S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 7509                                                  A. 9509
 
                       S E N A T E - A S S E M B L Y
 
                             January 18, 2018
                                ___________
 
 IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
   cle seven of the Constitution -- read twice and ordered  printed,  and
   when printed to be committed to the Committee on Finance
 
 IN  ASSEMBLY  --  A  BUDGET  BILL, submitted by the Governor pursuant to
   article seven of the Constitution -- read once  and  referred  to  the
   Committee on Ways and Means

 AN  ACT  to  amend  the real property tax law, in relation to the annual
   growth in STAR benefits (Part A); to amend the real property tax  law,
   in  relation to making the STAR income verification program mandatory;
   to amend the tax law, in relation to the  calculation  of  income  for
   basic STAR purposes; to repeal subparagraphs (v) and (vi) of paragraph
   (b)  of  subdivision  4,  paragraphs  (b) and (c) of subdivision 5 and
   paragraph (c) of subdivision 6 of section 425 of the real property tax
   law relating to the school tax relief (STAR) exemption; and to  repeal
   section  171-o  of  the  tax law relating to income verification for a
   city with a population of one million or more (Part B); to  amend  the
   real property law, in relation to real property transfer reports (Part
   C); to amend the real property law, in relation to reports of manufac-
   tured  housing  park  owners  (Part D); to amend the general municipal
   law, the education law, the state finance law, the real  property  tax
   law  and  the  tax law, in relation to making technical corrections to
   various statutes impacting property taxes; and  to  repeal  subsection
   (bbb) of section 606 of the tax law, section 3-d of the general munic-
   ipal  law  and  section  2023-b of the education law, relating thereto
   (Part E); to amend the real property tax law, in relation  to  taxable
   state  land  (Part F); to amend the real property tax law, in relation
   to assessment ceilings; and to amend chapter 475 of the laws of  2013,
   amending the real property tax law relating to assessment ceilings for
   local public utility mass real property, in relation to the effective-
   ness  thereof  (Part  G);  to amend the tax law and the administrative
   code of the city of New York, in relation to extending the statute  of
   limitations  for  assessing  tax on amended returns (Part H); to amend
   the tax law, in relation to  providing  for  employee  wage  reporting
   consistency  between  the  department  of taxation and finance and the
   department of labor (Part I); to amend the tax  law,  in  relation  to
   sales and compensating use taxes imposed on food and beverages sold by
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD12674-01-8

 S. 7509                             2                            A. 9509
 
   restaurants and similar establishments (Part J); to amend the tax law,
   in  relation  to  allowing  sharing  with  the comptroller information
   regarding unwarranted fixed and final debt  (Part  K);  to  amend  the
   social services law, in relation to the disclosure of certain informa-
   tion  relating  to a person receiving public assistance to the commis-
   sioner of taxation and finance (Part L); to  amend  the  tax  law,  in
   relation  to  establishing a conditional tax on carried interest (Part
   M); to amend the tax law, in relation to permitting  the  commissioner
   of  taxation  and  finance to seek judicial review of decisions of the
   tax appeals tribunal (Part N); to amend the tax law and  the  adminis-
   trative code of the city of New York, in relation to the definition of
   resident  for  tax  purposes  of  the personal income tax (Part O); to
   amend the tax law, in relation to the empire state child credit  (Part
   P);  to amend the tax law, in relation to extending the hire a veteran
   credit for an additional two years (Part Q); to amend  the  labor  law
   and  the  tax  law,  in  relation to enhancing the New York youth jobs
   program (Part R); to amend the tax law, in relation to  the  temporary
   deferral  of  certain  tax  credits (Part S); to amend the tax law, in
   relation to extending the real estate transfer tax statute of  limita-
   tions for refunds from two to three years and providing for consistent
   joint  liability  treatment  within the real estate transfer tax (Part
   T); to amend the tax law, in relation to the taxation of cigars  (Part
   U);  to  amend  the tax law and the administrative code of the city of
   New York, in relation to sales and  use  taxes  on  gas  and  electric
   service;  and repealing section 1105-C of the tax law relating thereto
   (Part V); to amend the tax law, in relation to  exempting  from  sales
   and  use  tax  certain veterinary drugs and medicines and removing the
   refund/credit therefor (Part W); to amend the tax law, in relation  to
   providing  relief  from  sales tax liability for certain partners of a
   limited partnership and members of a limited liability  company  (Part
   X);  to  amend the tax law, in relation to exempting items of food and
   drink when sold from certain  vending  machines  from  the  sales  and
   compensating  use  tax  (Part Y); to amend part A of chapter 61 of the
   laws of 2017, amending the tax law relating to the imposition of sales
   and compensating use taxes in certain counties, in relation to extend-
   ing the revenue distribution provisions for the  additional  rates  of
   sales  and  use  tax  of Genesee, Monroe, Onondaga and Orange counties
   (Part Z); to amend the tax law, in relation to  imposing  an  internet
   fairness  conformity  tax  and  requiring  non-collecting  sellers  to
   provide specified information  to  New  York  purchasers  and  to  the
   commissioner  of taxation and finance (Part AA); to amend the tax law,
   in relation to imposing a health tax on vapor products (Part  BB);  to
   amend the tax law, in relation to the imposition of an opioid epidemic
   surcharge;  and  to amend the state finance law, in relation to estab-
   lishing the opioid prevention, treatment and  recovery  account  (Part
   CC);  to  amend  the tax law, in relation to establishing a healthcare
   insurance windfall profit fee (Part DD); to amend the racing, pari-mu-
   tuel wagering and breeding law, in relation to adjusting the franchise
   payment, and authorizing  night  races  under  certain  circumstances;
   creating  an equine drug testing advisory committee; and providing for
   the repeal of certain provisions upon  the  expiration  thereof  (Part
   EE);  to  amend  the racing, pari-mutuel wagering and breeding law, in
   relation to providing funds for the aftercare of retired horses  (Part
   FF);  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

 S. 7509                             3                            A. 9509
 
   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 GG); to  amend  the  state  finance  law,  in
   relation to the commercial gaming revenue fund; and to repeal subdivi-
   sion  4  of  section 97-nnnn of the state finance law relating to base
   year gaming revenue (Part HH); and to amend the tax law,  in  relation
   to  commissions  paid  to the operator of a video lottery facility; to
   repeal certain provisions of such law relating thereto; and  providing
   for the repeal of certain provisions upon expiration thereof (Part II)

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act enacts into law major  components  of  legislation
 which are necessary to implement the state fiscal plan for the 2018-2019
 state  fiscal  year.  Each  component  is wholly contained within a Part
 identified as Parts A through II. The effective date for each particular
 provision contained within such Part is set forth in the last section of
 such Part. Any provision in any section contained within a Part, includ-
 ing the effective date of the Part, which makes a reference to a section
 "of this act", when used in connection with that  particular  component,
 shall  be  deemed  to mean and refer to the corresponding section of the
 Part in which it is found. Section three of  this  act  sets  forth  the
 general effective date of this act.

                                  PART A
 
   Section  1.  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  SEVENTEEN-TWO  THOUSAND  EIGHTEEN  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 EIGHTEEN-TWO THOUSAND NINETEEN 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. 7509                             4                            A. 9509
 
                                  PART B
 
   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 NINETEEN, 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] NINETEEN,
 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. 7509                             5                            A. 9509
 
 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.   IF A TAXPAYER IS DISSATISFIED WITH THE DEPART-
 MENT'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  DETERMI-
 NATION.  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, 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
 have requested notices pursuant to this paragraph AND  SHALL  FURNISH  A
 COPY OF SUCH LIST TO THE DEPARTMENT UPON REQUEST.

 S. 7509                             6                            A. 9509
 
   (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.
   (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

 S. 7509                             7                            A. 9509

 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
 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

 S. 7509                             8                            A. 9509
 
 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 NINETEEN, 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 2019 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 C
 
   Section  1. Subdivision 1-e of section 333 of the real property law is
 amended by adding two new paragraphs ix and x to read as follows:
   IX. WHENEVER THERE HAS BEEN A TRANSFER OR ACQUISITION OF  A  SHARE  OR
 SHARES  IN  A  COOPERATIVE HOUSING CORPORATION, AND SUCH SHARE OR SHARES
 COME WITH A RIGHT TO OCCUPY A UNIT  OR  APARTMENT  LOCATED  IN  PROPERTY
 OWNED BY SUCH CORPORATION, A TRANSFER REPORT MUST BE FILED BY THE TRANS-
 FEREE  OR  TRANSFEREES  DIRECTLY  WITH  THE  DEPARTMENT  OF TAXATION AND
 FINANCE,  REGARDLESS  OF  WHETHER  A  DEED  IS  PREPARED,  DELIVERED  OR
 RECORDED, AS SET FORTH IN THIS PARAGRAPH. THE FEE IMPOSED BY SUBDIVISION
 THREE OF THIS SECTION SHALL NOT APPLY TO TRANSFER REPORTS FILED DIRECTLY
 WITH  THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO THIS PARAGRAPH.
 SUCH REPORT SHALL BE IN A FORM PRESCRIBED BY THE COMMISSIONER  OF  TAXA-
 TION  AND  FINANCE, MUST CONTAIN THE INFORMATION REQUIRED TO BE INCLUDED
 BY THIS SUBDIVISION, AND IN ADDITION, MUST SPECIFY THE NUMBER OF  SHARES
 BEING TRANSFERRED OR ACQUIRED. WHEN A REAL ESTATE TRANSFER TAX RETURN IS
 FILED  WITH  SUCH COMMISSIONER PURSUANT TO SECTION FOURTEEN HUNDRED NINE

 S. 7509                             9                            A. 9509
 
 OF THE TAX LAW IN RELATION TO SUCH PROPERTY, THE REPORT REQUIRED BY THIS
 PARAGRAPH SHALL BE FILED CONCURRENTLY THEREWITH, BUT IN NO  EVENT  SHALL
 THE  REPORT  REQUIRED  BY  THIS PARAGRAPH BE DEEMED TO BE A PART OF SUCH
 REAL ESTATE TRANSFER TAX RETURN.
   X.  WHENEVER THERE HAS BEEN A TRANSFER OR ACQUISITION OF A CONTROLLING
 INTEREST IN AN ENTITY WITH AN INTEREST  IN  REAL  PROPERTY,  A  TRANSFER
 REPORT  MUST BE FILED BY THE TRANSFEREE OR TRANSFEREES DIRECTLY WITH THE
 DEPARTMENT OF TAXATION AND FINANCE, REGARDLESS  OF  WHETHER  A  DEED  IS
 PREPARED, DELIVERED OR RECORDED, AS SET FORTH IN THIS PARAGRAPH. THE FEE
 IMPOSED BY SUBDIVISION THREE OF THIS SECTION SHALL NOT APPLY TO TRANSFER
 REPORTS  FILED  DIRECTLY  WITH  THE  DEPARTMENT  OF TAXATION AND FINANCE
 PURSUANT TO THIS PARAGRAPH. SUCH REPORT SHALL BE IN A FORM PRESCRIBED BY
 THE COMMISSIONER OF TAXATION AND FINANCE, MUST CONTAIN  THE  INFORMATION
 REQUIRED TO BE INCLUDED BY THIS SUBDIVISION, AND IN ADDITION, MUST SPEC-
 IFY  THE  PERCENTAGE  OF  THE  OWNERSHIP  INTEREST  BEING TRANSFERRED OR
 ACQUIRED. THE TRANSFER REPORT SHALL INDICATE THE PERCENTAGE OF THE TRAN-
 SACTION THAT IS EXEMPT FROM THE REAL  ESTATE  TRANSFER  TAX  AS  A  MERE
 CHANGE  IN  IDENTITY OR FORM OF OWNERSHIP OR ORGANIZATION WHERE THERE IS
 NO CHANGE IN BENEFICIAL OWNERSHIP PURSUANT TO PARAGRAPH SIX OF  SUBDIVI-
 SION  (B) OF SECTION FOURTEEN HUNDRED FIVE OF THE TAX LAW, IF ANY.  WHEN
 A REAL ESTATE TRANSFER TAX RETURN IS FILED WITH SUCH COMMISSIONER PURSU-
 ANT TO SECTION FOURTEEN HUNDRED NINE OF THE TAX LAW IN RELATION TO  SUCH
 PROPERTY,  THE  REPORT REQUIRED BY THIS PARAGRAPH SHALL BE FILED CONCUR-
 RENTLY THEREWITH, BUT IN NO EVENT SHALL  THE  REPORT  REQUIRED  BY  THIS
 PARAGRAPH  BE  DEEMED  TO  BE  A  PART  OF SUCH REAL ESTATE TRANSFER TAX
 RETURN. FOR PURPOSES OF THIS PARAGRAPH, THE TERMS "CONTROLLING INTEREST"
 AND "INTEREST IN REAL PROPERTY" SHALL HAVE THE SAME MEANING AS SET FORTH
 IN SECTION FOURTEEN HUNDRED ONE OF THE TAX LAW, PROVIDED, HOWEVER,  THAT
 THE  TERM  "INTEREST  IN REAL PROPERTY" SHALL BE LIMITED TO INTERESTS IN
 REAL PROPERTY SUBJECT TO REAL PROPERTY TAX  ASSESSMENT  SUCH  AS  LANDS,
 BUILDINGS,  STRUCTURES,  AND  OTHER  IMPROVEMENTS, AND SHALL NOT INCLUDE
 DEVELOPMENT RIGHTS, AIR SPACE, OR AIR RIGHTS.
   § 2. This act shall take effect January 1, 2019  and  shall  apply  to
 transfers and acquisitions occurring on and after such date.
 
                                  PART D
 
   Section  1.  Subdivision v of section 233 of the real property law, as
 amended by chapter 566 of the laws  of  1996,  is  amended  to  read  as
 follows:
   v.  1.  On  and  after  April first, nineteen hundred eighty-nine, the
 commissioner of housing and community renewal shall have the  power  and
 duty  to  enforce  and  ensure  compliance  with  the provisions of this
 section. However, the commissioner shall not have the power or  duty  to
 enforce  manufactured  home park rules and regulations established under
 subdivision f of this section.
   2. On or before January  first,  nineteen  hundred  eighty-nine,  each
 manufactured  home  park  owner  or  operator  shall file a registration
 statement with the commissioner and  shall  thereafter  file  an  annual
 registration  statement  on  or  before January first of each succeeding
 year, UP TO AND INCLUDING TWO THOUSAND EIGHTEEN. THEREAFTER, EACH  MANU-
 FACTURED  HOME  PARK OWNER OR OPERATOR SHALL FILE QUARTERLY REGISTRATION
 STATEMENTS WITH THE COMMISSIONER NO LATER THAN TWENTY-ONE DAYS AFTER THE
 END OF EACH CALENDAR QUARTER. The  commissioner,  by  regulation,  shall
 provide  that such registration statement shall include [only] the names
 of all persons owning an interest in the park, the names of all  tenants

 S. 7509                            10                            A. 9509
 
 of the park, all services provided by the park owner to the tenants, and
 SUCH OTHER INFORMATION AS THE COMMISSIONER SHALL PRESCRIBE BY REGULATION
 AFTER  CONSULTATION  WITH  THE  COMMISSIONER  OF  TAXATION  AND FINANCE;
 PROVIDED  THAT  IN  THE  CASE  OF A REGISTRATION STATEMENT FOR THE FIRST
 CALENDAR QUARTER OF A YEAR, SUCH STATEMENT SHALL ALSO INCLUDE a copy  of
 all  current  manufactured  home park rules and regulations. THE COMMIS-
 SIONER SHALL PROVIDE THE COMMISSIONER OF TAXATION  AND  FINANCE  WITH  A
 COMPLETE  COPY OF EACH QUARTERLY REPORT NO LATER THAN FIFTEEN DAYS AFTER
 THE RECEIPT THEREOF.
   3. Whenever there shall be a violation of this section, an application
 may be made by the commissioner of housing and community renewal in  the
 name of the people of the state of New York to a court or justice having
 jurisdiction  by  a  special proceeding to issue an injunction, and upon
 notice to the defendant of not  less  than  five  days,  to  enjoin  and
 restrain  the  continuance  of such violation; and if it shall appear to
 the satisfaction of the court or justice  that  the  defendant  has,  in
 fact,  violated  this section, an injunction may be issued by such court
 or justice, enjoining and restraining any  further  violation  and  with
 respect  to  this  subdivision,  directing  the filing of a registration
 statement. In any such proceeding, the court may make allowances to  the
 commissioner of housing and community renewal of a sum not exceeding two
 thousand  dollars against each defendant, and direct restitution.  When-
 ever the court shall determine that a  violation  of  this  section  has
 occurred,  the  court  may  impose  a civil penalty of not more than one
 thousand five hundred dollars for each violation. Such penalty shall  be
 deposited in the manufactured home cooperative fund, created pursuant to
 section  fifty-nine-h  of the private housing finance law. In connection
 with any such proposed application,  the  commissioner  of  housing  and
 community  renewal  is authorized to take proof and make a determination
 of the relevant facts and to issue  subpoenas  in  accordance  with  the
 civil  practice  law and rules. The provisions of this subdivision shall
 not impair the rights granted under subdivision u of this section.
   § 2. This act shall take effect immediately.
 
                                  PART E
 
   Section 1. Subsection (bbb) of section 606 of the tax law is REPEALED.
   § 1-a. Section 3-d of the general municipal law is REPEALED.
   § 1-b. Section 2023-b of the education law is REPEALED.
   § 2. The general municipal law is amended by adding a new section  3-d
 to read as follows:
   §  3-D.  CERTIFICATION  OF COMPLIANCE WITH TAX LEVY LIMIT. 1. UPON THE
 ADOPTION OF THE BUDGET OF A LOCAL GOVERNMENT UNIT, THE  CHIEF  EXECUTIVE
 OFFICER OR BUDGET OFFICER OF SUCH LOCAL GOVERNMENT UNIT SHALL CERTIFY TO
 THE  STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE THAT
 THE BUDGET SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT  PRESCRIBED  IN
 SECTION  THREE-C OF THIS ARTICLE AND, IF THE GOVERNING BODY OF THE LOCAL
 GOVERNMENT UNIT DID ENACT A LOCAL LAW OR APPROVE A RESOLUTION  TO  OVER-
 RIDE  THE  TAX  LEVY LIMIT, THAT SUCH LOCAL LAW OR RESOLUTION WAS SUBSE-
 QUENTLY REPEALED. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND  MANNER
 PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSION-
 ER OF TAXATION AND FINANCE.
   2.  NOTWITHSTANDING  ANY  OTHER LAW TO THE CONTRARY, IF SUCH A CERTIF-
 ICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF  THE  LOCAL  GOVERNMENT
 UNIT  EXCEEDS  THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT SHALL BE
 PLACED IN RESERVE AND USED IN THE MANNER PRESCRIBED BY  SUBDIVISION  SIX

 S. 7509                            11                            A. 9509
 
 OF  SECTION THREE-C OF THIS ARTICLE, EVEN IF A TAX LEVY IN EXCESS OF THE
 TAX LEVY LIMIT HAD BEEN AUTHORIZED FOR THE APPLICABLE FISCAL YEAR  BY  A
 DULY ADOPTED LOCAL LAW OR RESOLUTION.
   3.  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, EVERY LOCAL
 GOVERNMENT UNIT SHALL REPORT BOTH ITS PROPOSED BUDGET  AND  ITS  ADOPTED
 BUDGET  TO  THE  OFFICE  OF THE STATE COMPTROLLER AT THE TIME AND IN THE
 MANNER AS HE OR SHE MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET  HAS  BEEN
 OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDIVISION.
   §  3.  The  education law is amended by adding a new section 2023-b to
 read as follows:
   § 2023-B. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT.  1.    UPON
 THE  ADOPTION  OF  THE  BUDGET OF AN ELIGIBLE SCHOOL DISTRICT, THE CHIEF
 EXECUTIVE OFFICER OF SUCH SCHOOL DISTRICT SHALL  CERTIFY  TO  THE  STATE
 COMPTROLLER,  THE  COMMISSIONER  OF TAXATION AND FINANCE AND THE COMMIS-
 SIONER THAT THE BUDGET SO ADOPTED DOES NOT EXCEED  THE  TAX  LEVY  LIMIT
 PRESCRIBED  BY  SECTION  TWO THOUSAND TWENTY-THREE-A OF THIS PART.  SUCH
 CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE
 COMPTROLLER IN  CONSULTATION  WITH  THE  COMMISSIONER  OF  TAXATION  AND
 FINANCE AND THE COMMISSIONER.
   2.  IF  SUCH  A CERTIFICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF
 THE SCHOOL DISTRICT EXCEEDS THE APPLICABLE TAX LEVY  LIMIT,  THE  EXCESS
 AMOUNT  SHALL  BE PLACED IN RESERVE AND USED IN THE MANNER PRESCRIBED BY
 SUBDIVISION FIVE OF SECTION TWO THOUSAND TWENTY-THREE-A  OF  THIS  PART,
 EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN DULY AUTHOR-
 IZED FOR THE APPLICABLE FISCAL YEAR BY THE SCHOOL DISTRICT VOTERS.
   3.  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY SCHOOL
 DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF SECTION TWO THOUSAND TWEN-
 TY-THREE-A OF THIS PART SHALL REPORT BOTH ITS PROPOSED  BUDGET  AND  ITS
 ADOPTED  BUDGET  TO  THE OFFICE OF THE STATE COMPTROLLER AND THE COMMIS-
 SIONER AT THE TIME AND IN THE MANNER AS THEY MAY PRESCRIBE,  WHETHER  OR
 NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDI-
 VISION.
   §  4.  Subdivision  3  of  section 97-rrr of the state finance law, as
 amended by section 1 of part F of chapter 59 of the  laws  of  2015,  is
 amended to read as follows:
   3.  The  monies in such fund shall be appropriated for school property
 tax exemptions granted pursuant to the real property tax law and payable
 pursuant to section thirty-six hundred nine-e of the education law[, and
 for payments to the city of New York pursuant to section fifty-four-f of
 this chapter].
   § 5. Section 925-b of the real property tax law, as amended by chapter
 161 of the laws of 2006, is amended to read as follows:
   § 925-b. Extension; certain persons sixty-five years of age  or  over.
 Notwithstanding  any contrary provision of this chapter, or any general,
 special or local law, code or charter, the governing body of a municipal
 corporation other than a county may, by resolution adopted prior to  the
 levy  of any taxes on real property located within such municipal corpo-
 ration, authorize an extension of no more than five  business  days  for
 the payment of taxes without interest or penalty to any resident of such
 municipal corporation who has received an exemption pursuant to subdivi-
 sion four of section four hundred twenty-five or four hundred sixty-sev-
 en  of this chapter, OR A CREDIT PURSUANT TO SUBSECTION (EEE) OF SECTION
 SIX HUNDRED SIX OF THE TAX LAW, related to a principal residence located
 within such municipal corporation. If such an extension is granted,  and
 any  taxes are not paid by the final date so provided, those taxes shall

 S. 7509                            12                            A. 9509
 
 be subject to the same interest and penalties that would have applied if
 no extension had been granted.
   § 6. Paragraph (d) of subdivision 1 of section 928-a of the real prop-
 erty  tax law is relettered paragraph (f) and two new paragraphs (d) and
 (e) are added to read as follows:
   (D) IF THE TAXES OF A CITY,  TOWN,  VILLAGE  OR  SCHOOL  DISTRICT  ARE
 COLLECTED BY A COUNTY OFFICIAL, THE COUNTY SHALL HAVE THE SOLE AUTHORITY
 TO  ESTABLISH  A  PARTIAL  PAYMENT PROGRAM PURSUANT TO THIS SECTION WITH
 RESPECT TO THE TAXES SO COLLECTED.
   (E) IF THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT  ARE  NOT
 COLLECTED  BY  A  COUNTY OFFICIAL, BUT ITS TAX BILLS ARE PREPARED BY THE
 COUNTY, OR ITS TAX COLLECTION ACCOUNTING SOFTWARE  IS  PROVIDED  BY  THE
 COUNTY,  THEN  BEFORE  THE  CITY,  TOWN,  VILLAGE OR SCHOOL DISTRICT MAY
 IMPLEMENT A PARTIAL PAYMENT PROGRAM PURSUANT TO THIS  SECTION,  IT  MUST
 OBTAIN  WRITTEN APPROVAL OF THE CHIEF EXECUTIVE OFFICER OF THE COUNTY OR
 THE COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES.
   § 7. Subparagraph (B) of paragraph 7 of subsection  (eee)  of  section
 606  of  the tax law, as amended by section 1 of part G of chapter 59 of
 the laws of 2017, is amended to read as follows:
   (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  may  be  disclosed  to  assessors
 [and], county directors of real property tax services, AND MUNICIPAL TAX
 COLLECTING OFFICERS. In addition, where an agreement is in place between
 the  commissioner  and  the head of the tax department of another state,
 such information may be disclosed to such official or his or her  desig-
 nees. Such information shall be considered confidential and shall not be
 subject to further disclosure pursuant to the freedom of information law
 or otherwise.
   § 7-a. Paragraph (g) of subdivision 2 of section 425 of the real prop-
 erty tax law, as added by section 1 of part B of chapter 389 of the laws
 of 1997 and 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:
   (g)  Computation  and  certification  by commissioner. It shall be the
 responsibility of the commissioner to compute the exempt amount for each
 assessing unit in each county in the  manner  provided  herein,  and  to
 certify the same to the assessor of each assessing unit and to the coun-
 ty  director  of real property tax services of each county. Such certif-
 ication shall be  made  at  least  twenty  days  before  the  last  date
 prescribed  by  law  for  the  filing  of the tentative assessment roll.
 PROVIDED, HOWEVER, THAT WHERE SCHOOL TAXES ARE LEVIED ON  A  PRIOR  YEAR
 ASSESSMENT  ROLL, OR ON A FINAL ASSESSMENT ROLL THAT WAS FILED MORE THAN
 ONE YEAR AFTER THE TENTATIVE ROLL WAS FILED, SUCH CERTIFICATION SHALL BE
 MADE NO LATER THAN FIFTEEN DAYS AFTER THE PUBLICATION OF THE DATA NEEDED
 TO COMPUTE THE BASE FIGURE FOR THE ENHANCED STAR EXEMPTION  PURSUANT  TO
 CLAUSE  (A)  OF  SUBPARAGRAPH (VI) OF PARAGRAPH (B) OF THIS SUBDIVISION,
 AND PROVIDED FURTHER, THAT  UPON  RECEIPT  OF  SUCH  CERTIFICATION,  THE
 ASSESSOR  SHALL  THEREUPON  BE  AUTHORIZED  AND  DIRECTED TO CORRECT THE
 ASSESSMENT ROLL TO REFLECT THE EXEMPT AMOUNT SO CERTIFIED, OR, IF ANOTH-
 ER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT  THAT
 PERSON TO MAKE THE APPROPRIATE CORRECTIONS.
   §  8. Paragraph 6 of subsection (eee) of section 606 of the tax law is
 amended by adding a new subparagraph (A) to read as follows:
   (A) A MARRIED COUPLE  MAY  NOT  RECEIVE  A  CREDIT  PURSUANT  TO  THIS
 SUBSECTION  ON  MORE  THAN  ONE RESIDENCE DURING ANY GIVEN TAXABLE YEAR,
 UNLESS LIVING APART DUE TO LEGAL SEPARATION. NOR MAY  A  MARRIED  COUPLE

 S. 7509                            13                            A. 9509
 
 RECEIVE  A  CREDIT  PURSUANT  TO  THIS SUBSECTION ON ONE RESIDENCE WHILE
 RECEIVING AN EXEMPTION PURSUANT TO SECTION FOUR HUNDRED  TWENTY-FIVE  OF
 THE  REAL PROPERTY TAX LAW ON ANOTHER RESIDENCE, UNLESS LIVING APART DUE
 TO LEGAL SEPARATION.
   §  9.  This act shall take effect immediately; provided, however, that
 section 3-d of the general municipal law, as added  by  section  two  of
 this  act,  shall  expire and be deemed repealed on the same date and in
 the same manner as section 1 of part A of chapter  97  of  the  laws  of
 2011,  expires  and is deemed repealed, and provided that section 2023-b
 of the education law, as added by  section  three  of  this  act,  shall
 expire and be deemed repealed on the same date and in the same manner as
 section  2  of  part A of chapter 97 of the laws of 2011, expires and is
 deemed repealed, and provided further that the amendments to paragraph 6
 of subsection (eee) of section 606 of the tax law made by section  eight
 of  this  act  shall  take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2016.
   REPEAL NOTE: Section 606(bbb) of the  Tax  Law,  section  3-d  of  the
 General  Municipal  Law  and section 2023-b of the Education Law collec-
 tively constituted the enabling legislation for the  tax  freeze  credit
 program.  By the terms of those statutes, the tax freeze credit was only
 applicable  to  taxable  years  2014,  2015  and  2016. Therefore, these
 provisions  no  longer  serve  a  purpose,  except  for  the   reporting
 provisions,  which  facilitate  the administration of the tax levy limit
 program and are being preserved in a reenacted section 3-d of the Gener-
 al Municipal Law and section 2023-b of the Education Law.
 
                                  PART F
 
   Section 1. Subdivision 1 of section 544 of the real property tax  law,
 as  amended  by  chapter  18  of  the laws of 2008, is amended and a new
 subdivision 3 is added to read as follows:
   1. The comptroller shall pay taxes levied on lands  of  the  state  in
 each  county  pursuant  to  the foregoing sections of this title, out of
 moneys appropriated by the legislature therefor, to the county treasurer
 for appropriate distribution upon submission  of  a  statement  of  such
 taxes  by  him  or  her  in such form and executed in such manner by the
 county treasurer as may be required by the comptroller. Provided, howev-
 er, that in the case of lands which are taxable pursuant to  subdivision
 (j)  of  section  five hundred thirty-two of this title, the comptroller
 shall pay such taxes. Such payment shall  be  requested,  processed  and
 paid  separately  from  all  other  taxes that are payable to the county
 treasurer pursuant to this section.  PROVIDED FURTHER, THAT ON AND AFTER
 APRIL FIRST, TWO THOUSAND EIGHTEEN, ONCE TAXES HAVE BEEN PAID ON A TAXA-
 BLE PARCEL OF STATE LAND PURSUANT TO THIS  SUBDIVISION,  THE  AMOUNT  OF
 TAXES  DUE  AND PAYABLE ON THAT PARCEL THEREAFTER SHALL BE CALCULATED BY
 THE COMPTROLLER IN ACCORDANCE WITH THE PROVISIONS OF  SUBDIVISION  THREE
 OF THIS SECTION.
   3.  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ON AND AFTER
 APRIL FIRST, TWO THOUSAND EIGHTEEN, ONCE TAXES HAVE BEEN PAID ON A TAXA-
 BLE PARCEL OF STATE LAND PURSUANT TO SUBDIVISION ONE  OF  THIS  SECTION,
 THE  COMPTROLLER SHALL THEREAFTER CALCULATE THE TAXES DUE AND PAYABLE ON
 THAT PARCEL AS FOLLOWS:
   (A) IN THE CASE OF A LOCAL GOVERNMENT,  THE  TAXES  SO  PAYABLE  SHALL
 EQUAL  THE  TAXES  THAT  WERE PAYABLE ON THAT PARCEL IN THE PRIOR FISCAL
 YEAR OF THE LOCAL GOVERNMENT MULTIPLIED BY  THE  ALLOWABLE  LEVY  GROWTH
 FACTOR.  AS USED IN THIS PARAGRAPH, THE TERMS "LOCAL GOVERNMENT," "PRIOR

 S. 7509                            14                            A. 9509
 
 FISCAL YEAR" AND "ALLOWABLE LEVY GROWTH  FACTOR"  SHALL  HAVE  THE  SAME
 MEANINGS  AS  SET FORTH IN SECTION THREE-C OF THE GENERAL MUNICIPAL LAW,
 PROVIDED THAT IF SUCH SECTION IS NO LONGER IN EFFECT ON  THE  DATE  SUCH
 TAXES  ARE  PAID,  SUCH  TERMS  SHALL BE DEEMED TO HAVE THE MEANINGS SET
 FORTH IN SUCH SECTION AS IT READ ON THE LAST DATE ON  WHICH  IT  WAS  IN
 EFFECT.
   (B) IN THE CASE OF A SCHOOL DISTRICT, THE TAXES SO PAYABLE SHALL EQUAL
 THE  TAXES  THAT WERE PAYABLE ON THAT PARCEL IN THE PRIOR SCHOOL YEAR OF
 THE SCHOOL DISTRICT MULTIPLIED BY THE ALLOWABLE LEVY GROWTH  FACTOR.  AS
 USED IN THIS PARAGRAPH, THE TERMS "SCHOOL DISTRICT," "PRIOR SCHOOL YEAR"
 AND  "ALLOWABLE  LEVY GROWTH FACTOR" SHALL HAVE THE SAME MEANINGS AS SET
 FORTH IN SECTION TWO  THOUSAND  TWENTY-THREE-A  OF  THE  EDUCATION  LAW,
 PROVIDED  THAT  IF  SUCH SECTION IS NO LONGER IN EFFECT ON THE DATE SUCH
 TAXES ARE PAID, SUCH TERMS SHALL BE DEEMED  TO  HAVE  THE  MEANINGS  SET
 FORTH  IN  SUCH  SECTION  AS IT READ ON THE LAST DATE ON WHICH IT WAS IN
 EFFECT.
   (C) ON OR BEFORE JULY FIRST OF EACH YEAR, THE COMPTROLLER SHALL CALCU-
 LATE THE AMOUNTS OF TAXES THAT ARE DUE AND PAYABLE ON TAXABLE STATE LAND
 PURSUANT TO THIS SUBDIVISION, AND SHALL NOTIFY THE COMMISSIONER  OF  THE
 AMOUNTS  SO  CALCULATED.  THE COMMISSIONER SHALL THEREUPON TRANSMIT THAT
 INFORMATION TO THE AFFECTED LOCAL GOVERNMENTS AND SCHOOL DISTRICTS.  THE
 TAXES DUE ON SUCH LANDS SHALL BE PAID BY THE COMPTROLLER IN  THE  MANNER
 PROVIDED BY SUBDIVISION ONE OF THIS SECTION.
   (D)  THE  FOLLOWING  PROVISIONS  SHALL  APPLY  TO STATE LANDS THAT ARE
 SUBJECT TO THE PROVISIONS OF THIS SUBDIVISION:
   (I) SUCH LANDS SHALL NOT BE INCLUDED ON THE  LISTS  OF  TAXABLE  STATE
 LANDS THAT MUST BE SUPPLIED BY THE COMMISSIONER PURSUANT TO SECTION FIVE
 HUNDRED FORTY OF THIS TITLE.
   (II)  THE  ASSESSMENTS  OF  SUCH  LANDS  SHALL  NOT BE REPORTED TO THE
 COMMISSIONER PURSUANT TO SECTION FIVE HUNDRED FORTY-TWO OF THIS TITLE.
   (III) THE ASSESSMENTS OF SUCH  LANDS  SHALL  NOT  BE  SUBJECT  TO  THE
 APPROVAL  OF THE COMMISSIONER PURSUANT TO SUCH SECTION, AND SHALL NOT BE
 TAKEN INTO ACCOUNT IN THE CALCULATION OF THE TAXES DUE ON SUCH LANDS.
   (IV) SUCH LANDS SHALL BE ENTERED ON THE EXEMPT PORTION OF THE  ASSESS-
 MENT  ROLL,  NOTWITHSTANDING  THE FACT THAT THEY ARE TAXABLE PURSUANT TO
 THIS TITLE. PROVIDED, THAT NO SUCH ENTRY SHALL BE MADE IN THE CASE OF AN
 ASSESSMENT ADJUSTMENT MADE BY THE COMMISSIONER PURSUANT TO PARAGRAPH (C)
 OF SUBDIVISION THREE OF SECTION FIVE HUNDRED FORTY-TWO OF THIS TITLE  OR
 SECTION 15-2115 OF THE ENVIRONMENTAL CONSERVATION LAW, OR IN THE CASE OF
 STATE  AID  PAYABLE  PURSUANT TO SECTION FIVE HUNDRED FORTY-FIVE OF THIS
 TITLE DUE TO A REDUCTION IN THE ASSESSMENT OF TAXABLE STATE LAND.
   (V) SUCH LANDS SHALL BE DISREGARDED WHEN CALCULATING  STATE  EQUALIZA-
 TION RATES AND TAX RATES.
   (VI)  WHEN A SCHOOL DISTRICT RECEIVES PAYMENTS OF TAXES ON STATE LANDS
 PURSUANT TO THIS SUBDIVISION, ANY ACTUAL  VALUATION  COMPUTED  FOR  SUCH
 SCHOOL  DISTRICT  PURSUANT  TO PARAGRAPH C OF SUBDIVISION ONE OF SECTION
 THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW  SHALL  INCLUDE  THE  ACTUAL
 VALUATION EQUIVALENT OF THOSE PAYMENTS. THE COMMISSIONER SHALL DETERMINE
 SUCH  ACTUAL  VALUATION  EQUIVALENT  BY  DIVIDING  THE  PAYMENT MADE, AS
 REPORTED TO SUCH COMMISSIONER BY THE COMPTROLLER, BY THE SCHOOL TAX RATE
 THAT WAS APPLIED TO REAL PROPERTY ON THAT YEAR'S ASSESSMENT ROLL OR,  IF
 APPLICABLE,  THE  SPECIAL  APPORTIONMENT  RATE  DETERMINED  PURSUANT  TO
 SECTION TWELVE HUNDRED TWENTY-SEVEN OF THIS CHAPTER  AND  DIVIDING  SUCH
 RESULT  BY  THE  FINAL STATE EQUALIZATION RATE FOR THAT ROLL. THE ACTUAL
 VALUATION EQUIVALENT SHALL BE REPORTED TO THE STATE COMPTROLLER AND  THE
 COMMISSIONER  OF  EDUCATION,  AND  SHALL  BE USED BY THE COMMISSIONER OF

 S. 7509                            15                            A. 9509
 
 EDUCATION IN THE DETERMINATION OF ANY STATE AVERAGE THAT USES REAL PROP-
 ERTY TAXES LEVIED AGAINST AND/OR ACTUAL VALUATION BASED UPON THE  CORRE-
 SPONDING  ASSESSMENT  ROLL.  EACH  SCHOOL DISTRICT RECEIVING PAYMENTS OF
 TAXES  ON STATE LANDS PURSUANT TO THIS SUBDIVISION SHALL ANNUALLY REPORT
 THOSE PAYMENTS TO THE COMMISSIONER OF EDUCATION,  WITH  A  COPY  TO  THE
 COMMISSIONER,  AS  A  CONDITION TO RECEIVING ANY AID PURSUANT TO SECTION
 THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW.
   (E) THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO THE  PAYMENT
 OF  STATE  AID PURSUANT TO SECTION FIVE HUNDRED FORTY-FIVE OF THIS TITLE
 IN RELATION TO PROPERTY THAT HAS BECOME EXEMPT FROM TAXATION DUE TO  ITS
 ACQUISITION BY THE STATE OR AN AGENCY OF THE STATE.
   § 2. This act shall take effect immediately.
 
                                  PART G
 
   Section  1. Section 4 of chapter 475 of the laws of 2013, amending the
 real property tax law relating to assessment ceilings for  local  public
 utility mass real property, is amended to read as follows:
   §  4. This act shall take effect on the first of January of the second
 calendar year commencing after this act shall  have  become  a  law  and
 shall  apply  to  assessment rolls with taxable status dates on or after
 such date; provided, however, that this act shall expire and  be  deemed
 repealed  [four]  EIGHT  years  after such effective date; and provided,
 further, that no assessment of local public utility mass  real  property
 appearing  on  the  municipal assessment roll with a taxable status date
 occurring in the first calendar year after this act shall have become  a
 law  shall  be  less  than  ninety  percent or more than one hundred ten
 percent of the assessment of the same property  on  the  date  this  act
 shall have become a law.
   §  2.  Subdivision 3 of section 499-kkkk of the real property tax law,
 as added by chapter 475 of the laws of  2013,  is  amended  to  read  as
 follows:
   3.  (A)  For assessment rolls with taxable status dates in each of the
 three calendar years including and following  the  year  in  which  this
 section  shall  take effect, the commissioner shall establish no assess-
 ment ceiling that is less than ninety percent or more than  one  hundred
 ten  percent  of  the  assessment of such local public utility mass real
 property appearing on the  municipal  assessment  roll  with  a  taxable
 status  date  occurring  in the second preceding calendar year from when
 this section shall take effect, except that the commissioner may  estab-
 lish assessment ceilings below the ninety percent level or above the one
 hundred  ten  percent  level to take into account any change in level of
 assessment and/or to take into account any additions or  retirements  to
 public  utility  mass real property or litigation affecting the value or
 taxable status of the local public utility mass real property  initiated
 prior to the effective date of this section.
   (B)  FOR  ASSESSMENT  ROLLS WITH TAXABLE STATUS DATES IN THE YEARS TWO
 THOUSAND EIGHTEEN, TWO THOUSAND NINETEEN AND TWO  THOUSAND  TWENTY,  THE
 COMMISSIONER  SHALL  ESTABLISH  NO  ASSESSMENT CEILING THAT IS BELOW THE
 LOWER LIMIT OR ABOVE THE UPPER LIMIT SPECIFIED IN THIS PARAGRAPH, EXCEPT
 THAT THE COMMISSIONER MAY ESTABLISH ASSESSMENT CEILINGS BELOW SUCH LOWER
 LIMIT OR ABOVE SUCH UPPER LIMIT TO TAKE INTO ACCOUNT ANY CHANGE IN LEVEL
 OF ASSESSMENT AND/OR TO TAKE INTO ACCOUNT ANY ADDITIONS  OR  RETIREMENTS
 TO  PUBLIC  UTILITY MASS REAL PROPERTY OR LITIGATION AFFECTING THE VALUE
 OR TAXABLE STATUS OF THE LOCAL PUBLIC UTILITY MASS REAL PROPERTY  INITI-
 ATED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION.

 S. 7509                            16                            A. 9509

   (I)  FOR  ASSESSMENT  ROLLS  WITH TAXABLE STATUS DATES IN TWO THOUSAND
 EIGHTEEN, THE ASSESSMENT CEILING SHALL NOT  BE  LESS  THAN  SEVENTY-FIVE
 PERCENT  OR  MORE THAN ONE HUNDRED TWENTY-FIVE PERCENT OF THE ASSESSMENT
 OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI-
 PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO
 THOUSAND FOURTEEN.
   (II)  FOR  ASSESSMENT  ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND
 NINETEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN FIFTY PERCENT OR
 MORE THAN ONE HUNDRED FIFTY PERCENT OF  THE  ASSESSMENT  OF  SUCH  LOCAL
 PUBLIC  UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICIPAL ASSESSMENT
 ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND FOUR-
 TEEN.
   (III) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN  TWO  THOUSAND
 TWENTY,  THE  ASSESSMENT  CEILING  SHALL  NOT  BE  LESS THAN TWENTY-FIVE
 PERCENT OR MORE THAN ONE HUNDRED SEVENTY-FIVE PERCENT OF THE  ASSESSMENT
 OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI-
 PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO
 THOUSAND FOURTEEN.
   §  3.  This act shall take effect immediately, provided, however, that
 the amendments to subdivision three of  section  499-kkkk  of  the  real
 property  tax  law  made by section two of this act shall not affect the
 repeal of such section and shall be deemed to be repealed therewith.
 
                                  PART H

   Section 1. Subsection (c) of section 683 of the tax law is amended  by
 adding a new paragraph 12 to read as follows:
   (12)   EXCEPT  AS  OTHERWISE  PROVIDED  IN  PARAGRAPH  THREE  OF  THIS
 SUBSECTION, OR AS OTHERWISE PROVIDED IN  THIS  SECTION  WHERE  A  LONGER
 PERIOD  OF  TIME  MAY  APPLY,  IF A TAXPAYER FILES AN AMENDED RETURN, AN
 ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON  THE  FILING  OF
 THE  AMENDED  RETURN),  INCLUDING  RECOVERY OF A PREVIOUSLY PAID REFUND,
 ATTRIBUTABLE TO A CHANGE OR CORRECTION ON  THE  AMENDED  RETURN  FROM  A
 PRIOR  RETURN  MAY  BE  MADE  AT  ANY TIME WITHIN THREE YEARS AFTER SUCH
 AMENDED RETURN IS FILED.
   § 2. Subsection (c) of section 1083 of  the  tax  law  is  amended  by
 adding a new paragraph 12 to read as follows:
   (12)   EXCEPT  AS  OTHERWISE  PROVIDED  IN  PARAGRAPH  THREE  OF  THIS
 SUBSECTION, OR AS OTHERWISE PROVIDED IN  THIS  SECTION  WHERE  A  LONGER
 PERIOD  OF  TIME  MAY  APPLY,  IF A TAXPAYER FILES AN AMENDED RETURN, AN
 ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON  THE  FILING  OF
 THE  AMENDED  RETURN),  INCLUDING  RECOVERY OF A PREVIOUSLY PAID REFUND,
 ATTRIBUTABLE TO A CHANGE OR CORRECTION ON  THE  AMENDED  RETURN  FROM  A
 PRIOR  RETURN  MAY  BE  MADE  AT  ANY TIME WITHIN THREE YEARS AFTER SUCH
 AMENDED RETURN IS FILED.
   § 3. Subdivision (c) of section 11-1783 of the administrative code  of
 the  city  of New York is amended by adding a new paragraph 9 to read as
 follows:
   (9) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF  THIS  SUBDIVI-
 SION,  OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF
 TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT  OF
 TAX  (IF  NOT  DEEMED  TO  HAVE BEEN MADE UPON THE FILING OF THE AMENDED
 RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO
 A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY  BE
 MADE AT ANY TIME WITHIN THREE YEARS AFTER SUCH AMENDED RETURN IS FILED.

 S. 7509                            17                            A. 9509
 
   § 4. This act shall take effect immediately and shall apply to amended
 returns filed on or after the effective date of this act.
 
                                  PART I
 
   Section  1.  Paragraph  1 of subdivision (d) of section 658 of the tax
 law, as amended by chapter 166 of the laws of 1991, is amended  to  read
 as follows:
   (1) The commissioner of taxation and finance may prescribe regulations
 and  instructions  requiring returns of information to be made and filed
 on or before February twenty-eighth of each year as to  the  payment  or
 crediting in any calendar year of amounts of six hundred dollars or more
 to  any taxpayer under this article. Such returns may be required of any
 person, including lessees or mortgagors of real  or  personal  property,
 fiduciaries, employers, and all officers and employees of this state, or
 of  any  municipal  corporation  or political subdivision of this state,
 having the control, receipt, custody, disposal or payment  of  interest,
 rents,  salaries,  wages,  premiums, annuities, compensations, remunera-
 tions, emoluments or other  fixed  or  determinable  gains,  profits  or
 income,  except interest coupons payable to bearer. Information required
 to be furnished pursuant to paragraph four of subsection (a) of  section
 six  hundred  seventy-four  on a quarterly combined withholding and wage
 reporting return covering [the last] EACH calendar quarter of each  year
 and relating to tax withheld on wages paid by an employer to an employee
 for [the full] EACH calendar [year] QUARTER, shall constitute the return
 of  information  required  to be made under this section with respect to
 such wages.
   § 2. Subparagraph (A) of paragraph 4 of subsection (a) of section  674
 of the tax law, as amended by section 1 of subpart E of part VI of chap-
 ter 57 of the laws of 2009, is amended to read as follows:
   (A)  All  employers  described  in  paragraph one of subsection (a) of
 section six hundred seventy-one of  this  part,  including  those  whose
 wages paid are not sufficient to require the withholding of tax from the
 wages  of  any of their employees, all employers required to provide the
 wage reporting information for the employees  described  in  subdivision
 one  of  section  one  hundred  seventy-one-a  of  this chapter, and all
 employers  liable  for  unemployment  insurance  contributions  or   for
 payments  in  lieu of such contributions pursuant to article eighteen of
 the labor law, shall file a quarterly combined withholding, wage report-
 ing and unemployment insurance return detailing the  preceding  calendar
 quarter's  withholding  tax  transactions, such quarter's wage reporting
 information, SUCH QUARTER'S WITHHOLDING RECONCILIATION INFORMATION, such
 quarter's unemployment insurance contributions, and such  other  related
 information  as  the commissioner of taxation and finance or the commis-
 sioner of labor, as applicable, may prescribe. [In addition, the  return
 covering the last calendar quarter of each year shall also include with-
 holding reconciliation information for such calendar year.] Such returns
 shall  be  filed  no  later than the last day of the month following the
 last day of each calendar quarter.
   § 3. Paragraph 3 of subsection (v) of section 685 of the tax  law,  as
 amended  by  chapter  477  of  the  laws  of 1998, is amended to read as
 follows:
   (3) Failure to  provide  complete  and  correct  employee  withholding
 reconciliation  information.  In the case of a failure by an employer to
 provide complete and correct [annual] QUARTERLY withholding  information
 relating  to  individual  employees on a quarterly combined withholding,

 S. 7509                            18                            A. 9509
 
 wage reporting and unemployment insurance  return  covering  [the  last]
 EACH calendar quarter of a year, such employer shall, unless it is shown
 that  such  failure  is  due  to reasonable cause and not due to willful
 neglect,  pay a penalty equal to the product of fifty dollars multiplied
 by the number of employees for whom such information  is  incomplete  or
 incorrect;  provided,  however,  that  if  the  number of such employees
 cannot be determined  from  the  quarterly  combined  withholding,  wage
 reporting  and  unemployment  insurance  return,  the  commissioner  may
 utilize any information in the commissioner's possession in making  such
 determination.  The total amount of the penalty imposed pursuant to this
 paragraph on an employer for any such failure for [the last] EACH calen-
 dar quarter of a year shall not exceed ten thousand dollars.
   § 4. This act shall take effect immediately and shall apply to  calen-
 dar quarters beginning on or after January 1, 2019.
 
                                  PART J
 
   Section 1. Paragraph (i) of subdivision (d) of section 1105 of the tax
 law, as amended by chapter 405 of the laws of 1971 and subparagraph 3 as
 amended  by  section 1 of part DD of chapter 407 of the laws of 1999, is
 amended to read as follows:
   (i) The receipts from every sale, OTHER  THAN  SALES  FOR  RESALE,  of
 beer,  wine  or  other  alcoholic  beverages  or  any other drink of any
 nature, or from every sale, OTHER THAN SALES FOR  RESALE,  of  food  and
 drink  of  any  nature or of food alone, when sold in or by restaurants,
 taverns or other establishments in this state, or by caterers, including
 in the amount of such receipts  any  cover,  minimum,  entertainment  or
 other  charge  made to patrons or customers (except those receipts taxed
 pursuant to subdivision (f) of this section):
   (1) in all instances where the sale is for consumption on the premises
 where sold;
   (2) in those instances where the vendor or any person  whose  services
 are  arranged for by the vendor, after the delivery of the food or drink
 by or on behalf of the vendor for consumption off the  premises  of  the
 vendor,  serves  or  assists  in serving, cooks, heats or provides other
 services with respect to the food or drink; and
   (3) in those instances where  the  sale  is  made  through  a  vending
 machine that is activated by use of coin, currency, credit card or debit
 card  (except  the  sale of drinks in a heated state made through such a
 vending machine) or is for consumption off the premises of  the  vendor,
 except  where food (other than sandwiches) or drink or both are (A) sold
 in an unheated state and, (B) are of a type commonly sold  for  consump-
 tion off the premises and in the same form and condition, quantities and
 packaging,  in  establishments  which  are  food stores other than those
 principally engaged in selling foods prepared and ready to be eaten.
   § 2. This act shall take effect June 1, 2018 and shall apply to  sales
 made on and after such date.
 
                                  PART K
 
   Section  1.  The  tax  law is amended by adding a new section 171-z to
 read as follows:
   § 171-Z. INFORMATION SHARING WITH THE COMPTROLLER REGARDING  UNCLAIMED
 FUNDS.  1. NOTWITHSTANDING ANY OTHER LAW, THE COMMISSIONER IS AUTHORIZED
 TO RELEASE TO THE COMPTROLLER  INFORMATION  REGARDING  FIXED  AND  FINAL
 UNWARRANTED  DEBTS  OF  TAXPAYERS  FOR  PURPOSES OF COLLECTING UNCLAIMED

 S. 7509                            19                            A. 9509
 
 FUNDS FROM THE COMPTROLLER TO SATISFY FIXED AND FINAL UNWARRANTED  DEBTS
 OWED  BY  TAXPAYERS. FOR PURPOSES OF THIS SECTION, THE TERM "UNWARRANTED
 DEBT" SHALL MEAN PAST-DUE TAX LIABILITIES, INCLUDING UNPAID TAX,  INTER-
 EST AND PENALTY, THAT THE COMMISSIONER IS REQUIRED BY LAW TO COLLECT AND
 THAT  HAVE  BECOME  FIXED AND FINAL SUCH THAT THE TAXPAYER NO LONGER HAS
 ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW AND  A  WARRANT  HAS  NOT
 BEEN  FILED;  AND  THE TERM "TAXPAYER" SHALL MEAN ANY INDIVIDUAL, CORPO-
 RATION, PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP OR COMPANY,  PARTNER,
 MEMBER,  MANAGER, SOLE PROPRIETORSHIP, ESTATE, TRUST, FIDUCIARY OR ENTI-
 TY, WHO OR WHICH HAS BEEN IDENTIFIED AS OWING TAXES TO THE  STATE.  THIS
 SECTION  SHALL  NOT BE DEEMED TO ABROGATE OR LIMIT IN ANY WAY THE POWERS
 AND AUTHORITY OF THE COMPTROLLER TO SET OFF DEBTS OWED  THE  STATE  FROM
 UNCLAIMED FUNDS, UNDER THE CONSTITUTION OF THE STATE OR ANY OTHER LAW.
   2.  THE  COMPTROLLER SHALL KEEP ALL INFORMATION HE OR SHE OBTAINS FROM
 THE COMMISSIONER CONFIDENTIAL, AND ANY EMPLOYEE, AGENT OR REPRESENTATIVE
 OF THE COMPTROLLER IS PROHIBITED FROM DISCLOSING ANY  TAXPAYER  INFORMA-
 TION  RECEIVED  UNDER THIS SECTION TO ANYONE OTHER THAN THE COMMISSIONER
 OR STAFF OF THE DEPARTMENT OR STAFF  OF  THE  DEPARTMENT  OF  AUDIT  AND
 CONTROL FOR THE PURPOSES DESCRIBED IN THIS SECTION.
   § 2. This act shall take effect immediately.
 
                                  PART L
 
   Section 1. Subdivision 2 of section 136 of the social services law, as
 amended  by  section 24 of part B of chapter 436 of the laws of 1997, is
 amended to read as follows:
   2. All communications and information relating to a  person  receiving
 public  assistance  or  care  obtained  by any social services official,
 service officer, or employee in the course of his or her work  shall  be
 considered  confidential  and,  except  as  otherwise  provided  in this
 section, shall be disclosed only to the  commissioner,  or  his  or  her
 authorized  representative,  the  commissioner of labor, or   his or her
 authorized representative, the commissioner of health,  or  his  or  her
 authorized  representative, THE COMMISSIONER OF TAXATION AND FINANCE, OR
 HIS OR HER AUTHORIZED  REPRESENTATIVE  (OTHER  THAN  THE  DISCLOSURE  OF
 INFORMATION  THAT  HAS  BEEN  PROHIBITED  BY  FEDERAL  LAW), the welfare
 inspector general, or his or her authorized representative,  the  county
 board  of  supervisors,  city council, town board or other board or body
 authorized and required to appropriate funds for public  assistance  and
 care  in  and  for such county, city or town or its authorized represen-
 tative or, by authority of the county,  city  or  town  social  services
 official, to a person or agency considered entitled to such information.
 Nothing  herein shall preclude a   social services official from report-
 ing to an appropriate agency  or  official,  including  law  enforcement
 agencies  or  officials,  known  or   suspected instances of physical or
 mental injury, sexual abuse or exploitation, sexual contact with a minor
 or negligent treatment or maltreatment of a child of which the  official
 becomes  aware  in  the administration of public assistance and care nor
 shall it preclude communication with the federal immigration and  natur-
 alization service regarding the immigration status of any individual.
   § 2. This act shall take effect immediately.
 
                                  PART M

   Section  1.  The tax law is amended by adding a new section 44 to read
 as follows:

 S. 7509                            20                            A. 9509
 
   § 44.  INVESTMENT  MANAGEMENT  SERVICES.  (A)  FOR  PURPOSES  OF  THIS
 SECTION,  THE  TERM "INVESTMENT MANAGEMENT SERVICES" TO A PARTNERSHIP, S
 CORPORATION OR ENTITY INCLUDES (1) RENDERING INVESTMENT ADVICE REGARDING
 THE PURCHASE OR SALE OF  SECURITIES  AS  DEFINED  IN  PARAGRAPH  TWO  OF
 SUBSECTION  (C)  OF  SECTION  FOUR  HUNDRED SEVENTY-FIVE OF THE INTERNAL
 REVENUE CODE WITHOUT REGARD TO THE LAST SENTENCE  THEREOF,  REAL  ESTATE
 HELD FOR RENTAL OR INVESTMENT, INTERESTS IN PARTNERSHIPS, COMMODITIES AS
 DEFINED  IN  PARAGRAPH  TWO  OF  SUBSECTION  (E) OF SECTION FOUR HUNDRED
 SEVENTY-FIVE OF THE INTERNAL REVENUE  CODE,  OR  OPTIONS  OR  DERIVATIVE
 CONTRACTS WITH RESPECT TO ANY OF THE FOREGOING; (2) MANAGING, ACQUIRING,
 OR  DISPOSING OF ANY SUCH ASSET; (3) ARRANGING FINANCING WITH RESPECT TO
 THE ACQUISITION OF ANY SUCH ASSET; AND (4) RELATED ACTIVITIES IN SUPPORT
 OF ANY SERVICE DESCRIBED IN PARAGRAPHS ONE, TWO, OR THREE OF THIS SUBDI-
 VISION.
   (B) SPECIAL RULE FOR PARTNERSHIPS AND S CORPORATIONS.  NOTWITHSTANDING
 ANY STATE OR FEDERAL LAW TO THE CONTRARY:
   (1)  WHERE  A  PARTNER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR THE
 PARTNERSHIP, THE PARTNER WILL NOT BE TREATED AS A PARTNER  FOR  PURPOSES
 OF THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE PARTNER'S DISTRIBUTIVE
 SHARE  OF  INCOME,  GAIN,  LOSS  AND DEDUCTION, INCLUDING ANY GUARANTEED
 PAYMENTS, THAT IS IN EXCESS OF THE AMOUNT SUCH DISTRIBUTIVE SHARE  WOULD
 HAVE BEEN IF THE PARTNER HAD PERFORMED NO INVESTMENT MANAGEMENT SERVICES
 FOR  THE  PARTNERSHIP.  INSTEAD, SUCH EXCESS AMOUNT SHALL BE TREATED FOR
 PURPOSES OF ARTICLE NINE-A OF THIS CHAPTER AS  A  BUSINESS  RECEIPT  FOR
 SERVICES  AND  FOR  PURPOSES  OF  ARTICLE  TWENTY-TWO OF THIS CHAPTER AS
 INCOME ATTRIBUTABLE TO A  TRADE,  BUSINESS,  PROFESSION  OR  OCCUPATION.
 PROVIDED,  HOWEVER, THE AMOUNT OF THE DISTRIBUTIVE SHARE THAT WOULD HAVE
 BEEN DETERMINED  IF  THE  PARTNER  PERFORMED  NO  INVESTMENT  MANAGEMENT
 SERVICES SHALL NOT BE LESS THAN ZERO.
   (2)  WHERE  A  SHAREHOLDER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR
 THE S CORPORATION, THE SHAREHOLDER WILL NOT BE TREATED AS A  SHAREHOLDER
 FOR  PURPOSES  OF  THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE SHARE-
 HOLDER'S PRO RATA SHARE OF INCOME, GAIN, LOSS AND DEDUCTION THAT  IS  IN
 EXCESS  OF  THE AMOUNT SUCH PRO RATA SHARE WOULD HAVE BEEN IF THE SHARE-
 HOLDER HAD PERFORMED NO INVESTMENT MANAGEMENT  SERVICES.  INSTEAD,  SUCH
 EXCESS  AMOUNT  SHALL  BE  TREATED FOR PURPOSES OF ARTICLE TWENTY-TWO OF
 THIS CHAPTER AS INCOME ATTRIBUTABLE TO A TRADE, BUSINESS, PROFESSION  OR
 OCCUPATION.  PROVIDED,  HOWEVER,  THE  AMOUNT OF THE PRO RATA SHARE THAT
 WOULD HAVE BEEN DETERMINED IF  THE  SHAREHOLDER  PERFORMED  NO  SERVICES
 SHALL NOT BE LESS THAN ZERO.
   (3)  A  PARTNER  OR  SHAREHOLDER  WILL  NOT  BE DEEMED TO BE PROVIDING
 INVESTMENT MANAGEMENT SERVICES UNDER THIS SECTION  IF  AT  LEAST  EIGHTY
 PERCENT  OF  THE AVERAGE FAIR MARKET VALUE OF THE ASSETS OF THE PARTNER-
 SHIP OR S CORPORATION DURING THE TAXABLE YEAR  CONSIST  OF  REAL  ESTATE
 HELD FOR RENTAL OR INVESTMENT.
   (C)  IN  ADDITION TO ANY OTHER TAXES OR SURCHARGES IMPOSED PURSUANT TO
 ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER, ANY  CORPORATION,  PARTNER
 OR SHAREHOLDER PROVIDING INVESTMENT MANAGEMENT SERVICES SHALL BE SUBJECT
 TO  AN  ADDITIONAL  TAX,  REFERRED  TO AS THE "CARRIED INTEREST FAIRNESS
 FEE".  SUCH CARRIED INTEREST FAIRNESS FEE SHALL BE  EQUAL  TO  SEVENTEEN
 PERCENT  OF  THE EXCESS AMOUNT DETERMINED PURSUANT TO SUBDIVISION (B) OF
 THIS SECTION; PROVIDED, HOWEVER, (I) IN THE CASE  OF  A  CORPORATION  OR
 SHAREHOLDER  OF  AN  S  CORPORATION PROVIDING SUCH INVESTMENT MANAGEMENT
 SERVICES, SUCH FEE SHALL BE EQUAL TO SEVENTEEN  PERCENT  OF  THE  EXCESS
 AMOUNT  APPORTIONED  TO  THE  STATE  BY  APPLYING THE CORPORATION'S OR S
 CORPORATION'S APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO  HUNDRED

 S. 7509                            21                            A. 9509
 
 TEN-A OF THIS CHAPTER; (II) IN THE CASE OF A NONRESIDENT PARTNER PROVID-
 ING  SUCH  INVESTMENT  MANAGEMENT  SERVICES,  SUCH FEE SHALL BE EQUAL TO
 SEVENTEEN PERCENT OF THE EXCESS AMOUNT DERIVED FROM NEW YORK SOURCES  AS
 DETERMINED  UNDER  SECTION  SIX HUNDRED THIRTY-TWO OF THIS CHAPTER. SUCH
 CARRIED INTEREST FAIRNESS FEE SHALL BE ADMINISTERED IN  ACCORDANCE  WITH
 ARTICLE  NINE-A OR TWENTY-TWO OF THIS CHAPTER, AS APPLICABLE, UNTIL SUCH
 TIME AS THE COMMISSIONER OF TAXATION AND FINANCE HAS NOTIFIED THE LEGIS-
 LATIVE BILL  DRAFTING  COMMISSION  THAT  FEDERAL  LEGISLATION  HAS  BEEN
 ENACTED  THAT TREATS THE PROVISION OF INVESTMENT MANAGEMENT SERVICES FOR
 FEDERAL TAX PURPOSES SUBSTANTIALLY THE SAME AS PROVIDED IN THIS SECTION.
   § 2. Paragraph (a) of subdivision 6 of section 208 of the tax law,  as
 amended  by  section  5  of part T of chapter 59 of the laws of 2015, is
 amended to read as follows:
    (a) (i) The term "investment income" means income, including  capital
 gains  in  excess  of  capital  losses,  from investment capital, to the
 extent included in  computing  entire  net  income,  less,  (A)  in  the
 discretion  of  the  commissioner,  any interest deductions allowable in
 computing entire net income which are directly or  indirectly  attribut-
 able to investment capital or investment income, AND (B) ANY NET CAPITAL
 GAIN  INCLUDED IN FEDERAL TAXABLE INCOME THAT MUST BE RECHARACTERIZED AS
 A BUSINESS RECEIPT PURSUANT  TO  SECTION  FORTY-FOUR  OF  THIS  CHAPTER;
 provided, however, that in no case shall investment income exceed entire
 net  income.  (ii) If the amount of interest deductions subtracted under
 subparagraph (i) of this paragraph exceeds investment income, the excess
 of such amount over investment income must be added back to  entire  net
 income.  (iii)  If  the  taxpayer's investment income determined without
 regard to the interest deductions subtracted under subparagraph  (i)  of
 this  paragraph  comprises  more  than  eight  percent of the taxpayer's
 entire net income, investment income determined without regard  to  such
 interest deductions cannot exceed eight percent of the taxpayer's entire
 net income.
   § 3. Subsection (b) of section 617 of the tax law, as amended by chap-
 ter 606 of the laws of 1984, is amended to read as follows:
   (b)  Character  of  items. [Each] EXCEPT AS PROVIDED IN SECTION FORTY-
 FOUR OF THIS CHAPTER, EACH item of partnership and S corporation income,
 gain, loss, or deduction shall have the same character for a partner  or
 shareholder under this article as for federal income tax purposes. Where
 an  item  is not characterized for federal income tax purposes, it shall
 have the same character for a partner  or  shareholder  as  if  realized
 directly  from  the  source  from which realized by the partnership or S
 corporation or incurred in the same manner as incurred by  the  partner-
 ship or S corporation.
   § 4. Subsection (d) of section 631 of the tax law, as amended by chap-
 ter 28 of the laws of 1987, is amended to read as follows:
   (d)  Purchase  and sale for own account.-- A nonresident, other than a
 dealer holding property primarily for sale to customers in the  ordinary
 course  of  his  OR  HER  trade  or business OR A PARTNER OR SHAREHOLDER
 PERFORMING  INVESTMENT  MANAGEMENT  SERVICES  AS  DESCRIBED  IN  SECTION
 FORTY-FOUR  OF THIS CHAPTER, shall not be deemed to carry on a business,
 trade, profession or occupation in this state solely by  reason  of  the
 purchase  and sale of property or the purchase, sale or writing of stock
 option contracts, or both, for his own account.
   § 5. The opening paragraph of subsection (b) of section 632 of the tax
 law, as amended by chapter 28 of the laws of 1987, is amended to read as
 follows:

 S. 7509                            22                            A. 9509
 
   [In] EXCEPT AS OTHERWISE PROVIDED IN SECTION FORTY-FOUR OF THIS  CHAP-
 TER,  IN  determining  the sources of a nonresident partner's income, no
 effect shall be given  to  a  provision  in  the  partnership  agreement
 which--
   §  6.  For  taxable  years  beginning  on or after January 1, 2018 and
 before January 1, 2019, (i) no addition to tax under subsection  (c)  of
 section  685  or  subsection (c) of section 1085 of the tax law shall be
 imposed with respect to any underpayment attributable to the  amendments
 made  by  this  act  of any estimated taxes that are required to be paid
 prior to the effective date of this  act,  provided  that  the  taxpayer
 timely  made  those payments; and (ii) the required installment of esti-
 mated tax described in clause (ii) of subparagraph (B) of paragraph 3 of
 subsection (c) of section 685 of the tax law, and the exception to addi-
 tion for underpayment of estimated tax described in paragraph 1 or 2  of
 subsection  (d)  of  section  1085  of  the  tax law, in relation to the
 preceding year's return, shall be calculated as if the  amendments  made
 by this act had been in effect for that entire preceding year.
   §  7.  This  act  shall take effect upon the enactment into law by the
 states of Connecticut, New Jersey,  Massachusetts  and  Pennsylvania  of
 legislation  having  substantially  the  same effect as this act and the
 enactments by such states have taken effect  in  each  state  and  shall
 apply  for  taxable  years  beginning  on  or after such date; provided,
 however, if the states of Connecticut,  New  Jersey,  Massachusetts  and
 Pennsylvania  have already enacted such legislation, this act shall take
 effect immediately and shall apply for taxable  years  beginning  on  or
 after  January  1, 2018; provided further that the commissioner of taxa-
 tion and finance shall notify the legislative bill  drafting  commission
 upon the enactment of such legislation by the states of Connecticut, New
 Jersey, Massachusetts and Pennsylvania in order that such commission may
 maintain an accurate and timely effective data base of the official text
 of  the laws of the state of New York in furtherance of effectuating the
 provisions of section 44 of the legislative law and section 70-b of  the
 public officers law.
 
                                  PART N
 
   Section  1.  Section 2016 of the tax law, as amended by chapter 401 of
 the laws of 1987, is amended to read as follows:
   § 2016. Judicial review. A decision of the tax appeals tribunal, which
 is not subject to any further administrative review, shall  finally  and
 irrevocably  decide  all  the  issues  which  were raised in proceedings
 before the division of tax appeals upon which  such  decision  is  based
 unless,  within  four  months after notice of such decision is served by
 the tax appeals tribunal upon every party to the proceeding before  such
 tribunal  by  certified  mail  or  personal  service, the petitioner who
 commenced the proceeding [petitions] OR THE COMMISSIONER, OR BOTH, PETI-
 TION for judicial review in the manner provided by article seventy-eight
 of the civil practice law and rules, except  as  otherwise  provided  in
 this  [section]  CHAPTER.    Such  service  by  certified  mail shall be
 complete upon deposit of such notice, enclosed in a  post-paid  properly
 addressed  wrapper,  in  a  post office or official depository under the
 exclusive care and custody of the United States postal service.    [The]
 WHERE THE petitioner WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF
 TAX  APPEALS  FILES  A  PETITION FOR JUDICIAL REVIEW, THE PETITION shall
 designate the tax appeals tribunal and the commissioner [of taxation and
 finance] as respondents in the proceeding for judicial  review.    WHERE

 S. 7509                            23                            A. 9509
 
 THE  COMMISSIONER  FILES  A  PETITION  FOR JUDICIAL REVIEW, THE PETITION
 SHALL  DESIGNATE  THE  TAX  APPEALS  TRIBUNAL  AND  THE  PETITIONER  WHO
 COMMENCED  THE PROCEEDING BEFORE THE DIVISION OF TAX APPEALS AS RESPOND-
 ENTS  IN  THE  PROCEEDING  FOR JUDICIAL REVIEW. The tax appeals tribunal
 shall not participate in proceedings for judicial review  of  its  deci-
 sions and such proceedings for judicial review shall be commenced in the
 appellate  division of the supreme court, third department. In all other
 respects the provisions and standards of article  seventy-eight  of  the
 civil  practice law and rules shall apply.  The record to be reviewed in
 such proceedings for judicial review shall include the determination  of
 the  administrative law judge, the decision of the tax appeals tribunal,
 the stenographic transcript of the hearing before the administrative law
 judge, the transcript of any oral proceedings  before  the  tax  appeals
 tribunal  and  any  exhibit  or  document submitted into evidence at any
 proceeding in the division of tax appeals upon which  such  decision  is
 based.
   §  2.  This act shall take effect immediately and shall apply to deci-
 sions and orders issued by the tax appeals tribunal  on  or  after  such
 date.
 
                                  PART O
 
   Section  1.  Subparagraph  (B)  of  paragraph  1  of subsection (b) of
 section 605 of the tax law, as amended by chapter  28  of  the  laws  of
 1987, is amended to read as follows:
   (B)  who  [is  not  domiciled in this state but] maintains a permanent
 place of abode in this state and spends in the aggregate more  than  one
 hundred  eighty-three days of the taxable year in this state, WHETHER OR
 NOT DOMICILED IN THIS STATE FOR ANY PORTION OF THE TAXABLE YEAR,  unless
 such  individual  is in active service in the armed forces of the United
 States.
   § 2. Paragraph 2 of subsection (a) of section 1305 of the tax law,  as
 amended  by  chapter  225  of  the  laws  of 1977, is amended to read as
 follows:
   (2) who [is not domiciled in such  city  but]  maintains  a  permanent
 place  of  abode  in such city and spends in the aggregate more than one
 hundred eighty-three days of the taxable year in such city,  WHETHER  OR
 NOT  DOMICILED  IN THIS CITY FOR ANY PORTION OF THE TAXABLE YEAR, unless
 such individual is in active service in the armed forces of  the  United
 States.
   §  3.  Subparagraph  (B)  of paragraph 1 of subdivision (b) of section
 11-1705 of the administrative code of the city of New York,  as  amended
 by chapter 333 of the laws of 1987, is amended to read as follows:
   (B)  who  [is  not  domiciled  in this city but] maintains a permanent
 place of abode in this city and spends in the aggregate  more  than  one
 hundred  eighty-three  days of the taxable year in this city, WHETHER OR
 NOT DOMICILED IN THIS CITY FOR ANY PORTION OF THE TAXABLE  YEAR,  unless
 such  individual  is in active service in the armed forces of the United
 States.
   § 4. This act shall take effect immediately and  shall  apply  to  all
 taxable  years for which the statute of limitations for seeking a refund
 or assessing additional tax is still open.
 
                                  PART P

 S. 7509                            24                            A. 9509
 
   Section 1. Paragraph (1) of subsection (c-1) of section 606 of the tax
 law, as amended by section 1 of part L1 of chapter 109 of  the  laws  of
 2006, is amended to read as follows:
   (1)  A  resident taxpayer shall be allowed a credit as provided herein
 equal to the greater of one hundred dollars times the number of qualify-
 ing children of the taxpayer or the applicable percentage of  the  child
 tax  credit allowed the taxpayer under section twenty-four of the inter-
 nal revenue code for the same taxable year for  each  qualifying  child.
 Provided,  however,  in  the  case  of a taxpayer whose federal adjusted
 gross income exceeds  the  applicable  threshold  amount  set  forth  by
 section  24(b)(2) of the Internal Revenue Code, the credit shall only be
 equal to the applicable percentage of the child tax credit  allowed  the
 taxpayer under section 24 of the Internal Revenue Code for each qualify-
 ing child. For the purposes of this subsection, a qualifying child shall
 be  a  child  who  meets the definition of qualified child under section
 24(c) of the internal revenue code and is at least four  years  of  age.
 The  applicable  percentage shall be thirty-three percent.  FOR PURPOSES
 OF THIS SUBSECTION, ANY REFERENCE TO SECTION 24 OF THE INTERNAL  REVENUE
 CODE  SHALL  BE  A  REFERENCE  TO SUCH SECTION AS IT EXISTED IMMEDIATELY
 PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97.
   § 2. This act shall take effect immediately and shall apply to taxable
 years commencing on or after January 1, 2018.
 
                                  PART Q
 
   Section 1. Paragraphs (a) and (b) of subdivision 29 of  section  210-B
 of  the  tax law, as amended by section 1 of part I of chapter 60 of the
 laws of 2016, are amended to read as follows:
   (a) Allowance of credit. For taxable years beginning on or after Janu-
 ary first, two thousand fifteen and before January first,  two  thousand
 [nineteen]  TWENTY-ONE,  a  taxpayer  shall  be  allowed a credit, to be
 computed as provided in this subdivision, against  the  tax  imposed  by
 this  article,  for hiring and employing, for not less than one year and
 for not less than thirty-five hours each week, a qualified veteran with-
 in the state.  The taxpayer may claim the credit in the  year  in  which
 the  qualified veteran completes one year of employment by the taxpayer.
 If the taxpayer claims the credit allowed under  this  subdivision,  the
 taxpayer may not use the hiring of a qualified veteran that is the basis
 for  this  credit  in  the  basis of any other credit allowed under this
 article.
   (b) Qualified veteran. A qualified veteran is an individual:
   (1) who served on active duty in the United  States  army,  navy,  air
 force,  marine corps, coast guard or the reserves thereof, or who served
 in active military service of the United States as a member of the  army
 national  guard,  air  national  guard, New York guard or New York naval
 militia; who was released from  active  duty  by  general  or  honorable
 discharge after September eleventh, two thousand one;
   (2)  who  commences  employment  by the qualified taxpayer on or after
 January first, two thousand fourteen,  and  before  January  first,  two
 thousand [eighteen] TWENTY; and
   (3)  who certifies by signed affidavit, under penalty of perjury, that
 he or she has not been employed for thirty-five or more hours during any
 week in the one hundred eighty day period immediately prior  to  his  or
 her employment by the taxpayer.

 S. 7509                            25                            A. 9509
 
   §  2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the tax
 law, as amended by section 2 of part I of chapter  60  of  the  laws  of
 2016, are amended to read as follows:
   (1) Allowance of credit. For taxable years beginning on or after Janu-
 ary  first,  two thousand fifteen and before January first, two thousand
 [nineteen] TWENTY-ONE, a taxpayer shall  be  allowed  a  credit,  to  be
 computed as provided in this subsection, against the tax imposed by this
 article,  for  hiring  and employing, for not less than one year and for
 not less than thirty-five hours each week, a  qualified  veteran  within
 the  state.   The taxpayer may claim the credit in the year in which the
 qualified veteran completes one year of employment by the  taxpayer.  If
 the  taxpayer  claims  the  credit  allowed  under  this subsection, the
 taxpayer may not use the hiring of a qualified veteran that is the basis
 for this credit in the basis of any  other  credit  allowed  under  this
 article.
   (2) Qualified veteran. A qualified veteran is an individual:
   (A)  who  served  on  active duty in the United States army, navy, air
 force, marine corps, coast guard or the reserves thereof, or who  served
 in  active military service of the United States as a member of the army
 national guard, air national guard, New York guard  or  New  York  naval
 militia;  who  was  released  from  active  duty by general or honorable
 discharge after September eleventh, two thousand one;
   (B) who commences employment by the qualified  taxpayer  on  or  after
 January  first,  two  thousand  fourteen,  and before January first, two
 thousand [eighteen] TWENTY; and
   (C) who certifies by signed affidavit, under penalty of perjury,  that
 he or she has not been employed for thirty-five or more hours during any
 week  in  the  one hundred eighty day period immediately prior to his or
 her employment by the taxpayer.
   § 3. Paragraphs 1 and 2 of subdivision (g-1) of section  1511  of  the
 tax  law, as amended by section 3 of part I of chapter 60 of the laws of
 2016, are amended to read as follows:
   (1) Allowance of credit. For taxable years beginning on or after Janu-
 ary first, two thousand fifteen and before January first,  two  thousand
 [nineteen]  TWENTY-ONE,  a  taxpayer  shall  be  allowed a credit, to be
 computed as provided in this subdivision, against  the  tax  imposed  by
 this  article,  for hiring and employing, for not less than one year and
 for not less than thirty-five hours each week, a qualified veteran with-
 in the state.  The taxpayer may claim the credit in the  year  in  which
 the  qualified veteran completes one year of employment by the taxpayer.
 If the taxpayer claims the credit allowed under  this  subdivision,  the
 taxpayer may not use the hiring of a qualified veteran that is the basis
 for  this  credit  in  the  basis of any other credit allowed under this
 article.
   (2) Qualified veteran. A qualified veteran is an individual:
   (A) who served on active duty in the United  States  army,  navy,  air
 force,  marine corps, coast guard or the reserves thereof, or who served
 in active military service of the United States as a member of the  army
 national  guard,  air  national  guard, New York guard or New York naval
 militia; who was released from  active  duty  by  general  or  honorable
 discharge after September eleventh, two thousand one;
   (B)  who  commences  employment  by the qualified taxpayer on or after
 January first, two thousand fourteen,  and  before  January  first,  two
 thousand [eighteen] TWENTY; and
   (C)  who certifies by signed affidavit, under penalty of perjury, that
 he or she has not been employed for thirty-five or more hours during any

 S. 7509                            26                            A. 9509
 
 week in the one hundred eighty day period immediately prior  to  his  or
 her employment by the taxpayer.
   § 4. This act shall take effect immediately.
 
                                  PART R
 
   Section  1.  Subdivision  (c)  of  section  25-a  of the labor law, as
 amended by section 1 of part AA of chapter 56 of the laws  of  2015,  is
 amended to read as follows:
   (c)  A  qualified  employer shall be entitled to a tax credit equal to
 (1) [five] SEVEN hundred FIFTY dollars per month for up  to  six  months
 for  each  qualified employee the employer employs in a full-time job or
 [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six
 months for each qualified employee the employer employs in  a  part-time
 job  of  at  least  twenty hours per week or ten hours per week when the
 qualified employee is enrolled in high school full-time, (2) [one  thou-
 sand]  FIFTEEN  HUNDRED  dollars  for  each  qualified  employee  who is
 employed for at least an additional six CONSECUTIVE months by the quali-
 fied employer in a full-time job or [five] SEVEN hundred  FIFTY  dollars
 for  each  qualified employee who is employed for at least an additional
 six CONSECUTIVE months by the qualified employer in a part-time  job  of
 at  least twenty hours per week or ten hours per week when the qualified
 employee is enrolled in high school full-time,  and  (3)  an  additional
 [one  thousand]  FIFTEEN HUNDRED dollars for each qualified employee who
 is employed for at least an additional year after the [first year of the
 employee's employment] COMPLETION OF THE TIME PERIODS  AND  SATISFACTION
 OF  THE  CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVI-
 SION by the qualified employer  in  a  full-time  job  or  [five]  SEVEN
 hundred FIFTY dollars for each qualified employee who is employed for at
 least an additional year after the [first year of the employee's employ-
 ment]  COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS
 SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVISION by the qualified
 employer in a part-time job of at least twenty hours  per  week  or  ten
 hours  per  week  when the qualified employee is enrolled in high school
 full time. The tax credits shall be claimed by the qualified employer as
 specified in subdivision thirty-six of section  two  hundred  ten-B  and
 subsection (tt) of section six hundred six of the tax law.
   §  2.  Subdivisions (d), (e) and (f) of section 25-a of the labor law,
 subdivisions (d) and (e) as amended by section 1 of subpart A of part  N
 of  chapter  59  of  the  laws of 2017 and subdivision (f) as amended by
 section 1 of part AA of chapter 56 of the laws of 2015, are  amended  to
 read as follows:
   (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
 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,
 after January first, two thousand seventeen but no later  than  November
 thirtieth, two thousand seventeen for program five, after January 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

 S. 7509                            27                            A. 9509
 
 seven, after January first, two thousand twenty but no later than Novem-
 ber thirtieth, two thousand twenty  for  program  eight,  after  January
 first, two thousand twenty-one but no later than November thirtieth, two
 thousand twenty-one for program nine, and after January first, two thou-
 sand twenty-two but no later than November thirtieth, two thousand twen-
 ty-two for program ten. The qualified employees must start their employ-
 ment  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  thou-
 sand  fifteen for program three, on or after January first, two thousand
 sixteen but no later than December thirty-first,  two  thousand  sixteen
 for  program four, on or after January first, two thousand seventeen but
 no later than December thirty-first, two thousand seventeen for  program
 five, on or after January first, two thousand eighteen but no later than
 December  thirty-first,  two  thousand  eighteen  for program six, on or
 after January first, two thousand nineteen but no  later  than  December
 thirty-first, two thousand nineteen for program seven, on or after Janu-
 ary  first, two thousand twenty but no later than December thirty-first,
 two thousand twenty for program eight, on or after  January  first,  two
 thousand  twenty-one  but no later than December thirty-first, two thou-
 sand twenty-one for program nine, and on or  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, ensuring that the process established will minimize any undue
 delay  in  issuing  the certificate of eligibility. Any regulations that
 the commissioner determines are necessary 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 but
 not limited to 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.] AS PART OF SUCH APPLICATION, AN EMPLOYER MUST:
   (1) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
 TAX INFORMATION WITH THE COMMISSIONER. HOWEVER, ANY  INFORMATION  SHARED
 AS  A  RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR
 INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW, AND
   (2) ALLOW THE COMMISSIONER AND ITS AGENTS AND THE DEPARTMENT OF  TAXA-
 TION  AND FINANCE AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND RECORDS
 OF EMPLOYEES THE COMMISSIONER MAY REQUIRE TO MONITOR COMPLIANCE.
   (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 PRELIMINARY certificate of eligibility that establishes
 the employer as a qualified employer.  The  PRELIMINARY  certificate  of
 eligibility  shall  specify  the  maximum  amount of tax credit that the
 employer [will] MAY be allowed to claim and the program year under which
 it [can] MAY be claimed. THE MAXIMUM AMOUNT OF TAX CREDIT  THE  EMPLOYER

 S. 7509                            28                            A. 9509
 
 IS  ALLOWED  TO CLAIM SHALL BE COMPUTED AS PRESCRIBED IN SUBDIVISION (C)
 OF THIS SECTION.
   (f) The commissioner shall annually publish a report. Such report must
 contain  the  names  and  addresses of any employer issued a PRELIMINARY
 certificate of eligibility  under  this  section,  [and]  the  [maximum]
 amount  of  New  York  youth  works  tax credit allowed to the QUALIFIED
 employer as specified on [such] AN ANNUAL FINAL certificate  of  [eligi-
 bility]  TAX  CREDIT  AND  ANY  OTHER  INFORMATION  AS DETERMINED BY THE
 COMMISSIONER.
   § 3. Section 25-a of the labor law is  amended  by  adding  three  new
 subdivisions (e-1), (e-2) and (e-3) to read as follows:
   (E-1)(1)  TO  RECEIVE  AN  ANNUAL FINAL CERTIFICATE OF TAX CREDIT, THE
 QUALIFIED EMPLOYER MUST ANNUALLY SUBMIT, ON OR  BEFORE  JANUARY  THIRTY-
 FIRST OF THE CALENDAR YEAR SUBSEQUENT TO THE PAYMENT OF WAGES PAID TO AN
 ELIGIBLE EMPLOYEE, A REPORT TO THE COMMISSIONER, IN A FORM PRESCRIBED BY
 THE  COMMISSIONER.  THE  REPORT  MUST  DEMONSTRATE THAT THE EMPLOYER HAS
 SATISFIED ALL ELIGIBILITY REQUIREMENTS AND PROVIDED ALL THE  INFORMATION
 NECESSARY  FOR  THE  COMMISSIONER  TO COMPUTE AN ACTUAL AMOUNT OF CREDIT
 ALLOWED.
   (2) AFTER REVIEWING THE REPORT AND FINDING IT SUFFICIENT, THE  COMMIS-
 SIONER  SHALL  ISSUE  AN  ANNUAL  FINAL  CERTIFICATE OF TAX CREDIT. SUCH
 CERTIFICATE SHALL INCLUDE, IN ADDITION  TO  ANY  OTHER  INFORMATION  THE
 COMMISSIONER DETERMINES IS NECESSARY, THE FOLLOWING INFORMATION:
   (I)  THE  NAME  AND  EMPLOYER  IDENTIFICATION  NUMBER OF THE QUALIFIED
 EMPLOYER;
   (II) THE PROGRAM YEAR FOR THE CORRESPONDING CREDIT AWARD;
   (III) THE ACTUAL AMOUNT OF CREDIT TO WHICH THE QUALIFIED  EMPLOYER  IS
 ENTITLED  FOR  THAT CALENDAR YEAR OR THE FISCAL YEAR IN WHICH THE ANNUAL
 FINAL CERTIFICATE IS ISSUED,  WHICH  ACTUAL  AMOUNT  CANNOT  EXCEED  THE
 AMOUNT  OF  CREDIT LISTED ON THE PRELIMINARY CERTIFICATE BUT MAY BE LESS
 THAN SUCH AMOUNT; AND
   (IV) A UNIQUE CERTIFICATE NUMBER IDENTIFYING THE ANNUAL FINAL  CERTIF-
 ICATE OF TAX CREDIT.
   (E-2)  IN  DETERMINING THE AMOUNT OF CREDIT FOR PURPOSES OF THE ANNUAL
 FINAL CERTIFICATE OF TAX CREDIT, THE PORTION OF THE CREDIT DESCRIBED  IN
 PARAGRAPH  ONE  OF  SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR
 THE CALENDAR YEAR IN WHICH THE WAGES ARE PAID TO THE QUALIFIED EMPLOYEE,
 THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION  (C)
 OF  THIS  SECTION  SHALL  BE  ALLOWED FOR THE CALENDAR YEAR IN WHICH THE
 ADDITIONAL SIX CONSECUTIVE MONTH PERIOD ENDS, AND  THE  PORTION  OF  THE
 CREDIT  DESCRIBED  IN PARAGRAPH THREE OF SUBDIVISION (C) OF THIS SECTION
 SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE ADDITIONAL  YEAR  OF
 CONSECUTIVE EMPLOYMENT ENDS AFTER THE COMPLETION OF THE TIME PERIODS AND
 SATISFACTION  OF  THE  CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF
 SUBDIVISION (C) OF THIS SECTION.   IF THE QUALIFIED  EMPLOYER'S  TAXABLE
 YEAR  IS  A  CALENDAR  YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE
 CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF  TAX  CREDIT  ON
 THE  CALENDAR  YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX
 CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A  FISCAL
 YEAR,  THE  EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED
 ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT  ON  THE  RETURN  FOR  THE
 FISCAL  YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIF-
 ICATE OF TAX CREDIT IS ISSUED.
   (E-3) THE COMMISSIONER SHALL ESTABLISH GUIDELINES  AND  CRITERIA  THAT
 SPECIFY REQUIREMENTS FOR EMPLOYERS TO PARTICIPATE IN THE PROGRAM INCLUD-
 ING CRITERIA FOR CERTIFYING QUALIFIED EMPLOYEES, AND ISSUING THE PRELIM-

 S. 7509                            29                            A. 9509
 
 INARY  CERTIFICATE  OF  ELIGIBILITY  AND ANNUAL FINAL CERTIFICATE OF TAX
 CREDIT.  ANY REGULATIONS THAT THE COMMISSIONER DETERMINES ARE  NECESSARY
 MAY  BE  ADOPTED  ON  AN EMERGENCY BASIS NOTWITHSTANDING ANYTHING TO THE
 CONTRARY  IN  SECTION TWO HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCE-
 DURE 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 BUT NOT LIMITED TO  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.
   § 4. Paragraph (a) 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:
   (a) A taxpayer that has been certified by the commissioner of labor as
 a  qualified employer pursuant to section twenty-five-a of the labor law
 shall be allowed a credit against the tax imposed by this article  equal
 to (i) [five] SEVEN hundred FIFTY dollars per month for up to six months
 for  each  qualified employee the employer employs in a full-time job or
 [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six
 months for each qualified employee the employer employs in  a  part-time
 job  of  at  least  twenty hours per week or ten hours per week when the
 qualified employee is enrolled in high school full-time, (ii) [one thou-
 sand] FIFTEEN  HUNDRED  dollars  for  each  qualified  employee  who  is
 employed for at least an additional six CONSECUTIVE months by the quali-
 fied  employer  in a full-time job or [five] SEVEN hundred FIFTY dollars
 for each qualified employee who is employed for at least  an  additional
 six  CONSECUTIVE  months by the qualified employer in a part-time job of
 at least twenty hours per week or ten hours per week when the  qualified
 employee  is  enrolled in high school full-time, and (iii) an additional
 [one thousand] FIFTEEN HUNDRED dollars for each qualified  employee  who
 is employed for at least an additional year after the [first year of the
 employee's  employment]  COMPLETION OF THE TIME PERIODS AND SATISFACTION
 OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS  PARA-
 GRAPH  by  the  qualified  employer  in  a full-time job or [five] SEVEN
 hundred FIFTY dollars for each qualified employee who is employed for at
 least an additional year after the [first year of the employee's employ-
 ment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE  CONDITIONS
 SET  FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH by the quali-
 fied employer in a part-time job of at least twenty hours  per  week  or
 ten  hours  per  week  when  the  qualified employee is enrolled in high
 school full-time. For purposes of this subdivision, the term  "qualified
 employee" shall have the same meaning as set forth in subdivision (b) of
 section  twenty-five-a  of  the  labor  law.  The  portion of the credit
 described in subparagraph (i) of this paragraph shall be allowed for the
 taxable year in which the wages are paid to the qualified employee,  the
 portion  of  the credit described in subparagraph (ii) of this paragraph
 shall be allowed in the taxable year in which the additional  six  month
 period  ends,  and  the  portion of the credit described in subparagraph
 (iii) of this paragraph shall be allowed in the taxable  year  in  which
 the additional year after the first year of employment ends.
   §  5. Paragraph (a) of subdivision 36 of section 210-B of the tax law,
 as amended by section 4 of this act, is amended to read as follows:
   (a) A taxpayer that has been certified by the commissioner of labor as
 a qualified employer pursuant to section twenty-five-a of the labor  law

 S. 7509                            30                            A. 9509
 
 AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS-
 SIONER shall be allowed a credit against the tax imposed by this article
 equal to [(i) seven hundred fifty dollars per month for up to six months
 for  each  qualified employee the employer employs in a full-time job or
 three hundred seventy-five dollars per month for up to  six  months  for
 each  qualified  employee  the employer employs in a part-time job of at
 least twenty hours per week or ten hours per  week  when  the  qualified
 employee  is  enrolled  in  high  school full-time, (ii) fifteen hundred
 dollars for each qualified employee who is  employed  for  at  least  an
 additional  six  consecutive months by the qualified employer in a full-
 time job or seven hundred fifty dollars for each qualified employee  who
 is  employed  for  at  least an additional six consecutive months by the
 qualified employer in a part-time job of at least twenty hours per  week
 or  ten  hours  per week when the qualified employee is enrolled in high
 school full-time, and (iii) an additional fifteen  hundred  dollars  for
 each  qualified employee who is employed for at least an additional year
 after the completion of the time periods and satisfaction of the  condi-
 tions  set  forth in subparagraphs (i) and (ii) of this paragraph by the
 qualified employer in a full-time job or seven hundred fifty dollars for
 each qualified employee who is employed for at least an additional  year
 after  the completion of the time periods and satisfaction of the condi-
 tions set forth in subparagraphs (i) and (ii) of this paragraph  by  the
 qualified  employer in a part-time job of at least twenty hours per week
 or ten hours per week when the qualified employee is  enrolled  in  high
 school  full-time. For purposes of this subdivision, the term "qualified
 employee" shall have the same meaning as set forth in subdivision (b) of
 section twenty-five-a of the  labor  law.  The  portion  of  the  credit
 described in subparagraph (i) of this paragraph shall be allowed for the
 taxable  year in which the wages are paid to the qualified employee, the
 portion of the credit described in subparagraph (ii) of  this  paragraph
 shall  be  allowed in the taxable year in which the additional six month
 period ends, and the portion of the  credit  described  in  subparagraph
 (iii)  of  this  paragraph shall be allowed in the taxable year in which
 the additional year after the first year of employment ends] THE  AMOUNT
 LISTED  ON  THE  ANNUAL  FINAL  CERTIFICATE  OF TAX CREDIT ISSUED BY THE
 COMMISSIONER OF LABOR PURSUANT TO SECTION  TWENTY-FIVE-A  OF  THE  LABOR
 LAW.    IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE
 EMPLOYER SHALL BE ENTITLED TO CLAIM THE  CREDIT  AS  CALCULATED  ON  THE
 ANNUAL  FINAL  CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR
 WHICH THE ANNUAL FINAL CERTIFICATE OF TAX  CREDIT  WAS  ISSUED.  IF  THE
 QUALIFIED  EMPLOYER'S  TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL
 BE ENTITLED TO CLAIM THE  CREDIT  AS  CALCULATED  ON  THE  ANNUAL  FINAL
 CERTIFICATE  OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOM-
 PASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX  CREDIT  IS
 ISSUED.  FOR  THE  PURPOSES  OF  THIS  SUBDIVISION,  THE TERM "QUALIFIED
 EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF
 SECTION TWENTY-FIVE-A OF THE LABOR LAW.
   § 6. Paragraph (c) of subdivision 36 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:
   (c) The taxpayer [may] SHALL be required to attach to its  tax  return
 its  ANNUAL  FINAL certificate of [eligibility] TAX CREDIT issued by the
 commissioner of labor pursuant to section  twenty-five-a  of  the  labor
 law. In no event shall the taxpayer be allowed a credit greater than the
 amount  of  the credit listed on the ANNUAL FINAL certificate of [eligi-
 bility] TAX CREDIT.  Notwithstanding any provision of  this  chapter  to

 S. 7509                            31                            A. 9509
 
 the  contrary,  the  commissioner  and  the commissioner's designees may
 release the names and addresses of any taxpayer claiming this credit and
 the amount of the credit earned by the taxpayer.  Provided, however,  if
 a  taxpayer  claims  this  credit  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.
   § 7. Paragraph 1 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:
   (1) A taxpayer that has been certified by the commissioner of labor as
 a qualified employer pursuant to section twenty-five-a of the labor  law
 shall  be allowed a credit against the tax imposed by this article equal
 to (A) [five] SEVEN hundred FIFTY dollars per month for up to six months
 for each qualified employee the employer employs in a full-time  job  or
 [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six
 months  for  each qualified employee the employer employs in a part-time
 job of at least twenty hours per week or ten hours  per  week  when  the
 qualified  employee  is  enrolled in high school full-time, and (B) [one
 thousand] FIFTEEN HUNDRED dollars for each  qualified  employee  who  is
 employed for at least an additional six CONSECUTIVE months by the quali-
 fied  employer  in a full-time job or [five] SEVEN hundred FIFTY dollars
 for each qualified employee who is employed for at least  an  additional
 six  CONSECUTIVE  months by the qualified employer in a part-time job of
 at least twenty hours per week or ten hours per week when the  qualified
 employee  is  enrolled  in  high school full-time, and (C) an additional
 [one thousand] FIFTEEN HUNDRED dollars for each qualified  employee  who
 is employed for at least an additional year after the [first year of the
 employee's  employment]  COMPLETION OF THE TIME PERIODS AND SATISFACTION
 OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS  SUBSECTION
 by  the  qualified  employer  in a full-time job or [five] SEVEN hundred
 FIFTY dollars for each qualified employee who is employed for  at  least
 an  additional  year after the [first year of the employee's employment]
 COMPLETION OF THE TIME PERIODS AND SATISFACTION OF  THE  CONDITIONS  SET
 FORTH  IN  SUBPARAGRAPHS  A  AND  B  OF THIS SUBSECTION by the qualified
 employer in a part-time job of at least twenty hours  per  week  or  ten
 hours  per  week  when the qualified employee is enrolled in high school
 full-time. A taxpayer that is a partner in a partnership,  member  of  a
 limited  liability  company  or shareholder in an S corporation that has
 been certified by the commissioner of  labor  as  a  qualified  employer
 pursuant  to section twenty-five-a of the labor law shall be allowed its
 pro rata share of the credit earned by the partnership, limited  liabil-
 ity  company or S corporation. For purposes of this subsection, the term
 "qualified employee" shall have the same meaning as set forth in  subdi-
 vision (b) of section twenty-five-a of the labor law. The portion of the
 credit  described in subparagraph (A) of this paragraph shall be allowed
 for the taxable year in which  the  wages  are  paid  to  the  qualified
 employee,  the  portion  of  the credit described in subparagraph (B) of
 this paragraph shall be allowed in the taxable year in which  the  addi-
 tional six month period ends, and the portion of the credit described in
 subparagraph  (C) of this paragraph shall be allowed in the taxable year
 in which the additional year after the first year of employment ends.
   § 8. Paragraph 1 of subsection (tt) of section 606 of the tax law,  as
 amended by section 7 of this act, is amended to read as follows:
   (1) A taxpayer that has been certified by the commissioner of labor as
 a  qualified employer pursuant to section twenty-five-a of the labor law

 S. 7509                            32                            A. 9509
 
 AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS-
 SIONER shall be allowed a credit against the tax imposed by this article
 equal to [(A) seven hundred fifty dollars per month for up to six months
 for  each  qualified employee the employer employs in a full-time job or
 three hundred seventy-five dollars per month for up to  six  months  for
 each  qualified  employee  the employer employs in a part-time job of at
 least twenty hours per week or ten hours per  week  when  the  qualified
 employee  is  enrolled in high school full-time, and (B) fifteen hundred
 dollars for each qualified employee who is  employed  for  at  least  an
 additional  six  consecutive months by the qualified employer in a full-
 time job or seven hundred fifty dollars for each qualified employee  who
 is  employed  for  at  least an additional six consecutive months by the
 qualified employer in a part-time job of at least twenty hours per  week
 or  ten  hours  per week when the qualified employee is enrolled in high
 school full-time, and (C) an additional fifteen hundred dollars for each
 qualified employee who is employed for at least an additional year after
 the completion of the time periods and satisfaction  of  the  conditions
 set  forth  in subparagraphs A and B of this subsection by the qualified
 employer in a full-time job or seven  hundred  fifty  dollars  for  each
 qualified employee who is employed for at least an additional year after
 the  completion  of  the time periods and satisfaction of the conditions
 set forth in subparagraphs A and B of this subsection by  the  qualified
 employer  in  a  part-time  job of at least twenty hours per week or ten
 hours per week when the qualified employee is enrolled  in  high  school
 full-time]  THE  AMOUNT  LISTED  ON  THE ANNUAL FINAL CERTIFICATE OF TAX
 CREDIT ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO  SECTION  TWENTY-
 FIVE-A  OF THE LABOR LAW. A taxpayer that is a partner in a partnership,
 member of a limited liability company or shareholder in an S corporation
 that has [been certified by] RECEIVED ITS ANNUAL  FINAL  CERTIFICATE  OF
 TAX CREDIT FROM the commissioner of labor as a qualified employer pursu-
 ant  to  section twenty-five-a of the labor law shall be allowed its pro
 rata share of the credit earned by the  partnership,  limited  liability
 company  or  S  corporation.  [For purposes of this subsection, the term
 "qualified employee" shall have the same meaning as set forth in  subdi-
 vision (b) of section twenty-five-a of the labor law. The portion of the
 credit  described in subparagraph (A) of this paragraph shall be allowed
 for the taxable year in which  the  wages  are  paid  to  the  qualified
 employee,  the  portion  of  the credit described in subparagraph (B) of
 this paragraph shall be allowed in the taxable year in which  the  addi-
 tional six month period ends, and the portion of the credit described in
 subparagraph  (C) of this paragraph shall be allowed in the taxable year
 in which the additional year after the first year of  employment  ends.]
 IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOY-
 ER  SHALL  BE  ENTITLED  TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL
 FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR  RETURN  FOR  WHICH
 THE  ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED
 EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED
 TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX
 CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES  THE  DATE  ON
 WHICH  THE  ANNUAL  FINAL  CERTIFICATE OF TAX CREDIT IS ISSUED.  FOR THE
 PURPOSES OF THIS SUBSECTION, THE TERM "QUALIFIED  EMPLOYEE"  SHALL  HAVE
 THE   SAME   MEANING   AS  SET  FORTH  IN  SUBDIVISION  (B)  OF  SECTION
 TWENTY-FIVE-A OF THE LABOR LAW.
   § 9. Paragraph 3 of subsection (tt) of section 606 of the tax law,  as
 added  by  section  3  of  part  D of chapter 56 of the laws of 2011, is
 amended to read as follows:

 S. 7509                            33                            A. 9509
 
   (3) The taxpayer [may] SHALL be required to attach to its  tax  return
 its  ANNUAL  FINAL certificate of [eligibility] TAX CREDIT issued by the
 commissioner of labor pursuant to section  twenty-five-a  of  the  labor
 law. In no event shall the taxpayer be allowed a credit greater than the
 amount  of  the credit listed on the ANNUAL FINAL certificate of [eligi-
 bility] TAX CREDIT. Notwithstanding any provision of this chapter to the
 contrary, the commissioner and the commissioner's designees may  release
 the  names  and  addresses  of any taxpayer claiming this credit and the
 amount of the credit earned by the taxpayer.   Provided, however,  if  a
 taxpayer  claims this credit because it is a member of a limited liabil-
 ity company, a partner in a partnership, or a shareholder in a  subchap-
 ter  S  corporation,  only the amount of credit earned by the entity and
 not the amount of credit claimed by the taxpayer may be released.
   § 10. This act shall take effect immediately,  provided  however  that
 (i)  section  one  of  this act shall apply to tax years beginning on or
 after January 1, 2018; (ii) sections four and seven of  this  act  shall
 apply  to  tax  years  beginning  on or after January 1, 2018 and before
 January 1, 2019; and (iii) sections two, three, five,  six,  eight,  and
 nine  of  this  act shall take effect January 1, 2019 and shall apply to
 tax years beginning on or after January 1, 2019.
 
                                  PART S
 
   Section 1. Section 33 of the tax law, as added by section 1 of part  Y
 of chapter 57 of the laws of 2010, is amended to read as follows:
   §  33.  Temporary  deferral of certain tax credits. 1. (a) For taxable
 years beginning on or after January first, two thousand  [ten]  EIGHTEEN
 and before January first, two thousand [thirteen] TWENTY-ONE, the excess
 over  two  million dollars of the total amount of the tax credits speci-
 fied in subdivision three of this section that in each of those  taxable
 years  would otherwise be used to reduce the taxpayer's tax liability to
 the amount otherwise specified in this chapter or be refunded or credit-
 ed as an overpayment will be deferred to and used or refunded in taxable
 years beginning on or after January first, two thousand [thirteen] TWEN-
 TY-ONE in accordance with the provisions of section thirty-four of  this
 article. Interest shall not be paid on the amounts of credit deferred.
   (b) To determine the amount of each tax credit allowed for the taxable
 year  to  be  used,  refunded or credited as an overpayment the taxpayer
 shall multiply the amount of each credit subject to deferral that  would
 have been used, refunded or credited as an overpayment in the absence of
 this  section  by  a  fraction,  the  numerator  of which is two million
 dollars, and the denominator of which is the total amount of the taxpay-
 er's credits subject to deferral pursuant to subdivision three  of  this
 section  that  would have been used, refunded or credited as an overpay-
 ment for the taxable year in the absence of this section. The product is
 the amount of such credit that is  not  subject  to  deferral  and  thus
 allowed to be used, refunded or credited as an overpayment for the taxa-
 ble year.
   2.  Taxpayers  shall  calculate  and  make  any estimated tax payments
 required to be made by taking  into  account  the  deferral  of  credits
 required  by this section. Taxpayers shall calculate any mandatory first
 installment payments made on or after the effective date of this section
 as if the deferral of credits required  by  this  section  had  been  in
 effect  for  the  taxable  year upon which that installment is based. In
 addition, for taxable years beginning on or  after  January  first,  two
 thousand  [ten] EIGHTEEN and before January first, two thousand [eleven]

 S. 7509                            34                            A. 9509
 
 NINETEEN, (a) no addition to tax under subsection  (c)  of  section  six
 hundred  eighty-five  of  this  chapter or subsection (c) of section one
 thousand eighty-five of this chapter shall be imposed  with  respect  to
 any  underpayment  attributable to the deferral required by this section
 of any estimated taxes that are required to be paid prior to the  enact-
 ment  of  this  section,  provided  that  the taxpayer timely made those
 payments; and (b) the required installment of estimated tax described in
 clause (ii) of subparagraph (B) of paragraph three of subsection (c)  of
 section  six  hundred  eighty-five of this chapter, and the exception to
 addition for underpayment of estimated tax described in paragraph one or
 two of subsection (d) of section one thousand eighty-five of this  chap-
 ter,  in relation to the preceding year's return, shall be calculated as
 if the deferral required by this section had been  in  effect  for  that
 entire preceding year.
   3.  (a)  This  section  shall  apply  to the credits allowed under the
 following provisions in article nine-a of this chapter and any  applica-
 ble  counterpart  provisions  in articles nine, twenty-two, [thirty-two]
 and thirty-three of this chapter:
   Section [210(12)] 210-B(1) investment tax credit
   Section [210(12-B)] 210-B(3) empire zone investment tax credit
   Section [210(12-C)] 210-B(4) empire zone employment incentive credit
   Section [210(12-D)] 210-B(2) employment incentive credit
   Section [210(12-E)] 210-B(7) QETC employment credit
   Section [210(12-F)] 210-B(8) QETC capital tax credit
   [Section 210(12-G) QETC facilities, operations, and training credit]
   Section [210(17)] 210-B(9) special additional mortgage  recording  tax
 credit
   [Section 210(19) empire zone wage tax credit
   Section 210(20) empire zone capital tax credit]
   Section [210(21-a)] 210-B(10) credit for servicing certain mortgages
   Section  [210(23)]  210-B(12)  credit  for  employment of persons with
 disabilities
   Section [210(24)] 210-B(30) alternative  fuels  AND  ELECTRIC  VEHICLE
 RECHARGING PROPERTY credit
   Section  [210(25)]  210-B(13)  credit  for  purchase  of  an automated
 external defibrillator
   Section [210(27)] 210-B(5) QEZE credit for real property taxes
   Section [210(28)] 210-B(6) QEZE tax reduction credit
   Section [210(30)] 210-B(15) low income housing credit
   Section [210(31)] 210-B(16) green building credit
   Section [210(33)] 210-B(17) brownfield redevelopment tax credit
   Section [210(34)] 210-B(18)  remediated  brownfield  credit  for  real
 property taxes for qualified sites
   Section [210(35)] 210-B(19) environmental remediation insurance credit
   Section [210(37)] 210-B(21) security training tax credit
   [Section  210(37)  credit  for fuel cell electric generating equipment
 expenditures]
   Section [210(38)] 210-B(22) conservation easement tax credit
   [Section 210(38) empire state commercial production credit]
   Section [210(38)] 210-B(24) biofuel production credit
   Section [210(39)] 210-B(25) clean heating fuel credit
   Section [210(40)] 210-B(26)  credit  for  rehabilitation  of  historic
 properties
   Section [210(40)] 210-B(38) credit for companies who provide transpor-
 tation to individuals with disabilities
   SECTION 210-B(11) AGRICULTURAL PROPERTY TAX CREDIT

 S. 7509                            35                            A. 9509
 
   SECTION  210-B(35)  ECONOMIC TRANSFORMATION AND FACILITY REDEVELOPMENT
 CREDIT
   SECTION 210-B(39) ALCOHOLIC BEVERAGE PRODUCTION CREDIT
   SECTION 210-B(40) MINIMUM WAGE REIMBURSEMENT CREDIT
   SECTION 210-B(41) THE TAX-FREE NY AREA TAX ELIMINATION CREDIT
   SECTION 210-B(43) REAL PROPERTY TAX CREDIT FOR MANUFACTURERS
   SECTION 210-B(44) THE TAX-FREE NY AREA EXCISE TAX ON TELECOMMUNICATION
 SERVICES CREDIT
   SECTION 210-B(47) MUSICAL AND THEATRICAL PRODUCTION CREDIT
   SECTION 210-B(48) WORKERS WITH DISABILITIES TAX CREDIT
   SECTION 210-B(51) FARM WORKFORCE RETENTION CREDIT
   (b)  This  section  shall  also  apply  to  the credits allowed by the
 following sections:
   [Section 186-a(9) power for jobs credit]
   Section 606(g-1) solar energy system equipment credit
   Section 606(pp) historic homeownership rehabilitation credit
   Section 1511(k) credit for certain investments  in  certified  capital
 companies
   §  2.  Subdivisions  1 and 2 of section 34 of the tax law, as added by
 section 2 of part Y of chapter 57 of the laws of 2010,  are  amended  to
 read as follows:
   1.  The amounts of nonrefundable credits that are deferred pursuant to
 section thirty-three of this article in taxable years  beginning  on  or
 after  January  first,  two  thousand  [ten] EIGHTEEN and before January
 first, two thousand  [thirteen]  TWENTY-ONE  shall  be  accumulated  and
 constitute  the taxpayer's temporary deferral nonrefundable payout cred-
 it. The taxpayer may first claim this credit in the taxable year  begin-
 ning  on  or after January first, two thousand [thirteen] TWENTY-ONE and
 before January first, two thousand [fourteen] TWENTY-TWO.  The  taxpayer
 shall  be allowed to claim this credit until the accumulated amounts are
 exhausted. The credit shall be allowed against  the  taxpayer's  tax  as
 provided  in  the  provisions referenced in paragraph (a) of subdivision
 three of this section.
   2. The amounts of refundable credits that  are  deferred  pursuant  to
 section  thirty-three  of  this article in taxable years beginning on or
 after January first, two thousand  [ten]  EIGHTEEN  and  before  January
 first,  two  thousand  [thirteen]  TWENTY-ONE  shall  be accumulated and
 constitute the taxpayer's temporary deferral refundable  payout  credit.
 In  the  taxable  year beginning on or after January first, two thousand
 [thirteen] TWENTY-ONE and before January first, two thousand  [fourteen]
 TWENTY-TWO,  the  taxpayer  shall  be allowed to claim a credit equal to
 fifty percent of the amount accumulated. In the taxable  year  beginning
 on or after January first, two thousand [fourteen] TWENTY-TWO and before
 January  first,  two thousand [fifteen] TWENTY-THREE, the taxpayer shall
 be allowed to claim a  credit  equal  to  seventy-five  percent  of  the
 balance  of  the amount accumulated. In the taxable year beginning on or
 after January first, two  thousand  [fifteen]  TWENTY-THREE  and  before
 January first, two thousand [sixteen] TWENTY-FOUR, the taxpayer shall be
 allowed  to  claim a credit equal to the remaining balance of the amount
 accumulated. The credit shall be allowed against the taxpayer's  tax  as
 provided  in  the  provisions referenced in paragraph (b) of subdivision
 three of this section.
   § 3. This act shall take effect immediately.
 
                                  PART T

 S. 7509                            36                            A. 9509
 
   Section 1. Subdivision (a) of section 1412 of the tax law, as added by
 chapter 61 of the laws of 1989, is amended to read as follows:
   (a)  A  grantor  or  grantee claiming to have erroneously paid the tax
 imposed by this article or some other person designated by such  grantor
 or  grantee  may file an application for refund within [two] THREE years
 from the date of payment. Such  application  shall  be  filed  with  the
 commissioner  [of  taxation  and  finance]  on  a  form  which  he shall
 prescribe.
   § 2. Subdivision (b) of section 1402-a of the tax  law,  as  added  by
 chapter 61 of the laws of 1989, is amended to read as follows:
   (b) Notwithstanding the provisions of subdivision (a) of section four-
 teen  hundred  four  of this article, the additional tax imposed by this
 section shall be paid by the grantee. If the  grantee  [is  exempt  from
 such  tax, the grantor shall have the duty to pay the tax] HAS FAILED TO
 PAY THE TAX IMPOSED BY THIS ARTICLE AT  THE  TIME  REQUIRED  BY  SECTION
 FOURTEEN  HUNDRED  TEN  OF THIS ARTICLE OR IF THE GRANTEE IS EXEMPT FROM
 SUCH TAX, THE GRANTOR SHALL HAVE THE DUTY TO  PAY  THE  TAX.  WHERE  THE
 GRANTOR  HAS  THE  DUTY TO PAY THE TAX BECAUSE THE GRANTEE HAS FAILED TO
 PAY, SUCH TAX SHALL BE THE JOINT AND SEVERAL LIABILITY  OF  THE  GRANTOR
 AND THE GRANTEE.
   §  3.  This act shall take effect immediately; provided, however, that
 section two of this act shall apply to conveyances occurring on or after
 the fifteenth day after this act shall have become a law.
 
                                  PART U
 
   Section 1. Subdivision 6 of section 470 of the tax law,  as  added  by
 chapter 61 of the laws of 1989, is amended to read as follows:
   6.  "Wholesale  price."  The  [established]  INVOICE price for which a
 manufacturer OR OTHER PERSON sells tobacco products  to  a  distributor,
 INCLUDING  THE  FEDERAL  EXCISE  TAXES PAID BY THE MANUFACTURER OR OTHER
 PERSON, before the allowance of any discount, trade allowance, rebate or
 other reduction.
   [In the absence of such an established price, a manufacturer's invoice
 price of any tobacco product shall be presumptive evidence of the whole-
 sale price of such tobacco product, and in  its  absence  the  price  at
 which  such  tobacco products were purchased shall be presumed to be the
 wholesale price, unless evidence of a lower  wholesale  price  shall  be
 established or any industry standard of markups relating to the purchase
 price in relation to the wholesale price shall be established.]
   §  2.  This act shall take effect on September 1, 2018 and shall apply
 to all tobacco products possessed in this state for  sale  on  or  after
 such date.
 
                                  PART V
 
   Section  1.  Subparagraph  (A)  of  paragraph  1 of subdivision (b) of
 section 1105 of the tax law, as amended by section 9 of part S of  chap-
 ter 85 of the laws of 2002, is amended to read as follows:
   (A)  gas,  electricity,  refrigeration  and  steam, and gas, electric,
 refrigeration and steam service of whatever nature, INCLUDING THE TRANS-
 PORTATION, TRANSMISSION OR DISTRIBUTION OF GAS OR ELECTRICITY,  EVEN  IF
 SOLD SEPARATELY;
   § 2. Section 1105-C of the tax law is REPEALED.

 S. 7509                            37                            A. 9509

   §  3.  Subparagraph  (xi) of paragraph 4 of subdivision (a) of section
 1210 of the tax law, as amended by section 2 of part WW of chapter 60 of
 the laws of 2016, is amended to read as follows:
   (xi) [shall provide that section eleven hundred five-C of this chapter
 does  not  apply to such taxes, and] shall tax receipts from every sale,
 other than sales for resale, of gas service or electric service of what-
 ever nature, including the transportation, transmission or  distribution
 of gas or electricity, even if sold separately, at the rate set forth in
 clause one of subparagraph (i) of the opening paragraph of this section;
   § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis-
 trative  code  of the city of New York, as amended by chapter 200 of the
 laws of 2009, is amended to read as follows:
   (8) [makes inapplicable section eleven hundred five-C of the tax  law,
 and]  imposes  tax  on  receipts  from  every sale, other than sales for
 resale, of gas service or electric service of whatever nature, including
 the transportation, transmission or distribution of gas or  electricity,
 even  if  sold  separately,  at the rate set forth in subdivision (a) of
 this section.
   § 5. This act shall take effect  immediately;  provided  however  that
 this  act  shall  apply to sales made and services rendered on and after
 June 1, 2018 whether or not such sales and services are rendered under a
 prior contract.
 
                                  PART W
 
   Section 1. Subdivision (f) of section 1115 of the tax law, as  amended
 by chapter 205 of the laws of 1968, is amended to read as follows:
   (f) (1) Services rendered by a veterinarian licensed and registered as
 required  by  the education law which constitute the practice of veteri-
 nary medicine as defined in  said  law,  including  hospitalization  for
 which  no  separate boarding charge is made, shall not be subject to tax
 under paragraph (3) of subdivision (c) of section eleven  hundred  five,
 but  the  exemption allowed by this subdivision shall not apply to other
 services provided by a veterinarian to pets and other  animals,  includ-
 ing,  but  not  limited to, boarding, grooming and clipping. Articles of
 tangible personal property designed for use in some manner  relating  to
 domestic animals or poultry, when sold by such a veterinarian, shall not
 be  subject  to tax under subdivision (a) of section eleven hundred five
 or under section eleven hundred ten. However, the sale of any such arti-
 cles of tangible personal property to a veterinarian shall not be deemed
 a sale for resale within the meaning  of  [pargraph]  PARAGRAPH  (4)  of
 subdivision  (b)  of  section eleven hundred one and shall not be exempt
 from retail sales tax.
   (2) DRUGS OR MEDICINE SOLD TO OR USED BY A  VETERINARIAN  FOR  USE  IN
 RENDERING  SERVICES  THAT  ARE  EXEMPT PURSUANT TO PARAGRAPH ONE OF THIS
 SUBDIVISION TO LIVESTOCK OR POULTRY USED IN THE PRODUCTION FOR  SALE  OF
 TANGIBLE  PERSONAL  PROPERTY  BY FARMING, OR SOLD TO A PERSON QUALIFYING
 FOR THE EXEMPTION PROVIDED FOR IN PARAGRAPH SIX OF  SUBDIVISION  (A)  OF
 THIS SECTION FOR USE BY SUCH PERSON ON SUCH LIVESTOCK OR POULTRY.
   §  2.  Subdivision  (a)  of section 1119 of the tax law, as amended by
 chapter 686 of the laws of 1986 and as further amended by section 15  of
 part  GG  of  chapter  63  of  the  laws  of 2000, is amended to read as
 follows:
   (a) Subject to the conditions and limitations provided for  herein,  a
 refund or credit shall be allowed for a tax paid pursuant to subdivision
 (a)  of section eleven hundred five or section eleven hundred ten (1) on

 S. 7509                            38                            A. 9509
 
 the sale or use of tangible personal property if the purchaser or  user,
 in  the  performance  of  a  contract,  later incorporates that tangible
 personal property into real property located outside this state, (2)  on
 the  sale or use of tangible personal property purchased in bulk, or any
 portion thereof, which is stored and not used by the purchaser  or  user
 within  this  state  if  that property is subsequently reshipped by such
 purchaser or user to a point outside this state  for  use  outside  this
 state,  (3)  on  the  sale to or use by a contractor or subcontractor of
 tangible personal property if that property is used by him solely in the
 performance of a  pre-existing  lump  sum  or  unit  price  construction
 contract,  (4) on the sale or use within this state of tangible personal
 property, not purchased for resale, if the use of such property in  this
 state  is restricted to fabricating such property (including incorporat-
 ing it into or assembling it with  other  tangible  personal  property),
 processing,  printing  or  imprinting such property and such property is
 then shipped to a point outside this state for use outside  this  state,
 [(5)  on  the  sale  to or use by a veterinarian of drugs or medicine if
 such drugs or medicine  are  used  by  such  veterinarian  in  rendering
 services, which are exempt pursuant to subdivision (f) of section eleven
 hundred  fifteen  of  this  chapter, to livestock or poultry used in the
 production for sale of tangible personal property by farming or if  such
 drugs  or  medicine  are  sold  to a person qualifying for the exemption
 provided for in paragraph (6)  of  subdivision  (a)  of  section  eleven
 hundred fifteen of this chapter for use by such person on such livestock
 or  poultry,] or (6) on the sale of tangible personal property purchased
 for use in  constructing,  expanding  or  rehabilitating  industrial  or
 commercial  real property (other than property used or to be used exclu-
 sively by one or more registered vendors primarily engaged in the retail
 sale of tangible personal property) located in an area designated as  an
 empire zone pursuant to article eighteen-B of the general municipal law,
 but  only to the extent that such property becomes an integral component
 part of the real property. (For the purpose of clause (3) of the preced-
 ing sentence, the term "pre-existing lump sum or unit price construction
 contract" shall mean a contract for the construction of improvements  to
 real  property  under  which  the  amount  payable  to the contractor or
 subcontractor is fixed without regard to the costs incurred  by  him  in
 the  performance  thereof,  and  which  (i) was irrevocably entered into
 prior to the date of the enactment of this article or the enactment of a
 law increasing the rate of tax  imposed  under  this  article,  or  (ii)
 resulted  from the acceptance by a governmental agency of a bid accompa-
 nied by a bond or  other  performance  guaranty  which  was  irrevocably
 submitted  prior to such date.) Where the tax on the sale or use of such
 tangible personal property has been paid to the vendor, to  qualify  for
 such  refund or credit, such tangible personal property must be incorpo-
 rated into real property as required in clause (1) above,  reshipped  as
 required  in  clause  (2) above, used in the manner described in clauses
 (3), (4)[, (5)] and (6) above within three years after the date such tax
 was payable to the tax commission by  the  vendor  pursuant  to  section
 eleven  hundred  thirty-seven.  Where the tax on the sale or use of such
 tangible personal property was paid by the applicant for the  credit  or
 refund  directly  to  the  tax commission, to qualify for such refund or
 credit, such tangible personal property must be incorporated  into  real
 property  as  required  in  clause  (1)  above, reshipped as required in
 clause (2) above, used in the manner described  in  clauses  (3),  (4)[,
 (5)]  and (6) above within three years after the date such tax was paya-
 ble to the tax commission by such applicant pursuant to this article. An

 S. 7509                            39                            A. 9509
 
 application for a refund or credit pursuant  to  this  section  must  be
 filed  with  such commission within the time provided by subdivision (a)
 of section eleven hundred thirty-nine. Such application shall be in such
 form as the tax commission may prescribe. Where an application for cred-
 it has been filed, the applicant may immediately take such credit on the
 return  which  is  due  coincident with or immediately subsequent to the
 time that he files his application for credit. However,  the  taking  of
 the  credit  on the return shall be deemed to be part of the application
 for credit and shall be subject to the provisions in respect to applica-
 tions for credit in section eleven hundred thirty-nine  as  provided  in
 subdivision (e) of such section. With respect to a sale or use described
 in  clause  (3)  above  where  a  pre-existing  lump  sum  or unit price
 construction contract was irrevocably entered into prior to the date  of
 the  enactment of this article or the bid accompanied by the performance
 guaranty was irrevocably submitted to the governmental agency  prior  to
 such date, the purchaser or user shall be entitled to a refund or credit
 only  of  the  amount by which the tax on such sale or use imposed under
 this article plus any tax imposed under the authority of  article  twen-
 ty-nine exceeds the amount computed by applying against such sale or use
 the  local  rate of tax, if any, in effect at the time such contract was
 entered into or such bid was submitted.
   In the case of the enactment of a  law  increasing  the  rate  of  tax
 imposed by this article, the purchaser or user shall be entitled only to
 a refund or credit of the amount by which the increased tax on such sale
 or use imposed under this article plus any tax imposed under the author-
 ity  of  article  twenty-nine  exceeds  the  amount computed by applying
 against such sale or use the state and local rates of tax in  effect  at
 the time such contract was entered into or such bid was submitted.
   § 3. This act shall take effect June 1, 2018, and shall apply to sales
 made and uses occurring on and after such date.

                                  PART X
 
   Section 1. Subdivision 1 of section 1131 of the tax law, as amended by
 chapter 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. 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 liabil-
 ity company, or any employee of an individual proprietorship who as such
 officer, director, employee or manager is under a duty to act  for  such
 corporation,   partnership,  limited  liability  company  or  individual
 proprietorship in complying with any requirement of this article, OR HAS
 SO ACTED; 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.
   §  2.  Subdivision  (a)  of section 1133 of the tax law, as amended by
 chapter 621 of the laws of 1967, is amended to read as follows:

 S. 7509                            40                            A. 9509
 
   (a) (1) Except as otherwise provided in PARAGRAPH TWO OF THIS SUBDIVI-
 SION AND IN section eleven hundred  thirty-seven  OF  THIS  PART,  every
 person  required  to  collect  any  tax imposed by this article shall be
 personally liable for the tax  imposed,  collected  or  required  to  be
 collected  under this article. Any such person shall have the same right
 in respect to collecting the tax from his  customer  or  in  respect  to
 nonpayment  of  the tax by the customer as if the tax were a part of the
 purchase price of the property or service, amusement charge or rent,  as
 the  case  may be, and payable at the same time; provided, however, that
 the tax commission shall be joined as a party in any action or  proceed-
 ing brought to collect the tax.
   (2)  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  THIS ARTICLE: (I) THE
 COMMISSIONER SHALL GRANT THE RELIEF DESCRIBED IN SUBPARAGRAPH  (III)  OF
 THIS  PARAGRAPH TO A LIMITED PARTNER OF A LIMITED PARTNERSHIP (BUT NOT A
 PARTNER OF A LIMITED LIABILITY PARTNERSHIP) OR A  MEMBER  OF  A  LIMITED
 LIABILITY  COMPANY IF SUCH LIMITED PARTNER OR MEMBER DEMONSTRATES TO THE
 SATISFACTION OF THE COMMISSIONER THAT SUCH LIMITED PARTNER'S OR MEMBER'S
 OWNERSHIP INTEREST AND THE PERCENTAGE OF THE DISTRIBUTIVE SHARE  OF  THE
 PROFITS  AND  LOSSES  OF  SUCH  LIMITED PARTNERSHIP OR LIMITED LIABILITY
 COMPANY ARE EACH LESS THAN FIFTY PERCENT, AND SUCH  LIMITED  PARTNER  OR
 MEMBER  WAS  NOT  UNDER  A  DUTY  TO ACT FOR SUCH LIMITED PARTNERSHIP OR
 LIMITED LIABILITY COMPANY IN COMPLYING  WITH  ANY  REQUIREMENT  OF  THIS
 ARTICLE. PROVIDED, HOWEVER, THE COMMISSIONER MAY DENY AN APPLICATION FOR
 RELIEF  TO ANY SUCH LIMITED PARTNER OR MEMBER WHO THE COMMISSIONER FINDS
 HAS ACTED ON BEHALF OF SUCH LIMITED  PARTNERSHIP  OR  LIMITED  LIABILITY
 COMPANY  IN  COMPLYING  WITH ANY REQUIREMENT OF THIS ARTICLE OR HAS BEEN
 CONVICTED OF A CRIME PROVIDED IN THIS CHAPTER  OR  WHO  HAS  A  PAST-DUE
 LIABILITY,  AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-V
 OF THIS CHAPTER.
   (II) SUCH LIMITED PARTNER OR MEMBER MUST  SUBMIT  AN  APPLICATION  FOR
 RELIEF,  ON  A  FORM PRESCRIBED BY THE COMMISSIONER, AND THE INFORMATION
 PROVIDED IN SUCH APPLICATION MUST BE TRUE AND COMPLETE IN  ALL  MATERIAL
 RESPECTS.  PROVIDING  MATERIALLY FALSE OR FRAUDULENT INFORMATION ON SUCH
 APPLICATION SHALL DISQUALIFY SUCH LIMITED  PARTNER  OR  MEMBER  FOR  THE
 RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH, SHALL VOID ANY
 AGREEMENT  WITH  THE COMMISSIONER WITH RESPECT TO SUCH RELIEF, AND SHALL
 RESULT IN SUCH LIMITED PARTNER OR MEMBER BEARING  STRICT  LIABILITY  FOR
 THE  TOTAL  AMOUNT OF TAX, INTEREST AND PENALTY OWED BY THEIR RESPECTIVE
 LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY PURSUANT TO THIS SUBDI-
 VISION.
   (III) A LIMITED PARTNER OF A LIMITED PARTNERSHIP OR MEMBER OF A LIMIT-
 ED LIABILITY COMPANY, WHO MEETS THE REQUIREMENTS SET FORTH IN THIS PARA-
 GRAPH AND WHOSE APPLICATION FOR RELIEF IS APPROVED BY THE  COMMISSIONER,
 SHALL  BE  LIABLE  FOR  THE PERCENTAGE OF THE ORIGINAL SALES AND USE TAX
 LIABILITY OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR  LIMITED  LIABILITY
 COMPANY  THAT  REFLECTS  SUCH  LIMITED  PARTNER'S  OR MEMBER'S OWNERSHIP
 INTEREST OF DISTRIBUTIVE SHARE OF THE PROFITS AND LOSSES OF SUCH LIMITED
 PARTNERSHIP OR LIMITED LIABILITY  COMPANY,  WHICHEVER  IS  HIGHER.  SUCH
 ORIGINAL  LIABILITY SHALL INCLUDE ANY INTEREST ACCRUED THEREON UP TO AND
 INCLUDING THE DATE OF PAYMENT BY SUCH LIMITED PARTNER OR MEMBER  AT  THE
 UNDERPAYMENT  RATE  SET  BY  THE COMMISSIONER PURSUANT TO SECTION ELEVEN
 HUNDRED FORTY-TWO OF THIS PART, AND SHALL BE REDUCED BY THE SUM  OF  ANY
 PAYMENTS MADE BY (A) THE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPA-
 NY;  (B) ANY PERSON REQUIRED TO COLLECT TAX NOT ELIGIBLE FOR RELIEF; AND
 (C) ANY PERSON REQUIRED TO COLLECT TAX WHO WAS ELIGIBLE FOR  RELIEF  BUT
 HAD  NOT  BEEN  APPROVED FOR RELIEF BY THE COMMISSIONER AT THE TIME SUCH

 S. 7509                            41                            A. 9509
 
 PAYMENT WAS MADE. PROVIDED, HOWEVER,  SUCH  LIMITED  PARTNER  OR  MEMBER
 SHALL  NOT BE LIABLE FOR ANY PENALTY OWED BY SUCH LIMITED PARTNERSHIP OR
 LIMITED LIABILITY COMPANY OR ANY OTHER PARTNER OR MEMBER OF SUCH LIMITED
 PARTNERSHIP  OR LIMITED LIABILITY COMPANY. ANY PAYMENT MADE BY A LIMITED
 PARTNER OR MEMBER PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH SHALL NOT
 BE CREDITED AGAINST THE LIABILITY OF OTHER LIMITED PARTNERS  OR  MEMBERS
 OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY WHO
 ARE  ELIGIBLE FOR THE SAME RELIEF; PROVIDED, HOWEVER THAT THE SUM OF THE
 AMOUNTS OWED BY ALL OF THE PERSONS REQUIRED TO COLLECT TAX OF A  LIMITED
 PARTNERSHIP  OR  LIMITED  LIABILITY  COMPANY  SHALL NOT EXCEED THE TOTAL
 LIABILITY OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY.
   § 3. This act shall take effect immediately.
 
                                  PART Y
 
   Section 1. Paragraph 1 of subdivision (a) of section 1115 of  the  tax
 law,  as  amended  by  section 1 of part II of chapter 59 of the laws of
 2014, is amended to read as follows:
   (1) (A) Food, food  products,  beverages,  dietary  foods  and  health
 supplements,  sold for human consumption but not including (i) candy and
 confectionery, (ii) fruit drinks which contain less than seventy percent
 of natural fruit juice, (iii) soft drinks, sodas and beverages  such  as
 are  ordinarily  dispensed  at soda fountains or in connection therewith
 (other than coffee, tea and cocoa) and (iv) beer, wine or other alcohol-
 ic beverages, all of which shall be subject  to  the  retail  sales  and
 compensating  use taxes, whether or not the item is sold in liquid form.
 NOTHING IN THIS SUBPARAGRAPH SHALL BE CONSTRUED  AS  EXEMPTING  FOOD  OR
 DRINK  FROM  THE  TAX  IMPOSED  UNDER  SUBDIVISION (D) OF SECTION ELEVEN
 HUNDRED FIVE OF THIS ARTICLE.
   [The] (B) UNTIL MAY THIRTY FIRST, TWO THOUSAND TWENTY,  THE  food  and
 drink  excluded  from  the  exemption  provided by [this paragraph under
 subparagraphs] CLAUSES (i), (ii) and (iii) OF SUBPARAGRAPH (A)  of  this
 paragraph,  AND  BOTTLED  WATER,  shall be exempt under this [paragraph]
 SUBPARAGRAPH when sold for one dollar and fifty cents  or  less  through
 any  vending  machine  [activated by the use of] THAT ACCEPTS coin[,] OR
 currency[, credit card or debit card] ONLY OR WHEN SOLD FOR TWO  DOLLARS
 OR  LESS  THROUGH  ANY  VENDING MACHINE THAT ACCEPTS ANY FORM OF PAYMENT
 OTHER THAN COIN OR CURRENCY, WHETHER OR NOT  IT  ALSO  ACCEPTS  COIN  OR
 CURRENCY. [With the exception of the provision in this paragraph provid-
 ing  for  an exemption for certain food or drink sold for one dollar and
 fifty cents or less through vending machines, nothing  herein  shall  be
 construed as exempting food or drink from the tax imposed under subdivi-
 sion (d) of section eleven hundred five of this article.]
   § 2. This act shall take effect June 1, 2018, and shall apply to sales
 made and uses occurring on and after such date.
 
                                  PART Z
 
   Section  1. Section 2 of subpart R of part A of chapter 61 of the laws
 of 2017, amending the tax law relating to extending  the  expiration  of
 the  authorization  to the county of Genesee to impose an additional one
 percent of sales and compensating use  taxes,  is  amended  to  read  as
 follows:
   §  2.  Notwithstanding any other provision of law to the contrary, the
 one percent increase in sales and compensating use taxes authorized  for
 the  county of Genesee until November 30, [2019] 2020 pursuant to clause

 S. 7509                            42                            A. 9509
 
 (20) of subparagraph (i) of the opening paragraph of section 1210 of the
 tax law, as amended by section one of this act, shall be divided in  the
 same  manner  and  proportion  as  the  existing three percent sales and
 compensating use taxes in such county are divided.
   §  2.  Section  2  of subpart Z of part A of chapter 61 of the laws of
 2017, amending the tax law relating  to  the  imposition  of  sales  and
 compensating  use  taxes  by the county of Monroe, is amended to read as
 follows:
   § 2. Notwithstanding the provisions of subdivisions  (b)  and  (c)  of
 section 1262 and section 1262-g of the tax law, net collections, as such
 term is defined in section 1262 of the tax law, derived from the imposi-
 tion  of sales and compensating use taxes by the county of Monroe at the
 additional rate of one percent as authorized pursuant to clause (25)  of
 subparagraph  (i)  of  the  opening paragraph of section 1210 of the tax
 law, as amended by section one of this act, which are in addition to the
 current net collections derived from the imposition of such taxes at the
 three percent rate authorized by the opening paragraph of  section  1210
 of  the  tax law, shall be distributed and allocated as follows: for the
 period of December 1, 2017 through November 30,  [2019]  2020  in  cash,
 five  percent  to the school districts in the area of the county outside
 the city of Rochester, three percent to the  towns  located  within  the
 county,  one  and one-quarter percent to the villages located within the
 county, and ninety and three-quarters percent to the city  of  Rochester
 and  county  of  Monroe.  The  amount  of  the ninety and three-quarters
 percent to be distributed and allocated to the  city  of  Rochester  and
 county  of Monroe shall be distributed and allocated to each so that the
 combined total distribution and allocation to each from  the  sales  tax
 revenues  pursuant  to  sections 1262 and 1262-g of the tax law and this
 section shall result in the same  total  amount  being  distributed  and
 allocated  to  the city of Rochester and county of Monroe. The amount so
 distributed and allocated  to  the  county  shall  be  used  for  county
 purposes.  The  foregoing cash payments to the school districts shall be
 allocated on the basis of the enrolled public school pupils, thereof, as
 such term is used in subdivision (b) of section 1262  of  the  tax  law,
 residing in the county of Monroe. The cash payments to the towns located
 within the county of Monroe shall be allocated on the basis of the ratio
 which  the  population  of each town, exclusive of the population of any
 village or portion thereof located within a town,  bears  to  the  total
 population  of  the  towns,  exclusive of the population of the villages
 located within such towns. The cash payments  to  the  villages  located
 within the county shall be allocated on the basis of the ratio which the
 population of each village bears to the total population of the villages
 located  within  the county. The term population as used in this section
 shall have the same meaning as used in subdivision (b) of  section  1262
 of the tax law.
   §  3.  Section  3 of subpart EE of part A of chapter 61 of the laws of
 2017, amending the tax law relating to extending  the  authorization  of
 the county of Onondaga to impose an additional rate of sales and compen-
 sating use taxes, is amended to read as follows:
   §  3.  Notwithstanding  any contrary provision of law, net collections
 from the additional one percent rate of sales and compensating use taxes
 which may be imposed  by  the  county  of  Onondaga  during  the  period
 commencing  December 1, 2018 and ending November 30, [2019] 2020, pursu-
 ant to the authority of section 1210  of  the  tax  law,  shall  not  be
 subject  to any revenue distribution agreement entered into under subdi-
 vision (c) of section 1262 of the tax law, but shall  be  allocated  and

 S. 7509                            43                            A. 9509
 
 distributed  or  paid,  at least quarterly, as follows: (i) 1.58% to the
 county of Onondaga for any county purpose; (ii) 97.79% to  the  city  of
 Syracuse;  and  (iii)  .63%  to  the school districts in accordance with
 subdivision (a) of section 1262 of the tax law.
   §  4.  Section  2 of subpart GG of part A of chapter 61 of the laws of
 2017, amending the tax law relating to extending the  authority  of  the
 county  of Orange to impose an additional rate of sales and compensating
 use taxes, is amended to read as follows:
   § 2. Notwithstanding subdivision (c) of section 1262 of the  tax  law,
 net  collections  from any additional rate of sales and compensating use
 taxes which may be imposed by the county of  Orange  during  the  period
 commencing December 1, 2017, and ending November 30, [2019] 2020, pursu-
 ant  to  the  authority of section 1210 of the tax law, shall be paid to
 the county of Orange and shall be used by such county solely for  county
 purposes  and shall not be subject to any revenue distribution agreement
 entered into pursuant to the authority of  subdivision  (c)  of  section
 1262 of the tax law.
   §  5.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on June 29, 2017.
 
                                  PART AA
 
   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  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
 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, BOOTH,  CATALOG,  AN
 INTERNET WEBSITE, 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 OWNERSHIP INTEREST OF
 MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT,  IN  THE  OTHER,  OR
 WHERE AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR
 INDIRECT,  IS  HELD  IN  EACH  OF 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 FACILI-
 TATES 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 SIXTEEN.
   (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:

 S. 7509                            44                            A. 9509
 
   (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  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
 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  SUBDIVISIONS; 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  SUCH  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

 S. 7509                            45                            A. 9509
 
 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  SUCH  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 THE MARKETPLACE PROVIDER ARE AFFILIATED WITHIN THE MEANING OF
 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  THEMSELVES  AND  SUCH  MARKETPLACE
 SELLER  AS  DESCRIBED IN SUBDIVISION (L) OF SECTION ELEVEN HUNDRED THIR-
 TY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE MARKETPLACE
 SELLER TO THE MARKETPLACE PROVIDER ABOUT SUCH TANGIBLE PERSONAL PROPERTY
 IS ACCURATE.

 S. 7509                            46                            A. 9509
 
   § 6. Section 1142 of the tax law is amended by adding two new subdivi-
 sions 15 and 16 to read as follows:
   15.  TO  PUBLISH  A  LIST  ON  THE DEPARTMENT'S WEBSITE OF MARKETPLACE
 PROVIDERS WHOSE CERTIFICATES OF  AUTHORITY  HAS  BEEN  REVOKED  AND,  IF
 NECESSARY  TO PROTECT SALES TAX REVENUE, PROVIDE BY REGULATION OR OTHER-
 WISE 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 (L) OF SECTION ELEVEN HUNDRED
 THIRTY-TWO  OF  THIS PART BEING MET, SUCH MARKETPLACE PROVIDER IS NOT ON
 SUCH LIST AT THE COMMENCEMENT OF THE QUARTERLY PERIOD COVERED THEREBY.
   16. TO ENFORCE THE PENALTIES IMPOSED  ON  NON-COLLECTING  SELLERS  AND
 NON-COLLECTING  MARKETPLACE  PROVIDERS  PROVIDED  BY  SUBDIVISION (I) OF
 SECTION ELEVEN HUNDRED FORTY-FIVE OF THIS PART BY COMMENCING A  PROCEED-
 ING  UNDER ARTICLE SEVENTY-TWO OF THE CIVIL PRACTICE LAW AND RULES. THIS
 MEANS ENFORCING SUCH PENALTIES IS IN ADDITION TO ANY OTHER LAWFUL  MEANS
 THE  COMMISSIONER  MAY USE TO ENFORCE SUCH PENALTIES. THE VENUE FOR SUCH
 PROCEEDING SHALL BE ALBANY COUNTY.
   § 7. The tax law is amended by adding a new section 1135-a to read  as
 follows:
   §  1135-A.  REPORTING  REQUIREMENTS. (A) (1) THE FOLLOWING DEFINITIONS
 APPLY TO THE TAXES IMPOSED BY THIS ARTICLE AND PURSUANT TO THE AUTHORITY
 OF ARTICLE TWENTY-NINE OF THIS CHAPTER:
   (A) NON-COLLECTING SELLER MEANS A PERSON WHO MAKES SALES  OF  TANGIBLE
 PERSONAL PROPERTY, THE USE OF WHICH IS TAXED BY THIS ARTICLE, BUT WHO IS
 NOT  REQUIRED  TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN
 HUNDRED THIRTY-FOUR OF THIS PART AND WHO DOES NOT COLLECT TAX  OR  MONEY
 PURPORTEDLY  AS  TAX  IMPOSED  BY  THIS  ARTICLE  IN  REGARD TO TANGIBLE
 PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE.
   (B) NON-COLLECTING MARKETPLACE PROVIDER MEANS A MARKETPLACE  PROVIDER,
 AS  DEFINED  BY  SECTION  ELEVEN HUNDRED ONE OF THIS ARTICLE, WHO IS NOT
 REQUIRED TO OBTAIN A  CERTIFICATE  OF  AUTHORITY  UNDER  SECTION  ELEVEN
 HUNDRED  THIRTY-FOUR  OF THIS PART AND WHO DOES NOT COLLECT TAX OR MONEY
 PURPORTEDLY AS TAX  IMPOSED  BY  THIS  ARTICLE  IN  REGARD  TO  TANGIBLE
 PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE.
   (C)  NEW  YORK  PURCHASER  MEANS  ANY  PERSON  WHO  PURCHASES TANGIBLE
 PERSONAL PROPERTY FOR DELIVERY TO A LOCATION IN THIS STATE.
   (D) LAST KNOWN ADDRESS OF A NEW YORK PURCHASER MEANS, FOR PURPOSES  OF
 THIS  SUBDIVISION,  SUBDIVISION SIXTEEN OF SECTION ELEVEN HUNDRED FORTY-
 TWO, AND SUBDIVISION (I) OF SECTION ELEVEN HUNDRED  FORTY-FIVE  OF  THIS
 PART,  THE  PURCHASER'S  BILLING ADDRESS OR, IF UNKNOWN, THE PURCHASER'S
 SHIPPING ADDRESS. IF NO BILLING OR SHIPPING ADDRESS IS KNOWN, THIS  TERM
 SHALL MEAN THE PURCHASER'S LAST KNOWN E-MAIL ADDRESS.
   (2) THE FOLLOWING REQUIREMENTS APPLY TO A NON-COLLECTING SELLER:
   (A)  A  NON-COLLECTING SELLER'S RECORDS SHALL BE MADE AVAILABLE TO THE
 COMMISSIONER UPON REQUEST. THESE RECORDS  SHALL  INCLUDE,  BUT  ARE  NOT
 LIMITED  TO,  EACH  NEW  YORK PURCHASER'S NAME AND LAST KNOWN ADDRESS AS
 DEFINED BY SUBPARAGRAPH (D) OF PARAGRAPH ONE OF  THIS  SUBDIVISION,  AND
 THE  TOTAL OF THE NON-COLLECTING SELLER'S RECEIPTS FROM THE PURCHASES OF
 THE NEW YORK PURCHASER.
   (B) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE  OF  THIS  SUBDIVI-
 SION,  A  NON-COLLECTING  SELLER SHALL FILE AN ANNUAL INFORMATION RETURN
 WITH THE COMMISSIONER. SUCH RETURN SHALL INCLUDE THE TOTAL OF  THE  NON-
 COLLECTING SELLER'S RECEIPTS FROM PURCHASES OF TANGIBLE PERSONAL PROPER-
 TY  THAT WAS DELIVERED TO A LOCATION IN THIS STATE FOR THE CALENDAR YEAR
 COVERED BY THE RETURN, TOGETHER WITH SUCH OTHER INFORMATION THE  COMMIS-

 S. 7509                            47                            A. 9509
 
 SIONER  MAY PRESCRIBE.   SUCH RETURN SHALL BE FILED ON OR BEFORE JANUARY
 THIRTY-FIRST OF EACH YEAR AND SHALL COVER THE PRIOR CALENDAR YEAR,  WITH
 THE  FIRST  SUCH RETURN DUE ON JANUARY THIRTY-FIRST, TWO THOUSAND TWENTY
 FOR THE CALENDAR YEAR TWO THOUSAND NINETEEN.
   (C)  EXCEPT  AS  PROVIDED IN PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVI-
 SION, A NON-COLLECTING SELLER  SHALL  PROVIDE  AN  ANNUAL  STATEMENT  OF
 PURCHASES  TO EACH NEW YORK PURCHASER FOR PURCHASES OF TANGIBLE PERSONAL
 PROPERTY DELIVERED TO A LOCATION IN THIS STATE FROM SUCH  SELLER  DURING
 THE  CALENDAR YEAR COVERED BY THE STATEMENT. SUCH ANNUAL STATEMENT SHALL
 INCLUDE: (I) A STATEMENT THAT SALES OR USE TAX WAS NOT COLLECTED ON  THE
 PURCHASER'S  TRANSACTIONS  IN  THE  PRIOR  CALENDAR  YEAR  AND  THAT THE
 PURCHASER MAY BE REQUIRED TO REMIT SUCH TAX DIRECTLY TO THE  COMMISSION-
 ER;  (II)  A LIST OF TRANSACTIONS ENTERED INTO DURING THE PRIOR CALENDAR
 YEAR BY SUCH PURCHASER FOR DELIVERY TO A LOCATION INTO THIS STATE  SHOW-
 ING,  THE  DATE  OF  EACH  PURCHASE,  A GENERAL DESCRIPTION OF EACH ITEM
 PURCHASED, AND THE AMOUNT PAID FOR EACH ITEM, INCLUDING ANY SHIPPING  OR
 DELIVERY  CHARGES;  (III) INSTRUCTIONS FOR OBTAINING ADDITIONAL INFORMA-
 TION REGARDING WHETHER AND HOW TO REMIT THE SALES  OR  USE  TAX  TO  THE
 COMMISSIONER;  AND (IV) A STATEMENT THAT SUCH SELLERS MAY BE REQUIRED TO
 ANNUALLY REPORT THE AGGREGATE DOLLAR VALUE OF THE PURCHASER'S  PURCHASES
 TO  THE  COMMISSIONER.  SUCH  STATEMENT  SHALL  BE SENT TO EACH NEW YORK
 PURCHASER ON OR BEFORE JANUARY THIRTY-FIRST OF EACH  YEAR,  STARTING  IN
 THE  YEAR TWO THOUSAND TWENTY, COVERING SALES MADE IN THE PRIOR CALENDAR
 YEAR. SUCH STATEMENT SHALL BE SENT BY MAIL IN AN  ENVELOPE  BEARING  THE
 STATEMENT  "IMPORTANT  TAX INFORMATION" TO THE NEW YORK PURCHASER'S LAST
 KNOWN ADDRESS AS DEFINED BY SUBPARAGRAPH (D) OF PARAGRAPH  ONE  OF  THIS
 SUBDIVISION,  UNLESS  THE  PURCHASER'S  LAST  KNOWN ADDRESS IS AN E-MAIL
 ADDRESS, IN WHICH CASE THE STATEMENT  IS  TO  BE  SENT  BY  E-MAIL,  THE
 SUBJECT LINE OF WHICH SHALL STATE "IMPORTANT TAX INFORMATION".
   (D)  EXCEPT  AS  PROVIDED IN PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVI-
 SION, A NON-COLLECTING SELLER SHALL PROMINENTLY DISPLAY A NOTICE ON  ALL
 ORDER  FORMS,  AND  UPON  EACH  SALES RECEIPT OR OTHER MEMORANDUM OF THE
 PRICE, WHETHER ELECTRONIC OR ON PAPER, PROVIDED TO A NEW YORK  PURCHASER
 MAKING  A  PURCHASE  OF  TANGIBLE PERSONAL PROPERTY TO BE DELIVERED TO A
 LOCATION IN THIS STATE, INCLUDING ANY SCREEN THAT SUMMARIZES THE  TRANS-
 ACTION  PRIOR  TO THE COMPLETION OF THE SALE. SUCH NOTICE SHALL INDICATE
 THAT NEITHER NEW YORK STATE  AND  LOCAL  SALES  NOR  USE  TAX  IS  BEING
 COLLECTED  OR  REMITTED UPON THE TRANSACTION, AND THAT THE PURCHASER MAY
 BE REQUIRED TO REMIT SUCH TAX DIRECTLY TO THE COMMISSIONER.
   (3) A NON-COLLECTING SELLER SHALL  KEEP  RECORDS  OF  THE  INFORMATION
 DESCRIBED  IN  SUBPARAGRAPHS  (A),  (B) AND (C) OF PARAGRAPH TWO OF THIS
 SUBDIVISION, ALONG WITH PROOF THAT IT HAS PROVIDED PURCHASERS  WITH  ANY
 PER-PURCHASE  NOTICES  OR  ANNUAL  STATEMENTS OF PURCHASES REQUIRED. THE
 NON-COLLECTING SELLER SHALL KEEP SUCH RECORDS FOR SUCH  PERIODS  AND  IN
 SUCH  MANNER  AS  PRESCRIBED FOR RECORDS REQUIRED TO BE MAINTAINED UNDER
 SUBDIVISIONS (A) AND (G) OF SECTION ELEVEN HUNDRED THIRTY-FIVE  OF  THIS
 PART,  OR  AS  THE COMMISSIONER MAY OTHERWISE REQUIRE BY REGULATION. THE
 NON-COLLECTING SELLER SHALL MAKE THOSE RECORDS AVAILABLE FOR  INSPECTION
 AND EXAMINATION AT ANY TIME UPON DEMAND BY THE COMMISSIONER.
   (4)  THE  REQUIREMENTS  IN SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH
 TWO OF THIS SUBDIVISION DO NOT APPLY TO A NON-COLLECTING SELLER FOR  ANY
 CALENDAR YEAR IN WHICH THE NON-COLLECTING SELLER'S RECEIPTS FROM ALL NEW
 YORK  PURCHASERS  ARE  LESS  THAN  FIVE MILLION DOLLARS DURING THE PRIOR
 CALENDAR YEAR.
   (5) THE REQUIREMENTS IN SUBPARAGRAPHS (B), (C) AND  (D)  OF  PARAGRAPH
 TWO  OF  THIS  SUBDIVISION  DO  NOT  APPLY TO A NON-COLLECTING SELLER IN

 S. 7509                            48                            A. 9509
 
 REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY SUBJECT TO TAX
 UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE IF,
 THE NON-COLLECTING SELLER CAN SHOW THAT SUCH SALE  WAS  FACILITATED  BY:
 (A)  A  MARKETPLACE  PROVIDER  FROM  WHOM SUCH NON-COLLECTING SELLER HAS
 RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION AS
 DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (L) OF SECTION ELEVEN  HUNDRED
 THIRTY-TWO  OF  THIS  PART; OR (B) A NON-COLLECTING MARKETPLACE PROVIDER
 WHO FULFILLED THE REQUIREMENTS OF SUBPARAGRAPHS  (B),  (C)  AND  (D)  OF
 PARAGRAPH TWO OF THIS SUBDIVISION ON ITS BEHALF.
   (B)  (1)  A  NON-COLLECTING  MARKETPLACE  PROVIDER  SHALL  PERFORM THE
 REQUIREMENTS IN PARAGRAPH TWO OF SUBDIVISION  (A)  OF  THIS  SECTION  ON
 BEHALF  OF A NON-COLLECTING SELLER FOR ALL SALES IT FACILITATES FOR SUCH
 NON-COLLECTING SELLER.
   (2) NON-COLLECTING MARKETPLACE PROVIDERS SHALL ALSO PROVIDE NOTICE  TO
 ALL  NON-COLLECTING  SELLERS  FOR WHOM THEY FACILITATE SALES OF TANGIBLE
 PERSONAL PROPERTY THAT IS DELIVERED TO A LOCATION IN  THIS  STATE,  SUCH
 NOTICE SHALL INCLUDE THE FOLLOWING INFORMATION:
   (A)  SUCH SELLERS MAY BE REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY
 UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART  AND  COLLECT  THE
 TAXES  IMPOSED  BY THIS ARTICLE AND PURSUANT TO THE AUTHORITY OF ARTICLE
 TWENTY-NINE OF THIS CHAPTER, OR, WHERE SUCH SELLERS ARE NOT REQUIRED  TO
 OBTAIN  A CERTIFICATE AND COLLECT TAX, THAT SUCH SELLERS ARE REQUIRED TO
 COMPLY WITH THE REQUIREMENTS OF THIS PARAGRAPH;
   (B) THE NON-COLLECTING MARKETPLACE PROVIDER WILL PROVIDE EACH SELLER'S
 NAME, ADDRESS AND AGGREGATE AMOUNT OF SALES DELIVERED TO A  LOCATION  IN
 THIS STATE TO THE COMMISSIONER UPON REQUEST; AND
   (C)  THE NON-COLLECTING MARKETPLACE PROVIDER IS REPORTING THE INFORMA-
 TION AND SENDING THE NOTICES REQUIRED BY SUBPARAGRAPHS (B), (C) AND  (D)
 OF  PARAGRAPH  TWO  OF  SUBDIVISION (A) OF THIS SECTION ON BEHALF OF THE
 NON-COLLECTING SELLER FOR SUCH SALE IF IT WAS FACILITATED BY  SUCH  NON-
 COLLECTING MARKETPLACE PROVIDER.
   (C)  THE COMMISSIONER MAY, IN THEIR DISCRETION, MODIFY, WITHOUT ADDING
 TO, THE INFORMATION OTHERWISE REQUIRED TO BE INCLUDED IN THE INFORMATION
 RETURN, ANNUAL STATEMENT OF PURCHASES, OR PER-PURCHASE  NOTICE  REQUIRED
 BY  THIS  SUBDIVISION  IF  OTHER  STATES IMPOSE SIMILAR REQUIREMENTS, IN
 ORDER TO FACILITATE THE COMPLIANCE OF NON-COLLECTING SELLERS.
   § 8. Subdivision (i) of section 1145 of  the  tax  law,  as  added  by
 section 2 of subpart G of part V-1 of chapter 57 of the laws of 2009, is
 amended to read as follows:
   (i)(1)  Every person required to file an information return by SECTION
 ELEVEN HUNDRED  THIRTY-FIVE-A  OR  subdivision  (i)  of  section  eleven
 hundred  thirty-six  of  this  part,  OR  AN  ANNUAL STATEMENT OR NOTICE
 REQUIRED BY SECTION ELEVEN HUNDRED THIRTY-FIVE-A OF THIS PART who  [(A)]
 fails  to  provide  any of the information required [by paragraph one or
 two of subdivision (i) of section eleven hundred thirty-six of this part
 for a vendor, operator, or recipient] TO BE PROVIDED IN SUCH INFORMATION
 RETURN OR NOTICE, OR WHO FAILS TO PERFORM THE REQUIREMENTS OF  PARAGRAPH
 TWO  OF  SUBDIVISION (B) OF SECTION ELEVEN HUNDRED THIRTY-FIVE-A OF THIS
 PART, or who fails to include any such  information  that  is  true  and
 correct [(whether or not such a report is filed) for a vendor, operator,
 or  recipient, or (B) fails to provide the information required by para-
 graph four of subdivision (i) of section eleven  hundred  thirty-six  of
 this  part  to  a  vendor, operator, or recipient specified in paragraph
 four of subdivision (i) of section eleven  hundred  thirty-six  of  this
 part],  will,  in addition to any other penalty provided in this article
 or otherwise imposed by law, be subject to a  penalty  of  five  hundred

 S. 7509                            49                            A. 9509
 
 dollars  for  ten  or  fewer  failures, and up to fifty dollars for each
 additional failure.
   (2)  Every  person  failing  to file an information return required by
 SECTION ELEVEN HUNDRED THIRTY-FIVE-A OR subdivision (i) of section elev-
 en hundred thirty-six OF THIS PART OR AN ANNUAL STATEMENT OR  NOTICE  BY
 SECTION  ELEVEN  HUNDRED  THIRTY-FIVE-A  of  this  part  within the time
 required [by subdivision (i) of section  eleven  hundred  thirty-six  of
 this  part], will, in addition to any other penalty provided for in this
 article or otherwise imposed by law, be  subject  to  a  penalty  in  an
 amount  not  to  exceed  two  thousand  dollars  for  each such failure,
 provided that the minimum penalty under this paragraph is  five  hundred
 dollars.
   (3)  In  no  event  will  the penalty imposed by paragraph one of this
 subdivision, or the aggregate of the penalties imposed under  paragraphs
 one  and  two  of  this subdivision, exceed ten thousand dollars for any
 annual filing period [as described by paragraph three of subdivision (i)
 of section eleven hundred thirty-six of this part].
   (4) If the commissioner determines that any of the failures  that  are
 subject to penalty under this subdivision was entirely due to reasonable
 cause  and  not  due to willful neglect, the commissioner must remit the
 penalty imposed under this subdivision. These penalties will  be  deter-
 mined,  assessed,  collected, paid, disposed of and enforced in the same
 manner as taxes imposed by this article and all the provisions  of  this
 article  relating  thereto  will be deemed also to refer to these penal-
 ties.
   § 9. 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 provision had not been included herein.
   §  10. This act shall take effect immediately and shall apply to sales
 made on or after September 1, 2018; provided, however, that the require-
 ments in subparagraphs (B) and (C) of paragraph 2 of subdivision (a)  of
 section  1135-a as added by section two of this act shall apply to sales
 made on or after January 1, 2019.
 
                                  PART BB
 
   Section 1. 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] CIGARS,
 VAPOR PRODUCTS, or tobacco, other than cigarettes, intended for consump-
 tion by smoking, chewing, INHALING VAPORS or as snuff.
   § 2. Subdivision 12 of section 470 of the tax law, as added by chapter
 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

 S. 7509                            50                            A. 9509
 
 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.
   § 3. Section 470 of the tax law is amended by adding a new subdivision
 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  THIRTY-THREE  HUNDRED
 SIXTY-TWO OF THE PUBLIC HEALTH LAW.
   §  4.  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  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.
   § 5. 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  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.
   §  6.  Subdivision  (a) of section 471-c of the tax law, as amended by
 section 2 of part I-1 of chapter 57 of the laws of 2009, paragraphs  (i)
 and  (ii)  as  amended  by  section  20  and paragraph (iii) as added by
 section 21 of part D of chapter 134 of the laws of 2010, is  amended  to
 read as follows:
   (a)  There  is  hereby  imposed and shall be paid a tax on all tobacco
 products used in the state by any person, except that no such tax  shall
 be imposed (1) if the tax provided in section four hundred seventy-one-b
 of this article is paid, or (2) on the use of tobacco products which are
 exempt  from  the  tax imposed by said section, or (3) on the use of two
 hundred fifty cigars or less, [or] five pounds or less of tobacco  other
 than roll-your-own tobacco, [or] thirty-six ounces or less of roll-your-
 own tobacco OR FIVE HUNDRED MILLILITERS OR LESS OF VAPOR PRODUCT brought
 into the state on, or in the possession of, any person.
   (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.
   (ii) Such tax on snuff shall be at the rate of two dollars  per  ounce
 and  a  proportionate rate on any fractional parts of an ounce, provided
 that cans or packages of snuff with a net weight of less than one  ounce
 shall  be  taxed at the equivalent rate of cans or packages weighing one
 ounce. Such tax shall be computed based on the net weight as  listed  by
 the manufacturer.
   (iii)  Such  tax on little cigars shall be at the same rate imposed on
 cigarettes under this article and is intended to be  imposed  only  once
 upon the sale of any little cigars.
   (IV)  SUCH  TAX  ON VAPOR PRODUCTS SHALL BE AT A RATE OF TEN CENTS PER
 FLUID MILLILITER OF THE VAPOR PRODUCT. ALL INVOICES FOR  VAPOR  PRODUCTS
 ISSUED  BY  DISTRIBUTORS  AND WHOLESALERS MUST STATE THE AMOUNT OF VAPOR
 PRODUCT IN MILLILITERS.

 S. 7509                            51                            A. 9509
 
   § 7. 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.
   § 8. 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,
 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.
   § 9. 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
 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 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
 MILLILITERS 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,
 however,  that  any such penalty imposed shall not exceed seven thousand

 S. 7509                            52                            A. 9509
 
 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 fraction thereof, in excess of fifty cigars [or], one pound of tobac-
 co  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.
   §  10.  Items  (I)  and  (II)  of clause (B) and items (I) and (II) of
 clause (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,
 are amended to read as follows:
   (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 MILLI-
 LITERS 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
 five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILI-
 TERS 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 deal-
 er; provided, however, that any such penalty imposed under  this  clause
 shall not exceed ten thousand dollars in the aggregate.
   (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.
   § 11. Paragraph (a) of subdivision 2 of section 481 of the tax law, as
 amended by chapter 552 of the laws  of  2008,  is  amended  to  read  as
 follows:
   (a)  The  possession within this state of more than four hundred ciga-
 rettes in unstamped or unlawfully stamped packages [or], more  than  two

 S. 7509                            53                            A. 9509
 
 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 by any person other than an agent or distributor,  as  the  case
 may  be, OR FIVE HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT at any one
 time shall be presumptive  evidence  that  such  cigarettes  or  tobacco
 products are subject to tax as provided by this article.
   §  12.  Subdivisions  (a)  and  (h) 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, 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,  (IV)
 FORTY-FOUR  THOUSAND  MILLILITERS OF VAPOR PRODUCT OR MORE or has previ-
 ously been convicted two or more times of a violation of  paragraph  one
 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
 taxation and finance] under article twenty of  this  chapter,  or  other
 person  treated as a distributor pursuant to section four hundred seven-
 ty-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  imprison-
 ment 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 chap-
 ter shall be guilty of a misdemeanor punishable by a fine  of  not  more
 than  five  thousand  dollars or by a term of imprisonment not to exceed
 thirty days.
   (3) Any person, other than a distributor appointed by the commissioner
 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

 S. 7509                            54                            A. 9509
 
 assumed  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.
   § 13. 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  MILLI-
 LITERS OF VAPOR PRODUCT for sale within the state, or produces, manufac-
 tures  or compounds tobacco products within the state 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.  If,
 within any ninety day period, one  thousand  or  more  cigars  [or  five
 hundred],  TWENTY  pounds or more of tobacco OR TWO 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 misde-
 meanor.  Provided  further, that any person who has twice been convicted
 under this section shall be guilty of a class E felony  for  any  subse-
 quent  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.
   §  14. 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:
   (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 caus-
 ing 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

 S. 7509                            55                            A. 9509
 
 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.
   § 15. 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.
   §  16.  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 such date.
 
                                  PART CC
 
   Section 1. The tax law is amended by adding a new article 20-C to read
 as follows:
                               ARTICLE 20-C
                         OPIOID EPIDEMIC SURCHARGE
 SECTION 492. DEFINITIONS.
         493. IMPOSITION OF SURCHARGE.
         494. RETURNS TO BE SECRET.
   §  492.  DEFINITIONS.  WHEN  USED IN THIS ARTICLE, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1. "OPIOID" SHALL MEAN AN "OPIATE" AS DEFINED BY  SUBDIVISION  TWENTY-
 THREE  OF SECTION THIRTY-THREE HUNDRED TWO OF THE PUBLIC HEALTH LAW, AND
 ANY NATURAL, SYNTHETIC, OR SEMISYNTHETIC "NARCOTIC DRUG" AS  DEFINED  BY
 SUBDIVISION  TWENTY-TWO OF SUCH SECTION, THAT HAS AGONIST, PARTIAL AGON-
 IST, OR AGONIST/ANTAGONIST MORPHINE-LIKE ACTIVITIES OR  EFFECTS  SIMILAR
 TO  NATURAL OPIUM ALKALOIDS AND ANY DERIVATIVE, CONGENER, OR COMBINATION
 THEREOF, LISTED IN SCHEDULES II-IV OF SECTION THIRTY-THREE  HUNDRED  SIX
 OF THE PUBLIC HEALTH LAW.
   2.  "UNIT"  SHALL  MEAN  THE  DOSAGE FORM OF AN OPIOID-CONTAINING DRUG
 INCLUDING, BUT NOT LIMITED TO, TABLETS, CAPSULES, SUPPOSITORIES, TOPICAL
 (TRANSDERMAL), BUCCAL OR ANY  OTHER  DOSAGE  FORM,  SUCH  AS  WEIGHT  OR
 VOLUME.
   3. "UNIT STRENGTH" SHALL MEAN THE AMOUNT OF OPIOID IN A UNIT, AS MEAS-
 URED BY WEIGHT, VOLUME, CONCENTRATION OR OTHER METRIC.
   4.  "MORPHINE  MILLIGRAM EQUIVALENT CONVERSION FACTOR" SHALL MEAN THAT
 REFERENCE STANDARD OF A PARTICULAR OPIOID AS IT RELATES  IN  POTENCY  TO
 MORPHINE AS DETERMINED BY THE COMMISSIONER OF HEALTH.

 S. 7509                            56                            A. 9509
 
   5. "MORPHINE MILLIGRAM EQUIVALENT" SHALL MEAN A UNIT MULTIPLIED BY ITS
 UNIT STRENGTH MULTIPLIED BY THE MORPHINE MILLIGRAM EQUIVALENT CONVERSION
 FACTOR OF THE OPIOID CONTAINED IN SUCH UNIT.
   6. "ESTABLISHMENT" SHALL MEAN ANY PERSON, FIRM, CORPORATION OR ASSOCI-
 ATION  REQUIRED  TO BE REGISTERED WITH THE EDUCATION DEPARTMENT PURSUANT
 TO SECTION SIXTY-EIGHT HUNDRED  EIGHT  OR  SECTION  SIXTY-EIGHT  HUNDRED
 EIGHT-B  OF  THE EDUCATION LAW, AS WELL AS ANY PERSON, FIRM, CORPORATION
 OR ASSOCIATION THAT WOULD BE REQUIRED TO BE REGISTERED WITH  THE  EDUCA-
 TION DEPARTMENT PURSUANT TO SUCH SECTION SIXTY-EIGHT HUNDRED EIGHT-B BUT
 FOR THE EXCEPTION IN SUBDIVISION TWO OF SUCH SECTION.
   7.  "INVOICE"  SHALL MEAN THE INVOICE, SALES SLIP, MEMORANDUM OF SALE,
 OR OTHER DOCUMENT EVIDENCING A SALE OF AN OPIOID.
   § 493. IMPOSITION OF SURCHARGE. 1. THERE IS HEREBY IMPOSED A SURCHARGE
 ON THE SALE OF ANY OPIOID OF TWO CENTS PER MORPHINE MILLIGRAM EQUIVALENT
 SOLD.  SUCH SURCHARGE SHALL BE IMPOSED ON THE FIRST SALE OF SUCH  OPIOID
 IN  THE STATE, EXCEPT THAT SUCH SURCHARGE SHALL NOT APPLY WHEN SUCH SALE
 IS TO ANY PROGRAM OPERATED PURSUANT TO ARTICLE THIRTY-TWO OF THE  MENTAL
 HYGIENE  LAW.   THIS SURCHARGE SHALL BE CHARGED AGAINST, AND BE PAID BY,
 THE ESTABLISHMENT MAKING THE FIRST SALE OF SUCH OPIOID IN THE STATE, AND
 SHALL NOT BE ADDED AS A SEPARATE CHARGE OR  LINE  ITEM  ON  ANY  INVOICE
 GIVEN TO THE CUSTOMER OR OTHERWISE PASSED DOWN TO THE CUSTOMER. HOWEVER,
 AN  ESTABLISHMENT LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE SHALL
 CLEARLY NOTE ON THE INVOICE FOR THE FIRST SALE OF AN OPIOID IN THE STATE
 ITS LIABILITY FOR THE SURCHARGE,  ALONG  WITH  ITS  NAME,  ADDRESS,  AND
 TAXPAYER  IDENTIFICATION  NUMBER.  ALL  SALES OF AN OPIOID IN THIS STATE
 SHALL BE PRESUMED TO BE THE FIRST  SALE  OF  SUCH,  AND  SHALL  ALSO  BE
 PRESUMED  TO BE SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE, UNLESS
 THE CONTRARY IS ESTABLISHED BY THE SELLER.
   2. EVERY ESTABLISHMENT LIABLE FOR THE SURCHARGE IMPOSED BY THIS  ARTI-
 CLE  SHALL  FILE  WITH THE COMMISSIONER A RETURN, ON FORMS PRESCRIBED BY
 THE COMMISSIONER, INDICATING THE TOTAL MORPHINE MILLIGRAM EQUIVALENT  OF
 OPIOIDS IT SOLD IN THE STATE, THE TOTAL MORPHINE MILLIGRAM EQUIVALENT OF
 SUCH  OPIOIDS THAT ARE SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE,
 THE AMOUNT OF SURCHARGE DUE THEREON, AND SUCH FURTHER INFORMATION AS THE
 COMMISSIONER MAY REQUIRE. SUCH RETURNS SHALL BE DUE  ON  OR  BEFORE  THE
 TWENTIETH  DAY  OF  EACH  MONTH, AND SHALL COVER ALL OPIOID SALES IN THE
 STATE MADE IN THE MONTH PRIOR, EXCEPT THAT THE FIRST RETURN REQUIRED  TO
 BE  FILED  PURSUANT  TO  THIS  SECTION SHALL BE DUE ON OR BEFORE JANUARY
 TWENTIETH, TWO THOUSAND NINETEEN AND SHALL COVER ALL OPIOID SALES OCCUR-
 RING IN THE PERIOD BETWEEN THE EFFECTIVE DATE OF THIS ARTICLE AND DECEM-
 BER THIRTY-FIRST, TWO THOUSAND EIGHTEEN.   EVERY ESTABLISHMENT  REQUIRED
 TO  FILE  A  RETURN UNDER THIS SECTION SHALL, AT THE TIME OF FILING SUCH
 RETURN, PAY TO THE COMMISSIONER THE TOTAL AMOUNT OF  SURCHARGE  DUE  FOR
 THE  PERIOD  COVERED BY SUCH RETURN.  IF A RETURN IS NOT FILED WHEN DUE,
 THE SURCHARGE SHALL BE DUE ON THE DAY ON WHICH THE RETURN IS REQUIRED TO
 BE FILED. THE COMMISSIONER MAY REQUIRE THAT  THE  RETURNS  AND  PAYMENTS
 REQUIRED BY THIS ARTICLE BE FILED OR PAID ELECTRONICALLY.
   3. ESTABLISHMENTS MAKING SALES OF OPIOIDS IN THIS STATE SHALL MAINTAIN
 ALL  INVOICES  PERTAINING  TO  SUCH SALES FOR SIX YEARS AFTER THE RETURN
 REPORTING SUCH SALES IS FILED WITH THE COMMISSIONER, UNLESS THE  COMMIS-
 SIONER  PROVIDES FOR A DIFFERENT RETENTION PERIOD BY RULE OR REGULATION.
 THE ESTABLISHMENT SHALL PRODUCE SUCH RECORDS UPON DEMAND BY THE  COMMIS-
 SIONER.
   4.  WHENEVER THE COMMISSIONER SHALL DETERMINE THAT ANY MONEYS RECEIVED
 UNDER THE PROVISIONS OF THIS ARTICLE WERE PAID IN ERROR, HE OR  SHE  MAY
 CAUSE  THE  SAME  TO BE REFUNDED, WITH INTEREST, EXCEPT THAT NO INTEREST

 S. 7509                            57                            A. 9509
 
 SHALL BE ALLOWED OR PAID IF THE AMOUNT THEREOF WOULD BE  LESS  THAN  ONE
 DOLLAR.  SUCH  INTEREST  SHALL  BE  AT  THE  OVERPAYMENT RATE SET BY THE
 COMMISSIONER PURSUANT TO SUBDIVISION TWENTY-SIXTH OF SECTION ONE HUNDRED
 SEVENTY-ONE  OF  THIS  CHAPTER, OR IF NO RATE IS SET, AT THE RATE OF SIX
 PERCENT PER ANNUM, FROM THE DATE WHEN THE SURCHARGE, PENALTY OR INTEREST
 TO BE REFUNDED WAS PAID TO A DATE PRECEDING THE DATE OF THE REFUND CHECK
 BY NOT MORE THAN THIRTY DAYS.  PROVIDED, HOWEVER, THAT FOR THE  PURPOSES
 OF  THIS  SUBDIVISION, ANY SURCHARGE PAID BEFORE THE LAST DAY PRESCRIBED
 FOR ITS PAYMENT SHALL BE DEEMED TO HAVE BEEN PAID ON SUCH LAST DAY. SUCH
 MONEYS RECEIVED UNDER THE PROVISIONS OF THIS ARTICLE  THAT  THE  COMMIS-
 SIONER  SHALL DETERMINE WERE PAID IN ERROR, MAY BE REFUNDED OUT OF FUNDS
 IN THE CUSTODY OF THE COMPTROLLER  TO  THE  CREDIT  OF  SUCH  SURCHARGES
 PROVIDED  AN  APPLICATION THEREFOR IS FILED WITH THE COMMISSIONER WITHIN
 TWO YEARS FROM THE TIME THE ERRONEOUS PAYMENT WAS MADE.
   5. THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL  APPLY
 TO THE SURCHARGE IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE
 SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE HAD BEEN INCOR-
 PORATED  IN  FULL  INTO  THIS  SECTION AND HAD EXPRESSLY REFERRED TO THE
 SURCHARGE IMPOSED BY  THIS  ARTICLE,  EXCEPT  TO  THE  EXTENT  THAT  ANY
 PROVISION  OF  SUCH  ARTICLE  IS EITHER INCONSISTENT WITH A PROVISION OF
 THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE.
   6. (A) THE SURCHARGES, INTEREST, AND PENALTIES IMPOSED BY THIS ARTICLE
 AND COLLECTED OR RECEIVED BY THE COMMISSIONER SHALL BE  DEPOSITED  DAILY
 WITH  SUCH  RESPONSIBLE BANKS, BANKING HOUSES OR TRUST COMPANIES, AS MAY
 BE DESIGNATED BY THE STATE COMPTROLLER, TO  THE  CREDIT  OF  THE  OPIOID
 PREVENTION,  TREATMENT  AND  RECOVERY  ACCOUNT  ESTABLISHED  PURSUANT TO
 SECTION NINETY-SEVEN-AAAAA OF THE STATE FINANCE LAW. AN ACCOUNT  MAY  BE
 ESTABLISHED  IN  ONE OR MORE OF SUCH DEPOSITORIES. SUCH DEPOSITS WILL BE
 KEPT SEPARATE AND APART FROM ALL OTHER MONEY IN THE  POSSESSION  OF  THE
 STATE COMPTROLLER. THE STATE COMPTROLLER SHALL REQUIRE ADEQUATE SECURITY
 FROM  ALL  SUCH DEPOSITORIES. OF THE TOTAL REVENUE COLLECTED OR RECEIVED
 UNDER THIS ARTICLE, THE STATE COMPTROLLER SHALL RETAIN  SUCH  AMOUNT  AS
 THE  COMMISSIONER  MAY  DETERMINE TO BE NECESSARY FOR REFUNDS UNDER THIS
 ARTICLE. THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM  THE
 AMOUNTS  IT  RECEIVES  UNDER THIS ARTICLE, BEFORE DEPOSIT INTO THE TRUST
 ACCOUNTS DESIGNATED BY THE STATE COMPTROLLER, A REASONABLE AMOUNT NECES-
 SARY TO EFFECTUATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO  REIM-
 BURSE  THE  DEPARTMENT FOR THE COSTS INCURRED TO ADMINISTER, COLLECT AND
 DISTRIBUTE THE SURCHARGE IMPOSED BY THIS ARTICLE.
   (B) ON OR BEFORE THE TWELFTH AND TWENTY-SIXTH DAY OF  EACH  SUCCEEDING
 MONTH,  AFTER  RESERVING SUCH AMOUNT FOR SUCH REFUNDS AND DEDUCTING SUCH
 AMOUNTS FOR SUCH COSTS, AS PROVIDED FOR IN PARAGRAPH (A) OF THIS  SUBDI-
 VISION,  THE  COMMISSIONER  SHALL  CERTIFY  TO THE STATE COMPTROLLER THE
 AMOUNT OF ALL REVENUES SO RECEIVED DURING THE PRIOR MONTH BECAUSE OF THE
 SURCHARGES, INTEREST AND PENALTIES SO IMPOSED. THE AMOUNT OF REVENUES SO
 CERTIFIED SHALL BE PAID OVER BY THE FIFTEENTH AND THE FINAL BUSINESS DAY
 OF EACH SUCCEEDING MONTH FROM SUCH ACCOUNT INTO THE  OPIOID  PREVENTION,
 TREATMENT  AND  RECOVERY ACCOUNT ESTABLISHED PURSUANT TO SECTION NINETY-
 SEVEN-AAAAA OF THE STATE FINANCE LAW.
   7. THE COMMISSIONERS OF EDUCATION AND HEALTH SHALL COOPERATE WITH  THE
 COMMISSIONER IN ADMINISTERING THIS SURCHARGE, INCLUDING SHARING WITH THE
 COMMISSIONER PERTINENT INFORMATION ABOUT ESTABLISHMENTS UPON THE REQUEST
 OF THE COMMISSIONER.
   § 494. RETURNS TO BE SECRET. 1. EXCEPT IN ACCORDANCE WITH PROPER JUDI-
 CIAL  ORDER OR AS IN THIS SECTION OR OTHERWISE PROVIDED BY LAW, IT SHALL
 BE UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPART-

 S. 7509                            58                            A. 9509
 
 MENT, OR ANY OFFICER OR PERSON WHO, PURSUANT TO THIS SECTION, IS PERMIT-
 TED TO INSPECT ANY RETURN OR REPORT OR TO WHOM A COPY, AN ABSTRACT OR  A
 PORTION OF ANY RETURN OR REPORT IS FURNISHED, OR TO WHOM ANY INFORMATION
 CONTAINED IN ANY RETURN OR REPORT IS FURNISHED, OR ANY PERSON ENGAGED OR
 RETAINED  BY  SUCH  DEPARTMENT  ON  AN INDEPENDENT CONTRACT BASIS OR ANY
 PERSON WHO IN ANY MANNER MAY ACQUIRE KNOWLEDGE  OF  THE  CONTENTS  OF  A
 RETURN OR REPORT FILED PURSUANT TO THIS ARTICLE TO DIVULGE OR MAKE KNOWN
 IN  ANY  MANNER  THE  CONTENTS  OR ANY OTHER INFORMATION RELATING TO THE
 BUSINESS OF AN ESTABLISHMENT CONTAINED IN ANY RETURN OR REPORT  REQUIRED
 UNDER  THIS  ARTICLE.  THE  OFFICERS  CHARGED  WITH  THE CUSTODY OF SUCH
 RETURNS OR REPORTS SHALL NOT BE REQUIRED  TO  PRODUCE  ANY  OF  THEM  OR
 EVIDENCE  OF  ANYTHING  CONTAINED IN THEM IN ANY ACTION OR PROCEEDING IN
 ANY COURT, EXCEPT ON BEHALF  OF  THE  STATE,  THE  STATE  DEPARTMENT  OF
 HEALTH,  THE  STATE  DEPARTMENT  OF  EDUCATION OR THE COMMISSIONER IN AN
 ACTION OR PROCEEDING UNDER THE PROVISIONS OF THIS CHAPTER OR  ON  BEHALF
 OF  THE  STATE  OR  THE  COMMISSIONER  IN ANY OTHER ACTION OR PROCEEDING
 INVOLVING THE COLLECTION OF A TAX DUE UNDER THIS CHAPTER  TO  WHICH  THE
 STATE  OR  THE COMMISSIONER IS A PARTY OR A CLAIMANT OR ON BEHALF OF ANY
 PARTY TO ANY ACTION OR PROCEEDING UNDER THE PROVISIONS OF THIS  ARTICLE,
 WHEN  THE RETURNS OR THE REPORTS OR THE FACTS SHOWN THEREBY ARE DIRECTLY
 INVOLVED IN SUCH ACTION OR PROCEEDING, IN ANY OF WHICH EVENTS THE  COURT
 MAY REQUIRE THE PRODUCTION OF, AND MAY ADMIT IN EVIDENCE SO MUCH OF SAID
 RETURNS OR REPORTS OR OF THE FACTS SHOWN THEREBY AS ARE PERTINENT TO THE
 ACTION  OR  PROCEEDING AND NO MORE. NOTHING HEREIN SHALL BE CONSTRUED TO
 PROHIBIT THE COMMISSIONER, IN HIS OR HER DISCRETION, FROM  ALLOWING  THE
 INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED
 UNDER  THIS  ARTICLE, OR FROM PROVIDING ANY INFORMATION CONTAINED IN ANY
 SUCH RETURN OR REPORT, BY OR TO A DULY AUTHORIZED OFFICER OR EMPLOYEE OF
 THE STATE DEPARTMENT OF HEALTH OR THE STATE DEPARTMENT OF EDUCATION; NOR
 TO PROHIBIT THE INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN
 OR REPORT FILED UNDER THIS ARTICLE, OR THE PROVISION OF ANY  INFORMATION
 CONTAINED  THEREIN,  BY OR TO THE ATTORNEY GENERAL OR OTHER LEGAL REPRE-
 SENTATIVES OF THE STATE WHEN AN ACTION SHALL HAVE  BEEN  RECOMMENDED  OR
 COMMENCED  PURSUANT  TO THIS CHAPTER IN WHICH SUCH RETURNS OR REPORTS OR
 THE FACTS SHOWN THEREBY ARE  DIRECTLY  INVOLVED;  NOR  TO  PROHIBIT  THE
 COMMISSIONER  FROM  PROVIDING OR CERTIFYING TO THE DIVISION OF BUDGET OR
 THE COMPTROLLER THE TOTAL NUMBER OF RETURNS OR REPORTS FILED UNDER  THIS
 ARTICLE IN ANY REPORTING PERIOD AND THE TOTAL COLLECTIONS RECEIVED THER-
 EFROM; NOR TO PROHIBIT THE INSPECTION OF THE RETURNS OR REPORTS REQUIRED
 UNDER  THIS  ARTICLE  BY  THE  COMPTROLLER OR DULY DESIGNATED OFFICER OR
 EMPLOYEE OF THE STATE DEPARTMENT OF AUDIT AND CONTROL, FOR  PURPOSES  OF
 THE AUDIT OF A REFUND OF ANY SURCHARGE PAID BY AN ESTABLISHMENT OR OTHER
 PERSON UNDER THIS ARTICLE; NOR TO PROHIBIT THE DELIVERY TO AN ESTABLISH-
 MENT,  OR  A  DULY  AUTHORIZED  REPRESENTATIVE  OF SUCH ESTABLISHMENT, A
 CERTIFIED COPY OF ANY RETURN  OR  REPORT  FILED  BY  SUCH  ESTABLISHMENT
 PURSUANT  TO THIS ARTICLE, NOR TO PROHIBIT THE PUBLICATION OF STATISTICS
 SO CLASSIFIED AS TO PREVENT THE IDENTIFICATION OF PARTICULAR RETURNS  OR
 REPORTS AND THE ITEMS THEREOF.
   2. (A) ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE
 PROVISIONS  OF  SUBDIVISION  ONE OF THIS SECTION SHALL BE DISMISSED FROM
 OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN THIS STATE FOR A
 PERIOD OF FIVE YEARS THEREAFTER.
   (B) A VIOLATION OF THIS ARTICLE SHALL BE  CONSIDERED  A  VIOLATION  OF
 SECRECY PROVISIONS UNDER ARTICLE THIRTY-SEVEN OF THIS CHAPTER.
   § 2. Section 1825 of the tax law, as amended by section 20 of part AAA
 of chapter 59 of the laws of 2017, is amended to read as follows:

 S. 7509                            59                            A. 9509
 
   §  1825.  Violation  of secrecy provisions of the tax law.--Any person
 who violates the provisions of [subdivision (b) of section  twenty-one,]
 subdivision one of section two hundred two, subdivision eight of section
 two  hundred  eleven, subdivision (a) of section three hundred fourteen,
 subdivision  one  or  two  of section four hundred thirty-seven, section
 four hundred eighty-seven, SECTION FOUR HUNDRED NINETY-FOUR, subdivision
 one or two of section five hundred fourteen, subsection (e)  of  section
 six  hundred  ninety-seven, subsection (a) of section nine hundred nine-
 ty-four, subdivision (a) of section eleven  hundred  forty-six,  section
 twelve hundred eighty-seven, section twelve hundred ninety-six, subdivi-
 sion  (a)  of  section  fourteen  hundred  eighteen,  subdivision (a) of
 section fifteen hundred eighteen, subdivision  (a)  of  section  fifteen
 hundred  fifty-five  of  this  chapter,  and  subdivision (e) of section
 11-1797 of the administrative code of the city  of  New  York  shall  be
 guilty of a misdemeanor.
   § 3. The state finance law is amended by adding a new section 97-aaaaa
 to read as follows:
   §  97-AAAAA.  OPIOID  PREVENTION,  TREATMENT  AND RECOVERY ACCOUNT. 1.
 THERE IS HEREBY ESTABLISHED IN THE JOINT  CUSTODY  OF  THE  STATE  COMP-
 TROLLER  AND  THE COMMISSIONER OF TAXATION AND FINANCE AN ACCOUNT OF THE
 MISCELLANEOUS SPECIAL  REVENUE  ACCOUNT  TO  BE  KNOWN  AS  THE  "OPIOID
 PREVENTION, TREATMENT AND RECOVERY ACCOUNT".
   2.  MONEYS  IN  THE  OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT
 SHALL BE KEPT SEPARATE AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS
 IN THE CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION
 AND FINANCE.
   3. THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT SHALL CONSIST
 OF MONEYS APPROPRIATED FOR THE PURPOSE OF SUCH  ACCOUNT,  MONEYS  TRANS-
 FERRED  TO  SUCH  ACCOUNT  PURSUANT  TO LAW, CONTRIBUTIONS CONSISTING OF
 PROMISES OR GRANTS OF ANY MONEY OR PROPERTY OF ANY KIND OR VALUE, OR ANY
 OTHER THING OF VALUE, INCLUDING GRANTS  OR  OTHER  FINANCIAL  ASSISTANCE
 FROM  ANY  AGENCY OF GOVERNMENT AND MONEYS REQUIRED BY THE PROVISIONS OF
 THIS SECTION OR ANY OTHER LAW TO  BE  PAID  INTO  OR  CREDITED  TO  THIS
 ACCOUNT.  THE  ACCOUNT  SHALL  ALSO  CONSIST OF MONEYS RECEIVED FROM ANY
 LITIGATION OR ENFORCEMENT ACTIONS INITIATED  AGAINST  OPIOID  PHARMACEU-
 TICAL MANUFACTURERS, DISTRIBUTORS AND WHOLESALERS.
   4.  MONEYS  OF  THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT,
 WHEN ALLOCATED, SHALL BE AVAILABLE,  SUBJECT  TO  THE  APPROVAL  OF  THE
 DIRECTOR  OF  THE  BUDGET,  TO SUPPORT PROGRAMS OPERATED BY THE NEW YORK
 STATE OFFICE OF ALCOHOLISM AND  SUBSTANCE  ABUSE  SERVICES  OR  AGENCIES
 CERTIFIED,  AUTHORIZED,  APPROVED  OR  OTHERWISE  FUNDED BY THE NEW YORK
 STATE OFFICE OF ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES  TO  PROVIDE
 OPIOID TREATMENT, RECOVERY AND PREVENTION AND EDUCATION SERVICES; AND TO
 PROVIDE  SUPPORT  FOR  THE  PRESCRIPTION  MONITORING PROGRAM REGISTRY IF
 ESTABLISHED.
   5. AT THE REQUEST OF THE BUDGET DIRECTOR, THE STATE COMPTROLLER  SHALL
 TRANSFER  MONEYS  TO  SUPPORT  THE  COSTS OF OPIOID TREATMENT, RECOVERY,
 PREVENTION, EDUCATION SERVICES, AND OTHER  RELATED  PROGRAMS,  FROM  THE
 OPIOID  PREVENTION,  TREATMENT AND RECOVERY ACCOUNT TO ANY OTHER FUND OF
 THE STATE.
   6. NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL OR  SPECIAL  LAW,  NO
 MONEYS  SHALL  BE  AVAILABLE  FROM  THE OPIOID PREVENTION, TREATMENT AND
 RECOVERY ACCOUNT UNTIL A CERTIFICATE OF ALLOCATION  AND  A  SCHEDULE  OF
 AMOUNTS  TO BE AVAILABLE THEREFOR SHALL HAVE BEEN ISSUED BY THE DIRECTOR
 OF THE BUDGET, UPON THE RECOMMENDATION OF THE COMMISSIONER OF THE OFFICE
 OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES, AND A COPY OF  SUCH  CERTIF-

 S. 7509                            60                            A. 9509
 
 ICATE  FILED  WITH  THE  COMPTROLLER, THE CHAIRMAN OF THE SENATE FINANCE
 COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY  WAYS  AND  MEANS  COMMITTEE.
 SUCH CERTIFICATE MAY BE AMENDED FROM TIME TO TIME BY THE DIRECTOR OF THE
 BUDGET,  UPON  THE  RECOMMENDATION  OF THE COMMISSIONER OF THE OFFICE OF
 ALCOHOLISM AND SUBSTANCE ABUSE SERVICES, AND A COPY  OF  SUCH  AMENDMENT
 SHALL  BE FILED WITH THE COMPTROLLER, THE CHAIRMAN OF THE SENATE FINANCE
 COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE.
   7. THE MONEYS, WHEN  ALLOCATED,  SHALL  BE  PAID  OUT  OF  THE  OPIOID
 PREVENTION, TREATMENT AND RECOVERY ACCOUNT, PURSUANT TO SUBDIVISION FOUR
 OF  THIS  SECTION,  AND  SUBJECT  TO THE APPROVAL OF THE DIRECTOR OF THE
 BUDGET, ON THE AUDIT AND WARRANT OF THE COMPTROLLER ON  VOUCHERS  CERTI-
 FIED OR APPROVED BY (A) THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND
 SUBSTANCE ABUSE SERVICES OR HIS OR HER DESIGNEE; OR (B) THE COMMISSIONER
 OF THE DEPARTMENT OF HEALTH OR HIS OR HER DESIGNEE.
   § 4. This act shall take effect July 1, 2018.

                                  PART DD
 
   Section 1. The tax law is amended by adding a new section 1521 to read
 as follows:
   §  1521.  HEALTHCARE INSURANCE WINDFALL PROFIT FEE. (A) IN ADDITION TO
 ALL TAXES, SURCHARGES, AND FEES IMPOSED UNDER THIS CHAPTER,  THE  INSUR-
 ANCE  LAW,  THE FINANCIAL SERVICES LAW, AND THE PUBLIC HEALTH LAW, THERE
 IS HEREBY IMPOSED FOR EACH TAXABLE YEAR BEGINNING AFTER  DECEMBER  THIR-
 TY-FIRST,  TWO  THOUSAND  SEVENTEEN, A FOURTEEN PERCENT SURCHARGE ON THE
 NET UNDERWRITING GAIN FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS
 LOCATED OR RESIDENT WITHIN THIS STATE OF EVERY CORPORATION  (1)  AUTHOR-
 IZED  TO  TRANSACT AN INSURANCE BUSINESS IN THIS STATE, OR (2) THAT IS A
 HEALTH MAINTENANCE ORGANIZATION REQUIRED  TO  OBTAIN  A  CERTIFICATE  OF
 AUTHORITY UNDER ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW.
   (B)  FOR  PURPOSES  OF THIS SECTION, THE TERM "HEALTH INSURANCE" SHALL
 MEAN COMPREHENSIVE HOSPITAL AND  MEDICAL  EXPENSE  INSURANCE  INCLUDING,
 WITHOUT  LIMITATION,  COMPREHENSIVE  COVERAGE ISSUED BY A HEALTH MAINTE-
 NANCE ORGANIZATION, DISABILITY  INCOME  INSURANCE,  ACCIDENT  INSURANCE,
 MEDICARE  SUPPLEMENT  INSURANCE,  SPECIFIED  DISEASE  INSURANCE,  DENTAL
 INSURANCE, VISION INSURANCE, STOP-LOSS INSURANCE, FIXED INDEMNITY INSUR-
 ANCE, AND HOSPITAL INDEMNITY INSURANCE.
   (C)(1) FOR EACH TAXABLE YEAR, THE "NET UNDERWRITING GAIN FROM THE SALE
 OF HEALTH INSURANCE WRITTEN ON RISKS LOCATED  OR  RESIDENT  WITHIN  THIS
 STATE"  SHALL  EQUAL  A  CORPORATION'S  GROSS  RECEIPTS FROM THE SALE OF
 HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT  WITHIN  NEW  YORK
 LESS THE CORPORATION'S CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO THE
 GROSS  RECEIPTS.  THE  COMPUTATION  OF  "GROSS RECEIPTS FROM THE SALE OF
 HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN  NEW  YORK"
 AND "CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO GROSS RECEIPTS" SHALL
 BE MADE PURSUANT TO THE RULES SET FORTH IN REGULATIONS TO BE PROMULGATED
 BY THE SUPERINTENDENT OF FINANCIAL SERVICES.
   (2)  FOR EACH TAXABLE YEAR, THE "NET UNDERWRITING GAIN FROM THE OPERA-
 TION OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE DEPARTMENT
 OF HEALTH" SHALL EQUAL A CORPORATION'S GROSS RECEIPTS FROM THE OPERATION
 OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE  DEPARTMENT  OF
 HEALTH LESS THE CORPORATION'S CLAIMS AND ADMINISTRATIVE EXPENSES RELATED
 TO  SUCH  GROSS  RECEIPTS.  THE  COMPUTATION OF "GROSS RECEIPTS FROM THE
 OPERATION OF A MANAGED  CARE  ORGANIZATION  BUSINESS  REGULATED  BY  THE
 DEPARTMENT OF HEALTH" AND "CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO

 S. 7509                            61                            A. 9509
 
 GROSS  RECEIPTS"  SHALL BE MADE PURSUANT TO THE RULES SET FORTH IN REGU-
 LATIONS TO BE PROMULGATED BY THE SUPERINTENDENT OF FINANCIAL SERVICES.
   (D)  NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SURCHARGE IMPOSED BY
 THIS SECTION SHALL NOT BE DEDUCTIBLE BY A CORPORATION IN DETERMINING ITS
 LIABILITY FOR ANY OTHER TAX, SURCHARGE, OR FEE IMPOSED UNDER ANY LAW.
   (E) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SURCHARGE IMPOSED  BY
 THIS  SECTION  SHALL NOT BE CONSIDERED BY ANY CORPORATION, AND SHALL NOT
 BE DEEMED TO BE AN EXPENSE, COST, OR LIABILITY, FOR PURPOSES  OF  ESTAB-
 LISHING OR SETTING THE RATE TO BE CHARGED FOR ANY HEALTH INSURANCE POLI-
 CY.
   (F)  THE SURCHARGE IMPOSED BY THIS SECTION SHALL BE CALCULATED BY EACH
 CORPORATION ON AN ANNUAL BASIS WITHOUT REGARD TO THE ITEMS  OF  GAIN  OR
 LOSS FROM ANY OTHER PERIOD.
   (G) (1) THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL HAVE THE POWER,
 DUTY  AND  RESPONSIBILITY TO EXAMINE RETURNS OF A CORPORATION FILED WITH
 HIM OR HER PURSUANT TO THIS SECTION AND, TOGETHER WITH ANY OTHER  INFOR-
 MATION  WITHIN  HIS  OR  HER POSSESSION OR THAT MAY COME INTO HIS OR HER
 POSSESSION, TO ASCERTAIN THE CORRECT AMOUNT OF SURCHARGE  IMPOSED  UNDER
 THIS  SECTION  OF  ANY  CORPORATION. FOR THE PURPOSE OF ASCERTAINING THE
 CORRECTNESS OF ANY SUCH SURCHARGE IMPOSED UNDER THIS SECTION OR FOR  THE
 PURPOSE  OF  MAKING  AN  ESTIMATE  OF THE SURCHARGE LIABILITY UNDER THIS
 SECTION OF ANY CORPORATION, THE  SUPERINTENDENT  OF  FINANCIAL  SERVICES
 SHALL  HAVE  THE POWER TO EXAMINE OR CAUSE TO HAVE EXAMINED BY ANY AGENT
 OR REPRESENTATIVE DESIGNATED BY HIM OR HER FOR THAT PURPOSE, ANY  BOOKS,
 PAPERS,  RECORDS  OR  MEMORANDA  BEARING UPON THE MATTERS REQUIRED TO BE
 INCLUDED IN THE RETURN.
   (2) IF THE SUPERINTENDENT OF FINANCIAL SERVICES  ASCERTAINS  THAT  THE
 AMOUNT OF SURCHARGE IMPOSED UNDER THIS SECTION AS SHOWN ON THE RETURN OF
 ANY CORPORATION IS LESS THAN THE AMOUNT OF SURCHARGE DISCLOSED BY HIS OR
 HER EXAMINATION, HE OR SHE SHALL PROPOSE, IN WRITING, TO THE COMMISSION-
 ER  THE  ISSUANCE  OF  A  NOTICE  OF DEFICIENCY FOR THE AMOUNT DUE. IF A
 CORPORATION FAILS TO FILE A RETURN WITH THE SUPERINTENDENT OF  FINANCIAL
 SERVICES  WITHIN  THE  TIME REQUIRED FOR THE FILING OF SUCH RETURN (WITH
 REGARD TO ANY EXTENSION OF TIME FOR THE FILING THEREOF), THE SUPERINTEN-
 DENT OF FINANCIAL SERVICES SHALL MAKE  AN  ESTIMATE  OF  THE  AMOUNT  OF
 SURCHARGE DUE FOR THE PERIOD IN RESPECT TO WHICH SUCH CORPORATION FAILED
 TO FILE THE RETURN. THE ESTIMATE SHALL BE MADE FROM ANY AVAILABLE INFOR-
 MATION WHICH IS IN THE POSSESSION OR MAY COME INTO THE POSSESSION OF THE
 SUPERINTENDENT  OF  FINANCIAL  SERVICES  AND HE OR SHE SHALL PROPOSE, IN
 WRITING, TO THE COMMISSIONER THE ISSUANCE OF A NOTICE OF DEFICIENCY  FOR
 THE  AMOUNT  OF  SUCH ESTIMATED SURCHARGE. ANY PROPOSAL PURSUANT TO THIS
 PARAGRAPH SHALL SET FORTH THE BASIS  THEREOF  AND  THE  DETAILS  OF  ITS
 COMPUTATION.
   (3)  THE  COMMISSIONER SHALL, ON RECEIPT OF A PROPOSAL FROM THE SUPER-
 INTENDENT OF FINANCIAL SERVICES PURSUANT TO PARAGRAPH TWO OF THIS SUBDI-
 VISION, TAKE APPROPRIATE ACTION UNDER THIS CHAPTER  FOR  THE  ASSESSMENT
 AND  COLLECTION  OF  THE AMOUNT OF SURCHARGE, TOGETHER WITH INTEREST AND
 PENALTIES, SHOWN BY SUCH PROPOSAL TO BE  DUE.    THE  SUPERINTENDENT  OF
 FINANCIAL  SERVICES  SHALL  BE  REQUIRED  TO  ASSIST THE COMMISSIONER IN
 DEFENDING THE CORRECTNESS OF THE AMOUNT ASSESSED AT  ANY  CONFERENCE  AT
 THE BUREAU OF CONCILIATION AND MEDIATION SERVICES AND AT THE DIVISION OF
 TAX APPEALS.
   (4) SUBJECT TO THE CONSENT OF THE SUPERINTENDENT OF FINANCIAL SERVICES
 AND  NOTWITHSTANDING  ANY  OTHER  PROVISIONS OF LAW TO THE CONTRARY, THE
 COMMISSIONER MAY DELEGATE SUCH OTHER OF HIS OR  HER  POWERS  AND  DUTIES
 WITH  RESPECT  TO THE ADMINISTRATION AND COLLECTION OF THE TAXES IMPOSED

 S. 7509                            62                            A. 9509
 
 UNDER THIS SECTION TO THE SUPERINTENDENT OF FINANCIAL SERVICES,  AS  THE
 COMMISSIONER  FINDS NECESSARY IN ORDER TO FACILITATE SUCH ADMINISTRATION
 AND COLLECTION.
   (5)  THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL HAVE THE AUTHORITY
 TO ISSUE SUCH RULES AND REGULATIONS THAT ARE NECESSARY TO IMPLEMENT  THE
 PROVISIONS OF THIS SECTION.
   (H)  (1) EVERY CORPORATION SUBJECT TO THE SURCHARGE IN SUBDIVISION (A)
 OF THIS SECTION, SHALL ANNUALLY, ON OR BEFORE THE FIFTEENTH DAY  OF  THE
 THIRD  MONTH  FOLLOWING  THE  CLOSE OF ITS TAXABLE YEAR, TRANSMIT TO THE
 SUPERINTENDENT OF FINANCIAL SERVICES A RETURN IN A  FORM  PRESCRIBED  BY
 THE  SUPERINTENDENT OF FINANCIAL SERVICES SETTING FORTH SUCH INFORMATION
 AS SUCH SUPERINTENDENT MAY PRESCRIBE AND EVERY CORPORATION WHICH  CEASES
 TO BE SUBJECT TO THE SURCHARGE IMPOSED BY THIS SECTION SHALL TRANSMIT TO
 THE  SUPERINTENDENT  OF  FINANCIAL SERVICES A RETURN ON THE DATE OF SUCH
 CESSATION OR AT SUCH OTHER  TIME  AS  SUCH  SUPERINTENDENT  MAY  REQUIRE
 COVERING  EACH YEAR OR PERIOD FOR WHICH NO RETURN WAS THERETOFORE FILED.
 A COPY OF EACH RETURN REQUIRED UNDER  THIS  SUBDIVISION  SHALL  ALSO  BE
 TRANSMITTED  TO  THE  COMMISSIONER  AT OR BEFORE THE TIMES SPECIFIED FOR
 FILING SUCH RETURNS WITH THE COMMISSIONER.
   (2) EVERY CORPORATION SHALL ALSO TRANSMIT SUCH OTHER RETURNS AND  SUCH
 FACTS  AND  INFORMATION  AS THE SUPERINTENDENT OF FINANCIAL SERVICES MAY
 REQUIRE IN THE ADMINISTRATION OF THIS SECTION.
   (3) THE SUPERINTENDENT OF FINANCIAL SERVICES MAY  GRANT  A  REASONABLE
 EXTENSION  OF  TIME  FOR  FILING  RETURNS WHENEVER GOOD CAUSE EXISTS. AN
 AUTOMATIC EXTENSION OF FOUR MONTHS FOR THE FILING OF ITS RETURN SHALL BE
 ALLOWED ANY CORPORATION, IF WITHIN THE TIME PRESCRIBED BY PARAGRAPH  ONE
 OF  THIS  SUBDIVISION, SUCH CORPORATION FILES WITH THE SUPERINTENDENT OF
 FINANCIAL SERVICES AN APPLICATION FOR EXTENSION  IN  SUCH  FORM  AS  THE
 SUPERINTENDENT OF FINANCIAL SERVICES MAY PRESCRIBE AND PAYS ON OR BEFORE
 THE DATE OF SUCH FILING THE AMOUNT PROPERLY ESTIMATED AS ITS SURCHARGE.
   (4)  EVERY  RETURN  SHALL  HAVE ANNEXED THERETO A CERTIFICATION BY THE
 PRESIDENT,  VICE  PRESIDENT,  TREASURER,  ASSISTANT   TREASURER,   CHIEF
 ACCOUNTING  OFFICER OR ANY OTHER OFFICER OF THE CORPORATION DULY AUTHOR-
 IZED SO TO ACT TO THE EFFECT THAT THE STATEMENTS CONTAINED  THEREIN  ARE
 TRUE. THE FACT THAT AN INDIVIDUAL'S NAME IS SIGNED ON A CERTIFICATION OF
 THE RETURN SHALL BE PRIMA FACIE EVIDENCE THAT SUCH INDIVIDUAL IS AUTHOR-
 IZED TO SIGN AND CERTIFY THE RETURN ON BEHALF OF THE CORPORATION.
   (5)  EACH  CORPORATION  SUBJECT TO THE SURCHARGE IN SUBDIVISION (A) OF
 THIS SECTION SHALL FILE A SEPARATE RETURN FOR EACH YEAR SUCH CORPORATION
 IS SUBJECT TO THE SURCHARGE.
   (6) IN CASE  IT  SHALL  APPEAR  TO  THE  SUPERINTENDENT  OF  FINANCIAL
 SERVICES THAT ANY AGREEMENT, UNDERSTANDING OR ARRANGEMENT EXISTS BETWEEN
 THE  CORPORATION AND ANY OTHER ENTITY, PERSON OR FIRM WHEREBY THE ACTIV-
 ITY, BUSINESS, INCOME OR CAPITAL OF THE  CORPORATION  IS  IMPROPERLY  OR
 INACCURATELY  REFLECTED,  THE  SUPERINTENDENT  OF  FINANCIAL SERVICES IS
 AUTHORIZED AND EMPOWERED IN HIS OR HER DISCRETION AND IN SUCH MANNER  AS
 HE OR SHE MAY DETERMINE, TO ADJUST ITEMS OF INCOME, DEDUCTIONS AND CAPI-
 TAL  SO  AS  EQUITABLY  TO DETERMINE THE SURCHARGE. WHERE (A) ANY CORPO-
 RATION CONDUCTS ITS ACTIVITY OR BUSINESS UNDER ANY  AGREEMENT,  ARRANGE-
 MENT OR UNDERSTANDING IN SUCH MANNER AS EITHER DIRECTLY OR INDIRECTLY TO
 BENEFIT  ITS  MEMBERS  OR STOCKHOLDERS, OR ANY OF THEM, OR ANY PERSON OR
 PERSONS DIRECTLY OR INDIRECTLY INTERESTED IN SUCH ACTIVITY OR  BUSINESS,
 BY  ENTERING  INTO  ANY  TRANSACTION  AT  MORE OR LESS THAN A FAIR PRICE
 WHICH, BUT FOR SUCH AGREEMENT, ARRANGEMENT OR UNDERSTANDING, MIGHT  HAVE
 BEEN  PAID  OR  RECEIVED THEREFOR, OR (B) ANY CORPORATION, A SUBSTANTIAL
 PORTION OF WHOSE CAPITAL STOCK IS OWNED EITHER DIRECTLY OR INDIRECTLY BY

 S. 7509                            63                            A. 9509
 
 ANOTHER CORPORATION, ENTERS INTO ANY TRANSACTION WITH SUCH OTHER  CORPO-
 RATION  ON  SUCH TERMS AS TO CREATE AN IMPROPER GAIN OR LOSS AMOUNT, THE
 SUPERINTENDENT OF FINANCIAL SERVICES MAY INCLUDE  IN  THE  CORPORATION'S
 GAIN  SUBJECT  TO  THE  SURCHARGE  THE FAIR AMOUNTS, WHICH, BUT FOR SUCH
 AGREEMENT, ARRANGEMENT OR  UNDERSTANDING,  THE  CORPORATION  MIGHT  HAVE
 DERIVED FROM SUCH TRANSACTION.
   (I)  (1) TO THE EXTENT THE SURCHARGE IMPOSED BY THIS SECTION SHALL NOT
 HAVE BEEN PREVIOUSLY PAID, THE SURCHARGE, OR THE BALANCE THEREOF,  SHALL
 BE  PAYABLE  TO  THE SUPERINTENDENT OF FINANCIAL SERVICES IN FULL AT THE
 TIME THE CORPORATION'S RETURN IS REQUIRED TO BE FILED.
   (2) IF THE CORPORATION, WITHIN THE TIME PRESCRIBED BY SUBDIVISION  (F)
 OF  THIS  SECTION, SHALL HAVE APPLIED FOR AN AUTOMATIC EXTENSION OF TIME
 TO FILE ITS ANNUAL RETURN AND SHALL HAVE PAID TO THE  SUPERINTENDENT  OF
 FINANCIAL  SERVICES  ON  OR BEFORE THE DATE SUCH APPLICATION IS FILED AN
 AMOUNT PROPERLY ESTIMATED AS PROVIDED  BY  SAID  SUBDIVISION,  THE  ONLY
 AMOUNT  PAYABLE  IN  ADDITION  TO THE SURCHARGE SHALL BE INTEREST AT THE
 UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SUBSECTION (E)  OF
 SECTION  ONE  THOUSAND NINETY-SIX OF THIS CHAPTER OR, IF NO RATE IS SET,
 AT THE RATE OF SIX PERCENT PER  ANNUM  UPON  THE  AMOUNT  BY  WHICH  THE
 SURCHARGE,  OR  PORTION THEREOF PAYABLE ON OR BEFORE THE DATE THE RETURN
 WAS REQUIRED TO BE FILED, EXCEEDS THE AMOUNT SO PAID. FOR  THE  PURPOSES
 OF THE PRECEDING SENTENCE:
   (A)  AN  AMOUNT  SO  PAID  SHALL BE DEEMED PROPERLY ESTIMATED IF IT IS
 EITHER (I) NOT LESS THAN NINETY PERCENT  OF  THE  SURCHARGE  AS  FINALLY
 DETERMINED,  OR  (II)  NOT  LESS  THAN THE SURCHARGE SHOWN ON THE CORPO-
 RATION'S RETURN FOR THE PRECEDING TAXABLE YEAR, IF SUCH  PRECEDING  YEAR
 WAS A TAXABLE YEAR OF TWELVE MONTHS; AND
   (B) THE TIME WHEN A RETURN IS REQUIRED TO BE FILED SHALL BE DETERMINED
 WITHOUT REGARD TO ANY EXTENSION OF TIME FOR FILING SUCH RETURN.
   (3)  THE  SUPERINTENDENT  OF FINANCIAL SERVICES MAY GRANT A REASONABLE
 EXTENSION OF TIME FOR PAYMENT OF ANY SURCHARGE IMPOSED BY  THIS  SECTION
 UNDER SUCH CONDITIONS AS HE OR SHE DEEMS JUST AND PROPER.
   (J)  ALL  SURCHARGES,  INTEREST AND PENALTIES COLLECTED OR RECEIVED BY
 THE SUPERINTENDENT OF FINANCIAL SERVICES UNDER  THIS  SECTION  SHALL  BE
 DEPOSITED INTO THE HEALTH CARE REFORM ACT (HCRA) RESOURCES FUND PURSUANT
 TO SECTION NINETY-TWO-DD OF THE STATE FINANCE LAW.
   (K) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY
 TO  THE  PROVISIONS OF THIS SECTION IN THE SAME MANNER AND WITH THE SAME
 FORCE AND EFFECT AS IF THE LANGUAGE OF  SUCH  ARTICLE  TWENTY-SEVEN  HAD
 BEEN  INCORPORATED  IN FULL INTO THIS ARTICLE AND HAD EXPRESSLY REFERRED
 TO THE SURCHARGE UNDER THIS SECTION, EXCEPT TO THE EXTENT THAT ANY  SUCH
 PROVISION  IS EITHER INCONSISTENT WITH A PROVISION OF THIS SECTION OR IS
 NOT RELEVANT TO THIS SECTION. THE SUPERINTENDENT OF  FINANCIAL  SERVICES
 SHALL  HAVE THE SAME POWER AND AUTHORITY THAT THE COMMISSIONER HAS UNDER
 ARTICLE TWENTY-SEVEN OF THIS CHAPTER.
   § 2. This act shall take effect immediately.
 
                                  PART EE
 
   Section 1. Subdivision 1 of Section 208  of  the  racing,  pari-mutuel
 wagering  and  breeding  law,  as  amended by chapter 140 of the laws of
 2008, is amended to read as follows:
   1. In consideration of the franchise and in accordance with its  fran-
 chise  agreement,  the  franchised corporation shall remit to the state,
 each year, no later than April fifth, a franchise fee payment. The fran-
 chise fee shall be calculated and equal to the lesser of  paragraph  (a)

 S. 7509                            64                            A. 9509
 
 or  (b) of this subdivision as follows: (a) adjusted net income, includ-
 ing all sources of audited generally accepted accounting principles  net
 income  as  of December thirty-first (i) plus the amount of depreciation
 and  amortization  for  such  year as set forth on the statement of cash
 flows (ii) less the amount received by the  franchised  corporation  for
 capital  expenditures  and  (iii)  less  principal payments made for the
 repayment of debt; or (b) operating cash which is defined as cash avail-
 able on December thirty-first (i) which  excludes  all  restricted  cash
 accounts,  segregated  accounts  as per audited financial statements and
 cash on hand needed to fund the on-track pari-mutuel operations  through
 the  vault,  (ii)  less  [forty-five]  NINETY days of operating expenses
 pursuant to generally accepted accounting principles which shall  be  an
 average  calculated  by dividing the current year's annual budget by the
 number of days in such year and multiplying that number by  [forty-five]
 NINETY.
   § 2. 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, ONLY  ON  THE  MAIN  TRACK  IN  ITS  CURRENT
 CONFIGURATION, ONLY IF SUCH RACES CONCLUDE BEFORE HALF PAST TEN O' CLOCK
 POST  MERIDIAN,  AND  ONLY  IF SUCH RACES OCCUR ON THURSDAYS, FRIDAYS OR
 SATURDAYS. 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  STAG-
 GERED.
   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.
   § 3. An advisory  committee  shall  be  established  by  the  governor
 comprised  of  individuals with demonstrated interest in the performance
 of thoroughbred and standardbred  race  horses  to  review  the  present
 structure,  operations  and  funding of equine drug testing and research

 S. 7509                            65                            A. 9509
 
 conducted pursuant to article nine of the racing,  pari-mutuel  wagering
 and  breeding  law.  Recommendations shall be delivered to the temporary
 president of the Senate, speaker of the Assembly and Governor by  Decem-
 ber  1, 2018 regarding the future of such research, testing and funding.
 Members of the board shall not be considered policymakers.
   § 4. This act shall take effect immediately; provided,  however,  that
 the  amendments  to  section 203 of the racing, pari-mutuel wagering and
 breeding law made by section two of this act shall expire and be  deemed
 repealed  4 years after the first night of racing conducted after sunset
 pursuant to this act; provided that  the  New  York  Racing  Association
 shall  notify  the  legislative  bill drafting commission of the date of
 such night of racing in order that the commission may maintain an  accu-
 rate  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 offi-
 cers law.
 
                                  PART FF
 
   Section 1. Subdivision 2 of section 254  of  the  racing,  pari-mutuel
 wagering and breeding law is amended by adding a new paragraph h to read
 as follows:
   H. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND TO SUPPORT AND PROMOTE
 THE  ONGOING  CARE  OF  RETIRED HORSES, PROVIDED, HOWEVER, THAT THE FUND
 SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES.
   § 2. Subdivision 1 of section 332 of the racing, pari-mutuel  wagering
 and  breeding  law  is  amended  by  adding a new paragraph j to read as
 follows:
   J. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND TO SUPPORT AND PROMOTE
 THE ONGOING CARE OF RETIRED HORSES, PROVIDED,  HOWEVER,  THAT  THE  FUND
 SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES.
   § 3. This act shall take effect immediately.
 
                                  PART GG
 
   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  OO  of  chapter  59 of the laws of 2017, is amended to read as
 follows:
   (a) Any  racing  association  or  corporation  or  regional  off-track
 betting  corporation,  authorized  to conduct pari-mutuel wagering under
 this chapter, desiring to display the simulcast of horse races on  which
 pari-mutuel  betting shall be permitted in the manner and subject to the
 conditions provided for in this article may apply to the commission  for
 a  license  so to do. Applications for licenses shall be in such form as
 may be prescribed by the commission and shall contain  such  information
 or  other material or evidence as the commission may require. No license
 shall be issued by the commission authorizing the simulcast transmission
 of thoroughbred races from a track located in Suffolk  county.  The  fee
 for  such  licenses shall be five hundred dollars per simulcast facility
 and for account wagering licensees that do not operate either  a  simul-
 cast facility that is open to the public within the state of New York or
 a  licensed racetrack within the state, twenty thousand dollars per year
 payable by the licensee to the commission for deposit into  the  general
 fund.  Except  as  provided  in  this  section, the commission shall not
 approve any application to conduct simulcasting into individual or group

 S. 7509                            66                            A. 9509
 
 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 [eighteen] NINETEEN; 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 [eighteen] NINETEEN; 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 OO of chapter 59 of the laws of 2017,  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 [eighteen] NINETEEN, the amount used exclusively
 for purses to be awarded at races  conducted  by  such  receiving  track
 shall  be computed as follows: of the sums so retained, two and one-half
 percent of the total pools. Such amount shall be increased or  decreased
 in  the  amount  of fifty percent of the difference in total commissions
 determined by comparing the total commissions available after July twen-
 ty-first, nineteen hundred ninety-five to  the  total  commissions  that
 would  have  been  available  to  such track prior to July twenty-first,
 nineteen hundred ninety-five.
   § 3. The opening paragraph of subdivision 1 of  section  1014  of  the
 racing,  pari-mutuel  wagering and breeding law, as amended by section 3

 S. 7509                            67                            A. 9509
 
 of part OO of chapter 59 of the laws of 2017,  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 [eighteen] NINETEEN and on any day regardless of
 whether or not a franchised corporation is conducting a race meeting  in
 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
 two  thousand  [eighteen]  NINETEEN.  On  any  day on which a franchised
 corporation has not scheduled a racing program but a thoroughbred racing
 corporation located within the state is conducting  racing,  every  off-
 track  betting corporation branch office and every simulcasting facility
 licensed in accordance  with  section  one  thousand  seven  (that  have
 entered  into  a  written  agreement with such facility's representative
 horsemen's 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 OO of  chapter  59  of
 the laws of 2017, 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 [eighteen] NINETEEN. 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  OO  of  chapter  59 of the laws of 2017, 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  [eighteen]  NINETEEN. 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 OO of chapter
 59 of the laws of 2017, is amended to read as follows:
   Notwithstanding any other provision of this chapter,  for  the  period
 July  twenty-fifth, two thousand one through September eighth, two thou-
 sand [seventeen] EIGHTEEN, when a franchised corporation is conducting a
 race meeting within the state at Saratoga Race Course,  every  off-track

 S. 7509                            68                            A. 9509
 
 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 OO of chapter 59 of the
 laws of 2017, 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,  [2018]  2019;  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  OO of chapter 59 of the laws of 2017, 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, [2018] 2019; 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
 OO of chapter 59 of the laws of 2017, is amended to read as follows:
   (a) The  franchised  corporation  authorized  under  this  chapter  to
 conduct pari-mutuel betting at a race meeting or races run thereat shall
 distribute  all sums deposited in any pari-mutuel pool to the holders of
 winning tickets therein, provided such tickets be presented for  payment
 before  April  first  of  the year following the year of their purchase,
 less an amount which shall be established and  retained  by  such  fran-
 chised  corporation  of  between  twelve  to seventeen per centum of the
 total deposits in pools resulting from on-track regular bets, and  four-
 teen  to  twenty-one per centum of the total deposits in pools resulting
 from on-track multiple bets and fifteen to twenty-five per centum of the
 total deposits in pools resulting from on-track exotic bets and  fifteen
 to  thirty-six  per centum of the total deposits in pools resulting from
 on-track super exotic bets, plus the breaks. The retention  rate  to  be
 established  is  subject to the prior approval of the gaming commission.

 S. 7509                            69                            A. 9509
 
 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  [eighteen]  NINETEEN,  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
 [eighteen] NINETEEN, such payment  shall  be  seven-tenths  of  one  per
 centum of such pools.
   § 10. This act shall take effect immediately.
 
                                  PART HH
 
   Section  1.  Subdivision 4 of section 97-nnnn of the state finance law
 is REPEALED.
   § 2. Subdivisions 5 and 6 of section 97-nnnn of the state finance  law
 are renumbered subdivisions 4 and 5.
   § 3. This act shall take effect April 1, 2018.
 
                                  PART II

 S. 7509                            70                            A. 9509
 
   Section  1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision
 b of section 1612 of the tax law are REPEALED  and  a  new  subparagraph
 (ii) is added to read as follows:
   (II) LESS A VENDOR'S FEE THE AMOUNT OF WHICH IS TO BE PAID FOR SERVING
 AS A LOTTERY AGENT TO THE TRACK OPERATOR OF A VENDOR TRACK OR THE OPERA-
 TOR  OF  ANY  OTHER VIDEO LOTTERY GAMING FACILITY AUTHORIZED PURSUANT TO
 SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE:
   (A) WHEN A VENDOR TRACK IS LOCATED  WITHIN  DEVELOPMENT  ZONE  ONE  AS
 DEFINED  BY  SECTION  THIRTEEN  HUNDRED  TEN  OF THE RACING, PARI-MUTUEL
 WAGERING AND BREEDING LAW, AT A RATE OF THIRTY-NINE AND ONE-HALF PERCENT
 OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER;
   (B) WHEN A VENDOR TRACK IS LOCATED  WITHIN  DEVELOPMENT  ZONE  TWO  AS
 DEFINED  BY  SECTION  THIRTEEN  HUNDRED  TEN  OF THE RACING, PARI-MUTUEL
 WAGERING AND BREEDING LAW, AT A RATE OF FORTY-THREE AND ONE-HALF PERCENT
 OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER; PROVIDED, HOWEVER, AT A VENDOR  TRACK  LOCATED
 WITHIN  FIFTEEN MILES OF A DESTINATION RESORT GAMING FACILITY AUTHORIZED
 PURSUANT TO ARTICLE THIRTEEN OF THE  RACING,  PARI-MUTUEL  WAGERING  AND
 BREEDING LAW OR THAT IS LOCATED MORE THAN FIFTEEN MILES BUT WITHIN FIFTY
 MILES  OF  A  NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25
 U.S.C. § 2703 (8) SHALL RECEIVE A VENDOR FEE  AT  A  RATE  OF  FIFTY-ONE
 PERCENT  OF  THE  TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT
 FOR PRIZES PURSUANT TO THIS CHAPTER; AND THAT AT A VENDOR TRACK  LOCATED
 WITHIN  FIFTEEN  MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS
 DEFINED IN 25 U.S.C. § 2703 (8) SHALL RECEIVE A VENDOR FEE AT A RATE  OF
 FIFTY-SIX PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER
 PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
   (C)  WHEN  A VIDEO LOTTERY FACILITY IS OPERATED AT AQUEDUCT RACETRACK,
 AT A RATE OF FORTY-SEVEN PERCENT OF THE TOTAL  REVENUE  WAGERED  AT  THE
 VIDEO  LOTTERY  GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS
 CHAPTER; PROVIDED, HOWEVER, UPON 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 ARTICLE  OR
 APRIL  FIRST, TWO THOUSAND NINETEEN, SUCH RATE SHALL BE FIFTY PERCENT OF
 THE TOTAL REVENUE WAGERED AT THE VIDEO  LOTTERY  GAMING  FACILITY  AFTER
 PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
   (D)  WHEN  A VIDEO LOTTERY GAMING FACILITY IS LOCATED IN EITHER NASSAU
 OR SUFFOLK COUNTIES AND IS OPERATED BY A CORPORATION ESTABLISHED  PURSU-
 ANT  TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND
 BREEDING LAW, AT A RATE OF  FORTY-FIVE  PERCENT  OF  THE  TOTAL  REVENUE
 WAGERED  AT  THE  VIDEO  LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER;
   (E) NOTWITHSTANDING ANY PROVISION OF  LAW  TO  THE  CONTRARY,  WHEN  A
 VENDOR  TRACK  IS  LOCATED  WITHIN REGION ONE OR TWO OF DEVELOPMENT ZONE
 TWO, AS SUCH ZONE IS DEFINED IN SECTION  THIRTEEN  HUNDRED  TEN  OF  THE
 RACING,  PARI-MUTUEL  WAGERING  AND  BREEDING  LAW, OR IS LOCATED WITHIN
 REGION SIX OF SUCH DEVELOPMENT ZONE TWO AND IS  LOCATED  WITHIN  ONTARIO
 COUNTY,  SUCH  VENDOR  TRACK  SHALL BE ENTITLED TO RECEIVE AN ADDITIONAL
 COMMISSION. THE ADDITIONAL COMMISSION RECEIVED BY THE VENDOR TRACK SHALL
 BE THE ADJUSTED COMMISSION CALCULATED PURSUANT TO SUBCLAUSE (II) OF THIS
 CLAUSE; PROVIDED, HOWEVER, THE ADDITIONAL COMMISSION SHALL NOT EXCEED AN
 AMOUNT CALCULATED PURSUANT TO SUBCLAUSE (I) OF THIS CLAUSE.
   (I) THE MAXIMUM ADDITIONAL COMMISSION  PAYABLE  FOR  ANY  FISCAL  YEAR
 SHALL  BE  AN  AMOUNT  EQUAL  TO  THE  BASE VENDOR FEE LESS THE ADJUSTED
 CURRENT VENDOR FEE. THE ADJUSTED CURRENT VENDOR FEE IS CALCULATED AS THE

 S. 7509                            71                            A. 9509
 
 VENDOR FEE THAT THE FACILITY WOULD  HAVE  RECEIVED  DURING  THE  CURRENT
 FISCAL  YEAR UNDER THE PAYMENT SCHEDULE ESTABLISHED BY THIS PARAGRAPH AS
 IT EXISTED ON MARCH  THIRTY-FIRST,  TWO  THOUSAND  SEVENTEEN.  THE  BASE
 VENDOR  FEE  IS  CALCULATED AS THE VENDOR FEE THAT THE FACILITY RECEIVED
 DURING THE TWELVE-MONTH PERIOD IMMEDIATELY PRECEDING THE  OPENING  OF  A
 GAMING FACILITY IN THE SAME REGION AS THE VENDOR TRACK. FOR THE PURPOSES
 OF  THIS  CALCULATION,  A  VENDOR  FEE  SHALL  EXCLUDE ANY DISTRIBUTIONS
 REQUIRED BY PARAGRAPH TWO OF THIS SUBDIVISION. FOR THE PURPOSES OF  THIS
 CLAUSE,  SENECA  AND WAYNE COUNTIES SHALL BE DEEMED TO BE LOCATED WITHIN
 REGION SIX OF DEVELOPMENT ZONE TWO.
   (II) THE ADJUSTED COMMISSION IS A  PERCENTAGE  OF  THE  TOTAL  REVENUE
 WAGERED  AT  THE  VENDOR  TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS
 CHAPTER. THAT PERCENTAGE IS CALCULATED BY SUBTRACTING THE EFFECTIVE  TAX
 RATE  ON  ALL  GROSS GAMING REVENUE PAID BY A GAMING FACILITY WITHIN THE
 SAME REGION AS THE VENDOR  TRACK  FROM  THE  EDUCATION  PERCENTAGE.  THE
 EDUCATION PERCENTAGE IS NINETY PERCENT LESS THE PERCENTAGE OF THE VENDOR
 TRACK'S  VENDOR FEE. FOR PURPOSES OF THIS CLAUSE, SENECA AND WAYNE COUN-
 TIES SHALL BE DEEMED TO BE LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE
 TWO.
   (III) THE ADDITIONAL COMMISSION PAID  PURSUANT  TO  THIS  SUBPARAGRAPH
 SHALL  COMMENCE WITH THE STATE FISCAL YEAR ENDING ON MARCH THIRTY-FIRST,
 TWO THOUSAND EIGHTEEN AND SHALL BE PAID TO A VENDOR TRACK NO LATER  THAN
 SIXTY DAYS AFTER THE CLOSE OF THE FISCAL YEAR. THE ADDITIONAL COMMISSION
 AUTHORIZED  BY THIS CLAUSE SHALL ONLY BE APPLIED TO REVENUE WAGERED AT A
 VENDOR TRACK WHILE A GAMING FACILITY IN THE SAME REGION AS  THAT  VENDOR
 TRACK  IS OPEN AND OPERATING PURSUANT TO AN OPERATION CERTIFICATE ISSUED
 PURSUANT TO SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING,  PARI-MU-
 TUEL WAGERING AND BREEDING LAW.
   (F)  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, ANY OPERA-
 TORS OF A VENDOR TRACK OR THE  OPERATORS  OF  ANY  OTHER  VIDEO  LOTTERY
 GAMING FACILITY ELIGIBLE TO RECEIVE A CAPITAL AWARD AS OF DECEMBER THIR-
 TY-FIRST,  TWO  THOUSAND  SEVENTEEN  SHALL DEPOSIT FROM THEIR VENDOR FEE
 INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO FOUR PERCENT OF  THE  FIRST
 SIXTY-TWO  MILLION  FIVE  HUNDRED THOUSAND DOLLARS OF REVENUE WAGERED AT
 THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER TO  BE
 USED  EXCLUSIVELY  FOR  CAPITAL  INVESTMENTS, EXCEPT FOR AQUEDUCT, WHICH
 SHALL DEPOSIT INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO  ONE  PERCENT
 OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING 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
 ARTICLE  OR  APRIL  FIRST, TWO THOUSAND NINETEEN, WHEN AT SUCH TIME FOUR
 PERCENT OF ALL REVENUE WAGERED AT  THE  VIDEO  LOTTERY  GAMING  FACILITY
 AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE DEPOSITED INTO
 A  SEGREGATED  ACCOUNT  FOR CAPITAL INVESTMENTS. VENDOR TRACKS AND VIDEO
 LOTTERY GAMING FACILITIES SHALL  BE  PERMITTED  TO  WITHDRAW  FUNDS  FOR
 PROJECTS  APPROVED  BY  THE  COMMISSION TO IMPROVE THE FACILITIES OF THE
 VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY WHICH ENHANCE OR  MAINTAIN
 THE  VIDEO LOTTERY GAMING FACILITY INCLUDING, BUT NOT LIMITED TO HOTELS,
 OTHER LODGING FACILITIES, ENTERTAINMENT FACILITIES,  RETAIL  FACILITIES,
 DINING FACILITIES, EVENTS ARENAS, PARKING GARAGES AND OTHER IMPROVEMENTS
 AND  AMENITIES  CUSTOMARY  TO  A GAMING FACILITY, PROVIDED, HOWEVER, THE
 VENDOR TRACKS AND VIDEO LOTTERY GAMING FACILITIES SHALL BE PERMITTED  TO
 WITHDRAW  FUNDS  FOR  UNREIMBURSED  CAPITAL AWARDS APPROVED PRIOR TO THE
 EFFECTIVE DATE OF THIS SUBPARAGRAPH. ANY PROCEEDS FROM  THE  DIVESTITURE
 OF  ANY ASSETS ACQUIRED THROUGH THESE CAPITAL FUNDS OR ANY PRIOR CAPITAL

 S. 7509                            72                            A. 9509
 
 AWARD MUST BE DEPOSITED INTO THIS SEGREGATED ACCOUNT, PROVIDED  THAT  IF
 THE  VENDOR  TRACK  OR  VIDEO LOTTERY GAMING FACILITY CEASES USE OF SUCH
 ASSET FOR GAMING PURPOSES OR TRANSFERS THE ASSET  TO  A  RELATED  PARTY,
 SUCH  VENDOR  TRACK  OR  VIDEO  LOTTERY GAMING FACILITY SHALL DEPOSIT AN
 AMOUNT EQUAL TO THE FAIR MARKET VALUE OF THAT ASSET INTO THE ACCOUNT. IN
 THE EVENT A VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY CEASES  GAMING
 OPERATIONS, ANY BALANCE IN THE ACCOUNT ALONG WITH AN AMOUNT EQUAL TO THE
 VALUE  OF ALL REMAINING ASSETS ACQUIRED THROUGH THIS FUND OR PRIOR CAPI-
 TAL AWARDS SHALL BE RETURNED TO THE STATE FOR  DEPOSIT  INTO  THE  STATE
 LOTTERY  FUND FOR EDUCATION AID, EXCEPT FOR AQUEDUCT, WHICH SHALL RETURN
 TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR  EDUCATION  AID
 ALL AMOUNTS IN EXCESS OF THE AMOUNT NEEDED TO FUND A PROJECT PURSUANT TO
 AN  AGREEMENT WITH THE OPERATOR TO CONSTRUCT AN EXPANSION OF THE FACILI-
 TY, HOTEL, AND CONVENTION AND EXHIBITION SPACE REQUIRING A MINIMUM CAPI-
 TAL INVESTMENT OF THREE  HUNDRED  MILLION  DOLLARS  AND  ANY  SUBSEQUENT
 AMENDMENTS  TO SUCH AGREEMENT. THE COMPTROLLER OR HIS LEGALLY AUTHORIZED
 REPRESENTATIVE IS AUTHORIZED TO AUDIT ANY AND ALL EXPENDITURES MADE  OUT
 OF  THESE  SEGREGATED CAPITAL ACCOUNTS. NOTWITHSTANDING THE PRECEDING, A
 VENDOR TRACK LOCATED IN ONTARIO COUNTY MAY WITHDRAW UP  TO  TWO  MILLION
 DOLLARS  FROM THIS ACCOUNT FOR THE PURPOSE OF CONSTRUCTING A TURF COURSE
 AT THE VENDOR TRACK.
   (G) NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRARY,  FREE  PLAY
 ALLOWANCE  CREDITS  AUTHORIZED BY THE DIVISION PURSUANT TO SUBDIVISION F
 OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF  THIS  ARTICLE  SHALL  NOT  BE
 INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY
 GAMES,  THE TOTAL AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR FEES
 PAYABLE TO THE OPERATORS OF VIDEO LOTTERY GAMING FACILITIES, FEES  PAYA-
 BLE  TO  THE  DIVISION'S  VIDEO LOTTERY GAMING EQUIPMENT CONTRACTORS, OR
 RACING SUPPORT PAYMENTS.
   (H) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERATOR
 OF A VENDOR TRACK OR THE OPERATOR OF  ANY  OTHER  VIDEO  LOTTERY  GAMING
 FACILITY  SHALL  FUND  A  MARKETING  AND  PROMOTION  PROGRAM  OUT OF THE
 VENDOR'S FEE. EACH OPERATOR SHALL SUBMIT AN ANNUAL  MARKETING  PLAN  FOR
 THE  REVIEW  AND APPROVAL OF THE COMMISSION AND ANY OTHER REQUIRED DOCU-
 MENTS DETAILING PROMOTIONAL ACTIVITIES AS PRESCRIBED BY THE  COMMISSION.
 THE  COMMISSION  SHALL  HAVE  THE  RIGHT  TO REJECT ANY ADVERTISEMENT OR
 PROMOTION THAT DOES NOT PROPERLY REPRESENT THE MISSION OR  INTERESTS  OF
 THE LOTTERY OR ITS PROGRAMS.
   (I)  NOTWITHSTANDING  CLAUSE  (F) OF THIS SUBPARAGRAPH, THE COMMISSION
 SHALL BE ABLE TO AUTHORIZE A VENDOR TRACK LOCATED WITHIN ONEIDA  COUNTY,
 WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, AND
 WHO  HAS  MAINTAINED  AT  LEAST  NINETY  PERCENT OF FULL-TIME EQUIVALENT
 EMPLOYEES AS THEY EMPLOYED IN THE YEAR TWO THOUSAND SIXTEEN, TO WITHDRAW
 FUNDS FROM THE SEGREGATED ACCOUNT ESTABLISHED  IN  CLAUSE  (F)  OF  THIS
 SUBPARAGRAPH  UP TO AN AMOUNT EQUAL TO FOUR PERCENT OF THE TOTAL REVENUE
 WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR  PRIZES  PURSUANT  TO  THIS
 CHAPTER EACH YEAR, FOR OPERATIONS.
   § 2. This act shall take effect immediately; provided, however, clause
 (I) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612
 of  the  tax law as added by section one of this act shall expire and be
 deemed repealed June 29, 2019.
   § 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

 S. 7509                            73                            A. 9509
 
 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 II of this act shall be
 as specifically set forth in the last section of such Parts.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 7509--A                                            A. 9509--A
 
                       S E N A T E - A S S E M B L Y
 
                             January 18, 2018
                                ___________
 
 IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
   cle seven of the Constitution -- read twice and ordered  printed,  and
   when  printed to be committed to the Committee on Finance -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 IN ASSEMBLY -- A BUDGET BILL, submitted  by  the  Governor  pursuant  to
   article  seven  of  the  Constitution -- read once and referred to the
   Committee on Ways and Means --  committee  discharged,  bill  amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN  ACT  to  amend  the real property tax law, in relation to the annual
   growth in STAR benefits (Part A); to amend the real property tax  law,
   in  relation to making the STAR income verification program mandatory;
   to amend the tax law, in relation to the  calculation  of  income  for
   basic STAR purposes; to repeal subparagraphs (v) and (vi) of paragraph
   (b)  of  subdivision  4,  paragraphs  (b) and (c) of subdivision 5 and
   paragraph (c) of subdivision 6 of section 425 of the real property tax
   law relating to the school tax relief (STAR) exemption; and to  repeal
   section  171-o  of  the  tax law relating to income verification for a
   city with a population of one million or more (Part B); to  amend  the
   real property law, in relation to real property transfer reports (Part
   C); to amend the real property law, in relation to reports of manufac-
   tured  housing  park  owners  (Part D); to amend the general municipal
   law, the education law, the state finance law, the real  property  tax
   law  and  the  tax law, in relation to making technical corrections to
   various statutes impacting property taxes; and  to  repeal  subsection
   (bbb) of section 606 of the tax law, section 3-d of the general munic-
   ipal  law  and  section  2023-b of the education law, relating thereto
   (Part E); to amend the real property tax law, in relation  to  taxable
   state  land  (Part F); to amend the real property tax law, in relation
   to assessment ceilings; and to amend chapter 475 of the laws of  2013,
   amending the real property tax law relating to assessment ceilings for
   local public utility mass real property, in relation to the effective-
   ness  thereof  (Part  G);  to amend the tax law and the administrative
   code of the city of New York, in relation to extending the statute  of
   limitations  for  assessing  tax on amended returns (Part H); to amend
   the tax law, in relation to  providing  for  employee  wage  reporting
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD12674-04-8

 S. 7509--A                          2                         A. 9509--A
 
   consistency  between  the  department  of taxation and finance and the
   department of labor (Part I); to amend the tax  law,  in  relation  to
   sales and compensating use taxes imposed on food and beverages sold by
   restaurants and similar establishments (Part J); to amend the tax law,
   in  relation  to  allowing  sharing  with  the comptroller information
   regarding unwarranted fixed and final debt  (Part  K);  to  amend  the
   social services law, in relation to the disclosure of certain informa-
   tion  relating  to a person receiving public assistance to the commis-
   sioner of taxation and finance (Part L); to  amend  the  tax  law,  in
   relation  to  establishing a conditional tax on carried interest (Part
   M); to amend the tax law, in relation to permitting  the  commissioner
   of  taxation  and  finance to seek judicial review of decisions of the
   tax appeals tribunal (Part N); to amend the tax law and  the  adminis-
   trative code of the city of New York, in relation to the definition of
   resident  for  tax  purposes  of  the personal income tax (Part O); to
   amend the tax law, in relation to the empire state child credit  (Part
   P);  to amend the tax law, in relation to extending the hire a veteran
   credit for an additional two years (Part Q); to amend  the  labor  law
   and  the  tax  law,  in  relation to enhancing the New York youth jobs
   program (Part R); to amend the tax law, in relation to  the  temporary
   deferral  of  certain  tax  credits (Part S); to amend the tax law, in
   relation to extending the real estate transfer tax statute of  limita-
   tions for refunds from two to three years and providing for consistent
   joint  liability  treatment  within the real estate transfer tax (Part
   T); to amend the tax law, in relation to the taxation of cigars  (Part
   U);  to  amend  the tax law and the administrative code of the city of
   New York, in relation to sales and  use  taxes  on  gas  and  electric
   service;  and repealing section 1105-C of the tax law relating thereto
   (Part V); to amend the tax law, in relation to  exempting  from  sales
   and  use  tax  certain veterinary drugs and medicines and removing the
   refund/credit therefor (Part W); to amend the tax law, in relation  to
   providing  relief  from  sales tax liability for certain partners of a
   limited partnership and members of a limited liability  company  (Part
   X);  to  amend the tax law, in relation to exempting items of food and
   drink when sold from certain  vending  machines  from  the  sales  and
   compensating  use  tax  (Part Y); to amend part A of chapter 61 of the
   laws of 2017, amending the tax law relating to the imposition of sales
   and compensating use taxes in certain counties, in relation to extend-
   ing the revenue distribution provisions for the  additional  rates  of
   sales  and  use  tax  of Genesee, Monroe, Onondaga and Orange counties
   (Part Z); to amend the tax law, in relation to  imposing  an  internet
   fairness  conformity  tax  and  requiring  non-collecting  sellers  to
   provide specified information  to  New  York  purchasers  and  to  the
   commissioner  of taxation and finance (Part AA); to amend the tax law,
   in relation to imposing a health tax on vapor products (Part  BB);  to
   amend the tax law, in relation to the imposition of an opioid epidemic
   surcharge;  and  to amend the state finance law, in relation to estab-
   lishing the opioid prevention, treatment and  recovery  account  (Part
   CC);  to  amend  the tax law, in relation to establishing a healthcare
   insurance windfall profit fee (Part DD); to amend the racing, pari-mu-
   tuel wagering and breeding law, in relation to adjusting the franchise
   payment, and authorizing  night  races  under  certain  circumstances;
   creating  an equine drug testing advisory committee; and providing for
   the repeal of certain provisions upon  the  expiration  thereof  (Part
   EE);  to  amend  the racing, pari-mutuel wagering and breeding law, in
   relation to providing funds for the aftercare of retired horses  (Part

 S. 7509--A                          3                         A. 9509--A
 
   FF);  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  GG);  to  amend  the state finance law, in
   relation to the commercial gaming revenue fund; and to repeal subdivi-
   sion 4 of section 97-nnnn of the state finance law  relating  to  base
   year  gaming  revenue (Part HH); and to amend the tax law, in relation
   to commissions paid to the operator of a video  lottery  facility;  to
   repeal  certain provisions of such law relating thereto; providing for
   the repeal of certain provisions upon expiration thereof (Part II); to
   amend the tax law and the administrative code of the city of New York,
   in relation to addressing changes made to the internal revenue code by
   Public Law 115-97 (Part JJ); to amend the  tax  law,  in  relation  to
   federal  gross  income  and federal deductions allowed pursuant to the
   internal revenue code (Part KK); to amend the state  finance  law,  in
   relation  to  establishing  the  charitable  gifts  trust fund and the
   health charitable account, and the elementary and secondary  education
   charitable  account;  to amend the tax law, in relation to credits for
   contributions to accounts in the charitable gifts trust fund; to amend
   the education law and  the  general  municipal  law,  in  relation  to
   authorizing  school districts, counties and New York city to establish
   charitable funds; and to amend the real property tax law, in  relation
   to  authorizing such localities to provide a credit against real prop-
   erty taxes for such contributions (Part LL); and to amend the tax  law
   and  state  finance  law, in relation to the imposition of an employer
   compensation expense tax (Part MM)
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act enacts into law major components of legislation
 which are necessary to implement the state fiscal plan for the 2018-2019
 state fiscal year. Each component is  wholly  contained  within  a  Part
 identified as Parts A through MM. The effective date for each particular
 provision contained within such Part is set forth in the last section of
 such Part. Any provision in any section contained within a Part, includ-
 ing the effective date of the Part, which makes a reference to a section
 "of  this  act", when used in connection with that particular component,
 shall be deemed to mean and refer to the corresponding  section  of  the
 Part  in  which  it  is  found. Section three of this act sets forth the
 general effective date of this act.
 
                                  PART A
 
   Section 1. 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:

 S. 7509--A                          4                         A. 9509--A
 
   (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  SEVENTEEN-TWO  THOUSAND  EIGHTEEN  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 EIGHTEEN-TWO THOUSAND NINETEEN 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.
 
                                  PART B
 
   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 NINETEEN, 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] NINETEEN,
 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

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 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
 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.  IF A TAXPAYER IS DISSATISFIED WITH  THE  DEPART-
 MENT'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 DETERMI-
 NATION. 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, 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.

 S. 7509--A                          6                         A. 9509--A
 
   § 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
 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.

 S. 7509--A                          7                         A. 9509--A
 
   § 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.
   (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

 S. 7509--A                          8                         A. 9509--A
 
 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
 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 NINETEEN, 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 2019 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

 S. 7509--A                          9                         A. 9509--A
 
 a form for assessors to use, at their option, when making this notifica-
 tion.
   § 12. This act shall take effect immediately.
 
                                  PART C
 
   Section  1. Subdivision 1-e of section 333 of the real property law is
 amended by adding two new paragraphs ix and x to read as follows:
   IX. WHENEVER THERE HAS BEEN A TRANSFER OR ACQUISITION OF  A  SHARE  OR
 SHARES  IN  A  COOPERATIVE HOUSING CORPORATION, AND SUCH SHARE OR SHARES
 COME WITH A RIGHT TO OCCUPY A UNIT  OR  APARTMENT  LOCATED  IN  PROPERTY
 OWNED BY SUCH CORPORATION, A TRANSFER REPORT MUST BE FILED BY THE TRANS-
 FEREE  OR  TRANSFEREES  DIRECTLY  WITH  THE  DEPARTMENT  OF TAXATION AND
 FINANCE,  REGARDLESS  OF  WHETHER  A  DEED  IS  PREPARED,  DELIVERED  OR
 RECORDED, AS SET FORTH IN THIS PARAGRAPH. THE FEE IMPOSED BY SUBDIVISION
 THREE OF THIS SECTION SHALL NOT APPLY TO TRANSFER REPORTS FILED DIRECTLY
 WITH  THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO THIS PARAGRAPH.
 SUCH REPORT SHALL BE IN A FORM PRESCRIBED BY THE COMMISSIONER  OF  TAXA-
 TION  AND  FINANCE, MUST CONTAIN THE INFORMATION REQUIRED TO BE INCLUDED
 BY THIS SUBDIVISION, AND IN ADDITION, MUST SPECIFY THE NUMBER OF  SHARES
 BEING TRANSFERRED OR ACQUIRED. WHEN A REAL ESTATE TRANSFER TAX RETURN IS
 FILED  WITH  SUCH COMMISSIONER PURSUANT TO SECTION FOURTEEN HUNDRED NINE
 OF THE TAX LAW IN RELATION TO SUCH PROPERTY, THE REPORT REQUIRED BY THIS
 PARAGRAPH SHALL BE FILED CONCURRENTLY THEREWITH, BUT IN NO  EVENT  SHALL
 THE  REPORT  REQUIRED  BY  THIS PARAGRAPH BE DEEMED TO BE A PART OF SUCH
 REAL ESTATE TRANSFER TAX RETURN.
   X. WHENEVER THERE HAS BEEN A TRANSFER OR ACQUISITION OF A  CONTROLLING
 INTEREST  IN  AN  ENTITY  WITH  AN INTEREST IN REAL PROPERTY, A TRANSFER
 REPORT MUST BE FILED BY THE TRANSFEREE OR TRANSFEREES DIRECTLY WITH  THE
 DEPARTMENT  OF  TAXATION  AND  FINANCE,  REGARDLESS OF WHETHER A DEED IS
 PREPARED, DELIVERED OR RECORDED, AS SET FORTH IN THIS PARAGRAPH. THE FEE
 IMPOSED BY SUBDIVISION THREE OF THIS SECTION SHALL NOT APPLY TO TRANSFER
 REPORTS FILED DIRECTLY WITH  THE  DEPARTMENT  OF  TAXATION  AND  FINANCE
 PURSUANT TO THIS PARAGRAPH. SUCH REPORT SHALL BE IN A FORM PRESCRIBED BY
 THE  COMMISSIONER  OF TAXATION AND FINANCE, MUST CONTAIN THE INFORMATION
 REQUIRED TO BE INCLUDED BY THIS SUBDIVISION, AND IN ADDITION, MUST SPEC-
 IFY THE PERCENTAGE  OF  THE  OWNERSHIP  INTEREST  BEING  TRANSFERRED  OR
 ACQUIRED. THE TRANSFER REPORT SHALL INDICATE THE PERCENTAGE OF THE TRAN-
 SACTION  THAT  IS  EXEMPT  FROM  THE  REAL ESTATE TRANSFER TAX AS A MERE
 CHANGE IN IDENTITY OR FORM OF OWNERSHIP OR ORGANIZATION WHERE  THERE  IS
 NO  CHANGE IN BENEFICIAL OWNERSHIP PURSUANT TO PARAGRAPH SIX OF SUBDIVI-
 SION (B) OF SECTION FOURTEEN HUNDRED FIVE OF THE TAX LAW, IF ANY.   WHEN
 A REAL ESTATE TRANSFER TAX RETURN IS FILED WITH SUCH COMMISSIONER PURSU-
 ANT  TO SECTION FOURTEEN HUNDRED NINE OF THE TAX LAW IN RELATION TO SUCH
 PROPERTY, THE REPORT REQUIRED BY THIS PARAGRAPH SHALL BE  FILED  CONCUR-
 RENTLY  THEREWITH,  BUT  IN  NO  EVENT SHALL THE REPORT REQUIRED BY THIS
 PARAGRAPH BE DEEMED TO BE A  PART  OF  SUCH  REAL  ESTATE  TRANSFER  TAX
 RETURN. FOR PURPOSES OF THIS PARAGRAPH, THE TERMS "CONTROLLING INTEREST"
 AND "INTEREST IN REAL PROPERTY" SHALL HAVE THE SAME MEANING AS SET FORTH
 IN  SECTION FOURTEEN HUNDRED ONE OF THE TAX LAW, PROVIDED, HOWEVER, THAT
 THE TERM "INTEREST IN REAL PROPERTY" SHALL BE LIMITED  TO  INTERESTS  IN
 REAL  PROPERTY  SUBJECT  TO  REAL PROPERTY TAX ASSESSMENT SUCH AS LANDS,
 BUILDINGS, STRUCTURES, AND OTHER IMPROVEMENTS,  AND  SHALL  NOT  INCLUDE
 DEVELOPMENT RIGHTS, AIR SPACE, OR AIR RIGHTS.
   §  2.  This  act  shall take effect January 1, 2019 and shall apply to
 transfers and acquisitions occurring on and after such date.

 S. 7509--A                         10                         A. 9509--A
 
                                  PART D
 
   Section  1.  Subdivision v of section 233 of the real property law, as
 amended by chapter 566 of the laws  of  1996,  is  amended  to  read  as
 follows:
   v.  1.  On  and  after  April first, nineteen hundred eighty-nine, the
 commissioner of housing and community renewal shall have the  power  and
 duty  to  enforce  and  ensure  compliance  with  the provisions of this
 section. However, the commissioner shall not have the power or  duty  to
 enforce  manufactured  home park rules and regulations established under
 subdivision f of this section.
   2. On or before January  first,  nineteen  hundred  eighty-nine,  each
 manufactured  home  park  owner  or  operator  shall file a registration
 statement with the commissioner and  shall  thereafter  file  an  annual
 registration  statement  on  or  before January first of each succeeding
 year, UP TO AND INCLUDING TWO THOUSAND EIGHTEEN. THEREAFTER, EACH  MANU-
 FACTURED  HOME  PARK OWNER OR OPERATOR SHALL FILE QUARTERLY REGISTRATION
 STATEMENTS WITH THE COMMISSIONER NO LATER THAN TWENTY-ONE DAYS AFTER THE
 END OF EACH CALENDAR QUARTER. The  commissioner,  by  regulation,  shall
 provide  that such registration statement shall include [only] the names
 of all persons owning an interest in the park, the names of all  tenants
 of the park, all services provided by the park owner to the tenants, and
 SUCH OTHER INFORMATION AS THE COMMISSIONER SHALL PRESCRIBE BY REGULATION
 AFTER  CONSULTATION  WITH  THE  COMMISSIONER  OF  TAXATION  AND FINANCE;
 PROVIDED THAT IN THE CASE OF A  REGISTRATION  STATEMENT  FOR  THE  FIRST
 CALENDAR  QUARTER OF A YEAR, SUCH STATEMENT SHALL ALSO INCLUDE a copy of
 all current manufactured home park rules and  regulations.  THE  COMMIS-
 SIONER  SHALL  PROVIDE  THE  COMMISSIONER OF TAXATION AND FINANCE WITH A
 COMPLETE COPY OF EACH QUARTERLY REPORT NO LATER THAN FIFTEEN DAYS  AFTER
 THE RECEIPT THEREOF.
   3. Whenever there shall be a violation of this section, an application
 may  be made by the commissioner of housing and community renewal in the
 name of the people of the state of New York to a court or justice having
 jurisdiction by a special proceeding to issue an  injunction,  and  upon
 notice  to  the  defendant  of  not  less  than five days, to enjoin and
 restrain the continuance of such violation; and if it  shall  appear  to
 the  satisfaction  of  the  court  or justice that the defendant has, in
 fact, violated this section, an injunction may be issued by  such  court
 or  justice,  enjoining  and  restraining any further violation and with
 respect to this subdivision, directing  the  filing  of  a  registration
 statement.  In any such proceeding, the court may make allowances to the
 commissioner of housing and community renewal of a sum not exceeding two
 thousand dollars against each defendant, and direct restitution.   When-
 ever  the  court  shall  determine  that a violation of this section has
 occurred, the court may impose a civil penalty  of  not  more  than  one
 thousand  five hundred dollars for each violation. Such penalty shall be
 deposited in the manufactured home cooperative fund, created pursuant to
 section fifty-nine-h of the private housing finance law.  In  connection
 with  any  such  proposed  application,  the commissioner of housing and
 community renewal is authorized to take proof and make  a  determination
 of  the  relevant  facts  and  to issue subpoenas in accordance with the
 civil practice law and rules. The provisions of this  subdivision  shall
 not impair the rights granted under subdivision u of this section.
   § 2. This act shall take effect immediately.
 
                                  PART E

 S. 7509--A                         11                         A. 9509--A

   Section 1. Subsection (bbb) of section 606 of the tax law is REPEALED.
   § 1-a. Section 3-d of the general municipal law is REPEALED.
   § 1-b. Section 2023-b of the education law is REPEALED.
   §  2. The general municipal law is amended by adding a new section 3-d
 to read as follows:
   § 3-D. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT.  1.  UPON  THE
 ADOPTION  OF  THE BUDGET OF A LOCAL GOVERNMENT UNIT, THE CHIEF EXECUTIVE
 OFFICER OR BUDGET OFFICER OF SUCH LOCAL GOVERNMENT UNIT SHALL CERTIFY TO
 THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE  THAT
 THE  BUDGET  SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT PRESCRIBED IN
 SECTION THREE-C OF THIS ARTICLE AND, IF THE GOVERNING BODY OF THE  LOCAL
 GOVERNMENT  UNIT  DID ENACT A LOCAL LAW OR APPROVE A RESOLUTION TO OVER-
 RIDE THE TAX LEVY LIMIT, THAT SUCH LOCAL LAW OR  RESOLUTION  WAS  SUBSE-
 QUENTLY  REPEALED. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND MANNER
 PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSION-
 ER OF TAXATION AND FINANCE.
   2. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, IF  SUCH  A  CERTIF-
 ICATION  HAS  BEEN  MADE AND THE ACTUAL TAX LEVY OF THE LOCAL GOVERNMENT
 UNIT EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT  SHALL  BE
 PLACED  IN  RESERVE AND USED IN THE MANNER PRESCRIBED BY SUBDIVISION SIX
 OF SECTION THREE-C OF THIS ARTICLE, EVEN IF A TAX LEVY IN EXCESS OF  THE
 TAX  LEVY  LIMIT HAD BEEN AUTHORIZED FOR THE APPLICABLE FISCAL YEAR BY A
 DULY ADOPTED LOCAL LAW OR RESOLUTION.
   3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,  EVERY  LOCAL
 GOVERNMENT  UNIT  SHALL  REPORT BOTH ITS PROPOSED BUDGET AND ITS ADOPTED
 BUDGET TO THE OFFICE OF THE STATE COMPTROLLER AT THE  TIME  AND  IN  THE
 MANNER  AS  HE OR SHE MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET HAS BEEN
 OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDIVISION.
   § 3. The education law is amended by adding a new  section  2023-b  to
 read as follows:
   §  2023-B.  CERTIFICATION  OF COMPLIANCE WITH TAX LEVY LIMIT. 1.  UPON
 THE ADOPTION OF THE BUDGET OF AN ELIGIBLE  SCHOOL  DISTRICT,  THE  CHIEF
 EXECUTIVE  OFFICER  OF  SUCH  SCHOOL DISTRICT SHALL CERTIFY TO THE STATE
 COMPTROLLER, THE COMMISSIONER OF TAXATION AND FINANCE  AND  THE  COMMIS-
 SIONER  THAT  THE  BUDGET  SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT
 PRESCRIBED BY SECTION TWO THOUSAND TWENTY-THREE-A OF THIS  PART.    SUCH
 CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE
 COMPTROLLER  IN  CONSULTATION  WITH  THE  COMMISSIONER  OF  TAXATION AND
 FINANCE AND THE COMMISSIONER.
   2. IF SUCH A CERTIFICATION HAS BEEN MADE AND THE ACTUAL  TAX  LEVY  OF
 THE  SCHOOL  DISTRICT  EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS
 AMOUNT SHALL BE PLACED IN RESERVE AND USED IN THE MANNER  PRESCRIBED  BY
 SUBDIVISION  FIVE  OF  SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART,
 EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN DULY AUTHOR-
 IZED FOR THE APPLICABLE FISCAL YEAR BY THE SCHOOL DISTRICT VOTERS.
   3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY  SCHOOL
 DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF SECTION TWO THOUSAND TWEN-
 TY-THREE-A  OF  THIS  PART SHALL REPORT BOTH ITS PROPOSED BUDGET AND ITS
 ADOPTED BUDGET TO THE OFFICE OF THE STATE COMPTROLLER  AND  THE  COMMIS-
 SIONER  AT  THE TIME AND IN THE MANNER AS THEY MAY PRESCRIBE, WHETHER OR
 NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDI-
 VISION.
   § 4. Subdivision 3 of section 97-rrr of  the  state  finance  law,  as
 amended  by  section  1  of part F of chapter 59 of the laws of 2015, is
 amended to read as follows:

 S. 7509--A                         12                         A. 9509--A
 
   3. The monies in such fund shall be appropriated for  school  property
 tax exemptions granted pursuant to the real property tax law and payable
 pursuant to section thirty-six hundred nine-e of the education law[, and
 for payments to the city of New York pursuant to section fifty-four-f of
 this chapter].
   § 5. Section 925-b of the real property tax law, as amended by chapter
 161 of the laws of 2006, is amended to read as follows:
   §  925-b.  Extension; certain persons sixty-five years of age or over.
 Notwithstanding any contrary provision of this chapter, or any  general,
 special or local law, code or charter, the governing body of a municipal
 corporation  other than a county may, by resolution adopted prior to the
 levy of any taxes on real property located within such municipal  corpo-
 ration,  authorize  an  extension of no more than five business days for
 the payment of taxes without interest or penalty to any resident of such
 municipal corporation who has received an exemption pursuant to subdivi-
 sion four of section four hundred twenty-five or four hundred sixty-sev-
 en of this chapter, OR A CREDIT PURSUANT TO SUBSECTION (EEE) OF  SECTION
 SIX HUNDRED SIX OF THE TAX LAW, related to a principal residence located
 within  such municipal corporation. If such an extension is granted, and
 any taxes are not paid by the final date so provided, those taxes  shall
 be subject to the same interest and penalties that would have applied if
 no extension had been granted.
   § 6. Paragraph (d) of subdivision 1 of section 928-a of the real prop-
 erty  tax law is relettered paragraph (f) and two new paragraphs (d) and
 (e) are added to read as follows:
   (D) IF THE TAXES OF A CITY,  TOWN,  VILLAGE  OR  SCHOOL  DISTRICT  ARE
 COLLECTED BY A COUNTY OFFICIAL, THE COUNTY SHALL HAVE THE SOLE AUTHORITY
 TO  ESTABLISH  A  PARTIAL  PAYMENT PROGRAM PURSUANT TO THIS SECTION WITH
 RESPECT TO THE TAXES SO COLLECTED.
   (E) IF THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT  ARE  NOT
 COLLECTED  BY  A  COUNTY OFFICIAL, BUT ITS TAX BILLS ARE PREPARED BY THE
 COUNTY, OR ITS TAX COLLECTION ACCOUNTING SOFTWARE  IS  PROVIDED  BY  THE
 COUNTY,  THEN  BEFORE  THE  CITY,  TOWN,  VILLAGE OR SCHOOL DISTRICT MAY
 IMPLEMENT A PARTIAL PAYMENT PROGRAM PURSUANT TO THIS  SECTION,  IT  MUST
 OBTAIN  WRITTEN APPROVAL OF THE CHIEF EXECUTIVE OFFICER OF THE COUNTY OR
 THE COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES.
   § 7. Subparagraph (B) of paragraph 7 of subsection  (eee)  of  section
 606  of  the tax law, as amended by section 1 of part G of chapter 59 of
 the laws of 2017, is amended to read as follows:
   (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  may  be  disclosed  to  assessors
 [and], county directors of real property tax services, AND MUNICIPAL TAX
 COLLECTING OFFICERS. In addition, where an agreement is in place between
 the  commissioner  and  the head of the tax department of another state,
 such information may be disclosed to such official or his or her  desig-
 nees. Such information shall be considered confidential and shall not be
 subject to further disclosure pursuant to the freedom of information law
 or otherwise.
   § 7-a. Paragraph (g) of subdivision 2 of section 425 of the real prop-
 erty tax law, as added by section 1 of part B of chapter 389 of the laws
 of 1997 and 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:
   (g)  Computation  and  certification  by commissioner. It shall be the
 responsibility of the commissioner to compute the exempt amount for each
 assessing unit in each county in the  manner  provided  herein,  and  to

 S. 7509--A                         13                         A. 9509--A

 certify the same to the assessor of each assessing unit and to the coun-
 ty  director  of real property tax services of each county. Such certif-
 ication shall be  made  at  least  twenty  days  before  the  last  date
 prescribed  by  law  for  the  filing  of the tentative assessment roll.
 PROVIDED, HOWEVER, THAT WHERE SCHOOL TAXES ARE LEVIED ON  A  PRIOR  YEAR
 ASSESSMENT  ROLL, OR ON A FINAL ASSESSMENT ROLL THAT WAS FILED MORE THAN
 ONE YEAR AFTER THE TENTATIVE ROLL WAS FILED, SUCH CERTIFICATION SHALL BE
 MADE NO LATER THAN FIFTEEN DAYS AFTER THE PUBLICATION OF THE DATA NEEDED
 TO COMPUTE THE BASE FIGURE FOR THE ENHANCED STAR EXEMPTION  PURSUANT  TO
 CLAUSE  (A)  OF  SUBPARAGRAPH (VI) OF PARAGRAPH (B) OF THIS SUBDIVISION,
 AND PROVIDED FURTHER, THAT  UPON  RECEIPT  OF  SUCH  CERTIFICATION,  THE
 ASSESSOR  SHALL  THEREUPON  BE  AUTHORIZED  AND  DIRECTED TO CORRECT THE
 ASSESSMENT ROLL TO REFLECT THE EXEMPT AMOUNT SO CERTIFIED, OR, IF ANOTH-
 ER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT  THAT
 PERSON TO MAKE THE APPROPRIATE CORRECTIONS.
   §  8. Paragraph 6 of subsection (eee) of section 606 of the tax law is
 amended by adding a new subparagraph (A) to read as follows:
   (A) A MARRIED COUPLE  MAY  NOT  RECEIVE  A  CREDIT  PURSUANT  TO  THIS
 SUBSECTION  ON  MORE  THAN  ONE RESIDENCE DURING ANY GIVEN TAXABLE YEAR,
 UNLESS LIVING APART DUE TO LEGAL SEPARATION. NOR MAY  A  MARRIED  COUPLE
 RECEIVE  A  CREDIT  PURSUANT  TO  THIS SUBSECTION ON ONE RESIDENCE WHILE
 RECEIVING AN EXEMPTION PURSUANT TO SECTION FOUR HUNDRED  TWENTY-FIVE  OF
 THE  REAL PROPERTY TAX LAW ON ANOTHER RESIDENCE, UNLESS LIVING APART DUE
 TO LEGAL SEPARATION.
   § 9. This act shall take effect immediately; provided,  however,  that
 section  3-d  of  the  general municipal law, as added by section two of
 this act, shall expire and be deemed repealed on the same  date  and  in
 the  same  manner  as  section  1 of part A of chapter 97 of the laws of
 2011, expires and is deemed repealed, and provided that  section  2023-b
 of  the  education  law,  as  added  by section three of this act, shall
 expire and be deemed repealed on the same date and in the same manner as
 section 2 of part A of chapter 97 of the laws of 2011,  expires  and  is
 deemed repealed, and provided further that the amendments to paragraph 6
 of  subsection (eee) of section 606 of the tax law made by section eight
 of this act shall take effect immediately and  shall  apply  to  taxable
 years beginning on or after January 1, 2016.
   REPEAL  NOTE:  Section  606(bbb)  of  the  Tax Law, section 3-d of the
 General Municipal Law and section 2023-b of the  Education  Law  collec-
 tively  constituted  the  enabling legislation for the tax freeze credit
 program.  By the terms of those statutes, the tax freeze credit was only
 applicable to taxable  years  2014,  2015  and  2016.  Therefore,  these
 provisions   no  longer  serve  a  purpose,  except  for  the  reporting
 provisions, which facilitate the administration of the  tax  levy  limit
 program and are being preserved in a reenacted section 3-d of the Gener-
 al Municipal Law and section 2023-b of the Education Law.
 
                                  PART F
 
   Section  1. Subdivision 1 of section 544 of the real property tax law,
 as amended by chapter 18 of the laws of  2008,  is  amended  and  a  new
 subdivision 3 is added to read as follows:
   1.  The  comptroller  shall  pay taxes levied on lands of the state in
 each county pursuant to the foregoing sections of  this  title,  out  of
 moneys appropriated by the legislature therefor, to the county treasurer
 for  appropriate  distribution  upon  submission  of a statement of such
 taxes by him or her in such form and executed  in  such  manner  by  the

 S. 7509--A                         14                         A. 9509--A
 
 county treasurer as may be required by the comptroller. Provided, howev-
 er,  that in the case of lands which are taxable pursuant to subdivision
 (j) of section five hundred thirty-two of this  title,  the  comptroller
 shall  pay  such  taxes.  Such payment shall be requested, processed and
 paid separately from all other taxes that  are  payable  to  the  county
 treasurer pursuant to this section.  PROVIDED FURTHER, THAT ON AND AFTER
 APRIL FIRST, TWO THOUSAND EIGHTEEN, ONCE TAXES HAVE BEEN PAID ON A TAXA-
 BLE  PARCEL  OF  STATE  LAND PURSUANT TO THIS SUBDIVISION, THE AMOUNT OF
 TAXES DUE AND PAYABLE ON THAT PARCEL THEREAFTER SHALL BE  CALCULATED  BY
 THE  COMPTROLLER  IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION THREE
 OF THIS SECTION.
   3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ON AND  AFTER
 APRIL FIRST, TWO THOUSAND EIGHTEEN, ONCE TAXES HAVE BEEN PAID ON A TAXA-
 BLE  PARCEL  OF  STATE LAND PURSUANT TO SUBDIVISION ONE OF THIS SECTION,
 THE COMPTROLLER SHALL THEREAFTER CALCULATE THE TAXES DUE AND PAYABLE  ON
 THAT PARCEL AS FOLLOWS:
   (A)  IN  THE  CASE  OF  A LOCAL GOVERNMENT, THE TAXES SO PAYABLE SHALL
 EQUAL THE TAXES THAT WERE PAYABLE ON THAT PARCEL  IN  THE  PRIOR  FISCAL
 YEAR  OF  THE  LOCAL  GOVERNMENT MULTIPLIED BY THE ALLOWABLE LEVY GROWTH
 FACTOR. AS USED IN THIS PARAGRAPH, THE TERMS "LOCAL GOVERNMENT,"  "PRIOR
 FISCAL  YEAR"  AND  "ALLOWABLE  LEVY  GROWTH FACTOR" SHALL HAVE THE SAME
 MEANINGS AS SET FORTH IN SECTION THREE-C OF THE GENERAL  MUNICIPAL  LAW,
 PROVIDED  THAT  IF  SUCH SECTION IS NO LONGER IN EFFECT ON THE DATE SUCH
 TAXES ARE PAID, SUCH TERMS SHALL BE DEEMED  TO  HAVE  THE  MEANINGS  SET
 FORTH  IN  SUCH  SECTION  AS IT READ ON THE LAST DATE ON WHICH IT WAS IN
 EFFECT.
   (B) IN THE CASE OF A SCHOOL DISTRICT, THE TAXES SO PAYABLE SHALL EQUAL
 THE TAXES THAT WERE PAYABLE ON THAT PARCEL IN THE PRIOR SCHOOL  YEAR  OF
 THE  SCHOOL  DISTRICT MULTIPLIED BY THE ALLOWABLE LEVY GROWTH FACTOR. AS
 USED IN THIS PARAGRAPH, THE TERMS "SCHOOL DISTRICT," "PRIOR SCHOOL YEAR"
 AND "ALLOWABLE LEVY GROWTH FACTOR" SHALL HAVE THE SAME MEANINGS  AS  SET
 FORTH  IN  SECTION  TWO  THOUSAND  TWENTY-THREE-A  OF THE EDUCATION LAW,
 PROVIDED THAT IF SUCH SECTION IS NO LONGER IN EFFECT ON  THE  DATE  SUCH
 TAXES  ARE  PAID,  SUCH  TERMS  SHALL BE DEEMED TO HAVE THE MEANINGS SET
 FORTH IN SUCH SECTION AS IT READ ON THE LAST DATE ON  WHICH  IT  WAS  IN
 EFFECT.
   (C) ON OR BEFORE JULY FIRST OF EACH YEAR, THE COMPTROLLER SHALL CALCU-
 LATE THE AMOUNTS OF TAXES THAT ARE DUE AND PAYABLE ON TAXABLE STATE LAND
 PURSUANT  TO  THIS SUBDIVISION, AND SHALL NOTIFY THE COMMISSIONER OF THE
 AMOUNTS SO CALCULATED. THE COMMISSIONER SHALL  THEREUPON  TRANSMIT  THAT
 INFORMATION TO THE AFFECTED LOCAL GOVERNMENTS AND SCHOOL DISTRICTS.  THE
 TAXES  DUE  ON SUCH LANDS SHALL BE PAID BY THE COMPTROLLER IN THE MANNER
 PROVIDED BY SUBDIVISION ONE OF THIS SECTION.
   (D) THE FOLLOWING PROVISIONS SHALL  APPLY  TO  STATE  LANDS  THAT  ARE
 SUBJECT TO THE PROVISIONS OF THIS SUBDIVISION:
   (I)  SUCH  LANDS  SHALL  NOT BE INCLUDED ON THE LISTS OF TAXABLE STATE
 LANDS THAT MUST BE SUPPLIED BY THE COMMISSIONER PURSUANT TO SECTION FIVE
 HUNDRED FORTY OF THIS TITLE.
   (II) THE ASSESSMENTS OF SUCH  LANDS  SHALL  NOT  BE  REPORTED  TO  THE
 COMMISSIONER PURSUANT TO SECTION FIVE HUNDRED FORTY-TWO OF THIS TITLE.
   (III)  THE  ASSESSMENTS  OF  SUCH  LANDS  SHALL  NOT BE SUBJECT TO THE
 APPROVAL OF THE COMMISSIONER PURSUANT TO SUCH SECTION, AND SHALL NOT  BE
 TAKEN INTO ACCOUNT IN THE CALCULATION OF THE TAXES DUE ON SUCH LANDS.
   (IV)  SUCH LANDS SHALL BE ENTERED ON THE EXEMPT PORTION OF THE ASSESS-
 MENT ROLL, NOTWITHSTANDING THE FACT THAT THEY ARE  TAXABLE  PURSUANT  TO
 THIS TITLE. PROVIDED, THAT NO SUCH ENTRY SHALL BE MADE IN THE CASE OF AN

 S. 7509--A                         15                         A. 9509--A
 
 ASSESSMENT ADJUSTMENT MADE BY THE COMMISSIONER PURSUANT TO PARAGRAPH (C)
 OF  SUBDIVISION THREE OF SECTION FIVE HUNDRED FORTY-TWO OF THIS TITLE OR
 SECTION 15-2115 OF THE ENVIRONMENTAL CONSERVATION LAW, OR IN THE CASE OF
 STATE  AID  PAYABLE  PURSUANT TO SECTION FIVE HUNDRED FORTY-FIVE OF THIS
 TITLE DUE TO A REDUCTION IN THE ASSESSMENT OF TAXABLE STATE LAND.
   (V) SUCH LANDS SHALL BE DISREGARDED WHEN CALCULATING  STATE  EQUALIZA-
 TION RATES AND TAX RATES.
   (VI)  WHEN A SCHOOL DISTRICT RECEIVES PAYMENTS OF TAXES ON STATE LANDS
 PURSUANT TO THIS SUBDIVISION, ANY ACTUAL  VALUATION  COMPUTED  FOR  SUCH
 SCHOOL  DISTRICT  PURSUANT  TO PARAGRAPH C OF SUBDIVISION ONE OF SECTION
 THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW  SHALL  INCLUDE  THE  ACTUAL
 VALUATION EQUIVALENT OF THOSE PAYMENTS. THE COMMISSIONER SHALL DETERMINE
 SUCH  ACTUAL  VALUATION  EQUIVALENT  BY  DIVIDING  THE  PAYMENT MADE, AS
 REPORTED TO SUCH COMMISSIONER BY THE COMPTROLLER, BY THE SCHOOL TAX RATE
 THAT WAS APPLIED TO REAL PROPERTY ON THAT YEAR'S ASSESSMENT ROLL OR,  IF
 APPLICABLE,  THE  SPECIAL  APPORTIONMENT  RATE  DETERMINED  PURSUANT  TO
 SECTION TWELVE HUNDRED TWENTY-SEVEN OF THIS CHAPTER  AND  DIVIDING  SUCH
 RESULT  BY  THE  FINAL STATE EQUALIZATION RATE FOR THAT ROLL. THE ACTUAL
 VALUATION EQUIVALENT SHALL BE REPORTED TO THE STATE COMPTROLLER AND  THE
 COMMISSIONER  OF  EDUCATION,  AND  SHALL  BE USED BY THE COMMISSIONER OF
 EDUCATION IN THE DETERMINATION OF ANY STATE AVERAGE THAT USES REAL PROP-
 ERTY TAXES LEVIED AGAINST AND/OR ACTUAL VALUATION BASED UPON THE  CORRE-
 SPONDING  ASSESSMENT  ROLL.  EACH  SCHOOL DISTRICT RECEIVING PAYMENTS OF
 TAXES ON STATE LANDS PURSUANT TO THIS SUBDIVISION SHALL ANNUALLY  REPORT
 THOSE  PAYMENTS  TO  THE  COMMISSIONER  OF EDUCATION, WITH A COPY TO THE
 COMMISSIONER, AS A CONDITION TO RECEIVING ANY AID  PURSUANT  TO  SECTION
 THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW.
   (E)  THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO THE PAYMENT
 OF STATE AID PURSUANT TO SECTION FIVE HUNDRED FORTY-FIVE OF  THIS  TITLE
 IN  RELATION TO PROPERTY THAT HAS BECOME EXEMPT FROM TAXATION DUE TO ITS
 ACQUISITION BY THE STATE OR AN AGENCY OF THE STATE.
   § 2. This act shall take effect immediately.
 
                                  PART G
 
   Section 1. Section 4 of chapter 475 of the laws of 2013, amending  the
 real  property  tax law relating to assessment ceilings for local public
 utility mass real property, is amended to read as follows:
   § 4. This act shall take effect on the first of January of the  second
 calendar  year  commencing  after  this  act shall have become a law and
 shall apply to assessment rolls with taxable status dates  on  or  after
 such  date;  provided, however, that this act shall expire and be deemed
 repealed [four] EIGHT years after such  effective  date;  and  provided,
 further,  that  no assessment of local public utility mass real property
 appearing on the municipal assessment roll with a  taxable  status  date
 occurring  in the first calendar year after this act shall have become a
 law shall be less than ninety percent  or  more  than  one  hundred  ten
 percent  of  the  assessment  of  the same property on the date this act
 shall have become a law.
   § 2. Subdivision 3 of section 499-kkkk of the real property  tax  law,
 as  added  by  chapter  475  of  the laws of 2013, is amended to read as
 follows:
   3. (A) For assessment rolls with taxable status dates in each  of  the
 three  calendar  years  including  and  following the year in which this
 section shall take effect, the commissioner shall establish  no  assess-
 ment  ceiling  that is less than ninety percent or more than one hundred

 S. 7509--A                         16                         A. 9509--A
 
 ten percent of the assessment of such local  public  utility  mass  real
 property  appearing  on  the  municipal  assessment  roll with a taxable
 status date occurring in the second preceding calendar  year  from  when
 this  section shall take effect, except that the commissioner may estab-
 lish assessment ceilings below the ninety percent level or above the one
 hundred ten percent level to take into account any change  in  level  of
 assessment  and/or  to take into account any additions or retirements to
 public utility mass real property or litigation affecting the  value  or
 taxable  status of the local public utility mass real property initiated
 prior to the effective date of this section.
   (B) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN  THE  YEARS  TWO
 THOUSAND  EIGHTEEN,  TWO  THOUSAND NINETEEN AND TWO THOUSAND TWENTY, THE
 COMMISSIONER SHALL ESTABLISH NO ASSESSMENT CEILING  THAT  IS  BELOW  THE
 LOWER LIMIT OR ABOVE THE UPPER LIMIT SPECIFIED IN THIS PARAGRAPH, EXCEPT
 THAT THE COMMISSIONER MAY ESTABLISH ASSESSMENT CEILINGS BELOW SUCH LOWER
 LIMIT OR ABOVE SUCH UPPER LIMIT TO TAKE INTO ACCOUNT ANY CHANGE IN LEVEL
 OF  ASSESSMENT  AND/OR TO TAKE INTO ACCOUNT ANY ADDITIONS OR RETIREMENTS
 TO PUBLIC UTILITY MASS REAL PROPERTY OR LITIGATION AFFECTING  THE  VALUE
 OR  TAXABLE STATUS OF THE LOCAL PUBLIC UTILITY MASS REAL PROPERTY INITI-
 ATED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION.
   (I) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS  DATES  IN  TWO  THOUSAND
 EIGHTEEN,  THE  ASSESSMENT  CEILING  SHALL NOT BE LESS THAN SEVENTY-FIVE
 PERCENT OR MORE THAN ONE HUNDRED TWENTY-FIVE PERCENT OF  THE  ASSESSMENT
 OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI-
 PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO
 THOUSAND THIRTEEN.
   (II)  FOR  ASSESSMENT  ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND
 NINETEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN FIFTY PERCENT OR
 MORE THAN ONE HUNDRED FIFTY PERCENT OF  THE  ASSESSMENT  OF  SUCH  LOCAL
 PUBLIC  UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICIPAL ASSESSMENT
 ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND THIR-
 TEEN.
   (III) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN  TWO  THOUSAND
 TWENTY,  THE  ASSESSMENT  CEILING  SHALL  NOT  BE  LESS THAN TWENTY-FIVE
 PERCENT OR MORE THAN ONE HUNDRED SEVENTY-FIVE PERCENT OF THE  ASSESSMENT
 OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI-
 PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO
 THOUSAND THIRTEEN.
   §  3.  This act shall take effect immediately, provided, however, that
 the amendments to subdivision three of  section  499-kkkk  of  the  real
 property  tax  law  made by section two of this act shall not affect the
 repeal of such section and shall be deemed to be repealed therewith.
 
                                  PART H
 
   Section 1. Subsection (c) of section 683 of the tax law is amended  by
 adding a new paragraph 12 to read as follows:
   (12)   EXCEPT  AS  OTHERWISE  PROVIDED  IN  PARAGRAPH  THREE  OF  THIS
 SUBSECTION, OR AS OTHERWISE PROVIDED IN  THIS  SECTION  WHERE  A  LONGER
 PERIOD  OF  TIME  MAY  APPLY,  IF A TAXPAYER FILES AN AMENDED RETURN, AN
 ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON  THE  FILING  OF
 THE  AMENDED  RETURN),  INCLUDING  RECOVERY OF A PREVIOUSLY PAID REFUND,
 ATTRIBUTABLE TO A CHANGE OR CORRECTION ON  THE  AMENDED  RETURN  FROM  A
 PRIOR  RETURN  MAY  BE  MADE  AT  ANY TIME WITHIN THREE YEARS AFTER SUCH
 AMENDED RETURN IS FILED.

 S. 7509--A                         17                         A. 9509--A
 
   § 2. Subsection (c) of section 1083 of  the  tax  law  is  amended  by
 adding a new paragraph 12 to read as follows:
   (12)   EXCEPT  AS  OTHERWISE  PROVIDED  IN  PARAGRAPH  THREE  OF  THIS
 SUBSECTION, OR AS OTHERWISE PROVIDED IN  THIS  SECTION  WHERE  A  LONGER
 PERIOD  OF  TIME  MAY  APPLY,  IF A TAXPAYER FILES AN AMENDED RETURN, AN
 ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON  THE  FILING  OF
 THE  AMENDED  RETURN),  INCLUDING  RECOVERY OF A PREVIOUSLY PAID REFUND,
 ATTRIBUTABLE TO A CHANGE OR CORRECTION ON  THE  AMENDED  RETURN  FROM  A
 PRIOR  RETURN  MAY  BE  MADE  AT  ANY TIME WITHIN THREE YEARS AFTER SUCH
 AMENDED RETURN IS FILED.
   § 3. Subdivision (c) of section 11-1783 of the administrative code  of
 the  city  of New York is amended by adding a new paragraph 9 to read as
 follows:
   (9) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF  THIS  SUBDIVI-
 SION,  OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF
 TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT  OF
 TAX  (IF  NOT  DEEMED  TO  HAVE BEEN MADE UPON THE FILING OF THE AMENDED
 RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO
 A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY  BE
 MADE AT ANY TIME WITHIN THREE YEARS AFTER SUCH AMENDED RETURN IS FILED.
   § 4. This act shall take effect immediately and shall apply to amended
 returns filed on or after the effective date of this act.
 
                                  PART I
 
   Section  1.  Paragraph  1 of subdivision (d) of section 658 of the tax
 law, as amended by chapter 166 of the laws of 1991, is amended  to  read
 as follows:
   (1) The commissioner of taxation and finance may prescribe regulations
 and  instructions  requiring returns of information to be made and filed
 on or before February twenty-eighth of each year as to  the  payment  or
 crediting in any calendar year of amounts of six hundred dollars or more
 to  any taxpayer under this article. Such returns may be required of any
 person, including lessees or mortgagors of real  or  personal  property,
 fiduciaries, employers, and all officers and employees of this state, or
 of  any  municipal  corporation  or political subdivision of this state,
 having the control, receipt, custody, disposal or payment  of  interest,
 rents,  salaries,  wages,  premiums, annuities, compensations, remunera-
 tions, emoluments or other  fixed  or  determinable  gains,  profits  or
 income,  except interest coupons payable to bearer. Information required
 to be furnished pursuant to paragraph four of subsection (a) of  section
 six  hundred  seventy-four  on a quarterly combined withholding and wage
 reporting return covering [the last] EACH calendar quarter of each  year
 and relating to tax withheld on wages paid by an employer to an employee
 for [the full] EACH calendar [year] QUARTER, shall constitute the return
 of  information  required  to be made under this section with respect to
 such wages.
   § 2. Subparagraph (A) of paragraph 4 of subsection (a) of section  674
 of the tax law, as amended by section 1 of subpart E of part VI of chap-
 ter 57 of the laws of 2009, is amended to read as follows:
   (A)  All  employers  described  in  paragraph one of subsection (a) of
 section six hundred seventy-one of  this  part,  including  those  whose
 wages paid are not sufficient to require the withholding of tax from the
 wages  of  any of their employees, all employers required to provide the
 wage reporting information for the employees  described  in  subdivision
 one  of  section  one  hundred  seventy-one-a  of  this chapter, and all

 S. 7509--A                         18                         A. 9509--A
 
 employers  liable  for  unemployment  insurance  contributions  or   for
 payments  in  lieu of such contributions pursuant to article eighteen of
 the labor law, shall file a quarterly combined withholding, wage report-
 ing  and  unemployment insurance return detailing the preceding calendar
 quarter's withholding tax transactions, such  quarter's  wage  reporting
 information, SUCH QUARTER'S WITHHOLDING RECONCILIATION INFORMATION, such
 quarter's  unemployment  insurance contributions, and such other related
 information as the commissioner of taxation and finance or  the  commis-
 sioner  of labor, as applicable, may prescribe. [In addition, the return
 covering the last calendar quarter of each year shall also include with-
 holding reconciliation information for such calendar year.] Such returns
 shall be filed no later than the last day of  the  month  following  the
 last day of each calendar quarter.
   §  3.  Paragraph 3 of subsection (v) of section 685 of the tax law, as
 amended by chapter 477 of the laws  of  1998,  is  amended  to  read  as
 follows:
   (3)  Failure  to  provide  complete  and  correct employee withholding
 reconciliation information. In the case of a failure by an  employer  to
 provide  complete and correct [annual] QUARTERLY withholding information
 relating to individual employees on a  quarterly  combined  withholding,
 wage  reporting  and  unemployment  insurance return covering [the last]
 EACH calendar quarter of a year, such employer shall, unless it is shown
 that such failure is due to reasonable cause  and  not  due  to  willful
 neglect,  pay a penalty equal to the product of fifty dollars multiplied
 by the number of employees for whom such information  is  incomplete  or
 incorrect;  provided,  however,  that  if  the  number of such employees
 cannot be determined  from  the  quarterly  combined  withholding,  wage
 reporting  and  unemployment  insurance  return,  the  commissioner  may
 utilize any information in the commissioner's possession in making  such
 determination.  The total amount of the penalty imposed pursuant to this
 paragraph on an employer for any such failure for [the last] EACH calen-
 dar quarter of a year shall not exceed ten thousand dollars.
   § 4. This act shall take effect immediately and shall apply to  calen-
 dar quarters beginning on or after January 1, 2019.

                                  PART J
 
   Section 1. Paragraph (i) of subdivision (d) of section 1105 of the tax
 law, as amended by chapter 405 of the laws of 1971 and subparagraph 3 as
 amended  by  section 1 of part DD of chapter 407 of the laws of 1999, is
 amended to read as follows:
   (i) The receipts from every sale, OTHER  THAN  SALES  FOR  RESALE,  of
 beer,  wine  or  other  alcoholic  beverages  or  any other drink of any
 nature, or from every sale, OTHER THAN SALES FOR  RESALE,  of  food  and
 drink  of  any  nature or of food alone, when sold in or by restaurants,
 taverns or other establishments in this state, or by caterers, including
 in the amount of such receipts  any  cover,  minimum,  entertainment  or
 other  charge  made to patrons or customers (except those receipts taxed
 pursuant to subdivision (f) of this section):
   (1) in all instances where the sale is for consumption on the premises
 where sold;
   (2) in those instances where the vendor or any person  whose  services
 are  arranged for by the vendor, after the delivery of the food or drink
 by or on behalf of the vendor for consumption off the  premises  of  the
 vendor,  serves  or  assists  in serving, cooks, heats or provides other
 services with respect to the food or drink; and

 S. 7509--A                         19                         A. 9509--A
 
   (3) in those instances where  the  sale  is  made  through  a  vending
 machine that is activated by use of coin, currency, credit card or debit
 card  (except  the  sale of drinks in a heated state made through such a
 vending machine) or is for consumption off the premises of  the  vendor,
 except  where food (other than sandwiches) or drink or both are (A) sold
 in an unheated state and, (B) are of a type commonly sold  for  consump-
 tion off the premises and in the same form and condition, quantities and
 packaging,  in  establishments  which  are  food stores other than those
 principally engaged in selling foods prepared and ready to be eaten.
   § 2. This act shall take effect June 1, 2018 and shall apply to  sales
 made on and after such date.
 
                                  PART K
 
   Section  1.  The  tax  law is amended by adding a new section 171-z to
 read as follows:
   § 171-Z. INFORMATION SHARING WITH THE COMPTROLLER REGARDING  UNCLAIMED
 FUNDS.  1. NOTWITHSTANDING ANY OTHER LAW, THE COMMISSIONER IS AUTHORIZED
 TO RELEASE TO THE COMPTROLLER  INFORMATION  REGARDING  FIXED  AND  FINAL
 UNWARRANTED  DEBTS  OF  TAXPAYERS  FOR  PURPOSES OF COLLECTING UNCLAIMED
 FUNDS FROM THE COMPTROLLER TO SATISFY FIXED AND FINAL UNWARRANTED  DEBTS
 OWED  BY  TAXPAYERS. FOR PURPOSES OF THIS SECTION, THE TERM "UNWARRANTED
 DEBT" SHALL MEAN PAST-DUE TAX LIABILITIES, INCLUDING UNPAID TAX,  INTER-
 EST AND PENALTY, THAT THE COMMISSIONER IS REQUIRED BY LAW TO COLLECT AND
 THAT  HAVE  BECOME  FIXED AND FINAL SUCH THAT THE TAXPAYER NO LONGER HAS
 ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW AND  A  WARRANT  HAS  NOT
 BEEN  FILED;  AND  THE TERM "TAXPAYER" SHALL MEAN ANY INDIVIDUAL, CORPO-
 RATION, PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP OR COMPANY,  PARTNER,
 MEMBER,  MANAGER, SOLE PROPRIETORSHIP, ESTATE, TRUST, FIDUCIARY OR ENTI-
 TY, WHO OR WHICH HAS BEEN IDENTIFIED AS OWING TAXES TO THE  STATE.  THIS
 SECTION  SHALL  NOT BE DEEMED TO ABROGATE OR LIMIT IN ANY WAY THE POWERS
 AND AUTHORITY OF THE COMPTROLLER TO SET OFF DEBTS OWED  THE  STATE  FROM
 UNCLAIMED FUNDS, UNDER THE CONSTITUTION OF THE STATE OR ANY OTHER LAW.
   2.  THE  COMPTROLLER SHALL KEEP ALL INFORMATION HE OR SHE OBTAINS FROM
 THE COMMISSIONER CONFIDENTIAL, AND ANY EMPLOYEE, AGENT OR REPRESENTATIVE
 OF THE COMPTROLLER IS PROHIBITED FROM DISCLOSING ANY  TAXPAYER  INFORMA-
 TION  RECEIVED  UNDER THIS SECTION TO ANYONE OTHER THAN THE COMMISSIONER
 OR STAFF OF THE DEPARTMENT OR STAFF  OF  THE  DEPARTMENT  OF  AUDIT  AND
 CONTROL FOR THE PURPOSES DESCRIBED IN THIS SECTION.
   § 2. This act shall take effect immediately.

                                  PART L
 
   Section 1. Subdivision 2 of section 136 of the social services law, as
 amended  by  section 24 of part B of chapter 436 of the laws of 1997, is
 amended to read as follows:
   2. All communications and information relating to a  person  receiving
 public  assistance  or  care  obtained  by any social services official,
 service officer, or employee in the course of his or her work  shall  be
 considered  confidential  and,  except  as  otherwise  provided  in this
 section, shall be disclosed only to the  commissioner,  or  his  or  her
 authorized  representative,  the  commissioner of labor, or   his or her
 authorized representative, the commissioner of health,  or  his  or  her
 authorized  representative, THE COMMISSIONER OF TAXATION AND FINANCE, OR
 HIS OR HER AUTHORIZED  REPRESENTATIVE  (OTHER  THAN  THE  DISCLOSURE  OF
 INFORMATION  THAT  HAS  BEEN  PROHIBITED  BY  FEDERAL  LAW), the welfare

 S. 7509--A                         20                         A. 9509--A
 
 inspector general, or his or her authorized representative,  the  county
 board  of  supervisors,  city council, town board or other board or body
 authorized and required to appropriate funds for public  assistance  and
 care  in  and  for such county, city or town or its authorized represen-
 tative or, by authority of the county,  city  or  town  social  services
 official, to a person or agency considered entitled to such information.
 Nothing  herein shall preclude a   social services official from report-
 ing to an appropriate agency  or  official,  including  law  enforcement
 agencies  or  officials,  known  or   suspected instances of physical or
 mental injury, sexual abuse or exploitation, sexual contact with a minor
 or negligent treatment or maltreatment of a child of which the  official
 becomes  aware  in  the administration of public assistance and care nor
 shall it preclude communication with the federal immigration and  natur-
 alization service regarding the immigration status of any individual.
   § 2. This act shall take effect immediately.
 
                                  PART M
 
   Section  1.  The tax law is amended by adding a new section 44 to read
 as follows:
   § 44.  INVESTMENT  MANAGEMENT  SERVICES.  (A)  FOR  PURPOSES  OF  THIS
 SECTION,  THE  TERM "INVESTMENT MANAGEMENT SERVICES" TO A PARTNERSHIP, S
 CORPORATION OR ENTITY INCLUDES (1) RENDERING INVESTMENT ADVICE REGARDING
 THE PURCHASE OR SALE OF  SECURITIES  AS  DEFINED  IN  PARAGRAPH  TWO  OF
 SUBSECTION  (C)  OF  SECTION  FOUR  HUNDRED SEVENTY-FIVE OF THE INTERNAL
 REVENUE CODE WITHOUT REGARD TO THE LAST SENTENCE  THEREOF,  REAL  ESTATE
 HELD FOR RENTAL OR INVESTMENT, INTERESTS IN PARTNERSHIPS, COMMODITIES AS
 DEFINED  IN  PARAGRAPH  TWO  OF  SUBSECTION  (E) OF SECTION FOUR HUNDRED
 SEVENTY-FIVE OF THE INTERNAL REVENUE  CODE,  OR  OPTIONS  OR  DERIVATIVE
 CONTRACTS WITH RESPECT TO ANY OF THE FOREGOING; (2) MANAGING, ACQUIRING,
 OR  DISPOSING OF ANY SUCH ASSET; (3) ARRANGING FINANCING WITH RESPECT TO
 THE ACQUISITION OF ANY SUCH ASSET; AND (4) RELATED ACTIVITIES IN SUPPORT
 OF ANY SERVICE DESCRIBED IN PARAGRAPHS ONE, TWO, OR THREE OF THIS SUBDI-
 VISION.
   (B) SPECIAL RULE FOR PARTNERSHIPS AND S CORPORATIONS.  NOTWITHSTANDING
 ANY STATE OR FEDERAL LAW TO THE CONTRARY:
   (1)  WHERE  A  PARTNER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR THE
 PARTNERSHIP, THE PARTNER WILL NOT BE TREATED AS A PARTNER  FOR  PURPOSES
 OF THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE PARTNER'S DISTRIBUTIVE
 SHARE  OF  INCOME,  GAIN,  LOSS  AND DEDUCTION, INCLUDING ANY GUARANTEED
 PAYMENTS, THAT IS IN EXCESS OF THE AMOUNT SUCH DISTRIBUTIVE SHARE  WOULD
 HAVE BEEN IF THE PARTNER HAD PERFORMED NO INVESTMENT MANAGEMENT SERVICES
 FOR  THE  PARTNERSHIP.  INSTEAD, SUCH EXCESS AMOUNT SHALL BE TREATED FOR
 PURPOSES OF ARTICLE NINE-A OF THIS CHAPTER AS  A  BUSINESS  RECEIPT  FOR
 SERVICES  AND  FOR  PURPOSES  OF  ARTICLE  TWENTY-TWO OF THIS CHAPTER AS
 INCOME ATTRIBUTABLE TO A  TRADE,  BUSINESS,  PROFESSION  OR  OCCUPATION.
 PROVIDED,  HOWEVER, THE AMOUNT OF THE DISTRIBUTIVE SHARE THAT WOULD HAVE
 BEEN DETERMINED  IF  THE  PARTNER  PERFORMED  NO  INVESTMENT  MANAGEMENT
 SERVICES SHALL NOT BE LESS THAN ZERO.
   (2)  WHERE  A  SHAREHOLDER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR
 THE S CORPORATION, THE SHAREHOLDER WILL NOT BE TREATED AS A  SHAREHOLDER
 FOR  PURPOSES  OF  THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE SHARE-
 HOLDER'S PRO RATA SHARE OF INCOME, GAIN, LOSS AND DEDUCTION THAT  IS  IN
 EXCESS  OF  THE AMOUNT SUCH PRO RATA SHARE WOULD HAVE BEEN IF THE SHARE-
 HOLDER HAD PERFORMED NO INVESTMENT MANAGEMENT  SERVICES.  INSTEAD,  SUCH
 EXCESS  AMOUNT  SHALL  BE  TREATED FOR PURPOSES OF ARTICLE TWENTY-TWO OF

 S. 7509--A                         21                         A. 9509--A
 
 THIS CHAPTER AS INCOME ATTRIBUTABLE TO A TRADE, BUSINESS, PROFESSION  OR
 OCCUPATION.  PROVIDED,  HOWEVER,  THE  AMOUNT OF THE PRO RATA SHARE THAT
 WOULD HAVE BEEN DETERMINED IF  THE  SHAREHOLDER  PERFORMED  NO  SERVICES
 SHALL NOT BE LESS THAN ZERO.
   (3)  A  PARTNER  OR  SHAREHOLDER  WILL  NOT  BE DEEMED TO BE PROVIDING
 INVESTMENT MANAGEMENT SERVICES UNDER THIS SECTION  IF  AT  LEAST  EIGHTY
 PERCENT  OF  THE AVERAGE FAIR MARKET VALUE OF THE ASSETS OF THE PARTNER-
 SHIP OR S CORPORATION DURING THE TAXABLE YEAR  CONSIST  OF  REAL  ESTATE
 HELD FOR RENTAL OR INVESTMENT.
   (C)  IN  ADDITION TO ANY OTHER TAXES OR SURCHARGES IMPOSED PURSUANT TO
 ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER, ANY  CORPORATION,  PARTNER
 OR SHAREHOLDER PROVIDING INVESTMENT MANAGEMENT SERVICES SHALL BE SUBJECT
 TO  AN  ADDITIONAL  TAX,  REFERRED  TO AS THE "CARRIED INTEREST FAIRNESS
 FEE".  SUCH CARRIED INTEREST FAIRNESS FEE SHALL BE  EQUAL  TO  SEVENTEEN
 PERCENT  OF  THE EXCESS AMOUNT DETERMINED PURSUANT TO SUBDIVISION (B) OF
 THIS SECTION; PROVIDED, HOWEVER, (I) IN THE CASE  OF  A  CORPORATION  OR
 SHAREHOLDER  OF  AN  S  CORPORATION PROVIDING SUCH INVESTMENT MANAGEMENT
 SERVICES, SUCH FEE SHALL BE EQUAL TO SEVENTEEN  PERCENT  OF  THE  EXCESS
 AMOUNT  APPORTIONED  TO  THE  STATE  BY  APPLYING THE CORPORATION'S OR S
 CORPORATION'S APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO  HUNDRED
 TEN-A OF THIS CHAPTER; (II) IN THE CASE OF A NONRESIDENT PARTNER PROVID-
 ING  SUCH  INVESTMENT  MANAGEMENT  SERVICES,  SUCH FEE SHALL BE EQUAL TO
 SEVENTEEN PERCENT OF THE EXCESS AMOUNT DERIVED FROM NEW YORK SOURCES  AS
 DETERMINED  UNDER  SECTION  SIX HUNDRED THIRTY-TWO OF THIS CHAPTER. SUCH
 CARRIED INTEREST FAIRNESS FEE SHALL BE ADMINISTERED IN  ACCORDANCE  WITH
 ARTICLE  NINE-A OR TWENTY-TWO OF THIS CHAPTER, AS APPLICABLE, UNTIL SUCH
 TIME AS THE COMMISSIONER OF TAXATION AND FINANCE HAS NOTIFIED THE LEGIS-
 LATIVE BILL  DRAFTING  COMMISSION  THAT  FEDERAL  LEGISLATION  HAS  BEEN
 ENACTED  THAT TREATS THE PROVISION OF INVESTMENT MANAGEMENT SERVICES FOR
 FEDERAL TAX PURPOSES SUBSTANTIALLY THE SAME AS PROVIDED IN THIS SECTION.
   § 2. Paragraph (a) of subdivision 6 of section 208 of the tax law,  as
 amended  by  section  5  of part T of chapter 59 of the laws of 2015, is
 amended to read as follows:
    (a) (i) The term "investment income" means income, including  capital
 gains  in  excess  of  capital  losses,  from investment capital, to the
 extent included in  computing  entire  net  income,  less,  (A)  in  the
 discretion  of  the  commissioner,  any interest deductions allowable in
 computing entire net income which are directly or  indirectly  attribut-
 able to investment capital or investment income, AND (B) ANY NET CAPITAL
 GAIN  INCLUDED IN FEDERAL TAXABLE INCOME THAT MUST BE RECHARACTERIZED AS
 A BUSINESS RECEIPT PURSUANT  TO  SECTION  FORTY-FOUR  OF  THIS  CHAPTER;
 provided, however, that in no case shall investment income exceed entire
 net  income.  (ii) If the amount of interest deductions subtracted under
 subparagraph (i) of this paragraph exceeds investment income, the excess
 of such amount over investment income must be added back to  entire  net
 income.  (iii)  If  the  taxpayer's investment income determined without
 regard to the interest deductions subtracted under subparagraph  (i)  of
 this  paragraph  comprises  more  than  eight  percent of the taxpayer's
 entire net income, investment income determined without regard  to  such
 interest deductions cannot exceed eight percent of the taxpayer's entire
 net income.
   § 3. Subsection (b) of section 617 of the tax law, as amended by chap-
 ter 606 of the laws of 1984, is amended to read as follows:
   (b)  Character  of  items. [Each] EXCEPT AS PROVIDED IN SECTION FORTY-
 FOUR OF THIS CHAPTER, EACH item of partnership and S corporation income,
 gain, loss, or deduction shall have the same character for a partner  or

 S. 7509--A                         22                         A. 9509--A
 
 shareholder under this article as for federal income tax purposes. Where
 an  item  is not characterized for federal income tax purposes, it shall
 have the same character for a partner  or  shareholder  as  if  realized
 directly  from  the  source  from which realized by the partnership or S
 corporation or incurred in the same manner as incurred by  the  partner-
 ship or S corporation.
   § 4. Subsection (d) of section 631 of the tax law, as amended by chap-
 ter 28 of the laws of 1987, is amended to read as follows:
   (d)  Purchase  and sale for own account.-- A nonresident, other than a
 dealer holding property primarily for sale to customers in the  ordinary
 course  of  his  OR  HER  trade  or business OR A PARTNER OR SHAREHOLDER
 PERFORMING  INVESTMENT  MANAGEMENT  SERVICES  AS  DESCRIBED  IN  SECTION
 FORTY-FOUR  OF THIS CHAPTER, shall not be deemed to carry on a business,
 trade, profession or occupation in this state solely by  reason  of  the
 purchase  and sale of property or the purchase, sale or writing of stock
 option contracts, or both, for his own account.
   § 5. The opening paragraph of subsection (b) of section 632 of the tax
 law, as amended by chapter 28 of the laws of 1987, is amended to read as
 follows:
   [In] EXCEPT AS OTHERWISE PROVIDED IN SECTION FORTY-FOUR OF THIS  CHAP-
 TER,  IN  determining  the sources of a nonresident partner's income, no
 effect shall be given  to  a  provision  in  the  partnership  agreement
 which--
   §  6.  For  taxable  years  beginning  on or after January 1, 2018 and
 before January 1, 2019, (i) no addition to tax under subsection  (c)  of
 section  685  or  subsection (c) of section 1085 of the tax law shall be
 imposed with respect to any underpayment attributable to the  amendments
 made  by  this  act  of any estimated taxes that are required to be paid
 prior to the effective date of this  act,  provided  that  the  taxpayer
 timely  made  those payments; and (ii) the required installment of esti-
 mated tax described in clause (ii) of subparagraph (B) of paragraph 3 of
 subsection (c) of section 685 of the tax law, and the exception to addi-
 tion for underpayment of estimated tax described in paragraph 1 or 2  of
 subsection  (d)  of  section  1085  of  the  tax law, in relation to the
 preceding year's return, shall be calculated as if the  amendments  made
 by this act had been in effect for that entire preceding year.
   §  7.  This  act  shall take effect upon the enactment into law by the
 states of Connecticut, New Jersey,  Massachusetts  and  Pennsylvania  of
 legislation  having  substantially  the  same effect as this act and the
 enactments by such states have taken effect  in  each  state  and  shall
 apply  for  taxable  years  beginning  on  or after such date; provided,
 however, if the states of Connecticut,  New  Jersey,  Massachusetts  and
 Pennsylvania  have already enacted such legislation, this act shall take
 effect immediately and shall apply for taxable  years  beginning  on  or
 after  January  1, 2018; provided further that the commissioner of taxa-
 tion and finance shall notify the legislative bill  drafting  commission
 upon the enactment of such legislation by the states of Connecticut, New
 Jersey, Massachusetts and Pennsylvania in order that such commission may
 maintain an accurate and timely effective data base of the official text
 of  the laws of the state of New York in furtherance of effectuating the
 provisions of section 44 of the legislative law and section 70-b of  the
 public officers law.
 
                                  PART N

 S. 7509--A                         23                         A. 9509--A
 
   Section  1.  Section 2016 of the tax law, as amended by chapter 401 of
 the laws of 1987, is amended to read as follows:
   § 2016. Judicial review. A decision of the tax appeals tribunal, which
 is  not  subject to any further administrative review, shall finally and
 irrevocably decide all the  issues  which  were  raised  in  proceedings
 before  the  division  of  tax appeals upon which such decision is based
 unless, within four months after notice of such decision  is  served  by
 the  tax appeals tribunal upon every party to the proceeding before such
 tribunal by certified mail  or  personal  service,  the  petitioner  who
 commenced the proceeding [petitions] OR THE COMMISSIONER, OR BOTH, PETI-
 TION for judicial review in the manner provided by article seventy-eight
 of  the  civil  practice  law and rules, except as otherwise provided in
 this [section] CHAPTER.    Such  service  by  certified  mail  shall  be
 complete  upon  deposit of such notice, enclosed in a post-paid properly
 addressed wrapper, in a post office or  official  depository  under  the
 exclusive  care  and custody of the United States postal service.  [The]
 WHERE THE petitioner WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF
 TAX APPEALS FILES A PETITION FOR JUDICIAL  REVIEW,  THE  PETITION  shall
 designate the tax appeals tribunal and the commissioner [of taxation and
 finance]  as  respondents  in the proceeding for judicial review.  WHERE
 THE COMMISSIONER FILES A PETITION  FOR  JUDICIAL  REVIEW,  THE  PETITION
 SHALL  DESIGNATE  THE  TAX  APPEALS  TRIBUNAL  AND  THE  PETITIONER  WHO
 COMMENCED THE PROCEEDING BEFORE THE DIVISION OF TAX APPEALS AS  RESPOND-
 ENTS  IN  THE  PROCEEDING  FOR JUDICIAL REVIEW. The tax appeals tribunal
 shall not participate in proceedings for judicial review  of  its  deci-
 sions and such proceedings for judicial review shall be commenced in the
 appellate  division of the supreme court, third department. In all other
 respects the provisions and standards of article  seventy-eight  of  the
 civil  practice law and rules shall apply.  The record to be reviewed in
 such proceedings for judicial review shall include the determination  of
 the  administrative law judge, the decision of the tax appeals tribunal,
 the stenographic transcript of the hearing before the administrative law
 judge, the transcript of any oral proceedings  before  the  tax  appeals
 tribunal  and  any  exhibit  or  document submitted into evidence at any
 proceeding in the division of tax appeals upon which  such  decision  is
 based.
   §  2.  This act shall take effect immediately and shall apply to deci-
 sions and orders issued by the tax appeals tribunal  on  or  after  such
 date.
 
                                  PART O
 
   Section  1.  Subparagraph  (B)  of  paragraph  1  of subsection (b) of
 section 605 of the tax law, as amended by chapter  28  of  the  laws  of
 1987, is amended to read as follows:
   (B)  who  [is  not  domiciled in this state but] maintains a permanent
 place of abode in this state and spends in the aggregate more  than  one
 hundred  eighty-three days of the taxable year in this state, WHETHER OR
 NOT DOMICILED IN THIS STATE FOR ANY PORTION OF THE TAXABLE YEAR,  unless
 such  individual  is in active service in the armed forces of the United
 States.
   § 2. Paragraph 2 of subsection (a) of section 1305 of the tax law,  as
 amended  by  chapter  225  of  the  laws  of 1977, is amended to read as
 follows:
   (2) who [is not domiciled in such  city  but]  maintains  a  permanent
 place  of  abode  in such city and spends in the aggregate more than one

 S. 7509--A                         24                         A. 9509--A
 
 hundred eighty-three days of the taxable year in such city,  WHETHER  OR
 NOT  DOMICILED  IN THIS CITY FOR ANY PORTION OF THE TAXABLE YEAR, unless
 such individual is in active service in the armed forces of  the  United
 States.
   §  3.  Subparagraph  (B)  of paragraph 1 of subdivision (b) of section
 11-1705 of the administrative code of the city of New York,  as  amended
 by chapter 333 of the laws of 1987, is amended to read as follows:
   (B)  who  [is  not  domiciled  in this city but] maintains a permanent
 place of abode in this city and spends in the aggregate  more  than  one
 hundred  eighty-three  days of the taxable year in this city, WHETHER OR
 NOT DOMICILED IN THIS CITY FOR ANY PORTION OF THE TAXABLE  YEAR,  unless
 such  individual  is in active service in the armed forces of the United
 States.
   § 4. This act shall take effect immediately and  shall  apply  to  all
 taxable  years for which the statute of limitations for seeking a refund
 or assessing additional tax is still open.
 
                                  PART P

   Section 1. Paragraph (1) of subsection (c-1) of section 606 of the tax
 law, as amended by section 1 of part L1 of chapter 109 of  the  laws  of
 2006, is amended to read as follows:
   (1)  A  resident taxpayer shall be allowed a credit as provided herein
 equal to the greater of one hundred dollars times the number of qualify-
 ing children of the taxpayer or the applicable percentage of  the  child
 tax  credit allowed the taxpayer under section twenty-four of the inter-
 nal revenue code for the same taxable year for  each  qualifying  child.
 Provided,  however,  in  the  case  of a taxpayer whose federal adjusted
 gross income exceeds  the  applicable  threshold  amount  set  forth  by
 section  24(b)(2) of the Internal Revenue Code, the credit shall only be
 equal to the applicable percentage of the child tax credit  allowed  the
 taxpayer under section 24 of the Internal Revenue Code for each qualify-
 ing child. For the purposes of this subsection, a qualifying child shall
 be  a  child  who  meets the definition of qualified child under section
 24(c) of the internal revenue code and is at least four  years  of  age.
 The  applicable  percentage shall be thirty-three percent.  FOR PURPOSES
 OF THIS SUBSECTION, ANY REFERENCE TO SECTION 24 OF THE INTERNAL  REVENUE
 CODE  SHALL  BE  A  REFERENCE  TO SUCH SECTION AS IT EXISTED IMMEDIATELY
 PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97.
   § 2. This act shall take effect immediately and shall apply to taxable
 years commencing on or after January 1, 2018.
 
                                  PART Q
 
   Section 1. Paragraphs (a) and (b) of subdivision 29 of  section  210-B
 of  the  tax law, as amended by section 1 of part I of chapter 60 of the
 laws of 2016, are amended to read as follows:
   (a) Allowance of credit. For taxable years beginning on or after Janu-
 ary first, two thousand fifteen and before January first,  two  thousand
 [nineteen]  TWENTY-ONE,  a  taxpayer  shall  be  allowed a credit, to be
 computed as provided in this subdivision, against  the  tax  imposed  by
 this  article,  for hiring and employing, for not less than one year and
 for not less than thirty-five hours each week, a qualified veteran with-
 in the state.  The taxpayer may claim the credit in the  year  in  which
 the  qualified veteran completes one year of employment by the taxpayer.
 If the taxpayer claims the credit allowed under  this  subdivision,  the

 S. 7509--A                         25                         A. 9509--A
 
 taxpayer may not use the hiring of a qualified veteran that is the basis
 for  this  credit  in  the  basis of any other credit allowed under this
 article.
   (b) Qualified veteran. A qualified veteran is an individual:
   (1)  who  served  on  active duty in the United States army, navy, air
 force, marine corps, coast guard or the reserves thereof, or who  served
 in  active military service of the United States as a member of the army
 national guard, air national guard, New York guard  or  New  York  naval
 militia;  who  was  released  from  active  duty by general or honorable
 discharge after September eleventh, two thousand one;
   (2) who commences employment by the qualified  taxpayer  on  or  after
 January  first,  two  thousand  fourteen,  and before January first, two
 thousand [eighteen] TWENTY; and
   (3) who certifies by signed affidavit, under penalty of perjury,  that
 he or she has not been employed for thirty-five or more hours during any
 week  in  the  one hundred eighty day period immediately prior to his or
 her employment by the taxpayer.
   § 2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the  tax
 law,  as  amended  by  section  2 of part I of chapter 60 of the laws of
 2016, are amended to read as follows:
   (1) Allowance of credit. For taxable years beginning on or after Janu-
 ary first, two thousand fifteen and before January first,  two  thousand
 [nineteen]  TWENTY-ONE,  a  taxpayer  shall  be  allowed a credit, to be
 computed as provided in this subsection, against the tax imposed by this
 article, for hiring and employing, for not less than one  year  and  for
 not  less  than  thirty-five hours each week, a qualified veteran within
 the state.  The taxpayer may claim the credit in the year in  which  the
 qualified  veteran  completes one year of employment by the taxpayer. If
 the taxpayer claims  the  credit  allowed  under  this  subsection,  the
 taxpayer may not use the hiring of a qualified veteran that is the basis
 for  this  credit  in  the  basis of any other credit allowed under this
 article.
   (2) Qualified veteran. A qualified veteran is an individual:
   (A) who served on active duty in the United  States  army,  navy,  air
 force,  marine corps, coast guard or the reserves thereof, or who served
 in active military service of the United States as a member of the  army
 national  guard,  air  national  guard, New York guard or New York naval
 militia; who was released from  active  duty  by  general  or  honorable
 discharge after September eleventh, two thousand one;
   (B)  who  commences  employment  by the qualified taxpayer on or after
 January first, two thousand fourteen,  and  before  January  first,  two
 thousand [eighteen] TWENTY; and
   (C)  who certifies by signed affidavit, under penalty of perjury, that
 he or she has not been employed for thirty-five or more hours during any
 week in the one hundred eighty day period immediately prior  to  his  or
 her employment by the taxpayer.
   §  3.  Paragraphs  1 and 2 of subdivision (g-1) of section 1511 of the
 tax law, as amended by section 3 of part I of chapter 60 of the laws  of
 2016, are amended to read as follows:
   (1) Allowance of credit. For taxable years beginning on or after Janu-
 ary  first,  two thousand fifteen and before January first, two thousand
 [nineteen] TWENTY-ONE, a taxpayer shall  be  allowed  a  credit,  to  be
 computed  as  provided  in  this subdivision, against the tax imposed by
 this article, for hiring and employing, for not less than one  year  and
 for not less than thirty-five hours each week, a qualified veteran with-
 in  the  state.   The taxpayer may claim the credit in the year in which

 S. 7509--A                         26                         A. 9509--A
 
 the qualified veteran completes one year of employment by the  taxpayer.
 If  the  taxpayer  claims the credit allowed under this subdivision, the
 taxpayer may not use the hiring of a qualified veteran that is the basis
 for  this  credit  in  the  basis of any other credit allowed under this
 article.
   (2) Qualified veteran. A qualified veteran is an individual:
   (A) who served on active duty in the United  States  army,  navy,  air
 force,  marine corps, coast guard or the reserves thereof, or who served
 in active military service of the United States as a member of the  army
 national  guard,  air  national  guard, New York guard or New York naval
 militia; who was released from  active  duty  by  general  or  honorable
 discharge after September eleventh, two thousand one;
   (B)  who  commences  employment  by the qualified taxpayer on or after
 January first, two thousand fourteen,  and  before  January  first,  two
 thousand [eighteen] TWENTY; and
   (C)  who certifies by signed affidavit, under penalty of perjury, that
 he or she has not been employed for thirty-five or more hours during any
 week in the one hundred eighty day period immediately prior  to  his  or
 her employment by the taxpayer.
   § 4. This act shall take effect immediately.
 
                                  PART R
 
   Section  1.  Subdivision  (c)  of  section  25-a  of the labor law, as
 amended by section 1 of part AA of chapter 56 of the laws  of  2015,  is
 amended to read as follows:
   (c)  A  qualified  employer shall be entitled to a tax credit equal to
 (1) [five] SEVEN hundred FIFTY dollars per month for up  to  six  months
 for  each  qualified employee the employer employs in a full-time job or
 [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six
 months for each qualified employee the employer employs in  a  part-time
 job  of  at  least  twenty hours per week or ten hours per week when the
 qualified employee is enrolled in high school full-time, (2) [one  thou-
 sand]  FIFTEEN  HUNDRED  dollars  for  each  qualified  employee  who is
 employed for at least an additional six CONSECUTIVE months by the quali-
 fied employer in a full-time job or [five] SEVEN hundred  FIFTY  dollars
 for  each  qualified employee who is employed for at least an additional
 six CONSECUTIVE months by the qualified employer in a part-time  job  of
 at  least twenty hours per week or ten hours per week when the qualified
 employee is enrolled in high school full-time,  and  (3)  an  additional
 [one  thousand]  FIFTEEN HUNDRED dollars for each qualified employee who
 is employed for at least an additional year after the [first year of the
 employee's employment] COMPLETION OF THE TIME PERIODS  AND  SATISFACTION
 OF  THE  CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVI-
 SION by the qualified employer  in  a  full-time  job  or  [five]  SEVEN
 hundred FIFTY dollars for each qualified employee who is employed for at
 least an additional year after the [first year of the employee's employ-
 ment]  COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS
 SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVISION by the qualified
 employer in a part-time job of at least twenty hours  per  week  or  ten
 hours  per  week  when the qualified employee is enrolled in high school
 full time. The tax credits shall be claimed by the qualified employer as
 specified in subdivision thirty-six of section  two  hundred  ten-B  and
 subsection (tt) of section six hundred six of the tax law.
   §  2.  Subdivisions (d), (e) and (f) of section 25-a of the labor law,
 subdivisions (d) and (e) as amended by section 1 of subpart A of part  N

 S. 7509--A                         27                         A. 9509--A
 
 of  chapter  59  of  the  laws of 2017 and subdivision (f) as amended by
 section 1 of part AA of chapter 56 of the laws of 2015, are  amended  to
 read as follows:
   (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
 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,
 after January first, two thousand seventeen but no later  than  November
 thirtieth, two thousand seventeen for program five, after January 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 Novem-
 ber thirtieth, two thousand twenty  for  program  eight,  after  January
 first, two thousand twenty-one but no later than November thirtieth, two
 thousand twenty-one for program nine, and after January first, two thou-
 sand twenty-two but no later than November thirtieth, two thousand twen-
 ty-two for program ten. The qualified employees must start their employ-
 ment  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  thou-
 sand  fifteen for program three, on or after January first, two thousand
 sixteen but no later than December thirty-first,  two  thousand  sixteen
 for  program four, on or after January first, two thousand seventeen but
 no later than December thirty-first, two thousand seventeen for  program
 five, on or after January first, two thousand eighteen but no later than
 December  thirty-first,  two  thousand  eighteen  for program six, on or
 after January first, two thousand nineteen but no  later  than  December
 thirty-first, two thousand nineteen for program seven, on or after Janu-
 ary  first, two thousand twenty but no later than December thirty-first,
 two thousand twenty for program eight, on or after  January  first,  two
 thousand  twenty-one  but no later than December thirty-first, two thou-
 sand twenty-one for program nine, and on or  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, ensuring that the process established will minimize any undue
 delay  in  issuing  the certificate of eligibility. Any regulations that
 the commissioner determines are necessary 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 but
 not limited to 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

 S. 7509--A                         28                         A. 9509--A

 employers  who  offer  advancement  and employee benefit packages to the
 qualified individuals.] AS PART OF SUCH APPLICATION, AN EMPLOYER MUST:
   (1) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
 TAX  INFORMATION  WITH THE COMMISSIONER. HOWEVER, ANY INFORMATION SHARED
 AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR  DISCLOSURE  OR
 INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW, AND
   (2)  ALLOW THE COMMISSIONER AND ITS AGENTS AND THE DEPARTMENT OF TAXA-
 TION AND FINANCE AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND  RECORDS
 OF EMPLOYERS THE COMMISSIONER MAY REQUIRE TO MONITOR COMPLIANCE.
   (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 PRELIMINARY certificate of eligibility  that  establishes
 the  employer  as  a  qualified employer. The PRELIMINARY certificate of
 eligibility shall specify the maximum amount  of  tax  credit  that  the
 employer [will] MAY be allowed to claim and the program year under which
 it  [can]  MAY be claimed. THE MAXIMUM AMOUNT OF TAX CREDIT THE EMPLOYER
 IS ALLOWED TO CLAIM SHALL BE COMPUTED AS PRESCRIBED IN  SUBDIVISION  (C)
 OF THIS SECTION.
   (f) The commissioner shall annually publish a report. Such report must
 contain  the  names  and  addresses of any employer issued a PRELIMINARY
 certificate of eligibility  under  this  section,  [and]  the  [maximum]
 amount  of  New  York  youth  works  tax credit allowed to the QUALIFIED
 employer as specified on [such] AN ANNUAL FINAL certificate  of  [eligi-
 bility]  TAX  CREDIT  AND  ANY  OTHER  INFORMATION  AS DETERMINED BY THE
 COMMISSIONER.
   § 3. Section 25-a of the labor law is  amended  by  adding  three  new
 subdivisions (e-1), (e-2) and (e-3) to read as follows:
   (E-1)(1)  TO  RECEIVE  AN  ANNUAL FINAL CERTIFICATE OF TAX CREDIT, THE
 QUALIFIED EMPLOYER MUST ANNUALLY SUBMIT, ON OR  BEFORE  JANUARY  THIRTY-
 FIRST OF THE CALENDAR YEAR SUBSEQUENT TO THE PAYMENT OF WAGES PAID TO AN
 ELIGIBLE EMPLOYEE, A REPORT TO THE COMMISSIONER, IN A FORM PRESCRIBED BY
 THE  COMMISSIONER.  THE  REPORT  MUST  DEMONSTRATE THAT THE EMPLOYER HAS
 SATISFIED ALL ELIGIBILITY REQUIREMENTS AND PROVIDED ALL THE  INFORMATION
 NECESSARY  FOR  THE  COMMISSIONER  TO COMPUTE AN ACTUAL AMOUNT OF CREDIT
 ALLOWED.
   (2) AFTER REVIEWING THE REPORT AND FINDING IT SUFFICIENT, THE  COMMIS-
 SIONER  SHALL  ISSUE  AN  ANNUAL  FINAL  CERTIFICATE OF TAX CREDIT. SUCH
 CERTIFICATE SHALL INCLUDE, IN ADDITION  TO  ANY  OTHER  INFORMATION  THE
 COMMISSIONER DETERMINES IS NECESSARY, THE FOLLOWING INFORMATION:
   (I)  THE  NAME  AND  EMPLOYER  IDENTIFICATION  NUMBER OF THE QUALIFIED
 EMPLOYER;
   (II) THE PROGRAM YEAR FOR THE CORRESPONDING CREDIT AWARD;
   (III) THE ACTUAL AMOUNT OF CREDIT TO WHICH THE QUALIFIED  EMPLOYER  IS
 ENTITLED  FOR  THAT CALENDAR YEAR OR THE FISCAL YEAR IN WHICH THE ANNUAL
 FINAL CERTIFICATE IS ISSUED,  WHICH  ACTUAL  AMOUNT  CANNOT  EXCEED  THE
 AMOUNT  OF  CREDIT LISTED ON THE PRELIMINARY CERTIFICATE BUT MAY BE LESS
 THAN SUCH AMOUNT; AND
   (IV) A UNIQUE CERTIFICATE NUMBER IDENTIFYING THE ANNUAL FINAL  CERTIF-
 ICATE OF TAX CREDIT.
   (E-2)  IN  DETERMINING THE AMOUNT OF CREDIT FOR PURPOSES OF THE ANNUAL
 FINAL CERTIFICATE OF TAX CREDIT, THE PORTION OF THE CREDIT DESCRIBED  IN
 PARAGRAPH  ONE  OF  SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR
 THE CALENDAR YEAR IN WHICH THE WAGES ARE PAID TO THE QUALIFIED EMPLOYEE,
 THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION  (C)
 OF  THIS  SECTION  SHALL  BE  ALLOWED FOR THE CALENDAR YEAR IN WHICH THE

 S. 7509--A                         29                         A. 9509--A
 
 ADDITIONAL SIX CONSECUTIVE MONTH PERIOD ENDS, AND  THE  PORTION  OF  THE
 CREDIT  DESCRIBED  IN PARAGRAPH THREE OF SUBDIVISION (C) OF THIS SECTION
 SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE ADDITIONAL  YEAR  OF
 CONSECUTIVE EMPLOYMENT ENDS AFTER THE COMPLETION OF THE TIME PERIODS AND
 SATISFACTION  OF  THE  CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF
 SUBDIVISION (C) OF THIS SECTION.   IF THE QUALIFIED  EMPLOYER'S  TAXABLE
 YEAR  IS  A  CALENDAR  YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE
 CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF  TAX  CREDIT  ON
 THE  CALENDAR  YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX
 CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A  FISCAL
 YEAR,  THE  EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED
 ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT  ON  THE  RETURN  FOR  THE
 FISCAL  YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIF-
 ICATE OF TAX CREDIT IS ISSUED.
   (E-3) THE COMMISSIONER SHALL ESTABLISH GUIDELINES  AND  CRITERIA  THAT
 SPECIFY REQUIREMENTS FOR EMPLOYERS TO PARTICIPATE IN THE PROGRAM INCLUD-
 ING CRITERIA FOR CERTIFYING QUALIFIED EMPLOYEES, AND ISSUING THE PRELIM-
 INARY  CERTIFICATE  OF  ELIGIBILITY  AND ANNUAL FINAL CERTIFICATE OF TAX
 CREDIT.  ANY REGULATIONS THAT THE COMMISSIONER DETERMINES ARE  NECESSARY
 MAY  BE  ADOPTED  ON  AN EMERGENCY BASIS NOTWITHSTANDING ANYTHING TO THE
 CONTRARY IN SECTION TWO HUNDRED TWO OF THE STATE  ADMINISTRATIVE  PROCE-
 DURE 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 BUT NOT LIMITED TO 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.
   §  4. Paragraph (a) 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:
   (a) A taxpayer that has been certified by the commissioner of labor as
 a qualified employer pursuant to section twenty-five-a of the labor  law
 shall  be allowed a credit against the tax imposed by this article equal
 to (i) [five] SEVEN hundred FIFTY dollars per month for up to six months
 for each qualified employee the employer employs in a full-time  job  or
 [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six
 months  for  each qualified employee the employer employs in a part-time
 job of at least twenty hours per week or ten hours  per  week  when  the
 qualified employee is enrolled in high school full-time, (ii) [one thou-
 sand]  FIFTEEN  HUNDRED  dollars  for  each  qualified  employee  who is
 employed for at least an additional six CONSECUTIVE months by the quali-
 fied employer in a full-time job or [five] SEVEN hundred  FIFTY  dollars
 for  each  qualified employee who is employed for at least an additional
 six CONSECUTIVE months by the qualified employer in a part-time  job  of
 at  least twenty hours per week or ten hours per week when the qualified
 employee is enrolled in high school full-time, and (iii)  an  additional
 [one  thousand]  FIFTEEN HUNDRED dollars for each qualified employee who
 is employed for at least an additional year after the [first year of the
 employee's employment] COMPLETION OF THE TIME PERIODS  AND  SATISFACTION
 OF  THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARA-
 GRAPH by the qualified employer in  a  full-time  job  or  [five]  SEVEN
 hundred FIFTY dollars for each qualified employee who is employed for at
 least an additional year after the [first year of the employee's employ-
 ment]  COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS

 S. 7509--A                         30                         A. 9509--A
 
 SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH by the  quali-
 fied  employer  in  a part-time job of at least twenty hours per week or
 ten hours per week when the  qualified  employee  is  enrolled  in  high
 school  full-time. For purposes of this subdivision, the term "qualified
 employee" shall have the same meaning as set forth in subdivision (b) of
 section twenty-five-a of the  labor  law.  The  portion  of  the  credit
 described in subparagraph (i) of this paragraph shall be allowed for the
 taxable  year in which the wages are paid to the qualified employee, the
 portion of the credit described in subparagraph (ii) of  this  paragraph
 shall  be  allowed in the taxable year in which the additional six month
 period ends, and the portion of the  credit  described  in  subparagraph
 (iii)  of  this  paragraph shall be allowed in the taxable year in which
 the additional year after the first year of employment ends.
   § 5. Paragraph (a) of subdivision 36 of section 210-B of the tax  law,
 as amended by section 4 of this act, is amended to read as follows:
   (a) A taxpayer that has been certified by the commissioner of labor as
 a  qualified employer pursuant to section twenty-five-a of the labor law
 AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS-
 SIONER shall be allowed a credit against the tax imposed by this article
 equal to [(i) seven hundred fifty dollars per month for up to six months
 for each qualified employee the employer employs in a full-time  job  or
 three  hundred  seventy-five  dollars per month for up to six months for
 each qualified employee the employer employs in a part-time  job  of  at
 least  twenty  hours  per  week or ten hours per week when the qualified
 employee is enrolled in high  school  full-time,  (ii)  fifteen  hundred
 dollars  for  each  qualified  employee  who is employed for at least an
 additional six consecutive months by the qualified employer in  a  full-
 time  job or seven hundred fifty dollars for each qualified employee who
 is employed for at least an additional six  consecutive  months  by  the
 qualified  employer in a part-time job of at least twenty hours per week
 or ten hours per week when the qualified employee is  enrolled  in  high
 school  full-time,  and  (iii) an additional fifteen hundred dollars for
 each qualified employee who is employed for at least an additional  year
 after  the completion of the time periods and satisfaction of the condi-
 tions set forth in subparagraphs (i) and (ii) of this paragraph  by  the
 qualified employer in a full-time job or seven hundred fifty dollars for
 each  qualified employee who is employed for at least an additional year
 after the completion of the time periods and satisfaction of the  condi-
 tions  set  forth in subparagraphs (i) and (ii) of this paragraph by the
 qualified employer in a part-time job of at least twenty hours per  week
 or  ten  hours  per week when the qualified employee is enrolled in high
 school full-time. For purposes of this subdivision, the term  "qualified
 employee" shall have the same meaning as set forth in subdivision (b) of
 section  twenty-five-a  of  the  labor  law.  The  portion of the credit
 described in subparagraph (i) of this paragraph shall be allowed for the
 taxable year in which the wages are paid to the qualified employee,  the
 portion  of  the credit described in subparagraph (ii) of this paragraph
 shall be allowed in the taxable year in which the additional  six  month
 period  ends,  and  the  portion of the credit described in subparagraph
 (iii) of this paragraph shall be allowed in the taxable  year  in  which
 the  additional year after the first year of employment ends] THE AMOUNT
 LISTED ON THE ANNUAL FINAL CERTIFICATE  OF  TAX  CREDIT  ISSUED  BY  THE
 COMMISSIONER  OF  LABOR  PURSUANT  TO SECTION TWENTY-FIVE-A OF THE LABOR
 LAW.  IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR  YEAR,  THE
 EMPLOYER  SHALL  BE  ENTITLED  TO  CLAIM THE CREDIT AS CALCULATED ON THE
 ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR  RETURN  FOR

 S. 7509--A                         31                         A. 9509--A
 
 WHICH  THE  ANNUAL  FINAL  CERTIFICATE  OF TAX CREDIT WAS ISSUED. IF THE
 QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE  EMPLOYER  SHALL
 BE  ENTITLED  TO  CLAIM  THE  CREDIT  AS  CALCULATED ON THE ANNUAL FINAL
 CERTIFICATE  OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOM-
 PASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX  CREDIT  IS
 ISSUED.  FOR  THE  PURPOSES  OF  THIS  SUBDIVISION,  THE TERM "QUALIFIED
 EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF
 SECTION TWENTY-FIVE-A OF THE LABOR LAW.
   § 6. Paragraph (c) of subdivision 36 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:
   (c) The taxpayer [may] SHALL be required to attach to its  tax  return
 its  ANNUAL  FINAL certificate of [eligibility] TAX CREDIT issued by the
 commissioner of labor pursuant to section  twenty-five-a  of  the  labor
 law. In no event shall the taxpayer be allowed a credit greater than the
 amount  of  the credit listed on the ANNUAL FINAL certificate of [eligi-
 bility] TAX CREDIT.  Notwithstanding any provision of  this  chapter  to
 the  contrary,  the  commissioner  and  the commissioner's designees may
 release the names and addresses of any taxpayer claiming this credit and
 the amount of the credit earned by the taxpayer.  Provided, however,  if
 a  taxpayer  claims  this  credit  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.
   § 7. Paragraph 1 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:
   (1) A taxpayer that has been certified by the commissioner of labor as
 a qualified employer pursuant to section twenty-five-a of the labor  law
 shall  be allowed a credit against the tax imposed by this article equal
 to (A) [five] SEVEN hundred FIFTY dollars per month for up to six months
 for each qualified employee the employer employs in a full-time  job  or
 [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six
 months  for  each qualified employee the employer employs in a part-time
 job of at least twenty hours per week or ten hours  per  week  when  the
 qualified  employee  is  enrolled in high school full-time, and (B) [one
 thousand] FIFTEEN HUNDRED dollars for each  qualified  employee  who  is
 employed for at least an additional six CONSECUTIVE months by the quali-
 fied  employer  in a full-time job or [five] SEVEN hundred FIFTY dollars
 for each qualified employee who is employed for at least  an  additional
 six  CONSECUTIVE  months by the qualified employer in a part-time job of
 at least twenty hours per week or ten hours per week when the  qualified
 employee  is  enrolled  in  high school full-time, and (C) an additional
 [one thousand] FIFTEEN HUNDRED dollars for each qualified  employee  who
 is employed for at least an additional year after the [first year of the
 employee's  employment]  COMPLETION OF THE TIME PERIODS AND SATISFACTION
 OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS  SUBSECTION
 by  the  qualified  employer  in a full-time job or [five] SEVEN hundred
 FIFTY dollars for each qualified employee who is employed for  at  least
 an  additional  year after the [first year of the employee's employment]
 COMPLETION OF THE TIME PERIODS AND SATISFACTION OF  THE  CONDITIONS  SET
 FORTH  IN  SUBPARAGRAPHS  A  AND  B  OF THIS SUBSECTION by the qualified
 employer in a part-time job of at least twenty hours  per  week  or  ten
 hours  per  week  when the qualified employee is enrolled in high school
 full-time. A taxpayer that is a partner in a partnership,  member  of  a
 limited  liability  company  or shareholder in an S corporation that has

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 been certified by the commissioner of  labor  as  a  qualified  employer
 pursuant  to section twenty-five-a of the labor law shall be allowed its
 pro rata share of the credit earned by the partnership, limited  liabil-
 ity  company or S corporation. For purposes of this subsection, the term
 "qualified employee" shall have the same meaning as set forth in  subdi-
 vision (b) of section twenty-five-a of the labor law. The portion of the
 credit  described in subparagraph (A) of this paragraph shall be allowed
 for the taxable year in which  the  wages  are  paid  to  the  qualified
 employee,  the  portion  of  the credit described in subparagraph (B) of
 this paragraph shall be allowed in the taxable year in which  the  addi-
 tional six month period ends, and the portion of the credit described in
 subparagraph  (C) of this paragraph shall be allowed in the taxable year
 in which the additional year after the first year of employment ends.
   § 8. Paragraph 1 of subsection (tt) of section 606 of the tax law,  as
 amended by section 7 of this act, is amended to read as follows:
   (1) A taxpayer that has been certified by the commissioner of labor as
 a  qualified employer pursuant to section twenty-five-a of the labor law
 AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS-
 SIONER shall be allowed a credit against the tax imposed by this article
 equal to [(A) seven hundred fifty dollars per month for up to six months
 for each qualified employee the employer employs in a full-time  job  or
 three  hundred  seventy-five  dollars per month for up to six months for
 each qualified employee the employer employs in a part-time  job  of  at
 least  twenty  hours  per  week or ten hours per week when the qualified
 employee is enrolled in high school full-time, and (B)  fifteen  hundred
 dollars  for  each  qualified  employee  who is employed for at least an
 additional six consecutive months by the qualified employer in  a  full-
 time  job or seven hundred fifty dollars for each qualified employee who
 is employed for at least an additional six  consecutive  months  by  the
 qualified  employer in a part-time job of at least twenty hours per week
 or ten hours per week when the qualified employee is  enrolled  in  high
 school full-time, and (C) an additional fifteen hundred dollars for each
 qualified employee who is employed for at least an additional year after
 the  completion  of  the time periods and satisfaction of the conditions
 set forth in subparagraphs A and B of this subsection by  the  qualified
 employer  in  a  full-time  job  or seven hundred fifty dollars for each
 qualified employee who is employed for at least an additional year after
 the completion of the time periods and satisfaction  of  the  conditions
 set  forth  in subparagraphs A and B of this subsection by the qualified
 employer in a part-time job of at least twenty hours  per  week  or  ten
 hours  per  week  when the qualified employee is enrolled in high school
 full-time] THE AMOUNT LISTED ON THE  ANNUAL  FINAL  CERTIFICATE  OF  TAX
 CREDIT  ISSUED  BY THE COMMISSIONER OF LABOR PURSUANT TO SECTION TWENTY-
 FIVE-A OF THE LABOR LAW. A taxpayer that is a partner in a  partnership,
 member of a limited liability company or shareholder in an S corporation
 that  has  [been  certified by] RECEIVED ITS ANNUAL FINAL CERTIFICATE OF
 TAX CREDIT FROM the commissioner of labor as a qualified employer pursu-
 ant to section twenty-five-a of the labor law shall be allowed  its  pro
 rata  share  of  the credit earned by the partnership, limited liability
 company or S corporation. [For purposes of  this  subsection,  the  term
 "qualified  employee" shall have the same meaning as set forth in subdi-
 vision (b) of section twenty-five-a of the labor law. The portion of the
 credit described in subparagraph (A) of this paragraph shall be  allowed
 for  the  taxable  year  in  which  the  wages are paid to the qualified
 employee, the portion of the credit described  in  subparagraph  (B)  of
 this  paragraph  shall be allowed in the taxable year in which the addi-

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 tional six month period ends, and the portion of the credit described in
 subparagraph (C) of this paragraph shall be allowed in the taxable  year
 in  which  the additional year after the first year of employment ends.]
 IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOY-
 ER  SHALL  BE  ENTITLED  TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL
 FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR  RETURN  FOR  WHICH
 THE  ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED
 EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED
 TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX
 CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES  THE  DATE  ON
 WHICH  THE  ANNUAL  FINAL  CERTIFICATE OF TAX CREDIT IS ISSUED.  FOR THE
 PURPOSES OF THIS SUBSECTION, THE TERM "QUALIFIED  EMPLOYEE"  SHALL  HAVE
 THE   SAME   MEANING   AS  SET  FORTH  IN  SUBDIVISION  (B)  OF  SECTION
 TWENTY-FIVE-A OF THE LABOR LAW.
   § 9. Paragraph 3 of subsection (tt) of section 606 of the tax law,  as
 added  by  section  3  of  part  D of chapter 56 of the laws of 2011, is
 amended to read as follows:
   (3) The taxpayer [may] SHALL be required to attach to its  tax  return
 its  ANNUAL  FINAL certificate of [eligibility] TAX CREDIT issued by the
 commissioner of labor pursuant to section  twenty-five-a  of  the  labor
 law. In no event shall the taxpayer be allowed a credit greater than the
 amount  of  the credit listed on the ANNUAL FINAL certificate of [eligi-
 bility] TAX CREDIT. Notwithstanding any provision of this chapter to the
 contrary, the commissioner and the commissioner's designees may  release
 the  names  and  addresses  of any taxpayer claiming this credit and the
 amount of the credit earned by the taxpayer.   Provided, however,  if  a
 taxpayer  claims this credit because it is a member of a limited liabil-
 ity company, a partner in a partnership, or a shareholder in a  subchap-
 ter  S  corporation,  only the amount of credit earned by the entity and
 not the amount of credit claimed by the taxpayer may be released.
   § 10. This act shall take effect immediately,  provided  however  that
 (i)  section  one  of  this act shall apply to tax years beginning on or
 after January 1, 2018; (ii) sections four and seven of  this  act  shall
 apply  to  tax  years  beginning  on or after January 1, 2018 and before
 January 1, 2019; and (iii) sections two, three, five,  six,  eight,  and
 nine  of  this  act shall take effect January 1, 2019 and shall apply to
 tax years beginning on or after January 1, 2019.
 
                                  PART S
 
   Section 1. Section 33 of the tax law, as added by section 1 of part  Y
 of chapter 57 of the laws of 2010, is amended to read as follows:
   §  33.  Temporary  deferral of certain tax credits. 1. (a) For taxable
 years beginning on or after January first, two thousand  [ten]  EIGHTEEN
 and before January first, two thousand [thirteen] TWENTY-ONE, the excess
 over  two  million dollars of the total amount of the tax credits speci-
 fied in subdivision three of this section that in each of those  taxable
 years  would otherwise be used to reduce the taxpayer's tax liability to
 the amount otherwise specified in this chapter or be refunded or credit-
 ed as an overpayment will be deferred to and used or refunded in taxable
 years beginning on or after January first, two thousand [thirteen] TWEN-
 TY-ONE in accordance with the provisions of section thirty-four of  this
 article. Interest shall not be paid on the amounts of credit deferred.
   (b) To determine the amount of each tax credit allowed for the taxable
 year  to  be  used,  refunded or credited as an overpayment the taxpayer
 shall multiply the amount of each credit subject to deferral that  would

 S. 7509--A                         34                         A. 9509--A
 
 have been used, refunded or credited as an overpayment in the absence of
 this  section  by  a  fraction,  the  numerator  of which is two million
 dollars, and the denominator of which is the total amount of the taxpay-
 er's  credits  subject to deferral pursuant to subdivision three of this
 section that would have been used, refunded or credited as  an  overpay-
 ment for the taxable year in the absence of this section. The product is
 the  amount  of  such  credit  that  is not subject to deferral and thus
 allowed to be used, refunded or credited as an overpayment for the taxa-
 ble year.
   2. Taxpayers shall calculate  and  make  any  estimated  tax  payments
 required  to  be  made  by  taking  into account the deferral of credits
 required by this section. Taxpayers shall calculate any mandatory  first
 installment payments made on or after the effective date of this section
 as  if  the  deferral  of  credits  required by this section had been in
 effect for the taxable year upon which that  installment  is  based.  In
 addition,  for  taxable  years  beginning on or after January first, two
 thousand [ten] EIGHTEEN and before January first, two thousand  [eleven]
 NINETEEN,  (a)  no  addition  to tax under subsection (c) of section six
 hundred eighty-five of this chapter or subsection  (c)  of  section  one
 thousand  eighty-five  of  this chapter shall be imposed with respect to
 any underpayment attributable to the deferral required by  this  section
 of  any estimated taxes that are required to be paid prior to the enact-
 ment of this section, provided  that  the  taxpayer  timely  made  those
 payments; and (b) the required installment of estimated tax described in
 clause  (ii) of subparagraph (B) of paragraph three of subsection (c) of
 section six hundred eighty-five of this chapter, and  the  exception  to
 addition for underpayment of estimated tax described in paragraph one or
 two  of subsection (d) of section one thousand eighty-five of this chap-
 ter, in relation to the preceding year's return, shall be calculated  as
 if  the  deferral  required  by this section had been in effect for that
 entire preceding year.
   3. (a) This section shall apply  to  the  credits  allowed  under  the
 following  provisions in article nine-a of this chapter and any applica-
 ble counterpart provisions in articles  nine,  twenty-two,  [thirty-two]
 and thirty-three of this chapter:
   Section [210(12)] 210-B(1) investment tax credit
   Section [210(12-B)] 210-B(3) empire zone investment tax credit
   Section [210(12-C)] 210-B(4) empire zone employment incentive credit
   Section [210(12-D)] 210-B(2) employment incentive credit
   Section [210(12-E)] 210-B(7) QETC employment credit
   Section [210(12-F)] 210-B(8) QETC capital tax credit
   [Section 210(12-G) QETC facilities, operations, and training credit]
   Section  [210(17)]  210-B(9) special additional mortgage recording tax
 credit
   [Section 210(19) empire zone wage tax credit
   Section 210(20) empire zone capital tax credit]
   Section [210(21-a)] 210-B(10) credit for servicing certain mortgages
   Section [210(23)] 210-B(12) credit  for  employment  of  persons  with
 disabilities
   Section  [210(24)]  210-B(30)  alternative  fuels AND ELECTRIC VEHICLE
 RECHARGING PROPERTY credit
   Section [210(25)]  210-B(13)  credit  for  purchase  of  an  automated
 external defibrillator
   Section [210(27)] 210-B(5) QEZE credit for real property taxes
   Section [210(28)] 210-B(6) QEZE tax reduction credit
   Section [210(30)] 210-B(15) low income housing credit

 S. 7509--A                         35                         A. 9509--A
 
   Section [210(31)] 210-B(16) green building credit
   Section [210(33)] 210-B(17) brownfield redevelopment tax credit
   Section  [210(34)]  210-B(18)  remediated  brownfield  credit for real
 property taxes for qualified sites
   Section [210(35)] 210-B(19) environmental remediation insurance credit
   Section [210(37)] 210-B(21) security training tax credit
   [Section 210(37) credit for fuel cell  electric  generating  equipment
 expenditures]
   Section [210(38)] 210-B(22) conservation easement tax credit
   [Section 210(38) empire state commercial production credit]
   Section [210(38)] 210-B(24) biofuel production credit
   Section [210(39)] 210-B(25) clean heating fuel credit
   Section  [210(40)]  210-B(26)  credit  for  rehabilitation of historic
 properties
   Section [210(40)] 210-B(38) credit for companies who provide transpor-
 tation to individuals with disabilities
   SECTION 210-B(11) AGRICULTURAL PROPERTY TAX CREDIT
   SECTION 210-B(35) ECONOMIC TRANSFORMATION AND  FACILITY  REDEVELOPMENT
 CREDIT
   SECTION 210-B(39) ALCOHOLIC BEVERAGE PRODUCTION CREDIT
   SECTION 210-B(40) MINIMUM WAGE REIMBURSEMENT CREDIT
   SECTION 210-B(41) THE TAX-FREE NY AREA TAX ELIMINATION CREDIT
   SECTION 210-B(43) REAL PROPERTY TAX CREDIT FOR MANUFACTURERS
   SECTION 210-B(44) THE TAX-FREE NY AREA EXCISE TAX ON TELECOMMUNICATION
 SERVICES CREDIT
   SECTION 210-B(47) MUSICAL AND THEATRICAL PRODUCTION CREDIT
   SECTION 210-B(48) WORKERS WITH DISABILITIES TAX CREDIT
   SECTION 210-B(51) FARM WORKFORCE RETENTION CREDIT
   (b)  This  section  shall  also  apply  to  the credits allowed by the
 following sections:
   [Section 186-a(9) power for jobs credit]
   Section 606(g-1) solar energy system equipment credit
   Section 606(pp) historic homeownership rehabilitation credit
   Section 1511(k) credit for certain investments  in  certified  capital
 companies
   §  2.  Subdivisions  1 and 2 of section 34 of the tax law, as added by
 section 2 of part Y of chapter 57 of the laws of 2010,  are  amended  to
 read as follows:
   1.  The amounts of nonrefundable credits that are deferred pursuant to
 section thirty-three of this article in taxable years  beginning  on  or
 after  January  first,  two  thousand  [ten] EIGHTEEN and before January
 first, two thousand  [thirteen]  TWENTY-ONE  shall  be  accumulated  and
 constitute  the taxpayer's temporary deferral nonrefundable payout cred-
 it. The taxpayer may first claim this credit in the taxable year  begin-
 ning  on  or after January first, two thousand [thirteen] TWENTY-ONE and
 before January first, two thousand [fourteen] TWENTY-TWO.  The  taxpayer
 shall  be allowed to claim this credit until the accumulated amounts are
 exhausted. The credit shall be allowed against  the  taxpayer's  tax  as
 provided  in  the  provisions referenced in paragraph (a) of subdivision
 three of this section.
   2. The amounts of refundable credits that  are  deferred  pursuant  to
 section  thirty-three  of  this article in taxable years beginning on or
 after January first, two thousand  [ten]  EIGHTEEN  and  before  January
 first,  two  thousand  [thirteen]  TWENTY-ONE  shall  be accumulated and
 constitute the taxpayer's temporary deferral refundable  payout  credit.
 In  the  taxable  year beginning on or after January first, two thousand

 S. 7509--A                         36                         A. 9509--A
 
 [thirteen] TWENTY-ONE and before January first, two thousand  [fourteen]
 TWENTY-TWO,  the  taxpayer  shall  be allowed to claim a credit equal to
 fifty percent of the amount accumulated. In the taxable  year  beginning
 on or after January first, two thousand [fourteen] TWENTY-TWO and before
 January  first,  two thousand [fifteen] TWENTY-THREE, the taxpayer shall
 be allowed to claim a  credit  equal  to  seventy-five  percent  of  the
 balance  of  the amount accumulated. In the taxable year beginning on or
 after January first, two  thousand  [fifteen]  TWENTY-THREE  and  before
 January first, two thousand [sixteen] TWENTY-FOUR, the taxpayer shall be
 allowed  to  claim a credit equal to the remaining balance of the amount
 accumulated. The credit shall be allowed against the taxpayer's  tax  as
 provided  in  the  provisions referenced in paragraph (b) of subdivision
 three of this section.
   § 3. This act shall take effect immediately.
 
                                  PART T
 
   Section 1. Subdivision (a) of section 1412 of the tax law, as added by
 chapter 61 of the laws of 1989, is amended to read as follows:
   (a) A grantor or grantee claiming to have  erroneously  paid  the  tax
 imposed  by this article or some other person designated by such grantor
 or grantee may file an application for refund within [two]  THREE  years
 from  the  date  of  payment.  Such  application shall be filed with the
 commissioner [of  taxation  and  finance]  on  a  form  which  he  shall
 prescribe.
   §  2.  Subdivision  (b)  of section 1402-a of the tax law, as added by
 chapter 61 of the laws of 1989, is amended to read as follows:
   (b) Notwithstanding the provisions of subdivision (a) of section four-
 teen hundred four of this article, the additional tax  imposed  by  this
 section  shall  be  paid  by the grantee. If the grantee [is exempt from
 such tax, the grantor shall have the duty to pay the tax] HAS FAILED  TO
 PAY  THE  TAX  IMPOSED  BY  THIS ARTICLE AT THE TIME REQUIRED BY SECTION
 FOURTEEN HUNDRED TEN OF THIS ARTICLE OR IF THE GRANTEE  IS  EXEMPT  FROM
 SUCH  TAX,  THE  GRANTOR  SHALL  HAVE THE DUTY TO PAY THE TAX. WHERE THE
 GRANTOR HAS THE DUTY TO PAY THE TAX BECAUSE THE GRANTEE  HAS  FAILED  TO
 PAY,  SUCH  TAX  SHALL BE THE JOINT AND SEVERAL LIABILITY OF THE GRANTOR
 AND THE GRANTEE.
   § 3. This act shall take effect immediately; provided,  however,  that
 section two of this act shall apply to conveyances occurring on or after
 the fifteenth day after this act shall have become a law.
 
                                  PART U
 
   Section  1.  Subdivision  6 of section 470 of the tax law, as added by
 chapter 61 of the laws of 1989, is amended to read as follows:
   6. "Wholesale price." The [established]  INVOICE  price  for  which  a
 manufacturer  OR  OTHER  PERSON sells tobacco products to a distributor,
 INCLUDING THE FEDERAL EXCISE TAXES PAID BY  THE  MANUFACTURER  OR  OTHER
 PERSON, before the allowance of any discount, trade allowance, rebate or
 other reduction.
   [In the absence of such an established price, a manufacturer's invoice
 price of any tobacco product shall be presumptive evidence of the whole-
 sale  price  of  such  tobacco  product, and in its absence the price at
 which such tobacco products were purchased shall be presumed to  be  the
 wholesale  price,  unless  evidence  of a lower wholesale price shall be

 S. 7509--A                         37                         A. 9509--A

 established or any industry standard of markups relating to the purchase
 price in relation to the wholesale price shall be established.]
   §  2.  This act shall take effect on September 1, 2018 and shall apply
 to all tobacco products possessed in this state for  sale  on  or  after
 such date.

                                  PART V
 
   Section  1.  Subparagraph  (A)  of  paragraph  1 of subdivision (b) of
 section 1105 of the tax law, as amended by section 9 of part S of  chap-
 ter 85 of the laws of 2002, is amended to read as follows:
   (A)  gas,  electricity,  refrigeration  and  steam, and gas, electric,
 refrigeration and steam service of whatever nature, INCLUDING THE TRANS-
 PORTATION, TRANSMISSION OR DISTRIBUTION OF GAS OR ELECTRICITY,  EVEN  IF
 SOLD SEPARATELY;
   § 2. Section 1105-C of the tax law is REPEALED.
   §  3.  Subparagraph  (xi) of paragraph 4 of subdivision (a) of section
 1210 of the tax law, as amended by section 2 of part WW of chapter 60 of
 the laws of 2016, is amended to read as follows:
   (xi) [shall provide that section eleven hundred five-C of this chapter
 does not apply to such taxes, and] shall tax receipts from  every  sale,
 other than sales for resale, of gas service or electric service of what-
 ever  nature, including the transportation, transmission or distribution
 of gas or electricity, even if sold separately, at the rate set forth in
 clause one of subparagraph (i) of the opening paragraph of this section;
   § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis-
 trative code of the city of New York, as amended by chapter 200  of  the
 laws of 2009, is amended to read as follows:
   (8)  [makes inapplicable section eleven hundred five-C of the tax law,
 and] imposes tax on receipts from  every  sale,  other  than  sales  for
 resale, of gas service or electric service of whatever nature, including
 the  transportation, transmission or distribution of gas or electricity,
 even if sold separately, at the rate set forth  in  subdivision  (a)  of
 this section.
   §  5.  This  act  shall take effect immediately; provided however that
 this act shall apply to sales made and services rendered  on  and  after
 June 1, 2018 whether or not such sales and services are rendered under a
 prior contract.
 
                                  PART W
 
   Section  1. Subdivision (f) of section 1115 of the tax law, as amended
 by chapter 205 of the laws of 1968, is amended to read as follows:
   (f) (1) Services rendered by a veterinarian licensed and registered as
 required by the education law which constitute the practice  of  veteri-
 nary  medicine  as  defined  in  said law, including hospitalization for
 which no separate boarding charge is made, shall not be subject  to  tax
 under  paragraph  (3) of subdivision (c) of section eleven hundred five,
 but the exemption allowed by this subdivision shall not apply  to  other
 services  provided  by a veterinarian to pets and other animals, includ-
 ing, but not limited to, boarding, grooming and  clipping.  Articles  of
 tangible  personal  property designed for use in some manner relating to
 domestic animals or poultry, when sold by such a veterinarian, shall not
 be subject to tax under subdivision (a) of section eleven  hundred  five
 or under section eleven hundred ten. However, the sale of any such arti-
 cles of tangible personal property to a veterinarian shall not be deemed

 S. 7509--A                         38                         A. 9509--A
 
 a  sale  for  resale  within  the meaning of [pargraph] PARAGRAPH (4) of
 subdivision (b) of section eleven hundred one and shall  not  be  exempt
 from retail sales tax.
   (2)  DRUGS  OR  MEDICINE  SOLD TO OR USED BY A VETERINARIAN FOR USE IN
 RENDERING SERVICES THAT ARE EXEMPT PURSUANT TO  PARAGRAPH  ONE  OF  THIS
 SUBDIVISION  TO  LIVESTOCK OR POULTRY USED IN THE PRODUCTION FOR SALE OF
 TANGIBLE PERSONAL PROPERTY BY FARMING, OR SOLD TO  A  PERSON  QUALIFYING
 FOR  THE  EXEMPTION  PROVIDED FOR IN PARAGRAPH SIX OF SUBDIVISION (A) OF
 THIS SECTION FOR USE BY SUCH PERSON ON SUCH LIVESTOCK OR POULTRY.
   § 2. Subdivision (a) of section 1119 of the tax  law,  as  amended  by
 chapter  686 of the laws of 1986 and as further amended by section 15 of
 part GG of chapter 63 of the  laws  of  2000,  is  amended  to  read  as
 follows:
   (a)  Subject  to the conditions and limitations provided for herein, a
 refund or credit shall be allowed for a tax paid pursuant to subdivision
 (a) of section eleven hundred five or section eleven hundred ten (1)  on
 the  sale or use of tangible personal property if the purchaser or user,
 in the performance of  a  contract,  later  incorporates  that  tangible
 personal  property into real property located outside this state, (2) on
 the sale or use of tangible personal property purchased in bulk, or  any
 portion  thereof,  which is stored and not used by the purchaser or user
 within this state if that property is  subsequently  reshipped  by  such
 purchaser  or  user  to  a point outside this state for use outside this
 state, (3) on the sale to or use by a  contractor  or  subcontractor  of
 tangible personal property if that property is used by him solely in the
 performance  of  a  pre-existing  lump  sum  or  unit price construction
 contract, (4) on the sale or use within this state of tangible  personal
 property,  not purchased for resale, if the use of such property in this
 state is restricted to fabricating such property (including  incorporat-
 ing  it  into  or  assembling it with other tangible personal property),
 processing, printing or imprinting such property and  such  property  is
 then  shipped  to a point outside this state for use outside this state,
 [(5) on the sale to or use by a veterinarian of  drugs  or  medicine  if
 such  drugs  or  medicine  are  used  by  such veterinarian in rendering
 services, which are exempt pursuant to subdivision (f) of section eleven
 hundred fifteen of this chapter, to livestock or  poultry  used  in  the
 production  for sale of tangible personal property by farming or if such
 drugs or medicine are sold to a  person  qualifying  for  the  exemption
 provided  for  in  paragraph  (6)  of  subdivision (a) of section eleven
 hundred fifteen of this chapter for use by such person on such livestock
 or poultry,] or (6) on the sale of tangible personal property  purchased
 for  use  in  constructing,  expanding  or  rehabilitating industrial or
 commercial real property (other than property used or to be used  exclu-
 sively by one or more registered vendors primarily engaged in the retail
 sale  of tangible personal property) located in an area designated as an
 empire zone pursuant to article eighteen-B of the general municipal law,
 but only to the extent that such property becomes an integral  component
 part of the real property. (For the purpose of clause (3) of the preced-
 ing sentence, the term "pre-existing lump sum or unit price construction
 contract"  shall mean a contract for the construction of improvements to
 real property under which  the  amount  payable  to  the  contractor  or
 subcontractor  is  fixed  without regard to the costs incurred by him in
 the performance thereof, and which  (i)  was  irrevocably  entered  into
 prior to the date of the enactment of this article or the enactment of a
 law  increasing  the  rate  of  tax  imposed under this article, or (ii)
 resulted from the acceptance by a governmental agency of a bid  accompa-

 S. 7509--A                         39                         A. 9509--A
 
 nied  by  a  bond  or  other  performance guaranty which was irrevocably
 submitted prior to such date.) Where the tax on the sale or use of  such
 tangible  personal  property has been paid to the vendor, to qualify for
 such  refund or credit, such tangible personal property must be incorpo-
 rated into real property as required in clause (1) above,  reshipped  as
 required  in  clause  (2) above, used in the manner described in clauses
 (3), (4)[, (5)] and (6) above within three years after the date such tax
 was payable to the tax commission by  the  vendor  pursuant  to  section
 eleven  hundred  thirty-seven.  Where the tax on the sale or use of such
 tangible personal property was paid by the applicant for the  credit  or
 refund  directly  to  the  tax commission, to qualify for such refund or
 credit, such tangible personal property must be incorporated  into  real
 property  as  required  in  clause  (1)  above, reshipped as required in
 clause (2) above, used in the manner described  in  clauses  (3),  (4)[,
 (5)]  and (6) above within three years after the date such tax was paya-
 ble to the tax commission by such applicant pursuant to this article. An
 application for a refund or credit pursuant  to  this  section  must  be
 filed  with  such commission within the time provided by subdivision (a)
 of section eleven hundred thirty-nine. Such application shall be in such
 form as the tax commission may prescribe. Where an application for cred-
 it has been filed, the applicant may immediately take such credit on the
 return which is due coincident with or  immediately  subsequent  to  the
 time  that  he  files his application for credit. However, the taking of
 the credit on the return shall be deemed to be part of  the  application
 for credit and shall be subject to the provisions in respect to applica-
 tions  for  credit  in section eleven hundred thirty-nine as provided in
 subdivision (e) of such section. With respect to a sale or use described
 in clause (3)  above  where  a  pre-existing  lump  sum  or  unit  price
 construction  contract was irrevocably entered into prior to the date of
 the enactment of this article or the bid accompanied by the  performance
 guaranty  was  irrevocably submitted to the governmental agency prior to
 such date, the purchaser or user shall be entitled to a refund or credit
 only of the amount by which the tax on such sale or  use  imposed  under
 this  article  plus any tax imposed under the authority of article twen-
 ty-nine exceeds the amount computed by applying against such sale or use
 the local rate of tax, if any, in effect at the time such  contract  was
 entered into or such bid was submitted.
   In  the  case  of  the  enactment  of a law increasing the rate of tax
 imposed by this article, the purchaser or user shall be entitled only to
 a refund or credit of the amount by which the increased tax on such sale
 or use imposed under this article plus any tax imposed under the author-
 ity of article twenty-nine  exceeds  the  amount  computed  by  applying
 against  such  sale or use the state and local rates of tax in effect at
 the time such contract was entered into or such bid was submitted.
   § 3. This act shall take effect June 1, 2018, and shall apply to sales
 made and uses occurring on and after such date.
 
                                  PART X
 
   Section 1. Subdivision 1 of section 1131 of the tax law, as amended by
 chapter 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. Said terms shall also include any officer,
 director or employee of a corporation or of a dissolved corporation, any

 S. 7509--A                         40                         A. 9509--A
 
 employee of a partnership, any employee or manager of a limited  liabil-
 ity company, or any employee of an individual proprietorship who as such
 officer,  director,  employee or manager is under a duty to act for such
 corporation,   partnership,  limited  liability  company  or  individual
 proprietorship in complying with any requirement of this article, OR HAS
 SO ACTED; 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.
   §  2.  Subdivision  (a)  of section 1133 of the tax law, as amended by
 chapter 621 of the laws of 1967, is amended to read as follows:
   (a) (1) Except as otherwise provided in PARAGRAPH TWO OF THIS SUBDIVI-
 SION AND IN section eleven hundred  thirty-seven  OF  THIS  PART,  every
 person  required  to  collect  any  tax imposed by this article shall be
 personally liable for the tax  imposed,  collected  or  required  to  be
 collected  under this article. Any such person shall have the same right
 in respect to collecting the tax from his  customer  or  in  respect  to
 nonpayment  of  the tax by the customer as if the tax were a part of the
 purchase price of the property or service, amusement charge or rent,  as
 the  case  may be, and payable at the same time; provided, however, that
 the tax commission shall be joined as a party in any action or  proceed-
 ing brought to collect the tax.
   (2)  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  THIS ARTICLE: (I) THE
 COMMISSIONER SHALL GRANT THE RELIEF DESCRIBED IN SUBPARAGRAPH  (III)  OF
 THIS  PARAGRAPH TO A LIMITED PARTNER OF A LIMITED PARTNERSHIP (BUT NOT A
 PARTNER OF A LIMITED LIABILITY PARTNERSHIP) OR A  MEMBER  OF  A  LIMITED
 LIABILITY  COMPANY IF SUCH LIMITED PARTNER OR MEMBER DEMONSTRATES TO THE
 SATISFACTION OF THE COMMISSIONER THAT SUCH LIMITED PARTNER'S OR MEMBER'S
 OWNERSHIP INTEREST AND THE PERCENTAGE OF THE DISTRIBUTIVE SHARE  OF  THE
 PROFITS  AND  LOSSES  OF  SUCH  LIMITED PARTNERSHIP OR LIMITED LIABILITY
 COMPANY ARE EACH LESS THAN FIFTY PERCENT, AND SUCH  LIMITED  PARTNER  OR
 MEMBER  WAS  NOT  UNDER  A  DUTY  TO ACT FOR SUCH LIMITED PARTNERSHIP OR
 LIMITED LIABILITY COMPANY IN COMPLYING  WITH  ANY  REQUIREMENT  OF  THIS
 ARTICLE. PROVIDED, HOWEVER, THE COMMISSIONER MAY DENY AN APPLICATION FOR
 RELIEF  TO ANY SUCH LIMITED PARTNER OR MEMBER WHO THE COMMISSIONER FINDS
 HAS ACTED ON BEHALF OF SUCH LIMITED  PARTNERSHIP  OR  LIMITED  LIABILITY
 COMPANY  IN  COMPLYING  WITH ANY REQUIREMENT OF THIS ARTICLE OR HAS BEEN
 CONVICTED OF A CRIME PROVIDED IN THIS CHAPTER  OR  WHO  HAS  A  PAST-DUE
 LIABILITY,  AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-V
 OF THIS CHAPTER.
   (II) SUCH LIMITED PARTNER OR MEMBER MUST  SUBMIT  AN  APPLICATION  FOR
 RELIEF,  ON  A  FORM PRESCRIBED BY THE COMMISSIONER, AND THE INFORMATION
 PROVIDED IN SUCH APPLICATION MUST BE TRUE AND COMPLETE IN  ALL  MATERIAL
 RESPECTS.  PROVIDING  MATERIALLY FALSE OR FRAUDULENT INFORMATION ON SUCH
 APPLICATION SHALL DISQUALIFY SUCH LIMITED  PARTNER  OR  MEMBER  FOR  THE
 RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH, SHALL VOID ANY
 AGREEMENT  WITH  THE COMMISSIONER WITH RESPECT TO SUCH RELIEF, AND SHALL
 RESULT IN SUCH LIMITED PARTNER OR MEMBER BEARING  STRICT  LIABILITY  FOR
 THE  TOTAL  AMOUNT OF TAX, INTEREST AND PENALTY OWED BY THEIR RESPECTIVE
 LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY PURSUANT TO THIS SUBDI-
 VISION.

 S. 7509--A                         41                         A. 9509--A
 
   (III) A LIMITED PARTNER OF A LIMITED PARTNERSHIP OR MEMBER OF A LIMIT-
 ED LIABILITY COMPANY, WHO MEETS THE REQUIREMENTS SET FORTH IN THIS PARA-
 GRAPH AND WHOSE APPLICATION FOR RELIEF IS APPROVED BY THE  COMMISSIONER,
 SHALL  BE  LIABLE  FOR  THE PERCENTAGE OF THE ORIGINAL SALES AND USE TAX
 LIABILITY  OF  THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY
 COMPANY THAT REFLECTS  SUCH  LIMITED  PARTNER'S  OR  MEMBER'S  OWNERSHIP
 INTEREST OF DISTRIBUTIVE SHARE OF THE PROFITS AND LOSSES OF SUCH LIMITED
 PARTNERSHIP  OR  LIMITED  LIABILITY  COMPANY,  WHICHEVER IS HIGHER. SUCH
 ORIGINAL LIABILITY SHALL INCLUDE ANY INTEREST ACCRUED THEREON UP TO  AND
 INCLUDING  THE  DATE OF PAYMENT BY SUCH LIMITED PARTNER OR MEMBER AT THE
 UNDERPAYMENT RATE SET BY THE COMMISSIONER  PURSUANT  TO  SECTION  ELEVEN
 HUNDRED  FORTY-TWO  OF THIS PART, AND SHALL BE REDUCED BY THE SUM OF ANY
 PAYMENTS MADE BY (A) THE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPA-
 NY; (B) ANY PERSON REQUIRED TO COLLECT TAX NOT ELIGIBLE FOR RELIEF;  AND
 (C)  ANY  PERSON REQUIRED TO COLLECT TAX WHO WAS ELIGIBLE FOR RELIEF BUT
 HAD NOT BEEN APPROVED FOR RELIEF BY THE COMMISSIONER AT  THE  TIME  SUCH
 PAYMENT  WAS  MADE.  PROVIDED,  HOWEVER,  SUCH LIMITED PARTNER OR MEMBER
 SHALL NOT BE LIABLE FOR ANY PENALTY OWED BY SUCH LIMITED PARTNERSHIP  OR
 LIMITED LIABILITY COMPANY OR ANY OTHER PARTNER OR MEMBER OF SUCH LIMITED
 PARTNERSHIP  OR LIMITED LIABILITY COMPANY. ANY PAYMENT MADE BY A LIMITED
 PARTNER OR MEMBER PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH SHALL NOT
 BE CREDITED AGAINST THE LIABILITY OF OTHER LIMITED PARTNERS  OR  MEMBERS
 OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY WHO
 ARE  ELIGIBLE FOR THE SAME RELIEF; PROVIDED, HOWEVER THAT THE SUM OF THE
 AMOUNTS OWED BY ALL OF THE PERSONS REQUIRED TO COLLECT TAX OF A  LIMITED
 PARTNERSHIP  OR  LIMITED  LIABILITY  COMPANY  SHALL NOT EXCEED THE TOTAL
 LIABILITY OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY.
   § 3. This act shall take effect immediately.
 
                                  PART Y
 
   Section 1. Paragraph 1 of subdivision (a) of section 1115 of  the  tax
 law,  as  amended  by  section 1 of part II of chapter 59 of the laws of
 2014, is amended to read as follows:
   (1) (A) Food, food  products,  beverages,  dietary  foods  and  health
 supplements,  sold for human consumption but not including (i) candy and
 confectionery, (ii) fruit drinks which contain less than seventy percent
 of natural fruit juice, (iii) soft drinks, sodas and beverages  such  as
 are  ordinarily  dispensed  at soda fountains or in connection therewith
 (other than coffee, tea and cocoa) and (iv) beer, wine or other alcohol-
 ic beverages, all of which shall be subject  to  the  retail  sales  and
 compensating  use taxes, whether or not the item is sold in liquid form.
 NOTHING IN THIS SUBPARAGRAPH SHALL BE CONSTRUED  AS  EXEMPTING  FOOD  OR
 DRINK  FROM  THE  TAX  IMPOSED  UNDER  SUBDIVISION (D) OF SECTION ELEVEN
 HUNDRED FIVE OF THIS ARTICLE.
   [The] (B) UNTIL MAY THIRTY FIRST, TWO THOUSAND TWENTY,  THE  food  and
 drink  excluded  from  the  exemption  provided by [this paragraph under
 subparagraphs] CLAUSES (i), (ii) and (iii) OF SUBPARAGRAPH (A)  of  this
 paragraph,  AND  BOTTLED  WATER,  shall be exempt under this [paragraph]
 SUBPARAGRAPH when sold for one dollar and fifty cents  or  less  through
 any  vending  machine  [activated by the use of] THAT ACCEPTS coin[,] OR
 currency[, credit card or debit card] ONLY OR WHEN SOLD FOR TWO  DOLLARS
 OR  LESS  THROUGH  ANY  VENDING MACHINE THAT ACCEPTS ANY FORM OF PAYMENT
 OTHER THAN COIN OR CURRENCY, WHETHER OR NOT  IT  ALSO  ACCEPTS  COIN  OR
 CURRENCY. [With the exception of the provision in this paragraph provid-
 ing  for  an exemption for certain food or drink sold for one dollar and

 S. 7509--A                         42                         A. 9509--A

 fifty cents or less through vending machines, nothing  herein  shall  be
 construed as exempting food or drink from the tax imposed under subdivi-
 sion (d) of section eleven hundred five of this article.]
   § 2. This act shall take effect June 1, 2018, and shall apply to sales
 made and uses occurring on and after such date.
 
                                  PART Z
 
   Section  1. Section 2 of subpart R of part A of chapter 61 of the laws
 of 2017, amending the tax law relating to extending  the  expiration  of
 the  authorization  to the county of Genesee to impose an additional one
 percent of sales and compensating use  taxes,  is  amended  to  read  as
 follows:
   §  2.  Notwithstanding any other provision of law to the contrary, the
 one percent increase in sales and compensating use taxes authorized  for
 the  county of Genesee until November 30, [2019] 2020 pursuant to clause
 (20) of subparagraph (i) of the opening paragraph of section 1210 of the
 tax law, as amended by section one of this act, shall be divided in  the
 same  manner  and  proportion  as  the  existing three percent sales and
 compensating use taxes in such county are divided.
   § 2. Section 2 of subpart Z of part A of chapter 61  of  the  laws  of
 2017,  amending  the  tax  law  relating  to the imposition of sales and
 compensating use taxes by the county of Monroe, is amended  to  read  as
 follows:
   §  2.  Notwithstanding  the  provisions of subdivisions (b) and (c) of
 section 1262 and section 1262-g of the tax law, net collections, as such
 term is defined in section 1262 of the tax law, derived from the imposi-
 tion of sales and compensating use taxes by the county of Monroe at  the
 additional  rate of one percent as authorized pursuant to clause (25) of
 subparagraph (i) of the opening paragraph of section  1210  of  the  tax
 law, as amended by section one of this act, which are in addition to the
 current net collections derived from the imposition of such taxes at the
 three  percent  rate authorized by the opening paragraph of section 1210
 of the tax law, shall be distributed and allocated as follows:  for  the
 period  of  December  1,  2017 through November 30, [2019] 2020 in cash,
 five percent to the school districts in the area of the  county  outside
 the  city  of  Rochester,  three percent to the towns located within the
 county, one and one-quarter percent to the villages located  within  the
 county,  and  ninety and three-quarters percent to the city of Rochester
 and county of Monroe.  The  amount  of  the  ninety  and  three-quarters
 percent  to  be  distributed  and allocated to the city of Rochester and
 county of Monroe shall be distributed and allocated to each so that  the
 combined  total  distribution  and allocation to each from the sales tax
 revenues pursuant to sections 1262 and 1262-g of the tax  law  and  this
 section  shall  result  in  the  same total amount being distributed and
 allocated to the city of Rochester and county of Monroe. The  amount  so
 distributed  and  allocated  to  the  county  shall  be  used for county
 purposes. The foregoing cash payments to the school districts  shall  be
 allocated on the basis of the enrolled public school pupils, thereof, as
 such  term  is  used  in subdivision (b) of section 1262 of the tax law,
 residing in the county of Monroe. The cash payments to the towns located
 within the county of Monroe shall be allocated on the basis of the ratio
 which the population of each town, exclusive of the  population  of  any
 village  or  portion  thereof  located within a town, bears to the total
 population of the towns, exclusive of the  population  of  the  villages
 located  within  such  towns.  The cash payments to the villages located

 S. 7509--A                         43                         A. 9509--A
 
 within the county shall be allocated on the basis of the ratio which the
 population of each village bears to the total population of the villages
 located within the county. The term population as used in  this  section
 shall  have  the same meaning as used in subdivision (b) of section 1262
 of the tax law.
   § 3. Section 3 of subpart EE of part A of chapter 61 of  the  laws  of
 2017,  amending  the  tax law relating to extending the authorization of
 the county of Onondaga to impose an additional rate of sales and compen-
 sating use taxes, is amended to read as follows:
   § 3. Notwithstanding any contrary provision of  law,  net  collections
 from the additional one percent rate of sales and compensating use taxes
 which  may  be  imposed  by  the  county  of  Onondaga during the period
 commencing December 1, 2018 and ending November 30, [2019] 2020,  pursu-
 ant  to  the  authority  of  section  1210  of the tax law, shall not be
 subject to any revenue distribution agreement entered into under  subdi-
 vision  (c)  of  section 1262 of the tax law, but shall be allocated and
 distributed or paid, at least quarterly, as follows: (i)  1.58%  to  the
 county  of  Onondaga  for any county purpose; (ii) 97.79% to the city of
 Syracuse; and (iii) .63% to the  school  districts  in  accordance  with
 subdivision (a) of section 1262 of the tax law.
   §  4.  Section  2 of subpart GG of part A of chapter 61 of the laws of
 2017, amending the tax law relating to extending the  authority  of  the
 county  of Orange to impose an additional rate of sales and compensating
 use taxes, is amended to read as follows:
   § 2. Notwithstanding subdivision (c) of section 1262 of the  tax  law,
 net  collections  from any additional rate of sales and compensating use
 taxes which may be imposed by the county of  Orange  during  the  period
 commencing December 1, 2017, and ending November 30, [2019] 2020, pursu-
 ant  to  the  authority of section 1210 of the tax law, shall be paid to
 the county of Orange and shall be used by such county solely for  county
 purposes  and shall not be subject to any revenue distribution agreement
 entered into pursuant to the authority of  subdivision  (c)  of  section
 1262 of the tax law.
   §  5.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on June 29, 2017.
 
                                  PART AA
 
   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  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
 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, BOOTH,  CATALOG,  AN
 INTERNET WEBSITE, 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 OWNERSHIP INTEREST OF
 MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT,  IN  THE  OTHER,  OR

 S. 7509--A                         44                         A. 9509--A
 
 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 FACILI-
 TATES 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 SIXTEEN.
   (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  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
 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  SUBDIVISIONS; 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

 S. 7509--A                         45                         A. 9509--A
 
 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 SUCH 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  SUCH  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 THE MARKETPLACE PROVIDER ARE AFFILIATED WITHIN THE MEANING OF
 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

 S. 7509--A                         46                         A. 9509--A
 
 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  THEMSELVES  AND  SUCH  MARKETPLACE
 SELLER  AS  DESCRIBED IN SUBDIVISION (L) OF SECTION ELEVEN HUNDRED THIR-
 TY-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 two new subdivi-
 sions 15 and 16 to read as follows:
   15. TO PUBLISH A LIST  ON  THE  DEPARTMENT'S  WEBSITE  OF  MARKETPLACE
 PROVIDERS  WHOSE  CERTIFICATES  OF  AUTHORITY  HAS  BEEN REVOKED AND, IF
 NECESSARY TO PROTECT SALES TAX REVENUE, PROVIDE BY REGULATION OR  OTHER-
 WISE  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 (L) OF SECTION ELEVEN HUNDRED
 THIRTY-TWO OF THIS PART BEING MET, SUCH MARKETPLACE PROVIDER IS  NOT  ON
 SUCH LIST AT THE COMMENCEMENT OF THE QUARTERLY PERIOD COVERED THEREBY.
   16.  TO  ENFORCE  THE  PENALTIES IMPOSED ON NON-COLLECTING SELLERS AND
 NON-COLLECTING MARKETPLACE PROVIDERS  PROVIDED  BY  SUBDIVISION  (I)  OF
 SECTION  ELEVEN HUNDRED FORTY-FIVE OF THIS PART BY COMMENCING A PROCEED-
 ING UNDER ARTICLE SEVENTY-TWO OF THE CIVIL PRACTICE LAW AND RULES.  THIS
 MEANS  ENFORCING SUCH PENALTIES IS IN ADDITION TO ANY OTHER LAWFUL MEANS
 THE COMMISSIONER MAY USE TO ENFORCE SUCH PENALTIES. THE VENUE  FOR  SUCH
 PROCEEDING SHALL BE ALBANY COUNTY.
   §  7. The tax law is amended by adding a new section 1135-a to read as
 follows:
   § 1135-A. REPORTING REQUIREMENTS. (A) (1)  THE  FOLLOWING  DEFINITIONS
 APPLY TO THE TAXES IMPOSED BY THIS ARTICLE AND PURSUANT TO THE AUTHORITY
 OF ARTICLE TWENTY-NINE OF THIS CHAPTER:
   (A)  NON-COLLECTING  SELLER MEANS A PERSON WHO MAKES SALES OF TANGIBLE
 PERSONAL PROPERTY, THE USE OF WHICH IS TAXED BY THIS ARTICLE, BUT WHO IS
 NOT REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER  SECTION  ELEVEN
 HUNDRED  THIRTY-FOUR  OF THIS PART AND WHO DOES NOT COLLECT TAX OR MONEY
 PURPORTEDLY AS TAX  IMPOSED  BY  THIS  ARTICLE  IN  REGARD  TO  TANGIBLE
 PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE.
   (B)  NON-COLLECTING MARKETPLACE PROVIDER MEANS A MARKETPLACE PROVIDER,
 AS DEFINED BY SECTION ELEVEN HUNDRED ONE OF THIS  ARTICLE,  WHO  IS  NOT
 REQUIRED  TO  OBTAIN  A  CERTIFICATE  OF  AUTHORITY UNDER SECTION ELEVEN
 HUNDRED THIRTY-FOUR OF THIS PART AND WHO DOES NOT COLLECT TAX  OR  MONEY
 PURPORTEDLY  AS  TAX  IMPOSED  BY  THIS  ARTICLE  IN  REGARD TO TANGIBLE
 PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE.
   (C) NEW  YORK  PURCHASER  MEANS  ANY  PERSON  WHO  PURCHASES  TANGIBLE
 PERSONAL PROPERTY FOR DELIVERY TO A LOCATION IN THIS STATE.
   (D)  LAST KNOWN ADDRESS OF A NEW YORK PURCHASER MEANS, FOR PURPOSES OF
 THIS SUBDIVISION, SUBDIVISION SIXTEEN OF SECTION ELEVEN  HUNDRED  FORTY-
 TWO,  AND  SUBDIVISION  (I) OF SECTION ELEVEN HUNDRED FORTY-FIVE OF THIS
 PART, THE PURCHASER'S BILLING ADDRESS OR, IF  UNKNOWN,  THE  PURCHASER'S

 S. 7509--A                         47                         A. 9509--A
 
 SHIPPING  ADDRESS. IF NO BILLING OR SHIPPING ADDRESS IS KNOWN, THIS TERM
 SHALL MEAN THE PURCHASER'S LAST KNOWN E-MAIL ADDRESS.
   (2) THE FOLLOWING REQUIREMENTS APPLY TO A NON-COLLECTING SELLER:
   (A)  A  NON-COLLECTING SELLER'S RECORDS SHALL BE MADE AVAILABLE TO THE
 COMMISSIONER UPON REQUEST. THESE RECORDS  SHALL  INCLUDE,  BUT  ARE  NOT
 LIMITED  TO,  EACH  NEW  YORK PURCHASER'S NAME AND LAST KNOWN ADDRESS AS
 DEFINED BY SUBPARAGRAPH (D) OF PARAGRAPH ONE OF  THIS  SUBDIVISION,  AND
 THE  TOTAL OF THE NON-COLLECTING SELLER'S RECEIPTS FROM THE PURCHASES OF
 THE NEW YORK PURCHASER.
   (B) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE  OF  THIS  SUBDIVI-
 SION,  A  NON-COLLECTING  SELLER SHALL FILE AN ANNUAL INFORMATION RETURN
 WITH THE COMMISSIONER. SUCH RETURN SHALL INCLUDE THE TOTAL OF  THE  NON-
 COLLECTING SELLER'S RECEIPTS FROM PURCHASES OF TANGIBLE PERSONAL PROPER-
 TY  THAT WAS DELIVERED TO A LOCATION IN THIS STATE FOR THE CALENDAR YEAR
 COVERED BY THE RETURN, TOGETHER WITH SUCH OTHER INFORMATION THE  COMMIS-
 SIONER  MAY PRESCRIBE.   SUCH RETURN SHALL BE FILED ON OR BEFORE JANUARY
 THIRTY-FIRST OF EACH YEAR AND SHALL COVER THE PRIOR CALENDAR YEAR,  WITH
 THE  FIRST  SUCH RETURN DUE ON JANUARY THIRTY-FIRST, TWO THOUSAND TWENTY
 FOR THE CALENDAR YEAR TWO THOUSAND NINETEEN.
   (C) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE  OF  THIS  SUBDIVI-
 SION,  A  NON-COLLECTING  SELLER  SHALL  PROVIDE  AN ANNUAL STATEMENT OF
 PURCHASES TO EACH NEW YORK PURCHASER FOR PURCHASES OF TANGIBLE  PERSONAL
 PROPERTY  DELIVERED  TO A LOCATION IN THIS STATE FROM SUCH SELLER DURING
 THE CALENDAR YEAR COVERED BY THE STATEMENT. SUCH ANNUAL STATEMENT  SHALL
 INCLUDE:  (I) A STATEMENT THAT SALES OR USE TAX WAS NOT COLLECTED ON THE
 PURCHASER'S TRANSACTIONS  IN  THE  PRIOR  CALENDAR  YEAR  AND  THAT  THE
 PURCHASER  MAY BE REQUIRED TO REMIT SUCH TAX DIRECTLY TO THE COMMISSION-
 ER; (II) A LIST OF TRANSACTIONS ENTERED INTO DURING THE  PRIOR  CALENDAR
 YEAR  BY SUCH PURCHASER FOR DELIVERY TO A LOCATION INTO THIS STATE SHOW-
 ING, THE DATE OF EACH PURCHASE,  A  GENERAL  DESCRIPTION  OF  EACH  ITEM
 PURCHASED,  AND THE AMOUNT PAID FOR EACH ITEM, INCLUDING ANY SHIPPING OR
 DELIVERY CHARGES; (III) INSTRUCTIONS FOR OBTAINING  ADDITIONAL  INFORMA-
 TION  REGARDING  WHETHER  AND  HOW  TO REMIT THE SALES OR USE TAX TO THE
 COMMISSIONER; AND (IV) A STATEMENT THAT SUCH SELLERS MAY BE REQUIRED  TO
 ANNUALLY  REPORT THE AGGREGATE DOLLAR VALUE OF THE PURCHASER'S PURCHASES
 TO THE COMMISSIONER. SUCH STATEMENT SHALL  BE  SENT  TO  EACH  NEW  YORK
 PURCHASER  ON  OR  BEFORE JANUARY THIRTY-FIRST OF EACH YEAR, STARTING IN
 THE YEAR TWO THOUSAND TWENTY, COVERING SALES MADE IN THE PRIOR  CALENDAR
 YEAR.  SUCH  STATEMENT  SHALL BE SENT BY MAIL IN AN ENVELOPE BEARING THE
 STATEMENT "IMPORTANT TAX INFORMATION" TO THE NEW YORK  PURCHASER'S  LAST
 KNOWN  ADDRESS  AS  DEFINED BY SUBPARAGRAPH (D) OF PARAGRAPH ONE OF THIS
 SUBDIVISION, UNLESS THE PURCHASER'S LAST  KNOWN  ADDRESS  IS  AN  E-MAIL
 ADDRESS,  IN  WHICH  CASE  THE  STATEMENT  IS  TO BE SENT BY E-MAIL, THE
 SUBJECT LINE OF WHICH SHALL STATE "IMPORTANT TAX INFORMATION".
   (D) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE  OF  THIS  SUBDIVI-
 SION,  A NON-COLLECTING SELLER SHALL PROMINENTLY DISPLAY A NOTICE ON ALL
 ORDER FORMS, AND UPON EACH SALES RECEIPT  OR  OTHER  MEMORANDUM  OF  THE
 PRICE,  WHETHER ELECTRONIC OR ON PAPER, PROVIDED TO A NEW YORK PURCHASER
 MAKING A PURCHASE OF TANGIBLE PERSONAL PROPERTY TO  BE  DELIVERED  TO  A
 LOCATION  IN THIS STATE, INCLUDING ANY SCREEN THAT SUMMARIZES THE TRANS-
 ACTION PRIOR TO THE COMPLETION OF THE SALE. SUCH NOTICE  SHALL  INDICATE
 THAT  NEITHER  NEW  YORK  STATE  AND  LOCAL  SALES  NOR USE TAX IS BEING
 COLLECTED OR REMITTED UPON THE TRANSACTION, AND THAT THE  PURCHASER  MAY
 BE REQUIRED TO REMIT SUCH TAX DIRECTLY TO THE COMMISSIONER.
   (3)  A  NON-COLLECTING  SELLER  SHALL  KEEP RECORDS OF THE INFORMATION
 DESCRIBED IN SUBPARAGRAPHS (A), (B) AND (C) OF  PARAGRAPH  TWO  OF  THIS

 S. 7509--A                         48                         A. 9509--A
 
 SUBDIVISION,  ALONG  WITH PROOF THAT IT HAS PROVIDED PURCHASERS WITH ANY
 PER-PURCHASE NOTICES OR ANNUAL STATEMENTS  OF  PURCHASES  REQUIRED.  THE
 NON-COLLECTING  SELLER  SHALL  KEEP SUCH RECORDS FOR SUCH PERIODS AND IN
 SUCH  MANNER  AS  PRESCRIBED FOR RECORDS REQUIRED TO BE MAINTAINED UNDER
 SUBDIVISIONS (A) AND (G) OF SECTION ELEVEN HUNDRED THIRTY-FIVE  OF  THIS
 PART,  OR  AS  THE COMMISSIONER MAY OTHERWISE REQUIRE BY REGULATION. THE
 NON-COLLECTING SELLER SHALL MAKE THOSE RECORDS AVAILABLE FOR  INSPECTION
 AND EXAMINATION AT ANY TIME UPON DEMAND BY THE COMMISSIONER.
   (4)  THE  REQUIREMENTS  IN SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH
 TWO OF THIS SUBDIVISION DO NOT APPLY TO A NON-COLLECTING SELLER FOR  ANY
 CALENDAR YEAR IN WHICH THE NON-COLLECTING SELLER'S RECEIPTS FROM ALL NEW
 YORK  PURCHASERS  ARE  LESS  THAN  FIVE MILLION DOLLARS DURING THE PRIOR
 CALENDAR YEAR.
   (5) THE REQUIREMENTS IN SUBPARAGRAPHS (B), (C) AND  (D)  OF  PARAGRAPH
 TWO  OF  THIS  SUBDIVISION  DO  NOT  APPLY TO A NON-COLLECTING SELLER IN
 REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY SUBJECT TO TAX
 UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE IF,
 THE NON-COLLECTING SELLER CAN SHOW THAT SUCH SALE  WAS  FACILITATED  BY:
 (A)  A  MARKETPLACE  PROVIDER  FROM  WHOM SUCH NON-COLLECTING SELLER HAS
 RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION AS
 DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (L) OF SECTION ELEVEN  HUNDRED
 THIRTY-TWO  OF  THIS  PART; OR (B) A NON-COLLECTING MARKETPLACE PROVIDER
 WHO FULFILLED THE REQUIREMENTS OF SUBPARAGRAPHS  (B),  (C)  AND  (D)  OF
 PARAGRAPH TWO OF THIS SUBDIVISION ON ITS BEHALF.
   (B)  (1)  A  NON-COLLECTING  MARKETPLACE  PROVIDER  SHALL  PERFORM THE
 REQUIREMENTS IN PARAGRAPH TWO OF SUBDIVISION  (A)  OF  THIS  SECTION  ON
 BEHALF  OF A NON-COLLECTING SELLER FOR ALL SALES IT FACILITATES FOR SUCH
 NON-COLLECTING SELLER.
   (2) NON-COLLECTING MARKETPLACE PROVIDERS SHALL ALSO PROVIDE NOTICE  TO
 ALL  NON-COLLECTING  SELLERS  FOR WHOM THEY FACILITATE SALES OF TANGIBLE
 PERSONAL PROPERTY THAT IS DELIVERED TO A LOCATION IN  THIS  STATE,  SUCH
 NOTICE SHALL INCLUDE THE FOLLOWING INFORMATION:
   (A)  SUCH SELLERS MAY BE REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY
 UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART  AND  COLLECT  THE
 TAXES  IMPOSED  BY THIS ARTICLE AND PURSUANT TO THE AUTHORITY OF ARTICLE
 TWENTY-NINE OF THIS CHAPTER, OR, WHERE SUCH SELLERS ARE NOT REQUIRED  TO
 OBTAIN  A CERTIFICATE AND COLLECT TAX, THAT SUCH SELLERS ARE REQUIRED TO
 COMPLY WITH THE REQUIREMENTS OF THIS PARAGRAPH;
   (B) THE NON-COLLECTING MARKETPLACE PROVIDER WILL PROVIDE EACH SELLER'S
 NAME, ADDRESS AND AGGREGATE AMOUNT OF SALES DELIVERED TO A  LOCATION  IN
 THIS STATE TO THE COMMISSIONER UPON REQUEST; AND
   (C)  THE NON-COLLECTING MARKETPLACE PROVIDER IS REPORTING THE INFORMA-
 TION AND SENDING THE NOTICES REQUIRED BY SUBPARAGRAPHS (B), (C) AND  (D)
 OF  PARAGRAPH  TWO  OF  SUBDIVISION (A) OF THIS SECTION ON BEHALF OF THE
 NON-COLLECTING SELLER FOR SUCH SALE IF IT WAS FACILITATED BY  SUCH  NON-
 COLLECTING MARKETPLACE PROVIDER.
   (C)  THE COMMISSIONER MAY, IN THEIR DISCRETION, MODIFY, WITHOUT ADDING
 TO, THE INFORMATION OTHERWISE REQUIRED TO BE INCLUDED IN THE INFORMATION
 RETURN, ANNUAL STATEMENT OF PURCHASES, OR PER-PURCHASE  NOTICE  REQUIRED
 BY  THIS  SUBDIVISION  IF  OTHER  STATES IMPOSE SIMILAR REQUIREMENTS, IN
 ORDER TO FACILITATE THE COMPLIANCE OF NON-COLLECTING SELLERS.
   § 8. Subdivision (i) of section 1145 of  the  tax  law,  as  added  by
 section 2 of subpart G of part V-1 of chapter 57 of the laws of 2009, is
 amended to read as follows:
   (i)(1)  Every person required to file an information return by SECTION
 ELEVEN HUNDRED  THIRTY-FIVE-A  OR  subdivision  (i)  of  section  eleven

 S. 7509--A                         49                         A. 9509--A
 
 hundred  thirty-six  of  this  part,  OR  AN  ANNUAL STATEMENT OR NOTICE
 REQUIRED BY SECTION ELEVEN HUNDRED THIRTY-FIVE-A OF THIS PART who  [(A)]
 fails  to  provide  any of the information required [by paragraph one or
 two of subdivision (i) of section eleven hundred thirty-six of this part
 for a vendor, operator, or recipient] TO BE PROVIDED IN SUCH INFORMATION
 RETURN  OR NOTICE, OR WHO FAILS TO PERFORM THE REQUIREMENTS OF PARAGRAPH
 TWO OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED THIRTY-FIVE-A  OF  THIS
 PART,  or  who  fails  to  include any such information that is true and
 correct [(whether or not such a report is filed) for a vendor, operator,
 or recipient, or (B) fails to provide the information required by  para-
 graph  four  of  subdivision (i) of section eleven hundred thirty-six of
 this part to a vendor, operator, or  recipient  specified  in  paragraph
 four  of  subdivision  (i)  of section eleven hundred thirty-six of this
 part], will, in addition to any other penalty provided in  this  article
 or  otherwise  imposed  by  law, be subject to a penalty of five hundred
 dollars for ten or fewer failures, and up  to  fifty  dollars  for  each
 additional failure.
   (2)  Every  person  failing  to file an information return required by
 SECTION ELEVEN HUNDRED THIRTY-FIVE-A OR subdivision (i) of section elev-
 en hundred thirty-six OF THIS PART OR AN ANNUAL STATEMENT OR  NOTICE  BY
 SECTION  ELEVEN  HUNDRED  THIRTY-FIVE-A  of  this  part  within the time
 required [by subdivision (i) of section  eleven  hundred  thirty-six  of
 this  part], will, in addition to any other penalty provided for in this
 article or otherwise imposed by law, be  subject  to  a  penalty  in  an
 amount  not  to  exceed  two  thousand  dollars  for  each such failure,
 provided that the minimum penalty under this paragraph is  five  hundred
 dollars.
   (3)  In  no  event  will  the penalty imposed by paragraph one of this
 subdivision, or the aggregate of the penalties imposed under  paragraphs
 one  and  two  of  this subdivision, exceed ten thousand dollars for any
 annual filing period [as described by paragraph three of subdivision (i)
 of section eleven hundred thirty-six of this part].
   (4) If the commissioner determines that any of the failures  that  are
 subject to penalty under this subdivision was entirely due to reasonable
 cause  and  not  due to willful neglect, the commissioner must remit the
 penalty imposed under this subdivision. These penalties will  be  deter-
 mined,  assessed,  collected, paid, disposed of and enforced in the same
 manner as taxes imposed by this article and all the provisions  of  this
 article  relating  thereto  will be deemed also to refer to these penal-
 ties.
   § 9. 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 provision had not been included herein.
   §  10. This act shall take effect immediately and shall apply to sales
 made on or after September 1, 2018; provided, however, that the require-
 ments in subparagraphs (B) and (C) of paragraph 2 of subdivision (a)  of
 section  1135-a as added by section two of this act shall apply to sales
 made on or after January 1, 2019.
 
                                  PART BB

 S. 7509--A                         50                         A. 9509--A
 
   Section 1. 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] CIGARS,
 VAPOR PRODUCTS, or tobacco, other than cigarettes, intended for consump-
 tion by smoking, chewing, INHALING VAPORS or as snuff.
   § 2. Subdivision 12 of section 470 of the tax law, as added by chapter
 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.
   § 3. Section 470 of the tax law is amended by adding a new subdivision
 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  THIRTY-THREE  HUNDRED
 SIXTY-TWO OF THE PUBLIC HEALTH LAW.
   §  4.  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  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.
   § 5. 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  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.
   §  6.  Subdivision  (a) of section 471-c of the tax law, as amended by
 section 2 of part I-1 of chapter 57 of the laws of 2009, paragraphs  (i)
 and  (ii)  as  amended  by  section  20  and paragraph (iii) as added by
 section 21 of part D of chapter 134 of the laws of 2010, is  amended  to
 read as follows:
   (a)  There  is  hereby  imposed and shall be paid a tax on all tobacco
 products used in the state by any person, except that no such tax  shall
 be imposed (1) if the tax provided in section four hundred seventy-one-b
 of this article is paid, or (2) on the use of tobacco products which are
 exempt  from  the  tax imposed by said section, or (3) on the use of two
 hundred fifty cigars or less, [or] five pounds or less of tobacco  other
 than roll-your-own tobacco, [or] thirty-six ounces or less of roll-your-
 own tobacco OR FIVE HUNDRED MILLILITERS OR LESS OF VAPOR PRODUCT brought
 into the state on, or in the possession of, any person.
   (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.

 S. 7509--A                         51                         A. 9509--A
 
   (ii) Such tax on snuff shall be at the rate of two dollars  per  ounce
 and  a  proportionate rate on any fractional parts of an ounce, provided
 that cans or packages of snuff with a net weight of less than one  ounce
 shall  be  taxed at the equivalent rate of cans or packages weighing one
 ounce.  Such  tax shall be computed based on the net weight as listed by
 the manufacturer.
   (iii) Such tax on little cigars shall be at the same rate  imposed  on
 cigarettes  under  this  article and is intended to be imposed only once
 upon the sale of any little cigars.
   (IV) SUCH TAX ON VAPOR PRODUCTS SHALL BE AT A RATE OF  TEN  CENTS  PER
 FLUID  MILLILITER  OF THE VAPOR PRODUCT. ALL INVOICES FOR VAPOR PRODUCTS
 ISSUED BY DISTRIBUTORS AND WHOLESALERS MUST STATE THE  AMOUNT  OF  VAPOR
 PRODUCT IN MILLILITERS.
   §  7. 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.
   §  8. 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,
 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.
   § 9. 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

 S. 7509--A                         52                         A. 9509--A
 
 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
 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 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
 MILLILITERS 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,
 however,  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 fraction thereof, in excess of fifty cigars [or], one pound of tobac-
 co  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.
   §  10.  Items  (I)  and  (II)  of clause (B) and items (I) and (II) of
 clause (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,
 are amended to read as follows:
   (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 MILLI-
 LITERS 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
 five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILI-
 TERS 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 deal-
 er; provided, however, that any such penalty imposed under  this  clause
 shall not exceed ten thousand dollars in the aggregate.
   (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

 S. 7509--A                         53                         A. 9509--A
 
 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.
   § 11. Paragraph (a) of subdivision 2 of section 481 of the tax law, as
 amended by chapter 552 of the laws  of  2008,  is  amended  to  read  as
 follows:
   (a)  The  possession within this state of more than four hundred ciga-
 rettes in unstamped or unlawfully stamped packages [or], 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 by any person other than an agent or distributor,  as  the  case
 may  be, OR FIVE HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT at any one
 time shall be presumptive  evidence  that  such  cigarettes  or  tobacco
 products are subject to tax as provided by this article.
   §  12.  Subdivisions  (a)  and  (h) 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, 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,  (IV)
 FORTY-FOUR  THOUSAND  MILLILITERS OF VAPOR PRODUCT OR MORE or has previ-
 ously been convicted two or more times of a violation of  paragraph  one
 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
 taxation and finance] under article twenty of  this  chapter,  or  other
 person  treated as a distributor pursuant to section four hundred seven-
 ty-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  imprison-
 ment 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 chap-
 ter shall be guilty of a misdemeanor punishable by a fine  of  not  more
 than  five  thousand  dollars or by a term of imprisonment not to exceed
 thirty days.
   (3) Any person, other than a distributor appointed by the commissioner
 under article twenty of this chapter, who shall knowingly  transport  or
 have in his custody, possession or under his control twenty-five hundred

 S. 7509--A                         54                         A. 9509--A
 
 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 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.
   §  13.  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 MILLI-
 LITERS OF VAPOR PRODUCT for sale within the state, or produces, manufac-
 tures or compounds tobacco products within the state 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.    If,
 within  any  ninety  day  period,  one  thousand or more cigars [or five
 hundred], TWENTY pounds or more of tobacco OR TWO  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 misde-
 meanor. Provided further, that any person who has twice  been  convicted
 under  this  section  shall be guilty of a class E felony for any subse-
 quent 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.
   § 14. 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:
   (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

 S. 7509--A                         55                         A. 9509--A
 
 being imported for sale in the state where the person importing or caus-
 ing  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.
   §  15.  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.
   § 16. 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 such date.
 
                                  PART CC

   Section 1. The tax law is amended by adding a new article 20-C to read
 as follows:
                               ARTICLE 20-C
                         OPIOID EPIDEMIC SURCHARGE
 SECTION 492. DEFINITIONS.
         493. IMPOSITION OF SURCHARGE.
         494. RETURNS TO BE SECRET.
   § 492. DEFINITIONS. WHEN USED IN THIS  ARTICLE,  THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "OPIOID"  SHALL MEAN AN "OPIATE" AS DEFINED BY SUBDIVISION TWENTY-
 THREE OF SECTION THIRTY-THREE HUNDRED TWO OF THE PUBLIC HEALTH LAW,  AND
 ANY  NATURAL,  SYNTHETIC, OR SEMISYNTHETIC "NARCOTIC DRUG" AS DEFINED BY
 SUBDIVISION TWENTY-TWO OF SUCH SECTION, THAT HAS AGONIST, PARTIAL  AGON-
 IST,  OR  AGONIST/ANTAGONIST MORPHINE-LIKE ACTIVITIES OR EFFECTS SIMILAR

 S. 7509--A                         56                         A. 9509--A
 
 TO NATURAL OPIUM ALKALOIDS AND ANY DERIVATIVE, CONGENER, OR  COMBINATION
 THEREOF,  LISTED  IN SCHEDULES II-IV OF SECTION THIRTY-THREE HUNDRED SIX
 OF THE PUBLIC HEALTH LAW.
   2.  "UNIT"  SHALL  MEAN  THE  DOSAGE FORM OF AN OPIOID-CONTAINING DRUG
 INCLUDING, BUT NOT LIMITED TO, TABLETS, CAPSULES, SUPPOSITORIES, TOPICAL
 (TRANSDERMAL), BUCCAL OR ANY  OTHER  DOSAGE  FORM,  SUCH  AS  WEIGHT  OR
 VOLUME.
   3. "UNIT STRENGTH" SHALL MEAN THE AMOUNT OF OPIOID IN A UNIT, AS MEAS-
 URED BY WEIGHT, VOLUME, CONCENTRATION OR OTHER METRIC.
   4.  "MORPHINE  MILLIGRAM EQUIVALENT CONVERSION FACTOR" SHALL MEAN THAT
 REFERENCE STANDARD OF A PARTICULAR OPIOID AS IT RELATES  IN  POTENCY  TO
 MORPHINE AS DETERMINED BY THE COMMISSIONER OF HEALTH.
   5. "MORPHINE MILLIGRAM EQUIVALENT" SHALL MEAN A UNIT MULTIPLIED BY ITS
 UNIT STRENGTH MULTIPLIED BY THE MORPHINE MILLIGRAM EQUIVALENT CONVERSION
 FACTOR OF THE OPIOID CONTAINED IN SUCH UNIT.
   6. "ESTABLISHMENT" SHALL MEAN ANY PERSON, FIRM, CORPORATION OR ASSOCI-
 ATION  REQUIRED  TO BE REGISTERED WITH THE EDUCATION DEPARTMENT PURSUANT
 TO SECTION SIXTY-EIGHT HUNDRED  EIGHT  OR  SECTION  SIXTY-EIGHT  HUNDRED
 EIGHT-B  OF  THE EDUCATION LAW, AS WELL AS ANY PERSON, FIRM, CORPORATION
 OR ASSOCIATION THAT WOULD BE REQUIRED TO BE REGISTERED WITH  THE  EDUCA-
 TION DEPARTMENT PURSUANT TO SUCH SECTION SIXTY-EIGHT HUNDRED EIGHT-B BUT
 FOR THE EXCEPTION IN SUBDIVISION TWO OF SUCH SECTION.
   7.  "INVOICE"  SHALL MEAN THE INVOICE, SALES SLIP, MEMORANDUM OF SALE,
 OR OTHER DOCUMENT EVIDENCING A SALE OF AN OPIOID.
   § 493. IMPOSITION OF SURCHARGE. 1. THERE IS HEREBY IMPOSED A SURCHARGE
 ON THE SALE OF ANY OPIOID OF TWO CENTS PER MORPHINE MILLIGRAM EQUIVALENT
 SOLD.  SUCH SURCHARGE SHALL BE IMPOSED ON THE FIRST SALE OF SUCH  OPIOID
 IN  THE STATE, EXCEPT THAT SUCH SURCHARGE SHALL NOT APPLY WHEN SUCH SALE
 IS TO ANY PROGRAM OPERATED PURSUANT TO ARTICLE THIRTY-TWO OF THE  MENTAL
 HYGIENE  LAW.   THIS SURCHARGE SHALL BE CHARGED AGAINST, AND BE PAID BY,
 THE ESTABLISHMENT MAKING THE FIRST SALE OF SUCH OPIOID IN THE STATE, AND
 SHALL NOT BE ADDED AS A SEPARATE CHARGE OR  LINE  ITEM  ON  ANY  INVOICE
 GIVEN TO THE CUSTOMER OR OTHERWISE PASSED DOWN TO THE CUSTOMER. HOWEVER,
 AN  ESTABLISHMENT LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE SHALL
 CLEARLY NOTE ON THE INVOICE FOR THE FIRST SALE OF AN OPIOID IN THE STATE
 ITS LIABILITY FOR THE SURCHARGE,  ALONG  WITH  ITS  NAME,  ADDRESS,  AND
 TAXPAYER  IDENTIFICATION  NUMBER.  ALL  SALES OF AN OPIOID IN THIS STATE
 SHALL BE PRESUMED TO BE THE FIRST  SALE  OF  SUCH,  AND  SHALL  ALSO  BE
 PRESUMED  TO BE SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE, UNLESS
 THE CONTRARY IS ESTABLISHED BY THE SELLER.
   2. EVERY ESTABLISHMENT LIABLE FOR THE SURCHARGE IMPOSED BY THIS  ARTI-
 CLE  SHALL  FILE  WITH THE COMMISSIONER A RETURN, ON FORMS PRESCRIBED BY
 THE COMMISSIONER, INDICATING THE TOTAL MORPHINE MILLIGRAM EQUIVALENT  OF
 OPIOIDS IT SOLD IN THE STATE, THE TOTAL MORPHINE MILLIGRAM EQUIVALENT OF
 SUCH  OPIOIDS THAT ARE SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE,
 THE AMOUNT OF SURCHARGE DUE THEREON, AND SUCH FURTHER INFORMATION AS THE
 COMMISSIONER MAY REQUIRE. SUCH RETURNS SHALL BE DUE  ON  OR  BEFORE  THE
 TWENTIETH  DAY  OF  EACH  MONTH, AND SHALL COVER ALL OPIOID SALES IN THE
 STATE MADE IN THE MONTH PRIOR, EXCEPT THAT THE FIRST RETURN REQUIRED  TO
 BE  FILED  PURSUANT  TO  THIS  SECTION SHALL BE DUE ON OR BEFORE JANUARY
 TWENTIETH, TWO THOUSAND NINETEEN AND SHALL COVER ALL OPIOID SALES OCCUR-
 RING IN THE PERIOD BETWEEN THE EFFECTIVE DATE OF THIS ARTICLE AND DECEM-
 BER THIRTY-FIRST, TWO THOUSAND EIGHTEEN.   EVERY ESTABLISHMENT  REQUIRED
 TO  FILE  A  RETURN UNDER THIS SECTION SHALL, AT THE TIME OF FILING SUCH
 RETURN, PAY TO THE COMMISSIONER THE TOTAL AMOUNT OF  SURCHARGE  DUE  FOR
 THE  PERIOD  COVERED BY SUCH RETURN.  IF A RETURN IS NOT FILED WHEN DUE,

 S. 7509--A                         57                         A. 9509--A
 
 THE SURCHARGE SHALL BE DUE ON THE DAY ON WHICH THE RETURN IS REQUIRED TO
 BE FILED. THE COMMISSIONER MAY REQUIRE THAT  THE  RETURNS  AND  PAYMENTS
 REQUIRED BY THIS ARTICLE BE FILED OR PAID ELECTRONICALLY.
   3. ESTABLISHMENTS MAKING SALES OF OPIOIDS IN THIS STATE SHALL MAINTAIN
 ALL  INVOICES  PERTAINING  TO  SUCH SALES FOR SIX YEARS AFTER THE RETURN
 REPORTING SUCH SALES IS FILED WITH THE COMMISSIONER, UNLESS THE  COMMIS-
 SIONER  PROVIDES FOR A DIFFERENT RETENTION PERIOD BY RULE OR REGULATION.
 THE ESTABLISHMENT SHALL PRODUCE SUCH RECORDS UPON DEMAND BY THE  COMMIS-
 SIONER.
   4.  WHENEVER THE COMMISSIONER SHALL DETERMINE THAT ANY MONEYS RECEIVED
 UNDER THE PROVISIONS OF THIS ARTICLE WERE PAID IN ERROR, HE OR  SHE  MAY
 CAUSE  THE  SAME  TO BE REFUNDED, WITH INTEREST, EXCEPT THAT NO INTEREST
 SHALL BE ALLOWED OR PAID IF THE AMOUNT THEREOF WOULD BE  LESS  THAN  ONE
 DOLLAR.  SUCH  INTEREST  SHALL  BE  AT  THE  OVERPAYMENT RATE SET BY THE
 COMMISSIONER PURSUANT TO SUBDIVISION TWENTY-SIXTH OF SECTION ONE HUNDRED
 SEVENTY-ONE OF THIS CHAPTER, OR IF NO RATE IS SET, AT THE  RATE  OF  SIX
 PERCENT PER ANNUM, FROM THE DATE WHEN THE SURCHARGE, PENALTY OR INTEREST
 TO BE REFUNDED WAS PAID TO A DATE PRECEDING THE DATE OF THE REFUND CHECK
 BY  NOT MORE THAN THIRTY DAYS.  PROVIDED, HOWEVER, THAT FOR THE PURPOSES
 OF THIS SUBDIVISION, ANY SURCHARGE PAID BEFORE THE LAST  DAY  PRESCRIBED
 FOR ITS PAYMENT SHALL BE DEEMED TO HAVE BEEN PAID ON SUCH LAST DAY. SUCH
 MONEYS  RECEIVED  UNDER  THE PROVISIONS OF THIS ARTICLE THAT THE COMMIS-
 SIONER SHALL DETERMINE WERE PAID IN ERROR, MAY BE REFUNDED OUT OF  FUNDS
 IN  THE  CUSTODY  OF  THE  COMPTROLLER  TO THE CREDIT OF SUCH SURCHARGES
 PROVIDED AN APPLICATION THEREFOR IS FILED WITH THE  COMMISSIONER  WITHIN
 TWO YEARS FROM THE TIME THE ERRONEOUS PAYMENT WAS MADE.
   5.  THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY
 TO THE SURCHARGE IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE
 SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE HAD BEEN INCOR-
 PORATED IN FULL INTO THIS SECTION AND  HAD  EXPRESSLY  REFERRED  TO  THE
 SURCHARGE  IMPOSED  BY  THIS  ARTICLE,  EXCEPT  TO  THE  EXTENT THAT ANY
 PROVISION OF SUCH ARTICLE IS EITHER INCONSISTENT  WITH  A  PROVISION  OF
 THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE.
   6. (A) THE SURCHARGES, INTEREST, AND PENALTIES IMPOSED BY THIS ARTICLE
 AND  COLLECTED  OR RECEIVED BY THE COMMISSIONER SHALL BE DEPOSITED DAILY
 WITH SUCH RESPONSIBLE BANKS, BANKING HOUSES OR TRUST COMPANIES,  AS  MAY
 BE  DESIGNATED  BY  THE  STATE  COMPTROLLER, TO THE CREDIT OF THE OPIOID
 PREVENTION, TREATMENT  AND  RECOVERY  ACCOUNT  ESTABLISHED  PURSUANT  TO
 SECTION  NINETY-SEVEN-AAAAA  OF THE STATE FINANCE LAW. AN ACCOUNT MAY BE
 ESTABLISHED IN ONE OR MORE OF SUCH DEPOSITORIES. SUCH DEPOSITS  WILL  BE
 KEPT  SEPARATE  AND  APART FROM ALL OTHER MONEY IN THE POSSESSION OF THE
 STATE COMPTROLLER. THE STATE COMPTROLLER SHALL REQUIRE ADEQUATE SECURITY
 FROM ALL SUCH DEPOSITORIES. OF THE TOTAL REVENUE COLLECTED  OR  RECEIVED
 UNDER  THIS  ARTICLE,  THE STATE COMPTROLLER SHALL RETAIN SUCH AMOUNT AS
 THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR  REFUNDS  UNDER  THIS
 ARTICLE.  THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE
 AMOUNTS IT RECEIVES UNDER THIS ARTICLE, BEFORE DEPOSIT  INTO  THE  TRUST
 ACCOUNTS DESIGNATED BY THE STATE COMPTROLLER, A REASONABLE AMOUNT NECES-
 SARY  TO EFFECTUATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIM-
 BURSE THE DEPARTMENT FOR THE COSTS INCURRED TO ADMINISTER,  COLLECT  AND
 DISTRIBUTE THE SURCHARGE IMPOSED BY THIS ARTICLE.
   (B)  ON  OR BEFORE THE TWELFTH AND TWENTY-SIXTH DAY OF EACH SUCCEEDING
 MONTH, AFTER RESERVING SUCH AMOUNT FOR SUCH REFUNDS AND  DEDUCTING  SUCH
 AMOUNTS  FOR SUCH COSTS, AS PROVIDED FOR IN PARAGRAPH (A) OF THIS SUBDI-
 VISION, THE COMMISSIONER SHALL CERTIFY  TO  THE  STATE  COMPTROLLER  THE
 AMOUNT OF ALL REVENUES SO RECEIVED DURING THE PRIOR MONTH BECAUSE OF THE

 S. 7509--A                         58                         A. 9509--A
 
 SURCHARGES, INTEREST AND PENALTIES SO IMPOSED. THE AMOUNT OF REVENUES SO
 CERTIFIED SHALL BE PAID OVER BY THE FIFTEENTH AND THE FINAL BUSINESS DAY
 OF  EACH  SUCCEEDING MONTH FROM SUCH ACCOUNT INTO THE OPIOID PREVENTION,
 TREATMENT  AND  RECOVERY ACCOUNT ESTABLISHED PURSUANT TO SECTION NINETY-
 SEVEN-AAAAA OF THE STATE FINANCE LAW.
   7. THE COMMISSIONERS OF EDUCATION AND HEALTH SHALL COOPERATE WITH  THE
 COMMISSIONER IN ADMINISTERING THIS SURCHARGE, INCLUDING SHARING WITH THE
 COMMISSIONER PERTINENT INFORMATION ABOUT ESTABLISHMENTS UPON THE REQUEST
 OF THE COMMISSIONER.
   § 494. RETURNS TO BE SECRET. 1. EXCEPT IN ACCORDANCE WITH PROPER JUDI-
 CIAL  ORDER OR AS IN THIS SECTION OR OTHERWISE PROVIDED BY LAW, IT SHALL
 BE UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPART-
 MENT, OR ANY OFFICER OR PERSON WHO, PURSUANT TO THIS SECTION, IS PERMIT-
 TED TO INSPECT ANY RETURN OR REPORT OR TO WHOM A COPY, AN ABSTRACT OR  A
 PORTION OF ANY RETURN OR REPORT IS FURNISHED, OR TO WHOM ANY INFORMATION
 CONTAINED IN ANY RETURN OR REPORT IS FURNISHED, OR ANY PERSON ENGAGED OR
 RETAINED  BY  SUCH  DEPARTMENT  ON  AN INDEPENDENT CONTRACT BASIS OR ANY
 PERSON WHO IN ANY MANNER MAY ACQUIRE KNOWLEDGE  OF  THE  CONTENTS  OF  A
 RETURN OR REPORT FILED PURSUANT TO THIS ARTICLE TO DIVULGE OR MAKE KNOWN
 IN  ANY  MANNER  THE  CONTENTS  OR ANY OTHER INFORMATION RELATING TO THE
 BUSINESS OF AN ESTABLISHMENT CONTAINED IN ANY RETURN OR REPORT  REQUIRED
 UNDER  THIS  ARTICLE.  THE  OFFICERS  CHARGED  WITH  THE CUSTODY OF SUCH
 RETURNS OR REPORTS SHALL NOT BE REQUIRED  TO  PRODUCE  ANY  OF  THEM  OR
 EVIDENCE  OF  ANYTHING  CONTAINED IN THEM IN ANY ACTION OR PROCEEDING IN
 ANY COURT, EXCEPT ON BEHALF  OF  THE  STATE,  THE  STATE  DEPARTMENT  OF
 HEALTH,  THE  STATE  DEPARTMENT  OF  EDUCATION OR THE COMMISSIONER IN AN
 ACTION OR PROCEEDING UNDER THE PROVISIONS OF THIS CHAPTER OR  ON  BEHALF
 OF  THE  STATE  OR  THE  COMMISSIONER  IN ANY OTHER ACTION OR PROCEEDING
 INVOLVING THE COLLECTION OF A TAX DUE UNDER THIS CHAPTER  TO  WHICH  THE
 STATE  OR  THE COMMISSIONER IS A PARTY OR A CLAIMANT OR ON BEHALF OF ANY
 PARTY TO ANY ACTION OR PROCEEDING UNDER THE PROVISIONS OF THIS  ARTICLE,
 WHEN  THE RETURNS OR THE REPORTS OR THE FACTS SHOWN THEREBY ARE DIRECTLY
 INVOLVED IN SUCH ACTION OR PROCEEDING, IN ANY OF WHICH EVENTS THE  COURT
 MAY REQUIRE THE PRODUCTION OF, AND MAY ADMIT IN EVIDENCE SO MUCH OF SAID
 RETURNS OR REPORTS OR OF THE FACTS SHOWN THEREBY AS ARE PERTINENT TO THE
 ACTION  OR  PROCEEDING AND NO MORE. NOTHING HEREIN SHALL BE CONSTRUED TO
 PROHIBIT THE COMMISSIONER, IN HIS OR HER DISCRETION, FROM  ALLOWING  THE
 INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED
 UNDER  THIS  ARTICLE, OR FROM PROVIDING ANY INFORMATION CONTAINED IN ANY
 SUCH RETURN OR REPORT, BY OR TO A DULY AUTHORIZED OFFICER OR EMPLOYEE OF
 THE STATE DEPARTMENT OF HEALTH OR THE STATE DEPARTMENT OF EDUCATION; NOR
 TO PROHIBIT THE INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN
 OR REPORT FILED UNDER THIS ARTICLE, OR THE PROVISION OF ANY  INFORMATION
 CONTAINED  THEREIN,  BY OR TO THE ATTORNEY GENERAL OR OTHER LEGAL REPRE-
 SENTATIVES OF THE STATE WHEN AN ACTION SHALL HAVE  BEEN  RECOMMENDED  OR
 COMMENCED  PURSUANT  TO THIS CHAPTER IN WHICH SUCH RETURNS OR REPORTS OR
 THE FACTS SHOWN THEREBY ARE  DIRECTLY  INVOLVED;  NOR  TO  PROHIBIT  THE
 COMMISSIONER  FROM  PROVIDING OR CERTIFYING TO THE DIVISION OF BUDGET OR
 THE COMPTROLLER THE TOTAL NUMBER OF RETURNS OR REPORTS FILED UNDER  THIS
 ARTICLE IN ANY REPORTING PERIOD AND THE TOTAL COLLECTIONS RECEIVED THER-
 EFROM; NOR TO PROHIBIT THE INSPECTION OF THE RETURNS OR REPORTS REQUIRED
 UNDER  THIS  ARTICLE  BY  THE  COMPTROLLER OR DULY DESIGNATED OFFICER OR
 EMPLOYEE OF THE STATE DEPARTMENT OF AUDIT AND CONTROL, FOR  PURPOSES  OF
 THE AUDIT OF A REFUND OF ANY SURCHARGE PAID BY AN ESTABLISHMENT OR OTHER
 PERSON UNDER THIS ARTICLE; NOR TO PROHIBIT THE DELIVERY TO AN ESTABLISH-
 MENT,  OR  A  DULY  AUTHORIZED  REPRESENTATIVE  OF SUCH ESTABLISHMENT, A

 S. 7509--A                         59                         A. 9509--A
 
 CERTIFIED COPY OF ANY RETURN  OR  REPORT  FILED  BY  SUCH  ESTABLISHMENT
 PURSUANT  TO THIS ARTICLE, NOR TO PROHIBIT THE PUBLICATION OF STATISTICS
 SO CLASSIFIED AS TO PREVENT THE IDENTIFICATION OF PARTICULAR RETURNS  OR
 REPORTS AND THE ITEMS THEREOF.
   2. (A) ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE
 PROVISIONS  OF  SUBDIVISION  ONE OF THIS SECTION SHALL BE DISMISSED FROM
 OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN THIS STATE FOR A
 PERIOD OF FIVE YEARS THEREAFTER.
   (B) A VIOLATION OF THIS ARTICLE SHALL BE  CONSIDERED  A  VIOLATION  OF
 SECRECY PROVISIONS UNDER ARTICLE THIRTY-SEVEN OF THIS CHAPTER.
   § 2. Section 1825 of the tax law, as amended by section 20 of part AAA
 of chapter 59 of the laws of 2017, is amended to read as follows:
   §  1825.  Violation  of secrecy provisions of the tax law.--Any person
 who violates the provisions of [subdivision (b) of section  twenty-one,]
 subdivision one of section two hundred two, subdivision eight of section
 two  hundred  eleven, subdivision (a) of section three hundred fourteen,
 subdivision one or two of section  four  hundred  thirty-seven,  section
 four hundred eighty-seven, SECTION FOUR HUNDRED NINETY-FOUR, subdivision
 one  or  two of section five hundred fourteen, subsection (e) of section
 six hundred ninety-seven, subsection (a) of section nine  hundred  nine-
 ty-four,  subdivision  (a)  of section eleven hundred forty-six, section
 twelve hundred eighty-seven, section twelve hundred ninety-six, subdivi-
 sion (a) of  section  fourteen  hundred  eighteen,  subdivision  (a)  of
 section  fifteen  hundred  eighteen,  subdivision (a) of section fifteen
 hundred fifty-five of this  chapter,  and  subdivision  (e)  of  section
 11-1797  of  the  administrative  code  of the city of New York shall be
 guilty of a misdemeanor.
   § 3. The state finance law is amended by adding a new section 97-aaaaa
 to read as follows:
   § 97-AAAAA. OPIOID PREVENTION,  TREATMENT  AND  RECOVERY  ACCOUNT.  1.
 THERE  IS  HEREBY  ESTABLISHED  IN  THE JOINT CUSTODY OF THE STATE COMP-
 TROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE AN ACCOUNT  OF  THE
 MISCELLANEOUS  SPECIAL  REVENUE  ACCOUNT  TO  BE  KNOWN  AS  THE "OPIOID
 PREVENTION, TREATMENT AND RECOVERY ACCOUNT".
   2. MONEYS IN THE OPIOID PREVENTION,  TREATMENT  AND  RECOVERY  ACCOUNT
 SHALL BE KEPT SEPARATE AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS
 IN THE CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION
 AND FINANCE.
   3. THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT SHALL CONSIST
 OF  MONEYS  APPROPRIATED  FOR THE PURPOSE OF SUCH ACCOUNT, MONEYS TRANS-
 FERRED TO SUCH ACCOUNT PURSUANT  TO  LAW,  CONTRIBUTIONS  CONSISTING  OF
 PROMISES OR GRANTS OF ANY MONEY OR PROPERTY OF ANY KIND OR VALUE, OR ANY
 OTHER  THING  OF  VALUE,  INCLUDING GRANTS OR OTHER FINANCIAL ASSISTANCE
 FROM ANY AGENCY OF GOVERNMENT AND MONEYS REQUIRED BY THE  PROVISIONS  OF
 THIS  SECTION  OR  ANY  OTHER  LAW  TO  BE PAID INTO OR CREDITED TO THIS
 ACCOUNT. THE ACCOUNT SHALL ALSO CONSIST  OF  MONEYS  RECEIVED  FROM  ANY
 LITIGATION  OR  ENFORCEMENT  ACTIONS INITIATED AGAINST OPIOID PHARMACEU-
 TICAL MANUFACTURERS, DISTRIBUTORS AND WHOLESALERS.
   4. MONEYS OF THE OPIOID PREVENTION, TREATMENT  AND  RECOVERY  ACCOUNT,
 WHEN  ALLOCATED,  SHALL  BE  AVAILABLE,  SUBJECT  TO THE APPROVAL OF THE
 DIRECTOR OF THE BUDGET, TO SUPPORT PROGRAMS OPERATED  BY  THE  NEW  YORK
 STATE  OFFICE  OF  ALCOHOLISM  AND  SUBSTANCE ABUSE SERVICES OR AGENCIES
 CERTIFIED, AUTHORIZED, APPROVED OR OTHERWISE  FUNDED  BY  THE  NEW  YORK
 STATE  OFFICE  OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE SERVICES TO PROVIDE
 OPIOID TREATMENT, RECOVERY AND PREVENTION AND EDUCATION SERVICES; AND TO

 S. 7509--A                         60                         A. 9509--A

 PROVIDE SUPPORT FOR THE  PRESCRIPTION  MONITORING  PROGRAM  REGISTRY  IF
 ESTABLISHED.
   5.  AT THE REQUEST OF THE BUDGET DIRECTOR, THE STATE COMPTROLLER SHALL
 TRANSFER MONEYS TO SUPPORT THE  COSTS  OF  OPIOID  TREATMENT,  RECOVERY,
 PREVENTION,  EDUCATION  SERVICES,  AND  OTHER RELATED PROGRAMS, FROM THE
 OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT TO ANY OTHER  FUND  OF
 THE STATE.
   6.  NOTWITHSTANDING  THE  PROVISIONS OF ANY GENERAL OR SPECIAL LAW, NO
 MONEYS SHALL BE AVAILABLE FROM  THE  OPIOID  PREVENTION,  TREATMENT  AND
 RECOVERY  ACCOUNT  UNTIL  A  CERTIFICATE OF ALLOCATION AND A SCHEDULE OF
 AMOUNTS TO BE AVAILABLE THEREFOR SHALL HAVE BEEN ISSUED BY THE  DIRECTOR
 OF THE BUDGET, UPON THE RECOMMENDATION OF THE COMMISSIONER OF THE OFFICE
 OF  ALCOHOLISM  AND SUBSTANCE ABUSE SERVICES, AND A COPY OF SUCH CERTIF-
 ICATE FILED WITH THE COMPTROLLER, THE CHAIRMAN  OF  THE  SENATE  FINANCE
 COMMITTEE  AND  THE  CHAIRMAN  OF THE ASSEMBLY WAYS AND MEANS COMMITTEE.
 SUCH CERTIFICATE MAY BE AMENDED FROM TIME TO TIME BY THE DIRECTOR OF THE
 BUDGET, UPON THE RECOMMENDATION OF THE COMMISSIONER  OF  THE  OFFICE  OF
 ALCOHOLISM  AND  SUBSTANCE  ABUSE SERVICES, AND A COPY OF SUCH AMENDMENT
 SHALL BE FILED WITH THE COMPTROLLER, THE CHAIRMAN OF THE SENATE  FINANCE
 COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE.
   7.  THE  MONEYS,  WHEN  ALLOCATED,  SHALL  BE  PAID  OUT OF THE OPIOID
 PREVENTION, TREATMENT AND RECOVERY ACCOUNT, PURSUANT TO SUBDIVISION FOUR
 OF THIS SECTION, AND SUBJECT TO THE APPROVAL  OF  THE  DIRECTOR  OF  THE
 BUDGET,  ON  THE AUDIT AND WARRANT OF THE COMPTROLLER ON VOUCHERS CERTI-
 FIED OR APPROVED BY (A) THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND
 SUBSTANCE ABUSE SERVICES OR HIS OR HER DESIGNEE; OR (B) THE COMMISSIONER
 OF THE DEPARTMENT OF HEALTH OR HIS OR HER DESIGNEE.
   § 4. This act shall take effect July 1, 2018.
 
                                  PART DD
 
   Section 1. The tax law is amended by adding a new section 1521 to read
 as follows:
   § 1521. HEALTHCARE INSURANCE WINDFALL PROFIT FEE. (A) IN  ADDITION  TO
 ALL  TAXES,  SURCHARGES, AND FEES IMPOSED UNDER THIS CHAPTER, THE INSUR-
 ANCE LAW, THE FINANCIAL SERVICES LAW, AND THE PUBLIC HEALTH  LAW,  THERE
 IS  HEREBY  IMPOSED FOR EACH TAXABLE YEAR BEGINNING AFTER DECEMBER THIR-
 TY-FIRST, TWO THOUSAND SEVENTEEN, A FOURTEEN PERCENT  SURCHARGE  ON  THE
 NET UNDERWRITING GAIN FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS
 LOCATED OR RESIDENT WITHIN THIS STATE AND THE NET UNDERWRITING GAIN FROM
 THE OPERATION OF A MEDICAID MANAGED CARE ORGANIZATION BUSINESS REGULATED
 BY THE DEPARTMENT OF HEALTH OF EVERY CORPORATION (1) AUTHORIZED TO TRAN-
 SACT  AN INSURANCE BUSINESS IN THIS STATE, OR (2) THAT IS A HEALTH MAIN-
 TENANCE ORGANIZATION REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER
 ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW.
   (B) FOR PURPOSES OF THIS SECTION, THE TERM  "HEALTH  INSURANCE"  SHALL
 MEAN  COMPREHENSIVE  HOSPITAL  AND  MEDICAL EXPENSE INSURANCE INCLUDING,
 WITHOUT LIMITATION, COMPREHENSIVE COVERAGE ISSUED BY  A  HEALTH  MAINTE-
 NANCE  ORGANIZATION,  DISABILITY  INCOME  INSURANCE, ACCIDENT INSURANCE,
 MEDICARE  SUPPLEMENT  INSURANCE,  SPECIFIED  DISEASE  INSURANCE,  DENTAL
 INSURANCE, VISION INSURANCE, STOP-LOSS INSURANCE, FIXED INDEMNITY INSUR-
 ANCE, AND HOSPITAL INDEMNITY INSURANCE.
   (C)(1) FOR EACH TAXABLE YEAR, THE "NET UNDERWRITING GAIN FROM THE SALE
 OF  HEALTH  INSURANCE  WRITTEN  ON RISKS LOCATED OR RESIDENT WITHIN THIS
 STATE" SHALL EQUAL A CORPORATION'S  GROSS  RECEIPTS  FROM  THE  SALE  OF
 HEALTH  INSURANCE  WRITTEN  ON RISKS LOCATED OR RESIDENT WITHIN NEW YORK

 S. 7509--A                         61                         A. 9509--A
 
 LESS THE CORPORATION'S CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO THE
 GROSS RECEIPTS. THE COMPUTATION OF "GROSS  RECEIPTS  FROM  THE  SALE  OF
 HEALTH  INSURANCE  WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN NEW YORK"
 AND "CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO GROSS RECEIPTS" SHALL
 BE MADE PURSUANT TO THE RULES SET FORTH IN REGULATIONS TO BE PROMULGATED
 BY THE SUPERINTENDENT OF FINANCIAL SERVICES.
   (2)  FOR EACH TAXABLE YEAR, THE "NET UNDERWRITING GAIN FROM THE OPERA-
 TION OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE DEPARTMENT
 OF HEALTH" SHALL EQUAL A CORPORATION'S GROSS RECEIPTS FROM THE OPERATION
 OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE  DEPARTMENT  OF
 HEALTH LESS THE CORPORATION'S CLAIMS AND ADMINISTRATIVE EXPENSES RELATED
 TO  SUCH  GROSS  RECEIPTS.  THE  COMPUTATION OF "GROSS RECEIPTS FROM THE
 OPERATION OF A MANAGED  CARE  ORGANIZATION  BUSINESS  REGULATED  BY  THE
 DEPARTMENT OF HEALTH" AND "CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO
 GROSS  RECEIPTS"  SHALL BE MADE PURSUANT TO THE RULES SET FORTH IN REGU-
 LATIONS TO BE PROMULGATED BY THE SUPERINTENDENT OF FINANCIAL SERVICES.
   (D) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SURCHARGE IMPOSED  BY
 THIS SECTION SHALL NOT BE DEDUCTIBLE BY A CORPORATION IN DETERMINING ITS
 LIABILITY FOR ANY OTHER TAX, SURCHARGE, OR FEE IMPOSED UNDER ANY LAW.
   (E)  NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SURCHARGE IMPOSED BY
 THIS SECTION SHALL NOT BE CONSIDERED BY ANY CORPORATION, AND  SHALL  NOT
 BE  DEEMED  TO BE AN EXPENSE, COST, OR LIABILITY, FOR PURPOSES OF ESTAB-
 LISHING OR SETTING THE RATE TO BE CHARGED FOR ANY HEALTH INSURANCE POLI-
 CY.
   (F) THE SURCHARGE IMPOSED BY THIS SECTION SHALL BE CALCULATED BY  EACH
 CORPORATION  ON  AN  ANNUAL BASIS WITHOUT REGARD TO THE ITEMS OF GAIN OR
 LOSS FROM ANY OTHER PERIOD.
   (G) (1) THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL, ON  BEHALF  OF
 THE  COMMISSIONER,  HAVE  THE  POWER, DUTY AND RESPONSIBILITY TO EXAMINE
 RETURNS OF A CORPORATION FILED WITH HIM OR HER PURSUANT TO THIS  SECTION
 AND, TOGETHER WITH ANY OTHER INFORMATION WITHIN HIS OR HER POSSESSION OR
 THAT  MAY  COME  INTO  HIS  OR  HER POSSESSION, TO ASCERTAIN THE CORRECT
 AMOUNT OF SURCHARGE IMPOSED UNDER THIS SECTION OF ANY  CORPORATION.  FOR
 THE  PURPOSE  OF  ASCERTAINING  THE  CORRECTNESS  OF  ANY SUCH SURCHARGE
 IMPOSED UNDER THIS SECTION OR FOR THE PURPOSE OF MAKING AN  ESTIMATE  OF
 THE  SURCHARGE  LIABILITY  UNDER  THIS  SECTION  OF ANY CORPORATION, THE
 SUPERINTENDENT OF FINANCIAL SERVICES SHALL HAVE THE POWER TO EXAMINE  OR
 CAUSE  TO HAVE EXAMINED BY ANY AGENT OR REPRESENTATIVE DESIGNATED BY HIM
 OR HER FOR THAT PURPOSE, ANY BOOKS, PAPERS, RECORDS OR MEMORANDA BEARING
 UPON THE MATTERS REQUIRED TO BE INCLUDED IN THE RETURN.
   (2) IF THE SUPERINTENDENT OF FINANCIAL SERVICES  ASCERTAINS  THAT  THE
 AMOUNT OF SURCHARGE IMPOSED UNDER THIS SECTION AS SHOWN ON THE RETURN OF
 ANY CORPORATION IS LESS THAN THE AMOUNT OF SURCHARGE DISCLOSED BY HIS OR
 HER EXAMINATION, HE OR SHE SHALL PROPOSE, IN WRITING, TO THE COMMISSION-
 ER  THE  ISSUANCE  OF  A  NOTICE  OF DEFICIENCY FOR THE AMOUNT DUE. IF A
 CORPORATION FAILS TO FILE A RETURN WITH THE SUPERINTENDENT OF  FINANCIAL
 SERVICES  WITHIN  THE  TIME REQUIRED FOR THE FILING OF SUCH RETURN (WITH
 REGARD TO ANY EXTENSION OF TIME FOR THE FILING THEREOF), THE SUPERINTEN-
 DENT OF FINANCIAL SERVICES SHALL MAKE  AN  ESTIMATE  OF  THE  AMOUNT  OF
 SURCHARGE DUE FOR THE PERIOD IN RESPECT TO WHICH SUCH CORPORATION FAILED
 TO FILE THE RETURN. THE ESTIMATE SHALL BE MADE FROM ANY AVAILABLE INFOR-
 MATION WHICH IS IN THE POSSESSION OR MAY COME INTO THE POSSESSION OF THE
 SUPERINTENDENT  OF  FINANCIAL  SERVICES  AND HE OR SHE SHALL PROPOSE, IN
 WRITING, TO THE COMMISSIONER THE ISSUANCE OF A NOTICE OF DEFICIENCY  FOR
 THE  AMOUNT  OF  SUCH ESTIMATED SURCHARGE. ANY PROPOSAL PURSUANT TO THIS

 S. 7509--A                         62                         A. 9509--A
 
 PARAGRAPH SHALL SET FORTH THE BASIS  THEREOF  AND  THE  DETAILS  OF  ITS
 COMPUTATION.
   (3)  THE  COMMISSIONER SHALL, ON RECEIPT OF A PROPOSAL FROM THE SUPER-
 INTENDENT OF FINANCIAL SERVICES PURSUANT TO PARAGRAPH TWO OF THIS SUBDI-
 VISION, TAKE APPROPRIATE ACTION UNDER THIS CHAPTER  FOR  THE  ASSESSMENT
 AND  COLLECTION  OF  THE AMOUNT OF SURCHARGE, TOGETHER WITH INTEREST AND
 PENALTIES, SHOWN BY SUCH PROPOSAL TO BE  DUE.    THE  SUPERINTENDENT  OF
 FINANCIAL  SERVICES  SHALL  BE  REQUIRED  TO  ASSIST THE COMMISSIONER IN
 DEFENDING THE CORRECTNESS OF THE AMOUNT ASSESSED AT  ANY  CONFERENCE  AT
 THE BUREAU OF CONCILIATION AND MEDIATION SERVICES AND AT THE DIVISION OF
 TAX APPEALS.
   (4) SUBJECT TO THE CONSENT OF THE SUPERINTENDENT OF FINANCIAL SERVICES
 AND  NOTWITHSTANDING  ANY  OTHER  PROVISIONS OF LAW TO THE CONTRARY, THE
 COMMISSIONER MAY DELEGATE SUCH OTHER OF HIS OR  HER  POWERS  AND  DUTIES
 WITH  RESPECT  TO  THE  ADMINISTRATION  AND  COLLECTION OF THE SURCHARGE
 IMPOSED UNDER THIS SECTION TO THE SUPERINTENDENT OF FINANCIAL  SERVICES,
 AS THE COMMISSIONER FINDS NECESSARY IN ORDER TO FACILITATE SUCH ADMINIS-
 TRATION AND COLLECTION.
   (5)  THE  SUPERINTENDENT  OF  FINANCIAL  SERVICES AND THE COMMISSIONER
 SHALL EACH HAVE THE AUTHORITY TO ISSUE SUCH RULES AND  REGULATIONS  THAT
 ARE NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION.
   (6)  THE PROVISIONS OF THIS SUBDIVISION SHALL NOT IN ANY WAY BE DEEMED
 TO LIMIT THE POWER OF THE COMMISSIONER  TO  CONDUCT  AN  EXAMINATION  OR
 INVESTIGATION  AS HE OR SHE DEEMS NECESSARY IN ORDER TO CARRY OUT HIS OR
 HER DUTIES WITH RESPECT TO THE SURCHARGE IMPOSED UNDER THIS SECTION.
   (H) (1) EVERY CORPORATION SUBJECT TO THE SURCHARGE IN SUBDIVISION  (A)
 OF  THIS  SECTION, SHALL ANNUALLY, ON OR BEFORE THE FIFTEENTH DAY OF THE
 THIRD MONTH FOLLOWING THE CLOSE OF ITS TAXABLE  YEAR,  TRANSMIT  TO  THE
 COMMISSIONER  A  RETURN IN A FORM PRESCRIBED BY THE COMMISSIONER SETTING
 FORTH SUCH INFORMATION AS  THE  COMMISSIONER  MAY  PRESCRIBE  AND  EVERY
 CORPORATION  WHICH CEASES TO BE SUBJECT TO THE SURCHARGE IMPOSED BY THIS
 SECTION SHALL TRANSMIT TO THE COMMISSIONER A RETURN ON THE DATE OF  SUCH
 CESSATION OR AT SUCH OTHER TIME AS THE COMMISSIONER MAY REQUIRE COVERING
 EACH YEAR OR PERIOD FOR WHICH NO RETURN WAS THERETOFORE FILED. A COPY OF
 EACH RETURN REQUIRED UNDER THIS SUBDIVISION SHALL ALSO BE TRANSMITTED TO
 THE  SUPERINTENDENT  OF FINANCIAL SERVICES AT OR BEFORE THE TIMES SPECI-
 FIED FOR FILING SUCH RETURNS WITH THE COMMISSIONER.
   (2) EVERY CORPORATION SHALL ALSO TRANSMIT SUCH OTHER RETURNS AND  SUCH
 FACTS  AND  INFORMATION  AS THE COMMISSIONER MAY REQUIRE IN THE ADMINIS-
 TRATION OF THIS SECTION.
   (3) THE COMMISSIONER MAY GRANT A  REASONABLE  EXTENSION  OF  TIME  FOR
 FILING  RETURNS  WHENEVER  GOOD  CAUSE EXISTS. AN AUTOMATIC EXTENSION OF
 FOUR MONTHS FOR THE FILING OF ITS RETURN SHALL  BE  ALLOWED  ANY  CORPO-
 RATION,  IF WITHIN THE TIME PRESCRIBED BY PARAGRAPH ONE OF THIS SUBDIVI-
 SION, SUCH CORPORATION FILES WITH THE COMMISSIONER  AN  APPLICATION  FOR
 EXTENSION  IN SUCH FORM AS THE COMMISSIONER MAY PRESCRIBE AND PAYS ON OR
 BEFORE THE DATE OF SUCH FILING THE  AMOUNT  PROPERLY  ESTIMATED  AS  ITS
 SURCHARGE.
   (4)  EVERY  RETURN  SHALL  HAVE ANNEXED THERETO A CERTIFICATION BY THE
 PRESIDENT,  VICE  PRESIDENT,  TREASURER,  ASSISTANT   TREASURER,   CHIEF
 ACCOUNTING  OFFICER OR ANY OTHER OFFICER OF THE CORPORATION DULY AUTHOR-
 IZED SO TO ACT TO THE EFFECT THAT THE STATEMENTS CONTAINED  THEREIN  ARE
 TRUE. THE FACT THAT AN INDIVIDUAL'S NAME IS SIGNED ON A CERTIFICATION OF
 THE RETURN SHALL BE PRIMA FACIE EVIDENCE THAT SUCH INDIVIDUAL IS AUTHOR-
 IZED TO SIGN AND CERTIFY THE RETURN ON BEHALF OF THE CORPORATION.

 S. 7509--A                         63                         A. 9509--A

   (5)  EACH  CORPORATION  SUBJECT TO THE SURCHARGE IN SUBDIVISION (A) OF
 THIS SECTION SHALL FILE A SEPARATE RETURN FOR EACH YEAR SUCH CORPORATION
 IS SUBJECT TO THE SURCHARGE.
   (6)  IN  CASE  IT SHALL APPEAR TO THE COMMISSIONER THAT ANY AGREEMENT,
 UNDERSTANDING OR ARRANGEMENT EXISTS  BETWEEN  THE  CORPORATION  AND  ANY
 OTHER  ENTITY,  PERSON OR FIRM WHEREBY THE ACTIVITY, BUSINESS, INCOME OR
 CAPITAL OF THE CORPORATION IS IMPROPERLY OR INACCURATELY REFLECTED,  THE
 COMMISSIONER IS AUTHORIZED AND EMPOWERED IN HIS OR HER DISCRETION AND IN
 SUCH  MANNER  AS  HE  OR  SHE  MAY DETERMINE, TO ADJUST ITEMS OF INCOME,
 DEDUCTIONS AND CAPITAL SO AS EQUITABLY TO DETERMINE THE SURCHARGE. WHERE
 (A) ANY CORPORATION CONDUCTS ITS ACTIVITY OR BUSINESS UNDER  ANY  AGREE-
 MENT,  ARRANGEMENT OR UNDERSTANDING IN SUCH MANNER AS EITHER DIRECTLY OR
 INDIRECTLY TO BENEFIT ITS MEMBERS OR STOCKHOLDERS, OR ANY  OF  THEM,  OR
 ANY PERSON OR PERSONS DIRECTLY OR INDIRECTLY INTERESTED IN SUCH ACTIVITY
 OR  BUSINESS,  BY  ENTERING  INTO ANY TRANSACTION AT MORE OR LESS THAN A
 FAIR PRICE WHICH, BUT FOR SUCH AGREEMENT, ARRANGEMENT OR  UNDERSTANDING,
 MIGHT  HAVE  BEEN  PAID  OR RECEIVED THEREFOR, OR (B) ANY CORPORATION, A
 SUBSTANTIAL PORTION OF WHOSE CAPITAL STOCK IS OWNED EITHER  DIRECTLY  OR
 INDIRECTLY BY ANOTHER CORPORATION, ENTERS INTO ANY TRANSACTION WITH SUCH
 OTHER  CORPORATION  ON  SUCH TERMS AS TO CREATE AN IMPROPER GAIN OR LOSS
 AMOUNT, THE COMMISSIONER MAY INCLUDE IN THE CORPORATION'S  GAIN  SUBJECT
 TO  THE  SURCHARGE  THE  FAIR  AMOUNTS,  WHICH,  BUT FOR SUCH AGREEMENT,
 ARRANGEMENT OR UNDERSTANDING, THE CORPORATION MIGHT  HAVE  DERIVED  FROM
 SUCH TRANSACTION.
   (I)  (1) TO THE EXTENT THE SURCHARGE IMPOSED BY THIS SECTION SHALL NOT
 HAVE BEEN PREVIOUSLY PAID, THE SURCHARGE, OR THE BALANCE THEREOF,  SHALL
 BE  PAYABLE  TO  THE  COMMISSIONER IN FULL AT THE TIME THE CORPORATION'S
 RETURN IS REQUIRED TO BE FILED.
   (2) IF THE CORPORATION, WITHIN THE TIME PRESCRIBED BY SUBDIVISION  (F)
 OF  THIS  SECTION, SHALL HAVE APPLIED FOR AN AUTOMATIC EXTENSION OF TIME
 TO FILE ITS ANNUAL RETURN AND SHALL HAVE PAID TO THE  SUPERINTENDENT  OF
 FINANCIAL  SERVICES  ON  OR BEFORE THE DATE SUCH APPLICATION IS FILED AN
 AMOUNT PROPERLY ESTIMATED AS PROVIDED  BY  SAID  SUBDIVISION,  THE  ONLY
 AMOUNT  PAYABLE  IN  ADDITION  TO THE SURCHARGE SHALL BE INTEREST AT THE
 UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SUBSECTION (E)  OF
 SECTION  ONE  THOUSAND NINETY-SIX OF THIS CHAPTER OR, IF NO RATE IS SET,
 AT THE RATE OF SIX PERCENT PER  ANNUM  UPON  THE  AMOUNT  BY  WHICH  THE
 SURCHARGE,  OR  PORTION THEREOF PAYABLE ON OR BEFORE THE DATE THE RETURN
 WAS REQUIRED TO BE FILED, EXCEEDS THE AMOUNT SO PAID. FOR  THE  PURPOSES
 OF THE PRECEDING SENTENCE:
   (A)  AN  AMOUNT  SO  PAID  SHALL BE DEEMED PROPERLY ESTIMATED IF IT IS
 EITHER (I) NOT LESS THAN NINETY PERCENT  OF  THE  SURCHARGE  AS  FINALLY
 DETERMINED,  OR  (II)  NOT  LESS  THAN THE SURCHARGE SHOWN ON THE CORPO-
 RATION'S RETURN FOR THE PRECEDING TAXABLE YEAR, IF SUCH  PRECEDING  YEAR
 WAS A TAXABLE YEAR OF TWELVE MONTHS; AND
   (B) THE TIME WHEN A RETURN IS REQUIRED TO BE FILED SHALL BE DETERMINED
 WITHOUT REGARD TO ANY EXTENSION OF TIME FOR FILING SUCH RETURN.
   (3)  THE  COMMISSIONER  MAY  GRANT  A REASONABLE EXTENSION OF TIME FOR
 PAYMENT OF ANY SURCHARGE IMPOSED BY THIS SECTION UNDER  SUCH  CONDITIONS
 AS HE OR SHE DEEMS JUST AND PROPER.
   (J)  ALL  SURCHARGES,  INTEREST AND PENALTIES COLLECTED OR RECEIVED BY
 THE COMMISSIONER UNDER THIS SECTION SHALL BE DEPOSITED INTO  THE  HEALTH
 CARE  REFORM ACT (HCRA) RESOURCES FUND PURSUANT TO SECTION NINETY-TWO-DD
 OF THE STATE FINANCE LAW.
   (K) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY
 TO THE PROVISIONS OF THIS SECTION IN THE SAME MANNER AND WITH  THE  SAME

 S. 7509--A                         64                         A. 9509--A
 
 FORCE  AND  EFFECT  AS  IF THE LANGUAGE OF SUCH ARTICLE TWENTY-SEVEN HAD
 BEEN INCORPORATED IN FULL INTO THIS ARTICLE AND HAD  EXPRESSLY  REFERRED
 TO  THE SURCHARGE UNDER THIS SECTION, EXCEPT TO THE EXTENT THAT ANY SUCH
 PROVISION  IS EITHER INCONSISTENT WITH A PROVISION OF THIS SECTION OR IS
 NOT RELEVANT TO THIS SECTION.
   § 2. This act shall take effect immediately.
 
                                  PART EE
 
   Section 1. Subdivision 1 of Section 208  of  the  racing,  pari-mutuel
 wagering  and  breeding  law,  as  amended by chapter 140 of the laws of
 2008, is amended to read as follows:
   1. In consideration of the franchise and in accordance with its  fran-
 chise  agreement,  the  franchised corporation shall remit to the state,
 each year, no later than April fifth, a franchise fee payment. The fran-
 chise fee shall be calculated and equal to the lesser of  paragraph  (a)
 or  (b) of this subdivision as follows: (a) adjusted net income, includ-
 ing all sources of audited generally accepted accounting principles  net
 income  as  of December thirty-first (i) plus the amount of depreciation
 and amortization for such year as set forth on  the  statement  of  cash
 flows  (ii)  less  the amount received by the franchised corporation for
 capital expenditures and (iii) less  principal  payments  made  for  the
 repayment of debt; or (b) operating cash which is defined as cash avail-
 able  on  December  thirty-first  (i) which excludes all restricted cash
 accounts, segregated accounts as per audited  financial  statements  and
 cash  on hand needed to fund the on-track pari-mutuel operations through
 the vault, (ii) less [forty-five]  NINETY  days  of  operating  expenses
 pursuant  to  generally accepted accounting principles which shall be an
 average calculated by dividing the current year's annual budget  by  the
 number  of days in such year and multiplying that number by [forty-five]
 NINETY.
   § 2. 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,  ONLY  ON  THE  MAIN TRACK IN ITS CURRENT
 CONFIGURATION, ONLY IF SUCH RACES CONCLUDE BEFORE HALF PAST TEN O' CLOCK

 S. 7509--A                         65                         A. 9509--A

 POST MERIDIAN, AND ONLY IF SUCH RACES OCCUR  ON  THURSDAYS,  FRIDAYS  OR
 SATURDAYS.  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 STAG-
 GERED.
   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.
   §  3.  An  advisory  committee  shall  be  established by the governor
 comprised of individuals with demonstrated interest in  the  performance
 of  thoroughbred  and  standardbred  race  horses  to review the present
 structure, operations and funding of equine drug  testing  and  research
 conducted  pursuant  to article nine of the racing, pari-mutuel wagering
 and breeding law. Recommendations shall be delivered  to  the  temporary
 president  of the Senate, speaker of the Assembly and Governor by Decem-
 ber 1, 2018 regarding the future of such research, testing and  funding.
 Members of the board shall not be considered policymakers.
   §  4.  This act shall take effect immediately; provided, however, that
 the amendments to section 203 of the racing,  pari-mutuel  wagering  and
 breeding  law made by section two of this act shall expire and be deemed
 repealed 4 years after the first night of racing conducted after  sunset
 pursuant  to  this  act;  provided  that the New York Racing Association
 shall notify the legislative bill drafting commission  of  the  date  of
 such  night of racing in order that the commission may maintain an accu-
 rate 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  offi-
 cers law.
 
                                  PART FF
 
   Section  1.  Subdivision  2  of section 254 of the racing, pari-mutuel
 wagering and breeding law is amended by adding a new paragraph h to read
 as follows:
   H. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND TO SUPPORT AND PROMOTE
 THE ONGOING CARE OF RETIRED HORSES, PROVIDED,  HOWEVER,  THAT  THE  FUND
 SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES.
   §  2. Subdivision 1 of section 332 of the racing, pari-mutuel wagering
 and breeding law is amended by adding a  new  paragraph  j  to  read  as
 follows:
   J. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND TO SUPPORT AND PROMOTE
 THE  ONGOING  CARE  OF  RETIRED HORSES, PROVIDED, HOWEVER, THAT THE FUND
 SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES.
   § 3. This act shall take effect immediately.
 
                                  PART GG
 
   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 OO of chapter 59 of the laws of 2017,  is  amended  to  read  as
 follows:

 S. 7509--A                         66                         A. 9509--A
 
   (a)  Any  racing  association  or  corporation  or  regional off-track
 betting corporation, authorized to conduct  pari-mutuel  wagering  under
 this  chapter, desiring to display the simulcast of horse races on which
 pari-mutuel betting shall be permitted in the manner and subject to  the
 conditions  provided for in this article may apply to the commission for
 a license so to do. Applications for licenses shall be in such  form  as
 may  be  prescribed by the commission and shall contain such information
 or other material or evidence as the commission may require. No  license
 shall be issued by the commission authorizing the simulcast transmission
 of  thoroughbred  races  from a track located in Suffolk county. The fee
 for such licenses shall be five hundred dollars per  simulcast  facility
 and  for  account wagering licensees that do not operate either a simul-
 cast facility that is open to the public within the state of New York or
 a licensed racetrack within the state, twenty thousand dollars per  year
 payable  by  the licensee to the commission for deposit into the general
 fund. Except as provided in  this  section,  the  commission  shall  not
 approve any application to conduct simulcasting into individual or group
 residences,  homes  or  other areas for the purposes of or in connection
 with pari-mutuel wagering. The commission may approve simulcasting  into
 residences,  homes or other areas to be conducted jointly by one or more
 regional off-track betting corporations and one or more of  the  follow-
 ing:  a  franchised  corporation,  thoroughbred  racing corporation or a
 harness racing corporation or association; provided (i) the simulcasting
 consists only of those races on which pari-mutuel betting is  authorized
 by  this  chapter  at  one  or more simulcast facilities for each of the
 contracting off-track betting corporations which  shall  include  wagers
 made  in  accordance  with  section  one  thousand fifteen, one thousand
 sixteen and one thousand seventeen of  this  article;  provided  further
 that  the  contract  provisions or other simulcast arrangements for such
 simulcast facility shall be no less favorable than those  in  effect  on
 January  first,  two  thousand  five;  (ii)  that each off-track betting
 corporation having within its  geographic  boundaries  such  residences,
 homes  or  other  areas  technically  capable of receiving the simulcast
 signal shall be a contracting party; (iii) the distribution of  revenues
 shall  be  subject  to  contractual agreement of the parties except that
 statutory payments to  non-contracting  parties,  if  any,  may  not  be
 reduced;  provided,  however,  that nothing herein to the contrary shall
 prevent a track from televising its races on an irregular basis primari-
 ly for promotional or marketing purposes as found by the commission. For
 purposes of this paragraph, the provisions of section one thousand thir-
 teen of this article shall  not  apply.  Any  agreement  authorizing  an
 in-home simulcasting experiment commencing prior to May fifteenth, nine-
 teen hundred ninety-five, may, and all its terms, be extended until June
 thirtieth, two thousand [eighteen] NINETEEN; 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 [eighteen] NINETEEN; 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

 S. 7509--A                         67                         A. 9509--A

 section  2  of  part OO of chapter 59 of the laws of 2017, 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 [eighteen] NINETEEN, the amount used exclusively
 for purses to be awarded at races  conducted  by  such  receiving  track
 shall  be computed as follows: of the sums so retained, two and one-half
 percent of the total pools. Such amount shall be increased or  decreased
 in  the  amount  of fifty percent of the difference in total commissions
 determined by comparing the total commissions available after July twen-
 ty-first, nineteen hundred ninety-five to  the  total  commissions  that
 would  have  been  available  to  such track prior to July twenty-first,
 nineteen hundred ninety-five.
   § 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 OO of chapter 59 of the laws of 2017,  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 [eighteen] NINETEEN and on any day regardless of
 whether or not a franchised corporation is conducting a race meeting  in
 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
 two  thousand  [eighteen]  NINETEEN.  On  any  day on which a franchised
 corporation has not scheduled a racing program but a thoroughbred racing
 corporation located within the state is conducting  racing,  every  off-
 track  betting corporation branch office and every simulcasting facility
 licensed in accordance  with  section  one  thousand  seven  (that  have
 entered  into  a  written  agreement with such facility's representative
 horsemen's 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 OO of  chapter  59  of
 the laws of 2017, 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 [eighteen] NINETEEN. 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  OO  of  chapter  59 of the laws of 2017, 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  [eighteen]  NINETEEN. 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-

 S. 7509--A                         68                         A. 9509--A
 
 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 OO of chapter
 59 of the laws of 2017, is amended to read as follows:
   Notwithstanding  any  other  provision of this chapter, for the period
 July twenty-fifth, two thousand one through September eighth, two  thou-
 sand [seventeen] EIGHTEEN, 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 OO of chapter  59  of  the
 laws of 2017, 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,  [2018]  2019;  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 OO of chapter 59 of the laws of 2017, 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, [2018] 2019; and section eighteen of  this
 act  shall take effect on July 1, 2008 and sections fifty-one and fifty-
 two of this act shall take effect as of the same date as chapter 772  of
 the laws of 1989 took effect.

 S. 7509--A                         69                         A. 9509--A
 
   §  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
 OO of chapter 59 of the laws of 2017, is amended to read as follows:
   (a)  The  franchised  corporation  authorized  under  this  chapter to
 conduct pari-mutuel betting at a race meeting or races run thereat shall
 distribute all sums deposited in any pari-mutuel pool to the holders  of
 winning  tickets therein, provided such tickets be presented for payment
 before April first of the year following the  year  of  their  purchase,
 less  an  amount  which  shall be established and retained by such fran-
 chised corporation of between twelve to  seventeen  per  centum  of  the
 total  deposits in pools resulting from on-track regular bets, and four-
 teen to twenty-one per centum of the total deposits in  pools  resulting
 from on-track multiple bets and fifteen to twenty-five per centum of the
 total  deposits in pools resulting from on-track exotic bets and fifteen
 to thirty-six per centum of the total deposits in pools  resulting  from
 on-track  super  exotic  bets, plus the breaks. The retention rate to be
 established is subject to the prior approval of the  gaming  commission.
 Such  rate  may not be changed more than once per calendar quarter to be
 effective on the first day of the calendar quarter.  "Exotic  bets"  and
 "multiple  bets"  shall  have  the  meanings  set  forth in section five
 hundred nineteen of this chapter. "Super exotic  bets"  shall  have  the
 meaning  set  forth  in  section  three hundred one of this chapter. For
 purposes of this section, a "pick six bet" shall mean a  single  bet  or
 wager on the outcomes of six races. The breaks are hereby defined as the
 odd  cents over any multiple of five for payoffs greater than one dollar
 five cents but less than five dollars, over  any  multiple  of  ten  for
 payoffs  greater  than  five  dollars but less than twenty-five dollars,
 over any multiple of twenty-five for payoffs  greater  than  twenty-five
 dollars but less than two hundred fifty dollars, or over any multiple of
 fifty  for  payoffs over two hundred fifty dollars. Out of the amount so
 retained there shall be paid  by  such  franchised  corporation  to  the
 commissioner  of  taxation and finance, as a reasonable tax by the state
 for the privilege of conducting pari-mutuel betting on the races run  at
 the  race  meetings  held  by such franchised corporation, the following
 percentages of the total pool for regular and  multiple  bets  five  per
 centum  of regular bets and four per centum of multiple bets plus twenty
 per centum of the breaks; for  exotic  wagers  seven  and  one-half  per
 centum  plus  twenty per centum of the breaks, and for super exotic bets
 seven and one-half per centum plus fifty per centum of the  breaks.  For
 the  period  June  first, nineteen hundred ninety-five through September
 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
 three per centum and such tax on multiple wagers shall be two  and  one-
 half  per  centum,  plus twenty per centum of the breaks. For the period
 September tenth, nineteen  hundred  ninety-nine  through  March  thirty-
 first,  two  thousand  one, such tax on all wagers shall be two and six-
 tenths per centum and for the  period  April  first,  two  thousand  one
 through  December  thirty-first,  two thousand [eighteen] NINETEEN, 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

 S. 7509--A                         70                         A. 9509--A
 
 first, two thousand one  through  December  thirty-first,  two  thousand
 [eighteen]  NINETEEN,  such  payment  shall  be  seven-tenths of one per
 centum of such pools.
   § 10. This act shall take effect immediately.
 
                                  PART HH
 
   Section  1.  Subdivision 4 of section 97-nnnn of the state finance law
 is REPEALED.
   § 2. Subdivisions 5 and 6 of section 97-nnnn of the state finance  law
 are renumbered subdivisions 4 and 5.
   § 3. This act shall take effect April 1, 2018.
 
                                  PART II
 
   Section  1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision
 b of section 1612 of the tax law are REPEALED  and  a  new  subparagraph
 (ii) is added to read as follows:
   (II) LESS A VENDOR'S FEE THE AMOUNT OF WHICH IS TO BE PAID FOR SERVING
 AS A LOTTERY AGENT TO THE TRACK OPERATOR OF A VENDOR TRACK OR THE OPERA-
 TOR  OF  ANY  OTHER VIDEO LOTTERY GAMING FACILITY AUTHORIZED PURSUANT TO
 SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE:
   (A) WHEN A VENDOR TRACK IS LOCATED  WITHIN  DEVELOPMENT  ZONE  ONE  AS
 DEFINED  BY  SECTION  THIRTEEN  HUNDRED  TEN  OF THE RACING, PARI-MUTUEL
 WAGERING AND BREEDING LAW, AT A RATE OF THIRTY-NINE AND ONE-HALF PERCENT
 OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER;
   (B) WHEN A VENDOR TRACK IS LOCATED  WITHIN  DEVELOPMENT  ZONE  TWO  AS
 DEFINED  BY  SECTION  THIRTEEN  HUNDRED  TEN  OF THE RACING, PARI-MUTUEL
 WAGERING AND BREEDING LAW, AT A RATE OF FORTY-THREE AND ONE-HALF PERCENT
 OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER; PROVIDED, HOWEVER, AT A VENDOR  TRACK  LOCATED
 WITHIN  FIFTEEN MILES OF A DESTINATION RESORT GAMING FACILITY AUTHORIZED
 PURSUANT TO ARTICLE THIRTEEN OF THE  RACING,  PARI-MUTUEL  WAGERING  AND
 BREEDING LAW OR THAT IS LOCATED MORE THAN FIFTEEN MILES BUT WITHIN FIFTY
 MILES  OF  A  NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25
 U.S.C. § 2703 (8) SHALL RECEIVE A VENDOR FEE  AT  A  RATE  OF  FIFTY-ONE
 PERCENT  OF  THE  TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT
 FOR PRIZES PURSUANT TO THIS CHAPTER; AND THAT AT A VENDOR TRACK  LOCATED
 WITHIN  FIFTEEN  MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS
 DEFINED IN 25 U.S.C. § 2703 (8) SHALL RECEIVE A VENDOR FEE AT A RATE  OF
 FIFTY-SIX PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER
 PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
   (C)  WHEN  A VIDEO LOTTERY FACILITY IS OPERATED AT AQUEDUCT RACETRACK,
 AT A RATE OF FORTY-SEVEN PERCENT OF THE TOTAL  REVENUE  WAGERED  AT  THE
 VIDEO  LOTTERY  GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS
 CHAPTER; PROVIDED, HOWEVER, UPON 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 ARTICLE  OR
 APRIL  FIRST, TWO THOUSAND NINETEEN, SUCH RATE SHALL BE FIFTY PERCENT OF
 THE TOTAL REVENUE WAGERED AT THE VIDEO  LOTTERY  GAMING  FACILITY  AFTER
 PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
   (D)  WHEN  A VIDEO LOTTERY GAMING FACILITY IS LOCATED IN EITHER NASSAU
 OR SUFFOLK COUNTIES AND IS OPERATED BY A CORPORATION ESTABLISHED  PURSU-
 ANT  TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND
 BREEDING LAW, AT A RATE OF  FORTY-FIVE  PERCENT  OF  THE  TOTAL  REVENUE

 S. 7509--A                         71                         A. 9509--A
 
 WAGERED  AT  THE  VIDEO  LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER;
   (E)  NOTWITHSTANDING  ANY  PROVISION  OF  LAW  TO THE CONTRARY, WHEN A
 VENDOR TRACK IS LOCATED WITHIN REGION ONE OR  TWO  OF  DEVELOPMENT  ZONE
 TWO,  AS  SUCH  ZONE  IS  DEFINED IN SECTION THIRTEEN HUNDRED TEN OF THE
 RACING, PARI-MUTUEL WAGERING AND BREEDING  LAW,  OR  IS  LOCATED  WITHIN
 REGION  SIX  OF  SUCH DEVELOPMENT ZONE TWO AND IS LOCATED WITHIN ONTARIO
 COUNTY, SUCH VENDOR TRACK SHALL BE ENTITLED  TO  RECEIVE  AN  ADDITIONAL
 COMMISSION. THE ADDITIONAL COMMISSION RECEIVED BY THE VENDOR TRACK SHALL
 BE THE ADJUSTED COMMISSION CALCULATED PURSUANT TO SUBCLAUSE (II) OF THIS
 CLAUSE; PROVIDED, HOWEVER, THE ADDITIONAL COMMISSION SHALL NOT EXCEED AN
 AMOUNT CALCULATED PURSUANT TO SUBCLAUSE (I) OF THIS CLAUSE.
   (I)  THE  MAXIMUM  ADDITIONAL  COMMISSION  PAYABLE FOR ANY FISCAL YEAR
 SHALL BE AN AMOUNT EQUAL TO  THE  BASE  VENDOR  FEE  LESS  THE  ADJUSTED
 CURRENT VENDOR FEE. THE ADJUSTED CURRENT VENDOR FEE IS CALCULATED AS THE
 VENDOR  FEE  THAT  THE  FACILITY  WOULD HAVE RECEIVED DURING THE CURRENT
 FISCAL YEAR UNDER THE PAYMENT SCHEDULE ESTABLISHED BY THIS PARAGRAPH  AS
 IT  EXISTED  ON  MARCH  THIRTY-FIRST,  TWO  THOUSAND SEVENTEEN. THE BASE
 VENDOR FEE IS CALCULATED AS THE VENDOR FEE THAT  THE  FACILITY  RECEIVED
 DURING  THE  TWELVE-MONTH  PERIOD IMMEDIATELY PRECEDING THE OPENING OF A
 GAMING FACILITY IN THE SAME REGION AS THE VENDOR TRACK. FOR THE PURPOSES
 OF THIS CALCULATION,  A  VENDOR  FEE  SHALL  EXCLUDE  ANY  DISTRIBUTIONS
 REQUIRED  BY PARAGRAPH TWO OF THIS SUBDIVISION. FOR THE PURPOSES OF THIS
 CLAUSE, SENECA AND WAYNE COUNTIES SHALL BE DEEMED TO BE  LOCATED  WITHIN
 REGION SIX OF DEVELOPMENT ZONE TWO.
   (II)  THE  ADJUSTED  COMMISSION  IS  A PERCENTAGE OF THE TOTAL REVENUE
 WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR  PRIZES  PURSUANT  TO  THIS
 CHAPTER.  THAT PERCENTAGE IS CALCULATED BY SUBTRACTING THE EFFECTIVE TAX
 RATE ON ALL GROSS GAMING REVENUE PAID BY A GAMING  FACILITY  WITHIN  THE
 SAME  REGION  AS  THE  VENDOR  TRACK  FROM THE EDUCATION PERCENTAGE. THE
 EDUCATION PERCENTAGE IS NINETY PERCENT LESS THE PERCENTAGE OF THE VENDOR
 TRACK'S VENDOR FEE. FOR PURPOSES OF THIS CLAUSE, SENECA AND WAYNE  COUN-
 TIES SHALL BE DEEMED TO BE LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE
 TWO.
   (III)  THE  ADDITIONAL  COMMISSION  PAID PURSUANT TO THIS SUBPARAGRAPH
 SHALL COMMENCE WITH THE STATE FISCAL YEAR ENDING ON MARCH  THIRTY-FIRST,
 TWO  THOUSAND EIGHTEEN AND SHALL BE PAID TO A VENDOR TRACK NO LATER THAN
 SIXTY DAYS AFTER THE CLOSE OF THE FISCAL YEAR. THE ADDITIONAL COMMISSION
 AUTHORIZED BY THIS CLAUSE SHALL ONLY BE APPLIED TO REVENUE WAGERED AT  A
 VENDOR  TRACK  WHILE A GAMING FACILITY IN THE SAME REGION AS THAT VENDOR
 TRACK IS OPEN AND OPERATING PURSUANT TO AN OPERATION CERTIFICATE  ISSUED
 PURSUANT  TO SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING, PARI-MU-
 TUEL WAGERING AND BREEDING LAW.
   (F) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,  ANY  OPERA-
 TORS  OF  A  VENDOR  TRACK  OR  THE OPERATORS OF ANY OTHER VIDEO LOTTERY
 GAMING FACILITY ELIGIBLE TO RECEIVE A CAPITAL AWARD AS OF DECEMBER THIR-
 TY-FIRST, TWO THOUSAND SEVENTEEN SHALL DEPOSIT  FROM  THEIR  VENDOR  FEE
 INTO  A  SEGREGATED ACCOUNT AN AMOUNT EQUAL TO FOUR PERCENT OF THE FIRST
 SIXTY-TWO MILLION FIVE HUNDRED THOUSAND DOLLARS OF  REVENUE  WAGERED  AT
 THE  VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER TO BE
 USED EXCLUSIVELY FOR CAPITAL INVESTMENTS,  EXCEPT  FOR  AQUEDUCT,  WHICH
 SHALL  DEPOSIT  INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO ONE PERCENT
 OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING 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

 S. 7509--A                         72                         A. 9509--A
 
 ARTICLE OR APRIL FIRST, TWO THOUSAND NINETEEN, WHEN AT  SUCH  TIME  FOUR
 PERCENT  OF  ALL  REVENUE  WAGERED  AT THE VIDEO LOTTERY GAMING FACILITY
 AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE DEPOSITED INTO
 A  SEGREGATED  ACCOUNT  FOR CAPITAL INVESTMENTS. VENDOR TRACKS AND VIDEO
 LOTTERY GAMING FACILITIES SHALL  BE  PERMITTED  TO  WITHDRAW  FUNDS  FOR
 PROJECTS  APPROVED  BY  THE  COMMISSION TO IMPROVE THE FACILITIES OF THE
 VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY WHICH ENHANCE OR  MAINTAIN
 THE  VIDEO LOTTERY GAMING FACILITY INCLUDING, BUT NOT LIMITED TO HOTELS,
 OTHER LODGING FACILITIES, ENTERTAINMENT FACILITIES,  RETAIL  FACILITIES,
 DINING FACILITIES, EVENTS ARENAS, PARKING GARAGES AND OTHER IMPROVEMENTS
 AND  AMENITIES  CUSTOMARY  TO  A GAMING FACILITY, PROVIDED, HOWEVER, THE
 VENDOR TRACKS AND VIDEO LOTTERY GAMING FACILITIES SHALL BE PERMITTED  TO
 WITHDRAW  FUNDS  FOR  UNREIMBURSED  CAPITAL AWARDS APPROVED PRIOR TO THE
 EFFECTIVE DATE OF THIS SUBPARAGRAPH. ANY PROCEEDS FROM  THE  DIVESTITURE
 OF  ANY ASSETS ACQUIRED THROUGH THESE CAPITAL FUNDS OR ANY PRIOR CAPITAL
 AWARD MUST BE DEPOSITED INTO THIS SEGREGATED ACCOUNT, PROVIDED  THAT  IF
 THE  VENDOR  TRACK  OR  VIDEO LOTTERY GAMING FACILITY CEASES USE OF SUCH
 ASSET FOR GAMING PURPOSES OR TRANSFERS THE ASSET  TO  A  RELATED  PARTY,
 SUCH  VENDOR  TRACK  OR  VIDEO  LOTTERY GAMING FACILITY SHALL DEPOSIT AN
 AMOUNT EQUAL TO THE FAIR MARKET VALUE OF THAT ASSET INTO THE ACCOUNT. IN
 THE EVENT A VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY CEASES  GAMING
 OPERATIONS, ANY BALANCE IN THE ACCOUNT ALONG WITH AN AMOUNT EQUAL TO THE
 VALUE  OF ALL REMAINING ASSETS ACQUIRED THROUGH THIS FUND OR PRIOR CAPI-
 TAL AWARDS SHALL BE RETURNED TO THE STATE FOR  DEPOSIT  INTO  THE  STATE
 LOTTERY  FUND FOR EDUCATION AID, EXCEPT FOR AQUEDUCT, WHICH SHALL RETURN
 TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR  EDUCATION  AID
 ALL AMOUNTS IN EXCESS OF THE AMOUNT NEEDED TO FUND A PROJECT PURSUANT TO
 AN  AGREEMENT WITH THE OPERATOR TO CONSTRUCT AN EXPANSION OF THE FACILI-
 TY, HOTEL, AND CONVENTION AND EXHIBITION SPACE REQUIRING A MINIMUM CAPI-
 TAL INVESTMENT OF THREE  HUNDRED  MILLION  DOLLARS  AND  ANY  SUBSEQUENT
 AMENDMENTS  TO SUCH AGREEMENT. THE COMPTROLLER OR HIS LEGALLY AUTHORIZED
 REPRESENTATIVE IS AUTHORIZED TO AUDIT ANY AND ALL EXPENDITURES MADE  OUT
 OF  THESE  SEGREGATED CAPITAL ACCOUNTS. NOTWITHSTANDING THE PRECEDING, A
 VENDOR TRACK LOCATED IN ONTARIO COUNTY MAY WITHDRAW UP  TO  TWO  MILLION
 DOLLARS  FROM THIS ACCOUNT FOR THE PURPOSE OF CONSTRUCTING A TURF COURSE
 AT THE VENDOR TRACK.
   (G) NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRARY,  FREE  PLAY
 ALLOWANCE  CREDITS  AUTHORIZED BY THE DIVISION PURSUANT TO SUBDIVISION F
 OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF  THIS  ARTICLE  SHALL  NOT  BE
 INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY
 GAMES,  THE TOTAL AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR FEES
 PAYABLE TO THE OPERATORS OF VIDEO LOTTERY GAMING FACILITIES, FEES  PAYA-
 BLE  TO  THE  DIVISION'S  VIDEO LOTTERY GAMING EQUIPMENT CONTRACTORS, OR
 RACING SUPPORT PAYMENTS.
   (H) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERATOR
 OF A VENDOR TRACK OR THE OPERATOR OF  ANY  OTHER  VIDEO  LOTTERY  GAMING
 FACILITY  SHALL  FUND  A  MARKETING  AND  PROMOTION  PROGRAM  OUT OF THE
 VENDOR'S FEE. EACH OPERATOR SHALL SUBMIT AN ANNUAL  MARKETING  PLAN  FOR
 THE  REVIEW  AND APPROVAL OF THE COMMISSION AND ANY OTHER REQUIRED DOCU-
 MENTS DETAILING PROMOTIONAL ACTIVITIES AS PRESCRIBED BY THE  COMMISSION.
 THE  COMMISSION  SHALL  HAVE  THE  RIGHT  TO REJECT ANY ADVERTISEMENT OR
 PROMOTION THAT DOES NOT PROPERLY REPRESENT THE MISSION OR  INTERESTS  OF
 THE LOTTERY OR ITS PROGRAMS.
   (I)  NOTWITHSTANDING  CLAUSE  (F) OF THIS SUBPARAGRAPH, THE COMMISSION
 SHALL BE ABLE TO AUTHORIZE A VENDOR TRACK LOCATED WITHIN ONEIDA  COUNTY,
 WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, AND

 S. 7509--A                         73                         A. 9509--A
 
 WHO  HAS  MAINTAINED  AT  LEAST  NINETY  PERCENT OF FULL-TIME EQUIVALENT
 EMPLOYEES AS THEY EMPLOYED IN THE YEAR TWO THOUSAND SIXTEEN, TO WITHDRAW
 FUNDS FROM THE SEGREGATED ACCOUNT ESTABLISHED  IN  CLAUSE  (F)  OF  THIS
 SUBPARAGRAPH  UP TO AN AMOUNT EQUAL TO FOUR PERCENT OF THE TOTAL REVENUE
 WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR  PRIZES  PURSUANT  TO  THIS
 CHAPTER EACH YEAR, FOR OPERATIONS.
   § 2. This act shall take effect immediately; provided, however, clause
 (I) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612
 of  the  tax law as added by section one of this act shall expire and be
 deemed repealed June 29, 2019.
 
                                  PART JJ
 
   Section 1. Subsection (a) of section 614 of the tax law, as amended by
 chapter 170 of the laws of 1994, is amended to read as follows:
   (a) Unmarried individual. For taxable years beginning  after  nineteen
 hundred  ninety-six, the New York standard deduction of a resident indi-
 vidual who is not married nor the head of a household  nor  a  surviving
 spouse nor an individual [whose federal exemption amount is zero] WHO IS
 CLAIMED AS A DEPENDENT BY ANOTHER NEW YORK STATE TAXPAYER shall be seven
 thousand  five  hundred dollars; for taxable years beginning in nineteen
 hundred ninety-six, such standard deduction shall be seven thousand four
 hundred dollars; for taxable years beginning in nineteen  hundred  nine-
 ty-five,  such  standard  deduction  shall  be  six thousand six hundred
 dollars; and for taxable years beginning after nineteen hundred  eighty-
 nine  and  before  nineteen hundred ninety-five, such standard deduction
 shall be six thousand dollars.
   § 2. Section 612  of  the  tax  law  is  amended  by  adding  two  new
 subsections (w) and (x) to read as follows:
   (W)  ALIMONY  MODIFICATIONS.  (1) IN THE CASE OF APPLICABLE ALIMONY OR
 SEPARATE MAINTENANCE PAYMENTS, THE FOLLOWING MODIFICATIONS SHALL APPLY:
   (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS  INCOME  ANY
 APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS MADE BY THE TAXPAYER
 DURING THE TAXABLE YEAR.
   (B) THERE SHALL BE ADDED TO FEDERAL ADJUSTED GROSS INCOME ANY APPLICA-
 BLE  ALIMONY  OR  SEPARATE MAINTENANCE PAYMENTS RECEIVED BY THE TAXPAYER
 DURING THE TAXABLE YEAR.
   (2) (A) THE TERM "ALIMONY  OR  SEPARATE  MAINTENANCE  PAYMENTS"  MEANS
 PAYMENTS  AS  DEFINED  UNDER SECTION SEVENTY-ONE OF THE INTERNAL REVENUE
 CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97.
   (B) THE TERM "APPLICABLE ALIMONY  OR  SEPARATE  MAINTENANCE  PAYMENTS"
 MEANS  PAYMENTS  MADE  UNDER  AN  ALIMONY  OR  SEPARATION INSTRUMENT (AS
 DEFINED IN SECTION SEVENTY-ONE OF THE INTERNAL REVENUE  CODE  IN  EFFECT
 IMMEDIATELY  PRIOR  TO  THE  ENACTMENT  OF  PUBLIC  LAW 115-97) THAT WAS
 EXECUTED AFTER DECEMBER THIRTY-FIRST, TWO  THOUSAND  EIGHTEEN,  AND  ANY
 DIVORCE  OR  SEPARATION  INSTRUMENT  EXECUTED ON OR BEFORE SUCH DATE AND
 MODIFIED AFTER SUCH DATE IF THE MODIFICATION EXPRESSLY PROVIDES THAT THE
 AMENDMENTS MADE BY THIS SECTION APPLY TO SUCH MODIFICATION.
   (X) QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES. (1) IN
 THE CASE OF APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING
 EXPENSES, THE FOLLOWING MODIFICATIONS SHALL APPLY:
   (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS  INCOME  ANY
 APPLICABLE  QUALIFIED  MOVING  EXPENSE  REIMBURSEMENT  RECEIVED  BY  THE
 TAXPAYER DURING THE TAXABLE YEAR.
   (B) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS  INCOME  ANY
 APPLICABLE MOVING EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR.

 S. 7509--A                         74                         A. 9509--A
 
   (2)  APPLICABLE  QUALIFIED  MOVING  EXPENSE  REIMBURSEMENT  AND MOVING
 EXPENSES ARE THOSE DEDUCTIONS AS ALLOWED BY PARAGRAPH  (G)  OF  SECTIONS
 ONE  HUNDRED THIRTY-TWO AND SECTION TWO HUNDRED SEVENTEEN, RESPECTFULLY,
 OF THE INTERNAL REVENUE CODE  IMMEDIATELY  PRIOR  TO  THE  ENACTMENT  OF
 PUBLIC LAW 115-97.
   §  3.  Subsection  (a)  of  section  615 of the tax law, as amended by
 section 1 of part HH of chapter 57 of the laws of 2010,  is  amended  to
 read as follows:
   (a)  General.  If  federal  taxable income of a resident individual is
 determined by itemizing deductions  OR  CLAIMING  THE  FEDERAL  STANDARD
 DEDUCTION  from  his OR HER federal adjusted gross income, he OR SHE may
 elect to deduct his OR HER New York itemized deduction [in lieu  of]  OR
 CLAIM  his  OR  HER  New  York standard deduction. The New York itemized
 deduction of a resident individual means the total amount of his OR  HER
 deductions from federal adjusted gross income ALLOWED, other than feder-
 al  deductions  for  personal exemptions, as provided in the laws of the
 United States for the taxable year,  AS SUCH  DEDUCTIONS  EXISTED  IMME-
 DIATELY  PRIOR  TO THE ENACTMENT OF PUBLIC LAW 115-97 with the modifica-
 tions  specified  in  this  section,  except  as  provided   for   under
 subsections (f) and (g) of this section.
   §  4. Subdivision (a) of section 11-1714 of the administrative code of
 the city of New York, as amended by chapter 170 of the laws of 1994,  is
 amended to read as follows:
   (a)  Unmarried  individual. For taxable years beginning after nineteen
 hundred ninety-six, the city standard deduction of a city resident indi-
 vidual who is not married nor the head of a household  nor  a  surviving
 spouse nor an individual [whose federal exemption amount is zero] WHO IS
 CLAIMED AS A DEPENDENT BY ANOTHER NEW YORK STATE TAXPAYER shall be seven
 thousand  five  hundred dollars; for taxable years beginning in nineteen
 hundred ninety-six, such standard deduction shall be seven thousand four
 hundred dollars; for taxable years beginning in nineteen  hundred  nine-
 ty-five,  such  standard  deduction  shall  be  six thousand six hundred
 dollars; and for taxable years beginning after nineteen hundred  eighty-
 nine  and  before  nineteen hundred ninety-five, such standard deduction
 shall be six thousand dollars.
   § 5. Section 11-1712 of the administrative code of  the  city  of  New
 York  is  amended  by adding two new subdivisions (u) and (v) to read as
 follows:
   (U) ALIMONY MODIFICATIONS. (1) IN THE CASE OF  APPLICABLE  ALIMONY  OR
 SEPARATE MAINTENANCE PAYMENTS, THE FOLLOWING MODIFICATIONS SHALL APPLY:
   (A)  THERE  SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY
 APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS MADE BY THE TAXPAYER
 DURING THE TAXABLE YEAR.
   (B) THERE SHALL BE ADDED TO FEDERAL ADJUSTED GROSS INCOME ANY APPLICA-
 BLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS RECEIVED  BY  THE  TAXPAYER
 DURING THE TAXABLE YEAR.
   (2)  (A)  THE  TERM  "ALIMONY  OR SEPARATE MAINTENANCE PAYMENTS" MEANS
 PAYMENTS AS DEFINED UNDER SECTION SEVENTY-ONE OF  THE  INTERNAL  REVENUE
 CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97.
   (B)  THE  TERM  "APPLICABLE  ALIMONY OR SEPARATE MAINTENANCE PAYMENTS"
 MEANS PAYMENTS MADE  UNDER  AN  ALIMONY  OR  SEPARATION  INSTRUMENT  (AS
 DEFINED  IN  SECTION  SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT
 IMMEDIATELY PRIOR TO THE  ENACTMENT  OF  PUBLIC  LAW  115-97)  THAT  WAS
 EXECUTED  AFTER  DECEMBER  THIRTY-FIRST,  TWO THOUSAND EIGHTEEN, AND ANY
 DIVORCE OR SEPARATION INSTRUMENT EXECUTED ON OR  BEFORE  SUCH  DATE  AND

 S. 7509--A                         75                         A. 9509--A
 
 MODIFIED AFTER SUCH DATE IF THE MODIFICATION EXPRESSLY PROVIDES THAT THE
 AMENDMENTS MADE BY THIS SECTION APPLY TO SUCH MODIFICATION.
   (V) QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES. (1) IN
 THE CASE OF APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING
 EXPENSES, THE FOLLOWING MODIFICATIONS SHALL APPLY:
   (A)  THERE  SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY
 APPLICABLE  QUALIFIED  MOVING  EXPENSE  REIMBURSEMENT  RECEIVED  BY  THE
 TAXPAYER DURING THE TAXABLE YEAR.
   (B)  THERE  SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY
 APPLICABLE MOVING EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR.
   (2) APPLICABLE  QUALIFIED  MOVING  EXPENSE  REIMBURSEMENT  AND  MOVING
 EXPENSES ARE THOSE DEDUCTIONS AS ALLOWED BY PARAGRAPH (G) OF SECTION ONE
 HUNDRED  THIRTY-TWO  AND SECTION TWO HUNDRED SEVENTEEN, RESPECTFULLY, OF
 THE INTERNAL REVENUE CODE IMMEDIATELY PRIOR TO THE ENACTMENT  OF  PUBLIC
 LAW 115-97.
   §  6. Subdivision (a) of section 11-1715 of the administrative code of
 the city of New York, as amended by section 5 of part HH of  chapter  57
 of the laws of 2010, is amended to read as follows:
   (a)  General.  If federal taxable income of a city resident individual
 is determined by itemizing deductions OR CLAIMING THE  FEDERAL  STANDARD
 DEDUCTION  from  his OR HER federal adjusted gross income, such resident
 individual may elect to deduct his OR HER city  itemized  deduction  [in
 lieu  of] OR CLAIM his OR HER city standard deduction. The city itemized
 deduction of a city resident individual means the total amount of his OR
 HER deductions from federal adjusted gross income  ALLOWED,  other  than
 federal  deductions  for personal exemptions, as provided in the laws of
 the United States for the taxable year, AS SUCH DEDUCTIONS EXISTED IMME-
 DIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97 with  the  modifica-
 tions  specified  in this section, except as provided for under subdivi-
 sions (f) and (g) of this section.
   § 7. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART KK
 
   Section 1. Paragraph (b) of subdivision 6-a of section 208 of the  tax
 law,  as  amended  by section 5-a of part T of chapter 59 of the laws of
 2015, is amended to read as follows:
   (b) "Exempt CFC income" means (I) the income required to  be  included
 in  the  taxpayer's  federal  gross income pursuant to subsection (a) of
 section 951 of the internal revenue code, received  from  a  corporation
 that  is  conducting  a  unitary  business  with the taxpayer but is not
 included in a combined report with the taxpayer, AND (II) TO THE  EXTENT
 NOT INCLUDED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH, SUCH INCOME REQUIRED
 TO  BE  INCLUDED  IN  THE  TAXPAYER'S  FEDERAL  GROSS INCOME PURSUANT TO
 SUBSECTION (A) OF SUCH SECTION 951  OF  THE  INTERNAL  REVENUE  CODE  BY
 REASON OF SUBSECTION (A) OF SECTION 965 OF THE INTERNAL REVENUE CODE, AS
 ADJUSTED  BY SUBSECTION (B) OF SECTION 965 OF THE INTERNAL REVENUE CODE,
 AND WITHOUT REGARD TO SUBSECTION (C) OF SUCH SECTION,  RECEIVED  FROM  A
 CORPORATION THAT IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER,
 less,  (III)  in  the  discretion  of  the  commissioner,  any  interest
 deductions directly or indirectly attributable to that income.  In  lieu
 of  subtracting  from its exempt CFC income the amount of those interest
 deductions, the taxpayer may make a revocable  election  to  reduce  its
 total  exempt  CFC  income  by forty percent. If the taxpayer makes this
 election, the taxpayer must also make  the  elections  provided  for  in

 S. 7509--A                         76                         A. 9509--A
 
 paragraph  (b)  of  subdivision six of this section and paragraph (c) of
 this subdivision. If the taxpayer subsequently  revokes  this  election,
 the  taxpayer must revoke the elections provided for in paragraph (b) of
 subdivision six of this section and paragraph (c) of this subdivision. A
 taxpayer  which does not make this election because it has no exempt CFC
 income will not be precluded from making those other elections.
   § 2. Subparagraph 6 of paragraph (a) of subdivision 9 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:
   (6) any amount treated as dividends pursuant to section  seventy-eight
 of  the  internal revenue code TO THE EXTENT THAT SUCH DIVIDENDS ARE NOT
 INCLUDED IN THE COMPUTATION OF THE DEDUCTION ALLOWED UNDER  SECTION  TWO
 HUNDRED FIFTY OF SUCH CODE;
   §  3.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
 amended by adding a new subparagraph 23 to read as follow:
   (23)  THE  AMOUNT  OF  ANY  FEDERAL  DEDUCTION  ALLOWED  PURSUANT   TO
 SUBSECTION (C) OF SECTION 965 OF THE INTERNAL REVENUE CODE.
   §  4. Paragraph 1 of subsection (c) of section 1085 of the tax law, as
 amended by section 13-a of part Q of chapter 60 of the laws of 2016,  is
 amended to read as follows:
   (1) If any taxpayer fails to file a declaration of estimated tax under
 article  nine-A  of  this chapter, or fails to pay all or any part of an
 amount which is applied as an installment against such estimated tax, it
 shall be deemed to have made an underpayment  of  estimated  tax.  There
 shall  be  added to the tax for the taxable year an amount at the under-
 payment rate set by the commissioner pursuant to  section  one  thousand
 ninety-six  of  this article, or if no rate is set, at the rate of seven
 and one-half percent per annum upon the amount of the  underpayment  for
 the  period  of the underpayment but not beyond the fifteenth day of the
 [third] FOURTH month following the close of the taxable year.  PROVIDED,
 HOWEVER,  THAT,  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,
 TWO THOUSAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND  EIGHTEEN,
 NO  AMOUNT SHALL BE ADDED TO THE TAX WITH RESPECT TO THE PORTION OF SUCH
 TAX RELATED TO THE AMOUNT OF ANY INTEREST DEDUCTIONS DIRECTLY  OR  INDI-
 RECTLY ATTRIBUTABLE TO THE AMOUNT INCLUDED IN EXEMPT CFC INCOME PURSUANT
 TO  SUBPARAGRAPH  (II)  OF PARAGRAPH (B) OF SUBDIVISION SIX-A OF SECTION
 TWO HUNDRED EIGHT OF THIS CHAPTER OR THE FORTY PERCENT REDUCTION OF SUCH
 EXEMPT CFC INCOME IN  LIEU  OF  INTEREST  ATTRIBUTION  IF  THE  ELECTION
 DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION SIX-A OF SUCH SECTION IS MADE.
 The amount of the underpayment shall be, with respect to any installment
 of  estimated  tax  computed on the basis of either the preceding year's
 tax or the second  preceding  year's  tax,  the  excess  of  the  amount
 required  to be paid over the amount, if any, paid on or before the last
 day prescribed for such payment or, with respect to any  other  install-
 ment of estimated tax, the excess of the amount of the installment which
 would  be required to be paid if the estimated tax were equal to ninety-
 one percent of the tax shown on the return for the taxable year  (or  if
 no  return  was filed, ninety-one percent of the tax for such year) over
 the amount, if any, of the installment paid on or before  the  last  day
 prescribed  for  such  payment.  In  any case in which there would be no
 underpayment  if  "eighty  percent"  were  substituted  for  "ninety-one
 percent"  each  place it appears in this subsection, the addition to the
 tax shall be equal to  seventy-five  percent  of  the  amount  otherwise
 determined.  No  underpayment shall be deemed to exist with respect to a
 declaration or installment otherwise due on or after the termination  of
 existence of the taxpayer.

 S. 7509--A                         77                         A. 9509--A
 
   § 5. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2017.
 
                                  PART LL
 
   Section  1.  The  state finance law is amended by adding a new section
 92-gg to read as follows:
   § 92-GG. CHARITABLE GIFTS TRUST FUND. 1. THERE IS  HEREBY  ESTABLISHED
 IN THE JOINT CUSTODY OF THE COMMISSIONER OF TAXATION AND FINANCE AND THE
 STATE  COMPTROLLER  A  SPECIAL  FUND  PURSUANT TO SECTION ELEVEN OF THIS
 CHAPTER TO BE KNOWN AS THE "CHARITABLE GIFTS TRUST FUND".
   2. MONEYS IN THE CHARITABLE GIFTS TRUST FUND SHALL  BE  KEPT  SEPARATE
 FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF
 THE  COMPTROLLER  OR THE COMMISSIONER OF TAXATION AND FINANCE. PROVIDED,
 HOWEVER THAT ANY MONEYS OF THE FUND NOT REQUIRED FOR IMMEDIATE USE  MAY,
 AT  THE DISCRETION OF THE COMPTROLLER, IN CONSULTATION WITH THE DIRECTOR
 OF THE BUDGET, BE INVESTED BY THE  COMPTROLLER  IN  OBLIGATIONS  OF  THE
 UNITED STATES OR THE STATE. THE PROCEEDS OF ANY SUCH INVESTMENT SHALL BE
 RETAINED BY THE FUND AS ASSETS TO BE USED FOR PURPOSES OF THE FUND.
   3.  EXCEPT  AS SET FORTH IN SUBDIVISIONS TWO AND FOUR OF THIS SECTION,
 NO MONEYS FROM THE CHARITABLE GIFTS TRUST FUND SHALL BE  TRANSFERRED  TO
 ANY  OTHER FUND, NOR SHALL MONEYS FROM THE FUND BE USED TO MAKE PAYMENTS
 FOR ANY PURPOSE OTHER THAN THE PURPOSES SET FORTH  IN  SUBDIVISIONS  TWO
 AND FOUR OF THIS SECTION.
   4.  THE  CHARITABLE  GIFTS  TRUST  FUND  SHALL  HAVE  TWO SEPARATE AND
 DISTINCT ACCOUNTS, AS SET FORTH IN PARAGRAPHS A AND B OF  THIS  SUBDIVI-
 SION.  MONEYS  IN  EACH  OF THE ACCOUNTS SHALL BE KEPT SEPARATE FROM AND
 SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS OF ANY OTHER ACCOUNT WITH-
 IN THE FUND.
   A. THE "HEALTH CHARITABLE ACCOUNT" SHALL CONSIST OF GRANTS,  GIFTS  OR
 BEQUESTS  RECEIVED BY THE STATE, AND ALL OTHER MONEYS CREDITED OR TRANS-
 FERRED THERETO FROM ANY OTHER FUND OR SOURCE.  MONEYS  OF  SUCH  ACCOUNT
 SHALL  ONLY BE EXPENDED FOR THE SUPPORT OF SERVICES RELATING TO PRIMARY,
 PREVENTIVE, AND INPATIENT HEALTH CARE, ROUTINE DENTAL AND  VISION  CARE,
 HUNGER   PREVENTION  AND  NUTRITIONAL  ASSISTANCE,  AND  OTHER  SERVICES
 PROVIDED TO NEW YORK STATE RESIDENTS WITH THE OVERALL GOAL  OF  ENSURING
 THAT  NEW  YORK  STATE  RESIDENTS HAVE ACCESS TO QUALITY HEALTH CARE AND
 OTHER RELATED SERVICES.
   B. THE "ELEMENTARY AND SECONDARY EDUCATION CHARITABLE  ACCOUNT"  SHALL
 CONSIST  OF  GRANTS,  GIFTS  OR  BEQUESTS  RECEIVED BY THE STATE FOR THE
 SUPPORT OF ELEMENTARY AND SECONDARY EDUCATION FOR CHILDREN IN THE  STATE
 AND ALL OTHER MONEYS CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND
 OR  SOURCE.  MONEYS  OF  SUCH  ACCOUNT  SHALL  ONLY  BE EXPENDED FOR THE
 PROVISION OF ELEMENTARY AND SECONDARY  EDUCATION  FOR  CHILDREN  IN  THE
 STATE.
   § 2.  Section 606 of the tax law is amended by adding a new subsection
 (iii) to read as follows:
   (III)  CREDIT  FOR  CONTRIBUTIONS  TO CERTAIN FUNDS. FOR TAXABLE YEARS
 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND NINETEEN, AN  INDIVID-
 UAL  TAXPAYER  SHALL  BE  ALLOWED A CREDIT AGAINST THE TAX IMPOSED UNDER
 THIS ARTICLE FOR AN AMOUNT EQUAL TO EIGHTY-FIVE PERCENT  OF  THE  AMOUNT
 CONTRIBUTED  BY  THE  TAXPAYER  DURING THE IMMEDIATELY PRECEDING TAXABLE
 YEAR TO ANY OR ALL OF THE FOLLOWING ACCOUNTS WITHIN THE CHARITABLE GIFTS
 TRUST FUND SET FORTH IN SECTION NINETY-TWO-GG OF THE STATE FINANCE  LAW:
 THE  HEALTH CHARITABLE ACCOUNT ESTABLISHED BY PARAGRAPH A OF SUBDIVISION
 FOUR OF SECTION NINETY-TWO-GG OF THE STATE FINANCE LAW, OR THE ELEMENTA-

 S. 7509--A                         78                         A. 9509--A
 
 RY AND SECONDARY EDUCATION CHARITABLE ACCOUNT ESTABLISHED BY PARAGRAPH B
 OF SUBDIVISION FOUR OF SECTION NINETY-TWO-GG OF THE STATE FINANCE LAW.
   §  3.  Section  1604  of  the education law is amended by adding a new
 subdivision 44 to read as follows:
   44. TO ESTABLISH A CHARITABLE FUND, BY RESOLUTION OF THE TRUSTEES,  TO
 RECEIVE  CHARITABLE  MONETARY DONATIONS MADE TO SUCH FUND FOR USE BY THE
 DISTRICT FOR GENERAL EDUCATIONAL PURPOSES. THE MONIES OF SUCH CHARITABLE
 FUND SHALL BE DEPOSITED AND SECURED IN THE MANNER  PROVIDED  BY  SECTION
 TEN OF THE GENERAL MUNICIPAL LAW. THE MONIES OF SUCH CHARITABLE FUND MAY
 BE  INVESTED  IN  THE  MANNER  PROVIDED BY SECTION ELEVEN OF THE GENERAL
 MUNICIPAL LAW.   ANY INTEREST EARNED OR CAPITAL  GAIN  REALIZED  ON  THE
 MONEY  SO INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. AT SUCH
 TIME AND IN SUCH AMOUNTS AS DETERMINED BY THE TRUSTEES,  THE  MONIES  OF
 SUCH  CHARITABLE  FUND  SHALL  BE  TRANSFERRED  TO THE SCHOOL DISTRICT'S
 GENERAL FUND FOR EXPENDITURE CONSISTENT WITH THE CHARITABLE PURPOSES  OF
 THE  FUND,  PROVIDED THAT THE AMOUNT OF TAXES TO BE LEVIED BY THE SCHOOL
 DISTRICT FOR ANY SCHOOL YEAR SHALL BE DETERMINED WITHOUT REGARD  TO  ANY
 SUCH  TRANSFER.  THE SCHOOL DISTRICT SHALL MAINTAIN AN ACCOUNTING OF ALL
 SUCH DEPOSITS, INTEREST OR CAPITAL GAIN, TRANSFERS, AND EXPENDITURES.
   § 4. Section 1709 of the education law is  amended  by  adding  a  new
 subdivision 12-b to read as follows:
   12-B.  TO  ESTABLISH A CHARITABLE FUND, BY RESOLUTION OF THE BOARD, TO
 RECEIVE CHARITABLE MONETARY DONATIONS MADE TO SUCH FUND FOR USE  BY  THE
 DISTRICT FOR GENERAL EDUCATIONAL PURPOSES. THE MONIES OF SUCH CHARITABLE
 FUND  SHALL  BE  DEPOSITED AND SECURED IN THE MANNER PROVIDED BY SECTION
 TEN OF THE GENERAL MUNICIPAL LAW. THE MONIES OF SUCH CHARITABLE FUND MAY
 BE INVESTED IN THE MANNER PROVIDED BY  SECTION  ELEVEN  OF  THE  GENERAL
 MUNICIPAL  LAW.    ANY  INTEREST  EARNED OR CAPITAL GAIN REALIZED ON THE
 MONEY SO INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. AT  SUCH
 TIME  AND IN SUCH AMOUNTS AS DETERMINED BY THE BOARD, THE MONIES OF SUCH
 CHARITABLE FUND SHALL BE TRANSFERRED TO THE  SCHOOL  DISTRICT'S  GENERAL
 FUND  FOR  EXPENDITURE  CONSISTENT  WITH  THE CHARITABLE PURPOSES OF THE
 FUND, PROVIDED THAT THE AMOUNT OF TAXES  TO  BE  LEVIED  BY  THE  SCHOOL
 DISTRICT  FOR  ANY SCHOOL YEAR SHALL BE DETERMINED WITHOUT REGARD TO ANY
 SUCH TRANSFER. THE SCHOOL DISTRICT SHALL MAINTAIN AN ACCOUNTING  OF  ALL
 SUCH DEPOSITS, INTEREST OR CAPITAL GAIN, TRANSFERS, AND EXPENDITURES.
   §  5.  Section  2590-h of the education law is amended by adding a new
 subdivision 54 to read as follows:
   54. TO ESTABLISH A CHARITABLE  FUND  TO  RECEIVE  CHARITABLE  MONETARY
 DONATIONS  MADE  TO  SUCH  FUND  FOR USE BY THE CITY SCHOOL DISTRICT FOR
 GENERAL EDUCATIONAL PURPOSES. THE MONIES OF SUCH CHARITABLE  FUND  SHALL
 BE  DEPOSITED  AND  SECURED IN THE MANNER PROVIDED BY SECTION TEN OF THE
 GENERAL MUNICIPAL LAW.  THE  MONIES  OF  SUCH  CHARITABLE  FUND  MAY  BE
 INVESTED IN THE MANNER PROVIDED BY SECTION ELEVEN OF THE GENERAL MUNICI-
 PAL  LAW.  ANY  INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO
 INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. AT SUCH TIME  AND
 IN  SUCH  AMOUNTS  AS  DETERMINED  BY THE CHANCELLOR, THE MONIES OF SUCH
 CHARITABLE FUND SHALL BE  TRANSFERRED  TO  THE  CITY  SCHOOL  DISTRICT'S
 GENERAL  FUND FOR EXPENDITURE CONSISTENT WITH THE CHARITABLE PURPOSES OF
 THE FUND, PROVIDED THAT THE AMOUNT OF TAXES TO BE LEVIED BY THE CITY FOR
 ANY SCHOOL YEAR SHALL BE DETERMINED WITHOUT REGARD TO ANY SUCH TRANSFER.
 THE CITY SCHOOL DISTRICT SHALL MAINTAIN AN ACCOUNTING OF ALL SUCH DEPOS-
 ITS, INTEREST OR CAPITAL GAIN, TRANSFERS, AND EXPENDITURES.
   § 6. The general municipal law is amended by adding two  new  sections
 6-t and 6-u to read as follows:

 S. 7509--A                         79                         A. 9509--A
 
   §  6-T.  CHARITABLE GIFTS RESERVE FUND.  1. THE GOVERNING BOARD OF ANY
 COUNTY OR NEW YORK CITY MAY ESTABLISH A RESERVE FUND TO BE  KNOWN  AS  A
 CHARITABLE  GIFTS  RESERVE  FUND, THE MONEYS OF WHICH ARE TO BE USED FOR
 THE PAYMENT OF HEALTH CARE EXPENSES AND MAY BE USED TO DEFRAY THE  LOCAL
 SOCIAL  SERVICES  DISTRICT'S  YEARLY  NET  SHARE  OF  MEDICAL ASSISTANCE
 EXPENDITURES.
   2. SUCH FUND MAY RECEIVE CHARITABLE CONTRIBUTIONS FROM PROPERTY OWNERS
 OF THE COUNTY OR NEW YORK CITY.
   3. THE MONEYS IN SUCH FUND SHALL  BE  DEPOSITED  AND  SECURED  IN  THE
 MANNER  PROVIDED BY SECTION TEN OF THIS ARTICLE. THE GOVERNING BOARD, OR
 THE CHIEF FISCAL OFFICER OF SUCH  COUNTY,  OR  NEW  YORK  CITY,  IF  THE
 GOVERNING  BOARD  SHALL DELEGATE SUCH DUTY TO HIM OR HER, MAY INVEST THE
 MONEYS IN SUCH FUND IN THE MANNER PROVIDED BY  SECTION  ELEVEN  OF  THIS
 ARTICLE.  ANY  INTEREST  EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO
 DEPOSITED OR INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND.  THE
 SEPARATE  IDENTITY  OF  SUCH FUND SHALL BE MAINTAINED WHETHER ITS ASSETS
 CONSIST OF CASH OR INVESTMENTS OR BOTH.
   4. AT THE END OF THE FISCAL YEAR, THE GOVERNING BOARD OF THE COUNTY OR
 NEW YORK CITY, WITHIN SIXTY DAYS OF THE CLOSE OF THE FISCAL YEAR,  SHALL
 TRANSFER  THE  FUNDS  TO THE GENERAL FUND OR OTHER FUND OF THE MUNICIPAL
 CORPORATION FOR THE PURPOSE OF PAYING HEALTH  CARE  EXPENSES,  INCLUDING
 THE LOCAL SOCIAL SERVICES DISTRICT'S YEARLY NET SHARE OF MEDICAL ASSIST-
 ANCE EXPENDITURES.
   5. THE GOVERNING BOARD SHALL ESTABLISH A PROCEDURE FOR PROPERTY OWNERS
 OF  THE  COUNTY OR NEW YORK CITY TO MAKE CONTRIBUTIONS TO THE CHARITABLE
 GIFTS RESERVE FUND, WHICH SHALL  INCLUDE  THE  PROVISION  OF  A  WRITTEN
 ACKNOWLEDGMENT OF THE GIFT TO THE CONTRIBUTOR.
   6.  NOTHING  IN  THIS  SECTION SHALL RELIEVE THE LOCAL SOCIAL SERVICES
 DISTRICT OF ITS ONGOING OBLIGATION  TO  PAY  THE  YEARLY  NET  SHARE  OF
 MEDICAL  ASSISTANCE EXPENDITURES, NOR RELIEVE A LOCAL DISTRICT OF SOCIAL
 SERVICES OF ITS STATUTORY  AND  REGULATORY  FUNCTIONS  IN  THE  ADMINIS-
 TRATION,  SUPERVISION AND OPERATION OF THE MEDICAL ASSISTANCE PROGRAM IN
 ITS LOCALITY.
   § 6-U. CHARITABLE GIFTS RESERVE FUND. 1. THE GOVERNING  BOARD  OF  ANY
 CITY WITH A POPULATION LESS THAN ONE MILLION, TOWN OR VILLAGE MAY ESTAB-
 LISH A RESERVE FUND TO BE KNOWN AS A CHARITABLE GIFTS RESERVE FUND.
   2. SUCH FUND MAY RECEIVE CHARITABLE CONTRIBUTIONS FROM PROPERTY OWNERS
 OF THE TOWN, VILLAGE OR CITY.
   3.  THE  MONEYS  IN  SUCH  FUND  SHALL BE DEPOSITED AND SECURED IN THE
 MANNER PROVIDED BY SECTION TEN OF THIS ARTICLE. THE GOVERNING BOARD,  OR
 THE CHIEF FISCAL OFFICER OF SUCH TOWN, VILLAGE OR CITY, IF THE GOVERNING
 BOARD  SHALL  DELEGATE SUCH DUTY TO HIM OR HER, MAY INVEST THE MONEYS IN
 SUCH FUND IN THE MANNER PROVIDED BY SECTION ELEVEN OF THIS ARTICLE.  ANY
 INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY  SO  DEPOSITED  OR
 INVESTED  SHALL  ACCRUE  TO  AND  BECOME PART OF SUCH FUND. THE SEPARATE
 IDENTITY OF SUCH FUND SHALL BE MAINTAINED WHETHER ITS ASSETS CONSIST  OF
 CASH OR INVESTMENTS OR BOTH.
   4.  AT  THE  END  OF THE FISCAL YEAR, THE GOVERNING BOARD OF THE TOWN,
 VILLAGE OR CITY, WITHIN SIXTY DAYS OF THE CLOSE OF THE FISCAL YEAR,  MAY
 TRANSFER  THE  FUNDS  TO THE GENERAL FUND OR OTHER FUND OF THE MUNICIPAL
 CORPORATION, SO THAT THE FUNDS MAY BE USED FOR CHARITABLE PURPOSES.
   5. THE GOVERNING BOARD SHALL ESTABLISH A PROCEDURE FOR PROPERTY OWNERS
 OF THE TOWN, VILLAGE OR CITY TO MAKE  CONTRIBUTIONS  TO  THE  CHARITABLE
 GIFTS  RESERVE  FUND,  WHICH  SHALL  INCLUDE  THE PROVISION OF A WRITTEN
 ACKNOWLEDGMENT OF THE GIFT TO THE CONTRIBUTOR.

 S. 7509--A                         80                         A. 9509--A

   § 7. The real property tax law is amended  by  adding  a  new  section
 980-a to read as follows:
   §  980-A.  TAX  CREDITS  FOR  CONTRIBUTIONS TO CERTAIN FUNDS. 1. (A) A
 MUNICIPAL CORPORATION THAT HAS ESTABLISHED A FUND PURSUANT  TO  SUBDIVI-
 SION  FORTY-FOUR  OF  SECTION SIXTEEN HUNDRED FOUR OF THE EDUCATION LAW,
 SUBDIVISION TWELVE-B OF SECTION SEVENTEEN HUNDRED NINE OF THE  EDUCATION
 LAW,  SUBDIVISION  FIFTY-FOUR OF SECTION TWENTY-FIVE HUNDRED NINETY-H OF
 THE EDUCATION LAW, OR SECTION SIX-T OR SIX-U OF  THE  GENERAL  MUNICIPAL
 LAW,  MAY  ADOPT  A  LOCAL  LAW,  OR IN THE CASE OF A SCHOOL DISTRICT, A
 RESOLUTION, AUTHORIZING A TAX CREDIT TO BE  PROVIDED  PURSUANT  TO  THIS
 SECTION  FOR CONTRIBUTIONS TO SUCH FUND. FOR PURPOSES OF THIS SECTION, A
 MUNICIPAL CORPORATION THAT HAS ESTABLISHED SUCH A  FUND  AND  AUTHORIZED
 SUCH A CREDIT SHALL BE REFERRED TO AS A "PARTICIPATING" MUNICIPAL CORPO-
 RATION.
   (B)  ON  AND AFTER DECEMBER FIRST, TWO THOUSAND EIGHTEEN, THE OWNER OR
 OWNERS OF REAL PROPERTY SHALL BE ALLOWED A CREDIT AGAINST THE REAL PROP-
 ERTY TAXES OF A  PARTICIPATING  MUNICIPAL  CORPORATION  THAT  HAVE  BEEN
 IMPOSED  UPON SUCH PROPERTY. THE AMOUNT OF SUCH CREDIT SHALL EQUAL NINE-
 TY-FIVE PERCENT OF THE AMOUNT CONTRIBUTED BY ONE OR MORE OF  THE  OWNERS
 OF  SUCH PROPERTY DURING THE "ASSOCIATED CREDIT YEAR" AS DEFINED IN THIS
 SECTION, TO ANY OR ALL OF THE FUNDS ESTABLISHED BY SUCH MUNICIPAL CORPO-
 RATION, SUBJECT TO THE LIMIT ESTABLISHED PURSUANT TO  PARAGRAPH  (C)  OF
 THIS SUBDIVISION, IF ANY.
   (C) THE PARTICIPATING MUNICIPAL CORPORATION MAY ESTABLISH A LIMIT UPON
 THE  AMOUNT  OF  SUCH  CREDIT TO BE ALLOWED IN ANY GIVEN FISCAL YEAR, IN
 WHICH CASE THE AMOUNT OF SUCH CREDIT  SHALL  NOT  EXCEED  THE  LIMIT  SO
 ESTABLISHED.    ANY  SUCH LIMIT SHALL BE ADOPTED BY LOCAL LAW, OR IN THE
 CASE OF A SCHOOL DISTRICT, BY RESOLUTION, WHICH LOCAL LAW OR  RESOLUTION
 MAY  EITHER  BE THE SAME AS OR SEPARATE FROM THE LOCAL LAW OR RESOLUTION
 THAT INITIALLY AUTHORIZED  THE  CREDIT.  ONCE  SUCH  A  LIMIT  HAS  BEEN
 ADOPTED,  IT  MAY  BE AMENDED OR REPEALED THEREAFTER BY LOCAL LAW, OR IN
 THE CASE OF A SCHOOL DISTRICT, BY RESOLUTION,  PROVIDED  THAT  ANY  SUCH
 AMENDMENT  OR  REPEAL  SHALL  ONLY  APPLY  TO TAXES OF THE PARTICIPATING
 MUNICIPAL CORPORATION FOR FISCAL YEARS COMMENCING AFTER THE ADOPTION  OF
 SUCH  LOCAL  LAW  OR  RESOLUTION.  A COPY OF ANY LOCAL LAW OR RESOLUTION
 ESTABLISHING, AMENDING OR REPEALING SUCH A LIMIT SHALL  BE  PROVIDED  TO
 THE  COLLECTING  OFFICER  WHO  COLLECTS  THE  TAXES OF THE PARTICIPATING
 MUNICIPAL CORPORATION.
   2. FOR PURPOSES OF THIS SECTION, THE "ASSOCIATED CREDIT YEAR" SHALL BE
 THE TWELVE-MONTH PERIOD DURING WHICH THE OWNER OF THE PROPERTY HAS  MADE
 A CONTRIBUTION DESCRIBED IN SUBDIVISION ONE OF THIS SECTION THAT ENDS ON
 THE  LAST  DAY PRESCRIBED BY LAW ON WHICH THE TAXES OF THE PARTICIPATING
 MUNICIPAL CORPORATION MAY BE PAID WITHOUT INTEREST OR PENALTIES, SUBJECT
 TO THE FOLLOWING:
   (A) WHERE SUCH TAXES ARE PAYABLE IN  INSTALLMENTS,  SUCH  TWELVE-MONTH
 PERIOD  SHALL  END  ON THE LAST DAY PRESCRIBED BY LAW ON WHICH THE FIRST
 INSTALLMENT OF SUCH TAXES MAY BE PAID WITHOUT INTEREST OR PENALTIES.
   (B) WHERE A PARTICIPATING  MUNICIPAL  CORPORATION  IS  A  CITY  SCHOOL
 DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, SUCH
 TWELVE-MONTH PERIOD SHALL END ON THE LAST DAY PRESCRIBED BY LAW ON WHICH
 CITY  TAXES MAY BE PAID WITHOUT INTEREST OR PENALTIES, OR IF APPLICABLE,
 ON THE LAST DAY PRESCRIBED BY LAW ON WHICH THE FIRST INSTALLMENT OF SUCH
 TAXES MAY BE PAID WITHOUT INTEREST OR PENALTIES.
   (C) EACH SUCH TWELVE-MONTH PERIOD SHALL BE DETERMINED  WITHOUT  REGARD
 TO  THE  POSSIBILITY  THAT  THE PERIOD PRESCRIBED BY LAW FOR PAYING SUCH
 TAXES WITHOUT INTEREST OR PENALTIES MAY BE EXTENDED DUE TO  A  DELAY  IN

 S. 7509--A                         81                         A. 9509--A
 
 THE  FIRST PUBLICATION OF THE COLLECTING OFFICER'S NOTICE AS PROVIDED BY
 SECTIONS THIRTEEN HUNDRED TWENTY-TWO OR THIRTEEN HUNDRED TWENTY-FOUR  OF
 THIS CHAPTER OR A COMPARABLE LAW, OR DUE TO AN EXECUTIVE ORDER ISSUED IN
 CONNECTION  WITH  A  STATE DISASTER EMERGENCY AS PROVIDED BY SUBDIVISION
 TWO OF SECTION NINE HUNDRED TWENTY-FIVE-A OF THIS CHAPTER.
   3. THE CREDIT AUTHORIZED BY THIS  SECTION  SHALL  BE  ADMINISTERED  AS
 FOLLOWS:
   (A)  THE  ADMINISTRATOR  OF THE ACCOUNT OR ITS DESIGNATED AGENT SHALL,
 UPON RECEIVING A CONTRIBUTION TO AN ACCOUNT SPECIFIED IN SUBDIVISION ONE
 OF THIS SECTION DURING A CREDIT YEAR, FURNISH THE PROPERTY OWNER WITH AN
 ACKNOWLEDGEMENT IN DUPLICATE. SUCH ACKNOWLEDGEMENT SHALL BE PROVIDED  ON
 A  FORM  PRESCRIBED  BY THE COMMISSIONER AND SHALL SPECIFY THE AMOUNT OF
 THE CONTRIBUTION, THE NAME AND  ADDRESS  OF  THE  DONOR,  THE  DATE  THE
 CONTRIBUTION WAS RECEIVED, THE AUTHORIZED SIGNATURE OF THE ADMINISTRATOR
 OR AGENT, AND SUCH OTHER INFORMATION AS THE COMMISSIONER SHALL REQUIRE.
   (B)  AFTER  RECEIVING  SUCH AN ACKNOWLEDGEMENT, THE PROPERTY OWNER MAY
 PRESENT IT TO THE APPROPRIATE COLLECTING OFFICER ON OR BEFORE  THE  LAST
 DAY  PRESCRIBED  BY  LAW  ON WHICH TAXES MAY BE PAID WITHOUT INTEREST OR
 PENALTY, TOGETHER WITH A CREDIT  CLAIM  ON  A  FORM  PRESCRIBED  BY  THE
 COMMISSIONER.    SUCH  CREDIT  CLAIM  FORM SHALL CONTAIN THE NAME OF THE
 PROPERTY OWNER OR OWNERS, THE DATE AND AMOUNT OF THE CONTRIBUTIONS  MADE
 TO  THE  ACCOUNT  DURING  THE ASSOCIATED CREDIT YEAR, THE ADDRESS OF THE
 PROPERTY TO WHICH THE CREDIT CLAIM RELATES, AND SUCH  OTHER  INFORMATION
 AS THE COMMISSIONER SHALL REQUIRE.  NOTWITHSTANDING ANY PROVISION OF LAW
 TO  THE  CONTRARY,  THE COLLECTING OFFICER SHALL THEREUPON BE AUTHORIZED
 AND DIRECTED TO GRANT THE PROPERTY OWNER A TAX CREDIT EQUAL  TO  NINETY-
 FIVE  PERCENT OF THE AMOUNT OF THE CONTRIBUTIONS MADE DURING THE ASSOCI-
 ATED CREDIT YEAR AS SPECIFIED ON THE ACKNOWLEDGEMENT, AND TO REDUCE  THE
 TAX  LIABILITY  ON THE PARCEL ACCORDINGLY, PROVIDED THAT SUCH CREDIT MAY
 NOT EXCEED THE LIMIT ESTABLISHED BY THE PARTICIPATING  MUNICIPAL  CORPO-
 RATION  PURSUANT TO PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, IF
 SUCH A LIMIT HAS BEEN ESTABLISHED. WHERE TAXES ARE PAYABLE  IN  INSTALL-
 MENTS,  IF  THE  CREDIT EXCEEDS THE AMOUNT OF THE FIRST INSTALLMENT, THE
 EXCESS SHALL BE APPLIED TO FUTURE INSTALLMENTS UNTIL EXHAUSTED.
   (C) IF THE PROPERTY OWNER FAILS  TO  PRESENT  THE  ACKNOWLEDGMENT  AND
 CREDIT  CLAIM  FORM  TO THE COLLECTING OFFICER ON OR BEFORE THE LAST DAY
 PRESCRIBED BY LAW ON WHICH TAXES MAY BE PAID WITHOUT INTEREST OR  PENAL-
 TY,  HE OR SHE MAY PRESENT THE SAME TO THE CHIEF FISCAL OFFICER OR CHIEF
 FINANCIAL OFFICER OF THE PARTICIPATING MUNICIPAL CORPORATION,  OR  TO  A
 MEMBER  OF  HIS OR HER STAFF. SUCH OFFICER SHALL THEREUPON BE AUTHORIZED
 AND DIRECTED TO GRANT THE PROPERTY OWNER A  REFUND  OF  SCHOOL  DISTRICT
 TAXES  IN THE AMOUNT OF THE CREDIT, WHICH AMOUNT SHALL BE EQUAL TO NINE-
 TY-FIVE PERCENT OF THE TOTAL CONTRIBUTIONS MADE  DURING  THE  ASSOCIATED
 CREDIT  YEAR,  PROVIDED  THAT  SUCH  REFUND  SHALL NOT EXCEED THE SCHOOL
 DISTRICT TAXES THAT HAVE BEEN PAID ON THE PROPERTY OR THE  LIMIT  ESTAB-
 LISHED  PURSUANT TO PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, IF
 ANY. PROVIDED FURTHER, THAT NO INTEREST SHALL BE PAYABLE ON SUCH  REFUND
 IF  PAID WITHIN FORTY-FIVE DAYS OF THE RECEIPT OF THE ACKNOWLEDGMENT AND
 CREDIT CLAIM FORM. THE OWNER OF THE PROPERTY MAY FILE SUCH REFUND  CLAIM
 WITH  THE  AUTHORIZED  OFFICER  AT ANY TIME DURING THE THREE YEAR PERIOD
 BEGINNING IMMEDIATELY AFTER THE LAST DAY SUCH TAXES WERE PAYABLE WITHOUT
 INTEREST OR PENALTY.
   4. THE AMOUNT OF THE ITEMIZED DEDUCTION  THAT  MAY  BE  CLAIMED  BY  A
 TAXPAYER  UNDER  SECTION SIX HUNDRED FIFTEEN OF THE TAX LAW WITH RESPECT
 TO THE TAXES PAID ON SUCH PROPERTY MAY NOT  EXCEED  THE  AMOUNT  OF  THE
 TAXES  OF  A  PARTICIPATING MUNICIPAL CORPORATION THAT HAVE BEEN IMPOSED

 S. 7509--A                         82                         A. 9509--A
 
 UPON SUCH PROPERTY MINUS THE AMOUNT OF THE CREDIT PROVIDED  PURSUANT  TO
 THIS SECTION.
   §  8.  This act shall take effect immediately; provided, however, that
 the amendments to section 2590-h of the education law  made  by  section
 five  of  this act shall not affect the expiration and reversion of such
 section and shall expire and be deemed repealed therewith; and  provided
 further  that  if  section  2590-h  of  the  education law expires or is
 repealed and is reverted prior  to  the  effective  date  of  this  act,
 section five of this act shall not take effect.
 
                                  PART MM
 
   Section  1.  The tax law is amended by adding a new article 24 to read
 as follows:
                                 ARTICLE 24
                     EMPLOYER COMPENSATION EXPENSE TAX
 SECTION 850. DEFINITIONS.
         851. EMPLOYER ELECTION.
         852. IMPOSITION AND RATE OF TAX.
         853. PASS THROUGH OF TAX.
         854. PAYMENT OF TAX.
         855. EMPLOYEE CREDIT.
         856. DEPOSIT AND DISPOSITION OF REVENUE.
         857. PROCEDURAL PROVISIONS.
   § 850. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
   (A) EMPLOYER. EMPLOYER MEANS AN EMPLOYER THAT IS REQUIRED  BY  SECTION
 SIX  HUNDRED SEVENTY-ONE OF THIS CHAPTER TO DEDUCT AND WITHHOLD TAX FROM
 WAGES.
   (B) ELECTING EMPLOYER. ELECTING EMPLOYER IS AN EMPLOYER THAT HAS  MADE
 THE  ELECTION  PROVIDED  FOR  IN SECTION EIGHT HUNDRED FIFTY-ONE OF THIS
 ARTICLE.
   (C) PAYROLL EXPENSE. PAYROLL EXPENSE MEANS WAGES AND  COMPENSATION  AS
 DEFINED  IN SECTIONS 3121 AND 3231 OF THE INTERNAL REVENUE CODE (WITHOUT
 REGARD TO SECTION 3121(A)(1) AND SECTION 3231(E)(2)(A)(I)), PAID TO  ALL
 COVERED EMPLOYEES.
   (D)  COVERED EMPLOYEE. COVERED EMPLOYEE MEANS AN EMPLOYEE OF AN ELECT-
 ING EMPLOYER WHO IS REQUIRED TO HAVE AMOUNTS WITHHELD UNDER SECTION  SIX
 HUNDRED  SEVENTY-ONE  OF  THIS  CHAPTER  AND  RECEIVES  ANNUAL WAGES AND
 COMPENSATION FROM HIS OR  HER  EMPLOYER  OF  MORE  THAN  FORTY  THOUSAND
 DOLLARS ANNUALLY.
   § 851. EMPLOYER ELECTION. (A) ANY EMPLOYER WHO EMPLOYS COVERED EMPLOY-
 EES  IN THE STATE SHALL BE ALLOWED TO MAKE AN ELECTION TO BE TAXED UNDER
 THIS ARTICLE.
   (B) IN ORDER TO BE EFFECTIVE, THE ELECTION MUST BE MADE BY (1)  UNANI-
 MOUS  CONSENT  OF ALL OWNERS OF THE EMPLOYER AT THE TIME THE ELECTION IS
 MADE IF THE EMPLOYER IS NOT A CORPORATION; OR (2) IF THE EMPLOYER  IS  A
 FOR-PROFIT  OR  NOT-FOR-PROFIT CORPORATION, BY ANY OFFICER OR MANAGER OF
 THE EMPLOYER WHO IS AUTHORIZED UNDER THE LAW  OF  THE  STATE  WHERE  THE
 CORPORATION IS INCORPORATED OR UNDER THE EMPLOYER'S ORGANIZATIONAL DOCU-
 MENTS  TO  MAKE  THE ELECTION AND WHO REPRESENTS TO HAVING SUCH AUTHORI-
 ZATION UNDER PENALTY OF PERJURY; OR (3) IF THE EMPLOYER IS A  TRUST,  BY
 THE  UNANIMOUS  CONSENT  OF  ALL  TRUSTEES;  OR (4) IF THE EMPLOYER IS A
 GOVERNMENTAL ENTITY, BY THE CHIEF EXECUTIVE OFFICER OF SUCH GOVERNMENTAL
 ENTITY.
   (C) THE ELECTION MUST BE MADE BY OCTOBER FIRST OF A CALENDAR YEAR  AND
 WILL  TAKE  EFFECT  FOR  THE IMMEDIATELY SUCCEEDING CALENDAR YEAR. IF AN

 S. 7509--A                         83                         A. 9509--A
 
 ELECTION IS MADE AFTER OCTOBER FIRST OF A CALENDAR YEAR, IT  WILL  FIRST
 TAKE EFFECT IN THE SECOND SUCCEEDING CALENDAR YEAR.
   §  852.  IMPOSITION  AND  RATE  OF TAX. A TAX IS HEREBY IMPOSED ON THE
 PAYROLL EXPENSE PAID BY ELECTING EMPLOYERS TO COVERED EMPLOYEES. FOR TWO
 THOUSAND NINETEEN, THE TAX SHALL BE EQUAL TO ONE AND ONE-HALF PERCENT OF
 THE PAYROLL EXPENSE PAID BY  ELECTING  EMPLOYERS  TO  COVERED  EMPLOYEES
 DURING  THE  CALENDAR QUARTER. FOR TWO THOUSAND TWENTY, THE TAX SHALL BE
 EQUAL TO THREE PERCENT OF THE PAYROLL EXPENSE PAID BY ELECTING EMPLOYERS
 TO COVERED EMPLOYEES DURING THE CALENDAR QUARTER. FOR TWO THOUSAND TWEN-
 TY-ONE AND THEREAFTER, THE TAX SHALL BE EQUAL TO  FIVE  PERCENT  OF  THE
 PAYROLL  EXPENSE  PAID BY ELECTING EMPLOYERS TO COVERED EMPLOYEES DURING
 THE CALENDAR QUARTER. AN ELECTING EMPLOYER SHALL ONLY BE SUBJECT TO  THE
 TAX  IMPOSED  UNDER  THIS  ARTICLE  ON  THE  PAYROLL EXPENSE PAID TO ANY
 COVERED EMPLOYEE DURING THE CALENDAR YEAR IN EXCESS  OF  FORTY  THOUSAND
 DOLLARS.
   §  853.  PASS THROUGH OF TAX. AN EMPLOYER CANNOT DEDUCT FROM THE WAGES
 OR COMPENSATION OF AN EMPLOYEE ANY AMOUNT THAT  REPRESENTS  ALL  OR  ANY
 PORTION OF THE TAX IMPOSED ON THE EMPLOYER UNDER THIS ARTICLE.
   §  854.  PAYMENT  OF  TAX. (A) EMPLOYERS WITH PAYROLL EXPENSE. THE TAX
 IMPOSED ON THE PAYROLL EXPENSE OF ELECTING EMPLOYERS UNDER SECTION EIGHT
 HUNDRED FIFTY-TWO OF THIS ARTICLE MUST BE PAID  AT  THE  SAME  TIME  THE
 ELECTING  EMPLOYER  IS  REQUIRED  TO  REMIT  PAYMENTS  UNDER SECTION SIX
 HUNDRED SEVENTY-FOUR OF THIS CHAPTER; PROVIDED  HOWEVER,  THAT  ELECTING
 EMPLOYERS SUBJECT TO THE PROVISIONS IN SECTION NINE OF THIS CHAPTER MUST
 PAY  THE  TAX ON THE PAYROLL EXPENSE AT THE SAME TIME AS THE WITHHOLDING
 TAX REMITTED UNDER THE ELECTRONIC PAYMENT REPORTING SYSTEM AND THE ELEC-
 TRONIC FUNDS TRANSFER SYSTEM AUTHORIZED BY SECTION NINE OF THIS CHAPTER.
   (B) RESPONSIBLE PERSON LIABILITY. ANY OFFICER, DIRECTOR OR EMPLOYEE OF
 A CORPORATION OR OF A DISSOLVED CORPORATION, ANY EMPLOYEE OF A  PARTNER-
 SHIP,  ANY EMPLOYEE OR MANAGER OF A LIMITED LIABILITY COMPANY, ANY TRUS-
 TEE OF A TRUST, OR ANY EMPLOYEE OF  AN  INDIVIDUAL  PROPRIETORSHIP,  ANY
 PARTNER  OF  A PARTNERSHIP OR ANY MEMBER OF A LIMITED LIABILITY COMPANY,
 WHO AS SUCH OFFICER, DIRECTOR, EMPLOYEE, MANAGER, PARTNER OR  MEMBER  IS
 UNDER A DUTY TO ACT FOR SUCH CORPORATION, PARTNERSHIP, LIMITED LIABILITY
 COMPANY  OR  INDIVIDUAL PROPRIETORSHIP IN COMPLYING WITH ANY REQUIREMENT
 OF THIS ARTICLE, SHALL BE JOINTLY AND SEVERALLY LIABLE WITH THE ELECTING
 EMPLOYER FOR ANY TAX, PENALTY OR INTEREST OWED UNDER THIS ARTICLE.
   § 855. EMPLOYEE CREDIT. A COVERED EMPLOYEE SHALL BE ALLOWED  A  CREDIT
 AGAINST  THE  TAX  IMPOSED  UNDER  ARTICLE  TWENTY-TWO  OF THIS CHAPTER,
 COMPUTED PURSUANT TO THE PROVISIONS OF SUBSECTION (AAAA) OF SECTION  SIX
 HUNDRED SIX OF THIS CHAPTER.
   § 856. DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES, INTEREST, PENAL-
 TIES,  AND  FEES  COLLECTED  OR  RECEIVED BY THE COMMISSIONER UNDER THIS
 ARTICLE SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO THE PROVISIONS OF
 SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER.
   § 857. PROCEDURAL PROVISIONS. (A) GENERAL. ALL PROVISIONS  OF  ARTICLE
 TWENTY-TWO  OF THIS CHAPTER WILL APPLY TO THE PROVISIONS OF THIS ARTICLE
 IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE
 OF ARTICLE TWENTY-TWO OF THIS CHAPTER HAD BEEN INCORPORATED IN FULL INTO
 THIS ARTICLE AND  HAD  BEEN  SPECIFICALLY  ADJUSTED  FOR  AND  EXPRESSLY
 REFERRED  TO  THE TAX IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT
 ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR
 IS  NOT  RELEVANT  TO  THIS  ARTICLE.    NOTWITHSTANDING  THE  PRECEDING
 SENTENCE,  NO  CREDIT  AGAINST TAX IN ARTICLE TWENTY-TWO OF THIS CHAPTER
 CAN BE USED TO OFFSET THE TAX DUE UNDER THIS ARTICLE.

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   (B) NOTWITHSTANDING THE PROVISIONS OF SECTION SIX HUNDRED NINETY-SEVEN
 OF THIS CHAPTER, IF THE COMMISSIONER DETERMINES THAT A PERSON IS  LIABLE
 FOR  ANY  TAX,  PENALTY  OR  INTEREST  UNDER  THIS  ARTICLE  PURSUANT TO
 SUBSECTION (B) OF SECTION EIGHT HUNDRED FIFTY-FOUR OF THIS ARTICLE, UPON
 REQUEST  IN  WRITING  OF SUCH PERSON, THE COMMISSIONER SHALL DISCLOSE IN
 WRITING TO SUCH PERSON (1) THE NAME OF ANY OTHER PERSON THE COMMISSIONER
 HAS DETERMINED TO BE LIABLE FOR SUCH TAX, PENALTY OR INTEREST UNDER THIS
 ARTICLE FOR THE ELECTING EMPLOYER, AND (2) WHETHER THE COMMISSIONER  HAS
 ATTEMPTED  TO  COLLECT  SUCH  TAX,  PENALTY  OR INTEREST FROM SUCH OTHER
 PERSON OR ELECTING EMPLOYER,  THE  GENERAL  NATURE  OF  SUCH  COLLECTION
 ACTIVITIES, AND THE AMOUNT COLLECTED.
   (C)  NOTWITHSTANDING  ANY  OTHER LAW TO THE CONTRARY, THE COMMISSIONER
 MAY REQUIRE THAT ALL FILINGS OF FORMS OR RETURNS UNDER THIS ARTICLE MUST
 BE FILED ELECTRONICALLY AND ALL PAYMENTS OF TAX MUST BE  PAID  ELECTRON-
 ICALLY.    THE  COMMISSIONER  MAY  PRESCRIBE  THE  METHODS FOR QUARTERLY
 FILINGS BY ELECTING EMPLOYERS, INCLUDING BUT NOT LIMITED TO, THE  INCLU-
 SION OF SPECIFIC EMPLOYEE-LEVEL DETAIL.
   §  2. Section 606 of the tax law is amended by adding a new subsection
 (aaaa) to read as follows:
   (AAAA) ARTICLE TWENTY-FOUR EMPLOYEE CREDIT. A COVERED EMPLOYEE  OF  AN
 ELECTING  EMPLOYER SHALL BE ENTITLED TO A CREDIT AGAINST THE TAX IMPOSED
 BY THIS ARTICLE AS PROVIDED IN THIS SUBSECTION.  FOR  PURPOSES  OF  THIS
 SUBSECTION  THE  TERMS  "COVERED EMPLOYEE" AND "ELECTING EMPLOYER" SHALL
 HAVE THE SAME MEANINGS AS UNDER SECTION  EIGHT  HUNDRED  FIFTY  OF  THIS
 CHAPTER.    (1)  FOR TWO THOUSAND NINETEEN, THE CREDIT SHALL BE EQUAL TO
 THE PRODUCT OF (I) THE COVERED  EMPLOYEE'S  WAGES  AND  COMPENSATION  IN
 EXCESS  OF  FORTY THOUSAND DOLLARS RECEIVED DURING THE TAX YEAR FROM THE
 COVERED EMPLOYER THAT ARE SUBJECT TO TAX UNDER THIS ARTICLE AND (II) ONE
 AND ONE-HALF PERCENT AND (III) THE RESULT OF ONE MINUS A  FRACTION,  THE
 NUMERATOR  OF  WHICH SHALL BE THE TAX IMPOSED ON THE COVERED EMPLOYEE AS
 DETERMINED PURSUANT TO SECTION SIX HUNDRED ONE OF  THIS  ARTICLE  BEFORE
 THE  APPLICATION  OF  ANY  CREDITS  FOR  THE APPLICABLE TAX YEAR AND THE
 DENOMINATOR OF WHICH SHALL BE THE COVERED EMPLOYEE'S TAXABLE  INCOME  AS
 DETERMINED PURSUANT TO THIS ARTICLE FOR THE APPLICABLE TAX YEAR. (2) FOR
 TWO THOUSAND TWENTY, THE CREDIT SHALL BE EQUAL TO THE PRODUCT OF (I) THE
 COVERED  EMPLOYEE'S  WAGES  AND COMPENSATION IN EXCESS OF FORTY THOUSAND
 DOLLARS RECEIVED DURING THE TAX YEAR FROM THE COVERED EMPLOYER THAT  ARE
 SUBJECT  TO  TAX UNDER THIS ARTICLE AND (II) THREE PERCENT AND (III) THE
 RESULT OF ONE MINUS A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE  TAX
 IMPOSED  ON  THE  COVERED EMPLOYEE AS DETERMINED PURSUANT TO SECTION SIX
 HUNDRED ONE OF THIS ARTICLE BEFORE THE APPLICATION OF  ANY  CREDITS  FOR
 THE  APPLICABLE  TAX  YEAR  AND  THE  DENOMINATOR  OF WHICH SHALL BE THE
 COVERED EMPLOYEE'S TAXABLE INCOME AS DETERMINED PURSUANT TO THIS ARTICLE
 FOR THE APPLICABLE TAX YEAR. (3) FOR TWO THOUSAND TWENTY-ONE AND  THERE-
 AFTER,  THE  CREDIT  SHALL  BE  EQUAL  TO THE PRODUCT OF (I) THE COVERED
 EMPLOYEE'S WAGES AND COMPENSATION IN EXCESS OF  FORTY  THOUSAND  DOLLARS
 RECEIVED  DURING THE TAX YEAR FROM THE COVERED EMPLOYER THAT ARE SUBJECT
 TO TAX UNDER THIS ARTICLE AND (II) FIVE PERCENT AND (III) THE RESULT  OF
 ONE MINUS A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE TAX IMPOSED ON
 THE  COVERED  EMPLOYEE AS DETERMINED PURSUANT TO SECTION SIX HUNDRED ONE
 OF THIS ARTICLE BEFORE THE APPLICATION OF ANY CREDITS FOR THE APPLICABLE
 TAX YEAR AND THE DENOMINATOR OF WHICH SHALL BE  THE  COVERED  EMPLOYEE'S
 TAXABLE INCOME AS DETERMINED PURSUANT TO THIS ARTICLE FOR THE APPLICABLE
 TAX  YEAR.   IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION
 FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE
 EXCESS  ALLOWED  FOR A TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING

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 YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH  YEAR
 OR YEARS.
   §  3.  Subdivision  1  of  section 171-a of the tax law, as amended by
 section 15 of part AAA of chapter 59 of the laws of 2017, is amended  to
 read as follows:
   1.  All  taxes,  interest, penalties and fees collected or received by
 the commissioner or the commissioner's duly authorized agent under arti-
 cles nine (except section one hundred eighty-two-a thereof and except as
 otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
 twelve-A  (except  as  otherwise provided in section two hundred eighty-
 four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
 section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
 (except as otherwise provided in section four hundred eighty-two  there-
 of),  twenty-B, twenty-one, twenty-two, TWENTY-FOUR, twenty-six, twenty-
 eight (except as otherwise provided in section  eleven  hundred  two  or
 eleven hundred three thereof), twenty-eight-A, twenty-nine-B, thirty-one
 (except  as  otherwise  provided  in section fourteen hundred twenty-one
 thereof), thirty-three and  thirty-three-A  of  this  chapter  shall  be
 deposited  daily  in  one  account  with such responsible banks, banking
 houses or trust companies as may be designated by  the  comptroller,  to
 the credit of the comptroller. Such an account may be established in one
 or  more  of such depositories. Such deposits shall be kept separate and
 apart from all other money in the possession  of  the  comptroller.  The
 comptroller  shall require adequate security from all such depositories.
 Of the total revenue collected or received under such articles  of  this
 chapter,  the  comptroller  shall retain in the comptroller's hands such
 amount as the commissioner may determine to be necessary for refunds  or
 reimbursements  under  such articles of this chapter out of which amount
 the comptroller shall pay any refunds or reimbursements to which taxpay-
 ers shall be entitled under the provisions  of  such  articles  of  this
 chapter. The commissioner and the comptroller shall maintain a system of
 accounts  showing  the amount of revenue collected or received from each
 of the taxes imposed by such articles. The comptroller, after  reserving
 the  amount  to  pay such refunds or reimbursements, shall, on or before
 the tenth day of each month, pay into the state treasury to  the  credit
 of  the general fund all revenue deposited under this section during the
 preceding calendar month and remaining to the  comptroller's  credit  on
 the  last  day  of such preceding month, (i) except that the comptroller
 shall pay to the state department of  social  services  that  amount  of
 overpayments  of  tax  imposed by article twenty-two of this chapter and
 the interest on such amount which is certified to the comptroller by the
 commissioner as the amount  to  be  credited  against  past-due  support
 pursuant to subdivision six of section one hundred seventy-one-c of this
 article,  (ii) and except that the comptroller shall pay to the New York
 state higher education services corporation and the state university  of
 New  York or the city university of New York respectively that amount of
 overpayments of tax imposed by article twenty-two of  this  chapter  and
 the interest on such amount which is certified to the comptroller by the
 commissioner as the amount to be credited against the amount of defaults
 in  repayment  of guaranteed student loans and state university loans or
 city university loans  pursuant  to  subdivision  five  of  section  one
 hundred  seventy-one-d and subdivision six of section one hundred seven-
 ty-one-e of this article, (iii) and except further that, notwithstanding
 any law, the comptroller shall credit to the revenue arrearage  account,
 pursuant  to  section ninety-one-a of the state finance law, that amount
 of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-

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 ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest
 thereon, which is certified to the comptroller by  the  commissioner  as
 the  amount  to  be credited against a past-due legally enforceable debt
 owed  to  a state agency pursuant to paragraph (a) of subdivision six of
 section one hundred seventy-one-f of this article, provided, however, he
 shall credit to  the  special  offset  fiduciary  account,  pursuant  to
 section  ninety-one-c of the state finance law, any such amount credita-
 ble as a liability as set forth in paragraph (b) of subdivision  six  of
 section  one  hundred  seventy-one-f  of  this  article, (iv) and except
 further that the comptroller shall pay to the  city  of  New  York  that
 amount  of  overpayment  of tax imposed by article nine, nine-A, twenty-
 two, thirty, thirty-A, thirty-B or thirty-three of this chapter and  any
 interest thereon that is certified to the comptroller by the commission-
 er  as  the  amount  to be credited against city of New York tax warrant
 judgment debt pursuant to section  one  hundred  seventy-one-l  of  this
 article,  (v)  and  except  further  that the comptroller shall pay to a
 non-obligated spouse that amount of overpayment of tax imposed by  arti-
 cle twenty-two of this chapter and the interest on such amount which has
 been credited pursuant to section one hundred seventy-one-c, one hundred
 seventy-one-d,  one  hundred seventy-one-e, one hundred seventy-one-f or
 one hundred seventy-one-l of this article and which is certified to  the
 comptroller  by  the  commissioner  as the amount due such non-obligated
 spouse pursuant to paragraph  six  of  subsection  (b)  of  section  six
 hundred fifty-one of this chapter; and (vi) the comptroller shall deduct
 a  like  amount which the comptroller shall pay into the treasury to the
 credit of the general fund from  amounts  subsequently  payable  to  the
 department  of  social  services,  the state university of New York, the
 city university of New York, or the  higher  education  services  corpo-
 ration,  or  the  revenue  arrearage account or special offset fiduciary
 account pursuant to section ninety-one-a or ninety-one-c  of  the  state
 finance  law, as the case may be, whichever had been credited the amount
 originally withheld from such overpayment, and  (vii)  with  respect  to
 amounts  originally  withheld  from such overpayment pursuant to section
 one hundred seventy-one-l of this article and paid to the  city  of  New
 York,  the  comptroller shall collect a like amount from the city of New
 York.
   § 4. Subdivision 1 of section 171-a of the  tax  law,  as  amended  by
 section  16 of part AAA of chapter 59 of the laws of 2017, is amended to
 read as follows:
   1. All taxes, interest, penalties and fees collected  or  received  by
 the commissioner or the commissioner's duly authorized agent under arti-
 cles nine (except section one hundred eighty-two-a thereof and except as
 otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
 twelve-A (except as otherwise provided in section  two  hundred  eighty-
 four-d  thereof),  thirteen, thirteen-A (except as otherwise provided in
 section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
 (except  as otherwise provided in section four hundred eighty-two there-
 of),  twenty-one,  twenty-two,  TWENTY-FOUR,  twenty-six,   twenty-eight
 (except  as  otherwise  provided in section eleven hundred two or eleven
 hundred  three  thereof),  twenty-eight-A,   twenty-nine-B,   thirty-one
 (except  as  otherwise  provided  in section fourteen hundred twenty-one
 thereof), thirty-three and  thirty-three-A  of  this  chapter  shall  be
 deposited  daily  in  one  account  with such responsible banks, banking
 houses or trust companies as may be designated by  the  comptroller,  to
 the credit of the comptroller. Such an account may be established in one
 or  more  of such depositories. Such deposits shall be kept separate and

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 apart from all other money in the possession  of  the  comptroller.  The
 comptroller  shall require adequate security from all such depositories.
 Of the total revenue collected or received under such articles  of  this
 chapter,  the  comptroller  shall retain in the comptroller's hands such
 amount as the commissioner may determine to be necessary for refunds  or
 reimbursements  under  such articles of this chapter out of which amount
 the comptroller shall pay any refunds or reimbursements to which taxpay-
 ers shall be entitled under the provisions  of  such  articles  of  this
 chapter. The commissioner and the comptroller shall maintain a system of
 accounts  showing  the amount of revenue collected or received from each
 of the taxes imposed by such articles. The comptroller, after  reserving
 the  amount  to  pay such refunds or reimbursements, shall, on or before
 the tenth day of each month, pay into the state treasury to  the  credit
 of  the general fund all revenue deposited under this section during the
 preceding calendar month and remaining to the  comptroller's  credit  on
 the  last  day  of such preceding month, (i) except that the comptroller
 shall pay to the state department of  social  services  that  amount  of
 overpayments  of  tax  imposed by article twenty-two of this chapter and
 the interest on such amount which is certified to the comptroller by the
 commissioner as the amount  to  be  credited  against  past-due  support
 pursuant to subdivision six of section one hundred seventy-one-c of this
 article,  (ii) and except that the comptroller shall pay to the New York
 state higher education services corporation and the state university  of
 New  York or the city university of New York respectively that amount of
 overpayments of tax imposed by article twenty-two of  this  chapter  and
 the interest on such amount which is certified to the comptroller by the
 commissioner as the amount to be credited against the amount of defaults
 in  repayment  of guaranteed student loans and state university loans or
 city university loans  pursuant  to  subdivision  five  of  section  one
 hundred  seventy-one-d and subdivision six of section one hundred seven-
 ty-one-e of this article, (iii) and except further that, notwithstanding
 any law, the comptroller shall credit to the revenue arrearage  account,
 pursuant  to  section ninety-one-a of the state finance law, that amount
 of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-
 ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest
 thereon, which is certified to the comptroller by  the  commissioner  as
 the  amount  to  be credited against a past-due legally enforceable debt
 owed to a state agency pursuant to paragraph (a) of subdivision  six  of
 section one hundred seventy-one-f of this article, provided, however, he
 shall  credit  to  the  special  offset  fiduciary  account, pursuant to
 section ninety-one-c of the state finance law, any such amount  credita-
 ble  as  a liability as set forth in paragraph (b) of subdivision six of
 section one hundred seventy-one-f  of  this  article,  (iv)  and  except
 further  that  the  comptroller  shall  pay to the city of New York that
 amount of overpayment of tax imposed by article  nine,  nine-A,  twenty-
 two,  thirty, thirty-A, thirty-B or thirty-three of this chapter and any
 interest thereon that is certified to the comptroller by the commission-
 er as the amount to be credited against city of  New  York  tax  warrant
 judgment  debt  pursuant  to  section  one hundred seventy-one-l of this
 article, (v) and except further that the  comptroller  shall  pay  to  a
 non-obligated  spouse that amount of overpayment of tax imposed by arti-
 cle twenty-two of this chapter and the interest on such amount which has
 been credited pursuant to section one hundred seventy-one-c, one hundred
 seventy-one-d, one hundred seventy-one-e, one hundred  seventy-one-f  or
 one  hundred seventy-one-l of this article and which is certified to the
 comptroller by the commissioner as the  amount  due  such  non-obligated

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 spouse  pursuant  to  paragraph  six  of  subsection  (b) of section six
 hundred fifty-one of this chapter; and (vi) the comptroller shall deduct
 a like amount which the comptroller shall pay into the treasury  to  the
 credit  of  the  general  fund  from amounts subsequently payable to the
 department of social services, the state university  of  New  York,  the
 city  university  of  New  York, or the higher education services corpo-
 ration, or the revenue arrearage account  or  special  offset  fiduciary
 account  pursuant  to  section ninety-one-a or ninety-one-c of the state
 finance law, as the case may be, whichever had been credited the  amount
 originally  withheld  from  such  overpayment, and (vii) with respect to
 amounts originally withheld from such overpayment  pursuant  to  section
 one  hundred  seventy-one-l  of this article and paid to the city of New
 York, the comptroller shall collect a like amount from the city  of  New
 York.
   §  5.  Subdivisions 2, 3 and paragraph (a) of subdivision 5 of section
 92-z of the state finance law, subdivision 2 as amended by section 30 of
 part T of chapter 57 of the laws of 2007, and subdivision  3  and  para-
 graph  (a)  of  subdivision 5 as added by section 1 of part I of chapter
 383 of the laws of 2001, are amended to read as follows:
   2. Such fund shall consist  of  [twenty-five]  (A)  FIFTY  percent  of
 receipts  from the imposition of personal income taxes pursuant to arti-
 cle twenty-two of the tax law, less such amounts as the commissioner  of
 taxation  and finance may determine to be necessary for refunds, AND (B)
 FIFTY PERCENT OF RECEIPTS FROM THE IMPOSITION OF  EMPLOYER  COMPENSATION
 EXPENSE  TAXES PURSUANT TO ARTICLE TWENTY-FOUR OF THE TAX LAW, LESS SUCH
 AMOUNTS AS THE COMMISSIONER OF TAXATION AND FINANCE MAY DETERMINE TO  BE
 NECESSARY FOR REFUNDS.
   3. (A) Beginning on the first day of each month, the comptroller shall
 deposit  all  of  the receipts collected pursuant to section six hundred
 seventy-one of the tax law in the revenue bond tax fund until the amount
 of monthly receipts anticipated to be deposited pursuant to the  certif-
 icate  required in paragraph (b) of subdivision five of this section are
 met. On or before the twelfth day of each  month,  the  commissioner  of
 taxation  and finance shall certify to the state comptroller the amounts
 specified in PARAGRAPH (A) OF subdivision two of this  section  relating
 to  the  preceding  month  and, in addition, no later than March thirty-
 first of each fiscal year the commissioner of taxation and finance shall
 certify such amounts relating to the last month of such fiscal year. The
 amounts so certified shall be deposited by the state comptroller in  the
 revenue bond tax fund.
   (B)  BEGINNING  ON  THE FIRST DAY OF EACH MONTH, THE COMPTROLLER SHALL
 DEPOSIT ALL OF THE RECEIPTS COLLECTED PURSUANT TO SECTION EIGHT  HUNDRED
 FIFTY-FOUR  OF THE TAX LAW IN THE REVENUE BOND TAX FUND UNTIL THE AMOUNT
 OF MONTHLY RECEIPTS ANTICIPATED TO BE DEPOSITED PURSUANT TO THE  CERTIF-
 ICATE  REQUIRED IN PARAGRAPH (B) OF SUBDIVISION FIVE OF THIS SECTION ARE
 MET. ON OR BEFORE THE TWELFTH DAY OF EACH  MONTH,  THE  COMMISSIONER  OF
 TAXATION  AND FINANCE SHALL CERTIFY TO THE STATE COMPTROLLER THE AMOUNTS
 SPECIFIED IN PARAGRAPH (B) OF SUBDIVISION TWO OF THIS  SECTION  RELATING
 TO  THE  PRECEDING  MONTH  AND, IN ADDITION, NO LATER THAN MARCH THIRTY-
 FIRST OF EACH FISCAL YEAR THE COMMISSIONER OF TAXATION AND FINANCE SHALL
 CERTIFY SUCH AMOUNTS RELATING TO THE LAST MONTH OF SUCH FISCAL YEAR. THE
 AMOUNTS SO CERTIFIED SHALL BE DEPOSITED BY THE STATE COMPTROLLER IN  THE
 REVENUE BOND TAX FUND.
   (a)  The  state  comptroller  shall from time to time, but in no event
 later than the fifteenth day of each month (other than the last month of
 the fiscal year) and no later than the  thirty-first  day  of  the  last

 S. 7509--A                         89                         A. 9509--A
 
 month  of each fiscal year, pay over and distribute to the credit of the
 general fund of the state treasury all moneys in the  revenue  bond  tax
 fund, if any, in excess of the aggregate amount required to be set aside
 for  the  payment of cash requirements pursuant to paragraph (b) of this
 subdivision, provided that an appropriation has been  made  to  pay  all
 amounts  specified  in  any certificate or certificates delivered by the
 director of the budget pursuant to paragraph (b) of this subdivision  as
 being  required  by  each  authorized  issuer as such term is defined in
 section sixty-eight-a of this chapter for the payment of  cash  require-
 ments  of  such  issuers  for such fiscal year. Subject to the rights of
 holders of debt of the state, in no event shall  the  state  comptroller
 pay  over  and  distribute any moneys on deposit in the revenue bond tax
 fund to any person other than an  authorized  issuer  pursuant  to  such
 certificate  or  certificates  (i) unless and until the aggregate of all
 cash requirements certified to the state comptroller as required by such
 authorized issuers to be set aside pursuant to  paragraph  (b)  of  this
 subdivision  for  such  fiscal year shall have been appropriated to such
 authorized issuers in accordance with  the  schedule  specified  in  the
 certificate  or certificates filed by the director of the budget or (ii)
 if, after  having  been  so  certified  and  appropriated,  any  payment
 required  to  be  made pursuant to paragraph (b) of this subdivision has
 not been made to the authorized issuers which was required to have  been
 made  pursuant  to  such certificate or certificates; provided, however,
 that no person, including such authorized  issuers  or  the  holders  of
 revenue  bonds,  shall have any lien on moneys on deposit in the revenue
 bond tax fund. Any agreement entered into  pursuant  to  section  sixty-
 eight-c  of  this  chapter  related  to  any  payment authorized by this
 section shall be executory only to the extent of such revenues available
 to the state in such fund. Notwithstanding subdivisions two and three of
 this section, in the event the aggregate of all cash requirements certi-
 fied to the state comptroller as required by such authorized issuers  to
 be  set  aside  pursuant  to  paragraph  (b) of this subdivision for the
 fiscal year beginning on April first shall not have been appropriated to
 such authorized issuers in accordance with the schedule specified in the
 certificate or certificates filed by the director of the budget or, (ii)
 if, having been so certified and appropriated, any payment  required  to
 be  made pursuant to paragraph (b) of this subdivision has not been made
 pursuant to such certificate or  certificates,  all  receipts  collected
 pursuant  to  section six hundred seventy-one of the tax law AND SECTION
 EIGHT HUNDRED FIFTY-FOUR OF THE TAX LAW shall be deposited in the reven-
 ue bond tax fund until the greater of [twenty-five] FORTY percent of the
 AGGREGATE OF THE receipts from the imposition of (A) the personal income
 tax imposed by article twenty-two of the tax law AND  (B)  THE  EMPLOYER
 COMPENSATION  EXPENSE  TAX IMPOSED BY ARTICLE TWENTY-FOUR OF THE TAX LAW
 for the fiscal year beginning on April first and  as  specified  in  the
 certificate or certificates filed by the director of the budget pursuant
 to  this  paragraph  or [six] A TOTAL OF TWELVE billion dollars has been
 deposited in the  revenue  bond  tax  fund.  Notwithstanding  any  other
 provision  of law, if the state has appropriated and paid to the author-
 ized issuers the amounts necessary for the authorized  issuers  to  meet
 their  requirements  for the current fiscal year pursuant to the certif-
 icate or certificates submitted by the director of the  budget  pursuant
 to  paragraph  (b)  of this section, the state comptroller shall, on the
 last day of each fiscal year, pay to the general fund of the  state  all
 sums  remaining  in  the  revenue bond tax fund on such date except such
 amounts as the director of the budget may certify are needed to meet the

 S. 7509--A                         90                         A. 9509--A
 
 cash requirements of authorized issuers  during  the  subsequent  fiscal
 year.
   §  6. Subdivision 5 of section 68-c of the state finance law, as added
 by section 2 of part I of chapter 383 of the laws of 2001, is amended to
 read as follows:
   5. Nothing contained in this article shall be deemed to  restrict  the
 right  of the state to amend, repeal, modify or otherwise alter statutes
 imposing or relating to the taxes imposed pursuant to article twenty-two
 AND ARTICLE TWENTY-FOUR of the tax law. The authorized issuers shall not
 include within any resolution, contract or agreement with holders of the
 revenue bonds issued under this article  any  provision  which  provides
 that  a  default occurs as a result of the state exercising its right to
 amend, repeal, modify or otherwise alter the taxes imposed  pursuant  to
 article twenty-two AND ARTICLE TWENTY-FOUR of the tax law.
   §  7.  This act shall take effect immediately; provided, however, that
 the amendments to subdivision 1 of section 171-a of the tax law made  by
 section three of this act shall not affect the expiration of such subdi-
 vision and shall expire therewith, when upon such date the provisions of
 section four of this act shall take effect.
   § 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 MM of this act shall be
 as specifically set forth in the last section of such Parts.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7509--B
 
                             I N  S E N A T E
 
                             January 18, 2018
                                ___________
 
 A  BUDGET  BILL,  submitted by the Governor pursuant to article seven of
   the Constitution -- read twice and ordered printed, and  when  printed
   to  be  committed to the Committee on Finance -- committee discharged,
   bill amended, ordered reprinted as amended  and  recommitted  to  said
   committee  -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee

 AN ACT intentionally omitted (Part A); intentionally omitted  (Part  B);
   intentionally  omitted  (Part  C);  intentionally omitted (Part D); to
   amend the general municipal law, the education law, the state  finance
   law,  the real property tax law and the tax law, in relation to making
   technical corrections to various statutes  impacting  property  taxes;
   and  to repeal subsection (bbb) of section 606 of the tax law, section
   3-d of the general municipal law and section 2023-b of  the  education
   law,  relating  thereto  (Part  E); intentionally omitted (Part F); to
   amend the real property tax law, in relation to  assessment  ceilings;
   and  to amend chapter 475 of the laws of 2013, amending the real prop-
   erty tax law relating to assessment ceilings for local public  utility
   mass real property, in relation to the effectiveness thereof (Part G);
   to  amend  the  tax law and the administrative code of the city of New
   York, in relation to extending the statute of limitations for  assess-
   ing tax on amended returns (Part H); to amend the tax law, in relation
   to  providing  for  employee  wage  reporting  consistency between the
   department of taxation and finance and the department of  labor  (Part
   I);  to  amend  the tax law, in relation to sales and compensating use
   taxes imposed on food and beverages sold by  restaurants  and  similar
   establishments (Part J); to amend the tax law, in relation to allowing
   sharing  with  the comptroller information regarding unwarranted fixed
   and final debt (Part K); intentionally omitted (Part L); intentionally
   omitted (Part M); intentionally omitted (Part N); intentionally  omit-
   ted  (Part  O);  to amend the tax law, in relation to the empire state
   child credit (Part P); to amend the tax law, in relation to  extending
   the  hire  a  veteran  credit for an additional two years (Part Q); to
   amend the labor law and the tax law, in relation to enhancing the  New
   York  youth  jobs  program  (Part  R); intentionally omitted (Part S);
   intentionally omitted (Part T); intentionally omitted (Part U); inten-
   tionally omitted (Part V); to  amend  the  tax  law,  in  relation  to
   exempting  from  sales  and use tax certain veterinary drugs and medi-
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD12674-06-8

 S. 7509--B                          2
 
   cines and removing the refund/credit therefor (Part W); to  amend  the
   tax  law, in relation to providing relief from sales tax liability for
   certain partners of a limited partnership and  members  of  a  limited
   liability  company  (Part X); intentionally omitted (Part Y); to amend
   part A of chapter 61 of the laws of 2017, amending the tax law  relat-
   ing  to  the imposition of sales and compensating use taxes in certain
   counties, in relation to extending the revenue distribution provisions
   for the additional rates of sales and  use  tax  of  Genesee,  Monroe,
   Onondaga  and  Orange  counties  (Part Z); intentionally omitted (Part
   AA); intentionally omitted (Part BB); intentionally omitted (Part CC);
   intentionally omitted (Part DD);  to  amend  the  racing,  pari-mutuel
   wagering  and  breeding  law,  in  relation to adjusting the franchise
   payment, and authorizing  night  races  under  certain  circumstances;
   creating  an equine drug testing advisory committee; and providing for
   the repeal of certain provisions upon  the  expiration  thereof  (Part
   EE);  to  amend  the racing, pari-mutuel wagering and breeding law, in
   relation to providing funds for the aftercare of retired horses  (Part
   FF);  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 to amend chapter 346 of the laws of 1990 amending the
   racing,  pari-mutuel wagering and breeding law and other laws relating
   to simulcasting and the imposition of certain taxes,  in  relation  to
   extending  certain  provisions thereof; and to amend the racing, pari-
   mutuel wagering and breeding law, in  relation  to  extending  certain
   provisions  thereof  (Part  GG);  intentionally  omitted (Part HH); to
   amend the tax law, in relation to commissions paid to the operator  of
   a  video  lottery  facility;  to repeal certain provisions of such law
   relating thereto; providing for the repeal of certain provisions  upon
   expiration thereof (Part II); to amend the tax law and the administra-
   tive  code  of the city of New York, in relation to addressing changes
   made to the internal revenue code by Public Law 115-97 (Part  JJ);  to
   amend the tax law and the administrative code of the city of New York,
   in  relation  to  federal  gross income and federal deductions allowed
   pursuant to the internal revenue code (Part KK); intentionally omitted
   (Part LL); intentionally omitted (Part MM); to amend the real property
   tax law, in relation to establishing the senior capped  real  property
   school  tax  rate; and to amend the tax law, in relation to increasing
   the property tax relief credit (Part NN); to amend chapter 97  of  the
   laws of 2011, amending the general municipal law and the education law
   relating to establishing limits upon school district and local govern-
   ment  tax  levies,  in  relation  to eliminating the expiration of and
   making permanent certain provisions thereof (Part OO);  to  amend  the
   tax  law,  in  relation  to  tax on the furnishing of utility services
   (Part PP); to amend the public service law,  in  relation  to  certain
   costs  and  expenses  (Part  QQ); to amend the tax law, in relation to
   increasing the  exemption  for  pensions  and  annuities  for  certain
   persons  (Part  RR);  to  amend  the  legislative  law, in relation to
   requiring assent of two-thirds of the members for any bill that enacts
   or increases tax revenues (Part SS); to amend the state  finance  law,
   in  relation to establishing a spending cap and increasing the maximum
   capacity of the rainy day fund (Part TT); to amend  the  tax  law,  in
   relation  to  establishing  a  credit for customers of certain private

 S. 7509--B                          3
 
   water utilities, in relation to requiring a feasibility study relating
   to the Jericho Water District; and providing for the  repeal  of  such
   provisions upon the expiration thereof (Part UU); to amend the tax law
   and  the  administrative  code of the city of New York, in relation to
   business income base and certain small business taxpayers  (Part  VV);
   to  amend the real property tax law, in relation to the STAR exemption
   for property owned by small businesses (Part WW);  to  amend  the  tax
   law,  in  relation  to minimum wage reimbursement credit (Part XX); to
   amend  the  tax  law,  in  relation  to  extending  the  minimum  wage
   reimbursement credit to seasonal employees (Part YY); to amend the tax
   law, in relation to tax credits for qualified pass-through manufactur-
   ers  (Part  ZZ);  to  amend  the real property tax law, in relation to
   providing an exemption for security cameras installed on real property
   owned by a public utility  (Part  AAA);  to  amend  the  tax  law,  in
   relation  to providing an exemption for tangible personal property and
   services sold by a cemetery; in relation to  establishing  an  amnesty
   program for cemetery corporations (Part BBB); to amend the tax law and
   the  parks,  recreation  and historic preservation law, in relation to
   the tax credit for rehabilitation of historic properties  (Part  CCC);
   to  amend  the  tax law, in relation to establishing a personal income
   tax credit to preceptor clinicians who provide  preceptor  instruction
   (Part DDD); to amend the tax law, in relation to a television writers'
   and  directors'  fees and salaries credit (Part EEE); to amend the tax
   law and the administrative code of the city of New York,  in  relation
   to  making  technical corrections thereto; to repeal subsection (i) of
   section 612 of the tax law relating to the elimination of the personal
   income tax deduction for percentage depletion; and to  repeal  certain
   provisions  of  the  tax law relating thereto (Part FFF); to amend the
   tax law, in relation to the donation of a human organ (Part  GGG);  to
   amend  the  tax  law,  in  relation  to  the  musical  and  theatrical
   production credit; and to amend part HH of chapter 59 of the  laws  of
   2014  amending  the  tax  law  relating  to  a  musical and theatrical
   production credit, in relation to extending the effectiveness of  such
   provisions  (Part HHH); to amend the education law and the tax law, in
   relation to  establishing  the  college  debt  freedom  account  pilot
   program  (Part III); to amend the tax law, in relation to establishing
   a reduction of certain taxpayer's federal adjusted gross  income,  for
   state personal income tax purposes, for student loan interest payments
   made  by the taxpayer (Part JJJ); to amend the tax law, in relation to
   establishing a residential fuel oil storage tank credit and to  direct
   the  office  of  temporary  and  disability  assistance to establish a
   program to assist eligible households in the replacement  of  residen-
   tial  fuel  oil storage tanks (Part KKK); to amend the tax law and the
   insurance law, in relation to credits for premiums paid for  long-term
   care  insurance policies (Part LLL); to amend the tax law, in relation
   to providing insurance corporations with a tax credit for  investments
   made  in  rural  business growth funds; and to amend the state finance
   law, in relation to establishing the New York  agriculture  and  rural
   jobs  fund  (Part MMM); to amend the tax law, in relation to exempting
   school buses and certain equipment from  sales  and  compensating  use
   tax;  and  to amend the education law, in relation to the extension of
   certain transportation contracts (Part NNN); to amend the tax law  and
   the education law, in relation to enacting the "education affordabili-
   ty  act"  (Part  OOO);  to  amend the racing, pari-mutuel wagering and
   breeding law, in relation to the definition  and  licensing  fees  for
   dealer-controlled  electronic table games (Part PPP); to amend the tax

 S. 7509--B                          4
 
   law, in relation to the percentage  of  free  play  allowance  credits
   (Part QQQ); to amend the racing, pari-mutuel wagering and breeding law
   and  the  penal law, in relation to allowing certain interactive poker
   games  (Part  RRR); to amend the general municipal law, in relation to
   participation in games of bingo by minors (Part SSS); to amend the tax
   law, in relation to the disposition of vender fees for  the  operation
   of  video  lottery  gaming at certain race tracks (Part TTT); to amend
   the racing, pari-mutuel wagering and breeding law, in relation to  the
   disposition of net revenues of regional off-track betting corporations
   to participating counties (Part UUU); to amend the racing, pari-mutuel
   wagering  and  breeding  law,  in  relation to creating the racing fan
   advisory council (Part VVV); to amend the racing, pari-mutuel wagering
   and breeding law, in relation to establishing the advisory council  on
   retired  race horses, within the New York state gaming commission, and
   providing for its powers and duties (Part WWW); to amend  the  racing,
   pari-mutuel  wagering  and  breeding law, in relation to regulation of
   sports betting (Part XXX); to amend the racing,  pari-mutuel  wagering
   and  breeding  law, in relation to funds held in trust by a franchised
   corporation for a recognized horsemen's organization  to  be  used  as
   collateral  to  secure  workers' compensation insurance coverage (Part
   YYY); to amend the tax law, in  relation  to  exempting  coin-operated
   tire inflation equipment from sales and use taxes (Part ZZZ); to amend
   the real property tax law, in relation to extending certain provisions
   exempting  lands  devoted  to  agricultural  or horticultural use from
   taxation (Part AAAA); to amend the education law and the tax  law,  in
   relation  to  expanding  the  New  York  state  college choice tuition
   savings program to include costs of elementary and secondary education
   (Part BBBB); to amend the tax law, in relation to  the  imposition  of
   tax  on  combative  sport matches or exhibitions (Part CCCC); to amend
   the tax law, in relation to gifts for the New York state general  fund
   (Part DDDD); to amend the tax law and the economic development law, in
   relation  to  the  creation  of  the empire state digital gaming media
   production credit; and providing for the  repeal  of  such  provisions
   upon  expiration  thereof (Part EEEE); to amend the civil practice law
   and rules, in relation to enacting  the  "local  government  jobs  and
   revenue protection act of 2018" (Part FFFF); and to amend the tax law,
   in  relation  to the disposition of a portion of sales taxes collected
   for hotel occupancy in cities having a population of  one  million  or
   more (Part GGGG)
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act enacts into law major  components  of  legislation
 which are necessary to implement the state fiscal plan for the 2018-2019
 state  fiscal  year.  Each  component  is wholly contained within a Part
 identified as Parts A through GGGG. The effective date for each  partic-
 ular  provision  contained  within  such  Part  is set forth in the last
 section of such Part.  Any provision in any section contained  within  a
 Part,  including the effective date of the Part, which makes a reference
 to a section "of this act", when used in connection with that particular
 component, shall be deemed  to  mean  and  refer  to  the  corresponding
 section of the Part in which it is found. Section three of this act sets
 forth the general effective date of this act.
                                  PART A

 S. 7509--B                          5
 
                           Intentionally Omitted
 
                                  PART B
 
                           Intentionally Omitted
 
                                  PART C

                           Intentionally Omitted
 
                                  PART D
 
                           Intentionally Omitted
 
                                  PART E
 
   Section 1. Subsection (bbb) of section 606 of the tax law is REPEALED.
   § 1-a. Section 3-d of the general municipal law is REPEALED.
   § 1-b. Section 2023-b of the education law is REPEALED.
   §  2. The general municipal law is amended by adding a new section 3-d
 to read as follows:
   § 3-D. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT.  1.  UPON  THE
 ADOPTION  OF  THE BUDGET OF A LOCAL GOVERNMENT UNIT, THE CHIEF EXECUTIVE
 OFFICER OR BUDGET OFFICER OF SUCH LOCAL GOVERNMENT UNIT SHALL CERTIFY TO
 THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE  THAT
 THE  BUDGET  SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT PRESCRIBED IN
 SECTION THREE-C OF THIS ARTICLE AND, IF THE GOVERNING BODY OF THE  LOCAL
 GOVERNMENT  UNIT  DID ENACT A LOCAL LAW OR APPROVE A RESOLUTION TO OVER-
 RIDE THE TAX LEVY LIMIT, THAT SUCH LOCAL LAW OR  RESOLUTION  WAS  SUBSE-
 QUENTLY  REPEALED. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND MANNER
 PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSION-
 ER OF TAXATION AND FINANCE.
   2. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, IF  SUCH  A  CERTIF-
 ICATION  HAS  BEEN  MADE AND THE ACTUAL TAX LEVY OF THE LOCAL GOVERNMENT
 UNIT EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT  SHALL  BE
 PLACED  IN  RESERVE AND USED IN THE MANNER PRESCRIBED BY SUBDIVISION SIX
 OF SECTION THREE-C OF THIS ARTICLE, EVEN IF A TAX LEVY IN EXCESS OF  THE
 TAX  LEVY  LIMIT HAD BEEN AUTHORIZED FOR THE APPLICABLE FISCAL YEAR BY A
 DULY ADOPTED LOCAL LAW OR RESOLUTION.
   3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,  EVERY  LOCAL
 GOVERNMENT  UNIT  SHALL  REPORT BOTH ITS PROPOSED BUDGET AND ITS ADOPTED
 BUDGET TO THE OFFICE OF THE STATE COMPTROLLER AT THE  TIME  AND  IN  THE
 MANNER  AS  HE OR SHE MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET HAS BEEN
 OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDIVISION.
   § 3. The education law is amended by adding a new  section  2023-b  to
 read as follows:
   §  2023-B.  CERTIFICATION  OF COMPLIANCE WITH TAX LEVY LIMIT. 1.  UPON
 THE ADOPTION OF THE BUDGET OF AN ELIGIBLE  SCHOOL  DISTRICT,  THE  CHIEF
 EXECUTIVE  OFFICER  OF  SUCH  SCHOOL DISTRICT SHALL CERTIFY TO THE STATE
 COMPTROLLER, THE COMMISSIONER OF TAXATION AND FINANCE  AND  THE  COMMIS-
 SIONER  THAT  THE  BUDGET  SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT
 PRESCRIBED BY SECTION TWO THOUSAND TWENTY-THREE-A OF THIS  PART.    SUCH
 CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE
 COMPTROLLER  IN  CONSULTATION  WITH  THE  COMMISSIONER  OF  TAXATION AND
 FINANCE AND THE COMMISSIONER.

 S. 7509--B                          6
 
   2. IF SUCH A CERTIFICATION HAS BEEN MADE AND THE ACTUAL  TAX  LEVY  OF
 THE  SCHOOL  DISTRICT  EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS
 AMOUNT SHALL BE PLACED IN RESERVE AND USED IN THE MANNER  PRESCRIBED  BY
 SUBDIVISION  FIVE  OF  SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART,
 EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN DULY AUTHOR-
 IZED FOR THE APPLICABLE FISCAL YEAR BY THE SCHOOL DISTRICT VOTERS.
   3.  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY SCHOOL
 DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF SECTION TWO THOUSAND TWEN-
 TY-THREE-A OF THIS PART SHALL REPORT BOTH ITS PROPOSED  BUDGET  AND  ITS
 ADOPTED  BUDGET  TO  THE OFFICE OF THE STATE COMPTROLLER AND THE COMMIS-
 SIONER AT THE TIME AND IN THE MANNER AS THEY MAY PRESCRIBE,  WHETHER  OR
 NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDI-
 VISION.
   §  4.  Subdivision  3  of  section 97-rrr of the state finance law, as
 amended by section 1 of part F of chapter 59 of the  laws  of  2015,  is
 amended to read as follows:
   3.  The  monies in such fund shall be appropriated for school property
 tax exemptions granted pursuant to the real property tax law and payable
 pursuant to section thirty-six hundred nine-e of the education law[, and
 for payments to the city of New York pursuant to section fifty-four-f of
 this chapter].
   § 5. Section 925-b of the real property tax law, as amended by chapter
 161 of the laws of 2006, is amended to read as follows:
   § 925-b. Extension; certain persons sixty-five years of age  or  over.
 Notwithstanding  any contrary provision of this chapter, or any general,
 special or local law, code or charter, the governing body of a municipal
 corporation other than a county may, by resolution adopted prior to  the
 levy  of any taxes on real property located within such municipal corpo-
 ration, authorize an extension of no more than five  business  days  for
 the payment of taxes without interest or penalty to any resident of such
 municipal corporation who has received an exemption pursuant to subdivi-
 sion four of section four hundred twenty-five or four hundred sixty-sev-
 en  of this chapter, OR A CREDIT PURSUANT TO SUBSECTION (EEE) OF SECTION
 SIX HUNDRED SIX OF THE TAX LAW, related to a principal residence located
 within such municipal corporation. If such an extension is granted,  and
 any  taxes are not paid by the final date so provided, those taxes shall
 be subject to the same interest and penalties that would have applied if
 no extension had been granted.
   § 6. Paragraph (d) of subdivision 1 of section 928-a of the real prop-
 erty tax law is relettered paragraph (f) and two new paragraphs (d)  and
 (e) are added to read as follows:
   (D)  IF  THE  TAXES  OF  A  CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE
 COLLECTED BY A COUNTY OFFICIAL, THE COUNTY SHALL HAVE THE SOLE AUTHORITY
 TO ESTABLISH A PARTIAL PAYMENT PROGRAM PURSUANT  TO  THIS  SECTION  WITH
 RESPECT TO THE TAXES SO COLLECTED.
   (E)  IF  THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE NOT
 COLLECTED BY A COUNTY OFFICIAL, BUT ITS TAX BILLS ARE  PREPARED  BY  THE
 COUNTY,  OR  ITS  TAX  COLLECTION ACCOUNTING SOFTWARE IS PROVIDED BY THE
 COUNTY, THEN BEFORE THE CITY,  TOWN,  VILLAGE  OR  SCHOOL  DISTRICT  MAY
 IMPLEMENT  A  PARTIAL  PAYMENT PROGRAM PURSUANT TO THIS SECTION, IT MUST
 OBTAIN WRITTEN APPROVAL OF THE CHIEF EXECUTIVE OFFICER OF THE COUNTY  OR
 THE COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES.
   §  7.  Subparagraph  (B) of paragraph 7 of subsection (eee) of section
 606 of the tax law, as amended by section 1 of part G of chapter  59  of
 the laws of 2017, is amended to read as follows:

 S. 7509--B                          7
 
   (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  may  be disclosed to assessors
 [and], county directors of real property tax services, AND MUNICIPAL TAX
 COLLECTING OFFICERS. In addition, where an agreement is in place between
 the  commissioner  and  the head of the tax department of another state,
 such information may be disclosed to such official or his or her  desig-
 nees. Such information shall be considered confidential and shall not be
 subject to further disclosure pursuant to the freedom of information law
 or otherwise.
   § 7-a. Paragraph (g) of subdivision 2 of section 425 of the real prop-
 erty tax law, as added by section 1 of part B of chapter 389 of the laws
 of 1997 and 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:
   (g)  Computation  and  certification  by commissioner. It shall be the
 responsibility of the commissioner to compute the exempt amount for each
 assessing unit in each county in the  manner  provided  herein,  and  to
 certify the same to the assessor of each assessing unit and to the coun-
 ty  director  of real property tax services of each county. Such certif-
 ication shall be  made  at  least  twenty  days  before  the  last  date
 prescribed  by  law  for  the  filing  of the tentative assessment roll.
 PROVIDED, HOWEVER, THAT WHERE SCHOOL TAXES ARE LEVIED ON  A  PRIOR  YEAR
 ASSESSMENT  ROLL, OR ON A FINAL ASSESSMENT ROLL THAT WAS FILED MORE THAN
 ONE YEAR AFTER THE TENTATIVE ROLL WAS FILED, SUCH CERTIFICATION SHALL BE
 MADE NO LATER THAN FIFTEEN DAYS AFTER THE PUBLICATION OF THE DATA NEEDED
 TO COMPUTE THE BASE FIGURE FOR THE ENHANCED STAR EXEMPTION  PURSUANT  TO
 CLAUSE  (A)  OF  SUBPARAGRAPH (VI) OF PARAGRAPH (B) OF THIS SUBDIVISION,
 AND PROVIDED FURTHER, THAT  UPON  RECEIPT  OF  SUCH  CERTIFICATION,  THE
 ASSESSOR  SHALL  THEREUPON  BE  AUTHORIZED  AND  DIRECTED TO CORRECT THE
 ASSESSMENT ROLL TO REFLECT THE EXEMPT AMOUNT SO CERTIFIED, OR, IF ANOTH-
 ER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT  THAT
 PERSON TO MAKE THE APPROPRIATE CORRECTIONS.
   §  8. Paragraph 6 of subsection (eee) of section 606 of the tax law is
 amended by adding a new subparagraph (A) to read as follows:
   (A) A MARRIED COUPLE  MAY  NOT  RECEIVE  A  CREDIT  PURSUANT  TO  THIS
 SUBSECTION  ON  MORE  THAN  ONE RESIDENCE DURING ANY GIVEN TAXABLE YEAR,
 UNLESS LIVING APART DUE TO LEGAL SEPARATION. NOR MAY  A  MARRIED  COUPLE
 RECEIVE  A  CREDIT  PURSUANT  TO  THIS SUBSECTION ON ONE RESIDENCE WHILE
 RECEIVING AN EXEMPTION PURSUANT TO SECTION FOUR HUNDRED  TWENTY-FIVE  OF
 THE  REAL PROPERTY TAX LAW ON ANOTHER RESIDENCE, UNLESS LIVING APART DUE
 TO LEGAL SEPARATION.
   § 9. This act shall take effect immediately; provided,  however,  that
 section  3-d  of  the  general municipal law, as added by section two of
 this act, shall expire and be deemed repealed on the same  date  and  in
 the  same  manner  as  section  1 of part A of chapter 97 of the laws of
 2011, expires and is deemed repealed, and provided that  section  2023-b
 of  the  education  law,  as  added  by section three of this act, shall
 expire and be deemed repealed on the same date and in the same manner as
 section 2 of part A of chapter 97 of the laws of 2011,  expires  and  is
 deemed repealed, and provided further that the amendments to paragraph 6
 of  subsection (eee) of section 606 of the tax law made by section eight
 of this act shall take effect immediately and  shall  apply  to  taxable
 years beginning on or after January 1, 2016.
   REPEAL  NOTE:  Section  606(bbb)  of  the  Tax Law, section 3-d of the
 General Municipal Law and section 2023-b of the  Education  Law  collec-
 tively  constituted  the  enabling legislation for the tax freeze credit

 S. 7509--B                          8
 
 program.  By the terms of those statutes, the tax freeze credit was only
 applicable to taxable  years  2014,  2015  and  2016.  Therefore,  these
 provisions   no  longer  serve  a  purpose,  except  for  the  reporting
 provisions,  which  facilitate  the administration of the tax levy limit
 program and are being preserved in a reenacted section 3-d of the Gener-
 al Municipal Law and section 2023-b of the Education Law.
 
                                  PART F
 
                           Intentionally Omitted
 
                                  PART G
 
   Section 1. Section 4 of chapter 475 of the laws of 2013, amending  the
 real  property  tax law relating to assessment ceilings for local public
 utility mass real property, is amended to read as follows:
   § 4. This act shall take effect on the first of January of the  second
 calendar  year  commencing  after  this  act shall have become a law and
 shall apply to assessment rolls with taxable status dates  on  or  after
 such  date;  provided, however, that this act shall expire and be deemed
 repealed [four] EIGHT years after such  effective  date;  and  provided,
 further,  that  no assessment of local public utility mass real property
 appearing on the municipal assessment roll with a  taxable  status  date
 occurring  in the first calendar year after this act shall have become a
 law shall be less than ninety percent  or  more  than  one  hundred  ten
 percent  of  the  assessment  of  the same property on the date this act
 shall have become a law.
   § 2. Subdivision 3 of section 499-kkkk of the real property  tax  law,
 as  added  by  chapter  475  of  the laws of 2013, is amended to read as
 follows:
   3. (A) For assessment rolls with taxable status dates in each  of  the
 three  calendar  years  including  and  following the year in which this
 section shall take effect, the commissioner shall establish  no  assess-
 ment  ceiling  that is less than ninety percent or more than one hundred
 ten percent of the assessment of such local  public  utility  mass  real
 property  appearing  on  the  municipal  assessment  roll with a taxable
 status date occurring in the second preceding calendar  year  from  when
 this  section shall take effect, except that the commissioner may estab-
 lish assessment ceilings below the ninety percent level or above the one
 hundred ten percent level to take into account any change  in  level  of
 assessment  and/or  to take into account any additions or retirements to
 public utility mass real property or litigation affecting the  value  or
 taxable  status of the local public utility mass real property initiated
 prior to the effective date of this section.
   (B) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN  THE  YEARS  TWO
 THOUSAND  EIGHTEEN,  TWO  THOUSAND NINETEEN AND TWO THOUSAND TWENTY, THE
 COMMISSIONER SHALL ESTABLISH NO ASSESSMENT CEILING  THAT  IS  BELOW  THE
 LOWER LIMIT OR ABOVE THE UPPER LIMIT SPECIFIED IN THIS PARAGRAPH, EXCEPT
 THAT THE COMMISSIONER MAY ESTABLISH ASSESSMENT CEILINGS BELOW SUCH LOWER
 LIMIT OR ABOVE SUCH UPPER LIMIT TO TAKE INTO ACCOUNT ANY CHANGE IN LEVEL
 OF  ASSESSMENT  AND/OR TO TAKE INTO ACCOUNT ANY ADDITIONS OR RETIREMENTS
 TO PUBLIC UTILITY MASS REAL PROPERTY OR LITIGATION AFFECTING  THE  VALUE
 OR  TAXABLE STATUS OF THE LOCAL PUBLIC UTILITY MASS REAL PROPERTY INITI-
 ATED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION.
   (I) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS  DATES  IN  TWO  THOUSAND
 EIGHTEEN,  THE  ASSESSMENT  CEILING  SHALL NOT BE LESS THAN SEVENTY-FIVE

 S. 7509--B                          9

 PERCENT OR MORE THAN ONE HUNDRED TWENTY-FIVE PERCENT OF  THE  ASSESSMENT
 OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI-
 PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO
 THOUSAND THIRTEEN.
   (II)  FOR  ASSESSMENT  ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND
 NINETEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN FIFTY PERCENT OR
 MORE THAN ONE HUNDRED FIFTY PERCENT OF  THE  ASSESSMENT  OF  SUCH  LOCAL
 PUBLIC  UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICIPAL ASSESSMENT
 ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND THIR-
 TEEN.
   (III) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN  TWO  THOUSAND
 TWENTY,  THE  ASSESSMENT  CEILING  SHALL  NOT  BE  LESS THAN TWENTY-FIVE
 PERCENT OR MORE THAN ONE HUNDRED SEVENTY-FIVE PERCENT OF THE  ASSESSMENT
 OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI-
 PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO
 THOUSAND THIRTEEN.
   §  3.  This act shall take effect immediately, provided, however, that
 the amendments to subdivision three of  section  499-kkkk  of  the  real
 property  tax  law  made by section two of this act shall not affect the
 repeal of such section and shall be deemed to be repealed therewith.
 
                                  PART H
 
   Section 1. Subsection (c) of section 683 of the tax law is amended  by
 adding a new paragraph 12 to read as follows:
   (12) AMENDED RETURNS.  EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE
 OF  THIS  SUBSECTION,  OR  AS OTHERWISE PROVIDED IN THIS SECTION WHERE A
 LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED  RETURN,
 AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF
 THE  AMENDED  RETURN),  INCLUDING  RECOVERY OF A PREVIOUSLY PAID REFUND,
 ATTRIBUTABLE TO A CHANGE OR CORRECTION ON  THE  AMENDED  RETURN  FROM  A
 PRIOR  RETURN MAY BE MADE AT ANY TIME WITHIN ONE YEAR AFTER SUCH AMENDED
 RETURN IS FILED.
   § 2. Subsection (c) of section 1083 of  the  tax  law  is  amended  by
 adding a new paragraph 12 to read as follows:
   (12) AMENDED RETURNS.  EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE
 OF  THIS  SUBSECTION,  OR  AS OTHERWISE PROVIDED IN THIS SECTION WHERE A
 LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED  RETURN,
 AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF
 THE  AMENDED  RETURN),  INCLUDING  RECOVERY OF A PREVIOUSLY PAID REFUND,
 ATTRIBUTABLE TO A CHANGE OR CORRECTION ON  THE  AMENDED  RETURN  FROM  A
 PRIOR  RETURN MAY BE MADE AT ANY TIME WITHIN ONE YEAR AFTER SUCH AMENDED
 RETURN IS FILED.
   § 3. Subdivision (c) of section 11-1783 of the administrative code  of
 the  city  of New York is amended by adding a new paragraph 9 to read as
 follows:
   (9) AMENDED RETURNS.  EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH  THREE
 OF  THIS  SUBDIVISION,  OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A
 LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED  RETURN,
 AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF
 THE  AMENDED  RETURN),  INCLUDING  RECOVERY OF A PREVIOUSLY PAID REFUND,
 ATTRIBUTABLE TO A CHANGE OR CORRECTION ON  THE  AMENDED  RETURN  FROM  A
 PRIOR  RETURN MAY BE MADE AT ANY TIME WITHIN ONE YEAR AFTER SUCH AMENDED
 RETURN IS FILED.
   § 4. This act shall take effect immediately and shall apply to amended
 returns filed on or after the effective date of this act.

 S. 7509--B                         10
 
                                  PART I
 
   Section  1.  Paragraph  1 of subdivision (d) of section 658 of the tax
 law, as amended by chapter 166 of the laws of 1991, is amended  to  read
 as follows:
   (1) The commissioner of taxation and finance may prescribe regulations
 and  instructions  requiring returns of information to be made and filed
 on or before February twenty-eighth of each year as to  the  payment  or
 crediting in any calendar year of amounts of six hundred dollars or more
 to  any taxpayer under this article. Such returns may be required of any
 person, including lessees or mortgagors of real  or  personal  property,
 fiduciaries, employers, and all officers and employees of this state, or
 of  any  municipal  corporation  or political subdivision of this state,
 having the control, receipt, custody, disposal or payment  of  interest,
 rents,  salaries,  wages,  premiums, annuities, compensations, remunera-
 tions, emoluments or other  fixed  or  determinable  gains,  profits  or
 income,  except interest coupons payable to bearer. Information required
 to be furnished pursuant to paragraph four of subsection (a) of  section
 six  hundred  seventy-four  on a quarterly combined withholding and wage
 reporting return covering [the last] EACH calendar quarter of each  year
 and relating to tax withheld on wages paid by an employer to an employee
 for [the full] EACH calendar [year] QUARTER, shall constitute the return
 of  information  required  to be made under this section with respect to
 such wages.
   § 2. Subparagraph (A) of paragraph 4 of subsection (a) of section  674
 of the tax law, as amended by section 1 of subpart E of part VI of chap-
 ter 57 of the laws of 2009, is amended to read as follows:
   (A)  All  employers  described  in  paragraph one of subsection (a) of
 section six hundred seventy-one of  this  part,  including  those  whose
 wages paid are not sufficient to require the withholding of tax from the
 wages  of  any of their employees, all employers required to provide the
 wage reporting information for the employees  described  in  subdivision
 one  of  section  one  hundred  seventy-one-a  of  this chapter, and all
 employers  liable  for  unemployment  insurance  contributions  or   for
 payments  in  lieu of such contributions pursuant to article eighteen of
 the labor law, shall file a quarterly combined withholding, wage report-
 ing and unemployment insurance return detailing the  preceding  calendar
 quarter's  withholding  tax  transactions, such quarter's wage reporting
 information, SUCH QUARTER'S WITHHOLDING RECONCILIATION INFORMATION, such
 quarter's unemployment insurance contributions, and such  other  related
 information  as  the commissioner of taxation and finance or the commis-
 sioner of labor, as applicable, may prescribe. [In addition, the  return
 covering the last calendar quarter of each year shall also include with-
 holding reconciliation information for such calendar year.] Such returns
 shall  be  filed  no  later than the last day of the month following the
 last day of each calendar quarter.
   § 3. Paragraph 3 of subsection (v) of section 685 of the tax  law,  as
 amended  by  chapter  477  of  the  laws  of 1998, is amended to read as
 follows:
   (3) Failure to  provide  complete  and  correct  employee  withholding
 reconciliation  information.  In the case of a failure by an employer to
 provide complete and correct [annual] QUARTERLY withholding  information
 relating  to  individual  employees on a quarterly combined withholding,
 wage reporting and unemployment insurance  return  covering  [the  last]
 EACH calendar quarter of a year, such employer shall, unless it is shown
 that  such  failure  is  due  to reasonable cause and not due to willful

 S. 7509--B                         11
 
 neglect, pay a penalty equal to the product of fifty dollars  multiplied
 by  the  number  of employees for whom such information is incomplete or
 incorrect; provided, however, that  if  the  number  of  such  employees
 cannot  be  determined  from  the  quarterly  combined withholding, wage
 reporting  and  unemployment  insurance  return,  the  commissioner  may
 utilize  any information in the commissioner's possession in making such
 determination. The total amount of the penalty imposed pursuant to  this
 paragraph on an employer for any such failure for [the last] EACH calen-
 dar quarter of a year shall not exceed ten thousand dollars.
   §  4. This act shall take effect immediately and shall apply to calen-
 dar quarters beginning on or after January 1, 2019.
 
                                  PART J
 
   Section 1. Paragraph (i) of subdivision (d) of section 1105 of the tax
 law, as amended by chapter 405 of the laws of 1971 and subparagraph 3 as
 amended by section 1 of part DD of chapter 407 of the laws of  1999,  is
 amended to read as follows:
   (i)  The  receipts  from  every  sale, OTHER THAN SALES FOR RESALE, of
 beer, wine or other alcoholic  beverages  or  any  other  drink  of  any
 nature,  or  from  every  sale, OTHER THAN SALES FOR RESALE, of food and
 drink of any nature or of food alone, when sold in  or  by  restaurants,
 taverns or other establishments in this state, or by caterers, including
 in  the  amount  of  such  receipts any cover, minimum, entertainment or
 other charge made to patrons or customers (except those  receipts  taxed
 pursuant to subdivision (f) of this section):
   (1) in all instances where the sale is for consumption on the premises
 where sold;
   (2)  in  those instances where the vendor or any person whose services
 are arranged for by the vendor, after the delivery of the food or  drink
 by  or  on  behalf of the vendor for consumption off the premises of the
 vendor, serves or assists in serving, cooks,  heats  or  provides  other
 services with respect to the food or drink; and
   (3)  in  those  instances  where  the  sale  is made through a vending
 machine that is activated by use of coin, currency, credit card or debit
 card (except the sale of drinks in a heated state made  through  such  a
 vending  machine)  or is for consumption off the premises of the vendor,
 except where food (other than sandwiches) or drink or both are (A)  sold
 in  an  unheated state and, (B) are of a type commonly sold for consump-
 tion off the premises and in the same form and condition, quantities and
 packaging, in establishments which are  food  stores  other  than  those
 principally engaged in selling foods prepared and ready to be eaten.
   §  2. This act shall take effect June 1, 2018 and shall apply to sales
 made on and after such date.
 
                                  PART K
 
   Section 1. The tax law is amended by adding a  new  section  171-z  to
 read as follows:
   §  171-Z. INFORMATION SHARING WITH THE COMPTROLLER REGARDING UNCLAIMED
 FUNDS. 1. NOTWITHSTANDING ANY OTHER LAW, THE COMMISSIONER IS  AUTHORIZED
 TO  RELEASE  TO  THE  COMPTROLLER  INFORMATION REGARDING FIXED AND FINAL
 UNWARRANTED DEBTS OF TAXPAYERS  FOR  PURPOSES  OF  COLLECTING  UNCLAIMED
 FUNDS  FROM THE COMPTROLLER TO SATISFY FIXED AND FINAL UNWARRANTED DEBTS
 OWED BY TAXPAYERS. FOR PURPOSES OF THIS SECTION, THE  TERM  "UNWARRANTED
 DEBT"  SHALL MEAN PAST-DUE TAX LIABILITIES, INCLUDING UNPAID TAX, INTER-

 S. 7509--B                         12
 
 EST AND PENALTY, THAT THE COMMISSIONER IS REQUIRED BY LAW TO COLLECT AND
 THAT HAVE BECOME FIXED AND FINAL SUCH THAT THE TAXPAYER  NO  LONGER  HAS
 ANY  RIGHT  TO  ADMINISTRATIVE  OR JUDICIAL REVIEW AND A WARRANT HAS NOT
 BEEN  FILED;  AND  THE TERM "TAXPAYER" SHALL MEAN ANY INDIVIDUAL, CORPO-
 RATION, PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP OR COMPANY,  PARTNER,
 MEMBER,  MANAGER, SOLE PROPRIETORSHIP, ESTATE, TRUST, FIDUCIARY OR ENTI-
 TY, WHO OR WHICH HAS BEEN IDENTIFIED AS OWING TAXES TO THE  STATE.  THIS
 SECTION  SHALL  NOT BE DEEMED TO ABROGATE OR LIMIT IN ANY WAY THE POWERS
 AND AUTHORITY OF THE COMPTROLLER TO SET OFF DEBTS OWED  THE  STATE  FROM
 UNCLAIMED FUNDS, UNDER THE CONSTITUTION OF THE STATE OR ANY OTHER LAW.
   2.  THE  COMPTROLLER SHALL KEEP ALL INFORMATION HE OR SHE OBTAINS FROM
 THE COMMISSIONER CONFIDENTIAL, AND ANY EMPLOYEE, AGENT OR REPRESENTATIVE
 OF THE COMPTROLLER IS PROHIBITED FROM DISCLOSING ANY  TAXPAYER  INFORMA-
 TION  RECEIVED  UNDER THIS SECTION TO ANYONE OTHER THAN THE COMMISSIONER
 OR STAFF OF THE DEPARTMENT OR STAFF  OF  THE  DEPARTMENT  OF  AUDIT  AND
 CONTROL FOR THE PURPOSES DESCRIBED IN THIS SECTION.
   § 2. This act shall take effect immediately.
 
                                  PART L
 
                           Intentionally Omitted
 
                                  PART M
 
                           Intentionally Omitted
 
                                  PART N
 
                           Intentionally Omitted
 
                                  PART O
 
                           Intentionally Omitted
 
                                  PART P
 
   Section 1. Paragraph (1) of subsection (c-1) of section 606 of the tax
 law,  as  amended  by section 1 of part L1 of chapter 109 of the laws of
 2006, is amended to read as follows:
   (1) A resident taxpayer shall be allowed a credit as  provided  herein
 equal to the greater of one hundred dollars times the number of qualify-
 ing  children  of the taxpayer or the applicable percentage of the child
 tax credit allowed the taxpayer under section twenty-four of the  inter-
 nal  revenue  code  for the same taxable year for each qualifying child.
 Provided, however, in the case of  a  taxpayer  whose  federal  adjusted
 gross  income  exceeds  the  applicable  threshold  amount  set forth by
 section 24(b)(2) of the Internal Revenue Code, the credit shall only  be
 equal  to  the applicable percentage of the child tax credit allowed the
 taxpayer under section 24 of the Internal Revenue Code for each qualify-
 ing child. For the purposes of this subsection, a qualifying child shall
 be a child who meets the definition of  qualified  child  under  section
 24(c)  of  the  internal revenue code and is at least four years of age.
 The applicable percentage shall be thirty-three percent.   FOR  PURPOSES
 OF  THIS SUBSECTION, ANY REFERENCE TO SECTION 24 OF THE INTERNAL REVENUE
 CODE SHALL BE A REFERENCE TO SUCH  SECTION  AS  IT  EXISTED  IMMEDIATELY
 PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97.

 S. 7509--B                         13
 
   § 2. This act shall take effect immediately and shall apply to taxable
 years commencing on or after January 1, 2018.
 
                                  PART Q
 
   Section  1.  Paragraphs (a) and (b) of subdivision 29 of section 210-B
 of the tax law, as amended by section 1 of part I of chapter 60  of  the
 laws of 2016, are amended to read as follows:
   (a) Allowance of credit. For taxable years beginning on or after Janu-
 ary  first,  two thousand fifteen and before January first, two thousand
 [nineteen] TWENTY-ONE, a taxpayer shall  be  allowed  a  credit,  to  be
 computed  as  provided  in  this subdivision, against the tax imposed by
 this article, for hiring and employing, for not less than one  year  and
 for not less than thirty-five hours each week, a qualified veteran with-
 in  the  state.   The taxpayer may claim the credit in the year in which
 the qualified veteran completes one year of employment by the  taxpayer.
 If  the  taxpayer  claims the credit allowed under this subdivision, the
 taxpayer may not use the hiring of a qualified veteran that is the basis
 for this credit in the basis of any  other  credit  allowed  under  this
 article.
   (b) Qualified veteran. A qualified veteran is an individual:
   (1)  who  served  on  active duty in the United States army, navy, air
 force, marine corps, coast guard or the reserves thereof, or who  served
 in  active military service of the United States as a member of the army
 national guard, air national guard, New York guard  or  New  York  naval
 militia;  who  was  released  from  active  duty by general or honorable
 discharge after September eleventh, two thousand one;
   (2) who commences employment by the qualified  taxpayer  on  or  after
 January  first,  two  thousand  fourteen,  and before January first, two
 thousand [eighteen] TWENTY; and
   (3) who certifies by signed affidavit, under penalty of perjury,  that
 he or she has not been employed for thirty-five or more hours during any
 week  in  the  one hundred eighty day period immediately prior to his or
 her employment by the taxpayer.
   § 2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the  tax
 law,  as  amended  by  section  2 of part I of chapter 60 of the laws of
 2016, are amended to read as follows:
   (1) Allowance of credit. For taxable years beginning on or after Janu-
 ary first, two thousand fifteen and before January first,  two  thousand
 [nineteen]  TWENTY-ONE,  a  taxpayer  shall  be  allowed a credit, to be
 computed as provided in this subsection, against the tax imposed by this
 article, for hiring and employing, for not less than one  year  and  for
 not  less  than  thirty-five hours each week, a qualified veteran within
 the state.  The taxpayer may claim the credit in the year in  which  the
 qualified  veteran  completes one year of employment by the taxpayer. If
 the taxpayer claims  the  credit  allowed  under  this  subsection,  the
 taxpayer may not use the hiring of a qualified veteran that is the basis
 for  this  credit  in  the  basis of any other credit allowed under this
 article.
   (2) Qualified veteran. A qualified veteran is an individual:
   (A) who served on active duty in the United  States  army,  navy,  air
 force,  marine corps, coast guard or the reserves thereof, or who served
 in active military service of the United States as a member of the  army
 national  guard,  air  national  guard, New York guard or New York naval
 militia; who was released from  active  duty  by  general  or  honorable
 discharge after September eleventh, two thousand one;

 S. 7509--B                         14
 
   (B)  who  commences  employment  by the qualified taxpayer on or after
 January first, two thousand fourteen,  and  before  January  first,  two
 thousand [eighteen] TWENTY; and
   (C)  who certifies by signed affidavit, under penalty of perjury, that
 he or she has not been employed for thirty-five or more hours during any
 week in the one hundred eighty day period immediately prior  to  his  or
 her employment by the taxpayer.
   §  3.  Paragraphs  1 and 2 of subdivision (g-1) of section 1511 of the
 tax law, as amended by section 3 of part I of chapter 60 of the laws  of
 2016, are amended to read as follows:
   (1) Allowance of credit. For taxable years beginning on or after Janu-
 ary  first,  two thousand fifteen and before January first, two thousand
 [nineteen] TWENTY-ONE, a taxpayer shall  be  allowed  a  credit,  to  be
 computed  as  provided  in  this subdivision, against the tax imposed by
 this article, for hiring and employing, for not less than one  year  and
 for not less than thirty-five hours each week, a qualified veteran with-
 in  the  state.   The taxpayer may claim the credit in the year in which
 the qualified veteran completes one year of employment by the  taxpayer.
 If  the  taxpayer  claims the credit allowed under this subdivision, the
 taxpayer may not use the hiring of a qualified veteran that is the basis
 for this credit in the basis of any  other  credit  allowed  under  this
 article.
   (2) Qualified veteran. A qualified veteran is an individual:
   (A)  who  served  on  active duty in the United States army, navy, air
 force, marine corps, coast guard or the reserves thereof, or who  served
 in  active military service of the United States as a member of the army
 national guard, air national guard, New York guard  or  New  York  naval
 militia;  who  was  released  from  active  duty by general or honorable
 discharge after September eleventh, two thousand one;
   (B) who commences employment by the qualified  taxpayer  on  or  after
 January  first,  two  thousand  fourteen,  and before January first, two
 thousand [eighteen] TWENTY; and
   (C) who certifies by signed affidavit, under penalty of perjury,  that
 he or she has not been employed for thirty-five or more hours during any
 week  in  the  one hundred eighty day period immediately prior to his or
 her employment by the taxpayer.
   § 4. This act shall take effect immediately.

                                  PART R
 
   Section 1. Subdivision (c) of  section  25-a  of  the  labor  law,  as
 amended  by  section  1 of part AA of chapter 56 of the laws of 2015, is
 amended to read as follows:
   (c) A qualified employer shall be entitled to a tax  credit  equal  to
 (1)  [five]  SEVEN  hundred FIFTY dollars per month for up to six months
 for each qualified employee the employer employs in a full-time  job  or
 [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six
 months  for  each qualified employee the employer employs in a part-time
 job of at least twenty hours per week or ten hours  per  week  when  the
 qualified  employee is enrolled in high school full-time, (2) [one thou-
 sand] FIFTEEN  HUNDRED  dollars  for  each  qualified  employee  who  is
 employed for at least an additional six CONSECUTIVE months by the quali-
 fied  employer  in a full-time job or [five] SEVEN hundred FIFTY dollars
 for each qualified employee who is employed for at least  an  additional
 six  CONSECUTIVE  months by the qualified employer in a part-time job of
 at least twenty hours per week or ten hours per week when the  qualified

 S. 7509--B                         15
 
 employee  is  enrolled  in  high school full-time, and (3) an additional
 [one thousand] FIFTEEN HUNDRED dollars for each qualified  employee  who
 is employed for at least an additional year after the [first year of the
 employee's  employment]  COMPLETION OF THE TIME PERIODS AND SATISFACTION
 OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF  THIS  SUBDIVI-
 SION  by  the  qualified  employer  in  a  full-time job or [five] SEVEN
 hundred FIFTY dollars for each qualified employee who is employed for at
 least an additional year after the [first year of the employee's employ-
 ment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE  CONDITIONS
 SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVISION by the qualified
 employer  in  a  part-time  job of at least twenty hours per week or ten
 hours per week when the qualified employee is enrolled  in  high  school
 full time. The tax credits shall be claimed by the qualified employer as
 specified  in  subdivision  thirty-six  of section two hundred ten-B and
 subsection (tt) of section six hundred six of the tax law.
   § 2. Subdivisions (d), (e) and (f) of section 25-a of the  labor  law,
 subdivisions  (d) and (e) as amended by section 1 of subpart A of part N
 of chapter 59 of the laws of 2017 and  subdivision  (f)  as  amended  by
 section  1  of part AA of chapter 56 of the laws of 2015, are amended to
 read as follows:
   (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
 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,
 after  January  first, two thousand seventeen but no later than November
 thirtieth, two thousand seventeen for program five, after January 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 Novem-
 ber  thirtieth,  two  thousand  twenty  for program eight, after January
 first, two thousand twenty-one but no later than November thirtieth, two
 thousand twenty-one for program nine, and after January first, two thou-
 sand twenty-two but no later than November thirtieth, two thousand twen-
 ty-two for program ten. The qualified employees must start their employ-
 ment 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 thou-
 sand fifteen for program three, on or after January first, two  thousand
 sixteen  but  no  later than December thirty-first, two thousand sixteen
 for program four, on or after January first, two thousand seventeen  but
 no  later than December thirty-first, two thousand seventeen for program
 five, on or after January first, two thousand eighteen but no later than
 December thirty-first, two thousand eighteen  for  program  six,  on  or
 after  January  first,  two thousand nineteen but no later than December
 thirty-first, two thousand nineteen for program seven, on or after Janu-
 ary first, two thousand twenty but no later than December  thirty-first,
 two  thousand  twenty  for program eight, on or after January first, two
 thousand twenty-one but no later than December thirty-first,  two  thou-

 S. 7509--B                         16
 
 sand  twenty-one  for  program  nine, and on or 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, ensuring that the process established will minimize any undue
 delay  in  issuing  the certificate of eligibility. Any regulations that
 the commissioner determines are necessary 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 but
 not limited to 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.] AS PART OF SUCH APPLICATION, AN EMPLOYER MUST:
   (1) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
 TAX INFORMATION WITH THE COMMISSIONER. HOWEVER, ANY  INFORMATION  SHARED
 AS  A  RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR
 INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW, AND
   (2) ALLOW THE COMMISSIONER AND ITS AGENTS AND THE DEPARTMENT OF  TAXA-
 TION  AND FINANCE AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND RECORDS
 OF EMPLOYERS THE COMMISSIONER MAY REQUIRE TO MONITOR COMPLIANCE.
   (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 PRELIMINARY certificate of eligibility that establishes
 the employer as a qualified employer.  The  PRELIMINARY  certificate  of
 eligibility  shall  specify  the  maximum  amount of tax credit that the
 employer [will] MAY be allowed to claim and the program year under which
 it [can] MAY be claimed. THE MAXIMUM AMOUNT OF TAX CREDIT  THE  EMPLOYER
 IS  ALLOWED  TO CLAIM SHALL BE COMPUTED AS PRESCRIBED IN SUBDIVISION (C)
 OF THIS SECTION.
   (f) The commissioner shall annually publish a report. Such report must
 contain the names and addresses of any  employer  issued  a  PRELIMINARY
 certificate  of  eligibility  under  this  section,  [and] the [maximum]
 amount of New York youth works  tax  credit  allowed  to  the  QUALIFIED
 employer  as  specified on [such] AN ANNUAL FINAL certificate of [eligi-
 bility] TAX CREDIT AND  ANY  OTHER  INFORMATION  AS  DETERMINED  BY  THE
 COMMISSIONER.
   §  3.  Section  25-a  of  the labor law is amended by adding three new
 subdivisions (e-1), (e-2) and (e-3) to read as follows:
   (E-1)(1) TO RECEIVE AN ANNUAL FINAL CERTIFICATE  OF  TAX  CREDIT,  THE
 QUALIFIED  EMPLOYER  MUST  ANNUALLY SUBMIT, ON OR BEFORE JANUARY THIRTY-
 FIRST OF THE CALENDAR YEAR SUBSEQUENT TO THE PAYMENT OF WAGES PAID TO AN
 ELIGIBLE EMPLOYEE, A REPORT TO THE COMMISSIONER, IN A FORM PRESCRIBED BY
 THE COMMISSIONER. THE REPORT MUST  DEMONSTRATE  THAT  THE  EMPLOYER  HAS
 SATISFIED  ALL ELIGIBILITY REQUIREMENTS AND PROVIDED ALL THE INFORMATION
 NECESSARY FOR THE COMMISSIONER TO COMPUTE AN  ACTUAL  AMOUNT  OF  CREDIT
 ALLOWED.
   (2)  AFTER REVIEWING THE REPORT AND FINDING IT SUFFICIENT, THE COMMIS-
 SIONER SHALL ISSUE AN ANNUAL  FINAL  CERTIFICATE  OF  TAX  CREDIT.  SUCH
 CERTIFICATE  SHALL  INCLUDE,  IN  ADDITION  TO ANY OTHER INFORMATION THE
 COMMISSIONER DETERMINES IS NECESSARY, THE FOLLOWING INFORMATION:

 S. 7509--B                         17

   (I) THE NAME AND  EMPLOYER  IDENTIFICATION  NUMBER  OF  THE  QUALIFIED
 EMPLOYER;
   (II) THE PROGRAM YEAR FOR THE CORRESPONDING CREDIT AWARD;
   (III)  THE  ACTUAL AMOUNT OF CREDIT TO WHICH THE QUALIFIED EMPLOYER IS
 ENTITLED FOR THAT CALENDAR YEAR OR THE FISCAL YEAR IN WHICH  THE  ANNUAL
 FINAL  CERTIFICATE  IS  ISSUED,  WHICH  ACTUAL  AMOUNT CANNOT EXCEED THE
 AMOUNT OF CREDIT LISTED ON THE PRELIMINARY CERTIFICATE BUT MAY  BE  LESS
 THAN SUCH AMOUNT; AND
   (IV)  A UNIQUE CERTIFICATE NUMBER IDENTIFYING THE ANNUAL FINAL CERTIF-
 ICATE OF TAX CREDIT.
   (E-2) IN DETERMINING THE AMOUNT OF CREDIT FOR PURPOSES OF  THE  ANNUAL
 FINAL  CERTIFICATE OF TAX CREDIT, THE PORTION OF THE CREDIT DESCRIBED IN
 PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION SHALL  BE  ALLOWED  FOR
 THE CALENDAR YEAR IN WHICH THE WAGES ARE PAID TO THE QUALIFIED EMPLOYEE,
 THE  PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (C)
 OF THIS SECTION SHALL BE ALLOWED FOR THE  CALENDAR  YEAR  IN  WHICH  THE
 ADDITIONAL  SIX  CONSECUTIVE  MONTH  PERIOD ENDS, AND THE PORTION OF THE
 CREDIT DESCRIBED IN PARAGRAPH THREE OF SUBDIVISION (C) OF  THIS  SECTION
 SHALL  BE  ALLOWED FOR THE CALENDAR YEAR IN WHICH THE ADDITIONAL YEAR OF
 CONSECUTIVE EMPLOYMENT ENDS AFTER THE COMPLETION OF THE TIME PERIODS AND
 SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE  AND  TWO  OF
 SUBDIVISION  (C)  OF THIS SECTION.   IF THE QUALIFIED EMPLOYER'S TAXABLE
 YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE  ENTITLED  TO  CLAIM  THE
 CREDIT  AS  CALCULATED  ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON
 THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE  OF  TAX
 CREDIT  WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL
 YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT  AS  CALCULATED
 ON  THE  ANNUAL  FINAL  CERTIFICATE  OF TAX CREDIT ON THE RETURN FOR THE
 FISCAL YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL  CERTIF-
 ICATE OF TAX CREDIT IS ISSUED.
   (E-3)  THE  COMMISSIONER  SHALL ESTABLISH GUIDELINES AND CRITERIA THAT
 SPECIFY REQUIREMENTS FOR EMPLOYERS TO PARTICIPATE IN THE PROGRAM INCLUD-
 ING CRITERIA FOR CERTIFYING QUALIFIED EMPLOYEES, AND ISSUING THE PRELIM-
 INARY CERTIFICATE OF ELIGIBILITY AND ANNUAL  FINAL  CERTIFICATE  OF  TAX
 CREDIT.   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 BUT NOT LIMITED TO  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.
   § 4. Paragraph (a) 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:
   (a) A taxpayer that has been certified by the commissioner of labor as
 a  qualified employer pursuant to section twenty-five-a of the labor law
 shall be allowed a credit against the tax imposed by this article  equal
 to (i) [five] SEVEN hundred FIFTY dollars per month for up to six months
 for  each  qualified employee the employer employs in a full-time job or
 [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six
 months for each qualified employee the employer employs in  a  part-time
 job  of  at  least  twenty hours per week or ten hours per week when the
 qualified employee is enrolled in high school full-time, (ii) [one thou-
 sand] FIFTEEN  HUNDRED  dollars  for  each  qualified  employee  who  is
 employed for at least an additional six CONSECUTIVE months by the quali-

 S. 7509--B                         18
 
 fied  employer  in a full-time job or [five] SEVEN hundred FIFTY dollars
 for each qualified employee who is employed for at least  an  additional
 six  CONSECUTIVE  months by the qualified employer in a part-time job of
 at  least twenty hours per week or ten hours per week when the qualified
 employee is enrolled in high school full-time, and (iii)  an  additional
 [one  thousand]  FIFTEEN HUNDRED dollars for each qualified employee who
 is employed for at least an additional year after the [first year of the
 employee's employment] COMPLETION OF THE TIME PERIODS  AND  SATISFACTION
 OF  THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARA-
 GRAPH by the qualified employer in  a  full-time  job  or  [five]  SEVEN
 hundred FIFTY dollars for each qualified employee who is employed for at
 least an additional year after the [first year of the employee's employ-
 ment]  COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS
 SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH by the  quali-
 fied  employer  in  a part-time job of at least twenty hours per week or
 ten hours per week when the  qualified  employee  is  enrolled  in  high
 school  full-time. For purposes of this subdivision, the term "qualified
 employee" shall have the same meaning as set forth in subdivision (b) of
 section twenty-five-a of the  labor  law.  The  portion  of  the  credit
 described in subparagraph (i) of this paragraph shall be allowed for the
 taxable  year in which the wages are paid to the qualified employee, the
 portion of the credit described in subparagraph (ii) of  this  paragraph
 shall  be  allowed in the taxable year in which the additional six month
 period ends, and the portion of the  credit  described  in  subparagraph
 (iii)  of  this  paragraph shall be allowed in the taxable year in which
 the additional year after the first year of employment ends.
   § 5. Paragraph (a) of subdivision 36 of section 210-B of the tax  law,
 as amended by section 4 of this act, is amended to read as follows:
   (a) A taxpayer that has been certified by the commissioner of labor as
 a  qualified employer pursuant to section twenty-five-a of the labor law
 AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS-
 SIONER shall be allowed a credit against the tax imposed by this article
 equal to [(i) seven hundred fifty dollars per month for up to six months
 for each qualified employee the employer employs in a full-time  job  or
 three  hundred  seventy-five  dollars per month for up to six months for
 each qualified employee the employer employs in a part-time  job  of  at
 least  twenty  hours  per  week or ten hours per week when the qualified
 employee is enrolled in high  school  full-time,  (ii)  fifteen  hundred
 dollars  for  each  qualified  employee  who is employed for at least an
 additional six consecutive months by the qualified employer in  a  full-
 time  job or seven hundred fifty dollars for each qualified employee who
 is employed for at least an additional six  consecutive  months  by  the
 qualified  employer in a part-time job of at least twenty hours per week
 or ten hours per week when the qualified employee is  enrolled  in  high
 school  full-time,  and  (iii) an additional fifteen hundred dollars for
 each qualified employee who is employed for at least an additional  year
 after  the completion of the time periods and satisfaction of the condi-
 tions set forth in subparagraphs (i) and (ii) of this paragraph  by  the
 qualified employer in a full-time job or seven hundred fifty dollars for
 each  qualified employee who is employed for at least an additional year
 after the completion of the time periods and satisfaction of the  condi-
 tions  set  forth in subparagraphs (i) and (ii) of this paragraph by the
 qualified employer in a part-time job of at least twenty hours per  week
 or  ten  hours  per week when the qualified employee is enrolled in high
 school full-time. For purposes of this subdivision, the term  "qualified
 employee" shall have the same meaning as set forth in subdivision (b) of

 S. 7509--B                         19

 section  twenty-five-a  of  the  labor  law.  The  portion of the credit
 described in subparagraph (i) of this paragraph shall be allowed for the
 taxable year in which the wages are paid to the qualified employee,  the
 portion  of  the credit described in subparagraph (ii) of this paragraph
 shall be allowed in the taxable year in which the additional  six  month
 period  ends,  and  the  portion of the credit described in subparagraph
 (iii) of this paragraph shall be allowed in the taxable  year  in  which
 the  additional year after the first year of employment ends] THE AMOUNT
 LISTED ON THE ANNUAL FINAL CERTIFICATE  OF  TAX  CREDIT  ISSUED  BY  THE
 COMMISSIONER  OF  LABOR  PURSUANT  TO SECTION TWENTY-FIVE-A OF THE LABOR
 LAW.  IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR  YEAR,  THE
 EMPLOYER  SHALL  BE  ENTITLED  TO  CLAIM THE CREDIT AS CALCULATED ON THE
 ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR  RETURN  FOR
 WHICH  THE  ANNUAL  FINAL  CERTIFICATE  OF TAX CREDIT WAS ISSUED. IF THE
 QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE  EMPLOYER  SHALL
 BE  ENTITLED  TO  CLAIM  THE  CREDIT  AS  CALCULATED ON THE ANNUAL FINAL
 CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT  ENCOM-
 PASSES  THE  DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT IS
 ISSUED. FOR THE  PURPOSES  OF  THIS  SUBDIVISION,  THE  TERM  "QUALIFIED
 EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF
 SECTION TWENTY-FIVE-A OF THE LABOR LAW.
   §  6. Paragraph (c) of subdivision 36 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:
   (c)  The  taxpayer [may] SHALL be required to attach to its tax return
 its ANNUAL FINAL certificate of [eligibility] TAX CREDIT issued  by  the
 commissioner  of  labor  pursuant  to section twenty-five-a of the labor
 law. In no event shall the taxpayer be allowed a credit greater than the
 amount of the credit listed on the ANNUAL FINAL certificate  of  [eligi-
 bility]  TAX  CREDIT.   Notwithstanding any provision of this chapter to
 the contrary, the commissioner  and  the  commissioner's  designees  may
 release the names and addresses of any taxpayer claiming this credit and
 the  amount of the credit earned by the taxpayer.  Provided, however, if
 a taxpayer claims this credit 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.
   §  7. Paragraph 1 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:
   (1) A taxpayer that has been certified by the commissioner of labor as
 a  qualified employer pursuant to section twenty-five-a of the labor law
 shall be allowed a credit against the tax imposed by this article  equal
 to (A) [five] SEVEN hundred FIFTY dollars per month for up to six months
 for  each  qualified employee the employer employs in a full-time job or
 [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six
 months for each qualified employee the employer employs in  a  part-time
 job  of  at  least  twenty hours per week or ten hours per week when the
 qualified employee is enrolled in high school full-time,  and  (B)  [one
 thousand]  FIFTEEN  HUNDRED  dollars  for each qualified employee who is
 employed for at least an additional six CONSECUTIVE months by the quali-
 fied employer in a full-time job or [five] SEVEN hundred  FIFTY  dollars
 for  each  qualified employee who is employed for at least an additional
 six CONSECUTIVE months by the qualified employer in a part-time  job  of
 at  least twenty hours per week or ten hours per week when the qualified
 employee is enrolled in high school full-time,  and  (C)  an  additional

 S. 7509--B                         20
 
 [one  thousand]  FIFTEEN HUNDRED dollars for each qualified employee who
 is employed for at least an additional year after the [first year of the
 employee's employment] COMPLETION OF THE TIME PERIODS  AND  SATISFACTION
 OF  THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS SUBSECTION
 by the qualified employer in a full-time job  or  [five]  SEVEN  hundred
 FIFTY  dollars  for each qualified employee who is employed for at least
 an additional year after the [first year of the  employee's  employment]
 COMPLETION  OF  THE  TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET
 FORTH IN SUBPARAGRAPHS A AND B  OF  THIS  SUBSECTION  by  the  qualified
 employer  in  a  part-time  job of at least twenty hours per week or ten
 hours per week when the qualified employee is enrolled  in  high  school
 full-time.  A  taxpayer  that is a partner in a partnership, member of a
 limited liability company or shareholder in an S  corporation  that  has
 been  certified  by  the  commissioner  of labor as a qualified employer
 pursuant to section twenty-five-a of the labor law shall be allowed  its
 pro  rata share of the credit earned by the partnership, limited liabil-
 ity company or S corporation. For purposes of this subsection, the  term
 "qualified  employee" shall have the same meaning as set forth in subdi-
 vision (b) of section twenty-five-a of the labor law. The portion of the
 credit described in subparagraph (A) of this paragraph shall be  allowed
 for  the  taxable  year  in  which  the  wages are paid to the qualified
 employee, the portion of the credit described  in  subparagraph  (B)  of
 this  paragraph  shall be allowed in the taxable year in which the addi-
 tional six month period ends, and the portion of the credit described in
 subparagraph (C) of this paragraph shall be allowed in the taxable  year
 in which the additional year after the first year of employment ends.
   §  8. Paragraph 1 of subsection (tt) of section 606 of the tax law, as
 amended by section 7 of this act, is amended to read as follows:
   (1) A taxpayer that has been certified by the commissioner of labor as
 a qualified employer pursuant to section twenty-five-a of the labor  law
 AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS-
 SIONER shall be allowed a credit against the tax imposed by this article
 equal to [(A) seven hundred fifty dollars per month for up to six months
 for  each  qualified employee the employer employs in a full-time job or
 three hundred seventy-five dollars per month for up to  six  months  for
 each  qualified  employee  the employer employs in a part-time job of at
 least twenty hours per week or ten hours per  week  when  the  qualified
 employee  is  enrolled in high school full-time, and (B) fifteen hundred
 dollars for each qualified employee who is  employed  for  at  least  an
 additional  six  consecutive months by the qualified employer in a full-
 time job or seven hundred fifty dollars for each qualified employee  who
 is  employed  for  at  least an additional six consecutive months by the
 qualified employer in a part-time job of at least twenty hours per  week
 or  ten  hours  per week when the qualified employee is enrolled in high
 school full-time, and (C) an additional fifteen hundred dollars for each
 qualified employee who is employed for at least an additional year after
 the completion of the time periods and satisfaction  of  the  conditions
 set  forth  in subparagraphs A and B of this subsection by the qualified
 employer in a full-time job or seven  hundred  fifty  dollars  for  each
 qualified employee who is employed for at least an additional year after
 the  completion  of  the time periods and satisfaction of the conditions
 set forth in subparagraphs A and B of this subsection by  the  qualified
 employer  in  a  part-time  job of at least twenty hours per week or ten
 hours per week when the qualified employee is enrolled  in  high  school
 full-time]  THE  AMOUNT  LISTED  ON  THE ANNUAL FINAL CERTIFICATE OF TAX
 CREDIT ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO  SECTION  TWENTY-

 S. 7509--B                         21
 
 FIVE-A  OF THE LABOR LAW. A taxpayer that is a partner in a partnership,
 member of a limited liability company or shareholder in an S corporation
 that has [been certified by] RECEIVED ITS ANNUAL  FINAL  CERTIFICATE  OF
 TAX CREDIT FROM the commissioner of labor as a qualified employer pursu-
 ant  to  section twenty-five-a of the labor law shall be allowed its pro
 rata share of the credit earned by the  partnership,  limited  liability
 company  or  S  corporation.  [For purposes of this subsection, the term
 "qualified employee" shall have the same meaning as set forth in  subdi-
 vision (b) of section twenty-five-a of the labor law. The portion of the
 credit  described in subparagraph (A) of this paragraph shall be allowed
 for the taxable year in which  the  wages  are  paid  to  the  qualified
 employee,  the  portion  of  the credit described in subparagraph (B) of
 this paragraph shall be allowed in the taxable year in which  the  addi-
 tional six month period ends, and the portion of the credit described in
 subparagraph  (C) of this paragraph shall be allowed in the taxable year
 in which the additional year after the first year of  employment  ends.]
 IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOY-
 ER  SHALL  BE  ENTITLED  TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL
 FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR  RETURN  FOR  WHICH
 THE  ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED
 EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED
 TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX
 CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES  THE  DATE  ON
 WHICH  THE  ANNUAL  FINAL  CERTIFICATE OF TAX CREDIT IS ISSUED.  FOR THE
 PURPOSES OF THIS SUBSECTION, THE TERM "QUALIFIED  EMPLOYEE"  SHALL  HAVE
 THE   SAME   MEANING   AS  SET  FORTH  IN  SUBDIVISION  (B)  OF  SECTION
 TWENTY-FIVE-A OF THE LABOR LAW.
   § 9. Paragraph 3 of subsection (tt) of section 606 of the tax law,  as
 added  by  section  3  of  part  D of chapter 56 of the laws of 2011, is
 amended to read as follows:
   (3) The taxpayer [may] SHALL be required to attach to its  tax  return
 its  ANNUAL  FINAL certificate of [eligibility] TAX CREDIT issued by the
 commissioner of labor pursuant to section  twenty-five-a  of  the  labor
 law. In no event shall the taxpayer be allowed a credit greater than the
 amount  of  the credit listed on the ANNUAL FINAL certificate of [eligi-
 bility] TAX CREDIT. Notwithstanding any provision of this chapter to the
 contrary, the commissioner and the commissioner's designees may  release
 the  names  and  addresses  of any taxpayer claiming this credit and the
 amount of the credit earned by the taxpayer.   Provided, however,  if  a
 taxpayer  claims this credit because it is a member of a limited liabil-
 ity company, a partner in a partnership, or a shareholder in a  subchap-
 ter  S  corporation,  only the amount of credit earned by the entity and
 not the amount of credit claimed by the taxpayer may be released.
   § 10. This act shall take effect immediately,  provided  however  that
 (i)  section  one  of  this act shall apply to tax years beginning on or
 after January 1, 2018; (ii) sections four and seven of  this  act  shall
 apply  to  tax  years  beginning  on or after January 1, 2018 and before
 January 1, 2019; and (iii) sections two, three, five,  six,  eight,  and
 nine  of  this  act shall take effect January 1, 2019 and shall apply to
 tax years beginning on or after January 1, 2019.
 
                                  PART S
 
                           Intentionally Omitted
 
                                  PART T

 S. 7509--B                         22
 
                           Intentionally Omitted
 
                                  PART U
 
                           Intentionally Omitted
 
                                  PART V
 
                           Intentionally Omitted
 
                                  PART W
 
   Section  1. Subdivision (f) of section 1115 of the tax law, as amended
 by chapter 205 of the laws of 1968, is amended to read as follows:
   (f) (1) Services rendered by a veterinarian licensed and registered as
 required by the education law which constitute the practice  of  veteri-
 nary  medicine  as  defined  in  said law, including hospitalization for
 which no separate boarding charge is made, shall not be subject  to  tax
 under  paragraph  (3) of subdivision (c) of section eleven hundred five,
 but the exemption allowed by this subdivision shall not apply  to  other
 services  provided  by a veterinarian to pets and other animals, includ-
 ing, but not limited to, boarding, grooming and  clipping.  Articles  of
 tangible  personal  property designed for use in some manner relating to
 domestic animals or poultry, when sold by such a veterinarian, shall not
 be subject to tax under subdivision (a) of section eleven  hundred  five
 or under section eleven hundred ten. However, the sale of any such arti-
 cles of tangible personal property to a veterinarian shall not be deemed
 a  sale  for  resale  within  the meaning of [pargraph] PARAGRAPH (4) of
 subdivision (b) of section eleven hundred one and shall  not  be  exempt
 from retail sales tax.
   (2)  DRUGS  OR  MEDICINE  SOLD TO OR USED BY A VETERINARIAN FOR USE IN
 RENDERING SERVICES THAT ARE EXEMPT PURSUANT TO  PARAGRAPH  ONE  OF  THIS
 SUBDIVISION  TO  LIVESTOCK OR POULTRY USED IN THE PRODUCTION FOR SALE OF
 TANGIBLE PERSONAL PROPERTY BY FARMING, OR SOLD TO  A  PERSON  QUALIFYING
 FOR  THE  EXEMPTION  PROVIDED FOR IN PARAGRAPH SIX OF SUBDIVISION (A) OF
 THIS SECTION FOR USE BY SUCH PERSON ON SUCH LIVESTOCK OR POULTRY.
   § 2. Subdivision (a) of section 1119 of the tax  law,  as  amended  by
 chapter  686 of the laws of 1986 and as further amended by section 15 of
 part GG of chapter 63 of the  laws  of  2000,  is  amended  to  read  as
 follows:
   (a)  Subject  to the conditions and limitations provided for herein, a
 refund or credit shall be allowed for a tax paid pursuant to subdivision
 (a) of section eleven hundred five or section eleven hundred ten (1)  on
 the  sale or use of tangible personal property if the purchaser or user,
 in the performance of  a  contract,  later  incorporates  that  tangible
 personal  property into real property located outside this state, (2) on
 the sale or use of tangible personal property purchased in bulk, or  any
 portion  thereof,  which is stored and not used by the purchaser or user
 within this state if that property is  subsequently  reshipped  by  such
 purchaser  or  user  to  a point outside this state for use outside this
 state, (3) on the sale to or use by a  contractor  or  subcontractor  of
 tangible personal property if that property is used by him solely in the
 performance  of  a  pre-existing  lump  sum  or  unit price construction
 contract, (4) on the sale or use within this state of tangible  personal
 property,  not purchased for resale, if the use of such property in this
 state is restricted to fabricating such property (including  incorporat-

 S. 7509--B                         23
 
 ing  it  into  or  assembling it with other tangible personal property),
 processing, printing or imprinting such property and  such  property  is
 then  shipped  to a point outside this state for use outside this state,
 [(5)  on  the  sale  to or use by a veterinarian of drugs or medicine if
 such drugs or medicine  are  used  by  such  veterinarian  in  rendering
 services, which are exempt pursuant to subdivision (f) of section eleven
 hundred  fifteen  of  this  chapter, to livestock or poultry used in the
 production for sale of tangible personal property by farming or if  such
 drugs  or  medicine  are  sold  to a person qualifying for the exemption
 provided for in paragraph (6)  of  subdivision  (a)  of  section  eleven
 hundred fifteen of this chapter for use by such person on such livestock
 or  poultry,] or (6) on the sale of tangible personal property purchased
 for use in  constructing,  expanding  or  rehabilitating  industrial  or
 commercial  real property (other than property used or to be used exclu-
 sively by one or more registered vendors primarily engaged in the retail
 sale of tangible personal property) located in an area designated as  an
 empire zone pursuant to article eighteen-B of the general municipal law,
 but  only to the extent that such property becomes an integral component
 part of the real property. (For the purpose of clause (3) of the preced-
 ing sentence, the term "pre-existing lump sum or unit price construction
 contract" shall mean a contract for the construction of improvements  to
 real  property  under  which  the  amount  payable  to the contractor or
 subcontractor is fixed without regard to the costs incurred  by  him  in
 the  performance  thereof,  and  which  (i) was irrevocably entered into
 prior to the date of the enactment of this article or the enactment of a
 law increasing the rate of tax  imposed  under  this  article,  or  (ii)
 resulted  from the acceptance by a governmental agency of a bid accompa-
 nied by a bond or  other  performance  guaranty  which  was  irrevocably
 submitted  prior to such date.) Where the tax on the sale or use of such
 tangible personal property has been paid to the vendor, to  qualify  for
 such  refund or credit, such tangible personal property must be incorpo-
 rated into real property as required in clause (1) above,  reshipped  as
 required  in  clause  (2) above, used in the manner described in clauses
 (3), (4)[, (5)] and (6) above within three years after the date such tax
 was payable to the tax commission by  the  vendor  pursuant  to  section
 eleven  hundred  thirty-seven.  Where the tax on the sale or use of such
 tangible personal property was paid by the applicant for the  credit  or
 refund  directly  to  the  tax commission, to qualify for such refund or
 credit, such tangible personal property must be incorporated  into  real
 property  as  required  in  clause  (1)  above, reshipped as required in
 clause (2) above, used in the manner described  in  clauses  (3),  (4)[,
 (5)]  and (6) above within three years after the date such tax was paya-
 ble to the tax commission by such applicant pursuant to this article. An
 application for a refund or credit pursuant  to  this  section  must  be
 filed  with  such commission within the time provided by subdivision (a)
 of section eleven hundred thirty-nine. Such application shall be in such
 form as the tax commission may prescribe. Where an application for cred-
 it has been filed, the applicant may immediately take such credit on the
 return which is due coincident with or  immediately  subsequent  to  the
 time  that  he  files his application for credit. However, the taking of
 the credit on the return shall be deemed to be part of  the  application
 for credit and shall be subject to the provisions in respect to applica-
 tions  for  credit  in section eleven hundred thirty-nine as provided in
 subdivision (e) of such section. With respect to a sale or use described
 in clause (3)  above  where  a  pre-existing  lump  sum  or  unit  price
 construction  contract was irrevocably entered into prior to the date of

 S. 7509--B                         24
 
 the enactment of this article or the bid accompanied by the  performance
 guaranty  was  irrevocably submitted to the governmental agency prior to
 such date, the purchaser or user shall be entitled to a refund or credit
 only  of  the  amount by which the tax on such sale or use imposed under
 this article plus any tax imposed under the authority of  article  twen-
 ty-nine exceeds the amount computed by applying against such sale or use
 the  local  rate of tax, if any, in effect at the time such contract was
 entered into or such bid was submitted.
   In the case of the enactment of a  law  increasing  the  rate  of  tax
 imposed by this article, the purchaser or user shall be entitled only to
 a refund or credit of the amount by which the increased tax on such sale
 or use imposed under this article plus any tax imposed under the author-
 ity  of  article  twenty-nine  exceeds  the  amount computed by applying
 against such sale or use the state and local rates of tax in  effect  at
 the time such contract was entered into or such bid was submitted.
   § 3. This act shall take effect June 1, 2018, and shall apply to sales
 made and uses occurring on and after such date.
 
                                  PART X

   Section 1. Subdivision 1 of section 1131 of the tax law, as amended by
 chapter 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. 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 liabil-
 ity company, or any employee of an individual proprietorship who as such
 officer, director, employee or manager is under a duty to act  for  such
 corporation,   partnership,  limited  liability  company  or  individual
 proprietorship in complying with any requirement of this article, OR HAS
 SO ACTED; 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.
   §  2.  Subdivision  (a)  of section 1133 of the tax law, as amended by
 chapter 621 of the laws of 1967, is amended to read as follows:
   (a) (1) Except as otherwise provided in PARAGRAPH TWO OF THIS SUBDIVI-
 SION AND IN section eleven hundred  thirty-seven  OF  THIS  PART,  every
 person  required  to  collect  any  tax imposed by this article shall be
 personally liable for the tax  imposed,  collected  or  required  to  be
 collected  under this article. Any such person shall have the same right
 in respect to collecting the tax from his  customer  or  in  respect  to
 nonpayment  of  the tax by the customer as if the tax were a part of the
 purchase price of the property or service, amusement charge or rent,  as
 the  case  may be, and payable at the same time; provided, however, that
 the tax commission shall be joined as a party in any action or  proceed-
 ing brought to collect the tax.
   (2)  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  THIS ARTICLE: (I) THE
 COMMISSIONER SHALL GRANT THE RELIEF DESCRIBED IN SUBPARAGRAPH  (III)  OF
 THIS  PARAGRAPH TO A LIMITED PARTNER OF A LIMITED PARTNERSHIP (BUT NOT A

 S. 7509--B                         25
 
 PARTNER OF A LIMITED LIABILITY PARTNERSHIP) OR A  MEMBER  OF  A  LIMITED
 LIABILITY  COMPANY IF SUCH LIMITED PARTNER OR MEMBER DEMONSTRATES TO THE
 SATISFACTION OF THE COMMISSIONER THAT SUCH LIMITED PARTNER'S OR MEMBER'S
 OWNERSHIP  INTEREST  AND THE PERCENTAGE OF THE DISTRIBUTIVE SHARE OF THE
 PROFITS AND LOSSES OF SUCH  LIMITED  PARTNERSHIP  OR  LIMITED  LIABILITY
 COMPANY  ARE  EACH  LESS THAN FIFTY PERCENT, AND SUCH LIMITED PARTNER OR
 MEMBER WAS NOT UNDER A DUTY TO  ACT  FOR  SUCH  LIMITED  PARTNERSHIP  OR
 LIMITED  LIABILITY  COMPANY  IN  COMPLYING  WITH ANY REQUIREMENT OF THIS
 ARTICLE. PROVIDED, HOWEVER, THE COMMISSIONER MAY DENY AN APPLICATION FOR
 RELIEF TO ANY SUCH LIMITED PARTNER OR MEMBER WHO THE COMMISSIONER  FINDS
 HAS  ACTED  ON  BEHALF  OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY
 COMPANY IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE  OR  HAS  BEEN
 CONVICTED  OF  A  CRIME  PROVIDED  IN THIS CHAPTER OR WHO HAS A PAST-DUE
 LIABILITY, AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED  SEVENTY-ONE-V
 OF THIS CHAPTER.
   (II)  SUCH  LIMITED  PARTNER  OR MEMBER MUST SUBMIT AN APPLICATION FOR
 RELIEF, ON A FORM PRESCRIBED BY THE COMMISSIONER,  AND  THE  INFORMATION
 PROVIDED  IN  SUCH APPLICATION MUST BE TRUE AND COMPLETE IN ALL MATERIAL
 RESPECTS. PROVIDING MATERIALLY FALSE OR FRAUDULENT INFORMATION  ON  SUCH
 APPLICATION  SHALL  DISQUALIFY  SUCH  LIMITED  PARTNER OR MEMBER FOR THE
 RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH, SHALL VOID ANY
 AGREEMENT WITH THE COMMISSIONER WITH RESPECT TO SUCH RELIEF,  AND  SHALL
 RESULT  IN  SUCH  LIMITED PARTNER OR MEMBER BEARING STRICT LIABILITY FOR
 THE TOTAL AMOUNT OF TAX, INTEREST AND PENALTY OWED BY  THEIR  RESPECTIVE
 LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY PURSUANT TO THIS SUBDI-
 VISION.
   (III) A LIMITED PARTNER OF A LIMITED PARTNERSHIP OR MEMBER OF A LIMIT-
 ED LIABILITY COMPANY, WHO MEETS THE REQUIREMENTS SET FORTH IN THIS PARA-
 GRAPH  AND WHOSE APPLICATION FOR RELIEF IS APPROVED BY THE COMMISSIONER,
 SHALL BE LIABLE FOR THE PERCENTAGE OF THE ORIGINAL  SALES  AND  USE  TAX
 LIABILITY  OF  THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY
 COMPANY THAT REFLECTS  SUCH  LIMITED  PARTNER'S  OR  MEMBER'S  OWNERSHIP
 INTEREST OF DISTRIBUTIVE SHARE OF THE PROFITS AND LOSSES OF SUCH LIMITED
 PARTNERSHIP  OR  LIMITED  LIABILITY  COMPANY,  WHICHEVER IS HIGHER. SUCH
 ORIGINAL LIABILITY SHALL INCLUDE ANY INTEREST ACCRUED THEREON UP TO  AND
 INCLUDING  THE  DATE OF PAYMENT BY SUCH LIMITED PARTNER OR MEMBER AT THE
 UNDERPAYMENT RATE SET BY THE COMMISSIONER  PURSUANT  TO  SECTION  ELEVEN
 HUNDRED  FORTY-TWO  OF THIS PART, AND SHALL BE REDUCED BY THE SUM OF ANY
 PAYMENTS MADE BY (A) THE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPA-
 NY; (B) ANY PERSON REQUIRED TO COLLECT TAX NOT ELIGIBLE FOR RELIEF;  AND
 (C)  ANY  PERSON REQUIRED TO COLLECT TAX WHO WAS ELIGIBLE FOR RELIEF BUT
 HAD NOT BEEN APPROVED FOR RELIEF BY THE COMMISSIONER AT  THE  TIME  SUCH
 PAYMENT  WAS  MADE.  PROVIDED,  HOWEVER,  SUCH LIMITED PARTNER OR MEMBER
 SHALL NOT BE LIABLE FOR ANY PENALTY OWED BY SUCH LIMITED PARTNERSHIP  OR
 LIMITED LIABILITY COMPANY OR ANY OTHER PARTNER OR MEMBER OF SUCH LIMITED
 PARTNERSHIP  OR LIMITED LIABILITY COMPANY. ANY PAYMENT MADE BY A LIMITED
 PARTNER OR MEMBER PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH SHALL NOT
 BE CREDITED AGAINST THE LIABILITY OF OTHER LIMITED PARTNERS  OR  MEMBERS
 OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY WHO
 ARE  ELIGIBLE FOR THE SAME RELIEF; PROVIDED, HOWEVER THAT THE SUM OF THE
 AMOUNTS OWED BY ALL OF THE PERSONS REQUIRED TO COLLECT TAX OF A  LIMITED
 PARTNERSHIP  OR  LIMITED  LIABILITY  COMPANY  SHALL NOT EXCEED THE TOTAL
 LIABILITY OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY.
   § 3. This act shall take effect immediately.
 
                                  PART Y

 S. 7509--B                         26
 
                           Intentionally Omitted
 
                                  PART Z
 
   Section  1. Section 2 of subpart R of part A of chapter 61 of the laws
 of 2017, amending the tax law relating to extending  the  expiration  of
 the  authorization  to the county of Genesee to impose an additional one
 percent of sales and compensating use  taxes,  is  amended  to  read  as
 follows:
   §  2.  Notwithstanding any other provision of law to the contrary, the
 one percent increase in sales and compensating use taxes authorized  for
 the  county of Genesee until November 30, [2019] 2020 pursuant to clause
 (20) of subparagraph (i) of the opening paragraph of section 1210 of the
 tax law, as amended by section one of this act, shall be divided in  the
 same  manner  and  proportion  as  the  existing three percent sales and
 compensating use taxes in such county are divided.
   § 2. Section 2 of subpart Z of part A of chapter 61  of  the  laws  of
 2017,  amending  the  tax  law  relating  to the imposition of sales and
 compensating use taxes by the county of Monroe, is amended  to  read  as
 follows:
   §  2.  Notwithstanding  the  provisions of subdivisions (b) and (c) of
 section 1262 and section 1262-g of the tax law, net collections, as such
 term is defined in section 1262 of the tax law, derived from the imposi-
 tion of sales and compensating use taxes by the county of Monroe at  the
 additional  rate of one percent as authorized pursuant to clause (25) of
 subparagraph (i) of the opening paragraph of section  1210  of  the  tax
 law, as amended by section one of this act, which are in addition to the
 current net collections derived from the imposition of such taxes at the
 three  percent  rate authorized by the opening paragraph of section 1210
 of the tax law, shall be distributed and allocated as follows:  for  the
 period  of  December  1,  2017 through November 30, [2019] 2020 in cash,
 five percent to the school districts in the area of the  county  outside
 the  city  of  Rochester,  three percent to the towns located within the
 county, one and one-quarter percent to the villages located  within  the
 county,  and  ninety and three-quarters percent to the city of Rochester
 and county of Monroe.  The  amount  of  the  ninety  and  three-quarters
 percent  to  be  distributed  and allocated to the city of Rochester and
 county of Monroe shall be distributed and allocated to each so that  the
 combined  total  distribution  and allocation to each from the sales tax
 revenues pursuant to sections 1262 and 1262-g of the tax  law  and  this
 section  shall  result  in  the  same total amount being distributed and
 allocated to the city of Rochester and county of Monroe. The  amount  so
 distributed  and  allocated  to  the  county  shall  be  used for county
 purposes. The foregoing cash payments to the school districts  shall  be
 allocated on the basis of the enrolled public school pupils, thereof, as
 such  term  is  used  in subdivision (b) of section 1262 of the tax law,
 residing in the county of Monroe. The cash payments to the towns located
 within the county of Monroe shall be allocated on the basis of the ratio
 which the population of each town, exclusive of the  population  of  any
 village  or  portion  thereof  located within a town, bears to the total
 population of the towns, exclusive of the  population  of  the  villages
 located  within  such  towns.  The cash payments to the villages located
 within the county shall be allocated on the basis of the ratio which the
 population of each village bears to the total population of the villages
 located within the county. The term population as used in  this  section

 S. 7509--B                         27
 
 shall  have  the same meaning as used in subdivision (b) of section 1262
 of the tax law.
   §  3.  Section  3 of subpart EE of part A of chapter 61 of the laws of
 2017, amending the tax law relating to extending  the  authorization  of
 the county of Onondaga to impose an additional rate of sales and compen-
 sating use taxes, is amended to read as follows:
   §  3.  Notwithstanding  any contrary provision of law, net collections
 from the additional one percent rate of sales and compensating use taxes
 which may be imposed  by  the  county  of  Onondaga  during  the  period
 commencing  December 1, 2018 and ending November 30, [2019] 2020, pursu-
 ant to the authority of section 1210  of  the  tax  law,  shall  not  be
 subject  to any revenue distribution agreement entered into under subdi-
 vision (c) of section 1262 of the tax law, but shall  be  allocated  and
 distributed  or  paid,  at least quarterly, as follows: (i) 1.58% to the
 county of Onondaga for any county purpose; (ii) 97.79% to  the  city  of
 Syracuse;  and  (iii)  .63%  to  the school districts in accordance with
 subdivision (a) of section 1262 of the tax law.
   § 4. Section 2 of subpart GG of part A of chapter 61 of  the  laws  of
 2017,  amending  the  tax law relating to extending the authority of the
 county of Orange to impose an additional rate of sales and  compensating
 use taxes, is amended to read as follows:
   §  2.  Notwithstanding subdivision (c) of section 1262 of the tax law,
 net collections from any additional rate of sales and  compensating  use
 taxes  which  may  be  imposed by the county of Orange during the period
 commencing December 1, 2017, and ending November 30, [2019] 2020, pursu-
 ant to the authority of section 1210 of the tax law, shall  be  paid  to
 the  county of Orange and shall be used by such county solely for county
 purposes and shall not be subject to any revenue distribution  agreement
 entered  into  pursuant  to  the authority of subdivision (c) of section
 1262 of the tax law.
   § 5. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on June 29, 2017.
 
                                  PART AA
 
                           Intentionally Omitted
 
                                  PART BB
 
                           Intentionally Omitted
 
                                  PART CC
 
                           Intentionally Omitted
 
                                  PART DD
 
                           Intentionally Omitted
 
                                  PART EE

   Section  1.  Subdivision  1  of section 208 of the racing, pari-mutuel
 wagering and breeding law, as amended by chapter  140  of  the  laws  of
 2008, is amended to read as follows:
   1.  In consideration of the franchise and in accordance with its fran-
 chise agreement, the franchised corporation shall remit  to  the  state,

 S. 7509--B                         28
 
 each year, no later than April fifth, a franchise fee payment. The fran-
 chise  fee  shall be calculated and equal to the lesser of paragraph (a)
 or (b) of this subdivision as follows: (a) adjusted net income,  includ-
 ing  all sources of audited generally accepted accounting principles net
 income as of December thirty-first (i) plus the amount  of  depreciation
 and  amortization  for  such  year as set forth on the statement of cash
 flows (ii) less the amount received by the  franchised  corporation  for
 capital  expenditures  and  (iii)  less  principal payments made for the
 repayment of debt; or (b) operating cash which is defined as cash avail-
 able on December thirty-first (i) which  excludes  all  restricted  cash
 accounts,  segregated  accounts  as per audited financial statements and
 cash on hand needed to fund the on-track pari-mutuel operations  through
 the vault, (ii) less [forty-five] THREE HUNDRED SIXTY-FIVE days of oper-
 ating  expenses  pursuant  to  generally  accepted accounting principles
 which shall be an average calculated  by  dividing  the  current  year's
 annual  budget  by  the number of days in such year and multiplying that
 number by [forty-five] THREE HUNDRED SIXTY-FIVE.
   § 2. 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,  ONLY  ON  THE  MAIN TRACK IN ITS CURRENT
 CONFIGURATION, ONLY IF SUCH RACES CONCLUDE BEFORE HALF PAST TEN O' CLOCK
 POST MERIDIAN, AND ONLY IF SUCH RACES OCCUR  ON  THURSDAYS,  FRIDAYS  OR
 SATURDAYS.  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 STAG-
 GERED.
   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.
   §  3.  An  advisory  committee  shall  be  established by the governor
 comprised of individuals with demonstrated interest in  the  performance

 S. 7509--B                         29
 
 of  thoroughbred  and  standardbred  race  horses  to review the present
 structure, operations and funding of equine drug  testing  and  research
 conducted  pursuant  to article nine of the racing, pari-mutuel wagering
 and  breeding  law.    At  a minimum, the advisory committee established
 pursuant to this section shall include among its membership: the  presi-
 dent  or executive director of a horsemen's organization representing at
 least fifty-one percent of the owners and trainers utilizing the facili-
 ties of the franchised corporation; the president or executive  director
 of  the  statewide  thoroughbred  breeders  association representing the
 majority of breeders of registered thoroughbreds in New York state;  the
 president  or executive director of a horsemen's organization represent-
 ing at least fifty-one percent of the owners and  trainers  utilizing  a
 facility  licensed  to  conduct  racing pursuant to article three of the
 racing, pari-mutuel wagering and breeding law; the president  or  execu-
 tive director of the statewide Standardbred breeders association repres-
 enting  the majority of breeders of registered Standardbreds in New York
 state; a representative of the franchised corporation established pursu-
 ant to section two hundred six of the racing, pari-mutuel  wagering  and
 breeding  law;  a  representative  of  a corporation licensed to conduct
 racing pursuant to article two of the racing, pari-mutuel  wagering  and
 breeding  law  that is not a franchised corporation; two representatives
 from separate corporations licensed to conduct racing pursuant to  arti-
 cle  three  of  the racing, pari-mutuel wagering and breeding law; and a
 representative from a state college within this state with  an  approved
 equine  science  program.    Recommendations  shall  be delivered to the
 temporary president of the Senate, speaker of the Assembly and  Governor
 by  December  1, 2018 regarding the future of such research, testing and
 funding. Members of the board shall not be considered policymakers.
   § 4. This act shall take effect immediately; provided,  however,  that
 the  amendments  to  section 203 of the racing, pari-mutuel wagering and
 breeding law made by section two of this act shall expire and be  deemed
 repealed  4 years after the first night of racing conducted after sunset
 pursuant to this act; provided that  the  New  York  Racing  Association
 shall  notify  the  legislative  bill drafting commission of the date of
 such night of racing in order that the commission may maintain an  accu-
 rate  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 offi-
 cers law.
 
                                  PART FF
 
   Section 1. Subdivision 2 of section 254  of  the  racing,  pari-mutuel
 wagering and breeding law is amended by adding a new paragraph h to read
 as follows:
   H.  AN AMOUNT AS SHALL BE DETERMINED BY THE FUND, BUT NOT IN EXCESS OF
 THREE PERCENT, TO SUPPORT AND PROMOTE THE ONGOING CARE  OF  RETIRED  NEW
 YORK-BRED  HORSES  IN  A MANNER THAT IS CONSISTENT WITH RULES ADOPTED BY
 THE FUND, PROVIDED, HOWEVER, THAT THE FUND SHALL NOT BE REQUIRED TO MAKE
 ANY ALLOCATION FOR SUCH PURPOSES.
   § 2. Subdivision 1 of section 332 of the racing, pari-mutuel  wagering
 and  breeding  law  is  amended  by  adding a new paragraph j to read as
 follows:
   J. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND, BUT NOT IN EXCESS  OF
 THREE  PERCENT,  TO  SUPPORT AND PROMOTE THE ONGOING CARE OF RETIRED NEW
 YORK-BRED HORSES IN A MANNER THAT IS CONSISTENT WITH  RULES  ADOPTED  BY

 S. 7509--B                         30
 
 THE FUND, PROVIDED, HOWEVER, THAT THE FUND SHALL NOT BE REQUIRED TO MAKE
 ANY ALLOCATION FOR SUCH PURPOSES.
   § 3. This act shall take effect immediately.
 
                                  PART GG
 
   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  OO  of  chapter  59 of the laws of 2017, is amended to read as
 follows:
   (a) Any  racing  association  or  corporation  or  regional  off-track
 betting  corporation,  authorized  to conduct pari-mutuel wagering under
 this chapter, desiring to display the simulcast of horse races on  which
 pari-mutuel  betting shall be permitted in the manner and subject to the
 conditions provided for in this article may apply to the commission  for
 a  license  so to do. Applications for licenses shall be in such form as
 may be prescribed by the commission and shall contain  such  information
 or  other material or evidence as the commission may require. No license
 shall be issued by the commission authorizing the simulcast transmission
 of thoroughbred races from a track located in Suffolk  county.  The  fee
 for  such  licenses shall be five hundred dollars per simulcast facility
 and for account wagering licensees that do not operate either  a  simul-
 cast facility that is open to the public within the state of New York or
 a  licensed racetrack within the state, twenty thousand dollars per year
 payable by the licensee to the commission for deposit into  the  general
 fund.  Except  as  provided  in  this  section, the commission shall not
 approve any application to conduct simulcasting into individual or group
 residences, homes or other areas for the purposes of  or  in  connection
 with  pari-mutuel wagering. The commission may approve simulcasting into
 residences, homes or other areas to be conducted jointly by one or  more
 regional  off-track  betting corporations and one or more of the follow-
 ing: a franchised corporation,  thoroughbred  racing  corporation  or  a
 harness racing corporation or association; provided (i) the simulcasting
 consists  only of those races on which pari-mutuel betting is authorized
 by this chapter at one or more simulcast  facilities  for  each  of  the
 contracting  off-track  betting  corporations which shall include wagers
 made in accordance with  section  one  thousand  fifteen,  one  thousand
 sixteen  and  one  thousand  seventeen of this article; provided further
 that the contract provisions or other simulcast  arrangements  for  such
 simulcast  facility  shall  be no less favorable than those in effect on
 January first, two thousand  five;  (ii)  that  each  off-track  betting
 corporation  having  within  its  geographic boundaries such residences,
 homes or other areas technically  capable  of  receiving  the  simulcast
 signal  shall be a contracting party; (iii) the distribution of revenues
 shall be subject to contractual agreement of  the  parties  except  that
 statutory  payments  to  non-contracting  parties,  if  any,  may not be
 reduced; provided, however, that nothing herein to  the  contrary  shall
 prevent a track from televising its races on an irregular basis primari-
 ly for promotional or marketing purposes as found by the commission. For
 purposes of this paragraph, the provisions of section one thousand thir-
 teen  of  this  article  shall  not  apply. Any agreement authorizing an
 in-home simulcasting experiment commencing prior to May fifteenth, nine-
 teen hundred ninety-five, may, and all its terms, be extended until June
 thirtieth, two thousand [eighteen] NINETEEN; 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

 S. 7509--B                         31
 
 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 [eighteen] NINETEEN; 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 OO of chapter 59 of the laws of 2017, 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 [eighteen] NINETEEN, the amount used exclusively
 for  purses  to  be  awarded  at races conducted by such receiving track
 shall be computed as follows: of the sums so retained, two and  one-half
 percent  of the total pools. Such amount shall be increased or decreased
 in the amount of fifty percent of the difference  in  total  commissions
 determined by comparing the total commissions available after July twen-
 ty-first,  nineteen  hundred  ninety-five  to the total commissions that
 would have been available to such  track  prior  to  July  twenty-first,
 nineteen hundred ninety-five.
   §  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  OO  of  chapter  59 of the laws of 2017, 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 [eighteen] NINETEEN and on any day regardless of
 whether  or not a franchised corporation is conducting a race meeting in
 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
 two thousand [eighteen] NINETEEN. On  any  day  on  which  a  franchised
 corporation has not scheduled a racing program but a thoroughbred racing
 corporation  located  within  the state is conducting racing, every off-
 track betting corporation branch office and every simulcasting  facility
 licensed  in  accordance  with  section  one  thousand  seven (that have
 entered into a written agreement  with  such  facility's  representative
 horsemen's  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 OO of chapter 59 of
 the laws of 2017, 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 [eighteen] NINETEEN. 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

 S. 7509--B                         32
 
 of part OO of chapter 59 of the laws of 2017,  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 [eighteen]  NINETEEN.  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 OO of chapter
 59 of the laws of 2017, is amended to read as follows:
   Notwithstanding  any  other  provision of this chapter, for the period
 July twenty-fifth, two thousand one through September eighth, two  thou-
 sand [seventeen] EIGHTEEN, 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 OO of chapter  59  of  the
 laws of 2017, 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,  [2018]  2019;  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

 S. 7509--B                         33
 
 8 of part OO of chapter 59 of the laws of 2017, 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, [2018] 2019; 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
 OO of chapter 59 of the laws of 2017, is amended to read as follows:
   (a)  The  franchised  corporation  authorized  under  this  chapter to
 conduct pari-mutuel betting at a race meeting or races run thereat shall
 distribute all sums deposited in any pari-mutuel pool to the holders  of
 winning  tickets therein, provided such tickets be presented for payment
 before April first of the year following the  year  of  their  purchase,
 less  an  amount  which  shall be established and retained by such fran-
 chised corporation of between twelve to  seventeen  per  centum  of  the
 total  deposits in pools resulting from on-track regular bets, and four-
 teen to twenty-one per centum of the total deposits in  pools  resulting
 from on-track multiple bets and fifteen to twenty-five per centum of the
 total  deposits in pools resulting from on-track exotic bets and fifteen
 to thirty-six per centum of the total deposits in pools  resulting  from
 on-track  super  exotic  bets, plus the breaks. The retention rate to be
 established is subject to the prior approval of the  gaming  commission.
 Such  rate  may not be changed more than once per calendar quarter to be
 effective on the first day of the calendar quarter.  "Exotic  bets"  and
 "multiple  bets"  shall  have  the  meanings  set  forth in section five
 hundred nineteen of this chapter. "Super exotic  bets"  shall  have  the
 meaning  set  forth  in  section  three hundred one of this chapter. For
 purposes of this section, a "pick six bet" shall mean a  single  bet  or
 wager on the outcomes of six races. The breaks are hereby defined as the
 odd  cents over any multiple of five for payoffs greater than one dollar
 five cents but less than five dollars, over  any  multiple  of  ten  for
 payoffs  greater  than  five  dollars but less than twenty-five dollars,
 over any multiple of twenty-five for payoffs  greater  than  twenty-five
 dollars but less than two hundred fifty dollars, or over any multiple of
 fifty  for  payoffs over two hundred fifty dollars. Out of the amount so
 retained there shall be paid  by  such  franchised  corporation  to  the
 commissioner  of  taxation and finance, as a reasonable tax by the state
 for the privilege of conducting pari-mutuel betting on the races run  at
 the  race  meetings  held  by such franchised corporation, the following
 percentages of the total pool for regular and  multiple  bets  five  per
 centum  of regular bets and four per centum of multiple bets plus twenty
 per centum of the breaks; for  exotic  wagers  seven  and  one-half  per
 centum  plus  twenty per centum of the breaks, and for super exotic bets
 seven and one-half per centum plus fifty per centum of the  breaks.  For
 the  period  June  first, nineteen hundred ninety-five through September
 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
 three per centum and such tax on multiple wagers shall be two  and  one-
 half  per  centum,  plus twenty per centum of the breaks. For the period
 September tenth, nineteen  hundred  ninety-nine  through  March  thirty-
 first,  two  thousand  one, such tax on all wagers shall be two and six-
 tenths per centum and for the  period  April  first,  two  thousand  one

 S. 7509--B                         34
 
 through  December  thirty-first,  two thousand [eighteen] NINETEEN, 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
 [eighteen] NINETEEN, such payment  shall  be  seven-tenths  of  one  per
 centum of such pools.
   § 10. This act shall take effect immediately.
 
                                  PART HH
 
                           Intentionally Omitted
 
                                  PART II
 
   Section  1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision
 b of section 1612 of the tax law are REPEALED  and  a  new  subparagraph
 (ii) is added to read as follows:
   (II) LESS A VENDOR'S FEE THE AMOUNT OF WHICH IS TO BE PAID FOR SERVING
 AS A LOTTERY AGENT TO THE TRACK OPERATOR OF A VENDOR TRACK OR THE OPERA-
 TOR  OF  ANY  OTHER VIDEO LOTTERY GAMING FACILITY AUTHORIZED PURSUANT TO
 SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE:
   (A) WHEN A VENDOR TRACK IS LOCATED  WITHIN  DEVELOPMENT  ZONE  ONE  AS
 DEFINED  BY  SECTION  THIRTEEN  HUNDRED  TEN  OF THE RACING, PARI-MUTUEL
 WAGERING AND BREEDING LAW, AT A RATE OF THIRTY-NINE AND ONE-HALF PERCENT
 OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER;
   (B) WHEN A VENDOR TRACK IS LOCATED  WITHIN  DEVELOPMENT  ZONE  TWO  AS
 DEFINED  BY  SECTION  THIRTEEN  HUNDRED  TEN  OF THE RACING, PARI-MUTUEL
 WAGERING AND BREEDING LAW, AT A RATE OF FORTY-THREE AND ONE-HALF PERCENT
 OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER; PROVIDED, HOWEVER, AT A VENDOR  TRACK  LOCATED
 WITHIN  FIFTEEN MILES OF A DESTINATION RESORT GAMING FACILITY AUTHORIZED
 PURSUANT TO ARTICLE THIRTEEN OF THE  RACING,  PARI-MUTUEL  WAGERING  AND
 BREEDING  LAW  SHALL RECEIVE A VENDOR FEE AT A RATE OF FIFTY-ONE PERCENT
 OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER; AND THAT AT  A  VENDOR  TRACK  LOCATED  WITHIN
 FORTY MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN
 25  U.S.C.  § 2703 (8) SHALL RECEIVE A VENDOR FEE AT A RATE OF FIFTY-SIX
 PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR  TRACK  AFTER  PAYOUT
 FOR PRIZES PURSUANT TO THIS CHAPTER;
   (C)  WHEN  A VIDEO LOTTERY FACILITY IS OPERATED AT AQUEDUCT RACETRACK,
 AT A RATE OF FORTY-SEVEN PERCENT OF THE TOTAL  REVENUE  WAGERED  AT  THE
 VIDEO  LOTTERY  GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS
 CHAPTER; PROVIDED, HOWEVER, UPON 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 ARTICLE  OR
 APRIL  FIRST, TWO THOUSAND NINETEEN, SUCH RATE SHALL BE FIFTY PERCENT OF
 THE TOTAL REVENUE WAGERED AT THE VIDEO  LOTTERY  GAMING  FACILITY  AFTER
 PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;

 S. 7509--B                         35
 
   (D)  WHEN  A VIDEO LOTTERY GAMING FACILITY IS LOCATED IN EITHER NASSAU
 OR SUFFOLK COUNTIES AND IS OPERATED BY A CORPORATION ESTABLISHED  PURSU-
 ANT  TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND
 BREEDING LAW, AT A RATE OF  FORTY-FIVE  PERCENT  OF  THE  TOTAL  REVENUE
 WAGERED  AT  THE  VIDEO  LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER;
   (E) NOTWITHSTANDING ANY PROVISION OF  LAW  TO  THE  CONTRARY,  WHEN  A
 VENDOR  TRACK  IS  LOCATED  WITHIN REGION ONE OR TWO OF DEVELOPMENT ZONE
 TWO, AS SUCH ZONE IS DEFINED IN SECTION  THIRTEEN  HUNDRED  TEN  OF  THE
 RACING,  PARI-MUTUEL  WAGERING  AND  BREEDING  LAW, OR IS LOCATED WITHIN
 REGION SIX OF SUCH DEVELOPMENT ZONE TWO AND IS  LOCATED  WITHIN  ONTARIO
 COUNTY,  SUCH  VENDOR  TRACK  SHALL BE ENTITLED TO RECEIVE AN ADDITIONAL
 COMMISSION.   THE ADDITIONAL COMMISSION RECEIVED  BY  THE  VENDOR  TRACK
 SHALL BE CALCULATED PURSUANT TO SUBCLAUSE (I) OF THIS CLAUSE.
   (I)  THE  ADDITIONAL  COMMISSION  IS A PERCENTAGE OF THE TOTAL REVENUE
 WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR  PRIZES  PURSUANT  TO  THIS
 CHAPTER.  THAT PERCENTAGE IS CALCULATED BY SUBTRACTING THE EFFECTIVE TAX
 RATE ON ALL GROSS GAMING REVENUE PAID BY A GAMING  FACILITY  WITHIN  THE
 SAME  REGION  AS  THE  VENDOR  TRACK  FROM THE EDUCATION PERCENTAGE. THE
 EDUCATION PERCENTAGE IS NINETY PERCENT LESS THE PERCENTAGE OF THE VENDOR
 TRACK'S VENDOR FEE. FOR PURPOSES OF THIS CLAUSE, SENECA AND WAYNE  COUN-
 TIES SHALL BE DEEMED TO BE LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE
 TWO.
   (II)  THE  ADDITIONAL  COMMISSION  PAID  PURSUANT TO THIS SUBPARAGRAPH
 SHALL BE PAID TO A VENDOR TRACK NO LATER THAN SIXTY DAYS AFTER THE CLOSE
 OF THE FISCAL YEAR. THE ADDITIONAL COMMISSION AUTHORIZED BY THIS  CLAUSE
 SHALL  ONLY  BE  APPLIED  TO  REVENUE  WAGERED AT A VENDOR TRACK WHILE A
 GAMING FACILITY IN THE SAME REGION AS THAT  VENDOR  TRACK  IS  OPEN  AND
 OPERATING  PURSUANT  TO  AN  OPERATION  CERTIFICATE  ISSUED  PURSUANT TO
 SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING, PARI-MUTUEL  WAGERING
 AND BREEDING LAW.
   (F)  NOTWITHSTANDING  ANY  PROVISION  OF  LAW  TO THE CONTRARY, WHEN A
 VENDOR TRACK IS LOCATED WITHIN FORTY MILES OF A  NATIVE  AMERICAN  CLASS
 III  GAMING  FACILITY  AS  DEFINED  IN 25 U.S.C. § 2703 (8), SUCH VENDOR
 TRACK SHALL BE ENTITLED TO RECEIVE AN ADDITIONAL HOLD  HARMLESS  COMMIS-
 SION.    THE  ADDITIONAL HOLD HARMLESS COMMISSION RECEIVED BY THE VENDOR
 TRACK SHALL BE CALCULATED PURSUANT TO SUBCLAUSE (I) OF THIS CLAUSE.
   (I) THE ADDITIONAL HOLD HARMLESS COMMISSION  PAYABLE  FOR  ANY  FISCAL
 YEAR  SHALL  BE  AN  AMOUNT EQUAL TO THE BASE VENDOR COMMISSION LESS THE
 CURRENT VENDOR FEE. THE BASE VENDOR COMMISSION IS CALCULATED  BY  ADDING
 TOGETHER  THE VENDOR FEE, MARKETING ALLOWANCE, AND VENDOR CAPITAL AWARD,
 THAT THE FACILITY RECEIVED DURING THE  TWELVE-MONTH  PERIOD  IMMEDIATELY
 PRECEDING  JUNE  FIRST,  TWO  THOUSAND FIFTEEN. FOR THE PURPOSES OF THIS
 CALCULATION, A VENDOR FEE SHALL EXCLUDE ANY  DISTRIBUTIONS  REQUIRED  BY
 PARAGRAPH TWO OF THIS SUBDIVISION.
   (II)  THE  ADDITIONAL  HOLD  HARMLESS COMMISSION PAID PURSUANT TO THIS
 SUBPARAGRAPH SHALL BE PAID TO A VENDOR TRACK NO LATER  THAN  SIXTY  DAYS
 AFTER THE CLOSE OF THE FISCAL YEAR. THE ADDITIONAL HOLD HARMLESS COMMIS-
 SION  AUTHORIZED BY THIS CLAUSE SHALL ONLY BE APPLIED TO REVENUE WAGERED
 ON AND AFTER APRIL FIRST, TWO THOUSAND EIGHTEEN AT A VENDOR TRACK  WHILE
 THE  NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C. §
 2703 (8) WITHIN FORTY MILES OF THAT VENDOR TRACK IS OPEN AND OPERATING.
   (G) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,  ANY  OPERA-
 TORS  OF  A  VENDOR  TRACK  OR  THE OPERATORS OF ANY OTHER VIDEO LOTTERY
 GAMING FACILITY ELIGIBLE TO RECEIVE A CAPITAL AWARD AS OF DECEMBER THIR-
 TY-FIRST, TWO THOUSAND SEVENTEEN SHALL DEPOSIT  FROM  THEIR  VENDOR  FEE

 S. 7509--B                         36
 
 INTO  A  SEGREGATED ACCOUNT AN AMOUNT EQUAL TO FOUR PERCENT OF THE FIRST
 SIXTY-TWO MILLION FIVE HUNDRED THOUSAND DOLLARS OF  REVENUE  WAGERED  AT
 THE  VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER TO BE
 USED  EXCLUSIVELY  FOR  CAPITAL  INVESTMENTS, EXCEPT FOR AQUEDUCT, WHICH
 SHALL DEPOSIT INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO  ONE  PERCENT
 OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING 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
 ARTICLE  OR  APRIL  FIRST, TWO THOUSAND NINETEEN, WHEN AT SUCH TIME FOUR
 PERCENT OF ALL REVENUE WAGERED AT  THE  VIDEO  LOTTERY  GAMING  FACILITY
 AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE DEPOSITED INTO
 A  SEGREGATED  ACCOUNT  FOR CAPITAL INVESTMENTS. VENDOR TRACKS AND VIDEO
 LOTTERY GAMING FACILITIES SHALL  BE  PERMITTED  TO  WITHDRAW  FUNDS  FOR
 PROJECTS  APPROVED  BY  THE  COMMISSION TO IMPROVE THE FACILITIES OF THE
 VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY WHICH ENHANCE OR  MAINTAIN
 THE  VIDEO LOTTERY GAMING FACILITY INCLUDING, BUT NOT LIMITED TO HOTELS,
 OTHER LODGING FACILITIES, ENTERTAINMENT FACILITIES,  RETAIL  FACILITIES,
 DINING FACILITIES, EVENTS ARENAS, PARKING GARAGES AND OTHER IMPROVEMENTS
 AND  AMENITIES  CUSTOMARY  TO  A GAMING FACILITY, PROVIDED, HOWEVER, THE
 VENDOR TRACKS AND VIDEO LOTTERY GAMING FACILITIES SHALL BE PERMITTED  TO
 WITHDRAW  FUNDS  FOR  UNREIMBURSED  CAPITAL AWARDS APPROVED PRIOR TO THE
 EFFECTIVE DATE OF THIS SUBPARAGRAPH. ANY PROCEEDS FROM  THE  DIVESTITURE
 OF  ANY ASSETS ACQUIRED THROUGH THESE CAPITAL FUNDS OR ANY PRIOR CAPITAL
 AWARD MUST BE DEPOSITED INTO THIS SEGREGATED ACCOUNT, PROVIDED  THAT  IF
 THE  VENDOR  TRACK  OR  VIDEO LOTTERY GAMING FACILITY CEASES USE OF SUCH
 ASSET FOR GAMING PURPOSES OR TRANSFERS THE ASSET  TO  A  RELATED  PARTY,
 SUCH  VENDOR  TRACK  OR  VIDEO  LOTTERY GAMING FACILITY SHALL DEPOSIT AN
 AMOUNT EQUAL TO THE FAIR MARKET VALUE OF THAT ASSET INTO THE ACCOUNT. IN
 THE EVENT A VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY CEASES  GAMING
 OPERATIONS, ANY BALANCE IN THE ACCOUNT ALONG WITH AN AMOUNT EQUAL TO THE
 VALUE  OF ALL REMAINING ASSETS ACQUIRED THROUGH THIS FUND OR PRIOR CAPI-
 TAL AWARDS SHALL BE RETURNED TO THE STATE FOR  DEPOSIT  INTO  THE  STATE
 LOTTERY  FUND FOR EDUCATION AID, EXCEPT FOR AQUEDUCT, WHICH SHALL RETURN
 TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR  EDUCATION  AID
 ALL AMOUNTS IN EXCESS OF THE AMOUNT NEEDED TO FUND A PROJECT PURSUANT TO
 AN  AGREEMENT WITH THE OPERATOR TO CONSTRUCT AN EXPANSION OF THE FACILI-
 TY, HOTEL, AND CONVENTION AND EXHIBITION SPACE REQUIRING A MINIMUM CAPI-
 TAL INVESTMENT OF THREE  HUNDRED  MILLION  DOLLARS  AND  ANY  SUBSEQUENT
 AMENDMENTS  TO SUCH AGREEMENT. THE COMPTROLLER OR HIS LEGALLY AUTHORIZED
 REPRESENTATIVE IS AUTHORIZED TO AUDIT ANY AND ALL EXPENDITURES MADE  OUT
 OF  THESE  SEGREGATED CAPITAL ACCOUNTS. NOTWITHSTANDING THE PRECEDING, A
 VENDOR TRACK LOCATED IN ONTARIO COUNTY MAY WITHDRAW UP  TO  TWO  MILLION
 DOLLARS  FROM THIS ACCOUNT FOR THE PURPOSE OF CONSTRUCTING A TURF COURSE
 AT THE VENDOR TRACK.
   (H) NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRARY,  FREE  PLAY
 ALLOWANCE  CREDITS  AUTHORIZED BY THE DIVISION PURSUANT TO SUBDIVISION F
 OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF  THIS  ARTICLE  SHALL  NOT  BE
 INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY
 GAMES,  THE TOTAL AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR FEES
 PAYABLE TO THE OPERATORS OF VIDEO LOTTERY GAMING FACILITIES, FEES  PAYA-
 BLE  TO  THE  DIVISION'S  VIDEO LOTTERY GAMING EQUIPMENT CONTRACTORS, OR
 RACING SUPPORT PAYMENTS.
   (I) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERATOR
 OF A VENDOR TRACK OR THE OPERATOR OF  ANY  OTHER  VIDEO  LOTTERY  GAMING
 FACILITY  SHALL  FUND  A  MARKETING  AND  PROMOTION  PROGRAM  OUT OF THE

 S. 7509--B                         37
 
 VENDOR'S FEE. EACH OPERATOR SHALL SUBMIT AN ANNUAL  MARKETING  PLAN  FOR
 THE  REVIEW  AND APPROVAL OF THE COMMISSION AND ANY OTHER REQUIRED DOCU-
 MENTS DETAILING PROMOTIONAL ACTIVITIES AS PRESCRIBED BY THE  COMMISSION.
 THE  COMMISSION  SHALL  HAVE  THE  RIGHT  TO REJECT ANY ADVERTISEMENT OR
 PROMOTION THAT DOES NOT PROPERLY REPRESENT THE MISSION OR  INTERESTS  OF
 THE LOTTERY OR ITS PROGRAMS.
   (J)  NOTWITHSTANDING  CLAUSE  (G) OF THIS SUBPARAGRAPH, THE COMMISSION
 SHALL BE ABLE TO AUTHORIZE A VENDOR TRACK LOCATED WITHIN ONEIDA  COUNTY,
 WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, AND
 WHO  HAS  MAINTAINED  AT  LEAST  NINETY  PERCENT OF FULL-TIME EQUIVALENT
 EMPLOYEES AS THEY EMPLOYED IN THE YEAR TWO THOUSAND SIXTEEN, TO WITHDRAW
 FUNDS FROM THE SEGREGATED ACCOUNT ESTABLISHED  IN  CLAUSE  (G)  OF  THIS
 SUBPARAGRAPH  UP TO AN AMOUNT EQUAL TO FOUR PERCENT OF THE TOTAL REVENUE
 WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR  PRIZES  PURSUANT  TO  THIS
 CHAPTER EACH YEAR, FOR OPERATIONS.
   § 2. This act shall take effect immediately; provided, however, clause
 (J) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612
 of  the  tax law as added by section one of this act shall expire and be
 deemed repealed June 29, 2019.
 
                                  PART JJ
 
   Section 1. Subsection (a) of section 614 of the tax law, as amended by
 chapter 170 of the laws of 1994, is amended to read as follows:
   (a) Unmarried individual. For taxable years beginning  after  nineteen
 hundred  ninety-six, the New York standard deduction of a resident indi-
 vidual who is not married nor the head of a household  nor  a  surviving
 spouse nor an individual [whose federal exemption amount is zero] WHO IS
 CLAIMED AS A DEPENDENT BY ANOTHER NEW YORK STATE TAXPAYER shall be seven
 thousand  five  hundred dollars; for taxable years beginning in nineteen
 hundred ninety-six, such standard deduction shall be seven thousand four
 hundred dollars; for taxable years beginning in nineteen  hundred  nine-
 ty-five,  such  standard  deduction  shall  be  six thousand six hundred
 dollars; and for taxable years beginning after nineteen hundred  eighty-
 nine  and  before  nineteen hundred ninety-five, such standard deduction
 shall be six thousand dollars.
   § 2. Section 612  of  the  tax  law  is  amended  by  adding  two  new
 subsections (w) and (x) to read as follows:
   (W)  ALIMONY  MODIFICATIONS.  (1) IN THE CASE OF APPLICABLE ALIMONY OR
 SEPARATE MAINTENANCE PAYMENTS, THE FOLLOWING MODIFICATIONS SHALL APPLY:
   (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS  INCOME  ANY
 APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS MADE BY THE TAXPAYER
 DURING THE TAXABLE YEAR.
   (B) THERE SHALL BE ADDED TO FEDERAL ADJUSTED GROSS INCOME ANY APPLICA-
 BLE  ALIMONY  OR  SEPARATE MAINTENANCE PAYMENTS RECEIVED BY THE TAXPAYER
 DURING THE TAXABLE YEAR.
   (2) (A) THE TERM "ALIMONY  OR  SEPARATE  MAINTENANCE  PAYMENTS"  MEANS
 PAYMENTS  AS  DEFINED  UNDER SECTION SEVENTY-ONE OF THE INTERNAL REVENUE
 CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97.
   (B) THE TERM "APPLICABLE ALIMONY  OR  SEPARATE  MAINTENANCE  PAYMENTS"
 MEANS  PAYMENTS  MADE  UNDER  AN  ALIMONY  OR  SEPARATION INSTRUMENT (AS
 DEFINED IN SECTION SEVENTY-ONE OF THE INTERNAL REVENUE  CODE  IN  EFFECT
 IMMEDIATELY  PRIOR  TO  THE  ENACTMENT  OF  PUBLIC  LAW 115-97) THAT WAS
 EXECUTED AFTER DECEMBER THIRTY-FIRST, TWO  THOUSAND  EIGHTEEN,  AND  ANY
 DIVORCE  OR  SEPARATION  INSTRUMENT  EXECUTED ON OR BEFORE SUCH DATE AND

 S. 7509--B                         38
 
 MODIFIED AFTER SUCH DATE IF THE MODIFICATION EXPRESSLY PROVIDES THAT THE
 AMENDMENTS MADE BY THIS SECTION APPLY TO SUCH MODIFICATION.
   (X) QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES. (1) IN
 THE CASE OF APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING
 EXPENSES, THE FOLLOWING MODIFICATIONS SHALL APPLY:
   (A)  THERE  SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY
 APPLICABLE  QUALIFIED  MOVING  EXPENSE  REIMBURSEMENT  RECEIVED  BY  THE
 TAXPAYER DURING THE TAXABLE YEAR.
   (B)  THERE  SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY
 APPLICABLE MOVING EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR.
   (2) APPLICABLE  QUALIFIED  MOVING  EXPENSE  REIMBURSEMENT  AND  MOVING
 EXPENSES  ARE  THOSE  DEDUCTIONS AS ALLOWED BY PARAGRAPH (G) OF SECTIONS
 ONE HUNDRED THIRTY-TWO AND SECTION TWO HUNDRED SEVENTEEN,  RESPECTFULLY,
 OF  THE  INTERNAL  REVENUE  CODE  IMMEDIATELY  PRIOR TO THE ENACTMENT OF
 PUBLIC LAW 115-97.
   § 3. Subsection (a) of section 615 of  the  tax  law,  as  amended  by
 section  1  of  part HH of chapter 57 of the laws of 2010, is amended to
 read as follows:
   (a) General. If federal taxable income of  a  resident  individual  is
 determined  by  itemizing  deductions  OR  CLAIMING THE FEDERAL STANDARD
 DEDUCTION from his OR HER federal adjusted gross income, he OR  SHE  may
 elect  to  deduct his OR HER New York itemized deduction [in lieu of] OR
 CLAIM his OR HER New York standard  deduction.  The  New  York  itemized
 deduction  of a resident individual means the total amount of his OR HER
 deductions from federal adjusted gross income ALLOWED, other than feder-
 al deductions for personal exemptions, as provided in the  laws  of  the
 United  States  for  the taxable year,  AS SUCH DEDUCTIONS EXISTED IMME-
 DIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97 with  the  modifica-
 tions   specified   in  this  section,  except  as  provided  for  under
 subsections (f) and (g) of this section.
   § 4. Subdivision (a) of section 11-1714 of the administrative code  of
 the  city of New York, as amended by chapter 170 of the laws of 1994, is
 amended to read as follows:
   (a) Unmarried individual. For taxable years beginning  after  nineteen
 hundred ninety-six, the city standard deduction of a city resident indi-
 vidual  who  is  not married nor the head of a household nor a surviving
 spouse nor an individual [whose federal exemption amount is zero] WHO IS
 CLAIMED AS A DEPENDENT BY ANOTHER NEW YORK STATE TAXPAYER shall be seven
 thousand five hundred dollars; for taxable years beginning  in  nineteen
 hundred ninety-six, such standard deduction shall be seven thousand four
 hundred  dollars;  for taxable years beginning in nineteen hundred nine-
 ty-five, such standard deduction  shall  be  six  thousand  six  hundred
 dollars;  and for taxable years beginning after nineteen hundred eighty-
 nine and before nineteen hundred ninety-five,  such  standard  deduction
 shall be six thousand dollars.
   §  5.  Section  11-1712  of the administrative code of the city of New
 York is amended by adding two new subdivisions (u) and (v)  to  read  as
 follows:
   (U)  ALIMONY  MODIFICATIONS.  (1) IN THE CASE OF APPLICABLE ALIMONY OR
 SEPARATE MAINTENANCE PAYMENTS, THE FOLLOWING MODIFICATIONS SHALL APPLY:
   (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS  INCOME  ANY
 APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS MADE BY THE TAXPAYER
 DURING THE TAXABLE YEAR.
   (B) THERE SHALL BE ADDED TO FEDERAL ADJUSTED GROSS INCOME ANY APPLICA-
 BLE  ALIMONY  OR  SEPARATE MAINTENANCE PAYMENTS RECEIVED BY THE TAXPAYER
 DURING THE TAXABLE YEAR.

 S. 7509--B                         39
 
   (2) (A) THE TERM "ALIMONY  OR  SEPARATE  MAINTENANCE  PAYMENTS"  MEANS
 PAYMENTS  AS  DEFINED  UNDER SECTION SEVENTY-ONE OF THE INTERNAL REVENUE
 CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97.
   (B)  THE  TERM  "APPLICABLE  ALIMONY OR SEPARATE MAINTENANCE PAYMENTS"
 MEANS PAYMENTS MADE  UNDER  AN  ALIMONY  OR  SEPARATION  INSTRUMENT  (AS
 DEFINED  IN  SECTION  SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT
 IMMEDIATELY PRIOR TO THE  ENACTMENT  OF  PUBLIC  LAW  115-97)  THAT  WAS
 EXECUTED  AFTER  DECEMBER  THIRTY-FIRST,  TWO THOUSAND EIGHTEEN, AND ANY
 DIVORCE OR SEPARATION INSTRUMENT EXECUTED ON OR  BEFORE  SUCH  DATE  AND
 MODIFIED AFTER SUCH DATE IF THE MODIFICATION EXPRESSLY PROVIDES THAT THE
 AMENDMENTS MADE BY THIS SECTION APPLY TO SUCH MODIFICATION.
   (V) QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES. (1) IN
 THE CASE OF APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING
 EXPENSES, THE FOLLOWING MODIFICATIONS SHALL APPLY:
   (A)  THERE  SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY
 APPLICABLE  QUALIFIED  MOVING  EXPENSE  REIMBURSEMENT  RECEIVED  BY  THE
 TAXPAYER DURING THE TAXABLE YEAR.
   (B)  THERE  SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY
 APPLICABLE MOVING EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR.
   (2) APPLICABLE  QUALIFIED  MOVING  EXPENSE  REIMBURSEMENT  AND  MOVING
 EXPENSES ARE THOSE DEDUCTIONS AS ALLOWED BY PARAGRAPH (G) OF SECTION ONE
 HUNDRED  THIRTY-TWO  AND SECTION TWO HUNDRED SEVENTEEN, RESPECTFULLY, OF
 THE INTERNAL REVENUE CODE IMMEDIATELY PRIOR TO THE ENACTMENT  OF  PUBLIC
 LAW 115-97.
   §  6. Subdivision (a) of section 11-1715 of the administrative code of
 the city of New York, as amended by section 5 of part HH of  chapter  57
 of the laws of 2010, is amended to read as follows:
   (a)  General.  If federal taxable income of a city resident individual
 is determined by itemizing deductions OR CLAIMING THE  FEDERAL  STANDARD
 DEDUCTION  from  his OR HER federal adjusted gross income, such resident
 individual may elect to deduct his OR HER city  itemized  deduction  [in
 lieu  of] OR CLAIM his OR HER city standard deduction. The city itemized
 deduction of a city resident individual means the total amount of his OR
 HER deductions from federal adjusted gross income  ALLOWED,  other  than
 federal  deductions  for personal exemptions, as provided in the laws of
 the United States for the taxable year, AS SUCH DEDUCTIONS EXISTED IMME-
 DIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97 with  the  modifica-
 tions  specified  in this section, except as provided for under subdivi-
 sions (f) and (g) of this section.
   § 7. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART KK
 
   Section 1. Paragraph (b) of subdivision 6-a of section 208 of the  tax
 law,  as  amended  by section 5-a of part T of chapter 59 of the laws of
 2015, is amended to read as follows:
   (b) "Exempt CFC income" means (I) EXCEPT WITH RESPECT  TO  ANY  INCOME
 DEFINED  IN  SUBPARAGRAPHS  (II) AND (III) OF THIS PARAGRAPH, the income
 required to be included in the taxpayer's federal gross income  pursuant
 to  subsection (a) of section 951 of the internal revenue code, received
 from a corporation that  is  conducting  a  unitary  business  with  the
 taxpayer but is not included in a combined report with the taxpayer, AND
 (II)  NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION SIX
 OF THIS SECTION, THE INCOME REQUIRED TO BE INCLUDED  IN  THE  TAXPAYER'S
 FEDERAL  GROSS  INCOME PURSUANT TO SUBSECTION (A) OF SUCH SECTION 951 OF

 S. 7509--B                         40
 
 THE INTERNAL REVENUE CODE BY REASON OF SUBSECTION (A) OF SECTION 965  OF
 THE  INTERNAL REVENUE CODE, AS ADJUSTED BY SUBSECTION (B) OF SECTION 965
 OF THE INTERNAL REVENUE CODE, AND WITHOUT REGARD TO  SUBSECTION  (C)  OF
 SUCH  SECTION,  RECEIVED  FROM  A  CORPORATION THAT IS NOT INCLUDED IN A
 COMBINED REPORT WITH THE TAXPAYER, LESS, AND (III)  NOTWITHSTANDING  THE
 PROVISIONS  OF  PARAGRAPH  (A)  OF  SUBDIVISION SIX OF THIS SECTION, THE
 INCOME REQUIRED TO BE INCLUDED IN THE TAXPAYER'S  FEDERAL  GROSS  INCOME
 PURSUANT  TO SUBSECTION (A) OF SECTION 951 OF THE INTERNAL REVENUE CODE,
 WITHOUT REGARD TO THE DEDUCTION UNDER SECTION 250 OF THE INTERNAL REVEN-
 UE CODE, GENERATED BY A CORPORATION THAT IS NOT INCLUDED IN  A  COMBINED
 REPORT  WITH  THE TAXPAYER, less, in the discretion of the commissioner,
 any interest deductions directly  or  indirectly  attributable  to  that
 income.  In lieu of subtracting from its exempt CFC income the amount of
 those interest deductions, the taxpayer may make a revocable election to
 reduce its total exempt CFC income by forty  percent.  If  the  taxpayer
 makes  this election, the taxpayer must also make the elections provided
 for in paragraph (b) of subdivision six of this  section  and  paragraph
 (c)  of  this  subdivision.  If  the  taxpayer subsequently revokes this
 election, the taxpayer must revoke the elections provided for  in  para-
 graph  (b)  of subdivision six of this section and paragraph (c) of this
 subdivision. A taxpayer which does not make this election because it has
 no exempt CFC income will not  be  precluded  from  making  those  other
 elections.
   §  1-a.  Paragraph  (b)  of  subdivision  5-a of section 11-652 of the
 administrative code of the city of New York, as added by  section  1  of
 part D of chapter 60 of the laws of 2015, is amended to read as follows:
   (b)  "Exempt  CFC  income" means (I) EXCEPT WITH RESPECT TO ANY INCOME
 DEFINED IN SUBPARAGRAPHS (II) AND (III) OF THIS  PARAGRAPH,  the  income
 required  to be included in the taxpayer's federal gross income pursuant
 to subsection (a) of section nine  hundred  fifty-one  of  the  internal
 revenue  code,  received from a corporation that is conducting a unitary
 business with the taxpayer but is not included in a combined report with
 the taxpayer, (II) NOTWITHSTANDING THE PROVISIONS OF  PARAGRAPH  (A)  OF
 SUBDIVISION  SIX OF SECTION TWO HUNDRED EIGHT OF THE TAX LAW, THE INCOME
 REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME  PURSUANT
 TO  SUBSECTION (A) OF SECTION 951 OF THE INTERNAL REVENUE CODE BY REASON
 OF SUBSECTION (A) OF SECTION  965  OF  THE  INTERNAL  REVENUE  CODE,  AS
 ADJUSTED  BY SUBSECTION (B) OF SECTION 965 OF THE INTERNAL REVENUE CODE,
 AND WITHOUT REGARD TO SUBSECTION (C) OF SUCH SECTION,  RECEIVED  FROM  A
 CORPORATION THAT IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER,
 AND (III) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION
 SIX  OF SECTION TWO HUNDRED EIGHT OF THE TAX LAW, THE INCOME REQUIRED TO
 BE  INCLUDED  IN  THE  TAXPAYER'S  FEDERAL  GROSS  INCOME  PURSUANT   TO
 SUBSECTION  (A)  OF  SECTION  951  OF THE INTERNAL REVENUE CODE, WITHOUT
 REGARD TO THE DEDUCTION UNDER SECTION 250 OF THE INTERNAL REVENUE  CODE,
 GENERATED  BY  A  CORPORATION  THAT IS NOT INCLUDED IN A COMBINED REPORT
 WITH THE TAXPAYER, less, (IV) in the discretion of the  commissioner  of
 finance,  any interest deductions directly or indirectly attributable to
 that income. In lieu of subtracting  from  its  exempt  CFC  income  the
 amount  of  those interest deductions, the taxpayer may make a revocable
 election to reduce its total exempt CFC income by forty percent. If  the
 taxpayer  makes this election, the taxpayer must also make the elections
 provided for in paragraph (b) of subdivision five of  this  section  and
 paragraph  (c) of this subdivision. If the taxpayer subsequently revokes
 this election, the taxpayer must revoke the elections  provided  for  in
 paragraph  (b)  of subdivision five of this section and paragraph (c) of

 S. 7509--B                         41
 
 this subdivision.  A taxpayer which does not make this election  because
 it  has  no  exempt  CFC  income will not be precluded from making those
 other elections.
   §  2.  Subparagraph 6 of paragraph (a) of subdivision 9 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:
   (6)  any amount treated as dividends pursuant to section seventy-eight
 of the internal revenue code TO THE EXTENT THAT SUCH DIVIDENDS  ARE  NOT
 DEDUCTED  UNDER  SUBPARAGRAPH (B)(II) OF PARAGRAPH (1) OF SUBSECTION (A)
 OF SECTION 250 OF SUCH CODE;
   § 2-a. Subparagraph 2-a of paragraph (a) of subdivision 8  of  section
 11-652  of  the administrative code of the city of New York, as added by
 section 1 of part D of chapter 60 of the laws of  2015,  is  amended  to
 read as follows:
   (2-a)  any  amounts  treated as dividends pursuant to section seventy-
 eight of the internal revenue code, TO THE EXTENT  THAT  SUCH  DIVIDENDS
 ARE  NOT  DEDUCTED  UNDER  SUBPARAGRAPH  (B)(II)  OF  PARAGRAPH  ONE  OF
 SUBSECTION (A) OF SECTION 250 OF SUCH CODE;
   § 3. Paragraph (b) of subdivision 9 of section 208 of the tax  law  is
 amended  by  adding four new subparagraphs 23, 24, 25, and 26 to read as
 follow:
   (23)  THE  AMOUNT  OF  ANY  FEDERAL  DEDUCTION  ALLOWED  PURSUANT   TO
 SUBSECTION (C) OF SECTION 965 OF THE INTERNAL REVENUE CODE.
   (24)  THE AMOUNT OF THE FEDERAL DEDUCTION ALLOWED PURSUANT TO SUBPARA-
 GRAPH (B)(I) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION  250  OF  THE
 INTERNAL REVENUE CODE.
   (25) THE AMOUNT DISALLOWED AS A DEDUCTION PURSUANT TO PARAGRAPH ONE OF
 SUBSECTION (J) OF SECTION 163 OF THE INTERNAL REVENUE CODE.
   (26)  ANY  AMOUNT  DEDUCTED BY REASON OF A CARRY FORWARD OF DISALLOWED
 BUSINESS INTEREST PURSUANT TO PARAGRAPH TWO OF SUBSECTION (J) OF SECTION
 163 OF THE INTERNAL REVENUE CODE.
   § 3-a. Subparagraph 19 of paragraph (b) of subdivision  8  of  section
 11-652  of  the administrative code of the city of New York, as added by
 section 1 of part D of chapter 60 of the laws of 2015,  is  amended  and
 four new subparagraphs 20, 21, 22, and 23 are added to read as follows:
   (19) the amount of any federal deduction for taxes imposed under arti-
 cle twenty-three of the tax law[.];
   (20)   THE  AMOUNT  OF  ANY  FEDERAL  DEDUCTION  ALLOWED  PURSUANT  TO
 SUBSECTION (C) OF SECTION 965 OF THE INTERNAL REVENUE CODE;
   (21) THE AMOUNT OF THE FEDERAL DEDUCTION ALLOWED PURSUANT TO  SUBPARA-
 GRAPH  (B)(I)  OF  PARAGRAPH ONE OF SUBSECTION (A) OF SECTION 250 OF THE
 INTERNAL REVENUE CODE;
   (22) THE AMOUNT DISALLOWED AS A DEDUCTION PURSUANT TO PARAGRAPH ONE OF
 SUBSECTION (J) OF SECTION 163 OF THE INTERNAL REVENUE CODE;
   (23) ANY AMOUNT DEDUCTED BY REASON OF A CARRY  FORWARD  OF  DISALLOWED
 BUSINESS INTEREST PURSUANT TO PARAGRAPH TWO OF SUBSECTION (J) OF SECTION
 163 OF THE INTERNAL REVENUE CODE.
   §  4. Paragraph 1 of subsection (c) of section 1085 of the tax law, as
 amended by section 13-a of part Q of chapter 60 of the laws of 2016,  is
 amended to read as follows:
   (1) If any taxpayer fails to file a declaration of estimated tax under
 article  nine-A  of  this chapter, or fails to pay all or any part of an
 amount which is applied as an installment against such estimated tax, it
 shall be deemed to have made an underpayment  of  estimated  tax.  There
 shall  be  added to the tax for the taxable year an amount at the under-
 payment rate set by the commissioner pursuant to  section  one  thousand

 S. 7509--B                         42
 
 ninety-six  of  this article, or if no rate is set, at the rate of seven
 and one-half percent per annum upon the amount of the  underpayment  for
 the  period  of the underpayment but not beyond the fifteenth day of the
 [third]  FOURTH month following the close of the taxable year. PROVIDED,
 HOWEVER, THAT, FOR TAXABLE YEARS BEGINNING ON OR  AFTER  JANUARY  FIRST,
 TWO  THOUSAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN,
 NO AMOUNT SHALL BE ADDED TO THE TAX WITH RESPECT TO THE PORTION OF  SUCH
 TAX  RELATED  TO THE AMOUNT OF ANY INTEREST DEDUCTIONS DIRECTLY OR INDI-
 RECTLY ATTRIBUTABLE TO THE AMOUNT INCLUDED IN EXEMPT CFC INCOME PURSUANT
 TO SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVISION  SIX-A  OF  SECTION
 TWO HUNDRED EIGHT OF THIS CHAPTER OR THE FORTY PERCENT REDUCTION OF SUCH
 EXEMPT  CFC  INCOME  IN  LIEU  OF  INTEREST  ATTRIBUTION IF THE ELECTION
 DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION SIX-A OF SUCH SECTION IS MADE.
 The amount of the underpayment shall be, with respect to any installment
 of estimated tax computed on the basis of either  the  preceding  year's
 tax  or  the  second  preceding  year's  tax,  the  excess of the amount
 required to be paid over the amount, if any, paid on or before the  last
 day  prescribed  for such payment or, with respect to any other install-
 ment of estimated tax, the excess of the amount of the installment which
 would be required to be paid if the estimated tax were equal to  ninety-
 one  percent  of the tax shown on the return for the taxable year (or if
 no return was filed, ninety-one percent of the tax for such  year)  over
 the  amount,  if  any, of the installment paid on or before the last day
 prescribed for such payment. In any case in  which  there  would  be  no
 underpayment  if  "eighty  percent"  were  substituted  for  "ninety-one
 percent" each place it appears in this subsection, the addition  to  the
 tax  shall  be  equal  to  seventy-five  percent of the amount otherwise
 determined. No underpayment shall be deemed to exist with respect  to  a
 declaration  or installment otherwise due on or after the termination of
 existence of the taxpayer.
   § 4-a. Subdivision 3 of section 11-676 of the administrative  code  of
 the  city  of new York, as amended by section 12 of part D of chapter 60
 of the laws of 2015, is amended to read as follows:
   3. Failure to file declaration or underpayment of  estimated  tax.  If
 any taxpayer fails to file a declaration of estimated tax under subchap-
 ter  two,  three  or three-A of this chapter, or fails to pay all or any
 part of an amount which is applied as an installment against such  esti-
 mated  tax, it shall be deemed to have made an underpayment of estimated
 tax.  There shall be added to the tax for the taxable year an amount  at
 the  underpayment  rate  set  by the commissioner of finance pursuant to
 section 11-687 of this subchapter, or, if no rate is set, at the rate of
 seven and one-half percent per annum upon the amount of the underpayment
 for the period of the underpayment but not beyond the fifteenth  day  of
 the  [third]  FOURTH  month  following  the  close  of the taxable year.
 PROVIDED, HOWEVER, THAT, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
 FIRST, TWO THOUSAND SEVENTEEN AND BEFORE  JANUARY  FIRST,  TWO  THOUSAND
 EIGHTEEN,  NO  AMOUNT  SHALL  BE  ADDED  TO  THE TAX WITH RESPECT TO THE
 PORTION OF SUCH TAX RELATED TO THE AMOUNT  OF  ANY  INTEREST  DEDUCTIONS
 DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO THE AMOUNT INCLUDED IN EXEMPT CFC
 INCOME  PURSUANT  TO  SUBPARAGRAPH  (II) OF PARAGRAPH (B) OF SUBDIVISION
 SIX-A OF SECTION TWO HUNDRED EIGHT OF THE TAX LAW OR THE  FORTY  PERCENT
 REDUCTION  OF  SUCH EXEMPT CFC INCOME IN LIEU OF INTEREST ATTRIBUTION IF
 THE ELECTION DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION SIX-A OF  SECTION
 TWO HUNDRED EIGHT OF THE TAX LAW IS MADE. The amount of the underpayment
 shall  be,  with respect to any installment of estimated tax computed on
 the basis of the preceding year's tax, the excess of the amount required

 S. 7509--B                         43
 
 to be paid over the amount, if any, paid  on  or  before  the  last  day
 prescribed for such payment or, with respect to any other installment of
 estimated  tax,  the excess of the amount of the installment which would
 be required to be paid if the estimated tax were equal to ninety percent
 of the tax shown on the return for the taxable year (or if no return was
 filed, ninety percent of the tax for such year) over the amount, if any,
 of  the  installment  paid on or before the last day prescribed for such
 payment. In any case in which there would be no underpayment if  "eighty
 percent"  were substituted for "ninety percent" each place it appears in
 this subdivision, the addition to the tax shall be equal to seventy-five
 percent of the amount otherwise determined.  No  underpayment  shall  be
 deemed  to  exist with respect to a declaration or installment otherwise
 due on or after the termination of existence of the taxpayer.
   § 4-b. Subparagraph 11 of paragraph (a) of subdivision  9  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 and a new paragraph (u) is added to read as
 follows:
   (11) the amount deductible pursuant to [paragraph] PARAGRAPHS (j)  AND
 (U) of this subdivision; and
   (U)  A  TAXPAYER  SHALL BE ALLOWED A DEDUCTION IN COMPUTING ENTIRE NET
 INCOME FOR ANY FDIC PREMIUM PAID OR INCURRED BY  THE  TAXPAYER  THAT  IS
 DISALLOWED  AS  A  DEDUCTION  UNDER SUBSECTION (R) OF SECTION 162 OF THE
 INTERNAL REVENUE CODE.
   § 4-c. Subparagraph 10 of paragraph (a) of subdivision  8  of  section
 11-652 of the administrative code of the city of New York, as amended by
 section  1 of part D of chapter 60 of the laws of 2015, is amended and a
 new paragraph (u) is added to read as follows:
   (10) the amount deductible pursuant to [paragraph] PARAGRAPHS (j)  AND
 (U) of this subdivision;
   (U)  A  TAXPAYER  SHALL BE ALLOWED A DEDUCTION IN COMPUTING ENTIRE NET
 INCOME FOR ANY FDIC PREMIUM PAID OR INCURRED BY  THE  TAXPAYER  THAT  IS
 DISALLOWED  AS  A  DEDUCTION  UNDER SUBSECTION (R) OF SECTION 162 OF THE
 INTERNAL REVENUE CODE.
   § 5. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2017.
 
                                  PART LL
 
                           Intentionally omitted
 
                                  PART MM
 
                           Intentionally omitted
 
                                  PART NN
 
   Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 431 to read as follows:
   § 431. SENIOR CAPPED REAL PROPERTY SCHOOL TAX RATE. 1. (A) RESIDENTIAL
 REAL PROPERTY OWNED AND OCCUPIED BY ONE OR MORE PERSONS, EACH OF WHOM IS
 SEVENTY  YEARS  OF  AGE  OR OVER ON OR BEFORE THE TAXABLE STATUS DATE IN
 TAXABLE YEAR TWO THOUSAND NINETEEN AND MEETS EACH  OF  THE  REQUIREMENTS
 FOR THE ENHANCED EXEMPTION FOR SENIOR CITIZENS SET FORTH IN SECTION FOUR
 HUNDRED  TWENTY-FIVE OF THIS ARTICLE, OR RESIDENTIAL REAL PROPERTY OWNED
 AND OCCUPIED BY HUSBAND AND WIFE, ONE OF WHOM IS SEVENTY YEARS OF AGE OR

 S. 7509--B                         44
 
 OVER AND MEETS EACH OF THE REQUIREMENTS FOR THE ENHANCED  EXEMPTION  FOR
 SENIOR  CITIZENS  SET  FORTH IN SECTION FOUR HUNDRED TWENTY-FIVE OF THIS
 ARTICLE, SHALL BE ELIGIBLE FOR THE CAPPED REAL PROPERTY SCHOOL TAX  RATE
 SET  FORTH  IN  THIS SECTION, PROVIDED THE SCHOOL DISTRICT, AFTER PUBLIC
 HEARING, ADOPTS A  RESOLUTION PROVIDING THEREFOR. FOR PURPOSES  OF  THIS
 SUBDIVISION,  THE TERM "CAPPED REAL PROPERTY SCHOOL TAX RATE" SHALL MEAN
 THE REAL PROPERTY SCHOOL TAX RATE ESTABLISHED ON ANY TAXABLE STATUS DATE
 IN CALENDAR YEAR TWO THOUSAND EIGHTEEN.
   (B) RESIDENTIAL REAL PROPERTY  OWNED  AND  OCCUPIED  BY  ONE  OR  MORE
 PERSONS,  EACH  OF  WHOM IS SIXTY-FIVE YEARS OF AGE OR OVER ON OR BEFORE
 THE TAXABLE STATUS DATE IN TAX YEAR TWO  THOUSAND TWENTY AND MEETS  EACH
 OF  THE  REQUIREMENTS FOR THE ENHANCED EXEMPTION FOR SENIOR CITIZENS SET
 FORTH IN SECTION FOUR HUNDRED TWENTY-FIVE OF THIS ARTICLE,  OR  RESIDEN-
 TIAL  REAL  PROPERTY OWNED AND OCCUPIED BY HUSBAND AND WIFE, ONE OF WHOM
 IS SIXTY-FIVE YEARS OF AGE OR OVER AND MEETS EACH  OF  THE  REQUIREMENTS
 FOR THE ENHANCED EXEMPTION FOR SENIOR CITIZENS SET FORTH IN SECTION FOUR
 HUNDRED  TWENTY-FIVE  OF  THIS ARTICLE, SHALL BE ELIGIBLE FOR THE CAPPED
 REAL PROPERTY SCHOOL TAX RATE SET FORTH IN THIS  SECTION,  PROVIDED  THE
 SCHOOL  DISTRICT,  AFTER  PUBLIC  HEARING, ADOPTS A RESOLUTION PROVIDING
 THEREFOR.  FOR PURPOSES OF THIS SUBDIVISION,  THE  TERM    "CAPPED  REAL
 PROPERTY  SCHOOL  TAX RATE" SHALL MEAN THE REAL PROPERTY SCHOOL TAX RATE
 ESTABLISHED ON THE TAXABLE STATUS DATE SUBSEQUENT TO THE TAXABLE  STATUS
 DATE ON WHICH AN ELIGIBLE PERSON ATTAINS THE AGE OF SIXTY-FIVE YEARS.
   2.  ANY  PERSON  ELIGIBLE FOR THE CAPPED REAL PROPERTY SCHOOL TAX RATE
 SHALL APPLY ANNUALLY FOR SUCH CAPPED RATE.  SUCH  APPLICATION  SHALL  BE
 MADE  IN  A  MANNER  AND  FORM   DETERMINED BY THE STATE BOARD AND SHALL
 REQUIRE PROOF OF THE APPLICANT'S AGE. SUCH APPLICATION  SHALL  BE  FILED
 WITH  THE  LOCAL ASSESSOR ON OR BEFORE THE TAXABLE STATUS DATE FOR  SUCH
 DISTRICT.
   3. BEGINNING IN THE SECOND YEAR OF  QUALIFYING  FOR  THE  CAPPED  REAL
 PROPERTY SCHOOL TAX RATE ESTABLISHED IN SUBDIVISION ONE OF THIS SECTION,
 THE  RATE  OF  TAX  OWED BY A PERSON OWNING REAL PROPERTY IN YEAR ONE OF
 QUALIFYING FOR THE CAPPED REAL PROPERTY SCHOOL TAX RATE WOULD BE REDUCED
 BY THE FOLLOWING SCHEDULE:
   YEAR TWO: TEN PERCENT
   YEAR THREE: TWENTY PERCENT
   YEAR FOUR: THIRTY PERCENT
   YEAR FIVE: FORTY PERCENT
   YEAR SIX: FIFTY PERCENT
   YEAR SEVEN: SIXTY PERCENT
   YEAR EIGHT: SEVENTY PERCENT
   YEAR NINE: EIGHTY PERCENT
   YEAR TEN: NINETY PERCENT
   YEAR ELEVEN AND THEREAFTER: ONE HUNDRED PERCENT
   4. EVERY SCHOOL DISTRICT SHALL NOTIFY, OR CAUSE TO BE  NOTIFIED,  EACH
 PERSON  OWNING  RESIDENTIAL  REAL PROPERTY IN THE SCHOOL DISTRICT OF THE
 PROVISIONS OF THIS SECTION. THE PROVISIONS  OF THIS SUBDIVISION  MAY  BE
 MET  BY  A  NOTICE  SENT TO SUCH PERSONS IN SUBSTANTIALLY THE  FOLLOWING
 FORM: "RESIDENTIAL REAL PROPERTY OWNED BY PERSONS  SIXTY-FIVE  YEARS  OF
 AGE OR OLDER MAY BE ELIGIBLE FOR A CAPPED REAL PROPERTY SCHOOL TAX RATE.
 TO RECEIVE SUCH CAPPED RATE, ELIGIBLE OWNERS OF QUALIFYING PROPERTY MUST
 FILE  AN APPLICATION WITH THEIR LOCAL ASSESSOR ON OR BEFORE THE APPLICA-
 BLE TAXABLE STATUS DATE. FOR FURTHER INFORMATION,  PLEASE  CONTACT  YOUR
 LOCAL ASSESSOR."
   5.  A SCHOOL DISTRICT WHICH PROVIDES A CAPPED REAL PROPERTY SCHOOL TAX
 RATE FOR PERSONS SIXTY-FIVE YEARS  OF  AGE  OR  OVER  PURSUANT  TO  THIS

 S. 7509--B                         45
 
 SECTION  SHALL BE ELIGIBLE FOR REIMBURSEMENT BY THE DEPARTMENT OF EDUCA-
 TION, AS APPROVED BY THE COMMISSIONER OF EDUCATION, IN CONSULTATION WITH
 THE COMMISSIONER OF TAXATION AND FINANCE, FOR ONE HUNDRED PERCENT OF THE
 DIRECT COST TO SUCH SCHOOL DISTRICT RESULTING FROM THE IMPLEMENTATION OF
 THIS  SECTION.  SUCH  DIRECT  COST SHALL BE CALCULATED PURSUANT TO REGU-
 LATIONS OF THE COMMISSIONER  OF  EDUCATION,  IN  CONSULTATION  WITH  THE
 COMMISSIONER  OF  TAXATION  AND  FINANCE. A CLAIM FOR SUCH REIMBURSEMENT
 SHALL BE MADE BY SUCH SCHOOL DISTRICT IN A MANNER AND FORM PRESCRIBED BY
 THE COMMISSIONER OF EDUCATION.
   § 2. Paragraph 3 of subsection (n-1) of section 606 of the tax law, as
 added by section 1 of subpart B of part C of chapter 20 of the  laws  of
 2015, is amended as follows:
   (3)  Amount  of  credit. (a) For the two thousand sixteen taxable year
 (i) for a taxpayer residing in real property located within  the  metro-
 politan  commuter transportation district (MCTD) and outside the city of
 New York, the amount of the credit shall be $130; (ii)  for  a  taxpayer
 residing  in  real  property located outside the MCTD, the amount of the
 credit shall be $185.
   (b) For the two thousand seventeen,  two  thousand  eighteen  and  two
 thousand  nineteen taxable years (i) For a taxpayer who owned and prima-
 rily resided in real property receiving the basic  STAR  exemption,  the
 amount  of  the  credit shall equal the STAR tax savings associated with
 such basic STAR exemption, multiplied by the following percentage:
   (A) for the two thousand seventeen taxable year:
 Qualified Gross Income                  Percentage
 Not over $75,000                        28%
 Over $75,000 but not over $150,000      20.5%
 Over $150,000 but not over $200,000     13%
 Over $200,000 but not over $275,000     5.5%
 Over $275,000                           No credit
   (B) for the two thousand eighteen taxable year:
 Qualified Gross Income                  Percentage
 Not over $75,000                        60%
 Over $75,000 but not over $150,000      42.5%
 Over $150,000 but not over $200,000     25%
 Over $200,000 but not over $275,000     7.5%
 Over $275,000                           No credit
   (C) for the two thousand nineteen taxable year AND THEREAFTER:
 Qualified Gross Income                  Percentage
 Not over $75,000                        [85%] 100%
 Over $75,000 but not over $150,000      [60%] 75%
 Over $150,000 but not over $200,000     [35%] 43.75%
 Over $200,000 but not over $275,000     [10%] 12.5%
 Over $275,000                           No credit
   (c) For a taxpayer who owned and primarily resided  in  real  property
 receiving  the  enhanced  STAR exemption, the amount of the credit shall
 equal the STAR tax savings associated with such enhanced STAR exemption,
 multiplied by the following percentage:
 Taxable Year                            Percentage
 two thousand seventeen                  12%
 two thousand eighteen                   26%
 two thousand nineteen AND THEREAFTER    [34%] 42.5%
   (d) In no case may  the  amount  of  the  credit  allowed  under  this
 subsection  exceed  the  school  district  taxes due with respect to the
 residence for that school year.

 S. 7509--B                         46
 
   § 3. This act shall take effect on the first of January next  succeed-
 ing  the  date  on  which  it shall have become a law and shall apply to
 assessment rolls prepared on the basis of taxable status dates occurring
 on or after such date.
 
                                  PART OO
 
   Section  1.  Section  13  of part A of chapter 97 of the laws of 2011,
 amending the general municipal law and the  education  law  relating  to
 establishing  limits  upon  school  district  and  local  government tax
 levies, as amended by section 18 of part A of chapter 20 of the laws  of
 2015, is amended to read as follows:
   §  13. This act shall take effect immediately; provided, however, that
 sections two through eleven of this act shall take effect July  1,  2011
 and shall first apply to school district budgets and the budget adoption
 process  for  the  2012-13  school  year; and shall continue to apply to
 school district budgets and the budget adoption process for  any  school
 year  beginning in any calendar year during which this act is in effect;
 provided further, that if section 26 of part A of chapter 58 of the laws
 of 2011 shall not have taken effect on or before such date then  section
 ten  of  this  act  shall  take  effect on the same date and in the same
 manner as such chapter of the  laws  of  2011,  takes  effect;  provided
 further,  that  section one of this act shall first apply to the levy of
 taxes by local governments for the fiscal year that begins in  2012  and
 shall  continue  to  apply to the levy of taxes by local governments for
 any fiscal year beginning in any calendar year during which this act  is
 in  effect[; provided, further, that this act shall remain in full force
 and effect at a minimum until and including  June  15,  2020  and  shall
 remain in effect thereafter only so long as the public emergency requir-
 ing  the  regulation  and control of residential rents and evictions and
 all such laws providing for such  regulation  and  control  continue  as
 provided  in  subdivision  3  of  section  1 of the local emergency rent
 control act, sections 26-501, 26-502 and 26-520  of  the  administrative
 code  of  the city of New York, section 17 of chapter 576 of the laws of
 1974 and subdivision 2 of section 1 of chapter 274 of the laws  of  1946
 constituting  the  emergency housing rent control law, and section 10 of
 chapter 555 of the laws of 1982, amending the general business  law  and
 the  administrative code of the city of New York relating to conversions
 of residential property  to cooperative or condominium ownership in  the
 city of New York as such laws are continued by chapter 93 of the laws of
 2011 and as such sections are amended from time to time].
   § 2. This act shall take effect immediately.
 
                                  PART PP
 
   Section  1. Paragraph (b) of subdivision 1 of section 186-a of the tax
 law, as amended by section 4 of part Y of chapter  63  of  the  laws  of
 2000, is amended to read as follows:
   (b)  a tax equal to (1) two and five-tenths percent on and after Janu-
 ary first, two thousand through December thirty-first, two thousand, two
 and forty-five one hundredths percent from January first,  two  thousand
 one through December thirty-first, two thousand one, two and four-tenths
 percent  from  January  first, two thousand two through December thirty-
 first, two thousand two, two and twenty-five one hundredths percent from
 January first, two thousand three  through  December  thirty-first,  two
 thousand  three, two and one hundred twenty-five one thousandths percent

 S. 7509--B                         47
 
 from January first, two thousand four through December thirty-first, two
 thousand four and two percent [commencing] FROM January first, two thou-
 sand five, THROUGH DECEMBER THIRTY-FIRST TWO THOUSAND EIGHTEEN, ONE  AND
 FIVE-TENTHS  PERCENT  FROM  JANUARY FIRST, TWO THOUSAND NINETEEN THROUGH
 DECEMBER THIRTY-FIRST, TWO THOUSAND NINETEEN, ONE PERCENT  FROM  JANUARY
 FIRST,  TWO  THOUSAND TWENTY THROUGH DECEMBER THIRTY-FIRST, TWO THOUSAND
 TWENTY, FIVE-TENTHS OF A PERCENT FROM JANUARY FIRST, TWO THOUSAND  TWEN-
 TY-ONE  TO  DECEMBER  THIRTY-FIRST,  TWO  THOUSAND  TWENTY-ONE, AND ZERO
 PERCENT COMMENCING JANUARY FIRST, TWO THOUSAND TWENTY-TWO and thereafter
 of that portion of its gross income  derived  from  the  transportation,
 transmission or distribution of gas or electricity by means of conduits,
 mains, pipes, wires, lines or the like and (2) two and one-tenth percent
 from  January  first,  two  thousand  through December thirty-first, two
 thousand, two percent from  January  first,  two  thousand  one  through
 December  thirty-first,  two  thousand  one, one and nine-tenths percent
 from January first, two thousand two through December thirty-first,  two
 thousand  two,  eighty-five  one  hundredths of one percent from January
 first, two thousand three through December  thirty-first,  two  thousand
 three,  four-tenths of one percent from January first, two thousand four
 through December  thirty-first,  two  thousand  four  and  zero  percent
 commencing  January  first,  two thousand five of all of its other gross
 income, is hereby imposed upon every utility not taxed  under  paragraph
 (a) of this subdivision doing business in this state which is subject to
 the  supervision  of  the state department of public service which has a
 gross income for the year ending December thirty-first in excess of five
 hundred dollars, except motor carriers or brokers subject to such super-
 vision under the public service law; and
   § 2. This act shall take effect immediately.
 
                                  PART QQ
 
   Section 1. Subdivisions 1 and  1-a  of  section  18-a  of  the  public
 service law, subdivision 1 as amended by section 2 of part NN of chapter
 59 of the laws of 2009 and subdivision 1-a as added by section 2 of part
 A of chapter 173 of the laws of 2013, are amended to read as follows:
   1.  All  costs  and expenses of the department and commission shall be
 paid pursuant to appropriation on the certification of the  chairman  of
 the  department  and  upon the audit and warrant of the comptroller. The
 state treasury shall be reimbursed therefore  by  payments  to  be  made
 thereto  from  all  moneys collected pursuant to this chapter. [The] FOR
 STATE FISCAL YEARS BEGINNING PRIOR TO APRIL 1, 2019, THE total  of  such
 costs  and  expenses  shall  be  borne  by  the public utility companies
 (including for the purposes of this section  municipalities  other  than
 municipalities  as  defined  in  section eighty-nine-l of this chapter),
 corporations (including the power authority of the state of  New  York),
 and  persons  subject  to the commission's regulation, to be assessed in
 the manner provided in subdivisions two, three and four of this  section
 and section two hundred seventeen of this chapter.  PROVIDED HOWEVER FOR
 THE STATE FISCAL YEAR THAT BEGINS ON APRIL FIRST, TWO THOUSAND NINETEEN,
 SUCH  ASSESSMENT  SHALL  BE  IN  AN  AMOUNT THAT IS FIFTY PERCENT OF THE
 AMOUNT CALCULATED IN SUBDIVISIONS TWO, THREE AND FOUR  OF  THIS  SECTION
 AND  SECTION TWO HUNDRED SEVENTEEN OF THIS CHAPTER. PROVIDED FURTHER FOR
 STATE FISCAL YEARS THAT BEGIN ON AND AFTER  APRIL  FIRST,  TWO  THOUSAND
 TWENTY,  THE  AMOUNT  OF SUCH ASSESSMENT CALCULATED IN SUBDIVISIONS TWO,
 THREE AND FOUR OF THIS SECTION AND SECTION TWO HUNDRED SEVENTEEN OF THIS

 S. 7509--B                         48
 
 CHAPTER SHALL BE ZERO AND ALL COSTS OF  THE  DEPARTMENT  AND  COMMISSION
 SHALL BE PAID BY THE STATE TREASURY.
   1-a.  All  costs and expenses of the department related to the depart-
 ment's responsibilities under section three-b of this chapter  shall  be
 paid  pursuant  to appropriation on the certification of the chairman of
 the department and upon the audit and warrant of  the  comptroller.  For
 the  state  fiscal  [year]  YEARS beginning on April first, two thousand
 fourteen and [each state fiscal  year  thereafter]  BEGINNING  PRIOR  TO
 APRIL  FIRST,  TWO  THOUSAND  TWENTY,  payments  are to be made from all
 moneys collected from the Long Island power authority pursuant  to  this
 section.  The total of such costs and expenses shall be assessed on such
 authority in the manner provided in subdivisions two, three and four  of
 this section.  PROVIDED HOWEVER FOR THE STATE FISCAL YEAR THAT BEGINS ON
 APRIL  FIRST,  TWO  THOUSAND  NINETEEN,  SUCH  ASSESSMENT SHALL BE IN AN
 AMOUNT THAT IS FIFTY PERCENT OF THE AMOUNT  CALCULATED  IN  SUBDIVISIONS
 TWO,  THREE AND FOUR OF THIS SECTION.  PROVIDED FURTHER FOR STATE FISCAL
 YEARS THAT BEGIN ON AND AFTER APRIL  FIRST,  TWO  THOUSAND  TWENTY,  THE
 AMOUNT OF SUCH ASSESSMENT CALCULATED IN SUBDIVISIONS TWO, THREE AND FOUR
 OF  THIS  SECTION  SHALL  BE  ZERO  AND  ALL COSTS OF THE DEPARTMENT AND
 COMMISSION SHALL BE PAID BY THE STATE TREASURY.
   § 2. This act shall take effect immediately.
 
                                  PART RR

   Section 1. Paragraph 3-a of subsection (c) of section 612 of  the  tax
 law,  as  amended  by  section  3 of part I of chapter 59 of the laws of
 2015, is amended to read as follows:
   (3-a) Pensions  and  annuities  received  by  an  individual  who  has
 attained  the  age  of  fifty-nine  and one-half, not otherwise excluded
 pursuant to paragraph three of this subsection, to the extent includible
 in gross income for federal income tax purposes, but not  in  excess  of
 [twenty]  TWENTY-FIVE THOUSAND DOLLARS FOR ANY TAXABLE YEAR BEGINNING ON
 OR AFTER JANUA