EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12574-03-7
S. 2009 2 A. 3009
the tax law, in relation to a program to provide tax incentives for
employers employing at risk youth (Part N); to amend the tax law, in
relation to extending the alternative fuels and electric vehicle
recharging property credit for five years (Part O); to amend the tax
law, in relation to the investment tax credit (Part P); to amend the
tax law, in relation to the treatment of single member limited liabil-
ity companies that are disregarded entities in determining eligibility
for tax credits (Part Q); to amend the tax law, in relation to extend-
ing the top personal income tax rate for three years; and to repeal
subparagraph (B) of paragraph 1 of subsection (a), subparagraph (B) of
paragraph 1 of subsection (b) and subparagraph (B) of paragraph 1 of
subsection (c) of section 601 of the tax law, relating to the imposi-
tion of tax (Part R); to amend the tax law and the administrative code
of the city of New York, in relation to permanently extending the high
income charitable contribution deduction limitation (Part S); to amend
the tax law, in relation to increasing the child and dependent care
tax credit (Part T); to amend the tax law, in relation to the finan-
cial institution data match system for state tax collection purposes
(Part U); to amend the civil service law and the tax law, in relation
to tax clearances for applicants for civil service employment (Part
V); to amend chapter 266 of the laws of 1986, amending the civil prac-
tice law and rules and other laws relating to malpractice and profes-
sional medical conduct, in relation to apportioning premium for
certain policies; to amend part J of chapter 63 of the laws of 2001
amending chapter 266 of the laws of 1986, amending the civil practice
law and rules and other laws relating to malpractice and professional
medical conduct, in relation to extending certain provisions concern-
ing the hospital excess liability pool; and to amend the tax law, in
relation to extending certain provisions concerning the hospital
excess liability pool and requiring a tax clearance for doctors and
dentists to be eligible for such excess coverage (Part W); to amend
chapter 59 of the laws of 2013, amending the tax law relating to serv-
ing an income execution with respect to individual tax debtors without
filing a warrant, in relation to making the provisions authorizing
service of income executions on individual tax debtors without filing
a warrant permanent (Part X); to amend the tax law, in relation to the
taxation of S corporations; and to repeal certain provisions of such
law relating thereto (Part Y); to amend the tax law, in relation to
the definition of New York source income (Part Z); to close the
nonresident partnership asset sale loophole (Part AA); to amend the
tax law, in relation to requiring marketplace providers to collect
sales tax (Part BB); to amend the tax law, in relation to closing the
existing tax loopholes for transactions between related entities under
article 28 and pursuant to the authority of article 29 of such law
(Part CC); to amend the tax law, in relation to clarifying the imposi-
tion of sales tax on gas service or electric service of whatever
nature (Part DD); to amend the tax law and the county law, in relation
to the imposition of a surcharge on prepaid wireless communications
service and devices (Part EE); to amend the public health law and the
education law, in relation to tobacco products, herbal cigarettes, and
vapor products; and to amend the tax law, in relation to imposing a
tax on vapor products (Part FF); to amend the tax law in relation to
the amount of untaxed cigarettes required to seize a vehicle and to
increase the penalty for the possession or sale of counterfeit tax
stamps or the device necessary to manufacture such stamps (Part GG);
to amend the tax law, in relation to authorizing jeopardy assessments
S. 2009 3 A. 3009
on cigarette and tobacco product taxes assessed under article 20 ther-
eof (Part HH); to amend the tax law, in relation to the imposition of
a tax on cigars under article 20 thereof (Part II); to amend the tax
law, in relation to the definition of a conveyance for real estate
transfer taxes (Part JJ); to amend the tax law, in relation to the
additional real estate transfer tax (Part KK); to amend the racing,
pari-mutuel wagering and breeding law, in relation to modifying the
funding of and improve the operation of drug testing in horse racing
(Part LL); to amend the racing, pari-mutuel wagering and breeding law,
the executive law, and the general municipal law, in relation to the
operation of charitable gaming; to amend the social services law, in
relation to penalties for unauthorized transactions relating to
certain public assistance; to amend the tax law, in relation to
certain income derived from the conduct of certain games of chance;
and to repeal certain provisions of the executive law, the general
municipal law and the tax law relating thereto (Part MM); to amend the
racing, pari-mutuel wagering and breeding law, in relation to allowing
for the reprivatization of NYRA, and under certain circumstances
racing after sunset and a reduction in winter racing days (Part NN);
to amend the racing, pari-mutuel wagering and breeding law, in
relation to licenses for simulcast facilities, sums relating to track
simulcast, simulcast of out-of state thoroughbred races, simulcasting
of races run by out-of-state harness tracks and distributions of
wagers; to amend chapter 281 of the laws of 1994 amending the racing,
pari-mutuel wagering and breeding law and other laws relating to
simulcasting and chapter 346 of the laws of 1990 amending the racing,
pari-mutuel wagering and breeding law and other laws relating to
simulcasting and the imposition of certain taxes, in relation to
extending certain provisions thereof; and to amend the racing, pari-
mutuel wagering and breeding law, in relation to extending certain
provisions thereof (Part OO); to amend the tax law, in relation to
vendor fees paid to vendor tracks (Part PP); to amend the tax law, in
relation to capital awards to vendor tracks (Part QQ); and to amend
the state finance law, in relation to the distribution of certain
gaming aid; and providing for the repeal of such provisions upon expi-
ration thereof (Part RR)
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 2017-2018
state fiscal year. Each component is wholly contained within a Part
identified as Parts A through RR. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes a reference to a section
"of this act", when used in connection with that particular component,
shall be deemed to mean and refer to the corresponding section of the
Part in which it is found. Section three of this act sets forth the
general effective date of this act.
PART A
S. 2009 4 A. 3009
Section 1. The alcoholic beverage control law is amended by adding a
new section 63-b to read as follows:
§ 63-B. SPECIAL LICENSE TO SELL ALCOHOLIC BEVERAGES AT RETAIL FOR
CONSUMPTION OFF THE PREMISES. 1. ANY PERSON WITH A WRITTEN AGREEMENT
WITH THE DEPARTMENT OF AGRICULTURE AND MARKETS TO OPERATE A "TASTE NY"
STORE MAY MAKE APPLICATION TO THE AUTHORITY FOR A SPECIAL LICENSE TO
SELL ALCOHOLIC BEVERAGES AT RETAIL FOR CONSUMPTION OFF THE LICENSED
PREMISES SUBJECT TO THE PROVISIONS OF SUCH WRITTEN AGREEMENT AND THOSE
SET FORTH HEREIN. NOTWITHSTANDING ANY LAW TO THE CONTRARY, NO ALCOHOLIC
BEVERAGE SHALL BE SOLD OR TASTINGS ALLOWED ON THE THRUWAY.
2. AN APPLICATION FOR A LICENSE UNDER THIS SECTION SHALL BE IN SUCH
FORM AND SHALL CONTAIN SUCH INFORMATION AS SHALL BE REQUIRED BY THE
AUTHORITY AND SHALL BE ACCOMPANIED BY A CHECK OR DRAFT IN THE AMOUNT
REQUIRED BY THIS CHAPTER.
3. SECTION FIFTY-FOUR OF THIS CHAPTER SHALL CONTROL SO FAR AS IS
APPLICABLE TO THE PROCEDURE IN CONNECTION WITH SUCH APPLICATION.
4. A LICENSE UNDER THIS SECTION SHALL BE ISSUED TO ALL ELIGIBLE APPLI-
CANTS EXCEPT FOR GOOD CAUSE SHOWN, PROVIDED, HOWEVER, THAT NO MORE THAN
TEN SUCH LICENSES SHALL BE IN EFFECT AT ANY TIME, AND THAT ALL SUCH
LICENSES SHALL BE ISSUED IN A MANNER CONSISTENT WITH FEDERAL LAW AND
REGULATIONS. SUCH LICENSE SHALL BE LIMITED TO THE PREMISES SUBJECT TO
THE WRITTEN AGREEMENT WITH THE DEPARTMENT OF AGRICULTURE AND MARKETS.
5. A LICENSE UNDER THIS SECTION SHALL NOT BE SUBJECT TO THE PROVISIONS
OF SUBDIVISIONS TWO, THREE AND SIX OF SECTION ONE HUNDRED FIVE OF THIS
CHAPTER.
6. SUBJECT TO ANY FURTHER RESTRICTION CONTAINED IN THE AGREEMENT WITH
THE DEPARTMENT OF AGRICULTURE AND MARKETS, THE HOLDER OF A LICENSE
ISSUED UNDER THIS SECTION MAY OFFER SAMPLES OF ALCOHOLIC BEVERAGES TO
CUSTOMERS TO BE CONSUMED ON THE LICENSED PREMISES UPON THE FOLLOWING
CONDITIONS:
(A) NO FEE SHALL BE CHARGED FOR ANY SAMPLE;
(B) EACH SAMPLE SHALL BE LIMITED;
(I) IN THE CASE OF BEER, WINE PRODUCTS AND CIDER, TO THREE OUNCES OR
LESS;
(II) IN THE CASE OF WINE, TO TWO OUNCES;
(III) IN THE CASE OF LIQUOR, TO ONE-QUARTER OUNCE;
(C) NO SAMPLE SHALL BE PROVIDED TO A CUSTOMER DURING THE HOURS PROHIB-
ITED BY THE PROVISIONS OF SUBDIVISION FIVE OF SECTION ONE HUNDRED SIX OF
THIS CHAPTER; AND
(D) NO CUSTOMER MAY BE PROVIDED WITH MORE THAN THREE SAMPLES IN ONE
CALENDAR DAY.
7. SUBJECT TO ANY FURTHER RESTRICTION CONTAINED IN THE AGREEMENT WITH
THE DEPARTMENT OF AGRICULTURE AND MARKETS, THE HOLDER OF A LICENSE
ISSUED UNDER THIS SECTION SHALL NOT:
(A) OFFER ANY TASTINGS OF, OR SELL, ANY BEER OR CIDER EXCEPT DURING
THE HOURS IN WHICH BEER MAY BE SOLD FOR CONSUMPTION OFF THE PREMISES IN
THE COUNTY IN WHICH THE LICENSED PREMISES IS LOCATED; AND
(B) OFFER ANY TASTINGS OF, OR SELL, ANY LIQUOR OR WINE EXCEPT DURING
THE HOURS IN WHICH LIQUOR AND WINE MAY BE SOLD FOR CONSUMPTION OFF THE
PREMISES IN THE COUNTY IN WHICH THE LICENSED PREMISES IS LOCATED.
8. IN ADDITION TO THE SALE OF ALCOHOLIC BEVERAGES, THE FOLLOWING ITEMS
MAY BE SOLD AT A PREMISES LICENSED UNDER THIS SECTION:
(A) NON-ALCOHOLIC BEVERAGES FOR CONSUMPTION OFF PREMISES, INCLUDING
BUT NOT LIMITED TO BOTTLED WATER, JUICE AND SODA BEVERAGES;
(B) FOOD ITEMS GROWN OR PRODUCED IN THIS STATE NOT SPECIFICALLY
PREPARED FOR IMMEDIATE CONSUMPTION UPON THE PREMISES; AND
S. 2009 5 A. 3009
(C) SOUVENIR ITEMS, WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO
ARTWORK, CRAFTS, CLOTHING, AGRICULTURAL PRODUCTS AND ANY OTHER ARTICLES
WHICH CAN BE CONSTRUED TO PROPAGATE TOURISM WITHIN THE STATE.
9. A LICENSE ISSUED UNDER THIS SECTION SHALL BE EFFECTIVE FOR THREE
YEARS AT THREE TIMES THE ANNUAL FEE.
§ 2. Subdivision 3 of section 17 of the alcoholic beverage control
law, as amended by section 3 of chapter 297 of the laws of 2016, is
amended to read as follows:
3. To revoke, cancel or suspend for cause any license or permit issued
under this chapter and/or to impose a civil penalty for cause against
any holder of a license or permit issued pursuant to this chapter. Any
civil penalty so imposed shall not exceed the sum of ten thousand
dollars as against the holder of any retail permit issued pursuant to
sections ninety-five, ninety-seven, ninety-eight, ninety-nine-d, and
paragraph f of subdivision one of section ninety-nine-b of this chapter,
and as against the holder of any retail license issued pursuant to
sections fifty-three-a, fifty-four, fifty-four-a, fifty-five, fifty-
five-a, sixty-three, SIXTY-THREE-B, sixty-four, sixty-four-a, sixty-
four-b, sixty-four-c, seventy-six-f, seventy-nine, eighty-one and eight-
y-one-a of this chapter, and the sum of thirty thousand dollars as
against the holder of a license issued pursuant to sections fifty-three,
sixty-one-a, sixty-one-b, seventy-six, seventy-six-a, and seventy-eight
of this chapter, provided that the civil penalty against the holder of a
wholesale license issued pursuant to section fifty-three of this chapter
shall not exceed the sum of ten thousand dollars where that licensee
violates provisions of this chapter during the course of the sale of
beer at retail to a person for consumption at home, and the sum of one
hundred thousand dollars as against the holder of any license issued
pursuant to sections fifty-one, sixty-one, and sixty-two of this chap-
ter. Any civil penalty so imposed shall be in addition to and separate
and apart from the terms and provisions of the bond required pursuant to
section one hundred twelve of this chapter. Provided that no appeal is
pending on the imposition of such civil penalty, in the event such civil
penalty imposed by the division remains unpaid, in whole or in part,
more than forty-five days after written demand for payment has been sent
by first class mail to the address of the licensed premises, a notice of
impending default judgment shall be sent by first class mail to the
licensed premises and by first class mail to the last known home address
of the person who signed the most recent license application. The notice
of impending default judgment shall advise the licensee: (a) that a
civil penalty was imposed on the licensee; (b) the date the penalty was
imposed; (c) the amount of the civil penalty; (d) the amount of the
civil penalty that remains unpaid as of the date of the notice; (e) the
violations for which the civil penalty was imposed; and (f) that a judg-
ment by default will be entered in the supreme court of the county in
which the licensed premises are located, or other court of civil juris-
diction or any other place provided for the entry of civil judgments
within the state of New York unless the division receives full payment
of all civil penalties due within twenty days of the date of the notice
of impending default judgment. If full payment shall not have been
received by the division within thirty days of mailing of the notice of
impending default judgment, the division shall proceed to enter with
such court a statement of the default judgment containing the amount of
the penalty or penalties remaining due and unpaid, along with proof of
mailing of the notice of impending default judgment. The filing of such
judgment shall have the full force and effect of a default judgment duly
S. 2009 6 A. 3009
docketed with such court pursuant to the civil practice law and rules
and shall in all respects be governed by that chapter and may be
enforced in the same manner and with the same effect as that provided by
law in respect to execution issued against property upon judgments of a
court of record. A judgment entered pursuant to this subdivision shall
remain in full force and effect for eight years notwithstanding any
other provision of law.
§ 3. Subdivision 3 of section 17 of the alcoholic beverage control
law, as amended by section 4 of chapter 297 of the laws of 2016, is
amended to read as follows:
3. To revoke, cancel or suspend for cause any license or permit issued
under this chapter and/or to impose a civil penalty for cause against
any holder of a license or permit issued pursuant to this chapter. Any
civil penalty so imposed shall not exceed the sum of ten thousand
dollars as against the holder of any retail permit issued pursuant to
sections ninety-five, ninety-seven, ninety-eight, ninety-nine-d, and
paragraph f of subdivision one of section ninety-nine-b of this chapter,
and as against the holder of any retail license issued pursuant to
sections fifty-three-a, fifty-four, fifty-four-a, fifty-five, fifty-
five-a, sixty-three, SIXTY-THREE-B, sixty-four, sixty-four-a, sixty-
four-b, sixty-four-c, seventy-six-f, seventy-nine, eighty-one, and
eighty-one-a of this chapter, and the sum of thirty thousand dollars as
against the holder of a license issued pursuant to sections fifty-three,
sixty-one-a, sixty-one-b, seventy-six, seventy-six-a and seventy-eight
of this chapter, provided that the civil penalty against the holder of a
wholesale license issued pursuant to section fifty-three of this chapter
shall not exceed the sum of ten thousand dollars where that licensee
violates provisions of this chapter during the course of the sale of
beer at retail to a person for consumption at home, and the sum of one
hundred thousand dollars as against the holder of any license issued
pursuant to sections fifty-one, sixty-one and sixty-two of this chapter.
Any civil penalty so imposed shall be in addition to and separate and
apart from the terms and provisions of the bond required pursuant to
section one hundred twelve of this chapter. Provided that no appeal is
pending on the imposition of such civil penalty, in the event such civil
penalty imposed by the division remains unpaid, in whole or in part,
more than forty-five days after written demand for payment has been sent
by first class mail to the address of the licensed premises, a notice of
impending default judgment shall be sent by first class mail to the
licensed premises and by first class mail to the last known home address
of the person who signed the most recent license application. The notice
of impending default judgment shall advise the licensee: (a) that a
civil penalty was imposed on the licensee; (b) the date the penalty was
imposed; (c) the amount of the civil penalty; (d) the amount of the
civil penalty that remains unpaid as of the date of the notice; (e) the
violations for which the civil penalty was imposed; and (f) that a judg-
ment by default will be entered in the supreme court of the county in
which the licensed premises are located, or other court of civil juris-
diction, or any other place provided for the entry of civil judgments
within the state of New York unless the division receives full payment
of all civil penalties due within twenty days of the date of the notice
of impending default judgment. If full payment shall not have been
received by the division within thirty days of mailing of the notice of
impending default judgment, the division shall proceed to enter with
such court a statement of the default judgment containing the amount of
the penalty or penalties remaining due and unpaid, along with proof of
S. 2009 7 A. 3009
mailing of the notice of impending default judgment. The filing of such
judgment shall have the full force and effect of a default judgment duly
docketed with such court pursuant to the civil practice law and rules
and shall in all respects be governed by that chapter and may be
enforced in the same manner and with the same effect as that provided by
law in respect to execution issued against property upon judgments of a
court of record. A judgment entered pursuant to this subdivision shall
remain in full force and effect for eight years notwithstanding any
other provision of law.
§ 4. Subdivision 1 of section 56-a of the alcoholic beverage control
law, as amended by chapter 422 of the laws of 2016, is amended to read
as follows:
1. In addition to the annual fees provided for in this chapter, there
shall be paid to the authority with each initial application for a
license filed pursuant to section fifty-one, fifty-one-a, fifty-two,
fifty-three, fifty-eight, fifty-eight-c, fifty-eight-d, sixty-one,
sixty-two, seventy-six, seventy-seven or seventy-eight of this chapter,
a filing fee of four hundred dollars; with each initial application for
a license filed pursuant to section sixty-three, SIXTY-THREE-B, sixty-
four, sixty-four-a or sixty-four-b of this chapter, a filing fee of two
hundred dollars; with each initial application for a license filed
pursuant to section fifty-three-a, fifty-four, fifty-five, fifty-five-a,
seventy-nine, eighty-one or eighty-one-a of this chapter, a filing fee
of one hundred dollars; with each initial application for a permit filed
pursuant to section ninety-one, ninety-one-a, ninety-two, ninety-two-a,
ninety-three, ninety-three-a, if such permit is to be issued on a calen-
dar year basis, ninety-four, ninety-five, ninety-six or ninety-six-a, or
pursuant to paragraph b, c, e or j of subdivision one of section nine-
ty-nine-b of this chapter if such permit is to be issued on a calendar
year basis, or for an additional bar pursuant to subdivision four of
section one hundred of this chapter, a filing fee of twenty dollars; and
with each application for a permit under section ninety-three-a of this
chapter, other than a permit to be issued on a calendar year basis,
section ninety-seven, ninety-eight, ninety-nine, or ninety-nine-b of
this chapter, other than a permit to be issued pursuant to paragraph b,
c, e or j of subdivision one of section ninety-nine-b of this chapter on
a calendar year basis, a filing fee of ten dollars.
§ 5. Subdivision 2 of section 56-a of the alcoholic beverage control
law, as amended by chapter 422 of the laws of 2016, is amended to read
as follows:
2. In addition to the annual fees provided for in this chapter, there
shall be paid to the authority with each renewal application for a
license filed pursuant to section fifty-one, fifty-one-a, fifty-two,
fifty-three, fifty-eight, fifty-eight-c, fifty-eight-d, sixty-one,
sixty-two, seventy-six, seventy-seven or seventy-eight of this chapter,
a filing fee of one hundred dollars; with each renewal application for a
license filed pursuant to section sixty-three, SIXTY-THREE-B, sixty-
four, sixty-four-a or sixty-four-b of this chapter, a filing fee of
ninety dollars; with each renewal application for a license filed pursu-
ant to section seventy-nine, eighty-one or eighty-one-a of this chapter,
a filing fee of twenty-five dollars; and with each renewal application
for a license or permit filed pursuant to section fifty-three-a, fifty-
four, fifty-five, fifty-five-a, ninety-one, ninety-one-a, ninety-two,
ninety-two-a, ninety-three, ninety-three-a, if such permit is issued on
a calendar year basis, ninety-four, ninety-five, ninety-six or ninety-
six-a of this chapter or pursuant to paragraph b, c, e or j of subdivi-
S. 2009 8 A. 3009
sion one of section ninety-nine-b, if such permit is issued on a calen-
dar year basis, or with each renewal application for an additional bar
pursuant to subdivision four of section one hundred of this chapter, a
filing fee of thirty dollars.
§ 6. Section 66 of the alcoholic beverage control law is amended by
adding a new subdivision 11 to read as follows:
11. THE ANNUAL FEE FOR A SPECIAL LICENSE TO SELL ALCOHOLIC BEVERAGES
AT RETAIL FOR CONSUMPTION OFF THE LICENSED PREMISES SHALL BE FIVE
HUNDRED DOLLARS.
§ 7. Section 67 of the alcoholic beverage control law, as amended by
section 4 of part Z of chapter 85 of the laws of 2002, is amended to
read as follows:
§ 67. License fees, duration of licenses; fee for part of year.
Effective April first, nineteen hundred eighty-three, licenses issued
pursuant to sections sixty-one, sixty-two, sixty-three, SIXTY-THREE-B,
sixty-four, sixty-four-a and sixty-four-b of this article shall be
effective for three years at three times that annual fee[, except that,
in implementing the purposes of this section, the liquor authority shall
schedule the commencement dates, duration and expiration dates thereof
to provide for an equal cycle of license renewals issued under each such
section through the course of the fiscal year. Effective December first,
nineteen hundred ninety-eight, licenses issued pursuant to sections
sixty-four, sixty-four-a and sixty-four-b of this article shall be
effective for two years at two times that annual fee, except that, in
implementing the purposes of this section, the liquor authority shall
schedule the commencement dates, duration and expiration dates thereof
to provide for an equal cycle of license renewals issued under each such
section through the course of the fiscal year. Notwithstanding the fore-
going, commencing on December first, nineteen hundred ninety-eight and
concluding on July thirty-first, two thousand two, a licensee issued a
license pursuant to section sixty-four, sixty-four-a or sixty-four-b of
this article may elect to remit the fee for such license in equal annual
installments. Such installments shall be due on dates established by the
liquor authority and the failure of a licensee to have remitted such
annual installments after a due date shall be a violation of this chap-
ter. For licenses issued for less than the three-year licensing period,
the license fee shall be levied on a pro-rated basis]. The entire
license fee shall be due and payable at the time of application. The
liquor authority may make such rules as shall be appropriate to carry
out the purpose of this section.
§ 8. Subdivision 8 of section 100 of the alcoholic beverage control
law, as added by chapter 256 of the laws of 1978 and as renumbered by
chapter 466 of the laws of 2015, is amended to read as follows:
8. Within ten days after filing a new application to sell liquor at
retail under section sixty-three, SIXTY-THREE-B, sixty-four,
sixty-four-a or sixty-four-b of this chapter, a notice thereof, in the
form prescribed by the authority, shall be posted by the applicant in a
conspicuous place at the entrance to the proposed premises. The appli-
cant shall make reasonable efforts to insure such notice shall remain
posted throughout the pendency of the application. The provisions hereof
shall apply only where no retail liquor license has previously been
granted for the proposed premise and shall, specifically, not be appli-
cable to a proposed sale of an existing business engaged in the retail
sale of liquor. The authority may adopt such rules it may deem necessary
to carry out the purpose of this subdivision.
S. 2009 9 A. 3009
§ 9. This act shall take effect on the thirtieth day after it shall
have become a law; provided, however, that:
(a) the amendments to subdivision 3 of section 17 of the alcoholic
beverage control law made by section two of this act shall be subject to
the expiration and reversion of such section pursuant to section 4 of
chapter 118 of the laws of 2012, as amended, when upon such date the
provisions of section three of this act shall take effect; and
(b) if chapter 422 of the laws of 2016 shall not have taken effect on
or before such date then sections four and five of this act shall take
effect on the same date and in the same manner as such chapter of the
laws of 2016, takes effect.
PART B
Section 1. Section 106 of the alcoholic beverage control law is
amended by adding a new subdivision 16 to read as follows:
16. A PERSON HOLDING A RETAIL ON-PREMISES LICENSE FOR A MOVIE THEATRE,
OTHER THAN A LICENSE FOR A MOVIE THEATRE THAT MEETS THE DEFINITIONS OF
RESTAURANT AND MEALS, AND WHERE ALL SEATING IS AT TABLES WHERE MEALS ARE
SERVED, SHALL:
(A) FOR EVERY PURCHASE OF AN ALCOHOLIC BEVERAGE, REQUIRE THE PURCHASER
TO PROVIDE WRITTEN EVIDENCE OF AGE AS SET FORTH IN PARAGRAPH (B) OF
SUBDIVISION TWO OF SECTION SIXTY-FIVE-B OF THIS CHAPTER; AND
(B) ALLOW THE PURCHASE OF ONLY ONE ALCOHOLIC BEVERAGE PER TRANSACTION;
AND
(C) ONLY PERMIT THE SALE OR DELIVERY OF ALCOHOLIC BEVERAGES DIRECTLY
TO AN INDIVIDUAL HOLDING A TICKET FOR A MOTION PICTURE WITH A MOTION
PICTURE ASSOCIATION OF AMERICA RATING OF "PG-13," "R," OR "NC-17"; AND
(D) NOT COMMENCE THE SALE OF ALCOHOLIC BEVERAGES UNTIL ONE HOUR PRIOR
TO THE START OF THE FIRST MOTION PICTURE, AND CEASE ALL SALES OF ALCO-
HOLIC BEVERAGES AFTER THE CONCLUSION OF THE FINAL MOTION PICTURE.
§ 2. Subdivision 6 of section 64-a of the alcoholic beverage control
law, as amended by chapter 475 of the laws of 2011, is amended to read
as follows:
6. No special on-premises license shall be granted except for premises
in which the principal business shall be (a) the sale of food or bever-
ages at retail for consumption on the premises or (b) the operation of a
legitimate theatre, INCLUDING A MOTION PICTURE THEATRE THAT IS A BUILD-
ING OR FACILITY WHICH IS REGULARLY USED AND KEPT OPEN PRIMARILY FOR THE
EXHIBITION OF MOTION PICTURES FOR AT LEAST FIVE OUT OF SEVEN DAYS A
WEEK, OR ON A REGULAR SEASONAL BASIS OF NO LESS THAN SIX CONTIGUOUS
WEEKS, TO THE GENERAL PUBLIC WHERE ALL AUDITORIUM SEATING IS PERMANENTLY
AFFIXED TO THE FLOOR AND AT LEAST SIXTY-FIVE PERCENT OF THE MOTION
PICTURE THEATRE'S ANNUAL GROSS REVENUES IS THE COMBINED RESULT OF ADMIS-
SION REVENUE FOR THE SHOWING OF MOTION PICTURES AND THE SALE OF FOOD AND
NON-ALCOHOLIC BEVERAGES, or such other lawful adult entertainment or
recreational facility as the liquor authority, giving due regard to the
convenience of the public and the strict avoidance of sales prohibited
by this chapter, shall by regulation classify for eligibility. [Nothing
contained in this subdivision shall be deemed to authorize the issuance
of a license to a motion picture theatre, except those meeting the defi-
nition of restaurant and meals, and where all seating is at tables where
meals are served.]
§ 3. Subdivision 8 of section 64-a of the alcoholic beverage control
law, as added by chapter 531 of the laws of 1964, is amended to read as
follows:
S. 2009 10 A. 3009
8. Every special on-premises licensee shall regularly keep food avail-
able for sale to its customers for consumption on the premises. The
availability of sandwiches, soups or other foods, whether fresh, proc-
essed, pre-cooked or frozen, shall be deemed compliance with this
requirement. FOR MOTION PICTURE THEATRES LICENSED UNDER PARAGRAPH (B)
OF SUBDIVISION SIX OF THIS SECTION, FOOD THAT IS TYPICALLY FOUND IN A
MOTION PICTURE THEATRE, INCLUDING BUT NOT LIMITED TO: POPCORN, CANDY,
AND LIGHT SNACKS, SHALL BE DEEMED TO BE IN COMPLIANCE WITH THIS REQUIRE-
MENT. The licensed premises shall comply at all times with all the regu-
lations of the local department of health. Nothing contained in this
subdivision, however, shall be construed to require that any food be
sold or purchased with any liquor, nor shall any rule, regulation or
standard be promulgated or enforced requiring that the sale of food be
substantial or that the receipts of the business other than from the
sale of liquor equal any set percentage of total receipts from sales
made therein.
§ 4. Subdivision 9 of section 64-a of the alcoholic beverage control
law, as added by chapter 531 of the laws of 1964, is amended to read as
follows:
9. IN THE CASE OF A MOTION PICTURE THEATRE APPLYING FOR A LICENSE
UNDER THIS SECTION, ANY MUNICIPALITY REQUIRED TO BE NOTIFIED UNDER
SECTION ONE HUNDRED TEN-B OF THIS CHAPTER MAY EXPRESS AN OPINION WITH
RESPECT TO WHETHER THE APPLICATION SHOULD BE APPROVED, AND SUCH OPINION
MAY BE CONSIDERED IN DETERMINING WHETHER GOOD CAUSE EXISTS TO DENY ANY
SUCH APPLICATION.
10. The liquor authority may make such rules as it deems necessary to
carry out the provisions of this section.
§ 5. This act shall take effect immediately and shall expire and be
deemed repealed 3 years after such date.
PART C
Section 1. Section 54-f of the state finance law is REPEALED.
§ 2. Subsection (ggg) of section 606 of the tax law, as added by
section 1 of part E of chapter 60 of the laws of 2016, and as relettered
by section 1 of part A of chapter 73 of the laws of 2016, is amended to
read as follows:
(ggg) School tax reduction credit for residents of a city with a popu-
lation over one million. (1) For taxable years beginning after two thou-
sand fifteen, a school tax reduction credit shall be allowed to a resi-
dent individual of the state who is a resident of a city with a
population over one million, as provided below. The credit shall be
allowed against the taxes authorized by this article reduced by the
credits permitted by this article. If the credit exceeds the tax as so
reduced, the excess shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions of section six
hundred eighty-six of this article, provided however, that no interest
will be paid thereon. For purposes of this subsection, no credit shall
be granted to an individual with respect to whom a deduction under
subsection (c) of section one hundred fifty-one of the internal revenue
code is allowable to another taxpayer for the taxable year.
(2) The amount of the credit under this [paragraph] SUBSECTION shall
be determined based upon the taxpayer's income as defined in subpara-
graph (ii) of paragraph (b) of subdivision four of section four hundred
twenty-five of the real property tax law.
S. 2009 11 A. 3009
(3) For TAXABLE YEARS BEGINNING IN TWO THOUSAND SIXTEEN, THE CREDIT
SHALL BE DETERMINED AS PROVIDED IN THIS PARAGRAPH, PROVIDED THAT FOR the
purposes of this paragraph, any taxpayer under subparagraphs (A) and (B)
of this paragraph with income of more than two hundred fifty thousand
dollars shall not receive a credit.
(A) Married individuals filing joint returns and surviving spouses. In
the case of married individuals who make a single return jointly and of
a surviving spouse, the credit shall be one hundred twenty-five dollars.
(B) All others. In the case of an unmarried individual, a head of a
household or a married individual filing a separate return, the credit
shall be sixty-two dollars and fifty cents.
(4) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SIXTEEN, THE CREDIT
SHALL EQUAL THE "FIXED" AMOUNT PROVIDED BY PARAGRAPH (4-A) OF THIS
SUBSECTION PLUS THE "RATE REDUCTION" AMOUNT PROVIDED BY PARAGRAPH (4-B)
OF THIS SUBSECTION.
(4-A) THE "FIXED" AMOUNT OF THE CREDIT SHALL BE DETERMINED AS PROVIDED
IN THIS PARAGRAPH, PROVIDED THAT ANY TAXPAYER WITH INCOME OF MORE THAN
TWO HUNDRED FIFTY THOUSAND DOLLARS SHALL NOT RECEIVE SUCH AMOUNT.
(A) MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES. IN
THE CASE OF MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY AND OF
A SURVIVING SPOUSE, THE "FIXED" AMOUNT OF THE CREDIT SHALL BE ONE
HUNDRED TWENTY-FIVE DOLLARS.
(B) ALL OTHERS. IN THE CASE OF AN UNMARRIED INDIVIDUAL, A HEAD OF A
HOUSEHOLD OR A MARRIED INDIVIDUAL FILING A SEPARATE RETURN, THE "FIXED"
AMOUNT OF THE CREDIT SHALL BE SIXTY-TWO DOLLARS AND FIFTY CENTS.
(4-B) THE "RATE REDUCTION" AMOUNT OF THE CREDIT SHALL BE DETERMINED AS
PROVIDED IN THIS PARAGRAPH, PROVIDED THAT ANY TAXPAYER WITH INCOME OF
MORE THAN FIVE HUNDRED THOUSAND DOLLARS SHALL NOT RECEIVE SUCH AMOUNT.
(A) FOR MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY AND FOR A
SURVIVING SPOUSE:
IF THE CITY TAXABLE INCOME IS: THE "RATE REDUCTION" AMOUNT IS:
NOT OVER $21,600 0.171% OF THE CITY TAXABLE INCOME
OVER $21,600 BUT NOT OVER $500,000 $37 PLUS 0.228% OF EXCESS OVER
$21,600
OVER $500,000 NOT APPLICABLE
(B) FOR A HEAD OF HOUSEHOLD:
IF THE CITY TAXABLE INCOME IS: THE "RATE REDUCTION" AMOUNT IS:
NOT OVER $14,400 0.171% OF THE CITY TAXABLE INCOME
OVER $14,400 BUT NOT OVER $500,000 $25 PLUS 0.228% OF EXCESS OVER
$14,400
OVER $500,000 NOT APPLICABLE
(C) FOR AN UNMARRIED INDIVIDUAL OR A MARRIED INDIVIDUAL FILING
A SEPARATE RETURN:
IF THE CITY TAXABLE INCOME IS: THE "RATE REDUCTION" AMOUNT IS:
NOT OVER $12,000 0.171% OF THE CITY TAXABLE INCOME
OVER $12,000 BUT NOT OVER $500,000 $21 PLUS 0.228% OF EXCESS OVER
$12,000
OVER $500,000 NOT APPLICABLE
[(3)] (5) Part-year residents. If a taxpayer changes status during the
taxable year from resident to nonresident, or from nonresident to resi-
dent, the school tax reduction credit authorized by this subsection
shall be prorated according to the number of months in the period of
residence.
§ 3. Paragraphs 1, 2 and 3 of subsection (a) of section 1304 of the
tax law, as amended by section 2 of part B of chapter 59 of the laws of
2015, are amended to read as follows:
S. 2009 12 A. 3009
(1) Resident married individuals filing joint returns and resident
surviving spouses. The tax under this section for each taxable year on
the city taxable income of every city resident married individual who
makes a single return jointly with his or her spouse under subsection
(b) of section thirteen hundred six of this article and on the city
taxable income of every city resident surviving spouse shall be deter-
mined in accordance with the following tables:
(A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
IF THE CITY TAXABLE INCOME IS: THE TAX IS:
NOT OVER $21,600 2.7% OF THE CITY TAXABLE INCOME
OVER $21,600 BUT NOT $583 PLUS 3.3% OF EXCESS
OVER $45,000 OVER $21,600
OVER $45,000 BUT NOT $1,355 PLUS 3.35% OF EXCESS
OVER $90,000 OVER $45,000
OVER $90,000 $2,863 PLUS 3.4% OF EXCESS
OVER $90,000
(B) FOR TAXABLE YEAR BEGINNING AFTER TWO THOUSAND FOURTEEN
AND BEFORE TWO THOUSAND SEVENTEEN:
If the city taxable income is: The tax is:
Not over $21,600 2.55% of the city taxable income
Over $21,600 but not $551 plus 3.1% of excess
over $45,000 over $21,600
Over $45,000 but not $1,276 plus 3.15% of excess
over $90,000 over $45,000
Over $90,000 but not $2,694 plus 3.2% of excess
over $500,000 over $90,000
Over $500,000 $16,803 plus 3.4% of excess
over $500,000
[(B)] (C) For taxable years beginning after two thousand nine and
before two thousand fifteen:
If the city taxable income is: The tax is:
Not over $21,600 2.55% of the city taxable income
Over $21,600 but not $551 plus 3.1% of excess
over $45,000 over $21,600
Over $45,000 but not $1,276 plus 3.15% of excess
over $90,000 over $45,000
Over $90,000 but not $2,694 plus 3.2% of excess
over $500,000 over $90,000
Over $500,000 $15,814 plus 3.4% of excess
over $500,000
(2) Resident heads of households. The tax under this section for each
taxable year on the city taxable income of every city resident head of a
household shall be determined in accordance with the following tables:
(A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
IF THE CITY TAXABLE INCOME IS: THE TAX IS:
NOT OVER $14,400 2.7% OF THE CITY TAXABLE INCOME
OVER $14,400 BUT NOT $389 PLUS 3.3% OF EXCESS
OVER $30,000 OVER $14,400
OVER $30,000 BUT NOT $904 PLUS 3.35% OF EXCESS
S. 2009 13 A. 3009
OVER $60,000 OVER $30,000
OVER $60,000 $1,909 PLUS 3.4% OF EXCESS
OVER $60,000
(B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
TWO THOUSAND SIXTEEN:
If the city taxable income is: The tax is:
Not over $14,400 2.55% of the city taxable income
Over $14,400 but not $367 plus 3.1% of excess
over $30,000 over $14,400
Over $30,000 but not $851 plus 3.15% of excess
over $60,000 over $30,000
Over $60,000 but not $1,796 plus 3.2% of excess
over $500,000 over $60,000
Over $500,000 $16,869 plus 3.4% of excess
over $500,000
[(B)] (C) For taxable years beginning after two thousand nine and before
two thousand fifteen:
If the city taxable income is: The tax is:
Not over $14,400 2.55% of the city taxable income
Over $14,400 but not $367 plus 3.1% of excess
over $30,000 over $14,400
Over $30,000 but not $851 plus 3.15% of excess
over $60,000 over $30,000
Over $60,000 but not $1,796 plus 3.2% of excess
over $500,000 over $60,000
Over $500,000 $15,876 plus 3.4% of excess
Over $500,000
(3) Resident unmarried individuals, resident married individuals
filing separate returns and resident estates and trusts. The tax under
this section for each taxable year on the city taxable income of every
city resident individual who is not a city resident married individual
who makes a single return jointly with his or her spouse under
subsection (b) of section thirteen hundred six of this article or a city
resident head of household or a city resident surviving spouse, and on
the city taxable income of every city resident estate and trust shall be
determined in accordance with the following tables:
(A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
IF THE CITY TAXABLE INCOME IS: THE TAX IS:
NOT OVER $12,000 2.7% OF THE CITY TAXABLE INCOME
OVER $12,000 BUT NOT $324 PLUS 3.3% OF EXCESS
OVER $25,000 OVER $12,000
OVER $25,000 BUT NOT $753 PLUS 3.35% OF EXCESS
OVER $50,000 OVER $25,000
OVER $50,000 $1,591 PLUS 3.4% OF EXCESS
OVER $50,000
(B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
TWO THOUSAND SEVENTEEN:
S. 2009 14 A. 3009
If the city taxable income is: The tax is:
Not over $12,000 2.55% of the city taxable income
Over $12,000 but not $306 plus 3.1% of excess
over $25,000 over $12,000
Over $25,000 but not $709 plus 3.15% of excess
over $50,000 over $25,000
Over $50,000 but not $1,497 plus 3.2% of excess
over $500,000 over $50,000
Over $500,000 $16,891 plus 3.4%
of excess over $500,000
[(B)] (C) For taxable years beginning after two thousand nine and
before two thousand fifteen:
If the city taxable income is: The tax is:
Not over $12,000 2.55% of the city taxable income
Over $12,000 but not $306 plus 3.1% of excess
over $25,000 over $12,000
Over $25,000 but not $709 plus 3.15% of excess
over $50,000 over $25,000
Over $50,000 but not $1,497 plus 3.2% of excess
over $500,000 over $50,000
Over $500,000 $15,897 plus 3.4%
of excess over $500,000
§ 4. Paragraphs 1, 2 and 3 of subsection (a) of section 11-1701 of the
administrative code of the city of New York, as amended by section 3 of
part B of chapter 59 of the laws of 2015, are amended to read as
follows:
(1) Resident married individuals filing joint returns and resident
surviving spouses. The tax under this section for each taxable year on
the city taxable income of every city resident married individual who
makes a single return jointly with his or her spouse under subdivision
(b) of section 11-1751 of this chapter and on the city taxable income of
every city resident surviving spouse shall be determined in accordance
with the following tables:
(A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
IF THE CITY TAXABLE INCOME IS: THE TAX IS:
NOT OVER $21,600 2.7% OF THE CITY TAXABLE INCOME
OVER $21,600 BUT NOT $583 PLUS 3.3% OF EXCESS
OVER $45,000 OVER $21,600
OVER $45,000 BUT NOT $1,355 PLUS 3.35% OF EXCESS
OVER $90,000 OVER $45,000
OVER $90,000 $2,863 PLUS 3.4% OF EXCESS
OVER $90,000
(B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
TWO THOUSAND SEVENTEEN:
If the city taxable income is: The tax is:
Not over $21,600 2.55% of the city taxable income
Over $21,600 but not $551 plus 3.1% of excess
over $45,000 over $21,600
Over $45,000 but not $1,276 plus 3.15% of excess
over $90,000 over $45,000
Over $90,000 but not $2,694 plus 3.2% of excess
S. 2009 15 A. 3009
over $500,000 over $90,000
Over $500,000 $16,803 plus 3.4% of excess
over $500,000
[(B)] (C) For taxable years beginning after two thousand nine and
before two thousand fifteen:
If the city taxable income is: The tax is:
Not over $21,600 2.55% of the city taxable income
Over $21,600 but not $551 plus 3.1% of excess
over $45,000 over $21,600
Over $45,000 but not $1,276 plus 3.15% of excess
over $90,000 over $45,000
Over $90,000 but not $2,694 plus 3.2% of excess
over $500,000 over $90,000
Over $500,000 $15,814 plus 3.4% of excess
over $500,000
(2) Resident heads of households. The tax under this section for each
taxable year on the city taxable income of every city resident head of a
household shall be determined in accordance with the following tables:
(A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
IF THE CITY TAXABLE INCOME IS: THE TAX IS:
NOT OVER $14,400 2.7% OF THE CITY TAXABLE INCOME
OVER $14,400 BUT NOT $389 PLUS 3.3% OF EXCESS
OVER $30,000 OVER $14,400
OVER $30,000 BUT NOT $904 PLUS 3.35% OF EXCESS
OVER $60,000 OVER $30,000
OVER $60,000 $1,909 PLUS 3.4% OF EXCESS
OVER $60,000
(B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
TWO THOUSAND SIXTEEN:
If the city taxable income is: The tax is:
Not over $14,400 2.55% of the city taxable income
Over $14,400 but not $367 plus 3.1% of excess
over $30,000 over $14,400
Over $30,000 but not $851 plus 3.15% of excess
over $60,000 over $30,000
Over $60,000 but not $1,796 plus 3.2% of excess
over $500,000 over $60,000
Over $500,000 $16,869 plus 3.4% of excess
over $500,000
[(B)] (C) For taxable years beginning after two thousand nine and
before two thousand fifteen:
If the city taxable income is: The tax is:
Not over $14,400 2.55% of the city taxable income
Over $14,400 but not $367 plus 3.1% of excess
over $30,000 over $14,400
Over $30,000 but not $851 plus 3.15% of excess
over $60,000 over $30,000
Over $60,000 but not $1,796 plus 3.2% of excess
over $500,000 over $60,000
Over $500,000 $15,876 plus 3.4% of excess
S. 2009 16 A. 3009
over $500,000
(3) Resident unmarried individuals, resident married individuals
filing separate returns and resident estates and trusts. The tax under
this section for each taxable year on the city taxable income of every
city resident individual who is not a married individual who makes a
single return jointly with his or her spouse under subdivision (b) of
section 11-1751 of this chapter or a city resident head of a household
or a city resident surviving spouse, and on the city taxable income of
every city resident estate and trust shall be determined in accordance
with the following tables:
(A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
IF THE CITY TAXABLE INCOME IS: THE TAX IS:
NOT OVER $12,000 2.7% OF THE CITY TAXABLE INCOME
OVER $12,000 BUT NOT $324 PLUS 3.3% OF EXCESS
OVER $25,000 OVER $12,000
OVER $25,000 BUT NOT $753 PLUS 3.35% OF EXCESS
OVER $50,000 OVER $25,000
OVER $50,000 $1,591 PLUS 3.4% OF EXCESS
OVER $50,000
(B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
TWO THOUSAND SIXTEEN:
If the city taxable income is: The tax is:
Not over $12,000 2.55% of the city taxable income
Over $12,000 but not $306 plus 3.1% of excess
over $25,000 over $12,000
Over $25,000 but not $709 plus 3.15% of excess
over $50,000 over $25,000
Over $50,000 but not $1,497 plus 3.2% of excess
over $500,000 over $50,000
Over $500,000 $16,891 plus 3.4% of excess
over $500,000
[(B)] (C) For taxable years beginning after two thousand nine and
before two thousand fifteen:
If the city taxable income is: The tax is:
Not over $12,000 2.55% of the city taxable income
Over $12,000 but not $306 plus 3.1% of excess
over $25,000 over $12,000
Over $25,000 but not $709 plus 3.15% of excess
over $50,000 over $25,000
Over $50,000 but not $1,497 plus 3.2% of excess
over $500,000 over $50,000
Over $500,000 $15,897 plus 3.4% of excess
over $500,000
§ 5. Notwithstanding any provision of law to the contrary, the method
of determining the amount to be deducted and withheld from wages on
account of taxes imposed by or pursuant to the authority of article 30
of the tax law in connection with the implementation of the provisions
of this act shall be prescribed by the commissioner of taxation and
finance with due consideration to the effect such withholding tables and
methods would have on the receipt and amount of revenue. The commission-
S. 2009 17 A. 3009
er of taxation and finance shall adjust such withholding tables and
methods in regard to taxable years beginning in 2017 and after in such
manner as to result, so far as practicable, in withholding from an
employee's wages an amount substantially equivalent to the tax reason-
ably estimated to be due for such taxable years as a result of the
provisions of this act. Provided, however, for tax year 2017 the with-
holding tables shall reflect as accurately as practicable the full
amount of tax year 2017 liability so that such amount is withheld by
December 31, 2017. In carrying out his or her duties and responsibil-
ities under this section, the commissioner of taxation and finance may
prescribe a similar procedure with respect to the taxes required to be
deducted and withheld by local laws imposing taxes pursuant to the
authority of articles 30, 30-A and 30-B of the tax law, the provisions
of any other law in relation to such a procedure to the contrary
notwithstanding.
§ 6. 1. Notwithstanding any provision of law to the contrary, no addi-
tion to tax shall be imposed for failure to pay the estimated tax in
subsection (c) of section 685 of the tax law and subdivision (c) of
section 11-1785 of the administrative code of the city of New York with
respect to any underpayment of a required installment due prior to, or
within thirty days of, the effective date of this act to the extent that
such underpayment was created or increased by the amendments made by
this act, provided, however, that the taxpayer remits the amount of any
underpayment prior to or with his or her next quarterly estimated tax
payment.
2. The commissioner of taxation and finance shall take steps to publi-
cize the necessary adjustments to estimated tax and, to the extent
reasonably possible, to inform the taxpayer of the tax liability changes
made by this act.
§ 7. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2017.
PART D
Section 1. Subparagraph (i) of paragraph (a) of subdivision 2 of
section 1306-a of the real property tax law, as amended by section 6 of
part N of chapter 58 of the laws of 2011, is amended to read as follows:
(i) The tax savings for each parcel receiving the exemption authorized
by section four hundred twenty-five of this chapter shall be computed by
subtracting the amount actually levied against the parcel from the
amount that would have been levied if not for the exemption, provided
however, that [beginning with] FOR the two thousand eleven-two thousand
twelve THROUGH TWO THOUSAND SIXTEEN-TWO THOUSAND SEVENTEEN school [year]
YEARS, the tax savings applicable to any "portion" (which as used herein
shall mean that part of an assessing unit located within a school
district) shall not exceed the tax savings applicable to that portion in
the prior school year multiplied by one hundred two percent, with the
result rounded to the nearest dollar; AND PROVIDED FURTHER THAT BEGIN-
NING WITH THE TWO THOUSAND SEVENTEEN-TWO THOUSAND EIGHTEEN SCHOOL YEAR,
THE TAX SAVINGS APPLICABLE TO ANY PORTION SHALL NOT EXCEED THE TAX
SAVINGS FOR THE PRIOR YEAR. The tax savings attributable to the basic
and enhanced exemptions shall be calculated separately. It shall be the
responsibility of the commissioner to calculate tax savings limitations
for purposes of this subdivision.
§ 2. This act shall take effect immediately.
S. 2009 18 A. 3009
PART E
Section 1. Subparagraph (ii) of paragraph (b) of subdivision 4 of
section 425 of the real property tax law, as amended by section 3 of
part E of chapter 83 of the laws of 2002, is amended to read as follows:
(ii) The term "income" as used herein shall mean the "adjusted gross
income" for federal income tax purposes as reported on the applicant's
federal or state income tax return for the applicable income tax year,
subject to any subsequent amendments or revisions, reduced by distrib-
utions, to the extent included in federal adjusted gross income,
received from an individual retirement account and an individual retire-
ment annuity; provided that if no such return was filed for the applica-
ble income tax year, "income" shall mean the adjusted gross income that
would have been so reported if such a return had been filed. PROVIDED
FURTHER, THAT EFFECTIVE WITH EXEMPTION APPLICATIONS FOR FINAL ASSESSMENT
ROLLS TO BE COMPLETED IN TWO THOUSAND EIGHTEEN, WHERE AN INCOME-ELIGI-
BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR
MORE INDIVIDUALS WHO DID NOT FILE A RETURN FOR THE APPLICABLE INCOME TAX
YEAR, THEN IN ORDER FOR THE APPLICATION TO BE CONSIDERED COMPLETE, EACH
SUCH INDIVIDUAL MUST FILE A STATEMENT WITH THE DEPARTMENT SHOWING THE
SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT INCOME TAX YEAR, AND THE
AMOUNT OR AMOUNTS THEREOF, THAT WOULD HAVE BEEN REPORTED ON SUCH A
RETURN IF ONE HAD BEEN FILED. SUCH STATEMENT SHALL BE FILED AT SUCH
TIME, AND IN SUCH FORM AND MANNER, AS MAY BE PRESCRIBED BY THE DEPART-
MENT, AND SHALL BE SUBJECT TO THE SECRECY PROVISIONS OF THE TAX LAW TO
THE SAME EXTENT THAT A PERSONAL INCOME TAX RETURN WOULD BE. THE DEPART-
MENT SHALL MAKE SUCH FORMS AND INSTRUCTIONS AVAILABLE FOR THE FILING OF
SUCH STATEMENTS.
§ 2. Subparagraph (iv) of paragraph (b) of subdivision 4 of section
425 of the real property tax law, as amended by chapter 451 of the laws
of 2015, is amended to read as follows:
(iv) (A) Effective with applications for the enhanced exemption on
final assessment rolls to be completed in two thousand [three] EIGHTEEN,
the application form shall indicate that [the] ALL owners of the proper-
ty and any owners' spouses residing on the premises [may authorize the
assessor to] MUST have their income eligibility verified annually [ther-
eafter] by the [state] department [of taxation and finance, in lieu of
furnishing copies of the applicable income tax return or returns with
the application. If the owners of the property and any owners' spouses
residing on the premises elect to participate in this program, which
shall be known as the STAR income verification program, they] AND must
furnish their taxpayer identification numbers in order to facilitate
matching with records of the department. [Thereafter, their] THE income
eligibility OF SUCH PERSONS shall be verified annually by the
department, and the assessor shall not request income documentation from
them[, unless such department advises the assessor that they do not
satisfy the applicable income eligibility requirements, or that it is
unable to determine whether they satisfy those requirements]. All APPLI-
CANTS FOR THE ENHANCED EXEMPTION AND ALL assessing units shall be
required to participate in this program, WHICH SHALL BE KNOWN AS THE
STAR INCOME VERIFICATION PROGRAM.
(B) WHERE THE COMMISSIONER FINDS THAT THE ENHANCED EXEMPTION SHOULD BE
REPLACED WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE
TO THE ENHANCED EXEMPTION HAS BEEN EXCEEDED, HE OR SHE SHALL PROVIDE THE
PROPERTY OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS-
SIONER EVIDENCE TO THE CONTRARY. WHERE THE COMMISSIONER FINDS THAT THE
S. 2009 19 A. 3009
ENHANCED EXEMPTION SHOULD BE REMOVED OR DENIED WITHOUT BEING REPLACED
WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE TO THE
BASIC EXEMPTION HAS ALSO BEEN EXCEEDED, HE OR SHE SHALL PROVIDE THE
PROPERTY OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS-
SIONER EVIDENCE TO THE CONTRARY. IN EITHER CASE, IF THE OWNERS FAIL TO
RESPOND TO SUCH NOTICE WITHIN FORTY-FIVE DAYS FROM THE MAILING THEREOF,
OR IF THEIR RESPONSE DOES NOT SHOW TO THE COMMISSIONER'S SATISFACTION
THAT THE PROPERTY IS ELIGIBLE FOR THE EXEMPTION CLAIMED, THE COMMISSION-
ER SHALL DIRECT THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL
OF THE ASSESSMENT ROLL OR TAX ROLL TO EITHER REPLACE THE ENHANCED
EXEMPTION WITH A BASIC EXEMPTION, OR TO REMOVE OR DENY THE ENHANCED
EXEMPTION WITHOUT REPLACING IT WITH A BASIC EXEMPTION, AS APPROPRIATE.
THE COMMISSIONER SHALL FURTHER DIRECT SUCH PERSON TO CORRECT THE ROLL
ACCORDINGLY. SUCH A DIRECTIVE SHALL BE BINDING UPON THE ASSESSOR OR
OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX
ROLL, AND SHALL BE IMPLEMENTED BY SUCH PERSON WITHOUT THE NEED FOR
FURTHER DOCUMENTATION OR APPROVAL.
(C) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NEITHER AN
ASSESSOR NOR A BOARD OF ASSESSMENT REVIEW HAS THE AUTHORITY TO CONSIDER
AN OBJECTION TO THE REPLACEMENT OR REMOVAL OR DENIAL OF AN EXEMPTION
PURSUANT TO THIS SUBDIVISION, NOR MAY SUCH AN ACTION BE REVIEWED IN A
PROCEEDING TO REVIEW AN ASSESSMENT PURSUANT TO TITLE ONE OR ONE-A OF
ARTICLE SEVEN OF THIS CHAPTER. SUCH AN ACTION MAY ONLY BE CHALLENGED
BEFORE THE DEPARTMENT OF TAXATION AND FINANCE. IF A TAXPAYER IS DISSAT-
ISFIED WITH THE DEPARTMENT'S FINAL DETERMINATION, THE TAXPAYER MAY
APPEAL THAT DETERMINATION TO THE STATE BOARD OF REAL PROPERTY TAX
SERVICES IN A FORM AND MANNER TO BE PRESCRIBED BY THE COMMISSIONER. SUCH
APPEAL SHALL BE FILED WITHIN FORTY-FIVE DAYS FROM THE ISSUANCE OF THE
DEPARTMENT'S FINAL DETERMINATION. IF DISSATISFIED WITH THE STATE BOARD'S
DETERMINATION, THE TAXPAYER MAY SEEK JUDICIAL REVIEW THEREOF PURSUANT TO
ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. THE TAXPAYER
SHALL OTHERWISE HAVE NO RIGHT TO CHALLENGE SUCH FINAL DETERMINATION IN A
COURT ACTION, ADMINISTRATIVE PROCEEDING OR ANY OTHER FORM OF LEGAL
RECOURSE AGAINST THE COMMISSIONER, THE DEPARTMENT OF TAXATION AND
FINANCE, THE STATE BOARD OF REAL PROPERTY TAX SERVICES, THE ASSESSOR OR
OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX
ROLL REGARDING SUCH ACTION.
§ 3. Subparagraphs (v) and (vi) of paragraph (b) of subdivision 4 of
section 425 of the real property tax law are REPEALED.
§ 4. Paragraphs (b) and (c) of subdivision 5 of section 425 of the
real property tax law are REPEALED.
§ 5. Paragraph (d) of subdivision 5 of section 425 of the real proper-
ty tax law, as amended by section 5 of part E of chapter 83 of the laws
of 2002 and subparagraph (i) as further amended by subdivision (b) of
section 1 of part W of chapter 56 of the laws of 2010, is amended to
read as follows:
(d) Third party notice. (i) A senior citizen eligible for the enhanced
exemption may request that a notice be sent to an adult third party.
Such request shall be made on a form prescribed by the commissioner and
shall be submitted to the assessor of the assessing unit in which the
eligible taxpayer resides no later than sixty days before the first
taxable status date to which it is to apply. Such form shall provide a
section whereby the designated third party shall consent to such desig-
nation. Such request shall be effective upon receipt by the assessor.
The assessor shall maintain a list of all eligible property owners who
S. 2009 20 A. 3009
have requested notices pursuant to this paragraph AND SHALL FURNISH A
COPY OF SUCH LIST TO THE DEPARTMENT UPON REQUEST.
(ii) [In the case of a senior citizen who has not elected to partic-
ipate in the STAR income verification program, a notice shall be sent to
the designated third party at least thirty days prior to each ensuing
taxable status date; provided that no such notice need be sent in the
first year if the request was not received by the assessor at least
sixty days before the applicable taxable status date. Such notice shall
read substantially as follows:
"On behalf of (identify senior citizen or citizens), you are advised
that his, her, or their renewal application for the enhanced STAR
exemption must be filed with the assessor no later than (enter date).
You are encouraged to remind him, her, or them of that fact, and to
offer assistance if needed, although you are under no legal obligation
to do so. Your cooperation and assistance are greatly appreciated."
(iii) In the case of a senior citizen who has elected to participate
in the STAR income verification program, a] A notice shall be sent to
the designated third party whenever the assessor OR DEPARTMENT sends a
notice to the senior citizen regarding the possible removal of the
enhanced STAR exemption. WHEN THE EXEMPTION IS SUBJECT TO REMOVAL
BECAUSE THE COMMISSIONER HAS DETERMINED THAT THE INCOME ELIGIBILITY
REQUIREMENT IS NOT SATISFIED, SUCH NOTICE SHALL BE SENT TO THE THIRD
PARTY BY THE DEPARTMENT. WHEN THE EXEMPTION IS SUBJECT TO REMOVAL
BECAUSE THE ASSESSOR HAS DETERMINED THAT ANY OTHER ELIGIBILITY REQUIRE-
MENT IS NOT SATISFIED, SUCH NOTICE SHALL BE SENT TO THE THIRD PARTY BY
THE ASSESSOR. Such notice shall read substantially as follows:
"On behalf of (identify senior citizen or citizens), you are advised
that his, her, or their enhanced STAR exemption is at risk of being
removed. You are encouraged to make sure that he, she or they are aware
of that fact, and to offer assistance if needed, although you are under
no legal obligation to do so. Your cooperation and assistance are great-
ly appreciated."
[(iv)] (III) The obligation to mail such notices shall cease if the
eligible taxpayer cancels the request or ceases to qualify for the
enhanced STAR exemption.
§ 6. Paragraph (c) of subdivision 6 of section 425 of the real proper-
ty tax law is REPEALED.
§ 7. Subdivision 9-b of section 425 of the real property tax law, as
added by section 8 of part E of chapter 83 of the laws of 2002 and para-
graph (b) as amended by chapter 742 of the laws of 2005 and further
amended by subdivision (b) of section 1 of part W of chapter 56 of the
laws of 2010, is amended to read as follows:
9-b. Duration of exemption; enhanced exemption. (a) [In the case of
persons who have elected to participate in the STAR income verification
program, the] THE enhanced exemption, once granted, shall remain in
effect until discontinued in the manner provided in this section.
(b) [In the case of persons who have not elected to participate in the
STAR income verification program, the enhanced exemption shall apply for
a term of one year. To continue receiving such enhanced exemption, a
renewal application must be filed annually with the assessor on or
before the applicable taxable status date on a form prescribed by the
commissioner. Provided, however, that if a renewal application is not so
filed, the assessor shall discontinue the enhanced exemption but shall
grant the basic exemption, subject to the provisions of subdivision
eleven of this section.
S. 2009 21 A. 3009
(c) Whether or not the recipients of an enhanced STAR exemption have
elected to participate in the STAR income verification program, the] THE
assessor [may review their] SHALL REVIEW THE continued compliance OF
RECIPIENTS OF THE ENHANCED EXEMPTION with the applicable ownership and
residency requirements to the same extent as if they were receiving a
basic STAR exemption.
[(d) Notwithstanding the foregoing provisions of this subdivision, the
enhanced exemption shall be continued without a renewal application as
long as the property continues to be eligible for the senior citizens
exemption authorized by section four hundred sixty-seven of this title.]
§ 8. Section 425 of the real property tax law is amended by adding a
new subdivision 14-a to read as follows:
14-A. IMPLEMENTATION OF CERTAIN ELIGIBILITY DETERMINATIONS. WHEN A
TAXPAYER'S ELIGIBILITY FOR EXEMPTION UNDER THIS SECTION FOR A SCHOOL
YEAR IS AFFECTED BY A DETERMINATION MADE IN ACCORDANCE WITH SUBPARAGRAPH
(IV) OF PARAGRAPH (B) OF SUBDIVISION FOUR OF THIS SECTION OR PARAGRAPH
(C) OR (D) OF SUBDIVISION FOURTEEN OF THIS SECTION, AND THE DETERMI-
NATION IS MADE AFTER THE SCHOOL DISTRICT TAXES FOR THAT SCHOOL YEAR HAVE
BEEN LEVIED, THE PROVISIONS OF THIS SUBDIVISION SHALL BE APPLICABLE.
(A) IF THE DETERMINATION RESTORES OR INCREASES THE TAXPAYER'S
EXEMPTION FOR THAT SCHOOL YEAR, THE COMMISSIONER IS AUTHORIZED TO REMIT
THE EXCESS DIRECTLY TO THE PROPERTY OWNER UPON RECEIVING CONFIRMATION
THAT THE TAXPAYER'S ORIGINAL SCHOOL TAX BILL HAS BEEN PAID IN FULL. THE
AMOUNTS PAYABLE BY THE COMMISSIONER UNDER THIS PARAGRAPH SHALL BE PAID
FROM THE ACCOUNT ESTABLISHED FOR THE PAYMENT OF STAR BENEFITS TO LATE
REGISTRANTS PURSUANT TO SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVI-
SION FOURTEEN OF THIS SECTION. WHEN THE COMMISSIONER IMPLEMENTS THE
DETERMINATION IN THIS MANNER, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND
COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES, BUT NO CORRECTION SHALL
BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO
REFUND SHALL BE ISSUED BY THE SCHOOL AUTHORITIES TO THE PROPERTY OWNER
OR HIS OR HER AGENT FOR THE EXCESSIVE AMOUNT OF SCHOOL TAXES PAID FOR
THAT SCHOOL YEAR.
(B) IF THE DETERMINATION REMOVES, DENIES OR DECREASES THE TAXPAYER'S
EXEMPTION FOR THAT SCHOOL YEAR, THE COMMISSIONER IS AUTHORIZED TO
COLLECT THE SHORTFALL DIRECTLY FROM THE OWNERS OF THE PROPERTY, TOGETHER
WITH INTEREST, BY UTILIZING ANY OF THE PROCEDURES FOR COLLECTION, LEVY,
AND LIEN OF PERSONAL INCOME TAX SET FORTH IN ARTICLE TWENTY-TWO OF THE
TAX LAW, AND ANY OTHER RELEVANT PROCEDURES REFERENCED WITHIN THE
PROVISIONS OF SUCH ARTICLE. WHEN THE COMMISSIONER IMPLEMENTS THE DETER-
MINATION IN THIS MANNER, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND
COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES, BUT NO CORRECTION SHALL
BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO
CORRECTED SCHOOL TAX BILL SHALL BE SENT TO THE TAXPAYER FOR THAT SCHOOL
YEAR.
§ 9. Section 171-o of the tax law is REPEALED.
§ 10. Subparagraph (B) of paragraph 1 of subsection (eee) of section
606 of the tax law, as amended by section 8 of part A of chapter 73 of
the laws of 2016, is amended to read as follows:
(B) "Affiliated income" shall mean for purposes of the basic STAR
credit, the combined income of all of the owners of the parcel who
resided primarily thereon as of December thirty-first of the taxable
year, and of any owners' spouses residing primarily thereon as of such
date, and for purposes of the enhanced STAR credit, the combined income
of all of the owners of the parcel as of December thirty-first of the
taxable year, and of any owners' spouses residing primarily thereon as
S. 2009 22 A. 3009
of such date; provided that for both purposes the income to be so
combined shall be the "adjusted gross income" for the taxable year as
reported for federal income tax purposes, or that would be reported as
adjusted gross income if a federal income tax return were required to be
filed, reduced by distributions, to the extent included in federal
adjusted gross income, received from an individual retirement account
and an individual retirement annuity. FOR TAXABLE YEARS BEGINNING ON
AND AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN, WHERE AN INCOME-ELIGI-
BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR
MORE INDIVIDUALS WHO DID NOT FILE A RETURN PURSUANT TO SECTION SIX
HUNDRED FIFTY-ONE OF THIS ARTICLE FOR THE APPLICABLE INCOME TAX YEAR,
THEN IN ORDER TO BE ELIGIBLE FOR THE CREDIT AUTHORIZED BY THIS
SUBSECTION, EACH SUCH INDIVIDUAL MUST FILE A STATEMENT WITH THE DEPART-
MENT SHOWING THE SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT INCOME
TAX YEAR, AND THE AMOUNT OR AMOUNTS THEREOF, THAT WOULD HAVE BEEN
REPORTED ON SUCH A RETURN IF ONE HAD BEEN FILED. SUCH STATEMENT SHALL BE
FILED AT SUCH TIME, AND IN SUCH FORM AND MANNER, AS MAY BE PRESCRIBED BY
THE DEPARTMENT, AND SHALL BE SUBJECT TO THE PROVISIONS OF SECTION SIX
HUNDRED NINETY-SEVEN OF THIS ARTICLE TO THE SAME EXTENT THAT A RETURN
WOULD BE. THE DEPARTMENT SHALL MAKE SUCH FORMS AND INSTRUCTIONS AVAIL-
ABLE FOR THE FILING OF SUCH STATEMENTS. Provided further, that if the
qualified taxpayer was an owner of the property during the taxable year
but did not own it on December thirty-first of the taxable year, then
the determination as to whether the income of an individual should be
included in "affiliated income" shall be based upon the ownership and/or
residency status of that individual as of the first day of the month
during which the qualified taxpayer ceased to be an owner of the proper-
ty, rather than as of December thirty-first of the taxable year.
§ 11. No application for an enhanced exemption on a final assessment
roll to be completed in 2018 may be approved if the applicants have not
enrolled in the STAR income verification program established by subpara-
graph (iv) of paragraph (b) of subdivision 4 of section 425 of the real
property tax law as amended by section two of this act, regardless of
when the application was filed. The assessor shall notify such appli-
cants that participation in that program has become mandatory for all
applicants and that their applications cannot be approved unless they
enroll therein. The commissioner of taxation and finance shall provide a
form for assessors to use, at their option, when making this notifica-
tion.
§ 12. This act shall take effect immediately.
PART F
Section 1. Section 928-a of the real property tax law, as added by
chapter 680 of the laws of 1994, subdivision 1 as further amended by
subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010
and subdivision 2 as amended by chapter 199 of the laws of 1997, is
amended to read as follows:
§ 928-a. Partial payment of taxes. 1. (A) Notwithstanding the
provisions of any general or special law to the contrary, [the board of
supervisors or the county legislature of any county may by resolution
authorize the collecting officers in one or more of the classes of
municipal corporations described herein] EACH COLLECTING OFFICER IS
HEREBY AUTHORIZED to accept from any taxpayer at any time partial
payments for or on account of taxes, special ad valorem levies or
special assessments [in such amount or manner and apply such payments on
S. 2009 23 A. 3009
account thereof in such manner as may be prescribed by such resolution;
provided, however, that such resolution], UNLESS THE GOVERNING BODY OF
THE MUNICIPAL CORPORATION THAT EMPLOYS THE COLLECTING OFFICER HAS: (I)
PASSED A RESOLUTION DISALLOWING PARTIAL PAYMENTS OR (II) PASSED A RESOL-
UTION LIMITING THE CONDITIONS UNDER WHICH PARTIAL PAYMENTS WILL BE
ACCEPTED, IN WHICH CASE PARTIAL PAYMENTS SHALL BE ACCEPTED IN ACCORDANCE
WITH THE CONDITIONS SET FORTH IN THE RESOLUTION.
(B) SUCH RESOLUTION MAY REQUIRE A SERVICE CHARGE NOT TO EXCEED TEN
DOLLARS TO BE PAID WITH EACH PARTIAL PAYMENT. SUCH SERVICE CHARGE SHALL
BELONG TO THE MUNICIPAL CORPORATION THAT EMPLOYS THE COLLECTING OFFICER.
(C) WHERE A STATEMENT OF TAXES CONTAINS SEPARATE CHARGES FOR SEPARATE
PURPOSES, ANY PARTIAL PAYMENTS SHALL BE APPLIED PROPORTIONATELY THERETO.
(D) WHERE SCHOOL DISTRICT TAXES ARE PAYABLE TO THE COLLECTING OFFICER
OF A CITY OR TOWN THAT HAS NOT ACTED TO DISALLOW PARTIAL PAYMENTS, THE
GOVERNING BODY OF THE SCHOOL DISTRICT MAY PASS A RESOLUTION DISALLOWING
PARTIAL PAYMENTS FOR SCHOOL DISTRICT PURPOSES. IF IT HAS NOT DONE SO,
THEN THE COLLECTING OFFICER SHALL BE AUTHORIZED TO ACCEPT PARTIAL
PAYMENTS OF SCHOOL DISTRICT TAXES UNDER THE SAME CONDITIONS AS MAY APPLY
TO CITY OR TOWN TAXES.
(E) ANY RESOLUTION ADOPTED PURSUANT TO THIS SECTION shall be adopted
AT LEAST SIXTY DAYS prior to the preparation and delivery of the tax
rolls to the appropriate collecting officers. A copy of any resolution
[enacting, amending or repealing any such partial payment program]
ADOPTED PURSUANT TO THIS SECTION, OR AMENDING OR REPEALING A RESOLUTION
ADOPTED PURSUANT TO THIS SECTION, shall be filed with the commissioner
AND, IN THE CASE OF A RESOLUTION ADOPTED BY A SCHOOL DISTRICT, WITH THE
CITY OR TOWN CLERK, no later than thirty days after the adoption there-
of.
2. [Such resolution shall apply to one or more of the following class-
es of municipal corporations: (a) all towns within the county; (b) all
cities for which the county enforces the collection of delinquent taxes;
or (c) all villages for which the county enforces the collection of
delinquent taxes. If the resolution does not specify the class or class-
es of municipal corporations to which it applies, it shall be deemed to
apply only to the towns in the county.
3.] After any partial payment authorized pursuant to this section has
been paid, interest and penalties shall be charged against the unpaid
balance only. The acceptance of a partial payment by any official pursu-
ant to this section shall not be deemed to affect any liens and powers
of any [county] MUNICIPAL CORPORATION conferred in any general or
special act, but such rights and powers shall remain in full force and
effect to enforce collection of the unpaid balance of such tax or tax
liens together with interest, penalties and other lawful charges.
3. A COLLECTING OFFICER WHO IS AUTHORIZED TO ACCEPT PARTIAL PAYMENTS
PURSUANT TO THIS SECTION MAY NOT DECLINE TO DO SO.
4. NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO AUTHORIZE A COLLECT-
ING OFFICER TO ACCEPT A PARTIAL PAYMENT AFTER THE EXPIRATION OF HIS OR
HER WARRANT, OR AT ANY OTHER TIME THAT SUCH COLLECTING OFFICER IS NOT
AUTHORIZED TO ACCEPT TAX PAYMENTS.
§ 2. This act shall take effect immediately and shall apply to the
collection of real property taxes, special ad valorem levies and special
assessments for fiscal years beginning on and after January 1, 2019.
PART G
S. 2009 24 A. 3009
Section 1. Paragraph 7 of subsection (eee) of section 606 of the tax
law, as amended by section 8 of part A of chapter 73 of the laws of
2016, is amended to read as follows:
(7) Disclosure of incomes AND OTHER INFORMATION. (A) Where the
commissioner has denied a taxpayer's claim for the credit authorized by
this subsection in whole or in part on the grounds that the affiliated
income of the parcel in question exceeds the applicable limit, the
commissioner shall have the authority to reveal to that taxpayer the
names and incomes of the other taxpayers whose incomes were included in
the computation of such affiliated income.
(B) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE NAMES
AND ADDRESSES OF INDIVIDUALS WHO HAVE APPLIED FOR OR ARE RECEIVING THE
CREDIT AUTHORIZED BY THIS SUBSECTION SHALL BE PUBLIC INFORMATION TO THE
SAME EXTENT AS THE NAMES AND ADDRESSES OF INDIVIDUALS WHO HAVE APPLIED
FOR OR ARE RECEIVING THE STAR EXEMPTION AUTHORIZED BY SECTION FOUR
HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW.
§ 2. This act shall take effect immediately.
PART H
Section 1. Subparagraph (ii) of paragraph (k) of subdivision 2 of
section 425 of the real property tax law, as amended by section 2 of
part A of chapter 405 of the laws of 1999, is amended to read as
follows:
(ii) That proportion of the assessment of such real property owned by
a cooperative apartment corporation determined by the relationship of
such real property vested in such tenant-stockholder to such entire
parcel and the buildings thereon owned by such cooperative apartment
corporation in which such tenant-stockholder resides shall be subject to
exemption from taxation pursuant to this section and any exemption so
granted shall be credited by the appropriate taxing authority against
the assessed valuation of such real property. Upon the completion of the
final assessment roll, or as soon thereafter as is practicable, the
assessor shall forward to the cooperative apartment corporation a state-
ment setting forth the exemption attributable to each eligible tenant-
stockholder. The reduction in real property taxes attributable to each
eligible tenant-stockholder shall be credited by the cooperative apart-
ment corporation against the amount of such taxes otherwise payable by
or chargeable to such tenant-stockholder. THE ASSESSOR SHALL ALSO
FORWARD TO THE COMMISSIONER, AT THE TIME AND IN THE MANNER PRESCRIBED BY
THE COMMISSIONER, A STATEMENT SETTING FORTH THE TAXABLE ASSESSED VALUE
ATTRIBUTABLE TO EACH TENANT-STOCKHOLDER, WITHOUT REGARD TO THE
EXEMPTION, AND SUCH OTHER INFORMATION AS THE COMMISSIONER SHALL DEEM
NECESSARY TO PROPERLY CALCULATE THE STAR CREDIT AUTHORIZED BY SUBSECTION
(EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW FOR THOSE TENANT-STOCK-
HOLDERS WHO QUALIFY FOR IT.
§ 2. Subparagraph (E) of paragraph 1 of subsection (eee) of section
606 of the tax law, as amended by section 8 of part A of chapter 73 of
the laws of 2016, is amended to read as follows:
(E) "Qualifying taxes" means the school district taxes that were
levied upon the taxpayer's primary residence for the associated fiscal
year that were actually paid by the taxpayer during the taxable year;
or, in the case of a city school district that is subject to article
fifty-two of the education law, the combined city and school district
taxes that were levied upon the taxpayer's primary residence for the
associated fiscal year that were actually paid by the taxpayer during
S. 2009 25 A. 3009
the taxable year. PROVIDED, HOWEVER, THAT IN THE CASE OF A COOPERATIVE
APARTMENT, "QUALIFYING TAXES" MEANS THE SCHOOL DISTRICT TAXES THAT WOULD
HAVE BEEN LEVIED UPON THE TENANT-STOCKHOLDER'S PRIMARY RESIDENCE IF IT
WERE SEPARATELY ASSESSED, AS DETERMINED BY THE COMMISSIONER BASED ON THE
STATEMENT PROVIDED BY THE ASSESSOR PURSUANT TO SUBPARAGRAPH (II) OF
PARAGRAPH (K) OF SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF
THE REAL PROPERTY TAX LAW, OR IN THE CASE OF A COOPERATIVE APARTMENT
CORPORATION THAT IS DESCRIBED IN SUBPARAGRAPH (IV) OF PARAGRAPH (K) OF
SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY
TAX LAW, ONE THIRD OF SUCH AMOUNT. In no case shall the term "qualifying
taxes" be construed to include penalties or interest.
§ 3. Subparagraph (A) of paragraph 6 of subsection (eee) of section
606 of the tax law is REPEALED.
§ 4. This act shall take effect immediately, provided that section one
of this act shall apply to final assessment rolls used to levy school
taxes for school years beginning on and after July 1, 2017, and provided
further that sections two and three of this act shall apply to taxable
years beginning on and after January 1, 2017.
PART I
Section 1. Section 2 of chapter 540 of the laws of 1992, amending the
real property tax law relating to oil and gas charges, as amended by
section 1 of part C of chapter 59 of the laws of 2014, is amended to
read as follows:
§ 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 1992; provided,
however that any charges imposed by section 593 of the real property tax
law as added by section one of this act shall first be due for values
for assessment rolls with tentative completion dates after July 1, 1992,
and provided further, that this act shall remain in full force and
effect until March 31, [2018] 2021, at which time section 593 of the
real property tax law as added by section one of this act shall be
repealed.
§ 2. This act shall take effect immediately.
PART J
Section 1. Subdivision 5 of section 81 of the state finance law, as
added by chapter 432 of the laws of 2016, is amended to read as follows:
5. Moneys shall be payable from the fund on the audit and warrant of
the comptroller on vouchers approved and certified by the commissioner
of health, for veterans' homes operated by the department of health, and
by the [commissioner of education] CHANCELLOR OF THE STATE UNIVERSITY OF
NEW YORK, for the veterans' home operated by the state university of New
York.
§ 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after November 14, 2016.
PART K
Section 1. Section 352 of the economic development law, as added by
section 1 of part MM of chapter 59 of the laws of 2010, subdivisions 7,
8, 9, 10, 12, 13, 14, 15, 16, 17, 18, 19, 20 and 21 as amended and
subdivision 11 as added by section 1 of part K of chapter 59 of the laws
of 2015, is amended to read as follows:
S. 2009 26 A. 3009
§ 352. Definitions. For the purposes of this article:
1. "Agriculture" means both agricultural production (establishments
performing the complete farm or ranch operation, such as farm owner-op-
erators, tenant farm operators, and sharecroppers) and agricultural
support (establishments that perform one or more activities associated
with farm operation, such as soil preparation, planting, harvesting, and
management, on a contract or fee basis).
2. "Back office operations" means a business function that may include
one or more of the following activities: customer service, information
technology and data processing, human resources, accounting and related
administrative functions.
3. "Benefit-cost ratio" means the following calculation: the numerator
is the sum of (i) the value of all remuneration projected to be paid for
all net new jobs during the period of participation in the program, and
(ii) the value of capital investments to be made by the business enter-
prise during the period of participation in the program, and the denomi-
nator is the amount of total tax benefits under this article that will
be used and refunded.
4. "Certificate of eligibility" means the document issued by the
department to an applicant that has completed an application to be
admitted into the excelsior jobs program and has been accepted into the
program by the department. Possession of a certificate of eligibility
does not by itself guarantee the eligibility to claim the tax credit.
5. "Certificate of tax credit" means the document issued to a partic-
ipant by the department, after the department has verified that the
participant has met all applicable eligibility criteria in this article.
The certificate shall be issued annually if such criteria are satisfied
and shall specify the exact amount of each of the tax credit components
under this article that a participant may claim, pursuant to section
three hundred fifty-five of this article, and shall specify the taxable
year in which such credit may be claimed.
6. "Distribution center" means a large scale facility involving proc-
essing, repackaging and/or movement of finished or semi-finished goods
to retail locations across a multi-state area.
7. "Entertainment company" means a corporation, partnership, limited
partnership, or other entity principally engaged in the production or
post production of (i) motion pictures, which shall include feature-
length films and television films, (ii) instructional videos, (iii)
televised commercial advertisements, (iv) animated films or cartoons,
(v) music videos, (vi) television programs, which shall include, but not
be limited to, television series, television pilots, and single tele-
vision episodes, or (vii) programs primarily intended for radio broad-
cast. "Entertainment company" shall not include an entity (i) principal-
ly engaged in the live performance of events, including, but not limited
to, theatrical productions, concerts, circuses, and sporting events,
(ii) principally engaged in the production of content intended primarily
for industrial, corporate or institutional end-users, (iii) principally
engaged in the production of fundraising films or programs, or (iv)
engaged in the production of content for which records are required
under section 2257 of title 18, United States code, to be maintained
with respect to any performer in such production.
8. "Financial services data centers or financial services customer
back office operations" means operations that manage the data or
accounts of existing customers or provide product or service information
and support to customers of financial services companies, including
banks, other lenders, securities and commodities brokers and dealers,
S. 2009 27 A. 3009
investment banks, portfolio managers, trust offices, and insurance
companies.
9. "Investment zone" shall mean an area within the state that had been
designated under paragraph (i) of subdivision (a) and subdivision (d) of
section nine hundred fifty-eight of the general municipal law that was
wholly contained within up to four distinct and separate contiguous
areas as of the date immediately preceding the date the designation of
such area expired pursuant to section nine hundred sixty-nine of the
general municipal law.
10. "LIFE SCIENCES" MEANS THE FIELDS OF BIOTECHNOLOGY, PHARMACEU-
TICALS, BIOMEDICAL TECHNOLOGIES, LIFE SYSTEMS TECHNOLOGIES, HEALTH
INFORMATICS, HEALTH ROBOTICS AND BIOMEDICAL DEVICES.
11. "LIFE SCIENCES COMPANY" MEANS A CORPORATION, PARTNERSHIP, LIMITED
PARTNERSHIP, OR OTHER ENTITY ENGAGED IN LIFE SCIENCES, AND AN ORGANIZA-
TION OR INSTITUTION THAT DEVOTES THE MAJORITY OF ITS EFFORTS IN THE
VARIOUS STAGES OF RESEARCH, DEVELOPMENT, TECHNOLOGY TRANSFER AND COMMER-
CIALIZATION RELATED TO LIFE SCIENCES.
12. "Manufacturing" means the process of working raw materials into
products suitable for use or which gives new shapes, new quality or new
combinations to matter which has already gone through some artificial
process by the use of machinery, tools, appliances, or other similar
equipment. "Manufacturing" does not include an operation that involves
only the assembly of components, provided, however, the assembly of
motor vehicles or other high value-added products shall be considered
manufacturing.
[11.] 13. "Music production" means the process of creating sound
recordings of at least eight minutes, recorded in professional sound
studios, intended for commercial release. "Music production" does not
include recording of live concerts, or recordings that are primarily
spoken word or wildlife or nature sounds, or produced for instructional
use or advertising or promotional purposes.
[12.] 14. "Net new jobs" means:
(a) jobs created in this state that (i) are new to the state,
(ii) have not been transferred from employment with another business
located in this state including from a related person in this state,
(iii) are either full-time wage-paying jobs or equivalent to a full-
time wage-paying job requiring at least thirty-five hours per week, and
(iv) are filled for more than six months; or
(b) jobs obtained by an entertainment company in this state (i) as a
result of the termination of a licensing agreement with another enter-
tainment company, (ii) that the commissioner determines to be at risk of
leaving the state as a direct result of the termination, (iii) that are
either full-time wage-paying jobs or equivalent to a full-time wage-pay-
ing job requiring at least thirty-five hours per week, and (iv) that are
filled for more than six months.
[13.] 15. "Participant" means a business entity that:
(a) has completed an application prescribed by the department to be
admitted into the program;
(b) has been issued a certificate of eligibility by the department;
(c) has demonstrated that it meets the eligibility criteria in section
three hundred fifty-three and subdivision two of section three hundred
fifty-four of this article; and
(d) has been certified as a participant by the commissioner.
[14.] 16. "Preliminary schedule of benefits" means the maximum aggre-
gate amount of each component of the tax credit that a participant in
the excelsior jobs program is eligible to receive pursuant to this arti-
S. 2009 28 A. 3009
cle. The schedule shall indicate the annual amount of each component of
the credit a participant may claim in each of its ten years of eligibil-
ity. The preliminary schedule of benefits shall be issued by the
department when the department approves the application for admission
into the program. The commissioner may amend that schedule, provided
that the commissioner complies with the credit caps in section three
hundred fifty-nine of this article.
[15.] 17. "Qualified investment" means an investment in tangible prop-
erty (including a building or a structural component of a building)
owned by a business enterprise which:
(a) is depreciable pursuant to section one hundred sixty-seven of the
internal revenue code;
(b) has a useful life of four years or more;
(c) is acquired by purchase as defined in section one hundred seven-
ty-nine (d) of the internal revenue code;
(d) has a situs in this state; and
(e) is placed in service in the state on or after the date the certif-
icate of eligibility is issued to the business enterprise.
[16.] 18. "Regionally significant project" means (a) a manufacturer
creating at least fifty net new jobs in the state and making significant
capital investment in the state; (b) a business creating at least twenty
net new jobs in agriculture in the state and making significant capital
investment in the state, (c) a financial services firm, distribution
center, or back office operation creating at least three hundred net new
jobs in the state and making significant capital investment in the
state, (d) a scientific research and development firm creating at least
twenty net new jobs in the state, and making significant capital invest-
ment in the state, (E) A LIFE SCIENCES COMPANY CREATING AT LEAST TWENTY
NET NEW JOBS IN THE STATE AND MAKING SIGNIFICANT CAPITAL INVESTMENT IN
THE STATE or [(e)] (F) an entertainment company creating or obtaining at
least two hundred net new jobs in the state and making significant capi-
tal investment in the state. Other businesses creating three hundred or
more net new jobs in the state and making significant capital investment
in the state may be considered eligible as a regionally significant
project by the commissioner as well. The commissioner shall promulgate
regulations pursuant to section three hundred fifty-six of this article
to determine what constitutes significant capital investment for each of
the project categories indicated in this subdivision and what additional
criteria a business must meet to be eligible as a regionally significant
project, including, but not limited to, whether a business exports a
substantial portion of its products or services outside of the state or
outside of a metropolitan statistical area or county within the state.
[17.] 19. "Related person" means a "related person" pursuant to
subparagraph (c) of paragraph three of subsection (b) of section four
hundred sixty-five of the internal revenue code.
[18.] 20. "Remuneration" means wages and benefits paid to an employee
by a participant in the excelsior jobs program.
[19.] 21. "Research and development expenditures" mean the expenses of
the business enterprise that are qualified research expenses under the
federal research and development credit under section forty-one of the
internal revenue code and are attributable to activities conducted in
the state. If the federal research and development credit has expired,
then the research and development expenditures shall be calculated as if
the federal research and development credit structure and definition in
effect in federal tax year two thousand nine were still in effect.
S. 2009 29 A. 3009
[20.] 22. "Scientific research and development" means conducting
research and experimental development in the physical, engineering, and
life sciences, including but not limited to agriculture, electronics,
environmental, biology, botany, biotechnology, computers, chemistry,
food, fisheries, forests, geology, health, mathematics, medicine, ocean-
ography, pharmacy, physics, veterinary, and other allied subjects. For
the purposes of this article, scientific research and development does
not include medical or veterinary laboratory testing facilities.
[21.] 23. "Software development" means the creation of coded computer
instructions or production or post-production of video games, as defined
in subdivision one-a of section six hundred eleven of the general busi-
ness law, other than those embedded and used exclusively in advertising,
promotional websites or microsites, and also includes new media as
defined by the commissioner in regulations.
§ 2. Subdivisions 1 and 3 of section 353 of the economic development
law, as amended by section 2 of part K of chapter 59 of the laws of
2015, are amended to read as follows:
1. To be a participant in the excelsior jobs program, a business enti-
ty shall operate in New York state predominantly:
(a) as a financial services data center or a financial services back
office operation;
(b) in manufacturing;
(c) in software development and new media;
(d) in scientific research and development;
(e) in agriculture;
(f) in the creation or expansion of back office operations in the
state;
(g) in a distribution center;
(h) in an industry with significant potential for private-sector
economic growth and development in this state as established by the
commissioner in regulations promulgated pursuant to this article. In
promulgating such regulations the commissioner shall include job and
investment criteria;
(i) as an entertainment company; [or]
(j) in music production; OR
(K) AS A LIFE SCIENCES COMPANY.
3. For the purposes of this article, in order to participate in the
excelsior jobs program, a business entity operating predominantly in
manufacturing must create at least ten net new jobs; a business entity
operating predominately in agriculture must create at least five net new
jobs; a business entity operating predominantly as a financial service
data center or financial services customer back office operation must
create at least fifty net new jobs; a business entity operating predomi-
nantly in scientific research and development must create at least five
net new jobs; a business entity operating predominantly in software
development must create at least five net new jobs; a business entity
creating or expanding back office operations must create at least fifty
net new jobs; a business entity operating predominately in music
production must create at least five net new jobs; a business entity
operating predominantly as an entertainment company must create or
obtain at least one hundred net new jobs; or a business entity operating
predominantly as a distribution center in the state must create at least
seventy-five net new jobs, notwithstanding subdivision five of this
section; OR A BUSINESS ENTITY OPERATING PREDOMINATELY AS A LIFE SCIENCES
COMPANY MUST CREATE AT LEAST FIVE NET NEW JOBS; or a business entity
must be a regionally significant project as defined in this article; or
S. 2009 30 A. 3009
§ 3. Subdivision 4 of section 353 of the economic development law, as
amended by section 1 of part C of chapter 68 of the laws of 2013, is
amended to read as follows:
4. A business entity operating predominantly in one of the industries
referenced in paragraphs (a) through (h) OR IN PARAGRAPH (K) of subdivi-
sion one of this section but which does not meet the job requirements of
subdivision three of this section must have at least twenty-five full-
time job equivalents unless such business is a business entity operating
predominantly in manufacturing then it must have at least ten full-time
job equivalents and must demonstrate that its benefit-cost ratio is at
least ten to one.
§ 4. Subdivision 5 of section 354 of the economic development law, as
amended by section 2 of part O of chapter 60 of the laws of 2016, is
amended to read as follows:
5. A participant may claim tax benefits commencing in the first taxa-
ble year that the business enterprise receives a certificate of tax
credit or the first taxable year listed on its preliminary schedule of
benefits, whichever is later. A participant may claim such benefits for
the next nine consecutive taxable years, provided that the participant
demonstrates to the department that it continues to satisfy the eligi-
bility criteria specified in section three hundred fifty-three of this
article and subdivision two of this section in each of those taxable
years, and provided that no tax credits may be allowed for taxable years
beginning on or after January first, two thousand [twenty-seven] THIRTY.
If, in any given year, a participant who has satisfied the eligibility
criteria specified in section three hundred fifty-three of this article
realizes job creation less than the estimated amount, the credit shall
be reduced by the proportion of actual job creation to the estimated
amount, provided the proportion is at least seventy-five percent of the
jobs estimated.
§ 5. Section 359 of the economic development law, as amended by
section 1 of part O of chapter 60 of the laws of 2016, is amended to
read as follows:
§ 359. Cap on tax credit. The total amount of tax credits listed on
certificates of tax credit issued by the commissioner for any taxable
year may not exceed the limitations set forth in this section. One-half
of any amount of tax credits not awarded for a particular taxable year
in years two thousand eleven through two thousand twenty-four may be
used by the commissioner to award tax credits in another taxable year.
Credit components in the aggregate With respect to taxable
shall not exceed: years beginning in:
$ 50 million 2011
$ 100 million 2012
$ 150 million 2013
$ 200 million 2014
$ 250 million 2015
$ 183 million 2016
$ 183 million 2017
$ 183 million 2018
$ 183 million 2019
$ 183 million 2020
$ 183 million 2021
$ 133 million 2022
$ 83 million 2023
S. 2009 31 A. 3009
$ 36 million 2024
Twenty-five percent of tax credits shall be allocated to businesses
accepted into the program under subdivision four of section three
hundred fifty-three of this article and seventy-five percent of tax
credits shall be allocated to businesses accepted into the program under
subdivision three of section three hundred fifty-three of this article.
Provided, however, if by September thirtieth of a calendar year, the
department has not allocated the full amount of credits available in
that year to either: (i) businesses accepted into the program under
subdivision four of section three hundred fifty-three of this article or
(ii) businesses accepted into the program under subdivision three of
section three hundred fifty-three of this article, the commissioner may
allocate any remaining tax credits to businesses referenced in this
paragraph as needed; provided, however, that under no circumstances may
the aggregate statutory cap for all program years be exceeded. One
hundred percent of the unawarded amounts remaining at the end of two
thousand twenty-four may be allocated in subsequent years, notwithstand-
ing the fifty percent limitation on any amounts of tax credits not
awarded in taxable years two thousand eleven through two thousand twen-
ty-four. Provided, however, no tax credits may be allowed for taxable
years beginning on or after January first, two thousand [twenty-seven]
THIRTY.
§ 6. Subdivision (b) of section 31 of the tax law, as amended by
section 3 of part O of chapter 60 of the laws of 2016, is amended to
read as follows:
(b) To be eligible for the excelsior jobs program credit, the taxpayer
shall have been issued a "certificate of tax credit" by the department
of economic development pursuant to subdivision four of section three
hundred fifty-four of the economic development law, which certificate
shall set forth the amount of each credit component that may be claimed
for the taxable year. A taxpayer may claim such credit for ten consec-
utive taxable years commencing in the first taxable year that the
taxpayer receives a certificate of tax credit or the first taxable year
listed on its preliminary schedule of benefits, whichever is later,
provided that no tax credits may be allowed for taxable years beginning
on or after January first, two thousand [twenty-seven] THIRTY. The
taxpayer shall be allowed to claim only the amount listed on the certif-
icate of tax credit for that taxable year. Such certificate must be
attached to the taxpayer's return. No cost or expense paid or incurred
by the taxpayer shall be the basis for more than one component of this
credit or any other tax credit, except as provided in section three
hundred fifty-five of the economic development law.
§ 7. The tax law is amended by adding a new section 43 to read as
follows:
§ 43. LIFE SCIENCES TAX CREDITS. (A) LIFE SCIENCES RESEARCH AND DEVEL-
OPMENT TAX CREDIT. (1) ALLOWANCE OF CREDIT. (I) A TAXPAYER THAT IS A
QUALIFIED LIFE SCIENCES COMPANY, OR THAT IS A SOLE PROPRIETOR OF OR A
PARTNER IN A PARTNERSHIP THAT IS A QUALIFIED LIFE SCIENCES COMPANY OR A
SHAREHOLDER OF A NEW YORK S CORPORATION THAT IS A QUALIFIED LIFE
SCIENCES COMPANY, AND IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-
TWO OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSU-
ANT TO THE PROVISIONS REFERRED TO IN SUBDIVISION (E) OF THIS SECTION,
FOR A PERIOD OF FIVE YEARS, AS PROVIDED IN CLAUSE (B) OF SUBPARAGRAPH
(II) OF THIS PARAGRAPH, TO BE COMPUTED AS PROVIDED IN THIS SUBDIVISION.
S. 2009 32 A. 3009
SUCH CREDIT MAY BE CLAIMED IN THE TAXABLE YEAR SPECIFIED ON THE CERTIF-
ICATE OF TAX CREDIT ISSUED TO THE QUALIFIED LIFE SCIENCES COMPANY.
(II)(A) FOR A QUALIFIED LIFE SCIENCES COMPANY THAT EMPLOYS TEN OR MORE
PERSONS DURING THE TAXABLE YEAR, THE AMOUNT OF THE CREDIT SHALL BE EQUAL
TO FIFTEEN PERCENT OF SUCH QUALIFIED LIFE SCIENCES COMPANY'S RESEARCH
AND DEVELOPMENT EXPENDITURES IN THIS STATE FOR THE TAXABLE YEAR. FOR A
QUALIFIED LIFE SCIENCES COMPANY THAT EMPLOYS LESS THAN TEN PERSONS
DURING THE TAXABLE YEAR, THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO
TWENTY PERCENT OF SUCH QUALIFIED LIFE SCIENCES COMPANY'S RESEARCH AND
DEVELOPMENT EXPENDITURES IN THIS STATE FOR THE TAXABLE YEAR.
(B) THE CREDIT SHALL BE ALLOWED ONLY WITH RESPECT TO THE FIRST TAXABLE
YEAR DURING WHICH THE CRITERIA SET FORTH IN THIS PARAGRAPH ARE SATIS-
FIED, AND WITH RESPECT TO EACH OF THE FOUR TAXABLE YEARS NEXT FOLLOWING
(BUT ONLY, WITH RESPECT TO EACH OF SUCH YEARS, IF SUCH CRITERIA ARE
SATISFIED). SUBSEQUENT CERTIFICATIONS OF THE LIFE SCIENCES COMPANY BY
THE DEPARTMENT OF ECONOMIC DEVELOPMENT PURSUANT TO THIS SUBDIVISION
SHALL NOT EXTEND THE FIVE TAXABLE YEAR TIME LIMITATION ON THE ALLOWANCE
OF THE CREDIT SET FORTH IN THE PRECEDING SENTENCE.
(III) THE TOTAL AMOUNT OF CREDIT ALLOWABLE TO A QUALIFIED LIFE
SCIENCES COMPANY, OR, IF THE LIFE SCIENCES COMPANY IS PROPERLY INCLUDED
OR REQUIRED TO BE INCLUDED IN A COMBINED REPORT, TO THE COMBINED GROUP,
TAKEN IN THE AGGREGATE, SHALL NOT EXCEED FIVE HUNDRED THOUSAND DOLLARS.
IF THE LIFE SCIENCES COMPANY IS A PARTNER IN A PARTNERSHIP OR SHAREHOLD-
ER OF A NEW YORK S CORPORATION, THEN THE TOTAL AMOUNT OF CREDIT ALLOW-
ABLE SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT THE TOTAL AMOUNT OF
CREDIT ALLOWABLE TO ALL THE PARTNERS OR SHAREHOLDERS OF EACH SUCH ENTI-
TY, TAKEN IN THE AGGREGATE, DOES NOT EXCEED FIVE HUNDRED THOUSAND
DOLLARS.
(IV) NO RESEARCH AND DEVELOPMENT EXPENDITURES MADE BY THE LIFE
SCIENCES COMPANY AND USED EITHER AS THE BASIS FOR THE ALLOWANCE OF THE
CREDIT PROVIDED FOR PURSUANT TO THIS SUBDIVISION OR USED IN THE CALCU-
LATION OF THE CREDIT PROVIDED PURSUANT TO THIS SUBDIVISION SHALL BE USED
TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO THIS CHAPTER OR BE USED IN
THE CALCULATION OF ANY OTHER CREDIT ALLOWED PURSUANT TO THIS CHAPTER.
(2) MAXIMUM AMOUNT OF CREDITS. THE AGGREGATE AMOUNT OF TAX CREDITS
ALLOWED UNDER THIS SUBDIVISION TO TAXPAYERS SUBJECT TO TAX UNDER ARTI-
CLES NINE-A AND TWENTY-TWO OF THIS CHAPTER IN ANY TAXABLE YEAR SHALL BE
TEN MILLION DOLLARS, AND SHALL BE ALLOTTED FROM THE FUNDS AVAILABLE FOR
TAX CREDITS UNDER ARTICLE SEVENTEEN OF THE ECONOMIC DEVELOPMENT LAW.
SUCH AGGREGATE AMOUNT OF CREDITS SHALL BE ALLOCATED BY THE DEPARTMENT OF
ECONOMIC DEVELOPMENT AMONG TAXPAYERS IN ORDER OF PRIORITY BASED UPON THE
DATE OF FILING AN APPLICATION FOR ALLOCATION OF LIFE SCIENCES RESEARCH
AND DEVELOPMENT TAX CREDIT WITH SUCH DEPARTMENT. IF THE TOTAL AMOUNT OF
ALLOCATED CREDITS APPLIED FOR IN ANY PARTICULAR YEAR EXCEEDS THE AGGRE-
GATE AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SUBDIVISION,
SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR ON THE FIRST DAY
OF THE SUBSEQUENT YEAR.
(B) ANGEL INVESTOR TAX CREDIT. (1) ALLOWANCE OF CREDIT. (I) A TAXPAYER
THAT IS A QUALIFIED ANGEL INVESTOR, OR THAT IS A SOLE PROPRIETOR OF OR A
PARTNER IN A PARTNERSHIP THAT IS A QUALIFIED ANGEL INVESTOR OR A SHARE-
HOLDER OF A NEW YORK S CORPORATION THAT IS A QUALIFIED ANGEL INVESTOR,
AND IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAP-
TER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSUANT TO THE
PROVISIONS REFERRED TO IN SUBDIVISION (E) OF THIS SECTION, FOR A PERIOD
OF TEN YEARS, TO BE COMPUTED AS PROVIDED IN THIS SUBDIVISION. SUCH
S. 2009 33 A. 3009
CREDIT SHALL BE CLAIMED IN THE TAXABLE YEAR SPECIFIED ON THE CERTIFICATE
OF ANGEL INVESTMENT ISSUED TO THE QUALIFIED ANGEL INVESTOR.
(II) THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF
EACH ANGEL INVESTMENT MADE DURING THE TAXABLE YEAR.
(III) THE TOTAL AMOUNT OF CREDIT ALLOWABLE TO A QUALIFIED ANGEL INVES-
TOR, OR, IF THE QUALIFIED ANGEL INVESTOR IS PROPERLY INCLUDED OR
REQUIRED TO BE INCLUDED IN A COMBINED REPORT, TO THE COMBINED GROUP,
TAKEN IN THE AGGREGATE, SHALL NOT EXCEED TWO HUNDRED FIFTY THOUSAND
DOLLARS. IF THE ANGEL INVESTOR IS A PARTNER IN A PARTNERSHIP OR SHARE-
HOLDER OF A NEW YORK S CORPORATION, THEN THE TOTAL AMOUNT OF CREDIT
ALLOWABLE SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT THE TOTAL AMOUNT
OF CREDIT ALLOWABLE TO ALL THE PARTNERS OR SHAREHOLDERS OF EACH SUCH
ENTITY, TAKEN IN THE AGGREGATE, DOES NOT EXCEED TWO HUNDRED FIFTY THOU-
SAND DOLLARS.
(IV) NO INVESTMENT MADE BY THE TAXPAYER AND USED EITHER AS THE BASIS
FOR THE ALLOWANCE OF THE CREDIT PROVIDED FOR PURSUANT TO THIS SUBDIVI-
SION OR USED IN THE CALCULATION OF THE CREDIT PROVIDED PURSUANT TO THIS
SUBDIVISION SHALL BE USED TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO
THIS CHAPTER OR USED IN THE CALCULATION OF ANY OTHER CREDIT ALLOWED
PURSUANT TO THIS CHAPTER.
(2) RECAPTURE. (I) IF THE CERTIFICATE OF ANGEL INVESTMENT OF AN ANGEL
INVESTOR ISSUED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT UNDER THIS
SECTION IS REVOKED BY SUCH DEPARTMENT BECAUSE THE INVESTMENT MADE BY THE
ANGEL INVESTOR DOES NOT MEET THE ELIGIBILITY REQUIREMENTS SET FORTH IN
THIS SECTION AND IN REGULATION, THE AMOUNT OF CREDIT DESCRIBED IN THIS
SUBDIVISION AND CLAIMED BY SUCH ANGEL INVESTOR PRIOR TO THAT REVOCATION
SHALL BE ADDED BACK AS TAX IN THE TAXABLE YEAR IN WHICH ANY SUCH REVOCA-
TION BECOMES FINAL.
(II) WHERE A TAXPAYER SELLS, TRANSFERS OR OTHERWISE DISPOSES OF CORPO-
RATE STOCK, A PARTNERSHIP INTEREST OR OTHER OWNERSHIP INTEREST ARISING
FROM THE MAKING OF AN ANGEL INVESTMENT THAT WAS THE BASIS, IN WHOLE OR
IN PART, FOR THE ALLOWANCE OF THE CREDIT PROVIDED FOR UNDER THIS SUBDI-
VISION, OR WHERE AN INVESTMENT THAT WAS THE BASIS FOR SUCH ALLOWANCE IS,
IN WHOLE OR IN PART, RECOVERED BY SUCH TAXPAYER, AND SUCH DISPOSITION OR
RECOVERY OCCURS DURING THE TAXABLE YEAR OR WITHIN FORTY-EIGHT MONTHS
FROM THE CLOSE OF THE TAXABLE YEAR WITH RESPECT TO WHICH SUCH CREDIT IS
ALLOWED, THE TAXPAYER SHALL ADD BACK AS TAX, WITH RESPECT TO THE TAXABLE
YEAR IN WHICH THE DISPOSITION OR RECOVERY DESCRIBED ABOVE OCCURRED, THE
AMOUNT OF THE CREDIT ORIGINALLY CLAIMED BY THE TAXPAYER.
(3) MAXIMUM AMOUNT OF CREDITS. THE AGGREGATE AMOUNT OF TAX CREDITS
ALLOWED UNDER THIS SUBDIVISION TO TAXPAYERS SUBJECT TO TAX UNDER ARTI-
CLES NINE-A AND TWENTY-TWO OF THIS CHAPTER IN ANY TAXABLE YEAR SHALL BE
FIVE MILLION DOLLARS. SUCH AGGREGATE AMOUNT OF CREDITS SHALL BE ALLO-
CATED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT AMONG TAXPAYERS IN ORDER
OF PRIORITY BASED UPON THE DATE OF FILING AN APPLICATION FOR ALLOCATION
OF ANGEL INVESTOR TAX CREDIT WITH SUCH DEPARTMENT. IF THE TOTAL AMOUNT
OF ALLOCATED CREDITS APPLIED FOR IN ANY PARTICULAR YEAR EXCEEDS THE
AGGREGATE AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SUBDI-
VISION, SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR ON THE
FIRST DAY OF THE SUBSEQUENT YEAR.
(C) DEFINITIONS. AS USED IN THIS SECTION THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
(1) "ANGEL INVESTMENT" MEANS AN INVESTMENT IN THE FORM OF A CONTRIB-
UTION TO THE CAPITAL OF THE QUALIFIED LIFE SCIENCES COMPANY, PROVIDED
THAT SUCH INVESTMENT IS AT RISK AND IS NOT SECURED OR GUARANTEED. AN
"ANGEL INVESTMENT" DOES NOT INCLUDE ANY LOANS, OR INVESTMENTS IN HEDGE
S. 2009 34 A. 3009
FUNDS OR COMMODITY FUNDS WITH INSTITUTIONAL INVESTORS OR WITH INVEST-
MENTS IN A BUSINESS INVOLVED IN RETAIL, REAL ESTATE, PROFESSIONAL
SERVICES, GAMING OR FINANCIAL SERVICES.
(2) "ANGEL INVESTOR" MEANS AN ACCREDITED INVESTOR, AS DEFINED BY THE
UNITED STATE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO SECTION
SEVENTY-SEVEN-B OF TITLE FIFTEEN OF THE UNITED STATES CODE, OR A NETWORK
OF ACCREDITED INVESTORS, THAT REVIEWS NEW OR PROPOSED BUSINESSES FOR
POTENTIAL INVESTMENT AND THAT MAY SEEK ACTIVE INVOLVEMENT, SUCH AS
CONSULTING AND MENTORING, IN A LIFE SCIENCES COMPANY. "ANGEL INVESTOR"
DOES NOT INCLUDE A PERSON CONTROLLING, DIRECTLY OR INDIRECTLY, FIFTY
PERCENT OR MORE OF THE LIFE SCIENCES COMPANY INVESTED IN BY THE ANGEL
INVESTOR OR WHO IS INVOLVED IN THE LIFE SCIENCES COMPANY IN A FULL-TIME
PROFESSIONAL CAPACITY, AND DOES NOT INCLUDE A CORPORATION OF WHICH SUCH
LIFE SCIENCES COMPANY IS A DIRECT OR INDIRECT SUBSIDIARY, AS DEFINED IN
SECTION TWO HUNDRED EIGHT OF THIS CHAPTER.
(3) "CERTIFICATE OF ANGEL INVESTMENT" MEANS THE DOCUMENT ISSUED TO A
QUALIFIED ANGEL INVESTOR BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT FOR
EACH ANGEL INVESTMENT MADE BY THE QUALIFIED ANGEL INVESTOR, AFTER THE
DEPARTMENT OR ECONOMIC DEVELOPMENT HAS VERIFIED THAT SUCH ANGEL INVESTOR
HAS MET ALL APPLICABLE CRITERIA IN THIS SECTION TO BE ELIGIBLE FOR THE
ANGEL INVESTOR TAX CREDIT ALLOWED UNDER SUBDIVISION (B) OF THIS SECTION,
INCLUDING BUT NOT LIMITED TO CERTIFYING THAT THE LIFE SCIENCES COMPANY
IN WHICH THE ANGEL INVESTOR HAS MADE SUCH INVESTMENT IS A QUALIFIED LIFE
SCIENCES COMPANY. THE CERTIFICATE SHALL BE ISSUED ANNUALLY IF SUCH
CRITERIA ARE SATISFIED AND SHALL SPECIFY THE EXACT AMOUNT OF EACH ANGEL
INVESTMENT MADE BY THE ANGEL INVESTOR AND THE AMOUNT OF THE TAX CREDIT
THAT MAY BE CLAIMED BY SUCH ANGEL INVESTOR, PURSUANT TO SUBDIVISION (B)
OF THIS SECTION, AND SHALL SPECIFY THE TAXABLE YEAR IN WHICH SUCH CREDIT
MAY BE CLAIMED.
(4) "CERTIFICATE OF TAX CREDIT" MEANS THE DOCUMENT ISSUED TO A QUALI-
FIED LIFE SCIENCES COMPANY BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT,
AFTER THE DEPARTMENT OF ECONOMIC DEVELOPMENT HAS VERIFIED THAT SUCH LIFE
SCIENCES COMPANY HAS MET ALL APPLICABLE CRITERIA IN THIS SECTION TO BE
ELIGIBLE FOR THE LIFE SCIENCES RESEARCH AND DEVELOPMENT TAX CREDIT
ALLOWED UNDER SUBDIVISION (A) OF THIS SECTION, INCLUDING BUT NOT LIMITED
TO VERIFYING THAT THE LIFE SCIENCES COMPANY IS A NEW BUSINESS. THE
CERTIFICATE SHALL BE ISSUED ANNUALLY IF SUCH CRITERIA ARE SATISFIED AND
SHALL SPECIFY THE EXACT AMOUNT OF THE LIFE SCIENCES RESEARCH AND DEVEL-
OPMENT TAX CREDIT THAT MAY BE CLAIMED BY SUCH QUALIFIED LIFE SCIENCES
COMPANY, PURSUANT TO SUBDIVISION (A) OF THIS SECTION, AND SHALL SPECIFY
THE TAXABLE YEAR IN WHICH SUCH CREDIT MAY BE CLAIMED.
(5) "NEW BUSINESS" MEANS ANY BUSINESS THAT QUALIFIES AS A NEW BUSINESS
UNDER EITHER PARAGRAPH (F) OF SUBDIVISION ONE OF SECTION TWO HUNDRED
TEN-B OR PARAGRAPH TEN OF SUBSECTION ONE OF SECTION SIX HUNDRED SIX OF
THIS CHAPTER.
(6) "QUALIFIED ANGEL INVESTOR" MEANS AN ANGEL INVESTOR CERTIFIED BY
THE DEPARTMENT OF ECONOMIC DEVELOPMENT AS AN ANGEL INVESTOR.
(7) "QUALIFIED LIFE SCIENCES COMPANY" MEANS A LIFE SCIENCES COMPANY,
AS DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED FIFTY-TWO OF
THE ECONOMIC DEVELOPMENT LAW, THAT HAS BEEN CERTIFIED BY THE DEPARTMENT
OF ECONOMIC DEVELOPMENT AS A LIFE SCIENCES COMPANY AND IS A NEW BUSI-
NESS. PROVIDED THAT, FOR PURPOSES OF THE ANGEL INVESTOR TAX CREDIT
PROVIDED PURSUANT TO SUBDIVISION (B) OF THIS SECTION, A QUALIFIED LIFE
SCIENCES COMPANY SHALL AT THE TIME THAT THE ANGEL INVESTOR MAKES AN
INITIAL ANGEL INVESTMENT IN SUCH LIFE SCIENCES COMPANY EMPLOY TWENTY OR
FEWER PERSONS DURING THE TAXABLE YEAR AND SHALL HAVE HAD, DURING THE
S. 2009 35 A. 3009
IMMEDIATELY PRECEDING TAXABLE YEAR, GROSS RECEIPTS OF NOT GREATER THAN
FIVE HUNDRED THOUSAND DOLLARS. PROVIDED HOWEVER, FOR PURPOSES OF THE
CREDITS AUTHORIZED UNDER THIS SECTION, THE DEPARTMENT OF ECONOMIC DEVEL-
OPMENT SHALL NOT CERTIFY AS A LIFE SCIENCES COMPANY ANY CORPORATION,
PARTNERSHIP, LIMITED PARTNERSHIP, OR OTHER ENTITY THAT HAS BEEN WITHIN
THE IMMEDIATELY PRECEDING SIXTY MONTHS A RELATED PERSON TO AN ENTITY
THAT IS A LIFE SCIENCES COMPANY OR AN ENTITY THAT IS ENGAGED IN SCIEN-
TIFIC RESEARCH AND DEVELOPMENT AS DEFINED IN SUBDIVISION TWENTY-TWO OF
SECTION THREE HUNDRED FIFTY-TWO OF THE ECONOMIC DEVELOPMENT LAW.
(8) "RESEARCH AND DEVELOPMENT EXPENDITURES" MEANS QUALIFIED RESEARCH
EXPENSES AS DEFINED IN SUBSECTION (B) OF SECTION 41 OF THE INTERNAL
REVENUE CODE BUT EXCLUDING WAGES, PROVIDED, HOWEVER, THAT SUCH QUALIFIED
RESEARCH EXPENSES SHALL NOT INCLUDE AMOUNTS UNDER SUBPARAGRAPH (B) OF
PARAGRAPH 1 OF SUBSECTION (B) OF SECTION 41 OF THE INTERNAL REVENUE CODE
AND AS FURTHER DESCRIBED IN PARAGRAPH 3 OF SUBSECTION (B) OF SECTION 41
OF THE INTERNAL REVENUE CODE. IF SECTION 41 OF THE INTERNAL REVENUE CODE
HAS EXPIRED, THEN THE RESEARCH AND DEVELOPMENT EXPENSES SHALL BE CALCU-
LATED AS IF THE FEDERAL RESEARCH AND DEVELOPMENT CREDIT STRUCTURE AND
DEFINITION IN EFFECT IN SECTION 41 IN FEDERAL TAX YEAR TWO THOUSAND NINE
WERE STILL IN EFFECT.
(9) "RELATED PERSON" MEANS A RELATED PERSON AS DEFINED IN SUBPARAGRAPH
(C) OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION 465 OF THE INTERNAL
REVENUE CODE. FOR THIS PURPOSE, A "RELATED PERSON" SHALL INCLUDE AN
ENTITY THAT WOULD HAVE QUALIFIED AS A "RELATED PERSON" IF IT HAD NOT
BEEN DISSOLVED, LIQUIDATED, MERGED WITH ANOTHER ENTITY OR OTHERWISE
CEASED TO EXIST OR OPERATE.
(D)(1) FOR PURPOSES OF THIS SECTION, IN ORDER TO BE ELIGIBLE FOR THE
LIFE SCIENCES RESEARCH AND DEVELOPMENT TAX CREDIT ALLOWED UNDER SUBDIVI-
SION (A) OF THIS SECTION, A LIFE SCIENCES COMPANY MUST BE ISSUED A
CERTIFICATE OF TAX CREDIT BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT.
THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL VERIFY THAT SUCH LIFE
SCIENCES COMPANY HAS MET ALL APPLICABLE ELIGIBILITY CRITERIA IN THIS
SECTION BEFORE ISSUING A CERTIFICATE OF TAX CREDIT, INCLUDING BUT NOT
LIMITED TO VERIFYING THAT THE LIFE SCIENCES COMPANY IS A NEW BUSINESS.
(2) FOR PURPOSES OF THIS SECTION, IN ORDER TO BE ELIGIBLE FOR THE
ANGEL INVESTOR TAX CREDIT ALLOWED UNDER SUBDIVISION (B) OF THIS SECTION,
AN ANGEL INVESTOR MUST BE ISSUED A CERTIFICATE OF ANGEL INVESTMENT BY
THE DEPARTMENT OF ECONOMIC DEVELOPMENT FOR EACH ANGEL INVESTMENT FOR
WHICH THE CREDIT IS CLAIMED. THE DEPARTMENT OF ECONOMIC DEVELOPMENT
SHALL VERIFY THAT SUCH ANGEL INVESTOR HAS MET ALL APPLICABLE ELIGIBILITY
CRITERIA IN THIS SECTION BEFORE ISSUING A CERTIFICATE OF ANGEL INVEST-
MENT, INCLUDING BUT NOT LIMITED TO CERTIFYING THAT THE LIFE SCIENCES
COMPANY IN WHICH THE ANGEL INVESTOR HAS MADE SUCH INVESTMENT IS A QUALI-
FIED LIFE SCIENCES COMPANY.
(3) THE COMMISSIONER OF ECONOMIC DEVELOPMENT, AFTER CONSULTING WITH
THE COMMISSIONER, SHALL PROMULGATE REGULATIONS BY OCTOBER THIRTY-FIRST,
TWO THOUSAND SEVENTEEN TO ESTABLISH PROCEDURES FOR THE ALLOCATION OF TAX
CREDITS ALLOWED UNDER THIS SECTION. SUCH RULES AND REGULATIONS SHALL
INCLUDE PROVISIONS DESCRIBING THE APPLICATION PROCESS FOR EACH CREDIT,
THE DUE DATES FOR SUCH APPLICATIONS, THE ELIGIBILITY STANDARDS FOR QUAL-
IFIED LIFE SCIENCES COMPANIES, THE STANDARDS WHICH SHALL BE USED TO
EVALUATE THE APPLICATIONS, THE DOCUMENTATION THAT WILL BE PROVIDED TO
TAXPAYERS TO SUBSTANTIATE TO THE DEPARTMENT THE AMOUNT OF TAX CREDITS
ALLOCATED TO SUCH TAXPAYERS, AND SUCH OTHER PROVISIONS AS DEEMED NECES-
SARY AND APPROPRIATE. NOTWITHSTANDING ANY OTHER PROVISIONS TO THE
CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, SUCH RULES AND REGU-
S. 2009 36 A. 3009
LATIONS MAY BE ADOPTED ON AN EMERGENCY BASIS IF NECESSARY TO MEET SUCH
OCTOBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN DEADLINE.
(E) CROSS-REFERENCES. FOR APPLICATION OF THE CREDITS PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
(1) ARTICLE 9-A: SECTION 210-B: SUBDIVISION 52.
(2) ARTICLE 22: SECTION 606: SUBSECTION (HHH).
(F) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, (I) EMPLOYEES AND
OFFICERS OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPARTMENT
SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE INFORMATION
REGARDING THE CREDITS APPLIED FOR, ALLOWED, OR CLAIMED PURSUANT TO THIS
SECTION AND TAXPAYERS WHO ARE APPLYING FOR CREDITS OR WHO ARE CLAIMING
CREDITS, INCLUDING INFORMATION CONTAINED IN OR DERIVED FROM CREDIT CLAIM
FORMS SUBMITTED TO THE DEPARTMENT AND APPLICATIONS FOR CERTIFICATION
SUBMITTED TO THE DEPARTMENT OF ECONOMIC DEVELOPMENT, AND (II) THE
COMMISSIONER AND THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOP-
MENT MAY RELEASE THE NAMES AND ADDRESSES OF ANY TAXPAYER CLAIMING THESE
CREDITS AND THE AMOUNT OF THE CREDIT EARNED BY THE TAXPAYER. PROVIDED,
HOWEVER, IF A TAXPAYER CLAIMS EITHER OF THESE CREDITS BECAUSE IT IS A
MEMBER OF A LIMITED LIABILITY COMPANY OR A PARTNER IN A PARTNERSHIP,
ONLY THE AMOUNT OF CREDIT EARNED BY THE ENTITY AND NOT THE AMOUNT OF
CREDIT CLAIMED BY THE TAXPAYER MAY BE RELEASED.
(G) FOR PURPOSES OF THE CREDITS ALLOWED UNDER THIS SECTION, THE NUMBER
OF PERSONS EMPLOYED BY A QUALIFIED LIFE SCIENCES COMPANY DURING THE
TAXABLE YEAR SHALL BE DETERMINED BY ASCERTAINING THE NUMBER OF SUCH
INDIVIDUALS EMPLOYED FULL-TIME BY SUCH COMPANY, EXCLUDING GENERAL EXECU-
TIVE OFFICERS, ON THE THIRTY-FIRST DAY OF MARCH, THE THIRTIETH DAY OF
JUNE, THE THIRTIETH DAY OF SEPTEMBER AND THE THIRTY-FIRST DAY OF DECEM-
BER DURING EACH TAXABLE YEAR, BY ADDING TOGETHER THE NUMBER OF SUCH
INDIVIDUALS ASCERTAINED ON EACH OF SUCH DATES AND DIVIDING THE SUM SO
OBTAINED BY THE NUMBER OF SUCH DATES OCCURRING WITHIN SUCH TAXABLE YEAR.
AN INDIVIDUAL EMPLOYED FULL-TIME MEANS AN EMPLOYEE IN A JOB CONSISTING
OF AT LEAST THIRTY-FIVE HOURS PER WEEK, OR TWO OR MORE EMPLOYEES WHO ARE
IN JOBS THAT TOGETHER CONSTITUTE THE EQUIVALENT OF A JOB OF AT LEAST
THIRTY-FIVE HOURS PER WEEK (FULL-TIME EQUIVALENT).
§ 8. Section 210-B of the tax law is amended by adding a new subdivi-
sion 52 to read as follows:
52. LIFE SCIENCES TAX CREDITS. (A) LIFE SCIENCES RESEARCH AND DEVELOP-
MENT TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS ELIGIBLE
PURSUANT TO SUBDIVISION (A) OF SECTION FORTY-THREE OF THIS CHAPTER SHALL
BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SUBDIVISION
AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS PARAGRAPH FOR
ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN
THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO
HUNDRED TEN OF THIS ARTICLE. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF
THE CREDIT ALLOWABLE UNDER THIS PARAGRAPH FOR ANY TAXABLE YEAR REDUCES
THE TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON
THE FIXED DOLLAR MINIMUM AMOUNT, THE EXCESS SHALL BE TREATED AS AN OVER-
PAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
FURTHER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
EON.
(B) ANGEL INVESTOR TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
THAT IS ELIGIBLE PURSUANT TO SUBDIVISION (B) OF SECTION FORTY-THREE OF
S. 2009 37 A. 3009
THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN
SUCH SUBDIVISION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS PARAGRAPH FOR
ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN
THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO
HUNDRED TEN OF THIS ARTICLE. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF
THE CREDIT ALLOWABLE UNDER THIS PARAGRAPH FOR ANY TAXABLE YEAR REDUCES
THE TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON
THE FIXED DOLLAR MINIMUM AMOUNT, THE EXCESS SHALL BE TREATED AS AN OVER-
PAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
FURTHER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
EON.
§ 9. Section 606 of the tax law is amended by adding a new subsection
(hhh) to read as follows:
(HHH) LIFE SCIENCES TAX CREDITS. (1) LIFE SCIENCES RESEARCH AND
DEVELOPMENT TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WHO IS
ELIGIBLE PURSUANT TO SUBDIVISION (A) OF SECTION FORTY-THREE OF THIS
CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH
SUBDIVISION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(B) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS PARAGRAPH FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
(2) ANGEL INVESTOR TAX CREDIT. (A) A TAXPAYER WHO IS ELIGIBLE PURSUANT
TO SUBDIVISION (B) OF SECTION FORTY-THREE OF THIS CHAPTER SHALL BE
ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SUBDIVISION AGAINST
THE TAX IMPOSED BY THIS ARTICLE.
(B) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS PARAGRAPH FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
§ 10. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding two new clauses (xliii) and (xliv)
to read as follows:
(XLIII) LIFE SCIENCES RESEARCH AND AMOUNT OF CREDIT UNDER PARAGRAPH
DEVELOPMENT TAX CREDIT UNDER (A) OF SUBDIVISION FIFTY-TWO OF
PARAGRAPH ONE OF SUBSECTION (HHH) SECTION TWO HUNDRED TEN-B
(XLIV) ANGEL INVESTOR TAX AMOUNT OF CREDIT UNDER PARAGRAPH
CREDIT UNDER PARAGRAPH TWO OF (B) OF SUBDIVISION FIFTY-TWO OF
SUBSECTION (HHH) SECTION TWO HUNDRED TEN-B
§ 11. This act shall take effect immediately, and shall apply to taxa-
ble years beginning on or after January 1, 2018.
PART L
Section 1. Section 441 of the economic development law, as added by
section 1 of part O of chapter 59 of the laws of 2015, is amended to
read as follows:
§ 441. Definitions. As used in this article, the following terms shall
have the following meanings:
S. 2009 38 A. 3009
1. "Approved provider" means an entity meeting such criteria as shall
be established by the commissioner in rules and regulations promulgated
pursuant to this article, that may provide eligible training to employ-
ees of a business entity participating in the employee training incen-
tive program; provided that, for internship programs, the business enti-
ty shall be an approved provider or an approved provider in contract
with such business entity. Such criteria shall ensure that any approved
provider possess adequate credentials to provide the training described
in an application by a business entity to the commissioner to partic-
ipate in the employee training incentive program.
2. "Commissioner" means the commissioner of economic development.
3. "Eligible training" means (a) training provided by an approved
provider that is:
(i) to upgrade, retrain or improve the productivity of employees;
(ii) provided to employees [filling net new jobs, or to existing
employees] in connection with a significant capital investment by a
participating business entity;
(iii) determined by the commissioner to satisfy a business need on the
part of a participating business entity;
(iv) not designed to train or upgrade skills as required by a federal
or state entity;
(v) not training the completion of which may result in the awarding of
a license or certificate required by law in order to perform a job func-
tion; and
(vi) not culturally focused training; or
(b) an internship program in advanced technology OR LIFE SCIENCES
approved by the commissioner and provided by an approved provider, on or
after August first, two thousand fifteen, to provide employment and
experience opportunities for current students, recent graduates, and
recent members of the armed forces.
4.["Net new job" means a job created in this state that:
(a) is new to the state;
(b) has not been transferred from employment with another business
located in this state through an acquisition, merger, consolidation or
other reorganization of businesses or the acquisition of assets of
another business, and has not been transferred from employment with a
related person in this state;
(c) is either a full-time wage-paying job or equivalent to a full-time
wage-paying job requiring at least thirty-five hours per week;
(d) is filled for more than six months;
(e) is filled by a person who has received eligible training; and
(f) is comprised of tasks the performance of which required the person
filling the job to undergo eligible training.] "LIFE SCIENCES" MEANS THE
FIELD OF BIOTECHNOLOGY, PHARMACEUTICALS, BIOMEDICAL TECHNOLOGIES, LIFE
SYSTEMS TECHNOLOGIES, HEALTH INFORMATICS, HEALTH ROBOTICS OR BIOMEDICAL
DEVICES. "LIFE SCIENCES COMPANY" IS A BUSINESS ENTITY OR AN ORGANIZATION
OR INSTITUTION THAT DEVOTES THE MAJORITY OF ITS EFFORTS IN THE VARIOUS
STAGES OF RESEARCH, DEVELOPMENT, TECHNOLOGY TRANSFER AND COMMERCIALIZA-
TION RELATED TO ANY LIFE SCIENCES FIELD.
5. "Significant capital investment" means a capital investment [of at
least one million dollars] in new business processes or equipment, THE
COST OF WHICH IS EQUAL TO OR EXCEEDS TEN DOLLARS FOR EVERY ONE DOLLAR OF
TAX CREDIT ALLOWED TO AN ELIGIBLE BUSINESS ENTITY UNDER THIS PROGRAM
PURSUANT TO SUBDIVISION FIFTY OF SECTION TWO HUNDRED TEN-B OR SUBSECTION
(DDD) OF SECTION SIX HUNDRED SIX OF THE TAX LAW.
S. 2009 39 A. 3009
6. "Strategic industry" means an industry in this state, as estab-
lished by the commissioner in regulations promulgated pursuant to this
article, based upon the following criteria:
(a) shortages of workers trained to work within the industry;
(b) technological disruption in the industry, requiring significant
capital investment for existing businesses to remain competitive;
(c) the ability of businesses in the industry to relocate outside of
the state in order to attract talent;
(d) the potential to recruit minorities and women to be trained to
work in the industry in which they are traditionally underrepresented;
(e) the potential to create jobs in economically distressed areas,
which shall be based on criteria indicative of economic distress,
including poverty rates, numbers of persons receiving public assistance,
and unemployment rates; or
(f) such other criteria as shall be developed by the commissioner in
consultation with the commissioner of labor.
§ 2. Section 442 of the economic development law, as added by section
1 of part O of chapter 59 of the laws of 2015, is amended to read as
follows:
§ 442. Eligibility criteria. In order to participate in the employee
training incentive program, a business entity must satisfy the following
criteria:
1. (a) The business entity must operate in the state predominantly in
a strategic industry;
(b) The business entity must demonstrate that it is obtaining eligible
training from an approved provider;
(c) The business entity must [create at least ten net new jobs or]
make a significant capital investment in connection with the eligible
training; and
(d) The business entity must be in compliance with all worker
protection and environmental laws and regulations. In addition, the
business entity may not owe past due state taxes or local property
taxes; or
2. (a) The business entity, or an approved provider in contract with
such business entity, must be approved by the commissioner to provide
eligible training in the form of an internship program in advanced tech-
nology OR AT A LIFE SCIENCES COMPANY pursuant to paragraph (b) of subdi-
vision three of section four hundred forty-one of this article;
(b) The business entity must be located in the state;
(c) The business entity must be in compliance with all worker
protection and environmental laws and regulations. In addition, the
business entity must not have past due state taxes or local property
taxes;
(d) The internship program shall not displace regular employees;
(e) The business entity must have less than one hundred employees; and
(f) Participation of an individual in an internship program shall not
last more than a total of twelve months.
§ 3. This act shall take effect immediately.
PART M
Section 1. Paragraph 5 of subdivision (a) of section 24 of the tax
law, as amended by chapter 420 of the laws of 2016, is amended to read
as follows:
(5) For the period two thousand fifteen through two thousand [nine-
teen] TWENTY-TWO, in addition to the amount of credit established in
S. 2009 40 A. 3009
paragraph two of this subdivision, a taxpayer shall be allowed a credit
equal to the product (or pro rata share of the product, in the case of a
member of a partnership) of ten percent and the amount of wages or sala-
ries paid to individuals directly employed (excluding those employed as
writers, directors, music directors, producers and performers, including
background actors with no scripted lines) by a qualified film production
company or a qualified independent film production company for services
performed by those individuals in one of the counties specified in this
paragraph in connection with a qualified film with a minimum budget of
five hundred thousand dollars. For purposes of this additional credit,
the services must be performed in one or more of the following counties:
Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung,
Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex,
Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis,
Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga,
Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga,
Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben,
[Suffolk,] Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne,
Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant
to the authority of this paragraph shall be five million dollars each
year during the period two thousand fifteen through two thousand [nine-
teen] TWENTY-TWO of the annual allocation made available to the program
pursuant to paragraph four of subdivision (e) of this section. Such
aggregate amount of credits shall be allocated by the governor's office
for motion picture and television development among taxpayers in order
of priority based upon the date of filing an application for allocation
of film production credit with such office. If the total amount of allo-
cated credits applied for under this paragraph in any year exceeds the
aggregate amount of tax credits allowed for such year under this para-
graph, such excess shall be treated as having been applied for on the
first day of the next year. If the total amount of allocated tax credits
applied for under this paragraph at the conclusion of any year is less
than five million dollars, the remainder shall be treated as part of the
annual allocation made available to the program pursuant to paragraph
four of subdivision (e) of this section. However, in no event may the
total of the credits allocated under this paragraph and the credits
allocated under paragraph five of subdivision (a) of section thirty-one
of this article exceed five million dollars in any year during the peri-
od two thousand fifteen through two thousand [nineteen] TWENTY-TWO.
§ 2. Paragraph 4 of subdivision (e) of section 24 of the tax law, as
amended by section 1-a of part P of chapter 60 of the laws of 2016, is
amended to read as follows:
(4) Additional pool 2 - The aggregate amount of tax credits allowed in
subdivision (a) of this section shall be increased by an additional four
hundred twenty million dollars in each year starting in two thousand ten
through two thousand [nineteen] TWENTY-TWO provided however, seven
million dollars of the annual allocation shall be available for the
empire state film post production credit pursuant to section thirty-one
of this article in two thousand thirteen and two thousand fourteen and
twenty-five million dollars of the annual allocation shall be available
for the empire state film post production credit pursuant to section
thirty-one of this article in each year starting in two thousand fifteen
through two thousand [nineteen] TWENTY-TWO. This amount shall be allo-
cated by the governor's office for motion picture and television devel-
opment among taxpayers in accordance with subdivision (a) of this
section. If the commissioner of economic development determines that the
S. 2009 41 A. 3009
aggregate amount of tax credits available from additional pool 2 for the
empire state film production tax credit have been previously allocated,
and determines that the pending applications from eligible applicants
for the empire state film post production tax credit pursuant to section
thirty-one of this article is insufficient to utilize the balance of
unallocated empire state film post production tax credits from such
pool, the remainder, after such pending applications are considered,
shall be made available for allocation in the empire state film tax
credit pursuant to this section, subdivision twenty of section two
hundred ten-B and subsection (gg) of section six hundred six of this
chapter. Also, if the commissioner of economic development determines
that the aggregate amount of tax credits available from additional pool
2 for the empire state film post production tax credit have been previ-
ously allocated, and determines that the pending applications from
eligible applicants for the empire state film production tax credit
pursuant to this section is insufficient to utilize the balance of unal-
located film production tax credits from such pool, then all or part of
the remainder, after such pending applications are considered, shall be
made available for allocation for the empire state film post production
credit pursuant to this section, subdivision thirty-two of section two
hundred ten-B and subsection (qq) of section six hundred six of this
chapter. The governor's office for motion picture and television devel-
opment must notify taxpayers of their allocation year and include the
allocation year on the certificate of tax credit. Taxpayers eligible to
claim a credit must report the allocation year directly on their empire
state film production credit tax form for each year a credit is claimed
and include a copy of the certificate with their tax return. In the case
of a qualified film that receives funds from additional pool 2, no
empire state film production credit shall be claimed before the later of
the taxable year the production of the qualified film is complete, or
the taxable year immediately following the allocation year for which the
film has been allocated credit by the governor's office for motion
picture and television development.
§ 3. Paragraph 6 of subdivision (a) of section 31 of the tax law, as
amended by section 2 of part JJ of chapter 59 of the laws of 2014, is
amended to read as follows:
(6) For the period two thousand fifteen through two thousand [nine-
teen] TWENTY-TWO, in addition to the amount of credit established in
paragraph two of subdivision (a) of this section, a taxpayer shall be
allowed a credit equal to the product (or pro rata share of the product,
in the case of a member of a partnership) of ten percent and the amount
of wages or salaries paid to individuals directly employed (excluding
those employed as writers, directors, music directors, producers and
performers, including background actors with no scripted lines) for
services performed by those individuals in one of the counties specified
in this paragraph in connection with the post production work on a qual-
ified film with a minimum budget of five hundred thousand dollars at a
qualified post production facility in one of the counties listed in this
paragraph. For purposes of this additional credit, the services must be
performed in one or more of the following counties: Albany, Allegany,
Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton,
Cortland, Delaware, Erie, Essex, Franklin, Fulton, Genesee, Hamilton,
Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery,
Niagara, Oneida, Onondaga, Ontario, Orleans, Oswego, Otsego, Schenecta-
dy, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Tioga, Tompkins,
Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowed
S. 2009 42 A. 3009
pursuant to the authority of this paragraph shall be five million
dollars each year during the period two thousand fifteen through two
thousand [nineteen] TWENTY-TWO of the annual allocation made available
to the empire state film post production credit pursuant to paragraph
four of subdivision (e) of section twenty-four of this article. Such
aggregate amount of credits shall be allocated by the governor's office
for motion picture and television development among taxpayers in order
of priority based upon the date of filing an application for allocation
of post production credit with such office. If the total amount of allo-
cated credits applied for under this paragraph in any year exceeds the
aggregate amount of tax credits allowed for such year under this para-
graph, such excess shall be treated as having been applied for on the
first day of the next year. If the total amount of allocated tax credits
applied for under this paragraph at the conclusion of any year is less
than five million dollars, the remainder shall be treated as part of the
annual allocation for two thousand seventeen made available to the
empire state film post production credit pursuant to paragraph four of
subdivision (e) of section twenty-four of this article. However, in no
event may the total of the credits allocated under this paragraph and
the credits allocated under paragraph five of subdivision (a) of section
twenty-four of this article exceed five million dollars in any year
during the period two thousand fifteen through two thousand [nineteen]
TWENTY-TWO.
§ 4. This act shall take effect immediately.
PART N
Section 1. The section heading and subdivisions (a), (d) and (e) of
section 25-a of the labor law, the section heading and subdivisions (d)
and (e) as amended by section 1 of part AA of chapter 56 of the laws of
2015 and subdivision (a) as amended by section 1 of part VV of chapter
60 of the laws of 2016, are amended to read as follows:
Power to administer the urban youth jobs program tax credit.
(a) The commissioner is authorized to establish and administer the
program established under this section to provide tax incentives to
employers for employing at risk youth in part-time and full-time posi-
tions. There will be [five] TEN distinct pools of tax incentives.
Program one will cover tax incentives allocated for two thousand twelve
and two thousand thirteen. Program two will cover tax incentives allo-
cated in two thousand fourteen. Program three will cover tax incentives
allocated in two thousand fifteen. Program four will cover tax incen-
tives allocated in two thousand sixteen. Program five will cover tax
incentives allocated in two thousand seventeen. PROGRAM SIX WILL COVER
TAX INCENTIVES ALLOCATED IN TWO THOUSAND EIGHTEEN. PROGRAM SEVEN WILL
COVER TAX INCENTIVES ALLOCATED IN TWO THOUSAND NINETEEN. PROGRAM EIGHT
WILL COVER TAX INCENTIVES ALLOCATED IN TWO THOUSAND TWENTY. PROGRAM
NINE WILL COVER TAX INCENTIVES ALLOCATED IN TWO THOUSAND TWENTY-ONE.
PROGRAM TEN WILL COVER TAX INCENTIVES ALLOCATED IN TWO THOUSAND TWENTY-
TWO. The commissioner is authorized to allocate up to twenty-five
million dollars of tax credits under program one, ten million dollars of
tax credits under program two, twenty million dollars of tax credits
under program three, and fifty million dollars of tax credits under each
[of programs four and five] SUBSEQUENT PROGRAM.
(d) To participate in the program established under this section, an
employer must submit an application (in a form prescribed by the commis-
sioner) to the commissioner after January first, two thousand twelve but
S. 2009 43 A. 3009
no later than November thirtieth, two thousand twelve for program one,
after January first, two thousand fourteen but no later than November
thirtieth, two thousand fourteen for program two, after January first,
two thousand fifteen but no later than November thirtieth, two thousand
fifteen for program three, after January first, two thousand sixteen but
no later than November thirtieth, two thousand sixteen for program four,
[and] after January first, two thousand seventeen but no later than
November thirtieth, two thousand seventeen for program five, AFTER JANU-
ARY FIRST, TWO THOUSAND EIGHTEEN BUT NO LATER THAN NOVEMBER THIRTIETH,
TWO THOUSAND EIGHTEEN FOR PROGRAM SIX, AFTER JANUARY FIRST, TWO THOUSAND
NINETEEN BUT NO LATER THAN NOVEMBER THIRTIETH, TWO THOUSAND NINETEEN FOR
PROGRAM SEVEN, AFTER JANUARY FIRST, TWO THOUSAND TWENTY BUT NO LATER
THAN NOVEMBER THIRTIETH, TWO THOUSAND TWENTY FOR PROGRAM EIGHT, AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-ONE BUT NO LATER THAN NOVEMBER THIR-
TIETH, TWO THOUSAND TWENTY-ONE FOR PROGRAM NINE, AND AFTER JANUARY
FIRST, TWO THOUSAND TWENTY-TWO BUT NO LATER THAN NOVEMBER THIRTIETH, TWO
THOUSAND TWENTY-TWO FOR PROGRAM TEN. The qualified employees must start
their employment on or after January first, two thousand twelve but no
later than December thirty-first, two thousand twelve for program one,
on or after January first, two thousand fourteen but no later than
December thirty-first, two thousand fourteen for program two, on or
after January first, two thousand fifteen but no later than December
thirty-first, two thousand fifteen for program three, on or after Janu-
ary first, two thousand sixteen but no later than December thirty-first,
two thousand sixteen for program four, [and] on or after January first,
two thousand seventeen but no later than December thirty-first, two
thousand seventeen for program five, AFTER JANUARY FIRST, TWO THOUSAND
EIGHTEEN BUT NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN
FOR PROGRAM SIX, AFTER JANUARY FIRST, TWO THOUSAND NINETEEN BUT NO LATER
THAN DECEMBER THIRTY-FIRST, TWO THOUSAND NINETEEN FOR PROGRAM SEVEN,
AFTER JANUARY FIRST, TWO THOUSAND TWENTY BUT NO LATER THAN DECEMBER
THIRTY-FIRST, TWO THOUSAND TWENTY FOR PROGRAM EIGHT, AFTER JANUARY
FIRST, TWO THOUSAND TWENTY-ONE BUT NO LATER THAN DECEMBER THIRTY-FIRST,
TWO THOUSAND TWENTY-ONE FOR PROGRAM NINE, AND AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-TWO BUT NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOU-
SAND TWENTY-TWO FOR PROGRAM TEN. The commissioner shall establish
guidelines and criteria that specify requirements for employers to
participate in the program including criteria for certifying qualified
employees. Any regulations that the commissioner determines are neces-
sary may be adopted on an emergency basis notwithstanding anything to
the contrary in section two hundred two of the state administrative
procedure act. Such requirements may include the types of industries
that the employers are engaged in. The commissioner may give preference
to employers that are engaged in demand occupations or industries, or in
regional growth sectors, including those identified by the regional
economic development councils, such as clean energy, healthcare,
advanced manufacturing and conservation. In addition, the commissioner
shall give preference to employers who offer advancement and employee
benefit packages to the qualified individuals.
(e) If, after reviewing the application submitted by an employer, the
commissioner determines that such employer is eligible to participate in
the program established under this section, the commissioner shall issue
the employer a certificate of eligibility that establishes the employer
as a qualified employer. The certificate of eligibility shall specify
the maximum amount of tax credit that the employer will be allowed to
claim AND THE PROGRAM YEAR UNDER WHICH IT CAN BE CLAIMED.
S. 2009 44 A. 3009
§ 2. The subdivision heading of subdivision 36 of section 210-B of the
tax law, as amended by section 2 of part AA of chapter 56 of the laws of
2015, is amended to read as follows:
[Urban] NEW YORK youth jobs program tax credit.
§ 3. The subsection heading of subsection (tt) of section 606 of the
tax law, as amended by section 3 of part AA of chapter 56 of the laws of
2015, is amended to read as follows:
[Urban] NEW YORK youth jobs program tax credit.
§ 4. Clause (xxxiii) of subparagraph (B) of paragraph 1 of subsection
(i) of section 606 of the tax law, as amended by section 4 of part AA of
chapter 56 of the laws of 2015, is amended to read as follows:
(xxxiii) [Urban] NEW YORK youth Amount of credit under
jobs program tax credit subdivision thirty-six
of section two hundred ten-B
§ 5. This act shall take effect immediately.
PART O
Section 1. Subdivision 6 of section 187-b of the tax law, as amended
by section 1 of part G of chapter 59 of the laws of 2013, is amended to
read as follows:
6. Termination. The credit allowed by subdivision two of this section
shall not apply in taxable years beginning after December thirty-first,
two thousand [seventeen] TWENTY-TWO.
§ 2. Paragraph (f) of subdivision 30 of section 210-B of the tax law,
as added by section 17 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(f) Termination. The credit allowed by paragraph (b) of this subdivi-
sion shall not apply in taxable years beginning after December thirty-
first, two thousand [seventeen] TWENTY-TWO.
§ 3. Paragraph 6 of subsection (p) of section 606 of the tax law, as
amended by section 3 of part G of chapter 59 of the laws of 2013, is
amended to read as follows:
(6) Termination. The credit allowed by this subsection shall not apply
in taxable years beginning after December thirty-first, two thousand
[seventeen] TWENTY-TWO.
§ 4. This act shall take effect immediately.
PART P
Section 1. Subparagraph (i) of paragraph (b) of subdivision 1 of
section 210-B of the tax law, as amended by section 31 of part T of
chapter 59 of the laws of 2015, is amended to read as follows:
(i) A credit shall be allowed under this subdivision with respect to
tangible personal property and other tangible property, including build-
ings and structural components of buildings, which are: depreciable
pursuant to section one hundred sixty-seven of the internal revenue
code, have a useful life of four years or more, are acquired by purchase
as defined in section one hundred seventy-nine (d) of the internal
revenue code, have a situs in this state and are (A) principally used by
the taxpayer in the production of goods by manufacturing, processing,
assembling, refining, mining, extracting, farming, agriculture, horti-
culture, floriculture, viticulture or commercial fishing, (B) industrial
waste treatment facilities or air pollution control facilities, used in
the taxpayer's trade or business, (C) research and development property,
or (D) principally used in the ordinary course of the taxpayer's trade
S. 2009 45 A. 3009
or business as a broker or dealer in connection with the purchase or
sale (which shall include but not be limited to the issuance, entering
into, assumption, offset, assignment, termination, or transfer) of
stocks, bonds or other securities as defined in section four hundred
seventy-five (c)(2) of the Internal Revenue Code, or of commodities as
defined in section four hundred seventy-five (e) of the Internal Revenue
Code, (E) principally used in the ordinary course of the taxpayer's
trade or business of providing investment advisory services for a regu-
lated investment company as defined in section eight hundred fifty-one
of the Internal Revenue Code, or lending, loan arrangement or loan orig-
ination services to customers in connection with the purchase or sale
(which shall include but not be limited to the issuance, entering into,
assumption, offset, assignment, termination, or transfer) of securities
as defined in section four hundred seventy-five (c)(2) of the Internal
Revenue Code, (F) principally used in the ordinary course of the taxpay-
er's business as an exchange registered as a national securities
exchange within the meaning of sections 3(a)(1) and 6(a) of the Securi-
ties Exchange Act of 1934 or a board of trade as defined in subparagraph
one of paragraph (a) of section fourteen hundred ten of the not-for-pro-
fit corporation law or as an entity that is wholly owned by one or more
such national securities exchanges or boards of trade and that provides
automation or technical services thereto, or (G) principally used as a
qualified film production facility including qualified film production
facilities having a situs in an empire zone designated as such pursuant
to article eighteen-B of the general municipal law, where the taxpayer
is providing three or more services to any qualified film production
company using the facility, including such services as a studio lighting
grid, lighting and grip equipment, multi-line phone service, broadband
information technology access, industrial scale electrical capacity,
food services, security services, and heating, ventilation and air
conditioning. For purposes of clauses (D), (E) and (F) of this subpara-
graph, property purchased by a taxpayer affiliated with a regulated
broker, dealer, registered investment advisor, national securities
exchange or board of trade, is allowed a credit under this subdivision
if the property is used by its affiliated regulated broker, dealer,
registered investment advisor, national securities exchange or board of
trade in accordance with this subdivision. For purposes of determining
if the property is principally used in qualifying uses, the uses by the
taxpayer described in clauses (D) and (E) of this subparagraph may be
aggregated. In addition, the uses by the taxpayer, its affiliated regu-
lated broker, dealer and registered investment advisor under either or
both of those clauses may be aggregated. Provided, however, a taxpayer
shall not be allowed the credit provided by clauses (D), (E) and (F) of
this subparagraph unless the property is first placed in service before
October first, two thousand fifteen and (i) eighty percent or more of
the employees performing the administrative and support functions
resulting from or related to the qualifying uses of such equipment are
located in this state or (ii) the average number of employees that
perform the administrative and support functions resulting from or
related to the qualifying uses of such equipment and are located in this
state during the taxable year for which the credit is claimed is equal
to or greater than ninety-five percent of the average number of employ-
ees that perform these functions and are located in this state during
the thirty-six months immediately preceding the year for which the cred-
it is claimed, or (iii) the number of employees located in this state
during the taxable year for which the credit is claimed is equal to or
S. 2009 46 A. 3009
greater than ninety percent of the number of employees located in this
state on December thirty-first, nineteen hundred ninety-eight or, if the
taxpayer was not a calendar year taxpayer in nineteen hundred ninety-
eight, the last day of its first taxable year ending after December
thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes
subject to tax in this state after the taxable year beginning in nine-
teen hundred ninety-eight, then the taxpayer is not required to satisfy
the employment test provided in the preceding sentence of this subpara-
graph for its first taxable year. For purposes of clause (iii) of this
subparagraph the employment test will be based on the number of employ-
ees located in this state on the last day of the first taxable year the
taxpayer is subject to tax in this state. If the uses of the property
must be aggregated to determine whether the property is principally used
in qualifying uses, then either each affiliate using the property must
satisfy this employment test or this employment test must be satisfied
through the aggregation of the employees of the taxpayer, its affiliated
regulated broker, dealer, and registered investment adviser using the
property. For purposes of [this subdivision, the term "goods" shall not
include electricity] CLAUSE (A) OF THIS SUBPARAGRAPH, TANGIBLE PERSONAL
PROPERTY AND OTHER TANGIBLE PROPERTY SHALL NOT INCLUDE PROPERTY PRINCI-
PALLY USED BY THE TAXPAYER (I) IN THE PRODUCTION OR DISTRIBUTION OF
ELECTRICITY, NATURAL GAS, STEAM, OR WATER DELIVERED THROUGH PIPES AND
MAINS, OR (II) IN THE CREATION, PRODUCTION OR REPRODUCTION, IN ANY MEDI-
UM, OF A FILM, VISUAL OR AUDIO RECORDING, OR COMMERCIAL, WHERE THE COSTS
ASSOCIATED WITH SUCH CREATION, PRODUCTION OR REPRODUCTION ARE INCURRED
OUTSIDE OF THIS STATE, OR IN THE DUPLICATION, FOR PURPOSES OF BROADCAST
IN ANY MEDIUM, OF A MASTER OF A FILM, VISUAL OR AUDIO RECORDING, OR
COMMERCIAL, WHERE THE COSTS ASSOCIATED WITH SUCH DUPLICATION ARE
INCURRED OUTSIDE OF THIS STATE.
§ 2. Subparagraph (A) of paragraph 2 of subsection (a) of section 606
of the tax law, as amended by chapter 637 of the laws of 2008, is
amended to read as follows:
(A) A credit shall be allowed under this subsection with respect to
tangible personal property and other tangible property, including build-
ings and structural components of buildings, which are: depreciable
pursuant to section one hundred sixty-seven of the internal revenue
code, have a useful life of four years or more, are acquired by purchase
as defined in section one hundred seventy-nine (d) of the internal
revenue code, have a situs in this state and are (i) principally used by
the taxpayer in the production of goods by manufacturing, processing,
assembling, refining, mining, extracting, farming, agriculture, horti-
culture, floriculture, viticulture or commercial fishing, (ii) indus-
trial waste treatment facilities or air pollution control facilities,
used in the taxpayer's trade or business, (iii) research and development
property, (iv) principally used in the ordinary course of the taxpayer's
trade or business as a broker or dealer in connection with the purchase
or sale (which shall include but not be limited to the issuance, enter-
ing into, assumption, offset, assignment, termination, or transfer) of
stocks, bonds or other securities as defined in section four hundred
seventy-five (c)(2) of the Internal Revenue Code, or of commodities as
defined in section 475(e) of the Internal Revenue Code, (v) principally
used in the ordinary course of the taxpayer's trade or business of
providing investment advisory services for a regulated investment compa-
ny as defined in section eight hundred fifty-one of the Internal Revenue
Code, or lending, loan arrangement or loan origination services to
customers in connection with the purchase or sale (which shall include
S. 2009 47 A. 3009
but not be limited to the issuance, entering into, assumption, offset,
assignment, termination, or transfer) of securities as defined in
section four hundred seventy-five (c)(2) of the Internal Revenue Code,
or (vi) principally used as a qualified film production facility includ-
ing qualified film production facilities having a situs in an empire
zone designated as such pursuant to article eighteen-B of the general
municipal law, where the taxpayer is providing three or more services to
any qualified film production company using the facility, including such
services as a studio lighting grid, lighting and grip equipment, multi-
line phone service, broadband information technology access, industrial
scale electrical capacity, food services, security services, and heat-
ing, ventilation and air conditioning. For purposes of clauses (iv) and
(v) of this subparagraph, property purchased by a taxpayer affiliated
with a regulated broker, dealer, or registered investment adviser is
allowed a credit under this subsection if the property is used by its
affiliated regulated broker, dealer or registered investment adviser in
accordance with this subsection. For purposes of determining if the
property is principally used in qualifying uses, the uses by the taxpay-
er described in clauses (iv) and (v) of this subparagraph may be aggre-
gated. In addition, the uses by the taxpayer, its affiliated regulated
broker, dealer and registered investment adviser under either or both of
those clauses may be aggregated. Provided, however, a taxpayer shall not
be allowed the credit provided by clauses (iv) and (v) of this subpara-
graph unless (I) eighty percent or more of the employees performing the
administrative and support functions resulting from or related to the
qualifying uses of such equipment are located in this state, or (II) the
average number of employees that perform the administrative and support
functions resulting from or related to the qualifying uses of such
equipment and are located in this state during the taxable year for
which the credit is claimed is equal to or greater than ninety-five
percent of the average number of employees that perform these functions
and are located in this state during the thirty-six months immediately
preceding the year for which the credit is claimed, or (III) the number
of employees located in this state during the taxable year for which the
credit is claimed is equal to or greater than ninety percent of the
number of employees located in this state on December thirty-first,
nineteen hundred ninety-eight or, if the taxpayer was not a calendar
year taxpayer in nineteen hundred ninety-eight, the last day of its
first taxable year ending after December thirty-first, nineteen hundred
ninety-eight. If the taxpayer becomes subject to tax in this state after
the taxable year beginning in nineteen hundred ninety-eight, then the
taxpayer is not required to satisfy the employment test provided in the
preceding sentence of this subparagraph for its first taxable year. For
the purposes of clause (III) of this subparagraph the employment test
will be based on the number of employees located in this state on the
last day of the first taxable year the taxpayer is subject to tax in
this state. If the uses of the property must be aggregated to determine
whether the property is principally used in qualifying uses, then either
each affiliate using the property must satisfy this employment test or
this employment test must be satisfied through the aggregation of the
employees of the taxpayer, its affiliated regulated broker, dealer, and
registered investment adviser using the property. For purposes of [this
subsection, the term "goods" shall not include electricity] CLAUSE (I)
OF THIS SUBPARAGRAPH, TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE
PROPERTY SHALL NOT INCLUDE PROPERTY PRINCIPALLY USED BY THE TAXPAYER (A)
IN THE PRODUCTION OR DISTRIBUTION OF ELECTRICITY, NATURAL GAS, STEAM, OR
S. 2009 48 A. 3009
WATER DELIVERED THROUGH PIPES AND MAINS, OR (B) IN THE CREATION,
PRODUCTION OR REPRODUCTION, IN ANY MEDIUM, OF A FILM, VISUAL OR AUDIO
RECORDING, OR COMMERCIAL, WHERE THE COSTS ASSOCIATED WITH SUCH CREATION,
PRODUCTION OR REPRODUCTION ARE INCURRED OUTSIDE OF THIS STATE, OR IN THE
DUPLICATION, FOR PURPOSES OF BROADCAST IN ANY MEDIUM, OF A MASTER OF A
FILM, VISUAL OR AUDIO RECORDING, OR COMMERCIAL, WHERE THE COSTS ASSOCI-
ATED WITH SUCH DUPLICATION ARE INCURRED OUTSIDE OF THIS STATE.
§ 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2018.
PART Q
Section 1. Legislative findings. The legislature finds it necessary to
revise a decision of the tax appeals tribunal that disturbed the long-
standing policy of the department of taxation and finance that single
member limited liability companies that are treated as disregarded enti-
ties for federal income tax purposes also would be treated as disre-
garded entities for purposes of determining eligibility of the owners of
such entities for tax credits allowed under article 9, 9-A, 22, 32
(prior to its repeal) or 33 of the tax law. The decision of the tax
appeals tribunal, if allowed to stand, will result in the denial of tax
credits, such as empire zone tax credits, to taxpayers who in prior
years received those credits.
§ 2. The tax law is amended by adding a new section 43 to read as
follows:
§ 43. SINGLE MEMBER LIMITED LIABILITY COMPANIES AND ELIGIBILITY FOR
TAX CREDITS. A LIMITED LIABILITY COMPANY THAT HAS A SINGLE MEMBER AND IS
DISREGARDED AS AN ENTITY SEPARATE FROM ITS OWNER FOR FEDERAL INCOME TAX
PURPOSES (WITHOUT REFERENCE TO ANY SPECIAL RULES RELATED TO THE IMPOSI-
TION OF CERTAIN FEDERAL TAXES, INCLUDING BUT NOT LIMITED TO CERTAIN
EMPLOYMENT AND EXCISE TAXES) SHALL BE DISREGARDED AS AN ENTITY SEPARATE
FROM ITS OWNER FOR PURPOSES OF DETERMINING WHETHER OR NOT THE TAXPAYER
THAT IS THE SINGLE MEMBER OF SUCH LIMITED LIABILITY COMPANY SATISFIES
THE REQUIREMENTS TO BE ELIGIBLE FOR ANY TAX CREDIT ALLOWED UNDER ARTICLE
NINE, NINE-A, TWENTY-TWO OR THIRTY-THREE OF THIS CHAPTER OR ALLOWED
UNDER ARTICLE THIRTY-TWO OF THIS CHAPTER PRIOR TO THE REPEAL OF SUCH
ARTICLE. SUCH REQUIREMENTS, INCLUDING BUT NOT LIMITED TO ANY NECESSARY
CERTIFICATION, EMPLOYMENT OR INVESTMENT THRESHOLDS, PAYMENT OBLIGATIONS,
AND ANY TIME PERIOD FOR ELIGIBILITY, SHALL BE IMPOSED ON THE TAXPAYER
AND THE DETERMINATION OF WHETHER OR NOT SUCH REQUIREMENTS HAVE BEEN
SATISFIED AND THE COMPUTATION OF THE CREDIT SHALL BE MADE BY DEEMING
SUCH TAXPAYER AND SUCH LIMITED LIABILITY COMPANY TO BE A SINGLE ENTITY.
IF THE TAXPAYER IS THE SINGLE MEMBER OF MORE THAN ONE LIMITED LIABILITY
COMPANY THAT IS DISREGARDED AS AN ENTITY SEPARATE FROM ITS OWNER, THE
DETERMINATION OF WHETHER OR NOT THE REQUIREMENTS TO BE ELIGIBLE FOR ANY
TAX CREDIT ALLOWED UNDER ARTICLE NINE, NINE-A, TWENTY-TWO OR THIRTY-
THREE OF THIS CHAPTER OR ALLOWED UNDER ARTICLE THIRTY-TWO OF THIS CHAP-
TER PRIOR TO THE REPEAL OF SUCH ARTICLE HAVE BEEN SATISFIED AND THE
COMPUTATION OF THE CREDIT SHALL BE MADE BY DEEMING SUCH TAXPAYER AND
SUCH LIMITED LIABILITY COMPANIES TO BE A SINGLE ENTITY.
§ 3. This act shall take effect immediately; provided however, that
section 43 of the tax law, as added by section two of this act, shall
apply to all taxable years for which the statute of limitations for
seeking a refund or assessing additional tax is still open.
PART R
S. 2009 49 A. 3009
Section 1. Subparagraph (B) of paragraph 1 of subsection (a) of
section 601 of the tax law is REPEALED and a new subparagraph (B) is
added to read as follows:
(B)(I) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND EIGHTEEN THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $17,150 4% OF THE NEW YORK TAXABLE
INCOME
OVER $17,150 BUT NOT OVER $23,600 $686 PLUS 4.5% OF EXCESS OVER
$17,150
OVER $23,600 BUT NOT OVER $27,900 $976 PLUS 5.25% OF EXCESS OVER
$23,600
OVER $27,900 BUT NOT OVER $43,000 $1,202 PLUS 5.9% OF EXCESS OVER
$27,900
OVER $43,000 BUT NOT OVER $161,550 $2,093 PLUS 6.33% OF EXCESS OVER
$43,000
OVER $161,550 BUT NOT OVER $323,200 $9,597 PLUS 6.57% OF EXCESS OVER
$161,550
OVER $323,200 BUT NOT OVER $2,155,350 $20,218 PLUS 6.85% OF EXCESS OVER
$323,200
OVER $2,155,350 $145,720 PLUS 8.82% OF EXCESS OVER
$2,155,350
(II) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN THE FOLLOW-
ING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $17,150 4% OF THE NEW YORK TAXABLE
INCOME
OVER $17,150 BUT NOT OVER $23,600 $686 PLUS 4.5% OF EXCESS OVER
$17,150
OVER $23,600 BUT NOT OVER $27,900 $976 PLUS 5.25% OF EXCESS OVER
$23,600
OVER $27,900 BUT NOT OVER $43,000 $1,202 PLUS 5.9% OF EXCESS OVER
$27,900
OVER $43,000 BUT NOT OVER $161,550 $2,093 PLUS 6.21% OF EXCESS OVER
$43,000
OVER $161,550 BUT NOT OVER $323,200 $9,455 PLUS 6.49% OF EXCESS OVER
$161,550
OVER $323,200 BUT NOT OVER $2,155,350 $19,946 PLUS 6.85% OF EXCESS OVER
$323,200
OVER $2,155,350 $145,448 PLUS 8.82% OF EXCESS OVER
$2,155,350
(III) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY THE FOLLOWING
RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $17,150 4% OF THE NEW YORK TAXABLE INCOME
OVER $17,150 BUT NOT OVER $23,600 $686 PLUS 4.5% OF EXCESS OVER
$17,150
OVER $23,600 BUT NOT OVER $27,900 $976 PLUS 5.25% OF EXCESS OVER
$23,600
OVER $27,900 BUT NOT OVER $43,000 $1,202 PLUS 5.9% OF EXCESS OVER
$27,900
OVER $43,000 BUT NOT OVER $161,550 $2,093 PLUS 6.09% OF EXCESS OVER
$43,000
OVER $161,550 BUT NOT OVER $323,200 $9,313 PLUS 6.41% OF EXCESS OVER
$161,550
OVER $323,200 BUT NOT OVER $2,155,350 $19,674 PLUS 6.85% OF EXCESS OVER
S. 2009 50 A. 3009
$323,200
OVER $2,155,350 $145,177 PLUS 8.82% OF EXCESS OVER
$2,155,350
(IV) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-ONE THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $17,150 4% OF THE NEW YORK TAXABLE INCOME
OVER $17,150 BUT NOT OVER $23,600 $686 PLUS 4.5% OF EXCESS OVER
$17,150
OVER $23,600 BUT NOT OVER $27,900 $976 PLUS 5.25% OF EXCESS OVER
$23,600
OVER $27,900 BUT NOT OVER $43,000 $1,202 PLUS 5.9% OF EXCESS OVER
$27,900
OVER $43,000 BUT NOT OVER $161,550 $2,093 PLUS 5.97% OF EXCESS OVER
$43,000
OVER $161,550 BUT NOT OVER $323,200 $9,170 PLUS 6.33% OF EXCESS OVER
$161,550
OVER $323,200 $19,403 PLUS 6.85% OF EXCESS OVER
$323,200
(V) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO THE FOLLOW-
ING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $17,150 4% OF THE NEW YORK TAXABLE INCOME
OVER $17,150 BUT NOT OVER $23,600 $686 PLUS 4.5% OF EXCESS OVER
$17,150
OVER $23,600 BUT NOT OVER $27,900 $976 PLUS 5.25% OF EXCESS OVER
$23,600
OVER $27,900 BUT NOT OVER $161,550 $1,202 PLUS 5.85% OF EXCESS OVER
$27,900
OVER $161,550 BUT NOT OVER $323,200 $9,021 PLUS 6.25% OF EXCESS OVER
$161,550
OVER $323,200 $19,124 PLUS 6.85% OF EXCESS OVER
$323,200
(VI) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-THREE THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $17,150 4% OF THE NEW YORK TAXABLE INCOME
OVER $17,150 BUT NOT OVER $23,600 $686 PLUS 4.5% OF EXCESS OVER
$17,150
OVER $23,600 BUT NOT OVER $27,900 $976 PLUS 5.25% OF EXCESS OVER
$23,600
OVER $27,900 BUT NOT OVER $161,550 $1,202 PLUS 5.73% OF EXCESS OVER
$27,900
OVER $161,550 BUT NOT OVER $323,200 $8,860 PLUS 6.17% OF EXCESS OVER
$161,550
OVER $323,200 $18,834 PLUS 6.85% OF EXCESS OVER
$323,200
(VII) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-FOUR THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $17,150 4% OF THE NEW YORK TAXABLE INCOME
OVER $17,150 BUT NOT OVER $23,600 $686 PLUS 4.5% OF EXCESS OVER
$17,150
OVER $23,600 BUT NOT OVER $27,900 $976 PLUS 5.25% OF EXCESS OVER
$23,600
OVER $27,900 BUT NOT OVER $161,550 $1,202 PLUS 5.61% OF EXCESS OVER
S. 2009 51 A. 3009
$27,900
OVER $161,550 BUT NOT OVER $323,200 $8,700 PLUS 6.09% OF EXCESS OVER
$161,550
OVER $323,200 $18,544 PLUS 6.85% OF EXCESS OVER
$323,200
(VIII) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FOUR THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $17,150 4% OF THE NEW YORK TAXABLE INCOME
OVER $17,150 BUT NOT OVER $23,600 $686 PLUS 4.5% OF EXCESS OVER
$17,150
OVER $23,600 BUT NOT OVER $27,900 $976 PLUS 5.25% OF EXCESS OVER
$23,600
OVER $27,900 BUT NOT OVER $161,550 $1,202 PLUS 5.5% OF EXCESS OVER
$27,900
OVER $161,550 BUT NOT OVER $323,200 $8,553 PLUS 6.00% OF EXCESS OVER
$161,550
OVER $323,200 $18,252 PLUS 6.85% OF EXCESS OVER
$323,200
§ 2. Subparagraph (B) of paragraph 1 of subsection (b) of section 601
of the tax law is REPEALED and a new subparagraph (B) is added to read
as follows:
(B)(I) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND EIGHTEEN THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $12,800 4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650 $512 PLUS 4.5% OF EXCESS OVER $12,800
OVER $17,650 BUT NOT OVER $20,900 $730 PLUS 5.25% OF EXCESS OVER
$17,650
OVER $20,900 BUT NOT OVER $32,200 $901 PLUS 5.9% OF EXCESS OVER $20,900
OVER $32,200 BUT NOT OVER $107,650 $1,568 PLUS 6.33% OF EXCESS OVER
$32,200
OVER $107,650 BUT NOT OVER $269,300 $6,344 PLUS 6.57% OF EXCESS OVER
$107,650
OVER $269,300 BUT NOT OVER $1,616,450 $16,964 PLUS 6.85% OF EXCESS OVER
$269,300
OVER $1,616,450 $109,244 PLUS 8.82% OF EXCESS OVER
$1,616,450
(II) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN THE FOLLOW-
ING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $12,800 4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650 $512 PLUS 4.5% OF EXCESS OVER $12,800
OVER $17,650 BUT NOT OVER $20,900 $730 PLUS 5.25% OF EXCESS OVER
$17,650
OVER $20,900 BUT NOT OVER $32,200 $901 PLUS 5.9% OF EXCESS OVER $20,900
OVER $32,200 BUT NOT OVER $107,650 $1,568 PLUS 6.21% OF EXCESS OVER
$32,200
OVER $107,650 BUT NOT OVER $269,300 $6,253 PLUS 6.49% OF EXCESS OVER
$107,650
OVER $269,300 BUT NOT OVER $1,616,450 $16,744 PLUS 6.85% OF EXCESS OVER
$269,300
OVER $1,616,450 $109,024 PLUS 8.82% OF EXCESS OVER
$1,616,450
(III) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY THE FOLLOWING
RATES SHALL APPLY:
S. 2009 52 A. 3009
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $12,800 4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650 $512 PLUS 4.5% OF EXCESS OVER $12,800
OVER $17,650 BUT NOT OVER $20,900 $730 PLUS 5.25% OF EXCESS OVER
$17,650
OVER $20,900 BUT NOT OVER $32,200 $901 PLUS 5.9% OF EXCESS OVER $20,900
OVER $32,200 BUT NOT OVER $107,650 $1,568 PLUS 6.09% OF EXCESS OVER
$32,200
OVER $107,650 BUT NOT OVER $269,300 $6,162 PLUS 6.41% OF EXCESS OVER
$107,650
OVER $269,300 BUT NOT OVER $1,616,450 $16,524 PLUS 6.85% OF EXCESS OVER
$269,300
OVER $1,616,450 $108,804 PLUS 8.82% OF EXCESS OVER
$1,616,450
(IV) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-ONE THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $12,800 4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650 $512 PLUS 4.5% OF EXCESS OVER
$12,800
OVER $17,650 BUT NOT OVER $20,900 $730 PLUS 5.25% OF EXCESS OVER
$17,650
OVER $20,900 BUT NOT OVER $32,200 $901 PLUS 5.9% OF EXCESS OVER
$20,900
OVER $32,200 BUT NOT OVER $107,650 $1,568 PLUS 5.97% OF EXCESS OVER
$32,200
OVER $107,650 BUT NOT OVER $269,300 $6,072 PLUS 6.33% OF EXCESS OVER
$107,650
OVER $269,300 $16,304 PLUS 6.85% OF EXCESS OVER
$269,300
(V) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO THE FOLLOW-
ING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $12,800 4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650 $512 PLUS 4.5% OF EXCESS OVER
$12,800
OVER $17,650 BUT NOT OVER $20,900 $730 PLUS 5.25% OF EXCESS OVER
$17,650
OVER $20,900 BUT NOT OVER $107,650 $901 PLUS 5.85% OF EXCESS OVER
$20,900
OVER $107,650 BUT NOT OVER $269,300 $5,976 PLUS 6.25% OF EXCESS OVER
$107,650
OVER $269,300 $16,079 PLUS 6.85% OF EXCESS OVER
$269,300
(VI) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-THREE THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $12,800 4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650 $512 PLUS 4.5% OF EXCESS OVER
$12,800
OVER $17,650 BUT NOT OVER $20,900 $730 PLUS 5.25% OF EXCESS OVER
$17,650
OVER $20,900 BUT NOT OVER $107,650 $901 PLUS 5.73% OF EXCESS OVER
$20,900
OVER $107,650 BUT NOT OVER $269,300 $5,872 PLUS 6.17% OF EXCESS OVER
S. 2009 53 A. 3009
$107,650
OVER $269,300 $15,845 PLUS 6.85% OF EXCESS OVER
$269,300
(VII) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-FOUR THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $12,800 4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650 $512 PLUS 4.5% OF EXCESS OVER
$12,800
OVER $17,650 BUT NOT OVER $20,900 $730 PLUS 5.25% OF EXCESS OVER
$17,650
OVER $20,900 BUT NOT OVER $107,650 $901 PLUS 5.61% OF EXCESS OVER
$20,900
OVER $107,650 BUT NOT OVER $269,300 $5,768 PLUS 6.09% OF EXCESS OVER
$107,650
OVER $269,300 $15,612 PLUS 6.85% OF EXCESS OVER
$269,300
(VIII) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FOUR THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $12,800 4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650 $512 PLUS 4.5% OF EXCESS OVER
$12,800
OVER $17,650 BUT NOT OVER $20,900 $730 PLUS 5.25% OF EXCESS OVER
$17,650
OVER $20,900 BUT NOT OVER $107,650 $901 PLUS 5.5% OF EXCESS OVER
$20,900
OVER $107,650 BUT NOT OVER $269,300 $5,672 PLUS 6.00% OF EXCESS OVER
$107,650
OVER $269,300 $15,371 PLUS 6.85% OF EXCESS OVER
$269,300
§ 3. Subparagraph (B) of paragraph 1 of subsection (c) of section 601
of the tax law is REPEALED and a new subparagraph (B) is added to read
as follows:
(B)(I) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND EIGHTEEN THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $8,500 4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700 $340 PLUS 4.5% OF EXCESS OVER
$8,500
OVER $11,700 BUT NOT OVER $13,900 $484 PLUS 5.25% OF EXCESS OVER
$11,700
OVER $13,900 BUT NOT OVER $21,400 $600 PLUS 5.9% OF EXCESS OVER
$13,900
OVER $21,400 BUT NOT OVER $80,650 $1,042 PLUS 6.33% OF EXCESS OVER
$21,400
OVER $80,650 BUT NOT OVER $215,400 $4,793 PLUS 6.57% OF EXCESS OVER
$80,650
OVER $215,400 BUT NOT OVER $1,077,550 $13,646 PLUS 6.85% OF EXCESS OVER
$215,400
OVER $1,077,550 $72,703 PLUS 8.82% OF EXCESS OVER
$1,077,550
(II) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN THE FOLLOW-
ING RATES SHALL APPLY:
S. 2009 54 A. 3009
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $8,500 4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700 $340 PLUS 4.5% OF EXCESS OVER
$8,500
OVER $11,700 BUT NOT OVER $13,900 $484 PLUS 5.25% OF EXCESS OVER
$11,700
OVER $13,900 BUT NOT OVER $21,400 $600 PLUS 5.9% OF EXCESS OVER
$13,900
OVER $21,400 BUT NOT OVER $80,650 $1,042 PLUS 6.21% OF EXCESS OVER
$21,400
OVER $80,650 BUT NOT OVER $215,400 $4,721 PLUS 6.49% OF EXCESS OVER
$80,650
OVER $215,400 BUT NOT OVER $1,077,550 $13,467 PLUS 6.85% OF EXCESS OVER
$215,400
OVER $1,077,550 $72,524 PLUS 8.82% OF EXCESS OVER
$1,077,550
(III) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY THE FOLLOWING
RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $8,500 4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700 $340 PLUS 4.5% OF EXCESS OVER
$8,500
OVER $11,700 BUT NOT OVER $13,900 $484 PLUS 5.25% OF EXCESS OVER
$11,700
OVER $13,900 BUT NOT OVER $21,400 $600 PLUS 5.9% OF EXCESS OVER
$13,900
OVER $21,400 BUT NOT OVER $80,650 $1,042 PLUS 6.09% OF EXCESS OVER
$21,400
OVER $80,650 BUT NOT OVER $215,400 $4,650 PLUS 6.41% OF EXCESS OVER
$80,650
OVER $215,400 BUT NOT OVER $1,077,550 $13,288 PLUS 6.85% OF EXCESS OVER
$215,400
OVER $1,077,550 $72,345 PLUS 8.82% OF EXCESS OVER
$1,077,550
(IV) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-ONE THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $8,500 4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700 $340 PLUS 4.5% OF EXCESS OVER
$8,500
OVER $11,700 BUT NOT OVER $13,900 $484 PLUS 5.25% OF EXCESS OVER
$11,700
OVER $13,900 BUT NOT OVER $21,400 $600 PLUS 5.9% OF EXCESS OVER
$13,900
OVER $21,400 BUT NOT OVER $80,650 $1,042 PLUS 5.97% OF EXCESS OVER
$21,400
OVER $80,650 BUT NOT OVER $215,400 $4,579 PLUS 6.33% OF EXCESS OVER
$80,650
OVER $215,400 $13,109 PLUS 6.85% OF EXCESS OVER
$215,400
(V) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO THE FOLLOW-
ING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $8,500 4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700 $340 PLUS 4.5% OF EXCESS OVER
S. 2009 55 A. 3009
$8,500
OVER $11,700 BUT NOT OVER $13,900 $484 PLUS 5.25% OF EXCESS OVER
$11,700
OVER $13,900 BUT NOT OVER $80,650 $600 PLUS 5.85% OF EXCESS OVER
$13,900
OVER $80,650 BUT NOT OVER $215,400 $4,504 PLUS 6.25% OF EXCESS OVER
$80,650
OVER $215,400 $12,926 PLUS 6.85% OF EXCESS OVER
$215,400
(VI) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-THREE THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $8,500 4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700 $340 PLUS 4.5% OF EXCESS OVER
$8,500
OVER $11,700 BUT NOT OVER $13,900 $484 PLUS 5.25% OF EXCESS OVER
$11,700
OVER $13,900 BUT NOT OVER $80,650 $600 PLUS 5.73% OF EXCESS OVER
$13,900
OVER $80,650 BUT NOT OVER $215,400 $4,424 PLUS 6.17% OF EXCESS OVER
$80,650
OVER $215,400 $12,738 PLUS 6.85% OF EXCESS OVER
$215,400
(VII) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-FOUR THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $8,500 4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700 $340 PLUS 4.5% OF EXCESS OVER
$8,500
OVER $11,700 BUT NOT OVER $13,900 $484 PLUS 5.25% OF EXCESS OVER
$11,700
OVER $13,900 BUT NOT OVER $80,650 $600 PLUS 5.61% OF EXCESS OVER
$13,900
OVER $80,650 BUT NOT OVER $215,400 $4,344 PLUS 6.09% OF EXCESS OVER
$80,650
OVER $215,400 $12,550 PLUS 6.85% OF EXCESS OVER
$215,400
(VIII) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FOUR THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS:
NOT OVER $8,500 4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700 $340 PLUS 4.5% OF EXCESS OVER
$8,500
OVER $11,700 BUT NOT OVER $13,900 $484 PLUS 5.25% OF EXCESS OVER
$11,700
OVER $13,900 BUT NOT OVER $80,650 $600 PLUS 5.50% OF EXCESS OVER
$13,900
OVER $80,650 BUT NOT OVER $215,400 $4,271 PLUS 6.00% OF EXCESS OVER
$80,650
OVER $215,400 $12,356 PLUS 6.85% OF EXCESS OVER
$215,400
§ 4. Subparagraph (D) of paragraph 1 of subsection (d-1) of section
601 of the tax law, as amended by section 5 of part FF of chapter 59 of
the laws of 2013, is amended to read as follows:
(D) The tax table benefit is the difference between (i) the amount of
taxable income set forth in the tax table in paragraph one of subsection
S. 2009 56 A. 3009
(a) of this section not subject to the 8.82 percent rate of tax for the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for such amount of taxable income set forth in the tax table applicable
to the taxable year in paragraph one of subsection (a) of this section
less the sum of the tax table benefits in subparagraphs (A), (B) and (C)
of this paragraph. The fraction for this subparagraph is computed as
follows: the numerator is the lesser of fifty thousand dollars or the
excess of New York adjusted gross income for the taxable year over two
million dollars and the denominator is fifty thousand dollars. This
subparagraph shall apply only to taxable years beginning on or after
January first, two thousand twelve and before January first, two thou-
sand [eighteen] TWENTY-ONE.
§ 5. Subparagraph (C) of paragraph 2 of subsection (d-1) of section
601 of the tax law, as amended by section 6 of part FF of chapter 59 of
the laws of 2013, is amended to read as follows:
(C) The tax table benefit is the difference between (i) the amount of
taxable income set forth in the tax table in paragraph one of subsection
(b) of this section not subject to the 8.82 percent rate of tax for the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for such amount of taxable income set forth in the tax table applicable
to the taxable year in paragraph one of subsection (b) of this section
less the sum of the tax table benefits in subparagraphs (A) and (B) of
this paragraph. The fraction for this subparagraph is computed as
follows: the numerator is the lesser of fifty thousand dollars or the
excess of New York adjusted gross income for the taxable year over one
million five hundred thousand dollars and the denominator is fifty thou-
sand dollars. This subparagraph shall apply only to taxable years begin-
ning on or after January first, two thousand twelve and before January
first, two thousand [eighteen] TWENTY-ONE.
§ 6. Subparagraph (C) of paragraph 3 of subsection (d-1) of section
601 of the tax law, as amended by section 7 of part FF of chapter 59 of
the laws of 2013, is amended to read as follows:
(C) The tax table benefit is the difference between (i) the amount of
taxable income set forth in the tax table in paragraph one of subsection
(c) of this section not subject to the 8.82 percent rate of tax for the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for such amount of taxable income set forth in the tax table applicable
to the taxable year in paragraph one of subsection (c) of this section
less the sum of the tax table benefits in subparagraphs (A) and (B) of
this paragraph. The fraction for this subparagraph is computed as
follows: the numerator is the lesser of fifty thousand dollars or the
excess of New York adjusted gross income for the taxable year over one
million dollars and the denominator is fifty thousand dollars. This
subparagraph shall apply only to taxable years beginning on or after
January first, two thousand twelve and before January first, two thou-
sand [eighteen] TWENTY-ONE.
§ 7. This act shall take effect immediately.
PART S
Section 1. Subsection (g) of section 615 of the tax law, as amended by
section 1 of part H of chapter 59 of the laws of 2015, is amended to
read as follows:
(g)(1) With respect to an individual whose New York adjusted gross
income is over one million dollars and no more than ten million dollars,
the New York itemized deduction shall be an amount equal to fifty
S. 2009 57 A. 3009
percent of any charitable contribution deduction allowed under section
one hundred seventy of the internal revenue code [for taxable years
beginning after two thousand nine and before two thousand eighteen. With
respect to an individual whose New York adjusted gross income is over
one million dollars, the New York itemized deduction shall be an amount
equal to fifty percent of any charitable contribution deduction allowed
under section one hundred seventy of the internal revenue code for taxa-
ble years beginning in two thousand nine or after two thousand seven-
teen].
(2) With respect to an individual whose New York adjusted gross income
is over ten million dollars, the New York itemized deduction shall be an
amount equal to twenty-five percent of any charitable contribution
deduction allowed under section one hundred seventy of the internal
revenue code [for taxable years beginning after two thousand nine and
ending before two thousand eighteen].
§ 2. Subdivision (g) of section 11-1715 of the administrative code of
the city of New York, as amended by section 2 of part H of chapter 59 of
the laws of 2015, is amended to read as follows:
(g) (1) With respect to an individual whose New York adjusted gross
income is over one million dollars but no more than ten million dollars,
the New York itemized deduction shall be an amount equal to fifty
percent of any charitable contribution deduction allowed under section
one hundred seventy of the internal revenue code [for taxable years
beginning after two thousand nine and before two thousand eighteen. With
respect to an individual whose New York adjusted gross income is over
one million dollars, the New York itemized deduction shall be an amount
equal to fifty percent of any charitable contribution deduction allowed
under section one hundred seventy of the internal revenue code for taxa-
ble years beginning in two thousand nine or after two thousand seven-
teen].
(2) With respect to an individual whose New York adjusted gross income
is over ten million dollars, the New York itemized deduction shall be an
amount equal to twenty-five percent of any charitable contribution
deduction allowed under section one hundred seventy of the internal
revenue code [for taxable years beginning after two thousand nine and
ending before two thousand eighteen].
§ 3. This act shall take effect immediately.
PART T
Section 1. Subsection (c) of section 606 of the tax law is amended by
adding a new paragraph (1-a) to read as follows:
(1-A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SEVENTEEN, FOR A
TAXPAYER WITH NEW YORK ADJUSTED GROSS INCOME OF AT LEAST FIFTY THOUSAND
DOLLARS BUT LESS THAN ONE HUNDRED FIFTY THOUSAND DOLLARS, THE APPLICABLE
PERCENTAGE SHALL BE THE APPLICABLE PERCENTAGE OTHERWISE COMPUTED UNDER
PARAGRAPH ONE OF THIS SUBSECTION MULTIPLIED BY A FACTOR AS FOLLOWS:
IF NEW YORK ADJUSTED GROSS
INCOME IS: THE FACTOR IS:
AT LEAST $50,000 AND LESS
THAN $55,000 1.1682
AT LEAST $55,000 AND LESS
THAN $60,000 1.2733
AT LEAST $60,000 AND LESS
THAN $65,000 2.322
AT LEAST $65,000 AND LESS
S. 2009 58 A. 3009
THAN $150,000 3.000
§ 2. This act shall take effect immediately.
PART U
Section 1. Paragraph (a) of subdivision 1 and paragraph (a) of subdi-
vision 2 of section 1701 of the tax law, as added by section 1 of part
CC-1 of chapter 57 of the laws of 2008, are amended to read as follows:
(a) "Debt" means [all] PAST-DUE TAX liabilities, including unpaid tax,
interest, and penalty, that the commissioner is required by law to
collect and that have [been reduced to judgment by the docketing of a
New York state tax warrant in the office of a county clerk located in
the state of New York or by the filing of a copy of the warrant in the
office of the department of state] BECOME FIXED AND FINAL SUCH THAT THE
TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW.
(a) To assist the commissioner in the collection of debts, the depart-
ment must develop and operate a financial institution data match system
for the purpose of identifying and seizing the non-exempt assets of tax
debtors as identified by the commissioner. The commissioner is author-
ized to designate a third party to develop and operate this system.
NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS CHAPTER, THE COMMISSIONER
IS AUTHORIZED TO DISCLOSE THE DEBT AND THE DEBTOR INFORMATION TO SUCH
THIRD PARTY AND TO FINANCIAL INSTITUTIONS FOR PURPOSES OF THIS SYSTEM.
Any third party designated by the commissioner to develop and operate a
financial data match system must keep all information it obtains from
both the department and the financial institution confidential, and any
employee, agent or representative of that third party is prohibited from
disclosing that information to anyone other than the department or the
financial institution.
§ 2. This act shall take effect immediately.
PART V
Section 1. Subdivision 4 of section 50 of the civil service law is
amended by adding a new closing paragraph to read as follows:
THE DEPARTMENT SHALL REQUIRE A TAX CLEARANCE FROM THE DEPARTMENT OF
TAXATION AND FINANCE, AS PROVIDED FOR IN SECTION ONE HUNDRED SEVENTY-
ONE-W OF THE TAX LAW, FOR EACH APPLICANT AND SHALL REFUSE TO EXAMINE AN
APPLICANT, OR AFTER EXAMINATION TO CERTIFY AN ELIGIBLE FOR WHOM TAX
CLEARANCE IS DENIED BY THE DEPARTMENT OF TAXATION AND FINANCE. A MUNIC-
IPAL COMMISSION, SUBJECT TO THE APPROVAL OF THE GOVERNING BOARD OR BODY
OF THE CITY OR COUNTY AS THE CASE MAY BE, OR A REGIONAL COMMISSION OR
PERSONNEL OFFICER, PURSUANT TO GOVERNMENTAL AGREEMENT, MAY ELECT TO
REQUIRE TAX CLEARANCES FOR APPLICANTS AND TO REFUSE TO EXAMINE AN APPLI-
CANT, OR AFTER EXAMINATION TO CERTIFY AN ELIGIBLE FOR WHOM A TAX CLEAR-
ANCE IS DENIED BY THE DEPARTMENT OF TAXATION AND FINANCE. PROVIDED,
HOWEVER, THAT THE DEPARTMENT AND MUNICIPAL COMMISSIONS SHALL NOT REQUIRE
A TAX CLEARANCE FOR (1) ANY CURRENT EMPLOYEE; OR (2) A PERSON WHO IS
CONSIDERED AN APPLICANT BY REASON OF (A) A TRANSFER PURSUANT TO SECTION
SEVENTY OF THIS CHAPTER; OR (B) A PERSON WHO IS ON A PREFERRED LIST
SUBJECT TO SECTION EIGHTY-ONE OF THIS CHAPTER; OR (C) A PERSON WHOSE
NAME IS ON AN ELIGIBLE LIST AS DEFINED IN SECTION FIFTY-SIX OF THIS
ARTICLE AND WHO HAS SUCCESSFULLY COMPLETED A PROMOTION EXAM SUBJECT TO
SECTION FIFTY-TWO OF THIS ARTICLE. WHERE A TAX CLEARANCE IS REQUIRED,
THE APPLICATION FOR EXAMINATION, OR THE INSTRUCTIONS FOR SUCH APPLICA-
TION, SHALL CLEARLY INFORM THE APPLICANT THAT A TAX CLEARANCE WILL BE
S. 2009 59 A. 3009
PERFORMED AND THAT, IF THE TAX CLEARANCE IS DENIED, THE APPLICANT MUST
CONTACT THE DEPARTMENT OF TAXATION AND FINANCE TO RESOLVE ANY PAST-DUE
TAX LIABILITIES OR RETURN FILING COMPLIANCE BEFORE THE APPLICATION FOR
EXAMINATION MAY BE RESUBMITTED. ANY APPLICANT SUBJECT TO TAX CLEARANCE
SHALL BE REQUIRED TO PROVIDE ANY INFORMATION DEEMED NECESSARY BY THE
DEPARTMENT AND THE DEPARTMENT OF TAXATION AND FINANCE TO EFFICIENTLY AND
ACCURATELY PROVIDE A TAX CLEARANCE, AND THE FAILURE BY THE APPLICANT TO
PROVIDE SUCH INFORMATION SHALL DISQUALIFY THE APPLICANT.
§ 2. The tax law is amended by adding a new section 171-w to read as
follows:
§ 171-W. ENFORCEMENT OF DELINQUENT TAX LIABILITIES THROUGH TAX CLEAR-
ANCES. (1) FOR THE PURPOSES OF THIS SECTION, THE TERM "TAX LIABILITIES"
SHALL MEAN ANY TAX, SURCHARGE, OR FEE ADMINISTERED BY THE COMMISSIONER,
OR ANY PENALTY OR INTEREST ON SUCH TAX, SURCHARGE, OR FEE, OWED BY AN
INDIVIDUAL OR ENTITY. THE TERM "PAST-DUE TAX LIABILITIES" MEANS ANY
UNPAID TAX LIABILITIES THAT HAVE BECOME FIXED AND FINAL SUCH THAT THE
TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW.
THE TERM "GOVERNMENT ENTITY" MEANS THE STATE OF NEW YORK, OR ANY OF ITS
AGENCIES, POLITICAL SUBDIVISIONS, INSTRUMENTALITIES, PUBLIC CORPORATIONS
(INCLUDING A PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT
WITH ANOTHER STATE OR CANADA), OR COMBINATION THEREOF.
(2) THE COMMISSIONER, OR HIS OR HER DESIGNEE, SHALL COOPERATE WITH ANY
GOVERNMENT ENTITY THAT IS REQUIRED BY LAW OR HAS ELECTED TO REQUIRE TAX
CLEARANCES TO ESTABLISH PROCEDURES BY WHICH THE DEPARTMENT SHALL RECEIVE
A TAX CLEARANCE REQUEST AND TRANSMIT SUCH TAX CLEARANCE TO THE GOVERN-
MENT ENTITY, AND ANY OTHER PROCEDURES DEEMED NECESSARY TO CARRY OUT THE
PROVISIONS OF THIS SECTION. THESE PROCEDURES SHALL, TO THE EXTENT PRAC-
TICABLE, REQUIRE SECURE ELECTRONIC COMMUNICATION BETWEEN THE DEPARTMENT
AND THE REQUESTING GOVERNMENT ENTITY FOR THE TRANSMISSION OF TAX CLEAR-
ANCE REQUESTS TO THE DEPARTMENT AND TRANSMISSION OF TAX CLEARANCES TO
THE REQUESTING ENTITY. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, A
GOVERNMENT ENTITY SHALL BE AUTHORIZED TO SHARE ANY APPLICANT DATA OR
INFORMATION WITH THE DEPARTMENT THAT IS NECESSARY TO ENSURE THE PROPER
MATCHING OF THE APPLICANT TO THE TAX RECORDS MAINTAINED BY THE DEPART-
MENT.
(3) UPON RECEIPT OF A TAX CLEARANCE REQUEST, THE DEPARTMENT SHALL
EXAMINE ITS RECORDS TO DETERMINE WHETHER THE SUBJECT OF THE TAX CLEAR-
ANCE REQUEST HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN EXCESS OF THE
DOLLAR THRESHOLD APPLICABLE FOR SUCH TAX CLEARANCE REQUEST OR, WERE NO
THRESHOLD HAS BEEN ESTABLISHED BY LAW OR OTHERWISE, EQUAL TO OR IN
EXCESS OF FIVE HUNDRED DOLLARS. WHEN A TAX CLEARANCE REQUEST SO
REQUIRES, THE DEPARTMENT SHALL ALSO DETERMINE WHETHER (I) THE SUBJECT OF
SUCH REQUEST HAS COMPLIED WITH APPLICABLE TAX RETURN FILING REQUIREMENTS
FOR EACH OF THE PAST THREE YEARS; AND/OR (II) WHETHER A SUBJECT OF SUCH
REQUEST THAT IS AN INDIVIDUAL OR ENTITY THAT IS A PERSON REQUIRED TO
REGISTER PURSUANT TO SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER
IS REGISTERED PURSUANT TO SUCH SECTION. THE DEPARTMENT SHALL DENY A TAX
CLEARANCE IF IT DETERMINES THAT THE SUBJECT OF A TAX CLEARANCE REQUEST
HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN EXCESS OF THE APPLICABLE
THRESHOLD OR, WHEN THE TAX CLEARANCE REQUEST SO REQUIRES, HAS NOT
COMPLIED WITH APPLICABLE RETURN FILING AND/OR REGISTRATION REQUIREMENTS.
(4) IF A TAX CLEARANCE IS DENIED, THE GOVERNMENT ENTITY THAT REQUESTED
THE CLEARANCE SHALL PROVIDE NOTICE TO THE APPLICANT TO CONTACT THE
DEPARTMENT. SUCH NOTICE SHALL BE MADE BY FIRST CLASS MAIL WITH A CERTIF-
ICATE OF MAILING AND A COPY OF SUCH NOTICE ALSO SHALL BE PROVIDED TO THE
DEPARTMENT. WHEN THE APPLICANT CONTACTS THE DEPARTMENT, THE DEPARTMENT
S. 2009 60 A. 3009
SHALL INFORM THE APPLICANT OF THE BASIS FOR THE DENIAL OF THE TAX CLEAR-
ANCE AND SHALL ALSO INFORM THE APPLICANT (I) THAT A TAX CLEARANCE DENIED
DUE TO PAST-DUE TAX LIABILITIES MAY BE ISSUED ONCE THE TAXPAYER FULLY
SATISFIES PAST-DUE TAX LIABILITIES OR MAKES PAYMENT ARRANGEMENTS SATIS-
FACTORY TO THE COMMISSIONER; (II) THAT A TAX CLEARANCE DENIED DUE TO
FAILURE TO FILE TAX RETURNS MAY BE ISSUED ONCE THE APPLICANT HAS SATIS-
FIED THE APPLICABLE RETURN FILING REQUIREMENTS; (III) THAT A TAX CLEAR-
ANCE DENIED FOR FAILURE TO REGISTER PURSUANT TO SECTION ELEVEN HUNDRED
THIRTY-FOUR OF THIS CHAPTER MAY BE ISSUED ONCE THE APPLICANT HAS REGIS-
TERED PURSUANT TO SUCH SECTION; AND (IV) THE GROUNDS FOR CHALLENGING THE
DENIAL OF A TAX CLEARANCE LISTED IN SUBDIVISION FIVE OF THIS SECTION.
(5) (A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AND EXCEPT AS
SPECIFICALLY PROVIDED HEREIN, AN APPLICANT DENIED A TAX CLEARANCE SHALL
HAVE NO RIGHT TO COMMENCE A COURT ACTION OR PROCEEDING OR SEEK ANY OTHER
LEGAL RECOURSE AGAINST THE DEPARTMENT OR THE GOVERNMENT ENTITY RELATED
TO THE DENIAL OF A TAX CLEARANCE BY THE DEPARTMENT.
(B) AN APPLICANT SEEKING TO CHALLENGE THE DENIAL OF A TAX CLEARANCE
MUST PROTEST TO THE DEPARTMENT OR THE DIVISION OF TAX APPEALS NO LATER
THAN SIXTY DAYS FROM THE DATE OF THE NOTIFICATION TO THE APPLICANT THAT
THE TAX CLEARANCE WAS DENIED. AN APPLICANT MAY CHALLENGE A DEPARTMENT
FINDING OF PAST-DUE TAX LIABILITIES ONLY ON THE GROUNDS THAT (I) THE
INDIVIDUAL OR ENTITY DENIED THE TAX CLEARANCE IS NOT THE INDIVIDUAL OR
ENTITY WITH THE PAST-DUE TAX LIABILITIES AT ISSUE; (II) THE PAST-DUE TAX
LIABILITIES WERE SATISFIED; (III) THE APPLICANT'S WAGES ARE BEING
GARNISHED FOR THE PAYMENT OF CHILD SUPPORT OR COMBINED CHILD AND SPOUSAL
SUPPORT PURSUANT TO AN INCOME EXECUTION ISSUED PURSUANT TO SECTION FIFTY
TWO HUNDRED FORTY-ONE OR FIFTY TWO HUNDRED FORTY-TWO OF THE CIVIL PRAC-
TICE LAW AND RULES OR ANOTHER STATE'S INCOME WITHHOLDING ORDER AS
AUTHORIZED UNDER PART FIVE OF ARTICLE FIVE-B OF THE FAMILY COURT ACT, OR
GARNISHED BY THE DEPARTMENT FOR THE PAYMENT OF THE PAST-DUE TAX LIABIL-
ITIES AT ISSUE; OR (IV) THE APPLICANT IS MAKING CHILD SUPPORT PAYMENTS
OR COMBINED CHILD AND SPOUSAL SUPPORT PAYMENTS PURSUANT TO A SATISFAC-
TORY PAYMENT ARRANGEMENT UNDER SECTION ONE HUNDRED ELEVEN-B OF THE
SOCIAL SERVICES LAW WITH A SUPPORT COLLECTION UNIT OR OTHERWISE MAKING
PERIODIC PAYMENTS IN ACCORDANCE WITH SECTION FOUR HUNDRED FORTY OF THE
FAMILY COURT ACT. AN APPLICANT MAY CHALLENGE A DEPARTMENT FINDING OF
FAILURE TO COMPLY WITH TAX RETURN FILING REQUIREMENTS ONLY ON THE
GROUNDS THAT ALL REQUIRED TAX RETURNS HAVE BEEN FILED FOR EACH OF THE
PAST THREE YEARS.
(C) NOTHING IN THIS SUBDIVISION IS INTENDED TO LIMIT ANY APPLICANT
FROM SEEKING RELIEF FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION
SIX HUNDRED FIFTY-FOUR OF THIS CHAPTER, TO THE EXTENT THAT HE OR SHE IS
ELIGIBLE PURSUANT TO THAT SECTION, OR ESTABLISHING TO THE DEPARTMENT
THAT THE ENFORCEMENT OF THE UNDERLYING TAX LIABILITIES HAS BEEN STAYED
BY THE FILING OF A PETITION PURSUANT TO THE BANKRUPTCY CODE OF 1978
(TITLE ELEVEN OF THE UNITED STATES CODE).
(6) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE DEPARTMENT MAY
EXCHANGE WITH A GOVERNMENT ENTITY ANY DATA OR INFORMATION THAT, IN THE
DISCRETION OF THE COMMISSIONER, IS NECESSARY FOR THE IMPLEMENTATION OF A
TAX CLEARANCE REQUIREMENT. HOWEVER, NO GOVERNMENT ENTITY MAY RE-DISCLOSE
THIS INFORMATION TO ANY OTHER ENTITY OR PERSON, OTHER THAN FOR THE
PURPOSE OF INFORMING THE APPLICANT THAT A REQUIRED TAX CLEARANCE HAS
BEEN DENIED, UNLESS OTHERWISE PERMITTED BY LAW.
(7) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE ACTIVITIES TO
COLLECT PAST-DUE TAX LIABILITIES UNDERTAKEN BY THE DEPARTMENT PURSUANT
TO THIS SECTION SHALL NOT IN ANY WAY LIMIT, RESTRICT OR IMPAIR THE
S. 2009 61 A. 3009
DEPARTMENT FROM EXERCISING ANY OTHER AUTHORITY TO COLLECT OR ENFORCE TAX
LIABILITIES UNDER ANY OTHER APPLICABLE PROVISION OF LAW.
§ 3. This act shall take effect June 1, 2017; provided, however, that
the department of taxation and finance, the department of civil service,
any municipal commission, and any other government entity electing to
receive a tax clearance from the department of taxation and finance may
work to execute the necessary procedures and technical changes to
support the tax clearance process as described in sections one and two
of this act before that date; provided, further, that this effective
date will not impact the administration of any tax clearance program
authorized by another provision of law.
PART W
Section 1. Paragraph (a) of subdivision 1 of section 18 of chapter 266
of the laws of 1986, amending the civil practice law and rules and other
laws relating to malpractice and professional medical conduct, as
amended by section 2 of part C of chapter 59 of the laws of 2016, is
amended to read as follows:
(a) The superintendent of financial services and the commissioner of
health or their designee shall, from funds available in the hospital
excess liability pool created pursuant to subdivision 5 of this section,
purchase a policy or policies for excess insurance coverage, as author-
ized by paragraph 1 of subsection (e) of section 5502 of the insurance
law; or from an insurer, other than an insurer described in section 5502
of the insurance law, duly authorized to write such coverage and actual-
ly writing medical malpractice insurance in this state; or shall
purchase equivalent excess coverage in a form previously approved by the
superintendent of financial services for purposes of providing equiv-
alent excess coverage in accordance with section 19 of chapter 294 of
the laws of 1985, for medical or dental malpractice occurrences between
July 1, 1986 and June 30, 1987, between July 1, 1987 and June 30, 1988,
between July 1, 1988 and June 30, 1989, between July 1, 1989 and June
30, 1990, between July 1, 1990 and June 30, 1991, between July 1, 1991
and June 30, 1992, between July 1, 1992 and June 30, 1993, between July
1, 1993 and June 30, 1994, between July 1, 1994 and June 30, 1995,
between July 1, 1995 and June 30, 1996, between July 1, 1996 and June
30, 1997, between July 1, 1997 and June 30, 1998, between July 1, 1998
and June 30, 1999, between July 1, 1999 and June 30, 2000, between July
1, 2000 and June 30, 2001, between July 1, 2001 and June 30, 2002,
between July 1, 2002 and June 30, 2003, between July 1, 2003 and June
30, 2004, between July 1, 2004 and June 30, 2005, between July 1, 2005
and June 30, 2006, between July 1, 2006 and June 30, 2007, between July
1, 2007 and June 30, 2008, between July 1, 2008 and June 30, 2009,
between July 1, 2009 and June 30, 2010, between July 1, 2010 and June
30, 2011, between July 1, 2011 and June 30, 2012, between July 1, 2012
and June 30, 2013, between July 1, 2013 and June 30, 2014, between July
1, 2014 and June 30, 2015, between July 1, 2015 and June 30, 2016, [and]
between July 1, 2016 and June 30, 2017, AND BETWEEN JULY 1, 2017 AND
JUNE 30, 2018 or reimburse the hospital where the hospital purchases
equivalent excess coverage as defined in subparagraph (i) of paragraph
(a) of subdivision 1-a of this section for medical or dental malpractice
occurrences between July 1, 1987 and June 30, 1988, between July 1, 1988
and June 30, 1989, between July 1, 1989 and June 30, 1990, between July
1, 1990 and June 30, 1991, between July 1, 1991 and June 30, 1992,
between July 1, 1992 and June 30, 1993, between July 1, 1993 and June
S. 2009 62 A. 3009
30, 1994, between July 1, 1994 and June 30, 1995, between July 1, 1995
and June 30, 1996, between July 1, 1996 and June 30, 1997, between July
1, 1997 and June 30, 1998, between July 1, 1998 and June 30, 1999,
between July 1, 1999 and June 30, 2000, between July 1, 2000 and June
30, 2001, between July 1, 2001 and June 30, 2002, between July 1, 2002
and June 30, 2003, between July 1, 2003 and June 30, 2004, between July
1, 2004 and June 30, 2005, between July 1, 2005 and June 30, 2006,
between July 1, 2006 and June 30, 2007, between July 1, 2007 and June
30, 2008, between July 1, 2008 and June 30, 2009, between July 1, 2009
and June 30, 2010, between July 1, 2010 and June 30, 2011, between July
1, 2011 and June 30, 2012, between July 1, 2012 and June 30, 2013,
between July 1, 2013 and June 30, 2014, between July 1, 2014 and June
30, 2015, between July 1, 2015 and June 30, 2016, [and] between July 1,
2016 and June 30, 2017, AND BETWEEN JULY 1, 2017 AND JUNE 30, 2018 for
physicians or dentists certified as eligible for each such period or
periods pursuant to subdivision 2 of this section by a general hospital
licensed pursuant to article 28 of the public health law; provided that
no single insurer shall write more than fifty percent of the total
excess premium for a given policy year; and provided, however, that such
eligible physicians or dentists must have in force an individual policy,
from an insurer licensed in this state of primary malpractice insurance
coverage in amounts of no less than one million three hundred thousand
dollars for each claimant and three million nine hundred thousand
dollars for all claimants under that policy during the period of such
excess coverage for such occurrences or be endorsed as additional
insureds under a hospital professional liability policy which is offered
through a voluntary attending physician ("channeling") program previous-
ly permitted by the superintendent of financial services during the
period of such excess coverage for such occurrences; AND PROVIDED THAT
SUCH ELIGIBLE PHYSICIANS OR DENTISTS HAVE RECEIVED TAX CLEARANCES FROM
THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO SECTION 171-W OF THE
TAX LAW. During such period, such policy for excess coverage or such
equivalent excess coverage shall, when combined with the physician's or
dentist's primary malpractice insurance coverage or coverage provided
through a voluntary attending physician ("channeling") program, total an
aggregate level of two million three hundred thousand dollars for each
claimant and six million nine hundred thousand dollars for all claimants
from all such policies with respect to occurrences in each of such years
provided, however, if the cost of primary malpractice insurance coverage
in excess of one million dollars, but below the excess medical malprac-
tice insurance coverage provided pursuant to this act, exceeds the rate
of nine percent per annum, then the required level of primary malprac-
tice insurance coverage in excess of one million dollars for each claim-
ant shall be in an amount of not less than the dollar amount of such
coverage available at nine percent per annum; the required level of such
coverage for all claimants under that policy shall be in an amount not
less than three times the dollar amount of coverage for each claimant;
and excess coverage, when combined with such primary malpractice insur-
ance coverage, shall increase the aggregate level for each claimant by
one million dollars and three million dollars for all claimants; and
provided further, that, with respect to policies of primary medical
malpractice coverage that include occurrences between April 1, 2002 and
June 30, 2002, such requirement that coverage be in amounts no less than
one million three hundred thousand dollars for each claimant and three
million nine hundred thousand dollars for all claimants for such occur-
rences shall be effective April 1, 2002.
S. 2009 63 A. 3009
§ 2. Subdivision 3 of section 18 of chapter 266 of the laws of 1986,
amending the civil practice law and rules and other laws relating to
malpractice and professional medical conduct, as amended by section 3 of
part C of chapter 59 of the laws of 2016, is amended to read as follows:
(3)(a) The superintendent of financial services shall determine and
certify to each general hospital and to the commissioner of health the
cost of excess malpractice insurance for medical or dental malpractice
occurrences between July 1, 1986 and June 30, 1987, between July 1, 1988
and June 30, 1989, between July 1, 1989 and June 30, 1990, between July
1, 1990 and June 30, 1991, between July 1, 1991 and June 30, 1992,
between July 1, 1992 and June 30, 1993, between July 1, 1993 and June
30, 1994, between July 1, 1994 and June 30, 1995, between July 1, 1995
and June 30, 1996, between July 1, 1996 and June 30, 1997, between July
1, 1997 and June 30, 1998, between July 1, 1998 and June 30, 1999,
between July 1, 1999 and June 30, 2000, between July 1, 2000 and June
30, 2001, between July 1, 2001 and June 30, 2002, between July 1, 2002
and June 30, 2003, between July 1, 2003 and June 30, 2004, between July
1, 2004 and June 30, 2005, between July 1, 2005 and June 30, 2006,
between July 1, 2006 and June 30, 2007, between July 1, 2007 and June
30, 2008, between July 1, 2008 and June 30, 2009, between July 1, 2009
and June 30, 2010, between July 1, 2010 and June 30, 2011, between July
1, 2011 and June 30, 2012, between July 1, 2012 and June 30, 2013, and
between July 1, 2013 and June 30, 2014, between July 1, 2014 and June
30, 2015, between July 1, 2015 and June 30, 2016, and between July 1,
2016 and June 30, 2017, AND BETWEEN JULY 1, 2017 AND JUNE 30, 2018 allo-
cable to each general hospital for physicians or dentists certified as
eligible for purchase of a policy for excess insurance coverage by such
general hospital in accordance with subdivision 2 of this section, and
may amend such determination and certification as necessary.
(b) The superintendent of financial services shall determine and
certify to each general hospital and to the commissioner of health the
cost of excess malpractice insurance or equivalent excess coverage for
medical or dental malpractice occurrences between July 1, 1987 and June
30, 1988, between July 1, 1988 and June 30, 1989, between July 1, 1989
and June 30, 1990, between July 1, 1990 and June 30, 1991, between July
1, 1991 and June 30, 1992, between July 1, 1992 and June 30, 1993,
between July 1, 1993 and June 30, 1994, between July 1, 1994 and June
30, 1995, between July 1, 1995 and June 30, 1996, between July 1, 1996
and June 30, 1997, between July 1, 1997 and June 30, 1998, between July
1, 1998 and June 30, 1999, between July 1, 1999 and June 30, 2000,
between July 1, 2000 and June 30, 2001, between July 1, 2001 and June
30, 2002, between July 1, 2002 and June 30, 2003, between July 1, 2003
and June 30, 2004, between July 1, 2004 and June 30, 2005, between July
1, 2005 and June 30, 2006, between July 1, 2006 and June 30, 2007,
between July 1, 2007 and June 30, 2008, between July 1, 2008 and June
30, 2009, between July 1, 2009 and June 30, 2010, between July 1, 2010
and June 30, 2011, between July 1, 2011 and June 30, 2012, between July
1, 2012 and June 30, 2013, between July 1, 2013 and June 30, 2014,
between July 1, 2014 and June 30, 2015, between July 1, 2015 and June
30, 2016, and between July 1, 2016 and June 30, 2017, AND BETWEEN JULY
1, 2017 AND JUNE 30, 2018 allocable to each general hospital for physi-
cians or dentists certified as eligible for purchase of a policy for
excess insurance coverage or equivalent excess coverage by such general
hospital in accordance with subdivision 2 of this section, and may amend
such determination and certification as necessary. The superintendent of
financial services shall determine and certify to each general hospital
S. 2009 64 A. 3009
and to the commissioner of health the ratable share of such cost alloca-
ble to the period July 1, 1987 to December 31, 1987, to the period Janu-
ary 1, 1988 to June 30, 1988, to the period July 1, 1988 to December 31,
1988, to the period January 1, 1989 to June 30, 1989, to the period July
1, 1989 to December 31, 1989, to the period January 1, 1990 to June 30,
1990, to the period July 1, 1990 to December 31, 1990, to the period
January 1, 1991 to June 30, 1991, to the period July 1, 1991 to December
31, 1991, to the period January 1, 1992 to June 30, 1992, to the period
July 1, 1992 to December 31, 1992, to the period January 1, 1993 to June
30, 1993, to the period July 1, 1993 to December 31, 1993, to the period
January 1, 1994 to June 30, 1994, to the period July 1, 1994 to December
31, 1994, to the period January 1, 1995 to June 30, 1995, to the period
July 1, 1995 to December 31, 1995, to the period January 1, 1996 to June
30, 1996, to the period July 1, 1996 to December 31, 1996, to the period
January 1, 1997 to June 30, 1997, to the period July 1, 1997 to December
31, 1997, to the period January 1, 1998 to June 30, 1998, to the period
July 1, 1998 to December 31, 1998, to the period January 1, 1999 to June
30, 1999, to the period July 1, 1999 to December 31, 1999, to the period
January 1, 2000 to June 30, 2000, to the period July 1, 2000 to December
31, 2000, to the period January 1, 2001 to June 30, 2001, to the period
July 1, 2001 to June 30, 2002, to the period July 1, 2002 to June 30,
2003, to the period July 1, 2003 to June 30, 2004, to the period July 1,
2004 to June 30, 2005, to the period July 1, 2005 and June 30, 2006, to
the period July 1, 2006 and June 30, 2007, to the period July 1, 2007
and June 30, 2008, to the period July 1, 2008 and June 30, 2009, to the
period July 1, 2009 and June 30, 2010, to the period July 1, 2010 and
June 30, 2011, to the period July 1, 2011 and June 30, 2012, to the
period July 1, 2012 and June 30, 2013, to the period July 1, 2013 and
June 30, 2014, to the period July 1, 2014 and June 30, 2015, to the
period July 1, 2015 and June 30, 2016, and between July 1, 2016 and June
30, 2017, AND TO THE PERIOD JULY 1, 2017 AND JUNE 30, 2018.
§ 3. Paragraphs (a), (b), (c), (d) and (e) of subdivision 8 of section
18 of chapter 266 of the laws of 1986, amending the civil practice law
and rules and other laws relating to malpractice and professional
medical conduct, as amended by section 4 of part C of chapter 59 of the
laws of 2016, are amended to read as follows:
(a) To the extent funds available to the hospital excess liability
pool pursuant to subdivision 5 of this section as amended, and pursuant
to section 6 of part J of chapter 63 of the laws of 2001, as may from
time to time be amended, which amended this subdivision, are insuffi-
cient to meet the costs of excess insurance coverage or equivalent
excess coverage for coverage periods during the period July 1, 1992 to
June 30, 1993, during the period July 1, 1993 to June 30, 1994, during
the period July 1, 1994 to June 30, 1995, during the period July 1, 1995
to June 30, 1996, during the period July 1, 1996 to June 30, 1997,
during the period July 1, 1997 to June 30, 1998, during the period July
1, 1998 to June 30, 1999, during the period July 1, 1999 to June 30,
2000, during the period July 1, 2000 to June 30, 2001, during the period
July 1, 2001 to October 29, 2001, during the period April 1, 2002 to
June 30, 2002, during the period July 1, 2002 to June 30, 2003, during
the period July 1, 2003 to June 30, 2004, during the period July 1, 2004
to June 30, 2005, during the period July 1, 2005 to June 30, 2006,
during the period July 1, 2006 to June 30, 2007, during the period July
1, 2007 to June 30, 2008, during the period July 1, 2008 to June 30,
2009, during the period July 1, 2009 to June 30, 2010, during the period
July 1, 2010 to June 30, 2011, during the period July 1, 2011 to June
S. 2009 65 A. 3009
30, 2012, during the period July 1, 2012 to June 30, 2013, during the
period July 1, 2013 to June 30, 2014, during the period July 1, 2014 to
June 30, 2015, during the period July 1, 2015 and June 30, 2016, [and
between] DURING THE PERIOD July 1, 2016 and June 30, 2017, AND DURING
THE PERIOD JULY 1, 2017 AND JUNE 30, 2018 allocated or reallocated in
accordance with paragraph (a) of subdivision 4-a of this section to
rates of payment applicable to state governmental agencies, each physi-
cian or dentist for whom a policy for excess insurance coverage or
equivalent excess coverage is purchased for such period shall be respon-
sible for payment to the provider of excess insurance coverage or equiv-
alent excess coverage of an allocable share of such insufficiency, based
on the ratio of the total cost of such coverage for such physician to
the sum of the total cost of such coverage for all physicians applied to
such insufficiency.
(b) Each provider of excess insurance coverage or equivalent excess
coverage covering the period July 1, 1992 to June 30, 1993, or covering
the period July 1, 1993 to June 30, 1994, or covering the period July 1,
1994 to June 30, 1995, or covering the period July 1, 1995 to June 30,
1996, or covering the period July 1, 1996 to June 30, 1997, or covering
the period July 1, 1997 to June 30, 1998, or covering the period July 1,
1998 to June 30, 1999, or covering the period July 1, 1999 to June 30,
2000, or covering the period July 1, 2000 to June 30, 2001, or covering
the period July 1, 2001 to October 29, 2001, or covering the period
April 1, 2002 to June 30, 2002, or covering the period July 1, 2002 to
June 30, 2003, or covering the period July 1, 2003 to June 30, 2004, or
covering the period July 1, 2004 to June 30, 2005, or covering the peri-
od July 1, 2005 to June 30, 2006, or covering the period July 1, 2006 to
June 30, 2007, or covering the period July 1, 2007 to June 30, 2008, or
covering the period July 1, 2008 to June 30, 2009, or covering the peri-
od July 1, 2009 to June 30, 2010, or covering the period July 1, 2010 to
June 30, 2011, or covering the period July 1, 2011 to June 30, 2012, or
covering the period July 1, 2012 to June 30, 2013, or covering the peri-
od July 1, 2013 to June 30, 2014, or covering the period July 1, 2014 to
June 30, 2015, or covering the period July 1, 2015 to June 30, 2016, or
covering the period July 1, 2016 to June 30, 2017, OR COVERING THE PERI-
OD JULY 1, 2017 TO JUNE 30, 2018 shall notify a covered physician or
dentist by mail, mailed to the address shown on the last application for
excess insurance coverage or equivalent excess coverage, of the amount
due to such provider from such physician or dentist for such coverage
period determined in accordance with paragraph (a) of this subdivision.
Such amount shall be due from such physician or dentist to such provider
of excess insurance coverage or equivalent excess coverage in a time and
manner determined by the superintendent of financial services.
(c) If a physician or dentist liable for payment of a portion of the
costs of excess insurance coverage or equivalent excess coverage cover-
ing the period July 1, 1992 to June 30, 1993, or covering the period
July 1, 1993 to June 30, 1994, or covering the period July 1, 1994 to
June 30, 1995, or covering the period July 1, 1995 to June 30, 1996, or
covering the period July 1, 1996 to June 30, 1997, or covering the peri-
od July 1, 1997 to June 30, 1998, or covering the period July 1, 1998 to
June 30, 1999, or covering the period July 1, 1999 to June 30, 2000, or
covering the period July 1, 2000 to June 30, 2001, or covering the peri-
od July 1, 2001 to October 29, 2001, or covering the period April 1,
2002 to June 30, 2002, or covering the period July 1, 2002 to June 30,
2003, or covering the period July 1, 2003 to June 30, 2004, or covering
the period July 1, 2004 to June 30, 2005, or covering the period July 1,
S. 2009 66 A. 3009
2005 to June 30, 2006, or covering the period July 1, 2006 to June 30,
2007, or covering the period July 1, 2007 to June 30, 2008, or covering
the period July 1, 2008 to June 30, 2009, or covering the period July 1,
2009 to June 30, 2010, or covering the period July 1, 2010 to June 30,
2011, or covering the period July 1, 2011 to June 30, 2012, or covering
the period July 1, 2012 to June 30, 2013, or covering the period July 1,
2013 to June 30, 2014, or covering the period July 1, 2014 to June 30,
2015, or covering the period July 1, 2015 to June 30, 2016, or covering
the period July 1, 2016 to June 30, 2017, OR COVERING THE PERIOD JULY 1,
2017 TO JUNE 30, 2018 determined in accordance with paragraph (a) of
this subdivision fails, refuses or neglects to make payment to the
provider of excess insurance coverage or equivalent excess coverage in
such time and manner as determined by the superintendent of financial
services pursuant to paragraph (b) of this subdivision, excess insurance
coverage or equivalent excess coverage purchased for such physician or
dentist in accordance with this section for such coverage period shall
be cancelled and shall be null and void as of the first day on or after
the commencement of a policy period where the liability for payment
pursuant to this subdivision has not been met.
(d) Each provider of excess insurance coverage or equivalent excess
coverage shall notify the superintendent of financial services and the
commissioner of health or their designee of each physician and dentist
eligible for purchase of a policy for excess insurance coverage or
equivalent excess coverage covering the period July 1, 1992 to June 30,
1993, or covering the period July 1, 1993 to June 30, 1994, or covering
the period July 1, 1994 to June 30, 1995, or covering the period July 1,
1995 to June 30, 1996, or covering the period July 1, 1996 to June 30,
1997, or covering the period July 1, 1997 to June 30, 1998, or covering
the period July 1, 1998 to June 30, 1999, or covering the period July 1,
1999 to June 30, 2000, or covering the period July 1, 2000 to June 30,
2001, or covering the period July 1, 2001 to October 29, 2001, or cover-
ing the period April 1, 2002 to June 30, 2002, or covering the period
July 1, 2002 to June 30, 2003, or covering the period July 1, 2003 to
June 30, 2004, or covering the period July 1, 2004 to June 30, 2005, or
covering the period July 1, 2005 to June 30, 2006, or covering the peri-
od July 1, 2006 to June 30, 2007, or covering the period July 1, 2007 to
June 30, 2008, or covering the period July 1, 2008 to June 30, 2009, or
covering the period July 1, 2009 to June 30, 2010, or covering the peri-
od July 1, 2010 to June 30, 2011, or covering the period July 1, 2011 to
June 30, 2012, or covering the period July 1, 2012 to June 30, 2013, or
covering the period July 1, 2013 to June 30, 2014, or covering the peri-
od July 1, 2014 to June 30, 2015, or covering the period July 1, 2015 to
June 30, 2016, or covering the period July 1, 2016 to June 30, 2017, OR
COVERING THE PERIOD JULY 1, 2017 TO JUNE 30, 2018 that has made payment
to such provider of excess insurance coverage or equivalent excess
coverage in accordance with paragraph (b) of this subdivision and of
each physician and dentist who has failed, refused or neglected to make
such payment.
(e) A provider of excess insurance coverage or equivalent excess
coverage shall refund to the hospital excess liability pool any amount
allocable to the period July 1, 1992 to June 30, 1993, and to the period
July 1, 1993 to June 30, 1994, and to the period July 1, 1994 to June
30, 1995, and to the period July 1, 1995 to June 30, 1996, and to the
period July 1, 1996 to June 30, 1997, and to the period July 1, 1997 to
June 30, 1998, and to the period July 1, 1998 to June 30, 1999, and to
the period July 1, 1999 to June 30, 2000, and to the period July 1, 2000
S. 2009 67 A. 3009
to June 30, 2001, and to the period July 1, 2001 to October 29, 2001,
and to the period April 1, 2002 to June 30, 2002, and to the period July
1, 2002 to June 30, 2003, and to the period July 1, 2003 to June 30,
2004, and to the period July 1, 2004 to June 30, 2005, and to the period
July 1, 2005 to June 30, 2006, and to the period July 1, 2006 to June
30, 2007, and to the period July 1, 2007 to June 30, 2008, and to the
period July 1, 2008 to June 30, 2009, and to the period July 1, 2009 to
June 30, 2010, and to the period July 1, 2010 to June 30, 2011, and to
the period July 1, 2011 to June 30, 2012, and to the period July 1, 2012
to June 30, 2013, and to the period July 1, 2013 to June 30, 2014, and
to the period July 1, 2014 to June 30, 2015, and to the period July 1,
2015 to June 30, 2016, [and] to the period July 1, 2016 to June 30,
2017, AND TO THE PERIOD JULY 1, 2017 TO JUNE 30, 2018 received from the
hospital excess liability pool for purchase of excess insurance coverage
or equivalent excess coverage covering the period July 1, 1992 to June
30, 1993, and covering the period July 1, 1993 to June 30, 1994, and
covering the period July 1, 1994 to June 30, 1995, and covering the
period July 1, 1995 to June 30, 1996, and covering the period July 1,
1996 to June 30, 1997, and covering the period July 1, 1997 to June 30,
1998, and covering the period July 1, 1998 to June 30, 1999, and cover-
ing the period July 1, 1999 to June 30, 2000, and covering the period
July 1, 2000 to June 30, 2001, and covering the period July 1, 2001 to
October 29, 2001, and covering the period April 1, 2002 to June 30,
2002, and covering the period July 1, 2002 to June 30, 2003, and cover-
ing the period July 1, 2003 to June 30, 2004, and covering the period
July 1, 2004 to June 30, 2005, and covering the period July 1, 2005 to
June 30, 2006, and covering the period July 1, 2006 to June 30, 2007,
and covering the period July 1, 2007 to June 30, 2008, and covering the
period July 1, 2008 to June 30, 2009, and covering the period July 1,
2009 to June 30, 2010, and covering the period July 1, 2010 to June 30,
2011, and covering the period July 1, 2011 to June 30, 2012, and cover-
ing the period July 1, 2012 to June 30, 2013, and covering the period
July 1, 2013 to June 30, 2014, and covering the period July 1, 2014 to
June 30, 2015, and covering the period July 1, 2015 to June 30, 2016,
and covering the period July 1, 2016 to June 30, 2017, AND COVERING THE
PERIOD JULY 1, 2017 TO JUNE 30, 2018 for a physician or dentist where
such excess insurance coverage or equivalent excess coverage is
cancelled in accordance with paragraph (c) of this subdivision.
§ 4. Section 40 of chapter 266 of the laws of 1986, amending the civil
practice law and rules and other laws relating to malpractice and
professional medical conduct, as amended by section 5 of part C of chap-
ter 59 of the laws of 2016, is amended to read as follows:
§ 40. The superintendent of financial services shall establish rates
for policies providing coverage for physicians and surgeons medical
malpractice for the periods commencing July 1, 1985 and ending June 30,
[2017] 2018; provided, however, that notwithstanding any other provision
of law, the superintendent shall not establish or approve any increase
in rates for the period commencing July 1, 2009 and ending June 30,
2010. The superintendent shall direct insurers to establish segregated
accounts for premiums, payments, reserves and investment income attrib-
utable to such premium periods and shall require periodic reports by the
insurers regarding claims and expenses attributable to such periods to
monitor whether such accounts will be sufficient to meet incurred claims
and expenses. On or after July 1, 1989, the superintendent shall impose
a surcharge on premiums to satisfy a projected deficiency that is
attributable to the premium levels established pursuant to this section
S. 2009 68 A. 3009
for such periods; provided, however, that such annual surcharge shall
not exceed eight percent of the established rate until July 1, [2017]
2018, at which time and thereafter such surcharge shall not exceed twen-
ty-five percent of the approved adequate rate, and that such annual
surcharges shall continue for such period of time as shall be sufficient
to satisfy such deficiency. The superintendent shall not impose such
surcharge during the period commencing July 1, 2009 and ending June 30,
2010. On and after July 1, 1989, the surcharge prescribed by this
section shall be retained by insurers to the extent that they insured
physicians and surgeons during the July 1, 1985 through June 30, [2017]
2018 policy periods; in the event and to the extent physicians and
surgeons were insured by another insurer during such periods, all or a
pro rata share of the surcharge, as the case may be, shall be remitted
to such other insurer in accordance with rules and regulations to be
promulgated by the superintendent. Surcharges collected from physicians
and surgeons who were not insured during such policy periods shall be
apportioned among all insurers in proportion to the premium written by
each insurer during such policy periods; if a physician or surgeon was
insured by an insurer subject to rates established by the superintendent
during such policy periods, and at any time thereafter a hospital,
health maintenance organization, employer or institution is responsible
for responding in damages for liability arising out of such physician's
or surgeon's practice of medicine, such responsible entity shall also
remit to such prior insurer the equivalent amount that would then be
collected as a surcharge if the physician or surgeon had continued to
remain insured by such prior insurer. In the event any insurer that
provided coverage during such policy periods is in liquidation, the
property/casualty insurance security fund shall receive the portion of
surcharges to which the insurer in liquidation would have been entitled.
The surcharges authorized herein shall be deemed to be income earned for
the purposes of section 2303 of the insurance law. The superintendent,
in establishing adequate rates and in determining any projected defi-
ciency pursuant to the requirements of this section and the insurance
law, shall give substantial weight, determined in his discretion and
judgment, to the prospective anticipated effect of any regulations
promulgated and laws enacted and the public benefit of stabilizing
malpractice rates and minimizing rate level fluctuation during the peri-
od of time necessary for the development of more reliable statistical
experience as to the efficacy of such laws and regulations affecting
medical, dental or podiatric malpractice enacted or promulgated in 1985,
1986, by this act and at any other time. Notwithstanding any provision
of the insurance law, rates already established and to be established by
the superintendent pursuant to this section are deemed adequate if such
rates would be adequate when taken together with the maximum authorized
annual surcharges to be imposed for a reasonable period of time whether
or not any such annual surcharge has been actually imposed as of the
establishment of such rates.
§ 5. Section 5 and subdivisions (a) and (e) of section 6 of part J of
chapter 63 of the laws of 2001, amending chapter 266 of the laws of
1986, amending the civil practice law and rules and other laws relating
to malpractice and professional medical conduct, as amended by section 6
of part C of chapter 59 of the laws of 2016, are amended to read as
follows:
§ 5. The superintendent of financial services and the commissioner of
health shall determine, no later than June 15, 2002, June 15, 2003, June
15, 2004, June 15, 2005, June 15, 2006, June 15, 2007, June 15, 2008,
S. 2009 69 A. 3009
June 15, 2009, June 15, 2010, June 15, 2011, June 15, 2012, June 15,
2013, June 15, 2014, June 15, 2015, June 15, 2016, [and] June 15, 2017,
AND JUNE 15, 2018 the amount of funds available in the hospital excess
liability pool, created pursuant to section 18 of chapter 266 of the
laws of 1986, and whether such funds are sufficient for purposes of
purchasing excess insurance coverage for eligible participating physi-
cians and dentists during the period July 1, 2001 to June 30, 2002, or
July 1, 2002 to June 30, 2003, or July 1, 2003 to June 30, 2004, or July
1, 2004 to June 30, 2005, or July 1, 2005 to June 30, 2006, or July 1,
2006 to June 30, 2007, or July 1, 2007 to June 30, 2008, or July 1, 2008
to June 30, 2009, or July 1, 2009 to June 30, 2010, or July 1, 2010 to
June 30, 2011, or July 1, 2011 to June 30, 2012, or July 1, 2012 to June
30, 2013, or July 1, 2013 to June 30, 2014, or July 1, 2014 to June 30,
2015, or July 1, 2015 to June 30, 2016, or July 1, 2016 to June 30,
2017, OR TO JULY 1, 2017 TO JUNE 30, 2018 as applicable.
(a) This section shall be effective only upon a determination, pursu-
ant to section five of this act, by the superintendent of financial
services and the commissioner of health, and a certification of such
determination to the state director of the budget, the chair of the
senate committee on finance and the chair of the assembly committee on
ways and means, that the amount of funds in the hospital excess liabil-
ity pool, created pursuant to section 18 of chapter 266 of the laws of
1986, is insufficient for purposes of purchasing excess insurance cover-
age for eligible participating physicians and dentists during the period
July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30, 2003, or July
1, 2003 to June 30, 2004, or July 1, 2004 to June 30, 2005, or July 1,
2005 to June 30, 2006, or July 1, 2006 to June 30, 2007, or July 1, 2007
to June 30, 2008, or July 1, 2008 to June 30, 2009, or July 1, 2009 to
June 30, 2010, or July 1, 2010 to June 30, 2011, or July 1, 2011 to June
30, 2012, or July 1, 2012 to June 30, 2013, or July 1, 2013 to June 30,
2014, or July 1, 2014 to June 30, 2015, or July 1, 2015 to June 30,
2016, or July 1, 2016 to June 30, 2017, OR JULY 1, 2017 TO JUNE 30, 2018
as applicable.
(e) The commissioner of health shall transfer for deposit to the
hospital excess liability pool created pursuant to section 18 of chapter
266 of the laws of 1986 such amounts as directed by the superintendent
of financial services for the purchase of excess liability insurance
coverage for eligible participating physicians and dentists for the
policy year July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30,
2003, or July 1, 2003 to June 30, 2004, or July 1, 2004 to June 30,
2005, or July 1, 2005 to June 30, 2006, or July 1, 2006 to June 30,
2007, as applicable, and the cost of administering the hospital excess
liability pool for such applicable policy year, pursuant to the program
established in chapter 266 of the laws of 1986, as amended, no later
than June 15, 2002, June 15, 2003, June 15, 2004, June 15, 2005, June
15, 2006, June 15, 2007, June 15, 2008, June 15, 2009, June 15, 2010,
June 15, 2011, June 15, 2012, June 15, 2013, June 15, 2014, June 15,
2015, June 15, 2016, [and] June 15, 2017, AND JUNE 15, 2018 as applica-
ble.
§ 6. Notwithstanding any law, rule or regulation to the contrary, only
physicians or dentists who were eligible, and for whom the superinten-
dent of financial services and the commissioner of health, or their
designee, purchased, with funds available in the hospital excess liabil-
ity pool, a full or partial policy for excess coverage or equivalent
excess coverage for the coverage period ending the thirtieth of June,
two thousand seventeen, shall be eligible to apply for such coverage for
S. 2009 70 A. 3009
the coverage period beginning the first of July, two thousand seventeen;
provided, however, if the total number of physicians or dentists for
whom such excess coverage or equivalent excess coverage was purchased
for the policy year ending the thirtieth of June, two thousand seventeen
exceeds the total number of physicians or dentists certified as eligible
for the coverage period beginning the first of July, two thousand seven-
teen, then the general hospitals may certify additional eligible physi-
cians or dentists in a number equal to such general hospital's propor-
tional share of the total number of physicians or dentists for whom
excess coverage or equivalent excess coverage was purchased with funds
available in the hospital excess liability pool as of the thirtieth of
June, two thousand seventeen, as applied to the difference between the
number of eligible physicians or dentists for whom a policy for excess
coverage or equivalent excess coverage was purchased for the coverage
period ending the thirtieth of June, two thousand seventeen and the
number of such eligible physicians or dentists who have applied for
excess coverage or equivalent excess coverage for the coverage period
beginning the first of July, two thousand seventeen.
§ 7. The tax law is amended by adding a new section 171-w to read as
follows:
§ 171-W. ENFORCEMENT OF DELINQUENT TAX LIABILITIES THROUGH TAX CLEAR-
ANCES. (1) FOR THE PURPOSES OF THIS SECTION, THE TERM "TAX LIABILITIES"
SHALL MEAN ANY TAX, SURCHARGE, OR FEE ADMINISTERED BY THE COMMISSIONER,
OR ANY PENALTY OR INTEREST ON SUCH TAX, SURCHARGE OR FEE, OWED BY AN
INDIVIDUAL OR ENTITY. THE TERM "PAST-DUE TAX LIABILITIES" MEANS ANY
UNPAID TAX LIABILITIES THAT HAVE BECOME FIXED AND FINAL SUCH THAT THE
TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW.
THE TERM "GOVERNMENT ENTITY" MEANS THE STATE OF NEW YORK, OR ANY OF ITS
AGENCIES, POLITICAL SUBDIVISIONS, INSTRUMENTALITIES, PUBLIC CORPORATIONS
(INCLUDING A PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT
WITH ANOTHER STATE OR CANADA), OR COMBINATION THEREOF.
(2) THE COMMISSIONER, OR HIS OR HER DESIGNEE, SHALL COOPERATE WITH ANY
GOVERNMENT ENTITY THAT IS REQUIRED BY LAW OR HAS ELECTED TO REQUIRE TAX
CLEARANCES TO ESTABLISH PROCEDURES BY WHICH THE DEPARTMENT SHALL RECEIVE
A TAX CLEARANCE REQUEST AND TRANSMIT SUCH TAX CLEARANCE TO THE GOVERN-
MENT ENTITY, AND ANY OTHER PROCEDURES DEEMED NECESSARY TO CARRY OUT THE
PROVISIONS OF THIS SECTION. THESE PROCEDURES SHALL, TO THE EXTENT PRAC-
TICABLE, REQUIRE SECURE ELECTRONIC COMMUNICATION BETWEEN THE DEPARTMENT
AND THE REQUESTING GOVERNMENT ENTITY FOR THE TRANSMISSION OF TAX CLEAR-
ANCE REQUESTS TO THE DEPARTMENT AND TRANSMISSION OF TAX CLEARANCES TO
THE REQUESTING ENTITY. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, A
GOVERNMENT ENTITY SHALL BE AUTHORIZED TO SHARE ANY APPLICANT DATA OR
INFORMATION WITH THE DEPARTMENT THAT IS NECESSARY TO ENSURE THE PROPER
MATCHING OF THE APPLICANT TO THE TAX RECORDS MAINTAINED BY THE DEPART-
MENT.
(3) UPON RECEIPT OF A TAX CLEARANCE REQUEST, THE DEPARTMENT SHALL
EXAMINE ITS RECORDS TO DETERMINE WHETHER THE SUBJECT OF THE TAX CLEAR-
ANCE REQUEST HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN EXCESS OF THE
DOLLAR THRESHOLD APPLICABLE FOR SUCH TAX CLEARANCE REQUEST OR, WHERE NO
THRESHOLD HAS BEEN ESTABLISHED BY LAW OR OTHERWISE, EQUAL TO OR IN
EXCESS OF FIVE HUNDRED DOLLARS. WHEN A TAX CLEARANCE REQUEST SO
REQUIRES, THE DEPARTMENT SHALL ALSO DETERMINE WHETHER (I) THE SUBJECT OF
SUCH REQUEST HAS COMPLIED WITH APPLICABLE TAX RETURN FILING REQUIREMENTS
FOR EACH OF THE PAST THREE YEARS; AND/OR (II) WHETHER A SUBJECT OF SUCH
REQUEST THAT IS AN INDIVIDUAL OR ENTITY THAT IS A PERSON REQUIRED TO
REGISTER PURSUANT TO SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER
S. 2009 71 A. 3009
IS REGISTERED PURSUANT TO SUCH SECTION. THE DEPARTMENT SHALL DENY A TAX
CLEARANCE IF IT DETERMINES THAT THE SUBJECT OF A TAX CLEARANCE REQUEST
HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN EXCESS OF THE APPLICABLE
THRESHOLD OR, WHEN THE TAX CLEARANCE REQUEST SO REQUIRES, HAS NOT
COMPLIED WITH APPLICABLE RETURN FILING AND/OR REGISTRATION REQUIREMENTS.
(4) IF A TAX CLEARANCE IS DENIED, THE GOVERNMENT ENTITY THAT REQUESTED
THE CLEARANCE SHALL PROVIDE NOTICE TO THE APPLICANT TO CONTACT THE
DEPARTMENT. SUCH NOTICE SHALL BE MADE BY FIRST CLASS MAIL WITH A CERTIF-
ICATE OF MAILING AND A COPY OF SUCH NOTICE ALSO SHALL BE PROVIDED TO THE
DEPARTMENT. WHEN THE APPLICANT CONTACTS THE DEPARTMENT, THE DEPARTMENT
SHALL INFORM THE APPLICANT OF THE BASIS FOR THE DENIAL OF THE TAX CLEAR-
ANCE AND SHALL ALSO INFORM THE APPLICANT (I) THAT A TAX CLEARANCE DENIED
DUE TO PAST-DUE TAX LIABILITIES MAY BE ISSUED ONCE THE TAXPAYER FULLY
SATISFIES PAST-DUE TAX LIABILITIES OR MAKES PAYMENT ARRANGEMENTS SATIS-
FACTORY TO THE COMMISSIONER; (II) THAT A TAX CLEARANCE DENIED DUE TO
FAILURE TO FILE TAX RETURNS MAY BE ISSUED ONCE THE APPLICANT HAS SATIS-
FIED THE APPLICABLE RETURN FILING REQUIREMENTS; (III) THAT A TAX CLEAR-
ANCE DENIED FOR FAILURE TO REGISTER PURSUANT TO SECTION ELEVEN HUNDRED
THIRTY-FOUR OF THIS CHAPTER MAY BE ISSUED ONCE THE APPLICANT HAS REGIS-
TERED PURSUANT TO SUCH SECTION; AND (IV) THE GROUNDS FOR CHALLENGING THE
DENIAL OF A TAX CLEARANCE LISTED IN SUBDIVISION FIVE OF THIS SECTION.
(5) (A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AND EXCEPT AS
SPECIFICALLY PROVIDED HEREIN, AN APPLICANT DENIED A TAX CLEARANCE SHALL
HAVE NO RIGHT TO COMMENCE A COURT ACTION OR PROCEEDING OR SEEK ANY OTHER
LEGAL RECOURSE AGAINST THE DEPARTMENT OR THE GOVERNMENT ENTITY RELATED
TO THE DENIAL OF A TAX CLEARANCE BY THE DEPARTMENT.
(B) AN APPLICANT SEEKING TO CHALLENGE THE DENIAL OF A TAX CLEARANCE
MUST PROTEST TO THE DEPARTMENT OR THE DIVISION OF TAX APPEALS NO LATER
THAN SIXTY DAYS FROM THE DATE OF THE NOTIFICATION TO THE APPLICANT THAT
THE TAX CLEARANCE WAS DENIED. AN APPLICANT MAY CHALLENGE A DEPARTMENT
FINDING OF PAST-DUE TAX LIABILITIES ONLY ON THE GROUNDS THAT (I) THE
INDIVIDUAL OR ENTITY DENIED THE TAX CLEARANCE IS NOT THE INDIVIDUAL OR
ENTITY WITH THE PAST-DUE TAX LIABILITIES AT ISSUE; (II) THE PAST-DUE TAX
LIABILITIES WERE SATISFIED; (III) THE APPLICANT'S WAGES ARE BEING
GARNISHED FOR THE PAYMENT OF CHILD SUPPORT OR COMBINED CHILD AND SPOUSAL
SUPPORT PURSUANT TO AN INCOME EXECUTION ISSUED PURSUANT TO SECTION
FIFTY-TWO HUNDRED FORTY-ONE OR FIFTY-TWO HUNDRED FORTY-TWO OF THE CIVIL
PRACTICE LAW AND RULES OR ANOTHER STATE'S INCOME WITHHOLDING ORDER AS
AUTHORIZED UNDER PART FIVE OF ARTICLE FIVE-B OF THE FAMILY COURT ACT, OR
GARNISHED BY THE DEPARTMENT FOR THE PAYMENT OF THE PAST-DUE TAX LIABIL-
ITIES AT ISSUE; OR (IV) THE APPLICANT IS MAKING CHILD SUPPORT PAYMENTS
OR COMBINED CHILD AND SPOUSAL SUPPORT PAYMENTS PURSUANT TO A SATISFAC-
TORY PAYMENT ARRANGEMENT UNDER SECTION ONE HUNDRED ELEVEN-B OF THE
SOCIAL SERVICES LAW WITH A SUPPORT COLLECTION UNIT OR OTHERWISE MAKING
PERIODIC PAYMENTS IN ACCORDANCE WITH SECTION FOUR HUNDRED FORTY OF THE
FAMILY COURT ACT. AN APPLICANT MAY CHALLENGE A DEPARTMENT FINDING OF
FAILURE TO COMPLY WITH TAX RETURN FILING REQUIREMENTS ONLY ON THE
GROUNDS THAT ALL REQUIRED TAX RETURNS HAVE BEEN FILED FOR EACH OF THE
PAST THREE YEARS.
(C) NOTHING IN THIS SUBDIVISION IS INTENDED TO LIMIT ANY APPLICANT
FROM SEEKING RELIEF FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION
SIX HUNDRED FIFTY-FOUR OF THIS CHAPTER, TO THE EXTENT THAT HE OR SHE IS
ELIGIBLE PURSUANT TO THAT SECTION, OR ESTABLISHING TO THE DEPARTMENT
THAT THE ENFORCEMENT OF THE UNDERLYING TAX LIABILITIES HAS BEEN STAYED
BY THE FILING OF A PETITION PURSUANT TO THE BANKRUPTCY CODE OF 1978
(TITLE ELEVEN OF THE UNITED STATES CODE).
S. 2009 72 A. 3009
(6) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE DEPARTMENT MAY
EXCHANGE WITH A GOVERNMENT ENTITY ANY DATA OR INFORMATION THAT, IN THE
DISCRETION OF THE COMMISSIONER, IS NECESSARY FOR THE IMPLEMENTATION OF A
TAX CLEARANCE REQUIREMENT. HOWEVER, NO GOVERNMENT ENTITY MAY RE-DISCLOSE
THIS INFORMATION TO ANY OTHER ENTITY OR PERSON, OTHER THAN FOR THE
PURPOSE OF INFORMING THE APPLICANT THAT A REQUIRED TAX CLEARANCE HAS
BEEN DENIED, UNLESS OTHERWISE PERMITTED BY LAW.
(7) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE ACTIVITIES TO
COLLECT PAST-DUE TAX LIABILITIES UNDERTAKEN BY THE DEPARTMENT PURSUANT
TO THIS SECTION SHALL NOT IN ANY WAY LIMIT, RESTRICT OR IMPAIR THE
DEPARTMENT FROM EXERCISING ANY OTHER AUTHORITY TO COLLECT OR ENFORCE TAX
LIABILITIES UNDER ANY OTHER APPLICABLE PROVISION OF LAW.
§ 8. This act shall take effect immediately.
PART X
Section 1. Section 2 of part Q of chapter 59 of the laws of 2013,
amending the tax law, relating to serving an income execution with
respect to individual tax debtors without filing a warrant, as amended
by section 1 of part DD of chapter 59 of the laws of 2015, is amended to
read as follows:
§ 2. This act shall take effect immediately [and shall expire and be
deemed repealed on and after April 1, 2017].
§ 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2017.
PART Y
Section 1. Subdivision 1-A of section 208 of the tax law, as amended
by section 4 of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
1-A. The term "New York S corporation" means, with respect to any
taxable year, a corporation subject to tax under this article [for which
an election is in effect pursuant to subsection (a) of section six
hundred sixty of this chapter for such year] AND DESCRIBED IN SUBSECTION
(B) OF SECTION SIX HUNDRED SIXTY OF THIS CHAPTER, AND any such year
shall be denominated a "New York S year"[, and such election shall be
denominated a "New York S election"]. The term "New York C corporation"
means, with respect to any taxable year, a corporation subject to tax
under this article which is not a New York S corporation, and any such
year shall be denominated a "New York C year". The term "termination
year" means any taxable year of a corporation during which the CORPO-
RATION'S STATUS AS A New York S [election] CORPORATION terminates on a
day other than the first day of such year. The portion of the taxable
year ending before the first day for which such termination is effective
shall be denominated the "S short year", and the portion of such year
beginning on such first day shall be denominated the "C short year". The
term "New York S termination year" means any termination year which is
[not] also an S termination year for federal purposes.
§ 2. Subdivision 1-B, paragraph (ii) of the opening paragraph and
paragraph (k) of subdivision 9 of section 208 of the tax law are
REPEALED.
§ 3. Subdivision 1 of section 210-A of the tax law, as amended by
section 21 of part T of chapter 59 of the laws of 2015, is amended to
read as follows:
S. 2009 73 A. 3009
1. General. Business income and capital shall be apportioned to the
state by the apportionment factor determined pursuant to this section.
The apportionment factor is a fraction, determined by including only
those receipts, net income, net gains, and other items described in this
section that are included in the computation of the taxpayer's business
income (determined without regard to the modification provided in
subparagraph nineteen of paragraph (a) of subdivision nine of section
two hundred eight of this article) for the taxable year. The numerator
of the apportionment fraction shall be equal to the sum of all the
amounts required to be included in the numerator pursuant to the
provisions of this section and the denominator of the apportionment
fraction shall be equal to the sum of all the amounts required to be
included in the denominator pursuant to the provisions of this section.
FOR A NEW YORK S CORPORATION, THE RECEIPTS INCLUDED IN THE APPORTIONMENT
FRACTION ARE THOSE RECEIPTS, NET INCOME (NOT LESS THAN ZERO), NET GAINS
(NOT LESS THAN ZERO), AND OTHER ITEMS DESCRIBED IN THIS SECTION THAT ARE
INCLUDED IN THE NEW YORK S CORPORATION'S NONSEPARATELY COMPUTED INCOME
AND LOSS OR IN THE NEW YORK S CORPORATION'S SEPARATELY STATED ITEMS OF
INCOME AND LOSS, DETERMINED PURSUANT TO SUBDIVISION (A) OF SECTION 1366
OF THE INTERNAL REVENUE CODE.
§ 4. Section 660 of the tax law, as amended by chapter 606 of the laws
of 1984, subsections (a) and (h) as amended by section 73 of part A of
chapter 59 of the laws of 2014, paragraph 3 of subsection (b) as amended
by section 51 of part A of chapter 389 of the laws of 1997, paragraphs 4
and 5 as added and paragraph 6 of subsection (b) as renumbered by
section 52 of part A of chapter 389 of the laws of 1997, subsection (d)
as added by chapter 760 of the laws of 1992, subsections (e) and (f) as
added and subsection (g) as relettered by section 53 of part A of chap-
ter 389 of the laws of 1997, subsection (i) as added by section 1 of
part L of chapter 60 of the laws of 2007, and paragraph 1 of subsection
(i) as amended by section 39 of part T of chapter 59 of the laws of
2015, is amended to read as follows:
§ 660. [Election by shareholders of S corporations.] TAX TREATMENT OF
FEDERAL S CORPORATIONS. (a) [Election.] If a corporation is an [eligi-
ble] S corporation DESCRIBED IN SUBSECTION (B) OF THIS SECTION, the
shareholders of the corporation [may elect in the manner set forth in
subsection (b) of this section to] SHALL take into account, to the
extent provided for in this article (or in article thirteen of this
chapter, in the case of a shareholder which is a taxpayer under such
article), the S corporation items of income, loss, deduction and
reductions for taxes described in paragraphs two and three of subsection
(f) of section thirteen hundred sixty-six of the internal revenue code
which are taken into account for federal income tax purposes for the
taxable year. [No election under this subsection shall be effective
unless all shareholders of the corporation have so elected. An eligible]
(B) A NEW YORK S corporation is (i) [an S] A corporation THAT HAS MADE
A VALID ELECTION TO BE AN S CORPORATION FOR FEDERAL INCOME TAX PURPOSES
PURSUANT TO SECTION 1362 OF THE INTERNAL REVENUE CODE which is subject
to tax under article nine-A of this chapter, or (ii) [an S] A corpo-
ration THAT HAS MADE A VALID ELECTION TO BE AN S CORPORATION FOR FEDERAL
INCOME TAX PURPOSES PURSUANT TO SECTION 1362 OF THE INTERNAL REVENUE
CODE which is the parent of a qualified subchapter S subsidiary AS
DEFINED IN SUBPARAGRAPH (B) OF PARAGRAPH THREE OF SUBSECTION (B) OF
SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL REVENUE CODE subject
to tax under article nine-A[, where the shareholders of such parent
corporation are entitled to make the election under this subsection by
S. 2009 74 A. 3009
reason of subparagraph three of paragraph (k) of subdivision nine of
section two hundred eight] of this chapter.
[(b) Requirements of election. An election under subsection (a) of
this section shall be made on such form and in such manner as the tax
commission may prescribe by regulation or instruction.
(1) When made. An election under subsection (a) of this section may be
made at any time during the preceding taxable year of the corporation or
at any time during the taxable year of the corporation and on or before
the fifteenth day of the third month of such taxable year.
(2) Certain elections made during first two and one-half months. If an
election made under subsection (a) of this section is made for any taxa-
ble year of the corporation during such year and on or before the
fifteenth day of the third month of such year, such election shall be
treated as made for the following taxable year if
(A) on one or more days in such taxable year before the day on which
the election was made the corporation did not meet the requirements of
subsection (b) of section thirteen hundred sixty-one of the internal
revenue code or
(B) one or more of the shareholders who held stock in the corporation
during such taxable year and before the election was made did not
consent to the election.
(3) Elections made after first two and one-half months. If an election
under subsection (a) of this section is made for any taxable year of the
corporation and such election is made after the fifteenth day of the
third month of such taxable year and on or before the fifteenth day of
the third month of the following taxable year, such election shall be
treated as made for the following taxable year.
(4) Taxable years of two and one-half months or less. For purposes of
this subsection, an election for a taxable year made not later than two
months and fifteen days after the first day of the taxable year shall be
treated as timely made during such year.
(5) Authority to treat late elections, etc., as timely. If (A) an
election under subsection (a) of this section is made for any taxable
year (determined without regard to paragraph three of this subsection)
after the date prescribed by this subsection for making such election
for such taxable year, or if no such election is made for any taxable
year, and
(B) the commissioner determines that there was reasonable cause for
failure to timely make such election, then
(C) the commissioner may treat such an election as timely made for
such taxable year (and paragraph three of this subsection shall not
apply).
(6) Years for which effective. An election under subsection (a) of
this section shall be effective for the taxable year of the corporation
for which it is made and for all succeeding taxable years of the corpo-
ration until such election is terminated under subsection (c) of this
section.]
(c) Termination. An [election under subsection (a) of this section] S
CORPORATION shall cease to be [effective
(1)] A NEW YORK S CORPORATION on the day an election to be an S corpo-
ration ceases to be effective for federal income tax purposes pursuant
to subsection (d) of section thirteen hundred sixty-two of the internal
revenue code[, or
(2) if shareholders holding more than one-half of the shares of stock
of the corporation on the day on which the revocation is made revoke
S. 2009 75 A. 3009
such election in the manner the tax commission may prescribe by regu-
lation,
(A) on the first day of the taxable year of the corporation, if the
revocation is made during such taxable year and on or before the
fifteenth day of the third month thereof, or
(B) on the first day of the following taxable year of the corporation,
if the revocation is made during the taxable year but after the
fifteenth day of the third month thereof, or
(C) on and after the date so specified, if the revocation specifies a
date for revocation which is on or after the day on which the revocation
is made, or
(3) if any person who was not a shareholder of the corporation on the
day on which the election is made becomes a shareholder in the corpo-
ration and affirmatively refuses to consent to such election in the
manner the tax commission may prescribe by regulation, on the day such
person becomes a shareholder].
(d) New York S termination year. In the case of a New York S termi-
nation year, the amount of any item of S corporation income, loss and
deduction and reductions for taxes (as described in paragraphs two and
three of subsection (f) of section thirteen hundred sixty-six of the
internal revenue code) required to be taken account of under this arti-
cle shall be adjusted in the same manner that the S corporation's items
which are included in the shareholder's federal adjusted gross income
are adjusted under subsection (s) of section six hundred twelve.
(e) [Inadvertent invalid elections. If (1) an election under
subsection (a) of this section was not effective for the taxable year
for which made (determined without regard to paragraph two of subsection
(b) of this section) by reason of a failure to obtain shareholder
consents,
(2) the commissioner determines that the circumstances resulting in
such ineffectiveness were inadvertent,
(3) no later than a reasonable period of time after discovery of the
circumstances resulting in such ineffectiveness, steps were taken to
acquire the required shareholder consents, and
(4) the corporation, and each person who was a shareholder in the
corporation at any time during the period specified pursuant to this
subsection, agrees to make such adjustments (consistent with the treat-
ment of the corporation as a New York S corporation) as may be required
by the commissioner with respect to such period,
(5) then, notwithstanding the circumstances resulting in such ineffec-
tiveness, such corporation shall be treated as a New York S corporation
during the period specified by the commissioner.
(f) Validated federal elections. If (1) an election under subsection
(a) of this section was made for a taxable year or years of a corpo-
ration, which years occur with or within the period for which the feder-
al S election of such corporation has been validated pursuant to the
provisions of subsection (f) of section thirteen hundred sixty-two of
the internal revenue code, and
(2) the corporation, and each person who was a shareholder in the
corporation at any time during such taxable year or years agrees to make
such adjustments (consistent with the treatment of the corporation as a
New York S corporation) as may be required by the commissioner with
respect to such year or years,
(3) then such corporation shall be treated as a New York S corporation
during such year or years.
S. 2009 76 A. 3009
(g) Transitional rule. Any election made under this section (as in
effect for taxable years beginning before January first, nineteen
hundred eighty-three) shall be treated as an election made under
subsection (a) of this section.
(h)] QUALIFIED SUBCHAPTER S SUBSIDIARIES. IF AN S CORPORATION HAS
ELECTED TO TREAT ITS WHOLLY OWNED SUBSIDIARY AS A QUALIFIED SUBCHAPTER S
SUBSIDIARY FOR FEDERAL INCOME TAX PURPOSES UNDER PARAGRAPH THREE OF
SUBSECTION (B) OF SECTION 1361 OF THE INTERNAL REVENUE CODE, SUCH
ELECTION SHALL BE APPLICABLE FOR NEW YORK STATE TAX PURPOSES AND
(1) THE ASSETS, LIABILITIES, INCOME, DEDUCTIONS, PROPERTY, PAYROLL,
RECEIPTS, CAPITAL, CREDITS, AND ALL OTHER TAX ATTRIBUTES AND ELEMENTS OF
ECONOMIC ACTIVITY OF THE SUBSIDIARY SHALL BE DEEMED TO BE THOSE OF THE
PARENT CORPORATION,
(2) TRANSACTIONS BETWEEN THE PARENT CORPORATION AND THE SUBSIDIARY,
INCLUDING THE PAYMENT OF INTEREST AND DIVIDENDS, SHALL NOT BE TAKEN INTO
ACCOUNT, AND
(3) GENERAL EXECUTIVE OFFICERS OF THE SUBSIDIARY SHALL BE DEEMED TO BE
GENERAL EXECUTIVE OFFICERS OF THE PARENT CORPORATION.
(F) Cross reference. For definitions relating to S corporations, see
subdivision one-A of section two hundred eight of this chapter.
[(i) Mandated New York S corporation election. (1) Notwithstanding
the provisions in subsection (a) of this section, in the case of an
eligible S corporation for which the election under subsection (a) of
this section is not in effect for the current taxable year, the share-
holders of an eligible S corporation are deemed to have made that
election effective for the eligible S corporation's entire current taxa-
ble year, if the eligible S corporation's investment income for the
current taxable year is more than fifty percent of its federal gross
income for such year. In determining whether an eligible S corporation
is deemed to have made that election, the income of a qualified subchap-
ter S subsidiary owned directly or indirectly by the eligible S corpo-
ration shall be included with the income of the eligible S corporation.
(2) For the purposes of this subsection, the term "eligible S corpo-
ration" has the same definition as in subsection (a) of this section.
(3) For the purposes of this subsection, the term "investment income"
means the sum of an eligible S corporation's gross income from interest,
dividends, royalties, annuities, rents and gains derived from dealings
in property, including the corporation's share of such items from a
partnership, estate or trust, to the extent such items would be includa-
ble in federal gross income for the taxable year.
(4) Estimated tax payments. When making estimated tax payments
required to be made under this chapter in the current tax year, the
eligible S corporation and its shareholders may rely on the eligible S
corporation's filing status for the prior year. If the eligible S corpo-
ration's filing status changes from the prior tax year the corporation
or the shareholders, as the case may be, which made the payments shall
be entitled to a refund of such estimated tax payments. No additions to
tax with respect to any required declarations or payments of estimated
tax imposed under this chapter shall be imposed on the corporation or
shareholders, whichever is the taxpayer for the current taxable year, if
the corporation or the shareholders file such declarations and make such
estimated tax payments by January fifteenth of the following calendar
year, regardless of whether the taxpayer's tax year is a calendar or a
fiscal year.]
S. 2009 77 A. 3009
§ 5. Subparagraph (A) of paragraph 18 of subsection (b) of section 612
of the tax law, as amended by chapter 28 of the laws of 1987, is amended
to read as follows:
(A) [where the election provided for in subsection (a) of section six
hundred sixty is in effect with respect to such corporation] THAT IS A
NEW YORK S CORPORATION, an amount equal to his pro rata share of the
corporation's reductions for taxes described in paragraphs two and three
of subsection (f) of section thirteen hundred sixty-six of the internal
revenue code, and
§ 6. Paragraph 19 of subsection (b) of section 612 of the tax law is
REPEALED.
§ 7. Paragraphs 20 and 21 of subsection (b) of section 612 of the tax
law, paragraph 20 as amended by chapter 606 of the laws of 1984 and
paragraph 21 as amended by section 70 of part A of chapter 59 of the
laws of 2014, are amended to read as follows:
(20) S corporation distributions to the extent not included in federal
gross income for the taxable year because of the application of section
thirteen hundred sixty-eight, subsection (e) of section thirteen hundred
seventy-one or subsection (c) of section thirteen hundred seventy-nine
of the internal revenue code which represent income not previously
subject to tax under this article because the election provided for in
subsection (a) of section six hundred sixty IN EFFECT FOR TAXABLE YEARS
BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN had not been made.
Any such distribution treated in the manner described in paragraph two
of subsection (b) of section thirteen hundred sixty-eight of the inter-
nal revenue code for federal income tax purposes shall be treated as
ordinary income for purposes of this article.
(21) In relation to the disposition of stock or indebtedness of a
corporation which elected under subchapter s of chapter one of the
internal revenue code for any taxable year of such corporation begin-
ning, in the case of a corporation taxable under article nine-A of this
chapter, after December thirty-first, nineteen hundred eighty AND BEFORE
JANUARY FIRST, TWO THOUSAND EIGHTEEN, the amount required to be added to
federal adjusted gross income pursuant to subsection (n) of this
section.
§ 8. Paragraph 21 of subsection (c) of section 612 of the tax law, as
amended by section 70 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(21) In relation to the disposition of stock or indebtedness of a
corporation which elected under subchapter s of chapter one of the
internal revenue code for any taxable year of such corporation begin-
ning, in the case of a corporation taxable under article nine-A of this
chapter, after December thirty-first, nineteen hundred eighty AND BEFORE
JANUARY FIRST, TWO THOUSAND EIGHTEEN, the amounts required to be
subtracted from federal adjusted gross income pursuant to subsection (n)
of this section.
§ 9. Paragraph 22 of subsection (c) of section 612 of the tax law is
REPEALED.
§ 10. Subsection (e) of section 612 of the tax law, as amended by
chapter 166 of the laws of 1991 and paragraph 3 as added by chapter 760
of the laws of 1992, is amended to read as follows:
(e) Modifications of partners and shareholders of S corporations. (1)
Partners and shareholders of S corporations [which are not New York C
corporations]. The amounts of modifications required to be made under
this section by a partner or by a shareholder of an S corporation
[(other than an S corporation which is a New York C corporation)], which
S. 2009 78 A. 3009
relate to partnership or S corporation items of income, gain, loss or
deduction shall be determined under section six hundred seventeen and,
in the case of a partner of a partnership doing an insurance business as
a member of the New York insurance exchange described in section six
thousand two hundred one of the insurance law, under section six hundred
seventeen-a of this article.
(2) [Shareholders of S corporations which are New York C corporations.
In the case of a shareholder of an S corporation which is a New York C
corporation, the modifications under this section which relate to the
corporation's items of income, loss and deduction shall not apply,
except for the modifications provided under paragraph nineteen of
subsection (b) and paragraph twenty-two of subsection (c) of this
section.
(3)] New York S termination year. In the case of a New York S termi-
nation year, the amounts of the modifications required under this
section which relate to the S corporation's items of income, loss,
deduction and reductions for taxes (as described in paragraphs two and
three of subsection (f) of section thirteen hundred sixty-six of the
internal revenue code) shall be adjusted in the same manner that the S
corporation's items are adjusted under subsection (s) of [section six
hundred twelve] THIS SECTION.
§ 11. Subsection (n) of section 612 of the tax law, as amended by
section 61 of part A of chapter 389 of the laws of 1997, is amended to
read as follows:
(n) Where gain or loss is recognized for federal income tax purposes
upon the disposition of stock or indebtedness of a corporation electing
under subchapter s of chapter one of the internal revenue code
(1) There shall be added to federal adjusted gross income the amount
of increase in basis with respect to such stock or indebtedness pursuant
to subsection (a) of section thirteen hundred seventy-six of the inter-
nal revenue code as such section was in effect for taxable years begin-
ning before January first, nineteen hundred eighty-three and subpara-
graphs (A) and (B) of paragraph one of subsection (a) of section
thirteen hundred sixty-seven of such code, for each taxable year of the
corporation beginning, in the case of a corporation taxable under arti-
cle nine-A of this chapter, after December thirty-first, nineteen
hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, and in
the case of a corporation taxable under article thirty-two of this chap-
ter, after December thirty-first, nineteen hundred ninety-six AND BEFORE
JANUARY FIRST, TWO THOUSAND FIFTEEN, for which the election provided for
in subsection (a) of section six hundred sixty of this article was not
in effect, and
(2) There shall be subtracted from federal adjusted gross income
(A) the amount of reduction in basis with respect to such stock or
indebtedness pursuant to subsection (b) of section thirteen hundred
seventy-six of the internal revenue code as such section was in effect
for taxable years beginning before January first, nineteen hundred
eighty-three and subparagraphs (B) and (C) of paragraph two of
subsection (a) of section thirteen hundred sixty-seven of such code, for
each taxable year of the corporation beginning, in the case of a corpo-
ration taxable under article nine-A of this chapter, after December
thirty-first, nineteen hundred eighty AND BEFORE JANUARY FIRST, TWO
THOUSAND EIGHTEEN, and in the case of a corporation taxable under arti-
cle thirty-two of this chapter, after December thirty-first, nineteen
hundred ninety-six AND BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, for
S. 2009 79 A. 3009
which the election provided for in subsection (a) of section six hundred
sixty of this article was not in effect and
(B) the amount of any modifications to federal gross income with
respect to such stock pursuant to paragraph twenty of subsection (b) of
this section.
§ 12. Subparagraph (E-1) of paragraph 1 of subsection (b) of section
631 of the tax law, as added by section 3 of part C of chapter 57 of the
laws of 2010, is amended to read as follows:
(E-1) in the case of [an] A NEW YORK S corporation [for which an
election is in effect pursuant to subsection (a) of section six hundred
sixty of this article] that terminates its taxable status in New York,
any income or gain recognized on the receipt of payments from an
installment sale contract entered into when the S corporation was
subject to tax in New York, allocated in a manner consistent with the
applicable methods and rules for allocation under article nine-A or
thirty-two of this chapter PRIOR TO ITS REPEAL, in the year that the S
corporation sold its assets.
§ 13. The section heading and paragraph 2 of subsection (a) of section
632 of the tax law, the section heading as amended by chapter 606 of the
laws of 1984, paragraph 2 of subsection (a) as amended by section 71 of
part A of chapter 59 of the laws of 2014 and such section as renumbered
by chapter 28 of the laws of 1987, are amended to read as follows:
Nonresident partners and [electing] shareholders of S corporations.
(2) In determining New York source income of a nonresident shareholder
of [an] A NEW YORK S corporation [where the election provided for in
subsection (a) of section six hundred sixty of this article is in
effect], there shall be included only the portion derived from or
connected with New York sources of such shareholder's pro rata share of
items of S corporation income, loss and deduction entering into his
federal adjusted gross income, increased by reductions for taxes
described in paragraphs two and three of subsection (f) of section thir-
teen hundred sixty-six of the internal revenue code, as such portion
shall be determined under regulations of the commissioner consistent
with the applicable methods and rules for allocation under article
nine-A of this chapter, regardless of whether or not such item or
reduction is included in entire net income under article nine-A for the
tax year. If a nonresident is a shareholder in [an] A NEW YORK S corpo-
ration [where the election provided for in subsection (a) of section six
hundred sixty of this article is in effect, and the S corporation] THAT
has distributed an installment obligation under section 453(h)(1)(A) of
the Internal Revenue Code, then any gain recognized on the receipt of
payments from the installment obligation for federal income tax purposes
will be treated as New York source income allocated in a manner consist-
ent with the applicable methods and rules for allocation under article
nine-A of this chapter in the year that the assets were sold. In addi-
tion, if the shareholders of the NEW YORK S corporation have made an
election under section 338(h)(10) of the Internal Revenue Code, then any
gain recognized on the deemed asset sale for federal income tax purposes
will be treated as New York source income allocated in a manner consist-
ent with the applicable methods and rules for allocation under article
nine-A of this chapter in the year that the shareholder made the section
338(h)(10) election. For purposes of a section 338(h)(10) election, when
a nonresident shareholder exchanges his or her S corporation stock as
part of the deemed liquidation, any gain or loss recognized shall be
treated as the disposition of an intangible asset and will not increase
S. 2009 80 A. 3009
or offset any gain recognized on the deemed assets sale as a result of
the section 338(h)(10) election.
§ 14. Subparagraph (A) and the opening paragraph of subparagraph (B)
of paragraph 5 of subdivision (a) of section 292 of the tax law, as
added by section 48 of part A of chapter 389 of the laws of 1997, are
amended to read as follows:
(A) In the case of a shareholder of an S corporation,
(i) [where the election provided for in subsection (a) of section six
hundred sixty of this chapter is in effect with respect to such corpo-
ration] THAT IS A NEW YORK S CORPORATION, there shall be added to feder-
al unrelated business taxable income an amount equal to the sharehold-
er's pro rata share of the corporation's reductions for taxes described
in paragraphs two and three of subsection (f) of section thirteen
hundred sixty-six of the internal revenue code, and
(ii) [where such election has not been made with respect to such
corporation, there shall be subtracted from federal unrelated business
taxable income any items of income of the corporation included therein,
and there shall be added to federal unrelated business taxable income
any items of loss or deduction included therein, and
(iii)] in the case of a New York S termination year, the amount of any
such items of S corporation income, loss, deduction and reductions for
taxes shall be adjusted in the manner provided in paragraph two or three
of subsection (s) of section six hundred twelve of this chapter.
In the case of a shareholder of a corporation which was, for any of
its taxable years beginning after nineteen hundred ninety-seven AND
BEFORE TWO THOUSAND EIGHTEEN, a federal S corporation but a New York C
corporation:
§ 15. Transition rules. Any prior net operating loss conversion
subtraction pool and net operating loss carryforward that otherwise
would have been allowed under subparagraph (viii) of paragraph (a) of
subdivision 1 of section 210 of the tax law and subparagraph (ix) of
paragraph (a) of subdivision 1 of section 210 of the tax law, respec-
tively, for the 2018 or subsequent taxable years, to any taxpayer that
was a New York C corporation for the 2017 taxable year, and becomes a
New York S corporation for the 2018 taxable year as a result of the
amendments made by this act, shall be held in abeyance and be available
to such taxpayer if its election to be a federal S corporation is termi-
nated. Further, any credit carryforwards that otherwise would have been
allowed to such a taxpayer under section 210-B of the tax law for the
2018 or subsequent taxable years shall be held in abeyance and be avail-
able to such taxpayer if its election to be a federal S corporation is
terminated. However, the taxpayer's taxable years as a New York S corpo-
ration shall be counted for purposes of computing any time period appli-
cable to the allowance of the prior net operating loss conversion
subtraction, the net operating loss deduction or any credit carryfor-
ward.
§ 16. This act shall take effect immediately and shall apply to taxa-
ble years beginning on or after January 1, 2018.
PART Z
Section 1. Clause 1 of subparagraph (A) of paragraph 1 of subsection
(b) of section 631 of the tax law, as added by section 1 of part F-1 of
chapter 57 of the laws of 2009, is amended to read as follows:
(1) For purposes of this subparagraph, the term "real property located
in this state" includes an interest in a partnership, limited liability
S. 2009 81 A. 3009
corporation, S corporation, or non-publicly traded C corporation with
one hundred or fewer shareholders (hereinafter the "entity") that owns
real property that is located in New York [and has a fair market value
that] OR OWNS SHARES OF STOCK IN A COOPERATIVE HOUSING CORPORATION WHERE
THE COOPERATIVE UNITS RELATING TO THE SHARES ARE LOCATED IN NEW YORK;
PROVIDED, THAT THE SUM OF THE FAIR MARKET VALUES OF SUCH REAL PROPERTY,
COOPERATIVE SHARES, AND RELATED COOPERATIVE UNITS equals or exceeds
fifty percent of all the assets of the entity on the date of sale or
exchange of the taxpayer's interest in the entity. Only those assets
that the entity owned for at least two years before the date of the sale
or exchange of the taxpayer's interest in the entity are to be used in
determining the fair market value of all the assets of the entity on the
date of sale or exchange. The gain or loss derived from New York sources
from the taxpayer's sale or exchange of an interest in an entity that is
subject to the provisions of this subparagraph is the total gain or loss
for federal income tax purposes from that sale or exchange multiplied by
a fraction, the numerator of which is the fair market value of the real
property, AND THE COOPERATIVE HOUSING CORPORATION STOCK AND RELATED
COOPERATIVE UNITS located in New York on the date of sale or exchange
and the denominator of which is the fair market value of all the assets
of the entity on the date of sale or exchange.
§ 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2017.
PART AA
Section 1. Paragraph 1 of subsection (a) of section 632 of the tax
law, as amended by chapter 28 of the laws of 1987, is amended to read as
follows:
(1) In determining New York source income of a nonresident partner of
any partnership, there shall be included only the portion derived from
or connected with New York sources of such partner's distributive share
of items of partnership income, gain, loss and deduction entering into
his federal adjusted gross income, as such portion shall be determined
under regulations of the tax commission consistent with the applicable
rules of section six hundred thirty-one OF THIS PART. IF A NONRESIDENT
IS A PARTNER IN A PARTNERSHIP WHERE A SALE OR TRANSFER OF THE MEMBERSHIP
INTEREST OF THE PARTNER IS SUBJECT TO THE PROVISIONS OF SECTION ONE-
THOUSAND SIXTY OF THE INTERNAL REVENUE CODE, THEN ANY GAIN RECOGNIZED ON
THE SALE OR TRANSFER FOR FEDERAL INCOME TAX PURPOSES SHALL BE TREATED AS
NEW YORK SOURCE INCOME ALLOCATED IN A MANNER CONSISTENT WITH THE APPLI-
CABLE METHODS AND RULES FOR ALLOCATION UNDER THIS ARTICLE IN THE YEAR
THAT THE ASSETS WERE SOLD OR TRANSFERRED.
§ 2. This act shall take effect immediately
PART BB
Section 1. Section 1101 of the tax law is amended by adding a new
subdivision (e) to read as follows:
(E) WHEN USED IN THIS ARTICLE FOR THE PURPOSES OF THE TAXES IMPOSED
UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND
BY SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE, THE FOLLOWING TERMS SHALL
MEAN:
(1) MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT WITH
A MARKETPLACE SELLER, FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY BY
SUCH MARKETPLACE SELLER OR SELLERS. A PERSON "FACILITATES A SALE OF
S. 2009 82 A. 3009
TANGIBLE PERSONAL PROPERTY" FOR PURPOSES OF THIS PARAGRAPH WHEN THE
PERSON MEETS BOTH OF THE FOLLOWING CONDITIONS: (I) SUCH PERSON PROVIDES
THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE SALE TAKES PLACE OR THE
OFFER OF SALE IS ACCEPTED, INCLUDING A SHOP, STORE, OR BOOTH, AN INTER-
NET WEBSITE, CATALOG, OR SIMILAR FORUM; AND (II) SUCH PERSON OR AN
AFFILIATE OF SUCH PERSON COLLECTS THE RECEIPTS PAID BY A CUSTOMER TO A
MARKETPLACE SELLER FOR A SALE OF TANGIBLE PERSONAL PROPERTY, OR
CONTRACTS WITH A THIRD PARTY TO COLLECT SUCH RECEIPTS. FOR PURPOSES OF
THIS PARAGRAPH, TWO PERSONS ARE AFFILIATED IF ONE PERSON HAS AN OWNER-
SHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN
THE OTHER, OR WHERE AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT,
WHETHER DIRECT OR INDIRECT, IS HELD IN EACH OF SUCH PERSONS BY ANOTHER
PERSON OR BY A GROUP OF OTHER PERSONS THAT ARE AFFILIATED PERSONS WITH
RESPECT TO EACH OTHER. NOTWITHSTANDING ANYTHING IN THIS PARAGRAPH, A
PERSON WHO FACILITATES SALES EXCLUSIVELY BY MEANS OF THE INTERNET IS NOT
A MARKETPLACE PROVIDER FOR A SALES TAX QUARTER WHEN SUCH PERSON CAN SHOW
THAT IT HAS FACILITATED LESS THAN ONE HUNDRED MILLION DOLLARS OF SALES
ANNUALLY FOR EVERY CALENDAR YEAR AFTER TWO THOUSAND FIFTEEN.
(2) MARKETPLACE SELLER. ANY PERSON, WHETHER OR NOT SUCH PERSON IS
REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN
HUNDRED THIRTY-FOUR OF THIS ARTICLE, WHO HAS AN AGREEMENT WITH A MARKET-
PLACE PROVIDER UNDER WHICH THE MARKETPLACE PROVIDER WILL FACILITATE
SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH PERSON WITHIN THE MEANING OF
PARAGRAPH ONE OF THIS SUBDIVISION.
§ 2. Subdivision 1 of section 1131 of the tax law, as amended by chap-
ter 576 of the laws of 1994, is amended to read as follows:
(1) "Persons required to collect tax" or "person required to collect
any tax imposed by this article" shall include: every vendor of tangible
personal property or services; every recipient of amusement charges;
[and] every operator of a hotel, AND EVERY MARKETPLACE PROVIDER WITH
RESPECT TO SALES OF TANGIBLE PERSONAL PROPERTY IT FACILITATES AS
DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED
ONE OF THIS ARTICLE. Said terms shall also include any officer, director
or employee of a corporation or of a dissolved corporation, any employee
of a partnership, any employee or manager of a limited liability compa-
ny, or any employee of an individual proprietorship who as such officer,
director, employee or manager is under a duty to act for such corpo-
ration, partnership, limited liability company or individual proprietor-
ship in complying with any requirement of this article; and any member
of a partnership or limited liability company. Provided, however, that
any person who is a vendor solely by reason of clause (D) or (E) of
subparagraph (i) of paragraph (8) of subdivision (b) of section eleven
hundred one OF THIS ARTICLE shall not be a "person required to collect
any tax imposed by this article" until twenty days after the date by
which such person is required to file a certificate of registration
pursuant to section eleven hundred thirty-four OF THIS PART.
§ 3. Section 1132 of the tax law is amended by adding a new subdivi-
sion (l) to read as follows:
(L) (1) A MARKETPLACE PROVIDER, WITH RESPECT TO A SALE OF TANGIBLE
PERSONAL PROPERTY IT FACILITATES: (I) SHALL HAVE ALL THE OBLIGATIONS AND
RIGHTS OF A VENDOR UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS
CHAPTER AND UNDER ANY REGULATIONS ADOPTED PURSUANT THERETO, INCLUDING,
BUT NOT LIMITED TO, THE DUTY TO OBTAIN A CERTIFICATE OF AUTHORITY, TO
COLLECT TAX, FILE RETURNS, REMIT TAX, AND THE RIGHT TO ACCEPT A CERTIF-
ICATE OR OTHER DOCUMENTATION FROM A CUSTOMER SUBSTANTIATING AN EXEMPTION
OR EXCLUSION FROM TAX, THE RIGHT TO RECEIVE THE REFUND AUTHORIZED BY
S. 2009 83 A. 3009
SUBDIVISION (E) OF THIS SECTION AND THE CREDIT ALLOWED BY SUBDIVISION
(F) OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS PART SUBJECT TO THE
PROVISIONS OF SUCH SUBDIVISION; AND (II) SHALL KEEP SUCH RECORDS AND
INFORMATION AND COOPERATE WITH THE COMMISSIONER TO ENSURE THE PROPER
COLLECTION AND REMITTANCE OF TAX IMPOSED COLLECTED OR REQUIRED TO BE
COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER.
(2) A MARKETPLACE SELLER WHO IS A VENDOR IS RELIEVED FROM THE DUTY TO
COLLECT TAX IN REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY
SUBJECT TO TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF
THIS ARTICLE AND SHALL NOT INCLUDE THE RECEIPTS FROM SUCH SALE IN ITS
TAXABLE RECEIPTS FOR PURPOSES OF SECTION ELEVEN HUNDRED THIRTY-SIX OF
THIS PART IF, IN REGARD TO SUCH SALE: (I) THE MARKETPLACE SELLER CAN
SHOW THAT SUCH SALE WAS FACILITATED BY A MARKETPLACE PROVIDER FROM WHOM
SUCH SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE
OF COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING THAT
THE MARKETPLACE PROVIDER IS REGISTERED TO COLLECT SALES TAX AND WILL
COLLECT SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY BY
THE MARKETPLACE SELLER FACILITATED BY THE MARKETPLACE PROVIDER, AND WITH
SUCH OTHER INFORMATION AS THE COMMISSIONER MAY PRESCRIBE; AND (II) ANY
FAILURE OF THE MARKETPLACE PROVIDER TO COLLECT THE PROPER AMOUNT OF TAX
IN REGARD TO SUCH SALE WAS NOT THE RESULT OF SUCH MARKETPLACE SELLER
PROVIDING THE MARKETPLACE PROVIDER WITH INCORRECT INFORMATION. THIS
PROVISION SHALL BE ADMINISTERED IN A MANNER CONSISTENT WITH SUBPARAGRAPH
(I) OF PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION AS IF A CERTIF-
ICATE OF COLLECTION WERE A RESALE OR EXEMPTION CERTIFICATE FOR PURPOSES
OF SUCH SUBPARAGRAPH, INCLUDING WITH REGARD TO THE COMPLETENESS OF SUCH
CERTIFICATE OF COLLECTION AND THE TIMING OF ITS ACCEPTANCE BY THE
MARKETPLACE SELLER. PROVIDED THAT, WITH REGARD TO ANY SALES OF TANGIBLE
PERSONAL PROPERTY BY A MARKETPLACE SELLER THAT ARE FACILITATED BY A
MARKETPLACE PROVIDER WHO IS AFFILIATED WITH SUCH MARKETPLACE SELLER
WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN
HUNDRED ONE OF THIS ARTICLE, THE MARKETPLACE SELLER SHALL BE DEEMED
LIABLE AS A PERSON UNDER A DUTY TO ACT FOR SUCH MARKETPLACE PROVIDER FOR
PURPOSES OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS
PART.
(3) THE COMMISSIONER MAY, IN HIS OR HER DISCRETION: (I) DEVELOP A
STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED BY A MARKETPLACE
PROVIDER, IN WHICH THE MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT
THE TAX ON BEHALF OF ALL THE MARKETPLACE SELLERS FOR WHOM THE MARKET-
PLACE PROVIDER FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY, WITH
RESPECT TO ALL SALES THAT IT FACILITATES FOR SUCH SELLERS WHERE DELIVERY
OCCURS IN THE STATE; AND (II) PROVIDE BY REGULATION OR OTHERWISE THAT
THE INCLUSION OF SUCH PROVISION IN THE PUBLICLY-AVAILABLE AGREEMENT
BETWEEN THE MARKETPLACE PROVIDER AND MARKETPLACE SELLER WILL HAVE THE
SAME EFFECT AS A MARKETPLACE SELLER'S ACCEPTANCE OF A CERTIFICATE OF
COLLECTION FROM SUCH MARKETPLACE PROVIDER UNDER PARAGRAPH TWO OF THIS
SUBDIVISION.
§ 4. Section 1133 of the tax law is amended by adding a new subdivi-
sion (f) to read as follows:
(F) A MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION
FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT THE
MARKETPLACE PROVIDER CAN SHOW THAT THE ERROR WAS DUE TO INCORRECT INFOR-
MATION GIVEN TO THE MARKETPLACE PROVIDER BY THE MARKETPLACE SELLER.
PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY IF THE MARKETPLACE
SELLER AND MARKETPLACE PROVIDER ARE AFFILIATED WITHIN THE MEANING OF
S. 2009 84 A. 3009
PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS
ARTICLE.
§ 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as
amended by section 46 of part K of chapter 61 of the laws of 2011, is
amended to read as follows:
(4) The return of a vendor of tangible personal property or services
shall show such vendor's receipts from sales and the number of gallons
of any motor fuel or diesel motor fuel sold and also the aggregate value
of tangible personal property and services and number of gallons of such
fuels sold by the vendor, the use of which is subject to tax under this
article, and the amount of tax payable thereon pursuant to the
provisions of section eleven hundred thirty-seven of this part. The
return of a recipient of amusement charges shall show all such charges
and the amount of tax thereon, and the return of an operator required to
collect tax on rents shall show all rents received or charged and the
amount of tax thereon. THE RETURN OF A MARKETPLACE SELLER SHALL EXCLUDE
THE RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A
MARKETPLACE PROVIDER IF, IN REGARD TO SUCH SALE: (A) THE MARKETPLACE
SELLER HAS TIMELY RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIF-
ICATE OF COLLECTION FROM THE MARKETPLACE PROVIDER OR THE MARKETPLACE
PROVIDER HAS INCLUDED A PROVISION APPROVED BY THE COMMISSIONER IN THE
PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE MARKETPLACE PROVIDER AND THE
MARKETPLACE SELLER AS DESCRIBED IN SUBDIVISION (1) OF SECTION ELEVEN
HUNDRED THIRTY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE
MARKETPLACE SELLER TO THE MARKETPLACE PROVIDER ABOUT SUCH TANGIBLE
PERSONAL PROPERTY IS ACCURATE.
§ 6. Section 1142 of the tax law is amended by adding a new subdivi-
sion 15 to read as follows:
15. TO PUBLISH A LIST ON THE DEPARTMENT'S WEBSITE OF MARKETPLACE
PROVIDERS WHOSE CERTIFICATE OF AUTHORITY HAS BEEN REVOKED AND, IF NECES-
SARY TO PROTECT SALES TAX REVENUE, PROVIDE BY REGULATION OR OTHERWISE
THAT A MARKETPLACE SELLER WHO IS A VENDOR WILL BE RELIEVED OF THE DUTY
TO COLLECT TAX FOR SALES OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A
MARKETPLACE PROVIDER ONLY IF, IN ADDITION TO THE CONDITIONS PRESCRIBED
BY PARAGRAPH TWO OF SUBDIVISION (1) OF SECTION ELEVEN HUNDRED THIRTY-TWO
OF THIS PART BEING MET, SUCH MARKETPLACE PROVIDER IS NOT ON SUCH LIST AT
THE COMMENCEMENT OF THE CALENDAR YEAR IN WHICH THE SALE WAS MADE.
§ 7. This act shall take effect September 1, 2017, and shall apply to
sales made on or after that date.
PART CC
Section 1. Paragraph 4 of subdivision (b) of section 1101 of the tax
law is amended by adding a new subparagraph (v) to read as follows:
(V) NOTWITHSTANDING THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARA-
GRAPH, THE FOLLOWING SALES OF TANGIBLE PERSONAL PROPERTY SHALL BE DEEMED
TO BE RETAIL SALES: (A) A SALE TO A SINGLE MEMBER LIMITED LIABILITY
COMPANY OR A SUBSIDIARY FOR RESALE TO ITS MEMBER OR OWNER, WHERE SUCH
SINGLE MEMBER LIMITED LIABILITY COMPANY OR SUBSIDIARY IS DISREGARDED AS
AN ENTITY SEPARATE FROM ITS OWNER FOR FEDERAL INCOME TAX PURPOSES (WITH-
OUT REFERENCE TO ANY SPECIAL RULES RELATED TO THE IMPOSITION OF CERTAIN
FEDERAL TAXES), INCLUDING BUT NOT LIMITED TO CERTAIN EMPLOYMENT AND
EXCISE TAXES; (B) A SALE TO A PARTNERSHIP FOR RESALE TO ONE OR MORE OF
ITS PARTNERS; OR (C) A SALE TO A TRUSTEE OF A TRUST FOR RESALE TO ONE OR
MORE BENEFICIARIES OF SUCH TRUST.
S. 2009 85 A. 3009
§ 2. Subdivision 2 of section 1118 of the tax law, as amended by
section 4 of subpart B of part S of chapter 57 of the laws of 2010, is
amended to read as follows:
(2)(A) In respect to the use of property or services purchased by the
user while a nonresident of this state, except in the case of tangible
personal property or services which the user, in the performance of a
contract, incorporates into real property located in the state. A person
while engaged in any manner in carrying on in this state any employment,
trade, business or profession, shall not be deemed a nonresident with
respect to the use in this state of property or services in such employ-
ment, trade, business or profession. This exemption does not apply to
the use of qualified property where the qualified property is purchased
primarily to carry individuals, whether or not for hire, who are agents,
employees, officers, shareholders, members, managers, partners, or
directors of (A) the purchaser, where any of those individuals was a
resident of this state when the qualified property was purchased or (B)
any affiliated person that was a resident when the qualified property
was purchased. For purposes of this subdivision: (i) persons are affil-
iated persons with respect to each other where one of the persons has an
ownership interest of more than five percent, whether direct or indi-
rect, in the other, or where an ownership interest of more than five
percent, whether direct or indirect, is held in each of the persons by
another person or by a group of other persons that are affiliated
persons with respect to each other; (ii) "qualified property" means
[aircraft,] vessels and motor vehicles; and (iii) "carry" means to take
any person from one point to another, whether for the business purposes
or pleasure of that person. For an exception to the exclusions from the
definition of "retail sale" applicable to [aircraft and] vessels, see
subdivision (q) of section eleven hundred eleven of this article.
(B) NOTWITHSTANDING ANY PROVISION OF THIS ARTICLE TO THE CONTRARY, THE
EXCLUSION IN PARAGRAPH (A) OF THIS SUBDIVISION SHALL NOT APPLY TO THE
USE WITHIN THE STATE OF PROPERTY OR A SERVICE PURCHASED OUTSIDE THIS
STATE BY A NONRESIDENT THAT IS NOT AN INDIVIDUAL, UNLESS SUCH NONRESI-
DENT HAS BEEN DOING BUSINESS OUTSIDE THE STATE FOR AT LEAST SIX MONTHS
PRIOR TO THE DATE SUCH NONRESIDENT BROUGHT SUCH PROPERTY OR SERVICE INTO
THIS STATE.
§ 3. This act shall take effect immediately.
PART DD
Section 1. Section 1105-C of the tax law, as added by section 24-a of
part Y of chapter 63 of the laws of 2000, and subdivision (d) as added
by section 1 of part B of chapter 85 of the laws of 2002, is amended to
read as follows:
§ 1105-C. Reduced tax rates with respect to certain gas service and
electric service. Notwithstanding any other provisions of this article
or article twenty-nine of this chapter:
(a) The rates of taxes imposed by this article and pursuant to the
authority of article twenty-nine of this chapter on receipts from every
sale of gas service or electric service of whatever nature (including
the transportation, transmission or distribution of gas or electricity,
but not including gas or electricity) shall be [reduced each year on
September first, beginning in the year two thousand, and each year ther-
eafter, at the rate per year of twenty-five percent of the rates in
effect on September first, two thousand, so that the rates of such taxes
on such receipts shall be] zero percent [on and after September first,
S. 2009 86 A. 3009
two thousand three] UNLESS THE CHARGE IS BY THE VENDOR FOR TRANSPORTA-
TION, TRANSMISSION OR DISTRIBUTION, REGARDLESS OF WHETHER SUCH CHARGES
ARE SEPARATELY STATED IN THE WRITTEN CONTRACT, IF ANY, OR ON THE BILL
RENDERED TO SUCH PURCHASER AND REGARDLESS OF WHETHER SUCH TRANSPORTA-
TION, TRANSMISSION, OR DISTRIBUTION IS PROVIDED BY SUCH VENDOR OR A
THIRD PARTY.
(b) [The provisions of subdivision (b) of section eleven hundred six
of this article shall apply to the reduced rates described in subdivi-
sion (a) of this section, as if such section referred to this section,
provided that any reference in subdivision (b) of such section eleven
hundred six to the date August first, nineteen hundred sixty-five, shall
be deemed to refer, respectively, to September first of the applicable
years described in subdivision (a) of this section, and any reference in
subdivision (b) of such section eleven hundred six to July thirty-first,
nineteen hundred sixty-five, shall be deemed to refer to the day imme-
diately preceding each such September first, respectively.
(c) Nothing in this section shall be deemed to exempt from the taxes
imposed under this article or pursuant to the authority of article twen-
ty-nine of this chapter any transaction which may not be subject to the
reduced rates of such taxes, each year, as set forth in subdivision (a)
of this section in effect on the respective September first.
(d)] For [the purpose] PURPOSES of [the reduced rate of tax provided
by] subdivision (a) of this section, [the following shall apply to a
sale, other than a sale for resale, of the] WHERE THE transportation,
transmission or distribution of gas or electricity [by a vendor not
subject to the supervision of the public service commission where such
transportation, transmission or distribution service being] IS sold [is]
wholly within a service area of the state wherein the public service
commission [shall have] HAS approved by formal order a single retailer
model for the regulated utility which has the responsibility to serve
that area[. Where such a vendor makes a sale, other than a sale for
resale, of gas or electricity to be delivered to a customer within such
service area and, for the purpose of transporting, transmitting or
distributing such gas or electricity, also makes a sale of transporta-
tion, transmission or distribution service to such customer], the charge
for [the] SUCH transportation, transmission or distribution [of gas or
electricity wholly within such service area made by such vendor,
notwithstanding paragraph three of subdivision (b) of section eleven
hundred one of this article, shall not be included in the receipt for
such gas or electricity, and, therefore,] WHEN MADE BY THE PROVIDER WHO
ALSO SELLS, OTHER THAN AS A SALE FOR RESALE, THE GAS OR ELECTRICITY,
shall qualify for such reduced rate.
§ 2. This act shall take effect immediately.
PART EE
Section 1. Subdivision 1 of section 186-f of the tax law is amended by
adding three new paragraphs (f), (g) and (h) to read as follows:
(F) "PREPAID WIRELESS COMMUNICATIONS SELLER" MEANS A PERSON MAKING A
RETAIL SALE OF PREPAID WIRELESS COMMUNICATIONS SERVICE OR A PREPAID
WIRELESS COMMUNICATIONS DEVICE.
(G) "PREPAID WIRELESS COMMUNICATIONS DEVICE" MEANS ANY EQUIPMENT USED
TO ACCESS A PREPAID WIRELESS COMMUNICATIONS SERVICE.
(H) "PREPAID WIRELESS COMMUNICATIONS SERVICE" MEANS A PREPAID MOBILE
CALLING SERVICE AS DEFINED IN PARAGRAPH TWENTY-TWO OF SUBDIVISION (B) OF
SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER.
S. 2009 87 A. 3009
§ 2. Subdivision 2 of section 186-f of the tax law, as added by
section 3 of part B of chapter 56 of the laws of 2009, is amended to
read as follows:
2. Public safety communications surcharge. (a) (1) A surcharge on
wireless communications service provided to a wireless communications
customer with a place of primary use in this state is imposed at the
rate of one dollar and twenty cents per month on each wireless communi-
cations device in service during any part of each month. The surcharge
must be reflected and made payable on bills rendered to the wireless
communications customer for wireless communication service.
[(b)] (2) Each wireless communications service supplier providing
wireless communications service in New York state must act as a
collection agent for the state for the collection of the surcharge. The
wireless communications service supplier has no legal obligation to
enforce the collection of the surcharge from its customers. However,
each wireless communications service supplier must collect and retain
the name and address of any wireless communications customer with a
place of primary use in this state that refuses or fails to pay the
surcharge, as well as the cumulative amount of the surcharge remaining
unpaid, and must provide this information to the commissioner at the
time and according to the procedures the commissioner may provide. The
surcharge must be reported and paid to the commissioner on a quarterly
basis on or before the fifteenth day of the month following each quar-
terly period ending on the last day of February, May, August and Novem-
ber, respectively. The payments must be accompanied by a return in the
form and containing the information the commissioner may prescribe.
[(c)] (3) The surcharge must be added as a separate line item to bills
furnished by a wireless communications service supplier to its custom-
ers, and must be identified as the "public safety communications
surcharge". Each wireless communications customer who is subject to the
provisions of this section remains liable to the state for the surcharge
due under this section until it has been paid to the state, except that
payment to a wireless communications service supplier is sufficient to
relieve the customer from further liability for the surcharge.
[(d) Each wireless communications service supplier is entitled to
retain, as an administrative fee, an amount equal to two percent of
fifty-eight and three-tenths percent of the total collections of the
surcharge imposed by this section, provided that the supplier files any
required return and remits the surcharge due to the commissioner on or
before its due date.]
(B)(1) A SURCHARGE IS IMPOSED ON THE RETAIL SALE OF EACH PREPAID WIRE-
LESS COMMUNICATIONS SERVICE OR DEVICE AT THE RATE OF: (I) SIXTY CENTS
PER RETAIL SALE THAT DOES NOT EXCEED THIRTY DOLLARS; AND (II) ONE DOLLAR
AND TWENTY CENTS PER RETAIL SALE THAT EXCEEDS THIRTY DOLLARS.
(2) FOR PURPOSES OF THIS PARAGRAPH, A SALE OF A PREPAID WIRELESS
COMMUNICATIONS SERVICE OR DEVICE OCCURS IN THIS STATE IF THE SALE TAKES
PLACE AT A SELLER'S BUSINESS LOCATION IN THE STATE. IF THE SALE DOES NOT
TAKE PLACE AT THE SELLER'S PLACE OF BUSINESS, IT SHALL BE CONCLUSIVELY
DETERMINED TO TAKE PLACE AT THE PURCHASER'S SHIPPING ADDRESS OR, IF
THERE IS NO ITEM SHIPPED, AT THE PURCHASER'S BILLING ADDRESS, OR, IF THE
SELLER DOES NOT HAVE THAT ADDRESS, AT SUCH ADDRESS AS APPROVED BY THE
COMMISSIONER THAT REASONABLY REFLECTS THE CUSTOMER'S LOCATION AT THE
TIME OF THE SALE OF THE PREPAID WIRELESS COMMUNICATIONS SERVICE OR
DEVICE.
(3) EACH PREPAID WIRELESS COMMUNICATIONS SELLER IN NEW YORK STATE MUST
ACT AS A COLLECTION AGENT FOR THE STATE FOR THE COLLECTION OF THE
S. 2009 88 A. 3009
SURCHARGE. THE SURCHARGE MUST BE REPORTED AND PAID TO THE COMMISSIONER
ON A QUARTERLY BASIS ON OR BEFORE THE FIFTEENTH DAY OF THE MONTH FOLLOW-
ING EACH QUARTERLY PERIOD ENDING ON THE LAST DAY OF FEBRUARY, MAY,
AUGUST AND NOVEMBER, RESPECTIVELY. THE PAYMENTS MUST BE ACCOMPANIED BY A
RETURN IN THE FORM AND CONTAINING THE INFORMATION THE COMMISSIONER MAY
PRESCRIBE.
(4) THE SURCHARGE MUST BE ADDED AS A SEPARATE LINE ITEM TO A SALES
SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT OF THE PRICE, IF ANY, THAT IS
FURNISHED BY A PREPAID WIRELESS COMMUNICATIONS SELLER TO A PURCHASER,
AND MUST BE IDENTIFIED AS THE "PUBLIC SAFETY COMMUNICATIONS SURCHARGE."
EACH PURCHASER OF A PREPAID WIRELESS COMMUNICATIONS SERVICE OR DEVICE IN
THIS STATE REMAINS LIABLE TO THE STATE FOR THE SURCHARGE DUE UNDER THIS
SECTION UNTIL IT HAS BEEN PAID TO THE STATE, EXCEPT THAT PAYMENT TO A
PREPAID WIRELESS COMMUNICATIONS SELLER IS SUFFICIENT TO RELIEVE THE
PURCHASER FROM FURTHER LIABILITY FOR SUCH SURCHARGE.
§ 3. The county law is amended by adding a new section 309 to read as
follows:
§ 309. ESTABLISHMENT OF PREPAID WIRELESS SURCHARGE FOR SYSTEM COSTS.
1. DEFINITIONS. WHEN USED IN THIS ARTICLE, WHERE NOT OTHERWISE SPECIF-
ICALLY DEFINED AND UNLESS THE SPECIFIC CONTEXT CLEARLY INDICATES OTHER-
WISE:
(A) "PREPAID WIRELESS COMMUNICATIONS SELLER" MEANS A PERSON MAKING A
RETAIL SALE OF PREPAID WIRELESS COMMUNICATIONS SERVICE OR A PREPAID
WIRELESS COMMUNICATIONS DEVICE.
(B) "PREPAID WIRELESS COMMUNICATIONS DEVICE" MEANS ANY EQUIPMENT USED
TO ACCESS A PREPAID WIRELESS COMMUNICATIONS SERVICE.
(C) "PREPAID WIRELESS COMMUNICATIONS SERVICE" MEANS A PREPAID MOBILE
CALLING SERVICE AS DEFINED IN PARAGRAPH TWENTY-TWO OF SUBDIVISION (B) OF
SECTION ELEVEN HUNDRED ONE OF THE TAX LAW.
2. NOTWITHSTANDING THE PROVISIONS OF ANY LAW TO THE CONTRARY, ANY
MUNICIPALITY, AS DEFINED IN SECTION THREE HUNDRED ONE OF THIS ARTICLE,
THAT IS AUTHORIZED TO IMPOSE AN ENHANCED EMERGENCY TELEPHONE SYSTEM
SURCHARGE ON WIRELESS COMMUNICATIONS SERVICE UNDER THIS ARTICLE, IS
HEREBY AUTHORIZED AND EMPOWERED TO ADOPT, AMEND OR REPEAL LOCAL LAWS,
ACTING THROUGH ITS BOARD, TO IMPOSE A SURCHARGE ON THE RETAIL SALE OF
EACH PREPAID WIRELESS COMMUNICATIONS SERVICE OR DEVICE, IN AN AMOUNT NOT
TO EXCEED THIRTY CENTS PER RETAIL SALE WITHIN SUCH MUNICIPALITY. THE
PROCEEDS FROM SUCH SURCHARGE SHALL BE USED TO PAY FOR THE COSTS ASSOCI-
ATED WITH OBTAINING, OPERATING AND MAINTAINING THE TELECOMMUNICATION
EQUIPMENT AND TELEPHONE SERVICES NEEDED TO PROVIDE AN ENHANCED 911 EMER-
GENCY TELEPHONE SYSTEM TO SERVE SUCH MUNICIPALITY.
3. FOR PURPOSES OF THIS SECTION, A SALE OF A PREPAID WIRELESS COMMUNI-
CATIONS SERVICE OR DEVICE OCCURS IN A MUNICIPALITY IF THE SALE TAKES
PLACE AT A SELLER'S BUSINESS LOCATION IN THE MUNICIPALITY. IF THE SALE
DOES NOT TAKE PLACE AT THE SELLER'S PLACE OF BUSINESS, IT SHALL BE
CONCLUSIVELY DETERMINED TO TAKE PLACE AT THE PURCHASER'S SHIPPING
ADDRESS IN THE MUNICIPALITY OR, IF THERE IS NO ITEM SHIPPED, AT THE
PURCHASER'S BILLING ADDRESS IN THE MUNICIPALITY, OR, IF THE SELLER DOES
NOT HAVE THAT ADDRESS, AT SUCH ADDRESS THAT REASONABLY REFLECTS THE
CUSTOMER'S LOCATION AT THE TIME OF THE SALE OF THE PREPAID WIRELESS
COMMUNICATIONS SERVICE OR DEVICE.
4. ANY SUCH LOCAL LAW SHALL STATE THE AMOUNT OF THE SURCHARGE AND THE
DATE ON WHICH SELLERS IN THE MUNICIPALITY SHALL BEGIN TO COLLECT SUCH
SURCHARGE. ANY SELLER OF A PREPAID WIRELESS COMMUNICATIONS SERVICE OR
DEVICE WITHIN A MUNICIPALITY THAT HAS IMPOSED A SURCHARGE PURSUANT TO
THE PROVISIONS OF THIS SECTION SHALL BE GIVEN A MINIMUM OF FORTY-FIVE
S. 2009 89 A. 3009
DAYS WRITTEN NOTICE PRIOR TO THE DATE IT SHALL BE REQUIRED TO BEGIN TO
COLLECT SUCH SURCHARGE OR PRIOR TO ANY MODIFICATION TO OR CHANGE IN THE
SURCHARGE AMOUNT.
5. (A) EACH PREPAID WIRELESS COMMUNICATIONS SELLER IN A MUNICIPALITY
SHALL ACT AS COLLECTION AGENT FOR SUCH MUNICIPALITY AND SHALL REMIT THE
FUNDS COLLECTED PURSUANT TO A SURCHARGE IMPOSED UNDER THE PROVISIONS OF
THIS SECTION TO THE CHIEF FISCAL OFFICER OF THE MUNICIPALITY EVERY
MONTH. SUCH FUNDS SHALL BE REMITTED NO LATER THAN THIRTY DAYS AFTER THE
LAST BUSINESS DAY OF THE MONTH.
(B) THE SELLER SHALL BE ENTITLED TO RETAIN, AS AN ADMINISTRATIVE FEE,
AN AMOUNT EQUAL TO TWO PERCENT OF ITS COLLECTIONS OF THE SURCHARGE
IMPOSED UNDER THIS ARTICLE.
(C) THE SURCHARGE SHALL BE ADDED TO AND STATED SEPARATELY ON A SALES
SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT OF THE PRICE, IF ANY, THAT IS
PROVIDED TO THE PURCHASER.
(D) THE SELLER SHALL PROVIDE TO THE MUNICIPALITY AN ACCOUNTING OF THE
SURCHARGE AMOUNTS COLLECTED NO MORE FREQUENTLY THAN ANNUALLY UPON WRIT-
TEN REQUEST FROM THE MUNICIPALITY'S CHIEF FISCAL OFFICER.
(E) EACH PURCHASER OF A PREPAID WIRELESS COMMUNICATIONS SERVICE OR
DEVICE IN A MUNICIPALITY THAT HAS IMPOSED SUCH SURCHARGE SHALL BE LIABLE
TO THE MUNICIPALITY FOR THE SURCHARGE UNTIL IT HAS BEEN PAID TO THE
MUNICIPALITY, EXCEPT THAT PAYMENT TO A PREPAID WIRELESS COMMUNICATIONS
SELLER IS SUFFICIENT TO RELIEVE THE PURCHASER FROM FURTHER LIABILITY FOR
SUCH SURCHARGE.
6. ALL SURCHARGE MONIES REMITTED TO A MUNICIPALITY BY A PREPAID WIRE-
LESS COMMUNICATIONS SELLER SHALL BE EXPENDED ONLY UPON AUTHORIZATION OF
THE LEGISLATIVE BODY OF A MUNICIPALITY AND ONLY FOR PAYMENT OF ELIGIBLE
WIRELESS 911 SERVICE COSTS AS DEFINED IN SUBDIVISION SIXTEEN OF SECTION
THREE HUNDRED TWENTY-FIVE OF THIS CHAPTER. THE MUNICIPALITY SHALL SEPA-
RATELY ACCOUNT FOR AND KEEP ADEQUATE BOOKS AND RECORDS OF THE AMOUNT AND
SOURCE OF ALL SUCH MONIES AND OF THE AMOUNT AND OBJECT OR PURPOSE OF ALL
EXPENDITURES THEREOF. IF, AT THE END OF ANY FISCAL YEAR, THE TOTAL
AMOUNT OF ALL SUCH MONIES EXCEEDS THE AMOUNT NECESSARY FOR PAYMENT OF
THE ABOVE MENTIONED COSTS IN SUCH FISCAL YEAR, SUCH EXCESS SHALL BE
RESERVED AND CARRIED OVER FOR THE PAYMENT OF THOSE COSTS IN THE FOLLOW-
ING FISCAL YEAR.
§ 4. This act shall take effect December 1, 2017.
PART FF
Section 1. Subdivision 8 of section 1399-n of the public health law,
as amended by chapter 13 of the laws of 2003, is amended and a new
subdivision 9 is added to read as follows:
8. "Smoking" means the burning of a lighted cigar, cigarette, pipe or
any other matter or substance which contains tobacco, THE BURNING OF AN
HERBAL CIGARETTE, OR THE USE OF A VAPOR PRODUCT.
9. "VAPOR PRODUCT" MEANS ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS
OF THE PRESENCE OF NICOTINE THEREIN, THAT IS MANUFACTURED INTO A
FINISHED PRODUCT FOR USE IN AN ELECTRONIC CIGARETTE, ELECTRONIC CIGAR,
ELECTRONIC CIGARILLO, ELECTRONIC PIPE, VAPING PEN, HOOKAH PEN OR OTHER
SIMILAR DEVICE. "VAPOR PRODUCT" SHALL NOT INCLUDE ANY PRODUCT APPROVED
BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION AS A DRUG OR MEDICAL
DEVICE, OR APPROVED FOR USE PURSUANT TO SECTION THREE THOUSAND THREE
HUNDRED SIXTY-TWO OF THIS CHAPTER.
S. 2009 90 A. 3009
§ 2. The article heading of article 13-F of the public health law, as
amended by chapter 448 of the laws of 2012, is amended to read as
follows:
REGULATION OF TOBACCO PRODUCTS, HERBAL CIGARETTES AND [SMOKING
PARAPHERNALIA] VAPOR PRODUCTS; DISTRIBUTION TO MINORS
§ 3. Subdivisions 5, 8, and 13 of section 1399-aa of the public health
law, subdivision 5 as amended by chapter 152 of the laws of 2004, subdi-
vision 8 as added by chapter 13 of the laws of 2003, and subdivision 13
as amended by chapter 542 of the laws of 2014, are amended to read as
follows:
5. "Tobacco products" means one or more cigarettes or cigars, bidis,
chewing tobacco, powdered tobacco, SHISHA nicotine water or any other
PRODUCT CONTAINING OR DERIVED FROM tobacco [products].
8. "Tobacco business" means a sole proprietorship, corporation, limit-
ed liability company, partnership or other enterprise in which the
primary activity is the sale, manufacture or promotion of tobacco,
tobacco products, VAPOR PRODUCTS, and accessories, either at wholesale
or retail, and in which the sale, manufacture or promotion of other
products is merely incidental.
13. ["Electronic cigarette" or "e-cigarette" means an electronic
device that delivers vapor which is inhaled by an individual user, and
shall include any refill, cartridge and any other component of such a
device.] "VAPOR PRODUCT" MEANS ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARD-
LESS OF THE PRESENCE OF NICOTINE THEREIN, THAT IS MANUFACTURED INTO A
FINISHED PRODUCT FOR USE IN AN ELECTRONIC CIGARETTE, ELECTRONIC CIGAR,
ELECTRONIC CIGARILLO, ELECTRONIC PIPE, VAPING PEN, HOOKAH PEN OR OTHER
SIMILAR DEVICE. "VAPOR PRODUCT" SHALL NOT INCLUDE ANY PRODUCT APPROVED
BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION AS A DRUG OR MEDICAL
DEVICE, OR APPROVED FOR USE PURSUANT TO SECTION THREE THOUSAND THREE
HUNDRED SIXTY-TWO OF THIS CHAPTER.
§ 4. Section 1399-bb of the public health law, as amended by chapter
508 of the laws of 2000, subdivision 2 as amended by chapter 13 of the
laws of 2003, is amended to read as follows:
§ 1399-bb. Distribution of tobacco products [or], herbal cigarettes,
OR VAPOR PRODUCTS without charge. 1. No person engaged in the business
of selling or otherwise distributing tobacco products [or], herbal ciga-
rettes, OR VAPOR PRODUCTS for commercial purposes, or any agent or
employee of such person, shall knowingly, in furtherance of such busi-
ness:
(a) distribute without charge any tobacco products [or], herbal ciga-
rettes, OR VAPOR PRODUCTS to any individual, provided that the distrib-
ution of a package containing tobacco products [or], herbal cigarettes,
OR VAPOR PRODUCTS in violation of this subdivision shall constitute a
single violation without regard to the number of items in the package;
or
(b) distribute coupons which are redeemable for tobacco products [or],
herbal cigarettes, OR VAPOR PRODUCTS to any individual, provided that
this subdivision shall not apply to coupons contained in newspapers,
magazines or other types of publications, coupons obtained through the
purchase of tobacco products [or], herbal cigarettes, OR VAPOR PRODUCTS
or obtained at locations which sell tobacco products [or], herbal ciga-
rettes, OR VAPOR PRODUCTS provided that such distribution is confined to
a designated area or to coupons sent through the mail.
2. The prohibitions contained in subdivision one of this section shall
not apply to the following locations:
S. 2009 91 A. 3009
(a) private social functions when seating arrangements are under the
control of the sponsor of the function and not the owner, operator,
manager or person in charge of such indoor area;
(b) conventions and trade shows; provided that the distribution is
confined to designated areas generally accessible only to persons over
the age of eighteen;
(c) events sponsored by tobacco [or], herbal cigarette, OR VAPOR PROD-
UCT manufacturers provided that the distribution is confined to desig-
nated areas generally accessible only to persons over the age of eigh-
teen;
(d) bars as defined in subdivision one of section thirteen hundred
ninety-nine-n of this chapter;
(e) tobacco businesses as defined in subdivision eight of section
thirteen hundred ninety-nine-aa of this article;
(f) factories as defined in subdivision nine of section thirteen
hundred ninety-nine-aa of this article and construction sites; provided
that the distribution is confined to designated areas generally accessi-
ble only to persons over the age of eighteen.
3. No person shall distribute tobacco products [or], herbal
cigarettes, OR VAPOR PRODUCTS at the locations set forth in paragraphs
(b), (c) and (f) of subdivision two of this section unless such person
gives five days written notice to the enforcement officer.
4. The distribution of tobacco products [or], herbal cigarettes, OR
VAPOR PRODUCTS pursuant to subdivision two of this section shall be made
only to an individual who demonstrates, through (A) a driver's license
or [other photographic] NON-DRIVER'S identification card issued by [a
government entity or educational institution] THE COMMISSIONER OF MOTOR
VEHICLES, THE FEDERAL GOVERNMENT, ANY UNITED STATES TERRITORY, COMMON-
WEALTH OR POSSESSION, THE DISTRICT OF COLUMBIA, A STATE GOVERNMENT WITH-
IN THE UNITED STATES OR A PROVINCIAL GOVERNMENT OF THE DOMINION OF CANA-
DA, OR (B) A VALID PASSPORT ISSUED BY THE UNITED STATES GOVERNMENT OR
ANY OTHER COUNTRY, OR (C) AN IDENTIFICATION CARD ISSUED BY THE ARMED
FORCES OF THE UNITED STATES, indicating that the individual is at least
eighteen years of age. Such identification need not be required of any
individual who reasonably appears to be at least twenty-five years of
age; provided, however, that such appearance shall not constitute a
defense in any proceeding alleging the sale of a tobacco product [or],
herbal cigarette, OR VAPOR PRODUCTS to an individual.
§ 5. The section heading of section 1399-cc of the public health law,
as amended by chapter 542 of the laws of 2014, is amended to read as
follows:
Sale of tobacco products, herbal cigarettes, [liquid nicotine, shisha,
rolling papers] VAPOR PRODUCTS or smoking paraphernalia to minors
prohibited.
§ 6. Subdivisions 2, 3, 4, and 7 of section 1399-cc of the public
health law, as amended by chapter 542 of the laws of 2014 are amended to
read as follows:
2. Any person operating a place of business wherein tobacco products,
herbal cigarettes, [liquid nicotine, shisha] or [electronic cigarettes]
VAPOR PRODUCTS, are sold or offered for sale is prohibited from selling
such products, herbal cigarettes, [liquid nicotine, shisha, electronic
cigarettes] VAPOR PRODUCTS or smoking paraphernalia to individuals under
eighteen years of age, and shall post in a conspicuous place a sign upon
which there shall be imprinted the following statement, "SALE OF CIGA-
RETTES, CIGARS, [CHEWING TOBACCO, POWDERED TOBACCO,] SHISHA OR OTHER
TOBACCO PRODUCTS, HERBAL CIGARETTES, [LIQUID NICOTINE, ELECTRONIC CIGA-
S. 2009 92 A. 3009
RETTES] VAPOR PRODUCTS, [ROLLING PAPERS] OR SMOKING PARAPHERNALIA, TO
PERSONS UNDER EIGHTEEN YEARS OF AGE IS PROHIBITED BY LAW." Such sign
shall be printed on a white card in red letters at least one-half inch
in height.
3. Sale of tobacco products, herbal cigarettes, [liquid nicotine,
shisha] or [electronic cigarettes] VAPOR PRODUCTS in such places, other
than by a vending machine, shall be made only to an individual who
demonstrates, through (a) a valid driver's license or non-driver's iden-
tification card issued by the commissioner of motor vehicles, the feder-
al government, any United States territory, commonwealth or possession,
the District of Columbia, a state government within the United States or
a provincial government of the dominion of Canada, or (b) a valid pass-
port issued by the United States government or any other country, or (c)
an identification card issued by the armed forces of the United States,
indicating that the individual is at least eighteen years of age. Such
identification need not be required of any individual who reasonably
appears to be at least twenty-five years of age, provided, however, that
such appearance shall not constitute a defense in any proceeding alleg-
ing the sale of a tobacco product, herbal cigarettes, [liquid nicotine,
shisha] or [electronic cigarettes] VAPOR PRODUCTS to an individual under
eighteen years of age.
4. (a) Any person operating a place of business wherein tobacco
products, herbal cigarettes, [liquid nicotine, shisha] or [electronic
cigarettes] VAPOR PRODUCTS are sold or offered for sale may perform a
transaction scan as a precondition for such purchases.
(b) In any instance where the information deciphered by the trans-
action scan fails to match the information printed on the driver's
license or non-driver identification card, or if the transaction scan
indicates that the information is false or fraudulent, the attempted
transaction shall be denied.
(c) In any proceeding pursuant to section thirteen hundred ninety-
nine-ee of this article, it shall be an affirmative defense that such
person had produced a driver's license or non-driver identification card
apparently issued by a governmental entity, successfully completed that
transaction scan, and that the tobacco product, herbal cigarettes [or
liquid nicotine], OR VAPOR PRODUCTS had been sold, delivered or given to
such person in reasonable reliance upon such identification and trans-
action scan. In evaluating the applicability of such affirmative defense
the commissioner shall take into consideration any written policy
adopted and implemented by the seller to effectuate the provisions of
this chapter. Use of a transaction scan shall not excuse any person
operating a place of business wherein tobacco products, herbal ciga-
rettes, [liquid nicotine, shisha] or [electronic cigarettes] VAPOR
PRODUCTS are sold, or the agent or employee of such person, from the
exercise of reasonable diligence otherwise required by this chapter.
Notwithstanding the above provisions, any such affirmative defense shall
not be applicable in any civil or criminal proceeding, or in any other
forum.
7. No person operating a place of business wherein tobacco products,
herbal cigarettes, [liquid nicotine, shisha] or [electronic cigarettes]
VAPOR PRODUCTS are sold or offered for sale shall sell, permit to be
sold, offer for sale or display for sale any tobacco product, herbal
cigarettes, [liquid nicotine, shisha] or [electronic cigarettes] VAPOR
PRODUCTS in any manner, unless such products and cigarettes are stored
for sale (a) behind a counter in an area accessible only to the person-
nel of such business, or (b) in a locked container[; provided, however,
S. 2009 93 A. 3009
such restriction shall not apply to tobacco businesses, as defined in
subdivision eight of section thirteen hundred ninety-nine-aa of this
article, and to places to which admission is restricted to persons eigh-
teen years of age or older].
§ 7. Section 1399-dd of the public health law, as amended by chapter
448 of the laws of 2012, is amended to read as follows:
§ 1399-dd. Sale of tobacco products, herbal cigarettes or [electronic
cigarettes] VAPOR PRODUCTS in vending machines. No person, firm, part-
nership, company or corporation shall operate a vending machine which
dispenses tobacco products, herbal cigarettes or [electronic cigarettes]
VAPOR PRODUCTS unless such machine is located: (a) in a bar as defined
in subdivision one of section thirteen hundred ninety-nine-n of this
chapter, or the bar area of a food service establishment with a valid,
on-premises full liquor license; (b) in a private club; (c) in a tobacco
business as defined in subdivision eight of section thirteen hundred
ninety-nine-aa of this article; or (d) in a place of employment which
has an insignificant portion of its regular workforce comprised of
people under the age of eighteen years and only in such locations that
are not accessible to the general public; provided, however, that in
such locations the vending machine is located in plain view and under
the direct supervision and control of the person in charge of the
location or his or her designated agent or employee.
§ 8. Subdivision 2 of section 1399-ee of the public health law, as
amended by chapter 162 of the laws of 2002, is amended to read as
follows:
2. If the enforcement officer determines after a hearing that a
violation of this article has occurred, he or she shall impose a civil
penalty of a minimum of three hundred dollars, but not to exceed one
thousand dollars for a first violation, and a minimum of five hundred
dollars, but not to exceed one thousand five hundred dollars for each
subsequent violation, unless a different penalty is otherwise provided
in this article. The enforcement officer shall advise the retail dealer
that upon the accumulation of three or more points pursuant to this
section the department of taxation and finance shall suspend the deal-
er's registration. If the enforcement officer determines after a hearing
that a retail dealer was selling tobacco products OR VAPOR PRODUCTS
while their registration was suspended or permanently revoked pursuant
to subdivision three or four of this section, he or she shall impose a
civil penalty of twenty-five hundred dollars.
§ 9. Subdivision 1 of section 1399-ff of the public health law, as
amended by chapter 448 of the laws of 2012, is amended to read as
follows:
1. Where a civil penalty for a particular incident has not been
imposed or an enforcement action regarding an alleged violation for a
particular incident is not pending under section thirteen hundred nine-
ty-nine-ee of this article, a parent or guardian of a minor to whom
tobacco products, herbal cigarettes or [electronic cigarettes] VAPOR
PRODUCTS are sold or distributed in violation of this article may submit
a complaint to an enforcement officer setting forth the name and address
of the alleged violator, the date of the alleged violation, the name and
address of the complainant and the minor, and a brief statement describ-
ing the alleged violation. The enforcement officer shall notify the
alleged violator by certified or registered mail, return receipt
requested, that a complaint has been submitted, and shall set a date, at
least fifteen days after the mailing of such notice, for a hearing on
S. 2009 94 A. 3009
the complaint. Such notice shall contain the information submitted by
the complainant.
§ 10. Section 1399-hh of the public health law, as added by chapter
433 of the laws of 1997, is amended to read as follows:
§ 1399-hh. Tobacco AND VAPOR PRODUCTS enforcement. The commissioner
shall develop, plan and implement a comprehensive program to reduce the
prevalence of tobacco AND VAPOR PRODUCTS use, particularly among persons
less than eighteen years of age. This program shall include, but not be
limited to, support for enforcement of article thirteen-F of this chap-
ter.
1. An enforcement officer, as defined in section thirteen hundred
ninety-nine-t of this chapter, may annually, on such dates as shall be
fixed by the commissioner, submit an application for such monies as are
made available for such purpose. Such application shall be in such form
as prescribed by the commissioner and shall include, but not be limited
to, plans regarding random spot checks, including the number and types
of compliance checks that will be conducted, and other activities to
determine compliance with this article. Each such plan shall include an
agreement to report to the commissioner: the names and addresses of
tobacco retailers and vendors determined to be unlicensed, if any; the
number of complaints filed against licensed tobacco retail outlets; and
the names of tobacco retailers and vendors who have paid fines, or have
been otherwise penalized, due to enforcement actions.
2. The commissioner shall distribute such monies as are made available
for such purpose to enforcement officers and, in so doing, consider the
number of retail locations registered to sell tobacco products within
the jurisdiction of the enforcement officer and the level of proposed
activities.
3. Monies made available to enforcement officers pursuant to this
section shall only be used for local tobacco, HERBAL CIGARETTE AND VAPOR
PRODUCTS enforcement activities approved by the commissioner.
§ 11. The public health law is amended by adding a new section
1399-mm-1 to read as follows:
§ 1399-MM-1. VAPOR PRODUCTS; CHILD-RESISTANT CONTAINERS REQUIRED. NO
PERSON ENGAGED IN THE BUSINESS OF MANUFACTURING, SELLING OR OTHERWISE
DISTRIBUTING VAPOR PRODUCTS, MAY SELL ANY COMPONENT OF SUCH SYSTEMS THAT
CONTAINS NICOTINE, INCLUDING ANY REFILL, CARTRIDGE, OR OTHER COMPONENT,
UNLESS SUCH COMPONENT CONSTITUTES "SPECIAL PACKAGING" FOR THE PROTECTION
OF CHILDREN, AS DEFINED IN 15 U.S.C. 1471 OR ANY SUPERSEDING STATUTE.
§ 12. Subdivision 2 of section 409 of the education law, as amended by
chapter 449 of the laws of 2012, is amended to read as follows:
2. Notwithstanding the provisions of any other law, rule or regu-
lation, tobacco, HERBAL CIGARETTE, AND VAPOR PRODUCTS use shall not be
permitted and no person shall use [tobacco] SUCH PRODUCTS on school
grounds. "School grounds" means any building, structure and surrounding
outdoor grounds, including entrances or exits, contained within a public
or private pre-school, nursery school, elementary or secondary school's
legally defined property boundaries as registered in a county clerk's
office.
§ 13. Section 3624 of the education law, as amended by chapter 529 of
the laws of 2002, is amended to read as follows:
§ 3624. Drivers, monitors and attendants. The commissioner shall
determine and define the qualifications of drivers, monitors and attend-
ants and shall make the rules and regulations governing the operation of
all transportation facilities used by pupils which rules and regulations
shall include, but not be limited to, a maximum speed of fifty-five
S. 2009 95 A. 3009
miles per hour for school vehicles engaged in pupil transportation that
are operated on roads, interstates or other highways, parkways or bridg-
es or portions thereof that have posted speed limits in excess of
fifty-five miles per hour, prohibitions relating to smoking AND USE OF
VAPOR PRODUCTS, eating and drinking and any and all other acts or
conduct which would otherwise impair the safe operation of such trans-
portation facilities while actually being used for the transport of
pupils. The employment of each driver, monitor and attendant shall be
approved by the chief school administrator of a school district for each
school bus operated within his or her district. For the purpose of
determining his or her physical fitness, each driver, monitor and
attendant may be examined on order of the chief school administrator by
a duly licensed physician within two weeks prior to the beginning of
service in each school year as a school bus driver, monitor or attend-
ant. The report of the physician, in writing, shall be considered by the
chief school administrator in determining the fitness of the driver to
operate or continue to operate any transportation facilities used by
pupils and in determining the fitness of any monitor or attendant to
carry out his or her functions on such transportation facilities. Noth-
ing in this section shall prohibit a school district from imposing a
more restrictive speed limit policy for the operation of school vehicles
engaged in pupil transportation than the speed limit policy established
by the commissioner.
§ 14. Subdivision 2 of section 470 of the tax law, as amended by
section 15 of part D of chapter 134 of the laws of 2010, is amended to
read as follows:
2. "Tobacco products." Any cigar, including a little cigar, A VAPOR
PRODUCT, or tobacco, other than cigarettes, intended for consumption by
smoking, chewing, INHALING VAPORS, or as snuff.
§ 15. Subdivision 12 of section 470 of the tax law, as added by chap-
ter 61 of the laws of 1989, is amended to read as follows:
12. "Distributor." Any person who imports or causes to be imported
into this state any tobacco product (in excess of fifty cigars [or], one
pound of tobacco, OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT) for sale,
or who manufactures any tobacco product in this state, and any person
within or without the state who is authorized by the commissioner of
taxation and finance to make returns and pay the tax on tobacco products
sold, shipped or delivered by him to any person in the state.
§ 16. Section 470 of the tax law is amended by adding a new subdivi-
sion 20 to read as follows:
20. "VAPOR PRODUCT." ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS OF
THE PRESENCE OF NICOTINE THEREIN, THAT IS MANUFACTURED INTO A FINISHED
PRODUCT FOR USE IN AN ELECTRONIC CIGARETTE, ELECTRONIC CIGAR, ELECTRONIC
CIGARILLO, ELECTRONIC PIPE, VAPING PEN, HOOKAH PEN OR OTHER SIMILAR
DEVICE. "VAPOR PRODUCT" SHALL NOT INCLUDE ANY PRODUCT APPROVED BY THE
UNITED STATES FOOD AND DRUG ADMINISTRATION AS A DRUG OR MEDICAL DEVICE,
OR APPROVED FOR USE PURSUANT TO SECTION THREE THOUSAND THREE HUNDRED
SIXTY-TWO OF THE PUBLIC HEALTH LAW.
§ 17. Subdivision (a) of subdivision 1 of section 471-b of the tax
law, as amended by section 18 of part D of chapter 134 of the laws of
2010, is amended to read as follows:
(a) Such tax on tobacco products other than snuff, [and] little
cigars, AND VAPOR PRODUCTS shall be at the rate of seventy-five percent
of the wholesale price, and is intended to be imposed only once upon the
sale of any tobacco products other than snuff [and], little cigars, AND
VAPOR PRODUCTS.
S. 2009 96 A. 3009
§ 18. Subdivision 1 of section 471-b of the tax law is amended by
adding a new subdivision (d) to read as follows:
(D) SUCH TAX ON VAPOR PRODUCTS SHALL BE AT A RATE OF TEN CENTS PER
FLUID MILLILITER, OR PART THEREOF, OF THE VAPOR PRODUCT. ALL INVOICES
FOR VAPOR PRODUCTS ISSUED BY DISTRIBUTORS AND WHOLESALERS MUST STATE THE
AMOUNT OF VAPOR PRODUCT IN MILLILITERS.
§ 19. The opening paragraph of subdivision (a) of section 471-c of the
tax law, as amended by section 2 of part I1 of chapter 57 of the laws of
2009, is amended to read as follows:
There is hereby imposed and shall be paid a tax on all tobacco
products used in the state by any person, except that no such tax shall
be imposed (1) if the tax provided in section four hundred seventy-one-b
of this article is paid, or (2) on the use of tobacco products which are
exempt from the tax imposed by said section, or (3) on the use of two
hundred fifty cigars or less, or five pounds or less of tobacco other
than roll-your-own tobacco, or thirty-six ounces or less of roll-your-
own tobacco, OR FIVE HUNDRED MILLILITERS OR LESS OF VAPOR PRODUCT
brought into the state on, or in the possession of, any person.
§ 20. Paragraph (i) of subdivision (a) of section 471-c of the tax
law, as amended by section 20 of part D of chapter 134 of the laws of
2010, is amended to read as follows:
(i) Such tax on tobacco products other than snuff [and], little cigars
AND VAPOR PRODUCTS shall be at the rate of seventy-five percent of the
wholesale price.
§ 21. Subdivision (a) of section 471-c of the tax law is amended by
adding a new paragraph (iv) to read as follows:
(IV) SUCH TAX ON VAPOR PRODUCTS SHALL BE AT A RATE OF TEN CENTS PER
FLUID MILLILITER, OR PART THEREOF, OF THE VAPOR PRODUCT. ALL INVOICES
FOR VAPOR PRODUCTS ISSUED BY DISTRIBUTORS AND WHOLESALERS MUST STATE THE
AMOUNT OF VAPOR PRODUCT IN MILLILITERS.
§ 22. Subdivision 2 of section 474 of the tax law, as amended by chap-
ter 552 of the laws of 2008, is amended to read as follows:
2. Every person who shall possess or transport more than two hundred
fifty cigars, or more than five pounds of tobacco other than roll-your-
own tobacco, or more than thirty-six ounces of roll-your-own tobacco, OR
MORE THAN FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT upon the public
highways, roads or streets of the state, shall be required to have in
his actual possession invoices or delivery tickets for such tobacco
products. Such invoices or delivery tickets shall show the name and
address of the consignor or seller, the name and address of the
consignee or purchaser, the quantity and brands of the tobacco products
transported, and the name and address of the person who has or shall
assume the payment of the tax and the wholesale price or the tax paid or
payable. The absence of such invoices or delivery tickets shall be prima
facie evidence that such person is a dealer in tobacco products in this
state and subject to the requirements of this article.
§ 23. Subdivision 3 of section 474 of the tax law, as added by chapter
61 of the laws of 1989, is amended to read as follows:
3. Every dealer or distributor or employee thereof, or other person
acting on behalf of a dealer or distributor, who shall possess or trans-
port more than fifty cigars or more than one pound of tobacco, OR MORE
THAN ONE HUNDRED MILLILITERS OF VAPOR PRODUCT upon the public highways,
roads or streets of the state, shall be required to have in his actual
possession invoices or delivery tickets for such tobacco products. Such
invoices or delivery tickets shall show the name and address of the
consignor or seller, the name and address of the consignee or purchaser,
S. 2009 97 A. 3009
the quantity and brands of the tobacco products transported, and the
name and address of the person who has or shall assume the payment of
the tax and the wholesale price or the tax paid or payable. The absence
of such invoices or delivery tickets shall be prima facie evidence that
the tax imposed by this article on tobacco products has not been paid
and is due and owing.
§ 24. Subparagraph (i) of paragraph (b) of subdivision 1 of section
481 of the tax law, as amended by section 1 of part O of chapter 59 of
the laws of 2013, is amended to read as follows:
(i) In addition to any other penalty imposed by this article, the
commissioner may (A) impose a penalty of not more than six hundred
dollars for each two hundred cigarettes, or fraction thereof, in excess
of one thousand cigarettes in unstamped or unlawfully stamped packages
in the possession or under the control of any person or (B) impose a
penalty of not more than two hundred dollars for each ten unaffixed
false, altered or counterfeit cigarette tax stamps, imprints or
impressions, or fraction thereof, in the possession or under the control
of any person. In addition, the commissioner may impose a penalty of not
more than seventy-five dollars for each fifty cigars [or], one pound of
tobacco, OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction there-
of, in excess of two hundred fifty cigars [or], five pounds of tobacco
OR FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT in the possession or under
the control of any person and a penalty of not more than one hundred
fifty dollars for each fifty cigars [or], pound of tobacco, OR ONE
HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of
five hundred cigars [or], ten pounds of tobacco, OR ONE THOUSAND MILLI-
LITERS OF VAPOR PRODUCT in the possession or under the control of any
person, with respect to which the tobacco products tax has not been paid
or assumed by a distributor or tobacco products dealer; provided, howev-
er, that any such penalty imposed shall not exceed seven thousand five
hundred dollars in the aggregate. The commissioner may impose a penalty
of not more than seventy-five dollars for each fifty cigars [or], one
pound of tobacco, OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or frac-
tion thereof, in excess of fifty cigars [or], one pound of tobacco, OR
ONE HUNDRED MILLILITERS OF VAPOR PRODUCT in the possession or under the
control of any tobacco products dealer or distributor appointed by the
commissioner, and a penalty of not more than one hundred fifty dollars
for each fifty cigars [or], pound of tobacco, OR ONE HUNDRED MILLILITERS
OF VAPOR PRODUCT, or fraction thereof, in excess of two hundred fifty
cigars [or], five pounds of tobacco, OR FIVE HUNDRED MILLILITERS OF
VAPOR PRODUCT, in the possession or under the control of any such dealer
or distributor, with respect to which the tobacco products tax has not
been paid or assumed by a distributor or a tobacco products dealer;
provided, however, that any such penalty imposed shall not exceed
fifteen thousand dollars in the aggregate.
§ 25. Clauses (B) and (C) of subparagraph (ii) of paragraph (b) of
subdivision 1 of section 481 of the tax law, as added by chapter 262 of
the laws of 2000, is amended to read as follows:
(B)(I) not less than twenty-five dollars but not more than one hundred
dollars for each fifty cigars [or], one pound of tobacco, OR ONE HUNDRED
MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of two
hundred fifty cigars [or], five pounds of tobacco, OR FIVE HUNDRED
MILLILITERS OF VAPOR PRODUCT knowingly in the possession or knowingly
under the control of any person, with respect to which the tobacco
products tax has not been paid or assumed by a distributor or tobacco
products dealer; and
S. 2009 98 A. 3009
(II) not less than fifty dollars but not more than two hundred dollars
for each fifty cigars [or], pound of tobacco, OR ONE HUNDRED MILLILITERS
OF VAPOR PRODUCT, or fraction thereof, in excess of five hundred cigars
[or], ten pounds of tobacco, OR ONE THOUSAND MILLILITERS OF VAPOR PROD-
UCT knowingly in the possession or knowingly under the control of any
person, with respect to which the tobacco products tax has not been paid
or assumed by a distributor or tobacco products dealer; provided, howev-
er, that any such penalty imposed under this clause shall not exceed ten
thousand dollars in the aggregate.
(C)(I) not less than twenty-five dollars but not more than one hundred
dollars for each fifty cigars [or], one pound of tobacco, OR ONE HUNDRED
MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of fifty
cigars [or], one pound of tobacco, OR ONE HUNDRED MILLILITERS OF VAPOR
PRODUCT knowingly in the possession or knowingly under the control of
any person, with respect to which the tobacco products tax has not been
paid or assumed by a distributor or tobacco products dealer; and
(II) not less than fifty dollars but not more than two hundred dollars
for each fifty cigars [or], pound of tobacco, OR ONE HUNDRED MILLILITERS
OF VAPOR PRODUCT, or fraction thereof, in excess of two hundred fifty
cigars [or], five pounds of tobacco, OR FIVE HUNDRED MILLILITERS OF
VAPOR PRODUCT knowingly in the possession or knowingly under the control
of any person, with respect to which the tobacco products tax has not
been paid or assumed by a distributor or a tobacco products dealer;
provided, however, that any such penalty imposed under this clause shall
not exceed twenty thousand dollars in the aggregate.
§ 26. Subdivisions (a) and (h) of section 1814 of the tax law, as
amended by section 28 of subpart I of part V1 of chapter 57 of the laws
of 2009, are amended to read as follows:
(a) Any person who willfully attempts in any manner to evade or defeat
the taxes imposed by article twenty of this chapter or payment thereof
on (i) ten thousand cigarettes or more, (ii) twenty-two thousand cigars
or more, [or] (iii) four hundred forty pounds of tobacco or more, OR
(IV) FORTY-FOUR THOUSAND MILLILITERS OF VAPOR PRODUCT OR MORE or has
previously been convicted two or more times of a violation of paragraph
[one] (I) of this subdivision shall be guilty of a class E felony.
(h) (1) Any dealer, other than a distributor appointed by the commis-
sioner of taxation and finance under article twenty of this chapter, who
shall knowingly transport or have in his custody, possession or under
his control more than ten pounds of tobacco, or more than five hundred
cigars, OR MORE THAN ONE THOUSAND MILLILITERS OF VAPOR PRODUCT upon
which the taxes imposed by article twenty of this chapter have not been
assumed or paid by a distributor appointed by the commissioner of taxa-
tion and finance under article twenty of this chapter, or other person
treated as a distributor pursuant to section four hundred seventy-one-d
of this chapter, shall be guilty of a misdemeanor punishable by a fine
of not more than five thousand dollars or by a term of imprisonment not
to exceed thirty days.
(2) Any person, other than a dealer or a distributor appointed by the
commissioner under article twenty of this chapter, who shall knowingly
transport or have in his custody, possession or under his control more
than fifteen pounds of tobacco, or more than seven hundred fifty cigars,
OR MORE THAN FIFTEEN HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT upon
which the taxes imposed by article twenty of this chapter have not been
assumed or paid by a distributor appointed by the commissioner under
article twenty of this chapter, or other person treated as a distributor
pursuant to section four hundred seventy-one-d of this chapter shall be
S. 2009 99 A. 3009
guilty of a misdemeanor punishable by a fine of not more than five thou-
sand dollars or by a term of imprisonment not to exceed thirty days.
(3) Any person, other than a distributor appointed by the commissioner
under article twenty of this chapter, who shall knowingly transport or
have in his custody, possession or under his control twenty-five hundred
or more cigars, or fifty or more pounds of tobacco, OR FIVE THOUSAND
MILLILITERS OR MORE OF VAPOR PRODUCT upon which the taxes imposed by
article twenty of this chapter have not been assumed or paid by a
distributor appointed by the commissioner under article twenty of this
chapter, or other person treated as a distributor pursuant to section
four hundred seventy-one-d of this chapter shall be guilty of a misde-
meanor. Provided further, that any person who has twice been convicted
under this subdivision shall be guilty of a class E felony for any
subsequent violation of this section, regardless of the amount of tobac-
co products involved in such violation.
(4) For purposes of this subdivision, such person shall knowingly
transport or have in his custody, possession or under his control tobac-
co, [or] cigars, OR VAPOR PRODUCTS on which such taxes have not been
assumed or paid by a distributor appointed by the commissioner where
such person has knowledge of the requirement of the tax on tobacco
products and, where to his knowledge, such taxes have not been assumed
or paid on such tobacco products by a distributor appointed by the
commissioner of taxation and finance.
§ 27. Subdivisions (a) and (b) of section 1814-a of the tax law, as
added by chapter 61 of the laws of 1989, are amended to read as follows:
(a) Any person who, while not appointed as a distributor of tobacco
products pursuant to the provisions of article twenty of this chapter,
imports or causes to be imported into the state more than fifty cigars,
or more than one pound of tobacco, OR MORE THAN ONE HUNDRED MILLILITERS
OF VAPOR PRODUCT for sale within the state, or produces, manufactures or
compounds tobacco products within the state shall be guilty of a misde-
meanor punishable by a fine of not more than five thousand dollars or by
a term of imprisonment not to exceed thirty days. If, within any ninety
day period, one thousand or more cigars, or five hundred pounds or more
of tobacco, OR FIFTY THOUSAND MILLILITERS OR MORE OF VAPOR PRODUCT are
imported or caused to be imported into the state for sale within the
state or are produced, manufactured or compounded within the state by
any person while not appointed as a distributor of tobacco products,
such person shall be guilty of a misdemeanor. Provided further, that any
person who has twice been convicted under this section shall be guilty
of a class E felony for any subsequent violation of this section,
regardless of the amount of tobacco products involved in such violation.
(b) For purposes of this section, the possession or transportation
within this state by any person, other than a tobacco products distribu-
tor appointed by the commissioner of taxation and finance, at any one
time of seven hundred fifty or more cigars [or], fifteen pounds or more
of tobacco, OR FIFTEEN HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT
shall be presumptive evidence that such tobacco products are possessed
or transported for the purpose of sale and are subject to the tax
imposed by section four hundred seventy-one-b of this chapter. With
respect to such possession or transportation, any provisions of article
twenty of this chapter providing for a time period during which the tax
imposed by such article may be paid shall not apply.
§ 28. Subdivision (a) of section 1846-a of the tax law, as amended by
chapter 556 of the laws of 2011, is amended to read as follows:
S. 2009 100 A. 3009
(a) Whenever a police officer designated in section 1.20 of the crimi-
nal procedure law or a peace officer designated in subdivision four of
section 2.10 of such law, acting pursuant to his special duties, shall
discover any tobacco products in excess of five hundred cigars [or], ten
pounds of tobacco, OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT which
are being imported for sale in the state where the person importing or
causing such tobacco products to be imported has not been appointed as a
distributor pursuant to section four hundred seventy-two of this chap-
ter, such police officer or peace officer is hereby authorized and
empowered forthwith to seize and take possession of such tobacco
products. Such tobacco products seized by a police officer or peace
officer shall be turned over to the commissioner. Such seized tobacco
products shall be forfeited to the state. All tobacco products forfeited
to the state shall be destroyed or used for law enforcement purposes,
except that tobacco products that violate, or are suspected of violat-
ing, federal trademark laws or import laws shall not be used for law
enforcement purposes. If the commissioner determines the tobacco
products may not be used for law enforcement purposes, the commissioner
must, within a reasonable time thereafter, upon publication in the state
registry of a notice to such effect before the day of destruction,
destroy such forfeited tobacco products. The commissioner may, prior to
any destruction of tobacco products, permit the true holder of the
trademark rights in the tobacco products to inspect such forfeited
products in order to assist in any investigation regarding such tobacco
products.
§ 29. Subdivision (b) of section 1847 of the tax law, as added by
chapter 61 of the laws of 1989, is amended to read as follows:
(b) Any peace officer designated in subdivision four of section 2.10
of the criminal procedure law, acting pursuant to his special duties, or
any police officer designated in section 1.20 of the criminal procedure
law may seize any vehicle or other means of transportation used to
import tobacco products in excess of five hundred cigars [or], ten
pounds of tobacco, OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT for sale
where the person importing or causing such tobacco products to be
imported has not been appointed a distributor pursuant to section four
hundred seventy-two of this chapter, other than a vehicle or other means
of transportation used by any person as a common carrier in transaction
of business as such common carrier, and such vehicle or other means of
transportation shall be subject to forfeiture as hereinafter in this
section provided.
§ 30. This act shall take effect on the one hundred eightieth day
after it shall have become a law and shall apply to vapor products that
first become subject to taxation under article 20 of the tax law on or
after that date.
PART GG
Section 1. Subdivision (d) of section 1814 of the tax law, as amended
by section 28 of subpart I of part V-1 of chapter 57 of the laws of
2009, is amended to read as follows:
(d) For the purposes of this section, the possession or transportation
within this state by any person, other than an agent, at any one time of
[five] TWO thousand or more cigarettes in unstamped or unlawfully
stamped packages shall be presumptive evidence that such cigarettes are
possessed or transported for the purpose of sale and are subject to the
tax imposed by section four hundred seventy-one of this chapter. With
S. 2009 101 A. 3009
respect to such possession or transportation any provisions of article
twenty of this chapter providing for a time period during which a use
tax imposed by such article may be paid on unstamped cigarettes or
unlawfully or improperly stamped cigarettes or during which such ciga-
rettes may be returned to an agent shall not apply. The possession with-
in this state of more than four hundred cigarettes in unstamped or
unlawfully stamped packages by any person other than an agent at any one
time shall be presumptive evidence that such cigarettes are subject to
tax as provided by article twenty of this chapter.
§ 2. Subdivision (g) of section 1814 of the tax law, as amended by
section 28 of subpart I of part V-1 of chapter 57 of the laws of 2009,
is amended to read as follows:
(g) Any person who falsely or fraudulently makes, alters or counter-
feits any stamp prescribed by the tax commission under the provisions of
article twenty of this chapter, or causes or procures to be falsely or
fraudulently made, altered or counterfeited any such stamp, or knowingly
and willfully utters, purchases, passes or tenders as true any such
false, altered or counterfeited stamp, or knowingly and willfully
possesses any cigarettes in packages bearing any such false, altered or
counterfeited stamp, and any person who knowingly and willfully makes,
causes to be made, purchases or receives any device for forging or coun-
terfeiting any stamp, prescribed by the tax commission under the
provisions of article twenty of this chapter, or who knowingly and will-
fully possesses any such device, shall be guilty of a class [E] C felo-
ny. For the purposes of this subdivision, the words "stamp prescribed by
the tax commission" shall include a stamp, impression or imprint made by
a metering machine, the design of which has been approved by such
commission.
§ 3. This act shall take effect immediately and apply to offenses
committed on and after such effective date.
PART HH
Section 1. The tax law is amended by adding a new section 478-a to
read as follows:
§ 478-A. JEOPARDY ASSESSMENTS. IF THE COMMISSIONER BELIEVES THAT THE
COLLECTION OF ANY TAX WILL BE JEOPARDIZED BY DELAY, HE OR SHE MAY DETER-
MINE THE AMOUNT OF SUCH TAX AND ASSESS THE SAME, TOGETHER WITH ALL
INTEREST AND PENALTIES PROVIDED BY LAW, AGAINST ANY PERSON LIABLE THERE-
FOR PRIOR TO THE FILING OF HIS OR HER RETURN AND PRIOR TO THE DATE WHEN
HIS OR HER RETURN IS REQUIRED TO BE FILED. THE AMOUNT SO DETERMINED
SHALL BECOME DUE AND PAYABLE TO THE COMMISSIONER BY THE PERSON AGAINST
WHOM SUCH A JEOPARDY ASSESSMENT IS MADE, AS SOON AS NOTICE THEREOF IS
GIVEN TO HIM OR HER. THE PROVISIONS OF SECTION FOUR HUNDRED SEVENTY-
EIGHT OF THIS ARTICLE SHALL APPLY TO ANY SUCH DETERMINATION EXCEPT TO
THE EXTENT THAT THEY MAY BE INCONSISTENT WITH THE PROVISIONS OF THIS
SECTION. THE COMMISSIONER MAY ABATE ANY JEOPARDY ASSESSMENT IF HE OR SHE
FINDS THAT JEOPARDY DOES NOT EXIST. THE COLLECTION OF ANY JEOPARDY
ASSESSMENT MAY BE STAYED BY FILING WITH THE COMMISSIONER A BOND ISSUED
BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS STATE AND
APPROVED BY THE SUPERINTENDENT OF FINANCIAL SERVICES AS TO SOLVENCY AND
RESPONSIBILITY, OR SUCH OTHER SECURITY ACCEPTABLE TO THE COMMISSIONER,
CONDITIONED UPON PAYMENT OF THE AMOUNT ASSESSED AND INTEREST THEREON, OR
ANY LESSER AMOUNT TO WHICH SUCH ASSESSMENT MAY BE REDUCED BY THE DIVI-
SION OF TAX APPEALS OR BY A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF
THE CIVIL PRACTICE LAW AND RULES AS PROVIDED IN SECTION FOUR HUNDRED
S. 2009 102 A. 3009
SEVENTY-EIGHT OF THIS ARTICLE, SUCH PAYMENT TO BE MADE WHEN THE ASSESS-
MENT OR ANY SUCH REDUCTION THEREOF BECOMES FINAL AND NOT SUBJECT TO
FURTHER REVIEW. IF SUCH A BOND IS FILED AND THEREAFTER A PROCEEDING
UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES IS
COMMENCED AS PROVIDED IN SECTION FOUR HUNDRED SEVENTY-EIGHT OF THIS
ARTICLE, DEPOSIT OF THE TAXES, INTEREST AND PENALTIES ASSESSED SHALL NOT
BE REQUIRED AS A CONDITION PRECEDENT TO THE COMMENCEMENT OF SUCH
PROCEEDING. WHERE A JEOPARDY ASSESSMENT IS MADE, ANY PROPERTY SEIZED FOR
THE COLLECTION OF THE TAX SHALL NOT BE SOLD: (1) UNTIL EXPIRATION OF THE
TIME TO APPLY FOR A HEARING AS PROVIDED IN SECTION FOUR HUNDRED SEVEN-
TY-EIGHT OF THIS ARTICLE, AND (2) IF SUCH APPLICATION IS TIMELY FILED,
UNTIL THE EXPIRATION OF THE TIME TO FILE AN EXCEPTION TO THE DETERMI-
NATION OF THE ADMINISTRATIVE LAW JUDGE OR, IF AN EXCEPTION IS TIMELY
FILED, UNTIL FOUR MONTHS AFTER THE TAX APPEALS TRIBUNAL HAS GIVEN NOTICE
OF ITS DECISION TO THE PERSON AGAINST WHOM THE ASSESSMENT IS MADE;
PROVIDED, HOWEVER, SUCH PROPERTY MAY BE SOLD AT ANY TIME IF SUCH PERSON
HAS FAILED TO ATTEND A HEARING OF WHICH HE OR SHE HAS BEEN DULY NOTI-
FIED, OR IF HE OR SHE CONSENTS TO THE SALE, OR IF THE COMMISSIONER
DETERMINES THAT THE EXPENSES OF CONSERVATION AND MAINTENANCE WILL GREAT-
LY REDUCE THE NET PROCEEDS, OR IF THE PROPERTY IS PERISHABLE.
§ 2. This act shall take effect immediately.
PART II
Section 1. Paragraph (a) of subdivision 1 of section 471-b of the tax
law, as amended by section 18 of part D of chapter 134 of the laws of
2010, is amended to read as follows:
(a) Such tax on tobacco products other than snuff [and], little
cigars, AND CIGARS shall be at the rate of seventy-five percent of the
wholesale price, and is intended to be imposed only once upon the sale
of any tobacco products other than snuff [and], little cigars AND
CIGARS.
§ 2. Subdivision 1 of section 471-b of the tax law is amended by
adding a new paragraph (d) to read as follows:
(D) SUCH TAX ON CIGARS AS DEFINED IN SUBDIVISION NINETEEN OF SECTION
FOUR HUNDRED SEVENTY OF THIS ARTICLE SHALL BE AT A RATE OF FORTY-FIVE
CENTS PER CIGAR.
§ 3. Paragraph (i) of subdivision (a) of section 471-c of the tax law,
as amended by section 20 of part D of chapter 134 of the laws of 2010,
is amended to read as follows:
(i) Such tax on tobacco products other than snuff [and], little cigars
AND CIGARS shall be at the rate of seventy-five percent of the wholesale
price.
§ 4. Subdivision (a) of section 471-c of the tax law is amended by
adding a new paragraph (iv) to read as follows:
(IV) SUCH TAX ON CIGARS AS DEFINED IN SUBDIVISION NINETEEN OF SECTION
FOUR HUNDRED SEVENTY OF THIS ARTICLE SHALL BE AT A RATE OF FORTY-FIVE
CENTS PER CIGAR.
§ 5. This act shall take effect September 1, 2017.
PART JJ
Section 1. Subdivision (e) of section 1401 of the tax law, as amended
by chapter 760 of the laws of 1992, is amended to read as follows:
(e) "Conveyance" means the transfer or transfers of any interest in
real property by any method, including but not limited to sale,
S. 2009 103 A. 3009
exchange, assignment, surrender, mortgage foreclosure, transfer in lieu
of foreclosure, option, trust indenture, taking by eminent domain,
conveyance upon liquidation or by a receiver, or transfer or acquisition
of a controlling interest in any entity with an interest in real proper-
ty. CONVEYANCE ALSO INCLUDES THE TRANSFER OF AN INTEREST IN A PARTNER-
SHIP, LIMITED LIABILITY CORPORATION, S CORPORATION OR NON-PUBLICLY TRAD-
ED C CORPORATION WITH FEWER THAN ONE HUNDRED SHAREHOLDERS THAT OWNS AN
INTEREST IN REAL PROPERTY THAT IS LOCATED IN NEW YORK AND HAS A FAIR
MARKET VALUE THAT EQUALS OR EXCEEDS FIFTY PERCENT OF ALL THE ASSETS OF
THE ENTITY ON THE DATE OF THE TRANSFER OF AN INTEREST IN THE ENTITY.
ONLY THOSE ASSETS THAT THE ENTITY OWNED FOR AT LEAST TWO YEARS BEFORE
THE DATE OF THE TRANSFER OF THE TAXPAYER'S INTEREST IN THE ENTITY SHALL
BE USED IN DETERMINING THE FAIR MARKET VALUE OF ALL THE ASSETS OF THE
ENTITY ON THE DATE OF THE TRANSFER. Transfer of an interest in real
property shall include the creation of a leasehold or sublease only
where (i) the sum of the term of the lease or sublease and any options
for renewal exceeds forty-nine years, (ii) substantial capital improve-
ments are or may be made by or for the benefit of the lessee or subles-
see, and (iii) the lease or sublease is for substantially all of the
premises constituting the real property. Notwithstanding the foregoing,
conveyance of real property shall not include a conveyance pursuant to
devise, bequest or inheritance; the creation, modification, extension,
spreading, severance, consolidation, assignment, transfer, release or
satisfaction of a mortgage; a mortgage subordination agreement, a mort-
gage severance agreement, an instrument given to perfect or correct a
recorded mortgage; or a release of lien of tax pursuant to this chapter
or the internal revenue code.
§ 2. Subdivision (d) of section 1401 of the tax law is amended by
adding a new paragraph (vi) to read as follows:
(VI) IN THE CASE OF A TRANSFER OF AN INTEREST IN A PARTNERSHIP, LIMIT-
ED LIABILITY CORPORATION, S CORPORATION OR NON-PUBLICLY TRADED C CORPO-
RATION WITH ONE HUNDRED OR FEWER SHAREHOLDERS THAT OWNS REAL PROPERTY
THAT IS LOCATED IN NEW YORK AND HAS A FAIR MARKET VALUE THAT EQUALS OR
EXCEEDS FIFTY PERCENT OF ALL THE ASSETS OF THE ENTITY ON THE DATE OF THE
TRANSFER OF AN INTEREST IN THE ENTITY, THE CONSIDERATION FOR THE CONVEY-
ANCE SHALL BE CALCULATED BY MULTIPLYING (1) THE FAIR MARKET VALUE OF THE
REAL PROPERTY THAT IS LOCATED IN NEW YORK THAT IS OWNED BY THE ENTITY
AND (2) THE PERCENTAGE OF THE ENTITY THAT IS TRANSFERRED.
§ 3. This act shall take effect immediately and shall apply to trans-
fers occurring on and after the effective date.
PART KK
Section 1. Section 1402-a of the tax law is amended by adding a new
subdivision (b-1) to read as follows:
(B-1) THE COMMISSIONER IS AUTHORIZED TO TREAT AS SUBJECT TO TAX UNDER
THIS SECTION ANY CONVEYANCE OF AN INTEREST IN REAL PROPERTY MADE PURSU-
ANT TO AN AGREEMENT, UNDERSTANDING OR ARRANGEMENT THAT RESULTS IN THE
AVOIDANCE OR EVASION OF THE TAX IMPOSED BY THIS SECTION.
§ 2. This act shall take effect immediately.
PART LL
Section 1. Section 902 of the racing, pari-mutuel wagering and breed-
ing law, as amended by chapter 60 of the laws of 1993, subdivision 1 as
S. 2009 104 A. 3009
amended by chapter 15 of the laws of 2010 and subdivision 2 as amended
by chapter 18 of the laws of 2008, is amended to read as follows:
§ 902. Equine drug testing and expenses. 1. In order to assure the
public's confidence and continue the high degree of integrity in racing
at the pari-mutuel betting tracks, equine drug testing at race meetings
shall be conducted by a [state college within this state with an
approved equine science program] SUITABLE LABORATORY OR LABORATORIES
LOCATED IN NEW YORK STATE, AS THE GAMING COMMISSION MAY DETERMINE IN ITS
DISCRETION. The [state racing and wagering board] GAMING COMMISSION
shall promulgate any rules and regulations necessary to implement the
provisions of this section, including administrative penalties of loss
of purse money, fines, or denial, suspension[,] or revocation of a
license for racing drugged horses.
2. Notwithstanding any inconsistent provision of law, all costs and
expenses of the [state racing and wagering board] GAMING COMMISSION for
equine drug testing and research shall be paid from [an appropriation
from the state treasury, on the certification of the chairman of the
state racing and wagering board, upon the audit and warrant of the comp-
troller and pursuant to a plan developed by the state racing and wager-
ing board as approved by the director of the budget] AN ASSESSMENT THE
COMMISSION MAY MAKE ON HORSEMEN ENTERING HORSES IN RACES, AN ASSESSMENT
THE COMMISSION MAY MAKE ON RACETRACKS, OR BOTH.
§ 2. Subdivision 2 of section 228 of the racing, pari-mutuel wagering
and breeding law, as amended by chapter 18 of the laws of 2008 and the
opening paragraph as amended by chapter 291 of the laws of 2016, is
amended to read as follows:
2. The New York state gaming commission shall, as a condition of
racing, require any franchised corporation and every other corporation
subject to its jurisdiction to withhold one percent of all purses,
except that for the franchised corporation, starting on September first,
two thousand seven and continuing through August thirty-first, two thou-
sand seventeen, two percent of all purses shall be withheld, and, in the
case of the franchised corporation, to pay such sum to the horsemen's
organization or its successor that was first entitled to receive
payments pursuant to this section in accordance with rules of the
commission adopted effective November third, nineteen hundred eighty-
three representing at least fifty-one percent of the owners and trainers
[utilizing] USING the facilities of such franchised corporation, on the
condition that such horsemen's organization shall expend [as much as is
necessary, but not to exceed] one-half of one percent of such total
sum[,] to acquire and maintain the equipment required to [establish a
program at a state college within this state with an approved equine
science program to] test, AT A SUITABLE LABORATORY LOCATED IN NEW YORK
STATE, AS THE GAMING COMMISSION MAY DETERMINE IN ITS DISCRETION, for the
presence of [steroids] IMPERMISSIBLE DRUGS OR OTHER SUBSTANCES THAT
MIGHT BE CLASSIFIED AS IMPERMISSIBLE SUBSTANCES in horses, provided
further that the qualified organization shall also, in an amount to be
determined by its board of directors, annually include in its expendi-
tures for benevolence programs, funds to support an organization provid-
ing services necessary to backstretch employees, and, in the case of
every other corporation, to pay such one percent sum of purses to the
horsemen's organization or its successor that was first entitled to
receive payments pursuant to this section in accordance with rules of
the commission adopted effective May twenty-third, nineteen hundred
eighty-six representing at least fifty-one percent of the owners and
trainers [utilizing] USING the facilities of such corporation.
S. 2009 105 A. 3009
In either case, any other horsemen's organization may apply to the
[board] COMMISSION to be approved as the qualified organization to
receive payment of the one percent of all purses by submitting to the
[board] COMMISSION proof of both, that (i) it represents more than
fifty-one percent of all the owners and trainers [utilizing] USING the
same facilities and (ii) the horsemen's organization previously approved
as qualified by the [board] COMMISSION does not represent fifty-one
percent of all the owners and trainers [utilizing] USING the same facil-
ities. If the [board] COMMISSION is satisfied that the documentation
submitted with the application of any other horsemen's organization is
conclusive with respect to items (i) and (ii) of this paragraph, it may
approve the applicant as the qualified recipient organization.
In the best interests of racing, upon receipt of such an application,
the [board] COMMISSION may direct the payments to the previously quali-
fied horsemen's organization to continue uninterrupted, or it may direct
the payments to be withheld and placed in interest-bearing accounts for
a period not to exceed ninety days, during which time the [board]
COMMISSION shall review and approve or disapprove the application. Funds
held in such manner shall be paid to the organization approved by the
[board] COMMISSION. In no event shall the [board] COMMISSION accept more
than one such application in any calendar year from the same horsemen's
organization.
The funds authorized to be paid by the [board] COMMISSION are to be
used exclusively for the benefit of those horsemen racing in New York
state through the administrative purposes of such qualified organiza-
tion, benevolent activities on behalf of backstretch employees, and for
the promotion of equine research.
§ 3. This act shall take effect immediately.
PART MM
Section 1. Article 19-B of the executive law is REPEALED.
§ 1-a. Article 9-A of the general municipal law is REPEALED.
§ 1-b. Article 14-H of the general municipal law is REPEALED.
§ 1-c. Article 34 of the tax law is REPEALED.
§ 2. The racing, pari-mutuel wagering and breeding law is amended by
adding a new article 15 to read as follows:
ARTICLE 15
CHARITABLE GAMING
TITLE 1. GENERAL PROVISIONS.
2. BINGO CONTROL.
3. LOCAL OPTION FOR CONDUCT OF BINGO BY CERTAIN ORGANIZATIONS.
4. LOCAL OPTION FOR CONDUCT OF GAMES OF CHANCE BY CERTAIN ORGAN-
IZATIONS.
TITLE 1
GENERAL PROVISIONS
SECTION 1500. DEFINITIONS.
1501. FORMS.
1502. PARTICIPATION BY PERSONS UNDER THE AGE OF EIGHTEEN.
1503. SUNDAYS.
1504. ADVERTISING OF CHARITABLE GAMES.
1505. SANCTIONS FOR VIOLATIONS.
1506. SEVERABILITY.
§ 1500. DEFINITIONS. AS USED IN THIS ARTICLE, IN ADDITION TO THE DEFI-
NITIONS SET FORTH IN SECTION ONE HUNDRED ONE OF THIS CHAPTER, THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
S. 2009 106 A. 3009
1. "AUTHORIZED BINGO LESSOR" SHALL MEAN A PERSON, FIRM OR CORPORATION
OTHER THAN A LICENSEE TO CONDUCT BINGO UNDER THE PROVISIONS OF THIS
ARTICLE, WHO OR WHICH OWNS OR IS A NET LESSEE OF PREMISES AND OFFER THE
SAME FOR LEASING BY HIM, HER OR IT TO AN AUTHORIZED ORGANIZATION FOR ANY
CONSIDERATION WHATSOEVER, DIRECT OR INDIRECT, FOR THE PURPOSE OF
CONDUCTING BINGO THEREIN, PROVIDED, THAT HE, SHE OR IT, AS THE CASE MAY
BE, SHALL NOT BE:
(A) A PERSON CONVICTED OF A CRIME IF THERE IS A DIRECT RELATIONSHIP
BETWEEN ONE OR MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE INTEGRITY
OF BINGO, CONSIDERING THE FACTORS SET FORTH IN SECTION SEVEN HUNDRED
FIFTY-THREE OF THE CORRECTION LAW;
(B) A PERSON WHO IS OR HAS BEEN A PROFESSIONAL GAMBLER OR GAMBLING
PROMOTER OR WHO FOR OTHER REASONS IS NOT OF GOOD MORAL CHARACTER;
(C) A PUBLIC OFFICER WHO RECEIVES ANY CONSIDERATION, DIRECT OR INDI-
RECT, AS OWNER OR LESSOR OF PREMISES OFFERED FOR THE PURPOSE OF CONDUCT-
ING BINGO THEREIN; OR
(D) A FIRM OR CORPORATION IN WHICH A PERSON DEFINED IN PARAGRAPH (A),
(B) OR (C) OF THIS SUBDIVISION OR A PERSON MARRIED OR RELATED IN THE
FIRST DEGREE TO SUCH A PERSON HAS GREATER THAN A TEN PERCENT PROPRIE-
TARY, EQUITABLE OR CREDIT INTEREST OR IN WHICH SUCH A PERSON IS ACTIVE
OR EMPLOYED.
NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED TO BAR ANY
FIRM OR CORPORATION THAT IS NOT ORGANIZED FOR PECUNIARY PROFIT AND NO
PART OF THE NET EARNINGS OF WHICH INURE TO THE BENEFIT OF ANY INDIVID-
UAL, MEMBER OR SHAREHOLDER, FROM BEING AN AUTHORIZED BINGO LESSOR SOLELY
BECAUSE A PUBLIC OFFICER, OR A PERSON MARRIED OR RELATED IN THE FIRST
DEGREE TO A PUBLIC OFFICER, IS A MEMBER OF, ACTIVE IN OR EMPLOYED BY
SUCH FIRM OR CORPORATION.
2. "AUTHORIZED GAMES OF CHANCE LESSOR" SHALL MEAN AN AUTHORIZED ORGAN-
IZATION THAT HAS BEEN GRANTED A LESSOR'S LICENSE PURSUANT TO THE
PROVISIONS OF TITLE FOUR OF THIS ARTICLE OR A MUNICIPALITY.
3. "AUTHORIZED ORGANIZATION" SHALL MEAN ANY BONA FIDE RELIGIOUS OR
CHARITABLE ORGANIZATION OR BONA FIDE EDUCATIONAL, FRATERNAL, CIVIC OR
SERVICE ORGANIZATION OR BONA FIDE ORGANIZATION OF VETERANS, VOLUNTEER
FIREFIGHTERS OR VOLUNTEER AMBULANCE WORKERS THAT BY ITS CHARTER, CERTIF-
ICATE OF INCORPORATION, CONSTITUTION OR ACT OF THE LEGISLATURE HAS AMONG
ITS DOMINANT PURPOSES ONE OR MORE OF THE LAWFUL PURPOSES AS DEFINED IN
THIS SECTION, PROVIDED THAT EACH SHALL OPERATE WITHOUT PROFIT TO ITS
MEMBERS AND PROVIDED THAT EACH SUCH ORGANIZATION HAS ENGAGED IN SERVING
ONE OR MORE OF THE LAWFUL PURPOSES AS DEFINED IN THIS SECTION FOR A
PERIOD OF ONE YEAR IMMEDIATELY PRIOR TO APPLYING FOR A LICENSE UNDER
THIS ARTICLE. NO ORGANIZATION SHALL BE DEEMED AN AUTHORIZED ORGANIZATION
THAT IS FORMED PRIMARILY FOR THE PURPOSE OF CONDUCTING BINGO OR GAMES OF
CHANCE AND THAT DOES NOT DEVOTE AT LEAST SEVENTY-FIVE PERCENT OF ITS
ACTIVITIES TO OTHER THAN CONDUCTING BINGO OR GAMES OF CHANCE. NO POLI-
TICAL PARTY, POLITICAL CAMPAIGN OR POLITICAL CAMPAIGN COMMITTEE SHALL BE
DEEMED AN AUTHORIZED ORGANIZATION.
4. "AUTHORIZED SUPPLIER OF GAMES OF CHANCE EQUIPMENT" SHALL MEAN ANY
PERSON, FIRM, PARTNERSHIP, CORPORATION OR ORGANIZATION LICENSED BY THE
COMMISSION TO SELL OR LEASE GAMES OF CHANCE EQUIPMENT OR PARAPHERNALIA
THAT MEETS THE SPECIFICATIONS AND REGULATIONS ESTABLISHED BY THE COMMIS-
SION. NOTHING HEREIN SHALL PREVENT AN AUTHORIZED ORGANIZATION FROM
PURCHASING COMMON ARTICLES, SUCH AS CARDS AND DICE, FROM NORMAL SOURCES
OF SUPPLY OF SUCH ARTICLES OR FROM CONSTRUCTING EQUIPMENT AND PARAPHER-
NALIA FOR GAMES OF CHANCE FOR ITS OWN USE. HOWEVER, NO SUCH EQUIPMENT
OR PARAPHERNALIA, CONSTRUCTED OR OWNED BY AN AUTHORIZED ORGANIZATION
S. 2009 107 A. 3009
SHALL BE SOLD OR LEASED TO ANY OTHER AUTHORIZED ORGANIZATION, WITHOUT
WRITTEN PERMISSION FROM THE COMMISSION.
5. "BELL JARS" SHALL MEAN AND INCLUDE THOSE GAMES IN WHICH A PARTIC-
IPANT SHALL DRAW A CARD THAT CONTAINS NUMBERS, COLORS OR SYMBOLS THAT
ARE COVERED AND THAT, WHEN UNCOVERED, MAY REVEAL THAT A PRIZE SHALL BE
AWARDED ON THE BASIS OF A DESIGNATED WINNING NUMBER, COLOR OR SYMBOL OR
COMBINATION OF NUMBERS, COLORS OR SYMBOLS. SUCH CARD SHALL BE DRAWN FROM
A JAR, VENDING MACHINE OR OTHER SUITABLE DEVICE OR CONTAINER. BELL JARS
SHALL ALSO INCLUDE SEAL CARDS, COIN BOARDS, EVENT GAMES AND MERCHANDISE
BOARDS.
6. "BINGO" SHALL MEAN A SPECIFIC GAME OF CHANCE, COMMONLY KNOWN AS
BINGO OR LOTTO, IN WHICH PRIZES ARE AWARDED ON THE BASIS OF DESIGNATED
NUMBERS OR SYMBOLS ON A CARD CONFORMING TO NUMBERS OR SYMBOLS SELECTED
AT RANDOM.
7. "BINGO CONTROL LAW" SHALL MEAN TITLE TWO OF THIS ARTICLE.
8. "BINGO LICENSING LAW" SHALL MEAN TITLE THREE OF THIS ARTICLE.
9. "BONUS BALL" SHALL MEAN A BINGO GAME THAT IS PLAYED IN CONJUNCTION
WITH ONE OR MORE REGULAR OR SPECIAL BINGO GAMES DESIGNATED AS BONUS BALL
GAMES BY THE LICENSED AUTHORIZED ORGANIZATION DURING ONE OR MORE CONSEC-
UTIVE BINGO OCCASIONS IN WHICH A PRIZE IS AWARDED TO THE PLAYER OBTAIN-
ING A SPECIFIED WINNING BINGO PATTERN WHEN THE LAST NUMBER CALLED BY THE
LICENSED AUTHORIZED ORGANIZATION IS THE DESIGNATED BONUS BALL NUMBER.
THE BONUS BALL PRIZE SHALL BE BASED UPON A PERCENTAGE OF THE SALES FROM
OPPORTUNITIES TO PARTICIPATE IN BONUS BALL GAMES NOT TO EXCEED SEVENTY-
FIVE PERCENT OF THE SUM OF MONEY RECEIVED FROM THE SALE OF BONUS BALL
OPPORTUNITIES OR TEN THOUSAND DOLLARS, WHICHEVER SHALL BE LESS, AND
WHICH IS NOT SUBJECT TO THE PRIZE LIMITS IMPOSED BY SUBDIVISIONS FIVE
AND SIX OF SECTION FIFTEEN HUNDRED TWENTY-THREE AND PARAGRAPH (A) OF
SUBDIVISION ONE OF SECTION FIFTEEN HUNDRED TWENTY-FIVE OF THIS ARTICLE.
THE PERCENTAGE SHALL BE SPECIFIED BOTH IN THE APPLICATION FOR THE BINGO
LICENSE AND THE LICENSEE. NOTWITHSTANDING SECTION FIFTEEN HUNDRED THIR-
TY-ONE OF THIS ARTICLE, NOT MORE THAN ONE DOLLAR SHALL BE CHARGED PER
PLAYER FOR AN OPPORTUNITY TO PARTICIPATE IN ALL BONUS BALL GAMES
CONDUCTED DURING A SINGLE BINGO OCCASION, AND THE TOTAL AMOUNT COLLECTED
FROM THE SALE OF BONUS BALL OPPORTUNITIES AND THE AMOUNT OF THE PRIZE TO
BE AWARDED SHALL BE ANNOUNCED PRIOR TO THE START OF EACH BINGO OCCASION.
10. "COIN BOARD" AND "MERCHANDISE BOARD" SHALL MEAN A BOARD USED IN
CONJUNCTION WITH BELL JAR TICKETS THAT CONTAINS AND DISPLAYS VARIOUS
COINS AND/OR MERCHANDISE AS PRIZES. A PLAYER HAVING A BELL JAR TICKET
WITH A NUMBER MATCHING A PRE-DESIGNATED NUMBER REFLECTED ON THE BOARD
FOR A PRIZE WINS THAT PRIZE.
11. "CLERK" SHALL MEAN THE CLERK OF A MUNICIPALITY OUTSIDE THE CITY OF
NEW YORK.
12. "DEPARTMENT" SHALL MEAN THE NEW YORK CITY DEPARTMENT OF CONSUMER
AFFAIRS.
13. "EARLY BIRD" SHALL MEAN A BINGO GAME THAT IS PLAYED AS A SPECIAL
GAME, CONDUCTED NOT MORE THAN TWICE DURING A BINGO OCCASION, IN WHICH
PRIZES ARE AWARDED BASED UPON A PERCENTAGE NOT TO EXCEED SEVENTY-FIVE
PERCENT OF THE SUM OF MONEY RECEIVED FROM THE SALE OF THE EARLY BIRD
CARDS AND THAT IS NEITHER SUBJECT TO THE PRIZE LIMITS IMPOSED BY SUBDI-
VISIONS FIVE AND SIX OF SECTION FIFTEEN HUNDRED TWENTY-THREE AND PARA-
GRAPH (A) OF SUBDIVISION ONE OF SECTION FIFTEEN HUNDRED TWENTY-FIVE, NOR
THE SPECIAL GAME OPPORTUNITY CHARGE LIMIT IMPOSED BY SECTION FIFTEEN
HUNDRED THIRTY-ONE OF THIS ARTICLE. THE PERCENTAGE SHALL BE SPECIFIED
BOTH IN THE APPLICATION FOR BINGO LICENSE AND THE LICENSE. NOT MORE
THAN ONE DOLLAR SHALL BE CHARGED PER CARD WITH THE TOTAL AMOUNT
S. 2009 108 A. 3009
COLLECTED FROM THE SALE OF THE EARLY BIRD CARDS AND THE PRIZE FOR EACH
GAME TO BE ANNOUNCED BEFORE THE COMMENCEMENT OF EACH GAME.
14. "EVENT GAME" SHALL MEAN A BELL JAR GAME IN WHICH CERTAIN WINNERS
ARE DETERMINED BY THE RANDOM SELECTION OF ONE OR MORE BINGO NUMBERS, THE
USE OF A SEAL CARD OR BY ANOTHER METHOD APPROVED BY THE COMMISSION.
15. "FLARE" SHALL MEAN A POSTER DESCRIPTION OF THE BELL JAR GAME,
WHICH SHALL INCLUDE:
(A) A DECLARATION OF THE NUMBER OF WINNERS AND AMOUNT OF PRIZES IN
EACH DEAL;
(B) THE NUMBER OF PRIZES AVAILABLE IN THE DEAL;
(C) THE NUMBER OF TICKETS IN EACH DEAL THAT CONTAIN THE STATED PRIZE;
(D) THE MANUFACTURER'S GAME FORM NUMBER AND THE SERIAL NUMBER OF THE
DEAL, WHICH SHALL BE IDENTICAL TO THE SERIAL NUMBER IMPRINTED ON EACH
TICKET CONTAINED IN THE DEAL; AND
(E) SUCH OTHER REQUIREMENTS AS THE RULES AND REGULATIONS OF THE
COMMISSION MAY REQUIRE.
16. "GAMES OF CHANCE" SHALL MEAN AND INCLUDE ONLY THE GAMES KNOWN AS
"MERCHANDISE WHEELS," "COIN BOARDS," "MERCHANDISE BOARDS," "SEAL CARDS,"
"EVENT GAMES," "RAFFLES," "BELL JARS" AND SUCH OTHER SPECIFIC GAMES AS
MAY BE AUTHORIZED BY THE COMMISSION, IN WHICH PRIZES ARE AWARDED ON THE
BASIS OF A DESIGNATED WINNING NUMBER OR NUMBERS, COLOR OR COLORS, SYMBOL
OR SYMBOLS DETERMINED BY CHANCE, BUT NOT INCLUDING GAMES COMMONLY KNOWN
AS "BINGO" OR "LOTTO," WHICH ARE CONTROLLED UNDER TITLES TWO AND THREE
OF THIS ARTICLE, AND ALSO NOT INCLUDING "BOOKMAKING," "POLICY OR NUMBERS
GAMES" AND "LOTTERY" AS DEFINED IN SECTION 225.00 OF THE PENAL LAW.
17. "LAWFUL PURPOSES" SHALL MEAN ONE OR MORE OF THE FOLLOWING CAUSES,
DEEDS OR ACTIVITIES:
(A) THOSE THAT BENEFIT NEEDY OR DESERVING PERSONS INDEFINITE IN NUMBER
BY ENHANCING THEIR OPPORTUNITY FOR RELIGIOUS OR EDUCATIONAL ADVANCEMENT,
BY RELIEVING THEM FROM DISEASE, SUFFERING OR DISTRESS, OR BY CONTRIBUT-
ING TO THEIR PHYSICAL WELL-BEING, BY ASSISTING THEM IN ESTABLISHING
THEMSELVES IN LIFE AS WORTHY AND USEFUL CITIZENS, OR BY INCREASING THEIR
COMPREHENSION OF AND DEVOTION TO THE PRINCIPLES UPON WHICH THIS NATION
WAS FOUNDED AND ENHANCING THEIR LOYALTY TO THEIR GOVERNMENTS;
(B) THOSE THAT INITIATE, PERFORM OR FOSTER WORTHY PUBLIC WORKS OR
ENABLE OR FURTHER THE ERECTION OR MAINTENANCE OF PUBLIC STRUCTURES;
(C) THOSE THAT INITIATE, PERFORM OR FOSTER THE PROVISIONS OF SERVICES
TO VETERANS BY ENCOURAGING THE GATHERING OF SUCH VETERANS AND ENABLE OR
FURTHER THE ERECTION OR MAINTENANCE OF FACILITIES FOR USE BY SUCH VETER-
ANS THAT SHALL BE USED PRIMARILY FOR CHARITABLE OR PATRIOTIC PURPOSES,
OR THOSE PURPOSES THAT SHALL BE AUTHORIZED BY A BONA FIDE ORGANIZATION
OF VETERANS, PROVIDED HOWEVER THAT SUCH PROCEEDS ARE DISBURSED IN
ACCORDANCE WITH THE RULES AND REGULATIONS OF THE COMMISSION AND SECTION
FIFTEEN HUNDRED FIFTY-FOUR OF THIS ARTICLE; AND
(D) THOSE THAT OTHERWISE LESSEN THE BURDENS BORNE BY THE GOVERNMENT OR
THAT ARE VOLUNTARILY UNDERTAKEN BY AN AUTHORIZED ORGANIZATION TO AUGMENT
OR SUPPLEMENT SERVICES THAT THE GOVERNMENT WOULD NORMALLY RENDER TO THE
PEOPLE, INCLUDING, IN THE CASE OF VOLUNTEER FIREFIGHTERS' ACTIVITIES,
THE PURCHASE, ERECTION OR MAINTENANCE OF A BUILDING FOR A FIREHOUSE,
ACTIVITIES OPEN TO THE PUBLIC FOR THE ENHANCEMENT OF MEMBERSHIP AND THE
PURCHASE OF EQUIPMENT THAT CAN REASONABLY BE EXPECTED TO INCREASE THE
EFFICIENCY OF RESPONSE TO FIRES, ACCIDENTS, PUBLIC CALAMITIES AND OTHER
EMERGENCIES.
18. "LICENSE PERIOD" SHALL MEAN:
(A) FOR BINGO, THE DURATION OF A LICENSE ISSUED PURSUANT TO SECTION
FIFTEEN HUNDRED TWENTY-FIVE OF THIS ARTICLE;
S. 2009 109 A. 3009
(B) FOR GAMES OF CHANCE OTHER THAN BELL JARS OR RAFFLES, A PERIOD OF
TIME NOT TO EXCEED FOURTEEN CONSECUTIVE HOURS; AND
(C) FOR BELL JARS AND RAFFLES, A PERIOD OF TIME RUNNING FROM JANUARY
FIRST TO DECEMBER THIRTY-FIRST OF THE YEAR SET FORTH IN THE LICENSE.
19. "LIMITED-PERIOD BINGO" SHALL MEAN THE CONDUCT OF BINGO BY A
LICENSED AUTHORIZED ORGANIZATION, FOR A PERIOD OF NOT MORE THAN SEVEN OF
TWELVE CONSECUTIVE DAYS IN ANY ONE YEAR, AT A FESTIVAL, BAZAAR, CARNIVAL
OR SIMILAR FUNCTION CONDUCTED BY SUCH LICENSED AUTHORIZED ORGANIZATION.
NO AUTHORIZED ORGANIZATION LICENSED TO CONDUCT LIMITED-PERIOD BINGO
SHALL BE OTHERWISE ELIGIBLE TO CONDUCT BINGO PURSUANT TO THIS TITLE IN
THE SAME YEAR.
20. "MUNICIPAL OFFICER" SHALL MEAN THE CHIEF LAW ENFORCEMENT OFFICER
OF A MUNICIPALITY OUTSIDE THE CITY OF NEW YORK, OR IF SUCH MUNICIPALITY
EXERCISES THE OPTION SET FORTH IN SUBDIVISION TWO OF SECTION FIFTEEN
HUNDRED SIXTY-THREE OF THIS ARTICLE, THE CHIEF LAW ENFORCEMENT OFFICER
OF THE COUNTY.
21. "MUNICIPALITY" SHALL MEAN ANY CITY, TOWN OR VILLAGE WITHIN THIS
STATE.
22. "NET LEASE" SHALL MEAN A WRITTEN AGREEMENT BETWEEN A LESSOR AND
LESSEE UNDER THE TERMS OF WHICH THE LESSEE IS ENTITLED TO THE
POSSESSION, USE OR OCCUPANCY OF THE WHOLE OR PART OF ANY COMMERCIAL
PREMISES FOR WHICH THE LESSEE PAYS RENT TO THE LESSOR AND LIKEWISE
UNDERTAKES TO PAY SUBSTANTIALLY ALL OF THE REGULARLY RECURRING EXPENSES
INCIDENT TO THE OPERATION AND MAINTENANCE OF SUCH LEASED PREMISES.
23. "NET PROCEEDS" SHALL MEAN:
(A) IN RELATION TO THE GROSS RECEIPTS FROM ONE OR MORE OCCASIONS OF
BINGO, THE AMOUNT THAT REMAINS AFTER DEDUCTING THE REASONABLE SUMS
NECESSARILY AND ACTUALLY EXPENDED FOR BINGO SUPPLIES AND EQUIPMENT,
PRIZES, STATED RENTAL, IF ANY, BOOKKEEPING OR ACCOUNTING SERVICES
ACCORDING TO A SCHEDULE OF COMPENSATION PRESCRIBED BY THE COMMISSION,
JANITORIAL SERVICES AND UTILITY SUPPLIES IF ANY, LICENSE FEES, AND THE
COST OF BUS TRANSPORTATION, IF AUTHORIZED BY THE COMMISSION;
(B) IN RELATION TO BELL JARS, THE DIFFERENCE BETWEEN THE IDEAL HANDLE
FROM THE SALE OF BELL JAR TICKETS, SEAL CARDS, MERCHANDISE BOARDS AND
COIN BOARDS LESS THE AMOUNT OF MONEY PAID OUT IN PRIZES AND LESS THE
PURCHASE PRICE OF THE BELL JAR DEAL, SEAL CARD DEAL, MERCHANDISE BOARD
DEAL OR COIN BOARD DEAL. ADDITIONALLY, A CREDIT SHALL BE PERMITTED
AGAINST THE NET PROCEEDS FEE TENDERED TO THE COMMISSION FOR UNSOLD TICK-
ETS OF THE BELL JAR DEAL SO LONG AS THE UNSOLD TICKETS HAVE THE SAME
SERIAL AND FORM NUMBER AS THE TICKETS FOR WHICH THE FEE IS RENDERED;
(C) IN RELATION TO THE GROSS RECEIPTS FROM ONE OR MORE LICENSE PERIODS
OF GAMES OF CHANCE, THE AMOUNT THAT SHALL REMAIN AFTER DEDUCTING THE
REASONABLE SUMS NECESSARILY AND ACTUALLY EXPENDED FOR SUPPLIES AND
EQUIPMENT, PRIZES, SECURITY-PERSONNEL, STATED RENTAL IF ANY, BOOKKEEPING
OR ACCOUNTING SERVICES ACCORDING TO A SCHEDULE OF COMPENSATION
PRESCRIBED BY THE COMMISSION, JANITORIAL SERVICES AND UTILITY SUPPLIES,
IF ANY, LICENSE FEES, AND THE COST OF BUS TRANSPORTATION, IF AUTHORIZED
BY THE CLERK OR DEPARTMENT;
(D) IN RELATION TO THE GROSS RENT RECEIVED BY AN ORGANIZATION LICENSED
TO CONDUCT BINGO FOR THE USE OF ITS PREMISES BY ANOTHER LICENSEE, THE
AMOUNT THAT REMAINS AFTER DEDUCTING THE REASONABLE SUMS NECESSARILY AND
ACTUALLY EXPENDED FOR JANITORIAL SERVICES AND UTILITY SUPPLIES DIRECTLY
ATTRIBUTABLE THERETO IF ANY; AND
(E) IN RELATION TO THE GROSS RENT RECEIVED BY AN AUTHORIZED GAMES OF
CHANCE LESSOR FOR THE USE OF ITS PREMISES BY A GAME OF CHANCE LICENSEE,
THE AMOUNT THAT SHALL REMAIN AFTER DEDUCTING THE REASONABLE SUMS NECES-
S. 2009 110 A. 3009
SARILY AND ACTUALLY EXPENDED FOR JANITORIAL SERVICES AND UTILITY
SUPPLIES DIRECTLY ATTRIBUTABLE THERETO IF ANY.
24. (A) "ONE OCCASION" SHALL MEAN THE SUCCESSIVE OPERATIONS OF ANY ONE
SINGLE TYPE OF GAME OF CHANCE THAT RESULTS IN THE AWARDING OF A SERIES
OF PRIZES AMOUNTING TO FIVE HUNDRED DOLLARS OR FOUR HUNDRED DOLLARS
DURING ANY ONE LICENSE PERIOD, IN ACCORDANCE WITH THE PROVISIONS OF
SUBDIVISION EIGHT OF SECTION FIFTEEN HUNDRED FIFTY-FOUR OF THIS ARTICLE,
AS THE CASE MAY BE.
(B) FOR PURPOSES OF THE GAME OF CHANCE KNOWN AS A MERCHANDISE WHEEL OR
A RAFFLE, "ONE OCCASION" SHALL MEAN THE SUCCESSIVE OPERATIONS OF ANY ONE
SUCH MERCHANDISE WHEEL OR RAFFLE FOR WHICH THE LIMIT ON A SERIES OF
PRIZES PROVIDED BY SUBDIVISION SIX OF SECTION FIFTEEN HUNDRED FIFTY-FOUR
OF THIS ARTICLE SHALL APPLY.
(C) FOR PURPOSES OF THE GAME OF CHANCE KNOWN AS A BELL JAR, "ONE OCCA-
SION" SHALL MEAN THE SUCCESSIVE OPERATION OF ANY ONE SUCH BELL JAR, SEAL
CARD, EVENT GAME, COIN BOARD, OR MERCHANDISE BOARD THAT RESULTS IN THE
AWARDING OF A SERIES OF PRIZES AMOUNTING TO SIX THOUSAND DOLLARS.
(D) FOR THE PURPOSES OF THE GAME OF CHANCE KNOWN AS RAFFLE "ONE OCCA-
SION" SHALL MEAN A CALENDAR YEAR DURING WHICH SUCCESSIVE OPERATIONS OF
SUCH GAME ARE CONDUCTED.
25. "OPERATION" SHALL MEAN, IN REGARD TO A GAME OF CHANCE, THE PLAY OF
A SINGLE TYPE OF GAME OF CHANCE NECESSARY TO DETERMINE THE OUTCOME OR
WINNERS EACH TIME WAGERS ARE MADE. A SINGLE DRAWING OF A WINNING TICKET
OR OTHER RECEIPT IN A RAFFLE SHALL BE DEEMED ONE OPERATION.
26. "PREMISES" SHALL MEAN, IN REGARD TO GAMES OF CHANCE, A DESIGNATED
AREA WITHIN A BUILDING, HALL, TENT OR GROUNDS REASONABLY IDENTIFIED FOR
THE CONDUCT OF GAMES OF CHANCE. NOTHING HEREIN SHALL REQUIRE SUCH AREA
TO BE ENCLOSED.
27. "PRIZE," WHERE SUPERCARD IS PLAYED AS SET FORTH IN SUBDIVISION
THIRTY-THREE OF THIS SECTION, SHALL MEAN THE SUM OF MONEY OR ACTUAL
VALUE OF MERCHANDISE AWARDED TO THE WINNER OR WINNERS ON A GAME CARD
DURING A GAME OF BINGO AND THE SUM OF MONEY OR ACTUAL VALUE OF MERCHAN-
DISE AWARDED TO THE WINNER OR WINNERS ON A SUPERCARD IN EXCESS OF THE
TOTAL RECEIPTS DERIVED FROM THE SALE OF SUPERCARDS FOR THAT SPECIFIC
GAME.
28. "RAFFLE" SHALL MEAN AND INCLUDE THOSE GAMES OF CHANCE IN WHICH A
PARTICIPANT PAYS MONEY IN RETURN FOR A TICKET OR OTHER RECEIPT AND IN
WHICH A PRIZE IS AWARDED ON THE BASIS OF A WINNING NUMBER OR NUMBERS,
COLOR OR COLORS, OR SYMBOL OR SYMBOLS DESIGNATED ON THE TICKET OR
RECEIPT, DETERMINED BY CHANCE AS A RESULT OF:
(A) A DRAWING FROM AMONG THOSE TICKETS OR RECEIPTS PREVIOUSLY SOLD; OR
(B) A RANDOM EVENT, THE RESULTS OF WHICH CORRESPOND WITH TICKETS OR
RECEIPTS PREVIOUSLY SOLD.
29. "SEAL CARDS" SHALL MEAN A BOARD OR PLACARD USED IN CONJUNCTION
WITH A DEAL OF THE SAME SERIAL NUMBER THAT CONTAINS ONE OR MORE
CONCEALED AREAS THAT, WHEN REMOVED OR OPENED, REVEAL A PREDESIGNATED
WINNING NUMBER, LETTER OR SYMBOL LOCATED ON THE BOARD OR PLACARD. A SEAL
CARD USED IN CONJUNCTION WITH AN EVENT GAME SHALL NOT BE REQUIRED TO
CONTAIN LINES FOR PROSPECTIVE SEAL WINNERS TO SIGN THEIR NAME.
30. "SERIES OF PRIZES" SHALL MEAN THE TOTAL AMOUNT OF SINGLE PRIZES
MINUS THE TOTAL AMOUNT OF WAGERS LOST DURING THE SUCCESSIVE OPERATIONS
OF A SINGLE TYPE OF GAME OF CHANCE, EXCEPT THAT FOR MERCHANDISE WHEELS
AND RAFFLES, "SERIES OF PRIZES" SHALL MEAN THE SUM OF CASH AND THE FAIR
MARKET VALUE OF MERCHANDISE AWARDED AS SINGLE PRIZES DURING THE SUCCES-
SIVE OPERATIONS OF ANY SINGLE MERCHANDISE WHEEL OR RAFFLE. IN THE GAME
S. 2009 111 A. 3009
OF RAFFLE, A SERIES OF PRIZES MAY INCLUDE A PERCENTAGE OF THE SUM OF
CASH RECEIVED FROM THE SALE OF RAFFLE TICKETS.
31. "SINGLE PRIZE" SHALL MEAN THE SUM OF MONEY OR FAIR MARKET VALUE OF
MERCHANDISE OR COINS AWARDED TO A PARTICIPANT BY A GAMES OF CHANCE
LICENSEE IN ANY ONE OPERATION OF A SINGLE TYPE OF GAME OF CHANCE IN
EXCESS OF HIS OR HER WAGER.
32. "SINGLE TYPE OF GAME" SHALL MEAN THE GAMES OF CHANCE KNOWN AS
MERCHANDISE WHEELS, COIN BOARDS, MERCHANDISE BOARDS, EVENT GAMES,
RAFFLES AND BELL JARS AND EACH OTHER SPECIFIC GAME OF CHANCE AUTHORIZED
BY THE COMMISSION.
33. "SUPERCARD" SHALL MEAN A BINGO CARD ON WHICH PRIZES ARE AWARDED,
WHICH CARD IS SELECTED BY THE PLAYER, CONTAINING FIVE DESIGNATED
NUMBERS, COLORS OR SYMBOLS, CORRESPONDING TO THE LETTERS B, I, N, G, O,
DISPLAYED ON THE BINGO BOARD OF THE BINGO PREMISES OPERATOR, WHICH CAN
BE PLAYED CONCURRENTLY WITH THE OTHER BINGO CARDS PLAYED DURING THE GAME
OF BINGO.
§ 1501. FORMS. THE COMMISSION SHALL, TO THE GREATEST EXTENT PRACTICA-
BLE, MAKE FORMS AND APPLICATIONS REQUIRED BY THIS ARTICLE OR RELATED
RULES AND REGULATIONS OF THE COMMISSION AVAILABLE IN ELECTRONIC FORMATS
THAT MINIMIZE PAPERWORK AND ARE DESIGNED TO MAXIMIZE EFFICIENCY FOR
AUTHORIZED ORGANIZATIONS, MUNICIPALITIES AND THE COMMISSION.
§ 1502. PARTICIPATION BY PERSONS UNDER THE AGE OF EIGHTEEN. 1. NO
PERSON UNDER THE AGE OF EIGHTEEN YEARS SHALL BE PERMITTED TO PLAY ANY
GAME OF BINGO OR ANY GAME OF CHANCE CONDUCTED PURSUANT TO THIS ARTICLE.
2. NO PERSON UNDER THE AGE OF EIGHTEEN YEARS SHALL BE PERMITTED TO
CONDUCT, OPERATE OR ASSIST IN THE CONDUCT OF ANY GAME OF BINGO OR GAME
OF CHANCE CONDUCTED PURSUANT TO THIS ARTICLE.
3. PERSONS UNDER THE AGE OF EIGHTEEN YEARS MAY BE PERMITTED TO ATTEND
GAMES OF CHANCE AT THE DISCRETION OF THE GAMES OF CHANCE LICENSEE.
§ 1503. SUNDAYS. A MUNICIPALITY MAY RESTRICT A LICENSE TO CONDUCT
BINGO OR GAMES OF CHANCE BY PROVIDING THAT NO BINGO OR GAMES OF CHANCE
SHALL BE CONDUCTED ON THE FIRST DAY OF THE WEEK, COMMONLY KNOWN AS
SUNDAY, IF THE PROVISIONS OF A LOCAL LAW OR AN ORDINANCE DULY ADOPTED BY
THE GOVERNING BODY OF THE MUNICIPALITY ISSUING THE LICENSE PROHIBITS THE
CONDUCT OF BINGO OR GAMES OF CHANCE PURSUANT TO THIS TITLE ON SUCH DAYS.
§ 1504. ADVERTISING OF CHARITABLE GAMES. A LICENSEE MAY ADVERTISE THE
CONDUCT OF AN OCCASION OF BINGO OR GAMES OF CHANCE EVENT TO THE GENERAL
PUBLIC BY MEANS OF NEWSPAPER, RADIO, CIRCULAR, HANDBILL AND POSTER, BY
ONE SIGN NOT EXCEEDING SIXTY SQUARE FEET IN AREA, WHICH MAY BE DISPLAYED
ON OR ADJACENT TO THE PREMISES OWNED OR OCCUPIED BY A LICENSED AUTHOR-
IZED ORGANIZATION, BY OTHER SIGNS AS MAY BE PERMITTED BY THE RULES AND
REGULATIONS OF THE COMMISSION AND THROUGH THE INTERNET AS MAY BE PERMIT-
TED BY THE RULES AND REGULATIONS OF THE COMMISSION. WHEN AN ORGANIZATION
IS LICENSED OR AUTHORIZED TO CONDUCT BINGO OCCASIONS OR GAMES OF CHANCE
EVENTS ON THE PREMISES OF ANOTHER LICENSED AUTHORIZED ORGANIZATION OR OF
AN AUTHORIZED BINGO LESSOR OR AUTHORIZED GAMES OF CHANCE LESSOR, ONE
ADDITIONAL SUCH SIGN MAY BE DISPLAYED ON OR ADJACENT TO THE PREMISES IN
WHICH THE OCCASIONS ARE TO BE CONDUCTED. ADDITIONAL SIGNS MAY BE
DISPLAYED UPON ANY FIREFIGHTING EQUIPMENT BELONGING TO ANY LICENSED
AUTHORIZED ORGANIZATION THAT IS A VOLUNTEER FIRE COMPANY, OR UPON ANY
EQUIPMENT OF A FIRST AID OR RESCUE SQUAD IN AND THROUGHOUT THE COMMUNITY
SERVED BY SUCH VOLUNTEER FIRE COMPANY OR SUCH FIRST AID OR RESCUE SQUAD,
AS THE CASE MAY BE. ALL ADVERTISEMENTS SHALL BE LIMITED TO:
(A) THE DESCRIPTION OF SUCH EVENT AS "BINGO," "GAMES OF CHANCE" OR
"CASINO NIGHT," AS THE CASE MAY BE;
S. 2009 112 A. 3009
(B) THE NAME OF THE AUTHORIZED ORGANIZATION CONDUCTING SUCH BINGO
OCCASIONS OR GAMES OF CHANCE;
(C) THE LICENSE NUMBER OF THE AUTHORIZED ORGANIZATION AS ASSIGNED BY
THE CLERK OR DEPARTMENT;
(D) THE PRIZES OFFERED; AND
(E) THE DATE, LOCATION AND TIME OF THE BINGO OCCASION OR GAMES OF
CHANCE EVENT.
§ 1505. SANCTIONS FOR VIOLATIONS. THE COMMISSION SHALL HAVE THE POWER
TO ISSUE LETTERS OF REPRIMAND OR IMPOSE FINES IN ANY AMOUNT UP TO THE
MAXIMUM AUTHORIZED BY SECTION ONE HUNDRED SIXTEEN OF THIS CHAPTER FOR
ANY VIOLATION OF THIS ARTICLE OR THE RULES AND REGULATIONS OF THE
COMMISSION. A PERSON OR ENTITY THAT HAS BEEN FINED MAY REQUEST A DE NOVO
HEARING BEFORE THE COMMISSION TO REVIEW AND DETERMINE SUCH FINE, PURSU-
ANT TO THE RULES AND REGULATIONS OF THE COMMISSION.
§ 1506. SEVERABILITY. IF ANY PROVISION OF THIS ARTICLE OR THE APPLICA-
TION THEREOF TO ANY MUNICIPALITY, PERSON OR CIRCUMSTANCES SHALL BE
ADJUDGED UNCONSTITUTIONAL BY ANY COURT OF COMPETENT JURISDICTION, THE
REMAINDER OF THIS ARTICLE OR THE APPLICATION THEREOF TO OTHER MUNICI-
PALITIES, PERSONS AND CIRCUMSTANCES SHALL NOT BE AFFECTED THEREBY, AND
THE LEGISLATURE HEREBY DECLARES THAT IT WOULD HAVE ENACTED THIS TITLE
WITHOUT THE INVALID PROVISION OR APPLICATION, AS THE CASE MAY BE, HAD
SUCH INVALIDITY BEEN APPARENT.
TITLE 2
BINGO CONTROL
SECTION 1510. SHORT TITLE.
1511. PURPOSE OF TITLE.
1512. OTHER AGENCY ASSISTANCE.
1513. POWERS AND DUTIES OF THE COMMISSION.
1514. HEARINGS; IMMUNITY.
1515. PLACE OF INVESTIGATIONS AND HEARINGS; WITNESSES; BOOKS AND
DOCUMENTS.
1516. PRIVILEGE AGAINST SELF-INCRIMINATION.
1517. FILING AND AVAILABILITY OF RULES AND REGULATIONS.
1518. MUNICIPALITY TO FILE COPIES OF LOCAL LAWS AND ORDINANCES;
REPORTS.
§ 1510. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
BINGO CONTROL LAW.
§ 1511. PURPOSE OF TITLE. THE PURPOSE OF THIS TITLE IS TO IMPLEMENT
SECTION NINE OF ARTICLE ONE OF THE STATE CONSTITUTION, AS AMENDED BY
VOTE OF THE PEOPLE AT THE GENERAL ELECTION IN NOVEMBER, NINETEEN HUNDRED
FIFTY-SEVEN. THE LEGISLATURE HEREBY DECLARES THAT THE RAISING OF FUNDS
FOR THE PROMOTION OF BONA FIDE CHARITABLE, EDUCATIONAL, SCIENTIFIC,
HEALTH, RELIGIOUS, CIVIC AND PATRIOTIC CAUSES AND UNDERTAKINGS, WHERE
THE BENEFICIARIES ARE INDEFINITE, IS IN THE PUBLIC INTEREST. IT HEREBY
FINDS THAT, AS CONDUCTED PRIOR TO THE ENACTMENT OF THIS TITLE, BINGO WAS
THE SUBJECT OF EXPLOITATION BY PROFESSIONAL GAMBLERS, PROMOTERS AND
COMMERCIAL INTERESTS. IT IS HEREBY DECLARED TO BE THE POLICY OF THE
LEGISLATURE THAT ALL PHASES OF THE SUPERVISION, LICENSING AND THE REGU-
LATION OF BINGO AND OF THE CONDUCT OF BINGO GAMES, SHOULD BE CONTROLLED
CLOSELY AND THAT THE LAWS AND REGULATIONS PERTAINING THERETO SHOULD BE
CONSTRUED STRICTLY AND ENFORCED RIGIDLY; THAT THE CONDUCT OF BINGO AND
ALL ATTENDANT ACTIVITIES SHOULD BE SO REGULATED AND ADEQUATE CONTROLS SO
INSTITUTED AS TO DISCOURAGE COMMERCIALIZATION IN ALL ITS FORMS, INCLUD-
ING THE RENTAL OF COMMERCIAL PREMISES FOR BINGO GAMES, AND TO ENSURE A
MAXIMUM AVAILABILITY OF THE NET PROCEEDS OF BINGO EXCLUSIVELY FOR APPLI-
CATION TO THE WORTHY CAUSES AND UNDERTAKINGS SPECIFIED HEREIN; THAT THE
S. 2009 113 A. 3009
ONLY JUSTIFICATION FOR THIS TITLE IS TO FOSTER AND SUPPORT SUCH WORTHY
CAUSES AND UNDERTAKINGS, AND THAT THE MANDATE OF SECTION NINE OF ARTICLE
ONE OF THE STATE CONSTITUTION, AS AMENDED, SHOULD BE CARRIED OUT BY
RIGID REGULATION TO PREVENT COMMERCIALIZED GAMBLING, PREVENT PARTIC-
IPATION BY CRIMINAL AND OTHER UNDESIRABLE ELEMENTS AND PREVENT THE
DIVERSION OF FUNDS FROM THE PURPOSES HEREIN AUTHORIZED.
§ 1512. OTHER AGENCY ASSISTANCE. TO EFFECTUATE THE PURPOSES OF THIS
TITLE, THE GOVERNOR MAY AUTHORIZE ANY DEPARTMENT, DIVISION, BOARD,
BUREAU, COMMISSION OR AGENCY OF THE STATE OR IN ANY POLITICAL SUBDIVI-
SION THEREOF TO PROVIDE SUCH FACILITIES, ASSISTANCE AND DATA AS WILL
ENABLE THE COMMISSION PROPERLY TO CARRY OUT ITS ACTIVITIES AND EFFECTU-
ATE ITS PURPOSES HEREUNDER.
§ 1513. POWERS AND DUTIES OF THE COMMISSION. 1. THE COMMISSION SHALL
HAVE THE POWER AND IT SHALL BE ITS DUTY TO:
(A) SUPERVISE THE ADMINISTRATION OF THE BINGO LICENSING LAW AND ADOPT,
AMEND AND REPEAL RULES AND REGULATIONS GOVERNING THE ISSUANCE AND AMEND-
MENT OF LICENSES THEREUNDER AND THE CONDUCTING OF BINGO UNDER SUCH
LICENSES, WHICH RULES AND REGULATIONS SHALL HAVE THE FORCE AND EFFECT OF
LAW AND SHALL BE BINDING UPON ALL MUNICIPALITIES ISSUING LICENSES AND
UPON LICENSEES THEREUNDER AND LICENSEES OF THE COMMISSION, TO THE END
THAT SUCH LICENSES SHALL BE ISSUED TO QUALIFIED LICENSEES ONLY AND THAT
SAID BINGO GAMES SHALL BE FAIRLY AND PROPERLY CONDUCTED FOR THE PURPOSES
AND IN THE MANNER IN THE SAID BINGO LICENSING LAW PRESCRIBED AND TO
PREVENT THE BINGO GAMES THEREBY AUTHORIZED TO BE CONDUCTED FROM BEING
CONDUCTED FOR COMMERCIAL PURPOSES OR PURPOSES OTHER THAN THOSE THEREIN
AUTHORIZED, PARTICIPATED IN BY CRIMINAL OR OTHER UNDESIRABLE ELEMENTS
AND THE FUNDS DERIVED FROM THE BINGO GAMES BEING DIVERTED FROM THE
PURPOSES AUTHORIZED, AND, TO PROVIDE UNIFORMITY IN THE ADMINISTRATION OF
SAID LAW THROUGHOUT THE STATE, THE COMMISSION SHALL PRESCRIBE FORMS OF
APPLICATION FOR LICENSES, LICENSES, AMENDMENT OF LICENSES, REPORTS OF
THE CONDUCT OF BINGO GAMES AND OTHER MATTERS INCIDENT TO THE ADMINIS-
TRATION OF SUCH LAW;
(B) CONDUCT, ANYWHERE WITHIN THE STATE, INVESTIGATIONS OF THE ADMINIS-
TRATION, ENFORCEMENT AND POTENTIAL OR ACTUAL VIOLATIONS OF THE BINGO
LICENSING LAW AND OF THE RULES AND REGULATIONS OF THE COMMISSION;
(C) REVIEW ALL DETERMINATIONS AND ACTIONS OF THE MUNICIPAL GOVERNING
BODY IN ISSUING AN INITIAL LICENSE AND REVIEW THE ISSUANCE OF SUBSEQUENT
LICENSES AND, AFTER HEARING, REVOKE THOSE LICENSES THAT DO NOT IN ALL
RESPECTS MEET THE REQUIREMENTS OF THIS TITLE AND THE RULES AND REGU-
LATIONS OF THE COMMISSION;
(D) SUSPEND OR REVOKE A LICENSE, AFTER HEARING, FOR ANY VIOLATION OF
THE PROVISIONS OF THIS TITLE OR THE RULES AND REGULATIONS OF THE COMMIS-
SION;
(E) HEAR APPEALS FROM THE DETERMINATIONS AND ACTION OF THE MUNICIPAL
GOVERNING BODY IN CONNECTION WITH THE REFUSING TO ISSUE LICENSES, THE
SUSPENSION AND REVOCATION OF LICENSES AND THE IMPOSITION OF FINES IN THE
MANNER PRESCRIBED BY LAW AND THE ACTION AND DETERMINATION OF THE COMMIS-
SION UPON ANY SUCH APPEAL SHALL BE BINDING UPON THE MUNICIPAL GOVERNING
BODY AND ALL PARTIES THERETO;
(F) INITIATE PROSECUTIONS FOR VIOLATIONS OF THIS TITLE AND OF THE
BINGO LICENSING LAW;
(G) CARRY ON CONTINUOUS STUDY OF THE OPERATION OF THE BINGO LICENSING
LAW TO ASCERTAIN FROM TIME TO TIME DEFECTS THEREIN JEOPARDIZING OR
THREATENING TO JEOPARDIZE THE PURPOSES OF THIS TITLE AND TO FORMULATE
AND RECOMMEND CHANGES IN SUCH LAW AND IN OTHER LAWS OF THE STATE THAT
THE COMMISSION MAY DETERMINE TO BE NECESSARY FOR THE REALIZATION OF SUCH
S. 2009 114 A. 3009
PURPOSES, AND TO THE SAME END TO MAKE A CONTINUOUS STUDY OF THE OPERA-
TION AND ADMINISTRATION OF SIMILAR LAWS THAT MAY BE IN EFFECT IN OTHER
STATES OF THE UNITED STATES;
(H) SUPERVISE THE DISPOSITION OF ALL FUNDS DERIVED FROM THE CONDUCT OF
BINGO BY AUTHORIZED ORGANIZATIONS NOT CURRENTLY LICENSED TO CONDUCT SUCH
BINGO GAMES; AND
(I) ISSUE AN IDENTIFICATION NUMBER TO AN APPLICANT AUTHORIZED ORGAN-
IZATION IF THE COMMISSION DETERMINES THAT THE APPLICANT SATISFIES THE
REQUIREMENTS OF THE BINGO LICENSING LAW AND THE RULES AND REGULATIONS OF
THE COMMISSION.
2. (A) THE COMMISSION SHALL HAVE THE POWER TO ISSUE OR, AFTER HEARING,
REFUSE TO ISSUE A LICENSE PERMITTING A PERSON, FIRM OR CORPORATION TO
SELL OR DISTRIBUTE TO ANY OTHER PERSON, FIRM OR CORPORATION ENGAGED IN
BUSINESS AS A WHOLESALER, JOBBER, DISTRIBUTOR OR RETAILER OF ALL CARDS,
BOARDS, SHEETS, PADS AND ALL OTHER SUPPLIES, DEVICES AND EQUIPMENT
DESIGNED FOR USE IN THE PLAY OF BINGO BY AN ORGANIZATION DULY LICENSED
TO CONDUCT BINGO GAMES OR TO SELL OR DISTRIBUTE ANY SUCH MATERIALS
DIRECTLY TO SUCH AN ORGANIZATION. FOR THE PURPOSES OF THIS SECTION THE
WORDS "SELL OR DISTRIBUTE" SHALL INCLUDE, WITHOUT LIMITATION, THE
FOLLOWING ACTIVITIES: OFFERING FOR SALE, RECEIVING, HANDLING, MAINTAIN-
ING, STORING THE SAME ON BEHALF OF SUCH AN ORGANIZATION, DISTRIBUTING OR
PROVIDING THE SAME TO SUCH AN ORGANIZATION AND OFFERING FOR SALE OR
LEASE BINGO DEVICES AND EQUIPMENT. EACH SUCH LICENSE SHALL BE VALID FOR
ONE YEAR.
(B) (1) NO PERSON, FIRM OR CORPORATION, OTHER THAN AN ORGANIZATION
THAT IS OR HAS BEEN DURING THE PRECEDING TWELVE MONTHS DULY LICENSED TO
CONDUCT BINGO GAMES, SHALL SELL OR DISTRIBUTE BINGO SUPPLIES OR EQUIP-
MENT WITHOUT HAVING FIRST OBTAINED A LICENSE THEREFOR UPON WRITTEN
APPLICATION MADE, VERIFIED AND FILED WITH THE COMMISSION IN THE FORM
PRESCRIBED BY THE RULES AND REGULATIONS OF THE COMMISSION.
(2) THE COMMISSION, AS A PART OF ITS DETERMINATION CONCERNING THE
APPLICANT'S SUITABILITY FOR LICENSING AS A BINGO SUPPLIER, SHALL REQUIRE
THE APPLICANT TO FURNISH TO THE COMMISSION TWO SETS OF FINGERPRINTS.
SUCH FINGERPRINTS SHALL BE SUBMITTED TO THE DIVISION OF CRIMINAL JUSTICE
SERVICES FOR A STATE CRIMINAL HISTORY RECORD CHECK, AS DEFINED IN SUBDI-
VISION ONE OF SECTION THREE THOUSAND THIRTY-FIVE OF THE EDUCATION LAW,
AND MAY BE SUBMITTED TO THE FEDERAL BUREAU OF INVESTIGATION FOR A
NATIONAL CRIMINAL HISTORY RECORD CHECK.
(3) IN EACH SUCH APPLICATION FOR A LICENSE UNDER THIS SECTION SHALL BE
STATED:
(I) THE NAME AND ADDRESS OF THE APPLICANT;
(II) THE NAMES AND ADDRESSES OF ITS OFFICERS, DIRECTORS, SHAREHOLDERS
OR PARTNERS;
(III) THE AMOUNT OF GROSS RECEIPTS REALIZED ON THE SALE OR DISTRIB-
UTION OF BINGO SUPPLIES AND EQUIPMENT TO DULY LICENSED ORGANIZATIONS
DURING THE LAST PRECEDING CALENDAR OR FISCAL YEAR; AND
(IV) SUCH OTHER INFORMATION AS SHALL BE PRESCRIBED BY SUCH RULES AND
REGULATIONS.
(4) THE FEE FOR SUCH LICENSE SHALL BE AS PRESCRIBED BY REGULATION OF
THE COMMISSION, WHICH SHALL TAKE INTO ACCOUNT THE QUANTITY OF GROSS
SALES OF THE APPLICANT.
(C) THE FOLLOWING SHALL BE INELIGIBLE FOR SUCH A LICENSE:
(1) A PERSON CONVICTED OF A CRIME IF THERE IS A DIRECT RELATIONSHIP
BETWEEN ONE OR MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE INTEGRITY
OF BINGO, CONSIDERING THE FACTORS SET FORTH IN SECTION SEVEN HUNDRED
FIFTY-THREE OF THE CORRECTION LAW;
S. 2009 115 A. 3009
(2) A PERSON WHO IS OR HAS BEEN A PROFESSIONAL GAMBLER OR GAMBLING
PROMOTER OR WHO FOR OTHER REASONS IS NOT OF GOOD MORAL CHARACTER;
(3) A PUBLIC OFFICER OR EMPLOYEE;
(4) AN OPERATOR OR PROPRIETOR OF A COMMERCIAL HALL DULY LICENSED UNDER
THE BINGO LICENSING LAW; AND
(5) A FIRM OR CORPORATION IN WHICH A PERSON DEFINED IN SUBPARAGRAPH
ONE, TWO, THREE OR FOUR OF THIS PARAGRAPH, OR A PERSON MARRIED OR
RELATED IN THE FIRST DEGREE TO SUCH A PERSON, HAS GREATER THAN A TEN
PERCENT PROPRIETARY, EQUITABLE OR CREDIT INTEREST OR IN WHICH SUCH A
PERSON IS ACTIVE OR EMPLOYED.
(D) THE COMMISSION SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE EXAMINED
THE BOOKS AND RECORDS OF ANY APPLICANT FOR A LICENSE, OR ANY LICENSEE,
UNDER THIS SECTION. ANY INFORMATION SO RECEIVED SHALL NOT BE DISCLOSED
EXCEPT SO FAR AS MAY BE NECESSARY FOR THE PURPOSE OF CARRYING OUT THE
PROVISIONS OF THIS ARTICLE.
(E) ANY SOLICITATION OF AN ORGANIZATION LICENSED TO CONDUCT BINGO
GAMES, TO PURCHASE OR INDUCE THE PURCHASE OF BINGO SUPPLIES AND EQUIP-
MENT, OR ANY REPRESENTATION, STATEMENT OR INQUIRY DESIGNED OR REASONABLY
TENDING TO INFLUENCE SUCH AN ORGANIZATION TO PURCHASE THE SAME, OTHER
THAN BY A PERSON LICENSED OR OTHERWISE AUTHORIZED PURSUANT TO THIS
SECTION SHALL CONSTITUTE A VIOLATION OF THIS SECTION.
(F) ANY PERSON WHO WILLFULLY MAKES ANY MATERIAL FALSE STATEMENT IN ANY
APPLICATION FOR A LICENSE AUTHORIZED TO BE ISSUED UNDER THIS TITLE OR
WHO WILLFULLY VIOLATES ANY OF THE PROVISIONS OF THIS SECTION OR OF ANY
LICENSE ISSUED HEREUNDER SHALL BE GUILTY OF A MISDEMEANOR AND, IN ADDI-
TION TO THE PENALTIES IN SUCH CASE MADE AND PROVIDED, SHALL FORFEIT ANY
LICENSE ISSUED TO HIM, HER OR IT UNDER THIS SECTION AND BE INELIGIBLE TO
APPLY FOR A LICENSE UNDER THIS SECTION FOR ONE YEAR THEREAFTER.
(G) AT THE END OF THE LICENSE PERIOD, A RECAPITULATION SHALL BE MADE
AS BETWEEN THE LICENSEE AND THE COMMISSION IN RESPECT OF THE GROSS SALES
ACTUALLY RECORDED DURING THE LICENSE PERIOD AND THE FEE PAID THEREFOR,
AND ANY DEFICIENCY OF FEE THEREBY SHOWN TO BE DUE SHALL BE PAID BY THE
LICENSEE AND ANY EXCESS OF FEE THEREBY SHOWN TO HAVE BEEN PAID SHALL BE
CREDITED TO SAID LICENSEE IN SUCH MANNER AS THE COMMISSION BY THE RULES
AND REGULATIONS SHALL PRESCRIBE.
3. THE COMMISSION SHALL HAVE THE POWER TO APPROVE AND ESTABLISH A
STANDARD SET OF BINGO CARDS COMPRISING A CONSECUTIVELY NUMBERED SERIES
AND SHALL BY RULES AND REGULATIONS PRESCRIBE THE MANNER IN WHICH SUCH
CARDS ARE TO BE REPRODUCED AND DISTRIBUTED TO LICENSED AUTHORIZED ORGAN-
IZATIONS. THE SALE OR DISTRIBUTION TO A LICENSED AUTHORIZED ORGANIZATION
OF ANY CARD OR CARDS OTHER THAN THOSE CONTAINED IN THE STANDARD SET OF
BINGO CARDS SHALL CONSTITUTE A VIOLATION OF THIS SECTION. LICENSED
AUTHORIZED ORGANIZATIONS SHALL NOT BE REQUIRED TO USE NOR TO MAINTAIN
SUCH CARDS SERIATIM EXCEPTING THAT THE SAME MAY BE REQUIRED IN THE
CONDUCT OF LIMITED-PERIOD BINGO GAMES.
§ 1514. HEARINGS; IMMUNITY. 1. A HEARING UPON ANY INVESTIGATION OR
REVIEW AUTHORIZED BY THIS ARTICLE MAY BE CONDUCTED BY TWO OR MORE
MEMBERS OF THE COMMISSION OR BY A HEARING OFFICER DULY DESIGNATED BY THE
COMMISSION, AS THE COMMISSION SHALL DETERMINE.
2. A PERSON WHO HAS VIOLATED ANY PROVISION OF THIS ARTICLE, OR OF THE
RULES AND REGULATIONS OF THE COMMISSION, OR ANY TERM OF ANY LICENSE
ISSUED UNDER THIS ARTICLE OR SUCH RULES AND REGULATIONS, IS A COMPETENT
WITNESS AGAINST ANOTHER PERSON SO CHARGED. IN ANY HEARING UPON ANY
INVESTIGATION OR REVIEW AUTHORIZED BY THIS ARTICLE, FOR OR RELATING TO A
VIOLATION OF ANY PROVISION OF SAID ARTICLE OR OF THE RULES AND REGU-
LATIONS OF THE COMMISSION OR OF THE TERM OF ANY SUCH LICENSE, THE
S. 2009 116 A. 3009
COMMISSION MAY CONFER IMMUNITY UPON SUCH WITNESS IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 50.20 OF THE CRIMINAL PROCEDURE LAW. SUCH IMMUNI-
TY SHALL BE CONFERRED ONLY UPON THE VOTE OF AT LEAST THREE MEMBERS OF
THE COMMISSION AND ONLY AFTER AFFORDING THE ATTORNEY GENERAL AND THE
APPROPRIATE DISTRICT ATTORNEY A REASONABLE OPPORTUNITY TO BE HEARD WITH
RESPECT TO ANY OBJECTIONS THAT THEY OR EITHER OF THEM MAY HAVE TO THE
GRANTING OF SUCH IMMUNITY.
§ 1515. PLACE OF INVESTIGATIONS AND HEARINGS; WITNESSES; BOOKS AND
DOCUMENTS. THE COMMISSION MAY CONDUCT INVESTIGATIONS AND HEARINGS WITHIN
OR WITHOUT THE STATE AND SHALL HAVE POWER TO COMPEL THE ATTENDANCE OF
WITNESSES, THE PRODUCTION OF BOOKS, RECORDS, DOCUMENTS AND OTHER
EVIDENCE BY THE ISSUANCE OF A SUBPOENA SIGNED BY A PERSON AUTHORIZED BY
THE COMMISSION TO DO SO.
§ 1516. PRIVILEGE AGAINST SELF-INCRIMINATION. THE WILLFUL REFUSAL TO
ANSWER A MATERIAL QUESTION OR THE ASSERTION OF PRIVILEGE AGAINST SELF-
INCRIMINATION DURING A HEARING UPON ANY INVESTIGATION OR REVIEW AUTHOR-
IZED BY THIS ARTICLE BY ANY LICENSEE OR ANY PERSON IDENTIFIED WITH ANY
LICENSEE AS AN OFFICER, DIRECTOR, STOCKHOLDER, PARTNER, MEMBER, EMPLOYEE
OR AGENT THEREOF SHALL CONSTITUTE SUFFICIENT CAUSE FOR THE REVOCATION OR
SUSPENSION OF ANY LICENSE ISSUED UNDER THIS TITLE OR UNDER THE LICENSING
LAW, AS THE COMMISSION OR AS THE MUNICIPAL GOVERNING BODY MAY DETERMINE.
§ 1517. FILING AND AVAILABILITY OF RULES AND REGULATIONS. A COPY OF
EVERY RULE AND REGULATION ADOPTED AND PROMULGATED BY THE COMMISSION
SHALL BE MADE AVAILABLE TO THE VARIOUS MUNICIPALITIES OPERATING UNDER
THE BINGO LICENSING LAW.
§ 1518. MUNICIPALITY TO FILE COPIES OF LOCAL LAWS AND ORDINANCES;
REPORTS. EACH MUNICIPALITY IN WHICH THE BINGO LICENSING LAW IS ADOPTED
SHALL FILE WITH THE COMMISSION A COPY OF EACH LOCAL LAW OR ORDINANCE
ENACTED PURSUANT THERETO WITHIN TEN DAYS AFTER THE SAME HAS BEEN
APPROVED BY A MAJORITY OF THE ELECTORS VOTING ON A PROPOSITION SUBMITTED
AT A GENERAL OR SPECIAL ELECTION, OR WITHIN TEN DAYS AFTER THE SAME HAS
BEEN AMENDED OR REPEALED BY THE COMMON COUNCIL OR OTHER LOCAL LEGISLA-
TIVE BODY AND ON OR BEFORE FEBRUARY FIRST OF EACH YEAR, AND AT ANY OTHER
TIME OR TIMES THAT THE COMMISSION MAY DETERMINE, MAKE A REPORT TO THE
COMMISSION OF THE NUMBER OF LICENSES ISSUED THEREIN UNDER THE BINGO
LICENSING LAW, THE NAMES AND ADDRESSES OF THE LICENSEES, THE AGGREGATE
AMOUNT OF LICENSE FEES COLLECTED, THE NAMES AND ADDRESSES OF ALL PERSONS
DETECTED OF VIOLATING THE BINGO LICENSING LAW, THIS TITLE OR THE RULES
AND REGULATIONS ADOPTED BY THE COMMISSION PURSUANT HERETO, AND OF ALL
PERSONS PROSECUTED FOR SUCH VIOLATIONS AND THE RESULT OF EACH SUCH PROS-
ECUTION, THE PENALTIES IMPOSED THEREIN DURING THE PRECEDING CALENDAR
YEAR, OR THE PERIOD FOR WHICH THE REPORT IS REQUIRED, WHICH REPORT MAY
CONTAIN ANY RECOMMENDATIONS FOR IMPROVEMENT OF THE BINGO LICENSING LAW
OR THE ADMINISTRATION THEREOF THAT THE GOVERNING BODY OF THE MUNICI-
PALITY DEEMS DESIRABLE.
TITLE 3
LOCAL OPTION FOR CONDUCT OF BINGO BY CERTAIN ORGANIZATIONS
SECTION 1520. SHORT TITLE; PURPOSE OF TITLE.
1521. LOCAL OPTION.
1522. LOCAL LAWS AND ORDINANCES.
1523. RESTRICTIONS UPON CONDUCT OF BINGO GAMES.
1524. APPLICATION FOR LICENSE.
1525. INVESTIGATION; MATTERS TO BE DETERMINED; ISSUANCE OF
LICENSE; FEES; DURATION OF LICENSE.
1526. HEARING; AMENDMENT OF LICENSE.
1527. FORM AND CONTENTS OF LICENSE; DISPLAY OF LICENSE.
S. 2009 117 A. 3009
1528. CONTROL AND SUPERVISION; SUSPENSION OF LICENSES;
INSPECTION OF PREMISES.
1529. FREQUENCY OF GAME; SALE OF ALCOHOLIC BEVERAGES.
1530. PERSONS OPERATING AND CONDUCTING BINGO GAMES; EQUIPMENT;
EXPENSES; COMPENSATION.
1531. CHARGE FOR ADMISSION AND PARTICIPATION; AMOUNT OF PRIZES;
AWARD OF PRIZES.
1532. STATEMENT OF RECEIPTS, EXPENSES; ADDITIONAL LICENSE FEES.
1533. EXAMINATION OF BOOKS AND RECORDS; EXAMINATION OF MANAGERS,
ETC.; DISCLOSURE OF INFORMATION.
1534. APPEALS FROM MUNICIPAL GOVERNING BODY TO COMMISSION.
1535. EXEMPTION FROM PROSECUTION.
1536. OFFENSES; FORFEITURE OF LICENSE; INELIGIBILITY TO APPLY
FOR LICENSE.
1537. UNLAWFUL BINGO.
1538. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS.
1539. AMENDMENT AND REPEAL OF LOCAL LAWS AND ORDINANCES.
1540. DELEGATION OF AUTHORITY.
1541. POWERS AND DUTIES OF MAYORS OR MANAGERS OF CERTAIN CITIES.
§ 1520. SHORT TITLE; PURPOSE OF TITLE. THIS TITLE SHALL BE KNOWN AND
MAY BE CITED AS THE BINGO LICENSING LAW. THE LEGISLATURE HEREBY DECLARES
THAT THE RAISING OF FUNDS FOR THE PROMOTION OF BONA FIDE CHARITABLE,
EDUCATIONAL, SCIENTIFIC, HEALTH, RELIGIOUS, CIVIC AND PATRIOTIC CAUSES
AND UNDERTAKINGS, WHERE THE BENEFICIARIES ARE INDEFINITE, IS IN THE
PUBLIC INTEREST. IT HEREBY FINDS THAT, AS CONDUCTED PRIOR TO THE EFFEC-
TIVE DATE OF THIS TITLE, BINGO WAS THE SUBJECT OF EXPLOITATION BY
PROFESSIONAL GAMBLERS, PROMOTERS, AND COMMERCIAL INTERESTS. IT IS HEREBY
DECLARED TO BE THE POLICY OF THE LEGISLATURE THAT ALL PHASES OF THE
SUPERVISION, LICENSING AND REGULATION OF BINGO AND OF THE CONDUCT OF
BINGO GAMES, SHOULD BE CLOSELY CONTROLLED AND THAT THE LAWS AND REGU-
LATIONS PERTAINING THERETO SHOULD BE STRICTLY CONSTRUED AND RIGIDLY
ENFORCED; THAT THE CONDUCT OF THE BINGO GAME AND ALL ATTENDANT ACTIV-
ITIES SHOULD BE SO REGULATED AND ADEQUATE CONTROLS SO INSTITUTED AS TO
DISCOURAGE COMMERCIALIZATION IN ALL ITS FORMS, INCLUDING THE RENTAL OF
COMMERCIAL PREMISES FOR BINGO GAMES, AND TO ENSURE A MAXIMUM AVAILABILI-
TY OF THE NET PROCEEDS OF BINGO EXCLUSIVELY FOR APPLICATION TO THE
WORTHY CAUSES AND UNDERTAKINGS SPECIFIED HEREIN; THAT THE ONLY JUSTI-
FICATION FOR THIS TITLE IS TO FOSTER AND SUPPORT SUCH WORTHY CAUSES AND
UNDERTAKINGS, AND THAT THE MANDATE OF SECTION NINE OF ARTICLE ONE OF THE
STATE CONSTITUTION, AS AMENDED, SHOULD BE CARRIED OUT BY RIGID REGU-
LATION TO PREVENT COMMERCIALIZED GAMBLING, PREVENT PARTICIPATION BY
CRIMINAL AND OTHER UNDESIRABLE ELEMENTS AND PREVENT THE DIVERSION OF
FUNDS FROM THE PURPOSES HEREIN AUTHORIZED.
§ 1521. LOCAL OPTION. SUBJECT TO THE PROVISIONS OF THIS TITLE, AND
PURSUANT TO THE DIRECTION CONTAINED IN SUBDIVISION TWO OF SECTION NINE
OF ARTICLE ONE OF THE CONSTITUTION OF THE STATE, THE LEGISLATURE HEREBY
GIVES AND GRANTS TO EVERY MUNICIPALITY THE RIGHT, POWER AND AUTHORITY TO
AUTHORIZE THE CONDUCT OF BINGO GAMES BY AUTHORIZED ORGANIZATIONS WITHIN
THE TERRITORIAL LIMITS OF SUCH MUNICIPALITY PROVIDED, HOWEVER, THAT
WHERE THE ELECTORS OF A VILLAGE HEREAFTER APPROVE A LOCAL LAW OR ORDI-
NANCE PURSUANT TO SECTION FIFTEEN HUNDRED TWENTY-THREE OF THIS TITLE,
THE RIGHT, POWER AND AUTHORITY UNDER THIS TITLE OF ANY TOWN IN WHICH
SUCH VILLAGE IS LOCATED SHALL NOT EXTEND TO SUCH VILLAGE DURING SUCH
TIME AS SUCH VILLAGE LOCAL LAW OR ORDINANCE IS IN EFFECT.
§ 1522. LOCAL LAWS AND ORDINANCES. 1. THE COMMON COUNCIL OR OTHER
LOCAL LEGISLATIVE BODY OF ANY MUNICIPALITY MAY, EITHER BY LOCAL LAW OR
S. 2009 118 A. 3009
ORDINANCE, PROVIDE THAT IT SHALL BE LAWFUL FOR ANY AUTHORIZED ORGANIZA-
TION, UPON OBTAINING A LICENSE THEREFOR AS PROVIDED IN THIS TITLE, TO
CONDUCT THE GAME OF BINGO WITHIN THE TERRITORIAL LIMITS OF SUCH MUNICI-
PALITY, SUBJECT TO THE PROVISIONS OF SUCH LOCAL LAW OR ORDINANCE, THE
PROVISIONS OF THIS TITLE AND THE PROVISIONS OF THE BINGO CONTROL LAW.
2. NO SUCH LOCAL LAW OR ORDINANCE SHALL BECOME OPERATIVE OR EFFECTIVE
UNLESS AND UNTIL IT HAS BEEN APPROVED BY A MAJORITY OF THE ELECTORS
VOTING ON A PROPOSITION SUBMITTED AT A GENERAL OR SPECIAL ELECTION HELD
WITHIN SUCH MUNICIPALITY WHO ARE QUALIFIED TO VOTE FOR OFFICERS OF SUCH
MUNICIPALITY.
3. THE TIME, METHOD AND MANNER OF SUBMISSION, PREPARATION AND
PROVISION OF BALLOTS AND BALLOT LABELS, BALLOTING BY VOTING MACHINE AND
CONDUCTING THE ELECTION, CANVASSING THE RESULT AND MAKING AND FILING THE
RETURNS AND ALL OTHER PROCEDURE WITH REFERENCE TO THE SUBMISSION OF AND
ACTION UPON ANY PROPOSITION FOR THE APPROVAL OF ANY SUCH LOCAL LAW OR
ORDINANCE SHALL BE THE SAME AS IN THE CASE OF ANY OTHER PROPOSITION TO
BE SUBMITTED TO THE ELECTORS OF SUCH MUNICIPALITY AT A GENERAL OR
SPECIAL ELECTION IN SUCH MUNICIPALITY, AS PROVIDED BY LAW.
§ 1523. RESTRICTIONS UPON CONDUCT OF BINGO GAMES. THE CONDUCT OF BINGO
GAMES AUTHORIZED BY LOCAL LAW OR ORDINANCE SHALL BE SUBJECT TO THE
FOLLOWING RESTRICTIONS WITHOUT REGARD TO WHETHER SUCH RESTRICTIONS ARE
CONTAINED IN SUCH LOCAL LAW OR ORDINANCE, BUT NOTHING IN THIS SECTION
SHALL BE CONSTRUED TO PREVENT THE INCLUSION WITHIN SUCH LOCAL LAW OR
ORDINANCE OF OTHER PROVISIONS IMPOSING ADDITIONAL RESTRICTIONS UPON THE
CONDUCT OF BINGO GAMES:
1. NO PERSON, FIRM, ASSOCIATION, CORPORATION OR ORGANIZATION, OTHER
THAN A LICENSEE UNDER THE PROVISIONS OF THIS TITLE, SHALL
(A) CONDUCT BINGO; OR
(B) LEASE OR OTHERWISE MAKE AVAILABLE FOR CONDUCTING BINGO A HALL OR
OTHER PREMISES FOR ANY CONSIDERATION WHATSOEVER, DIRECT OR INDIRECT,
WITHOUT OBTAINING THE PRIOR WRITTEN APPROVAL OF THE COMMISSION.
2. NO BINGO GAMES SHALL BE HELD, OPERATED OR CONDUCTED ON OR WITHIN
ANY LEASED PREMISES IF RENTAL UNDER SUCH LEASE IS TO BE PAID, WHOLLY OR
PARTLY, ON THE BASIS OF A PERCENTAGE OF THE RECEIPTS OR NET PROFITS
DERIVED FROM THE OPERATION OF SUCH GAME.
3. NO AUTHORIZED ORGANIZATION LICENSED UNDER THE PROVISIONS OF THIS
TITLE SHALL PURCHASE, LEASE OR RECEIVE ANY SUPPLIES OR EQUIPMENT SPECIF-
ICALLY DESIGNED OR ADAPTED FOR USE IN THE CONDUCT OF BINGO GAMES FROM
OTHER THAN A SUPPLIER LICENSED UNDER THE BINGO CONTROL LAW OR FROM
ANOTHER AUTHORIZED ORGANIZATION.
4. THE ENTIRE NET PROCEEDS OF ANY GAME OF BINGO AND OF ANY RENTAL
SHALL BE DEVOTED EXCLUSIVELY TO THE LAWFUL PURPOSES OF THE ORGANIZATION
PERMITTED TO CONDUCT THE SAME.
5. NO PRIZE SHALL EXCEED THE SUM OR VALUE OF FIVE THOUSAND DOLLARS IN
ANY SINGLE GAME OF BINGO.
6. NO SERIES OF PRIZES ON ANY ONE BINGO OCCASION SHALL AGGREGATE MORE
THAN FIFTEEN THOUSAND DOLLARS.
7. NO PERSON EXCEPT A BONA FIDE MEMBER OF ANY SUCH ORGANIZATION SHALL
PARTICIPATE IN THE MANAGEMENT OR OPERATION OF SUCH BINGO GAME.
8. NO PERSON SHALL RECEIVE ANY REMUNERATION FOR PARTICIPATING IN THE
MANAGEMENT OR OPERATION OF ANY GAME OF BINGO.
9. THE UNAUTHORIZED CONDUCT OF A BINGO GAME AND ANY WILLFUL VIOLATION
OF ANY PROVISION OF ANY LOCAL LAW OR ORDINANCE SHALL CONSTITUTE AND BE
PUNISHABLE AS A MISDEMEANOR.
10. NO PERSON LICENSED TO SELL BINGO SUPPLIES OR EQUIPMENT, OR ANY
AGENT OF SUCH PERSON, SHALL CONDUCT, PARTICIPATE IN OR ASSIST IN THE
S. 2009 119 A. 3009
CONDUCT OF BINGO. NOTHING HEREIN SHALL PROHIBIT A LICENSED DISTRIBUTOR
FROM SELLING, OFFERING FOR SALE OR EXPLAINING A PRODUCT TO AN AUTHORIZED
ORGANIZATION OR INSTALLING OR SERVICING BINGO EQUIPMENT UPON THE PREM-
ISES OF A BINGO GAME LICENSEE.
11. LIMITED-PERIOD BINGO SHALL BE CONDUCTED IN ACCORDANCE WITH THE
PROVISIONS OF THIS TITLE AND THE RULES AND REGULATIONS OF THE COMMIS-
SION.
§ 1524. APPLICATION FOR LICENSE. 1. TO CONDUCT BINGO. (A) EACH APPLI-
CANT FOR A LICENSE TO CONDUCT BINGO SHALL, AFTER OBTAINING AN IDENTIFI-
CATION NUMBER FROM THE COMMISSION, FILE WITH THE CLERK OF THE MUNICI-
PALITY AN APPLICATION THEREFOR IN THE FORM PRESCRIBED IN THE RULES AND
REGULATIONS OF THE COMMISSION, DULY EXECUTED AND VERIFIED, IN WHICH SUCH
APPLICANT SHALL STATE:
(1) THE NAME AND ADDRESS OF THE APPLICANT TOGETHER WITH SUFFICIENT
FACTS RELATING TO SUCH APPLICANT'S INCORPORATION AND ORGANIZATION TO
ENABLE THE GOVERNING BODY OF THE MUNICIPALITY TO DETERMINE WHETHER OR
NOT THE APPLICANT IS A BONA FIDE AUTHORIZED ORGANIZATION;
(2) THE NAMES AND ADDRESSES OF THE APPLICANT'S OFFICERS;
(3) THE PLACE OR PLACES WHERE, AND THE DATE OR DATES AND THE TIME OR
TIMES WHEN, THE APPLICANT INTENDS TO CONDUCT BINGO UNDER THE LICENSE
APPLIED FOR;
(4) IN CASE THE APPLICANT INTENDS TO LEASE PREMISES FOR THIS PURPOSE
FROM OTHER THAN AN AUTHORIZED ORGANIZATION, THE NAME AND ADDRESS OF THE
LICENSED BINGO LESSOR OF SUCH PREMISES, AND THE CAPACITY OR POTENTIAL
CAPACITY FOR PUBLIC ASSEMBLY PURPOSES OF SPACE IN ANY PREMISES PRESENTLY
OWNED OR OCCUPIED BY THE APPLICANT;
(5) THE AMOUNT OF RENT TO BE PAID OR OTHER CONSIDERATION TO BE GIVEN
DIRECTLY OR INDIRECTLY FOR EACH OCCASION FOR USE OF THE PREMISES OF
ANOTHER AUTHORIZED ORGANIZATION LICENSED UNDER THIS TITLE TO CONDUCT
BINGO OR FOR USE OF THE PREMISES OF A LICENSED BINGO LESSOR;
(6) ALL OTHER ITEMS OF EXPENSE INTENDED TO BE INCURRED OR PAID IN
CONNECTION WITH THE HOLDING, OPERATING AND CONDUCTING OF SUCH GAMES OF
BINGO AND THE NAMES AND ADDRESSES OF THE PERSONS TO BE PAID AND THE
PURPOSES FOR WHICH SUCH PERSONS ARE TO BE PAID;
(7) THE SPECIFIC PURPOSES TO WHICH THE ENTIRE NET PROCEEDS OF SUCH
GAMES OF BINGO ARE TO BE DEVOTED AND IN WHAT MANNER;
(8) THAT NO COMMISSION, SALARY, COMPENSATION, REWARD OR RECOMPENSE
WILL BE PAID TO ANY PERSON FOR CONDUCTING SUCH BINGO GAME OR GAMES OR
FOR ASSISTING THEREIN EXCEPT AS IN THIS TITLE OTHERWISE PROVIDED; AND
(9) SUCH OTHER INFORMATION AS SHALL BE PRESCRIBED BY THE RULES AND
REGULATIONS OF THE COMMISSION.
(B) IN EACH APPLICATION THERE SHALL BE DESIGNATED AN ACTIVE MEMBER OR
MEMBERS OF THE APPLICANT ORGANIZATION UNDER WHOM THE GAME OR GAMES OF
BINGO WILL BE CONDUCTED AND TO THE APPLICATION SHALL BE APPENDED A
STATEMENT EXECUTED BY THE MEMBER OR MEMBERS SO DESIGNATED, THAT HE, SHE
OR THEY WILL BE RESPONSIBLE FOR THE CONDUCT OF SUCH BINGO GAMES IN
ACCORDANCE WITH THE TERMS OF THE LICENSE AND THE RULES AND REGULATIONS
OF THE COMMISSION AND OF THIS TITLE.
2. BINGO LESSOR. (A) EACH APPLICANT FOR A LICENSE TO LEASE PREMISES TO
A LICENSED ORGANIZATION FOR THE PURPOSES OF CONDUCTING BINGO THEREIN
SHALL FILE WITH THE CLERK OF THE MUNICIPALITY AN APPLICATION THEREFOR IN
A FORM PRESCRIBED IN THE RULES AND REGULATIONS OF THE COMMISSION DULY
EXECUTED AND VERIFIED, WHICH SHALL SET FORTH:
(1) THE NAME AND ADDRESS OF THE APPLICANT;
(2) DESIGNATION AND ADDRESS OF THE PREMISES INTENDED TO BE COVERED BY
THE LICENSE SOUGHT;
S. 2009 120 A. 3009
(3) LAWFUL CAPACITY FOR PUBLIC ASSEMBLY PURPOSES;
(4) COST OF PREMISES AND ASSESSED VALUATION FOR REAL ESTATE TAX
PURPOSES, OR ANNUAL NET LEASE RENT, WHICHEVER IS APPLICABLE;
(5) GROSS RENTALS RECEIVED AND ITEMIZED EXPENSES FOR THE IMMEDIATELY
PRECEDING CALENDAR OR FISCAL YEAR, IF ANY;
(6) GROSS RENTALS, IF ANY, DERIVED FROM BINGO DURING THE LAST PRECED-
ING CALENDAR OR FISCAL YEAR;
(7) COMPUTATION BY WHICH PROPOSED RENTAL SCHEDULE WAS DETERMINED;
(8) NUMBER OF OCCASIONS ON WHICH APPLICANT ANTICIPATES RECEIVING RENT
FOR BINGO DURING THE ENSUING YEAR OR SHORTER PERIOD IF APPLICABLE;
(9) PROPOSED RENT FOR EACH SUCH OCCASION; ESTIMATED GROSS RENTAL
INCOME FROM ALL OTHER SOURCES DURING THE ENSUING YEAR;
(10) ESTIMATED EXPENSES ITEMIZED FOR ENSUING YEAR AND AMOUNT OF EACH
ITEM ALLOCATED TO BINGO RENTALS;
(11) A STATEMENT THAT THE APPLICANT IN ALL RESPECTS CONFORMS WITH THE
SPECIFICATIONS CONTAINED IN THE DEFINITION OF "AUTHORIZED BINGO LESSOR"
SET FORTH IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE; AND
(12) SUCH OTHER INFORMATION AS SHALL BE PRESCRIBED BY THE RULES AND
REGULATIONS OF THE COMMISSION.
(B) AT THE END OF THE LICENSE PERIOD, A RECAPITULATION, IN A MANNER
PRESCRIBED IN THE RULES AND REGULATIONS OF THE COMMISSION, SHALL BE MADE
AS BETWEEN THE LICENSEE AND THE MUNICIPAL GOVERNING BODY IN RESPECT OF
THE GROSS RENTAL ACTUALLY RECEIVED DURING THE LICENSE PERIOD AND THE FEE
PAID THEREFOR. THE LICENSEE SHALL PAY ANY DEFICIENCY OF FEE THEREBY
SHOWN TO BE DUE AND ANY EXCESS OF FEE THEREBY SHOWN TO HAVE BEEN PAID
SHALL BE CREDITED TO SUCH LICENSEE, IN SUCH MANNER AS THE COMMISSION BY
RULES AND REGULATIONS SHALL PRESCRIBE.
§ 1525. INVESTIGATION; MATTERS TO BE DETERMINED; ISSUANCE OF LICENSE;
FEES; DURATION OF LICENSE. 1. THE GOVERNING BODY OF THE MUNICIPALITY
SHALL MAKE AN INVESTIGATION OF THE QUALIFICATIONS OF EACH APPLICANT AND
THE MERITS OF EACH APPLICATION, WITH DUE EXPEDITION AFTER THE FILING OF
THE APPLICATION.
(A) ISSUANCE OF LICENSES TO CONDUCT BINGO. IF THE GOVERNING BODY OF
THE MUNICIPALITY DETERMINES:
(1) THAT THE APPLICANT IS DULY QUALIFIED TO BE LICENSED TO CONDUCT
BINGO UNDER THIS TITLE;
(2) THAT THE MEMBER OR MEMBERS OF THE APPLICANT DESIGNATED IN THE
APPLICATION TO CONDUCT BINGO ARE BONA FIDE ACTIVE MEMBERS OF THE APPLI-
CANT AND ARE PERSONS OF GOOD MORAL CHARACTER AND HAVE NEVER BEEN
CONVICTED OF A CRIME IF THERE IS A DIRECT RELATIONSHIP BETWEEN ONE OR
MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE INTEGRITY OF BINGO,
CONSIDERING THE FACTORS SET FORTH IN SECTION SEVEN HUNDRED FIFTY-THREE
OF THE CORRECTION LAW;
(3) THAT SUCH GAMES OF BINGO ARE TO BE CONDUCTED IN ACCORDANCE WITH
THE PROVISIONS OF THIS TITLE AND IN ACCORDANCE WITH THE RULES AND REGU-
LATIONS OF THE COMMISSION;
(4) THAT THE PROCEEDS THEREOF ARE TO BE DISPOSED OF AS PROVIDED BY
THIS TITLE;
(5) IF THE GOVERNING BODY IS SATISFIED THAT NO COMMISSION, SALARY,
COMPENSATION, REWARD OR RECOMPENSE WHATEVER WILL BE PAID OR GIVEN TO ANY
PERSON HOLDING, OPERATING OR CONDUCTING OR ASSISTING IN THE HOLDING,
OPERATION AND CONDUCT OF ANY SUCH GAMES OF BINGO EXCEPT AS IN THIS TITLE
OTHERWISE PROVIDED; AND
(6) THAT NO PRIZE WILL BE OFFERED AND GIVEN IN EXCESS OF THE SUM OR
VALUE OF FIVE THOUSAND DOLLARS IN ANY SINGLE GAME OF BINGO AND THAT THE
AGGREGATE OF ALL PRIZES OFFERED AND GIVEN IN ALL OF SUCH GAMES OF BINGO
S. 2009 121 A. 3009
CONDUCTED ON A SINGLE OCCASION, UNDER SAID LICENSE SHALL NOT EXCEED THE
SUM OR VALUE OF FIFTEEN THOUSAND DOLLARS, THEN THE MUNICIPALITY SHALL
ISSUE A LICENSE TO THE APPLICANT FOR THE CONDUCT OF BINGO UPON PAYMENT
OF A LICENSE FEE FOR EACH BINGO OCCASION, TO BE ESTABLISHED BY REGU-
LATION OF THE COMMISSION. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN
THIS PARAGRAPH, THE GOVERNING BODY SHALL REFUSE TO ISSUE A LICENSE TO AN
APPLICANT SEEKING TO CONDUCT BINGO IN PREMISES OF A LICENSED BINGO
LESSOR WHERE SUCH GOVERNING BODY DETERMINES THAT THE PREMISES PRESENTLY
OWNED OR OCCUPIED BY SUCH APPLICANT ARE IN EVERY RESPECT ADEQUATE AND
SUITABLE FOR CONDUCTING BINGO GAMES.
(B) ISSUANCE OF LICENSES TO BINGO LESSORS. IF THE GOVERNING BODY OF
THE MUNICIPALITY DETERMINES THAT:
(1) THE APPLICANT SEEKING TO LEASE A HALL OR PREMISES FOR THE CONDUCT
OF BINGO TO AN AUTHORIZED ORGANIZATION IS DULY QUALIFIED TO BE LICENSED
UNDER THIS TITLE;
(2) THE APPLICANT SATISFIES THE REQUIREMENTS FOR AN AUTHORIZED BINGO
LESSOR AS DEFINED IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE;
(3) AT THE TIME OF THE ISSUANCE OF AN INITIAL LICENSE, THERE IS A
PUBLIC NEED AND THAT PUBLIC ADVANTAGE WILL BE SERVED BY THE ISSUANCE OF
SUCH LICENSE;
(4) THE APPLICANT HAS FILED ITS PROPOSED RENT FOR EACH BINGO OCCASION;
(5) THE COMMISSION HAS APPROVED AS FAIR AND REASONABLE A SCHEDULE OF
MAXIMUM RENTALS FOR EACH SUCH OCCASION;
(6) THERE IS NO DIVERSION OF THE FUNDS OF THE PROPOSED LESSEE FROM THE
LAWFUL PURPOSES AS DEFINED IN THIS TITLE; AND
(7) SUCH LEASING OF A HALL OR PREMISES FOR THE CONDUCT OF BINGO IS TO
BE IN ACCORDANCE WITH THE PROVISIONS OF THIS TITLE AND IN ACCORDANCE
WITH THE RULES AND REGULATIONS OF THE COMMISSION, SUCH GOVERNING BODY
SHALL ISSUE A LICENSE PERMITTING THE APPLICANT TO LEASE SAID PREMISES
FOR THE CONDUCT OF BINGO TO THE AUTHORIZED ORGANIZATION OR ORGANIZATIONS
SPECIFIED IN THE APPLICATION DURING THE PERIOD THEREIN SPECIFIED OR SUCH
SHORTER PERIOD AS THE GOVERNING BODY OF THE MUNICIPALITY DETERMINES, BUT
NOT TO EXCEED ONE YEAR, UPON PAYMENT OF A LICENSE FEE ESTABLISHED BY
REGULATION OF THE COMMISSION.
2. ON OR BEFORE THE THIRTIETH DAY OF EACH MONTH, THE TREASURER OF THE
MUNICIPALITY SHALL TRANSMIT TO THE STATE COMPTROLLER A SUM EQUAL TO
FIFTY PERCENT OF ALL BINGO LESSOR LICENSE FEES AND AN AMOUNT ESTABLISHED
BY REGULATION OF THE COMMISSION PER OCCASION OF ALL LICENSE FEES FOR THE
CONDUCT OF BINGO COLLECTED BY SUCH MUNICIPALITY PURSUANT TO THIS SECTION
DURING THE PRECEDING CALENDAR MONTH.
3. NO LICENSE SHALL BE ISSUED UNDER THIS TITLE THAT IS EFFECTIVE FOR A
PERIOD OF MORE THAN ONE YEAR. IN THE CASE OF LIMITED-PERIOD BINGO, NO
LICENSE SHALL BE ISSUED AUTHORIZING THE CONDUCT OF SUCH GAMES ON MORE
THAN TWO OCCASIONS IN ANY ONE DAY, NOR SHALL ANY LICENSE BE ISSUED UNDER
THIS TITLE THAT IS EFFECTIVE FOR A PERIOD OF MORE THAN SEVEN OF TWELVE
CONSECUTIVE DAYS IN ANY ONE YEAR. NO LICENSE FOR THE CONDUCT OF LIMIT-
ED-PERIOD BINGO SHALL BE ISSUED IN CITIES HAVING A POPULATION OF ONE
MILLION OR MORE.
§ 1526. HEARING; AMENDMENT OF LICENSE. 1. NO APPLICATION FOR THE ISSU-
ANCE OF A LICENSE SHALL BE DENIED BY THE GOVERNING BODY UNTIL AFTER A
HEARING, HELD ON DUE NOTICE TO THE APPLICANT, AT WHICH THE APPLICANT
SHALL BE ENTITLED TO BE HEARD UPON THE QUALIFICATIONS OF THE APPLICANT
AND THE MERITS OF THE APPLICATION.
2. ANY LICENSE ISSUED UNDER THIS TITLE MAY BE AMENDED, UPON APPLICA-
TION MADE TO THE GOVERNING BODY OF THE MUNICIPALITY THAT ISSUED SUCH
LICENSE, IF THE SUBJECT MATTER OF THE PROPOSED AMENDMENT COULD LAWFULLY
S. 2009 122 A. 3009
AND PROPERLY HAVE BEEN INCLUDED IN THE ORIGINAL LICENSE AND UPON PAYMENT
OF SUCH ADDITIONAL LICENSE FEE IF ANY, AS WOULD HAVE BEEN PAYABLE IF
SUCH AMENDMENT HAD BEEN SO INCLUDED.
§ 1527. FORM AND CONTENTS OF LICENSE; DISPLAY OF LICENSE. 1. EACH
LICENSE TO CONDUCT BINGO SHALL BE IN SUCH FORM AS THE RULES AND REGU-
LATIONS OF THE COMMISSION PRESCRIBE AND SHALL CONTAIN:
(A) THE NAME AND ADDRESS OF THE LICENSEE;
(B) THE NAMES OF THE MEMBER OR MEMBERS OF THE LICENSEE UNDER WHOM THE
GAMES WILL BE CONDUCTED;
(C) THE PLACE OR PLACES WHERE AND THE DATE OR DATES AND TIME OR TIMES
WHEN SUCH GAMES ARE TO BE CONDUCTED;
(D) THE SPECIFIC PURPOSES TO WHICH THE ENTIRE NET PROCEEDS OF SUCH
GAMES ARE TO BE DEVOTED; AND
(E) IF ANY PRIZE OR PRIZES ARE TO BE OFFERED AND GIVEN IN CASH, A
STATEMENT OF THE AMOUNTS OF THE PRIZES AUTHORIZED SO TO BE OFFERED AND
GIVEN AND ANY OTHER INFORMATION THAT THE RULES AND REGULATIONS OF THE
COMMISSION MAY REQUIRE.
2. EACH LICENSE ISSUED FOR THE CONDUCT OF ANY GAME OF BINGO SHALL BE
DISPLAYED CONSPICUOUSLY AT THE PLACE WHERE SUCH GAME OF BINGO IS TO BE
CONDUCTED AT ALL TIMES DURING SUCH CONDUCT.
3. EACH LICENSE TO LEASE PREMISES FOR CONDUCTING BINGO SHALL BE IN
SUCH FORM AS THE RULES AND REGULATIONS OF THE COMMISSION PRESCRIBE AND
SHALL CONTAIN A STATEMENT OF THE NAME AND ADDRESS OF THE LICENSEE AND
THE ADDRESS OF THE LEASED PREMISES, THE AMOUNT OF PERMISSIBLE RENT AND
ANY OTHER INFORMATION THAT THE RULES AND REGULATIONS OF THE COMMISSION
MAY REQUIRE. EACH SUCH LICENSE SHALL BE DISPLAYED CONSPICUOUSLY UPON
SUCH PREMISES AT ALL TIMES DURING THE CONDUCT OF BINGO.
§ 1528. CONTROL AND SUPERVISION; SUSPENSION OF LICENSES; INSPECTION OF
PREMISES. 1. THE GOVERNING BODY OF ANY MUNICIPALITY ISSUING ANY LICENSE
UNDER THIS TITLE SHALL HAVE AND EXERCISE RIGID CONTROL AND CLOSE SUPER-
VISION OVER ALL GAMES OF BINGO CONDUCTED UNDER SUCH LICENSE, TO THE END
THAT THE SAME ARE FAIRLY CONDUCTED IN ACCORDANCE WITH THE PROVISIONS OF
SUCH LICENSE, THE PROVISIONS OF THE RULES AND REGULATIONS OF THE COMMIS-
SION AND THE PROVISIONS OF THIS TITLE AND SUCH GOVERNING BODY.
2. THE COMMISSION SHALL HAVE THE POWER AND THE AUTHORITY TO SUSPEND
ANY LICENSE ISSUED BY SUCH GOVERNING BODY AND TO REVOKE THE SAME, AND,
ADDITIONALLY, IN THE CASE OF AN AUTHORIZED BINGO LESSOR, TO IMPOSE A
FINE IN AN AMOUNT NOT EXCEEDING ONE THOUSAND DOLLARS, AFTER NOTICE AND
HEARING, FOR VIOLATION OF ANY SUCH PROVISIONS, AND SHALL HAVE THE RIGHT
OF ENTRY, BY THE COMMISSION'S OFFICERS AND AGENTS, AT ALL TIMES INTO ANY
PREMISES WHERE ANY GAME OF BINGO IS BEING CONDUCTED OR WHERE IT IS
INTENDED THAT ANY SUCH GAME OF BINGO SHALL BE CONDUCTED, OR WHERE ANY
EQUIPMENT BEING USED OR INTENDED TO BE USED IN THE CONDUCT THEREOF IS
FOUND, FOR THE PURPOSE OF INSPECTING THE SAME.
3. IN ADDITION TO THE AUTHORITY GRANTED PURSUANT TO SUBDIVISION TWO OF
THIS SECTION, THE GOVERNING BODY IN A CITY HAVING A POPULATION OF ONE
MILLION OR MORE AND THE COMMISSION MAY IMPOSE A FINE IN AN AMOUNT NOT
EXCEEDING ONE THOUSAND DOLLARS, AFTER NOTICE AND HEARING, ON ANY LICEN-
SEE UNDER THIS TITLE FOR VIOLATION OF ANY PROVISION OF SUCH LICENSE,
THIS TITLE OR RULES AND REGULATIONS OF THE COMMISSION.
§ 1529. FREQUENCY OF GAME; SALE OF ALCOHOLIC BEVERAGES. NO GAME OR
GAMES OF BINGO, EXCEPT LIMITED-PERIOD BINGO, SHALL BE CONDUCTED UNDER
ANY LICENSE ISSUED UNDER THIS TITLE MORE OFTEN THAN ON EIGHTEEN DAYS IN
ANY THREE SUCCESSIVE CALENDAR MONTHS. NO GAME OR GAMES OF LIMITED-PERIOD
BINGO SHALL BE CONDUCTED BETWEEN THE HOURS OF TWELVE MIDNIGHT AND NOON,
AND NO MORE THAN SIXTY GAMES MAY BE CONDUCTED ON ANY SINGLE OCCASION OF
S. 2009 123 A. 3009
LIMITED-PERIOD BINGO. NO GAME OR GAMES OF BINGO SHALL BE CONDUCTED IN
ANY ROOM OR OUTDOOR AREA WHERE ALCOHOLIC BEVERAGES ARE SOLD, SERVED OR
CONSUMED DURING THE PROGRESS OF THE GAME OR GAMES.
§ 1530. PERSONS OPERATING AND CONDUCTING BINGO GAMES; EQUIPMENT;
EXPENSES; COMPENSATION. 1. (A) NO PERSON SHALL HOLD, OPERATE OR CONDUCT
ANY GAME OF BINGO UNDER ANY LICENSE ISSUED UNDER THIS TITLE EXCEPT A
BONA FIDE MEMBER OF THE AUTHORIZED ORGANIZATION TO WHICH THE LICENSE IS
ISSUED. NO PERSON SHALL ASSIST IN THE HOLDING, OPERATING OR CONDUCTING
OF ANY GAME OF BINGO UNDER SUCH LICENSE EXCEPT SUCH A BONA FIDE MEMBER
OR A BONA FIDE MEMBER OF AN ORGANIZATION OR ASSOCIATION THAT IS AN
AUXILIARY TO THE LICENSEE OR A BONA FIDE MEMBER OF AN ORGANIZATION OR
ASSOCIATION OF WHICH SUCH LICENSEE IS AN AUXILIARY OR A BONA FIDE MEMBER
OF AN ORGANIZATION OR ASSOCIATION THAT IS AFFILIATED WITH THE LICENSEE
BY BEING, WITH IT, AUXILIARY TO ANOTHER ORGANIZATION OR ASSOCIATION AND
EXCEPT BOOKKEEPERS OR ACCOUNTANTS AS HEREINAFTER PROVIDED, BUT ANY
PERSON MAY ASSIST THE LICENSED ORGANIZATION IN ANY ACTIVITY RELATED TO
THE GAME OF BINGO THAT DOES NOT ACTUALLY INVOLVE THE HOLDING, CONDUCT-
ING, MANAGING OR OPERATING OF SUCH GAME OF BINGO.
(B) NO GAME OF BINGO SHALL BE CONDUCTED WITH ANY EQUIPMENT EXCEPT SUCH
AS SHALL BE OWNED ABSOLUTELY OR LEASED BY THE AUTHORIZED ORGANIZATION SO
LICENSED OR USED WITHOUT PAYMENT OF ANY COMPENSATION THEREFOR BY THE
LICENSEE.
(C) LEASE TERMS AND CONDITIONS SHALL BE SUBJECT TO THE RULES AND REGU-
LATIONS OF THE COMMISSION.
(D) THIS TITLE SHALL NOT BE CONSTRUED TO AUTHORIZE OR PERMIT AN
AUTHORIZED ORGANIZATION TO ENGAGE IN THE BUSINESS OF LEASING BINGO
SUPPLIES OR EQUIPMENT.
(E) NO ITEMS OF EXPENSE SHALL BE INCURRED OR PAID IN CONNECTION WITH
THE CONDUCTING OF ANY GAME OF BINGO PURSUANT TO ANY LICENSE ISSUED UNDER
THIS TITLE, EXCEPT THOSE THAT ARE REASONABLE AND ARE NECESSARILY
EXPENDED FOR BINGO SUPPLIES AND EQUIPMENT, PRIZES, STATED RENTAL, IF
ANY, BOOKKEEPING OR ACCOUNTING SERVICES ACCORDING TO A SCHEDULE OF
COMPENSATION PRESCRIBED BY THE COMMISSION, JANITORIAL SERVICES AND UTIL-
ITY SUPPLIES, IF ANY, AND LICENSE FEES, AND THE COST OF BUS TRANSPORTA-
TION, IF AUTHORIZED BY THE COMMISSION.
2. NOTWITHSTANDING ANY PROVISION OF THIS TITLE TO THE CONTRARY, A
PERSON WHO IS A BONA FIDE MEMBER OF AN ORGANIZATION LICENSED TO CONDUCT
THE GAME OF BINGO AND IS ALSO A BONA FIDE MEMBER OF ONE OR MORE OTHER
ORGANIZATIONS THAT ARE ALSO LICENSED TO CONDUCT THE GAME OF BINGO, AND
SUCH ORGANIZATIONS ARE NOT AFFILIATES OR AUXILIARIES OF THE OTHERS,
SHALL BE AUTHORIZED TO OPERATE, CONDUCT OR ASSIST IN THE OPERATION OR
CONDUCT OF GAMES OF BINGO HELD BY ANY OF SUCH ORGANIZATIONS LICENSED TO
CONDUCT BINGO.
§ 1531. CHARGE FOR ADMISSION AND PARTICIPATION; AMOUNT OF PRIZES;
AWARD OF PRIZES. 1. EXCEPT IN THE CONDUCT OF LIMITED-PERIOD BINGO, THE
REGULATIONS OF THE COMMISSION SHALL ESTABLISH A MAXIMUM AMOUNT TO BE
CHARGED BY ANY LICENSEE FOR ADMISSION TO ANY ROOM OR PLACE IN WHICH ANY
GAME OR GAMES OF BINGO ARE TO BE CONDUCTED UNDER ANY LICENSE ISSUED
UNDER THIS TITLE, WHICH ADMISSION FEE, UPON PAYMENT THEREOF, SHALL ENTI-
TLE THE PERSON PAYING THE SAME TO PARTICIPATE WITHOUT ADDITIONAL CHARGE
IN ALL REGULAR GAMES OF BINGO TO BE PLAYED UNDER SUCH LICENSE ON SUCH
OCCASION.
2. IN THE CONDUCT OF LIMITED-PERIOD BINGO:
(A) NO ADMISSION FEE SHALL BE CHARGED;
(B) NOT MORE THAN AN AMOUNT ESTABLISHED BY REGULATION OF THE COMMIS-
SION SHALL BE CHARGED FOR A SINGLE OPPORTUNITY TO PARTICIPATE IN ANY ONE
S. 2009 124 A. 3009
GAME OF BINGO, WHICH CHARGE, UPON PAYMENT THEREOF, SHALL ENTITLE THE
PERSON PAYING THE SAME TO ONE CARD FOR PARTICIPATION IN ONE SUCH GAME;
AND
(C) NO LICENSEE SHALL SELL MORE THAN FIVE OPPORTUNITIES TO EACH PLAYER
PARTICIPATING IN ANY ONE GAME OF BINGO. EVERY WINNER IN A GAME OF BINGO
SHALL BE DETERMINED AND EVERY PRIZE SHALL BE AWARDED AND DELIVERED WITH-
IN THE SAME CALENDAR DAY AS THAT UPON WHICH THE GAME OF BINGO WAS
PLAYED.
§ 1532. STATEMENT OF RECEIPTS, EXPENSES; ADDITIONAL LICENSE FEES. 1.
WITHIN SEVEN DAYS AFTER THE CONCLUSION OF ANY OCCASION OF BINGO, THE
AUTHORIZED ORGANIZATION THAT CONDUCTED THE SAME, AND SUCH AUTHORIZED
ORGANIZATION'S MEMBERS WHO WERE IN CHARGE THEREOF, AND WHEN APPLICABLE
THE AUTHORIZED ORGANIZATION THAT RENTED ITS PREMISES THEREFOR, SHALL
EACH FURNISH TO THE CLERK OR THE DEPARTMENT A STATEMENT SUBSCRIBED BY
THE MEMBER IN CHARGE AND AFFIRMED BY SUCH PERSON AS TRUE, UNDER THE
PENALTIES OF PERJURY, SHOWING THE AMOUNT OF THE GROSS RECEIPTS DERIVED
THEREFROM AND EACH ITEM OF EXPENSE INCURRED, OR PAID, AND EACH ITEM OF
EXPENDITURE MADE OR TO BE MADE, THE NAME AND ADDRESS OF EACH PERSON TO
WHOM EACH SUCH ITEM HAS BEEN PAID, OR IS TO BE PAID, WITH A DETAILED
DESCRIPTION OF THE MERCHANDISE PURCHASED OR THE SERVICES RENDERED THERE-
FOR, THE NET PROCEEDS DERIVED FROM SUCH GAME OR RENTAL, AS THE CASE MAY
BE, AND THE USE TO WHICH SUCH PROCEEDS HAVE BEEN OR ARE TO BE APPLIED
AND A LIST OF PRIZES OFFERED AND GIVEN, WITH THE RESPECTIVE VALUES THER-
EOF. A CLERK OR THE DEPARTMENT SHALL MAKE PROVISIONS FOR THE ELECTRONIC
FILING OF SUCH STATEMENT. IT SHALL BE THE DUTY OF EACH LICENSEE TO MAIN-
TAIN AND KEEP SUCH BOOKS AND RECORDS AS MAY BE NECESSARY TO SUBSTANTIATE
THE PARTICULARS OF EACH SUCH STATEMENT AND WITHIN FIFTEEN DAYS AFTER THE
END OF EACH CALENDAR QUARTER DURING WHICH THERE HAS BEEN ANY OCCASION OF
BINGO, A SUMMARY STATEMENT OF SUCH INFORMATION, IN FORM PRESCRIBED BY
THE COMMISSION, SHALL BE FURNISHED IN THE SAME MANNER TO THE COMMISSION.
2. UPON THE FILING OF SUCH STATEMENT OF RECEIPTS, THE AUTHORIZED
ORGANIZATION FURNISHING THE SAME SHALL PAY TO THE CLERK OF THE MUNICI-
PALITY AS AND FOR AN ADDITIONAL LICENSE FEE A SUM BASED UPON THE
REPORTED NET PROCEEDS, IF ANY, FOR THE OCCASION COVERED BY SUCH STATE-
MENT AND DETERMINED IN ACCORDANCE WITH SUCH SCHEDULE AS SHALL BE ESTAB-
LISHED FROM TIME TO TIME BY THE COMMISSION TO DEFRAY THE COST TO MUNICI-
PALITIES OF ADMINISTERING THE PROVISIONS OF THIS ARTICLE.
§ 1533. EXAMINATION OF BOOKS AND RECORDS; EXAMINATION OF MANAGERS,
ETC.; DISCLOSURE OF INFORMATION. 1. THE GOVERNING BODY OF THE MUNICI-
PALITY AND THE COMMISSION SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE
EXAMINED THE BOOKS AND RECORDS OF ANY:
(A) AUTHORIZED ORGANIZATION THAT IS OR HAS BEEN LICENSED TO CONDUCT
BINGO, SO FAR AS SUCH BOOKS AND RECORDS MAY RELATE TO BINGO, INCLUDING
THE MAINTENANCE, CONTROL AND DISPOSITION OF NET PROCEEDS DERIVED FROM
BINGO OR FROM THE USE OF ITS PREMISES FOR BINGO, AND TO EXAMINE ANY
MANAGER, OFFICER, DIRECTOR, AGENT, MEMBER OR EMPLOYEE THEREOF UNDER OATH
IN RELATION TO THE CONDUCT OF ANY SUCH GAME OF BINGO UNDER ANY SUCH
LICENSE, THE USE OF ITS PREMISES FOR BINGO, OR THE DISPOSITION OF NET
PROCEEDS DERIVED FROM BINGO, AS THE CASE MAY BE; AND
(B) LICENSED AUTHORIZED BINGO LESSOR SO FAR AS SUCH BOOKS AND RECORDS
MAY RELATE TO LEASING PREMISES FOR BINGO AND TO EXAMINE SAID LESSOR OR
ANY MANAGER, OFFICER, DIRECTOR, AGENT OR EMPLOYEE THEREOF UNDER OATH IN
RELATION TO SUCH LEASING.
2. ANY INFORMATION SO RECEIVED SHALL NOT BE DISCLOSED EXCEPT SO FAR AS
MAY BE NECESSARY FOR THE PURPOSE OF CARRYING OUT THE PROVISIONS OF THIS
ARTICLE.
S. 2009 125 A. 3009
§ 1534. APPEALS FROM MUNICIPAL GOVERNING BODY TO COMMISSION. ANY
APPLICANT FOR, OR HOLDER OF, ANY LICENSE ISSUED OR TO BE ISSUED UNDER
THIS TITLE AGGRIEVED BY ANY ACTION OF THE GOVERNING BODY OF THE MUNICI-
PALITY TO WHICH SUCH APPLICATION HAS BEEN MADE OR BY WHICH SUCH LICENSE
HAS BEEN ISSUED, MAY APPEAL TO THE COMMISSION FROM THE DETERMINATION OF
SAID GOVERNING BODY BY FILING WITH THE GOVERNING BODY A WRITTEN NOTICE
OF APPEAL WITHIN THIRTY DAYS AFTER THE DETERMINATION OR ACTION APPEALED
FROM. UPON THE HEARING OF SUCH APPEAL, THE EVIDENCE, IF ANY, TAKEN
BEFORE THE GOVERNING BODY AND ANY ADDITIONAL EVIDENCE MAY BE PRODUCED
AND SHALL BE CONSIDERED IN ARRIVING AT A DETERMINATION OF THE MATTERS IN
ISSUE. ACTION OF THE COMMISSION UPON SAID APPEAL SHALL BE BINDING UPON
SAID GOVERNING BODY AND ALL PARTIES TO SAID APPEAL.
§ 1535. EXEMPTION FROM PROSECUTION. NO PERSON OR CORPORATION LAWFULLY
CONDUCTING, OR PARTICIPATING IN THE CONDUCT OF BINGO OR PERMITTING THE
CONDUCT UPON ANY PREMISES OWNED OR LEASED BY HIM, HER OR IT UNDER ANY
LICENSE LAWFULLY ISSUED PURSUANT TO THIS TITLE, SHALL BE LIABLE TO PROS-
ECUTION OR CONVICTION FOR VIOLATION OF ANY PROVISION OF ARTICLE TWO
HUNDRED TWENTY-FIVE OF THE PENAL LAW OR ANY OTHER LAW OR ORDINANCE TO
THE EXTENT THAT SUCH CONDUCT IS SPECIFICALLY AUTHORIZED BY THIS TITLE,
BUT THIS IMMUNITY SHALL NOT EXTEND TO ANY PERSON OR CORPORATION KNOWING-
LY CONDUCTING OR PARTICIPATING IN THE CONDUCT OF BINGO UNDER ANY LICENSE
OBTAINED BY ANY FALSE PRETENSE OR BY ANY FALSE STATEMENT MADE IN ANY
APPLICATION FOR LICENSE OR OTHERWISE, OR PERMITTING THE CONDUCT UPON ANY
PREMISES OWNED OR LEASED BY HIM, HER OR IT OF ANY GAME OF BINGO
CONDUCTED UNDER ANY LICENSE KNOWN TO HIM, HER OR IT TO HAVE BEEN
OBTAINED BY ANY SUCH FALSE PRETENSE OR STATEMENT.
§ 1536. OFFENSES; FORFEITURE OF LICENSE; INELIGIBILITY TO APPLY FOR
LICENSE. ANY PERSON WHO, OR ASSOCIATION OR CORPORATION THAT:
1. MAKES ANY FALSE STATEMENT IN ANY APPLICATION FOR ANY LICENSE
AUTHORIZED TO BE ISSUED UNDER THIS TITLE;
2. PAYS OR RECEIVES, FOR THE USE OF ANY PREMISES FOR CONDUCTING BINGO,
A RENTAL IN EXCESS OF THE AMOUNT SPECIFIED AS THE PERMISSIBLE RENT IN
THE LICENSE PROVIDED FOR IN SUBDIVISION TWO OF SECTION FIFTEEN HUNDRED
TWENTY-FOUR OF THIS TITLE;
3. FAILS TO KEEP BOOKS AND RECORDS THAT FULLY AND TRULY RECORD ALL
TRANSACTIONS CONNECTED WITH THE CONDUCTING OF BINGO OR THE LEASING OF
PREMISES TO BE USED FOR THE CONDUCT OF BINGO;
4. FALSIFIES OR MAKES ANY FALSE ENTRY IN ANY BOOKS OR RECORDS SO FAR
AS SUCH BOOKS OR RECORDS RELATE IN ANY MANNER TO THE CONDUCT OF BINGO,
TO THE DISPOSITION OF THE PROCEEDS THEREOF AND TO THE APPLICATION OF THE
RENTS RECEIVED BY ANY AUTHORIZED ORGANIZATION;
5. DIVERTS OR PAYS ANY PORTION OF THE NET PROCEEDS OF ANY GAME OF
BINGO TO ANY PERSON, ASSOCIATION OR CORPORATION, EXCEPT IN FURTHERANCE
OF ONE OR MORE OF THE LAWFUL PURPOSES DEFINED IN THIS TITLE; OR
6. VIOLATES ANY OF THE PROVISIONS OF THIS TITLE OR OF ANY TERM OF ANY
LICENSE ISSUED UNDER THIS TITLE; SHALL BE GUILTY OF A MISDEMEANOR AND
SHALL FORFEIT ANY LICENSE ISSUED UNDER THIS TITLE AND BE INELIGIBLE TO
APPLY FOR A LICENSE UNDER THIS TITLE FOR ONE YEAR THEREAFTER.
§ 1537. UNLAWFUL BINGO. 1. FOR THE PURPOSES OF THIS SECTION, BINGO
SHALL INCLUDE A GAME OF BINGO WHETHER OR NOT A PERSON WHO PARTICIPATES
AS A PLAYER FURNISHES SOMETHING OF VALUE FOR THE OPPORTUNITY TO PARTIC-
IPATE.
2. ANY PERSON, FIRM, PARTNERSHIP, ASSOCIATION, CORPORATION OR ORGAN-
IZATION HOLDING, OPERATING OR CONDUCTING BINGO IS GUILTY OF A MISDEMEA-
NOR, EXCEPT WHEN OPERATING, HOLDING OR CONDUCTING:
S. 2009 126 A. 3009
(A) IN ACCORDANCE WITH A VALID LICENSE ISSUED PURSUANT TO THIS TITLE;
OR
(B) WITHIN A MUNICIPALITY THAT HAS AUTHORIZED THE CONDUCT OF BINGO
GAMES BY AUTHORIZED ORGANIZATIONS:
(1) WITHIN THE CONFINES OF A HOME FOR PURPOSES OF AMUSEMENT OR RECRE-
ATION WHERE NO PLAYER OR OTHER PERSON FURNISHES ANYTHING OF VALUE FOR
THE OPPORTUNITY TO PARTICIPATE AND THE PRIZES AWARDED OR TO BE AWARDED
ARE NOMINAL.
(2) WITHIN ANY APARTMENT, CONDOMINIUM OR COOPERATIVE COMPLEX, RETIRE-
MENT COMMUNITY, OR OTHER GROUP RESIDENTIAL COMPLEX OR FACILITY WHERE:
(I) SPONSORED BY THE OPERATOR OF OR AN ASSOCIATION RELATED TO SUCH
COMPLEX, COMMUNITY OR FACILITY;
(II) SUCH GAMES ARE CONDUCTED SOLELY FOR THE PURPOSE OF AMUSEMENT AND
RECREATION OF ITS RESIDENTS;
(III) NO PLAYER OR OTHER PERSON FURNISHES ANYTHING OF VALUE FOR THE
OPPORTUNITY TO PARTICIPATE;
(IV) THE VALUE OF THE PRIZES DO NOT EXCEED TEN DOLLARS FOR ANY ONE
GAME OR A TOTAL OF ONE HUNDRED FIFTY DOLLARS IN ANY CALENDAR DAY;
(V) SUCH GAMES ARE NOT CONDUCTED ON MORE THAN FIFTEEN DAYS DURING ANY
CALENDAR YEAR; AND
(VI) NO PERSON OTHER THAN AN EMPLOYEE OR VOLUNTEER OF SUCH COMPLEX,
COMMUNITY OR FACILITY CONDUCTS OR ASSISTS IN CONDUCTING THE GAME OR
GAMES.
(3) ON BEHALF OF ANY BONA FIDE SOCIAL, CHARITABLE, EDUCATIONAL, RECRE-
ATIONAL, FRATERNAL OR AGE-GROUP ORGANIZATION, CLUB OR ASSOCIATION SOLELY
FOR THE PURPOSE OF AMUSEMENT AND RECREATION OF ITS MEMBERS OR BENEFICI-
ARIES WHERE:
(I) NO PLAYER OR OTHER PERSON FURNISHES ANYTHING OF VALUE FOR THE
OPPORTUNITY TO PARTICIPATE;
(II) THE VALUE OF THE PRIZES DO NOT EXCEED TEN DOLLARS FOR ANY ONE
GAME OR A TOTAL OF ONE HUNDRED FIFTY DOLLARS IN ANY CALENDAR DAY;
(III) SUCH GAMES ARE NOT CONDUCTED ON MORE THAN FIFTEEN DAYS DURING
ANY CALENDAR YEAR;
(IV) NO PERSON OTHER THAN A BONA FIDE ACTIVE MEMBER OF THE ORGANIZA-
TION, CLUB OR ASSOCIATION PARTICIPATES IN THE CONDUCT OF THE GAMES; AND
(V) NO PERSON IS PAID FOR CONDUCTING OR ASSISTING IN THE CONDUCT OF
THE GAME OR GAMES.
(4) AS A HOTEL'S, MOTEL'S, RECREATIONAL OR ENTERTAINMENT FACILITY'S OR
COMMON CARRIER'S SOCIAL ACTIVITY SOLELY FOR THE PURPOSE OF AMUSEMENT AND
RECREATION OF ITS PATRONS WHERE:
(I) NO PLAYER OR OTHER PERSON FURNISHES ANYTHING OF VALUE FOR THE
OPPORTUNITY TO PARTICIPATE;
(II) THE VALUE OF THE PRIZES DO NOT EXCEED TEN DOLLARS FOR ANY ONE
GAME OR A TOTAL OF ONE HUNDRED FIFTY DOLLARS IN ANY CALENDAR DAY;
(III) SUCH GAMES ARE NOT CONDUCTED ON MORE THAN FIFTEEN DAYS DURING
ANY CALENDAR YEAR;
(IV) NO PERSON OTHER THAN AN EMPLOYEE OR VOLUNTEER CONDUCTS OR ASSISTS
IN CONDUCTING THE GAME OR GAMES; AND
(V) THE GAME OR GAMES ARE NOT CONDUCTED IN THE SAME ROOM WHERE ALCO-
HOLIC BEVERAGES ARE SOLD.
(5) THE COMMISSION AND THE GOVERNING BODY OF THE MUNICIPALITY IN WHICH
BINGO GAMES ARE CONDUCTED PURSUANT TO PARAGRAPH (B) OF SUBDIVISION TWO
OF THIS SECTION SHALL HAVE THE AUTHORITY TO REGULATE THE CONDUCT OF SUCH
GAMES. ANY BINGO GAME OR GAMES, IN WHICH NO PARTICIPANT OR OTHER PERSON
FURNISHES ANYTHING OF VALUE FOR THE OPPORTUNITY TO PARTICIPATE, THAT IS
OR ARE OPERATED IN VIOLATION OF PARAGRAPH (B) OF SUBDIVISION TWO OF THIS
S. 2009 127 A. 3009
SECTION, A CIVIL PENALTY OF NOT MORE THAN ONE HUNDRED DOLLARS MAY BE
IMPOSED FOR THE FIRST SUCH VIOLATION, A CIVIL PENALTY OF NOT MORE THAN
ONE HUNDRED FIFTY DOLLARS MAY BE IMPOSED FOR THE SECOND SUCH VIOLATION
IN A PERIOD OF THREE YEARS AND A CIVIL PENALTY OF NOT MORE THAN TWO
HUNDRED DOLLARS MAY BE IMPOSED FOR THE THIRD OR SUBSEQUENT SUCH
VIOLATION IN A PERIOD OF FIVE YEARS.
3. THE PROVISIONS OF THIS SECTION SHALL APPLY TO ALL MUNICIPALITIES
WITHIN THIS STATE, INCLUDING THOSE MUNICIPALITIES WHERE THIS TITLE IS
INOPERATIVE.
§ 1538. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS. EXCEPT AS PROVIDED
IN SECTION FIFTEEN HUNDRED FORTY, THE PROVISIONS OF THIS TITLE SHALL
REMAIN INOPERATIVE IN ANY MUNICIPALITY UNLESS AND UNTIL A PROPOSITION
THEREFOR SUBMITTED AT A GENERAL OR SPECIAL ELECTION IN SUCH MUNICIPALITY
IS APPROVED BY A VOTE OF THE MAJORITY OF THE QUALIFIED ELECTORS IN SUCH
MUNICIPALITY VOTING THEREON.
§ 1539. AMENDMENT AND REPEAL OF LOCAL LAWS AND ORDINANCES. 1. ANY
LOCAL LAW OR ORDINANCE CONCERNING BINGO MAY BE AMENDED, FROM TIME TO
TIME, OR REPEALED BY THE COMMON COUNCIL OR OTHER LOCAL LEGISLATIVE BODY
OF THE MUNICIPALITY THAT ENACTED IT AND SUCH AMENDMENT OR REPEAL, AS THE
CASE MAY BE, MAY BE MADE EFFECTIVE AND OPERATIVE NOT EARLIER THAN THIRTY
DAYS FOLLOWING THE EFFECTIVE DATE OF THE LOCAL LAW OR ORDINANCE EFFECT-
ING SUCH AMENDMENT OR REPEAL, AS THE CASE MAY BE.
2. THE APPROVAL OF A MAJORITY OF THE ELECTORS OF SUCH MUNICIPALITY
SHALL NOT BE A CONDITION PREREQUISITE TO THE TAKING EFFECT OF SUCH LOCAL
LAW OR ORDINANCE.
§ 1540. DELEGATION OF AUTHORITY. THE GOVERNING BODY OF A MUNICIPALITY
MAY DELEGATE TO A MUNICIPAL OFFICER OR OFFICERS DESIGNATED BY SUCH MUNI-
CIPALITY FOR THAT PURPOSE ANY OF THE AUTHORITY GRANTED TO IT HEREBY IN
RELATION TO THE ISSUANCE, AMENDMENT AND CANCELLATION OF LICENSES, THE
CONDUCT OF INVESTIGATIONS AND HEARINGS, THE SUPERVISION OF THE OPERATION
OF THE GAMES AND THE COLLECTION AND TRANSMISSION OF FEES.
§ 1541. POWERS AND DUTIES OF MAYORS OR MANAGERS OF CERTAIN CITIES.
NOTWITHSTANDING ANY OTHER PROVISION OF THIS TITLE, WHENEVER THE CHARTER
OF ANY CITY, OR ANY SPECIAL OR LOCAL LAW, PROVIDES THAT THE MAYOR OR
MANAGER OF SUCH CITY IS THE CHIEF LAW ENFORCEMENT OFFICER THEREOF, THEN
AND IN THAT EVENT SUCH MAYOR OR MANAGER, AS THE CASE MAY BE, SHALL HAVE,
EXERCISE AND PERFORM ALL THE POWERS AND DUTIES OTHERWISE PRESCRIBED BY
THIS TITLE TO BE EXERCISED AND PERFORMED BY THE GOVERNING BODY OF SUCH
CITY EXCEPT THOSE PRESCRIBED BY SECTION FIFTEEN HUNDRED TWENTY-TWO OF
THIS TITLE, AND IN ANY SUCH CASE, THE TERM "GOVERNING BODY OF A MUNICI-
PALITY" AS USED IN THIS TITLE SHALL BE DEEMED TO MEAN AND INCLUDE THE
MAYOR OR MANAGER OF ANY SUCH CITY.
TITLE 4
LOCAL OPTION FOR CONDUCT OF GAMES OF CHANCE BY CERTAIN
ORGANIZATIONS
SECTION 1550. SHORT TITLE; PURPOSE OF TITLE.
1551. LOCAL OPTION.
1552. LOCAL LAWS AND ORDINANCES.
1553. POWERS AND DUTIES OF THE COMMISSION.
1554. RESTRICTIONS UPON CONDUCT OF GAMES OF CHANCE.
1555. AUTHORIZED SUPPLIER OF GAMES OF CHANCE EQUIPMENT.
1556. DECLARATION OF STATE'S EXEMPTION FROM OPERATION OF
PROVISIONS OF 15 U.S.C. § 1172.
1557. LEGAL SHIPMENTS OF GAMING DEVICES INTO NEW YORK STATE.
1558. APPLICATION FOR LICENSE.
1559. RAFFLES; LICENSE NOT REQUIRED.
S. 2009 128 A. 3009
1560. INVESTIGATION; MATTERS TO BE DETERMINED; ISSUANCE OF
LICENSE; FEES; DURATION OF LICENSE.
1561. HEARING; AMENDMENT OF LICENSE.
1562. FORM AND CONTENTS OF LICENSE; DISPLAY OF LICENSE.
1563. CONTROL AND SUPERVISION; SUSPENSION OF IDENTIFICATION
NUMBERS AND LICENSES; INSPECTIONS OF PREMISES.
1564. FREQUENCY OF GAMES.
1565. PERSONS OPERATING GAMES; EQUIPMENT; EXPENSES; COMPEN-
SATION.
1566. CHARGE FOR ADMISSION AND PARTICIPATION; AMOUNT OF PRIZES;
AWARD OF PRIZES.
1567. STATEMENT OF RECEIPTS AND EXPENSES; ADDITIONAL LICENSE
FEES.
1568. EXAMINATION OF BOOKS AND RECORDS; EXAMINATION OF OFFICERS
AND EMPLOYEES; DISCLOSURE OF INFORMATION.
1569. APPEALS FOR THE DECISION OF A MUNICIPAL OFFICER, CLERK OR
DEPARTMENT TO THE COMMISSION.
1570. EXEMPTION FROM PROSECUTION.
1571. OFFENSES; FORFEITURE OF LICENSE; INELIGIBILITY TO APPLY
FOR LICENSE.
1572. UNLAWFUL GAMES OF CHANCE.
1573. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS.
1574. AMENDMENT AND REPEAL OF LOCAL LAWS AND ORDINANCES.
1575. MANUFACTURERS OF BELL JARS; REPORTS AND RECORDS.
1576. DISTRIBUTOR OF BELL JARS; REPORTS AND RECORDS.
1577. TRANSFER RESTRICTIONS.
1578. BELL JARS COMPLIANCE AND ENFORCEMENT.
§ 1550. SHORT TITLE; PURPOSE OF TITLE. THIS TITLE SHALL BE KNOWN AND
MAY BE CITED AS THE GAMES OF CHANCE LICENSING LAW. THE LEGISLATURE HERE-
BY DECLARES THAT THE RAISING OF FUNDS FOR THE PROMOTION OF BONA FIDE
CHARITABLE, EDUCATIONAL, SCIENTIFIC, HEALTH, RELIGIOUS AND PATRIOTIC
CAUSES AND UNDERTAKINGS, WHERE THE BENEFICIARIES ARE UNDETERMINED, IS IN
THE PUBLIC INTEREST. THE LEGISLATURE HEREBY FINDS THAT, AS CONDUCTED
PRIOR TO THE EFFECTIVE DATE OF THIS TITLE, GAMES OF CHANCE WERE THE
SUBJECT OF EXPLOITATION BY PROFESSIONAL GAMBLERS, PROMOTERS AND COMMER-
CIAL INTERESTS. IT IS HEREBY DECLARED TO BE THE POLICY OF THE LEGISLA-
TURE THAT ALL PHASES OF THE SUPERVISION, LICENSING AND REGULATION OF
GAMES OF CHANCE AND OF THE CONDUCT OF GAMES OF CHANCE SHOULD BE CLOSELY
CONTROLLED AND THAT THE LAWS AND REGULATIONS PERTAINING THERETO SHOULD
BE STRICTLY CONSTRUED AND RIGIDLY ENFORCED; THAT THE CONDUCT OF THE GAME
AND ALL ATTENDANT ACTIVITIES SHOULD BE SO REGULATED AND ADEQUATE
CONTROLS SO INSTITUTED AS TO DISCOURAGE COMMERCIALIZATION OF GAMBLING IN
ALL ITS FORMS, INCLUDING THE RENTAL OF COMMERCIAL PREMISES FOR GAMES OF
CHANCE, AND TO ENSURE A MAXIMUM AVAILABILITY OF THE NET PROCEEDS OF
GAMES OF CHANCE EXCLUSIVELY FOR APPLICATION TO THE WORTHY CAUSES AND
UNDERTAKINGS SPECIFIED HEREIN; THAT THE ONLY JUSTIFICATION FOR THIS
TITLE IS TO FOSTER AND SUPPORT SUCH WORTHY CAUSES AND UNDERTAKINGS, AND
THAT THE MANDATE OF SUBDIVISION TWO OF SECTION NINE OF ARTICLE ONE OF
THE STATE CONSTITUTION, AS AMENDED, SHOULD BE CARRIED OUT BY RIGID REGU-
LATIONS TO PREVENT COMMERCIALIZED GAMBLING, PREVENT PARTICIPATION BY
CRIMINAL AND OTHER UNDESIRABLE ELEMENTS AND PREVENT THE DIVERSION OF
FUNDS FROM THE PURPOSES HEREIN AUTHORIZED.
§ 1551. LOCAL OPTION. SUBJECT TO THE PROVISIONS OF THIS TITLE, AND
PURSUANT TO THE DIRECTION CONTAINED IN SUBDIVISION TWO OF SECTION NINE
OF ARTICLE ONE OF THE STATE CONSTITUTION, THE LEGISLATURE HEREBY GIVES
AND GRANTS TO EVERY MUNICIPALITY THE RIGHT, POWER AND AUTHORITY TO
S. 2009 129 A. 3009
AUTHORIZE THE CONDUCT OF GAMES OF CHANCE BY AUTHORIZED ORGANIZATIONS
WITHIN THE TERRITORIAL LIMITS OF SUCH MUNICIPALITY. A LOCAL LAW OR ORDI-
NANCE ADOPTED BY A TOWN SHALL BE OPERATIVE IN ANY VILLAGE OR WITHIN ANY
PART OF ANY VILLAGE LOCATED WITHIN SUCH TOWN IF, AFTER ADOPTION OF SUCH
LOCAL LAW OR ORDINANCE, THE BOARD OF TRUSTEES OF SUCH VILLAGE ADOPTS A
LOCAL LAW OR RESOLUTION SUBJECT TO A PERMISSIVE REFERENDUM AS PROVIDED
IN ARTICLE NINE OF THE VILLAGE LAW AUTHORIZING THE ISSUANCE OF LICENSES
BY THE TOWN FOR GAMES OF CHANCE WITHIN SUCH VILLAGE. SUCH LOCAL LAW OR
RESOLUTION MAY BE REPEALED ONLY BY A LOCAL LAW OR RESOLUTION THAT SHALL
ALSO BE SUBJECT TO A PERMISSIVE REFERENDUM, OR BY ENACTMENT OF A LOCAL
LAW AUTHORIZING GAMES OF CHANCE AS PROVIDED IN SECTION FIFTEEN HUNDRED
FIFTY-TWO OF THIS TITLE.
§ 1552. LOCAL LAWS AND ORDINANCES. 1. THE COMMON COUNCIL OR OTHER
LOCAL LEGISLATIVE BODY OF ANY MUNICIPALITY MAY, EITHER BY LOCAL LAW OR
ORDINANCE, PROVIDE THAT IT SHALL BE LAWFUL FOR ANY AUTHORIZED ORGANIZA-
TION, UPON OBTAINING A LICENSE THEREFOR AS HEREINAFTER PROVIDED, TO
CONDUCT GAMES OF CHANCE WITHIN THE TERRITORIAL LIMITS OF SUCH MUNICI-
PALITY, SUBJECT TO THE PROVISIONS OF SUCH LOCAL LAW OR ORDINANCE, THE
PROVISIONS OF THIS TITLE AND THE PROVISIONS SET FORTH BY THE COMMISSION.
2. NO SUCH LOCAL LAW OR ORDINANCE SHALL BECOME OPERATIVE OR EFFECTIVE
UNLESS AND UNTIL IT SHALL HAVE BEEN APPROVED BY A MAJORITY OF THE ELEC-
TORS VOTING ON A PROPOSITION SUBMITTED AT A GENERAL OR SPECIAL ELECTION
HELD WITHIN SUCH MUNICIPALITY WHO ARE QUALIFIED TO VOTE FOR OFFICERS OF
SUCH MUNICIPALITY.
3. THE TIME, METHOD AND MANNER OF SUBMISSION, PREPARATION AND
PROVISION OF BALLOTS AND BALLOT LABELS, BALLOTING BY VOTING MACHINE AND
CONDUCTING THE ELECTION, CANVASSING THE RESULT AND MAKING AND FILING THE
RETURNS AND ALL OTHER PROCEDURE WITH REFERENCE TO THE SUBMISSION OF AND
ACTION UPON ANY PROPOSITION FOR THE APPROVAL OF ANY SUCH LOCAL LAW OR
ORDINANCE SHALL BE THE SAME AS IN THE CASE OF ANY OTHER PROPOSITION TO
BE SUBMITTED TO THE ELECTORS OF SUCH MUNICIPALITY AT A GENERAL OR
SPECIAL ELECTION IN SUCH MUNICIPALITY, AS PROVIDED BY LAW.
§ 1553. POWERS AND DUTIES OF THE COMMISSION. THE COMMISSION SHALL HAVE
THE POWER AND IT SHALL BE THE DUTY OF THE COMMISSION TO:
1. SUPERVISE THE ADMINISTRATION OF THE GAMES OF CHANCE LICENSING LAW
AND TO ADOPT, AMEND AND REPEAL RULES AND REGULATIONS GOVERNING THE ISSU-
ANCE AND AMENDMENT OF LICENSES THEREUNDER AND THE CONDUCTING OF GAMES
UNDER SUCH LICENSES, WHICH RULES AND REGULATIONS SHALL HAVE THE FORCE
AND EFFECT OF LAW AND SHALL BE BINDING UPON ALL MUNICIPALITIES ISSUING
LICENSES, AND UPON LICENSEES OF THE COMMISSION, TO THE END THAT SUCH
LICENSES SHALL BE ISSUED TO QUALIFIED LICENSEES ONLY, AND THAT SAID
GAMES SHALL BE FAIRLY AND PROPERLY CONDUCTED FOR THE PURPOSES AND IN THE
MANNER OF THE SAID GAMES OF CHANCE LICENSING LAW PRESCRIBED AND TO
PREVENT THE GAMES OF CHANCE THEREBY AUTHORIZED TO BE CONDUCTED FROM
BEING CONDUCTED FOR COMMERCIAL PURPOSES OR PURPOSES OTHER THAN THOSE
THEREIN AUTHORIZED, PARTICIPATED IN BY CRIMINAL OR OTHER UNDESIRABLE
ELEMENTS AND THE FUNDS DERIVED FROM THE GAMES BEING DIVERTED FROM THE
PURPOSES AUTHORIZED, AND TO PROVIDE UNIFORMITY IN THE ADMINISTRATION OF
SAID LAW THROUGHOUT THE STATE, THE COMMISSION SHALL PRESCRIBE FORMS OF
APPLICATION FOR LICENSES, LICENSEES, AMENDMENT OF LICENSES, REPORTS OF
THE CONDUCT OF GAMES AND OTHER MATTERS INCIDENT TO THE ADMINISTRATION OF
SUCH LAW.
2. CONDUCT, ANYWHERE IN THE STATE, INVESTIGATIONS OF THE ADMINIS-
TRATION, ENFORCEMENT AND POTENTIAL OR ACTUAL VIOLATIONS OF THE GAMES OF
CHANCE LICENSING LAW AND OF THE RULES AND REGULATIONS OF THE COMMISSION.
S. 2009 130 A. 3009
3. REVIEW ALL DETERMINATIONS AND ACTIONS OF THE CLERK OR DEPARTMENT IN
ISSUING AN INITIAL LICENSE AND IT MAY REVIEW THE ISSUANCE OF SUBSEQUENT
LICENSES AND, AFTER HEARING, REVOKE THOSE LICENSES THAT DO NOT IN ALL
RESPECTS MEET THE REQUIREMENTS OF THIS TITLE AND THE RULES AND REGU-
LATIONS OF THE COMMISSION.
4. SUSPEND OR REVOKE A LICENSE, AFTER HEARING, FOR ANY VIOLATION OF
THE PROVISIONS OF THIS TITLE OR THE RULES AND REGULATIONS OF THE COMMIS-
SION.
5. HEAR APPEALS FROM THE DETERMINATIONS AND ACTION OF THE CLERK,
DEPARTMENT OR MUNICIPAL OFFICER IN CONNECTION WITH THE REFUSING TO ISSUE
LICENSES, THE SUSPENSION AND REVOCATION OF LICENSES AND THE IMPOSITION
OF FINES IN THE MANNER PRESCRIBED BY LAW AND THE ACTION AND DETERMI-
NATION OF THE COMMISSION UPON ANY SUCH APPEAL SHALL BE BINDING UPON THE
CLERK, DEPARTMENT OR MUNICIPAL OFFICER AND ALL PARTIES THERETO.
6. CARRY ON CONTINUOUS STUDY OF THE OPERATION OF THE GAMES OF CHANCE
LICENSING LAW TO ASCERTAIN FROM TIME TO TIME DEFECTS THEREIN JEOPARDIZ-
ING OR THREATENING TO JEOPARDIZE THE PURPOSES OF THIS TITLE, AND TO
FORMULATE AND RECOMMEND CHANGES IN SUCH LAW AND IN OTHER LAWS OF THE
STATE THAT THE COMMISSION MAY DETERMINE TO BE NECESSARY FOR THE REALIZA-
TION OF SUCH PURPOSES, AND TO THE SAME END TO MAKE A CONTINUOUS STUDY OF
THE OPERATION AND ADMINISTRATION OF SIMILAR LAWS THAT MAY BE IN EFFECT
IN OTHER STATES OF THE UNITED STATES.
7. SUPERVISE THE DISPOSITION OF ALL FUNDS DERIVED FROM THE CONDUCT OF
GAMES OF CHANCE BY AUTHORIZED ORGANIZATIONS NOT CURRENTLY LICENSED TO
CONDUCT SUCH GAMES.
8. ISSUE AN IDENTIFICATION NUMBER TO AN APPLICANT AUTHORIZED ORGANIZA-
TION IF THE COMMISSION DETERMINES THAT THE APPLICANT SATISFIES THE
REQUIREMENTS OF THE GAMES OF CHANCE LICENSING LAW AND THE RULES AND
REGULATIONS OF THE COMMISSION.
9. APPROVE AND ESTABLISH A STANDARD SET OF GAMES OF CHANCE EQUIPMENT
AND BY RULES AND REGULATIONS PRESCRIBE THE MANNER IN WHICH SUCH EQUIP-
MENT IS TO BE REPRODUCED AND DISTRIBUTED TO LICENSED AUTHORIZED ORGAN-
IZATIONS. THE SALE OR DISTRIBUTION TO A LICENSED AUTHORIZED ORGANIZATION
OF ANY EQUIPMENT OTHER THAN THAT CONTAINED IN THE STANDARD SET OF GAMES
OF CHANCE EQUIPMENT SHALL CONSTITUTE A VIOLATION OF THIS SECTION.
§ 1554. RESTRICTIONS UPON CONDUCT OF GAMES OF CHANCE. THE CONDUCT OF
GAMES OF CHANCE AUTHORIZED BY LOCAL LAW OR ORDINANCE SHALL BE SUBJECT TO
THE FOLLOWING RESTRICTIONS WITHOUT REGARD TO WHETHER THE RESTRICTIONS
ARE CONTAINED IN SUCH LOCAL LAW OR ORDINANCE, BUT NOTHING HEREIN SHALL
BE CONSTRUED TO PREVENT THE INCLUSION WITHIN SUCH LOCAL LAW OR ORDINANCE
OF OTHER PROVISIONS IMPOSING ADDITIONAL RESTRICTIONS UPON THE CONDUCT OF
SUCH GAMES:
1. NO PERSON, FIRM, PARTNERSHIP, CORPORATION OR ORGANIZATION, OTHER
THAN A LICENSEE UNDER THE PROVISIONS OF SECTION FIFTEEN HUNDRED SIXTY OF
THIS TITLE, SHALL
(A) CONDUCT SUCH GAME; OR
(B) LEASE OR OTHERWISE MAKE AVAILABLE FOR CONDUCTING GAMES OF CHANCE
PREMISES FOR ANY CONSIDERATION WHATSOEVER, DIRECT OR INDIRECT, WITHOUT
OBTAINING THE PRIOR WRITTEN APPROVAL OF THE COMMISSION.
2. NO GAME OF CHANCE SHALL BE HELD, OPERATED OR CONDUCTED ON OR WITHIN
ANY LEASED PREMISES IF RENTAL UNDER SUCH LEASE IS TO BE PAID, WHOLLY OR
PARTLY, ON THE BASIS OF A PERCENTAGE OF THE RECEIPTS OR NET PROFITS
DERIVED FROM THE OPERATION OF SUCH GAME.
3. NO AUTHORIZED ORGANIZATION LICENSED UNDER THE PROVISIONS OF THIS
TITLE SHALL PURCHASE, LEASE, OR RECEIVE ANY SUPPLIES OR EQUIPMENT
SPECIFICALLY DESIGNED OR ADAPTED FOR USE IN THE CONDUCT OF GAMES OF
S. 2009 131 A. 3009
CHANCE FROM OTHER THAN A SUPPLIER LICENSED BY THE COMMISSION OR FROM
ANOTHER AUTHORIZED ORGANIZATION. LEASE TERMS AND CONDITIONS SHALL BE
SUBJECT TO RULES AND REGULATIONS OF THE COMMISSION. THE PROVISIONS OF
THIS TITLE SHALL NOT BE CONSTRUED TO AUTHORIZE OR PERMIT AN AUTHORIZED
ORGANIZATION TO ENGAGE IN THE BUSINESS OF LEASING GAMES OF CHANCE,
SUPPLIES OR EQUIPMENT. NO ORGANIZATION SHALL PURCHASE BELL JAR TICKETS,
OR DEALS OF BELL JAR TICKETS, FROM ANY OTHER PERSON OR ORGANIZATION
OTHER THAN THOSE SPECIFICALLY AUTHORIZED UNDER SECTION FIFTEEN HUNDRED
SEVENTY-SIX OF THIS TITLE.
4. THE ENTIRE NET PROCEEDS OF ANY GAME OF CHANCE SHALL BE DEVOTED
EXCLUSIVELY TO THE LAWFUL PURPOSES OF THE ORGANIZATION PERMITTED TO
CONDUCT THE SAME AND THE NET PROCEEDS OF ANY RENTAL DERIVED THEREFROM
SHALL BE DEVOTED EXCLUSIVELY TO THE LAWFUL PURPOSES OF THE AUTHORIZED
GAMES OF CHANCE LESSOR.
5. (A) NO SINGLE PRIZE AWARDED BY GAMES OF CHANCE OTHER THAN RAFFLE
SHALL EXCEED THE SUM OR VALUE OF THREE HUNDRED DOLLARS, EXCEPT THAT FOR
MERCHANDISE WHEELS, NO SINGLE PRIZE SHALL EXCEED THE SUM OR VALUE OF TWO
HUNDRED FIFTY DOLLARS, AND FOR BELL JAR, NO SINGLE PRIZE SHALL EXCEED
THE SUM OR VALUE OF ONE THOUSAND DOLLARS.
(B) NO SINGLE PRIZE AWARDED BY RAFFLE SHALL EXCEED THE SUM OR VALUE OF
THREE HUNDRED THOUSAND DOLLARS.
(C) NO SINGLE WAGER SHALL EXCEED SIX DOLLARS AND FOR BELL JARS, COIN
BOARDS OR MERCHANDISE BOARDS, NO SINGLE PRIZE SHALL EXCEED ONE THOUSAND
DOLLARS, PROVIDED, HOWEVER, THAT SUCH LIMITATION SHALL NOT APPLY TO THE
AMOUNT OF MONEY OR VALUE PAID BY THE PARTICIPANT IN A RAFFLE IN RETURN
FOR A TICKET OR OTHER RECEIPT.
(D) FOR COIN BOARDS AND MERCHANDISE BOARDS, THE VALUE OF A PRIZE SHALL
BE DETERMINED BY THE COST OF SUCH PRIZE TO THE AUTHORIZED ORGANIZATION
OR, IF DONATED, THE FAIR MARKET VALUE OF SUCH PRIZE.
6. (A) NO AUTHORIZED ORGANIZATION SHALL AWARD A SERIES OF PRIZES
CONSISTING OF CASH OR OF MERCHANDISE WITH AN AGGREGATE VALUE IN EXCESS
OF:
(1) TEN THOUSAND DOLLARS DURING THE SUCCESSIVE OPERATIONS OF ANY ONE
MERCHANDISE WHEEL; AND
(2) SIX THOUSAND DOLLARS DURING THE SUCCESSIVE OPERATIONS OF ANY BELL
JAR, COIN BOARD OR MERCHANDISE BOARD.
(B) NO SERIES OF PRIZES AWARDED BY RAFFLE SHALL HAVE AN AGGREGATE
VALUE IN EXCESS OF FIVE HUNDRED THOUSAND DOLLARS.
(C) FOR COIN BOARDS AND MERCHANDISE BOARDS, THE VALUE OF A PRIZE SHALL
BE DETERMINED BY ITS COST TO THE AUTHORIZED ORGANIZATION OR, IF DONATED,
ITS FAIR MARKET VALUE.
7. IN ADDITION TO MERCHANDISE WHEELS, RAFFLES AND BELL JARS, NO MORE
THAN FIVE OTHER SINGLE TYPES OF GAMES OF CHANCE SHALL BE CONDUCTED
DURING ANY ONE LICENSE PERIOD.
8. (A) EXCEPT FOR MERCHANDISE WHEELS AND RAFFLES, NO SERIES OF PRIZES
ON ANY ONE OCCASION SHALL AGGREGATE MORE THAN FOUR HUNDRED DOLLARS WHEN
THE LICENSED AUTHORIZED ORGANIZATION CONDUCTS FIVE SINGLE TYPES OF GAMES
OF CHANCE DURING ANY ONE LICENSE PERIOD. EXCEPT FOR MERCHANDISE WHEELS,
RAFFLES AND BELL JARS, NO SERIES OF PRIZES ON ANY ONE OCCASION SHALL
AGGREGATE MORE THAN FIVE HUNDRED DOLLARS WHEN THE LICENSED AUTHORIZED
ORGANIZATION CONDUCTS FEWER THAN FIVE SINGLE TYPES OF GAMES OF CHANCE,
EXCLUSIVE OF MERCHANDISE WHEELS, RAFFLES AND BELL JARS, DURING ANY ONE
LICENSE PERIOD.
(B) NO AUTHORIZED ORGANIZATION SHALL AWARD BY RAFFLE PRIZES WITH AN
AGGREGATE VALUE IN EXCESS OF THREE MILLION DOLLARS DURING ANY ONE
LICENSE PERIOD.
S. 2009 132 A. 3009
9. EXCEPT FOR THE LIMITATIONS ON THE SUM OR VALUE FOR SINGLE PRIZES
AND SERIES OF PRIZES, NO LIMIT SHALL BE IMPOSED ON THE SUM OR VALUE OF
PRIZES AWARDED TO ANY ONE PARTICIPANT DURING ANY OCCASION OR ANY LICENSE
PERIOD.
10. (A) NO PERSON EXCEPT A BONA FIDE MEMBER OF THE LICENSED AUTHORIZED
ORGANIZATION SHALL PARTICIPATE IN THE MANAGEMENT OF SUCH GAMES.
(B) NO PERSON EXCEPT A BONA FIDE MEMBER OF THE LICENSED AUTHORIZED
ORGANIZATION, ITS AUXILIARY OR AFFILIATED ORGANIZATION, SHALL PARTIC-
IPATE IN THE OPERATION OF SUCH GAME, AS SET FORTH IN SECTION FIFTEEN
HUNDRED SIXTY-FIVE OF THIS TITLE.
11. NO PERSON SHALL RECEIVE ANY REMUNERATION FOR PARTICIPATING IN THE
MANAGEMENT OR OPERATION OF ANY SUCH GAME.
12. NO AUTHORIZED ORGANIZATION SHALL EXTEND CREDIT TO A PERSON TO
PARTICIPATE IN PLAYING A GAME OF CHANCE.
13. (A) NO GAME OF CHANCE, OTHER THAN A RAFFLE THAT COMPLIES WITH
PARAGRAPH (B) OF THIS SUBDIVISION, SHALL BE CONDUCTED ON OTHER THAN THE
PREMISES OF AN AUTHORIZED ORGANIZATION OR AN AUTHORIZED GAMES OF CHANCE
LESSOR.
(B) RAFFLE TICKETS MAY BE SOLD TO THE PUBLIC OUTSIDE THE PREMISES OF
AN AUTHORIZED ORGANIZATION OR AN AUTHORIZED GAMES OF CHANCE LESSOR IF
SUCH SALES OCCUR IN A MUNICIPALITY THAT:
(1) HAS PASSED A LOCAL LAW, ORDINANCE OR RESOLUTION IN ACCORDANCE WITH
SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED FIFTY-TWO OF THIS
TITLE APPROVING THE CONDUCT OF GAMES OF CHANCE;
(2) IS LOCATED IN THE COUNTY IN WHICH THE MUNICIPALITY ISSUING THE
RAFFLE LICENSE IS LOCATED OR IN A COUNTY THAT IS CONTIGUOUS TO THE COUN-
TY IN WHICH THE MUNICIPALITY ISSUING THE RAFFLE LICENSE IS LOCATED; AND
(3) HAS NOT OBJECTED TO SUCH SALES AFTER THE COMMISSION GIVES NOTICE
TO SUCH MUNICIPALITY OF AN AUTHORIZED ORGANIZATION'S REQUEST TO SELL
SUCH RAFFLE TICKETS IN SUCH MUNICIPALITY.
(C) THE COMMISSION MAY BY REGULATION PRESCRIBE THE ADVANCE NOTICE AN
AUTHORIZED ORGANIZATION MUST PROVIDE TO THE COMMISSION IN ORDER TO TAKE
ADVANTAGE OF THE PROVISIONS OF PARAGRAPH (B) OF THIS SUBDIVISION, FORMS
IN WHICH SUCH A REQUEST SHALL BE MADE AND THE TIME PERIOD IN WHICH A
MUNICIPALITY MUST COMMUNICATE AN OBJECTION TO THE COMMISSION.
(D) NO SALE OF RAFFLE TICKETS SHALL BE MADE MORE THAN ONE HUNDRED
EIGHTY DAYS PRIOR TO THE DATE SCHEDULED FOR THE OCCASION AT WHICH THE
RAFFLE WILL BE CONDUCTED.
(E) THE WINNER OF ANY SINGLE PRIZE IN A RAFFLE SHALL NOT BE REQUIRED
TO BE PRESENT AT THE TIME SUCH RAFFLE IS CONDUCTED.
14. NO PERSON LICENSED TO MANUFACTURE, DISTRIBUTE OR SELL GAMES OF
CHANCE SUPPLIES OR EQUIPMENT, OR THEIR AGENTS, SHALL CONDUCT, PARTIC-
IPATE IN, OR ASSIST IN THE CONDUCT OF GAMES OF CHANCE. NOTHING HEREIN
SHALL PROHIBIT A LICENSED DISTRIBUTOR FROM SELLING, OFFERING FOR SALE OR
EXPLAINING A PRODUCT TO AN AUTHORIZED ORGANIZATION OR INSTALLING OR
SERVICING GAMES OF CHANCE EQUIPMENT UPON THE PREMISES OF GAMES OF CHANCE
LICENSEES.
15. THE UNAUTHORIZED CONDUCT OF A GAME OF CHANCE SHALL CONSTITUTE AND
BE PUNISHABLE AS A MISDEMEANOR.
16. NO COINS OR MERCHANDISE FROM A COIN BOARD OR MERCHANDISE BOARD
SHALL BE REDEEMABLE OR CONVERTIBLE INTO CASH DIRECTLY OR INDIRECTLY BY
THE AUTHORIZED ORGANIZATION.
17. NO GAME OF CHANCE SHALL INVOLVE WAGERING OF MONEY BY ONE PLAYER
AGAINST ANOTHER PLAYER.
§ 1555. AUTHORIZED SUPPLIER OF GAMES OF CHANCE EQUIPMENT. 1. NO
PERSON, FIRM, PARTNERSHIP, CORPORATION OR ORGANIZATION SHALL SELL OR
S. 2009 133 A. 3009
DISTRIBUTE SUPPLIES OR EQUIPMENT SPECIFICALLY DESIGNED OR ADAPTED FOR
USE IN CONDUCT OF GAMES OF CHANCE WITHOUT HAVING FIRST OBTAINED A
LICENSE THEREFOR UPON WRITTEN APPLICATION MADE, VERIFIED AND FILED WITH
THE COMMISSION IN THE FORM PRESCRIBED BY THE RULES AND REGULATIONS OF
THE COMMISSION. AS A PART OF THE COMMISSION'S DETERMINATION CONCERNING
THE APPLICANT'S SUITABILITY FOR LICENSING AS A GAMES OF CHANCE SUPPLIER,
THE COMMISSION SHALL REQUIRE THE APPLICANT TO FURNISH TO THE COMMISSION
TWO SETS OF FINGERPRINTS. SUCH FINGERPRINTS SHALL BE SUBMITTED TO THE
DIVISION OF CRIMINAL JUSTICE SERVICES FOR A STATE CRIMINAL HISTORY
RECORD CHECK, AS DEFINED IN SUBDIVISION ONE OF SECTION THREE THOUSAND
THIRTY-FIVE OF THE EDUCATION LAW, AND MAY BE SUBMITTED TO THE FEDERAL
BUREAU OF INVESTIGATION FOR A NATIONAL CRIMINAL HISTORY RECORD CHECK.
MANUFACTURERS OF BELL JAR TICKETS SHALL BE CONSIDERED SUPPLIERS OF SUCH
EQUIPMENT. IN EACH SUCH APPLICATION FOR A LICENSE UNDER THIS SECTION
SHALL BE STATED THE NAME AND ADDRESS OF THE APPLICANT; THE NAMES AND
ADDRESSES OF ITS OFFICERS, DIRECTORS, SHAREHOLDERS OR PARTNERS; THE
AMOUNT OF GROSS RECEIPTS REALIZED ON THE SALE AND RENTAL OF GAMES OF
CHANCE SUPPLIES AND EQUIPMENT TO DULY LICENSED AUTHORIZED ORGANIZATIONS
DURING THE LAST PRECEDING CALENDAR OR FISCAL YEAR, AND SUCH OTHER INFOR-
MATION AS SHALL BE PRESCRIBED BY SUCH RULES AND REGULATIONS. THE FEE FOR
SUCH LICENSE SHALL BE A SUM EQUAL TO AN AMOUNT ESTABLISHED BY COMMISSION
REGULATION PLUS AN AMOUNT EQUAL TO TWO PERCENT OF THE GROSS SALES AND
RENTALS, IF ANY, OF GAMES OF CHANCE EQUIPMENT AND SUPPLIES TO AUTHORIZED
ORGANIZATIONS OR AUTHORIZED GAMES OF CHANCE LESSORS BY THE APPLICANT
DURING THE PRECEDING CALENDAR YEAR, OR FISCAL YEAR IF THE APPLICANT
MAINTAINS HIS ACCOUNTS ON A FISCAL YEAR BASIS. NO LICENSE GRANTED
PURSUANT TO THE PROVISIONS OF THIS SECTION SHALL BE EFFECTIVE FOR A
PERIOD OF MORE THAN ONE YEAR.
2. THE FOLLOWING SHALL BE INELIGIBLE FOR SUCH A LICENSE:
(A) A PERSON CONVICTED OF A CRIME IF THERE IS A DIRECT RELATIONSHIP
BETWEEN ONE OR MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE INTEGRITY
OF CHARITABLE GAMING, CONSIDERING THE FACTORS SET FORTH IN SECTION SEVEN
HUNDRED FIFTY-THREE OF THE CORRECTION LAW;
(B) A PERSON WHO IS OR HAS BEEN A PROFESSIONAL GAMBLER OR GAMBLING
PROMOTER OR WHO FOR OTHER REASONS IS NOT OF GOOD MORAL CHARACTER;
(C) A PUBLIC OFFICER OR EMPLOYEE;
(D) AN AUTHORIZED GAMES OF CHANCE LESSOR; OR
(E) A FIRM OR CORPORATION IN WHICH A PERSON DEFINED IN SUBPARAGRAPH
(A), (B), (C) OR (D) OF THIS SUBDIVISION HAS GREATER THAN A TEN PERCENT
PROPRIETARY, EQUITABLE OR CREDIT INTEREST OR IN WHICH SUCH A PERSON IS
ACTIVE OR EMPLOYED.
3. THE COMMISSION SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE EXAMINED
THE BOOKS AND RECORDS OF ANY APPLICANT FOR A LICENSE UNDER THIS SECTION.
ANY INFORMATION SO RECEIVED SHALL NOT BE DISCLOSED EXCEPT SO FAR AS MAY
BE NECESSARY FOR THE PURPOSE OF CARRYING OUT THE PROVISIONS OF THIS
TITLE.
4. ANY SOLICITATION OF AN ORGANIZATION LICENSED TO CONDUCT GAMES OF
CHANCE, TO PURCHASE OR INDUCE THE PURCHASE OF GAMES OF CHANCE SUPPLIES
AND EQUIPMENT, OTHER THAN BY A PERSON LICENSED OR OTHERWISE AUTHORIZED
PURSUANT TO THIS SECTION, SHALL CONSTITUTE A VIOLATION OF THIS SECTION.
5. ANY PERSON WHO WILLFULLY MAKES ANY MATERIAL FALSE STATEMENT IN ANY
APPLICATION FOR A LICENSE AUTHORIZED TO BE ISSUED UNDER THIS SECTION OR
WHO WILLFULLY VIOLATES ANY OF THE PROVISIONS OF THIS SECTION OR OF ANY
LICENSE ISSUED HEREUNDER SHALL BE GUILTY OF A MISDEMEANOR AND, IN ADDI-
TION TO THE PENALTIES IN SUCH CASE MADE AND PROVIDED, SHALL FORFEIT ANY
S. 2009 134 A. 3009
LICENSE ISSUED TO HIM, HER OR IT UNDER THIS SECTION AND BE INELIGIBLE TO
APPLY FOR A LICENSE UNDER THIS SECTION FOR ONE YEAR THEREAFTER.
6. AT THE END OF SUCH PERIOD SPECIFIED IN THE LICENSE, A RECAPITU-
LATION SHALL BE MADE AS BETWEEN THE LICENSEE AND THE COMMISSION IN
RESPECT OF THE GROSS SALES AND RENTALS ACTUALLY RECORDED DURING THAT
PERIOD AND THE FEE PAID THEREFOR, AND ANY DEFICIENCY OF FEE THEREBY
SHOWN TO BE DUE SHALL BE PAID BY THE LICENSEE AND ANY EXCESS OF FEE
THEREBY SHOWN TO HAVE BEEN PAID SHALL BE CREDITED TO SAID LICENSEE IN
SUCH MANNER AS THE COMMISSION BY RULES AND REGULATIONS SHALL PRESCRIBE.
§ 1556. DECLARATION OF STATE'S EXEMPTION FROM OPERATION OF PROVISIONS
OF 15 U.S.C. § 1172. PURSUANT TO SECTION TWO OF AN ACT OF CONGRESS OF
THE UNITED STATES ENTITLED "AN ACT TO PROHIBIT TRANSPORTATION OF GAMBL-
ING DEVICES IN INTERSTATE AND FOREIGN COMMERCE," APPROVED JANUARY
SECOND, NINETEEN HUNDRED FIFTY-ONE, BEING CHAPTER 1194, 64 STAT. 1134,
AND ALSO DESIGNATED AS 15 U.S.C. §§ 1171-1177, THE STATE OF NEW YORK,
ACTING BY AND THROUGH THE DULY ELECTED AND QUALIFIED MEMBERS OF ITS
LEGISLATURE, DOES HEREBY, IN ACCORDANCE WITH AND IN COMPLIANCE WITH THE
PROVISIONS OF SECTION TWO OF SAID ACT OF CONGRESS, DECLARE AND PROCLAIM
THAT IT IS EXEMPT FROM THE PROVISIONS OF SECTION TWO OF SAID ACT OF
CONGRESS.
§ 1557. LEGAL SHIPMENTS OF GAMING DEVICES INTO NEW YORK STATE. ALL
SHIPMENTS INTO THIS STATE OF GAMING DEVICES, EXCLUDING SLOT MACHINES AND
COIN OPERATED GAMBLING DEVICES, AS DEFINED IN SUBDIVISION SEVEN-A OF
SECTION 225.00 OF THE PENAL LAW, THE REGISTERING, RECORDING AND LABELING
OF WHICH HAS BEEN DULY HAD BY THE MANUFACTURER OR DEALER THEREOF IN
ACCORDANCE WITH SECTIONS THREE AND FOUR OF AN ACT OF CONGRESS OF THE
UNITED STATES ENTITLED "AN ACT TO PROHIBIT TRANSPORTATION OF GAMBLING
DEVICES IN INTERSTATE AND FOREIGN COMMERCE," APPROVED JANUARY SECOND,
NINETEEN HUNDRED FIFTY-ONE, BEING CHAPTER 1194, 64 STAT. 1134, AND ALSO
DESIGNATED AS 15 U.S.C. §§ 1171-1177, SHALL BE DEEMED LEGAL SHIPMENTS
THEREOF INTO THIS STATE.
§ 1558. APPLICATION FOR LICENSE. 1. TO CONDUCT GAMES OF CHANCE. (A)
EACH APPLICANT FOR A LICENSE SHALL, AFTER OBTAINING AN IDENTIFICATION
NUMBER FROM THE COMMISSION, FILE WITH THE CLERK OR DEPARTMENT, AN APPLI-
CATION THEREFOR IN A FORM TO BE PRESCRIBED BY THE COMMISSION, DULY
EXECUTED AND VERIFIED, IN WHICH SHALL BE STATED:
(1) THE NAME AND ADDRESS OF THE APPLICANT TOGETHER WITH SUFFICIENT
FACTS RELATING TO ITS INCORPORATION AND ORGANIZATION TO ENABLE SUCH
CLERK OR DEPARTMENT, AS THE CASE MAY BE, TO DETERMINE WHETHER OR NOT IT
IS A BONA FIDE AUTHORIZED ORGANIZATION;
(2) THE NAMES AND ADDRESSES OF ITS OFFICERS; THE PLACE OR PLACES
WHERE, THE DATE OR DATES AND THE TIME OR TIMES WHEN THE APPLICANT
INTENDS TO CONDUCT GAMES UNDER THE LICENSE APPLIED FOR;
(3) THE AMOUNT OF RENT TO BE PAID OR OTHER CONSIDERATION TO BE GIVEN
DIRECTLY OR INDIRECTLY FOR EACH LICENSED PERIOD FOR USE OF THE PREMISES
OF AN AUTHORIZED GAMES OF CHANCE LESSOR;
(4) ALL OTHER ITEMS OF EXPENSE INTENDED TO BE INCURRED OR PAID IN
CONNECTION WITH THE HOLDING, OPERATING AND CONDUCTING OF SUCH GAMES OF
CHANCE AND THE NAMES AND ADDRESSES OF THE PERSONS TO WHOM, AND THE
PURPOSES FOR WHICH, THEY ARE TO BE PAID;
(5) THE PURPOSES TO WHICH THE ENTIRE NET PROCEEDS OF SUCH GAMES ARE TO
BE DEVOTED AND IN WHAT MANNER; THAT NO COMMISSION, SALARY, COMPENSATION,
REWARD OR RECOMPENSE WILL BE PAID TO ANY PERSON FOR CONDUCTING SUCH GAME
OR GAMES OR FOR ASSISTING THEREIN EXCEPT AS IN THIS TITLE OTHERWISE
PROVIDED; AND SUCH OTHER INFORMATION AS SHALL BE PRESCRIBED BY SUCH
RULES AND REGULATIONS; AND
S. 2009 135 A. 3009
(6) THE NAME OF EACH SINGLE TYPE OF GAME OF CHANCE TO BE CONDUCTED
UNDER THE LICENSE APPLIED FOR AND THE NUMBER OF MERCHANDISE WHEELS AND
RAFFLES, IF ANY, TO BE OPERATED.
(B) IN EACH APPLICATION THERE SHALL BE DESIGNATED NOT LESS THAN FOUR
BONA FIDE MEMBERS OF THE APPLICANT ORGANIZATION UNDER WHOM THE GAME OR
GAMES OF CHANCE WILL BE MANAGED AND TO THE APPLICATION SHALL BE APPENDED
A STATEMENT EXECUTED BY THE MEMBERS SO DESIGNATED, THAT THEY WILL BE
RESPONSIBLE FOR THE MANAGEMENT OF SUCH GAMES IN ACCORDANCE WITH THE
TERMS OF THE LICENSE, THE RULES AND REGULATIONS OF THE COMMISSION, THIS
TITLE AND THE APPLICABLE LOCAL LAWS OR ORDINANCES.
2. AUTHORIZED GAMES OF CHANCE LESSOR. EACH APPLICANT FOR A LICENSE TO
LEASE PREMISES TO A LICENSED ORGANIZATION FOR THE PURPOSES OF CONDUCTING
GAMES OF CHANCE THEREIN SHALL FILE WITH THE CLERK OR DEPARTMENT AN
APPLICATION THEREFOR, IN A FORM TO BE PRESCRIBED BY THE COMMISSION DULY
EXECUTED AND VERIFIED, WHICH SHALL SET FORTH:
(A) THE NAME AND ADDRESS OF THE APPLICANT;
(B) DESIGNATION AND ADDRESS OF THE PREMISES INTENDED TO BE COVERED BY
THE LICENSE SOUGHT;
(C) A STATEMENT THAT THE APPLICANT IN ALL RESPECTS CONFORMS WITH THE
SPECIFICATIONS CONTAINED IN THE DEFINITION OF "AUTHORIZED ORGANIZATION"
SET FORTH IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE; AND
(D) A STATEMENT OF THE LAWFUL PURPOSES TO WHICH THE NET PROCEEDS FROM
ANY RENTAL ARE TO BE DEVOTED BY THE APPLICANT AND SUCH OTHER INFORMATION
AS SHALL BE PRESCRIBED BY THE COMMISSION.
3. IN COUNTIES OUTSIDE THE CITY OF NEW YORK, MUNICIPALITIES MAY,
PURSUANT TO SECTION FIFTEEN HUNDRED FIFTY-TWO OF THIS TITLE, ADOPT AN
ORDINANCE PROVIDING THAT AN AUTHORIZED ORGANIZATION HAVING OBTAINED AN
IDENTIFICATION NUMBER FROM THE COMMISSION, AND HAVING APPLIED FOR NO
MORE THAN ONE LICENSE TO CONDUCT GAMES OF CHANCE DURING THE PERIOD NOT
LESS THAN TWELVE NOR MORE THAN EIGHTEEN MONTHS IMMEDIATELY PRECEDING,
MAY FILE WITH THE CLERK OR DEPARTMENT A SUMMARY APPLICATION IN A FORM TO
BE PRESCRIBED BY THE COMMISSION DULY EXECUTED AND VERIFIED, CONTAINING
THE NAMES AND ADDRESSES OF THE APPLICANT ORGANIZATION AND ITS OFFICERS,
THE DATE, TIME AND PLACE OR PLACES WHERE THE APPLICANT INTENDS TO
CONDUCT GAMES UNDER THE LICENSE APPLIED FOR, THE PURPOSES TO WHICH THE
ENTIRE NET PROCEEDS OF SUCH GAMES ARE TO BE DEVOTED AND THE INFORMATION
AND STATEMENT REQUIRED BY PARAGRAPH (B) OF SUBDIVISION ONE OF THIS
SECTION IN LIEU OF THE APPLICATION REQUIRED UNDER SUBDIVISION ONE OF
THIS SECTION.
4. (A) NOTWITHSTANDING AND IN LIEU OF THE LICENSING REQUIREMENTS SET
FORTH IN THIS TITLE, AN AUTHORIZED ORGANIZATION DEFINED IN SECTION
FIFTEEN HUNDRED OF THIS ARTICLE MAY FILE A VERIFIED STATEMENT, FOR WHICH
NO FEE SHALL BE REQUIRED, WITH THE CLERK OR DEPARTMENT AND THE COMMIS-
SION ATTESTING THAT SUCH ORGANIZATION SHALL DERIVE NET PROCEEDS OR NET
PROFITS FROM RAFFLES IN AN AMOUNT LESS THAN THIRTY THOUSAND DOLLARS
DURING ONE OCCASION OR PART THEREOF AT WHICH RAFFLES ARE TO BE
CONDUCTED. SUCH STATEMENT SHALL BE ON A SINGLE-PAGE FORM PRESCRIBED BY
THE COMMISSION, AND SHALL BE DEEMED A LICENSE TO CONDUCT RAFFLES:
(1) UNDER THIS TITLE; AND
(2) WITHIN THE MUNICIPALITIES IN WHICH THE AUTHORIZED ORGANIZATION IS
DOMICILED THAT HAVE PASSED A LOCAL LAW, ORDINANCE OR RESOLUTION IN
ACCORDANCE WITH SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED
FIFTY-TWO OF THIS TITLE APPROVING THE CONDUCT OF GAMES OF CHANCE, AND IN
MUNICIPALITIES THAT HAVE PASSED A LOCAL LAW, ORDINANCE OR RESOLUTION IN
ACCORDANCE WITH SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED
FIFTY-TWO OF THIS TITLE APPROVING THE CONDUCT OF GAMES OF CHANCE THAT
S. 2009 136 A. 3009
ARE LOCATED IN THE COUNTY IN WHICH THE MUNICIPALITY ISSUING THE LICENSE
IS LOCATED AND IN THE COUNTIES THAT ARE CONTIGUOUS TO THE COUNTY IN
WHICH THE MUNICIPALITY ISSUING THE RAFFLE LICENSE IS LOCATED, PROVIDED
THOSE MUNICIPALITIES HAVE AUTHORIZED THE LICENSEE, IN WRITING, TO SELL
SUCH RAFFLE TICKETS THEREIN.
(B) AN ORGANIZATION THAT HAS FILED A VERIFIED STATEMENT WITH THE CLERK
OR DEPARTMENT AND THE COMMISSION ATTESTING THAT SUCH ORGANIZATION SHALL
DERIVE NET PROCEEDS OR NET PROFITS FROM RAFFLES IN AN AMOUNT LESS THAN
THIRTY THOUSAND DOLLARS DURING ONE OCCASION OR PART THEREOF THAT IN FACT
DERIVES NET PROCEEDS OR NET PROFITS EXCEEDING THIRTY THOUSAND DOLLARS
DURING ANY ONE OCCASION OR PART THEREOF SHALL BE REQUIRED TO OBTAIN A
LICENSE AS REQUIRED BY THIS TITLE AND SHALL BE SUBJECT TO THE PROVISIONS
OF SECTION FIFTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE.
§ 1559. RAFFLES; LICENSE NOT REQUIRED. 1. NOTWITHSTANDING THE LICENS-
ING REQUIREMENTS SET FORTH IN THIS TITLE AND THEIR FILING REQUIREMENTS
SET FORTH IN SUBDIVISION FOUR OF SECTION FIFTEEN HUNDRED FIFTY-EIGHT OF
THIS TITLE, AN AUTHORIZED ORGANIZATION MAY CONDUCT A RAFFLE WITHOUT
COMPLYING WITH SUCH LICENSING REQUIREMENTS OR SUCH FILING REQUIREMENTS,
PROVIDED, THAT SUCH ORGANIZATION SHALL DERIVE NET PROCEEDS FROM RAFFLES
IN AN AMOUNT LESS THAN FIVE THOUSAND DOLLARS DURING THE CONDUCT OF ONE
RAFFLE AND SHALL DERIVE NET PROCEEDS FROM RAFFLES IN AN AMOUNT LESS THAN
THIRTY THOUSAND DOLLARS DURING ONE CALENDAR YEAR.
2. NO PERSON UNDER THE AGE OF EIGHTEEN SHALL BE PERMITTED TO PLAY,
OPERATE OR ASSIST IN ANY RAFFLE CONDUCTED PURSUANT TO THIS SECTION.
3. NO RAFFLE SHALL BE CONDUCTED PURSUANT TO THIS SECTION EXCEPT WITHIN
A MUNICIPALITY IN WHICH THE AUTHORIZED ORGANIZATION IS DOMICILED THAT
HAS PASSED A LOCAL LAW, ORDINANCE OR RESOLUTION IN ACCORDANCE WITH
SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED FIFTY-TWO OF THIS
TITLE APPROVING THE CONDUCT OF GAMES OF CHANCE, AND IN MUNICIPALITIES
THAT HAVE PASSED A LOCAL LAW, ORDINANCE OR RESOLUTION IN ACCORDANCE WITH
SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED FIFTY-TWO OF THIS
TITLE APPROVING THE CONDUCT OF GAMES OF CHANCE THAT ARE LOCATED WITHIN
THE COUNTY OR CONTIGUOUS TO THE COUNTY IN WHICH THE ORGANIZATION IS
DOMICILED.
§ 1560. INVESTIGATION; MATTERS TO BE DETERMINED; ISSUANCE OF LICENSE;
FEES; DURATION OF LICENSE. 1. THE CLERK OR DEPARTMENT SHALL MAKE AN
INVESTIGATION OF THE QUALIFICATIONS OF EACH APPLICANT AND THE MERITS OF
EACH APPLICATION, WITH DUE EXPEDITION AFTER THE FILING OF THE APPLICA-
TION.
(A) ISSUANCE OF LICENSES TO CONDUCT GAMES OF CHANCE. IF SUCH CLERK OR
DEPARTMENT DETERMINES:
(1) THAT THE APPLICANT IS DULY QUALIFIED TO BE LICENSED TO CONDUCT
GAMES OF CHANCE UNDER THIS TITLE;
(2) THAT THE MEMBER OR MEMBERS OF THE APPLICANT DESIGNATED IN THE
APPLICATION TO MANAGE GAMES OF CHANCE ARE BONA FIDE ACTIVE MEMBERS OF
THE APPLICANT AND ARE PERSONS OF GOOD MORAL CHARACTER AND HAVE NEVER
BEEN CONVICTED OF A CRIME IF THERE IS A DIRECT RELATIONSHIP BETWEEN ONE
OR MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE INTEGRITY OF CHARITA-
BLE GAMING, CONSIDERING THE FACTORS SET FORTH IN SECTION SEVEN HUNDRED
FIFTY-THREE OF THE CORRECTION LAW;
(3) THAT SUCH GAMES ARE TO BE CONDUCTED IN ACCORDANCE WITH THE
PROVISIONS OF THIS TITLE AND IN ACCORDANCE WITH THE RULES AND REGU-
LATIONS OF THE COMMISSION AND APPLICABLE LOCAL LAWS OR ORDINANCES AND
THAT THE PROCEEDS THEREOF ARE TO BE DISPOSED OF AS PROVIDED BY THIS
TITLE; AND
S. 2009 137 A. 3009
(4) IS SATISFIED THAT NO COMMISSION, SALARY, COMPENSATION, REWARD OR
RECOMPENSE WHATSOEVER WILL BE PAID OR GIVEN TO ANY PERSON MANAGING,
OPERATING OR ASSISTING THEREIN EXCEPT AS IN THIS TITLE OTHERWISE
PROVIDED, THEN SUCH CLERK OR DEPARTMENT SHALL ISSUE A LICENSE TO THE
APPLICANT FOR THE CONDUCT OF GAMES OF CHANCE UPON PAYMENT OF A LICENSE
FEE IN AN AMOUNT ESTABLISHED BY REGULATION OF THE COMMISSION FOR EACH
LICENSE PERIOD.
(B) ISSUANCE OF LICENSES TO AUTHORIZED GAMES OF CHANCE LESSORS. IF
SUCH CLERK OR DEPARTMENT DETERMINES:
(1) THAT THE APPLICANT SEEKING TO LEASE PREMISES FOR THE CONDUCT OF
GAMES OF CHANCE TO A GAMES OF CHANCE LICENSEE IS DULY QUALIFIED TO BE
LICENSED UNDER THIS TITLE;
(2) THAT THE APPLICANT SATISFIES THE REQUIREMENTS FOR AN AUTHORIZED
ORGANIZATION AS DEFINED IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE;
(3) THAT THE APPLICANT HAS FILED ITS PROPOSED RENT FOR EACH LICENSE
PERIOD; AND
(4) THAT SUCH PROPOSED RENT IS FAIR AND REASONABLE;
(5) THAT THE NET PROCEEDS FROM ANY RENTAL WILL BE DEVOTED TO THE
LAWFUL PURPOSES OF THE APPLICANT;
(6) THAT THERE IS NO DIVERSION OF THE FUNDS OF THE PROPOSED LESSEE
FROM THE LAWFUL PURPOSES AS DEFINED IN THIS TITLE; AND
(7) THAT SUCH LEASING OF PREMISES FOR THE CONDUCT OF SUCH GAMES IS TO
BE IN ACCORDANCE WITH THE PROVISIONS OF THIS TITLE, WITH THE RULES AND
REGULATIONS OF THE COMMISSION AND APPLICABLE LOCAL LAWS AND ORDINANCES,
THEN SUCH CLERK OR DEPARTMENT SHALL ISSUE A LICENSE PERMITTING THE
APPLICANT TO LEASE SAID PREMISES FOR THE CONDUCT OF SUCH GAMES TO THE
GAMES OF CHANCE LICENSEE OR LICENSEES SPECIFIED IN THE APPLICATION
DURING THE PERIOD THEREIN SPECIFIED OR SUCH SHORTER PERIOD AS SUCH CLERK
OR DEPARTMENT DETERMINES, BUT NOT TO EXCEED TWELVE LICENSE PERIODS
DURING A CALENDAR YEAR, UPON PAYMENT OF A LICENSE FEE IN AN AMOUNT
ESTABLISHED BY THE REGULATIONS OF THE COMMISSION. NOTHING HEREIN SHALL
BE CONSTRUED TO REQUIRE THE APPLICANT TO BE LICENSED UNDER THIS TITLE TO
CONDUCT GAMES OF CHANCE.
(C) ISSUANCE OF LICENSE UPON SUMMARY APPLICATION. IF, UPON THE BASIS
OF A SUMMARY APPLICATION AS PRESCRIBED UNDER SUBDIVISION THREE OF
SECTION FIFTEEN HUNDRED FIFTY-EIGHT OF THIS TITLE, THE CLERK OR DEPART-
MENT DETERMINES THAT THE APPLICANT IS DULY QUALIFIED TO BE LICENSED TO
CONDUCT GAMES OF CHANCE UNDER THIS TITLE, SAID CLERK OR DEPARTMENT SHALL
FORTHWITH ISSUE SAID LICENSE. IN THE EVENT THE CLERK OR DEPARTMENT HAS
REASON TO BELIEVE THAT THE APPLICANT IS NOT SO QUALIFIED THE APPLICANT
SHALL BE DIRECTED TO FILE AN APPLICATION PURSUANT TO SUBDIVISION ONE OF
SECTION FIFTEEN HUNDRED FIFTY-EIGHT OF THIS TITLE.
2. ON OR BEFORE THE LAST DAY OF EACH MONTH, THE TREASURER OF THE MUNI-
CIPALITY IN WHICH THE LICENSED PROPERTY IS LOCATED SHALL TRANSMIT TO THE
STATE COMPTROLLER A SUM EQUAL TO FIFTY PERCENT OF ALL AUTHORIZED GAMES
OF CHANCE LESSOR LICENSE FEES AND A SUM ESTABLISHED BY REGULATION OF THE
COMMISSION PER LICENSE PERIOD FOR THE CONDUCT OF GAMES OF CHANCE
COLLECTED BY SUCH CLERK OR DEPARTMENT PURSUANT TO THIS SECTION DURING
THE PRECEDING CALENDAR MONTH.
3. NO LICENSE SHALL BE ISSUED UNDER THIS SECTION THAT IS EFFECTIVE FOR
A PERIOD OF MORE THAN ONE YEAR.
§ 1561. HEARING; AMENDMENT OF LICENSE. 1. NO APPLICATION FOR THE ISSU-
ANCE OF A LICENSE TO CONDUCT GAMES OF CHANCE OR LEASE PREMISES TO AN
AUTHORIZED ORGANIZATION SHALL BE DENIED BY THE CLERK OR DEPARTMENT,
UNTIL AFTER A HEARING, HELD ON DUE NOTICE TO THE APPLICANT, AT WHICH THE
S. 2009 138 A. 3009
APPLICANT SHALL BE ENTITLED TO BE HEARD UPON THE QUALIFICATIONS OF THE
APPLICANT AND THE MERITS OF THE APPLICATION.
2. ANY LICENSE ISSUED UNDER THIS TITLE MAY BE AMENDED, UPON APPLICA-
TION MADE TO SUCH CLERK OR DEPARTMENT THAT ISSUED IT, IF THE SUBJECT
MATTER OF THE PROPOSED AMENDMENT COULD LAWFULLY AND PROPERLY HAVE BEEN
INCLUDED IN THE ORIGINAL LICENSE AND UPON PAYMENT OF SUCH ADDITIONAL
LICENSE FEE, IF ANY, AS WOULD HAVE BEEN PAYABLE IF IT HAD BEEN SO
INCLUDED.
§ 1562. FORM AND CONTENTS OF LICENSE; DISPLAY OF LICENSE. 1. EACH
LICENSE TO CONDUCT GAMES OF CHANCE SHALL BE IN SUCH FORM AS SHALL BE
PRESCRIBED IN THE RULES AND REGULATIONS OF THE COMMISSION AND SHALL
CONTAIN:
(A) A STATEMENT OF THE NAME AND ADDRESS OF THE LICENSEE, OF THE NAMES
AND ADDRESSES OF THE MEMBERS OF THE LICENSEE UNDER WHOM THE GAMES WILL
BE MANAGED;
(B) A STATEMENT OF THE PLACE OR PLACES WHERE, AND THE DATE OR DATES
AND TIME OR TIMES WHEN, SUCH GAMES ARE TO BE CONDUCTED;
(C) A STATEMENT OF THE PURPOSES TO WHICH THE ENTIRE NET PROCEEDS OF
SUCH GAMES ARE TO BE DEVOTED;
(D) THE NAME OF EACH SINGLE TYPE OF GAME TO BE CONDUCTED UNDER THE
LICENSE AND THE NUMBER OF MERCHANDISE WHEELS AND RAFFLES, IF ANY, TO BE
OPERATED; AND
(E) ANY OTHER INFORMATION THAT MAY BE REQUIRED BY THE RULES AND REGU-
LATIONS OF THE COMMISSION TO BE CONTAINED THEREIN.
2. EACH LICENSE ISSUED FOR THE CONDUCT OF ANY GAMES SHALL BE DISPLAYED
CONSPICUOUSLY AT THE PLACE WHERE SUCH GAMES ARE TO BE CONDUCTED AT ALL
TIMES DURING THE CONDUCT THEREOF.
3. EACH LICENSE TO LEASE PREMISES FOR CONDUCTING GAMES OF CHANCE SHALL
BE IN SUCH FORM AS SHALL BE PRESCRIBED IN THE RULES AND REGULATIONS OF
THE COMMISSION AND SHALL CONTAIN A STATEMENT OF THE NAME AND ADDRESS OF
THE LICENSEE AND THE ADDRESS OF THE LEASED PREMISES, THE AMOUNT OF
PERMISSIBLE RENT AND ANY INFORMATION THAT MAY BE REQUIRED BY SAID RULES
AND REGULATIONS TO BE CONTAINED THEREIN, AND EACH SUCH LICENSE SHALL BE
CONSPICUOUSLY DISPLAYED UPON SUCH PREMISES AT ALL TIMES DURING THE
CONDUCT OF GAMES OF CHANCE.
§ 1563. CONTROL AND SUPERVISION; SUSPENSION OF IDENTIFICATION NUMBERS
AND LICENSES; INSPECTIONS OF PREMISES. 1. THE MUNICIPAL OFFICER OR
DEPARTMENT SHALL HAVE AND EXERCISE RIGID CONTROL AND CLOSE SUPERVISION
OVER ALL GAMES OF CHANCE CONDUCTED UNDER SUCH LICENSE, TO THE END THAT
THE SAME ARE CONDUCTED FAIRLY IN ACCORDANCE WITH THE PROVISIONS OF SUCH
LICENSE, THE PROVISIONS OF THE RULES AND REGULATIONS PROMULGATED BY THE
COMMISSION AND THE PROVISIONS OF THIS TITLE. SUCH MUNICIPAL OFFICER OR
DEPARTMENT AND THE COMMISSION SHALL HAVE THE POWER AND THE AUTHORITY TO
SUSPEND TEMPORARILY ANY LICENSE ISSUED BY THE CLERK OR DEPARTMENT AND/OR
IMPOSE FINES FOR VIOLATIONS NOT TO EXCEED ONE THOUSAND DOLLARS. TEMPO-
RARY SUSPENSION OF LICENSES SHALL BE FOLLOWED PROMPTLY BY A HEARING, AND
AFTER NOTICE AND HEARING, THE CLERK, DEPARTMENT OR THE COMMISSION MAY
SUSPEND OR REVOKE THE SAME AND DECLARE THE VIOLATOR INELIGIBLE TO APPLY
FOR A LICENSE FOR A PERIOD NOT EXCEEDING TWELVE MONTHS THEREAFTER. ANY
FINES TENDERED TO THE CLERK, DEPARTMENT OR THE COMMISSION SHALL NOT BE
PAID FROM FUNDS DERIVED FROM THE CONDUCT OF GAMES OF CHANCE. THE MUNICI-
PAL OFFICER AND THE DEPARTMENT OR THE COMMISSION SHALL ADDITIONALLY HAVE
THE RIGHT OF ENTRY, BY THEIR RESPECTIVE MUNICIPAL OFFICERS AND AGENTS,
AT ALL TIMES INTO ANY PREMISES WHERE ANY GAME OF CHANCE IS BEING
CONDUCTED OR WHERE IT IS INTENDED THAT ANY SUCH GAME SHALL BE CONDUCTED,
OR WHERE ANY EQUIPMENT BEING USED OR INTENDED TO BE USED IN THE CONDUCT
S. 2009 139 A. 3009
THEREOF IS FOUND, FOR THE PURPOSE OF INSPECTING THE SAME. UPON SUSPEN-
SION OR REVOCATION OF ANY LICENSE OR UPON DECLARATION OF INELIGIBILITY
TO APPLY FOR A LICENSE, THE COMMISSION MAY SUSPEND OR REVOKE THE IDEN-
TIFICATION NUMBER ISSUED PURSUANT TO SECTION FIFTEEN HUNDRED FIFTY-THREE
OF THIS TITLE. AN AGENT OF THE APPROPRIATE MUNICIPAL OFFICER OR DEPART-
MENT SHALL MAKE AN ON-SITE INSPECTION DURING THE CONDUCT OF ALL GAMES OF
CHANCE LICENSED PURSUANT TO THIS TITLE.
2. A MUNICIPALITY MAY, BY LOCAL LAW OR ORDINANCE ENACTED PURSUANT TO
THE PROVISIONS OF SECTION FIFTEEN HUNDRED FIFTY-TWO OF THIS TITLE,
PROVIDE THAT THE POWERS AND DUTIES SET FORTH IN SUBDIVISION ONE OF THIS
SECTION SHALL BE EXERCISED BY THE CHIEF LAW ENFORCEMENT OFFICER OF THE
COUNTY. IN THE EVENT A MUNICIPALITY EXERCISES THIS OPTION, THE FEES
PROVIDED FOR BY SUBDIVISION TWO OF SECTION FIFTEEN HUNDRED SIXTY-SEVEN
OF THIS TITLE SHALL BE REMITTED TO THE CHIEF FISCAL OFFICER OF THE COUN-
TY.
3. SERVICE OF ALCOHOLIC BEVERAGES. SUBJECT TO THE APPLICABLE
PROVISIONS OF THE ALCOHOLIC BEVERAGE CONTROL LAW, BEER MAY BE OFFERED
FOR SALE DURING THE CONDUCT OF GAMES OF CHANCE ON GAMES OF CHANCE PREM-
ISES AS SUCH PREMISES ARE DEFINED IN SECTION FIFTEEN HUNDRED OF THIS
ARTICLE; PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL BE CONSTRUED TO
LIMIT THE OFFERING FOR SALE OF ANY OTHER ALCOHOLIC BEVERAGE IN AREAS
OTHER THAN THE GAMES OF CHANCE PREMISES OR THE SALE OF ANY OTHER ALCO-
HOLIC BEVERAGE IN PREMISES WHERE ONLY THE GAMES OF CHANCE KNOWN AS BELL
JARS OR RAFFLES ARE CONDUCTED.
§ 1564. FREQUENCY OF GAMES. 1. NO GAME OR GAMES OF CHANCE SHALL BE
CONDUCTED UNDER ANY LICENSE ISSUED UNDER THIS TITLE MORE OFTEN THAN
TWELVE TIMES IN ANY CALENDAR YEAR. NO PARTICULAR PREMISES SHALL BE USED
FOR THE CONDUCT OF GAMES OF CHANCE ON MORE THAN TWENTY-FOUR LICENSE
PERIODS DURING ANY ONE CALENDAR YEAR.
2. GAMES OF CHANCE OTHER THAN BELL JARS AND RAFFLES MAY BE CONDUCTED
AT ANY TIME, UNLESS THE GAMES OF CHANCE LICENSE PROVIDES OTHERWISE. NO
LICENSE MAY RESTRICT THE TIMES IN WHICH BELL JARS OR RAFFLES ARE
CONDUCTED, SUBJECT TO THE LIMITATIONS ON THE LICENSE PERIOD FOR SUCH
GAMES SET FORTH IN SUBDIVISION EIGHTEEN OF SECTION FIFTEEN HUNDRED OF
THIS ARTICLE.
§ 1565. PERSONS OPERATING GAMES; EQUIPMENT; EXPENSES; COMPENSATION. 1.
NO PERSON SHALL OPERATE ANY GAME OF CHANCE UNDER ANY LICENSE ISSUED
UNDER THIS TITLE EXCEPT A BONA FIDE MEMBER OF THE AUTHORIZED ORGANIZA-
TION TO WHICH THE LICENSE IS ISSUED, OR A BONA FIDE MEMBER OF AN ORGAN-
IZATION OR ASSOCIATION THAT IS AN AUXILIARY TO THE LICENSEE OR A BONA
FIDE MEMBER OF AN ORGANIZATION OR ASSOCIATION OF WHICH SUCH LICENSEE IS
AN AUXILIARY OR A BONA FIDE MEMBER OF AN ORGANIZATION OR ASSOCIATION
THAT IS AFFILIATED WITH THE LICENSEE BY BEING, WITH IT, AUXILIARY TO
ANOTHER ORGANIZATION OR ASSOCIATION. NOTHING HEREIN SHALL BE CONSTRUED
TO LIMIT THE NUMBER OF GAMES OF CHANCE LICENSEES FOR WHOM SUCH PERSONS
MAY OPERATE GAMES OF CHANCE NOR TO PREVENT NON-MEMBERS FROM ASSISTING
THE LICENSEE IN ANY ACTIVITY OTHER THAN MANAGING OR OPERATING GAMES. FOR
THE PURPOSE OF THE SALE OF TICKETS FOR THE GAME OF RAFFLE, THE TERM
"OPERATE" SHALL NOT INCLUDE THE SALE OF SUCH TICKETS BY PERSONS OF
LINEAL OR COLLATERAL CONSANGUINITY TO MEMBERS OF AN AUTHORIZED ORGANIZA-
TION LICENSED TO CONDUCT A RAFFLE.
2. NO GAME OF CHANCE SHALL BE CONDUCTED WITH ANY EQUIPMENT EXCEPT SUCH
AS SHALL BE OWNED OR LEASED BY THE AUTHORIZED ORGANIZATION SO LICENSED
OR USED WITHOUT PAYMENT OF ANY COMPENSATION THEREFOR BY THE LICENSEE.
HOWEVER, IN NO EVENT SHALL BELL JAR TICKETS BE TRANSFERRED FROM ONE
S. 2009 140 A. 3009
AUTHORIZED ORGANIZATION TO ANOTHER, WITH OR WITHOUT PAYMENT OF ANY
COMPENSATION THEREOF.
3. THE HEAD OR HEADS OF THE AUTHORIZED ORGANIZATION SHALL UPON REQUEST
CERTIFY, UNDER OATH, THAT THE PERSONS OPERATING ANY GAME OF CHANCE ARE
BONA FIDE MEMBERS OF SUCH AUTHORIZED ORGANIZATION, AUXILIARY OR AFFIL-
IATED ORGANIZATION.
4. UPON REQUEST BY A MUNICIPAL OFFICER OR THE DEPARTMENT ANY SUCH
PERSON INVOLVED IN SUCH GAMES OF CHANCE SHALL CERTIFY THAT HE OR SHE HAS
NO CRIMINAL RECORD OR SHALL DISCLOSE PREVIOUS CRIMINAL OFFENSES FOR
CONSIDERATION OF THE FACTORS SET FORTH IN SECTION SEVEN HUNDRED FIFTY-
THREE OF THE CORRECTION LAW.
5. NO ITEMS OF EXPENSE SHALL BE INCURRED OR PAID IN CONNECTION WITH
THE CONDUCTING OF ANY GAME OF CHANCE PURSUANT TO ANY LICENSE ISSUED
UNDER THIS TITLE EXCEPT THOSE THAT ARE REASONABLE AND ARE NECESSARILY
EXPENDED FOR GAMES OF CHANCE SUPPLIES AND EQUIPMENT, PRIZES, SECURITY
PERSONNEL, STATED RENTAL IF ANY, BOOKKEEPING OR ACCOUNTING SERVICES
ACCORDING TO A SCHEDULE OF COMPENSATION PRESCRIBED BY THE COMMISSION,
JANITORIAL SERVICES AND UTILITY SUPPLIES IF ANY, AND LICENSE FEES, AND
THE COST OF BUS TRANSPORTATION, IF AUTHORIZED BY SUCH CLERK OR DEPART-
MENT.
6. NO COMMISSION, SALARY, COMPENSATION, REWARD OR RECOMPENSE SHALL BE
PAID OR GIVEN TO ANY PERSON FOR THE SALE OR ASSISTING WITH THE SALE OF
RAFFLE TICKETS.
§ 1566. CHARGE FOR ADMISSION AND PARTICIPATION; AMOUNT OF PRIZES;
AWARD OF PRIZES. 1. A FEE MAY BE CHARGED BY ANY LICENSEE FOR ADMISSION
TO ANY GAME OR GAMES OF CHANCE CONDUCTED UNDER ANY LICENSE ISSUED UNDER
THIS TITLE. THE CLERK OR DEPARTMENT MAY IN ITS DISCRETION FIX A MINIMUM
FEE.
2. WITH THE EXCEPTION OF BELL JARS, COIN BOARDS, SEAL CARDS, MERCHAN-
DISE BOARDS AND RAFFLES, EVERY WINNER SHALL BE DETERMINED AND EVERY
PRIZE SHALL BE AWARDED AND DELIVERED WITHIN THE SAME CALENDAR DAY AS
THAT UPON WHICH THE GAME WAS PLAYED.
3. A PLAYER MAY PURCHASE A CHANCE WITH CASH OR, IF THE AUTHORIZED
ORGANIZATION WISHES, WITH A PERSONAL CHECK, CREDIT CARD OR DEBIT CARD.
§ 1567. STATEMENT OF RECEIPTS AND EXPENSES; ADDITIONAL LICENSE FEES.
1. WITHIN SEVEN DAYS AFTER THE CONCLUSION OF ANY LICENSE PERIOD OTHER
THAN A LICENSE PERIOD FOR A RAFFLE, OR AS OTHERWISE PRESCRIBED BY THE
COMMISSION, THE AUTHORIZED ORGANIZATION THAT CONDUCTED THE SAME, AND ITS
MEMBERS WHO WERE IN CHARGE THEREOF, AND WHEN APPLICABLE THE AUTHORIZED
GAMES OF CHANCE LESSOR THAT RENTED ITS PREMISES THEREFOR, SHALL EACH
FURNISH TO THE CLERK OR DEPARTMENT A STATEMENT SUBSCRIBED BY THE MEMBER
IN CHARGE AND AFFIRMED BY HIM OR HER AS TRUE, UNDER THE PENALTIES OF
PERJURY, SHOWING THE AMOUNT OF THE GROSS RECEIPTS DERIVED THEREFROM AND
EACH ITEM OF EXPENSE INCURRED, OR PAID, AND EACH ITEM OF EXPENDITURE
MADE OR TO BE MADE OTHER THAN PRIZES, THE NAME AND ADDRESS OF EACH
PERSON TO WHOM EACH SUCH ITEM OF EXPENSE HAS BEEN PAID, OR IS TO BE
PAID, WITH A DETAILED DESCRIPTION OF THE MERCHANDISE PURCHASED OR THE
SERVICES RENDERED THEREFOR, THE NET PROCEEDS DERIVED FROM THE CONDUCT OF
GAMES OF CHANCE DURING SUCH LICENSE PERIOD, AND THE USE TO WHICH SUCH
PROCEEDS HAVE BEEN OR ARE TO BE APPLIED. IT SHALL BE THE DUTY OF EACH
LICENSEE TO MAINTAIN AND KEEP SUCH BOOKS AND RECORDS AS MAY BE NECESSARY
TO SUBSTANTIATE THE PARTICULARS OF EACH SUCH STATEMENT.
2. WITHIN THIRTY DAYS AFTER THE CONCLUSION OF AN OCCASION DURING WHICH
A RAFFLE WAS CONDUCTED, THE AUTHORIZED ORGANIZATION CONDUCTING SUCH
RAFFLE AND THE MEMBERS IN CHARGE OF SUCH RAFFLE, AND, WHEN APPLICABLE,
THE AUTHORIZED GAMES OF CHANCE LESSOR THAT RENTED ITS PREMISES THEREFOR,
S. 2009 141 A. 3009
SHALL EACH FURNISH TO THE CLERK OR DEPARTMENT A STATEMENT ON A FORM
PRESCRIBED BY THE COMMISSION, SUBSCRIBED BY THE MEMBER IN CHARGE AND
AFFIRMED BY HIM OR HER AS TRUE, UNDER THE PENALTIES OF PERJURY, SHOWING:
(A) THE NUMBER OF TICKETS PRINTED;
(B) THE NUMBER OF TICKETS SOLD;
(C) THE PRICE AND THE NUMBER OF TICKETS RETURNED TO OR RETAINED BY THE
AUTHORIZED ORGANIZATION AS UNSOLD;
(D) A DESCRIPTION AND STATEMENT OF THE FAIR MARKET VALUE FOR EACH
PRIZE ACTUALLY AWARDED;
(E) THE AMOUNT OF THE GROSS RECEIPTS DERIVED THEREFROM;
(F) EACH ITEM OF EXPENDITURE MADE OR TO BE MADE OTHER THAN PRIZES;
(G) THE NAME AND ADDRESS OF EACH PERSON TO WHOM EACH SUCH ITEM OF
EXPENSE HAS BEEN PAID, OR IS TO BE PAID;
(H) A DETAILED DESCRIPTION OF THE MERCHANDISE PURCHASED OR THE
SERVICES RENDERED THEREFOR;
(I) THE NET PROCEEDS DERIVED FROM THE RAFFLE AT SUCH OCCASION; AND
(J) THE USE TO WHICH THE PROCEEDS HAVE BEEN OR ARE TO BE APPLIED. IT
SHALL BE THE DUTY OF EACH LICENSEE TO MAINTAIN AND KEEP SUCH BOOKS AND
RECORDS AS MAY BE NECESSARY TO SUBSTANTIATE THE PARTICULARS OF EACH SUCH
STATEMENT, PROVIDED, HOWEVER, WHERE THE CUMULATIVE NET PROCEEDS OR NET
PROFITS DERIVED FROM THE CONDUCT OF A RAFFLE OR RAFFLES ARE LESS THAN
THIRTY THOUSAND DOLLARS DURING ANY ONE OCCASION, IN SUCH CASE, THE
REPORTING REQUIREMENT SHALL BE SATISFIED BY THE FILING WITHIN THIRTY
DAYS OF THE CONCLUSION OF SUCH OCCASION A VERIFIED STATEMENT PRESCRIBED
BY THE COMMISSION ATTESTING TO THE AMOUNT OF SUCH NET PROCEEDS OR NET
PROFITS AND THE DISTRIBUTION THEREOF FOR LAWFUL PURPOSES WITH THE CLERK
OR DEPARTMENT AND A COPY WITH THE COMMISSION, AND PROVIDED FURTHER,
HOWEVER, WHERE THE CUMULATIVE NET PROCEEDS DERIVED FROM THE CONDUCT OF A
RAFFLE OR RAFFLES ARE LESS THAN FIVE THOUSAND DOLLARS DURING ANY ONE
OCCASION AND LESS THAN THIRTY THOUSAND DOLLARS DURING ONE CALENDAR YEAR,
NO REPORTING SHALL BE REQUIRED.
3. ANY AUTHORIZED ORGANIZATION REQUIRED TO FILE AN ANNUAL REPORT WITH
THE SECRETARY OF STATE PURSUANT TO ARTICLE SEVEN-A OF THE EXECUTIVE LAW
OR THE ATTORNEY GENERAL PURSUANT TO ARTICLE EIGHT OF THE ESTATES, POWERS
AND TRUSTS LAW SHALL INCLUDE WITH SUCH ANNUAL REPORT A COPY OF THE
STATEMENT REQUIRED TO BE FILED WITH THE CLERK OR DEPARTMENT PURSUANT TO
SUBDIVISION ONE OR TWO OF THIS SECTION.
4. UPON THE FILING OF SUCH STATEMENT OF RECEIPTS PURSUANT TO SUBDIVI-
SION ONE OR TWO OF THIS SECTION, THE AUTHORIZED ORGANIZATION FURNISHING
THE SAME SHALL PAY TO THE CLERK OR DEPARTMENT AS AND FOR AN ADDITIONAL
LICENSE FEE A SUM BASED UPON THE REPORTED NET PROCEEDS, IF ANY, FOR THE
LICENSE PERIOD, OR IN THE CASE OF RAFFLES, FOR THE OCCASION COVERED BY
SUCH STATEMENT AND DETERMINED IN ACCORDANCE WITH SUCH SCHEDULE AS SHALL
BE ESTABLISHED FROM TIME TO TIME BY THE COMMISSION TO DEFRAY THE ACTUAL
COST TO MUNICIPALITIES OR COUNTIES OF ADMINISTERING THE PROVISIONS OF
THIS TITLE, BUT SUCH ADDITIONAL LICENSE FEE SHALL NOT EXCEED FIVE
PERCENT OF THE NET PROCEEDS FOR SUCH LICENSE PERIOD. THE PROVISIONS OF
THIS SUBDIVISION SHALL NOT APPLY TO THE NET PROCEEDS FROM THE SALE OF
BELL JAR TICKETS. NO FEE SHALL BE REQUIRED WHERE THE NET PROCEEDS OR NET
PROFITS DERIVED FROM THE CONDUCT OF A RAFFLE OR RAFFLES ARE LESS THAN
THIRTY THOUSAND DOLLARS DURING ANY ONE OCCASION.
§ 1568. EXAMINATION OF BOOKS AND RECORDS; EXAMINATION OF OFFICERS AND
EMPLOYEES; DISCLOSURE OF INFORMATION. THE CLERK OR DEPARTMENT AND THE
COMMISSION SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE EXAMINED THE BOOKS
AND RECORDS OF:
S. 2009 142 A. 3009
1. ANY AUTHORIZED ORGANIZATION THAT IS OR HAS BEEN LICENSED TO CONDUCT
GAMES OF CHANCE, SO FAR AS THEY MAY RELATE TO GAMES OF CHANCE, INCLUDING
THE MAINTENANCE, CONTROL AND DISPOSITION OF NET PROCEEDS DERIVED FROM
GAMES OF CHANCE OR FROM THE USE OF ITS PREMISES FOR GAMES OF CHANCE, AND
TO EXAMINE ANY MANAGER, OFFICER, DIRECTOR, AGENT, MEMBER OR EMPLOYEE
THEREOF UNDER OATH IN RELATION TO THE CONDUCT OF ANY SUCH GAME UNDER ANY
SUCH LICENSE, THE USE OF ITS PREMISES FOR GAMES OF CHANCE, OR THE DISPO-
SITION OF NET PROCEEDS DERIVED FROM GAMES OF CHANCE, AS THE CASE MAY BE;
OR
2. ANY AUTHORIZED GAMES OF CHANCE LESSOR, SO FAR AS SUCH BOOKS AND
RECORDS MAY RELATE TO LEASING PREMISES FOR GAMES OF CHANCE, AND TO EXAM-
INE SUCH LESSOR OR ANY MANAGER, OFFICER, DIRECTOR, AGENT OR EMPLOYEE
THEREOF UNDER OATH IN RELATION TO SUCH LEASING. ANY INFORMATION SO
RECEIVED SHALL NOT BE DISCLOSED EXCEPT SO FAR AS MAY BE NECESSARY FOR
THE PURPOSE OF CARRYING OUT THE PROVISIONS OF THIS TITLE.
§ 1569. APPEALS FOR THE DECISION OF A MUNICIPAL OFFICER, CLERK OR
DEPARTMENT TO THE COMMISSION. ANY APPLICANT FOR, OR HOLDER OF, ANY
LICENSE ISSUED OR TO BE ISSUED UNDER THIS TITLE AGGRIEVED BY ANY ACTION
OF A MUNICIPAL OFFICER, CLERK OR DEPARTMENT, TO WHICH SUCH APPLICATION
HAS BEEN MADE OR BY WHICH SUCH LICENSE HAS BEEN ISSUED, MAY APPEAL TO
THE COMMISSION FROM THE DETERMINATION OF SAID MUNICIPAL OFFICER, CLERK
OR DEPARTMENT BY FILING WITH SUCH MUNICIPAL OFFICER, CLERK OR DEPARTMENT
A WRITTEN NOTICE OF APPEAL WITHIN THIRTY DAYS AFTER THE DETERMINATION OR
ACTION APPEALED FROM, AND UPON THE HEARING OF SUCH APPEAL, THE EVIDENCE,
IF ANY, TAKEN BEFORE SUCH MUNICIPAL OFFICER, CLERK OR DEPARTMENT AND ANY
ADDITIONAL EVIDENCE MAY BE PRODUCED AND SHALL BE CONSIDERED IN ARRIVING
AT A DETERMINATION OF THE MATTERS IN ISSUE, AND THE ACTION OF THE
COMMISSION UPON SAID APPEAL SHALL BE BINDING UPON SUCH MUNICIPAL OFFI-
CER, CLERK OR DEPARTMENT AND ALL PARTIES TO SAID APPEAL.
§ 1570. EXEMPTION FROM PROSECUTION. NO PERSON, FIRM, PARTNERSHIP,
CORPORATION OR ORGANIZATION LAWFULLY CONDUCTING, OR PARTICIPATING IN THE
CONDUCT OF, GAMES OF CHANCE, OR PERMITTING THE CONDUCT UPON ANY PREMISES
OWNED OR LEASED BY HIM, HER OR IT UNDER ANY LICENSE LAWFULLY ISSUED
PURSUANT TO THIS TITLE, SHALL BE LIABLE TO PROSECUTION OR CONVICTION FOR
VIOLATION OF ANY PROVISION OF ARTICLE TWO HUNDRED TWENTY-FIVE OF THE
PENAL LAW OR ANY OTHER LAW OR ORDINANCE TO THE EXTENT THAT SUCH CONDUCT
IS SPECIFICALLY AUTHORIZED BY THIS TITLE, BUT THIS IMMUNITY SHALL NOT
EXTEND TO ANY PERSON OR CORPORATION KNOWINGLY CONDUCTING OR PARTICIPAT-
ING IN THE CONDUCT OF GAMES OF CHANCE UNDER ANY LICENSE OBTAINED BY ANY
FALSE PRETENSE OR BY ANY FALSE STATEMENT MADE IN ANY APPLICATION FOR
LICENSE OR OTHERWISE, OR PERMITTING THE CONDUCT UPON ANY PREMISES OWNED
OR LEASED BY HIM, HER OR IT OF ANY GAME OF CHANCE CONDUCTED UNDER ANY
LICENSE KNOWN TO HIM, HER OR IT TO HAVE BEEN OBTAINED BY ANY SUCH FALSE
PRETENSE OR STATEMENT.
§ 1571. OFFENSES; FORFEITURE OF LICENSE; INELIGIBILITY TO APPLY FOR
LICENSE. ANY PERSON, FIRM, PARTNERSHIP, CORPORATION OR ORGANIZATION WHO
OR THAT SHALL:
1. MAKE ANY MATERIAL FALSE STATEMENT IN ANY APPLICATION FOR ANY
LICENSE AUTHORIZED TO BE ISSUED UNDER THIS TITLE;
2. PAY OR RECEIVE, FOR THE USE OF ANY PREMISES FOR CONDUCTING GAMES OF
CHANCE, A RENTAL IN EXCESS OF THE AMOUNT SPECIFIED AS THE PERMISSIBLE
RENT IN THE LICENSE PROVIDED FOR IN SUBDIVISION THREE OF SECTION FIFTEEN
HUNDRED SIXTY-TWO OF THIS TITLE;
3. FAIL TO KEEP SUCH BOOKS AND RECORDS AS SHALL FULLY AND TRULY RECORD
ALL TRANSACTIONS CONNECTED WITH THE CONDUCTING OF GAMES OF CHANCE OR THE
LEASING OF PREMISES TO BE USED FOR THE CONDUCT OF GAMES OF CHANCE;
S. 2009 143 A. 3009
4. FALSIFY OR MAKE ANY FALSE ENTRY IN ANY BOOKS OR RECORDS SO FAR AS
THEY RELATE IN ANY MANNER TO THE CONDUCT OF GAMES OF CHANCE, TO THE
DISPOSITION OF THE PROCEEDS THEREOF AND TO THE APPLICATION OF THE RENTS
RECEIVED BY ANY AUTHORIZED ORGANIZATION;
5. DIVERT OR PAY ANY PORTION OF THE NET PROCEEDS OF ANY GAME OF CHANCE
TO ANY PERSON, FIRM, PARTNERSHIP, CORPORATION, EXCEPT IN FURTHERANCE OF
ONE OR MORE OF THE LAWFUL PURPOSES DEFINED IN THIS TITLE; SHALL BE GUIL-
TY OF A MISDEMEANOR AND SHALL FORFEIT ANY LICENSE ISSUED UNDER THIS
TITLE AND BE INELIGIBLE TO APPLY FOR A LICENSE UNDER THIS TITLE FOR AT
LEAST ONE YEAR THEREAFTER.
§ 1572. UNLAWFUL GAMES OF CHANCE. 1. ANY PERSON, ASSOCIATION, CORPO-
RATION OR ORGANIZATION HOLDING, OPERATING OR CONDUCTING A GAME OR GAMES
OF CHANCE IS GUILTY OF A MISDEMEANOR, EXCEPT WHEN OPERATING, HOLDING OR
CONDUCTING:
(A) IN ACCORDANCE WITH A VALID LICENSE ISSUED PURSUANT TO THIS TITLE;
(B) ON BEHALF OF A BONA FIDE ORGANIZATION OF PERSONS SIXTY YEARS OF
AGE OR OVER, COMMONLY REFERRED TO AS SENIOR CITIZENS, SOLELY FOR THE
PURPOSE OF AMUSEMENT AND RECREATION OF ITS MEMBERS WHERE:
(1) THE ORGANIZATION HAS APPLIED FOR AND RECEIVED AN IDENTIFICATION
NUMBER FROM THE COMMISSION;
(2) NO PLAYER OR OTHER PERSON FURNISHES ANYTHING OF VALUE FOR THE
OPPORTUNITY TO PARTICIPATE;
(3) THE PRIZES AWARDED OR TO BE AWARDED ARE NOMINAL;
(4) NO PERSON OTHER THAN A BONA FIDE ACTIVE MEMBER OF THE ORGANIZATION
PARTICIPATES IN THE CONDUCT OF THE GAMES; AND
(5) NO PERSON IS PAID FOR CONDUCTING OR ASSISTING IN THE CONDUCT OF
THE GAME OR GAMES; OR
(C) A RAFFLE PURSUANT TO SECTION FIFTEEN HUNDRED FIFTY-NINE OF THIS
TITLE.
2. THE PROVISIONS OF THIS SECTION SHALL APPLY TO ALL MUNICIPALITIES
WITHIN THIS STATE, INCLUDING THOSE MUNICIPALITIES WHERE THIS TITLE IS
INOPERATIVE.
§ 1573. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS. EXCEPT AS PROVIDED
IN SECTION FIFTEEN HUNDRED SEVENTY-TWO OF THIS TITLE, THE PROVISIONS OF
THIS TITLE SHALL REMAIN INOPERATIVE IN ANY MUNICIPALITY UNLESS AND UNTIL
A PROPOSITION THEREFOR SUBMITTED AT A GENERAL OR SPECIAL ELECTION IN
SUCH MUNICIPALITY SHALL BE APPROVED BY A VOTE OF THE MAJORITY OF THE
QUALIFIED ELECTORS IN SUCH MUNICIPALITY VOTING THEREON.
§ 1574. AMENDMENT AND REPEAL OF LOCAL LAWS AND ORDINANCES. ANY SUCH
LOCAL LAW OR ORDINANCE MAY BE AMENDED, FROM TIME TO TIME, OR REPEALED BY
THE COMMON COUNCIL OR OTHER LOCAL LEGISLATIVE BODY OF THE MUNICIPALITY
THAT ENACTED IT, BY A TWO-THIRDS VOTE OF SUCH LEGISLATIVE BODY AND SUCH
AMENDMENT OR REPEAL, AS THE CASE MAY BE, MAY BE MADE EFFECTIVE AND OPER-
ATIVE NOT EARLIER THAN THIRTY DAYS FOLLOWING THE EFFECTIVE DATE OF THE
LOCAL LAW OR ORDINANCE EFFECTING SUCH AMENDMENT OR REPEAL, AS THE CASE
MAY BE, AND THE APPROVAL OF A MAJORITY OF THE ELECTORS OF SUCH MUNICI-
PALITY SHALL NOT BE A CONDITION PREREQUISITE TO THE TAKING EFFECT OF
SUCH LOCAL LAW OR ORDINANCE.
§ 1575. MANUFACTURERS OF BELL JARS; REPORTS AND RECORDS. 1. DISTRIB-
UTION; MANUFACTURERS. FOR BUSINESS CONDUCTED IN THIS STATE, MANUFACTUR-
ERS LICENSED BY THE COMMISSION TO SELL BELL JAR TICKETS SHALL SELL SUCH
TICKETS ONLY TO DISTRIBUTORS LICENSED BY THE COMMISSION. MANUFACTURERS
OF BELL JAR TICKETS, SEAL CARDS, MERCHANDISE BOARDS AND COIN BOARDS MAY
SUBMIT SAMPLES, ARTISTS' RENDERINGS OR COLOR PHOTOCOPIES OF PROPOSED
BELL JAR TICKETS, SEAL CARDS, MERCHANDISE BOARDS, COIN BOARDS, PAYOUT
CARDS AND FLARES FOR REVIEW AND APPROVAL BY THE COMMISSION. WITHIN THIR-
S. 2009 144 A. 3009
TY DAYS OF RECEIPT OF SUCH SAMPLE OR RENDERING, THE COMMISSION SHALL
APPROVE OR DENY SUCH BELL JAR TICKETS. FOLLOWING APPROVAL OF A RENDERING
OF A BELL JAR TICKET, SEAL CARD, MERCHANDISE BOARD OR COIN BOARD BY THE
COMMISSION, THE MANUFACTURER SHALL SUBMIT TO THE COMMISSION A SAMPLE OF
THE PRINTED BELL JAR TICKET, SEAL CARD, MERCHANDISE BOARD, COIN BOARD,
PAYOUT CARD AND FLARE FOR SUCH GAME. SUCH SAMPLE SHALL BE SUBMITTED
PRIOR TO THE SALE OF THE GAME TO ANY LICENSED DISTRIBUTOR FOR RESALE IN
THIS STATE. FOR COIN BOARDS AND MERCHANDISE BOARDS, NOTHING HEREIN SHALL
REQUIRE THE SUBMITTAL OF ACTUAL COINS OR MERCHANDISE AS PART OF THE
APPROVAL PROCESS. ANY LICENSED MANUFACTURER WHO WILLFULLY VIOLATES THE
PROVISIONS OF THIS SECTION SHALL:
(A) UPON SUCH FIRST OFFENSE, HAVE ITS LICENSE SUSPENDED FOR A PERIOD
OF THIRTY DAYS;
(B) UPON SUCH SECOND OFFENSE, PARTICIPATE IN A HEARING TO BE CONDUCTED
BY THE COMMISSION, AND SURRENDER ITS LICENSE FOR SUCH PERIOD AS RECOM-
MENDED BY THE COMMISSION; AND
(C) UPON SUCH THIRD OR SUBSEQUENT OFFENSE, HAVE ITS LICENSE SUSPENDED
FOR A PERIOD OF ONE YEAR AND SHALL BE GUILTY OF A CLASS E FELONY. ANY
UNLICENSED MANUFACTURER WHO VIOLATES THE PROVISIONS OF THIS SECTION
SHALL BE GUILTY OF A CLASS E FELONY.
2. BAR CODES. THE MANUFACTURER SHALL AFFIX TO THE FLARE OF EACH BELL
JAR GAME A BAR CODE THAT PROVIDES ALL INFORMATION PRESCRIBED BY THE
COMMISSION AND SHALL REQUIRE THAT THE BAR CODE INCLUDE THE SERIAL NUMBER
OF THE GAME THE FLARE DESCRIBES. A MANUFACTURER SHALL ALSO AFFIX TO THE
OUTSIDE OF THE CONTAINER OR WRAPPING CONTAINING A DEAL OF BELL JAR TICK-
ETS A BAR CODE PROVIDING ALL INFORMATION PRESCRIBED BY THE COMMISSION
AND CONTAINING THE SAME INFORMATION AS THE BAR CODE AFFIXED TO THE
FLARE. THE COMMISSION MAY ALSO PRESCRIBE ADDITIONAL BAR CODE REQUIRE-
MENTS. NO PERSON MAY ALTER THE BAR CODE THAT APPEARS ON THE FLARE OR ON
THE OUTSIDE OF THE CONTAINER OR WRAPPING CONTAINING A DEAL OF BELL JAR
TICKETS. POSSESSION OF A DEAL OF BELL JAR TICKETS THAT HAS A BAR CODE
DIFFERENT FROM THE SERIAL NUMBER OF THE DEAL INSIDE THE CONTAINER OR
WRAPPING AS EVIDENCED ON THE FLARE IS PRIMA FACIE EVIDENCE THAT THE
POSSESSOR HAS ALTERED THE BAR CODE ON THE CONTAINER OR WRAPPING.
3. BELL JAR FLARES. (A) A MANUFACTURER SHALL NOT SHIP OR CAUSE TO BE
SHIPPED INTO THIS STATE ANY DEAL OF BELL JAR TICKETS THAT DOES NOT HAVE
ITS OWN INDIVIDUAL FLARE AS REQUIRED FOR THAT DEAL BY RULE OF THE
COMMISSION. A PERSON OTHER THAN A LICENSED MANUFACTURER SHALL NOT MANU-
FACTURE, ALTER, MODIFY OR OTHERWISE CHANGE A FLARE FOR A DEAL OF BELL
JAR TICKETS EXCEPT AS AUTHORIZED BY THIS TITLE OR RULES AND REGULATIONS
PROMULGATED BY THE COMMISSION.
(B) THE FLARE FOR EACH DEAL OF BELL JAR TICKETS SOLD BY A MANUFACTURER
IN THIS STATE SHALL BE PLACED INSIDE THE WRAPPING OF THE DEAL THAT THE
FLARE DESCRIBES.
(C) THE BAR CODE AFFIXED TO THE FLARE OF EACH BELL JAR GAME SHALL BEAR
THE SERIAL NUMBER OF SUCH GAME AS PRESCRIBED BY THE COMMISSION.
(D) THE FLARE OF EACH BELL JAR GAME SHALL HAVE AFFIXED A BAR CODE THAT
PROVIDES:
(1) THE GAME CODE;
(2) THE SERIAL NUMBER OF THE GAME;
(3) THE NAME OF THE MANUFACTURER; AND
(4) OTHER INFORMATION THE COMMISSION BY RULE MAY REQUIRE.
THE SERIAL NUMBER INCLUDED ON THE BAR CODE SHALL BE THE SAME AS THE
SERIAL NUMBER OF THE TICKETS INCLUDED IN THE DEAL. A MANUFACTURER WHO
MANUFACTURES A DEAL OF BELL JAR TICKETS SHALL AFFIX TO THE OUTSIDE OF
S. 2009 145 A. 3009
THE CONTAINER OR WRAPPING CONTAINING THE BELL JAR TICKETS THE SAME BAR
CODE THAT IS AFFIXED TO THE FLARE FOR THAT DEAL.
(E) NO PERSON SHALL ALTER THE BAR CODE THAT APPEARS ON THE OUTSIDE OF
A CONTAINER OR WRAPPING CONTAINING A DEAL OF BELL JAR TICKETS.
POSSESSION OF A DEAL OF BELL JAR TICKETS THAT HAS A BAR CODE DIFFERENT
FROM THE BAR CODE OF THE DEAL INSIDE THE CONTAINER OR WRAPPING IS PRIMA
FACIE EVIDENCE THAT THE POSSESSOR HAS ALTERED THE BAR CODE ON THE BOX.
4. REPORTS OF SALES. A MANUFACTURER WHO SELLS BELL JAR TICKETS FOR
RESALE IN THIS STATE SHALL FILE WITH THE COMMISSION, ON A FORM
PRESCRIBED BY THE COMMISSION, A REPORT OF ALL BELL JAR TICKETS SOLD TO
DISTRIBUTORS IN THE STATE. THE REPORT SHALL BE FILED QUARTERLY ON OR
BEFORE THE TWENTIETH DAY OF THE MONTH SUCCEEDING THE END OF THE QUARTER
IN WHICH THE SALE WAS MADE. THE COMMISSION MAY REQUIRE THAT THE REPORT
BE SUBMITTED VIA ELECTRONIC MEDIA OR ELECTRONIC DATA TRANSFER.
5. INSPECTION. THE COMMISSION MAY INSPECT THE PREMISES, BOOKS,
RECORDS, AND INVENTORY OF A MANUFACTURER WITHOUT NOTICE DURING THE
NORMAL BUSINESS HOURS OF THE MANUFACTURER.
§ 1576. DISTRIBUTOR OF BELL JARS; REPORTS AND RECORDS. 1. DISTRIB-
UTION; DISTRIBUTORS. ANY DISTRIBUTOR LICENSED IN ACCORDANCE WITH SECTION
FIFTEEN HUNDRED FIFTY-FIVE OF THIS TITLE TO DISTRIBUTE BELL JAR TICKETS
SHALL PURCHASE BELL JAR TICKETS ONLY FROM LICENSED MANUFACTURERS AND MAY
MANUFACTURE COIN BOARDS AND MERCHANDISE BOARDS ONLY AS AUTHORIZED IN
SUBDIVISION TWO OF THIS SECTION. LICENSED DISTRIBUTORS OF BELL JAR TICK-
ETS SHALL SELL SUCH TICKETS ONLY TO NOT-FOR-PROFIT, CHARITABLE OR RELI-
GIOUS ORGANIZATIONS REGISTERED BY THE COMMISSION. ANY LICENSED DISTRIBU-
TOR WHO WILLFULLY VIOLATES THE PROVISIONS OF THIS SECTION SHALL:
(A) UPON SUCH FIRST OFFENSE, HAVE ITS LICENSE SUSPENDED FOR A PERIOD
OF THIRTY DAYS;
(B) UPON SUCH SECOND OFFENSE, PARTICIPATE IN A HEARING TO BE CONDUCTED
BY THE COMMISSION, AND SURRENDER ITS LICENSE FOR SUCH PERIOD AS RECOM-
MENDED BY THE COMMISSION; AND
(C) UPON SUCH THIRD OR SUBSEQUENT OFFENSE, HAVE ITS LICENSE SUSPENDED
FOR A PERIOD OF ONE YEAR AND SHALL BE GUILTY OF A CLASS E FELONY. ANY
UNLICENSED DISTRIBUTOR WHO VIOLATES THIS SECTION SHALL BE GUILTY OF A
CLASS E FELONY.
2. COIN BOARDS AND MERCHANDISE BOARDS. DISTRIBUTORS OF BELL JAR TICK-
ETS MAY MANUFACTURE COIN BOARDS AND MERCHANDISE BOARDS ONLY IF SUCH
BOARDS HAVE BEEN APPROVED BY THE COMMISSION AND HAVE A BAR CODE AFFIXED
TO THEM SETTING FORTH ALL INFORMATION REQUIRED BY THE COMMISSION. EXCEPT
THAT FOR COIN BOARDS AND MERCHANDISE BOARDS, DELINEATION OF THE PRIZE OR
PRIZE VALUE NEED NOT BE INCLUDED ON THE GAME TICKET SOLD IN CONJUNCTION
WITH A COIN BOARD OR MERCHANDISE BOARD. IN LIEU OF SUCH REQUIREMENT,
THE DISTRIBUTOR SHALL BE REQUIRED TO DISCLOSE THE PRIZE LEVELS AND THE
NUMBER OF WINNERS AT EACH LEVEL AND SHALL PRINT CLEARLY ON THE GAME
TICKET THAT A TICKET HOLDER MAY OBTAIN THE PRIZE AND PRIZE VALUE FOR
EACH PRIZE LEVEL BY REFERENCING THE FLARE. SUCH COIN BOARDS SHALL BE
SOLD ONLY BY LICENSED DISTRIBUTORS TO LICENSED AUTHORIZED ORGANIZATIONS
REGISTERED BY THE COMMISSION IN ACCORDANCE WITH THE PROVISIONS OF THIS
TITLE.
3. BUSINESS RECORDS. A DISTRIBUTOR SHALL KEEP AT EACH PLACE OF BUSI-
NESS COMPLETE AND ACCURATE RECORDS FOR THAT PLACE OF BUSINESS, INCLUDING
ITEMIZED INVOICES OF BELL JAR TICKETS HELD AND PURCHASED. THE RECORDS
MUST SHOW THE NAMES AND ADDRESSES OF PURCHASERS, THE INVENTORY AT THE
CLOSE OF EACH PERIOD FOR WHICH A RETURN IS REQUIRED, ALL BELL JAR TICK-
ETS ON HAND AND OTHER PERTINENT PAPERS AND DOCUMENTS RELATING TO THE
PURCHASE, SALE OR DISPOSITION OF BELL JAR TICKETS AS MAY BE REQUIRED BY
S. 2009 146 A. 3009
THE COMMISSION. BOOKS, RECORDS, ITEMIZED INVOICES AND OTHER PAPERS AND
DOCUMENTS REQUIRED BY THIS SECTION SHALL BE KEPT FOR A PERIOD OF AT
LEAST FOUR YEARS AFTER THE DATE OF THE DOCUMENTS, OR THE DATE OF THE
ENTRIES APPEARING IN THE RECORDS, UNLESS THE COMMISSION AUTHORIZES IN
WRITING THEIR DESTRUCTION OR DISPOSAL AT AN EARLIER DATE. A PERSON WHO
VIOLATES THIS SECTION SHALL BE GUILTY OF A MISDEMEANOR.
4. SALES RECORDS. A DISTRIBUTOR SHALL MAINTAIN A RECORD OF ALL BELL
JAR TICKETS THAT IT SELLS. THE RECORD SHALL INCLUDE, BUT NEED NOT BE
LIMITED TO:
(A) THE IDENTITY OF THE MANUFACTURER FROM WHOM THE DISTRIBUTOR
PURCHASED THE PRODUCT;
(B) THE SERIAL NUMBER OF THE PRODUCT;
(C) THE NAME, ADDRESS AND LICENSE OR EXEMPT PERMIT NUMBER OF THE
ORGANIZATION OR PERSON TO WHICH THE SALE WAS MADE;
(D) THE DATE OF THE SALE;
(E) THE NAME OF THE PERSON WHO ORDERED THE PRODUCT;
(F) THE NAME OF THE PERSON WHO RECEIVED THE PRODUCT;
(G) THE TYPE OF PRODUCT;
(H) THE SERIAL NUMBER OF THE PRODUCT;
(I) THE ACCOUNT NUMBER IDENTIFYING THE SALE FROM THE MANUFACTURER TO
DISTRIBUTOR AND THE ACCOUNT NUMBER IDENTIFYING THE SALE FROM THE
DISTRIBUTOR TO THE LICENSED ORGANIZATION; AND
(J) THE NAME, FORM NUMBER OR OTHER IDENTIFYING INFORMATION FOR EACH
GAME.
5. INVOICES. A DISTRIBUTOR SHALL SUPPLY WITH EACH SALE OF A BELL JAR
PRODUCT AN ITEMIZED INVOICE SHOWING:
(A) THE DISTRIBUTOR'S NAME AND ADDRESS;
(B) THE PURCHASER'S NAME, ADDRESS, AND LICENSE NUMBER;
(C) THE DATE OF THE SALE;
(D) THE ACCOUNT NUMBER IDENTIFYING THE SALE FROM THE MANUFACTURER TO
DISTRIBUTOR;
(E) THE ACCOUNT NUMBER IDENTIFYING THE SALE FROM THE DISTRIBUTOR TO
THE LICENSED ORGANIZATION; AND
(F) THE DESCRIPTION OF THE DEALS, INCLUDING THE FORM NUMBER, THE SERI-
AL NUMBER AND THE IDEAL GROSS FROM EVERY DEAL OF BELL JAR OR SIMILAR
GAME.
6. REPORTS. A DISTRIBUTOR SHALL REPORT QUARTERLY TO THE COMMISSION, ON
A FORM PRESCRIBED BY THE COMMISSION, ITS SALES OF EACH TYPE OF BELL JAR
DEAL OR TICKETS. THIS REPORT SHALL BE FILED QUARTERLY ON OR BEFORE THE
TWENTIETH DAY OF THE MONTH SUCCEEDING THE END OF THE QUARTER IN WHICH
THE SALE WAS MADE. THE COMMISSION MAY REQUIRE THAT A DISTRIBUTOR SUBMIT
THE QUARTERLY REPORT AND INVOICES REQUIRED BY THIS SECTION VIA ELECTRON-
IC MEDIA OR ELECTRONIC DATA TRANSFER.
7. THE COMMISSION MAY INSPECT THE PREMISES, BOOKS, RECORDS AND INVEN-
TORY OF A DISTRIBUTOR WITHOUT NOTICE DURING THE NORMAL BUSINESS HOURS OF
THE DISTRIBUTOR.
8. CERTIFIED PHYSICAL INVENTORY. THE COMMISSION MAY, UPON REQUEST,
REQUIRE A DISTRIBUTOR TO FURNISH A CERTIFIED PHYSICAL INVENTORY OF ALL
BELL JAR TICKETS IN STOCK. THE INVENTORY SHALL CONTAIN THE INFORMATION
REQUESTED BY THE COMMISSION.
§ 1577. TRANSFER RESTRICTIONS. NOT-FOR-PROFIT, CHARITABLE OR RELIGIOUS
ORGANIZATIONS AUTHORIZED TO SELL BELL JAR TICKETS IN ACCORDANCE WITH
THIS TITLE SHALL PURCHASE BELL JAR TICKETS ONLY FROM DISTRIBUTORS
LICENSED BY THE COMMISSION. NO NOT-FOR-PROFIT, CHARITABLE OR RELIGIOUS
ORGANIZATION SHALL SELL, DONATE OR OTHERWISE TRANSFER BELL JAR TICKETS
TO ANY OTHER NOT-FOR-PROFIT, CHARITABLE OR RELIGIOUS ORGANIZATION.
S. 2009 147 A. 3009
§ 1578. BELL JARS COMPLIANCE AND ENFORCEMENT. 1. IN THE CASE OF BELL
JARS, THE LICENSEE, UPON FILING FINANCIAL STATEMENTS OF BELL JAR OPER-
ATIONS, SHALL ALSO TENDER TO THE COMMISSION A SUM IN THE AMOUNT OF FIVE
PERCENT OF THE NET PROCEEDS FROM THE SALE OF BELL JAR TICKETS, SEAL
CARDS, MERCHANDISE BOARDS AND COIN BOARDS, IF ANY, FOR THAT PORTION OF
LICENSE PERIOD COVERED BY SUCH STATEMENT.
2. UNSOLD TICKETS OF THE BELL JAR DEAL SHALL BE KEPT ON FILE BY THE
SELLING ORGANIZATION FOR INSPECTION BY THE COMMISSION FOR A PERIOD OF
ONE YEAR FOLLOWING THE DATE UPON WHICH THE RELEVANT FINANCIAL STATEMENT
WAS RECEIVED BY THE COMMISSION.
3. ONE-HALF OF ONE PERCENT OF THE FEE SET FORTH IN SUBDIVISION ONE OF
THIS SECTION RECEIVED FROM AUTHORIZED VOLUNTEER FIRE COMPANIES SHALL BE
PAID TO THE NEW YORK STATE EMERGENCY SERVICES REVOLVING LOAN ACCOUNT
ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN-PP OF THE STATE FINANCE
LAW.
4. THE COMMISSION SHALL SUBMIT TO THE DIRECTOR OF THE DIVISION OF THE
BUDGET AN ANNUAL PLAN THAT DETAILS THE AMOUNT OF MONEY THE COMMISSION
DEEMS NECESSARY TO MAINTAIN OPERATIONS, COMPLIANCE AND ENFORCEMENT OF
THE PROVISIONS OF THIS TITLE AND THE COLLECTION OF THE LICENSE FEE
AUTHORIZED BY THIS SECTION. CONTINGENT UPON THE APPROVAL OF THE DIREC-
TOR OF THE DIVISION OF THE BUDGET, THE COMMISSION SHALL PAY INTO AN
ACCOUNT, TO BE KNOWN AS THE BELL JAR COLLECTION ACCOUNT, UNDER THE JOINT
CUSTODY OF THE COMPTROLLER AND THE COMMISSION, THE TOTAL AMOUNT OF
LICENSE FEES COLLECTED PURSUANT TO THIS SECTION. WITH THE APPROVAL OF
THE DIRECTOR OF THE DIVISION OF THE BUDGET, MONIES TO BE USED TO MAIN-
TAIN THE OPERATIONS NECESSARY TO ENFORCE THE PROVISIONS OF THIS TITLE
AND THE COLLECTION OF THE LICENSE FEE IMPOSED BY THIS SECTION SHALL BE
PAID OUT OF SUCH ACCOUNT ON THE AUDIT AND WARRANT OF THE COMPTROLLER ON
VOUCHERS CERTIFIED OR APPROVED BY THE DIRECTOR OF THE DIVISION OF THE
BUDGET OR THE DIRECTOR'S DULY DESIGNATED OFFICIAL. THOSE MONIES THAT ARE
NOT USED TO MAINTAIN OPERATIONS NECESSARY TO ENFORCE THE PROVISIONS OF
THIS TITLE AND THE COLLECTION OF THE LICENSE FEE AUTHORIZED BY THIS
SECTION SHALL BE PAID OUT OF SUCH AMOUNT ON THE AUDIT AND WARRANT OF THE
STATE COMPTROLLER AND SHALL BE CREDITED TO THE GENERAL FUND.
§ 3. Section 129 of the racing, pari-mutuel wagering and breeding law,
as added by section 1 of part A of chapter 60 of the laws of 2012, is
amended to read as follows:
§ 129. Construction of other laws or provisions. Unless the context
[shall require] REQUIRES otherwise, the terms "division of the lottery",
"state quarter horse racing commission", "state racing commission",
"state harness racing commission", "state racing and wagering board" or
"board" wherever occurring in any of the provisions of this chapter or
of any other law, or, in any official books, records, instruments, rules
or papers, shall hereafter mean and refer to the state gaming commission
created by section one hundred two of this article. The provisions of
article three of this chapter shall be inapplicable to article two of
this chapter; and the provisions of such article two shall be inapplica-
ble to such article three, except that section two hundred thirty-one of
such article two shall apply to such article three. UNLESS THE CONTEXT
REQUIRES OTHERWISE, ANY REFERENCE TO "ARTICLE 19-B OF THE EXECUTIVE LAW"
WHEREVER OCCURRING IN ANY LAW, OR, IN ANY OFFICIAL BOOKS, RECORDS,
INSTRUMENTS, RULES OR PAPERS, SHALL HEREAFTER MEAN AND REFER TO TITLES
ONE AND TWO OF ARTICLE FIFTEEN OF THIS CHAPTER. UNLESS THE CONTEXT
REQUIRES OTHERWISE, ANY REFERENCE TO "ARTICLE 14-H OF THE GENERAL MUNIC-
IPAL LAW" WHEREVER OCCURRING IN ANY LAW, OR, IN ANY OFFICIAL BOOKS,
RECORDS, INSTRUMENTS, RULES OR PAPERS, SHALL HEREAFTER MEAN AND REFER TO
S. 2009 148 A. 3009
TITLES ONE AND THREE OF ARTICLE FIFTEEN OF THIS CHAPTER. UNLESS THE
CONTEXT REQUIRES OTHERWISE, ANY REFERENCE TO "ARTICLE 9-A OF THE GENERAL
MUNICIPAL LAW" WHEREVER OCCURRING IN ANY LAW, OR, IN ANY OFFICIAL BOOKS,
RECORDS, INSTRUMENTS, RULES OR PAPERS, SHALL HEREAFTER MEAN AND REFER TO
TITLES ONE AND FOUR OF ARTICLE FIFTEEN OF THIS CHAPTER.
§ 4. Paragraph (b) of subdivision 2 of section 103 of the racing,
pari-mutuel wagering and breeding law, as added by section 1 of part A
of chapter 60 of the laws of 2012, is amended as follows:
(b) Charitable gaming. The division of charitable gaming shall be
responsible for the supervision and administration of the games of
chance licensing law, bingo licensing law and bingo control law as
prescribed by [articles nine-A and fourteen-H of the general municipal
law and nineteen-B of the executive law] ARTICLE FIFTEEN OF THIS
CHAPTER.
§ 5. Subdivision 1 and paragraph (b) of subdivision 3 of section 151
of the social services law, subdivision 1 as amended and paragraph (b)
of subdivision 3 as added by section 2 of part F of chapter 58 of the
laws of 2014, are amended to read as follows:
1. Unauthorized transactions. Except as otherwise provided in subdivi-
sion two of this section, no person, firm, establishment, entity, or
corporation (a) licensed under the provisions of the alcoholic beverage
control law to sell liquor and/or wine at retail for off-premises
consumption; (b) licensed to sell beer at wholesale and also authorized
to sell beer at retail for off-premises consumption; (c) licensed or
authorized to conduct pari-mutuel wagering activity under the racing,
pari-mutuel wagering and breeding law; (d) licensed to participate in
charitable gaming under [article fourteen-H of the general municipal]
TITLE THREE OF ARTICLE FIFTEEN OF THE RACING, PARI-MUTUEL WAGERING AND
BREEDING law; (e) licensed to participate in the operation of a video
lottery facility under section one thousand six hundred seventeen-a of
the tax law; (f) licensed to operate a gaming facility under section
[one thousand three] THIRTEEN hundred eleven of the racing, pari-mutuel
wagering and breeding law; or (g) providing adult-oriented entertainment
in which performers disrobe or perform in an unclothed state for enter-
tainment, or making available the venue in which performers disrobe or
perform in an unclothed state for entertainment, shall cash or accept
any public assistance check or electronic benefit transfer device issued
by a public welfare official or department, or agent thereof, as and for
public assistance.
(b) A violation of the provisions of subdivision one of this section
by any person, corporation or entity licensed to operate a gaming facil-
ity under section one thousand three hundred eleven of the racing, pari-
mutuel wagering and breeding law; licensed under section one thousand
six hundred seventeen-a of the tax law to participate in the operation
of a video lottery facility; licensed or authorized to conduct pari-mu-
tuel wagering under the racing, pari-mutuel wagering and breeding law;
or licensed to participate in charitable gaming under [article four-
teen-H of the general municipal] TITLE THREE OF ARTICLE FIFTEEN OF THE
RACING, PARI-MUTUEL WAGERING AND BREEDING law, shall subject such
person, corporation or entity to disciplinary action pursuant to section
one hundred four of the racing, pari-mutuel wagering and breeding law
and section one thousand six hundred seven of the tax law, which may
include revocation, cancellation or suspension of such license or
authorization.
S. 2009 149 A. 3009
§ 6. Paragraph 3 of subdivision (c) of section 290 of the tax law, as
amended by chapter 547 of the laws of 1987, is amended to read as
follows:
(3) Any income derived from the conduct of games of chance or from
rental of premises for the conduct of games of chance pursuant to a
license granted under TITLE FOUR OF article [nine-A of the general
municipal] FIFTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING law
shall not be subject to tax under this article.
§ 7. This act shall take effect on the ninetieth day after it shall
have become a law.
PART NN
Section 1. Section 207 of the racing, pari-mutuel wagering and breed-
ing law, as added by chapter 18 of the laws of 2008, paragraphs a, b and
c of subdivision 1 as added by section 4, paragraph c of subdivision 1
as added by section 5 and subdivision 5 as added by section 6 of chapter
457 of the laws of 2012, and paragraph d of subdivision 1 as amended by
section 1 of part C of chapter 73 of the laws of 2016, is amended to
read as follows:
§ 207. Board of directors of a franchised corporation. 1. a. The
board of directors, to be called the New York racing association [reor-
ganization] board, shall consist of [seventeen] FIFTEEN members[, five
of whom shall be elected by the present class A directors of The New
York Racing Association, Inc., eight to be] WHO SHALL HAVE EQUAL VOTING
RIGHTS: SIX appointed by the governor[, two to] EACH OF WHOM MUST BE A
RESIDENT OF NEW YORK STATE, AND ONE OF WHOM SHALL be appointed [by] ON
THE RECOMMENDATION OF the temporary president of the senate and [two to]
ONE OF WHOM SHALL be appointed [by] ON THE RECOMMENDATION OF the speaker
of the assembly; EIGHT APPOINTED BY THE EXECUTIVE COMMITTEE OF THE NEW
YORK RACING ASSOCIATION REORGANIZATION BOARD OF DIRECTORS CONSTITUTED
PURSUANT TO CHAPTER FOUR HUNDRED FIFTY-SEVEN OF THE LAWS OF TWO THOUSAND
TWELVE, WHICH SHALL CONTINUE TO EXIST UNTIL SUCH TIME AS THE APPOINT-
MENTS REQUIRED HEREUNDER ARE MADE; AND ONE WHO SHALL BE THE PRESIDENT
AND CHIEF EXECUTIVE OFFICER OF THE FRANCHISED CORPORATION, EX OFFICIO
AND WITHOUT TERM LIMITATION. THE NEW YORK RACING ASSOCIATION BOARD SHALL
HAVE TWO EX OFFICIO, NON-VOTING MEMBERS: ONE APPOINTED BY THE NEW YORK
THOROUGHBRED BREEDERS, INC., AND ONE APPOINTED BY THE NEW YORK THOROUGH-
BRED HORSEMEN'S ASSOCIATION REPRESENTING AT LEAST FIFTY-ONE PERCENT OF
THE HORSEMEN USING THE FACILITIES OF THE FRANCHISED CORPORATION. THE NEW
YORK RACING ASSOCIATION BOARD MAY INCLUDE ADDITIONAL EX OFFICIO, NON-
VOTING MEMBERS AS APPOINTED PURSUANT TO A MAJORITY VOTE OF THE BOARD.
(i) The governor shall nominate a member to serve as chair FOR AN
INITIAL TERM OF THREE YEARS, WHO SHALL SERVE AT THE PLEASURE OF THE
GOVERNOR, subject to confirmation by majority vote of the board [of
directors. All non-ex officio members shall have equal voting rights].
THEREAFTER, THE BOARD SHALL ELECT ITS CHAIR, WHO SHALL SERVE AT THE
PLEASURE OF THE BOARD, FROM AMONG ITS MEMBERS.
(ii) THE TERM OF VOTING MEMBERSHIP ON THE NEW YORK RACING ASSOCIATION
BOARD SHALL BE THREE YEARS. INDIVIDUAL APPOINTEES SHALL BE LIMITED TO
SERVING AS A VOTING MEMBER THE LESSER OF THREE TERMS OR NINE YEARS.
NOTWITHSTANDING THE FOREGOING, THE INITIAL TERM OF TWO MEMBERS APPOINTED
BY THE GOVERNOR AND THREE MEMBERS APPOINTED BY THE NEW YORK RACING ASSO-
CIATION REORGANIZATION BOARD SHALL EXPIRE MARCH THIRTY-FIRST, TWO THOU-
SAND EIGHTEEN; THE INITIAL TERM OF TWO MEMBERS APPOINTED BY THE NEW YORK
RACING ASSOCIATION REORGANIZATION BOARD AND THREE MEMBERS APPOINTED BY
S. 2009 150 A. 3009
THE GOVERNOR SHALL EXPIRE ON MARCH THIRTY-FIRST, TWO THOUSAND NINETEEN;
AND THE REMAINING MEMBERS SHALL SERVE FULL THREE-YEAR TERMS.
(III) In the event of a member vacancy occurring by death, resignation
or otherwise, the respective appointing [officer or officers] AUTHORITY
shall appoint a successor who shall hold office for the unexpired
portion of the term. [A vacancy from the members appointed from the
present board of The New York Racing Association, Inc., shall be filled
by the remaining such members] IN THE CASE OF VACANCIES AMONG MEMBERS
APPOINTED BY THE EXECUTIVE COMMITTEE OF THE NEW YORK RACING ASSOCIATION
REORGANIZATION BOARD OF DIRECTORS CONSTITUTED PURSUANT TO CHAPTER FOUR
HUNDRED FIFTY-SEVEN OF THE LAWS OF TWO THOUSAND TWELVE, APPOINTMENTS
THEREAFTER SHALL BE MADE BY THE EXECUTIVE COMMITTEE OF THE NEW YORK
RACING ASSOCIATION BOARD AS CONSTITUTED BY THE CHAPTER OF THE LAWS OF
TWO THOUSAND SEVENTEEN THAT AMENDED THIS SECTION.
b. The franchised corporation shall establish a compensation committee
to fix salary guidelines, such guidelines to be consistent with an oper-
ation of other first class thoroughbred racing operations in the United
States; a finance AND AUDIT committee, to review annual operating and
capital budgets for each of the three racetracks; a nominating AND
GOVERNANCE committee, to nominate any new directors to be designated by
the franchised corporation to replace its existing directors AND BE
RESPONSIBLE FOR ALL ISSUES AFFECTING THE GOVERNANCE OF THE FRANCHISED
CORPORATION; AN EQUINE SAFETY COMMITTEE; A RACING COMMITTEE TO ADDRESS
ALL ISSUES RELATED TO RACING OPERATIONS; and an executive committee.
Each of the compensation, finance, nominating and executive committees
shall include at least one [of] PUBLIC MEMBER FROM AMONG the directors
appointed by the governor[, and the executive committee shall include at
least one of the directors appointed by the temporary president of the
senate and at least one of the directors appointed by the speaker of the
assembly].
[b. In addition to these voting members, the board shall have two ex
officio members to advise on critical economic and equine health
concerns of the racing industry, one appointed by the New York Thorough-
bred Breeders Inc., and one appointed by the New York thoroughbred
horsemen's association (or such other entity as is certified and
approved pursuant to section two hundred twenty-eight of this article).
c. All directors shall serve at the pleasure of their appointing
authority.]
c. Upon the effective date of this paragraph, the structure of the NEW
YORK RACING ASSOCIATION board [of the franchised corporation] shall be
deemed to be incorporated within and made part of the certificate of
incorporation of the franchised corporation, and no amendment to such
certificate of incorporation shall be necessary to give effect to any
such provision, and any provision contained within such certificate
inconsistent in any manner shall be superseded by the provisions of this
section. Such board shall, however, make appropriate conforming changes
to all governing documents of the franchised corporation including but
not limited to corporate by-laws. Following such conforming changes,
amendments to the by-laws of the franchised corporation shall [only] be
made ONLY by unanimous vote of the board.
[d. The board, which shall become effective upon appointment of a
majority of public members, shall terminate five years from its date of
creation.]
2. Members of the NEW YORK RACING ASSOCIATION board [of directors]
shall serve without compensation for their services, but [publicly
appointed members of the board] shall be entitled to reimbursement from
S. 2009 151 A. 3009
the franchised corporation for actual and necessary expenses incurred in
the performance of their [official] duties FOR THE BOARD.
3. Members of the NEW YORK RACING ASSOCIATION board [of directors],
except as otherwise provided by law, may engage in PUBLIC OR private
employment, or in a profession or business, however no member shall have
any direct or indirect economic interest in any video lottery gaming
facility, excluding incidental benefits based on purses or awards won in
the ordinary conduct of racing operations, or any direct or indirect
interest in any development undertaken at the racetracks of the state
racing franchise.
4. The affirmative vote of a majority of members of the NEW YORK
RACING ASSOCIATION board [of directors] shall be necessary for the tran-
saction of any business or the exercise of any power or function of the
franchised corporation. The franchised corporation may delegate on an
annual basis to one or more of its members, or its officers, agents or
employees, such powers and duties as it may deem proper.
5. Each voting member of the NEW YORK RACING ASSOCIATION board [of
directors] of the franchised corporation shall annually make a written
disclosure to [the] SUCH board of any interest held by the director,
such director's spouse or unemancipated child, in any entity undertaking
business in the racing or breeding industry. Such interest disclosure
shall be promptly updated, in writing, in the event of any material
change.
The NEW YORK RACING ASSOCIATION board shall establish parameters for
the reporting and disclosure of such director interests.
6. EACH VOTING MEMBER OF THE NEW YORK RACING ASSOCIATION BOARD
APPOINTED BY THE EXECUTIVE COMMITTEE OF THE NEW YORK RACING ASSOCIATION
REORGANIZATION BOARD OF DIRECTORS SHALL SEEK A RACETRACK MANAGEMENT
LICENSE ISSUED BY THE GAMING COMMISSION, ANY FEES FOR WHICH SHALL BE
WAIVED BY THE COMMISSION. NO VOTING MEMBER OF THE BOARD REQUIRED BY THE
FOREGOING TO SEEK A RACETRACK MANAGEMENT LICENSE MAY VOTE ON ANY BOARD
MATTER UNTIL SUCH LICENSE IS ISSUED.
7. FOR PURPOSES OF SECTION TWO HUNDRED TWELVE OF THIS ARTICLE, THE
ESTABLISHMENT OF THE NEW YORK RACING ASSOCIATION, INC. BOARD OF DIREC-
TORS UNDER THIS SECTION SHALL NOT CONSTITUTE THE ASSUMPTION OF THE FRAN-
CHISE BY A SUCCESSOR ENTITY.
§ 2. Subparagraphs (ii), (iii), (vii) and (xvii) of paragraph a of
subdivision 8 of section 212 of the racing, pari-mutuel wagering and
breeding law, as added by chapter 18 of the laws of 2008, are amended,
subparagraph (xviii) is renumbered subparagraph (xx) and two new subpar-
agraphs (xviii) and (xix) are added to read as follows:
(ii) monitor and enforce compliance with definitive documents that
comprise the franchise agreement between the franchised corporation and
the state of New York governing the franchised corporation's operation
of thoroughbred racing and pari-mutuel wagering at the racetracks. The
franchise agreement shall contain objective performance standards that
shall allow contract review in a manner consistent with this chapter.
The franchise oversight board shall notify the franchised corporation
authorized by this chapter in writing of any material breach of the
performance standards or repeated non-material breaches which the fran-
chise oversight board may determine collectively constitute a material
breach of the performance standards. Prior to taking any action against
such franchised corporation, the franchise oversight board shall provide
the franchised corporation with the reasonable opportunity to cure any
material breach of the performance standards or repeated non-material
breaches which the franchise oversight board may determine collectively
S. 2009 152 A. 3009
constitute a material breach of the performance standards. Upon a writ-
ten finding of a material breach of the performance standards or
repeated non-material breaches which the franchise oversight board may
determine collectively constitute a material breach of the performance
standards, the franchise oversight board may recommend that the fran-
chise agreement be terminated. The franchise oversight board shall refer
such recommendation to the [racing and wagering board] COMMISSION for a
hearing conducted pursuant to section two hundred forty-five of this
article for a determination of whether to terminate the franchise agree-
ment with the franchised corporation;
(iii) oversee, monitor and review all significant transactions and
operations of the franchised corporation authorized by this chapter;
provided, however, that nothing in this section shall be deemed to
reduce, diminish or impede the authority of the [state racing and wager-
ing board] COMMISSION to, pursuant to article one of this chapter,
determine and enforce compliance by the franchised corporation with
terms of racing laws and regulations. Such oversight shall include, but
not be limited to:
(A) review and make recommendations concerning the annual operating
budgets of such franchised corporation;
(B) review and make recommendations concerning operating revenues and
the establishment of a financial plan;
(C) review and make recommendations concerning accounting, internal
control systems and security procedures;
(D) review such franchised corporation's revenue and expenditure
[polices] POLICIES which shall include collective bargaining agreements
management and employee compensation plans, vendor contracts and capital
improvement plans;
(E) review such franchise corporation's compliance with the laws,
rules and regulations applicable to its activities;
(F) make recommendations for establishing model governance principles
to improve accountability and transparency; and
(G) receive, review, approve or disapprove capital expense plans
submitted annually by the franchised corporation.
(vii) review and provide any recommendations on all simulcasting
contracts (buy and sell) that are also subject to prior approval of the
[racing and wagering board] COMMISSION;
(xvii) request and accept the assistance of any state agency, includ-
ing but not limited to, the [racing and wagering board, the division of
the lottery] COMMISSION, office of parks, recreation and historic pres-
ervation, the department of environmental conservation and the depart-
ment of taxation and finance, in obtaining information related to the
franchised corporation's compliance with the terms of the franchise
agreement;[and]
(XVIII) WHEN THE FRANCHISE OVERSIGHT BOARD DETERMINES THE FINANCIAL
POSITION OF THE FRANCHISED CORPORATION HAS DEVIATED MATERIALLY FROM THE
FRANCHISED CORPORATION'S FINANCIAL PLAN, OR OTHER SUCH RELATED DOCUMENTS
PROVIDED TO THE FRANCHISE OVERSIGHT BOARD, OR WHEN THE IMPLEMENTATION OF
SUCH PLAN WOULD, IN THE OPINION OF THE FRANCHISE OVERSIGHT BOARD, POSE A
SIGNIFICANT RISK TO THE LIQUIDITY OF THE FRANCHISED CORPORATION, IN ANY
ORDER OR COMBINATION:
(A) HIRE, AT THE EXPENSE OF THE FRANCHISED CORPORATION, AN INDEPENDENT
FINANCIAL ADVISER TO EVALUATE THE FINANCIAL POSITION OF THE FRANCHISED
CORPORATION AND REPORT ON SUCH TO THE FRANCHISE OVERSIGHT BOARD; AND
S. 2009 153 A. 3009
(B) REQUIRE THE FRANCHISED CORPORATION TO SUBMIT FOR THE FRANCHISE
OVERSIGHT BOARD'S APPROVAL A CORRECTIVE ACTION PLAN ADDRESSING ANY
CONCERNS IDENTIFIED AS RISKS BY THE FRANCHISE OVERSIGHT BOARD.
(XIX) WHEN THE FRANCHISE OVERSIGHT BOARD FINDS THE FRANCHISED CORPO-
RATION HAS EXPERIENCED TWO CONSECUTIVE YEARS OF MATERIAL LOSSES DUE TO
CIRCUMSTANCES WITHIN THE CONTROL OF THE FRANCHISED CORPORATION, AS
DETERMINED BY THE FRANCHISE OVERSIGHT BOARD, THE BOARD MAY BY MAJORITY
VOTE REQUEST THE DIRECTOR OF THE BUDGET TO IMPOUND AND ESCROW RACING
SUPPORTING PAYMENTS ACCRUING TO THE BENEFIT OF THE FRANCHISED CORPO-
RATION UNTIL THE FRANCHISED CORPORATION ACHIEVES THE GOALS OF A BOARD-
APPROVED CORRECTIVE ACTION PLAN ADDRESSING CONCERNS IDENTIFIED BY THE
BOARD. THE DIRECTOR OF THE BUDGET MAY, UPON WARRANT OF THE FRANCHISE
OVERSIGHT BOARD, APPROVE THE USE OF WITHHELD RACING SUPPORT PAYMENTS
NECESSARY TO SATISFY FINANCIAL INSTRUMENTS USED TO FUND BOARD-APPROVAL
CAPITAL INVESTMENTS.
§ 3. Section 203 of the racing, pari-mutuel wagering and breeding law,
as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 203. Right to hold race meetings and races. 1. Any corporation
formed under the provisions of this article, if so claimed in its
certificate of organization, and if it shall comply with all the
provisions of this article, and any other corporation entitled to the
benefits and privileges of this article as hereinafter provided, shall
have the power and the right to hold one or more running race meetings
in each year, and to hold, maintain and conduct running races at such
meetings. At such running race meetings the corporation, or the owners
of horses engaged in such races, or others who are not participants in
the race, may contribute purses, prizes, premiums or stakes to be
contested for, but no person or persons other than the owner or owners
of a horse or horses contesting in a race shall have any pecuniary
interest in a purse, prize, premium or stake contested for in such race,
or be entitled to or receive any portion thereof after such race is
finished, and the whole of such purse, prize, premium or stake shall be
allotted in accordance with the terms and conditions of such race. Races
conducted by a franchised corporation shall be permitted only between
sunrise and sunset.
2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, A FRAN-
CHISED CORPORATION SHALL BE PERMITTED TO CONDUCT RACES AFTER SUNSET AT
THE BELMONT PARK RACETRACK, BUT ONLY IF SUCH RACES CONCLUDE BEFORE ELEV-
EN O'CLOCK POST MERIDIAN. THE FRANCHISED CORPORATION SHALL COORDINATE
WITH A HARNESS RACING ASSOCIATION OR CORPORATION AUTHORIZED TO OPERATE
IN WESTCHESTER COUNTY TO ENSURE THAT THE STARTING TIMES OF ALL SUCH
RACES ARE STAGGERED.
3. A track first licensed after January first, nineteen hundred nine-
ty, shall not conduct the simulcasting of thoroughbred races within
district one, in accordance with article ten of this chapter on days
that a franchised corporation is not conducting a race meeting. In no
event shall thoroughbred races conducted by a track first licensed after
January first, nineteen hundred ninety be conducted after eight o'clock
post meridian.
§ 4. Subparagraph (i) of paragraph (d) of subdivision 1 of section 238
of the racing, pari-mutuel wagering and breeding law, as amended by
section 2 of part BB of chapter 60 of the laws of 2016, is amended to
read as follows:
(i) The pari-mutuel tax rate authorized by paragraph (a) of this
subdivision shall be effective so long as a franchised corporation noti-
S. 2009 154 A. 3009
fies the gaming commission by August fifteenth of each year that such
pari-mutuel tax rate is effective of its intent to conduct a race meet-
ing at Aqueduct racetrack during the months of December, January, Febru-
ary, March and April. For purposes of this paragraph such race meeting
shall consist of not less than ninety-five days of racing UNLESS OTHER-
WISE AGREED TO IN WRITING BY THE NEW YORK THOROUGHBRED BREEDERS INC.,
THE NEW YORK THOROUGHBRED HORSEMEN'S ASSOCIATION (OR SUCH OTHER ENTITY
AS IS CERTIFIED AND APPROVED PURSUANT TO SECTION TWO HUNDRED TWENTY-
EIGHT OF THIS ARTICLE) AND APPROVED BY THE COMMISSION. Not later than
May first of each year that such pari-mutuel tax rate is effective, the
gaming commission shall determine whether a race meeting at Aqueduct
racetrack consisted of the number of days as required by this paragraph.
In determining the number of race days, cancellation of a race day
because of an act of God that the gaming commission approves or because
of weather conditions that are unsafe or hazardous which the gaming
commission approves shall not be construed as a failure to conduct a
race day. Additionally, cancellation of a race day because of circum-
stances beyond the control of such franchised corporation for which the
gaming commission gives approval shall not be construed as a failure to
conduct a race day. If the gaming commission determines that the number
of days of racing as required by this paragraph have not occurred then
the pari-mutuel tax rate in paragraph (a) of this subdivision shall
revert to the pari-mutuel tax rates in effect prior to January first,
nineteen hundred ninety-five.
§ 5. This act shall take effect April 1, 2017; provided, however, that
section one of this act shall take effect upon the appointment of a
majority of board members; provided, further, that the state franchise
oversight board shall notify the legislative bill drafting commission
upon the occurrence of such appointments 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; provided further that the amendments to section
212 of the racing, pari-mutuel wagering and breeding law made by section
two of this act shall not affect the repeal of such section and shall be
deemed repealed therewith.
PART OO
Section 1. Paragraph (a) of subdivision 1 of section 1003 of the
racing, pari-mutuel wagering and breeding law, as amended by section 1
of part FF of chapter 60 of the laws of 2016, is amended to read as
follows:
(a) Any racing association or corporation or regional off-track
betting corporation, authorized to conduct pari-mutuel wagering under
this chapter, desiring to display the simulcast of horse races on which
pari-mutuel betting shall be permitted in the manner and subject to the
conditions provided for in this article may apply to the commission for
a license so to do. Applications for licenses shall be in such form as
may be prescribed by the commission and shall contain such information
or other material or evidence as the commission may require. No license
shall be issued by the commission authorizing the simulcast transmission
of thoroughbred races from a track located in Suffolk county. The fee
for such licenses shall be five hundred dollars per simulcast facility
and for account wagering licensees that do not operate either a simul-
cast facility that is open to the public within the state of New York or
S. 2009 155 A. 3009
a licensed racetrack within the state, twenty thousand dollars per year
payable by the licensee to the commission for deposit into the general
fund. Except as provided in this section, the commission shall not
approve any application to conduct simulcasting into individual or group
residences, homes or other areas for the purposes of or in connection
with pari-mutuel wagering. The commission may approve simulcasting into
residences, homes or other areas to be conducted jointly by one or more
regional off-track betting corporations and one or more of the follow-
ing: a franchised corporation, thoroughbred racing corporation or a
harness racing corporation or association; provided (i) the simulcasting
consists only of those races on which pari-mutuel betting is authorized
by this chapter at one or more simulcast facilities for each of the
contracting off-track betting corporations which shall include wagers
made in accordance with section one thousand fifteen, one thousand
sixteen and one thousand seventeen of this article; provided further
that the contract provisions or other simulcast arrangements for such
simulcast facility shall be no less favorable than those in effect on
January first, two thousand five; (ii) that each off-track betting
corporation having within its geographic boundaries such residences,
homes or other areas technically capable of receiving the simulcast
signal shall be a contracting party; (iii) the distribution of revenues
shall be subject to contractual agreement of the parties except that
statutory payments to non-contracting parties, if any, may not be
reduced; provided, however, that nothing herein to the contrary shall
prevent a track from televising its races on an irregular basis primari-
ly for promotional or marketing purposes as found by the commission. For
purposes of this paragraph, the provisions of section one thousand thir-
teen of this article shall not apply. Any agreement authorizing an
in-home simulcasting experiment commencing prior to May fifteenth, nine-
teen hundred ninety-five, may, and all its terms, be extended until June
thirtieth, two thousand [seventeen] EIGHTEEN; provided, however, that
any party to such agreement may elect to terminate such agreement upon
conveying written notice to all other parties of such agreement at least
forty-five days prior to the effective date of the termination, via
registered mail. Any party to an agreement receiving such notice of an
intent to terminate, may request the commission to mediate between the
parties new terms and conditions in a replacement agreement between the
parties as will permit continuation of an in-home experiment until June
thirtieth, two thousand [seventeen] EIGHTEEN; and (iv) no in-home simul-
casting in the thoroughbred special betting district shall occur without
the approval of the regional thoroughbred track.
§ 2. Subparagraph (iii) of paragraph d of subdivision 3 of section
1007 of the racing, pari-mutuel wagering and breeding law, as amended by
section 2 of part FF of chapter 60 of the laws of 2016, is amended to
read as follows:
(iii) Of the sums retained by a receiving track located in Westchester
county on races received from a franchised corporation, for the period
commencing January first, two thousand eight and continuing through June
thirtieth, two thousand [seventeen] EIGHTEEN, the amount used exclusive-
ly for purses to be awarded at races conducted by such receiving track
shall be computed as follows: of the sums so retained, two and one-half
percent of the total pools. Such amount shall be increased or decreased
in the amount of fifty percent of the difference in total commissions
determined by comparing the total commissions available after July twen-
ty-first, nineteen hundred ninety-five to the total commissions that
S. 2009 156 A. 3009
would have been available to such track prior to July twenty-first,
nineteen hundred ninety-five.
§ 3. The opening paragraph of subdivision 1 of section 1014 of the
racing, pari-mutuel wagering and breeding law, as amended by section 3
of part FF of chapter 60 of the laws of 2016, is amended to read as
follows:
The provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is conducting a race meet-
ing in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth, two thousand [seventeen] EIGHTEEN and on any day regardless
of whether or not a franchised corporation is conducting a race meeting
in Saratoga county at Saratoga thoroughbred racetrack after June thirti-
eth, two thousand [seventeen] EIGHTEEN. On any day on which a fran-
chised corporation has not scheduled a racing program but a thoroughbred
racing corporation located within the state is conducting racing, every
off-track betting corporation branch office and every simulcasting
facility licensed in accordance with section one thousand seven (that
have entered into a written agreement with such facility's represen-
tative horsemen's organization, as approved by the commission), one
thousand eight, or one thousand nine of this article shall be authorized
to accept wagers and display the live simulcast signal from thoroughbred
tracks located in another state or foreign country subject to the
following provisions:
§ 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
and breeding law, as amended by section 4 of part FF of chapter 60 of
the laws of 2016, is amended to read as follows:
1. The provisions of this section shall govern the simulcasting of
races conducted at harness tracks located in another state or country
during the period July first, nineteen hundred ninety-four through June
thirtieth, two thousand [seventeen] EIGHTEEN. This section shall super-
sede all inconsistent provisions of this chapter.
§ 5. The opening paragraph of subdivision 1 of section 1016 of the
racing, pari-mutuel wagering and breeding law, as amended by section 5
of part FF of chapter 60 of the laws of 2016, is amended to read as
follows:
The provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is not conducting a race
meeting in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth, two thousand [seventeen] EIGHTEEN. Every off-track betting
corporation branch office and every simulcasting facility licensed in
accordance with section one thousand seven that have entered into a
written agreement with such facility's representative horsemen's organ-
ization as approved by the commission, one thousand eight or one thou-
sand nine of this article shall be authorized to accept wagers and
display the live full-card simulcast signal of thoroughbred tracks
(which may include quarter horse or mixed meetings provided that all
such wagering on such races shall be construed to be thoroughbred races)
located in another state or foreign country, subject to the following
provisions; provided, however, no such written agreement shall be
required of a franchised corporation licensed in accordance with section
one thousand seven of this article:
§ 6. The opening paragraph of section 1018 of the racing, pari-mutuel
wagering and breeding law, as amended by section 6 of part FF of chapter
60 of the laws of 2016, is amended to read as follows:
S. 2009 157 A. 3009
Notwithstanding any other provision of this chapter, for the period
July twenty-fifth, two thousand one through September eighth, two thou-
sand [sixteen] SEVENTEEN, when a franchised corporation is conducting a
race meeting within the state at Saratoga Race Course, every off-track
betting corporation branch office and every simulcasting facility
licensed in accordance with section one thousand seven (that has entered
into a written agreement with such facility's representative horsemen's
organization as approved by the commission), one thousand eight or one
thousand nine of this article shall be authorized to accept wagers and
display the live simulcast signal from thoroughbred tracks located in
another state, provided that such facility shall accept wagers on races
run at all in-state thoroughbred tracks which are conducting racing
programs subject to the following provisions; provided, however, no such
written agreement shall be required of a franchised corporation licensed
in accordance with section one thousand seven of this article.
§ 7. Section 32 of chapter 281 of the laws of 1994, amending the
racing, pari-mutuel wagering and breeding law and other laws relating
to simulcasting, as amended by section 7 of part FF of chapter 60 of the
laws of 2016, is amended to read as follows:
§ 32. This act shall take effect immediately and the pari-mutuel tax
reductions in section six of this act shall expire and be deemed
repealed on July 1, [2017] 2018; provided, however, that nothing
contained herein shall be deemed to affect the application, qualifica-
tion, expiration, or repeal of any provision of law amended by any
section of this act, and such provisions shall be applied or qualified
or shall expire or be deemed repealed in the same manner, to the same
extent and on the same date as the case may be as otherwise provided by
law; provided further, however, that sections twenty-three and twenty-
five of this act shall remain in full force and effect only until May 1,
1997 and at such time shall be deemed to be repealed.
§ 8. Section 54 of chapter 346 of the laws of 1990, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting and the imposition of certain taxes, as amended by section
8 of part FF of chapter 60 of the laws of 2016, is amended to read as
follows:
§ 54. This act shall take effect immediately; provided, however,
sections three through twelve of this act shall take effect on January
1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
ing law, as added by section thirty-eight of this act, shall expire and
be deemed repealed on July 1, [2017] 2018; and section eighteen of this
act shall take effect on July 1, 2008 and sections fifty-one and fifty-
two of this act shall take effect as of the same date as chapter 772 of
the laws of 1989 took effect.
§ 9. Paragraph (a) of subdivision 1 of section 238 of the racing,
pari-mutuel wagering and breeding law, as amended by section 9 of part
FF of chapter 60 of the laws of 2016, is amended to read as follows:
(a) The franchised corporation authorized under this chapter to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets be presented for payment
before April first of the year following the year of their purchase,
less an amount which shall be established and retained by such fran-
chised corporation of between twelve to seventeen per centum of the
total deposits in pools resulting from on-track regular bets, and four-
teen to twenty-one per centum of the total deposits in pools resulting
from on-track multiple bets and fifteen to twenty-five per centum of the
S. 2009 158 A. 3009
total deposits in pools resulting from on-track exotic bets and fifteen
to thirty-six per centum of the total deposits in pools resulting from
on-track super exotic bets, plus the breaks. The retention rate to be
established is subject to the prior approval of the gaming commission.
Such rate may not be changed more than once per calendar quarter to be
effective on the first day of the calendar quarter. "Exotic bets" and
"multiple bets" shall have the meanings set forth in section five
hundred nineteen of this chapter. "Super exotic bets" shall have the
meaning set forth in section three hundred one of this chapter. For
purposes of this section, a "pick six bet" shall mean a single bet or
wager on the outcomes of six races. The breaks are hereby defined as the
odd cents over any multiple of five for payoffs greater than one dollar
five cents but less than five dollars, over any multiple of ten for
payoffs greater than five dollars but less than twenty-five dollars,
over any multiple of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty for payoffs over two hundred fifty dollars. Out of the amount so
retained there shall be paid by such franchised corporation to the
commissioner of taxation and finance, as a reasonable tax by the state
for the privilege of conducting pari-mutuel betting on the races run at
the race meetings held by such franchised corporation, the following
percentages of the total pool for regular and multiple bets five per
centum of regular bets and four per centum of multiple bets plus twenty
per centum of the breaks; for exotic wagers seven and one-half per
centum plus twenty per centum of the breaks, and for super exotic bets
seven and one-half per centum plus fifty per centum of the breaks. For
the period June first, nineteen hundred ninety-five through September
ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
three per centum and such tax on multiple wagers shall be two and one-
half per centum, plus twenty per centum of the breaks. For the period
September tenth, nineteen hundred ninety-nine through March thirty-
first, two thousand one, such tax on all wagers shall be two and six-
tenths per centum and for the period April first, two thousand one
through December thirty-first, two thousand [seventeen] EIGHTEEN, such
tax on all wagers shall be one and six-tenths per centum, plus, in each
such period, twenty per centum of the breaks. Payment to the New York
state thoroughbred breeding and development fund by such franchised
corporation shall be one-half of one per centum of total daily on-track
pari-mutuel pools resulting from regular, multiple and exotic bets and
three per centum of super exotic bets provided, however, that for the
period September tenth, nineteen hundred ninety-nine through March thir-
ty-first, two thousand one, such payment shall be six-tenths of one per
centum of regular, multiple and exotic pools and for the period April
first, two thousand one through December thirty-first, two thousand
[seventeen] EIGHTEEN, such payment shall be seven-tenths of one per
centum of such pools.
§ 10. This act shall take effect immediately.
PART PP
Section 1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi-
sion b of section 1612 of the tax law, as amended by section 1 of part
EE of chapter 60 of the laws of 2016, is amended to read as follows:
(F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
agraph, when a vendor track, is located in Sullivan county and within
sixty miles from any gaming facility in a contiguous state such vendor
S. 2009 159 A. 3009
fee shall, for a period of [nine] TEN years commencing April first, two
thousand eight, be at a rate of forty-one percent of the total revenue
wagered at the vendor track after payout for prizes pursuant to this
chapter, after which time such rate shall be as for all tracks in clause
(C) of this subparagraph.
§ 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2017.
PART QQ
Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of subdivi-
sion b of section 1612 of the tax law, as separately amended by section
1 of part GG and section 2 of part SS of chapter 60 of the laws of 2016,
is amended to read as follows:
(H) notwithstanding clauses (A), (B), (C), (D), (E), (F) and (G) of
this subparagraph, the track operator of a vendor track and in the case
of Aqueduct, the video lottery terminal facility operator, shall be
eligible for a vendor's capital award of up to four percent of the total
revenue wagered at the vendor track after payout for prizes pursuant to
this chapter, which shall be used exclusively for capital project
investments to improve the facilities of the vendor track which promote
or encourage increased attendance at the video lottery gaming facility
including, but not limited to hotels, other lodging facilities, enter-
tainment facilities, retail facilities, dining facilities, events
arenas, parking garages and other improvements that enhance facility
amenities; provided that such capital investments shall be approved by
the division, in consultation with the state racing and wagering board,
and that such vendor track demonstrates that such capital expenditures
will increase patronage at such vendor track's facilities and increase
the amount of revenue generated to support state education programs. The
annual amount of such vendor's capital awards that a vendor track shall
be eligible to receive shall be limited to two million five hundred
thousand dollars, except for Aqueduct racetrack, for which there shall
be no annual limit, provided, however, that any such capital award for
the Aqueduct video lottery terminal facility operator shall be one
percent of the total revenue wagered at the video lottery terminal
facility after payout for prizes pursuant to this chapter until the
earlier of the designation of one thousand video lottery devices as
hosted pursuant to paragraph four of subdivision a of section sixteen
hundred seventeen-a of this chapter or April first, two thousand nine-
teen and shall then be four percent of the total revenue wagered at the
video lottery terminal facility after payout for prizes pursuant to this
chapter, provided, further, that such capital award shall only be
provided pursuant to an agreement with the operator to construct an
expansion of the facility, hotel, and convention and exhibition space
requiring a minimum capital investment of three hundred million dollars.
Except for tracks having less than one thousand one hundred video gaming
machines, and except for a vendor track located west of State Route 14
from Sodus Point to the Pennsylvania border within New York, and except
for Aqueduct racetrack each track operator shall be required to co-in-
vest an amount of capital expenditure equal to its cumulative vendor's
capital award. For all tracks, except for Aqueduct racetrack, the amount
of any vendor's capital award that is not used during any one year peri-
od may be carried over into subsequent years ending before April first,
two thousand [seventeen] EIGHTEEN. Any amount attributable to a capital
expenditure approved prior to April first, two thousand [seventeen]
S. 2009 160 A. 3009
EIGHTEEN and completed before April first, two thousand [nineteen] TWEN-
TY; or approved prior to April first, two thousand [twenty-one] TWENTY-
TWO and completed before April first, two thousand [twenty-three] TWEN-
TY-FOUR for a vendor track located west of State Route 14 from Sodus
Point to the Pennsylvania border within New York, shall be eligible to
receive the vendor's capital award. In the event that a vendor track's
capital expenditures, approved by the division prior to April first, two
thousand [seventeen] EIGHTEEN and completed prior to April first, two
thousand [nineteen] TWENTY, exceed the vendor track's cumulative capital
award during the five year period ending April first, two thousand
[seventeen] EIGHTEEN, the vendor shall continue to receive the capital
award after April first, two thousand [seventeen] EIGHTEEN until such
approved capital expenditures are paid to the vendor track subject to
any required co-investment. In no event shall any vendor track that
receives a vendor fee pursuant to clause (F) or (G) of this subparagraph
be eligible for a vendor's capital award under this section. Any opera-
tor of a vendor track which has received a vendor's capital award,
choosing to divest the capital improvement toward which the award was
applied, prior to the full depreciation of the capital improvement in
accordance with generally accepted accounting principles, shall reim-
burse the state in amounts equal to the total of any such awards. Any
capital award not approved for a capital expenditure at a video lottery
gaming facility by April first, two thousand [seventeen] EIGHTEEN shall
be deposited into the state lottery fund for education aid; and
§ 2. This act shall take effect immediately.
PART RR
Section 1. Paragraph c of subdivision 3 of section 97-nnnn of the
state finance law, as added by chapter 174 of the laws of 2013, is
amended to read as follows:
c. ten percent of the moneys in such fund, as attributable to a
specific licensed gaming facility, shall be appropriated or transferred
from the commercial gaming revenue fund among counties within the
region, as defined by section one thousand three hundred ten of the
racing, pari-mutuel wagering and breeding law, hosting said facility for
the purpose of real property tax relief and for education assistance.
Such distribution shall be made among the counties on a per capita
basis, subtracting the population of host municipality and county.
PROVIDED, HOWEVER, SUCH AMOUNT SHALL BE REDUCED BY ONE MILLION FOUR
HUNDRED THOUSAND DOLLARS IN STATE FISCAL YEAR TWO THOUSAND SEVENTEEN --
TWO THOUSAND EIGHTEEN AND BY ONE MILLION FIVE HUNDRED FIFTY THOUSAND
DOLLARS EVERY YEAR THEREAFTER. SUCH FUNDS ATTRIBUTABLE TO THIS REDUCTION
SHALL BE TRANSFERRED TO THE GENERAL FUND AND THE REDUCTION SHALL BE
DISTRIBUTED AMONG SUCH ELIGIBLE COUNTIES PROPORTIONAL TO TOTAL DISTRIB-
UTIONS DURING THE FISCAL YEAR.
§ 2. Subdivision 3 of section 99-h of the state finance law, as
amended by chapter 174 of the laws of 2013, is amended to read as
follows:
3. Moneys of the account, following the segregation of appropriations
enacted by the legislature, shall be available for purposes including
but not limited to: (a) reimbursements or payments to municipal govern-
ments that host tribal casinos pursuant to a tribal-state compact for
costs incurred in connection with services provided to such casinos or
arising as a result thereof, for economic development opportunities and
job expansion programs authorized by the executive law; provided, howev-
S. 2009 161 A. 3009
er, that for any gaming facility located in the city of Buffalo, the
city of Buffalo shall receive a minimum of twenty-five percent of the
negotiated percentage of the net drop from electronic gaming devices the
state receives pursuant to the compact, and provided further that for
any gaming facility located in the city of Niagara Falls, county of
Niagara a minimum of twenty-five percent of the negotiated percentage of
the net drop from electronic gaming devices the state receives pursuant
to the compact shall be distributed in accordance with subdivision four
of this section, and provided further that for any gaming facility
located in the county or counties of Cattaraugus, Chautauqua or Allega-
ny, the municipal governments of the state hosting the facility shall
collectively receive a minimum of twenty-five percent of the negotiated
percentage of the net drop from electronic gaming devices the state
receives pursuant to the compact; and provided further that pursuant to
chapter five hundred ninety of the laws of two thousand four, a minimum
of twenty-five percent of the revenues received by the state pursuant to
the state's compact with the St. Regis Mohawk tribe shall be made avail-
able to the counties of Franklin and St. Lawrence, and affected towns in
such counties. Each such county and its affected towns shall receive
fifty percent of the moneys made available by the state; and provided
further that the state shall annually make twenty-five percent of the
negotiated percentage of the net drop from all gaming devices the state
actually receives pursuant to the Oneida Settlement Agreement confirmed
by section eleven of the executive law as available to the county of
Oneida, and a sum of three and one-half million dollars to the county of
Madison. Additionally, the state shall distribute for a period of nine-
teen and one-quarter years, an additional annual sum of two and one-half
million dollars to the county of Oneida. Additionally, the state shall
distribute the one-time eleven million dollar payment received by the
state pursuant to such agreement with the Oneida Nation of New York to
the county of Madison by wire transfer upon receipt of such payment by
the state; and (b) support and services of treatment programs for
persons suffering from gambling addictions. Moneys not segregated for
such purposes shall be transferred to the general fund for the support
of government during the fiscal year in which they are received. ADDI-
TIONALLY, THE STATE SHALL DISTRIBUTE AN ADDITIONAL ANNUAL SUM OF TWO AND
ONE-QUARTER MILLION DOLLARS TO A COUNTY IN WHICH A GAMING FACILITY IS
LOCATED BUT DOES NOT RECEIVE A PERCENT OF THE NEGOTIATED PERCENTAGE OF
THE NET DROP FROM GAMING DEVICES THE STATE RECEIVES PURSUANT TO A
COMPACT.
§ 3. Subdivision 3-a of section 99-h of the state finance law, as
amended by section 4 of part EE of chapter 59 of the laws of 2014, is
amended to read as follows:
3-a. Ten percent of any of the funds actually received by the state
pursuant to the tribal-state compacts and agreements described in subdi-
vision two of this section prior to the transfer of unsegregated moneys
to the general fund required by such subdivision, shall be distributed
to counties in each respective exclusivity zone provided they do not
otherwise receive a share of said revenues pursuant to this section.
Such distribution shall be made among such counties on a per capita
basis, excluding the population of any municipality that receives a
distribution pursuant to subdivision three of this section. PROVIDED,
HOWEVER, SUCH AMOUNT SHALL BE REDUCED BY SIX HUNDRED THOUSAND DOLLARS IN
STATE FISCAL YEAR TWO THOUSAND SEVENTEEN -- TWO THOUSAND EIGHTEEN AND BY
FIVE HUNDRED THOUSAND DOLLARS EVERY YEAR THEREAFTER. THE REDUCTION SHALL
S. 2009 162 A. 3009
BE DISTRIBUTED AMONG SUCH ELIGIBLE COUNTIES PROPORTIONAL TO TOTAL
DISTRIBUTIONS DURING THE FISCAL YEAR.
§ 4. Paragraph b of subdivision 2 of section 54-l of the state finance
law, as amended by section 1 of part X of chapter 55 of the laws of
2014, is amended to read as follows:
b. Within the amounts appropriated therefor, eligible municipalities
shall receive an amount equal to seventy percent of the state aid
payment received in the state fiscal year commencing April first, two
thousand eight from an appropriation for aid to municipalities with
video lottery gaming facilities. PROVIDED, HOWEVER, SUCH AMOUNT SHALL
BE REDUCED BY TWO HUNDRED FIFTY THOUSAND DOLLARS IN THE STATE FISCAL
YEAR COMMENCING APRIL FIRST, TWO THOUSAND SEVENTEEN AND BY TWO HUNDRED
THOUSAND DOLLARS EVERY YEAR THEREAFTER. SUCH REDUCTION SHALL BE DISTRIB-
UTED AMONG SUCH ELIGIBLE MUNICIPALITIES PROPORTIONAL TO PAYMENTS
RECEIVED BY SUCH ELIGIBLE MUNICIPALITIES IN THE STATE FISCAL YEAR
COMMENCING APRIL FIRST, TWO THOUSAND SIXTEEN.
§ 5. This act shall take effect April 1, 2017 and shall expire and be
deemed repealed March 31, 2020 notwithstanding section 2 of chapter 747
of the laws of 2006, as amended.
§ 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 RR of this act shall be
as specifically set forth in the last section of such Parts.