it] THE
SECRETARY OF STATE; (vi) if the foreign limited liability partnership is
to have a registered agent, its name and address in  this  state  and  a
statement  that  the  registered agent is to be the agent of the foreign
limited liability partnership  upon  whom  process  against  it  may  be
served;  (vii)  a statement that its registration as a limited liability
partnership is effective in the jurisdiction in which it registered as a
limited liability partnership at the time of the filing of such  notice;
(viii)  a  statement  that  the foreign limited liability partnership is
filing a notice in order to obtain  status  as  a  New  York  registered
foreign  limited  liability partnership; (ix) if the registration of the
foreign limited liability partnership is to be effective on a date later
than the time of filing, the date, not to exceed  sixty  days  from  the

S. 7508                            92                            A. 9508

date  of  filing,  of  such  proposed  effectiveness;  and (x) any other
matters the foreign limited liability partnership determines to  include
in  the notice. Such notice shall be accompanied by either (1) a copy of
the  last  registration  or renewal registration (or similar filing), if
any, filed by the foreign limited liability partnership with the  juris-
diction  where it registered as a limited liability partnership or (2) a
certificate, issued by the jurisdiction where it registered as a limited
liability partnership, substantially to the  effect  that  such  foreign
limited  liability  partnership  has  filed  a registration as a limited
liability partnership which is effective on the date of the  certificate
(if  such  registration,  renewal  registration  or  certificate is in a
foreign language, a translation thereof under  oath  of  the  translator
shall  be  attached thereto). Such notice shall also be accompanied by a
fee of two hundred fifty dollars.
  § 70. Subparagraphs (ii) and (iii) of paragraph (I) of subdivision (f)
of section 121-1502 of the partnership law, as amended by section  9  of
part  S  of  chapter  59  of  the  laws  of 2015, are amended to read as
follows:
  (ii) the address, WITHIN THIS STATE, 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  secre-
tary  of  state]  A  PERSON  shall  mail  a copy of any process accepted
against it served upon [him  or  her]  THE  SECRETARY  OF  STATE,  which
address shall supersede any previous address on file with the department
of state for this purpose, and
  §  71.  Clause  5 of subparagraph (A) of paragraph (II) of subdivision
(f) of section 121-1502 of the partnership law, as amended by chapter 44
of the laws of 2006, is amended to read as follows:
  (5) a statement that the secretary of state  has  been  designated  as
agent  of  the  foreign  limited liability partnership upon whom process
against it may be served and the post office address, within or  without
this state, to which [the secretary of state] A PERSON shall mail a copy
of  any  process  against  it  served upon [him or her] THE SECRETARY OF
STATE;
  § 72. Subdivision (i-1) of section 121-1502 of the partnership law, as
added by chapter 448 of the laws of 1998, is amended to read as follows:
  (i-1) A certificate of change  which  changes  only  the  post  office
address  to which [the secretary of state] A PERSON shall mail a copy of
any process against a New  York  registered  foreign  limited  liability
partnership  served upon [him] THE SECRETARY OF STATE AND/or the address
of the registered agent, provided such  address  being  changed  is  the
address  of  a  person, partnership, LIMITED LIABILITY COMPANY or corpo-
ration whose address, as agent, is the address to be changed or who  has
been  designated  as registered agent of such registered foreign limited
liability partnership shall be signed and delivered to the department of
state by such agent. The certificate of change shall set forth: (i)  the
name  of  the New York registered foreign limited liability partnership;
(ii) the date of filing of its initial registration or notice statement;
(iii) each change effected thereby; (iv) that a notice of  the  proposed
change  was  mailed  to  the  limited liability partnership by the party
signing the certificate not less than thirty days prior to the  date  of
delivery  to  the  department  of  state and that such limited liability
partnership has not objected thereto; and (v) that the party signing the
certificate is the agent of such limited liability partnership to  whose
address  [the secretary of state] A PERSON is required to mail copies of
process SERVED ON THE SECRETARY OF STATE or  the  registered  agent,  if

S. 7508                            93                            A. 9508

such be the case. A certificate signed and delivered under this subdivi-
sion shall not be deemed to effect a change of location of the office of
the  limited  liability  partnership in whose behalf such certificate is
filed.  The  certificate of change shall be accompanied by a fee of five
dollars.
  § 73. Subdivision (a) of section 121-1505 of the partnership  law,  as
added  by chapter 470 of the laws of 1997, is amended and two new subdi-
visions (d) and (e) are added to read as follows:
  (a) Service of process on the secretary of state as agent of a  regis-
tered  limited  liability  partnership  OR  NEW  YORK REGISTERED FOREIGN
LIMITED LIABILITY PARTNERSHIP under this article shall be made by  MAIL-
ING  THE PROCESS AND NOTICE OF SERVICE THEREOF BY CERTIFIED MAIL, RETURN
RECEIPT REQUESTED, TO SUCH REGISTERED LIMITED LIABILITY  PARTNERSHIP  OR
NEW  YORK  REGISTERED FOREIGN LIMITED LIABILITY PARTNERSHIP, AT THE POST
OFFICE ADDRESS ON FILE IN THE DEPARTMENT OF  STATE  SPECIFIED  FOR  SUCH
PURPOSE.  ON THE SAME DATE THAT SUCH PROCESS IS MAILED, A DUPLICATE COPY
OF SUCH PROCESS AND PROOF OF MAILING TOGETHER WITH  THE  STATUTORY  FEE,
WHICH FEE SHALL BE A TAXABLE DISBURSEMENT, SHALL BE personally [deliver-
ing]  DELIVERED  to  and [leaving] LEFT with the secretary of state or a
deputy, or with any person authorized  by  the  secretary  of  state  to
receive  such  service,  at the office of the department of state in the
city of Albany, [duplicate copies of such  process]  together  with  the
statutory fee, which fee shall be a taxable disbursement. PROOF OF MAIL-
ING  SHALL  BE  BY AFFIDAVIT OF COMPLIANCE WITH THIS SECTION. Service of
process on such registered limited liability  partnership  OR  NEW  YORK
REGISTERED  FOREIGN LIMITED LIABILITY PARTNERSHIP shall be complete when
the secretary of state is so  served.  [The  secretary  of  state  shall
promptly  send  one  of  such  copies  by certified mail, return receipt
requested, to such registered limited liability partnership, at the post
office address on file in the department of  state  specified  for  such
purpose.]
  (D) THE DEPARTMENT OF STATE SHALL KEEP A RECORD OF EACH PROCESS SERVED
UPON  THE  SECRETARY  OF STATE UNDER THIS CHAPTER, INCLUDING THE DATE OF
SUCH SERVICE. IT SHALL, UPON REQUEST  MADE  WITHIN  TEN  YEARS  OF  SUCH
SERVICE, ISSUE A CERTIFICATE UNDER ITS SEAL CERTIFYING AS TO THE RECEIPT
OF  THE  PROCESS  BY  AN  AUTHORIZED  PERSON, THE DATE AND PLACE OF SUCH
SERVICE AND THE RECEIPT OF THE STATUTORY FEE.  PROCESS SERVED  UPON  THE
SECRETARY  OF STATE UNDER THIS CHAPTER SHALL BE DESTROYED BY THE DEPART-
MENT OF STATE AFTER A PERIOD OF TEN YEARS FROM SUCH SERVICE.
  (E) ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY  OF
STATE AS AGENT OF A REGISTERED LIMITED LIABILITY PARTNERSHIP OR NEW YORK
REGISTERED  FOREIGN  LIMITED  LIABILITY  PARTNERSHIP  FOR THE PURPOSE OF
MAILING PROCESS SHALL BE THE POST OFFICE ADDRESS, WITHIN OR WITHOUT  THE
STATE, TO WHICH A PERSON SHALL MAIL PROCESS AGAINST SUCH LIMITED LIABIL-
ITY  COMPANY  AS  REQUIRED  BY THIS ARTICLE. SUCH ADDRESS SHALL CONTINUE
UNTIL THE FILING OF A CERTIFICATE UNDER THIS CHAPTER DIRECTING THE MAIL-
ING TO A DIFFERENT POST OFFICE ADDRESS.
  § 74. Subdivision (b) of section 121-1506 of the partnership  law,  as
added  by  chapter  448  of  the laws of 1998, paragraph 4 as amended by
chapter 172 of the laws of 1999, is amended to read as follows:
  (b) The party (or the party's legal representative) whose post  OFFICE
address  has  been  supplied  by  a limited liability partnership as its
address for process may resign. A certificate entitled  "Certificate  of
Resignation  for  Receipt  of  Process  under Section 121-1506(b) of the
Partnership Law" shall be signed by such  party  and  delivered  to  the
department of state. It shall set forth:

S. 7508                            94                            A. 9508

  (1)  The  name  of the limited liability partnership and the date that
its certificate of registration was filed by the department of state.
  (2)  That  the address of the party has been designated by the limited
liability partnership as the post office address to which [the secretary
of state] A PERSON shall mail a copy of any process served on the secre-
tary of state as agent for such limited liability partnership  and  that
such party wishes to resign.
  (3) That AT LEAST sixty days prior to the filing of the certificate of
resignation  FOR  RECEIPT  OF  PROCESS  with the department of state the
party has sent a copy of the certificate of resignation for  receipt  of
process by registered or certified mail to the address of the registered
agent  of the [designated] DESIGNATING limited liability partnership, if
other than the party filing the certificate of resignation, for  receipt
of process, or if the [resigning] DESIGNATING limited liability partner-
ship  has  no  registered agent, then to the last address of the [desig-
nated] DESIGNATING limited liability partnership, known  to  the  party,
specifying the address to which the copy was sent. If there is no regis-
tered  agent  and  no known address of the designating limited liability
partnership the party shall attach an affidavit to the certificate stat-
ing that a diligent but unsuccessful search was made  by  the  party  to
locate  the  limited liability partnership, specifying what efforts were
made.
  (4) That the [designated] DESIGNATING limited liability partnership is
required to deliver to the department of state a certificate  of  amend-
ment  providing for the designation by the limited liability partnership
of a new address and that upon its failure to file such certificate, its
authority to do business in this state shall be suspended.
  § 75. Paragraph 16 of subdivision 1 of  section  103  of  the  private
housing  finance  law,  as  added  by chapter 22 of the laws of 1970, is
amended to read as follows:
  (16) A designation of the secretary of state as agent  of  the  corpo-
ration  upon  whom  process against it may be served and the post office
address, within or without this state, to which [the secretary of state]
A PERSON shall mail a copy of any process against it served  upon  [him]
THE SECRETARY OF STATE.
  §  76.  Subdivision  7  of  section  339-n of the real property law is
REPEALED and subdivisions 8 and 9 are renumbered subdivisions 7 and 8.
  § 76-a. Subdivision 15 of section  20.03  of  the  arts  and  cultural
affairs  law, as added by chapter 656 of the laws of 1991, is amended to
read as follows:
  15. "Non-institutional portion" shall mean the part or  portion  of  a
combined-use  facility other than the institutional portion. If the non-
institutional portion, or any part thereof, consists of  a  condominium,
the  consent  of the trust which has developed or approved the developer
of such condominium shall be required prior  to  any  amendment  of  the
declaration  of such condominium pursuant to subdivision [nine] EIGHT of
section three hundred thirty-nine-n of the real property law  and  prior
to  any  amendment  of the by-laws of such condominium pursuant to para-
graph (j) of subdivision one of section three hundred  thirty-nine-v  of
the  real property law, and whether or not such trust is a unit owner of
such condominium, it may exercise the rights of the  board  of  managers
and an aggrieved unit owner under section three hundred thirty-nine-j of
the real property law in the case of a failure of any unit owner of such
condominium  to comply with the by-laws of such condominium and with the
rules, regulations, and decisions adopted pursuant thereto.

S. 7508                            95                            A. 9508

  § 77. Subdivision 2 of section 339-s of  the  real  property  law,  as
added by chapter 346 of the laws of 1997, is amended to read as follows:
  2.  [Each  such  declaration,  and any amendment or amendments thereof
shall be filed with the department of state] (A) THE BOARD  OF  MANAGERS
FOR  EACH CONDOMINIUM SUBJECT TO THIS ARTICLE SHALL FILE WITH THE SECRE-
TARY OF STATE A CERTIFICATE, IN WRITING, SIGNED, DESIGNATING THE  SECRE-
TARY  OF  STATE  AS  AGENT  OF  THE  BOARD OF MANAGERS UPON WHOM PROCESS
AGAINST IT MAY BE SERVED AND THE POST OFFICE ADDRESS TO WHICH  A  PERSON
SHALL MAIL A COPY OF SUCH PROCESS.  THE CERTIFICATE SHALL BE ACCOMPANIED
BY A FEE OF SIXTY DOLLARS.
  (B)  ANY  BOARD  OF  MANAGERS MAY CHANGE THE ADDRESS TO WHICH A PERSON
SHALL MAIL A COPY OF PROCESS SERVED UPON  THE  SECRETARY  OF  STATE,  BY
FILING  A  SIGNED CERTIFICATE OF AMENDMENT WITH THE DEPARTMENT OF STATE.
SUCH CERTIFICATE SHALL BE ACCOMPANIED BY A FEE OF SIXTY DOLLARS.
  (C) SERVICE OF PROCESS ON THE SECRETARY OF STATE AS AGENT OF  A  BOARD
OF  MANAGERS  SHALL BE MADE BY MAILING THE PROCESS AND NOTICE OF SERVICE
OF PROCESS PURSUANT TO THIS SECTION BY CERTIFIED  MAIL,  RETURN  RECEIPT
REQUESTED, TO SUCH BOARD OF MANAGERS, AT THE POST OFFICE ADDRESS ON FILE
IN  THE  DEPARTMENT OF STATE SPECIFIED FOR THIS PURPOSE. ON THE SAME DAY
THAT SUCH PROCESS IS MAILED, A DUPLICATE COPY OF SUCH PROCESS AND  PROOF
OF  MAILING SHALL BE PERSONALLY DELIVERED TO AND LEFT WITH THE SECRETARY
OF STATE OR A DEPUTY, OR WITH ANY PERSON AUTHORIZED BY THE SECRETARY  OF
STATE  TO RECEIVE SUCH SERVICE, AT THE OFFICE OF THE DEPARTMENT OF STATE
IN THE CITY OF ALBANY, A DUPLICATE COPY OF SUCH PROCESS  WITH  PROOF  OF
MAILING  TOGETHER  WITH  THE  STATUTORY  FEE,  WHICH  SHALL BE A TAXABLE
DISBURSEMENT. PROOF OF MAILING SHALL BE BY AFFIDAVIT OF COMPLIANCE  WITH
THIS  SECTION.  SERVICE  OF  PROCESS  ON  A  BOARD  OF MANAGERS SHALL BE
COMPLETE WHEN THE SECRETARY OF STATE IS SO SERVED.
  (D) AS USED IN THIS ARTICLE, "PROCESS" SHALL MEAN JUDICIAL PROCESS AND
ALL ORDERS, DEMANDS, NOTICES OR OTHER PAPERS REQUIRED  OR  PERMITTED  BY
LAW  TO  BE PERSONALLY SERVED ON A BOARD OF MANAGERS, FOR THE PURPOSE OF
ACQUIRING JURISDICTION OF SUCH  BOARD  OF  MANAGERS  IN  ANY  ACTION  OR
PROCEEDING,  CIVIL  OR CRIMINAL, WHETHER JUDICIAL, ADMINISTRATIVE, ARBI-
TRATIVE OR OTHERWISE, IN THIS STATE OR IN THE FEDERAL COURTS SITTING  IN
OR FOR THIS STATE.
  (E) NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT TO SERVE PROCESS IN
ANY OTHER MANNER PERMITTED BY LAW.
  (F) THE DEPARTMENT OF STATE SHALL KEEP A RECORD OF EACH PROCESS SERVED
UNDER  THIS  SECTION,  INCLUDING  THE  DATE  OF  SERVICE. IT SHALL, UPON
REQUEST, MADE WITHIN TEN YEARS OF  SUCH  SERVICE,  ISSUE  A  CERTIFICATE
UNDER  ITS SEAL CERTIFYING AS TO THE RECEIPT OF PROCESS BY AN AUTHORIZED
PERSON, THE DATE AND PLACE OF SUCH SERVICE AND THE RECEIPT OF THE STATU-
TORY FEE. PROCESS SERVED ON THE SECRETARY OF STATE  UNDER  THIS  SECTION
SHALL  BE  DESTROYED  BY  THE  DEPARTMENT OF STATE AFTER A PERIOD OF TEN
YEARS FROM SUCH SERVICE.
  (G) ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY  OF
STATE AS AGENT OF THE BOARD OF MANAGERS FOR THE PURPOSE OF MAILING PROC-
ESS  SHALL  BE  THE POST OFFICE ADDRESS, WITHIN OR WITHOUT THE STATE, TO
WHICH A PERSON SHALL MAIL PROCESS AGAINST SUCH BOARD AS REQUIRED BY THIS
ARTICLE. SUCH ADDRESS SHALL CONTINUE UNTIL THE FILING OF  A  CERTIFICATE
UNDER  THIS  CHAPTER  DIRECTING  THE  MAILING TO A DIFFERENT POST OFFICE
ADDRESS.
  § 78. Subdivisions 3 and 4 of section 442-g of the real property  law,
as  amended  by  chapter 482 of the laws of 1963, are amended to read as
follows:

S. 7508                            96                            A. 9508

  3. Service of such process upon the secretary of state shall  be  made
by  personally delivering to and leaving with [him or his] THE SECRETARY
OF STATE OR A deputy, or with any person authorized by the secretary  of
state  to receive such service, at the office of the department of state
in  the  city  of  Albany, [duplicate copies] A COPY of such process AND
PROOF OF MAILING together with a fee of five dollars if  the  action  is
solely  for  the recovery of a sum of money not in excess of two hundred
dollars and the process is so endorsed, and a fee of ten dollars in  any
other  action  or proceeding, which fee shall be a taxable disbursement.
If such process is served  upon  behalf  of  a  county,  city,  town  or
village, or other political subdivision of the state, the fee to be paid
to  the  secretary  of  state shall be five dollars, irrespective of the
amount involved or the nature of the action on  account  of  which  such
service  of  process is made. [If the cost of registered mail for trans-
mitting a copy of the process shall exceed two  dollars,  an  additional
fee  equal  to  such  excess shall be paid at the time of the service of
such process.] PROOF OF MAILING SHALL BE BY AFFIDAVIT OF COMPLIANCE WITH
THIS SECTION. Proof of service shall be by affidavit of compliance  with
this  subdivision  filed  by or on behalf of the plaintiff together with
the process, within ten days after such service, with the clerk  of  the
court  in  which  the  action or special proceeding is pending.  Service
made as provided in this section shall be complete ten days  after  such
papers  are  filed  with  the clerk of the court and shall have the same
force and validity as if served on him personally within the  state  and
within  the territorial jurisdiction of the court from which the process
issues.
  4. The [secretary of state] PERSON SERVING SUCH PROCESS shall [prompt-
ly] send [one of] such [copies] PROCESS by [registered] CERTIFIED  mail,
return  receipt  requested,  to  the  nonresident  broker or nonresident
salesman at the post office address of his main office as set  forth  in
the last application filed by him.
  § 79. Subdivision 2 of section 203 of the tax law, as amended by chap-
ter 100 of the laws of 1964, is amended to read as follows:
  2.    Every  foreign  corporation  (other  than a moneyed corporation)
subject to the provisions of this article, except a corporation having a
certificate of authority [under section two hundred twelve of the gener-
al corporation law] or having authority to  do  business  by  virtue  of
section  thirteen  hundred  five  of the business corporation law, shall
file in the department of state a  certificate  of  designation  in  its
corporate  name, signed and acknowledged by its president or a vice-pre-
sident or its secretary or treasurer, under its corporate  seal,  desig-
nating  the  secretary  of  state  as its agent upon whom process in any
action provided for by this article may be served within this state, and
setting forth an address to which [the  secretary  of  state]  A  PERSON
shall  mail a copy of any such process against the corporation which may
be served upon [him] THE SECRETARY OF STATE.   In case any  such  corpo-
ration  shall  have  failed  to file such certificate of designation, it
shall be deemed to have designated the secretary of state as  its  agent
upon whom such process against it may be served; and until a certificate
of  designation shall have been filed the corporation shall be deemed to
have directed [the secretary of state] A PERSON SERVING PROCESS to  mail
copies of process served upon [him] THE SECRETARY OF STATE to the corpo-
ration  at  its  last  known office address within or without the state.
When a certificate of designation has been  filed  by  such  corporation
[the  secretary  of state] A PERSON SERVING PROCESS shall mail copies of
process thereafter served upon [him]  THE  SECRETARY  OF  STATE  to  the

S. 7508                            97                            A. 9508

address  set forth in such certificate.  Any such corporation, from time
to time, may change the address to which  [the  secretary  of  state]  A
PERSON is directed to mail copies of process, by filing a certificate to
that  effect  executed,  signed  and  acknowledged  in  like manner as a
certificate of designation as herein provided.  Service of process  upon
any  such  corporation  or  upon any corporation having a certificate of
authority [under section two hundred twelve of the  general  corporation
law]  or  having  authority to do business by virtue of section thirteen
hundred five of the business corporation law, in any action commenced at
any time pursuant to the provisions of this  article,  may  be  made  by
either  (1)  personally  delivering to and leaving with the secretary of
state, a deputy secretary of state or with any person authorized by  the
secretary  of  state  to  receive such service [duplicate copies] A COPY
thereof at the office of the department of state in the city of  Albany,
in  which  event  [the secretary of state] A PERSON SERVING SUCH PROCESS
shall forthwith send by  [registered]  CERTIFIED  mail,  return  receipt
requested,  [one  of such copies] A DUPLICATE COPY to the corporation at
the address designated by it or at its last known office address  within
or  without  the state, or (2) personally delivering to and leaving with
the secretary of state, a deputy secretary of state or with  any  person
authorized  by  the  secretary  of state to receive such service, a copy
thereof at the office of the department of state in the city  of  Albany
and  by  delivering  a  copy thereof to, and leaving such copy with, the
president, vice-president, secretary,  assistant  secretary,  treasurer,
assistant  treasurer,  or  cashier  of  such corporation, or the officer
performing corresponding functions under another name, or a director  or
managing agent of such corporation, personally without the state.  Proof
of such personal service without the state shall be filed with the clerk
of  the  court  in  which the action is pending within thirty days after
such service, and such service shall be complete ten  days  after  proof
thereof is filed.
  §  80. Section 216 of the tax law, as added by chapter 415 of the laws
of 1944, the opening paragraph as amended by chapter 100 of the laws  of
1964  and redesignated by chapter 613 of the laws of 1976, is amended to
read as follows:
  § 216. Collection of taxes. Every foreign corporation  (other  than  a
moneyed corporation) subject to the provisions of this article, except a
corporation having a certificate of authority [under section two hundred
twelve  of  the general corporation law] or having authority to do busi-
ness by virtue of section thirteen hundred five of the  business  corpo-
ration  law,  shall  file  in  the  department of state a certificate of
designation in its corporate name, signed and acknowledged by its presi-
dent or a vice-president or its secretary or treasurer, under its corpo-
rate seal, designating the secretary of state as  its  agent  upon  whom
process  in any action provided for by this article may be served within
this state, and setting forth an address  to  which  [the  secretary  of
state] A PERSON shall mail a copy of any such process against the corpo-
ration  which  may  be served upon [him] THE SECRETARY OF STATE. In case
any such corporation shall have  failed  to  file  such  certificate  of
designation,  it  shall  be  deemed  to have designated the secretary of
state as its agent upon whom such process against it may be served;  and
until a certificate of designation shall have been filed the corporation
shall  be  deemed  to have directed [the secretary of state] A PERSON to
mail [copies] A COPY of process served upon [him] THE SECRETARY OF STATE
to the corporation at its last known office address  within  or  without
the  state.    When  a certificate of designation has been filed by such

S. 7508                            98                            A. 9508

corporation [the secretary of state] A PERSON SERVING SUCH PROCESS shall
mail [copies] A COPY of process thereafter served upon  [him]  A  PERSON
SERVING  SUCH PROCESS to the address set forth in such certificate.  Any
such  corporation,  from  time  to time, may change the address to which
[the secretary of state] A PERSON is directed to mail copies of process,
by filing a certificate to that effect executed, signed and acknowledged
in like manner as a  certificate  of  designation  as  herein  provided.
Service  of  process  upon  any such corporation or upon any corporation
having a certificate of authority [under section two hundred  twelve  of
the  general  corporation  law]  or  having  authority to do business by
virtue of section thirteen hundred five of the business corporation law,
in any action commenced at any time pursuant to the provisions  of  this
article,  may be made by either (1) personally delivering to and leaving
with the secretary of state, a deputy secretary of  state  or  with  any
person  authorized  by  the  secretary  of state to receive such service
[duplicate copies] A COPY thereof at the office  of  the  department  of
state  in  the city of Albany, in which event [the secretary of state] A
PERSON SERVING SUCH PROCESS shall forthwith send by [registered]  CERTI-
FIED  mail,  return  receipt requested, [one of such copies] A DUPLICATE
COPY to the corporation at the address designated by it or at  its  last
known  office  address  within  or  without the state, or (2) personally
delivering to and leaving with the secretary of state, a  deputy  secre-
tary of state or with any person authorized by the secretary of state to
receive  such service, a copy thereof at the office of the department of
state in the city of Albany and by delivering a  copy  thereof  to,  and
leaving  such  copy  with,  the  president,  vice-president,  secretary,
assistant secretary, treasurer, assistant treasurer, or cashier of  such
corporation,  or  the  officer  performing corresponding functions under
another name, or a director  or  managing  agent  of  such  corporation,
personally  without  the state.   Proof of such personal service without
the state shall be filed with the clerk of the court in which the action
is pending within thirty days after such service, and such service shall
be complete ten days after proof thereof is filed.
  § 81. Subdivisions (a) and (b) of section 310 of the tax law, as added
by chapter 400 of the laws of 1983, are amended to read as follows:
  (a) Designation for  service  of  process.--Every  petroleum  business
which  is  a  corporation,  except  such  a  petroleum business having a
certificate of authority [under section two hundred twelve of the gener-
al corporation law] or having authority to  do  business  by  virtue  of
section  thirteen  hundred  five  of the business corporation law, shall
file in the department of state a  certificate  of  designation  in  its
corporate  name, signed and acknowledged by its president or vice-presi-
dent or its secretary or treasurer, under its corporate seal,  designat-
ing  the secretary of state as its agent upon whom process in any action
provided for by this article  may  be  served  within  this  state,  and
setting  forth  an  address  to  which [the secretary of state] A PERSON
shall mail a copy of any such process against  such  petroleum  business
which  may be served upon [him] THE SECRETARY OF STATE. In case any such
petroleum business shall have failed to file such certificate of  desig-
nation,  it shall be deemed to have designated the secretary of state as
its agent upon whom such process against it may be served; and  until  a
certificate  of designation shall have been filed such a petroleum busi-
ness shall be deemed to have directed [the secretary of state] A  PERSON
to  mail  copies  of process served upon [him] THE SECRETARY OF STATE to
such petroleum business at its last known office address within or with-
out the state. When a certificate of designation has been filed by  such

S. 7508                            99                            A. 9508

a  petroleum  business [the secretary of state] A PERSON SERVING PROCESS
shall mail copies of process thereafter served upon [him] THE  SECRETARY
OF STATE to the address set forth in such certificate. Any such petrole-
um  business,  from  time  to time, may change the address to which [the
secretary of state] A PERSON is directed to mail copies of  process,  by
filing a certificate to that effect executed, signed and acknowledged in
like manner as a certificate of designation as herein provided.
  (b)  Service  of process.--Service of process upon any petroleum busi-
ness which is a  corporation  (including  any  such  petroleum  business
having  a  certificate of authority [under section two hundred twelve of
the general corporation law] or  having  authority  to  do  business  by
virtue  of  section  thirteen  hundred  five of the business corporation
law), in any action commenced at any time pursuant to the provisions  of
this  article,  may  be  made by either (1) personally delivering to and
leaving with the secretary of state, a deputy secretary of state or with
any person authorized by the secretary of state to receive such  service
[duplicate  copies]  A  COPY  thereof at the office of the department of
state in the city of Albany, in which event [the secretary of  state]  A
PERSON  SERVING  PROCESS  shall forthwith send by [registered] CERTIFIED
mail, return receipt requested, [one of such copies] A DUPLICATE COPY to
such petroleum business at the address designated by it or at  its  last
known  office  address  within  or  without the state, or (2) personally
delivering to and leaving with the secretary of state, a  deputy  secre-
tary of state or with any person authorized by the secretary of state to
receive  such service, a copy thereof at the office of the department of
state in the city of Albany and by delivering a  copy  thereof  to,  and
leaving  such  copy  with,  the  president,  vice-president,  secretary,
assistant secretary, treasurer, assistant treasurer, or cashier of  such
petroleum  business,  or  the officer performing corresponding functions
under another name, or a director or managing agent  of  such  petroleum
business,  personally  without the state. Proof of such personal service
without the state shall be filed with the clerk of the  court  in  which
the  action  is  pending within thirty days after such service, and such
service shall be complete ten days after proof thereof is filed.
  § 82. This act shall take effect on  the  one  hundred  twentieth  day
after it shall have become a law.

                                 PART U

  Section  1.  Section  970-r  of the general municipal law, as added by
section 1 of part F of chapter 1 of the laws  of  2003,  subdivision  1,
paragraph f of subdivision 3 and paragraph h of subdivision 6 as amended
by  section  1 of part F of chapter 577 of the laws of 2004, paragraph a
of subdivision 1 as amended and paragraph h of subdivision 1 as added by
chapter 386 of the laws of 2007, paragraph i of subdivision 1  as  added
and  paragraph  e  of subdivision 1, paragraph a of subdivision 2, para-
graph d of subdivision 2, the opening paragraph of paragraph e of subdi-
vision 2, subparagraph 6 of paragraph e of subdivision 2, paragraph f of
subdivision 2, paragraph g of subdivision 2, paragraph b of  subdivision
3, the opening paragraph of paragraph f of subdivision 3, subparagraph 6
of paragraph f of subdivision 3, paragraph g of subdivision 3, paragraph
h of subdivision 3, paragraph i of subdivision 3, and subdivisions 7 and
9 as amended by chapter 390 of the laws of 2008, paragraph b of subdivi-
sion 2 as amended by section 26 and subparagraphs 2 and 5 of paragraph c
of  subdivision 2 as amended by section 27, paragraph a of subdivision 3
as amended by section 28, subparagraphs 2 and 5 of paragraph e of subdi-

S. 7508                            100                           A. 9508

vision 3 and subdivision 4 as amended by section  29,  paragraph  a  and
subparagraphs  2  and  5  of  paragraph e of subdivision 6 as amended by
section 30 and subdivision 10 as added by section 31 of part BB of chap-
ter 56 of the laws of 2015, is amended to read as follows:
  §  970-r. State assistance for brownfield opportunity areas. 1.  Defi-
nitions. a. "Applicant" shall mean  the  municipality,  community  board
and/or  community  based  organization  submitting an application in the
manner authorized by this section.
  b. "Commissioner" shall mean the commissioner  of  the  department  of
environmental conservation.
  c.  "Community  based organization" shall mean a not-for-profit corpo-
ration exempt from taxation under  section  501(c)(3)  of  the  internal
revenue code whose stated mission is promoting reuse of brownfield sites
OR  COMMUNITY REVITALIZATION within a specified geographic area in which
the community based  organization  is  located;  which  has  twenty-five
percent  or  more of its board of directors residing in the community in
such area; and represents a  community  with  a  demonstrated  financial
need.  "Community based organization" shall not include any not-for-pro-
fit corporation that has caused or contributed to the release or threat-
ened release of a contaminant from or onto the brownfield site,  or  any
not-for-profit  corporation that generated, transported, or disposed of,
or that arranged for, or  caused,  the  generation,  transportation,  or
disposal  of  contamination from or onto the brownfield site. This defi-
nition shall not apply if more than twenty-five percent of the  members,
officers  or  directors  of  the  not-for-profit corporation are or were
employed or receiving compensation from any  person  responsible  for  a
site  under  title thirteen or title fourteen of article twenty-seven of
the environmental conservation law, article twelve of the navigation law
or under applicable principles of statutory or common law liability.
  d. "Brownfield site" shall have the  same  meaning  as  set  forth  in
section 27-1405 of the environmental conservation law.
  e. "Department" shall mean the department of state.
  f.  "Contamination"  or  "contaminated" shall have the same meaning as
provided in section 27-1405 of the environmental conservation law.
  g. "Municipality" shall have the same meaning as set forth in subdivi-
sion fifteen of section 56-0101 of the environmental conservation law.
  h. "Community board" shall have the  same  meaning  as  set  forth  in
section twenty-eight hundred of the New York city charter.
  i. "Secretary" shall mean the secretary of state.
  J.  "NOMINATION"  SHALL  MEAN  A STUDY, ANALYSIS, OUTLINE, AND WRITTEN
PLAN FOR REDEVELOPMENT AND REVITALIZATION OF ANY  AREA  WHEREIN  ONE  OR
MORE  KNOWN  OR  SUSPECTED  BROWNFIELD  SITES ARE LOCATED, THAT CONTAINS
THOSE ELEMENTS REQUIRED BY  THE  SECRETARY  PURSUANT  TO  THIS  SECTION,
WHETHER  OR NOT SUCH NOMINATION WAS FUNDED PURSUANT TO THIS SECTION, AND
THAT IS SUBMITTED TO THE SECRETARY  AS  A  PREREQUISITE  FOR  BROWNFIELD
OPPORTUNITY AREA DESIGNATION IN ACCORDANCE WITH THE CRITERIA ESTABLISHED
BY THIS SECTION.
  2.  [State assistance for pre-nomination study for brownfield opportu-
nity areas. a. Within the limits of appropriations therefor, the  secre-
tary is authorized to provide, on a competitive basis, financial assist-
ance  to  municipalities, to community based organizations, to community
boards, or to municipalities and community based organizations acting in
cooperation to prepare a pre-nomination study for a brownfield  opportu-
nity area designation. Such financial assistance shall not exceed ninety
percent of the costs of such pre-nomination study for any such area.

S. 7508                            101                           A. 9508

  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 opportunity
area and whether the owners are participating in the brownfield opportu-
nity area 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.
  c. Funding preferences shall be given to applications for such assist-
ance that relate to areas having one or more of the following character-
istics:
  (1)  areas  for  which the application is a partnered application by a
municipality and a community based organization;
  (2) areas with concentrations of known or suspected brownfield sites;
  (3) areas for which the application demonstrates support from a  muni-
cipality and a community based organization;
  (4)  areas showing indicators of economic distress including low resi-
dent  incomes,  high  unemployment,  high  commercial   vacancy   rates,
depressed property values; and
  (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.
  d. The secretary, upon the receipt of an application for such  assist-
ance  from  a  community  based organization not in cooperation with the
local government having jurisdiction over the proposed brownfield oppor-
tunity area, shall request the municipal government to review and  state
the  municipal  government's  support  or lack of support. The municipal
government's statement shall be considered a part of the application.
  e. Each application for assistance shall be submitted to the secretary
in a format, and containing  such  information,  as  prescribed  by  the
secretary but shall include, at a minimum, the following:
  (1)  a statement of the rationale or relationship between the proposed
assistance and the criteria set forth in this subdivision for the evalu-
ation and ranking of assistance applications;
  (2) the processes by which local participation in the  development  of
the application has been sought;
  (3) the process to be carried out with the state assistance including,
but  not  limited  to,  the goals of and budget for the effort, the work
plan and timeline for the attainment of these goals,  and  the  intended
process for community participation in the process;
  (4)  the  manner  and  extent to which public or governmental agencies
with jurisdiction over issues that will be addressed in the data gather-
ing process will be involved in this process;
  (5) other planning and development initiatives proposed or in progress
in the proposed brownfield opportunity area; and

S. 7508                            102                           A. 9508

  (6) for each community based organization which is an applicant  or  a
co-applicant, a copy of its determination of tax exempt status issued by
the  federal  internal  revenue  service  pursuant to section 501 of the
internal revenue code, a description of  the  relationship  between  the
community  based  organization  and  the area that is the subject of the
application, its financial and institutional accountability, its experi-
ence in conducting and completing planning initiatives  and  in  working
with the local government associated with the proposed brownfield oppor-
tunity area.
  f. Prior to making an award for assistance, the secretary shall notify
the temporary president of the senate and speaker of the assembly.
  g.  Following  notification  to the applicant that assistance has been
awarded, and prior  to  disbursement  of  funds,  a  contract  shall  be
executed  between the department and the applicant or co-applicants. The
secretary shall establish terms and conditions for such contracts as the
secretary deems appropriate, including provisions to define: applicant's
work scope, work schedule, and deliverables; fiscal reports on  budgeted
and  actual  use of funds expended; and requirements for submission of a
final fiscal report. The contract shall also require the distribution of
work products to the department, and, for community based organizations,
to the applicant's municipality. Applicants shall be  required  to  make
the results publicly available.
  3.]  State assistance for nominations to designate brownfield opportu-
nity areas. a. Within the limits of appropriations therefor, the  secre-
tary is authorized to provide, on a competitive basis, financial assist-
ance  to  municipalities, to community based organizations, to community
boards, or to municipalities and community based organizations acting in
cooperation to prepare a nomination  for  designation  of  a  brownfield
opportunity  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  devel-
oped  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.]
  b. An application for such financial assistance shall include an indi-
cation of support from owners of brownfield sites in the proposed brown-
field  opportunity  area.  All  residents  and  property  owners  in the
proposed brownfield opportunity area shall receive notice in  such  form
and manner as the secretary shall prescribe.
  c.  No  application  for such financial assistance shall be considered
unless the applicant demonstrates that it has,  to  the  maximum  extent
practicable,  solicited  and  considered  the  views of residents of the
proposed brownfield opportunity area, the views of state and local offi-
cials elected to represent such residents and  the  local  organizations
representing such residents.
  d.  Activities  eligible  to  receive  such financial assistance shall
include  the  identification,  preparation,  creation,  development  and
assembly  of information and elements to be included in a nomination for
designation of a brownfield opportunity area[,].
  E. A NOMINATION FOR DESIGNATION OF A BROWNFIELD OPPORTUNITY AREA SHALL
CONTAIN SUCH ELEMENTS AS DETERMINED BY THE SECRETARY OF STATE, including
but not limited to:
  (1) the borders of the proposed brownfield opportunity area;

S. 7508                            103                           A. 9508

  (2) [the] AN INVENTORY OF KNOWN OR SUSPECTED BROWNFIELD SITES, INCLUD-
ING location AND SIZE of each known or suspected brownfield site in  the
proposed brownfield opportunity area;
  (3)  the  identification of strategic sites within the proposed brown-
field opportunity area;
  (4) the type of potential developments anticipated  for  sites  within
the  proposed brownfield opportunity area proposed by either the current
or the prospective owners of such sites;
  (5) local legislative or regulatory action which may  be  required  to
implement a plan for the redevelopment of the proposed brownfield oppor-
tunity area;
  (6)  priorities  for  public and private investment in infrastructure,
open space, economic development, housing, or  community  facilities  in
the proposed brownfield opportunity area;
  (7) IDENTIFICATION, DISCUSSION, AND mapping of current and anticipated
uses of the properties and groundwater in the proposed brownfield oppor-
tunity area;
  (8)  existing detailed assessments of individual brownfield sites and,
where the consent of the site owner has  been  obtained,  the  need  for
conducting on-site assessments;
  (9) known data about the environmental conditions of properties in the
proposed brownfield opportunity area;
  (10)  ownership of the KNOWN OR SUSPECTED BROWNFIELD properties in the
proposed brownfield opportunity area;
  (11) descriptions of possible remediation strategies,  REUSE  OPPORTU-
NITIES,  brownfield redevelopment, necessary infrastructure improvements
and other public or private measures  needed  to  stimulate  investment,
promote  revitalization,  and enhance community health and environmental
conditions;
  (12) the goals and objectives, both short term and long term, for  the
economic  revitalization  of  the  proposed brownfield opportunity area;
[and]
  (13) the publicly controlled and other developable lands and buildings
within the proposed brownfield opportunity area which are  or  could  be
made    available    for    residential,   industrial   and   commercial
development[.]; AND
  (14) A COMMUNITY PARTICIPATION STRATEGY TO SOLICIT  AND  CONSIDER  THE
VIEWS  OF  RESIDENTS,  BUSINESSES AND OTHER STAKEHOLDERS OF THE PROPOSED
BROWNFIELD OPPORTUNITY AREA.
  [e.] F. Funding preferences shall be given to  applications  for  such
assistance  that  relate  to  areas  having one or more of the following
characteristics:
  (1) areas for which the application is a partnered  application  by  a
municipality and a community based organization;
  (2) areas with concentrations of known or suspected brownfield sites;
  (3)  areas for which the application demonstrates support from a muni-
cipality and a community based organization;
  (4) areas showing indicators of economic distress including low  resi-
dent   incomes,   high  unemployment,  high  commercial  vacancy  rates,
depressed property values; and
  (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.
  [f.] G. Each application for such assistance shall be submitted to the
secretary in a format, and containing such information, as prescribed by
the secretary but shall include, at a minimum, the following:

S. 7508                            104                           A. 9508

  (1)  a statement of the rationale or relationship between the proposed
assistance and the criteria set forth in this section for the evaluation
and ranking of assistance applications;
  (2)  the  processes by which local participation in the development of
the application has been sought;
  (3) the process to be carried out under the state  assistance  includ-
ing,  but  not  limited  to, the goals of and budget for the effort, the
work plan and timeline for  the  attainment  of  these  goals,  and  the
intended process for public participation in the process;
  (4)  the  manner  and  extent to which public or governmental agencies
with jurisdiction over issues that will be addressed in the data gather-
ing process will be involved in this process;
  (5) other planning and development initiatives proposed or in progress
in the proposed brownfield opportunity area;
  (6) for each community based organization which is an applicant  or  a
co-applicant, a copy of its determination of tax exempt status issued by
the  federal  internal  revenue  service  pursuant to section 501 of the
internal revenue code, a description of  the  relationship  between  the
community  based  organization  and  the area that is the subject of the
application, its financial and institutional accountability, its experi-
ence in conducting and completing planning initiatives  and  in  working
with the local government associated with the proposed brownfield oppor-
tunity area; and
  (7)  the  financial  commitments the applicant will make to the brown-
field opportunity area for activities including,  but  not  limited  to,
marketing  of the area for business development, human resource services
for residents and businesses in the  brownfield  opportunity  area,  and
services for small and minority and women-owned businesses.
  [g.  The secretary, upon the receipt of an] H. AN application for such
assistance from a community based organization not in  cooperation  with
the  local  government  having jurisdiction over the proposed brownfield
opportunity area, shall [request the municipal government to review  and
state  the  municipal government's support or lack of support] INCLUDE A
STATEMENT OF SUPPORT FROM THE CITY, TOWN, OR VILLAGE WITH  PLANNING  AND
LAND USE AUTHORITY IN WHICH THE BROWNFIELD OPPORTUNITY AREA IS PROPOSED.
The  [municipal government's] statement FROM SUCH CITY, TOWN, OR VILLAGE
shall be considered a part of the application.
  [h.] I. Prior to making an award for assistance, the  secretary  shall
notify  the  temporary president of the senate and speaker of the assem-
bly.
  [i.] J. Following notification to the applicant  that  assistance  has
been  awarded,  and  prior to disbursement of funds, a contract shall be
executed between the department and the applicant or co-applicants.  The
secretary shall establish terms and conditions for such contracts as the
secretary deems appropriate, including provisions to define: applicant's
work  scope, work schedule, and deliverables; fiscal reports on budgeted
and actual use of funds expended; and requirements for submission  of  a
final fiscal report. The contract shall also require the distribution of
work products to the department, and, for community based organizations,
to  the  applicant's  municipality. Applicants shall be required to make
the results publicly available. Such contract shall  further  include  a
provision providing that if any responsible party payments become avail-
able  to  the  applicant,  the  amount  of such payments attributable to
expenses paid by the award shall be paid to the department by the appli-
cant; provided that the applicant may first apply such responsible party
payments toward any actual project costs incurred by the applicant.

S. 7508                            105                           A. 9508

  3. STATE ASSISTANCE FOR ACTIVITIES TO ADVANCE  BROWNFIELD  OPPORTUNITY
AREA REVITALIZATION. WITHIN AMOUNTS APPROPRIATED THEREFOR, THE SECRETARY
IS  AUTHORIZED  TO PROVIDE, ON A COMPETITIVE BASIS, FINANCIAL ASSISTANCE
TO MUNICIPALITIES, TO COMMUNITY BASED  ORGANIZATIONS,  OR  TO  COMMUNITY
BOARDS  TO  CONDUCT  PREDEVELOPMENT AND OTHER ACTIVITIES WITHIN A DESIG-
NATED OR PROPOSED BROWNFIELD OPPORTUNITY AREA TO ADVANCE THE  GOALS  AND
PRIORITIES  SET  FORTH  IN  A  NOMINATION  AS  DEFINED  PURSUANT TO THIS
SECTION. SUCH FINANCIAL ASSISTANCE SHALL NOT EXCEED  NINETY  PERCENT  OF
THE  COSTS  OF  SUCH  ACTIVITIES.  ACTIVITIES  ELIGIBLE  TO RECEIVE SUCH
ASSISTANCE SHALL INCLUDE: DEVELOPMENT AND  IMPLEMENTATION  OF  MARKETING
STRATEGIES;   DEVELOPMENT  OF  PLANS  AND  SPECIFICATIONS;  REAL  ESTATE
SERVICES; BUILDING CONDITION STUDIES;  INFRASTRUCTURE  ANALYSES;  ZONING
AND  REGULATORY  UPDATES;  ENVIRONMENTAL,  HOUSING AND ECONOMIC STUDIES,
ANALYSES AND REPORTS; PUBLIC OUTREACH; BUILDING OF LOCAL  CAPACITY;  AND
OTHER ACTIVITIES AS DETERMINED BY THE SECRETARY.
  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-
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.
  5.  Priority  and preference. The designation of a brownfield opportu-
nity area pursuant to this section is intended to serve  as  a  planning
tool.   It alone shall not impose any new obligations on any property or
property owner. To the extent authorized by law, projects in  brownfield
opportunity  areas  designated  pursuant to this section shall receive a
priority and preference when considered for financial assistance  pursu-
ant  to articles fifty-four and fifty-six of the environmental conserva-
tion law. To the extent authorized by law, projects in brownfield oppor-
tunity areas designated pursuant to this section may receive a  priority
and  preference when considered for financial assistance pursuant to any
other state, federal or local law.
  6. State assistance for  brownfield  site  assessments  in  brownfield
opportunity  areas. a. Within the limits of appropriations therefor, the
secretary of state, is authorized to provide, on  a  competitive  basis,
financial  assistance  to  municipalities,  to community based organiza-
tions, to community boards, or to  municipalities  and  community  based
organizations  acting  in cooperation to conduct brownfield site assess-
ments. Such financial assistance shall not exceed ninety percent of  the
costs of such brownfield site assessment.
  b.  Brownfield  sites  eligible for such assistance must be owned by a
municipality, or volunteer as such term is defined in section 27-1405 of
the environmental conservation law.
  c. Brownfield site assessment activities eligible for funding include,
but are not limited to, testing of properties to  determine  the  nature
and  extent of the contamination (including soil and groundwater), envi-
ronmental assessments, the development of a proposed remediation strate-
gy to address any identified contamination,  and  any  other  activities
deemed  appropriate  by the commissioner in consultation with the secre-
tary of state. Any environmental assessment  shall  be  subject  to  the
review and approval of such commissioner.

S. 7508                            106                           A. 9508

  d.  Applications for such assistance shall be submitted to the commis-
sioner in a format, and containing such information,  as  prescribed  by
the commissioner in consultation with the secretary of state.
  e. Funding preferences shall be given to applications for such assist-
ance that relate to areas having one or more of the following character-
istics:
  (1)  areas  for  which the application is a partnered application by a
municipality and a community based organization;
  (2) areas with concentrations of known or suspected brownfield sites;
  (3) areas for which the application demonstrates support from a  muni-
cipality and a community based organization;
  (4)  areas showing indicators of economic distress including low resi-
dent  incomes,  high  unemployment,  high  commercial   vacancy   rates,
depressed property values; and
  (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.
  f. The commissioner, upon the  receipt  of  an  application  for  such
assistance  from  a community based organization not in cooperation with
the local government having jurisdiction over  the  proposed  brownfield
opportunity  area,  shall request the municipal government to review and
state the municipal government's support or lack of support. The munici-
pal government's statement shall be considered a part  of  the  applica-
tion.
  g.  Prior  to  making  an award for assistance, the commissioner shall
notify the temporary president of the senate  and  the  speaker  of  the
assembly.
  h.  Following  notification  to the applicant that assistance has been
awarded, and prior  to  disbursement  of  funds,  a  contract  shall  be
executed  between the department and the applicant or co-applicants. The
commissioner shall establish terms and conditions for such contracts  as
the commissioner deems appropriate in consultation with the secretary of
state,  including  provisions  to  define:  applicant's work scope, work
schedule, and deliverables; fiscal reports on budgeted and actual use of
funds expended; and  requirements  for  submission  of  a  final  fiscal
report.  The  contract  shall  also  require  the  distribution  of work
products to the department, and, for community based  organizations,  to
the  applicant's  municipality. Applicants shall be required to make the
results publicly  available.  Such  contract  shall  further  include  a
provision providing that if any responsible party payments become avail-
able  to  the  applicant,  the  amount  of such payments attributable to
expenses paid by the award shall be paid to the department by the appli-
cant; provided that the applicant may first apply such responsible party
payments towards actual project costs incurred by the applicant.
  7. Amendments to designated area. Any proposed amendment to  a  brown-
field  opportunity  area  designated  pursuant  to this section shall be
proposed, and reviewed by the secretary, in the same  manner  and  using
the same criteria set forth in this section and applicable to an initial
nomination for the designation of a brownfield opportunity area.
  8.  Applications FOR BROWNFIELD OPPORTUNITY AREA DESIGNATION. [a.] All
applications for [pre-nomination study assistance or  applications  for]
designation  of a brownfield opportunity area shall demonstrate that the
following community participation activities  have  been  [or  will  be]
performed [by the applicant] IN DEVELOPMENT OF THE NOMINATION:
  (1)  identification  of  the  interested  public  and preparation of a
contact list;

S. 7508                            107                           A. 9508

  (2) identification of major issues of public concern;
  (3)  [provision to] PUBLIC access to (I) the [draft and final applica-
tion for pre-nomination assistance and] NOMINATION  FOR  DESIGNATION  OF
THE  brownfield  opportunity area [designation], AND (II) ANY supporting
documents in a manner [convenient to the public] AS THE SECRETARY  SHALL
PRESCRIBE;
  (4)  public notice and newspaper notice of (i) the intent of the muni-
cipality and/or community based organization to [undertake a pre-nomina-
tion process or prepare] NOMINATE a brownfield opportunity  area  [plan]
FOR DESIGNATION, and (ii) the availability of such application[.
  b.  Application  for nomination of a brownfield opportunity area shall
provide the following minimum community participation activities:];
  [(1)] (5) a comment period of at least thirty days on a draft applica-
tion; AND
  [(2)] (6) a public meeting on a brownfield  opportunity  area  [draft]
application FOR DESIGNATION.
  9.  Financial  assistance;  advance payment. Notwithstanding any other
law to the contrary,  financial  assistance  pursuant  to  this  section
provided  by  the commissioner and the secretary pursuant to an executed
contract may include an advance payment up to twenty-five percent of the
contract amount.
  10. The secretary shall establish criteria for brownfield  opportunity
area  conformance determinations for purposes of the brownfield redevel-
opment tax credit component pursuant to clause (ii) of subparagraph  (B)
of  paragraph [(5)] FIVE of subdivision (a) of section twenty-one of the
tax law. In establishing criteria, the secretary shall be guided by, but
not limited to, the following considerations: how the proposed  use  and
development  advances  the designated brownfield opportunity area plan's
vision statement, goals  and  objectives  for  revitalization;  how  the
density  of development and associated buildings and structures advances
the plan's objectives, desired redevelopment and priorities for  invest-
ment;  and how the project complies with zoning and other local laws and
standards to guide and ensure appropriate use of the project site.
  § 2. This act shall take effect immediately.

                                 PART V

  Section 1. Section 159-j of the executive law is REPEALED.
  § 2. This act shall take effect October 1, 2018.

                                 PART W

  Section 1. This act enacts into law major  components  of  legislation
relating  to student loan servicers and student debt relief consultants.
Each component is  wholly  contained  within  a  Subpart  identified  as
Subparts  A  through C. The effective date for each particular provision
contained within such Subpart is set forth in the last section  of  such
Subpart.  Any  provision  in  any  section  contained  within a Subpart,
including the effective date of the Subpart, which makes 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 Subpart in which it is found.

                                SUBPART A

S. 7508                            108                           A. 9508

  Section  1. The banking law is amended by adding a new article 14-A to
read as follows:
                              ARTICLE XIV-A
                         STUDENT LOAN SERVICERS
SECTION 710. DEFINITIONS.
        711. LICENSING.
        712. APPLICATION FOR A STUDENT LOAN SERVICER LICENSE; FEES.
        713. APPLICATION  PROCESS  TO  RECEIVE  LICENSE TO ENGAGE IN THE
               BUSINESS OF STUDENT LOAN SERVICING.
        714. CHANGES IN OFFICERS AND DIRECTORS.
        715. CHANGES IN CONTROL.
        716. GROUNDS FOR SUSPENSION OR REVOCATION OF LICENSE.
        717. BOOKS AND RECORDS; REPORTS AND ELECTRONIC FILING.
        718. RULES AND REGULATIONS.
        719. PROHIBITED PRACTICES.
        720. SERVICING STUDENT LOANS WITHOUT A LICENSE.
        721. RESPONSIBILITIES.
        722. EXAMINATIONS.
        723. PENALTIES FOR VIOLATION OF THIS ARTICLE.
        724. SEVERABILITY OF PROVISIONS.
        725. COMPLIANCE WITH OTHER LAWS.
  § 710. DEFINITIONS. 1. "APPLICANT" SHALL MEAN ANY PERSON APPLYING  FOR
A LICENSE TO BE A STUDENT LOAN SERVICER.
  2. "BORROWER" SHALL MEAN ANY RESIDENT OF THIS STATE WHO HAS RECEIVED A
STUDENT  LOAN  OR  AGREED IN WRITING TO PAY A STUDENT LOAN OR ANY PERSON
WHO SHARES A LEGAL OBLIGATION WITH SUCH RESIDENT FOR REPAYING A  STUDENT
LOAN.
  3. "BORROWER BENEFIT" SHALL MEAN AN INCENTIVE OFFERED TO A BORROWER IN
CONNECTION  WITH  THE  ORIGINATION  OF A STUDENT LOAN, INCLUDING BUT NOT
LIMITED TO AN INTEREST RATE REDUCTION, PRINCIPAL REBATE, FEE  WAIVER  OR
REBATE, LOAN CANCELLATION, OR COSIGNER RELEASE.
  4.  "EXEMPT ORGANIZATION" SHALL MEAN ANY BANKING ORGANIZATION, FOREIGN
BANKING CORPORATION, NATIONAL BANK, FEDERAL SAVINGS ASSOCIATION, FEDERAL
CREDIT UNION, OR ANY BANK, TRUST COMPANY, SAVINGS BANK, SAVINGS AND LOAN
ASSOCIATION, OR CREDIT UNION ORGANIZED  UNDER  THE  LAWS  OF  ANY  OTHER
STATE,  OR  ANY PERSON LICENSED OR SUPERVISED BY THE DEPARTMENT EXEMPTED
BY THE SUPERINTENDENT PURSUANT TO REGULATIONS PROMULGATED IN  ACCORDANCE
WITH THIS ARTICLE.
  5.  "PERSON"  SHALL  MEAN  ANY  INDIVIDUAL,  ASSOCIATION, CORPORATION,
LIMITED LIABILITY COMPANY, PARTNERSHIP, TRUST, UNINCORPORATED  ORGANIZA-
TION, GOVERNMENT, AND ANY OTHER ENTITY.
  6.  "SERVICER" OR "STUDENT LOAN SERVICER" SHALL MEAN A PERSON LICENSED
PURSUANT TO SECTION SEVEN HUNDRED ELEVEN OF THIS ARTICLE  TO  ENGAGE  IN
THE BUSINESS OF SERVICING ANY STUDENT LOAN OF A BORROWER.
  7. "SERVICING" SHALL MEAN:
  (A) RECEIVING ANY PAYMENT FROM A BORROWER PURSUANT TO THE TERMS OF ANY
STUDENT LOAN;
  (B) APPLYING ANY PAYMENT TO A BORROWER'S ACCOUNT PURSUANT TO THE TERMS
OF  A  STUDENT  LOAN OR THE CONTRACT GOVERNING THE SERVICING OF ANY SUCH
LOAN;
  (C) PROVIDING ANY NOTIFICATION OF AMOUNTS OWED ON A STUDENT LOAN BY OR
ON ACCOUNT OF ANY BORROWER;
  (D) DURING A PERIOD WHEN A BORROWER IS NOT REQUIRED TO MAKE A  PAYMENT
ON  A STUDENT LOAN, MAINTAINING ACCOUNT RECORDS FOR THE STUDENT LOAN AND
COMMUNICATING WITH THE BORROWER REGARDING THE STUDENT LOAN ON BEHALF  OF
THE OWNER OF THE STUDENT LOAN PROMISSORY NOTE;

S. 7508                            109                           A. 9508

  (E)  INTERACTING  WITH  A  BORROWER  WITH  RESPECT TO OR REGARDING ANY
ATTEMPT TO AVOID DEFAULT ON THE BORROWER'S STUDENT LOAN, OR FACILITATING
THE ACTIVITIES DESCRIBED IN PARAGRAPH (A) OR (B) OF THIS SUBDIVISION; OR
  (F) PERFORMING OTHER ADMINISTRATIVE SERVICES WITH RESPECT TO A BORROW-
ER'S STUDENT LOAN.
  8. "STUDENT LOAN" SHALL MEAN ANY LOAN TO A BORROWER TO FINANCE POSTSE-
CONDARY EDUCATION OR EXPENSES RELATED TO POSTSECONDARY EDUCATION.
  § 711. LICENSING. 1. NO PERSON SHALL ENGAGE IN THE BUSINESS OF SERVIC-
ING  STUDENT  LOANS OWED BY ONE OR MORE BORROWERS RESIDING IN THIS STATE
WITHOUT FIRST BEING LICENSED BY THE SUPERINTENDENT  AS  A  STUDENT  LOAN
SERVICER  IN ACCORDANCE WITH THIS ARTICLE AND SUCH REGULATIONS AS MAY BE
PRESCRIBED BY THE SUPERINTENDENT.
  2. THE LICENSING PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO ANY
EXEMPT ORGANIZATION; PROVIDED THAT SUCH EXEMPT ORGANIZATION NOTIFIES THE
SUPERINTENDENT THAT IT IS ACTING AS A  STUDENT  LOAN  SERVICER  IN  THIS
STATE  AND  COMPLIES  WITH  SECTIONS  SEVEN  HUNDRED  NINETEEN AND SEVEN
HUNDRED TWENTY-ONE OF THIS ARTICLE  AND  ANY  REGULATION  APPLICABLE  TO
STUDENT LOAN SERVICERS PROMULGATED BY THE SUPERINTENDENT.
  §  712. APPLICATION FOR A STUDENT LOAN SERVICER LICENSE; FEES. 1.  THE
APPLICATION FOR A LICENSE TO BE A STUDENT  LOAN  SERVICER  SHALL  BE  IN
WRITING,  UNDER  OATH, AND IN THE FORM PRESCRIBED BY THE SUPERINTENDENT.
NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW OR  ANY  OTHER
LAW  TO THE CONTRARY, THE SUPERINTENDENT MAY REQUIRE THAT AN APPLICATION
FOR A LICENSE OR ANY OTHER SUBMISSION OR APPLICATION FOR APPROVAL AS MAY
BE REQUIRED BY THIS ARTICLE BE MADE OR EXECUTED BY ELECTRONIC  MEANS  IF
HE  OR  SHE  DEEMS  IT  NECESSARY  TO ENSURE THE EFFICIENT AND EFFECTIVE
ADMINISTRATION  OF  THIS  ARTICLE.  THE  APPLICATION  SHALL  INCLUDE   A
DESCRIPTION  OF  THE ACTIVITIES OF THE APPLICANT, IN SUCH DETAIL AND FOR
SUCH PERIODS AS THE SUPERINTENDENT MAY REQUIRE, INCLUDING:
  (A) AN AFFIRMATION OF FINANCIAL SOLVENCY  NOTING  SUCH  CAPITALIZATION
REQUIREMENTS  AS  MAY  BE  REQUIRED BY THE SUPERINTENDENT, AND ACCESS TO
SUCH CREDIT AS MAY BE REQUIRED BY THE SUPERINTENDENT;
  (B) A FINANCIAL STATEMENT PREPARED BY A CERTIFIED  PUBLIC  ACCOUNTANT,
THE  ACCURACY  OF WHICH IS SWORN TO UNDER OATH BEFORE A NOTARY PUBLIC BY
AN OFFICER OR OTHER REPRESENTATIVE OF THE APPLICANT WHO IS AUTHORIZED TO
EXECUTE SUCH DOCUMENTS;
  (C) AN AFFIRMATION THAT THE APPLICANT, OR ITS MEMBERS, OFFICERS, PART-
NERS, DIRECTORS AND PRINCIPALS AS MAY BE APPROPRIATE, ARE AT LEAST TWEN-
TY-ONE YEARS OF AGE;
  (D) INFORMATION AS TO THE CHARACTER, FITNESS, FINANCIAL  AND  BUSINESS
RESPONSIBILITY,  BACKGROUND  AND  EXPERIENCES  OF  THE APPLICANT, OR ITS
MEMBERS, OFFICERS, PARTNERS, DIRECTORS AND PRINCIPALS AS MAY  BE  APPRO-
PRIATE;
  (E)  ANY  ADDITIONAL DETAIL OR INFORMATION REQUIRED BY THE SUPERINTEN-
DENT.
  2. AN APPLICATION TO BECOME A STUDENT LOAN SERVICER OR ANY APPLICATION
WITH RESPECT TO A STUDENT LOAN SERVICER SHALL BE ACCOMPANIED BY A FEE AS
PRESCRIBED PURSUANT TO SECTION EIGHTEEN-A OF THIS CHAPTER.
  § 713. APPLICATION PROCESS TO RECEIVE LICENSE TO ENGAGE IN  THE  BUSI-
NESS OF STUDENT LOAN SERVICING. 1. UPON THE FILING OF AN APPLICATION FOR
A LICENSE, IF THE SUPERINTENDENT SHALL FIND THAT THE FINANCIAL RESPONSI-
BILITY, EXPERIENCE, CHARACTER, AND GENERAL FITNESS OF THE APPLICANT AND,
IF APPLICABLE, THE MEMBERS, OFFICERS, PARTNERS, DIRECTORS AND PRINCIPALS
OF  THE APPLICANT ARE SUCH AS TO COMMAND THE CONFIDENCE OF THE COMMUNITY
AND TO WARRANT BELIEF THAT THE BUSINESS WILL BE OPERATED HONESTLY, FAIR-
LY, AND EFFICIENTLY WITHIN THE PURPOSE OF THIS ARTICLE, THE  SUPERINTEN-

S. 7508                            110                           A. 9508

DENT SHALL THEREUPON ISSUE A LICENSE IN DUPLICATE TO ENGAGE IN THE BUSI-
NESS  OF  SERVICING STUDENT LOANS DESCRIBED IN SECTION SEVEN HUNDRED TEN
OF THIS ARTICLE IN ACCORDANCE WITH THE PROVISIONS OF  THIS  ARTICLE.  IF
THE SUPERINTENDENT SHALL NOT SO FIND, THE SUPERINTENDENT SHALL NOT ISSUE
A  LICENSE,  AND  THE  SUPERINTENDENT SHALL SO NOTIFY THE APPLICANT. THE
SUPERINTENDENT SHALL TRANSMIT ONE COPY OF A LICENSE TO THE APPLICANT AND
FILE ANOTHER IN THE OFFICE OF THE DEPARTMENT.    UPON  RECEIPT  OF  SUCH
LICENSE,  A  STUDENT  LOAN SERVICER SHALL BE AUTHORIZED TO ENGAGE IN THE
BUSINESS OF SERVICING STUDENT LOANS IN ACCORDANCE WITH THE PROVISIONS OF
THIS ARTICLE. SUCH LICENSE SHALL REMAIN IN FULL FORCE AND  EFFECT  UNTIL
IT IS SURRENDERED BY THE SERVICER OR REVOKED OR SUSPENDED AS HEREINAFTER
PROVIDED.
  2.  THE  SUPERINTENDENT MAY REFUSE TO ISSUE A LICENSE PURSUANT TO THIS
ARTICLE IF HE OR SHE SHALL FIND THAT THE APPLICANT, OR ANY PERSON WHO IS
A DIRECTOR,  OFFICER,  PARTNER,  AGENT,  EMPLOYEE,  MEMBER,  SUBSTANTIAL
STOCKHOLDER OF THE APPLICANT:
  (A)  HAS  BEEN  CONVICTED  OF A CRIME INVOLVING AN ACTIVITY WHICH IS A
FELONY UNDER THIS CHAPTER OR UNDER ARTICLE ONE HUNDRED  FIFTY-FIVE,  ONE
HUNDRED  SEVENTY, ONE HUNDRED SEVENTY-FIVE, ONE HUNDRED SEVENTY-SIX, ONE
HUNDRED EIGHTY, ONE HUNDRED EIGHTY-FIVE, ONE HUNDRED  EIGHTY-SEVEN,  ONE
HUNDRED  NINETY, TWO HUNDRED, TWO HUNDRED TEN OR FOUR HUNDRED SEVENTY OF
THE PENAL LAW OR ANY COMPARABLE FELONY UNDER THE LAWS OF ANY OTHER STATE
OR THE UNITED STATES, PROVIDED THAT SUCH CRIME  WOULD  BE  A  FELONY  IF
COMMITTED AND PROSECUTED UNDER THE LAWS OF THIS STATE;
  (B) HAS HAD A LICENSE OR REGISTRATION REVOKED BY THE SUPERINTENDENT OR
ANY OTHER REGULATOR OR JURISDICTION;
  (C)  HAS  BEEN  AN  OFFICER,  DIRECTOR, PARTNER, MEMBER OR SUBSTANTIAL
STOCKHOLDER OF AN ENTITY WHICH HAS HAD A LICENSE OR REGISTRATION REVOKED
BY THE SUPERINTENDENT OR ANY OTHER REGULATOR OR JURISDICTION; OR
  (D) HAS BEEN AN AGENT, EMPLOYEE, OFFICER, DIRECTOR, PARTNER OR  MEMBER
OF  AN  ENTITY  WHICH  HAS  HAD A LICENSE OR REGISTRATION REVOKED BY THE
SUPERINTENDENT WHERE SUCH PERSON SHALL HAVE BEEN  FOUND  BY  THE  SUPER-
INTENDENT TO BEAR RESPONSIBILITY IN CONNECTION WITH THE REVOCATION.
  3.  THE  TERM  "SUBSTANTIAL STOCKHOLDER", AS USED IN THIS SUBDIVISION,
SHALL BE DEEMED TO REFER TO A PERSON OWNING OR CONTROLLING  DIRECTLY  OR
INDIRECTLY  TEN  PER  CENTUM OR MORE OF THE TOTAL OUTSTANDING STOCK OF A
CORPORATION.
  § 714. CHANGES IN OFFICERS AND DIRECTORS. UPON ANY CHANGE  OF  ANY  OF
THE  EXECUTIVE  OFFICERS,  DIRECTORS, PARTNERS OR MEMBERS OF ANY STUDENT
LOAN SERVICER, THE STUDENT LOAN SERVICER SHALL SUBMIT TO THE SUPERINTEN-
DENT THE NAME, ADDRESS, AND OCCUPATION OF EACH  NEW  OFFICER,  DIRECTOR,
PARTNER OR MEMBER, AND PROVIDE SUCH OTHER INFORMATION AS THE SUPERINTEN-
DENT MAY REQUIRE.
  §  715.  CHANGES  IN CONTROL. 1. IT SHALL BE UNLAWFUL, EXCEPT WITH THE
PRIOR APPROVAL OF THE SUPERINTENDENT, FOR ANY ACTION TO BE  TAKEN  WHICH
RESULTS  IN A CHANGE OF CONTROL OF THE BUSINESS OF A STUDENT LOAN SERVI-
CER. PRIOR TO ANY CHANGE OF CONTROL, THE PERSON  DESIROUS  OF  ACQUIRING
CONTROL  OF  THE  BUSINESS OF A STUDENT LOAN SERVICER SHALL MAKE WRITTEN
APPLICATION TO THE  SUPERINTENDENT  AND  PAY  AN  INVESTIGATION  FEE  AS
PRESCRIBED  PURSUANT TO SECTION EIGHTEEN-A OF THIS CHAPTER TO THE SUPER-
INTENDENT. THE APPLICATION SHALL CONTAIN SUCH INFORMATION AS THE  SUPER-
INTENDENT,  BY  RULE OR REGULATION, MAY PRESCRIBE AS NECESSARY OR APPRO-
PRIATE  FOR  THE  PURPOSE  OF  MAKING  THE  DETERMINATION  REQUIRED   BY
SUBDIVISION TWO OF THIS SECTION. THIS INFORMATION SHALL INCLUDE, BUT NOT
BE LIMITED TO, THE INFORMATION AND OTHER MATERIAL REQUIRED FOR A STUDENT

S. 7508                            111                           A. 9508

LOAN SERVICER BY SUBDIVISION ONE OF SECTION SEVEN HUNDRED TWELVE OF THIS
ARTICLE.
  2.  THE SUPERINTENDENT SHALL APPROVE OR DISAPPROVE THE PROPOSED CHANGE
OF CONTROL OF A STUDENT LOAN SERVICER IN ACCORDANCE WITH THE  PROVISIONS
OF SECTION SEVEN HUNDRED THIRTEEN OF THIS ARTICLE.
  3.  FOR  A PERIOD OF SIX MONTHS FROM THE DATE OF QUALIFICATION THEREOF
AND FOR SUCH  ADDITIONAL  PERIOD  OF  TIME  AS  THE  SUPERINTENDENT  MAY
PRESCRIBE,  IN  WRITING,  THE  PROVISIONS OF SUBDIVISIONS ONE AND TWO OF
THIS SECTION SHALL NOT APPLY TO A TRANSFER OF CONTROL  BY  OPERATION  OF
LAW  TO THE LEGAL REPRESENTATIVE, AS HEREINAFTER DEFINED, OF ONE WHO HAS
CONTROL OF A STUDENT LOAN SERVICER.  THEREAFTER,  SUCH  LEGAL  REPRESEN-
TATIVE  SHALL  COMPLY WITH THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF
THIS SECTION. THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS SECTION
SHALL BE APPLICABLE TO AN APPLICATION MADE UNDER THIS SECTION BY A LEGAL
REPRESENTATIVE. THE TERM "LEGAL REPRESENTATIVE",  FOR  THE  PURPOSES  OF
THIS  SUBDIVISION,  SHALL  MEAN  A  PERSON  DULY APPOINTED BY A COURT OF
COMPETENT JURISDICTION  TO  ACT  AS  EXECUTOR,  ADMINISTRATOR,  TRUSTEE,
COMMITTEE,  CONSERVATOR  OR RECEIVER, INCLUDING ONE WHO SUCCEEDS A LEGAL
REPRESENTATIVE AND ONE  ACTING  IN  AN  ANCILLARY  CAPACITY  THERETO  IN
ACCORDANCE WITH THE PROVISIONS OF SUCH COURT APPOINTMENT.
  4.  AS  USED  IN THIS SECTION THE TERM "CONTROL" MEANS THE POSSESSION,
DIRECTLY OR INDIRECTLY, OF THE POWER TO DIRECT OR CAUSE THE DIRECTION OF
THE MANAGEMENT AND POLICIES OF A STUDENT LOAN SERVICER, WHETHER  THROUGH
THE  OWNERSHIP OF VOTING STOCK OF SUCH STUDENT LOAN SERVICER, THE OWNER-
SHIP OF VOTING STOCK OF ANY PERSON WHICH POSSESSES SUCH POWER OR  OTHER-
WISE.  CONTROL  SHALL  BE  PRESUMED  TO EXIST IF ANY PERSON, DIRECTLY OR
INDIRECTLY, OWNS, CONTROLS OR HOLDS WITH POWER TO VOTE TEN PER CENTUM OR
MORE OF THE VOTING STOCK OF ANY STUDENT LOAN SERVICER OR OF  ANY  PERSON
WHICH  OWNS, CONTROLS OR HOLDS WITH POWER TO VOTE TEN PER CENTUM OR MORE
OF THE VOTING STOCK OF ANY STUDENT LOAN SERVICER, BUT NO PERSON SHALL BE
DEEMED TO CONTROL A STUDENT LOAN SERVICER SOLELY BY REASON OF  BEING  AN
OFFICER  OR  DIRECTOR  OF SUCH STUDENT LOAN SERVICER. THE SUPERINTENDENT
MAY IN HIS DISCRETION, UPON THE APPLICATION OF A STUDENT  LOAN  SERVICER
OR  ANY PERSON WHO, DIRECTLY OR INDIRECTLY, OWNS, CONTROLS OR HOLDS WITH
POWER TO VOTE OR SEEKS TO OWN, CONTROL OR HOLD WITH POWER  TO  VOTE  ANY
VOTING STOCK OF SUCH STUDENT LOAN SERVICER, DETERMINE WHETHER OR NOT THE
OWNERSHIP,  CONTROL OR HOLDING OF SUCH VOTING STOCK CONSTITUTES OR WOULD
CONSTITUTE CONTROL OF SUCH STUDENT LOAN SERVICER FOR  PURPOSES  OF  THIS
SECTION.
  §  716.  GROUNDS  FOR  SUSPENSION  OR  REVOCATION OF LICENSE. 1. AFTER
NOTICE AND A HEARING, THE  SUPERINTENDENT  MAY  REVOKE  ANY  LICENSE  TO
ENGAGE  IN  THE  BUSINESS  OF A STUDENT LOAN SERVICER ISSUED PURSUANT TO
THIS ARTICLE IF HE OR SHE SHALL FIND THAT:
  (A) A SERVICER HAS VIOLATED ANY PROVISION OF THIS ARTICLE, ANY RULE OR
REGULATION PROMULGATED  BY  THE  SUPERINTENDENT  UNDER  AND  WITHIN  THE
AUTHORITY OF THIS ARTICLE, OR ANY OTHER APPLICABLE LAW;
  (B)  ANY FACT OR CONDITION EXISTS WHICH, IF IT HAD EXISTED AT THE TIME
OF THE ORIGINAL APPLICATION FOR SUCH LICENSE, WOULD HAVE  WARRANTED  THE
SUPERINTENDENT REFUSING ORIGINALLY TO ISSUE SUCH LICENSE;
  (C) A SERVICER DOES NOT COOPERATE WITH AN EXAMINATION OR INVESTIGATION
BY THE SUPERINTENDENT;
  (D)  A  SERVICER  ENGAGES  IN FRAUD, INTENTIONAL MISREPRESENTATION, OR
GROSS NEGLIGENCE IN SERVICING A STUDENT LOAN;
  (E) THE COMPETENCE, EXPERIENCE, CHARACTER, OR GENERAL FITNESS  OF  THE
SERVICER, AN INDIVIDUAL CONTROLLING, DIRECTLY OR INDIRECTLY, TEN PERCENT
OR  MORE  OF  THE  OUTSTANDING  INTERESTS, OR ANY PERSON RESPONSIBLE FOR

S. 7508                            112                           A. 9508

SERVICING A STUDENT LOAN FOR THE SERVICER INDICATES THAT IT  IS  NOT  IN
THE PUBLIC INTEREST TO PERMIT THE SERVICER TO CONTINUE SERVICING STUDENT
LOANS;
  (F) THE SERVICER ENGAGES IN AN UNSAFE OR UNSOUND PRACTICE;
  (G) THE SERVICER IS INSOLVENT, SUSPENDS PAYMENT OF ITS OBLIGATIONS, OR
MAKES A GENERAL ASSIGNMENT FOR THE BENEFIT OF ITS CREDITORS; OR
  (H) A SERVICER HAS VIOLATED THE LAWS OF THIS STATE, ANY OTHER STATE OR
ANY  FEDERAL  LAW  INVOLVING FRAUDULENT OR DISHONEST DEALING, OR A FINAL
JUDGMENT HAS BEEN ENTERED AGAINST A STUDENT LOAN  SERVICER  IN  A  CIVIL
ACTION UPON GROUNDS OF FRAUD, MISREPRESENTATION OR DECEIT.
  2.  THE  SUPERINTENDENT  MAY, ON GOOD CAUSE SHOWN, OR WHERE THERE IS A
SUBSTANTIAL RISK OF PUBLIC HARM, SUSPEND ANY LICENSE FOR  A  PERIOD  NOT
EXCEEDING  THIRTY  DAYS, PENDING INVESTIGATION. "GOOD CAUSE", AS USED IN
THIS SUBDIVISION, SHALL EXIST WHEN A STUDENT LOAN SERVICER HAS DEFAULTED
OR IS LIKELY TO DEFAULT  IN  PERFORMING  ITS  FINANCIAL  ENGAGEMENTS  OR
ENGAGES  IN  DISHONEST OR INEQUITABLE PRACTICES WHICH MAY CAUSE SUBSTAN-
TIAL HARM TO THE PERSONS AFFORDED THE PROTECTION OF THIS ARTICLE.
  3. EXCEPT AS PROVIDED IN SUBDIVISION TWO OF THIS SECTION,  NO  LICENSE
SHALL BE REVOKED OR SUSPENDED EXCEPT AFTER NOTICE AND A HEARING THEREON.
ANY ORDER OF SUSPENSION ISSUED AFTER NOTICE AND A HEARING MAY INCLUDE AS
A  CONDITION OF REINSTATEMENT THAT THE STUDENT LOAN SERVICER MAKE RESTI-
TUTION TO CONSUMERS OF FEES OR OTHER CHARGES WHICH HAVE BEEN  IMPROPERLY
CHARGED  OR  COLLECTED,  INCLUDING  BUT  NOT  LIMITED  TO  BY ALLOCATING
PAYMENTS CONTRARY TO A BORROWER'S DIRECTION OR IN A MANNER THAT FAILS TO
HELP A BORROWER AVOID DEFAULT, AS DETERMINED BY THE SUPERINTENDENT.  ANY
HEARING  HELD  PURSUANT  TO  THE  PROVISIONS  OF  THIS  SECTION SHALL BE
NOTICED, CONDUCTED AND ADMINISTERED IN COMPLIANCE WITH THE STATE  ADMIN-
ISTRATIVE PROCEDURE ACT.
  4.  ANY  STUDENT LOAN SERVICER MAY SURRENDER ANY LICENSE BY DELIVERING
TO THE SUPERINTENDENT WRITTEN NOTICE THAT  IT  THEREBY  SURRENDERS  SUCH
LICENSE,  BUT  SUCH  SURRENDER  SHALL NOT AFFECT THE SERVICER'S CIVIL OR
CRIMINAL LIABILITY FOR ACTS COMMITTED PRIOR TO SUCH SURRENDER.  IF  SUCH
SURRENDER  IS  MADE AFTER THE ISSUANCE BY THE SUPERINTENDENT OF A STATE-
MENT OF CHARGES AND NOTICE OF HEARING, THE  SUPERINTENDENT  MAY  PROCEED
AGAINST THE SERVICER AS IF THE SURRENDER HAD NOT TAKEN PLACE.
  5. NO REVOCATION, SUSPENSION, OR SURRENDER OF ANY LICENSE SHALL IMPAIR
OR AFFECT THE OBLIGATION OF ANY PRE-EXISTING LAWFUL CONTRACT BETWEEN THE
STUDENT LOAN SERVICER AND ANY PERSON, INCLUDING THE DEPARTMENT.
  6. EVERY LICENSE ISSUED PURSUANT TO THIS ARTICLE SHALL REMAIN IN FORCE
AND  EFFECT  UNTIL  THE  SAME  SHALL  HAVE  BEEN SURRENDERED, REVOKED OR
SUSPENDED IN ACCORDANCE WITH ANY OTHER PROVISIONS OF THIS ARTICLE.
  7. WHENEVER THE SUPERINTENDENT  SHALL  REVOKE  OR  SUSPEND  A  LICENSE
ISSUED  PURSUANT  TO  THIS ARTICLE, HE OR SHE SHALL FORTHWITH EXECUTE IN
DUPLICATE A WRITTEN ORDER TO THAT EFFECT. THE SUPERINTENDENT SHALL  FILE
ONE  COPY OF SUCH ORDER IN THE OFFICE OF THE DEPARTMENT AND SHALL FORTH-
WITH SERVE THE OTHER COPY UPON THE STUDENT LOAN SERVICER. ANY SUCH ORDER
MAY BE REVIEWED IN THE MANNER PROVIDED BY ARTICLE SEVENTY-EIGHT  OF  THE
CIVIL PRACTICE LAW AND RULES.
  §  717.  BOOKS  AND  RECORDS;  REPORTS  AND ELECTRONIC FILING. 1. EACH
STUDENT LOAN SERVICER AND EXEMPT ORGANIZATION SHALL KEEP AND USE IN  ITS
BUSINESS SUCH BOOKS, ACCOUNTS AND RECORDS AS WILL ENABLE THE SUPERINTEN-
DENT TO DETERMINE WHETHER THE SERVICER OR EXEMPT ORGANIZATION IS COMPLY-
ING  WITH  THE  PROVISIONS  OF THIS ARTICLE AND WITH THE RULES AND REGU-
LATIONS LAWFULLY MADE BY THE SUPERINTENDENT. EVERY SERVICER  AND  EXEMPT
ORGANIZATION  SHALL  PRESERVE  SUCH BOOKS, ACCOUNTS, AND RECORDS, FOR AT
LEAST THREE YEARS.

S. 7508                            113                           A. 9508

  2. (A) EACH STUDENT LOAN SERVICER SHALL ANNUALLY, ON OR BEFORE A  DATE
TO  BE  DETERMINED  BY THE SUPERINTENDENT, FILE A REPORT WITH THE SUPER-
INTENDENT GIVING SUCH INFORMATION  AS  THE  SUPERINTENDENT  MAY  REQUIRE
CONCERNING  THE  BUSINESS  AND  OPERATIONS DURING THE PRECEDING CALENDAR
YEAR OF SUCH SERVICER UNDER AUTHORITY OF THIS ARTICLE. SUCH REPORT SHALL
BE  SUBSCRIBED  AND AFFIRMED AS TRUE BY THE SERVICER UNDER THE PENALTIES
OF PERJURY AND SHALL BE IN THE FORM PRESCRIBED BY THE SUPERINTENDENT.
  (B) IN ADDITION TO ANNUAL REPORTS, THE SUPERINTENDENT MAY REQUIRE SUCH
ADDITIONAL REGULAR OR SPECIAL REPORTS AS HE OR SHE MAY DEEM NECESSARY TO
THE PROPER SUPERVISION OF STUDENT LOAN  SERVICERS  UNDER  THIS  ARTICLE.
SUCH  ADDITIONAL REPORTS SHALL BE SUBSCRIBED AND AFFIRMED AS TRUE BY THE
SERVICER UNDER THE PENALTIES  OF  PERJURY  AND  SHALL  BE  IN  THE  FORM
PRESCRIBED BY THE SUPERINTENDENT.
  3.  NOTWITHSTANDING  ARTICLE  THREE OF THE STATE TECHNOLOGY LAW OR ANY
OTHER LAW TO THE CONTRARY,  THE  SUPERINTENDENT  MAY  REQUIRE  THAT  ANY
SUBMISSION  OR APPROVAL AS MAY BE REQUIRED BY THE SUPERINTENDENT BE MADE
OR EXECUTED BY ELECTRONIC MEANS IF HE  OR  SHE  DEEMS  IT  NECESSARY  TO
ENSURE THE EFFICIENT ADMINISTRATION OF THIS ARTICLE.
  §  718.  RULES  AND  REGULATIONS. 1. IN ADDITION TO SUCH POWERS AS MAY
OTHERWISE BE PRESCRIBED BY THIS CHAPTER, THE  SUPERINTENDENT  IS  HEREBY
AUTHORIZED AND EMPOWERED TO PROMULGATE SUCH RULES AND REGULATIONS AS MAY
IN THE JUDGMENT OF THE SUPERINTENDENT BE CONSISTENT WITH THE PURPOSES OF
THIS  ARTICLE,  OR  APPROPRIATE FOR THE EFFECTIVE ADMINISTRATION OF THIS
ARTICLE, INCLUDING, BUT NOT LIMITED TO:
  (A) SUCH RULES AND REGULATIONS IN CONNECTION WITH  THE  ACTIVITIES  OF
STUDENT  LOAN SERVICERS AND EXEMPT ORGANIZATIONS AS MAY BE NECESSARY AND
APPROPRIATE FOR THE PROTECTION OF BORROWERS IN THIS STATE.
  (B) SUCH RULES AND REGULATIONS AS MAY BE NECESSARY AND APPROPRIATE  TO
DEFINE UNFAIR, DECEPTIVE OR ABUSIVE ACTS OR PRACTICES IN CONNECTION WITH
THE  ACTIVITIES  OF  STUDENT  LOAN SERVICERS AND EXEMPT ORGANIZATIONS IN
SERVICING STUDENT LOANS.
  (C) SUCH RULES AND REGULATIONS AS MAY DEFINE THE TERMS  USED  IN  THIS
ARTICLE  AND AS MAY BE NECESSARY AND APPROPRIATE TO INTERPRET AND IMPLE-
MENT THE PROVISIONS OF THIS ARTICLE.
  (D) SUCH RULES AND REGULATIONS AS MAY BE NECESSARY FOR THE ENFORCEMENT
OF THIS ARTICLE.
  2. THE SUPERINTENDENT IS HEREBY AUTHORIZED AND EMPOWERED TO MAKE  SUCH
SPECIFIC  RULINGS,  DEMANDS  AND FINDINGS AS THE SUPERINTENDENT MAY DEEM
NECESSARY FOR THE PROPER CONDUCT OF THE STUDENT LOAN SERVICING INDUSTRY.
  § 719. PROHIBITED PRACTICES. NO STUDENT LOAN SERVICER SHALL:
  1. EMPLOY ANY SCHEME, DEVICE OR  ARTIFICE  TO  DEFRAUD  OR  MISLEAD  A
BORROWER.
  2. ENGAGE IN ANY UNFAIR, DECEPTIVE OR PREDATORY ACT OR PRACTICE TOWARD
ANY   PERSON  OR  MISREPRESENT  OR  OMIT  ANY  MATERIAL  INFORMATION  IN
CONNECTION WITH THE SERVICING OF A  STUDENT  LOAN,  INCLUDING,  BUT  NOT
LIMITED  TO,  MISREPRESENTING  THE AMOUNT, NATURE OR TERMS OF ANY FEE OR
PAYMENT DUE OR CLAIMED TO BE DUE ON A STUDENT LOAN, THE TERMS AND CONDI-
TIONS OF THE LOAN AGREEMENT OR  THE  BORROWER'S  OBLIGATIONS  UNDER  THE
LOAN.
  3. MISAPPLY PAYMENTS TO THE OUTSTANDING BALANCE OF ANY STUDENT LOAN OR
TO ANY RELATED INTEREST OR FEES.
  4. PROVIDE INACCURATE INFORMATION TO A CONSUMER REPORTING AGENCY.
  5.  REFUSE  TO  COMMUNICATE  WITH  AN AUTHORIZED REPRESENTATIVE OF THE
BORROWER WHO PROVIDES A WRITTEN AUTHORIZATION SIGNED  BY  THE  BORROWER,
PROVIDED  THAT  THE  SERVICER MAY ADOPT PROCEDURES REASONABLY RELATED TO

S. 7508                            114                           A. 9508

VERIFYING THAT THE REPRESENTATIVE IS IN FACT AUTHORIZED TO ACT ON BEHALF
OF THE BORROWER.
  6. MAKE ANY FALSE STATEMENT OR MAKE ANY OMISSION OF A MATERIAL FACT IN
CONNECTION  WITH  ANY  INFORMATION  OR REPORTS FILED WITH A GOVERNMENTAL
AGENCY OR IN CONNECTION WITH ANY INVESTIGATION CONDUCTED BY  THE  SUPER-
INTENDENT OR ANOTHER GOVERNMENTAL AGENCY.
  §  720. SERVICING STUDENT LOANS WITHOUT A LICENSE. 1. WHENEVER, IN THE
OPINION OF THE SUPERINTENDENT, A PERSON IS ENGAGED IN  THE  BUSINESS  OF
SERVICING  STUDENT LOANS, EITHER ACTUALLY OR THROUGH SUBTERFUGE, WITHOUT
A LICENSE FROM THE SUPERINTENDENT, THE  SUPERINTENDENT  MAY  ORDER  THAT
PERSON  TO DESIST AND REFRAIN FROM ENGAGING IN THE BUSINESS OF SERVICING
STUDENT LOANS IN THE STATE. IF, WITHIN THIRTY DAYS  AFTER  AN  ORDER  IS
SERVED,  A  REQUEST FOR A HEARING IS FILED IN WRITING AND THE HEARING IS
NOT HELD WITHIN SIXTY DAYS OF THE FILING, THE ORDER SHALL BE RESCINDED.
  2. THIS SECTION SHALL NOT APPLY TO EXEMPT ORGANIZATIONS.
  § 721. RESPONSIBILITIES. 1.  IF  A  STUDENT  LOAN  SERVICER  REGULARLY
REPORTS  INFORMATION  TO A CONSUMER REPORTING AGENCY, THE SERVICER SHALL
ACCURATELY REPORT A BORROWER'S  PAYMENT  PERFORMANCE  TO  AT  LEAST  ONE
CONSUMER REPORTING AGENCY THAT COMPILES AND MAINTAINS FILES ON CONSUMERS
ON  A  NATIONWIDE BASIS AS DEFINED IN SECTION 603(P) OF THE FEDERAL FAIR
CREDIT REPORTING ACT (15 U.S.C. SEC. 1681A(P)),  UPON  ACCEPTANCE  AS  A
DATA FURNISHER BY THAT CONSUMER REPORTING AGENCY.
  2. (A) EXCEPT AS PROVIDED IN FEDERAL LAW OR REQUIRED BY A STUDENT LOAN
AGREEMENT,  A  STUDENT  LOAN SERVICER SHALL INQUIRE OF A BORROWER HOW TO
APPLY A BORROWER'S NONCONFORMING PAYMENT. A BORROWER'S DIRECTION ON  HOW
TO  APPLY  A NONCONFORMING PAYMENT SHALL REMAIN IN EFFECT FOR ANY FUTURE
NONCONFORMING PAYMENT DURING THE  TERM  OF  A  STUDENT  LOAN  UNTIL  THE
BORROWER PROVIDES DIFFERENT DIRECTIONS.
  (B)  FOR  PURPOSES  OF THIS SUBDIVISION, "NONCONFORMING PAYMENT" SHALL
MEAN A PAYMENT THAT IS EITHER MORE OR LESS THAN THE BORROWER'S  REQUIRED
STUDENT LOAN PAYMENT.
  3.  (A) IF THE SALE, ASSIGNMENT, OR OTHER TRANSFER OF THE SERVICING OF
A STUDENT LOAN RESULTS IN A CHANGE IN THE IDENTITY OF THE PERSON TO WHOM
THE BORROWER IS REQUIRED TO  SEND  SUBSEQUENT  PAYMENTS  OR  DIRECT  ANY
COMMUNICATIONS  CONCERNING  THE  STUDENT  LOAN,  A STUDENT LOAN SERVICER
SHALL TRANSFER  ALL  INFORMATION  REGARDING  A  BORROWER,  A  BORROWER'S
ACCOUNT, AND A BORROWER'S STUDENT LOAN, INCLUDING BUT NOT LIMITED TO THE
BORROWER'S  REPAYMENT  STATUS  AND ANY BORROWER BENEFITS ASSOCIATED WITH
THE BORROWER'S STUDENT LOAN, TO THE NEW STUDENT LOAN SERVICER  SERVICING
THE BORROWER'S STUDENT LOAN WITHIN FORTY-FIVE DAYS.
  (B)  A  STUDENT  LOAN  SERVICER SHALL ADOPT POLICIES AND PROCEDURES TO
VERIFY THAT IT HAS RECEIVED ALL  INFORMATION  REGARDING  A  BORROWER,  A
BORROWER'S  ACCOUNT,  AND  A  BORROWER'S STUDENT LOAN, INCLUDING BUT NOT
LIMITED TO THE BORROWER'S REPAYMENT STATUS  AND  ANY  BORROWER  BENEFITS
ASSOCIATED  WITH  THE BORROWER'S STUDENT LOAN, WHEN THE SERVICER OBTAINS
THE RIGHT TO SERVICE A STUDENT LOAN.
  4. IF A STUDENT LOAN SERVICER SELLS, ASSIGNS, OR  OTHERWISE  TRANSFERS
THE  SERVICING OF A STUDENT LOAN TO A NEW SERVICER, THE SALE, ASSIGNMENT
OR OTHER TRANSFER SHALL BE COMPLETED AT  LEAST  SEVEN  DAYS  BEFORE  THE
BORROWER'S NEXT PAYMENT IS DUE.
  5.  (A)  A  STUDENT  LOAN  SERVICER  THAT SELLS, ASSIGNS, OR OTHERWISE
TRANSFERS THE SERVICING OF A STUDENT LOAN SHALL REQUIRE AS  A  CONDITION
OF  SUCH  SALE,  ASSIGNMENT  OR OTHER TRANSFER THAT THE NEW STUDENT LOAN
SERVICER SHALL HONOR ALL BORROWER  BENEFITS  ORIGINALLY  REPRESENTED  AS
BEING  AVAILABLE  TO A BORROWER DURING THE REPAYMENT OF THE STUDENT LOAN
AND THE POSSIBILITY OF SUCH BENEFITS, INCLUDING ANY BENEFITS  THAT  WERE

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REPRESENTED  AS  BEING  AVAILABLE BUT FOR WHICH THE BORROWER HAD NOT YET
QUALIFIED.
  (B)  A  STUDENT  LOAN  SERVICER  THAT  OBTAINS  THE RIGHT TO SERVICE A
STUDENT LOAN SHALL HONOR ALL BORROWER BENEFITS ORIGINALLY REPRESENTED AS
BEING AVAILABLE TO A BORROWER DURING THE REPAYMENT OF THE  STUDENT  LOAN
AND  THE  POSSIBILITY OF SUCH BENEFITS, INCLUDING ANY BENEFITS THAT WERE
REPRESENTED AS BEING AVAILABLE BUT FOR WHICH THE BORROWER  HAD  NOT  YET
QUALIFIED.
  6.  A  STUDENT  LOAN  SERVICER  SHALL RESPOND WITHIN THIRTY DAYS AFTER
RECEIPT TO A WRITTEN INQUIRY FROM A BORROWER OR A  BORROWER'S  REPRESEN-
TATIVE.
  7. A STUDENT LOAN SERVICER SHALL PRESERVE RECORDS OF EACH STUDENT LOAN
AND  ALL  COMMUNICATIONS  WITH  BORROWERS  FOR  NOT  LESS THAN TWO YEARS
FOLLOWING THE FINAL PAYMENT ON A STUDENT LOAN OR THE SALE, ASSIGNMENT OR
OTHER TRANSFER OF THE SERVICING OF  A  STUDENT  LOAN,  WHICHEVER  OCCURS
FIRST,  OR  SUCH LONGER PERIOD AS MAY BE REQUIRED BY ANY OTHER PROVISION
OF LAW.
  § 722. EXAMINATIONS. 1. THE SUPERINTENDENT MAY AT  ANY  TIME,  AND  AS
OFTEN  AS HE OR SHE MAY DETERMINE, EITHER PERSONALLY OR BY A PERSON DULY
DESIGNATED BY THE SUPERINTENDENT, INVESTIGATE THE BUSINESS  AND  EXAMINE
THE  BOOKS,  ACCOUNTS,  RECORDS, AND FILES USED THEREIN OF EVERY STUDENT
LOAN SERVICER. FOR THAT PURPOSE THE SUPERINTENDENT AND HIS OR  HER  DULY
DESIGNATED  REPRESENTATIVE  SHALL  HAVE  FREE  ACCESS TO THE OFFICES AND
PLACES OF BUSINESS, BOOKS, ACCOUNTS, PAPERS, RECORDS, FILES,  SAFES  AND
VAULTS  OF ALL STUDENT LOAN SERVICERS. THE SUPERINTENDENT AND ANY PERSON
DULY DESIGNATED BY HIM OR HER SHALL HAVE THE AUTHORITY  TO  REQUIRE  THE
ATTENDANCE  OF  AND TO EXAMINE UNDER OATH ALL PERSONS WHOSE TESTIMONY HE
OR SHE MAY REQUIRE RELATIVE TO SUCH BUSINESS.
  2. NO PERSON  SUBJECT  TO  INVESTIGATION  OR  EXAMINATION  UNDER  THIS
SECTION  MAY  KNOWINGLY WITHHOLD, ABSTRACT, REMOVE, MUTILATE, DESTROY OR
SECRETE ANY BOOKS, RECORDS, COMPUTER RECORDS OR OTHER INFORMATION.
  3. THE EXPENSES INCURRED IN MAKING ANY EXAMINATION  PURSUANT  TO  THIS
SECTION  SHALL BE ASSESSED AGAINST AND PAID BY THE STUDENT LOAN SERVICER
SO EXAMINED, EXCEPT THAT TRAVELING AND SUBSISTENCE EXPENSES SO  INCURRED
SHALL  BE  CHARGED  AGAINST AND PAID BY SERVICERS IN SUCH PROPORTIONS AS
THE SUPERINTENDENT SHALL DEEM JUST  AND  REASONABLE,  AND  SUCH  PROPOR-
TIONATE  CHARGES  SHALL BE ADDED TO THE ASSESSMENT OF THE OTHER EXPENSES
INCURRED UPON EACH EXAMINATION. UPON WRITTEN NOTICE BY  THE  SUPERINTEN-
DENT  OF  THE TOTAL AMOUNT OF SUCH ASSESSMENT, THE SERVICER SHALL BECOME
LIABLE FOR AND SHALL PAY SUCH ASSESSMENT TO THE SUPERINTENDENT.
  4. IN ANY HEARING IN WHICH A DEPARTMENT EMPLOYEE ACTING UNDER AUTHORI-
TY OF THIS CHAPTER IS  AVAILABLE  FOR  CROSS-EXAMINATION,  ANY  OFFICIAL
WRITTEN  REPORT, WORKSHEET, OTHER RELATED PAPERS, OR DULY CERTIFIED COPY
THEREOF, COMPILED, PREPARED, DRAFTED, OR OTHERWISE MADE BY SUCH  DEPART-
MENT  EMPLOYEE,  AFTER  BEING DULY AUTHENTICATED BY THE EMPLOYEE, MAY BE
ADMITTED AS COMPETENT EVIDENCE UPON THE OATH OF THE EMPLOYEE  THAT  SUCH
WORKSHEET,   INVESTIGATIVE  REPORT,  OR  OTHER  RELATED  DOCUMENTS  WERE
PREPARED AS A RESULT OF AN EXAMINATION OF THE BOOKS  AND  RECORDS  OF  A
SERVICER  OR  OTHER  PERSON, CONDUCTED PURSUANT TO THE AUTHORITY OF THIS
CHAPTER.
  5. UNLESS OTHERWISE EXEMPT PURSUANT  TO  SUBDIVISION  TWO  OF  SECTION
SEVEN  HUNDRED  ELEVEN  OF  THIS  ARTICLE,  AFFILIATES OF A STUDENT LOAN
SERVICER ARE SUBJECT TO EXAMINATION BY THE SUPERINTENDENT  ON  THE  SAME
TERMS  AS THE SERVICER, BUT ONLY WHEN REPORTS FROM, OR EXAMINATION OF, A
SERVICER PROVIDES EVIDENCE OF UNLAWFUL ACTIVITY BETWEEN A  SERVICER  AND

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AFFILIATE  BENEFITTING,  AFFECTING, OR ARISING FROM THE ACTIVITIES REGU-
LATED BY THIS ARTICLE.
  § 723. PENALTIES FOR VIOLATION OF THIS ARTICLE. 1. IN ADDITION TO SUCH
PENALTIES AS MAY OTHERWISE BE APPLICABLE BY LAW, THE SUPERINTENDENT MAY,
AFTER  NOTICE  AND  HEARING,  REQUIRE  ANY  PERSON  FOUND  VIOLATING THE
PROVISIONS OF THIS ARTICLE OR THE RULES OR REGULATIONS PROMULGATED HERE-
UNDER TO PAY TO THE PEOPLE OF THIS STATE A PENALTY FOR EACH VIOLATION OF
THE ARTICLE OR ANY REGULATION OR POLICY PROMULGATED HEREUNDER A SUM  NOT
TO EXCEED AN AMOUNT AS DETERMINED PURSUANT TO SECTION FORTY-FOUR OF THIS
CHAPTER FOR EACH SUCH VIOLATION.
  2.  NOTHING  IN  THIS  ARTICLE SHALL LIMIT ANY STATUTORY OR COMMON-LAW
RIGHT OF ANY PERSON TO BRING ANY ACTION IN ANY COURT FOR ANY ACT, OR THE
RIGHT OF THE STATE TO PUNISH ANY PERSON FOR ANY VIOLATION OF ANY LAW.
  § 724. SEVERABILITY OF PROVISIONS. IF ANY PROVISION OF  THIS  ARTICLE,
OR  THE  APPLICATION  OF  SUCH  PROVISION TO ANY PERSON OR CIRCUMSTANCE,
SHALL BE HELD INVALID, ILLEGAL OR UNENFORCEABLE, THE  REMAINDER  OF  THE
ARTICLE,  AND  THE  APPLICATION  OF SUCH PROVISION TO PERSONS OR CIRCUM-
STANCES OTHER THAN THOSE AS TO WHICH IT  IS  HELD  INVALID,  ILLEGAL  OR
UNENFORCEABLE, SHALL NOT BE AFFECTED THEREBY.
  §  725.  COMPLIANCE  WITH  OTHER LAWS. 1. STUDENT LOAN SERVICERS SHALL
ENGAGE IN THE BUSINESS OF SERVICING STUDENT LOANS IN CONFORMITY WITH THE
PROVISIONS OF THE FINANCIAL SERVICES LAW, THIS CHAPTER, SUCH  RULES  AND
REGULATIONS  AS  MAY BE PROMULGATED BY THE SUPERINTENDENT THEREUNDER AND
ALL APPLICABLE FEDERAL LAWS AND THE RULES  AND  REGULATIONS  PROMULGATED
THEREUNDER.
  2.  NOTHING  IN THIS SECTION SHALL BE CONSTRUED TO LIMIT ANY OTHERWISE
APPLICABLE STATE OR FEDERAL LAW OR REGULATIONS.
  § 2. Subdivision 10 of section 36 of the banking law,  as  amended  by
chapter 182 of the laws of 2011, is amended to read as follows:
  10. All reports of examinations and investigations, correspondence and
memoranda  concerning  or  arising  out of such examination and investi-
gations, including any duly authenticated copy or copies thereof in  the
possession  of  any  banking  organization,  bank holding company or any
subsidiary thereof (as such terms "bank holding  company"  and  "subsid-
iary"  are  defined in article three-A of this chapter), any corporation
or any other entity affiliated with a banking  organization  within  the
meaning  of  subdivision six of this section and any non-banking subsid-
iary of a corporation or any other entity which is  an  affiliate  of  a
banking  organization  within  the  meaning of subdivision six-a of this
section, foreign banking corporation, licensed lender,  licensed  casher
of   checks,  licensed  mortgage  banker,  registered  mortgage  broker,
licensed mortgage  loan  originator,  licensed  sales  finance  company,
registered  mortgage  loan  servicer,  LICENSED  STUDENT  LOAN SERVICER,
licensed insurance  premium  finance  agency,  licensed  transmitter  of
money,  licensed  budget  planner, any other person or entity subject to
supervision under this chapter, or the department, shall be confidential
communications, shall not be subject to subpoena and shall not  be  made
public  unless,  in  the  judgment  of  the  superintendent, the ends of
justice and the public advantage will be subserved  by  the  publication
thereof,  in which event the superintendent may publish or authorize the
publication of a copy of any such report or any  part  thereof  in  such
manner  as may be deemed proper or unless such laws specifically author-
ize such disclosure. For the purposes of this subdivision,  "reports  of
examinations  and  investigations,  and any correspondence and memoranda
concerning or arising out  of  such  examinations  and  investigations",
includes any such materials of a bank, insurance or securities regulato-

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ry  agency  or  any unit of the federal government or that of this state
any other state or that of any foreign government which  are  considered
confidential  by  such agency or unit and which are in the possession of
the  department  or which are otherwise confidential materials that have
been shared by the department with any such agency or unit  and  are  in
the possession of such agency or unit.
  §  3.  Subdivisions  1,  2,  3 and 5 of section 39 of the banking law,
subdivisions 1, 2 and 5 as amended by chapter 123 of the  laws  of  2009
and  subdivision  3  as  amended by chapter 155 of the laws of 2012, are
amended to read as follows:
  1. To appear and explain an  apparent  violation.  Whenever  it  shall
appear to the superintendent that any banking organization, bank holding
company,  registered mortgage broker, licensed mortgage banker, LICENSED
STUDENT LOAN SERVICER, registered mortgage loan servicer, licensed mort-
gage loan  originator,  licensed  lender,  licensed  casher  of  checks,
licensed sales finance company, licensed insurance premium finance agen-
cy, licensed transmitter of money, licensed budget planner, out-of-state
state  bank  that  maintains  a  branch or branches or representative or
other offices in this state, or foreign banking corporation licensed  by
the superintendent to do business or maintain a representative office in
this  state has violated any law or regulation, he or she may, in his or
her discretion, issue an order describing such  apparent  violation  and
requiring  such  banking  organization, bank holding company, registered
mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN  SERVI-
CER, licensed mortgage loan originator, licensed lender, licensed casher
of  checks,  licensed  sales finance company, licensed insurance premium
finance agency, licensed transmitter of money, licensed budget  planner,
out-of-state state bank that maintains a branch or branches or represen-
tative or other offices in this state, or foreign banking corporation to
appear  before  him  or her, at a time and place fixed in said order, to
present an explanation of such apparent violation.
  2. To discontinue unauthorized or unsafe and unsound practices.  When-
ever  it  shall  appear to the superintendent that any banking organiza-
tion, bank holding company, registered mortgage broker,  licensed  mort-
gage  banker,  LICENSED  STUDENT LOAN SERVICER, registered mortgage loan
servicer, licensed mortgage loan originator, licensed  lender,  licensed
casher  of  checks,  licensed  sales finance company, licensed insurance
premium finance agency, licensed transmitter of money,  licensed  budget
planner,  out-of-state state bank that maintains a branch or branches or
representative or other offices in this state, or foreign banking corpo-
ration licensed by the superintendent to do business in  this  state  is
conducting  business in an unauthorized or unsafe and unsound manner, he
or she may, in his or her  discretion,  issue  an  order  directing  the
discontinuance of such unauthorized or unsafe and unsound practices, and
fixing a time and place at which such banking organization, bank holding
company,  registered mortgage broker, licensed mortgage banker, LICENSED
STUDENT LOAN SERVICER, registered mortgage loan servicer, licensed mort-
gage loan  originator,  licensed  lender,  licensed  casher  of  checks,
licensed sales finance company, licensed insurance premium finance agen-
cy, licensed transmitter of money, licensed budget planner, out-of-state
state  bank  that  maintains  a  branch or branches or representative or
other offices in this state, or foreign banking corporation  may  volun-
tarily appear before him or her to present any explanation in defense of
the practices directed in said order to be discontinued.
  3.  To  make  good  impairment of capital or to ensure compliance with
financial requirements. Whenever it shall appear to  the  superintendent

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that  the  capital  or  capital  stock of any banking organization, bank
holding company or any subsidiary thereof which is  organized,  licensed
or  registered  pursuant  to this chapter, is impaired, or the financial
requirements  imposed by subdivision one of section two hundred two-b of
this chapter or any regulation of the superintendent on  any  branch  or
agency  of  a  foreign banking corporation or the financial requirements
imposed by this chapter or any regulation of the superintendent  on  any
licensed  lender,  registered mortgage broker, licensed mortgage banker,
LICENSED STUDENT LOAN SERVICER,  licensed  casher  of  checks,  licensed
sales  finance  company,  licensed  insurance  premium  finance  agency,
licensed transmitter of money, licensed budget planner or private banker
are not satisfied,  the  superintendent  may,  in  the  superintendent's
discretion,  issue  an  order  directing that such banking organization,
bank holding company, branch or agency of a foreign banking corporation,
registered mortgage broker, licensed mortgage banker,  LICENSED  STUDENT
LOAN  SERVICER,  licensed  lender,  licensed  casher of checks, licensed
sales  finance  company,  licensed  insurance  premium  finance  agency,
licensed transmitter of money, licensed budget planner, or private bank-
er  make  good  such  deficiency forthwith or within a time specified in
such order.
  5. To keep books and accounts as prescribed. Whenever it shall  appear
to the superintendent that any banking organization, bank holding compa-
ny,  registered  mortgage  broker,  licensed  mortgage  banker, LICENSED
STUDENT LOAN SERVICER, registered mortgage loan servicer, licensed mort-
gage loan  originator,  licensed  lender,  licensed  casher  of  checks,
licensed sales finance company, licensed insurance premium finance agen-
cy,  licensed  transmitter  of money, licensed budget planner, agency or
branch of a foreign banking corporation licensed by  the  superintendent
to  do  business  in this state, does not keep its books and accounts in
such manner as to enable him or her to readily ascertain its true condi-
tion, he or she may, in his or her discretion, issue an order  requiring
such  banking  organization,  bank  holding company, registered mortgage
broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, regis-
tered  mortgage  loan  servicer,  licensed  mortgage  loan   originator,
licensed  lender,  licensed  casher  of  checks,  licensed sales finance
company, licensed insurance premium finance agency, licensed transmitter
of money, licensed budget planner, or foreign  banking  corporation,  or
the  officers  or  agents thereof, or any of them, to open and keep such
books or accounts as he or she may, in his or her discretion,  determine
and prescribe for the purpose of keeping accurate and convenient records
of its transactions and accounts.
  §  4. Paragraph (a) of subdivision 1 of section 44 of the banking law,
as amended by chapter 155 of the laws of 2012, is  amended  to  read  as
follows:
  (a) Without limiting any power granted to the superintendent under any
other provision of this chapter, the superintendent may, in a proceeding
after  notice  and a hearing, require any safe deposit company, licensed
lender, licensed casher  of  checks,  licensed  sales  finance  company,
licensed  insurance  premium  finance  agency,  licensed  transmitter of
money, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER,  regis-
tered  mortgage  broker,  licensed  mortgage loan originator, registered
mortgage loan servicer or licensed budget planner to pay to  the  people
of  this  state  a  penalty for any violation of this chapter, any regu-
lation promulgated thereunder,  any  final  or  temporary  order  issued
pursuant  to  section thirty-nine of this article, any condition imposed
in writing by the superintendent in connection with  the  grant  of  any

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application  or  request, or any written agreement entered into with the
superintendent.
  § 5. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

                                SUBPART B

  Section 1. The financial services law is amended by adding a new arti-
cle 7 to read as follows:

                                ARTICLE 7
                        STUDENT DEBT CONSULTANTS
SECTION 701. DEFINITIONS.
        702. PROHIBITIONS.
        703. DISCLOSURE REQUIREMENTS.
        704. STUDENT DEBT CONSULTING CONTRACTS.
        705. PENALTIES AND OTHER PROVISIONS.
        706. RULES AND REGULATIONS.
  §  701. DEFINITIONS.   (A) THE TERM "ADVERTISEMENT" SHALL INCLUDE, BUT
IS NOT LIMITED TO, ALL FORMS  OF  MARKETING,  SOLICITATION,  OR  DISSEM-
INATION  OF  INFORMATION RELATED, DIRECTLY OR INDIRECTLY, TO SECURING OR
OBTAINING A STUDENT DEBT CONSULTING CONTRACT OR  SERVICES.  FURTHER,  IT
SHALL  INCLUDE  ANY AND ALL COMMONLY RECOGNIZED FORMS OF MEDIA MARKETING
VIA TELEVISION, RADIO, PRINT MEDIA, ALL  FORMS  OF  ELECTRONIC  COMMUNI-
CATION  VIA  THE INTERNET, AND ALL PREPARED SALES PRESENTATIONS GIVEN IN
PERSON OR OVER THE INTERNET TO THE GENERAL PUBLIC.
  (B) "BORROWER" MEANS ANY RESIDENT OF THIS STATE  WHO  HAS  RECEIVED  A
STUDENT  LOAN  OR  AGREED IN WRITING TO PAY A STUDENT LOAN OR ANY PERSON
WHO SHARES A LEGAL OBLIGATION WITH SUCH RESIDENT FOR REPAYING A  STUDENT
LOAN.
  (C)  "FSA ID" MEANS A USERNAME AND PASSWORD ALLOCATED TO AN INDIVIDUAL
BY THE FEDERAL GOVERNMENT TO ENABLE THE INDIVIDUAL TO LOG IN TO  CERTAIN
UNITED  STATES DEPARTMENT OF EDUCATION WEBSITES, AND MAY BE USED TO SIGN
CERTAIN DOCUMENTS ELECTRONICALLY.
  (D) "STUDENT LOAN" MEANS ANY LOAN TO A BORROWER TO FINANCE POST-SECON-
DARY EDUCATION OR EXPENSES RELATED TO POST-SECONDARY EDUCATION.
  (E) "STUDENT DEBT CONSULTING CONTRACT" OR "CONTRACT" MEANS  AN  AGREE-
MENT  BETWEEN  A  BORROWER  AND  A CONSULTANT UNDER WHICH THE CONSULTANT
AGREES TO PROVIDE STUDENT DEBT CONSULTING SERVICES.
  (F) "STUDENT DEBT CONSULTANT" OR "CONSULTANT" MEANS AN INDIVIDUAL OR A
CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY  OR  OTHER  BUSINESS
ENTITY  THAT,  DIRECTLY OR INDIRECTLY, SOLICITS OR UNDERTAKES EMPLOYMENT
TO PROVIDE STUDENT DEBT  CONSULTING  SERVICES.  A  CONSULTANT  DOES  NOT
INCLUDE THE FOLLOWING:
  (1)  A  PERSON  OR  ENTITY  WHO  HOLDS OR IS OWED AN OBLIGATION ON THE
STUDENT LOAN WHILE THE PERSON OR ENTITY PERFORMS SERVICES IN  CONNECTION
WITH THE STUDENT LOAN;
  (2)  A  BANK,  TRUST  COMPANY,  PRIVATE  BANKER, BANK HOLDING COMPANY,
SAVINGS BANK, SAVINGS AND  LOAN  ASSOCIATION,  THRIFT  HOLDING  COMPANY,
CREDIT  UNION  OR  INSURANCE  COMPANY  ORGANIZED  UNDER THE LAWS OF THIS
STATE, ANOTHER STATE OR THE UNITED STATES, OR A SUBSIDIARY OR  AFFILIATE
OF  SUCH  ENTITY OR A FOREIGN BANKING CORPORATION LICENSED BY THE SUPER-
INTENDENT OF FINANCIAL SERVICES OR THE COMPTROLLER OF THE CURRENCY;
  (3) A BONA FIDE NOT-FOR-PROFIT ORGANIZATION THAT OFFERS COUNSELING  OR
ADVICE TO BORROWERS; OR

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  (4)  SUCH OTHER PERSONS AS THE SUPERINTENDENT PRESCRIBES OR INTERPRETS
BY RULE.
  (G)  "STUDENT  DEBT CONSULTING SERVICES" MEANS SERVICES THAT A STUDENT
DEBT CONSULTANT PROVIDES TO A BORROWER THAT  THE  CONSULTANT  REPRESENTS
WILL HELP TO ACHIEVE ANY OF THE FOLLOWING:
  (1)  STOP,  ENJOIN,  DELAY, VOID, SET ASIDE, ANNUL, STAY OR POSTPONE A
DEFAULT, BANKRUPTCY, TAX OFFSET, OR GARNISHMENT PROCEEDING;
  (2) OBTAIN A FORBEARANCE, DEFERMENT, OR OTHER RELIEF THAT  TEMPORARILY
HALTS REPAYMENT OF A STUDENT LOAN;
  (3)  ASSIST THE BORROWER WITH PREPARING OR FILING DOCUMENTS RELATED TO
STUDENT LOAN REPAYMENT;
  (4) ADVISE THE BORROWER WHICH STUDENT LOAN REPAYMENT PLAN OR  FORGIVE-
NESS PROGRAM TO CONSIDER;
  (5)  ENROLL  THE  BORROWER IN ANY STUDENT LOAN REPAYMENT, FORGIVENESS,
DISCHARGE, OR CONSOLIDATION PROGRAM;
  (6) ASSIST THE BORROWER IN  RE-ESTABLISHING  ELIGIBILITY  FOR  FEDERAL
STUDENT FINANCIAL ASSISTANCE;
  (7) ASSIST THE BORROWER IN REMOVING A STUDENT LOAN FROM DEFAULT; OR
  (8) EDUCATE THE BORROWER ABOUT STUDENT LOAN REPAYMENT.
  §  702.  PROHIBITIONS.    A STUDENT DEBT CONSULTANT IS PROHIBITED FROM
DOING THE FOLLOWING:
  (A) PERFORMING STUDENT DEBT CONSULTING  SERVICES  WITHOUT  A  WRITTEN,
FULLY EXECUTED CONTRACT WITH A BORROWER;
  (B)  CHARGING FOR OR ACCEPTING ANY PAYMENT FOR STUDENT DEBT CONSULTING
SERVICES BEFORE THE FULL COMPLETION OF ALL SUCH  SERVICES,  INCLUDING  A
PAYMENT  TO  BE  PLACED  IN  ESCROW  OR  ANY  OTHER  ACCOUNT PENDING THE
COMPLETION OF SUCH SERVICES;
  (C) TAKING A POWER OF ATTORNEY FROM A BORROWER;
  (D) RETAINING ANY ORIGINAL LOAN DOCUMENT OR  OTHER  ORIGINAL  DOCUMENT
RELATED TO A BORROWER'S STUDENT LOAN;
  (E)  REQUESTING  THAT  A  BORROWER  PROVIDE  HIS  OR HER FSA ID TO THE
CONSULTANT, OR ACCEPTING A BORROWER'S FSA ID;
  (F) STATING OR IMPLYING THAT A BORROWER WILL NOT  BE  ABLE  TO  OBTAIN
RELIEF ON THEIR OWN;
  (G) MISREPRESENTING, EXPRESSLY OR BY IMPLICATION, THAT:
  (1) THE CONSULTANT IS A PART OF, AFFILIATED WITH, OR ENDORSED OR SPON-
SORED  BY  THE  GOVERNMENT,  GOVERNMENT LOAN PROGRAMS, THE UNITED STATES
DEPARTMENT OF EDUCATION, OR BORROWERS' STUDENT LOAN SERVICERS; OR
  (2) SOME OR ALL OF A BORROWER'S PAYMENTS TO  THE  CONSULTANT  WILL  BE
APPLIED TOWARDS THE BORROWER'S STUDENT LOANS.
  (H)  INDUCING  OR  ATTEMPTING  TO  INDUCE  A STUDENT DEBTOR TO ENTER A
CONTRACT THAT DOES NOT FULLY COMPLY WITH THE PROVISIONS OF THIS ARTICLE;
OR
  (I) ENGAGING IN ANY UNFAIR, DECEPTIVE, OR ABUSIVE ACT OR PRACTICE.
  § 703. DISCLOSURE REQUIREMENTS.  (A) A STUDENT DEBT  CONSULTANT  SHALL
CLEARLY AND CONSPICUOUSLY DISCLOSE IN ALL ADVERTISEMENTS:
  (1) THE ACTUAL SERVICES THE CONSULTANT PROVIDES TO BORROWERS;
  (2)  THAT  BORROWERS CAN APPLY FOR AND OBTAIN CONSOLIDATION LOANS FROM
THE UNITED STATES DEPARTMENT OF EDUCATION AT NO COST, INCLUDING  PROVID-
ING  A DIRECT LINK IN ALL WRITTEN ADVERTISING TO THE APPLICATION MATERI-
ALS FOR A DIRECT CONSOLIDATION LOAN FROM THE U.S. DEPARTMENT  OF  EDUCA-
TION;
  (3) THAT CONSOLIDATION OR OTHER SERVICES OFFERED BY THE CONSULTANT MAY
NOT BE THE BEST OR ONLY OPTION FOR BORROWERS;

S. 7508                            121                           A. 9508

  (4) THAT A BORROWER MAY OBTAIN ALTERNATIVE FEDERAL STUDENT LOAN REPAY-
MENT  PLANS,  INCLUDING  INCOME-BASED  PROGRAMS,  WITHOUT  CONSOLIDATING
EXISTING FEDERAL STUDENT LOANS; AND
  (5)  THAT  BORROWERS  SHOULD  CONSIDER  CONSULTING  THEIR STUDENT LOAN
SERVICER BEFORE SIGNING ANY LEGAL DOCUMENT CONCERNING A STUDENT LOAN.
  (B) THE DISCLOSURES REQUIRED BY SUBSECTION (A)  OF  THIS  SECTION,  IF
DISSEMINATED  THROUGH  PRINT MEDIA OR THE INTERNET, SHALL BE CLEARLY AND
LEGIBLY PRINTED OR DISPLAYED IN NOT LESS THAN  TWELVE-POINT  BOLD  TYPE,
OR,  IF  THE  ADVERTISEMENT  IS PRINTED TO BE DISPLAYED IN PRINT THAT IS
SMALLER THAN TWELVE POINT, IN BOLD TYPE PRINT THAT IS  NO  SMALLER  THAN
THE  PRINT  IN  WHICH  THE  TEXT  OF  THE  ADVERTISEMENT  IS  PRINTED OR
DISPLAYED.
  (C) THE PROVISIONS OF THIS SECTION SHALL APPLY TO ALL CONSULTANTS  WHO
DISSEMINATE  ADVERTISEMENTS  IN  THE  STATE OF NEW YORK OR WHO INTEND TO
DIRECTLY OR INDIRECTLY CONTACT A BORROWER WHO HAS A STUDENT LOAN AND  IS
IN NEW YORK STATE. CONSULTANTS SHALL ESTABLISH AND AT ALL TIMES MAINTAIN
CONTROL OVER THE CONTENT, FORM AND METHOD OF DISSEMINATION OF ALL ADVER-
TISEMENTS  OF  THEIR  SERVICES.    FURTHER,  ALL ADVERTISEMENTS SHALL BE
SUFFICIENTLY COMPLETE AND CLEAR TO AVOID THE POSSIBILITY OF DECEPTION OR
THE ABILITY TO MISLEAD OR DECEIVE.
  § 704. STUDENT DEBT CONSULTING CONTRACTS.  (A) A STUDENT DEBT CONSULT-
ING CONTRACT SHALL:
  (1) CONTAIN THE ENTIRE AGREEMENT OF THE PARTIES;
  (2) BE PROVIDED IN WRITING TO THE BORROWER FOR REVIEW BEFORE SIGNING;
  (3) BE PRINTED IN AT LEAST TWELVE-POINT TYPE AND WRITTEN IN  THE  SAME
LANGUAGE  THAT  IS  USED  BY  THE  BORROWER  AND WAS USED IN DISCUSSIONS
BETWEEN THE CONSULTANT AND  THE  BORROWER  TO  DESCRIBE  THE  BORROWER'S
SERVICES OR TO NEGOTIATE THE CONTRACT;
  (4)  FULLY DISCLOSE THE EXACT NATURE OF THE SERVICES TO BE PROVIDED BY
THE CONSULTANT OR ANYONE WORKING IN ASSOCIATION WITH THE CONSULTANT;
  (5) FULLY DISCLOSE THE TOTAL AMOUNT AND TERMS OF COMPENSATION FOR SUCH
SERVICES;
  (6) CONTAIN THE NAME, BUSINESS ADDRESS AND  TELEPHONE  NUMBER  OF  THE
CONSULTANT AND THE STREET ADDRESS, IF DIFFERENT, AND FACSIMILE NUMBER OR
EMAIL ADDRESS OF THE CONSULTANT WHERE COMMUNICATIONS FROM THE DEBTOR MAY
BE DELIVERED;
  (7)  BE DATED AND PERSONALLY SIGNED BY THE BORROWER AND THE CONSULTANT
AND BE WITNESSED AND ACKNOWLEDGED BY A NEW YORK NOTARY PUBLIC; AND
  (8) CONTAIN THE FOLLOWING NOTICE, WHICH SHALL BE PRINTED IN  AT  LEAST
FOURTEEN-POINT  BOLDFACE  TYPE, COMPLETED WITH THE NAME OF THE PROVIDER,
AND LOCATED IN  IMMEDIATE  PROXIMITY  TO  THE  SPACE  RESERVED  FOR  THE
DEBTOR'S SIGNATURE:
"NOTICE REQUIRED BY NEW YORK LAW
YOU  MAY CANCEL THIS CONTRACT, WITHOUT ANY PENALTY OR OBLIGATION, AT ANY
TIME BEFORE MIDNIGHT OF
......... (FIFTH BUSINESS DAY AFTER EXECUTION).
......... (NAME OF CONSULTANT) (THE "CONSULTANT") OR ANYONE WORKING  FOR
THE  CONSULTANT  MAY  NOT  TAKE  ANY MONEY FROM YOU OR ASK YOU FOR MONEY
UNTIL THE CONSULTANT  HAS  COMPLETELY  FINISHED  DOING  EVERYTHING  THIS
CONTRACT SAYS THE CONSULTANT WILL DO.
YOU SHOULD CONSIDER CONTACTING YOUR STUDENT LOAN SERVICER BEFORE SIGNING
ANY  LEGAL  DOCUMENT  CONCERNING YOUR STUDENT LOAN. IN ADDITION, YOU MAY
WANT TO VISIT THE NEW  YORK  STATE  DEPARTMENT  OF  FINANCIAL  SERVICES'
STUDENT LENDING RESOURCE CENTER AT WWW.DFS.NY.GOV/STUDENTPROTECTION. THE
LAW REQUIRES THAT THIS CONTRACT CONTAIN THE ENTIRE AGREEMENT BETWEEN YOU

S. 7508                            122                           A. 9508

AND  THE  PROVIDER.  YOU  SHOULD NOT RELY UPON ANY OTHER WRITTEN OR ORAL
AGREEMENT OR PROMISE."
THE  PROVIDER  SHALL  ACCURATELY  ENTER  THE  DATE ON WHICH THE RIGHT TO
CANCEL ENDS.
  (B) (1) THE BORROWER HAS THE RIGHT TO CANCEL, WITHOUT ANY  PENALTY  OR
OBLIGATION,  ANY  CONTRACT WITH A CONSULTANT UNTIL MIDNIGHT OF THE FIFTH
BUSINESS DAY FOLLOWING THE DAY ON WHICH THE CONSULTANT AND THE  BORROWER
SIGN  A CONSULTING CONTRACT. CANCELLATION OCCURS WHEN THE BORROWER, OR A
REPRESENTATIVE OF  THE  BORROWER,  EITHER  DELIVERS  WRITTEN  NOTICE  OF
CANCELLATION  IN  PERSON  TO  THE  ADDRESS  SPECIFIED  IN THE CONSULTING
CONTRACT OR SENDS A WRITTEN COMMUNICATION BY FACSIMILE, BY UNITED STATES
MAIL OR BY AN ESTABLISHED COMMERCIAL LETTER DELIVERY  SERVICE.  A  DATED
PROOF  OF  FACSIMILE  DELIVERY OR PROOF OF MAILING CREATES A PRESUMPTION
THAT THE NOTICE OF CANCELLATION HAS  BEEN  DELIVERED  ON  THE  DATE  THE
FACSIMILE  IS  SENT  OR  THE NOTICE IS DEPOSITED IN THE MAIL OR WITH THE
DELIVERY SERVICE. CANCELLATION OF THE CONTRACT SHALL RELEASE THE BORROW-
ER FROM ALL OBLIGATIONS TO PAY FEES OR ANY  OTHER  COMPENSATION  TO  THE
CONSULTANT.
  (2)  THE  CONTRACT  SHALL  BE  ACCOMPANIED  BY  TWO  COPIES OF A FORM,
CAPTIONED "NOTICE OF CANCELLATION" IN AT LEAST TWELVE-POINT  BOLD  TYPE.
THIS FORM SHALL BE ATTACHED TO THE CONTRACT, SHALL BE EASILY DETACHABLE,
AND  SHALL  CONTAIN THE FOLLOWING STATEMENT WRITTEN IN THE SAME LANGUAGE
AS USED IN THE CONTRACT, AND THE CONTRACTOR SHALL INSERT ACCURATE INFOR-
MATION AS TO THE DATE ON WHICH THE RIGHT TO CANCEL ENDS AND THE CONTRAC-
TOR'S CONTACT INFORMATION:
"NOTICE OF CANCELLATION
NOTE: YOU MAY CANCEL THIS CONTRACT, WITHOUT ANY PENALTY  OR  OBLIGATION,
AT ANY TIME BEFORE MIDNIGHT OF (ENTER DATE)
TO  CANCEL THIS CONTRACT, SIGN AND DATE BOTH COPIES OF THIS CANCELLATION
NOTICE AND PERSONALLY DELIVER ONE COPY OR SEND IT BY  FACSIMILE,  UNITED
STATES MAIL, OR AN ESTABLISHED COMMERCIAL LETTER DELIVERY SERVICE, INDI-
CATING CANCELLATION TO THE CONSULTANT AT ONE OF THE FOLLOWING:
NAME OF CONSULTANT
STREET ADDRESS
CITY, STATE, ZIP
FACSIMILE:
I HEREBY CANCEL THIS TRANSACTION.
NAME OF BORROWER:
SIGNATURE OF BORROWER:
DATE:             "
  (3)  WITHIN  TEN  DAYS  FOLLOWING  RECEIPT OF A NOTICE OF CANCELLATION
GIVEN IN ACCORDANCE WITH THIS SUBSECTION, THE  CONSULTANT  SHALL  RETURN
ANY  ORIGINAL  CONTRACT AND ANY OTHER DOCUMENTS SIGNED BY OR PROVIDED BY
THE BORROWER. CANCELLATION SHALL RELEASE THE BORROWER OF ALL OBLIGATIONS
TO PAY ANY FEES OR COMPENSATION TO THE CONSULTANT.
  § 705. PENALTIES AND OTHER PROVISIONS.    (A)  IF  THE  SUPERINTENDENT
FINDS,  AFTER  NOTICE  AND  HEARING,  THAT A CONSULTANT HAS VIOLATED ANY
PROVISION OF THIS ARTICLE, THE SUPERINTENDENT MAY:  (1)  MAKE  NULL  AND
VOID  ANY  AGREEMENT  BETWEEN  THE  BORROWER AND THE CONSULTANT; AND (2)
IMPOSE A CIVIL PENALTY OF NOT MORE THAN TEN THOUSAND  DOLLARS  FOR  EACH
VIOLATION.
  (B)  IF  THE CONSULTANT VIOLATES ANY PROVISION OF THIS ARTICLE AND THE
BORROWER SUFFERS DAMAGE BECAUSE  OF  THE  VIOLATION,  THE  BORROWER  MAY
RECOVER  ACTUAL  AND CONSEQUENTIAL DAMAGES AND COSTS FROM THE CONSULTANT
IN AN ACTION BASED ON THIS ARTICLE. IF THE CONSULTANT  INTENTIONALLY  OR

S. 7508                            123                           A. 9508

RECKLESSLY  VIOLATES  ANY PROVISION OF THIS ARTICLE, THE COURT MAY AWARD
THE BORROWER TREBLE DAMAGES, ATTORNEYS' FEES AND COSTS.
  (C)  ANY PROVISION OF A STUDENT DEBT CONSULTING CONTRACT THAT ATTEMPTS
OR PURPORTS TO LIMIT THE LIABILITY OF THE CONSULTANT UNDER THIS  ARTICLE
SHALL  BE NULL AND VOID. INCLUSION OF SUCH PROVISION SHALL AT THE OPTION
OF THE BORROWER RENDER THE CONTRACT VOID. ANY PROVISION  IN  A  CONTRACT
WHICH ATTEMPTS OR PURPORTS TO REQUIRE ARBITRATION OF ANY DISPUTE ARISING
UNDER  THIS  ARTICLE  SHALL  BE  VOID AT THE OPTION OF THE BORROWER. ANY
WAIVER OF THE PROVISIONS OF THIS ARTICLE SHALL BE VOID AND UNENFORCEABLE
AS CONTRARY TO PUBLIC POLICY.
  (D) THE PROVISIONS OF THIS ARTICLE ARE NOT EXCLUSIVE AND ARE IN  ADDI-
TION TO ANY OTHER REQUIREMENTS, RIGHTS, REMEDIES, AND PENALTIES PROVIDED
BY LAW.
  §  706.  RULES  AND  REGULATIONS.    IN ADDITION TO SUCH POWERS AS MAY
OTHERWISE BE PRESCRIBED BY THIS CHAPTER, THE  SUPERINTENDENT  IS  HEREBY
AUTHORIZED AND EMPOWERED TO PROMULGATE SUCH RULES AND REGULATIONS AS MAY
IN THE JUDGMENT OF THE SUPERINTENDENT BE CONSISTENT WITH THE PURPOSES OF
THIS  ARTICLE,  OR  APPROPRIATE FOR THE EFFECTIVE ADMINISTRATION OF THIS
ARTICLE.
  § 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

                                SUBPART C

  Section 1. The education law is amended by adding a new  article  13-C
to read as follows:

                              ARTICLE 13-C
                          STUDENT LOAN DEBTORS
SECTION 633. NO DENIAL OF LICENSES FOR STUDENT LOAN DEBTORS.
  §  633.  NO  DENIAL OF LICENSES FOR STUDENT LOAN DEBTORS. 1.  NOTWITH-
STANDING ANY OTHER PROVISION OF LAW, RULE, OR REGULATION TO THE  CONTRA-
RY,  ANY AGENCY, DEPARTMENT, OFFICE, BOARD, OR ANY OTHER INSTRUMENTALITY
OF THE STATE AUTHORIZED TO ISSUE  PROFESSIONAL  LICENSES  IN  THE  STATE
SHALL BE PROHIBITED FROM TAKING ANY ADVERSE ACTION AGAINST ANY LICENSEE,
INCLUDING BUT NOT LIMITED TO FINE, NONRENEWAL, SUSPENSION, OR REVOCATION
OF  A  PROFESSIONAL  LICENSE,  BASED UPON THE STATUS OF ANY STUDENT LOAN
OBLIGATION OF SUCH LICENSEE.
  2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE, OR REGULATION  TO
THE  CONTRARY,  ANY  AGENCY,  DEPARTMENT,  OFFICE,  BOARD,  OR ANY OTHER
INSTRUMENTALITY OF THE STATE AUTHORIZED TO ISSUE  PROFESSIONAL  LICENSES
IN  THE STATE SHALL BE PROHIBITED FROM TAKING ANY ADVERSE ACTION RELATED
TO ISSUANCE OF A PROFESSIONAL LICENSE AGAINST ANY INDIVIDUAL  OR  APPLI-
CANT  FOR A PROFESSIONAL LICENSE, INCLUDING BUT NOT LIMITED TO DENIAL OF
A PROFESSIONAL LICENSE OR DISAPPROVAL OF AN APPLICATION  FOR  A  PROFES-
SIONAL  LICENSE, BASED UPON THE STATUS OF ANY STUDENT LOAN OBLIGATION OF
SUCH INDIVIDUAL OR APPLICANT FOR A PROFESSIONAL LICENSE.
  3. FOR PURPOSES OF THIS SECTION "PROFESSIONAL LICENSE" MEANS  AUTHORI-
ZATION,  LICENSURE, OR CERTIFICATION TO PRACTICE ANY PROFESSIONAL ACTIV-
ITY IN THE STATE, WHETHER TEMPORARY OR PERMANENT, ISSUED BY ANY  AGENCY,
DEPARTMENT, OFFICE, BOARD, OR ANY OTHER INSTRUMENTALITY OF THE STATE.
  4.  FOR  PURPOSES  OF  THIS SECTION "STUDENT LOAN" MEANS ANY LOAN TO A
BORROWER TO FINANCE POSTSECONDARY EDUCATION OR EXPENSES RELATED TO POST-
SECONDARY EDUCATION.
  § 2. This act shall take effect immediately.

S. 7508                            124                           A. 9508

  § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or subpart 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 subpart 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.
  §  3.  This  act shall take effect immediately provided, however, that
the applicable effective date of Subparts A through C of this act  shall
be as specifically set forth in the last section of such Subparts.

                                 PART X

  Section  1. Section 2 of chapter 584 of the laws of 2011, amending the
public authorities law relating to the powers and duties of the dormito-
ry authority of the state of New York relative to the  establishment  of
subsidiaries  for certain purposes, as amended by section 1 of part P of
chapter 58 of the laws of 2016, is amended to read as follows:
  § 2. This act shall take effect immediately and shall  expire  and  be
deemed repealed on July 1, [2018] 2020; provided however, that the expi-
ration  of  this  act  shall  not  impair or otherwise affect any of the
powers, duties, responsibilities, functions, rights  or  liabilities  of
any  subsidiary  duly  created  pursuant  to  subdivision twenty-five of
section 1678 of the public authorities law prior to such expiration.
  § 2. This act shall take effect immediately.

                                 PART Y

  Section 1. Section 3 of part S of chapter  58  of  the  laws  of  2016
amending  the  New York state urban development corporation act relating
to transferring the statutory authority for the promulgation of  market-
ing  orders  from  the  department of agriculture and markets to the New
York state urban development corporation is amended to read as follows:
  § 3. This act shall take effect on the ninetieth day  after  it  shall
have  become  a  law  [and shall expire and be deemed repealed two years
after such date]; provided, however, that any assessment due and payable
under such marketing orders shall be remitted to the  urban  development
corporation starting 30 days after such effective date.
  § 2. This act shall take effect immediately.

                                 PART Z

  Section  1.  This  act  shall be known and may be cited as the "empire
forests for the future initiative".
  § 2. Subdivision 9 of section 480 of the real  property  tax  law,  as
added by chapter 814 of the laws of 1974, is amended to read as follows:
  9. No lands shall be classified pursuant to this section after Septem-
ber  first, nineteen hundred seventy-four. As to lands classified pursu-
ant to this section prior to such date, the owner thereof may  elect  to
continue  to  have  such lands so classified, subject to all the duties,
responsibilities and privileges under this section, or  he  OR  SHE  may
elect  to  make  application  for certification pursuant to section four
hundred eighty-a hereof UNTIL MARCH FIRST, TWO  THOUSAND  NINETEEN    OR
SECTION FOUR HUNDRED EIGHTY-B OF THIS TITLE.

S. 7508                            125                           A. 9508

  § 3. Section 480-a of the real property tax law, as amended by chapter
428  of  the  laws of 1987, paragraph (a) of subdivision 1 as amended by
chapter 396 of the laws of 2008, subparagraph (ii) of paragraph  (a)  of
subdivision 3 as further amended by subdivision (b) of section 1 of part
W of chapter 56 of the laws of 2010, subdivision 4 as amended by chapter
316  of  the  laws of 1992 and paragraph (b) of subdivision 4 as further
amended by subdivision (b) of section 1 of part W of chapter 56  of  the
laws  of  2010,  paragraphs  (a)  and (c) of subdivision 4 as amended by
chapter 440 of the laws of 1993 and paragraph (c) of  subdivision  4  as
further  amended by subdivision (b) of section 1 of part W of chapter 56
of the laws of 2010, paragraph (e) of subdivision 7 as amended by  chap-
ter  590 of the laws of 1994 and paragraph (i) of subdivision 7 as added
by chapter 2 of the laws of 1997, is amended to read as follows:
  § 480-a. Taxation of forest land UNDER AN  APPROVED  MANAGEMENT  PLAN.
1. As used in this section:
  (a)  "Approved  management plan" shall mean[:  (i)] a plan approved by
the department for the management  of  an  eligible  tract  which  shall
contain  requirements  and standards to ensure the continuing production
of a merchantable forest crop selected  by  the  owner.  Every  approved
management  plan  shall set forth requirements and standards relating to
stocking, cutting, forest management access, and any  specified  use  of
the  eligible  tract  other  than  for  the production of a merchantable
forest crop which is  desired  by  the  owner  and  compatible  with  or
supportive  of  the continuing production of a merchantable forest crop.
Such plan shall include provisions accommodating endangered and  threat-
ened  animals  and  plants.  Such  plan must be prepared by or under the
direct supervision of a DEPARTMENT APPROVED  forester  who  may  be  the
owner  or  an  agent of the owner, including an industrial forester or a
cooperating consultant forester[; or
  (ii) participation in a forest certification program (such  as  Forest
Stewardship  Council  certification,  Sustainable  Forestry  Initiative;
American Tree Farm Program, etc.) recognized in the regulations  of  the
department].
  (b) "Commitment" shall mean a declaration to the [department] ASSESSOR
AND  COUNTY  CLERK  made  on an annual basis by the owner of a certified
eligible tract committing such tract to continued forest crop production
for the next succeeding ten years under  an  approved  management  plan.
THE  DOCUMENT  ON  WHICH  THE  COMMITMENT  IS MADE SHALL BE KNOWN AS THE
"COMMITMENT FORM" AND  SHALL  INCLUDE  THE  "VERIFICATION  OF  CONTINUED
ELIGIBILITY"  AS DEFINED BY PARAGRAPH (I) OF THIS SUBDIVISION. A COMMIT-
MENT FORM WITHOUT A PROPERLY COMPLETED VERIFICATION OF CONTINUED  ELIGI-
BILITY SHALL HAVE NO LEGAL EFFECT.
  (c)  "Cooperating consultant forester" shall mean a qualified forester
who, or a qualified forestry consultant firm which, has entered into  an
agreement  with  the  department  under  the  New York state cooperating
consultant foresters program pursuant to section 9-0713 of the  environ-
mental conservation law.
  (d)  "Department" shall mean the department of environmental conserva-
tion.
  (e) "Eligible tract" shall mean a tract of privately owned forest land
of at least fifty contiguous acres, exclusive of any portion thereof not
devoted to the production of forest crops.  Lands  divided  by  federal,
state, county or town roads, easements or rights-of-way, or energy tran-
smission  corridors  or similar facilities will be considered contiguous
for purposes of this section, unless vehicular access for forest manage-
ment purposes is precluded. Lands from which a merchantable forest  crop

S. 7508                            126                           A. 9508

has been cut or removed within three years prior to the time of applica-
tion for certification under this section will be ineligible unless such
cutting  or  removal  was accomplished under a forest management program
designed to provide for the continuing production of merchantable forest
crops AS DETERMINED BY THE STATE FORESTER OR HIS OR HER DESIGNEE.
  (f)  "Forest land" shall mean land exclusively devoted to and suitable
for forest crop production through natural regeneration or through fore-
station and shall be stocked with a stand of forest trees sufficient  to
produce  a  merchantable  forest crop within thirty years of the time of
original certification.
  (g) "Merchantable forest crop" shall mean timber or pulpwood,  includ-
ing  veneer  bolts, sawlogs, poles, posts and fuelwood, that is produced
on forest land, has a value in the market and may be sold.
  (h) ["Stumpage value"  shall  mean  the  current  market  worth  of  a
merchantable  forest  crop  as  it  stands at the time of sale, cutting,
required cutting or removal] "CERTIFICATE OF ELIGIBILITY" SHALL  MEAN  A
CERTIFICATE  ISSUED  BY  THE  DEPARTMENT TO THE LANDOWNER OF AN ELIGIBLE
TRACT THAT CONFIRMS SUCH ELIGIBLE TRACT MEETS ALL  REQUIREMENTS  OF  THE
APPROVED MANAGEMENT PLAN FOR THE TRACT.
  (I)  "VERIFICATION  OF  CONTINUED ELIGIBILITY" SHALL MEAN A PORTION OF
THE COMMITMENT FORM, PRESCRIBED BY THE DEPARTMENT, PREPARED  AND  SIGNED
BY THE LANDOWNER WHICH CERTIFIES THAT SUCH LANDOWNER CONTINUES TO SATIS-
FY  ALL  CONDITIONS  AND  REQUIREMENTS  OF HIS OR HER INITIAL ENROLLMENT
UNDER THIS SECTION.
  2. (a) An owner of an eligible tract may [make application]  APPLY  to
the  department  for  [certification] A CERTIFICATE OF ELIGIBILITY under
this section on forms prescribed by the department.  If  the  department
finds  that  such  tract is an eligible tract it shall forward a certif-
icate of [approval] ELIGIBILITY to the owner thereof[, together with the
approved management plan, and a copy of a commitment  certified  by  the
department for the eligible tract].
  (b)  The department shall, after public hearings, adopt and promulgate
rules and regulations necessary for the implementation  of  the  depart-
ment's  responsibilities  pursuant  to  this  section.  Such regulations
relating to approved management plans or amendments thereto may  provide
for  alternative  or  contingent requirements and standards based on the
size and nature of the tract and other criteria consistent with environ-
mentally and economically sound silvicultural practices.
  (c) Any tract certified  pursuant  hereto  shall  be  subject  to  the
provisions  of  this section. [The] WHEN PROPERTY IS TRANSFERRED OR SOLD
TO ONE OR MORE FAMILY MEMBERS OF THE LANDOWNER  AND  THE  NEW  OWNER  OR
OWNERS  CHOOSE TO CONTINUE PARTICIPATING IN THE PROGRAM AS AUTHORIZED BY
PARAGRAPH (A) OF SUBDIVISION TWELVE OF THIS SECTION, THE obligations  of
this section shall devolve upon and the benefits inure to [the] SUCH NEW
owner[, his heirs, successors and assigns] OR OWNERS.
  (D)  NO  NEW  OR  ADDITIONAL TRACT SHALL BE ELIGIBLE FOR CERTIFICATION
UNDER AN APPROVED MANAGEMENT PLAN AFTER MARCH FIRST, TWO THOUSAND  NINE-
TEEN.
  3.  (a)  To qualify for a forest land exemption under this section the
owner of a certified eligible tract shall:
  (i) file the certificate of [approval] ELIGIBILITY in  the  office  of
the  clerk  of  the  county or counties in which such tract is situated.
Such certificate shall specify  that  the  tract  described  therein  is
committed  to continued forest crop production UNDER AN APPROVED MANAGE-
MENT PLAN for an initial period of  ten  years.  Upon  receipt  of  such
certificate,  the  county  clerk shall record the same in the books kept

S. 7508                            127                           A. 9508

for the recording of deeds and shall index the same in  the  deed  index
against  the  name of the owner of the property. Until notice of revoca-
tion of the certificate of [approval] ELIGIBILITY has been recorded  and
indexed  as  provided  in  subdivision seven or eight of this section, a
certificate that has been recorded and indexed pursuant to this subdivi-
sion shall give notice that  the  certified  tract  is  subject  to  the
provisions of this section; and
  (ii)  prior  to  the taxable status date for the first assessment roll
upon which such exemption is sought, file  an  initial  application  for
exemption  with  the  appropriate  assessor  on  forms prescribed by the
commissioner. Such application  must  be  accompanied  by  a  [certified
commitment]  CERTIFICATE OF ELIGIBILITY issued by the department [pursu-
ant to subdivision two of this section] AND THE COMMITMENT FORM; and
  (iii) prior to the taxable status date for each subsequent  assessment
roll  upon  which  such  exemption  is sought, file with the appropriate
assessor a [certified] commitment [of] FORM FOR such tract to  continued
forest  crop  production  UNDER AN APPROVED MANAGEMENT PLAN for the next
succeeding ten years [under the approved  management  plan.  Application
for  such  commitment  shall  be  made by the owner of such tract to the
department, and the commitment shall be certified by the department].
  (b) If [the assessor is  satisfied  that]  the  requirements  of  this
section  are met, [he or she] THE ASSESSOR shall approve the application
and such eligible tract shall be exempt from taxation pursuant to subdi-
vision four of this section to be effective  as  of  the  first  taxable
status date occurring subsequent to such approval, and shall continue to
be  so  exempt  thereafter upon receipt by the assessor of a [certified]
commitment FORM filed in accordance with subparagraph (iii) of paragraph
(a) of this subdivision and so long as the certification of the eligible
tract [shall] HAS not [be] BEEN revoked by the department.
  (c) Failure on the part of the owner to file the  [certified]  commit-
ment FORM in any year following initial certification will result in the
termination  of  the forest land exemption under this section[, if any,]
applicable to the property for that and  succeeding  taxable  years  for
which  no  such commitments are filed. Failure to file a commitment FORM
will not constitute a conversion of the tract or breach of the  approved
management  plan,  pursuant to subdivision seven hereof, and the commit-
ment of the property  to  forest  crop  production  under  the  approved
management plan shall remain in force for the next succeeding nine years
following  the last taxable year for which a [certified] commitment FORM
was filed.
  (d) Following failure to file a [certified] commitment FORM in one  or
more  years,  in  order  to  obtain  a  forest land exemption under this
section, an owner of a certified tract may submit a [certified]  commit-
ment  FORM  to the assessor before the taxable status date in any subse-
quent year, except that a new application under paragraph (a) of  subdi-
vision two of this section and subparagraph (i) of paragraph (a) of this
subdivision  also shall be required if more than five years have elapsed
since the owner's last [certified] commitment FORM was filed.  Such  new
application  also shall be required whenever, during the preceding year,
the approved management plan has been amended with respect to the  acre-
age or location of forest land committed to forest crop production under
this section.
  4.  (a)  Certified  eligible  tracts approved for exemption under this
section shall be exempt from taxation to the extent of eighty per centum
of the assessed valuation thereof, or to the extent  that  the  assessed
valuation exceeds the amount resulting from multiplying the latest state

S. 7508                            128                           A. 9508

equalization  rate or, where a special equalization rate has been estab-
lished pursuant to section twelve hundred twenty-four  of  this  chapter
for the purposes of this section, the special equalization rate by forty
dollars per acre, whichever is the lesser.
  (b)  The  assessed value of the exemption, if any, granted pursuant to
this section shall be entered by the assessor on the assessment roll  in
such manner as shall be prescribed by the commissioner.
  (c)  Where  a  special  equalization  rate has been established by the
commissioner pursuant to section  twelve  hundred  twenty-four  of  this
chapter, the assessor is directed and authorized to recompute the forest
land exemption on the assessment roll by applying such special equaliza-
tion rate instead of the latest state equalization rate in computing the
forest  land  exemption,  and to make the appropriate corrections on the
assessment roll, subject to the  provisions  of  title  two  of  article
twelve of this chapter. Upon completion of the final assessment roll or,
where  a special equalization rate has been established, upon recomputa-
tion of the forest land exemption, the assessor  shall  certify  to  the
department  each  exemption granted pursuant to this section in a manner
prescribed by the commissioner.
  5. (a) Whenever any cutting of the merchantable  forest  crop  on  any
certified  eligible  tract  is  proposed during the period of commitment
pursuant to subdivision three of this section, the owner shall give  not
less  than  thirty  days'  notice to the department in a manner and upon
such form as may be prescribed by  the  department.  Such  notice  shall
include  information  as to the [stumpage value,] amount and location of
such cutting. [The department shall, within fifteen days  after  receipt
of  such  notice  from the owner, certify the stumpage value, if any, to
the owner and to the county treasurer of the county or counties in which
the tract is situated. No later than thirty days after receipt  of  such
certification  of  value, the owner shall pay a six percentum tax on the
certified stumpage value of the merchantable forest crop to such  county
treasurer.]
  (b)  [Notwithstanding the provisions of paragraph (a) of this subdivi-
sion, if the stumpage value of a merchantable forest crop will be deter-
mined with reference to a scale to be conducted after  the  commencement
of  the  proposed cutting, the owner may elect to be taxed in accordance
with this paragraph. Such election shall be made not  less  than  thirty
days  in advance of commencement of the cutting, in such manner and upon
such form as may be prescribed by  the  department.  Such  notice  shall
include  information as to the estimated volume, scaling method, and the
schedule and length of the cutting period, not to exceed one year. If  a
proper  election  has  been  made in accordance with this paragraph, the
department shall so notify the owner before any cutting takes  place  on
the  eligible  tract,  and it shall certify the scaled stumpage value to
the owner of the tract and to the county  treasurer  of  the  county  or
counties when the cutting has concluded. No later than thirty days after
the  receipt  of  such certification of value, the owner shall pay a six
per centum tax on the stumpage value of the merchantable forest crop  to
such county treasurer.
  (c)  In the event that a tax required by this subdivision or by subdi-
vision six of this section shall not be timely paid, it shall be  levied
and  collected, together with any penalty or penalties determined pursu-
ant to subdivision seven of this section, in the same manner and at  the
same  time  as  other taxes imposed and levied on the next completed tax
roll of such county or counties.

S. 7508                            129                           A. 9508

  (d)] Notwithstanding the foregoing provisions of this subdivision  and
the provisions of subdivision six of this section, the owner of any land
certified  under  this  section  may make all intermediate noncommercial
cuttings, as prescribed in the approved management plan, and may annual-
ly  cut,  in accordance with sound forestry practices, NOT MORE THAN ten
standard cords or the equivalent  for  such  owner's  own  use,  without
notice [and free of tax imposed by this section].
  6.  (a)  The department may serve notice upon the owner of a certified
tract directing such owner to  make  a  cutting  as  prescribed  in  the
approved management plan for such tract. Should such cutting involve the
sale  or utilization of a merchantable forest crop, not less than thirty
days in advance of cutting the owner shall give notice to the department
of the [stumpage value,] amount and location of the cutting  on  a  form
prescribed  by the department. [The department shall within fifteen days
after receipt of such notice from the owner, certify the stumpage value,
if any, to the owner and to the county treasurer of the county or  coun-
ties  in  which  such tract is situated. No later than thirty days after
receipt of such certification of value, the owner shall pay  a  six  per
centum tax on the certified stumpage value to such county treasurer.]
  (b)  Any  cutting of a merchantable forest crop under this subdivision
must be conducted within two years from  the  date  of  service  of  the
notice  upon  the  owner  issued by the department. [Upon failure of the
owner within such period to conduct such cutting, the  department  shall
certify  to the owner and the county treasurer of the county or counties
the stumpage value of such merchantable forest crop. No later than thir-
ty days after receipt of such certification of value,  the  owner  shall
pay  a six per centum tax on the certified stumpage value to such county
treasurer.]
  (c) Any noncommercial cutting under this subdivision must be conducted
within one year from the date of service of the notice  upon  the  owner
issued by the department.
  (d)  If  such owner, within the period prescribed by this subdivision,
makes such cuttings as directed  by  the  department,  the  tract  shall
continue  to  be certified as long as the owner shall continue to comply
with the provisions of this section and manage the same  in  the  manner
prescribed in the approved management plan for such tract.
  7.  (a) The department shall, after notice and hearing, issue a notice
of violation of this section for any certified tract whenever  it  finds
that:
  (i) any tract or portion thereof is converted to a use which precludes
management of the land for forest crop production; or
  (ii)  the  owner fails to give WRITTEN notice of a proposed cutting on
such tract [or fails to timely pay the appropriate tax on  the  stumpage
value of the merchantable forest crop determined pursuant to subdivision
five or six of this section]; or
  (iii)  the owner fails to comply with the approved management plan for
such tract at any time during the commitment period; or
  (iv) the owner fails to make a timely cutting in accordance  with  the
provisions of subdivision six of this section after service of notice by
the department to make such a cutting.
  (b) Notwithstanding the finding of an occurrence described by subpara-
graph  (ii),  (iii)  or  (iv)  of paragraph (a) of this subdivision, the
department, upon prior notice to the appropriate assessor, may determine
that a violation has not occurred if the failure to comply  was  due  to
reasons  beyond  the  control  of  the  owner  and  such  failure can be

S. 7508                            130                           A. 9508

corrected forthwith without significant effect on the overall purpose of
the management plan.
  (c)  The  owner of [such] AN ELIGIBLE tract, following the issuance of
such notice by the department for one or more of the reasons  set  forth
in  paragraph  (a) of this subdivision, shall be subject to a penalty as
provided in paragraph (d) or (e) of this subdivision, whichever applies.
Penalties imposed by this section shall be subject to  interest  charges
at  the  rate established pursuant to section nine hundred twenty-four-a
of this chapter for each applicable year or, for years prior to nineteen
hundred eighty-four, at a rate of six per centum per  annum  compounded.
Such  interest shall accrue in the year with reference to which a penal-
ty, or portion thereof, is attributed.
  (d) Except as otherwise provided in paragraph  (e)  of  this  subdivi-
sion[,]:
  (I)  the penalty imposed under paragraph (c) of this subdivision FOR A
PARCEL THAT HAS BEEN ENROLLED UNDER THIS SECTION FOR LESS THAN TEN YEARS
shall be computed by multiplying by two and one-half the amount of taxes
that would have been levied on the forest land exemption entered on  the
assessment  roll  pursuant  to  subdivision four of this section for the
current year and any prior years in which such an exemption was granted,
utilizing the applicable tax rate for the  current  year  and  for  such
prior years[, not to exceed a total of ten years].
  (II) THE PENALTY IMPOSED UNDER PARAGRAPH (C) OF THIS SUBDIVISION FOR A
PARCEL  THAT  HAS  BEEN ENROLLED UNDER THIS SECTION FOR A MINIMUM OF TEN
YEARS BUT LESS THAN TWENTY YEARS SHALL BE COMPUTED BY MULTIPLYING BY ONE
AND ONE-HALF THE AMOUNT OF TAXES THAT WOULD  HAVE  BEEN  LEVIED  ON  THE
FOREST  LAND EXEMPTION ENTERED ON THE ASSESSMENT ROLL PURSUANT TO SUBDI-
VISION FOUR OF THIS SECTION FOR THE CURRENT  YEAR  AND  PRIOR  YEARS  IN
WHICH  SUCH  AN EXEMPTION WAS GRANTED, UTILIZING THE APPLICABLE TAX RATE
FOR THE CURRENT YEAR AND FOR SUCH PRIOR YEARS, NOT TO EXCEED A TOTAL  OF
TEN YEARS.
  (III)  THE PENALTY IMPOSED UNDER PARAGRAPH (C) OF THIS SUBDIVISION FOR
A PARCEL THAT HAS BEEN ENROLLED UNDER THIS  SECTION  FOR  A  MINIMUM  OF
TWENTY YEARS SHALL BE THE AMOUNT OF TAXES THAT WOULD HAVE BEEN LEVIED ON
THE  FOREST  LAND  EXEMPTION  ENTERED ON THE ASSESSMENT ROLL PURSUANT TO
SUBDIVISION FOUR OF THIS SECTION FOR THE  CURRENT  YEAR  AND  THE  PRIOR
YEARS  IN  WHICH SUCH AN EXEMPTION WAS GRANTED, UTILIZING THE APPLICABLE
TAX RATE FOR THE CURRENT YEAR AND FOR SUCH PRIOR YEARS, NOT TO EXCEED  A
TOTAL OF TEN YEARS.
  (e) The penalty imposed under paragraph (c) of this subdivision appli-
cable  to converted land which constitutes only a portion of a certified
eligible tract shall be twice the amount determined under paragraph  (d)
of  this  subdivision. In calculating such penalty, only that portion of
the tract that was actually converted to a use that precludes management
of the land for forest crop production shall be used as  the  basis  for
determining the penalty.
  (f) A notice of violation issued under this subdivision shall be given
by the department to the owner and to the county treasurer of the county
or counties in which such tract is located, and the penalty and interest
charges  shall  be  computed  for  each of the municipal corporations in
which such tract is located by such county treasurer. Upon completion of
the computation of the penalty and interest, the county treasurer  shall
give  notice to the owner of the amount of the penalty and interest, and
the amount shall be entered on the next completed tax roll of such coun-
ty or  counties.  Such  penalties  and  interest  shall  be  levied  and
collected  in  the  same  manner and at the same time as other taxes are

S. 7508                            131                           A. 9508

imposed and levied on such roll. Upon collection of such  penalties  and
interest, such county treasurer shall pay the amounts due to each of the
appropriate municipal corporations.
  (g)  Upon  receipt  of  proof  satisfactory to the department that all
penalties[, stumpage taxes] and interest imposed by  this  section  have
been  fully  paid  or satisfied, the department shall revoke the certif-
icate of [approval] ELIGIBILITY issued pursuant to  subdivision  two  of
this  section, and notice of such revocation shall be given to the owner
and to the county clerk of the county or counties in which the tract  is
located.  Upon  receipt  of  such notice of revocation, the county clerk
shall record the same in the books kept for the recording of  deeds  and
shall  index the same in the deed index against the name of the owner of
the property. The county clerk shall also note on the face of  the  last
certificate  of  [approval or certified] ELIGIBILITY AND commitment FORM
previously recorded pursuant to this section the word "REVOKED" followed
by a reference to the liber and page where the notice of  revocation  is
recorded pursuant to this subdivision.
  (h) The certificate of [approval] ELIGIBILITY of a certified tract for
which  no  notice  of violation has been issued shall be revoked without
penalty upon receipt of proof satisfactory to the department  that  nine
years  have passed from the year of the last [certified] commitment FORM
filed with the assessor by the owner pursuant to  subdivision  three  of
this  section.   Notice of such revocation shall be recorded and indexed
as provided in paragraph (g) of this subdivision.
  (i) No fee, penalty or rollback of taxes  otherwise  due  pursuant  to
this  section  may  be  imposed upon the city of New York for failure to
comply with [a certified] AN APPROVED management plan  for  an  eligible
tract that the city acquires for watershed purposes.
  8.  (a)  The  owner  of  a certified tract shall not be subject to any
penalty under this section that would otherwise apply because such tract
or any portion thereof is converted to a  use  other  than  forest  crop
production  by virtue of: (i) an involuntary taking by eminent domain or
other involuntary proceeding, except a tax sale,  or  (ii)  a  voluntary
proceeding,  providing  such  proceeding  involves  the establishment of
rights-of-way for public highway or energy transmission purposes wherein
such corridors have been established subsequent  to  public  hearing  as
needed  in  the public interest and environmentally compatible, or (iii)
oil, gas or mineral  exploration,  development  or  extraction  activity
undertaken  by  an  independent  grantee  pursuant  to  a lease or other
conveyance of subsurface rights recorded more than ten  years  prior  to
the  date  of  the  certificate  of [approval] ELIGIBILITY issued by the
department under subdivision two of this section, or (iv) where all or a
substantial portion of the certified tract is destroyed  or  irreparably
damaged by reason of an act of God or a natural disaster.
  (b) In the event the land so converted to a use other than forest crop
production  constitutes only a portion of such tract, the assessor shall
apportion the assessment, and enter that portion so converted as a sepa-
rately assessed parcel on the  appropriate  portion  of  the  assessment
roll. The assessor shall then adjust the forest land exemption attribut-
able  to  the  portion  of the tract not so converted by subtracting the
proportionate part of the exemption of the converted parcel.
  (c) If the portion so converted divides the tract  into  two  or  more
separate  parcels,  such  remaining parcels not so converted will remain
[certified] ELIGIBLE under this section, regardless of size, except that
should any remaining parcel be no longer accessible for continued forest
crop production, the department shall, after notice and hearing,  revoke

S. 7508                            132                           A. 9508

the  [certification]  CERTIFICATE  OF  ELIGIBILITY  of  the inaccessible
parcel or parcels, and notice of such revocation shall be  recorded  and
indexed  as  provided in subdivision seven of this section. Such revoca-
tion  shall  not  subject  the  owner  of  the tract to penalty, but the
exemption under this section shall no  longer  apply  to  the  tract  or
portion thereof no longer accessible.
  (d)  The  owner  of a certified ELIGIBLE tract shall not be subject to
penalty under this section that would otherwise apply because the forest
crop on the certified ELIGIBLE tract or portion is, through no fault  of
the  owner,  damaged  or destroyed by fire, infestation, disease, storm,
flood, or other natural disaster, act of God, accident, trespass or war.
If a merchantable forest crop is to be cut or removed in connection with
necessary salvage operations resulting from any such  event,  the  owner
shall give notice of cutting[, the department shall certify the stumpage
value,  and  stumpage  tax  shall  be payable, collected and enforced as
provided in subdivisions five and seven of  this  section].  Nothing  in
this paragraph shall be construed to subject any person to penalty under
subdivision  seven  of  this  section for immediate action taken in good
faith in the event of an emergency.
  9.  All  [stumpage  tax,]  penalties  and  interest  charges   thereon
collected  pursuant  to subdivisions five, six and seven of this section
shall be apportioned to the applicable municipal corporations  in  which
such tract is situated.
  10.  (a)  Management plans approved pursuant to this section shall not
be deemed to authorize or permit any practice  or  activity  prohibited,
restricted or requiring further approval under the environmental conser-
vation  law,  or  any  other general or special law of the state, or any
lawful rule or regulation duly promulgated thereunder.
  (b) No otherwise eligible tract, or portion thereof, shall  be  deemed
to  be ineligible for certification or qualification under this section,
and no certificate of [approval] ELIGIBILITY shall be revoked or penalty
imposed, solely on the ground that any  such  law,  rule  or  regulation
partially  restricts  or  requires  further  approval  for  forest  crop
production practices or activities on such tract or portion.
  11. THE OWNER OF AN ELIGIBLE TRACT CERTIFIED UNDER AN APPROVED MANAGE-
MENT PLAN UNDER THIS SECTION AS OF MARCH FIRST,  TWO  THOUSAND  NINETEEN
MAY  WITHDRAW  SUCH  ELIGIBLE  TRACT FROM COMMITMENT, WITHOUT PENALTY OR
OBLIGATION TO FOLLOW THE APPROVED  MANAGEMENT  PLAN  FOR  THE  REMAINING
COMMITMENT  TERM, UNTIL FEBRUARY TWENTY-EIGHTH, TWO THOUSAND TWENTY. THE
OWNER OF AN ELIGIBLE TRACT CERTIFIED UNDER AN APPROVED  MANAGEMENT  PLAN
UNDER  THIS  SECTION  MAY  WITHDRAW SUCH ELIGIBLE TRACT FROM COMMITMENT,
WITHOUT PENALTY, UPON COMMITMENT TO SUSTAINABLE FOREST MANAGEMENT  UNDER
A FOREST CERTIFICATION PROGRAM OF SUCH ELIGIBLE TRACT OR IMPLEMENTING AN
APPROVED  FOREST  MANAGEMENT  PRACTICE  ON  A  QUALIFYING  PORTION UNDER
SECTION FOUR HUNDRED EIGHTY-B OF THIS TITLE AT ANY TIME.
  12. NOTWITHSTANDING ANY LAW TO THE CONTRARY, IN THE EVENT  THAT  LANDS
SUBJECT  TO AN APPROVED MANAGEMENT PLAN AND A CERTIFICATE OF ELIGIBILITY
PURSUANT TO THIS SECTION OF LAW ARE:
  (A) TRANSFERRED OR SOLD TO FAMILY MEMBERS OF THE LANDOWNER, AS DEFINED
BY REGULATIONS OF THE DEPARTMENT, SUCH LANDS MAY CONTINUE TO BE ELIGIBLE
TO PARTICIPATE IN THE PROGRAM AND ALL  MANAGEMENT  OBLIGATIONS  OF  SUCH
LANDS  MAY ALSO BE TRANSFERRED IF SUCH NEW LANDOWNER DESIRES TO CONTINUE
PARTICIPATION IN SUCH PROGRAM.  IF  SUCH  LANDOWNER  DOES  NOT  WANT  TO
CONTINUE  TO PARTICIPATE IN THE PROGRAM AUTHORIZED BY THIS SECTION, SUCH
LANDS SHALL NO LONGER BE ELIGIBLE FOR THE  PROGRAM  AND  SUCH  LANDOWNER
SHALL  BE  RESPONSIBLE  FOR  THE  REMAINING NINE YEARS OF THE COMMITMENT

S. 7508                            133                           A. 9508

INCLUDING ALL MANAGEMENT OBLIGATIONS OR SUCH NEW LANDOWNER MAY APPLY FOR
A PROGRAM PURSUANT TO SECTION FOUR HUNDRED EIGHTY-B OF THIS TITLE AT ANY
TIME.
  (B)  TRANSFERRED  OR SOLD TO NON-FAMILY MEMBERS OF THE LANDOWNER, SUCH
LANDS SHALL NO LONGER BE ELIGIBLE  FOR  PARTICIPATION  IN  THE  PROGRAM.
HOWEVER,  SUCH NEW LANDOWNER SHALL BE RESPONSIBLE FOR THE REMAINING NINE
YEARS OF THE COMMITMENT INCLUDING ALL MANAGEMENT OBLIGATIONS OR SUCH NEW
LANDOWNER MAY APPLY, IF DESIRED, UNDER SECTION FOUR HUNDRED EIGHTY-B  OF
THIS TITLE.
  (C)  THE  SUBJECT  OF  AN  APPLICATION  FOR ELIGIBILITY UNDER A FOREST
MANAGEMENT PRACTICE PLAN PURSUANT TO SECTION FOUR  HUNDRED  EIGHTY-B  OF
THIS  TITLE  AFTER  THE SALE OR TRANSFER OF LAND AS LISTED IN PARAGRAPHS
(A) AND (B) OF THIS SUBDIVISION, SUCH LANDOWNERS SHALL NOT  BE  REQUIRED
TO  CONDUCT  A  QUALIFYING  MANAGEMENT  PRACTICE  TO BE ELIGIBLE FOR THE
PROGRAM AUTHORIZED PURSUANT TO SECTION FOUR  HUNDRED  EIGHTY-B  OF  THIS
TITLE.
  13.  (A)  ANY  COUNTY,  TOWN  OR  SCHOOL  DISTRICT  IN WHICH THE TOTAL
ASSESSED VALUE EXEMPTED BY THIS SECTION AND SECTIONS FOUR HUNDRED EIGHTY
AND FOUR HUNDRED EIGHTY-B OF THIS TITLE REPRESENTS ONE PERCENT  OR  MORE
OF  THE  TOTAL TAXABLE ASSESSED VALUE ON THE FINAL TAX ROLL, AS COMPUTED
AND VERIFIED BY THE DEPARTMENT OF TAXATION AND FINANCE, SHALL BE  ELIGI-
BLE TO RECEIVE FORESTRY EXEMPTION ASSISTANCE.
  (B)(I)  THE  COUNTY  TREASURER  OF  ANY ELIGIBLE COUNTY SHALL ANNUALLY
SUBMIT TO THE DEPARTMENT OF TAXATION AND FINANCE A LIST OF  ANY  CHANGES
TO  THE  ASSESSED  VALUE,  TAXABLE  STATUS  OR ACREAGE OF ALL LANDS MADE
SUBSEQUENT TO THE FILING OF THOSE ASSESSMENTS ROLLS  UPON  WHICH  COUNTY
TAXES  ARE  EXTENDED, AND THE COUNTY TAX RATE AND TOWN TAX RATE EXTENDED
AGAINST ANY PARCEL RECEIVING ONE OF THOSE EXEMPTIONS.  SUCH  LIST  SHALL
INCLUDE A STATEMENT OF THE TOTAL TAXABLE ASSESSED VALUE, BOTH BEFORE AND
AFTER  APPLICATION  OF  THE  EXEMPTION, OF THE COUNTY AND OF EACH LISTED
TOWN AND PARCEL.
  (II) THE BUSINESS MANAGER OF ANY ELIGIBLE SCHOOL DISTRICT SHALL  ANNU-
ALLY  SUBMIT  TO  THE  DEPARTMENT  OF TAXATION AND FINANCE A LIST OF ANY
CHANGES TO THE ASSESSED VALUE, TAXABLE STATUS OR ACREAGE  OF  ALL  LANDS
MADE  SUBSEQUENT  TO  THE  FILING  OF  THOSE ASSESSMENT ROLLS UPON WHICH
SCHOOL TAXES ARE EXTENDED, AND THE SCHOOL TAX RATE EXTENDED AGAINST  ANY
PARCEL  RECEIVING  ONE  OF  THOSE  EXEMPTIONS. SUCH LIST SHALL INCLUDE A
STATEMENT OF THE TOTAL TAXABLE ASSESSED VALUE,  BOTH  BEFORE  AND  AFTER
APPLICATION  OF THE EXEMPTION, OF THE SCHOOL DISTRICT AND OF EACH LISTED
PARCEL.
  (III) LISTS PREPARED PURSUANT TO THIS PARAGRAPH SHALL  BE  FILED  WITH
THE DEPARTMENT OF TAXATION AND FINANCE WITHIN THIRTY DAYS OF THE LEVY OF
TAXES  EACH YEAR. IN THE EVENT THAT A TAX ROLL OR FINAL ROLL IS REVISED,
CORRECTED, OR ALTERED FOR ANY REASON WITHIN  THIRTY-SIX  MONTHS  OF  THE
FILING  OF  SUCH LIST, A COUNTY, TOWN OR SCHOOL DISTRICT SHALL SO NOTIFY
THE DEPARTMENT OF TAXATION AND FINANCE. THE DEPARTMENT OF  TAXATION  AND
FINANCE  SHALL  THEREUPON  INCREASE OR DECREASE THE NEXT PAYMENT OF SUCH
ASSISTANCE TO THE AFFECTED COUNTY, TOWN AND/OR SCHOOL  DISTRICT  TO  THE
EXTENT  THE  PRIOR  PAYMENT  WAS  TOO  LOW  OR TOO HIGH IN LIGHT OF SUCH
REVISION, CORRECTION, OR ALTERATION.
  (C) THE DEPARTMENT OF TAXATION AND FINANCE SHALL ANNUALLY COMPUTE  THE
AMOUNT OF FORESTRY EXEMPTION ASSISTANCE PAYABLE TO OR FOR THE BENEFIT OF
A COUNTY, TOWN OR SCHOOL DISTRICT.
  (D)  (I)  SUBJECT  TO  APPROPRIATION, THE AMOUNT OF FORESTRY EXEMPTION
ASSISTANCE PAID TO A COUNTY, TOWN OR SCHOOL DISTRICT  PURSUANT  TO  THIS
SUBDIVISION  IN  ANY  YEAR SHALL EQUAL THE TAX EXEMPT VALUE THAT EXCEEDS

S. 7508                            134                           A. 9508

ONE PERCENT OF THE REDUCED TOTAL TAXABLE ASSESSED VALUE, AS COMPUTED  BY
PARAGRAPH  (A)  OF  THIS  SUBDIVISION,  MULTIPLIED BY THE APPLICABLE TAX
RATE, AS DETERMINED BY THE COMMISSIONER OF TAXATION AND FINANCE, IN SUCH
TOWN, COUNTY, OR SCHOOL DISTRICT.
  (II)  ANY FORESTRY EXEMPTION ASSISTANCE PROVIDED TO A COUNTY OR SCHOOL
DISTRICT UNDER THIS SUBDIVISION IN ANY YEAR  SHALL  BE  REDUCED  BY  THE
AMOUNT  OF  SMALL  GOVERNMENT  ASSISTANCE  PAID TO SUCH COUNTY OR SCHOOL
DISTRICT IN THE CURRENT STATE FISCAL YEAR, AND, IN THE CASE OF  A  TOWN,
SHALL  BE  REDUCED  BY THE AMOUNT OF SMALL GOVERNMENT ASSISTANCE PAID TO
SUCH TOWN IN STATE FISCAL  YEAR  TWO  THOUSAND  FOUR-TWO  THOUSAND  FIVE
PURSUANT TO CHAPTER FIFTY OF THE LAWS OF TWO THOUSAND FOUR, AND SHALL BE
FURTHER REDUCED BY THE AMOUNT THAT WAS ADDED TO THE BASE LEVEL GRANT FOR
SUCH  TOWN  PURSUANT TO SUBPARAGRAPH EIGHT OF PARAGRAPH B OF SUBDIVISION
TEN OF SECTION FIFTY-FOUR OF THE STATE FINANCE LAW AS ADDED  BY  SECTION
TWO  OF PART M OF CHAPTER FIFTY-SIX OF THE LAWS OF TWO THOUSAND FIVE, AS
REPORTED TO THE DEPARTMENT OF TAXATION AND FINANCE BY  THE  DIVISION  OF
THE BUDGET.
  (E)  THE  DEPARTMENT OF TAXATION AND FINANCE SHALL ANNUALLY CERTIFY TO
THE STATE COMPTROLLER THE AMOUNT OF FORESTRY EXEMPTION ASSISTANCE  PAYA-
BLE  PURSUANT TO THIS SUBDIVISION, AND SHALL MAIL A COPY OF SUCH CERTIF-
ICATION TO THE COUNTY TREASURER OF EACH COUNTY AND BUSINESS  MANAGER  OF
EACH  SCHOOL  DISTRICT  CONTAINING  ELIGIBLE PRIVATE FOREST TRACTS. SUCH
FORESTRY EXEMPTION ASSISTANCE SHALL BE PAID ON AUDIT AND WARRANT OF  THE
COMPTROLLER OUT OF MONIES APPROPRIATED BY THE LEGISLATURE, PROVIDED THAT
IF  AN  APPROPRIATION DOES NOT FULLY REIMBURSE ALL IMPACTED TOWNS, COUN-
TIES AND SCHOOL DISTRICTS, THE AMOUNT SHALL BE PROVIDED ON  A  PRO  RATA
BASIS TO EACH ELIGIBLE TOWN, COUNTY AND SCHOOL DISTRICT.
  §  4.  The  real  property  tax law is amended by adding a new section
480-b to read as follows:
  § 480-B. TAXATION OF FOREST LAND UNDER A FOREST  PRACTICE  PROGRAM  OR
FOREST CERTIFICATION PROGRAM. 1. AS USED IN THIS SECTION:
  (A)  "AGRICULTURAL LAND" SHALL MEAN LAND THAT HAS RECEIVED AN AGRICUL-
TURAL ASSESSMENT PURSUANT TO SECTION THREE HUNDRED FIVE OR SECTION THREE
HUNDRED SIX OF THE AGRICULTURE AND MARKETS LAW, PROVIDED THAT FARM WOOD-
LAND THAT HAS RECEIVED AN AGRICULTURAL ASSESSMENT IN EACH OF THE  PREVI-
OUS  FIVE  YEARS MAY QUALIFY FOR THE EXEMPTION PROVIDED BY THIS SECTION.
FARM WOODLAND THAT QUALIFIES FOR AND RECEIVES THIS EXEMPTION  SHALL  NOT
ALSO RECEIVE AN AGRICULTURAL ASSESSMENT.
  (B)  "COMMITMENT"  SHALL MEAN A DECLARATION TO THE ASSESSOR AND COUNTY
CLERK MADE ON AN ANNUAL BASIS BY THE OWNER OF A CERTIFIED ELIGIBLE TRACT
EITHER (I) COMMITTING SUCH TRACT TO SUSTAINABLE  FOREST  MANAGEMENT  FOR
THE  NEXT  SUCCEEDING TEN YEARS UNDER A FOREST CERTIFICATION PROGRAM, OR
(II) COMMITTING SUCH TRACT TO SUSTAINABLE FORESTRY AND OPEN SPACE  PRES-
ERVATION  FOR  THE  NEXT  SUCCEEDING TEN YEARS UNDER A FOREST MANAGEMENT
PRACTICE PLAN. THE  COMMITMENT  MADE  SHALL  BE  ON  A  COMMITMENT  FORM
PRESCRIBED  BY  THE  DEPARTMENT,  AND  SHALL INCLUDE THE VERIFICATION OF
CONTINUED ELIGIBILITY. A COMMITMENT FORM WITHOUT  A  PROPERLY  COMPLETED
VERIFICATION OF CONTINUED ELIGIBILITY SHALL BE OF NO LEGAL EFFECT.
  (C)  "CERTIFICATE  OF  ELIGIBILITY" SHALL MEAN A CERTIFICATE ISSUED BY
THE DEPARTMENT AND SENT TO THE  LANDOWNER  OF  AN  ELIGIBLE  TRACT  THAT
DEMONSTRATES SUCH TRACT MEETS ALL REQUIREMENTS OF A FOREST CERTIFICATION
PROGRAM OR FOREST MANAGEMENT PRACTICE PLAN IN WHICH IT IS ENROLLED.
  (D)  "DEPARTMENT" SHALL MEAN THE DEPARTMENT OF ENVIRONMENTAL CONSERVA-
TION.
  (E) "ELIGIBLE TRACT" SHALL MEAN A TRACT OF PRIVATELY OWNED LAND OF  AT
LEAST TWENTY-FIVE CONTIGUOUS ACRES, EXCLUSIVE OF ANY PORTION THEREOF NOT

S. 7508                            135                           A. 9508

DEVOTED  TO  FOREST  OR  OTHER OPEN SPACE, AS DEFINED IN REGULATIONS, OF
WHICH AT LEAST HALF OF THE ACRES MUST BE FOREST LAND. LANDS  DIVIDED  BY
FEDERAL,  STATE,  COUNTY  OR  TOWN ROADS, EASEMENTS OR RIGHTS-OF-WAY, OR
ENERGY  TRANSMISSION  CORRIDORS OR SIMILAR FACILITIES WILL BE CONSIDERED
CONTIGUOUS FOR PURPOSES OF THIS SECTION,  UNLESS  VEHICULAR  ACCESS  FOR
FOREST MANAGEMENT PURPOSES IS PRECLUDED. LANDS FROM WHICH A MERCHANTABLE
FOREST  CROP, AS DEFINED IN SECTION FOUR HUNDRED EIGHTY-A OF THIS TITLE,
HAS BEEN CUT OR REMOVED WITHIN THREE YEARS PRIOR TO THE TIME OF APPLICA-
TION FOR CERTIFICATION UNDER THIS SECTION WILL BE INELIGIBLE UNLESS SUCH
CUTTING OR REMOVAL WAS ACCOMPLISHED UNDER A FOREST  MANAGEMENT  PRACTICE
PLAN  DESIGNED  TO PROVIDE FOR SUSTAINABLE FORESTRY AS DETERMINED BY THE
STATE FORESTER OR HIS OR HER DESIGNEE.  AGRICULTURAL LAND IS NOT  ELIGI-
BLE FOR ENROLLMENT UNDER THIS PROGRAM.
  (F)  "FOREST LAND" SHALL MEAN LAND SUITABLE FOR FOREST CROP PRODUCTION
THROUGH NATURAL REGENERATION OR THROUGH FORESTATION AND SHALL BE STOCKED
WITH A STAND OF FOREST TREES SUFFICIENT TO PRODUCE A MERCHANTABLE FOREST
CROP IN THE FUTURE.
  (G) "FOREST CERTIFICATION PROGRAM" SHALL MEAN A  FOREST  CERTIFICATION
PROGRAM, SELECTED BY THE OWNER, AND WHICH IS ADMINISTERED BY A QUALIFIED
THIRD  PARTY TO ENSURE SUSTAINABLE FOREST MANAGEMENT IS PRACTICED ON THE
LAND, AS SPECIFIED IN REGULATIONS PROMULGATED BY THE DEPARTMENT.
  (H) "QUALIFYING FOREST MANAGEMENT PRACTICE" SHALL MEAN ANY CUTTING  OF
TREES  RELATED  TO COMMERCIAL HARVESTING INCLUDING REGENERATION HARVEST-
ING; TIMBER STAND IMPROVEMENT INCLUDING WEEDING, THINNING, OR CROP  TREE
RELEASE;  SITE PREPARATION FOR PLANTING; INVASIVE AND/OR COMPETING VEGE-
TATION CONTROL; RIPARIAN BUFFER ESTABLISHMENT OR ENHANCEMENT;  OR  OTHER
ACTIVITIES AS SPECIFIED IN REGULATIONS PROMULGATED BY THE DEPARTMENT.
  (I)  "FOREST  MANAGEMENT  PRACTICE PLAN" SHALL MEAN A PLAN APPROVED BY
THE DEPARTMENT FOR ONE OR MORE QUALIFYING FOREST MANAGEMENT PRACTICE  TO
BE CONDUCTED ON A COMBINED TOTAL OF AT LEAST TEN ACRES OF FOREST LAND OF
AN  ELIGIBLE  TRACT  WHICH SHALL SET FORTH REQUIREMENTS AND STANDARDS AS
DEFINED IN REGULATIONS TO ENSURE AND ENHANCE THE FUTURE PRODUCTIVITY AND
SUSTAINABILITY OF THE FOREST TREATED, AND ENSURE SUCCESSFUL REGENERATION
OF DESIRABLE SPECIES, WHEN PLANNED. SUCH PLAN MUST  BE  PREPARED  BY  OR
UNDER THE DIRECT SUPERVISION OF A DEPARTMENT APPROVED FORESTER AS SPECI-
FIED IN REGULATIONS PROMULGATED BY THE DEPARTMENT.
  (J)  "VERIFICATION  OF  CONTINUED ELIGIBILITY" SHALL MEAN A PORTION OF
THE COMMITMENT FORM PREPARED AND SIGNED BY THE LANDOWNER WHICH CERTIFIES
THAT SUCH LANDOWNER CONTINUES TO SATISFY ALL CONDITIONS AND REQUIREMENTS
OF HIS OR HER INITIAL ENROLLMENT UNDER THIS SECTION.
  2. (A) AN OWNER OF AN ELIGIBLE TRACT MAY APPLY TO THE DEPARTMENT FOR A
CERTIFICATE OF ELIGIBILITY UNDER A FOREST MANAGEMENT  PRACTICE  PLAN  OR
FOREST   CERTIFICATION   PROGRAM  PURSUANT  TO  THIS  SECTION  ON  FORMS
PRESCRIBED BY THE DEPARTMENT.  IF THE DEPARTMENT FINDS THAT  SUCH  TRACT
IS  AN  ELIGIBLE TRACT, IT SHALL FORWARD A CERTIFICATE OF ELIGIBILITY TO
THE OWNER THEREOF.
  (B) THE DEPARTMENT SHALL, AFTER PUBLIC HEARINGS, ADOPT AND  PROMULGATE
RULES  AND REGULATIONS NECESSARY FOR THE IMPLEMENTATION OF THIS SECTION,
INCLUDING SPECIFYING FOREST MANAGEMENT PRACTICES WHICH WOULD  QUALIFY  A
TRACT FOR CERTIFICATION.
  (C)  ANY TRACT CERTIFIED PURSUANT TO THIS SUBDIVISION SHALL BE SUBJECT
TO THE PROVISIONS OF THIS SECTION. THE OBLIGATIONS OF THIS SECTION SHALL
DEVOLVE UPON AND THE BENEFITS INURE TO THE  OWNER,  HIS  OR  HER  HEIRS,
SUCCESSORS AND ASSIGNS.
  3.  (A)  TO QUALIFY FOR A FOREST LAND EXEMPTION UNDER THIS SECTION THE
OWNER OF A CERTIFIED ELIGIBLE TRACT SHALL:

S. 7508                            136                           A. 9508

  (I) FILE THE CERTIFICATE OF ELIGIBILITY IN THE OFFICE OF THE CLERK  OF
THE COUNTY OR COUNTIES IN WHICH SUCH TRACT IS SITUATED. SUCH CERTIFICATE
SHALL  SPECIFY  THAT  THE TRACT DESCRIBED THEREIN IS COMMITTED TO EITHER
(A) SUSTAINABLE FOREST MANAGEMENT UNDER A FOREST  CERTIFICATION  PROGRAM
OR  (B)  SUSTAINABLE  FORESTRY  AND  OPEN  SPACE  PRESERVATION  UNDER AN
APPROVED FOREST MANAGEMENT PRACTICE PLAN, WHICHEVER IS  APPLICABLE,  FOR
AN  INITIAL  PERIOD  OF TEN YEARS. UPON RECEIPT OF SUCH CERTIFICATE, THE
COUNTY CLERK SHALL RECORD THE SAME IN THE BOOKS KEPT FOR  THE  RECORDING
OF  DEEDS AND SHALL INDEX THE SAME IN THE DEED INDEX AGAINST THE NAME OF
THE OWNER OF THE PROPERTY; AND (II) PRIOR TO THE TAXABLE STATUS DATE FOR
THE FIRST ASSESSMENT ROLL UPON WHICH SUCH EXEMPTION IS SOUGHT,  FILE  AN
INITIAL APPLICATION FOR EXEMPTION WITH THE APPROPRIATE ASSESSOR ON FORMS
PRESCRIBED BY THE COMMISSIONER.  SUCH APPLICATION MUST BE ACCOMPANIED BY
A CERTIFICATE OF ELIGIBILITY ISSUED BY THE DEPARTMENT AND THE COMMITMENT
FORM; (III) PRIOR TO THE TAXABLE STATUS DATE FOR EACH SUBSEQUENT ASSESS-
MENT ROLL UPON WHICH SUCH EXEMPTION IS SOUGHT, FILE WITH THE APPROPRIATE
ASSESSOR  THE  COMMITMENT  FORM FOR SUCH TRACT TO EITHER (A) SUSTAINABLE
FOREST MANAGEMENT UNDER A FOREST CERTIFICATION PROGRAM OR (B)  SUSTAINA-
BLE  FORESTRY AND OPEN SPACE PROTECTION UNDER AN APPROVED FOREST MANAGE-
MENT PRACTICE PLAN, WHICHEVER IS APPLICABLE, FOR THE NEXT SUCCEEDING TEN
YEARS; AND (IV) CONDUCT AN APPROVED INITIAL QUALIFYING FOREST MANAGEMENT
PRACTICE ON A COMBINED TOTAL OF AT LEAST TEN ACRES OF FOREST LAND OF  AN
ELIGIBLE TRACT.
  (B)  IF  THE  REQUIREMENTS OF THIS SECTION ARE MET, THE ASSESSOR SHALL
APPROVE THE APPLICATION AND SUCH ELIGIBLE TRACT  SHALL  BE  EXEMPT  FROM
TAXATION PURSUANT TO SUBDIVISION FOUR OF THIS SECTION TO BE EFFECTIVE AS
OF  THE FIRST TAXABLE STATUS DATE OCCURRING SUBSEQUENT TO SUCH APPROVAL,
AND SHALL CONTINUE TO BE SO EXEMPT THEREAFTER UPON RECEIPT BY THE ASSES-
SOR OF A COMMITMENT FORM FILED IN ACCORDANCE WITH SUBPARAGRAPH (III)  OF
PARAGRAPH  (A)  OF  THIS SUBDIVISION AND SO LONG AS THE CERTIFICATION OF
THE ELIGIBLE TRACT HAS NOT BEEN REVOKED BY THE DEPARTMENT.
  (C) FAILURE ON THE PART OF THE OWNER TO FILE THE  COMMITMENT  FORM  IN
ANY  YEAR FOLLOWING INITIAL CERTIFICATION WILL RESULT IN THE TERMINATION
OF THE FOREST LAND EXEMPTION UNDER THIS SECTION APPLICABLE TO THE  PROP-
ERTY  FOR  THAT  AND  EACH  SUCCEEDING  TAXABLE YEARS. FAILURE TO FILE A
COMMITMENT FORM WILL NOT CONSTITUTE A CONVERSION OF THE TRACT OR  BREACH
OF  THE  COMMITMENT,  PURSUANT TO SUBDIVISION SEVEN OF THIS SECTION, AND
THE COMMITMENT OF THE PROPERTY TO EITHER (I) SUSTAINABLE FOREST  MANAGE-
MENT  UNDER  A FOREST CERTIFICATION PROGRAM OR (II) SUSTAINABLE FORESTRY
OR OPEN SPACE PRESERVATION THROUGH THE APPROVED FOREST MANAGEMENT  PRAC-
TICE PLAN OPTION, WHICHEVER IS APPLICABLE, SHALL REMAIN IN FORCE FOR THE
NEXT  SUCCEEDING  NINE YEARS FOLLOWING THE LAST TAXABLE YEAR FOR WHICH A
COMMITMENT FORM WAS FILED.
  (D) FOLLOWING FAILURE TO FILE A COMMITMENT FORM IN ONE OR MORE  YEARS,
IN  ORDER TO OBTAIN A FOREST LAND EXEMPTION UNDER THIS SECTION, AN OWNER
OF A CERTIFIED TRACT MAY SUBMIT A COMMITMENT FORM TO THE ASSESSOR BEFORE
THE TAXABLE STATUS DATE IN ANY SUBSEQUENT YEAR, EXCEPT THAT A NEW APPLI-
CATION UNDER PARAGRAPH (A)  OF  SUBDIVISION  TWO  OF  THIS  SECTION  AND
SUBPARAGRAPH  (I)  OF  PARAGRAPH  (A)  OF THIS SUBDIVISION ALSO SHALL BE
REQUIRED IF MORE THAN FIVE YEARS HAVE ELAPSED  SINCE  THE  OWNER'S  LAST
COMMITMENT  FORM  AND  VERIFICATION  OF CONTINUED ELIGIBILITY WAS FILED.
SUCH NEW APPLICATION ALSO SHALL BE REQUIRED WHENEVER, DURING THE PRECED-
ING YEAR, THE APPROVED FOREST MANAGEMENT PRACTICE PLAN HAS BEEN  AMENDED
WITH  RESPECT  TO THE ACREAGE OF LAND COMMITTED TO SUSTAINABLE FORESTRY,
UNDER A FOREST CERTIFICATION PROGRAM OR SUSTAINABLE  FORESTRY  AND  OPEN
SPACE PRESERVATION UNDER THIS SECTION.

S. 7508                            137                           A. 9508

  4.  (A)  CERTIFIED  ELIGIBLE  TRACTS APPROVED FOR EXEMPTION UNDER THIS
SECTION SHALL BE EXEMPT FROM TAXATION TO THE EXTENT OF (I)  SEVENTY  PER
CENTUM  OF  THE  ASSESSED  VALUATION  THEREOF IN THE CASE OF AN ELIGIBLE
TRACT  ENROLLED  UNDER  A  DEPARTMENT  RECOGNIZED  FOREST  CERTIFICATION
PROGRAM,  OR  (II) FORTY PER CENTUM OF THE ASSESSED VALUATION THEREOF IN
THE CASE OF AN ELIGIBLE TRACT ENROLLED THROUGH A FOREST MANAGEMENT PRAC-
TICE PLAN.
  (B) THE ASSESSED VALUE OF  THE  EXEMPTION  GRANTED  PURSUANT  TO  THIS
SECTION  SHALL BE ENTERED BY THE ASSESSOR ON THE ASSESSMENT ROLL IN SUCH
MANNER AS SHALL BE PRESCRIBED BY THE COMMISSIONER.
  5. (A) FOR LANDS ELIGIBLE PURSUANT TO  A  FOREST  MANAGEMENT  PRACTICE
PLAN,  WHENEVER ANY FOREST MANAGEMENT PRACTICE ON ANY CERTIFIED ELIGIBLE
TRACT IS PROPOSED DURING THE PERIOD OF COMMITMENT PURSUANT  TO  SUBDIVI-
SION  THREE  OF THIS SECTION, THE OWNER SHALL SUBMIT A FOREST MANAGEMENT
PRACTICE PLAN TO THE DEPARTMENT FOR APPROVAL NO LESS  THAN  THIRTY  DAYS
PRIOR  TO  THE ANTICIPATED COMMENCEMENT OF SUCH PLAN AND IN A MANNER AND
UPON SUCH FORM AS MAY BE PRESCRIBED BY THE DEPARTMENT.
  (B) NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS  SUBDIVISION  AND
THE PROVISIONS OF SUBDIVISION SIX OF THIS SECTION, THE OWNER OF ANY LAND
CERTIFIED  UNDER THIS SECTION MAY ANNUALLY CUT, IN ACCORDANCE WITH SOUND
FORESTRY PRACTICES, NOT MORE THAN TEN STANDARD CORDS OR  THE  EQUIVALENT
FOR SUCH OWNER'S OWN USE, WITHOUT NOTICE.
  6.  ANY  QUALIFYING  FOREST MANAGEMENT PRACTICE UNDER THIS SUBDIVISION
MUST BE CONDUCTED WITHIN TWO YEARS FROM THE DATE OF DEPARTMENT  APPROVAL
OF THE FOREST MANAGEMENT PRACTICE PLAN.
  7.  (A) THE DEPARTMENT SHALL, AFTER NOTICE AND HEARING, ISSUE A NOTICE
OF VIOLATION OF THIS SECTION FOR ANY CERTIFIED TRACT WHENEVER  IT  FINDS
THAT:
  (I) ANY TRACT OR PORTION THEREOF IS CONVERTED TO A USE WHICH PRECLUDES
MANAGEMENT OF THE LAND FOR SUSTAINABLE FORESTRY OR OPEN SPACE; OR
  (II)  THE  OWNER  FAILS TO SUBMIT A FOREST MANAGEMENT PRACTICE PLAN TO
THE DEPARTMENT FOR APPROVAL PRIOR TO COMMENCING SUCH PRACTICE; OR
  (III) THE OWNER FAILS TO MAINTAIN THEIR PARTICIPATION IN A  DEPARTMENT
RECOGNIZED FOREST CERTIFICATION PROGRAM DURING THE COMMITMENT PERIOD; OR
  (IV)  THE  OWNER  FAILS  TO  CARRY OUT A FOREST MANAGEMENT PRACTICE IN
ACCORDANCE WITH THE SPECIFICATIONS OF THE QUALIFYING  FOREST  MANAGEMENT
PRACTICE PLAN.
  (B) NOTWITHSTANDING THE FINDING OF AN OCCURRENCE DESCRIBED BY SUBPARA-
GRAPH  (II),  (III)  OR  (IV)  OF PARAGRAPH (A) OF THIS SUBDIVISION, THE
DEPARTMENT, UPON PRIOR NOTICE TO THE APPROPRIATE ASSESSOR, MAY DETERMINE
THAT A VIOLATION HAS NOT OCCURRED IF THE FAILURE TO COMPLY  WAS  DUE  TO
REASONS  BEYOND  THE  CONTROL  OF  THE  OWNER  AND  SUCH  FAILURE CAN BE
CORRECTED FORTHWITH WITHOUT SIGNIFICANT EFFECT ON THE OVERALL PURPOSE OF
THE COMMITMENT.
  (C) THE OWNER OF SUCH TRACT, FOLLOWING THE ISSUANCE OF SUCH NOTICE  BY
THE DEPARTMENT FOR ONE OR MORE OF THE REASONS SET FORTH IN PARAGRAPH (A)
OF  THIS SUBDIVISION, SHALL BE SUBJECT TO A PENALTY AS PROVIDED IN PARA-
GRAPH (D) OR (E)  OF  THIS  SUBDIVISION,  WHICHEVER  APPLIES.  PENALTIES
IMPOSED BY THIS SECTION SHALL BE SUBJECT TO INTEREST CHARGES AT THE RATE
ESTABLISHED PURSUANT TO SECTION NINE HUNDRED TWENTY-FOUR-A OF THIS CHAP-
TER  FOR  EACH APPLICABLE YEAR.   SUCH INTEREST SHALL ACCRUE IN THE YEAR
WITH REFERENCE TO WHICH A PENALTY, OR PORTION THEREOF, IS ATTRIBUTED.
  (D) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH (E) OF THIS SUBDIVISION:
  (I) THE PENALTY IMPOSED UNDER PARAGRAPH (C) OF THIS SUBDIVISION FOR  A
PARCEL THAT HAS BEEN ENROLLED UNDER THIS SECTION FOR LESS THAN TEN YEARS
SHALL BE COMPUTED BY MULTIPLYING BY TWO AND ONE-HALF THE AMOUNT OF TAXES

S. 7508                            138                           A. 9508

THAT  WOULD HAVE BEEN LEVIED ON THE FOREST LAND EXEMPTION ENTERED ON THE
ASSESSMENT ROLL PURSUANT TO SUBDIVISION FOUR OF  THIS  SECTION  FOR  THE
CURRENT YEAR AND ANY PRIOR YEARS IN WHICH SUCH AN EXEMPTION WAS GRANTED,
UTILIZING  THE  APPLICABLE  TAX  RATE  FOR THE CURRENT YEAR AND FOR SUCH
PRIOR YEARS.
  (II) THE PENALTY IMPOSED UNDER PARAGRAPH (C) OF THIS SUBDIVISION FOR A
PARCEL THAT HAS BEEN ENROLLED UNDER THIS SECTION FOR A  MINIMUM  OF  TEN
YEARS BUT LESS THAN TWENTY YEARS SHALL BE COMPUTED BY MULTIPLYING BY ONE
AND  ONE-HALF  THE  AMOUNT  OF  TAXES THAT WOULD HAVE BEEN LEVIED ON THE
FOREST LAND EXEMPTION ENTERED ON THE ASSESSMENT ROLL PURSUANT TO  SUBDI-
VISION  FOUR  OF  THIS  SECTION  FOR THE CURRENT YEAR AND PRIOR YEARS IN
WHICH SUCH AN EXEMPTION WAS GRANTED, UTILIZING THE APPLICABLE  TAX  RATE
FOR  THE CURRENT YEAR AND FOR SUCH PRIOR YEARS, NOT TO EXCEED A TOTAL OF
TEN YEARS.
  (III) THE PENALTY IMPOSED UNDER PARAGRAPH (C) OF THIS SUBDIVISION  FOR
A  PARCEL  THAT  HAS  BEEN  ENROLLED UNDER THIS SECTION FOR A MINIMUM OF
TWENTY YEARS SHALL BE THE AMOUNT OF TAXES THAT WOULD HAVE BEEN LEVIED ON
THE FOREST LAND EXEMPTION ENTERED ON THE  ASSESSMENT  ROLL  PURSUANT  TO
SUBDIVISION FOUR OF THIS SECTION FOR THE CURRENT YEAR AND PRIOR YEARS IN
WHICH  SUCH  AN EXEMPTION WAS GRANTED, UTILIZING THE APPLICABLE TAX RATE
FOR THE CURRENT YEAR AND FOR SUCH PRIOR YEARS, NOT TO EXCEED A TOTAL  OF
TEN YEARS.
  (E) THE PENALTY IMPOSED UNDER PARAGRAPH (C) OF THIS SUBDIVISION APPLI-
CABLE  TO CONVERTED LAND WHICH CONSTITUTES ONLY A PORTION OF A CERTIFIED
ELIGIBLE TRACT SHALL BE TWICE THE AMOUNT DETERMINED UNDER PARAGRAPH  (D)
OF  THIS SUBDIVISION.  IN CALCULATING SUCH PENALTY, ONLY THAT PORTION OF
THE TRACT THAT WAS ACTUALLY CONVERTED TO A USE THAT PRECLUDES EITHER (I)
SUSTAINABLE FOREST MANAGEMENT UNDER A FOREST  CERTIFICATION  PROGRAM  OR
(II)  MANAGEMENT  OF THE LAND FOR SUSTAINABLE FOREST MANAGEMENT AND OPEN
SPACE, SHALL BE USED AS THE BASIS FOR DETERMINING  THE  PENALTY,  UNLESS
THE  REMAINING  PORTION NO LONGER MEETS THE MINIMUM ACREAGE REQUIREMENTS
OF PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION, IN WHICH  CASE  THE
ENTIRE  TRACT  SHALL  BE DEEMED INELIGIBLE AND SUBJECT TO REVOCATION AND
PENALTIES.
  (F) A NOTICE OF VIOLATION ISSUED UNDER THIS SUBDIVISION SHALL BE GIVEN
BY THE DEPARTMENT TO THE OWNER AND TO THE COUNTY TREASURER OF THE COUNTY
OR COUNTIES IN WHICH SUCH TRACT IS LOCATED, AND THE PENALTY AND INTEREST
CHARGES SHALL BE COMPUTED FOR EACH  OF  THE  MUNICIPAL  CORPORATIONS  IN
WHICH SUCH TRACT IS LOCATED BY SUCH COUNTY TREASURER. UPON COMPLETION OF
THE  COMPUTATION OF THE PENALTY AND INTEREST, THE COUNTY TREASURER SHALL
GIVE NOTICE TO THE OWNER OF THE AMOUNT OF THE PENALTY AND INTEREST,  AND
THE AMOUNT SHALL BE ENTERED ON THE NEXT COMPLETED TAX ROLL OF SUCH COUN-
TY  OR  COUNTIES.  SUCH  PENALTIES  AND  INTEREST  SHALL  BE  LEVIED AND
COLLECTED IN THE SAME MANNER AND AT THE SAME TIME  AS  OTHER  TAXES  ARE
IMPOSED  AND  LEVIED ON SUCH ROLL. UPON COLLECTION OF SUCH PENALTIES AND
INTEREST, SUCH COUNTY TREASURER SHALL PAY THE AMOUNTS DUE TO EACH OF THE
APPROPRIATE MUNICIPAL CORPORATIONS.
  (G) UPON A FINDING OF A VIOLATION, THE  DEPARTMENT  SHALL  REVOKE  THE
CERTIFICATE  OF  ELIGIBILITY  ISSUED PURSUANT TO SUBDIVISION TWO OF THIS
SECTION, AND NOTICE OF SUCH REVOCATION SHALL BE GIVEN TO THE  OWNER  AND
TO  THE  COUNTY  CLERK  OF  THE COUNTY OR COUNTIES IN WHICH THE TRACT IS
LOCATED.  UPON RECEIPT OF SUCH NOTICE OF REVOCATION,  THE  COUNTY  CLERK
SHALL  RECORD  THE SAME IN THE BOOKS KEPT FOR THE RECORDING OF DEEDS AND
SHALL INDEX THE SAME IN THE DEED INDEX AGAINST THE NAME OF THE OWNER  OF
THE  PROPERTY.  THE COUNTY CLERK SHALL ALSO NOTE ON THE FACE OF THE LAST
CERTIFICATE OF  ELIGIBILITY  AND  COMMITMENT  FORM  PREVIOUSLY  RECORDED

S. 7508                            139                           A. 9508

PURSUANT  TO  THIS SECTION THE WORD "REVOKED" FOLLOWED BY A REFERENCE TO
THE LIBER AND PAGE WHERE THE NOTICE OF REVOCATION IS  RECORDED  PURSUANT
TO THIS SUBDIVISION.
  (H)  THE  CERTIFICATE OF ELIGIBILITY OF A TRACT FOR WHICH NO NOTICE OF
VIOLATION HAS BEEN ISSUED SHALL BE REVOKED WITHOUT PENALTY UPON  RECEIPT
OF PROOF SATISFACTORY TO THE DEPARTMENT THAT NINE YEARS HAVE PASSED FROM
THE  YEAR  OF  THE  LAST  COMMITMENT FORM FILED WITH THE ASSESSOR BY THE
OWNER PURSUANT TO SUBDIVISION THREE OF  THIS  SECTION.  NOTICE  OF  SUCH
REVOCATION SHALL BE RECORDED AND INDEXED AS PROVIDED IN PARAGRAPH (G) OF
THIS SUBDIVISION.
  (I)  NO  FEE,  PENALTY  OR ROLLBACK OF TAXES OTHERWISE DUE PURSUANT TO
THIS SECTION MAY BE IMPOSED UPON THE CITY OF NEW  YORK  FOR  FAILURE  TO
COMPLY  WITH AN APPROVED FOREST MANAGEMENT PRACTICE PLAN FOR AN ELIGIBLE
TRACT THAT THE CITY ACQUIRES FOR WATERSHED PURPOSES.
  8. (A) THE OWNER OF A CERTIFIED ELIGIBLE TRACT SHALL NOT BE SUBJECT TO
ANY PENALTY UNDER THIS SECTION THAT WOULD OTHERWISE APPLY  BECAUSE  SUCH
TRACT  OR  ANY  PORTION  THEREOF  IS  CONVERTED  TO A USE OTHER THAN (I)
SUSTAINABLE FOREST MANAGEMENT UNDER A FOREST  CERTIFICATION  PROGRAM  OR
(II)  SUSTAINABLE FORESTRY AND OPEN SPACE PRESERVATION UNDER AN APPROVED
FOREST MANAGEMENT PRACTICE, WHICHEVER IS APPLICABLE, BY VIRTUE  OF:  (A)
AN INVOLUNTARY TAKING BY EMINENT DOMAIN OR OTHER INVOLUNTARY PROCEEDING,
EXCEPT A TAX SALE, OR (B) A VOLUNTARY PROCEEDING, PROVIDED SUCH PROCEED-
ING  INVOLVES  THE  ESTABLISHMENT OF RIGHTS-OF-WAY FOR PUBLIC HIGHWAY OR
ENERGY TRANSMISSION PURPOSES WHEREIN SUCH  CORRIDORS  HAVE  BEEN  ESTAB-
LISHED SUBSEQUENT TO PUBLIC HEARING AS NEEDED IN THE PUBLIC INTEREST AND
ENVIRONMENTALLY  COMPATIBLE,  OR  (C)  OIL,  GAS OR MINERAL EXPLORATION,
DEVELOPMENT OR EXTRACTION ACTIVITY UNDERTAKEN BY AN INDEPENDENT  GRANTEE
PURSUANT  TO  A  LEASE OR OTHER CONVEYANCE OF SUBSURFACE RIGHTS RECORDED
MORE THAN TEN YEARS PRIOR TO THE DATE OF THE CERTIFICATE OF  ELIGIBILITY
ISSUED  BY  THE DEPARTMENT UNDER SUBDIVISION TWO OF THIS SECTION, OR (D)
WHERE ALL OR A SUBSTANTIAL PORTION OF THE CERTIFIED TRACT  IS  DESTROYED
OR IRREPARABLY DAMAGED BY REASON OF AN ACT OF GOD OR A NATURAL DISASTER.
  (B)  IN  THE  EVENT  THE  LAND  SO  CONVERTED  TO A USE OTHER THAN (I)
SUSTAINABLE FOREST MANAGEMENT UNDER A FOREST  CERTIFICATION  PROGRAM  OR
(II)  SUSTAINABLE FORESTRY AND OPEN SPACE PRESERVATION UNDER AN APPROVED
FOREST MANAGEMENT PRACTICE PLAN, WHICHEVER  IS  APPLICABLE,  CONSTITUTES
ONLY  A  PORTION OF SUCH TRACT, THE ASSESSOR SHALL APPORTION THE ASSESS-
MENT, AND ENTER THAT PORTION  SO  CONVERTED  AS  A  SEPARATELY  ASSESSED
PARCEL  ON  THE APPROPRIATE PORTION OF THE ASSESSMENT ROLL. THE ASSESSOR
SHALL THEN ADJUST THE FOREST LAND EXEMPTION ATTRIBUTABLE TO THE  PORTION
OF  THE  TRACT NOT SO CONVERTED BY SUBTRACTING THE PROPORTIONATE PART OF
THE EXEMPTION OF THE CONVERTED PARCEL.
  (C) IF THE PORTION SO CONVERTED DIVIDES THE TRACT  INTO  TWO  OR  MORE
SEPARATE  PARCELS,  SUCH  REMAINING PARCELS NOT SO CONVERTED WILL REMAIN
ELIGIBLE UNDER THIS SECTION, REGARDLESS OF SIZE.
  (D) THE OWNER OF A CERTIFIED TRACT SHALL NOT  BE  SUBJECT  TO  PENALTY
UNDER THIS SECTION THAT WOULD OTHERWISE APPLY BECAUSE THE FOREST OR OPEN
SPACE  ON  THE  CERTIFIED  TRACT  OR PORTION IS, THROUGH NO FAULT OF THE
OWNER, DAMAGED OR DESTROYED BY FIRE, INFESTATION, DISEASE, STORM, FLOOD,
OR OTHER NATURAL DISASTER, ACT OF GOD, ACCIDENT, TRESPASS OR WAR.  IF  A
FOREST  MANAGEMENT  PRACTICE  IS  TO  OCCUR IN CONNECTION WITH NECESSARY
SALVAGE OPERATIONS RESULTING FROM ANY SUCH EVENT, THE OWNER SHALL SUBMIT
A FOREST MANAGEMENT PRACTICE PLAN TO THE DEPARTMENT FOR  APPROVAL  PRIOR
TO THE COMMENCEMENT OF SUCH PRACTICE. NOTHING IN THIS PARAGRAPH SHALL BE
CONSTRUED  TO  SUBJECT  ANY PERSON TO PENALTY UNDER SUBDIVISION SEVEN OF

S. 7508                            140                           A. 9508

THIS SECTION FOR IMMEDIATE ACTION TAKEN IN GOOD FAITH IN THE EVENT OF AN
EMERGENCY.
  9.  ALL  PENALTIES  AND INTEREST CHARGES THEREON COLLECTED PURSUANT TO
SUBDIVISIONS FIVE, SIX AND SEVEN OF THIS SECTION SHALL BE APPORTIONED TO
THE APPLICABLE MUNICIPAL CORPORATIONS IN WHICH SUCH TRACT IS SITUATED.
  10. (A) FOREST CERTIFICATION PROGRAMS RECOGNIZED AND FOREST MANAGEMENT
PRACTICE PLANS APPROVED PURSUANT TO THIS SECTION SHALL NOT BE DEEMED  TO
AUTHORIZE  OR  PERMIT ANY PRACTICE OR ACTIVITY PROHIBITED, RESTRICTED OR
REQUIRING FURTHER APPROVAL UNDER THE ENVIRONMENTAL CONSERVATION LAW,  OR
ANY  OTHER  GENERAL  OR  SPECIAL LAW OF THE STATE, OR ANY LAWFUL RULE OR
REGULATION DULY PROMULGATED THEREUNDER.
  (B) NO OTHERWISE ELIGIBLE TRACT, OR PORTION THEREOF, SHALL  BE  DEEMED
TO  BE INELIGIBLE FOR CERTIFICATION OR QUALIFICATION UNDER THIS SECTION,
AND NO CERTIFICATE OF ELIGIBILITY SHALL BE REVOKED OR  PENALTY  IMPOSED,
SOLELY  ON  THE  GROUND  THAT ANY SUCH LAW, RULE OR REGULATION PARTIALLY
RESTRICTS OR REQUIRES FURTHER APPROVAL FOR FOREST  MANAGEMENT  PRACTICES
OR ACTIVITIES ON SUCH TRACT OR PORTION.
  §  5.   Section 9-0815 of the environmental conservation law, as added
by chapter 602 of the laws of 2003, the section heading and  subdivision
3  as  amended by chapter 623 of the laws of 2003, is amended to read as
follows:
§ 9-0815. [Request for comment on local laws or ordinances pertaining to
            the practice of forestry] FORESTRY PRACTICE REQUIREMENTS.
  [The commissioner upon his or her own initiative, or upon the  written
request  of a municipality or an owner of forest land within the munici-
pality, may elect to comment upon a  proposed  local  law  or  ordinance
which may restrict the practice of forestry. The requesting municipality
or  owner  of  forest land shall provide, at a minimum, the full text of
the proposed local law  or  ordinance  to  the  commissioner  with  such
request.]
  1.  [Upon  receipt  of such written request or upon the commissioner's
determination to comment on a local law or ordinance,  the  commissioner
shall  notify the municipal legislative body, in writing, of the receipt
date or the date of such determination] A. ANY MUNICIPALITY PROPOSING AN
ORDINANCE, REGULATION OR PERMIT REQUIREMENT WHICH MAY RESTRICT THE PRAC-
TICE OF FORESTRY, INCLUDING BUT NOT LIMITED TO, TIMBER HARVESTING, OTHER
FOREST MANAGEMENT PRACTICES, AND TEMPORARY STORAGE OR TRANSPORT OF  LOGS
OR  OTHER  WOOD PRODUCTS FROM HARVEST SITES, SHALL SUBMIT SUCH PROPOSALS
TO THE DEPARTMENT FOR REVIEW, COMMENT AND INPUT, TO ENSURE THEY  DO  NOT
ADVERSELY IMPACT THE LANDOWNER'S RIGHT TO PRACTICE FORESTRY.
  [2.  An  owner  of  forest  land shall provide notice to the municipal
legislative body proposing the local  law  or  ordinance  of  a  written
request  to  the  commissioner  in  the time, manner, and form as may be
prescribed by the commissioner] B.   THE  REQUIRING  MUNICIPALITY  SHALL
PROVIDE,  AT A MINIMUM, THE FULL TEXT OF THE PROPOSED LOCAL LAW OR ORDI-
NANCE TO THE COMMISSIONER.
  [3.] C. The commissioner, in preparing his or her comments for consid-
eration by the municipality, may consider  factors  including,  but  not
limited  to,  the impact of the proposed local law or ordinance upon the
long-term viability of forests in the municipality and any modifications
or alternatives which a  municipality  may  undertake  to  minimize  the
impacts to the practice of forestry in preparing his or her comments.
  [4.]  D.  The commissioner shall have forty-five days after receipt of
an ordinance to provide his or her comments, if any,  to  the  municipal
legislative  body proposing the law or ordinance. Any municipal legisla-
tive body shall defer the adoption of such local law or ordinance  pend-

S. 7508                            141                           A. 9508

ing receipt of comments, if any, from the commissioner or the passage of
forty-five  days  from  the date of receipt of the proposed local law or
ordinance by the commissioner. The commissioner shall have the  opportu-
nity  to  [respond]  REVIEW  AND  PROVIDE  COMMENTS only to the original
proposal considered by the local governing body.
  [5.] E. For purposes of this section, "forest land"  shall  mean  land
that is suitable to forest crop production.
  F.  IF  THE  DEPARTMENT  RECOMMENDS  MODIFICATION  OR DISAPPROVAL OF A
PROPOSED ACTION, THE REFERRING BODY  SHALL  NOT  ACT  CONTRARY  TO  SUCH
RECOMMENDATION  EXCEPT  BY  A  VOTE  OF  A  MAJORITY PLUS ONE OF ALL THE
MEMBERS THEREOF.
  2. THE DEPARTMENT SHALL PROMULGATE RULES AND REGULATIONS REQUIRING ALL
LANDOWNERS, OR THEIR AUTHORIZED AGENTS, TO PROVIDE NOTIFICATION  TO  THE
DEPARTMENT  PRIOR  TO  ENGAGING  IN  ANY  COMMERCIAL TIMBER HARVEST OF A
MERCHANTABLE FOREST CROP FROM  TEN  OR  MORE  ACRES  OF  PRIVATELY-OWNED
FOREST LAND IN ANY GIVEN YEAR.
  A.  SUCH  NOTIFICATION SHALL BE IN THE MANNER AND FORMAT PRESCRIBED BY
THE DEPARTMENT AND, AT MINIMUM, SHALL INCLUDE:
  (I) NAME AND ADDRESS OF THE LANDOWNER;
  (II) NAME AND  ADDRESS  OF  ANY  AUTHORIZED  AGENT  OF  THE  LANDOWNER
CONDUCTING FORESTRY RELATED ACTIVITIES, SUCH AS A FORESTER, LAND MANAGER
OR LOGGER;
  (III)  LOCATION  AND  ACREAGE  OF THE AREA TO BE HARVESTED AND PLANNED
POINT OR POINTS OF ACCESS TO PUBLIC ROAD OR ROADS;
  (IV) APPROXIMATE START AND END DATES OF THE HARVEST;
  (V) APPROXIMATE VOLUME TO BE HARVESTED;
  (VI) PRODUCTS AND SPECIES TO BE HARVESTED;
  (VII) WHETHER THE HARVEST IS BEING CONDUCTED  PURSUANT  TO  A  WRITTEN
FOREST  MANAGEMENT PLAN UNDER SECTION FOUR HUNDRED EIGHTY-A OR A PROGRAM
UNDER SECTION FOUR HUNDRED EIGHTY-B OF THE REAL PROPERTY TAX LAW AND, IF
APPLICABLE, THE NAME AND  ADDRESS  OF  THE  INDIVIDUAL  OR  ENTITY  THAT
PREPARED THE PLAN;
  (VIII) WHETHER THE HARVEST IS BEING CONDUCTED PURSUANT TO A HARVESTING
CONTRACT; AND
  (IX) OTHER INFORMATION AS DEEMED NECESSARY AND BENEFICIAL.
  B.  THE  DEPARTMENT  SHALL SHARE TIMBER HARVEST NOTIFICATIONS WITH ANY
MUNICIPALITY THAT REQUESTS SUCH NOTIFICATIONS, IN WRITING, FOR  HARVESTS
IN SUCH MUNICIPALITY.
  C.  ANY  PROVISION OF ANY LOCAL LAW OR ORDINANCE, OR ANY RULE OR REGU-
LATION PROMULGATED THERETO, GOVERNING TIMBER HARVEST NOTIFICATION  SHALL
UPON  THE  EFFECTIVE DATE OF A CHAPTER OF THE LAWS OF TWO THOUSAND EIGH-
TEEN THAT AMENDED THIS SECTION BE PREEMPTED.
  § 6. Article 9 of the environmental conservation  law  is  amended  by
adding two new titles 23 and 25 to read as follows:
                                TITLE 23
                     COMMUNITY FOREST GRANT PROGRAM
SECTION 9-2301. DEFINITIONS.
        9-2303. CRITERIA FOR COMMUNITY FOREST PROJECTS.
        9-2305. STATE ASSISTANCE APPLICATION PROCEDURE.
        9-2307. REGULATIONS.
        9-2309. CONTRACTS FOR STATE ASSISTANCE PAYMENTS.
        9-2311. POWERS AND DUTIES OF THE COMMISSIONER.
§ 9-2301. DEFINITIONS.
  FOR  THE  PURPOSE  OF  THIS  TITLE, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:

S. 7508                            142                           A. 9508

  1. "ELIGIBLE LAND" SHALL MEAN PRIVATE FOREST LAND IN THE STATE THAT IS
AT LEAST TWENTY-FIVE ACRES IN SIZE, SUITABLE TO  SUSTAIN  NATURAL  VEGE-
TATION, WHICH IS AT LEAST SEVENTY-FIVE PERCENT FORESTED.
  2.  "MUNICIPALITY" SHALL MEAN A COUNTY, CITY, TOWN, VILLAGE, OR INDIAN
NATION OR TRIBE RECOGNIZED BY THE UNITED STATES WITH A RESERVATION WHOL-
LY OR PARTLY WITHIN THE BOUNDARIES OF THE STATE, A LOCAL PUBLIC AUTHORI-
TY OR PUBLIC BENEFIT CORPORATION, OR ANY COMBINATION THEREOF.
  3. "NOT-FOR-PROFIT CONSERVATION ORGANIZATION" MEANS  A  NOT-FOR-PROFIT
CORPORATION ORGANIZED FOR THE CONSERVATION OR PRESERVATION OF REAL PROP-
ERTY AND WHICH HAS THE POWER TO ACQUIRE INTERESTS IN REAL PROPERTY. SUCH
ORGANIZATION  MUST  HAVE  QUALIFIED  AS  EXEMPT FOR FEDERAL TAX PURPOSES
PURSUANT TO SECTION 501 (C)(3) OF THE INTERNAL REVENUE CODE OR ANY SIMI-
LAR SUCCESSOR STATUTORY PROVISION.
§ 9-2303. CRITERIA FOR COMMUNITY FOREST PROJECTS.
  1. THE DEPARTMENT  SHALL  PROVIDE,  ON  A  COMPETITIVE  BASIS,  WITHIN
AMOUNTS APPROPRIATED STATE ASSISTANCE TO MUNICIPALITIES AND NOT-FOR-PRO-
FIT  CONSERVATION  ORGANIZATIONS  FOR  THE  PURCHASE  OF  LANDS  FOR THE
PURPOSES HEREIN PROVIDED, TO ESTABLISH FOREST  PLANTATIONS  OR  FOR  THE
CARE  AND  MANAGEMENT  OF  FORESTS.  THE  PROGRAM  SHALL REQUIRE A FIFTY
PERCENT NON-STATE MATCH.
  2. THE PURPOSE OF THE PROGRAM IS TO  ESTABLISH  COMMUNITY  FORESTS  TO
PROTECT  FOREST  LAND  FROM  CONVERSION  TO  NON-FOREST USES AND PROVIDE
COMMUNITY BENEFITS SUCH AS SUSTAINABLE FOREST MANAGEMENT,  ENVIRONMENTAL
BENEFITS INCLUDING CLEAN AIR, WATER, AND WILDLIFE HABITAT; BENEFITS FROM
FOREST-BASED  EDUCATIONAL  PROGRAMS;  BENEFITS FROM SERVING AS MODELS OF
EFFECTIVE FOREST STEWARDSHIP; AND  RECREATIONAL  BENEFITS  SECURED  WITH
PUBLIC ACCESS.
§ 9-2305. STATE ASSISTANCE APPLICATION PROCEDURE.
  1. A MUNICIPALITY UPON THE APPROVAL OF ITS GOVERNING BODY, OR NOT-FOR-
PROFIT  CONSERVATION  ORGANIZATION,  MAY  SUBMIT  AN  APPLICATION TO THE
COMMISSIONER, IN SUCH  FORM  AND  CONTAINING  SUCH  INFORMATION  AS  THE
COMMISSIONER  MAY REQUIRE, FOR STATE ASSISTANCE PAYMENTS TOWARD THE COST
OF A PROJECT WHICH IS ELIGIBLE FOR STATE  ASSISTANCE  PURSUANT  TO  THIS
TITLE.
  2.  THE  COMMISSIONER  SHALL  REVIEW  SUCH PROJECT APPLICATION AND MAY
APPROVE, DISAPPROVE OR RECOMMEND MODIFICATIONS THERETO  CONSISTENT  WITH
APPLICABLE LAW, CRITERIA, STANDARDS OR RULES AND REGULATIONS RELATIVE TO
SUCH PROJECTS.
§ 9-2307. REGULATIONS.
  THE  DEPARTMENT  MAY PROMULGATE ANY RULES AND REGULATIONS NECESSARY TO
IMPLEMENT AND ADMINISTER THIS TITLE INCLUDING BUT NOT LIMITED TO  APPLI-
CATION PROCEDURES, REVIEW PROCESSES, AND PROJECT APPROVAL GUIDELINES AND
CRITERIA.
§ 9-2309. CONTRACTS FOR STATE ASSISTANCE PAYMENTS.
  THE COMMISSIONER SHALL IMPOSE SUCH CONTRACTUAL REQUIREMENTS AND CONDI-
TIONS  UPON  ANY MUNICIPALITY AND ANY NOT-FOR-PROFIT CONSERVATION ORGAN-
IZATION WHICH RECEIVE FUNDS PURSUANT TO THIS TITLE AS MAY  BE  NECESSARY
AND  APPROPRIATE  TO  ASSURE THAT A PUBLIC BENEFIT SHALL ACCRUE FROM THE
USE OF PUBLIC FUNDS BY SUCH MUNICIPALITY AND NOT-FOR-PROFIT CONSERVATION
ORGANIZATION.
§ 9-2311. POWERS AND DUTIES OF THE COMMISSIONER.
  IN ADMINISTERING THE PROVISIONS OF THIS TITLE THE COMMISSIONER:
  1.  SHALL  MAKE  AN  ITEMIZED  ESTIMATE  OF  FUNDS  OR  APPROPRIATIONS
REQUESTED ANNUALLY FOR INCLUSION IN THE EXECUTIVE BUDGET;
  2.  MAY,  IN  THE  NAME  OF THE STATE, AS FURTHER PROVIDED WITHIN THIS
TITLE, CONTRACT TO MAKE, WITHIN THE LIMITATIONS OF APPROPRIATION  AVAIL-

S. 7508                            143                           A. 9508

ABLE THEREFOR, STATE ASSISTANCE PAYMENTS TOWARD THE COSTS OF AN APPROVED
PROJECT.  SUCH CONTRACTS SHALL BE SUBJECT TO APPROVAL BY THE STATE COMP-
TROLLER AND, AS TO FORM, BY THE ATTORNEY GENERAL;
  3.  SHALL  APPROVE  VOUCHERS  FOR THE PAYMENTS PURSUANT TO AN APPROVED
CONTRACT. ALL SUCH PAYMENTS SHALL BE PAID ON THE AUDIT  AND  WARRANT  OF
THE STATE COMPTROLLER; AND
  4. MAY PERFORM SUCH OTHER AND FURTHER ACTS AS MAY BE NECESSARY, PROPER
OR DESIRABLE TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
                                TITLE 25
                     EMPIRE FOREST INCENTIVE PROGRAM
SECTION 9-2501. DEFINITIONS.
        9-2503. CRITERIA FOR EMPIRE FOREST INCENTIVE PROJECTS.
        9-2505. STATE ASSISTANCE APPLICATION PROCEDURE.
        9-2507. REGULATIONS.
        9-2509. CONTRACTS FOR STATE ASSISTANCE PAYMENTS.
        9-2511. POWERS AND DUTIES OF THE COMMISSIONER.
§ 9-2501. DEFINITIONS.
  FOR  THE  PURPOSE  OF  THIS  TITLE, "ELIGIBLE LAND" SHALL MEAN PRIVATE
FOREST LAND IN THE STATE THAT IS AT LEAST  TWENTY-FIVE  ACRES  IN  SIZE,
SUITABLE TO SUSTAIN NATURAL VEGETATION.
§ 9-2503. CRITERIA FOR EMPIRE FOREST INCENTIVE PROJECTS.
  1.  THE DEPARTMENT SHALL PROVIDE THROUGH A COMPETITIVE PROCESS, WITHIN
AMOUNTS APPROPRIATED, STATE ASSISTANCE PAYMENTS PURSUANT TO  THE  EMPIRE
FOREST  INCENTIVE  PROGRAM  TO  LANDOWNERS FOR THE COSTS ASSOCIATED WITH
SOUND, SCIENTIFICALLY BASED  FOREST  MANAGEMENT  PRACTICES  ON  ELIGIBLE
LAND.  THE  PROGRAM  SHALL REQUIRE A NON-STATE MATCH. THE DEPARTMENT MAY
CONTRACT WITH AN INDEPENDENT THIRD PARTY ORGANIZATION TO ADMINISTER SUCH
STATE ASSISTANCE PROGRAM, PROVIDED THAT NOT MORE THAN TEN PERCENT OF ALL
FUNDS MAY BE MADE AVAILABLE TO CARRY OUT THE  PROGRAM  FOR  EACH  FISCAL
YEAR  FOR  PROGRAM  ADMINISTRATION  AND  TECHNICAL ASSISTANCE UNDER SUCH
CONTRACT.
  2. THE PROJECTS THAT QUALIFY FOR STATE ASSISTANCE PAYMENTS UNDER  THIS
TITLE SHALL INCLUDE BUT ARE NOT LIMITED TO:
  A. FOREST STEWARDSHIP PLANNING PROJECTS, INCLUDING UPGRADING AN EXIST-
ING  PLAN  TO  STATE  APPROVED  STANDARDS.  FOREST  STEWARDSHIP PLANNING
PROJECTS MUST BE COMPLETED AND APPROVED BY  THE  DEPARTMENT  BEFORE  THE
LANDOWNER IS ELIGIBLE FOR OTHER PROJECTS.
  B.  FOREST STAND IMPROVEMENT PROJECTS TO ENHANCE GROWTH AND QUALITY OF
WOOD FIBER FOR ACTIVITIES SUCH AS TREE MARKING, THINNING, CULL  REMOVAL,
OR GRAPEVINE REMOVAL.
  C.  INVASIVE  SPECIES CONTROL PROJECTS TO LIMIT THE SPREAD OF INVASIVE
SPECIES IN FORESTED ENVIRONMENTS THROUGH ERADICATION OR MANAGEMENT PRAC-
TICES THAT SUPPORT THE FOREST OWNER'S  MANAGEMENT  GOALS.  THIS  PROJECT
DOES   NOT  INCLUDE  ORCHARD,  ORNAMENTAL,  NURSERY  OR  CHRISTMAS  TREE
PURPOSES.
  D. AFFORESTATION OR REFORESTATION PROJECTS TO  ENCOURAGE  REGENERATION
OF FOREST COVER THROUGH SITE PREPARATION, PLANTING, SEEDING, FENCING, OR
TREE  SHELTERS  FOR THE PURPOSES OF TIMBER OR FIBER PRODUCTION OR CARBON
SEQUESTRATION. PLANTING SHALL BE LIMITED TO NON-INVASIVE NATIVE OR NATU-
RALIZED SPECIES AND CANNOT BE USED FOR ORCHARD, ORNAMENTAL,  NURSERY  OR
CHRISTMAS TREE PURPOSES.
  E.  WATER  QUALITY  IMPROVEMENT  PROJECTS  TO IMPROVE OR PROTECT WATER
QUALITY, RIPARIAN AREAS, FOREST WETLANDS AND FOREST  WATERSHEDS  THROUGH
THE   ESTABLISHMENT,  MAINTENANCE,  RENOVATION,  AND/OR  RESTORATION  OF
APPROVED PROJECTS.

S. 7508                            144                           A. 9508

  F. FISH AND WILDLIFE HABITAT IMPROVEMENT PROJECTS TO CREATE,  PROTECT,
OR  MAINTAIN  FISH  AND  WILDLIFE HABITAT THROUGH ESTABLISHMENT, MAINTE-
NANCE, AND RESTORATION PROJECTS.
  G. FOREST HEALTH PROJECTS TO IMPROVE, PROTECT OR RESTORE FOREST HEALTH
RELATIVE  TO  DETECTION  OF  OR DAMAGE BY INSECTS, DISEASES, AND ANIMALS
AFFECTING ESTABLISHED STANDS. THE PROJECT DOES NOT INCLUDE  COST-SHARING
FOR  APPLICATIONS OF CHEMICAL OR BIOLOGICAL AGENTS FOR CONTROL OF FOREST
PESTS.
  H. WILDFIRE AND CATASTROPHIC EVENT REHABILITATION PROJECTS TO  RESTORE
AND  REHABILITATE  FORESTS FOLLOWING CATASTROPHIC NATURAL EVENTS SUCH AS
WILDFIRE, WIND, AND ICE STORMS. SUCH ACTIVITIES MAY INCLUDE  STABILIZING
FIREBREAK SOILS OR BURNED AREAS, TREE DESIGNATION FOR STAND IMPROVEMENT,
AND THINNING.
§ 9-2505. STATE ASSISTANCE APPLICATION PROCEDURE.
  1.  A LANDOWNER MAY SUBMIT AN APPLICATION TO THE COMMISSIONER, IN SUCH
FORM AND CONTAINING SUCH INFORMATION AS THE  COMMISSIONER  MAY  REQUIRE,
FOR STATE ASSISTANCE PAYMENTS TOWARD THE COST OF A QUALIFYING PROJECT ON
ELIGIBLE LAND.
  2.  THE  COMMISSIONER  SHALL  REVIEW  SUCH PROJECT APPLICATION AND MAY
APPROVE, DISAPPROVE OR RECOMMEND MODIFICATIONS THERETO  CONSISTENT  WITH
APPLICABLE LAW, CRITERIA, STANDARDS OR RULES AND REGULATIONS RELATIVE TO
SUCH PROJECTS.
§ 9-2507. REGULATIONS.
  THE DEPARTMENT SHALL PROMULGATE ANY RULES AND REGULATIONS NECESSARY TO
IMPLEMENT  AND  ADMINISTER  THIS  TITLE INCLUDING BUT NOT LIMITED TO THE
AMOUNT OR PERCENTAGE FOR FUNDING MATCHES, APPLICATION PROCEDURES, REVIEW
PROCESSES, AND PROJECT APPROVAL GUIDELINES AND CRITERIA.
§ 9-2509. CONTRACTS FOR STATE ASSISTANCE PAYMENTS.
  THE COMMISSIONER SHALL IMPOSE SUCH CONTRACTUAL REQUIREMENTS AND CONDI-
TIONS UPON ANY LANDOWNER AND ANY INDEPENDENT  THIRD  PARTY  ORGANIZATION
WHICH  RECEIVE  FUNDS  PURSUANT  TO  THIS  TITLE AS MAY BE NECESSARY AND
APPROPRIATE TO ASSURE THAT A PUBLIC BENEFIT SHALL ACCRUE FROM THE USE OF
PUBLIC FUNDS BY SUCH LANDOWNER AND INDEPENDENT THIRD PARTY ORGANIZATION.
§ 9-2511. POWERS AND DUTIES OF THE COMMISSIONER.
  IN ADMINISTERING THE PROVISIONS OF THIS TITLE THE COMMISSIONER:
  1.  SHALL  MAKE  AN  ITEMIZED  ESTIMATE  OF  FUNDS  OR  APPROPRIATIONS
REQUESTED ANNUALLY FOR INCLUSION IN THE EXECUTIVE BUDGET;
  2.  MAY,  IN  THE  NAME  OF THE STATE, AS FURTHER PROVIDED WITHIN THIS
TITLE, CONTRACT TO MAKE, WITHIN THE LIMITATIONS OF APPROPRIATION  AVAIL-
ABLE THEREFOR, STATE ASSISTANCE PAYMENTS TOWARD THE COSTS OF AN APPROVED
PROJECT ON ELIGIBLE LAND. SUCH CONTRACTS SHALL BE SUBJECT TO APPROVAL BY
THE STATE COMPTROLLER AND, AS TO FORM, BY THE ATTORNEY GENERAL;
  3.  SHALL  APPROVE  VOUCHERS  FOR THE PAYMENTS PURSUANT TO AN APPROVED
CONTRACT. ALL SUCH PAYMENTS SHALL BE PAID ON THE AUDIT  AND  WARRANT  OF
THE STATE COMPTROLLER; AND
  4. MAY PERFORM SUCH OTHER AND FURTHER ACTS AS MAY BE NECESSARY, PROPER
OR DESIRABLE TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
  §  7. Subdivision 1 of section 163 of the state finance law is amended
by adding a new paragraph l to read as follows:
  L. "WOOD PRODUCTS" SHALL MEAN ANY ITEMS MADE OF  WOOD  OR  WOOD  FIBER
FROM ANY SPECIES OF TREE.
  § 8. Subdivision 6 of section 163 of the state finance law, as amended
by chapter 569 of the laws of 2015, is amended to read as follows:
  6. Discretionary buying thresholds. Pursuant to guidelines established
by the state procurement council: the commissioner may purchase services
and  commodities in an amount not exceeding eighty-five thousand dollars

S. 7508                            145                           A. 9508

without a  formal  competitive  process;  state  agencies  may  purchase
services  and  commodities  in  an  amount  not exceeding fifty thousand
dollars without a formal competitive process;  and  state  agencies  may
purchase  commodities  or services from small business concerns or those
certified pursuant to articles fifteen-A and seventeen-B of  the  execu-
tive  law,  or commodities or technology that are recycled or remanufac-
tured, or commodities that are food, including milk and  milk  products,
grown,  produced  or  harvested in New York state; OR WOOD PRODUCTS MADE
FROM WOOD OR WOOD FIBER, GROWN AND MANUFACTURED IN NEW YORK STATE in  an
amount  not  exceeding  two  hundred  thousand  dollars without a formal
competitive process.
  § 9. Subdivision 6-c of section 163 of the state finance law, as added
by section 2 of part P of chapter 55 of the laws of 2013, is amended  to
read as follows:
  6-c.  Pursuant  to  the  authority provided in subdivision six of this
section, for the purchase of commodities that are food,  including  milk
and  milk  products,  grown, produced or harvested in New York state, OR
WOOD PRODUCTS MADE FROM WOOD OR WOOD FIBER, GROWN  AND  MANUFACTURED  IN
NEW  YORK  STATE where such commodities exceed fifty thousand dollars in
value, state agencies must advertise the discretionary purchase  on  the
state  agency  website  for  a  reasonable  period  of time and make the
discretionary purchase based on the lowest price that  meets  the  state
agency's form, function and utility.
  § 10. 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.
  §  11.  This  act  shall take effect immediately, provided however the
amendments to sections 480-a and 480-b of the real property tax law made
by sections three and four of this act shall take effect on  January  1,
2019,  provided  further that the amendments to section 163 of the state
finance law made by sections seven, eight and nine of this act shall not
affect the repeal of such section and shall be  deemed  repealed  there-
with, provided further that, the forestry exemption assistance in subdi-
vision  13  of  section  480-a  of the real property tax law as added by
section three of this act shall apply beginning  with  final  tax  rolls
filed in 2019.

                                 PART AA

  Section  1. Subdivision 3 of section 92-s of the state finance law, as
amended by section 2-a of part JJ of chapter 58 of the laws of 2017,  is
amended to read as follows:
  3.  Such  fund shall consist of the amount of revenue collected within
the state from the amount of revenue, interest and  penalties  deposited
pursuant  to  section  fourteen  hundred  twenty-one of the tax law, the
amount of fees and penalties received from easements or leases  pursuant
to  subdivision fourteen of section seventy-five of the public lands law
and the money received as annual service  charges  pursuant  to  section
four  hundred four-n of the vehicle and traffic law, all moneys required
to be deposited therein from the contingency reserve  fund  pursuant  to

S. 7508                            146                           A. 9508

section  two  hundred  ninety-four of chapter fifty-seven of the laws of
nineteen hundred ninety-three,  all  moneys  required  to  be  deposited
pursuant  to  section thirteen of chapter six hundred ten of the laws of
nineteen  hundred  ninety-three,  repayments  of  loans made pursuant to
section 54-0511 of the environmental conservation law, all moneys to  be
deposited from the Northville settlement pursuant to section one hundred
twenty-four  of  chapter  three  hundred  nine  of  the laws of nineteen
hundred ninety-six, provided however, that such  moneys  shall  only  be
used  for  the cost of the purchase of private lands in the core area of
the central Suffolk pine barrens pursuant to a consent  order  with  the
Northville  industries  signed  on  October thirteenth, nineteen hundred
ninety-four and the related resource restoration and  replacement  plan,
the  amount  of  penalties  required  to be deposited therein by section
71-2724 of the environmental conservation law, all moneys required to be
deposited pursuant to article thirty-three of the environmental  conser-
vation  law, all fees collected pursuant to subdivision eight of section
70-0117 of the environmental  conservation  law,  all  moneys  collected
pursuant  to  title thirty-three of article fifteen of the environmental
conservation law, beginning with the fiscal  year  commencing  on  April
first,  two  thousand thirteen, nineteen million dollars, and all fiscal
years thereafter, twenty-three million dollars plus all  funds  received
by  the  state  each  fiscal year in excess of the greater of the amount
received from April first, two thousand  twelve  through  March  thirty-
first,  two  thousand  thirteen  or  one  hundred twenty-two million two
hundred thousand dollars, from the payments collected pursuant to subdi-
vision four of section 27-1012 of the environmental conservation law and
all funds collected pursuant to section  27-1015  of  the  environmental
conservation  law,  [provided  such  funds  shall  not be less than four
million dollars for the fiscal year commencing April first, two thousand
thirteen, and not less than eight million dollars for all  fiscal  years
thereafter]  and  all  other moneys credited or transferred thereto from
any other fund or source pursuant to law.  All  such  revenue  shall  be
initially deposited into the environmental protection fund, for applica-
tion as provided in subdivision five of this section.
  §  2.  Paragraph  (i)  of  subdivision 2 and paragraphs (k) and (l) of
subdivision 3 of section 97-b of the state finance law are REPEALED.
  § 3. Subdivision 1 of section  97-b  of  the  state  finance  law,  as
amended  by  section  5  of part T of chapter 57 of the laws of 2017, is
amended to read as follows:
  1. There is hereby established in the custody of the state comptroller
a nonlapsing revolving fund to be known as the "hazardous waste remedial
fund", which shall consist of a  "site  investigation  and  construction
account", an "industry fee transfer account", an "environmental restora-
tion project account", "hazardous waste cleanup account", AND a "hazard-
ous waste remediation oversight and assistance account"[, a "solid waste
mitigation account", and a "drinking water response account"].
  §  4.  Subdivisions  4  and  7 of section 27-1201 of the environmental
conservation law are REPEALED and subdivisions 5, 6, and  8  of  section
27-1201 are renumbered subdivisions 4, 5, and 6.
  §  5.  Subdivision 6 of section 27-1203 of the environmental conserva-
tion law, as added by section 4 of part T of chapter 57 of the  laws  of
2017, is amended to read as follows:
  6.  Where the department has determined through a preliminary investi-
gation conducted pursuant to subdivision four of  this  section  that  a
solid  waste  site  is  causing or substantially contributing to contam-
ination of a public drinking water supply, the owner or  operator  of  a

S. 7508                            147                           A. 9508

solid  waste  site shall, at the department's written request, cooperate
with any and all remedial measures deemed necessary and which  shall  be
undertaken  by  the  department,  in  conjunction with the department of
health, for the mitigation and remediation of a solid waste site or area
which is necessary to ensure that drinking water meets applicable stand-
ards, including maximum contaminant levels, notification levels, maximum
residual  disinfectant  levels,  or  action  levels  established  by the
department of health. The department may implement necessary measures to
mitigate and remediate the solid waste site within amounts  appropriated
for such purposes from the solid waste mitigation [account] PROGRAM.
  §  6. Paragraph b of subdivision 6, subdivision 9, subdivision 11, and
paragraph e of subdivision 12 of section 27-1205  of  the  environmental
conservation  law,  as added by section 4 of part T of chapter 57 of the
laws of 2017, are amended to read as follows:
  b. the threat makes it prejudicial to the  public  interest  to  delay
action  until  a hearing can be held pursuant to this title, the depart-
ment may, pursuant to paragraph a of subdivision three of  this  section
and within the funds available to the department from the drinking water
response  [account]  PROGRAM, develop and implement, in conjunction with
the department of health, all reasonable and  necessary  mitigation  and
remedial  measures to address drinking water contamination for such site
to ensure that drinking  water  meets  applicable  standards,  including
maximum contaminant levels, notification levels, maximum residual disin-
fectant levels or action levels established by the department of health.
Findings  required  pursuant to this subdivision shall be in writing and
may be made by the commissioner of health on an ex parte  basis  subject
to judicial review.
  9.  When a municipality develops and implements remediation to address
a drinking water contamination site, determined pursuant to  subdivision
four  of  this  section,  and the plan is approved by the department, in
conjunction with the department of health, which is owned  or  has  been
operated  by  such  municipality  or when the department, in conjunction
with the department of health, pursuant to an agreement with  a  munici-
pality,  develops  and  implements  such  remediation,  the commissioner
shall, in the name of the state, agree in such agreement to provide from
the drinking water response [account] PROGRAM, within the limitations of
appropriations therefor, seventy-five percent of the eligible design and
construction costs of such program for which such municipality is liable
solely because of its ownership and/or operation of such site and  which
are  not  recovered from or reimbursed or paid by a responsible party or
the federal government.
  11. Moneys for actions taken or to be taken  by  the  department,  the
department  of  health  or any other state agency pursuant to this title
shall be payable directly to  such  agencies  from  the  drinking  water
response  [account]  PROGRAM  pursuant  to section ninety-seven-b of the
state finance law.
  e. The expense of any such mitigation by the department or the depart-
ment of health shall be paid by the drinking  water  response  [account]
PROGRAM,  but may be recovered from any responsible person in any action
or proceeding brought pursuant to the state  finance  law,  this  title,
other  state  or federal statute, or common law if the person so author-
ized in writing is an employee, agent, consultant, or  contractor  of  a
responsible  person  acting at the direction of the department, then the
expense of any such sampling and analysis shall be paid by the responsi-
ble person.

S. 7508                            148                           A. 9508

  § 7. The section heading and subdivisions 2 and 3 of  section  27-1207
of  the  environmental conservation law, as added by section 4 of part T
of chapter 57 of the laws of 2017, are amended and a new  subdivision  5
is added to read as follows:
  Use  and reporting of the solid waste mitigation [account] PROGRAM and
the drinking water response [account] PROGRAM.
  2. The solid waste mitigation [account] PROGRAM shall be  made  avail-
able  to the department and the department of health, as applicable, for
the following purposes:
  a. enumeration and assessment of solid waste sites;
  b. investigation and environmental  characterization  of  solid  waste
sites, including environmental sampling;
  c. mitigation and remediation of solid waste sites;
  d. monitoring of solid waste sites; and
  e.  administration  and  enforcement  of  the  requirements of section
27-1203 of this title.
  3. The drinking water response [account] PROGRAM shall be made  avail-
able  to the department and the department of health, as applicable, for
the following purposes:
  a. mitigation of drinking water contamination;
  b. investigation of drinking water contamination;
  c. remediation of drinking water contamination; and
  d. administration and enforcement of the requirements  of  this  title
except the provisions of section 27-1203.
  5.  ALL  MONEYS  RECOVERED PURSUANT TO TITLE TWELVE OF ARTICLE TWENTY-
SEVEN OF THIS CHAPTER SHALL BE DEPOSITED INTO THE CAPITAL PROJECTS  FUND
(30000).
  § 8. This act shall take effect immediately.

                                 PART BB

  Section 1. Approximately 40 percent of the food produced in the United
States  today goes uneaten. Much of this organic waste is disposed of in
solid waste landfills, where its  decomposition  accounts  for  over  15
percent  of  our nation's emissions of methane, a potent greenhouse gas.
Meanwhile, an estimated 2.5 million New Yorkers are  facing  hunger  and
food insecurity.  Recognizing the importance of food scraps on our envi-
ronment,  economy, and the health of New Yorkers, this act establishes a
food scraps hierarchy for the state of New York. The first tier  of  the
hierarchy  is  source  reduction,  reducing  the  volume of surplus food
generated. The second tier is recovery, feeding wholesome food to hungry
people.  Third is repurposing, feeding  animals.  Fourth  is  recycling,
processing  any  leftover  food  such  as  by  composting  or  anaerobic
digestion to create a nutrient-rich soil amendment.  This legislation is
designed to address each tier of the  hierarchy  by:    encouraging  the
prevention  of food scraps generation by commercial generators and resi-
dents; directing the recovery of excess wholesome food from  high-volume
commercial  food  scraps  generators;  and  ensuring  that a significant
portion of inedible food scraps from high-volume food scraps  generators
is  managed  in  a sustainable manner, and does not end up being sent to
landfills or incinerators.   In addition, the state  is  supporting  the
recovery  of  wholesome  food by providing grants from the environmental
protection fund to increase capacity of food banks, conduct food  scraps
audits  of high-volume generators of food scraps, support implementation
of pollution prevention projects identified by such audits,  and  expand
capacity of generators and municipalities to donate and recycle food.

S. 7508                            149                           A. 9508

  §  2.  Article  27 of the environmental conservation law is amended by
adding a new title 22 to read as follows:
                                TITLE 22
                       FOOD RECOVERY AND RECYCLING
SECTION 27-2201. DEFINITIONS.
        27-2203. DESIGNATED FOOD SCRAPS GENERATOR RESPONSIBILITIES.
        27-2205. TRANSPORTER RESPONSIBILITIES.
        27-2207. TRANSFER  FACILITY  OR  OTHER INTERMEDIARY RESPONSIBIL-
                   ITIES.
        27-2209. FOOD SCRAPS DISPOSAL PROHIBITION.
        27-2211. DEPARTMENT RESPONSIBILITIES.
        27-2213. REGULATIONS.
        27-2215. EXCLUSIONS.
        27-2217. PREEMPTION AND SEVERABILITY.
§ 27-2201. DEFINITIONS.
  1. "DESIGNATED FOOD SCRAPS GENERATOR" MEANS A PERSON WHO GENERATES  AT
A  SINGLE  LOCATION  AN  ANNUAL  AVERAGE OF TWO TONS PER WEEK OR MORE OF
EXCESS FOOD AND FOOD SCRAPS, BASED ON A METHODOLOGY ESTABLISHED  BY  THE
DEPARTMENT  PURSUANT  TO  REGULATIONS,  INCLUDING,  BUT  NOT LIMITED TO,
SUPERMARKETS, RESTAURANTS, HIGHER EDUCATIONAL INSTITUTIONS, HOTELS, FOOD
PROCESSORS, CORRECTIONAL FACILITIES, SPORTS OR ENTERTAINMENT VENUES, AND
HOSPITALS OR OTHER HEALTH CARE FACILITIES. FOR A LOCATION WITH  MULTIPLE
INDEPENDENT  FOOD  SERVICE BUSINESSES, SUCH AS A MALL OR COLLEGE CAMPUS,
THE ENTITY RESPONSIBLE FOR CONTRACTING  WITH  A  TRANSPORTER  FOR  SOLID
WASTE  TRANSPORTATION  SERVICES  IS RESPONSIBLE FOR MANAGING EXCESS FOOD
AND FOOD SCRAPS FROM THE INDEPENDENT  BUSINESSES  FOR  THE  PURPOSES  OF
DETERMINING IF THE GENERATOR IS A DESIGNATED FOOD SCRAPS GENERATOR.
  2.  "EXCESS FOOD" MEANS WHOLESOME FOOD THAT IS NOT SOLD OR USED BY ITS
GENERATOR.
  3. "FOOD SCRAPS" MEANS INEDIBLE SOLID OR LIQUID FOOD,  TRIMMINGS  FROM
THE  PREPARATION OF FOOD, FOOD-SOILED PAPER, AND EXCESS FOOD THAT IS NOT
DONATED. FOOD SCRAPS SHALL NOT INCLUDE USED COOKING OIL,  YELLOW  GREASE
OR  FOOD  FROM  RESIDENTIAL  SOURCES  OR  ANY FOOD WHICH IS SUBJECT TO A
RECALL OR SEIZURE DUE TO THE PRESENCE OF PATHOGENS,  INCLUDING  BUT  NOT
LIMITED TO:  LISTERIA MONOCYTOGENES, CONFIRMED CLOSTRIDIUM BOTULINUM, E.
COLI 0157:H7 AND ALL SALMONELLA IN READY-TO-EAT FOODS.
  4.  "INCINERATOR"  SHALL HAVE THE SAME MEANING AS SUCH TERM IS DEFINED
IN SECTION 27-0707 OF THIS ARTICLE.
  5. "ORGANICS RECYCLER" MEANS A  FACILITY  THAT  RECYCLES  FOOD  SCRAPS
THROUGH  USE AS ANIMAL FEED OR A FEED INGREDIENT, RENDERING, LAND APPLI-
CATION, COMPOSTING, AEROBIC DIGESTION, ANAEROBIC DIGESTION, OR FERMENTA-
TION.  ANIMAL SCRAPS, FOOD SOILED PAPER, AND POST-CONSUMER  FOOD  SCRAPS
ARE  PROHIBITED  FOR  USE  AS  ANIMAL  FEED OR AS A FEED INGREDIENT. THE
PROPORTION OF THE PRODUCT CREATED FROM FOOD SCRAPS BY  A  COMPOSTING  OR
DIGESTION FACILITY, INCLUDING A WASTEWATER TREATMENT PLANT THAT OPERATES
A DIGESTION FACILITY, OR OTHER TREATMENT SYSTEM, MUST BE USED IN A BENE-
FICIAL MANNER AS A SOIL AMENDMENT AND SHALL NOT BE DISPOSED OF OR INCIN-
ERATED.    THE DEPARTMENT MAY DESIGNATE OTHER TECHNIQUES OR TECHNOLOGIES
BY REGULATION, PROVIDED THEY DO NOT INCLUDE INCINERATION OR LANDFILLING.
IF WASTEWATER TREATMENT PLANTS RECYCLING FOOD SCRAPS CAN DEMONSTRATE  TO
THE  DEPARTMENT'S  SATISFACTION  THAT BENEFICIAL USE OF BIOSOLIDS IS NOT
AVAILABLE OR NOT ECONOMICALLY FEASIBLE, THE BIOSOLIDS MAY BE DISPOSED OF
IN A LANDFILL OR INCINERATED AT A FACILITY AUTHORIZED  TO  ACCEPT  THOSE
WASTES.
  6. "PERSON" MEANS ANY INDIVIDUAL, BUSINESS ENTITY, PARTNERSHIP, COMPA-
NY,  CORPORATION,  NOT-FOR-PROFIT CORPORATION, ASSOCIATION, GOVERNMENTAL

S. 7508                            150                           A. 9508

ENTITY, PUBLIC BENEFIT CORPORATION, PUBLIC AUTHORITY, FIRM, ORGANIZATION
OR ANY OTHER GROUP OF INDIVIDUALS, OR ANY OFFICER OR EMPLOYEE  OR  AGENT
THEREOF.
  7. "SINGLE LOCATION" MEANS CONTIGUOUS PROPERTY UNDER COMMON OWNERSHIP,
WHICH MAY INCLUDE ONE OR MORE BUILDINGS.
  8.  "TRANSFER FACILITY" MEANS A FACILITY THAT RECEIVES SOLID WASTE FOR
THE PURPOSE OF SUBSEQUENT TRANSFER TO ANOTHER FACILITY FOR FURTHER PROC-
ESSING, TREATMENT, TRANSFER, OR DISPOSAL.
§ 27-2203. DESIGNATED FOOD SCRAPS GENERATOR RESPONSIBILITIES.
  1. BEGINNING JANUARY FIRST, TWO THOUSAND TWENTY-ONE:
  (A) ALL DESIGNATED FOOD SCRAPS GENERATORS SHALL SEPARATE THEIR  EXCESS
FOOD  FOR DONATION FOR HUMAN CONSUMPTION TO THE MAXIMUM EXTENT PRACTICA-
BLE, AND IN ACCORDANCE  WITH  APPLICABLE  LAWS,  RULES  AND  REGULATIONS
RELATED TO FOOD DONATION; AND
  (B)  EXCEPT  AS  PROVIDED  IN  PARAGRAPH (C) OF THIS SUBDIVISION, EACH
DESIGNATED FOOD SCRAPS GENERATOR THAT IS WITHIN A FORTY-MILE  RADIUS  OF
AN ORGANICS RECYCLER REGULATED BY THE DEPARTMENT, TO THE EXTENT THAT THE
RECYCLER  HAS  CAPACITY  TO  ACCEPT  A SUBSTANTIAL PORTION OR ALL OF THE
GENERATOR'S FOOD SCRAPS AS DETERMINED BY  THE  DEPARTMENT  ON  A  YEARLY
BASIS, SHALL:
  (I) SEPARATE ITS REMAINING FOOD SCRAPS FROM OTHER SOLID WASTE;
  (II)  ENSURE  PROPER  STORAGE FOR FOOD SCRAPS COLLECTION ON SITE WHICH
SHALL PRECLUDE  SUCH  MATERIALS  FROM  BECOMING  ODOROUS  OR  ATTRACTING
VECTORS  SUCH  AS  A CONTAINER THAT HAS A LID AND A LATCH THAT KEEPS THE
LID CLOSED, IS RESISTANT TO TAMPERING BY RODENTS OR OTHER  WILDLIFE  AND
HAS SUFFICIENT CAPACITY;
  (III)  HAVE  INFORMATION  AVAILABLE AND PROVIDE TRAINING FOR EMPLOYEES
CONCERNING THE PROPER METHODS TO SEPARATE AND STORE FOOD SCRAPS; AND
  (IV) OBTAIN A TRANSPORTER THAT WILL DELIVER  ITS  FOOD  SCRAPS  TO  AN
ORGANICS RECYCLER, EITHER DIRECTLY OR THROUGH AN INTERMEDIARY, SELF-HAUL
ITS  FOOD  SCRAPS TO AN ORGANICS RECYCLER, EITHER DIRECTLY OR THROUGH AN
INTERMEDIARY, OR PROVIDE FOR ORGANICS RECYCLING ON-SITE.
  (C) THE PROVISIONS OF PARAGRAPH (B)  OF  THIS  SUBDIVISION  SHALL  NOT
APPLY  TO ANY DESIGNATED FOOD SCRAPS GENERATOR THAT HAS ALL OF ITS SOLID
WASTE PROCESSED IN A MIXED SOLID WASTE COMPOSTING OR OTHER  MIXED  SOLID
WASTE ORGANICS RECYCLING FACILITY.
  2. ALL DESIGNATED FOOD SCRAPS GENERATORS SHALL SUBMIT AN ANNUAL REPORT
TO THE DEPARTMENT ON OR BEFORE MARCH FIRST, TWO THOUSAND TWENTY-TWO, AND
ANNUALLY  THEREAFTER,  IN  AN  ELECTRONIC FORMAT. THE ANNUAL REPORT MUST
SUMMARIZE THE AMOUNT OF EXCESS  FOOD  AND  FOOD  SCRAPS  GENERATED,  THE
AMOUNT  OF EXCESS FOOD DONATED, AN OUTLINE OF ITS EFFORTS TO ESTABLISH A
RELATIONSHIP WITH A FOOD  RECOVERY  ORGANIZATION,  THE  AMOUNT  OF  FOOD
SCRAPS  RECYCLED,  THE  ORGANICS  RECYCLER  OR  RECYCLERS AND ASSOCIATED
TRANSPORTERS USED, AND ANY OTHER INFORMATION AS REQUIRED BY THE  DEPART-
MENT.
  3.  A DESIGNATED FOOD SCRAPS GENERATOR MAY PETITION THE DEPARTMENT FOR
A TEMPORARY WAIVER FROM SOME OR ALL OF THE REQUIREMENTS OF  THIS  TITLE.
THE  PETITION MUST INCLUDE EVIDENCE OF UNDUE HARDSHIP BASED ON:  (A) THE
ORGANICS RECYCLER LOCATED WITHIN A FORTY-MILE RADIUS OF  THE  DESIGNATED
FOOD  SCRAPS GENERATOR NOT HAVING SUFFICIENT CAPACITY; OR (B) THE UNIQUE
CIRCUMSTANCES OF THE GENERATOR.
  THE DEPARTMENT SHALL ISSUE A WAIVER FROM THE RECYCLING REQUIREMENTS OF
THIS SECTION PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION IF THE DESIG-
NATED FOOD SCRAP GENERATOR DEMONSTRATES THAT THE COST OF RECYCLING  FOOD
SCRAPS IS MORE THAN THE COST OF DISPOSING OF OR INCINERATING SOLID WASTE
BY  PROVIDING ESTIMATES FROM TWO DISPOSAL FACILITIES, THREE HAULERS, AND

S. 7508                            151                           A. 9508

TWO RECYCLERS THAT ARE REPRESENTATIVE OF THE COSTS THAT WOULD BE  APPLI-
CABLE TO THE GENERATOR UNDER NORMAL CIRCUMSTANCES.  A WAIVER SHALL BE NO
LONGER  THAN ONE YEAR IN DURATION; PROVIDED, HOWEVER, THE DEPARTMENT MAY
RENEW SUCH WAIVER.
§ 27-2205. TRANSPORTER RESPONSIBILITIES.
  1.  ANY  TRANSPORTER  THAT  COLLECTS  SOURCE-SEPARATED FOOD SCRAPS FOR
RECYCLING FROM A DESIGNATED FOOD SCRAPS GENERATOR SHALL:
  (A) DELIVER COLLECTED FOOD SCRAPS TO  A  TRANSFER  FACILITY  OR  OTHER
INTERMEDIARY THAT WILL DELIVER SUCH FOOD SCRAPS TO AN ORGANICS RECYCLER;
OR
  (B) DELIVER COLLECTED FOOD SCRAPS DIRECTLY TO AN ORGANICS RECYCLER.
  2.  ANY  TRANSPORTER THAT COLLECTS SOURCE-SEPARATED FOOD SCRAPS FROM A
DESIGNATED FOOD SCRAPS GENERATOR SHALL NOT  COMMINGLE  THE  FOOD  SCRAPS
WITH  ANY  OTHER  SOLID  WASTE  UNLESS SUCH WASTE CAN BE PROCESSED BY AN
ORGANICS RECYCLER.
§ 27-2207. TRANSFER FACILITY OR OTHER INTERMEDIARY RESPONSIBILITIES.
  ANY TRANSFER FACILITY OR OTHER INTERMEDIARY THAT RECEIVES SOURCE-SEPA-
RATED FOOD SCRAPS FROM A DESIGNATED FOOD SCRAPS  GENERATOR  MUST  ENSURE
THAT  THE  FOOD  SCRAPS  ARE  TAKEN TO AN ORGANICS RECYCLER. NO TRANSFER
FACILITY OR OTHER INTERMEDIARY MAY COMMINGLE THE FOOD  SCRAPS  WITH  ANY
OTHER  SOLID  WASTE  UNLESS  SUCH  WASTE CAN BE PROCESSED BY AN ORGANICS
RECYCLER.
§ 27-2209. FOOD SCRAPS DISPOSAL PROHIBITION.
  NO INCINERATOR OR LANDFILL SHALL KNOWINGLY ACCEPT  OR  COMMINGLE  WITH
SOLID  WASTE  SOURCE-SEPARATED  FOOD  SCRAPS FROM DESIGNATED FOOD SCRAPS
GENERATORS REQUIRED TO SEND FOOD  SCRAPS  TO  AN  ORGANICS  RECYCLER  AS
OUTLINED UNDER SECTION 27-2203 OF THIS TITLE, EITHER DIRECTLY OR FROM AN
INTERMEDIARY,  AFTER  JANUARY FIRST, TWO THOUSAND TWENTY-ONE, UNLESS THE
DESIGNATED FOOD SCRAPS GENERATOR HAS RECEIVED A TEMPORARY  WAIVER  UNDER
SUBDIVISION THREE OF SECTION 27-2203 OF THIS TITLE.
§ 27-2211. DEPARTMENT RESPONSIBILITIES.
  1.  THE  DEPARTMENT  SHALL PUBLISH ON ITS WEBSITE A LIST OF ALL DESIG-
NATED FOOD SCRAPS GENERATORS, ORGANICS RECYCLERS, FOOD  RECOVERY  ORGAN-
IZATIONS, AND ALL TRANSPORTERS THAT MANAGE SOURCE-SEPARATED FOOD SCRAPS.
  2. NO LATER THAN JUNE FIRST, TWO THOUSAND TWENTY, THE DEPARTMENT SHALL
ASSESS  THE  CAPACITY  OF  ORGANIC  RECYCLERS AND NOTIFY DESIGNATED FOOD
SCRAPS GENERATORS IF THEY ARE REQUIRED TO COMPLY WITH THE PROVISIONS  OF
PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION 27-2203 OF THIS TITLE.
  3. THE DEPARTMENT SHALL DEVELOP AND MAKE AVAILABLE EDUCATIONAL MATERI-
ALS  TO  ASSIST  DESIGNATED  FOOD SCRAPS GENERATORS WITH COMPLIANCE WITH
THIS TITLE. THE DEPARTMENT SHALL ALSO  DEVELOP  EDUCATION  MATERIALS  ON
FOOD  WASTE  MINIMIZATION  AND  ENCOURAGE  MUNICIPALITIES TO DISSEMINATE
THESE MATERIALS BOTH ON THEIR MUNICIPAL WEBSITES  AND  IN  ANY  RELEVANT
FUTURE MAILINGS TO THEIR RESIDENTS AS THEY MAY DISTRIBUTE.
§ 27-2213. REGULATIONS.
  THE  DEPARTMENT  SHALL  PROMULGATE  RULES AND REGULATIONS NECESSARY TO
IMPLEMENT THE PROVISIONS OF THIS TITLE. AT  A  MINIMUM,  THE  DEPARTMENT
SHALL  PROMULGATE  RULES  AND REGULATIONS THAT SET FORTH THE METHODOLOGY
THE DEPARTMENT WILL USE TO DETERMINE WHO IS  A  DESIGNATED  FOOD  SCRAPS
GENERATOR,  AFTER  CONSULTING  WITH  INDUSTRY  REPRESENTATIVES, AND WHAT
PROCESS A DESIGNATED GENERATOR MUST  FOLLOW  TO  DISPUTE  SUCH  DETERMI-
NATION,  THE  WAIVER  PROCESS, AND HOW DESIGNATED FOOD SCRAPS GENERATORS
SHALL COMPLY WITH THE PROVISIONS OF PARAGRAPH (A) AND  SUBPARAGRAPH  (I)
OF PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION 27-2203 OF THIS TITLE.
§ 27-2215. EXCLUSIONS.

S. 7508                            152                           A. 9508

  1. THIS TITLE SHALL NOT APPLY TO ANY DESIGNATED FOOD SCRAPS GENERATORS
LOCATED  IN  A CITY WITH A POPULATION OF ONE MILLION OR MORE WHICH HAS A
LOCAL LAW, ORDINANCE OR REGULATION IN PLACE WHICH REQUIRES THE DIVERSION
OF EXCESS FOOD AND FOOD SCRAPS FROM DISPOSAL.
  2. THIS TITLE DOES NOT APPLY TO ELEMENTARY AND SECONDARY SCHOOLS.
§ 27-2217. PREEMPTION AND SEVERABILITY.
  1.  ANY  PROVISION  OF  ANY  LOCAL LAW OR ORDINANCE, OR ANY REGULATION
PROMULGATED THERETO, GOVERNING THE RECYCLING OF FOOD SCRAPS  SHALL  UPON
THE  EFFECTIVE  DATE OF THIS TITLE BE PREEMPTED, EXCEPT IN A CITY WITH A
POPULATION OF ONE MILLION OF MORE.  HOWEVER, LOCAL LAWS  OR  ORDINANCES,
OR  PARTS  THEREOF,  AFFECTING THE RECYCLING OF FOOD SCRAPS THAT INCLUDE
GENERATORS NOT COVERED BY THIS TITLE SHALL NOT BE PREEMPTED.
  2. THE PROVISIONS OF THIS TITLE SHALL BE SEVERABLE AND IF ANY  PORTION
THEREOF  OR  THE APPLICABILITY THEREOF TO ANY PERSON OR CIRCUMSTANCES IS
HELD INVALID, THE REMAINDER OF THIS TITLE AND  THE  APPLICATION  THEREOF
SHALL NOT BE AFFECTED THEREBY.
  § 3. This act shall take effect immediately.

                                 PART CC

  Section  1.  Subdivisions 10 and 11 of section 57-0107 of the environ-
mental conservation law, as amended by chapter 267 of the laws of  2015,
are amended to read as follows:
  10.  "Central  Pine  Barrens  area"  shall mean the contiguous area as
described and bounded as follows:
  Beginning at a point where the southerly side of Route 25A  intersects
the easterly side of Miller Place Road; thence southward along the east-
erly  boundary  of  Miller  Place Road to Helme Avenue; thence southward
along the easterly boundary  of  Helme  Avenue  to  Miller  Place-Middle
Island  Road;  thence  southward  along  the easterly boundary of Miller
Place-Middle Island Road to Whiskey  Road;  thence  westward  along  the
southerly  boundary  of  Whiskey  Road to Mount Sinai-Coram Road; thence
southward along the easterly  boundary  of  Mount  Sinai-Coram  Road  to
Middle  Country  Road  (Route  25);  thence westward along the southerly
boundary of Route 25 to Patchogue-Mount Sinai Road  (County  Route  83);
thence southward along the easterly boundary of County Route 83 to Bicy-
cle  Path Drive; thence southeastward along the easterly side of Bicycle
Path Drive to Mt. McKinley Avenue; thence southward along  the  easterly
boundary  of  Mt.  McKinley  Avenue to Granny Road; thence northeastward
along the northerly boundary of Granny Road to Port  Jefferson-Patchogue
Road  (Route 112); thence southward along the easterly boundary of Route
112 to Horse Block Road (County Route 16);  thence  eastward  along  the
northerly  boundary of County Route 16 to Maine Avenue; thence northward
along the westerly boundary of Maine Avenue to Fire Avenue; thence east-
ward along the northerly boundary of  Fire  Avenue  to  John  Roe  Smith
Avenue;  thence  southward along the easterly boundary of John Roe Smith
Avenue to Jeff Street; thence eastward along the northerly  boundary  of
Jeff  Street  to  Hagerman  Avenue;  thence southward along the easterly
boundary of Hagerman Avenue to the Long Island Expressway  (Route  495);
thence eastward along the northerly boundary of Route 495 to the wester-
ly  side  of Yaphank Avenue (County Road 21); thence southward along the
westerly side of Yaphank Avenue to the south side  of  the  Long  Island
Expressway  (Route 495); thence eastward along the southerly side of the
Long Island Expressway (Route 495)  to  the  easterly  side  of  Yaphank
Avenue;  thence  southward  along  the  easterly side of Yaphank Avenue,
crossing Sunrise Highway (Route 27) to the south side of Montauk Highway

S. 7508                            153                           A. 9508

(County Road 80); thence southwestward along the south side  of  Montauk
Highway  (County  Road 80) to South Country Road; thence southward along
the easterly side of South Country Road to Fireplace Neck  Road;  thence
southward  along  the easterly side of Fireplace Neck Road to Beaver Dam
Road; thence eastward along the northerly side of Beaver Dam Road to the
westerly boundary of the Carmans River and the lands owned by the United
States known as Wertheim National Wildlife Refuge (the "Refuge"); thence
generally westerly and southerly to the waters of Bellport  Bay;  thence
generally easterly across the Bay and northerly along the easterly boun-
dary of the Refuge, including all lands currently part of the Refuge and
any lands which may become part of the Refuge in the future, to the east
side  of the southern terminus of Smith Road; thence northward along the
easterly side of Smith Road to the southwesterly corner of the  property
identified  as  District  200,  Section  974.50, Block 1, Lot 11; thence
eastward, northward and westward in a counter-clockwise direction  along
the  southern,  eastern  and northern boundaries of that property to the
easterly side of Smith Road; thence northward along  the  east  side  of
Smith  Road  to  Merrick  Road; thence northeasterly along the northerly
side of Merrick Road to the easterly  side  of  Surrey  Circle  and  the
southwest  corner  of  the  property identified as District 200, Section
880, Block 3, Lot 58.1; running thence easterly along the southerly side
of said lot to the west side of William Floyd Parkway (County Road  46);
thence northerly along the westerly side of William Floyd Parkway (Coun-
ty  Road  46),  crossing  Route  27, to the Long Island Railroad (LIRR);
thence eastward along the northerly boundary of  the  Long  Island  Rail
Road  tracks  7,500 feet; thence southward 500 feet; thence eastward 525
feet to the intersection of North Street and Manor-Yaphank Road;  thence
southward  along  the easterly boundary of Manor-Yaphank Road to Morich-
es-Middle Island Road; thence eastward along the northerly  boundary  of
Moriches-Middle  Island Road to Sunrise Highway (Route 27); thence east-
ward along the northerly boundary of Route 27 to an old  railroad  grade
(unpaved);  thence southeastward along the northerly boundary of the old
railroad grade (unpaved) to Old County Road (Route 71); thence  eastward
along  the  northerly  boundary of Route 71 to the Long Island Rail Road
tracks; thence eastward along the northerly boundary of the Long  Island
Rail Road tracks to Montauk Highway; thence eastward along the northerly
boundary  of  Montauk  Highway  to  Route 24; thence northward along the
westerly boundary of Route 24 to  Sunrise  Highway  (Route  27);  thence
eastward  along  the  northerly boundary of Route 27 to Squiretown Road;
thence northward along the westerly boundary of Squiretown Road to Upper
Red Creek Road; thence westward along the southern boundary of Upper Red
Creek to Lower Red Creek Road; thence southward along the easterly boun-
dary of Lower Red Creek Road to Hubbard  County  Park;  thence  westward
along  the northern boundary of Hubbard County Park to Riverhead-Hampton
Bays Road (Route 24); thence westward along the  southerly  boundary  of
Route 24 to Peconic Avenue; thence northward along the westerly boundary
of  Peconic  Avenue to the Riverhead-Southampton border; thence westward
along the  Riverhead-Southampton  border  and  the  Riverhead-Brookhaven
border  to  the  Forge  Road Bridge; thence northward along the westerly
boundary of the Forge Road Bridge to Forge  Road;  thence  northwestward
along the westerly boundary of Forge Road to the railroad tracks; thence
northward  along  the  westerly  boundary of Forge Road (unpaved) to the
intersection of Route 25 and  River  Road;  thence  westward  along  the
southerly  boundary  of  River  Road to Edwards Avenue; thence northward
along the westerly boundary of Edwards Avenue 3,800 feet;  thence  west-
ward  4,400 feet to an unnamed, unpaved road; thence northward along the

S. 7508                            154                           A. 9508

westerly boundary of the unnamed, unpaved road 150 feet; thence westward
and northwestward along  the  eastern  boundary  of  the  United  States
Navy/Grumman  Aerospace  Corporation  property  (as  of  1982) up to its
intersection  with Middle Country Road (Route 25); thence westward along
the southerly boundary of Route 25 to the intersection of Route  25  and
25A; thence northeastward, westward, and southwestward along the eastern
and northern boundary of the United States Navy/Grumman Aerospace Corpo-
ration  (as  of  1982) and located immediately east of Route 25A, to its
intersection with Route 25A; THENCE WESTWARD ALONG THE SOUTHERLY BOUNDA-
RY OF ROUTE 25A TO A POINT DUE SOUTH OF  THE  SOUTHEAST  CORNER  OF  THE
PARCEL IDENTIFIED AS DISTRICT 200, SECTION 128, BLOCK 1, LOT 3.1; THENCE
NORTHEASTWARD,  NORTHWARD AND WESTWARD ALONG THE SOUTHERLY, EASTERLY AND
NORTHERLY SIDES OF THE PARCEL IDENTIFIED AS DISTRICT 200,  SECTION  128,
BLOCK  1,  LOT  1  TO  THE  SOUTHEAST CORNER OF THE PARCEL IDENTIFIED AS
DISTRICT 200, SECTION 82, BLOCK 1, LOT 5.2; THENCE NORTHWARD  ALONG  THE
EAST  SIDE OF THIS PARCEL TO NORTH COUNTRY ROAD; THENCE NORTHWARD CROSS-
ING NORTH COUNTRY ROAD TO ITS NORTHERLY SIDE; THENCE EASTWARD ALONG  THE
NORTHERLY  SIDE  OF  NORTH COUNTRY ROAD TO THE BROOKHAVEN TOWN-RIVERHEAD
TOWN LINE; THENCE IN A GENERALLY NORTHWESTWARD DIRECTION ALONG SAID TOWN
LINE TO A POINT IN WADING RIVER  CREEK  WITH  THE  COORDINATES  40.96225
LATITUDE AND -72.863633 LONGITUDE; THENCE WESTWARD A DISTANCE OF APPROX-
IMATELY  90  FEET  TO  THE EASTERLY SIDE OF LILCO ROAD; THENCE SOUTHWARD
ALONG LILCO ROAD TO ITS INTERSECTION WITH THE NORTH SIDE OF NORTH  COUN-
TRY  ROAD; THENCE WESTWARD ALONG THE NORTH SIDE OF NORTH COUNTRY ROAD TO
THE SOUTHEAST CORNER OF THE PARCEL IDENTIFIED AS DISTRICT  200,  SECTION
39,  BLOCK  1, LOT 2; THENCE IN A NORTHWARD AND WESTWARD DIRECTION ALONG
THE EASTERLY AND NORTHERLY SIDES OF SAID PARCEL TO ITS NORTHWEST CORNER;
THENCE NORTHWARD ALONG THE WESTERLY BOUNDARY OF THE PARCEL IDENTIFIED AS
DISTRICT 200, SECTION 83, BLOCK 1, LOT 1.4 TO ITS NORTHWEST CORNER;  AND
THENCE  CONTINUING  IN  A WESTWARD DIRECTION ALONG THE NORTHERLY SIDE OF
THE PARCEL IDENTIFIED AS DISTRICT 200, SECTION 39, BLOCK 1, LOT 1.2  AND
THE SOUTHERLY EXTENT OF LONG ISLAND SOUND TO THE NORTHWEST CORNER OF THE
PROPERTY  IDENTIFIED  AS  DISTRICT  200,  SECTION  39, BLOCK 1, LOT 1.2;
THENCE SOUTHWARD ALONG THE WESTERLY BOUNDARY OF SAID PROPERTY  TO  NORTH
COUNTRY  ROAD; THENCE WEST ALONG THE SOUTHERLY BOUNDARY OF NORTH COUNTRY
ROAD TO THE NORTHWESTERN CORNER OF PROPERTY IDENTIFIED AS DISTRICT  200,
SECTION  82,  BLOCK 1, LOT 1.1; THENCE SOUTH ALONG THE WESTERLY BOUNDARY
OF SAID PROPERTY AND THE WESTERLY BOUNDARY OF THE PROPERTY IDENTIFIED AS
DISTRICT 200, SECTION 82, BLOCK 1, LOT 1.2 TO THE  NORTHWEST  CORNER  OF
PROPERTY  IDENTIFIED  AS  DISTRICT  200,  SECTION  82, BLOCK 1, LOT 5.1;
THENCE SOUTHWARD ALONG THE WESTERLY BOUNDARY OF  SAID  PROPERTY  TO  THE
NORTHEAST  CORNER  OF  THE  PROPERTY IDENTIFIED AS DISTRICT 200, SECTION
105, BLOCK 3, LOT 5, THENCE SOUTHWARD ALONG  THE  EASTERLY  BOUNDARY  OF
SAID  PROPERTY TO THE NORTH SIDE OF ROUTE 25A; THENCE SOUTHWARD CROSSING
ROUTE 25A TO ITS SOUTH SIDE; thence westward along the southerly bounda-
ry of Route 25A to the point or place of beginning, and excluding  [one]
TWO  distinct  [area] AREAS described as follows: The FIRST area defined
as beginning at a point where the westerly side of William Floyd Parkway
(County Road 46) meets  northerly  side  of  the  Long  Island  Railroad
(LIRR);  thence westward along the northerly side of the LIRR to Morich-
es-Middle Island Road; thence generally northwestward along the norther-
ly side of Moriches-Middle Island Road to the  southerly  side  of  Long
Island  Expressway (Route 495); thence eastward along the southerly side
of the Long Island Expressway  (Route  495)  to  the  westerly  side  of
William  Floyd  Parkway  (County  Road  46);  thence southward along the
westerly side of William Floyd Parkway (County Road 46)  and  containing

S. 7508                            155                           A. 9508

the  subdivision  known  as RB Industrial Park, to the point or place of
beginning AND THE SECOND AREA  DEFINED  AS  THE  PROPERTY  DESCRIBED  AS
DISTRICT 200, SECTION 39, BLOCK 1, LOT 1.1.
  11.  "Core preservation area" shall mean the core preservation area of
the Central Pine Barrens area which comprise the largest intact areas of
undeveloped pine barrens as described and bounded as follows:
  Beginning at a point where the northwestern corner  of  the  New  York
State Rocky Point Natural Resource Management Area (the "NYS Rocky Point
Land")  intersects the southerly side of NYS Route 25A; thence generally
southward and eastward along the generally westerly and southerly bound-
aries of the NYS Rocky Point Land (including the Currans Road Pond State
Wildlife Management Area, all adjacent or contiguous undeveloped Town of
Brookhaven parks, preserves, open space areas, or  reserved  areas,  and
the  crossings  of  the undeveloped Suffolk County property known as the
Port Jefferson - Westhampton road right of  way,  Whiskey  Road,  County
Route  21,  and Currans Road), and including those properties identified
as District 200, Section 346, Block 1, Lots 3 and 4, to the point  where
the  NYS  Rocky  Point  Land  meets  the  northerly side of NYS Route 25
(Middle Country Road); thence eastward along the northerly  boundary  of
NYS  Route  25 to the southeastern corner of that property west of Wood-
lots Road which is identified as District 200, Section 349, Block 2, Lot
1.3; thence northward along the easterly boundary of  that  property  to
the  Suffolk  County  Pine  Trail  Nature  Preserve; thence eastward and
southeastward along the southerly boundary of the  Suffolk  County  Pine
Trail  Nature  Preserve  where  the  Preserve  is  adjacent to developed
parcels or parcels in agricultural or horticultural use, or along a line
parallel to, and 100 (one hundred) feet south of, the Preserve where the
Preserve is adjacent to parcels which are  undeveloped  as  of  June  1,
1993,  to  County Route 46; thence southward along the easterly boundary
of County Route 46 to NYS Route 25; thence eastward along the  southerly
boundary  of  NYS  Route  25  to  the  Suffolk  County Pine Trail Nature
Preserve; thence southward along the westerly boundary  of  the  Suffolk
County  Pine  Trail  Nature  Preserve  where the Preserve is adjacent to
developed parcels, or along a line parallel to, and  100  (one  hundred)
feet  west  of,  the  Preserve where the Preserve is adjacent to parcels
which are undeveloped as of June 1, 1993, to the  northern  boundary  of
the  United  States land known as Brookhaven National Laboratory; thence
generally westward along the northerly boundary of  Brookhaven  National
Laboratory  to County Route 46 (William Floyd Parkway); thence generally
northwestward on a straight line to the intersection of Sally  Lane  and
Pond Lane; thence westward along the southerly side of Pond Lane to Ruth
Lane; thence northward along the westerly side of Ruth Lane to NYS Route
25;  thence  westward  along  the  northerly side of NYS Route 25 to the
southeast corner of the NYS Middle Island State Game Farm  and  Environ-
mental Education Center; thence northward, westward, and southward along
the  easterly,  northerly,  and  westerly  boundaries  of the NYS Middle
Island State Game Farm and Environmental Education Center to  NYS  Route
25;  thence westward along the southerly side of NYS Route 25, excluding
all parcels abutting that road which are developed as of June  1,  1993,
to Giant Oak Road; thence southward along the easterly side of Giant Oak
Road  to Medford Road; thence southwestward along the southeasterly side
of Medford Road crossing to the west side of Smith Road; thence souther-
ly along the westerly side of Smith Road  to  the  southeast  corner  of
District 200, Section 406, Block 1, Lot 6; thence westward and northward
along  the  southerly and westerly sides of said parcel to the southerly
side of the developed lands known as Strathmore Ridge; thence  westward,

S. 7508                            156                           A. 9508

northward and eastward along the southerly, westerly and northerly sides
of the developed lands known as Strathmore Ridge to the westerly side of
Smith  Road;  thence  northerly along the westerly side of Smith Road to
the  southerly side of NYS Route 25; thence westerly along the southerly
side of NYS Route 25, to the northwestern corner of that property  which
is  identified  as  District  200, Section 406, Block 1, Lot 4.3; thence
southerly along the westerly boundary of that  property  and  continuing
southward  along  the  westerly  sides  of  the properties identified as
District 200, Section 406, Block 1, Lot 4.6; District 200, Section  406,
Block  1,  Lot  4.4 and District 200, Section 504, Block 1, Lot 2 to the
southerly side of Longwood Road; thence  eastward  along  the  southerly
side of Longwood Road to the northwest corner of the property identified
as  District  200,  Section  504, Block 1, Lot 7.2; thence southward and
westward along the generally westerly boundary of  that  parcel  to  the
eastern  end of Rugby Lane (also known as Rugby Avenue or Rugby Road), a
paper street shown on Suffolk County tax  maps  District  200,  Sections
500, 502, and 503; thence westward along the northerly boundary of Rugby
Lane,  across  County Route 21, to the westerly boundary of County Route
21 (Yaphank - Middle Island Road); thence southward along  the  westerly
boundary  of  County  Route  21 to the northeastern corner of the parcel
identified as District 200, Section 529, Block 1, Lot 28, and  which  is
coterminous  with the southerly boundaries of the parcels located on the
south side of Rustic Lane; thence westward along the northerly  boundary
of  that  parcel  to  the  southwest  corner of the parcel identified as
District 200, Section 528, Block 5, Lot  2;  thence  northward  along  a
portion  of  the easterly boundary of the Carmans River, which comprises
the easterly boundary of the parcel identified as District 200,  Section
528,  Block  5, Lot 1, to its intersection with the southern boundary of
the Suffolk County Nature Preserve parcel identified  as  District  200,
Section 500, Block 1, Lot 1.4; thence eastward along the southern bound-
ary of that parcel to the southeast corner of that parcel; thence north-
ward  along the easterly boundary of that Suffolk County Nature Preserve
parcel to the southeast corner of the  Suffolk  County  Nature  Preserve
parcel identified as District 200, Section 500, Block 1, Lot 3.1, thence
generally  northward  along  the easterly boundary of that parcel to the
north side of East Bartlett Road; thence easterly along the  north  side
of  East Bartlett Road to the east side of County Road 21; thence south-
erly along the east side of County Road 21 to the  southwest  corner  of
District  200, Section 501, Block 1, Lot 2.1; thence easterly and north-
erly along the southern and eastern sides of that property and northward
along the easterly side of District 0200, 50100, Block 0100, Lot  002002
and across to the north side of Longwood Road; thence westerly along the
north  side  of  Longwood  Road to the southeast corner of District 200,
Section 482, Block 1, Lot 3.1; thence northward and eastward  along  the
easterly and southerly boundaries of that parcel to the northwest corner
of the parcel identified as District 200, Section 483, Block 2, Lot 1.4;
thence  eastward  along  the  southerly  property boundary of the parcel
identified as District 200, Section 482, Block 1, Lot 4 to the southeast
corner of that parcel; thence northward along the easterly  boundary  of
that  parcel to the northeast corner of that parcel; thence eastward and
northward along the southerly and  easterly  boundaries  of  the  parcel
identified as District 200, Section 456, Block 2, Lot 4 to the northeast
corner of that parcel; thence generally northerly and westerly along the
easterly  and northerly boundary of Prosser Pines County Nature Preserve
to County Road 21; thence westward (directly  across  County  Route  21)
along the southerly boundary of the property identified as District 200,

S. 7508                            157                           A. 9508

Section  434, Block 1, Lot 12.1, to the southwest corner of the property
identified as District 200, Section 434, Block 1, Lot 14.3, adjacent  to
the  eastern side of Cathedral Pines County Park; thence northward along
the  eastern  boundary  of  Cathedral Pines County Park to the southeast
corner of the property identified as District 200, Section 402, Block 1,
Lot 23.1, thence continuing northward along  the  easterly  boundary  of
that  property  to the southerly side of Lafayette Road; thence westward
along the southerly side of Lafayette Road to the  eastern  boundary  of
the property identified as District 200, Section 402, Block 1, Lot 24.7;
thence  generally  in  a counter-clockwise direction along the easterly,
northerly, westerly and northerly boundaries of  that  property  to  the
easterly boundary of the parcel identified as District 200, Section 402,
Block  1, Lot 19.2; thence northerly along the easterly side of said lot
to the southeast corner of the  property  identified  as  District  200,
Section  402,  Block  1, Lot 20, thence westward and northward along the
southerly and westerly sides of that property to the southerly  side  of
NYS  Route 25; thence westward along the southerly boundary of NYS Route
25 to the northwestern corner of the parcel identified as District  200,
Section  402,  Block  1,  Lot 16.4; thence generally southward along the
westerly boundary of that parcel to the northerly boundary of the parcel
identified as District 200, Section 454, Block 1, Lot 9.1; thence  west-
ward  along the northerly boundary of that parcel to East Bartlett Road;
thence southward along the easterly boundary of East  Bartlett  Road  to
its  intersection  with Ashton Road; thence westward to the northeastern
corner of the old filed map shown on District 200, Section  499;  thence
westward  and  southward  along the northerly and westerly boundaries of
the old filed map  shown  on  Suffolk  County  tax  maps  District  200,
Sections  498, 499, and 527 to Hillcrest Road; thence eastward along the
southerly boundary of Hillcrest Road to Ashton  Road;  thence  southward
along  the  easterly side of Ashton Road to Granny Road; thence eastward
along the southerly side of Granny Road to the northwesterly  corner  of
District  200,  Section  547, Block 1, Lot 18.1; thence generally south-
ward, westward, southward, eastward and northward in a counter-clockwise
direction along the western, northern, southern and  eastern  boundaries
of  said  parcel  to  the  southeast  corner of the parcel identified as
District 200, Section 548, Block 1, Lot 3; thence  northward  along  the
easterly  boundary of that parcel to its northeast corner; thence gener-
ally northward, northeastward and eastward along the westerly, northwes-
terly and northerly sides of German Boulevard to its  intersection  with
the northeasterly side of Lakeview Boulevard; thence southeastward along
the northeasterly side of Lakeview Boulevard to the westerly boundary of
the  parcel  identified  as  District  200, Section 611, Block 1, Lot 5;
thence northward along the westerly  boundary  of  that  parcel  to  its
northwest  corner;  thence  southward along the westerly boundary of the
parcel identified as District 200, Section 579, Block 3, Lot 1, compris-
ing part of the western bank of the Carmans River also  known  as  Upper
Lake,  to  the  northerly  side of Mill Road, also known as County Route
101; thence eastward along the northerly side of Mill Road to the north-
east corner of the parcel identified as District 200, Section 579, Block
3, Lot 19; thence westerly along the northerly boundary of  that  parcel
to  the  eastern  boundary  of  the  parcel  identified as District 200,
Section 579, Block 3, Lot 1; thence northward along the easterly side of
that parcel, comprising part of the eastern bank of  the  Carmans  River
also  known as Upper Lake, to the southwest corner of the parcel identi-
fied as District 200, Section 548, Block 2,  Lot  5.1;  thence  eastward
along  the  southern  boundary  of  that parcel to its southeast corner;

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thence eastward across County Route 21  to  its  easterly  side;  thence
northward  along  the easterly boundary of County Route 21 to the south-
west corner of the  Suffolk  County  Nature  Preserve  parcel  known  as
Warbler  Woods and identified as District 200, Section 551, Block 1, Lot
4; thence generally eastward along the southerly boundary of the Warbler
Woods parcel and then southward along the westerly boundary of an exten-
sion of that parcel's southerly boundary to the southeast corner of  the
southern  terminus  of Harold Road; thence generally westward, southward
and westward in  a  counter-clockwise  direction  along  the  northerly,
westerly, northerly and westerly boundaries of the Suffolk County Nature
Preserve  parcel  known  as  Fox  Lair,  and identified as District 200,
Section 580, Block 3, Lot 24.2, to the northwest corner  of  the  parcel
Suffolk  County  Water  Authority  parcel  identified  as  District 200,
Section 580, Block 3, Lot 24.6; thence southward, eastward and southward
along the westerly boundary and southerly  boundaries  of  that  Suffolk
County  Water Authority parcel to Main Street; thence eastward along the
north side of Main Street to the southeast corner of said Suffolk County
Water Authority parcel to its southeast corner; thence  northward  along
the  easterly boundary of that parcel to the southwest property boundary
of the Suffolk County Nature Preserve parcel known as Fox Lair and iden-
tified as District 200, Section 580, Block 3, Lot 24.2, thence generally
eastward, southward, eastward, northward and eastward along the souther-
ly boundaries of said parcel and eastward along the  southerly  boundary
of the Suffolk County Nature Preserve parcel identified as District 200,
Section 583, Block 1, Lot 4.1, to the west side of the unimproved north-
south  oriented  road  known  variously as Smith Road, Longwood Road and
Private Road; thence southward along the westerly boundary of Smith Road
to the north side of the Long Island Expressway; thence  westward  along
the  northerly  boundary of the Long Island Expressway to the south side
of Main Street in Yaphank; thence westward along the southerly  boundary
of Main Street in Yaphank to the westernmost extent along Main Street of
the  Southaven  County Park boundary; thence westward across County Road
21 to the western boundary of the County Road  21  right-of-way;  thence
southward  along the western boundary of the County Road 21 right-of-way
to the northerly side of the parcel identified as District 200,  Section
611, Block 3, Lot 16, comprising the northerly bank of the Carmans River
known  as  Lower  Lake; thence westward along the northerly side of that
property to the southwest corner of the parcel  identified  as  District
200,  Section  612,  Block 4, Lot 1; thence northward along the westerly
boundary of that parcel to the southerly side of County Route  21  known
as Main Street; thence westward along the southerly side of County Route
21 known as Main Street to the northeast corner of the parcel identified
as  District  200,  Section 612, Block 2, Lot 12; thence southward along
the easterly boundary of that parcel to  the  southeast  corner  of  the
parcel  identified as District 200, Section 612, Block 2, Lot 11; thence
westward and northwestward along the northerly and northeasterly bounda-
ries of the Town  of  Brookhaven  parcel  identified  as  District  200,
Section  611,  Block 3, Lot 9 to the south side of Mill Road, also known
as County Road 101; thence generally westward and  southward  along  the
southerly  side  of Mill Road and continuing southward along the eastern
side of Patchogue-Yaphank Road, also known as County Road  101,  to  the
southerly  side of Gerard Road; thence eastward along the southerly side
of Gerard Road to its westerly  boundary  known  as  the  map  of  Grand
Heights, filed in the offices of the Suffolk County clerk; thence south-
ward along the westerly map line of the filed map known as Grand Heights
to  the  north  side of the Long Island Expressway NYS Route 495; thence

S. 7508                            159                           A. 9508

easterly along the northerly side of  the  Long  Island  Expressway  NYS
Route  495  to  the  westerly  side  of County Route 21 known as Yaphank
Avenue; thence southward along the westerly side of  Yaphank  Avenue  to
the  south side of the Long Island Expressway; thence eastward along the
south side of the Long Island Expressway to  the  westerly  boundary  of
Southaven  County  Park,  thence  generally southward along the westerly
boundary of Southaven County Park to the northeast corner of  the  lands
of  Suffolk County identified as District 200, Section 665, Block 2, Lot
1; thence generally southward along the easterly boundary of  said  lot,
crossing  the  LIRR  and  Park Street and continuing southward along the
westerly boundary of Davenport Avenue as shown  on  the  old  filed  map
known  as  Bellhaven  Terrace;  thence  southward and eastward along the
westerly and southerly boundaries of the parcel identified  as  District
200, Section 744, Block 1, Lot 10 to the westerly boundary of the parcel
identified  as  District  200,  Section  781,  Block  1, Lot 3.1; thence
continuing southerly along the westerly boundary of that parcel  to  the
easterly  boundary  of  Gerard Road; thence southward along the easterly
boundary of Gerard Road to Victory Avenue;  thence  eastward  along  the
northerly  boundary  of Victory Avenue to a point where the west bank of
the Carmans River passes under Victory Avenue and Route 27; thence south
under Route 27 to the southerly side of Montauk Highway  also  known  as
County  Road  80;  thence  westward  along the southerly side of Montauk
Highway County Road 80, including lands owned by the United States known
as Wertheim National Wildlife Refuge (the "Refuge"), to the eastern side
of Old Stump Road; thence southward along the easterly side of Old Stump
Road to the northerly side of Beaver Dam Road; thence eastward along the
northerly side of Beaver Dam Road to  the  lands  owned  by  the  United
States  known  as  Wertheim  National  Wildlife  Refuge  (the "Refuge"),
including the Carmans River; thence generally westerly and southerly  to
the waters of Bellport Bay; thence generally easterly across the Bay and
northerly along the easterly boundary of the Refuge, including all lands
currently  part of the Refuge and any lands which may become part of the
Refuge in the future to the east side of the southern terminus of  Smith
Road;  thence  northward  along  the  easterly side of Smith Road to the
southwesterly corner of the property identified as District 200, Section
974.50, Block 1, Lot 11; thence eastward, northward and  westward  in  a
counter-clockwise  direction  along  the  southern, eastern and northern
boundaries of that property to the easterly side of Smith  Road;  thence
northward along the easterly side of Smith Road to the northerly side of
Montauk Highway County Road 80; thence northeasterly to the southwester-
ly corner of the property identified as District 200, Section 849, Block
2,  Lot 2; thence eastward along the northerly boundary of Montauk High-
way to the southeasterly corner of the property identified  as  District
200,  Section 850, Block 3, Lot 8; thence northward to the northeasterly
corner of that parcel, including all lands owned by  the  United  States
known  as  Wertheim  National Wildlife Refuge (the "Refuge") at any time
between June 1, 1993 and the present, and any  lands  which  may  become
part  of  the  Refuge in the future; thence northwestward across Sunrise
Highway (NYS Route 27) to the southwesterly corner of the property iden-
tified as District 200, Section 850, Block 2, Lot  1;  thence  northward
along the westerly boundary of that parcel across to the northerly boun-
dary  of Victory Avenue; thence westward along the northerly boundary of
Victory Avenue to the westerly boundary of River Road; thence  northward
along  the westerly boundary of River Road to the north side of the Long
Island Rail Road right-of-way; thence easterly along the northerly  side
of  the  Long Island Rail Road right-of-way to the north side of Morich-

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es-Middle Island Road; thence generally northward and westward along the
northerly side of Moriches-Middle Island Road to the northerly  side  of
the Long Island Expressway; thence westward along the northerly boundary
of  the  Long Island Expressway to the southeasterly corner of the Long-
wood Greenbelt  property  (the  property  identified  as  District  200,
Section  583,  Block  2,  Lot  1.1); thence northward along the easterly
boundary of the Longwood Greenbelt property  to  its  northeast  corner;
thence  eastward  to  the  southwesterly corner of the property known as
District 200, Section 552, Block 1, Lot 8; thence  generally  northeast-
ward  along the easterly boundary of the property identified as District
200, Section 552, Block 1, Lot 1.7 to the northeasterly corner  of  that
parcel;  thence  eastward  along the southerly boundaries of the parcels
identified as District 200, Section 504, Block 1, Lot  8,  and  District
200,  Section  504,  Block  1,  Lot  11, to the westerly boundary of the
William Floyd Parkway (County Route  46);  thence  northward  along  the
westerly  side  of  County  Route 46 to a point 2000 (two thousand) feet
south of the southern bank of the Peconic River crossing of County Route
46; thence generally southeastward along a line parallel  to,  and  2000
(two  thousand)  feet  generally south or southwest of, and parallel to,
the southernmost bank of the Peconic River to a point where the  Peconic
River  crosses  the  unpaved,  unnamed, north-south firebreak and patrol
road on the eastern half of the Brookhaven National Laboratory property;
thence southward and southwestward along the easterly and  southeasterly
boundaries  of  the  unpaved,  unnamed, north-south firebreak and patrol
road starting on the eastern half of the Brookhaven National  Laboratory
property  to the Brookhaven National Laboratory road known as Brookhaven
Avenue; thence due westward along a  straight  line  to  the  Brookhaven
National  Laboratory  road  known  as  Princeton Avenue; thence westward
along the southerly boundary of Princeton Avenue to the unnamed  Labora-
tory road which diverts southwest in the vicinity of the Laboratory gate
house;  thence  southwestward  along  the  southerly side of the unnamed
Laboratory road just described to  County  Route  46;  thence  southward
along  the  easterly  side  of  County Route 46 to NYS Route 495; thence
eastward along the northerly boundary of NYS Route 495 to  County  Route
111;  thence  southeastward along the northerly boundary of County Route
111 to NYS Route 27 (Sunrise Highway); thence generally southward across
NYS Route 27 to the westernmost extent along NYS Route 27 of  the  unde-
veloped  portion (as of June 1, 1993) of the parcel assemblage comprised
of those parcels identified as District 200, Section 594, Block 2, Lot 4
and District 900, Section 325, Block 1, Lot 41.2; thence southward along
the westerly boundary of the undeveloped portion (as of June 1, 1993) of
that parcel assemblage to County Route 71  (Old  Country  Road);  thence
eastward  along  the northerly boundary of County Route 71 to the south-
eastern corner of the Suffolk County Nature  Preserve  lands  which  run
from NYS Route 27 south to County Route 111 and which adjoin the easter-
ly side of the preceding assemblage; thence northward along the easterly
boundary of that Suffolk County Nature Preserve assemblage (crossing the
County  Route  111  right of way) to NYS Route 27; thence eastward along
the southerly boundary of NYS Route 27  to  the  westerly  end  of  19th
Street  as shown in the old filed map contained within the tax map iden-
tified as District 900, Section 276, Block 2; thence southward along the
westerly boundary of that old filed map (shown in District 900, Sections
276, 302, 303, 327, and 328), and coterminous with the westerly side  of
those  parcels  along  the westerly side of Oishei Road, to County Route
71; thence eastward along the northerly boundary of County Route  71  to
the  southeasterly  corner  of  the  parcel  identified as District 900,

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Section 328, Block 2, Lot 19; thence northward along the easterly bound-
ary of that old filed map surrounding Oishei Road, and coterminous  with
the  easterly  side  of  those parcels along the easterly side of Oishei
Road, to a point along that line due west of the northwesterly corner of
the  parcel  containing  the  Suffolk  County  facilities  identified as
District 900, Section 331, Block 1, Lot 1; thence due eastward  along  a
straight  line  to the northwesterly corner of that parcel; thence east-
ward along the northerly boundary of that parcel  to  its  northeasterly
corner  shown  in District 900, Section 307; thence due eastward along a
straight line to Summit Boulevard; thence southward along  the  westerly
side  of  Summit Boulevard to County Route 71; thence eastward along the
northerly side of County Route 71, excluding all parcels  abutting  that
road  which  are  developed  as of June 1, 1993, to the Long Island Rail
Road tracks; thence eastward along the northerly boundary  of  the  Long
Island  Rail Road tracks to County Route 31 (Old Riverhead Road); thence
northward along the westerly boundary of County Route 31 to  that  point
opposite  the point along the easterly side of County Route 31 (north of
the Stewart Avenue intersection) at which the undeveloped portion (as of
June 1, 1993) of the Suffolk County Airport (Gabreski  Airport)  occurs;
thence  generally northward, eastward and southward around the westerly,
northerly and easterly boundaries of the undeveloped portion (as of June
1, 1993) of the airport property (excluding from the  Core  Preservation
Area  those  portions  of the airport property which are occupied by the
runways, their associated maintenance areas, and those areas  identified
for future use in the Suffolk County Airport Master Plan approved by the
County  Legislature)  to  the Long Island Rail Road tracks (including in
the Core Preservation Area those portions of the airport property  which
are adjacent to the Quogue Wildlife Refuge's westerly boundary and which
are in their natural state); thence eastward along the northerly bounda-
ry  of  the  Long Island Rail Road tracks to the southeasterly corner of
the Town of Southampton parcel identified as District  902,  Section  1,
Block  1,  Lot  22.1;  thence generally northward and eastward along the
easterly border of that parcel and the Town of  Southampton  parcels  to
the  immediate  north  identified as District 900, Section 313, Block 1,
Lot 42.1 and District 900, Section 287, Block  1,  Lot  1.55  to  County
Route  104; thence northward along the westerly boundary of County Route
104 to a point 1000 (one thousand)  feet  southward  of  NYS  Route  27;
thence  eastward  along a line parallel to, and 1000 (one thousand) feet
south of, NYS Route 27, to the westerly boundary of the  parcel  identi-
fied  as  District  900,  Section  252, Block 1, Lot 1; thence southward
along the westerly boundary of that parcel to the Long Island Rail  Road
tracks;  thence eastward along the northerly boundary of the Long Island
Rail Road tracks to Montauk Highway; thence eastward along the northerly
boundary of Montauk Highway to that point where the boundary  of  Sears-
Bellows  County Park heads northward along the eastern side of the Munns
Pond portion; thence northward along the easterly boundary of Sears-Bel-
lows County Park, to NYS Route 27; thence eastward along  the  northerly
boundary  of  NYS  Route  27  to  NYS Route 24 (Riverhead - Hampton Bays
Road); thence generally northwestward and westward along  the  southwes-
terly boundary of NYS Route 24 to the easternmost extent along NYS Route
24  of  the  Suffolk County Parkland known as Flanders or Hubbard County
Park; thence generally northward,  westward,  and  southward  along  the
easterly,  northerly,  and  westerly  boundaries  of Flanders or Hubbard
County Park, including all adjacent or contiguous  undeveloped  Town  of
Southampton  parks,  preserves,  open space areas, or reserved areas, to
NYS Route 24; thence westward along the southerly boundary of NYS  Route

S. 7508                            162                           A. 9508

24  to  Pleasure  Drive; thence southward along the easterly boundary of
Pleasure Drive a distance of 2000 (two  thousand)  feet,  excluding  all
parcels  abutting  that  road  which  are  developed as of June 1, 1993;
thence  generally  westward  along  a  straight line to the southernmost
extent of the NYS David Sarnoff Preserve along the  westerly  boundaries
of  the parcels on the westerly side of Brookhaven Avenue; thence gener-
ally northward and westward along the easterly and northerly boundary of
the NYS David Sarnoff Pine Barrens Preserve, crossing County Routes  105
and  104, to County Route 63 (Riverhead-Moriches Road); thence generally
westward and northward along the northerly boundary of the Suffolk Coun-
ty Cranberry Bog County Nature  Preserve  to  County  Route  51;  thence
southwesterly along the westerly side of County Route 51 to the boundary
of  the Cranberry Bog County Nature Preserve; thence westward and north-
ward along the northeasterly boundary of  Cranberry  Bog  County  Nature
Preserve  to  County  Route  94  (also  known as NYS Route 24, or Nugent
Drive); thence eastward along the northerly side of County Route  94  to
the County Route 94A bridge; thence northward along the westerly side of
the  County Route 94A bridge to the Riverhead-Southampton border; thence
westward along the Riverhead-Southampton border, and the  Riverhead-Bro-
okhaven  Border,  to  the  Forge Road Bridge; thence northward along the
westerly boundary of  the  Forge  Road  Bridge  to  Forge  Road;  thence
northwestward  along  the  westerly  boundary  of Forge Road to the Long
Island Rail Road tracks; thence northward along the westerly boundary of
Forge Road (unpaved) to the intersection of NYS Route 25 and River Road;
thence westward along the southerly boundary of River  Road  to  Edwards
Avenue;  thence  westward  along  the  southerly  boundary of River Road
(Grumman Boulevard or Swan Pond Road) to the southeast  corner  of  that
parcel  containing Conoe (or Canoe) Lake and identified as District 600,
Section 137, Block 1, Lot 1; thence northward, westward,  and  southward
along  the  borders  of  that parcel containing Conoe (or Canoe) Lake to
River Road (Grumman Boulevard);  thence  westward  along  the  northerly
boundary  of  Grumman  Boulevard  to  the southeasternmost corner of the
undeveloped  portion  (as  of  June  1,  1993)  of  the  United   States
Navy/Grumman  Corporation  property located on the north side of Grumman
Boulevard and adjacent to the Grumman entrance known as the South  Gate;
thence  due north along the easternmost edge of that undeveloped portion
(as of June 1, 1993) of the United States Navy/Grumman Corporation prop-
erty to NYS Route 25; thence along a straight line to the northerly side
of NYS Route 25 to a point occupied by the  southeasternmost  corner  of
the  parcel  assemblage  comprised of District 600, Section 75, Block 3,
Lot 10.1, and District 600, Section 96, Block 1, Lot 14,  and  otherwise
known as Camp Wauwepex; thence northward, westward, and generally south-
ward along the easterly, northerly, and generally westerly boundaries of
the  Camp Wauwepex assemblage to NYS Route 25; thence westward along the
northerly side of NYS Route 25 to Montauk  Trail;  thence  northeastward
along  the northwesterly side of Montauk Trail to Panamoka Trail; thence
northward along the westerly  side  of  Panamoka  Trail,  excluding  all
parcels  abutting  that  road which are developed as of June 1, 1993, to
Matinecock Trail; thence westward along the southerly side of Matinecock
Trail to the easterly boundary of Brookhaven State Park; thence general-
ly northward along the  easterly  boundary  of  Brookhaven  State  Park,
including  all  adjacent  or  contiguous  undeveloped Town of Brookhaven
parks, preserves, open space areas, or reserved  areas,  to  its  inter-
section with NYS Route 25A; [thence westward along the southerly side of
NYS  Route  25A  to  the  northeast  corner of the Shoreham-Wading River
school district property;] THENCE EASTWARD ALONG THE SOUTHERLY  BOUNDARY

S. 7508                            163                           A. 9508

OF  ROUTE 25A TO A POINT DUE SOUTH OF THE SOUTHEAST CORNER OF THE PARCEL
IDENTIFIED AS DISTRICT 200,  SECTION  128,  BLOCK  1,  LOT  3.1;  THENCE
NORTHEASTWARD,  NORTHWARD AND WESTWARD ALONG THE SOUTHERLY, EASTERLY AND
NORTHERLY  SIDES  OF THE PARCEL IDENTIFIED AS DISTRICT 200, SECTION 128,
BLOCK 1, LOT 1 TO THE SOUTHEAST  CORNER  OF  THE  PARCEL  IDENTIFIED  AS
DISTRICT  200,  SECTION 82, BLOCK 1, LOT 5.2; THENCE NORTHWARD ALONG THE
EAST SIDE OF THIS PARCEL TO ITS INTERSECTION  WITH  THE  SOUTH  SIDE  OF
NORTH  COUNTRY ROAD; THENCE NORTHWARD CROSSING NORTH COUNTRY ROAD TO ITS
NORTHERLY SIDE; THENCE EASTWARD ALONG THE NORTHERLY SIDE OF NORTH  COUN-
TRY  ROAD TO THE BROOKHAVEN TOWN-RIVERHEAD TOWN LINE; THENCE IN A GENER-
ALLY NORTHWESTWARD DIRECTION ALONG SAID TOWN LINE TO A POINT  IN  WADING
RIVER CREEK WITH THE COORDINATES 40.96225 LATITUDE AND -72.863633 LONGI-
TUDE; THENCE WESTWARD A DISTANCE OF APPROXIMATELY 90 FEET TO THE EASTER-
LY  SIDE  OF LILCO ROAD; THENCE SOUTHWARD ALONG LILCO ROAD TO ITS INTER-
SECTION WITH THE NORTH SIDE OF NORTH COUNTRY ROAD; THENCE WESTWARD ALONG
THE NORTH SIDE OF NORTH COUNTRY ROAD TO  THE  SOUTHEAST  CORNER  OF  THE
PARCEL IDENTIFIED AS DISTRICT 200, SECTION 39, BLOCK 1, LOT 2; THENCE IN
A  NORTHWARD  AND  WESTWARD  DIRECTION  ALONG THE EASTERLY AND NORTHERLY
SIDES OF SAID PARCEL TO ITS NORTHWEST CORNER; THENCE NORTHWARD ALONG THE
WESTERLY BOUNDARY OF THE PARCEL IDENTIFIED AS DISTRICT 200, SECTION  83,
BLOCK  1,  LOT  1.4  TO  ITS  NORTHWEST CORNER AND THE SHORELINE OF LONG
ISLAND SOUND; THENCE WESTWARD /ALONG THE NORTHERLY SIDE  OF  THE  PARCEL
IDENTIFIED  AS DISTRICT 200, SECTION 83, BLOCK 1, LOT 1.4 AND CONTINUING
IN A WESTWARD DIRECTION ALONG THE NORTHERLY SIDE OF THE  PARCEL  IDENTI-
FIED  AS  DISTRICT  200,  SECTION 39, BLOCK 1, LOT 1.2 AND THE SOUTHERLY
EXTENT OF THE LONG ISLAND SOUND TO THE NORTHWEST CORNER OF THE  PROPERTY
IDENTIFIED  AS DISTRICT 200, SECTION 39, BLOCK 1, LOT 1.2; THENCE SOUTH-
WARD ALONG THE WESTERLY BOUNDARY OF SAID PROPERTY TO NORTH COUNTRY ROAD;
THENCE WEST ALONG THE SOUTHERLY BOUNDARY OF NORTH COUNTRY  ROAD  TO  THE
NORTHWESTERN  CORNER OF THE PROPERTY IDENTIFIED AS DISTRICT 200, SECTION
82, BLOCK 1, LOT 1.1; THENCE SOUTH ALONG THE WESTERLY BOUNDARY  OF  SAID
PROPERTY  AND  THE  WESTERLY  BOUNDARY  OF  THE  PROPERTY  IDENTIFIED AS
DISTRICT 200, SECTION 39, BLOCK 1, LOT 1.2 TO THE  NORTHWEST  CORNER  OF
PROPERTY  IDENTIFIED  AS  DISTRICT  200,  SECTION  82, BLOCK 1, LOT 5.1;
THENCE SOUTHWARD ALONG THE WESTERLY BOUNDARY OF SAID PROPERTY IN A  LINE
TO  THE NORTHEAST CORNER OF PROPERTY IDENTIFIED AS DISTRICT 200, SECTION
105, BLOCK 3, LOT 5; THENCE SOUTHWARD ALONG  THE  EASTERLY  BOUNDARY  OF
SAID  PROPERTY TO THE NORTH SIDE OF ROUTE 25A; THENCE EASTWARD ALONG THE
NORTH SIDE OF ROUTE 25A TO A  POINT  DIRECTLY  NORTH  OF  THE  NORTHEAST
CORNER  OF  THE  SHOREHAM-WADING  RIVER SCHOOL DISTRICT PROPERTY; THENCE
SOUTHWARD, CROSSING ROUTE 25A TO ITS SOUTHERLY BOUNDARY AND  THE  NORTH-
EAST  CORNER  OF  THE  SHOREHAM-WADING  RIVER  SCHOOL DISTRICT PROPERTY;
thence southward, westward, and northward along the easterly, southerly,
and westerly boundaries of the  Shoreham-Wading  River  school  district
property  to  NYS Route 25A; thence westward along the southerly side of
NYS Route 25A to County Route 46; thence southward  along  the  easterly
side of County Route 46 to its intersection with the Suffolk County Pine
Trail  Nature  Preserve; thence westward along the northerly boundary of
the Suffolk County Pine Trail Nature  Preserve  where  the  Preserve  is
adjacent to developed parcels or parcels in agricultural or horticultur-
al  use,  or  along a line parallel to, and 100 (one hundred) feet north
of, the Preserve where the Preserve is adjacent  to  parcels  which  are
undeveloped as of June 1, 1993, to the southeastern corner of the parcel
west of Woodlots Road and identified as District 200, Section 291, Block
1, Lot 14.1; thence northward and westward along the easterly and north-
erly  boundaries  of  that parcel to Whiskey Road; thence westward along

S. 7508                            164                           A. 9508

the southerly side of Whiskey Road to Wading River Hollow  Road;  thence
northward  along  the  westerly  side of Wading River Hollow Road to the
boundary of the NYS Rocky Point Land; thence generally  northward  along
the  easterly  boundary of the NYS Rocky Point Land, including all adja-
cent or contiguous undeveloped Town of Brookhaven parks, preserves, open
space areas, or reserved areas, to NYS Route 25A; thence westward  along
the  southerly  side  of NYS Route 25A, excluding those parcels abutting
that road which are developed as of June 1, 1993, and those lands  iden-
tified for the reroute of Route 25A by the NYS Department of Transporta-
tion,  to  the  northeastern corner of the parcel identified as District
200, Section 102, Block 3, Lot 1.4; thence southward along the  westerly
boundary  of  that  parcel  to  the  parcel  identified as District 200,
Section 102, Block 3, Lot 1.6; thence generally westward  and  southward
along the westerly boundaries of that parcel and the adjoining southerly
parcel  identified as District 200, Section 102, Block 3, Lot 1.5 to the
boundary of the NYS Rocky Point Land; thence westward along the norther-
ly boundary of the NYS Rocky Point  Land  to  County  Route  21;  thence
generally  westward  along a straight line across County Route 21 to the
northernmost extent along County Route 21 of the NYS Rocky  Point  Land;
thence  generally westward along the generally northerly boundary of the
NYS Rocky Point Land to the point or place of beginning,  and  excluding
the area defined as beginning at a point where the southerly boundary of
NYS  Route  25  meets the easterly side of the Suffolk County Pine Trail
Nature Preserve; thence southeastward along the  easterly  side  of  the
Suffolk County Pine Trail Nature Preserve where the Preserve is adjacent
to developed parcels, or along a line parallel to, and 100 (one hundred)
feet  east  of,  the  Preserve where the Preserve is adjacent to parcels
which are undeveloped as of June 1, 1993, to the  Long  Island  Lighting
Company  high  voltage  transmission  lines;  thence northward along the
westerly side of the Long Island Lighting Company  high  voltage  trans-
mission  lines to NYS Route 25; thence westward along the southerly side
of NYS Route 25 to the point or place of beginning;
and excluding two distinct areas described as follows: Area One  is  the
area defined as beginning at a point where the southerly boundary of NYS
Route 25 meets the easterly side of the Suffolk County Pine Trail Nature
Preserve;  thence  southeastward  along the easterly side of the Suffolk
County Pine Trail Nature Preserve where  the  Preserve  is  adjacent  to
developed  parcels,  or  along a line parallel to, and 100 (one hundred)
feet east of, the Preserve where the Preserve  is  adjacent  to  parcels
which  are  undeveloped  as of June 1, 1993, to the Long Island Lighting
Company high voltage transmission  lines;  thence  northward  along  the
westerly  side  of  the Long Island Lighting Company high voltage trans-
mission lines to NYS Route 25; thence westward along the southerly  side
of NYS Route 25 to the point or place of beginning; Area Two is the area
defined as beginning at the northwest corner of the parcel identified as
District  200,  Section 552, Block 1, Lot 3; thence eastward, southwest-
ward and generally northward  along  the  northerly,  southeasterly  and
westerly  boundaries  of  that  parcel,  containing the sewage treatment
facility known as the Dorade facility, to the point of  beginning;  Area
three  is  defined as the parcel identified as district 200, section 82,
block 1, lot 3.
  § 2. The town of Brookhaven, the county of Suffolk,  and  the  Central
Pine Barrens joint planning and policy commission shall compile a report
providing  an  assessment of properties that would be suitable for solar
projects including an inventory of specific parcels within the  town  of
Brookhaven  that  minimize  the  need to utilize undisturbed open space.

S. 7508                            165                           A. 9508

Such report shall be submitted to the governor no later than January  1,
2020.
  §  3. The definitions of "central pine barrens" and "core preservation
area" of section 57-0107 of the environmental conservation law shall  be
amended  to  include the property described as thence eastward along the
northerly boundary of Moriches-Middle Island Road to a point  due  north
of  the easterly boundary of Cranford Boulevard; thence southward across
Moriches-Middle Island Road and along the easterly boundary of  Cranford
Boulevard  to  the  south-western  corner  of the property identified as
District 200, Section 645, Block 3, Lot 29.1; thence southeastward along
the southerly boundary of said property to its intersection with proper-
ty identified as District 200, Section  712,  Block  9,  Lot  1;  thence
generally  southward along the westerly boundary of said property to its
intersection with the northerly side of the eastward extension of  Grove
Drive;  thence  southward crossing Grove Drive to its south side; thence
westward along the southerly boundary of the Grove Drive road  extension
to  the  northwestern corner of the property identified as District 200,
Section 749, Block 3, Lot 41.1; and comprised of parcels  owned  by  the
county  of  Suffolk  and the town of Brookhaven; thence southward to the
southwestern corner of property identified as District 200, Section 749,
Block 3, Lot 43; thence eastward along the southerly  boundary  of  said
property  to  the  west  side of Lambert Avenue; thence crossing Lambert
Avenue to its easterly side; thence southward along the easterly bounda-
ry of Lambert Avenue to the northerly boundary of  the  Sunrise  Highway
Service  Road;  thence northeastward along the northerly boundary of the
Sunrise Highway Service Road to Barnes Road; thence northward along  the
westerly  boundary of Barnes Road to the northeastern corner of property
identified as District 200, Section 750, Block 3, Lot 40.2; thence west-
ward along the northerly boundary of said property to the property iden-
tified as District 200, Section 713, Block 1,  Lot  2;  thence  westward
along  the  northerly  boundary  of property identified as District 200,
Section 713, Block 1, Lot 1; thence northward along the westerly side of
Weeks Avenue to  the  northeastern  corner  of  property  identified  as
District  200,  Section  713,  Block 3, Lot 1; thence westward along the
northerly boundary of said property to Michigan Avenue; thence northward
along the easterly boundary of Michigan Ave  to  Moriches-Middle  Island
Road,  comprising  of  all  lands  owned  by  the Town of Brookhaven and
Suffolk county therein and excluding all privately owned real property.
  § 4. This act shall take effect January 1, 2019; provided that if  the
provisions  of this act establishing a new description and boundaries of
the Central Pine Barrens Area or the core preservation area  removes  or
excludes  any  of the lands of the Central Pine Barrens Area or the core
preservation area as such lands are described and bounded in chapter 267
of the laws of 2015, and/or protections established and/or  provided  by
such  act,  this act shall be deemed repealed and of no force and effect
and chapter 267 of the laws of 2015  shall  remain  in  full  force  and
effect.   The state legislature shall notify the legislative bill draft-
ing commission of any such decrease and resulting repeal in  order  that
the  commission  may maintain an accurate and timely effective data base
of the official text of the laws of the state of New York in furtherance
of effectuating the provisions of section 44 of the legislative law  and
section 70-b of the public officers law.

                                 PART DD

S. 7508                            166                           A. 9508

  Section  1.  Expenditures  of  moneys appropriated in a chapter of the
laws of 2018 to the department  of  agriculture  and  markets  from  the
special  revenue  funds-other/state  operations,  miscellaneous  special
revenue fund-339,  public  service  account  shall  be  subject  to  the
provisions  of  this section. Notwithstanding any other provision of law
to the contrary, direct and indirect expenses relating to the department
of  agriculture  and  markets'  participation  in   general   ratemaking
proceedings  pursuant to section 65 of the public service law or certif-
ication proceedings pursuant to article 7 or 10 of  the  public  service
law, shall be deemed expenses of the department of public service within
the  meaning  of  section  18-a of the public service law. No later than
August 15, 2019, the commissioner of the department of  agriculture  and
markets  shall submit an accounting of such expenses, including, but not
limited to, expenses in the 2018 -- 2019 fiscal year  for  personal  and
non-personal  services  and  fringe benefits, to the chair of the public
service commission for the chair's review pursuant to the provisions  of
section 18-a of the public service law.
  §  2.  Expenditures of moneys appropriated in a chapter of the laws of
2018 to  the  department  of  state  from  the  special  revenue  funds-
other/state  operations,  miscellaneous special revenue fund-339, public
service account shall be subject to  the  provisions  of  this  section.
Notwithstanding  any  other provision of law to the contrary, direct and
indirect expenses relating  to  the  activities  of  the  department  of
state's  utility  intervention unit pursuant to subdivision 4 of section
94-a of the executive law, including, but not limited  to  participation
in  general  ratemaking proceedings pursuant to section 65 of the public
service law or certification proceedings pursuant to article 7 or 10  of
the  public  service  law, shall be deemed expenses of the department of
public service within the meaning of section 18-a of the public  service
law.  No later than August 15, 2019, the secretary of state shall submit
an  accounting of such expenses, including, but not limited to, expenses
in the 2018 -- 2019 fiscal year for personal and  non-personal  services
and  fringe  benefits, to the chair of the public service commission for
the chair's review pursuant to the provisions of  section  18-a  of  the
public service law.
  §  3.  Expenditures of moneys appropriated in a chapter of the laws of
2018 to the office of parks, recreation and historic  preservation  from
the  special revenue funds-other/state operations, miscellaneous special
revenue fund-339,  public  service  account  shall  be  subject  to  the
provisions  of  this section. Notwithstanding any other provision of law
to the contrary, direct and indirect expenses relating to the office  of
parks,  recreation  and historic preservation's participation in general
ratemaking proceedings pursuant to section 65 of the public service  law
or  certification  proceedings pursuant to article 7 or 10 of the public
service law, shall be  deemed  expenses  of  the  department  of  public
service within the meaning of section 18-a of the public service law. No
later  than  August  15,  2019, the commissioner of the office of parks,
recreation and historic preservation shall submit an accounting of  such
expenses,  including,  but  not limited to, expenses in the 2018 -- 2019
fiscal year for personal and non-personal services and fringe  benefits,
to  the  chair  of  the public service commission for the chair's review
pursuant to the provisions of section 18-a of the public service law.
  § 4. Expenditures of moneys appropriated in a chapter of the  laws  of
2018  to  the  department of environmental conservation from the special
revenue funds-other/state operations, environmental conservation special
revenue fund-301, utility  environmental  regulation  account  shall  be

S. 7508                            167                           A. 9508

subject  to  the  provisions  of this section. Notwithstanding any other
provision of law to the contrary, direct and indirect expenses  relating
to the department of environmental conservation's participation in state
energy  policy  proceedings,  or  certification  proceedings pursuant to
article 7 or 10 of the public service law, shall be deemed  expenses  of
the  department  of public service within the meaning of section 18-a of
the public service law. No later than August 15, 2019, the  commissioner
of the department of environmental conservation shall submit an account-
ing  of  such  expenses,  including, but not limited to, expenses in the
2018 -- 2019 fiscal year for  personal  and  non-personal  services  and
fringe  benefits,  to the chair of the public service commission for the
chair's review pursuant to the provisions of section 18-a of the  public
service law.
  §  5. Notwithstanding any other law, rule or regulation to the contra-
ry, expenses of  the  department  of  health  public  service  education
program  incurred  pursuant  to appropriations from the cable television
account of the state miscellaneous special revenue funds shall be deemed
expenses of the department of public service. No later than  August  15,
2019,  the  commissioner  of  the  department  of health shall submit an
accounting of expenses in the 2018 -- 2019 fiscal year to the  chair  of
the  public  service  commission  for the chair's review pursuant to the
provisions of section 217 of the public service law.
  § 6. Any expense deemed to be expenses of  the  department  of  public
service  pursuant  to sections one through four of this act shall not be
recovered through assessments imposed  upon  telephone  corporations  as
defined in subdivision 17 of section 2 of the public service law.
  §  7.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2018 and  shall
be deemed repealed April 1, 2019.

                                 PART EE

  Section  1.  Expenditures  of  moneys  by  the  New  York state energy
research and development authority for  services  and  expenses  of  the
energy   research,  development  and  demonstration  program,  including
grants, the energy policy and planning program, the zero emissions vehi-
cle and electric vehicle rebate program, and the Fuel NY  program  shall
be  subject  to  the  provisions  of  this  section. Notwithstanding the
provisions of subdivision 4-a of section 18-a of the public service law,
all moneys committed or expended in an amount not to exceed  $19,700,000
shall  be  reimbursed by assessment against gas corporations, as defined
in subdivision 11 of section 2 of the public service  law  and  electric
corporations  as  defined  in  subdivision 13 of section 2 of the public
service law, where such gas corporations and electric corporations  have
gross  revenues from intrastate utility operations in excess of $500,000
in the preceding calendar year,  and  the  total  amount  which  may  be
charged  to  any  gas corporation and any electric corporation shall not
exceed one cent per one thousand cubic feet of gas sold  and  .010  cent
per  kilowatt-hour  of  electricity  sold  by such corporations in their
intrastate utility operations in calendar year 2016. Such amounts  shall
be  excluded  from the general assessment provisions of subdivision 2 of
section 18-a of the public service law. The chair of the public  service
commission  shall  bill  such  gas and/or electric corporations for such
amounts on or before August 10, 2018 and such amounts shall be  paid  to
the  New  York  state  energy  research  and development authority on or
before September 10, 2018. Upon  receipt,  the  New  York  state  energy

S. 7508                            168                           A. 9508

research and development authority shall deposit such funds in the ener-
gy  research  and  development  operating  fund  established pursuant to
section 1859 of the public authorities law. The New  York  state  energy
research  and  development  authority is authorized and directed to: (1)
transfer $1 million to the state general fund for services and  expenses
of  the  department of environmental conservation, $150,000 to the state
general fund for services and expenses of the department of  agriculture
and  markets, and $825,000 to the University of Rochester laboratory for
laser energetics from the funds received; and (2)  commencing  in  2016,
provide  to  the chair of the public service commission and the director
of the budget and the chairs and secretaries of the  legislative  fiscal
committees,  on or before August first of each year, an itemized record,
certified by the president and chief executive officer of the authority,
or his or her designee, detailing any and all expenditures  and  commit-
ments  ascribable  to  moneys received as a result of this assessment by
the chair of the department of public service pursuant to  section  18-a
of  the public service law.  This itemized record shall include an item-
ized breakdown of the programs being funded  by  this  section  and  the
amount  committed  to each program.   The authority shall not commit for
any expenditure, any moneys derived from the assessment provided for  in
this  section,  until  the chair of such authority shall have submitted,
and the director of the budget  shall  have  approved,  a  comprehensive
financial  plan encompassing all moneys available to and all anticipated
commitments and expenditures by such authority from any source  for  the
operations  of  such  authority.    Copies of the approved comprehensive
financial plan shall be immediately submitted by the chair to the chairs
and secretaries of the legislative fiscal committees.   Any such  amount
not  committed by such authority to contracts or contracts to be awarded
or otherwise expended by the authority during the fiscal year  shall  be
refunded  by such authority on a pro-rata basis to such gas and/or elec-
tric corporations, in a manner to be determined  by  the  department  of
public  service,  and any refund amounts must be explicitly lined out in
the itemized record described above.
  § 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2018.

                                 PART FF

  Section  1.  Paragraph  (a)  of  subdivision 17 of section 1005 of the
public authorities law, as amended by chapter 494 of the laws  of  2011,
is amended to read as follows:
  (a)  As  deemed  feasible  and  advisable  by the trustees, to finance
[and], design, develop, construct,  implement,  provide  and  administer
energy-related  projects,  programs  and services for any public entity,
any independent not-for-profit institution of  higher  education  within
the  state,  [and]  any  recipient  of [the] economic development power,
expansion power, replacement power, preservation power, high load factor
power, municipal distribution agency power, [power  for  jobs,  and]  OR
recharge New York power [programs administered] ALLOCATED by the author-
ity,  AND  ANY  PARTY  LOCATED  WITHIN THE STATE UNDER CONTRACT WITH THE
AUTHORITY TO PURCHASE POWER FROM THE AUTHORITY PURSUANT TO THIS TITLE OR
ANY OTHER LAW.  In  establishing  and  providing  high  performance  and
sustainable  building  programs and services authorized by this subdivi-
sion, the authority is  authorized  to  consult  standards,  guidelines,
rating  systems,  and/or criteria established or adopted by other organ-
izations, including but not limited to the United States green  building

S. 7508                            169                           A. 9508

council  under  its leadership in energy and environmental design (LEED)
programs, the green building initiative's green  globes  rating  system,
and the American National Standards Institute. The source of any financ-
ing  and/or  loans  provided  by  the authority for the purposes of this
subdivision may be the proceeds of notes issued pursuant to section  one
thousand  nine-a of this title, the proceeds of bonds issued pursuant to
section one thousand ten of this title, or any other available authority
funds.
  § 2. Subparagraph 2 of paragraph (b) of subdivision 17 of section 1005
of the public authorities law, as added by chapter 477 of  the  laws  of
2009  and  such  subdivision  as  renumbered by section 16 of part CC of
chapter 60 of the laws of 2011, is amended to read as follows:
  (2) "Energy-related projects,  programs  and  services"  means  ENERGY
MANAGEMENT,  DISTRIBUTION,  OR  CONTROL  PROJECTS  AND  SERVICES, ENERGY
SUPPLY SECURITY, RESILIENCY OR RELIABILITY PROJECTS AND SERVICES, ENERGY
PROCUREMENT PROGRAMS AND SERVICES FOR PUBLIC ENTITIES, energy efficiency
projects and services, clean energy technology  projects  and  services,
and high performance and sustainable building programs and services, and
the  construction, installation and/or operation of facilities or equip-
ment done in connection with any such ENERGY-RELATED projects,  programs
or services.
  § 3. Subparagraph 5 of paragraph (b) of subdivision 17 of section 1005
of  the  public  authorities law, as added by chapter 477 of the laws of
2009 and such subdivision as renumbered by section  16  of  part  CC  of
chapter 60 of the laws of 2011, is amended to read as follows:
  (5)  "Public entity" means an agency, public authority, public benefit
corporation, public corporation, municipal corporation, school district,
board of  cooperative  educational  services,  public  university,  fire
district, district corporation, or special improvement district governed
by  a  separate board of commissioners, INCLUDING AN ENTITY FORMED BY OR
UNDER CONTRACT WITH ONE OR MORE  PUBLIC  ENTITIES  FOR  THE  PURPOSE  OF
FACILITATING THE DELIVERY, IMPLEMENTATION OR MANAGEMENT OF ENERGY-RELAT-
ED PROJECTS, PROGRAMS AND SERVICES.
  § 4. This act shall take effect immediately.

                                 PART GG

  Section  1.  Section  1005 of the public authorities law is amended by
adding a new subdivision 26 to read as follows:
  26. (A) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS  TITLE,  AS
DEEMED  FEASIBLE AND ADVISABLE BY THE TRUSTEES, THE AUTHORITY IS AUTHOR-
IZED TO FINANCE, PLAN, DESIGN, ENGINEER, ACQUIRE, CONSTRUCT, OPERATE  OR
MANAGE  (COLLECTIVELY,  "DEVELOP")  THROUGHOUT  ITS AREA OF SERVICE SUCH
RENEWABLE POWER AND ENERGY GENERATING PROJECTS, AND PROCURE SUCH RENEWA-
BLE POWER, ENERGY, OR RELATED  ATTRIBUTES,  WHICH  THE  AUTHORITY  DEEMS
NECESSARY  OR  DESIRABLE  TO ASSIST THE STATE IN MEETING ANY STATE CLEAN
ENERGY STANDARD OR GOALS, AND/OR SUPPLY THE NEEDS OF ANY  PUBLIC  ENTITY
OR AUTHORITY CUSTOMER WITHIN THE STATE. THE AUTHORITY IS FURTHER AUTHOR-
IZED TO ALLOCATE AND SELL RENEWABLE POWER, ENERGY, OR RELATED ATTRIBUTES
THAT  IS  PRODUCED  BY RENEWABLE POWER AND ENERGY GENERATING PROJECTS IT
DEVELOPS, OR THAT IT PROCURES, TO ANY PUBLIC ENTITY OR AUTHORITY CUSTOM-
ER. THE AUTHORITY SHALL BE ENTITLED TO FULLY RECOVER ITS COSTS,  INCLUD-
ING  ITS ACQUISITION, FINANCE, PLANNING, CONTRACTING, CAPITAL, OPERATING
AND MAINTENANCE COSTS, FROM THE ENTITIES THAT PURCHASE RENEWABLE  POWER,
ENERGY AND RELATED ATTRIBUTES FROM THE AUTHORITY.

S. 7508                            170                           A. 9508

  (B) THE SOURCE OF ANY FINANCING AND/OR LOANS PROVIDED BY THE AUTHORITY
FOR THE PURPOSES OF THIS SUBDIVISION MAY BE THE PROCEEDS OF NOTES ISSUED
PURSUANT  TO  SECTION ONE THOUSAND NINE-A OF THIS TITLE, THE PROCEEDS OF
BONDS ISSUED PURSUANT TO SECTION ONE THOUSAND TEN OF THIS TITLE, OR  ANY
OTHER AVAILABLE AUTHORITY FUNDS.
  (C)  FOR  PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL HAVE
THE MEANINGS INDICATED IN THIS PARAGRAPH UNLESS  THE  CONTEXT  INDICATES
ANOTHER MEANING OR INTENT:
  (1)  "AUTHORITY  CUSTOMER"  MEANS  AN ENTITY LOCATED IN THE STATE THAT
PURCHASES OR IS UNDER CONTRACT TO PURCHASE  POWER  OR  ENERGY  FROM  THE
AUTHORITY.
  (2)  "PUBLIC ENTITY" HAS THE MEANING ASCRIBED TO THAT TERM BY SUBPARA-
GRAPH FIVE OF PARAGRAPH (B) OF SUBDIVISION SEVENTEEN OF THIS SECTION.
  (3) "RENEWABLE ENERGY RESOURCES" MEANS SOLAR POWER, WIND POWER, HYDRO-
ELECTRIC, AND ANY OTHER GENERATION RESOURCE AUTHORIZED BY ANY  RENEWABLE
ENERGY STANDARD ADOPTED BY THE STATE FOR THE PURPOSE OF IMPLEMENTING ANY
STATE CLEAN ENERGY STANDARD.
  (4)  "RENEWABLE  POWER  AND ENERGY GENERATING PROJECTS" MEANS PROJECTS
THAT GENERATE POWER AND ENERGY BY MEANS OF RENEWABLE  ENERGY  RESOURCES,
OR  THAT STORE AND SUPPLY POWER AND ENERGY GENERATED BY MEANS OF RENEWA-
BLE ENERGY RESOURCES, AND INCLUDE THE CONSTRUCTION, INSTALLATION  AND/OR
OPERATION  OF  ANCILLARY FACILITIES OR EQUIPMENT DONE IN CONNECTION WITH
ANY SUCH RENEWABLE  POWER  AND  ENERGY  GENERATING  PROJECTS,  PROVIDED,
HOWEVER, THAT SUCH TERM SHALL NOT INCLUDE THE AUTHORITY'S SAINT LAWRENCE
AND NIAGARA HYDROELECTRIC.
  (5) "STATE" MEANS THE STATE OF NEW YORK.
  (D) NOTHING IN THIS SUBDIVISION IS INTENDED TO LIMIT, IMPAIR OR AFFECT
THE AUTHORITY'S LEGAL AUTHORITY UNDER ANY OTHER PROVISION OF THIS TITLE.
  § 2. This act shall take effect immediately.
  § 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.
  § 3. This act shall take effect immediately  provided,  however,  that
the applicable effective date of Parts A through GG of this act shall be
as specifically set forth in the last section of such Parts.

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

    S. 7508--A                                            A. 9508--A

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

                            January 18, 2018
                               ___________

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

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

AN  ACT to amend the vehicle and traffic law and the transportation law,
  in relation to enhancing the ability of the state to enforce state and
  federal law relating to motor carriers,  commercial  drivers  and  bus
  operators and to increase penalties for violations of state law relat-
  ing  thereto  (Part A); to amend the highway law, in relation to road-
  side rest areas (Part B); to amend the transportation law, in relating
  to enhancing the ability of the state to enforce state and federal law
  relating to the safety of rail fixed  guideway  public  transportation
  systems  under the oversight of the public transportation safety board
  (Part C); to amend the public authorities law, in relation  to  agree-
  ments  for  fiber optics (Part D); to amend the transportation law, in
  relation to authorizing the department of transportation to charge one
  hundred twenty dollars for a semi-annual inspection  of  certain  for-
  profit  fleets  (Part E); to amend the highway law and the transporta-
  tion corporations law, in relation to occupancy of the state right  of
  way  for a fee; and to amend the general municipal law, in relation to
  small wireless facilities development (Part F); to amend  the  vehicle
  and  traffic law, in relation to seat belt requirements, proper safety
  restraints for children under the age of 8,  prohibiting  the  use  of
  mobile telephones and portable electronic devices by persons under the
  age  of 18, and permitting junior license holders to operate a vehicle
  in New York City; and to  amend the vehicle and traffic  law  and  the
  public officers law, in relation to authorizing political subdivisions
  and  commuter  railroads  to  establish  demonstration programs and to
  implement railroad grade crossing monitoring systems by means of photo
  devices (Part G); to amend part FF of chapter 55 of the laws  of  2017
  relating  to motor vehicles equipped with autonomous vehicle technolo-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12673-03-8

S. 7508--A                          2                         A. 9508--A

  gy, in relation to  demonstrations  and  tests;  in  relation  to  the
  submission  or reports; and in relation to extending the effectiveness
  thereof; relates to  demonstrations  and  testing  of  motor  vehicles
  equipped  with  autonomous  vehicle  technology; and to repeal section
  1226 of the vehicle and traffic law, relating to control  of  steering
  mechanisms  (Part  H);  to amend the state finance law, in relation to
  removing the authorization  for  the  OSC  to  prescribe  a  reporting
  requirement to the city of New York (Part I); to amend the vehicle and
  traffic law, in relation to establishing a pre-licensing course inter-
  net  program;  and  providing  for  the repeal of such provisions upon
  expiration thereof (Part J); to amend the vehicle and traffic law,  in
  relation  to  the  disposition  of  certain  proceeds collected by the
  commissioner of motor vehicles; to amend the  transportation  law  and
  the  tax  law,  in  relation  to  the  disposition of certain fees and
  assessments; to amend the  state  finance  law,  in  relation  to  the
  special  obligation reserve and payment account of the dedicated high-
  way and bridge trust fund; to amend the  public  authorities  law,  in
  relation  to  the  metropolitan transportation authority finance fund;
  and to amend the state finance law, in relation  to  the  metropolitan
  transportation authority financial assistance fund; to repeal subdivi-
  sion  5  of  section  317  of  the vehicle and traffic law relating to
  certain assessments charged and collected by the commissioner of motor
  vehicles; to repeal subdivision 6 of section 423-a of the vehicle  and
  traffic  law  relating  to  funds collected by the department of motor
  vehicles from the sale of certain assets; and to repeal subdivision  4
  of  section  94  of  the  transportation  law relating to certain fees
  collected by the commissioner of transportation (Part K); to amend the
  public authorities law, in  relation  to  creation  of  transportation
  improvement  subdistricts;  and to amend the real property tax law, in
  relation to authorizing a tax levy to fund certain operations  of  the
  Metropolitan  Transportation  Authority  (Part L); to amend the public
  authorities law, in relation to the funding of the capital program  of
  the  metropolitan  transportation  authority  (Part  M);  to amend the
  public authorities law, in relation  to  acceleration  of  procurement
  contracts  made  with foreign enterprises; in relation to acceleration
  of procurements made for smaller purchases; and  in  relation  to  the
  modification  of  service or funding agreements (Part N); to amend the
  New York state urban  development  corporation  act,  in  relation  to
  extending  certain  provisions  relating  to the empire state economic
  development fund (Part O); to amend the chapter 393  of  the  laws  of
  1994,  amending  the New York state urban development corporation act,
  relating to the powers of the New York state urban development  corpo-
  ration  to  make loans, in relation to the effectiveness thereof (Part
  P); to amend the executive law, the  state  finance  law,  the  public
  authorities  law,  the  public  buildings  law,  and the penal law, in
  relation to the reauthorization of the minority and women-owned  busi-
  ness  enterprise  program;  to  amend chapter 261 of the laws of 1988,
  amending the state finance law and other  laws  relating  to  the  New
  York  state  infrastructure  fund, in relation to the effectiveness of
  certain provisions  thereof;  and  to  amend  the  executive  law,  in
  relation  to establishing the workforce diversity program; and provid-
  ing for the repeal of certain provisions upon expiration thereof (Part
  Q); to amend the infrastructure investment act, in relation to author-
  ized entities and design-build contracts (Part R); to amend chapter 21
  of the laws of 2003, amending the executive law relating to permitting
  the secretary of state to provide special handling for  all  documents

S. 7508--A                          3                         A. 9508--A

  filed  or  issued  by the division of corporations and to permit addi-
  tional levels of such expedited service, in relation to extending  the
  expiration  date  thereof  (Part S); to amend the business corporation
  law,  the cooperative corporations law, the executive law, the general
  associations law, the general  business  law,  the  limited  liability
  company  law, the not-for-profit corporation law, the partnership law,
  the private housing finance law, the arts and  cultural  affairs  law,
  the real property law and the tax law, in relation to streamlining the
  process  by  which service of process is served against a corporate or
  other entity with the  secretary  of  state;  and  to  repeal  certain
  provisions  of  the  real  property  law relating thereto (Part T); to
  amend the general municipal law, in relation to brownfield opportunity
  areas (Part U); to repeal section 159-j of the executive law, relating
  to the local share requirement for providers under the federal  commu-
  nity  services block grant program (Part V); to amend the banking law,
  in relation to student loan servicers (Subpart A); to amend the finan-
  cial services law, in relation to student debt collectors (Subpart B);
  and to amend the education law, in relation to  student  loan  debtors
  (Subpart  C)(Part W); to amend chapter 584 of the laws of 2011, amend-
  ing the public authorities law relating to the powers  and  duties  of
  the  dormitory  authority  of  the  state  of New York relative to the
  establishment of subsidiaries for certain purposes, in relation to the
  effectiveness thereof (Part X); to amend part S of chapter 58  of  the
  laws  of  2016,  amending  the New York state urban development corpo-
  ration act relating to transferring the statutory  authority  for  the
  promulgation  of  marketing  orders from the department of agriculture
  and markets to the New York state urban  development  corporation,  in
  relation  to  the  effectiveness  thereof  (Part Y); to amend the real
  property tax law, in relation to the taxation of forest land; to amend
  the environmental conservation law,  in  relation  to  timber  harvest
  notification  and  the  creation  of  forest protection and management
  programs; and to amend the state  finance  law,  in  relation  to  the
  procurement  of  wood  and  wood fiber projects (Part Z); to amend the
  state finance law and the environmental conservation law, in  relation
  to  the  environmental  protection  fund, the hazardous waste remedial
  fund and the mitigation and remediation of solid waste sites;  and  to
  repeal  certain  provisions  of the state finance law and the environ-
  mental conservation law relating thereto (Part AA); to amend the envi-
  ronmental conservation law, in relation to the donation of excess food
  and recycling of food scraps (Part BB);  to  amend  the  environmental
  conservation  law,  in  relation  to the Central Pine Barrens area and
  core preservation area (Part CC); authorizing utility and cable  tele-
  vision  assessments  to provide funds to the department of health from
  cable television assessment revenues and to the departments  of  agri-
  culture  and  markets,  environmental  conservation,  office of parks,
  recreation and historic preservation, and state from  utility  assess-
  ment  revenues  (Part  DD);  authorizing  the  New  York  state energy
  research and  development  authority  to  finance  a  portion  of  its
  research, development and demonstration, policy and planning, and Fuel
  NY programs, as well as the department of environmental conservation's
  climate  change program and the department of agriculture and markets'
  Fuel NY program, from an assessment on gas and  electric  corporations
  (Part  EE);  to amend the public authorities law, in relation to ener-
  gy-related projects, programs and services of the power  authority  of
  the  state of New York (Part FF); to amend the public authorities law,
  in relation to the provision of renewable  power  and  energy  by  the

S. 7508--A                          4                         A. 9508--A

  power authority of the state of New York (Part GG); and ; to amend the
  real  property  actions  and  proceedings  law, in relation to reverse
  mortgages (Part HH); and to amend the vehicle  and  traffic  law,  the
  general  municipal  law,  and  the public officers law, in relation to
  owner liability for failure of an operator  to  comply  with  stopping
  requirements  in certain portions of the city of New York; and provid-
  ing for the repeal of such provisions upon  expiration  thereof  (Part
  II)

  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 2018-2019
state  fiscal  year.  Each  component  is wholly contained within a Part
identified as Parts A through II. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part.   Any provision in  any  section  contained  within  a  Part,
including  the  effective date of the Part, which makes a reference to a
section "of this act", when used  in  connection  with  that  particular
component,  shall  be  deemed  to  mean  and  refer to the corresponding
section of the Part in which it is found. Section three of this act sets
forth the general effective date of this act.

                                 PART A

  Section 1. Subparagraph (iii) of paragraph (b)  of  subdivision  2  of
section 510 of the vehicle and traffic law, as amended by chapter 349 of
1993, is amended to read as follows:
  (iii)  such  registrations shall be suspended when necessary to comply
with subdivision nine of section one hundred forty or  subdivision  four
of  section  one hundred forty-five of the transportation law OR WITH AN
OUT OF SERVICE ORDER ISSUED BY THE UNITED STATES DEPARTMENT OF TRANSPOR-
TATION. The commissioner shall have the authority to deny a registration
or renewal application to any other person for the same vehicle and  may
deny  a  registration or renewal application for any other motor vehicle
registered in the name of the applicant where  it  has  been  determined
that  such  registrant's  intent  has been to evade the purposes of this
subdivision and where the commissioner has reasonable grounds to believe
that such registration or renewal will have the effect of defeating  the
purposes  of  this subdivision.   ANY SUSPENSION ISSUED PURSUANT TO THIS
SUBDIVISION BY REASON OF AN OUT OF SERVICE ORDER ISSUED  BY  THE  UNITED
STATES  DEPARTMENT  OF  TRANSPORTATION SHALL REMAIN IN EFFECT UNTIL SUCH
TIME AS THE COMMISSIONER IS NOTIFIED BY THE UNITED STATES DEPARTMENT  OF
TRANSPORTATION  OR  THE  COMMISSIONER  OF  TRANSPORTATION THAT THE ORDER
RESULTING IN THE SUSPENSION IS NO LONGER IN EFFECT.
  § 2. Subdivision 3 of section 145 of the transportation law, as  added
by chapter 635 of the laws of 1983, is amended to read as follows:
  3.  In  addition  to,  or  in lieu of, any sanctions set forth in this
section, the commissioner may, after a hearing, impose a penalty not  to
exceed a maximum of five thousand dollars in any one proceeding upon any
person  if  the commissioner finds that such person or officer, agent or
employee thereof has failed to comply  with  the  requirements  of  this
chapter or any rule, regulation or order of the commissioner promulgated
thereunder.  PROVIDED, HOWEVER, THAT THE COMMISSIONER MAY, AFTER A HEAR-

S. 7508--A                          5                         A. 9508--A

ING,  IMPOSE  A  PENALTY  NOT TO EXCEED TEN THOUSAND DOLLARS IN A SECOND
PROCEEDING FOR ANOTHER VIOLATION COMMITTED WITHIN EIGHTEEN MONTHS AND  A
PENALTY NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS IN A THIRD PROCEEDING
FOR  ADDITIONAL  VIOLATIONS  COMMITTED  WITHIN  EIGHTEEN MONTHS. If such
penalty is not paid within  four  months,  the  amount  thereof  may  be
entered as a judgment in the office of the clerk of the county of Albany
and  in  any  other  county  in which the person resides, has a place of
business or through which it operates. Thereafter, if said judgment  has
not been satisfied within ninety days, any certificate or permit held by
any  such  person may be revoked upon notice but without a further hear-
ing. Provided, however, that if a person shall apply for a rehearing  of
the  determination  of the penalty pursuant to the provisions of section
eighty-nine of this chapter, judgment  shall  not  be  entered  until  a
determination has been made on the application for a rehearing.  Further
provided  however,  that  if  after a rehearing a penalty is imposed and
such penalty is not paid within four months of the date  of  service  of
the  rehearing  decision, the amount of such penalty may be entered as a
judgment in the office of the clerk of the county of Albany and  in  any
other  county  in  which  the person resides, has a place of business or
through which it operates. Thereafter, if said  judgment  has  not  been
satisfied within ninety days, any certificate or permit held by any such
person may be revoked upon notice but without a further hearing.
  § 3. This act shall take effect immediately.

                                 PART B

  Section  1. Subdivision 3 of section 20 of the highway law, as amended
by chapter 736 of the laws of 1984, is amended to read as follows:
  3. The commissioner may  in  his  discretion  develop  such  sites  by
providing  any or all of the following: a water supply, sanitary facili-
ties, parking space for automobiles or such other COMMERCIAL OR non-com-
mercial facilities as are suitable for  rest  and  relaxation  stops  by
highway  travelers. The commissioner may also permit the installation of
vending machines dispensing such food, drink and other  articles  as  he
deems appropriate or desirable.  Such sites shall be suitably marked and
markings  indicating  their  location may be erected on highways leading
thereto.
  § 2. This act shall take effect immediately.

                                 PART C

  Section 1. Section 217 of the transportation law is amended by  adding
a new subdivision 9 to read as follows:
  9.  TO ENFORCE THE REQUIREMENTS OF SECTION FIVE THOUSAND THREE HUNDRED
TWENTY-NINE OF TITLE FORTY-NINE OF THE UNITED STATES  CODE,  AS  AMENDED
FROM  TIME  TO TIME, AS IT PERTAINS TO RAIL FIXED GUIDEWAY PUBLIC TRANS-
PORTATION SYSTEMS.
  § 2. This act shall take effect immediately.

                                 PART D

  Section 1. Subdivision 6 of section 2897 of the public authorities law
is amended by adding a new paragraph f to read as follows:
  F. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS SECTION,
DISPOSALS FOR USE OF THE NEW YORK STATE THRUWAY AUTHORITY'S FIBER  OPTIC

S. 7508--A                          6                         A. 9508--A

SYSTEM, OR ANY PART THEREOF, MAY BE MADE THROUGH AGREEMENTS BASED ON SET
FEES RATHER THAN PUBLIC AUCTION OR NEGOTIATION, PROVIDED THAT:
  (I) THE THRUWAY AUTHORITY HAS DETERMINED THE DISPOSAL OF SUCH PROPERTY
COMPLIES WITH ALL APPLICABLE PROVISIONS OF THIS CHAPTER;
  (II)  DISPOSAL OF SUCH PROPERTY IS IN THE BEST INTEREST OF THE THRUWAY
AUTHORITY; AND
  (III) THE SET FEES ESTABLISHED FOR USE OF THE FIBER OPTIC  SYSTEM,  OR
PART  THEREOF, WILL BE BASED ON AN APPRAISAL OF THE FAIR MARKET VALUE OF
THE PROPERTY.
  DISPOSALS OF THE FIBER OPTIC SYSTEM, OR ANY  PART  THEREOF,  WILL  NOT
REQUIRE THE EXPLANATORY STATEMENTS REQUIRED BY THIS SECTION.
  § 2. This act shall take effect immediately.

                                 PART E

  Section  1.  The transportation law is amended by adding a new section
144 to read as follows:
  § 144. FEES AND CHARGES. THE COMMISSIONER  OR  AUTHORIZED  OFFICER  OR
EMPLOYEE  OF  THE DEPARTMENT SHALL CHARGE AND COLLECT ONE HUNDRED TWENTY
DOLLARS FOR THE INSPECTION OR RE-INSPECTION OF ALL MOTOR VEHICLES TRANS-
PORTING PASSENGERS SUBJECT TO THE DEPARTMENT'S  INSPECTION  REQUIREMENTS
PURSUANT TO SECTION ONE HUNDRED FORTY OF THIS ARTICLE, EXCEPT SUCH MOTOR
VEHICLES  OPERATED  UNDER CONTRACT WITH A MUNICIPALITY TO PROVIDE STATE-
WIDE MASS TRANSPORTATION OPERATING ASSISTANCE ELIGIBLE SERVICE OR  MOTOR
VEHICLES  USED  PRIMARILY  TO  TRANSPORT PASSENGERS PURSUANT TO SUBPARA-
GRAPHS (I), (III) AND (V) OF PARAGRAPH A OF SUBDIVISION TWO  OF  SECTION
ONE HUNDRED FORTY OF THIS ARTICLE. THE DEPARTMENT MAY DENY INSPECTION OF
ANY  MOTOR  VEHICLE  TRANSPORTING PASSENGERS SUBJECT TO THE DEPARTMENT'S
INSPECTION REQUIREMENTS IF SUCH FEE IS NOT PAID WITHIN  NINETY  DAYS  OF
THE DATE NOTED ON THE DEPARTMENT INVOICE.
  § 2. This act shall take effect immediately.

                                 PART F

  Section  1.  The  first  undesignated paragraph of subdivision 24-b of
section 10 of the highway law, as amended by  chapter  155  of  laws  of
1985, is amended to read as follows:
  Have  power,  whenever such commissioner of transportation deems it is
necessary as a result of work of construction, reconstruction or mainte-
nance of  state  highways,  to  provide  for  the  removal,  relocation,
replacement  or  reconstruction  of privately, publicly or cooperatively
owned water, storm and sewer lines and facilities,  facilities  for  the
transmission  and/or distribution of communications, power, electricity,
light, heat, gas, crude products, steam and other  similar  commodities,
municipal  utility  facilities, or facilities of a corporation organized
pursuant to the transportation corporations  law  that  are  located  on
privately  owned  property.  NOTWITHSTANDING  ANY OTHER PROVISION OF ANY
LAW, THE COMMISSIONER OF TRANSPORTATION MAY ENTER INTO AN AGREEMENT WITH
A FIBER OPTIC UTILITY FOR OCCUPANCY OF THE STATE RIGHT OF WAY,  PROVIDED
HOWEVER, ANY PROVIDER OCCUPYING A RIGHT OF WAY IN FULFILLMENT OF A STATE
GRANT AWARD THROUGH THE NEW NY BROADBAND PROGRAM SHALL NOT BE SUBJECT TO
A  FEE  FOR  SUCH OCCUPANCY, AND PROVIDED FURTHER, ANY FEE FOR OCCUPANCY
CHARGED TO A FIBER OPTIC UTILITY SHALL BE PROHIBITED FROM  BEING  PASSED
THROUGH IN WHOLE OR IN PART AS A FEE, CHARGE, INCREASED SERVICE COST, OR
BY ANY OTHER MEANS BY A FIBER OPTIC UTILITY TO ANY PERSON OR ENTITY THAT
CONTRACTS  WITH  SUCH  FIBER  OPTIC  UTILITY  FOR  SERVICE, AND PROVIDED

S. 7508--A                          7                         A. 9508--A

FURTHER THAT ANY COMPENSATION RECEIVED BY THE  STATE  PURSUANT  TO  SUCH
AGREEMENT  SHALL  BE DEPOSITED BY THE COMPTROLLER INTO THE SPECIAL OBLI-
GATION RESERVE AND PAYMENT ACCOUNT OF THE DEDICATED HIGHWAY  AND  BRIDGE
TRUST  FUND  ESTABLISHED  PURSUANT TO SECTION EIGHTY-NINE-B OF THE STATE
FINANCE LAW. If such work requires  additional  property  or  if  it  is
necessary  that the relocation of such facilities be made to other prop-
erty, he may acquire such property as may be necessary for the  purposes
of  this  subdivision,  in the same manner as other property is acquired
for state highway purposes pursuant to this  chapter,  and  he  and  the
owner  of  such  facilities may enter into a written agreement to convey
such property as deemed necessary for the purposes of  this  subdivision
to  such  owner  on  terms  beneficial to the state. The expense of such
removal, relocation, replacement or reconstruction and cost of  property
acquisition  shall  be  a  proper charge against funds available for the
construction, reconstruction or maintenance of state highways.    Except
when  such  facilities  are owned by a corporation organized pursuant to
the transportation corporations law, the work  of  such  removal,  relo-
cation,  replacement or reconstruction shall be performed by contract in
the same manner as provided for state highways in article three of  this
chapter,  or,  by  the  use  of departmental forces and equipment and of
materials purchased therefor, unless the commissioner of  transportation
consents  to having the owner of such facilities provide for the work of
such removal, relocation, replacement or  reconstruction.  In  the  case
where  such  facilities are owned by a corporation organized pursuant to
the transportation corporations law, the work  of  such  removal,  relo-
cation,  replacement  or  reconstruction  shall  be provided for by such
corporation unless it consents to having the commissioner of transporta-
tion provide for such work to be performed by  contract,  in  accordance
with  specifications provided by such corporation, in the same manner as
provided for state highways in article three of this chapter, or, by the
use of departmental forces and  equipment  and  of  materials  purchased
therefor.  Upon  the  completion  of  the work, such facilities shall be
maintained by the owners thereof.
  § 2. The transportation corporations law is amended by  adding  a  new
section 7 to read as follows:
  §  7.  AGREEMENT  FOR  FIBER OPTIC UTILITY OCCUPANCY OF STATE RIGHT OF
WAY. NOTWITHSTANDING ANY OTHER PROVISION OF ANY LAW, THE COMMISSIONER OF
TRANSPORTATION MAY ENTER INTO AN AGREEMENT WITH A  FIBER  OPTIC  UTILITY
FOR  OCCUPANCY OF THE STATE RIGHT OF WAY, PROVIDED HOWEVER, ANY PROVIDER
OCCUPYING A RIGHT OF WAY IN FULFILLMENT OF A STATE GRANT  AWARD  THROUGH
THE  NEW  NY  BROADBAND  PROGRAM  SHALL NOT BE SUBJECT TO A FEE FOR SUCH
OCCUPANCY, AND PROVIDED FURTHER, ANY FEE  FOR  OCCUPANCY  CHARGED  TO  A
FIBER  OPTIC  UTILITY  SHALL  BE PROHIBITED FROM BEING PASSED THROUGH IN
WHOLE OR IN PART AS A FEE, CHARGE, INCREASED SERVICE  COST,  OR  BY  ANY
OTHER  MEANS  BY  A  FIBER  OPTIC  UTILITY  TO ANY PERSON OR ENTITY THAT
CONTRACTS WITH SUCH  FIBER  OPTIC  UTILITY  FOR  SERVICE,  AND  PROVIDED
FURTHER  THAT  ANY  COMPENSATION  RECEIVED BY THE STATE PURSUANT TO SUCH
AGREEMENT SHALL BE DEPOSITED BY THE COMPTROLLER INTO THE  SPECIAL  OBLI-
GATION  RESERVE  AND PAYMENT ACCOUNT OF THE DEDICATED HIGHWAY AND BRIDGE
TRUST FUND ESTABLISHED PURSUANT TO SECTION EIGHTY-NINE-B  OF  THE  STATE
FINANCE LAW.
  § 3. The general municipal law is amended by adding a new article 13-E
to read as follows:
                              ARTICLE 13-E
                  SMALL WIRELESS FACILITIES DEPLOYMENT
SECTION 300. DEFINITIONS.

S. 7508--A                          8                         A. 9508--A

        301. USE OF RIGHT OF WAY.
        302. COLLOCATION OF SMALL WIRELESS FACILITIES AND MICRO WIRELESS
               FACILITIES.
        303. ACCESS TO MUNICIPAL CORPORATION STRUCTURES.
        304. LOCAL AUTHORITY
        305. DISPUTE RESOLUTION.
        306. INDEMNIFICATION.
  §  300.  DEFINITIONS.  FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS  UNLESS  THE  CONTEXT  INDICATES
OTHERWISE:
  1. "ANTENNA" MEANS COMMUNICATIONS EQUIPMENT THAT TRANSMITS OR RECEIVES
ELECTROMAGNETIC  RADIO  FREQUENCY SIGNALS USED IN THE PROVISION OF WIRE-
LESS SERVICES.
  2. "APPLICABLE CODES" MEANS THE NEW YORK STATE UNIFORM FIRE PREVENTION
AND BUILDING CODE AS ADOPTED, AND AS MAY BE AMENDED, PURSUANT TO ARTICLE
EIGHTEEN OF THE EXECUTIVE LAW.
  3. "APPLICANT" MEANS ANY PERSON OR ENTITY THAT  FILES  AN  APPLICATION
WITH A MUNICIPAL CORPORATION TO INSTALL OR MODIFY WIRELESS FACILITIES ON
BEHALF OF A COMMUNICATIONS SERVICE PROVIDER OR WIRELESS PROVIDER.
  4.  "APPLICATION" MEANS A REQUEST SUBMITTED BY AN APPLICANT TO A LOCAL
GOVERNMENT FOR A PERMIT TO COLLOCATE SMALL WIRELESS  FACILITIES;  OR  TO
APPROVE  THE  INSTALLATION OR MODIFICATION OF A UTILITY POLE OR WIRELESS
SUPPORT STRUCTURE.
  5. "APPLICATION FEE" MEANS THE ONE TIME FEE CHARGED TO AN APPLICANT BY
A MUNICIPAL CORPORATION FOR REVIEW OF AN  APPLICATION.  THE  APPLICATION
FEE MAY NOT EXCEED THE ACTUAL REASONABLE COSTS INCURRED BY THE MUNICIPAL
CORPORATION IN CONNECTION WITH ITS REVIEW OF THE APPLICATION.
  6.  "POLE"  MEANS:  (I)  A UTILITY POLE, OTHER THAN A UTILITY POLE FOR
DESIGNATED SERVICES, OWNED OR OPERATED BY A MUNICIPAL CORPORATION IN THE
RIGHT OF WAY, INCLUDING A UTILITY POLE THAT PROVIDES LIGHTING OR TRAFFIC
CONTROL FUNCTIONS, INCLUDING LIGHT POLES, TRAFFIC  SIGNALS,  AND  STRUC-
TURES  FOR  SIGNAGE; AND (II) A POLE OR SIMILAR STRUCTURE OWNED OR OPER-
ATED BY A MUNICIPAL CORPORATION IN THE RIGHT OF WAY THAT  SUPPORTS  ONLY
WIRELESS FACILITIES.
  7.  "BASE  STATION"  MEANS  WIRELESS  FACILITIES OR A WIRELESS SUPPORT
STRUCTURE OR UTILITY POLE THAT CURRENTLY SUPPORTS  WIRELESS  FACILITIES.
THE  TERM  DOES  NOT  INCLUDE  A  TOWER,  AS  DEFINED  IN 47 C.F.R. § 1.
40001(B)(9), OR ASSOCIATED WIRELESS FACILITIES.
  8. "COLLOCATE" MEANS TO INSTALL, MOUNT, MAINTAIN, MODIFY, OPERATE,  OR
REPLACE  WIRELESS FACILITIES ON OR ADJACENT TO A WIRELESS SUPPORT STRUC-
TURE OR UTILITY POLE. THE TERM "COLLOCATION" HAS A  CORRESPONDING  MEAN-
ING.
  9.  "COMMUNICATIONS  SERVICE  PROVIDER"  MEANS  A  CABLE  OPERATOR, AS
DEFINED IN 47 U.S.C. § 522(5); A PROVIDER  OF  INFORMATION  SERVICE,  AS
DEFINED IN 47 U.S.C. § 153(24); A TELECOMMUNICATIONS CARRIER, AS DEFINED
IN 47 U.S.C. § 153(51); OR A WIRELESS PROVIDER.
  10.  "FCC"  MEANS  THE FEDERAL COMMUNICATIONS COMMISSION OF THE UNITED
STATES.
  11. "FEE" MEANS A ONE-TIME CHARGE.
  12. "LAW" MEANS FEDERAL, STATE, OR LOCAL  LAW,  STATUTE,  COMMON  LAW,
CODE, RULE, REGULATION, ORDER, OR ORDINANCE.
  13. "MICRO WIRELESS FACILITY" MEANS A WIRELESS FACILITY THAT MEETS THE
FOLLOWING  QUALIFICATIONS:  (I)  IS NOT LARGER IN DIMENSION THAN TWENTY-
FOUR INCHES IN LENGTH, FIFTEEN INCHES IN WIDTH,  AND  TWELVE  INCHES  IN
HEIGHT; AND (II) ANY EXTERIOR ANTENNA IS NO LONGER THAN ELEVEN INCHES.

S. 7508--A                          9                         A. 9508--A

  14.  "PERMIT"  MEANS  A  WRITTEN AUTHORIZATION REQUIRED BY A MUNICIPAL
CORPORATION TO PERFORM AN ACTION OR INITIATE, CONTINUE,  OR  COMPLETE  A
PROJECT RELATING TO THE INSTALLATION OR MODIFICATION OF WIRELESS FACILI-
TIES.
  15.  "PERSON"  MEANS  AN  INDIVIDUAL,  CORPORATION,  LIMITED LIABILITY
COMPANY, PARTNERSHIP, ASSOCIATION, TRUST, OR OTHER ENTITY  OR  ORGANIZA-
TION.
  16. "RATE" MEANS A RECURRING CHARGE.
  17.  "RIGHT  OF  WAY"  OR  "ROW"  MEANS THE AREA ON, BELOW, OR ABOVE A
PUBLIC ROADWAY, HIGHWAY, STREET, SIDEWALK, ALLEY, UTILITY  EASEMENT,  OR
SIMILAR PROPERTY, BUT NOT INCLUDING A FEDERAL INTERSTATE HIGHWAY.
  18.  "SMALL  WIRELESS  FACILITY"  MEANS A WIRELESS FACILITY THAT MEETS
BOTH OF THE FOLLOWING QUALIFICATIONS: (I) EACH ANTENNA IS LOCATED INSIDE
AN ENCLOSURE OF NO MORE THAN SIX CUBIC FEET IN VOLUME OR, IN THE CASE OF
AN ANTENNA THAT HAS EXPOSED ELEMENTS, THE ANTENNA AND ALL OF ITS EXPOSED
ELEMENTS COULD FIT WITHIN AN IMAGINARY ENCLOSURE OF  NO  MORE  THAN  SIX
CUBIC  FEET;  AND  (II) ALL OTHER WIRELESS EQUIPMENT ASSOCIATED WITH THE
FACILITY IS CUMULATIVELY NO MORE THAN TWENTY-EIGHT CUBIC FEET IN VOLUME.
THE FOLLOWING TYPES OF ASSOCIATED ANCILLARY EQUIPMENT ARE  NOT  INCLUDED
IN  THE  CALCULATION  OF  EQUIPMENT  VOLUME: ELECTRIC METER, CONCEALMENT
ELEMENTS, TELECOMMUNICATIONS DEMARCATION BOX,  GROUND-BASED  ENCLOSURES,
GROUNDING EQUIPMENT, POWER TRANSFER SWITCH, CUT-OFF SWITCH, AND VERTICAL
CABLE RUNS FOR THE CONNECTION OF POWER AND OTHER SERVICES.
  19.  "SUBSTANTIAL  MODIFICATION"  MEANS  A PROPOSED MODIFICATION TO AN
EXISTING WIRELESS SUPPORT STRUCTURE OR BASE STATION WHICH WILL  SUBSTAN-
TIALLY  CHANGE THE PHYSICAL DIMENSIONS OF THE WIRELESS SUPPORT STRUCTURE
OR BASE STATION UNDER THE  OBJECTIVE  STANDARD  FOR  SUBSTANTIAL  CHANGE
ADOPTED BY THE FEDERAL COMMUNICATIONS COMMISSION PURSUANT TO 47 C.F.R. §
1.40001.
  20.  "UTILITY  POLE" MEANS A POLE OR SIMILAR STRUCTURE THAT IS USED IN
WHOLE OR IN PART BY A COMMUNICATIONS SERVICE PROVIDER  OR  FOR  ELECTRIC
DISTRIBUTION, LIGHTING, TRAFFIC CONTROL, SIGNAGE, OR A SIMILAR FUNCTION.
SUCH  TERM SHALL NOT INCLUDE STRUCTURES SUPPORTING ONLY WIRELESS FACILI-
TIES.
  21. "UTILITY POLE FOR DESIGNATED SERVICES" MEANS A UTILITY POLE  OWNED
OR  OPERATED  IN  THE  ROW  BY A MUNICIPAL CORPORATION, A PUBLIC UTILITY
DISTRICT, AN ELECTRIC MEMBERSHIP CORPORATION, OR A RURAL ELECTRIC  COOP-
ERATIVE THAT IS DESIGNED TO, OR USED IN WHOLE OR IN PART FOR THE PURPOSE
OF  CARRYING ELECTRIC DISTRIBUTION LINES OR CABLES OR WIRES FOR TELECOM-
MUNICATIONS, CABLE, OR ELECTRIC SERVICE.
  22. "WIRELESS FACILITY" MEANS  EQUIPMENT  AT  A  FIXED  LOCATION  THAT
ENABLES  WIRELESS  COMMUNICATIONS  BETWEEN USER EQUIPMENT AND A COMMUNI-
CATIONS NETWORK,  INCLUDING:  (I)  EQUIPMENT  ASSOCIATED  WITH  WIRELESS
COMMUNICATIONS;  AND  (II)  RADIO  TRANSCEIVERS,  ANTENNAS,  COAXIAL  OR
FIBER-OPTIC CABLE, REGULAR AND BACKUP  POWER  SUPPLIES,  AND  COMPARABLE
EQUIPMENT,  REGARDLESS OF TECHNOLOGICAL CONFIGURATION. THE TERM INCLUDES
SMALL WIRELESS FACILITIES AND MICRO WIRELESS FACILITIES. THE  TERM  DOES
NOT INCLUDE THE STRUCTURE OR IMPROVEMENTS ON, UNDER, OR WITHIN WHICH THE
EQUIPMENT IS COLLOCATED. THE TERM DOES NOT INCLUDE: (I) THE STRUCTURE OR
IMPROVEMENTS  ON, UNDER, OR WITHIN WHICH THE EQUIPMENT IS COLLOCATED; OR
(II) COAXIAL OR FIBER-OPTIC CABLE THAT IS BETWEEN WIRELESS STRUCTURES OR
UTILITY POLES OR THAT  IS  OTHERWISE  NOT  IMMEDIATELY  ADJACENT  TO  OR
DIRECTLY ASSOCIATED WITH A PARTICULAR ANTENNA.
  23.  "WIRELESS  INFRASTRUCTURE PROVIDER" MEANS ANY PERSON, INCLUDING A
PERSON AUTHORIZED TO PROVIDE TELECOMMUNICATIONS SERVICE  IN  THE  STATE,
THAT  BUILDS  OR INSTALLS WIRELESS COMMUNICATION TRANSMISSION EQUIPMENT,

S. 7508--A                         10                         A. 9508--A

WIRELESS FACILITIES OR WIRELESS SUPPORT STRUCTURES, BUT THAT  IS  NOT  A
WIRELESS SERVICES PROVIDER.
  24.  "WIRELESS PROVIDER" MEANS A WIRELESS INFRASTRUCTURE PROVIDER OR A
WIRELESS SERVICES PROVIDER.
  25. "WIRELESS  SERVICES"  MEANS  ANY  SERVICES,  WHETHER  AT  A  FIXED
LOCATION OR MOBILE, PROVIDED USING WIRELESS FACILITIES.
  26.  "WIRELESS  SERVICES  PROVIDER"  MEANS  ANY  PERSON OR ENTITY THAT
PROVIDES WIRELESS SERVICES.
  27. "WIRELESS SUPPORT STRUCTURE" MEANS A FREESTANDING STRUCTURE,  SUCH
AS  A  MONOPOLE;  TOWER, EITHER GUYED OR SELF-SUPPORTING; BILLBOARD; OR,
OTHER EXISTING OR PROPOSED STRUCTURE DESIGNED TO SUPPORT OR  CAPABLE  OF
SUPPORTING  WIRELESS  FACILITIES.  SUCH TERM SHALL NOT INCLUDE A UTILITY
POLE.
  § 301. USE OF RIGHT OF WAY. 1. APPLICABILITY. THIS SECTION SHALL  ONLY
APPLY TO THE ACTIVITIES OF A WIRELESS PROVIDER WITHIN THE RIGHT OF WAY.
  2.  EXCLUSIVE  USE  PROHIBITED.  A MUNICIPAL CORPORATION MAY NOT ENTER
INTO AN EXCLUSIVE ARRANGEMENT WITH ANY PERSON FOR USE OF  THE  RIGHT  OF
WAY  FOR THE CONSTRUCTION, OPERATION, MARKETING, OR MAINTENANCE OF WIRE-
LESS FACILITIES OR WIRELESS SUPPORT STRUCTURES  OR  THE  COLLOCATION  OF
SMALL WIRELESS FACILITIES OR MICRO WIRELESS FACILITIES.
  3.  RIGHT  OF  WAY  RATES  AND  FEES. A MUNICIPAL CORPORATION MAY ONLY
CHARGE A WIRELESS PROVIDER A RATE OR FEE FOR THE USE OF THE RIGHT OF WAY
WITH RESPECT TO THE CONSTRUCTION, INSTALLATION,  MOUNTING,  MAINTENANCE,
MODIFICATION,  OPERATION, OR REPLACEMENT OF A WIRELESS FACILITY OR WIRE-
LESS SUPPORT STRUCTURE IN THE RIGHT OF  WAY,  INCLUDING  COLLOCATION  IN
SUCH  RIGHT  OF WAY, IF THE MUNICIPAL CORPORATION CHARGES OTHER COMMUNI-
CATIONS SERVICE PROVIDERS OR  PUBLICLY,  COOPERATIVELY,  OR  MUNICIPALLY
OWNED  UTILITIES  FOR THE USE OF THE RIGHT OF WAY. IF A MUNICIPAL CORPO-
RATION IS AUTHORIZED BY APPLICABLE LAW TO CHARGE A RATE OR FEE TO  THOSE
PERSONS  OR  ENTITIES,  AND DOES SO, ANY SUCH RATE OR FEE FOR A WIRELESS
PROVIDER MUST BE: (I) LIMITED TO NO MORE THAN THE DIRECT AND ACTUAL COST
OF MANAGING THE RIGHT OF WAY; AND (II) COMPETITIVELY NEUTRAL WITH REGARD
TO OTHER USERS OF THE RIGHT OF WAY, INCLUDING INVESTOR, MUNICIPAL CORPO-
RATION, OR COOPERATIVELY OWNED ENTITIES. NO RATE OR FEE MAY: (I)  RESULT
IN  A  DOUBLE  RECOVERY  WHERE  EXISTING  RATES,  FEES, OR TAXES ALREADY
RECOVER THE DIRECT AND ACTUAL COSTS OF MANAGING THE RIGHTS OF WAY;  (II)
BE  IN THE FORM OF A FRANCHISE OR OTHER FEE BASED ON REVENUE OR CUSTOMER
COUNTS; (III) BE UNREASONABLE OR DISCRIMINATORY; (IV) VIOLATE ANY APPLI-
CABLE LAW; OR (V) EXCEED AN ANNUAL AMOUNT EQUAL TO TWENTY DOLLARS  TIMES
THE NUMBER OF UTILITY POLES OR WIRELESS SUPPORT STRUCTURES IN THE MUNIC-
IPAL CORPORATION'S GEOGRAPHIC JURISDICTION ON WHICH THE WIRELESS PROVID-
ER HAS COLLOCATED A SMALL WIRELESS FACILITY ANTENNA. NOTWITHSTANDING THE
FOREGOING,  IN  RECOGNITION  OF THE PUBLIC BENEFITS OF THE DEPLOYMENT OF
WIRELESS SERVICES, A MUNICIPAL CORPORATION IS PERMITTED, ON A NONDISCRI-
MINATORY BASIS, TO REFRAIN FROM CHARGING ANY RATE OR FEE TO  A  WIRELESS
PROVIDER FOR THE USE OF THE RIGHT OF WAY.
  4.  RATE  OR  FEE  ADJUSTMENT.  SHOULD A MUNICIPAL CORPORATION HAVE AN
EXISTING RATE OR FEE TO CONSTRUCT,  INSTALL,  MOUNT,  MAINTAIN,  MODIFY,
OPERATE, OR REPLACE A WIRELESS FACILITY OR WIRELESS SUPPORT STRUCTURE IN
THE  ROW, INCLUDING COLLOCATION IN SUCH ROW, CONTROLLED BY THE MUNICIPAL
CORPORATION AND SUCH RATE OR FEE DOES NOT COMPLY WITH  THE  REQUIREMENTS
IN  SUBDIVISION THREE OF THIS SECTION, NOT LATER THAN SIX MONTHS FOLLOW-
ING THE EFFECTIVE DATE OF THIS ARTICLE, THE MUNICIPAL CORPORATION  SHALL
IMPLEMENT  A REVISED RATE OR FEE TO ENSURE COMPLIANCE WITH SUCH SUBDIVI-
SION THREE FOR ALL AFFECTED PERSONS.

S. 7508--A                         11                         A. 9508--A

  5. RIGHT OF ACCESS. SUBJECT TO THE  PROVISIONS  OF  THIS  SECTION  AND
APPROVAL  OF AN APPLICATION, IF REQUIRED, A WIRELESS PROVIDER SHALL HAVE
THE RIGHT, AS A PERMITTED USE NOT SUBJECT TO ZONING REVIEW OR  APPROVAL,
BUT  SUBJECT TO THE ISSUANCE OF A PERMIT BY THE MUNICIPAL CORPORATION AS
PROVIDED   IN   THIS  ARTICLE,  TO  COLLOCATE  WIRELESS  FACILITIES  AND
CONSTRUCT, MODIFY, MAINTAIN, AND OPERATE UTILITY POLES, WIRELESS SUPPORT
STRUCTURES, CONDUIT, CABLE, AND  RELATED  APPURTENANCES  AND  FACILITIES
ALONG,  ACROSS,  UPON, AND UNDER THE ROW. SUCH STRUCTURES AND FACILITIES
SHALL BE SO CONSTRUCTED AND MAINTAINED AS NOT TO OBSTRUCT OR HINDER  THE
USUAL  TRAVEL  OR PUBLIC SAFETY ON SUCH ROW OR OBSTRUCT THE LEGAL USE OF
SUCH ROW BY OTHER UTILITIES. EACH NEW OR MODIFIED UTILITY POLE AND WIRE-
LESS SUPPORT STRUCTURE INSTALLED IN THE ROW SHALL NOT EXCEED THE GREATER
OF (I) TEN FEET IN HEIGHT ABOVE THE TALLEST  EXISTING  UTILITY  POLE  IN
PLACE  AS  OF  THE  EFFECTIVE  DATE  OF THIS ARTICLE LOCATED WITHIN FIVE
HUNDRED FEET OF THE NEW POLE IN THE SAME ROW; OR (II) FIFTY  FEET  ABOVE
GROUND LEVEL. NEW WIRELESS FACILITIES IN THE ROW MAY NOT EXTEND (I) MORE
THAN  TEN FEET ABOVE AN EXISTING UTILITY POLE OR WIRELESS SUPPORT STRUC-
TURE IN PLACE AS OF THE EFFECTIVE DATE OF THIS ARTICLE;  OR  (II)  ABOVE
THE  HEIGHT  PERMITTED FOR A NEW UTILITY POLE OR WIRELESS SUPPORT STRUC-
TURE UNDER THIS SECTION. NOTWITHSTANDING THE FOREGOING:
  A. SUBJECT TO THIS ARTICLE, A WIRELESS PROVIDER SHALL HAVE  THE  RIGHT
TO  CONSTRUCT,  MODIFY  AND  MAINTAIN  A  UTILITY POLE, WIRELESS SUPPORT
STRUCTURE, OR WIRELESS FACILITY THAT EXCEEDS THESE  SIZE  LIMITS  ALONG,
ACROSS,  UPON  AND  UNDER  THE ROW, SUBJECT TO REVIEW IN ACCORDANCE WITH
APPLICABLE MUNICIPAL ZONING REGULATIONS; AND
  B.  APPLICANTS  SHALL  COMPLY  WITH  NONDISCRIMINATORY  UNDERGROUNDING
REQUIREMENTS  AFTER  OBTAINING  PRIOR ZONING APPROVAL IN AREAS ZONED FOR
SINGLE FAMILY RESIDENTIAL USE, PROVIDED THAT SUCH REQUIREMENTS SHALL NOT
PROHIBIT THE REPLACEMENT OF EXISTING STRUCTURES OR RESULT IN  AN  EFFEC-
TIVE  PROHIBITION  OF  SERVICES.  IN  ALL  OTHER ZONING DISTRICTS, PRIOR
ZONING APPROVAL SHALL NOT BE REQUIRED FOR UNDERGROUNDING NEW INFRASTRUC-
TURE ASSOCIATED WITH SMALL WIRELESS FACILITIES.
  6. NO DISCRIMINATION. THE MUNICIPAL CORPORATION, IN  THE  EXERCISE  OF
ITS  ADMINISTRATION  AND REGULATION RELATED TO THE MANAGEMENT OF THE ROW
MUST BE COMPETITIVELY NEUTRAL WITH REGARD TO OTHER  USERS  OF  THE  ROW,
INCLUDING  THAT  TERMS MAY NOT BE UNREASONABLE OR DISCRIMINATORY AND MAY
NOT VIOLATE ANY APPLICABLE LAW.
  7. DAMAGE AND REPAIR. THE MUNICIPAL CORPORATION MAY REQUIRE A WIRELESS
PROVIDER TO REPAIR ALL DAMAGE TO THE ROW DIRECTLY CAUSED BY  THE  ACTIV-
ITIES  OF  THE WIRELESS PROVIDER, WHILE OCCUPYING, INSTALLING, REPAIRING
OR MAINTAINING WIRELESS  FACILITIES,  WIRELESS  SUPPORT  STRUCTURES,  OR
UTILITY  POLES IN THE ROW AND TO RETURN THE ROW TO ITS FUNCTIONAL EQUIV-
ALENCE BEFORE THE DAMAGE PURSUANT TO THE COMPETITIVELY NEUTRAL,  REASON-
ABLE  REQUIREMENTS  AND  SPECIFICATIONS OF THE MUNICIPAL CORPORATION. IF
THE WIRELESS PROVIDER FAILS TO MAKE THE REPAIRS REASONABLY  REQUIRED  BY
THE MUNICIPAL CORPORATION WITHIN A REASONABLE TIME AFTER WRITTEN NOTICE,
THE MUNICIPAL CORPORATION MAY EFFECT THOSE REPAIRS AND CHARGE THE APPLI-
CABLE PARTY THE REASONABLE, DOCUMENTED ACTUAL COST OF SUCH REPAIRS.
  §  302.  COLLOCATION  OF  SMALL WIRELESS FACILITIES AND MICRO WIRELESS
FACILITIES. 1. APPLICABILITY. THE PROVISIONS OF THIS SECTION SHALL APPLY
TO ACTIVITIES OF A WIRELESS PROVIDER WITHIN OR OUTSIDE OF THE  RIGHT  OF
WAY.
  2.  EXCEPT  AS EXPRESSLY PROVIDED IN THIS ARTICLE, NO MUNICIPAL CORPO-
RATION  MAY  REGULATE,  PROHIBIT  OR  CHARGE  FOR  THE  COLLOCATION   OF
SMALL/MICRO WIRELESS FACILITIES.

S. 7508--A                         12                         A. 9508--A

  3.  SMALL  WIRELESS  FACILITIES AND MICRO WIRELESS FACILITIES SHALL BE
CLASSIFIED AS PERMITTED  USES  AND  NOT  SUBJECT  TO  ZONING  REVIEW  OR
APPROVAL  IF  THEY ARE COLLOCATED: (I) IN THE RIGHT OF WAY IN ANY ZONING
DISTRICT; OR (II) OUTSIDE THE RIGHT OF WAY IN PROPERTY NOT ZONED  EXCLU-
SIVELY FOR SINGLE FAMILY RESIDENTIAL USE.
  4.  A  MUNICIPAL CORPORATION MAY REQUIRE AN APPLICANT TO OBTAIN ONE OR
MORE PERMITS TO COLLOCATE  A  SMALL  WIRELESS  FACILITY,  PROVIDED  SUCH
PERMITS  ARE  OF  GENERAL  APPLICABILITY AND DO NOT APPLY EXCLUSIVELY TO
WIRELESS FACILITIES. A MUNICIPAL CORPORATION SHALL RECEIVE  APPLICATIONS
FOR,  PROCESS,  AND ISSUE SUCH PERMITS SUBJECT TO THE FOLLOWING REQUIRE-
MENTS: (I) NO MUNICIPAL CORPORATION MAY, DIRECTLY OR INDIRECTLY, REQUIRE
AN APPLICANT TO PERFORM SERVICES UNRELATED TO THE COLLOCATION FOR  WHICH
APPROVAL  IS  SOUGHT,  SUCH  AS  IN-KIND  CONTRIBUTIONS TO THE MUNICIPAL
CORPORATION, INCLUDING RESERVING FIBER, CONDUIT, OR POLE SPACE  FOR  THE
MUNICIPAL  CORPORATION;  (II)  NO APPLICANT SHALL BE REQUIRED TO PROVIDE
MORE INFORMATION TO OBTAIN A PERMIT THAN COMMUNICATIONS SERVICE  PROVID-
ERS  THAT ARE NOT WIRELESS PROVIDERS; (III) WITHIN TEN DAYS OF RECEIVING
AN APPLICATION, A MUNICIPAL CORPORATION SHALL DETERMINE AND  NOTIFY  THE
APPLICANT  WHETHER  THE  APPLICATION  IS  COMPLETE. IF AN APPLICATION IS
INCOMPLETE, THE MUNICIPAL CORPORATION SHALL SPECIFICALLY  IDENTIFY  WHAT
INFORMATION  IS  MISSING;  (IV)  AN  APPLICATION SHALL BE PROCESSED ON A
NONDISCRIMINATORY BASIS AND SHALL BE DEEMED APPROVED  IF  THE  MUNICIPAL
CORPORATION  FAILS  TO  OTHERWISE APPROVE OR DENY THE APPLICATION WITHIN
SIXTY DAYS OF RECEIPT; AND (V) A MUNICIPAL CORPORATION SHALL APPROVE  AN
APPLICATION  UNLESS  IT  DOES NOT MEET THE REQUIREMENTS OF THIS ARTICLE.
THE MUNICIPAL CORPORATION SHALL  DOCUMENT  THE  BASIS  FOR  ANY  DENIAL,
INCLUDING  THE  SPECIFIC  CODE PROVISIONS ON WHICH THE DENIAL WAS BASED,
AND SEND THE DOCUMENTATION TO THE APPLICANT ON OR  BEFORE  THE  DAY  THE
MUNICIPAL CORPORATION DENIES THE APPLICATION. THE APPLICANT MAY CURE THE
DEFICIENCIES  IDENTIFIED  BY  THE MUNICIPAL CORPORATION AND RESUBMIT THE
APPLICATION WITHIN THIRTY DAYS OF THE DENIAL  WITHOUT  PAYING  AN  ADDI-
TIONAL  APPLICATION FEE. THE MUNICIPAL CORPORATION SHALL APPROVE OR DENY
THE REVISED APPLICATION WITHIN THIRTY DAYS. ANY SUBSEQUENT REVIEW  SHALL
BE  LIMITED  TO  THE DEFICIENCIES CITED IN THE DENIAL; (VI) AN APPLICANT
SEEKING TO COLLOCATE SMALL WIRELESS FACILITIES WITHIN  THE  JURISDICTION
OF  A  SINGLE MUNICIPAL CORPORATION SHALL BE ALLOWED, AT THE APPLICANT'S
DISCRETION, TO FILE A CONSOLIDATED  APPLICATION  AND  RECEIVE  A  SINGLE
PERMIT  FOR THE COLLOCATION OF MULTIPLE SMALL WIRELESS FACILITIES; (VII)
COLLOCATION FOR WHICH A PERMIT HAS BEEN GRANTED  SHALL  COMMENCE  WITHIN
ONE  YEAR  OF APPROVAL AND SHALL BE PURSUED TO COMPLETION; AND (VIII) NO
MUNICIPAL CORPORATION MAY INSTITUTE, EITHER EXPRESSLY  OR  DE  FACTO,  A
MORATORIUM  ON:  A. FILING, RECEIVING, OR PROCESSING APPLICATIONS; OR B.
ISSUING PERMITS OR OTHER APPROVALS, IF ANY, FOR THE COLLOCATION OF SMALL
WIRELESS FACILITIES.
  5. APPLICATION FEES SHALL BE SUBJECT TO  THE  FOLLOWING  REQUIREMENTS:
(I)  A  MUNICIPAL CORPORATION MAY CHARGE AN APPLICATION FEE ONLY IF SUCH
FEE IS REQUIRED FOR SIMILAR TYPES OF COMMERCIAL DEVELOPMENT  WITHIN  THE
MUNICIPAL CORPORATION'S JURISDICTION; (II) A MUNICIPAL CORPORATION SHALL
ONLY  CHARGE A FEE FOR THE ACTUAL, DIRECT, AND REASONABLE COSTS INCURRED
BY THE MUNICIPAL CORPORATION RELATING TO THE GRANTING OR  PROCESSING  OF
AN  APPLICATION.    SUCH FEES SHALL BE REASONABLY RELATED IN TIME TO THE
INCURRING OF SUCH COSTS.   WHERE SUCH COSTS  ARE  ALREADY  RECOVERED  BY
EXISTING  FEES, RATES, OR TAXES PAID BY A WIRELESS PROVIDER, NO APPLICA-
TION FEE SHALL BE ASSESSED TO RECOVER SUCH COSTS; (III) A  FEE  MAY  NOT
INCLUDE:  A.  TRAVEL EXPENSES INCURRED BY A THIRD PARTY IN ITS REVIEW OF
AN APPLICATION; OR B. DIRECT PAYMENT OR  REIMBURSEMENT  OF  THIRD  PARTY

S. 7508--A                         13                         A. 9508--A

RATES  OR FEES CHARGED ON A CONTINGENCY BASIS OR A RESULT-BASED ARRANGE-
MENT; (IV) IN ANY CONTROVERSY CONCERNING THE APPROPRIATENESS OF  A  FEE,
THE  MUNICIPAL CORPORATION SHALL HAVE THE BURDEN OF PROVING THAT THE FEE
IS  REASONABLY  RELATED  TO  THE  ACTUAL,  DIRECT,  AND REASONABLE COSTS
INCURRED BY THE MUNICIPAL CORPORATION; (V) TOTAL APPLICATION FEES, WHERE
PERMITTED, SHALL NOT EXCEED THE LESSER OF  THE  AMOUNT  CHARGED  BY  THE
MUNICIPAL  CORPORATION FOR: A. A BUILDING PERMIT FOR ANY SIMILAR COMMER-
CIAL CONSTRUCTION, ACTIVITY, OR LAND USE DEVELOPMENT; OR B. ONE  HUNDRED
DOLLARS  EACH  FOR  UP TO FIVE SMALL WIRELESS FACILITIES ADDRESSED IN AN
APPLICATION AND FIFTY DOLLARS FOR EACH ADDITIONAL SMALL WIRELESS FACILI-
TY ADDRESSED IN THE APPLICATION.
  6. NO MUNICIPAL CORPORATION SHALL REQUIRE AN  APPLICATION  FOR:    (I)
ROUTINE  MAINTENANCE;  (II)  THE REPLACEMENT OF WIRELESS FACILITIES WITH
WIRELESS FACILITIES THAT ARE SUBSTANTIALLY SIMILAR OR THE SAME  SIZE  OR
SMALLER; OR (III) THE INSTALLATION, PLACEMENT, MAINTENANCE, OPERATION OR
REPLACEMENT  OF  MICRO  WIRELESS  FACILITIES  THAT  ARE STRUNG ON CABLES
BETWEEN EXISTING UTILITY POLES, IN COMPLIANCE WITH  THE  NATIONAL  ELEC-
TRICAL SAFETY CODE. A MUNICIPAL CORPORATION MAY REQUIRE A PERMIT TO WORK
WITHIN  THE  RIGHT  OF  WAY FOR SUCH ACTIVITIES, IF APPLICABLE. ANY SUCH
PERMITS SHALL BE SUBJECT TO THE REQUIREMENTS OF THIS SECTION.
  § 303. ACCESS TO MUNICIPAL CORPORATION STRUCTURES. 1.  COLLOCATION  OF
SMALL  WIRELESS FACILITIES ON OR ADJACENT TO MUNICIPAL CORPORATION POLES
AND UTILITY POLES FOR DESIGNATED SERVICES.  (I)  EXCLUSIVE  ARRANGEMENTS
PROHIBITED.    A PERSON OWNING OR CONTROLLING MUNICIPAL POLES OR UTILITY
POLES FOR DESIGNATED SERVICES MAY NOT ENTER INTO AN  EXCLUSIVE  ARRANGE-
MENT  WITH  ANY  PERSON  FOR  THE RIGHT TO ATTACH TO OR ADJACENT TO SUCH
POLES.
  (II) RATES. A. THE RATES AND FEES FOR COLLOCATIONS ON OR  ADJACENT  TO
MUNICIPAL  CORPORATION  POLES  OR  UTILITY POLES FOR DESIGNATED SERVICES
SHALL BE NONDISCRIMINATORY REGARDLESS OF THE SERVICES  PROVIDED  BY  THE
COLLOCATING  PERSON;  B. THE RATE TO COLLOCATE ON OR ADJACENT TO UTILITY
POLES FOR DESIGNATED SERVICES MAY NOT EXCEED THE ANNUAL  RECURRING  RATE
THAT WOULD BE PERMITTED UNDER RULES ADOPTED BY THE FCC UNDER 47 U.S.C. §
224(E) IF THE RATES WERE REGULATED BY THE FCC OR TWENTY DOLLARS PER YEAR
PER  WOODEN  UTILITY  POLE  OR  TWO  HUNDRED DOLLARS PER YEAR PER METAL,
CONCRETE, OR FIBERGLASS UTILITY POLE, WHICHEVER IS LESS; C. THE RATE  TO
COLLOCATE  ON  MUNICIPAL  CORPORATION  POLES  SHALL  RECOVER THE ACTUAL,
DIRECT, AND REASONABLE COSTS RELATED TO THE APPLICANT'S APPLICATION  FOR
AND  USE OF SPACE ON THE MUNICIPAL CORPORATION POLE; D. THE TOTAL ANNUAL
RATE FOR COLLOCATIONS AND ANY ACTIVITIES RELATED  TO  SUCH  COLLOCATIONS
SHALL  NOT  EXCEED  THE  LESSER  OF ACTUAL, DIRECT, AND REASONABLE COSTS
RELATED TO THE COLLOCATION ON OR ADJACENT TO THE POLE OR TWENTY  DOLLARS
PER  YEAR  PER  WOODEN  UTILITY POLE OR TWO HUNDRED DOLLARS PER YEAR PER
METAL, CONCRETE, OR FIBERGLASS UTILITY POLE, WHICHEVER IS  LESS;  E.  IN
ANY CONTROVERSY CONCERNING THE APPROPRIATENESS OF A RATE FOR A MUNICIPAL
CORPORATION'S  POLE,  THE MUNICIPAL CORPORATION SHALL HAVE THE BURDEN OF
PROVING THAT THE RATES ARE REASONABLY RELATED TO THE ACTUAL, DIRECT, AND
REASONABLE COSTS INCURRED FOR USE OF SPACE ON THE POLE FOR SUCH  PERIOD;
F.    SHOULD A MUNICIPAL CORPORATION, MUNICIPALLY-OWNED OR OPERATED-PER-
SON, PUBLIC UTILITY DISTRICT,  OR  COOPERATIVE  HAVE  AN  EXISTING  POLE
ATTACHMENT  RATE,  FEE,  OR  OTHER  TERM  THAT  DOES NOT COMPLY WITH THE
REQUIREMENTS OF THIS SECTION, THE  MUNICIPAL  CORPORATION,  MUNICIPALLY-
OWNED OR OPERATED PERSON, PUBLIC UTILITY DISTRICT, OR COOPERATIVE SHALL,
NOT  LATER THAN SIX MONTHS FOLLOWING THE EFFECTIVE DATE OF THIS ARTICLE,
REFORM SUCH RATE, FEE, OR TERM IN COMPLIANCE WITH THIS SUBDIVISION.

S. 7508--A                         14                         A. 9508--A

  (III) RATES, FEES, AND TERMS TO BE OFFERED. PERSONS OWNING OR CONTROL-
LING MUNICIPAL  CORPORATION  POLES  AND  UTILITY  POLES  FOR  DESIGNATED
SERVICES  SHALL  OFFER RATES, FEES, AND OTHER TERMS THAT COMPLY WITH THE
PROVISION SET FORTH IN THIS SECTION WITHIN THE LATER OF  SIX  MONTHS  OF
THE  EFFECTIVE  DATE  OF  THIS ARTICLE OR THREE MONTHS AFTER RECEIVING A
REQUEST TO COLLOCATE ITS FIRST SMALL WIRELESS FACILITY  ON  A  MUNICIPAL
CORPORATION  POLE  OR  A  UTILITY  POLE FOR DESIGNATED SERVICES OWNED OR
CONTROLLED BY A MUNICIPAL CORPORATION.
  2. COLLOCATION  ON  OR  ADJACENT  TO  MUNICIPAL  CORPORATION  WIRELESS
SUPPORT STRUCTURES AND UTILITY POLES OUTSIDE THE RIGHT OF WAY. A MUNICI-
PAL CORPORATION SHALL AUTHORIZE THE COLLOCATION OF SMALL WIRELESS FACIL-
ITIES  AND  MICRO WIRELESS FACILITIES ON OR ADJACENT TO WIRELESS SUPPORT
STRUCTURES AND UTILITY POLES OWNED OR CONTROLLED BY A  MUNICIPAL  CORPO-
RATION  THAT  ARE NOT LOCATED WITHIN THE RIGHT OF WAY TO THE SAME EXTENT
THE MUNICIPAL CORPORATION PERMITS ACCESS TO SUCH  STRUCTURES  FOR  OTHER
COMMERCIAL  PROJECTS  OR  USES.  SUCH  COLLOCATIONS  SHALL BE SUBJECT TO
REASONABLE AND NONDISCRIMINATORY RATES, FEES, AND TERMS AS  PROVIDED  IN
AN  AGREEMENT BETWEEN THE MUNICIPAL CORPORATION AND THE WIRELESS PROVID-
ER.
  § 304. LOCAL AUTHORITY. SUBJECT TO THE PROVISIONS OF THIS ARTICLE  AND
APPLICABLE FEDERAL LAW, A MUNICIPAL CORPORATION MAY CONTINUE TO EXERCISE
ZONING,  LAND USE, PLANNING AND PERMITTING AUTHORITY WITHIN ITS TERRITO-
RIAL BOUNDARIES, INCLUDING WITH RESPECT TO  WIRELESS  SUPPORT  STRUCTURE
AND  UTILITY  POLES;  EXCEPT THAT NO MUNICIPAL CORPORATION SHALL HAVE OR
EXERCISE ANY JURISDICTION OR AUTHORITY  OVER  THE  DESIGN,  ENGINEERING,
CONSTRUCTION,  INSTALLATION, OR OPERATION OF ANY SMALL WIRELESS FACILITY
OR MICRO WIRELESS FACILITY LOCATED IN AN INTERIOR STRUCTURE OR UPON  THE
SITE OF ANY CAMPUS, STADIUM, OR ATHLETIC FACILITY NOT OTHERWISE OWNED OR
CONTROLLED  BY  THE  MUNICIPAL  CORPORATION,  OTHER  THAN TO COMPLY WITH
APPLICABLE CODES. NOTHING IN THIS ARTICLE AUTHORIZES THE  STATE  OR  ANY
POLITICAL  SUBDIVISION,  INCLUDING  A  MUNICIPAL CORPORATION, TO REQUIRE
WIRELESS FACILITY DEPLOYMENT OR TO REGULATE WIRELESS SERVICES.
  § 305. DISPUTE RESOLUTION. COURTS OF COMPETENT JURISDICTION SHALL HAVE
JURISDICTION TO DETERMINE ALL DISPUTES ARISING UNDER THIS ARTICLE.
  § 306. INDEMNIFICATION.   NO MUNICIPAL  CORPORATION  SHALL  REQUIRE  A
WIRELESS  PROVIDER  TO  INDEMNIFY AND HOLD THE MUNICIPAL CORPORATION AND
ITS OFFICERS AND EMPLOYEES HARMLESS AGAINST ANY CLAIMS, LAWSUITS,  JUDG-
MENTS,  COSTS,  LIENS,  LOSSES, EXPENSES OR FEES, EXCEPT WHEN A COURT OF
COMPETENT JURISDICTION HAS FOUND THAT THE  NEGLIGENCE  OF  THE  WIRELESS
PROVIDER WHILE INSTALLING, REPAIRING OR MAINTAINING CAUSED THE HARM THAT
CREATED   SUCH   CLAIMS,  LAWSUITS,  JUDGMENTS,  COSTS,  LIENS,  LOSSES,
EXPENSES, OR FEES OR TO REQUIRE A WIRELESS PROVIDER TO OBTAIN  INSURANCE
NAMING  THE MUNICIPAL CORPORATION OR ITS OFFICERS AND EMPLOYEES AN ADDI-
TIONAL INSURED AGAINST ANY OF THE FOREGOING.
  § 4. This act shall take effect immediately; provided,  however,  that
section  three  of this act shall take effect on the thirtieth day after
it shall have become a law.

                                 PART G

  Section 1. Paragraph (c) of subdivision 3 of section 501 of the  vehi-
cle  and  traffic  law,  as added by chapter 449 of the laws of 1989, is
amended to read as follows:
  (c) in the city of New York, driving shall be prohibited  EXCEPT  FROM
FIVE O'CLOCK IN THE MORNING TO NINE O'CLOCK IN THE EVENING WHEN ACCOMPA-
NIED  BY  A  PERSON  AT  LEAST TWENTY-ONE YEARS OF AGE AND WHO IS A DULY

S. 7508--A                         15                         A. 9508--A

LICENSED PARENT, GUARDIAN, PERSON IN A POSITION OF LOCO PARENTIS TO  THE
LICENSEE,  DRIVER  EDUCATION  TEACHER, OR DRIVING SCHOOL INSTRUCTOR WHEN
OPERATING A VEHICLE EQUIPPED WITH DUAL BRAKE CONTROLS.
  § 2. Subdivision 2 of section 510-c of the vehicle and traffic law, as
amended  by  section  5  of part B of chapter 55 of the laws of 2014, is
amended to read as follows:
  2. For purposes of this section, the term "serious traffic  violation"
shall  mean operating a motor vehicle in violation of any of the follow-
ing provisions of this chapter:  articles  twenty-five  and  twenty-six;
subdivision  one  of  section  six  hundred;  section  six  hundred one;
sections eleven hundred eleven, eleven hundred seventy,  eleven  hundred
seventy-two and eleven hundred seventy-four; subdivisions (a), (b), (c),
(d)  and  (f)  of  section  eleven  hundred  eighty,  provided  that the
violation involved ten or more  miles  per  hour  over  the  established
limit;  section eleven hundred eighty-two; subdivision [three-a] THREE-B
of section twelve hundred twenty-nine-c for violations involving use  of
safety  belts  or seats by a child under the age of sixteen; and section
twelve hundred twelve of this chapter.
  § 3. Subdivision 3 of section 1225-c of the vehicle and  traffic  law,
as  added by chapter 69 of the laws of 2001, is amended and a new subdi-
vision 2-a is added to read as follows:
  2-A. NO PERSON UNDER EIGHTEEN YEARS OF AGE SHALL OPERATE A MOTOR VEHI-
CLE UPON A PUBLIC HIGHWAY WHILE ENGAGING IN A CALL WITH A  HAND-HELD  OR
HANDS-FREE  MOBILE  TELEPHONE.  FOR  THE  PURPOSES  OF THIS SUBDIVISION,
ENGAGING IN A CALL SHALL INCLUDE MAKING OR RECEIVING A CALL WITH A HAND-
HELD OR HANDS-FREE MOBILE TELEPHONE.
  3. [Subdivision] SUBDIVISIONS two AND TWO-A of this section shall  not
apply  to  (a)  the  use  of  a mobile telephone for the sole purpose of
communicating with any of the following  regarding  an  emergency  situ-
ation: an emergency response operator; a hospital, physician's office or
health  clinic;  an  ambulance  company  or  corps;  a  fire department,
district or company; or a police department, (b) any  of  the  following
persons  while  in  the  performance  of their official duties: a police
officer or peace officer; a member of a  fire  department,  district  or
company;  or  the operator of an authorized emergency vehicle as defined
in section one hundred one of this chapter, or (c) EXCEPT AS APPLIED  TO
PERSONS  UNDER THE AGE OF EIGHTEEN YEARS, the use of a hands-free mobile
telephone.
  § 4. Paragraphs (a) and (b) of subdivision 2 of section 1225-d of  the
vehicle and traffic law, as amended by section 8 of part C of chapter 58
of the laws of 2013, are amended to read as follows:
  (a) "Portable electronic device" shall mean any hand-held mobile tele-
phone,  as  defined by subdivision one of section twelve hundred twenty-
five-c of this  article,  personal  digital  assistant  (PDA),  handheld
device  with  mobile  data  access,  laptop  computer,  pager, broadband
personal communication  device,  two-way  messaging  device,  electronic
game,  or  portable computing device, or any other [electronic] PERSONAL
WIRELESS COMMUNICATIONS device when used to input, write, send, receive,
or read text OR IMAGES for present or  future  communication,  INCLUDING
DOING SO FOR THE PURPOSE OF SMS TEXTING, EMAILING, INSTANT MESSAGING, OR
ENGAGING  IN  ANY  OTHER FORM OF ELECTRONIC DATA RETRIEVAL OR ELECTRONIC
DATA COMMUNICATION.
  (b) "Using" shall mean holding OR MAKING CONTACT WITH a portable elec-
tronic device [while] FOR THE PURPOSE OF viewing, taking or transmitting
images, playing games, or, for the purpose of present or future communi-
cation: performing a command or request to access a world wide web page,

S. 7508--A                         16                         A. 9508--A

composing, sending, reading, viewing, accessing, browsing, transmitting,
saving or retrieving e-mail, text messages, instant messages,  or  other
electronic data.
  § 5. Subdivision 2 of section 1225-d of the vehicle and traffic law is
amended by adding a new paragraph (e) to read as follows:
  (E)  "PERSONAL  WIRELESS  COMMUNICATIONS  DEVICE"  (I)  MEANS A DEVICE
THROUGH  WHICH  PERSONAL  WIRELESS  SERVICES  (AS  DEFINED  IN   SECTION
332(C)(7)(C)(I)   OF   THE   COMMUNICATIONS   ACT  OF  1934  (47  U.S.C.
332(C)(7)(C)(I))) ARE TRANSMITTED; AND
  (II) DOES NOT INCLUDE A GLOBAL NAVIGATION  SATELLITE  SYSTEM  RECEIVER
USED FOR POSITIONING, EMERGENCY NOTIFICATION, OR NAVIGATION PURPOSES.
  §  6.  Subdivision 4 of section 1225-d of the vehicle and traffic law,
as amended by section 10 of part C of chapter 58 of the laws of 2013, is
amended to read as follows:
  4. A person who  [holds]  USES  a  portable  electronic  device  in  a
conspicuous  manner while operating a motor vehicle or while operating a
commercial motor vehicle on a public highway including while temporarily
stationary because of traffic, a traffic control device, or other momen-
tary delays but not including when  such  commercial  motor  vehicle  is
stopped  at  the  side  of, or off, a public highway in a location where
such vehicle is not otherwise prohibited from  stopping  by  law,  rule,
regulation  or  any  lawful  order  or  direction of a police officer is
presumed to be using such device,  except  that  a  person  operating  a
commercial  motor  vehicle while using a portable electronic device when
such vehicle is stopped at the side of, or off, a public  highway  in  a
location where such vehicle is not otherwise prohibited from stopping by
law, rule, regulation or any lawful order or direction of a police offi-
cer  shall  not  be  presumed  to  be using such device. The presumption
established by this subdivision is rebuttable  by  evidence  tending  to
show  that  the  operator was not using the device within the meaning of
this section.
  § 7. Subdivision 3 of section 1229-c of the vehicle and  traffic  law,
as  added  by  chapter  365  of  the laws of 1984, is amended to read as
follows:
  3. No person shall operate a  motor  vehicle  unless  such  person  is
restrained  by  a  safety  belt  approved by the commissioner. No person
sixteen years of age or over shall be a passenger in [the front seat of]
a motor vehicle unless such  person  is  restrained  by  a  safety  belt
approved by the commissioner.
  §  8. Subdivision 13 of section 1229-c of the vehicle and traffic law,
as amended by chapter 20 of the laws of 2008,  is  amended  to  read  as
follows:
  13.  Notwithstanding  the  provisions  of  subdivision  four  of  this
section, no person shall operate a school bus for  which  there  are  no
applicable  federal school bus safety standards unless all occupants are
restrained by a safety belt approved by the commissioner  or,  regarding
occupants  age four or older but under age [seven] EIGHT, are restrained
pursuant to subdivision one or two of this section.
  § 9. The vehicle and traffic law is amended by adding  a  new  section
1170-a to read as follows:
  § 1170-A. OWNER LIABILITY FOR FAILURE OF OPERATOR TO OBEY SIGNAL INDI-
CATING  APPROACH OF TRAIN. (A) 1. NOTWITHSTANDING ANY OTHER PROVISION OF
LAW, ANY POLITICAL SUBDIVISION AS DEFINED HEREIN  IS  HEREBY  AUTHORIZED
AND  EMPOWERED  TO  ADOPT AND AMEND A LOCAL LAW, ORDINANCE OR RESOLUTION
ESTABLISHING A DEMONSTRATION PROGRAM IMPOSING MONETARY LIABILITY ON  THE
OWNER  OF  A  VEHICLE  FOR FAILURE OF AN OPERATOR THEREOF TO COMPLY WITH

S. 7508--A                         17                         A. 9508--A

SECTION ELEVEN HUNDRED  SEVENTY  OF  THIS  ARTICLE.  SUCH  DEMONSTRATION
PROGRAM  SHALL  EMPOWER  A POLITICAL SUBDIVISION WITH THE CONCURRENCE OF
THE SUBJECT COMMUTER RAILROAD TO  INSTALL  AND  OPERATE  RAILROAD  GRADE
CROSSING PHOTO VIOLATION-MONITORING DEVICES AT ANY RAILROAD GRADE CROSS-
ING  LOCATED  WITHIN ITS JURISDICTION.   THE COST OF THE PHOTO VIOLATION
MONITORING DEVICES MAY BE BORNE BY THE POLITICAL SUBDIVISION, A COMMUTER
RAILROAD OPERATING WITHIN SUCH POLITICAL SUBDIVISION, OR  A  COMBINATION
OF  BOTH  SUCH POLITICAL SUBDIVISION AND COMMUTER RAILROAD PURSUANT TO A
MEMORANDUM OF UNDERSTANDING.
  2. SUCH DEMONSTRATION PROGRAM SHALL UTILIZE NECESSARY TECHNOLOGIES  TO
ENSURE,  TO  THE  EXTENT  PRACTICABLE, THAT PHOTOGRAPHS PRODUCED BY SUCH
RAILROAD GRADE CROSSING PHOTO  VIOLATION-MONITORING  SYSTEMS  SHALL  NOT
INCLUDE  IMAGES THAT IDENTIFY THE DRIVER, THE PASSENGERS OR THE CONTENTS
OF THE VEHICLE. NOTWITHSTANDING ANY FOREGOING, NO  NOTICE  OF  LIABILITY
ISSUED  PURSUANT  TO  THIS  SECTION  SHALL BE DISMISSED SOLELY BECAUSE A
PHOTOGRAPH OR PHOTOGRAPHS ALLOW FOR THE IDENTIFICATION OF  THE  CONTENTS
OF  A  VEHICLE,  PROVIDED  THAT  SUCH  POLITICAL  SUBDIVISION HAS MADE A
REASONABLE EFFORT TO COMPLY WITH THE PROVISIONS OF THIS PARAGRAPH.
  (B) WITHIN THE JURISDICTION OF ANY SUCH  POLITICAL  SUBDIVISION  WHICH
HAS ADOPTED A LOCAL LAW, ORDINANCE OR RESOLUTION PURSUANT TO SUBDIVISION
(A) OF THIS SECTION, THE OWNER OF A VEHICLE SHALL BE LIABLE FOR A PENAL-
TY IMPOSED PURSUANT TO THIS SECTION IF SUCH VEHICLE WAS USED OR OPERATED
WITH  THE  PERMISSION  OF THE OWNER, EXPRESS OR IMPLIED, IN VIOLATION OF
SECTION ELEVEN HUNDRED SEVENTY OF THIS ARTICLE, AND  SUCH  VIOLATION  IS
EVIDENCE  BY  INFORMATION  OBTAINED FROM A RAILROAD GRADE CROSSING PHOTO
VIOLATION-MONITORING SYSTEM; PROVIDED, HOWEVER, THAT NO OWNER OF A VEHI-
CLE SHALL BE LIABLE FOR A PENALTY IMPOSED PURSUANT TO THIS SECTION WHERE
THE OPERATOR OF SUCH  VEHICLE  HAS  BEEN  CONVICTED  OF  THE  UNDERLYING
VIOLATION OF SECTION ELEVEN HUNDRED SEVENTY OF THIS ARTICLE.
  (C)  FOR  PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANING:
  1. "OWNER" SHALL HAVE THE MEANING PROVIDED IN ARTICLE  TWO-B  OF  THIS
CHAPTER;
  2.  "RAILROAD  GRADE CROSSING PHOTO VIOLATION-MONITORING SYSTEM" SHALL
MEAN A VEHICLE SENSOR INSTALLED TO WORK IN CONJUNCTION WITH  A  RAILROAD
SIGN OR SIGNAL WHICH AUTOMATICALLY PRODUCES TWO OR MORE PHOTOGRAPHS, TWO
OR  MORE  MICROPHOTOGRAPHS, A VIDEOTAPE OR OTHER RECORDED IMAGES OF EACH
VEHICLE AT THE TIME IT IS USED OR OPERATED IN VIOLATION OF SECTION ELEV-
EN HUNDRED SEVENTY OF THIS ARTICLE;
  3. "POLITICAL SUBDIVISION" SHALL MEAN A COUNTY, CITY, TOWN, OR VILLAGE
LOCATED IN THE METROPOLITAN COMMUTER TRANSPORTATION  DISTRICT,  AS  SUCH
DISTRICT  IS  DEFINED  IN SECTION TWELVE HUNDRED SIXTY-TWO OF THE PUBLIC
AUTHORITIES LAW; AND
  4. "COMMUTER RAILROAD" SHALL MEAN A RAILROAD OWNED AND OPERATED BY THE
METROPOLITAN TRANSPORTATION AUTHORITY WITHIN THE  METROPOLITAN  COMMUTER
TRANSPORTATION  DISTRICT,  AS  SUCH  TERM  IS  DEFINED IN SECTION TWELVE
HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW.
  (D) A CERTIFICATE, SWORN TO OR AFFIRMED BY A  TECHNICIAN  EMPLOYED  BY
THE  COMMUTER  RAILROAD  OR  BY  THE  POLITICAL SUBDIVISION IN WHICH THE
CHARGED  VIOLATION  OCCURRED,  OR  A  FACSIMILE  THEREOF,   BASED   UPON
INSPECTION OF PHOTOGRAPHS, MICROPHOTOGRAPHS, VIDEOTAPE OR OTHER RECORDED
IMAGES  PRODUCED BY A RAILROAD GRADE CROSSING PHOTO VIOLATION-MONITORING
SYSTEM, SHALL BE PRIMA FACIE EVIDENCE OF THE  FACTS  CONTAINED  THEREIN.
ANY  PHOTOGRAPHS,  MICROPHOTOGRAPHS,  VIDEOTAPE OR OTHER RECORDED IMAGES
EVIDENCING SUCH A VIOLATION SHALL BE AVAILABLE  FOR  INSPECTION  IN  ANY

S. 7508--A                         18                         A. 9508--A

PROCEEDING  TO ADJUDICATE THE LIABILITY FOR SUCH VIOLATION PURSUANT TO A
LOCAL LAW, ORDINANCE OR RESOLUTION ADOPTED PURSUANT TO THIS SECTION.
  (E)  AN OWNER LIABLE FOR A VIOLATION OF SECTION ELEVEN HUNDRED SEVENTY
OF THIS ARTICLE PURSUANT TO A LOCAL LAW, ORDINANCE OR RESOLUTION ADOPTED
PURSUANT TO THIS SECTION SHALL  BE  LIABLE  FOR  MONETARY  PENALTIES  IN
ACCORDANCE  WITH  A SCHEDULE OF FINES AND PENALTIES TO BE ESTABLISHED IN
SUCH LOCAL LAW, ORDINANCE OR RESOLUTION.  THE  LIABILITY  OF  THE  OWNER
PURSUANT  TO THIS SECTION SHALL NOT EXCEED TWO HUNDRED FIFTY DOLLARS FOR
EACH VIOLATION; PROVIDED, HOWEVER, THAT AN  ADJUDICATING  AUTHORITY  MAY
PROVIDE  FOR  AN  ADDITIONAL  PENALTY NOT IN EXCESS OF FIFTY DOLLARS FOR
EACH VIOLATION FOR THE FAILURE TO RESPOND TO A NOTICE OF LIABILITY WITH-
IN THE PRESCRIBED PERIOD OF TIME.
  (F) AN IMPOSITION OF LIABILITY UNDER A LOCAL LAW, ORDINANCE OR  RESOL-
UTION  ADOPTED PURSUANT TO THIS SECTION SHALL NOT BE DEEMED A CONVICTION
AS AN OPERATOR AND SHALL NOT BE MADE PART OF THE OPERATING RECORD OF THE
PERSON UPON WHOM SUCH LIABILITY IS IMPOSED NOR  SHALL  IT  BE  USED  FOR
INSURANCE PURPOSES IN THE PROVISION OF MOTOR VEHICLE INSURANCE COVERAGE.
  (G) 1. A NOTICE OF LIABILITY SHALL BE SENT BY FIRST CLASS MAIL TO EACH
PERSON ALLEGED TO BE LIABLE AS AN OWNER FOR A VIOLATION OF SECTION ELEV-
EN  HUNDRED  SEVENTY  OF THIS ARTICLE PURSUANT TO THIS SECTION. PERSONAL
DELIVERY ON THE OWNER SHALL NOT  BE  REQUIRED.  A  MANUAL  OR  AUTOMATIC
RECORD  OF  MAILING PREPARED IN THE ORDINARY COURSE OF BUSINESS SHALL BE
PRIMA FACIE EVIDENCE OF THE FACTS CONTAINED THEREIN.
  2. A NOTICE OF LIABILITY SHALL CONTAIN THE NAME  AND  ADDRESS  OF  THE
PERSON ALLEGED TO BE LIABLE AS AN OWNER FOR A VIOLATION OF SECTION ELEV-
EN  HUNDRED SEVENTY OF THIS ARTICLE PURSUANT TO THIS SECTION, THE REGIS-
TRATION NUMBER OF THE VEHICLE INVOLVED IN SUCH VIOLATION,  THE  LOCATION
WHERE SUCH VIOLATION TOOK PLACE, THE DATE AND TIME OF SUCH VIOLATION AND
THE  IDENTIFICATION NUMBER OF THE CAMERA WHICH RECORDED THE VIOLATION OR
OTHER DOCUMENT LOCATOR NUMBER.
  3. THE NOTICE OF LIABILITY  SHALL  CONTAIN  INFORMATION  ADVISING  THE
PERSON CHARGED OF THE MANNER AND THE TIME IN WHICH HE OR SHE MAY CONTEST
THE LIABILITY ALLEGED IN THE NOTICE. SUCH NOTICE OF LIABILITY SHALL ALSO
CONTAIN  A  WARNING TO ADVISE THE PERSON CHARGED THAT FAILURE TO CONTEST
IN THE MANNER AND TIME PROVIDED SHALL BE DEEMED AN ADMISSION OF  LIABIL-
ITY AND THAT A DEFAULT JUDGMENT MAY BE ENTERED THEREON.
  4.  THE  NOTICE OF LIABILITY SHALL BE PREPARED AND MAILED BY THE POLI-
TICAL SUBDIVISION, OR BY ANY OTHER ENTITY AUTHORIZED BY  SUCH  POLITICAL
SUBDIVISION TO PREPARE AND MAIL SUCH NOTIFICATION OF VIOLATION.
  (H)  ADJUDICATION OF ANY LIABILITY IMPOSED UPON OWNERS BY THIS SECTION
SHALL BE BY A TRAFFIC VIOLATIONS BUREAU ESTABLISHED PURSUANT TO  SECTION
THREE  HUNDRED SEVENTY OF THE GENERAL MUNICIPAL LAW OR, IF THERE BY NONE
BY THE COURT HAVING JURISDICTION OVER TRAFFIC INFRACTIONS,  EXCEPT  THAT
ANY  CITY WHICH HAS ESTABLISHED OR DESIGNATED AN ADMINISTRATIVE TRIBUNAL
TO HEAR AND DETERMINE OWNER LIABILITY ESTABLISHED BY ARTICLE TWENTY-FOUR
OF THE VEHICLE AND TRAFFIC  LAW  FOR  FAILURE  TO  COMPLY  WITH  TRAFFIC
CONTROL  INDICATIONS SHALL USE SUCH TRIBUNAL TO ADJUDICATE THE LIABILITY
IMPOSED BY THIS SECTION.
  (I) IF AN OWNER RECEIVES  A  NOTICE  OF  LIABILITY  PURSUANT  TO  THIS
SECTION  FOR  ANY TIME PERIOD DURING WHICH THE VEHICLE WAS REPORTED TO A
LAW ENFORCEMENT AGENCY AS HAVING  BEEN  STOLEN,  IT  SHALL  BE  A  VALID
DEFENSE  TO AN ALLEGATION OF LIABILITY FOR A VIOLATION OF SECTION ELEVEN
HUNDRED SEVENTY OF THIS ARTICLE PURSUANT TO THIS SECTION THAT THE  VEHI-
CLE  HAS  BEEN  REPORTED  TO  THE POLICE AS STOLEN PRIOR TO THE TIME THE
VIOLATION OCCURRED AND HAD NOT BEEN RECOVERED BY SUCH TIME. FOR PURPOSES
OF ASSERTING THE DEFENSE PROVIDED BY THIS SUBDIVISION IT SHALL BE SUFFI-

S. 7508--A                         19                         A. 9508--A

CIENT THAT A CERTIFIED COPY OF A POLICE REPORT ON THE STOLEN VEHICLE  BE
SENT  BY  FIRST  CLASS  MAIL TO THE COURT HAVING JURISDICTION OR PARKING
VIOLATIONS BUREAU.
  (J) 1. IN SUCH POLITICAL SUBDIVISION WHERE THE ADJUDICATION OF LIABIL-
ITY  IMPOSED  UPON  OWNERS PURSUANT TO THIS SECTION IS BY A COURT HAVING
JURISDICTION, AND AN OWNER WHO IS A LESSOR  OF  A  VEHICLE  TO  WHICH  A
NOTICE  OF  LIABILITY  WAS  ISSUED  PURSUANT  TO SUBDIVISION (G) OF THIS
SECTION SHALL NOT BE LIABLE FOR THE VIOLATION OF SECTION ELEVEN  HUNDRED
SEVENTY  OF  THIS  ARTICLE,  PROVIDED  THAT HE OR SHE SENDS TO THE COURT
HAVING JURISDICTION OF A  COPY  OF  THE  RENTAL,  LEASE  OR  OTHER  SUCH
CONTRACT  DOCUMENT  COVERING  SUCH VEHICLE ON THE DATE OF THE VIOLATION,
WITH THE NAME AND ADDRESS OF THE LESSEE CLEARLY LEGIBLE, WITHIN  THIRTY-
SEVEN DAYS AFTER RECEIVING NOTICE FROM THE COURT OF THE DATE AND TIME OF
SUCH  VIOLATION,  TOGETHER  WITH  THE OTHER INFORMATION CONTAINED IN THE
ORIGINAL NOTICE OF LIABILITY. FAILURE TO SEND  SUCH  INFORMATION  WITHIN
SUCH  THIRTY-SEVEN DAY TIME PERIOD SHALL RENDER THE OWNER LIABLE FOR THE
PENALTY PRESCRIBED BY THIS SECTION. WHERE THE LESSOR COMPLIES  WITH  THE
PROVISIONS  OF THIS PARAGRAPH, THE LESSEE OF SUCH VEHICLE ON THE DATE OF
SUCH VIOLATION SHALL BE DEEMED TO BE  THE  OWNER  OF  SUCH  VEHICLE  FOR
PURPOSES  OF  THIS  SECTION,  SHALL  BE  SUBJECT  TO  LIABILITY  FOR THE
VIOLATION OF SECTION ELEVEN HUNDRED SEVENTY OF THIS ARTICLE PURSUANT  TO
SUBDIVISION (G) OF THIS SECTION.
  2.  (I)  IN ANY POLITICAL SUBDIVISION WHICH HAS AUTHORIZED THE ADJUDI-
CATION OF LIABILITY IMPOSED UPON OWNERS BY THIS  SECTION  BY  A  PARKING
VIOLATIONS  BUREAU,  AN  OWNER  WHO  IS A LESSOR OF A VEHICLE TO WHICH A
NOTICE OF LIABILITY WAS ISSUED  PURSUANT  TO  SUBDIVISION  (G)  OF  THIS
SECTION  SHALL NOT BE LIABLE FOR THE VIOLATION OF SECTION ELEVEN HUNDRED
SEVENTY OF THIS ARTICLE, PROVIDED THAT:
  (A) PRIOR TO THE VIOLATION, THE LESSOR HAS FILED WITH  THE  BUREAU  IN
ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION TWO HUNDRED THIRTY-NINE OF
THIS CHAPTER; AND
  (B) WITHIN THIRTY-SEVEN DAYS AFTER RECEIVING NOTICE FROM THE BUREAU OF
THE DATE AND TIME OF A LIABILITY, TOGETHER WITH  THE  OTHER  INFORMATION
CONTAINED IN THE ORIGINAL NOTICE OF LIABILITY, THE LESSOR SUBMITS TO THE
BUREAU THE CORRECT NAME AND ADDRESS OF THE LESSEE OF THE VEHICLE IDENTI-
FIED  IN THE NOTICE OF LIABILITY AT THE TIME OF SUCH VIOLATION, TOGETHER
WITH SUCH OTHER ADDITIONAL INFORMATION CONTAINED IN THE RENTAL, LEASE OR
OTHER CONTRACT DOCUMENT, AS MAY BE REASONABLY  REQUIRED  BY  THE  BUREAU
PURSUANT TO REGULATIONS THAT MAY BE PROMULGATED FOR SUCH PURPOSE.
  (II)  FAILURE  TO  COMPLY  WITH CLAUSE (B) OF SUBPARAGRAPH (I) OF THIS
PARAGRAPH SHALL RENDER THE OWNER LIABLE FOR THE  PENALTY  PRESCRIBED  IN
THIS SECTION.
  (III) WHERE THE LESSOR COMPLIES WITH THE PROVISIONS OF THIS PARAGRAPH,
THE LESSEE OF SUCH VEHICLE ON THE DATE OF SUCH VIOLATION SHALL BE DEEMED
TO  BE  THE OWNER OF SUCH VEHICLE FOR PURPOSES OF THIS SECTION, SHALL BE
SUBJECT TO LIABILITY FOR SUCH VIOLATION PURSUANT  TO  THIS  SECTION  AND
SHALL  BE  SENT A NOTICE OF LIABILITY PURSUANT TO THIS SECTION AND SHALL
BE SENT A NOTICE OF  LIABILITY  PURSUANT  TO  SUBDIVISION  (G)  OF  THIS
SECTION.
  (K)  1.  IF THE OWNER LIABLE FOR A VIOLATION OF SECTION ELEVEN HUNDRED
SEVENTY OF THIS ARTICLE PURSUANT TO THIS SECTION WAS NOT THE OPERATOR OF
THE VEHICLE AT THE TIME OF THE VIOLATION,  THE  OWNER  MAY  MAINTAIN  AN
ACTION FOR INDEMNIFICATION AGAINST THE OPERATOR.
  2.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NO OWNER OF A
VEHICLE SHALL BE SUBJECT TO A MONETARY FINE  IMPOSED  PURSUANT  TO  THIS
SECTION IF THE OPERATOR OF SUCH VEHICLE WAS OPERATING SUCH VEHICLE WITH-

S. 7508--A                         20                         A. 9508--A

OUT  THE CONSENT OF THE OWNER AT THE TIME SUCH OPERATOR FAILED TO COMPLY
WITH THE PROVISIONS OF SECTION ELEVEN HUNDRED SEVENTY OF  THIS  ARTICLE.
FOR  PURPOSES  OF THIS SUBDIVISION THERE SHALL BE A PRESUMPTION THAT THE
OPERATOR  OF SUCH VEHICLE WAS OPERATING SUCH VEHICLE WITH THE CONSENT OF
THE OWNER AT THE TIME SUCH OPERATOR FAILED TO COMPLY WITH THE PROVISIONS
OF SECTION ELEVEN HUNDRED SEVENTY OF THIS ARTICLE.
  (L) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE  LIABILITY
OF  AN OPERATOR OF A VEHICLE FOR ANY VIOLATION OF SECTION ELEVEN HUNDRED
SEVENTY OF THIS ARTICLE.
  (M) IN ANY SUCH POLITICAL SUBDIVISION  WHICH  ADOPTS  A  DEMONSTRATION
PROGRAM  PURSUANT  TO  SUBDIVISION  (A)  OF THIS SECTION, SUCH POLITICAL
SUBDIVISION SHALL SUBMIT AN ANNUAL REPORT ON THE RESULTS OF THE USE OF A
RAILROAD GRADE CROSSING PHOTO VIOLATION-MONITORING SYSTEM TO THE  GOVER-
NOR, THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEM-
BLY  ON OR BEFORE JUNE FIRST, TWO THOUSAND EIGHTEEN AND ON THE SAME DATE
IN EACH SUCCEEDING YEAR IN WHICH THE DEMONSTRATION PROGRAM IS  OPERABLE.
SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO:
  1.  A  DESCRIPTION OF THE LOCATION WHERE RAILROAD GRADE CROSSING PHOTO
VIOLATION-MONITORING SYSTEM WAS USED;
  2. THE AGGREGATE NUMBER, TYPE AND SEVERITY OF  ACCIDENTS  REPORTED  AT
INTERSECTIONS WHERE A RAILROAD GRADE CROSSING PHOTO VIOLATION-MONITORING
SYSTEM  IS  USED FOR THE YEAR PRECEDING THE INSTALLATION OF SUCH SYSTEM,
TO THE EXTENT THE INFORMATION IS MAINTAINED BY THE DEPARTMENT;
  3. THE AGGREGATE NUMBER, TYPE AND SEVERITY OF  ACCIDENTS  REPORTED  AT
INTERSECTIONS WHERE A RAILROAD GRADE CROSSING PHOTO VIOLATION-MONITORING
SYSTEM  IS  USED,  TO  THE  EXTENT  THE INFORMATION IS MAINTAINED BY THE
DEPARTMENT;
  4. THE NUMBER OF VIOLATIONS RECORDED  AT  EACH  INTERSECTION  WHERE  A
RAILROAD GRADE CROSSING PHOTO VIOLATION-MONITORING SYSTEM IS USED AND IN
THE AGGREGATE ON A DAILY, WEEKLY, AND MONTHLY BASIS;
  5.  THE  TOTAL  NUMBER  OF  NOTICES OF LIABILITY ISSUED FOR VIOLATIONS
RECORDED BY SUCH SYSTEMS;
  6. THE NUMBER OF FINES AND TOTAL AMOUNT  OF  FINES  PAID  AFTER  FIRST
NOTICE OF LIABILITY ISSUED FOR VIOLATIONS RECORDED BY SUCH SYSTEMS;
  7.  THE  NUMBER  OF VIOLATIONS ADJUDICATED AND RESULTS OF SUCH ADJUDI-
CATIONS  INCLUDING  BREAKDOWNS  OF  DISPOSITIONS  MADE  FOR   VIOLATIONS
RECORDED BY SUCH SYSTEMS;
  8.  THE TOTAL AMOUNT OF REVENUE REALIZED BY SUCH POLITICAL SUBDIVISION
FROM SUCH ADJUDICATIONS;
  9. EXPENSES INCURRED BY SUCH POLITICAL SUBDIVISION IN CONNECTION  WITH
THE PROGRAM; AND
  10. QUALITY OF THE ADJUDICATION PROCESS AND ITS RESULTS.
  (N)  IT  SHALL  BE  AN  AFFIRMATIVE  DEFENSE  TO ANY PROSECUTION FOR A
VIOLATION OF SECTION ELEVEN HUNDRED SEVENTY OF THIS ARTICLE PURSUANT  TO
A  LOCAL LAW OR ORDINANCE ADOPTED PURSUANT TO THIS SECTION THAT THERE IS
VERIFIED EVIDENCE THAT THE RAILROAD SIGNAL INDICATIONS WERE MALFUNCTION-
ING AT THE TIME OF THE ALLEGED VIOLATION.
  § 10. The vehicle and traffic law is amended by adding a  new  section
1633 to read as follows:
  §  1633.  RAILROAD  GRADE CROSSING ENFORCEMENT; DEMONSTRATION PROGRAM.
(A) 1. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE LONG ISLAND  RAIL
ROAD  AND  THE METRO-NORTH COMMUTER RAILROAD (HEREINAFTER REFERRED TO AS
"THE COMMUTER RAILROADS") ARE HEREBY AUTHORIZED AND EMPOWERED TO  IMPLE-
MENT A DEMONSTRATION PROGRAM IMPOSING MONETARY LIABILITY ON THE OWNER OF
A  VEHICLE  FOR  FAILURE  OF  AN OPERATOR THEREOF TO COMPLY WITH SECTION
ELEVEN HUNDRED SEVENTY OF THIS CHAPTER. SUCH DEMONSTRATION PROGRAM SHALL

S. 7508--A                         21                         A. 9508--A

EMPOWER EACH OF THE COMMUTER RAILROADS TO INSTALL AND  OPERATE  RAILROAD
GRADE  CROSSING  PHOTO  VERIFICATION-MONITORING  DEVICES AT ANY RAILROAD
SIGN OR SIGNAL THAT INDICATES THE APPROACH OF ONE OF ITS TRAINS.
  2.  SUCH DEMONSTRATION PROGRAM SHALL UTILIZE NECESSARY TECHNOLOGIES TO
ENSURE, TO THE EXTENT PRACTICABLE, THAT  PHOTOGRAPHS  PRODUCED  BY  SUCH
RAILROAD  GRADE  CROSSING  PHOTO  VIOLATION-MONITORING SYSTEMS SHALL NOT
INCLUDE IMAGES THAT IDENTIFY THE DRIVER, THE PASSENGERS OR THE  CONTENTS
OF  THE VEHICLE.   PROVIDED, HOWEVER, THAT NO NOTICE OF LIABILITY ISSUED
PURSUANT TO THIS SECTION SHALL BE DISMISSED SOLELY BECAUSE A  PHOTOGRAPH
OR  PHOTOGRAPHS  ALLOW FOR THE IDENTIFICATION OF THE CONTENTS OF A VEHI-
CLE, PROVIDED THAT THE COMMUTER RAILROAD HAS MADE A REASONABLE EFFORT TO
COMPLY WITH THE PROVISIONS OF THIS PARAGRAPH.
  (B) WITHIN THE JURISDICTION OF ANY SUCH COMMUTER RAILROAD PURSUANT  TO
SUBDIVISION (A) OF THIS SECTION, AND SUBJECT TO THE ADJUDICATORY PROCESS
OF  THE  APPROPRIATE POLITICAL SUBDIVISION, THE OWNER OF A VEHICLE SHALL
BE LIABLE FOR A PENALTY IMPOSED PURSUANT TO THIS SECTION IF SUCH VEHICLE
WAS USED OR OPERATED WITH  THE  PERMISSION  OF  THE  OWNER,  EXPRESS  OR
IMPLIED, IN VIOLATION OF SECTION ELEVEN HUNDRED SEVENTY OF THIS CHAPTER,
AND  SUCH VIOLATION IS EVIDENCED BY INFORMATION OBTAINED FROM A RAILROAD
GRADE CROSSING PHOTO  VIOLATION-MONITORING  SYSTEM;  PROVIDED,  HOWEVER,
THAT  NO OWNER OF A VEHICLE SHALL BE LIABLE FOR A PENALTY IMPOSED PURSU-
ANT TO THIS  SECTION  WHERE  THE  OPERATOR  OF  SUCH  VEHICLE  HAS  BEEN
CONVICTED  OF THE UNDERLYING VIOLATION OF SECTION ELEVEN HUNDRED SEVENTY
OF THIS CHAPTER.
  (C) FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL  HAVE  THE
FOLLOWING MEANING:
  1.  "OWNER"  SHALL  HAVE THE MEANING PROVIDED IN ARTICLE TWO-B OF THIS
CHAPTER;
  2. "RAILROAD GRADE CROSSING PHOTO VIOLATION-MONITORING  SYSTEM"  SHALL
MEAN  A  VEHICLE SENSOR INSTALLED TO WORK IN CONJUNCTION WITH A RAILROAD
SIGN OR SIGNAL WHICH AUTOMATICALLY PRODUCES TWO OR MORE PHOTOGRAPHS, TWO
OR MORE MICROPHOTOGRAPHS, A VIDEOTAPE OR OTHER RECORDED IMAGES  OF  EACH
VEHICLE AT THE TIME IT IS USED OR OPERATED IN VIOLATION OF SECTION ELEV-
EN HUNDRED SEVENTY OF THIS CHAPTER;
  3.  "POLITICAL SUBDIVISION" SHALL MEAN A COUNTY, CITY, TOWN OR VILLAGE
LOCATED IN THE METROPOLITAN COMMUTER TRANSPORTATION  DISTRICT,  AS  SUCH
DISTRICT  IS  DEFINED  IN SECTION TWELVE HUNDRED SIXTY-TWO OF THE PUBLIC
AUTHORITIES LAW;
  (D) A CERTIFICATE, SWORN TO OR AFFIRMED BY A  TECHNICIAN  EMPLOYED  BY
THE COMMUTER RAILROAD WHERE THE CHARGED VIOLATION OCCURRED, OR A FACSIM-
ILE  THEREOF,  BASED  UPON  INSPECTION OF PHOTOGRAPHS, MICROPHOTOGRAPHS,
VIDEOTAPE OR OTHER RECORDED IMAGES PRODUCED BY A RAILROAD GRADE CROSSING
PHOTO VIOLATION-MONITORING SYSTEM, SHALL BE PRIMA FACIE EVIDENCE OF  THE
FACTS  CONTAINED THEREIN.   ANY PHOTOGRAPHS, MICROPHOTOGRAPHS, VIDEOTAPE
OR OTHER RECORDED IMAGES EVIDENCING SUCH A VIOLATION SHALL BE  AVAILABLE
FOR  INSPECTION  IN  ANY PROCEEDING TO ADJUDICATE THE LIABILITY FOR SUCH
VIOLATION PURSUANT TO LAW.
  (E) AN OWNER LIABLE FOR A VIOLATION OF SECTION ELEVEN HUNDRED  SEVENTY
OF  THIS  CHAPTER  PURSUANT  TO  A RAILROAD GRADE CROSSING DEMONSTRATION
PROJECT ADOPTED PURSUANT TO THIS SECTION SHALL BE  LIABLE  FOR  MONETARY
PENALTIES  NOT  TO  EXCEED TWO HUNDRED FIFTY DOLLARS FOR EACH VIOLATION;
PROVIDED, HOWEVER, THAT AN ADJUDICATING AUTHORITY  MAY  PROVIDE  FOR  AN
ADDITIONAL  PENALTY OF NOT IN EXCESS OF FIFTY DOLLARS FOR EACH VIOLATION
FOR THE  FAILURE  TO  RESPOND  TO  A  NOTICE  OF  LIABILITY  WITHIN  THE
PRESCRIBED PERIOD OF TIME.

S. 7508--A                         22                         A. 9508--A

  (F)  AN  IMPOSITION OF LIABILITY PURSUANT TO THIS SECTION SHALL NOT BE
DEEMED A CONVICTION AS AN OPERATOR AND SHALL NOT BE  MADE  PART  OF  THE
OPERATING  RECORD  OF THE PERSON UPON WHOM SUCH LIABILITY IS IMPOSED NOR
SHALL IT BE USED FOR INSURANCE PURPOSES IN THE PROVISION  OF  THE  MOTOR
VEHICLE INSURANCE COVERAGE.
  (G) 1. A NOTICE OF LIABILITY SHALL BE SENT BY FIRST CLASS MAIL TO EACH
PERSON ALLEGED TO BE LIABLE AS AN OWNER FOR A VIOLATION OF SECTION ELEV-
EN  HUNDRED  SEVENTY  OF THIS CHAPTER PURSUANT TO THIS SECTION. PERSONAL
DELIVERY ON THE OWNER SHALL NOT  BE  REQUIRED.  A  MANUAL  OR  AUTOMATIC
RECORD  OF  MAILING PREPARED IN THE ORDINARY COURSE OF BUSINESS SHALL BE
PRIMA FACIE EVIDENCE OF THE FACTS CONTAINED THEREIN.
  2. A NOTICE OF LIABILITY SHALL CONTAIN THE NAME  AND  ADDRESS  OF  THE
PERSON ALLEGED TO BE LIABLE AS AN OWNER FOR A VIOLATION OF SECTION ELEV-
EN  HUNDRED SEVENTY OF THIS CHAPTER PURSUANT TO THIS SECTION, THE REGIS-
TRATION NUMBER OF THE VEHICLE INVOLVED IN SUCH VIOLATION,  THE  LOCATION
WHERE SUCH VIOLATION TOOK PLACE, THE DATE AND TIME OF SUCH VIOLATION AND
THE  IDENTIFICATION NUMBER OF THE CAMERA WHICH RECORDED THE VIOLATION OR
OTHER DOCUMENT LOCATOR NUMBER.
  3. THE NOTICE OF LIABILITY  SHALL  CONTAIN  INFORMATION  ADVISING  THE
PERSON CHARGED OF THE MANNER AND THE TIME IN WHICH HE OR SHE MAY CONTEST
THE LIABILITY ALLEGED IN THE NOTICE. SUCH NOTICE OF LIABILITY SHALL ALSO
CONTAIN  A  WARNING TO ADVISE THE PERSON CHARGED THAT FAILURE TO CONTEST
IN THE MANNER AND TIME PROVIDED SHALL BE DEEMED AN ADMISSION OF  LIABIL-
ITY AND THAT A DEFAULT JUDGMENT MAY BE ENTERED THEREON.
  4.  THE NOTICE OF LIABILITY SHALL BE PREPARED AND MAILED BY THE COMMU-
TER RAILROAD, OR BY ANY OTHER ENTITY AUTHORIZED BY SUCH  COMMUTER  RAIL-
ROAD TO PREPARE AND MAIL SUCH NOTIFICATION OF VIOLATION.
  (H)  ADJUDICATION OF ANY LIABILITY IMPOSED UPON OWNERS BY THIS SECTION
SHALL BE BY A TRAFFIC VIOLATIONS BUREAU ESTABLISHED PURSUANT TO  SECTION
THREE  HUNDRED SEVENTY OF THE GENERAL MUNICIPAL LAW OR, IF THERE BY NONE
BY THE COURT HAVING JURISDICTION OVER TRAFFIC INFRACTIONS,  EXCEPT  THAT
ANY  CITY WHICH HAS ESTABLISHED OR DESIGNATED AN ADMINISTRATIVE TRIBUNAL
TO HEAR AND DETERMINE OWNER LIABILITY ESTABLISHED BY ARTICLE TWENTY-FOUR
OF THE VEHICLE AND TRAFFIC  LAW  FOR  FAILURE  TO  COMPLY  WITH  TRAFFIC
CONTROL  INDICATIONS SHALL USE SUCH TRIBUNAL TO ADJUDICATE THE LIABILITY
IMPOSED BY THIS SECTION.
  (I) IF AN OWNER RECEIVES  A  NOTICE  OF  LIABILITY  PURSUANT  TO  THIS
SECTION  FOR  ANY TIME PERIOD DURING WHICH THE VEHICLE WAS REPORTED TO A
LAW ENFORCEMENT AGENCY AS HAVING  BEEN  STOLEN,  IT  SHALL  BE  A  VALID
DEFENSE  TO AN ALLEGATION OF LIABILITY FOR A VIOLATION OF SECTION ELEVEN
HUNDRED SEVENTY OF THIS CHAPTER PURSUANT TO THIS SECTION THAT THE  VEHI-
CLE  HAD  BEEN  REPORTED  TO  THE POLICE AS STOLEN PRIOR TO THE TIME THE
VIOLATION OCCURRED AND HAS NOT BEEN RECOVERED BY SUCH TIME. FOR PURPOSES
OF ASSERTING THE DEFENSE PROVIDED BY THIS SUBDIVISION IT SHALL BE SUFFI-
CIENT THAT A CERTIFIED COPY OF A POLICE REPORT ON THE STOLEN VEHICLE  BE
SENT  BY  FIRST  CLASS  MAIL TO THE COURT HAVING JURISDICTION OR PARKING
VIOLATIONS BUREAU.
  (J) 1. IN ANY POLITICAL SUBDIVISION WHERE THE ADJUDICATION OF  LIABIL-
ITY  IMPOSED  UPON  OWNERS PURSUANT TO THIS SECTION IS BY A COURT HAVING
JURISDICTION, AN OWNER WHO IS A LESSOR OF A VEHICLE TO WHICH A NOTICE OF
LIABILITY WAS ISSUED PURSUANT TO SUBDIVISION (G) OF THIS  SECTION  SHALL
NOT  BE  LIABLE  FOR  THE VIOLATION OF SECTION ELEVEN HUNDRED SEVENTY OF
THIS CHAPTER, PROVIDED THAT HE OR SHE SEND TO THE COURT HAVING JURISDIC-
TION A COPY OF THE RENTAL, LEASE OR OTHER SUCH CONTRACT DOCUMENT  COVER-
ING SUCH VEHICLE ON THE DATE OF THE VIOLATION, WITH THE NAME AND ADDRESS
OF  THE LESSEE CLEARLY LEGIBLE, WITHIN THIRTY-SEVEN DAYS AFTER RECEIVING

S. 7508--A                         23                         A. 9508--A

NOTICE FROM THE COURT OF THE DATE AND TIME OF SUCH  VIOLATION,  TOGETHER
WITH  THE  OTHER INFORMATION CONTAINED IN THE ORIGINAL NOTICE OF LIABIL-
ITY. FAILURE TO SEND SUCH INFORMATION WITHIN SUCH THIRTY-SEVEN DAY  TIME
PERIOD  SHALL RENDER THE OWNER LIABLE FOR THE PENALTY PRESCRIBED BY THIS
SECTION.  WHERE THE LESSOR COMPLIES WITH THE PROVISIONS  OF  THIS  PARA-
GRAPH, THE LESSEE OF SUCH VEHICLE ON THE DATE OF SUCH VIOLATION SHALL BE
DEEMED  TO  BE  THE  OWNER OF SUCH VEHICLE FOR PURPOSES OF THIS SECTION,
SHALL BE SUBJECT TO  LIABILITY  FOR  THE  VIOLATION  OF  SECTION  ELEVEN
HUNDRED  SEVENTY  OF  THIS CHAPTER PURSUANT TO THIS SECTION AND SHALL BE
SENT A NOTICE OF LIABILITY PURSUANT TO SUBDIVISION (G) OF THIS SECTION.
  2. (I) IN ANY POLITICAL SUBDIVISION WHICH HAS AUTHORIZED  THE  ADJUDI-
CATION  OF  LIABILITY  IMPOSED  UPON OWNERS BY THIS SECTION BY A PARKING
VIOLATIONS BUREAU, AN OWNER WHO IS A LESSOR OF  A  VEHICLE  TO  WHICH  A
NOTICE  OF  LIABILITY  WAS  ISSUED  PURSUANT  TO SUBDIVISION (G) OF THIS
SECTION SHALL NOT BE LIABLE FOR THE VIOLATION OF SECTION ELEVEN  HUNDRED
SEVENTY OF THIS CHAPTER, PROVIDED THAT:
  (A)  PRIOR  TO  THE VIOLATION, THE LESSOR HAS FILED WITH THE BUREAU IN
ACCORDANCE WITH THE PROVISIONS OF SECTION  TWO  HUNDRED  THIRTY-NINE  OF
THIS CHAPTER; AND
  (B) WITHIN THIRTY-SEVEN DAYS AFTER RECEIVING NOTICE FROM THE BUREAU OF
THE  DATE  AND  TIME OF A LIABILITY, TOGETHER WITH THE OTHER INFORMATION
CONTAINED IN THE ORIGINAL NOTICE OF LIABILITY, THE LESSOR SUBMITS TO THE
BUREAU THE CORRECT NAME AND ADDRESS OF THE LESSEE OF THE VEHICLE IDENTI-
FIED IN THE NOTICE OF LIABILITY AT THE TIME OF SUCH VIOLATION,  TOGETHER
WITH SUCH OTHER ADDITIONAL INFORMATION CONTAINED IN THE RENTAL, LEASE OR
OTHER  CONTRACT  DOCUMENT,  AS  MAY BE REASONABLY REQUIRED BY THE BUREAU
PURSUANT TO REGULATIONS THAT MAY BE REASONABLY REQUIRED  BY  THE  BUREAU
PURSUANT TO REGULATIONS THAT MAY BE PROMULGATED FOR SUCH PURPOSE.
  (II)  FAILURE  TO  COMPLY  WITH CLAUSE (B) OF SUBPARAGRAPH (I) OF THIS
PARAGRAPH SHALL RENDER THE OWNER LIABLE FOR THE  PENALTY  PRESCRIBED  IN
THIS SECTION.
  (III)  WHERE THE LESSOR COMPLIES WITH THE PROVISION OF THIS PARAGRAPH,
THE LESSEE OF SUCH VEHICLE ON THE DATE OF SUCH VIOLATION SHALL BE DEEMED
TO BE THE OWNER OF SUCH VEHICLE FOR PURPOSES OF THIS SECTION,  SHALL  BE
SUBJECT  TO  LIABILITY  FOR  SUCH VIOLATION PURSUANT TO THIS SECTION AND
SHALL BE SENT A NOTICE OF LIABILITY PURSUANT TO SUBDIVISION (G) OF  THIS
SECTION.
  (K)  1.  IF THE OWNER LIABLE FOR A VIOLATION OF SECTION ELEVEN HUNDRED
SEVENTY OF THIS CHAPTER PURSUANT TO THIS SECTION WAS NOT THE OPERATOR OF
THE VEHICLE AT THE TIME OF THE VIOLATION,  THE  OWNER  MAY  MAINTAIN  AN
ACTION FOR INDEMNIFICATION AGAINST THE OPERATOR.
  2.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NO OWNER OF A
VEHICLE SHALL BE SUBJECT TO A MONETARY FINE  IMPOSED  PURSUANT  TO  THIS
SECTION IF THE OPERATOR OF SUCH VEHICLE WAS OPERATING SUCH VEHICLE WITH-
OUT  THE CONSENT OF THE OWNER AT THE TIME SUCH OPERATOR FAILED TO OBEY A
RAILROAD SIGN OR SIGNAL INDICATING THE APPROACH OF A TRAIN. FOR PURPOSES
OF THIS SUBDIVISION THERE SHALL BE A PRESUMPTION THAT  THE  OPERATOR  OF
SUCH VEHICLE WAS OPERATING SUCH VEHICLE WITH THE CONSENT OF THE OWNER AT
THE TIME SUCH OPERATOR FAILED TO OBEY A RAILROAD SIGN OR SIGNAL INDICAT-
ING THE APPROACH OF A TRAIN.
  (L)  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE LIABILITY
OF AN OPERATOR OF A VEHICLE FOR ANY VIOLATION OF SECTION ELEVEN  HUNDRED
SEVENTY OF THIS CHAPTER.
  (M)  WHERE A COMMUTER RAILROAD ADOPTS A DEMONSTRATION PROGRAM PURSUANT
TO SUBDIVISION (A) OF THIS SECTION, SUCH RAILROAD SHALL SUBMIT AN ANNUAL
REPORT ON THE RESULTS OF THE USE OF  A  RAILROAD  GRADE  CROSSING  PHOTO

S. 7508--A                         24                         A. 9508--A

VIOLATION-MONITORING  SYSTEM TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF
THE SENATE AND THE SPEAKER OF THE ASSEMBLY ON OR BEFORE JUNE FIRST,  TWO
THOUSAND  EIGHTEEN AND ON THE SAME DATE IN EACH SUCCEEDING YEAR IN WHICH
THE  DEMONSTRATION  PROGRAM IS OPERABLE.  SUCH REPORT SHALL INCLUDE, BUT
NOT BE LIMITED TO:
  1. A DESCRIPTION OF THE LOCATIONS WHERE RAILROAD GRADE CROSSING  PHOTO
VIOLATION-MONITORING SYSTEMS WERE USED;
  2.  THE  AGGREGATE  NUMBER, TYPE AND SEVERITY OF ACCIDENTS REPORTED AT
INTERSECTIONS WHERE A RAILROAD GRADE CROSSING PHOTO VIOLATION-MONITORING
SYSTEM IS USED FOR THE YEAR PRECEDING THE INSTALLATION OF  SUCH  SYSTEM,
TO THE EXTENT THE INFORMATION IS MAINTAINED BY THE DEPARTMENT;
  3.  THE  AGGREGATE  NUMBER, TYPE AND SEVERITY OF ACCIDENTS REPORTED AT
INTERSECTIONS WHERE A RAILROAD GRADE CROSSING PHOTO VIOLATION-MONITORING
SYSTEM IS USED, TO THE EXTENT  THE  INFORMATION  IS  MAINTAINED  BY  THE
DEPARTMENT;
  4.  THE  NUMBER  OF  VIOLATIONS  RECORDED AT EACH INTERSECTION WHERE A
RAILROAD GRADE CROSSING PHOTO VIOLATION-MONITORING SYSTEM IS USED AND IN
THE AGGREGATE ON A DAILY, WEEKLY, AND MONTHLY BASIS;
  5. THE TOTAL NUMBER OF NOTICES  OF  LIABILITY  ISSUED  FOR  VIOLATIONS
RECORDED BY SUCH SYSTEMS;
  6.  THE  NUMBER  OF  FINES  AND TOTAL AMOUNT OF FINES PAID AFTER FIRST
NOTICE OF LIABILITY ISSUED FOR VIOLATIONS RECORDED BY SUCH SYSTEMS;
  7. THE NUMBER OF VIOLATIONS ADJUDICATED AND RESULTS  OF  SUCH  ADJUDI-
CATIONS   INCLUDING  BREAKDOWNS  OF  DISPOSITIONS  MADE  FOR  VIOLATIONS
RECORDED BY SUCH SYSTEMS;
  8. THE TOTAL AMOUNT OF REVENUE REALIZED BY  ALL  APPLICABLE  POLITICAL
SUBDIVISION FROM SUCH ADJUDICATIONS;
  9.  EXPENSES INCURRED BY SUCH COMMUTER RAILROAD IN CONNECTION WITH THE
PROGRAM; AND
  10. QUALITY OF THE ADJUDICATION PROCESS AND ITS RESULTS.
  (N) IT SHALL BE AN  AFFIRMATIVE  DEFENSE  TO  ANY  PROSECUTION  FOR  A
VIOLATION  OF SECTION ELEVEN HUNDRED SEVENTY OF THIS CHAPTER PURSUANT TO
A LOCAL LAW OR ORDINANCE ADOPTED PURSUANT TO THIS SECTION THAT THERE  IS
VERIFIED EVIDENCE THAT THE RAILROAD SIGNAL INDICATIONS WERE MALFUNCTION-
ING AT THE TIME OF THE ALLEGED VIOLATION.
  §  11.  The  opening paragraph of subdivision 1 of section 1803 of the
vehicle and traffic law, as amended by chapter 385 of the laws of  1999,
is amended to read as follows:
  Except  as  otherwise  provided  in  subdivision  five  of section two
hundred twenty-seven of this  chapter  [and  as  provided  in],  SECTION
SIXTEEN  HUNDRED THIRTY-THREE OF THIS CHAPTER AND section eleven hundred
ninety-seven of this chapter, section ninety of the  state  finance  law
and sections fourteen-f and one hundred forty of the transportation law,
all  fines  and  penalties  collected  under  a  sentence or judgment of
conviction of a violation of this chapter or of any act relating to  the
use of highways by motor vehicles or trailers, now in force or hereafter
enacted, shall be distributed in the following manner:
  § 12. Section 1803 of the vehicle and traffic law is amended by adding
a new subdivision 10 to read as follows:
  10.  WHERE  A  COMMUTER RAILROAD ESTABLISHES A RAILROAD GRADE CROSSING
DEMONSTRATION PROGRAM PURSUANT TO SECTION SIXTEEN  HUNDRED  THIRTY-THREE
OF THIS CHAPTER, ALL FINES, PENALTIES AND FORFEITURES COLLECTED PURSUANT
TO  SUCH  SECTION  SHALL  BE  PAID TO THE COUNTY, CITY, TOWN, OR VILLAGE
HAVING JURISDICTION OF THE RAILROAD GRADE CROSSING.
  § 13. Subdivision 2 of section  87  of  the  public  officers  law  is
amended by adding a new paragraph (p) to read as follows:

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  (P)  ARE  PHOTOGRAPHS,  MICROPHOTOGRAPHS,  VIDEOTAPE OR OTHER RECORDED
IMAGES PREPARED UNDER THE AUTHORITY OF SECTION ELEVEN HUNDRED  SEVENTY-A
OR SECTION SIXTEEN HUNDRED THIRTY-THREE OF THE VEHICLE AND TRAFFIC LAW.
  § 14. This act shall take effect immediately; provided, however, that:
  (a)  sections  one, two, seven and eight of this act of this act shall
take effect on the first of November next succeeding the date  on  which
it shall have become a law;
  (b)  sections  three, four, five and six of this act shall take effect
October 1, 2018; and provided, further that:
  (c) sections nine, ten, eleven, twelve and thirteen of this act  shall
take effect on the thirtieth day after it shall have become a law.

                                 PART H

  Section  1.  Paragraph  a of section 1 of part FF of chapter 55 of the
laws of 2017 relating to motor vehicles equipped with autonomous vehicle
technology, is amended to read as follows:
  a. Notwithstanding the provisions of section 1226 of the  vehicle  and
traffic  law,  the  New  York  state  commissioner of motor vehicles may
approve demonstrations and tests consisting of the operation of a  motor
vehicle  equipped  with  autonomous  vehicle technology while such motor
vehicle is engaged in the use of  such  technology  on  public  highways
within  this  state  for the purposes of demonstrating and assessing the
current development of autonomous vehicle technology and to begin  iden-
tifying potential impacts of such technology on safety, traffic control,
traffic  enforcement, emergency services, and such other areas as may be
identified by such commissioner. Provided, however,  that  such  [demon-
strations  and  tests shall only take place under the direct supervision
of the New York state police. Such] demonstrations and tests shall  take
place in a manner and form prescribed by the commissioner of motor vehi-
cles  including, but not limited to: a requirement that a natural person
holding a valid license for the operation of the motor  vehicle's  class
be  present within such vehicle for the duration of the time it is oper-
ated on public highways; a requirement that the motor  vehicle  utilized
in  such  demonstrations  and tests complies with all applicable federal
motor  vehicle  safety  standards  and  New  York  state  motor  vehicle
inspection  standards; and a requirement that the motor vehicle utilized
in such demonstrations and tests has in place, at a  minimum,  financial
security  in  the  amount  of  five million dollars. Nothing in this act
shall authorize the motor vehicle utilized in  such  demonstrations  and
tests  to  operate  in violation of article 22 or title 7 of the vehicle
and traffic law, excluding section 1226 of such law.
  § 2. Section 2 of part FF of chapter 55 of the laws of  2017  relating
to  motor  vehicles  equipped  with  autonomous  vehicle  technology, is
amended to read as follows:
  § 2. The commissioner of motor vehicles shall,  in  consultation  with
the superintendent of state police, submit a report to the governor, the
temporary  president of the senate, the speaker of the assembly, and the
chairs of the senate  and  assembly  transportation  committees  on  the
demonstrations  and  tests  authorized  by section one of this act. Such
report shall include, but not be limited to, a description of the param-
eters and purpose of such demonstrations  and  tests,  the  location  or
locations  where  demonstrations  and  tests  were conducted, the demon-
strations' and  tests'  impacts  on  safety,  traffic  control,  traffic
enforcement,  emergency services, and such other areas as may be identi-
fied by such commissioner. Such commissioner shall submit such report on

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or before June [1, 2018] FIRST OF EACH YEAR  SECTION  ONE  OF  THIS  ACT
REMAINS IN EFFECT.
  §  3.  Section 3 of part FF of chapter 55 of the laws of 2017 relating
to motor  vehicles  equipped  with  autonomous  vehicle  technology,  is
amended to read as follows:
  § 3. This act shall take effect April 1, 2017; provided, however, that
section  one  of  this  act shall expire and be deemed repealed April 1,
[2018] 2020.
  § 4. a. The New York state commissioner of motor vehicles may  approve
demonstrations  and tests consisting of the operation of a motor vehicle
equipped with autonomous vehicle technology while such motor vehicle  is
engaged  in  the  use  of such technology on public highways within this
state for the purposes of demonstrating and assessing the current devel-
opment of autonomous vehicle technology and to begin identifying  poten-
tial  impacts  of  such  technology  on safety, traffic control, traffic
enforcement, emergency services, and such other areas as may be  identi-
fied  by  such  commissioner.  Such  demonstrations and tests shall take
place in a manner and form prescribed by the commissioner of motor vehi-
cles including, but not limited to: a requirement that the motor vehicle
utilized in such demonstrations and tests complies with  all  applicable
federal  motor vehicle safety standards and New York state motor vehicle
inspection standards; and a requirement that the motor vehicle  utilized
in  such  demonstrations and tests has in place, at a minimum, financial
security in the amount of five million dollars.   Nothing  in  this  act
shall  authorize  the  motor vehicle utilized in such demonstrations and
tests to operate in violation of article 22 or title 7  of  the  vehicle
and traffic law, excluding section 1226 of such law.
  b.  For  the  purposes  of  this section, the term "autonomous vehicle
technology" shall mean the hardware and software that  are  collectively
capable  of  performing  part  or  all  of the dynamic driving task on a
sustained basis, and the term "dynamic driving task" shall mean  all  of
the  real-time  operational and tactical functions required to operate a
vehicle in on-road traffic, excluding the strategic  functions  such  as
trip scheduling and selection of destinations and waypoints.
  §  5.  The  commissioner of motor vehicles shall, in consultation with
the superintendent of state police, submit a report to the governor, the
temporary president of the senate, the speaker of the assembly, and  the
chairs  of  the  senate  and  assembly  transportation committees on the
demonstrations and tests authorized by section four of  this  act.  Such
report shall include, but not be limited to, a description of the param-
eters  and  purpose  of  such  demonstrations and tests, the location or
locations where demonstrations and  tests  were  conducted,  the  demon-
strations'  and  tests'  impacts  on  safety,  traffic  control, traffic
enforcement, emergency services, and such other areas as may be  identi-
fied by such commissioner. Such commissioner shall submit such report on
or  before  June  first of each year section four of this act remains in
effect.
  § 6. Section 1226 of the vehicle and traffic law is REPEALED.
  § 7. The commissioner of motor  vehicles  and  the  superintendent  of
financial services shall establish regulations consistent with this act.
  § 8. This act shall take effect immediately; provided, however, that:
  (a) the amendments to subdivision a of section 1 of part FF of chapter
55  of the laws of 2017 made by section one of this act shall not affect
the repeal of such section and shall be deemed to be repealed therewith;
and

S. 7508--A                         27                         A. 9508--A

  (b) sections four, five and six of this act shall take effect April 1,
2020.

                                 PART I

  Section  1.  The closing paragraph of subdivision 3 of section 99-a of
the state finance law, as amended by section 3 of part GG of chapter  55
of the laws of 2017, is amended to read as follows:
  The comptroller may require such reporting and record keeping as he or
she  deems  necessary  to  ensure  the  proper distribution of moneys in
accordance with applicable laws. A  justice  court  or  the  Nassau  and
Suffolk  counties traffic and parking violations agencies or the city of
Buffalo traffic violations agency [or the city of New York  pursuant  to
article  two-A  of the vehicle and traffic law] may utilize these proce-
dures only when permitted by the comptroller, and such permission,  once
given, may subsequently be withdrawn by the comptroller on due notice.
  §  2.  The  closing  paragraph of subdivision 3 of section 99-a of the
state finance law, as amended by section 10 of chapter 157 of  the  laws
of 2017, is amended to read as follows:
  The comptroller may require such reporting and record keeping as he or
she  deems  necessary  to  ensure  the  proper distribution of moneys in
accordance with applicable laws. A  justice  court  or  the  Nassau  and
Suffolk  counties traffic and parking violations agencies or the city of
Buffalo traffic violations agency  or  the  city  of  Rochester  traffic
violations  agency [or the city of New York pursuant to article two-A of
the vehicle and traffic law] may  utilize  these  procedures  only  when
permitted  by  the  comptroller,  and  such  permission, once given, may
subsequently be withdrawn by the comptroller on due notice.
  § 3. This act shall take effect immediately; provided,  however,  that
the amendments to the closing paragraph of subdivision 3 of section 99-a
of  the  state finance law as made by section two of this act shall take
effect on the same date and in the same manner as section 10 of  chapter
157  of the laws of 2017 takes effect, and shall be subject to the expi-
ration of such subdivision pursuant to section 4 of part GG  of  chapter
55  of  the laws of 2017, as amended, and shall be deemed expired there-
with.

                                 PART J

  Section 1. The vehicle and traffic law is  amended  by  adding  a  new
article 12-D to read as follows:
                               ARTICLE 12-D
               PRE-LICENSING COURSE INTERNET PILOT PROGRAM
SECTION 399-P. PRE-LICENSING COURSE INTERNET PILOT PROGRAM.
        399-Q. APPLICATION.
        399-R. REGULATIONS AND FEES.
        399-S. PILOT PROGRAM SCOPE AND DURATION.
        399-T. REPORT BY COMMISSIONER.
  § 399-P. PRE-LICENSING COURSE INTERNET PILOT PROGRAM. THE COMMISSIONER
SHALL  ESTABLISH,  BY REGULATION, A COMPREHENSIVE PILOT PROGRAM TO ALLOW
USE OF THE  INTERNET,  FOR  THE  ADMINISTRATION  AND  COMPLETION  OF  AN
APPROVED  PRE-LICENSING  COURSE, WHICH SHALL BE DEEMED THE EQUIVALENT OF
THE COURSE REQUIRED BY SUBPARAGRAPH (I) OF PARAGRAPH (A) OF  SUBDIVISION
FOUR OF SECTION FIVE HUNDRED TWO OF THIS CHAPTER.
  §  399-Q.  APPLICATION.  AN  APPLICANT  FOR PARTICIPATION IN THE PILOT
PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE SHALL BE AN APPROVED  SPON-

S. 7508--A                         28                         A. 9508--A

SOR  OF  AN  INTERNET  ACCIDENT  PREVENTION  COURSE, PURSUANT TO ARTICLE
TWELVE-C OF THIS TITLE, PRIOR TO THE EFFECTIVE DATE OF THIS ARTICLE.  IN
ORDER TO BE APPROVED FOR PARTICIPATION IN SUCH PILOT PROGRAM, THE COURSE
MUST  COMPLY  WITH  PROVISIONS  OF LAW, RULES AND REGULATIONS APPLICABLE
THERETO. THE COMMISSIONER MAY, IN HIS OR HER DISCRETION,  IMPOSE  A  FEE
FOR  THE SUBMISSION OF EACH APPLICATION. SUCH FEE SHALL NOT EXCEED SEVEN
THOUSAND FIVE HUNDRED DOLLARS, WHICH SHALL BE DEPOSITED IN THE DEDICATED
HIGHWAY AND BRIDGE TRUST FUND ESTABLISHED PURSUANT  TO  SECTION  EIGHTY-
NINE-B OF THE STATE FINANCE LAW.
  §  399-R.  REGULATIONS  AND FEES. 1. THE COMMISSIONER IS AUTHORIZED TO
PROMULGATE  ANY  RULES  AND  REGULATIONS  NECESSARY  TO  IMPLEMENT   THE
PROVISIONS  OF  THIS  ARTICLE  AND  TO  INSURE  THAT  THE INTERNET PILOT
PROGRAM, AS APPROVED BY THE COMMISSIONER, CAN VALIDATE: STUDENT IDENTITY
AT REGISTRATION AND THROUGHOUT THE COURSE; PARTICIPATION THROUGHOUT  THE
COURSE; THAT TIME THE REQUIREMENTS ARE MET; AND SUCCESSFUL COMPLETION OF
THE COURSE. PROVIDED, HOWEVER, THAT ANY RULES AND REGULATIONS PROMULGAT-
ED  PURSUANT TO THIS ARTICLE SHALL NOT STIPULATE ANY PARTICULAR LOCATION
FOR DELIVERY OF A PRE-LICENSING COURSE OR LIMIT THE TIME OF  DAY  DURING
WHICH SUCH COURSE MAY BE TAKEN.
  2.  THE  COMMISSIONER  IS AUTHORIZED TO IMPOSE A FEE UPON EACH PRE-LI-
CENSING COURSE SPONSORING AGENCY APPROVED TO DELIVER SUCH COURSE,  WHICH
SHALL  NOT  EXCEED  EIGHT  DOLLARS  FOR  EACH STUDENT WHO COMPLETES SUCH
COURSE, AND WHICH SHALL BE DEPOSITED IN THE DEDICATED HIGHWAY AND BRIDGE
TRUST FUND ESTABLISHED PURSUANT TO SECTION EIGHTY-NINE-B  OF  THE  STATE
FINANCE LAW.
  §  399-S.  PILOT  PROGRAM  SCOPE  AND DURATION. THE COMMISSIONER SHALL
CONDUCT A PILOT PROGRAM DESIGNED TO EVALUATE UTILIZING THE INTERNET  FOR
DELIVERING  AN  APPROVED PRE-LICENSING COURSE, WHICH SHALL BE DEEMED THE
EQUIVALENT OF THE COURSE REQUIRED BY SUBPARAGRAPH (I) OF  PARAGRAPH  (A)
OF  SUBDIVISION  FOUR  OF  SECTION  FIVE HUNDRED TWO OF THIS CHAPTER, BY
PERMITTING QUALIFIED APPLICANTS TO PARTICIPATE IN THE PILOT PROGRAM  FOR
A PERIOD OF FIVE YEARS.
  §  399-T.  REPORT BY COMMISSIONER. WITHIN FIVE YEARS OF THE ESTABLISH-
MENT AND IMPLEMENTATION OF THIS ARTICLE, THE COMMISSIONER  SHALL  REPORT
TO  THE  GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER
OF THE ASSEMBLY ON THE PRE-LICENSING COURSE INTERNET PILOT  PROGRAM  AND
ITS RESULTS. SUCH REPORTS SHALL INCLUDE RECOMMENDATIONS AS TO THE FUTURE
USE  OF INTERNET AS AN EFFECTIVE WAY, IN ADDITION TO CLASSROOM PRESENTA-
TION, TO DELIVER TO THE PUBLIC APPROVED PRE-LICENSING COURSES, AND QUAL-
IFICATIONS  FOR  PARTICIPANTS  IN  SUCH  APPROVED   INTERNET   DELIVERED
PROGRAMS.
  §  2. Paragraph (h) of subdivision 4 of section 502 of the vehicle and
traffic law, as added by section 1 of part L of chapter 59 of  the  laws
of 2009, is amended to read as follows:
  (h) Course completion certificate fee. The fee for a course completion
certificate  provided by the department to an entity that is approved by
the commissioner to offer the pre-licensing  course,  required  by  this
subdivision,  for  issuance  by  such  entity  to  students  upon  their
completion of such pre-licensing course shall be one  dollar.  Such  fee
shall  be  paid  by such entity and shall not be charged to a person who
takes the course in any manner.  THE PROVISIONS OF THIS PARAGRAPH  SHALL
NOT  APPLY  TO  A  PRE-LICENSING  COURSE ESTABLISHED PURSUANT TO ARTICLE
TWELVE-D OF THIS CHAPTER.
  § 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law and shall expire and be deemed repealed  five
years  after  the  date  that  the  pre-licensing  course internet pilot

S. 7508--A                         29                         A. 9508--A

program is established and implemented  by  the  commissioner  of  motor
vehicles  pursuant  to  article  12-D of the vehicle and traffic law, as
added by section one of this act; provided  that  any  rules  and  regu-
lations  necessary to implement the provisions of this act on its effec-
tive date are authorized and directed to be completed on or before  such
date;  and  provided,  further,  that the commissioner of motor vehicles
shall notify the legislative bill drafting commission of the date he  or
she  establishes  and implements the pre-licensing course internet pilot
program pursuant to article 12-D of the  vehicle  and  traffic  law,  as
added  by  section  one  of  this act, in order that such commission may
maintain an accurate and timely effective data base of the official text
of the laws of the state of New York in  furtherance  of  effecting  the
provisions  of section 44 of the legislative law and section 70-b of the
public officers law.

                                 PART K

  Section 1. Section 399-1 of the vehicle and traffic law, as amended by
section 1 of part D of chapter 58 of the laws of  2016,  is  amended  to
read as follows:
  §  399-l.  Application.  Applicants  for  participation  in  the pilot
program established pursuant to this article shall be among those  acci-
dent  prevention  course sponsoring agencies that have a course approved
by the commissioner pursuant to article twelve-B of this title prior  to
the  effective date of this article and which deliver such course to the
public.  Provided,  however,  the  commissioner  may,  in  his  or   her
discretion,  approve  applications  after  such  date.  In  order  to be
approved for participation in such pilot program, the course must comply
with the provisions of law, rules and  regulations  applicable  thereto.
The  commissioner  may,  in  his or her discretion, impose a fee for the
submission of each application  to  participate  in  the  pilot  program
established  pursuant  to  this article. Such fee shall not exceed seven
thousand five hundred dollars. [The proceeds  from  such  fee  shall  be
deposited  by  the  comptroller  into the special obligation reserve and
payment account of the dedicated highway and bridge  trust  fund  estab-
lished  pursuant  to  section eighty-nine-b of the state finance law for
the purposes established in this section.]
  § 2. Paragraph a of subdivision 5 of section 410 of  the  vehicle  and
traffic law, as amended by section 4 of part D of chapter 58 of the laws
of 2016, is amended to read as follows:
  a.  The  annual fee for registration or reregistration of a motorcycle
shall be eleven dollars and fifty cents.  Beginning April  first,  nine-
teen hundred ninety-eight the annual fee for registration or reregistra-
tion  of  a  motorcycle  shall be seventeen dollars and fifty cents[, of
which two dollars and fifty cents shall be deposited by the  comptroller
into the special obligation reserve and payment account of the dedicated
highway  and  bridge  trust fund established pursuant to section eighty-
nine-b of the state finance law for the  purposes  established  in  this
section].
  §  3.  Paragraph  (c-1) of subdivision 2 of section 503 of the vehicle
and traffic law, as amended by section 5 of part D of chapter 58 of  the
laws of 2016, is amended to read as follows:
  (c-1) In addition to the fees established in paragraphs (b) and (c) of
this  subdivision,  a  fee of fifty cents for each six months or portion
thereof of the period of validity shall be paid upon the issuance of any
permit, license or renewal of a license which is valid for the operation

S. 7508--A                         30                         A. 9508--A

of a motorcycle, except a limited use motorcycle. [Fees collected pursu-
ant to this paragraph shall be deposited by  the  comptroller  into  the
special  obligation reserve and payment account of the dedicated highway
and  bridge  trust fund established pursuant to section eighty-nine-b of
the state finance law for the purposes established in this section.]
  § 4. Subdivision 5 of section 317 of the vehicle and  traffic  law  is
REPEALED.
  §  5.  Paragraph  (b) of subdivision 1-a of section 318 of the vehicle
and traffic law, as amended by section 9 of part D of chapter 58 of  the
laws of 2016, is amended to read as follows:
  (b)  Notwithstanding  the provisions of paragraph (a) of this subdivi-
sion, an order of suspension issued pursuant to paragraph (a) or (e)  of
this subdivision may be terminated if the registrant pays to the commis-
sioner a civil penalty in the amount of eight dollars for each day up to
thirty  days  for  which  financial security was not in effect, plus ten
dollars for each day from the thirty-first to the sixtieth day for which
financial security was not in effect, plus twelve dollars for  each  day
from  the  sixty-first to the ninetieth day for which financial security
was not in effect. [Of each eight dollar penalty, six  dollars  will  be
deposited  in the general fund and two dollars in the special obligation
reserve and payment account of the dedicated highway  and  bridge  trust
fund  established pursuant to section eighty-nine-b of the state finance
law for the purposes established in this section.] Of  each  ten  dollar
penalty  collected, [six] EIGHT dollars will be deposited in the general
fund[, two dollars will be deposited in the special  obligation  reserve
and  payment  account  of  the  dedicated  highway and bridge trust fund
established pursuant to section eighty-nine-b of the state  finance  law
for  the purposes established in this section,] and two dollars shall be
deposited in the dedicated highway and  bridge  trust  fund  established
pursuant to section eighty-nine-b of the state finance law and the dedi-
cated  mass  transportation fund established pursuant to section eighty-
nine-c of the  state  finance  law  and  distributed  according  to  the
provisions  of subdivision (d) of section three hundred one-j of the tax
law. Of each twelve dollar penalty collected, [six] EIGHT  dollars  will
be  deposited into the general fund[, two dollars will be deposited into
the special obligation reserve and  payment  account  of  the  dedicated
highway  and  bridge  trust fund established pursuant to section eighty-
nine-b of the state finance law for the  purposes  established  in  this
section,]  and  four dollars shall be deposited in the dedicated highway
and bridge trust fund established pursuant to section  eighty-nine-b  of
the  state finance law and the dedicated mass transportation fund estab-
lished pursuant to section eighty-nine-c of the state  finance  law  and
distributed  according  to  the provisions of subdivision (d) of section
three hundred one-j of the tax law. The foregoing provision shall  apply
only  once during any thirty-six month period and only if the registrant
surrendered the certificate of registration and  number  plates  to  the
commissioner  not  more than ninety days from the date of termination of
financial security or submits to the commissioner new proof of financial
security which took effect not more than ninety  days  from  the  termi-
nation of financial security.
  §  6. Subdivision 6 of section 423-a of the vehicle and traffic law is
REPEALED.
  § 7. Paragraph (a) of subdivision 3  of  section  89-b  of  the  state
finance  law,  as  amended  by section 11 of part D of chapter 58 of the
laws of 2016, is amended to read as follows:

S. 7508--A                         31                         A. 9508--A

  (a) The special obligation reserve and payment account  shall  consist
(i)  of all moneys required to be deposited in the dedicated highway and
bridge trust fund pursuant to the provisions  of  sections  two  hundred
five,  two  hundred  eighty-nine-e,  three  hundred  one-j, five hundred
fifteen  and  eleven  hundred  sixty-seven  of the tax law, section four
hundred one of the vehicle and traffic law, and  section  thirty-one  of
chapter fifty-six of the laws of nineteen hundred ninety-three, (ii) all
fees, fines or penalties collected by the commissioner of transportation
and  the  commissioner  of motor vehicles pursuant to section fifty-two,
section three hundred twenty-six, section eighty-eight  of  the  highway
law,  subdivision fifteen of section three hundred eighty-five[, section
four hundred twenty-three-a, section four  hundred  ten,  section  three
hundred seventeen, section three hundred eighteen, article twelve-C, and
paragraph (c-1) of subdivision two of section five hundred three] of the
vehicle  and  traffic law, section two of the chapter of the laws of two
thousand three that amended this paragraph, subdivision (d)  of  section
three  hundred  four-a, paragraph one of subdivision (a) and subdivision
(d) of section three hundred five, subdivision  six-a  of  section  four
hundred  fifteen and subdivision (g) of section twenty-one hundred twen-
ty-five of the vehicle and traffic law, section fifteen of this chapter,
excepting moneys deposited with the  state  on  account  of  betterments
performed  pursuant  to  subdivision twenty-seven or subdivision thirty-
five of section ten of the highway law, and [sections  ninety-four,  one
hundred  thirty-five,  and] SECTION one hundred forty-five of the trans-
portation law, (iii) any moneys collected by the department of transpor-
tation for services provided pursuant  to  agreements  entered  into  in
accordance  with section ninety-nine-r of the general municipal law, and
(iv) any other moneys collected  therefor  or  credited  or  transferred
thereto from any other fund, account or source.
  §  8.  Paragraph  (a)  of  subdivision  3 of section 89-b of the state
finance law, as amended by section 12 of part D of  chapter  58  of  the
laws of 2016, is amended to read as follows:
  (a)  The  special obligation reserve and payment account shall consist
(i) of all moneys required to be deposited in the dedicated highway  and
bridge  trust  fund  pursuant  to the provisions of sections two hundred
eighty-nine-e, three hundred one-j,  five  hundred  fifteen  and  eleven
hundred  sixty-seven  of  the  tax  law, section four hundred one of the
vehicle and traffic law, and section thirty-one of chapter fifty-six  of
the  laws  of  nineteen  hundred  ninety-three,  (ii) all fees, fines or
penalties collected  by  the  commissioner  of  transportation  and  the
commissioner  of  motor  vehicles pursuant to section fifty-two, section
three hundred twenty-six,  section  eighty-eight  of  the  highway  law,
subdivision  fifteen of section three hundred eighty-five[, section four
hundred twenty-three-a, section four hundred ten, section three  hundred
seventeen,  section  three hundred eighteen, article twelve-C, and para-
graph (c-1) of subdivision two of section five  hundred  three]  of  the
vehicle  and  traffic  law,  section  fifteen of this chapter, excepting
moneys deposited with the state  on  account  of  betterments  performed
pursuant  to  subdivision  twenty-seven  or  subdivision  thirty-five of
section ten of the highway law, and [sections ninety-four,  one  hundred
thirty-five,  and]  SECTION one hundred forty-five of the transportation
law, (iii) any moneys collected by the department of transportation  for
services provided pursuant to agreements entered into in accordance with
section  ninety-nine-r  of the general municipal law, and (iv) any other
moneys collected therefor or credited or transferred  thereto  from  any
other fund, account or source.

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  §  9.  Subdivision  4  of  section  94  of  the  transportation law is
REPEALED.
  §  10.  Subdivision  4  of  section  135 of the transportation law, as
amended by section 4 of part C of chapter 57 of the  laws  of  2014,  is
amended to read as follows:
  4. [All revenues collected pursuant to this section shall be deposited
by  the  comptroller  into  the  special  obligation reserve and payment
account of the dedicated  highway  and  bridge  trust  fund  established
pursuant  to  section  eighty-nine-b  of  the  state finance law for the
purposes established in this section.] Fees will be  based  on  revenues
from the preceding calendar year and shall be assessed on or before July
first  and  are  payable  by  September first of each year. On or before
January first of each year following assessment of fees pursuant to this
section, the commissioner shall report to the railroad companies  annual
costs associated with this assessment.
  §  11.  Subsection  (b)  of  section 805 of the tax law, as amended by
section 1 of part C of chapter 25 of the laws of  2009,  is  amended  to
read as follows:
  (b)  On  or before the twelfth and twenty-sixth day of each succeeding
month, after reserving such amount for such refunds and  deducting  such
amounts  for  such  costs,  as  provided  for  in subsection (a) of this
section, the commissioner shall certify to the comptroller the amount of
all revenues so received during the prior  month  as  a  result  of  the
taxes,  interest  and  penalties  so  imposed. The amount of revenues so
certified shall be paid over by the fifteenth and the final business day
of each succeeding month from such account  WITHOUT  APPROPRIATION  into
the  [mobility  tax  trust  account  of  the metropolitan transportation
authority financial assistance  fund  established  pursuant  to  section
ninety-two-ff  of the state finance law, for payment, pursuant to appro-
priations by the legislature to the] metropolitan transportation author-
ity finance fund established pursuant to section twelve  hundred  seven-
ty-h  of  the  public  authorities  law,  PROVIDED,  HOWEVER,  THAT  THE
COMPTROLLER SHALL ENSURE THAT ANY PAYMENTS TO THE METROPOLITAN TRANSPOR-
TATION AUTHORITY FINANCE FUND WHICH ARE DUE TO  BE  PAID  BY  THE  FINAL
BUSINESS  DAY IN THE MONTH OF DECEMBER PURSUANT TO THIS SUBSECTION SHALL
BE RECEIVED BY THE METROPOLITAN TRANSPORTATION AUTHORITY FINANCE FUND ON
THE SAME BUSINESS DAY IN WHICH IT IS PAID.
  § 12. Section 4 of the state finance law is amended by  adding  a  new
subdivision 12 to read as follows:
  12.  NOTWITHSTANDING SUBDIVISION ONE OF THIS SECTION AND ANY OTHER LAW
TO THE CONTRARY, THE REVENUE (INCLUDING TAXES, INTEREST  AND  PENALTIES)
FROM  THE  METROPOLITAN  COMMUTER  TRANSPORTATION  MOBILITY  TAX IMPOSED
PURSUANT TO ARTICLE TWENTY-THREE OF  THE  TAX  LAW  WHICH  ARE  PAID  IN
ACCORDANCE  WITH SUBSECTION (B) OF SECTION EIGHT HUNDRED FIVE OF THE TAX
LAW INTO THE METROPOLITAN TRANSPORTATION AUTHORITY FINANCE  FUND  ESTAB-
LISHED BY SECTION TWELVE HUNDRED SEVENTY-H OF THE PUBLIC AUTHORITIES LAW
SHALL BE MADE PURSUANT TO STATUTE BUT WITHOUT AN APPROPRIATION.
  §  13.  Subdivision 2 of section 1270-h of the public authorities law,
as added by section 16 of part H of chapter 25 of the laws of  2009,  is
amended to read as follows:
  2.  The comptroller shall deposit INTO THE METROPOLITAN TRANSPORTATION
AUTHORITY FINANCE FUND (A) monthly, pursuant to appropriation, [into the
metropolitan transportation authority finance fund] the moneys deposited
in the mobility tax trust account  of  the  metropolitan  transportation
authority financial assistance fund pursuant to [article twenty-three of
the  tax  law, and] any [other] provision of law directing or permitting

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the deposit of moneys in such fund, AND (B) WITHOUT  APPROPRIATION,  THE
REVENUE  INCLUDING TAXES, INTEREST AND PENALTIES COLLECTED IN ACCORDANCE
WITH ARTICLE TWENTY-THREE OF THE TAX LAW.
  §  14. Subdivisions 3 and 5 of section 92-ff of the state finance law,
as added by section 16 of part G of chapter 25 of the laws of 2009,  are
amended to read as follows:
  3.  Such fund shall consist of all moneys collected [therefore] THERE-
FOR or credited or transferred thereto from any other fund,  account  or
source,  including,  without  limitation, the [revenues derived from the
metropolitan commuter transportation mobility  tax  imposed  by  article
twenty-three  of the tax law;] revenues derived from the special supple-
mental tax on passenger car rentals imposed by  section  eleven  hundred
sixty-six-a  of  the  tax  law; revenues derived from the transportation
surcharge imposed by article twenty-nine-A of the tax law;  the  supple-
mental  registration  fees imposed by article seventeen-C of the vehicle
and traffic law; and the supplemental metropolitan commuter  transporta-
tion  district license fees imposed by section five hundred three of the
vehicle and traffic law. Any interest received  by  the  comptroller  on
moneys on deposit in the metropolitan transportation authority financial
assistance fund shall be retained in and become a part of such fund.
  5.  (a)  The  "mobility  tax trust account" shall consist of [revenues
required to be deposited therein pursuant to the provisions  of  article
twenty-three  of  the  tax  law and all other] moneys credited or trans-
ferred thereto from any [other] fund or source pursuant to law.
  (b) Moneys in the "mobility tax  trust  account"  shall,  pursuant  to
appropriation  by  the legislature, be transferred on a monthly basis to
the metropolitan transportation authority finance  fund  established  by
section  twelve  hundred  seventy-h  of  the  public authorities law and
utilized in accordance with said section. It is the intent of the legis-
lature to enact two appropriations from the mobility tax  trust  account
to the metropolitan transportation authority finance fund established by
section twelve hundred seventy-h of the public authorities law. One such
appropriation  shall  be  equal  to the amounts expected to be available
[for such purpose pursuant to article twenty-three of the  tax  law  or]
from  any  [other] monies described in paragraph (a) of this subdivision
during the two thousand [nine]  EIGHTEEN--two  thousand  [ten]  NINETEEN
fiscal  year  and shall be effective in that fiscal year. The other such
appropriation shall be equal to the amounts  expected  to  be  available
[for  such  purpose  pursuant to article twenty-three of the tax law or]
from any [other] monies described in paragraph (a) of  this  subdivision
during  the  two  thousand  [ten] NINETEEN--two thousand [eleven] TWENTY
fiscal year and shall, notwithstanding the provisions of  section  forty
of  this chapter, take effect on the first day of the two thousand [ten]
NINETEEN--two thousand [eleven] TWENTY fiscal year and lapse on the last
day of that fiscal year. It is the intent of the governor to submit  and
the  legislature  to  enact  for each fiscal year after the two thousand
[nine] EIGHTEEN--two thousand [ten] NINETEEN fiscal year  in  an  annual
budget  bill:  (i) an appropriation for the amount expected to be avail-
able in the mobility tax trust account during such fiscal year  for  the
metropolitan  transportation authority [pursuant to article twenty-three
of the tax law or] FROM any [other] monies described in paragraph (a) of
this subdivision; and (ii) an appropriation for the amount projected  by
the  director  of  the  budget to be deposited in the mobility tax trust
account [pursuant to article twenty-three of the tax law  or]  from  any
[other]  monies  described  in paragraph (a) of this subdivision for the
next succeeding fiscal year. Such appropriation for payment of  revenues

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projected  to be deposited in the succeeding fiscal year shall, notwith-
standing the provisions of section forty of this chapter, take effect on
the first day of such succeeding fiscal year and lapse on the  last  day
of  such  fiscal year. If for any fiscal year commencing on or after the
first day of April, two thousand ten the  governor  fails  to  submit  a
budget  bill containing the foregoing, or the legislature fails to enact
a bill  with  such  provisions,  then  the  metropolitan  transportation
authority  shall notify the comptroller, the director of the budget, the
chairperson of the senate finance committee and the chairperson  of  the
assembly  ways  and  means committee of amounts required to be disbursed
from the appropriation made during the preceding fiscal year for payment
in such fiscal year. In no event shall the comptroller make any payments
from such appropriation prior to May first  of  such  fiscal  year,  and
unless  and  until  the  director  of the budget, the chairperson of the
senate finance committee and the chairperson of the  assembly  ways  and
means  committee  have  been  notified  of the required payments and the
timing of such payments to be made from the mobility tax  trust  account
to the metropolitan transportation authority finance fund established by
section  twelve hundred seventy-h of the public authorities law at least
forty-eight hours prior  to  any  such  payments.  Until  such  time  as
payments  pursuant  to  such appropriation are made in full, revenues in
the mobility tax trust account shall not be  paid  over  to  any  person
other than the metropolitan transportation authority.
  § 15. This act shall take effect April 1, 2018; provided however, that
the  amendments  to section 399-l of the vehicle and traffic law made by
section one of this act shall not affect the repeal of such section  and
shall  be deemed repealed therewith; and provided further, however, that
the amendments to paragraph (a) of subdivision 3 of section 89-b of  the
state  finance law made by section seven of this act shall be subject to
the expiration and reversion of such paragraph pursuant to section 13 of
part U1 of chapter 62 of the laws of 2003, as amended,  when  upon  such
date the provisions of section eight of this act shall take effect.

                                 PART L

  Section  1.  Legislative  findings and declaration. It is hereby found
and declared that:
  Within the metropolitan commuter transportation district  created  and
established  by  section  1262  of the public authorities law there have
been and will be geographic areas  that  receive  special  economic  and
other  benefits  from  capital  elements undertaken in connection with a
capital program approved  pursuant  to  section  1269-b  of  the  public
authorities law.
  It  is  further  found  and  declared that it is a matter of statewide
concern that the transportation facilities of the metropolitan transpor-
tation authority, the New York city transit authority and their  subsid-
iaries  be  maintained and expanded to ensure the economic health of the
metropolitan commuter transportation district and in furtherance thereof
that all of the real property within those subdistricts that are  deter-
mined  to be the beneficiary of such special economic and other benefits
should contribute to the  funding  of  the  metropolitan  transportation
authority's  capital programs at a level determined to be appropriate to
the special benefits received within such subdistrict.
  For these reasons it is declared that these changes are  necessary  to
protect  and promote the sound enhancement, renewal and expansion of the
transportation facilities of the metropolitan transportation  authority,

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the  New  York  city transit authority and their subsidiaries, including
the planning, design, acquisition, construction,  reconstruction,  reha-
bilitation  and improvement of such facilities through the establishment
of  transportation  improvement subdistricts and the use of increases in
the fair market value of real property in  such  subdistricts  resulting
from  such  improvements to transportation facilities to provide funding
for  the  metropolitan  transportation  authority's   approved   capital
programs.
  § 2. Section 1261 of the public authorities law is amended by adding a
new subdivision 25 to read as follows:
  25. "TRANSPORTATION IMPROVEMENT SUBDISTRICT" SHALL MEAN AN AREA WITHIN
THE  METROPOLITAN  COMMUTER  TRANSPORTATION DISTRICT WHICH AREA HAS BEEN
ESTABLISHED PURSUANT TO SECTION  TWELVE  HUNDRED  SIXTY-NINE-H  OF  THIS
ARTICLE  AND  INCLUDED ON THE LIST OF TRANSPORTATION IMPROVEMENT SUBDIS-
TRICTS AS PROVIDED IN ARTICLE FIFTEEN-D OF THE REAL PROPERTY TAX LAW.
  § 3. The public authorities law is amended by  adding  a  new  section
1269-h to read as follows:
  § 1269-H. TRANSPORTATION IMPROVEMENT SUBDISTRICTS. 1. THE BOARD OF THE
METROPOLITAN  TRANSPORTATION  AUTHORITY SHALL ESTABLISH A TRANSPORTATION
IMPROVEMENT SUBDISTRICT PURSUANT TO THE  PROCEDURE  SET  FORTH  IN  THIS
SECTION INCLUDING, BUT NOT LIMITED TO, THE PROJECTS LISTED BELOW:
  (A)  PHASES  ONE,  TWO,  THREE  AND  FOUR  OF THE SECOND AVENUE SUBWAY
PROJECT;
  (B) THE PROJECT TO BRING THE LONG ISLAND RAIL ROAD INTO GRAND  CENTRAL
TERMINAL ("EAST SIDE ACCESS PROJECT");
  (C) PENN STATION ACCESS; AND
  (D) 125TH MNR AND SUBWAY STATIONS.
  2.  FROM  TIME  TO  TIME, THE BOARD OF THE METROPOLITAN TRANSPORTATION
AUTHORITY MAY CREATE AND ESTABLISH  TRANSPORTATION  IMPROVEMENT  SUBDIS-
TRICTS  AS  IT DEEMS NECESSARY AND APPROPRIATE PROVIDED THAT THE PLANNED
CAPITAL PROGRAM  ELEMENTS  IN  AN  APPROVED  CAPITAL  PROGRAM  THAT  ARE
EXPECTED TO RESULT IN AN INCREASE IN THE FAIR MARKET VALUE OF REAL PROP-
ERTY  IN  SUCH  TRANSPORTATION IMPROVEMENT SUBDISTRICT HAVE AN ESTIMATED
CAPITAL COST GREATER THAN ONE HUNDRED MILLION DOLLARS.
  3. PRIOR TO THE VOTE BY THE BOARD OF THE  METROPOLITAN  TRANSPORTATION
AUTHORITY  TO  CREATE AND ESTABLISH A TRANSPORTATION IMPROVEMENT SUBDIS-
TRICT, THE FOLLOWING SHALL HAVE OCCURRED:
  (A) THE LEGAL DESCRIPTION OF  THE  BOUNDARIES  OF  THE  TRANSPORTATION
IMPROVEMENT  SUBDISTRICT  SHALL  HAVE  BEEN  PREPARED.  A TRANSPORTATION
IMPROVEMENT SUBDISTRICT MAY BE ESTABLISHED ANYWHERE WITHIN A CITY  OF  A
POPULATION OF ONE MILLION OR MORE THAT IS WITHIN THE METROPOLITAN COMMU-
TER  TRANSPORTATION  DISTRICT PROVIDED THAT A TRANSPORTATION IMPROVEMENT
SUBDISTRICT SHALL INCLUDE ONLY WHOLE TAX PARCELS, BUT  SHALL  EXTEND  NO
FURTHER  THAN ONE MILE IN ANY DIRECTION FROM ANY PART OF THE TRANSPORTA-
TION IMPROVEMENT.
  (B) THERE SHALL HAVE BEEN AN ANALYSIS PERFORMED BY OR ON BEHALF OF THE
AUTHORITY AND SUBMITTED TO THE BOARD OF THE METROPOLITAN  TRANSPORTATION
AUTHORITY  THAT  INDICATES  THAT  THE AGGREGATE FAIR MARKET VALUE OF THE
REAL PROPERTY WITHIN THE  PROPOSED  BOUNDARIES  OF  SUCH  TRANSPORTATION
IMPROVEMENT  SUBDISTRICT  INCREASED OR IS FORECAST TO INCREASE MORE THAN
IT WOULD HAVE INCREASED IF  NO  WORK  PERFORMED  OR  ANTICIPATED  TO  BE
PERFORMED PURSUANT TO ONE OR MORE CAPITAL PROGRAM ELEMENTS HAD OCCURRED.
SUCH  ANALYSIS  SHALL  IDENTIFY GENERALLY THE ESTIMATED LEVEL OF AVERAGE
INCREMENTAL INCREASE IN THE FAIR MARKET VALUE OF  REAL  PROPERTY  WITHIN
THE  PROPOSED  TRANSPORTATION IMPROVEMENT SUBDISTRICT AS A RESULT OF THE

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IMPLEMENTATION OF THE SPECIFIED CAPITAL PROGRAM ELEMENTS SINCE  NINETEEN
HUNDRED EIGHTY-ONE.
  (C)  THE AUTHORITY SHALL CONDUCT A PUBLIC HEARING ON THE ESTABLISHMENT
OF SUCH PROPOSED TRANSPORTATION IMPROVEMENT SUBDISTRICT. NOTICE  OF  THE
HEARING  SHALL:  (I)  BE  WRITTEN  IN  A CLEAR AND COHERENT MANNER; (II)
GENERALLY  IDENTIFY  THE  BOUNDARIES  OF  THE  PROPOSED   TRANSPORTATION
IMPROVEMENT  SUBDISTRICT;  (III) STATE THE PERCENTAGE OF THE INCREMENTAL
REAL PROPERTY TAX LEVIED ON ALL PARCELS WITHIN THE PROPOSED  TRANSPORTA-
TION IMPROVEMENT SUBDISTRICT THAT THE AUTHORITY PROPOSES TO BE ASSESSED;
(IV) PROVIDE THE INTERNET ADDRESS WHERE A DETAILED MAP OF THE BOUNDARIES
OF  THE  PROPOSED  TRANSPORTATION  IMPROVEMENT  SUBDISTRICT  IS PUBLICLY
ACCESSIBLE, TOGETHER WITH A COPY OF THE ANALYSIS PROVIDED TO  THE  BOARD
OF  THE  METROPOLITAN TRANSPORTATION AUTHORITY PURSUANT TO PARAGRAPH (B)
OF THIS SUBDIVISION; (V) BE SENT TO THE MAYOR OF A  CITY  WITH  A  POPU-
LATION  OF  ONE  MILLION  OR  MORE  IN WHICH THE PROPOSED TRANSPORTATION
IMPROVEMENT SUBDISTRICT IS LOCATED AT LEAST THIRTY DAYS  PRIOR  TO  SUCH
PUBLIC  HEARING;  AND  (VI)  BE POSTED ON THE AUTHORITY'S WEBSITE FOR AT
LEAST THIRTY DAYS PRIOR TO SUCH PUBLIC HEARING.
  (D) AFTER SUCH HEARING AND AT ANY TIME PRIOR TO THE  ADOPTION  OF  THE
RESOLUTION  RECOMMENDING  ESTABLISHMENT  OF A TRANSPORTATION IMPROVEMENT
SUBDISTRICT, THE AUTHORITY MAY AMEND THE BOUNDARIES OF  THE  RECOMMENDED
TRANSPORTATION IMPROVEMENT SUBDISTRICT.
  (E)  THE RESOLUTION BY WHICH THE BOARD OF THE METROPOLITAN TRANSPORTA-
TION AUTHORITY SHALL ESTABLISH A TRANSPORTATION IMPROVEMENT  SUBDISTRICT
SHALL  INCLUDE A DETAILED STATEMENT OF THE REASONS WHY THE BOARD CONSID-
ERS THAT THE PROPOSED TRANSPORTATION IMPROVEMENT SUBDISTRICT  HAS  BENE-
FITTED  OR  WILL  BENEFIT  FROM  IMPLEMENTATION OF THE SPECIFIED CAPITAL
PROGRAM ELEMENTS AND SHALL SPECIFY THE  PERCENTAGE  OF  THE  INCREMENTAL
REAL  PROPERTY  TAX  LEVIED  ON ALL PARCELS WITHIN EACH OF THE FOLLOWING
TRANSPORTATION IMPROVEMENT SUBDISTRICTS THAT SHALL BE ASSESSED  PROVIDED
THAT SUCH PERCENTAGE MAY NOT EXCEED FIFTY PERCENT.
  (F)  UPON  APPROVAL  BY  THE  BOARD OF THE METROPOLITAN TRANSPORTATION
AUTHORITY OF A  RESOLUTION  ESTABLISHING  A  TRANSPORTATION  IMPROVEMENT
SUBDISTRICT,  THE  AUTHORITY SHALL ADD IT TO THE LIST OF APPROVED TRANS-
PORTATION IMPROVEMENT SUBDISTRICTS SET FORTH IN ARTICLE FIFTEEN-D OF THE
REAL PROPERTY TAX LAW THAT IT SHALL MAINTAIN ON THE AUTHORITY'S PUBLICLY
AVAILABLE WEBSITE AND ALSO SHALL NOTIFY THE METROPOLITAN  TRANSPORTATION
AUTHORITY CAPITAL PROGRAM REVIEW BOARD.
  (G)  THE  ADOPTION  BY  THE  BOARD  OF THE METROPOLITAN TRANSPORTATION
AUTHORITY OF A  RESOLUTION  ESTABLISHING  A  TRANSPORTATION  IMPROVEMENT
SUBDISTRICT  SHALL  NOT BE SUBJECT TO PROVISIONS OF ARTICLE EIGHT, NINE-
TEEN, TWENTY-FOUR OR TWENTY-FIVE OF THE ENVIRONMENTAL CONSERVATION  LAW,
OR TO ANY LOCAL LAW OR ORDINANCE ADOPTED PURSUANT TO SUCH ARTICLE.
  § 4. The real property tax law is amended by adding a new article 15-D
to read as follows:
                               ARTICLE 15-D
                  TRANSPORTATION IMPROVEMENT DISTRICTS
SECTION 1596. DEFINITIONS.
        1597. LEVYING ASSESSMENT.
        1598. COLLECTION OF ASSESSMENT.
  §  1596. DEFINITIONS. AS USED OR REFERRED TO IN THIS ARTICLE, UNLESS A
DIFFERENT MEANING CLEARLY APPEARS FROM THE CONTEXT:
  1. "BASELINE REAL PROPERTY TAX" SHALL MEAN  THE  TOTAL  REAL  PROPERTY
TAXES  LEVIED ON A PARCEL LAST LEVIED PRIOR TO THE EFFECTIVE DATE OF THE
RESOLUTION OF THE METROPOLITAN TRANSPORTATION AUTHORITY ESTABLISHING THE
TRANSPORTATION IMPROVEMENT SUBDISTRICT IN WHICH SUCH PARCEL  IS  LOCATED

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AND  SHALL  ALSO INCLUDE ANY PAYMENTS IN LIEU OF TAXES MADE WITH RESPECT
TO ANY SUCH PARCEL.
  2. "INCREMENTAL REAL PROPERTY TAX" SHALL MEAN THAT PORTION OF THE REAL
PROPERTY  TAXES  LEVIED  ON A PARCEL EACH YEAR IN EXCESS OF THE BASELINE
REAL PROPERTY TAX AND SHALL INCLUDE ANY PAYMENTS IN LIEU OF  TAXES  MADE
WITH RESPECT TO ANY PARCEL.
  3.  "REAL  PROPERTY" SHALL MEAN "REAL PROPERTY" AS DEFINED IN SUBDIVI-
SION TWELVE OF SECTION ONE HUNDRED TWO OF THIS CHAPTER.
  4. "PARCEL" SHALL MEAN A "PARCEL" AS DEFINED IN SUBDIVISION ELEVEN  OF
SECTION ONE HUNDRED TWO OF THIS CHAPTER.
  5. "TAXING JURISDICTION" SHALL MEAN A MUNICIPAL CORPORATION OR SPECIAL
DISTRICT WHICH IMPOSES A CHARGE UPON REAL PROPERTY LOCATED WITHIN A CITY
OF A POPULATION OF ONE MILLION OR MORE.
  6.  "TRANSPORTATION  IMPROVEMENT SUBDISTRICT" SHALL MEAN A TRANSPORTA-
TION IMPROVEMENT SUBDISTRICT DULY APPROVED BY THE BOARD OF THE METROPOL-
ITAN TRANSPORTATION AUTHORITY PURSUANT TO SECTION TWELVE HUNDRED  SIXTY-
NINE-H  OF  THE  PUBLIC  AUTHORITIES  LAW  AND ADDED TO THE LIST OF SUCH
TRANSPORTATION IMPROVEMENT SUBDISTRICTS MAINTAINED BY  THE  METROPOLITAN
TRANSPORTATION AUTHORITY.
  §  1597.  LEVYING  ASSESSMENT. 1. FOR THE SOLE PURPOSE OF PROVIDING AN
ADDITIONAL STABLE AND RELIABLE DEDICATED FUNDING SOURCE FOR  THE  METRO-
POLITAN  TRANSPORTATION  AUTHORITY,  THE NEW YORK CITY TRANSIT AUTHORITY
AND THEIR SUBSIDIARIES TO PRESERVE, OPERATE AND IMPROVE ESSENTIAL TRANS-
IT AND TRANSPORTATION SERVICES IN THE METROPOLITAN COMMUTER  TRANSPORTA-
TION DISTRICT, AN ASSESSMENT EQUAL TO NOT MORE THAN SEVENTY-FIVE PERCENT
OF  THE  INCREMENTAL REAL PROPERTY TAX LEVIED ON ALL PARCELS WITHIN EACH
OF  THE  FOLLOWING  TRANSPORTATION  IMPROVEMENT  SUBDISTRICTS  SHALL  BE
LEVIED,  COMMENCING,  FOR  EACH  PARCEL  IN A TRANSPORTATION IMPROVEMENT
SUBDISTRICT, WITH THE FIRST LEVY OF REAL PROPERTY TAXES ON  SUCH  PARCEL
OCCURRING ON OR AFTER THE DATE OF CALCULATION OF THE BASELINE REAL PROP-
ERTY  TAX  FOR SUCH PARCEL.   FOR THE TRANSPORTATION IMPROVEMENT SUBDIS-
TRICTS ESTABLISHED PURSUANT TO SUBDIVISION TWO OF SECTION TWELVE HUNDRED
SIXTY-NINE-H OF  THE  PUBLIC  AUTHORITIES  LAW,  SUCH  ASSESSMENT  SHALL
COMMENCE FOR EACH PARCEL IN SUCH SUBDISTRICT WITH THE FIRST LEVY OF REAL
PROPERTY TAXES ON SUCH PARCEL ON OR AFTER THE DATE THAT THE METROPOLITAN
TRANSPORTATION  AUTHORITY  ADOPTS A RESOLUTION ESTABLISHING SUCH SUBDIS-
TRICT. THE BASELINE REAL PROPERTY TAX THAT SHALL BE  USED  TO  DETERMINE
THE  AMOUNT  OF SUCH ASSESSMENT SHALL BE THE FIRST LEVY OF REAL PROPERTY
TAXES ON ANY PARCEL IN SUCH SUBDISTRICT FOLLOWING THE  APPROVAL  OF  THE
PLANNING PROCESS FOR SUCH PROJECT BY THE CAPITAL PROGRAM REVIEW BOARD.
  2. NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE METROPOLITAN TRANSPOR-
TATION  AUTHORITY  SHALL HAVE NO LIABILITY TO ANY TAXING JURISDICTION OR
TO ANY REAL PROPERTY TAXPAYER FOR ANY TAX CERTIORARI PROCEEDING  OR  ANY
OTHER  JUDICIAL  OR  ADMINISTRATIVE PROCEEDING COMMENCED WITH RESPECT TO
ANY REAL PROPERTY TAX ASSESSMENT.
  § 1598. COLLECTION OF ASSESSMENT. 1.  EACH  TAXING  JURISDICTION  WILL
TIMELY COLLECT AND PAY OVER THE ASSESSMENT TO THE METROPOLITAN TRANSPOR-
TATION AUTHORITY IN A FORM AND MANNER PRESCRIBED BY SUCH AUTHORITY.
  2.  IN  THE EVENT THAT ANY TAXING JURISDICTION WITH RESPONSIBILITY FOR
COLLECTING THE TRANSPORTATION IMPROVEMENT  SUBDISTRICT  ASSESSMENT  DOES
NOT  PAY  SUCH  ASSESSMENTS  WITHIN  THIRTY  DAYS OF THE RECEIPT OF SUCH
ASSESSMENT, THE METROPOLITAN TRANSPORTATION AUTHORITY SHALL  NOTIFY  THE
STATE COMPTROLLER IN WRITING AND SUCH COMPTROLLER SHALL, UPON REVIEW AND
DETERMINATION  THAT  AN  ASSESSMENT  WAS NOT PAID, DEDUCT ANY AMOUNT NOT
PAID FROM ANY AMOUNT OF STATE AID OR ANY OTHER STATE PAYMENT DUE TO SUCH

S. 7508--A                         38                         A. 9508--A

TAXING JURISDICTION. THE STATE COMPTROLLER SHALL REMIT  THE  AMOUNTS  SO
DEDUCTED AND RECOVERED TO THE METROPOLITAN TRANSPORTATION AUTHORITY.
  § 5. This act shall take effect immediately.

                                 PART M

  Section  1.  Legislative intent. Historically, under existing law, and
pursuant to its master lease with the New York  city  transit  authority
(NYCT), the city of New York is required to pay for the capital needs of
the  NYCT.  This  obligation  has  never ceased from the initial chapter
establishing the NYCT and  transferring  the  operation  of  the  city's
subway system to the NYCT in 1953. This legislation clarifies this long-
standing  obligation and establishes a process for state assistance when
a disaster emergency is declared.
  § 2. Subdivision 1 of section 1269-b of the public authorities law, as
amended by chapter 637 of the laws  of  1996,  is  amended  to  read  as
follows:
  1.    (a) On or before October first, nineteen hundred eighty-one, and
on or before October first of every fifth year thereafter,  through  and
including  October  first,  nineteen  hundred  ninety-one, the authority
shall  submit  to  the  metropolitan  transportation  authority  capital
program  review board two capital program plans for the five year period
commencing January first of the following year;
  (b) not later than ten days after the effective date of this paragraph
the authority shall submit to the metropolitan transportation  authority
capital program review board two capital program plans for the five-year
period commencing January first, nineteen hundred ninety-five; and
  (c) on or before October first, nineteen hundred ninety-nine and every
fifth  year  thereafter,  the authority shall submit to the metropolitan
transportation  authority  capital  program  review  board  two  capital
program  plans  for the five-year period commencing January first of the
following year.
  For each of the periods described above, one such plan  shall  contain
the  capital program for the transit facilities operated by the New York
city transit authority and its subsidiaries and for  the  Staten  Island
rapid transit operating authority; the other such plan shall contain the
capital  program  for  the railroad facilities, not including the Staten
Island rapid transit operating authority, under the jurisdiction of  the
authority.
  Each  plan  shall  set  system-wide  goals  and objectives for capital
spending, establish standards for service and operations,  and  describe
each  capital  element  proposed  to  be  initiated in each of the years
covered by the plan and explain how each proposed element  supports  the
achievement  of the service and operational standards established in the
plan. Each plan shall also set forth an estimate of the amount of  capi-
tal funding required each year and the expected sources of such funding,
EXCEPT  THAT  FOR  SUCH  CAPITAL  FUNDING REQUIRED EACH YEAR FOR TRANSIT
FACILITIES OPERATED BY THE NEW  YORK  CITY  TRANSIT  AUTHORITY  AND  ITS
SUBSIDIARIES,  THE  CITY  OF  NEW YORK SHALL PROVIDE IN FULL ALL FUNDING
REQUIRED TO MEET THE CAPITAL NEEDS OF THE NEW YORK CITY TRANSIT AUTHORI-
TY IN SUCH PLAN.  Each plan subsequent to the first such plan  and  each
proposed  amendment  or  modification  thereof  shall  also describe the
current status of  each  capital  element  included  in  the  previously
approved plan, if any. Each plan shall be accompanied or supplemented by
such  supporting  materials as the metropolitan transportation authority
capital program review board shall require.

S. 7508--A                         39                         A. 9508--A

  A capital element shall mean either a category of expenditure itemized
in a plan, as hereinafter provided, for which a specified maximum dollar
amount is proposed to be expended, or a particularly  described  capital
project  within  one or more categories for which no maximum expenditure
is  proposed,  but for which an estimate of expected cost is provided. A
capital element shall be deemed to have been initiated for  purposes  of
this  section  if  in  connection  with such element the authority shall
certify that (i) purchase or construction contracts  have  been  entered
into, obligating in the aggregate an amount exceeding ten percent of the
maximum  or  estimated  cost of the element as set forth in a plan, (ii)
financing specific to the project has been undertaken,  or  (iii)  in  a
case  where such element is limited to design or engineering, a contract
therefor has been entered into.
  § 3. Section 1269-b of the public authorities law is amended by adding
a new subdivision 10 to read as follows:
  10. IN THE CASE OF A DISASTER EMERGENCY DECLARED PURSUANT  TO  SECTION
TWENTY-EIGHT OF THE EXECUTIVE LAW, WHERE SUCH DISASTER EMERGENCY RELATES
TO  THE  CONTINUING FAILURES AND THE CONDITION OF THE TRACK, SIGNALS AND
OTHER INFRASTRUCTURE OF THE TRANSIT FACILITIES OPERATED BY THE NEW  YORK
CITY  TRANSIT  AUTHORITY,  THE  STATE  MAY APPROPRIATE REVENUES IT DEEMS
NECESSARY AND APPROPRIATE TO FUND  THE  CAPITAL  COSTS  OF  REPAIRS  AND
CONSTRUCTION DEEMED ESSENTIAL TO ENSURE THE CONTINUED SAFE AND EFFECTIVE
OPERATION  OF  SUCH TRANSIT FACILITIES. UPON ANY SUCH APPROPRIATION, THE
CITY OF NEW YORK SHALL, WITHIN SIXTY DAYS, APPROPRIATE AN IDENTICAL  SUM
TO PROVIDE FOR CAPITAL REPAIRS AND CONSTRUCTION.
  § 4. This act shall take effect immediately.

                                 PART N

  Section  1.  Paragraph  (a)  of  subdivision  5 of section 2879 of the
public authorities law, as amended by chapter 531 of the laws  of  1993,
is amended to read as follows:
  (a)  Each corporation shall notify the commissioner of economic devel-
opment of the award of a procurement contract for the purchase of  goods
or  services from a foreign business enterprise in an amount equal to or
greater than one  million  dollars  simultaneously  with  notifying  the
successful  bidder therefor. [No corporation shall thereafter enter into
a procurement contract for said goods or services until at least fifteen
days has elapsed, except for procurement contracts awarded on  an  emer-
gency  or critical basis, or where the commissioner of economic develop-
ment waives the provisions of this sentence.] The  notification  to  the
commissioner of economic development shall include the name, address and
telephone  and  facsimile  number  of the foreign business enterprise, a
brief description of the goods or services to be  obtained  pursuant  to
the  proposed  procurement contract, the amount of the proposed procure-
ment contract, the term of the proposed procurement  contract,  and  the
name  of  the individual at the foreign business enterprise or acting on
behalf of the same who  is  principally  responsible  for  the  proposed
procurement contract. Such notification shall be used by the commission-
er  of  economic  development solely to provide notification to New York
state business enterprises of opportunities to  participate  as  subcon-
tractors  and  suppliers  on  such procurement contracts, to promote and
encourage the location and development of new business in the state,  to
assist  New  York state business enterprises in obtaining offset credits
from foreign countries, and to otherwise investigate, study  and  under-
take  means  of promoting and encouraging the prosperous development and

S. 7508--A                         40                         A. 9508--A

protection of the legitimate interest and  welfare  of  New  York  state
business enterprises, industry and commerce.
  §  2.  Subdivision 7 of section 1209 of the public authorities law, as
amended by section 1 of part OO of chapter 54 of the laws  of  2016,  is
amended to read as follows:
  7.  (a)  Except  as  otherwise  provided in this section, all purchase
contracts for supplies, materials or equipment  involving  an  estimated
expenditure  in excess of one [hundred thousand] MILLION dollars and all
contracts for public work involving an estimated expenditure  in  excess
of  one  [hundred  thousand]  MILLION  dollars  shall  be awarded by the
authority to the lowest responsible bidder after obtaining  sealed  bids
in  the  manner  hereinafter set forth. The aforesaid shall not apply to
contracts for personal, architectural, engineering or other professional
services. The authority may reject all bids and obtain new bids  in  the
manner provided by this section when it is deemed in the public interest
to do so or, in cases where two or more responsible bidders submit iden-
tical  bids which are the lowest bids, award the contract to any of such
bidders or obtain new bids from such bidders. Nothing herein shall obli-
gate the authority to seek new bids after the rejection of bids or after
cancellation of an invitation to bid.  Nothing  in  this  section  shall
prohibit the evaluation of bids on the basis of costs or savings includ-
ing  life  cycle  costs  of  the  item  to  be purchased, discounts, and
inspection services so long as the invitation  to  bid  reasonably  sets
forth  the criteria to be used in evaluating such costs or savings. Life
cycle costs may include but shall not be limited  to  costs  or  savings
associated  with  installation,  energy  use, maintenance, operation and
salvage or disposal.
  (b) Section twenty-eight hundred seventy-nine of  this  chapter  shall
apply  to  the authority's acquisition of goods or services of any kind,
in the actual or estimated amount of fifteen thousand dollars  or  more,
provided  that  (i)  a  contract for services in the actual or estimated
amount of less than one [hundred thousand]  MILLION  dollars  shall  not
require  approval by the board of the authority regardless of the length
of the period over which the services are rendered, and provided further
that a contract for services in the actual or estimated  amount  of  one
[hundred thousand] MILLION dollars or more shall require approval by the
board of the authority regardless of the length of the period over which
the  services  are  rendered  unless  such  a contract is awarded to the
lowest responsible bidder after obtaining sealed bids and (ii) the board
of the authority may by resolution adopt guidelines that  authorize  the
award  of  contracts  to  small  business  concerns, to service disabled
veteran owned businesses certified pursuant to  article  seventeen-B  of
the  executive  law,  or  minority  or  women-owned business enterprises
certified pursuant  to  article  fifteen-A  of  the  executive  law,  or
purchases of goods or technology that are recycled or remanufactured, in
an  amount  not to exceed four hundred thousand dollars without a formal
competitive process and without further board approval. The board of the
authority shall adopt guidelines which shall be made publicly  available
for the awarding of such contract without a formal competitive process.
  §  3.  Subparagraph (i) of paragraph (f) and subparagraph (i) of para-
graph (g) of subdivision 9 of section 1209  of  the  public  authorities
law,  as  amended  by  section 3 of part OO of chapter 54 of the laws of
2016, are amended to read as follows:
  (i) Except for a contract  with  a  value  of  one  [hundred]  million
dollars or less that is awarded pursuant to this paragraph to the propo-
ser  whose  proposal  is  the  lowest  cost,  the  authority may award a

S. 7508--A                         41                         A. 9508--A

contract pursuant to this paragraph only after a resolution approved  by
a  two-thirds  vote of its members then in office at a public meeting of
the authority with such resolution (A) disclosing  the  other  proposers
and  the  substance  of their proposals, (B) summarizing the negotiation
process including the opportunities, if any, available to  proposers  to
present  and  modify their proposals, and (C) setting forth the criteria
upon which the selection was made provided however that for purposes  of
this  subparagraph  the  board  may,  at  its discretion, require such a
resolution be approved for contracts  with  a  value  of  one  [hundred]
million dollars or less.
  (i)  Except  for  a  contract  with  a  value of one [hundred] million
dollars or less that is awarded pursuant to this paragraph to the propo-
ser whose proposal is  the  lowest  cost,  the  authority  may  award  a
contract  pursuant to this paragraph only after a resolution approved by
a vote of not less than two-thirds of its members then in  office  at  a
public  meeting of the authority with such resolution (A) disclosing the
other proposers and the substance of their  proposals,  (B)  summarizing
the  negotiation  process including the opportunities, if any, available
to proposers to present and modify  their  proposals,  and  (C)  setting
forth  the  criteria  upon which the selection was made provided however
that for purposes of this subparagraph the board may, at its discretion,
require such a resolution be approved for contracts with a value of  one
[hundred] million dollars or less.
  §  4. Paragraphs (a) and (b) of subdivision 2 of section 1265-a of the
public authorities law, as amended by section 8 of part OO of chapter 54
of the laws of 2016, are amended to read as follows:
  (a) Except  as  otherwise  provided  in  this  section,  all  purchase
contracts  for  supplies,  materials or equipment involving an estimated
expenditure in excess of one [hundred thousand] MILLION dollars and  all
contracts  for  public work involving an estimated expenditure in excess
of one [hundred thousand]  MILLION  dollars  shall  be  awarded  by  the
authority  to  the lowest responsible bidder after obtaining sealed bids
in the manner hereinafter set forth. For purposes hereof, contracts  for
public work shall exclude contracts for personal, engineering and archi-
tectural,  or  professional  services. The authority may reject all bids
and obtain new bids in the manner provided by this section  when  it  is
deemed  in  the  public interest to do so or, in cases where two or more
responsible bidders submit identical bids which  are  the  lowest  bids,
award  the  contract to any of such bidders or obtain new bids from such
bidders. Nothing herein shall obligate the authority to  seek  new  bids
after  the  rejection  of bids or after cancellation of an invitation to
bid. Nothing in this section shall prohibit the evaluation  of  bids  on
the  basis of costs or savings including life cycle costs of the item to
be purchased, discounts, and inspection services so long as the  invita-
tion  to bid reasonably sets forth the criteria to be used in evaluating
such costs or savings. Life cycle costs may include  but  shall  not  be
limited  to  costs  or savings associated with installation, energy use,
maintenance, operation and salvage or disposal.
  (b) Section twenty-eight hundred seventy-nine of  this  chapter  shall
apply  to  the authority's acquisition of goods or services of any kind,
in the actual or estimated amount of fifteen thousand dollars  or  more,
provided  (i)  that  a  contract for services in the actual or estimated
amount of less than one [hundred thousand]  MILLION  dollars  shall  not
require  approval by the board of the authority regardless of the length
of the period over which the services are rendered, and provided further
that a contract for services in the actual or estimated  amount  of  one

S. 7508--A                         42                         A. 9508--A

[hundred thousand] MILLION dollars or more shall require approval by the
board of the authority regardless of the length of the period over which
the  services  are  rendered  unless  such  a contract is awarded to the
lowest  responsible  bidder  after  obtaining  sealed bids, and (ii) the
board of the authority may by resolution adopt guidelines that authorize
the award of contracts to small business concerns, to  service  disabled
veteran  owned  businesses  certified pursuant to article seventeen-B of
the executive law,  or  minority  or  women-owned  business  enterprises
certified  pursuant  to  article  fifteen-A  of  the  executive  law, or
purchases of goods or technology that are recycled or remanufactured, in
an amount not to exceed four hundred thousand dollars without  a  formal
competitive process and without further board approval. The board of the
authority  shall adopt guidelines which shall be made publicly available
for the awarding of such contract without a formal competitive process.
  § 5. Subdivision 22 of section 553 of the public authorities  law,  as
added  by  section  12  of part OO of chapter 54 of the laws of 2016, is
amended to read as follows:
  22. Section twenty-eight hundred seventy-nine of  this  chapter  shall
apply  to  the authority's acquisition of goods or services of any kind,
in the actual or estimated amount of fifteen thousand dollars  or  more,
provided  that  (i)  a  contract for services in the actual or estimated
amount of less than one [hundred thousand]  MILLION  dollars  shall  not
require  approval by the board of the authority regardless of the length
of the period over which the services are rendered, and provided further
that a contract for services in the actual or estimated  amount  of  one
[hundred thousand] MILLION dollars or more shall require approval by the
board of the authority regardless of the length of the period over which
the  services  are  rendered  unless  such  a contract is awarded to the
lowest responsible bidder after obtaining sealed bids and (ii) the board
of the authority may by resolution adopt guidelines that  authorize  the
award  of  contracts  to  small  business  concerns, to service disabled
veteran owned businesses certified  pursuant  to  article  [seventeen-b]
SEVENTEEN-B  of  the  executive law, or minority or women-owned business
enterprises certified pursuant to article [fifteen-a] FIFTEEN-A  of  the
executive  law, or purchases of goods or technology that are recycled or
remanufactured, in an amount not to exceed four hundred thousand dollars
without a formal competitive process and without further board approval.
The board of the authority shall adopt guidelines which  shall  be  made
publicly  available  for  the awarding of such contract without a formal
competitive process.
  § 6. Section 1266 of the public authorities law is amended by adding a
new subdivision 19 to read as follows:
  19. THE BOARD OF THE AUTHORITY SHALL BE AUTHORIZED TO TERMINATE, MODI-
FY OR AMEND ANY SERVICE OR  FUNDING  AGREEMENT  APPROVED  PRIOR  TO  THE
EFFECTIVE DATE OF THIS SUBDIVISION THAT DOES NOT INCLUDE A DEFINED DURA-
TION  TERM, OR CONTAINS AN INITIAL TERM THAT EXPLICITLY OR IN EFFECT HAS
A DURATION LONGER THAN TWENTY YEARS.
  § 7. This act shall take effect  April  1,  2018;  provided  that  the
amendments  to  subdivisions  7  and 9 of section 1209, subdivision 2 of
section 1265-a, and subdivision 22 of section 553 of the public authori-
ties law made by sections two, three, four, and five of this  act  shall
be  subject to the expiration and reversion or repeal of such provisions
pursuant to section 15 of part OO of chapter 54 of the laws of 2016,  as
amended, and shall expire and be deemed repealed therewith.

                                 PART O

S. 7508--A                         43                         A. 9508--A

  Section  1.  Subdivision 3 of section 16-m of section 1 of chapter 174
of the laws of 1968 constituting the New York  state  urban  development
corporation  act, as amended by section 1 of part M of chapter 58 of the
laws of 2017, is amended to read as follows:
  3.  The  provisions  of this section shall expire, notwithstanding any
inconsistent provision of subdivision 4 of section 469 of chapter 309 of
the laws of 1996 or of any other law, on July 1, [2018] 2019.
  § 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after July 1, 2018.

                                 PART P

  Section  1. Section 2 of chapter 393 of the laws of 1994, amending the
New York state urban development corporation act, relating to the powers
of the New York state urban development corporation to  make  loans,  as
amended  by  section  1  of part N of chapter 58 of the laws of 2017, is
amended to read as follows:
  § 2. This act shall take effect immediately  provided,  however,  that
section  one  of  this act shall expire on July 1, [2018] 2019, at which
time the provisions of subdivision 26 of section 5 of the New York state
urban development corporation act shall be  deemed  repealed;  provided,
however,  that neither the expiration nor the repeal of such subdivision
as provided for herein shall be deemed to affect or impair in any manner
any loan made pursuant to the authority of  such  subdivision  prior  to
such expiration and repeal.
  §  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2018.

                                 PART Q

  Section 1. Subdivisions 2, 7, 8, 13, 14, 15, 16, 19, 20, 21 and 22  of
section  310  of the executive law, subdivisions 2, 8 and 14 as added by
chapter 261 of the laws of 1988, subdivisions 7 and  15  as  amended  by
chapter 22 of the laws of 2014, subdivision 13 as amended by chapter 506
of  the laws of 2009, subdivision 16, as amended by section 3 of part BB
of chapter 59 of the laws of 2006, subdivisions 19, 20,  21  and  22  as
added  by chapter 175 of the laws of 2010 are amended and a new subdivi-
sion 24 is added to read as follows:
  2. "Contracting agency" shall mean  a  state  agency  OR  STATE-FUNDED
ENTITY  which  is a party or a proposed party to a state contract or, in
the case of a state contract described in paragraph (c)  of  subdivision
thirteen  of this section, shall mean the New York state housing finance
agency, housing trust fund  corporation  or  affordable  housing  corpo-
ration, whichever has made or proposes to make the grant or loan for the
state assisted housing project.
  7.  "Minority-owned  business enterprise" shall mean a business enter-
prise, including a sole proprietorship, partnership,  limited  liability
company or corporation that is:
  (a)  at  least  fifty-one  percent owned by one or more minority group
members;
  (b) an enterprise in which such minority ownership is  real,  substan-
tial and continuing;
  (c)  an  enterprise in which such minority ownership has and exercises
the authority to control independently the day-to-day business decisions
of the enterprise;

S. 7508--A                         44                         A. 9508--A

  (d) an enterprise authorized to do business in this  state  and  inde-
pendently owned and operated;
  (e)  an enterprise owned by an individual or individuals, whose owner-
ship, control and operation are relied upon for  certification,  with  a
personal net worth that does not exceed three million five hundred thou-
sand  dollars,  OR  SUCH OTHER AMOUNT AS THE DIRECTOR SHALL SET FORTH IN
REGULATIONS, as adjusted annually on the first of January for  inflation
according to the consumer price index of the previous year; and
  (f)  an  enterprise  that  is a small business pursuant to subdivision
twenty of this section.
  8. "Minority group member" shall  mean  a  United  States  citizen  or
permanent resident alien who is and can demonstrate membership in one of
the following groups:
  (a)  Black  persons  having origins in any of the Black African racial
groups;
  (b) Hispanic persons  of  Mexican,  Puerto  Rican,  Dominican,  Cuban,
Central  or  South American of either Indian or Hispanic origin, regard-
less of race;
  (c) Native American or Alaskan native persons having origins in any of
the original peoples of North America.
  (d) Asian and Pacific Islander persons having origins in  any  of  the
Far  East  countries,  South  East  Asia, the Indian subcontinent or the
Pacific Islands.
  13. "State contract" shall mean: (a) a written agreement  or  purchase
order  instrument, providing for a total expenditure in excess of [twen-
ty-five] FIFTY thousand dollars, whereby a contracting agency is commit-
ted to expend or does  expend  OR  GRANT  funds  in  return  for  labor,
services including but not limited to legal, financial and other profes-
sional  services,  supplies,  equipment, materials or any combination of
the foregoing, to be performed for, or  rendered  or  furnished  to  the
contracting  agency;  (b)  a  written  agreement  in excess of [one] TWO
hundred thousand dollars whereby a contracting agency  is  committed  to
expend  or does expend OR GRANT funds for the acquisition, construction,
demolition, replacement, major repair or renovation of real property and
improvements thereon; [and] (c) a written agreement in excess  of  [one]
TWO hundred thousand dollars whereby the owner of a state assisted hous-
ing project is committed to expend or does expend funds for the acquisi-
tion,  construction, demolition, replacement, major repair or renovation
of real property and improvements thereon for such project;  AND  (D)  A
WRITTEN  AGREEMENT  OR  PURCHASE ORDER INSTRUMENT, PROVIDING FOR A TOTAL
EXPENDITURE IN EXCESS OF FIFTY THOUSAND DOLLARS, WHEREBY A  STATE-FUNDED
ENTITY  IS  COMMITTED  TO EXPEND OR DOES EXPEND FUNDS PAID TO THE STATE-
FUNDED ENTITY BY THE STATE OF NEW YORK,  INCLUDING  THOSE  PAID  TO  THE
STATE-FUNDED  ENTITY  PURSUANT  TO  AN APPROPRIATION, FOR ANY PRODUCT OR
SERVICE.
  14. "Subcontract" shall mean  an  agreement  [providing  for  a  total
expenditure   in   excess   of  twenty-five  thousand  dollars  for  the
construction, demolition, replacement, major repair,  renovation,  plan-
ning  or  design  of  real  property and improvements thereon] between a
contractor and any individual or business enterprise, including  a  sole
proprietorship, partnership, corporation, or not-for-profit corporation,
in  which  a portion of a contractor's obligation under a state contract
is undertaken or assumed, but shall not include any construction,  demo-
lition,  replacement,  major  repair,  renovation, planning or design of
real property or improvements thereon for  the  beneficial  use  of  the
contractor.

S. 7508--A                         45                         A. 9508--A

  15.  "Women-owned  business  enterprise"  shall mean a business enter-
prise, including a sole proprietorship, partnership,  limited  liability
company or corporation that is:
  (a)  at  least  fifty-one  percent  owned by one or more United States
citizens or permanent resident aliens who are women;
  (b) an enterprise in which the ownership interest  of  such  women  is
real, substantial and continuing;
  (c)  an enterprise in which such women ownership has and exercises the
authority to control independently the day-to-day business decisions  of
the enterprise;
  (d)  an  enterprise  authorized to do business in this state and inde-
pendently owned and operated;
  (e) an enterprise owned by an individual or individuals, whose  owner-
ship,  control  and  operation are relied upon for certification, with a
personal net worth that does not exceed three million five hundred thou-
sand dollars, OR SUCH OTHER AMOUNT AS THE DIRECTOR SHALL  SET  FORTH  IN
REGULATIONS,  as adjusted annually on the first of January for inflation
according to the consumer price index of the previous year; and
  (f) an enterprise that is a small  business  pursuant  to  subdivision
twenty of this section.
  A  firm  owned  by  a minority group member who is also a woman may be
certified as a minority-owned business enterprise, a  women-owned  busi-
ness  enterprise, or both, and may be counted towards either a minority-
owned business enterprise goal  or  a  women-owned  business  enterprise
goal, in regard to any contract or any goal, set by an agency or author-
ity,  but such participation may not be counted towards both such goals.
Such an enterprise's participation in a  contract  may  not  be  divided
between  the minority-owned business enterprise goal and the women-owned
business enterprise goal.
  16. "Statewide advocate"  shall  mean  the  person  appointed  by  the
[commissioner]  DIRECTOR  to  serve  in the capacity of the minority and
women-owned business enterprise statewide advocate.
  19. "Personal net worth" shall mean the aggregate adjusted  net  value
of  the  assets  of  an individual remaining after total liabilities are
deducted. Personal net worth includes the individual's share  of  assets
held  jointly  with  said  individual's  spouse and does not include the
individual's ownership interest in the  certified  minority  and  women-
owned business enterprise, the individual's [equity in his or her prima-
ry residence] OWNERSHIP INTEREST IN ANY HOLDING COMPANY THAT LEASES REAL
PROPERTY, MACHINERY, EQUIPMENT, OR VEHICLES EXCLUSIVELY TO THE CERTIFIED
MINORITY  OR  WOMEN-OWNED BUSINESS ENTERPRISE, UP TO TWO HUNDRED PERCENT
OF THE MEDIAN VALUE OF OWNER-OCCUPIED HOUSING UNITS IN THE  MUNICIPALITY
IN  WHICH THE INDIVIDUAL RESIDES, or up to five hundred thousand dollars
of the present cash value of any qualified retirement  savings  plan  or
individual  retirement account held by the individual less any penalties
for early withdrawal.
  20. "Small business" as used in this section, unless  otherwise  indi-
cated,  shall  mean a business which has a significant business presence
in the state, is independently owned and operated, not dominant  in  its
field and employs, based on its industry, a certain number of persons as
determined  by  the  director[, but not to exceed three hundred], taking
into consideration factors which include, but are not limited to, feder-
al small business administration standards pursuant to 13 CFR  part  121
and  any  amendments  thereto. The director may issue regulations on the
construction of the terms in this definition.

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  21. "The [2010] disparity  study"  shall  refer  to  the  MOST  RECENT
disparity  study  commissioned  by  the [empire state development corpo-
ration] DEPARTMENT OF ECONOMIC DEVELOPMENT, pursuant  to  section  three
hundred  twelve-a  of this article[, and published on April twenty-nine,
two thousand ten].
  22.  "Diversity  practices"  shall mean the contractor's practices and
policies with respect to:
  (a) [utilizing] MENTORING certified minority and women-owned  business
enterprises  in  contracts  awarded  by  a  state agency or other public
corporation, as subcontractors and suppliers; [and]
  (b) entering  into  partnerships,  joint  ventures  or  other  similar
arrangements  with  certified  minority  and women-owned business enter-
prises as defined in this article or other applicable statute  or  regu-
lation  governing  an  entity's  utilization  of minority or women-owned
business enterprises; AND
  (C) THE REPRESENTATION OF MINORITY GROUP MEMBERS AND WOMEN AS  MEMBERS
OF THE BOARD OF DIRECTORS OR EXECUTIVE OFFICERS OF THE CONTRACTOR.
  24.  "STATE-FUNDED  ENTITY"  SHALL  MEAN ANY UNIT OF LOCAL GOVERNMENT,
INCLUDING, BUT NOT LIMITED TO, A COUNTY, CITY, TOWN, VILLAGE, OR  SCHOOL
DISTRICT  THAT  IS PAID PURSUANT TO AN APPROPRIATION IN ANY STATE FISCAL
YEAR.
  § 2. Subdivision 4 of section 311 of the executive law, as amended  by
chapter 361 of the laws of 2009, is amended to read as follows:
  4.  The  director  [may]  SHALL  provide assistance to, and facilitate
access to programs serving [certified businesses as well as  applicants]
MINORITY  AND WOMEN-OWNED BUSINESS ENTERPRISES to ensure that such busi-
nesses benefit, as needed, from technical, managerial and financial, and
general  business  assistance;  training;  marketing;  organization  and
personnel  skill  development; project management assistance; technology
assistance; bond and insurance education assistance; and other  business
development  assistance.  THE DIRECTOR SHALL MAINTAIN A TOLL-FREE NUMBER
AT THE DEPARTMENT OF ECONOMIC DEVELOPMENT TO BE USED TO ANSWER QUESTIONS
CONCERNING THE MWBE CERTIFICATION PROCESS.  In  addition,  the  director
may, either independently or in conjunction with other state agencies:
  (a)  develop  a  clearinghouse of information on programs and services
provided by entities that may assist such businesses;
  (b) review bonding and paperwork requirements imposed  by  contracting
agencies that may unnecessarily impede the ability of such businesses to
compete; and
  (c)  seek to maximize utilization by minority and women-owned business
enterprises of available federal resources including but not limited  to
federal grants, loans, loan guarantees, surety bonding guarantees, tech-
nical  assistance,  and programs and services of the federal small busi-
ness administration.
  § 3. Section 311-a of the executive law, as added by section 4 of part
BB of chapter 59 of the laws of 2006, is amended to read as follows:
  § 311-a. Minority and women-owned business enterprise statewide  advo-
cate.  1.  There is hereby established within the [department of econom-
ic] DIVISION OF MINORITY AND WOMEN'S BUSINESS development [an office  of
the  minority and women-owned business enterprise] A statewide advocate.
The statewide advocate shall be appointed by the [commissioner with  the
advice  of  the  small business advisory board as established in section
one hundred thirty-three of the economic development law and shall serve
in the unclassified service of the] director.  [The  statewide  advocate
shall be located in the Albany empire state development office.]

S. 7508--A                         47                         A. 9508--A

  2.  The  advocate  shall act as a liaison for minority and women-owned
business enterprises (MWBEs) to  assist  them  in  obtaining  technical,
managerial,  financial and other business assistance for certified busi-
nesses and  applicants.  The  advocate  shall  RECEIVE  AND  investigate
complaints  brought  by  or on behalf of MWBEs concerning [certification
delays and instances of] violations of [law] THE  REQUIREMENTS  OF  THIS
ARTICLE by CONTRACTORS AND state agencies. [The statewide advocate shall
assist certified businesses and applicants in the certification process.
Other  functions  of  the  statewide  advocate  shall be directed by the
commissioner. The advocate may request  and  the  director  may  appoint
staff  and  employees  of  the  division  of minority and women business
development to support the administration of the office of the statewide
advocate.]
  3. The statewide advocate [shall establish a toll-free number  at  the
department  of  economic  development  to  be  used  to answer questions
concerning the MWBE certification process] SHALL CONDUCT PERIODIC AUDITS
OF STATE AGENCIES' COMPLIANCE WITH THE  REQUIREMENTS  OF  SECTION  THREE
HUNDRED  FIFTEEN OF THIS ARTICLE, WHICH AUDITS SHALL INCLUDE A REVIEW OF
THE BOOKS AND RECORDS OF STATE AGENCIES CONCERNING, AMONG OTHER  THINGS,
ANNUAL  AGENCY EXPENDITURES, ANNUAL PARTICIPATION OF MINORITY AND WOMEN-
OWNED BUSINESS ENTERPRISES AS PRIME CONTRACTORS  AND  SUBCONTRACTORS  IN
STATE  AGENCIES'  STATE  CONTRACTS, AND DOCUMENTATION OF STATE AGENCIES'
GOOD FAITH EFFORTS TO MAXIMIZE MINORITY AND WOMEN-OWNED BUSINESS  ENTER-
PRISE PARTICIPATION IN SUCH STATE AGENCIES' CONTRACTING.
  [4.  The  statewide  advocate shall report to the director and commis-
sioner by November fifteenth  on  an  annual  basis  on  all  activities
related  to  fulfilling  the  obligations of the office of the statewide
advocate. The commissioner shall include the unedited text of the state-
wide advocate's report within the reports submitted by the department of
economic development to the governor and the legislature.]
  § 4. Section 312-a of the executive law, as amended by  section  1  of
part Q of chapter 58 of the laws of 2015, is amended to read as follows:
  §  312-a.  Study  of  minority  and  women-owned  business [enterprise
programs] ENTERPRISES. 1. The director of the division of  minority  and
[women-owned] WOMEN'S business development [in the department of econom-
ic  development]  is authorized and directed to recommission a statewide
disparity study regarding the participation of minority and  women-owned
business  enterprises  in  state  contracts  since the amendment of this
article to be delivered to the governor and legislature [no  later  than
August  fifteenth, two thousand sixteen]. The study shall be prepared by
an entity independent of the department and selected through  a  request
for proposal process. The purpose of such study is:
  (a)  to  determine  whether there is a disparity between the number of
qualified minority and women-owned businesses ready, willing and able to
perform state contracts for commodities, services and construction,  and
the  number  of  such  contractors  actually  engaged  to  perform  such
contracts, and to determine what changes, if  any,  should  be  made  to
state  policies affecting minority and women-owned business enterprises;
and (b) to determine whether there is a disparity between the number  of
qualified  minorities and women ready, willing and able, with respect to
labor markets, qualifications and other relevant factors, to participate
in contractor employment, management level bodies, including  boards  of
directors,  and as senior executive officers within contracting entities
and the number of such group members  actually  employed  or  affiliated
with  state  contractors in the aforementioned capacities, and to deter-
mine what changes, if any, should be made to  state  policies  affecting

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minority  and  women group populations with regard to state contractors'
employment and appointment practices relative to diverse group  members.
Such  study  shall  include,  but  not be limited to, an analysis of the
history  of  minority  and  women-owned business enterprise programs and
their effectiveness as a means of securing and ensuring participation by
minorities and women, and a disparity analysis by market area and region
of the state. Such  study  shall  distinguish  between  minority  males,
minority females and non-minority females in the statistical analysis.
  2.  The director of the division of minority and [women-owned] WOMEN'S
business development is directed to transmit the disparity study to  the
governor and the legislature [not later than August fifteenth, two thou-
sand sixteen], and to post the study on the website of the department of
economic development.
  §  5.  Section  313 of the executive law, as amended by chapter 175 of
the laws of 2010, is amended to read as follows:
  § 313. Opportunities for  minority  and  women-owned  business  enter-
prises.  1.  [Goals and requirements for agencies and contractors.  Each
agency shall structure procurement procedures for contracts made direct-
ly or indirectly to minority and women-owned  business  enterprises,  in
accordance  with  the  findings of the two thousand ten disparity study,
consistent with the purposes of this article, to attempt to achieve  the
following results with regard to total annual statewide procurement:
  (a) construction industry for certified minority-owned business enter-
prises: fourteen and thirty-four hundredths percent;
  (b)  construction  industry  for certified women-owned business enter-
prises: eight and forty-one hundredths percent;
  (c) construction related professional services industry for  certified
minority-owned  business enterprises: thirteen and twenty-one hundredths
percent;
  (d) construction related professional services industry for  certified
women-owned  business  enterprises:  eleven  and  thirty-two  hundredths
percent;
  (e) non-construction related services industry for  certified  minori-
ty-owned business enterprises: nineteen and sixty hundredths percent;
  (f)  non-construction  related  services industry for certified women-
owned business enterprises: seventeen and forty-four hundredths percent;
  (g) commodities industry for certified minority-owned business  enter-
prises: sixteen and eleven hundredths percent;
  (h)  commodities  industry  for  certified women-owned business enter-
prises:  ten and ninety-three hundredths percent;
  (i) overall agency total dollar value  of  procurement  for  certified
minority-owned  business enterprises: sixteen and fifty-three hundredths
percent;
  (j) overall agency total dollar value  of  procurement  for  certified
women-owned  business  enterprises:  twelve  and  thirty-nine hundredths
percent; and
  (k) overall agency total dollar value  of  procurement  for  certified
minority,  women-owned business enterprises: twenty-eight and ninety-two
hundredths percent.
  1-a. The director  shall  ensure  that  each  state  agency  has  been
provided with a copy of the two thousand ten disparity study.
  1-b.  Each  agency shall develop and adopt agency-specific goals based
on the findings of the two thousand ten disparity study.
  2.] The director shall promulgate rules and regulations  [pursuant  to
the  goals  established in subdivision one of this section] that provide
measures and procedures to ensure that  certified  minority  and  women-

S. 7508--A                         49                         A. 9508--A

owned  businesses  shall  be  given the opportunity for maximum feasible
participation in the performance of state contracts and to assist in the
agency's identification of those state contracts for which minority  and
women-owned  certified  businesses may best bid to actively and affirma-
tively promote and assist their  participation  in  the  performance  of
state  contracts  [so  as  to facilitate the agency's achievement of the
maximum feasible portion of the goals for state contracts to such  busi-
nesses].
  [2-a.]  2.  The  director  shall promulgate rules and regulations that
will accomplish the following:
  (a) provide for the certification and decertification of minority  and
women-owned business enterprises for all agencies through a single proc-
ess that meets applicable requirements;
  (b) require that each contract solicitation document accompanying each
solicitation  set  forth the expected degree of minority and women-owned
business enterprise participation based, in part, on:
  (i) the potential subcontract opportunities  available  in  the  prime
procurement contract; [and]
  (ii)  the  availability[, as contained within the study,] of certified
minority and women-owned business enterprises to  respond  competitively
to  the  potential  subcontract opportunities, AS REFLECTED IN THE DIVI-
SION'S DIRECTORY OF CERTIFIED MINORITY AND WOMEN-OWNED  BUSINESS  ENTER-
PRISES; AND
  (III) THE FINDINGS OF THE DISPARITY STUDY.
  (c)  [require  that  each  agency  provide a current list of certified
minority business enterprises to each prospective contractor;
  (d)] allow a contractor that is a certified minority-owned  or  women-
owned  business  enterprise to use the work it performs to meet require-
ments for use of certified minority-owned or women-owned business enter-
prises as subcontractors;
  (D) ESTABLISH CRITERIA FOR AGENCIES TO  CREDIT  THE  PARTICIPATION  OF
MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES TOWARDS THE ACHIEVEMENT OF
THE  MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISE PARTICIPATION GOALS ON
A STATE CONTRACT BASED ON THE COMMERCIALLY USEFUL FUNCTION  PROVIDED  BY
EACH MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISE ON THE CONTRACT;
  (e)  provide for joint ventures, which a bidder may count toward meet-
ing its minority and women-owned business enterprise participation;
  (f) consistent with subdivision  six  of  this  section,  provide  for
circumstances  under  which  an  agency OR STATE-FUNDED ENTITY may waive
obligations of the contractor relating to minority and women-owned busi-
ness enterprise participation;
  (g) require that an agency OR STATE-FUNDED ENTITY verify that minority
and women-owned business enterprises listed  in  a  successful  bid  are
actually participating to the extent listed in the project for which the
bid was submitted;
  (h)  provide  for  the  collection  of statistical data by each agency
concerning actual minority and women-owned business  enterprise  partic-
ipation; [and]
  (i)  require  each  agency to consult the most current disparity study
when calculating [agency-wide and contract  specific]  CONTRACT-SPECIFIC
participation goals pursuant to this article; AND
  (J)  PROVIDE  FOR THE PERIODIC COLLECTION OF REPORTS FROM STATE-FUNDED
ENTITIES IN SUCH FORM AND AT SUCH TIME AS THE DIRECTOR SHALL REQUIRE.
  3. Solely for the purpose of providing the opportunity for  meaningful
participation  by  certified  businesses  in  the  performance  of state
contracts as provided in this section,  state  contracts  shall  include

S. 7508--A                         50                         A. 9508--A

leases  of  real property by a state agency to a lessee where: the terms
of such leases provide for the  construction,  demolition,  replacement,
major  repair or renovation of real property and improvements thereon by
such lessee; and the cost of such construction, demolition, replacement,
major  repair  or  renovation  of real property and improvements thereon
shall exceed the sum of [one] TWO hundred thousand dollars.  Reports  to
the  director  pursuant to section three hundred fifteen of this article
shall include activities with  respect  to  all  such  state  contracts.
Contracting  agencies  shall  include  or  require  to  be included with
respect to state contracts for the  acquisition,  construction,  demoli-
tion,  replacement,  major  repair  or  renovation  of real property and
improvements thereon, such provisions as may be necessary to  effectuate
the  provisions  of  this  section  in every bid specification and state
contract, including,  but  not  limited  to:  (a)  provisions  requiring
contractors  to make a good faith effort to solicit active participation
by enterprises identified  in  the  directory  of  certified  businesses
[provided  to  the  contracting agency by the office]; (b) requiring the
parties to agree as a condition of entering into such  contract,  to  be
bound  by  the provisions of section three hundred sixteen of this arti-
cle; and (c) requiring the contractor  to  include  the  provisions  set
forth in paragraphs (a) and (b) of this subdivision in every subcontract
in  a manner that the provisions will be binding upon each subcontractor
as to work in connection with such contract. Provided, however, that  no
such  provisions  shall be binding upon contractors or subcontractors in
the performance of work or the provision of services that are unrelated,
separate or distinct from the state contract as expressed by its  terms,
and  nothing  in  this  section  shall  authorize  the  director  or any
contracting agency to impose any requirement on a contractor or  subcon-
tractor except with respect to a state contract.
  4. In the implementation of this section, the contracting agency shall
(a) consult the findings contained within the disparity study evidencing
relevant   industry  specific  [availability  of  certified  businesses]
DISPARITIES IN THE UTILIZATION OF MINORITY  AND  WOMEN-OWNED  BUSINESSES
RELATIVE TO THEIR AVAILABILITY;
  (b)  implement  a program that will enable the agency to evaluate each
contract to determine the  [appropriateness  of  the]  APPROPRIATE  goal
[pursuant  to  subdivision  one  of  this  section] FOR PARTICIPATION BY
MINORITY-OWNED   BUSINESS   ENTERPRISES   AND    WOMEN-OWNED    BUSINESS
ENTERPRISES;
  (c)  consider  where  practicable,  the  severability  of construction
projects and other bundled contracts; and
  (d) consider compliance with  the  requirements  of  any  federal  law
concerning  opportunities  for  minority and women-owned business enter-
prises which effectuates the purpose of this  section.  The  contracting
agency shall determine whether the imposition of the requirements of any
such  law  duplicate  or conflict with the provisions hereof and if such
duplication or conflict exists, the contracting agency shall  waive  the
applicability  of  this  section  to  the  extent of such duplication or
conflict.
  5. (a) Contracting agencies shall administer the rules and regulations
promulgated by the director in a good faith effort to [meet] ACHIEVE the
maximum feasible [portion of the agency's goals  adopted]  PARTICIPATION
OF  MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES pursuant to this arti-
cle and the regulations of the director.  Such  rules  and  regulations:
shall  require  a contractor to submit a utilization plan after bids are
opened, when bids are required, but  prior  to  the  award  of  a  state

S. 7508--A                         51                         A. 9508--A

contract; shall require the contracting agency to review the utilization
plan  submitted  by the contractor [and to post the utilization plan and
any waivers of compliance issued pursuant to  subdivision  six  of  this
section  on  the  website of the contracting agency] within a reasonable
period of time  as  established  by  the  director;  shall  require  the
contracting  agency  to notify the contractor in writing within a period
of time specified by the director as to any  deficiencies  contained  in
the contractor's utilization plan; shall require remedy thereof within a
period  of  time specified by the director; shall require the contractor
to submit periodic compliance reports  relating  to  the  operation  and
implementation  of  any  utilization plan; shall not allow any automatic
waivers but shall allow a contractor to apply for  a  partial  or  total
waiver of the minority and women-owned business enterprise participation
requirements  pursuant  to  subdivisions  six and seven of this section;
shall allow a contractor to file a complaint with the director  pursuant
to  subdivision  eight of this section in the event a contracting agency
has failed or refused to issue a waiver of the minority and  women-owned
business  enterprise  participation  requirements  or  has  denied  such
request for a waiver; and shall allow a contracting  agency  to  file  a
complaint with the director pursuant to subdivision nine of this section
in  the  event  a contractor is failing or has failed to comply with the
minority and women-owned business enterprise participation  requirements
set forth in the state contract where no waiver has been granted.
  (b) The rules and regulations promulgated pursuant to this subdivision
regarding  a  utilization plan shall provide that where enterprises have
been identified within a utilization plan, a contractor  shall  attempt,
in  good  faith, to utilize such enterprise at least to the extent indi-
cated. A contracting agency may require a contractor to indicate, within
a utilization plan, what measures and procedures he or  she  intends  to
take to comply with the provisions of this article, but may not require,
as  a  condition  of  award  of,  or  compliance with, a contract that a
contractor  utilize  a  particular  enterprise  in  performance  of  the
contract.
  (c) Without limiting other grounds for the disqualification of bids or
proposals  on  the basis of non-responsibility, a contracting agency may
disqualify the bid or proposal of a contractor as being  non-responsible
for  failure  to  remedy notified deficiencies contained in the contrac-
tor's utilization plan within a period of time specified in  regulations
promulgated  by  the director after receiving notification of such defi-
ciencies from the contracting agency. Where failure to remedy any  noti-
fied  deficiency  in  the utilization plan is a ground for disqualifica-
tion, that issue and all other grounds  for  disqualification  shall  be
stated in writing by the contracting agency. Where the contracting agen-
cy states that a failure to remedy any notified deficiency in the utili-
zation  plan  is  a  ground for disqualification the contractor shall be
entitled to an  administrative  hearing,  on  a  record,  involving  all
grounds  stated  by  the  contracting  agency.  Such  hearing  shall  be
conducted by the appropriate authority  of  the  contracting  agency  to
review  the  determination  of  disqualification. A final administrative
determination made following such  hearing  shall  be  reviewable  in  a
proceeding  commenced  under article seventy-eight of the civil practice
law and rules, provided that such proceeding is commenced within  thirty
days  of  the  notice  given  by certified mail return receipt requested
rendering such final administrative determination. Such proceeding shall
be commenced in the supreme court, appellate division, third  department
and  such  proceeding  shall  be  preferred  over all other civil causes

S. 7508--A                         52                         A. 9508--A

except election causes, and shall be heard and determined in  preference
to  all  other  civil business pending therein, except election matters,
irrespective of position on the calendar. Appeals taken to the court  of
appeals  of  the  state of New York shall be subject to the same prefer-
ence.
  6. Where it appears that a  contractor  cannot,  after  a  good  faith
effort,  comply  with  the  minority and women-owned business enterprise
participation requirements set forth in a particular state  contract,  a
contractor  may  file  a written application with the contracting agency
requesting a partial or total waiver of such requirements setting  forth
the  reasons  for  such contractor's inability to meet any or all of the
participation requirements together with an explanation of  the  efforts
undertaken  by the contractor to obtain the required minority and women-
owned business enterprise participation. In implementing the  provisions
of  this  section,  the contracting agency shall consider the number and
types of minority and women-owned business enterprises [located]  AVAIL-
ABLE  TO  PROVIDE  GOODS  OR SERVICES REQUIRED UNDER THE CONTRACT in the
region in which the state contract is to be performed, the total  dollar
value  of  the state contract, the scope of work to be performed and the
project size and term. If, based on such considerations, the contracting
agency determines there is not a reasonable availability of  contractors
on  the  list of certified business to furnish services for the project,
it shall issue a waiver of compliance to the contractor. In making  such
determination,  the  contracting  agency shall first consider the avail-
ability of other business enterprises located in the  region  and  shall
thereafter  consider  the  financial ability of minority and women-owned
businesses located outside the region in which the  contract  is  to  be
performed to perform the state contract.
  7.  For  purposes  of  determining a contractor's good faith effort to
comply with the requirements of this section or  to  be  entitled  to  a
waiver therefrom the contracting agency shall consider:
  (a)  whether  the  contractor  has  [advertised in general circulation
media, trade association publications, and minority-focus and  women-fo-
cus  media  and, in such event, (i) whether or not certified minority or
women-owned businesses which  have  been  solicited  by  the  contractor
exhibited  interest  in submitting proposals for a particular project by
attending] ATTENDED a pre-bid conference, IF ANY, SCHEDULED BY THE STATE
AGENCY AWARDING THE STATE CONTRACT WITH CERTIFIED  MINORITY  AND  WOMEN-
OWNED BUSINESS ENTERPRISES; and
  [(ii)  whether  certified  businesses which have been solicited by the
contractor have responded in a timely fashion to the contractor's solic-
itations for timely competitive bid quotations prior to the  contracting
agency's bid date; and]
  (b)  whether  [there  has been] THE CONTRACTOR PROVIDED TIMELY written
notification OF SUBCONTRACTING OPPORTUNITIES ON THE  STATE  CONTRACT  to
appropriate  certified businesses that appear in the directory of certi-
fied businesses prepared pursuant to paragraph (f) of subdivision  three
of section three hundred eleven of this article; and
  (c) whether the contractor can reasonably structure the amount of work
to  be  performed under subcontracts in order to increase the likelihood
of participation by certified businesses.
  8. In the event that a contracting agency fails or refuses to issue  a
waiver to a contractor as requested within twenty days after having made
application  therefor  pursuant to subdivision six of this section or if
the contracting agency denies such application, in whole or in part, the
contractor may file a complaint with the director  pursuant  to  section

S. 7508--A                         53                         A. 9508--A

three  hundred  sixteen  of  this  article  setting  forth the facts and
circumstances giving rise to the contractor's complaint together with  a
demand  for  relief. The contractor shall serve a copy of such complaint
upon  the  contracting  agency by personal service or by certified mail,
return receipt requested. The contracting agency shall  be  afforded  an
opportunity to respond to such complaint in writing.
  9.  If,  after  the  review of a contractor's minority and women owned
business utilization plan or review of a periodic compliance report  and
after  such  contractor has been afforded an opportunity to respond to a
notice of deficiency issued by  the  contracting  agency  in  connection
therewith, it appears that a contractor is failing or refusing to comply
with the minority and women-owned business participation requirements as
set  forth  in the state contract and where no waiver from such require-
ments has been granted,  the  contracting  agency  may  file  a  written
complaint with the director pursuant to section three hundred sixteen of
this  article  setting  forth the facts and circumstances giving rise to
the contracting agency's complaint together with a  demand  for  relief.
The  contracting  agency  shall  serve a copy of such complaint upon the
contractor by personal service or  by  certified  mail,  return  receipt
requested. The contractor shall be afforded an opportunity to respond to
such complaint in writing.
  §  6. Section 314 of the executive law, as added by chapter 261 of the
laws of 1988, subdivision 2-a as amended by chapter 175 of the  laws  of
2010, subdivision 4 as amended and subdivision 5 as added by chapter 399
of the laws of 2014, is amended to read as follows:
  § 314. Statewide  certification program. 1. The director shall promul-
gate rules and regulations providing for the establishment of  a  state-
wide certification program including rules and regulations governing the
approval,  denial  or  revocation  of any such certification. SUCH RULES
SHALL SET FORTH THE MAXIMUM PERSONAL  NET  WORTH  OF  A  MINORITY  GROUP
MEMBER OR WOMAN WHO MAY BE RELIED UPON TO CERTIFY A BUSINESS AS A MINOR-
ITY-OWNED  BUSINESS  ENTERPRISE  OR WOMEN-OWNED BUSINESS ENTERPRISE, AND
MAY ESTABLISH DIFFERENT MAXIMUM LEVELS OF PERSONAL NET WORTH FOR MINORI-
TY GROUP MEMBERS AND WOMEN ON AN  INDUSTRY-BY-INDUSTRY  BASIS  FOR  SUCH
INDUSTRIES  AS  THE DIRECTOR SHALL DETERMINE. Such rules and regulations
shall include, but not be limited to, such matters as may be required to
ensure that the established procedures thereunder shall at least  be  in
compliance  with  the code of fair procedure set forth in section seven-
ty-three of the civil rights law.
  2. For the purposes of this article, the office shall  be  responsible
for  verifying  businesses  as  being owned, operated, and controlled by
minority group members or women and for certifying such  verified  busi-
nesses.  The  director shall prepare a directory of certified businesses
for use by contracting agencies and  contractors  in  carrying  out  the
provisions  of  this article. The director shall periodically update the
directory.
  2-a. (a) The director shall establish a procedure enabling the  office
to  accept New York municipal corporation certification verification for
minority and women-owned  business  enterprise  applicants  in  lieu  of
requiring the applicant to complete the state certification process. The
director  shall  promulgate  rules and regulations to set forth criteria
for the acceptance of municipal corporation certification. All  eligible
municipal  corporation certifications shall require business enterprises
seeking certification to meet the following standards:

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  (i) have at least fifty-one percent  ownership  by  a  minority  or  a
women-owned  enterprise and be owned by United States citizens or perma-
nent resident aliens;
  (ii)  be  an  enterprise  in which the minority and/or women-ownership
interest is real, substantial and continuing;
  (iii) be an enterprise in which the  minority  and/or  women-ownership
has  and exercises the authority to control independently the day-to-day
business decisions of the enterprise;
  (iv) be an enterprise authorized to do business in this state;
  (v) be subject to a physical site inspection to verify  the  fifty-one
percent ownership requirement;
  (vi)  be  owned  by  an  individual  or  individuals, whose ownership,
control and operation are relied upon for certification, with a personal
net worth that does not  exceed  three  million  five  hundred  thousand
dollars,  OR  SUCH OTHER AMOUNT AS THE DIRECTOR SHALL SET FORTH IN REGU-
LATIONS, as adjusted annually for inflation according  to  the  consumer
price index; and
  (vii)  be  an enterprise that is a small business pursuant to subdivi-
sion twenty of section three hundred ten of this article.
  (b) The director shall work with all municipal corporations that  have
a  municipal  minority  and  women-owned  business enterprise program to
develop standards to accept state certification to  meet  the  municipal
corporation  minority  and women-owned business enterprise certification
standards.
  (c) The director shall establish a procedure enabling the division  to
accept  federal  certification verification for minority and women-owned
business enterprise applicants, provided  said  standards  comport  with
those  required  by the state minority and women-owned business program,
in lieu of requiring the applicant to complete the  state  certification
process.  The  director  shall  promulgate  rules and regulations to set
forth criteria for the acceptance of federal certification.
  2-B. EACH BUSINESS  APPLYING  FOR  MINORITY  OR  WOMEN-OWNED  BUSINESS
ENTERPRISE  CERTIFICATION  PURSUANT TO THIS SECTION MUST AGREE TO ALLOW:
(I) THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS TAX  INFORMATION
WITH  THE DIVISION AND (II) THE DEPARTMENT OF LABOR TO SHARE ITS TAX AND
EMPLOYER INFORMATION WITH THE DIVISION.
  3. Following application for certification pursuant to  this  section,
the  director  shall  provide  the  applicant with written notice of the
status of the application, including notice of any outstanding deficien-
cies[, within thirty days].  Within [sixty] THIRTY days of submission of
a final completed application, the director shall provide the  applicant
with  written notice of a determination by the office approving or deny-
ing such certification and, in the event of a denial a statement setting
forth the reasons for such  denial.  Upon  a  determination  denying  or
revoking  certification, the business enterprise for which certification
has been so denied or revoked shall, upon written  request  made  within
thirty days from receipt of notice of such determination, be entitled to
a  hearing  before  an  independent  hearing officer designated for such
purpose by the director. In the event that a request for  a  hearing  is
not  made  within  such  thirty  day period, such determination shall be
deemed to be final.   The independent hearing officer  shall  conduct  a
hearing  and upon the conclusion of such hearing, issue a written recom-
mendation to the director to affirm, reverse  or  modify  such  determi-
nation  of  the director. Such written recommendation shall be issued to
the parties.  The director, within thirty days, by order,  must  accept,
reject  or  modify  such  recommendation  of the hearing officer and set

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forth in writing the reasons therefor. The director shall serve  a  copy
of  such  order  and  reasons  therefor  upon the business enterprise by
personal service or by certified  mail  return  receipt  requested.  The
order  of  the  director  shall be subject to review pursuant to article
seventy-eight of the civil practice law and rules.
  4. The director may, after performing  an  availability  analysis  and
upon  a finding that industry-specific factors coupled with personal net
worth or small business eligibility requirements  pursuant  to  subdivi-
sions  nineteen and twenty of section three hundred ten of this article,
respectively, have led to the significant exclusion of businesses  owned
by  minority  group members or women in that industry, grant provisional
MWBE certification status to applicants from that  designated  industry,
provided,  however,  that all other eligibility requirements pursuant to
subdivision seven or fifteen of section three hundred ten of this  arti-
cle, as applicable, are satisfied. Any industry-based determination made
under this section by the director shall be made widely available to the
public and posted on the division's website.
  5.  With  the exception of provisional MWBE certification, as provided
for in subdivision twenty-three of section three  hundred  ten  of  this
article, all MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISE certifications
shall be valid for a period of three years.
  §  7. Subdivisions 2, 3, 4, 5, 6 and 7 of section 315 of the executive
law, subdivision 2 as added by chapter 261 of  the  laws  of  1988,  and
subdivision  3  as  amended  and  subdivisions 4, 5, 6 and 7 as added by
chapter 175 of the laws of 2010, are amended to read as follows:
  2. [Each contracting agency shall provide  to  prospective  bidders  a
current copy of the directory of certified businesses, and a copy of the
regulations required pursuant to sections three hundred twelve and three
hundred  thirteen  of  this  article  at  the time bids or proposals are
solicited.
  3.] Each contracting agency shall report to the director with  respect
to activities undertaken to promote employment of minority group members
and women and promote and increase participation by certified businesses
with  respect to state contracts and subcontracts. Such reports shall be
submitted periodically,  but  not  less  frequently  than  annually,  as
required  by  the  director,  and  shall  include such information as is
necessary for the director to determine whether the  contracting  agency
and  contractor have complied with the purposes of this article, includ-
ing, without limitation, a summary of all waivers of the requirements of
subdivisions six and seven of section three  hundred  thirteen  of  this
article  allowed  by the contracting agency during the period covered by
the report, [including a description of the basis of the waiver  request
and  the  rationale for granting any such waiver] ANY INSTANCES IN WHICH
THE STATE AGENCY HAS DEEMED A CONTRACTOR TO HAVE COMMITTED  A  VIOLATION
PURSUANT  TO  SECTION  THREE HUNDRED SIXTEEN-A OF THIS ARTICLE, AND SUCH
OTHER INFORMATION AS THE DIRECTOR SHALL REQUIRE. Each agency shall  also
include  in  such  annual  report whether or not it has been required to
prepare a remedial plan, and, if so, the plan and the  extent  to  which
the agency has complied with each element of the plan.
  [4.]  3.  The  division  of  minority and women's business development
shall issue an annual report which: (a) summarizes the report  submitted
by  each  contracting agency pursuant to subdivision [three] TWO of this
section; (b) contains such  comparative  or  other  information  as  the
director  deems appropriate, including but not limited to goals compared
to actual participation of minority and women-owned business enterprises
in state contracting, to evaluate the effectiveness  of  the  activities

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undertaken  by each such contracting agency to promote increased partic-
ipation by certified minority or women-owned businesses with respect  to
state  contracts and subcontracts; (c) contains a summary of all waivers
of  the  requirements  of  subdivisions  six  and seven of section three
hundred thirteen of this article  allowed  by  each  contracting  agency
during the period covered by the report[, including a description of the
basis  of  the waiver request and the contracting agency's rationale for
granting any such waiver]; AND (d) [describes any efforts  to  create  a
database  or  other  information storage and retrieval system containing
information relevant to contracting with minority and women-owned  busi-
ness  enterprises; and (e)] contains a summary of (i) all determinations
of violations of this article by a contractor or  a  contracting  agency
made  during the period covered by the annual report pursuant to section
three hundred sixteen-a of this article and
  (ii) the penalties or sanctions, if any, assessed in  connection  with
such  determinations  and the rationale for such penalties or sanctions.
Copies of the annual report shall be provided to the  commissioner,  the
governor,  the  comptroller,  the temporary president of the senate, the
speaker of the assembly, the minority leader of the senate, the minority
leader of the assembly and shall also be made widely  available  to  the
public  via,  among other things, publication on a website maintained by
the division of minority and women's business development.
  [5.] 4. Each agency shall include in its annual report to the governor
and legislature pursuant to section one hundred sixty-four of [the exec-
utive law] THIS CHAPTER its annual goals for  contracts  with  minority-
owned  and  women-owned  business  enterprises,  the  number  of  actual
contracts issued to minority-owned and women-owned business enterprises;
and a summary of all waivers of the requirements of subdivisions six and
seven of section three hundred thirteen of this article allowed  by  the
reporting  agency  during the preceding year, including a description of
the basis of the waiver request and  the  rationale  for  granting  such
waiver.  Each agency shall also include in such annual report whether or
not it has been required to prepare a remedial plan,  and,  if  so,  the
plan  and  the extent to which the agency has complied with each element
of the plan.
  [6.] 5. Each contracting agency that substantially fails to [meet  the
goals  supported  by  the  disparity study] MAKE A GOOD FAITH EFFORT, as
defined by regulation of the director, TO ACHIEVE THE  MAXIMUM  FEASIBLE
PARTICIPATION  OF  MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES IN SUCH
AGENCY'S CONTRACTING shall be required to submit to the director a reme-
dial action plan to remedy such failure.
  [7.] 6. If it is determined by the director that any agency has failed
to act in good faith to implement the remedial action plan, pursuant  to
subdivision  [six]  FIVE  of  this section within one year, the director
shall provide written notice of such a finding, which shall be  publicly
available, and direct implementation of remedial actions to:
  (a) assure that sufficient and effective solicitation efforts to women
and minority-owned business enterprises are being made by said agency;
  (b)  divide  contract  requirements,  when economically feasible, into
quantities that will expand the participation  of  women  and  minority-
owned business enterprises;
  (c) eliminate extended experience or capitalization requirements, when
programmatically  and  economically  feasible,  that will expand partic-
ipation by women and minority-owned business enterprises;
  (d) identify specific proposed contracts as particularly attractive or
appropriate for  participation  by  women  and  minority-owned  business

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enterprises  with such identification to result from and be coupled with
the efforts of paragraphs (a), (b), and (c) of this subdivision; and
  (e)  upon  a finding by the director that an agency has failed to take
affirmative measures to implement the remedial plan and to follow any of
the remedial actions set forth by the director, and in  the  absence  of
any  objective  progress towards the agency's goals, require some or all
of the agency's procurement, for a specified period of time,  be  placed
under the direction and control of another agency or agencies.
  §  8.  Section  316-a of the executive law, as added by chapter 175 of
the laws of 2010, is amended to read as follows:
  § 316-a. Prohibitions  in  contracts;  violations.  Every  contracting
agency  shall  include  a  provision  in  its  state contracts expressly
providing that any contractor who [willfully and intentionally] fails TO
MAKE A GOOD FAITH EFFORT to comply with  the  minority  and  women-owned
participation  requirements  of  this article as set forth in such state
contract shall be liable to the contracting  agency  for  liquidated  or
other  appropriate damages and shall provide for other appropriate reme-
dies on account of such breach. A  contracting  agency  that  elects  to
proceed  against a contractor for breach of contract as provided in this
section shall be precluded from seeking enforcement pursuant to  section
three  hundred  sixteen  of  this  article;  provided  however, that the
contracting agency shall include a summary of  all  enforcement  actions
undertaken  pursuant  to  this  section  in  its annual report submitted
pursuant to [subdivision three of] section three hundred fifteen of this
article.
  § 9. Subdivision 6 of section 163 of the state finance law, as amended
by chapter 569 of the laws of 2015, is amended to read as follows:
  6. Discretionary buying thresholds. Pursuant to guidelines established
by the state procurement council: the commissioner may purchase services
and commodities in an amount not exceeding eighty-five thousand  dollars
without  a  formal  competitive  process;  state  agencies  may purchase
services and commodities in  an  amount  not  exceeding  fifty  thousand
dollars  without  a  formal  competitive process; and state agencies may
purchase commodities or services from small business concerns  or  those
certified  pursuant  to articles fifteen-A and seventeen-B of the execu-
tive law, or commodities or technology that are recycled  or  remanufac-
tured,  or  commodities that are food, including milk and milk products,
grown, produced or harvested in New York state in an amount not  exceed-
ing  [two]  FOUR  hundred  thousand dollars without a formal competitive
process.
  § 10. Subparagraph (i) of paragraph (b) of subdivision  3  of  section
2879  of  the  public  authorities law, as amended by chapter 174 of the
laws of 2010, is amended to read as follows:
  (i) for the selection of such contractors on a competitive basis,  and
provisions  relating  to  the circumstances under which the board may by
resolution  waive  competition,  including,  notwithstanding  any  other
provision  of  law  requiring  competition,  the  purchase  of  goods or
services from small business concerns or those certified as minority  or
women-owned  business enterprises, or goods or technology that are recy-
cled or remanufactured, in an amount not to exceed  [two]  FOUR  hundred
thousand dollars without a formal competitive process;
  §  11.  Paragraph  a  of  subdivision  3 of section 139-j of the state
finance law is amended by adding two new subparagraphs 10 and 11 to read
as follows:
  (10) COMPLAINTS BY MINORITY-OWNED BUSINESS ENTERPRISES OR  WOMEN-OWNED
BUSINESS  ENTERPRISES, CERTIFIED AS SUCH BY THE DIVISION OF MINORITY AND

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WOMEN'S BUSINESS DEVELOPMENT, TO THE MINORITY AND  WOMEN-OWNED  BUSINESS
ENTERPRISE  STATEWIDE  ADVOCATE  CONCERNING  THE  PROCURING GOVERNMENTAL
ENTITY'S FAILURE TO  COMPLY  WITH  THE  REQUIREMENTS  OF  SECTION  THREE
HUNDRED FIFTEEN OF THE EXECUTIVE LAW;
  (11)  COMMUNICATIONS  BETWEEN  THE  MINORITY  AND WOMEN-OWNED BUSINESS
ENTERPRISE STATEWIDE ADVOCATE AND THE PROCURING GOVERNMENTAL  ENTITY  IN
FURTHERANCE OF AN INVESTIGATION OF THE MINORITY AND WOMEN-OWNED BUSINESS
ENTERPRISE STATEWIDE ADVOCATE PURSUANT TO SECTION THREE HUNDRED TWELVE-A
OF THE EXECUTIVE LAW;
  §  12.  Subdivision  6  of  section  8 of the public buildings law, as
amended by chapter 840 of the laws  of  1980,  is  amended  to  read  as
follows:
  6.  All  contracts  for amounts in excess of five thousand dollars for
the work of construction, reconstruction, alteration, repair or improve-
ment of any state building, whether constructed  or  to  be  constructed
must  be  offered  for  public  bidding and may be awarded to the lowest
responsible and reliable bidder, as will best promote the public  inter-
est,  by  the  said  department or other agency with the approval of the
comptroller for the whole or any part of the work to be performed,  and,
in the discretion of the said department or other agency, such contracts
may be sublet; provided, however, that no such contract shall be awarded
to  a  bidder  other  than  the  lowest responsible and reliable bidder,
EXCEPT FOR CERTAIN CONTRACTS AWARDED TO MINORITY OR WOMEN-OWNED BUSINESS
ENTERPRISES AS PROVIDED HEREIN, without  the  written  approval  of  the
comptroller.  When a proposal consists of unit prices of items specified
to be performed, the lowest bid shall be deemed to be that which specif-
ically states the lowest gross sum for which the  entire  work  will  be
performed,  EXCEPT  FOR  CERTAIN CONTRACTS AWARDED TO MINORITY OR WOMEN-
OWNED BUSINESS ENTERPRISES AS PROVIDED HEREIN, including all  the  items
specified in the proposal thereof. The lowest bid shall be determined by
the  commissioner  of general services on the basis of the gross sum for
which the entire work will be performed, arrived at by a correct  compu-
tation  of  all the items specified in the proposal therefor at the unit
prices contained in the bid. PROVIDED, HOWEVER, THAT WHERE A RESPONSIBLE
AND RELIABLE BIDDER CERTIFIED AS A MINORITY-OWNED BUSINESS ENTERPRISE OR
WOMEN-OWNED BUSINESS ENTERPRISE PURSUANT TO  ARTICLE  FIFTEEN-A  OF  THE
EXECUTIVE LAW SUBMITS A BID OF ONE MILLION FOUR HUNDRED THOUSAND DOLLARS
OR LESS, AS ADJUSTED ANNUALLY FOR INFLATION BEGINNING JANUARY FIRST, TWO
THOUSAND  NINETEEN,  THE  BID  OF  THE  MINORITY OR WOMEN-OWNED BUSINESS
ENTERPRISE SHALL BE DEEMED THE LOWEST BID UNLESS IT EXCEEDS THE  BID  OF
ANY OTHER BIDDER BY MORE THAN TEN PERCENT.
  §  13. The penal law is amended by adding a new article 181 to read as
follows:

                               ARTICLE 181
            MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD

SECTION 181.00 DEFINITIONS.
        181.10 MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD IN  THE
                 THIRD DEGREE.
        181.20 MINORITY  OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD IN THE
                 SECOND DEGREE.
        181.30 MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD IN  THE
                 FIRST DEGREE.
§ 181.00 DEFINITIONS.

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  1.  "MINORITY-OWNED  BUSINESS  ENTERPRISE" MEANS A BUSINESS ENTERPRISE
CERTIFIED AS SUCH PURSUANT TO ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW.
  2.  "STATE  CONTRACT"  SHALL  HAVE  THE  SAME  MEANING  AS  IN ARTICLE
FIFTEEN-A OF THE EXECUTIVE LAW.
  3. "WOMEN-OWNED  BUSINESS  ENTERPRISE"  MEANS  A  BUSINESS  ENTERPRISE
CERTIFIED AS SUCH PURSUANT TO ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW.
§ 181.10 MINORITY  OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD IN THE THIRD
            DEGREE.
  A PERSON IS GUILTY OF  MINORITY  OR  WOMEN-OWNED  BUSINESS  ENTERPRISE
FRAUD  IN  THE THIRD DEGREE WHEN HE OR SHE KNOWINGLY PROVIDES MATERIALLY
FALSE INFORMATION OR OMITS MATERIAL INFORMATION CONCERNING  THE  USE  OR
IDENTIFICATION  OF A MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FOR THE
PURPOSE OF BEING AWARDED, OR DEMONSTRATING COMPLIANCE WITH THE  MINORITY
AND   WOMEN-OWNED   BUSINESS  PARTICIPATION  REQUIREMENTS  OF,  A  STATE
CONTRACT.
  MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD IN THE THIRD  DEGREE
IS A CLASS A MISDEMEANOR.
§ 181.20 MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD IN THE SECOND
            DEGREE.
  A  PERSON  IS  GUILTY  OF  MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE
FRAUD IN THE SECOND DEGREE WHEN HE OR SHE KNOWINGLY PROVIDES  MATERIALLY
FALSE  INFORMATION  OR  OMITS MATERIAL INFORMATION CONCERNING THE USE OR
IDENTIFICATION OF A MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FOR  THE
PURPOSE  OF BEING AWARDED, OR DEMONSTRATING COMPLIANCE WITH THE MINORITY
AND  WOMEN-OWNED  BUSINESS  PARTICIPATION  REQUIREMENTS  OF,   A   STATE
CONTRACT,  AND  THE STATE CONTRACT IS VALUED IN EXCESS OF FIFTY THOUSAND
DOLLARS.
  MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD IN THE SECOND DEGREE
IS A CLASS E FELONY.
§ 181.30 MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD IN THE  FIRST
            DEGREE.
  A  PERSON  IS  GUILTY  OF  MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE
FRAUD IN THE FIRST DEGREE WHEN HE OR SHE KNOWINGLY  PROVIDES  MATERIALLY
FALSE  INFORMATION  OR  OMITS MATERIAL INFORMATION CONCERNING THE USE OR
IDENTIFICATION OF A MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FOR  THE
PURPOSE  OF BEING AWARDED, OR DEMONSTRATING COMPLIANCE WITH THE MINORITY
AND  WOMEN-OWNED  BUSINESS  PARTICIPATION  REQUIREMENTS  OF,   A   STATE
CONTRACT,  AND  THE  STATE  CONTRACT  IS VALUED IN EXCESS OF ONE MILLION
DOLLARS.
  MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE FRAUD IN THE FIRST  DEGREE
IS A CLASS D FELONY.
  § 14. The opening paragraph of subdivision (h) of section 121 of chap-
ter  261  of  the laws of 1988, amending the state finance law and other
laws relating to the  New  York  state  infrastructure  trust  fund,  as
amended  by  section  1  of  part  CCC of chapter 59 of laws of 2017, is
amended to read as follows:
  The provisions of sections sixty-two through  sixty-six  of  this  act
shall expire [April fifteenth, two thousand eighteen, provided, however,
that  if  the  statewide  disparity study regarding the participation of
minority  and  women-owned  business  enterprises  in  state   contracts
required  pursuant  to subdivision one of section three hundred twelve-a
of the executive law is completed and delivered to the governor and  the
legislature  on  or  before June thirtieth, two thousand seventeen, then
the provisions of sections sixty-two through sixty-six of this act shall
expire] AND BE DEEMED REPEALED on December  thirty-first,  two  thousand
[eighteen] TWENTY-THREE, except that:

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  §  15.  The  executive  law  is  amended by adding a new article 28 as
follows:

                               ARTICLE 28
                       WORKFORCE DIVERSITY PROGRAM

SECTION 821. DEFINITIONS.
        822. WORKFORCE PARTICIPATION GOALS.
        823. REPORTING.
        824. ENFORCEMENT.
        825. POWERS AND RESPONSIBILITIES OF THE DIVISION.
        826. SEVERABILITY.
  § 821. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  1.  "CONTRACTOR"  SHALL  MEAN  AN  INDIVIDUAL,  A BUSINESS ENTERPRISE,
INCLUDING A SOLE PROPRIETORSHIP, A PARTNERSHIP, A  CORPORATION,  A  NOT-
FOR-PROFIT  CORPORATION,  OR  ANY  OTHER PARTY TO A STATE CONTRACT, OR A
BIDDER IN CONJUNCTION WITH THE AWARD OF A STATE CONTRACT OR  A  PROPOSED
PARTY TO A STATE CONTRACT.
  2. "DEPARTMENT" SHALL MEAN THE DEPARTMENT OF LABOR.
  3.  "DIRECTOR" SHALL MEAN THE DIRECTOR OF THE DIVISION OF MINORITY AND
WOMEN'S BUSINESS DEVELOPMENT.
  4. "DISPARITY STUDY" SHALL MEAN THE MOST RECENT STUDY  OF  DISPARITIES
BETWEEN  THE  UTILIZATION  OF  MINORITY  GROUP  MEMBERS AND WOMEN IN THE
PERFORMANCE OF STATE CONTRACTS AND THE AVAILABILITY  OF  MINORITY  GROUP
MEMBERS AND WOMEN TO PERFORM SUCH WORK BY THE DIRECTOR PURSUANT TO ARTI-
CLE FIFTEEN-A OF THIS CHAPTER.
  5.  "DIVISION"  SHALL  MEAN  THE  DEPARTMENT OF ECONOMIC DEVELOPMENT'S
DIVISION OF MINORITY AND WOMEN'S BUSINESS DEVELOPMENT.
  6. "LIST OF NON-COMPLIANT CONTRACTORS" SHALL MEAN A LIST  OF  CONTRAC-
TORS AND SUBCONTRACTORS, MAINTAINED BY THE DIVISION AND PUBLISHED ON THE
WEBSITE  OF THE DIVISION, THAT ARE INELIGIBLE TO PARTICIPATE AS CONTRAC-
TORS OR SUBCONTRACTORS IN THE PERFORMANCE OF STATE CONTRACTS FOR A  TERM
DETERMINED BY THE DIRECTOR.
  7.  "MINORITY  GROUP  MEMBER"  SHALL  MEAN  A UNITED STATES CITIZEN OR
PERMANENT RESIDENT ALIEN WHO IS AND CAN DEMONSTRATE MEMBERSHIP IN ONE OF
THE FOLLOWING GROUPS:
  (A) BLACK PERSONS HAVING ORIGINS IN ANY OF THE  BLACK  AFRICAN  RACIAL
GROUPS;
  (B)  HISPANIC  PERSONS  OF  MEXICAN,  PUERTO  RICAN, DOMINICAN, CUBAN,
CENTRAL OR SOUTH AMERICAN OF EITHER INDIAN OR HISPANIC  ORIGIN,  REGARD-
LESS OF RACE;
  (C) NATIVE AMERICAN OR ALASKAN NATIVE PERSONS HAVING ORIGINS IN ANY OF
THE ORIGINAL PEOPLES OF NORTH AMERICA;
  (D)  ASIAN  AND  PACIFIC ISLANDER PERSONS HAVING ORIGINS IN ANY OF THE
FAR EAST COUNTRIES, SOUTH EAST ASIA,  THE  INDIAN  SUBCONTINENT  OR  THE
PACIFIC ISLANDS.
  8. "NON-COMPLIANT CONTRACTOR" SHALL MEAN A CONTRACTOR OR SUBCONTRACTOR
THAT  HAS  FAILED  TO  MAKE  A  GOOD  FAITH EFFORT TO MEET THE WORKFORCE
PARTICIPATION GOAL ESTABLISHED BY A STATE AGENCY ON  A  STATE  CONTRACT,
AND  HAS  BEEN  LISTED  BY  THE  DIVISION  ON  ITS LIST OF NON-COMPLIANT
CONTRACTORS.
  9. "STATE AGENCY" SHALL MEAN (A)(I) ANY STATE DEPARTMENT, OR (II)  ANY
DIVISION,  BOARD, COMMISSION OR BUREAU OF ANY STATE DEPARTMENT, OR (III)
THE STATE UNIVERSITY OF NEW YORK AND THE CITY UNIVERSITY  OF  NEW  YORK,
INCLUDING  ALL THEIR CONSTITUENT UNITS EXCEPT COMMUNITY COLLEGES AND THE

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INDEPENDENT INSTITUTIONS OPERATING STATUTORY  OR  CONTRACT  COLLEGES  ON
BEHALF  OF  THE  STATE, OR (IV) A BOARD, A MAJORITY OF WHOSE MEMBERS ARE
APPOINTED BY THE GOVERNOR OR WHO SERVE BY VIRTUE OF BEING STATE OFFICERS
OR  EMPLOYEES AS DEFINED IN SUBPARAGRAPH (I), (II) OR (III) OF PARAGRAPH
(I) OF SUBDIVISION ONE OF SECTION SEVENTY-THREE OF THE  PUBLIC  OFFICERS
LAW.
  (B)  A "STATE AUTHORITY," AS DEFINED IN SUBDIVISION ONE OF SECTION TWO
OF THE PUBLIC AUTHORITIES LAW, AND THE FOLLOWING:
ALBANY COUNTY AIRPORT AUTHORITY;
ALBANY PORT DISTRICT COMMISSION;
ALFRED, ALMOND, HORNELLSVILLE SEWER AUTHORITY;
BATTERY PARK CITY AUTHORITY;
CAYUGA COUNTY WATER AND SEWER AUTHORITY;
(NELSON A. ROCKEFELLER) EMPIRE STATE PLAZA PERFORMING ARTS CENTER
CORPORATION;
INDUSTRIAL EXHIBIT AUTHORITY;
LIVINGSTON COUNTY WATER AND SEWER AUTHORITY;
LONG ISLAND POWER AUTHORITY;
LONG ISLAND RAIL ROAD;
LONG ISLAND MARKET AUTHORITY;
MANHATTAN AND BRONX SURFACE TRANSIT OPERATING AUTHORITY;
METRO-NORTH COMMUTER RAILROAD;
METROPOLITAN SUBURBAN BUS AUTHORITY;
METROPOLITAN TRANSPORTATION AUTHORITY;
NATURAL HERITAGE TRUST;
NEW YORK CITY TRANSIT AUTHORITY;
NEW YORK CONVENTION CENTER OPERATING CORPORATION;
NEW YORK STATE BRIDGE AUTHORITY;
NEW YORK STATE OLYMPIC REGIONAL DEVELOPMENT AUTHORITY;
NEW YORK STATE THRUWAY AUTHORITY;
NIAGARA FALLS PUBLIC WATER AUTHORITY;
NIAGARA FALLS WATER BOARD;
PORT OF OSWEGO AUTHORITY;
POWER AUTHORITY OF THE STATE OF NEW YORK;
ROOSEVELT ISLAND OPERATING CORPORATION;
SCHENECTADY METROPLEX DEVELOPMENT AUTHORITY;
STATE INSURANCE FUND;
STATEN ISLAND RAPID TRANSIT OPERATING AUTHORITY;
STATE UNIVERSITY CONSTRUCTION FUND;
SYRACUSE REGIONAL AIRPORT AUTHORITY;
TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY;
UPPER MOHAWK VALLEY REGIONAL WATER BOARD;
UPPER MOHAWK VALLEY REGIONAL WATER FINANCE AUTHORITY;
UPPER MOHAWK VALLEY MEMORIAL AUDITORIUM AUTHORITY;
URBAN DEVELOPMENT CORPORATION AND ITS SUBSIDIARY CORPORATIONS.
(C) THE FOLLOWING ONLY TO THE EXTENT OF STATE CONTRACTS ENTERED INTO FOR
ITS OWN ACCOUNT OR FOR THE BENEFIT OF A STATE AGENCY AS DEFINED IN PARA-
GRAPH (A) OR (B) OF THIS SUBDIVISION:
DORMITORY AUTHORITY OF THE STATE OF NEW YORK;
FACILITIES DEVELOPMENT CORPORATION;
NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY;
NEW YORK STATE SCIENCE AND TECHNOLOGY FOUNDATION.
  10. "STATE CONTRACT" SHALL MEAN: (A) A WRITTEN AGREEMENT  OR  PURCHASE
ORDER  INSTRUMENT,  PROVIDING FOR A TOTAL EXPENDITURE IN EXCESS OF FIFTY
THOUSAND DOLLARS, WHEREBY A STATE AGENCY IS COMMITTED TO EXPEND OR  DOES
EXPEND  OR  GRANT  FUNDS IN RETURN FOR LABOR, SERVICES INCLUDING BUT NOT

S. 7508--A                         62                         A. 9508--A

LIMITED TO LEGAL, FINANCIAL AND OTHER PROFESSIONAL  SERVICES,  SUPPLIES,
EQUIPMENT,  MATERIALS  OR  ANY  COMBINATION  OF  THE  FOREGOING,  TO  BE
PERFORMED ON BEHALF OF, FOR, OR RENDERED OR FURNISHED TO THE STATE AGEN-
CY;  (B)  A  WRITTEN AGREEMENT IN EXCESS OF TWO HUNDRED THOUSAND DOLLARS
WHEREBY A STATE AGENCY IS COMMITTED TO EXPEND OR DOES  EXPEND  OR  GRANT
FUNDS  FOR THE ACQUISITION, CONSTRUCTION, DEMOLITION, REPLACEMENT, MAJOR
REPAIR OR RENOVATION OF REAL PROPERTY AND IMPROVEMENTS THEREON; AND  (C)
A  WRITTEN  AGREEMENT  IN EXCESS OF TWO HUNDRED THOUSAND DOLLARS WHEREBY
THE OWNER OF A STATE ASSISTED HOUSING PROJECT IS COMMITTED TO EXPEND  OR
DOES   EXPEND  FUNDS  FOR  THE  ACQUISITION,  CONSTRUCTION,  DEMOLITION,
REPLACEMENT, MAJOR REPAIR OR RENOVATION OF REAL  PROPERTY  AND  IMPROVE-
MENTS THEREON FOR SUCH PROJECT.
  11.  "SUBCONTRACTOR"  SHALL MEAN ANY INDIVIDUAL OR BUSINESS ENTERPRISE
THAT PROVIDES GOODS OR SERVICES TO ANY INDIVIDUAL OR BUSINESS FOR USE IN
THE PERFORMANCE OF A STATE  CONTRACT,  WHETHER  OR  NOT  SUCH  GOODS  OR
SERVICES ARE PROVIDED TO A PARTY TO A STATE CONTRACT.
  §  822.  WORKFORCE PARTICIPATION GOALS.  1. THE DIRECTOR, IN CONSULTA-
TION WITH THE DEPARTMENT,  SHALL  DEVELOP  ASPIRATIONAL  GOALS  FOR  THE
UTILIZATION  OF  MINORITY GROUP MEMBERS AND WOMEN IN CONSTRUCTION TRADE,
PROFESSION, AND OCCUPATION.
  (A) ASPIRATIONAL GOALS FOR THE UTILIZATION OF MINORITY  GROUP  MEMBERS
AND  WOMEN  MUST  SET FORTH THE EXPECTED PARTICIPATION OF MINORITY GROUP
MEMBERS AND WOMEN IN EACH CONSTRUCTION TRADE,  PROFESSION,  AND  OCCUPA-
TION,  AND SHALL BE EXPRESSED AS A PERCENTAGE OF THE TOTAL HOURS OF WORK
TO BE PERFORMED BY EACH TRADE, PROFESSION, AND OCCUPATION BASED  ON  THE
AVAILABILITY  OF  MINORITY  GROUP  MEMBERS  AND WOMEN WITHIN EACH TRADE,
PROFESSION, AND OCCUPATION.
  (I) THE ASPIRATIONAL GOALS SHALL SET FORTH SEPARATE LEVELS OF EXPECTED
PARTICIPATION BY MEN AND WOMEN FOR EACH MINORITY GROUP, AND  FOR  CAUCA-
SIAN WOMEN, IN EACH CONSTRUCTION TRADE, PROFESSION, AND OCCUPATION.
  (II)  ASPIRATIONAL  GOALS  FOR  THE EXPECTED PARTICIPATION OF MINORITY
GROUP MEMBERS AND WOMEN SHALL BE ESTABLISHED  FOR  EACH  COUNTY  OF  THE
STATE.  THE  DIRECTOR  MAY ESTABLISH ASPIRATIONAL GOALS FOR THE EXPECTED
PARTICIPATION OF MINORITY GROUP MEMBERS  AND  WOMEN  FOR  MUNICIPALITIES
WHERE THE DIRECTOR DEEMS FEASIBLE AND APPROPRIATE.
  (III)  THE  DIRECTOR  SHALL,  IN  ESTABLISHING THE ASPIRATIONAL GOALS,
CONSIDER THE FINDINGS OF THE MOST RECENT DISPARITY STUDY AND  ANY  RELE-
VANT DATA PUBLISHED BY THE UNITED STATES CENSUS BUREAU.
  (B)  THE  DIRECTOR  SHALL  UPDATE THE ASPIRATIONAL GOALS ON A PERIODIC
BASIS, NO LESS THAN ANNUALLY.
  2. STATE AGENCIES SHALL, FOR EACH INVITATION  FOR  BIDS,  REQUEST  FOR
PROPOSALS,  OR  OTHER  SOLICITATION  THAT  WILL RESULT IN THE AWARD OF A
STATE CONTRACT, SET FORTH THE EXPECTED DEGREE OF WORKFORCE PARTICIPATION
BY MINORITY GROUP MEMBERS AND WOMEN.
  (A) EACH WORKFORCE PARTICIPATION GOAL ESTABLISHED BY  A  STATE  AGENCY
SHALL  SET  FORTH  THE EXPECTED LEVEL OF PARTICIPATION BY MINORITY GROUP
MEMBERS AND WOMEN IN THE PERFORMANCE  OF  EACH  TRADE,  PROFESSION,  AND
OCCUPATION REQUIRED IN THE PERFORMANCE OF THE CONTRACT.
  (B)  GOALS  FOR  THE PARTICIPATION OF MINORITY GROUP MEMBERS AND WOMEN
SHALL SET FORTH SEPARATE GOALS FOR EACH OF THE FOLLOWING GROUPS IN  EACH
TRADE, PROFESSION, AND OCCUPATION:
  (I) BLACK MEN;
  (II) BLACK WOMEN;
  (III) HISPANIC MEN;
  (IV) HISPANIC WOMEN;
  (V) NATIVE AMERICAN MEN;

S. 7508--A                         63                         A. 9508--A

  (VI) NATIVE AMERICAN WOMEN;
  (VII) ASIAN MEN;
  (VIII) ASIAN WOMEN;
  (IX) CAUCASIAN WOMEN.
  (C)  IN  ESTABLISHING  WORKFORCE  PARTICIPATION  GOALS, STATE AGENCIES
SHALL CONSIDER FACTORS INCLUDING, BUT NOT LIMITED TO:
  (I) THE FINDINGS OF THE DISPARITY STUDY;
  (II) ANY RELEVANT DATA PUBLISHED BY THE UNITED STATES  CENSUS  BUREAU;
AND
  (III)  IF  APPLICABLE,  ANY ASPIRATIONAL GOAL ESTABLISHED BY THE DIVI-
SION.
  (D) IN ANY CASE WHERE A STATE AGENCY ESTABLISHES A  WORKFORCE  PARTIC-
IPATION  GOAL ON AN INVITATION FOR BIDS, REQUEST FOR PROPOSALS, OR OTHER
SOLICITATION THAT WILL RESULT IN THE  AWARD  OF  A  STATE  CONTRACT  FOR
CONSTRUCTION  THAT  DEVIATES FROM THE ASPIRATIONAL GOAL FOR CONSTRUCTION
WORK IN THE COUNTY OR MUNICIPALITY IN WHICH THE WORK WILL BE  PERFORMED,
THE  STATE  AGENCY  SHALL DOCUMENT NUMERICAL EVIDENCE DEMONSTRATING THAT
THE APPLICATION OF THE ASPIRATIONAL GOAL WOULD NOT BE PRACTICAL,  FEASI-
BLE, OR APPROPRIATE.
  3.  EVERY CONTRACTOR RESPONDING TO AN INVITATION FOR BIDS, REQUEST FOR
PROPOSALS, OR OTHER SOLICITATION THAT WILL RESULT  IN  THE  AWARD  OF  A
STATE CONTRACT SUBJECT TO WORKFORCE PARTICIPATION GOALS PURSUANT TO THIS
SECTION  SHALL  AGREE  TO MAKE A GOOD FAITH EFFORT TO ACHIEVE SUCH WORK-
FORCE PARTICIPATION GOAL OR REQUEST A WAIVER OF SUCH GOAL.
  (A) A CONTRACTOR THAT CERTIFIES THAT IT WILL MAKE A GOOD FAITH  EFFORT
TO  ACHIEVE  A  WORKFORCE  PARTICIPATION  GOAL  SHALL  PROVIDE  WITH ITS
RESPONSE TO THE APPLICABLE INVITATION FOR BIDS, REQUEST  FOR  PROPOSALS,
OR OTHER SOLICITATION:
  (I) A CERTIFICATION STATING THAT THE CONTRACTOR WILL MAKE A GOOD FAITH
EFFORT  TO  ACHIEVE THE APPLICABLE WORKFORCE PARTICIPATION GOAL AND WILL
CONTRACTUALLY REQUIRE ANY SUBCONTRACTORS TO THE  CONTRACTOR  TO  MAKE  A
GOOD FAITH EFFORT TO ACHIEVE THE APPLICABLE WORKFORCE PARTICIPATION GOAL
IN  ANY  SUBCONTRACTED  WORK, WHICH CERTIFICATION SHALL ACKNOWLEDGE THAT
FAILURE BY THE CONTRACTOR OR ANY OF ITS SUBCONTRACTORS TO  MAKE  A  GOOD
FAITH  EFFORT TO ACHIEVE THE APPLICABLE WORKFORCE PARTICIPATION GOAL MAY
RESULT IN A DETERMINATION BY  THE  CONTRACTING  STATE  AGENCY  THAT  THE
CONTRACTOR OR ITS SUBCONTRACTOR IS A NON-COMPLIANT CONTRACTOR;
  (II)  THE LEVEL OF ANTICIPATED PARTICIPATION BY MINORITY GROUP MEMBERS
AND WOMEN AS EMPLOYEES TO THE CONTRACTOR, OR, IF THE  STATE  AGENCY  HAS
SPECIFICALLY  INDICATED  THAT SUCH DOCUMENTATION IS NOT REQUIRED AS PART
OF THE RESPONSE TO THE INVITATION FOR BIDS, REQUEST  FOR  PROPOSALS,  OR
OTHER SOLICITATION, A DATE CERTAIN FOR THE SUBMISSION OF SUCH DOCUMENTA-
TION AFTER THE AWARD OF THE STATE CONTRACT;
  (III)  A LIST OF ALL SUBCONTRACTORS ANTICIPATED TO PERFORM WORK ON THE
STATE CONTRACT AND THE LEVEL OF ANTICIPATED  PARTICIPATION  BY  MINORITY
GROUP  MEMBERS  AND WOMEN AS EMPLOYEES TO EACH SUBCONTRACTOR, OR, IF THE
STATE AGENCY HAS SPECIFICALLY INDICATED THAT SUCH DOCUMENTATION  IS  NOT
REQUIRED AS PART OF THE RESPONSE TO THE INVITATION FOR BIDS, REQUEST FOR
PROPOSALS,  OR  OTHER SOLICITATION, A DATE CERTAIN FOR THE SUBMISSION OF
SUCH DOCUMENTATION AFTER THE AWARD OF THE STATE CONTRACT; AND
  (IV) SUCH OTHER INFORMATION AS  THE  CONTRACTING  STATE  AGENCY  SHALL
REQUIRE.
  (B)  A  CONTRACTOR THAT REQUESTS A WAIVER OF A WORKFORCE PARTICIPATION
GOAL SHALL PROVIDE WITH ITS RESPONSE TO THE  APPLICABLE  INVITATION  FOR
BIDS, REQUEST FOR PROPOSALS, OR OTHER SOLICITATION:

S. 7508--A                         64                         A. 9508--A

  (I)  NUMERICAL EVIDENCE SETTING FORTH WHY THE ACHIEVEMENT OF THE WORK-
FORCE PARTICIPATION GOAL IS NOT PRACTICAL, FEASIBLE, OR  APPROPRIATE  IN
LIGHT  OF  THE  TRADES, PROFESSIONS, AND OCCUPATIONS REQUIRED TO PERFORM
THE WORK OF THE STATE CONTRACT;
  (II)  DOCUMENTATION  OF  THE  CONTRACTOR'S EFFORTS, AND ANY EFFORTS BY
SUBCONTRACTORS TO THE CONTRACTOR, TO PROMOTE THE INCLUSION  OF  MINORITY
GROUP MEMBERS AND WOMEN IN TRADES, PROFESSIONS, AND OCCUPATIONS REQUIRED
IN THE PERFORMANCE OF THE STATE CONTRACT;
  (III)  THE  MAXIMUM  FEASIBLE LEVEL OF PARTICIPATION BY MINORITY GROUP
MEMBERS AND WOMEN IN EACH OF THE TRADES,  PROFESSIONS,  AND  OCCUPATIONS
REQUIRED IN THE PERFORMANCE OF THE WORK OF THE STATE CONTRACT;
  (IV)  THE LEVEL OF ANTICIPATED PARTICIPATION BY MINORITY GROUP MEMBERS
AND WOMEN AS EMPLOYEES TO THE CONTRACTOR;
  (V) A LIST OF ALL SUBCONTRACTORS ANTICIPATED TO PERFORM  WORK  ON  THE
STATE  CONTRACT  AND  THE LEVEL OF ANTICIPATED PARTICIPATION BY MINORITY
GROUP MEMBERS AND WOMEN AS EMPLOYEES TO EACH SUBCONTRACTOR; AND
  (VI) ANY OTHER RELEVANT INFORMATION EVIDENCING THAT  THE  CONTRACTOR'S
ACHIEVEMENT  OF THE WORKFORCE PARTICIPATION GOAL WOULD NOT BE PRACTICAL,
FEASIBLE, OR APPROPRIATE.
  4. A STATE AGENCY SHALL NOT AWARD A STATE  CONTRACT  TO  A  CONTRACTOR
UNLESS  THE  CONTRACTOR HAS (I) CERTIFIED THAT IT WILL MAKE A GOOD FAITH
EFFORT TO  ACHIEVE  THE  APPLICABLE  WORKFORCE  PARTICIPATION  GOAL  AND
PROVIDED  DOCUMENTATION OF THE WORKFORCE ANTICIPATED TO PERFORM THE WORK
OF THE STATE CONTRACT OR (II) SUBMITTED A WAIVER REQUEST WHICH THE STATE
AGENCY DEEMS TO REFLECT THE MAXIMUM FEASIBLE PARTICIPATION  OF  MINORITY
GROUP  MEMBERS AND WOMEN IN EACH OF THE TRADES, PROFESSIONS, AND OCCUPA-
TIONS REQUIRED IN PERFORMANCE OF THE WORK OF THE STATE CONTRACT.
  (A) IN THE EVENT THAT A CONTRACTOR SUBMITS A CERTIFICATION  OR  WAIVER
REQUEST  THAT  IS  ACCEPTED  BY THE STATE AGENCY, THE STATE AGENCY SHALL
ESTABLISH IN THE STATE CONTRACT THE EXPECTED LEVEL OF  PARTICIPATION  BY
MINORITY GROUP MEMBERS AND WOMEN IN EACH OF THE TRADES, PROFESSIONS, AND
OCCUPATIONS  REQUIRED  IN PERFORMANCE OF THE WORK OF THE STATE CONTRACT,
REQUIRE THAT THE CONTRACTOR MAKE GOOD  FAITH  EFFORTS  TO  ACHIEVE  SUCH
WORKFORCE  PARTICIPATION  GOALS, REQUIRE THAT THE CONTRACTOR REQUIRE ANY
SUBCONTRACTORS TO MAKE A GOOD FAITH EFFORT  TO  ACHIEVE  THE  APPLICABLE
WORKFORCE  PARTICIPATION  GOAL  IN  ANY SUBCONTRACTED WORK, AND INDICATE
THAT THE FAILURE OF THE CONTRACTOR OR ANY OF ITS SUBCONTRACTORS TO  MAKE
A  GOOD  FAITH  EFFORT  TO  ACHIEVE THE WORKFORCE PARTICIPATION GOAL MAY
RESULT IN THE CONTRACTOR OR SUBCONTRACTOR BEING DEEMED  A  NON-COMPLIANT
CONTRACTOR.
  (B)  IN  THE  EVENT THAT A CONTRACTOR FAILS TO SUBMIT A CERTIFICATION,
WAIVER REQUEST, OR ANY OTHER INFORMATION REQUIRED BY THE  STATE  AGENCY,
OR  THE  STATE AGENCY DETERMINES THAT A CONTRACTOR'S WAIVER REQUEST DOES
NOT DEMONSTRATE THAT THE  APPLICABLE  WORKFORCE  PARTICIPATION  GOAL  IS
IMPRACTICAL, UNFEASIBLE, OR INAPPROPRIATE, THE STATE AGENCY SHALL NOTIFY
THE  CONTRACTOR  OF THE DEFICIENCY IN WRITING AND PROVIDE THE CONTRACTOR
FIVE BUSINESS DAYS TO REMEDY THE  NOTICED  DEFICIENCY.  A  STATE  AGENCY
SHALL  REJECT  ANY  BID OR PROPOSAL OF A CONTRACTOR THAT FAILS TO TIMELY
RESPOND TO A NOTICE OF DEFICIENCY OR TO PROVIDE DOCUMENTATION  REMEDYING
THE DEFICIENCY TO THE SATISFACTION OF THE STATE AGENCY.
  (I)  WHERE  FAILURE TO REMEDY ANY NOTIFIED DEFICIENCY IN THE WORKFORCE
UTILIZATION PLAN IS A GROUND FOR DISQUALIFICATION, THAT  ISSUE  AND  ALL
OTHER  GROUNDS  FOR  DISQUALIFICATION  SHALL BE STATED IN WRITING BY THE
CONTRACTING STATE AGENCY. THE CONTRACTOR SHALL BE ENTITLED TO AN  ADMIN-
ISTRATIVE  HEARING,  ON  A  RECORD,  INVOLVING ALL GROUNDS STATED BY THE
CONTRACTING STATE AGENCY IN ITS NOTICE OF THE CONTRACTOR'S DISQUALIFICA-

S. 7508--A                         65                         A. 9508--A

TION. SUCH HEARING SHALL BE CONDUCTED BY THE  APPROPRIATE  AUTHORITY  OF
THE  CONTRACTING AGENCY TO REVIEW THE DETERMINATION OF DISQUALIFICATION.
A FINAL ADMINISTRATIVE DETERMINATION MADE FOLLOWING SUCH  HEARING  SHALL
BE  REVIEWABLE  IN A PROCEEDING COMMENCED UNDER ARTICLE SEVENTY-EIGHT OF
THE CIVIL PRACTICE LAW AND  RULES,  PROVIDED  THAT  SUCH  PROCEEDING  IS
COMMENCED  WITHIN  THIRTY  DAYS  OF  THE  NOTICE GIVEN BY CERTIFIED MAIL
RETURN RECEIPT REQUESTED RENDERING SUCH  FINAL  ADMINISTRATIVE  DETERMI-
NATION.  SUCH PROCEEDING SHALL BE COMMENCED IN THE SUPREME COURT, APPEL-
LATE DIVISION, THIRD DEPARTMENT AND SUCH PROCEEDING SHALL  BE  PREFERRED
OVER  ALL  OTHER CIVIL CAUSES EXCEPT ELECTION CAUSES, AND SHALL BE HEARD
AND DETERMINED IN PREFERENCE TO ALL OTHER CIVIL BUSINESS PENDING  THERE-
IN,  EXCEPT  ELECTION MATTERS, IRRESPECTIVE OF POSITION ON THE CALENDAR.
APPEALS TAKEN TO THE COURT OF APPEALS OF THE STATE OF NEW YORK SHALL  BE
SUBJECT TO THE SAME PREFERENCE.
  §  823.  REPORTING.    1. STATE CONTRACTS SHALL REQUIRE CONTRACTORS TO
SUBMIT, AND TO REQUIRE ANY SUBCONTRACTORS TO SUBMIT, TO THE  CONTRACTING
STATE  AGENCY  REPORTS  DOCUMENTING THE HOURS WORKED BY EMPLOYEES OF THE
CONTRACTOR AND ANY SUBCONTRACTORS IN THE PERFORMANCE OF THE WORK OF  THE
STATE  CONTRACT. SUCH REPORTS SHALL BE SUBMITTED NO LESS FREQUENTLY THAN
MONTHLY FOR STATE CONTRACTS FOR CONSTRUCTION AND QUARTERLY FOR ALL OTHER
STATE CONTRACTS.  SUCH  REPORTS  SHALL  IDENTIFY  THE  RACE,  ETHNICITY,
GENDER, AND TRADE, PROFESSION, OR OCCUPATION OF EACH EMPLOYEE PERFORMING
WORK ON A STATE CONTRACT.
  2.  STATE  AGENCIES  SHALL SUBMIT PERIODIC REPORTS TO THE DIRECTOR, OR
THE DESIGNEE OF THE DIRECTOR, CONCERNING THE PARTICIPATION  OF  MINORITY
GROUP MEMBERS AND WOMEN IN STATE CONTRACTS LET BY SUCH AGENCIES AND SUCH
STATE  AGENCIES'  COMPLIANCE  WITH  THIS  ARTICLE. SUCH REPORTS SHALL BE
SUBMITTED AT SUCH TIME, AND INCLUDE SUCH INFORMATION,  AS  THE  DIRECTOR
SHALL  REQUIRE IN REGULATIONS. STATE AGENCIES SHALL MAKE AVAILABLE THEIR
FACILITIES, BOOKS, AND RECORDS FOR INSPECTION, UPON  REASONABLE  NOTICE,
BY THE DIRECTOR OR THE DIRECTOR'S DESIGNEE.
  3.  THE DEPARTMENT SHALL PROVIDE SUCH ASSISTANCE AS THE DIRECTOR SHALL
REQUIRE IN CARRYING OUT THE REQUIREMENTS OF THIS SECTION.
  § 824. ENFORCEMENT.  1. WHERE IT APPEARS  THAT  A  CONTRACTOR  CANNOT,
AFTER  A  GOOD  FAITH EFFORT, MEET THE WORKFORCE PARTICIPATION GOALS SET
FORTH IN A PARTICULAR STATE CONTRACT, A CONTRACTOR MAY  FILE  A  WRITTEN
APPLICATION  WITH  THE  CONTRACTING STATE AGENCY REQUESTING A PARTIAL OR
TOTAL WAIVER OF SUCH REQUIREMENTS. SUCH  REQUEST  SHALL  SET  FORTH  THE
REASONS  FOR  SUCH  CONTRACTOR'S INABILITY TO MEET THE WORKFORCE PARTIC-
IPATION GOAL, SPECIFICALLY DESCRIBE THE REASONS FOR ANY DEVIATIONS  FROM
THE  ANTICIPATED  WORKFORCE  PARTICIPATION SET FORTH IN THE CONTRACTOR'S
BID OR PROPOSAL LEADING TO THE AWARD OF THE STATE CONTRACT, AND DESCRIBE
THE EFFORTS BY THE CONTRACTOR AND  ANY  SUBCONTRACTORS  TO  ACHIEVE  THE
MAXIMUM  FEASIBLE  PARTICIPATION  OF MINORITY GROUP MEMBERS AND WOMEN IN
THE PERFORMANCE OF THE WORK OF THE STATE CONTRACT.  WHERE  THE  CONTRAC-
TOR'S  INABILITY  TO ACHIEVE THE WORKFORCE PARTICIPATION GOAL ON A STATE
CONTRACT IS ATTRIBUTABLE TO THE FAILURE OF ONE OR MORE SUBCONTRACTORS TO
MAKE GOOD FAITH EFFORTS TO ACHIEVE THE MAXIMUM FEASIBLE PARTICIPATION OF
MINORITY GROUP MEMBERS AND WOMEN IN THE PERFORMANCE OF THE WORK  OF  THE
STATE  CONTRACT,  THE  CONTRACTOR  SHALL  IDENTIFY SUCH SUBCONTRACTOR OR
SUBCONTRACTORS TO THE CONTRACTING STATE AGENCY.
  2. A STATE AGENCY SHALL GRANT A REQUEST  FOR  A  WAIVER  OF  WORKFORCE
PARTICIPATION GOALS ON A STATE CONTRACT WHERE:
  (A)  THE  CONTRACTOR  DEMONSTRATES THAT THE CONTRACTOR AND ITS SUBCON-
TRACTORS MADE GOOD FAITH EFFORTS TO ACHIEVE THE WORKFORCE  PARTICIPATION
GOAL ON THE STATE CONTRACT, AND THAT INSUFFICIENT MINORITY GROUP MEMBERS

S. 7508--A                         66                         A. 9508--A

OR  WOMEN  WERE  AVAILABLE  IN  THE TRADES, PROFESSIONS, AND OCCUPATIONS
REQUIRED TO PERFORM THE WORK OF THE STATE CONTRACT; OR,
  (B)  THE  CONTRACTOR CONTRACTUALLY REQUIRED EACH OF ITS SUBCONTRACTORS
TO MAKE A GOOD FAITH EFFORT TO  ACHIEVE  THE  MAXIMUM  FEASIBLE  PARTIC-
IPATION  OF  MINORITY  GROUP MEMBERS AND WOMEN IN THE PERFORMANCE OF THE
SUBCONTRACTED WORK, PERIODICALLY MONITORED SUCH SUBCONTRACTORS'  DEPLOY-
MENT  OF  MINORITY  GROUP  MEMBERS  AND  WOMEN IN THE PERFORMANCE OF THE
SUBCONTRACTED WORK, PROVIDED NOTICE TO SUCH SUBCONTRACTORS OF ANY  DEFI-
CIENCIES  IN THEIR DEPLOYMENT OF MINORITY GROUP MEMBERS AND WOMEN IN THE
PERFORMANCE OF SUCH SUBCONTRACTED WORK, AND COULD NOT ACHIEVE THE  WORK-
FORCE PARTICIPATION GOAL FOR ONE OR MORE TRADES, PROFESSIONS, OR OCCUPA-
TIONS WITHOUT THE GOOD FAITH EFFORTS OF SUCH SUBCONTRACTORS.
  3.  WHERE A STATE AGENCY DENIES A CONTRACTOR'S REQUEST FOR A WAIVER OF
WORKFORCE PARTICIPATION GOALS PURSUANT TO THIS SECTION, THE STATE AGENCY
SHALL RECOMMEND TO THE DIRECTOR AND THE DEPARTMENT THAT  THE  CONTRACTOR
BE DEEMED A NON-COMPLIANT CONTRACTOR.
  4.  WHERE  A  STATE  AGENCY GRANTS A REQUEST FOR A WAIVER OF WORKFORCE
PARTICIPATION GOALS PURSUANT TO  THIS  SECTION  BASED  ON  ONE  OR  MORE
SUBCONTRACTORS'  FAILURE TO MAKE GOOD FAITH EFFORTS TO ACHIEVE THE MAXI-
MUM FEASIBLE PARTICIPATION OF MINORITY GROUP MEMBERS AND  WOMEN  IN  THE
PERFORMANCE  OF THE SUBCONTRACTED WORK, THE STATE AGENCY SHALL RECOMMEND
TO THE DIRECTOR AND THE DEPARTMENT THAT THE SUBCONTRACTOR  BE  DEEMED  A
NON-COMPLIANT CONTRACTOR.
  5.  UPON  RECEIPT  OF  A  RECOMMENDATION  FROM  A  STATE AGENCY THAT A
CONTRACTOR OR SUBCONTRACTOR SHOULD BE DEEMED A NON-COMPLIANT CONTRACTOR,
THE DIRECTOR SHALL, WITH THE ASSISTANCE OF THE  DEPARTMENT,  REVIEW  THE
FACTS  AND  CIRCUMSTANCES  FORMING  THE  BASIS OF THE RECOMMENDATION AND
ISSUE A DETERMINATION AS TO WHETHER OR NOT THE CONTRACTOR OR SUBCONTRAC-
TOR SHOULD BE DEEMED A NON-COMPLIANT CONTRACTOR AND, IF SO, THE DURATION
OF SUCH STATUS AS A NON-COMPLIANT CONTRACTOR. IN DETERMINING  THE  DURA-
TION  OF  A  CONTRACTOR'S  OR  SUBCONTRACTOR'S STATUS AS A NON-COMPLIANT
CONTRACTOR, THE DIRECTOR SHALL CONSIDER:
  (I) WHETHER THE CONTRACTOR OR SUBCONTRACTOR HAS PREVIOUSLY BEEN DEEMED
A NON-COMPLIANT CONTRACTOR;
  (II) THE NUMBER OF HOURS OF EXPECTED PARTICIPATION BY  MINORITY  GROUP
MEMBERS  AND  WOMEN  LOST AS A RESULT OF THE CONTRACTOR'S OR SUBCONTRAC-
TOR'S FAILURE TO MAKE GOOD  FAITH  EFFORTS  TO  INCLUDE  MINORITY  GROUP
MEMBERS OR WOMEN IN THE PERFORMANCE OF ONE OR MORE STATE CONTRACTS; AND
  (III)  WHETHER  THE CONTRACTOR OR SUBCONTRACTOR HAS OFFERED TO PROVIDE
EMPLOYMENT OPPORTUNITIES, TRAINING, OR OTHER REMEDIAL BENEFITS TO MINOR-
ITY GROUP MEMBERS OR WOMEN IN RELEVANT TRADES, PROFESSIONS,  OR  OCCUPA-
TIONS.
  6.  A CONTRACTOR OR SUBCONTRACTOR DEEMED A NON-COMPLIANT CONTRACTOR BY
THE DIRECTOR MAY REQUEST AN ADMINISTRATIVE HEARING BEFORE AN INDEPENDENT
HEARING OFFICER TO APPEAL THE DETERMINATION OF THE DIRECTOR.  THE  DECI-
SION  OF  THE  HEARING OFFICER SHALL BE FINAL AND MAY ONLY BE VACATED OR
MODIFIED AS PROVIDED IN ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE  LAW
AND  RULES  UPON  AN  APPLICATION  MADE WITHIN THE TIME PROVIDED BY SUCH
ARTICLE.
  7. UPON A FINAL DETERMINATION THAT A CONTRACTOR OR SUBCONTRACTOR IS  A
NON-COMPLIANT  CONTRACTOR,  THE  DIRECTOR  SHALL  LIST THE CONTRACTOR OR
SUBCONTRACTOR AS SUCH ON ITS WEBSITE  AND  INDICATE  THE  TERM  OF  SUCH
CONTRACTOR'S  OR SUBCONTRACTOR'S STATUS AS A NON-COMPLIANT CONTRACTOR. A
NON-COMPLIANT  CONTRACTOR  SHALL  BE  INELIGIBLE  TO  PARTICIPATE  AS  A
CONTRACTOR OR SUBCONTRACTOR ON ANY STATE CONTRACT.

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  §  825.  POWERS AND RESPONSIBILITIES OF THE DIVISION.  1. THE DIRECTOR
SHALL POST TO THE WEBSITE OF THE DIVISION ON OR BEFORE  APRIL  FIRST  OF
EACH  YEAR  THE ASPIRATIONAL GOALS FOR THE UTILIZATION OF MINORITY GROUP
MEMBERS AND WOMEN IN CONSTRUCTION REQUIRED  PURSUANT  TO  SECTION  EIGHT
HUNDRED TWENTY-TWO OF THIS ARTICLE.
  2.  THE DIRECTOR SHALL PROMULGATE RULES AND REGULATIONS FOR THE IMPLE-
MENTATION OF THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO, PROCEDURES FOR
THE SUBMISSION OF CERTIFICATIONS  AND  WORKFORCE  UTILIZATION  PLANS  BY
CONTRACTORS,  CRITERIA  FOR  GRANTING WAIVERS OF WORKFORCE PARTICIPATION
GOALS, AND THE CONTENTS OF REPORTS BY STATE  AGENCIES  CONCERNING  THEIR
IMPLEMENTATION OF THE REQUIREMENTS OF THIS ARTICLE.
  3.  THE  DIVISION  SHALL,  FROM  TIME  TO TIME, REVIEW THE FACILITIES,
BOOKS, AND RECORDS OF STATE AGENCIES TO ASCERTAIN THE ACCURACY OF  THEIR
REPORTS  AND THEIR COMPLIANCE WITH THE REQUIREMENTS OF THIS ARTICLE. THE
DEPARTMENT SHALL PROVIDE SUCH ASSISTANCE AS THE DIRECTOR  SHALL  REQUIRE
IN CARRYING OUT THE REQUIREMENTS OF THIS SECTION.
  §  826.  SEVERABILITY.  IF ANY CLAUSE, SENTENCE, PARAGRAPH, SECTION OR
PART OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT  JURIS-
DICTION  TO BE INVALID, THE JUDGMENT SHALL NOT AFFECT, IMPAIR OR INVALI-
DATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN  ITS  OPERATION  TO
THE CLAUSE, SENTENCE, PARAGRAPH, SECTION OR PART OF THIS ARTICLE DIRECT-
LY  INVOLVED  IN  THE  CONTROVERSY IN WHICH THE JUDGMENT SHALL HAVE BEEN
RENDERED.
  § 16. This act shall take effect on April 1, 2018; provided,  however,
that
  (a)  the  amendments  to  article  15-A  of the executive law, made by
sections one, two, three, four, five, six, seven and eight of this  act,
shall  not  affect  the  expiration and repeal of such article and shall
expire and be deemed repealed therewith;
  (b) the amendments to section 163 of the state finance  law,  made  by
section  nine of this act, shall not affect the expiration and repeal of
such section, and shall expire and be deemed repealed therewith;
  (c) the amendments to section 139-j of the state finance law, made  by
section  eleven  of this act, shall not affect the expiration and repeal
of such section, and shall expire and be deemed repealed therewith; and
  (d) section fifteen of this act shall expire and  be  deemed  repealed
December 31, 2023.

                                 PART R

  Section  1. Paragraph (i) of subdivision (a) of section 2 of part F of
chapter 60 of the laws of 2015, constituting the infrastructure  invest-
ment  act, as amended by section 1 of part RRR of chapter 59 of the laws
of 2017, is amended to read as follows:
  (i) "authorized state entity" shall mean the New  York  state  thruway
authority, the department of transportation, the office of parks, recre-
ation and historic preservation, the department of environmental conser-
vation [and], the New York state bridge authority, THE DORMITORY AUTHOR-
ITY,  THE  NEW  YORK  STATE URBAN DEVELOPMENT CORPORATION, THE OFFICE OF
GENERAL SERVICES, THE DEPARTMENT OF HEALTH, AND THE NEW YORK STATE OLYM-
PIC REGIONAL DEVELOPMENT AUTHORITY.
  § 2. Section 3 of part F of chapter 60 of the laws of 2015, constitut-
ing the infrastructure investment act, as amended by section 3  of  part
RRR of chapter 59 of the laws of 2017, is amended to read as follows:
  §  3. Notwithstanding the provisions of section 38 of the highway law,
section 136-a of the state finance law, [section]  SECTIONS  359,  1678,

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1680,  1680-A  AND  2879-A  of  the  public  authorities  law, [section]
SECTIONS 407-A, 6281 AND 7210 of the education law, SECTIONS 8 AND 9  OF
THE PUBLIC BUILDINGS LAW, SECTION 11 OF CHAPTER 795 OF THE LAWS OF 1967,
SECTIONS  8  AND  9  OF  SECTION 1 OF CHAPTER 359 OF THE LAWS OF 1968 AS
AMENDED, SECTION 11 OF SECTION 1 OF CHAPTER 174 OF THE LAWS OF 1968,  AS
AMENDED,  SECTION  29  OF CHAPTER 337 OF THE LAWS OF 1972, SECTION 21 OF
CHAPTER 464 OF THE LAWS OF 1972, SECTION 103 OF  THE  GENERAL  MUNICIPAL
LAW,  and  the  provisions  of  any  other  law  to the contrary, and in
conformity with the requirements of this act, an authorized state entity
may utilize the alternative delivery method referred to as  design-build
contracts,  in  consultation with relevant local labor organizations and
construction industry, for capital projects LOCATED  IN  THE  STATE  AND
related  to  [the  state's]  physical infrastructure, including, but not
limited to, [the state's] BUILDINGS AND  APPURTENANT  STRUCTURES,  high-
ways,  bridges, dams, flood control projects, canals, and parks, includ-
ing, but not limited to, to repair damage caused by natural disaster, to
correct health and safety defects, to  comply  with  federal  and  state
laws,  standards,  and  regulations,  to  extend  the  useful life of or
replace [the state's] BUILDINGS AND  APPURTENANT  STRUCTURES,  highways,
bridges,  dams,  flood control projects, canals, and parks or to improve
or add to [the state's] BUILDINGS AND APPURTENANT STRUCTURES,  highways,
bridges,  dams, flood control projects, canals, and parks; provided that
for the contracts executed by  the  department  of  transportation,  the
office of parks, recreation and historic preservation, or the department
of environmental conservation, THE OFFICE OF THE GENERAL SERVICES OR THE
DEPARTMENT  OF  HEALTH, the total cost of each such project shall not be
less than ten million dollars ($10,000,000).
  § 3. Section 7 of part F of chapter 60 of the laws of 2015, constitut-
ing the infrastructure investment act, is amended to read as follows:
  § 7. If otherwise  applicable,  capital  projects  undertaken  by  the
authorized state entity pursuant to this act shall be subject to section
135  of  the state finance law, SECTION 101 OF THE GENERAL MUNICIPAL LAW
and section 222 of the labor law; PROVIDED, HOWEVER, THAT AN  AUTHORIZED
ENTITY  MAY  FULFILL  ITS  OBLIGATIONS  UNDER  SECTION  135 OF THE STATE
FINANCE LAW OR SECTION 101 OF THE GENERAL MUNICIPAL LAW BY REQUIRING THE
CONTRACTOR TO PREPARE SEPARATE SPECIFICATIONS IN ACCORDANCE WITH SECTION
135 OF THE STATE FINANCE LAW OR SECTION 101 OF THE GENERAL MUNICIPAL LAW
AS THE CASE MAY BE.
  § 4. Section 13 of part F of chapter 60 of the laws of  2015,  consti-
tuting  the  infrastructure  investment act, as amended by section 11 of
part RRR of chapter 59 of the laws  of  2017,  is  amended  to  read  as
follows:
  §  13. Alternative construction awarding processes.  (a) Notwithstand-
ing the provisions of any other law  to  the  contrary,  the  authorized
state entity may award a construction contract:
  1. To the contractor offering the best value[; or]:
  [2.]  (I) Utilizing a cost-plus not to exceed guaranteed maximum price
form of contract in which the authorized state entity shall be  entitled
to monitor and audit all project costs. In establishing the schedule and
process for determining a guaranteed maximum price, the contract between
the authorized state entity and the contractor shall:
  [(i)]  (A)  describe  the scope of the work and the cost of performing
such work;
  [(ii)] (B) include a detailed line item cost breakdown;
  [(iii)] (C) include a list of all drawings, specifications  and  other
information on which the guaranteed maximum price is based;

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  [(iv)]  (D)  include the dates for substantial and final completion on
which the guaranteed maximum price is based; and
  [(v)] (E) include a schedule of unit prices; or
  [3.] (II) Utilizing a lump sum contract in which the contractor agrees
to  accept  a  set dollar amount for a contract which comprises a single
bid without providing a cost breakdown for all costs such as for  equip-
ment, labor, materials, as well as such contractor's profit for complet-
ing all items of work comprising the project WHICH LUMP SUM PRICE MAY BE
NEGOTIATED  AND  ESTABLISHED  BY  THE AUTHORIZED STATE ENTITY BASED ON A
PROPOSED GUARANTEED MAXIMUM PRICE.
  2. THE DESIGN-BUILD CONTRACT MAY INCLUDE BOTH LUMP  SUM  ELEMENTS  AND
COST-PLUS  NOT TO EXCEED GUARANTEED MAXIMUM PRICE ELEMENTS, AND ALSO MAY
PROVIDE FOR PROFESSIONAL SERVICES ON A FEE-FOR-SERVICE BASIS.
  (b) Capital projects undertaken by  an  authorized  state  entity  may
include  an  incentive  clause  in  the contract for various performance
objectives, but the incentive clause shall not include an incentive that
exceeds the quantifiable value of the benefit received by the authorized
state entity. [The] NOTWITHSTANDING THE PROVISIONS OF SECTIONS  136  AND
137  OF  THE STATE FINANCE LAW, THE authorized state entity shall estab-
lish such performance and payment bonds, BONDS OR OTHER FORM  OF  UNDER-
TAKING, as it deems necessary.
  §  5.  Part  F  of  chapter  60  of the laws of 2015, constituting the
infrastructure investment act, is amended by adding a new  section  15-a
to read as follows:
  §  15-A.  ANY CONTRACT AWARDED PURSUANT TO THIS ACT SHALL BE DEEMED TO
BE AWARDED PURSUANT TO A COMPETITIVE PROCUREMENT FOR PURPOSES OF SECTION
2879-A OF THE PUBLIC AUTHORITIES LAW.
  § 6. This act shall take effect immediately;  provided,  however  that
the amendments to the infrastructure investment act made by sections one
through  five  of  this  act shall not affect the repeal of such act and
shall be deemed repealed therewith.

                                 PART S

  Section 1. Section 2 of chapter 21 of the laws of 2003,  amending  the
executive  law  relating to permitting the secretary of state to provide
special handling for all documents filed or issued by  the  division  of
corporations  and to permit additional levels of such expedited service,
as amended by section 1 of part Q of chapter 58 of the laws of 2017,  is
amended to read as follows:
  §  2.  This  act shall take effect immediately, provided however, that
section one of this act shall be deemed to have been in full  force  and
effect  on  and  after  April 1, 2003 and shall expire March 31, [2018]
2019.
  § 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after March 31, 2018.

                                 PART T

  Section  1.  Paragraph  (d) of section 304 of the business corporation
law is amended to read as follows:
  (d) ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY  OF
STATE  AS AGENT OF A DOMESTIC CORPORATION OR FOREIGN CORPORATION FOR THE
PURPOSE OF MAILING PROCESS SHALL BE THE POST OFFICE ADDRESS,  WITHIN  OR
WITHOUT  THE  STATE,  TO  WHICH A PERSON SHALL MAIL PROCESS AGAINST SUCH
CORPORATION AS REQUIRED BY THIS ARTICLE.  Any  designated  [post-office]

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POST  OFFICE  address  to which the secretary of state OR A PERSON shall
mail a copy of ANY process served upon [him] THE SECRETARY OF  STATE  as
agent of a domestic corporation or a foreign corporation, shall continue
until the filing of a certificate under this chapter directing the mail-
ing to a different [post-office] POST OFFICE address.
  §  2. Paragraph (a) of section 305 of the business corporation law, as
amended by chapter 131 of the laws  of  1985,  is  amended  to  read  as
follows:
  (a)  In  addition to such designation of the secretary of state, every
domestic corporation or authorized foreign corporation may  designate  a
registered  agent  in  this  state upon whom process against such corpo-
ration may be served. The agent shall be a natural person who is a resi-
dent of or has a business address in this state [or], a domestic  corpo-
ration  or foreign corporation of any type or kind formed, or authorized
to do business in this state[,] under this chapter or  under  any  other
statute  of  this  state,  OR  A  DOMESTIC  LIMITED LIABILITY COMPANY OR
FOREIGN LIMITED LIABILITY COMPANY FORMED OR AUTHORIZED TO DO BUSINESS IN
THIS STATE.
  § 3. Subparagraph 1 of paragraph (b) of section 306  of  the  business
corporation  law,  as  amended  by  chapter  419 of the laws of 1990, is
amended to read as follows:
  (1) Service of process on the secretary of state as agent of a  domes-
tic or authorized foreign corporation, OR OTHER BUSINESS ENTITY THAT HAS
DESIGNATED THE SECRETARY OF STATE AS AGENT FOR SERVICE OF PROCESS PURSU-
ANT TO ARTICLE NINE OF THIS CHAPTER, shall be made by [personally deliv-
ering  to  and  leaving with the secretary of state or a deputy, or with
any person authorized by the secretary of state to receive such service,
at the office of the department of state in the city of  Albany,  dupli-
cate  copies  of such process together with the statutory fee, which fee
shall be a taxable disbursement]  MAILING  THE  PROCESS  AND  NOTICE  OF
SERVICE  THEREOF  BY  CERTIFIED  MAIL, RETURN RECEIPT REQUESTED, TO SUCH
CORPORATION OR OTHER BUSINESS ENTITY, AT THE POST OFFICE ADDRESS ON FILE
IN THE DEPARTMENT OF STATE SPECIFIED FOR THIS PURPOSE. IF A DOMESTIC  OR
AUTHORIZED  FOREIGN  CORPORATION  HAS  NO  SUCH  ADDRESS  ON FILE IN THE
DEPARTMENT OF STATE, THE PROCESS AND NOTICE OF SERVICE THEREOF SHALL  BE
MAILED,  IN  THE CASE OF A DOMESTIC CORPORATION, IN CARE OF ANY DIRECTOR
NAMED IN ITS CERTIFICATE OF  INCORPORATION  AT  THE  DIRECTOR'S  ADDRESS
STATED  THEREIN OR, IN THE CASE OF AN AUTHORIZED FOREIGN CORPORATION, TO
SUCH CORPORATION AT THE ADDRESS OF ITS OFFICE WITHIN THIS STATE ON  FILE
IN THE DEPARTMENT. ON THE SAME DAY THAT SUCH PROCESS IS MAILED, A DUPLI-
CATE  COPY OF SUCH PROCESS AND PROOF OF MAILING TOGETHER WITH THE STATU-
TORY FEE, WHICH FEE SHALL BE A TAXABLE DISBURSEMENT, SHALL BE PERSONALLY
DELIVERED TO AND LEFT WITH THE SECRETARY OF STATE OR A DEPUTY,  OR  WITH
ANY PERSON AUTHORIZED BY THE SECRETARY OF STATE TO RECEIVE SUCH SERVICE,
AT THE OFFICE OF THE DEPARTMENT OF STATE IN THE CITY OF ALBANY. PROOF OF
MAILING  SHALL  BE BY AFFIDAVIT OF COMPLIANCE WITH THIS SECTION. Service
of process on  such  corporation  OR  OTHER  BUSINESS  ENTITY  shall  be
complete  when  the  secretary  of state is so served. [The secretary of
state shall promptly send one of such copies by certified  mail,  return
receipt  requested,  to such corporation, at the post office address, on
file in the department of state, specified for the purpose. If a  domes-
tic or authorized foreign corporation has no such address on file in the
department  of state, the secretary of state shall so mail such copy, in
the case of a domestic corporation, in care of any director named in its
certificate of incorporation at the director's  address  stated  therein
or,  in  the  case  of an authorized foreign corporation, to such corpo-

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ration at the address of its office within this state  on  file  in  the
department.]
  §  4.  Subparagraphs  2 and 3 of paragraph (a) of section 306-A of the
business corporation law, as added by chapter 469 of the laws  of  1997,
are amended to read as follows:
  (2)  That  the  address of the party has been designated by the corpo-
ration as the post office address to which [the secretary  of  state]  A
PERSON shall mail a copy of any process served on the secretary of state
as  agent  for  such corporation, SPECIFYING SUCH ADDRESS, and that such
party wishes to resign.
  (3) That AT LEAST sixty days prior to the filing of the certificate of
resignation FOR RECEIPT OF PROCESS with  the  department  of  state  the
party  has  sent a copy of the certificate of resignation for receipt of
process by registered or certified mail to the address of the registered
agent of the designating corporation, if other than the party filing the
certificate of resignation[,] for receipt of process, or if the [resign-
ing] DESIGNATING corporation has no registered agent, then to  the  last
address  of  the  designating corporation known to the party, specifying
the address to which the copy was sent. If there is no registered  agent
and  no  known  address  of the designating corporation, the party shall
attach an affidavit to the  certificate  stating  that  a  diligent  but
unsuccessful  search  was  made  by the party to locate the corporation,
specifying what efforts were made.
  § 5. Subparagraph 7 of paragraph (a) of section 402  of  the  business
corporation law is amended to read as follows:
  (7)  A  designation  of  the secretary of state as agent of the corpo-
ration upon whom process against it may be served and  the  post  office
address, within or without this state, to which [the secretary of state]
A  PERSON  shall mail a copy of any process against it served upon [him]
THE SECRETARY OF STATE.
  § 6. Subparagraph (c) of paragraph 1 of section 408  of  the  business
corporation  law, as amended by section 3 of part S of chapter 59 of the
laws of 2015, is amended to read as follows:
  (c) The post office address, within or without this  state,  to  which
[the  secretary  of  state]  A  PERSON  shall mail a copy of any process
against it served upon [him or  her]  THE  SECRETARY  OF  STATE.    Such
address shall supersede any previous address on file with the department
of state for this purpose.
  §  7.  Subparagraph  4 of paragraph (b) of section 801 of the business
corporation law is amended to read as follows:
  (4) To specify or change the post office address to which [the  secre-
tary  of  state]  A  PERSON shall mail a copy of any process against the
corporation served upon [him] THE SECRETARY OF STATE.
  § 8. Subparagraph 2 of paragraph (b) of section 803  of  the  business
corporation  law,  as  amended  by  chapter  803 of the laws of 1965, is
amended to read as follows:
  (2) To specify or change the post office address to which [the  secre-
tary  of  state]  A  PERSON shall mail a copy of any process against the
corporation served upon [him] THE SECRETARY OF STATE.
  § 9. Paragraph (b) of section 805-A of the business  corporation  law,
as  added  by  chapter  725  of  the laws of 1964, is amended to read as
follows:
  (b) A certificate of change which changes only the post office address
to which [the secretary of state] A PERSON shall  mail  a  copy  of  any
process  against  a  corporation  served  upon [him or] THE SECRETARY OF
STATE AND/OR the address of the registered agent, provided such  address

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being changed is the address of a person, partnership, LIMITED LIABILITY
COMPANY  or other corporation whose address, as agent, is the address to
be changed or who has been  designated  as  registered  agent  for  such
corporation,  may  be signed[, verified] and delivered to the department
of state by such agent. The certificate of change shall  set  forth  the
statements  required under subparagraphs [(a)] (1), (2) and (3) OF PARA-
GRAPH (A) of this section; that a notice  of  the  proposed  change  was
mailed  to the corporation by the party signing the certificate not less
than thirty days prior to the date of delivery  to  the  department  and
that such corporation has not objected thereto; and that the party sign-
ing  the  certificate  is the agent of such corporation to whose address
[the secretary of state] A PERSON is required to mail copies of  process
SERVED ON THE SECRETARY OF STATE or the registered agent, if such be the
case.  A  certificate  signed[, verified] and delivered under this para-
graph shall not be deemed to effect a change of location of  the  office
of the corporation in whose behalf such certificate is filed.
  § 10. Subparagraph 8 of paragraph (a) of section 904-a of the business
corporation  law,  as  amended  by  chapter  177 of the laws of 2008, is
amended to read as follows:
  (8) If the surviving or resulting entity is a foreign  corporation  or
other  business  entity,  a designation of the secretary of state as its
agent upon whom process against it may be served in the manner set forth
in paragraph (b) of section three hundred six of this  chapter,  in  any
action or special proceeding, and a post office address, within or with-
out  this state, to which [the secretary of state] A PERSON shall mail a
copy of any process against it served upon [him] THE SECRETARY OF STATE.
Such post office address shall supersede any prior address designated as
the address to which process shall be mailed;
  § 11. Clause (G) of subparagraph 2 of paragraph (e) of section 907  of
the  business  corporation law, as amended by chapter 494 of the laws of
1997, is amended to read as follows:
  (G) A designation of the secretary of state as  its  agent  upon  whom
process  against  it  may be served in the manner set forth in paragraph
(b) of section 306 (Service  of  process),  in  any  action  or  special
proceeding,  and a post office address, within or without this state, to
which [the secretary of state] A PERSON shall mail a copy of any process
against it served upon [him] THE SECRETARY OF STATE.  Such  post  office
address  shall  supersede any prior address designated as the address to
which process shall be mailed.
  § 12. Subparagraph 6 of paragraph (a) of section 1304 of the  business
corporation  law,  as  amended by chapter 684 of the laws of 1963 and as
renumbered by chapter 590 of the laws of 1982, is  amended  to  read  as
follows:
  (6)  A  designation  of  the secretary of state as its agent upon whom
process against it may be served and the post office address, within  or
without  this  state,  to  which [the secretary of state] A PERSON shall
mail a copy of any process against it served upon [him] THE SECRETARY OF
STATE.
  § 13. Subparagraph 7 of paragraph (a) of section 1308 of the  business
corporation  law,  as  amended by chapter 725 of the laws of 1964 and as
renumbered by chapter 186 of the laws of 1983, is  amended  to  read  as
follows:
  (7)  To specify or change the post office address to which [the secre-
tary of state] A PERSON shall mail a copy  of  any  process  against  it
served upon [him] THE SECRETARY OF STATE.

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  §  14.  Subparagraph  2  of paragraph (a) and paragraph (c) of section
1309-A of the business corporation law, subparagraph 2 of paragraph  (a)
as added by chapter 725 of the laws of 1964 and paragraph (c) as amended
by chapter 172 of the laws of 1999, are amended to read as follows:
  (2)  To specify or change the post office address to which [the secre-
tary of state] A PERSON shall mail a copy  of  any  process  against  it
served upon [him] THE SECRETARY OF STATE.
  (c) A certificate of change of application for authority which changes
only  the post office address to which [the secretary of state] A PERSON
shall mail a copy of any process against an  authorized  foreign  corpo-
ration  served upon [him or which] THE SECRETARY OF STATE AND/OR changes
the address of its  registered  agent,  provided  such  address  is  the
address  of  a  person,  partnership, LIMITED LIABILITY COMPANY or other
corporation whose address, as agent, is the address to be changed or who
has been designated as registered  agent  for  such  authorized  foreign
corporation,  may  be signed and delivered to the department of state by
such agent. The certificate of change of application for authority shall
set forth the statements required under subparagraphs (1), (2), (3)  and
(4)  of  paragraph  (b)  of  this section; that a notice of the proposed
change was mailed by the party signing the certificate to the authorized
foreign corporation not less than thirty  days  prior  to  the  date  of
delivery  to  the  department and that such corporation has not objected
thereto; and that the party signing the certificate is the agent of such
foreign corporation to whose address [the secretary of state]  A  PERSON
is  required  to mail copies of process SERVED ON THE SECRETARY OF STATE
or the registered agent, if such be the case. A certificate  signed  and
delivered under this paragraph shall not be deemed to effect a change of
location  of  the office of the corporation in whose behalf such certif-
icate is filed.
  § 15. Subparagraphs 1 and 6 of paragraph (a) of section  1310  of  the
business  corporation  law,  subparagraph 1 as amended by chapter 590 of
the laws of 1982, are amended to read as follows:
  (1) The name of the foreign corporation as it appears on the index  of
names  of  existing  domestic and authorized foreign corporations of any
type or kind in the department of state, division of corporations  [or,]
AND  the  fictitious  name, IF ANY, the corporation has agreed to use in
this state pursuant to paragraph (d) of section 1301 of  this  [chapter]
ARTICLE.
  (6) A post office address, within or without this state, to which [the
secretary of state] A PERSON shall mail a copy of any process against it
served upon [him] THE SECRETARY OF STATE.
  §  16. Subparagraph 4 of paragraph (d) of section 1310 of the business
corporation law is amended to read as follows:
  (4) The changed post office address, within or without this state,  to
which [the secretary of state] A PERSON shall mail a copy of any process
against it served upon [him] THE SECRETARY OF STATE.
  §  17.  Section  1311  of  the business corporation law, as amended by
chapter 375 of the laws of 1998, is amended to read as follows:
§ 1311. Termination of existence.
  When an authorized foreign corporation is dissolved or  its  authority
or existence is otherwise terminated or cancelled in the jurisdiction of
its  incorporation  or  when  such foreign corporation is merged into or
consolidated with another foreign  corporation,  a  certificate  of  the
secretary of state, or official performing the equivalent function as to
corporate  records, of the jurisdiction of incorporation of such foreign
corporation attesting to the occurrence of any such event or a certified

S. 7508--A                         74                         A. 9508--A

copy of an order or decree of a court of such jurisdiction directing the
dissolution of such foreign corporation, the termination of  its  exist-
ence  or  the  cancellation  of  its authority shall be delivered to the
department  of  state.  The  filing  of the certificate, order or decree
shall have the same effect as the filing of a certificate  of  surrender
of  authority under section 1310 (Surrender of authority). The secretary
of state shall continue as agent of the foreign  corporation  upon  whom
process  against  it  may be served in the manner set forth in paragraph
(b) of section 306 (Service  of  process),  in  any  action  or  special
proceeding  based  upon  any  liability  or  obligation  incurred by the
foreign corporation within this  state  prior  to  the  filing  of  such
certificate,  order  or  decree and [he] THE PERSON SERVING SUCH PROCESS
shall [promptly cause a copy of  any  such]  SEND  THE  process  [to  be
mailed]  by  [registered]  CERTIFIED  mail, return receipt requested, to
such foreign corporation at the post office address on file in [his] THE
office OF THE SECRETARY OF STATE specified for such  purpose  AND  SHALL
PROVIDE  THE SECRETARY OF STATE WITH PROOF OF SUCH MAILING IN THE MANNER
SET FORTH IN PARAGRAPH (B) OF SECTION 306 (SERVICE  OF  PROCESS).    The
post  office  address  may  be  changed by signing and delivering to the
department of state a certificate of change setting forth the statements
required under section  1309-A  (Certificate  of  change;  contents)  to
effect  a  change in the post office address under subparagraph SEVEN OF
PARAGRAPH (a) [(4)] of section 1308 (Amendments or changes).
  § 18. Subparagraph 6 of paragraph (a) of section 1530 of the  business
corporation law, as added by chapter 505 of the laws of 1983, is amended
to read as follows:
  (6)  A  designation  of  the secretary of state as its agent upon whom
process against it may be served and the post office address, within  or
without  this  state,  to  which [the secretary of state] A PERSON shall
mail a copy of any process against it served upon [him] THE SECRETARY OF
STATE.
  § 19. Subdivision 10 of section 11  of  the  cooperative  corporations
law,  as  added by chapter 97 of the laws of 1969, is amended to read as
follows:
  10. A designation of the secretary of state as  agent  of  the  corpo-
ration  upon  whom  process against it may be served and the post office
address, within or without this state, to which [the secretary of state]
A PERSON shall mail a copy of any process against it served  upon  [him]
THE SECRETARY OF STATE.
  § 20. Subdivision 10 of section 96 of the executive law, as amended by
chapter 39 of the laws of 1987, is amended to read as follows:
  10.  For service of process on the secretary of state, acting as agent
for a third party pursuant to  law,  except  as  otherwise  specifically
provided  by  law,  forty dollars. No fee shall be collected for process
served on behalf of [a] ANY STATE OFFICIAL, DEPARTMENT,  BOARD,  AGENCY,
AUTHORITY,  county, city, town or village or other political subdivision
of the state. The fees paid the secretary of state shall  be  a  taxable
disbursement.
  §  21.  The  opening  paragraph  of subdivision 2 and subdivision 3 of
section 18 of the general associations law, as amended by chapter 13  of
the laws of 1938, are amended and two new subdivisions 5 and 6 are added
to read as follows:
  Every  association  doing business within this state shall file in the
department of state a certificate in its  associate  name,  signed  [and
acknowledged]  by  its  president, or a vice-president, or secretary, or
treasurer, or managing director, or trustee, designating  the  secretary

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of  state  as  an  agent  upon  whom process in any action or proceeding
against the association may be served within  this  state,  and  setting
forth an address to which [the secretary of state] A PERSON shall mail a
copy  of  any  process  against the association which may be served upon
[him] THE SECRETARY OF STATE pursuant to law.   Annexed to  the  certif-
icate  of  designation shall be a statement, executed in the same manner
as the certificate is required to be executed under this section,  which
shall set forth:
  3.    Any  association,  from  time to time, may change the address to
which [the secretary of state] A PERSON is directed to  mail  copies  of
process  SERVED ON THE SECRETARY OF STATE, by filing a statement to that
effect, executed[,] AND signed [and acknowledged] in like  manner  as  a
certificate of designation as herein provided.
  5.   ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY OF
STATE AS AGENT IN ANY ACTION OR PROCEEDING AGAINST THE  ASSOCIATION  FOR
THE  PURPOSE OF MAILING PROCESS SHALL BE THE POST OFFICE ADDRESS, WITHIN
OR WITHOUT THE STATE, TO WHICH A PERSON SHALL MAIL PROCESS AGAINST  SUCH
ASSOCIATION  AS  REQUIRED  BY  THIS ARTICLE. SUCH ADDRESS SHALL CONTINUE
UNTIL THE FILING OF A CERTIFICATE UNDER THIS CHAPTER DIRECTING THE MAIL-
ING TO A DIFFERENT POST OFFICE ADDRESS.
  6. "PROCESS" MEANS JUDICIAL PROCESS AND ALL ORDERS,  DEMANDS,  NOTICES
OR  OTHER PAPERS REQUIRED OR PERMITTED BY LAW TO BE PERSONALLY SERVED ON
AN ASSOCIATION, FOR THE PURPOSE OF ACQUIRING JURISDICTION OF SUCH  ASSO-
CIATION  IN  ANY  ACTION OR PROCEEDING, CIVIL OR CRIMINAL, WHETHER JUDI-
CIAL, ADMINISTRATIVE, ARBITRATIVE OR OTHERWISE, IN THIS STATE OR IN  THE
FEDERAL COURTS SITTING IN OR FOR THIS STATE.
  §  22. Section 19 of the general associations law, as amended by chap-
ter 166 of the laws of 1991, is amended to read as follows:
  § 19.  Service of process. 1. Service of process  against  an  associ-
ation  upon  the secretary of state shall be made by MAILING THE PROCESS
AND  NOTICE  OF  SERVICE  THEREOF  BY  CERTIFIED  MAIL,  RETURN  RECEIPT
REQUESTED,  TO  SUCH  CORPORATION  OR OTHER BUSINESS ENTITY, AT THE POST
OFFICE ADDRESS ON FILE IN THE DEPARTMENT OF  STATE  SPECIFIED  FOR  THIS
PURPOSE.  ON  THE SAME DAY THAT SUCH PROCESS IS MAILED, A DUPLICATE COPY
OF SUCH PROCESS AND PROOF OF MAILING SHALL  BE  personally  [delivering]
DELIVERED  to  and [leaving] LEFT with [him] THE SECRETARY OF STATE or a
deputy [secretary of state or an associate attorney, senior attorney  or
attorney  in the corporation division of the department of state, dupli-
cate copies of such process at the office of the department of state  in
the  city  of  Albany]  SO  DESIGNATED.  At the time of such service the
plaintiff shall pay a fee of forty dollars to the  secretary  of  state,
which  shall  be a taxable disbursement. [If the cost of registered mail
for transmitting a copy of the process  shall  exceed  two  dollars,  an
additional  fee  equal  to  such excess shall be paid at the time of the
service of such process. The secretary of state shall forthwith send  by
registered  mail  one  of  such copies to the association at the address
fixed for that purpose, as herein provided.]
  2. PROOF OF MAILING SHALL BE BY  AFFIDAVIT  OF  COMPLIANCE  WITH  THIS
SECTION.  SERVICE  OF PROCESS ON SUCH ASSOCIATION SHALL BE COMPLETE WHEN
THE SECRETARY OF STATE IS SO SERVED. If  the  action  or  proceeding  is
instituted in a court of limited jurisdiction, service of process may be
made in the manner provided in this section if the cause of action arose
within  the  territorial jurisdiction of the court and the office of the
defendant, as set forth in its statement filed pursuant to section eigh-
teen of this [chapter] ARTICLE, is within such territorial jurisdiction.

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  § 23. Subdivision 2 of section 352-b of the general business  law,  as
amended  by  chapter  252  of  the  laws  of 1983, is amended to read as
follows:
  2.  Service  of such process upon the secretary of state shall be made
by personally delivering to and leaving with [him or] THE  SECRETARY  OF
STATE,  a  deputy secretary of state, OR WITH A PERSON AUTHORIZED BY THE
SECRETARY OF STATE TO RECEIVE SUCH SERVICE, a copy thereof at the office
of the department of state in the city of Albany, and such service shall
be sufficient service provided that notice of such service and a copy of
such process are forthwith sent by the attorney general to such  person,
partnership,  corporation,  company, trust or association, by registered
or certified mail with return receipt requested, at  [his  or  its]  THE
office  as  set  forth  in  the "broker-dealer's statement", "salesman's
statement" or "investment advisor's statement" filed in  the  department
of  law  pursuant to section three hundred fifty-nine-e or section three
hundred fifty-nine-eee of this article, or in default of the  filing  of
such  statement,  at  the  last  address  known to the attorney general.
Service of such process shall be complete on  receipt  by  the  attorney
general  of a return receipt purporting to be signed by the addressee or
a person qualified to receive [his or its] registered or certified mail,
in accordance with the rules and customs of the post office  department,
or,  if  acceptance  was  refused by the addressee or [his or its] THEIR
agent, on return to the attorney general of the original envelope  bear-
ing  a  notation  by  the  postal  authorities  that receipt thereof was
refused.
  § 24. Section 686 of the general business law, as added by chapter 730
of the laws of 1980, is amended to read as follows:
  § 686. Designation of secretary of state as agent for service of proc-
ess; service of process. Any person who shall offer to sell  or  sell  a
franchise  in  this  state  as  a franchisor, subfranchisor or franchise
sales agent shall be deemed to have irrevocably appointed the  secretary
of  state as his or [its] HER agent upon whom may be served any summons,
complaint, subpoena, subpoena duces tecum, notice, order or other  proc-
ess  directed to such person, or any partner, principal, officer, sales-
man or director thereof, or his or [its] HER successor, administrator or
executor, in any action, investigation, or proceeding which arises under
this article or a rule hereunder, with the same force and validity as if
served personally on such person.  Service  of  such  process  upon  the
secretary of state shall be made by personally delivering to and leaving
with  [him  or]  THE SECRETARY OF STATE, a deputy secretary of state, OR
WITH ANY PERSON AUTHORIZED BY THE SECRETARY OF  STATE  TO  RECEIVE  SUCH
SERVICE,  a  copy  thereof at the office of the department of state, and
such service shall be sufficient provided that notice  of  such  service
and  a copy of such process are sent forthwith by the department to such
person, by registered or certified mail with return  receipt  requested,
at  [his] THE address [as] set forth in the application for registration
of his OR HER offering prospectus or in the registered offering prospec-
tus itself filed with the department of law pursuant to this article, or
in default of the filing of such application or prospectus, at the  last
address  known  to  the  department.  Service  of  such process shall be
complete upon receipt by the department of a return  receipt  purporting
to  be  signed by the addressee or a person qualified to receive [his or
its] registered or certified mail, in  accordance  with  the  rules  and
customs  of the post office department, or, if acceptance was refused or
unclaimed by the addressee or his or [its] HER agent, or if the address-
ee moved without leaving  a  forwarding  address,  upon  return  to  the

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department  of  the  original  envelope bearing a notation by the postal
authorities that receipt thereof was  refused  or  that  such  mail  was
otherwise undeliverable.
  §  25.  Paragraph  4  of subdivision (e) of section 203 of the limited
liability company law, as added by chapter 470 of the laws of  1997,  is
amended to read as follows:
  (4)  a  designation  of the secretary of state as agent of the limited
liability company upon whom process against it may  be  served  and  the
post  office address, within or without this state, to which [the secre-
tary of state] A PERSON shall mail a copy of  any  process  against  the
limited  liability  company  served  upon  [him or her] THE SECRETARY OF
STATE;
  § 26. Paragraph 4 of subdivision (a) of section  206  of  the  limited
liability  company law, as amended by chapter 44 of the laws of 2006, is
amended to read as follows:
  (4) a statement that the secretary of state  has  been  designated  as
agent  of the limited liability company upon whom process against it may
be served and the post office address, within or without this state,  to
which [the secretary of state] A PERSON shall mail a copy of any process
against it served upon [him or her] THE SECRETARY OF STATE;
  §  27.  Paragraph  6  of subdivision (d) of section 211 of the limited
liability company law is amended to read as follows:
  (6) a change in the post office address to  which  [the  secretary  of
state]  A  PERSON  shall  mail a copy of any process against the limited
liability company served upon [him or her] THE  SECRETARY  OF  STATE  if
such  change is made other than pursuant to section three hundred one of
this chapter;
  § 28. Section 211-A of the limited liability company law, as added  by
chapter 448 of the laws of 1998, is amended to read as follows:
  §  211-A.  Certificate  of change. (a) A limited liability company may
amend its articles of organization from time to time to (i)  specify  or
change  the  location  of  the  limited liability company's office; (ii)
specify or change the post office address to  which  [the  secretary  of
state]  A  PERSON  shall  mail a copy of any process against the limited
liability company served upon [him] THE SECRETARY OF  STATE;  and  (iii)
make, revoke or change the designation of a registered agent, or specify
or  change  the  address  of  the registered agent. Any one or more such
changes may be accomplished by filing  a  certificate  of  change  which
shall  be  entitled  "Certificate  of Change of ....... (name of limited
liability company) under section 211-A of the Limited Liability  Company
Law"  and  shall  be signed and delivered to the department of state. It
shall set forth:
  (1) the name of the limited liability company,  and  if  it  has  been
changed, the name under which it was formed;
  (2) the date the articles of organization were filed by the department
of state; and
  (3) each change effected thereby.
  (b) A certificate of change which changes only the post office address
to  which  [the  secretary  of  state] A PERSON shall mail a copy of any
process against a limited liability company served  upon  [him  or]  THE
SECRETARY  OF STATE AND/OR the address of the registered agent, provided
such address being changed is the  address  of  a  person,  partnership,
LIMITED LIABILITY COMPANY or corporation whose address, as agent, is the
address to be changed or who has been designated as registered agent for
such  limited  liability  company  may  be  signed  and delivered to the
department of state by such agent. The certificate of change  shall  set

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forth  the  statements  required  under subdivision (a) of this section;
that a notice of the proposed change was mailed to the domestic  limited
liability  company  by  the  party signing the certificate not less than
thirty days prior to the date of delivery to the department of state and
that  such  domestic limited liability company has not objected thereto;
and that the party signing the certificate is the agent of such  limited
liability  company to whose address [the secretary of state] A PERSON is
required to mail copies of process SERVED ON THE SECRETARY OF  STATE  or
the  registered  agent,  if  such  be the case. A certificate signed and
delivered under this subdivision shall not be deemed to effect a  change
of  location  of  the  office  of the limited liability company in whose
behalf such certificate is filed.
  § 29. Paragraph 2 of subdivision (b) of section  213  of  the  limited
liability company law is amended to read as follows:
  (2)  to  change  the  post  office  address to which [the secretary of
state] A PERSON shall mail a copy of any  process  against  the  limited
liability company served upon [him or her] THE SECRETARY OF STATE; and
  § 30. Subdivisions (c) and (e) of section 301 of the limited liability
company  law, subdivision (e) as amended by section 5 of part S of chap-
ter 59 of the laws of 2015, are amended to read as follows:
  (c) ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY  OF
STATE AS AGENT OF A DOMESTIC LIMITED LIABILITY COMPANY OR FOREIGN LIMIT-
ED  LIABILITY  COMPANY  FOR  THE PURPOSE OF MAILING PROCESS SHALL BE THE
POST OFFICE ADDRESS, WITHIN OR WITHOUT THE  STATE,  TO  WHICH  A  PERSON
SHALL MAIL PROCESS AGAINST SUCH LIMITED LIABILITY COMPANY AS REQUIRED BY
THIS  ARTICLE. Any designated post office address to which the secretary
of state OR A PERSON shall mail a copy of process served  upon  [him  or
her]  THE  SECRETARY  OF  STATE as agent of a domestic limited liability
company or a foreign limited liability company shall continue until  the
filing  of  a  certificate under this chapter directing the mailing to a
different post office address.
  [(e)] (D) (1) Except as otherwise provided in this subdivision,  every
limited liability company to which this chapter applies, shall biennial-
ly  in  the  calendar month during which its articles of organization or
application for authority were filed, or effective date thereof if stat-
ed, file on forms prescribed by the  secretary  of  state,  a  statement
setting  forth  the  post office address within or without this state to
which [the secretary of state] A PERSON shall mail a copy of any process
accepted against it served upon [him or her]  THE  SECRETARY  OF  STATE.
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
statements 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  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

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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.
  § 31. Paragraphs 2 and 3 of  subdivision  (a),  subparagraph  (ii)  of
paragraph  2  and subparagraph (ii) of paragraph 3 of subdivision (e) of
section 301-A of the limited liability company law, as added by  chapter
448 of the laws of 1998, are amended to read as follows:
  (2)  that  the address of the party has been designated by the limited
liability company as the post office address to which [the secretary  of
state] A PERSON shall mail a copy of any process served on the secretary
of  state  as agent for such limited liability company, SUCH ADDRESS and
that such party wishes to resign.
  (3) that AT LEAST  sixty days prior to the filing of  the  certificate
of  resignation  FOR RECEIPT OF PROCESS with the department of state the
party has sent a copy of the certificate of resignation for  receipt  of
process by registered or certified mail to the address of the registered
agent  of  the  designated  limited liability company, if other than the
party filing the certificate of resignation[,] for receipt  of  process,
or  if  the  [resigning]  DESIGNATING  limited  liability company has no
registered agent, then to the last address  of  the  designated  limited
liability  company  known  to the party, specifying the address to which
the copy was sent. If there is no registered agent and no known  address
of  the designating limited liability company, the party shall attach an
affidavit to the certificate stating that a  diligent  but  unsuccessful
search  was  made  by the party to locate the limited liability company,
specifying what efforts were made.
  (ii) sent by or on behalf of the plaintiff to such  limited  LIABILITY
company by registered or certified mail with return receipt requested to
the  last  address of such limited liability company known to the plain-
tiff.
  (ii) Where service of a copy of process was  effected  by  mailing  in
accordance  with this section, proof of service shall be by affidavit of
compliance with this section filed, together with  the  process,  within
thirty  days  after  receipt of the return receipt signed by the limited
liability company or other official proof of delivery or of the original
envelope mailed. If a copy of the process is mailed in  accordance  with
this  section,  there  shall  be  filed with the affidavit of compliance
either the return receipt signed by such limited  LIABILITY  company  or
other  official  proof of delivery, if acceptance was refused by it, the
original envelope with a notation by the postal authorities that accept-
ance was refused. If acceptance was refused a copy  of  the  notice  and
process  together  with notice of the mailing by registered or certified

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mail and refusal to accept  shall  be  promptly  sent  to  such  limited
liability company at the same address by ordinary mail and the affidavit
of  compliance  shall so state. Service of process shall be complete ten
days  after  such  papers  are  filed  with  the clerk of the court. The
refusal to accept delivery of the registered or  certified  mail  or  to
sign the return receipt shall not affect the validity of the service and
such  limited  liability  company  refusing to accept such registered or
certified mail shall be charged with knowledge of the contents thereof.
  § 32. Subdivision (a) of section 303 of the limited liability  company
law,  as  relettered  by  chapter 341 of the laws of 1999, is amended to
read as follows:
  (a) Service of process on the secretary of state as agent of a  domes-
tic limited liability company [or], authorized foreign limited liability
company,  OR  OTHER BUSINESS ENTITY THAT HAS DESIGNATED THE SECRETARY OF
STATE AS AGENT FOR SERVICE OF PROCESS PURSUANT TO ARTICLE  TEN  OF  THIS
CHAPTER,  SHALL  BE  MADE  BY  MAILING THE PROCESS AND NOTICE OF SERVICE
THEREOF BY CERTIFIED MAIL, RETURN RECEIPT  REQUESTED,  TO  SUCH  LIMITED
LIABILITY  COMPANY  OR OTHER BUSINESS ENTITY, AT THE POST OFFICE ADDRESS
ON FILE IN THE DEPARTMENT OF STATE SPECIFIED FOR THIS  PURPOSE.  ON  THE
SAME DAY AS SUCH PROCESS IS MAILED, A DUPLICATE COPY OF SUCH PROCESS AND
PROOF OF MAILING shall be [made by] personally [delivering] DELIVERED to
and  [leaving] LEFT with the secretary of state or his or her deputy, or
with any person authorized by the secretary of  state  to  receive  such
service, at the office of the department of state in the city of Albany,
[duplicate  copies  of  such  process]  together with the statutory fee,
which fee shall be a taxable disbursement.  PROOF OF MAILING SHALL BE BY
AFFIDAVIT OF COMPLIANCE WITH THIS SECTION. Service of  process  on  such
limited  liability  company  OR  OTHER BUSINESS ENTITY shall be complete
when the secretary of state is so served. [The secretary of state  shall
promptly  send  one  of  such  copies  by certified mail, return receipt
requested, to such limited liability company at the post office  address
on file in the department of state specified for that purpose.]
  §  33.  Section 305 of the limited liability company law is amended to
read as follows:
  § 305. Records of process served on  the  secretary  of  state.    The
[secretary  of  state]  DEPARTMENT  OF STATE shall keep a record of each
process served upon the secretary of state under this chapter, including
the date of such service [and the action of the secretary of state  with
reference thereto]. IT SHALL, UPON REQUEST MADE WITHIN TEN YEARS OF SUCH
SERVICE, ISSUE A CERTIFICATE UNDER ITS SEAL CERTIFYING AS TO THE RECEIPT
OF  THE  PROCESS  BY  AN  AUTHORIZED  PERSON, THE DATE AND PLACE OF SUCH
SERVICE AND THE RECEIPT OF THE STATUTORY FEE. PROCESS  SERVED  UPON  THE
SECRETARY  OF STATE UNDER THIS CHAPTER SHALL BE DESTROYED BY THE DEPART-
MENT OF STATE AFTER A PERIOD OF TEN YEARS FROM SUCH SERVICE.
  § 34. Paragraph 4 of subdivision (a) of section  802  of  the  limited
liability company law, as amended by chapter 470 of the laws of 1997, is
amended to read as follows:
  (4)  a  designation  of  the secretary of state as its agent upon whom
process against it may be served and the post office address, within  or
without  this  state,  to  which [the secretary of state] A PERSON shall
mail a copy of any process against it  served  upon  [him  or  her]  THE
SECRETARY OF STATE;
  §  35. Section 804-A of the limited liability company law, as added by
chapter 448 of the laws of 1998, is amended to read as follows:
  § 804-A. Certificate of change. (a) A foreign limited liability compa-
ny may amend its application for authority from  time  to  time  to  (i)

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specify  or  change  the  location  of  the  limited liability company's
office; (ii) specify or change the post office  address  to  which  [the
secretary  of  state]  A PERSON shall mail a copy of any process against
the  limited liability company served upon [him] THE SECRETARY OF STATE;
and (iii) to make, revoke or change  the  designation  of  a  registered
agent,  or  to  specify or change the address of a registered agent. Any
one or more such changes may be accomplished by filing a certificate  of
change  which shall be entitled "Certificate of Change of ........ (name
of